Slide 1: Full-Year Results 2016
Schiphol, 3 February 2017 FULL-YEAR RESULTS 2016
Slide 2: Financial performance & Operations
Financial performance & Operations OPERATIONS FY 2016 FY 2015 Direct result per share €3.45 €3.23 LFL growth sh. centre portfolio Indirect result per share €(0.95) €(0.88) 100bps > indexation EPRA NAV per share €51.47 €52.10 40bps > indexation Dividend per share € 3.08 €3.01 LTV 39.0% 37.5% Occupanc
Slide 3: Strategy
STRATEGY
Slide 4: On all fronts we have delivered on or above target
On all fronts we have delivered on or above target 2013 2014 2015 2016 360 360 125 LFL Target 160 200 270 180 100 bps Indexation 200 140 100 40 100 90 40 60 98.4% 98.6% 95.3% 96.3% 95.5% 98% 98% Occupancy Target 93.9% 93.8% 93% 93.5% % Excl. FR Total Excl. FR/NL Total Excl. FR/NL Total acquisiti
Slide 5: French and Dutch acquisitions: targets and progress
• Targets at acquisition: French 94.4% • Establish French country team shopping 91% 93% • Stabilize NRI at €46m in 2015 centres • Increase NIY by1 +/- • 20bps in 2016 No inflation, Saint Sever Acquired December • 20bps in 2017 partially under development 2014 Occupancy Occupancy at acquisition 2
Slide 6: Dutch consumer and retail sentiment improving
• Dutch consumer confidence increasing • Unemployment at very low level • Retail sales are bottoming out 20 July 2016 20 October 2016 18 January 2017 “Consumenten geven “Aanhoudende groei “Fors meer hypotheek • House prices increasing strongly meer uit dan trekt arbeidsmarkt in aanvragen in 2016, vo
Slide 7: Finland strategic review and outlook
• Strategic review finalised in 2016 as target price level was not achieved • Challenging macro economic situation Finland • Brexit impacting investment climate • Anttila bankruptcy • Base performance indicators are strong • Occupancy increased from 92.5% in 2015 to 95.7% in 2016 • Footfall increase
Slide 8: Critical mass in four attractive retail markets
1 hyper c26,000 All daily 155m 32 €3.8bn or 2-3 sqm needs visitors assets portfolio super- average available total markets size Critical mass in four attractive Convenience shopping criteria Dominance in their catchment retail markets implemented in all our areas shopping centres Strong €200m €200m
Slide 9: Convenience Shopping Centres
CONVENIENCE SHOPPING CENTRES
Slide 10: Convenience shopping centre characteristics
Prime locations in Between 20,000 and Food anchored Dominant in their regional cities 50,000 sqm catchment areas sqm GLA per shopping centre Average GLA split Catchment area >100,000 inhabitants within 10 min 50,000 drive time Food incl. 28% F&B / 25,965 25% Leisure 7,500 72% Gallery Regional Other
Slide 11: Supermarket anchors and resilience to online
Drives footfall Resilient through the cycle Resilient to online Footfall # per week1 The Netherlands Wereldhave categories in portfolio2 30,000 140 Supermarkets 25,000 130 28% 33% Internet GDP resilient 20,000 120 110 48% 10,000 48% Omnichannel 100 Fashion 5,000 90 24% 19% Internet risk 80 Small Sma
Slide 12: Strategic Management Agenda 2017-2019
STRATEGIC MANAGEMENT AGENDA 2017-2019
Slide 13: Strategic phases 2012-2019
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 offices 2015 - 2016 Integration Integration of French and Dutc
Slide 14: Trends and Wereldhave response
Ageing & Proximity, Shopping Mobile Trends urbanisation time efficiency experience world Wereldhave Regional Easy in, Convenience & Internet resilient response cities easy out social experience tenant mix Realise Ensure Enhance Maintain asset all centres customer leasing rotation refreshed (2018)1 j
Slide 15: Retail environment and lease expiry profile
• Overall retail environment requires agility and Lease expiration profile shopping centres1 flexibility 14% ~30% 13% 12% 11% 10% • Markets in core countries are in different phases: 8% 7% 7% 7% • Netherlands: recovering 6% • Belgium: stable • France: stable • Finland: challenging, stabilising 2017
Slide 16: Organisation optimisation
• Organisation expanded in 2014 -2015 to • Streamlined management team accommodate further growth • CEO liaising directly with Country Directors • Increase of management team and group • Cross border activities allocated to Country functions Directors • Klépierre acquisition doubling our Dutch • Sel
Slide 17: Strategic direction and targets 2017-2019
Strategic direction Targets 2017 - 2019 2016 • FI + Respond to • Optimise customer journey • Drive footfall above • NL + consumer trends • Continue tenant intimacy market • BE +/- • FR +/- • Improve resilience of tenant base1 • >85% resilient • 81% Drive EPS • Increase occupancy • 97% occupancy • 95
Slide 18: Direct result, dividend and outlook
Direct result (€ per share) Dividend (€ per share) Outlook 3.50 - 2017 3.45 3.40 3.23 3.01 3.08 3.08 • Recurring EPS on a positive track 2.871 2.87 2.97 2.861 • Including impact of reorganisation costs (€1.5m) and disposals in H1 2017 (at least €50m) EPS will be in range €3.40 - €3.502 • Dividend pe
Slide 19: Operations
OPERATIONS 19
Slide 20: Stable renewals & relettings; rotations at lower levels
Stable renewals & relettings; rotations at lower levels Belgium Finland France Netherlands Total # contracts 49 88 47 309 493 Relettings ≈+* - + + - Renewals ≈+ -- + ≈ ≈ Rotations + -- +* -- - ≈ -2 +2% +/- 2-5% ++/-- >5% * Excludes Sales Based Rent contracts (i.e. Kinepolis in St Sever) • Belgium: l
Slide 21: Specialty leasing
% of total rent 3% 1.1% 0.9% 31% 37% 0.8% 0.6% 29% 2013 2014 2015 2016 Kiosks Adv Promotions Other • Specialty leasing increasingly important part of leasing- and marketing strategy; 2016 results above budget • Good performance of Online booking tool for Dutch % of GRI retailers introduced in 2016.
Slide 22: Occupancy increasing in all countries
Increasing in all countries Dec 2016 Jun 2016 Dec 2015 Belgium 95.9% 95.1% 94.9% Finland 95.7% 95.3% 92.5% France 94.4% 93.2% 91.1% Netherlands 95.8% 95.2% 95.3% Shopping centres 95.5% 94.8% 93.8% Belgian offices 90.9% 91.9% 93.4% Total 95.3% 94.6% 93.8% • Belgium: +0.8% in H2; Courtrai +4% to 93.4%
Slide 23: Footfall better than market in all countries
Better than market in all countries • Belgium: footfall slowing down but still above -3.3% Belgium -2.4% market-average • Finland: continued above-market increase in footfall, now above 17m 1.0%* Finland 2.3% • France: slightly lower y-o-y but above market- average • Netherlands: 1.8% above market a
Slide 24: Tenant sales better than market
Better than market Dutch retail sales Q4 2016 2016 Fashion 8.5% 1.9% 0.7% Finland Shoe shops 7.6% 2.0% 1.5% Sporting goods 7.8% 2.3% Supermarkets 3.3% 2.5% -1.3% Ahold Delhaize (incl. Bol.com) 6.6% - France -1.0% Plus 3.7% - Market Wereldhave Jumbo 4.0% - Source: CNCC for France, Statistics Finland
Slide 25: Like-for-like rental growth vs indexation
4.9% -2.7% 1.4% 0.4% 1.0% 2.8% 0.4% 2.1% 1.3% 0.4% 0.0% 0.1% Belgium Finland France 0.1% Netherlands Total 0.6% -2.8% indexation Above indexation 25
Slide 26: Average rents by country
BELGIUM FINLAND FRANCE NETHERLANDS • € 355 per sqm • € 308 per sqm • € 516*per sqm • € 262 per sqm average rent average rent average rent average rent Average rents from re-lettings and renewals combined * Includes Primark and Kinepolis leases (large area at relatively low rent per sqm) 26
Slide 27: Netherlands new tenants
Ici Paris at Koningshoek, Maassluis Flying Tiger at Vier Meren Albert Heijn at Eggert, Purmerend 27
Slide 28: France new tenants
JD sports Docks Vauban, Le Havre Rituals at Docks 76, Rouen Spingfield at Meriadeck, Bordeaux 28
Slide 29: Finland kiosks and new tenants
Flormar kiosk at ITIS, Helsinki Nespresso kiosk at ITIS, Helsinki Pasta Box at ITIS, Helsinki Espresso House at ITIS, Helsinki 29
Slide 30: Portfolio
WERELOHAVE
Slide 31: Acquisitions and disposals in 2016
HBC department store, artist’s impression • Acquisition of building for Hudson Bay C (under construction) and Hema department stores in Tilburg’s inner city revitalisation project • Sale of Pathé cinema in Tilburg to tenant in Sept 2016 • Sale of Geldrop, a 4,500 sqm shopping centre in NL in Dec 201
Slide 32: Development pipeline
Total Capex so far Capex spent YoC Pre-let (%) Completion investment 2016 Itis Cinema 20 - - 100% Q4 2018 Tournai, Les Bastions extension 66 24 14 6.0% 2018 Docks Vauban – Primark & Sealing 17 7 7 9.0% 96% 2018 Tilburg (phase 1) 21 2 2 5.0% 100% 2017 Koningshoek 26 12 4 6.0% 69% 2018 Koperwiek 28 4
Slide 33: Development projects photos
Kids plaza at Etten-Leur Les Bastions, Tournai Start redevelopment Presikhaaf, Arnhem 33
Slide 34: Financials
FINANCIALS 34
Slide 35: Net rental income bridge
(IN €M) -11.6 27.7 -1.0 1.7 201.5 184.7 2015 Acquisitions Disposals From/to development & L-f-L rental growth 2016 Other • Acquisitions: full-year impact nine Dutch shopping centres for € 770m in August 2015 • Disposals: French office portfolio for € 401m in Q4 2015, Pathé cinema Tilburg in Q3 2016
Slide 36: Direct result per share bridge
(IN € PER SHARE) 0.69 (0.29) 0.02 (0.03) 0.00 (0.20) 0.00 0.03 3.45 3.23 2015 Acquisitions Disposals From Standing General Interest Share issue Other 2016 development portfolio costs costs 2015 • Main impact from Dutch acquisition and sale of French offices in 2015 • General costs increased moderate
Slide 37: Bankruptcies impact
Netherlands Bankruptcies MGR € 6.9m (7% Gross Rental Income) GRI loss 2016 € 3.5m Signed leases MGR € 3.9m GRI recovered 2016 € 2.1m Finland MGR Anttila € 1.4m (5% Gross Rental Income) GRI loss Anttila 2016 € 0.6m (= 2.0%) France MGR € 2.0m (4% Gross Rental Income) GRI loss € 0.8m Bad debt € 0.4m 37
Slide 38: Indirect result per share
(IN € PER SHARE) Change transfer tax rate Belgium Other valuation result Result on disposal Hedge result Other Total indirect result 0.95 -1.89 -0.94 -0.02 -0.05 0,06 -0.95 • Effect on valuation result of use lower transfer tax for Belgian portfolio: € 0.95 p/s • Positive valuation result in Belgium
Slide 39: NAV per share development
(IN € PER SHARE) 52.10 -0.95 -1.51 3.45 -0.33 0.25 51.47 -1.54 Dec 2015 Final dividend 2015 Interim dividend Direct result Indirect result Hedge reserve Other Dec 2016 2016 IFRS NAV* EPRA NNNAV* Dec 2016: € 49.16 Dec 2016: € 48.32 Dec 2015: € 50.05 Dec 2015: € 50.38 39
Slide 40: Valuation result by country
Result Value EPRA NIY FY 2016 Dec 2016 Dec 2016 (In €m) (In €m) (In %) Belgium 28.3 696 5.6 Finland -58.5 566 4.8 France 27.1 900 4.7 Netherlands -24.6 1,517 5.2 Shopping centres -27.7 3,679 5.1 Belgium offices -1.9 124 6.5 Total portfolio -29.6 3,803 5.1 • Belgium: increase mainly due to use of low
Slide 41: Valuation result yield and market rent
Valuation result Total Belgium 0.0% 4.2% 4.2% Finland -9.4% 0.0% -9.4% France -2.9% 6.0% 3.1% Netherlands -1.7% 0.3% -1.4%* Shopping centres -2.5% 1.8% -0.7% Belgium offices -1.5% 0.0% -1.5% Total portfolio -2.3% 1.6% -0.7% Yield movement Market rent & other • -0.7% valuation result on total portfol
Slide 42: Moody's rating Baa1, LTV and liquidity
AVERAGE FIXED VS LTV COST FLOATING OF DEBT DEBT ≤ 60% 86% vs 14% • Moody’s credit rating (initially obtained in February 39.0% 79% vs 21% 2.2% 2016): Baa1, with a stable outlook (unchanged) 1.9% 37.5% • Increased (floating interest rate) drawings on Revolving Credit Facilities following repayment $
Slide 43: Debt structure and maturity
STABLE DEBT LEVEL, INCREASED AVERAGE MATURITY DECREASED SHARE OF BANK LOANS FROM 5.5 TO 5.1 YEARS (IN €MILLION) Q4 2015 0 Year & amount of maturity 16% USPP 2017 45 € 1,515m Bank loans (incl. RCF) 23% 30 61% 2018 33 Convertible bond 112 2019 547 Q4 2016 0 2020 16% 75 € 1,570m 49% 40 >2020 35% 869 Un
Slide 44: CSR Framework
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Slide 45: Bricks, HR, Partners, Society targets
BRICKS HR PARTNERS SOCIETY • Improve energy • Employee • Create 1000 • Improve retail efficiency by 30% satisfaction scores permanent retail customer (Year: 2020) of 7.5 or higher jobs satisfaction to (Year: 2017) (Year: 2017) ‘Good’ • BREEAM- (Year: 2016) Outstanding • Increase average • New leases
Slide 46: CSR results 2016
BRICKS HR PARTNERS SOCIETY • LfL energy • 2016 employee • 897 new retail jobs • Results 2016: Fin 7.4, consumption 2016 survey: 89.5% created in 2014-16 Fra 7.8, Ned 7.6, Bel in -3.5% y-o-y response rate, score 2017 7.6 • Green leases Bel, • BREEAM certificate Fin and Fra 100%, • Bel 0.81%, Fin 1.24
Slide 47: Solar panels at shopping centres
Solar panels at Winkelhof, Leiderdorp Solar panels at Vier Meren, Hoofddorp Solar panels at Vier Meren, Hoofddorp 47
Slide 48: Community initiatives
‘Longest table’ at Koningshoek, Maassluis Swop box at Etten-Leur Opening Linda Foundation at Cityplaza, Nieuwegein 48
Slide 49: Appendix
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Slide 50: Portfolio value distribution overview
PORTFOLIO VALUE DISTRIBUTION OVERVIEW • Independent property company, founded in 1930 • First REIT in Europe 4 • Investing & operating convenience shopping centres in the Netherlands, France, Belgium 1 and Finland 3 • ‘REIT’ status in the Netherlands, Belgium and 2 France • Listed on Euronext Amster
Slide 51: Key facts portfolio by country and asset type
KEY FACTS PORTFOLIO BY COUNTRY AND ASSET TYPE Property portfolio Dec 2016 €3.8bn Country Number of shopping centres 32 21% Average size of property 25,965sqm Belgium 40% France Amount of shopping centre visitors €3,803m 155m Finland (2016) 24% Netherlands Loan to value ratio1 39.0% 15% Occupancy sho
Slide 52: Top 10 assets
(VALUE DEC 2016) Top 10: € 2,090m = 55% of total portfolio 1 Helsinki 2 Nieuwegein 3 Strasbourg 4 Rouen 5 Liege € 566m, 101,000m² € 207m, 53,600m² € 206m, 28,400m² € 189m, 37,200m² € 184m, 31,000m² 6 Rouen 7 H’hugowaard 8 Arnhem 9 Nivelles 10 Bordeaux € 164m, 34,300m² € 149m, 35,100m² € 146m, 37,900
Slide 53: Top 10 tenants
(VALUE DEC 2016) Top 10: 21% of rent roll 1 Ahold-Delhaize 2 Hennes & Mauritz 3 Blokker 4 C&A 5 Stockmann Food groceries Fashion Household goods Fashion Department store 3.9% 3.2% 3.0% 1.9% 1.9% Excellent Retail Brands 6 AS Watson Group 7 HEMA 8 Jumbo 9 Excellent Retail Brands 10 ERGO Services Drugs
Slide 54: Contract rent by category
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% Tenant mix excluding office, parking & residential 54
Slide 55: Lease expiry profile by country
(IN PERCENTAGE) 2017 8% • Belgium 3.5% of lease expiries in 2017, of which 1.2% is already renewed or re-let and 2018 12% 2.3% is pending 2019 11% • Netherlands 7% of lease expiries in 2017, of 2020 13% which >5% is expected to be rotated or 2021 14% renewed 2022 7% • France 7% of lease expiries in
Slide 56: Direct & indirect result 2016
Direct & Indirect Result for the year ended December 31, 2016 (x € 1,000) 2016 2015 direct indirect direct indirect result result result result Gross rental income 230,184 - 207,313 - Service costs charged 37,893 - 37,258 - Total revenues 268,077 - 244,571 - Service costs paid -43,625 - -42,164 - Pr
Slide 57: Balance sheet
(x € 1,000) December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Assets Equity and Liabilities Non-current assets Equity Investment property in operation 3,696,221 3,655,269 Share capital 40,271 40,271 Lease incentives 5,110 3,985 Share premium 1,711,031 1,711,031 Investment prope
Slide 58: IFRS NAV to EPRA NAV reconciliation
(in € per share) IFRS NAV 31 December 2016 49.16 Effect of conversion - Diluted NAV 49.16 Fair value derivatives 0.40 Deferred tax 1.91 EPRA NAV 51.47 Fair value derivatives -0.40 Fair value interest bearing debt -1.60 Deferred tax -1.15 EPRA NNNAV 31 December 48.32 2016 58
Slide 59: Investor relations contact
• Jaap-Jan Fit • jaap.fit@wereldhave.com • T +31 20 702 78 43 • investor.relations@wereldhave.com • www.wereldhave.com 59
Slide 60: Wereldhave
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