Investor Presentation • Feb 18, 2021
Investor Presentation
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De conformidad con lo establecido en el artículo 227 del texto refundido de 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 la siguiente
Como continuación a la comunicación de información relevante publicada con fecha 17 de febrero de 2021 con número de registro 7136, Colonial remite documentación de soporte a la presentación a analistas e inversores correspondiente a los acuerdos alcanzados relativos a desinversiones realizadas, que se celebrará hoy jueves día 18 de febrero de 2021 a las 15:00 horas (CET) a través de un webcast.
Los datos de conexión a la conferencia se detallan a continuación:
Desde España: +34911140101 + Pin Code 39473752# Desde Francia: +33170710159+ Pin Code 39473752# Desde Holanda: +31207095119 + Pin Code 39473752# Desde el Reino Unido: +442071943759 + Pin Code 39473752# Desde USA: +1 6467224916 + Pin Code 39473752#
La presentación online será visible a través del siguiente link:
https://onlinexperiences.com/Launch/QReg/ShowUUID=2E0A41DA-3E99-4DEA-9D37-8C4F02A8981D
Adicionalmente, la presentación estará disponible en la página web de la Sociedad.
En Madrid, a 18 de febrero de 2021.
Project Alpha V Presentation
18th February 2021
By accepting this presentation and/or by attending this presentation, you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this disclaimer. 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 Company's publicly available information and, if applicable, the oral briefing provided by the Company. 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 could contain 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 may be 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. Any 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 that may be 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.
The distribution of this Presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about and observe any such restrictions.
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.
Strong pricing with double digit premium on GAV
CMD Disposal Guidance of €300m exceeded
Disposal of mature offices and Non-Core
Value Creation for Colonial Shareholders
More than €600m of disposal volume 5% of AUM
Confirmation of fundamental value double digit premium
Offloading noncore, secondary & mature product
Capital recycling with flight to quality
Strengthened balance sheet LTV post disposals below 35%
Marceau Project fully pre-let in Pandemic Year
Attractive rental terms, exceeding target
2 out of 3 Paris Projects pre-let
4 out of 10 Assets of Project Pipeline fully let
Attractive pricing: +13% premium on GAV1
Value Creation for Colonial Shareholders
Disposals of €413m of non-core assets & mature offices
✓ Wagram 112 –CBD Paris 1
Strong pricing with double digit premium on GAV
Offloading Non-Core & Mature product
More than 131,875 sq m disposed
131,875 sq m disposed, 35,417 sq m excluding logistics
5 assets sold
Balanced geographic mix
Combination of Non-Core with mature product
Spain
Disposals of more than €400m in Q4 20 exceeding CMD guidance
€413m of disposals of mature offices and Non-Core
Attractive pricing: +13% premium on GAV1
Value Creation for Colonial Shareholders
Les Gavarres
France
€413m of disposals of mature offices and Non-Core
Attractive pricing: +13% premium on GAV1
Value Creation for Colonial Shareholders
| Spain – Offloading Non-Core & Secondary |
France France – Crystalizing Value on stabilized Mature Assets |
||||
|---|---|---|---|---|---|
| Av. Bruselas 38 |
Non-Core Assets | 112 Wagram | 9 Percier | ||
| > Secondary Asset inn the north of Madrid |
> Final settlement of the logistics portfolio sale |
> Small asset, <6,000 sqm > Full repositioning completed |
> Small asset with sub-optimal floorplates |
||
| > Opportunistic trade through an off-market transaction |
> Disposal of non-core Asset (Retail) inherited from Axiare |
> Reversion achieved, full contract renegotiation in the last years |
> Value creation through progressive refurbishment floor by floor |
||
| > Fully stabilized asset after Colonial repositioning |
Cashing in Value in medium sized building with poor strategic fit in the Paris Portfolio of major business centers |
||||
| Value Creation through repositioning and attractive pricing | Value Creation through asset management and attractive pricing | ||||
| > Attractive terms for secondary assets |
> Premium of 16% on GAV |
||||
| > GAV1 Solid pricing vs last reported |
> Capital values above €20,000 sq m |
||||
| > Avenida Bruselas with 1.8x Value Creation vs Initial Project Cost |
> Capital value +30% vs 6/20 Paris |
portfolio average capital value |
|||
| -> 80% Capital Value Creation |
> Value creation of 1.7x since |
refurbishment / acquisition |
|||
| (1) GAV Pre-Covid |
19 as of December 2019 excluding Logistics final settlement | > Core assets with yield compression |
Cashing in Value in medium sized building with poor strategic fit in Paris portfolio of major Business Centers
Asset disposed for €120.5m with premium on GAV
Paris Investment market with yield compression on Core CBD
5,500 sq m
Mature Asset
High Liquidity
Process started in Q3, closing in Q4, final settlement in Q1 21
Initial phase with 40 investors
Final bid with 5 institutions
Asset sold to Aviva Investors
Asset disposed for €120.5m
Capital value of c.€22,500/ sqm,
+26% vs Average Capital Value of Paris portfolio
Price c.2x vs acquisition price in 2010
Capital Gain of c.100% on acquisition price
Cashing in Value in medium sized building with poor strategic fit in Paris portfolio of major Business Centers
Asset disposed for €143m with premium on GAV
High value creation trough renovation of the asset
6300 sq m
Mature Asset
High Liquidity
Small asset and small floor plants with suboptimal performance
Process started in Q3, closing in Q4, final settlement in Q1 21
Initial phase with 50 investors
Final bid with 8 institutions
Asset sold to Deka Immobilien
Asset disposed for €143m
Capital value of c.€24,000/sqm
c.+34% vs Average Capital Value of Paris portfolio
Disposal Price 1.8x on total cost (acquisition price + project capex)
Capital Gain of +80% on total cost
Asset located in a secondary area in the north of Madrid
Sub-market with structural double-digit vacancy
Disposal of asset after real estate repositioning
11,697 sq m
Mono tenant Asset
Secondary Location
Secondary Asset in the north of Madrid
Investor looking for a long-term contract
Quick execution during Q4
Private investor
Optimized price through an off-market transaction
Disposal Price 1.8x on total cost (acquisition price + project capex)
Capital gain of +80% on total cost
Non-core Asset (Retail) inherited from Axiare
C-location in Tarragona (Spain)
Contract renegotiated in 2H18
12,413 sq m
Mono tenant Asset
Warehouse in C location of Spain
Process re-started after COVID outbreak with few investors
Settlement in Q1 2021
Solid pricing for asset with complicated outlook
Other Spain – Logistics Portfolio final settlement
Process closed successfully with Prologis
€64m of final settlement signed in December 2020
Enhanced focus on Prime Offices
Agreement reached with Prologis in August 2019
Two phases of the transaction executed during 2019 and 2020
Final settlement of San Fernando project reached in Q4
Process closed successfully with Prologis
2020 Full Year Disposal Program delivered
More than €617m disposals in 2020 with premium on GAV
Disposals represent 5% of AUM
Offloading noncore, secondary & mature product
| €m | Sq m |
|
|---|---|---|
| Q2 Q3 Disposals & |
204 | 131 039 |
| - Q4 Alpha V |
413 | 127 173 |
| Full Year Disposals |
617 | 258.212 |
258,212 sq m disposed, 64,622 sq m excluding logistics
17 assets sold
Combination of Non-Core with mature product
+13% premium in offices on GAV2 Pre-Covid
Acceleration of Investor interest in 2H 2020
(2) GAV Pre-Covid 19 as of December 2019
2020 Full Year Disposal Program delivered
More than €617m disposals in 2020 with premium on GAV
Disposals represent 5% of AUM
Offloading noncore, secondary & mature product
Logistics Disposals Phase II
Tarragona
Non-Core Secondary Offices Mature Offices
Berlin / Numancia Plaza Europa
9 Av. Percier
Confirmation of fundamental value – double digit premium on GAV
Strong liquidity of Colonial assets in investment market
Investment market acceleration 2H 2020
Colonial's disposals with premium on GAV across its 3 markets
| Transaction - Average |
212 | 11.474 | |
|---|---|---|---|
| D | Príncipe de Vergara 108 |
50 | 7.000 |
| C | Velázquez 34 (incl. retail) |
120 | 15.926 |
| B | Fernando El Santo 20 |
42 | 11.058 |
| A | (incl. Retail) Axis |
100 | 25.000 |
| Price Cap . Value (2) (3) |
| 212 | 11.474 | Transaction - Average |
n.a. | n.a. |
|---|---|---|---|---|
| 50 | 7.000 | Berlin/Numancia D |
Confidential | n.a. |
| 120 | 15.926 | Almogavers C 177 |
50 | 5.882 |
| 42 | 11.058 | Sancho de 65 B |
56 | 6.747 |
| 100 | 25.000 | Ávila Sancho (Project) de A |
100 | 5.747 |
| Price (2) |
. Value (3) |
Price | Cap. Value |
|
| Cap | Ávila |
| Colonial Average (6/20 appraisal) | ||||
|---|---|---|---|---|
| Transaction - Average |
1.242 | 22.782 | ||
| E | ||||
| 7 Magdebourg |
73 | 28.077 | ||
| 7 Teheran D |
200 | 28.571 | ||
| 6/12 St Honoré (incl . retail) C |
290 | 53.704 | ||
| Rue Blanche 7 B |
75 | 20.183 | ||
| 9 Bergere A |
604 | 16.872 | ||
| (2) | (3) | (2) Price |
(3) Cap Value |
|
Capital recycling with flight to quality
Disposals of more than 600 €m in 12 months
Strengthened balance sheet LTV post disposals below 35%
Value Creation for Colonial Shareholders
Project capex
Reduce leverage & strengthen balance sheet
Net Debt Reduction – Proforma based on Q3 balance sheet
Use of proceeds LTV Reduction – Proforma based on Q3 balance sheet
Ongoing Flight to Quality
2020 Full Year Disposal Program delivered
Ongoing flight to quality through disciplined capital allocation
Disposals of €1.8bn of mature assets and or non-core product
Solid returns through Prime Factory and Capital Recycling
Alpha (Prime Factory asset transformation) has proved to be a significant driver in value creation
+€3.5 per share through project delivery since 2014
Significant Capital Value Creation since 2014, +150% (+6.7 €/sh of NAV)
Marceau Project fully pre-let in pandemic year
Attractive rental terms, exceeding target
Strong Pricing confirms resilience of Prime
Development program on track
Project delivery in 3Q 2021
2 out of 3 French projects are 100% pre-let
4 out of 10 projects are pre-let
Strong value creation through achievement of projects milestones
Campus Méndez Álvaro Biome
Sagasta 27 Plaza Europa 34
Attracting AAA clients with strong solvency through the Best Product & Best Location
Clients with high loyalty to Colonial assets
75% of our clients have been with us more than 5 years
(1) Topped Up GRI as of 12/19
(2) Loyalty of the main tenants maturity
Strong pricing with double digit premium on GAV
CMD Disposal Guidance of €300m exceeded
Disposal of mature offices and Non-Core
Value Creation for Colonial Shareholders
More than €600m of disposal volume 5% of AUM
Confirmation of fundamental value double digit premium
Offloading noncore, secondary & mature product
Capital recycling with flight to quality
Strengthened balance sheet LTV post disposals below 35%
Marceau Project fully pre-let in Pandemic Year
Attractive rental terms, exceeding target
2 out of 3 Paris Projects pre-let
4 out of 10 Assets of Project Pipeline fully let
Q&A
Don´t miss our next events
Feb 25: 2020 Results Presentation
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