Slides
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19 FEBRUARY 2025 2024 Annual Results patrimoine-commerce.com The leading property company specialising in low-cost retail parks
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2024 key figures KEY FIGURES 30.1 euros of RNAV3 559,000 sqm of surface area 43.1% LTV4 52.6 million euros of rents1 904 million euros of assets2 7.6% capitalisation rate5 1 Gross rental income. 2 Excluding transfer fees (including group share of Cherbourg and Studio Prod and assets held for sale). 3 Triple net / share (excluding treasury shares). 4 Adjusted for hedging instruments. 5 Annualised rental income + ERV of vacant spaces / value excluding transfer. 2
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Market dynamics
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Resilience of retail parks in a property investment market playing wait and see ONGOING DECLINE IN INVESTMENTS IN SHOPS RESILIENCE OF RETAIL PARKS Sources: CBRE, BNPPRE, Up Invest and Immostat Commercial investments in France, in billions of € Retail parks Shopping malls and ground floor shops 17 18 19 20 21 22 23 24 4.1 4.6 7.0 4.6 3.2 5.6 3.3 2.5 Shops -35% vs the average for the past 5 years vs Commercial property, all segments combined1 -54% MARKET DYNAMICS €750mm Total retail park transactions in 2024 Increase in midsized transactions Concentration around a limited number of transactions (particularly for shops in premium locations on the ground floors of Parisian buildings) 20%% Stability of retail parks out of total commercial investments vs 1 Shops, offices, industry and logistics. 4
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Mature commercial property market generating a premium on existing assets MARKET DYNAMICSRETAIL SPACE AUTHORISED IN FRANCE WITH FULL PERMITS SINCE 1994 (IN SQM) PREMIUM ON EXISTING ASSETS AS AN OPPORTUNITY FOR GROWTH Increasing scarcity of available land as a result of France’s Zero Net Artificialisation (ZAN) Act of 2023 Reconfiguration / extension of assets Opportunities for portfolio consolidations / acquisitions Transformation of car parks 3,270,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2005 2021 2022 2023 2024 2007 2008 2006 1994 1995 1996 2020 Sapin Act* 1993 SRU Act* 2000 Economic Modernisation Act 2008 Growth Act 2015 ELAN Act* 2018 Resilience & Climate Act 2021 ZAN Act* 2023 2,000,000 Planned projects for next 5 years 2014 ALUR Act* ACTPE Act* ÷3 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 Sources: CNAC, Knight Frank and CW * Sapin = Transparency of economic life and public procedures, SRU = Solidarity and Urban Renewal, ALUR = Housing Access and Updated Town Planning, ACTPE = Community Aid for Microbusinesses, ELAN = Evolution of Housing, Development and Digital, ZAN = Zero Net Artificialisation 5
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Source: Ipsos/Bonial, October 2024 Retail park chains: Retailers that appeal to consumers MARKET DYNAMICS TOP 10 MOST APPEALING RETAILERS (PRICES, QUALITY-PRICE RATIO, SPECIAL OFFERS, ACCESS & CSR) 1 62 73 84 95 10 6 100% of these chains are located in retail parks.
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MARKET DYNAMICS Sources: LSA, Havas, NielsenIQ and company data 2019 2024 1,450 2020 2022 2024 30% 38% 47% 2,300 +10% per year Change in the number of stores in France operated by 6 discount chains Example of Action Appeal of discount chains, a segment well-suited to retail parks 75% Proportion of French people who visited a discount chain during the year 78% Proportion of French people who expect to buy more discount products in future Penetration rate amongst French households, i.e. the proportion that made a purchase at Action during the year, as a % 7
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The retail park: A resilient business model MARKET DYNAMICS Sources: BNPPRE and Codata Digest France 2025 HISTORICALLY HIGHER PRIME RATES OF RETURN THAN ON OTHER COMMERCIAL ASSETS LOWER VACANCY RATES THAN OTHER RETAIL PROPERTIES 6.25% 5.25% 4.50% High streets Shopping centres Retail parks 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 2015 2017 2019 2021 2023 2016 2018 2020 2022 2024 Chains • Attractive rents (€110/sqm) and low charges (€10/sqm) • Strong merchantability (footfall, parking and accessibility) • Model aligned with new consumption patterns Investors • Resilient revenue (high occupancy rates and low overdue rates), ownership of operating permits and low CapEx • Attractive returns and resilient retail tenants (such as discount stores) • Opportunities for growth (including the potential for consolidation in a market that is still largely fragmented) 31/12/2023 31/12/2024 Ground floors of buildings Shopping centres Retail parks Overall vacancy 10.6%9.8% 10.8% 6.6% 7.2% 14.9% 16.1% 8
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Patrimoine & Commerce highlights
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Crédit Agricole Centre France invests in P&C HIGHLIGHTS Cash capital increase restricted to Crédit Agricole Centre France, a regional section of the Crédit Agricole Group No. 1 bank in its territory, which covers five departments (Allier, Cantal, Corrèze, Creuse and Puy-de-Dôme) €20mm Invested capital 5.4 %% CACF’s stake in P&C €23 Subscription price per share +16 %% Share premium vs stock market price as at 01/08/2024, CACF’s subscription date SUMMARY OF THE INVESTMENT Clermont-Ferrand 10 Continuing P&C’s development whilst maintaining a solid financial structure.
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Acquisition of a portfolio of 13 assets HIGHLIGHTS Acquisition of a portfolio of 13 assets, divided between 25 retail park units, through a share deal in December 2024. 27,000 sqmsqm Total surface area of the portfolio €35 mm Total value of the portfolio 7.5 %% Rate of return 100 %% Occupancy rate €109/sqm/sqm Average rent/sqm KEY FIGURES Eysines, France Laon, France Wittenheim, France Saint-Brice-sous-Forêt, France 11
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Acquisition of a portfolio of 13 assets (cont’d) HIGHLIGHTS High-quality rental portfolio Geographically complementary to the P&C portfolio Attractive returns • 80+% space occupied by national and international chains • 40+% of portfolio rental income from the discount segment Examples of retail tenants • Reinforcement of P&C’s presence in Wittenheim and Laon, France • Diversification of the P&C portfolio in attractive shopping areas, particularly in Barentin and Plaisir, France • Attractive rate of return on asset rentals (7.5%) • Assumption of existing financing under conditions more competitive than current market conditions (for example, with an average interest rate of 2.1% on the portfolio and an LTV ratio of 54%) 12 Continued growth in property assets, with the aim of reaching the critical threshold of €1 billion in managed assets.
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13 A shopping mall in Gaillon, France Two separate units in Saint-Gaudens, France One unit in Chambly, France One asset in Renazé, France Disposal of 4 non-strategic assets in 2024 HIGHLIGHTS 1 Net selling price. For a total of €2.4m1, in line with expert valuations.
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Perpetuation of sustained rental activity HIGHLIGHTS 82 leases signed 48 new leases 34 renewals €7.6mm in gross annual rental income Occupancy rates on the rise for the past 3 years, reaching 95.4% as at 31/12/2024 (vs 94.7% as at 31/12/2023 and 94.3% at 31/12/2022) Recovery rate of rents, charges and taxes in excess of 99% WALT of 4.7 years (vs 4.9 years as at 31/12/2023) WALB of 2.1 years (vs 2.3 years as at 31/12/2023) 14
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Attractive retail tenants HIGHLIGHTSDISTRIBUTION OF RENTAL INCOME AND EXAMPLES OF RETAIL TENANTS BY STORE TYPE, AS A % 4%4% Beauty and health7%7% Services 12%12% Food 17%17% Discount 19%19% Leisure and culture 19%19% Household goods 22%22% Personal products The top 15 retailers account for a third of total Patrimoine & Commerce rental income, distributed evenly across resilient business sectors. 15
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Financials
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Simplified P&L as at 31 December 2024 FINANCIALS In millions of euros 12 months 31/12/2024 12 months 31/12/2023 Change (as a %) Gross rental income 52.6 50.5 +4.1% Net rental income 49.1 46.7 +5.2% Operating expenses and other income (6.0) (5.1) +18.5% Normative EBITDA 43.0 41.6 +3.5% Net cost of debt (12.2) (10.8) +13.3% Current taxes (0.2) (0.1) Funds from operations (FFO) 30.7 30.7 0.0% Change in fair value of properties 1.1 0.2 Change in fair value of financial instruments (0.8) (1.2) Investments in equity-accounted companies 9.4 (1.1) Other income and expenses 0.4 (0.5) Net income 40.8 28.2 +44.6% Non-controlling interests 0.2 0.8 Group share of net profit 41.0 29.0 +41.1% 17
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Trend in gross rents FINANCIALS Gross rents in 2023 Gross rents in 2024 Constant scope Acquisition (Saint-Parres- aux-Tertres) Delivery of extension (Ville-du-Bois) Disposals 52.6 In millions of euros 1.5 0.4 0.3 (0.1) 50.5 +4.1% 18
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Change in asset value FINANCIALS 1 Asset values excluding transfer fees. INVESTMENT PROPERTIES 1 In millions of euros 31/12/2023 31/12/2024Investments Disposals Fair value 858.3 46.8 1.1 (2.4) 903.8 19
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Change in capitalisation rate FINANCIALS Capitalisation rate as at 31/12/2023 Capitalisation rate as at 31/12/2024 Market effect: expanding rates of return on a constant scope Effect of a change in scope: Acquisition of a portfolio with a high rate of return (7.5%) Effect of shift from reduced to full transfer taxes 7.3% +15 bps +10 bps +5 bps 7.6% 20
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Solid financial structure FINANCIALS 959 959 Assets Dec. 2024 Liabilities Dec. 2024 Other Other Non-controlling interests Equity RNAV/share reached €30.10/share, i.e. a 3.3% increase over 31 December 20231 Borrowings and financial liabilities Cash Investment properties €904m including Group share of ownership in assets owned by equity-accounted companies and assets held for sale 889 19 51 426 478 43 11 1 Adjusted for the distribution of dividends, the RNAV would have been €499m (€31.40/share), up 7.8% from 31 December 2023. 21
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LTV ratio still highly contained FINANCIALS 400 70% 65% 60% 55% 50% 45 % 40% 35% 30% 25% 350 300 250 200 150 100 50 0 Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Dec. 2024 47.2% 45.0% 48.2% 46.8% 45.2% 44.0% 43.9% 43.1% 337 332 388 371 358 360 369 383 Net debt in millions of euros LTV as a % 22
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Limited exposure to tighter financing conditions Mortgages Corporate & debenture loans Average interest rateInterest coverage ratio Financial leases Debt structure as at 31 December 2024 78%% Hedged debt 3.9 yearsyears Average debt maturity 7 % 74 % 19 % FINANCIALS Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Dec. 2024 2.15% 2.04% 2.07% 2.76% 3.12% 3.74 4.08 4.20 3.84 4.05 3.79 3.70 2.00% 1.00% 0% 3.00% 4.00% 5.00% 2.30%2.68% 23
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P&C: A high-yield property company FINANCIALS RNAV/share (in €/share) Dividends (in €/share) Return on RNAV 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 3.4% 3.8% 4.2% 4.4% 4.5% 4.6% 4.6% 4.6% 4.6%4.7% 4.7%4.9% 0.80 0.85 1.0 1.08 1.15 1.20 1.25 1.25 1.25 1.30 1.35 1.35 Historically high distribution rate RNAV growth per share Proposed dividends for 2024 > 60% of FFO for the past 7 years +30% in 12 years €1.35 per share Post-subprime crisis War in Ukraine Inflation, rising rates Yellow vests protests COVID pandemic Resilient results for P&C in spite of various economic crises, with a greater ability than other commercial segments to absorb crises, providing proof of the solidity of P&C’s business model. 23.2 22.6 23.9 24.7 25.8 26.0 26.7 25.7 26.7 28.5 29.1 30.1 24
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Strategy and outlook Patrimoine & Commerce, a high-yield real estate company
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P&C: France’s retail park leader STRATEGY AND OUTLOOK 6 regional offices 81 assets A DENSIFIED NATIONAL NETWORK TARGET SIZE OF > €1BN IN ASSETS Dec. 2009 Dec. 2012 Dec. 2018 Dec. 2024 Target incl. development pipeline 760 904 > 1,000 489 164 Yearly growth 2009-2024: 11% La Rochelle Cherbourg Lille Clermont- Ferrand Strasbourg Limoges LYON PARIS AIX-EN- PROVENCE Marseille Nice BORDEAUX RENNES Angoulême Tours Toulouse Retail park Shopping Mall Tertiary building Regional offices NANCY 75 retail parks 5 shopping malls 1 tertiary buildings Real estate value, in millions of euros 26
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Strategic priorities for P&C STRATEGY AND OUTLOOK Continue expanding our portfolio Proactive management of the mix (increasing the discount, dining, leisure and food distribution segments) Selective acquisition of relevant sites Opportunities for external growth Develop and transform existing assets Eight projects that have received or applied for a building permit covering some 15,000 sqm, representing an investment of €35+ million with an average return of more than 9% + 15 complementary projects already identified, representing 60,000+ sqm of space, at least 10 of which projects aim to apply for a building permit within the year (representing 40,000+ sqm) Support the energy transition Rollout of electric charging stations Reduction of energy usage and selective renovation of assets based on an identified path to decarbonisation and a green CapEx plan, which are currently in the process of implementation Installation of solar panels (25+ projects currently under consideration or awaiting application for a building permit, representing 180,000+ sqm of panels rolled out and a target capacity of about 40 MW) 27
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Saint-Égrève, France Acquisition and redevelopment of a retail complex STRATEGY AND OUTLOOK A THREE-PART OPERATION • Acquisition of an existing building • Conversion of the existing building, adjusting the allocation of space between units and creating an additional unit • Creation of two further units KEY FIGURES Plantings in the car parks and around the façades Investment €11m Acquired land 23,000 sqm Additional floor space 825 sqm Delivery target HY1 2026 Existing floor space 8,200 sqm Rate of return 9.3% A48 A49 L’isle-d’Abeau Grenoble Voiron Cap 38 Retail park Saint-Égrève Romans-sur-Isère 15 minutes away 28
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Solar power An opportunity to generate green energy, an additional driver of growth STRATEGY AND OUTLOOKINITIAL PRIORITY SITES FOR 2025-2028 Examples Poitiers: 17,000 sqm of shade structures in car parks, with a total capacity of 3.4 MW Wittenheim: 10,000 sqm of solar panels on rooftops, with a total capacity of 1.9 MW 25+ Sites (that have received or applied for a building permit) 180,000+ sqm Target area covered by installed solar panels ~40 MW Target capacity 17,000+ Number of individuals’ power usage in one year (equivalent) 9,000+ tCO2 Equivalent tonnes of CO2 emissions saved 29
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Charging stations 27 car parks in 2024, another 41 targeted for 2025 STRATEGY AND OUTLOOK 84 Car parks ~300 Stations installed 140 kWh Average power of charging stations, making them high-power stations €0,7m Expected target rent 2027 Completion of rollout PACE OF ROLLOUTZero CapEx / zero OpEx model: payment of a portion of the revenue to P&C in the name of rent for the installed locations General overview • 2024: 27 car parks (32% of total) • 2025: 68 car parks (47% of total) • 2026-2027: 84 car parks (100% of total) Example of an installed site Saint-Gaudens France • 4 charging stations • 8 charging points (1 at a disabled parking space) • 22-150 kWh 30
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P&C’s commitment to energy renovation for its assets STRATEGY AND OUTLOOK MAIN POINTS OF LEVERAGE FOR LOWERING ENERGY CONSUMPTION TARGETED RESULTS Installation of a BMS Installation of a heat pump or air destratifier White paint on rooftopsRecommended temperatures Building/ roofing insulation UV filtersLED relamping Application of white paint to rooftops Example of work carried out in 2024 - Provins Aerial view of the roof 1,200 sqm Painted surface area -5 -15% Reduction in energy costs 4-6°C Decrease in temperature during the hottest periods 70-90% vs 20-30% Proportion of sunlight reflected by a white roof compared to a traditional roof Implementation in progress for the path to decarbonisation by 2030 and the associated green CapEx plan. 31
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Winning strategy of a high-yield real estate investment trust STRATEGY AND OUTLOOK Leader in low-cost retail parks in France Loan to value ratio of around 50% Target assets of €1bn Distribution rate close to 60% of FFO Returns greater than 7% 32
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Appendices
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34 24.0 % 23.8% 11.9 % 9.5 % 5.6 % 3.4 % 4.4 % 2.1 % 15.3 % 27.4 % 19.4 % 9.7 % 7.9 % 6.3 % 5.4 % 4.3 % 3.5 % 16.1 % Shareholding and voting rights as at 31 December 2024 APPENDICES DUVAL FAMILY PREDICA (Crédit Agricole) VERGELY FAMILY BANQUE POPULAIRE VAL DE FRANCE (Groupe BPCE) GRAFF FAMILY CRÉDIT AGRICOLE CENTRE FRANCE ROBBE FAMILY SURAVENIR (Crédit Mutuel) OTHER SHAREHOLDERS AND ENTITIES Poitiers Porte Sud Retail Park, Poitiers, France SHAREHOLDING STRUCTURE VOTING RIGHTS
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Patrimoine & Commerce 45 avenue Georges Mandel, 75116 Paris, France +33 (0)1 46 99 47 79 / contact@patrimoine-commerce.com Thank you!