aedifica...results: h1 2012/2013 highlights occupancy rate: 97,3% for unfurnished portfolio and at...

Aedifica

19 February 2013

Half year results 2012/2013

Table of contents

Strategy

Achievements

Portfolio analysis

Financials

Outlook

Conclusion 2

Strategy

Aedifica

Belgian REIT market cap of €436m* free float of 88%

Investing in the residential market Focussing on demographical evolution

(ageing; growing population) Year-end: 30 June Withholding tax at 15%

4

* As of 15 February 2013

Demographic evolution Growing population - Brussels

5

Source: Bureau fédéral du plan

6

Demographic evolution Growing population - Antwerp

Source: Bevolkingsprognoses Antwerpen 2009-2030 (Stad Antwerpen)

Year

Num

ber o

f res

iden

ts

Scenario 1: Positive migration + increasing fertility. Scenario 2: Positive migration + stable fertility. Scenario 3: stable migration + stable fertility. Scenario 4: stable migration + decreasing fertility.

Source: Pacolet, J. et al. (2004) in Het grijze goud (Itinera Institute 2010)

Demographic evolution Ageing

7

Growth strategy in Belgium

8

Furnished apartments in Brussels

Senior housing

in Belgium

Unfurnished apartments in the city

Cash flow (triple net leases) + growth potential

Value play* + higher rental income

for furnished apartments

* Expected capital gains through arbitration of apartments on the long term. ** Including the goodwill and the book value of furnishings.

Hotels in Belgium

Weight: 23% Yield: 5.2% EBIT: 75%

Weight: 10% Yield: 8.2%** EBIT: 43%



Achievements

SPO December 2012

Public capital increase in cash with preferential right of €99,8 million in December 2012 (2,697,777 new shares issued)

Successful operation among existing shareholders + entry of new (institutional) shareholders

10

Investments: H1 2012/2013

11

18 December 2012 Acquisition of a plot of land in Beringen (Province of Limburg) for a development project of a rest home • €17.4m development project

(110 beds + 17 assisted-living apartments)

20 December 2012 Acquisition of a rest home in Sart-lez-Spa (Province of Liège) • €4.1m invested amount (80 beds) • €3.0m extension project (20 assisted-

living apartments) Résidence Les Cheveux d’Argent

Residentie Sporenpark

© 2

012-

A33

Arc

hite

cten

Portfolio 31 December 2012 Total portfolio volume

€619m including projects on balance sheet + €134m committed investments in pipeline (95% senior housing; 95% pre-let)

Total portfolio outlook = €753m including projects on balance sheet & committed investments in pipeline

Average remaining lease maturity: 18 years

5th largest Belgian REIT in terms of fair value (Based on “Belgian REIT Overview” by Bank Degroof, February 2013)

14th largest real estate portfolio in Belgium (36th in 2006) (Investors Directory 2013, Expertise BVBA edited in January 2013)

12

Results: H1 2012/2013 highlights

Occupancy rate: 97,3% for unfurnished portfolio and at 80,8% for furnished apartments

Debt-to-assets ratio: 35.1%

Rental income, operating margin and result excl. IAS 39 and IAS 40: above expectations and prior year

Positive variation of marketable investment property at fair value: +€9m or +1,51% (in income statement)

Unchanged dividend expectations for FY 2012/2013: €1,78/share

New tax regime applicable to dividends of residentiel REITs: Withholding tax at 15% European-wide playing field

New website

13

Portfolio analysis

Breakdown: Segments

15

Unfurnished apartment buildings (543 apartments in 24 sites)

Furnished apartment buildings (295 apartments in 9 sites)

Senior housing (3.335 beds & 102 other units in 38 sites)

6 hotels (521 rooms) and other

(As of 31 December 2012)

23%

10% 54%

13%

Marketable property at fair value (€598m)

Geographical breakdown

16

Marketable property at fair value

47%

17%

36%


Breakdown: Buildings

17

(As at 31 December 2012)

Breakdown: Main tenants

18

Based on contractual rents

31 December 2012Orpea 18%Senior Living Group 18%Armonea 11%Soprim@ 4%Other senior housing 2%Subtotal senior housing 53%Martin's Hotels 8%Different Hotel Group 4%Subtotal hotels 12%Other types of tenants 35%TOTAL 100%

Breakdown: Lease maturity

19

≥ 27 years

15 years

< 15 years

68% irrevocable

18 years Marketable property at fair value

Initial lease maturity

Average remaining lease maturity

67%

1%

32%


Breakdown: Age of buildings

20

Other contracts Buildings between 0-10 years

Other contracts Buildings > 10 years

Triple net contracts 68% 15%

17%



Occupancy rate - Furnished apartments* (10% of portfolio)

21

*Definition Furnished : rented days QTD / total number of days QTD. YTD December 2012: 80,8%; YTD June 2012: 82,3%; YTD December 2011: 84,3%.

07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec

Volatility due to short-term contracts

Occupancy rates between 70%-93%

22

*Definition Total portfolio (excl. furnished apartments) : (contractual + guaranteed rents) / (contractual rents + ERV for unlet spaces)

Very high and stable occupancy rates 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec

95.6% 94.8% 95.6% 96.3% 96.8% 97.2% 97.4% 97.1% 96.3% 96.3% 96.6% 96.5% 96.9% 96.0% 97.4% 97.6% 97.4% 97.9% 97.9% 97.9% 97.8% 97.4% 97.3%

Occupancy rate - Portfolio excl. furnished apartments* (90% of portfolio)

Occupancy rates between 95%-98%

Yields on fair value

23

Unfurnished apartment buildings

Furnished apartment buildings

Senior Housing

Hotels and

other

Weighted average

6.1%

Gross = Net


* Including the goodwill and the book value of furnishings.

*

Segment EBIT margins*

24

75% 48% 100% 96% - 71%

74% 52% 100% 98% - 75%

TOTAL

FY 2008/2009

FY 2010/2011

Total EBIT margin higher than prior years and expectations

Unallocated & inter-segment

Residential or mixed buildings

Buildings with

furnished apartments

Senior housing

Hotels &

other

70% 54% 100% 98% - 68% FY 2007/2008

77% 44% 100% 99% - 73% FY 2009/2010

* EBIT / net rental income

77% 45% 100% 99% - 76% FY 2011/2012


75% 43% 100% 99% - 77% HY 2012/2013

Limited decrease

Valuation of property: 2008 2012

25

Positive trend since January 2010

* Excluding initial FV of acquisitions, and excluding MTM on development projects.

Resilience Increase

Increase

€k %Unfurn. -5,282 -4%Furn. -2,569 -6%Senior 13 0%Other -1,415 -4%Total -9,253 -3%

FY 2008/2009

€k %Unfurn. -1,282 -1%Furn. -622 -1%Senior 1,684 1%Other -963 -2%Total -1,183 0%

FY 2009/2010

€k %Unfurn. 930 1%Furn. 622 1%Senior 6,072 2%Other 1,191 2%Total 8,815 2%

FY 2010/2011

€k %Unfurn. 2,245 2%Furn. 787 1%Senior 5,991 2%Other 45 0%Total 9,068 2%

FY 2011/2012

Increase

€k %Unfurn. 680 1%Furn. 613 1%Senior 6,702 2%Other 868 1%Total 8,863 2%

HY 2012/2013

Project or renovation(in € million)

Address Estimated inv.

Inv. as of 31 December

2012

Future inv.

Date of completion

Comments

I. In progressSeniorerie La Pairelle Phase II Wépion 2.2 0.8 1.4 2012/2013 Renovation and extension of a rest home.Residentie Sporenpark Beringen 17.4 1.9 15.5 2014/2015 Construction of a new rest home.Résidence Palace - Parkings Brussels 0.2 0.1 0.1 2014/2015 Acquisition of 6 parking spaces to be built.Edelweis Begijnendijk 2.9 0.8 2.1 2013/2014 Extension of the rest home.Rue Haute Brussels 1.4 0.0 1.4 2013/2014 Renovation of a residential building with 20 apartments and 1 commercial

groundfloor.Wemmel Zijp Wemmel 19.8 7.4 12.4 2013/2014 Construction of a new rest home.Koning Albert I Dilbeek 11.3 4.0 7.3 2013/2014 Renovation and extension of a rest home.Eyckenborch Gooik 8.7 1.0 7.7 2013/2014 Extension of a rest home.

II. Subject to outstanding conditionsTervuren Tervuren 24.0 0.0 24.0 2014/2015 Construction of a new rest home.Eburon Tongeren 0.9 0.0 0.9 2013/2014 Extension of the hotel and renovation of the existing arches.Résidence du Lac Brussels 3.5 0.0 3.5 2015/2016 Construction of an apartment building.Au Bon Vieux Temps Mont-Saint-Guibert 6.6 0.2 6.4 2013/2014 Construction of a rest home.Klein Veldeken Asse 6.1 0.0 6.1 2013/2014 Extension of an assisted-living builging.Marie-Louise Wemmel 3.3 0.0 3.3 2014/2015 Renovation and reconversion of a rest home.Résidence Aux Deux Parcs Jette 0.7 0.0 0.7 2012/2013 Extension of the rest home.Résidence Cheveux d'Argent Spa 3.0 0.0 3.0 2014/2015 Extension of the rest home.Larenshof Laarne 7.4 0.0 7.4 2013/2014 Extension of the rest home and construction of a new assisted-living

builging.III. Land reservesTerrain Bois de la Pierre Wavre 1.8 1.8 0.0 - Land reserve.Platanes Brussels 0.2 0.2 0.0 - Land reserve.

IV. Acquisitions subject to outstanding conditionsKrentzen Olen 18.0 0.0 18.0 2013/2014 New rest home with 122 units.Overbeke Wetteren 13.0 0.0 13.0 2013/2014 New rest home with 113 units.

Total 152.4 18.2 134.2 Capitalised costs - 0.6 -Changes in fair value - 1.4 -Roundings - 0.1 -

On balance sheet 20.3

Development projects

26


Pre-let : 95%

Financials

Income Statement – business driven

28

14% increase of result excl. IAS 39 & IAS 40, ahead of expectations

*

Income Statement - analytical scheme Var.(x €1,000)Rental income 18,037 16,728 8%Rental-related charges -69 -28Net rental income 17,968 16,700 8%Operating charges -4,152 -4,041Operating result before result on portfolio 13,816 12,659 9%Operating margin % 77% 76%Financial result excl. IAS 39 -5,597 -5,467Corporate tax -29 -19Profit excl. IAS 39 & IAS 40 8,190 7,173 14%Number of dividend rights at year end 8,715,113 7,152,854Result per share excl. IAS 39 & IAS 40 (€/share) 0.94 1.00 -6%

31 December 2012

31 December 2011

Rental income

29

-3%

16,728 - 107 - 138 + 1.170 + 384 18,037

8% increase, of which -1% like-for-like

-11% +3% -3% Like-for-like:

Result excl. IAS 39 & 40

30

-107 -138

+1,541 -553 -145 8,190

7,173 -45 -3

-91 +671 -10 -103

Result excl. IAS 39 & 40 vs expectations

31

8,190

Income Statement – market driven

32

Non cash

Income Statement - analytical scheme(x €1,000)Profit excl. IAS 39 & IAS 40 8,190 7,173IAS 40 impact : gains on disposals of investments properties 54 0IAS 40 impact 9,926 6,139IAS 39 impact -1,792 -6,699Profit (o.p.) 16,378 6,613Weighted average number of shares outstanding (IAS 33) 7,558,301 7,130,466Net result per share (g.s. - IAS 33 - €/share) 2.17 0.93

31 December 2012

31 December 2011

Investment property under IAS 40

33

30 Jun 2007

30 Jun 2008

31 Dec 2007

31 Dec 2008

Growth through additions (in balance sheet)

Δ FV YoY = -€9,253k = -2,6%

Δ FV YoY = €6,058k = 1,9%

344 247

Δ Fair value (in income statement)

€m

30 Jun 2009

351

Δ FV YoY = -€1,183k = -0,28%

31 Dec 2009

423

30 Jun 2010

Δ FV YoY = €8,815k = 1,78%

31 Dec 2010

30 Jun 2011

504


31 Dec 2011

30 Jun 2012

583

Δ FV YoY = €9,069k = 1,58%

598

31 Dec 2012

Δ FV YoY = €8,863k = 1,51%

Hedging policy

34

Economic stability and foreseeability of interest cash outflows...

... even in spite of accounting volatility

Business driven: Avg effective interest rate of 4,0%, lower than expectations, lower than H1 PY (4,4%) and lower than FY PY (4,2%)

Market driven: Change in FV of derivatives (non cash items) under IAS 39 in 2012/2013: -€1,792k in result (vs. -€6,699k in PY) -€2,795k in equity (vs. -€9,295k in PY)

Hedging: MTM swaps under IAS 39

35

MTM < 0

MTM > 0

FY 2007/2008

FY 2008/2009 FY 2009/2010

FY 2010/2011

FY 2011/2012

HY 2012/2013

Consolidated balance sheet

36

Assets

June 2012

Investment property

Other assets included in debt-to-assets ratio

Dec 2012

Equity & Liabilities

Equity

Liabilities included

in the debt- to-assets ratio

Other liabilities

June 2012

Dec 2012

16,337

592,717

267,576

37,595

303,921 Other assets

38


7

618,777

9,071

365,461

220,642

41,752

Debt-to-assets ratio

37

49.9%

June 2012

Headroom * : - Debt increase of €156m without investments

or €390m with investments

- Drop of MTM of buildings of 42%

* Based on bank covenant of max. 60%. Based on legal max. of 65%, headroom is respectively €187m, €535m and 46%.

35.1%

Dec 2012

SPO 2012

33%

Credit facilities

38

Credit facilities


Credit facility Amount(€m)

Maturity

Club deal 100 July 2013Bilateral credit facility 30 August 2013Bilateral credit facility 30 June 2014Bilateral credit facility 15 August 2014Bilateral credit facility 30 October 2015Bilateral credit facility 30 June 2016Bilateral credit facility 30 July 2016Bilateral credit facility 15 August 2016Bilateral credit facility 30 January 2017Investment credit 2 2021Total credit facilities 312Less: debt 31.12.2012 -212Headroom 100

Net asset value

39

31 December 2012 30 June 2012 Var.

Net asset value based on fair value 36.95 37.29Dividend paid in November 2012 0.00 -1.85IAS 39 impact 4.05 4.94Net asset value after deduction of dividend, excl. IAS 39 41.00 40.38 2%

4%

Net asset value per share (in €)Based on fair value of investment properties

Nav after detachment of coupon No.10: - incl. IAS 39: €36.39 - excl. IAS 39: €40.44.

Premium at 14 Feb. 2013: 19% vs NAV at FV incl. IAS 39 7% vs NAV at FV excl. IAS 39

Value potentially not reflected in the NAV

40

Belgian REIT → highly regulated framework Assessment: Apartment buildings: valued as a whole vs individual units Senior housing: yield compression Inflation-linked contracts

Capital gains potential Pipeline: Committed Pre-let

Track record of successful financing (equity and debt)

Dividend track record

41

2007 2008 2009 2010 2011 2012 f 2013*

Capital increase of 15 October 2010

Theoretic dilution of DPS after rights issue

FY 2012/2013 dividend expectations* : €1.78/share

* Expectations 2012/2013 (see section 5.3.2 of the Securities note relating to the capital increase of 7 December 2012)

Capital increase of 7 December 2012

Shares & shareholders

Share price since IPO

43

(14 February 2013)

Spot Var. (%)Aedifica 44,03 18,43

BEL MID 3.414,53 -7,47

EPRA Belgium 984,55 -30,47

EPRA Europe 1.474,13 -44,79

Total return since IPO

44

(14 February 2013)

Var. (%)Aedifica total return 57,83 55,54

Bel real estate 1.311,68 16,01

EPRA B. total return 2.314,06 7,15

EPRA E. total return 1.485,33 -30,87

Shareholding*

45

(Since 15 October 2010)

Jubeal Fondation

Free float

* A total of 9,874,985 shares are listed on NYSE Euronext Brussels.

6,37%

88,17%

Wulfsdonck Investment via Finasucre

5,46%

Market cap & liquidity

2nd highest free float of all sicafi

4th largest liquidity amongst all sicafi (Daily average: €330k at end of Jan. 2013; €230k at end of June 2012)

5th largest market cap amongst all sicafi (± €436m)

46

Corporate governance

Transparency

NV/SA

Management in the box

Belgian Code 2009 on

Corporate Governance

Board of directors

10 directors • 8 non executive directors of

which 4 independent ones • 2 executive directors

Audit committee

Appointments &

remuneration committee

Investment committee

47

Outlook

Outlook H2 2012/2013 Furnished apartments: occupancy in Q3 slightly ahead of

expectations but market remains volatile

Hotels: most sensitive segment to economic situation

Senior housing: completion of buildings under construction (Dilbeek phase I on 18 Jan. 2013; Wépion phase II expected before year-end)

Execution of pipeline + construction works starting in Beringen, Jette and Laarne (phase III)

New investments expected in senior housing segment

Divestments of apartments: new threshold of 80% residential investments to be achieved in 2015 (current level at 79%)

49

Key priorities for future growth Existing pipeline :

€152m (horizon 2016)

• €18m already on balance sheet

• €48m in execution, not yet on balance sheet

• €86m subject to conditions precedent

• 95% senior housing

• 95% pre-let

50

Key priorities for future growth Objective for future investments :

Enhance triple net cash flows (continued focus on senior housing)

Add value-driven investments (focus on apartments in major Belgian cities)

Reap fruits of maturity (capital recycling through disposal of selected buildings)

Exploring new segments and foreign markets

51

Conclusion

Conclusion 1. Performance 2012/2013 Successful capital increase Continued ambition to grow, with focus on demographically

interesting segments Uncertain market environment Dividend expectations: €1.78 per share

53

Conclusion 2. Attractiveness for shareholders:

Strong underlying demographic trends (ageing ; growing population in major cities)

Diversification: fair value history of portfolio showing resilience and long term growth potential

Average remaining lease duration: 18 years long term inflation-linked cash flows

Dividend track record

54

New Website!

55

www.aedifica.be

Stefaan Gielens - Chief Executive Officer

Jean Kotarakos - Chief Financial Officer

Martina Carlsson - Control & Communication Manager

Aedifica SA/NV

Public REIT under Belgian Law

Avenue Louise 331 1050 Brussels

Tel: +32 (0)2 626 07 70 - Fax: +32 (0)2 626 07 71

[email protected]

www.aedifica.be

Forward looking statement To the extent that any statements made in this presentation contain information that is not historical, these statements are essentially forward-looking. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties because of a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations; changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals; regulatory approval processes and other unusual items. Consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements can be identified by the use of words such as "expects," "plans," "will," "believes," "may," "could" ,"estimates", "intends", "targets", "objectives", "potential", “outlook", and other words of similar meaning. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update any forward-looking statements. This presentation is directed to financial analysts and institutional investors and is not to be considered as an incentive to invest or as an offer to acquire shares. The information herein is extracted from the Company annual and half-year reports and press releases but does not reproduce the whole content of these documents. Only the French annual and half-year report and press releases form legal evidence.

58

Appendix

Belgian REIT (“sicafi / vastgoedbevak”)

Investment property : maximum 20% in one (group of) asset(s) Appraisal: At fair value on a quarterly basis by an independant expert No depreciation of properties

Dividend: at least 80% of cash flow paid out as dividend Leverage: limited to 65% of total assets (bank convenant: 60%) Tax status: Exit tax Limited corporate tax Withholding tax for residential REITs at 15%

60

Triple net leases

Definition Right known as “emphythéose/erfpacht” in

Belgium: Real estate contract Temporary right for tenant to fully make use of the

building Term between 27 and 99 years, irrevocable

Usual additional contractual provision The tenant incurs operating charges, R&M and

vacancy risk Yearly indexation (full CPI or health CPI)

61

Nov. 2005: Creation of Aedifica Dec. 2005: Filed as Sicafi/Vastgoedbevak + 1st acquisitions Oct. 2006: IPO

Portfolio = €186m*

Oct. 2010: SPO Portfolio = €423m*

Nov. 2012: SPO Portfolio = €594m* Pipeline = €132m

Milestones

62 * Marketable property at fair value (i.e. excl. development projects)

€186m

€435m

€606m €619m

31.12.2012

Geographical breakdown (1)

63

Unfurnished apartment buildings

Furnished apartment buildings

Geographical breakdown (2)

64

Senior housing Hotels and other

aedifica...results: h1 2012/2013 highlights occupancy rate: 97,3% for unfurnished portfolio and at...

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