Northstar Realty Europe — Investor Presentation (March 2016)
18 slides from Northstar Realty Europe's investor presentation, Mar 14, 2016
Slide 1: Corporate Presentation
©2016 NorthStar Realty Europe Corp. ©2016 NorthStar Realty Europe Corp. Corporate Presentation March 14, 2016 Exhibit 99.1
Slide 2: Forward Looking Statements
©2016 NorthStar Realty Europe Corp. Forward Looking Statements 2 This presentation may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exc
Slide 3: Overview
©2016 NorthStar Realty Europe Corp. Overview(1) 3 • NorthStar Realty Europe Corp. (NYSE:NRE) is a European focused REIT • Focused strategy targeting prime office properties in key cities within Germany, the United Kingdom and France • Compelling market opportunity in Europe • $2.6 billion portfolio
Slide 4: NRE Today
©2016 NorthStar Realty Europe Corp. • Predominantly prime office properties let to blue chip and other creditworthy tenants in key European cities • The Core Portfolio comprises primarily office properties in Germany, the U.K. and France representing 76% of the portfolio by value (“Core Portfolio”)
Slide 5: Evolution of NRE
©2016 NorthStar Realty Europe Corp. Evolution of NRE(3) 5 2014 Q1 2015 Q4 2015 – Q1 2016 Q1 2014: NorthStar Realty Finance Corp. (NYSE: NRF) explores opportunities in the European markets Q3 2014: Dukes Court (Woking, U.K.) acquired in Sep-2014 for $95 million (at cost) Q4 2014: Signed binding contr
Slide 6: Our Strategy
©2016 NorthStar Realty Europe Corp. Our Strategy 6 1 2 3 4 NRE’s primary objective is to offer investors a stable and recurring income stream supplemented by capital growth over time Utilize established local networks to source properties that are capable of generating stable and recurring levels of
Slide 7: Significant Progress since Acquisition
©2016 NorthStar Realty Europe Corp. $1.7 bn $1.9 bn Purchase Price Market Value (31 Dec 2015) Significant Progress since Acquisition(4) 7 Core Portfolio: Income At Acquisition December 2015 Occupancy 93% 95% WALT 7.1 years 7.4 years Rental Income Growth + 5% Core Portfolio: Value + 16% • Asset Manag
Slide 8: Case Study, Condor House, London
©2016 NorthStar Realty Europe Corp. Case Study(5) Condor House, London 8 Location City of London, UK Area (sqm) 11,356 Occupancy 100% Tenancy Multi-Tenant • Pro-active management: 3,350 sqm vacated in December 2015 and leased to existing tenants from January 2016 (approx. 20% above in place rent) 20
Slide 9: Case Study, Avenue Marceau, Paris
©2016 NorthStar Realty Europe Corp. Acquisition Dec-15 Case Study(6) Avenue Marceau, Paris 9 Location Paris, France Area (sqm) 3,806 Occupancy 72% Tenancy Multi-Tenant • Existing tenant expansion and relocation into a newly refurbished space for 612 sqm • New office tenant procured for 943 sqm • Prê
Slide 10: European Economic Update
©2016 NorthStar Realty Europe Corp. European Economic Update(7) • EU GDP growth of 1.9% in 2015 and expected to remain at 1.9% in 2016, rising to 2.0% in 2017 • Decreasing unemployment rate in the EU (9.5% in 2015 vs. 10.2% in 2014) and increase in real disposable incomes • Slowdown in emerging mark
Slide 11: European Real Estate Market Update
©2016 NorthStar Realty Europe Corp. European Real Estate Market Update(8) • 2015 investment volumes of €273 billion, 6% above the previous record set in 2007 • U.K. remains dominant (35% of investments) with investments starting to shift towards the continent • Limited supply and improving tenant de
Slide 12: European Market vs. US
©2016 NorthStar Realty Europe Corp. 0 2 4 6 8 10 12 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 London Paris Frankfurt Boston CBD Chicago District of Columbia LA (Westside) New York (Midtown) European Market vs. US(9) 12 Prime Office Yields in Europe are Lower and more Stable than in The
Slide 13: German Market Update
©2016 NorthStar Realty Europe Corp. German Market Update(10) • Strong office leasing activity with a 21% increase in YoY take-up • Office rental index up by 3.0% in 2015 • Vacancy rate in the top 7 cities down from 7.5% to 6.5% in 2015 • Increased investment activity 35% YoY with declining prime yie
Slide 14: U.K. Market Update
©2016 NorthStar Realty Europe Corp. U.K. Market Update(11) • Central London continues to benefit from the out- performance of the services sector driving rental growth of 6.5% YoY • Prime office yields in London are currently at historical low levels – Prime yields in the South-East region/M25 are 1
Slide 15: French Market Update
©2016 NorthStar Realty Europe Corp. French Market Update(12) • Stable occupancy and constant 2015 take-up following a very strong 2014 • Greater Paris represents 76% of total French CRE investments in 2015 and posted a 7.0% YoY increase, closing at just under the record levels in 2007 • The expected
Slide 16: Appendix: Management Team & Fee Structure
©2016 NorthStar Realty Europe Corp. • NRE is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc. (NYSE: NSAM) • NSAM has $38 billion of assets under management • Dedicated executive team – 34 professionals located in NorthStar European offices in London and Luxemb
Slide 17: Endnotes: Overview
©2016 NorthStar Realty Europe Corp. 1. Overview a. Market Value = independent third-party appraisal as of December 31, 2015 performed by Cushman & Wakefield LLP in accordance with the current U.K. and Global edition of the Royal Institution of Chartered Surveyors' (RICS) Valuation – Professional Sta
Slide 18: Endnotes: Strategy and Market Updates
©2016 NorthStar Realty Europe Corp. 8. Strategy – European Real Estate Market Update: a. German Government Bond Yield: 0.194 (08/03/2016) – 0.629 (31/12/2015) - Bloomberg b. U.K. Government Bond Yield: 1.409 (08/03/2016) – 1.960 (31/12/2015) - Bloomberg c. French Government Bond Yield: 0.596 (08/03/
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