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20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
20140724 - Half-year results 2014
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20140724 - Half-year results 2014

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  • 1. Half-year results 2014 July 24th, 2014 Future Veolia head office (Aubervilliers, 93)
  • 2. 2 This presentation is not an offer or a request for an offer to sell or exchange securities, or a recommendation to subscribe, buy or sell Icade securities. Distribution of this document may be limited in certain countries by legislation or regulations. As a result, any person who comes into possession of this document is required to familiarise themselves and comply with such restrictions. To the extent permitted by the applicable laws, Icade excludes all liability and makes no representation regarding the violation of any such restrictions by any person whatsoever. July 24th, 2014Half-year results 2014 Disclaimer
  • 3. 3 1. Resilient results 2. Pro-active management of liabilities 3. A unique property investment company 4. Useful diversification 5. Outlook Appendices July 24th, 2014Half-year results 2014 Contents
  • 4. 1. Resilient results Future Veolia head office (Aubervilliers, 93)
  • 5. 5 July 24th, 2014Half-year results 2014 Resilient results in a market that remains under pressure 1. RESILIENT RESULTS (€m) 30/06/2013 a 30/06/2014 Change Rental income 187 275 +47.0% EBITDA 158 228 +44.4% Profit on disposals 39 2 (93.9)% Operating profit 95 90 (4.8)% Net financial items -(54) (82) (51.0)% Profit from other activities 16 12 (27.8)% Net profit (Group share) 45 6 (87.4)% EPRA Earnings from Property Investment 82 130 +58.3% EPRA Earnings from Property Investment per share €1.58 €1.76 +11.1% Net current cash flow b 100 147 +46.4% Net current cash flow per share b €1.94 €1.99 +2.8% EPRA NNNAV c 5,704 5,419 (5.0)% EPRA NNNAV per share c €77.3 €73.2 (5.3)% LTV c 37.5% 40.3% +2.8pt a Restated in accordance with the application from 1 January 2014 of the new IFRS 11 standard relating to joint-venture partnerships b Adjusted for Icade Santé minority interests c Data at 31 December for 2013
  • 6. 66 187 275 +97 (10) +1 0 July 24th, 2014Half-year results 2014 Growth in rental income: +47% Acquisition of Silic: +€89m Other acquisitions (incl. clinics): +€8m Asset disposals: -€10m Indexation: +€1m (0.4% on average) Like-for-like growth: +0.2% Improvement in net rental rate: +3.0pt Net rental rate: 90.6% Effect of acquisition of Silic 1. RESILIENT RESULTS Growth in rental income Like-for-like +0.2% Change in the scope of consolidation +47% 30/06/2013 Acquisitions Disposals & restructuring Indexing Rental activity 30/06/2014
  • 7. 7 July 24th, 2014Half-year results 2014 Positioning in phase with demand In the most promising areas (inner Paris rim) In resilient areas (La Défense) Targeting major clients Veolia French Ministry of Justice KPMG Asset management teams with the ability to tackle vacancies Vacancy rates in line with, or below, the market average Pro-active marketing strategy applied to former Silic parks Alternative strategies to deal with structural vacancy › Disposals › Conversion to housing 1. RESILIENT RESULTS Key strengths to withstand market conditions Trends in takeup 102 32 143 191 62 180 H1 2013 H1 2014 Vacancy rate 12.0% 9.5% 17.6% 12.8% 7.5% Sources: MBE Conseil / Immostat La Défense & surrounding area Paris inner rimh North Paris outer rim +87% +97% +26% La Défense & surrounding area Paris inner rim North Paris outer rim South Market vacancy rate Icade vacancy rate (excl. EQHO) 14.7%
  • 8. 88 July 24th, 2014Half-year results 2014 Major contracts in 1st half 2014 1. RESILIENT RESULTS Notable commercial successes −94 leases −67,500m² −€14m in rental income Additions / losses +5 years €9m in rental income 41,400m²28 leases Renewals EQHO (La Défense, 92) 40,500m² KPMG Tour Initiale (La Défense, 92) 5,600m² Tarkett Saint-Quentin Fallavier Warehouse (38) 6,500m² Findis Millénaire 2 (Paris, 75) 2,500m² Agence Régionale de Santé Européen (Evry, 91) 2,500m² La Direccte +€28m in rental income +85,500m²+50 leases
  • 9. 9 July 24th, 2014Half-year results 2014 1. RESILIENT RESULTS Change in EPRA Earnings from Property Investment (€/share) 1.58 1.76 +0.01 +0.03 +0.09 +0.04 30/06/2013 Property Investment Operating property depreciation Financial result Income tax 30/06/2014 +11.1%
  • 10. 10 July 24th, 2014Half-year results 2014 1. RESILIENT RESULTS 1.94 1.99 +0.01 (0.16) (0.03) +0.02 +0.10 +0.11 30/06/2013 Property Investment Property Development Services Inter-division Financial result Income tax 30/06/2014 +2.8% a Adjusted for Icade Santé minority interests Change in net current cash flow a (€/share)
  • 11. 11 July 24th, 2014Half-year results 2014 Change in EPRA NNNAV (€/share) 1. RESILIENT RESULTS 77.3 (3.7) +0.1 +0.4 +0.1 (0.9) (0.1) 31/12/2013 Dividend 2014 Consolidated net income Change in unrealised gains on property assets Change in unrealised gains on property development and services Change in fair value of derivatives and fixed-rate debt Other 30/06/2014 73.2
  • 12. 12 July 24th, 2014Half-year results 2014 Change in yields 1. RESILIENT RESULTS a Impact on appraisal value of revision of capitalisation and discount rates applied by property appraisers b Impact on appraisal value of revised assumptions in building business plans (e.g. rent index, lease renegotiation, adjustment of market rental value, change in vacancy rate, change in construction plans and unbillable expenses, etc.) c Annualised net rent from rented space plus potential net rent from vacant space at market rental value, divided by appraisal value excluding transfer duties of rentable space d Icade Santé share Appraisal value (excluding transfer duties) on a like-for-like basis Average yield (excluding transfer duties) c 30/06/2014 Change in H1 of which discount rate effect a of which business plan effect b 30/06/2014 Change in H1 Offices, France 3,526 (1.5)% (1.2)% (0.3)% 7.1% +12bp Business parks 4,062 (0.4)% +0.8% (1.2)% 8.0% +14bp Total Strategic 7,588 (0.9)% (0.1)% (0.8)% 7.5% +13bp Healthcare d 1,114 (0.4)% +0.2% (0.6)% 6.9% +4bp Non-strategic 168 (4.2)% (0.6)% (3.6)% 10.2% +126bp Commercial property 8,870 (0.9)% (0.1)% (0.8)% 7.5% +11bp
  • 13. 2. Pro-active management of liabilities Vert & O (Aubervilliers, 93)
  • 14. 14 July 24th, 2014Half-year results 2014 Optimised debt 2. PRO-ACTIVE MANAGEMENT OF LIABILITIES Reduction in average costLonger average term 4.1% 3.8% 3.8% 3.8% 3.3% 30/06/2012 31/12/2012 30/06/2013 31/12/2013 30/06/2014 3.6 4.3 4.3 4.6 4.6 30/06/2012 31/12/2012 30/06/2013 31/12/2013 30/06/2014 Anticipated reduction by 40-60bp  a Loan to value = (Net debt including fair value of derivatives) / (Portfolio value excluding transfer taxes + Value of Service and Development companies) b Bank covenant limit c Restated in accordance with IFRS 11 d Interest Coverage Ratio = EBITDA (operating profit adjusted for depreciation) / Cost of net debt LTV in line with guidance a Solid ICR d 37.0% 36.7% 36.2% 37.5% c 40.3% 30/06/2012 31/12/2012 30/06/2013 31/12/2013 30/06/2014 4.5x 3.5x 3.3x 4.0x c 3.6x 30/06/2012 31/12/2012 30/06/2013 31/12/2013 30/06/2014 2.0 b 52.0% b
  • 15. 15 591 440 546 543 378 576 124 650 787 118 H2 2014 2015 2016 2017 2018 2019 2020 2021 2022 and beyond Debts Ornane July 24th, 2014Half-year results 2014 Secure and stable resources 2. PRO-ACTIVE MANAGEMENT OF LIABILITIES a Excluding debt relating to equity investments and bank overdraft facilities b Debts including bank loans, finance leases, mortgage loans, bonds and private placements Drawn debt maturity schedule a (€m) b Undrawn facilities €1,280m Cash €700m Hedging ratio 93% 
  • 16. 16 July 24th, 2014Half-year results 2014 Increasing diversification 2. PRO-ACTIVE MANAGEMENT OF LIABILITIES a Including €200m secured private placement 30/06/2014 Corporate loans and finance leases 50.0% 2010 Mortgage loans 12.9% Bonds 30.0% Private placements a 6.1% Other liabilities 1.0% Corporate loans and finance leases 83.3% Mortgage loans 14.2% Other liabilities 2.5% Total debt as at 30/06/2014 €4,792m
  • 17. 3. A unique property investment company Monet (Saint-Denis, 93)
  • 18. 18 July 24th, 2014Half-year results 2014 Generating recurring cash flow, secured over the long term 3. A UNIQUE PROPERTY INVESTMENT COMPANY OFFICES LIQUID ASSETS GENERATING SECURE REVENUE BUSINESS PARKS ASSETS WITH VERY SIGNIFICANT POTENTIAL FOR VALUE CREATION CASH FLOW RECURRENT AND SECURE OVER THE LONG TERM
  • 19. 19 July 24th, 2014Half-year results 2014 3. A UNIQUE PROPERTY INVESTMENT COMPANY Management tailored to each segment Business parks Substantial land reserves providing a reservoir of value creation for the long term: increase in commercial property, density and diversification Offices Maximising asset value through dynamic asset management and medium-term asset turnover Healthcare Leader in an attractive sector Non-strategic Non-strategic assets due to be sold gradually (housing, retail, warehouses)
  • 20. 20 July 24th, 2014Half-year results 2014 A refocused portfolio 3. A UNIQUE PROPERTY INVESTMENT COMPANY Total portfolio value at 30/06/2014 €9,044m (Group share) Alternative 12% Non-strategic 4% Paris Inner rim 22% La Défense & surrounding area 26%French provinces 1% Paris Outer rim 23% Other western crescent 12% Paris 16% Strategic 84% 20
  • 21. 2121 July 24th, 2014Half-year results 2014 Warehouses, office and retail property a shopping centre in Montpellier land at the Portes de Paris business park Offices, Germany 2 office buildings in Munich and Hamburg 2 parcels of land in Berlin Residential 48 individual units sold 3. A UNIQUE PROPERTY INVESTMENT COMPANY Active rotation of the portfolio MILLÉNAIRE 5&6 (Paris 19e) Acquisition of 50% of the offices owned by Klepierre €38m acquisition in January 2014013 MILLÉNAIRE 3 (Paris 19e) Completion of 32,000 m² expected in 2015, fully let to the Ministry of Justice €27m of investment in H1 2014 HEALTHCARE Acquisition of 3 clinics from the Médipôle Sud Santé Group for €71m Signature of agreement with Capio to acquire a further 7 clinics SISLEY (Saint-Denis, 93) Completion in April 2014 €11m of investment in H1 2014 Disposals: €153mInvestments: €257m
  • 22. TGV stations Existing Proposed Launch date of Grand Paris Express Airport Before 2030 Beyond 2030 PARIS - SAINT-DENIS - AUBERVILLIERS PARIS - LA DÉFENSE - NANTERRE ROISSY - PARIS NORD 2 PARIS – ORLY - RUNGIS Icade’s portfolio in the Paris region Business parksOffices July 24th, 2014Half-year results 2014 3. A UNIQUE PROPERTY INVESTMENT COMPANY A key positioning in Grand Paris 22
  • 23. July 24th, 2014Half-year results 2014 3. A UNIQUE PROPERTY INVESTMENT COMPANY A well-served portfolio 23 PARIS - SAINT-DENIS - AUBERVILLIERS PARIS - ORLY - RUNGIS
  • 24. 4. Useful diversification Le Garance (Paris 20e)
  • 25. July 24th, 2014Half-year results 2014 Working with France’s major cities 4. USEFUL DIVERSIFICATION 25 Le Garance (Paris 20e) Offices, creche and college Space: 30,000m2 Architects: Brigitte Métra et associés Lyon Confluence (îlot A3) Housing, offices and retail property Space: 26,400m² Architects: Herzog & de Meuron / Atelier AFAA Les Dock’s de Strasbourg Mixed commercial and residential development (45 eco-active homes), restaurants, spaces dedicated to education, art and culture Space: Net usable floor area of 11,600m² Architects: Georges Heint / Anne-Sophie Kehr
  • 26. 26 July 24th, 2014Half-year results 2014 Stability in profits from other activities 4. USEFUL DIVERSIFICATION Property Development Services Inter-division TOTAL (€m) 30/06/2013 a 30/06/2014 30/06/2013 30/06/2014 30/06/2013 a 30/06/2014 30/06/2013 30/06/2014 Revenues 425 465 23 21 (14) (10) 434 476 EBITDA 14 16 1 (1) (2) 0 13 15 EBITDA margin (EBITDA/revenue) 3.4% 3.5% 3.0% (5.1)% 15.0% 2.1% 3.0% 3.1% Operating profit 25 23 0 (1) 0 (3) 25 18 Net financial items 1 2 0 0 0 0 1 2 Tax (10) (9) 0 0 0 0 (10) (9) Net profit 16 15 0 (1) 0 (3) 16 12 Enterprise value b 484 529 37 39 n.a. n.a. 520 568 a Restated in accordance with the application from 1 January 2014 of the new IFRS 11 standard relating to joint-venture partnerships b Inclusive of enterprise value of subsidiaries accounted for on an equity basis
  • 27. 27 62 establishments / €2.0bn excl. transfer taxes 9 operators-partners In progress: +7 Capio Santé clinics July 24th, 2014Half-year results 2014 4. USEFUL DIVERSIFICATION Icade Santé: controlled risks Breakdown by operator (% of total portfolio value) 26.9% Médi-Partenaires + Médipôle Sud Santé 29.6% Générale de Santé + Ramsay Vedici 28.7% 6 regional groups 14.8% a MSO: Medicine, surgery, obstetrics b FRC: Follow-up and rehabilitation care c MHE: Mental health establishment 49 MSO clinicsa 13 FRC b and MHE c 7 clinics currently being acquired (Capio)
  • 28. 28 July 24th, 2014Half-year results 2014 Diversification generating dynamic and secure cash flow Long leases: residual maturity as at 30 June 2014 of nearly 9 years Triple net indexed rents Net current cash flow: +12% Attractive yields Average yield of 6.9% a Multiple options for financing development Further capital increases Partnership Initial Public Offering 4. USEFUL DIVERSIFICATION Icade Santé: a clear leader a Annualised net rent from rented space plus potential net rent from vacant space at market rental value, divided by appraisal value excluding transfer duties of rentable space Source: Jones Lang LaSalle Expertises Recurrent annualised rental income 19 45 56 86 114 130 135 536 661 829 1,317 1,725 1,887 1,971 2008 2009 2010 2011 2012 2013 H1 2014 Portfolio value (€m) 30/06/2013 31/12/2013 30/06/2014 Net rental income 58.9 122.4 64.8 EBITDA 55.4 115.0 60.9 Operating profit 28.9 60.5 32.7 Net current cash flow 44.6 92.7 49.9 Asset value 1,844.9 1,886.8 1,971.4 Net debt 684.8 676.1 781.2 NAV 1,151.0 1,205.7 1,182.6 LTV 37.2% 35.9% 39.6%
  • 29. 5. Outlook Nanterre Préfecture (92)
  • 30. 30 €435m of investment 141,000 m², of which 90% pre-let July 24th, 2014Half-year results 2014 5. OUTLOOK A value-creating secured pipeline 269 118 49 2014 2015 2016 2014 2015 2016 BRAHMS (Colombes, 92) 8,700m² Main tenant: Alcatel Rent: €2.6m Lease term: 9 years Yield: 8.2% SISLEY (Saint-Denis, 93) 18,700m² Main tenant: Siemens Rent: €6.4m Lease term: 9 years Yield: 6.8% QUÉBEC (Rungis, 94) 12,000m² Rent: €3.4m Yield: 7.2% MONET (Saint-Denis, 93) 20,600m² Main tenant: SNCF Rent: €6.3m Lease term: 9 years Yield: 7.1% MILLÉNAIRE 3 (Paris 19e) 32,000m² Main tenant: Ministry of Justice Rent: €11.6m Lease term: 12 years Yield: 7.7% VEOLIA (Aubervilliers, 93) 45,000m² Main tenant: Veolia Rent: €16.5m Lease term: 9 years Yield: 7.4%
  • 31. 31 July 24th, 2014Half-year results 2014 An additional pipeline primed for economic recovery 5. OUTLOOK a Total amount of works excluding land costs 6 projects in hand 186,000 m² €680m a of investment Project launches seeing satisfactory pre-marketing conditions ÎLOT E (Saint-Denis, 93) 28,300m² Rent: €9.1m Completion: 30 months after launch MILLÉNAIRE 4 (Paris 19e) 24,600m² Rent: €8.7m Completion: 24 months after launch CAMPUS DÉFENSE (Nanterre, 92) 79,200m² Rent: €29.1m Completion: 36 months after launch OTTAWA (Rungis, 94) 14,000m² Rent: €3.9m Completion: 24 months after launch VANCOUVER (Rungis, 94) 7,000m² Rent: €1.6m Completion: 17 months after launch VAUBAN (Rungis, 94) 33,000m² Rent: €7.6m Completion: 34 months after launch
  • 32. 32 €3.5 €4.0 €5.2 (€0.1) +€0.3 +€0.1 +€0.2 +€0.8 (€0.1) +€0.5 Estimated EPRA Earnings 31/12/2014 Disposals under contract Projects launched and pre-let Clinics (acquisitions under contract) Additional secured rents (Tour EQHO, Tour Initiale) Secured EPRA Earnings Rental optimisation Disposal of non-strategic assets Non-committed projects Potential EPRA Earnings July 24th, 2014Half-year results 2014 Potential change in EPRA Earnings from Property Investment over 5 years 5. OUTLOOK a b a Corresponds to potential rental income from vacant space as at 30 June 2014 plus vacancy cost (recovery of expenses) b Corresponds to the following projects: Îlot E, Millénaire 4, Québec, Campus Défense, Vauban, Ottawa, Vancouver € per share
  • 33. 33 July 24th, 2014Half-year results 2014 5. OUTLOOK Priority: Energy and carbon footprints Signature of the Pelletier Charter for Sustainable Building and participation in market reporting Introduction of a methodology for monitoring regulated green leases and extension to certified buildings Systematic environmental certification of all new buildings: at least HQE Excellent Continuing to build Icade’s expertise in renovation of commercial property targeting the highest levels of certification and labelling Reduction in consumption in the major commercial buildings owned by Icade through to 2020 Reduction in greenhouse gases linked to operational energy use on the basis of 2011 emissions CONTINUATION OF ENVIRONMENTAL CERTIFICATION PROCESS 88,000 187,000 218,000 238,000 388,497 430,497 484,263 583,396 2009 2010 2011 2012 2013 2014e 2015e 2016e Floor space of HQE certified assets (m2) EQHO 80,000 m² START 30,000 m² BEAUVAISIS a 14,000 m² and a First BBC Rénovation certified building in Paris and LONG-TERM PUBLIC COMMITMENTS 2% per m2/year 18% relative to 2011 3% /year 1/4of emissions by 2020  STRONG MANAGEMENT ACTION TO REDUCE ENERGY & CARBON FOOTPRINTS IN THE SHORT TERM
  • 34. 34 5. OUTLOOK Priority: sustainable city July 24th, 2014Half-year results 2014 Veolia Environnement HQ, is one of the five pilot companies for the testing and development of the proposed “Biodivercity” label Experimental research with Ecole Normale Supérieure into urban green roofs Progress plan based on 4 key challenges relating to the CDC Energy and Ecology Transition programme The diversity of Icade’s residential clients shows a very balanced view of the city. These figures confirm its position as a unique operator in France promoting sustainable cities and social diversity CONNECTED BUILDINGS Production of a sustainability assessment tool for urban projects looking at planning/mobility integration Creation of an information platform for business park accessibility Car-sharing and electric vehicles in residential projects Arbitrage of development and land projects using a connectivity indicator GREATER FUNCTIONAL AND SOCIAL MIXITY COMMITMENT TO BIODIVERSITY ECO-MOBILITE effinergie Type of client 2013 Tax-efficient investment 21% Social housing 25% First-time buyers 30% Second-time buyers 8% Investment without tax breaks 12% Other 4% Total 100%
  • 35. 35 Maintenance of 2014 guidance of consolidation in EPRA Earnings from Property Investment per share, thanks to: increased marketing efforts across the entire portfolio in order to bring the financial occupancy rate above 90% the development of major projects at business parks under secure conditions allowing for improvement in cash flow control of operating expenses, primarily as a result of cost synergies from the merger with Silic maintaining the LTV ratio at around 40% and further reduction in the average cost of debt by means of increased financial disintermediation As of 2015, Icade should see significant improvement in EPRA Earnings from Property Investment thanks to the full letting of EQHO and the completion of secure development projects (Monet and Millénaire 3 due to be completed in 2015, Veolia in 2016) July 24th, 2014Half-year results 2014 5. OUTLOOK Guidance
  • 36. Q&A
  • 37. Appendices Les Closbilles (Cergy, 95)
  • 38. 38 July 24th, 2014Half-year results 2014 Calculation of EPRA Earnings from Property Investment APPENDICES (€m) 30/06/2013 30/06/2014 Change Net profit 52 16 (70)% Profit from other activities (16) (12) (28)% Profit from property income (a) 36 4 (89)% Change in value of investment property and depreciation (96) (129) +35% Gains on disposals of fixed assets 36 (4) (111)% Tax on profits relating to disposals and impairment losses 1 0 NA Change in fair value of financial instruments 2 (10) NA Adjustments for affiliates (6) (3) (47)% Minority interests (Icade Santé) 17 22 +25% Total restatements (b) (46) (126) +174% EPRA Earnings from Property Investment (a − b) 82 130 +58% EPRA Earnings from Property Investment (€/share) €1.58 €1.76 +1%
  • 39. 39 July 24th, 2014Half-year results 2014 EPRA Net Asset Value APPENDICES (Group share, in €m) 30/06/2013 31/12/2013 30/06/2014 Change over 6 months (%) Change over one year (%) EPRA NAV 4,226 5,822 5,610 (3.6)% +32.7% EPRA NNNAV 4,079 5,703 5,419 (5.0)% +32.8% Number of shares, fully diluted (million) 51.7 73.8 74.0 EPRA NAV per share €81.7 €78.9 €75.8 (3.9)% (7.3)% EPRA NNNAV per share €78.9 €77.3 €73.2 (5.3)% (7.2)%
  • 40. 40 July 24th, 2014Half-year results 2014 EPRA NNNAV APPENDICES (€m) (12) (15) (16) 2,547 4,168 3,850 1,500 1,492 1,521 44 58 64 30/06/13 31/12/13 30/06/14 Unrealised gains on property assets net of transfer duties Unrealised gains on Property Development / Services Shareholders’ equity (+FMV of debt and impact of dilution) Tax on property assets and companies 5,703 or €77.3 per share 4,079 or €78.9 per share 5,419 or €73.2 per share
  • 41. 41 July 24th, 2014Half-year results 2014 Income statement by asset type a APPENDICES Strategic assets Alternative assets Non-strategic assets Other (Head office costs, intra-group items) TOTAL (€m, share of total) June 2013 June 2014 June 2013 June 2014 June 2013 June 2014 June 2013 June 2014 June 2013 June 2014 Rental income 103 193 60 66 27 19 (3) (3) 187 275 Net rental income 90 174 59 65 18 13 (3) (2) 164 249 Rental margin 87.0% 90.0% 98.8% 98.9% 66.9% 65.9% NA NA 87.6% 90.6% EBITDA 84 161 55 61 17 11 2 (4) 158 228 Operating profit 17 61 29 33 48 3 0 (6) 95 90 a Restated in accordance with the application from 1 January 2014 of the new IFRS 11 standard relating to joint-venture partnerships
  • 42. 42 July 24th, 2014Half-year results 2014 Portfolio indicators APPENDICES Figures at 30 June 2014 a Portfolio value excluding transfer duties (€m) Rentable space (m²) EPRA vacancy rate (%) IFRS rental income, annualised (€m) Remaining committed lease term (years) Offices, France 3,526 592,609 14.9% b 180.3 4.6 Business parks 4,062 1,468,789 13.4% 222.3 3.1 Total Strategic 7,588 2,061,398 14.1% 402.6 3.8 Alternative a 1,114 507,867 0.0% 76.4 8.8 Non-strategic 168 320,176 4.0% 15.1 5.9 COMMERCIAL PROPERTY 8,870 2,889,440 11.9% 494.2 4.6 a Icade Santé share b Adjusted for lettings at Tour EQHO and Tour Initiale, the EPRA vacancy rate is 7.5% for offices in France
  • 43. 43 July 24th, 2014Half-year results 2014 Yield a APPENDICES a Annualised net rent from rented space plus potential net rent from vacant space at market rental value, divided by appraisal value excluding transfer duties of rentable space 6.8% 7.7% 6.9% 8.0% 7.3% 6.8% 7.3% 6.8% 8.2% 7.1% 6.7% 7.6% 6.9% 9.0% 7.3% 6.8% 7.6% 6.9% 8.1% 7.2% 6.9% 7.9% 6.9% 8.9% 7.4% 7.1% 8.0% 6.9% 10.2% 7.5% Offices, France Business parks Healthcare Non-strategic commercial TOTAL COMMERCIAL PROPERTY 31/12/2010 31/12/2011 31/12/2012 30/06/2013 31/12/2013 30/06/2014
  • 44. 44 July 24th, 2014Half-year results 2014 French commercial property market APPENDICES a Source: CBRE b Source: Banque de France 0 5 10 15 20 25 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 H1 H2 15.5 10.7 0% 1% 2% 3% 4% 5% 6% 7% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2014 Yield on "prime" Paris CBD offices OAT TEC 10 4.00% 0.21% 1.63% €699 €467 €294 200 € 400 € 600 € 800 € 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 H1 2014 Prime Paris Centre West Prime La Défense Average Greater Paris Commercial property commitments in France by half-year period a (€bn) Rental values in the Paris region between 2000 and H1 2013 a € / m² / year, excluding VAT and charges Comparison of yields (at end of period) b Vacancy rates in the Paris region a 30/06/2013 30/06/2014 West Central Paris 5.6% 5.6% South Paris 3.3% 3.9% Northeast Paris 3.6% 4.1% Paris average 4.5% 4.8% La Défense 7.6% 12.1% Western Crescent 11.5% 11.8% Inner rim, North 10.3% 9.4% Inner rim, East 7.5% 7.6% Inner rim, South 7.9% 9.4% Outer rim 5.5% 5.4% Total Paris region 6.7% 7.0%
  • 45. 45 July 24th, 2014Half-year results 2014 Residential Property Development market APPENDICES 459 512 460 555 435 697 463 359 458 326 355 H1 2009 H2 2009 H1 2010 H2 2010 H1 2011 H2 2011 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 650 811 1,028 1,082 1,012 909 31/12/2009 31/12/2010 31/12/2011 31/12/2012 31/12/2013 30/06/2014 9.2% 13.4% 12.7% 7.8% 6.6% 6.1% 31/12/2009 31/12/2010 31/12/2011 31/12/2012 31/12/2013 30/06/2014 40 33 16 21 21 22 31/12/2009 31/12/2010 31/12/2011 31/12/2012 31/12/2013 30/06/2014 (22.4)% (10.1)% (7.6)%+6.2% Most residential developments have NF Logement and BBC certification Housing reservations - Value (€m) Backlog (€m) Disposal rate of marketable stockUnsold homes value (€m)

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