Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — Eurocommercial Pptys N V — FY2024 Earnings Presentation
42 slides from Eurocommercial Properties Nv's earnings presentation, Mar 7, 2025
Slide 1: Full Year 2024 Results
Full Year 2024 Results 7 March 2025
Slide 2: Agenda
AGENDA Results review Financial review Closing remarks Evert Jan van Garderen Roberto Fraticelli Evert Jan van Garderen CEO CFO CEO 2
Slide 3: Results review
Results review Evert Jan van Garderen CEO
Slide 4: A diversified portfolio of 24 shopping centres in 4 markets
A diversified portfolio of 24 shopping centres in 4 markets Total value: €3.9 billion Italy France Sweden Belgium 45% 21% 20% 14% 1 I Gigli, Florence 1 Passage du Havre, Paris 1 Woluwe Shopping, Brussels 1 Hallarna, Halmstad 2 Carosello, Carugate, Milan 2 Val Thoiry, Greater Geneva 2 Bergvik, Karlst
Slide 5: Operational performance in 2024
Operational performance in 2024 Positive operational metrics across all geographies Rental growth Renewals and relettings Net property income +3.5% +4.5% Like-for-like Rental uplift on renewals and relettings +5.9% 275 lease transactions Vacancy OCR Retail sales 1.4% 9.8% +2.7% 5
Slide 6: Like-for-like rental growth
Like-for-like rental growth driven by indexation and turnover rents Like-for-like rental growth Overall 3.5% Belgium 1.2% France 4.0% Italy 3.6% Sweden 4.1% Long-term like-for-like rental growth Average: 2.8% 9.7% 8.2% 4.7% 4.5% 4.1% 4.1% 3.5% 2.9% 2.1% 2.4% 1.8% 1.4% 1.5% 1.4% 0.9% 1.0% 0.7% 1.0% 0
Slide 7: Renewals and relettings
Renewals and relettings Strong tenant demand producing positive lease spreads 275 transactions Number of Average rental % of leases renewals and renewed and 171 renewals relettings uplift relet (MGR) 104 relettings Belgium 24 6.6% 34% 4.5% France 52 -1.4% 13% Rental uplift overall Italy 92 7.9% 14%
Slide 8: EPRA vacancy
EPRA vacancy* reduced during the year down to 1.4% EPRA vacancy 31 Mar 2024 30 Jun 2024 30 Sep 2024 31 Dec 2024 Overall 1.8% 1.7% 1.8% 1.4% Belgium 2.5% 1.8% 1.8% 0.2% France 2.3% 1.9% 2.4% 1.8% Italy 0.6% 0.2% 0.2% 0.3% Sweden 3.6% 4.6% 4.6% 3.9% * Excludes storage space Long-term EPRA vacancy Aver
Slide 9: Occupancy cost ratio (OCR)
Occupancy cost ratio (OCR) Low OCRs support sustainable rental income and low vacancy OCR 2023 OCR 2024 Overall 9.5% 9.8% Belgium 14.3% 14.2% France 10.0% 10.4% Italy 9.8% 9.8% Sweden 7.5% 8.2% OCCUPANCY COST RATIO Rent Local Taxes Service Charge & Others 9.5% 9.5% 9.8% 9.8% 9.2% 9.2% 1.7% 1.7% 1.7%
Slide 10: Retail sales growth 2024
Retail sales growth 2024 Positive growth in all markets Like-for-like retail sales by country* 3.9% 3.5% 2.7% 2.7% 1.2% TOTAL Belgium France Italy Sweden FY 2024 vs FY 2023 *Excluding extensions/redevelopments and excluding the units involved in the remerchandising at Carosello Italy 10
Slide 11: Retail sales growth 2024 by sector
Retail sales growth 2024 Like-for-like retail sales by sector* 11.3% 7.5% 5.9% 6.3% 5.2% 2.9% 2.0% 0.8% -0.7% -3.8% Fashion & Health & Beauty Gifts & Sport Home Goods Books & Toys Electricals F&B Hypermarkets/ Services Shoes Jewellery Supermarkets FY 2024 vs FY 2023 *Excluding extensions/redevelopme
Slide 12: Fastest growing retail sectors in our malls
Fastest growing retail sectors in our malls Last 3 years – sales growth per annum HEALTH & BEAUTY F&B SPORT/LIFESTYLE 13% 19% 11% 12
Slide 13: Major brands expanding in our centres
Major brands expanding in our centres % increase in total leased GLA over the last five years 329% 227% 166% 150% 135% 108% 98% 52% 52% 54% 56% 36% 36% 41% 16% 18% 13
Slide 14: Biggest fashion brands target dominant shopping centres
Biggest fashion brands target dominant shopping centres • Fashion still the largest sector in our Zara malls (37%). Massimo Dutti Bershka • Largest fashion groups increasingly Stradivarius Pull&Bear demand bigger but fewer stores in Zara Home Dressmann dominant shopping centres to Lefties Bik Bok sh
Slide 15: Carosello, Milan remerchandising
Carosello, Milan remerchandising New STRADIVARIUS (550m²) New BERSHKA New MEDIAWORLD (800m²) (3,000m²) New ZARA (4,600m²) Grand Vision 118m² (229m²) 15 1,600m²
Slide 16: Woluwe Shopping remerchandising
Woluwe Shopping remerchandising New MASSIMO DUTTI (360m²) First Floor New C&A Ground Floor (1,455m²) New ZARA Refurbished INNO Carrefour (3,300m²) (12,000m²) supermarket (3,000m²) 16
Slide 17: Internal growth remerchandising projects
Internal growth remerchandising projects Growth in retail sales and footfall during Q4 2024 CAROSELLO, MILAN WOLUWE SHOPPING, BRUSSELS Turnover: +6.1% Turnover: +18.1% Footfall: +18.7% Footfall : +5.7% Year end valuation increase: 3.3% Zara close stores in competing centres Inditex opens full concep
Slide 18: New development at Grand Samarkand, Växjö
New development at Grand Samarkand, Växjö 8,200m² development for Ekohallen Under A ten-year lease construction: Project return of at least 8% on a cost of €12 million (SEK 130 million) Completion March 2025 City of Växjö, approx. 4 km Ekohallen, Bronsen, Norrköping developed and sold by ECP
Slide 19: Strong fundamentals for successful internal growth
Strong fundamentals for successful internal growth Retailers Shopping centre supply Consumers • Concentrate on successful • Development activity curtailed by • Strong instore retail sales growth shopping centres in prime restrictive planning and sustained by: locations environmental legislation • De
Slide 20: Future remerchandising projects 2025 - 2027
Future remerchandising projects 2025 - 2027 20
Slide 21: Latest ESG update
Latest ESG update Double materiality assessment analysis finalised • BREEAM In-Use certification in progress with 6 identified topics: All assets are certified or in the process of • Environmental: building adaptation for climate risk, carbon re-certification under the new protocol V6 – the newly re
Slide 22: Latest ESG update (continued)
Latest ESG update (continued) 15 out of 24 shopping centres have on-site solar panels, collectively generating over 5,615 MWh Electric vehicle chargers in our shopping centres electricity self-consumed in 2024 (+41% compared • Belgium – 12 chargers in operation to 2023) • France –114 chargers in ope
Slide 23: Financial review
Financial review Roberto Fraticelli CFO
Slide 24: Financial performance in 2024
Financial performance in 2024* Property Investments EPRA NTA per share Net Property Income LTV ratio (-1.2%) Dividend (+5.9%) (+3.1%) (+5.6%) (+5.9%) €3.9 billion 41.3% €41.79 €197.9 million €1.80 Net debt stable at key financial metrics €1.618 billion 2024 2023 Average cost of debt 3.2% 3.2% Intere
Slide 25: Valuations
Valuations Valuation increases in all countries EPRA NIY at 5.7% Net value Valuation change Valuation change EPRA yields 31 Dec 2024 from from 2024 € million 30 Jun 2024 31 Dec 2023 Topped NIY Up Belgium 542 1.8% 3.3% 5.0% 5.3% France 822 1.3% 1.6% 5.6% 5.8% Italy 1,741 3.3% 4.3% 6.0% 6.2% Sweden 79
Slide 26: Valuation split
Valuation split 5 dominant flagships Net value (€M) 5 Flagships EPRA net initial yield (%) EPRA topped up yield (%) 31 December 2024 Woluwe Shopping (Belgium) Passage du Havre (France) 1,829 5.4 5.6 I Gigli, Carosello, Fiordaliso (Italy) (47% of the portfolio) 19 hypermarket anchored shopping centre
Slide 27: All loans maturing in 2025 refinanced
All loans maturing in 2025 refinanced €558 million of loans extended GREEN AND SUSTAINABILITY LINKED LOAN • €50 million 6-year loan with ABN AMRO Bank on shopping centre Cremona Po, Italy GREEN LOANS • €265 million 6-year loan with ABN AMRO Bank and ING on Woluwe Shopping, Belgium • SEK 700 million
Slide 28: Financial summary at 31 December 2024
Financial summary at 31 December 2024* (including JV borrowings on a proportional basis) Total net borrowings** Average term of hedges*** Average overall interest rate (incl. margin) €1.618 billion 5.9 years 3.2% Long-term borrowings maturity and amortisation schedule at 31 December 2024 (€m) includ
Slide 29: Interest rate hedging
Interest rate hedging Cash-flow hedging 100% 91% 90% 9.00% 85% 84% 90% 82% 81% 80% 79% 76% 7.00% 80% 70% 5.00% 3.57% 3.92% 3.71% 60% 2.40% 3.16% 1.90% 1.90% 2.00% 2.00% 3.00% 3.20% 3.20% 50% 2.90% 2.71% 40% 2.13% 1.00% 30% -1.00% -0.54% -0.54% -0.57% -0.20% 20% -3.00% 10% 0% -5.00% 31/12/2020 30/06/
Slide 30: Financial Position
Financial Position (at 31 December 2024) Main Highlights Financial position (€ million) 12.2024 12.2023 Property investments* €3,699 €3,576 Net borrowings* €1,519 €1,513 3.1% EPRA NTA €2,245 €2,118 property EPRA NTA LTV EPRA Net investments per share EPRA Net initial yield 5.7% 5.8% decreased initia
Slide 31: EPRA NTA per share bridge
EPRA NTA PER SHARE BRIDGE 0.91 2.39 0.30 0.62 41.79 (0.30) 0.20 (1.70) (0.21) 39.59 EPRA NTA 31/12/23 Direct inv. result Indirect inv. result Dividend distribution Stock dividend Shares buyback Adj. Deferred tax Adj. FV Fin. Instr. Other EPRA NTA 31/12/24 31
Slide 32: Income Statement
Income Statement (at 31 December 2024) Main Highlights Income statement (€ million) 12.2024 12.2023 Rental income* €219.7 €215.3 Net property income* €185.5 €175.6 Increase in Net interest Net interest expenses* €47.0 Rental Direct €52.2 property expenses income investment income limited by Direct i
Slide 33: Direct Investment Result 12/2024 vs 12/2023
Direct Investment Result (DIR) 12/2024 vs 12/2023 (€/m)* 3.0 7.3 2.1 0.9 127.9 (2.0) (5.3) (0.6) (0.5) 123.1 Amounts are in € million and are reported according Rental Income to proportional consolidation Bad Debt Net Interest Expense Corporate Income Tax Direct Investment Result 31/12/24 Direct Inv
Slide 34: Recurring earnings comparison of 2024 with 2023
Recurring earnings comparison of 2024 with 2023 (€/m)* 239 Rental income 232 (31) Property expenses (34) 2024 2023 Rental income 239 232 (2) Net service charges Property expenses (31) (34) (5) Net service charges (2) (5) (12) Company expenses Company expenses (12) (11) (11) Other income and expenses
Slide 35: Closing remarks
Closing remarks Evert Jan van Garderen
Slide 36: Share buyback programme
Share buyback programme Started on 13 June 2024 Completed on 30 September 2024 Amount spent €15 million 641,151 shares bought back for an average price of €23.40 per share, representing 1.2% of the issued share capital 36
Slide 37: 2025 Proposed dividend
2025 Proposed dividend €1.80 per €1.70 Total dividend of €1.80 per share to be paid in 2025 share per subject to the AGM approval, a 5.9% increase share compared to €1.70 per share paid in 2024 7.5% dividend yield Interim dividend of €0.68 per share already paid in January 2025. €1.12 Shareh
Slide 38: 2025 Direct investment result guidance
2025 Direct investment result guidance Assuming no major deterioration in the macro-economic environment we expect a direct investment result for the full year 2025 to range between €2.40 and €2.45 per share. 38
Slide 39: Financial Calendar
Financial Calendar 8 May 2025 - Q1 2025 results 3 June 2025 - Annual General Meeting 28 August 2025 - Half Year 2025 results 11 September 2025 – Capital Markets Day
Slide 40: Q&A
Q&A
Slide 41: Disclaimer/forward-looking statements
Disclaimer/forward-looking statements This presentation does not constitute or form a part of any offer to sell, or any invitation or other solicitation of any offer, to buy or subscribe for any securities in the United States or any other jurisdiction. Some statements in this presentation are 'forw
Slide 42: Head Office and Group Offices
Head Office Group Offices Eurocommercial Properties N.V. Belgium France Italy Sweden De Boelelaan469 Herengracht 7 Rue St Lambert 200 107 rue Saint Lazare Via della Moscova, 3 Kungsgatan 48 1083 1017 HJ BS Amsterdam Amsterdam 1200 Bruxelles 75009 Paris 20121 Milano 111 35 Stockholm www.eurocommercia
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