Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — FY2013/2014 Earnings Presentation
18 slides from Eurocommercial Properties Nv's earnings presentation, August 2014
Slide 1: Year End 2013/2014 Results
Year End 2013/2014 Results
Slide 2: €2.7 Billion of Prime Retail Property in France, Italy and Sweden
€2.7 BILLION OF PRIME RETAIL PROPERTY IN FRANCE, ITALY AND SWEDEN France 39% Italy 39% Sweden 22% 2
Slide 3: Year End Results 2013/2014
YEAR END RESULTS 2013 / 2014 12 months to 30 June 2014 • Direct investment result: +1.7% to €82.9 million • Like for like rental growth: +1.5% • Retail sales turnover: +1.3% (6 months to June 2014: 1.5%) • Property valuations: +1.3% to €2.7 billion • Adjusted net asset value: +0.7% to €36.74 per dep
Slide 4: Rental Growth
RENTAL GROWTH 12 months to June 2014 Like for like Number of % of total leases Average rental rental growth relettings relet and renewed uplift on relettings and renewals and renewals Overall +1.5% 202 14% +8% France +1.6% 27 6% +30% Italy +0.8% 113 16% +6% Sweden +2.8% 62 22% +6% Vacancies and arre
Slide 5: Retail Sales Turnover
RETAIL SALES TURNOVER* To June 2014 4.5% 4.4% 4.0% 4.0% 3.5% 3.0% 2.5% 2.0% 1.8% 1.5% 1.7% 1.5% 1.3% 1.0% 0.5% 0.0% 0.0% -0.1% -0.5% Overall France Italy Sweden 12 months 6 months * Excluding hypermarkets and extensions. 5
Slide 6: Retail Sales Turnover by Sector
RETAIL SALES TURNOVER BY SECTOR* 12 months to June 2014 6.0% 5.6% 5.0% 4.0% 3.1% 3.0% 2.7% 2.0% 1.6% 1.3% 1.2% 1.0% 0.1% 0.0% -1.0% -0.8% -2.0% -3.0% -2.1% * Excluding extensions. 6
Slide 7: Occupancy Cost Ratios
OCCUPANCY COST RATIOS* June 2014 11.0% 9.7% 9.6% 9.9% 9.5% 9.0% 8.3% 8.1% 8.0% 7.6% 7.0% 5.0% 3.0% 1.0% -1.0% Overall France Italy Sweden Turnover incl. VAT Turnover excl. VAT * Rent plus marketing contributions, service charges and tenant property taxes as a proportion of turnover. Excluding hyperm
Slide 8: Valuations
VALUATIONS June 2014 Valuation changes Net initial yield * Twelve months to Six months to 30 June 2014 30 June 2014 At 30 June 2014 Overall 1.3% 1.2% 5.7% France 1.7% 1.7% 5.1% Italy 0.8% 0.6% 6.3% Sweden 1.4% 1.3% 5.6% * Net initial yield figures are derived by dividing expected net income for the
Slide 9: Extensions and Refurbishments
EXTENSIONS AND REFURBISHMENTS Estimated Expected net Property Project Timing cost yield on cost FRANCE Val Thoiry, Thoiry Refurbishment Underway €5 million Les Portes de Taverny, Taverny Refurbishment Underway €1 million Plaine de France, Moisselles Refurbishment 2015 €2.5 million Chasse Sud, Chasse
Slide 10: Funding Summary at 30 June 2014
FUNDING SUMMARY AT 30 JUNE 2014 Shareholders’ adjusted net equity €1.56 billion Total net borrowings €1.09 billion Average loan term c. 5 years Loan book hedged for interest exposure 82% Average term of hedges 7 years Average loan margin 91 bps Average overall interest rate 3.95% Net debt to adjuste
Slide 11: Borrowings Maturity Schedule
BORROWINGS MATURITY SCHEDULE €m 300 250 239 217 200 192 150 132 126 100 82 68 49 45 50 23 0 11
Slide 12: France Performance Overview
FRANCE PERFORMANCE OVERVIEW • Valuation of portfolio up 1.7% since December and June 2013 • Net initial yield: 5.1% (June and December 2013: 5.2%) Central Paris property yields averaged 4.5% while suburban centres were 5.4% and retail parks 6.0% • Like for like rental growth: 1.6% • Like for like
Slide 13: France Operational Overview
FRANCE OPERATIONAL OVERVIEW ● Refurbishment of Val Thoiry, Thoiry underway ● Blocks of land have been purchased for a total cost of €16 million alongside Les Atlantes, Tours and Val Thoiry, Thoiry to facilitate future possible extensions ● Extensions are planned for Chasse Sud, Chasse-sur-Rhône and
Slide 14: Italy Performance Overview
ITALY PERFORMANCE OVERVIEW • Valuation of portfolio up 0.8% since June 2013 and 0.6% since December 2013 • Net initial yield: 6.3% (unchanged since June and December 2013) • Like for like rental growth: 0.8% due to low indexation • Like for like turnover growth: -0.1% but flat for 6 months to June 2
Slide 15: Italy Operational Overview
ITALY OPERATIONAL OVERVIEW • External works due to start shortly at Cremona Po, Cremona to improve road access, increase surface car parking and build an open air children’s play area • Refurbishment of I Portali, Modena underway • Intention to submit planning application for major extension of Caro
Slide 16: Sweden Performance Overview
SWEDEN PERFORMANCE OVERVIEW • Valuation of portfolio up 1.4% since June 2013 and 1.3% since December 2013 • Net initial yield: 5.6% (June 2013: 5.8% and December 2013: 5.7%) • Like for like rental growth: 2.8% 62 lease renewals completed at average uplift of over 6% • Like for like turnover growth
Slide 17: Sweden Operational Overview
SWEDEN OPERATIONAL OVERVIEW • Eurostop is Halmstad’s only external shopping centre with a catchment of 200,000 people • Includes a 10,800m2 Coop hypermarket and 13,600m2 gallery with 34 retail tenants • Planning application for 16,000m2 GLA extension has received support of municipality and region;
Slide 18: Outlook
OUTLOOK ● Rental growth expected to remain modest due to minimal indexation ● Vacancies and arrears should remain low ● Maintain focus on upgrading and improving existing portfolio ● Consider possible acquisitions of quality shopping centres in France, Italy and Sweden 18
Eurocommercial Properties — FY2013/2014 Earnings Presentation on 6ix