Wereldhave N.v. · EURONEXT:WHA
Wereldhave — FY2023 Earnings Presentation
54 slides from Wereldhave's earnings presentation, Feb 13, 2024
Slide 1: Wereldhave FY 2023 Results, 13 February 2024
13 February 2024, Wereldhave
Slide 2: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave
Slide 3: Key Messages
Key Messages * Direct result 2023 at € 1.73 per share, well within guidance range of € 1.70-1.75 * Proposed dividend for 2023 at € 1.20 per share (+3.4%) * Tenant sales up 7% vs. 2022 * Positive evolution of Dutch valuations * Four Full Service Centers delivered in 2023; on time, within budget and 9
Slide 4: FY 2022 vs FY 2023 key figures
FY 2022 FY 2023 Change Direct result per share (€) 1.63 1.73 +6.1% Indirect result per share (€) (0.20) 0.24 +220.0% Total result per share (€) 1.43 1.97 +37.8% FY 2022 FY 2023 Change EPRA NTA per share (€) 21.73 21.90 +0.8% Net LTV 42.4% 42.7% +0.3pp NPS (Benelux) +24 +24 0 Proportion of mixed-use
Slide 5: Table of contents
Table of contents 1. Key Messages & Highlights 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave
Slide 6: Highlights FY 2023
Highlights FY 2023 LFL NRI growth driven by FSC transformations and indexation Like-for-Like Net Rental Income Growth FY 2023 vs. FY 2022; % 10.0% 7.5% 5.0% Belgium Netherlands Core Portfolio 6 Wereldhave
Slide 7: Leasing activity by country
# of Leasing Occupancy Country MGR Uplift3) vs ERV Contracts1) Volume2) Rate Belgium 62 10.5% 3.9% 14.6% 98.2% Netherlands 211 24.1% (3.2%) 9.4% 95.5% Core Portfolio 273 18.3% (1.5%) 10.6% 96.6% France 12 7.1% (12.0%) (13.7%) 96.6% Total 285 17.4% (1.6%) 9.6% 96.6%
Slide 8: KPIs by asset category
KPI Full Service Center In Transformation Shopping Center # Assets 9 4 4 Mixed Use Percentage 16.8% 14.1% 7.7% Direct Result 6.1% 6.8% 6.4% Valuation Result 2.0% 3.1% 0.1% Total Property Return1) (unlevered) 8.1% 9.9% 6.5% Operating Performance MGR Uplift2) 0.0% (2.2%) (1.3%) MGR vs. ERV 15.1% 7.0%
Slide 9: Footfall matching core market performance
Footfall matching core market performance Footfall growth vs. same period 2022: Belgium FY 2023; % 20 10 0) 10 > Pp = o > fF fF B&F DB § € © B & € = 8 8 BB § S$ & & 3.7 3S € 8 € 6 Ss = ZG D3 G6 o ct 2 Sg 5 0 32 3 Zz — Wereldhave Belgium — Belgium SC Market © © BLSC, V December Footfall growth vs. sa
Slide 10: Tenant Sales
Tenant Sales 7% increase in tenant sales versus 2022) Tenant sales 2023 vs. 2022: Belgium?) FY 2022 & FY 2023; % 21% Impacted by Delhaize strikes in Nivelles and Tournai 14% 6% 2% = :. 1% Wereldhave Fashion Food & <= Health & vane Multimedta Shoes Belgium Beverage Beauty Household Electronics 1) Ren
Slide 11: LifeCentral Strategy continues to make WH more resilient
LifeCentral Strategy continues to make WH more resilient in an uncertain macro environment 2019/Launch LifeCentral 2022 2023 % of rent % of rent % of rent 2 is" o> RN 1% 0%] Total Daily Total Daily oe Total a | Life: 51% = 4% 8% Life: 62% @ Life: 66% @ \ < \ > 3% 5% 11% Daily Life Hl Food Il Food &
Slide 12: Benelux update
Benelux update Belgium 62 ‘ea. deals signed, 14.6% above ERV and 3.9% above previous rent on average. For example: * Kortrijk: Bon’Ap, Fox & Cie, Only, Vero Moda * Nivelles: Calzedonia, Intimissimi & Rituals * HEMA: 3 renewals and 1 new lease * 13 deals in Offices (9.2% above ERV and 7.0% above prev
Slide 13: Healthy OCRs in both countries
Healthy OCRs in both countries OCR Wereldhave Belgium” OCR Wereldhave NL?) FY 2023, LTM; % FY 2023, LTM; % 15% 15% 14% 13% 13% 13% 13% 13% 1% 9% 9% 8% 4% 4% 3% LJ a Wereldhave Fashion Food& Groceries Health & Homeware Multimedia Shoes Wereldhave Fashion Food& Groceries Health & Homeware Multimedia S
Slide 14: Direct result
Direct result _ 6% Increase in Direct Result (+6%) €0.8m -E 76m a € 84.2m €798m Actuals 2022 NRI Netherlands NRI NRI General Interest Actuals Belgium France Cost 2023 m Wereldhave
Slide 15: 2023 DRPS € 1.73 and outlook 2024 DRPS at € 1.75
2023 DRPS € 1.73 and outlook 2024 DRPS at € 1.75 Direct Result per Share Dividend per Share € € 1.88 120 1.25 173 175 175 1.16 - | | | 2021 2022 2023 2024FC 2025FC 2021 2022 2023P 2024FC ‘5 Wereldhave
Slide 16: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave 16
Slide 17: LifeCentral progress 2023
LifeCentral progress 2023 * Delivered four additional FSCs: Vier Meren in Hoofddorp (NL), De Koperwiek in Capelle a/d lJssel (NL), Eggert Center in Purmerend (NL) and Genk Shopping 1 in Genk (BE) * Currently four ongoing transformations, all done in separate phases to spread CAPEX; full delivery pla
Slide 18: Full Service Center asset KPIs
• • • • • 2023 Delta1) Occupancy (%) 95.7 0.7pp Mixed Use (%) 15.5 +9.0pp GRI (€ m) 7.0 +30.1% Footfall (m visitors) 5.7 +4.8% Sales growth (%) 11.2
Slide 19: Full Service Center asset KPIs
• • • • • • • 2023 Delta1) Occupancy (%) 94.7 +1.0pp Mixed Use (%) 16.4 +7.9pp GRI (€ m) 4.9 +15.8% Footfall (m visitors) 4.1 +3.2% Sales growth (%) 3.8
Slide 20: Full Service Center asset KPIs
• • • • • 2023 Delta1) Occupancy (%) 92.1 +4.3pp Mixed Use (%) 21.6 +5.2pp GRI (€ m) 5.4 +24.3% Footfall (m visitors) 4.5 +10.7% Sales growth (%) 11.6
Slide 21: Full Service Center asset KPIs
• • • • • 2023 Delta1) Occupancy (%) 93.8 -2.8pp Mixed Use (%) 23.4 +6.6pp GRI (€ m) 6.5 +7.5% Footfall (m visitors) 5.3 +8.3% Sales growth (%) 12.8
Slide 22: LifeCentral strategy: outperformance of Full Service Centers
LifeCentral strategy Significant outperformance of Full Service Centers Footfall Total Property Return” Retail Sales % delta 2023 FY vs. 2022 FY FY 2022 + FY 2023 % delta 2023 FY vs. 2022 FY 13% 15% 8% 6% IRR Hurdle —-======----—— 2% Full Service — Other Assets Full Service — Other Assets Full Servi
Slide 23: LifeCentral CAPEX program: almost 70% invested
LifeCentral CAPEX program: almost 70% invested Investments only done in -| NL & BE assets withIRRs. above threshold of 8.0% Total LifeCentral investments” in NL and BE, excl. FR ~~~ € m, 2020-2025+ 291 197 iz! 35 LifeCentral CAPEX Spent 2020-2023 Remaining 2024 2025 >2025 LifeCentral CAPEX [Uncommit
Slide 24: Capital allocation decisions NL & BE assets
Capital allocation decisions NL & BE assets
Slide 25: Continued evidence for strong FSC yield shift
Continued evidence for strong FSC yield shift Yield shift since start of FSC Transformation bps Vier Meren_ (117) De Koperwiek Cityplaza Sterrenburg Kronenburg Middenwaard Presikhaaf 8 Eggert 30 NL Market Yield’ 90 Shopping Belle-ile (15) | Ring Kortrijk (3) Genk Shopping 1 3 Tournai 68 BE Market Yi
Slide 26: Residential profits
Residential profits Development of residential units # Units Brugge 1) In Progress Middenwaard Il Early Stage Tilburg Kronenburg Winkelhof Total: 1,200 - 1,600 units Waterloo Koperwiek 26 Residential profit: € 0.50-0.80/share The macro environment has, for now, delayed the expected residential profi
Slide 27: Phase 2 LifeCentral: Why scale is relevant
Phase 2 LifeCentral: Why scale is relevant (i = Phase 2 of LifeCentral G Relevant for Equity Investors a Access to Public Debt Transform Market cap below thresholds of investors Threshold in € m 2 WH MCAP? Decreasing number of credit institutions”) In thousands of institutions 08 09 10 11 12 13 14 1
Slide 28: Adjusting the tactics of LifeCentral Phase 2
Adjusting the tactics of LifeCentral Phase 2: Exploring broadening of the geographic scope fA Wereldhave in good position to grow * Unsecured financing structure * Best-in-class real-estate management * Track record in successful FSC transformations © Growing in Benelux is challenging * Passive owne
Slide 29: LifeCentral Acquisition Criteria
LifeCentral Acquisition Criteria Item Criterium Sweet spot: 15K — 50k m? Dense area >75K households within 10 minutes driving distance Concept / tenant mix Aligned municipa For potential partnerships Flexible (broader than retail) Sustainability” Ability to operate at Paris-proof levels by 2045 Unle
Slide 30: Funding of our growth ambition
Fun 30 a 09000 ing of our growth ambition Leveraging unsecured profile Potential to fund with new equity Potential to rotate capital, e.g. via joint ventures Maintaining LTV target Wereldhave
Slide 31: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 5. ESG 6. Management Agenda 7. Appendices Wereldhave 31
Slide 32: Value, revaluation and EPRA NIY by country
Value (€ m) Revaluation FY 2023 EPRA NIY (%) Country FY 2022 FY 2023 €m % FY 2022 FY 2023 Belgium 849 850 (4.1) (0.5%) 6.2% 6.4% Netherlands 876 1,034 31.8 3.2% 6.9% 6.3% Core Portfolio 1,725 1,884 27.7 1.5% 6.6%1) 6.4%1) France 175 176 (8.3) (4.5%) 4.7% 4.8% Offices Belgium 100 102 (1.8) (1.7%) 6.9
Slide 33: Net LTV Target
Net LTV Target Net LTV LTV decreased to 42.7% in H2 2023 42.4% 43.9% 427% : Non-core asset Gent Overpoort sold (€ 8m) Disciplined CAPEX spendings in H2 2023 Acquisition of Polderplein asset, majority backed by new equity Disposal of last two French assets Disposal of asset not meeting IRR threshold
Slide 34: Finance: Investment Grade credit profile again
Finance We have an “Investment Grade credit profile” again Cumulative Capital Growth NL Net Loan to Value (LTV)” Debt vs. peers?) 2019 - 2022 Debt, % of value Debt/EBITDA 46.7% 40° | 7 44.8% aio% 42.4% 42.7% 10.9X 7.6X 6.8X 18.4% -38.0% 2019 2020 2021 += 2022 ©2023 Peer 1 WH Peer2 Peer3 Peer4 MSCI R
Slide 35: Debt, covenants and liquidity Q4 2023
Q4 2022 Q4 2023 Covenants Comments Debt increased following FSC capital expenditure dividend Interest bearing debt1) (€) 859m 943m payments and debt-funded portion of Polderplein acquisition (30%) Cost of debt increased following refinancings at higher spreads, Average cost of debt 2.50% 3.45% and r
Slide 36: Successful refinancings, among which first USPP since 2017
Successful refinancings, among which first USPP since 2017 Debt Mix Q@4 2022 Debt Mix Q4 2023 Hl uspP {8 Bank loans (incl. RCF) Hl Commercial Paper Ml Bonds Additional € 25m RCF financing not yet included Pro-forma Debt Maturity Profile including refinancings effective in January 2024 In€ém 300 ity
Slide 37: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 6. Management Agenda 7. Appendices 37 Wereldhave
Slide 38: Our Better Tomorrow strategy
Our Better Tomorrow strategy Our main commitments and results 2023 ESG performance rd] Maintain GRESB S-star rating KKK A e@ Climate mitigation -35%. Reduce carbon emissions with 30% by 2030, and : y Y since 2018 become Paris Proof in 2045 (incl. scope 3 emissions) Climate adaptation Mitigate physic
Slide 39: Maintaining our strong ESG position
Maintaining our strong ESG position ESG performance on sector, climate and investor benchmarks and ratings ; ‘ B ” ond GRESB kok HH 2025 10 consecutive years a © oO Nn i N N io] ey = 10 0) Cy = 10 N 10 N EPRA sBPR core S @ 8 consecutive years BREEAM’, Very Good kk 9 new assets at least BREEAM Very G
Slide 40: CAPEX 2024-2025e
• • • • • Year CAPEX 2018-2023 14 2024-2025e 5
Slide 41: Upcoming ESG projects 2024
Upcoming ESG projects 2024 Becoming future proof Further accelerate solar & EV strategy * 4.6 MWh generated / 13% of total energy consumption + Partnerships with tenants on direct solar energy usage, IRR 7% (excluding subsidy) + Build on EV charging partnership and increase our EV parking footprint
Slide 42: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices Wereldhave 42
Slide 43: Management Agenda
Management Agenda Focus on Te get 2022-2024 Current Stati Focus on earnings & dividend growth 4-6% CAGR as of 2023 4% annual growth on average” Focus on Total Return Exceed 8% annualized Total Return (Levered) FY 2023: 9.1% Successful FSC transformation Transformed 9 assets to FSC and started 4 9 FS
Slide 44: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. ESG 6. Management Agenda 7. Appendices 44 Wereldhave
Slide 45: Key Facts
Key Facts Number of retail assets1) 21 Average size 30,043 m² Number of shopping center 86.3 m visitors in 2023 Net loan-to-value ratio 42.7 % Occupancy shopping 96.6 % centers 9 EPRA NIY shopping centers 6.2 % WALT2) 5.2 years Development pipeline3) € 17 m 6
Slide 46: Portfolio split by country and type
Offices 5% Belgium 43% Netherlands 49% Retail Assets 95% France 8%
Slide 47: Top 10 Tenants % of rent
Top 10 Tenants % of rent Ahold Delhaize 5.7 % Jumbo Group 4.6 % A.S. Watson Group 3.1 % C&A 3.1 % Carrefour 2.2 % Bestseller 2.0 % Mirage Retail Group (Blokker) 2.0 % The Sting 1.6 % H&M 1.5 % A.F. Mulliez (Decathlon, Kiabi) 1.4 % Total top 10 27.1 %
Slide 48: Like-for-like NRI growth
Like-for-like NRI growth LFL NRI growth (% yoy) 0.7% -3.5% Belgium France Netherlands 48 MN FY 2021 ME FY 2022 MI FY 2023 Shopping centers Wereldhave
Slide 49: Occupancy rates
Occupancy rates [Pa 977% EPRA Occupancy rate Shopping Centers 96.6% 96.2% 96.6% | 6%) | 7 oS 7% 95.5% 94.7% Belgium France The Netherlands Shopping centers MN FY 2021 BE FY 2022 MI FY 2023 49 Wereldhave
Slide 50: Footfall
Footfall Change in visitors versus the same period previous year (%) 20% 18% 13% 12% L 13% 13% 7% 9% oi ml 1}! (28%) (28%) FY 2020 50 Note: 2020, 2021 and 2022 influenced by Covid Measures (8%) (8%) FY 2021 FY 2022 Hl Belgium Mi France (i Netherlands {MJ Full Service Centers FY 2023 Wereldhave
Slide 51: Breakdown of valuation results FY 2023
Breakdown of valuation results FY 2023 51 Belgium Netherlands Core portfolio France Offices Belgium Total (4.5%) Rent vs Yield HB Vield shift HB Market rent & other 3.2% Wereldhave
Slide 52: EPRA NTA
EPRA NTA EPRA NTA Bridge: YE 2022 to YE 2023 (€ per share) (116) 173 (0.65) 21.73 EPRA NTA Direct result Indirect result Dividend Issuance shares Other EPRA NTA YE 2022 YE 2023 52 Wereldhave
Slide 53: EPRA Value metrics definitions
EPRA Value metrics are defined in the EPRA BPR Guidelines dated February 2022
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