Prodea Real Estate Investment Co. Sa · ATHEX:PRODEA
Prodea Real Estate Investment Co. Sa — Prodea Investments — Investor Presentation (September 2023)
31 slides from Prodea Real Estate Investment Co. Sa's investor presentation, Sep 30, 2023
Slide 1: Prodea Investments Company Presentation Q3 2023
PRODEA INVESTMENTS Company Presentation Q3 2023
Slide 2: Agenda
AGENDA • Prodea Overview • Greek Market Overview • Secured & New Projects • ESG • Capital Structure & Financials • Appendix 2
Slide 3: Prodea Overview
PRODEA OVERVIEW The leading company in Real Estate investments in the Hellenic market PRODEA Investment has a well-balanced and diversified asset exposure, expanding into the best performing sectors of Greek Real Estate, including green offices, hotels, logistics and residential. PRODEA’s real estat
Slide 4: Portfolio Metrics
PORTFOLIO METRICS High-quality diversified Largest REIC in Greece(1) portfolio €2.4bn 93.0% GAV(2), (15) Occupancy (15) €2.7bn 10.8 (4) / 8.6 (5) AUM (7), (15) WAULT (years) (15) 335 €150.6m Number of properties(2), (15) Annualized gross rent (15) 1.4m 6.6% GLA (sqm) (15) Gross rental yield(3), (15)
Slide 5: Strategic Goals
STRATEGIC GOALS Benefit from the positive momentum in the Greek market; with an aim of ensuring an increased recurring income Lack of new stock Increased tenant demand for quality spaces Increase in rents Compressing yields Strong emphasis on green portfolio of office aiming to become the biggest gr
Slide 6: Investment Approach
INVESTMENT APPROACH PRODEA has a strong track record achieved with a well-defined strategy Disciplined acquisition Active asset management Optimal financing ▪ Acquisitions driven by fundamentals and a ▪ Maintain revenue visibility - high occupancy ▪ Target c.40-45% Gross LTV, c.35-40% Net LTV long-t
Slide 7: Macro Recovery Momentum in Greece
MACRO RECOVERY MOMENTUM IN GREECE After significant reforms to aid the country’s recovery from deep economic depression, Greece’s macro-outlook has strengthened, boosting investors’ confidence in the country’s prospects. The current political stability, combined with the robust economic recovery and
Slide 8: Favorable Greek RE Sector Fundamentals
FAVORABLE GREEK RE SECTOR FUNDAMENTALS Despite the evident contraction of the RE yields in Greece over the last 5-6 years, they are still attractively trailing behind those of other EU countries Evolution of Real Estate Yields in Greece Prodea vs. Greek & European Yields(1) Prime Office Yield Trends
Slide 9: Well Diversified Portfolio
WELL DIVERSIFIED PORTFOLIO (15) Hospitality Bank branches 10% 14% Retail / Big AUM(7): boxes €2.7bn 18% Offices Logistics 46% 5% Other 7% Hellenic Market: 282 properties in Greece and 24 properties in Cyprus with value of €2,170m. Italy(12): 25 properties in 16 cities with value of €402m. Bulgaria &
Slide 10: Investment Footprint
INVESTMENT FOOTPRINT(15) 49% 15% 21% 15% Offices Bank branches Retail Logistics / Hospitality Total / Other(8) No. of properties(9) 69 120 104 42 335 GLA(10) (000 sqm) 614 112 358 297 1,380 GAV Appraised value 2,421 1,191 (in €m)(10),(2) 366 504 359 90% 100% 95% 94% 93% Occupancy : WAULT incl. break
Slide 11: Investment Footprint
INVESTMENT FOOTPRINT (15) Hellenic market: 282 properties in Greece and 24 properties in Cyprus Italy(12): 25 assets in 16 cities AUM Value: €2,170m | GLA: 1,108k sqm | Occupancy: 96.4% | Key cities(13): 84.5% AUM Value: €402m | GLA: 192k sqm | Occ.: 73.6% | Key cities(13): 59.0% Milan Breakdown 7 7
Slide 12: Strong Tenants
STRONG TENANTS Favorable lease terms minimizing cash flow leakage 8.6 / 10.8 years WAULT including/excluding break options c.85% of annualized rents not subject to break options c.92% of the annualized rent is subject to uplift linked to inflation rate or otherwise indexed TTEC 12
Slide 13: Mediterranean Hospitality Venture
MEDITERRANEAN HOSPITALITY VENTURE • Focus on large high-end resort hospitality investments with development potential • PRODEA holds a 25% stake in MHV • MHV’s main hospitality markets are Greece and Cyprus, which both benefit from a combination of a strong tourism industry, world-class transport in
Slide 14: Green Certified Buildings (Indicative Projects)
GREEN CERTIFIED BUILDINGS (INDICATIVE PROJECTS (1)) Total GAV of certified and under certification Green buildings (upon completion of developments): €538m c.39% of Offices will be Green certified (in terms of GAV) ✓ Asset name: The Wave, Syggrou ✓ Asset name: Karela Office Park ✓ Asset name: eLemen
Slide 15: Secured & New Projects
SECURED & NEW PROJECTS 15
Slide 16: Secured & New Projects
SECURED & NEW PROJECTS c.€517m of Projects(1) | More than 266,000sqm | 95% Secured | 93% Green Certified Other Mixed Use Convetional In Negotiations 5% (Office & Retail) (Office & Retail) 5% 5% 7% Logistics 13% Offices 42% Segment Energy Progress Green Certified Secured Hotels & Residential 95% 93%
Slide 17: Rent Evolution
RENT EVOLUTION Potential Annualized Rent Evolution Generated from Secured Projects 35,0 30,0 25,2 25,0 21,0 20,0 15,5 15,0 10,7 23,0 10,4 18,8 10,0 13,4 4,7 8,2 8,6 5,0 3,2 1,5 2,2 2,2 2,2 2,2 2,2 - €'mn H2 2023 H1 2024 H2 2024 H1 2025 H2 2025 H1 2026 (b) Management Estimates for Annualised Rents Ge
Slide 18: Environmental, Social, Governance
ENVIRONMENTAL, SOCIAL, GOVERNANCE 18
Slide 19: PRODEA's Strategic Vision and Goals
PRODEA’s Strategic Vision and Goals PRODEA aims to create long term value for shareholders, employees, clients, and other stakeholders, by allocating capital to property investments in a sustainable and responsible way Sustainable Environmental investments responsibility PRODEA's strategic pillars H
Slide 20: PRODEA's Sustainability Highlights
PRODEA’s Sustainability Highlights (2022 assessment) (2023 assessment) EPRA Sustainability Performance Report, 2023 Inaugural Sustainability Report, 2023 Green Bond Investors Report, 2023 Environment Social Corporate Governance • 39% of offices completed or on-boarded, are certified or under certifi
Slide 21: Capital Structure & Financials
CAPITAL STRUCTURE & FINANCIALS 21
Slide 22: Capital Structure
CAPITAL STRUCTURE Debt Split by Category Debt Split by Rate Type Fixed 22% Public Bonds 22% Key Figures as at 30 September 2023 Floating 35% (in €m unless otherwise stated) Pre NBG Portfolio Sale Post NBG Portfolio Sale Gross Debt 1,342 1,281 Syndicated Cash & Restricted Cash 176 269 Bonds 78% Hedge
Slide 23: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE Financial Performance (in €m) Total shareholders’ return per share 163.4 IRR: c.11%(1) 8.89 149.7 Multiple: c.2.2x 8.64 8.06 0,29 0,29 127.2 7.30 0,29 118.0(2) 6.90 2,73 108.5 6.09 2,58 102.8(2) 5.63 2,30 1,34 1,95 5.10 5.31 4.93 1,05 0,63 0,83 4.05 0,43 5,56 5,35 5,47 5
Slide 24: Appendix
APPENDIX 1. Consolidated Statement of Financial Position 2. Consolidated Income Statement 3. EBITDA & FFO Calculations 4. NAV break-down 5. Notes 24
Slide 25: Consolidated Statement of Financial Position – IFRS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION – IFRS Amounts in € ’000s Dec-2021 Dec-2022 Sep-2023 Assets Non-current assets Investment property 2,279,958 2,491,284 2,325,220 Equity method investments and investments in joint ventures 104,972 157,336 152,445 Property and equipment 10,632 10,171 10,01
Slide 26: Consolidated Income Statement – IFRS
CONSOLIDATED INCOME STATEMENT – IFRS Amounts in € ’000s Dec-2021 Dec-2022 LTM Sep-2023 Continuing Operations Revenue 134,204 186,923 202,935 Gain from disposal of investment property 197 1,367 1,181 Direct property related expenses (14,925) (16,578) (16,516) Property taxes – levies (10,087) (11,541)
Slide 27: EBITDA and FFO Calculations
EBITDA AND FFO CALCULATIONS EBITDA Amounts in € ’000s Dec-2021 Dec-2022 LTM Sept-2023 Profit for the period from continuing operations 175,081 123,771 80,128 Plus: Depreciation and Amortization 556 549 522 Plus: Net Finance costs 37,776 42,754 67,468 Plus: Taxes 3,222 861 9,368 EBITDA 216,635 167,93
Slide 28: NAV Break-down
NAV BREAK-DOWN Amounts in € ’000s Dec-2021 Dec-2022 Sept-2023 Shareholders’ Equity 1,396,080 1,465,735 1,490,222 Plus: IFRS Adjustment (1) 251 9,500 10,281 NAV 1,396,311 1,475,235 1,500,503 (1) Difference between the NBV and the market value (as determined by the independent statutory valuers) of th
Slide 29: Notes
NOTES Source: Company information for 30 September 2023 & Financial Statements for financial year 2022. Note: Unless stated otherwise, all data refers to the period ended 30 September 2023. (1) Based on GAV. (2) GAV includes Investment properties plus Company’s headquarters (€10.9m) and real estate
Slide 30: Disclaimer
DISCLAIMER By viewing or receiving this presentation, you are agreeing to be bound by the following limitations. This corporate presentation (the CP) has been prepared by Prodea Real Estate Investment Company Societe Anonyme (the Company) and has not been independently verified. Τhe Company does not
Slide 31: Disclaimer (Continued)
DISCLAIMER (CONTINUED) Forward Looking Statements Certain statements in this presentation are forward-looking. This presentation also includes certain forward-looking information related to the Company’s pipeline. Such information is given only based on Company’s reasonable expectations or estimates
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