Lighthouse Properties Plc · JSE:LTE
Lighthouse Properties — Lighthouse Capital — H1 2021 Earnings Presentation
45 slides from Lighthouse Properties's earnings presentation, Aug 6, 2021
Slide 1: Investor Presentation: 1H 2021
Investor Presentation: 1H 2021 6 August 2021
Slide 2: Financial results 1H 2021 Highlights
1. Financial results 1H 2021 Highlights • Interim distribution per share of 1.61 € cents • Gearing ratio of 11.3% • Distributable earnings per share of 1.8095 € cents • Occupancy rate of 99% maintained › 13.3% like-for-like growth (vs 31 March 2020 interim) • Post period end: acquisition of French p
Slide 3: Strategy
1. Financial results 1H 2021 Strategy • Lack of real estate investment opportunities pre-2020 • In March 2020 disposed of Forum Viseu and rotated into utilities and infrastructure securities • Utilities and infrastructure since been negatively impacted by regulatory intervention (environmental and s
Slide 4: Forum Coimbra
1. Financial results 1H 2021 Forum Coimbra LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 4
Slide 5: Forum Coimbra footfall and sales
1. Financial results 1H 2021 Forum Coimbra Forum Coimbra (Footfall and sales relative to 2019) • Entire reporting period affected by government intervention › Mandatory discount based on 2019 turnover 120% › Maximum discount 50% • From 1 July 2021 government intervention ceased and returned 100% to
Slide 6: Planet Koper
1. Financial results 1H 2021 Planet Koper LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 6
Slide 7: Planet Koper footfall and sales
1. Financial results 1H 2021 Planet Koper Planet Koper (Footfall and sales relative to 2019) • Affected by extended lockdown from mid-October 2020 to the end of February 2021 and a further 11-day lockdown in 140% April 2021 120% • Since re-opening in April, footfalls and sales continued to improve t
Slide 8: Hammerson
1. Financial results 1H 2021 Hammerson • Co-major shareholder with APG Asset Management • Current holding 21.9% › Minimal additional share purchases during period • Following 2020 rights issue, balance sheet further strengthened › Disposal of retail parks to Brookfield for GBP330 million › Oversubsc
Slide 9: Key indicators & financial performance
1. Financial results 1H 2021 Key indicators & financial performance Interim Final Interim 30 June 2021 31 December 2020 30 June 2020 (6 months) (9 months) (6 months) Shares in issue 1 249 091 776 1 207 790 136 607 790 136 Distributable earnings per share (€ cents) 1.810 1.649 1.5967 Distribution per
Slide 10: Gearing
1. Financial results 1H 2021 Gearing Asset value Debt Gearing Cost of debt (€ '000) (€ '000) % % Direct property investments 248 700 104 975 39.4% 2.4% Listed investments 441 780 - 0.0% - Total / average 690 480 104 975 11.3% 2.4% LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 10
Slide 11: Asset breakdown
1. Financial results 1H 2021 Asset breakdown Dec 2020 Jun 2021 Direct property Direct 36,0% Listed real property estate 47,7% 46,8% Listed real estate 57,9% Listed Listed infrastructure infrastructure 6,1% 5,5% LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 11
Slide 12: Investments
1. Financial results 1H 2021 Investments Sector Jurisdiction Fair value % of total 30 June 2021 (€ '000) investments Hammerson plc Listed real estate Europe / UK 399 527 57.9% Forum Coimbra Direct Property Europe 182 267 26.4% Planet Koper Direct Property Europe 66 433 9.6% E.ON SE Listed infrastruc
Slide 13: Malta redomicile
1. Financial results 1H 2021 Malta redomicile • Rationale for the redomicile to Malta › Integration into the EU business environment › Geographically closer to physical assets and investments › Greater flexibility with regards to various EU REIT regimes › Enhanced access to the EU debt and equity ca
Slide 14: French portfolio acquisition
French portfolio acquisition 6 August 2021
Slide 15: Investment thesis
2. French portfolio acquisition: Investment thesis France is a G7 economy (S&P AA rating and GDP per capita France is the third largest economy in Europe France is the most popular tourist destination in the world (by 2020 GDP, in € billions) (by 2019 number of international visitors, in millions 90
Slide 16: Portfolio highlights
2. French portfolio acquisition: Portfolio highlights 4 regional shopping malls located in major non-metropolitan 1 cities with strong macro drivers acquired at an attractive yield with good asset management opportunities 1 2 2 • Established malls with strong trading performance 3 3 • Dominant in th
Slide 17: Transaction details
2. French portfolio acquisition: Transaction details Acquisition price Circa €305 million (€300 million plus circa €5 million capex to be spent by effective date) Transaction fees circa 1.5% Transaction yield 8.1% yield (2022 projected NOI) (NOI yield) Effective date 30 September 2021 Funding €110 m
Slide 18: Portfolio overview
2. French portfolio acquisition: Portfolio overview Portfolio total GLA (m2) 47 292 37 009 * 34 781 28 301 147 383 Value (€) 55 950 000 77 250 000 87 550 000 84 250 000 305 000 000 Projected Yield NOI 2022 8.1% Occupancy 93.4% 93.9% 89.8% 95.9% 93.2% Footfall (million pa) 2019 6,9 3,9 9,5 6,2 26,5 T
Slide 19: Investment thesis: NOI
2. French portfolio acquisition: Investment thesis 35 30 25 NOI (€ million) 20 15 10 5 0 2021 2022 2023 2024 Base NOI Capex returns Letting vacancies LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 19
Slide 20: Anchor tenants
2. French portfolio acquisition: Anchor tenants Grocers Fashion Food & Leisure * ** ** * Under Heads of Terms | ** Separate 3rd party ownership but part of broader mall LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 20
Slide 21: Management
2. French portfolio acquisition: Management • Asset management team and expertise based in Amsterdam • Property management to be outsourced to professional third-party service provider › Terms agreed with Accessite • Leasing to be jointly managed by Lighthouse asset management team and Accessite LIG
Slide 22: Docks Vauban
2. French portfolio acquisition: Docks Vauban LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 22
Slide 23: Docks Vauban
2. French portfolio acquisition: Docks Vauban LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 23
Slide 24: Docks Vauban: Investment thesis
2. French portfolio acquisition: Docks Vauban Investment thesis Catchment area • Located in Le Havre which is the largest container terminal 10 MINS in France (and 5th busiest in Europe) with a strong regional 123 856 economy – average median revenue in the urban area is 20 MINS €12 292 per inhabita
Slide 25: Docks Vauban: Asset management initiatives
2. French portfolio acquisition: Docks Vauban Asset management initiatives • Structural non-retail vacant space (c. 6 349m²) representing › c. 5 000m² repurposed as storage space as not regarded as fit-for-purpose retail space › Office space – attractive due to proximity to train station and city ce
Slide 26: Docks Vauban: Floorplan
2. French portfolio acquisition: Docks Vauban Floorplan: Ground level LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 26
Slide 27: Docks
2. French portfolio acquisition: Docks 76 LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 27
Slide 28: Docks
2. French portfolio acquisition: Docks 76 LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 28
Slide 29: Docks 76: Investment thesis
2. French portfolio acquisition: Docks 76 Investment thesis Catchment area • Located in the port city of Rouen, capital city of the wealthy Normandy region 10 MINS 163 599 • One of the fastest growing cities driven by tourism and the 20 MINS university with an average median revenue in the urban 432
Slide 30: Docks 76: Asset management initiatives
2. French portfolio acquisition: Docks 76 Asset management initiatives • Good food and beverage and entertainment offering to be strengthened to become a more powerful family and upmarket entertainment destination – newly signed: › Biltoki (c. 1 816m²) – leading food hall concept with the best indep
Slide 31: Docks 76: Floorplans
2. French portfolio acquisition: Docks 76 Floorplan: Ground level Floorplan: Upper level LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 31
Slide 32: Saint Sever
2. French portfolio acquisition: Saint Sever LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 32
Slide 33: Saint Sever
2. French portfolio acquisition: Saint Sever LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 33
Slide 34: Saint Sever: Investment thesis
2. French portfolio acquisition: Saint Sever Investment thesis 10 MINS • Located in the heart of Rouen, capital city of the wealthy Normandy 177 935 region 20 MINS 418 000 • Most visited shopping mall in Normandy with an average median 40 MINS revenue in the urban area of €13 184 per inhabitant 852
Slide 35: Saint Sever: Asset management initiatives
2. French portfolio acquisition: Saint Sever Asset management initiatives • Primark expansion to commence in 2021 (expected completion mid 2022) › c. 7 347m² multi floor space with majority of the sale surface located on the first level › This will enhance the malls positioning and be expected to su
Slide 36: Saint Sever
2. French portfolio acquisition: Saint Sever LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 36
Slide 37: Saint Sever: Floorplans
2. French portfolio acquisition: Saint Sever Floorplan: Ground level Floorplan: Upper level LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 37
Slide 38: Rivetoile
2. French portfolio acquisition: Rivetoile LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 38
Slide 39: Rivetoile
2. French portfolio acquisition: Rivetoile LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 39
Slide 40: Rivetoile: Investment thesis
2. French portfolio acquisition: Rivetoile Investment thesis Catchment area • Wealthy catchment area of Strasbourg (housing EU Parliament, Council of Europe, European Court of Human Rights and prominent banking sector). Strong fundamentals with an average median revenue in the urban area of €13 255
Slide 41: Rivetoile: Asset management initiatives
2. French portfolio acquisition: Rivetoile Asset management initiatives • Ground floor expansion to improve linkage (which is formed by 4 blocks corresponding with the residential building above the mall) • This expansion project has been approved and will create additional trading space (c.12 new u
Slide 42: Rivetoile: Asset management initiatives
2. French portfolio acquisition: Rivetoile Asset management initiatives LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 42
Slide 43: Rivetoile: Floorplans
2. French portfolio acquisition: Rivetoile Floorplan: Lower level Floorplan: Ground level LIGHTHOUSE CAPITAL LIMITED RESULTS PRESENTATION 43
Slide 44: Bookbuild
Bookbuild Detail Amount R1.5 billion (Indicative support of c. R1.2 billion from Resilient) Timing Open: 12 and 13 August 2021 Settlement: c. 20 August 2021 Mechanism Accelerated bookbuild Use of proceeds To part fund the acquisition price payable for the French portfolio Lighthouse Capital Limited
Slide 45: Questions
LEGHTHOUS Questions