Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — H1 2023 Earnings Presentation
38 slides from Eurocommercial Properties Nv's earnings presentation, Aug 25, 2023
Slide 1: Half Year Results 2023
Half Year Results 2023 25 August 2023
Slide 2: Agenda
AGENDA 1 Introductions Luca Lucaroni, Investor Relations Director 2 Results review Evert Jan van Garderen, CEO 3 Portfolio & ESG update Peter Mills, CIO 4 Financial review Roberto Fraticelli, CFO 5 Closing remarks Evert Jan van Garderen, CEO 6 Q&A 2
Slide 3: Results review
Results review Evert Jan van Garderen
Slide 4: The geographical portfolio
The geographical portfolio (% of value) Italy France Sweden Belgium 44% 21% 20% 15% 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, Karlstad 3 Fiordaliso, Rozzano, Milan 3 Les Atlantes
Slide 5: Solid operational performance in H1 2023
Solid operational performance in H1 2023 Retail sales Rental growth Renewals and relettings +9.2% vs 2022 8.2% 6.7% Rental uplift on renewals and +11.7% vs 2019 (compared to 2.9% in the 12 months to June 2022) relettings 235 lease transactions Vacancy OCR Rent collection 1.5% 9.5% 98% (same level as
Slide 6: Strong retail sales growth across all markets
Strong retail sales growth across all markets Retail sales comparison HY 2023 vs HY 2022 and HY 2019 18.0% 16.5% 16.0% 15.0% 14.0% 12.8% 11.7% 12.1% 12.0% 10.8% 10.0% 9.2% 8.0% 6.6% 6.0% 5.3% 3.7% 4.0% 2.0% 0.0% TOTAL Belgium France Italy Sweden H1 2023 vs H1 2022 H1 2023 vs H1 2019 6
Slide 7: All sectors showing positive growth
All sectors showing positive growth Retail sector sales comparison HY 2023 vs HY 2022 and HY 2019 160.0% 142.3% 140.0% 123.0% 123.0% 125.1% 122.5% 117.7% 116.1% 120.0% 111.1% 116.0% 111.4% 114.8% 112.7% 105.6% 106.3% 106.9% 106.2% 104.7% 103.6% 103.9% 98.7% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Fashio
Slide 8: Strong rental growth mainly from indexation
Strong rental growth mainly from indexation (12 months to 30 June 2023) Like-for-like rental growth Overall 8.2% Belgium 9.3% France 2.8% Italy 10.3% Sweden 9.4% Like-for-like rental growth is calculated based on 12-month data and excludes the impact of acquisitions, disposals and development projec
Slide 9: Renewals and relettings
Renewals and relettings Strong tenant demand producing positive lease spreads Number of Average rental % of leases ➢ 235 lease transactions achieving a renewals and uplift on renewed and rental uplift of 6.7% relettings renewals and relet (MGR) relettings ➢ 62 lettings to new retailers achieving an
Slide 10: EPRA vacancies
EPRA vacancies EPRA vacancy rate remains low at 1.5%, ranging between 0.8% and 2.4%. EPRA vacancy EPRA vacancy EPRA vacancy EPRA vacancy at at at at 30 Sep 2022 31 Dec 2022 31 Mar 2022 30 Jun 2023 Overall 1.5% 1.5% 1.8% 1.5% Belgium 1.7% 1.7% 1.7% 1.8% France 2.2% 2.9% 3.3% 2.4% Italy 0.8% 0.6% 1.0%
Slide 11: Occupancy cost ratio (OCR)
Occupancy cost ratio (OCR) Low OCRs support sustainable rental income and low vacancy Occupancy cost ratio Overall 9.5% Belgium 14.8% France 10.1% Italy 9.4% Sweden 7.6% The total occupancy cost ratio is defined as rent plus marketing contributions, service charges and tenant property taxes as a pro
Slide 12: Rent collection
Rent collection Full rent collection includes pass through of indexation % of invoiced rent collected H1 2023 Belgium 99% France 97% Italy 98% Sweden 100% Total 98% 12
Slide 13: Portfolio and ESG update
Portfolio and ESG update Peter Mills, CIO
Slide 14: A well diversified portfolio
A well diversified portfolio 24 shopping centres in 4 countries Geographical (by value) 5 Flagship centres* 19 suburban hypermarket anchored shopping centres* I Gigli/Carosello/Fiordaliso/Woluwe Shopping/ Passage du Havre Italy France Belgium Sweden Fashion & Shoes = 36% Essential and Everyday Retai
Slide 15: Valuations
Valuations Stable valuations – increased rental income balanced by higher yields Net value Valuation change EPRA yields 30 Jun 2023 From NIY Topped-up € million 31 Dec 2022 Belgium 563 -2.8% 4.7% 5.0% France 814 0.4% 5.2% 5.3% Italy 1,661 1.6% 6.2% 6.3% Sweden 751 -2.7% 5.9% 5.9% Overall 3,789 -0.2%
Slide 16: Valuation split
Valuation split 5 dominant low yielding flagships 5 Flagships Net value (€M) 30 June 2023 EPRA net initial yield (%) EPRA topped up yield (%) Woluwe Shopping (Belgium) 1,738 Passage du Havre (France) I Gigli, Carosello, Fiordaliso (46% of the portfolio) 5.3 5.5 (Italy) 19 higher yielding hypermarket
Slide 17: Autumn 2023 completion of final phase of Valbo project
Autumn 2023 completion of final phase of Valbo project Valbo, Gävle ❑ Phase 1 – Improved masterplan and circulation (completed) ❑ Phase 2 – Refurbishment of malls and common areas (completed) ❑ Phase 3 – 1,000m² extension, 7 prelet shops, renovation of car park and external façade – completion autum
Slide 18: Leasing focus: Lifestyle
Leasing focus LIFESTYLE The pandemic was a catalyst for the rapid growth in lifestyle fashion, sport and fitness. 18
Slide 19: Leasing focus: F&B
Leasing focus F&B F&B has fully recovered and is expanding with a range of new brands, concepts and formats. 19
Slide 20: Leasing focus: Value retail
Leasing focus VALUE RETAIL With household budgets under pressure, the low price/value retail sector continues its expansion. 20
Slide 21: Environmental, social and governance
Environmental, social and governance Recognitions AEX® ESG Index 21
Slide 22: ESG update: Be Green
ESG update BE GREEN RECENT INNOVATIONS Objectives and targets Objective Status Key facts • Installation of solar panels at Carosello and I Gigli will be connected to the grid in autumn 2023 Operate carbon neutral by On target 15% carbon emissions 2030 reduced (market bases vs. 2021) • Relamping in a
Slide 23: ESG update: Be Engaged
ESG update BE ENGAGED Objectives and targets • Shopping centres increasingly form an integral part Objective Status Key facts of their local communities Maintain all customer On target 8,000 customers participated in satisfaction score above 7.5 engagement surveys in 2022 by 2025 8.3 average score •
Slide 24: ESG update: Be Responsible
ESG update BE RESPONSIBLE Objectives and targets Key facts Objective Status Key facts • Green Finance Framework developed to issue Green Zero breaches against the On target Zero breaches in 2022 Code of Conduct annually Finance Instruments - Second party opinion issued by Create an attractive and On
Slide 25: Financial review
Financial review Roberto Fraticelli, CFO
Slide 26: Financial Performance H1 2023
Financial Performance H1 2023 (at 30 June 2023) Income statement Financial position (€ million) 06.2023 06.2022 (€ million) 06.2023 12.2022 Rental income* €107.5 €101.2 Property investments* €3,594 €3,643 Net property income* €89.1 €85.5 Net borrowings* €1,490 €1,454 Net interest expenses* €21.8 €19
Slide 27: Financial summary at 30 June 2023
Financial summary at 30 June 2023 Proportionally consolidated* Average term of hedges Average overall interest rate Total net borrowings (incl. margin) €1.583 billion 5.2 years 2.9% Long term borrowings maturity and amortisation schedule (January 2024 – December 2032) Lenders’ Share 0 100 200 300 40
Slide 28: Interest rate hedging
Interest rate hedging The development of the Company’s interest rate hedging ratio. 86% 84% 82% 78% 76% 74% 31/12/2020 30/06/2021 31/12/2021 30/06/2022 31/12/2022 30/06/2023 28
Slide 29: Loan to value ratio at 41.8%
Loan to value ratio at 41.8% 43.8% 41.8% 41.8% 40.8% 42.6% 42.3% 40.4% 40.4% 40.4% 40.4% 41.2% 39.4% 39.4% 40.8% 39.3% 41.5% 40.1% 38.9% 39.4% 39.4% 39.3% 40.1% 39.1% 37.9% 38.0% 38.0% 37.8% 38.0% 37.9% 36.5% 31-12-20 31-12-21 31-03-22 30-06-22 31-12-22 31-03-23 31-06-23 31-12-22 31-03-23 31-06-23 L
Slide 30: ICR and net debt/EBITDA ratio
ICR and net debt/EBITDA ratio 12.0 3.90 3.88 3.87 11.1 10.3 3.80 10.0 3.69 8.9 3.70 8.1 8.0 3.60 3.52 3.50 6.0 3.40 4.0 3.30 3.20 2.0 3.10 - 3.00 31/12/2020 31/12/2021 31/12/2022 30/06/2023 Net debt / EBITDA ratio ICR 30
Slide 31: Direct Investment Result comparison of 2023 with 2022
Direct Investment Result (DIR) comparison of 2023 with 2022 (€/million) Amounts are in € million and are reported according to proportional consolidation 31
Slide 32: EPRA Net Tangible Asset bridge
EPRA Net Tangible Asset (€ per share) EPRA NTA Bridge Woluwe minority interest 32
Slide 33: Closing remarks
Closing remarks Evert Jan van Garderen, CEO
Slide 34: Dividend and 2023 direct investment result guidance
Dividend and 2023 direct investment result guidance • Guidance confirmed - direct investment result for 2023 between €2.25 and €2.35 per share • Intention to offer shareholders the possibility of opting for a stock dividend instead of a cash dividend for the 2023 interim dividend payable in January
Slide 35: Financial Calendar
Financial Calendar 3 November 2023 - Q3 Results 22 March 2024 – Full Year Results 2023
Slide 36: Q&A
Q&A
Slide 37: 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 38: 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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