Wereldhave N.v. · EURONEXT:WHA

Wereldhave — FY2015 Earnings Presentation

46 slides from Wereldhave's earnings presentation, Feb 4, 2016

  1. Slide 1: Full-Year Results 2015

    FULL-YEAR RESULTS 2015 Schiphol 4 February 2016

  2. Slide 2: Highlights FY 2015

    HIGHLIGHTS FY 2015 Continued strong operational performance; transformation phase completed Solid operations despite challenging retail environment  Positive L-f-L rental growth in all countries: +140 bps above indexation  Occupancy trending up in Q4, +1.1% for acquisitions in Fra and NL, on track

  3. Slide 3: Highlights FY 2015

    HIGHLIGHTS FY 2015 Financial performance FY 2015 FY 2014  Direct result per share €3.23 €2.97  Indirect result per share €(0.88) €(2.38) of which transaction costs €(1.11) €(1.74)  EPRA NAV per share €52.10 €54.35  Dividend per share €3.01 €2.87  LTV 37.5% 35.4% Operations  LFL growth sh. cent

  4. Slide 4: Strategy

    STRATEGY

  5. Slide 5: Strategy

    STRATEGY TRANSFORMATION COMPLETED  De-risk, Regroup, Growth strategy executed 2013 - 2015  Integration new portfolios France and NL completed  2015 operational targets reached FOCUS ON OPERATIONS  Occupancy, occupancy, occupancy 2016  Strengthen organisation  Optimise portfolio quality CAPI

  6. Slide 6: 2015 Targets Reached

    2015 TARGETS REACHED CONTINUE STRONG OPERATIONAL  LfL rental growth > 100bps above index  2015: 140bps PERFORMANCE  Occupancy 1% up per year (base: 93.5% after acquisitions)  +0.5% increase in Q4 2015 INTEGRATE  NRI French retail stabilise at €46m in 2015  2015: €45.7m ACQUISITIONS  LfL Frenc

  7. Slide 7: Focus on Operations

    FOCUS ON OPERATIONS  Execute business plan per centre  Leveraging key-account relationships OCCUPANCY, OCCUPANCY, OCCUPANCY  Bring key-functions in-house and decrease service charges  Add amenities and facilities to meet Wereldhave standards  Adding COO to board of management  CEO Wereldhave B

  8. Slide 8: Capital Recycling

    CAPITAL RECYCLING REVIEW STRATEGIC OPTIONS ITIS  Hold/sell analysis  Sell Belgian offices and smaller Dutch centres (non-core) gradually ACQUISITIONS DEPENDENT ON  Buy convenience shopping centres in core countries only DISPOSALS  No new countries at least until 2017  LTV maintained below 40% M

  9. Slide 9: Operations

    OPERATIONS

  10. Slide 10: Visitors

    VISITORS 2015 2014 Growth Market (In #m) (In #m) (In %) (In %) Belgium 14.3 14.2 1.1% (1.4%) Finland 16.9 16.3 3.6% 0.4% France 40.8 41.3 (1.1%) (1.0%) Netherlands 81.5 79.0 3.1% (0.1%) Total 153.5 150.8 1.8%  Belgium: footfall up 1.1% vs a decrease of 1.4% in the market (top 15 shopping centres) 

  11. Slide 11: Occupancy

    OCCUPANCY Portfolio value* Q4 2015 Q3 2015 Q4 2014 Q4 2015 (In %) (In %) (In %) (In €m) (In %) Belgium 94.9% 94.4% 94.6% 608 17% Finland 92.5% 93.2% 92.1% 616 17% France 91.1% 90.0% 91.2% 852 23% Netherlands 95.3% 94.7% 98.0% 1,458 40% Shopping centres 93.8% 93.3% 93.9% 3,534 97% Belgium 93.4% 91.4%

  12. Slide 12: New Store Openings

    NEW STORE OPENINGS Mango, Save, Rivetoile Côté Seine Finlayson, Helixir, Itis Rivetoile 12

  13. Slide 13: L-f-L Rent Shopping Centres

    L-f-L RENT SHOPPING CENTRES 140 bps above indexation 2.3% 1.8% 1.3% 1.8% Above 0.7% 1.4% Indexation 2.3% 1.3% Indexation 0.0% 0.5% 0.6% 0.4% Finland Belgium Netherlands Total 11 13

  14. Slide 14: Netherlands

    NETHERLANDS Key parameters shopping centres 2015 2014 Foto sh centre Net rental income € 54.8m € 38.1m LfL 1.3% 1.0% Occupancy 95.3% 98.0% Valuation result 0.8%* -4.9% NIY 5.8% 5.8% NIY (EPRA) 5.6% 6.0% Standing investments € 1,458m € 697m Under construction € 26m € 18m Roselaar, Roosendaal  Footf

  15. Slide 15: France

    FRANCE Key parameters shopping centres 2015 2014 Net rental income € 45.7m n.a. LfL n.a. n.a. Occupancy 91.1% 91.2% Valuation result 1.8% n.a. NIY 5.4% 5.5% NIY (EPRA) 5.0% 5.5% Standing investments € 852m € 832m Under construction - - Docks Vauban, Le Havre  Footfall decreased by 1.1%, in line wit

  16. Slide 16: Belgium

    BELGIUM Key parameters shopping centres 2015 2014 Net rental income € 35.7m € 28.0m LfL 1.8% 3.2% Occupancy 94.9% 94.6% Valuation result 1.6% -0.2% NIY 5.9% 5.8% NIY (EPRA) 5.6% 5.7% Standing investments € 608m € 597m Under construction € 33m € 18m Nivelles, Nivelles  Footfall +1.1% vs market at -1

  17. Slide 17: Finland

    FINLAND Key parameters shopping centres 2015 2014 Net rental income € 28.6m € 27.9m LfL 2.3% 6.7% Occupancy 92.5% 92.1% Valuation result -2.1% 0.0% NIY 4.7% 4.6% NIY (EPRA) 4.7% 5.2% Standing investments € 616m € 605m Under construction - -  Footfall (+3.6%) and sales (+5%) continue to increase in

  18. Slide 18: Portfolio

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  19. Slide 19: Committed Development Pipeline

    COMMITTED DEVELOPMENT PIPELINE Commited Total Capex (net) Capex Fully let Percentage Year of investment so far spent 2015 NIY prelet completion (In €m) (In €m) (In €m) (In %) (in %) 0.0 Dutch redevelopment program (NL) 72.0 35.5 10.0 5.8% 2018 Dutch refurbishment capex 27.0 15.7 3.6 2018 Tournai - r

  20. Slide 20: New, Refreshed and Refurbished Portfolio

    NEW, REFRESHED AND REFURBISHED PORTFOLIO* Dutch refurbishment program (2013 – 2018) 98%  Refurbishment of Kronenburg, Eggert, Etten-Leur, De Roselaar and Koningshoek completed or in final stages 85%  Winkelhof and De Koperwiek to be upgraded 2016-17 Redevelopment of Itis (2014) 66%  Successfully

  21. Slide 21: Milestones

    MILESTONES Opening refurbished store ANWB, Eggert New websites 16 Dutch & 6 French shopping centres Opening H&M, Cityplaza, Nieuwegein Opening new passage at Koningshoek, Maassluis 21

  22. Slide 22: Financials

    FINANCIALS

  23. Slide 23: Direct Result (in € per share)

    DIRECT RESULT (IN € PER SHARE) 1.70 -0.15 0.11 0.08 -0.06 -0.38 -1.04 3.23 2.97 2014 Acquisitions Disposals From Standing General costs Interest costs Other 2015 development portfolio  Acquisitions: 2014: shopping centre Vier Meren (Jan), part of sh. centre Koperwiek (March), C&A unit Roosendaal (A

  24. Slide 24: Indirect Result (in € per share)

    INDIRECT RESULT (IN € PER SHARE) Valuation results + Other income and Accrued interest Fair value adjustments Recycling FX and results on disposals expenses convertible derivatives Taxes/other revaluation reserve Total indirect result -0.22 -0.08 -0.03 -0.15 -0.06 -0.34 -0.88  Fair value adjustment

  25. Slide 25: EPRA NAV (in € per share)

    EPRA NAV (IN € PER SHARE) 54.35 -2.87 52.10 -0.88 0.14 3.23 -1.5 -0.37 Q4 2014 Dividend 2014 Interim € 250m Direct Indirect Other Q4 2015 dividend 2015 share issue result result IFRS NAV* EPRA NNNAV*  Dec 2015: € 50.05  Dec 2015: € 50.38  Dec 2014: € 52.07  Dec 2014: € 52.19 * Reconciliation IFR

  26. Slide 26: Valuation

    VALUATION Valuation* Revaluation** Revaluation NIY*** EPRA NIY**** ∆ ∆ 2015 2014 H2 H1 2015 2015 2015 (In €m) (In €m) (€m) (€m) (In %) (In %) (In %) Belgium 641 616 (6.6) (In €m) 16.4 (In €m) 1.6 5.9 5.6 Finland 616 605 (16.8) 3.6 -2.1 4.7 4.7 France 852 832 6.6 8.4 1.8 5.4 5.0 Netherlands 1,483 715

  27. Slide 27: FY 2015 Income Statement

    FY 2015 INCOME STATEMENT FY 2015 FY 2014 Direct Indirect Direct Indirect (In €m) 2015 2015 2014 2014 Gross rental income 207.3 - 131.6 - Service costs charged 37.3 - 22.7 - Total revenue 244.6 - 154.3 - Service costs paid (42.2) - (25.1) - Property expenses (17.8) - (10.4) - Total expenses (59.9) -

  28. Slide 28: Debt Profile

    DEBT PROFILE

  29. Slide 29: Debt Profile

    DEBT PROFILE Key parameters Q4-15 Q3-15 Covenants Interest bearing debt * € 1,515m € 1,928m  Decrease in interest bearing debt due to the sale of the French offices Noda and Le Cap Average cost of debt 2.2% 2.2%  In Q4 new financing was realised: a five-year € 75m bank loan at 1% Borrowing capacit

  30. Slide 30: Outlook

    ae WERELDHAVE

  31. Slide 31: Earnings Outlook 2015-2016

    EARNINGS OUTLOOK 2015-2016 CAGR 7% - 10% CAGR 4-6%  Direct result p/s growth 2016 3.23 between 6-9% 3.01 2.97 2.87  Dividend p/s growth 2016 between 4-6%  Based on current portfolio 2014 2015 2016 Direct result per share Dividend per share 31

  32. Slide 32: Appendix

    ye WERELDHAVE

  33. Slide 33: Company Profile

    COMPANY PROFILE OVERVIEW PORTFOLIO VALUE DISTRIBUTION (PRO-FORMA) 1  Independent property company, founded in 1930  First REIT in Europe  Investing & operating convenience shopping centres in the Netherlands, France, Belgium and Finland €627m €1,452m  ‘REIT’ status in the Netherlands, Belgium an

  34. Slide 34: Netherlands Largest Core Market

    NETHERLANDS LARGEST CORE MARKET 41% 24% 17% 18% NETHERLANDS FRANCE BELGIUM FINLAND Shopping Shopping Shopping Shopping Office centre centre centre centre # of assets 20 # of assets 6 # of assets 8 4 # of assets 1 Average GLA Average Average GLA (m2) 23,336 Average GLA (m2) 33,750 19,682 19,602 104,0

  35. Slide 35: Top 10 Properties

    TOP 10 PROPERTIES TOP 10 PROPERTIES # Shopping centre City Country Value Dec 2015 1 ITIS HELSINKI, FIN € 616m 2 CITY PLAZA NIEUWEGEIN NL € 205m 3 RIVETOILE STRASBOURG FRA € 192m 4 DOCKS 76 ROUEN FRA € 186m 5 SAINT-SEVER ROUEN FRA € 179m 6 BELLE-ILE LIEGE BEL € 163m 7 MIDDENWAARD H’HUGOWAARD NL € 154

  36. Slide 36: Top 10 Tenants

    TOP 10 TENANTS TOP 10 TENANTS # Tenant Branche % Dec 2015 1 AHOLD-DELHAIZE* FOOD/GROCERIES 3.9% 2 HENNES & MAURITZ FASHION 3.2% 3 BLOKKER HOUSEHOLD GOODS 2.8% 4 C&A FASHION 1.8% 5 AS WATSON GROUP DRUGSTRORE 1.8% 6 STOCKMANN DEPARTMENT STORE 1.8% 7 EXCELLENT RETAIL BRANDS FASHION 1.6% 8 HEMA DEPARTME

  37. Slide 37: Lease Expiry Profile

    LEASE EXPIRY PROFILE Offices 0.2% Shopping Centres 1.4% 0.5% 0.5% 0.3% 0.8% 13.0% 0.3% 0.1% 0.4% 12.0% 11.3% 10.9% 10.8% 8.8% 7.8% 6.3% 6.5% 6.3% 0.3% 2.3% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 > 2024  Belgium 1.8% of expiries in 2016; 70% of retail contracts already renewed or re-let,

  38. Slide 38: NAV Reconciliation (IFRS – EPRA)

    NAV RECONCELIATION (IFRS – EPRA) (In € per share) IFRS NAV 31 December 2015 50.05 Effect of conversion - Diluted NAV 50.05 Fair value derivatives 0.13 Deferred tax 1.92 EPRA NAV 52.10 Fair value derivatives -0.13 Fair value interest bearing debt -0.44 Deferred tax -1.15 EPRA NNNAV 31 December 2015 5

  39. Slide 39: Dominant Convenience Shopping Centres

    DOMINANT CONVENIENCE SHOPPING CENTRES Gain market share in the micro environment 1. 2. 3. 4. BETWEEN 20,000 AND DOMINANT IN ITS TAILORED TO THE MICRO FOOD ANCHORED 50,000M² CATCHMENT ENVIRONMENT m² GLA per shopping centre Average GLA split1 Catchment area >100,000 Socio-demographic adaptation inhabi

  40. Slide 40: Benefits of Convenience Shopping

    BENEFITS OF CONVENIENCE SHOPPING 1. 2. 3. RESILIENT EFFECT DRIVES FOOTFALL THROUGH THE CYCLE FROM E-COMMERCE Footfall # per week1 The Netherlands2 Wereldhave categories in portfolio3 Food 20% Food 30.000 110 market Services 8% 27.500 F&B 4% Internet resilient 32% Fashion & accessoires 22% 20.000 Hea

  41. Slide 41: Focus on Dominant Convenience Centres

    FOCUS ON DOMINANT CONVENIENCE CENTRES AVERAGE SHOPPING CENTRE SIZE FOR RETAIL PLAYERS IN CONTINENTAL EUROPE (GLA IN M²) 44,176 26,871* 26,687 19,788 16,625 14,879 12,602 5,690 1 2 Source Company information, based on retail assets only for all peers Notes 1. Incl. Corio and recent disposals, based o

  42. Slide 42: CSR Framework

    CSR FRAMEWORK SEINE ARGENTEUIL CENTRE

  43. Slide 43: CSR Framework

    CSR FRAMEWORK PILLAR TARGETS YEAR  Improve energy efficiency by 30% 2020 BRICKS  BREEAM-Outstanding r(e)developed offices >2014  BREAAM Very Good shopping centres 2020  Employee satisfaction scores of 7.5 or higher 2017 HR  Increase average training to 25 hours 2015  Increase % female managers

  44. Slide 44: CSR Progress

    CSR PROGRESS PILLAR PROGRESS Q4 2015  LfL energy consumption -10.3% from Oct 2014 to Oct 2015 BRICKS  BREEAM certificate Very Good : 52% of shopping centres now certified. A further 12 centres planned to be done in 2016  New employee survey planned for Q2 2016 HR  Average number of training hour

  45. Slide 45: Contact Details

    CONTACT DETAILS PRESS IINVESTORS & ANALYSTS Richard Beentjes Jaap-Jan Fit Richard.beentjes@wereldhave.com Jaapjan.fit@wereldhave.com T +31 20 702 78 34 T +31 20 702 78 43 Investor.relations@wereldhave.com www.wereldhave.com 45

  46. Slide 46: WERELUDHAVE

    F ¥y WERELUDHAVE

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