Carmila : 2019 Annual results presentation slideshow

1 4 F e b r u a r y 2 0 2 0

2019 Annual Results

I N T R O D U C T I O N

Local presence is a key factor for success and a powerful growth driver

2

2019: a succesfull year for Carmila and its retailers

The retailers' revenues show a substantial rise,…

Change in retailers' revenues*

during 2019 compared to 2018

2.1%2.0%

1.7%

	France	Spain	Italy
	(*) Change in retailers' revenue on a like for like basis.
	(**) Recurring earnings are equal to EPRA earnings excluding certain non recurring or non cash items (restated for the net impact of
	IFRS 9 adjusting the effective interest rate of the debt to the original interest rate at inception and recognising an income over the
3	residual duration and for debt issuance costs amortised on a straight-line basis over the duration of the loan) and including debt
issuance costs paid during the year.

• just like Carmila's 2019 recurring earnings per share

Recurring earnings** per share

€1.63 per share +6.6%

Above target for 2019

of a growth between +5.0% and +6.5%

2 0 1 9 A N N U A L R E S U L T S

1. year with well-oriented macro- economic indicators in the countries where Carmila operates…

... and social unrest

in France with a limited

Unemployment rates decreasing*

in all our countries

Growing GDP

And increasing consumption indexes

	15.3% 14.2%
9.1%	10.6%	10.0%
8.5%

France Spain Italy

2.0%

1.3%

0.2%

France Spain Italy

1.4% 1.2%

0.5%

impact on the activity

of our retailers

Change in Carmila retailers'

revenues** in France /

December 2019

(Dec. 19 vs Dec. 18)

-0.4%

Reminder +2.1% /12 months

France Spain Italy

Sources: OECD Economic Outlook No 106 - November 2019 / Banco de España / Federdistubuzione

(*) Comparison of national unemployment rates 2018 and 2019(e)

4 (**) Change on a comparable basis

2 0 1 9 A N N U A L R E S U L T S

A year however marked by a number of operational challenges…

Example in France

A varying situation depending on the business sector

Remarkable results were recorded due to the strong dynamism

of Carmila's commercial teams

(Change in retailers' revenues - 2019 vs 2018**)

***

Services	+5.1%	+0.5%
Health and Beauty	+3.1%	+3.7%
Food & Restaurants	+3.3%	+0.9%
Household equipment	+3.5%	-5.9%
Clothing and accessories	+0.8%	-1.7%
Culture, gifts and leisure	+1.0%	-1.5%

1. Excluding renewals, leases on promotional projects, specialty leasing and pop-up stores (**) Change in retailer sales on a comparable basis

Number of leases signed during the year*

436

416

358

Number of retail brand lease terminations received during

the year

2019

228

2018

230

2017

163

5 (***) CNCC indexes : change in retailer sales on a constant basis - 12 months 2019 compared with 12 months 2018.

2 0 1 9 A N N U A L R E S U L T S

… where agile retailers perform well

In competitive sectors which have to face changing consumption trends, the most flexible brands

are growing their business

(Change in revenues of retailers* in the Carmila portfolio - 2019 vs 2018)

H&M	+5% France	+6% Spain
Mango	+14% France	+12% Spain
Zara	+4% France
Kiabi	+6% France
Pandora	+15%
Cléor	+8%

Relevant local players, differentiating and effective

Partners with a strong development of their business

6 (*) Change in retailer sales on a comparable basis

2 0 1 9 A N N U A L R E S U L T S

Carmila's growth since its creation

is the result of an effective positioning and business model

A portfolio with a strong presence in its catchment area at the core of its customers' expectations

A varied portfolio offering a strong visibility and sustainability on the business

An experienced and specialised entrepreneurial and innovative team

A strategic partnership with Carrefour that creates value

Key and easily accessible urban locations

Well-established local leadership

Expert teams with a retail DNA

7	2 0 1 9 A N N U A L R E S U L T S

Carmila's shopping centres,

with a strong presence in their city, are at the core of their customers' expectations

What makes Carmila stand out from any other real estate company?

The retail brands reply*

7		its local network
	6	its capacity to listen,
	empathise combined with a local presence

retail brands out of 10

For our retail brands and our retailers, the shopping centre of tomorrow will be …*

Multi-functional

Accessible,

practical

and useful

8 (*) Survey carried out in December 2019 with Carmila retail brands and retailers in France and Spain

2 0 1 9 A N N U A L R E S U L T S

A varied portfolio offering a strong visibility and sustainability of the business

Wide geographic

diversity

215 sites - 3 countries

72%* France

129 sites

5%* Italy

8 sites

23%* Spain

78 sites

(*) as a % of the appraisal value including transfer taxes at 31/12/19

9 (**) as a % of annualised rents at 31/12/19

Local shopping centres

with well-establishedlocal

presence

81%

88%

leaders or co-

leaders sites

1. varied

and balanced portfolio

Top 15 tenants

**

18.8%

of gross rental

income

Distribution of portfolio

of leases by business

sector**

8%

Services

34%

18% Health

Clothing and

and Beauty

57%

accessories

13% Food &

of service

8%

and

Restaurants

restaurant

activities

Household

furnishings

18% Culture, gifts and leisure

2 0 1 9 A N N U A L R E S U L T S

An experienced and specialised entrepreneurial and innovative team

Sales teams in regional areas	Local digital marketing
specialised on our local sites	dedicated to the retail brands'
	performance

Specialty leasing and pop-up	Carmila Retail Development:
stores, an integral part	partnerships to boost the offer
of our offer strategy	and future growth

Intrapreneurs leveraging a portfolio of 215 sites and taking advantage of our closeness to Carrefour

Digital innovation shared with the retail brands

10	2 0 1 9 A N N U A L R E S U L T S

A strategic partnership

with Carrefour that creates value

A key shareholder

Co-owner and co-operator across all our sites

A partner for our developments: pipeline and mixed use

The history

of Carrefour at the core

of Camila's positioning

Centres connected to their region, Retail places for more than 50 years

Easy to reach / deeply part of the urban environment

A commercial momentum constantly adapting to meet customers' needs and desires

Anchored by Carrefour food retail

power

11	2 0 1 9 A N N U A L R E S U L T S

1. strong core business

12

Performances over the year proved that the core of the Carmila business is robust

Retailers' revenues show a	The letting activity is
substantial rise*	active…

Change in retailers' revenues*

during 2019 compared to 2018	Number of leases signed**
			over financial year 2019
2.1%	2.0%	1.7%		Number of leases
			in the portfolio

826	On 1 January 2019

…and the occupancy

rate high

Financial occupancy rate***

96.0%

96.4%

96.2%

96.3%

France Spain Italy

(*) Change in retailers' revenue on a like for like basis.

(**) Excluding extensions and contracts signed in specialty leasing and pop-up stores.

13 (***) Financial Occupancy Rate, excluding strategic vacancy

Vs 768	6,279
2018E

Dec-16Dec-17Dec-18Dec-19

2 0 1 9 A N N U A L R E S U L T S

A diversified portfolio of leading centres, strongly established in their catchment area

15					125
				Local shopping
Regional Shopping					centres**
Centres**
80 to 150 stores	81%
			in value
75	of Regional Shopping
	Centres
Large shopping		and Large Shopping	88%
centres**		Centres**	are leader or
40 to 79 stores					co-leader* sites

	(*) Leaders: leading shopping centre in its area in terms of number of commercial units (Codata) or shopping centre with more than 80 commercial units in France and 60
	in Spain and Italy. Co-Leader:non-leading shopping centre attached to a leading hypermarket in its commercial area in terms of revenue (Nielsen) or generating revenue of over
	€100 M in France and €60 M in Spain and Italy.	2 0 1 9 A N N U A L R E S U L T S
14	(**) CNCC Classification - as a % of the appraisal value including transfer taxes at 31/12/19

Local presence, the common theme in our portfolio regardless of centre size

Regional Shopping Centre	Large Shopping Centre	Local Shopping Centre
Thionville	Rennes	Grenoble

• A shopping centre created in 1971	• A medium-sized shopping centre to which
by Thionville retailers, which gradually	a 30-store extension was added in 2019.
became a regional shopping centre	Today 70 stores

• 162 stores - 7.5 million visit./year
• Carrefour, Zara, H&M, a well-established food court

• A small shopping centre (14 stores) that cannot be extended owing to lack of space
• Within the best catchment area in Grenoble

Regional but very local.

An institution in Thionville since it opened

Very well-establishedin a district of Rennes with strong purchasing power, this is a large local shopping centre with a different use from that of the Rennes Alma regional shopping centre (Unibail 15mn away by car)

A local shopping centre very effective and very much in demand with retail brands

Financial occupancy rate*

Financial occupancy rate*

100%100%

Financial occupancy rate*

100%

15 (*) Financial Occupancy Rate, excluding strategic vacancies

2 0 1 9 A N N U A L R E S U L T S

Unique expertise in local digital marketing implemented across the whole portfolio …

Distributed marketing: tools and systems centrally designed

and implemented in 215 shopping centres

Perfect knowledge of consumers' behaviour	…thanks to expertise in data
and motivations in each catchment area…	collection and analysis

16	2 0 1 9 A N N U A L R E S U L T S

An ever-strongerlocal

digital presence...

Being present when the customer searches

for shopping information close to the shopping centre

101 million searches in Google "My Business" bring up our pages

Create loyalty and have fun in mall

2.8 million points of contact in local databases

+25% vs n-1*

Promote our local communities

238 million impressions of our Facebook posts

x5 vs Dec 2018 local ambassadors on Instagram (25 influencers)

+188%

vs n-1*

1.1 million

in-mall players

Carmila,

ultra-innovativedrive-to-store

local solutions

X

1st Beta tester of Google drive-to-store

IA in France

A key partner of the major market players to innovate

17 (*) versus year 2018

2 0 1 9 A N N U A L R E S U L T S

… to enhance retail brands business in a structured approach

still more marketing operations

to provide news locally on our retailers

10,000+		Local and multi-local operations
Operations in 2019	x 2	carried out on behalf of the retailers

long term*	+67%in 2019 vs 2018
Number of retailers supported in the

1. Retailers who benefited from more than 6 "Kiosque" support operations during the year, with a similar background to 2018 and a similar store in the Carmila network: +4.4pts of outperformance.

18 (**) Retailers in the previous group who benefited from at least €2,000 support during the year

To illustrate, for a €2,000

campaign implemented by Carmila, a retailer supported in the long term will have, on average, outperformed its Carmila network** by

+8.1pts

of outperformance revenues**

2 0 1 9 A N N U A L R E S U L T S

Stronger and faster CSR commitments

45 shopping centres certified BREEAM in-Use

7,000 trees planted with Reforest'action

Formalisation of our environmental policy

1,526 CSR operations, i.e.1,652 action days organised in the shopping centres, or +14% vs 2018, of which:

• Partnerships with MIIMOSA & SECOURS POPULAIRE
• 28 events in conjunction with ACT FOR FOOD
• 22 tonnes of clothes collected during solidarity second-hand clothing sales (vide-dressing)
• 7 Spanish shopping centres took part in the World Clean Up Day
• Promotion of social diversity during Diversity Day in Italy

147 TOO GOOD TO GO partner retailers

• Business Immo digital innovation prize for the IoT to support CTM and the development of our environmental platform
• Prize for the best CSR initiative for the "Save water, it's the heart of life" campaign (14,000 litres of water saved in 1 year)
  (*) Appraised value including transfer taxes on certified assets / appraisal value including transfer taxes in the portfolio of shopping

centres

19 (**) Centralized Technical Management

35%	61%	Objective
certified	certified	75%
at end
at end
2018
2019*
		certified
		at end 2021

Launch of new projects:

Charter for responsible purchases, charter for biodiversity, solidarity Christmas markets…

2 0 1 9 A N N U A L R E S U L T S

"Ici on agit", programme of responsible initiatives

Here we act for

the local momentum:

By working with retail brands and retailers to develop local attractiveness

By making our shopping centres local focal points and sites

of community expression

By establishing close relationships with our suppliers and our partners

Here we act for the planet:

By incorporating our assets in the city of the future

By limiting the environmental impact of our activity

By Protecting biodiversity

Here we act for our teams:

By revealing everyone's potential

By being an inclusive

and collaborative business

By guaranteeing a trusting environment

20 (*) Here, we are taking action

2 0 1 9 A N N U A L R E S U L T S

1. growing core business

21

To create growth by generating organic growth

Growth of net rental income

2019 vs 2018

Net rental income in €M

+6.2%

+13.4% 333.2

313.7

276.7
Organic growth
	+3.1%

Organic	Reversion /
growth	renewal
+2.2%	+9.0%
+5.5%	+4.2%
+3.3%	+1.5%

3.1%

2.2%

1.5%

Other effects*

-0.6%

2018 acquisitions

+€6.9M (Vitrolles, Spanish assets)

Extensions delivered in 2018

+€3.8 M (Athis-Mons, Besançon, Evreux,

Cap Saran) and 2019 + €0.8 M

(Rennes Cesson)

Organic growth of net rental income

2017 2018 2019

(of which indexation 1.6 pt)

22 (*) in particular including strategic vacancies

2 0 1 9 A N N U A L R E S U L T S

Transforming our assets to create value and reinforce the portfolio's resilience: e.g. Géric, Thionville

162

stores

7.5 million visitors per year

23	2 0 1 9 A N N U A L R E S U L T S

Transforming our assets

to create value and reinforce the portfolio's resilience

e.g. Géric, Thionville

On acquisition in 2015

• Leading Site in its catchment area 100% occupied

Change in appraisal value

€127.8 M*	+€52.8 M	€180.6 M
Cap. rate	Invest.	Cap. rate
5.45%	€7.9 M€	4.83%

	Strengthening the merchandising-mix	Change in net rental income
	• Acquisition of medium-sized retailers: Gautier	(in €K)		8,713 K€
	and former Autour de Bébé (2016) - Jardiland (2017)
	• Restructuring of former Go Sport into 5 units			289
	• Resiliation/relet operations (Sephora, Columbus,			+1,464 K€
	Orange, Waffle Factory, etc.)		284
	• Renewals of expired leases (reversion +15%)		8,424
	Asset management	6,966
	• Reduction in the amount of unbilled charges (GRI/NRI	2015 acquisition	Acquisitions MS	31/12/2019
	95% vs 88% on acquisition)
24	(*) Exit tax at the seller's expense (€20M)			2 0 1 9 A N N U A L R E S U L T S

To develop extensions that reinforce the leadership and attractiveness of assets with potential …

An extension that meets a demand

Extension fully let

2nd

urban area hypermarket

70 Number of stores

+30

The shopping centre after opening of the extension in November 2019

70 shops and medium-sizedstores over 13,000 sqm

€3.9 M of gross rental income €47.8 M of market value

25	2 0 1 9 A N N U A L R E S U L T S

Our pipeline, historically selective and value creator

Projects	19
delivered
2016 - 2019

€435

M

+€31

M NRI

YoC Carmila*	7.2%

	PIPELINE		PIPELINE
Extension	25	2 delivered
projects
2019 - 2024			Extension
	19
			projects
	€1.41	4 on standby	2020 - 2024
	billion
			€1.3
			billion
	+€83.5		+€80
	M NRI		M NRI
YoC	7.1%		7.2%	YoC
developer**		developer**

30 June	31 December
2019	2019

10%

various

projects

90%

9

flagship projects

9 priority projects over 2020 - 2024

Nice Lingostière (work in progress) Vitrolles (final permits obtained) Tarassa

Montesson Antibes

Aix en Provence Thionville Toulouse Labège Venissieux

(*) Carmila yield on cost including the acquisition of 50% of the project to Carrefour at market price

26 (**) Yield on cost at the JV level before exercice of the put and call options by Carmila and Carrefour

2 0 1 9 A N N U A L R E S U L T S

Acquisitions: concentrate on assets with potential

Acquisitions made since 2014

		NRI of	Average	Valuation	NRI of	Average
		occupied	occupied
Number	Acquisition price	NIY
units	NIY	31/12/19	units
29	€2.0 billion	115 M€	5.83%	€2.4 billion	€129 M	5.45%

No acquisitions in 2019 as there were no sufficiently attractive opportunities financially and strategically speaking

27	2 0 1 9 A N N U A L R E S U L T S

Results proving successful momentum of the business

28

EBITDA up by 6.9%

Reconciliation between Rental Income and EBITDA* in €m

20182019

Gross Rental income				340.3				359.5
Property expenses				-26.6
						-26.3
Net Rental Income			313.7			333.2
Operating expenses			-50.6
				-52.8
Other operating		-1.4				-0.3
income and
expenses
Equity
accounted		2.7				2.6
companies
EBITDA		264.3			282.6
	6.9%

Productivity

improvement:

The EBITDA/Rental Income conversion rate improved by 90 bp to 78.6%

29 (*) Operating income excluding depreciation, provisions for contingencies and charges, change in fair value and gains on disposal

2 0 1 9 A N N U A L R E S U L T S

Strong growth in recurring earnings, above our objective

Recurring earnings* in €M

+13.5%	+7.2%
		222.5
	207.5

182.9

2017

2018

2019

Recurring earnings per share

€1.63/share

+6.6%

Reminder of the 2019 objective: Growth between +5.0% and +6.5%

30 (*) EPRA earnings restated for non-recurring and non-cash items

2 0 1 9 A N N U A L R E S U L T S

Appraisers stabilised the valuations of our assets in the second half, after a slight drop in the first half

€6,421 million

Market value	-0.4%
including transfer taxes	H1-2019
€4,615 million	-0.9%

€1,449 million +0.8%

€357 million -0.1%

Like for like change

+0.7%	+0.3%	-1.1%	+0.3%	-0.9%
H2-2019	FY 2019	H1-2019	H2-2019	FY 2019
+1.2%	+0.3%	-1.9%	+0.6%	-1.3%

-0.9%

0.0%

+0.8%

-0.9%

0.0%

+0.7%

+0.7%

-0.1%

+0.7%

+0.7%

31	2 0 1 9 A N N U A L R E S U L T S

The portfolio's net potential yield stabilised over the second half of the year

5.90%	Change	Change
	H2-2019	/12 months
Net potential yield* 5,91%	-1bp	+13 bps

5.68%	-2bps +14 bps	of which market
/12 months	+24 bps
			impact

6.54%

+7

bps +14 bps

6.18%

+2

bps +2 bps

Sustainable rents

Realistic rental values for vacant premises

Recent renovations included in the portfolio

Stable occupancy rate

Reasonable occupancy cost ratio

32 (*) Value as at 31/12/19

2 0 1 9 A N N U A L R E S U L T S

EPRA NAV per share showed a moderate drop of €0.6 over 12 months after payment of a €1.50 dividend

Breakdown of the change in EPRA NAV

In euro per share

28.39

1.50

1.62

0.66

27.79

26.89

NAV	2018	NAV after	Recurring	Change in	Other	NAV
31/12/2018	Dividend	dividend	earnings	asset values	changes	31/12/19
			2019	2019

EPRA Net Asset

Value

At 31/12/19 - fully diluted

€27.79/share

33	2 0 1 9 A N N U A L R E S U L T S

Take advantage of the interest rate environment to reduce the cost of debt while maintaining a solid financial structure

In a sustainable low-interest rate environment, the management of Carmila's financial structure has

three objectives:

Reduce its financing cost

Extend debt maturity

Existing debt:

• 5 short-term swaps unwound
• €100 million of the term loan repaid
• Increased exposure to commercial paper
• Issuance of option-based or long hedges
• No buyback of existing debt

Future debt:

Optimise hedging structure

• Objective: extend and spread out maturities
• 12-yearprivate placement for €50 million (Dec 2019)
• Finance 2020 CAPEX through commercial paper and refinance acquisitions

Average cost of	Average remaining		Interest coverage	Net debt / EBITDA
debt in 2019	maturity	LTV ratio *	ratio **
2.1%	5.0 years	34.9%	5.0x	7.9x

(*) Net debt compared to the appraisal value including transfer taxes

34 (**) EBITDA / cost of debt over 12 months - Value 31 December 2019

2 0 1 9 A N N U A L R E S U L T S

This good momentum enables us

to keep the dividend stable at €1.50* while progressing toward our target pay-outratio

Dividend/Recurring Earnings ratio

(in value)

98%92%*

Target pay-out ratio of 90%

20182019

2019 Dividend

Paid in May 2020

€1.50*/share

35 (*)Subject to the approval by the next AGM on 14 May 2020

2 0 1 9 A N N U A L R E S U L T S

Develop future growth drivers

36

Invest in RETAIL alongside talented and dynamic entrepreneurs

		Retail
		partner
CARMILA
Retail development
20% - 40%		60% - 80%
Portfolio of 215 shopping		Very good professionals
centres in 3 countries	FV	2 to 5 high-performing
Financing works on new stores		existing stores
(repaid after 10 years)		Activity consistent with
Range of advisers (planning,		Carmila shopping centres
accounting expertise, etc)		Rapid development goal

Create a joint venture Acquire minority stakes Financing development

New store development, with priority given to Carmila shopping centres

= create rental income

Disposal of our stake after development in Carmila portfolio

= capital gains after 5 years

37	2 0 1 9 A N N U A L R E S U L T S

Invest in RETAIL alongside talented and dynamic entrepreneurs

A growth driver for 2019

A powerful future growth driver

4 current main

partners*

71 stores

Including 15 on third-party sites

€2,1million	Annualised rents from
leases signed at end-2019
€7,5 million	of committed investment
to date (c. €100K/store)
€6,5 million	of gains to date

Forecast at 4 years of the partnership**

160 stores

€6 million Annualised rents

€15 million of net commitments

€12 of Carmila million share of gains

5 year ambition

15 to 20 retail brands

in partnership when fully up and running

2 to 4 stakes

disposed each year

>€25 million Annualised rents

c.€20 million of net commitments

€50 of Carmila share

c. million of gains

(*) Barbe de Papa (2,5 years of development to date), Cigusto, indémodable, Centros Ideal (1 year of development to date)

38 (**) Forecast based on 4 years of development.

2 0 1 9 A N N U A L R E S U L T S

Invest in HEALTH to expand the offering of our shopping centres and benefit from a favourable development environment

Carmila health hub

Investment "philosophy" similar to that of Carmila Retail Development

Develop a full quality Health

offering in our shopping centres

Participate in the roll-out

of the offering as a financial partner

		Dental
Specialist		Specialist
professional 1		professional 2
Consolidate the
model and		Launch a
ensure success		dental offering
of the first		in 2020
openings

Ophthalmology	Lab	Primary care
Specialist	Specialist	Specialist
professional 3	professional 4	professional 5

Develop a primary care offering (under study): ophthalmology, labs, cosmetic medicine, etc

Enhance the value

of the partnership while broadening the offering at our centres (rents and attractiveness) and while benefiting from long-term value creation (gains on disposal)

39	2 0 1 9 A N N U A L R E S U L T S

Invest in HEALTH to expand the offering of our shopping centres and benefit from a favourable development environment

Carmila health hub

Transform our pharmacies into real anchors to strengthen our proximity positioning in the regions

Dentalley	Medical and paramedical
(dental practices)	practices

Stake

45%

Expansion of our pharmacies, transfer of pharmacies to our centres, takeover and replacement of existing pharmacists (in 2019: Laon, Annecy, St Jean de Luz, La Roche-sur-Yon).

• Investment*: €0.5 to €1.5 million/pharmacy
• 4-yeargain*: €0.5 to €1.5 million/pharmacy
• Objective: 5 to 10 pharmacies/year

1. Carmila share

40 (**) at 100%

Stake

37.5%

Choice of professional partners

Complete local health offering to our shopping centres

Financing works and the company's development

• Ambition: 50 units in 5 years
• Maximum commitment: €7 million *
• EBITDA after 6 years of €15 million **/50 units

Propose a complete Health offering to customers

Less profitable activities

2 0 1 9 A N N U A L R E S U L T S

Develop technical expertise to create value from the ownership of more than 200 sites in 3 countries

Mobile telephony antenna subsidiary

Create opportunities around a portfolio of 215 sites

and leverage the partnership with Carrefour

Short/medium term strongly-growing activity in France

Coverage of "blackspots" within 2 years: +20,000 antennas

5G antennas: +20,000 antennas

Bandwith improvement (additional antennas in areas already covered)

Contracts signed with the 4 operators in the sector

End-2019, 130 antenna leases signed*

Leases signed at end-2019*:

€1.5 million

5-year

ambition

€100 million

of value

41 (*) under precedent conditions

2 0 1 9 A N N U A L R E S U L T S

C O N C L U S I O N

Proximity drives future growth

42

A young and dynamic company A unique portfolio

Key and accessible urban locations

Well-establishedlocal leadership

Expert teams with a retail DNA

Strategic partnership with

Carrefour

A portfolio of 215 shopping centres well-established in their regions Sustainable cashflows

A resilient and growing core business

Scope for growth drivers

Invest in complementary retail activities

Leverage the portfolio's diversity

and the power of the Carrefour partnership

Retail			Environment
transformation	Multi-channel	Mixity	Solidarity

43	2 0 1 9 A N N U A L R E S U L T S

Leverage a powerful, sustainable and value-creating positioning: proximity

This is the primary value of our portfolio

• Unique coverage of regions
• Accessible sites
• Within leading and historic areas
• The power of visit frequency and familiarity of destination

This is an everyday advantage with the retail brands

• A partnership-based relationship
• Solutions meeting their expectations
• Local teams on the ground

PROXIMITY

This is at the heart

of our customers' needs and desires

• A strong local presence
• Targeted communication
• Friendly, welcoming promotions and events

Local is how we act everyday

• The strength of the community and credibility of "the one who lives here"
• A positioning as a local partner
• Ability to listen and empathise
• A strusting and welcoming environnement
• A key partnership with Carrefour

44	2 0 1 9 A N N U A L R E S U L T S

We are confident in our cashflow outlook for 2020

Visibility

on our

cashflows

Objective: Recurring earnings per share in 2020 showing growth over 12 months

Visibility

on our

pipeline

between +2% and +4%

compared to €1.61/share, ie 2019 recurring earnings per share excluding financial benefit from cash investments (€ 2M)

45	2 0 1 9 A N N U A L R E S U L T S

1 4 F e b r u a r y 2 0 2 0

Appendices

46

A portfolio valued at €6.421 billion at 31 December 2019, up €44 million over 6 months and €17 million over 12 months

	129 sites 72% *
GAV ITT	€4,615 million
2014 Values	€2,067 million 78%
(as a reminder)

215 assets

Annualised rents

€362 million

1. % of the market value including transfer taxes at 31 December 2019
   (**) Average capitalisation rate of the portfolio in 2019 external appraisals

47 (***) Average yield of the occupied units

78 sites 23% *	8 sites 5%*
€1,449 million	€357 million
€380 million 14%	€221 million 8%
GAV ITT	Gross leasable area
€6.421 billion	1.57 million m²
Average exit rate**	Average Net Initial Yield

5.90%5.64%

2 0 1 9 A N N U A L R E S U L T S

A solid and optimised financial structure

Average remaining	LTV ratio*	Interest coverage	Net debt /
maturity	34.9%	ratio**	EBITDA
5.0 years	5.0x	7.9x
		Debt amortisation table
			670	Gross debt ***:
1000			600			€2.4 billion
500					350

Key highlights for the year

Implementation of an EMTN programme

Issuance of a €50 million private placement maturing in 2031

Extension of hedges

One year extension of bank debt maturity and back-up credit line for €759 million

150	600	50
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

Available

€1,183 million

250 Club deal (RCF)

			Commercial	Floating
			paper		rate
			programme 6%	18%
Loans					Bonds
28%			66%	Swapped
						rate
						16%

1. Net debt compared to the appraisal value including transfer taxes (**) EBITDA / cost of debt over 12 months - Value 31 December 2019

Fixed rates

• swaps 82%

Fixed rate

66%

liquidity reserves at 31/12/19

759		Undrawn back-
	up credit lines

174 Cash and cash equivalents

31/12/19

48 (***) Gross loan outstandings excluding accrued interest, issuance costs and derivatives

2 0 1 9 A N N U A L R E S U L T S