Wereldhave N.v. · EURONEXT:WHA
Wereldhave — H1 2017 Earnings Presentation
50 slides from Wereldhave's earnings presentation, 2017
Slide 1: Results H1 2017
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Slide 2: Company Profile
COMPANY PROFILE CONVENIENCE SHOPPING CENTRES IN NORTH-WEST EUROPE GEOGRAPHICAL OVERVIEW KEY FACTS # of shopping centres 30 Average size 27,000m² # of shopping centre visitors (H1-17) 73m Loan to value ratio1 38.9% Occupancy shopping centres 95.4% EPRA NIY shopping centres 5.0% 1 WALT2 5.0 years Deve
Slide 3: Highlights H1 2017
HIGHLIGHTS H1 2017 H1 2016 H1 2017 ∆ / change Direct result p/s 1.77 1.72 (2.8%) Indirect result p/s -1.68 -0.03 EPRA NAV 50.53 51.58 2.1% Dividend (Interim) 1.54 1.54 0.0% LTV 39.5% 38.9% -60bps 2017 ▪ Outlook direct result narrowed to € 3.40-3.45 (previously €3.40-3.50; 2016: € 3.45) ▪ Annual divi
Slide 4: Highlights H1 2017
HIGHLIGHTS H1 2017 Net rental income (€m) H1 2016 H1 2017 Growth LFL Growth Belgium 19.4 19.3 (0.5%) (1.0%) Finland 13.5 13.9 3.0% 7.6% France 22.9 21.8 (4.8%) (5.1%) Netherlands 42.2 40.4 (4.3%) 0.8% Shopping centres 98.0 95.4 (2.7%) 0.0% Offices Belgium 4.4 3.9 (11.4%) (6.6%) Total portfolio 102.4
Slide 5: Operational Performance
OPERATIONAL PERFORMANCE
Slide 6: Leasing Performance
LEASING PERFORMANCE TOWARDS A BETTER BALANCE BETWEEN OCCUPANCY AND RENT LEVELS Leasing Occupancy LFL NRI # of contracts volume MGR uplift rate growth Belgium 40 6.7% 2.1% 95.7% -1.0% Finland 33 9.1% -6.5% 96.3% 7.6% France 26 3.8% -7.4% 93.3% -5.1% Netherlands 124 11.7% -4.9% 96.2% 0.8% Shopping cen
Slide 7: LFL NRI Growth & Occupancy
LFL NRI GROWTH & OCCUPANCY POSITIVE IN THE NETHERLANDS & FINLAND, NEGATIVE IN FRANCE & BELGIUM 7.6% H2 2015 H1 2016 1.6% 0.8% LFL NRI € 0.6m 0.3% 0.2% 0.8% 0.0% 0.8% H2 2016 growth -1.0% H1 2017 (% yoy) -5.1% Index H1 2017 Belgium Finland France Netherlands Shopping centres € 1.5m 96.3% 96.2% H2 201
Slide 8: Visitors & Tenant Sales
VISITORS & TENANT SALES OUTPERFORMING IN ALL COUNTRIES EXCEPT FINLAND 4.1% Q3 2016 CHANGE IN 2.7% € 0.6m Q4 2016 1.4% VISITORS 0.8% 0.8% 0.2% 0.2% Q1 2017 H1 2017 Q2 2017 -0.9% (12M) -1.4% market H1 2017* -2.5% Belgium Finland France Netherlands Total € 0.6m € 1.5m 1.7% 0.5% 0.1% n.a. Last 12 months
Slide 9: Sustainability Achievements
SUSTAINABILITY ACHIEVEMENTS REDUCE ENVIRONMENTAL IMPACT, INCREASE SOCIAL IMPACT & FOCUS ON LONG-TERM VALUE CREATION GRESB PARTICIPANT DJSI - EUROPE CARBON DISCLOSURE PROJECT 2013-2016 2013-2016 2012-2016 BREEAM VERY GOOD OR HIGHER SATISFACTION TRANSPARENCY BENCHMARK 67% of shopping centres Our retai
Slide 10: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS H1 2017: TAKE ACTION ON CLIMATE CHANGE & INCREASE LOCAL SOCIAL IMPACT Opening solar roof with 560 panels Eggert Shopping Centre L’amazon: running against breast cancer gathered €71,000 | Le Havre 1,000 MWh solar energy produced on site Estimated energy value € 75k € 665k in
Slide 11: Financial Performance H1 2017
FINANCIAL PERFORMANCE H1 2017
Slide 12: Direct Result H1 2017
DIRECT RESULT H1 2017 DIRECT RESULT BRIDGE (IN €M) €-2.5m 77.7 -1.5 -1.1 1.2 75.2 -1.7 0.8 -0.5 0.3 -1.6 1.6 1 2 Direct result Sale de Heuvel One-off Purchase Standing One-off Savings due to Basilix / Interest costs Tax Direct result H1 2016 / Pathe / indemnities Hudson’s portfolio restructuring res
Slide 13: NRI Result H1 (in €m)
NRI RESULT H1 (IN €M) NRI BRIDGE (IN €M) € -3,2m 102,4 -1,5 -0,2 -1,1 1,2 -1,5 99,2 1 NRI H1 2016 Sale de Heuvel / One-off Purchase LFL Other NRI H1 2017 Pathe / Oosterheem indemnities 2016 Hudson& Hema / Stadshagen 1 Main other movements due to Adjustments of impact of development projects in Belgi
Slide 14: Net Asset Value Development
NET ASSET VALUE DEVELOPMENT EPRA NAV BRIDGE: H2 2016 TO H1 2017 (IN € PER SHARE) 1.72 -0.03 -1.54 0.23 -0.27 51.47 51.58 Q4 2016 Direct result Indirect result dividend Hedge reserve Fair value H1 2017 adjustment of derivatives DIVIDEND PER SHARE IFRS NAV* EPRA NAV* EPRA NNNAV* 55.20 3.08 55.01 2.87
Slide 15: Indirect Result H1 2017
INDIRECT RESULT H1 2017 INDIRECT RESULT BRIDGE (IN €M) I 2 -1,1 -0,9 -2,9 3,1 -0,9 0,5 -0,5 Valuation results Results on disposal Other income & expenses Other financial Taxes on indirect result Actuals H1 2017 income & expenses I € -2.9m valuation results Belgium offices € -2.2m Belgium shopping €
Slide 16: Revaluations H1 2017
REVALUATIONS H1 2017 Re- EPRA Valuation valuation Net Initial Yield Net Initial Yield In €m H1 2017 Q4 2016 H1 2017 H1 2017 Q4 2016 H1 2017 Q4 2016 Belgium 728 696 2.2 5.7% 5.7% 5.5% 5.6% Finland 568 566 -0.4 4.9% 4.9% 4.8% 4.8% France 893 900 -16.7 4.8% 5.1% 4.6% 4.7% Netherlands 1,479 1,517 14.3 5
Slide 17: Revaluations
REVALUATIONS MARKET RENT & YIELD SHIFT 17
Slide 18: Financing
FINANCING
Slide 19: Debt Profile H1 2017
DEBT PROFILE H1 2017 ▪ In February 2017 Wereldhave refinanced its 2014 € 300m Key parameters Q2-17 Q4-16 Covenants Policy syndicated revolving credit facility (RCF) with a new € 300m RCF, Interest bearing debt * € 1,498m € 1,570m pushing the maturity out to February 2022 (from 2019) Average cost of
Slide 20: Country Updates
COUNTRY UPDATES areal — i | WERELDHAVE
Slide 21: Finland
FINLAND RECOVERY IS STARTING TO TAKE SHAPE IN ITIS MARKET SITUATION LFL NET RENT GROWTH ▪ Economy is gradually picking up, unemployment set to decrease 7.6% further ▪ Retail sales are growing on record-high consumer confidence, but to 0.3% a lesser extent in shopping centres ▪ Indexation is expected
Slide 22: Finland
FINLAND RECOVERY IS STARTING TO TAKE SHAPE IN ITIS CINEMA PROJECT 2 June Feel Vegas ▪ Rental contract with Finnkino signed for a 9-cinema screen cinema with a concept unique to Finland ▪ Demolition permit obtained ▪ Building permit application sent (expected Sept 2017) ▪ Construction company signed
Slide 23: France
FRANCE FACING OPERATIONAL HEADWINDS MARKET SITUATION LFL NET RENT GROWTH ▪ Modestly positive economic growth is expected to gradually decrease 1.0% 1.4% unemployment, which still is on a high level. Main uncertainty is how 0.2% structural reform will take shape following election of Macron ▪ Retail
Slide 24: France
FRANCE FACING OPERATIONAL HEADWINDS OUTLOOK FOR FRENCH PORTFOLIO Docks Vauban Undiz ▪ H2 2017 will still see the continued effects of current market situation ▪ Target is to stabilise in 2018 DEVELOPMENT PIPELINE Côté Seine Etam ▪ Saint Sever (Rouen): Le Verrerie area has been taken into the committ
Slide 25: Belgium
BELGIUM STRONG CENTRES SHOW STABILITY MARKET SITUATION LFL NET RENT GROWTH ▪ Gradual economic growth leading to declining unemployment 8.6% ▪ Indexation expected to be at relatively elevated levels 4.9% ▪ Retail sales for physical stores are softening, which makes retailers cautious towards expansio
Slide 26: Belgium
BELGIUM STRONG CENTRES SHOW STABILITY SHOPPING 1 IN GENK Belle-île Hairdis ▪ Free parking for the first 1.5 hours ▪ Visitor amount grew 14% in May & June, with turnover growth at +11% ▪ Occupancy rate improved from 82.0% in Q1 to 83.2% in Q2 DEVELOPMENT PIPELINE Genk Shopping 1 La Bisse ▪ Tournai: t
Slide 27: Netherlands
NETHERLANDS POSITIVE ECONOMIC CONDITIONS TO CONTINUE MARKET SITUATION LFL NET RENT GROWTH ▪ Robust economic expansion results in wages and price increases 0.8% 0.8% ▪ Indexation moving to +0.8% on average (2016: +0.3%) 0.4% ▪ Increasing demand across several sectors, selective on quality ▪ Strong re
Slide 28: Netherlands
NETHERLANDS POSITIVE ECONOMIC CONDITIONS TO CONTINUE NON-CORE ASSET DISPOSALS Presikhaaf ▪ Oosterheem in Zoetermeer Hema ▪ Stadshagen in Zwolle ▪ Rationale: relatively small assets, not dominant in catchment area, below-average demographic growth, close to fully occupied DEVELOPMENT PIPELINE Tilburg
Slide 29: From a Line to a Business Unit Organisation
FROM A LINE TO A BUSINESS UNIT ORGANISATION 4 BUSINESS UNITS WITH EACH 4 SHOPPING CENTRES OLD STRUCTURE NEW STRUCTURE Managing Managing Director Director Support HR LEGAL FINANCE DEV. & MAIN MARKETING INNOVATION Business unit Business unit Business unit Business unit manager manager manager manager
Slide 30: Quick Recovery from Bankruptcies
QUICK RECOVERY FROM BANKRUPTCIES IMPROVED RETAIL CLIMATE ENABLED OCCUPANCY GROWTH YEAR 2011 2012 2013 2014 2015 2016 H1 2017 OCCUPANCY 96.0% 96.5% 97.1% 97.0% 98.0% 97.9% 95.8% 1/1 BANKRUPTIES (0.2%) (3.2%) (3.5%) (2.0%) (2.8%) > (4.0%) <(0.3%) LEASING +0.7% +3.8% +3.4% +3.0% +2.7% >3.0% +0,7% OCCUP
Slide 31: 2017 Blokker Deal
2017 BLOKKER DEAL MUTUAL BENEFICIAL DEAL THAT ENABLES MULTIPLE DEVELOPMENTS DEAL OVERVIEW BLOKKER CONTRACTS PROLONGED SC m² NL 5x 5x 5x 7x 15,940m² CityPlaza 2,120 Koperwiek 1,590 Presikhaaf 4,300 Emiclaer 450 Kronenburg 1,180 Tilburg 1,610 Sterrenburg 1,550 Vier Meren Koningshoek 775 Wereldhave tar
Slide 32: Koningshoek
KONINGSHOEK REFURBISHMENT READY IN H1-2018 SELECTED DEALS 1,500 m2 1,137 m2 3rd supermarket 180 m2 +500 m2 150 m2 increase 308 m2 170 m2 351 m2 FOOD TURNOVER INVESTMENT YIELD-ON-COST SURFACE PRE LET ANCHORED RENT1 €26M 6% 25,000 3X 82% >30% €20M SPENT +5,000 m2 GLA SUPERMARKETS2 Note 1 Turnover rent
Slide 33: Koningshoek
KONINGSHOEK REDEVELOPMENT 2014 - 2018 I Optimised tenant mix 2012 Increased GLA by +5,000m² II 3rd supermarket & new anchor tenants Bankruptcy* or vacancy Optimized ‘100%’ routing III & limited the # of entrees High quality facilities 2017 J IV Free toilets, children playground a m i n Qualitative V
Slide 34: Tilburg Phase I
TILBURG PHASE I REDEVELOPMENT TILBURG CITY SELECTED DEALS TILBURG1 12,400 m2 3,331 m2 2,930 m2 1,238 m2 1,238 m2 1,980 m2 1,034 m2 575 m2 216 m2 181 m2 188 m2 PRE LET TURNOVER INVESTMENT YIELD-ON-COST SURFACE 100% ROUTING RENT² €21M 5% 14,145m2 94% 80% € 4M SPENT Notes 1 Include leases at redevelopm
Slide 35: Strategic Management Agenda
STRATEGIC MANAGEMENT AGENDA New square Koningshoek Maassluis
Slide 36: Robust Retail Platform
ROBUST RETAIL PLATFORM 1 hyper 27,000 All daily 73m 30 €3.8bn or 2-3 m2 needs visitors in assets portfolio super- average available H1 2017 markets size Critical mass in four attractive Convenience shopping criteria Dominance in their catchment retail markets implemented in all our areas shopping ce
Slide 37: Grocery Shopping as Resilient Anchor
GROCERY SHOPPING AS RESILIENT ANCHOR GLOBAL PERCENTAGE: ONLY SHOPPERS WHO SAY THEY SHOP ATTITUDE ABOUT BUYING FRESH AND HOUSEHOLD GOODS MORE OFTEN ONLINE OR IN-STORE BY CATEGORY ONLINE Fresh groceries Furniture, decor, tools Wine and alcoholic beverages Africa/Middle East Packaged grocery food Medic
Slide 38: Our Portfolio Is Strongly Food Anchored
OUR PORTFOLIO IS STRONGLY FOOD ANCHORED 97% OF OUR CENTRES HAVE A SUPERMARKET OR HYPERMARKET Number of centres % Remarks Total centres Wereldhave 30 Of which: Supermarket-anchored 26 87% Shopping I (Genk) Hypermarket-anchored 3 10% Belle-Île (Liège) Mériadeck (Bordeaux) Super/hypermarket-anchored 29
Slide 39: The Transition to Retail Pure-Play
THE TRANSITION TO RETAIL PURE-PLAY OPTIMISATION AND INTERNAL FOCUS PHASE FOCUS 2012 - 2013 ▪ Derisk ▪ Disposal United States, United Kingdom and Spain 2013 - 2014 ▪ Regroup ▪ Building of retail platform ▪ External growth: acquisition French and Dutch portfolios 2014 - 2015 ▪ Growth ▪ Disposal French
Slide 40: Strategic Management Agenda 2017-2019
STRATEGIC MANAGEMENT AGENDA 2017-2019 PROGRESSING WELL STRATEGIC DIRECTION TARGETS 2017-2019 H1 2017 ▪ FI - Respond to ▪ Optimise customer journey ▪ NL + ▪ Drive footfall above market consumer trends ▪ Continue tenant intimacy ▪ BE + ▪ FR + ▪ Improve resilience of tenant base1 ▪ >85% resilient ▪ 81%
Slide 41: Outlook
OUTLOOK NARROWING GUIDANCE ON 2017 DIRECT RESULT PER SHARE DIRECT RESULT (€ PER SHARE) DIVIDEND (€ PER SHARE) 3.45 3.40-3.45 3.01 3.08 3.08 3.23 2.87* 2.87 2.86* 2.97 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2017 ▪ Outlook direct result narrowed to € 3.40-3.45 (previously €3.40-3.50; 2016:
Slide 42: Q&A
Q&A 42
Slide 43: Appendices
APPENDICES Artist impression of the Finnkino Itis 43
Slide 44: Top 10 Properties
TOP 10 PROPERTIES VALUE PER JUNE 2017 1 Helsinki 2 Nieuwegein 3 Strasbourg 4 Rouen 5 Liege € 568m, 103,600m² € 212m, 51,300m² € 200m, 28,500m² € 187m, 37,100m² € 186m, 30,100m² 6 Rouen 7 Nivelles 8 Arnhem 9 H’hugowaard 10 Hoofddorp € 160m, 34,100m² € 149m, 28,500m² € 149m, 37,900m² € 147m, 35,400m²
Slide 45: Top 10 Tenants
TOP 10 TENANTS 20% OF THE RENT ROLL (GRI PER JUNE 2017) 1 Ahold-Delhaize 2 Hennes & Mauritz 3 Blokker 4 C&A 5 Stockmann Food groceries Fashion Household goods Fashion Department store 3.3% 3.0% 2.9% 2.1% 1.9% Excellent Retail Brands 6 AS Watson Group 7 HEMA 8 Excellent Retail 9 10 Metro Jumbo Drugst
Slide 46: Tenant Mix
TENANT MIX Contract rent by category 4% 5% 16% Food 10% Services F&B / Leisure 5% 3% Fashion & assecories Health & Beauty 10% 12% Homeware & household Sport Multimedia & Electronics 6% Department & Variety Shoe & Leatherware 29% 46
Slide 47: Lease Expiry Profile
LEASE EXPIRY PROFILE* 14% 14% 13% 12% 11% 7% 7% 7% 6% 5% 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2025 * Based on GRI total portfolio, excluding indefinite contracts (4% of total) 47
Slide 48: LFL Tenant Sales
LFL TENANT SALES EXCLUDING HYPER/SUPERMARKETS 48
Slide 49: Reconciliation of EPRA NAV
RECONCILIATION OF EPRA NAV 51.58 2.03 2.64 49.55 48.94 IFRS NAV EPRA adjustments EPRA NAV Triple adjustments EPRA NNNAV EPRA adjustments add back the liabilities related to: ▪ Fair value of interest rate derivatives ▪ Deferred tax Triple adjustments subtract the liabilities related to: ▪ Fair value
Slide 50: Contact Details Investor Relations
CONTACT DETAILS INVESTOR RELATIONS Ruud van Maanen ruud.van.maanen@wereldhave.com T +31 20 702 78 43 investor.relations@wereldhave.com www.wereldhave.com 50