Nepi Rockcastle N.v · JSE:NRP
Nepi Rockcastle — NEPI — H1 2014 Earnings Presentation
38 slides from Nepi Rockcastle's earnings presentation, June 2014
Slide 1: Results presentation June 2014
Results presentation June 2014 1 Company profile A Central and Eastern European property development and investment company Distribute cash dividends (or return of capital & share subscription) on a semi-annual basis Invest in properties with long-term multinational tenants with leases in Euro
Slide 2: Strategy; Financial performance
Strategy Dominant or potentially dominant regional shopping malls and value centres in Romania and Slovakia Opportunistic investment in A-grade offices in prime locations in cities with significant multi-national tenant presence Continued expansion beyond Romania with strong local management t
Slide 3: Highlights
Highlights Recurring distributable earnings (€) 19% (compared to the six months ended 30 June 2013) Increase in acquisition and development pipeline Retail: Achievement of scale in Romania Increase in foot-fall Vacancy* at 1.45% (1.52% at 31 Dec 2013) Negligible arrears * Excluding inves
Slide 4: Portfolio structure by gross rental; Top 10 retail tenants
Portfolio structure by gross rental Jun 2013 Jun 2014 4% 3% 42% 31% 66% 54% Retail Office Industrial 7 Top 10 retail tenants Carrefour 6.3% Auchan 6.2% Bricostore 3.3% Metro Cash & Carry 2.0% H&M 1.5% Altex 1.4% Cora 1.4% Deichmann 1.2% Praktiker 1.1% Zara 1.0% 0% 2% 4% 6% 8% % of total monthly rent
Slide 5: Top 10 office tenants; Rent expiry profile per sector
Top 10 office tenants PricewaterhouseCoopers 3.2% Royal Bank of Scotland 1.4% Huawei 1.3% Raiffeisen Bank 1.2% Wipro 1.1% Alcatel-Lucent 1.1% Xerox 1.0% Regus 0.8% L'Oreal 0.8% Visma 0.7% 0% 1% 2% 3% 4% % of total monthly rent in Jun 2014 9 Rent expiry profile per sector Gross rentals (€ million) 70
Slide 6: Debt repayment profile; Romania macroeconomic
Debt repayment profile € million 120 116 100 80 69 60 65 40 20 24 10 0 2014 2015 2016 2017 2018 and beyond 11 Romania – macroeconomic Key indicators 2013 2014 2015 2016 2017 2018 Real GDP growth (%) 3.5 3.1 3.8 4.6 4.7 4.5 General gov. budget balance (% of GDP) (2.3) (2.3) (2.1) (2.0) (2.0) (2.0) Ge
Slide 7: Slovakia macroeconomic; Macroeconomics
Slovakia – macroeconomic Key indicators 2013 2014 2015 2016 2017 2018 Real GDP growth (%) 0.9 2.4 3.1 3.6 3.9 4.0 General gov. budget balance (% of GDP) (2.8) (2.9) (3.0) (2.9) (2.8) (2.7) General gov. debt (% of GDP) 55.4 56.8 57.1 56.8 54.9 54.9 Unemployment (%) 14.2 13.8 13.6 13.3 12.9 12.5 Price
Slide 8: Private consumption growth (2002 base)
Private consumption growth (2002 base) 200% Romania 180% Baltics aggregate 160% 140% Bulgaria 120% Albania 100% Serbia Slovakia 80% Czech Republic Poland 60% Croatia Slovenia 40% Hungary 20% EU 15 aggregate 0% -20% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 15 Private consumption pe
Slide 9: Increasing market share - modern grocery trade
Increasing market share - modern grocery trade 100% 100% 80% Traditional grocery trade in Romania 80% 60% 60% 40% 40% 20% Modern grocery trade in Romania 20% 0% 0% 2000 2002 2004 2006 2008 2010 H1'12 H1'13 Modern grocery trade vs Traditional grocery trade in CEE (2012) 100% 28% 24% 20% 80% 40% 38% 3
Slide 10: Completed acquisitions and developments
Completed acquisitions and developments Developments completed during 2014 Vaslui Strip Mall (May 2014) The Office Cluj-Napoca - Phase I (July 2014 - final sign-off by authorities pending) Land acquisitions during 2014 Shopping City Timisoara (April 2014) Piatra Neamt (July 2014) 19 Kaufland
Slide 11: Kaufland value extension (Vaslui, Romania)
Kaufland value extension (Vaslui, Romania) 21 Kaufland value extension (Vaslui, Romania) 22 11
Slide 12: The Office (Cluj, Romania)
The Office (Cluj, Romania) 23 The Office Phase I (Cluj) 24 12
Slide 13: The Office Phase I (Cluj)
The Office Phase I (Cluj) 25 The Office Phase I (Cluj) 26 13
Slide 14: Acquisitions, developments and extensions pipeline
The Office Phase I (Cluj) 27 Acquisitions, developments and extensions pipeline Acquisitions pipeline (€m) Jun-14 - 38 437 0 100 200 300 400 500 600 Controlled Further opportunities Developments and extensions pipeline (€m) Jun-14 (14) 154 105 170 96 Dec-13 (46) 91 127 169 Dec-12 26 60 122 -100 0 10
Slide 15: Schedule of developments
Schedule of developments Weighted Weighted Weighted Target Ownership Weighted GLA on yield cost to date Property name Location Type opening total cost completion on cost (Jun 14) date % m2 % €m €m Developments under construction 120,169 10.4 118.4 227.4 1 The Office (Phase I) Romania Office 2014 Q3
Slide 16: Mega Mall (Bucharest, Romania)
Mega Mall (Bucharest, Romania) 31 Mega Mall (Bucharest, Romania) 32 16
Slide 17: Mega Mall (Bucharest, Romania)
Mega Mall (Bucharest, Romania) 33 Mega Mall (Bucharest, Romania) 34 17
Slide 18: Mega Mall (Bucharest, Romania)
Mega Mall (Bucharest, Romania) 35 Mega Mall (Bucharest, Romania) 36 18
Slide 19: Mega Mall (Bucharest, Romania)
Mega Mall (Bucharest, Romania) 37 Mega Mall (Bucharest, Romania) 38 19
Slide 20: Mega Mall (Bucharest, Romania)
Mega Mall (Bucharest, Romania) 39 Mega Mall (Bucharest, Romania) 40 20
Slide 21: Mega Mall; Vulcan (Bucharest, Romania)
Mega Mall (Bucharest, Romania) 41 Vulcan (Bucharest, Romania) 42 21
Slide 22: Vulcan (Bucharest, Romania)
Vulcan (Bucharest, Romania) 43 Vulcan (Bucharest, Romania) 44 22
Slide 23: Vulcan (Bucharest, Romania)
Vulcan (Bucharest, Romania) 45 Vulcan (Bucharest, Romania) 46 23
Slide 24: Vulcan; Targu-Jiu Shopping City
Vulcan (Bucharest, Romania) 47 Targu-Jiu Shopping City (Targu-Jiu, Romania) 48 24
Slide 25: Targu-Jiu Shopping City (Targu-Jiu, Romania)
Targu-Jiu Shopping City (Targu-Jiu, Romania) 49 Targu-Jiu Shopping City (Targu-Jiu, Romania) 50 25
Slide 26: Targu-Jiu Shopping City (Targu-Jiu, Romania)
Targu-Jiu Shopping City (Targu-Jiu, Romania) 51 Targu-Jiu Shopping City (Targu-Jiu, Romania) 52 26
Slide 27: Targu-Jiu Shopping City (Targu-Jiu, Romania)
Targu-Jiu Shopping City (Targu-Jiu, Romania) 53 Targu-Jiu Shopping City (Targu-Jiu, Romania) 54 27
Slide 28: Timisoara Retail Development
Timisoara Retail Development 55 Timisoara Retail Development 303,000 residents 3rd largest city in Romania; Catchment Population 15 minutes 439 500 30 minutes 476 500 45 minutes 570 500 Timis County 650,000 inhabitants 56 28
Slide 29: Timisoara, Romania
Timisoara, Romania 57 Timisoara, Romania 58 29
Slide 30: Timisoara, Romania
Timisoara, Romania Ground level 59 Timisoara, Romania Upper level 60 30
Slide 31: Timisoara, Romania
Timisoara, Romania 61 Timisoara, Romania 62 31
Slide 32: Piatra Neamt Retail Development
Piatra Neamt Retail Development 63 Piatra Neamt Retail Development 85,000 residents Catchment Population 15 minutes 130 000 30 minutes 205 000 45 minutes 245 000 Neamt County 570,000 inhabitants 64 32
Slide 33: Piatra Neamt Retail Development
Piatra Neamt Retail Development Ground level Upper level 65 Piatra Neamt Retail Development 66 33
Slide 34: Piatra Neamt; Victoriei Office (Bucharest)
Piatra Neamt Retail Development 67 Victoriei Office (Bucharest, Romania) 68 34
Slide 35: Victoriei Office (Bucharest, Romania)
Victoriei Office (Bucharest, Romania) 69 Victoriei Office (Bucharest, Romania) 70 35
Slide 36: Victoriei Office (Bucharest, Romania)
Victoriei Office (Bucharest, Romania) 71 Victoriei Office (Bucharest, Romania) 72 36
Slide 37: Victoriei Office (Bucharest, Romania)
Victoriei Office (Bucharest, Romania) 73 Victoriei Office (Bucharest, Romania) 74 37
Slide 38: Prospects; Questions & Answers
Prospects Earnings guidance Further retail acquisitions and developments Continued increase in scale 75 Questions & Answers 76 38