Wereldhave N.v. · EURONEXT:WHA

Wereldhave — Merger or Acquisition (June 2015)

39 slides from Wereldhave's merger presentation, June 2015

  1. Slide 1: Achieving Market Leadership in the Netherlands

    Achieving Market Leadership in the Netherlands Acquisition of Nine Shopping Centres for €730 million Schiphol June 2015

  2. Slide 2: Disclaimer

    Disclaimer This presentation is not for release, publication or distribution (in whole or in part) in, into or from the United States, Australia, Canada, Japan or any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. This presentation has been prepar

  3. Slide 3: Strategic acquisition with value enhancing potential

    Strategic acquisition with value enhancing potential Acquisition of 9 Dutch shopping centres and 1 development project from Klépierre for €730m1  6.2% net initial yield2 providing headroom for value-enhancing opportunities  2.8% discount to CBRE valuation of €751m as of 15-May-2015 Opportune time

  4. Slide 4: Key terms of the transaction

    Key terms of the transaction Acquisition  Purchase price of €730m, consisting of €687m for operational properties and €43m for the development  Total acquisition cost of €774m including RETT  NRI for operational properties of €45.0m1  Net initial yield for operational properties of 6.2%2 Organis

  5. Slide 5: Key terms of the equity offering

    Key terms of the equity offering  Issuer Wereldhave N.V.  Ticker AMS: WHA  Type of offering 100% primary  Size Up to 5,250,000 shares (Up to 15.0% of current outstanding shares)  Use of proceeds Partially finance acquisition of 9 Dutch shopping centres and 1 development project  Bookrunners Go

  6. Slide 6: Agenda

    Agenda  Update on Management Agenda 2015  Transaction Rationale  Portfolio Overview  Value Creation Opportunities  Financials  Summary 6

  7. Slide 7: Update on Management Agenda 2015

    Update on Management Agenda 2015 Sterrenburg – Dordrecht 7

  8. Slide 8: Management agenda 2015

    Management agenda 2015 We are well on track towards realising our 2015 management agenda Management agenda Current status  Execute integration plan in France  Organisation in place (1 July 2015)  Completed, including hiring of MD France  Stabilising NRI French retail portfolio at €46m  Confirme

  9. Slide 9: Becoming the leading specialist in dominant mid-sized shopping centres

    Becoming the leading specialist in dominant mid-sized shopping centres Portfolio focus  North-Western Continental Europe  Dominant mid-sized shopping centres in larger provincial cities (>100,000 inhabitants) Solid financials Active portfolio management  Conservative LTV of 35% - 40%  Selective

  10. Slide 10: Transaction Rationale

    Transaction Rationale Cityplaza – Nieuwegein 10

  11. Slide 11: Transaction rationale

    Transaction rationale The acquisition provides a unique opportunity to further strengthen our Dutch platform Unique opportunity to acquire an attractive shopping centre portfolio of scale in the Netherlands  Assets being acquired on an off-market basis  Large portfolio transactions rare in the Dut

  12. Slide 12: Netherlands becomes our largest core market

    Netherlands becomes our largest core market Q1 2015 Post Acquisition 19% 22% 19% 25% 11% 15% 36% 15% 21% 9% Finland Netherlands Belgium France Paris 10 + 9 shopping centres 1 shopping centre 8 shopping centres 6 shopping centres 20,504 + 24,541 = 3 office buildings NLA: 104,000 m2 Average NLA: 16,32

  13. Slide 13: Dutch macro fundamentals on the upturn

    Dutch macro fundamentals on the upturn GDP growth (%) Unemployment rate (%) 3.0 % NL Euro Area 15.0 % NL Euro Area 2.0 % 12.0 % 1.0 % 9.0 % 0.0 % 6.0 % (1.0)% 3.0 % (2.0)% 0.0 % 2011 2012 2013 2014E 2015E 2016E 2011 2012 2013 2014E 2015E 2016E Consumer confidence indicator Retail trade confidence in

  14. Slide 14: Dutch retail real estate market bottoming out

    Dutch retail real estate market bottoming out Retail real estate fundamentals tend to lag macro drivers, presenting an attractive investment proposition Prime shopping centre (SC) yields (%) Prime SC yields vs. 10-year Gov’t bond yields (%) 8.00 Amsterdam 4.5 % 7.50 7.00 Milan 4.4 % 6.50 6.00 Munich

  15. Slide 15: Portfolio matches our acquisition criteria

    Portfolio matches our acquisition criteria Target shopping Portfolio lies within our target area... ...and meets our acquisition criteria centres (#)  90% of shopping needs  Top-of-mind in catchment area  >100,000 inhabitants in 10 minutes drive  Easy accessibility  Strong (inter)national brand

  16. Slide 16: Complementary with our existing Dutch portfolio

    Complementary with our existing Dutch portfolio Owned leasable area per shopping centre (m2) 69,600 Existing Wereldhave portfolio Target portfolio 57,300 39,691 36,600 37,832 35,715 35,479 34,412 32,300 25,103 22,146 19,841 19,381 19,326 17,857 16,800 14,638 12,929 11,991 11,489 10,145 4,537 Citypla

  17. Slide 17: Portfolio Overview

    Portfolio Overview Middenwaard – Heerhugowaard 17

  18. Slide 18: The target assets

    The target assets Dominant shopping centres in larger provincial cities 1 Cityplaza1 2 Middenwaard 3 City Centre Tilburg Nieuwegein Heerhugowaard Tilburg Occ: 95%, GLA: 39,691m2 Occ: 94%, GLA: 35,715m2 Occ: 95%, GLA: 34,412m2 2 4 In de Bogaard2 5 Emiclaer 6 Presikhaaf 9 5 1 4 8 6 Rijswijk Amersfoort

  19. Slide 19: Key portfolio metrics

    Key portfolio metrics Number of assets 9 Tilburg Total Q1 2015 annualised NRI: €45.0m Total GLA (‘000m2) 258 €10.7m Average GLA (‘000m2) 29 €8.5m €6.4m €4.4m €4.2m €3.5m €2.6m €2.6m €2.0m Owned GLA (‘000m2) 221 Average owned GLA (‘000m2) 25 Weighted average occupancy: 94% Q1 2015 Annualised NRI (€m)

  20. Slide 20: Tenant and lease profile

    Tenant and lease profile The target portfolio has a well-diversified tenant base and staggered lease maturity profile Top 10 tenants based on annual rent Lease expiration schedule 19 % €m % 2.9 5.7 % 2.5 5.0 % 15 % 14 % 2.1 4.2 % 14 % 13 % 2.0 3.9 % 1.5 2.9 % 10 % 9% 1.4 2.8 % 6% 1.1 2.2 % 1.1 2.1 %

  21. Slide 21: Value Creation Opportunities

    Value Creation Opportunities In de Bogaard – Rijswijk 21

  22. Slide 22: Proven track record in the Netherlands

    Proven track record in the Netherlands Wereldhave has a proven track record of operational excellence in the Netherlands Like-for-like rental growth vs. indexation¹ Stable occupancy rates vs. market2 98.0% 97.7% 3.6 % 3.7 % 97.1% 97.0% 96.8% 96.5% 95.6% 2.4 % 2.4 % 94.5% 93.4% 1.8 % 1.7 % 92.1% 1.2

  23. Slide 23: Creating value through our operational expertise

    Creating value through our operational expertise Bottom up business plans per asset are in place and ready for execution  Focus on occupancy improvement leveraging our key tenant Particular relationships Leasing & focus on 6 re-tenanting  Increase number of units let to retail chains to > 75% cent

  24. Slide 24: Significant NRI growth potential

    Significant NRI growth potential Upside potential if the acquisition portfolio performance is brought in line with our existing Dutch portfolio Areas of focus Targeted goals / drivers  Limited indexation of max 1% p.a. Indexation  Average indexation in the Netherlands over the past 5 years has bee

  25. Slide 25: Driving occupancy through key account management

    Driving occupancy through key account management Leveraging our key account relationships and retailer-oriented approach to real estate Occupancy Top 5 key accounts Wereldhave Presikhaaf 86.0% 5.7% 7/9 8.6% Middenwaard 93.6% Sterrenburg 94.0% 5.0% 9/9 6.8% Cityplaza 94.7% 1.1% City Centre Tilburg 94

  26. Slide 26: Asset by asset business plans ready for execution

    Asset by asset business plans ready for execution Leasing & re-tenanting Shopping centre management Middenwaard Occupancy 93.6% Emiclaer Current GLA: 19,326m2 Objective: improve occupancy to 97% Objective: optimise shopping centre management  Increase percentage of units let to retail chains  Opti

  27. Slide 27: Asset by asset business plans ready for execution

    Asset by asset business plans ready for execution Asset rotation (Re)development Stadshagen 4% of NRI1 Presikhaaf Last renovation 1987 Objective: maximise value within holding period Objective: full renovation and repositioning  Extend leases and optimise tenant mix  Large scale refurbishment  Ad

  28. Slide 28: Redevelop Presikhaaf using experience gained in Kronenburg

    Redevelop Presikhaaf using experience gained in Kronenburg Distinguished offer in Arnhem KPIs Kronenburg 2012 - 2014 Occupancy 99.0% 98.0% Presikhaaf 96.0% Kronenburg L-f-L NRI growth 10.4% 4.9% 2.0% Kronenburg Presikhaaf  Positioning towards  Positioning towards Footfall (m) mid segment value-for

  29. Slide 29: From a cluster of stores towards a highly attractive centre

    From a cluster of stores towards a highly attractive centre integrated in its catchment area Redevelopment of Kronenburg  Create central area with F&B  New floors, store fronts and lighting  Renovate squares OLD NEW  Add food street with fresh grocery  Enhance quality and variety of offer OLD N

  30. Slide 30: Financials

    Financials City Centre Tilburg – Tilburg 30

  31. Slide 31: Financial impact of the acquisition

    Financial impact of the acquisition Wereldhave Acquisition Combined 31-Mar-2015 31-Mar-2015 31-Mar-2015 Investment properties (€m) 3,306 7511 4,057 Interest bearing debt (€m) 1,373 5102 1,882 Net LTV3 (%) 35.5 66.6 41.5 Shopping centres (#) 25 9 34 Offices (#) 7 - 7 Owned leasable area (m2) 773,245

  32. Slide 32: Key acquisition and financing terms

    Key acquisition and financing terms Acquisition terms Financing terms  €730m purchase price excluding RETT  Up to 5,250,000 shares to be issued through an Accelerated Bookbuild Offering  €687m for operational properties and €43m for the Cityplaza II development  Gross proceeds of up to c.€274m b

  33. Slide 33: Debt profile post-acquisition

    Debt profile post-acquisition Key parameters Post-acquisition Q1-15  c.€500m of debt drawn on existing debt facilities to finance Interest bearing debt €1,988 €1,378 acquisition in the short term Average cost of debt 2.3% 2.2%  All newly drawn debt at variable interest rates Borrowing capacity €13

  34. Slide 34: Guidance

    Guidance We reaffirm our guidance for our existing business  Compounded average growth of direct result per share1 from 2014 to 2016 of between 6%-9%  Growing dividend; pay-out ratio between 85% and 90% The acquisition is expected to be accretive to Wereldhave’s EPS in the first full year (2016) L

  35. Slide 35: Summary

    Summary Presikhaaf – Arnhem 35

  36. Slide 36: Summary

    Summary  Market leader in mid-sized shopping centres in the Netherlands  Ability to leverage our proven operational expertise  Opportune time to buy in the Dutch retail market  Acquisition expected to be accretive to first full year EPS  Target cash flows support attractive dividend yield of 5.

  37. Slide 37: Contact details

    Contact details Press: Investors & analysts:  Richard Beentjes  Jaap-Jan Fit  Richard.beentjes@wereldhave.com  Jaapjan.fit@wereldhave.com  T +31 20 702 78 34  T +31 20 702 78 43  Investor.relations@wereldhave.com  www.wereldhave.com 37

  38. Slide 38: Appendix

    Appendix Emiclaer – Amersfoort 38

  39. Slide 39: The target portfolio

    The target portfolio Occupancy Q1 2015 Name City Owned GLA (m2) (31-Mar-2015) Annualised NRI 2014 Footfall 1 Nieuwegein 39,691 95% €10.7m 5.8m Point 2 Heerhugowaard 35,715 94% €8.5m 5.8m Point 3 Tilburg 34,412 95% €6.4m 5.7m Point 4 Rijswijk 19,841² 95% €4.4m 2.9m Point 5 Amersfoort 19,326 97% €4.2m

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