Slide 1: FY 2018 Results
FY 2018 RESULTS WERELDHAVE
Slide 2: Company profile: key facts
CONVENIENCE SHOPPING CENTRES IN NORTH-WEST EUROPE COMPANY PROFILE 16 KEY FACTS 9 • Numbers of shopping centres 31 • Average size 27,300m² • Numbers of shopping centre 135m visitors (2018) 1 6 • Loan to value ratio2 37.5% • Occupancy shopping centres 96.3% • EPRA NIY shopping centres 5.3% • WALT3 5.3
Slide 3: Portfolio breakdown
CONVENIENCE SHOPPING CENTRES IN NORTH-WEST EUROPE COMPANY PROFILE PORTFOLIO BREAKDOWN 3% 29% 44% € 3.3 bn € 3.3 bn 27% 97% Belgium France Netherlands Shopping centres Offices 3
Slide 4: Highlights 2018
HIGHLIGHTS 2018 4
Slide 5: Highlights FY 2018
HIGHLIGHTS FY 2018 2017 2018 CHANGE Direct result per share 3.43 3.33 (2.9%) Indirect result per share (1.75) (5.02) EPRA NAV per share 50.00 43.82 (12.4%) Dividend per share 3.08 2.52 (18.2%) LTV 40.7% 37.5% -320bps • Disposal of Finland led to strong balance sheet • Direct Result continued operati
Slide 6: Highlights FY 2018: net rental income by country
HIGHLIGHTS FY 2018 NET RENTAL INCOME (€M) 2017 2018 GROWTH LFL GROWTH Belgium 37.6 40.5 8% +0.3% Growth driven by Les Bastions extension; LFL below index impacted by void period large unit Nivelles that has now been filled and free parking Genk France 40.8 39.2 (4%) (3.5%) Improving LFL numbers vers
Slide 7: Operational Performance
OPERATIONAL PERFORMANCE 7
Slide 8: Leasing performance: returning to positive LFL rent growth
LEASING PERFORMANCE: RETURNING TO POSITIVE LFL RENT GROWTH # OF LEASING MGR OCCUPANCY LFL RENT COUNTRY REMARKS CONTRACTS VOLUME UPLIFT RATE GROWTH Belgium 59 11.4% 4.9% 97.2% +0.3% Positive with some friction vacancy France 49 10.0% 0.9% 94.0% (3.5%) Lagging effect secured contracts H2 2017. This ye
Slide 9: Positive in the Netherlands & Belgium, negative but improving in France
POSITIVE IN THE NETHERLANDS & BELGIUM, NEGATIVE BUT IMPROVING IN FRANCE LFL NRI GROWTH LFL NRI GROWTH (% YOY) 2.3% 2.0% 1.8% 1.5% 1.8% 0.8% 0.8% 1.0% 0.3% 0.0% 0.1% -1.0% -1.1% -0.7% -1.3% -3.4% -3.5% -3.9% -5.1% -7.0% Belgium France Netherlands Shopping centres H1 2017 FY 2017 H1 2018 FY 2018 Index
Slide 10: Growth in all countries: occupancy
GROWTH IN ALL COUNTRIES OCCUPANCY EPRA OCCUPANCY RATE SHOPPING CENTRES (%) 97.2% 97.1% 96.7% 96.8% 96.5% 96.2% 96.1% 96.3% 95.7% 95.4% 95.5% 94.9% 94.0% 93.6% 93.3% 93.2% Belgium France Netherlands Shopping centres H1 2017 H2 2017 H1 2018 H2 2018 10
Slide 11: Outperforming the market: footfall
OUTPERFORMING THE MARKET FOOTFALL 12M CHANGE IN VISITORS (%) 7.6% 6.5% 3.4% 2.7% 1.4% 1.4% 1.4% 0.8% 0.7% 0.8% 1.0% 0.6% 0.1% 0.2% 0.4% 0.1% -0.9% -1.0% -1.7% -1.5% Belgium France Netherlands Shopping centres H1 2017 H2 2017 H1 2018 H2 2018 Market 2018 11
Slide 12: France impacted by warm weather & demonstrations
FRANCE IMPACTED BY WARM WEATHER & DEMONSTRATIONS TENANT SALES 1 LIKE-FOR-LIKE 12M TENANT SALES (%) 1.3% 1.3% 1.5% 0.5% -1.6% -1.8% -2.1% -3.6% -4.4% Belgium France Shopping centres 2017 H1 2018 2018 1 Excluding hypermarkets and supermarkets; H1= year-to-May, FY=December-to-November 12
Slide 13: Financial Performance FY 2018
FINANCIAL PERFORMANCE FY 2018 13
Slide 14: Direct result modestly declines on disposals
DIRECT RESULT MODESTLY DECLINES ON DISPOSALS DIRECT RESULT BRIDGE (IN € M) € -3.4 €150.1 €2.0 -€2.7 -€6.0 -€0.9 €146.7 €4.2 1 2 3 Direct result NRI disposals NL, NRI standing portfolio General cost (mainly Net interest Tax & other Direct result 2017 Belgium & Finland savings 2017 2018 reorganisation
Slide 15: Net rental income almost stable despite disposals
NET RENTAL INCOME ALMOST STABLE DESPITE DISPOSALS NET RENTAL INCOME BRIDGE CONTINUED OPERATIONS (IN € M) € -0.9 €167.3 €166.4 €2.3 -€4.9 €1.2 €0.5 1 NRI 2017 Disposals NL and Belgium Key money Like for Like Other NRI 2018 Indemnities MAIN OTHER MOVEMENTS DUE TO 1 Adjustments of impact of development
Slide 16: Lower indirect result from revaluations
LOWER INDIRECT RESULT FROM REVALUATIONS INDIRECT RESULT BRIDGE (IN € M) -€1.6 -€94.5 -€18.3 -€82.6 -€3.1 -€3.6 €1.4 -€202.3 Valuation results Results on disposal Valuation results Results on disposal Customer Journey Other income Taxes on Total indirect continuing continuing Finland H1 Finland H2 &
Slide 17: Breakdown discontinued operations Finland
BREAKDOWN DISCONTINUED OPERATIONS FINLAND EUR m DIRECT INDIRECT TOTAL NRI & General costs 29 29 Valuation result H1 (18) (18) Book loss (48) (48) Capex Finnkino & other (22) (22) Other (transaction costs, working (13) (13) capital, deferred tax asset) Total discontinued 29 (101) (72) 17
Slide 18: Investment markets & values
INVESTMENT MARKETS & VALUES France ▪ Investment market showed limited transactional activity ▪ Several centres for sale, some taken off the market ▪ Slight adjustment in EPRA NIY (+10bps) Belgium ▪ High investment activity for shopping centres (e.g. Docks Bruxsel, Rive Gauche, Woluwe) ▪ Pricing leve
Slide 19: Revaluations
REVALUATIONS VALUE (€ M)1 REVALUATION 2018 EPRA NIY (%) 2017 2018 €M % 2017 2018 Belgium 750 862 5.4 0.6% 5.3% 5.5% France 877 879 (33.8) -3.7% 4.6% 4.7% Netherlands 1,471 1,445 (59.3) -3.9% 5.3% 5.6% Shopping centres 3,098 3,186 (87.7) -2.7% 5.1% 5.3% Offices 104 95 (6.8) -6.7% 6.8% 8.1% Total cont
Slide 20: Revaluations: rents & yield shift
REVALUATIONS: RENTS & YIELD SHIFT BREAKDOWN OF VALUATION RESULT Belgium -1.1% 1.7% France -4.3% 0.6% Netherlands -2.5% -1.4% Shopping centres -2.7% Belgium offices -17.9% 11.2% Total portfolio -2.2% -0.6% Yield shift Market rent & other 20
Slide 21: Financing
FINANCING 21
Slide 22: Debt profile
DEBT PROFILE 2017 2018 COVENANTS POLICY Interest bearing debt1 € 1,562m € 1,362m Average cost of debt 1.96% 2.08% Undrawn committed € 240m € 430m Cash position € 14m € 126m Fixed vs floating debt 82%/18% 97%/3% 75%/25% LTV 40.7% 37.5% ≤60% ≤ 40% ICR 6.6X 6.2X ≥2.0X ≥2.0X 1 Nominal value of interest
Slide 23: Debt mix
DEBT MIX Q4 2017 Q4 2018 • Proceeds of Finland used to repay drawings under 3% 1% 1% revolving credit facilities 16% 21% 18% 32% • Stand-by facility standby over the course of the € 1,562m € 1,362m summer; cancelled following Finland disposal 51% 57% • Baa2 with a stable outlook credit rating by Moo
Slide 24: Long-term sustainable value creation
LONG-TERM SUSTAINABLE VALUE CREATION SUSTAINABILITY ACHIEVEMENTS GRESB FIVE STARS DJSI inclusion Europe ISS-OEKOM 5th year in a row 4th year in a row Prime Status 3th retail listed ESG industry leader worldwide BREEAM VERY GOOD Carbon Disclosure Project EPRA sBPR GOLD OR HIGHER 2012 - 2018 3th year
Slide 25: Leading environmental, social and governance (ESG) practices
LEADING ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) PRACTICES GOVERNANCE SOCIAL Wereldhave is recognized for its best-in-class We create places that cater the needs of local corporate governance practices: ENVIRONMENTAL • GRESB Governance score 94/100 At Wereldhave we care about our impact on communi
Slide 26: Environmental, social & governance implementation
ENVIRONMENTAL, SOCIAL & GOVERNANCE IMPLEMENTATION 12,500 solar panels Het Idee 11 shopping centres Gasless heating Ring Shopping Kortrijk Shopping centre Kronenburg ♥ CO2 +4,500 solar panels Luik, Doornik & Maassluis 2019 - 2020: Opening shop & bistro offering work for Aim to install 8,000 panels in
Slide 27: Country Updates
COUNTRY UPDATES 27
Slide 28: Belgium: retail market and performance
IN A RETAIL MARKET THAT RECEIVED MORE NEGATIVE ATTENTION… BELGIUM MARKET SITUATION FOOTFALL GROWTH TENANT SALES GROWTH 7.6% • Steady growth of the economy (+1.5%/+1.4% for 6.5% 1.5% 2019 and 20201) 1.3% 2.7% 1.4% • Retail sales somewhat declining (-0.65%) 2 on 0.1% 2017 2018 consumer confidence cool
Slide 29: Belgium: performance demonstrates strength of the portfolio
…OUR PERFORMANCE DEMONSTRATES THE STRENGTH OF THE PORTFOLIO BELGIUM PERFORMANCE LFL NRI GROWTH CHANGE IN MGR 1.8% ROTATIONS & RENEWALS • LFL NRI growth +0.3% (index +1.8%), due to free 0.3% parking in Genk and temporary void period of large unit in Nivelles -1.0% -1.1% 4.9% -3.4% 4.6% • Healthy grow
Slide 30: Belgium: recent shop openings
RECENT SHOP OPENINGS BELGIUM SHOPPING 1 GENK SHOPPING NIVELLES • JD Sports NIVELLES • 312 m2 • Decathlon • July 2018 • 1,615 m2 • September 2018 LES BASTIONS RING SHOPPING TOURNAI KORTRIJK • New Yorker • 1,200 m2 • het idee • October 2018 • Store run by intellectually challenged persons • 119 m2 • A
Slide 31: Acquisitions of retail parks: Turnhout and Brugge
ACQUISITIONS OF RETAIL PARKS: TURNHOUT AND BRUGGE BELGIUM Turnhout, Parklaan 80 • 12 units representing 20,557 m2 GLA • € 33.1m investment • Financed through the issuance of 372,708 new <Turnhout shares Wereldhave Belgium at € 88.92 per share (NAV Q3 2018: € 89.07 per share) Brugge, Maalsesteenweg 3
Slide 32: France: challenging conditions for fashion, demand for mixed use increases
2018: CHALLENGING CONDITIONS FOR FASHION, DEMAND FOR MIXED USE INCREASES FRANCE MARKET SITUATION FOOTFALL GROWTH TENANTS SALES GROWTH 3.4% • Stable economic growth1 projected for 2019-20 1.4% at +1.6% GDP, unemployment set to decline to 0.8% 0.7% -1.6% 8.4% in 2020 (2017: 9.4%). Private consumption
Slide 33: France: improving LFL and occupancy, new anchors
IMPROVING LFL AND OCCUPANCY PROPOSITION STRONGER BY NEW ANCHORS FRANCE PERFORMANCE LFL NRI GROWTH CHANGE IN MGR ROTATIONS & RENEWALS • Improvement of LFL NRI growth to -3.5% (index 2.3% +2.3%) versus -7.0% in 2017, albeit still negative. 0.9% Increasing bad debts effect was -0.3% on LFL. -3.9% -3.5%
Slide 34: France: recent shop openings
RECENT SHOP OPENINGS FRANCE MERIADECK BORDEAUX DOCKS VAUBAN • Mango LE HAVRE • 898 m2 • Primark • December 2018 • 6,159 m2 • February 2018 DOCKS VAUBAN DOCKS 76 LE HAVRE • Superdry ROUEN • 188 m2 • Jungle Coffee • June 2018 • 203 m2 • November 2018 34
Slide 35: France: development projects
DEVELOPMENT PROJECTS FRANCE Primark successfully opened in Docks Vauban (Le Havre) on 21 February 2018: Footfall +18% yoy Le Verrerie area (Saint Sever, Rouen): pre-leasing at 95% Lease signed with Truffaut in Mériadeck for second floor Saint Sever, Rouen – Food Mandarin> 35
Slide 36: Netherlands: cautious recovery of physical retail market
A CAUTIOUS RECOVERY OF PHYSICAL RETAIL MARKET THE NETHERLANDS MARKET SITUATION FOOTFALL GROWTH 0.2% 0.4% 0.1% • 2019/2020 forecasts1 GDP growth 2.4%/1.8%; unemployment 3.6%; Private consumption 2.2%/1.9%. Inflation expected at 2.5% for 2019. -0.9% Indexation for 2019: 1.6%. -1.5% 1H17 2H17 1H18 2H18
Slide 37: Netherlands: growth in occupancy, footfall and like-for-like
GROWTH IN OCCUPANCY, FOOTFALL AND LIKE-FOR-LIKE THE NETHERLANDS PERFORMANCE LFL NRI GROWTH CHANGE IN MGR ROTATIONS & RENEWALS • LFL NRI growth +2.0% (index +1.5%); 2.0% 1.5% bankruptcies limited to 1% of GRI 0.8% 1.0% -0.2% 0.8% • Occupancy +0.6% yoy in to 97.1% -2.9% 1H17 FY17 1H18 FY18 Index 2017
Slide 38: Netherlands: recent shop openings
RECENT SHOP OPENINGS THE NETHERLANDS CITY CENTER TILBURG MIDDENWAARD • Levi’s HEERHUGOWAARD • 161 m2 • La Place • July 2018 • Redevelopment • 150 m2 • December 2018 CITYPLAZA KRONENBURG NIEUWEGEIN ARNHEM • s. Oliver + Comma, • Scapino • 476 m2 • ca. 975 m2 • August 2018 • September 2018 • Newly crea
Slide 39: Asset rotation: disposals
ASSET ROTATION: DISPOSALS THE NETHERLANDS • Q1 2018: 89 residential units on top of Koperwiek (Capelle aan den IJssel) for € 12.9m, above book value • Q4 2018: HEMA, Manfield and parking garage for € 20.6m at book value 39
Slide 40: Redevelopments on track for completion in 2019
REDEVELOPMENTS ON TRACK FOR COMPLETION IN 2019 NETHERLANDS • Koningshoek (Maassluis): Development completed, only 3 units vacant per Q4 2018 • In de Koperwiek (Capelle a/d IJssel) pre-leasing reached 80%, completion expected 2019 • Presikhaaf (Arnhem) pre-leasing reached 70%, completion expected in
Slide 41: Next Steps & Outlook
NEXT STEPS & OUTLOOK 41
Slide 42: Significant steps have been made: management agenda 2017-2019
SIGNIFICANT STEPS HAVE BEEN MADE MANAGEMENT AGENDA 2017-2019 ACHIEVEMENT PLANS 2019 TARGETS 2017-2019 2017 2018 RESPOND TO DRIVE FOOTFALL NL INVEST IN BE CUSTOMER CONSUMER TRENDS ABOVE MARKET FR JOURNEY >85% RESILIENT TENANTS 82% 83% ON TRACK MIXED-USE DRIVE EPS 97% OCCUPANCY 95.5% 96.3% ON TRACK <2
Slide 43: Customer journey: the example of Play & Relax
CUSTOMER JOURNEY: THE EXAMPLE OF PLAY & RELAX FACT-BASED & DATA DRIVEN APPROACH Customer Insights: ▪ 72% of caretakers usually find the playground experience unpleasant ▪ 65% of caretakers indicated that the playground is not catering for their needs and one of the biggest frustrations is that it is
Slide 44: Four projects in execution to improve the customer journey
FOUR PROJECTS IN EXECUTION TO IMPROVE THE CUSTOMER JOURNEY WAYFINDING PILOT: SAINT SEVER PLAY & RELAX • Services, key tenants, PILOT: DE KOPERWIEK Transport & landmarks • Surrounding barrier • Floor plans & identifcation • Easy to clean, durable materials signs • Design for multiple locations • Colo
Slide 45: Planning
PLANNING PROJECT EXECUTION CUSTOMER JOURNEY NUMBER OF CENTRES IMPACTED 2018 2019 2020 2018 2019 2020 2018 2019 2020 QUALITY & HASSLE FREE PARKING - 3 3 - 3 2 - - 2 13 WAYFINDING INSIDE & OUT 1 7 4 1 2 1 1 2 3 22 QUALITY RESTROOMS - 5 2 1 1 - - - 1 10 FAMILY PLAY & RELAX AREA 1 5 3 1 3 1 1 4 - 19 45
Slide 46: Direct result 2019: €2.75 to €2.85 per share
DIRECT RESULT 2019: € 2.75 TO € 2.85 PER SHARE OUTLOOK DIRECT RESULT (€ PER SHARE) DIVIDEND (€ PER SHARE) € 3.45 € 3.43 € 3.01 € 3.08 € 3.08 € 3.23 € 3.33 € 2.87 € 2.97 € 2.52 € 2.52 € 2.75-2.85 € 2.62 Continuing operations 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 • 2018 direct re
Slide 47: Conclusion
CONCLUSION • A FOCUSED BUSINESS MODEL ON • DEFENSIVE BUSINESS MODEL WITH LIMITED CONVENIENCE RETAIL DEVELOPMENT EXPOSURE • RELATED TO THE DAILY NEEDS OF THE • LOW SINGLE ASSET EXPOSURE CONSUMER • LOW SINGLE TENANT EXPOSURE • CUSTOMER-CENTRIC • DIVERSIFIED FUNDING SOURCES AND LOW • UPWARD TREND IN OP
Slide 48: Wereldhave
W WERELDHAVE
Slide 49: Appendices
APPENDICES 49
Slide 50: Top 10 properties
TOP 10 PROPERTIES VALUE PER DECEMBER 2018 1 2 3 4 5 Nieuwegein Strasbourg Liège Tournai1 Rouen € 222m, 50,400m² € 192m, 28,700m² € 179m, 28,800m² € 177m, 44,300m² € 174m, 37,200m² 6 7 8 9 10 Rouen Nivelles Arnhem Heerhugowaard Hoofddorp € 169m, 34,200m² € 166m, 29,200m² € 149m, 39,300m² € 146m, 35,4
Slide 51: Top 10 tenants
TOP 10 TENANTS VALUE PER DECEMBER 2018, IN % OF RENT ROLL 1 2 3 4 5 Food Fashion Fashion Health & Beauty Food 4.1% 4.0% 2.3% 2.1% 2.0% 6 7 8 9 10 Excellent Retail Brands Homeware & household Fashion Homeware & household Fashion Electronics 1.8% 1.8% 1.6% 1.6% 1.3% a 51
Slide 52: Tenant mix
TENANT MIX BREAK-DOWN BY CATEGORY CONTRACT RENT BY CATEGORY 2% 4% Food 17% 11% Services F&B / Leisure 3% 5% Fashion & accessoires Health & Beauty 12% Homeware & household 10% Sport Multimedia & Electronics 7% Department & Variety 29% Shoe & Leatherware 52
Slide 53: Like-for-like tenant sales by branche
LIKE-FOR-LIKE TENANT SALES BY BRANCHE (% YOY) EXCLUDING HYPER/SUPERMARKETS BELGIUM FRANCE TOTAL Fashion & accessoires (3.9) (8.7%) (7.0%) Food 2.3% (0.2%) 1.2% Health & beauty (1.2%) (1.3%) (1.2%) Homeware & household 0.0% (11.0%) (6.7%) Leisure n.a. (3.1%) (3.1%) Multimedia, electronics & special g
Slide 54: Development pipeline
DEVELOPMENT PIPELINE CAPEX CAPEX YIELD TOTAL PLANNED (IN €M) SPENT SPENT ON PRE-LET INVESTMENT DELIVERY (NET) 2018 COST RATE Saint Sever - Verrerie & refurb 26 20 15 9.0% 95% Q3 2019 Koperwiek 32 25 12 5.4% 80% 2019 Presikhaaf 20 18 7 6.8% 70% 2019 Total 78 63 34 54
Slide 55: NAV declined due to revaluations, disposal and deferred tax
NAV DECLINED DUE TO REVALUATIONS, DISPOSAL AND DEFERRED TAX EPRA NAV BRIDGE: 2017 TO 2018 (IN € PER SHARE) € 3.33 € 50.00 -€ 5.02 -€ 1.62 -€ 2.80 € 43.82 -€ 0.05 -€ 0.02 1 H2 2017 Direct result Indirect result Deferred Dividend Hedge reserve / FV adjustment H2 2018 tax Finland cost of hedging deriva
Slide 56: Reconciliation of EPRA NAV
RECONCILIATION OF EPRA NAV € 43.82 € 43.35 € 0.47 € -1.41 € 42.41 IFRS NAV EPRA adjustments EPRA NAV Triple adjustments EPRA NNNAV EPRA adjustments add back the liabilities related to: ▪ Fair value of interest rate derivatives ▪ Deferred tax Triple adjustments subtract the liabilities related to: ▪
Slide 57: Wereldhave: Bringing people together
aaa wy WERELDHAVE Bringing people together