Wereldhave N.v. · EURONEXT:WHA
Wereldhave — H1 2023 Earnings Presentation
46 slides from Wereldhave's earnings presentation, 2023
Slide 1: Wereldhave
Wereldhave
Slide 2: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. Management Agenda 6. Appendices Wereldhave
Slide 3: Key Messages
Key Messages LFL net rental growth core portfolio 10% driven by full pass through of indexation Dutch assets revalued by +3%, lifted by outperformance of completed Full Service Centers Slight increase in LTV after dividend and front-loaded capex; reduction in H2 Reorganization completed, enabling mo
Slide 4: H1 2022 H1 2023 Change
H1 2022 H1 2023 Change Direct result per share (€) 0.81 0.89 0.08 Indirect result per share (€) 0.03 0.40 0.37 Total result per share (€) 0.84 1.29 0.45 FY 2022 H1 2023 Change EPRA NTA per share (€) 21.73 21.85 0.12 Net LTV 42.4% 43.9% 1.5pp NPS (Benelux) +24 +25 1 Proportion of mixed-use Benelux (i
Slide 5: Highlights H1 2023
Highlights H1 2023 LFL NRI growth driven by indexation, lower energy costs and sales-based rents Like-for-Like Net Rental Income Growth H1 2023 vs. H1 2022; % 271% 12.5% 10.5% 10.2% - i LJ L (11.3%) Office Belgium Total Wereldhave Belgium Netherlands Core Portfolio France
Slide 6: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. Management Agenda 6. Appendices Wereldhave
Slide 7: Leasing contracts by country
# of Leasing Occupancy Country MGR Uplift3) vs ERV Contracts1) Volume2) Rate Belgium 34 4.9% 1.4% 9.1% 96.4% Netherlands 46 5.9% (4.9%) 9.0% 95.6% Core Portfolio 80 5.4% (2.4%) 9.0% 96.0% France 4 1.5% 13.1% 11.0% 94.6% Total 84 5.1% (2.3%) 9.1% 95.8%
Slide 8: KPIs by asset type
KPI Full Service Center In Transformation Shopping Center # Assets 5 6 6 Mixed Use Percentage 16% 16% 9% MGR Uplift1) (0.4%) (6.2%) (0.7%) MGR vs. ERV +10.4% +8.4% +7.3% Tenant Sales vs. 2022 +12.4% +10.2% +12.1% Footfall vs. 2019 +22.6% (5.5%) (2.3%) Direct Result 6.4% 6.2% 6.9% Valuation Result 2.
Slide 9: Footfall continuous to improve
Footfall continuous to improve Footfall growth vs. same period 2019: Belgium H1 2023; % 20 January February March April May June — Wereldhave Belgium — Belgium SC Market © Footfall growth vs. same period 2019: Netherlands H1 2023; % 20 January February March April — Wereldhave NL — NL Retail Market
Slide 10: Tenant Sales
Tenant Sales 11.5% increase in tenant sales versus 2022) Tenant sales 2023 vs. 2022: Belgium?) H1 2022 & H1 2023; % Impacted by 26%| Delhaize strikes in Nivelles and Tournai 10% yl 5% 1%), = Wereldhave Fashion Food & Groceries Health € Homeware Multimedia Shoes Belgium Beverage Beauty & & Household
Slide 11: LifeCentral Strategy makes WH more resilient in an uncertain macro environment
LifeCentral Strategy makes WH more resilient in an uncertain macro environment 2019 2020 2021 2022 H1 2023 % of rent % of rent % of rent % of rent % of rent &’®’se’rP So Total Daily Total Daily Total Daily Total Daily 2 Life: 51% = Life: 53% ] Life: 62% _ Life: 64% ‘ ND ” 8% 9% 28 8 1% 13% 5% 8% Dai
Slide 12: Benelux update
RITUALS... | Benelux update Belgium * 34 Retail deals signed, 9.1% above ERV and 1.4% above previous rent on average, for example: * Tournai- Shopping Bastions: Basic-Fit * Ring Kortrijk: Casa, Rituals, Press Shop, Bubble Bar, Claire’s * Genk - Shopping 1: Sports Direct, Dunkin Donuts, Calzedonia/In
Slide 13: OCRs NL stable due to rising sales and rent levels
OCRs NL stable due to rising sales and rent levels, both driven by inflation, OCRs BE slight increase OCR Wereldhave Belgium” OCR Wereldhave NL?) H1 2023, LTM; % H1 2023, LTM; % 15% 14% 7 [1 4 Wereldhave Fashion Food & | Health & Homeware Mutimedia Shoes Wereldhave Fashion Food & 1 Health & Homeware
Slide 14: Direct result
Direct result 10% increase in Direct Result Actuals NRI Netherlands NRI NRI General Interest Actuals H1 2022 Belgium France Cost H1 2023 m Wereldhave
Slide 15: Majority of planned cost savings realized
Majority of planned cost savings realized and efficiency of organization further improved Cost savings program Direct GENEX + Wereldhave staff aligned with smaller asset base + Wereldhave head office moved to a cheaper location More efficient organization + Wereldhave Holding and Wereldhave NL integ
Slide 16: Outlook 2023 DRPS at € 1.65 — 1.75 re-confirmed
Outlook 2023 DRPS at € 1.65 — 1.75 re-confirmed Direct Result per Share Dividend per Share € € 2.01 1.16 188 110 163 1.65175 / 0.50 2020 2021 2022 2023FC 2020 2021 2022 ‘6 Wereldhave
Slide 17: DRPS Growth 2023 — 2027
DRPS Growth 2023 — 2027: Higher indexation, but also higher financing costs Expected average annual DRPS Growth 2023 — 2027 9, % The 2023 — 2027 growth comes from multiple drivers + Leasing contracts indexed annually with inflation, we use 4.5% in our 4.5% forecasts * Additional rental income mainly
Slide 18: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 4. Financing & Valuations 5. Management Agenda 6. Appendices Wereldhave 18
Slide 19: LifeCentral progress H1 2023
LifeCentral progress H1 2023 + Four ongoing transformations reaching completion, still within timelines and budget * Organization further streamlined to execute LifeCentral more effectively across both countries * Customer Experience restructured after completion of elements like Every.deli, The Poi
Slide 20: FSC Sterrenburg
FSC Sterrenburg KPIs expected already delivering, further increase on key Total Return Yield NPS Mixed Use % %, Net % of floor space 10.6% 5.8% 5.6% 7 19% 6.0% 8 10% Target H1 2023" Pre Jun-23 Pre Jun-23 Pre Jun-23 transformation transformation transformation GRI Annualized Footfall Occupancy em m,
Slide 21: FSC Presikhaaf pre-transformation vs transformation
Pre-Transformation situation FSC Presikhaaf GRI (€ m) 3.6 GRI (€ m) 4.7 Discount rate 5.9% Discount rate 5.7% Long-term rental growth 0.0% Long-term rental growth 1.0% CAPEX (€ m) 5 CAPEX (€ m) 25 Residual net asset value Residual net asset value 56 95 (10yrs, € m) (10yrs, € m) Unlevered IRR 5.1% Un
Slide 22: FSC Transformation Vier Meren, Hoofddorp
FSC Transformation Vier Meren, Hoofddorp A Full Service Center with the right retail balance and extensive mixed use offerring, focused on F&B and Leisure 22 Main construction works finalized 1 May 2023 * New entrance opened * Majority of units delivered and some tenants already opened Full opening
Slide 23: FSC Transformation De Koperwiek, Capelle a/d IJssel
FSC Transformation De Koperwiek, Capelle a/d lJssel A Full Service Center with a broad convenience offering, combined with extensive F&B offering and a gym Work-in-progress: * Extension to implement our F&B cluster concept Eat&meet — delivery planned for second half of September 2023 and opening pla
Slide 24: FSC Transformation Eggert Center, Purmerend
FSC Transformation Eggert Center, Purmerend A Full Service Center in the inner city with a good retail mix combined with a fresh cluster, F&B and a gym Key items transformation * Full renovation of the first floor: * F&B cluster according to our Eat&meet concept + New Play & Relax and Public Seating
Slide 25: FSC Transformation Genk Shopping 1, Genk
FSC Transformation Genk Shopping 1, Genk A Full Service Center with a strong retail mix, combined with extensive F&B offering and a gym Key items already realized: + F&B cluster according to our Eat&meet concept with seven F&B tenants opened in H1 2023 + Large The Point service hub opened end of 202
Slide 26: LifeCentral CAPEX program on track
LifeCentral CAPEX program on track Investments only done in -| NL & BE assets withIRRs. Total LifeCentral investments” in NL and BE, excl. FR ~~~ above threshold of 7.0% € m, 2020-2025+ 291 Other CAPEX (France and smaller 178 projects): € 8m LifeCentral CAPEX Spent 2020-2023 H1 Remaining 2023 H2 202
Slide 27: Continued evidence for FSC yield compression
Continued evidence for FSC yield compression Yield compression since start of FSC Transformation bps Vier Meren (88) Cityplaza Eggert Kronenburg DE KOPERWIEK Presikhaaf Sterrenburg NL Market Yield? 70 Shopping Belle-le Ring Kortrijk BE Market Yield?) 70 27
Slide 28: Delay and expected decrease in residential profits
Delay and expected decrease in residential profits due to current macro environment Development of residential units # Units Brugge 1) In Progress Middenwaard , Il Early Stage Tilburg Kronenburg Winkelhof Total: 1,200 - 1,600 units Waterloo Koperwiek 28 Residential profit reduced to € 0.50-0.80/shar
Slide 29: Relative performance since LifeCentral launch
Relative performance since LifeCentral launch Total Return Cumulative total shareholder return index; 7 February 2020 — 10 July 2023 150 Peer 1 / Wereldhave y Peer 2 100 \ Peer 3 Peer 4 Peer 5 50 Peer 6 Oo QV/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 QV/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 sin
Slide 30: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 5. Management Agenda 6. Appendices Wereldhave 30
Slide 31: Value, Revaluation H1 2023, EPRA NIY
Value (€ m) Revaluation H1 2023 EPRA NIY (%) Country FY 2022 H1 2023 €m % FY 2022 H1 2023 Belgium 849 850 (3.8) (0.4%) 6.2% 6.4% Netherlands 876 929 24.8 2.7% 6.9% 6.3% Core Portfolio 1,725 1,779 21.0 1.2% 6.6%1) 6.3%1) France 175 179 (2.7) (1.5%) 4.7% 4.7% Offices Belgium 100 102 1.1 1.0% 6.9% 7.5%
Slide 32: Net LTV Target
Net LTV Target Net LTV 42.4% 43.9% 35-40% FY 2022 H1 2023 Target 32 1) Assuming stable valuations LTV increased to 43.9% in H1 2023 * Dividend paid of € 1.16 per share * Significant part of 2023 CAPEX spent in H1 LTV will reduce in H2 20231) * CAPEX spending in H2 will be limited + Retained earnings
Slide 33: Debt and covenant overview
Q4 2022 Q2 2023 Covenants Comments Debt increased following FSC capital expenditure and Interest bearing debt1) (€) 859m 921m dividend payments Cost of debt increased following refinancings at Average cost of debt 2.5% 3.0% higher spreads, and risen benchmark rates Net LTV increased following FSC ca
Slide 34: First new USPP debt since 2017
First new USPP debt since 2017 Q4 2022 Q2 2023 Ml uspP 1) Bank loans (incl. RCF) HN Commercial Paper Ml Bonds Refinancing with $ 50m new USPP Drawn Undrawn Drawn Undrawn Drawn Undrawn Drawn Undrawn 2023 2024 2025 2026 Mil uspp (il rcF Ill Bonds aa ) Bank Loans [J Commercial Paper Drawn Undrawn 2027
Slide 35: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. Management Agenda 6. Appendices Wereldhave w
Slide 36: Management Agenda
Management Agenda Focus on Focus on earnings & dividend growth Target 2022-2024 4-6% CAGR as of 2023 Current Status 4-6% average growth as of 2023 Focus on Total Return Exceed 8% annualized Total Return (Levered) H1 2023: 9.9% Successful FSC transformation Transformed 9 assets to FSC and started 4 a
Slide 37: Table of contents
Table of contents 1. Key Messages & Highlights 2. Results 3. LifeCentral 4. Financing & Valuations 5. Management Agenda 6. Appendices Wereldhave 37
Slide 38: Key Facts
Key Facts Number of retail assets 22 Average size 28,200 m² Number of shopping center 43.8 m visitors (H1 2023) Net loan-to-value ratio 43.9 % Occupancy shopping 95.8 % centers 9 EPRA NIY shopping centers 6.2 % WALT1) 5.1 years Development pipeline2) € 37 m 6
Slide 39: Portfolio split by country
Offices 5% Netherlands Belgium 45% 46% Retail Assets 95% France 9%
Slide 40: Top 10 Tenants
Top 10 Tenants % of annualized rent Homeware & Services Other Ahold Delhaize 6.1 % Household 1.0% 0.2% 9.7% Jumbo Group 4.2 % Sports 2.7% Fashion & C&A 3.4 % Accessoires Health & Beauty 31.4% A.S. Watson Group 3.0 % 11.4% Carrefour 2.3 % Mirage Retail Group (Blokker) 2.1 % H&M 1.8 % Special Goods &
Slide 41: Like-for-like growth by country
36.1% 34.3% 27.1% 23.2% 17.7% 17.0% 15.1% 14.4% 13.7% 12.5% 12.5% 11.4% 7.9% 9.1% 5.6% 6.0% 4.3% -0.7% (3.5%) -9.4% Belgium France Netherlands Shopping centres H1 2021 FY 2021 H1 2022 FY 2022 H1 2023
Slide 42: Occupancy rates
Occupancy rates EPRA Occupancy rate Shopping Centers (3%) 977% ((2.6%)) Belgium France The Netherlands Shopping centers MMFY 2021 9) H1 2022 BE FY 2022 MM H12023 2 Wereldhave
Slide 43: Footfall
Footfall Change in visitors versus the same period previous year (%) 34% 20% 20% 19% 23% 1% 12% 8% [| gf (8%) I (20%) (29%) (ste) H1 2020 H1 2021 H1 2022 H1 2023 43. Note: 2020, 2021 and 2022 influenced by Covid Measures Ml Belgium Mil France [i Netherlands [J Full Service Centers Wereldhave
Slide 44: EPRA NTA
EPRA NTA EPRA NTA Bridge: YE 2022 to H1 2023 (€ per share) 0.40 (116) EPRA NTA YE 2022 44 Direct result Indirect result Dividend Other EPRA NTA H1 2023 Wereldhave
Slide 45: EPRA Value metrics are defined in the EPRA BPR Guidelines
EPRA Value metrics are defined in the EPRA BPR Guidelines dated February 2022
Slide 46: better ev
better ev e r