Ireit Global · SGX:8U7U
Ireit Global — Shareholder Meeting (April 2019)
25 slides from Ireit Global's shareholder meeting presentation, Apr 29, 2019
Slide 1: 2019 Annual General Meeting
2019 Annual General Meeting 29 April 2019
Slide 2: Important Notice
Important Notice This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and as
Slide 3: Agenda
Agenda Slide 1 Key Highlights 4 2 Portfolio Overview 9 3 Financial Highlights 17 4 Looking Ahead 23 3
Slide 4: Key Highlights
1 Key Highlights Berlin Campus 4
Slide 5: Key Figures At A Glance
Key Figures At A Glance Financial Portfolio Capital Performance Management3 Management5 Gross Revenue Occupancy Rate Aggregate Leverage -0.4% YoY 98.6% 37.8% Distribution per Unit Appraised Value Interest Rate +0.5% YoY1 €504.9m 1.5% Distribution Yield NAV per Unit % of Loans Hedged 7.7%2 +11.6% YoY
Slide 6: Highlights Of The Year
Highlights Of The Year Berlin Campus: Main tenant did not exercise its lease break option to return part of its leased space, effectively bringing the next break option to 2022. The Campus also attained 100% occupancy after securing new tenants for its retail units Münster Campus: Single tenant
Slide 7: Economic Backdrop
Economic Backdrop Key Highlights GDP Growth (%) 1 4.0% The economic growth moderated across most parts of 3.0% Europe in 2018. 2.7% 2.0% 1.9% There were lingering worries over a potential escalation 1.5% of international trade tensions, sharp slowdown in 1.0% 1.4% Chinese economy and negative reperc
Slide 8: Real Estate Market
Real Estate Market Sound Fundamentals and Leasing Activity Supported the German Office Space Leasing activity in German office market remained healthy in 2018, with the annual office space take-up in the Top 5 locations of Berlin, Düsseldorf, Frankfurt am Main, Hamburg and Munich totalling 3.4m sqm,
Slide 9: Portfolio Overview
Portfolio Overview 2 Bonn Campus 9
Slide 10: Portfolio Overview
Portfolio Overview Strategic Assets in German Cities of Berlin, Bonn, Darmstadt, Münster and Munich No. of Properties 5 Net Lettable Area c. 200,600 sqm Münster Campus Berlin Campus Value: €49.5m Value: €190.7m Car Park Spaces NLA: 27,183 sqm NLA: 79,097 sqm c. 3,400 Appraised Value1 €504.9m WALE2 4
Slide 11: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) Blue-Chip Tenant Mix Stable Leases Top Five Tenants 1 Lease Break & Expiry Profile Weighted Average Lease Expiry: 4.4 years1 3.3% 2.6% 38.8% 3.7% 4.4% 35.0% 31.0% 28.8% 51.9% 23.8% 23.8% 34.0% 6.2% 3.8% 3.8% 4.6% 0.0% 0.0% GMG - Deutsche Telekom Deutsche Rentenversicherun
Slide 12: Berlin Campus
Berlin Campus Property in Highly Sought-after Market with Excellent Transport Connectivity to City Centre Key Highlights Berlin Campus is located in Berlin-Lichtenberg and is part of the Victoriastadt sub-district. The Victoriastadt sub-district is in immediate proximity to the city district of Medi
Slide 13: Bonn Campus
Bonn Campus Property Strategically Located Opposite Deutsche Telekom Global Headquarter Office Key Highlights Centrally located in Bonn’s prime office area of Bundesviertel (federal quarter), Bonn Campus is well served by regular bus and train services. The property is fully let to GMG Generalmietge
Slide 14: Darmstadt Campus
Darmstadt Campus Attractive Property in a Key Telecommunications Office Cluster Key Highlights Located in the TZ Rhein Main Business Park, around 30km south of Frankfurt, Darmstadt Campus is a convenient 100m from the nearest bus stop and 600m from the Darmstadt central railway station. The property
Slide 15: Münster Campus
Münster Campus Property Located in Good Secondary Market and Rented by Blue-chip Tenant Key Highlights Münster Campus is situated in the sub-market “Zentrum Nord”, one of the largest office locations in Münster, and is near to the train station. The city of Münster can be considered as a well-positi
Slide 16: Concor Park
Concor Park Fully Refurbished Multi-let Property Located Near City Limits of Germany’s 3rd largest City Key Highlights Fully refurbished with modern office features in 2011, Concor Park operates as a multi-tenanted office property with a central canteen and a coffee bar. The property is located with
Slide 17: Financial Highlights
Financial Highlights 3 Darmstadt Campus 17
Slide 18: Operating & Financial Performance
Operating & Financial Performance (€ ‘000) FY2018 FY2017 Variance (%) Gross Revenue 34,808 34,959 (0.4) Property Operating Expenses (4,178) (3,431) 21.8 Net Property Income 30,630 31,528 (2.8) Income Available for Distribution 25,146 25,976 (3.2) Income to be Distributed to Unitholders 22,631 23,378
Slide 19: Distribution Per Unit
Distribution Per Unit Distribution per Unit FY2018 FY2017 Variance (%) Before Retention - € cents 3.99 4.15 (3.9) - S$ cents1 6.46 6.44 0.3 After Retention - € cents 3.59 3.72 (3.5) - S$ cents1 5.80 5.77 0.5 DPU in S$ terms was supported by favourable SGD/EUR exchange rates arising from the hedgin
Slide 20: Financial Position
Financial Position € ‘000 As at 31 Dec 2018 As at 31 Dec 2017 Variance (%) Investment Properties 504,900 463,100 9.0 Total Assets 528,875 486,755 8.7 Borrowings 193,215 195,476 (1.2) Total Liabilities 223,268 218,064 2.4 Net Assets Attributable to Unitholders 305,607 268,691 13.7 NAV per Unit (€/uni
Slide 21: Capital Management
Capital Management Before After Debt Maturity Profile As at 31 Dec 2018 Refinancing Refinancing €’million After refinancing (as at 1 Feb 2019) Actual Pro-forma Gross Borrowings 200.8 193.5 200.8 Outstanding (€’m) Before refinancing (as at 31 Dec 2018) Aggregate Leverage1 36.6% 37.8% 96.6 96.9 Effect
Slide 22: Forex Risk Management
Forex Risk Management Use of €-denominated borrowings acts as a natural hedge to match the currency of assets and cashflows at the property level Distributable income in € will be paid out in S$. From FY2019, in accordance with its currency hedging policy, IREIT will be hedging approximately 80%
Slide 23: Looking Ahead
4 Looking Ahead Münster Campus 23
Slide 24: Looking Ahead
Looking Ahead 2018 has been an eventful and successful year with the implementation of key initiatives which have helped the portfolio achieve higher occupancy rate and further increase in portfolio value, as well as secure long-term debt at attractive rates Now Tikehau Capital’s acquisition of
Slide 25: Thank You
Thank You For enquiries, please contact: IREIT Global Group Pte. Ltd. A subsidiary of Tikehau Capital (As manager as IREIT Global) Tel: +65 6718 0590 Email: ir@ireitglobal.com 25