Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — H1 2017/18 Earnings Presentation
22 slides from Eurocommercial Properties Nv's earnings presentation, Feb 9, 2018
Slide 1: Half year results summary 2017/2018
Half year results summary 2017 / 2018 9 February, 2018
Slide 2: A strong first half – financially and strategically
Half year results 2017/18 A strong first half – financially and strategically 2 Earnings (Direct investment result) Net property income (versus first half 2016/17) +9.8% +5.9% Earnings increased +8.4% to €1.16 per depositary receipt. Like-for-like rental growth (12 months) Retail sales growth (versu
Slide 3: Rental growth
Half year results 2017/18 Rental growth 3 12 months to December 2017 Overall Average rental uplift on % of total leases Number of relettings like-for-like relettings and renewals relet and renewed and renewals rental growth Overall 20.2% 17% 286 +4.1% France 12.8% 15% 73 +1.9% Italy 23.7% 18% 163 +5
Slide 4: Rental indexation returning
Half year results 2017/18 Rental indexation returning 4 ECP Rental indexation by calendar year, 2010-2018 4,00% 3,00% 2,00% 1,00% 0,00% 2010 2011 2012 2013 2014 2015 2016 2017 2018 -1,00% -2,00% FRANCE ITALY SWEDEN
Slide 5: Industry-leading, consistently low vacancy rate
Half year results 2017/18 Industry-leading, consistently low vacancy rate 5 Strong demand among retailers for space in our well-located shopping centres 2012 2013 2014 2015 2016 2017 ECP 98.6% 99.1% 99.5% 99.4% 99.5% 99.3% France 98.6% 98.7% 99.1% 98.6% 99.4% 99.3% Italy 99.2% 99.5% 99.6% 99.8% 99.7
Slide 6: Retail sales growth
Half year results, 2016/17 Retail sales growth 6 On a like-for-like basis Twelve months to 31 December 2017 Six months to 31 December 2017 Overall +0.9% +1.9% France +0.9% +2.6% Italy +0.4% +1.4% Sweden +3.1% +2.7% *Excluding hypermarkets, Systembolaget and extensions/redevelopments
Slide 7: Stable Occupancy Cost Ratio (OCR)
Half year results 2017/18 Stable Occupancy Cost Ratio (OCR) 7 As at 31 December 2017 10% 8,4% 8,7% 8,4% 7,9% 8% 6% 4% 2% 0% Overall France Italy Sweden *Rent plus marketing contributions, service charges and tenant property taxes as a proportion of retail sales including VAT. Excluding hypermarkets,
Slide 8: Valuations
Half year results 2017/18 Valuations 8 12 and six months to 31 December 2017 Net initial yield Valuation increase including purchase costs* Six months Twelve months to 31 December 2017 to 31 December 2017 At 31 December 2017 Overall +0.2% +3.4% 4.9% France -0.5% +0.5% 4.4% Italy +0.3% +5.5% 5.2% Swe
Slide 9: Assets, value by market
Assets, value by market 9 As at 31 December 2017 France Italy Sweden Total Property value Property value Property value Property value €1,275m €1,675m €760m €3.7bn No. of properties No. of properties No. of properties No. of properties 12 12 7 31 % of portfolio % of portfolio % of portfolio 34% 45%
Slide 10: Our portfolio is changing
Year end results, 2017/18 Our portfolio is changing 10 Active programme of disposals and high-quality purchases 1. Eurocommercial disposes of properties which 2. Proceeds are then recycled into larger, high-quality offer limited potential for further improvement. shopping centres which attract the b
Slide 11: Eurocommercial's future portfolio
Eurocommercial’s future portfolio 11 Following completion of currently agreed acquisitions and disposals, further disposals are planned France Italy Sweden Belgium No. of properties No. of properties No. of properties No. of properties 12 8 8 1 % of portfolio % of portfolio % of portfolio % of portf
Slide 12: Investing in our assets to build future value
Half year results 2017/18 Investing in our assets to build future value 12 Committed and recently-completed projects Expected Expected cost Cost to date net return Property Project (€m) (€m) on cost Status Grand A, Amiens 5,000m2 extension - 18.2 6% Completed MoDo, Moisselles Refurbishment - 4.1 - C
Slide 13: Future development opportunities
Half year results 2017/18 Future development opportunities 13 Property Project Les Atlantes, Tours 6,000m2 extension and refurbishment Val Thoiry, Greater Geneva 25,000m2 extension and refurbishment Shopping Etrembières, Greater Geneva 4,000m2 extension and refurbishment Cremona Po, Cremona 10,000m²
Slide 14: Funding summary
Half year results 2017/18 Funding summary 14 At 31 December 2017 Shareholders’ adjusted net equity Loan book hedged for interest exposure Average overall interest rate (incl. margin) €2.2 billion 87% +2.6% Total net borrowings Average term of hedges Net debt to adjusted net equity ratio €1.4 billion
Slide 15: Non-current loan maturity schedule
Half year results 2017/18 Non-current loan maturity schedule 15 Amount, by calendar year Figures are provided on a proportionally consolidated basis
Slide 16: France performance overview
Half year results 2017/18 FRANCE 16 Performance overview Valuation of portfolio +0.5% Since December 2016 Net initial yield +4.4% (December 2016: 4.3%) Like-for-like rental growth (12 months) +1.9% Relettings and renewals +12.8% Like-for-like retail sales (six months) +2.6% Occupancy cost ratio 8.7%
Slide 17: Woluwe shopping centre, Brussels (Belgium)
Half year results 2017/18 Woluwe shopping centre, Brussels (Belgium) 17 Re-entry into the Belgian market via premier shopping centre in Brussels Gross investment amount incl. registration tax will be €468 million, initial yield of just under 4%, in line with Belgian market. Situated in Woluwe-Saint-
Slide 18: Woluwe: Excellent location, limited competition
Woluwe: Excellent location, limited competition 18 UPLACE Existing shopping 81,000sqm centres NEO 120,000sqm Potential projects in the pipeline Docks 41,000sqm Match City 2, 51,000sqm Carrefour WESTLAND 37,000sqm Delhaize
Slide 19: Italy performance overview
Half year results 2017/18 ITALY 19 Performance overview Valuation of portfolio +5.5% Since December 2016 Net initial yield +5.2% (December 2016: 5.6%) Like-for-like rental growth (12 months) +5.6% Relettings and renewals +23.7% Like-for-like retail sales (six months) +1.4% Occupancy cost ratio 8.4%
Slide 20: Sweden performance overview
Half year results 2017/18 SWEDEN 20 Performance overview Valuation of portfolio +3.8% Since December 2016 Net initial yield +5.0% (December 2016: 4.9%) Like-for-like rental growth (12months) +3.7% Relettings and renewals +17.1% Like-for-like retail sales (six months) +2.7% Occupancy cost ratio 7.9%
Slide 21: Valbo, Gävle (Sweden)
Half year results 2017/18 Valbo, Gävle (Sweden) 21 Dominant regional shopping centre Valbo is the only regional shopping centre in the county of Gästrikland, central Sweden, which serves a catchment of around 250,000 people. Well-positioned alongside the E16 motorway between Gävle and Sandviken. 37,
Slide 22: www.eurocommercialproperties.com
www.eurocommercialproperties.com
Eurocommercial Properties — H1 2017/18 Earnings Presentation on 6ix