Prodea Real Estate Investment Co. Sa · ATHEX:PRODEA
Prodea Real Estate Investment Co. Sa — Investor Presentation (April 2023)
40 slides from Prodea Real Estate Investment Co. Sa's investor presentation, April 2023
Slide 1: Company Presentation as of 31.12.2022
Company Presentation as of 31.12.2022 April 2023
Slide 2: Table of Contents
Table of Contents 1 PRODEA Snapshot 2 2 Company Insights 8 3 Appendix 30 1
Slide 3: PRODEA Snapshot
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Slide 4: PRODEA at a glance
PRODEA at a glance The leading company in Real Estate investments in the Hellenic market, combining the best features of a REIC, Key portfolio KPIs value creation and focus on sustainability Largest REIC in Greece(1) High-quality diversified portfolio ✓ Largest Greek REIC(1) with footprint across Gr
Slide 5: Clear strategic goals
Clear strategic goals ▪ Benefit from the positive momentum in the Greek market; with an aim of ensuring an increased recurring income ▪ Lack of new stock ▪ Increased tenant demand for quality spaces ▪ Increase in rents ▪ Compressing yields ▪ Strong emphasis on green portfolio of office aiming to bec
Slide 6: PRODEA has a strong track record of growth
PRODEA has a strong track record of growth… GAV (in €m) Key Events Appraised value of prior year’s asset base Asset acquisitions or received contributions NBG founded Pangaea as its real estate 2010 subsidiary and fully controlled REIC Invel led consortium acquired 66% 2,567 2013 stake Evolution of
Slide 7: PRODEA has a strong track record achieved with a well-defined strategy
PRODEA has a strong track record achieved with a well-defined strategy Disciplined acquisition Active asset management Optimal financing ▪ Acquisitions driven by fundamentals ▪ Maintain revenue visibility - high ▪ Target c.40-45% Gross LTV, c.35-40% and a long-term holding mentality occupancy Net LT
Slide 8: Company Insights
2 Company Insights 7
Slide 9: Macro recovery momentum in Greece
Macro recovery momentum in Greece After significant reforms to aid the country’s recovery from deep economic depression, Greece’s macro-outlook has strengthened, boosting investors’ confidence in the country’s prospects. Greek economic growth is expected to remain robust in the following years Real
Slide 10: Favorable Greek RE sector fundamentals
Favorable Greek RE sector fundamentals Despite the evident contraction of the RE yields in Greece over the last 5-6 years, they are still attractively trailing behind those of other EU countries Evolution of Real Estate Yields in Greece Prodea vs. Greek & European Yields(1) Prime Office Yield Trends
Slide 11: Well diversified portfolio
Well diversified portfolio Breakdown of PRODEA portfolio by asset class Hospitality Bank branches 10% 16% Retail / Big boxes 18% AUM (1) : €2.8bn Logistics Offices 3% Other(2) 48% 5% Overall, Prodea maintains a low dependence on any single asset class or individual property Source: Company informati
Slide 12: High rental yielding portfolio with superior KPIs
High rental yielding portfolio with superior KPIs 51% 18% 20% 12% Offices Bank branches Retail Logistics / Hospitality / Total Other(1) No. of properties(2) 72 164 105 40 381 GLA(3) (000 sqm) 681 153 363 237 1,435 GAV Appraised value 2,567 1,316 (in €m)(3),(4) 444 503 304 93% 97% 96% 93% 94% Occupan
Slide 13: Footprint across attractive and prime locations
Footprint across attractive and prime locations Map is not to scale Hellenic market: 327 properties in Greece and 24 properties in Cyprus Italy(1): 26 assets in 16 cities Value: €2,286m | GLA: 1,154k sqm | Occupancy: 97.2% | Key cities(4): 81.2% Value: €415m | GLA: 201k sqm | Occ.: 75.7% | Key citie
Slide 14: A portfolio leased to strong creditworthy tenants
A portfolio leased to strong creditworthy tenants, comprising financial and governmental institutions, as well as well-known corporates Tenants Main lease features ✓ Favorable lease terms minimizing cash flow leakage ✓ 8.4/ 12.0 years WAULT excluding/including break options ✓ c.84% of annualized ren
Slide 15: Mediterranean Hospitality Venture
Mediterranean Hospitality Venture ▪ Mediterranean Hospitality Venture (“MHV”), focuses on large high-end resort hospitality investments with significant development upside potential ▪ PRODEA holds a 25% stake in MHV together with reputable and experienced co-investors ▪ MHV’s main hospitality market
Slide 16: Secured and New Projects
Secured and New Projects c.€700m of Projects(1) | More than 480,000sqm | 70% Secured | 97% Green Certified Mixed Use (Office & Retail) Other 3% 4% Conventional In Negotiations 3% 20,5% Logistics 27% Offices 34% New Segment Energy Approved Progress 10,0% Secured Green 69,5% Certified Hotels & Residen
Slide 17: Potential Annualized Rent Evolution Generated from Secured Projects
Potential Annualized Rent Evolution Generated from Secured Projects 30,0 26,2 25,0 23,5 20,0 16,9 16,9 17,1 14,5 15,0 12,4 7,9 7,9 10,0 8,5 4,4 1,9 5,0 9,0 9,0 9,0 9,0 8,1 6,7 €'mn - H1 2023 H2 2023 H1 2024 H2 2024 H1 2025 H2 2026 Management Estimates for Annualised Rents Generated from not yet (pre
Slide 18: Asset Management Initiatives in Greece
Asset Management Initiatives in Greece Through the company’s active asset management approach, outstanding results have been achieved in both lease-ups and sales during 2022, leading to significant value creation for 2023 onwards Lease-ups Initiatives/Achievements Recent Lease Agreements ✓ c.97.5% t
Slide 19: Green assets: eLement – Marousi
Green assets: eLement – Marousi A state-of-the-art Grade A office building in Marousi’s business district. The building, which was completed on Q4 2021,has been fully let, has a total surface of 13,900sqm and is certified with LEED Platinum level ✓ Asset Name: eLement, Marousi ✓ Asset Class: Office
Slide 20: Green Assets: Moxy Athens City
Green Assets: Moxy Athens City Moxy Athens City is the first certified Green hotel in Greece ✓ Asset Name: Moxy Athens City ✓ Asset Class: Hotel (10,000 sqm – 201 rooms) ✓ Certification: LEED Gold ✓ Completion: Q1 2022 19
Slide 21: Green Assets: IQ Hub – Marousi
Green Assets: IQ Hub – Marousi A state-of-the-art Grade A office building in Marousi’s business district. The building, which has been fully pre-let, has a total surface of 14,700sqm and upon completion it will be certified with LEED Gold or Platinum level ✓ Asset Name: Funnel, Marousi ✓ Asset Class
Slide 22: Green Assets: The Wave – Syggrou 44
Green Assets: The Wave – Syggrou 44 Full renovation and repositioning of 5,600sqm green office building close to Syggrou metro station, with spectacular views to the Acropolis. Prodea has signed HoT for the whole property and lease agreement is being negotiated ✓ Asset Name: The Wave, Syggrou Ave. 4
Slide 23: Green Assets: Importex - Syggrou & Lagoumtzi 40
Green Assets: Importex - Syggrou & Lagoumtzi 40 A modern, sustainable, high quality office complex on Syggrou avenue, enjoying high visibility and ease of access, in close proximity to the center of Athens. The complex, designed by the international office Barnett Associates, consists of two autonom
Slide 24: Green Assets: Piraeus Tower
Green Assets: Piraeus Tower A landmark building which is located in Piraeus Port. “Piraeus Tower” consists of 22 floors with a total area of c.30,000sqm. The redevelopment of the building is being executed through a joint venture with a developer where PRODEA participates with a 30% stake. The tower
Slide 25: Residential sector
Residential sector The Company is currently expanding its footprint in the residential sector through the acquisition of 10 land plots for the development of sustainable residential properties in selected areas of Attica, Greece and 1 fully let residential property. The aim is to carry out investmen
Slide 26: Strong Financial Performance
Strong Financial Performance Financial Performance (in €m) Total shareholders’ return per share IRR: c.11%(1) 8.06 8.64 149.7 Multiple: c.2.1x 7.30 0,29 134.2 0,29 6.90 6.09 108.5 5.63 2,58 101.7 102.8(2) 2,30 5.10 5.31 1,34 1,95 4.93 90.3(2) 1,05 0,83 4.05 0,43 0,63 5,56 5,47 5,77 5,04 5,35 4,93 4,
Slide 27: Continuous balance sheet management to optimize finance cost and average debt maturity
Continuous balance sheet management to optimize finance cost and average debt maturity Key Figures as of 31 Dec 2022 (in €m unless otherwise stated) Debt Split by Category Gross Debt 1,361(1) Public Bonds 22% Cash & Restricted Cash 189 GAV 2,567(2) Gross LTV (%) 53.0% Syndicated Bonds 78% Net LTV (%
Slide 28: Significant amount invested in green certified buildings
E S G Significant amount invested in green certified buildings ✓ Asset name: Karela Office Park ✓ Asset name: NBG IT Center, Gerakas ✓ Asset Class: Office ✓ Asset Class: Office Green Offices ✓ Certification: LEED Gold ✓ Certification: LEED Gold 33% ✓ GAV: €112m ✓ GAV: €83m Offices 31.12.2022 ✓ Asset
Slide 29: Corporate Social Responsibility
E S G Corporate Social Responsibility “Structures of Responsibility” a continuously evolving plan of social actions and interventions Infrastructure work / refurbishment of health Refurbishment and operational upgrade of facilities, such as hospitals and nursing homes social structures, infrastructu
Slide 30: Solid corporate governance - Top-tier seasoned, inclusive management team
E S G Solid corporate governance - Top-tier seasoned, inclusive management team PRODEA has been implementing policies that contribute to an effective Corporate Governance structure, cultivating a corporate culture of integrity, diversity and inclusiveness, leading to a sustainable business BoD Diver
Slide 31: Proven ability to generate value
Proven ability to generate value Assets with solid fundamentals, rental growth and rental yield compression potential Selectiveness ✓Prime location ✓Attractive risk/return profile ✓Environmental efficiency GAV growth: 3x(1) €1.8bn Track-record even during Greek financial crisis of acquisitions s
Slide 32: Appendix
3 Appendix 31
Slide 33: Well diversified portfolio - selected assets
Well diversified portfolio - selected assets LEED Gold LEED Gold BREEAM – Very Good Offices Karela Office Park, Athens PRODEA HQ Sofia City Tower, Bulgaria eLement, Marousi LEED Gold Hotels NBG IT Center, Gerakas Lazart, Thessaloniki Aphrodite Hills, Cyprus Parklane Hotel, Cyprus Retail Metrocomplex
Slide 34: REIC framework in Greece
REIC framework in Greece REIC vs. Societe Anonyme: tax efficient structure Key REIC requirements REIC Societe Anonyme Investments and liquid ▪ At least 80% of the assets must be invested in real Corporate income estate assets taxed at 22% on taxable profit tax 10%*(ECB rate + 1%) ▪ Development cost
Slide 35: Consolidated statement of financial position – IFRS
Consolidated statement of financial position – IFRS Amounts in € ’000s Dec-2020 Dec-2021 Dec-2022 Assets Non-current assets Investment property 1,918,015 2,279,958 2,491,284 Equity method investments and investments in joint ventures 15,995 104,972 157,336 Property and equipment 10,929 10,632 10,171
Slide 36: Consolidated income statement – IFRS
Consolidated income statement – IFRS Amounts in € ’000s Dec-2020 Dec-2021 Dec-2022 Continuing Operations Revenue 133,897 134,204 186,923 Net gain / (loss) from fair value adjustment of investment property (7,573) 96,723 59,669 Gain from disposal of investment property 4,748 197 1,367 Direct property
Slide 37: EBITDA and FFO calculations
EBITDA and FFO calculations EBITDA Amounts in € ’000s Dec-2020 Dec-2021 Dec-2022 Profit for the period from continuing operations 62,946 175,081 123,771 Plus: Depreciation and Amortization 464 556 549 Plus: Net Finance costs 29,020 37,776 42,754 Plus: Taxes 2,260 3,222 861 EBITDA 94,690 216,635 167,
Slide 38: NAV break-down
NAV break-down Amounts in € ’000s Dec-2020 Dec-2021 Dec-2022 Shareholders’ Equity 1,365,687 1,396,080 1,465,735 Plus: IFRS Adjustment (1) 2,220 251 9,500 NAV 1,367,907 1,396,311 1,475,235 (1) Difference between the NBV and the market value (as determined by the independent statutory valuers) of the
Slide 39: Disclaimer
Disclaimer By viewing or receiving this presentation, you are agreeing to be bound by the following limitations. This corporate presentation (the CP) has been prepared by Prodea Real Estate Investment Company Societe Anonyme (the Company) and has not been independently verified. Τhe Company does not
Slide 40: Disclaimer (continued)
Disclaimer (continued) Forward Looking Statements Certain statements in this presentation are forward-looking. This presentation also includes certain forward-looking information related to the Company’s pipeline. Such information is given only based on Company’s reasonable expectations or estimates
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