Slide 1: Results FY 2021
Results FY 2021 10 February 2022
Slide 2: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 2
Slide 3: Key Messages
Key Messages • DRPS 2021 at € 1.88 per share, above guidance of € 1.80 – 1.85 due to strong rent collection • Proposed dividend 2021 € 1.10 per share, vs. € 0.50 for 2020 • Stable Benelux property valuations in H2 2021, LTV down to 41% from 47% FY 2020 • Two Full Service Centers completed, deliverin
Slide 4: Highlights FY 2021
Highlights FY 2021 FY 2020 FY 2021 Change Direct result per share (€) 2.01 1.88 (0.13) Indirect result per share (€) (6.66) (7.52) (0.86) Total result per share (€) (4.65) (5.64) (0.99) FY 2020 FY 2021 Change EPRA NTA per share (€) 27.74 21.54 (6.20) Net LTV 46.7% 41.0% -5.7pp NPS (Benelux) +4 +25 +
Slide 5: Highlights FY 2021
Highlights FY 2021 Like-for-like NRI growth positive despite continuing Covid-19 impact Net Rental Income FY 2020 FY 2021 Growth LFL Growth (€ m) Belgium 36.9 42.4 14.9% 15.2% Netherlands 66.9 55.3 (17.3%) (3.5%) Core Portfolio 103.8 97.7 (5.8%) 4.3% France 22.7 22.2 (2.5%) 34.3% Offices Belgium 6.5
Slide 6: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 6
Slide 7: Operations FY 2021
Operations FY 2021 High contract volume in the core portfolio and deals signed above ERV on average Leasing MGR Country # of Contracts¹) vs ERV Occupancy Rate Volume²) Uplift Belgium 84 15.4% (3.4%) 6.2% 97.2% Netherlands 88 11.0% (6.4%) (0.6%) 95.7% Core Portfolio 172 12.9% (4.8%) 2.8% 96.3% France
Slide 8: Growing evidence of strong FSC performance
Growing evidence of strong FSC performance KPI Full Service Center Development Shopping Center # Assets 2 6 9 Mixed Use Percentage 18% 10% 10% MGR Uplift +7.3% (4.7%) (5.9%) MGR vs. ERV +10.5% (1.7%) +4.2% NPS +21 +24 +20 Direct Result 4.8% 5.2% 5.7% Valuation Result 1.2% (3.1%) (2.9%) Total Propert
Slide 9: Strong rent collection in Belgium and NL
Strong rent collection in Belgium and NL Footfall shows strong recovery in second half of 2021 in all countries Footfall growth versus same period last year, 2021 Rent collection rates FY 20211) 700 97% 98% 97% 91% 500 300 100 Belgium France Netherlands Group -100 4 8 12 16 20 24 28 32 36 40 44 48 5
Slide 10: Rent collection for FY 2021
Rent collection for FY 2021 Invoiced rent for FY 2021 Breakdown open payments Provisioned 30% Received 94% 6% Open Collectable 11% 59% Discount As of 4 February 2022 and relating to assets held in portfolio at 31 December 2021 only 10
Slide 11: Rent collection & assessment of Covid-19
Rent collection & assessment of Covid-19 € 185.8m -€ 174.0m -€ 10.6m -€ 7.0m € 4.8m -€ 3.6m € 1.2m Invoiced FY 2021 Cash Discounts Under Expected credit loss To be collected (incl. VAT) collected agreed negotiation FY 2021 Relating to assets held in portfolio at 31 December 2021 11
Slide 12: Benelux update
Benelux update Belgium • 84 retail deals signed 6.2% above ERV on average and 9 office deals, examples • Belle-Île: Kusmi Tea, Only, Jack & Jones, Maisons du Monde • Les Bastions: Jysk, Dunkin Donuts, Hubside Store • Nivelles: IKKS, Pitaya, Oil & Vinegar, Le Palais des Thés • Ring Shopping: Superdry
Slide 13: Direct result: impacted by disposals
Direct result: impacted by disposals Excluding disposal impact, strong Direct Result growth mostly driven by smaller Covid impact -€ 10.0m € 92.9m -€ 11.7m +€ 5.6m € 2.5m -€ 0.3m € 88.5m € 1.5m € 0.1m € 3.8m € 1.7m € 82.9m -€ 2.0m Actuals Disposals1) Interest Actuals 2020 NRI NRI NRI General Interes
Slide 14: Cost efficiency
Cost efficiency Cost Reduction Efforts Status Phase-out France Closed French Head-office per January 2022, last two assets managed externally Changing Headquarters Starting 2022 / 2023 Aligning staff with smaller asset base FTE reduction at Holding level LifeCentral phase 2 (growth phase) should res
Slide 15: Outlook 2022
Outlook 2022 Outlook 2022 DRPS at € 1.50 – 1.60 (was € 1.40 – 1.50) Direct Result per Share Dividend per Share • Higher than previous trough guidance due to: € € 2.01 1.13 – 1.20 • Higher than previously 1.88 1.10 forecasted Blueprint ERVs 1.50 – 1.60 • Cost Savings • Higher trough LTV • Proposed Di
Slide 16: DRPS Growth 2023 – 2026 Explained
DRPS Growth 2023 – 2026 Explained Expected annual DRPS Growth 2023 – 2026 % 5.9% • The growth 2023 – 2026 comes from multiple drivers • Leasing contracts indexed annually with inflation, we use 2.0% in our forecasts • Majority of package deals with negative MGR impact done in 2020 and 2021 3.7% 0.2%
Slide 17: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 17
Slide 18: LifeCentral progress 2021
LifeCentral progress 2021 • Two assets now qualified as Full Service Centers • Four ongoing transformations and two to start within 12 months • Signed package deal with Albron for seven F&B units in two of our in-house developed F&B concepts • Finalized Health cluster in Presikhaaf • Opened every.de
Slide 19: Presikhaaf: The first finalized Full Service Center
Presikhaaf: The first finalized Full Service Center A Full Service Center with a broad convenience offering, combined with a Health Cluster, F&B, The Point (service hub), and a gym Renovation started already in 2016 and during last two years transformed into an FSC with addition of F&B, Gym, Health
Slide 20: Vier Meren: Construction in progress
Vier Meren: Construction in progress A Full Service Center with the right retail balance and extensive mixed use offerring, focused on F&B and Leisure • Progress so far: • Construction works started in January 2022 and expected to • Design finalized and all permits received finish Q2 2023 • Movement
Slide 21: De Koperwiek in transition to a Full Service Center
De Koperwiek in transition to a Full Service Center A Full Service Center with a broad convenience offering, combined with extensive F&B offering and a gym • Construction works ongoing since 2017 • Main items: • Phase 1: Optimize the routing and add 280 free parking spaces • Phase 2: Add F&B-square,
Slide 22: FSCs: the one place helping people combine their daily needs
Foto toevoegen FSCs: the one place helping people combine their daily needs Full Service Centers are a combination of efficiency, experience and service Tangible Intangible • Traditional retail with focus on daily groceries, household goods • Consumer Services like The Point and Last-mile delivery a
Slide 23: Introduced FSC scorecard
Introduced FSC scorecard • To assess our transformations, we developed a scoring tool, the FSC score • As each FSC will be different there is no clear cut- off when an FSC is ready • With the FSC score we created this cut-off: as soon as an asset has 100 points it is an FSC • Points are given for ea
Slide 24: FSC Score Example
FSC Score Example 114 8 16 4 24 36 8 -8 26 12 0 14 Mixed Use Clusters Facilities Services Hygiene Current Mixed Use Clusters Facilities Services Hygiene Post Factors FSC Score Factors Transformation FSC Score 7% Mixed Use, • No clusters • The Point • Flow • Wayfinding 17% Mixed Use • Every.deli • EV
Slide 25: Yield Compression after LifeCentral Transformations
Yield Compression after LifeCentral Transformations As presented in our 2020 Strategic Review… … we expect yield compression in our core portfolio1) -60bps 6.1% 5.5% Current NIY Expected Post-Transformation NIY • Our belief is that transforming our assets to Full Service Centers will lead to yield c
Slide 26: First pieces of evidence for FSC yield compression
First pieces of evidence for FSC yield compression Yield compression since start of FSC Transformation bps Vier Meren -66 Ring Shopping Kortrijk -27 Sterrenburg -23 Kronenburg -17 Shopping Belle-Île -15 Presikhaaf -11 26
Slide 27: Residential opportunity in our Benelux portfolio
Residential opportunity in our Benelux portfolio Nivelles Residential profit € 1.60-1.85/sh Our portfolio in the Benelux contains the opportunity to develop between 1,600 and 2,100 units on 10 locations. We expect Kronenburg +0.3% to +1.0% unlevered IRR impact on project level. We are Waterloo activ
Slide 28: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 28
Slide 29: Revaluations
Revaluations Valuations are stabilizing for our core portfolio Value (€ m) Revaluation H2 2021 EPRA NIY (%) H1 2021 FY 2021 €m % H1 2021 FY 2021 Belgium 826 832 2.3 0.3% 5.6% 5.7% Netherlands 840 843 (4.6) (0.5%) 6.7% 6.5% Core Portfolio 1,666 1,675 (2.3) (0.1%) 6.1% 6.1% France 679 170 (7.2) (4.0%)
Slide 30: The Netherlands: realistic valuations
The Netherlands: realistic valuations Annual Capital Growth 2017 - 2021 Cumulative Capital Growth1) 2017 - 2021 0.2% 0.0% -1.7% -3.9% -3.2% -4.1% -5.8% -8.7% -10.5% -17.7% -23.1% -41.6% 2017 2018 2019 2020 20212) MSCI Retail WH NL NL Capital Capital Growth Growth MSCI Retail NL Capital Growth WH NL
Slide 31: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 31
Slide 32: LTV Development
LTV Development Next step should come from e.g. last two French disposals, retained earnings, residential gains, equity backed acquisitions Net LTV Development Why we target an LTV of 35-40% -6% • Improves our credit profile and provides sustainable access to 47% credit 46% • Reduces our vulnerabili
Slide 33: Debt Profile
Debt Profile Q4 2020 Q4 2021 Covenants Comments Interest bearing debt1) (€) 1,254m 817m Proceeds French disposal used to repay debt Repaid credit facilities with lower-than average interest, maturities in 2022 however, Average cost of debt 1.9% 2.3% bear interest rates above current average cost of
Slide 34: Debt Mix & Expiry Profile
Debt Mix & Expiry Profile Q4 2020 Q4 2021 • On 30 September 2021, the Company received payment for the French disposal. Proceeds 7% 8% were used to reduce debt, freeing up the 4% Group’s revolving credit facilities USPP 14% Bank loans (inl. RCF) • During 2021, Wereldhave has obtained € 202m 36% € 1,
Slide 35: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 35
Slide 36: Continued ESG leadership position
Continued ESG leadership position GRESB number 2 listed European Real Estate Companies B B A- B 69 82 82 82 90 91 93 91 C C C 36
Slide 37: Clear and ambitious ESG strategy
Clear and ambitious ESG strategy Our main commitments 1. Maintain GRESB 5-star rating 2. Reduce carbon emissions with 30% by 2030, and Paris Proof by 2045 3. Improve adaptation to heat stress and extreme rain showers 4. Increase our local impact with communities (1% NRI-eq) Aligned with the UN SDGs
Slide 38: Carbon emissions
Paris Proof roadmap example – Sterrenburg Dordrecht Effect main measures vs 2030 + Paris Proof targets 1400000 Roof insulation, LED lighting and district 1200000 heating 1000000 Installation of first solar panels Paris Proof Roadmaps Carbon emissions 800000 • Reduce energy demand Additional solar •
Slide 39: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 39
Slide 40: Delivering on management agenda 2020-2022
Delivering on management agenda 2020-2022 Focus on Target 2020-2022 Progress 07/21 02/22 Phase out France Phase out France Divestment program NL / BE Dispose assets with book value of € 225m - € 275m Restructuring balance sheet Lower LTV to 30-40% FSC concepts, for e.g. entertainment, F&B and fashio
Slide 41: Time for new ambitions
Time for new ambitions Focus on Target 2022-2024 Focus on earnings & dividend growth 4-6% CAGR as of 2023 Focus on Total Return Exceed 8% annualized Total Return (Levered) Successful FSC transformation Transformed 9 assets to FSC and started 4 additional transformations ESG Maintain GRESB 5 star rat
Slide 42: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Valuations 5. Capital Allocation & Financing 6. ESG 7. Management Agenda Appendices 42
Slide 43: Introduction
Introduction Company Profile December 2021 Key Facts Number of retail assets 22 Average size 27,000 m² Number of shopping center 88.3 m visitors (FY 2021) Net loan-to-value ratio 41 % Occupancy shopping centers 96.2 % 9 EPRA NIY shopping centers 6.0 % WALT1) 5.2 years Development pipeline2) € 92 m 6
Slide 44: Portfolio Breakdown by value
Introduction Company Profile December 2021 Portfolio Breakdown by value Portfolio Breakdown by value Offices 5% Netherlands 43% Belgium € 1.9bn 48% € 1.9bn Retail Assets 95% France 9% 44
Slide 45: LifeCentral CAPEX
LifeCentral CAPEX Investments only done in Total LifeCentral investments1) in NL and BE, excl. FR NL & BE assets with IRRs above threshold of 6.0% € m, 2022-2025 85 76 77 74 22 48 38 74 63 38 29 Already 2022 2023 2024 2025 Invested Spent Committed Uncommitted 45 1) Including Maintenance, Customer Ex
Slide 46: Current LifeCentral Transformation projects
Current LifeCentral Transformation projects Actual Estimated > 2022 Total Unlevered Planned (In € m) Costs to capex Estimate to Pre-let Rate Investment IRR Delivery date 2022 Complete Tilburg 18 7 11 - 7% 36% 2022 Sterrenburg 24 10 14 - 6% 97% 2022 Ring Shopping Kortrijk 12 4 8 - 7% n.a. 2022 Vier M
Slide 47: Tenant mix
Tenant mix Contract rent by category Homeware & Services Other Household 1.2% 1.4% Top 10 Tenants % of annualized rent 10.1% Ahold Delhaize 5.7 % Sport Fashion & 2.5% Accessoires 30.5% C&A 2.9 % A.S. Watson Group 2.8 % Health & Beauty 11.4% HEMA 2.3 % Jumbo 2.1 % Special Goods & Others Carrefour 2.1
Slide 48: Like-for-like NRI growth
Like-for-like NRI growth LFL NRI growth (% yoy) 34.3% 23.2% 12.5%15.1% 2.7% 1.9% 2.1% 4.3% 6.0% 2.3% -3.5% -12.0%-9.4% -19.1% -19.4% -21.0% -23.8% -28.7% -39.7% -50.7% Belgium France Netherlands Shopping centres H1 2020 FY 2020 H1 2021 FY 2021 Indexation FY 2021 48
Slide 49: Occupancy rates
Occupancy rates EPRA Occupancy rate Shopping Centers 97.2% 96.2% 96.4% 96.6% 96.2% 96.0% 95.7% 94.7% 94.9% 94.8% 95.0% 94.9% 94.4% 93.5% 92.8% 90.6% Belgium France Netherlands Shopping centers H1 2020 FY 2020 H1 2021 FY 2021 49
Slide 50: Footfall
Footfall Change in visitors versus the same period previous year (%) 17.4%19.0% 11.3% 1.6% -3.1% -6.7% -13.6% -12.2% -12.6% -13.2% -14.7% -16.5% -17.7% -17.4% -22.7% -22.8% -28.0% -30.1% 0.4% Belgium France Netherlands Shopping centres June 2020* FY 2020 H1 2021 FY 2021 Market 2021 * For 2020: June
Slide 51: Breakdown of Valuation Results H2 2021
Breakdown of Valuation Results H2 2021 Rent vs Yield Belgium 0.4% 0.3% -0.1% Netherlands -0.5% -2.7% 2.2% Core portfolio -0.1% -1.2% 1.1% France -4.0% -1.0% -3.0% Offices Belgium 0.9% 0.9% Total -0.4% -1.2% 0.8% Yield shift Market rent & other 51
Slide 52: EPRA NTA
EPRA NTA EPRA NTA declined mainly due to non-core disposals and Dutch transfer tax increase EPRA NTA Bridge: YE 2020 to YE 2021 (€ per share) 1.88 -7.52 27.74 -0.50 -0.13 0.07 21.54 EPRA NTA Direct result Indirect result Dividend Change in Adjustments fair value EPRA NTA 2020 non-controlling interes
Slide 53: Reconciliation of EPRA Value metrics FY 2021
Reconciliation of EPRA Value metrics FY 2021 (€ per share) 2.38 23.93 -2.38 21.60 -0.05 0.06 -0.71 -0.01 21.54 20.89 IFRS NAV Fair value RETT EPRA NRV Exclude RETT Exclude EPRA NTA Exclude NTA Fair value of EPRA NDV FY 2021 financial FY 2021 Intangible FY 2021 adjustments fixed interest FY 2021 inst
Slide 54: Integrated part of transforming our assets into Full Service Centers
Integrated part of transforming our assets into Full Service Centers Ring Shopping Kortrijk: Cityplaza & Winkelhof: Shopping 1 Genk: Adding planting to improve atmosphere Switching to >800 LEDs in the 1.765 solar panels installed, 450 kWp capacity. and BREEAM score. Solar panels parking garages save
Slide 55: Integrated part of daily center management
Integrated part of daily center management Winkelhof, Presikhaaf: Nivelles: 6 Belgian centers: Longest table event where visitors were Offered visitors re-usuable and Hosted well-visited workshops in the galleries invited to share a lunch in the national artistic gift wrapping for a € 2 with exhibit