2015 RESULTS ROADSHOW PRESENTATION
2015 RESULTS ROADSHOW PRESENTATION - 2015 Highlights p. 3 - Company profile p. 4 - Portfolio p. 9 - Healthcare segment p. 14 - Office segment p. 21 - Financial results p. 28 - Investment pipeline & forecast p. 36 - Appendices p. 40 2 2015 RESULTS – ROADSHOW PRESENTATION
2015 HIGHLIGHTS - Solid financial & operational results - Net current result (excl. IAS 39 impact) per share: 6.46 EUR, above the forecast at 6.26 EUR - Current cash flow per share: 5.92 EUR (+3.1 % compared to 2014) - Gross rental revenue growth: +3.8% (LFL: -0.7%) - Resilient occupancy rate at 94.9% and average lease maturity of 10.5 years - Healthcare: - Total realized investments in 4 countries in 2015: 103.9 millions EUR - Since the capital increase, 115.8 million EUR of new investments and signed commitments (mainly in Netherlands and Germany) on top of the committed pipeline announced in May - Sale of the 95% stake in Silverstone, owner of 20 nursing homes in Belgium, for 92.6 million EUR, with the assets valued at 134.5 million EUR (10% above the fair value at 31.12.2014 - achieved IRR of 8.5%) - Offices: - Successful reconversions of offices in residential: 100% of the units sold - Arbitrage: sale of the shares of the company Livingstone II, owner of the Livingstone II building, for 60 million EUR, with an exit yield at 4.3%. Properties valued at 63.9 million EUR (29% above the fair value at 31.12.2014) - Guimard 10-12 building, located in Brussels CBD is 90% let (renovation works finalized in Q3 2015) - Optimizing financial structure - Funds raised for a total amount of 475.4 million EUR in 2015 (equity and bonds) - Debt ratio down to 38.6% - Cost of debt reduced to 2.9% and average debt maturity increased to 5.3 yrs - S&P rating upgrade from BBB- to BBB (stable outlook) 3 2015 RESULTS – ROADSHOW PRESENTATION
COMPANY PROFILE Nu Nursi sing ng home No Noordd ddui uin - Coxyde de (BE)
ABOUT COFINIMMO - Leading Belgian listed REIT exposed to healthcare real estate (42 %) and offices (40 %) - 1 st healthcare listed property investor, with combined presence in Belgium, France, the Netherlands and Germany - Total portfolio fair value > 3.1 billion EUR - REIT status in Belgium (SIR), France (SIIC) and the Netherlands (FBI) - Internal real estate management platform > 120 employees - Total market capitalisation > 2 billion EUR - Included in major stock indexes: Bel20, EPRA Europe, GPR 250 5 2015 RESULTS – ROADSHOW PRESENTATION
OVER 30 YEARS OF EXPERIENCE 2007 2007 2013 2013 Sale and leaseback Reconversion of 2 office buildings of 1,068 pubs into apartments with AB InBev 1994 1994 Listing on the 2015 2015 Brussels Stock Capital increase of Exchange 285.4 million EUR. 1999 1999 2011 2011 Internalisation Sale and The healthcare of property leaseback of segment in the management for 283 insurance Netherlands and offices agencies Germany each over with MAAF 100 million EUR 2014 2014 2008 2008 First First acquisition acquisition of healthcare 2012 2012 of property 1996 1996 First acquisition healthcare in France Adoption of of healthcare property B-REIT status property in the in Germany Netherlands 1983 1983 Establishment 2005 2005 of the company First acquisition ( € 6M capital) of healthcare property in Belgium 6 2015 RESULTS – ROADSHOW PRESENTATION
STRATEGIC FOCUS Healthcare real estate: driven by demography • Acquisitions in new markets (namely the Netherlands & Germany) • Greenfield projects in more mature markets (Belgium and France) • Further diversification per country, per medical specialty and per operator Offices: driven by economics • Comprehensive & pro-active local operating platform • Renovation programs to upgrade the quality • Reconversion to alternative usages • Arbitrage within a portfolio kept above critical size Long term presence in its two core segments & strong internal expertise 7 2015 RESULTS – ROADSHOW PRESENTATION
THE COFINIMMO SHARE High visibility among institutional investors & sound daily liquidity Total return over the past 12 months: +11.2 % Shareholders (Estimate at 31.12.2015) 130 120 Private banking Pension fund 18% 110 2% Sovereign fund Own shares 0% 1% 100 Retail 15% 90 80 Insurance 31/12/2014 31/03/2015 30/06/2015 30/09/2015 31/12/2015 company 5% COFB TR Bel20 TR index EPRA Europe TR index Not identified 36% Investment - Market cap: 2 billion EUR at 31.12.2015 fund 23% - Number of shares: 21,030,226 - 100 % free float - Major indexes: Bel20, EPRA Europe, GPR 250 - 4.5 million EUR traded daily on average - Velocity: 57 % - 2015 dividend: 5.5 EUR (pay out ratio = 85.1%) 8 2015 RESULTS – ROADSHOW PRESENTATION
PORTFOLIO Aspr pria Uh Uhlen enho horst- Hambu burg (D (DE) E)
DIVERSIFIED PORTFOLIO - Total portfolio fair value at 31.12.2015: 3,134 million EUR - Focus on 2 core segments - Healthcare is the 1 st segment with 42% of the global portfolio at 31.12.2015 - Sector/geographical diversifications mitigate market risks Portfolio breakdown per segment Portfolio breakdown per location Others Germany Property of 1% Netherlands 2% distribution 8% networks Healthcare 17% real estate 42% France 16% Belgium 74% Offices 40% Occupancy rate: 95% Average lease maturity: 10.5yr 10 2015 RESULTS – ROADSHOW PRESENTATION
EVOLUTION OF PORTFOLIO INVESTMENT VALUE Evolution of portfolio investment value (in million EUR) 3.600 +131 -203 3.400 3.329 +10 -5 3.262 3.200 3.000 Portfolio investment Investments Divestments Writeback of lease Change in investment Portfolio investment value at 31.12.2014 payments sold value value at 31.12.2015 11 2015 RESULTS – ROADSHOW PRESENTATION
SOLID OPERATIONAL RATIOS Lo Long te tem m leas ases Stable le yields In years 27.8 30 7.8% 8% 6.9% 25 6.7% 6.6% 6.4% 6.4% 6.3% 6.2% 19.9 20 6% 14.8 13.9 12.9 15 10.5 4% 10 6.3 5.1 4.3 2% 5 0 0% Healthcare Offices Distribution Total networks Gross yield Net yield Resilie lient t occupancy y rat ate Stable le valu aluatio ion (on a LF LFL bas basis is) 100% 2,0% 1.5% 90% 99.2% 98.0% 1,5% 94.9% 80% 89.7% 1,0% 70% 0,5% 60% 50% 0,0% 0.3% 40% Healthcare Offices Distribution Total -0,5% 30% -0.3% networks -1,0% 20% 10% -1,5% 0% -2,0% Healthcare real Offices Property of Total -2,5% estate distribution -2.4% -3,0% networks 12 2015 RESULTS – ROADSHOW PRESENTATION
QUALITY TENANTS Top 10 tenants: 70% of rental income - 13 years average lease maturity 1 st tenant: KORIAN-MEDICA Group Public sector: 10% of rental income 18% 16.1% 16% 14.2% 14% 11.1% 12% 10% 8% 6.0% 5.6% 6% 4.4% 3.7% 3.6% 3.0% 4% 2.0% 2% 0% 13 2015 RESULTS – ROADSHOW PRESENTATION
HEALTHCARE SEGMENT Nu Nursi sing ng home e Damiaa aan - Tremel elo (BE) E)
HEALTHCARE PORTFOLIO AT 31.12.2015 Fair value of healthcare portfolio: 1,223 million EUR Average lease length: 15.5 years Strategic diversification by country and medical specialty: no dependency on one single social security system Healthcare portfolio breakdown Healthcare portfolio breakdown by location: by medical specialty: Netherlands 2,8% 2,7% 0,5% 8% 3,6% Germany Belgium 4,2% Skilled nursing facilities 5% 58% Revalidation clinics 7,2% Wellness Psychiatric clinics France 11,2% Elderly care clinics 29% Assisted living 67,9% Acute care clinics Disabled care facilities 15 2015 RESULTS – ROADSHOW PRESENTATION
STRONG GROWTH AMBITIONS Cofinimmo intends to reinforce its position as major player in Continental Europe in healthcare real estate in care & cure market In 2015, 162 million EUR invested and committed Care & cure market (elderly Care market care, disabled (greenfield projects, people, acute skilled nursing care clinics, home facilities, medical office elderly care) buildings,...) Care & cure market Care market (rehabilitation (elderly care, clinics, elderly psychiatric care, leisure and clinics,...) health,...) 16 2015 RESULTS – ROADSHOW PRESENTATION
SIMPLIFIED FUNDAMENTALS PER COUNTRY Germany and the Belgium & France Netherlands Care/cure component Care/cure component financed by Financing financed by subsidies compulsory insurance to operator contracted by patient Quota of licences for No quota of licences Barriers to entry nursing home beds per for nursing home beds area per area Low – Private market High – Private market segmented amongst a Market consolidation dominated by a few large number of mid- important players size operators Changes in the social Changes in the social security systems security systems Potential risks Less advantageous Limited authorisations insurance schemes for new beds 17 2015 RESULTS – ROADSHOW PRESENTATION
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