Wereldhave Belgium Sca · EURONEXT:WEHB
Wereldhave Belgium Sca — Wereldhave Belgium — Investor Presentation (2020)
60 slides from Wereldhave Belgium Sca's investor presentation, 2020
Slide 1: Corporate presentation 2020
Corporate presentation 2020
Slide 2: Wereldhave Belgium
Wereldhave BELGIUM
Slide 3: Hien spe
Hien spe VV SOREN a =—=— 8. NM = * — ——
Slide 4: Agenda
01. Wereldhave Belgium at a glance p5 02. The retail market in Belgium p12 03. Corporate strategy p18 04. Operational results 2019 p26 05. Financial results 2019 p32 06. Portfolio overview p40 07. Development overview p47 08. Forecast & dividend policy p52 09. Share price evolution p54 10. Q&A p57 4
Slide 5: 01. Wereldhave Belgium at a glance
01. Wereldhave Belgium at a glance 5
Slide 6: 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 961.3 Mio € as of 31 December 2019 → St
Slide 7: 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% Pay-out: > 80% of net proceeds 7
Slide 8: Shareholding
01. Wereldhave Belgium at a glance Shareholding Market capitalisation ±660 Mio € * Free Wereldhave Float Group (NL) 33.5% 66.5% *MARKET CAPITALISATION ON 5 FEBRUARY 2020 8
Slide 9: Key Figures: Balance Sheet
01. Wereldhave Belgium at a glance Key Figures Balance Sheet 2017 2018 2019 Real Estate Portfolio (Mio €) 853.6 956.7 961.3 → Increasing portfolio and net asset values EPRA Occupancy Ratio (in %) 94.3 96.2 95.2 Net Asset Value (Mio €) 619.3 678.4 689.2 → High occupancy Financial Debts (Mio €) 234.0
Slide 10: Key Figures: Profit and Loss Account
01. Wereldhave Belgium at a glance Key Figures Profit and Loss Account 2017 2018 2019 Gross Rental Income (in Mio€) 54.64 57.78 63.94 → Increasing rental income and direct result Direct Result (in Mio €) 39.39 40.73 45.62 Indirect Result (in Mio €) 15.30 -0.19 -16.66 → Increasing EPRA Earnings Total
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Slide 12: 02. The retail market in Belgium
02. The retail market in Belgium 12
Slide 13: 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 importanceof technology & data → Continued growth in lifestyle, wellbeing and food &
Slide 14: General occupier market: take-up
02. The retail market in Belgium General occupier market: Take-up retail Belgium, number of deals Leasing and owner-occupation activity 500 75 400 Shopping 37 centre 47 300 Out of 183 225 town retail 178 200 Main 100 street 132 130 106 0 2017 2018 2019 SOURCE: CUSHMAN & WAKEFIELD 14
Slide 15: Retail investment market: prime yields
02. The retail market in Belgium Retail investment market Prime yields by segment Prime yields by segment (in %) 7 6 Out of town retail 5.25 5 Shopping centre 4.00 4 High street 3.50 3 2 2014 ’15 ’16 ’17 ’18 2019 15
Slide 16: General occupier market: prime rents
02. The retail market in Belgium General occupier market: Prime rents per segments Prime rent evolution Average prime rent (in €/m2/Y) 2,000 190 High street (LHS) 1,800 High street 180 1,850 euro/m2 Retail warehouse (RHS) 1,600 Retail warehouse 170 165 euro/m2 1,400 160 Shopping centre (LHS) Shoppin
Slide 17: Retailers still focus on AAA locations
‘Retailers still focus on AAA locations. Adaptability is key and rents are slightly under pressure in the high street and shopping centres.’ 17
Slide 18: 03. Corporate strategy
03. Corporate strategy 18
Slide 19: Value creation model
03. Corporate strategy Value creation model Wereldhave Belgium is a specialised Shopping Centres and Retail Parks investor and operator, aiming to transform its assets to Full Service Centres. The company strongly believes in the added value of owning and managing its own assets. Therefore the struc
Slide 20: Full Service Centres
03. Corporate strategy Full Service Centres: much broader focus than retail We are well-positioned to transform our assets to Full Service Centres 1 2 3 4 Favorable Attractive Scale Total locations rents and return skill strategy Densely populated Current rent levels Size of portfolio Capital alloca
Slide 21: Mission: help consumers fulfill everyday life needs
03. Corporate strategy Mission: help consumers fulfill everyday life needs Residential & hotels Groceries, Health, relax & fresh & services beauty Fixin ing gt be h ll - eb We Full-service asi centres cs Work for better everyday (Sel space & Transport life offices life f )e ng re i xp ss jo y ion En
Slide 22: Structure of the company
03. Corporate strategy Structure of the company Shopping 1 Genk Development Ring Shopping Kortrijk Legal Finance Shopping Nivelles CEO Shopping Bastions Tournai Leasing/Investment HR Belle-Île Liège Operations/Building & Maintenance Retail Parks, Offices & other 22
Slide 23: Wereldhave Belgium Team
03. Corporate strategy Wereldhave Belgium Team Passion for your client Entrepreneurship Collaboration 23
Slide 24: Corporate social responsibility
03. Corporate strategy Corporate social responsibility Better Enriching communities & protecting the environment where we operate tomorrow Better Better Better footprint nature living 01. Energy + carbon 04. Résilience 06. Wellbeing 02. Materials 05. Habitats 07. Employees 03. Value chain 08. Commun
Slide 25: Corporate social responsibility
03. Corporate strategy Corporate social responsibility
Slide 26: 04. Operational results 2019
04. Operational results 2019 26
Slide 27: Main portfolio events: Leasing
04. Operational results 2019 Main portfolio events Leasing → 66 leasing activities → Representing 10.5% of the rental income → Belle-Île, Liège: surface (5,000m ) vacated by Carrefour successfully 2 re-let: Decathlon, Action, Villeneuve, Medi-Market, etc. → Shopping 1, Genk: surface (6,000m2) vacate
Slide 28: Main portfolio events: Operations
04. Operational results 2019 Main portfolio events Operations +5% 100% traffic over all the assets in Breeam in Use certifed 2019 (cfr. -0.88% Belgian buildings (excl. development Market Index) results in projects) + 1.1% sales “Outperforming the market is only possible “Breeam is more than a checkl
Slide 29: Operations: Flow users
04. Operational results 2019 Main portfolio events Operations 1,159 users active on flow with → Customer Journey Implementation - Accelerating 80% involvement through concept design and central management “When we actively want to manage our buildings, we need to be at all times communicating with o
Slide 30: Main portfolio events: Investment
04. Operational results 2019 Main portfolio events Investment Further consolidation of the portfolio: → Additional investments (CAPEX) in the portfolio (18.9 Mio €) → Real Estate residual rights acquired in Kortrijk (2.7 Mio €) → Additional retail units acquired in Shopping 1, Genk (0.3 Mio €) 30
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Slide 32: 05. Financial results 2019
05. Financial results 2019 32
Slide 33: Main equity events
05. Financial results 2019 Main equity events → Optional dividend distributed on 15 May 2019 21.4 Capital increase of Mio € → 78% Subscription in stocks 33
Slide 34: Main financing events
05. Financial results 2019 Main financing events 2019 → Extension of the intercompany loan (Wereldhave NL) for an amount of Average cost 150 Mio € over 5 years. → of debt: 0.81% → Full utilization of the Treasury Notes program, optimalizing the average cost of financing → Acquisition of IRS instrume
Slide 35: Financial structure
05. Financial results 2019 Financial structure Financing structure overview (in Mio €) 2018 2019 Equity 678.4 689.2 Financial debt 286.0 273.0 Bank loans 110.0 180.0 Interco loans 141.0 0.0 (Back-up CP) DCM loans 35.0 93.0 Other debt 15.7 31.4 Total Equity & debt 980.1 993.6 LTV ratio 29.7% 29.3% Av
Slide 36: Consolidated balance sheet
05. Financial results 2019 Consolidated balance sheet 787 787 942 942 949 949 2017 2018 2019 Assets (in mio €) Liabilities (in mio €) 2017 2018 2019 884 980 994 884 884 980 980 994 994 884 980 994 23 32 16 16 32 32 23 32 Other 30 30 Other 29 29 15 13 assets 15 13 liabilities 67 286 273 Development 6
Slide 37: Portfolio evolution
05. Financial results 2019 Portfolio evolution 683 847 856 2017 2018 2019 Total Portfolio Value (in mio €) Portfolio Revaluations (in mio €) 854 884 957 980 961 994 854 15 957 13 961 15 23 13 32 92 67 95 Development 30 67 95 92 15 13 projects 15 104 67 Offices 104 0 -17 2017 2018 2019 Retail 683 856
Slide 38: Consolidated P&L account
05. Financial results 2019 2017 2018 2019 Portfolio evolution Gross rental income 54,644 57,779 63,936 Consolidated P&L account (in k€) Service costs charged 9,576 11,576 7,880 Service costs paid -11,253 -13,566 -10,407 Net Service costs -1,677 -1,990 -2,528 Property expenses -6,606 -7,627 -8,397 Ne
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Slide 40: 06. Portfolio overview
06. Portfolio overview 40
Slide 41: Portfolio overview map
06. Portfolio overview Brugge Antwerpen Turnhout Gent Shopping 1 Genk Belle-île Liège Ring Shopping Kortrijk Shopping Bastions Tournai Shopping Nivelles Waterloo Vilvoorde 41
Slide 42: Shopping centres
06. Portfolio overview Shopping centres Ring Shopping - Kortrijk Belle-Île - Liège Shopping 1 - Genk Opening / renovation date 1973 / 2005 1994 / 2020 1968 / 2014 GLA 31,900m2 30,300m2 21,400m2 Number of tenants 90 100 60 Parking # 2,000 2,200 1,250 Anchor tenants H&M, Albert Heijn, JBC, Decathlon,
Slide 43: Shopping centres
06. Portfolio overview Shopping centres Stadsplein - Genk Shopping Bastions - Tournai Shopping Nivelles Opening / renovation date 2007 1979 / 2018 1974 / 2012 GLA 15,500m2 34,100m2 29,200m2 Number of tenants 25 96 100 Parking # 44 2,000 1,452 Anchor tenants Zara, H&M, C&A, Delhaize Delhaize, Zara, H
Slide 44: Retail parks
06. Portfolio overview Retail parks Turnhout Brugge Tournai Opening / renovation date 1979 1970 2016 GLA 21,000m2 20,700m2 10,300m2 Number of tenants 12 13 10 Parking # 765 650 360 Anchor tenants Carrefour, Brico, Auto 5, Carrefour, Brico, Media Brico, Maison du Monde, Lunch Garden Markt, Lunch Gard
Slide 45: Offices
06. Portfolio overview Offices Antwerpen - De Veldekens Vilvoorde - Business & Media Park Opening / renovation date 1999 / 2002 1998 / 2002 GLA 38,400m2 22,100m2 Number of tenants Parking # 769 639 Anchor tenants Argenta, ABN Amro, Ricoh, Amadeus Amadeus 45
Slide 46: Other assets
06. Portfolio overview Other assets Gent Waterloo Opening / renovation date 2014 1967 GLA 4,000m2 3,500m2 Number of tenants 5 12 Parking # 0 95 Anchor tenants Albert Heijn, Jim’s, Exki, Press Shop, Club, Kruidvat Planet Parfum 46
Slide 47: 07. Development pipeline
07. Development pipeline 47
Slide 48: Committed: Belle-Île - Liège
07. Development pipeline Commited: Belle-Île - Liège GLA 30,000m 2 Opened in Mixed- Additional GLA 1995 Use +11,000 m 2 Renovation / Extension 2019- 2022 Investment 60 MIO € Additional New shops car park capacity +30 Shops +200 99 48
Slide 49: Committed: Belle-Île - Liège new extension
07. Development pipeline Commited: Belle-Île - Liège New extension 49
Slide 50: Uncommitted development projects
07. Development pipeline Uncommited Waterloo Ring Shopping Kortrijk Brugge retail park Mixed-use development project, Renovation of outdoor facades Refurbishing single tenant building to located in the city centre having and entrances including topping multi-tenant concept with small kiosks for unde
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Slide 52: 08. Forecast & dividend policy
08. Forecast & dividend policy 52
Slide 53: Dividend and forecast 2020
08. Forecast & dividend policy Dividend Actuals 2019 EPRA Earnings per share € 5.92 Dividend per share € 5.20 6.33% 6.03% * Pay-out ratio 89% 5.35% Distribution in optional dividend expected Dividend yield* Forecast 2020 Gross dividend 5.10 5.20 5.20 Estimated EPRA Earnings per share 2017 2018 2019
Slide 54: 09. Share price evolution
9. Share price evolution 54
Slide 55: Bel-20 and EPRA against Wereldhave Belgium (10yr)
09. Share price evolution Bel-20 and EPRA against Wereldhave Belgium (10yr) 240 yield Average annual 150 220 Wereldhave 200. . . 5.4% Belgium 100 180 Bel20. . . . . . . 7.6% 160 EPRA 140 index . . . . . . . 9.6% 50 120 100 80 0 2009 ’11 ’13 ’15 ’17 ’19 2009 ’11 ’13 ’15 ’17 ’19 55
Slide 56: Synthetic European Retail REIT Index against Wereldhave Belgium
09. Share price evolution Synthetic European Retail REIT Index against Wereldhave Belgium (10yr) Wereldhave 240 150 Belgium rebased 220 Synthetic 200 European Retail 100 180 REIT Index 160 140 50 Wereldhave Belgium 120 slightly outperforming European retail REIT 100 (5.94% vs 5.74%) 0 80 2009 ’11 ’1
Slide 57: 10. Q&A - Contact
10. Q&A - Contact 57
Slide 58: Contact
10. Contact → Wereldhave Belgium 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 58
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Slide 60: Wereldhave Belgium
Wereldhave BELGIUM