A unique Way to invest in Apartments · • 27 apartments, 4 stores and 2 offices spread over 3 different buildings in Uccle (8 apartments, 3 shops), Schaerbeek (10 apartments) and

18/11/2017

A unique Way to invest in Apartments

Finance Avenue

2

Topics

1. Company profile & strategy

2. Belgian residential market

3. Key achievements in 2017

4. Stock & Conclusion

18/11/2017Finance Avenue

3

Topics

1.Company profile & strategy



4. Stock & conclusion


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Company profile


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

18/11/2017

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 »

Finance Avenue

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A strategy based on four pillars -Managing the full cycle of real estate


Unique positioning

on the market

Investor

Developer Active

disposal process

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A strategy in line with a world full of changes


Cities Sustainability

Connectivity Mobility

Housing

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Topics






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Context of dynamic demographic growth


Bron: FOD Economie

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Context of dynamic demographic growth

18/11/2017

Growth of population period 2015-2030 (11,9 mio):

• Brussels: +10 %• Flanders: + 5%• Wallonia: + 7%

Finance Avenue

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


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



3. Key achievements in 2017• Portfolio

• Acquisitions

• (Re)Development

• Property Management

• Sales

• Key Figures & Financial Results



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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)


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


• 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


http://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


http://www.scheldevleugel.be/

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Refurbishment projectsLéopold & Saint-Hubert, Liège

• Works started in both buildings


Léopold Saint-Hubert

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(Re)DevelopmentAlready a solid track record : 400 new units & 36 renovated


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


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


• 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


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






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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!

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Documents

A unique Way to invest in Apartments · • 27 apartments, 4 stores and 2 offices spread over 3 different buildings in Uccle (8 apartments, 3 shops), Schaerbeek (10 apartments) and