Antwerp28 November 2017
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AGENDA
01 Who we are?
Market of student housing
Portfolio
Financial
Future
02
03
04
05Proposal06
01Who we are?
Who we are?
AGENCY
(BE)
INVESTMENT
(BENELUX)MANAGEMENT
(BENELUX)CONSULTING
(BENELUX)
Who we are?
AGENCY
(BE)
INVESTMENT
(BENELUX)MANAGEMENT
(BENELUX)CONSULTING
(BENELUX)
Offices• Antwerp• Mechelen• St-Niklaas
Who we are?
AGENCY
(BE)
INVESTMENT
(BENELUX)MANAGEMENT
(BENELUX)CONSULTING
(BENELUX)
Offices• Antwerp• Mechelen• St-Niklaas
• 2nd largestindependantReal Estate Manager
• 2.000.000 m² undermanagement
Who we are?
AGENCY
(BE)
INVESTMENT
(BENELUX)MANAGEMENT
(BENELUX)CONSULTING
(BENELUX)
Offices• Antwerp• Mechelen• St-Niklaas
• 2nd largestindependantReal Estate Manager
• 2.000.000 m² undermanagement
Quares Student Housing
Who we are?
• Non-listed investment vehicle – latest exit horizon 2026
• Return on Equity based upon capitalisation (no dividends)
• Student housing
• Geographical area: Belgium with 5 largest student cities
• Portfolio of € 56,3 mio
• Shareholders structure:
• www.qshf.be
01
15.0%
13.9%
70.8%
Fam.Costermans
KBC
+/- 180 shareholders
02Market of student housing
International context
Bologna Process
Creation of 1 European higher education framework
• Mutual recognition of study periods
• Similar qualifications
• Uniform quality standards
“Higher education is becoming an worldwide business”
Number of international students20144.1 m
20207.0 m
Globalisation of higher education
02
BelgiumImpact on globalisation for Belgium
02
Higher instream of international and European Students through:
• Higher transparency of Belgian study possibilities
• Higher mobility of European & international students;
+9,36%
+40,83%
Source: In-house researchQuares; Engelstaligonderwijs bezig aan forseopmars, De Tijd, 8 mei2015, Bedrijven snakkennaar internationaalonderwijs,De Tijd, 8 mei 2015.
BelgiumImpact op globalisation for Belgium
02
… enabled by:
• Erasmus programs
Source: In-house research Quares; Focus on: What future for student mobility, Ross McQueen and David Crosier, Eurydice, 14/02/2017; Recordaantal Vlaamse studenten op Erasmus, Persbericht kabinet Vlaamse minister van Onderwijs Crevits, 12/08/2016; Onderwijs Vlaanderen. Dit is een grafiek op basis van de inkomende studenten die Erasmus volgen. Dit is geen netto-grafiek die rekening houdt met de studenten die buiten België gaan studeren via Erasmus. Noteer dat de contracten aangaande studentenhuisvesting mbtErasmus studenten veelal een kortere termijn hebben dan 1 jaar (wat gebruikelijk is).
• Geographical situation
• Low life, housing and study costs compared to other countries
• Agenda of Lisbon agreement 2020
• Tendancy to prolongation of study period
BelgiumIncreasing number of students
02
Belgium – evolution number of students
Source: In-house research Quares
Flanders – scattered landscape
Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.
Source: In-house research Quares.
Wallonia – scattered landscape
Source: In-house research Quares.
Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.
Brussels – scattered landscape
Source: In-house research Quares.
Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.
Student Housing in the press - Belgium
Source: VRT, 29 augustus 2017; De Tijd, 2 september 2017; De Tijd, 13 september 2017
Student Housing in the press - Antwerp
Source: De Standaard, 26 augustus 2017; De Tijd, 2 september 2017; De Standaard, 6 september 2017.
Student Housing in the press - Brussels
Source: De Standaard, 18 juli 2017; BRUZZ, 25 augustus 2017; VRT, 29 augustus 2017; De Tijd, 2 september 2017.
Student Housing in the press - Leuven
Source: De Standaard, 21 februari 2017; VETO, 27 februari 2017; De Standaard, 14 juli 2017; De Standaard, 26 augustus 2017; De Tijd, 17 augustus 2017; De Tijd,
2 september 2017.
Student Housing in the press – Ghent
Source: De Standaard, 19 april 2016; De Standaard, 23 september 2016; De Tijd, 2 september 2017; De Morgen, 20 september 2017.
Student Housing in the press – Liège
Source: La Meuse, 19 juli 2017; RTL, 21 augustus 2017; Le Soir, 29 augustus 2017
Student Housing in the press
Source: BRUZZ, 1 februari 2016; De Tijd, 9 juni 2016; De Standaard, 9 augustus 2016; Vlaams minister van
Onderwijs Crevits, 12 augustus 2016; Catella, 9 maart 2017; JLL, 2017.
BelgiumIncreasing number of students
02
75% enrollment rate
Source: Gross enrolment ratio by level of education, Unesco Institutefor statistics, 2000-2015.
BelgiumNumber of students in K
02
165 institutions of higher education – 610 locations
Source: In-house research Quares; Centrumsteden in evolutie, editie2016, Mercedes Van Volcem.
5 universities , 13 high schools, 12 other institutionsof higher education
4 universities, 39 high schools, 9 other institutionsof high education
4 universities, 78 high schools, 1 other institution of higher education
Nr of Students in ‘000
Belgium
02
Focus on 5 cities
Source: In-house research Quares; Centrumsteden in evolutie, editie2016, Mercedes Van Volcem.
Number of students in K
92
63
55
49
55
5 universities , 13 high schools, 12 other institutionsof higher education
4 universities, 39 high schools, 9 other institutionsof high education
4 universities, 78 high schools, 1 other institution of higher education
Nr of Students in ‘000
Focus on 5 cities
02
30% of locations covers 72% of students
Nr. % Possible Locations %
Total nr. of students 437.000 100% 610 100%
Total nr. of students in 5 cities 315.000 72% 180 30%
Total nr. of students in 5 cities residing in rooms
150.000 48%
Total nr. of rooms in 5 cities
104.000 69%
Shortage 46.000 31%
Source: In-house research Quares; Centrumsteden in evolutie, editie 2016, Mercedes Van Volcem.
Belgium – Key Figures
02
Key Figures of 5 largest cities
KEY NUMBERS ACADEMIC YEAR ‘16-17
Antwerp Leuven Ghent Brussels Liège
Number of students 55.086 55.206 62.772 91.940 48.855
Share foreign students 9,74% 9,73% 12,83% 26,57% 13,00%
Number of students living at
student rooms
7.500 40.000 37.500 55.164 9.354
Share students living at student
rooms
13,62% 72,46% 56,74% 60% 17,54%
Number of rooms 9.500 41.237 31.000 10.500 12.000
Tendency rooms Oversupply
2.000
Oversupply
1.237
Undersupply
(6.500)
Undersupply
(44.664)
Oversupply
2.646
Average
price/month
room € 335 € 355 € 326 € 446 € 320
studio € 410 € 460 € 427 € 520 € 359
appartement € 525 / € 495 € 600 € 544
Occupancy rate rooms 80% 97% 95% 99% 90%
Quality label Antwerps
kwaliteitslabel
Kotlabel to be
developed
Br(ik-OK-label Verhuur licentie
(Le Permis de
location)
03Portfolio
Portfolio Portfolio today
03
BrusselsBuildings: 5Rooms: 267Value: € 29,6m
AntwerpBuildings: 15Rooms: 202Value: € 19,1m
LiegeBuildings: 1Rooms: 146Value: € 7,6m
Evolution of the portfolio
03
Portfolio per 30/09/2017
14 280 16 24324 541
29 6307 430
7 5907 590
19 100
0
10 000
20 000
30 000
40 000
50 000
60 000
31/12/2014 31/12/2015 31/12/2016 30/09/2017
EVOLUTION OF THE TOTAL PORTFOLIO (€ ‘000)
Brussels Liege Antwerp Leuven Gent
Portfolio Today
03
Actual portfolio in 3 cities
OR: Occupancy RateContract: Contract duration until 1st breakERV: Estimated Rental ValueRent: Actual RentIV: Investment Value
53%
13%
34%
Portfolio (based upon IV)
Brussel Liege Antwerp
Rooms OR ContractYearly
RentERV Var. IV
Market
Yield
Actual
YieldNr. % Y € '000 € '000 €m € '000 % %
Brussels 267 99,3% 7,6 1 757 1 720 2,1% 29 630 5,81% 5,93%
Liege 146 100,0% 0,6 544 570 -4,6% 7 590 7,52% 7,17%
Antwerp 202 100,0% 1,0 1 042 1 057 -1,4% 19 100 5,53% 5,45%
Total 615 99,7% 4,2 3 343 3 347 -0,1% 56 320 5,94% 5,94%
Portfolio Today- Brussels
Brussels
267
99,3%
29,6 Mio
5,93%
Rooms
Occupancy
Inv. Value
Yield
03
> 94% of the passing rent for > 3 years / > 43% of passing rent for > 14 years
RoomsYearly
rent (' 000)
Rental
Risk
Break
DateClient
Operate
d byCosts
Kothouse 21 103 QSH yearly Students Br(ik Yes
Van Orley & Zavelput 86 765 Br(ik 2031 Br(ik Br(ik No
Méridien 18 89 Usl-B 2020 Usl-B Usl-B Yes
Ommegang 142 800 Usl-B 2020 Usl-B Usl-B Yes
267 1 757
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Finance Avenue18 November 2017
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Portfolio Today - Liège
Liege
146
100%
7,6 Mio
7,17%
Rooms
Occupancy
Inv. Value
Yield
03
• One of the largest student residences in Liège;
• Mainly for long and short stays for Erasmus students;
• Originally a gift by the RuhlFamily to the Belgian State –later on, acquired by private investor who completely renovated the building and rooms;
Portfolio Today - Antwerp
Antwerp
202
100%
19,1 Mio
5,45%
Rooms
Occupancy
Inv. Value
Yield
03
• Per 29/06/2017 – Deal with Fam. Costermans to acquire total portfolio of € 35 mio in Antwerp
• Top locations nearby Antwerpcampus
Pipeline – doubling portfolio with …
Further acquisition of Room To Bloom Portfolio
• Inaugurated in 1976 as “First Immo”• In 2002: split of “First Student Housing”
• Change of name in 2010 “Room to Bloom”
• >20 years experience• Family owned : managed by father anddaughter Costermans
• Confident and strong structure with lotsof experience of Antwerp Studenthousing market.
• 21 houses in Antwerpen centre, 282student kots & 54 startersflats (of which 31 kamers in construction)
• Toplocations: Around Paardenmarkt andOssenmarkt, THE studentenlocation in Antwerp
• Declared Building permit stop forstudenthousing at this location
•100 % Occupancy• Real estate in very good condition’green label’
•Experienced en competent team of 5 FTE’s (incl. handy man & cleaning)
Room to Bloom
Top Location in Antwerp
University of Antwerp
AP High School
Room to Bloom
Portfolio
Nr. of students residing in rooms (‘ 000)
55
49
9255
63
Pipeline – and…
Development of further pipeline in
existing and additional cities
04Financial
Profit & Loss (‘000) - 30/06/2017
04Consolidation per 30/06/2017 does not include figures for the Room To Bloom Transaction as Transaction did occur on 29/06/2017.
30/06/2017 30/06/2016 Variance 31/12/2016
1 2 1-2 3
Rental income & provisions (A) A 857 820 36 1 684
A. Turnover 847 817 29 1 648
D. Other Income 10 3 7 36
Operational expenses (B) B -1 092 -1 083 -9 -2 262
Direct Costs 0 0 0 0
General Services -200 -311 111 -738
Personnel Costs -50 -52 2 -116
Depreciations -673 -656 -17 -1 294
Other Costs -169 -64 -105 -115
Operational Result (A)+(B) A+B -236 -263 27 -578
Depreciations C 673 656 17 1 294
EBITDA A+B+C 438 393 44 716
EBITDA % 51,08% 47,93% 42,50%
Financial income D 1 4 -3 10
Financial charges E -131 -146 15 -335
Result before taxes (EBT) A+B+C+D+E 307 251 55 391
Income Taxes F 0 0 0 0
Result A+B+C+D+E+F 307 251 55 391
Financial charge 1,79% 2,33% 2,53%
ConsolidatedStatutory BS (not IFRS) meaning no restatementtoinvestment value, expertisedby CBRE
Balance sheet (‘000) - 30/06/2017
04
ConsolidatedStatutory BS (not IFRS) meaning no restatementtoinvestment value, expertisedby CBRE
30/06/2017 30/06/2016 31/12/2016 31/12/2015
ASSETS 1 2 3 4
Fixed assets 38 961 28 704 29 628 22 686
I. Formation expenses 1 146 1 585 1 193 1 459II. Intangible fixed assets 34 7 12 8III. Tangible fixed assets 37 781 27 112 28 423 21 219
Current assets 2 326 5 315 5 507 4 091VII. Amounts receivable within 1 year 39 109 32 9IX. Cash at bank and in hand 2 244 5 174 5 441 4 059
X. Deferred charges and accrued income 43 31 34 23
Total assets 41 288 34 018 35 135 26 776
LIABILITIES
Equity 24 076 20 937 20 439 14 021
Minority Interests 0 0 0 1
Provisions and deferred taxes 495 0 0 0
Amounts payable 16 717 13 082 14 696 12 755VII. Amounts payable after more than 1 year 15 260 12 042 13 359 11 756VIII. Amounts payable within 1 year 1 347 907 1 254 854
IX. Accrued charges and deferred income 110 133 83 145Total liabilities 41 288 34 018 35 135 26 776
Consolidation per 30/06/2017 does include figures for the Room To Bloom Transaction as Transaction did occur on 29/06/2017.
Debt analysis - 30/06/2017
04
30/06/2017 30/06/2016 31/12/2016 31/12/2015
Amounts payable 16 717 13 082 14 696 12 755VII. Amounts payable after more than 1 year 15 260 12 042 13 359 11 756
A. Financial debts 15 260 12 042 13 359 11 756
(i) Bond loans 0 11 382 0 10 266
(ii) Credit institutions 15 260 660 13 359 1 490VIII. Amounts payable within 1 year 1 347 907 1 254 854
30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015
Calculation of Debt Ratio
1. Upgrade to Investment Value
Investment Value CBRE 56 320 42 433 30 167 32 131 23 673
Book Value 37 781 27 112 28 423 21 219
Variance 4 652 3 055 3 708 2 454
2. Debt Ratio
Restated Assets 56 320 42 433 30 167 32 131 23 673
Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950
Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%
Max. Debt Ratio 60,0% 60,0%
Headroom Additional Investment Value 25 333 30 438
Headroom Decrease in Investment Value 16 889 20 292
Debt analysis - 30/06/2017
04
30/06/2017 30/06/2016 31/12/2016 31/12/2015
Amounts payable 16 717 13 082 14 696 12 755VII. Amounts payable after more than 1 year 15 260 12 042 13 359 11 756
A. Financial debts 15 260 12 042 13 359 11 756
(i) Bond loans 0 11 382 0 10 266
(ii) Credit institutions 15 260 660 13 359 1 490VIII. Amounts payable within 1 year 1 347 907 1 254 854
30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015
Calculation of Debt Ratio
1. Upgrade to Investment Value
Investment Value CBRE 56 320 42 433 30 167 32 131 23 673
Book Value 37 781 27 112 28 423 21 219
Variance 4 652 3 055 3 708 2 454
2. Debt Ratio
Restated Assets 56 320 42 433 30 167 32 131 23 673
Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950
Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%
Max. Debt Ratio 60,0% 60,0%
Headroom Additional Investment Value 25 333 30 438
Headroom Decrease in Investment Value 16 889 20 292• Portfolio is valued 2 times a year by Real Estate Expert CBRE
• Valorisation @ Investment Value
Debt analysis - 30/06/2017
04
30/06/2017 30/06/2016 31/12/2016 31/12/2015
Amounts payable 16 717 13 082 14 696 12 755VII. Amounts payable after more than 1 year 15 260 12 042 13 359 11 756
A. Financial debts 15 260 12 042 13 359 11 756
(i) Bond loans 0 11 382 0 10 266
(ii) Credit institutions 15 260 660 13 359 1 490VIII. Amounts payable within 1 year 1 347 907 1 254 854
30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015
Calculation of Debt Ratio
1. Upgrade to Investment Value
Investment Value CBRE 56 320 42 433 30 167 32 131 23 673
Book Value 37 781 27 112 28 423 21 219
Variance 4 652 3 055 3 708 2 454
2. Debt Ratio
Restated Assets 56 320 42 433 30 167 32 131 23 673
Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950
Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%
Max. Debt Ratio 60,0% 60,0%
Headroom Additional Investment Value 25 333 30 438
Headroom Decrease in Investment Value 16 889 20 292
Debt analysis - 30/06/2017
04
30/06/2017 30/06/2016 31/12/2016 31/12/2015
Amounts payable 16 717 13 082 14 696 12 755VII. Amounts payable after more than 1 year 15 260 12 042 13 359 11 756
A. Financial debts 15 260 12 042 13 359 11 756
(i) Bond loans 0 11 382 0 10 266
(ii) Credit institutions 15 260 660 13 359 1 490VIII. Amounts payable within 1 year 1 347 907 1 254 854
30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015
Calculation of Debt Ratio
1. Upgrade to Investment Value
Investment Value CBRE 56 320 42 433 30 167 32 131 23 673
Book Value 37 781 27 112 28 423 21 219
Variance 4 652 3 055 3 708 2 454
2. Debt Ratio
Restated Assets 56 320 42 433 30 167 32 131 23 673
Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950
Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%
Max. Debt Ratio 60,0% 60,0%
Headroom Additional Investment Value 25 333 30 438
Headroom Decrease in Investment Value 16 889 20 292
Debt analysis - 30/06/2017
04
30/06/2017 30/06/2016 31/12/2016 31/12/2015
Amounts payable 16 717 13 082 14 696 12 755VII. Amounts payable after more than 1 year 15 260 12 042 13 359 11 756
A. Financial debts 15 260 12 042 13 359 11 756
(i) Bond loans 0 11 382 0 10 266
(ii) Credit institutions 15 260 660 13 359 1 490VIII. Amounts payable within 1 year 1 347 907 1 254 854
30/09/2017 30/06/2017 30/06/2016 31/12/2016 31/12/2015
Calculation of Debt Ratio
1. Upgrade to Investment Value
Investment Value CBRE 56 320 42 433 30 167 32 131 23 673
Book Value 37 781 27 112 28 423 21 219
Variance 4 652 3 055 3 708 2 454
2. Debt Ratio
Restated Assets 56 320 42 433 30 167 32 131 23 673
Net Financial Liabilities 23 659 13 285 7 138 8 197 7 950
Debt ratio 42,0% 31,3% 23,7% 25,5% 33,6%
Max. Debt Ratio 60,0% 60,0%
Headroom Additional Investment Value 25 333 30 438
Headroom Decrease in Investment Value 16 889 20 292
Debt ratio of 42%
headroom for 25 Mio additional investments with debt
limited risk of decrease of value
Consolidated figures per 30/06/2017
04
0,3%
17,4%0,0%
82,3%
Quares KBC AM Fam. Costermans Other
Before Deal Room to Bloom
KBC 0,3%
15,0%
13,9%
70,8%
Quares KBC AM Fam. Costermans Other
After Deal Room to Bloom
Costermans
KBC
Shareholders (number of shares)
Capital Increases since incorporation (21/02/2013)
04
8 capital increases for > € 25,2 Mio
1 1371 110
3 623
4 817
2 059
1 165
2 880
4 441
4 005
7/mrt/13 12/apr/13 24/apr/14 28/nov/14 13/mrt/15 13/jul/15 8/feb/16 30/mrt/16 29/jun/17 Today
Capital Capital Increase
Capital
25.296(€ 000)
05
Evolution of Net Asset Value
The Net asset value is based upon the Gross Investment Value (VON) for the property, i.e. that the value does not take into account that a possible buyer needs to pay possible registrationduties whereby a possible lower price will be paid to Quares. The Net asset Value is also based upon Equity before substraction of non-amortised formation expenses
05
Evolution of Net Asset Value
11 427 € 11 459 €
11 870 €11 984 €
12 108 € 12 064 €
12 453 €
13 084 €
9 500 €
10 000 €
10 500 €
11 000 €
11 500 €
12 000 €
12 500 €
13 000 €
13 500 €
14 000 €
30/06/2014 31/12/2014 30/06/2015 31/12/2015 30/06/2016 31/12/2016 30/06/2017 31/12/2017
The Net asset value is based upon the Gross Investment Value (VON) for the property, i.e. that the value does not take into account that a possible buyer needs to pay possible registrationduties whereby a possible lower price will be paid to Quares. The Net asset Value is also based upon Equity before substraction of non-amortised formation expenses
05
Gross / Net Yield (for “C” shares)
31/12/17
VON FV
NAV (€) 13.084 12.567
Calculation of yield for ‘C’ shares
Gross (%) 5,77 4,86
Net (%) 5,42 4,51
1. VON: The Net asset value is based upon the Gross Investment Value (VON) for the property, i.e. that the value does not take into account that a possible buyer needs to pay possibleregistration duties whereby a possible lower price will be paid to Quares. The Net asset Value is also based upon Equity before substraction of non-amortised formation expenses
2. FV: The Net asset value is based upon the Fair Value (FV) for the property, i.e. that the value does take into account investment value minus 2,5% of the investment value (this is based upon the fact that a sample is taken in the market where a large % of het real estate transactions is done with shares (without registration duties) and a small % is done withregistration duties. Net asset Value is also based upon Equity before substraction of non-amortised formation expenses.
3. The Gross and net yields calculated are based the % for the shares of the C category (based upon start price of € 10,000 per share)4. Yields are calculated based upon the preferential distibution for the intial ‘A’ and ‘B’ shares
05Future
Room to Bloom transaction
Acquisition process of Room To Bloom Portfolio
• PART 1: 100% acquisition of shares of SAGI NV– Change of name to Room To Bloom NV
– Financed with cash and capital increase fam. CostermansEUR 7,5 Mio
• PART 2: Per 29/09: 9 properties with 132 units were acquired
– Financed with cash and capital increase fam. CostermansEUR 11,6 Mio
• PART 3 & 4: Further acquisition of Room to Bloom portfolio
16,2 Mio
• Blindestraat 4,6,8• Gratiekapelstraat 2,4 and 6
• Paardenmarkt 67,70, 93 en 100
• Rijnpoortvest 19-21• Rodestraat 2, 15, 17 en 31
DONE
DONE
TO GO
Further Room To Bloom …
05
2.000 rooms before 2026
• Further growth in Brussels, Liege and Antwerp• Entry in new cities: Leuven and Ghent
483 615
759
2 000
30/06/2017 30/09/2017 After R2B 2026
06Proposal
Proposal – Capital Increase
06
Main characteristics of capital increase
Description
Capital Increase Max. 10 Mio €
Max. nr. of shares 761
Inscription Period To be communicated shortly
Emission price € 13.137,25
Min. Number of shares 8
Distribution costs 2%
Min. ticket € 105.100
Thank you
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