Wereldhave N.V. · EURONEXT:WHA
Wereldhave — H1 2013 Earnings Presentation
29 slides from Wereldhave's earnings presentation, Aug 1, 2013
Slide 1: Half-year results 2013
Half-year results 2013 Amsterdam Schiphol 1 August 2013
Slide 2: Introduction CFO
Introduction CFO Pieter Roozenboom Age 41 Nationality Dutch 2010 – 2013 CEO Merin (former Uni-Invest Holding) a.o. restructuring CMBS, equity and syndicated mezzanine loan, new strategy and businessplan 2006 – 2010 CFO Uni-Invest Holding a.o. preparation IPO 2003 – 2006 COO ING REIM Europe Finance,
Slide 3: Main topics
Main topics Q2 2013 Core retail portfolio LfL NRI at target with +3.3%; above target in Belgium and Finland, below target in NL Core office portfolio LfL NRI: Paris +6.2%, Madrid -6.6% Occupancy core portfolio remains stable Sale non-core portfolio advancing with € 55m in Q2, including mixed
Slide 4: Key results
Key results H1 2013 H1 2012 % growth % LFL growth Total NRI core portfolio € 46.1m € 44.8m 3.0% 3.2% Total NRI non-core portfolio € 16.6m € 31.9m (48.0)% (11.7)% Total net rental income € 62.7m € 76.7m (18.2)% 1.3% Occupancy 94.8 % 95.1 %* (30)bps Direct result € 43.2m € 49.0m (11.9)% Direct result
Slide 5: Strategy Regroup Phase
Strategy Regroup Phase Operational Excellence Controlled Development Pipeline Like for Like rental growth in % € 108m invested in H1, € 95 - 115m expected for H2 Pipeline on track in Belgium, Finland and France Netherlands challenging, adjusting to new economic reality Core Retail LFL Index Ta
Slide 6: Direct result per share
Direct result per share (€ 0.03) € 0.01 (€ 0.36) € 0.12 (€ 0.05) € 2.07 € 1.76 2012 Q2 Standing Acquisitions Disposals General costs Currency 2013 Q2 portfolio Decrease result standing portfolio mainly driven by sales of UK and US portfolio Reduced overhead expenses from closing UK & US offices
Slide 7: Valuation result
Valuation result standing portfolio 4.0% 3.0% 2.0% € 3.7m 1.0% +1.9% € 1.6m € 2.1m +0.5% +0.5% (0.1)% 0.0% (0.5)% (€ 12.1)m -1.0% (2.7)% -2.0% (3.6)% -3.0% (€ 15.1)m -4.0% (€ 4.4)m Belgium Finland France The Netherlands Spain Total Yield MR / Other 7
Slide 8: EPRA NAV per share
EPRA NAV per share € 1.76 (€ 1.15) (€ 3.30) (€ 0.92) € 0.19 € 67.91* € 64.49 2012 EY Direct result Indirect result Dividend Currency Other 2013 Q2 IFRS NAV** EPRA NNNAV 31 Dec. 2012: € 63.64* 31 Dec. 2012: € 65.72* 30 June 2013: € 59.71 30 June 2013: € 61.91 * Effect revised IAS 19 Pensions:
Slide 9: Belgium
Belgium Key parameters retail H1 2013 H1 2012 Net rental income € 12.9m € 10.2m LfL 5.8% 4.9% Occupancy 99.4% 99.4% Valuation result +0.6% +0.7% NIY (EPRA) 5.8% n.a. Standing investments € 379.5m € 362.9m Under construction € 68.1m € 50.4m Genk Shopping I Core retail LfL NRI 5.8%, 420bps above CPI
Slide 10: Finland
Finland Key parameters retail H1 2013 H1 2012 Net rental income € 11.2m € 12.7m LfL 4.3% 5.5% Occupancy 99.1% 98.5% Valuation result +0.5% +0.2% NIY (EPRA) n.a. n.a. Standing investments € 460.4m € 458.2m Under construction € 62.9m € 11.7m Core retail LfL NRI 4.3%, 220bps above CPI, due to positiv
Slide 11: Netherlands
Netherlands Key parameters retail H1 2013 H1 2012 Foto sh centre Net rental income € 15.3m € 14.9m LfL 1.2% 4.0% Occupancy 94.8% 97.3% Valuation result -2.4% -0.5% NIY (EPRA) 6.0% n.a. Standing investments € 479.9m € 504.9m Under construction € 8.7m € 2.1m Core retail LfL NRI +1.2%, 120bps below C
Slide 12: Modernising Dutch portfolio: shopping centre Eggert
Modernising Dutch portfolio: sh. centre Eggert 12 Wereldhave Management Holding BV
Slide 13: Current bottlenecks and new solutions
Current New Bottlenecks Solutions Entrances; poorly visible, uninviting and low Upgrading entrances and interior quality architecture Introduction 100% route Interior; dark passages, escalators poorly Positioning anchors visible, disorderly and badly visible shop fronts New F&B plaza L
Slide 14: Shopping centre visitors
Shopping centre visitors Core retail portfolio * H1 2013 H1 2012 % growth (x 1,000) Belgium 5,063 4,698 7.8% Netherlands 14,296 14,624 (2.2)% Total 19,359 19,322 0.2% * No relevant visitors numbers available for Finland, due to refurbishment project and change of counting systems Footfall Dutch re
Slide 15: Paris
Paris Key parameters office H1 2013 H1 2012 Net rental income € 4.9m € 4.6m LfL 6.2% 0.6% Occupancy 99.0% 99.0% Valuation result +1.9% +2.5% NIY (EPRA) 6.0% n.a. Standing investments € 179.3m € 168.1m Under construction € 163.2m € 72.6m LfL NRI +6.2% due to lease in Le Cap already in Q3 2012. Occu
Slide 16: Development projects
Development projects Committed (in €m) Total Capex Expected NIY Percentage Completion Investment so far pre-let Ghent (BEL) 15 8 6.25% - 6.75% 70% Q1 2014 Joinville-le-Pont (FR) 71 62 - pre-sold Q4 2013 / Q1 2014 Itis (FIN) 102 63 7.0% 68% Q2 2014 Issy-Les-Moulineaux (Noda, FR) 138 81 7.0% - 7.5% 0%
Slide 17: Finance
Finance Key parameters 30 June 2013 31 December 2012 Covenants Interest bearing debt * € 689m € 1,282m Average cost of debt** 2.7% 2.7% Fixed vs floating debt 57% / 43% 49% / 51% LTV 28% 44% ≤60% ICR 6.1x 4.6x ≥2.0x Diversification debt profile Maturity profile (€m) Debt 6% 286 275 20% Undrawn 33% 1
Slide 18: Loan-to-Value
Loan-to-Value (24.8)% The LTV increased during Q2 from 24.2% to 2.2% 4.4% 2.5% 27.9% due to the dividend distribution and 43.6% Capex, which was mitigated by the Q2 27.9% result and the sale of the Dutch non-core portfolio FY 2012 Disposals Capex Dividend & Other H1 2013 Result Development capex i
Slide 19: Outlook
Outlook Direct result per share FY 2013 between € 3.20 - 3.30, with a proviso for further deterioration of economic conditions Dividend forecast maintained at € 3.30 per share Investment product on offer has increased, but quality is scarce. Selectively exploring opportunities to invest Sale
Slide 20: Appendix
Appendix De Eggert - The Netherlands 20
Slide 21: Portfolio composition
Portfolio composition 2% 10% 21% 14% 77% 76% Core retail Core offices Non-core Retail Offices Other 5% 29% 28% 11% 27% Belgium Finland France Netherlands Spain 21
Slide 22: Top 10 Tenants & Top 5 Properties
Top 10 Tenants & Top 5 Properties Rank Tenant % of rent Rank Property Sector Value June % of Total 2013 1 EDF 7.9% 1 Itis (Helsinki, FIN) Sh.centre € 461m 26.5% 2 Hennes & Mauritz 3.0% 2 Belle-Ile (Liège, BEL) Sh.centre € 162m 9.3% 3 Ahold 2.7% 3 Carré Vert (Paris, FRA) Office € 150m 8.6% 4 Stockman
Slide 23: Occupancy
Occupancy Occupancy Value * Core portfolio Q2 2013 Q1 2013 Q4 2012 30 June 2013 Belgium 99.4% 98.9% 98.7% € 380m 21.8% Finland 99.1% 99.1% 98.5% € 461m 26.5% Netherlands 94.8% 95.3% 97.1% € 480m 27.6% Total core retail 97.4% 97.5% 98.0% € 1,321m 75.9% Paris 99.0% 99.0% 99.0% € 189m 10.9% Spain 87.8%
Slide 24: Lease expiry profile per sector
Lease expiry profile per sector 1.1% 1.5% Other 1.9% Core Offices 1.5% Core Retail 3.2% 2.3% 1.2% 0.9% 1.7% 4.2% 8.5% 5.2% 14.8% 22.1% 8.1% 7.3% 4.9% 0.7% 2.2% 0.3% 5.4% 1.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 > 2022 Excluding indefinite contracts (6.6% of total) 24
Slide 25: Valuation: Core and non-core portfolios
Valuation: Core and non-core portfolios Core portfolios – In €m H1 2013 FY 2012 % growth Belgium 379.5 377.5 0.5% Finland 460.4 458.3 0.5% Netherlands 479.9 491.3 (2.3)% Paris 179.2 174.7 2.6% Spain 60.4 61.9 (2.3)% Total 1,559.4 1,563.7 (0.3)% Non-core portfolios – In €m H1 2013 FY 2012 % growth Be
Slide 26: EPRA Net Initial Yield
EPRA Net Initial Yield In % Core Retail Core Office Non-Core Total Belgium 5.8 - 5.9 5.9 Finland n.a. - - n.a. Netherlands 6.0 - 5.6 6.0 Paris - 6.0 - 6.0 Spain - 6.3 5.0 5.9 EPRA NIY 5.9 6.1 5.7 5.9 As per 30 June 2013 Wereldhave implemented the EPRA Net Initial Yield* EPRA Net Yield: 5.9% (top
Slide 27: NAV reconciliation (IFRS – EPRA)
NAV reconciliation (IFRS – EPRA) in € per share IFRS NAV 30 June 2013 59.71 Effect of conversion 2.14 Diluted NAV 61.85 Fair value derivatives (0.71) Deferred tax 3.43 Goodwill (0.08) EPRA NAV 64.49 Fair value derivatives 0.71 Fair value interest bearing debt (1.23) Deferred tax (2.06) EPRA NNNAV 61
Slide 28: Overview of redevelopment Itis
Overview of redevelopment Itis Level 1 Pasaasi Bulevard Diagonal Stockmann Tenant relocation programme 28
Slide 29: Contact details
Contact details Press: 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 29