Wereldhave N.v. · EURONEXT:WHA
Wereldhave — Investor Day (November 2023)
17 slides from Wereldhave's investor day presentation, Nov 2, 2023
Slide 1: Agenda
Agenda 1 Welcome Management update Matthijs Storm & Dennis de Vreede LifeCentral Strategy update Joost van der Zee ESG & Sustainability Mart van Kuijk Coffee break 15 min. Leasing market and commercial update Pieter Polman Operations update Jean-Philippe Pinteaux Lunch Full Service Center tours Cape
Slide 2: Wereldhave
Slide 3: 2020 – 2023 timeline
2020 – 2023 2019 – 2020 2013 – 2019 2012 – 2012 2023 2023 2012 2011 2010 19
Slide 4: LifeCentral Strategy launched in 2020: Transform assets, strengthen balance sheet and expand
LifeCentral Strategy launched in 2020: Transform assets, Strengthen balance sheet and Expand Mission: help consumers fulfill everyday life needs any tts noode 20 LifeCentral: much broader focus than retail 0 ea AS J, y i) Wereldhave
Slide 5: 1) Source: Euromonitor 2) Source: Statista Market Insights
1) Source: Euromonitor 2) Source: Statista Market Insights
Slide 6: Wereldhave's outperformance versus our predicted trough
Wereldhave’s outperformance versus our predicted trough EPS driven by strong rental performance and cost savings Partially driven by higher than expected Tenants with a Red Flag in 2020 vs. current Expected Rent Levels vs. Actual Rent Levels 2020 vs. 2023; % of SQM; not-transformed assets only 2020
Slide 7: By year-end 2023 we will have successfully transformed assets into Full Service Centers
By year-end 2023 we will have successfully transformed 9 assets into Full Service Centers, all above our IRR threshold Raised IRR threshold to 7% based Improved transformation plans of assets in the original “hold-bucket” FSC Deliveries until 2023 on increased interest _ Presikhaaf v Execute LifeCen
Slide 8: Asset-by-asset approach to design FSCs
To design these FSCs we follow an asset-by-asset approach including a Red Flag analysis, Blueprint and business case Strategic Imp Asset-by-asset approach to design FSCs Determine Wereldhave Asset-by-asset assessment Blueprint & business foundation & red flag analysis z= core: anchor tenants 8 vet e
Slide 9: Data driven red flag analysis and Blueprints
Data driven red flag analysis and Blueprints + An important step in the Blueprint development process is a data driven assessment of the viability of each tenant * Tenants are assessed based on their sales data and payment behavior: * OCR above threshold = Flagged * Sales delta vs previous year smal
Slide 10: The completed Full Service Centers are outperforming the rest of the portfolio
The completed Full Service Centers are outperforming the rest of the portfolio Footfall Total Property Return” Retail Sales % delta 2023 YTD vs. 2019 YTD FY 2022 + H1 2023 % delta 2023 Q3 vs. 2022 Q3 21% 10% 13% IRR Hurdle > ---=====------ 9% -5% Full Service Other Assets Full Service Other Assets F
Slide 11: Yield compression versus the market
Yield compression versus the market 27 Continued evidence for FSC yield compression Yield compression since start of FSC Transformation bps Vier Meren (88) Cityplaza Eggert Kronenburg Presikhaat Sterrenburg NL Market Yield Shopping Belle-lle Ring Kortrijk BE Market Yield?” During launch of LifeCentr
Slide 12: Increasing shares of mixed-use and daily life retail make our tenant mix more resilient
Increasing shares of mixed-use and daily life retail make our tenant mix more resilient Mixed-use development 2019 — 2023 Q3 % of SQM 20.0% 13.2% 13.6% 9.4% 10.0% Tt B B 2019 2020 2021 2022 2023 Q3 Blueprints Daily life tenants development 2019 — 2023 Q3. 9 % of MGR 71.0% 65.0% 62.0% 60.0% 53.0% 51.
Slide 13: Rent levels post transformation to mixed-use did not decrease
Rent levels post transformation to mixed-use did not decrease as underperforming and low paying tenants were replaced... Basic-Fit replaced not paying and bankrupt tenant Sportsworld went bankrupt and did not pay rent for a long time. Sportsworld itself replaced the bankrupt V&D Basic-Fit, combined
Slide 14: The mixed-use has filled vacant and previously sub-optimally used space
... the mixed-use has filled vacant and previously sub- optimally used space... Healthcare cluster filled vacant and hard to let units Basic-Fit filled vacant and unlettable unit Wereldhave
Slide 15: Rent paid by the mixed-use tenants is higher than we expected
... and the rent paid by the mixed-use tenants is higher than we expected Actual rent levels vs. expected rent levels in 2019 €/m? 247 F&B Fitness Healthcare Hl 2019 estimates i Current a Wereldhave
Slide 16: Conclusions
Conclusions Physical retail has performed better than expected since launch of LifeCentral, both in the market and in the Wereldhave assets, which has driven Wereldhave’s outperformance together with cost savings By year-end 2023 we will have successfully transformed 9 assets into Full Service Cente
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