Slide 1: Preliminary Results for the year ended 31 December 2010
Preliminary Results for the year ended 31 December 2010 23 March 2011
Slide 2: Agenda
Agenda • Financial Highlights • Operational Highlights • U.S Operation • Summary and Outlook • Appendix – projects overview
Slide 3: Financial Highlights
Financial Highlights Total assets of €1.4 billion (31 December 2009: €1.06 billion) Net Asset Value up 2.4% to €675 million (31 December 2009: €659 million) mainly due to gain from accretive purchase in the US Net Asset Value per share £1.96 (31 December 2009: £2.02), a small decline of 3%, attribut
Slide 4: Financial Highlights (cont.)
Financial Highlights (cont.) • Strengthened cash position (including restricted bank deposits, short term deposits and available for sale financial assets) of €195 million (31 December 2009: €179 million) with working capital of €713 million (31 December 2009: €710 million) – Current cash position i
Slide 5: Financial Highlights (cont.)
Financial Highlights (cont.) • Ongoing support from lenders, with loan agreements signed for financing 70% (circa €33 million) of the development costs for a new shopping centre at Kragujevac, Serbia (22,000 sqm GLA) and a development loan covering 70% (€52.5 million) of the construction of a 40,000
Slide 6: Financial Overview
Financial Overview Results 2010 2009 € ‘000 € ‘000 Revenues (1) 37,641 16,045 Impairment loss of trading properties(2) 6,710 33,893 Cost of operations (3) 20,853 12,970 Gross profit (loss) 10,078 (30,818) (1) 2010: US rental income- €12.5m, rent in Europe- €12m, Fantasy Park - €7.5m, fair value adju
Slide 7: Financial Overview (Cont.)
Financial Overview (Cont.) 2010 2009 € ‘000 € ‘000 Administrative expenses (1) 17,923 19,054 Other income, net (2) 42,343 241 Results from operating activities (3) 34,498 (49,631) Finance expenses, net (4) (21,177) (18,120) Share in loss of associate (381) (780) Tax benefit (5) 1,308 3,819 Profit (l
Slide 8: Financial Overview (Cont.)
Financial Overview (Cont.) NOTES TO THE RESULTS (1) Administrative expenses decreased mainly due to decrease in non-cash share based payments to €2.5 million (2009: €2.8 million) as well as reduction in professional expenses and general costs due to cost cutting programme (2) 2010 - includes gain fr
Slide 9: Financial Overview (Cont.)
Financial Overview (Cont.) Balance sheet and cash flow • Net assets of €624.4 million (31 December 2009: €574.7 million), with increase primarily due to Plaza‟s profit from bargain purchase for US acquisition less finance and administrative expenses, as well as positive change in translation reserve
Slide 10: NAV
NAV • The main impact on the increase in NAV came mainly from gain from bargain purchase in the US and from increase in the value of the two completed shopping and entertainment centres in Suwalki and Zgorzelec in Poland which were completed and opened during H1 2010 USE € (‘000) Market value of lan
Slide 11: Operational Highlights 2010
Operational Highlights 2010 Ongoing progress with expansion plan for the United States: • Launch of Elbit Plaza USA, L.P. (“Elbit Plaza USA”), a real estate investment venture jointly formed by Plaza and its parent, Elbit Imaging Ltd. (“Elbit”). Co-investment agreement signed with Eastgate Property
Slide 12: Operational Highlights 2010 (cont.)
Operational Highlights 2010 (cont.) Significant development milestones achieved: • Zgorzelec Plaza in Poland was completed and opened in March 2010. The 13,000 sqm GLA shopping centre was circa 75% let on opening, with tenants including H&M, KappAhl and Douglas • Completion of Plaza‟s 30th shopping
Slide 13: Operational Highlights 2010 (cont.)
Operational Highlights 2010 (cont.) Significant development milestones achieved: • Encouraging progress was made during 2010 on the construction and letting of the 110,000 sqm built up area mixed-use scheme in Pune, the Koregaon Park Plaza, which will comprise a shopping centre and office space. Dur
Slide 14: Key Highlights since the period end
Key Highlights since the period end • Plaza issued an additional principal amount of approximately NIS 267 million (approximately €58 million) of Series A and B bonds for an aggregate consideration of approximately NIS 300 million (approximately €65 million by way of a private placement • EPN made a
Slide 15: U.S Operation – EDT Portfolio
U.S Operation – EDT Portfolio • Total Owned Square Feet (Thousands): 10,942 • Rentable area: over 1.02 million sqm; highly diversified tenant base • Average Occupancy: 88.8% (% leased today) • Average Yearly Rent Per Square Foot : $11.76 (current rents) • Net operation income of over USD 100 million
Slide 16: U.S Operation – EDT Portfolio
U.S Operation – EDT Portfolio EDT – Top Ten Tenants TJX Companies 5.9% PetSmart 4.7% Kohl’s 4.7% Best Buy 3.3% Dick’s Sporting Goods 2.6% Bed Bath & Beyond 2.5% Wal-Mart 2.2% Jo-Ann Stores 2.1% Home Depot 2.0% Schottenstein Stores 2.0% Top Ten Tenants 32.1% Top ten states by Annual Base Rent Massach
Slide 17: U.S Operation – EDT Portfolio
U.S Operation – EDT Portfolio • Since acquiring EDT, we have implemented a programme of improvements, which included the extension of long term credit related to the assets, the rental of available space and the reorganization of the management structure • Among our first actions in EDT: o The entir
Slide 18: U.S Operation – Grocery Anchored Centres Portfolio
U.S Operation – Grocery Anchored Centres Portfolio • In December 2010, EPN entered into an agreement with Charter Hall, an Australian company, to purchase seven commercial centres of grocery anchored shopping centres in the US with a property value of USD 75 million • The Grocery Anchored Centers Po
Slide 19: Building upon our successful business model
Building upon our successful business model Continue to build on successful track record of developing, letting and selling shopping & entertainment centres in CEE for over 15 years Geographic expansion beyond CEE now well advanced through US acquisition and Indian projects Strong ability to i
Slide 20: Outlook
Outlook Continue to adapt business strategy and maintain financial strength to ensure Plaza remains well positioned for future growth Retain stringent investment criteria for new developments and remain cautious in initiating developments in some CEE territories which have been most impacted by
Slide 21: Outlook
Outlook The evolution of our business model, combined with the financial strength of the Company, leaves us ideally positioned for growth and our prospects for delivering future value for shareholders remains strong
Slide 22: Appendix A: Current Projects
Appendix A: Current Projects
Slide 23: Portfolio Summary – by Country (excluding U.S)
Portfolio Summary – by Country (excluding U.S) Total portfolio of 37 assets in 9 countries 1 Offices Under Development 2 Completed & Active 8 7 1 1 5 6 6 3 1 3 2 2 1 1 Romania Poland India Hungary Czech Serbia Bulgaria Greece Latvia Republic
Slide 24: Projects overview – Completed Projects
Projects overview – Completed Projects Liberec Plaza (Czech Republic) Riga Plaza (Latvia) City: Liberec, Czech Republic City: Riga, Latvia Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 17,000 (GLA) Size: 49,000 (GLA) Plaza Share: 100% Plaza Share:
Slide 25: Projects overview – Serbia
Projects overview – Serbia Belgrade Plaza Sport Star Plaza City: Belgrade City: Belgrade Type: Mixed use (offices, Hotel & retail) Type: Shopping & entertainment centre Size: 70,000 (GBA) Size: 45,000 (GLA) Plaza Share: 100% Plaza Share: 100% Completion Date: 2014 Completion Date
Slide 26: Projects overview – India
Projects overview – India Koregaon Park Kharadi City: Pune City: Pune Type: Mixed use (Shopping, entertainment & offices) Type: Mixed use (Shopping, entertainment & offices) Size: 110,000 (GBA) Size: 165,000 (GBA) Plaza Share: 100% Plaza Share: 50% Completion Date: H2 2011 (Mall)
Slide 27: Projects overview – India
Projects overview – India Bangalore Chennai City: Bangalore City: Chennai Type: Mixed use (residential, offices, retail, hotel, hospital Type: Mixed use (residential, commercial, office and retail) and other infrastructure) Size: 800,000 (GBA) Size: 320,000 (GBA) Plaza Share: 38% Pla
Slide 28: Projects overview - Poland
Projects overview - Poland Torun Plaza Lodz Plaza City: Torun City: Lodz Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 40,000 (GLA) Size: 45,000 (GLA) Plaza Share: 100% Plaza Share: 100% Completion Date: Q4 2011 Completion Date: 2014 Status:
Slide 29: Projects overview - Romania
Projects overview - Romania Casa Radio Timisoara Plaza City: Bucharest City: Timisoara Type: Mixed use Type: Shopping & entertainment centre Size: 600,000 (GBA) Size: 43,000 (GLA) Plaza Share: 75% Plaza Share: 100% Completion Date: 2013-2015 Completion Date: 2014 Status: Initia
Slide 30: Projects overview - Romania
Projects overview - Romania Csiki Plaza Targu Mures Plaza City: Miercurea Ciuc City: Targu Mures Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 14,000 (GLA) Size: 30,000 (GLA) Plaza Share: 100% Plaza Share: 100% Status: Awaiting external finance
Slide 31: Projects overview - Hungary
Projects overview - Hungary Dream Island Arena Extension City: Budapest City: Budapest Type: Business and leisure resort Type: Office Size: 350,000 (GBA) Size: 40,000 (GLA) Plaza Share: 43.5% Plaza Share: 100% Completion Date: 2014-2016 Completion Date: 2013 Status: Initial exc
Slide 32: Projects overview – Bulgaria
Projects overview – Bulgaria Shumen Plaza Sofia Plaza Business center City: Shumen City: Sofia Type: Shopping & entertainment centre Type: Mixed use (Retail & offices) Size: 20,000 (GLA) Size: 44,000 (GLA) Plaza Share: 100% Plaza Share: 51% Completion Date: 2013-2014 Status: Unde
Slide 33: Projects overview – Greece
Projects overview – Greece Piraeus Plaza City: Athens (Greece) Type: Shopping & entertainment centre Size: 26,000 (GLA) Plaza Share: 100% Completion Date: 2014 Status: Plannning stage
Slide 34: Projects overview – Residential Projects
Projects overview – Residential Projects Roztoky (Czech Republic) Prague 3 (Czech Republic) City: Prague, Czech Republic City: Prague, Czech Republic Type: Residential Type: Residential Size: 14,000 (GBA) Size: 61,600 (GBA) Plaza Share: 100% Plaza Share: 100% Completion Date: 2013-
Slide 35: Projects overview – Office buildings
Projects overview – Office buildings David House (Hungary) Palazzo Ducale (Romania) City: Budapest, Hungary City: Bucharest, Romania Type: Office Type: Office Size: 2,000 (GLA) Size: 700 (GLA) Plaza Share: 100% Plaza Share: 100% Status: Operating Status: Operating Prague 3 (Czech