Slide 1: Wereldhave results Full Year 2019
Wereldhave results Full Year 2019 7 February 2020
Slide 2: Table of contents
Table of contents 1. Introduction 2. Operations 3. Financials 4. Country updates 5. Outlook Appendices 2
Slide 3: Company Profile: Key Facts
Introduction Company Profile Key Facts Number of shopping centres 31 Average size 27,300 M2 Number of shopping centre 135.5 M visitors (2019) 16 Loan to value ratio 44.8 % 9 Occupancy shopping centres 94.8 % 6 EPRA NIY shopping centres 5.8 % WALT1 4.9 years Development pipeline 2 114 M 1 Lease end d
Slide 4: Company Profile: Portfolio Breakdown
Introduction Company Profile Portfolio Breakdown Portfolio Breakdown Offices 3% Belgium 33% Netherlands 39% € 2.9 bn € 2.9 bn Shopping centres France 97% 28% 4
Slide 5: Highlights 2019
Highlights 2019 2018 2019 Change Direct result per share 1 2.62 2.81 7.3% Indirect result per share 1 (2.52) (10.99) 336.1% EPRA NAV per share 43.82 32.99 (24.7%) Dividend per share 2.52 2.52 0.0% Total return per share (3.66) (8.31) 127.0% LTV 37.5% 44.8% +7.3pp NPS N.A. -7 N.A. 1 Continuing operat
Slide 6: Highlights FY 2019
Highlights FY 2019 Net Rental Income (€ m) 2018 2019 Growth LFL Growth Remarks Growth impact from the acquisition Belgium 40.5 46.4 14.6% 0.8% of Brugge and Turnhout (Dec18) France 39.2 38.5 (1.8%) (1.0%) Bankruptcy effects Netherlands 79.4 80.0 0.8% (1.0%) Bankruptcy effects Shopping centres 159.1
Slide 7: Operations
Operations 1. Introduction 2. Operations 3. Financials 4. Country updates 5. Outlook Appendices 7
Slide 8: Leasing performance summary
Operations Leasing performance summary # of Leasing MGR Occupany LFL Rent Country Vs. ERV Remarks Contracts Volume Uplift Rate Growth Belgium 66 10.5% 7.2% 2.4% 96.3% 0.8% France 50 9.4% (5.6%) (1.4%) 92.8% (1.0%) Occupancy includes Netherlands 246 21.2% (6.7%) (1.1%) 95.1% (1.0%) Hudson’s Bay as va
Slide 9: Financials
Financials 1. Introduction 2. Operations 3. Financials 4. Country updates 5. Outlook Appendices 9
Slide 10: Net Rental Income
Net Rental Income Net Rental Income increased due to acquisitions in Belgium and The Netherlands Net Rental Income Bridge Continuing Operations (€ m) €5.1m €171.5 €0.9 (€1.6) €1.7 €5.0 €166.4 (€0.9) Actuals Disposals NL Acquisitions retail Indemnities Like-For-Like Other Actuals YTD 2018 and Belgium
Slide 11: EPRA Earnings (direct result)
EPRA Earnings (direct result) Direct Result Bridge from continuing operations (€ m) +€10.6m €1.2 €128.6 (€0.4) €4.7 €0.6 (€0.7) €5.2 118.0 Actuals NRI Belgium NRI Netherlands NRI France Net Interest General Cost Tax Actuals YTD 2018 YTD 2019 11
Slide 12: EPRA NAV
EPRA NAV NAV Declined mainly due to negative revaluations EPRA NAV Bridge: 2018 to 2019 (€ per Share) €43.82 €2.81 (€10.98) (€2.52) (€0.14) €32.99 YE 2018 Direct result Indirect result Dividend FV derivatives YE 2019 and deferred tax 12
Slide 13: Revaluations
Revaluations Negative revaluations in the Netherlands and France Value (€ m) Revaluation 2019 EPRA NIY (%) 2018 2019 €m % 2018 2019 Belgium 862 869 (14) (1.6%) 5.5% 5.6% France 879 806 (88) (9.8%) 4.7% 4.6% Netherlands 1,445 1,139 (343) (23.1%) 5.6% 6.8% Shopping centres 3,186 2,815 (444) (13.6%) 5.
Slide 14: Debt Profile
Debt Profile 2018 2019 Covenants Policy Interest bearing debt1 (€) 1,362m 1,337m Average cost of debt 2.08% 1.89% Undrawn committed (€) 430m 220m Cash position (€) 126m 21m Fixed vs floating debt 97% / 3% 77% / 23% min. 50% fixed LTV 37.5% 44.8% ≤ 60% 30% - 40% ICR 6.2x 6.6x >2.0x >2.0x Debt maturit
Slide 15: Debt Mix
Debt Mix Q4 2018 Q4 2019 Bank loans Bank loans EMTN (incl. RCF) (incl. RCF) 1% 21% 36% Treasury notes 7% • Repayment of € 56m USPP in Convertible bond February 18% € 1,362m € 1,337m EMTN • Repayment of the € 250m convertible 1% Treasury Notes bond in May 2019 3% USPP 57% USPP 56% • Credit rating by
Slide 16: CSR: Long-term Sustainable Value Creation
CSR: Long-term Sustainable Value Creation GRESB Carbon Disclosure BREEAM EPRA sBPR ISS-oekom Five stars Project very good or higher Gold 6th year in a row 2012 - 2019 77% of enclosed 4th year in a row Prime Status centres ESG industry leader 16
Slide 17: Country updates
Country updates 1. Introduction 2. Operations 3. Financials 4. Country updates 5. Outlook Appendices 17
Slide 18: Belgium
Belgium • Disposal of 2,000 sqm student apartments in Gent, at latest book value of € 7.5m, effective per Q1 2020 • Belle-Île (Liège) selected as first transformation project to Full Service Center, as part of our LifeCentral program • Refurbishment & extension • Leisure, F&B and co-working space to
Slide 19: Belle-Île to become the first Full Service Center
Belle-Île to become the first Full Service Center Total investment: € 47m YoC: 6.0%-6.5% Pre-let rate: 50%1 Completion: 2022 191 Based on previous extension plans
Slide 20: Belgium Footfall, Tenant Sales, Occupancy
Belgium Footfall Growth Tenant Sales Growth 1.5% 7.6% 6.5% 1.1% • Footfall growth shows a continued signficant outperformance versus the 4.9% 4.4% market • Tenant sales in our centers show an increase of 1.1% compared to last year 1H18 2H18 1H19 2H19 2018 2019 Market: (0.9%) Update on Carrefour Occu
Slide 21: Belgium LFL NRI Growth and Outlook 2020
Belgium LFL NRI Growth1 Change in MGR Rotations & Renewals Indexation: 1.5% 7.2% 1.9% 0.8% Outlook 2020 0.3% 4.9% We expect NRI to decline by 5%, consisting of: • € -1.9m (-3.6%) in one-off effects in 2019 that are not expected for 2020, related to Carrefour (Belle-Île & (3.4%) 1H18 FY18 1H19 FY19 2
Slide 22: France
France 22
Slide 23: France Footfall, Tenant Sales, Occupancy
France Footfall Growth Tenant Sales Growth 1.2% • Strong footfall increase in nearly all centers. Particularly in Saint- Severdue to the opening of La 3.4% Verrerie 1.4% • Sales growth outperformed the 1.1% market, due to the strong growth of sales in Saint Sever (positive impact (0.4%) Market: (0.3
Slide 24: France LFL NRI Growth and Outlook 2020
France LFL NRI Growth Change in MGR Rotations & Renewals Indexation: 2.3% Outlook 2020 0.9% (1.0%) We expect about 14% NRI decline (1.5%) • Renegotiation with several fashion retailers will negatively impact LFL rental growth in 2020 (3.5%) (3.9%) • ca. -10% is LFL effect (5.6%) 1H18 FY18 1H19 FY19
Slide 25: Netherlands
Netherlands • Plans are being made for Vier Meren in Hoofddorp to become the first Full Service Center in the Netherlands • Demolition & reconstruction of Emmapassage • Large fashion anchor LOI signed for Emmapassage in Tilburg in January 2020 • Started with the redevelopment of Sterrenburg (Dordrec
Slide 26: Netherlands Footfall and Occupancy
Netherlands Footfall Growth Footfall & occupancy • Footfall growth remains positive 1.1% • Retailer bankruptcies main reason for 0.1% 0.2% occupancy decline during H2 (CoolCat, Hudson’s Bay, -1.5% Market: (0.4%) SportsWorld) 1H18 2H18 1H19 2H19 • Hudson’s Bay: • Q4 occupancy takes into account Occup
Slide 27: Netherlands LFL NRI Growth and Outlook 2020
Netherlands LFL NRI Growth Change in MGR Rotations & Renewals Indexation: 2.1% 2.0% (0.2%) Outlook 2020 1.5% • We expect about 10% NRI decline 1.0% • ca. -7% is LFL effect, which includes the impact from Hudson’s Bay (- 1.7%) and renegotiations with H&M (-2.2%) (6.7%) (1.0%) • Ca. -3% is non-LFL, wh
Slide 28: Outlook
Outlook 1. Introduction 2. Operations 3. Financials 4. Country updates 5. Outlook Appendices 28
Slide 29: Outlook
Outlook Forecast EPRA EPS 2020: € 2.35 to € 2.45 per share, DPS at € 1.76 Expected decline (mid-range) is EPRA EPS per share Dividend per share mainly due to: • NRI: €-0.38/sh €3.45 €3.01 €3.08 €3.08 • Interest cost & tax: € -0.03/sh €3.23 €3.43 €3.33 €2.81 €2.52 €2.52 €2.35 - €2.45 Dividend per sha
Slide 30: Final remarks
Final remarks • First transformation strategy in European Retail Real Estate • LifeCentral is the program to transform our assets to Full Service Centers • Reduce LTV to 30-40% by phasing out France and divesting other non-core assets • Expected 2020 EPRA EPS € 2.35-2.45 and dividend set at € 1.76 p
Slide 31: Q&A
Q&A 31
Slide 32: Appendices
Appendices 1. Introduction 2. Operations 3. Financials 4. Country updates 5. Outlook Appendices 32
Slide 33: Top Properties
Top 10 Properties Value per December 2019 1 2 3 4 5 Liège Tournai 1 Nivelles Rouen Nieuwegein €192m / 30,000m² €181m / 44,400m² €174m / 29,100m² €171m / 31,000m² €167m / 50,400m² 6 7 8 9 10 Rouen Strasbourg Kortrijk Heerhugowaard Arnhem €158m / 37,100m² €157m / 28,500m² €119m / 32,300m² €117m / 36,1
Slide 34: Tenant mix shopping
Tenant mix shopping Top-10 tenants Contract rent by category1 Other 0.5% Tenant1 % of annualised rent Mixed-Use 13.1% Travel & Finance Services Ahold Delhaize 4.2 % 1.4% Sport H&M Group 2.9 % 3.0% Fashion & Accessoires Special Goods & 37.1% C&A 2.6 % Others 4.0% Blokker Group 2.2 % Shoe & Leatherw a
Slide 35: LFL NRI Growth
LFL NRI Growth LFL NRI Growth (% YOY) 2.3% 2.0% 2.1% 2.0% 1.9% 1.5% 1.5% 1.0% 0.8% 0.8% 0.3% 0.1% (0.6%) (1.0%) (1.0%) (1.3%) (1.5%) (3.4%) (3.5%) (3.9%) Belgium France Netherlands Shopping centres H1 2018 FY 2018 H1 2019 FY 2019 Indexation FY 2019 35
Slide 36: Growth in all Countries: Occupancy
Growth in all Countries Occupancy EPRA Occupancy Rate Shopping Centres 97.2% 97.1% 97.2% 96.7% 96.8% 96.2% 96.3% 96.1% 96.3% 95.6% 95.1% 94.8% 94.0% 93.6% 92.8% 92.0% Belgium France Netherlands Shopping centres H1 2018 FY 2018 H1 2019 FY 2019 36
Slide 37: Footfall
Footfall Positive visitor growth in all countries 12M Change in Visitors (%) 7.6% 6.5% 4.9% 4.4% 3.4% 1.4% 1.4% 1.1% 1.1% 1.0% 1.1% 0.6% 0.3% 0.1% 0.2% (0.4%) (0.4%) (0.5%) (0.9%) (1.5%) Belgium France Netherlands Shopping centres H1 2018 FY 2018 H1 2019 FY 2019 Market 2019 37
Slide 38: Tenant Sales
Tenant Sales Like-for-Like 12M Tenant Sales 2.7% 1.5% 1.1% 1.2% 1.2% 0.0% -2.0% -2.1% -4.4% Belgium France Shopping centres 2018 H1 2019 FY 2019 38
Slide 39: Like-for-Like Tenant Sales by Branche (% yoy)
Like-for-Like Tenant Sales by Branche (% yoy) Excluding Hyper/Supermarkets Belgium France Total Fashion & accessories 0.6 % 0.4 % 0.5 % Food 4.6 % 2.2 % 3.0 % Health & beauty 1.1 % 1.0 % 1.1 % Homeware & household 0.2 % 1.1 % 0.6 % Multimedia & electronics 7.2 % 2.2 % 5.2 % Services 2.2 % 6.6 % 6.0
Slide 40: Revaluation
Revaluation Rents & Yield Shift Breakdown of Valuation Result Belgium (1.1%) (0.5%) France (12.9%) 3.1% Netherlands (12.1%) (11.0%) Shopping centres (9.3%) (4.3%) Belgium offices (5.3%) 1.5% Total Portfolio (9.2%) (4.2%) Yield shift Market rent & other 40
Slide 41: Key development projects
Key development projects Total Capex Spent Capex Spent Planned (In € m) Yield on Cost Pre-let Rate Investment (Net) 2019 Delivery Koperwiek 36 31 6 5.0 % - 5.5 % 91 % 2020 Presikhaaf 23 21 4 5.75 % - 6.25 % 96 % 2020 Sterrenburg 14 4 1 5.25 % - 5.75 % 90 % 2021 Tilburg 18 4 7 5.0 % - 5.5 % 18 % 2022
Slide 42: Reconciliation of EPRA NAV
Reconciliation of EPRA NAV EPRA NAV Bridge: 2018 to 2019 (In € per Share) €32.99 €32.78 €0.21 (€1.18) €31.81 IFRS NAV EPRA adjustments EPRA NAV Triple adjustment EPRA NNNAV 42