Wereldhave N.v. · EURONEXT:WHA
Wereldhave — Investor Presentation (December 2011)
64 slides from Wereldhave's investor presentation, Dec 6, 2011
Slide 1: Wereldhave Dutch Property Tour
Wereldhave Dutch Property Tour December 6th, 2011 1
Slide 2: Program
Program 8.30 -10.15 Presentations on Wereldhave NL, Leasing & Development Bus transfer to Purmerend 11.00 – 11.45 Visit Shopping Centre „Eggert‟ in Purmerend Bus transfer to Arnhem incl lunch 13.30 – 14.15 Visit Shopping Centre „Kronenburg‟ in Arnhem Bus transfer to Leiderdorp 15.45 – 16.05 Visit Sh
Slide 3: Attendees
Attendees Acofi Gestion A. Aboulkhouatem Abn Amro R. van Maanen AEW Capital Mgmt. R. Oosterkamp AMP Capital Redding T. Walker APG Asset Management R. van der Lubbe Cornerstone RE Advisers H. Burgers First State Inv. M. van Bussel Goldman Sachs J. Livingston-Booth HSBC T. Martin ING A. Knibbe ING P.
Slide 4: Slide 4
Slide 5: Wereldhave NL
Wereldhave Dutch property tour Wereldhave NL December 6th, 2011
Slide 6: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 6
Slide 7: Introduction
Introduction Hans Vermeeren MSc MRE MRICS (41) Richard Reulink MSc MRE(43) • Managing Director Wereldhave Netherlands • Director Development Wereldhave Netherlands (03-2011) (09-2010) • Multi Development Corporation (1995 – 2011) • Unibail-Rodamco (2000 – 2010) • 2004 – 2011 Director Retail Developm
Slide 8: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 8
Slide 9: Strategy
Strategy “OLD” “NEW” • Relative small portfolio • Focus on shopping centers only • Multi-sector • Experienced hands-on retail real estate • Risk diversification organisation • Management: “Indexation and invoicing” • Focus on like-for-like rental growth • Limited (re)development activity • Improve o
Slide 10: Strategy: Focus on shopping centres
Strategy: Focus on shopping centres Other Offices Other Other RetailOffices Other Retail 4% 1% 5% 2% 1% 9% Logistics 8% Logistics 25% Shopping Shopping Centres Centres 61% 84% Portfolio Dec 2009: € 375mln Portfolio Sept 2011: € 595mln - Medium sized centres (app. 15,000 – 40,000m2) - Retail proximit
Slide 11: Overview Dutch shopping centre portfolio
Overview Dutch shopping centre portfolio Overview shopping centre portfolio Kronenburg, Arnhem Winkelhof, Leiderdorp GLA total: 34,500 m2 GLA total: 17,857 m2 WH: 31,752 m2 WH: 17,857 m2 Gross rent: € 7.8 mln Gross rent: € 4.0 mln Etten-Leur De Koningshoek, Maassluis GLA total: 25,500 m2 GLA total:
Slide 12: Dutch market retail trends
Dutch market retail trends – Challenging economic environment – Retail sales under pressure with • Food sales positive growth • Non-food sales negative growth – Increasing online sales – Real estate investment market: Strong preference for retail as “safe haven” compared to office and/or logistics i
Slide 13: KPI's Dutch shopping centre portfolio
KPI’s Dutch shopping centre portfolio • Gross Rent € 33.4 mln • Net Rental Income € 29.0 mln • LFL NRI growth Sept 2011 4,0 % • Vacancy Sept 2011 2,7% • # Visitors 30.9 million/year (*) • Number of lease agreements 520 (*) Woensel not included 13
Slide 14: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 14
Slide 15: Strengthened management organisation
Strengthened management organisation – New management team with complementary backgrounds and capabilities – Dedicated specialised teams instead of one all-round projectmanager per asset – Turnaround employees: • from 10 in 2010 to 21 in 2011 • 6 employees left Wereldhave in 2010-2011 – On-site mana
Slide 16: Organization chart
Organization chart Status June 2010 Status October 2011 Managing Country Manager Director (1) (1) Office Management Office Legal Counsel management (1) (1) (3) Mall Management Finance & Control Leasing Development Project managers Control (Holding) (6) (4) (3) (3) (5) (3) Organisational structure se
Slide 17: Wereldhave NL: Q & A
Wereldhave NL:Q&A (i 17 = Wereldhave. Value for tomorrow. WERELOHAVE
Slide 18: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 18
Slide 19: Mall management model
Mall management model More Improve Attractive Tenant Mix More + + Customers Higher Who Stay Invest -/- NRI + Footfall Longer + + And Spend More Raise Higher Rents Turnover 19
Slide 20: Introducing mall management
Introducing mall management “Old” “New“ Management Passive (pro-)active Organisations allround project managers Specialized teams Rent adjustments Indexation focussed LFL growth focussed Leasing Occupancy focussed LFL growth focussed Tenant mix “Act of god” Pro-active targeting Operations “Clean, sa
Slide 21: Mall management: Improving look & feel
Mall management: Improving look & feel Average quality many existing Dutch shopping centres look like this 21
Slide 22: Mall management: improving rent collection
Mall management: improving rent collection Results 12 months pro-active debt collection DEBTOR OVERVIEW PER QUARTER 5,000 4,500 4,000 3,500 3,000 X € 1.000 2,500 2,000 1,500 1,000 500 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Q3 2010 Q3 2011 22
Slide 23: Visitor analysis to measure performance
Visitor analysis to measure performance 25000 1600 1400 20000 1200 15000 1000 800 10000 600 5000 400 200 0 0 250 5000 4500 200 Hoofdingang Out 4000 Hoofdingang Out Chinees Out 3500 150 3000 Chinees Out Roltr-in Out 2500 2000 Roltr-in Out 100 1500 HB-Gijs Out 1000 HB-Gijs Out 50 Lift Out 500 0 Lift O
Slide 24: Mall management: eliminating dissatisfiers
Mall management: eliminating dissatisfiers Arnhem, Kronenburg; improvement of restroom area 24
Slide 25: Mall management: energy consumption reduction/ service cost management
Mall management: energy consumption reduction/ service cost management 25
Slide 26: Mall management: sustainability focus
Mall management: sustainability focus Implementation of sustainability measurements and increase cooperation with all stakeholders 26
Slide 27: Mall management: Marketing
Mall management: Marketing • Working with tenants association • Professionalizing marketing and promotion • Implementation of standardized national event calender • “Always something happening” in our centres • Usage of old- and new media tools for communication 27
Slide 28: Mall management: portal to (e-)commerce
Mall management: portal to (e-)commerce • Free WIFI – as service – ….but also to measure • Websites • Facebook • Twitter • Apps • E-commerce • M-commerce To combine best of both worlds to increase footfall and turnover! 28
Slide 29: Mall management: a new world!
Mall management: a new world! From “Clean, safe and unbroken” To “Professional managed centres with a high service level in an appealing retail environment and offer with always surprising and attractive events” 29
Slide 30: Wereldhave Mall management: Q & A
Wereldhave Mall management: Q & A 30
Slide 31: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 31
Slide 32: Leasing "old"
Leasing “old” “Indexation and invoicing” • No dedicated leasing department • No pro-active leasing activity • No target branche- and tenant mix • No active termination of lease agreement to facilitate more attractive tenants • ROZ/IPD standard lease agreement “A good tenant is a tenant who pays the
Slide 33: Leasing "new"
Leasing “new” Pro-active and structured approach: • Direct pro-active contact with all retailers (local, regional, national and international) • Creating attractive shopping centres via – Stipulating an ideal branchemix – Dissolving of non-investing and non-attractive retailers – Attracting new anch
Slide 34: Leasing "new"
Leasing “new” • Creating like-for-like rental growth via: – Termination of lease agreement and re-letting at higher rents – Rent reviews (some with main target to end leases) – Optimizing leasable area of existing shop locations • Always acting to improve/ change the 10% worst performing retailers “
Slide 35: New lease agreement
New lease agreement To accommodate the necessary changes in the shopping centre, a new lease agreement has been introduced for which court approval is required with the following improvements: “old” “new” Term Indefinite Definite Rent review1 Smoothing rent adjustm. Market-to-market Sales Based Rent
Slide 36: Leasing
Leasing “Old” 2011 YTD Leasing activity/tenant rotation 18 transactions and 3 rent reviews Average uplift rent per transaction: 30% 2011 vs 2010 Specialty leasing increase from € 180k to € 270k New leases per annum “New” 40 35 30 25 20 15 10 5 0 < 2010 2011 > 2012 # new lease agreements per annum 36
Slide 37: Leasing ambition 2012 - 2014
Leasing ambition 2012 - 2014 – Tenant rotation of 7,5% – Minimum average increase of rent of 15% – Like-for -like NRI growth impact: 100 bps – Other Like-for-like growth impact: 100 bps • Increase specialty leasing • Operating expense savings • Sales Based Rent • Improvement of occupancy • Optimizin
Slide 38: Leasing: Q & A
Leasing: Q&A (i 38 = Wereldhave. Value for tomorrow. WERELOHAVE
Slide 39: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 39
Slide 40: Development
Development Continuous process to optimize program, design and feasibility Consumer Owner Retailer 40
Slide 41: A developing investor
A developing investor – Long term sustainable (growing) income – Creating value by optimizing • Quality of space • Leasable area • Shopping routing, layout, shop visibility, etc • Branch- and tenant mix short-, medium and long term • Flexibility potential • Retail experience for consumers – No “hit
Slide 42: Development Financials
Development Financials Projects Retail space Retail space Timeschedule Development Net Initial Wereldhave extension opening costs (in mln) Yield existing GLA GLA per phase extension Arnhem, Kronenburg 31.752 12.000 2013 - 2016 34 Leiderdorp, Winkelhof 17.857 7.000 2014 - 2015 29 Maassluis, Koningsho
Slide 43: Summary Mall management model
Summary Mall management model More Improve Attractive Tenant Mix More + + Customers Higher Who Stay Invest -/- NRI + Footfall Longer + + And Spend More Raise Higher Rents Turnover 43
Slide 44: Summary ambition Wereldhave NL 2012-2014
Summary ambition Wereldhave NL 2012-2014 – Leasing • Tenant rotation of 7,5% • Minimum average increase of rent of 15% per new contract • Like-for-like NRI growth 200 bps above index – Mall management: Increase of # visitors of our shopping centres as from 2013 – Development: NIY of 7,5% on estimate
Slide 45: Q&A
Q&A iz = Wereldhave. Value for tomorrow. WERELOHAVE
Slide 46: On the right track
On the right track........ © Original Artist Be rrodutign rights obtainable” from [ww w. CartoonStock com Digec to RY \/ Ee © Make Baldwin! Cornered BARA y- 46 = Wereldhave. Value for tomorrow. WERELOHAVE
Slide 47: Appendix I: Dutch market overview
Wereldhave Dutch property tour Appendix I Dutch market overview December 6th, 2011
Slide 48: Macro economics
Macro economics Economic growth in The Netherlands and the Eurozone (in %) Inflation in The Netherlands and the Eurozone (in %) 6 5 4 5 3 4 2 1 3 0 2 -1 -2 1 Real GDP growth -3 Netherlands -4 0 -5 -1 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11* '12* '13* '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '
Slide 49: Real estate investment market
Real estate investment market Dutch real estate yield development (2001 – 2011) Offices Logistics Retail 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q3 2011 Source: Cushman & Wakefield 49
Slide 50: Shopping centre supply
Shopping centre supply Dutch shopping centre GLA Completed GLA (m²) Total Shopping Center GLA (m²) 6,000,000 300,000 5,000,000 250,000 4,000,000 200,000 3,000,000 150,000 2,000,000 100,000 1,000,000 50,000 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Cushman & Wakefield 50
Slide 51: Rent development prime retail locations
Rent development prime retail locations Amsterdam - Kalverstraat Rotterdam - Lijnbaan The Hague - Spuistraat Utrecht - Lange Elisabethstraat Eindhoven - Demer Maastricht - Grote Staat Arnhem - Ketelstraat Groningen - Herestraat € 2,700 € 2,500 € 2,300 € 2,100 € 1,900 € 1,700 € 1,500 € 1,300 € 1,100
Slide 52: Slide 52
Slide 53: Appendix II: Property fact sheets
Wereldhave Dutch property tour Appendix II Property fact sheets December 6th, 2011
Slide 54: Overview Dutch shopping centre portfolio
Overview Dutch shopping centre portfolio Overview shopping centre portfolio Kronenburg, Arnhem Winkelhof, Leiderdorp GLA total: 34,500 m2 GLA total: 17,857 m2 WH: 31,752 m2 WH: 17,857 m2 Gross rent: € 7.8 mln Gross rent: € 4.0 mln Etten-Leur De Koningshoek, Maassluis GLA total: 25,500 m2 GLA total:
Slide 55: Capelle a/d IJssel, De Koperwiek
Capelle a/d IJssel, De Koperwiek • Function: City‟s dominant shopping centre • Owners: Wereldhave and Van der Vorm Vastgoed • Opening: 1965 (Van der Vorm part) 1995 (Wereldhave part) • GLA: Total :22,000 m2 W‟ have :9,099 m2 retail :61 app. • Catchment area: Primary :63,350 persons Secundary :28,000
Slide 56: Capelle a/d IJssel, De Koperwiek
Capelle a/d IJssel, De Koperwiek 56
Slide 57: Eindhoven, Woensel XL
Eindhoven, Woensel XL • Function: regional shopping centre • Owners: Wereldhave, Redevco, IEF, private investors • Opening: 1967 • Extension: 2004-2006 • GLA: Total :41,000 m2 W‟have :10,342 m2 retail :484 m2 office • Catchment area: Primary :100,800 persons Secundary :133,000 persons • Gross rent:
Slide 58: Eindhoven, Woensel XL
Eindhoven, Woensel XL za @) Wereldhave. Value for tomorrow. Sten Floor plan Ground Floor Harense Smid “C1000! WERELOHAVE
Slide 59: Etten-Leur, SC Etten-Leur
Etten-Leur, SC Etten-Leur • Function: Part of city centre retail structure • Opening: 1965 • Refurbishment: 1994-1996 / 2005 • GLA: Total :25,500 m2 W „have :22,146 m2 retail • Catchment area: Primary : 41,000 persons Secundary : 75,000 persons • Visitors: 3.6 million / year • Gross rent: € 3.7mln •
Slide 60: Etten-Leur, SC Etten-Leur
Etten-Leur, SC Etten-Leur 60
Slide 61: Maassluis, De Koningshoek
Maassluis, De Koningshoek • Function: Part of city centre retail structure • Opening: 1972 • Refurbishment: 1985 • GLA: Total :20,500 m2 W „have :16,500 m2 retail • Catchment area: Primary :46,665 persons Secundary :110,000 persons • Visitors 3,4 million / year • Gross rent: € 2.7mln • Parking: 1,00
Slide 62: Maassluis, De Koningshoek
Maassluis, De Koningshoek 62
Slide 63: Roosendaal, De Roselaar
Roosendaal, De Roselaar • Function: Part of city center retail structure • Opening: 1968 • Refurbishment: 1996 • GLA: Total :28,000 m2 W „have :12,574 m2 retail :167 m2 other • Catchment area: Primary :77,700 persons Secundary :50,000 persons • Visitors: 5.0 million / year • Gross rent: € 3.5mln • P
Slide 64: Roosendaal, De Roselaar
r oe (WU) (@ Wereldhave. Value for tomorrow. UWERELDHAVE