Company Update February 2015 - Dea Capital

Page created by Amy Lee
 
CONTINUE READING
Company Update February 2015 - Dea Capital
Company Update
February 2015
Company Update February 2015 - Dea Capital
Introduction to IDeA FIMIT sgr
                                   IDeA FIMIT is controlled by DeA Capital with a 64.3% stake

> Introduction to IDeA FIMIT sgr   >   DeA Capital is part of the De Agostini Group, a family-owned group, active worldwide, with
                                       around 5 bln € in revenue in 2014
> Why IDeA FIMIT sgr

   - Largest Italian real estate                                 Simplified structure of the De Agostini Group
     management company
   - High institutional profile                           Drago family
   - Experience in execution                              Boroli family
   - Proven asset management
     skills
   - Focus on "Core"                                                                                                2.4% stake
                                                                                                                 in Assicurazioni
> Real estate market scenario                                                                                        Generali
> Strategy & Outlook

> Conclusions                            Publishing                     Media &           Gaming & Services         Finance
                                                                     Communication
                                                                      Zodiak Media           Gtech Group           DeA Capital
                                          Partworks
                                                                      Group (84,2%)            (59,5%)              (58,3%)

                                       Direct Marketing                   Atresmedia                              IDeA Capital
                                                                                           Italy (Lottomatica)
                                                                           (20,9%)                                 Funds SGR

                                           Books                                                                 IDeA FIMIT sgr
                                                                                               Americas
                                                                                                                    (64,3%)

                                                                                             International       Innovation RE

                                                                                                                                    2
Company Update February 2015 - Dea Capital
Introduction to IDeA FIMIT sgr
                                   In a nutshell

> Introduction to IDeA FIMIT sgr   >      IDeA FIMIT sgr is Italy’s largest Real Estate Fund Management Company with approximately €
                                          9 bn of assets under management and a market share of 21%
> Why IDeA FIMIT sgr
                                   >      Established in October 2011 as the result of the incorporation of First Atlantic RE sgr into FIMIT sgr,
   - Largest Italian real estate          IDeA FIMIT sgr combines the experience of two of the main players in the Italian market
     management company            >      Over time, the company’s funds have attracted several primary domestic and international investors,
   - High institutional profile           including pension funds, private companies, financial institutions as well as sovereign wealth
                                          funds
   - Experience in execution
                                   >      The Mission of the company is to develop, promote and manage real estate financial instruments to
   - Proven asset management              satisfy the demand of Italian and international investors, with a focus on institutional clients
     skills
                                   >      IDeA FIMIT specializes in core investments with a smaller exposure to investments in value added
   - Focus on "Core"               >      IDeA FIMIT pursues low levels of risk, stable cash flows, low volatility, and implements simple
> Real estate market scenario             financial structures
> Strategy & Outlook

> Conclusions

                                       Rome, Via Flaminia           Rome, Via Curtatone         Milan, Piazza Cordusio        Rome, Piazzale Mattei

                                       Milan, La Rinascente       Rome, Piazza Kennedy           Colonia, DB Campus            Naples, Via Toledo

                                                                                                                                                      3
Company Update February 2015 - Dea Capital
Why IDeA FIMIT sgr
                                      An ideal partner to invest in real estate

> Introduction to IDeA FIMIT sgr
                                                                                       Largest Italian real estate
> Why IDeA FIMIT sgr                                                                   management company
   - Largest Italian real estate                                                       ~€ 9 bln of assets under
     management company                                                                 management
   - High institutional profile                                                        21% market share (1)
   - Experience in execution                                                           Significant benefits deriving from
                                           Focus on "Core"                              size and economies of scale                High institutional profile
   - Proven asset management
     skills                                Focus on yielding assets (80% of                                                         Shareholder base includes De
                                            the portfolio)(3) in Milan and                                                            Agostini Group and some of
   - Focus on "Core"
                                            Rome                                                                                      Italy’s most important pension
> Real estate market scenario                                                                                                         funds
                                           Established relationships with
> Strategy & Outlook                        high standing tenants                                                                    Institutional investors account
                                           Low use of leverage (31%      LTV)(4)                                                     for ~85%(2) of the funds’
> Conclusions
                                                                                                                                      investor base

                                                          Proven asset management                                    Experience in execution
                                                          skills
                                                                                                                      Ability to finalize complex deals
                                                          Ability to maximize income from                             in a short space of time
                                                           the income-producing                                       Unique track record in real
                                                           properties                                                  estate investments in Italy
                                                          Ability to implement successful                            Attention to quality, cost
                                                           exit strategies                                             management and timing

                                   1. Based on AuM of the real estate funds included in the Assogestioni report, as of June 2014, plus AuM of Beni Stabili Gestioni sgr
                                   2. Includes: Pension Funds, Insurance Companies and Banks
                                   3. By value
                                   4. Weighted average LTV of the funds under management                                                                                  4
Company Update February 2015 - Dea Capital
Why IDeA FIMIT sgr
                                   Largest Italian real estate fund management company

> Introduction to IDeA FIMIT sgr   >       IDeA FIMIT is the largest Italian real estate fund management company with 37 real estate funds
                                           under management, and approximately € 9 billion of aggregated assets
> Why IDeA FIMIT sgr

   - Largest Italian real estate                                   Ranking of italian asset management companies (€ bn))
     management company
   - High institutional profile    1°                                                                                    AuM               ~9.0
   - Experience in execution                                                                                       NAV                      6.2
   - Proven asset management
     skills
                                   2°                                                                                   AuM                ~7,01
   - Focus on "Core"
> Real estate market scenario

> Strategy & Outlook               3°                                                                             AuM                       5.5
> Conclusions
                                                                                                            NAV                             4.2

                                   4°
                                                                                                              AuM                           5.0
                                             AM company
                                                                                                      NAV                                   2.9

                                   5°                                                                  AuM                                  3.2
                                             AM company
                                                                                              NAV                                           1.3

                                                                                                      Total Italian real estate funds      41,5
                                   Source: Assogestioni / IPD – Italian Real Estate Funds June 2014

                                   1Investire Immobiliare SGR, Polaris Real Estate SGR, and Beni Stabili Gestioni SGR merged in December 2014.
                                   AuM is estimated based on December 2014 data, NAV is not available.

                                                                                                                                                   5
Company Update February 2015 - Dea Capital
Why IDeA FIMIT sgr
                                   High institutional profile

> Introduction to IDeA FIMIT sgr    >       IDeA FIMIT’s shareholder base includes DeA Capital and some of the main national pension
                                            funds, both public and private
> Why IDeA FIMIT sgr
                                    >       The shareholder structure is a key asset for the Company, allowing it to be recognized as an ideal
   - Largest Italian real estate            partner for Italian and international institutional investors in real estate
     management company             >       IDeA FIMIT has a broad range of investors in its funds, including some of Italy’s most important
   - High institutional profile             pension funds, that consider IDeA FIMIT to be their point of reference in the real estate fund
                                            management sector
   - Experience in execution
                                    >       IDeA FIMIT has about 80 institutional investors and more than 70.000 retail investors(1)
   - Proven asset management
     skills
   - Focus on "Core"                                        Shareholders                                       Institutional investors

> Real estate market scenario                                                                                             ENASARCO, INARCASSA, INPS, CNN,
                                                            Enasarco                            Pension                   ENPAM, INPGI, CNPR, EPAP, Sanpaolo
> Strategy & Outlook                                          6,0%                                                68.5%   IMI pension fund, ex-CRT employees
                                                                                                funds                     pension fund
> Conclusions
                                                                                                                          Unicredit, Intesa, Banco Pop., BPM, Banca
                                                                                                Banks and                 Marche, BPER, BPVi, Cattolica,
                                              INPS                                                                15.9%   Assicurazioni Generali, Aviva, Fondiaria
                                                                                                insurance                 SAI, UGF Assicurazioni, Reale Mutua
                                              29,7%

                                                                                                                          Exor, De Agostini Group, Redilco RE,
                                                                                                Corporations      9.4%    Piaggio, Malacalza Group, Lamaro Group,
                                                                                                                          ISMEA, Enel

                                                                                                                          Conferenza Episcopale Italiana,
                                                                               DeA Capital                                Government of Singapore Investment
                                                                                                Others             6.2%
                                                                                 64,3%                                    Corporation, Whitehall (Goldman Sachs),
                                                                                                                          Italian Foundations

                                   1. Data on listed funds refer to the initial placement
                                                                                                                                                                    6
Company Update February 2015 - Dea Capital
Why IDeA FIMIT sgr
                                   Experience in execution: our track record

> Introduction to IDeA FIMIT sgr    >       IDeA FIMIT’s track record is unparalleled in the Italian market

> Why IDeA FIMIT sgr                                                                  FIMIT sgr
                                                       FIMIT sgr                                                                        IDeA FIMIT sgr        IDeA FIMIT SGR
                                                                                      Launch of Fondo Omega
   - Largest Italian real estate                       Launch of Fondo                                                                  8 property funds      Awarded the management
                                                                                      (contribution and lease back of 284
     management company                                Theta Immobiliare                                                                are transferred       of Spazio Industriale
                                                                                      properties by the Intesa Group),
                                                       Listing of Fondo Delta                                                           from Duemme sgr       Fund previously managed
                                                                                      Fondo Omicron Plus (contribution
   - High institutional profile                        (the first retail fund                                                                                 by Prelios SGR
                                                                                      and lease back of 72 properties by
                                                       dedicated to hospitality)                                             FIMIT sgr                        Launch of IDeA FIMIT
   - Experience in execution                                                          the Unicredit Group), Fondo Eta
                                                       with a total value of over                                            Launch of Fondo                  Sviluppo Fund
                                                                                      and Fondo Tau
                                                       €210 million                                                          Senior, a fund                   Selected for the
   - Proven asset management       FIMIT sgr                                          FARE sgr
                                                       FARE sgr                                                              with social and                  management of a Social
     skills                        Fondo Alpha is                                     Awarded the management of
                                                       Launch of Fondo                                                       ethical drive                    Housing Fund sponsored
                                   the first Italian                                  Fondo Atlantic 2 - Berenice,
                                                       Atlantic 1, a contribution                                                                             by Cassa Depositi e
   - Focus on "Core"               property fund                                      previously managed by Prelios sgr.
                                                       fund with 46 properties                                                                                Prestiti
                                   created by                                         Launch of Fondo Atlantic 6 and
> Real estate market scenario                          and a net asset value of
                                   asset                                              Fondo Atlantic 8
                                                       € 720 mln                                                                                    2013      2014
                                   contribution and                                                                             2011      2012
> Strategy & Outlook                                                                                                  2010
                                   the first listed
                                                                                               2008          2009
> Conclusions                      on the stock                                     2007
                                   exchange                            2006
                                                               2005
                                                     2002
                                        1998                                                                                                   Merger of FARE       IDeA FIMIT SGR
                                                                                                                                               sgr into FIMIT sgr   Launch of:
                                                                                                              FIMIT sgr                                             Fondo MOMA
                                                                                                                                               IDeA FIMIT sgr
                                                                                                              Second contribution for Fondo                         through an equity
                                                                                    FARE sgr                                                   Launch of Fondo
                                                                                                              Omicron Plus (179 properties)                         contribution of
                                                            FIMIT sgr               Launch of Fondo                                            Conero and
                                   FIMIT sgr is                                                               Launch of Fondo Rho through                           Blackstone;
                                                            Launch of the           Ippocrate a fund                                           Fondo Sviluppo
                                   incorporated                                                               the contribution of a property                        Fondo Armonia
                                                            Sigma and               dedicated to a private                                     del Territorio
                                   upon initiative                                                            portfolio by Gruppo Fondiaria                         (equity from Colony
                                   by Medio                 Gamma funds             pension fund with         SAI.                                                  Cap. to invest in a
                                   Credito                  FARE sgr is             assets of c. € 1.8 bn     FARE sgr                                              Banca Intesa property
                                   Centrale and             incorporated            as of end of 2012         Launch of Fondo Atlantic 12                           portfolio) and
                                   INPDAP                                                                                                                           Fondo Ambiente
                                                                                                                                                                    (Rome – contribution
                                                                                                                                                                    from AMA)

                                                                                                                                                                                7
Company Update February 2015 - Dea Capital
Why IDeA FIMIT sgr
                                   Experience in execution: a few examples
                                               Date          Contributor             Contribution                        Main details
> Introduction to IDeA FIMIT sgr
                                                                 INPDAP              27 properties with       - First fund quoted in Italy and the first
> Why IDeA FIMIT sgr                           June
                                                         Listed for 18.476 retail     an overall value        example of an sgr being given the task of
                                               2002
                                                                investors              € 247 million             value creation of public properties

                                                                                                                                                                Listed Property Funds
   - Largest Italian real estate
     management company
                                                                                                              - First retail fund to invest in properties
   - High institutional profile
                                                         Created through fund                                 dedicated to tourism and recreational use
                                              March
   - Experience in execution                            raising, listed for 17.225      € 210 million
                                              2009
                                                             retail investors                              - In 2009-2010 Delta bought a portfolio of 8
   - Proven asset management                                                                                       important multiplex properties
     skills
   - Focus on "Core"                                    SPE for Goldman Sachs’
                                                                                     46 properties with       - Properties from important portfolios of
> Real estate market scenario                  June          WhiteHall Fund,
                                                                                     an overall value of     Immobiliare Metanopoli, Telecom and GS
                                               2006      listed for 11.297 retail
                                                                                        € 636 million                         Carrefour
> Strategy & Outlook                                             investors

> Conclusions                                                                                                  - Omega is the first main example of
                                                                                                             Sale&Leaseback undertaken by an Italian

                                                                                                                                                                Contributions from Financial Instritutions
                                                                                     284 properties with
                                             December   Immit of the Intesa San                               bank to increase returns of its properties
                                                                                     an overall value of
                                               2008          Paolo Group                                   - Represents the most important example of
                                                                                        € 850 million
                                                                                                             innovation in the Italian propery market in
                                                                                                                                 2008

                                                                                     72 properties with
                                                                                                           - Properties include some historical offices of
                                                                                     an overall value of
                                             December                                                          Unicredit like Palazzo Broggi in Piazza
                                                         Historical offices of the   € 950 mln (in 2009
                                               2008                                                          Cordusio in Milan, the bank’s headquarters,
                                                            Unicredit Group            another capital
                                                                                                             and also the landmark office of Unicredit in
                                                                                     contribution of 179
                                                                                                                   via della Repubblica in Parma.
                                                                                         properties)

                                                                                                            - Financed by a group of banks: Unicredit
                                                                                     15 properties with
                                             December   Fondiaria-SAI and Milan                              Group, Banca Imi, BNP Paribas, Calyon,
                                                                                     an overall value of
                                               2009          Assicurazioni                                 Société Generale, MPS Capital Services and
                                                                                        €478 million
                                                                                                                           BancaSAI

                                                                                     135 properties with
                                              August                                                           -Third example of a bank undertaking
                                                         Banche delle Marche         an overall value of
                                               2011                                                                      Sale&Leaseback
                                                                                        €270 million

                                                                                                                                                            8
Company Update February 2015 - Dea Capital
Why IDeA FIMIT sgr
                                   Proven asset management skills

> Introduction to IDeA FIMIT sgr    >       In aggregate, the funds managed by IDeA FIMIT have consistently outperformed the IPD index
                                            for Italian pooled property funds in the past few years
> Why IDeA FIMIT sgr

   - Largest Italian real estate   Cumulated performance: IDeA FIMIT funds vs IPD Italy Biannual Property fund Index (2004=100)
     management company
                                      Index – 2004 = 100
   - High institutional profile
                                    200
   - Experience in execution
                                    180
   - Proven asset management
     skills                         160
   - Focus on "Core"                140
> Real estate market scenario       120
> Strategy & Outlook                100
> Conclusions                         80
                                                          Performance of some of the funds managed: IRR at the end of 2013
                                      60
                                      40
                                      20                       8,95%                 9,57%                  10,5%                  12,0%                    11,66%

                                        0
                                                2004         2005          2006         2007          2008         2009          2010         2011          2012     2013

                                                               IPD Italy Biannual Property Fund Index                             IDeA FIMIT sgr Funds
                                   Source: IPD Italian Pooled Property Fund Indices, 31/12/2013. IDeA FIMIT data calculated using the same method as IPD:
                                   [(Nav variations + distributions - contributions) / Navt-1 ]

                                   Note: 2014 data not yet available

                                                                                                                                                                            9
Company Update February 2015 - Dea Capital
Why IDeA FIMIT sgr
                                        Focus on "Core": high quality portfolio

> Introduction to IDeA FIMIT sgr         >         IDeA FIMIT’s real estate portfolio offers geographical diversification, with high exposure to the
                                                   most important cities (about 70% in Rome and Milan) and exposure to income-producing assets
> Why IDeA FIMIT sgr                               (80%), mainly used as offices
   - Largest Italian real estate
     management company                 Assets under management by geography(1) (€ Bn)                         Breakdown by main use(2)
                                                                                                                  Industrial & Logistic               Other/
   - High institutional profile                                                                 Abroad                     5%                      Development
                                                                                                                                                      12%         € 8,2 Bn
                                                                                                (indirect
   - Experience in execution                                                                                   Nursing homes
                                                                                                investments)         0%
   - Proven asset management                                    55       72                                     Residential
     skills                                                                                       ~88,2            3%
                                        18              3.391
                                                                  403
   - Focus on "Core"                                                                                            Hotel/Leisure
                                                                                                                                                                 Office
                                                                                                                                                                 57%
                                                                                                                     5%
> Real estate market scenario                297                297
                                                                                                                        Bank
> Strategy & Outlook                               32                                                                 Branches
                                                                                                                         9%               Retail
                                                                248              256                                                       9%
> Conclusions                                                           69
                                                                                     55                        Breakdown by rental status(2)
                                                                                          0.2
                                                                             2.533
                                                                                                                                 Vacant
                                                                                          149         27                          20%

                                                    227
                                                                                                     48

                                                                                                                                                                  Rented
                                                                                          50                                                                       80%

                                   1.     Data as of 30/06/2014
                                   2.     By value, as of 30/06/2014                                                                                                         10
Why IDeA FIMIT sgr
                                        Focus on "Core": low leverage of managed funds

> Introduction to IDeA FIMIT sgr        >      The weighted average Loan-to-Value of the funds managed by IDeA FIMIT is well below the limits
                                               set by the law. This ensures the solvency of the funds and leaves some room for additional
> Why IDeA FIMIT sgr                           resources to be invested
   - Largest Italian real estate        >      IDeA FIMIT funds have an average maturity of 8 years
     management company
   - High institutional profile
   - Experience in execution
                                                                Funds (#)    Assets (#)      AuM (€ Bn)        NAV (€ Bn)          LTV (%)

   - Proven asset management
     skills                                 Retail                  5            92               € 2.0             € 1.1             42%
   - Focus on "Core"                        Funds

> Real estate market scenario

> Strategy & Outlook
                                            Reserved               30            968              € 7.0             € 5.1            28%
> Conclusions                               Funds
                                                                   2(2)          167                n.a.             n.a.             n.a.

                                                                   37           1,135             ̴ 9.0(1)          ̴ 6.2            ̴ 31%

                                   1.   Data as of 30/06/2014

                                                                                                                                                11
Real estate market scenario
                                   Italian real estate market: new opportunities materialising

> Introduction to IDeA FIMIT sgr   >   IDeA FIMIT, as the clear market leader, is the ideal partner to seize the opportunities available
                                       in the Italian market
> Why IDeA FIMIT sgr

   - Largest Italian real estate
     management company                                      Weakness of the Italian economy, which has delayed a recovery in the
                                                              real estate market vs other European countries
   - High institutional profile
                                                             Until 2014: tight credit conditions and lack of liquidity
   - Experience in execution        KEY ISSUES
                                                             Fundraising still difficult
   - Proven asset management
     skills                                                  Unclear regulations and tax regime have discouraged foreign investors
   - Focus on "Core"                                          from «coming back to Italy»
> Real estate market scenario

> Strategy & Outlook
                                                             Privatization of RE assets belonging to the central and local PA
> Conclusions
                                                             Banks’ and Institutional investors’ need to increase the liquidity of their RE
                                                              portfolios
                                                             Maturity of most retail real estate funds with high quality portfolio
                                                             Need for “rescue capital” and expenditures / property repositioning
                                    OPPORTUNITIES            Property repricing/Interest rates: high spread on fixed income yields
                                                             Growing transaction volumes underpinned by international opportunistic
                                                              investors, while core investors still lack
                                                             Penetration of RE funds lower than in the largest European countries (1/2
                                                              Germany); zero exposure at private pension funds
                                                             New legislation on REITs: a first, positive sign

                                                                                                                                               12
Real estate market scenario
                                   Private wealth and transaction volume in Italy

> Introduction to IDeA FIMIT sgr   >      Italy has the highest level of net private wealth among the developed economies

> Why IDeA FIMIT sgr
                                   >      Including private debt, Italy does not have a critical level of indebtedness
                                   >      Transaction volume sharply increased from 2013 thanks to foreign investors’ inflows
   - Largest Italian real estate   >      Weakness of the Italian economy and credit crunch continued to be a constraint for domestic
     management company
                                          investors
   - High institutional profile
   - Experience in execution              Net private wealth on disposable income                                              Country Debt as % of GDP

   - Proven asset management           Real assets               Financial liabilities                              Private debt as % of GDP
     skills                            Financial assets                                                             Public debt as % of GDP
                                                                                     8,1                8,2                                                               296,1
   - Focus on "Core"                                                 7,9
                                       5,3           6,3
> Real estate market scenario                                                                                                                  157,4
                                                                                                                                                            184,8
                                                                                                                140,5         142,7
> Strategy & Outlook

> Conclusions
                                       US         Germany            Italy          France              UK    Germany         France            US          Italy           UK

                                   Source: Banca d’Italia, Ufficio Studi IDeA FIMIT; data as of 2013          Source: Eurostat, IMF, Ufficio Studi IDeA FIMIT; data as of Sep 2014

                                         Non residential transactions in Italy (€ bn)                                   Investment Volume by Asset Class %
                                                                                                                                             Mixed
                                        Domestic           Foreign                             +34,0%                            Hotels
                                                                                                                                               4%
                                                                                +62,1%                                                   11%
                                                                                                    5,3           Logistc & Ind.
                                                                                                                                    7%
                                                                                         4,7        1,0                  Other
                                       4,5        4,5         4,3                                                                  1%
                                                                                         1,4
                                                                                                                                                            49% Retail
                                                                             2,9
                                        3,5        3,3         3,5                                  4,3
                                                                              2,2        3,3
                                        1,0        1,2         0,8            0,7                                                      28%
                                                                                                                              Office
                                       2009      2010        2011            2012     2013         2014
                                   Source: Ufficio Studi - CBRE and BNP Paribas                               Source: CBRE

                                                                                                                                                                                     13
Real estate market scenario
                                   Downward trend in property prices closer to an end

> Introduction to IDeA FIMIT sgr   >        There is high correlation among property value and GDP growth

> Why IDeA FIMIT sgr
                                   >        The expected GDP expansion for the current year, should positively affect property values

   - Largest Italian real estate
     management company                                                   GDP and Property value correlation Y/Y%

   - High institutional profile                                  IPD Capital growth property Index              Real GDP Growth YoY %

   - Experience in execution       % 4
   - Proven asset management           3
     skills
                                       2                                2.2
   - Focus on "Core"                               1.7                                1.7                 1.7
                                       1                      0.9
> Real estate market scenario
                                                                                                                   0.4                         0.4
                                       0
> Strategy & Outlook                                                                                                                    -0.4
                                       -1                                                   -1.2
> Conclusions
                                       -2                                                                                        -1.9
                                                                                                                          -2.4
                                       -3
                                       -4
                                       -5
                                                                                                   -5.5
                                       -6
                                              2004     2005       2006      2007        2008   2009   2010   2011     2012   2013 2014E 2015E
                                   Source: IPD, Bloomberg, Ufficio Studi IDeA FIMIT

                                                                                                                                                     14
Real estate market scenario
                                   Downward trend in property prices closer to an end

> Introduction to IDeA FIMIT sgr   >       Real estate investments have historically outperformed other assets in the main European countries

> Why IDeA FIMIT sgr
                                   >       Property value in Italy traditionally presented a very low volatility
                                   >       Thanks to the all-time low BCE rates and to repricing, the current value of the spread between
   - Largest Italian real estate           property and 10Yr BTP yields is at its all-time high
     management company
                                   >       Real estate has become the asset class of choice for many investors
   - High institutional profile
   - Experience in execution              Total return from 2003 to 2012 for asset                           Historical monthly volatility in Italy for stocks, govt
                                          class in the main European countries (%)                                          bonds and property
   - Proven asset management                                                                                               FTSE MIB Index volatility
                                           IPD Total return Property index            Stock market
     skills                                                                                                                BTP 25yr price volatility
                                           10 yr Govt bond                                               30%               All Property real price Index volatility
   - Focus on "Core"               15
                                                                                                         20%
> Real estate market scenario      10
                                                                                                         10%
> Strategy & Outlook                5
                                                                                                             0%
> Conclusions                       0
                                                Italy        Germany         France            UK
                                   Source: Bloomberg, IPD, Ufficio Studi IDeA FIMIT                      Source: Bloomberg, Scenari immobiliari, Ufficio Studi IDeA FIMIT

                                         Capital growth: Real estate vs Stock market                              Current income: Real estate vs BTP 10yr (%)
                                                           FTSE MIB index
                                                                                                        10                    Spread
                                                           IPD capital growth property index
                                                                                                                              10 yr Govt yield
                                   170
                                                                                                                              IPD Current yield Property index
                                   140
                                                                                                        5
                                   110                                                                                                                                        4.1
                                                                                                                                                                        2.9
                                   80                                                                                                                             1.4

                                   50
                                                                                                        0
                                         2002       2004     2006     2008     2010     2012     2014
                                                                                                              2003         2006            2009            2012               2015
                                   Source: Bloomberg, IPD, Ufficio Studi IDeA FIMIT                     Source: Bloomberg, IPD, Ufficio Studi IDeA FIMIT

                                                                                                                                                                                     15
Real estate market scenario
                                   Prime yields are higher than in the main European markets

> Introduction to IDeA FIMIT sgr   >      Real estate yields in Italy are among the highest in Europe

> Why IDeA FIMIT sgr
                                                                               Prime yields in Europe (%)
   - Largest Italian real estate
     management company                                          Office                                              Retail High Street
   - High institutional profile                    Italy - Rome                             6,20                Italy - Milan                           4,90
   - Experience in execution                       Italy - Milan                          5,60                 Italy - Rome                             4,90
   - Proven asset management                                                                              Finland - Helsinki                         4,50
                                   Netherlands - Amsterdam                            5,30
     skills
                                            Spain - Barcelona                         5,25                   Spain - Madrid                          4,50
   - Focus on "Core"
                                       Denmark - Copenhagen                           5,25               Spain - Barcelona                           4,50
> Real estate market scenario
                                                Spain - Madrid                       5,00                     London - City                          4,50
> Strategy & Outlook
                                              Austria - Vienna                     4,60                Sweden - Stockholm                           4,25
> Conclusions
                                             Germany - Berlin                      4,55                   Germany - Berlin                          4,20
                                            Finland - Helsinki                     4,40            Netherlands - Amsterdam                       4,00
                                           Germany - Munich                    4,30                 Denmark - Copenhagen                         4,00

                                                 London - City                 4,25                      Germany - Munich                        4,00

                                         Sweden - Stockholm                    4,25                        Austria - Vienna                      3,90
                                                France - Paris               3,75                            France - Paris                  3,25

                                           London - WestEnd                  3,75                       Switzerland - Zurich                 3,20

                                          Switzerland - Zurich              3,20                         London - WestEnd                 2,50

                                               Current yield                                                 Current yield

                                   Source: CBRE, Ufficio Studi IDeA FIMIT

                                                                                                                                                               16
Real estate market scenario
                                   Increasing spread of RE yields vs equities and bonds

> Introduction to IDeA FIMIT sgr   >        Real estate investments in Italy now offer an attractive yield and record an increasing spread on
                                            government bond yields
> Why IDeA FIMIT sgr

   - Largest Italian real estate                                                            Net yields by Main use (%)
     management company
                                                                                                                            7.5
                                                                                                          7.0                                             7.1
   - High institutional profile                             6.3                              6.0
   - Experience in execution               5.0
                                                                           4.5
   - Proven asset management
     skills                                                                                                                               2.8
                                                                                                                                                                           1.7
   - Focus on "Core"
> Real estate market scenario

> Strategy & Outlook                      Prime     Non prime Prime High                   Prime       Non prime         Prime        Dividend   BTP 10 yr              BTP 10 yr
                                       office Milan office Milan Street                  shopping      shopping         logistic    yield 12LTM (Jan 2012)              (Average
> Conclusions                                                                             centers       centres                      FTSEMIB                              2015)
                                   Fonte: CBRE, Bloomberg, Ufficio Studi IDeA FIMIT

                                                                                      Some of the recent investments in Italy
                                                 Name / Address                           City                   Purchaser                  Price               Yield      Main use
                                                  Portfolio Olinda                       Various                 AXA REIM             €             286         9,9%          Retail
                                    Borgogioioso, Colonne e Valdichiana FOC Carpi/Brindisi/Valdichiana           Blackstone           €             170         9,0%          Retail
                                   Fiumara Shopping Center & Entert. Center              Genova           Allianz & ING Insurance     €             170         7,0%          Retail
                                                  Portfolio Arcese                       Various                 Blackstone           €             165         10,6%       Ind. / Log.
                                       Airone & Valecenter Shopping Centers              Venice                  Blackstone           €             145         8,5%          Retail
                                            Limbiate Shopping Center                     Limbiate               ING Insurance         €             145         7,5%          Retail
                                             Sede Corriere della Sera                     Milan                  Blackstone           €             120         8,6%          Office
                                                 Galleria Borromea                Peschiera Borromeo            Europa Capital        €             82          7,5%          Retail
                                               Meraville Retail Park                     Bologna                    Orion             €              76         8,5%          Retail
                                                     8 Gallery                            Torino                    GWM               €              76         8,3%          Retail
                                           Parco de' Medici - Building A                  Rome                   Blackstone           €              65         12,7%         Office
                                   Fonte: Ufficio Studi IDeA FIMIT, various sources

                                                                                                                                                                                          17
IDeA FIMIT in 2014
                                   Transactions restart: sales not yet compensated by fundraising

> Introduction to IDeA FIMIT sgr   >     2014 has seen a pick-up in the transaction volume, mainly driven by foreign institutional investors
                                         with an opportunistic approach
> Why IDeA FIMIT sgr
                                   >     This has accelerated property sales, particularly by funds closer to their term, while recovery in
   - Largest Italian real estate         fundraising was slower. 2 new funds launched in the 4Q 2014
     management company
   - High institutional profile                          IDeA FIMIT’s AuM evolution in 2014 (before fund value adjustments)
   - Experience in execution                    10,000
   - Proven asset management
     skills
                                                 9,500
   - Focus on "Core"
> Real estate market scenario
                                                 9,000
> Strategy & Outlook

> Conclusions                                                                          +450 mln €
                                                 8,500                                 inflows                     -610 mln €
                                                                                                                   outflows

                                                 8,000

                                                 7,500

                                                 7,000
                                                                     2013                                                         2014

                                   Source: IDeA FIMIT; inflows include Armonia and Moma funds (ca 300 mln, finalized in Q4 2014

                                                                                                                                               18
IDeA FIMIT outlook
                                   IDeA FIMIT: 2015-17 action plan

> Introduction to IDeA FIMIT sgr   >    In a context that remains difficult, but presents some opportunities, IDeA FIMIT is implementing a few
                                        key actions with the objective of compensating for property sales/fund reaching term, and of growing
> Why IDeA FIMIT sgr
                                        AuM in the medium term:
   - Largest Italian real estate
     management company                                                   Contribution of properties belonging to institutional investors, including pension
                                       Contributions to existing and
   - High institutional profile                                            funds and banks, mainly used as offices and retail premises, to existing funds
                                       new funds
                                                                           or to create new ones (e.g. the new Armonia Fund – Colony Capital)
   - Experience in execution
   - Proven asset management
     skills
                                                                          New, tax efficient legislation on Italian REITs opens up opportunities for IDeA
   - Focus on "Core"                   REITs (SIIQ)
                                                                           FIMIT to manage these vehicles and address new investors/markets
> Real estate market scenario
> Strategy & Outlook
> Conclusions
                                                                          Management of large residential, healthcare and office building construction
                                       Development projects
                                                                           projects in key locations (Northern Italy, Rome)

                                       Participation to tenders           Participation to tenders for new or expiring mandates (mainly pension funds)

                                                                          Innovative projects including a fund to invest in renewable energy plants
                                       Other projects
                                                                          Fundraising with foreign investors; club deals for institutionals

                                                                                                                                      19
                                       Sector consolidation               Further aggregation of smaller players, or acquisition of incremental masses

                                                                                                                                                                19
IDeA FIMIT outlook
                                   2014 financials and 2015-17 outlook

> Introduction to IDeA FIMIT sgr
                                                                                 2014F               2015-17 outlook
> Why IDeA FIMIT sgr

   - Largest Italian real estate
     management company                                                                                  Low single           Impact of property sales on AuM
                                     AuM                                      8.6 bln € (*)
   - High institutional profile                                                                          digit CAGR           compensated by new initiatives
   - Experience in execution
   - Proven asset management                                                                                                  Pressure on fees continues,
     skills                          Avg. % fee                                   0.60                  Down ~5 bps
                                                                                                                              mitigated by sector consolidation
   - Focus on "Core"
> Real estate market scenario
> Strategy & Outlook                                                           ~53 mln €                 Broadly flat
                                     Revenues
> Conclusions

                                                                                                         Low single           Cost control on personnel and
                                     EBITDA                                    ~23 mln €                                      G&A
                                                                                                         digit CAGR

                                     Note: 2014 net result will be penalised by
                                                       - PPA amortisation 7,5 mln € (estimated to go down to 1.2 mln € by 2017)
                                                       - impairments 7.4 mln €

                                     (*) Excluding Armonia and Moma

                                                                                                                                                        20
Conclusions
                                   Key takeaways (in a few tweets)

> Introduction to IDeA FIMIT sgr
> Why IDeA FIMIT sgr                   #1             Italy’s largest RE fund manager, with a high institutional profile
   - Largest Italian real estate
     management company
   - High institutional profile
                                       #Core          Focused on Core/Core+ investments, with a low risk profile
   - Experience in execution
   - Proven asset management
     skills
                                                      Perfectly positioned to confront the difficult phase in the Italian mkt
   - Focus on "Core"                   #leadership     and seize the medium-term opportunities
> Real estate market scenario
> Strategy & Outlook
> Conclusions                                         First signs of a recovery in the Italian real estate market are
                                       #market         materialising

                                                      Many initiatives in the pipeline to re-launch growth, in the short and
                                       #strategy       medium term

                                       #2015-17       Financial results expected to improve in 2015-17

           10 giugno 2005
                                                                                                                                 21
Back up
IDeA FIMIT sgr
                    Our Funds: key data

>   Trophy assets     #
                                  Fund name
                                                           Launch        Term       AuM (€ mln)
                                                                                     Y/E 2014*
                     1                Alpha               27/06/2000   27/06/2030       435
                     2                 Agris              29/12/2011   31/12/2021        91
                     3              Ambiente              30/10/2014   30/10/2029       150
                     4                 Ailati             20/10/2006   31/12/2016        74
                                                                                                  Funds in dark red color are retail
                     5                Ariete              09/11/2007   31/12/2022        90       (listed) funds
                     6              Armonia*              28/11/2014   28/11/2021       175
                     7              Atlantic 1            01/06/2006   31/12/2016       624
                     8             Atlantic 12            30/12/2009   31/12/2017        11
                     9        Atlantic 2 - Berenice       14/07/2005   31/12/2018       205
                     10             Atlantic 6            21/07/2008   31/12/2016        50
                     11             Atlantic 8            18/12/2008   31/12/2016        29
                     12       Atlantic Value Added        29/12/2011   31/12/2020        50       •   The list includes two funds
                     13                Beta               01/01/2004   31/12/2017       143           launched at the end of 2014
                     14              Castello             04/04/2005   31/12/2016        34           but not yet contributing to the
                     15               Conero              04/08/2011   31/12/2023       246
                                                                                                      fee income during the last
                     16        Creative Properties        03/04/2006   31/12/2016        27
                     17                Delta              21/02/2006   31/12/2017       226
                                                                                                      year.
                     18                 Eta               27/07/2006   29/12/2016       220       •   Total AuM from fee-
                     19              Gamma                15/03/2007   09/06/2019       286           generating funds at Y/E were
                     20   Fondo Housing Sociale Liguria   30/07/2014   31/12/2039        11           8.6 bn €, or 8.9 bn € including
                     21       IDeA FIMIT Sviluppo         20/12/2013   18/12/2043        15
                                                                                                      the Armonia and Moma funds
                     22             Ippocrate             02/03/2007   30/06/2022      1,868
                     23               Moma*               30/07/2014   31/12/2021       127
                     24              Omega                22/12/2008   31/12/2023       627
                     25           Omicron Plus            30/12/2008   31/12/2023       858
                     26             Private RE            15/11/2006   31/12/2016       110
                     27             Rho Core              14/12/2009   14/12/2019       481
                     28              Rho plus             14/12/2009   14/12/2019       527
                     29               Senior              29/12/2009   29/12/2039       124
                     30               Sigma               15/05/2005   15/02/2020       163
                     31             SIPF No.2             01/09/2009   31/12/2022        30
                     32        Spazio Industriale         29/12/2005   31/12/2020       372
                     33        Sviluppo Territorio        28/11/2008   31/12/2021        19
                     34                 Tau               20/11/2007   19/11/2017        71
                     35               Theta               18/12/2006   02/08/2036       190
                     36            Trentino RE            15/03/2007   31/12/2037        59
                     37               Venere              29/12/2011   31/12/2016        63

                                                                                                                               23
IDeA FIMIT sgr
                    Our Trophy assets: Milan

>   Trophy assets

                                               Address
                                               Via S. Radegonda 3/10 – Milan

                                               Other information
                                               Main use: Retail
                                               Gross area: 49.675 sqm
                                               Main tenant: La Rinascente

                                               Address
                                               Piazza Cordusio - Milan

                                               Other information
                                               Main use: Office
                                               Gross area: 37.152 sqm
                                               Main tenant: Unicredit Real Estate

                                                                                    24
IDeA FIMIT sgr
                    Milan (2)

>   Trophy assets

                                     Address
                                     Piazza Cavour, 2 – Milan

                                     Other information
                                     Main use: Office
                                     Gross area: 19.092 sqm
                                     Main tenant: Credit Agricole - The Carlyle Group

                                     Address
                                     Via Tortona 37 – Milan

                                     Other information
                                     Main use: Labs
                                     Gross area: 13.839 sqm

                                                                                        25
IDeA FIMIT sgr
                    Milan (3)

>   Trophy assets

                                     Address
                                     Via Verdi, 7 Angolo Via Boito, 10 – Milan

                                     Other information
                                     Main use: Office
                                     Gross area: 3.688 sqm
                                     Main tenant: Unicredit Real Estate

                                     Address
                                     Via Martiri Di Cefalonia, 67 - San Donato Milanese

                                     Other information
                                     Main use: Office
                                     Gross area: 38.254 sqm
                                     Main tenant: ENI Group - Credito Bergamasco

                                                                                          26
IDeA FIMIT sgr
                    Milan (4)

>   Trophy assets

                                     Address
                                     Via Verdi 9, 11, 13 - Via Boito - Via Dell'Orso – Milan

                                     Other information
                                     Main use: Office
                                     Gross area: 19.850 sqm
                                     Main tenant: Cariplo pension fund

                                     Address
                                     Piazza Boldrini, 1 – Milan

                                     Other information
                                     Main use: Office
                                     Gross area: 37.613 sqm
                                     Main tenant: Eni Group

                                                                                               27
IDeA FIMIT sgr
                    Rome

>   Trophy assets

                                     Address
                                     Piazzale Enrico Mattei, 1 - Rome

                                     Other information
                                     Main use: Office
                                     Gross area: 37.167 sqm
                                     Main tenant: Eni Group

                                                     Address
                                                     Piazza Kennedy, 20 - Rome

                                                     Other information
                                                     Main use: Office
                                                     Gross area: 40.516 sqm
                                                     Main tenant: Ministry of Education

                                                                                          28
IDeA FIMIT sgr
                    Rome (2)

>   Trophy assets

                                     Address
                                     Via Cavour 5 / Via F. Turati 38/40 - Rome

                                     Other information
                                     Main use: Office
                                     Gross area: 17.702 sqm
                                     Main tenant: Internal Affairs Ministry

                                     Address
                                     Via Flaminia N. 133-135-137 - Rome

                                     Other information
                                     Main use: Office
                                     Gross area: 6.067 sqm
                                     Main tenant: Service companies

                                                                                 29
IDeA FIMIT sgr
                    Rome (3)

>   Trophy assets

                                                     Address
                                                     Da Vinci Center - Rome

                                                     Other information
                                                     Main use: Office Development
                                                     Gross area: 8.034 sqm
                                                     Main tenant: American Express

                                     Address
                                     Via Romagna, 17 – Rome

                                     Other information
                                     Main use: Bank branches
                                     Gross area: 2.613 sqm
                                     Main tenant: Banca Marche

                                                                                     30
IDeA FIMIT sgr
                    Florence

>   Trophy assets

                                     Address
                                     Piazza Della Libertà 6 - Via Lorenzo Il Magnifico 1/17
                                     - Florence
                                     Other information
                                     Main use: Office
                                     Gross area: 23.446 sqm
                                     Main tenant: Ca.Ri. Di Lucca, Pisa E Livorno and
                                     other financial companies

                                     Address
                                     Via Dei Vecchietti 11 - Florence
                                     Other information
                                     Main use: Office
                                     Gross area: 6.385 sqm
                                     Main tenant: Unicredit Real Estate

                                                                                              31
IDeA FIMIT sgr
                    Naples and Trento

>   Trophy assets

                                                  Address
                                                  Via Toledo 185 – Naples
                                                  Other information
                                                  Main use: Office
                                                  Gross area: 10.363 sqm
                                                  Main tenant: Intesa Sanpaolo

                                        Address
                                        Via Galileo Galilei 1 – Trento
                                        Other information
                                        Main use: Office
                                        Gross area: 6.666 sqm
                                        Main tenant: Unicredit Real Estate

                                                                                 32
IDeA FIMIT sgr
                    Cologne

>   Trophy assets
                                     Address
                                     Deutsche Bank Campus - Cologne

                                     Other information
                                     Main use: Office
                                     Gross area: 23.766 sqm
                                     Main tenant: Deutsche Bank

                                                                      33
www.ideafimit.it

IDeA FIMIT sgr
Via Mercadante 18 00198 Roma
T. (+39) 06 681631 F. (+39) 06 68192090
Via Brera 21 20121 Milano
T. (+39) 02 725171 F. (+39) 02 72021939
You can also read