2016 HALF- YEAR RESULTS ANALYST CALL PRESENTATION
2016 HALF-YEAR HIGHLIGHTS - Financial results confirming FY forecast: 1H 2016 1H 2015 FY 2016 FY 2015 FY 2014 Per share (EUR) Actual Actual Forecast Actual Actual Net current result (excl. IAS 39) - Group share (EPRA Earnings) 2.86 3.35 6.19 6.46 6.70 Result on the portfolio - Group share 0.58 -0.38 n/a 0.32 -2.06 Net result (incl. IAS 39) - Group share 1.65 3.04 n/a 5.23 -2.93 EPRA NNNAV 90.96 - n/a 90.93 88.66 - 2016 forecasted gross dividend: 5.50 EUR per ordinary share - Continued investment programme: - Acquisition of 2 healthcare assets in Germany : 39 million EUR - Agreements for the extension of 3 healthcare assets in Belgium & France : 16 million EUR - Acquisition of an of offi fice build buildin ing in Brussels: 31 million EUR - Realised investments since the May 2015 capital increase: 171 million EUR (healthcare: 120 million EUR; offices: 47 million EUR) - Pipeline of committed investments for the period 01.07.2016 – 31.12.2018 : 308 million EUR (healthcare: 117 million EUR; offices: 179 million EUR) - Conditional sale of the Souverain/Vorst 25 office building (Brussels Decentralised): - Property transfer at the earliest at the departure of the current tenant AXA (August 2017) - Reconversion by Cofinimmo of the Souverain/Vorst 23 building into residential 2
COMPANY PROFILE Wo Woluw uwe e 58 off ffice e building ng – Brus usse sels (BE): : Cofi ofini nimmo o head adqua uarters
TWO COMPLEMENTARY CORE SEGMENTS HEALTHCARE REAL ESTATE - driven by demography • Acquisitions in new markets (Netherlands & Germany) • Greenfield projects in more mature markets (Belgium & France) • Further diversification per country, per medical specialty and per operator OFFICES - driven by economics • Comprehensive & pro-active local operating platform • Renovation program to upgrade quality • Reconversion to alternative uses (residential, healthcare) • Arbitrage within a portfolio kept above critical size Long-term presence in both core segments & strong internal expertise 4
PORTFOLIO AT 30.06.2016 Portfolio fair value: 3,234 million EUR Portfolio breakdown by segment Portfolio breakdown by country (in fair value): (in fair value): Others Germany Property of 1% 3% distribution Netherlands networks 8% Healthcare 17% real estate 44% France 16% Belgium Offices 73% 38% 5
SHAREHOLDER STRUCTURE Shareholder structure (estimate at 30.06.2016): Declared shareholders: Retail investors 11.0% Percentage Number of of total shares Private banking shares 14.4% Crédit Agricole Group 1,058,265 5.0% Unknown Cofinimmo Group 46,499 0.2% 41,3% Others 19,925,984 94.7% Insurance Total 21,030,748 100.0% companies 11.6% Pension funds Own shares Investment 1.7% 0.2% funds Sovereign fund 18.7% 1.1% 6
STOCK PERFORMANCE 1H 2016 Total return of the Cofinimmo share: +11 % 7
PROPERTY PORTFOLIO Me Medi dical al off ffice buildi ding ng Stijp jp-Z Z – Eind ndhov oven en (NL NL)
LONG AVERAGE LEASE MATURITY Long residual lease length -> high visibility of income Average lease maturity (in years): 30 26.6 25 19.6 20 14.3 15 13.4 10.2 10 5.8 4.7 4.0 5 0 Healthcare Healthcare Healthcare Healthcare Offices Pubstone Cofinimur I Total BE FR NL DE (AB Inbev) (MAAF) 9
RESILIENT OCCUPANCY, QUALITY TENANTS Occupancy rate: 100% 99.2% 98.6% 94.9% 80% 89.6% 60% 40% 20% 0% Healthcare Offices Property of Total Top 10 tenants (as % of rental income - LHS) real estate distribution networks and lease maturity (in years - RHS): 25% 25 20% 20 15.5% 13.7% 15% 15 10.9% 10% 10 6.1% 3.6% 5.4% 3.7% 4.2% 3.1% 5% 5 2.0% 0% 0 10
STABLE PORTFOLIO VALUATION Gross/net yields: 8.1% 8% 7.0% 6.6% 6.5% 6.3% 6.2% 6.2% 6.1% 6% 4% 2% 0% Healthcare Offices Distribution Total networks Gross yield Net yield Like-for-like portfolio growth vs. 31.12.2015 (in fair value): 3,0% 2.7% 2,0% 1,0% 1.1% 0.4% 0,0% Healthcare Offices Distribution Total networks -1,0% -2,0% -2.4% -3,0% 11
HEALTHCARE SEGMENT Arcus us nursi sing g home – Brus ussel els (BE)
STRONG GROWTH AMBITIONS NETHERLANDS BELGIUM Care & cure market Care market (skilled (care of elderly or nursing homes: disabled, acute care greenfield projects) clinics, medical office buildings) GERMANY FRANCE Care & cure market Care market (skilled (skilled nursing nursing homes, homes, revalidation & rehabilitation psychiatric clinics) clinics) Targeted initial rental yields > 5.5 % 13
HEALTHCARE PORTFOLIO AT 30.06.2016 Fair value of healthcare portfolio: 1,419 million EUR Strategic diversification by country and care specialty -> no dependency on one single social security system Portfolio breakdown by country Portfolio breakdown by care specialty (in fair value): (in fair value): 2.8%2.6%0.5% Netherlands 9% Skilled nursing facilities 3.5% Belgium Germany 56% Revalidation clinics 7% 4.0% 6.9% Wellness Psychiatric clinics France 12.9% Elderly care clinics 28% 66.8% Assisted living Specialised clinics Disabled care facilities 14
ACQUISITIONS IN GERMANY & THE NETHERLANDS Bavel Centre Clinic Kaiser Karl Residence Calau Bavel (Netherlands) Bonn (Germany) Brandenburg (Germany) Acquisition of a care centre Acquisition of an operational Acquisition* of an newly built for elderly people, under revalidation clinic skilled nursing facility construction Surface area: 15,500 m² Surface area: 4,600 m² Surface area: 2,140 m² Investment: 30.0 million EUR Investment: 9.1 million EUR Investment: 3.4 million EUR Operator: Eifelhöhen-Klinik AG Operator: M.E.D. Gesellschaft Operator: Martha Flora Lease: 25 years – “double net” für Altenpflege mbH Lease: 20 years - “double net” Lease: 25 years – “double net” * Event after 30.06.2016. Initial rental yields: between 6.0 % and 8.0 % 15
GREENFIELD PROJECTS IN BELGIUM & FRANCE Residence Millegem Domaine de Vontes Ranst (Belgium) Esvres-sur-Indre (France) Delivery of the extension Agreement for the renovation works of a skilled nursing and extension of a facility rehabilitation clinic Extra surface area: 1,440 m² Extra surface area: +2,214 m² Extra beds: 29 Extra beds: +60 Investment: 2.7 million EUR Investment: 6.8 million EUR Operator: Armonea Operator: Inicea Lease: 27 years – NNN Lease: 12 years – NN Residence De Nootelaer Residence Zonnewende Keerbergen (Belgium) Aartselaar (Belgium) Agreement for the renovation Agreement for the renovation and extension of a skilled and extension of a skilled nursing facility nursing facility Extra surface area: +500 m² Extra surface area: +3,500 m² Extra beds: +2 Extra beds: +13 service flats Investment: 2.7 million EUR Investment: 6.6 million EUR Operator: Senior Living Group Operator: Senior Living Group Lease: 27 years – NNN Lease: 20 years – NNN Initial rental yields: between 6.0 % and 6.5 % 16
OFFICE SEGMENT Off ffice e buildi ding g Gu Guimard d 10-12 12 - Brus ussel els (BE) E)
OFFICE PORTFOLIO AT 30.06.2016 Fair value of office portfolio: 1,246 million EUR Mainly Brussels CBD and decentralised areas 23 % let to public tenants Portfolio breakdown by district Portfolio breakdown by tenant type (in fair value): (in fair value): BE public Other sector regions 13% 9% Antwerp Brussels CBD 6% Intl. public 34% sector Brussels Periphery/ 10% Satellites 11% Others 77% Brussels Decentra- lised 40% 18
ACQUISITION IN STRATEGIC LOCATION Arts/Kunst 46 Brussels CBD Surface area: 11,516 m² Investment: 31 million EUR Average occupancy: 83 % Average residual lease term: 5.5 yrs Rental yield: 6.2 % Rental yield at 100 % occupancy: 7.5 % 19
RENOVATIONS IN STRATEGIC LOCATIONS Off ffice e buildi ding g Gu Guimard 10 10-12 12 – Brus ussels (BE) - Guimard 10-12 (10,800m²) - Brussels CBD - Renovation of offices - End of works: 3Q2015 - Budget of works: 14.8 million EUR - 100 % let, mainly to Bank Degroof Petercam - Belliard 40 (20,000m²) - Brussels CBD Office building Belliard 40 – Brussels (BE) Projected situation after works - Demolition of current property and construction of new building - BREEAM certificate ‘Excellent’ aimed - Expected end of works: 3Q2017 - Budget of works: 44 million EUR - Marketing underway 20
RECONVERSIONS TO MAXIMIZE CAPITAL RECOVERY - Woluwe 106-108 (7,000m²) - Brussels Decentralized - Reconversion into nursing home - Signature of 27-year lease with healthcare operator Vivalto - Planning permission under progress - Expected end of works: 3Q2017 - Budget of works: 13 million EUR - Yield on cost: 5.88 % Nursing home Woluwe 106-108 – Brussels (BE) Projected situation after works 21
REDEVELOPMENT OF AXA SITE - Brussels Decentralized - Souverain/Vorst 25 (38,500 m²) - AXA to vacate site in August 2017 - Sales agreement signed with foreign government, subject to prior administrative - Tenreuken (9,000 m²) approvals - Residential development - Apartments will be put up for sale - Souverain/Vorst 23 (+/- 20,000 m²) - Planning permission under progress - Reconversion into residential - Apartments will be put up for sale 22
FINANCIAL RESULTS Nu Nursi sing ng home De Ni Nieuw euwe Seigne gneur urie – Rumbek beke (Bel elgium um)
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