Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — H1 2017 Earnings Presentation
51 slides from Nextensa's earnings presentation, Aug 24, 2017
Slide 1: Half-Year Financial results 2017
Half-Year Financial results 2017 24 August 2017
Slide 2: Contents
Contents 01 l Company profile 02 l Strategic vision 03 l Activity overview H1 2017 04 l Financial results H1 2017 05 l Share performance & reporting Appendices Leasinvest.be
Slide 3: Company profile
Company profile
Slide 4: Company Profile at 30/06/2017
Company Profile at 30/06/2017 6th largest BE-REIT/SIR/GVV 2nd largest real estate investor in Luxembourg listed on Euronext Brussels Fair value portfolio 30/06/2017 (incl. stake in Retail Estates) € 982,1 M Market capitalization > € 500 M Shareholders Ackermans & van Haaren (AvH) 30% AXA Belgium 29%
Slide 5: Corporate Structure
Corporate Structure Ackermans & van Haaren AXA Belgium 30% 29% 100% Leasinvest Real Estate Comm. VA Leasinvest Real Estate Management NV = BE REIT/SIR/GVV = asset management for LRE & LIL = buildings in Belgium Belgium Grand-duchy of Luxembourg Switzerland Austria Leasinvest Services NV 99% 100% Lea
Slide 6: Leasinvest at a glance
Leasinvest at a glance Occupancy Cost of debt 91.80% 2.94% Rental yield Average duration debt 6.41% 3.44y WALT Debt ratio 4.49y 59.92% Leasinvest.be Half-Year financial results| Leasinvest | 6
Slide 7: Portfolio Breakdown
Portfolio Breakdown Luxembourg Belgium Switzerland Austria Total Fair value (million €) 459,98 365,40 43,21 38,32 906,98 Retail 281,50 50,08 43,21 38,32 413,11 Offices 159,51 204,42 - - 363,94 Logistics/semi-industrial 18,97 110,97 - - 129,94 Number of sites 17 12 3 1 33 Duration leases till first b
Slide 8: Evolution portfolio & asset class breakdown
Evolution portfolio & asset class breakdown In € million 1,000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 2017 + RE BELGIUM (FV € M) LUXEMBOURG (FV € M) SWITZERLAND (FV € M) AUSTRIA (FV € M) Leasinvest.be Half-Year financial results| Lea
Slide 9: Strategic Vision
Strategic Vision
Slide 10: Strategic Vision
Strategic Vision Investment strategy Development strategy Commercial strategy Financial strategy OPPORTUNITY DRIVEN ORGANIC (RE)DEVELOPMENTS MAXIMIZE LEASE DURATION & MINIMIZE COST OF DEBT OCCUPANCY RATE SECURE EQUITY & DEBT FINANCING Retail LU - CH - AT Generating capital gains Offices LU - BE Impr
Slide 11: Shrewd acquisitions
01 Shrewd acquisitions Montoyer Brussels CBD (BE) Mercator (LU) reconstruction by 2018 €35M 2016: 21y usufruct with EP 2017: further capital gain expected Metro Group retail (LU) Tour&Taxis Royal Depot (BE) growth in LU portfolio € 50M - 3 buildings € 108M 2011: extension Diekirch landmark office bu
Slide 12: Creating value at 30-06-2017
02 Creating value at 30-06-2017 Equity evolution since creation 30/06/1999 400.000 362.754 320.082 300.000 200.000 146.661 130.444 110.239 100.000 -270.669 -30.229 -43.774 0 Shareholders' equity Capital increases Current result Dividend distributions Capital gains Belgium Capital gains Miscellaneous
Slide 13: Steady occupancy rate & rental duration
03 Steady occupancy rate & rental duration Occupancy rate Rental duration Luxembourg Belgium Switzerland Austria Total first Total H 2017 2016 Duration (years) Occupancy (%) Retail 98.0% 98.0% 100.0% 100.0% 98.1% 99.1% Offices 80.0% 87.0% 83.6% 93.6% Logistics 90.0% 98.3% 95.3% 97.2% Country 91.7% 9
Slide 14: Diversified tenant base
Diversified tenant base Tenants’ Retail Industry detailed Leasinvest.be Half-Year financial results| Leasinvest | 14
Slide 15: Funding characteristics at 30-06-2017
04 Funding characteristics at 30-06-2017 Funding diversification • Cost of debt: increases from 2.89% (31/12/2016) to 2.94%. • Total committed lines (incl. bonds) increased from €608M to €633M (30/06/2017) • Duration credit facilities decreased from 3,94y to 3,44y (30/06/2017) • Available headroom c
Slide 16: Hedging strategy
04 Hedging strategy • Debt financing at 30 June 2017 – 80% fixed ratio • Fixed rate debt (27%), interest rate swaps (47%) and cross currency swaps EUR/CHF (6%) • Duration: 5.80y (30/06/2017) from 6.30y (2016) Hedge ratio 100% 90% 80% 70% 60% Fix ratio 50% Hedge ratio 40% strategy 30% 20% 10% 0% juin
Slide 17: Dividend pay-out
05 dividend pay-out • Gross dividend 2016 increased +4.26% to €4.90 over 2016 (2015: €4.70) • Net dividend amounted to €3.43 (excl. 30% WHT), equaling 2015 €3.43 (excl. 27% WHT) • Gross dividend yield of 4.64% (31/12/2016) • Consolidated pay-out ratio 2016: 86.90% (2015: 90.00%) 85,00 6,00 80,00 5,5
Slide 18: Activity overview H1 2017
O 3 Activity overview H1 2017
Slide 19: Highlights H1 2017
Highlights H1 2017 KEY FIGURES • Montoyer 63 & Treesquare under construction and off lease • Rental income stable • Net result slightly higher & EPRA Earnings decreased INVESTMENTS • Acquisition of office building Mercator in the City of Luxembourg DIVESTMENTS • Divestment in process of largest part
Slide 20: Redevelopment Montoyer
Redevelopment Montoyer 63 • Building vacant: 12/2016 • Demolished as of Q1 2017 & fully reconstructed by Q3 2018 • Office project of 6,052 m² • BREEAM ‘excellent’ expected • One of few new buildings in CBD Brussels • Design SVR Architects (Antwerp) • Expected rental income of €1.6M or €250/m² • Fore
Slide 21: Redevelopment Treesquare
Redevelopment Treesquare • Building at Square de Meeûs vacant as of 07/2015 • Office project of 6,565 m² • Reconstruction works started in September 2016 to be finished Q4 2017 • BREEAM ‘excellent’ expected • Design: Assar Architects (Brussels) • One of few new buildings in Brussels CBD • Foreseen c
Slide 22: Acquisition Mercator office building
Acquisition Mercator office building • On 3 May 2017 acquisition 100% of the shares of the company Mercator Sàrl, owner of the office building located route d’Arlon, no 110 – 112 in the City of Luxembourg. • 8,641 m² of offices, spread across 5 floors and 104 parking spaces • Excellent location in t
Slide 23: Disposals in 2017
Disposals in 2017 SKF Tongeren Wommelgem • Divestments in 2017 foreseen for in total € 74 M • NDA signed with international investment fund for acquiring 3 logistic buildings in Wommelgem, Canal Logistics (phase 1) and SKF site in Tongres • Closing foreseen in Q3 2017 for € 60M • Prins Boudewijnlaan
Slide 24: Project Boomerang Strassen Shopping Center
Project Boomerang Strassen Shopping Center • Existing Einkaufszentrum Strassen (Route d’Arlon) being renovated into Boomerang Strassen Shopping Center with shops & restaurant • Retail project of 22,721 m² redevelopment in 2 phases (1st phase finished Q4 2017 & 2nd phase starts in 2020). • 1st phase:
Slide 25: Redevelopment Motstraat 30-32
Redevelopment Motstraat 30-32 • Office project of 14,174 m² • Part of the remaining office space will be equipped as a coworking space ‘De Mot’ based on our business center concept ‘The Crescent’ in Anderlecht and Ghent. • Redevelopment works started in September 2017 to be finished Q2 2018 • Actual
Slide 26: Leases status
Leases status Knauf LU • Extension of different rental contracts a.o. in Strassen & on Tour & Taxi CFM site • rental renewals and new rental contracts could also be concluded for the Knauf shopping centers in Schmiede and Pommerloch BE • Extension of all rental contracts retail park Brixton • Tour &
Slide 27: Financial results H1 2017
O4 Financial results H1 2017
Slide 28: Impacting elements on financials H1 FY17
Impacting elements on financials H1 FY17 • Lack of exceptional income in 2017 for € 1,237K i.e. (1) one-off withholding tax recovery on dividends Retail Estates in 2016 (€ 592K) and (2) reimbursement capital real estate certificates booked in results in H1 2016 (€ 569K) corrected only end 2016 in ot
Slide 29: Key consolidated financials H1 FY17
Key consolidated financials H1 FY17 Key figures balance sheet 30/06/2017 31/12/2016 Net asset value group share (€ 1,000) 362,754 356,407 Net asset value group share per share 73.4 72.2 Net asset value group share per share based on investment value 77.1 75.6 Net asset value group share per share EP
Slide 30: EPRA KPI's H1 2017
EPRA KPI’s H1 2017 EPRA PERFORMANCE MEASURES 30/06/2017 31/12/2016 30/06/2016 EPRA Earnings (in € per share) 2.69 5.65 2.91 EPRA NAV (in € per share) 81.60 81.90 80.00 EPRA NNNAV (in € per share) 73.09 70.93 68.92 EPRA Net Initial Yield (in %) 5.39% 5.82% 5.48% EPRA Topped up Net Initial Yield (in %
Slide 31: Consolidated income statement
Consolidated income statement Pro forma Consolidated statement of realized and unrealized results (in 1,000 €) 30/06/2017 30/06/2016 (+) Rental income 28,084 28,412 (+) Write-back of lease payments sold and discounted 0 0 (+/-) Related-rental expenses 0 -51 NET RENTAL INCOME 28,084 28,361 (+) Recove
Slide 32: Consolidated balance sheet
Consolidated balance sheet ASSETS (in 1,000 euro) 30/06/2017 31/12/2016 LIABILITIES (in 1,000 euro) 30/06/2017 31/12/2016 TOTAL SHAREHOLDERS’ EQUITY 362,754 356,407 I. NON-CURRENT ASSETS 934,254 896,179 I. SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO Intangible assets 2 4 THE SHAREHOLDERS OF THE PARENT COMP
Slide 33: Outlook FY 2017
Outlook FY 2017 As already mentioned in the annual financial report 2016 and except for extraordinary circumstances, the company expects to realize a lower net result and EPRA earnings* in 2017 in comparison with 2016, because of a temporary decrease in rental income as a consequence of the total re
Slide 34: Share performance & reporting
Share performance & reporting
Slide 35: Share performance
Share performance Leasinvest.be Half-Year financial results| Leasinvest | 35
Slide 36: Share performance
Share performance Leasinvest.be Half-Year financial results| Leasinvest | 36
Slide 37: Share performance
Share performance Leasinvest.be Half-Year financial results| Leasinvest | 37
Slide 38: Share performance: total returns comparison
Share performance Total returns comparison Leasinvest Real Estate - GPR General Quoted Belgium Index (LOC denominated) - GPR General Quoted Europe Index (LOC-denominated) since 31/12/1999 until 31/07/2017. 600 500 400 300 200 100 - December-99 December-00 December-01 December-02 December-03 December
Slide 39: Analyst recommendations
Analyst recommendations Bank Analyst Recommendation Target price Date Bank Degroof Petercam Herman van der Loos Hold € 104.00 16/05/2017 KBC Securities Alexander Makar Hold € 102.00 04/07/2017 ING Bank Netherlands Jaap Kuin Hold € 96.00 16/05/2017 Financial calendar 24/08/2017 Half-year financial re
Slide 40: Appendices
~~ Appendices
Slide 41: Our main Luxembourg buildings
Our main Luxembourg buildings OFFICE - Mercator Route d’Arlon 110-112 RETAIL - Hornbach RETAIL - Bâtiself Acquisition: May 2017 Bertrange Diekirch Acquisition: 2013 Acquisition: 2008 (Metro Lux) - Shopping center Knauf RETAIL Schmiede & Pommerloch North of Luxembourg Acquisition: 2012 - 2013 RETAIL
Slide 42: Our main Belgian buildings
Our main Belgian buildings OFFICE RETAIL OFFICE - The Crescent Anderlecht OFFICE - Motstraat - Tour & Taxis Lenniksebaan 451 - Anderlecht Motstraat 30 - Mechelen Avenue du Port 86C - Brussels Acquisition: 2004 Acquisition: 2002 Acquisition: 2015 RETAIL LOGISTIC - Brixton Business Park OFFICE - Monto
Slide 43: Our main Swiss and Austrian buildings
Our main Swiss and Austrian buildings RETAIL - Etoy - CH Route de Buchillon 2 Acquisition: 2014 RETAIL - Yverdon-les-Bains - CH Rue du Lac 12 Acquisition: 2014 RETAIL - Villeneuve - CH Route des Paquays Acquisition: 2014 RETAIL - Frun Park Asten - AU Handelsring 8-10 Asten Acquisition: 2016 Leasinve
Slide 44: Ackermans & Van Haaren
Ackermans & Van Haaren www.avh.be Ackermans & van Haaren (AvH) with a market cap in excess of € 5 billion (08/2017) is a diversified group active in 5 key sectors: - Infrastructure & Marine Engineering (DEME, one of the largest dredging companies in the world, CFE and Van Laere, two Belgian construc
Slide 45: Board of Directors & Management
Board of Directors & Management Directors nominated by AvH Jan Suykens chairman LRE, CEO & chairman Executive Committee Ackermans & van Haaren Piet Dejonghe member Executive Committee Ackermans & van Haaren Jean-Louis Appelmans executive director – CEO Leasinvest Real Estate Michel Van Geyte executi
Slide 46: Investor relations contacts
Investor relations contacts Management Tim Rens Chief Financial Officer Jean-Louis Appelmans Chief Executive Officer Tim Rens (36) joined Leasinvest Jean-Louis Appelmans (64) is CEO and executive director of Real Estate as CFO in May 2017. Leasinvest Real Estate (since inception 1999) and of Leasinv
Slide 47: Notes
Notes Leasinvest.be Half-Year financial results| Leasinvest | 47
Slide 48: Notes
Notes Leasinvest.be Half-Year financial results| Leasinvest | 48
Slide 49: Notes
Notes Leasinvest.be Half-Year financial results| Leasinvest | 49
Slide 50: Notes
Notes Leasinvest.be Half-Year financial results| Leasinvest | 50
Slide 51: About Leasinvest
www.leasinvest.be About Leasinvest Regulated real estate company BE REIT Leasinvest Real Estate SCA invests in high quality and well- located retail buildings, offices and logistics buildings in the Grand Duchy of Luxembourg, in Belgium, in Switzerland and in Austria. At present the total fair value
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