EDMOND DE ROTHSCHILD REAL ESTATE SICAV PRESENTATION OF AUDITED RESULTS 31 MARCH 2019 www.edr-realestatesicav.ch EDMOND DE ROTHSCHILD, L’AUDACE DE BÂTIR L’AVENIR.
EDMOND DE ROTHSCHILD, L’AUDACE DE BÂTIR L’AVENIR. 2
MAIN CRITERIA ERRES - SWISS 66 buildings CHF 58 mio rental status 2’085 apartments March 2018 March 2019 NAV : 878 Mio CHF 894 Mio CHF Real Estate GAV : 1’243 Mio CHF 1’211 Mio CHF NAV / share: 114.97 117.08 Share Premium : 18.99% 18.64% LTV Ratio : 28.47% 29.18% TER evolution EBIT margin: 73.44% 71.74% Rental loss rate: 3.03% 3.14% TER (GAV) : 0.70% 0.70% Investment yield: 4.96% 4.94% EDMOND DE ROTHSCHILD 3
P&L - 31 MARCH 2019 INCOME From From 01.04.2017 01.04.2017 8 Changes in 9 to 31.03.2018 to 31.03.2018 Changes in CHF % CHF CHF Income Rental income 54'095'482 57'003'797 2'908'315 5.4% Other rental income 436'277 162'310 -273'967 -62.8% Bank interest -62'402 -158'784 -96'381 154.5% Interim interest 926'780 699'127 -227'652 -24.6% Subscriber's participation to accrued income 2'227'975 - -2'227'975 -100.0% Other income 1'199'106 1'510'599 311'493 26.0% Total 58'823'217 59'217'050 393'833 0.7% Increase of rental income due to the contribution of the new buildings: Promenade des Artisans (GE), Chatel- Saint-Denis (FR) et Satigny (GE) Extraordinary income 2017/2018 : capital increase 2.2 MCHF, Veyrot early termination indemnity: 0.6 MCHF Dissolution of unallocated accounting provisions booked during the voluntary liquidation of Orox Capital Investment in 2015, resulting in an income of more than 1 MCHF EDMOND DE ROTHSCHILD 4
P&L - 31 MARCH 2019 EXPENSES & EARNINGS From From Increase in the maintenance and 01.04.2017 01.04.2017 8 Changes in CHF Changes in repairs item compared to the 9 to 31.03.2018 to 31.03.2018 % % total % total previous financial year but at a Expenses CHF income CHF income consistent level over the medium Maintenance and repairs 2'191'598 3.73% 3'064'068 5.17% 872'470 39.8% term Mortgage interest 5'017'437 8.53% 5'142'925 8.68% 125'488 2.5% Other interest 19'076 0.03% - 0.00% -19'076 -100.0% The amount of direct tax increases Property management by 72 bps following the increase in a) Property charges (water, electricity, caretaker service, income in the Canton of Geneva 3'947'781 6.71% 3'506'928 5.92% -440'854 -11.2% cleaning, insurances, property tax, etc.) b) Administration costs (management fees) 1'826'372 3.10% 1'820'558 3.07% -5'815 -0.3% Realized capital gains generated Direct Taxes 11'616'049 19.75% 12'119'945 20.47% 503'896 4.3% by the sale of Agora and the sale Valuation and audit costs 298'305 0.51% 283'237 0.48% -15'068 -5.1% of 7 apartments in Malters Lawyers 54'123 0.09% 4'159 0.01% -49'964 -92.3% Editing, printing costs 30'000 0.05% 18'625 0.03% -11'375 -37.9% The negative variation in the Other expenses 384'116 0.65% 408'595 0.69% 24'479 6.4% unrealized capital gain is related to Statutory compensation paid: the booking of the realized capital to the manager gain following the sale of Agora. 4'800'000 8.16% 5'090'000 8.60% 290'000 6.0% to the management 885'756 1.51% 960'270 1.62% 74'514 8.4% Net value increase : + 18.2 MCHF to the custodian 352'093 0.60% 379'189 0.64% 27'096 7.7% Assignment(s) to provisions for risky debtors 133'874 0.23% 446'438 0.75% 312'563 233.5% Net value decrease : - 8.0 MCHF Total expenses 31'556'581 53.65% 33'244'936 56.14% 1'688'356 5.4% Offset realized gain : - 15.4 MCHF Net income 27'266'636 46.35% 25'972'113 43.86% -1'294'523 -4.7% Deferred taxes : + 1.1 MCHF Profit/loss on investments made 2'280'153 20'229'167 17'949'013 787.2% Earnings 29'546'790 46'201'280 16'654'490 56.4% Total : - 4.1 MCHF Profit/loss of unrealised capital (variation) 13'126'148 -4'153'719 -17'279'867 -131.6% Financial year earnings 42'672'938 42'047'561 -625'377 -1.5% EDMOND DE ROTHSCHILD 5
HISTORICAL DATA ERRES - SWISS Growth of dividend and NAV since inception Build up of a carry-forward for 3 consecutive years, of which CHF 2.65 per share in 2018/19 related to the sale of Agora As at 31.03.2019, distribution proposal as 0.2 0.2 3.40 follows, subject to approval by General Assembly 3.30 3.12 Distributable income to investors 3 0.75 51 ’ 394 ’ 935 CHF CHF 6,73 /share 2.8 Distribution 2018/19 NAV evolution 1.35 26 ’ 730 ’ 074 CHF CHF 3.50 /share Distribution net income: 25 ’ 966 ’ 357 CHF CHF 3.40 /share Distribution capital gain: 763 ’ 716.40 CHF CHF 0.10 /share Net carry-forward 24 ’ 664 ’ 861 CHF CHF 3.23 /share EDMOND DE ROTHSCHILD 6
DISCOUNT RATE / VALUE CHANGES 5,00% 4,50% 4,00% Market value increase 40.7 MCHF 3,50% 4,52% 4,51% 4,42% 4,28% Including CAPEX 30.5 MCHF 4,11% 3,00% 4,02% 3,93% 3,77% 2,50% Net unrealised capital gain 10.2 MCHF 2,00% 2012 2013 2014 2015 2016 2017 2018 2019 Main capital gains*: Main capital losses: Rental › Casino 51 – Montreux (VD) : value decrease of Capital Capital gain Discount rate income 2 ’ 543 ’ 000 CHF resulting from negociation with gain in CHF in % change change the main tenants Artisans (GE) 6’025’000 21.1% 0.1% -5.4% › Cantonale 18 – Conthey (VS) : value decrease of 2 ’ 290 ’ 000 CHF to take into account the poor Meyrinoise (GE) 3.0% 5.9% -5.5% 2‘025'000 rental market conditions Petite Prairie (VD) 2.2% 0.3% -5.1% 1‘000'000 › Maladière 23 – Neuchatel (NE) : Decrease of 480 ’ 000 CHF XXXI Décembre 26 (GE) 920’000 4.4% 0.0% -5.9% *excluding construction works EDMOND DE ROTHSCHILD 8
TENANCY SCHEDULE EVOLUTION COMPARED TO MARCH 2018 648 KCHF 200 000 +678 KCHF on a 150 000 comparable basis 100 000 Main increases related to 50 000 significant CAPEX - Improvement in Nyon and -50 000 Feldmeilen -100 000 Rent adaptation in Uznach -150 000 (SG) and La Roche (FR) -200 000 Specific situation in Conthey (VS) EDMOND DE ROTHSCHILD 9
FOCUS ON VACANT SPACES Vacant space evolution Top 5 vacant spaces at 31.03.2019 Promenade des Artisans – Meyrin : Only 260 sqm vacant i.e 80 Meyrinoise – Meyrin : Renovation, apartment rotations KCHF out of 1.6 MCHF rental income (5%) and vacancy in the newly created storages • Freiburgstrasse 555-556 – Niederwangen : Commercial centre Gachoud 8 – Fribourg : Apartment rotations with difficult rental situation. Study of residential conversion still in process Cantonale 18 – Conthey : Stable situation even though markets rents were dropped. EDMOND DE ROTHSCHILD 10
FINANCING 39 810 000 47 500 000 34 300 000 43 000 000 40 115 000 39 500 000 Maturity 34 860 000 34 460 000 4.34 years 30 975 000 8 900 000 Average cost - 1.37% 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 > 2028 31.03.15 31.03.16 31.03.17 31.03.18 31.03.2019 CHF 354 CHF 353 Debts in progress CHF 242.8 Mio CHF 267.8 Mio CHF 337.1 Mio Counterparties Mio Mio 8 Weighted average 1.60% 1.58% 1.46% 1.41% 1.37% rate Weighted average 5.22 ans 4.88 ans 4.40 ans 4.31 ans 4.34 ans maturity Debt ratio 28.57% 26.39% 30.22% 28.47% 29.18% EDMOND DE ROTHSCHILD 11
SECTOR ALLOCATION 31.03.2018 31.03.2019 13% 19% 51% 54% 33% 30% 51% 54% Residential Residential Commercial Commercial 30% 33% 19% Mixed Mixed 13% EDMOND DE ROTHSCHILD 12
GEOGRAPHIC ALLOCATION 31.03.2019 31.03.2018 35% 37% Geneva Geneva 25% 28% Vaud Vaud 16% 10% Fribourg Fribourg 6% 6% Zürich Zürich 5% 5% Neuchâtel Neuchâtel 3% Basel 3% Basel Argovie Argovie 3% 3% Others Others 7% 8% EDMOND DE ROTHSCHILD 13
AGORA – FRIBOURG (FR) SALE 21.0 MCHF 4.0 MCHF 84.1 Transfer of ownership 1st december 2018 MCHF Realized capital gain after taxes 19.6 MCHF Manage portfolio risk (concentration, rental value) EDMOND DE ROTHSCHILD 15
HALDENRAIN - MALTERS (LU) SALES 2 residential buildings dedicated to condominium › 20 apartements sold as at 31/03/2019 › 2 apartements reserved with transfer of ownership in Q3 2019 › Realized capital gain 2’480’078 CHF › Remaining capital gain (2019/20) 215’156 CHF 2 residential buildings dedicated to rental › Fully rented since September 2018 › Cost : 11’008’013 CHF › Rental income : 435’636 CHF › Gross yield : 3.96% EDMOND DE ROTHSCHILD 16
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