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1 st half year results 2008 Brussels, 29 July 2008

1 st half year results 2008 Brussels, 29 July 2008. I. 1H2008 Review Important transactions – Offices Important transactions – Healthcare Assets Important transactions – PPP. Table of contents. Operational Review Financial Review Stock performance Outlook. I. 1H2008 Review.

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1 st half year results 2008 Brussels, 29 July 2008

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  1. 1st half year results 2008 Brussels, 29 July 2008

  2. I.1H2008 Review Important transactions – Offices Important transactions – Healthcare Assets Important transactions – PPP Table of contents • Operational Review • Financial Review • Stock performance • Outlook

  3. I. 1H2008 Review • Active arbitrage of offices properties – gain on disposal of older buildings: +€0.39 per share • Investments with favourable yield and lease length conditions • Property Portfolio +15% (vs. end 2007) • Excellent occupancy rate (98.9%) • Rental income +30% (vs. 1H2007) • Net current result per share +5% (vs. 1H2007) • Positive revaluation of the portfolio +0.1% or +€0.21 per share • Forecast gross dividend € 7.80 (payable in May 2009) • Cofinimmo present in Belgium, France and the Netherlands • Cofinimmo now listed on NYSE Euronext Paris

  4. Office portfolio Corporate Partnerships Public Private Partnerships (re)developmentLetting risk LT leases Location Nursing homes Pubs Long term financial leases Residual value Residual value No residual value Investment strategy Acquisitions focused on 3 pillars Supported by Project & Property Management

  5. Total Portfolio as at 30.06.2008 12.1% invested abroad

  6. Total Portfolio as at 30.06.2008+ Korian and SLG deals which are due to close in 2H2008 15.7% invested abroad

  7. II. Important transaction – office segment • Omega Court • Inv. Value: € 41.5 million • 18,000 m2, 187 parking places • Next to Delta subway station • Yield range: 6.5% - 7% • Being marketed

  8. Disposals in the offices segment Realised gain of € 4.90 per ordinary share

  9. Offices as at 30.06.08 CBD = 47.2%

  10. III. Important transaction - Nursing homes Belgium • Medibelge • € 30.9 million • 6 nursing Homes • 573 beds, 18,510 m² • Yield: 6.33% double net equivalent • Restel • € 8.7 million • 1 nursing home • 5,387m² – 139 beds • Yield: 6.4% double net equivalent • Van den Brande (Palmir) • € 15.5 million • Delivery of 2 new nursing homes • 7,750m² - 120 beds • Yield: 6.3% double net equivalent • Restel • Acquisition of a land • € 2.5 million • Construction of a new nursing home • 5,800m² – 102 beds • Estimated cost of works € 8.8 million • Yield: 6.39% double net equivalent

  11. Nursing homes Belgium - SLG (Post Closing) • Share purchase of 100% of Miroma Senior Service SA owning 4 nursing homes • All assets located in Belgium • Brussels • Flemish region • All assets operated by Senior Living Group • Investment value of € 77.6 million • 45,000 m² - Price paid per sqm: € 1,725 • Gross initial rental yield of 6.14% • Double net equivalent

  12. Healthcare assets France - Medimur • Contribution in kind of 83% of shares in Medimur (€ 63.0 million) • Issuing of 493,571 new ordinary Cofinimmo shares entitled to share in results as of 01.01.2008 (first dividend paid in 2009) • Capital increase within authorised capital by decision of Board of Directors on 23 March 2008 • Issuing price: € 127.63 (30 day market price average corrected for absence of dividend for year 2007) or 2.9% above NAV with portfolio in investment value.

  13. Healthcare assets France - Medimur • Share purchase of 100% of Medimur SA (France) owning 32 health centers • 14 post-acute clinics (Soins de Suite et Rééducation – SSR) • 6 psychiatric clinics • 12 nursing homes (Etablissements d’Hébergement pour Personnes Agées Dépendantes – EHPAD) • All assets located in France • Ile de France • Haute Atlantique • South of France • 2 operators • Korian • 21 sites - average lease length 6.5 years • Méditer • 11 sites - average lease length 11.5 years • Investment value of € 229.0 million • 125,000 m² - Price paid per sqm: € 1,824 • Gross initial rental yield of 6.25% • Double net equivalent

  14. Healthcare assets France- Korian Group • Acquisition of 19 health centers from the Korian Group • 19 nursing homes (Etablissements d’Hébergement pour Personnes Agées Dépendantes – EHPAD), of which 5 are currently under construction • 11 nursing homes have been constructed during the last 2 years • Average lease length 12 years • All assets located in France • Ile de France • Normandy • Mediterranean region • Investment value of € 144.4 million • 85,400 m² - Price paid per sqm: € 1,700 • Gross initial rental yield of 6.55% • Double net equivalent • Yearly indexed • Closing expected 2H2008

  15. Nursing homes – overview(including committed acquisitions) (1) • Investment value of € 730 million • Average price paid per sqm: € 1,774 • Significant development pipeline • All leases are fixed price, indexed yearly (1) Recently merged to form Armonea

  16. IV. Important transaction Public Private Partnerships • Police station in Edegem • Delivery of the project at the end of April 2008 • Delivery on schedule and on budget • € 6.38 million • 4,000 m²

  17. Public Private Partnerships • Fire station in Antwerp • Structure completed • € 39 million • 23,585m² • End of works November 2008

  18. V. Operational Review • Active commercial approach • Client loyalty • Reinforcement of relation with real estate brokers • Flexibility within the portfolio • Additional property services • Market level rents and reduced incentives RENTED

  19. Commercial activity 2007 • 53,562m² let to 55 new clients • 41,379m² let to existing clients • Like-for-like change in rental income: +1.98% • 97.37% Cofinimmo occupancy rate at end 2007 1H2008 • 14,700 m² let to new clients • 32,500 m² let to existing clients • Like-for-like change in rental income: +3.7% • 98. 55% Cofinimmo occupancy rate at end 1H2008 Average 2003-2007 = 89,000m²

  20. Vacancy risk handling • Stability of rental income through vacancy risk 70% secured (average 2003-2007) • Vacancy risk represents on average 12-15% of the total portfolio • Based on last 5-year average, 70% of this risk was secured by commercial efforts • 2007 activity allowed to limit effective departures to 6% of total portfolio Risk = let spaces coming up for lease breaks in the year

  21. Evolution of occupancy rate Current portfolio versus like for like basis (2001-2008 YTD) • Comparison over 5 years shows marginal impact of sales and acquisitions • Cofinimmo vs. market vacancy (1) CB Richard Ellis, DTZ

  22. Evolution of rents for Cofinimmo • Cofinimmo average contracted rents (€/m²/year) • Evolution of rent on renegotiated surfaces (“reversion”)(1) (1)Based on weighted average nominal rents

  23. Average maturity of total portfolio 11.8 year 11.0 year

  24. Brussels office market Letting market • Rental activity in sharp decrease compared to 1H2007 • Private sector confirmed its activity in 1H2008 • Gross take-up in Brussels around240,000m² in 1H2008 • Absence of major transactions with European institutions • Companies rationalise the use of office space more than they expand it  Contrasting net take-up: ± 10 - 20% of gross take-up • CBD vacancy up due to delivery of new surfaces mostly in North District • Vacancy level in Brussels slightly stabilised > 9% • Average rent levels stabilised (1) CB Richard Ellis, DTZ

  25. Investment market • Still active investment market in 1H2008 • Around € 925 million invested in office segment • Yield levels stable in the CBD submarkets • Yield levels rose by 25 bp in the peripheral and decentralised markets • Sub prime crisis has dampened the zeal of the most adventurous investors • Investment market will remain active, but valuation should become more reasonable

  26. Challenges • Consequences of the take-up of ‘Tour des Finances’ by the Belgian authorities? • Investments in the office segment with attractive yield are very scarce • Including assets with a ‘good’ vacancy • Still important delivery of new office buildings expected • Relying on EU / administrative growth only is not enough • Demand from EU institutions is constant • Demand from the Belgian public sector will be much lower

  27. VI. Financial review 2007 – 1H2008 • Steady operating performance; occupancy rate 98.9% at end 1H2008 – improvement of operating margin to 86.1% (vs. 84.1%), reflecting triple net leases and tight control of costs • High interest rates and lower gearing ratio over 2007 impacted the 2007net current result; average cost of debt stable over 1H2008 • Balance sheet re-geared over 4Q 2007 and 1H2008 by new investments (Pubstone, nursing homes) with solid long term cash flows • Sizable current but non recurring items: € 1.57 per share for FY2007 and € 0.44 for 1H2008 • Substantial realised capital gains: €3.58 per share for FY2007 and €0.39 for 1H2008 • Significant portfolio revaluation: €2.66 per share for FY2007 and €0.21 for 1H2008 • Careful interest hedging policy maintained • Company guidance for 2008: net current result per share (€8.02) sustained by 1H2008 actuals • Forecast 2008 gross dividend of € 7.80 (vs. € 7.75 for 2007)

  28. Results per ordinary share (1) On same stock basis

  29. Net current result

  30. Net current result per ordinary share - analysis Company guidance for net current result per share 2008: € 8.02

  31. Portfolio Net asset value per share

  32. Shareholders’ yield

  33. Equity raised • During 1H2008 new equity of € 118 million was raised • € 63 million - 493,571 new ordinary shares were issued to the former Medimur shareholders at € 127.63 per share • € 55 million – 446,119 own ordinary shares were sold on Euronext at an average net price of € 124.39 • Total shares issued/sold: 939,690 at € 126.10 • All new shares are entitled to participate in the result as from 01.01.2008

  34. Debt funding • Cofinimmo well prepared to the difficult credit environment • Stable cash flows • Long term revenues / tenant quality • Conservative interest rate hedging • Only € 3 million of debt maturing in 2008 • € 230 million of new long term (6.1 years) lines raised in 1H2008 • Liquidity position is favourable • Limited near-term debt maturities • Spreads locked in • Commercial Paper Program (CPP) remains active, spread from 4 bp to 10 bp • Short term CP 100% backed up by long term lines • Undrawn committed long term lines available for investments: € 346 million • Standard & Poor’s BBB LT rating re-affirmed with a stable outlook on 17.12.2007

  35. LT- Bank facilities LT- Capital markets ST- Bridge loan Debt overview Total financial debt € 1,609 Mas at 30.06.2008 Total LT commitments € 1.945 M (*) + Bridge loan (up to 03/2009) € 55 M • Diversified source of funding • € 239,1 M ST CP 100% backed up by LT lines • € 346 M extra LT lines available for investments • Average maturity of 5.10 years • Only 18.5% maturing before 2011 • Maximum 13.6% maturing in one single year • Bank facilities: 21 partners / 90% rated AA or above Homogeneous maturity schedule Cost of debt 1H08: 4.56% (*) situation as at the Report Date 29.07.2008

  36. Interest rate hedging current position Strike CAP OPTIONS BOUGHT 4.85% 425M 5.0% 4.25% 4.5% 800M 500M 4% 600M 4.00% 375M 4.0% INTEREST RATE SWAPS 4.03% 440M 4.00% 425M 3.5% 4.00% 300M 3.79% 740M 3.75% 640M 4.5% 4.25% 425M 4.00% 125M 4.00% 425M 4.0% 3.50% 600M 3.25% 3.5% 600M 900M 600M FLOOR OPTIONS SOLD 3.0% S2-08 2012 2013 2014 2015 2016 2009 2010 2011 Hedging 1.665M 1.665M 1.330M 1.225M 1.225M 425M 425M 0M 1.765M % debt fixed / capped 94% 94% 75% 69% 69% 24% 24% 0% 100% Forward as at 24/07/08; %debt fixed /capped = notional fixed @ year x / notional @ year 2008

  37. VII. Stock performance • Correction on listed real estate market in 2007 • 1st half 2007 • Increase of European interest rates • Withdrawal of capital in real estate funds • 2nd half of 2007 • Deteriorating credit market and credit crunch • More withdrawal of capital in real estate funds • 1st half 2008: Renewed interest in real estate stocks • 2007 evolution of Cofinimmo share: -15.43% • 2007 evolution of EPRA index: -33.83% • 2008 evolution of Cofinimmo share: -10.27% (on June, 30) • 2008 evolution of EPRA index: - 20.28% (on June, 30)

  38. Listing on NYSE Euronext Paris • Ordinary and preference Cofinimmo shares were admitted to trading on 23.06.2008 on NYSE Euronext Paris • Dual listing will enhance Cofinimmo’s visibility among French investors • SIIC status will be obtained in the near future

  39. Growth for the shareholders 30.06.08 • +19.7% Total return since Jan 2005 (vs. 23.45% BEL20 and 5.33% EPRA Europe) • +5.28% Average annual return 2005-2008 (vs. 6.21% BEL20 and 1.50% EPRA Europe)

  40. Return for the shareholders - 2008 • € 7.75 2007 gross dividend on ordinary shares (paid in May 2008) • 4.7% Dividend increase over 2006, +19.35% compared to 2001 • -4.48% Total return over 2008: 5.79% average dividend yield -10.27% price variation € per share • -20.4% Bel20 Total return over 2008

  41. Fair stock valuation: Discount to NAV +15.67% average premium to NAV in 2007, however: • End 2007 this premium decreased to 4.96% and a discount prevailed at end June 2008 • Defensive character of Cofinimmo share

  42. VIII. Outlook • Growth opportunities according to strategy • Offices, health care assets, PPP • Investment capacity as per max. financial gearing ratio of 55% • Careful interest rate hedging and debt funding policies maintained • Net current result for 2008 around € 8.02 per ordinary share • 2007 & 2008 investments will influence 2008 net current result • Dividend policy will be sustained, forecast gross dividend of € 7.80

  43. Questions & Answers

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