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Q1 2015:
Keep on delivering
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FONCIÈRE DES RÉGIONS
> KEY EVENTS OF THE PERIOD
> OPERATING PERFORMANCE
> KEY TAKEWAYS
Q1 2015 2
CONTENTS
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Key events of the period
Q1 2015 3
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FONCIÈRE DES RÉGIONS
STRATEGIC POSITIONING
A €10.7 billion1 GS portfolio (€17.3 billion at 100%) on buoyant markets
1 focus and 2 diversifications
4
62%
18%
13%
7%
€10.7 bn GS
Q1 2015
Offices (France 43%; Italy: 19%) > Sound fundamentals; market depth > Attractive yield; value-creating pipeline
Residential Germany > Sound economy; buoyant market
> Organic growth and development potential
Hotels/Service sector > Leadership position; impressive track record
> Attractive market; partnership logic
Non-strategic
Recognised, responsive local platforms
KEY EVENTS OF THE PERIOD
Vélizy-Meudon, Paris Region Residential, Hamburg
1 At end-march 2015 post signed operations
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FONCIÈRE DES RÉGIONS
MAJOR AGREEMENT WITH TELECOM ITALIA
Q1 2015 5
An agreement leading to 3 main improvements on asset and cash-flow quality
€1.7 bn of assets
(€0.8 bn GS)
2nd largest tenant (10% of the GS rental income)
6.7-year average firm lease
maturity
Reap the benefits of the partnership strategy
Milan
8.4% of the
portfolio GS
€117 m of rental income
(€57 m GS)
1 Improved cash-flow visibility
2 Improved asset quality
3 Reduction of
Telecom Italia exposure
> +9 years of average firm lease maturity to 15 years
> 6.9% discount on the rents on average
> €38 million capex program on city center assets
(alongside with Telecom Italia)
> €126 million disposal of secondary assets
to Telecom Italia, at last appraisal values
Naples
KEY EVENTS OF THE PERIOD
Portfolio rented to Telecom Italia
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FONCIÈRE DES RÉGIONS
FRANCE OFFICES: PURSUANCE OF THE PIPELINE
Q1 2015 6
Delivery of Astrolabe in Euromed center, Marseille
> 14,000m²; €38 million (€19 million GS); 35% let, at target rents (€250/m²)
Inauguration of Steel, Paris 16th district on May 6th
> Refurbishment of 3,700m²; €36 million of investments; €600/m² target rents
Foundation stone of Silex 1: construction of 10,600m²
> Key location: at the heart of La Part-Dieu
Largest business district in Lyon of 1 million of m² of offices; vacancy rate <4%
> Delivery in 2016: €47 million; €280/m² of target rents
Committed pipeline
€518 million
62% Pre-let
71% for 2015
deliveries
Yield on cost > 7%
Value creation > 10%
€309m delivered in
2015
Silex 1, Lyon
Silex 1, Lyon
KEY EVENTS OF THE PERIOD
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FONCIÈRE DES RÉGIONS
Already €457 million of acquisitions signed (€266 million GS)
> High-quality portfolios; prime locations; 25-30% reversionary potential; privatization potential
> Pursuit of the strengthening in Berlin (€182 million) and in Dresden and Leipzig (€37 million)
1,486 units; €1,710/m² on average; 5.5% yield
> First investments in Hamburg: €239 million (€138 million GS)
High potential market driven by positive economic and demographic fundamentals
2,088 units; €1,860/m²; 5.5% average yield
DELIVERING IN GERMAN RESIDENTIAL
Q1 2015 7
€3.2 billion (€1.9 billion GS) of assets
KEY EVENTS OF THE PERIOD
Rating ImmoScout24
Investments in the best locations of high rental growth potential cities
Berlin Hamburg
> Localizations (blue spots) of the €182 million and €239 million investments in Berlin and Hamburg
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FONCIÈRE DES RÉGIONS
HOTELS: STRENGTHENING THE LEADERSHIP POSITIONING
Q1 2015 8
KEY EVENTS OF THE PERIOD
Acceleration of acquisitions in Europe: €277 million including €210 million in Germany
> 22 B&B hotels in the largest cities in Germany: €128 million (€51 million GS), 18-year leases, 6.4% yield
> 2 Motel One hotels in Berlin-Mitte and Frankfurt-Airport: €34 million (€15 million GS), 20-year leases
> First investments in management contracts: €104 million (€18 million GS)
€48 million in Germany with Louvre Hotels Group
€56 million development with Accor at Paris-Charles-de-Gaulle Airport
Major reinforcement in Hotels
> Acquisition of 14.6% of Foncière des Murs (FDM): Foncière des Régions controls (as limited partner) and holds 43% of FDM
> This transaction represents an investment of €432 million of assets
> Positive impacts:
Hotels/Service Sector represents 13% of the portfolio vs 9% at end-2014
High and secure profitability (100% occupancy rate; 94% operating margin; firm lease maturity of 6.7 years)
B&B Hotel, Paris Motel One, Berlin Accor, Paris Region Motel One, Berlin
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FONCIÈRE DES RÉGIONS
STABLE AND STRONG SHAREHOLDER STRUCTURE
Q1 2015 9
Success of the capital increase
> €255 million to finance ongoing investments
> Participated in by all the large shareholders of Foncière des Régions
> 3,917,722 new shares (i.e. 6.2% of the share capital)
Best-in-class governance, strengthened by the General Meeting
> Nomination of Delphine Benchetrit as new independent Board Member
> Upholding the rule 1 share = 1 vote
> Adoption of all the resolutions with an average approval rate of 97%
> 57% of independent members vs 50% in 2014; 36% of women members vs 29%;
29% of international members
7% 28%
8%
13%
44%
ACM
Groupe Crédit Agricole
Public
Covea
Delfin
Shareholder structure post capital
increase
Supporting the Group’s development and strategy
KEY EVENTS OF THE PERIOD
Delphine Benchetrit
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Operating performance
Q1 2015 10
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FONCIÈRE DES RÉGIONS
Q1 2015 REVENUES: +1.1% AT €132.9 MILLION
Q1 2015 11
Rental income
(€m) Change
Change on like-for-like
basis
Occupancy rate
Residual firm terms
of leases post Telecom Italia
agreement
Offices - France 57.0 -7.4% +0.3% 96.3% 5.1 years
Offices - Italy 27.2 -7.2% -2.9% 95.4 %1 10.2 years
Offices 84.2 -7.3% -0.8% 96.0% 6.6 years
Residential Germany 26.8 +10.1% +1.3% 97.7% N/A
Hotels/Service Sector 18.1 +55.5% +1.1% 100 % 6.7 years
Other (French Resi.) 3.7 N/A N/A N/A N/A
Total 132.9 +1.1% -0.1% 96.9% 6.6 years
Positive indexation
+4.1 years of maturity
-0.4% excl. Turin 2014 vacancy
+2.9% in Berlin, Dresden and Leipzig
+1 year with Telecom Italia
Indexation: +0.7%
Occupancy rate: -0.7%
Renewals: -0.1%
1 Core portfolio
+1.5% in Hotels including +2.2% for Accor portfolio
Our diversifications outperform on rental growth
OPERATING PERFORMANCE
> Increase in the firm lease maturity: +1 year to 6.6 years with Telecom Italia agreement
> Italy: negative impacts of Turin 2014 vacancy (disposal to the municipality under discussions)
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Key takeaways
Q1 2015 12
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FONCIÈRE DES RÉGIONS
KEY TAKEAWAYS FROM Q1 2015
Q1 2015 13
Strengthening of our cash-flow visibility
Telecom Italia agreement: +1 year at 6.6 years firm lease maturity for Foncière des Régions
Strengthening of our strategic positioning
€1.5 billion (€1.0 billion GS) of investments already signed including €1.2 billion of acquisitions
Dynamic investment activity in Hotels and German Residential
Resistance in our operating indicators
Stable like-for-like rents; high occupancy rate
A good start to the year
Motel One, Berlin Motel One, Berlin Via de Pretis, Naples Residential, Hamburg Silex 1, Lyon
KEY TAKEAWAYS
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FONCIÈRE DES RÉGIONS
AGENDA
Q1 2015 14
H1 2015 results: 23 July 2015
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FONCIÈRE DES RÉGIONS 15
(€ million)
100% Group Share
Q1 2014 Q1 2015 Change
(%) Q1 2014 Q1 2015
Change (%)
Change (%) LFL
% of rent
Offices France 64.7 60.3 -6.9% 61.6 57.0 -7.4% 0.3% 43%
Offices Italy 57.6 56.3 -2.2% 29.3 27.2 -7.2% -2.9% 20%
Total Offices 122.3 116.6 -4.7% 90.9 84.3 -7.3% -0.8% 63%
Hotels and Service sector 45.4 46.5 2.3% 11.7 18.1 55.5% 1.1% 14%
Residential Germany 41.1 44.5 8.3% 24.4 26.8 10.1% 1.3% 20%
Total Strategic activities 208.8 207.6 -0.6% 127.0 129.2 1.8% -0.1% 97%
Other 7.7 6.1 -21.0% 4.6 3.7 -19.0% na 3%
Total rents 216.5 213.7 -1.3% 131.6 132.9 1.1% -0.1% 100%
Total rent does not take into account rental income from Logistics (€4.9 million), reclassified in 2014 as Discontinued Operations
Q1 2015 TURNOVER
Q1 2015
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FONCIÈRE DES RÉGIONS
Paris 30, avenue Kléber 75116 Paris Tel.: +33 1 58 97 50 00
Contact Paul Arkwright Tel.: +33 1 58 97 51 85 Mobile: +33 6 77 33 93 58 [email protected]
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