Lighthouse Properties Plc · JSE:LTE

Lighthouse Properties — FY2021 Earnings Presentation

39 slides from Lighthouse Properties's earnings presentation, Mar 14, 2022

  1. Slide 1: Financial Results Presentation for the year ended 31 December 2021

    F I N A N C I A L R E S U LT S P R E S E N TAT I O N for the year ended 31 December 2021

  2. Slide 2: Agenda

    Agenda 1. Overview • Strategy • Highlights • Retail environment • Funding 2. Portfolio • Overview • Hammerson • Asset management 3. Spanish acquisition 4. Outlook 5. Questions

  3. Slide 3: Strategy

    Overview Strategy • Dominant retail malls in economically strong jurisdictions • Key locations on busy commuter routes or transportation hubs • Tenant-centric focus with key retailers: › Fashion: Primark, Inditex, H&M, etc; › Grocer anchors: E’Leclerc, Lidl, Mercadona, etc; › Holistic entertainment

  4. Slide 4: Highlights

    Overview Highlights • Increase in distribution of 2.2% (vs previous 15-month period) • Payout ratio reduced to 87.4% • 28.9% increase in NAV per share • Acquisition of 4 French malls › EUR 19 m revaluation from French portfolio • 32% increase in Hammerson share price • Conservative LTV ratio of 13.6

  5. Slide 5: Highlights continued

    Overview Highlights continued 2021 2020 12 month period 15 month period * Key indicators December December Shares in issue 1,624,873,544 1,207,790,136 Distributable earnings per share (EUR cents) 3.68 *** 3.25 Distribution per share (EUR cents) 3.22 3.15 Growth in distribution (%) (period-on-period)

  6. Slide 6: Funding

    Overview Funding Long term borrowings Interest rate Maturity date Balance EUR LTV ING / NN Consortium Fixed 2.15% Nov 2024 77,524,823 42.7% NLB Euribor1 + 2.75% Dec 2026 20,455,810 31.2% Deutsche Bank Euribor1 + 4.50% Sep 2023 39,665,811 137,646,444 13.6% Post year-end: EUR 135 m Green Loan • Natixi

  7. Slide 7: Retail environment

    Overview Retail environment • Continued consolidation of key retailers • Quality malls proving their resilience › Return of sales to pre-COVID-19 levels under less restrictive trading environment › Cinema ticket sales at c. 90% of pre-COVID-19 levels, key constraint becoming content supply (Blockbus

  8. Slide 8: Agenda

    Agenda 1. Overview • Strategy • Highlights • Retail environment • Funding 2. Portfolio • Overview • Hammerson • Asset management 3. Spanish acquisition 4. Outlook 5. Questions

  9. Slide 9: Investment jurisdictions

    Portfolio | Overview Investment jurisdictions GDP S&P per capita Physical Country Rating Population (m) USD 2020 portfolio % France AA 67.4 39,030 38% Portugal BBB 10,3 22,176 28% Spain A 47.4 27,063 25% Slovenia AA- 2.1 25,517 10% Source: S&P Global Ratings, World Bank 9 Lighthouse Results Presenta

  10. Slide 10: Tenant base

    Portfolio | Portfolio overview Tenant base Inditex Group 2 Fashion Cube 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 1. Excludes grocers that form part of malls but are not owned (e.g., E’Leclerc at Saint Sever) % of contractual revenue revenue at December 2021¹ 2. Excludes Primark at Saint Sever as this store is

  11. Slide 11: Hammerson

    Portfolio | Hammerson Hammerson Image of the Bullring, Birmingham, United Kingdom • Holding increased from 21.6% to 22.3% • Increase in adjusted earnings to GBP 81m (122% YoY increase) • Property valuations stabilising • Debt maturity prolife successfully extended › 39% headline LTV and 47% (fully p

  12. Slide 12: Rivetoile

    Portfolio | Asset management Rivetoile 12 Lighthouse Results Presentation

  13. Slide 13: Rivetoile

    Portfolio | Asset management Rivetoile Performance • Footfall: -16% vs Dec 2019 • Turnover: -3.6% vs Dec 2019 • OCR Q4 2021: 9.9% • Vacancy: 4.1% Leasing • New tenants: strong Q4 2021 › Normal (445m²); Fresh Burritos (143m²); Le Caviste de l'Etoile (165m²) • New leases signed: Cleor (111 m²) and WeA

  14. Slide 14: Rivetoile extension

    Portfolio | Asset management Rivetoile extension • Final stages of purchasing land from the City of Strasbourg › Extension project creates additional c. 1,136m² of retail GLA › Material improvement of flow and shopping experience on the ground level › Building permit and commercial license is alread

  15. Slide 15: Rivetoile extension

    Portfolio | Asset management Rivetoile extension 15 Lighthouse Results Presentation

  16. Slide 16: Docks Vauban

    Portfolio | Asset management Docks Vauban 16 Lighthouse Results Presentation

  17. Slide 17: Docks Vauban

    Portfolio | Asset management Docks Vauban Performance • Footfall: -12.5% vs Dec 2019 • Turnover: -13.7% vs Dec 2019 • OCR Q4 2021: 10.6% • Cinema tickets: -12% vs Dec 2019 • Vacancy: 2.2% Leasing • New tenants: strong Q4 2021 › KFC (559m²) › Jennyfer (1,105m²) • New leases signed: Chaussea (1,980m²)

  18. Slide 18: Docks 76

    Portfolio | Asset management Docks 76 18 Lighthouse Results Presentation

  19. Slide 19: Docks 76

    Portfolio | Asset management Docks 76 Performance • Footfall: flat vs Dec 2019 • Turnover: +2.5% vs Dec 2019 • OCR Q4 2021: 13.8% • Cinema tickets: -7% vs Dec 2019 • Vacancy: 8.3% Environmental • BREEAM in-use rating of excellent for both asset performance and building management Projects: Biltoki f

  20. Slide 20: Docks 76 Biltoki concept

    Portfolio | Asset management Docks 76 Biltoki concept 20 Lighthouse Results Presentation

  21. Slide 21: Saint Sever

    Portfolio | Asset management Saint Sever 21 Lighthouse Results Presentation

  22. Slide 22: Saint Sever

    Portfolio | Asset management Saint Sever Performance • Footfall: -21% vs Dec 2019 • Turnover: -2% vs Dec 2019 • OCR Q4 2021: 13.8% • Cinema tickets: -15% vs Dec 2019 • Vacancy: 16.5% Leasing • Active negotiations with various leading fashion brands in anticipation of Primark opening Environmental •

  23. Slide 23: Saint Sever Primark Project

    Portfolio | Asset management Saint Sever Primark Project 23 Lighthouse Results Presentation

  24. Slide 24: Forum Coimbra

    Portfolio | Asset management Forum Coimbra 24 Lighthouse Results Presentation

  25. Slide 25: Forum Coimbra

    Portfolio | Asset management Forum Coimbra Performance • Footfall: -11.4% vs Dec 2019 • Turnover: -12.5% vs Dec 2019 • OCR Q4 2021: 9.7% • Vacancy: < 1% • Cinema tickets: -15% vs Dec 2019 Environmental • BREEAM in-use certification currently underway • Solar project planned (with the extension of Pr

  26. Slide 26: Planet Koper

    Portfolio | Asset management Planet Koper 26 Lighthouse Results Presentation

  27. Slide 27: Planet Koper

    Portfolio | Asset management Planet Koper Performance • Footfall: -29% vs Dec 2019 • Turnover: -10% vs Dec 2019 • OCR Q4 2021: 14.3% Insert picture • Vacancy: < 1% Leasing • New 5 to 10-year lease agreements with Bershka, Tezinis, Xiomi, Ghetaldus and Terranova • Renewed lease agreements with anchor

  28. Slide 28: Agenda

    Agenda 1. Overview • Strategy • Highlights • Retail environment • Funding 2. Portfolio • Overview • Hammerson • Asset management 3. Spanish acquisition 4. Outlook 5. Questions

  29. Slide 29: Centro Comercial Torrecárdenas

    Spanish acquisition Centro Comercial Torrecárdenas 29 Lighthouse Results Presentation

  30. Slide 30: Investment thesis

    Spanish acquisition Investment thesis Spain is the 4th largest economy in the European Union (by 2020 GDP, in USD billions) 3 846 • Spain is the 4th largest economy in the European Union 2 708 2 630 1 886 1 281 • Investment grade rating (S&P A rating) and GDP per capita c. USD 914 752 29,564 Netherl

  31. Slide 31: Centro Comercial Torrecárdenas

    Spanish acquisition Centro Comercial Torrecárdenas GLA (m²) 61,589 Property Price (EUR) 162,500,000 Projected Yield NOI 2022 6,4% Occupancy 97,6% Grocer Fashion (3 units vacant c. 1,466 m²) Retail Park Food and Entertainment 2019 Footfall (million pa) 6,9 Tenant Turnover (EUR million) 2019 78,6 OCR

  32. Slide 32: Centro Comercial Torrecárdenas

    Spanish acquisition Centro Comercial Torrecárdenas 32 Lighthouse Results Presentation

  33. Slide 33: Centro Comercial Torrecárdenas

    Spanish acquisition Centro Comercial Torrecárdenas 33 Lighthouse Results Presentation

  34. Slide 34: Centro Comercial Torrecárdenas

    Spanish acquisition Centro Comercial Torrecárdenas 34 Lighthouse Results Presentation

  35. Slide 35: Centro Comercial Torrecárdenas

    Spanish acquisition Centro Comercial Torrecárdenas Ground floor First floor 35 Lighthouse Results Presentation

  36. Slide 36: Transaction details

    Spanish acquisition Transaction details Property price €162,5 million Acquisition yield 6.4% yield (2022 projected NOI) Effective date 10 March 2022 Funding of the • Existing debt package of €85 million from Santander and Caixa syndicated loan facility acquisition > 3 years remaining > Margin 2.5% >

  37. Slide 37: Agenda

    Agenda 1. Overview • Strategy • Highlights • Retail environment 2. Portfolio • Portfolio overview • Hammerson • Asset management 3. Spanish acquisition 4. Outlook 5. Questions

  38. Slide 38: Outlook

    Outlook Outlook • Continued consolidation of key retailers • Quality malls seeing return of sales to pre-COVID-19 levels • Luxury goods seeing high demand driven by pent-up spending • Return of financiers to retail investment market • Access to bond market • Euronext listing • Inflation concerns and

  39. Slide 39: Questions

    TM AR Ki QUESTIONS

Lighthouse Properties — FY2021 Earnings Presentation on 6ix