Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — FY2023 Earnings Presentation
43 slides from Eurocommercial Properties Nv's earnings presentation, Mar 22, 2024
Slide 1: Full Year 2023 Results
Full Year 2023 Results 22 March 2024
Slide 2: Agenda
AGENDA 1 Introductions Luca Lucaroni, Investor Relations Director 2 Results review Evert Jan van Garderen, CEO 3 Portfolio & ESG update Peter Mills, CIO 4 Financial review Roberto Fraticelli, CFO 5 Closing remarks Evert Jan van Garderen, CEO 6 Q&A 2
Slide 3: Results review
Results review Evert Jan van Garderen
Slide 4: The geographical portfolio
The geographical portfolio (% of value) Italy France Sweden Belgium 44% 21% 21% 14% 1 I Gigli, Florence 1 Passage du Havre, Paris 1 Woluwe Shopping, Brussels 1 Hallarna, Halmstad 2 Carosello, Carugate, Milan 2 Val Thoiry, Greater Geneva 2 Bergvik, Karlstad 3 Fiordaliso, Rozzano, Milan 3 Les Atlantes
Slide 5: Solid operational performance in 2023
Solid operational performance in 2023 Retail sales Rental growth Renewals and relettings +5.8% vs 2022 9.7% 2.8% +10.7% vs 2019 (compared to 4.7% for 12 months to December 2022) Rental uplift on renewals and relettings 240 lease transactions Vacancy OCR Rent collection 1.5% 9.5% 99% (same level as a
Slide 6: Like-for-like rental growth
Like-for-like rental growth Like-for-like rental growth Indexation Overall 9.7% 7.9% Belgium 3.4% 3.9% France 5.7% 4.6% Italy 13.5% 10.5% Sweden 9.9% 8.2% Long-term like-for-like rental growth 12.0% 9.7% 10.0% 8.0% 6.0% 4.1% 4.7% 4.0% 2.1% 1.5% 1.0% 1.0% 1.4% 2.0% -0.3% 0.0% -2.0% Jun-14 Jun-15 Jun-
Slide 7: Applicable national indices
Applicable national indices Index 2023 Index 2024 Inflation rate Inflation rate 2023 2024** (forecast) Belgium 4.3% 3.1%* 4.1% 2.9% France 4.7% 6.1% 4.9% 2.4% Italy 11.3% 0.6% 5.7% 1.9% Sweden 10.9% 6.5% 8.5% 3.0% *Indexation estimate **Source: Consensus Forecast 7
Slide 8: Strong retail sales growth across all markets
Strong retail sales growth across all markets Retail sales comparison 2023 vs 2022 and 2019 16.0% 14.5% 14.0% 12.0% 11.5% 10.7% 10.6% 10.0% 9.6% 8.0% 5.8% 5.9% 6.0% 5.0% 5.4% 5.2% 4.0% 2.0% 0.0% TOTAL Belgium France Italy Sweden FY 2023 vs FY 2022 FY 2023 vs FY 2019 8
Slide 9: All sectors showing positive growth
All sectors showing positive growth Retail sector sales comparison FY 2023 vs FY 2022 and FY 2019 160.0% 140.0% 135.9% 128.3% 121.6% 117.5% 116.5% 115.4% 120.0% 109.4% 114.7% 109.4% 109.7% 111.7% 107.1% 104.0% 105.3% 106.0% 102.2% 103.0% 98.2% 97.7% 102.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Fashion
Slide 10: Strong leasing performance in 2023
Strong leasing performance in 2023 Deals signed by sector (as % of total deals) Fashion 36% Health & Beauty 12% 240 Transactions 166 renewals 74 relettings to new tenants 2.8% Gifts & Jewellery 11% F&B 11% Rental uplift on renewals and relettings 6.2% uplift on relettings Telecom & Electrics 10% Hom
Slide 11: Renewals and relettings
Renewals and relettings Strong tenant demand producing positive lease spreads ✓ 240 lease transactions achieving a Number of Average rental % of leases rental uplift of 2.8% on top of renewals and uplift on renewed and indexation relettings renewals and relet (MGR) ✓ 74 lettings to new retailers rel
Slide 12: EPRA vacancies
EPRA vacancies EPRA vacancy rate remains low at 1.5%, ranging between 0.2% and 2.9% EPRA vacancy EPRA vacancy at EPRA vacancy at at 31 Dec 2022 31 Dec 2023 30 Jun 2023 Overall 1.5% 1.5% 1.5% Belgium 1.7% 1.8% 2.1% France 2.9% 2.4% 2.3% Italy 0.6% 0.8% 0.2% Sweden 1.7% 1.8% 2.9% Long term EPRA vacanc
Slide 13: Occupancy cost ratio (OCR)
Occupancy cost ratio (OCR) Low OCRs support sustainable rental income and low vacancy Occupancy cost ratio Overall 9.5% Belgium 14.3% France 10.0% Italy 9.8% Sweden 7.5% Eurocommercial's historically low OCRs 14.0% 12.0% 9.2% 9.5% 10.0% 8.5% 8.9% 8.1% 8.1% 8.2% 8.2% 8.0% 6.0% 4.0% 2.0% Jun-14 Jun-15
Slide 14: Rent collection
Rent collection Full rent collection includes pass through of indexation % of invoiced rent collected 2023 Belgium 99% France 95% Italy 100% Sweden 100% Total 99% 14
Slide 15: Portfolio and ESG update
Portfolio and ESG update Peter Mills, CIO
Slide 16: A well diversified portfolio
A well diversified portfolio 24 shopping centres in 4 countries Geographical (by value) 5 Flagship centres* 45% 19 suburban hypermarket 55% anchored shopping centres* I Gigli/Carosello/Fiordaliso/Woluwe Shopping/ Passage du Havre Fashion & Shoes = 35% Essential and Everyday Retail = 43% Fashion & Sh
Slide 17: Valuations
Valuations Increasing yields impact valuations Net value Valuation Valuation change EPRA yields EPRA yields 31 Dec change From 2023 2022 2023 From 31 December Topped Topped € million 30 June 2023 2022 NIY Up NIY Up Belgium 523 -7.6% -10.2% 4.9% 5.2% 4.6% 4.9% France 802 -1.5% -1.1% 5.7% 5.8% 5.2% 5.
Slide 18: Valuation split
Valuation split 5 dominant low yielding flagships 5 Flagships Net value (€M) 31 December 2023 EPRA net initial yield (%) EPRA topped up yield (%) Woluwe Shopping (Belgium) 1,696 Passage du Havre (France) I Gigli, Carosello, Fiordaliso (45% of the portfolio) 5.4 5.5 (Italy) 19 higher yielding hyperma
Slide 19: Final phase of Valbo project completed
Final phase of Valbo project completed ➢ Phase 1 – Improved masterplan and circulation (completed) ➢ Phase 2 – Refurbishment of malls and common areas (completed) ➢ Phase 3 – 1,000m² extension, 7 shops, renovation of car park and external façade (completed on 28 October 2023) 19
Slide 20: Woluwe Shopping remerchandising
Woluwe Shopping remerchandising First Floor Ground Floor Future Carrefour Refurbished INNO supermarket (12,000m²) (3,000m²) Future C&A (1,455m²) New ZARA (3,300m²) 20
Slide 21: Leasing focus LIFESTYLE
Leasing focus LIFESTYLE A continuation of the rapid growth in lifestyle fashion, sport and fitness. 21
Slide 22: Leasing focus HEALTH & BEAUTY
Leasing focus HEALTH & BEAUTY The health & beauty sector - increasing its representation in all our markets. 22
Slide 23: Leasing focus F&B
Leasing focus F&B F&B - continuing to expand with a range of new brands, concepts and formats. 23
Slide 24: Leasing focus VALUE RETAIL
Leasing focus VALUE RETAIL With household budgets under pressure, the low price/value retail sector continues its expansion. 24
Slide 25: Environmental, social and governance
Environmental, social and governance Recognitions AEX® ESG Index 25
Slide 26: ESG Update
ESG Update 15% reduction in energy consumption during 2023 15 out of 24 shopping centres have Carbon emissions (Scope 1 Climate change risk 75% of ECP shopping centres on-site solar panels, collectively and 2) assessments performed achieved zero waste to landfill generating over 3,985 MWh 24% reduct
Slide 27: ESG update
ESG update Customer Engagement Sustainable finance • Over 13,000 face-to-face interviews across • Eurocommercial’s Green Finance Framework 14 centres underscores sustainability goals • Average score of 8.3 (above target of 7.5) • Extension of three sustainability linked loans • Five green loans in p
Slide 28: Financial review
Financial review Roberto Fraticelli, CFO
Slide 29: Refinancing accomplished for all long-term loans maturing in 2024
Refinancing accomplished for all long-term loans maturing in 2024 • In February 2024, a new 3-year loan of €17.5 million (€8.8 million group share) was signed with Banco BPM to refinance the previous loan on the Fiordaliso retail park in Italy; • In March 2024, the Company extended for a 5-year peri
Slide 30: Financial summary at 31 December 2023
Financial summary at 31 December 2023* (including JV borrowings on a proportional basis) Average term of hedges Average overall interest rate Total net borrowings** (incl. margin) €1.609 billion 5.3 years 3.2% Non-current borrowings maturity and amortisation schedule at year end (€m) (including the
Slide 31: Interest rate hedging
Interest rate hedging Cash-flow hedging 100% 91% 90% 9.00% 90% 82% 80% 79% 85% 81% 7.00% 70% 76% 5.00% 3.57% 3.92% 60% 2.40% 3.00% 50% 1.90% 1.90% 2.00% 2.00% 3.20% 2.90% 40% 2.13% 1.00% -0.54% -0.54% -0.57% 30% -0.20% -1.00% 20% -3.00% 10% 0% -5.00% 31/12/2020 30/06/2021 31/12/2021 30/06/2022 31/12
Slide 32: Financial Position
Financial Position (at 31 December 2023) Financial position Main Highlights (€ million) 12.2023 12.2022 Property Property investments* €3,576 €3,643 EPRA Net initial investment down yield up Net borrowings* €1,553 €1,519 by 2.2% EPRA NTA €2,007 €2,043 EPRA Net initial yield 5.8% 5.5% Borrowings slig
Slide 33: Loan to value ratio at 42.5%
Loan to value ratio at 42.5% Loan to Value ratio versus EPRA Net Initial Yield 60.0% 6.0% 5.8% 5.7% 55.0% 5.5% 5.5% 5.3% 5.1% 50.0% 5.0% 4.9% 5.0% 45.0% 43.9% 43.8% 42.3% 42.5% 41.8% 40.4% 4.5% 40.0% 38.9% 4.0% 35.0% 30.0% 3.5% 31/12/2020 30/06/2021 31/12/2021 30/06/2022 31/12/2022 30/06/2023 31/12/
Slide 34: EPRA Net Tangible Asset (€ per share) EPRA NTA Bridge
EPRA Net Tangible Asset (€ per share) EPRA NTA Bridge *Negative revaluation properties and IRS market value movement 34
Slide 35: ICR and net debt/EBITDA ratio
ICR and net debt/EBITDA ratio 12.0 8.0 11.1 10.3 7.0 10.0 8.9 8.9 6.0 8.0 5.0 6.0 4.1 4.0 3.7 3.7 3.5 3.0 4.0 2.0 2.0 1.0 - - 31/12/2020 31/12/2021 31/12/2022 31/12/2023 Net debt/EBITDA ratio ICR 35
Slide 36: Income Statement
Income Statement (at 31 December 2023) Income statement Main Highlights (€ million) 2023 2022 Limited net interest Rental income* €215.3 €199.3 Rental income expenses increase by increased by €16 €8.2 million thanks to million Net property income* €177.6 €165.4 80% hedging Net interest expenses* €47
Slide 37: Direct Investment Result comparison of 2023 with 2022
Direct Investment Result (DIR) comparison of 2023 with 2022 (€/million) (including JV on a proportional basis) Amounts are in € million and are reported according to proportional consolidation 37
Slide 38: Closing remarks
Closing remarks Evert Jan van Garderen, CEO
Slide 39: Dividend and 2024 direct investment result guidance
Dividend and 2024 direct investment result guidance • Proposed total dividend of €1.70 per share, an increase of 6.25% compared to last year’s dividend • An interim dividend of €0.64 per share was distributed in January 2024 according to our dividend policy; a final dividend of €1.06 per share will
Slide 40: Financial Calendar
Financial Calendar 17 April 2024 – Annual report publication 10 May 2024 – Q1 2024 results 11 June 2024 - Annual General Meeting 30 August 2024 – Half Year 2024 results 8 November 2024 – Q3 2024 results
Slide 41: Q&A
Q&A
Slide 42: Disclaimer/forward-looking statements
Disclaimer/forward-looking statements This presentation does not constitute or form a part of any offer to sell, or any invitation or other solicitation of any offer, to buy or subscribe for any securities in the United States or any other jurisdiction. Some statements in this presentation are 'forw
Slide 43: Head Office and Group Offices
Head Office Group Offices Eurocommercial Properties N.V. Belgium France Italy Sweden De Boelelaan469 Herengracht 7 Rue St Lambert 200 107 rue Saint Lazare Via della Moscova, 3 Kungsgatan 48 1083 1017 HJ BS Amsterdam Amsterdam 1200 Bruxelles 75009 Paris 20121 Milano 111 35 Stockholm www.eurocommercia
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