2014 Presentation of HALF-YEAR RESULTS 31 July 2014 AFFINE H1 - PowerPoint PPT Presentation

2014 Presentation of HALF-YEAR RESULTS 31 July 2014

AFFINE H1 2014 KEY TAKEAWAYS • EPRA EARNINGS UP (+) Increase in gross rental income resulting from 100% integration of Bordeaux complex and logistics developments (-) Negative contribution from Banimmo • LTV OF 48.3 % AND COST OF DEBT DOWN TO 3.1 % • CHANGE IN PORTFOLIO Hike in occupancy rate (91.5 %) €10.9m in improvements and developments €12.2m disposals New investments currently in advanced negotiations • EPRA NAV PER SHARE OF €23.7 (-) Net earnings of -€6.4m due to fair value adjustments (-) Dividend distribution (€8.1m) 2 2014 Half-year Results

INVESTMENTS AND DISPOSALS 3 2014 Half-year Results

INVESTMENTS AND DISPOSALS €11M OF INVESTMENTS AND €12M OF DISPOSALS €11m: Development & Refurbishment Gennevilliers Troyes (Concerto) Bagnolet St Cyr en Val €12m: Disposals Evry: Bron: €10.4m Montpellier: Saint Quentin €0.3m €0.2m Fallavier: €1.4m 4 2014 Half-year Results

INVESTMENTS AND DISPOSALS LYON – BD TCHÉCOSLOVAQUES • Refurbishment of 4 900,sqm offices space 2 buildings and parking lot for 122 cars Located on the extension of the Boulevard Vivier Merle, between the La Part-Dieu and Gerland districts Easy and improved service and enhanced attractiveness 2 métro stations, numerous bus routes Tram under progress TGV station La Part-Dieu Marketing under process Building 5 2014 Half-year Results

INVESTMENTS AND DISPOSALS RÉAUMUR, A PARTIAL RECONVERSION • 1,656 sqm totally refurbished Office 741 sqm of offices 606 sqm turned into residential 309 sqm of retails Residential • Nearby the Marais district Located at 100 m of the Arts et Métiers metro station • Works budget estimated at €4m • Completed by December 2014 • Marketed or received offer: c. 70% 6 2014 Half-year Results

INVESTMENTS AND DISPOSALS SAINT CYR EN VAL – 2 ND PHASE – REFURBISHMENT BUILDING B • A 9,600 sqm warehouse 4 cells and 45 doors Temperature-controlled building (Pharmaceutical products) • Air conditioning système renovation 6 air con devices replaced on the roof 7 Résultats Annuels 2013

PERFORMANCE OF THE PORTFOLIO 8 2014 Half-year Results

PERFORMANCE OF THE PORTFOLIO HEADLINE RENTS: -1.3% LIKE-FOR-LIKE • Change in headline rents annualized (€m) 46.2 (0.7) (1.1) 0.8 44.5 (0.6) 31/12/2013 Refurbishment Disposal Like-for-like Acquisition 30/06/2014 Total headline rents change: -3.6% 9 2014 Half-year Results

PERFORMANCE OF THE PORTFOLIO 1.8% DECREASE OF THE PORTFOLIO VALUE • Change in fair value excluding TT (€m) 594 (12) +8 583 +0 (9) +2 31/12/13 Disposal Capital gain Like-for-like Capex Dev. Acq. 30/06/14 • Breakdown of the 1.9% decrease in fair value on a like-for-like basis Market rent effect (ERV): -1.0% Cap rate effect: +0.0% Miscellaneous: -1.0% (works, reversion, transfer taxes change …) 10 2014 Half-year Results

PERFORMANCE OF THE PORTFOLIO RISE OF OCCUPANCY RATE • Financial occupancy rates (EPRA) 94.0% 92.2% 91.5% 90.9% 89.0% 87.8% 87.7% 2008 2009 2010 2011 2012 2013 H1 2014 Impact Impact Baudry JdQ -1.2 pt +0.8 pt 11 2014 Half-year Results

PERFORMANCE OF THE PORTFOLIO LEASE AVERAGE DURATION 5.5 YEARS • Schedule in rents (€m) according to lease duration 50 40 30 20 10 0 31/12/13 31/12/14 31/12/15 31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 End of lease Fixed term Average time up to next break option: 3.2 years Average time up to lease expiry: 5.5 years 9 new leases (19,800 sqm ; €0.9m) 19 renegociated leases (27,400 sqm ; €2.1m) 7 terminated leases (4,800 sqm ; €0.7m) 12 2014 Half-year Results

PERFORMANCE OF THE PORTFOLIO PORTFOLIO YIELD • Return by asset type Portfolio Headline Potential Split in value yield yield Paris (Offices) 16.9% 5.6% 5.6% Offices (other regions) 35.4% 7.6% 8.5% Retail 22.1% 6.6% 7.9% Warehouses & Industrials 25.4% 9.0% 9.2% Total 100.0% 7.5% 8.1% 13 2014 Half-year Results

SUBSIDIARIES BANIMMO More details on www.banimmo.be • Repositionning property company Portfolio: 19 buildings; Gross rental income: €4.9m; value: €355m. • Key events Opening of Bagatelle 5,300 sqm shopping mall in Suresnes Acquisition of a plot of land allowing the development of 15,000 sqm offices in Namur (Belgium). Development by Banimmo of 8,000 sqm of offices for BNP Paribas Fortis in Charleroi (Belgium) Disposal by Banimmo of 6,500 sqm of offices (€23.2m) under construction close to Brussels (Belgium) and which will be let to the Marsh & McLennan group • H1 2014 Results Rental income €4.9m vs €4.7m Operational result (excl. associates): €2.3m vs €3.1m Significant negative accounting adjustments on the City Mall participation (-€5.7m). Net current result (excl. FV & City Mall): -€0.7m (NR: -€7.5m) 14 2014 Half-year Results

SUBSIDIARIES DEVELOPMENT • Concerto European Developer Delivery of a logistics platform in Aube for Devanlay (19,000 sqm) Signature with the Petit Bateau group for the development of a 43,500 sqm logistics platform Filing of building permits for the areas of Cambrai (54,000 sqm) Honfleur (117 000,sqm) Project under construction (10,700 sqm) for delivery in Sant Feliu (Spain) • Promaffine Completion of 2 residential joint development in Nanterre and Marseilles 15 2014 Half-year Results

CONSOLIDATED ACCOUNTS 16 2014 Half-year Results

CONSOLIDATED ACCOUNTS CONSOLIDATED EARNINGS (€m) 30/06/13 31/12/13 30/06/14 Gross rental income 19.5 40.2 22.5 Net rental income 17.1 34.8 20.7 Other income 1.5 1.9 0.5 Corporate expenses (5.2) (10.0) (5.1) (1) Current EBITDA 13.4 26.7 16.0 Current operating profit 13.3 26.5 16.0 Other income and expenses (0.4) 0.7 0.1 Net financial cost (5.6) (11.5) (5.7) Taxes (0.3) (0.5) (0.2) Associates (0.2) 1.9 (2.2) Miscellaneous 0.1 (0.1) (0.1) Net current profit 6.8 17.0 7.9 EPRA Earnings (Net current profit – Gs) 6.8 17.0 7.9 Value adjustments of properties & profit on disposals (10.5) (21.8) (9.6) Fair value adjustments of hedging instr. 3.7 4.0 (2.3) Adjustements for associates 0.2 (7.2) (1.9) Others (0.4) (0.9) (0.4) Net non-current profit – Gs (7.0) (25.8) (14.3) Net profit – group share (0.2) (8.8) (6.4) (1) Current EBITDA represents the current operating profit excluding current depreciation and amortisation costs. This amount excludes the depreciation on Sant Feliu and appears under the other incomes and expenses. (2) Operating profit after value adjustments. 17 2014 Half-year Results

CONSOLIDATED ACCOUNTS NET ASSET VALUE CHANGE (€m) 30/06/13 31/12/13 30/06/14 Shareholders’ equity (before allocation) 337.2 326.2 310.3 PSL adjustment (73.2) (73.2) (73.2) Fair value adjustments to hedging instr. 7.8 7.2 10.0 Net deferred tax (1.7) (4.1) (4.3) EPRA NAV (excluding transfer tax) 270.1 256.0 242.8 EPRA NAV (including transfer tax) 304.7 290.5 278.7 EPRA NAV (excluding transfer tax) per share (€) 26.4 25.0 23.7 (€m) Based on the Net Asset 256.0 (8.1) Value of Banimmo (9.4) +7.9 (1.3) 242.8 (2.3) Excluding PSL (TSDI) Others: interest on convertibles and 31/12/2013 Dividends paid FV properties FV FI EPRA earnings Others 30/06/2014 PSLConvertibles,etc NAV per share after €25.0 €23.7 dilution per share per share fromconvertibles 18 2014 Half-year Results

FINANCING 19 2014 Half-year Results

FINANCING A CONTROLLED LTV FOR A RESUMPTION OF INVESTMENTS • LTV of 48.3% (€m) 881 900 120% 821 803 800 699 682 682 676 100% 700 600 80% 484 500 423 Value 407 60% 55.0% 51.5% 327 329 400 310 308 Loan 48.3% 46.8% 300 50.8% 45.5% 40% 45.7% LTV 200 20% 100 0 0% 2009 2010 2011 2012 2013 H1 H1 2013 2013 Average financing cost of 2.0%, or 3.1% hedging included (vs 1.9% & 3.4%) Floating interest rate risk hedged Implementation of €15m of new swaps and €60m of new caps in June 20 2014 Half-year Results

FINANCING FAVOURABLE CREDIT ACCESS • Banks relationship diversified 6 main banks Average duration of 5.5 years Financing asset by asset with mortgages Amortizable over middle term • Financing in H1 2014 Mortgage loan: Refinancing Lyon Dauphiné (€6m) Development credit: Concerto financing (€4m drawn) • Refinancing of the 2015 debt service underway 21 2014 Half-year Results

FINANCING A SMOOTHED DEBT PROFILE • Amortisation of debt (€m) 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Contractual amortisation Repayment at maturity Early repayment A financing policy aiming at smoothing the amortisation Repayment: around €30m p.a. on average Short term available credit lines of €19m 22 2014 Half-year Results

STRATEGY & OUTLOOKS 23 2014 Half-year Results