20% - IEIF

La consolidation des foncières :
enjeux et perspectives ?
Jean-Michel Gault
Laurent Gauville
Klepierre
Gestion 21
Directeur général
délégué
Directeur général
délégué
Réunion du 30 juin 2016
Philippe Le Trung
Directeur Communication
et Corporate Development
Foncière des Régions
La consolidation des foncières :
enjeux et perspectives ?
Philippe Le Trung
Directeur Communication
et Corporate Development
Foncière des Régions
Réunion du 30 juin 2016
SOMMAIRE
> CONTEXTE
> POURQUOI LA CONSOLIDATION
> ET DEMAIN?
PRÉSENTATION IEIF 30/06/2016
3
LA CONSOLIDATION EN MARCHE
Quelques chiffres en Europe:
 2014 : 130Mds€ M&A
 2015 : 21,6Mds€ de levée de fonds propres
(VS 14,4Mds€ en 2007)
Enjeu stratégique pour une foncière?
Croître
Se consolider
Lever de l’equity
PRÉSENTATION IEIF 30/06/2016
4
ET DU CÔTÉ DES ETATS-UNIS?
Capitalisation moyenne
Nombre de REITS
200
6
Disparité des foncières cotées
en Europe VS Etats Unis
5
150


5 fois plus grand en 15 ans
La taille des REITS augmente quand
leur nombre augmente ou diminue
100
3
2
50
1
0
0
années
PRÉSENTATION IEIF 30/06/2016
5
Nombre de US equity REITs
Etats-Unis : une tendance forte
sur le long terme à la
consolidation
4
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
En dessous de 200M€, la taille
moyenne des foncières est deux fois
plus petite en Europe qu’aux EtatsUnis
Capitalisation moyenne (Mds $)

POURQUOI UN TEL INTÉRÊT POUR LA CONSOLIDATION?
Les fonds propres

Actions : des gestions actives « passives » et de plus en plus de gestion passive

Liquidité
La dette

Accès au marché obligataire

Pratiques des investisseurs obligataires

Agences de notation favorisent les foncières de grande taille
Les raisons industrielles

Risque ? Talent ?

Synergies ? Pricing Power ?
PRÉSENTATION IEIF 30/06/2016
6
Les sociétés de grande taille plébiscitées par le marché
1,50
1,40
Uni bail-Rodamco
1,30
P/ANR (x)
1,20
Kl epierre
1,10
Deutsche Euroshop
Eurocommercial
Mercialys
1,00
Pa t & Com
Sel ectirente
Va s tNed
0,90
Ci tycon
Wereldhave
0,80
0
5
10
15
20
25
Capitalisation (Mds€)
Sources:
Capitalisation et valeur de l’action sur le marché le 21/06/2016
Dernières valeurs de l’ANR communiquées par les sociétés
PRÉSENTATION IEIF 30/06/2016
7
ET DEMAIN?
QUELQUES MOUVEMENTS POSSIBLES
Cession d’actifs et retour de capital aux actionnaires ?
Certaines sociétés lèveront des fonds propres pour croître?
Des petites et des moyennes sociétés se rapprocheront pour atteindre une
taille critique ?
Des grandes sociétés achèteront des petites avec une décote?
Des rapprochements transfrontaliers ?
Des grandes sociétés conduiront des opérations de fusion-acquisition avec
d’autres de même taille?
PRÉSENTATION IEIF 30/06/2016
8
La consolidation des foncières :
enjeux et perspectives ?
Jean-Michel Gault
Directeur général délégué
Klepierre
Réunion du 30 juin 2016
Klépierre, Retail Only®
KLEPIERRE-CORIO MERGER:
A LEADING PAN-EUROPEAN
PURE RETAIL PROPERTY
COMPANY
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
SIGNIFICANT SCALE-UP OF FOOTPRINT IN
CONTINENTAL EUROPE
JULY
2014
Klépierre franchise enhanced across Europe
Klépierre (1)
(June 2014)
Corio
(June 2014)
COMBINED
No. of countries covered
13
+
7 (2)
16
No. of shopping centers
125
+
57
182
Total footfall (million)
750
+
400
1,150
Total GLA (million sqm)
2.8
+
1.7
4.5
€14.0bn
+
€7.3bn
€21.3bn
Gross Asset Value (100% share) (3)
(1)
(2)
(3)
Pro forma of Swedish disposals (5 assets)
Corio’s reporting is based on 6 countries as its single asset in Portugal is reported under Spanish division
Total share including transfer duties
Leading pan-European retail pure player
6,8
26,8
Retail properties
6,2
21,3
9,2
Unibail
Rodamco
Klépierre
+ Corio
Intu
Other properties
9,2
8,3
7,9
5,1
3,3
2,7
British
Land
Hammerson
Land
Securities
Deutsche
Euroshop
Eurocommercial
Properties
0,1
2,5
Mercialys
Source: Companies
Note: Unibail Rodamco, Klépierre + Corio, Hammerson, Mercialys as of June 30, 2014; British Land, Land Securities, Eurocommercial as of March 31, 2014; Intu as of December 31, 2013; Deutsche
Euroshop as of December 31, 2013, property investments and equity participation; GBP/EUR FX rate of 0.8, 0.826 and 0.83 for June 30, 2014, March 31, 2014 and Dec 31, 2013 respectively
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
11
A PAN-EUROPEAN FOOTPRINT WITH LEADING
JULY
POSITIONS IN MAIN COUNTRIES
France / Belgium: # 2
Klépierre (1)
assets
sqm
 GAV: €6.6bn
Corio (2)
assets
sqm
 GAV: €1.5bn
 35
 12
 13
 969k
 264k
 415k
47 assets (€8.1bn)
Klépierre
Corio (2)
Klépierre
assets
sqm
 GAV: €0.7bn
assets
sqm
 GAV: €3.4bn
 699k
20 assets (€3.4bn)
13 assets (€1.8bn)
 10
 278k
 169k
Germany
#1
Klépierre
Corio (2)
 13
Corio
 20
assets
sqm
 GAV: €1.8bn
Iberia: # 2
Klépierre
2014
Nordics: # 1
The Netherlands: # 1
Corio
5
assets
 255k sqm
 GAV: €1.0bn
assets
sqm
 GAV: €0.6bn
#1
5 assets (€1.0bn)
23 assets (€1.3bn)
Italy: # 1
Klépierre
Corio (2)
Klépierre
assets
sqm
 GAV: €1.5bn
CEE / Greece / Turkey
#2
 28
 10
 324k
 318k
assets
sqm
 GAV: €1.8bn
 29
assets
sqm
 GAV: €1.1bn
 506k
#2
Corio
7
assets
 250k sqm
 GAV: €0.5bn
#1
36 assets (€1.6bn)
38 assets (€3.3bn)
Combined GAV by geography
Legend:
Klépierre presence
Corio presence
Klépierre and Corio presence
182 shopping centers in 16 countries
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
CEE / Greece / Turkey
Germany
8%
5%
Iberia
France
6%
39%
The Netherlands
Nordics
9% Italy
17%
16%
12
TOP 24 ASSETS (1/2) - 41% OF COMBINED TOTAL
SHARE ASSET VALUE
Klépierre asset
1
2
Créteil Soleil
(Paris region,
France)
18 M visitors
126,000 sqm
4
3
Val d’Europe
(Paris region,
France)
16 M visitors
98,000 sqm
5
Field’s
(Copenhagen, Denmark)
7 M visitors
91,000 sqm
7
10
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
Emporia
(Malmö,
Sweden)
6 M visitors
68,000 sqm
Hoog Catharijne
(Utrecht, Netherlands)
26 M visitors
89,500 sqm
9
Blagnac
(Toulouse, France)
7 M visitors
48,000 sqm
11
Campania
(Napoli, Italy)
11 M visitors
108,000 sqm
Porta di Roma
(Roma, Italy)
19 M visitors
130,000 sqm
6
8
Grand Littoral
(Marseille, France)
12 M visitors
110,500 sqm
Corio asset
Akmerkez
(Istanbul, Turkey)
9 M visitors
33,200 sqm
Boulevard Berlin
(Berlin, Germany)
11 M visitors
87,100 sqm
12
Le Gru
(Torino, Italy)
13 M visitors
78,500 sqm
13
TOP 24 ASSETS (1/2) - 41% OF COMBINED TOTAL
SHARE ASSET VALUE
Klépierre asset
13
14
Rives d’Arcins
(Bordeaux, France)
6 M visitors
53,000 sqm
16
Brunn’s Galleri
(Aarhus, Denmark)
11 M visitors
25,600 sqm
17
La Gavia
(Madrid, Spain)
13 M visitors
82,800 sqm
19
L’esplanade
(Brussels region,
Belgium)
8 M visitors
55,700 sqm
20
Odysseum
(Montpellier, France)
6 M visitors
71,800 sqm
22
Claye-Souilly
(Paris region,
France)
6 M visitors
61,200 sqm
23
Alexandrium
(Rotterdam, Netherlands)
9 M visitors
108,000 sqm
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
Nový Smíchov
(Prague, Czech Republic)
19 M visitors
58,200 sqm
Corio asset
15
Arcades
(Paris region,
France)
17 M visitors
63,000 sqm
18
Jaude
(Clermont-Ferrand,
France)
10 M visitors
40,900 sqm
21
Grand Place
(Grenoble, France)
13 M visitors
94,100 sqm
24
St.Lazare Paris
(Paris, France)
0.5 M daily visitors
11,900 sqm
14
REINFORCED FOOTPRINT IN KEY STRATEGIC
REGIONS
Wider coverage of regions and cities offering favorable demographic growth dynamic, high
purchasing power and strong barriers to entry
1.
1
Greater Paris Area
2.
2
The Netherlands
3
3.
Southern Scandinavia
4
4.
Northern Italy
5
5.
South of France
3
2
1
5
4
Legend:
Klépierre presence
Corio presence
Klépierre and Corio presence
Canary Islands
Additional spots in capital cities and popular tourist destinations: Algarve, Barcelona,
Berlin, Budapest, Istanbul, Madrid, Prague, Rome, Tenerife, Warsaw
MUST-HAVE DESTINATIONS FOR LEADING INTERNATIONAL RETAILERS
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
15
CAPTURING ADDITIONAL RENTAL GROWTH BY
LEVERAGING BEST PRACTICES AND KNOW-HOW
1
Consistently deploy active
leasing strategy on a
broader platform
•
•
•
Accelerate cash flow growth
Proven benefit from Simon Property Group best
practices
Property-by-property approach focused on
increasing franchise value
Anticipate trends to accelerate re-tenanting
•
2
Accelerate portfolio
refocus on best assets
•
•
Non-core asset disposals to fund pipeline
Apply best discipline in capital management
3
Upgrade portfolio through
development of leading
assets
•
•
Selective approach by project
Enhanced by Klépierre’s and Corio’s ability to
create additional rents
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
16
1
CONSISTENTLY DEPLOY ACTIVE LEASING
STRATEGY ON A BROADER PLATFORM
Refresh and update merchandising mix on an asset-by-asset basis, based on asset’s
catchment area
Offer best-performing retailers
the most suitable format
Accelerate cross-country
fertilization of international
retailers
Favor expansion of new retail
concepts
A KEY PARTNER IN RETAILER OUTPERFORMANCE
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
17
2
ACCELERATE PORTFOLIO REFOCUS
ON BEST ASSETS
Has demonstrated capital management
acumen in the past few years
Has experience in refocusing portfolio
on increasing asset quality
€3.6bn disposed since 2012
€2.2bn disposed since 2008
Sale prices close to appraised values
31 assets sold in 2013 and 2014

Companies to continue targeted disposal plans

Combine knowledge to accelerate portfolio refocus on core assets

Strong balance sheet maintained to fuel development opportunities

Strategic investment for Simon Property Group, which will continue to assist in portfolio
refocus
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
18
3
UPGRADE PORTFOLIO
THROUGH DEVELOPMENT OF LEADING ASSETS
Recent openings
Saint Lazare (Klépierre)
Successful transformation of busiest
train station in Paris (realized)
Rives d’Arcins (Klépierre)
Nave de Vero (Corio)
Creation of the leading retail hub in
Bordeaux
Newly developed shopping centre near
Venice covering 38,800 sqm opened
with 98% occupancy
L’esplanade (Klépierre)
Hoog Catharijne (Corio)
On-going developments
Val d’Europe (Klépierre)
Capitalizing on the most successful
development in the Greater Paris
Area
30,000 sqm extension focused on
luxury shopping
Ambitious project to take advantage
of Utrecht’s train station footfall
• Proven track record in project selection, management, and leasing
• More than 350,000 sqm of additional shopping areas targeted by 2018
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
19
A VALUE CREATING TRANSACTION WITH
C. €60M RUN RATE SYNERGIES IN 3-5 YEARS
JULY
2014
50% REVENUE SYNERGIES
Active re-tenanting
Development of specialty leasing
Cross-selling opportunities with experienced leasing and asset management
teams
50% OPERATIONAL AND FUNDING IMPROVEMENT
Releasing new economies of scale through centralized procurement function
(cleaning, safety, and energy)
Sharing of best practices
Financial savings through gradual refinancing of Corio’s debt, with the benefit of
Klépierre’s better credit profile
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
20
CORIO INTEGRATION: DELIVERING
OPERATING COST SYNERGIES FASTER
OUR COMMITMENT
JULY
2015
OUR ACHIEVEMENTS
— Well on track to meet and exceed the targeted synergies
for 2015
— Operating cost synergies(1) ahead of schedule
€20 M
worth of operating
cost synergies within
3 to 5 years
20%
60%
of targeted synergies
implemented during
H2 2016
20%
of targeted
synergies
implemented by
December 2015 (2)
OPERATING
COST
SYNERGIES(1)
of targeted
synergies
implemented during
H1 2016
(1) G&A expenses
(2) Full impact in P&L to be recorded in 2016
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
21
YEAR-ON-YEAR
OPERATING KPI IMPROVEMENTS
YEAREND
2015
Bad debt allowance(1)
Operating costs and
environmental performance
EPRA vacancy rates(1)
-13%
4.4%
2.3%
Energy consumption (kWh/visit(2))
3.8%
1.9%
76%
Waste enhanced (+11% vs 2013)
3.5%
1.7%
1.7%
1.7%
€10.4M
3.2%
3.0%
Cumulative energy savings(2)
-13%
FY
2013
H1
2014
FY
2014
H1
2015
FY
2015
FY
H1
FY
H1
FY
2013 2014 2014 2015 2015
Green House Gaz (GHG)
emission on portfolio(2)
(1) H1 2015 and 2015 include former Corio assets. H1 2015 vacancy rate includes Boulevard Berlin and Centrum Galerie, which restructurings have been finalized in H2 2015.
(2) Like-for-like change pro forma vs. 2013.
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
22
FAST IMPLEMENTATION
OF FINANCIAL SYNERGIES
OUR COMMITMENT
HIGHER, BETTER AND FASTER
JULY
2015
BOND
BUYBACKS
€10 M
of financial synergies
within
3 to 5 years
DERIVATIVE
CREDIT LINE
RESTRUCTURIN
REPACKAGIN
G
G
— 25% of Corio’s outstanding debts and 100% of its credit
lines already refinanced
— €308 M of bonds (3.9% average coupon) repurchased
— Replacement of short-term credit lines of €850 M by a
new 5Y+1 +1 syndicated RCF
— Commercial papers switched over to Klépierre’s program
— €486 M of swaps restructured
— €880 M of bond issuances with record low yields (1.12% in
average)
— €50 M of Klépierre notes (4% coupon) repurchased
— Amendment & 2Y extension of €750 M Klépierre syndicated
RCF
— €900 M of fixed rate swaps terminated or extended
TARGETED FINANCIAL SYNERGIES
ACHIEVED AND EXCEEDED IN 2015
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
23
2015 REFINANCINGS:
LONGER DEBT / LOWER COST
YEAREND
2015
Active debt management
Bond issuance
& buybacks


Credit line
repackaging
€M
US Private
Placement
redemption
>60% of former Corio’s debts already refinanced
(Bonds, US Private Placements repurchased and Revolving
Credit Facilities)
Exceptional refinancing conditions with,
for instance, a new 8Y benchmark bond issue
for €750M at 1% coupon in April 2015
Bonds
Repayment
New
financings
-358
Revolving
Credit
Facilities
US Private
Placements
Amend
& extend
1,177
1,600
-934
DEBT REDEEMED
NEW FINANCINGS
Weighted Average Maturity <3Y
AVERAGE YIELD ≈ 4.8%
Weighted Average Maturity >7Y
AVERAGE YIELD: 1.7%
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
24
SUCCESSFUL INTEGRATION OF CORIO
YEARLEADING TO HIGHER AND FASTER SYNERGIESEND
2015
Expected costs synergies delivery schedule
(€M, P&L impact before tax)
(1)
G&A costs synergies
Financial costs synergies
67
60
32
34
32
19
28
35
2016e
2017e
15
2015
Successful and rapid
integration of teams and
assets
Faster than expected
delivery (full impact in 2017)
Higher than expected
(1) General & Administrative.
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
25
HIGH VISIBILITY ON CASH FLOW GROWTH
PROSPECTS
47.2%
Guidance
2.23 – 2.25
45.8%
43.6%
43.6%
2.16
2.07
2.07
LTV at current
level or below
39.2%
1.99
1.99
2011
2012
37.6%
1.96
2010
2013
2014
Net current cash flow per share (€)
KLEPIERRE — IEIF PRESENTATION — June 30, 2016
2015
2016
LTV
26
La consolidation des foncières :
enjeux et perspectives ?
Laurent Gauville
Directeur général délégué
Gestion 21
Réunion du 30 juin 2016
La consolidation des foncières : enjeux et perspectives ?
30 Juin 2016
28
Exemples d’opération de consolidation
Vonovia - Gagfah
Résidentiel allemand
8 Mds d’actifs
Icade - Silic
Parc d’affaires France
3.5 Mds d’actifs
Klepierre - Corio
Alstria – Deutsche Office
Centres commerciaux zone euro
7 Mds d’actifs
Bureau Allemagne
2 Mds d’actifs
29
Perspectives sur la consolidation
Les moteurs de la consolidation
• Management : notoriété/revenus fonction de la taille
• Entrepreneur : option de sortie avec la disparition de la décote d’illiquidité
• Actionnaire majoritaire ou important : liquidité/changement modèle économique
• Valorisation du secteur : décote
• Fragmentation du secteur : gisement d’opérations de consolidation
• Avantage identifié : effet portefeuille/diversification du passif
30
Perspectives sur la consolidation
Les freins à la consolidation
• Culture entrepreneuriale axée sur la croissance organique
• Consolidation assimilée à une simple course à la taille
• Valorisation du secteur : surcote
• Défense des actionnaires minoritaires
31
Conclusion
• L’analyse des moteurs/freins très favorable à la poursuite de la consolidation.
• Le niveau actuel des taux d’intérêt et du PIB favorisent ce mode de croissance
• Toutefois, la spécialisation des foncières sur une typologie d’actif et la polarisation
du marché (prime/non prime) limitent le nombre de cibles éligibles à la consolidation
La consolidation des foncières :
enjeux et perspectives ?
Jean-Michel Gault
Laurent Gauville
Klepierre
Gestion 21
Directeur général
délégué
Directeur général
délégué
Réunion du 30 juin 2016
Philippe Le Trung
Directeur Communication
et Corporate Development
Foncière des Régions