Patrimoine Et Commerce · EURONEXT:PAT
Patrimoine Et Commerce — Patrimoine & Commerce — H1 2014 Earnings Presentation
37 slides from Patrimoine Et Commerce's earnings presentation, Sep 30, 2014
Slide 1: First Half 2014 Results
FIRST HALF 2014 RESULTS September 30, 2014 SFAF Meeting The low cost retail park specialist
Slide 2: Disclaimer
2 Disclaimer This document was prepared by Patrimoine & Commerce for the sole purpose of presenting its first half results on 30 September 2014. Since 1 January 2014 Patrimoine & Commerce has applied IFRS 10 and 11. Application has been backdated to 2013 and the comparative figures have been restate
Slide 3: Contents
3 CONTENTS First half 2014 financial and operating results Vision and strategy: "The leading low cost retail park company" Two transactions that boost the institutional standing of Patrimoine & Commerce The low cost retail park specialist
Slide 4: First half 2014 key figures
4 First half 2014 key figures m² 68 Assets 318,000 surface area (1) Rental €520m Total asset value (2) €15.8m income (3) Capitalisation 46.2% LTV (4) 7.5% rate (5) (1) Total surface area of owned assets (2) Excluding transfer taxes (incl. group share of Cherbourg and Studio Prod) (3) H1 2014 gross r
Slide 5: First Half 2014 Results
5 FIRST HALF 2014 RESULTS Results in line with forecasts The low cost retail park specialist
Slide 6: Key deliveries in 2014
6 Key deliveries in 2014 Pontarlier (25) Frouard (54) Surface area 2,700 m² Surface area 740 m² Delivery date March 2014 Delivery date January 2014 Occupancy rate 100% Occupancy rate 100% Rental income €0.3m Rental income €0.1m Istres Hippopotamus (13) Limoges Le Vigen (87) Surface area 316 m² Surfa
Slide 7: Status of the asset sale programme
7 Status of the asset sale programme 1 asset sold €2.5m > Metz sold in July 2014 2 assets under promise of sale €2.9m > Montbelliard > Chasseneuil-du-Poitou Sales prices in line with appraisal values The low cost retail park specialist
Slide 8: Breakdown of retail rental income
8 Breakdown of retail rental income TOP 15 retailers (42% of total rental income) Type of retail outlet Household goods Personal goods 29% 37% 7% Food 6% 21% Health & cosmetics Culture & entertainment The largest retailer accounts for 9% of retail rental income The low cost retail park specialist
Slide 9: Stable and recurring income
9 Stable and reccuring income > Occupancy rate 97.5%* > Default rate c. 1% > Lease indexation • ICC 35% • ILC 63% • ILAT (offices) 2% > Average rent • Retail parks €116 per m² • Shopping malls and centres €297 per m² > Tenant turnover rate < 1% Lease expiry schedule €5m (end of lease) €4m €3m €2m €1
Slide 10: Increase in gross rental income
10 Increase in gross rental income €m 1.5 +5.1% (0.5) (0.1) (0.1) 15.8 15.0 Gross H1 2013 Deliveries Disposals Strategic vacancy Indexation Gross H1 2014 rental income Renegotiations rental income The low cost retail park specialist
Slide 11: Income statement (1/2)
11 Income statement (1/2) 6 months 6 months Change Change €m H1 2014 H1 2013 €m % Gross rental income 15.8 15.0 0.8 +5.1% Net rental income 15.5 14.8 0.7 +4.7% Operating expenses (1.6) (1.7) 0.1 -4.9% Normative EBITDA 13.9 13.1 0.8 +5.9% As % of net rental income 90% 89% Non-SIIC assets current tax
Slide 12: Income statement (2/2)
12 Income statement (2/2) 6 months 6 months Change €m H1 2014 H1 2013 €m Recurring funds from operations 9.7 9.7 (0.0) Change in FV of properties 0.6 1.0 (0.4) Increase in transfer taxes (2.1) - (2.1) €(5.3)m Change in FV of financial instruments (1.5) 1.7 (3.2) Other income and expenses (1.5) (2.8)
Slide 13: Sound financial structure
13 Sound financial structure €m 548 548 222 Equity Group share Investment 490 properties 12 Minority interests 256 Financial debt Other 58 58 Other Assets Liabilities June 2014 June 2014 The low cost retail park specialist
Slide 14: Sound financial ratios
14 Sound financial ratios €m 30/06/2014 31/12/2013 Gross debt Net debt 1 226.5 217.0 Bonds €30.0m Average maturity (years) 6.8 7.0 % debt hedged 79.4% 80.2% Finance leases €88.1m Borrowings Debt average interest rate 3.7% 3.9% €131.5m LTV 1 46.2% 45.8% 1 Adjusted for net disposals proceeds of assets
Slide 15: Stable debt repayment
15 Stable debt repayment €m Bonds 30.0 Bank loans Finance lease liabilities 78.5 8.2 9.3 9.8 10.0 10.6 37.8 10.4 10.5 10.7 9.4 9.3 1 year 2 years 3 years 4 years 5 years More than 5 years * Excluding VAT bridging loan, developer loans and accrued interest The low cost retail park specialist
Slide 16: Change in NAV
16 Change in NAV NAV/share €23.1 €m (0.3) NAV/share 0.6 €22.2 (7.8) Dividend 8.2 +4% (2.1) Transfer taxes (1.5) Change in financial instrument FV 221.9 224.8 213.4 NAV excl. TT Restatements Restated NAV Net income excl. Change in FV Other NAV excl.TT January 2014 January 2014 change in FV of propert
Slide 17: Strategy based on long-term vision of retail property
17 PATRIMOINE & COMMERCE 1- Strategy based on long-term vision of retail property in medium-sized French cities From family business to institutional real estate company The low cost retail park specialist
Slide 18: New expectations from retailers and local authorities
18 New expectations from retailers and local authorities Retailers Local authorities > Ever increasing consumer demand for > Control suburban developments so low prices as to: (i) Meet consumer expectations > Growing competition from online while protecting town centres sales focusing on price (ii)
Slide 19: Low cost retail parks, an appropriate solution
19 Low cost retail parks, an appropriate solution Shopping centres located just outside towns Specific profile for low cost retail parks Property charges > Very low charges €15 /m² > High yield • Higher than shopping centres and high street shops 7.5% > Low capex • Reduced maintenance costs • Immate
Slide 20: A vast and fragmented market
20 A vast and fragmented market A vast market > 914 medium-sized towns totalling over 25 million inhabitants(1) Breakdown of the French population > Higher proportion of the population living in the suburbs Rural areas 18% 30% > 3.4 million m² of planned retail parks built in France 28% since 2000 (
Slide 21: An institutional solution for the retail parks model ramp-up
21 Patrimoine & Commerce, an institutional solution for the retail parks model ramp-up Located Stable Occupancy rate c. 98% nationwide revenues Tenant turnover < 1% SIIC Transparency Rigour A tailored Driver of 220,000 m² acquired management since 2010 consolidation solution The low cost retail park
Slide 22: Two key transactions that boost institutional standing
22 PATRIMOINE & COMMERCE 2- Two key transactions that boost the Company’s institutional standing - Predica investment in P&C - Acquisition of retail park portfolio The low cost retail park specialist
Slide 23: Predica acquires equity stake in Patrimoine & Commerce
23 Predica acquires equity stake in Patrimoine & Commerce > 20% stake acquired via a share issue Public float Duval • Transaction value €47.4m family • Low dilution of NAV (3.0 %) 20.5% 24.3% > Reputed institutional shareholder Predica 20.0% 13.4% Vergely 8.1% > Increase in equity family 4.4% 9.3% S
Slide 24: Acquisition of a €90m portfolio
24 Acquisition of a €90m portfolio > Core target assets in Western France – Annual rental income: €6.3m – Average capitalisation rate: 7.0% – Occupancy rate: 100% > Brand-new properties – Average delivery: 2008 > 70% settled in cash and 30% in P&C shares issued at NAV > Transaction expanded tenant b
Slide 25: Trimax portfolio: Le Mans - Val de Sarthe
25 Trimax portfolio: Le Mans - Val de Sarthe 32,485 m² retail park 18 tenants €3.8m rental income 100% occupancy rate The low cost retail park specialist
Slide 26: Trimax portfolio: Le Mans - Val de Sarthe
26 Trimax portfolio: Le Mans - Val de Sarthe The low cost retail park specialist
Slide 27: Trimax portfolio: Alençon Ouest
27 Trimax portfolio: Alençon Ouest 11,919 m² retail park 8 tenants €1.0m rental income 100% occupancy rate The low cost retail park specialist
Slide 28: Trimax portfolio: Arçonnay
28 Trimax portfolio: Arçonnay Literie de France Furniture&living room La Farfouine Restaurant Le Mans Alençon Land reserve 20,780 m² retail park 20 tenants €1.5m rental income 100% occupancy rate The low cost retail park specialist
Slide 29: A leading listed real estate company specialising in retail parks
29 PATRIMOINE & COMMERCE 3- A leading listed real estate company specialising in retail parks The low cost retail park specialist
Slide 30: A specialist retail property company for institutions
30 A specialist retail property company for institutions Assets focusing on retail parks Patrimoine & Commerce following Trimax transaction Pro forma assets: €602m €602m Shopping malls and centres Pro forma rental income: c. €37m* €151m 25% Retail parks €424m 70% 5% Offices and Pro forma NAV: c. €28
Slide 31: A diversified development pipeline
31 A specialist retail property company for institutions A diversified development pipeline Committed pipeline c. €90m > Including Epagny, La Rochelle, Cergy Identified pipeline c. €100m Annecy Epagny (74) - end 2014 La Rochelle (17) - May 2015 Surface area 7,698 m² 100% leased Surface area 5,784 m²
Slide 32: Stock market profile appealing to institutions
32 A specialist retail property company for institutions Stock market profile appealing to institutions Market price 24 +52% (€) 21 18 15 12 Average daily trading 800 volumes 600 400 200 Market track record appealing to institutions Institutional shareholders > Capitalised at close to NAV Debt restr
Slide 33: Development of an institutional property company
33 Development of an institutional property company, a low cost retail parks pure player x4 Total assets NAV x5 Market cap x6 Total assets €164m Pro forma total assets €602m NAV €59m Pro forma NAV €280m Market cap €42m Pro forma market cap €275m The low cost retail park specialist
Slide 34: Long-term objectives confirmed
34 Long-term objectives confirmed €1bn total assets by end 2016 Yield of over 7.0% Loan To Value ratio around 50% Bourg-en-Bresse retail park The low cost retail park specialist
Slide 35: Appendices
35 APPENDICES The low cost retail park specialist
Slide 36: Structured and independent corporate governance
36 Structured and independent corporate governance Management ensured by Eric Duval Supervisory Board, chaired by Dominique Jouaillec > 15 members (8 independent*) Investment Committee, chaired by Jean-Hubert Moitry > 7 members (5 independent*) Audit Committee, chaired by Christian Louis Victor > 4
Slide 37: Summary balance sheet
37 Summary balance sheet €m 30/06/2014 31/12/2013 30/06/2013 Investment properties 490.2 473.7 446.8 Assets held for sale 3.4 4.9 35.3 Cash 6.8 18.3 15.6 Other 47.9 51.1 51.4 Total assets 548.4 547.9 549.2 Equity, Group share 221.9 224.8 215.2 Minority interests 12.4 12.3 11.6 Debts 255.8 257.7 261.
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