Wereldhave N.v. · EURONEXT:WHA
Wereldhave — FY2011 Earnings Presentation
44 slides from Wereldhave's earnings presentation, Feb 13, 2012
Slide 1: Investor presentation FY 2011 results
Investor presentation FY 2011 results
Slide 2: Recent highlights
Recent highlights • Itakeskus refurb & extension scaled up → extension 11.000 sqm in total; anchor tenant will relocate (to Piazza); investment volume € 90m, YoC 6.0- 6.5% • Planetocio refurb well on track: new anchor tenant signed. Opening planned for mid-2012 • Sale non-strategic assets in Q4 in t
Slide 3: FY 2011 key figures
FY 2011 key figures • Direct result p/s: € 4.93 (-3.3% yoy) • Total result p/s: € 2.38 • Revaluation portfolio: -1.6% • NAV p/s: € 73.44 (-2.2% yoy) • Dividend € 4.70 (0% yoy) • Investment portfolio: € 2,862m (0.1% yoy) • Committed development pipeline: € 506m • Occupancy 91.4% (EPRA) • LTV 41% 3
Slide 4: Strategy implementation 2009-11
Strategy implementation 2009-11 Dec 09 Dec 11 progress Shopping centres 50-60% 46% 57% Focus per country >80% excl Spain, Belgium Portfolio size per country > € 400m All, excl Spain LTV 35-45% 28% 41% Stable and growing DR p/s 4.93 4.93 ≈ Stable and growing Dividend p/s 4.65 4.70 Payout 85
Slide 5: Ready for the next step
Ready for the next step • Asset sales 2010-2011 ± € 260m; Acquisitions assets and developments > € 900m (total investment volume) • Management organization strengthened and tailored towards investment, (re)development and active management of shopping centres in the Netherlands, Belgium, Finland and
Slide 6: Country update
Country update • Finland: Itakeskus refurb & extension enlarged to € 90m • Netherlands: update active asset mngt and redevelopment program • France: Noda acquisition and new anchor tenant at Dunkirk shopping centre • Spain: Planetocio progress • Belgium: completion and launch of Nivelles shopping ce
Slide 7: Total result (€ m)
Total result (€ m) FY 2011 FY 2010 yoy Direct result 113.4 115.9 -2.1% Indirect result -50.4 -20.8 -142.8% Profit 63.0 95.1 -33.8% Minority interest 11.7 6.4 80.9% Profit for shareholders 51.3 88.7 -42.1% 7
Slide 8: Direct result (€ m)
Direct result (€ m) FY 2011 FY 2010 yoy Gross rental income 208.2 205.7 1.2% Operational costs -44.6 -45.5 -1.8% Net rental income 163.6 160.2 2.1% General costs -16.0 -15.0 6.7% Other 1.7 0.8 103.7% Net financial costs -34.6 -26.5 30.4% Taxes -1.3 -3.6 -64.0% Direct result 113.4 115.9 -2.1% Minorit
Slide 9: NRI bridge (€ m)
NRI bridge (€ m) 190 -7.1 11.1 170 1.2 -1.8 163.6 160.2 150 130 110 90 70 50 NRI FY 2010 Acquisitions Disposals Like for like Currencies NRI FY 2011 9
Slide 10: Net rental income (€ m)
Net rental income (€ m) FY 2011 % total yoy l-f-l Total 163.6 100% 2.1% 0.9% Belgium 24.6 15.0% 4.5% 0.5% Finland 28.6 17.5% -2.7% -0.7% France 12.2 7.4% 45.6% 45.6% The Netherlands 38.6 23.6% 1.0% -1.3% Spain 7.6 4.6% -12.7% -12.7% United Kingdom 18.9 11.6% 17.5% -3.8%* U.S.A. 33.1 20.3% -7.7% -2.7
Slide 11: Occupancy (EPRA)
Occupancy (EPRA) Retail Office Other Total Total Dec 2011 Dec 2010 Belgium 99.9% 83.1% - 93.1% 87.4% Finland 96.5% - - 96.5% 98.0% France 90.8% 99.1% - 98.1% 97.9% The Netherlands 96.5% 91.7% 89.1% 95.6% 98.2% Spain 42.9% 90.3% 100% 76.9% 85.7% United Kingdom 98.9% 100% 100% 99.1% 91.1% U.S.A. 65.4%
Slide 12: Lease expiry
Lease expiry (rent as % of contracted rent in December 2011) 20% 0.8% 18% 16% 6% 14% 0.8% 0.9% 0.3% 12% 7% 4% 10% 5% 6% 8% 13% 0.6% 6% 11% 9% 3% 4% 7% 7% 3% 6% 1% 2% 3% 1% 2% 2% 1% 0.3% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 > 2020 Retail Offices Other Leases without end date and residentia
Slide 13: Indirect result
S AND RESIDENTIAL TY DEVELOPMENT SHOPPING CENTRES WERELDHAVE Indirect result (p Wereldhave. Value for tomorrow.
Slide 14: Indirect result (€ m)
Indirect result (€ m) FY 2011 FY 2010 Revaluation -51.4 -14.1 Results on sales -4.1 2.5 Deferred tax 13.2 -2.6 Net financial costs -4.4 -3.4 Other -3.7 -3.2 Indirect result -50.4 -20.8 Minority interest 4.7 -0.5 Shareholders -55.1 -20.3 14
Slide 15: Yield movements & cap rates FY 2011
Yield movements & cap rates FY 2011 Retail Office Other Resi Cap rate Belgium 0.0% 0.0% - - 6.3% Finland -0.1% - - - 5.8% France 0.0% 0.0% - - 6.0% The Netherlands 0.0% 0.5% -0.1% - 6.1% Spain 0.0% -0.4% -0.3% - 7.0% United Kingdom -0.1% -1.8% 0.0% - 6.2% U.S.A. 0.3% -0.2% - 0.0% 6.6% Cap rate 6.0%
Slide 16: Revaluation FY 2011
Revaluation FY 2011 Yield effect - Rent & Other effect TOTAL -1.3% 0.3% USA -4.3% -0.3% GBR -0.5% 1.3% ESP -8.0% 4.0% NLD 0.0% -0.3% FRA 0.0% 2.3% FIN 0.0% 0.1% BEL 0.0% 1.1% -8% -6% -4% -2% 0% 2% 4% BEL FIN FRA NLD ESP GBR USA TOTAL YIELD 0.0% 0.0% 0.0% -0.3% 4.0% 1.3% -0.3% 0.3% MR /OTHER 1.1% 0.1
Slide 17: Balance sheet & Debt profile
DEVELOPMENT SHOPPING CENTRES S AND RESIDENTIAL WERELDHAVE Balance sheet & Debt profile (p Wereldhave. Value for tomorrow.
Slide 18: Sound balance sheet (€ m)
Sound balance sheet (€ m) 2011 2010 2009 Total assets 3,250.2 3,121.8 2,597.0 Interest bearing debt long -1,224.1 -876.9 -572.1 Interest bearing debt short -65.0 -271.1 -140.8 Deferred tax liabilities -115.8 -129.3 -119.0 Other liabilities -131.3 -116.4 -78.6 Equity 1,714.0 1,728.1 1,686.5 NAV per s
Slide 19: Debt: conservative ratios at low cost
Debt: conservative ratio’s at low cost • Interest bearing debt: € 1,289m (2010: € 1,174m)* • Fixed/floating: 44%/56% (Dec 10: 57%/43%) • Average cost: 3.0%* (Dec 10: 2.6%) • LTV: 41% (EPRA) (Dec 10: 37%) • ICR: 5.4x (Dec 10: 6.8x) * On nominal basis. On IFRS basis: 3.2% (Dec 2010: 3.2%) 19
Slide 20: Debt profile December 2011
Debt profile December 2011 Type of debt Maturity profile total 1,289m* 600 497 mortgages 3% 500 US PP 18% 400 332 300 276 bank loans (unsecured) convertible 43% bond 09-14 200 18% 82 84 100 65 2 40 26 convertible 9 bond 10-15 0 18% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 debt undrawn * on
Slide 21: Future: 2012
Future: 2012 • Start sale US portfolio and further sales non-core assets in Europe • Reinvestment in Western Europe • Project completion of Nivelles in March, Eilan in April, Planetocio in July and Richmond in September • Start construction of projects in Joinville (Fra), Tournai, Genk (Bel) and Ita
Slide 22: Special topics
SHOPPING CENTRES S AND RESIDENTIAL TY DEVELOPMENT WERELDHAVE Special topics (p Wereldhave. Value for tomorrow.
Slide 23: Special topics
Special topics • ‘Portal to Commerce’ update • Itakeskus scaling up refurbishment & extension • Nivelles I: project completion and launch • Development pipeline overview 23
Slide 24: Portal to Commerce update
Portal to Commerce update Wereldhave 1.5, first effect: Active websites per mall Pages per shop with entrance to own website / -shop 520 twitter accounts, 520 Foursquare checkins, 7 Facebook pages Wifi in all malls, including traffic reports Daily offers, interactivity between tenants and customers
Slide 25: Visit www.eggertwinkelcentrum.nl
Visit www.eggertwinkelcentrum.nl 25
Slide 26: Other shopping centres to follow in Q1
Other 7 shopping centres to follow in Q1 26
Slide 27: Other NL websites to follow in Q1
Other 7 NL websites to follow in Q1 27
Slide 28: Wereldhave 2.0
Wereldhave 2.0 Wereldhave 2.0 Integrated shopping portals 28 (U1) (@ Wereldhave. Value for tomorrow. WERELDHAVE
Slide 29: Itakeskus refurbishment & extension
Itakeskus refurbishment & extension • Largest shopping centre in Finland with 96,500 sqm GLA; • Valuation Dec 2011: €450m @ 5.75% NIY • Tenant reconfiguration, Refreshment and Extension-project • Adding 11,000 sqm lettable area internally • Investment volume ca. €90 million in 2011-14 @ 6.0-6.5% YoC
Slide 30: Relocation anchor tenant to Piazza area
Relocation anchor tenant to Piazza area • Being located at end of the centre behind an existing firewall, footfall in the Piazza historically has not been optimal • The anchor tenant will be relocated to the reconfigured Piazza to truly anchor the shopping centre • Ca. 12,000 sqm valuable leasing ar
Slide 31: Refreshment works
Refreshment works Refreshment works target to improve visibility and state of the art look & feel for customers and existing and new retailers. Works include e.g. • All parking areas • Redecoration of all major retail areas • Improvement of shop fronts • New lightning throughout the centre 31
Slide 32: Floor Plan Level 1
Floor Plan Level 1 After Before 32
Slide 33: Nivelles, Grand opening 30 March
Nivelles, Grand opening 30 March 33
Slide 34: Shopping centre refurb & extension
Shopping centre refurb & extension Planning: -Refurbishment existing space: 16,195 m2 completed 2008 -Extension I: adding 12,414 m2 GLA, completion March 2012 -Extension II: Retail Park ca. 8,000 m2 GLA , completion 2014 Investment: Extension I: € 44 mln at YoC of 8.0%; 95% pre-let Tenants: H&M, JBC
Slide 35: Nivelles, Belgium
Nivelles, Belgium (@ Wereldhave. Value for tomorrow.
Slide 36: Development pipeline
DEVELOPMENT SHOPPING CENTRES S AND RESIDENTIAL WERELDHAVE Development pipeline (p Wereldhave. Value for tomorrow.
Slide 37: Committed development pipeline
Committed development pipeline Project Location Total Capex sofar Expected net Estimated Remarks investment yield completion San Antonio I* Texas, US $ 200m/€ € 123m*** 6.75-7.25% Q4 2011 - Q1 20 yr fixed term lease signed for 140m 2012 hotel; soft opening 2 Feb Nivelles I Belgium € 44m € 44m*** 8.0
Slide 38: Uncommitted development pipeline
Uncommitted development pipeline Project Location Total Capex Expected net Estimated Remarks investment sofar yield completion Gent Belgium € 15m € 2m 6.75-7.0% 2013 Mixed-use; 50% retail Tournai I Belgium € 16m € 3m 7.0-7.25% 2014 Building permit request will (Retail park) be submitted in Q1 2012 G
Slide 39: San Antonio, progress report
San Antonio, progress report Number or Completion Market rent USD Comments m2 Offices 19,100 2010 Q3 21-22 p/sqf, net 5,300 sqm let (27%) Hotel & Spa 165 rooms 2012 Q1 100 net Rev.PAR 20 yr fixed term lease, operated by Interstate under luxury brand, soft opening 2 Feb 2012 Apartments 539 2011 Q4 –
Slide 40: Appendix
Appendix SHOPPING CENTRES CES AND RESIDENTIAL WERELDHAVE (p Wereldhave. Value for tomorrow.
Slide 41: Financial cost (€ m)
Financial cost (€ m) FY 2011 FY 2010 yoy direct indirect direct indirect direct indirect Interest expenses -35.5 -25.9 37.1% Amortised costs of loans -2.4 -2.0 18.3% Non-cash option expense convertible bonds -4.5 -3.4 30.5% Other non-cash costs -2.0 0.1 -1.0 82.9% Interest income 0.5 0.3 39.3% Capit
Slide 42: EPRA lease data
EPRA lease data Average lease length Contract rent expiring in: to breakto expiry Year 1 Year 2 Year 3- (yr) (x € 1,000) 5 Belgium 2.4 4.7 8,640 6,623 9,635 Finland 3.4 3.4 8,586 3,443 6,454 France 6.0 6.7 177 1,422 1,835 The Netherlands 3.0 3.4 5,026 5,529 19,001 Spain 2.0 3.7 3,611 2,180 3,323 Uni
Slide 43: Interest rate & currency sensitivity Dec 2011
Interest rate & currency sensitivity Dec 2011 • Floating rate loans 56% of debt • Hedge on investments (end of (Dec 10: 43%) period) • Average interest: 3.0%* (Dec 10: - USD 54% (Dec 10: 45%) 2.6%) - GBP 58% (Dec 10: 70%) • 0.5% change in interest rates • A change of 10% on period-end EPS change: €
Slide 44: Investor relations contact
Investor relations: Charles Bloema/Jaap-Jan Fit tel: +31(0)703074543 investor.relations@wereldhave.com www.wereldhave.com