6M2018 RESULTS PRESENTATION 31 July 2018
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CONTENTS 6M18 Financial results ISMAEL CLEMENTE Portfolio performance CEO Offjces Shopping centers Logistics Valuation and debt position MIGUEL OLLERO GM / COO Value creation Closing remarks DAVID BRUSH CIO
Key highlights | Financial performance • +3.5% Rents YoY • EPS up 8.6% YoY • EPRA NAV per share up 18.2% YoY to € 14.06 • DPS guidance of € 0.50 per share reconfjrmed • TSR of 8.1% in the period (22.1% LTM) • Leverage further reduced to 43.3% Operating performance • Strong letting activity in the period: 473,473 sqm • Strong momentum in rental growth across all categories • Occupancy growing: · Offjces: +84 bps to 87.9% · Retail: +19 bps to 89.1% (excluding Flagship execution capex) Value creation • € 455m invested year to date (Almada + Zen + logistics) • Divestment activity on track • Good progress in Landmark I / Flagship / Best II ı 4 ı
6M18 FINANCIAL RESULTS
6M18 Financial Results | +18.2% increase in EPRA NAV per share and +8.6% in IFRS EPS YoY 6M18 6M17 YoY (€ million) 243.2 235.1 +3.5% Gross Rents 209.5 208.0 +0.7% Net rents Testa and Aedas 194.8 198.6 (1.9%) EBITDA (1) service fee 140.9 148.6 (5.2%) FFO (2) 136.1 142.6 (4.6%) AFFO 457.6 421.4 +8.6% IFRS net profit 6,603.8 5,585.9 +18.2% EPRA NAV (€ per share) 0.30 0.32 (5.2%) FFO Recurring On track 0.29 0.30 (4.6%) AFFO with guidance 0.97 0.90 +8.6% IFRS EPS 14.06 11.89 +18.2% EPRA NAV Source: Company (1) Excludes non-recurring items (€ 0.8m) plus LTIP accrual (€ 21.9m) (2) FFO equals EBITDA less net interest payments, less minorities, less recurring income taxes plus share in earnings of equity method ı 6 ı
6M18 Financial Results | Bridge gross rents Robust LfL growth in all asset categories except offjces, still penalised by the exits of Renault and Huawei. If excluded +4.4% LfL in offices and +4.3% overall Offjce (0.6%) (€m) LfL (1) Shopping centers +3.2% +2.0% Logistics +7.8% H. Street retail +3.8% Other +5.3% +3.6 243.2 +4.5 235.1 6M 2017 Like-for-Like Balance 6M 2018 growth acquisitions, disposals and other (1) 6M18 (€ 229.0m GRI) vs 6M17 (€ 224.5m GRI) ı 7 ı
OFFICES
Offices | Rent bridge and breakdown Offjces LfL affected by Renault-Adequa and Huawei-Las Tablas. If excluded +4.4% LfL (€m) LfL (1) (0.6%) (0.6) 110.2 108.4 +2.4 6M 2017 Like-for-Like Balance acquisitions, 6M 2018 growth disposals and other Lfl growth by area Occupancy by area 1Q18 2Q18 +3.4% if Renault 86.0% 86.9% (2.4%) Madrid Madrid and Huawei excluded +86 bps +10.2% 90.3% 90.5% Barcelona Barcelona +26 bps 87.2% 89.9% +18.9% Lisbon Lisbon +264 bps (1) Offjce portfolio in operation for the 6M17 (€ 103.4m GRI) and for the 6M18 (€ 102.8m GRI) ı 9 ı
Offices | Leasing activity Rental growth accelerating (+4.7% release spread vs +3.4% FY17) Contracted Release # T enants sqm spread contracts Madrid 121,644 +3.8% 165 Castellana 280 Atica Avda. Burgos 210 PE Sanchinarro +35% +26% 6,176 +15% Release spread Release spread sqm Release spread WTC PE 22@ Torre Glòries Barcelona 42,991 +8.8% 71 2,907 +17% 10,276 sqm Release spread sqm Lisbon 17,987 +7.3% 23 Marqués Pombal 3 Central Offjce +15% +17% +13% +16% Release spread Release spread Release spread Release spread 182,621 +4.7% 259 TOTAL ı 10 ı
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