record 2016 results the success of the european integrated ... · fy 2016 results 5 strategy €1.0...

Record 2016 results

The success of the European integrated

business model

16 February 2017

CONTENTS

FONCIÈRE DES RÉGIONS

>1. STRATEGIC POSITIONING

>2. REAL ESTATE ACTIVITY

>3. FINANCIAL RESULTS

>4. OUTLOOK

>APPENDIX

2FY 2016 RESULTS

Strategic positioning


THE PREFERRED EUROPEAN REAL ESTATE PLAYER FOR OUR PARTNERS

FY 2016 RESULTS 4

STRATEGY

We offer strategiclocations

Largest European citiesBusiness districts

City-centers

We offerquality buildings

Highly efficient buildings€4.0 billion pipeline

in all our asset classes

We support our tenantsin all of their needs

Manage the entire real estate value chain

Offer services & flexibility

We own, conceive & manage a European portfolio in the best locations, tailor-made to our clients’ needs


WE OFFER STRATEGIC LOCATIONS

FY 2016 RESULTS 5

STRATEGY

€1.0 billion/yearsince 2014 invested

in Paris, Berlin & Milan

Berlin

Greater Paris

Milan

€236 million in 2016



2014-2016€234 million

2014-2016€943 million

2014-2016€1.7 billion

70% of French offices

investments in 2016

70%of German Residential

investments in 2016

95% of Italy offices

investments in 2016

50%of Hotels

investments in 2016

1 Including €81 million for the acquisitions of Corso Italia & Principe Amedeo, secured in 2015 and closed in 2016-2017


WE OFFER QUALITY BUILDINGS

FY 2016 RESULTS 6

STRATEGY

Offer new and productive buildings €4.0 billion

Development pipeline in all our asset classes

German Residential

Hotels

France Offices

Italy Offices

New

Be a leader in buildings efficiency

€2.7 billion

€790 million

€260 million

€200 million

Green buildings

France Offices

Energy consumptions

France Offices

100%

65%

2008

2020

0%

2016

-40%

-28%

2020

2008

2015

x2

+50%

X7

vs 2014

vs 2014

vs 2014


SATISFY ALL OUR TENANTS’ REAL ESTATE NEEDS

FY 2016 RESULTS 7

STRATEGY

Be integratedBe flexible

Be innovative

OfficesUser experience (services, flexibility, BtoBtoC)

Hotels Identify the new popular hotel concepts and operators

German ResidentialFocus on the most dynamic areas

OfficesDevelop a new offer for the new ways of workingReinforce property management in Italy

HotelsAbility to buy and develop in lease contracts as well as management and franchise contracts

German ResidentialExpand our property development expertise

Think end-users

In-house expertise

800 people in Europe to locally manage the full value chain


CHANGE THE PORTFOLIO TO BOOST THE GROWTH PROFILE

FY 2016 RESULTS 8

STRATEGY

France offices 65%+24pts

Green offices

Italy offices

German Residential

Hotels in Europe

vs 20141

60%+16pts

Milan

48%+24pts

Berlin

+21pts

Germany 24%

-€3.8 bn disposals-€1.6 bn in 2016

+€4.7 bn investments€2.0 bn in 2016

+€1.8 bn value creation (+11%)€0.9 bn in 2016

Portfolio:+€2.9 bnIn 3 years

1 Split in Group Share; proforma of Spain Hotel portfolio acquisition and Telecom Italia disposal signed in 2016 and closed in 2017

21 %German Residential

16 %Hotels in Europe

45 %France Offices

15 %Italy Offices

3 %Non Strategic

2016€19.3 bn

€12.0 bnGroup Share1

Greater Paris81%

Milan 60%

Berlin 48%

France45%

+16pts

Spain 16%


2016 RECORD RESULTS: THE SUCCESS OF OUR BUSINESS MODEL

FY 2016 RESULTS 9

STRATEGY

PORTFOLIO RENTS

NAV RECURRINGNET INCOME

+9%+5% LFL

+7%+13%

€12 BILLION

EPRA NAV€6.0 BN;

€87/SHARE€356 MILLION €5.3 /SHARE

+4.5%+0.2% LFL

€574 MILLION

1 IPD Index methodology: rental and capital yield (change in value net of capex)

+9.1% Real Estate total return in 2016 (+7.8%/year since 2010)1

Change the portfolio profile while maintaining a high risk-adjusted return

Real Estate Activity

> France Offices

> Italy Offices

> German Residential

> Hotel Real Estate

France Offices


FRANCE OFFICES: A POSITIVE ENVIRONMENT

FRANCE OFFICES

12FY 2016 RESULTS

CB21 Tower, La Défense

Portfolio

€6.2 billion (100%)

€5.3 billion (GS)

Paris Region: increasing take-up and decreasing vacancy rate

> +7% increase in the take-up; +23% for > 5,000 m² buildings

> Focus on Grade A buildings (72% of the demand for large buildings)

> Lowest vacancy rate since 2009 (6.7%)

> Limited future supply and lack of new offer (only 15% of the offer)

Dynamic investment activity and high spread vs risk-free rates

> €24 billion investments, above 5-year average

Sources: Immostat, CBRE, JLL


2016: A STRONG LETTING ACTIVITY

FRANCE OFFICES

13FY 2016 RESULTS

Benefit from our partnership strategy

Portfolio

€6.2 billion (100%)

€5.3 billion (GS)

450,000 m²

of renewals & renegotiations

+ 0.8 %Vs previous rents With Orange, Thales,

Cisco, EDF, etc.

43,100 m²

of new leases

9-year maturity

Development pipeline attracts tenants

€12 million of new rents

Orange€1.4 bn portfolio

New lease renegotiation on 22% of the portfolio

Cisco11,500 m²

Issy-les-Moulineaux – Greater ParisLease renewal (6-year firm)

Thales46,750 m²

Velizy – Greater ParisLease extension (10.5-year firm)


2016 LETTING ACTIVITY: ATTRACT NEW PARTNERS

FY 2016 RESULTS 14

FRANCE OFFICES

Silex1

A new referencein Lyon CBD

Delivery Q1 2017

10,700 m²

86% let

Unique location in Lyon

Redevelopment-extension of a former EDF asset

€47 million cost

>30% value creation


2016 LETTING ACTIVITY: ATTRACT NEW PARTNERS

FY 2016 RESULTS 15

FRANCE OFFICES

EDO

Value-added acquisition

Attractive location in Greater Paris

Acquisition in 2011 (7.9% yield)

Redevelopment-extension (+4,200 m²)

€83 million cost

Delivery Q2 2017

10,800 m²

100% prelet

>50% value creation


2016 INVESTMENT ACTIVITY: €290 MILLION ADDITIONAL OFFICES

FRANCE OFFICES

16FY 2016 RESULTS

6 new deliveries in 2016

> 46,700 m² in Greater Paris and Marseille

> 6.7% average yield on cost; 94% let for 9-year firm

> c.20% value creation

Vinci headquarters – Rueil Malmaison

> Repeat the positive successful experience of EDO

> 38,000 m² in one of the major business districts of Greater Paris

> €129 million; 7.8% yield for 4 years; redevelopment & extension afterwards

Secure the immediate cash-flowsPrepare the future

ACQUISITIONS DELIVERIES

€160million

7.8% YIELD

€130 million

6.7% YIELD

Portfolio

€6.2 billion (100%)

€5.3 billion (GS)


2017: RELY ON OUR IN-HOUSE CAPACITY TO GROW

FRANCE OFFICES

17FY 2016 RESULTS

Positive rental outlook for 2017

> Some letting opportunities in attractive areas:

Paris CBD (Delcassé), Levallois-Perret (Thaïs), Marseille (Euromed)

> Positive like-for-like growth to come in 2017

Portfolio

€6.2 billion (100%)

€5.3 billion (GS)

Record level of deliveries in 2017

Committed pipeline:

€560 million

Managed pipeline:€2.1 billion

2017: 8 deliveries in Paris, Lyon & Marseille€404 million; 80,900 m²

330,000 m² & €1.5 billionof deliveries since 2011

Thaïs, Levallois-Perret (Greater Paris)

0

100

200

300

400

500

2011 2012 2013 2014 2015 2016 2017


DELIVERIES 2017: ART&CO – PARIS

FY 2016 RESULTS 18

FRANCE OFFICES

Art&Co

Value-added acquisition

Strategic location in Paris - Gare de Lyon

13,500 m² of offices

€130 million cost

7.3% yield

Acquisition in 2009

Redevelopment for Q4 2017

>20% value creation target


A NEW OFFER BY FONCIÈRE DES RÉGIONS

FY 2016 RESULTS 19

FRANCE OFFICES

Launch of a new third-place activity by Foncière des Régions

> Anticipate the new trends in workspace environments

> Respond to our clients’ need for high flexibility

> Reinforce the attractiveness of our buildings

> Integrate a new know-how

Offer a new service to our clients and their network

> Third-place activity proposed on our relevant buildings with:

1. flexible spaces

2. coworking spaces

3. immersive meeting rooms and tailor-made services

> A complementary offer (between 1,500 and 5,000 m²) to the commercial lease

> Targets: our Key Accounts and their networks; SME; start’ups

> A first site to open in Marseille in 2017 and between 10 / 15 sites by 2020 Services and commonspaces

Flexible spaces

Coworkingspaces


A NEW OFFER BY FONCIÈRE DES RÉGIONS

FY 2016 RESULTS 20

FRANCE OFFICES

Coworking

Networking, emulation

Flexible spaces

Plug & Play, efficiency

Services

Community manager, on demand

Riverside, Toulouse Art&Co, Paris Euromed Center, Marseille


POST 2017: THE STORY CONTINUES

FY 2016 RESULTS 21

FRANCE OFFICES

Citroën, Paris 17th district

More focus on GreaterParis and Major

regional cities

Silex2, Lyon CBD

More developmentcapacities

Delcassé, Paris CBD

Positive rental trend

Italy Offices


ITALY OFFICES: AN IMPROVING MARKET

ITALY OFFICES

23FY 2016 RESULTS

Portfolio

€4.1 billion (100%)

€2.1 billion (GS)

Milan: strong take-up level and increasing rents

> +12% in take-up, driven by large transactions (> 1,000 m²) & Grade A buildings (72%)

> Obsolescence issue:

high vacancy rate (10.5%) but less than 25% of Grade A buildings

Investments: a record year

> €9.1 billion investments (+17%); €2.3 billion in offices in Milan

> Driven by international investors

Rented portfolio

Developments

CBD

Centre

Semi-centre

Periphery

Porta Nuova

A €2.1 billion1 Milan portfolio to benefit from an improving market

Sources: CBRE, C&W, JLL; 1 €1.1 billion Group Share

Via Principe Amedeo, Milan


2016: A TURNING POINT

ITALY OFFICES

24FY 2016 RESULTS

Capex plan on vacant assets€72 million => €19 m extra RNI2

1 post signed transaction to be closed early 2017; 2 €38 million & €10 million Group Share

Portfolio

€4.1 billion (100%)

€2.1 billion (GS)

+2.4%

Rental like-for-like growth

on portfolio ex-TI

% of the portfolio

in Milan

80%

60%

2015

2020

43%

2016

Focus on Milan

% of Telecom Italia

exposure in the portfolio

20%

27%€0.9 billion

2020

41%€1.6 billion

2016

2015

Diversify the tenant base

% of

Green offices

50%

39%

2015

2020

22%

2016

Accelerate quality improvement

Increase the occupancyin the portfolio ex-TI

In advance on all our 2020 targets1


ITALY OFFICES

ASSET ROTATION: A TRANSFORMING YEAR FOR THE PORTFOLIO

25FY 2016 RESULTS

Portfolio

€4.1 billion (100%)

€2.1 billion (GS)

+€145 million1 investments securedFocus on Milan

In

> 3 assets; 40,710 m² of offices nearby subway stations

> 6.6% yield

> 8 projects; 222,700 m² of offices

> €790 million3; c.90% in Milan; €325 million committed

Acquisitions: €111 million2 in Milan

Development pipeline: x2 vs 2015

Via Cernaia, Milan

Group Share figures: 1 €76 million; 2 €58 million; 3 €412 million; 4 €366 million; 5 €323 million

Partnership agreement on TI portfoliosigned with two major international investors

> 40% share of the portfolio to Crédit Agricole Assurances & EDF Invest

> Equivalent of €618 million5 of underlying assets; at June-appraisal values

> To be close in Q1 2017

-€701 million4 Telecom Italia and non core disposals

Out

Via de Pretis, Naples


SYMBIOSIS: THE MAJOR OFFICE LETTING IN MILAN

FY 2016 RESULTS 26

ITALY OFFICES

16,000 m² pre-let+3,000 m² in option

10.5-year

New Fastwebheadquarters

Cost including land

€86 million1

6.8%

1€45 million Group Share

Symbiosis

The start of a new innovative

Milan office district

Potential for 120,000 m² offices

South of Milan

€460 million cost including land


2017: OPEN A NEW CHAPTER OF GROWTH & VALUE CREATION

ITALY OFFICES

27FY 2016 RESULTS

Increase exposureto Milan

€200 million1 investments€120 million2 of deliveries

Increase portfolio quality

Exit from non core offices & from retail

Internalize the Real Estate value chain

Full control of the property management platform

1€104 million Group Share; 2€63 million Group Share

German Residential


GERMAN RESIDENTIAL: SOUND MARKETS FUNDAMENTALS

GERMAN RESIDENTIAL

29FY 2016 RESULTS

Portfolio

€4.0 billion (100%)

€2.5 billion (GS)

Prime location

Good location

Averagelocation

Basic location

Green area

A €1.9 billion1 Berlin portfolio focused on the best locations

A healthy & growing market with a lot of potential

> Strong economic fundamentals

> Positive demographic trends:

• increasing households (+2.5% by 2030)

• Stronger growth for the largest cities such as Berlin

> Significant supply shortage

> Berlin in 2016: +6% market rents, +10% market prices

Source: Engel & Völkers Residential

1€1.2 billion Group Share

74%

5%

21%


1.8%

2.4%

3.6%

4.9%4.4%

4.6%

1.4%1.6%

2.8%

2014 2015 2016

2016: ACCELERATION OF THE RENTAL GROWTH

GERMAN RESIDENTIAL

30FY 2016 RESULTS

MoreBerlin

Accelerating like-for-like growth thanks to qualitative allocation and rotation

A lot of reversionary potential

38 %Indexation

55 %Reletting

7 %Modernization

Mainly through relettings

Total

BetterNRW

Berlin

40%

Dresden & Leipzig

20-25%

Hamburg

25-30%

NRW

10%

Portfolio

€4.0 billion (100%)

€2.5 billion (GS)


2016: SUCCESSFUL INVESTMENT STRATEGY

GERMAN RESIDENTIAL

31FY 2016 RESULTS

A strong year of asset rotation to boost the quality and growth prospect of the portfolio

Acquisitions€476 million1

Disposals€353 million2

1€321 million Group Share, including €70 m (€44 m GS) close in 2017; 2 €215 million Group Share

Price: €1,820/m²Rents: €7.4/m²

4.8% yield73% Berlin city-center 6.7% yield

11% margin

Tier 2 cities in NRW

Maintain attractive investment metrics despite a competitive market

48 %Berlin

8%Dresden & Leipzig

12%Essen (NRW)

8%Hamburg

€4.0 billionPortfolio

+11%

8%Duisburg (NRW)

4%Mulheim (NRW)

4%Oberhausen (NRW)

2%Düsseldorf (NRW)7%

Others (NRW)40% Reversionary

potential

Vs 28% in 2014

Vs 19% in 2014

OutIn

Portfolio

€4.0 billion (100%)

€2.5 billion (GS)


AN ACTIVE YEAR IN ACQUISITIONS AT ATTRACTIVE CONDITIONS

GERMAN RESIDENTIAL

32FY 2016 RESULTS

1,590 residential units in Berlin,

Hamburg & Dusseldorf

€217 million; €1,740/m²

City-center

1,020 residential units in Berlin

€183 million; €1,870/m²

Mainly in Mitte, Friedrichshain, Steglitz-

Zehlendorf, Prenzlauerberg and Postdam

A real estate complex in Mitte district

€76.4 million; €1,940/m² (for residential)

117 housing units

10,700 m² of offices and retail

238-room 4-star Novotel hotel

Portfolio

€4.0 billion (100%)

€2.5 billion (GS)


Rent: €6.7/m²Price: €2,090/m²

for Berlin portfolio

GERMAN RESIDENTIAL

2017: NEW ACQUISITION IN BERLIN

331 €131 million Group Share

FY 2016 RESULTS

€202 million portfolio1

Berlin (76%) & Leipzig

A quality portfolio with

high growth potential

17% vacancy

4.6% yield after reletting

+45% reversionary potential

27%Mitte

14%Others Berlin

26%Neukölln

24%Leipzig

76% in Berlin14%

Friedrichshain-Kreuzberg


2017: A NEW SOURCE OF GROWTH THROUGH THE DEVELOPMENT PIPELINE

GERMAN RESIDENTIAL

34FY 2016 RESULTS

Focus on Berlin

Roof extensionNew buildings

Redevelopments

Start in 2017

1/3 to be launched

1€122 million Group Share

1,100 units; 70,000 m²

€200 million1 including land; 10% of Berlin portfolio

6% yield on cost; 40% value creation

In-house know-howHigh yield and value creation

Roof extensions

Development backyard

Portfolio

€4.0 billion (100%)

€2.5 billion (GS)


2017: THE GROWTH STORY GOES ON

GERMAN RESIDENTIAL

35FY 2016 RESULTS

Further acquisitions in Berlin

Embedded growthStrong reversionary potential

Like-for-like growth target >2016 level

More to comePrivatizations in Berlin

New development pipeline

FY 2016 RESULTS 36

Hotel Real Estate in Europe


HOTEL MARKET: GROWTH & MUTATIONS

HOTELS IN EUROPE

37FY 2016 RESULTS

Portfolio

€4.4 billion (100%)

€1.6 billion (GS)

1Revenue Per Room; source: MKG; 2Vs 2014, Milan World‘s fair & The Venice Biennale in 2015

RevPar1 evolution in Europe in 2016

Paris-14%

France ex-Paris+3%

Spain+13%

Germany+4%

Italy2

-6%

Belgium-13%

Netherlands+6%

Portugal+11%

+12%+11%

+3%

-14%

-12%

+6%+5%

+6%

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2010 2020 2030

Europe Asia-Pacific North AmericaMiddle East & Africa Central & Latin America

More growth in Europe

1st tourism destination worldwideIncreasing tourism arrivals

Better GDP growth

A transforming market

Mutations in hotel operatorsNew competitors but increasing regulation

2016: growth & contrasted performances2017: positive trends

European hotel market Long term trends

International tourist arrivals in 2010 and 2020-30 UNWTO forecasts (in million / year)

trends for 2017

Europe+57%


HOTELS IN EUROPE

MAJOR ACQUISITION OF A PORTFOLIO IN SPAIN

38

A quality portfolio

Quality 4*-5* hotels

Central locations; >40% Ebitdar margin

Critical size in Spain & by operator

New partners

1 Source MKG; 2 €270 million Group ShareFY 2016 RESULTS

€542 million2

€143 K/room

35%Barcelona

7%Valencia

39%Madrid

19%Others

74% in Madrid & Barcelona

(in value)

19 hotels Barcelona & Madrid

3,800 roomsClosing march 2017

6% potential yield

In a fast growing market

8% RevPar growth expected in 20171

3rd most popular destination for tourism

Barcelona: among the leaders for conventions

AC Forum, Barcelona

FONCIÈRE DES RÉGIONS1 €541 million Group Share; including Spain and German portfolios, closed in 2017; 2 €192 million Group Share; 3 €348 million Group Share; 4 €180 million Group Share

HOTELS IN EUROPE: A TRANSFORMING YEAR

HOTELS IN EUROPE

39FY 2016 RESULTS

€361 millionDisposals4

45 hotels

in France

OutIn

€1.7 billionAcquisitions1

€988 million2

Operating properties

€717 million3

Lease properties

Madrid

Barcelona

>40%Ebitdar margin

Berlin

>30%Ebitdar margin

<90€Average daily price

in Berlin

Mainly 4*-5* hotels 15%Ebitdar margin

<100€Average daily price

In Barcelona & Madrid

Mainly 4* hotels

90€Average daily price

Mainly secondary locations

Portfolio

€4.4 billion (100%)

€1.6 billion (GS)


45 %France

24%Germany

16%Spain

12%Belgium

HOTELS IN EUROPE

2016: TRANSFORMATION OF THE PORTFOLIO

More Hotel operators

partners

More Hotel Real Estate 14%

55%More Europe

40FY 2016 RESULTS

X2.2

X2.5

X3.4

1 Proforma of the Spain portfolio, closed in March 2017, hotels only

Since 20141

Hotel exposure in FdR portfolio

Hotel exposure in Europe

Hotel operators 35%AccorHotels

19%B&B

17%Others (10)

7%P&V

7%NH 6%

CarlsonRezidor

5%Hotusa

4%Barcelo

Golden Tulip, Marseille

Portfolio

€4.4 billion (100%)

€1.6 billion (GS)


HOTELS IN EUROPE

17 PARTNERS FOR FURTHER INTERNAL GROWTH

41FY 2016 RESULTS

17 hotel operators25 brands

Acceleration of the European partnership

4 developments on going

1st Meninger in Paris, Lyon, Munich & Milan

12 to 20-year leases

960 rooms€69 million cost including land

In France, Germany & Italy

Partner of B&B Hotels growth story for the past 7 years

12-year maturity(+10 years)

766 roomsParis, Lyon, Berlin

€30 million

5 developments on going

2017: major lease renewal on 158 hotels

(€563 million in value)


2017: INTEGRATE, DEVELOP, GROW

FY 2016 RESULTS 42

HOTELS IN EUROPE

Madrid

More focus on main European cities

Paris


Berlin

Positive like-for-likerental trend

Financial results


A LANDMARK YEAR IN OUR QUALITATIVE ASSET ROTATION STRATEGY

FY 2016 RESULTS 44

FINANCIAL RESULTS

Offices France

More developments

€339 million

€292 million GS

Offices Italy

More Milan

€121 million

€63 million GS

German Residential

More Berlin

€406 million

€277 million GS

In

€2.0 billion in 2016(1.2 billion Group Share1)

6.3% Yield

1 GS: Group Share

Hotels

More large European cities

€1.2 billion

€244 million GS

More to come in 2017€762 million (€390 million Group Share) acquisitions secured

in Hotels (Barcelona, Madrid) and Residential (Berlin)

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj5lpay77jNAhUBuhoKHZJID60QjRwIBw&url=http://www.jllproperty.it/it-it/milano/periferia/immobile-uffici-per-in-locazione/light-building/21408&psig=AFQjCNHmMSa0-6lHhlCoeGRzRKY_ADMW8Q&ust=1466589925266137

http://www.google.it/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwj5lpay77jNAhUBuhoKHZJID60QjRwIBw&url=http://www.jllproperty.it/it-it/milano/periferia/immobile-uffici-per-in-locazione/light-building/21408&psig=AFQjCNHmMSa0-6lHhlCoeGRzRKY_ADMW8Q&ust=1466589925266137


A LANDMARK YEAR IN OUR QUALITATIVE ASSET ROTATION STRATEGY

FY 2016 RESULTS 45

FINANCIAL RESULTS

Out

€1.6 billion in 2016(€1.0 billion Group Share)

5.3% yield; 8% margin

ResidentialFrance€191 m

€117 m GS

Healthcare€298 m

€149 m GS

Car Parks€138 m

€82 m GS

Logistics€101 m

Non strategic activities

Hotels non coreFrance€361 m

€180 m GS

Residential in NRWGermany€353 m

€215 m GS

Non core assets

More to come in 2017Share of 40% of Telecom Italia portfolio

Secured, closing Q1 2017€618 million (€323 million group Share) equivalent assets


KEY STRATEGIC MOVES TO DRIVE IMMEDIATE AND FUTURE PERFORMANCE

FY 2016 RESULTS 46

FINANCIAL RESULTS

1 IPD Index methodology: rental and capital yield (change in value net of capex)

Better asset quality

Higher growth potential

Lower rental yield

A sustainable and attractive return

Real Estate Total Return in our portfolio in 20161

Net rental yield

Net value growth

ItalyOffices

Portfolio

GermanResidential

portfolio

Hotelsportfolio

+10%

France Offices

portfolio

+17%

Deliveries since 2014

+7.2%

+18%

Germanportfolio

+6.4%

+9%

Milan Portfolio

Excluding TI

+11.4%

+15%

Berlinportfolio


+4.8% LIKE-FOR-LIKE IN VALUE AT END-2016

FY 2016 RESULTS 47

FINANCIAL RESULTS

Committed pipeline:

+20% LFL

France Offices

Milan ex-TI: +6% LFL

Italy Offices

Berlin: +12.4% LFL

German Residential

Pipeline: +17% LFLAcquisitions:

+13%

Hotels

(€ million, excluding duties)

Value2015100%

Value2016100%

Value2016

Group Share

Like-for-likechange

Yield2015

Yield2016

% ofportfolio

Offices - France 5 589 6 183 5 318 5.7% 6.0% 5.7% 44%

Offices - Italy 3 905 4 094 2 139 1.8% 5.7% 5.7% 18%

Residential Germany 3 603 4 004 2 477 8.4% 6.0% 5.4% 21%

Hotels & Service sector 3 663 4 413 1 631 1.7% 5.9% 5.7% 14%

French Residential & Logistics

772 489 323 -0.7% 2.8% 2.9% 3%

Others 227 103 80 n/a n/a n/a 0%

Portfolio 17 759 19 286 11 967 4.8% 5.8% 5.5% 100%


A BETTER DEBT STRUCTURE, ILLUSTRATION OF THE PORTFOLIO IMPROVEMENT

FY 2016 RESULTS 48

FINANCIAL RESULTS

Group share data

40%

15%

40%

4% Investor mortgages

Bonds

Corporate credits

Bank mortgage loans

Strong diversification in financing

55% unsecured

debt

1st Green Bond issue: reward of an ambitious ISR strategy

> €500 million Green Bond; 10-year

> 1.875% coupon (margin of 137 bps above the swap rate)

> More than 5 times oversubscribed

A dynamic financing activity

> €2.9 billion of new financings (1.9 billion Group Share)

> 9-year average maturity

Debt maturities under controlIncreased maturity to 5.7 years

(in €billion)

285

699 760

432

1 341

393 510

529

2017 2018 2019 2020 2021 2022 2023 2024 >2024

1 736

44.6%2.2%

45.4%2.8%

2016

2015

LTV: 46.1%Cost: 3.3%

2014

5.7 years3.6x

5.0 years3.0x

2014

2016

Maturity: 4.1 yearsICR: 2.8x

2015

Lower LTVLower cost of debt

Longer maturityHigher ICR


EPRA NAVEnd-2015

EPRA NAVEnd-2016

+€356 millionRecurringNet Icome

-€287 millionDividend

+€119 millionPublic Exchange

Offer on FDM

+€529 millionProperty values

increaseand disposal margin

-€79 millionHedge

restructuringand bonds buy back

+€28 millionProfit on

acquisition of Beni Stabili's

share

+€43 millionOther

STRONG INCREASE IN EPRA NAV IN 2016

FY 2016 RESULTS 49

FINANCIAL RESULTS

EPRA NAV supported by recurring net income and increase in values

> EPRA NAV: €5,995 million (+12.7%) and €86.8 per share (+9.3%)

> EPRA NNNAV: €5,332 million (+15.7%) and €77.2 per share (+12.2%)

EPRA NAV

€5.3 bn€79.4/share

EPRA NAV€6.0 bn

€86.8/share


+4.5% INCREASE IN 2016 REVENUES

FY 2016 RESULTS

FINANCIAL RESULTS

50

€millionRental income

100%

Rental income

Group ShareChange

Change on like-for-like basis

Occupancy rateResidual firm

terms of leases (in years)

Offices - France 274.8 249.7 +4.9% -0.5% 95.6% 5.6

Offices - Italy 200.2 102.5 +0.3% +0.2% 95.5% 9.0

Of which Telecom Italia offices 98.8 50.8 -5.3% -1.9% 100% 13.8

Of which portfolio ex Telecom Italia 101.5 51.7 +6.7% +2.4% 91.6% 4.6

Residential Germany 212.5 131.6 +13.5% +3.6% 98.2% n.a.

Hotels/Service Sector 190.5 81.4 +1.7% -2.9% 100% 10.4

Other (French Resi.) 15.2 9.3 n.a. n.a. n.a. n.a.

Total 893.3 574.4 +4.5% 0.2% 96.7% 7.2

1

2

3

4

6

1 • Renewals: -0.1%; Indexation: +0.2%; Occupancy rate: -0.6%

2

3 6

• Impact of 2015 lease renegotiation and disposals

• First positive effects of the plan on vacant assets

(+4.3 pts in occupancy rate)

• Renewals: +0.4%; Indexation: +0.2%; Occupancy rate: -0.4%

5

7 • Increase in occupancy (+0.4 pt vs 2015)

4 • Acquisitions in Berlin

7

5 • AccorHotels: -7.3% of which Paris: -12%; French Regions: +2%


(€ million)Group share

2015 2016 Change%

Net rental income 505.3 526.3 21.0 4.2%

Net operating costs -55.5 -60.3 -4.8

Income from other activities 18.9 9.6 -9.3 -49.0%

Cost of net financial debt -155.3 -129.1 26.2 -16.9%

Recurring net income from equity affiliates 11.2 13.6 2.4 21.2%

Income from non consolidated affiliates 0.2 0.0 -0.2

Recurring tax -1.9 -4.3 -2.4

Profits or losses on discontinued operations 10.0 0.4 -9.6 -96.0%

Recurring net income 332.9 356.2 23.4 7.0%

Recurring net income per share 5.07 5.27 0.20 3.9%

Fair value adjustment on real estate assets 347.6 465.2 117.6 33.8%

Fair value adjustment on financial instruments -105.3 31.4 136.7 -129.8%

Net Result on disposals 0.1 34.6 34.5 na

Other -48.7 -65.6 -16.9 34.8%

Non-recurring tax & deffered tax -22.1 -34.3 -12.2 55.0%

Profits or losses on discontinued operations -22.9 -4.6 18.3 -79.9%

Net income 481.6 782.8 301.3 62.6%

STRONG INCREASE IN RECURRING NET INCOME AT END-2016: +7%

FY 2016 RESULTS

FINANCIAL RESULTS

Growth in the portfolio

Less property development fees

Lower cost of debt

Hotel operating properties

Exit from Logistics

51


+4% INCREASE IN THE RECURRING NET INCOME PER SHARE

FY 2016 RESULTS

FINANCIAL RESULTS

Lower rental yield

Positive impact of acquisitions & deliveries in Offices

Strengthening in German Residential

Lower average cost of debt

Lower property development fees

52

€5.07/share

2015

€332.8 million

€5.27/share

2016

€356.2 million

Average number of fully diluted shares: 65,670,922 for 2015; 67,633,972 for 2016

+3.9%


INCREASE IN DIVIDEND TO €4.4 PER SHARE

FY 2016 RESULTS 53

FINANCIAL RESULTS

1 Proposed by the 26 April 2017 Shareholders’ Meeting; 2 Based on a stock-market price of €77.99 as of February 14th 2016

Dividendyield

5.6%2

€4.401

per share

+2.3%

Secured level

Payout ratio83%

Via Principe Amedeo, Milan


2017: SUCCESS OF THE CAPITAL INCREASE TO KEEP GROWING

FY 2016 RESULTS 54

FINANCIAL RESULTS

Capacity to seize opportunities for growth in the major European cities

Multiple times covered

€78.79/share price: 2% premium on EPRA NNNAV

Since end-2015: +12% cumulated increase in the Group’s share capital

Acquisitions: €390 million Group Share already secured for 2017

Development pipeline: €250-300 million capex for 2017

Together with a continuous active disposal policy

In January 2017

€400 millioncapital increase

To finance acquisitions & development

Eurostars Gran Marina, Barcelona

Outlook


GUIDANCE 2017: RECURRING NET INCOME GROWTH >5%

FY 2016 RESULTS 56

OUTLOOK

LTV policy

40-45%

Growth in rents

Positive Like-for-like

Recurring Net Income

>5% in €million


2017: INCREASE OUR EUROPEAN FOOTPRINT

FY 2016 RESULTS 57

OUTLOOK

More focus on European cities

More rentalupside

Stronger growth & value creation profile

Symbiosis, Milan Berlin Art&Co, Paris


Park Inn, Berlin


FINANCIAL AGENDA

FY 2016 RESULTS 58

AGENDA

Q1 2017: 26 April 2017

H1 2017: 20 July 2017

Q3 2017: 26 October 2017

Appendices


A STRATEGY STRENGTHENED BY SOUND INDICATORS

Group share data

APPENDICES

Historically high occupancy rates

2009

95.4% 94.8% 95.8%

2010 2011 2012

95.5%

2013

96.0%

2014

96.7%

2015

97.1%

2016

96.3%

Firm lease expirations as % of annualised rental income

Commercial portfolio (77% of total rents Group Share)

Record firm term of leases

2009

5.8 6.1 6.0

2010 2011 2012

5.5

2013

5.8

2014

7.2

2015

5.8

7.3

2016

Growth in value Change in LFL vs. N-1

2009

+5.3%

+1.3%

2010 2011 2012

-0.3%+0.5%

2013

-3.6%

2014

+4.8%

2015

+2.1%

+4.4%

2016

Rent: at like-for-like scopeChange in LFL vs. N-1

+3.3%

2010

+0.6%

2011 2012

+2.1%+1.2%

20132009

+2.2%

+0.2%

2014 2015

+0.2% -0.1%

2016

> Ability to keep the tenant in place

> Occupancy rate track record in the development pipeline

> Anticipate disposals

> Partnership strategy

> Lease maturity in Hotels: 10.4-year

> Positive renewal impacts

> Stable occupancy rate

> Low inflation environment> Dynamic investment market

> Asset management and development pipeline value creation

60FY 2016 RESULTS


COMMITTED PIPELINE: 26 PROJECTS FOR €705 MILLION GROUP SHARE

FY 2016 RESULTS

APPENDICES

61

Projects, Group Share Location ProjectSurface*

(m²)

Target rentoffices parts(€/m²/year)

Pre-leased(%)

Total Budget**

(M€)

Target Yield

Progress

Capex to be invested(Group Share)

Offi

ces

Fran

ce

Silex I Lyon Construction 10 700 m² 280 86% 47 6,5% 85% 5

Euromed Center - Bureaux Hermione (FdR share 50%) Marseille Construction 10 400 m² 265 0% 14 >7% 85% 2

Thaïs Levallois - Greater Paris Construction 5 500 m² 480 0% 40 6,2% 80% 4

Euromed Center - Bureaux Floreal (FdR share 50%) Marseille Construction 13 400 m² 265 0% 18 >7% 70% 5

O'rigin Nancy Construction 6 300 m² 195 81% 20 6,2% 55% 7

EdoIssy Les Moulineaux -

Greater ParisRegeneration-

Extension10 800 m² 430 100% 83 6,0% 55% 19

ENEDIS - New Saint Charles Reims Construction 10 300 m² 141 100% 19 >7% 20% 13

Art&Co Paris Regeneration 13 500 m² 520 5% 130 5,0% 20% 20

Total 2017 80 900 m² 407 44% 372 6,0% 49% 75

Hélios Lille Construction 8 700 m² 160 0% 21 >7% 10% 16

Riverside Toulouse Construction 11 000 m² 195 0% 32 7,0% 20% 23

Ilot Armagnac (FDR share 35%) Bordeaux Construction 31 700 m² 200 29% 35 6,5% 5% 33

Total deliveries 2018 51 400 m² 189 11,6% 89 6,8% 12% 72

Total - Offices France 132 300 m² 365 38% 460 6,1% 42% 147

Offi

ces

Italy Milan, via Colonna Milan Regeneration 3 500 m² 260 0% 8 5,1% 9% 2

Milan, via Cernaia Milan Regeneration 8 300 m² 420 0% 30 5,2% 21% 6

Turin, corso Ferrucci 112 Turin Regeneration 45 600 m² 130 22% 46 5,7% 26% 13

Total deliveries 2017 57 400 m² 246 12% 84 5,5% 22% 21

Milan, P. Amedeo Milan Regeneration 7 000 m² 460 0% 30 5,1% 0% 7

Milan, P.zza Monte Titano Milan Regeneration 6 000 m² 190 100% 12 5,0% 9% 4

Symbiosis A+B Milan Construction 19 000 m² 300 80% 45 6,8% 24% 21

Total deliveries 2018 32 000 m² 340 55% 86 6,0% 14% 33

Total - Offices Italy 89 400 m² 294 34% 170 5,7% 18% 54

* 100% usable area excl. car park** Total cost including land value & financial costs*** Yield on total rents including car parks, restaurants, etc.


COMMITTED PIPELINE: 26 PROJECTS FOR €705 MILLION GROUP SHARE

FY 2016 RESULTS

APPENDICES

* 100% usable area excl. car park** Total cost including land value & financial costs*** Yield on total rents including car parks, restaurants, etc.

62

TOTAL COMITTED PIPELINEIn Group Share

Surface*(m²)

Target rent(€/m²/year)

Pre-leased(%)

Total Budget**

(M€)Target Yield*** Progress

Capex to be invested(Group Share)

Total - Offices France 132 300 m² 365 38% 460 6,1% 42% 147

Total - Offices Italy 89 400 m² 294 34% 170 5,7% 18% 54

Total Hotels 2 028 rooms na 100% 75 6,2% 47% 39

Total 221 700 m² na 44% 705 6,0% 37% 240

Projects, Group Share

Location ProjectSurface*

(m²)

Target rent on offices parts(€/m²/year)

Pre-leased(%)

Total Budget**

(M€)

Target Yield***

ProgressCapex to be invested

(Group Share)

Hot

els

B&B Lyon Lyon - France Construction 113 rooms na 100% 2 5,5% 33% 1

Club Med Samoëns France Construction 420 rooms na 100% 12 5,9% 60% 5

B&B Berlin Berlin Construction 140 rooms na 100% 6 7,0% 34% 4

Total 2017 673 rooms 100% 20 6,2% 50% 10

B&B Chatenay Malabry Chatenay Malabry - Greater Paris Construction 255 rooms na 100% 2 6,3% 23% 2

B&B Nanterre Nanterre - Greater Paris Construction 150 rooms na 100% 3 6,2% 70% 1

Motel One Porte Dorée Paris Construction 173 rooms na 100% 9 6,2% 66% 3

Meininger Munich Munich - Allemagne Construction 420 rooms na 100% 15 6,0% 55% 7

Total 2018 998 rooms na 100% 29 6,1% 58% 12

Meininger Porte de Vincennes

Paris Construction 249 rooms na 100% 23 6,2% 35% 15

B&B Bagnolet Paris Construction 108 rooms na 100% 2 6,3% 16% 2

Total >2019 357 rooms na 100% 25 6,2% 34% 17

Total Hotels 2 028 rooms na 100% 75 6,2% 47% 39

Total 221 700 m² na 44% 705 6,0% 37% 240


MANAGED PIPELINE: 18 PROJECTS FOR €2.4 BILLION GROUP SHARE

FY 2016 RESULTS

APPENDICES

* 100% usable area excl. car park 63

Projects Location ProjectSurface*

(m²)Delivery

timeframe

Offi

ces

Fran

ce

Cité Numérique Bordeaux Regeneration - Extension 18 600 m² 2020

Opale Meudon Greater Construction 30 000 m² 2019

Campus New Vélizy Extension (QP FdR 50%) Vélizy - Greater paris Construction 14 000 m² 2018

ENEDIS Angers Angers Construction 4 700 m² 2018

Silex II Lyon Regeneration - Extension 30 900 m² 2017

Canopée Meudon Greater Construction 47 000 m² 2018

Philippe Auguste Paris Regeneration 13 200 >2020

Avenue de la Marne Montrouge - Greater Paris Construction 21 200 m² >2020

Montpellier Majoria Montpellier Construction 64 000 m² >2020

Cap 18 Paris Construction 50 000 m² 2020

Rueil Vinci Rueil-Malmaison - Greater Paris Regeneration - Extension 43 000 m² >2020

Omega Levallois-Perret - Greater Paris Regeneration - Extension 21 500 m² >2020

Citroen PSA – Arago Paris Regeneration 19 500 m² >2020

Anjou Paris Regeneration 11 000 m² 2018-2020

Orange Gobelins Paris Regeneration 4 100 m² 2020

DS Campus Extension 2 (QP FdR 50%) Vélizy - Greater Paris Construction 11 000 m² >2019

Total Offices - France 403 700

Off

ice

s

Ita

ly

Via Schievano Milan Regeneration 31 800 2 019

Symbiosis (autres blocs) Milan Construction 101 500 2 022

Total Offices - Italy 133 300

Total 537 000


2016 INVESTMENTS: €2.8 BILLION SECURED

FY 2016 RESULTS 64

APPENDICES

Strengthening positioning in Paris, Berlin and Milan

Acquisitions 2016 Acquisitions 2017 (signed in 2016)

(€ million, including duties)

Capex100%

CapexGroup Share

Acquisitions100%

AcquisitionsGroup Share

YieldAcquisitions

100%AcquisitionsGroup Share

Yield

Offices - France 179 132 160 160 7.8% 0 0 n/a

Offices - Italy 34 18 87 45 6.6% 25 13 6.6%

Reinforcement Beni Stabili Na Na 0 147 6.5% 0 0 0.0%

German Residential 0 0 406 277 4.8% 70 44 4.9%

Hotels & Service sector128 37

50 15 6.4% 667 333 5.5%

Hotels Operating Properties 988 192 7.6%* 0 0 0.0%

Reinforcement FDM Na Na 0 217 5.9% 0 0 0.0%

Total 341 187 1 691 1 054 6.3% 762 390 5.5%

*EBITDA yield


2016 DISPOSALS: €1.6 BILLION

FY 2016 RESULTS 65

APPENDICES

Only 3% non strategic activities remaining

(€ million)Disposals

(agreements as of end of 2015 closed)

New disposals

2016

New agrements

2016

Total2016

Margin vs 2015 value

YieldTotal

Realized Disposals

1 2 3 2 + 3 = 1 + 2

Offices - France 100 % 113 11 84 95 4.4% 7.5% 124

Offices - Italy 100 % 55 7 694 701 1.5% 6.0% 62

Group Share 29 4 363 366 1.5% 6.0% 32

Residential - Germany 100% 126 227 21 249 10.8% 6.7% 353

Group Share 77 139 13 152 10.8% 6.7% 215

Hotels & Service sector 100 % 367 296 10 305 26.3% 4.9% 663

Group Share 183 148 5 152 26.3% 4.9% 331

Others 100 % 258 173 50 223 4.3% 1.2% 431

Group Share 195 106 35 140 2.5% 1.2% 301

Total asset disposals 100 % 919 714 859 1 573 8.2% 5.3% 1 632

Group Share 597 407 499 906 7.7% 5.4% 1 003

Offices France: Less small regional offices

German Residential: Less non core NRW

Hotels in Europe: Less non core AccorHotels in France

Non strategic: No more Healthcare

Less French Residential

Italy Offices:Less Telecom Italia


ORGANISATION CHART AT END-2016

FY 2016 RESULTS 66

APPENDICES

Foncière des Régions

France Offices Italy Offices(Beni Stabili)

German Residential

(Immeo)

Operating hotel properties

(FDM Management)

Hotels & Service Sector

(Foncière des Murs)

52.2% 61.0% 49.9%

40.7%

Consolidated subsidiaries

Equity affiliates

French Residential

(FDL)

61.3%


Paris30, avenue Kléber75116 ParisTel.: +33 1 58 97 50 00

ContactPaul ArkwrightTel.: +33 1 58 97 51 85Mobile: +33 6 77 33 93 [email protected]

FY 2016 RESULTS

record 2016 results the success of the european integrated ... · fy 2016 results 5 strategy €1.0...

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