Icade Sa · EURONEXT:ICAD
Icade Sa — Investor Presentation (September 2013)
48 slides from Icade Sa's investor presentation, September 2013
Slide 1: Investor Presentation
Veolia head office INVESTOR webeha ite PRESENTATION ©) ICADE |
Slide 2: Contents
Parc du Millénaire, Paris 19th Contents 1 Company snapshot 2 Focus on Silic transaction 3 Business profile 4 Pipeline & projects 5 Financing structure 6 Terms & Conditions of the transaction Appendices
Slide 3: Icade at a glance
Icade at a glance One of the largest property portfolio in Europe, strengthened with the Silic transaction ► Over 420 assets, for a total value of €10.1bn (excl. duties) ► 2012 rental income: €581m ► A portfolio comprising mostly office and business parks located in the Paris region (80%) ► Listed o
Slide 4: A clear strategic vision
A clear strategic vision … I. Strategic focus on a large and diversified portfolio of offices and business parks matching with tenants’ demands and strengthened by the Grand Paris project… ► Portfolio: €10.1bn of which 70% of offices and business parks ► Annualized office rents as of 30th June: €576
Slide 5: And a solid implementation track record
…And a solid implementation track record Solid credit metrics… ► Pro forma LTV as of 30th June: 39.2% (1) ► Pro forma ICR as of 30th June: 3.22x (2) ► Strong track record in fundraising (borrowing and equity) Investor Presentation … supported …Reflecting a prudent financial policy and risk tolerance
Slide 6: Contents
Parc du Millénaire, Paris 19th Contents 1 Company snapshot 2 The Silic transaction 3 Business profile 4 Pipeline & projects 5 Financing structure 6 Terms & Conditions of the transaction Appendices
Slide 7: The Silic transaction: the REIT for Grand Paris
The Silic transaction: the REIT for Grand Paris Compelling industrial logic ► Creation of France’s largest property investment company in the office segment and undisputable leader in business parks ► A leading market position in the Grand Paris initiative, with complementary sites ► A stronger comm
Slide 8: Combination with Silic: change in Icade's profile
Combination with Silic: change in Icade’s profile As of 30 June 2013 Icade (1) Silic Icade + Silic Non strategic Retail 6% Non-strategic Retail Offices Retail and Non strategic and shopping parks 8% 3% 9% shopping 7% centres 60% 89% centres 70% 7% 5% Offices, Investor Presentation Offices, France Fr
Slide 9: Targeted structure at the end of 2013
Targeted structure at the end of 2013 Completion of the public offer Merger (August 2013) Target: completion before year end 2013 Investor Presentation CDC Groupama CDC Groupama 75% 25% 75% 25% Others HoldCo Others HoldCo 48% 52% 47% 53% ICADE ICADE September 2013 93% SILIC 9
Slide 10: Contents
Contents 1 Company snapshot 2 Focus on Silic transaction 3 Business profile 4 Pipeline & projects 5 Financing structure 6 Terms & Conditions of the transaction Appendices
Slide 11: A balanced business model, based on complementary activities
A balanced business model, based on complementary activities Strategy focused on delivering recurring cash-flow from offices / business parks – campus portfolio located in the Grand Paris ► Mix between asset rotation of liquid single office assets and long-term investments in business parks ► Modern
Slide 12: A major player with a large commercial portfolio
A major player with a large commercial portfolio The combined entity is the fourth largest Continental European REIT by value (source: company reports) €m 30 000 25 000 20 000 15 000 10 000 5 000 0 Investor Presentation Successful repositioning on offices and business parks since 2007 (portfolio val
Slide 13: Strong visibility on revenues from solid rental base
Strong visibility on revenues from solid rental base Well spread lease maturity profile (as of Dec. 31, 2012) A defensive profile by focusing on long-term leases with strong tenants Investor Presentation High and stable occupancy rate ► Icade occupancy rate was 95.9% and a remaining committed lease
Slide 14: A diversified tenant base
A diversified tenant base Top 10 tenants (excluding healthcare and Icade) % of total Lease represent about 32% of total rents, while the largest Main tenants (1) rents maturity tenant is AXA at 9.4% 1 GIE AXA FRANCE 9.4% 3.0 Tenant portfolio well-rated corporates or public entities Investor Presenta
Slide 15: An undisputable market position in the Grand Paris initiative
An undisputable market position in the Grand Paris initiative Cergy Roissy / Paris Nord (Cergy) Parc Roissy-Paris Nord2 (Roissy) Investor Presentation St-Denis Nanterre Aubervilliers Rueil-Malmaison 19 Neuilly H2O (Rueil-Malmaison) Puteaux 8 Paris Centre commercial Le Millénaire (Aubervilliers) Boul
Slide 16: An excellent position with respect to the Grand Paris project
An excellent position with respect to the Grand Paris project Grand Paris Express is a project to modernise and develop the Paris region's transport system ► Around 175km of new metro lines and 57 new stations ► An investment of €30bn in several phases between now and 2030, with the first metro line
Slide 17: Strategic assets
Strategic assets Business parks/Campus & Offices A strong position with business parks/campus, a defensive asset class in today’s market conditions ► 4,263€m of Market Value of Assets Investor Presentation ► Ability to further improve earnings further by an active restructuring and modernizing polic
Slide 18: An offer satisfying the market's needs
An offer satisfying the market’s needs Business parks meet demand by combining flexibility Combination Icade / Silic business and cost control solutions with highest standards for park & offices €/sqm services and environmental requirements Rent (€/m2) ► Average rent of business parks (c. €200/sqm)
Slide 19: A strategic expansion in healthcare sector, with strong fundamentals
A strategic expansion in healthcare sector, with strong fundamentals Diversification into the healthcare sector as part of the group’s recurring cash-flow focused strategy ► Attractive yields, long-term leases (12-year commitments) ► Solid demand due to socio-demographic sectors and regulation ► Fra
Slide 20: Icade Santé
Icade Santé Robust key indicators 58 establishments - 9 partner operators Breakdown by operator as % Value excluding transfer taxes €1.84bn - €127m of annual rental of total portfolio value income - 6.9% yield excluding transfer taxes Average remaining lease period: 9 years 4 months C2S / Ramsay Cli
Slide 21: A cautiously managed diversification in property development
A cautiously managed diversification in property development A unique risk / return profile among the French developers, Housing reservations - Value (€m) A capacity to remain profitable even in the worst period of the cycle -1.5% ► For residential development: ► Demanding site and building criteria
Slide 22: A specific approach to the development market
A specific approach to the development market reflects Icade’s controlled exposure to market risk Residential Commercial & Public-sector Development work only launched after a sufficient Commercial property development : level of reservations has been achieved ► Limited exposure to "speculative" dev
Slide 23: Contents
Contents 1 Company snapshot 2 Focus on Silic transaction 3 Business profile 4 Pipeline & projects 5 Financing structure 6 Terms & Conditions of the transaction Appendices
Slide 24: Secured projects
Secured projects Veolia head office The Group will relocate its head office in 2016, bringing together more than 2,000 staff HQE® and BREEAM® Very Good Certification Investor Presentation France Ministry of Justice In 2015, France’s Ministry of Justice will relocate 1,600 central government staff, c
Slide 25: Projects under control
Projects under control Investor Presentation Millénaire 4 Îlot E Space: 24,800 m² Space: 28,300 m² Rent: €8.8m (€350 per m² of office space) Rent: €8.7m (€300 per m² of office space) Cost: €109m (including assistance measures and land Cost: €107m (including assistance measures and land cost) cost) E
Slide 26: Silic: projects under control
Silic: projects under control Investor Presentation Orly-Rungis Campus La Défense Space: 33,000 m² Space: 70,000 m² Rent: €7.6m (€230 per m² of office space) Rent: €29.8m (€450 per m² of office space) Cost: €95.9m (excluding land cost) Cost: €321m (excluding existing buildings) Completion: 26 months
Slide 27: Pipeline overview
Pipeline overview Paris / Plaine Commune Roissy / Paris Nord 1,020,000 m² 121,000m² St-Denis Investor Presentation Nanterre Aubervilliers Nanterre / Colombe La Défense 53,100 m² 89,700m² Paris Maisons-Alfort 900,000m² Orly - Rungis Orly Rungis 68,000m² Orly 12,000m² September 2013 Icade Silic Prospe
Slide 28: Contents
Contents 1 Company snapshot 2 Focus on Silic transaction 3 Business profile 4 Pipeline & projects 5 Financing structure 6 Terms & Conditions of the transaction Appendices
Slide 29: Key combined figures for 2012
Key combined figures for 2012 Property Property Services 2012 Investment Development Division Others Total Division Division Turnover €576m €1 071m €63m - €34m €1 676m Investor Presentation % 34% 64% 4% -2% 100% EBITDA €483m €69m €5m - €13m €545m % 89% 12% 1% -2% 100% Property Property Services H1 2
Slide 30: Solid key indicators
Solid key indicators Consolidated net current cash flow: €123m Icade Stand Alone ICADE EPRA triple net NAV: €78.9 per share Investor Presentation (1) NCCF restated for minority share holders of Icade Santé ► Consolidated net current cash flow rose by 9.3% due to firm ► EPRA triple-net NAV per share
Slide 31: Key financial metrics
Key financial metrics Net debt(1) Average cost of debt Icade Icade & Silic Icade Icade & Silic €m 4 352 4 227 4.8% 4.2% 3.9% 4.1% 3.9% 4.0% 2 459 2 691 2 076 2 292 Investor Presentation 2008 2009 2010 2011 2012 H1 2013 2008 2009 2010 2011 2012 H1 2013 Interest coverage ratio(2) Loan to value(3) Icad
Slide 32: Group funding overview
Group funding overview Drawn debt maturity schedule in €m (1) 1000 900 118 Silic Ornanes Silic Icade 800 314 700 239 600 Investor Presentation 500 114 Back up lines 209 400 127 €870m 300 12 635 575 200 463 326 364 45 295 Cash 100 131(2) 0 25 129 15 45 16 43 €324m S1 2013 S2 2013 (2) 2014 2015 2016 2
Slide 33: Regular access to diversified financing sources
Regular access to diversified financing sources Improved funding through innovative solutions Debt by type as of 30 June 2013 USPP Ornanes ► €1.55bn club deal structured in 3 tranches (a 3% Finance leases 2% medium term loan, a revolving credit and a forward 5% start credit) in 2012 to prepare for t
Slide 34: Financial policy
Financial policy LTV target c. 40% Back up lines (revolving credit facilities): maintenance of a strong liquidity Investor Presentation Maintain a conservative hedging policy Diversification of liquidity providers Extend maturity of the debt September 2013 34
Slide 35: Contents
Parc du Millénaire, Paris 19th Contents 1 Company snapshot 2 Focus on Silic transaction 3 Business profile 4 Pipeline & projects 5 Financing structure 6 Terms & Conditions of the transaction Appendices
Slide 36: Investor case
Investor case Solid business fundamentals ► A major player in the very liquid and resilient Paris office market ► A growing exposure to offices and business parks, matching with tenants’ demands and benefiting from steady occupier demand Investor Presentation ► A large, diversified property portfoli
Slide 37: Appendices
we bring life to the city Fonciére-développeur
Slide 38: An experienced management team
An experienced management team Serge Grzybowski, Chairman and CEO ► Chairman and Chief Executive Officer of Icade since 2007 and member of the Board of Silic since 2012. ► Chairman of France Green Building Council since October 2010. ► Previous positions include notably Chief Executive Officer of Ge
Slide 39: Board of Directors
Board of Directors Serge Grzybowski Maurice Sissoko Christian Bouvier Benoît Faure-Jarrosson Chairman and CEO The Caisse des Dépôts Director represented by Maurice Financial analyst and Sissoko, CDC managing Director for IT and member of the independent director board of Directors of the Caisse des
Slide 40: Icade's timeline
Icade’s timeline 1954: creation of Icade (formerly SCIC) ► Tackling post-war shortages ► Services group, mainly dedicated to building homes and public and quasi-public infrastructure Early 1990s: gradual move into real-estate development ► Expanding expertise from housing to office buildings Investo
Slide 41: Icade stand alone key figures
Icade stand alone key figures €m 30/06/12 30/06/13 % €m 31/12/12 30/06/13 Revenue 683 696 +1.8% Net debt 2,725 2,662 EBITDA 180 188 +4.5% Appraisal value 6,850 6,746 Investor Presentation Profit on disposals 60 39 -34.3% Loan To Value (LTV) 39.8% 39.5% Operating profit 154 119 -22.9% EPRA 4,190 4,07
Slide 42: A well diversified property portfolio
A well diversified property portfolio Portfolio Remaining Net yield value Financial IFRS rental committed (excluding excl. Rentable Rented occupancy income, lease transfer duties(1) space space rate annualised term duties) Figures at 30 June 2013 (€m) (m²) (m²) (%) (€m) (years) (%) Investor Presenta
Slide 43: An increasing modern and green portfolio
An increasing modern and green portfolio A modern and certified portfolio resulting in a limited amount of Key indicators future capex ► Modern buildings: assets less than 10 years old make up 60% of Indicator Icade + Silic the portfolio by value (Icade & Silic) ► HQE® certified properties in use ac
Slide 44: French commercial property market
French commercial property market Commercial property commitments Paris region in France by half-year period (1) between 2000 and H1 2013 (1) (€bn) € / m² / year, excluding VAT and charges 14.5 Investor Presentation Comparison of yields Vacancy rates (at end of period) (2) in the Paris region (1) 30
Slide 45: Property development: Illustrative timeline of process
Property development: Illustrative timeline of process French developers typically secure lands through options which limit the exposure at the beginning of the process The specificities attached to VEFA sales are also protective for developers Investor Presentation Preparation (land not acquired):
Slide 46: French residential property development market
French residential property development market Building starts and building permits granted 2012 saw a sharp fall in property development (all France) (1) activity, particularly because of falling demand for (number of housing units) new residential properties. Sales of new homes continued to declin
Slide 47: Contacts
Contacts Nathalie Palladitcheff ► CFO, Member of the executive committee, in charge of finance, legal matters and IT, and for the property services division ► +33 (0)1 41 57 72 60 ► [email protected] Investor Presentation Julien Goubault ► Deputy CFO, in charge of corporate, financing
Slide 48: Disclaimer
Disclaimer This document has been prepared by Icade solely for use for general investor presentations. Icade takes no responsibility for the use of these materials by any person for any other purposes. This document does not constitute or form part of, nor should it be construed as, any solicitation