Slide 1: Results FY 2020
Results FY 2020 February 12, 2021
Slide 2: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Values & Disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices 2
Slide 3: Introduction: Company Profile Key Facts
Introduction Company Profile Key Facts Number of shopping centers 28 Average size 28,100 m² Number of shopping center 99.9 m visitors (2020) Net loan to value ratio 46.7 % Occupancy shopping centers 95.0 % 9 EPRA NIY shopping centers 5.9 % WALT1) 5.2 years Development pipeline2) € 64 m 1) Lease end
Slide 4: Company Profile FY 2020: Portfolio Breakdown by value
Introduction Company Profile FY 2020 Portfolio Breakdown by value Portfolio Breakdown by value Offices 4% Netherlands Belgium 37% 36% € 2.6bn € 2.6bn Shopping centers France 96% 27% 4
Slide 5: Covid-19 confirms the need for transformation
Covid-19 confirms the need for transformation Rationale LifeCentral Strategy Impact Covid-19 LifeCentral Actions • Decrease in retail floor space • Trend accelerated, not magnified • Increase mixed use share • Transformation to residential • Convenience retail resilient • Convenience performing stro
Slide 6: Outlook 2022: trough direct result per share re-iterated at € 1.40-1.50
Outlook 2022: trough direct result per share re-iterated at € 1.40-1.50 • Underlying NRI assumptions roughly unchanged • Continued cost savings program resulting in lower cost base (+) • € 270m refinancing in 2020 resulting in lower projected cost of debt (+) • Potential additional disposals assumed
Slide 7: Highlights FY 2020
Highlights FY 2020 FY 2019 FY 2020 Change Direct result per share 2.81 2.01 (0.80) Indirect result per share (10.98) (6.66) 4.32 EPRA NTA per share 32.97 27.74 (5.23) Dividend per share, full year 1.89 0.50 (1.39) Total result per share (8.17) (4.65) 3.52 Net LTV 44.8% 46.7% +1.9pp NPS (Benelux) 0 +
Slide 8: Highlights FY 2020: NRI significantly impacted by pandemic
Highlights FY 2020 NRI significantly impacted by pandemic Net Rental Income 2019 2020 Growth LFL Growth (€ m) Belgium 46.4 36.9 (20.5%) (19.1%) France 38.5 22.7 (41.0%) (39.7%) Netherlands 80.0 66.8 (16.5%) (12.0%) Shopping centers 164.9 126.5 (23.3%) (21.0%) Offices Belgium 6.6 6.5 (1.5%) (1.5%) To
Slide 9: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Values & Disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices 9
Slide 10: Operations FY 2020
Operations FY 2020 High contract volume and improved occupancy versus 2019 despite pandemic Leasing MGR Occupancy LFL Rent Country # of Contracts vs ERV Volume Uplift Rate Growth Belgium 92 14.1% 0.5% 7.0% 94.4% (19.1%) France 52 14.5% (6.5%) (2.5%) 92.8% (39.7%) Netherlands 242 22.0% (4.7%) 6.4% 96
Slide 11: Fair support policy led to a strong rent collection of 94%
Fair support policy led to a strong rent collection of 94% Footfall development illustrates lockdowns Footfall development Rent collection rates FY 20201) 40% 100% 97% 95% 94% 20% week 86% 0% 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 -20% -40% 75% -60% -80% -100% 50%
Slide 12: Rent collection for FY 2020 rents
Rent collection for FY 2020 rents Invoiced rent for FY 2020 Breakdown open payments Received Collectable 89% 17% Open Uncollectable 11% 42% Discount 41% 12
Slide 13: Rent collection & assessment of Covid-19
Rent collection & assessment of Covid-19 € 260.8m -€ 231.9m -€ 24.0m -€ 11.9m € 17.0m -€ 12.1m € 4.9m Invoiced 2020 Cash Discounts Under Expected credit loss To be collected (incl. VAT) collected agreed negotiation 2020 2021 13
Slide 14: Belgium
Belgium Footfall (yoy) Change in MGR Rotations & Renewals 40% 7.2% 20% week 0% • 92 leasing deals signed +7.0% 8 18 28 38 48 -20% above ERV on average -40% • Leasing examples: -60% -80% • Belle-Île: Superdry, Holland & 0.5% Barrett -100% 2019 2020 • Nivelles: Jack & Jones, Courir • Tournai: Holland
Slide 15: France
France Footfall (yoy) Change in MGR Rotations & Renewals 0% 8 18 28 38 48 -10% week • 52 leasing deals signed 2.5% below -20% ERV on average -30% -5.6% -6.5% -40% -50% • Saint-Sever renovation completed -60% -70% -80% • Large floor areas leased out totalling -90% 44,500 m² -100% 2019 2020 Leasing ex
Slide 16: Netherlands
Netherlands Footfall (yoy) Change in MGR Rotations & Renewals 20% week 10% 0% 1 11 21 31 41 51 • 242 leasing deals signed +6.4% -10% -20% above ERV -30% -40% • Sterrenburg extension started -50% -4.7% • New Jumbo Foodmarkt and Lidl as -60% anchors -70% -6.7% • Scheduled opening Q2 2022 2019 2020 Lea
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Slide 18: Recovery post lockdown can be strong
Recovery post lockdown can be strong Local shopping centers have shown a strong recovery in visitor numbers Footfall development per week - % change 2020 vs 2019 20.0% 1st 0.0% -20.0% -40.0% -60.0% Source: Wereldhave data 18
Slide 19: Strategic initiatives are paying off
Strategic initiatives are paying off Increased food offer and new services give a boost to footfall # of weekly visitors per m² Strategic & Full Service Center initiatives Jan-2021 10.0 • Lockdown allowed Wereldhave to measure the unique footfall attraction of our food retailers • Food & grocery sto
Slide 20: Strong growth in sharing sales-data in Dutch portfolio
Strong growth in sharing sales-data in Dutch portfolio Turnover information sharing increased from 32% to 46% Sales data knowledge enables us to create strategic Turnover sharing in the Netherlands success • Measuring success of Wereldhave FSC concepts / 46% services • Analyzing synergies between FS
Slide 21: Direct result: negative impact from Covid-19
Direct result: negative impact from Covid-19 Higher doubtful debts, and in Belgium & France lower sales-based-rent and lower parking income -€35.7m €128.6m -€2.4m -€18.9m -€3.0m -€3.1m -€11.1m €2.8m -€0.5m €0.5m €92.9m Actuals Disposal Doubtful debt NRI NRI NRI General Net interest Tax Actuals 2019
Slide 22: Cost efficiency
Cost efficiency • Reduced direct general expenses in 2020 by 20% Future cost reduction should come from to € 11.4m • Phase-out France (2020: € 2.6m) • € 1.6m one-off benefits included • Changing headquarters (€ 400k) • 2021: roughly in-line with 2020 by continued • LifeCentral phase 2 (growth phase)
Slide 23: Outlook 2021
Outlook 2021 Direct result per share 2021: € 1.80-2.00 per share, after all Dutch disposals, no further lockdowns Assumed forced store closure Direct result per share Dividend per share periods non-essential stores 2021 • Belgium: only F&B (31 Mar) & €3.45 €3.08 €3.08 hairdressers (28 Feb) €3.43 €3.
Slide 24: EPRA NTA
EPRA NTA EPRA NTA declined mainly due to negative revaluations EPRA NTA Bridge: FY 2019 to FY 2020 (€ per share) 2.01 -6.66 32.99 -0.01 -0.01 32.97 -0.63 0.01 0.04 27.74 EPRA NAV Exclude intangibles Exclude 50% EPRA NTA Direct result Indirect result Dividend Change in Adjustments fair EPRA NTA H2 20
Slide 25: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Values & Disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices 25
Slide 26: Revaluations
Revaluations Negative revaluations in all countries as a result of yield shifts and reduced ERVs Value (€ m) Revaluation 2020 FY EPRA NIY (%) 2019 2020 €m % 2019 2020 Belgium 869 830 (55.4) (6.3%) 5.6% 5.6% France 806 691 (122.0) (15.0%) 4.6% 4.9% Netherlands 1,139 966 (112.9) (10.5%) 6.8% 7.0% Shop
Slide 27: Breakdown of valuation: rent versus yield
Breakdown of valuation: EPRA NIY Wereldhave shopping centers rent versus yield 7.5% Breakdown of Valuation Result 7.0% 6.5% Belgium -6.3% -4.2% -2.1% 6.0% France -15.0% -10.3% -4.7% Netherlands -10.5% -5.8% -4.7% 5.5% Shopping centres -10.5% -6.6% -3.9% 5.0% Belgium offices -3.6% -2.2% 4.5% Total po
Slide 28: Executed deals (1)
Executed deals (1) Shopping center WoensXL • 10,400 m² • Transaction date: 1 March 2020 • Buyer: Urban Interest Shopping center Emiclaer in Amersfoort • 19,700 m² • Transaction date: 30 December 2020 • Buyer: Urban Interest Les Passages de Mériadeck in Bordeaux • A separate 7,350 m² retail area next
Slide 29: Executed deals (2)
Executed deals (2) Shopping center In de Bogaard in Rijswijk • 19,800 m² • Part of a bigger multi-owned shopping center • Gross proceeds € 26m • Below book value, due to: • Multi-ownership situation • High vacancy rate in overall area • Lack of food anchor • Transaction date: 11 February 2021 • Buye
Slide 30: Timeline | Phase-out France until YE 2022
Timeline | Phase-out France until YE 2022 Exclusive Strategy Due Diligence update Full portfolio Asset-by-asset disposal Phase-out France phase announced Second lockdown Les Passages sold 2020 2020 2020 2021 2022 7 Feb H1 H2 Q1 H2 First round offers Re-initiate & LOIs disposal process 16 NDAs signed
Slide 31: Timeline | Disposals Netherlands
Timeline | Disposals Netherlands WoensXL Covid-19 Emiclaer Last 2 disposals Investment In exclusivity stage Announcement of disposal Sold market standstill 2020 2020 2020 2020 2020 2021 2021 Feb Feb-Mar Q2-Q3 H2 Year-end Q1 H1 4 assets on the Marketing In de Bogaard market 4 assets Sold Initially go
Slide 32: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Values & Disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices
Slide 33: Capital allocation
Capital allocation • Building a rock-solid, efficient balance sheet • Target 30-40% LTV • Disposing assets • LifeCentral: Investing in a future-proof portfolio • Long-term value creation for shareholders • LifeCentral: transformation towards Full Service Centers • >6% unlevered IRR • Dividend • Meet
Slide 34: CAPEX re-aligned with new reality
CAPEX re-aligned with new reality Investments only done in NL & BE assets with IRRs Targeted divestments Total LifeCentral investments1) in NL and BE, excl. FR above threshold of 6.0% € Mn, 2020-2022 € Mn, 2020-2025 1,075 118 26 -76 872 91 -26 109 70 69 65 1,049 55 50 42 35 763 56 66 55 50 42 30 14
Slide 35: Key development projects
Key development projects Estimated > 2021 Total Actual Unlevered Planned (In € m) capex Estimate to Pre-let Rate Investment Costs IRR Delivery 2021 Complete Tilburg 12 1 9 2 7% 23% 2022 Sterrenburg 14 5 5 4 7% 97% 2022 Ring Shopping Kortrijk 12 1 6 5 7% n.a. 2022 Other1) 35 2 24 9 Committed 73 9 44
Slide 36: Debt Profile
Debt Profile 2019 2020 Covenants Policy Interest bearing debt1) (€) 1,337m 1,254m Average cost of debt 1.9% 1.9% Undrawn committed (€) 220m 306m Cash position (€) 21m 67m Fixed vs floating debt 77% / 23% 69% / 31% min. 50% fixed Gross LTV2) 45.5% 50.9% ≤ 60% Net LTV 44.8% 46.7% 30% - 40% ICR 6.6x 5.
Slide 37: Debt Mix
Debt Mix • € 270m in new financing arranged in 2020 • Debt maturities covered until Q3 2022 Q4 2019 Q4 2020 Bank loans EMTN Bank loans • Continued disposal program and (incl. RCF) 36% 1% Treasury (incl. RCF) 36% Treasury notes constructive discussions with our banks to notes 7% 7% secure coverage fo
Slide 38: Debt expiry profile
Debt expiry profile 350 300 250 200 150 100 50 0 Drawn Undrawn Drawn Undrawn Drawn Undrawn Drawn Undrawn Drawn Undrawn Drawn Undrawn 2021 2022 2023 2024 2025 > 2025 Commercial Paper Uncommitted bank loan Bank loan USPP RCF 38
Slide 39: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Values & Disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices
Slide 40: Feb 2020: Presentation LifeCentral strategy
Feb 2020: Presentation LifeCentral strategy Actively transform our assets to Full Service Centers Strengthen the balance sheet Build on strong team and presence in Benelux 40
Slide 41: LifeCentral Strategy in a nutshell
LifeCentral Strategy in a nutshell Mission Help consumers fulfill all everyday life needs Strategic steps Expand 2 Scale ● Leverage synergies to optimize 3 1 Transform operational costs ● Acquire under-managed assets ● Execute transformations ● Become market leader ● Ensure fit with strategy and ● D
Slide 42: Covid-19: Adapting timing and focus strategy
Covid-19: Adapting timing and focus strategy LifeCentral Elements Pre Covid-19 Post Covid-19 Mixed use target 22% 25% F&B, Leisure & Entertainment and Health & Mixed use priorities F&B and Leisure & Entertainment Wellbeing Residential Focus To be investigated Identified 10 locations (out of 18 remai
Slide 43: Our values allow for transformation
Breakdown of annualised rent Netherlands Our values allow for Restaurants Leisure transformation 2% 5% Other retail 5% Essential Shoes retail Value in € per m2 5% 13% 1) Everyday retail 3,000 2,800 24% Wereldhave NL Fashion 2,425 2,500 Shopping center 30% average FY 2020 2,000 1,600 1,500 Services 6
Slide 44: LifeCentral progress, despite cash preservation
LifeCentral progress, despite cash preservation LifeCentral Progress 2020 • Belle-Île refurbishment and Vier Meren design finalized • Rolled-out Connect (online shopping platform) • Opened The Point (service hub) in Belle-Ile and Cityplaza • Rolled-out UpNext (pop-up concept) • Signed multiple Mixed
Slide 45: Investment threshold unchanged
Investment threshold unchanged Investment decisions NL & BE assets1) 2020 Market Developments • Expected average returns for continental Europe: decreased from 5.1% to 4.7% Unlevered IRR ➢ Despite lower market returns, we kept our investment threshold at 6.0% #11 6.0% Already three assets sold #5 4.
Slide 46: Residential opportunity in our Benelux portfolio
Residential opportunity in our Benelux portfolio Nivelles Residential profit € 1.60-1.85/sh Our portfolio in the Benelux contains the Kronenburg opportunity to develop between 1,600 and 2,100 Waterloo units on 10 locations. We expect +0.3% to +1.0% unlevered IRR impact on project level. We are activ
Slide 47: Transform Vier Meren to FSC
Transform Vier Meren to FSC Design finalized Well-balanced offer to fulfill all everyday life needs Restore the retail balance and become a FSC with an extensive mixed-use offering, mainly focused on F&B and leisure. Densely populated locations High household income area with growing population +20%
Slide 48: Transform Tilburg to FSC (City)
Transform Tilburg to FSC (City) 9% Well-balanced offer to fulfill all everyday life needs 3% Becoming ‘The shopping destination’ of the complete area with an Current optimal combination of retail, a broad variety of F&B, leisure and division multiple services for visitors and residents in the immedi
Slide 49: Transform Belle-Île to FSC
Transform Belle-Île to FSC Well-balanced offer to fulfill all everyday life needs Maintain the current retail offering and add co-working, leisure and sports with a high-quality F&B Densely populated locations Unique well-connected city destination covering the broader up-market Liège area (>265k ho
Slide 50: Transform Kortrijk to FSC
Transform Kortrijk to FSC Well-balanced offer to fulfill all everyday life needs Restore the retail balance by adding a balanced mix of other uses like a fresh food area, an exterior F&B zone and a new leisure & entertainment building Densely populated locations High household income area and a pote
Slide 51: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Values & Disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices
Slide 52: Continued leadership position on ESG improved
Continued leadership position on ESG improved A- B B 82 82 82 90 91 93 C C C ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 Wereldhave is a top-5 ESG performer in the European listed real estate sector (GRESB) 52
Slide 53: Clear and ambitious ESG strategy
Clear and ambitious ESG strategy 30% energy reduction per visitor since 2013 • Aligned with the UN SDGs and approved by institutions of the highest standard such as SBTi 100% 90% • Sustainability is an integrated part within our 80% LifeCentral strategy of transforming our assets into 70% Full Servi
Slide 54: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Values & Disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices 54
Slide 55: We will deliver on our ambitions
We will deliver on our ambitions Focus on Target 2020-2022 Progress 02/20 02/21 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, compl
Slide 56: Table of contents
Table of contents 1. Introduction & highlights 2. Results 3. Update on disposals 4. Capital allocation & Financing 5. LifeCentral 6. ESG 7. Management agenda Appendices
Slide 57: Tenant mix retail
Tenant mix retail Top-10 tenants Contract rent by category Other 1.1% Tenant % of annualized rent Mixed-Use 13.8% Travel & Finance Ahold Delhaize 4.2 % Services 1.6% Fashion & C&A 3.0 % Sport Accessoires 3.0% 34.5% H&M Group 2.5 % Special Goods & Others 3.6% A.S. Watson Group 2.3 % Shoe & Mirage Ret
Slide 58: Like-for-like NRI growth
Like-for-like NRI growth Strong impact from Covid-19 LFL NRI growth (% yoy) 1.9% 0.8% 1.0% 1.5% 1.3% 0.8% 1.0% 0.2% (1.5%) (1.0%) (1.0%) (0.6%) (12.0%) (19.1%) (19.4%) (21.0%) (23.8%) (28.7%) (39.7%) (50.7%) Belgium France Netherlands Shopping centres H1 2019 FY 2019 H1 2020 FY 2020 Indexation FY 20
Slide 59: Occupancy rates
Occupancy rates Stable across the board EPRA Occupancy rate Shopping Centers 97.2% 96.2% 96.3% 96.0% 96.4% 96.6% 95.6% 95.1% 94.8% 94.8% 95.0% 94.4% 92.8% 92.8% 92.0% 90.6% Belgium France Netherlands Shopping centers H1 2019 FY 2019 H1 2020 FY 2020 59
Slide 60: Footfall
Footfall The Belgian and Dutch centers outperformed their benchmark 12m change in visitors (%) 1) 4.4% 4.9% 0.4% 1.1% 0.2% 1.0% 1.1% -0.4% -13.6% -14.7% -16.4% -16.5% -22.7% -22.8% -26.1% -28.0% -29.3% -30.1% -33.5% Belgium France Netherlands Shopping centres H1 2019 FY 2019 June 2020* FY 2020 Marke
Slide 61: Reconciliation of EPRA NAV metrics 2020
Reconciliation of EPRA NAV metrics 2020 (€ per share) 2.50 30.26 -2.50 27.76 0.02 -0.02 -0.01 -0.01 27.74 0.02 -1.17 26.59 IFRS NAV Deferred tax Fair value RETT EPRA NRV Exclude RETT Exclude 50% Exclude EPRA NTA Exclude NTA Fair value of EPRA NDV H2 2020 financial H2 2020 of deferred tax Intangible
Slide 62: The Netherlands: Increase in planned Mixed Use
The Netherlands: Increase in planned Mixed Use Distribution by surface of continuing portfolio Right-sizing of multiple over- sized assets by conversion to 1,000m2 residential and write-offs 360 344 16 (4.4%) 9 (2.6%) 38 (10%) 66 (18%) 72 83 (22%) 84 (20.0%) (25.3%) 34 (9%) 317 (86%) 270 (73%) 2
Slide 63: Mixed Use – The Netherlands
Mixed Use – The Netherlands Mixed Use Division 2025 Blueprint – 2019 Status Mixed Use Division 2025 Blueprint – 2020 Status 1,000m2 1,000m2 5 4 4 38 (10%) 66 (18%) (7%) (4%) 3 2 83 (22%) 5 (5%) 2 34(3%) (4%) (9%) (6%) (2%) 33 (39%) 13 317 (86%) 270 (73%) 270 (73%) 34 (18%) (47%) 15 (18%) 15 22 (21%)
Slide 64: Belgium: Slight increase in planned Mixed Use
Belgium: Slight increase in planned Mixed Use Distribution by surface of continuing portfolio Including extension Belle-Ile (11k), Kortrijk (3k) and 1,000m2 Nivelles (1.4k) 186 188 38 (10%) 66 (18%) 48 51 (25.8%) 83 (22%) (27.3%) 34 (9%) 317 (86%) 270 (73%) 270 (73%) 138 137 (74.2%) (72.7%) 2025 Blu
Slide 65: Mixed Use - Belgium
Mixed Use - Belgium Mixed Use Division 2025 Blueprint – 2019 Status Mixed Use Division 2025 Blueprint – 2020 Status 1,000m2 1,000m2 2 2 (4%) 38 (10%) 1 (18%)(4%) 66 5 (2%) 2 83 (22%) (10%) 34 (9%) 1 (4%) (1%) 6 (13%) 6 20 22 (11%) (44%) 317 (86%) 270 (73%) 270 (73%)(43%) 16 15 (34%) (30%) F&B Leisur
Slide 66: Better footprint - performance
Better footprint - performance 100% 90% 80% 70% 60% 50% 2013 2014 2015 2016 2017 2018 2019 2020 kWh/visitor/year Target 2020 vs. 2013 -30% • Over 15,000 solar panels installed per 2020, with a capacity of 4.4 MW • Procuring 100% European wind energy for Netherlands and Belgium centers 30% energy red
Slide 67: Better nature - performance
Better nature - performance • 45% of centers have biodiversity measures in place • All eligible centers surveyed by ecologist to create actions plans • Climate risks assessed via BREEAM and CRREMM Cityplaza: Upgraded 150 m2 of green space together with municipality of Nieuwegein; next to 25,000 m2 o
Slide 68: Better living - performance
Better living - performance • Year on year local involvement with communities around our centers. Over € 1.1m community investments in kind or cash (2020) • Examples: improving accessibility by lending wheelchairs and e-wheels. Facilitating job markets and internships. Supporting donation drives by