Plaza Centers N.V. · LSE:PLAZ
Plaza Centers — Investor Presentation (March 2012)
46 slides from Plaza Centers's investor presentation, Mar 30, 2012
Slide 1: Investor presentation
Investor presentation 30 March, 2012 1
Slide 2: The Plaza Centers Team
The Plaza Centers Team 2 Mordechay Zisser, Founder Founder of the Europe Israel Group of companies and Chairman of the board of directors of Elbit Medical Imaging Ltd. Has developed some of the most ambitious and prestigious real estate development projects in Israel (including the city of Emman
Slide 3: Company Structure
Company Structure 3 Elbit Imaging TASE / NASDAQ 9.82% 62.25% ING Open Pension Fund 5.94% Poland Plaza Centers N.V. BZ WBK AIB 5.07% Asset Management S.A. Aviva PTE LSE / WSE Poland Real Estate Residential Projects Shopping & Entertainment Investment Fund India Centers USA CEE and India
Slide 4: Investment Highlights
Investment Highlights 4 Leading emerging markets developer of shopping and entertainment centres . . . The Company possesses a proven track record of over 16 years in initiation, construction, development, leasing, management and sale of commercial and entertainment centers and activity in 8 count
Slide 5: Capital Markets
Capital Markets 5 On 1 November 2006, the Company raised c. £166m (c. €247m) from its IPO and began trading on the Main Board of the London Stock Exchange Plaza Centers shares have been traded in the main list on the Warsaw stock exchange since 19 October 2007 - first property company to achieve
Slide 6: A Lean Management Structure Relying on Local Teams
A Lean Management Structure Relying on Local Teams 6 Plaza Centers Board Executive Directors Oversight of company strategy and Mordechay (Motti) Zisser all project development decisions Founder Wide-ranging property Ran Shtarkman development expertise President & CEO Review and approval of bus
Slide 7: History
History 7 1996 First investment in Hungary 1996–2004 Developed and managed a portfolio of 20 shopping and entertainment centres 2004 Sold 12 shopping and entertainment centres to Klépierre at a gross asset value of €278m (c. 9.3% net yield) 2005 Sold 4 shopping and entertainment centres to Dawnay Da
Slide 8: Investment Highlights - Sold Developments
Investment Highlights - Sold Developments 8 26 property disposals for approximately €1.2b Hungary – 17 Poland – 7 Czech Republic - 2
Slide 9: Key Highlights - Grand opening of Torun Plaza
Key Highlights - Grand opening of Torun Plaza 9
Slide 10: Key Highlights - Grand opening of Kragujevac Plaza
Key Highlights - Grand opening of Kragujevac Plaza 10 The first western style shopping and entertainment center out side the capital Belgrade
Slide 11: Arena Plaza, Budapest
Arena Plaza, Budapest 11 The sale represented circa 20% of all real estate transactions in Hungary during 2007 Lettable area – 66,000 m2 Project cost – €162m Selling price – €387m Total profit – €225m
Slide 12: The Company's strategy and position in current global crises
The Company’s strategy and position in current global crises 12 Currently focusing the development efforts on Poland, Serbia and India while continuing to invest in yielding assets in the US... The Company is flexible on decision making regarding the holding and management of centers as opposed to
Slide 13: The Company's strategy and position in current global crises (cont.)
The Company’s strategy and position in current global crises (cont.) 13 Investment in retail income producing properties in the U.S: ― contribution to the current cash flows while avoiding any development risk Banks continue to finance construction, though in lower ratios and higher cost: from th
Slide 14: Expected cash flow for the coming two years
Expected cash flow for the coming two years 14 1 January, 2012 - 31 December, 2012 1 January 2013 - 31 December, 2013 Cash - Opening Balance - Headquarter level 99 73 Sources proceeds from selling trading and investment 114 84 properties cash flows from operating Activities (1) 34 45 Issuance of new
Slide 15: Expected NOI from properties (excluding US)
Expected NOI from properties (excluding US) 15 Total related debt Period 2012 2013 Representing NOI upon completion MEUR MEUR MEUR MEUR Operating Shopping and 17.5 12.1 20.7 154.1 entertainment centers(1) Shopping and entertainment 6.0 10.2 10.5 64.8 centers under construction(2) Total 23.5 22.3 31.
Slide 16: Debt & Liquidity Structure as at 31.12.2011
Debt & Liquidity Structure as at 31.12.2011 16 Debt structure MEUR Debt Debentures 256 (1) CEE – operating malls 143 CEE – projects under development 63 Bank Loans US 159 India 29 Financial Instruments 55 Total Debt 705 Resources Liquid balances – Headquarter level 99 Financial instruments and restr
Slide 17: Debentures repayment schedule
Debentures repayment schedule 17 MEUR Debentures repayment schedule 100.0 90.0 80.0 70.0 60.0 50.0 95.1 40.0 83.4 75.2 71.7 30.0 20.0 10.0 12.0 11.5 0.0 2012 2013 2014 2015 2016 2017 * Including repayment of principal and interest on Israeli and Polish debentures
Slide 18: Portfolio Composition – by Country (excluding U.S)
Portfolio Composition – by Country (excluding U.S) 18 Total portfolio of 36 assets in 9 countries 1 Offices 1 Under Development 3 1 Completed & Active 8 7 1 1 64 5 3 1 1 2 2 2 1 1 Romania Poland India Hungary Czech Serbia Bulgaria Greece Latvia Republic
Slide 19: Active shopping and entertainment centres
Active shopping and entertainment centres 19 Liberec Plaza, Czech Republic Riga Plaza, Latvia GLA – 17,000 sqm GLA - 49,000 sqm Occupancy – 78% Occupancy – 90% Zgorzelec Plaza, Poland Suwalki Plaza, Poland GLA – 13,000 sqm GLA - 20,000 sqm Occupancy – 79% Occupancy – 89%
Slide 20: Active shopping and entertainment centres
Active shopping and entertainment centres 20 Torun Plaza, Poland Kharadi Plaza (Matrix 1), India GLA - 40,000 sqm GLA - 28,000 sqm Occupancy – 80% Sold – 70% Kragujevac Plaza, Serbia Koregaon Park Plaza (Mall), India GLA - 22,000 sqm GBA - 48,000 sqm Occupancy – 92% Occupancy – 85%
Slide 21: U.S Operation – EDT Portfolio
U.S Operation – EDT Portfolio 21 In June 2010, EPN (a US fund in which Plaza holds a circa 23% stake) completed the transaction to gain control (48%) at the Australian listed EDT Fund and purchased 50% of the management company partnering with DDR (American operator of shopping malls) for approxim
Slide 22: U.S Operation – EDT Portfolio: Exit transaction
U.S Operation – EDT Portfolio: Exit transaction 22 In January 2012, EPN reached an agreement to sell 47 of its 49 US based shopping centres in a deal totaling US$1.428 billion The centres are to be acquired by BRE DDR Retail Holdings LLC, a joint venture between Blackstone and DDR Transaction
Slide 23: U.S Operation – EDT Portfolio: sample properties
U.S Operation – EDT Portfolio: sample properties 23
Slide 24: Conclusions
Conclusions 24 16-year track record of developing shopping and entertainment centres in CEE Expanding portfolio and constantly evolving pipeline Flexibility and ability to anticipate as well as adapt to market trends Highly skilled and experienced management team Strong relationships with leading in
Slide 25: Appendix A Current Portfolio
Appendix A Current Portfolio 25
Slide 26: Shopping & Entertainment Centres Developments
Shopping & Entertainment Centres Developments 26 Market value on Market value of the land and Expected Project City Ownership (%) GLA (m2) completion (€m)(1) project (€m)(1) completion Hungary Uj Udvar Budapest 35 16,000 3.0 3.0 2014 Poland Suwalki Plaza Suwalki 100 20,000 48.6 48.6 Operating Torun
Slide 27: Other Properties and Developments
Other Properties and Developments 27 Market value on Market value of the land and Expected Project City Ownership (%) GLA (m2) completion (€m)(1) project (€m)(1) completion Extensions Arena Plaza Extension Budapest 100 40,000 69.8 8.7 2015 Mixed use developments Dream Island, Obuda(3) Budapest 43.5(
Slide 28: Projects overview – Completed Projects
Projects overview – Completed Projects 28 Zgorzelec Plaza (Poland) Suwalki Plaza (Poland) City: Zgorzelec, Poland City: Suwalki Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 13,000 (GLA) Size: 20,000 (GLA) Plaza Share: 100% Plaza Share: 100% Stat
Slide 29: Projects overview – Completed Projects
Projects overview – Completed Projects 29 Liberec Plaza (Czech Republic) Riga Plaza (Latvia) City: Liberec, Czech Republic City: Riga, Latvia Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 17,000 (GLA) Size: 49,000 (GLA) Plaza Share: 100% Plaza Shar
Slide 30: Projects overview - Poland
Projects overview - Poland 30 Leszno Plaza Kielce Plaza City: Leszno City: Kielce Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 16,000 (GLA) Size: 33,000 (GLA) Plaza Share: 100% Plaza Share: 100% Completion Date: 2015-2016 Completion Date: 2014
Slide 31: Projects overview – Serbia
Projects overview – Serbia 31 Belgrade Plaza Sport Star Plaza City: Belgrade City: Belgrade Type: Mixed use (offices, Hotel & retail) Type: Shopping & entertainment centre Size: 70,000 (GBA) Size: 40,000 (GLA) Plaza Share: 100% Plaza Share: 100% Completion Date: 2015 Completion D
Slide 32: Projects overview – India
Projects overview – India 32 Koregaon Park Kharadi City: Pune City: Pune Type: Mixed use (Shopping, entertainment & offices) Type: Offices Size: 110,000 (GBA) Size: 250,000 (GBA) Plaza Share: 100% Plaza Share: 50% Completion Date: Operating (Mall) Completion Date: December 2012 -
Slide 33: Projects overview – India
Projects overview – India 33 Bangalore Chennai City: Bangalore City: Chennai Type: Residential Scheme Type: Residential Scheme Size: 320,000 (GBA) Size: 1,060,000 (GBA) Plaza Share: 23.75% Plaza Share: 38% Completion Date: 2013-2018 Completion Date: 2014-2018 Status: Planning a
Slide 34: Projects overview - Romania
Projects overview - Romania 34 Casa Radio Timisoara Plaza City: Bucharest City: Timisoara Type: Mixed use Type: Shopping & entertainment centre Size: 600,000 (GBA) Size: 38,000 (GLA) Plaza Share: 75% Plaza Share: 100% Completion Date: 2014-2016 Completion Date: 2014 Status: Ini
Slide 35: Projects overview - Romania
Projects overview - Romania 35 Csiki Plaza Targu Mures Plaza City: Miercurea Ciuc City: Targu Mures Type: Shopping & entertainment centre Type: Shopping & entertainment centre Size: 14,000 (GLA) Size: 30,000 (GLA) Plaza Share: 100% Plaza Share: 100% Status: Awaiting external financ
Slide 36: Projects overview - Hungary
Projects overview - Hungary 36 Dream Island Arena Extension City: Budapest City: Budapest Type: Business and leisure resort Type: office Size: 350,000 (GBA) Size: 40,000 (GLA) Plaza Share: 43.5% Plaza Share: 100% Completion Date: 2014-2016 Completion Date: 2015 Status: Initial
Slide 37: Projects overview – Bulgaria
Projects overview – Bulgaria 37 Shumen Plaza Sofia Plaza Business center City: Shumen City: Sofia Type: Shopping & entertainment centre Type: Mixed use (Retail & offices) Size: 20,000 (GLA) Size: 44,000 (GLA) Plaza Share: 100% Plaza Share: 51% Completion Date: 2014-2015 Status: U
Slide 38: Projects overview – Greece
Projects overview – Greece 38 Piraeus Plaza City: Athens (Greece) Type: Shopping & entertainment centre Size: 26,000 (GLA) Plaza Share: 100% Completion Date: 2014-2015 Status: Building permit obtained, awaiting external financing
Slide 39: Projects overview – Residential Projects
Projects overview – Residential Projects 39 Roztoky (Czech Republic) Prague 3 (Czech Republic) City: Prague, Czech Republic City: Prague, Czech Republic Type: Residential Type: Residential Size: 14,000 (GBA) Size: 61,600 (GBA) Plaza Share: 100% Plaza Share: 100% Completion Date: 20
Slide 40: Projects overview – Office buildings
Projects overview – Office buildings 40 David House (Hungary) Palazzo Ducale (Romania) City: Budapest, Hungary City: Bucharest, Romania Type: Office Type: Office Size: 2,000 (GLA) Size: 700 (GLA) Plaza Share: 100% Plaza Share: 100% Status: Operating Status: Operating
Slide 41: Appendix B Financial Overview
Appendix B Financial Overview 41
Slide 42: Financial Position
Financial Position 42 2,009 2,010 2011 Comments Non current assets 115,059 361,129 338,476 Increase in 2011 due to strengthening USD against the EUR, and purchase Investment property 13,399 238,702 272,348 of US minority Other non current assets 101,660 122,427 66,128 Decrease in 2011 mainly due to
Slide 43: Income Statements
Income Statements 43 2009 2010 2011 Comments 2011 – includes US rental income- €25.5m, rent in Europe- €16.4m, Fantasy Park - €7.1m, fair value adjustment of Investment property- €8.1m. 2010 – Revenues 15,616 32,994 48,990 includes US rental income- €12.5m, rent in Europe- €12m, Fantasy Park - €7.5m
Slide 44: Appendix C Company Track Record
Appendix C Company Track Record 44
Slide 45: Summary of Sold Developments —Hungary
Summary of Sold Developments —Hungary 45 Shopping and entertainment centres sold to Klépierre in 2004—gross asset value of €278m and average net yield of approximately 9.3% Name City Country GLA (m2) Alba Plaza Szekesfehervar Hungary 14,981 Csepel Plaza Budapest Hungary 13,565 Debrecen Plaza Debre
Slide 46: Summary of Sold Developments—Poland & Czech Republic
Summary of Sold Developments—Poland & Czech Republic 46 Shopping and entertainment centres sold to Klépierre in 2005—gross asset value of €204m and average net yield of approximately 8.4% Name City Country GLA (m2) Krakow Plaza Krakow Poland 30,209 Poznan Plaza Poznan Poland 29,522 Ruda Slaska Pla