Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — H1 2018 Earnings Presentation
43 slides from Nextensa's earnings presentation, Aug 23, 2018
Slide 1: Financial results – H1 2018
Financial results - H1 2018 Coeasinyess www.leasinvest.be
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. Such forward-looking statements involve unknown risks, uncertainties and other factors which may cause the actual results, financial conditions, performance or achievements of the company to be materially different from any future res
Slide 3: Presenting team
Presenting team Michel Van Geyte Tim Rens Chief Executive Officer Chief Financial Officer Michel Van Geyte (52) joined Leasinvest Real Estate in August Tim Rens (37) joined Leasinvest Real Estate as CFO in May 2017. 2004. He is CEO and executive director of Leasinvest Real Estate tim.rens@leasinvest
Slide 4: Table of content
Table of content 01 l Highlights H1 2018 02 l Company profile & strategy 03 l Portfolio overview 04 l Activity overview 05 l Financials & outlook 06 l Key investment highlights Appendices Leasinvest.be Financial Results | H1 2018 | Leasinvest | 4
Slide 5: Highlights H1 2018
QO 1 Highlights H1 2018
Slide 6: Highlights H1 2018
Highlights H1 2018 • EPRA earnings increase by 5.3% to € 14.0m from € 13.3m (H1 2017) • Important rise of net result (+26%) to € 19.7m (€ 3.99 per share) from € 15.6m (H1 2017, € 3.16 per share) • Dividend forecast unchanged at € 5.00 per share • Real estate portfolio of € 922m, an increase of 2% co
Slide 7: Company profile & strategic vision
02 Company profile & strategic vision
Slide 8: Company profile
Company profile AT Logistics 1 Billion 10% 6% Retail 53% Fair value portfolio (incl. stake in Retail Estates) > € 490M Fair value LU Fair value Market capitalization 30/06/2018 49% 30/06/2018 € 1Bn € 1Bn Shareholders BE Offices 41% Ackermans & van Haaren 30% 41% AXA Belgium 29% Including stake in Re
Slide 9: Leasinvest's markets
Leasinvest’s markets Office Market Luxembourg • Vacancy rate <5% of which CBD <2% • Prime rents > € 50/m²/month • Yields <4.25% - lack of investment products Belgium • Slowdown of take-up (-27% YoY) • Co-working takes up to 18% of total • Higher rental prices • Prime rent € 305/m²/yr (Treesquare at
Slide 10: Strategic vision: Investment strategy – Opportunity driven
Strategic vision 01 Investment strategy – Opportunity driven Montoyer Brussels CBD (BE) reconstruction by 2018 2016: 21y usufruct with EP Metro Group retail (LU) Tour&Taxis Royal Depot (BE) capital gain expected portfolio € 50M - 3 buildings € 108M 2011: extension Diekirch landmark office building 2
Slide 11: Strategic vision: Development strategy – Organic (re)developments
Strategic vision 02 Development strategy – Organic (re)developments Organic (re)developments… …creating value for shareholders Montoyer Brussels CBD (BE) 320 • Reconstruction by 2018 • 2016: 21y usufruct with EP 280 • capital gain expected 240 Boomerang Strassen (LU) 200 • Portfolio € 50M - 3 buildi
Slide 12: Strategic vision: Commercial strategy
Strategic vision 03 Commercial strategy – Maximizing lease duration & occupancy rates Long term evolution of occupancy rates Long term lease duration evolution 100% 7,0 99% 98% 6,0 97% 96% 95% 5,0 94% 93% 4,0 92% 91% 3,0 90% 89% 2,0 88% 87% 86% 1,0 85% Jun Jun Jun Jun Jun Jun Jun Jun Jun Dec Dec Dec
Slide 13: Strategic vision: Dividend pay-out
Strategic vision 04 Dividend pay-out • Gross dividend 2017 increased +2.04% to €5.00 over 2017 (2016: €4.90) • Net dividend amounts to €3.50 (excl. 30% WHT), vs 2016 €3.43 (excl. 30% WHT) • Gross dividend yield of 5.21% (31/12/2017) • Consolidated pay-out ratio 2017: 89.77% (2016: 86.90%) Long term
Slide 14: Portfolio overview
QO 3 Portfolio overview
Slide 15: Portfolio overview: Focused on two segments in three countries
Portfolio overview 01 Focused on two segments in three countries Portfolio split – Fair value Portfolio split – Net income 30/06/2018 30/06/2018 AT AT 10% 11% LU LU 59% € 1Bn 49% BE € 28m 30% BE 41% Logistics Logistics Retail 7% 6% 53% € 1Bn Offices € 28m Retail 39% 54% Offices 41% Including stake i
Slide 16: Portfolio overview: Market segments and geographical diversification
Portfolio overview 02 A unique combination of market segments and geographical diversification LU BE AT 8 RETAIL 1 RETAIL 3 RETAIL 7 OFFICE 6 OFFICE 0 OFFICE Retail LOGISTIC € 287,4 1 LOGISTIC 1 0 LOGISTIC Offices € 232,7 Offices € 184,8 Retail € 104,2 Retail Logistics Logistics € 50,4 € 42,4 € 20,0
Slide 17: Portfolio overview: Long term growth through a focused approach
Portfolio overview 04 Demonstrating long term growth through a focused approach Evolution of portfolio fair value per country Evolution of split in market segments In € million including stake in Retail Estates Focus on two asset classes Focus on three countries • i.e. retail and offices • i.e. Luxe
Slide 18: Portfolio overview: Solid occupancy rates
Portfolio overview 05 On the back of solid occupancy rates Occupancy rates per 30 June Duration leases till first break per 30 June Total Q1 Total Q1 Luxembourg Belgium Austria 2018 Total 2017 Luxembourg Belgium Austria 2018 Total 2017 96.18% 89.63% 100.00% 94.44% 94.80% 3.8 4.3 6.6 4.2 4.7 100,00%
Slide 19: Activity overview
04 Activity overview
Slide 20: Activity overview
Activity overview • Participation in capital increase of Retail Estates • Delivery & leases of Treesquare • Opening co-working space De Mot Malines • Renovation plan Knauf shopping center Schmiede • Delivery & full lease of extension Frun Park Asten Leasinvest.be Financial Results | H1 2018 | Leasin
Slide 21: Retail Estates (BE)
Retail Estates (BE) • Leasinvest (LRE) holds 10.47% share in BE-REIT Retail Estates (€ 91 M at 30/06/2018) RE • Subscription of capital increase for € 12.9 M in April 2018 € 330 M (198,736 new shares) RE • Real estate portfolio of € 1.38 Bn (30/06/2018) € 1,047 M LRE € 50 M LRE • Focus = clusters &
Slide 22: Delivery Treesquare (BE)
Delivery Treesquare (BE) Leasinvest.be Financial Results | H1 2018 | Leasinvest | 22
Slide 23: Redevelopment Treesquare (BE)
Redevelopment Treesquare (BE) • Successfull project at the heart of Europe Deuts che Bors e 448 s qm L+8 • Office building of 6,400 m² with high ending Emba s s y of Mona co Deuts che Bors e materials L+7 428 s qm 366 s qm RWE Boei ng • High end occupants as Deutsche Börse, Boeing, 309 s qm 485 s qm
Slide 24: Delivery Treesquare (BE)
Delivery Treesquare (BE) Leasinvest.be Financial Results | H1 2018 | Leasinvest | 24
Slide 25: Redevelopment Motstraat 30/32 (BE)
Redevelopment Motstraat 30/32 (BE) Testimonial CEO WKB Opening speech mayor Somers Testimonial CEO Excell Leasinvest.be Financial Results | H1 2018 | Leasinvest | 25
Slide 26: Redevelopment Motstraat 30/32 (BE)
Redevelopment Motstraat 30/32 (BE) • Office project of 14,174 m² • Part of the remaining office space is installed as co- working space ‘De Mot’ based on our business center concept ‘The Crescent’ in Anderlecht and Ghent – concept is much appreciated by tenants & other users • Opening reception with
Slide 27: Knauf shopping center Schmiede (LU)
Knauf shopping center Schmiede (LU) Leasinvest.be Financial Results | H1 2018 | Leasinvest | 27
Slide 28: Knauf shopping center Schmiede (LU)
Knauf shopping center Schmiede (LU) Schmiede • Strengthening the position of Knauf Schmiede as largest shopping center in the North of Luxembourg, while maintaining its ‘good deal’ and family-oriented character • Revamping of the shopping center in order to meet consumers’ expectations will start in
Slide 29: Knauf shopping center Schmiede (LU)
Knauf shopping center Schmiede (LU) Leasinvest.be Financial Results | H1 2018 | Leasinvest | 29
Slide 30: Knauf shopping center Schmiede (LU)
Knauf shopping center Schmiede (LU) Leasinvest.be Financial Results | H1 2018 | Leasinvest | 30
Slide 31: Knauf shopping center Schmiede (LU)
Knauf shopping center Schmiede (LU) Leasinvest.be Financial Results | H1 2018 | Leasinvest | 31
Slide 32: Frun Park Asten (AT)
Frun Park Asten (AT) • Acquisition November 2016 • Total annual rent: € 2.4 M • Recent (2013) and very successful retail park located at 200 km of Vienna and nearby Linz - 26 shops and 600 parking spaces; roof is equipped with solar panels • Retail concept: construction of a harmonious architectural
Slide 33: Financials & outlook
QO 5 Financials & outlook
Slide 34: Key consolidated financials 1H 2018
Key consolidated financials 1H 2018 Key figures balance sheet 30/06/2018 31/12/2017 Net asset value group share (€ 1,000) 376 595 382 206 Number of issued shares 4 938 870 4 938 870 Number of shares entitled to the result of the period 4 938 870 4 938 870 Net asset value group share per share 76.3 7
Slide 35: EPRA KPIs 1H 2018
EPRA KPIs 1H 2018 EPRA performance measures 30/06/2018 30/06/2017 EPRA Earnings* (in € per share) (1) 2.83 2.69 EPRA NAV* (in € per share) (2) 82.8 81.6 EPRA NNNAV* (in € per share) (3) 75.5 73.1 EPRA Net Initial Yield* (in %) (4) 5.49% 5.39% EPRA Topped up Net Initial Yield* (in %) (5) 5.50% 5.41%
Slide 36: Consolidated income statement
Consolidated income statement Consolidated statement of realized and unrealized results (in 1,000 €) 30/06/2018 30/06/2017 (+) Rental income 27 858 28 084 (+) Write-back of lease payments sold and discounted 0 0 (+/-) Related-rental expenses 0 0 NET RENTAL INCOME 27 858 28 084 (+) Recovery of proper
Slide 37: Consolidated balance sheet
Consolidated balance sheet ASSETS (in 1,000 euro) 30/06/2018 31/12/2017 LIABILITIES (in 1,000 euro) 30/06/2018 31/12/2017 TOTAL SHAREHOLDERS’ EQUITY 376 595 382 206 I. NON-CURRENT ASSETS 1 015 949 979 104 I. SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO Intangible assets 1 2 THE SHAREHOLDERS OF THE PARENT In
Slide 38: Funding
Funding • Cost of debt: decrease from 2.99% (2017) to 2.79% Funding diversification • Total committed lines (incl. bonds) of € 646.5m 28% • Duration credit facilities decreased from 3.34y (2017) to 3.0y Bilateral variable rate 55% Bilateral fixed rate • Available headroom credit facilities € 56m Bon
Slide 39: Funding
Funding • Debt financing – 63% fixed ratio Hedge ratio • Hedge ratio – 71% (currently 74% due to start 2 IRS for notional amount € 20 M as of 15 July) 90% Fix ratio 80% Hedge ratio • Fixed rate debt, incl. bonds (25%) and interest rate strategy swaps/Caps (46%) 70% 60% • Duration: 5.0y vs 5.15y (201
Slide 40: Outlook FY 2018
Outlook FY 2018 As already mentioned in the annual financial report 2017, Leasinvest Real Estate expects for 2018, on the one hand, a rental income in line with 2017. The funding costs, on the other hand, will decrease, also by restructuring the hedges portfolio. Except for extraordinary and unexpec
Slide 41: Financial calendar and analyst coverage
Financial calendar and analyst coverage Financial calendar 19 November 2018 Interim statement Q3 (30/09/2018) 20 February 2019 Annual results 2018 (31/12/2018) 29 March 2019 Annual financial report 2018 20 May 2019 Annual meeting of shareholders & Interim statement Q1 (31/03/2019) 27 May 2019 Divide
Slide 42: Key investment highlights
06 Key investment highlights
Slide 43: Key investment highlights
Key investment highlights 1 Unique exposure to the growing Luxembourg office and retail market 2 Diversified quality portfolio on the back of dynamic asset management 3 Proactive commercial approach translating into a high quality tenant base 4 Proven expertise in (re)development of offices 5 Strong
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