Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — FY2022 Earnings Presentation
43 slides from Eurocommercial Properties Nv's earnings presentation, Mar 24, 2023
Slide 1: 2022 Full year results
2022 Full year results 24 March 2023
Slide 2: Agenda
AGENDA 1 Introductions Luca Lucaroni, Investor Relations Director 2 Results review Evert Jan van Garderen, CEO 3 Portfolio & ESG 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: A well diversified portfolio (as at December 2022)
A well diversified portfolio (as at 31 December 2022) Geographical (by value) 5 Flagship centres* 19 suburban hypermarket anchored shopping centres* I Gigli/Carosello/Fiordaliso/Woluwe Shopping/ Passage du Havre Fashion & Shoes = 36% Essential and Everyday Retail = 41% Fashion & Shoes = 24% Essentia
Slide 5: The geographical portfolio
The geographical portfolio (% of value) Italy Sweden France Belgium 43% 21% 21% 15% 1 I Gigli, Florence 1 Hallarna, Halmstad 1 Passage du Havre, Paris 1 Woluwe Shopping, Brussels 2 Carosello, Carugate, Milan 2 Bergvik, Karlstad 2 Val Thoiry, Greater Geneva 3 Fiordaliso, Rozzano, Milan 3 C4, Kristian
Slide 6: Solid operational performance in 2022
Solid operational performance in 2022 Retail sales Rental growth Renewals and relettings +15.9% vs 2021 4.7% 5.4% Rental uplift on renewals and +5.0% vs 2019 (compared to 2.9% in the 12 months to June 2022) relettings 255 lease transactions Vacancy OCR Rent collection 1.5% 9.2% 98% (same level as at
Slide 7: Retail sales comparison FY 2022 vs FY 2021 and FY 2019
Retail sales comparison FY 2022 vs FY 2021 and FY 2019 Like-for-like retail sales by country 25.0% 22.5% 21.0% 20.0% 15.9% 14.9% 15.0% 10.0% 9.3% 6.1% 5.0% 4.6% 5.0% 1.9% 0.9% 0.0% TOTAL Belgium France Italy Sweden FY 2022 vs FY 2021 FY 2022 vs FY 2019 7
Slide 8: Retail sector sales comparison FY 2022 vs FY 2021 and FY 2019
Retail sector sales comparison FY 2022 vs FY 2021 and FY 2019 160.0% 138.3% 140.0% 126.8% 120.7% 119.2% 121.9% 120.0% 117.1% 115.8% 116.0% 115.3% 109.4% 109.4% 109.5% 111.4% 108.2% 106.0% 104.1% 105.6% 96.1% 101.2% 98.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Fashion & Shoes Health & Beauty Gifts & Jew
Slide 9: Rental growth
Rental growth (12 months to December 2022) Like-for-like rental growth Overall 4.7% Belgium 5.0% France 2.6% Italy 6.5% Sweden 3.0% Like-for-like rental growth is calculated based on 12-month data and excludes the impact of acquisitions, disposals and development projects to provide an accurate figu
Slide 10: Indexation
Indexation Index applicable in 2023 Belgium(1) 3.0% France(2) 4.2% Italy 11.3% Sweden 10.9% TOTAL 8.7% (1) Estimate based on the forecast of the adjusted CPI index in 2023 (2) Weighted average of the applicable indices • For Belgium, the CPI index is applied for each contract for the month prior of
Slide 11: Renewals and relettings
Renewals and relettings (12 months to 31 December 2022) Number of Average rental % of leases renewals and uplift on renewed and relettings renewals and relet (MGR) ➢ Positive growth on renewals and relettings relettings still being achieved ➢ 255 lease transactions achieving a rental uplift of 5.4%
Slide 12: EPRA vacancies
EPRA vacancies EPRA vacancy rate for the portfolio remained low at 1.5% in December 2022, ranging between 0.6% and 2.9%. Long term EPRA vacancy rate EPRA EPRA vacancy at 30 vacancy at 31 Jun 2022 Dec 2022 1.8% 1.6% 1.6% 1.6% Overall 1.5% 1.5% 1.5% 1.5% 1.4% 1.5% 1.5% A 1.4% 1.3% AVERAGE 1% 1.0% Belg
Slide 13: Occupancy cost ratio (OCR)
Occupancy cost ratio (OCR) (as per 31 December 2022) Occupancy cost ratio Overall 9.2% Belgium 15.5% France 10.3% Italy 9.0% Sweden 7.3% The total occupancy cost ratio is defined as rent plus marketing contributions, service charges and tenant property taxes as a proportion of turnover including VAT
Slide 14: Rent collection in 2022
Rent collection in 2022 % of % of invoiced rent invoiced rent collected collected 2021 2022 Belgium 97% 100% France 91% 95% Italy 91% 98% Sweden 98% 100% Total 93% 98% 14
Slide 15: Leasing highlight – F&B sector
Leasing highlight – F&B sector The F&B sector has now fully recovered and is expanding with a range of new brands, concepts and formats. Traditionally the sector is different in Italy and France where food is perhaps more of a cultural and social experience integrating particularly well with late sh
Slide 16: Leasing highlight - Lifestyle
Leasing highlight - Lifestyle The pandemic was a catalyst for the rapid growth in lifestyle fashion and strong sales in sporting goods and equipment during lockdowns. ➢ I Gigli’s lifestyle destination, anchored by Adidas, Nike Store and JD Sports. LIFESTYLE ➢ North mall extension in Fiordaliso with
Slide 17: Leasing highlight – Value retail sector
Leasing highlight – Value retail sector With household budgets under pressure from rising inflation and increasing energy costs, one developing retail trend has been the expansion of the low price/value retail sector. ➢ Increasing market share across all our markets ➢ An important part of the tenant
Slide 18: Leasing
Leasing OTHER BRANDS ESTABLISHING IN OUR CENTRES 18
Slide 19: Portfolio and ESG
Portfolio and ESG Peter Mills, CIO
Slide 20: Valuations (at December 2022)
Valuations (at 31 December 2022) Net value Valuation change EPRA yields 31 Dec 2022 From NIY Topped-up € million 31 Dec 2021 Belgium 578 -0.4% 4.6% 4.9% France 810 -0.5% 5.3% 5.4% Italy 1,630 0.6% 6.0% 6.1% Sweden 815 -1.7% 5.6% 5.8% Overall 3,833 -0.3% 5.5% 5.7% 20
Slide 21: Valuation split
Valuation split 5 Flagships Net value (€M) 31 December 2022 EPRA net initial yield (%) EPRA topped up yield (%) Woluwe Shopping (Belgium) 1,729 Passage du Havre (France) I Gigli, Carosello, Fiordaliso (45% of the portfolio) 5.2 5.4 (Italy) 19 suburban hypermarket Net value (€M) 31 December 2022 EPRA
Slide 22: €200 million disposal programme completed
€200 million disposal programme completed Disposals FRANCE FRANCE Les Grands Hommes, Bordeaux sold in Passage du Havre, Paris, 50% office & March 2022 for €22.5 M residential sold in March 2022 for €57 M 22
Slide 23: Project: Valbo, Gävle
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 autumn 2023 23
Slide 24: Future project: Woluwe Shopping, Brussels
Future project Woluwe Shopping, Brussels ❑ Revised planning application June 2022 ❑ Planning decision by June 2023 ❑ 7,800m² retail and 70 apartments 24
Slide 25: Environmental, social and governance
Environmental, social and governance ESG Strategy framework ESG Governance Supervisory Board ESG committee Includes CEO, CFO, CIO and Group Director Legal ESG working group Chaired by Group Director Legal Committee members External support Country representatives from Strategic advisory firm, proper
Slide 26: Be green
Be green Objectives and targets Key facts Objective Status Key facts Operate carbon neutral On target 15% carbon emissions • 100% BREEAM in Use certifications in place in the by 2030 reduced (market bases vs. portfolio (March 2023) 2021) • Climate change risks and opportunities assessment Zero waste
Slide 27: Be engaged
Be engaged Objectives and targets Objective Status Key facts Key facts 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 • Shopping centres increasingly form an integral Improve the average retailer On ta
Slide 28: Be responsible
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 Cod of Conduct annually Finance Instruments - Second party opinion issued by ISS Corporate Solutions Create an attra
Slide 29: Financial review
Financial review Roberto Fraticelli, CFO
Slide 30: Financial Performance 2022
Financial Performance 2022 (at 31 December 2022) Income statement Financial position Per share (€ million) FY 2022 FY 2021 (€ million) FY 2022 FY 2021 FY 2022 FY 2021 Net asset value €38.68 €37.54 Rental income €199.3 €198.3 Property investments €3,643 €3,757 Adjusted net asset value €39.62 €40.63 N
Slide 31: Financial summary at December 2022
Financial summary at 31 December 2022 Proportionally consolidated Average term of hedges Average overall interest rate Total net borrowings (incl. margin) €1.548 billion 5.3 years 2.4% Long term borrowings maturity and amortisation schedule (January 2024 – December 2032) Lenders’ Share 0 100 200 300
Slide 32: Interest rate hedging
Interest rate hedging The development of the Company’s interest rate hedging ratio. 90.00% 88.00% 86.00% 85.68% 84.00% 84.05% 82.00% 82.49% 80.00% 78.00% 75.80% 76.00% 73.78% 74.00% 72.00% 70.00% 31/12/2020 30/06/2021 31/12/2021 30/06/2022 31/12/2022 32
Slide 33: Loan to Value ratio 40.4%
Loan to Value ratio 40.4% 45.7% 43.8% 44.0% 44.0% 43.8% 42.6% 42.3% 42.8% 41.5% 43.3% 42.6% 41.2% 42.3% 41.8% 40.4% 41.5% 40.1% 41.2% 39.4% 40.4% 40.1% 39.4% 37.9% 37.9% 31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/12/2022 31/12/2020 31/12/2021 31/12/2022 LTV proportional consolidated balance shee
Slide 34: ICR and net debt/EBITDA ratio
ICR and net debt/EBITDA ratio 12.0 11.1 4.2 4.1 10.3 10.0 8.9 4 8.0 3.8 3.7 6.0 3.6 3.5 4.0 3.4 2.0 3.2 - 3 31/12/2020 31/12/2021 31/12/2022 ICR Net debt /EBITDA ratio 34
Slide 35: Direct Investment Result (DIR) comparison of 2022 with 2021
Direct Investment Result (DIR) comparison of 2022 with 2021 Amounts are in € million and are reported according to proportional consolidation 35
Slide 36: EPRA Net Tangible Asset
EPRA Net Tangible Asset EPRA NTA Bridge 36
Slide 37: Closing remarks
Closing remarks Evert Jan van Garderen, CEO
Slide 38: Acquisition of minority interest in Woluwe Shopping
Acquisition of minority interest in Woluwe Shopping • Put option recently exercised by minority shareholder AG Insurance for its 25.6% stake in Woluwe Shopping • Exercise price €69.6 million equal to net asset value • Closing in April 2023 • Funding by available cash and credit lines • After acquisi
Slide 39: Dividend and 2023 direct investment result guidance
Dividend and 2023 direct investment result guidance • A cash dividend pay-out ratio ranging between 65% and 85% of the direct investment result but with target at 75% • Interim cash dividend of €0.60 per share (40% of total cash dividend of previous year) paid on 27 January 2023 and final cash divid
Slide 40: Financial Calendar
Financial Calendar 19 April 2023 – Annual Results report publication 5 May 2023 – Q1 2022 Results 13 June 2023 – Annual General Meeting 15 June 2023 – Ex-dividend date 7 July 2023 - Final dividend distribution date
Slide 41: Q&A
Q&A
Slide 42: Disclaimer/forward-looking statements
Disclaimer/forward-looking statements For a more comprehensive discussion of the risk factors affecting our business, please see our latest annual report. 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 subscr
Slide 43: Head Office
Head Office Group Offices Eurocommercial Properties N.V. Belgium France Italy Sweden Herengracht 469 Rue St Lambert 200 107 rue Saint Lazare Via della Moscova, 3 Kungsgatan 48 1017 BS Amsterdam 1200 Bruxelles 75009 Paris 20121 Milano 111 35 Stockholm www.eurocommercial.com
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