Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — FY2019 Earnings Presentation
65 slides from Nextensa's earnings presentation, Feb 20, 2020
Slide 1: Investor Presentation Year results 2019
INVESTOR PRESENTATION Year results 2019
Slide 2: Table of Contents
Table of Contents 1. Activity overview 4 2. Portfolio overview 21 3. Highlights 2019 30 4. Financials & outlook 33 Appendices 41 2 Year results 2019 | Leasinvest.be
Slide 3: Disclaimer
This presentation has been Forward looking In addition, even if the prepared by the management statements Company’s results, condition, of Leasinvest Real Estate SCA, and growth and the a Belgian public real estate These forward-looking development of the industry in investment company statements ar
Slide 4: Activity overview
Activity overview 1. 4 Year results 2019 | Leasinvest.be
Slide 5: Investments
Investments Acquisition 2 retail parks near Shopping City Süd in Vösendorf close to Vienna, in Austria Agreement with Immo Lux-Airport SA for the Optional dividend acquisition of the & extra shares EEBC buildings B and E Retail Estates in the EBBC Business Park in Luxembourg 5 Year results 2019 | Le
Slide 6: EBBC B & E (LU)
Agreement Immo Lux Airport EBBC B & E (LU) 6 Year results 2019 | Leasinvest.be
Slide 7: EBBC Business park
EBBC Business park Investment price: buildings B & E (were already investment properties through 69.8% Rebranding stake in Lux Airport certificates: € 47.3 m. LRE is also redeveloping the site to build a stronger business community with advanced services to occupants (restauration, ~ 27,000 m² kinde
Slide 8: Nordring 2-10 & 16 (AT)
Nordring 2-10 Nordring 16 Acquisition Nordring 2-10 & 16 (AT) 8 Year results 2019 | Leasinvest.be
Slide 9: Retailpark Nordring, Vösendorf
Retailpark Nordring, Vösendorf Retail park close Nordring 16 to SCS Vösendorf 11,350 m² 235,000 m² - 330 shops 202 parking spaces footfall +/- 20 million/y Tenants: Lidl, Pittarello, Action, Bipa and Total investment: € 71.8 m Farben-Partner Fully leased Nordring 2-10 Annual rental income of circa €
Slide 10: Retail Estates (BE)
Retail Estates (BE) Retail Estates (FV € 113.4 m at 31/12/2019) € 11.4 m investment in optional dividend and 107,054 extra shares to keep >10% stake Real estate portfolio of € 1.7 bn (31/12/2019) 10.7% Focus = retail clusters & parks (83% of total portfolio) Leasinvest (LRE) LRE must hold minimum 10
Slide 11: Developments
Developments Knauf Hangar Pommerloch 26/27 (LU) (BE) Monteco Knauf (Montoyer Schmiede 14) (LU) (BE) 11 Year results 2019 | Leasinvest.be
Slide 12: CBD Brussels (BE)
Monteco (Montoyer 14) CBD Brussels (BE) 12 Year results 2019 | Leasinvest.be
Slide 13: Redevelopment Montoyer
Redevelopment Montoyer 14 • in the European Quarter • First higher wooden construction Office building of 3,655 m² • C02 neutral passive building to redevelop • New generation of ‘recyclable buildings • Objective: BREEAM Excellent Expected Rent Price • Building permit awaited to start new constructi
Slide 14: Antwerp (BE)
Hangar 26/27 Antwerp (BE) 14 Year results 2019 | Leasinvest.be
Slide 15: Hangar 26/27 Antwerp (BE)
Hangar 26/27 Antwerp (BE) • Danish architects CF Moller have been appointed to design a high-end mixed projects € 23 m with extension of offices Investment Price: and retail • Building permit request 9,171 m² will be introduced in Retail and offices April/May 2020 • Construction works foreseen to st
Slide 16: Redevelopment Knauf shopping center Schmiede (LU)
Schmiede (LU) Redevelopment Knauf shopping center 16 Year results 2019 | Leasinvest.be
Slide 17: Knauf shopping center Schmiede (LU)
Knauf shopping center Schmiede (LU) • Strengthening position as largest shopping center in € 30 m the North of Luxembourg Foreseen Capex • Opening C&A Family store mid 2021 of 976 m2 Reception • Phased renovation: first phases ongoing • Extension H&M & Delhaize: mid 2021 Extension of ~ 8,000 m² 17 Y
Slide 18: Redevelopment Knauf shopping center Pommerloch (LU)
Pommerloch (LU) Redevelopment Knauf shopping center 18 Year results 2019 | Leasinvest.be
Slide 19: Knauf shopping center Pommerloch (LU)
Knauf shopping center Pommerloch (LU) • Opening new parking April 2020 • Additional commercial & Extension office space (both 850 m2): of parking & reception April 2020 additional commercial space • Extension of Leonidas Chaqwa coffee formula 19 Year results 2019 | Leasinvest.be
Slide 20: Leases
Leases Mercator: EBBC: Negotiations with potential 2,000 m² of new rental tenant who would like to contracts for spaces not lease the space that CSSF affected by rebranding left end of August ongoing Knauf Schmiede: opening C&A family store of 976 m² Knauf Pommerloch: important number of renewals Tr
Slide 21: Portfolio overview
Portfolio overview 2. Knauf Shopping Center Schmiede (LU) 21 Year results 2019 | Leasinvest.be
Slide 22: Portfolio overview
Portfolio overview Portfolio split – Fair value 31/12/2019 AT 16% LU 53% € 1.11 Bn 01. Focused on two Portfolio split – Net income segments in three countries BE 31/12/2019 31% AT 11% Logistics 6% Offices 46% € 65 m BE LU € 1.11 Bn 35% 54% Retail 48% Logistics 6% Retail 52% Excluding stake in Retail
Slide 23: Portfolio overview
Portfolio overview BE 02. A unique combination of market segments and FV | € 343.5 m geographical diversification Yield | 6.06% FV | € 1.11 bn | Yield | 5.84% LU Offices 253,7 FV | € 587.0 m Yield | 5.87% Retail Logistics Retail 50,4 39,5 300,4 Offices 264,4 AT FV | € 179.7 m Yield | 5.32% Retail Lo
Slide 24: Portfolio overview
Portfolio overview 03. Demonstrating long term growth through a focused approach Evolution of portfolio fair value per country Evolution of split in market segments Including stake in Retail Estates Focus on two asset classes • i.e. retail and offices Focus on three countries • sale of largest part
Slide 25: Portfolio overview
Portfolio overview Duration leases till first break per 31 December 2019 04. On the back of consistent (in y) occupancy rates Occupancy rates Luxembourg Belgium Austria Total 2019 Total 2018 per 31 December 2019 3.4 5.0 5.6 4.3 4.3 Luxembourg Belgium Austria Total 2019 Total 2018 9,9 8,9 7,8 86.50%
Slide 26: Leasinvest's markets: Office Market (2019)
Leasinvest’s markets Office Market (2019) Belgium Take-up Brussels (+33% YoY) highest level since 2006 Vacancy rate: 7.4% (CBD 3.1%) Prime rent CBD: € 315/m2/y (Treesquare at € 330/m2/y) Investments: +14% YoY Luxembourg Prime yield: 4.15% (LT 3.5%) Vacancy rate ~ 3.2% Take-up: 265,000 m2 (record yea
Slide 27: Leasinvest's markets: Retail Market (2019)
Leasinvest’s markets Retail Market (2019) Austria Increasing online sales lead to a stagnation of retail spaces Retail sales and retail space per capita among highest in Europe Turnover and sales expected to be supported by population and income growth over next 5years Luxembourg Rental market: high
Slide 28: Leasinvest's markets: Luxembourg
Leasinvest’s markets • Luxembourg is a key intermediary of global capital flow with more than € 4.16 tn of assets under management Luxembourg • Luxembourg has been an employment magnet for neighboring countries and beyond • Economic performance has remained strong in 2019, with a GDP growth of 2.6%
Slide 29: Leasinvest's markets: Austria
Vienna confirmed as Leasinvest’s markets best place to live worldwide • While demand for retail properties remains high, supply is limited, weighting on yields Austria‘s economy is Austria • The production of new space for retail powering parks and shopping centres has basically ahead come to a stan
Slide 30: Highlights 2019
Treesquare (BE) 3. Highlights 2019 30 Year results 2019 | Leasinvest.be
Slide 31: Highlights 2019
Highlights EPRA earnings 2019 rise by 29.5% to ~ € 40.5 m from ~ € 31.3 m (2018) Debt ratio at 54.78% Dividend 2019 +3% € 5.25/share Funding cost drops to 2.14% from 2.59% (2018) Real estate portfolio of € 1.224 bn including Retail Estates Net result € 49.9 m Weighted average (€ 8.42/share) vs € 38.
Slide 32: Dividend evolution
Dividend Long term EPS & Gross DPS evolution 7,5 7,0 6,5 evolution 6,0 5,5 5,0 4,5 4,0 Dividend 3,5 3,0 Gross dividend 2019 increased +3% to € 5.25 over 2019 2000 2004 2001 2002 2003 2005 2006 2008 2009 2007 2011 2014 2017 2010 2012 2013 2015 2016 2018 2019 EPS (€) Gross dividend/share (€) (2018: €
Slide 33: Financials & outlook
4. Financials & outlook 33 Year results 2019 | Leasinvest.be
Slide 34: Key consolidated financials 2019
Key Key figures balance sheet 31/12/2019 31/12/2018 consolidated Net asset value group share (€ 1,000) 492 577 475 811 Number of issued shares before capital increase 4 938 870 financials Average number of shares after capital increase on 04/10/2018 5 926 644 5 179 724 Number of shares at closing da
Slide 35: EPRA KPIs
EPRA KPIs EPRA performance measures 31/12/2019 31/12/2018 2019 EPRA Earnings (in € per share) (1) 6.83 6.03 EPRA NAV (in € per share) (2) 93.4 88.69 EPRA NNNAV (in € per share) (3) 85.0 82.27 EPRA Net Initial Yield (in %) (4) 4.68% 5.25% EPRA Topped up Net Initial Yield (in %) (5) 4.66% 5.23% EPRA V
Slide 36: Consolidated income statement
Consolidated statement realized and unrealized results (€ 1000) 31/12/2019 31/12/2018 (+) Rental income 65 280 56 209 Consolidated (+) Write-back of lease payments sold and discounted 0 0 (+/-) Related-rental expenses -530 -212 income NET RENTAL INCOME 64 750 55 997 (+) Recovery of property charges
Slide 37: Consolidated balance sheet
Consolidated (€ 1,000) 31/12/2019 31/12/2018 (€ 1,000) 31/12/2019 31/12/2018 balance sheet ASSETS LIABILITIES I. NON-CURRENT ASSETS 1 226 032 1 116 270 TOTAL SHAREHOLDERS’ EQUITY 492 577 475 811 1 092 529 1 004 I. SHAREHOLDERS’ EQUITY Investment properties ATTRIBUTABLE TO THE SHAREHOLDERS 492 577 47
Slide 38: Funding
Funding Funding diversification Rental yield vs 30% 40% funding cost • Cost of debt: decrease from 2.59% (2018) to 2.14% (2019) • Total committed lines (incl. bonds) of € 744 m 8% 7% • Duration credit facilities increased from 3.11y (2018) to 3.88y (2019) 6% 5% • Available headroom credit facilities
Slide 39: Hedging
Hedging • Debt financing – 71% fixed ratio • Hedge ratio (31/12/2019) – 82% • Fixed rate debt, incl. bonds (30%), Hedge ratio interest CAPs (11%) and interest rate swaps (41%) • Duration hedges: 5.54y vs 5.35y (2018) 120% • Restructuring and purchase of new derivatives led to benefiting from low int
Slide 40: Outlook FY 2020
Outlook FY 2020 Treesquare (BE) Subject to extraordinary circumstances and taking into account a constant portfolio, LRE expects a comparable level of rental income in comparison with 2019, while the funding costs, at a constant credit withdrawal in 2020, are expected to be slightly higher than in 2
Slide 41: Appendices
Knauf Shopping Center Schmiede (LU) 5. Appendices 41 Year results 2019 | Leasinvest.be
Slide 42: Share price performance
Strassen (LU) 6. Share price performance 42 Year results 2019 | Leasinvest.be
Slide 43: Share performance: Share price LRE vs NAV
Share performance Share price LRE vs NAV 43 Year results 2019 | Leasinvest.be
Slide 44: Share performance vs EPRA and BEL MID
Share performance Vs EPRA Vs BEL MID 44 Year results 2019 | Leasinvest.be
Slide 45: Share performance: Performance report January 2020
Share performance Performance report January 2020 45 Year results 2019 | Leasinvest.be
Slide 46: Investor relations team
Investor relations team Michel Van Geyte Chief Executive Officer Michel Van Geyte (54) joined Leasinvest Real Estate in August 2004. He is CEO and executive director of Leasinvest Real Estate and Leasinvest Immo Lux. michel.vangeyte@leasinvest.be Tim Rens Chief Financial Officer Tim Rens (38) joined
Slide 47: Key investment highlights
Key investment highlights 7. 47 Year results 2019 | Leasinvest.be
Slide 48: Key investment highlights
Key investment highlights 4. 2. Proven expertise Diversified quality portfolio in (re)development on the back of dynamic of buildings asset management 1. Unique exposure to 3. the growing Luxembourg office Proactive commercial 5. and retail market approach translating into a high quality Strong divi
Slide 49: Company profile & strategic vision
8. Company profile & strategic vision 49 Year results 2019 | Leasinvest.be
Slide 50: Company profile
Key figures 31/12/2019 Company profile 90.46% 5.84% Occupancy Rental yield AT € 1.11 bn Fair value portfolio 16% € 1.22 bn (incl. participation in Retail Estates) LU ~ € 711 m Market capitalization 13/02/2020 53% Fair Value Shareholders 4.28y 2.14% € 1.11 Bn • Ackermans & van Haaren 30.01% • AXA Bel
Slide 51: Strategic vision: Investment strategy
Strategic vision Investment strategy Opportunity driven 2015 Tour & Taxis Royal Depot (BE) € 108 m landmark office building in Brussels 2012-2013 2008 Knauf shopping (LU) 2006 Metro Group retail (LU) Schmiede & Pommerloch € 170 m 100 shops Dexia Immo Lux (LU) portfolio € 50 m 3 buildings portfolio €
Slide 52: Strategic vision: Investment strategy
Strategic vision Investment strategy Opportunity driven 2018-2019 2018-2019 EBBC (LU) Vösendorf (AT) 2017 Owning 5 out of 6 buildings 2 retail parks near in BP in Lux airport district SCS Nordring, largest Mercator (LU) - 2018: € 64 m + shopping complex close 2019: € 47 m to Vienna € 72 m 2017: furt
Slide 53: Strategic vision: Development strategy
Strategic vision Development strategy Organic (re)developments Boomerang Strassen (LU) 2017-2020: redevelopment Strassen Montoyer Brussels CBD (BE) Reconstruction by 2018 2016: 21y usufruct with EP 53 Year results 2019 | Leasinvest.be
Slide 54: Strategic vision: Development strategy
Strategic vision Development strategy Organic (re)developments Royal 20 CBD (LU) Reconstruction by 2015 Let to China Merchant’s bank Sold with capital gain of > € 20 m on investment Treesquare (BE) Reconstruction in 2018 Building of ~ 6,500 m² Let to high end occupants 54 Year results 2019 | Leasinv
Slide 55: Strategic vision: Commercial strategy
Strategic vision Commercial strategy Maximizing lease duration & occupancy rates 3. Knauf Pommerloch 1. Tour & Taxis 2. De Mot Year results 2019 | Leasinvest.be 55
Slide 56: Structure & Corporate governance
Structure & Corporate governance 9. 56 Year results 2019 | Leasinvest.be
Slide 57: Corporate Structure
Corporate Structure Ackermans & van Haaren AXA Belgium 30% 27% 100% Leasinvest Real Estate SCA/Comm. VA Leasinvest Real Estate Management SA/NV On = BE REIT/SIR/GVV = buildings in Belgium = asset management for LRE & LIL 31/12/2019 Belgium Grand-duchy of Luxembourg Austria Leasinvest Services SA/NV
Slide 58: Directors nominated by AvH
Directors nominated by AvH Board of Directors & Management as per 20/05/2019 Piet Dejonghe Director member Executive Committee Ackermans & van Haaren Jan Suykens Chairman CEO & chairman Michel Jean-Louis Executive Committee Appelmans Ackermans & van Haaren Van Geyte Executive director Director non-e
Slide 59: Independent directors
Independent directors Board of Directors & Management as per 20/05/2019 Dirk Adriaenssen Eric Van Dyck Independent Independent director director Cushman & Wakefield Marcia Managing director Redevco London – Chairman Capital Switzerland Asset De Wachter Markets EMEA/ ex-CIO Management Services AG Red
Slide 60: Executive committee
Executive committee (as of 1 December 2018) Board of Directors & Management as per 20/05/2019 Michel Van Geyte Chief Executive Officer 25 years of real estate experience of which 3 years as managing partner at Knight Frank Belgium and of which 13 years as COO/CIO with LRE Tim Rens Chief Financial Of
Slide 61: Corporate governance
Corporate governance Extraordinary general meeting of BoD AC BRC 16 December 2019: Jan Suykens Chairman, non-executive director X (chairman) - Change of purpose of the company following modified law Michel Van Geyte Managing director of 12 May 2014 on RREC Piet Dejonghe non-executive director X - Re
Slide 62: Main assets
Strassen (LU) 10. Main assets 62 Year results 2019 | Leasinvest.be
Slide 63: Main assets in Luxembourg
OFFICE Main assets Montimmo Avenue Monterey, in Luxembourg CBD Acquisition: 2008 RETAIL Batiself & Siemes Diekirch Acquisition: 2008 OFFICES & WAREHOUSE CFM 3,600 m² Offices en RETAIL RETAIL 10,000 m² Warehouse RETAIL Strassen Shopping center Shopping center 2 phase renovation Knauf Pommerloch Knauf
Slide 64: Main assets in Belgium
Main assets in Belgium OFFICE The Crescent Anderlecht Lenniksebaan 451, Anderlecht OFFICE / RETAIL Acquisition: 2004 Brixton Business Park Brixtonlaan 1-30, Zaventem Acquisition: 1999 OFFICE / RETAIL Tour & Taxis Avenue du Port 86C, Brussels Acquisition: 2015 OFFICE / RETAIL Hangar 26/27 Rijnkaai, A
Slide 65: Main assets in Austria
Main assets in Austria RETAIL Nordring 2-10 & 16 Vösendorf – South of Vienna Acquisition: 2019 RETAIL Hornbach Baumarkt (Stadlau 22nd district Vienna) RETAIL Acquisition: 2017 Gewerbepark Stadlau (Stadlau 22 district Vienna) nd Acquisition: 2017 RETAIL Frun Park Asten Linz - 200 KM from Vienna Acqui
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