Wereldhave N.v. · EURONEXT:WHA
Wereldhave — Q1 2011 Earnings Presentation
24 slides from Wereldhave's earnings presentation, May 11, 2011
Slide 1: Investor presentation Q1 2011 results
Investor presentation Q1 2011 results
Slide 2: Recent highlights
Recent highlights • Successful issue of US$ 300m senior notes (US private placement) • Sale non-strategic assets in UK of € 15.1m, 7% above latest valuation • Sale of a further € 39.2m in April (Dutch logistic assets), marginally below the latest valuation 2
Slide 3: Business environment
Business environment • Moderate GDP growth continues at below 2% pace in Europe, with Northern countries clearly accelerating. US gaining momentum but dollar is sliding. Inflation and rising interest rates still main themes • Hiccups in consumer trust. No ‘exuberance’ expected for the near term. • I
Slide 4: Q1 2011 key figures
Q1 2011 key figures • Direct result p/s: € 1.27 (+6% yoy) • Total result p/s: € 1.21 • Revaluation portfolio: 0% • NAV p/s: € 74.83 (-0.5% yoy) • Investment portfolio: € 2,949m (+7% yoy) • Development pipeline ± € 431m • Occupancy 89.4% (EPRA) • LTV 39% 4
Slide 5: Total result (€ m)
Total result (€ m) Q1 2011 Q1 2010 yoy Direct result 29.0 27.5 5.7% Indirect result -1.4 -14.9 Profit 27.6 12.6 Minority interest 1.7 2.0 -12.9% Profit for shareholders 25.9 10.6 5
Slide 6: Direct result (€ m)
Direct result (€ m) Q1 2011 Q1 2010 yoy Gross rental income 52.3 48.0 9% Operational costs -11.5 -11.6 -1% Net rental income 40.8 36.4 12% General costs -3.8 -3.2 18% Other 0.8 0.7 31% Net financial costs -8.3 -5.2 61% Taxes -0.5 -1.2 -59% Direct result 29.0 27.5 6% Minority interest 1.7 1.9 -9% Dir
Slide 7: NRI bridge (€ m)
NRI bridge (€ m) 45 +14.0% -2.8% +0.2% +0.7% 40.8 40 36.4 35 30 25 NRI Q1 2010 Acquisitions Disposals Like for like Currencies NRI Q1 2011 7
Slide 8: Net rental income (€ m)
Net rental income (€ m) Q1 2011 % total yoy l-f-l Total 40.8 100% 12.1% 0.2% Belgium 5.5 13% -5.2% -8.7% Finland 6.9 17% 0.0% 0.0% France 2.8 7% 116.0% 116.0% The Netherlands 10.6 26% 47.2% 1.1% Spain 1.8 4% -15.7% -15.7% United Kingdom 5.2 13% 20.9% -1.5% U.S.A. 8.0 20% -8.0% -7.2% * in local curre
Slide 9: Occupancy
Occupancy EPRA EPRA Retail Office Other Mar 2011 Dec 2010 Belgium 99.6 70.9 - 87.6 87.4 Finland 98.3 - 100.0 98.3 98.0 France 89.2 99.1 - 97.9 97.9 The Netherlands 97.9 98.1 94.8 97.2 98.2 Spain 59.5 85.6 100.0 80.0 85.7 United Kingdom 96.2 85.9 89.8 90.9 91.1 U.S.A. 69.3 80.0 93.9 80.9 85.9 EPRA Ma
Slide 10: Lease expiry (rent as % of contracted rent in March 2011)
Lease expiry (rent as % of contracted rent in March 2011) 18% 16% 1.1% 0.6% 0.6% 14% 12% 0.1% 9.3% 7.3% 7.6% 0.6% 10% 0.9% 0.2% 8% 2.2% 1.6% 4.4% 6% 5.4% 4.3% 0.1% 10.4% 2.4% 4% 1.2% 7.2% 7.0% 5.8% 2% 0.1% 4.4% 3.0% 3.4% 3.4% 3.4% 1.3% 0% 0.6% 2011 2012 2013 2014 2015 2016 2017 2018 2019 > 2020 Offi
Slide 11: EPRA lease data
EPRA lease data Average lease length Contract rent expiring in: to break to expiry Year 1 Year 2 Year 3-5 (yr) (x € 1,000) Belgium 3.6 4.9 1,411 7,607 11,913 Finland 3.7 3.9 4,216 5,518 11,610 France 6.6 7.3 307 309 1,982 The Netherlands 3.3 3.5 5,342 5,316 17,626 Spain 2.3 4.1 1,435 3,432 3,843 Uni
Slide 12: Financial costs
WERELDHAVE Financial costs @ Wereldhave. Value for tomorrow. SHOPPING CENTRES FFICES AND RESIDENTIAL rY DEVELOPMENT
Slide 13: Financial cost (€ m)
Financial cost (€ m) Q1 2011 Q1 2010 yoy direct indirect direct indirect direct indirect Interest expenses -7.5 -4.8 56% Amortised costs of loans -0.6 -0.4 50% Non-cash option expense convertible -1.4 -0.8 78% bonds Other non-cash costs -1.2 -0.6 100% Interest income 0.2 0.1 -80% Capitalized interes
Slide 14: Interest rate & currency sensitivity March 2011
Interest rate & currency sensitivity March 2011 • Floating rate loans 51% of debt (FY10: • Hedge on investments (end of 43%) period) • Average interest: 2.8%* (Dec 10: 2.6%) - USD 45% (Dec 09: 45%) • 0.5% change in interest rates - GBP 71% (Dec 09: 72%) EPS change: € 0.13 (or 2.5% of DR) • A change
Slide 15: Indirect result
WERELDHAVE Indirect result @ Wereldhave. Value for tomorrow. SHOPPING CENTRES FFICES AND RESIDENTIAL rY DEVELOPMENT
Slide 16: Indirect result (€ m)
Indirect result (€ m) Q1 2011 Q1 2010 Revaluation -2.0 -12.0 Results on sales 0.7 -0.1 Deferred tax -1.4 -0.5 Net financial costs -1.4 -0.8 Other 2.7 -1.5 Indirect result -1.4 -14.9 Minority interest 0.0 0.1 Shareholders -1.4 -15.0 16
Slide 17: Yield movements & cap rates Q1 2011
Yield movements & cap rates Q1 2011 Retail Office Industrial Resi Cap rate Belgium 0.0% 0.0% - - 6.3% Finland 0.0% 0.0% - - 5.9% France 0.0% 0.0% - - 6.0% The Netherlands 0.0% 0.0% 0.0% 0.0% 6.2% Spain 0.0% 0.0% 0.0% - 7.3% United Kingdom -0.2% 0.0% 0.0% - 6.9% U.S.A. 0.0% 0.0% - 0.0% 6.8% Cap rate
Slide 18: Balance sheet & Debt profile
SHOPPING CENTRES e Zz my) = oa ° J my > tu r=) ¢ WERELDHAVE Balance sheet & Debt profile @n) Wereldhave. Value for tomorrow.
Slide 19: Sound balance sheet (€ m)
Sound balance sheet (€ m) Q1 2011 2010 2009 Total assets 3,097.7 3,121.8 2,597.0 Interest bearing debt long -1,062.6 -876.9 -572.1 Interest bearing debt short -69.2 -271.1 -140.8 Deferred tax liabilities -128.4 -129.3 -119.0 Other liabilities -113.7 -116.4 -78.6 Equity 1,723.8 1,728.1 1,686.5 NAV pe
Slide 20: Debt: conservative ratio's at low cost
Debt: conservative ratio’s at low cost • Interest bearing debt: € 1,155m (2010: 1,174m)* • Fixed/floating: 49%/51% (Dec 10: 57%/43%) • Average cost: 2.8%* (Dec 10: 2.6%) • LTV: 39% (Dec 2010: 39%) • ICR: 5.7x (Dec 2010: 6.8x) Wereldhave amongst the best capitalized listed property companies in Europ
Slide 21: Debt profile 31 March 2011
Debt profile 31 March 2011 Type of debt Maturity profile total € 1,155m* 400 369 mortgages 3% 350 US PP 18% 300 250 230 214 198 bank loans 200 (unsecured) 39% convertible 150 130 bond 09-14 100 81 20% 69 53 50 25 8 convertible 0 bond 10-15 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20% d
Slide 22: Development pipeline overview
Development pipeline overview Project Location Total Capex sofar Expected net Estimated Remarks investment yield completion San Antonio I* Texas, US € 115m** € 95m 7.0-7.5% Q4 2011 - Q1 Marketing of 1st phase has 2012 started Nivelles I Belgium € 44m** € 23m 7.5-8.0% 2012 20% pre-let Tournai I Belgi
Slide 23: Future: 2011
Future: 2011 • Office portfolio: focus on improving occupancy rate • Retail portfolio: focus on l-f-l rental growth and refurbishment- /extension- plans • Further acquisitions of UK shopping centres and offices in Paris & Madrid • Continuation of active sales program non-strategic assets across port
Slide 24: Investor relations contact
Investor relations: Charles Bloema/Jaap-Jan Fit tel: +31(0)703469325 investor.relations@wereldhave.com www.wereldhave.com