PRESENTATION BE-REIT ASSOCIATION
OUTLINE Introduction History EPRA Legal General figures Appendices framework 2
OUTLINE Introduction History EPRA Legal General figures Appendices framework 3
INTRODUCTION – WHAT IS A REIT? GVVs 1 /SIRs 2 are Real Estate Investment Trusts (REITs) that own, operate and finance income-producing real estate across a range of property sectors (offices, logistics, retail, healthcare, residential, …). Purpose: Give any shareholder the opportunity to own a diversified portfolio of real estate Professional long-term management of property portfolio Provide recurrent income to shareholders in the form of dividends Flexibility and liquidity guaranteed through stock-based trade Attention for Corporate Social Responsibility with special focus on sustainability 1 Gereglementeerde Vastgoedvennootschap 4 2 Société Immobilière Réglementée
INTRODUCTION – THE BE-REIT ASSOCIATION The BE-REIT Association is a professional association that represents and promotes the interests of the Belgian REIT sector towards various stakeholders. • The Association provides a forum for developing and supporting all global initiatives of importance to the BE-REIT sector: • Collection of knowledge and relevant industry information as well as training • Interaction on sector-level with public authorities, institutions, professional associations and other players of the real estate sector at the local, regional, federal and international levels • Sharing of information on the sector • Established at 10 December 2015 as a non-profit organization under Belgian law (asbl/vzw) • Its members all have the status of Regulated Real Estate Company (RREC/GVV/SIR) 5
INTRODUCTION – BE-REIT ASSOCIATION: MEMBERS 6
INTRODUCTION – SOME FACTS • The Belgian REIT regime is one of the first that was established in the world (1995) • All 17 Belgian GVVs/SIRs are member of the BE-REIT Association • Strong growth and internationalisation of the assets base • BE-REITs represented 5% of the Belgian stock market at 31/03/2019 • 2018 was a strong year for Belgian Real Estate Investment Trusts (REITs) with an average total return of approx. 8.8%, outperforming the EPRA/NAREIT Europe developed index (EPRA, cf. infra) 7
OUTLINE Introduction History EPRA Legal General figures Appendices framework 8
HISTORY - MILESTONES Royal Decree of 7 December Origin in U.S.: 2010: U.S. Federal Law of • Introduction of regulatory framework 14/09/1960: extending fiscal Foundation of BE-REIT Law of 2 May 2019: right to for institutional SICAFIs issue equity through ABB 3 transparancy to Real Estate Association at 10 December • Allow public SICAFIs to realise specific Investment Trusts 2015 (within 10% limit) projects with third parties 1995 2014 2017 1960 2010 2015 2019 Royal Decree of 10 April 1995: Creation of Operational REIT Law of 22 October 2017: Regulatory framework in place (GVV/SIR) status: • Extension of authorized assets and for Vastgoedbevak/SICAFI more flexibility for partnerships • Law of 12 May 2014 • Creation of new RREC category: the • Royal Decree of 13 July 2014 Social RREC/GVV/SIR 3 Accelerated Bookbuilding 9
OUTLINE Introduction History EPRA Legal General figures Appendices framework 10
EPRA 4 AT 31/12/2018 • EPRA Best Practices set a standard that improved transparancy across the real estate sector • 15 BE-REITs report in accordance with EPRA Financial Best Practices Recommendations • Belgian REITs have been outperforming the EPRA/NAREIT Developed Europe Index with higher returns and lower volatility Free Float Market Cap (%) Div Yld Total Rtn (%) Total Rtn (%) Total Rtn (%) Total Rtn (%) Total Rtn (%) 10 Yrs Vlty 36M Vlty 31/12/2018 Weight (%) -20Yrs -10Yrs -5Yrs -3Yrs -1Yrs (%) (%) FTSE EPRA/NAREIT Developed Europe 100,00 4,33 8,02 11,90 8,35 -0,01 -7,70 13,89 9,69 Index FTSE EPRA/NAREIT Belgium Index 4,67 5,07 7,25 9,92 12,23 9,49 8,80 10,50 7,97 11 4 Non-profit organisation that represents, promotes and develops the European public real estate sector (visit www.epra.com for more information)
EPRA AT 31/12/2018 EUROPE BELGIUM GDP GDP € 16.715 ,411 Bln. € 477,410 Bln. Commercial Real Commercial Real Estate: Estate: € 7.228,945 Bln. € 201,020 Bln. Listed Real Estate: Listed Real Estate: € 399,778 Bln. € 20,070 Bln. EPRA Index: EPRA Index: € 9,765 Bln. € 210,321 Bln. 12
OUTLINE Introduction History EPRA Legal General figures Appendices framework 13
LEGAL FRAMEWORK (RREC/GVV/SIR) Supervision by the Belgian regulator (FSMA) • At least 30% of the shares must be trading on a Belgian regulated market (Euronext Brussels) • Statutory maximum gearing ratio of 65% of its assets • Obligation to pay out at least 80% of its adjusted result • Strict rules regarding conflicts of interest • Quarterly valuation of the fair value of the real estate by an independent property expert • Diversification of its real estate in such a manner that the risks are spread in an appropriate way, for each type of real estate, for each geographical area, and for each category of user or tenant • A transaction must not result in more than 20% of its consolidated assets constituting one single real estate complex • Specific rules regarding internal control structures 14
OUTLINE Introduction History EPRA Legal General figures Appendices framework 15
AGGREGATE GENERAL NUMBERS AT 31/12/2018 Total market capitalisation € 13.058 million Fair value of total property portfolio € 20.593 million Total number of employees ca 630 16
GENERAL FIGURES – MARKET CAPITALISATION Market capitalization at 31/12/2018 (% of sector) € million Aedifica 1451 Aedifica Ascencio 329 4% Ascencio 11% Befimmo 1242 5% 1% Befimmo Care Property Invest 390 3% Care Property Invest Cofinimmo 2421 Cofinimmo Home Invest Belgium 302 Home Invest Belgium 10% Immo Moury 19 20% Immo Moury Intervest Offices & Warehouses 500 Intervest Offices & Warehouses Leasinvest RE 518 3% Leasinvest RE Montea 766 Montea Qrf 78 Qrf Retail Estates 880 2% Retail Estates Vastned Retail Belgium 208 Vastned Retail Belgium WDP 2657 7% 19% WDP WEB 155 1% WEB Wereldhave Belgium 620 6% Wereldhave Belgium 2% Xior 523 4% 4% Xior TOTAL 13058 0% 17
GENERAL FIGURES – PROPERTY PORTFOLIO Fair value of property portfolio at 31/12/2018 (% of sector) € million Aedifica 1964 Ascencio 624 Aedifica 4% Befimmo 2655 5% 13% Ascencio 1% Care Property Invest 521 Befimmo Cofinimmo 3728 Care Property Invest 3% Home Invest Belgium 544 Cofinimmo Immo Moury (31/03/2019) 23 17% Home Invest Belgium Intervest Offices & Immo Moury Warehouses 867 13% Intervest Offices & Warehouses Leasinvest RE 1037 Leasinvest RE Montea 912 2% Qrf 272 Montea Retail Estates Qrf 2% 4% (31/03/2019) 1530 Retail Estates 1% Vastned Retail Belgium 372 Vastned Retail Belgium WDP 3450 5% WDP WEB 267 18% WEB 5% Wereldhave Belgium 957 Wereldhave Belgium 4% 0% Xior 872 Xior 3% TOTAL 20593 18
GENERAL FIGURES – PROPERTY PORTFOLIO GEOGRAPHIC BREAKDOWN OF THE PORTFOLIO 5 (%) AT 31/12/2018 6 Belgium The Netherlands France Luxembourg Germany Other 5 5 5 11 11 10 10 13 16 18 18 23 1 4 14 34 15 10 35 69 55 48 100 100 100 100 95 95 90 90 82 77 67 66 61 49 35 35 31 5 According to fair value except for Care property Invest (breakdown based on number of residential units) 19 6 Except Ascencio (30/09/2018), Immo Moury (31/03/2019) and Retail Estates (31/03/2019)
GENERAL FIGURES – PROPERTY PORTFOLIO SECTORAL BREAKDOWN OF THE PORTFOLIO (%) AT 31/12/2018 7 Offices Residential Healthcare Logistics Retail Student rooms Other 1 1 2 3 4 4 10 16 15 43 16 60 70 17 50 90 87 6 85 99 100 100 100 100 100 100 97 88 26 51 40 34 19 25 11 11 10 7 3 7 Except Ascencio (30/09/2018), Immo Moury (31/03/2019) and Retail Estates (31/03/2019) 20
GENERAL FIGURES – PROPERTY PORTFOLIO Occupancy rate at 31/12/2018 8 (%) Aedifica 99,0 Ascencio 97,3 Befimmo 94,5 Care Property Invest 100,0 Cofinimmo 95,8 Home Invest Belgium 96,4 Immo Moury 95,5 Intervest Offices & Warehouses 93,0 Leasinvest RE 94,3 Montea 99,1 Qrf 94,8 Retail Estates 98,0 Vastned Retail Belgium 98,0 WDP 97,5 WEB 96,2 Wereldhave Belgium 96,2 Xior 98,9 90,0 91,0 92,0 93,0 94,0 95,0 96,0 97,0 98,0 99,0 100,0 8 Except Ascencio (30/09/2018) and Immo Moury (31/03/2019) 21
GENERAL FIGURES – FINANCE GVV/SIR requirement: Statutory maximum gearing ratio of 65% of its assets. Debt ratio (%) at 31/12/2018 or closest financial year-end 9 0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 Aedifica 44,3 Ascencio 40,8 Befimmo 45,8 Care Property Invest 45,7 Cofinimmo 43,0 Home Invest Belgium 50,2 Immo Moury 17,3 Intervest Offices & Warehouses 43,5 Leasinvest RE 53,5 Montea 51,3 Qrf 52,1 Retail Estates 52,6 Vastned Retail Belgium 27,5 WDP 51,8 WEB 40,7 Wereldhave Belgium 29,7 Xior 49,3 9 Cf. Appendix B: End of financial year 22
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