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Nextensa — Leasinvest Real Estate — Debt Investor Presentation (November 2019)
69 slides from Nextensa's debt investor presentation, Nov 5, 2019
Slide 1: Leasinvest Real Estate Investor Presentation
Leasinvest Real Estate Investor Presentation 5 November 2019
Slide 2: Disclaimer
Disclaimer No person is under any obligation to update or keep current the This Presentation does not constitute an offer or invitation to proceed information contained in this document and any opinions expressed to an acquisition of or subscription for the Company’s securities, nor in relation ther
Slide 3: Table of contents
Table of contents 1. Key investment highlights p. 5 2. Company profile & strategic vision p. 7 3. Activity overview p. 15 4. Corporate governance p. 32 5. Portfolio overview p. 35 6. Highlights 1H 2019 p. 44 7. Financials & outlook p. 46 8. Bond issue offering p. 54 Appendices p. 59
Slide 4: Key investment highlights
Key investment highlights
Slide 5: Key investment highlights
Key investment highlights 1 2 3 4 5 Unique exposure Diversified quality Proactive Proven expertise in Strong dividend to the growing portfolio on the commercial (re)development of track record Luxembourg office back of dynamic approach buildings and retail market asset management translating into a
Slide 6: Company profile & strategic vision
Company profile & Strassen (LU) strategic vision
Slide 7: Company profile
AT Company profile Logistics 10% 6% Fair value Fair value Offices LU 51% € 1.13 bn Fair value portfolio (> 29/08/2019) BE € 1.06 bn 55% € 1.06 bn € 1.23 bn (incl. participation in Retail Estates) (id) 35% Retail 43% ~ € 717 m Market capitalization 27/10/2019 30/06/2019 30/06/2019 Shareholders • Acke
Slide 8: Strategic vision: investment strategy, opportunity driven
Strategic vision Investment strategy – Opportunity driven Metro Group retail (LU) Tour & Taxis Royal Depot portfolio € 50 m - 3 buildings (BE) € 108 m 2011: extension Diekirch landmark office building 2017-2020: redevelopment Strassen in Brussels Dexia Immo Lux (LU) Knauf shopping (LU) portfolio € 1
Slide 9: Strategic vision: investment strategy, opportunity driven
Strategic vision Investment strategy – Opportunity driven EBBC (LU) Owning 5 out of 6 buildings in BP in Lux airport district - 2018: € 64 m + 2019: € 47 m Mercator (LU) 2017: further growth in LU € 35 m Stadlau (AT) Frun Park, Retail Park 2017: further growth in AT Vösendorf (AT) Asten (AT) € 56 m
Slide 10: Strategic vision: development strategy
Strategic vision Development strategy – Organic (re)developments Montoyer Brussels CBD (BE) Boomerang Strassen (LU) Reconstruction by 2018 2017-2020: redevelopment Strassen 2016: 21y usufruct with EP Strictly confidential - Bond issue offering | Leasinvest 10 Leasinvest.be
Slide 11: Strategic vision: development strategy
Strategic vision Development strategy – Organic (re)developments Royal 20 CBD (LU) Treesquare (BE) Reconstruction by 2015 Reconstruction by 2018 Let to China Merchant’s bank Building of ~ 6,500 m² Sold with capital gain of > € 20 m on investment Let to high end occupants Strictly confidential - Bond
Slide 12: Commercial strategy: maximizing lease duration and occupancy
Strategic vision Commercial strategy – Maximizing lease duration & occupancy rates 2/ De Mot 1/ Tour & Taxis 3/ Mercator Strictly confidential - Bond issue offering | Leasinvest 12 Leasinvest.be
Slide 13: Dividend: long term EPS and gross DPS evolution
Long term EPS & Gross DPS evolution 6,5 Strategic vision 6,0 5,5 Dividend 5,0 4,5 Gross dividend 2018 increased +2% 4,0 to € 5.10 over 2018 (2017: € 5.00) 3,5 Net dividend 2018 amounts to € 3.57 (excl. 30% 3,0 2014 2000 2001 2010 2015 2016 2017 2018 2002 2003 2011 2012 2013 2004 2005 2006 2007 2008
Slide 14: Activity overview
Activity overview
Slide 15: Investments
Agreement with Immo Lux-Airport SA for the acquisition of the EEBC buildings B and E in the EBBC Business Park in Luxembourg Investments After closing of the first half-year 2019: Acquisition 2 retail parks near Shopping City Süd in Vösendorf close to Vienna, in Austria Strictly confidential - Bond
Slide 16: Agreement Immo Lux Airport EBBC B & E (LU)
Agreement Immo Lux Airport EBBC B & E (LU) 16
Slide 17: EBBC business park
Business park ~ 27,000 m² LRE is also redeveloping the site to build a stronger business community with advanced services to occupants (restauration, kinder garden + add fitness, co-working, etc.) & shared IT services, LRE now owns 5 of 6 buildings on total EBBC site Investment price benefit from ne
Slide 18: Acquisition Nordring 2-10 & 16 (AT)
Nord- ring 2-10 Nord- ring 16 Acquisition Nordring 2-10 & 16 (AT) 18
Slide 19: Retail park close to SCS Vösendorf
Retail park close to SCS Vösendorf 235,000 m² - 330 shops - footfall +/- 20 million/y Total investment Retailpark Nordring 16, Vösendorf € 71.8 m 11,350 m² and 202 parking spaces Tenants: Lidl, Pittarello, Action, Bipa and Farben- Partner Retailpark Nordring 2-10, Vösendorf 14,800 m² and 278 parking
Slide 20: Retail Estates (BE)
Retail Estates (BE) Leasinvest (LRE) holds 10.49% share in BE-REIT Retail Estates (FV € 107.3 m at 30/06/2019) € 9.2 m investment in optional dividend and 75,000 extra shares to keep >10% stake Real estate portfolio of € 1.5 bn (30/06/2019) Focus = clusters & retail parks (82% of total portfolio) Po
Slide 21: Developments
Montoyer 14 (BE) Hangar 26/27 (BE) Developments Strictly confidential - Bond issue offering 21 | Leasinvest Leasinvest.be Knauf Schmiede (LU) Knauf Pommerloch (LU)
Slide 22: Montoyer 14 CBD Brussels (BE)
Montoyer 14 CBD Brussels (BE) 22
Slide 23: Redevelopment Montoyer 14 in the European Quarter
Redevelopment Montoyer 14 in the European Office building of Quarter 4,000 m² to redevelop ERV of € 1.2 m Investment Price: € 23.5 m First higher wooden construction C02 neutral passive building Building permit New generation of request ‘recyclable buildings introduced end May Delivery: Objective: B
Slide 24: Antwerp (BE) Hangar 26/27
Antwerp (BE) Hangar 26/27 Rijnkaai Berlin b Museum aan de Stroom SCHIPPERSKWAR Hetsteen
Slide 25: Hangar 26/27 retail and offices
Danish architects CF Moller have been appointed to design a high-end mixed projects with Retail and offices extension of offices 9,395 m² and retail Building permit request will be introduced beginning of 2020 Construction works foreseen to start in Investment Price: Q4 2020 € 23 m New lease for ren
Slide 26: Redevelopment Knauf shopping center Schmiede (LU)
Redevelopment Knauf shopping center Schmiede (LU) 26
Slide 27: Strengthening position as largest shopping center in North Luxembourg
Strengthening position as largest shopping center in the North of Luxembourg Extension of ~ 8,000 m² Opening C&A Family store of 976 m2 Extension H&M & Delhaize: 1H 2020 Foreseen Capex: Finalization interior € 30 m redesign: end 2019 Reception Q3 2021 Strictly confidential - Bond issue offering | 27
Slide 28: Redevelopment Knauf shopping center Pommerloch (LU)
Redevelopment Knauf shopping center Pommerloch (LU) 28
Slide 29: Extension of parking and additional commercial and office space
Extension of parking additional commercial & office space (both 850 m2) Extension of Leonidas Chaqwa coffee formula Strictly confidential – 29 Bond issue offering | Leasinvest Leasinvest.be Works evolve as scheduled (March 2019 – April 2020)
Slide 30: Leases
Frun® Park Asten & Gewerbepark Stadlau: 100% occupancy (extension & renewals) Tour & Taxis Royal Depot: high occupancy thanks to a number of renegotiations and Monnet, EBBC and Esch: extensions new leases signed in coming months, solving rental vacancy Brixton Business Park, Leases Riverside Busines
Slide 31: Corporate governance
Corporate governance
Slide 32: Board of Directors & Management
Jan Suykens Piet Dejonghe Chairman Director CEO & chairman member Executive Executive Committee Committee Ackermans Ackermans & van Haaren & van Haaren Directors nominated by AvH Michel Van Geyte Executive director Jean-Louis Appelmans Director CEO Leasinvest Real Estate non-executive director (ex-C
Slide 33: Board of Directors & sub-committees
BoD AC BRC Jan Suykens Chairman, non-executive director X (chairman) Michel Van Geyte Managing director Piet Dejonghe non-executive director X Jean-Louis Appelmans* non-executive director Dirk Adriaenssen Independent director Board of Eric Van Dyck Independent director X Directors & Marcia De Wachte
Slide 34: Portfolio overview
Portfolio overview Knauf Shopping Center Schmiede (LU)
Slide 35: Portfolio overview: two segments in three countries
Portfolio overview 01 Focused on two segments in three countries Portfolio split – Fair value Portfolio split – Net income 30/06/2019 30/06/2019 AT Logistics AT Logistics 10% 6% 10% 8% Offices 40% LU Offices BE € 1.06 bn 55% € 1.06 bn 51% € 32 m LU € 32 m 35% BE 57% Retail 33% 43% Retail 52% Excludi
Slide 36: Portfolio overview: market and geographical diversification
Portfolio overview 02 A unique combination of market segments and geographical diversification LU BE AT FV | € 581.5 m FV | € 366.3 m FV | € 107.3 m Yield | 6.51% Yield | 6.48% Yield | 5.41% 350,00 Retail Offices Offices 300,00 294.8 264.5 300,00 268.7 250,00 250,00 200,00 200,00 Retail 150,00 150,0
Slide 37: Portfolio overview: long term growth through focused approach
Portfolio overview 03 Demonstrating long term growth through a focused approach Evolution of portfolio fair value per country Evolution of split in market segments including stake in Retail Estates Focus on three countries Focus on two asset classes • i.e. Luxembourg – Belgium – Austria • i.e. retai
Slide 38: Portfolio overview: solid occupancy rates
Portfolio overview 04 On the back of solid occupancy rates Occupancy rates per 30 June 2019 Duration leases till first break per 30 June 2019 (in years) Luxembourg Luxembourg Belgium Belgium Austria Austria Total1HQ1 2018 2019 Total 2017 Total 2018 Luxembourg Luxembourg Belgium Belgium Austria Austr
Slide 39: Leasinvest's markets: office market
Belgium Take-up Brussels (+120% YoY) Leasinvest’s of which 55% in projects Vacancy rate: 7.6% (CBD 3.3%) markets Prime rent CBD: 315€/m2/y (Treesquare at € 330/m2/y) Office Market Investments: € 1.2 bn (+7% YoY) (1H 2019) Prime yield: 4.15% (LT 3.5%) Luxembourg Vacancy rate ~ 3.6% Take-up: 41,334 m2
Slide 40: Leasinvest's markets: retail market
Leasinvest’s markets Retail Market (1H 2019) Luxembourg Austria Rental market: take-up 14,261 m2 - Increasing online sales lead to a shopping centers +50% vs 5-y 1H stagnation of retail spaces average & representing 50% of total, due to completion of several projects Retail sales and retail space pe
Slide 41: Leasinvest's markets: Luxembourg
Luxembourg is a key intermediary of global capital flow with more than € 4 .16 tn of assets under management Luxembourg has been an employment magnet for neighboring countries and beyond Economic performance has remained strong in 2018, with a GDP growth of 3.6%, with 4.0% forecasted for 2019 The ex
Slide 42: Leasinvest's markets: Austria
Vienna confirmed as best place to live worldwide While demand for retail properties remains high, supply is limited, weighting on yields The production of new space for retail parks and shopping centres has Leasinvest’s basically come to a standstill Most of the attractive development markets locati
Slide 43: Highlights 1H 2019
Treesquare (BE) Highlights 1H 2019
Slide 44: Highlights 1H 2019
EPRA earnings rise by 58% to ~ € 22.1 m from ~ € 14.0 m (1H 2018 & including dividend from RE) Net result € 25.3 m (€ 4.27/share) vs € 19.7 m Dividend 2018 +2% (1H 2018, € 3.99/share) Highlights € 5.10/share 1H 2019 Debt ratio at EPRA earnings Weighted average 55.70% increase by lease 5.3% toof€ ter
Slide 45: Financials & outlook
Financials & outlook
Slide 46: Key consolidated financials 1H 2019
Key figures balance sheet 30/06/2019 31/12/2018 Net asset value group share (€ 1,000) 464 431 475 811 Weighted average number of shares after capital increase on 5 926 644 5 179 724 04/10/2018 Number of shares at closing date 5 926 644 5 926 644 Net asset value group share per share (€) 78.4 80.3 Ne
Slide 47: EPRA KPIs 1H 2019
EPRA performance measures 30/06/2019 30/06/2018 EPRA Earnings* (in € per share) (1) 3.73 2.83 EPRA NAV* (in € per share) (2) 89.07 82.84 EPRA NNNAV* (in € per share) (3) 80.3 75.46 EPRA Net Initial Yield* (in %) (4) 5.32% 5.49% EPRA KPIs EPRA Topped up Net Initial Yield* (in %) (5) EPRA Vacancy* (in
Slide 48: Consolidated income statement
Consolidated statement of realized and unrealized results (in 1,000 €) 30/06/2019 30/06/2018 (+) Rental income 32 377 27 858 (+) Write-back of lease payments sold and discounted 0 0 (+/-) Related-rental expenses -202 0 NET RENTAL INCOME 32 175 27 858 2 (+) Recovery of property charges 76 (+) Recover
Slide 49: Consolidated balance sheet
(€ 1,000) 30/06/2019 31/12/2018 (€ 1,000) 30/06/2019 31/12/2018 ASSETS LIABILITIES I. NON-CURRENT ASSETS 1 192 663 1 116 270 TOTAL SHAREHOLDERS’ EQUITY 464 431 475 811 Intangible assets 0 0 I. SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS 464 431 475 811 Investment properties 1 037 334 1 004
Slide 50: Funding
Rental yield vs funding cost Funding 8% 7% 6% Funding 5% diversification 4% 3% Cost of debt: decrease 2% from 2.59% (2018) 1% to 2.34% (1H 2019) 0% 28% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H 2019 Total committed lines 56% (incl. bonds) of € 651.5 m (30/06) (on 29/8/19 ex
Slide 51: Hedging
Hedging Hedge ratio 90% Debt financing – 52% fixed ratio Fix ratio 80% Hedge ratio (30/06/2019) – 81% Hedge ratio 70% strategy Fixed rate debt, incl. bonds (29%) and interest rate swaps (52%) 60% Duration hedges: 6.61y 50% vs 5.35y (2018) 40% New forward starting derivatives purchased (Interest Rate
Slide 52: Outlook FY 2019
Treesquare (BE) Outlook FY 2019 As already mentioned in the annual financial report 2018, subject to extraordinary circumstances, LRE expects a higher rental income in comparison with 2018, while the financial costs are expected to be in line with those of the previous year. However, we have to take
Slide 53: Bond Issue Offering
Bond Issue Offering
Slide 54: Key investment highlights
Key investment highlights 1 Operations subject to a defensive umbrella of BE-REIT Regime Unique exposure to the growing retail and office markets in Luxembourg, topped up 2 with positions in Belgium and Austria 3 Proactive commercial approach translating into a high quality tenant base 4 Successful
Slide 55: Terms and conditions of the offering
Terms and conditions of the offering Issuer Leasinvest Real Estate SCA/Comm. VA Currency EUR Issue amount n.a. Denomination EUR 100,000 plus EUR 100,000 Tenor [7 to 8 years] Interest Fixed interest rate, payable [annually] on each payment date Status Senior unsecured Form Dematerialised Use of proce
Slide 56: Bond covenants
Bond covenants Bond covenants Existing LRE’s debt facilities covenants Negative pledge The concluded bank credits hold classic covenants mainly Interest related to maintaining the REIT (SIR/GVV) status and the Debt ratio coverage ratio The Issuer shall only be entitled to related maximum debt ra
Slide 57: Use of proceeds
Use of proceeds The bond issue will support diversification of financial resources and further growth of LRE's portfolio • LRE will use the proceeds to : • further expand its portfolio base through acquisitions in retail and office markets across Luxembourg, Belgium and Austria • redevelop its exist
Slide 58: Appendices
Knauf Shopping Center Schmiede (LU) Appendices
Slide 59: Share price performance
Strassen (LU) Share price performance
Slide 60: Share performance
320 280 240 Share 200 performance 160 120 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Strictly confidential – 60 Bond issue offering | Leasinvest share price LRE EPRA Eurozone Index EPRA Belgium Index Leasinvest.be Figures till 25 October 2019 in
Slide 61: Share performance
Share performance Strictly confidential – 61 Bond issue offering | Leasinvest Leasinvest.be Figures till 9 September 2019 included
Slide 62: Share performance: performance report August 2019
Performance report August 2019 Share performance Strictly confidential – 62 Bond issue offering | Leasinvest Leasinvest.be
Slide 63: Investor relations team
Investor relations team Michel Van Geyte Tim Rens Chief Executive Officer Chief Financial Officer Michel Van Geyte (53) joined Leasinvest Real Estate in August Tim Rens (38) joined Leasinvest 2004. He is CEO and executive Real Estate as CFO in May 2017. director of Leasinvest Real Estate and Leasinv
Slide 64: Structure & Corporate governance
Structure & Corporate governance
Slide 65: Corporate Structure
Ackermans & van Haaren AXA Belgium 30% 27% 100% Leasinvest Real Estate SCA/Comm. VA Leasinvest Real Estate Management SA/NV = BE REIT/SIR/GVV = asset management for LRE & LIL = buildings in Belgium Belgium Corporate Grand-duchy of Luxembourg Austria Leasinvest Services SA/NV 100% 100% Leasinvest Imm
Slide 66: Main assets
Treesquare (BE) Main assets
Slide 67: Main assets in Luxembourg
RETAIL Batiself & Siemes Diekirch Acquisition: 2008 RETAIL Shopping center Knauf Pommerloch North of Luxembourg Acquisition: 2013 OFFICE OFFICES & WAREHOUSE Montimmo CFM Avenue Monterey, CBD 3,600 m² Offices en 10,000 m² Warehouse Acquisition: 2008 RETAIL Strassen Main assets 2 phase renovation 2017
Slide 68: Main assets in Belgium
OFFICE OFFICE Motstraat The Crescent Motstraat 30, Anderlecht Mechelen Lenniksebaan 451, Acquisition: 2002 Anderlecht Acquisition: 2004 OFFICE / RETAIL Brixton Business Park Brixtonlaan 1-30, Zaventem Acquisition: 1999 OFFICE Montoyer Riverside Business Park Internationalelaan 55, Anderlecht Acquisi
Slide 69: Main assets in Austria
RETAIL Frun Park Asten Linz - 200 KM from Vienna Acquisition: 2016 RETAIL Nordring 2-10 & 16 Vösendorf – South of Vienna Acquisition: 2019 Main assets in Austria RETAIL Hornbach Baumarkt (Stadlau 22nd district Vienna) Acquisition: 2017 Strictly confidential – Bond issue offering | RETAIL 69 Leasinve
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