FULL-YEAR RESULTS 2014 - AFFINE FY14.pdfLyon - Tangram Sant Feliu ILS Troyes Devanlay. 2014...

2014FULL-YEAR RESULTS

Presentation of

5 March 2015

22014 FULL-YEAR RESULTS

AFFINE

2014 KEY TAKEAWAYS

. STABLE EPRA EARNINGS

(+) 8.6% increase in gross rental income

(+) Cost of debt down to 3.0%

(-) Negative contribution from Banimmo

. CHANGE IN PORTFOLIO

Increase in average lease term to 5.1 years

€31.0m in acquisitions, improvements and developments

€27.9m from disposals

Occupancy rate above 90%

. ENHANCED CLARITY

Disposal of Concerto European Developer

Full consolidation of the Bordeaux shopping complex

. EPRA NAV PER SHARE OF €23.0

(-) Net earnings of -€11.0m due to fair value adjustments (€27.6m)

(-) Distribution in 2014 (€8.1m)

. DIVIDEND OF €1.0 PER SHARE(*)

(*) Will be submitted to the vote of the General Meeting of 30 April 2015

2014 FULL-YEAR RESULTS 3

INVESTMENTS AND DISPOSALS


Orléans:€1.4m

Chevigny St Sauveur:€2.6m


€31M OF INVESTMENTS AND €28M OF DISPOSALS

€23m: Development & Refurbishment

€28m: Disposals

Evry:

€10.4mParis - Réaumur:€11.0m

€8m: Acquisition

ToulouseParis - Réaumur

Lyon - Tangram

Sant Feliu

ILS

Troyes

Devanlay



TOULOUSE – LES AMARANTES 1

. 2,900 sqm of offices

4 floors (Ground -1 to G+2)

84 parking lots, 64 of which underground

80% let to 3 tenants :

. Located in the heart of the new Borderouge district

Major urban development area

Closed to

The newly-built Les Maourines shopping centre (Carrefour + 60 stores)

Toulouse Blagnac international airport (15 min)

Excellent public transportation links

Metro line B for quick access to the city centre

8 bus services covering a large part of the city

1 intermodal station

3 bicycle stands

. Contract signed in November 2014 for Les Amarantes 2 :

2,900 sqm of offices

Let at 88% to Dalkia

Pôle Emploi

La Mutuelle Générale

GreenFlex



LYON PART DIEU – TANGRAM

. Refurbishment of 5,700 sqm offices space

2 buildings and parking lot for 121 cars

Located on Boulevard des Tchécoslovaques on the extension of the Boulevard Vivier Merle, between the La Part-Dieu and Gerland districts

Easy and improved service and enhanced attractiveness

2 métro stations, numerous bus routes

Tram under progress

Completion by Q3 2015 and a well advanced marketing

2,750 sqm let to ISCOM with a 9-year fixed term lease

2,950 sqm under marketing

Building

Gare TGV

La Part-Dieu



RÉAUMUR, A PARTIAL RECONVERSION

. 1,656 sqm totally refurbished

741 sqm of offices

606 sqm turned into residential

309 sqm of retails

. Nearby the Marais district

Located at 100 m of the Arts et Métiers metro station

. Works €5m

. Disposals achieved

606 sqm of resitendial

229 sqm of offices



DEVELOPMENT

. Concerto European Developer

Delivery of a 19,000 sqm logistics platform in the Aube logistics park in Troyes for Devanlay

Delivery of a 10,700 sqm logistics platform in Sant Feliu (Spain)

Development of a 43,500 sqm logistics platform in the Aube logistics park in Troyes for the group of Petit Bateau

Building permit for the areas of

Cambrai (54,000 sqm)

Mer (72,000 sqm)

Honfleur (117,000 sqm)

. Disposal of Concerto European Developer, end of December,

to Kaufman & Broad through a partnership 2014-18


PERFORMANCE OF THE PORTFOLIO


594 (28)+3 (25)

+8+15 +8 575

31/12/13 Disposal Capital gain Like-for-like Capex Dev. Acq. 31/12/14


4.5% DECREASE OF THE PORTFOLIO VALUE

. Change in fair value excluding TT (€m)

. Breakdown of the 4.5% decrease in fair value on a like-for-like basis

Market rent effect (ERV): -2.3%

Cap rate effect: +0.4%

Miscellaneous: -2.6% (works, reversion, transfer taxes change …)


46.2 (0.7)(2.1)

(1.6) 1.6 43.4

31/12/2013 Refurbishment Disposal Like-for-like Acquisition 31/12/2014


HEADLINE RENTS: -3.7% LIKE-FOR-LIKE

. Change in headline rents annualized (€m)

Total headline rents change: -6.1%


88.2%

87.6%

96.5%

94.3%

83.9%

90.5%

90.2%

French Regions

Other Ile-de-France

Métropole du Grand Paris

Warehouses andindustrials

Retail

Offices

Total

94.0%92.2%

87.7%89.0%

87.8%

90.9% 90.2%

2008 2009 2010 2011 2012 2013 2014


OCCUPANCY RATE ABOVE 90%

. Financial occupancy rates (EPRA)

Impact Baudry -1.2 pt

Impact JdQ

+0.8 pt


0

10

20

30

40

50

31/12/14 31/12/15 31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 31/12/24

End of lease Fixed term


LEASE AVERAGE DURATION 5.1 YEARS (VS 4.8)

. Schedule in rents (€m) according to lease duration

Average time up to next break option: 2.8 years

Average time up to lease expiry: 5.1 years

20 new leases (36,300 sqm ; €1.7m)

35 renegociated leases (41,400 sqm ; €4.9m)

13 terminated leases (8,800 sqm ; €1.4m)



PORTFOLIO YIELD

. Return by asset type

. Return by location

Portfolio Headline Potential

Split in value yield yield

Offices 52.6% 6.9% 7.6%

Retail 21.7% 6.7% 8.0%

Warehouses & Industrials 25.6% 8.7% 9.2%

Total 100.0% 7.3% 8.1%

Portfolio Headline Potential

Split in value yield yield

Métropole du Grand Paris 26.9% 6.6% 6.8%

Other Ile-de-France 14.0% 8.3% 9.3%

French Regions 57.8% 7.4% 8.4%

Total 100.0% 7.3% 8.1%


SUBSIDIARIES

BANIMMO

. Repositionning property company

Portfolio: 20 buildings; Gross rental income: €9.0m; value: €335m.

. Key events

Acquisition of a plot of land allowing the development of 15,000 sqmoffices in Namur (Belgium).

Development by Banimmo of 8,000 sqm of offices for BNP Paribas Fortis in Charleroi (Belgium)

Disposal by Banimmo of 6,500 sqm of offices (€23.2m) under construction close to Brussels (Belgium) and which will be let to the Marsh & McLennan group

Disposal of Bagatelle 5,300 sqm shopping mall in Suresnes (€27m)

Acquisition of 4,710 sqm shopping mall in Pantin

. 2014 Results

Operating result: €10.5m vs €7.2m

Net current result: €3.2m vs -€4.2m

Significant negative accounting adjustments on the City Mall participation (-€8.4m)

Net current result: -€9.3m vs -€13.8m

More details on

www.banimmo.be


CONSOLIDATEDACCOUNTS


CONSOLIDATED ACCOUNTS

CONSOLIDATED EARNINGS

(€m) 31/12/12 31/12/13 31/12/14

Gross rental income 46.4 40.2 43.7

Net rental income 41.3 34.8 39.2

Other income 4.3 1.9 1.3

Corporate expenses (10.9) (10.0) (10.1)

Current EBITDA 34.6 26.7 30.3

Current operating profit 34.5 26.5 30.2

Other income and expenses (0.1) 0.7 (0.5)

Net financial cost (16.9) (11.5) (10.9)

Taxes (0.1) (0.5) (0.5)

Associates 2.5 1.9 (1.9)

Miscellaneous 0.3 (0.1) 0.1

Net current profit 20.2 17.0 16.5

Value adjustments of properties & profit on disposals (15.1) (21.8) (21.1)

Fair value adjustments of hedging instr. (1.5) 4.0 (2.3)

Adjustements for associates 0.9 (7.2) (3.4)

Others 0.4 (0.9) (0.6)

Net non-current profit – group share (15.4) (25.8) (27.4)

Net profit – group share 4.7 (8.8) (11.0)

EPRA Earnings (Net current profit – group share) 20.1 17.0 16.5


256.0 (8.1)(25.3)

(2.3)+16.6 (0.9) 236.0

31/12/2013 Dividends paid FV properties FV FI EPRA earnings Others 31/12/2014

€25.0per share

€23.0per share

CONSOLIDATED ACCOUNTS

NET ASSET VALUE CHANGE

(€m) 31/12/12 31/12/13 31/12/14

Shareholders’ equity (before allocation) 351.4 326.2 303.5

PSL adjustment (73.2) (73.2) (73.2)

Fair value adjustments to hedging instr. 12.6 7.2 9.9

Net deferred tax (2.1) (4.1) (4.3)

EPRA NAV (excluding transfer tax) 288.8 256.0 236.0

EPRA NAV (including transfer tax) 324.0 290.5 272.5

EPRA NAV (excluding transfer tax) per share (€) 28.2 25.0 23.0

(M€)Excluding PSL (TSDI)

Based on the Net Asset Value of Banimmo (€5.33 per share)

Others: interest on convertibles and PSL

Convertibles, etc

NAV per share after dilution fromconvertibles


FINANCING


881821 803

682 699 668

484423 407

310 327 33055.0% 51.5%50.8%

45.5%46.8%

49.3%

0%

20%

40%

60%

80%

100%

120%

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013 2014

Value

Loan

LTV

. LTV of 49.3% (€m)

Stability of the net debt

Interest rate risk hedged

Implementation of €15m of new swaps and €60m of new caps in June

FINANCING

A CONTROLLED LTV FOR A RESUMPTION OF INVESTMENTS


FINANCING

FINANCING AT FAVOURABLE CONDITIONS

. Average financing cost of 1.9%, or 3.0% hedging included

(vs 1.9% & 3.4%)

. Banks relationship diversified

6 main banks

Average duration of the debt: 5.2 years

Financing asset by asset with mortgages

Amortizable over middle term

. Financing in 2014

Mortgage loan:

Arcachon (€11m)

Bagnolet (€5m)

Lyon Dauphiné (€6m)

Réaumur (€5m)

Toulouse (€6m)

Development credit:

Concerto financing (€4m drawn)

. Refinancing of the 2015 debt service underway


0

20

40

60

80

100

120

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Contractual amortisation Repayment at maturity Early repayment

FINANCING

A SMOOTHED DEBT PROFILE

. Amortisation of debt (€m)

A financing policy aiming at smoothing the amortisation

Repayment: around €30m p.a. on average

Short term available credit lines of €15m


STRATEGY & OUTLOOKS


STRATEGY & OUTLOOKS

OUR STRATEGY [1/2]

. Geographic concentration of investments

On Métropole du Grand Paris and Regional Cities (Bordeaux, Lille, Lyon, Marseille, Nantes, Toulouse)

With a coordinated approach with local communities

To achieve economies of scale

. Investing primarily in buildings

Providing relatively high yield

Of an average size of €10m to €30m (offices, retails, logistic platforms)

Containing a potential for value creation by their location, rental situation or restructuring

. A sustained effort to improvement of assets

With a higher standards in a "sustainable development" approach

By management optimization through enhanced cost control

Disposal of buildings that no longer meet the investment criterias

. Becoming customer-oriented

By supplementing the providing of premises with rental services

To secure the loyalty of tenants in order to improve the profitability of properties


STRATEGY & OUTLOOKS

OUR STRATEGY [2/2]

. Breakdown of the portfolio in value term

52.6%

21.7%

25.6%

0.1%

OfficesRetailWarehouses and industrialOthers

La Métropole du Grand Paris


STRATEGY & OUTLOOKS

PRIORITIES FOR 2015

. Active investment research

In line with our strategy

By leveraging our access to credit

In coordination with disposals

. Improve rental performance

Lower rental expenses and administrative costs

Reduce the vacancy rate

. Seek partnerships

To broaden the range of investment fromour experience of the real estate business

. Enhance the quality of the portfolio

Disposal of buildings that no longer meet the investment criterias


CONTACTS

CONTACTS

. Affine

. Liquidity contract: Invest Securities

. Website : www.affine.fr

Maryse Aulagnon Alain Chaussard

Chairperson and CEO Vice-Chairman and Co-CEO

+ 33 (0)1 44 90 43 10 – [email protected]

Frank Lutz

Investor Relations

+ 33 (0)1 44 90 43 53 – [email protected]


APPENDIX


APPENDIX

CONSOLIDATED CASH FLOW

(€m) 31/12/12 31/12/13 31/12/14

Funds from operation 17.9 17.9 22.8

Funds from operation (excluding cost of debt and tax) 33.3 30.1 34.3

Change in WCR (16.4) 1.3 (13.2)

Taxes paid (0.0) (0.3) (1.2)

Operating cash flow 16.8 31.1 19.9

Acquisitions & Investments (20.5) (27.1) (22.1)

Disposals 131.2 8.3 25.2

Others 0.8 (1.2) 0.1

Investment cash flow 111.5 (20.1) 3.2

New loans 35.9 47.6 44.7

Loan repayments (123.8) (41.9) (60.4)

Interest (16.5) (11.5) (11.2)

Others (of which dividends) (15.7) (12.8) (13.9)

Financing cash flow (120.2) (18.6) (40.8)

Change in cash position 8.2 (7.6) (17.7)


APPENDIX

CONSOLIDATED BALANCE SHEET

(€m) 31/12/12 31/12/13 31/12/14

Properties 549.3 593.8 575.1

of which investment properties 522.0 550.4 426.9

of which property held for sale 27.3 43.4 148.2

Equity holdings 0.1 0.3 0.3

Equity affiliates 89.6 60.4 54.7

Cash 32.6 39.4 4.3

Other assets 90.7 85.5 72.0

Shareholders equity (before allocation) 351.4 326.2 303.5

of which convertibles 20.8 20.6 20.4

of which PSL 73.2 73.2 73.2

Bank debt 360.9 366.5 346.7

Other liabilities 49.8 86.7 56.0

Total balance sheet 762.2 779.4 706.3


12

13

14

15

16

17

18

19

20

21

janv.-14 mars-14 mai-14 juil.-14 sept.-14 nov.-14 janv.-15

Affine Euronext IEIF SIIC France EPRA Europe

0

10

20

30

40

50

janv.-14 mars-14 mai-14 juil.-14 sept.-14 nov.-14 janv.-15

APPENDIX

SHARE PRICE (€) AND AVG TRANSACTION VOL. (000)


APPENDIX

LTV (NET DEBT / PORTFOLIO VALUE)LO

AN

VA

LUE

(€m) 31/12/12 31/12/13 31/12/14

Net financial debt 334 347 345

Debt allocated to lease financing (23) (20) (15)

Debt for investment properties 310 327 330

Value of properties (incl. TT) 580 627 610

Property companies on equity basis 88 58 52

VEFA & Fixed assets adjustments 14 14 6

Adjusted portfolio value incl. taxes 682 699 668

LTV (net debt on portfolio value) 45.5% 46.8% 49.3%


9%4%

3%3%3%

78%

SNCF

TDF

Mairie Corbeil-Essonne

Distrib - Pharma

Heidelberg France

Others < 3%

333 Leases

TO

P 5

. A diversified portfolio of customer – Breakdown of rents

Overall, the group has 333 leases corresponding to an average rentalincome of €130,000 by tenant or €103,000 excluding the TOP 5

APPENDIX

A DIVERSIFIED RISK ON TENANTS


APPENDIX

DIVIDEND

. Affine, high yield property company (€m)

A 6.6% yield based on the share price of 31/12/2013 (€15.17)

10.7

9.812.2 13.4

8.1

14.4

20.6

10.8 10.88.1 9.0

0

5

10

15

20

25

30

2006 2007 2008 2009 2010 2011 2012 2013 2014

Cash Share


Holdaffine35.2%

Free float*64.8%

(voting rights 51.2%)

(voting rights 48.8%)

APPENDIX

SHAREHOLDING

. Shareholding

Annualised capital turnover rate of 47% based on the float

Annualised capital turnover rate of 31%

. Affine is listed on NYSE Euronext Paris 31 Dec 14

Number of shares 9,051,431

Share price €15.17

Market capitalisation €137.3m

Change in 2014 8.8%

EPRA earnings per share €1.38

Ticker (Bloomberg / Reuters) IML FP / BTPP.PA

* Of which La Tricogne and Orexim: repectively 6.6% and 5.0% of capital and 4.8% and 3.6% of voting rights


ANNEXE

POPULATION & TGV LINE

. 2016 : LGV Est Europe

106 km of new TGV line

Paris-Strasbourg: 1h50 vs 2h20

. 2017 : LGV Bretagne

Pays de la Loire


Paris-Rennes: 1h30 vs 2h10

. 2017 : LGV Sud Europe Atlantique


Paris-Bordeaux: 2h10 vs 3h00

. Grand projets ferroviaires

du Sud Ouest Current TGV Line

TGV line under

construction

TGV line under study

FULL-YEAR RESULTS 2014 - AFFINE FY14.pdfLyon - Tangram Sant Feliu ILS Troyes Devanlay. 2014...

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