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Inmobiliaria Colonial Socimi S.A.

Investor Presentation Nov 12, 2020

1843_rns_2020-11-12_a964c7fe-151c-4cf8-904c-c33b20dc5cd5.pdf

Investor Presentation

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De conformidad con lo establecido en el artículo 228 del texto refundido de la Ley del Mercado de Valores (la "Ley del Mercado de Valores") aprobado por el Real Decreto Legislativo 4/2015, de 23 de octubre, Inmobiliaria Colonial, SOCIMI, S.A. ("Colonial" o la "Sociedad") comunica el siguiente

OTRA INFORMACIÓN RELEVANTE

Como continuación a la comunicación de información relevante publicada con fecha 11 de noviembre de 2020 con número de registro 5665, Colonial remite documentación de soporte a la presentación a analistas e inversores relativa a los resultados correspondientes al tercer trimestre de 2020, que se celebrará hoy jueves día 12 de noviembre de 2020 a las 18:30 horas (CET) a través de un webcast.

Los datos de conexión a la conferencia se detallan a continuación:

Desde España: +34911140101 + Pin Code 55041233# Desde Francia: +33185654601 + Pin Code: 55041233# Desde Holanda: +31207095119 + Pin Code 55041233# Desde el Reino Unido: +442071943759 + Pin Code 55041233# Desde USA: +1 6467224916 + Pin Code 55041233#

La presentación online será visible a través del siguiente link:

https://onlinexperiences.com/Launch/QReg/ShowUUID=F883E1E1-27C1-4D6D-9AD1-6236D468C7B8

Adicionalmente, la presentación de resultados estará disponible en la página web de la Sociedad.

En Madrid, a 12 de noviembre de 2020.

Third Quarter Results 2020

November 2020

By attending this presentation and receiving this document, you are agreeing to be bound by the following limitations. Any failure to comply with these restrictions may constitute a violation of applicable securities laws and/or may result in civil, administrative or criminal liabilities.

This document is strictly confidential and is being furnished to you solely for your information. It may not be reproduced, or redistributed to any other person, and it may not be published, in whole or in part, for any purpose.

The information contained in this presentation ("Presentation") has been prepared by Inmobiliaria Colonial, SOCIMI S.A. (the "Company") and has not been independently verified and will not be updated. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein and nothing in this Presentation is, or shall be relied upon as, a promise or representation. None of the Company nor any of its employees, officers, directors, advisers, representatives, agents or affiliates shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this Presentation or its contents or otherwise arising in connection with this Presentation.

This Presentation is for information purposes only and is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by the Company and the Company's publicly available information. The information and opinions in this presentation are provided as at the date hereof and subject to change without notice. It is not the intention to provide, and you may not rely on these materials as providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects.

This Presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice and does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and for making your own independent assessment of the Company. You are solely responsible for seeking independent professional advice in relation to the Company. No responsibility or liability is accepted by any person for any of the information or for any action taken by you or any of your officers, employees, agents or associates on the basis of such information.

This Presentation contains financial information regarding the businesses and assets of the Company. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. The inclusion of such financial information in this Presentation or any related presentation should not be regarded as a representation or warranty by the Company, its affiliates, advisors or representatives or any other person as to the accuracy or completeness of such information's portrayal of the financial condition or results of operations by the Company and should not be relied upon when making an investment decision. . Certain financial and statistical information in this document has been subject to rounding off adjustments. Accordingly, the sum of certain data may not conform to the expressed total.

Certain statements in this Presentation are forward-looking. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These include, among other factors, changing economic, business or other market conditions, changing political conditions and the prospects for growth anticipated by the Company's management. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking statements contained in this Presentation and based upon past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The market and industry data and forecasts included in this Presentation were obtained from internal surveys, estimates, experts and studies, where appropriate as well as external market research, publicly available information and industry publications. The Company, it affiliates, directors, officers, advisors and employees have not independently verified the accuracy of any such market and industry data and forecasts and make no representations or warranties in relation thereto. Such data and forecasts are included herein for information purposes only. Accordingly, undue reliance should not be placed on any of the industry or market data contained in this Presentation.

NEITHER THIS DOCUMENT NOR ANY OF THE INFORMATION CONTAINED HEREIN CONSTITUTES AN OFFER OF PURCHASE, SALE OR EXCHANGE, NOR A REQUEST FOR AN OFFER OF PURCHASE, SALE OR EXCHANGE OF SECURITIES, OR ANY ADVICE OR RECOMMENDATION WITH RESPECT TO SUCH SECURITIES.

  • Highlights 01
  • Covid-19 Impacts 02_
  • Market Update 03
  • Operational performance 04
  • Financial performance 05
  • Non Financial Highlights ESG 06
  • Strong Resilience through Core CBD 07
  • Conclusion 08

PRESENTING MANAGEMENT TEAM

Pere Viñolas Chief Executive Officer

Carmina Ganyet Corporate Managing Director

Carlos Krohmer Chief Corporate Development Officer

Solid results with resilient Q3

Highlights Solid results with resilient Q3 01

STRONG FINANCIAL RESULTS

  • Gross Rental Income of €260m, +0.4% like-for-like

  • Net Rental Income +3% like-for-like

  • Net Rental Income Offices. +4% like for like

  • Recurring earnings of €112m, +8% YoY

  • Recurring EPS of €22.10cts. per share, +8% YoY

SOLID FUNDAMENTALS - RESILIENT PRIME POSITIONING

  • Office Collection Rates of 98% (100% in Paris)

  • Occupancy of 96% (97% in Madrid)

  • Letting activity ongoing with good terms

  • Positive Release Spreads and Rental Growth

  • Project Pipeline with 34% pre-lets

CAPITAL ALLOCATION - FLIGHT TO QUALITY

  • €2bn of new debt issuances (€1bn bonds) & Liability Management

  • Disposal of > €240m Non-Core assets in Q2 & Q3

  • Disposal prices confirming June 2020 appraisals

  • Estimate of further disposals of around €300m

Solid fundamentals driving profitability

  • Recurring EPS growth of +8%

  • NRI like for Like growth of +3%

  • Offices NRI like for like of +4%

09/20 YoY Var Unparalleled Prime Positioning
€112m +8%
22.10 €Cts/share +8% CBD
76%4
€260m +0.4%
€254m +2%
+5%
+7%
(0.3%)
09/20 YoY Var
€245m +3%
€241m +4%
+12%
+10%
(0.6%)
09/20 YoY Var

Campus Méndez Álvaro Velázquez Padilla Miguel Ángel, 23

  • (1) EPRA like-for-like variance based on EPRA BPR methodology
  • (2) Office portfolio in operation with Leed & Breeam certificates
  • (3) Office portfolio + Prime retail of Galeries Champs Elysées and DAU Pedralbes
  • (4) Figures adjusted by logistic and Q3 sales

Highlights 01

Solid fundamentals driving operational performance

  • Healthy Vacancy levels with high collection rate

  • Double digit Release Spread & Ongoing Rental Growth

  • Strong CBD positioning with high Paris exposure

Solid Fundamentals 09/20
EPRA Vacancy 4%
Office Collection Rate Q3 20 98%
Total Collection Rate Q3 20 96%
Volume of sq
m signed
68,847
# transactions signed 49

Capturing Rental Price Increases

Double-digit release Spread1 +25%
Barcelona +51%
Madrid +20%
Paris +14%
Sustained rental growth2 +5%
Barcelona +7%
Madrid (1.6%)
Paris +10%

Louvre-Saint-Honoré Marceau Biome

Campus Méndez Álvaro Velázquez Padilla Miguel Ángel, 23

(1) Rental prices signed vs previous rents

(2) Rental prices signed vs ERV 12/19

(3) Office portfolio in operation with Leed & Breeam certificates

(4) Figures adjusted by logistic and Q3 sales

02 Covid-19 Impacts

Proactive management in key areas of the company

MARCH APRIL MAY JUNE JULY SEPTEMBER OCT / NOV
Implementation of
covid-19 protocol
within our buildings
Increased liquidity
through the
signature of 200€m
sustainable loan
Rating agencies
S&P and Moody's
confirm credit rating,
BBB+ and Baa2
Pre-letting of
Marceau Goldman
Sachs
Solid Q2 20
Results
Sale of 2 noncore
assets in Barcelona
€500m Bond
Issuance Colonial
Launch of €300m
Liability
Management at
Colonial
Disposal of 2 non
core assets with
>20% premium
More than 3,000
sqm signed, +10%
vs ERV +50%
release spread
500€m of bond
issuance, increasing
liquidity above
€2,500m
Agreements fully
reached with clients
in Spain
500€m of bond
issuance SFL
€161m Liability
Management at SFL
level
Signing of a new
"Credit facility"
financing line of
€1000m
Postponement
of capex program
€60M
(Mendez Alvaro)
Release of Q1
results, with
vacancy rate at 2%
Stable dividend of
20 €Cts
/share
approved by AGM
Logistics Disposal
Settlement of Call
Option signed in
2019

COVID 19 – Collection rates Q3 02 Covid-19 Impacts

  • 100% Paris Offices

  • 98% Group Offices

  • 96% Group All Products

COLLECTION RATES DURING COVID-19

COVID 19 – Agreements & discounts 02 Covid-19 Impacts

  • Agreements almost finalized Only 1 file in France left

  • Discounts in very limited cases: 3% impact YTD on annual GRI

  • Early for visibility of impacts of second wave

Scarcity in Prime Product

Market Macroeconomic update 03

  • The International Monetary Fund ("IMF") updated its GDP projections per country on October 16, 2020

  • Forecasts for most countries (including France) have improved for 2020, but with slightly weaker recovery in 2021

  • Spain remains with sharp contraction in 2020, but with improved recovery next year

GLOBAL GDP IMF ESTIMATES (June vs October estimates)

Market 03

Rental Markets - Scarcity of High Quality Product

  • Grade A stock in CBD very low in every city

  • Grade A availability in Barcelona and Paris below 1%

  • Grade A availability in Barcelona at 8,000 sqm and in Paris and Madrid at 60,00 sqm each

Market Rental Markets 03

  • Release of lockdowns in Q3 with immediate impact on economic activity

  • Q3 CBD take-up with more than 60% increase Quarter on Quarter in Spain

  • Paris CBD with close to 300.000 sqm of quarterly take-up

Market 03

Investment Markets – prime remains resilient

Source: JLL, CBRE & Bloomberg

Unparalleled exposure to CBD

Letting activity remains solid in 2020YTD

(2) Maturity until expiry of the contract

(3) Financial vacancy calculated according to EPRA methodology – Office Portfolio

(4) Rental prices signed vs previous rents

Letting activity remains solid in Covid Period (Q2 20 & Q3 20)

  • More than 26,000 sqm signed in Q3 2020

  • Covid19 (Q2 & Q3) quarters with higher letting activity higher than Q1 2020 (PreCovid)

  • Solid rental levels with healthy maturities

SQM SIGNED 2020 YTD

Q1 2020 –
Pre Covid
Madrid &
Barcelona
12,398
Paris
1,141
Group
13,539
Q2 2020 –
Post Covid
Q3 2020 –
Post Covid
14,186
24,574
14,523
2,026
28,709
26,600

KPIs COVID19 – 2Q & 3Q YTD

LETTING COVID19 – 2Q & 3Q YTD

Rental Price levels remain solid in 2Q & 3Q 20

GROWTH ON SIGNED RENTS1

Castellana 163

Lopez de Hoyos

Torre BCN

Washington Plaza

Torre BCN

RELEASE SPREAD2

Almagro 9

Martínez Villergas

Via Augusta Diagonal 609-615

Lopez de Hoyos

Travesera 11

Castellana 52

(1) Signed rents vs 12/19 ERV (new lettings & renewals) (2) Signed rents vs previous contracts (renewals)

Operational performance Rental Price levels remain solid 04

  • Price levels remain solid in every segment

  • Releases Spreads double digit

  • Signed Prices vs ERVs remain with positive momentum

SOLID INCREASE IN RENTAL PRICES

RELEASE SPREAD1 GROWTH ON SIGNED RENTS

(1) Signed rents vs previous contracts (renewals)

(2) Signed rents vs 12/18 ERV (new lettings & renewals)

(3) Signed rents vs 12/19 ERV (new lettings & renewals)

Vacancy at very healthy levels in every segment

  • Group & Office portfolio vacancy at a healthy 4%

  • Significant quarter on quarter improvement in Madrid with a vacancy below 3%

  • Paris at 2.5% excluding 103 Grenelle entry into operation

EPRA VACANCY

Vacancy at very healthy levels in every segment

  • Strong decrease of Madrid vacancy, standing below 3%

  • Current available space located in secondary areas

  • Group Vacancy stable between 3-4%

EPRA VACANCY

Solid financials underpinned by high quality assets

Financial performance Strong top line growth 05

  • Gross Rental Income (0.9%) and +0.4% like for like

  • Office portfolio GRI +4% and +2% like for like

  • Madrid and Barcelona with outstanding GRI growth

GROSS RENTAL INCOME - €M

2) Office Portfolio including Retail Prime CBD of Galeries des Champs Elysées and Pedralbes Cente

3) Logistic Portfolio, Axiare Retail Secondary and Hotel Indigo in Paris

4) Acquisitions, projects & refurbishments & indemnities due to client rotation

Like-for-like rental growth price driven

  • Like-for-like growth largely driven by rental price increases

  • Barcelona fully price driven

  • Madrid growth driven by a combination of price and volume

GROSS RENTAL INCOME - €M

1 Like-for-like variance calculation based on EPRA best practice methodology 2 Office portfolio + Prime retail of Galeries Champs Elysées and Pedralbes Centre

STRONG EPRA LIKE-FOR-LIKE GROWTH

27

NRI offices at +4% like for like

  • Net Rental Income, +3% like for like

  • Net Rental Income Offices +4% like for like

  • Barcelona and Madrid with double digit NRI like for like growth

LIKE-FOR-LIKE VARIANCE1 – NRI

1 Like-for-like variance calculation based on EPRA best practice methodology 2 Office portfolio + Prime retail of Galeries Champs Elysées and Dau Pedralbes

Logistics disposal – Execution of Call Option confirmed

  • Settlement of Call Option signed in 2019

  • €100m cash proceeds in July

  • €64m cash proceeds in Q4 2020

LOGISTICS PORTFOLIO DISPOSAL LOGISTICS PORTFOLIO DISPOSAL – SECOND PHASE

In August 2019 Colonial signed the disposal of its logistics portfolio which included a call option for part of them

In July 2020, the call option has been executed:

  • It includes 7 assets with 159,000 sqm in the first and second ring of Madrid

  • The assets include more than 150 decks, cross docking warehouses and more than 1,000 parking units

  • The 7 assets have Bream or Lead energy efficiency certificates

  • €100m cash proceeds in July 2020

  • €64m cash proceeds in Q4 2020

Disposal of secondary assets in Barcelona 05 Financial performance

  • Disposal of 2 secondary assets in Barcelona

  • 2 assets amounting a total of 18,150 sqm with environmental certifications

  • Real Estate value creation 1.7x on acquisition price

Colonial continuing with its industrial strategy

Colonial's industrial asset management strategy:

Plaza Europa 40 42:

  • Opportunistic investment in December 2014

  • Mono tenant asset with high reversion potential

  • Contract renewed during 2019 with high double digit reversion

Berlin/ Numancia:

  • Located in a residential area not attracting CBD clients

  • Asset repositioning with selective capex

  • Rental contracts updated during the last 3 years capturing the reversion of the rents for the sub-market

Flight to quality with selective disposals

Profitable growth with enhanced quality

  • High recurring EPS growth, +8% YoY

  • NRI growth the main profit driver

  • Non-Core Disposals enhancing the quality of returns

Profitable growth with enhanced quality

  • Recurring Earnings of +8% YoY

  • Recurring EBITDA, +2%

  • Stable dividend based on solid cash flow generation

PROFIT & LOSS ACCOUNT

+0.4% LFL
+
+
Recurring Earnings -
€m
112 104 +8%
Nosh (mm) 508 508 -
EPS recurring -
Cts€/share
22.10 20.49 +8%

STRONG DPS GROWTH

DIVIDEND PER SHARE

Ongoing access to debt markets and liquidity

  • Confirmed BBB+ Rating by S&P facilitating good access to debt markees

  • €1.000m successful bond issuances in France and Spain

  • €1,000m new revolving credit facility

Bond issuance in France Bond issuance in Spain New Credit Facility
Successful issuance in bond market Successful issuance in bond market Improvement of the financial flexibility
€500m €500m New Sustainable €1,000m credit facility
1.5% fixed coupon 1.35% fixed coupon Structured in 2 tranches:
7 years maturity 8 years maturity €500m due in 2025
4x oversubscription Strong support, 3x oversubscription €500m with flexible maturity until 2027

✓ 60% allocation in France

  • ✓ Club Deal format including national and international institutions
  • ✓ Replacement of previous €875m credit facility maturing in 2022 &2023
  • ✓ Interest linked to ESG benchmark

Financial performance A solid capital structure 05

  • Long-term financing profile with extended debt maturities

  • €2.4Bn of liquidity covering debt maturities until 2024

  • A solid financial structure with competitive financing costs

31/12/2019 30/09/2020
Net
Debt
€4,609m €4,576m
LTV 36.1% 36.5%
Ebitda1
Net
Debt
/
13.1x
Drawn
Facilities
€125m
Unutilized
Facilities
€1,915m
Total
Facilities
€2,040m
Cash €447m
Liquidity €2,362m
Debt
Maturity
Group
5.2 years
Non-Mortgage
debt
95%
Cost
of
Debt
Group
1.71%

Net Debt adjusted for the projects under development multiplied by LTV (as these projects are not yet income contributing but already (partially) financed

Ebitda based on latest reported EPRA Topped-up Net annualized rent

Strong Commitment on ESG & Decarbonization

Non Financial Highlights - ESG Strong Commitment to ESG & Decarbonization 06

COLONIAL ALIGNED WITH PARIS AGREEMENT

  • Objective of carbon neutral portfolio in 2050

  • Objective of a 75% carbon reduction until 20301

CARBON EMISSIONS – PORTFOLIO LIKE FOR LIKE

2015 – 2019 (KgCo2e/sqm)

2018 –
2019
(KgCo2e/sqm)

SIGNIFICANT REDUCTION OF THE CARBON FOOTPRINT

SCOPE 1, 2 & 3 – ABSOLUTE FIGURES- (tCO2e)

SCOPE 1 & 2 – FIGURES LIKE FOR LIKE

Portfolio like for like

Office portfolio in operation

ESG strategy enhancing Green loans 06 Non Financial Highlights - ESG

GREEN FINANCING

New sustainable credit line amounting €1bn

The sustainable nature of the loan acknowledges the positive impact

of Colonial's ESG strategy

  • Substitutes previous loans and extends maturities to 2025 and 2027

  • The new line of credit is sustainable as its margin is linked to the rating obtained by the GRESB agency

€1.2bn in sustainable credit lines

This loan is in addition to the sustainable loan that Colonial

formalized in 2019 for €151m

Practically all of Colonial's banking financing is classified with a

sustainable rating

Long term sustainable cash flow through prime positioning

07 Strong resilience through Core CBD

RESILIENCE THROUGH PRIME POSITIONING

A super Core CBD Portfolio

AAA Clients with strong solvency

Flagship Projects in the CBD

Excellence on ESG & Decarbonization

Ongoing Flight to quality

Strong resilience through Core CBD A A Super Core CBD Portfolio 07 1

  • Colonial as largest office owner in the City Centre of Madrid, Barcelona and Paris

  • Strong market share in CBD

  • Prime positioning enhances resilience

  • CBD portfolio focused on large assets with efficient floor plates

  • Diversified multitenant exposure

  • CBD exposure with maximum energy efficiency standards

PORTFOLIO STRATEGY

EFFICIENT LARGE-SCALE PORTFOLIO

Defensive Prime Positioning 07

A A Super Core CBD Portfolio with solid valuationn levels 1

  • Prime Yields at very attractive spreads compared to reference rates

  • Colonial portfolio at prudent valuation levels

  • Prime product with defensive metrics

(1) Market consultants in Spain report gross yields and in France they report net yields (2) Portfolio in operation (3) According to JLL

Defensive Prime Positioning A A Super Core CBD Portfolio with solid valuationn levels 07 1

  • Investor interest for Core CBD assets remains strong

  • No supply of CBD product in the investment market

  • Colonial's assets with prudent appraisal values

Madrid City Center (inside M30) Barcelona City Center Paris CBD

Transaction
- Average
212 11.474
D Príncipe
de
Vergara
108
50 7.000
C Velázquez
34
(incl.
retail)
120 15.926
B Santo
Fernando
El
20
42 11.058
A (incl.
Retail)
Axis
100 25.000
Price
(2)
Cap
. Value
(3)
Colonial Average (6/20 appraisal) 6,671 Colonial Average (6/20 appraisal) 5,545
Transaction
- Average
212 11.474 Transaction - Average n.a. n.a.
Príncipe
de
Vergara
108
50 7.000 Berlin/Numancia
D
Confidential n.a.
Velázquez
(incl.
retail)
34
120 15.926 177 Almogavers
C
50 5.882
Fernando
El
Santo
20
42 11.058 Sancho de Ávila 65
B
56 6.747
Axis
(incl.
Retail)
100 25.000 Sancho de Ávila (Project)
A
100 5.747
Price
(2)
Cap
. Value
(3)
Price Cap. Value

Latest investment transactions inside M30 Latest investment transactions in city center Latest investment transactions in Paris CBD

53.704
28.571
28.077
22.782
20.183
16.872
Cap
Value

Strong resilience through Core CBD AAA Clients with strong solvency 07 2

  • Strong solvent tenant base with rated and listed companies along with other multinationals

  • Portfolio attracting international clients

  • Defensive client sector diversification

  • Reversion as solid cash flow "buffer"

  • Contract Portfolio under-rented

  • Ongoing delivery of high release spreads YTD

07 Strong resilience through Core CBD 3 A defensive project pipeline

  • 74% of project pipeline concentrated in 4 big projects1

  • Adequate progress of pre-lettings

  • Super core locations in Paris and Madrid

Development Pipeline – "Big 4"

74% of project pipeline concentrated in 4 big projects1

Marceau Louvre-Saint-Honoré

Biome Urban Campus Méndez Álvaro

3 big projects located in Paris and 1 in Madrid

  • > Marceau: 86% of Pre-Letting with GS
  • > Louvre: 100% of Pre-Letting with Foundation Cartier
  • > Biome: Leasing plan to begin in 2Q21
  • > Mendez Álvaro: Capex to begin beyond 2022

07 Strong resilience through Core CBD A defensive project pipeline - Resilient project attracting Top tenants 3

  • Ongoing pre-letting momentum for CBD assets

  • Significant Pre-let level with AAA tenants

  • Top Product in unique locations

PRIME ASSET IN PRIME POSITION

  • Unique location, at 150 meter from Place de l'Étoile.

  • Six-storey property features an interior courtyard and terraces offering outstanding views of the Arc de Triomphe.

Best environmental standards with highest technical performances.

RESILIENT PRODUCT ATTRACTING TOP TENANTS

Strong Letting Momentum with Top Tenants

  • Q2-20: More than 6,000 pre-let with Goldman Sachs for its Paris HQ

  • 12 years lease with 9 years with mandatory compliance
  • Remarkable transaction with very satisfactory terms
  • Q3-20: Additional 1,200 sqm signed on the groundfloor

  • Just one floor left to get 100% pre-let

Pre-let Status – %

07 Strong resilience through Core CBD A defensive project pipeline 3

  • Significant Pre-let level with AAA tenants (34% of total pipeline)

  • Yield on cost confirmed and enhanced

  • Tactical management of calendar

GRI – Path to reversion
87%
Pre-let
100%
Pre-let
55
54
57
436
449
86%
Pre-let
29
28
382
381
392
353
364
Group GRI
Group
GRI
Secured Proforma I Rest of Full project
100%
Pre-let
12/19
6/201
project
Pipeline
pipeline reversion
1 Topped-up GRI as of 6/20 excluding logistis & Castellana 163

Yield On Cost – Project Pipeline

  • ESG at the Core of Colonial's Strategy

  • Strong Commitment to ESG & Decarbonization

  • More than €1.2bn of green financing

A STRONG STARTING POINT

1 Aligned with Paris Agreement

  • 2050 Carbon Neutral

  • (70%) Decrease in carbon emission since 20151

2 Decarbonisation laboratory

  • 1st wood office building in Spain

  • Leader in Energy Efficiency standards 3
  • 93% of portfolio Leead/ Breeam certificates

  • 4 €1.2bn of Green financing in 2020
  • High scorings in ESG benchmarks with positive momentum 5

2020 ONWARDS POSITIVE MOMENTUM EXPECTED

4 th year EPRA sBPR Gold Award in a row

Accelerating momentum on 2020 scorings expected

Strong resilience through Core CBD 07

Flight to quality through active asset management 5

  • Ongoing flight to quality through disciplined capital allocation

  • Disposal of more than €240m of non-core assest in Q2 & Q3

  • Further asset rotation ongoing

INVESTMENTS & DIPOSALS SINCE 2015 - €m

STRONG FINANCIAL RESULTS

  • Gross Rental Income of €260m, +0.4% like-for-like

  • Net Rental Income +3% like-for-like

  • Net Rental Income Offices. +4% like for like

  • Recurring earnings of €112m, +8% YoY

  • Recurring EPS of €22.10cts. per share, +8% YoY

SOLID FUNDAMENTALS - RESILIENT PRIME POSITIONING

  • Office Collection Rates of 98% (100% in Paris)

  • Occupancy of 96% (97% in Madrid)

  • Letting activity ongoing with good terms

  • Positive Release Spreads and Rental Growth

  • Project Pipeline with 34% pre-lets

CAPITAL ALLOCATION - FLIGHT TO QUALITY

  • €2bn of new debt issuances (€1bn bonds) & Liability Management

  • Disposal of > €240m Non-Core assets in Q2 & Q3

  • Disposal prices confirming June 2020 appraisals

  • Estimate of further disposals of around €300m

"SAVE THE DATE"

Don´t miss our next events

Dec 9: Capital Markets Day

Collected 92% ANNUALIZED
P/L IMPACT OF
Under Negotiation 1% DISCOUNTS
Deferrals 2%
Discounts 5% 3%
on
GRI

COVID 19 – Agreements & deferrals APPENDICES

  • Agreements almost finalized Spain with agreements on all files

  • Deferrals in exchange of longer-term maturities

  • Secured future GRI of €40m YTD through longer maturities

56

APPENDICES MSCI European Property Investment Award

  • Colonial awarded for the 4th year in a row by MSCI as best performing portfolio in Spain

  • Colonial outperformed the Benchmark in 2019 and over last 3 and 5 years

  • Spanish index benchmark made of 51 portfolios and 490 assets worth €19Bn

MSCI European Property Investment Award – Best Performer Spanish market 2019

Colonial has been awarded as Best Performing

specialist portfolio in the Spanish market in 2019

Colonial outperformed the Benchmark in 2019

and over last 3 and 5 years

Spanish index benchmark made of 51 portfolios and

490 assets worth €19Bn

2020

2019

APPENDICES

  • 3Q 2020 starting with high activity across all markets, specially in Paris

  • High volume transacted not only in CBD

7 rue Blanche
(3Q 2020)
CBD Prime €75m 3,716 sqm <2.50% Yield
6/12 Faubourg Saint Honoré
(3Q 2020)
CBD Prime €290m 5,400 sqm 2.90% Yield
Cityights
Complex
(3Q 2020)
Boulogne
Billancourt
€500m 48,500 sqm €10,300/sqm
S
RI
A
P
Shift building
(3Q 2020)
Issy les
Moulineaux
€600m 43,000 sqm 3.50% Yield
Schroder REIT
(3Q 2020)
Boulogne
Billancourt
€104m n.a.
sqm
n.a
7 Teheran
(3Q 2020)
CBD Prime €200m 7,000 sqm 2.90% Yield
7 Magdebourg
(3Q 2020)
CBD €73m 2,600 sqm 2.75% Yield
Source: public information, press and consultants

APPENDICES

Office investment markets across Europe are starting to gain pace.

  • 3Q 2020 starting with high activity across all markets, specially in Paris

  • High volume transacted not only in CBD

Alcala 544/546 -
Project
(3Q 2020)
Madrid Secondary n.a. 30,000 sqm Acquired by
Amundi
D
RI
D
A
M
Velázquez 34
(incl. retail areas)
(3Q 2020)
CBD Prime €120m 7,535 sqm €15,928/sqm
A
N
O
L
E
C
R
A
B
Manoteras
-
Project
(3Q 2020)
Madrid Secondary €40m 12,000 sqm €3,00/sqm
177 Almogavers
(3Q 2020)
22@ €50m 8,500 sqm €5,880/sqm
Berlin/Numancia
(3Q 2020)
Barcelona-BD confidential 12,800 sqm 1.7x Value
creation
Plaza Europa 40
(3Q 2020)
Plaza Europa confidential 4,800 sqm 1.7x Value
creation
Cristobal de Moura
(3Q 2020)
22@ na 30,770 sqm Hines
leading the
Project

APPENDICES

Flight to quality through active asset management

  • Solid intrinsic growth profile of CBD portfolio

  • Colonial well-positioned to capture reversion

  • Significant future value creation through CBD Project pipeline

1 Topped-up passing GRI

2 Logistics portfolio, Castellan 163, Berlin Numancia & Plaza Europa sell

3 Renovation program & GLI under repositioning

4 Breakdown based on GAV 6/20

APPENDICES A solid capital structure

  • An unparalleled high-quality collateral diversified in three cities

  • A solid financial structure with competitive financing costs

  • A strong credit profile

FIRST CLASS COLATERAL

More than €12bn of high quality assets

    1. Strong CBD exposure with prime product
    1. Highest sustainability standards
    1. Adequate diversification

Strong credit profile with solid investment grade rating

Rating Standard & Poor's BBB+ Stable Outlook

Rating Moody's

Baa2 Stable Outlook

Capital Structure 31/12/2019 30/09/2020
Net Debt €4,609m €4,576m
Group LTV 36.1% 36.6%
Liquidity €2,082m €2,362m
Maturity Spain
Maturity Group
5.6 years
4.9 years
4.8 years
4.7 years
Cost of Debt Group 1.63% 1.71%

A SOLID FINANCIAL STRUCTURE

APPENDICES Creation of Hybrid products – Fix, Flexible & Additional Services

  • Delivery of two new hybrid office buildings within Colonial's portfolio during 1H

  • Enhancement of user experience through the combination of flexible product and new contents

  • Prime locations and customer centric contents allows for talent attraction

NEW CENTERS IN Q120

Castellana 163 - Madrid

  • Prime location in the CBD of Madrid

  • 3,600 sqm of flexible space within a Colonial building

  • New Hybrid product: combination of traditional and flexible offices in

the financial area of Madrid

Torre Marenostrum - Barcelona

  • Prime location in the 22@ of Barcelona

  • 3,850 sqm of flexible space in front of the sea

  • New Hybrid product in the Barceloneta, a highly sought after

neighbourhood for international companies and digital start-ups

traditional flex

APPENDICES 2021 Maturities management on track

2021 MATURITIES

1,9 21 29 Group Signed & No Executed BO Remaining risks 2020 Risk Paris Madrid & Barcelona 15.9% Annualised GRI % on annualized Group GRI 2021 Impact 3.2% Selected Main Files Louvre-Saint-Honoré Poeta Joan Maragall, 53 EGEO Sagasta, 31-33 Paseo Recoletos, 37-41 Sant Cugat Édouard VII Santa Engracia Av. Diagonal, 609-615 Campo de las Naciones CBD CBD CBD CBD Periphery CBD CBD CBD Multitenant Monotenant Multitenant Monotenant Multitenant Multitenant Multitenant Multitenant Multitenant

© Colonial

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