51 slides from Qrf Comm. Va's earnings presentation, Mar 1, 2016
Slide 1: Welcome to our FY 2015 Presentation
Welcome to our FY 2015 PRESENTATION
Slide 2: Disclaimer
DISCLAIMER Qrf CVA (hereafter “Qrf”), having its registered office at Leopold de Waelplaats 8/1, 2000 Antwerp, is a public Regulated Real Estate Company, incorporated under Belgian law and listed on Euronext Brussels. This presentation is directed to financial analysts and institutional investors an
Slide 3: Inhoudsopgave
INHOUDSOPGAVE [1] [2] [3] Qrf in a nutshell Inner-city retail Qrf strategy & properties in Belgium portfolio selection [4] [5] [6] Activities & key figures Financial results The share 2015 2015 Qrf www.qrf.be
Slide 4: Qrf in a nutshell
[1] QRF IN A NUTSHELL www.qrf.be
Slide 5: Qrf in a nutshell - Team
QRF IN A NUTSHELL - TEAM Bert Weemaes Anneleen Desmyter Preben Bruggeman COO CEO CFO www.qrf.be
Slide 6: Qrf in a nutshell – Portfolio summary
QRF IN A NUTSHELL – PORTFOLIO SUMMARY 1. Antwerpen 19% 2. Hasselt 17% 3. Leuven 11% 4. Aalst 8% Qrf is a pure player investing in Belgian retail 5. Brussel 4% properties with a focus on inner-city retail. 6. Mechelen 3% 7. Gent 2% 8. Liège 2% 9. Namur 2% Portfolio value of 219 MEUR divided over 42 r
Slide 7: Qrf in a nutshell – Regime and dividend
QRF IN A NUTSHELL – REGIME AND DIVIDEND 1) Max. debt ratio of 65% 2) Pay out ratio of min. 80% of the result Qrf is a public listed B-REIT with a market 3) Strict procedures regarding conflicts of interest capitalization of 121 MEUR (*) 4) Valuation of the portfolio by an independent real estate val
Slide 8: Qrf in a nutshell - Timeline
QRF IN A NUTSHELL - TIMELINE 2013 2015 • Foundation of Qrf • Strengthening equity by 38,1% (from 75,70 MEUR in 2014 to • IPO of Qrf (December 18) 104,54 MEUR in 2015) • Acquisitions in Leuven, Hasselt, Gent, Antwerp, Namur, … Portfolio value of 219 MEUR on Initial portfolio value of 114 MEUR Decembe
Slide 9: Inner city retail properties in Belgium
[2] INNER CITY RETAIL PROPERTIES IN BELGIUM www.qrf.be
Slide 10: Attractiveness of retail
2.1 ATTRACTIVENESS OF RETAIL www.qrf.be
Slide 11: Attractiveness of retail as an investment
ATTRACTIVENESS OF RETAIL AS AN INVESTMENT • Retail real estate is tangible for the investor Transparent market • Active retail investment market (high ratio of buy and sell) • Professional tenants who study the market before joining • Strict building permit regulations – offer and demand of retail r
Slide 12: Investor appetite over important real estate sectors
INVESTOR APPETITE OVER 4 IMPORTANT REAL ESTATE SECTORS Investment volume 2001-2015 in offices, logistics and retail (*) 4.000 2006 MEUR 2007 2015 3.000 MEUR • 2015 was an all time record for the retail 2008 2014 market in terms of capital invested. 2.000 2005 2013 • Retail proofs to be perceived as
Slide 13: Attractiveness of inner-city retail
2.2 ATTRACTIVENESS OF INNER-CITY RETAIL www.qrf.be
Slide 14: Attractiveness of inner-city retail
ATTRACTIVENESS OF INNER-CITY RETAIL Mobility and proximity Economic activity & employment Availability of facilities Social life & diversity Strong demographic growth combined with active city marketing www.qrf.be
Slide 15: Attractiveness of inner-city retail - Demography
ATTRACTIVENESS OF INNER-CITY RETAIL - DEMOGRAPHY Population growth expectations compared to current population (2013-2080) (*) United • City residents almost account for +- 70% of Belgium Germany France Luxemburg Netherlands Kingdom the global population (Benjamin Barber, 160,00% 139,70% 2016) 140,0
Slide 16: Attractiveness of inner-city retail - Experiences
ATTRACTIVENESS OF INNER-CITY RETAIL - EXPERIENCES UNIQUE HISTORY & BRANDING TOURISM & ATTRACTIONS HORECA & EXPERIENCE CITY-EXPERIENCE LUXE & PERSONAL SERVICE ‘CUDDLE STREETS’ & DIVERSITY OF OFFER CHAINS & MASS-MARKET INNER-CITY RETAIL EXPERIENCE www.qrf.be
Slide 17: Shopping behaviour of the consumer
ATTRACTIVENESS OF INNER-CITY RETAIL The consumer in 2030 (*) Efficient / Rational Shopping behaviour of the consumer People HOME as a SHOP RUN SHOPPING People go stay at Outdoors Home FUN @ HOME EXPERIENCE CITY Experience / Emotional Orientation of the consumer (*) Retail City Centre expertgroup, 20
Slide 18: The unique aspect of physical retail
THE UNIQUE ASPECT OF PHYSICAL RETAIL Having an offline presence helps customers to have a deep emotional connection with a brand The logical activity for consumers looking for outdoor experience The natural sustainable solution to store wares and products close to the customer www.qrf.be
Slide 19: The store as a warehouse
THE STORE AS A WAREHOUSE Omni-channel is the future. The store is the new BLACK! Even online players: need for physical stores and delivery points (*) • E-commerce still has to prove its longer term profitability (difficulty of high number of returns). (*) • Delivery, the last meter is the most diff
Slide 20: Attractiveness of the Golden Mile as an investment location
ATTRACTIVENESS OF THE GOLDEN MILE AS AN INVESTMENT LOCATION Must-have locations for retailers High liquidity of properties Defensive play Scarcity effect www.qrf.be
Slide 21: Market dynamics – New retailers & concepts
MARKET DYNAMICS – NEW RETAILERS & CONCEPTS Retailers that entered the Belgian market in 2014-2015 or launched new concepts www.qrf.be
Slide 22: Market dynamics – Retail demand is strong
MARKET DYNAMICS – RETAIL DEMAND IS STRONG Take-up in 2015 – Total retail market (*) # transactions registered in (2011-2015) (**) High street Shopping center Retail warehousing 400.000 m2 191 300.000 m2 205 191 229 184 252 200.000 m2 173 165 147 158 100.000 m2 437 449 375 369 400 0 m2 2007 2014 2014
Slide 23: Attractiveness of inner-city retail in Belgium
2.3 ATTRACTIVENESS OF INNER-CITY RETAIL IN BELGIUM www.qrf.be
Slide 24: Attractiveness of the Belgian market – Economy & tax shift
ATTRACTIVENESS OF THE BELGIAN MARKET – ECONOMY & TAX SHIFT Tax shift impact (2015-2020) (*) Expected consumption expenditure of households (2013-2020) (**) Consumption - GDP (at current prices) In MEUR + 4.8 billion EUR + 3.1 billion EUR 260 000 + 17% Consumption tax 240 000 220 000 Capital tax 200
Slide 25: Qrf strategy & portfolio selection
[3] QRF STRATEGY & PORTFOLIO SELECTION www.qrf.be
Slide 26: Qrf – Investment & diversification strategy
QRF – INVESTMENT & DIVERSIFICATION STRATEGY We invest in prime retail real estate in the ’Golden Mile’ of Belgian cities. Optimal format On top locations Sought-after by investors QUALITY RESILIENT LIQUID • Located in regional and big cities with a catchment areas of > 50,000 consumers • In high str
Slide 27: Selected assets
SELECTED ASSETS Antwerpen – Keyserlei 58-60 Lettable area > 5.000 m2 Tenant(s) Mediamarkt, Mc’Donalds, Versato, Kipling, … Part of portfolio since 2013 Antwerpen - Meir 107 Lettable area > 2.100 m2 (part residential) Tenant(s) PME Legend (Just Brands) Part of portfolio since 2013 www.qrf.be
Slide 28: Selected assets
SELECTED ASSETS Hasselt – Koning Albertstraat 48-50 Lettable area > 9.200 m2 Tenant(s) Galeria Inno, Kruidvat Part of portfolio since 2015 Gent – Lange Munt 61-63 Lettable area > 700 m2 (part residential) Tenant(s) Gerry Weber Part of portfolio since 2015 www.qrf.be
Slide 29: Selected assets
SELECTED ASSETS Liège – Rue de la Cathédrale 87-93 Lettable area > 950 m2 Tenant(s) ICI Paris XL, Gwnio, Maud Soulet, … Part of portfolio since 2013 Namur – Rue de Fer 10 Lettable area > 190 m2 Tenant(s) Armand Thiery Part of portfolio since 2015 www.qrf.be
Slide 30: Selected assets
SELECTED ASSETS Leuven – Bondgenotenlaan 58 Lettable area > 10.000 m2 Tenant(s) Match, Blokker, WE Fashion, … Part of portfolio since 2015 Aalst – Nieuwstraat 29-33 Lettable area > 7.000 m2 + 77 parking lots Tenant(s) H&M, M&S, Kruidvat, … Part of portfolio since 2015 www.qrf.be
Slide 31: Activities and key figures 2015
[4] ACTIVITIES AND KEY FIGURES 2015 www.qrf.be
Slide 32: 2015-2014 Highlight comparison
2015-2014 HIGHLIGHT COMPARISON 2015 2014 80 MEUR PORTFOLIO FAIR VALUE GROWTH 26 MEUR 7 # ACQUIRED RETAIL SITES 7 4.3 MEUR ADDITIONAL YEARLY RENTS 1.6 MEUR 100% GROWTH IN INNER-CITY REAL ESTATE 100% 3 CONTRIBUTIONS IN KIND - 1,210,140 NEW ISSUED SHARES - 29 MEUR INCREASE OF SHAREHOLDERS EQUITY - www.
Slide 33: 2015 Acquisitions
2015 ACQUISITIONS Contractual rents on annual Date of transaction City Street Tenant(s) GLA basis April 21, 2015 Oudenaarde Nederstraat 43-45 Esprit (Jomi BVBA) 1,228 m² 150 KEUR May 27, 2015 Gent Lange Munt 61-63 Gerry Weber 638 m² 132 KEUR June 24, 2015 Namen Rue de Fer 10 Armand Thiery 192 m² 180
Slide 34: Evolution of the fair value
EVOLUTION OF THE FAIR VALUE 250 MEUR 219 MEUR 200 MEUR 150 MEUR 150 MEUR 139 MEUR 129 MEUR 114 MEUR 100 MEUR 50 MEUR 0 MEUR 30/12/2013 30/06/2014 30/12/2014 30/06/2015 30/12/2015 Expected www.qrf.be
Slide 35: Well-spread sector mix
WELL-SPREAD SECTOR MIX 1% 2% 2% Fashion (H&M, Bershka, G-Star,Inno, …) 2% 3% Beautycare (Kruidvat, Hans Anders, ICI PARIS XL …) 3% 3% Sport & Leisure (HEMA, Neckerman, Oxygen, Standaard, ..) 3% Interior & Decoration (Casa, Euro Center, …) Horeca (Panos, Mc'Donalds, …) 3% Car (Citroën) 3% Parking 4%
Slide 36: Well-spread tenant base
WELL-SPREAD TENANT BASE Tenant spread (% Contractual rents on annual basis) Piocheur 2,5% We Belgium Nv 2,6% Apcoa 2,7% Bershka 3,1% Citroën 3,2% Just Brands 3,3% Kruidvat 5,7% H&M 12,2% Inno 12,6% www.qrf.be
Slide 37: Portfolio valuation
PORTFOLIO VALUATION Real estate portfolio (in K EUR) 30.12.2015 30.12.2014 30.12.2013 Fair value of the real estate portfolio 218 874 139 218 114 201 Gross rental surface (in m²) 86 957 58 029 51 730 Contractual rents on an annual basis (including rental guarantees 12 910 8 638 7 097 on vacant prope
Slide 38: Financial results 2015
[5] FINANCIAL RESULTS 2015 www.qrf.be
Slide 39: Consolidated income statement
CONSOLIDATED INCOME STATEMENT P&L (in K EUR) 30.12.2015 30.12.2014 ∆ diff. Net rental income 9 305 8 131 + 14,4% Property result 9 394 8 059 (-) Property costs -742 -382 (-) General costs and other operating income and costs -1 543 -1 318 Operating result before result on the portfolio 7 109 6 359 +
Slide 40: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET Balance sheet (in K EUR) 30.12.2015 30.12.2014 ∆ diff Non-current assets 218 874 139 265 Intangible assets 0 4 Investment properties 218 844 139 218 + 57,2% Other non-current assets 31 43 Current assets 4 521 4 682 Trade receivables 583 1 015 Tax receivables and other curr
Slide 41: Financial structure
FINANCIAL STRUCTURE Debt maturities Comments 30,0 25,0 • Financial debt amounts to 106 MEUR 20,0 15,0 • Weighted average remaining duration of drawn credit lines of 25 3,9yr 10,0 20 15 15 5,0 9 10 10 10 • Debt is provided by 4 financial institutions 0,0 0,0 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 42: The share Qrf
[6] THE SHARE QRF (ISIN - BE0974272040 | QRF:BB) www.qrf.be
Slide 43: Evolution of stock price and NAV
EVOLUTION OF STOCK PRICE AND NAV (in EUR) (in KEUR) 30,0 2 000 29,0 1 800 28,0 1 600 27,0 1 400 26,0 1 200 25,0 1 000 24,0 800 23,0 600 22,0 400 21,0 200 20,0 0 Daily volume Stock Price NAV per share (IFRS) www.qrf.be
Slide 44: Financial structure
FINANCIAL STRUCTURE Key data per share Per share data 30.12.2015 30.12.2014 (in EUR) Total number of shares outstanding 4 483 051 3 272 911 Closing price 26,93 25,90 Market capitalisation 120 706 148 84 768 395 NAV (IFRS) 23,32 23,13 Premium to NAV (IFRS) 15,5% 12,0% NAV (EPRA) 23,81 23,66 Premium t
Slide 45: Conclusion
CONCLUSION www.qrf.be
Slide 46: Reasons why Qrf is a solid investment
5 REASONS WHY QRF IS A SOLID INVESTMENT 1 Focus on Golden Mile 5 Dividend level 2 Diversification in regional and main cities in Belgium 4 Further growth by acquisitions 3 Straight-forward operating www.qrf.be
Slide 47: Attachments
ATTACHMENTS www.qrf.be
Slide 48: Financial calendar
FINANCIAL CALENDAR Unless stated otherwise: publications are after close of trading April 15, 2016 Annual report 2015 May 9, 2016 Update Q1 2016 May 17, 2016 at 2.00 p.m. General Meeting of Shareholders May 19, 2016 Ex-dividend date May 20, 2016 Record date May 23, 2016 Payment date August 19, 2016
Slide 49: Corporate governance
CORPORATE GOVERNANCE Adherence to strict corporate governance standards Shareholders The board of directors of the statutory manager manages the Belgian REIT in developing its strategy and addressing key decisions Quares REIM Retail NV1 QRF Comm. VA4 Management executes the strategy and steers the d
Slide 50: Board of Directors – Independent directors
BOARD OF DIRECTORS – INDEPENDENT DIRECTORS INGE JAN FRANK BOETS BROUWERS DE MOOR CHAIRMAN • Former Partner at Ernst & Young & leader of the Ernst • Former Managing Director with Morgan Stanley in • CEO of Q-Park & Young Global Risk Practice. London, Portfolio Manager at Blue Crest Capital. • Member
Slide 51: Board of Directors – Quares directors
BOARD OF DIRECTORS – QUARES DIRECTORS ANNELEEN HERMAN FREDDY DESMYTER DU BOIS HOORENS CEO • Founding Partner of Quares. Founder of CC Company, • Founding Partner of Quares. Previously Founder • Founding Partner of Quares. Founder of SPM (Quares Residential Agency). APM NV, (Quares Property Managemen