Slide 1: H1 2024 results presentation
20/08/2024 H1 2024 results presentation
Slide 2: H1 2024 results summary
2 H1 2024 results summary Portfolio at work Focusing on growth Solid financial profile (€ 151m) +4% ▪€ 81m ▪ First time investment grade (BBB+) issuer rating assigned by Fitch LfL rental growth acquisitions 100% ▪€ 66m ▪36.3% LTV occupancy development capex 5.13% ▪€ 4m ▪7.4x stable EPRA NIY energy i
Slide 3: H1 2024 highlights, Outlook, Portfolio update, ESG, Market update, Appendix
H1 2024 highlights Outlook Portfolio update ESG Market update Appendix
Slide 4: H1 2024 highlights
H1 2024 highlights MONTEA
Slide 5: EPRA EPS up 4%
EPRA EPS up 4% H1 EPRA result of € 44.9m, an increase of 16% YoY* EPRA EPS Net result € 2.22 € 95.6m Includes € 43.7m of +4% YoY* positive property revaluation +12% weighted avg. # of shares € 4.73 per share net result * The difference between € 43.7m property revaluation reported and € 46m explaine
Slide 6: Driven by 4% increase in LfL rents
Driven by 4% increase in LfL rents (K€) H1 2024 H1 2023 YoY LfL rental growth Net rental income 54,955 52,031 +6% H1 LfL rental growth +4% of which of which rent from solar panels (Netherlands) 1,148 928 +24% +3.2% linked to rent indexation and +0.8% linked to rent renegotiations Other real estate i
Slide 7: Solid financial metrics
Solid financial metrics First time issuer investment grade credit rating BBB+ (Stable Outlook) assigned by Fitch, recognising Montea’s disciplined balance sheet approach as well as its resilient and qualitative portfolio Long-term senior unsecured A- rating assigned EPRA LTV at Adj. Net Debt/EBITDA
Slide 8: With well-diversified debt and liquidity available
With well-diversified debt and liquidity available Long-term funding Cost of debt stable at average remaining debt maturity & hedging, both >6 years 2.3% Strong liquidity € 285m immediately available funding (cash + untapped credit lines)* Hedge ratio of 60% optional dividend 94% take-up with € 31m
Slide 9: Portfolio update
See Portfolio update MONTEA
Slide 10: Solid portfolio valuation with +1.4% value uplift in Q2
Solid portfolio valuation with +1.4% value uplift in Q2 Positive portfolio revaluation of € 34m (+1.4% vs. end March), € 46m (+2.0% vs. end 2023) driven primarily by development gains Standing portfolio continues to show resilience with +0.3% value gain vs. end March (flat vs. end 2023) Portfolio va
Slide 11: Locations
Locations Belgium The Netherlands France Germany Lille Hamburg Antwerp Ghent Paris Berlin Brussels Amsterdam Düsseldorf Liège Leipzig Rotterdam Cologne Charleroi Frankfurt Breda Tilburg Lyon Venlo Marseille Stuttgart Main logistics hotspots Munich Montea sites Country # sites SQM (‘000) Fair Value A
Slide 12: Portfolio continues to show resilience
12 Portfolio continues to show resilience While continuing value creation through own developments 5% 4% +0.5% 3% ERV growth in Q2 (+0.6% YTD) 2% 1.1% 0.7% 0.9% +2 bps 1% 0.5% 0.5% 0.4% 0.3% 0% 0.0% -0.1% 0.0% -1% Yield effect* in Q2 (+4 bps YTD) -2% -3% +1.4% -4% -5% 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3
Slide 13: 10% reversionary potential remains
10% reversionary potential remains Current rent + ERV on vacancy / Total ERV 110% 105% Inflation & indexation levels have fallen short of ERV increases 100% observed in the market 95% 10% 90% Q2 2024: 10.2% 85% 80% Reversionary potential of 10% provides valuation support and 4Q15 4Q18 4Q21 4Q14 4Q16
Slide 14: 100% occupancy for 6th quarter in a row
100% occupancy for 6th quarter in a row Proactive portfolio management Lease maturity profile Occupancy (%) (% of current rent) 9% 60.1% 65% 100.0% 100.0% of the rent roll had a break or 99.7% lease term in 2024 (€ 9.8m)… 99.3% 99.4% 99.4% 99.1% … with 88% 13.4% already extended or relet WALB: 5.7 y
Slide 15: € 151m of accretive investments in H1
€ 151m of accretive investments in H1 Total invested in H1: € 151m ▪ Acquisitions: € 81m ▪ Pipeline investments: € 66m ▪ Solar panels & batteries: € 4m
Slide 16: Volume of projects in execution doubles in Q2
Volume of projects in execution doubles in Q2 ▪ 40% of the 1m sqm targeted landbank deployment now delivered or in execution ▪ GLA in execution now at 208,000 sqm (vs 117,000 sqm end March) ▪ Tiel North added (91,000 sqm), all necessary permits now obtained ▪ Average lease term at 14 years ▪ Total v
Slide 17: Accretive growth through developments…
Accretive growth through developments… Construction started in H1 NEW Tiel North (NL) Aalst(BE) Tongeren III (BE) ▪ 91,000 sqm GLA ▪ 9,000 sqm GLA extension ▪ Phase 2, third building ▪ Pre-let to Intergamma for 15 years ▪ Pre-let to Movianto ▪ 14,000 sqm GLA, pre-let ▪ Investment budget: € 83m ▪ Inv
Slide 18: …as well as strategic acquisitions
…as well as strategic acquisitions Acquired in H1 Acquired in July Acquired in July NEW Hamburg (DE) Ghent Korte Mate (BE) Zellik (BE) Maastricht Beatrixhaven (NL) ▪ Logistics park: 63,500 sqm GLA ▪ Prime Port of Ghent location: ▪ Land: 36,000 sqm, ▪ In the multimodal Beatrixhaven 14,000 sqm GLA 14,
Slide 19: Development pipeline
Development pipeline Grey/Brow n/G Invested Country Project name Estima ted delivery Landba nk GLA To inve st Tota l ca pex of the project reen field 30/06/2024 Brown Vorst (Delhaize) Q3 2024 55,000 m² 21,000 m² 28 M€ 11 M€ 38 M€ Pipeline developments Brown Blue Gate 2 (Herfurth & Dries Van Noten) Q
Slide 20: Pipeline c. 300,000 sqm GLA in Belgium
Pipeline c. 300,000 sqm GLA in Belgium* Blue Gate 16,000 sqm Zellik 14,000 sqm Antwerpen Aalst Zellik Lummen Aalst 9,000 sqm Grimbergen Grimbergen 30,000 sqm Forest/Vorst Tongeren Halle Vorst 21,000 sqm Lummen 32,000 sqm Halle 31,000 sqm * incl. recently delivered Tongeren-Baywa (34,000 sqm) Tongere
Slide 21: Pipeline c. 255,000 sqm GLA in The Netherlands
Pipeline c. 255,000 sqm GLA in The Netherlands* Amsterdam Amsterdam 7,000 sqm Tiel 116,000 sqm Waddinxveen Tiel Born * Pipeline also includes 1 undisclosed project Waddinxveen 50,000 sqm Born 67,000 sqm
Slide 22: Extensive land bank
Extensive land bank ... with a focus on grey and brownfields Total landbank 31/12/2023 2.2m sqm In during H1 2024 ▪ 100% situated in logistics & industrial zonings + 0.04m sqm Out during H1 2024 - 0.22m sqm ▪ Future development potential ± 1m sqm GLA Total landbank 30/06/2024 = 2.2m sqm ▪ Extension
Slide 23: Creating value via our land bank
Creating value via our land bank Tongeren: 184,000 sqm Senlis: 170,000 sqm Toury: 545,000 sqm Mannheim: 83,000 sqm Tiel: 449,000 sqm
Slide 24: Market update
R THREE CHAPTI R THREE CHAPTE TTT MONTEA
Slide 25: Occupiers remain optimistic about expanding
Occupiers remain optimistic about expanding Occupier expansion plans Expanding respondents in the next 3 years per occupier sector 58% plan to expand 3PLs most bullish, Medium-term outlook 2023 2024 in the next 3 years 2023 2024 continue to lead demand weighted towards expansion 40% 90% 37% 80% albe
Slide 26: …and occupiers shift focus to sustainable buildings
…and occupiers shift focus to sustainable buildings % of occupiers’ footprint that will become obsolete by 2030 % of occupiers’ footprint that will become 25%-100% 44% Building obsolescence was not a focus point due to very low vacancy rates… obsolete by 2030 0%-25% 56% But this has changed, with 44
Slide 27: …whilst supply of sustainable buildings remains constrained
…whilst supply of sustainable buildings remains constrained Vacancy evolution since end 2023 6% Despite increases in vacancy, European logistics service providers continue to experience challenges +110bps finding warehouses that meet their requirements 5% +140bps 4% +10bps … with 58% reporting diffi
Slide 28: Outlook
TTT MONTEA
Slide 29: Earnings guidance and outlook reiterated
Earnings guidance and outlook reiterated 2024 guidance 2025 guidance EPRA EPS growth ▪ EPRA EPS at € 4.55 excl. potential ▪ EPRA EPS at € 4.75 excl. potential positive one-off (€ 0.18 FBI provision positive one-off (€ 0.15 FBI provision reversal for FY 2023) reversal for FY 2024) € 0.15* € 0.45* € 0
Slide 30: Earnings guidance 2024-2025
Earnings guidance 2024-2025 EPS (€) Sustainable growth of earnings & dividend per share 0.15 0.45 0.18 DPS (€) 4.75 4.55 4.45 2013-2023: +8% p.a. on average 4.10 3.75 3.50 3.60** 3.28 3.74* 3.30 2.95 3.03 2.83 2.58 2.54 2.47 2.29 2.26 2.00 2.05 1.97 2.17 1.79 1.82 2.11 2.03 1.93 1.97 1.97 1.84 1.84
Slide 31: Total return EPRA NTA evolution + dividend paid
Total return EPRA NTA evolution + dividend paid 90 80 2015-2023: +21% p.a. on average 70 Yield compression helped +8% total returns in 2016-2022 Outlook 2024-25e** 60 +15% +11% p.a. on average 50 +29% 40 +24% Portfolio valuation resilient in 2022-23 30 +35% +24% +14% 20 +18% 2 4 6 8 10 12 14 16 18 2
Slide 32: ESG
— Nt MONTEA
Slide 33: 74 MWp photovoltaic capacity reached in H1
74 MWp photovoltaic capacity reached in H1 Total: 74 MWp photovoltaic capacity FR 11 2 reached in H1, with 88 MWp MWp targeted by 2024 end • An additional capacity of Total: 14 MWp to be added by 2024 NL 16 3 8 7 34 MWp end by equipping 100% of standing portfolio* as well as new developments with PV
Slide 34: 56 MWh energy storage potential
56 MWh energy storage potential Antwerp Belgium Total targeted investment of Ghent • 14 different BESS locations € 30m in Battery Energy Brussels Storage Systems (BESS) Liège • 35 MWh installed by the end Charleroi of 2024 • € 17.5m investment Providing 56 MWh energy storage potential for our tenant
Slide 35: Montea
MONTEA
Slide 36: Appendix
Balance sheet Appendix Portfolio Dutch FBI ESG About Montea
Slide 37: Strong balance sheet
Strong balance sheet 9 9 8 8 7 7 6.7 6 6.2 6 51.3% 8.4 5.5 8.4 7.3 7.4 37.1% 36.9% 39.7% 5 6.8 5 36.3% 33.5% 36.3% 6.5 6.7 4.9 4.5 4.5 4.5 4 4 3 3 2018 2019 2020 2021 2022 2023 H1 2024 2018 2019 2020 2021 2022 2023 H1 2024 (adjusted) NET DEBT / EBITDA Interest Coverage Ratio (ICR): the sum of operat
Slide 38: Diversified, long-term funding
Diversified, long-term funding Financing sources Maturity (y) Maturity credit lines & bonds 7.0 250 6.0 200 5.0 150 4.0 6.5 3.0 6.1 100 2.0 50 1.0 67% 32% <1% 0.0 0 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 BONDS CREDITLINES LEASING MATURITY FINANCING MATURITY HEDGING Creditlines Bonds
Slide 39: Property portfolio
Property portfolio Total The Total Belgium France Germany 30/06/2024 Netherlands 31/12/2023 Property portfolio – Buildings1 Number of sites 97 42 18 34 3 95 Total area – property portfolio m2 1,926,268 809,977 214,720 703,076 99,495 1,959,242 Annual contractual rents K€ 111,279 50,747 12,694 42,295
Slide 40: Portfolio snapshot
Portfolio snapshot Development Fair value Capex gains & Country (€ m) Fair value YTD 01/01/2024 H1 2024 revaluation € 151m H1 2024 30/06/2024 Capex Belgium 1,063 58 18 1,139 +7.2% France 256 1 -3 255 -0.4% The Netherlands 930 33 33 996 +7.1% € 46m Germany 31 59* -1 88 X3 Development gains & 2,280 15
Slide 41: FBI status
FBI status Out of prudence, Montea does not assume it will be granted the FBI status in 2023 & 2024 FBI overview 2021-2022 2023 2024 2025 FBI status accounted for in financial accounts of Montea N/A Withholding tax rate in financial accounts 5% 5% 5% N/A Corporate Income tax rate in financial accoun
Slide 42: 5 ways Montea focuses on sustainability
5 ways Montea focuses on sustainability Fossil free heating Airtight and Green power Circular Long-lasting (no gas) energy-efficient and green roofs construction roofing loading docks
Slide 43: Sustainability highlights
Sustainability highlights Montea existing portfolio Use of local renewable energy: 95% in 2023 Targets: Greenhouse Gas Emissions -55% NET-ZERO CO2 in 2030 in 2050 Actions Energy efficiency GHG reduction Relighting Additional Roof Green energy Use of local Phasing out 83% façade renovation contracts
Slide 44: Sustainability highlights
Sustainability highlights Montea operations On the way to net zero Targets: Greenhouse Gas Emissions NEUTRAL NET-ZERO since 2021 in 2030 Actions Green electricity Carbon footprint Electric fleet 100% 3.5 t CO2/FTE 61% in 2023 in 2023 (reduction of 19% compared to 2022) 100% in 2027
Slide 45: Sustainability highlights
Sustainability highlights Montea operations Energy intensity max 25 kWh/m²/year, target for 2030 already achieved in 2023 Targets: Greenhouse Gas Emissions -55% NET-ZERO CO2 in 2030 in 2050 Actions Energy efficiency GHG reduction • Airtight building and loading docks • Solar plants • Natural dayligh
Slide 46: About Montea
About Montea In the last 10 years, a shareholder gets an IRR of 16%* Share price & IFRS NAV evolution (per 30/06/2024) 130 € 110 € 90 € 70 € 50 € 30 € 10 € -10 € Premium MONTEA Share price IFRS NAV (incl. IAS 39) * Share evolution + gross dividend - Period Jan. 1, 2014 > June 28, 2024 (10 years).
Slide 47: Contact IR@MONTEA.COM
CONTACT IR@MONTEA.COM MORE INFORMATION MONTEA.COM This presentation contains forward-looking statements. Such forward-looking statements involve unknown risks, uncertainties and other factors which may cause the actual results, financial conditions, performance or achievements of the company to be m