Wereldhave N.v. · EURONEXT:WHA
Wereldhave — H1 2021 Earnings Presentation
27 slides from Wereldhave's earnings presentation, Jul 27, 2021
Slide 1: Results H1 2021
Results H1 2021 27 July 2021 USPP Investors
Slide 2: Highlights H1 2021
Highlights H1 2021 H1 2020 H1 2021 Change Direct result per share (€) 0.97 0.93 (0.04) Indirect result per share (€) (3.73) (1.79) 1.94 Total result per share (€) (2.76) (0.86) 1.90 FY 2020 H1 2021 Change EPRA NTA per share (€) 27.74 26.33 (1.41) Net LTV 46.7% 46.1% -0.6pp NPS (Benelux) +4 +16 +12 P
Slide 3: Highlights H1 2021
Highlights H1 2021 Like-for-like NRI growth positive despite Covid-19 related store closures, lower sales-based rents and variable parking income in the Shopping Centers, and departures in our Belgium Offices Net Rental Income H1 2020 H1 2021 Growth LFL Growth (€ m) Belgium 17.7 19.8 12.2% 12.5% Fra
Slide 4: Key terms French transaction
Key terms French transaction • Assets sold: Docks 76 (Rouen) Docks Vauban (Le Havre) Rivetoile (Strasbourg) Saint Sever (Rouen) • Gross Proceeds: € 305m, including estimated CAPEX of € 5m (implied net yield1) of 7.5%) • Buyer: Lighthouse Capital Limited • SPA Signing: 26 July 2021 • Closing Date: 30
Slide 5: Financial Impact French transaction
Financial Impact French transaction LTV DRPS Full Year Outlook % € 1.80 – 2.00 1.75 – 1.85 -4% -0.13 47% 46% 42% 2021 (Q1 FC) Lighthouse Deal 2021 Post Lighthouse Deal EPRA NTA per Share € 30-40% 26.33 -5.06 21.27 FY 2020 Pre Lighthouse Pro-forma Target Q2 21 Lighthouse Deal Q2 2021 Post Deal 30/06/
Slide 6: French transaction will trigger mandatory USPP prepayment offer
French transaction will trigger mandatory USPP prepayment offer Mandatory prepayments upon disposals to USPP holders (currently € 625m USPP outstanding): • 365 day rolling cumulative disposals up to 20% of consolidated total assets do not trigger prepayments • Any excess of the above should be parti
Slide 7: Disposal Program Benelux finalized
Disposal Program Benelux finalized WoensXL Covid-19 Emiclaer Etten-Leur Koningshoek Announcement of Investment Sold Sold disposal Sold market standstill 2020 2020 2020 2020 2020 2021 2021 Feb Feb-Mar Q2-Q3 H2 Year-end Q1 Q2 4 assets on the Marketing market In de Bogaard 4 assets Initially good inves
Slide 8: Disposals accelerate several of our key strategic objectives
Disposals accelerate several of our key strategic objectives Focus on Target 2020-2022 Phase out France1 4 out of 6 assets sold Divestment program NL / BE Completed Restructuring balance sheet LTV decreased by 4%-points after French transaction FSC concepts, for e.g. entertainment, F&B and fashion,
Slide 9: Operations H1 2021
Operations H1 2021 High contract volume in H1, positive MGR uplift in Belgium & France and three large package deals in The Netherlands with anchor tenants Leasing MGR Country # of Contracts¹) vs ERV Occupancy Rate Volume²) Uplift Belgium 39 6.0% 1.8% 5.2% 96.2% France 32 9.2% 5.2% 0.6% 93.5% Nether
Slide 10: Strong rent collection in Belgium and NL; France awaiting approval of government support scheme
Strong rent collection in Belgium and NL; France awaiting approval of government support scheme Footfall shows sharp rebound in Belgium and France after store reopenings in Q2 Footfall growth versus same period last year, last 52 weeks Rent collection rates H1 20211) 200% 94% 91% 84% 100% 61% 0% 28
Slide 11: Rent collection for H1 2021 rents
Rent collection for H1 2021 rents Invoiced rent for H1 2021 Breakdown open payments Provisioned 33% Received 80% 20% Open Collectable 48% 19% Discount 11
Slide 12: Rent collection & assessment of Covid-19
Rent collection & assessment of Covid-19 € 114.3m -€ 91.3m -€ 12.1m -€ 4.4m € 18.7m -€ 7.7m € 11.0m Invoiced H1 2021 Cash Discounts Under Expected credit loss To be collected (incl. VAT) collected agreed negotiation H1 2021 12
Slide 13: Direct result: impacted by disposals
Direct result: impacted by disposals Lower sales based rents and variable parking income due to Covid-19 in France and Netherlands, offset in France by lower doubtful debt provisions compared to H1 2020 -€ 1.1m € 44.8m -€ 4.3m € 1.2m -€ 0.4m € 43.7m € 0.2m € 3.4m -€ 2.5m € 1.3m Actuals Disposals1) N
Slide 14: Cost efficiency
Cost efficiency Cost Reduction Opportunities Status Phase-out France Four assets sold, annual general cost savings to be implemented in Q1 2022 Changing Headquarters (€ 400k) Starting 2022 / 2023 LifeCentral phase 2 (growth phase) should result in lower cost ratio by realising Screening first acquis
Slide 15: Outlook 2021
Outlook 2021 Outlook for 2021 direct result per share will come out at € 1.75 – 1.85, lower than previous guidance due to -€ 0.13 disposals impact Direct Result per Share Dividend per Share • Without the disposal impact, our guidance would have increased to € € higher end of previous bandwidth 3.45
Slide 16: EPRA NTA
EPRA NTA EPRA NTA declined mainly due to Dutch transfer tax increase (one-off) and realized loss on two Dutch disposals EPRA NTA Bridge: YE 2020 to H1 2021 (€ per share) 0.93 -1.79 27.74 -0.50 -0.12 0.07 26.33 EPRA NTA Direct result Indirect result Dividend Change in NCI Adjustments fair value EPRA
Slide 17: Revaluations
Revaluations Negative revaluations mainly due to the increase in real estate transfer tax in The Netherlands; EPRA NIY declines as a result of yield compression at five assets Value (€ m) Revaluation 2021 H1 EPRA NIY (%) 2020 H2 2021 H1 €m % 2020 H2 2021 H1 Belgium 830 826 (6.1) (0.7%) 5.6% 5.6% Fra
Slide 18: Valuations are stabilizing
Valuations are stabilizing EPRA NIY Wereldhave Shopping Centers % 7.0% • Finally overall portfolio yield stability due to stronger investment market • In Belgium the yield remains stable and has been so since H1 2019 6.0% • In The Netherlands • The yield is decreasing for the first time since H1 201
Slide 19: Yield Compression after LifeCentral Transformations
Yield Compression after LifeCentral Transformations As presented in our 2020 Strategic Review… … we expect yield compression in our portfolio1) -60bps 6.1% 5.5% Current NIY Expected Post-Transformation NIY • Our belief is that transforming our assets to Full Service Centers will lead to yield compre
Slide 20: First pieces of evidence for FSC yield compression
First pieces of evidence for FSC yield compression • Ongoing transformations are providing the first results: ➢ NIY Ring Shopping Kortrijk down by 27bps after start of FSC Transformation Phase 1 ➢ NIY Shopping Belle-Île down by 10bps after finalization FSC Transformation Phase 1 ➢ Remainder of expec
Slide 21: Capital allocation
Capital allocation • Building a rock-solid, efficient balance sheet • Target 30-40% LTV per year end 2022 • Disposing assets • LifeCentral: Investing in a future-proof portfolio • Long-term value creation for shareholders • Transformation towards Full Service Centers • >6% unlevered IRR • Dividend •
Slide 22: LifeCentral CAPEX
LifeCentral CAPEX Investments only done in Total LifeCentral investments1) in NL and BE, excl. FR NL & BE assets with IRRs above threshold of 6.0% € m, 2020-2025 67 64 60 61 56 42 19 41 64 60 61 22 23 15 3 2020 2021 2022 2023 2024 2025 Spent Committed Uncommitted 22 1) Including Maintenance, Custome
Slide 23: LTV Development
LTV Development Next step should come from e.g. last two French disposals, retained earnings, residential gains, equity backed acquisitions Net LTV Development Why we target an LTV of 30-40% -4% • Improves our credit profile and provides sustainable access to 47% 46% credit • Reduces our vulnerabili
Slide 24: Debt Profile
Debt Profile Q4 2020 Q2 2021 Covenants Policy Interest bearing debt1) (€) 1,254m 1,122m Average cost of debt 1.9% 1.9% Undrawn committed (€) 306m 271m Cash position (€) 67m 14m Fixed vs floating debt 69% / 31% 66% / 34% min. 50% fixed Gross LTV2) 50.9% 50.0% ≤ 60% Net LTV 46.7% 46.1% 30% - 40% ICR 5
Slide 25: Debt Mix
Debt Mix € 202m in new financing and refinancing Q4 2020 Q2 2021 arranged in H1 2021 • The Green Revolving Credit Facility with ABN 7% 9% AMRO was amended and extended. The 3% amount was reinstated at € 120m and the term was extended to 1 July 2024 • Wereldhave Belgium 36% € 1,254m € 1,122m 57% 32%
Slide 26: Debt Expiry Profile
Debt Expiry Profile Post French transaction, our available liquidity covers debt maturities until Q1 2024 400 350 300 250 200 €m 150 100 50 0 Drawn Undrawn Drawn Undrawn Drawn Undrawn Drawn Undrawn Drawn Undrawn Drawn Undrawn 2021 2022 2023 2024 2025 > 2025 Commercial Paper Bank loans Private Placem
Slide 27: We will deliver on our ambitions
We will deliver on our ambitions Focus on Target 2020-2022 Progress 02/21 07/21 Phase out France1) Phase out France Divestment program NL / BE Dispose assets with book value of € 225m - € 275m Restructuring balance sheet Lower LTV to 30-40% FSC concepts, for e.g. entertainment, F&B and fashion, comp