Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — FY2014/2015 Earnings Presentation
25 slides from Eurocommercial Properties Nv's earnings presentation, September 2015
Slide 1: Year End Results 2014 / 2015
Year End Results 2014 / 2015
Slide 2: €2.9 billion of prime retail property
€2.9 billion of prime retail property 2
Slide 3: Year end results 2014/2015
Year end results 2014/2015 30 June 2015 • Adjusted net asset value: +6.8% to €39.24 per depositary receipt • Property valuations: +4.8% • Direct investment result: +5.5% to €87.4 million (€2.04 per depositary receipt) • Retail sales growth: +2.9% (6 months to June 2015: 4.4%) • Like for like rental
Slide 4: Successful equity raising
Successful equity raising • 9.9% of depositary receipts issued in May 2015 through an accelerated equity offering • Issue price of €38.00, a premium to NAV • Raised a total of €164.5 million to fund property acquisitions and extensions 4
Slide 5: Three acquisitions agreed during the year
Three acquisitions agreed during the year • May 2015: agreement reached with Gruppo Finiper to acquire 50% of Fiordaliso shopping centre in southern Milan for €135 million Due to complete by the end of October 2015 • December 2014: agreement signed with Gruppo PAM to acquire their hypermarket and ga
Slide 6: Rental growth
Rental growth 12 months to June 2015 Like for like Number of relettings % of total leases Average rental uplift on rental growth and renewals relet and renewed relettings and renewals Overall 1.0% 176 12% 6% France 0.5% 22 4% 15% Italy 1.1% 115 17% 6% Sweden 1.5% 39 17% 4% VACANCIES AND ARREARS MINI
Slide 7: Retail sales growth*
Retail sales growth* To June 2015 7.0% 6.0% 6.0% 5.0% 4.4% 4.6% 3.9% 4.0% 3.6% 2.9% 3.0% 2.2% 2.0% 1.0% 1.0% 0.0% Overall France Italy Sweden 12 months 6 months * Excluding hypermarkets, Systembolaget and extensions. 7
Slide 8: Retail sales growth by sector*
Retail sales growth by sector* 12 months to June 2015 7.0% 6.6% 6.0% 4.8% 5.0% 5.0% 4.0% 3.6% 3.0% 2.4% 2.0% 1.6% 1.3% 1.3% 1.0% 0.8% 0.0% * Excluding extensions. 8
Slide 9: Occupancy cost ratios*
Occupancy cost ratios* June 2015 9.7% 9.8% 10.1% 10.0% 9.6% 8.1% 8.1% 8.0% 8.1% 8.0% 6.0% 4.0% 2.0% 0.0% Overall France Italy Sweden Retail sales incl. VAT Retail sales excl. VAT * Rent plus marketing contributions, service charges and tenant property taxes as a proportion of retail sales. Excluding
Slide 10: Valuations
Valuations June 2015 Valuation growth Net initial yield* Twelve months to Six months to 30 June 2015 30 June 2015 At 30 June 2015 Overall 4.8% 3.2% 5.4% France 5.1% 3.0% 4.8% Italy 4.4% 3.3% 6.0% Sweden 4.8% 3.3% 5.4% * Net initial yield figures are derived by dividing expected net income for the co
Slide 11: Extensions and refurbishments
Extensions and refurbishments June 2015 Estimated Expected net Property Project Timing cost yield on cost FRANCE Chasse Sud, Chasse-sur-Rhône 5,500m2 extension Completion 2016 €9.5 million min. 7% Val Thoiry, Thoiry Refurbishment Underway €5 million Plaine de France, Moisselles Refurbishment Underwa
Slide 12: Funding summary at 30 June 2015
Funding summary at 30 June 2015 Shareholders’ adjusted net equity €1.86 billion Total net borrowings €991 million Average loan term 6 years Loan book hedged for interest exposure 80% Average loan of hedges >8 years Average loan margin 91 bps Average overall interest rate 3.6% Net debt to adjusted ne
Slide 13: Borrowings maturity schedule
Borrowings maturity schedule €m 400 347 350 300 250 209 200 143 150 127 120 90 100 58 44 50 26 0 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24+ 13
Slide 14: France
France 14
Slide 15: France: Performance overview
France Performance overview • Valuation of portfolio up 5.1% since June 2014 • Net initial yield: 4.8% (June 2014: 5.1%) Central Paris property yields averaged 4.0% while suburban centres were 5.1% • Like for like rental growth: 0.5% • Like for like retail sales growth: 1.0% 6 months to June 2015: 2
Slide 16: France: Operational overview
France Operational overview • Acquisition of 50% share of Shopping Etrembières on the eastern edge of Geneva • Refurbishment of Val Thoiry underway; due to finish by the end of 2015 • Extension of Chasse Sud retail park ongoing; due to complete by summer 2016 • Plans to extend Amiens Glisy, Les Atla
Slide 17: Acquisition of Shopping Etrembières
France Acquisition of Shopping Etrembières • Entered into a joint venture partnership with AXA Real Estate through acquisition of 50% stake in Shopping Etrembières • Total cost €43.3 million representing net initial yield of c.5.2% • 8,900m2 gallery anchored by H&M and GO Sport with a 5,500m2 Migros
Slide 18: Italy
Italy 18
Slide 19: Italy: Performance overview
Italy Performance overview • Valuation of portfolio up 4.4% since June 2014 • Net initial yield: 6.0% (June 2014: 6.3%) • Like for like rental growth: 1.1% • Like for like retail sales growth: 3.9% 6 months to June 2015: 6.0% • Occupancy cost ratio: 8.0% 19
Slide 20: Italy: Operational overview
Italy Operational overview • Agreement reached to purchase 50% share of Fiordaliso in southern Milan from Gruppo Finiper • Agreement reached with Gruppo PAM to acquire their 15,800m2 hypermarket and 9,000m2 gallery Acquisition of Fiordaliso shops at I Gigli Hypermarket will reduce to 10,000m2 and be
Slide 21: Acquisition of Fiordaliso, Milan
Italy Acquisition of Fiordaliso, Milan • Agreement reached with Gruppo Finiper to acquire 50% of Fiordaliso, one of the best shopping centres in southern Milan Carosello • Eurocommercial will acquire a 50% share of the centre’s gallery and an adjoining retail park • Total cost €135 million represent
Slide 22: Sweden
Sweden 22
Slide 23: Sweden: Performance overview
Sweden Performance overview • Valuation of portfolio up 4.8% since June 2014 • Net initial yield: 5.4% (June 2014: 5.6%) • Like for like rental growth: 1.5% • Like for like retail sales growth: 3.6% 6 months to June 2015: 4.6% • Occupancy cost ratio: 8.1% 23
Slide 24: Sweden: Operational overview
Sweden Operational overview • Ground works and leasing are well advanced for the 16,000m2 extension of Eurostop in Halmstad • Refurbishment of Bergvik in Karlstad underway; due to complete by the end of 2015 200th Clas Ohlson store opened there last week, part of an active tenant relocation programm
Slide 25: Outlook
Outlook • Pursue good quality, earnings accretive acquisitions in France, Northern Italy and Sweden • Continue extension and refurbishment programme to upgrade existing properties • Take advantage of the low interest rate environment to reduce cost of debt and extend loan maturities 25
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