Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — FY2018 Earnings Presentation
54 slides from Nextensa's earnings presentation, Feb 21, 2019
Slide 1: Leasinvest Real Estate: Year results 2018
Leasinvest Real Estate Investing in opportunities Year results 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Forward looking statements Leasinvest Real Estate SCA, a Belgian public real estate investment company (“Leasinvest” or the “Company”), solely for your information This Presentation includes forward-looking statements that reflect t
Slide 3: Table of contents
Table of contents 1. Activity overview p. 4 2. Portfolio overview p. 30 3. Highlights FY 2018 p. 39 4. Financials & outlook p. 42 5. LRE share p. 51 Appendices p. 55
Slide 4: Activity overview
01/ Activity overview
Slide 5: Capital increase
• In the course of September/October 2018 Leasinvest launched a capital increase of € 84 million. This was fully subscribed and led to an increase of the number of shares from 4,938,870 before the capital increase to 5,926,644 after the transaction. Capital • In the meantime, the proceeds were alrea
Slide 6: Acquisitions
Acquisition EBBC A&C Acquisitions Participation in capital increase of Retail Estates Acquisition Hangar 26/27 FY 2018 | Leasinvest 6 Leasinvest.be Acquisition Montoyer 14
Slide 7: Acquisition Montoyer 14 (BE)
Acquisition Montoyer 14 (BE) Montoyer 14 (BE) Montoyer 63 (BE) 7 Square de Meeüs 5-6(BE)
Slide 8: Acquisition Montoyer 14 in the European Quarter
Office building of 4,000 m² to redevelop ERV of € 1.2 m Acquisition Montoyer 14 Investment Price: in the European Quarter € 23.5 m Design: Archi2000 Architects First higher (Brussels) wooden construction Study + C02 neutral Building Permit: passive building 14 months Expected Delivery: Rent Price Br
Slide 9: Acquisition EBBC (LU) Buildings A & C
Acquisition EBBC (LU) Buildings A & C 9
Slide 10: Business park ~27,000 m² Rebranding
Business park ~ 27,000 m² Build a stronger business community with advanced services to occupants (restauration, kinder garden + add fitness, co-working, etc.) & shared IT services, Aim is to control the total business park to start with dynamic asset management Investment Price: benefit from new Re
Slide 11: Acquisition Hangar 26/27 (BE)
Acquisition Hangar 26/27 (BE) 11
Slide 12: Hangar 26/27 renovation ongoing
Retail and offices Possibility to double the 8,500 m² current area, to +/- 17,000 m2 offices and mixed functions Making a landmark of Antwerp, delivery in 2 years Investment Price: € 23 m Actual BREEAM in use: good 12 Renovation ongoing new façade by Q4 2019
Slide 13: Retail Estates (BE)
Retail Estates (BE) Leasinvest (LRE) holds 10.47% share in BE-REIT Retail Estates (€ 92 m at 31/12/2018) Subscription of capital increase for € 12.9 m in April 2018 (198,736 new shares) Real estate portfolio of € 1.5 bn (31/12/2018) Focus = clusters & retail parks (81% of total portfolio) Portfolio
Slide 14: Developments
Boomerang Montoyer 63 Developments Treesquare Knauf Schmiede FY 2018 | Leasinvest 14 Leasinvest.be Knauf Pommerloch De Mot
Slide 15: Delivery Treesquare (BE)
15), Delivery Treesquare (BE)
Slide 16: Redevelopment Treesquare (BE) ~6,500 m²
Redevelopment Heart of Europe Treesquare (BE) in Brussels District High end occupants as Office building of Deutsche Börse, Boeing, RWE, ~ 6,500 m² Embassy of Monaco, Norton Rose, Friends of Europe, Netflix with high end materials ERV of € 1.8 m of which € 1.3 m secured at delivery 64% was pre-let 8
Slide 17: Delivery Montoyer 63 (BE)
Delivery Montoyer 63 (BE) 21y usufruct EP 17
Slide 18: Montoyer 63 tailor-made for European Parliament
objective is Constructed tailor-made BREEAM “Excellent” for European Parliament (2018), to be to realize training center confirmed after at walking distance of completion in 2019 of fitting out work Parliament by tenant European Parliament BREEAM interim currently conducts fitting ‘design stage’ wit
Slide 19: Redevelopment Motstraat 30/32 (BE)
Redevelopment Motstraat 30/32 (BE) 19
Slide 20: Motstraat 30/32 occupancy
Office building of 14,174 m² Occupancy stands at > 92% Part of the remaining office space is installed as co-working space ‘De Mot’ based on our business center concept ‘The Crescent’ in Anderlecht and Ghent – concept is much appreciated by tenants & other users Sitting tenant Wolters Kluwer renewed
Slide 21: Redevelopment Knauf shopping center Schmiede (LU)
Redevelopment Knauf shopping center Schmiede (LU) 21
Slide 22: Strengthening position as largest shopping center in North of Luxembourg
Strengthening position as largest shopping center in the Extension of North of Luxembourg ~ 8,000 m² Foreseen Capex: Revamping of the € 30 m shopping center in order to meet consumers’ expectations Reception started in Q3 2021 September FY 2018 | Leasinvest 22 Leasinvest.be Phased renovation
Slide 23: Largest H&M store in North of Luxembourg & largest Delhaize
Parking entrances renovated largest H&M store in North of Luxembourg & largest Delhaize supermarket in Belux More restaurants (food court), shops and events for creating unique experiences (kids area) Highest restaurant in Luxembourg FY 2018 | Leasinvest 23 Leasinvest.be
Slide 24: Redevelopment Knauf shopping center Pommerloch (LU)
Redevelopment Knauf shopping center Pommerloch (LU) 24
Slide 25: Pommerloch: more parking space needed
Traffic More parking space needed to respond to growing number of visitors 838 m² commercial space on level 1 838 m2 office space 420 extra parking on level 2 spaces of which 190 covered Level 1 Level 2 FY 2018 | Leasinvest 25 Leasinvest.be
Slide 26: Redevelopment Boomerang shopping center Strassen (LU)
Redevelopment Boomerang shopping center Strassen (LU) 26
Slide 27: Boomerang: largest retail park in Luxembourg periphery
~ 22,721 m² largest retail park in the Luxembourg periphery at Route d’Arlon, entrance to the city of Luxembourg Renovation of parking and the office space (470 m2) finalized Office space is occupied by different tenants 2021: departure of Bâtiself (March) Publication of a masterplan by the municipa
Slide 28: Frun Park Asten (AT)
Frun Park Asten (AT) 28
Slide 29: Frun Park Asten
Extension finalized Retail concept: and entirely let construction of a harmonious architectural ensemble surrounding a large, central, free parking 100% 2018: area, and uniting a mix 4% increase of national and in footfall international brands occupancy Frun Park Footfall Asten (AT) 120 000 100 000
Slide 30: Leases
Riverside BP: a couple of important new rental contracts, resulting in higher occupancy rate CFM Cloche d’Or: Mazars Frun® Park Asten: 100% Luxembourg SA for a fixed occupancy (extension & 9-year term, starting on 1 May renewals) 2019 – 2,200 + 350 m2 Tour & Taxis Royal Depot: Renovation works façad
Slide 31: Portfolio overview
02/ Portfolio overview Knauf Shopping Center Schmiede (LU)
Slide 32: Portfolio overview: two segments in three countries
Portfolio overview 01 Focused on two segments in three countries Portfolio split – Fair value Portfolio split – Net income 31/12/2018 31/12/2018 AT Logistics AT Logistics 10% 6% 10% 8% Offices 40% LU Offices BE € 1 bn 55% € 1 bn 51% € 56 m LU € 56 m 35% BE 57% Retail 33% 43% Retail 52% Excluding sta
Slide 33: Portfolio overview: market segments and geographical diversification
Portfolio overview 02 A unique combination of market segments and geographical diversification LU BE AT FV | € 569.5 m FV | € 361.1 m FV | € 106.5 m Yield | 6.78% Yield | 6.25% Yield | 5.40% 350,00 Retail Offices Offices 300,00 292.5 256.9 300,00 268.5 250,00 250,00 including for sale 200,00 200,00
Slide 34: Portfolio overview: long term growth through focused approach
Portfolio overview 03 Demonstrating long term growth through a focused approach Evolution of portfolio fair value per country Evolution of split in market segments including stake in Retail Estates Focus on three countries Focus on two asset classes • i.e. Luxembourg – Belgium – Austria • i.e. retai
Slide 35: Portfolio overview: occupancy rates and lease duration
Portfolio overview 04 On the back of solid occupancy rates Occupancy rates per 31 December Duration leases till first break per 31 December Luxembourg Luxembourg Belgium Belgium Austria Austria Total 2018 Q1 2018 Total 2017 Total 2017 Luxembourg Luxembourg Belgium Belgium Austria Austria Total Q1 20
Slide 36: Leasinvest's markets: Office Market
Belgium Take-up Brussels (-8% YoY) Leasinvest’s Co-working takes up to 20% of total markets Prime rent CBD: 315€/m2/yr (Treesquare at € 330/m2/yr) Office Market Investments: € 1.9 bn, best > 2007 (2018) Prime yield: 4.25% (LT 3.65%) Luxembourg Vacancy rate < 3.5% of which CBD almost inexistent take-
Slide 37: Leasinvest's markets: Retail Market
Leasinvest’s markets Retail Market (2018) Luxembourg Austria Rental market: take-up 37,650 m2, Vienna named best city > annual average 5-year period to live in 2018 - one of the 2013-2017 world’s most popular expansion targets Shopping centres: 147% above 5- year average Investment market over 1.2 b
Slide 38: Leasinvest's markets: Luxembourg
Luxembourg is a key intermediary of global capital flow with more than 4 .16 tn of assets under management Luxembourg has been an employment magnet for neighboring countries and beyond Economic performance has remained strong in 2018, with a GDP growth of 3.6%, with 4.0% forecasted for 2019 The exte
Slide 39: Leasinvest's markets: Austria
Vienna is While demand for retail properties remains high, supply is limited, the best weighting on yields. place to live The production of new space for retail worldwide parks and shopping centres has Leasinvest’s basically come to a standstill. Most of the attractive development markets locations
Slide 40: Highlights FY 2018
Treesquare (BE) 03/ Highlights FY 2018
Slide 41: Highlights FY 2018
EPRA earnings increase by 14% to ~ € 31.3 m from ~ € 27.5 m (2017) Net result € 38.2 m (€ 7.37/share) vs € 47.6 m Dividend proposal +2% (2017, € 9.63/share) Highlights € 5.10/share FY 2018 Debt ratio at EPRA earnings Weighted average 53.53% increase by lease 5.3% toof€ term 14.0 M 4.34 years from €
Slide 42: Dividend evolution
Long term EPS & Gross DPS evolution 6,5 Dividend evolution 6,0 5,5 5,0 4,5 Gross dividend 2018 increased +2% 4,0 to € 5.10 over 2018 (2017: € 5.00) 3,5 Net dividend 2017 amounts to € 3.57 (excl. 30% 3,0 2014 2010 2012 2013 2015 2016 2017 2018 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 WH
Slide 43: Financials & outlook
04/ Financials & outlook
Slide 44: Key consolidated financials
Key figures balance sheet 31/12/2018 31/12/2017 Net asset value group share (€ 1,000) 475 811 382 206 Weighted average number of shares after capital increase on 04/10/2018 5 179 724 4 938 870 Net asset value group share per share 80.3 77.4 Net asset value group share per share based on investment v
Slide 45: EPRA KPIs
EPRA performance measures 31/12/2018 31/12/2017 EPRA Earnings* (in € per share) (1) 6.03 5.57 EPRA NAV* (in € per share) (2) 88.69 83.99 EPRA NNNAV* (in € per share) (3) 82.27 77.14 EPRA Net Initial Yield* (in %) (4) 5.25% 5.22% EPRA KPIs EPRA Topped up Net Initial Yield* (in %) (5) EPRA Vacancy* (i
Slide 46: Consolidated income statement
Consolidated income statement Sixth year in a row FY 2018 | Leasinvest 46 Leasinvest.be
Slide 47: Consolidated balance sheet
ASSETS (in 1,000 euro) 31/12/2018 31/12/2017 I. NON-CURRENT ASSETS 1 116 270 979 104 Intangible assets 0 2 Investment properties 1 004 237 885 151 Other tangible assets 1 263 354 Non-current financial assets 92 974 75 757 Finance lease receivables 17 796 17 841 II. CURRENT ASSETS 39 837 20 188 Asset
Slide 48: Funding
Rental yield vs funding cost Funding 8% 7% 6% Funding 5% diversification 4% 3% Cost of debt: decrease 2% from 2.99% (2017) 1% to 2.59% (2018) 0% 28% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total committed lines 56% (incl. bonds) of € 651.5 m Rental yield Funding cost Duratio
Slide 49: Hedging
Hedging Hedge ratio 100% Debt financing – 54% fixed ratio 90% Fix ratio Hedge ratio (31/12/2018) – 74% Hedge ratio 80% Fixed rate debt, incl. bonds (24%) strategy and interest rate swaps/Caps (50%) 70% Duration hedges: 5.35y (31/12/2018) 60% vs 5.15y (2017) 50% 40% 30% 20% 10% 0% dec/18 2019 2020 20
Slide 50: Outlook FY 2019
Treesquare (BE) Outlook FY 2019 Subject to extraordinary circumstances, Leasinvest expects that the rental income in 2019 will be higher than in 2018, while the financial costs remain at a level comparable to that of 2018. However, after the capital increase of 2018, the results are divided over 5,9
Slide 51: Financial calendar and analyst coverage
Financial calendar 29 March 2019 Annual financial report 2018 Annual meeting of shareholders & Interim statement Q1 20 May 2019 (31/03/2019) Dividend payment (23/05/2018: Ex-date, 24/05/2018: 27 May 2019 Record date) Financial 21 August 2019 Half-year financial report 2019 calendar 14 November 2019
Slide 52: Share price performance
Strassen (LU) Share price performance
Slide 53: Share performance
320 280 240 Share 200 performance 160 120 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FY 2018 | Leasinvest 53 share price LRE EPRA Eurozone Index EPRA Belgium Index Leasinvest.be
Slide 54: Share performance
Share performance FY 2018 | Leasinvest 54 Leasinvest.be
Leasinvest Real Estate — FY2018 Earnings Presentation on 6ix