Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — FY2017 Earnings Presentation
56 slides from Nextensa's earnings presentation, Feb 22, 2018
Slide 1: Financial results FY 2017
Financial results FY 2017 Investor presentation – February/March 2018
Slide 2: Contents
Contents 01 l Company profile 02 l Strategic vision 03 l Governance 04 l Activity overview FY 2017 05 l Financial results FY 2017 06 l Share performance & reporting Appendices Leasinvest.be
Slide 3: Company profile
QO 1 Company profile
Slide 4: Company Profile
Company Profile AT 11% 6th largest BE-REIT/SIR/GVV 2nd largest real estate investor in Luxembourg listed on Euronext Brussels LU 50% Fair value portfolio BE (incl. stake in Retail Estates) 39% € 976 M Market capitalization > € 457 M LOG Shareholders 6% Ackermans & van Haaren 30% AXA Belgium 29% Free
Slide 5: Corporate Structure
Corporate Structure Ackermans & van Haaren AXA Belgium 30% 29% 100% Leasinvest Real Estate SCA/Comm. VA Leasinvest Real Estate Management SA/NV = BE REIT/SIR/GVV = asset management for LRE & LIL = buildings in Belgium Belgium Grand-duchy of Luxembourg Leasinvest Services SA/NV 100% 100% Leasinvest I
Slide 6: Leasinvest at a glance
Leasinvest at a glance Occupancy Cost of debt 94.80% 2.99% Rental yield Average duration debt 6.44% 3.34y WALT Debt ratio 4.74y 57.14% Leasinvest.be FY 2017 results| Leasinvest | 6
Slide 7: Portfolio Breakdown
Portfolio Breakdown Luxembourg Belgium Austria Total Fair value (million €) 489.10 311.25 102.65 903.00 Retail 283.75 50.40 102.65 436.80 Offices 186.22 218.28 - 404.50 Logistics/semi-industrial 19.13 42.57 - 61.70 Number of sites 16 9 3 28 Duration leases till first break 3.86y 4.44y 5.95y 4.74y Oc
Slide 8: Evolution geographical & asset class breakdown
Evolution geographical & asset class breakdown In € million including stake in Retail Estates Leasinvest.be FY 2017 results| Leasinvest | 8
Slide 9: Governance
02 Governance
Slide 10: Board of Directors & Management
Board of Directors & Management 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 executi
Slide 11: Corporate governance: CEO
Corporate governance: CEO • Jean-Louis Appelmans - after almost 19 years as CEO of Leasinvest Real Estate - will be retiring end May 2018, and will be succeeded by Michel Van Geyte (currently co-CEO & CIO). Leasinvest.be FY 2017 results| Leasinvest | 11
Slide 12: Investor relations contacts
Investor relations contacts Management Tim Rens Chief Financial Officer Jean-Louis Appelmans Chief Executive Officer Tim Rens (36) joined Leasinvest Jean-Louis Appelmans (64) is CEO and executive director of Leasinvest Real Estate as CFO in May 2017. Real Estate (since inception 1999) and of Leasinv
Slide 13: Strategic Vision
03 Strategic Vision
Slide 14: Refocused Strategy
Refocused Strategy • 2017 was characterized by a refocused strategy of Leasinvest RE • Focus on 3 countries instead of 4: - i.e. Luxembourg – Belgium – Austria - sale of Swiss portfolio in Q4 2017 • Focus on 2 asset classes instead of 3: - i.e. retail and offices - sale of largest part of logistics
Slide 15: 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 - AT Generating capital gains Offices LU - BE Improving
Slide 16: Shrewd acquisitions
01 Shrewd acquisitions Montoyer Brussels CBD (BE) Mercator (LU) reconstruction by 2018 €35M 2016: 21y usufruct with EP 2017: further capital gain expected Metro Group retail (LU) Tour&Taxis Royal Depot (BE) growth in LU portfolio € 50M - 3 buildings € 108M 2011: extension Diekirch landmark office bu
Slide 17: Creating value: evolution of equity
02 Creating value Evolution equity since 30/06/1999 500 000 382 206 400 000 334 324 300 000 200 000 146 661 130 444 112 398 100 000 5 046 -270 669 -32 635 -43 363 0 Shareholders' equity Capital increases Current result Dividend distributions Capital gains Belgium Capital gains Capital gains Austria
Slide 18: Occupancy rate & rental duration
03 Occupancy rate & rental duration Occupancy rate Rental duration Luxembourg Belgium Austria Total 2017 Total 2016 Duration (years) Occupancy (%) Retail 97.70% 98.19% 100.0% 97.96% 99.1% Offices 95.50% 89.30% 92.08% 93.6% Logistics 89.58% 95.56% 93.67% 97.2% Country 96.59% 91.30% 100.0% 94.80% 96.8
Slide 19: Diversified tenant base
Diversified tenant base Clothes/shoes/beauty Tenants’ Services Retail Industry detailed Leasinvest.be FY 2017 results| Leasinvest | 19
Slide 20: Funding characteristics
04 Funding characteristics Funding diversification • Cost of debt: slight increase from 2.90% (2016) to 2.99% 15% • Total committed lines (incl. bonds) increased from €608M to €647M Bilateral 9% 50% floating rate • Duration credit facilities decreased from 3.94y (2016) to 3.34y Commercial • Availabl
Slide 21: Hedging strategy
04 Hedging strategy • Debt financing – 78% fixed ratio • Fixed rate debt (26%) and interest rate swaps (52%) • Duration: 5.15y from 6.30y (2016) Hedge ratio 90% 80% 70% 60% 50% 40% Fix ratio Hedge ratio 30% strategy 20% 10% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Leasinvest.be FY 2017 r
Slide 22: Dividend pay-out
05 Dividend pay-out • Gross dividend 2017 increased +2.04% to €5.00 over 2017 (2016: €4.90) • Net dividend amounts to €3.50 (excl. 30% WHT), vs 2016 €3.43 (excl. 30% WHT) • Gross dividend yield of 5.21% (31/12/2017) • Consolidated pay-out ratio 2017: 89,77% (2016: 86.90%) 90,00 6,00 85,00 5,50 80,00
Slide 23: Activity overview 2017
QO 3 Activity overview 2017
Slide 24: Highlights 2017
Highlights 2017 KEY FIGURES • Montoyer 63 & Treesquare under construction and off-lease • Rental income stable • Net result rises by 62% & EPRA Earnings stable INVESTMENTS • Acquisition of office building Mercator in the City of Luxembourg • Acquisition of 2 retail parks located in City of Vienna (A
Slide 25: Acquisition Mercator office building (LU)
Acquisition Mercator office building (LU) • On 3 May 2017 acquisition 100% of the shares of the company Mercator Sàrl, owner of the office building located route d’Arlon 110/112 in the City of Luxembourg • 8,641 m² of offices, spread across 5 floors and 104 parking spaces • Excellent location in the
Slide 26: Acquisition in Vienna - Stadlau (AT)
Acquisition in Vienna - Stadlau (AT) • On October 16, 2017 Leasinvest Real Estate acquired 100% of the shares of 2 Austrian companies Kadmos Immobilien Leasing GmbH and Adrestos Beteiligungsverwaltungs GmbH • Hornbach (13,300 m²) and 10 shops (11,000 m²) in the retail park ‘Gewerbepark Stadlau’ in t
Slide 27: Acquisition in Vienna - Stadlau (AT)
Acquisition in Vienna - Stadlau (AT) 10 retail shops in Gewerbepark Stadlau Hornbach Baumarkt - Stadlau 27 Leasinvest.be FY 2017 results| Leasinvest | 27
Slide 28: EBBC & Lux Airport (LU)
EBBC & Lux Airport (LU) • EBBC is an office park of 6 buildings with 26,000 m² located on walking distance from the Luxembourg airport, 10’/15’ drive from Kirchberg and CBD Luxembourg • Leasinvest RE owns in EBBC block D (3,623 m²) let for 95% • Block B and E with 8,465 m² acquired in 1999 by SPV of
Slide 29: Retail Estates (BE)
Retail Estates (BE) • Leasinvest (LRE) holds 10.6% share in BE-REIT Retail Estates (€73M at 31/12/2017) RE • Real estate portfolio of €1.35 billion €269M • Focus = retail parks (69% of total portfolio) RE €1,080M • Portfolio breakdown: BE 76% - NL 24% LRE €50M LRE • LRE must hold minimum 10% stake f
Slide 30: Divestment largest portion logistics (BE)
Divestment largest portion logistics (BE) Wommelgem SKF Tongeren € 74 M logistic divestment in 2017: • € 40 M divestment of Wommelgem and Canal Logistics phase1 end 09/2017 • € 20 M SKF site (Tongeren) divested end of October 2017 • € 12 M Prins Boudewijnlaan (Kontich) sold end 12/2017 • € 2 M Vierw
Slide 31: Strategic divestment Swiss portfolio (CH)
Strategic divestment Swiss portfolio (CH) Etoy • Beginning of November 2014 Leasinvest Real Estate acquired 3 shops in Etoy, Villeneuve and Yverdon-les- Bains in the Canton of Vaud for CHF 45M at 6.12% Yverdon-les-Bains • On 5 October 2017 the Swiss portfolio was sold to an important private Swiss i
Slide 32: Redevelopment Montoyer 63 (BE)
Redevelopment Montoyer 63 (BE) • Building vacant: 12/2016 • Demolished as of Q1 2017 & fully rebuilt by Q4 2018 • Office project of 6,052 m² • BREEAM ‘excellent’ under construction received • One of few new buildings in CBD Brussels • Design SVR Architects (Antwerp) • Expected rental income of €1.6M
Slide 33: Redevelopment Treesquare (BE)
Redevelopment Treesquare (BE) • Building at Square de Meeûs vacant as of 07/2015 • Office project of 6,565 m² • Reconstruction works started in September 2016 to be finished Q1 2018 • BREEAM ‘excellent’ expected • Design: Assar Architects (Brussels) • One of few new buildings in Brussels CBD • Fores
Slide 34: Redevelopment Motstraat 30/32 (BE)
Redevelopment Motstraat 30/32 (BE) • Office project of 14,174 m² • Part of the remaining office space is being installed as a coworking space ‘De Mot’ based on our business center concept ‘The Crescent’ in Anderlecht and Ghent • Redevelopment works started in September 2017 to be finished Q2 2018 •
Slide 35: Boomerang Strassen Shopping Center (LU)
Boomerang Strassen Shopping Center (LU) • Retail park Strassen (Route d’Arlon) being renovated into Boomerang Shopping with shops & restaurant • Retail project of 22,721 m² - redevelopment in 2 phases (1st phase in 2016/2017 & 2nd phase starts in 2020) • 1st phase finalized in 09/2017 with renewal o
Slide 36: Leases status
Leases status Knauf Tour & Taxis LU • Extension of different rental contracts a.o. in Strassen & CFM site • rental renewals and new rental contracts could also be concluded for the Knauf shopping centers in Schmiede (H&M) and Pommerloch • Mercator leased for 100% BE • Extension of all rental contrac
Slide 37: Tour & Taxis – Royal Depot (BE)
Tour & Taxis – Royal Depot (BE) • Acquisition December 2015 • Total annual rent: €6.4M • 40.000 m² multifunctional and multi-tenant building on 4 floors with commercial activities and horeca on the ground floor • Iconic niche building and ‘experience hub’ for entire Tour & Taxis site • Building is f
Slide 38: Tour & Taxis – Royal Depot (BE) (2)
Tour & Taxis – Royal Depot (BE) (2) Leasinvest.be FY 2017 results| Leasinvest | 38
Slide 39: Frun Park Asten (AT)
Frun Park Asten (AT) • Acquisition November 2016 • Total annual rent: €2.4 M • Recent (2013) and very successful retail park located at 200 km of Vienna and nearby Linz - 26 shops and 600 parking spaces; roof is equipped with solar panels • Retail concept: construction of a harmonious architectural
Slide 40: Financial results 2017
04 Financial results 2017
Slide 41: Key consolidated financials 2017
Key consolidated financials 2017 Key figures balance sheet 31/12/2017 31/12/2016 Net asset value group share (€ 1,000) 382,206 356,407 Net asset value group share per share 77.4 72.2 Net asset value group share per share based on investment value 81.1 75.6 Net asset value group share per share EPRA
Slide 42: EPRA KPI’s 2017
EPRA KPI’s 2017 EPRA PERFORMANCE MEASURES 31/12/2017 31/12/2016 EPRA Earnings (in € per share) 5.57 5.65 EPRA NAV (in € per share) 83.99 81.91 EPRA NNNAV (in € per share) 77.14 70.93 EPRA Net Initial Yield (in %) 5.22% 5.82% EPRA Topped up Net Initial Yield (in %) 5.25% 5.86% EPRA Vacancy (in %) 5.2
Slide 43: Consolidated income statement
Consolidated income statement 31/12/2017 31/12/2016 Consolidated statement of realized and unrealized results (in 1,000 €) (+) Rental income 56 892 56 647 (+) Write-back of lease payments sold and discounted 0 0 (+/-) Related-rental expenses 0 -179 NET RENTAL INCOME 56 892 56 468 (+) Recovery of pro
Slide 44: Consolidated balance sheet
Consolidated balance sheet ASSETS (in 1,000 euro) 31/12/2017 31/12/2016 LIABILITIES (in 1,000 euro) 31/12/2017 31/12/2016 TOTAL SHAREHOLDERS’ EQUITY 382 206 356 407 I. NON-CURRENT ASSETS 979 104 896 179 I. SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO Intangible assets 2 4 THE SHAREHOLDERS OF THE PARENT Inve
Slide 45: Outlook FY 2018
Outlook FY 2018 For 2018 Leasinvest Real Estate expects a rental income in line with 2017. The funding costs, on the other hand, will decrease, also by restructuring the hedges portfolio. Except for extraordinary and unexpected events, this will result in the possibility to maintain the dividend at
Slide 46: Share performance & reporting
05 Share performance & reporting
Slide 47: Share performance
Share performance Leasinvest.be FY 2017 results| Leasinvest | 47
Slide 48: Share performance
Share performance 320 280 240 200 160 120 EPRA Eurozone index EPRA Belgium index LRE 80 1900 19001900 2001 1900 1901 20021901 19011901 2003 1902 1902 1902 2004 1903 1903 20051903 19031904 2006 1904 1904 1904 2007 1905 1905 20081905 1906 1906 2009 1906 1906 1907 2010 1907 1907 20111907 1908 1908 2012
Slide 49: Share performance
Share performance Performance report December 2017 Leasinvest.be FY 2017 results| Leasinvest | 49
Slide 50: Total returns comparison
Share performance Total returns comparison Leasinvest Real Estate - GPR General Quoted Belgium Index (LOC denominated) - GPR General Quoted Europe Index (LOC-denominated) since 31/12/1999 until 31/12/2017 600 500 400 300 200 100 - December-99 December-00 December-01 December-02 December-03 December-
Slide 51: Analyst recommendations
Analyst recommendations Bank Analyst Recommendation Target price Date Bank Degroof Petercam Herman van der Loos Hold € 104.00 21/02/2018 KBC Securities Jan Opdecam Hold € 105.00 31/10/2017 ING Bank Netherlands Pieter Runneboom Hold € 96.00 31/10/2017 Financial calendar 22/02/2018 Year-results 2017 (
Slide 52: Appendices
a Appendices
Slide 53: Our main Luxembourg buildings
Our main Luxembourg buildings RETAIL - Shopping center Knauf - Strassen OFFICE - Montimmo RETAIL Pommerloch 2 phase renovation 2017-2020 Avenue Monterey, CBD North of Luxembourg Route d'Arlon Acquisition: 2008 Acquisition: 2013 Acquisition: 2008 (Metro Lux) OFFICE - Kennedy Kirchberg Acquisition: pa
Slide 54: Our main Belgian buildings
Our main Belgian buildings OFFICE RETAIL RETAIL LOGISTICS OFFICE - The Crescent Anderlecht OFFICE - Motstraat - Tour & Taxis - Brixton Business Park Lenniksebaan 451 - Anderlecht Motstraat 30 - Mechelen Acquisition: 2004 Acquisition: 2002 Avenue du Port 86C - Brussels Brixtonlaan 1-30 – Zaventem Acq
Slide 55: Our main Austrian buildings
Our main Austrian buildings - Frun© Park RETAIL RETAIL - Gewerbepark Stadlau RETAIL - Hornbach Baumarkt Asten Linz - 200 KM from Vienna Stadlau (22nd district Vienna) Stadlau (22nd district Vienna) Acquisition: 2016 Acquisition: 2017 Acquisition: 2017 Leasinvest.be FY 2017 results| Leasinvest | 55
Slide 56: Disclaimer
Disclaimer DISCLAIMER This presentation contains forward-looking statements. Such forward-looking statements involve unknown risks, uncertainties and other factors which may cause the actual results, financial conditions, performance or achievements of the company to be materially different from any
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