Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — FY2021 Earnings Presentation
34 slides from Eurocommercial Properties Nv's earnings presentation, Mar 25, 2022
Slide 1: Full Year Results 2021
FULL YEAR RESULTS 2021 Friday 25 March 2022 1
Slide 2: Agenda
AGENDA Results review Evert Jan van Garderen, CEO Portfolio & ESG Peter Mills, CIO Financial review Roberto Fraticelli, CFO Closing remarks Evert Jan van Garderen, CEO 2
Slide 3: Results review
Results review Results Evert review Jan van Garderen, CEO FULL YEAR RESULTS 2021 3
Slide 4: A well diversified portfolio (as at 31 December 2021)
A well diversified portfolio (as at 31 December 2021) Geographical (by value) 5 Flagship centres* 20 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: Our centres since the beginning of the pandemic
Our centres since the beginning of the pandemic First Stores reopening Second Partial Third Pre-COVID Full reopening lockdown with restrictions lockdown reopening lockdown 120 35 Number of days shops were open monthly 30 100 25 As % of 2019 sales and footfall 80 20 60 15 40 10 20 5 0 0 ECP - Stores
Slide 6: Comparative H2 retail sales vs. 2019 and 2020
Comparative H2 retail sales vs. 2019 and 2020 45.0% 40.0% 39.1% 35.0% 30.0% 28.1% 25.0% 23.5% 20.0% 14.3% 15.0% 10.8% 10.0% 5.7% 5.0% 1.4% 0.6% 0.0% 0.0% -5.0% -5.8% -10.0% TOTAL Belgium France Italy Sweden H2 2021 vs H2 2019 H2 2021 vs H2 2020 6
Slide 7: Retail sector sales recovery in H2 2021 compared to pre-pandemic H2 2019
Retail sector sales recovery in H2 2021 compared to pre-pandemic H2 2019 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% Hypermarkets/ Fashion Shoes Health & Beauty Gifts & Sport Home Goods Telecom & Books & Toys F&B Services Supermarkets Jewellery Electrical H2 2021 vs H2 2019 7
Slide 8: Renewals and relettings – Continuation of positive long-term trend
Renewals and relettings – Continuation of positive long-term trend Uplift on renewals/relettings Strong leasing activity has been 25.0% maintained over the last 12 months with 264 leases renewed or relet producing an overall uplift in rent of 20.0% 5.1%. 15.0% These leases represent approximatel
Slide 9: Renewals and relettings
Renewals and relettings (12 months to 31 December 2021) Number of Average rental % of leases 264 leases renewed or re-let in the renewals and uplift on renewed and 12 months to December 2021 of relettings renewals and relet (MGR) which 100 were lettings to new relettings retailers achieving a 7.4%
Slide 10: Rental indexation
Rental indexation Average indexation Estimated indexation to be invoiced during 2022 • In Sweden already invoiced Overall 3.6% €7.0 million and collected in January Belgium 5.6%* €1.3 million* • In France and Italy to be France 2.8% €1.8 million invoiced in April Italy 3.8% €2.7 million • In Belgium
Slide 11: EPRA vacancies
EPRA vacancies EPRA vacancy for the portfolio at 31 December 2021 remained very low at 1.5% ranging from 1.0% to 2.5% in our markets. Long term EPRA vacancy rate EPRA Vacancy 1.8% 1.5% at 31 December 2021 1.5% Overall 1.5% 1.2% AVG LAST 10YRS 0.9% Belgium 1.0% 0.9% France 2.5% 0.6% Italy 1.3% 0.3% S
Slide 12: Rent collected in 2021
Rent collected in 2021 Rent concessions % of invoiced rent % of due and collectable granted (€ million) collected 2021 rent collected 2021 Belgium € 0.6 96% 99% France € 2.3 86% 88% Italy € 9.5 89% 98% Sweden € 0.7 98% 100% Total € 13.1 91% 96% 12
Slide 13: Milan's largest shopping centres
Milan’s largest shopping centres Eurocommercial owns two of the three largest shopping centres in the Milan area: Carosello in Carugate • 53,000m² inc. Carrefour • 116 stores inc. Apple, H&M, Inditex, Coin • Opposite IKEA and Leroy Merlin Fiordaliso in Rozzano • 85,000m² inc. Finiper and retail
Slide 14: Remerchandising of Fiordaliso
Remerchandising of Fiordaliso Car park Primark 202(2nd) - 3.019m2 Scarpe & Scarpe H&M 02+05(2nd) - 346m2 204(2nd) - 401m2 OVS 206(2nd) - 716m2 Storage Apple StorageApple - 150 m2 Various Storages - 513m2 Zara 50/51(2nd) - 370m2 Redevelopment opened November 2021 Primark 202 - 3.665m2 206 - 1.500m2 C
Slide 15: Fiordaliso tenants
Fiordaliso tenants Strengthening of partnership with existing brands… … while welcoming new brands Driving footfall growth in 2021 compared to pre-pandemic 2019 • Overall, +6% over 2019 • 70% of the footfall in 2021 in H2 • October and November increases due to the opening of the new mall • Subdued
Slide 16: Portfolio
Portfolio Peter Mills, CIO FULL YEAR RESULTS 2021 16
Slide 17: Valuations (at 31 December 2021)
Valuations (at 31 December 2021) Net value Valuation change EPRA yields 31 Dec 2021 From From NIY Topped-up € million 30 Jun 2021 31 Dec 2020 Belgium 579 -0.6% -2.2% 4.4% 4.6% France 890 -0.1% -1.8% 5.0% 5.0% Italy 1,608 1.4% 0.7% 5.4% 5.6% Sweden 894 1.4% 1.1% 5.0% 5.1% Overall 3,971 0.8% -0.3% 5.1
Slide 18: Valuation split
Valuation split 5 Flagships Net value (€M) 31 December 2021 EPRA net initial yield (%) EPRA topped up yield (%) Woluwe Shopping (Belgium) 1,785 Passage du Havre (France) I Gigli, Carosello, Fiordaliso (45% of the portfolio) 4.7 4.8 (Italy) 20 suburban hypermarket Net value (€M) 31 December 2021 EPRA
Slide 19: Transaction programme
Transaction programme Disposals Purchase FRANCE FRANCE FRANCE Les Trois Dauphins, Chasse Sud, Shopping Etrembières Grenoble, Chasse-sur-Rhône, completed in March completed in 2021 for €34.4 M December 2021 for €80 M FRANCE FRANCE Les Grands Passage du Havre, Hommes, Bordeaux Paris, 50% office & Purc
Slide 20: ESG
ESG Peter Peter Mills, CIO Mills, CIO 20
Slide 21: Environmental, Social and Governance
Environmental, Social and Governance THE THREE PILLARS 21
Slide 22: ESG case studies
ESG case studies Be green Be engaged Be responsible • Updated Green Lease • Eurocommercial Retail Academy® • Sustainable finance expanding • Supporting local communities • Full BREEAM certification • Improving customer and tenant • Supplier Code of Conduct updated satisfaction scores 22
Slide 23: Awards and recognitions
Awards and recognitions Global Real Estate Transparent ESG report Certified buildings Sustainability Benchmark • EPRA sBPR Gold Award for the • Full BREEAM certification of • 4 Star Rating eighth consecutive year for entire portfolio achieved 3 • 84/100 on aspects “policies”, compliance with Best Pr
Slide 24: Financial review
Financial review Roberto Fraticelli, CFO FULL YEAR RESULTS 2021 24
Slide 25: Financial summary at 31 December 2021
Financial summary at 31 December 2021 Proportionally consolidated Average overall interest rate Total net borrowings Average term of hedges Average term of loan book (incl. margin) €1.679 billion 5.8 years 3.9 years 2.0% Non-current borrowings maturity and amortisation schedule Lenders’ Share 6% 14
Slide 26: LTV at 40% - goal achieved
LTV at 40% - goal achieved 43.8% 42.6% 42.3% 45.7% 41.5% 41.2% 44.0% 44.0% 43.8% 40.5% 40.1% 43.3% 42.8% 42.6% 39.5% 42.3% 41.8% 41.5% 41.2% 38.3% 40.5% 40.1% 39.5% 38.3% 31/12/2020 31/12/2021 31/12/2021 pro-forma* 31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/12/2021 pro-forma* LTV proportional co
Slide 27: Direct Result recovering from COVID-19 pandemic
Direct Result recovering from COVID-19 pandemic Amounts are in € million and are reported according to proportional consolidation 27
Slide 28: EPRA Net Tangible Asset
EPRA Net Tangible Asset EPRA NTA Bridge 28
Slide 29: Closing remarks
Closing remarks Evert Jan van Garderen, CEO FULL YEAR RESULTS 2021 29
Slide 30: Dividend
Dividend • Cash dividend of €1.50 per share • Mandatory scrip dividend of 1 for each 75 existing shares • New dividend policy with interim and final dividend pay-out ratio • A cash pay-out ratio ranging between 65% and 85% of the direct investment result but with target at 75% • Interim dividend pay
Slide 31: Q&A Full Year Results 2021
ae Bh. Se EUROCOMMERCIAL 3)) FULL YEAR RESULTS 2021 31
Slide 32: Financial Calendar
FINANCIAL CALENDAR 13 April 2022: 2021 Financial statements 6 May 2022: First Quarter Results 2022 14 June 2022: Annual General Meeting 16 June 2022: Ex-dividend date 1 July 2022: Dividend payment date 32
Slide 33: 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 34: Head Office and Group Offices
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
Eurocommercial Properties — FY2021 Earnings Presentation on 6ix