3m 2014 revenues - foncieredesregions.fr 2014 revenues a good start to the year cisco issy les...
TRANSCRIPT
3M 2014
Revenues
A good start
to the year
Cisco
Issy les Moulineaux
Citroën – Paris 17
May 6, 2014
Le Patio - Villeurbanne CB 21, La Défense
Pégase - Clichy
1 – Key events of the period
2 – Operating performance
3 – Key takeaways
1- Key events of the period
Le Patio – Lyon-Villeurbanne
Foncière des Régions – 3M 2014 4
Strategic positioning
Offices
66%
German
Residential 15%
Other
10%
Hotels and
Service Sector 9%
€16bn in assets: 1 focus and 2 diversifications in solid and attractive markets
• A unique Partner and Key Accounts positioning
• Strong visibility of leasing revenue
• Development opportunities
• Positioning as market leader
• An impressive track record
• Supporting our partners' development
• An experienced German local platform (operating since 2005)
• Reversion potential to be harnessed
Opportunities for growth in rental income and in value creation
€10bn
in assets
Group share*
*After the disposal of the logistic portfolio - Appraisal values at the end of 2013
Foncière des Régions – 3M 2014 5
Markets update
• 507,000 sq.m. leased for Q1 (+19%)
• Net effective rents still under pressure
French Office Market
• France: €3bn for Q1 (+70%)
• Record volume level for Germany Residential (€4.7bn for Q1)
• Recovery in Italy
Investment Markets
• Low cost of capital and abundant liquidity
• Sharp decrease of Italian credit spreads
Financial Markets
Improved environment
Foncière des Régions – 3M 2014 6
Rental activity
• Several successes for CB 21
• A new lease signed for 3,500 sq.m.
• Two term sheets exchanged for 3,500 sq.m.
• Occupancy above 97%
• 12,800 sq.m DS Campus extension finalized
• 11,000 sq.m San Nicolao fully leased before delivery,
13.4-year lease (7.4-year firm), €5.4 million p.a.
• New turnkey development with B&B hotels: Romainville
CB 21 – La Défense
Quality portfolio attracts new tenants
CB 21, La Défense
DS Campus, Vélizy
San Nicolao, Milan
Foncière des Régions – 3M 2014 7
Portfolio
• Logistics: disposal agreement for €473 million
• French Offices: €50 million disposals – small assets in medium-size cities
• Italy: good progress for Q1
CB 21 – La Défense
Improved focus: 90% core vs 85% at the end of 2013
Higher quality of assets
Higher medium term LFL rental growth prospects
Garonor
Nollendorffstrasse, Berlin
Investments in our Core Markets
616 M€ Group share in disposals, in-line with appraisal values
• Offices/Key Accounts: €300 million developement capex on track for 2014
• German Residential: €80 million preliminary agreements signed
Group Share
Foncière des Régions – 3M 2014 8
Revenues Q1 2014
• Rental Income up 20%
• Slight positive LFL despite leases
renegotiated in 2013
• High occupancy rate at 96%
Focus Offices – France: +0.5%
Indexation: +0.9%
New leases: +1.0%
Renewed leases/End of leases: -1.6%
Rent
(€m)
Change
% €m
Change %
LFL
Occupanc
y rate
Firm residual
term of leases
years, end of March
Offices - France 61.6 -4.3% 0.5% 96.1% 5.6
Offices - Italy 29.3 -0.8% -0.7% 97.9%* 6.7
Offices 90.9 -3.2% +0.1% 96.6% 5.9
Hotels/Service Sector 11.7 -6.7% -1.8% 100% 6.9
Residential 29.0 n/a +1.9% 98.4% n/a
Logistics 13.5 -3.6% -1.4% 85.6% 3.1
Total 145.1 20.5% +0.1% 96.0% 5.7
*Core Only
Group Share
Foncière des Régions – 3M 2014 9
FDL Spin-Off
• Several steps (extraordinary dividend, share buyback…) to split FDL German and French Residential portfolios
• German Residential directly owned by Foncière des Régions with an unchanged economic exposure
• FDL listed subsidiary portfolio decreased from €3.3bn to €0.8bn
• Strategy is being pursued both in Germany and France
Improved flexibility and clarity
Listed entities
Foncière des Régions
€16bn /€10bn GS
FDL
€3.3bn /€2.0bn GS
German Resi
€2.5bn /€1.5bn GS
French Resi
€0.8bn /€0.5bn GS
Foncière des Régions
€16bn /€10bn GS
59.7%
German Resi
€2.5bn /€1.5bn GS
FDL French Resi
€0.8bn /€0.5bn GS
Before After
c.60%
Le Patio - Villeurbanne
3 – Key takeaways
Foncière des Régions – 3M 2014 11 11
Key takeaways from Q1 2014
Some positives regarding property markets
Good leasing activity in La Défense and in Milan
Solid Q1 2014 operating performance
Disposal of a €473 million non-core logistic portfolio at appraisal values
Improved flexibility and clarity after the FDL Spin-Off
A Good Start to the Year
+
Acceleration in Refocusing
=
A Stronger Strategic Positioning
Foncière des Régions – 3M 2014 12 12
Agenda
First half of 2014: July 24, 2014
Foncière des Régions – 3M 2014 13 13
Q1 2014 Turnover
(€ million)
100% Group Share
Q1 2013 Q1 2014 Change
(%) Q1 2013 Q1 2014
Change
(%)
Change
(%)
LFL*
% of
rent
Offices France 66.9 64.6 -3.5% 64.3 61.6 -4.2% 0.5% 42%
Offices Italy 58.1 57.6 -0.8% 29.6 29.3 -0.8% -0.7% 20%
Total Offices 125.0 122.2 -2.2% 93.9 90.9 -3.1% 0.1% 63%
Hotels & Service Sector 48.3 45.4 -6.0% 12.5 11.7 -6.7% -2.0% 8%
Total Offices - Key Accounts 173.3 167.6 -3.3% 106.4 102.6 -3.6% -0.2% 71%
Residential 0.0 48.8 n/a 0.0 29.0 n/a 1.9% 20%
Logistics 14.0 13.5 -3.6% 14.0 13.5 -3.6% -1.4% 9%
Total rent 187.3 230.0 22.8% 120.4 145.1 20.5% 0.1% 100%
Foncière des Régions – 3M 2014 14
Disclaimer
This document contains forward-looking statements and information. By their nature, these statements and information include financial
forecasts and estimates as well as the assumptions on which they are based, statements related to projects, objectives and expectations
concerning future operations, products and services or future performance.
Although the management of Foncière des Régions management believes that these forward-looking statements and information are
reasonable,
Foncière des Régions cannot guarantee their accuracy or completeness and investors in Foncière des Régions are hereby advised that
these forward-looking statements and information are subject to numerous risks and uncertainties that are difficult to foresee and
generally beyond the control of Foncière des Régions, so that the actual results and developments may differ significantly from those
expressed, implied or forecasted in the forward-looking statements and information. These risks include those developed or identified in
the public documents filed by Foncière des Régions with the AMF, including those listed in the “Risk Factors” section of the Reference
Document registered with the AMF on March 24, 2014.
30, Avenue Kléber
75116 Paris
France
Cisco – Issy les Moulineaux