Wereldhave Belgium SCA · EURONEXT:WEHB
Wereldhave Belgium SCA — Wereldhave Belgium — Investor Presentation (2019)
61 slides from Wereldhave Belgium SCA's investor presentation, 2019
Slide 1: Corporate Presentation 2019
CORPORATE PRESENTATION 2019
Slide 2: Content
Content Wereldhave Belgium at a glance 01 The retail market in Belgium 02 Corporate strategy 03 Financial results 2018/H1 2019 04 Portfolio overview 05 Development overview 06 Forecast & dividend policy 07 Financial structure 08 Share price evolution 09 Objectives 2019-2020 10 Q&A 11 2
Slide 3: Speakers
Speakers Kasper Deforche Chief Executive Officer Cédric Biquet Chief Financial Officer Nicolas Beaussillon Commercial Director 3
Slide 4: Wereldhave Belgium at a glance
Wereldhave Belgium at a glance 01 4
Slide 5: General
01. Wereldhave Belgium at a glance General • Company founded in 1972 and listed on Euronext Brussels since 1998 • Focused on investment in Retail Real Estate (Shopping Centres and Retail Parks) in Belgium and Luxembourg • Holds a total real estate portfolio of 956.7 Mio € as of 31 December 2018 • St
Slide 6: Belgian REIT (GVV / SIR status)
01. Wereldhave Belgium at a glance Belgian REIT (GVV / SIR status) • Company specialized in Real Estate investment • Favourable tax status • Main conditions: - Portfolio diversification: < 20% per single asset/tenant - Loan-to-Value: < 65% - Distribution: > 80% of net proceeds 6
Slide 7: Shareholding
01. Wereldhave Belgium at a glance Shareholding 33.5% 66.5% Market capitalisation Free Float ±620 Mio € Wereldhave Group (NL) 7
Slide 8: Key Figures - Balance Sheet
01. Wereldhave Belgium at a glance Key Figures Balance Sheet Key Figures 31/12/2017 31/12/2018 30/06/2019 Total Real Estate Portfolio (in Mio €) 853.6 956.7 971.0 Total EPRA Occupancy Ratio 94.30% 96.20% 95.70% • Increasing portfolio value Total Net Asset Value (in Mio €) 619.3 678.4 681.5 • Increas
Slide 9: Key Figures - Profit and Loss Account
01. Wereldhave Belgium at a glance Key Figures Profit and Loss Account Key Figures 31/12/2017 30/06/2018 31/12/2018 30/06/2019 Gross Rental Income (in Mio €) 49.99 25.70 52.60 29.96 Direct Result (in Mio €) 39.40 19.76 40.73 23.44 • Increasing rental income Indirect Result (in Mio €) 15.28 3.90 -0.1
Slide 10: The retail market in Belgium
The retail market in Belgium 02 10
Slide 11: General Trends
02. The retail market in Belgium General Trends Structural change due to growth of online retail Increasing overlap between physical and online retail Population growth and tourism are major drivers Growing importance of technology & data Continued growth in lifestyle, wellbeing and food & beverage
Slide 12: General occupier market
02. The retail market in Belgium General occupier market Take-up retail Belgium, number of deals Leasing and owner-occupation activity 283 261 1 130 228 261 207 196 261 207 152 174 500 261 413 424 489 457 2014 2015 2016 2017 2018 Main street Out of town retail Shopping centre Source: Cushman & Wakef
Slide 13: Prime rents per segment
02. The retail market in Belgium General occupier market Prime rents per segments Prime rent evolution 2008-Q3 2018 Retailers still focus on AAA locations. Adaptability is key and rents are slightly under pressure in the high street and shopping centres. RETAIL WAREHOUSE (RHS) - 185 €/m2 HIGH STREET
Slide 14: Retail investment market
02. The retail market in Belgium Retail investment market Prime yields by segment 7,0% 6,5% 6,0% 5,5% 5,0% 4,5% 4,0% 3,5% 3,0% 2,5% 2,0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 High street Shopping Centre Out of town Source: Cushman & Wakefield 14
Slide 15: Corporate strategy
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Slide 16: Corporate strategy
03. Corporate strategy Wereldhave Belgium is a specialised Shopping Centres and Retail Parks investor and operator. The company strongly believes in the added value of owning and managing its own assets.Therefore the structure of the company is organised between the head office hosting the central s
Slide 17: Structure of the company
03. Corporate strategy Structure of the company CEO Legal HR Operations/Facilities Commercial Finance Development Ring Shopping Shopping Bastions Retail Parks, Shopping 1 Genk Shopping Nivelles Belle-Île Liège Kortrijk Tournai Offices & other 17
Slide 18: Wereldhave Belgium Team
03. Corporate strategy Wereldhave Belgium Team 18
Slide 19: Scope of investment
03. Corporate strategy Scope of investment Wereldhave Belgium historically invests in Shopping Centres and offices in Belgium. In recent years, the growth of the company mainly originated from the acquisition of retail properties, as well as the extension of existing retail assets. At the same time,
Slide 20: Future portfolio opportunities
03. Corporate strategy Future portfolio opportunities Multifunctionality: F&B, leisure, co-working, residential, etc. Vertical development Optimise land value 20
Slide 21: Operational excellence
03. Corporate strategy Operational excellence Optimise customer journey The Point Specialty leasing 21
Slide 22: Corporate social responsibility
03. Corporate strategy Corporate social responsibility To integrate sustainability into the company strategy, Wereldhave Belgium has developed a pillar structure with 4 focus areas: Bricks People Partners Community 22
Slide 23: Financial results
Financial results WERELDHAVE BELGIUM
Slide 24: Main portfolio events 2018
04. Financial results Main portfolio events 2018 • Delivery on 12 April 2018 of the extension project of the Shopping Bastions (additional 15.000m2) • Strong letting activity Occupancy ratio increase from 94.3% on 31 December 2017 to 96.2% on 31 December 2018 • Acquisition on 21 December 2018 of two
Slide 25: Main portfolio events 2019
04. Financial results Main portfolio events 2019 • Strong letting activity Surface vacated following the partial departure of Carrefour in Belle-île almost fully relet to strong tenants (Decathlon, Action, Medi-Market, ..). Occupancy ratio from 96,2% to 95,7% in H1 2019. • Delivery of the project ‘7
Slide 26: Main equity events 2018
04. Financial results Main equity events 2018 • Optional dividend distributed on 8 May 2018 Capital increase of 20.4 Mio € • Contribution in kind of the retail park in Turnhout on 21 December 2018 Capital increase of 33.1 Mio € 26
Slide 27: Main equity events 2019
04. Financial results Main equity events 2019 • Optional dividend distributed on 15 May 2019 Capital increase of 21,4 Mio € 27
Slide 28: Main financing events 2018
04. Financial results Main financing events 2018 • Refinancing of two maturing credit lines (RCF) for a total outstanding amount of 80 Mio € over 4 and 5 years at more favourable pricing conditions • Setting up of a Treasury Notes program for a total available amount of 100 Mio € 28
Slide 29: Main financing events 2019
04. Financial results Main financing events 2019 • Extension of the intercompany credit line (Wereldhave NL) for an amount of 150 Mio € over 5 years. • Full utilization of the Treasury Notes program, optimalizing the average cost of financing (<1%) • Acquisition of IRS instruments (50 Mio €) in orde
Slide 30: Consolidated balance sheet (in Mio €)
04. Financial results Consolidated balance sheet (in Mio €) Assets Liabilities 980 995 980 995 884 884 16 26 840 24 840 794 23 794 30 15 12 29 20 32 20 35 0 286 287 35 67 41 208 236 227 942 959 733 733 785 785 787 787 942 619 678 682 567 600 2015 2016 2017 2018 30/06/2019 2015 2016 2017 2018 30/06/2
Slide 31: Portfolio evolution (in Mio €)
04. Financial results Portfolio evolution (in Mio €) Total Portfolio Value Portfolio Revaluations 957 971 820 854 15 12 95 774 67 35 95 94 41 124 104 26 124 104 126 597 607 661 683 847 26 847 865 661 683 607 15 10 0 -2 2015 2016 2017 2018 30/06/2019 2015 2016 2017 2018 30/06/2019 Retail Offices Deve
Slide 32: Consolidated profit and loss account
04.Financial 04. Financialresults results Consolidated profit and loss account Consolidated profit and loss account Key figures (in Mio €) FY 2016 FY 2017 FY 2018 HY 2019 Gross rental income 49.73 49.99 52.60 29.96 Direct result 40.08 39.40 40.73 23.44 Direct result per Share (in €) 5.78 5.68 5.74 3
Slide 33: Consolidated P&L account
04. Financial results Consolidated P&L account (in k€) 31/12/2017 30/06/2018 31/12/2018 30/06/2019 Gross rental income 49,993 25,701 52,595 29,955 Net service costs -609 -854 -2,166 -1,078 Total property expenses -3,047 -1,304 -2,534 -1,668 Net rental income 46,336 23,544 47,895 27,209 General costs
Slide 34: Portfolio overview
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Slide 35: Portfolio overview
05. Portfolio overview Antwerpen Turnhout Gent Brugge Shopping 1 Genk Belle-île Liège Ring Shopping Kortrijk Shopping Bastions Tournai Vilvoorde Shopping Nivelles Waterloo 35
Slide 36: Shopping centres
05. Portfolio overview Shopping centres RING SHOPPING - KORTRIJK Construction date 1973 GLA 35,000m2 Number of tenants 90 Parking # 2,000 Anchor tenants H&M, Albert Heijn, JBC, Sportsdirect.com, C&A BELLE-ÎLE - LIÈGE Construction date 1994 GLA 30,200m2 Number of tenants 99 Parking # 2,200 Anchor ten
Slide 37: Shopping centres
05. Portfolio overview Shopping centres SHOPPING 1 - GENK Construction date 1968 Renovation/Extension 2014 GLA 27,600m2 Number of tenants 101 Parking # 1,250 Anchor tenants Carrefour, Action, New Yorker, Lunch Garden, Zeeman, Casa STADSPLEIN - GENK Construction date 2007 GLA 16,000m2 Number of tenan
Slide 38: Shopping centres
05. Portfolio overview Shopping centres SHOPPING BASTIONS - TOURNAI Construction date 1979 Renovation/Extension 2018 GLA 33,500m2 Number of tenants 96 Parking # 2,000 Anchor tenants Delhaize, Zara, H&M, C&A, New Yorker, JBC SHOPPING NIVELLES Construction date 1974 Renovation/Extension 2012 GLA 28,60
Slide 39: Retail parks
05. Portfolio overview Retail parks TURNHOUT Construction date 1979 GLA 22,600m2 Number of tenants 12 Parking # 765 Anchor tenants Carrefour, Brico, Auto 5, Lunch Garden BRUGGE Construction date 1970 GLA 20,700m2 Number of tenants 12 Parking # 650 Anchor tenants Carrefour, Mediamarkt, Brico, Lunch G
Slide 40: Retail parks
05. Portfolio overview Retail parks TOURNAI Construction date 2016 GLA 10,000m2 Number of tenants 10 Parking # 365 Anchor tenants Brico, Maison du Monde, Action, Zeb 40
Slide 41: Offices
05. Portfolio overview Offices ANTWERPEN - DE VELDEKENS Construction date 2000 GLA 40,000m2 Anchor tenants Argenta, ABN Amro, Amadeus VILVOORDE - BUSINESS & MEDIA PARK Construction date 2000 GLA 20,000m2 Anchor tenants Ricoh, Amadeus 41
Slide 42: Other assets
05. Portfolio overview Other assets GENT Construction date 2014 GLA 3,800m2 + Housing 6 Number of tenants Albert Heijn, Jim’s, Kruidvat, Anchor tenants Student housing WATERLOO GLA 3,900m2 Number of tenants 9 Anchor tenants Exki, Press Shop, Club, Planet Parfum 42
Slide 43: Development overview
Development overview WERELDHAVE SAF BELGIUM
Slide 44: Case study Shopping Nivelles
06. Development overview Case study Shopping Nivelles extension / renovation Opened in 1974 2012 Total 103 shops 28,600m2 Underground Parking Fully let 15,000m2 13,600m2 extension 60 shops +43 shops 71 70 70 69 69 68 a a 55 66 54 53 52 51 50 31 32 32 a b 33 34 37 38 39 40 41 42 43 44 45 46 47 49 K3
Slide 45: Case study Shopping Bastions - Tournai
06. Development overview Case study Shopping Bastions - Tournai Retail Park Extension Shopping Opened in Total 106 shops 1979 2016 2018 Fully let Retail Park 10,000m 2 15,000m 2 RP05 18,500m 2 RP06 RP07 RP08 RP04 RP09 RP03 RP02 RP10 RP01 Extension 60 shops +10 +36 206 Shopping 207 shops shops 40 41
Slide 46: Belle-Île - Liège
06. Development overview Belle-Île - Liège Future extension / renovation Opened in All permits obtained 1994 2021-2022 for an extension Opportunity to add multifunctionality 30,000m2 ±9,000m2 extension 99 shops +30 shops 46
Slide 47: Waterloo
06. Development overview Waterloo Future - Brand-new development project of a mixed-use nature, located in the town centre and having an underground parking. Retail area It will consist of a new boutique-style shopping - and residential area. Residential new development - 47
Slide 48: Forecast & dividend policy
Forecast & dividend policy 07 48
Slide 49: Forecast & dividend policy
07. Forecast & dividend policy Dividend Actuals / Forecast 4,51% 4,45% 4,74% 5,35% 6,33% Actuals 2018 • EPRA Earnings 2018 per share: € 5.74 • Dividend 2018 per share: € 5.20 • Pay-out ratio 2018: 97% (due to increasing number of shares) 4.60 4.90 5.10 5.10 5.20 Forecast 2019 • Estimated EPRA Earnin
Slide 50: Financial structure
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Slide 51: Financing structure overview (in Mio €)
08. Financial structure Financing structure overview (in Mio €) 31/12/2018 30/06/2019 Equity 678.4 Equity 681.5 Bank loans: 110.0 Bank loans: 189.0 Financial debt: 286.0 Interco loans: 141.0 Financial debt: 287.0 Interco loans: 0.0 DCM loans: 35.0 DCM loans: 98.0 Other debt: 15.7 Total: 286.0 Other
Slide 52: Availability (in Mio €)
08. Financial structure Availability (in Mio €) 30/06/2019 Committed Utilised Availability Bank loans 266.0 189.0 77.0 Interco loans 150 - 50.0** DCM loans -* 98.0 2.0 Total 416.0 287.0 129.0 *Treasury note program of 100 Mio € not committed ** Back-up DCM loans deducted 52
Slide 53: Fixed/floating rates financial debt (in Mio €)
08. Financial structure Fixed/floating rates financial debt (in Mio €) 31/12/2018 30/06/2019 Total fixed rate debt: 60 Total fixed rate debt: 60 Total floating rate debt: 226 Total floating rate debt: 227 Hedging instruments: 50 Hedging instruments: 100* Hedge ratio: 38.5% Hedge ratio: 55.7% * 50 Mi
Slide 54: Share price evolution
Share price evolution WERELDHAVE "A BELGIUM 7
Slide 55: Bel-20 and EPRA against Wereldhave Belgium (10yr)
09. Share price evolution Bel-20 and EPRA against Wereldhave Belgium (10yr) 160 140 120 100 80 60 Wereldhave Belgium average annual yield: 40 5.4% (Bel20: 7.6% / EPRA index: 9.6%) 20 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Wereldhave Belgium BEL20 Index rebased EPRA Index rebased 55
Slide 56: Synthetic European Retail REIT Index against Wereldhave Belgium
09. Share price evolution Synthetic European Retail REIT Index against Wereldhave Belgium (10yr) 235% 215% 195% 175% 155% 135% Wereldhave Belgium slightly outperforming 115% European retail REIT (5.94% vs 5.74%) 95% 75% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Synthetic European Retail
Slide 57: Objectives 2019-2020
Objectives 2019-2020 WERELDHAVE BELGIUM
Slide 58: Objectives 2019-2020
10. Objectives 2019-2020 • Further consolidation of occupancy rate • Portfolio growth (through acquisition and internal development) • Financial leverage optimisation • Expansion of mixed-use development vision 58
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Slide 60: Wereldhave Belgium
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Slide 61: Contact
Contact Comm. VA Wereldhave Belgium SCA Medialaan 30/6 1800 Vilvoorde België +32 (0)2 732 19 00 CEO Kasper Deforche Kasper.Deforche@Wereldhave.com CFO & Investor Relations Cédric Biquet Cédric.biquet@Wereldhave.com