Trade Estates Real Estate Investment Company · ATHEX:TRESTATES
Trade Estates Real Estate Investment — Trade Estates REIC — Investor Presentation (October 2023)
21 slides from Trade Estates Real Estate Investment's investor presentation, October 2023
Slide 1: Trade Estates REIC Corporate Presentation
Trade Estates REIC Corporate Presentation October 2023
Slide 2: Disclaimer
Disclaimer Important Notice and Disclaimer of Liability THIS DOCUMENT MAY ONLY BE USED IN CONJUNCTION WITH AND SUBJECT TO THE TERMS OF THIS NOTICE THE INFORMATION MATERIAL CONTAINED IN THIS DOCUMENT IS NOT ADDRESSED TO OR INTENDED TO BE MADE AVAILABLE TO PERSONS IN THE UNITED STATES, OR PERSONS RESI
Slide 3: Table of Contents
Table of Contents 01 Trade Estates REIC Overview 02 Key Investment Highlights 03 Pipeline 04 Financials and Shareholding structure 05 Governance and Regulatory Framework 2
Slide 4: Trade Estates at a glance
Trade Estates REIC at a glance Business Overview Key Figures, 30.06.2023 Trade Estates REIC (the “Company”) is a REIC, €10.7 mn Rental Income 12 Income Producing licensed by the HCMC under the provisions of Law for H1 2023 Properties 2778/1999 and Law 4209/2013 in 2019 €22.5 mn Annualized 1
Slide 5: Recent Investment (Smart Park)
Recent Investment (Smart Park) Smart Park Retail - Park in Spata, Attiki • On October 10, 2023 Trade Estates REIC signed an SPA for the acquisition of 100% of the retail park “Smart Park” from R.E.D.S. SA. – Transaction closing is subject to customary CPs and expected by December 2023. • The first a
Slide 6: Key Investment Highlights
Table of Contents 01 Trade Estates REIC Overview 02 Key Investment Highlights 03 Pipeline 04 Financials and Shareholding structure 05 Governance and Regulatory Framework 5
Slide 7: Key Investment Highlights
Key Investment Highlights The only sector-oriented REIC focused in Retail Parks & Omni-Channel Logistics operating in 1 Greece, Bulgaria and Cyprus, holding a high-quality, high-yielding and downcycle resilient (necessity retail) portfolio 2 Predictable cash flows driven by high occupancy levels
Slide 8: The only sector-oriented REIC focused in Retail Parks & Omni-Channel Logistics
1 The only sector-oriented REIC focused in Retail Parks & Omni-Channel Logistics operating in Greece, Bulgaria and Cyprus The Company recognized early the deficit between Greece vs. European market in terms of number of retail parks as per each country’s population, trends in consumer behavior requi
Slide 9: Predictable cash flows driven by high occupancy levels, strong tenant base
2 Predictable cash flows driven by high occupancy levels, strong tenant base and long-term inflation-adjusted leases Existing long term & inflation protected contracts with IKEA and other 3A tenants, offering sizeable and predictable cash flows Lease profile(1) Tenant Mix Trade logistics 68,3% 12% I
Slide 10: High-quality and high-yielding portfolio
2 High-quality and high-yielding portfolio Existing Portfolio (30.06.2023) GAV Breakdown Anchor domestic and international tenants Per Country Bulgaria 15% Cyprus 10% Greece 75% Per Asset Class Logistics 15% Retail Parks 85% Data as of 30.06.2023 1. Slight discrepancies are due to rounding 9
Slide 11: Assets in strategic locations
2 Assets in strategic locations Sofia, Bulgaria – 1 Retail Park Thessaloniki, Greece – 2 Retail Parks Greece & Bulgaria GLA (k sqm) 20.3 GLA (k sqm) 55.4 Appraised Value (€m) 47.4 Appraised Value (€m) 106.5 Appraised Value (%) 14.4% Appraised Value (%) 32.3% 1 Annualized Rent (€m) 3.6 Annualized Ren
Slide 12: Pipeline
Table of Contents 01 Trade Estates REIC Overview 02 Key Investment Highlights 03 Pipeline 04 Financials and Shareholding structure 05 Governance and Regulatory Framework 11
Slide 13: Significant upside from an agreed pipeline of c.€180mn
3 Significant upside from an agreed pipeline of c.€180mn, which will be realized in the near term Shareholders’ Return Drivers Targeted amounts of investment and low level of risk on each project NAV Growth 1 2 3 • 4 secured/ under Other identified Rental Growth & Focus on Retail Parks and Logistics
Slide 14: Overview of Agreed Pipeline
3 Overview of Agreed Pipeline Total GLA Expected # Type Entity Participation Τenant Mix Cost Status (‘000 sqm) Completion Date (€mn) Housemarket (42%), Signed/Under 1 Retail Park in Patra POLIKENCO 100% c.17.1 Q4 2024 c.26.9 Third parties (58%) Development 50% Retail Park in Housemarket (65%), Signe
Slide 15: Financials and Shareholding structure
Table of Contents 01 Trade Estates REIC Overview 02 Key Investment Highlights 03 Pipeline 04 Financials and Shareholding structure 05 Governance and Regulatory Framework 14
Slide 16: Healthy financials and conservative capital structure (1/2)
4 Healthy financials and conservative capital structure (1/2) Rental Income, Adj. EBITDA & FFO Gross Asset Value (GAV) NAV & NAV per share Amounts in €’000 Amounts in €’000 Amounts in €’000 €2,49 18.891 329.900 €2,43 €2,13 288.762 14.758 225.014 210.894 209.551 184.853 10.774 9.873 8.817 8.649 6.648
Slide 17: Healthy financials and conservative capital structure (2/2)
4 Healthy financials and conservative capital structure (2/2) The Group continuously manages its balance sheet in order to ensure and maintain strong credit metrics and healthy capital ratios to finance its pipeline and maximize the shareholders returns Total Debt & Net Debt LTV1 Gearing Ratio (Net
Slide 18: Backed by Fourlis Group and Autohellas
4 Backed by Fourlis Group and Autohellas, leading players, each in their own sector, in Greece and the Balkans Trade Estates REIC Shareholding Structure Autohellas • On July-2022, Fourlis and AUTOHELLAS S.A. announced jointly the signing of an agreement 11,92% for the sale of shares of Trade Estates
Slide 19: Governance and Regulatory Framework
Table of Contents 01 Trade Estates REIC Overview 02 Key Investment Highlights 03 Pipeline 04 Financials and Shareholding structure 05 Governance and Regulatory Framework 18
Slide 20: Managed by a highly experienced team with best-practice governance
5 Managed by a highly experienced team, having adopted corporate governance principles tailored to best practices Current Composition Responsibilities Consists of 9 members: • V. Fourlis – Chairman, Executive Member • G. Alevizos – Vice Chairman, Executive Member • C. Aesopos – Independent Vice Chai
Slide 21: Specific Regulatory Framework and Favorable Tax regime for REICs
5 Specific Regulatory Framework and Favorable Tax regime for REICs Tax Structure Key REIC Requirements REIC Corporate • Investments and liquid assets taxed at • At least 80% of the assets must be invested in 10%*(ECB rate + 1%) (the floor of 0.75%p.a. Income Tax was abolished in December 2019) real
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