Wereldhave N.v. · EURONEXT:WHA
Wereldhave — Q1 2012 Earnings Presentation
31 slides from Wereldhave's earnings presentation, May 10, 2012
Slide 1: Investor presentation Q1 2012 results
Investor presentation Q1 2012 results
Slide 2: Recent highlights
Recent highlights • Acquisition of shopping centre ‘Shopping I’ and the Stads- en Sint- Martinusplein complex in Genk, Belgium for € 69m • Extension of shopping centre Nivelles succesfully completed. Opening 30 March, with footfall increasing since • Sale of US-Mint office in Washington DC, US for $
Slide 3: Nivelles: footfall increase since opening
Nivelles: footfall increase since opening 3
Slide 4: Q1 2012 key figures
Q1 2012 key figures • Direct result p/s: € 1.10 (-13.4% yoy) • Total result p/s: € 1.11 • Revaluation portfolio: +0.04% • NAV p/s: € 73.91 (-1.3% yoy) • Investment portfolio: € 2,765m (+0.4% yoy*) • Development pipeline ± € 476m • Occupancy 91.1% (EPRA) • LTV 41% 4
Slide 5: Total result (€ m)
Total result (€ m) Q1 2012 Q1 2011 yoy Direct result 25.6 29.0 -11.7% Indirect result 1.1 -1.4 Profit 26.7 27.6 -3.3% Minority interest 2.6 1.8 44.4% Profit for shareholders 24.1 25.8 -6.6% 5
Slide 6: Direct result (€ m)
Direct result (€ m) Q1 2012 Q1 2011 yoy Gross rental income 50.4 52.3 -3.6% Operational costs -12.0 -12.1* -0.8% Net rental income 38.4 40.2* -4.5% General costs -4.8 -3.8 26.3% Other 0.8 0.9 -11.1% Net financial costs -8.3 -7.8* 6.4% Taxes -0.5 -0.5 Direct result 25.6 29.0 -11.7% Minority interest
Slide 7: Country update
Country update • Finland: Stockmann (department store anchor) and New Yorker (first store in Finland) signed new leases in Itis • Netherlands: solid l-f-l rental growth • France: construction of ‘Noda’ office building started • Spain: lease maturities in a challenging office market • Belgium: solid
Slide 8: NRI bridge (€ m)
NRI bridge (€ m) 50 45 -4.8 2.7 40.2 40 0.6 -0.3 38.4 35 30 25 NRI Q1 2011 Acquisitions Disposals Like for like Currency/Other NRI Q1 2012 8
Slide 9: Net rental income (€ m)
Net rental income (€ m) Q1 2012 % total yoy l-f-l Total 38.4 100% -4.5% 1.9% Belgium 6.2 16.1% 12.2% 11.3% Finland 6.3 16.4% -7.0% 5.4% France 2.6 6.8% -7.0% 0.5% The Netherlands 8.9 23.3% -14.8% 2.0% Spain 1.9 4.9% 3.5% 4.5% United Kingdom 5.7 14.8% 17.7% -5.4%* U.S.A. 6.8 17.7% -14.9% -6.0%* * in
Slide 10: Occupancy (EPRA)
Occupancy (EPRA) Retail Office Other Total Total Mar 2012 Mar 2011 Belgium 99.3% 83.5% - 93.7% 93.1% Finland 99.0% - - 99.0% 96.5% France 90.8% 98.1% - 97.3% 98.1% The Netherlands 97.6% 91.7% 90.3% 96.7% 95.6% Spain 52.4% 91.1% 100% 80.2% 76.9% United Kingdom 97.6% 98.0% 100% 97.7% 99.1% U.S.A. 67.5
Slide 11: NRI core / non-core (€ m)
NRI core / non-core (€ m) Q1 2012 % total yoy l-f-l* Occu- pancy Core 25.4 66.2% 14.7% 3.1% 98.0% Non-core 13.0 33.8% -28,0% -0.2% 82.3% 38.4 100% -4.5% 1.9% 91.1% Total * in local currency 11
Slide 12: Lease expiry
Lease expiry (rent as % of contracted rent as per Mar 31) 18,0% 16,0% 1,0% 0,3% 14,0% 0,8% 1,0% 2,6% 12,0% 4,7% 5,7% 5,3% 10,0% 0,6% 8,0% 0,1% 6,0% 12,0% 4,6% 2,0% 9,0% 3,8% 0,1% 4,0% 7,8% 8,3% 7,4% 2,5% 1,7% 2,0% 2,5% 4,8% 3,7% 2,8% 2,0% 2,0% 0,9% 0,0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 13: Indirect result
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Slide 14: Indirect result (€ m)
Indirect result (€ m) Q1 2012 Q1 2011 Revaluation 0.8 -2.0 Results on sales -0.3 0.7 Deferred tax -1.2 -1.4 Net financial costs -1.0 -1.4 Other 2.8 2.7 Indirect result 1.1 -1.4 Minority interest 0.7 0.1 Shareholders 0.4 -1.5 14
Slide 15: Yield movements & cap rates Q1 2012
Yield movements & cap rates Q1 2012 Retail Office Other Resi Cap rate Belgium -0.1% +0.1% - - 6.3% Finland 0.0% 0.0% - - 5.8% France 0.0% 0.0% - - 6.0% The Netherlands 0.0% 0.0% 0.0% 0.0% 6.1% Spain 0.0% 0.0% 0.0% - 7.0% United Kingdom 0.0% 0.0% 0.0% - 6.2% U.S.A. 0.0% +0.2% - 0.0% 6.8% Cap rate 6.0
Slide 16: Revaluation Q1 2012
Revaluation Q1 2012 Yield effect - Market Rent & Other effects TOTAL -0,09% 0,13% UNITED STATES -0,43% 0,00% GREAT BRITAIN -0,10% 0,03% FINLAND 0,00% 0,00% SPAIN 0,00% 0,04% FRANCE 0,00% 0,59% BELGIUM -0,53% 1,05% THE NETHERLANDS 0,00% 0,01% -1,0% 0,0% 1,0% THE GREAT UNITED BELGIUM FRANCE SPAIN FINL
Slide 17: Balance sheet & Debt profile
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Slide 18: Balance sheet (€ m)
Balance sheet (€ m) March 2012 Dec. 2011 Dec. 2010 Total assets * 3,179.2 3,217.9 3,077.6 Interest bearing debt long -1,162.4 -1,224.1 -876.9 Interest bearing debt short -97.2 -65.0 -271.1 Deferred tax liabilities -111.6 -115.8 -129.3 Other liabilities * -81.3 -99.0 -72.2 Equity 1,726.7 1,714.0 1,72
Slide 19: Debt: conservative ratio's at low cost
Debt: conservative ratio’s at low cost • Interest bearing debt: € 1,264m (2011: € 1,289m)* • Fixed/floating: 49%/51% (Dec 11: 44%/56%)* • Average cost: 2.9% (Dec 11: 3.0%)* • LTV: 41% (Dec 2011: 41%) • ICR: 5.0x (Dec 2011: 5.4x) * On nominal basis. On IFRS basis: 3.1% (Dec 2011: 3.2%) 19
Slide 20: Debt profile March 2012
Debt profile March 2012 Type of debt Maturity profile total 1,264m* 450 414 mortgages 3% 400 350 332 US PP 23% 300 239 250 bank loans (unsecured) 200 38% 150 convertible 86 84 bond 09-14 100 77 18% 58 60 50 32 40 33 26 convertible bond 10-15 0 18% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 de
Slide 21: Future: 2012
Future: 2012 • Continuation sale US portfolio and non-core assets in Europe • Reinvestment in Western Europe • Project completion of Planetocio in July and Richmond in September • Start construction of projects in Tournai and Genk (Bel). Continued work on projects in planning phase in NL and Bel • R
Slide 22: Development pipeline
SA3YLN39 ONIiddOHS line pipe (w Wereldhave. Value for tomorrow. WERELDHAVE Development
Slide 23: Committed development pipeline
Committed development pipeline Project Location Total Capex sofar Expected net Estimated Remarks investment yield completion San Antonio I* Texas, US $ 203m/€ € 141m*** 6.75-7.25% Q2 2012 Grand opening 7th June 150m Richmond UK € 27m € 14m** 6.25-6.75% 2012 50% pre-let Joinville-le-Pont France € 71m
Slide 24: Uncommitted development pipeline
Uncommitted development pipeline Project Location Total Capex Expected net Estimated Remarks investment sofar yield completion Gent Belgium € 15m € 2m 6.75-7.0% 2013 Mixed-use; 50% retail Tournai I Belgium € 16m € 4m 7.0-7.25% 2014 Building permit request will (Retail park) be submitted in Q2 2012 G
Slide 25: San Antonio, progress report
San Antonio, progress report Number Completion Market rent Comments or m2 USD Offices 19,100 2010 Q3 21-22 p/sqf, net 5,300 sqm let (27%) Hotel & Spa 165 April 2012 100 net Rev.PAR Grand Opening 7th June rooms Apartments 539 April 2012 1.- per sqf net 127 apartments leased (24%) Retail/leisure 3,300
Slide 26: Appendix
SAYLN39 ONIddOHS Wereldhave. Value for tomorrow. Appendix WERELDHAVE
Slide 27: L-f-l NRI Q1 2012
L-f-l NRI Q1 2012 Core portfolio Other Total Belgium 3.3% 28.8% 11.3% Finland 5.4% 5.4% The Netherlands 4.0% -6.4% 2.0% United Kingdom -4.8% -6.0% -5.4%* Total 3.6% France -0.2% 5.2% 0.5% Spain 1.4% 10.6% 4.5% Total 0.4% U.S.A. -6.0% -6.0%* Total portfolio 3.1% -0.2% 1.9% * in local currency 27
Slide 28: Financial cost (€ m)
Financial cost (€ m) Q1 2012 Q1 2011 yoy direct indirect direct indirect direct indirect Interest expenses -9.3 -8.2 13.4% Amortised costs of loans -0.6 -0.6 Other non-cash costs -1.0 -1.4 -28.6% Interest income 0.1 0.2 -50.0% Capitalized interest 1.5 0.8 87.5% Net Financial Costs -8.3 -1.0 -7.8 -1.
Slide 29: EPRA lease data
EPRA lease data Average lease length Contract rent expiring in: to breakto expiry Year 1 Year 2 Year 3- (yr) (x € 1,000) 5 Belgium 2.9 6.1 4,755 6,483 14,675 Finland 3.4 3.4 8,089 3,333 6,137 France 5.7 6.7 0 1,426 1,943 The Netherlands 3.0 3.4 2,319 6,180 19,316 Spain 1.8 3.3 3,767 1,938 3,432 Unit
Slide 30: Interest rate & currency sensitivity
Interest rate & currency sensitivity Mar 2011 • Floating rate loans 51% of debt • Hedge on investments (end of (FY11: 56%)* period) • Average interest: 2.9% (Dec 11: - USD 46% (Dec 11: 54%) 3.0%)* - GBP 56% (Dec 11: 58%) • 0.5% change in interest rates • A change of 10% on period-end EPS change: € 0
Slide 31: Investor relations contact
Investor relations: Charles Bloema/Jaap-Jan Fit tel: +31(0)703074545/4543 investor.relations@wereldhave.com www.wereldhave.com