Ronesans Gayrimenkul Yatirim A.S. · BIST:RGYAS
Ronesans Gayrimenkul Yatirim A.S — Rönesans Gayrimenkul Yatırım A.Ş. — H1 2018 Earnings Presentation
25 slides from Ronesans Gayrimenkul Yatirim A.S's earnings presentation, Aug 17, 2018
Slide 1: Investor Presentation First Half Results 2018
INVESTOR PRESENTATION First Half Results – 2018 August 17, 2018
Slide 2: Disclaimer
DISCLAIMER This document was prepared by Rönesans Gayrimenkul Yatırım (“RGY” or “the Company”) solely for use of presenting the first-half 2018 results published on August 17, 2018. This document is not to be reproduced or distributed, in whole or in part, by any person other than the Company. The C
Slide 3: Macroeconomics and Retail Market
MACROECONOMICS AND RETAIL MARKET
Slide 4: Macroeconomics
MACROECONOMICS 8.5% Turkey - Annual GDP Growth 6.1% 7.4% 7.4% 4.8% 5.2% 3.2% 2012 2013 2014 2015 2016 2017 1Q 2018 The Turkish economy recorded 7.4% growth in the first quarter of 2018, beating the expectations. Domestic consumption and investments were the main drivers fueling the growth. (1) FX Ra
Slide 5: Retail Market
RETAIL MARKET 396 12.3m sqm 153 sqm Shopping Centers (1) Total GLA (1) GLA per 1000 persons (1) Total supply has reached 12.3m sqm for 396 shopping centers Turkish Retail Market (1) as of the first half of 2018 while İstanbul holds 37.5% of total retail 11.8m 12.3m 10.8m space. (1) 9.9m Only 111 of
Slide 6: Portfolio Overview
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Slide 7: Overview
OVERVIEW Rönesans GayrimenkulYatırım A.Ş. (“RGY”) is a leading Turkish commercial property company with a portfolio consisting of 11 yielding shopping centres and 2 offices with total GLA of 697k sqm and 90 million expected visitors in 2018. GAV by Location RGY strategically focuses on investing in
Slide 8: Shareholders
SHAREHOLDERS Other Rönesans Emlak Geliştirme Holding 4.32% 74.24% GIC 21.44% Rönesans Emlak Geliştirme GIC Other 74.24 % 21.44 % 4.32 % Rönesans Holding is a shareholder Government of Singapore Management team (1) of RGY, via Rönesans Emlak Investment Corporation (GIC) is a Geliştirme Holding. globa
Slide 9: Footprint
KÜÇÜKYALI OFFICE & HILLTOWN FOOTPRINT SCHOOL GLA (’000 sqm) (2) 72 PIAZZA SAMSUN & HOTEL Attractive locations GLA (’000 sqm) (5) 54 GAV (€ mm) (2) 336 GLA (’000 sqm) (1) 63 easily accessible by GAV (€ mm) 117 Distance from station 300 m GAV (€ mm) 215 public transportation Distance from station 500
Slide 10: Asset Metrics
ASSET METRICS Occupancy (1) 97.3% 96.6% 96.6% 96.3% 96.1% 96.0% Occupancy levels remain above 95% despite currency 95.7% depreciation. (1) 2012 2013 2014 2015 2016 2017 1H2018 RGY holds a diversified portfolio and does not have significant exposure to any single asset or tenant. Top 3 assets make up
Slide 11: Effects of TRY Depreciation
EFFECTS OF TRY DEPRECIATION Due to its business model, large majority of RGY’s rental contracts are denominated in EUR or in USD (for Optimum Ankara and Maltepe Park) creating a contractual hedge for RGY. Occupancy Cost Ratio (1) Having said that, in periods of significant TRY depreciation, Sustaina
Slide 12: Asset Metrics
ASSET METRICS Tenants' Turnover per sqm ₺ 847 Tenants’ turnover per sqm at the shopping centers grew by 11.4% ₺ 760 in the first half of 2018 compared to the same period in the previous year on a like-for-like (1) basis. The growth was in line with the 1H2017 Like-for-like 1H2018 average inflation w
Slide 13: Asset Metrics
ASSET METRICS Lease Expiry Schedule by GLA Jun 2018 56% WAULT is 7.1 years. Weighted average unexpired lease term stands at 7.1 years while the majority of lease contracts (56%) will 15% expire after 5 years thanks to long term contracting 8% 12% 5% profile. 3% 0 to 1 year 1 to 2 years 2 to 3 years
Slide 14: NOI Growth
NOI GROWTH Asset NOI grew by 69% in the first half of 2018, compared to the previous year. (1) Openings of Optimum İzmir Extension, Hilltown and Maltepe Piazza, acquisitions of 50% stake of Optimum Adana, Piazza Samsun, Piazza K.Maraş and Kozzy are the main pillars of the substantial growth. In the
Slide 15: Acquisitions
ACQUISITONS Asset Ex-Owner Stake Date GLA Type Status Samsun Piazza AGP Stake 50% >> 100% Jan’18 62,900 Retail & Hotel Yielding K.Maraş Piazza AGP Stake 50% >> 100% Jan’18 48,100 SC Yielding Kozzy AGP Stake 50% >> 100% Jan’18 14,700 SC Yielding Maltepe Park CarrefourSA 100% Jun’18 81,900 Retail & Of
Slide 16: Openings
OPENINGS GLA (sqm) 51,300 (Retail) 37,100 (Office) (1) Occupancy at Opening 96% (2) Residences Pre-sold 86% (Total: 225 units) Opening Date April 2018 Ownership RGY 100% Maltepe Piazza Mixed-Use İstanbul,Turkey (1) Office construction ends by year-end. No pre-lease yet. (2) Only retail part 16
Slide 17: Under Construction
UNDER CONSTRUCTION Type Retail GLA (sqm) 62,900 Pre-lease 39% Expected Opening Date April 2019 Investment Budget (exc.VAT) € 233m Ownership RGY 100% Karşıyaka Hilltown İzmir, Turkey 17
Slide 18: Debt Profile
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Slide 19: Debt Profile
DEBT PROFILE Debt Movement (1) 1H2018 245 € 2€ 1093 € 72 € 61 € 840 € 75 € 31 € 21 € Stake-adjusted total debt of RGY has risen to €1,093m as of Jun 30, 2018 from €840m at 2017 year-end. (1) Dependency on local and secured financing has decreased in the last three years. The Dec'17 Acquisition New E
Slide 20: Loan Profile
LOAN PROFILE All-in Cost of Debt (€) & Average Maturity (1) (2) 7.0 5.5% 6.5 5.6% 5.0% 5.7 6.0 5.0% 5.6 Cost of debt in EUR has been reduced by 110 5.5 4.5% bps since 2015 through access to low-cost 5.4 4.5% 4.5% 5.0 financing. 4.0% 4.8 4.5 3.5% 4.0 2015 2016 2017 2018/06 Only 20% of current €1,093m
Slide 21: Eurobond & Ratings
EUROBOND & Further to sovereign rating RATINGS downgrade in July, RGY was Ba3 BB downgraded to BB by Fitch First Eurobond issue of a Turkey Ba3 BB as well. Moody’s followed the real estate company in same path in August and downgraded both sovereign Turkey and RGY to Ba3. Amount $ 300m (Swap. € 245m
Slide 22: Covenants
COVENANTS LTV covenant for Eurobond is 60%, while the current level is 1H2018 (000) TRY EUR 43.1% for the first half of 2018. Total Assets (1) 14,702,752 2,769,297 Short term portion of long term financial debts (2) 277,860 52,336 Long term financial debts (2) 4,419,560 832,434 Short Term Borrowings
Slide 23: Covenants
COVENANTS Combined coverage ratio covenant for Eurobond is 1.5x, while the 1H2018 (000) TRY EUR current level is 2.85x for the first Gross Profit (1) 249,279 50,446 half of 2018. Operating Expense (2) (25,707) (5,202) VAT Recovery (3) 29,606 5,991 Combined Adjusted EBITDA 253,178 51,235 Interest Exp
Slide 24: Covenants
COVENANTS As of 2018 first-half end, it is estimated that total gross asset 1H2018 (000) TRY EUR value of unencumbered assets to be Unencumbered Total Assets (1) 4,333,830 816,287 equal to 2.79 times of total Short term portion of issued bond (2) 17,617 3,318 unsecured debt where the covenant Long t
Slide 25: Contact
CONTACT Sercan Yüksel CFO sercan.yuksel@rgy.com.tr Investor Relations investor.relations@rgy.com.tr Rönesans GayrimenkulYatırım Küçükbakkalköy Mahallesi, Kayışdağı Caddesi No: 1, Ataşehir, İstanbul, 34750,Turkey Phone: +90 312 430 6000 Fax: +90 312 430 6902 Portakal Çiçeği Sokak No:33 Y. Ayrancı, Ça
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