Plaza Centers N.v. · LSE:PLAZ
Plaza Centers — FY2012 Earnings Presentation
39 slides from Plaza Centers's earnings presentation, Mar 14, 2013
Slide 1: Preliminary Results for the year ended 31 December 2012
Preliminary Results for the year ended 31 December 2012 14 March 2013
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made by the Plaza Centers N.V. (the “Company”) or any of their respective agents or affiliates as to, and no reliance should be placed on, the fairn
Slide 3: Agenda
Agenda SECTION 1 Financial Highlights SECTION 2 Operational Highlights SECTION 3 Summary and Outlook APPENDIX A Forecasted Cash Flow APPENDIX B Projects Overview 3
Slide 4: Financial Highlights
Financial Highlights Reduction in total assets to €958 million (31 December 2011: €1.3 billion), primarily due to the disposal of the Company‟s US assets of €263 million Increase of 45.3% in the value of completed trading properties due to the completion of Kragujevac Plaza and Koregaon Park Pla
Slide 5: Financial Highlights (cont.)
Financial Highlights (cont.) Net Asset Value per share of £1.26 (31 December 2011: £1.69), a decline of 25%, attributable primarily to the above mentioned impairments Loss for the year of €85.9 million (31 December 2011: €13.9 million profit), which stems from a non-cash €79 million impairment o
Slide 6: Financial Overview
Financial Overview Results 2012 2011 € „000 € „000 Revenues (1) 41,593 23,462 Impairment loss of trading properties(2) 78,833 47,987 Cost of operations (3) 20,385 14,849 Gross loss (57,625) (39,374) (1) 2012: CEE and India rent and management fee - €28.3m, Fantasy Park - €6.9m, Sale of trading prope
Slide 7: Financial Overview (Cont.)
Financial Overview (Cont.) 2012 2011 € „000 € „000 Administrative expenses(1) (16,848) (18,856) Other income (expense), net 1,641 (1,614) Results from operating activities (72,832) (59,844) Net finance income (cost)(2) (16,540) 73,986 Share in loss of equity accounted investees (68) (153) Tax benefi
Slide 8: Financial Overview (Cont.)
Financial Overview (Cont.) NOTES TO THE RESULTS (1) The General and administrative expenses decresed from €16.4 million in 2011 to €12.7 million in 2012, due to decreased of cost of non cash share-based payments (2012 €0.2 million, 2011: €3.1 million after restatement), with the remainder decrease o
Slide 9: Current cash balance - €90 million
Financial Overview (Cont.) Balance sheet and cash flow Net assets of €449.1 million (31 December 2010: €550.2 million), with decrease primarily due to 2012 impairments amounting to €79 million, primarily to Romanian, Hungarian and Indian assets Cash and short term deposits (including restricted
Slide 10: Company NAV
Company NAV NAV per share decreased by 24%, primarily attributable to the €79 million impairment of trading property and disposal of US assets ― 59% of the write down related to landbank assets in Romania and Hungary, reflecting depressed rental levels in those countries as well as suppressed tran
Slide 11: Key Highlights 2012 – Operational
Key Highlights 2012 – Operational Overall Portfolio occupancy increased to 88.5% from 85% in 2011, with the following notable successes; – At Torun Plaza, Poland, occupancy increased to 84% (2011: 80%) – At Suwalki Plaza, Poland, occupancy increased to 90% (2011: 89%) – At Zgorzelec Plaza, Poland,
Slide 12: Key Highlights 2012 – Operational (cont.)
Key Highlights 2012 – Operational (cont.) In June 2012, EPN Group, Plaza‟s US based joint venture, completed the sale of 47 of its 49 US based assets to BRE DDR Retail Holdings LLC, a joint venture between Blackstone Real Estate and DDR Corp. in a transaction valued at US$1.428 billion. The transa
Slide 13: Markets of Operation - Active shopping and entertainment centres
Markets of Operation - Active shopping and entertainment centres Poland Latvia • Population – 38.4 million •Population – 2.2 million • 2012 Inflation Rate – 3.6% • 2012 Inflation Rate – 2.5% • 2012 GDP per capita –US$ 21,000 • 2012 GDP per capita – US$ 18,100 Operating Malls - 3 Operating Malls - 1
Slide 14: Active shopping and entertainment centres
Active shopping and entertainment centres Liberec Plaza, Czech Republic Riga Plaza, Latvia GLA – 17,000 sqm GLA - 49,000 sqm Occupancy – 80% Occupancy – 94% Zgorzelec Plaza, Poland Suwalki Plaza, Poland GLA – 13,000 sqm GLA - 20,000 sqm Occupancy – 89% Occupancy – 90% 14
Slide 15: Active shopping and entertainment centres
Active shopping and entertainment centres Torun Plaza, Poland Kharadi Plaza (Matrix 1), India GLA - 40,000 sqm GLA - 28,000 sqm Occupancy – 84% Sold – 73% Kragujevac Plaza, Serbia Koregaon Park Plaza (Mall), India GLA - 22,000 sqm GBA - 48,000 sqm Occupancy – 98% Occupancy – 85% 15
Slide 16: Building upon our successful business model
Building upon our successful business model Continue to build on successful track record of developing, letting and selling shopping & entertainment centres in CEE over the last 17 years Geographic expansion beyond CEE is now well advanced through successful and established Indian projects and c
Slide 17: Outlook
Outlook Continued belief in long-term fundamental of CEE – IMF estimates from January 2013 indicate GDP grew by 1.8% in 2012 in CEE region. Contrasted against a -0.4% reduction in the Euro area However, transaction volumes in CEE fell by 35% in 2012 compared to 2011, due to a lack of finance to
Slide 18: Outlook
Outlook Mindful of the impact of the ongoing issues of the Eurozone on the economies in which we operate, Plaza will progress a selected number of projects in the most resilient countries of the CEE, such as Poland and Serbia where GDP growth and forecasts remain above the averages for Europe – Co
Slide 19: Outlook
Outlook “The company will continue to find the optimal blend of reducing our levels of gearing whilst progressing our limited developing programme into the strongest economies of the CEE. Our cautious but opportunistic approach is set to unlock significant value on behalf of our shareholders” 19
Slide 20: Appendix A: Forecasted Cash Flow
Appendix A: Forecasted Cash Flow
Slide 21: Expected cash flow for the coming two years
Expected cash flow for the coming two years 2013 €(m) 2014 €(m) Cash - Opening Balance - Headquarter level(1) 64 55 Sources Proceeds from disposals of trading and 115 58 investment properties Cash flows from operating activities(2) 33 37 Total Sources 212 150 Uses Debentures - principal 99 67 Debent
Slide 22: Expected NOI from properties
Expected NOI from properties 2014 (post anticipated Total related debt at Period 2013 Representing NOI disposals) year end €(m) €(m) €(m) €(m) Operating shopping and 20.1 14.6 27.9 220 entertainment centres Total 20.1 14.6 27.9 220 22
Slide 23: Debt & Liquidity Structure as at 31 December 2012
Debt & Liquidity Structure as at 31 December 2012 Debt structure €(m) Debt Debentures 189(1) CEE – operating malls 189(2) CEE – projects under development and others 33 Bank Loans India 34 Debt related to financial instruments 17 Total Debt 462 Resources Liquid balances – consolidated 64 Financial i
Slide 24: Debentures Repayment Schedule
Debentures Repayment Schedule €(m) Debentures repayment Schedule 120.0 100.0 80.0 60.0 109.7 40.0 72.9 69.4 20.0 9.3 8.9 0.0 2013 2014 2015 2016 2017 (1) Including repayment of principal and interest on Israeli and Polish debentures and also related debt on bond repurchased and net of bonds held by
Slide 25: Appendix B: Current Projects
Appendix B: Current Projects
Slide 26: Portfolio Summary – by Country
Portfolio Summary – by Country Total portfolio of 35 assets in 9 countries 1 Offices Under Development 3 Completed & Active 1 8 7 1 4 6 5 3 1 1 2 2 1 1 1 Romania Poland India Hungary Czech Serbia Bulgaria Greece Latvia Republic 26
Slide 27: Projects overview – Completed Projects
Projects overview – Completed Projects Torun Plaza (Poland) Kragujevac Plaza (Serbia) City: Torun, Poland City: Kragujevac (Serbia) Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 40,000 (GLA) Size: 22,000 (GLA) Plaza Share: 100% Plaza Share: 100%
Slide 28: Projects overview – Completed Projects
Projects overview – Completed Projects Liberec Plaza (Czech Republic) Riga Plaza (Latvia) City: Liberec, Czech Republic City: Riga, Latvia Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 17,000 (GLA) Size: 49,000 (GLA) Plaza Share: 100% Plaza Share:
Slide 29: Projects overview - Poland
Projects overview - Poland Lodz Plaza City: Lodz Type: Shopping & entertainment centre Size: 45,000 (GLA) Plaza Share: 100% Expected Completion Date: 2014 Status: Planning and permits stage Leszno Plaza Kielce Plaza City: Leszno City: Kielce Type: Shopping & entertainment centre
Slide 30: Projects overview – Serbia
Projects overview – Serbia Belgrade Plaza Visnjicka Plaza City: Belgrade City: Belgrade Type: Mixed use (offices, Hotel & retail) Type: Shopping & entertainment centre Size: 70,000 (GBA) Size: 40,000 (GLA) Plaza Share: 100% Plaza Share: 100% Expected Completion Date: 2015 Expecte
Slide 31: Projects overview – India
Projects overview – India Trivandrum Plaza Kharadi Plaza City: Pune City: Trivandrum Type: Office Type: Residential Size: 250,000 (GBA) Size: 120,000 (GBA) Plaza Share: 50% Plaza Share: 50% Expected Completion Date: 2012 - 2015 Status: Planning and permits stage Status: Under C
Slide 32: Projects overview – India
Projects overview – India Bangalore Chennai City: Bangalore City: Chennai Type: Residential Type: Residential Size: 320,000 (GBA) Size: 230,000 (for sale) Plaza Share: 23.75% Plaza Share: 38% Expected Completion Date: 2013-2020 Expected Completion Date: 2013-2018 Status: Planni
Slide 33: Projects overview - Romania
Projects overview - Romania Casa Radio Timisoara Plaza City: Bucharest City: Timisoara Type: Mixed use Type: Shopping & entertainment centre Size: 600,000 (GBA) Size: 38,000 (GLA) Plaza Share: 75% Plaza Share: 100% Expected Completion Date: 2014-2017 Expected Completion Date: 201
Slide 34: Projects overview - Romania
Projects overview - Romania Csiki Plaza Targu Mures Plaza City: Targu Mures City: Miercurea Ciuc Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 30,000 (GLA) Size: 14,000 (GLA) Plaza Share: 100% Plaza Share: 100% Expected Completion Date: 2016 St
Slide 35: Projects overview - Hungary
Projects overview - Hungary Dream Island Arena Extension City: Budapest City: Budapest Type: Business and leisure resort Type: Office Size: 350,000 (GBA) Size: 40,000 (GLA) Plaza Share: 43.5% Plaza Share: 100% Expected Completion Date: 2015-2017 Expected Completion Date: 2015 S
Slide 36: Projects overview – Bulgaria
Projects overview – Bulgaria Shumen Plaza City: Shumen Type: Shopping & entertainment centre Size: 20,000 (GLA) Plaza Share: 100% Expected Completion Date: 2016 Status: Planning and permits stage 36
Slide 37: Projects overview – Greece
Projects overview – Greece Pireas Plaza City: Athens (Greece) Type: Shopping & entertainment centre Size: 26,000 (GLA) Plaza Share: 100% Expected Completion Date: 2015 (subject to availability of external financing) Status: Plannning stage 37
Slide 38: Projects overview – Residential Projects
Projects overview – Residential Projects Roztoky (Czech Republic) Prague 3 (Czech Republic) City: Prague, Czech Republic City: Prague, Czech Republic Type: Residential Type: Residential Size: 14,000 (GBA) Size: 61,600 (GBA) Plaza Share: 100% Plaza Share: 100% Expected Completion Da
Slide 39: Projects overview – Office buildings
Projects overview – Office buildings David House (Hungary) Palazzo Ducale (Romania) City: Budapest, Hungary City: Bucharest, Romania Type: Office Type: Office Size: 2,000 (GLA) Size: 700 (GLA) Plaza Share: 100% Plaza Share: 100% Status: Operating Status: Operating Prague 3 (Czech