Castellana Properties Socimi Sa · BME:YCPS

Castellana Properties Socimi Sa — Investor Presentation (July 2020)

42 slides from Castellana Properties Socimi Sa's investor presentation, July 2020

  1. Slide 1: Corporate Presentation July 2020

    CASTELLANA PROPERTIES OVERVIEW / RESULTS PRESENTATION CORPORATE PRESENTATION JULY 2020

  2. Slide 2: Contents

    CORPORATE PRESENTATION CONTENTS  COMPANY OVERVIEW  STRATEGY  OUR RESPONSE TO COVID-19  COMPANY STANCE  VALUE CREATION  ESG  ANNEX I – PORTFOLIO IN DETAIL AT 31 MARCH 2020  ANNEX II – TOP 10 ASSETS BY GAV

  3. Slide 3: Who We Are

    COMPANY OVERVIEW WHO WE ARE Castellana Properties is a leading income-focused, customer-oriented and specialist retail SOCIMI (REIT) centred on investment, active management and value- enhancing repositioning of retail assets in Spain 3

  4. Slide 4: Timeline

    COMPANY OVERVIEW TIMELINE DEC 2017 NOV 2018 MAY 2019 AUG 2019 MAY 2015 Acquisition of Integration 4 SCs, owned by Acquisition of the units Acquisition of Puerta Acquisition of El Fresno Alameda SC & Pinatar Morzal Property: El Faro, Bahía Sur, owned by El Corte Inglés Europa SC €56.6m(1) and Bollull

  5. Slide 5: Main KPIs and Shareholding Structure

    COMPANY OVERVIEW MAIN KPIS AND SHAREHOLDING STRUCTURE 18 373,419 sqm 98.30 % 13.5 years 98.94 % OPERATIONAL ASSETS GLA OCCUPANCY WAULT RENT COLLECTION €56m €44m €17.1m €448m 2.47 % 44.68 % FINANCIAL GRI EBITDA NET PROFIT(1) NET DEBT(2) ALL-IN COST NET LTV (3) €1.003b (2.38 %) €559m 6.48 €/share GAV

  6. Slide 6: Our Portfolio

    COMPANY OVERVIEW OUR PORTFOLIO 9 3% 1 El Faro 10 Marismas de Polvorín 9% 2 Bahía Sur 11 Alcobendas Building 5 3 Los Arcos 12 La Heredad 11 4 Granaita 13 La Serena 8 7% 17 5 Vallsur 14 Pinatar Park 16 20% 6 Habaneras 15 Motril Retail Park 12 10% 7 Puerta Europa 16 Mejostilla 1 13 6 8 Parque Oeste de

  7. Slide 7: Our Values

    COMPANY OVERVIEW OUR VALUES PASSION FOR MAKE A DIFFERENCE ACT WITH INTEGRITY CUSTOMER- WHAT WE DO AS A TEAM & TRANSPARENCY CENTRIC APPROACH COMMITTED TO SUSTAINABLE PROACTIVE & VALUE OUR OUR CLIENTS GROWTH COMMITTED TO RELATIONSHIPS INNOVATION 7

  8. Slide 8: Why Retail?

    STRATEGY WHY RETAIL? RETAIL AND DIRECT REAL ESTATE OUTPERFORMING OTHER ASSET CLASSES. THE WORLD OF RETAIL IS CHANGING, BUT SHOPPING THEY ARE TWICE AS PROFITABLE AS OTHER CATEGORIES OVER AN 18-YEAR PERIOD CENTRES WILL CONTINUE TO PLAY A CENTRAL ROLE IN URBAN AND SUBURBAN SOCIETIES COMPARATIVE GLOBAL

  9. Slide 9: Why Castellana Properties?

    STRATEGY WHY CASTELLANA PROPERTIES? GIVING A STEP FORWARD IN RETAIL COMMITTED AT THE BUILDING ROBUST AND HIGH QUALITY ACTIVE INCOME SPECIALISTS IN RETAIL TO DELIVERING THE CUTTING-EDGE HEALTHY GROWTH PORTFOLIO MANAGEMENT FOCUS HIGHEST STANDARDS OF NEW TRENDS  Specialists in the  Driving up returns

  10. Slide 10: Why Spain Is Different?

    STRATEGY E-COMMERCE TOURISM WHY SPAIN IS DIFFERENT?  Spain was the world’s second most visited country in 2019 10% 9%  Last year, Spain welcomed a record number of foreign 9% tourist arrivals for the seventh consecutive year  The country’s total tourist expenditure reached nearly €92.2 billion in

  11. Slide 11: E-commerce and Omnichannel

    STRATEGY E-COMMERCE OMNICHANNEL 42% of the products bought in physical stores are influenced by prior online browsing ONLINE SHOPPING IS A PARTNER TO PROVIDING SHOPPERS WITH A SEAMLESS EXPERIENCE ACROSS ALL RETAIL TOUCHPOINTS. BOTH 12% of products purchased online are picked up in physical stores PH

  12. Slide 12: Action Plan

    OUR RESPONSE TO COVID-19 ACTION PLAN ACTION PLAN HIGHLIGHTS OVER PAST 3 MONTHS – APRIL to JUNE 2020 STRONG TENANT BUSINESS IS PARTNERING WITH VALUATION & INDUSTRY ROBUST DEBT PROVIDERS ASSUMPTIONS RELATIONSHIPS  Extensive scenario modelling  100% Rental discounts for April have  Extensive discuss

  13. Slide 13: Reopening Strategy

    OUR RESPONSE TO COVID-19 REOPENING STRATEGY CASTELLANA PROPERTIES HAS IMPLEMENTED MORE THAN 200 HEALTH AND HYGIENE MEASURES IN EACH SHOPPING CENTRE TO ENSURE THEY ARE A SAFE PLACE FOR CUSTOMERS, TENANTS AND STAKEHOLDERS 3 MAIN OBJECTIVES Vehicle accesses Pedestrian Travellators & Lifts & parking acc

  14. Slide 14: Asymmetric De-escalation

    OUR RESPONSE TO COVID-19 ASYMMETRIC DE-ESCALATION A GEOGRAPHICALLY DIVERSIFIED PORTFOLIO ALLOWED CASTELLANA PROPERTIES TO OPEN 12 OF ITS 16 CENTRES BY MAY 25TH 2nd MAY 11th MAY 25th MAY 8th JUNE 22nd JUNE 2020 2020 2020 2020 2020 PHASE 0 PHASE 1 PHASE 2 PHASE 3 NEW NORMALITY PREPARATION INITIAL INTE

  15. Slide 15: Impact on Spanish Economy

    OUR RESPONSE TO COVID-19 IMPACT ON SPANISH ECONOMY SHARP CONTRACTION IN LINE WITH REST OF EUROPE WITH STRONG REBOUND EXPECTED IN 2021  Spain’s GDP is forecast to contract by up to 9.7% in 2020. Market consensus points to a strong rebound of the Spanish economy in 2021  While Spanish debt could rea

  16. Slide 16: Where Are We? Top Retail Players by Owned GLA

    COMPANY STANCE / CORPORATE KPI´s WHERE ARE WE? – TOP 10 RETAIL PLAYERS BY OWNED GLA ON THE CUSP OF BECOMING MARKET LEADER, A 36% INCREASE IN GLA REQUIRED TO REACH THE TOP 3 AND 62% TO REACH THE TOP 1 579.286 m² 222.611 m2 600.000 m² 500.000 m² + 356.675 m² 400.000 m² 300.000 m² 200.000 m² 100.000 m²

  17. Slide 17: Portfolio Overview

    COMPANY STANCE / CORPORATE KPI´s PORTFOLIO OVERVIEW HIGHLY DIVERSIFIED RETAIL MIX LEADING TO SUSTAINABLE, HIGH QUALITY AND LOW RISK INCOME STREAMS BREAKDOWN BY GAV AND GRI RETAIL PORTFOLIO: FAST FACTS 3% TOP 10 TENANT GROUPS BY RENT 31 MARCH 2020 29% 16 INDITEX 11.2% GAV ASSETS ADEO 4.5% €1,003m(1)

  18. Slide 18: GAV Summary

    COMPANY STANCE / CORPORATE KPI´s GAV SUMMARY ACCRETIVE ACQUISITIONS AND REVALUATION TOOK PORTFOLIO VALUE OVER THE €1BN MARK 31ST DECEMBER 31ST DECEMBER 31ST MARCH 31ST MARCH 31ST MARCH 2016 2017 2018(1) 2019 2020 INVESTMENT VOLUME €916m €1,003m(1) €304m €308m €23m SPECIALIST IN RETAIL ASSETS INVESTM

  19. Slide 19: Active Asset Management

    COMPANY STANCE / CORPORATE KPI´s ACTIVE ASSET MANAGEMENT HIGHLY-QUALIFIED STAFF INTERNALIZED DEDICATED FULL TIME TO CASTELLANA WITH EXPERT KNOWLEDGE OF THE SECTOR INTEGRATED FUNCTIONS & OPERATIVE VALUE ADD CORPORATE VALUE ADD 1 Highly-qualified ASSET MANAGEMENT staff dedicated full time to  Lease m

  20. Slide 20: Leasing Activity

    COMPANY STANCE / BUSINESS KPI´s LEASING ACTIVITY STRONG LEASING ACTIVITY WITH POSITIVE TRENDS RESULTING IN A HEALTHY BUSINESS PORTFOLIO CONTINUED FOCUS ON ASSET MANAGEMENT WITH HIGH OCCUPANCY AND STRONG COLLECTION RATES 700000,0 m² 100,00% 99,30% 99,30% 99,32% 600000,0 m² 98,94% 98,61% 99,00% OCCUPA

  21. Slide 21: Footfall & Sales Shopping Centres

    COMPANY STANCE / BUSINESS KPI´s FOOTFALL & SALES SHOPPING CENTRES CASTELLANA PROPERTIES PORTFOLIO CONTINUES TO GROW AND FOOTFALL OUTPERFORM IN 2019 Strong positive trend across the portfolio (+ 3.9% YTD 2019) vs. national index (- 1.9%). FOOTFALL JAN – DEC 2019 (1) SALES JAN – DEC 2019 (2) Excluding

  22. Slide 22: Financial Debt Position

    COMPANY STANCE / FINANCE KPI´s FINANCIAL DEBT POSITION € MILLION 31/03/2020 31/03/2019 Gross Asset Value (GAV) 1,003.49 916.47 Gross Debt 493.83 450.35 Cash 49.06 29.39 Net Debt 448.35 420.96 METRICS €494m Gross LTV(1) 49.21% 49.14% Net LTV(2) 44.68% 45.93% Hedging debt 89.98% 98.66% (3) All-in cost

  23. Slide 23: Management Team – Key Senior Executives

    COMPANY STANCE MANAGEMENT TEAM – KEY SENIOR EXECUTIVES Alfonso Brunet Debora Santamaría, MRICs CEO & EXECUTIVE DIRECTOR CFO & EXECUTIVE DIRECTOR Real Estate expert with more than 20 years of experience in the industry, from retail and offices to Senior financial expert with more than 18 years of exp

  24. Slide 24: Growth Drivers – Customer-Centric Approach

    VALUE CREATION GROWTH DRIVERS – CUSTOMER-CENTRIC APPROACH CUSTOMER-CENTRIC APPROACH CUSTOMER ANALYTICS PROJECT THE CUSTOMER EXPERIENCE GETTING TO KNOW OUR CUSTOMERS BETTER ENCOMPASSES ALL TOUCHPOINTS IN THE BOTTOM UP APPROACH TO CUSTOMER CUSTOMER JOURNEY ENGAGEMENT TENANT MIX GENERATE IN SHOPPING CE

  25. Slide 25: Growth Drivers – Tenant Mix

    VALUE CREATION GROWTH DRIVERS – TENANT MIX TENANT MIX TRANSFORMATION INTO A HIGHLY DIVERSIFIED RETAIL PORTFOLIO WITH LOW RISK PROFILE CATEGORY BY RENT CATEGORY BY RENT 31 MARCH 2018 31 MARCH 2020 Others Customers are more demanding of F&B. DIY Others 7% Castellana Properties is heavily invested 6% P

  26. Slide 26: Potential GRI Growth

    VALUE CREATION POTENTIAL GRI GROWTH Like-for-Like Growth of 2.78% Potential Portfolio GRI Annualised over €66m SHOPPING CENTRES €45.5m 68.5% RETAIL PARKS +2.75% LfL GROWTH(2) RETAIL PARKS €18.9m 28.4% OFFICES +3.00% +2.78% OFFICES €2.0m 3.1% €m 66.4 3.2 55.9 17.9 34.3 0.5 GRI Like-for-Like Annualise

  27. Slide 27: Case Study: Granaita Retail Park Reconfiguration

    VALUE CREATION CASE STUDY: GRANAITA RETAIL PARK RECONFIGURATION GRANAITA, THE LARGEST RETAIL AND LEISURE PARK IN GRANADA, REOPENED ITS DOORS AT THE END OF MARCH 2019. BEFORE The new park is the result of merging the former Kinépolis retail park and Alameda SC. Now, Granaita offers a wide range of fo

  28. Slide 28: Case Study: Puerta Europa Acquisition 1/2

    VALUE CREATION CASE STUDY: PUERTA EUROPA ACQUISITION 1 / 2 ASSET SNAPSHOT  In July 2019, Castellana acquired Puerta Europa, a shopping centre in Algeciras.  Puerta Europa was bought from Värde Partners and has provided significant value- add to Castellana.  A dominant centre in Algeciras that off

  29. Slide 29: Case Study: Puerta Europa Acquisition 2/2

    VALUE CREATION CASE STUDY: PUERTA EUROPA ACQUISITION 2 / 2 ASSET STRATEGY DIVERSIFIED TENANT MIX  Strategically increasing ERV’s of existing tenants to take advantage of low effort rates. FASHION  Improve tenant mix by replacing underperforming tenants with stronger brands at higher ERV’s.  Impro

  30. Slide 30: Repositioning Project - Bahía Sur 1/2

    VALUE CREATION REPOSITIONING PROJECT - BAHIA SUR 1 / 2 CURRENT LAYOUT FUTURE LAYOUT (1) ACQUISITION OF EL CORTE INGLÉS UNIT TO REINFORCE THE DOMINANCE OF THE CENTRE, BRINGING NEW AND EXCITING TENANTS TO THE CADIZ REGION Unit signed Unit committed. Advanced negotiations Unit under negotiation RETURN

  31. Slide 31: Repositioning Project - Bahía Sur 2/2

    VALUE CREATION REPOSITIONING PROJECT - BAHIA SUR 2 / 2 MAY 2020 JUL 2020 DEC 2020 Inditex units Indoor Yelmo Cines ready to redesign to open deliver finished Q1 Q2 Q3 Q4 JUN 2020 SEPT 2020 Reconfiguration units Zara, Lefties, Yelmo unit in ECI’s area highly KIko…. to ready to deliver advanced open A

  32. Slide 32: Repositioning Project - Los Arcos 1/2

    VALUE CREATION REPOSITIONING PROJECT - LOS ARCOS 1 / 2 CURRENT LAYOUT FUTURE LAYOUT (1) ACQUISITION OF HIPERCOR UNIT ENABLING IMPROVED TENANT MIX ALONG WITH STREET LEVEL RECONFIGURATION Unit signed Unit committed. Advanced negotiations Unit under negotiation RETURN METRICS Acquisition Cost €17.3m Ca

  33. Slide 33: Repositioning Project - Los Arcos 2/2

    VALUE CREATION REPOSITIONING PROJECT - LOS ARCOS 2 / 2 MAY 2020 JUL 2020 SEPT-NOV 2020 Complete Mercadona Other units set to reconfiguration to open open of Hipercor units Q1 Q2 Q3 Q4 Q2 – Q3 Relocation of some units located in central mall Works inside the centre have been progressing during Covid-

  34. Slide 34: Repositioning Project - El Faro 1/2

    VALUE CREATION REPOSITIONING PROJECT – EL FARO 1 / 2 FUTURE LAYOUT (1) UNLOCKING VALUE BY TRANSFORMING FORMER DIY BOX INTO ATTRACTIVE F&B PLAZA Unit signed Unit committed. Advanced negotiations Unit under negotiation RETURN METRICS Capex Budget €4.5m Additional NOI created €0.25k 17 9,833 sqm 65.1 %

  35. Slide 35: Repositioning Project - El Faro 2/2

    VALUE CREATION REPOSITIONING PROJECT - EL FARO 2 / 2 SEPT-OCT 2020 JUN 2020 Yelmo Opening DEC 2019 Castellana works Yelmo unit - finished and units Other units set to delivered ready to deliver open Q1 Q2 Q3 Q4 Major drive to push the project forward in the last 6M (+25% GLA signed and committed). A

  36. Slide 36: Environmental and Social

    ESG ENVIROMENTAL AND SOCIAL CASTELLANA PROPERTIES IS CREATING AN AMBITIOUS ESG (ENVIRONMENT, SOCIAL AND GOVERNANCE) STRATEGY AND ASPIRES TO STEP UP AND BECOME A LEADING LIGHT IN THIS AREA IN THE SECTOR, CREATING STRONGER RELATIONSHIPS WITH CUSTOMERS AND COMMUNITIES OUR ESG APPROACH ENVIRONMENTAL SOC

  37. Slide 37: Governance

    ESG GOVERNANCE Laurence Rapp CHAIRMAN OF BOD AND CHAIRMAN OF REMCO Alfonso Brunet Débora Santamaría CEO & EXECUTIVE DIRECTOR CFO & EXECUTIVE DIRECTOR Michael John Potts Jorge Morán NON-EXECUTIVE INDEPENDENT DIRECTOR NON-EXECUTIVE INDEPENDENT DIRECTOR Nigel George Payne Adam Lee Morze NON-EXECUTIVE D

  38. Slide 38: Annex I: Portfolio in Detail at 31 March 2020

    ANNEX I PORTFOLIO IN DETAIL AT 31 MARCH 2020 Nº PROPERTY DESCRIPTION ACQUISITION DATE GLA (m²) PARKING SPACES MARKET VALUE OCCUPANCY (%) 1 El Faro 31/07/2018 43,593 2,840 161,970 96.79% 2 Bahía Sur 31/07/2018 36,433 2,818 140,670 97.02% 3 Los Arcos 31/07/2018 29,696 1,800 135,760 98.77% 4 Vallsur 31

  39. Slide 39: Annex II: Top Assets by GAV 1/2

    ANNEX II TOP 10 ASSETS BY GAV 1/2 EL FARO BAHÍA SUR LOS ARCOS GRANAITA (I) VALLSUR GAV €162.0m €140.7m €135.8m €111.1m €91.4m Province Badajoz Cádiz Seville Granada Valladolid Catchment Area (Inhabitants) 517,491 674,250 1,499,884 628,002 477,746 Gross Lettable Area 43,593 m² 36,433 m² 29,696 m² 54,

  40. Slide 40: Annex II: Top Assets by GAV 2/2

    ANNEX II TOP 10 ASSETS BY GAV 2/2 PARQUE OESTE (I) MARISMAS DEL HABANERAS PUERTA EUROPA PARQUE PRINCIPADO POLVORÍN GAV €88.9m €62.9m €50.2m €33.1m €27.3m Province Alicante Cádiz Madrid Oviedo Huelva Catchment Area (Inhabitants) 531,670 311,110 5,856,325 866,511 318,213 Gross Lettable Area 24,166 m²

  41. Slide 41: Disclaimer

    RESULTS PRESENTATION DISCLAIMER PURPOSE OF THIS PRESENTATION AND LIABILITY ACCOUNTING STANDARDS APPLIED This document has been prepared by Castellana Properties SOCIMI, S.A. ("Castellana Properties") This document and the information presented herein was prepared by Castellana Properties solely with

  42. Slide 42: Contact

    Rubén Darío, 3 28010 Madrid (+34) 91 426 86 86 www.castellanaproperties.es

Castellana Properties SOCIMI — Investor Presentation (July 2020) on 6ix