Plaza Centers N.v. · LSE:PLAZ
Plaza Centers — H1 2012 Earnings Presentation
38 slides from Plaza Centers's earnings presentation, Aug 22, 2012
Slide 1: Results for the six months period ended 30 June 2012
Results for the six months period ended 30 June 2012 22 August 2012
Slide 2: Agenda
Agenda SECTION 1 Financial Highlights SECTION 2 Operational Highlights SECTION 3 Summary and Outlook APPENDIX A Forecasted Cash Flow APPENDIX B Projects Overview 2
Slide 3: Financial Highlights
Financial Highlights Total assets of €1.14 billion (31 December 2011: €1.3 billion); reduction driven by completion of sale of 47 out of 49 assets within US portfolio Revenues from operations increased by 42% to €33.7 million (30 June 2011: €23.7 million) as a result of higher rental income deri
Slide 4: Financial Overview
Financial Overview Results H12012 H12011 € ‘000 € ‘000 Total revenues (1) 31,336 28,623 Write-down of trading properties(2) 2,799 3,096 Cost of operations (3) 15,505 12,525 Gross profit 13,032 13,002 (1) 2012: Fantasy Park - €3.3m, CEE rent and management fee - €12.4m, US rent - €13.6m, US revaluati
Slide 5: Financial Overview (Cont.)
Financial Overview (Cont.) H12012 H12011 € ‘000 € ‘000 Administrative expenses(1) 11,457 8,628 Other income (expenses), net(2) 81 (1,487) Results from operating activities 1,656 2,887 Net finance income (costs)(3) (12,868) 29,684 Share of loss of equity accounted investees (14) (137) Tax benefit(4)
Slide 6: Financial Overview (Cont.) - Notes to the Results
Financial Overview (Cont.) NOTES TO THE RESULTS (1) Administrative expenses increase in 2012 due to the rise in cost of non cash share-based payments to €3.2 million (2011: €0.7 million) (2) 2012 – Include accounting gain in respect of the sale of US assets – €0.4 million (3) 2012 – Net finance loss
Slide 7: Current cash balances - €110 million
Financial Overview (Cont.) Balance sheet and cash flow Net assets of €534.4 million (31 December 2011: €550.2 million), with decrease primarily due to 2012 losses, as well as utilisation of EUR USD foreign currency translation reserve Cash and short term deposits (including restricted cash and a
Slide 8: Key Highlights 2011 - Grand opening of Torun Plaza
Key Highlights 2011 - Grand opening of Torun Plaza 8
Slide 9: Key Highlights 2012 – Operational
Key Highlights 2012 – Operational Plaza’s first retail scheme in Serbia, Kragujevac Plaza, was completed and opened to the public on 20 March 2012. The 22,000 sqm GLA centre was 90% let on opening, since when a further 8% of space has been leased and strong interest expressed in the remaining unit
Slide 10: Key Highlights 2012 - Grand opening of Kragujevac Plaza
Key Highlights 2012 - Grand opening of Kragujevac Plaza The first western style shopping and entertainment centre outside the capital Belgrade 10
Slide 11: Key Highlights 2012 – U.S Exit transaction
Key Highlights 2012 – U.S Exit transaction In January 2012, EPN reached an agreement to sell 47 of its 49 US based shopping centres in a deal totalling US$1.428 billion The centres were acquired by BRE DDR Retail Holdings LLC, a joint venture between Blackstone and DDR Transaction details: • P
Slide 12: Key Highlights since the period end
Key Highlights since the period end As a part of its efforts to deleverage, the Company has disposed of the Ramstore development in Sofia, Bulgaria, therefore extinguishing €6m of bank loan debt from the balance sheet Completion of the sale of EPN’s two remaining US based shopping centres for US
Slide 13: Active shopping and entertainment centres
Active shopping and entertainment centres Liberec Plaza, Czech Republic Riga Plaza, Latvia GLA – 17,000 sqm GLA - 49,000 sqm Occupancy – 78% Occupancy – 93% Zgorzelec Plaza, Poland Suwalki Plaza, Poland GLA – 13,000 sqm GLA - 20,000 sqm Occupancy – 79% Occupancy – 89% 13
Slide 14: Active shopping and entertainment centres
Active shopping and entertainment centres Torun Plaza, Poland Kharadi Plaza (Matrix One), India GLA - 40,000 sqm GLA - 28,000 sqm Occupancy – 80% Sold – 70% Kragujevac Plaza, Serbia Koregaon Park Plaza (Mall), India GLA - 22,000 sqm GBA - 48,000 sqm Occupancy – 98% Occupancy – 85% 14
Slide 15: Building upon our successful business model
Building upon our successful business model 16 year track record of successfully developing, letting and selling shopping & entertainment centres in CEE now extended to new geographies through the Group’s activities in India and the US Ongoing ability to identify new opportunities to deliver sha
Slide 16: Operational Outlook
Operational Outlook Continuing focus on three key strategic aims - progress on targeted development programme, the active management of the investment portfolio and ongoing search for opportunities in the US market to acquire high-yielding properties which can be repositioned to enhance value Be
Slide 17: Market Outlook
Market Outlook Ongoing resilience in some of Plaza’s key operational territories, underpinned by the strength of occupier demand in our major markets; the acceleration of the Group’s development programme will only take place in the strongest markets With five developments in India due to be del
Slide 18: Outlook
Outlook “Whilst we remain mindful of the challenging global economic conditions, our cautious yet opportunistic approach will provide us with solid prospects to deliver value for our shareholders” 18
Slide 19: Appendix A: Forecasted Cash Flow
Appendix A: Forecasted Cash Flow
Slide 20: Expected cash flow for the coming two years
Expected cash flow for the coming two years H2 2012 €(m) 2013 €(m) H1 2014 €(m) Cash - Opening Balance - Headquarter level 86 34 34 Sources Proceeds from selling trading and investment properties 84 103 41 Cash flows from operating activities (1) 14 40 21 Issuance of new debentures - 40 - Total Sour
Slide 21: Expected NOI from properties (excluding US)
Expected NOI from properties (excluding US) Representing Total related debt Period H2 2012 2013 H1 2014 NOI upon completion €(m) €(m) €(m) €(m) €(m) Operating shopping and 12.3 27.7 9.3 30.3 201.6 entertainment centres Total 12.3 27.7 9.3 30.3 201.6 21
Slide 22: Debt & Liquidity Structure as at 30 June, 2012
Debt & Liquidity Structure as at 30 June, 2012 Debt structure €(m) Debt Debentures 255(1) CEE – operating malls 178 CEE – projects under development and others 45 Bank Loans US 2 India 28 Debt related to financial instruments 17 Total Debt 525 Resources Liquid balances – consolidated 176 Financial i
Slide 23: Debentures Repayment Schedule
Debentures Repayment Schedule Debentures Repayment Schedule(1) €(m) 120.0 100.0 80.0 60.0 99.6 88.3(2) 40.0 72.5 65.6 20.0 10.9 10.4 0.0 2012 2013 2014 2015 2016 2017 (1) Including repayment of principal and interest on Israeli and Polish debentures (2) Circa . €76 million was repaid in July 2012 c
Slide 24: Appendix B: Current Projects
Appendix B: Current Projects
Slide 25: Portfolio Summary – by Country (excluding US)
Portfolio Summary – by Country (excluding US) Total portfolio of 35 assets in 9 countries 1 Offices Under Development 3 Completed & Active 1 8 7 1 4 6 5 3 1 1 2 2 1 1 1 Romania Poland India Hungary Czech Serbia Bulgaria Greece Latvia Republic 25
Slide 26: Projects overview – Completed Projects
Projects overview – Completed Projects Torun Plaza (Poland) Kragujevac Plaza (Serbia) City: Torun, Poland City: Kragujevac (Serbia) Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 40,000 (GLA) Size: 22,000 (GLA) Plaza Share: 100% Plaza Share: 100%
Slide 27: Projects overview – Completed Projects
Projects overview – Completed Projects Liberec Plaza (Czech Republic) Riga Plaza (Latvia) City: Liberec, Czech Republic City: Riga, Latvia Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 17,000 (GLA) Size: 49,000 (GLA) Plaza Share: 100% Plaza Share:
Slide 28: Projects overview - Poland
Projects overview - Poland Lodz Plaza City: Lodz Type: Shopping & entertainment centre Size: 45,000 (GLA) Plaza Share: 100% Completion Date: 2014 - 2015 Status: Planning and permits stage Leszno Plaza Kielce Plaza City: Leszno City: Kielce Type: Shopping & entertainment centre Ty
Slide 29: Projects overview – Serbia
Projects overview – Serbia Belgrade Plaza Sport Star Plaza City: Belgrade City: Belgrade Type: Mixed use (offices, Hotel & retail) Type: Shopping & entertainment centre Size: 70,000 (GBA) Size: 40,000 (GLA) Plaza Share: 100% Plaza Share: 100% Completion Date: 2015 Completion Date
Slide 30: Projects overview – India
Projects overview – India Koregaon Park Plaza Kharadi Plaza City: Pune City: Pune Type: Mixed use (Shopping, entertainment & office) Type: Office Size: 110,000 (GBA) Size: 250,000 (GBA) Plaza Share: 100% Plaza Share: 50% Status: Operating Completion Date: 2012 - 2015 Status: Un
Slide 31: Projects overview – India
Projects overview – India Bangalore Chennai City: Bangalore City: Chennai Type: Residential Type: Mixed use (residential & retail) Size: 320,000 (GBA) Size: 1,060,000 (GBA) Plaza Share: 23.75% Plaza Share: 38% Completion Date: 2013-2018 Completion Date: 2014-2018 Status: Planni
Slide 32: Projects overview - Romania
Projects overview - Romania Casa Radio Timisoara Plaza City: Bucharest City: Timisoara Type: Mixed use Type: Shopping & entertainment centre Size: 600,000 (GBA) Size: 38,000 (GLA) Plaza Share: 75% Plaza Share: 100% Completion Date: 2014-2016 Completion Date: 2014 - 2015 Status:
Slide 33: Projects overview - Romania
Projects overview - Romania Csiki Plaza Targu Mures Plaza City: Targu Mures City: Miercurea Ciuc Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 30,000 (GLA) Size: 14,000 (GLA) Plaza Share: 100% Plaza Share: 100% Completion Date: 2015 Status: Awa
Slide 34: Projects overview - Hungary
Projects overview - Hungary Dream Island Arena Extension City: Budapest City: Budapest Type: Business and leisure resort Type: Office Size: 350,000 (GBA) Size: 40,000 (GLA) Plaza Share: 43.5% Plaza Share: 100% Completion Date: 2014-2016 Completion Date: 2015 Status: Initial exc
Slide 35: Projects overview – Bulgaria
Projects overview – Bulgaria Shumen Plaza City: Shumen Type: Shopping & entertainment centre Size: 20,000 (GLA) Plaza Share: 100% Completion Date: 2015 Status: Planning and permits stage 35
Slide 36: Projects overview – Greece
Projects overview – Greece Pireas Plaza City: Athens (Greece) Type: Shopping & entertainment centre Size: 26,000 (GLA) Plaza Share: 100% Completion Date: 2015 (subject to availability of external financing) Status: Plannning stage 36
Slide 37: Projects overview – Residential Projects
Projects overview – Residential Projects Roztoky (Czech Republic) Prague 3 (Czech Republic) City: Prague, Czech Republic City: Prague, Czech Republic Type: Residential Type: Residential Size: 14,000 (GBA) Size: 61,600 (GBA) Plaza Share: 100% Plaza Share: 100% Completion Date: 2015
Slide 38: Projects overview – Office buildings
Projects overview – Office buildings David House (Hungary) Palazzo Ducale (Romania) City: Budapest, Hungary City: Bucharest, Romania Type: Office Type: Office Size: 2,000 (GLA) Size: 700 (GLA) Plaza Share: 100% Plaza Share: 100% Status: Operating Status: Operating Prague 3 (Czech