a unique way to invest in apartments · • 27 apartments, 4 stores and 2 offices spread over 3...
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18/11/2017
A unique Way to invest in Apartments
Finance Avenue
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Topics
1. Company profile & strategy
2. Belgian residential market
3. Key achievements in 2017
4. Stock & Conclusion
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Topics
1.Company profile & strategy
2. Belgian residential market
3. Key achievements in 2017
4. Stock & conclusion
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Company profile
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RREC (SIR/GVV) listed on
Euronext since 1999
The specialist in residential real estate
40 professionals managing the
full cycle of property
Portfolio of over € 450
mio
Focus on Belgium
Offering yearly increasing dividend
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A strategy based on four pillars -Managing the full cycle of real estate
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Acquisitions of big sites
Advantage of exit tax
Acquisitions in shares
Acquisitions at cost
Life Cycle Cost
Efficiency of buildings
Service to tenants
Continuous refurbishment
Maximisation of capital gains
Continuous rejuvenation
Regular « cleaning up »
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A strategy based on four pillars -Managing the full cycle of real estate
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Unique positioning
on the market
Investor
Developer Active
disposal process
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A strategy in line with a world full of changes
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Cities Sustainability
Connectivity Mobility
Housing
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Topics
1. Company profile & strategy
2. Belgian residential market
3. Key achievements in 2017
4. Stock & conclusion
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Context of dynamic demographic growth
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Bron: FOD Economie
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Context of dynamic demographic growth
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Growth of population period 2015-2030 (11,9 mio):
• Brussels: +10 %• Flanders: + 5%• Wallonia: + 7%
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Number of householdsperiod 2015-2030 (5,3 mio):
• Brussels: +9 %• Flanders: + 10%• Wallonia: + 13%
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Belgian residential market 2016Investment Market
• Still cheaper credits (- 15 à -50 bp)
• Less return on alternative investments
• Growth of population
Strong activity : record year with +8,2 % (2015) – 115,000 transactions
Prices rising (especially for new apartments)
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Belgian residential market in 2016
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2016Evolution
2016-2015
Evolution
2016-2012
Flanders 226,850 2,6% 9,1%
Wallonia 156,300 1,2% 6,7%
Brussels 404,400 0,4% 13,9%
Belgium 210,800 3,6% 8,9%
Evolution of the average price per house per region, in EUR Source: Statbel
2016Evolution
2016-2015
Evolution
2016-2012
Flanders 227,200 -1,5% 10,0%
Wallonia 173,600 1,9% 7,6%
Brussels 233,100 1,7% 7,0%
Belgium 220,500 0,0% 9,1%
Evolution of the average price per apartment per region, in EUR Source: Statbel
Only for transactions submitted to registration fees.
Regarding houses: mansions, villas and rooming houses not included
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Brussels Letting Market
• Cf. “Observatiecentrum van huurprijzen 2016” (Brussels)
• Sample of 5,000 units out of 300,000
• Average rent : 710 EUR/month (709 in 2015)
• Median rent: 660 EUR/month (650 in 2015)
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Topics
1. Company profile & strategy
2. Belgian residential market
3. Key achievements in 2017• Portfolio
• Acquisitions
• (Re)Development
• Property Management
• Sales
• Key Figures & Financial Results
4. Stock & conclusion
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Portfolio
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Portfolio – properties in operation
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Portfolio spread over Belgium & The Netherlands
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Acquisitions
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Acquisitions 2017 – Development ProjectsJourdan (Saint-Gilles)
• 5,800 m²
• 69 parking spaces
• Office building to be converted into a residential building
• 55 units
• Provisional acceptance of works mid-2020
• Immediate expected yield of +/- 5.25%
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Acquisitions 2017 – Existing buildingsPort Zélande
• Strenghtening the position in the Center Parcs Port Zélande
• Acquisition of 7 additional cottages & 40 apartments
• Leased for a period of 15 years
• Initial rent of 43,000 indexed annually
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Acquisitions 2017 – Existing buildingsInvesters SA
• Acquisition of all the shares of company Investers SA on August 31st
• 27 apartments, 4 stores and 2 offices spread over 3 different buildings in Uccle (8 apartments, 3 shops), Schaerbeek (10 apartments) and Saint-Gilles (9 apartments, 2 offices, 1 retail space)
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Saint-Gilles
Uccle
Schaerbeek
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Acquisitions 2017 – Existing buildingsLibertys, Auderghem
• VOP transferred the ownership of a building located Place de l’Amitié in Auderghem
• Acquisition on September 13th
• 40 apartments, 41 basements and 40 parking spaces
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Development projectsBrunfaut- Molenbeek
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• 93 apartments
• Demolition works starting in the
coming weeks
• Delivery expected Q42019
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(Re)Developments
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Development projectsThe Inside
• 95 units
• Building accepted on June 1st 2017
• First tenants since July 1st 2017
• So far, more than 60% of the apartments have been rented
• www.theinside.be
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Development projectsThe Pulse - Molenbeek
• 96 units (93 apartments & 3 houses)
• Delivery in 3 phases:
• Building C : November 2017
• Buildings A&B : January 2018
• Own development
• Urban renewal
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Development projectsReine Astrid, Kraainem
• 40 residential units
• Retail/offices units on ground floor
• Delivery expected H2 2018
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Development projectsMTC2, Woluwe-Saint-Lambert
• Building permit introduced –expected Q2 2018
• 47 apartments
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Refurbishment projectsScheldevleugel,Oudenaarde
• 95 units
80 studios, 15 apartments
• 75 garage boxes
• Renovation of the first faze (empty apartments) finished
• www.scheldevleugel.be
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Refurbishment projectsLéopold & Saint-Hubert, Liège
• Works started in both buildings
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Léopold Saint-Hubert
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(Re)DevelopmentAlready a solid track record : 400 new units & 36 renovated
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Name # units Delivery Description
Galerie de l’Ange 6 2014 New apartments in existing building of portfolio
Trône 16 2015 New Building - Iconic location – Fully let
The Link 123 2015 Office reconversion-Student House – Fully let
Ghlin 20 2016 Refurbishment of existing houses – Fully let
Arch View 16 2016 Refurbishment of existing building – Fully let
The Horizon 160 2016 Office reconversion – New way of living – Fully let
The Inside 95 Q2 2017 Office reconversion – 50% let
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(Re)DevelopmentComing soon… 330 new units & 135 renovated
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Name # units Delivery Description
Célidée 96 Q4 2017 - Q1 2018 Urban renewal
ScheldevleugelOudenaarde
40 / 95 Q3 2017 / 2018-2019 Asset Management -Value add strategy
Saint-Hubert 51 -Liège
6 2018 Asset Management –urban renewal
Reine Astrid -Kraainem
40 2018 New building
Leopold - Liège 29 + 7 2019 Asset Management –urban renewal
Brunfaut 96 2019 New building - Urban Renewal
MTC2 47 2020 New building
Jourdan 95 50 2020 New building
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Property Management
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Property ManagementA unique expertise on the market
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Sales
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• Maximization of capital gains
• Regular « cleaning up » of less performing assets in the portfolio
• Continuous rejuvenation of the portfolio
Disposal process
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• Ongoing sales of the buildings
• Mélèzes (Woluwe-Saint-Lambert)
• Birch house (Etterbeek)
• Bosquet-Jourdan (Saint-Gilles)
• Jardins de la Cambre (Ixelles).
Jardin de la Cambre Bosquet Jourdan
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Financial Results
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CONSOLIDATED KEY RESULTS (IN €) 1 2 From 1/1/2017 to 30/09/2017
From 1/1/2016 to 30/09/2016
Net rental result 16 517 317 13 840 918
Property result 14 639 284 12 032 680
Operating result before the portfolio result 10 002 326 8 093 891
Portfolio result
- Result on sales (distributable capital gain) 2 788 244 3 207 085
- Changes in fair value 3 089 266 10 949 491
Financial result
- Financial result excluding changes in fair value of financial assets and liabilities
-2 679 977 -2 244 117
- Changes in fair value of financial assets and liabilities 3
1 152 877 -3 690 854
Net result 11 494 006 13 259 816
Average number of shares 4 3 157 351 3 147 897
Net result of core activities 7 107 528 5 801 646
Net result of core activities per share (4) 2.25 1.84
Distributable result 9 950 390 9 010 253
Distributable result per share (4) 3.15 2.86
On 30/09/2017 On 30/12/2016
Net value per share 69.20 65.19
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Topics
1. Company profile & strategy
2. Key achievements in 2017
3. Belgian residential market
4. Stock & conclusion
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Evolution of the stock price & dividend
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Comparison return
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The HIB team
…without whom all of this wouldn’t be possible…
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Thank you for your attention!
Visit our stand n° 106!
18/11/2017Finance Avenue
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