Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — FY2016 Earnings Presentation
48 slides from Nextensa's earnings presentation, Feb 16, 2017
Slide 1: Financial results FY16
Financial results FY16 16 February 2017
Slide 2: Contents
Contents 01 l Company profile 02 l History 03 l Strategic vision 04 l Activity overview FY 2016 05 l Financial results FY 2016 06 l Share performance & reporting Appendices Leasinvest.be
Slide 3: Company profile
Company profile
Slide 4: Company Profile
Company Profile 6th largest BE-REIT/SIR/GVV 2nd largest real estate investor in Luxembourg listed on Euronext Brussels Fair value portfolio 12/2016 (incl. stake in Retail Estates) € 930.7M Market capitalization € 498 M Shareholders Ackermans & van Haaren (AvH) 30% AXA Belgium 29% Free float 41% In
Slide 5: Corporate Structure
Corporate Structure Ackermans & van Haaren AXA 30% 29% 100% Leasinvest Real Estate Comm. VA Leasinvest Real Estate Management NV = BE REIT/SIR/GVV = asset management for LRE & LIL = buildings in Belgium in Belgium in Grand-duchy of Luxembourg in Switzerland in Austria Leasinvest Services NV 99% 100%
Slide 6: Leasinvest at a glance
Leasinvest at a glance Occupancy Cost of debt 96.80% 2.90% Rental yield Average duration debt 6.78% 3.94y WALT Debt ratio 4.37y 58.05% Leasinvest.be FY16 results| Leasinvest | 6
Slide 7: Portfolio Breakdown
Portfolio Breakdown Luxembourg Belgium Switzerland Austria Total Fair value (million €) 421 357 44 37 859 Retail 278,5 50 44 37 410 Offices 123,5 195 - - 319 Logistics/semi-industrial 19 112 - - 131 Number of sites 15 13 3 1 32 Duration leases till first break 4.50y 4.08y 4.73y 1.98y 4.37y Occupancy
Slide 8: History
History
Slide 9: Milestones
Milestones 1999 - Acquisition of 2 2014 - Acquisition of retail Belgian real estate portfolios portfolio for € 40M from (Extensa & Brixton) forming Redevco (Switzerland) Leasinvest RE 2016 - acquisition of 18,000m² retail park 2006 - Acquisition of in Austria for € 37M Dexia Immo Lux SA for € 150M 2
Slide 10: Milestones
Milestones 51,7% 34,2% 14,1% Leasinvest.be FY16 results| Leasinvest | 10
Slide 11: Strategic Vision
Strategic Vision
Slide 12: Strategic Vision
Strategic Vision Investment strategy Development strategy Commercial strategy Financial strategy OPPORTUNITY DRIVEN ORGANIC (RE)DEVELOPMENTS MAXIMIZE LEASE DURATION & MINIMIZE COST OF DEBT OCCUPANCY RATE SECURE EQUITY & DEBT FINANCING Retail LU-BE-CH-AT Generating capital gains Offices LU - BE Impro
Slide 13: Shrewd acquisitions
01 Shrewd acquisitions Montoyer Brussels CBD (BE) Frun Park, Retail reconstruction by 2018 Park Asten (AU) 2016: 21y usufruct with EP R20, Bd Royal (LU) strengthening of capital gain expected old hotel => new offices geographical Metro Group retail (LU) 2016: capital gain € 22M diversification portf
Slide 14: Creating value
02 Creating value (in € M) 400 350 300 250 200 150 100 50 0 -50 -100 -150 -200 -250 Leasinvest.be FY16 results| Leasinvest | 14
Slide 15: Steady occupancy rate & rental duration
03 Steady occupancy rate & rental duration Luxembourg Belgium Switzerland Austria Total Total 2016 2015 Duration (years) Occupancy (%) Retail 98.9% 100% 100% 100% 99.1% 98.8% Offices 96.4% 91,2% 93.6% 92.8% Logistics 100% 96.3% 97.2% 94.9% Country 98.3% 93.9% 100% 100% 96.8% 95.8% Retail 5.2 4.7 4.7
Slide 16: Diversified tenant base
Diversified tenant base Tenants’ Retail Industry detailed Leasinvest.be FY16 results| Leasinvest | 16
Slide 17: Funding characteristics
04 Funding characteristics Funding diversification • Cost of debt at 2.90% (2015: 3.38%) decreased through lower banking margins & extension existing hedging contracts • Total committed lines incl. bonds: €608M (2015: €568,7M) • Duration credit facilities: 3,94y 2016 (2015: 2,96) • Available headroo
Slide 18: Hedging strategy
04 Hedging strategy • Debt financing at end 2016 – 78% hedged (fixed ratio below) • Fixed rate debt (29%), interest rate swaps (41%) and cross currency swaps EUR/CHF (8%) • Duration: 6.30y (2015: 6.58y) Leasinvest.be FY16 results| Leasinvest | 18
Slide 19: Proposed dividend
05 Proposed dividend • Gross dividend 2016 increased +4.26% to €4.90 over 2016 (2015: €4.70) • Net dividend amounted to €3.43 (excl. 30% WHT), equaling 2015 €3.43 (excl. 27% WHT) • Gross dividend yield of 4.64% (31/12/2016) • Consolidated pay-out ratio 2016: 86.90% (2015: 90.00%) 85,00 6,00 80,00 5,
Slide 20: Activity overview FY 2016
O4 Activity overview FY 2016
Slide 21: Highlights FY16
Highlights FY16 KEY FIGURES • Increase rental income from €50.5M to €56.6M (+12%) – like-for-like stable increase of 1% • Higher net result from €30,6M to €31,1M (+2%) • Increase of EPRA Earnings to €27.9M or €5.65 per share (+ 9%) INVESTMENTS • Acquisition important retail park in Austria and stren
Slide 22: Acquisition retail park in Austria
Acquisition retail park in Austria • Acquistion on 8/11/2016 of retail park Frun® Park Asten located in Asten/Linz in Austria for €37M • Annual rental income of €2.3M or gross starting yield of 6% • The retail park was developed by De Vlier, a Belgian retail developer active in Belgium, France & Aus
Slide 23: Disposal of Royal 20
Disposal of Royal 20 • Successful completion of development project Royal 20. • 30/06/2016: Royal20 sold for €62.5M at reception of the building according to agreement concluded in 1H 2015. • Sale was opportunity-driven o 100% pre-let to China Merchants Bank (€3M rent, 10y) o important capital gain
Slide 24: Possible disposals in 2017
Possible disposals in 2017 • NDA signed with international investment fund for acquiring 3 logistic buildings in Wommelgem, Canal Logistics (phase 1) and SKF site in Tongres • Closing foreseen in Q2 2017 • Results of negotiations about other non strategic buildings & warehouses will be communicated
Slide 25: Redevelopment Retail Park Strassen
Redevelopment Retail Park Strassen • Existing Einkaufszentrum Strassen (Route d’Arlon) being renovated into Retail Park Strassen with shops & restaurant • Retail project of 22,721 m² redevelopment in 2 phases (1st phase finished Q2 2017 & 2nd phase starts in 2020). • 1st phase: started & to be final
Slide 26: Redevelopment Montoyer 63
Redevelopment Montoyer 63 • Sitting tenant European Parliament signed 21y fixed usufruct contract • Building vacant: 12/2016 • Demolish as of Q1 2017 & fully reconstructed by Q3 2018 • Office project of 6,052 m² • BREEAM ‘excellent’ expected • One of few new buildings in CBD Brussels • Design SVR Ar
Slide 27: Redevelopment Treesquare
Redevelopment Treesquare • Building at Square de Meeûs vacant as of 07/2015 • Office project of 5,936 m² • Reconstruction works started in September 2016 to be finished Q4 2017 • BREEAM ‘excellent’ expected • Design: Assar Architects (Brussels) • One of few new buildings in Brussels CBD • Foreseen c
Slide 28: Financial results FY 2016
O 5 Financial results FY 2016
Slide 29: Key consolidated financials FY16
Key consolidated financials FY16 Key figures balance sheet 31/12/2016 31/12/2015 Net asset value group share (€ 1,000) 356 407 362 405 Net asset value group share per share 72.2 73.4 Net asset value group share per share based on investment value 75.6 76.9 Net asset value group share per share EPRA
Slide 30: EPRA KPI's FY2016
EPRA KPI’s FY2016 EPRA PERFORMANCE MEASURES 31/12/2016 31/12/2015 EPRA Earnings (in € per share) 5.65 5.18 EPRA NAV (in € per share) 82.0 81.2 EPRA NNNAV (in € per share) 72.2 73.4 EPRA Net Initial Yield (in %) 5.82% 6.06% EPRA Topped up Net Initial Yield (in %) 5.86% 6.10% EPRA Vacancy (in %) 2.87%
Slide 31: Consolidated income statement
Consolidated income statement Consolidated statement of realized and unrealized results (in 1,000 €) 31/12/2016 31/12/2015 (+) Rental income 56.647 50,455 (+) Write-back of lease payments sold and discounted 0 0 (+/-) Related-rental expenses -179 -42 NET RENTAL INCOME 56,468 50,413 (+) Recovery of p
Slide 32: Consolidated balance sheet
Consolidated balance sheet ASSETS (in 1,000 euro) 31/12/2016 31/12/2015 LIABILITIES (in 1,000 euro) 31/12/2016 31/12/2015 TOTAL SHAREHOLDERS’ EQUITY 356,407 362,410 I. NON-CURRENT ASSETS 896,179 954,243 I. SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO Intangible assets 4 10 THE SHAREHOLDERS OF THE PARENT COM
Slide 33: Outlook financial year 2017
Outlook financial year 2017 • After the extraordinary good results of 2016 the company expects for 2017 EPRA Earnings in line with the previous years. Consequently, the company foresees to maintain the dividend over 2017 at the same level. Leasinvest.be FY16 results| Leasinvest | 33
Slide 34: Share performance & reporting
Share performance & reporting
Slide 35: Share performance
Share performance 120,00 110,00 100,00 90,00 80,00 70,00 60,00 50,00 40,00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Share price LRE NAV LRE (fair value) NAV LRE (EPRA) 220,00 200,00 180,00 160,00 140,00 120,00 100,00 80,00 60,00 40,00 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 36: Share performance
120 160 200 240 280 320 80 2-07-2001 Leasinvest.be 2-10-2001 2-01-2002 2-04-2002 2-07-2002 2-10-2002 2-01-2003 2-04-2003 2-07-2003 2-10-2003 2-01-2004 2-04-2004 2-07-2004 2-10-2004 2-01-2005 2-04-2005 2-07-2005 2-10-2005 2-01-2006 share price LRE 2-04-2006 2-07-2006 2-10-2006 2-01-2007 2-04-2007 2-0
Slide 37: Share performance
Share performance Leasinvest.be FY16 results| Leasinvest | 37
Slide 38: Analyst recommendations
Analyst recommendations Bank Analyst Recommendation Target price Date Bank Degroof Petercam Herman van der Loos Add € 111.00 18/11/2016 KBC Securities Koen Overlaet-Michiels Hold € 100.00 16/02//2017 ING Securities Jaap Kuin Hold € 96.00 16/02/2017 Financial calendar 31/03/2017 Annual financial repo
Slide 39: Appendices
~~ Appendices
Slide 40: Our main Luxembourg buildings
Our main Luxembourg buildings OFFICE - Montimmo - Shopping center Knauf RETAIL Pommerloch Avenue Monterey, CBD North of Luxembourg RETAIL - Strassen Acquisition: 2008 Acquisition: 2013 2 phase renovation 2017-2020 Route d'Arlon Acquisition: 2008 (Metro Lux) - Shopping center Knauf RETAIL OFFICE - Ke
Slide 41: Our main Belgian buildings
Our main Belgian buildings OFFICE RETAIL OFFICE - The Crescent Anderlecht - Tour & Taxis Avenue du Port 86C - Brussels Lenniksebaan 451 - Anderlecht Acquisition: 2015 Acquisition: 2004 OFFICE - Motstraat Motstraat 30 - Mechelen Acquisition: 2002 RETAIL LOGISTIC - Brixton Business Park Brixtonlaan 1-
Slide 42: Our main Swiss and Austrian buildings
Our main Swiss and Austrian buildings RETAIL - Etoy - CH Route de Buchillon 2 Acquisition: 2014 RETAIL - Yverdon-les-Bains - CH Rue du lac 12 Acquisition: 2014 RETAIL - Villeneuve - CH Route des Paquays Acquisition: 2014 RETAIL - Frun Park Asten - AU Handelsring 8-10 Asten Acquisition: 2016 Leasinve
Slide 43: Ackermans & Van Haaren
Ackermans & Van Haaren www.avh.be Ackermans & van Haaren (AvH) with a market cap in excess of € 4.2 billion (11/2016) is a diversified group active in 5 key sectors: - Infrastructure & Marine Engineering (DEME, one of the largest dredging companies in the world, CFE and Van Laere, two Belgian constr
Slide 44: Board of Directors Leasinvest
Board of Directors Leasinvest Directors nominated by AvH Jan Suykens chairman LRE, CEO & chairman Executive Committee Ackermans & van Haaren Piet Dejonghe member Executive Committee Ackermans & van Haaren Jean-Louis Appelmans executive director - CEO Leasinvest Real Estate Michel Van Geyte executive
Slide 45: Notes
Notes Leasinvest.be FY16 results| Leasinvest | 45
Slide 46: Notes
Notes Leasinvest.be FY16 results| Leasinvest | 46
Slide 47: Notes
Notes Leasinvest.be FY16 results| Leasinvest | 47
Slide 48: About Leasinvest
www.leasinvest.be About Leasinvest Regulated real estate company BE REIT Leasinvest Real Estate SCA invests in high quality and well- located retail buildings, offices and logistics buildings in the Grand Duchy of Luxembourg, in Belgium, in Switzerland and in Austria. At present the total fair value
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