Prodea Real Estate Investment Co. Sa · ATHEX:PRODEA
Prodea Real Estate Investment Co. Sa — Investor Presentation (March 2022)
39 slides from Prodea Real Estate Investment Co. Sa's investor presentation, March 2022
Slide 1: Company Presentation as of 31.12.2021
Company Presentation as of 31.12.2021 March 2022
Slide 2: Table of Contents
Table of Contents 1 PRODEA Snapshot 2 2 Company Insights 8 3 Appendix 30 1
Slide 3: PRODEA Snapshot
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Slide 4: Top-tier seasoned management team
Top-tier seasoned management team Christophoros Papachristophorou Aris Karytinos Theresa Messari Athanasios Karagiannis Executive Chairman of the Board CEO, General Manager, CIO, of Directors & Chairman of the Member of the Investment COO & CFO Member of the Investment Investment Committee Committee
Slide 5: Clear strategic goals
Clear strategic goals ▪ Benefit from the positive momentum in the Greek market ▪ Lack of new stock ▪ Increased tenant demand for quality spaces ▪ Increase in rents ▪ Compressing yields ▪ Strong emphasis on green portfolio of office aiming to become the biggest green office owner in the region ▪ Redu
Slide 6: PRODEA at a glance
PRODEA at a glance A leading company in Real Estate investments Key portfolio KPIs High-quality diversified Largest REIC in Greece(1) ✓ Largest Greek REIC(1) with footprint across Greece and Cyprus portfolio (“Hellenic market”) and presence in Italy €2.3bn 94.9% ✓ Unique, market-leading platform ben
Slide 7: PRODEA has a strong track record of growth
PRODEA has a strong track record of growth… GAV (in €m) Key Events Appraised value of prior year’s asset base Asset acquisitions or received contributions NBG founded Pangaea as its real estate 2010 subsidiary and fully controlled REIC Invel led consortium acquired 66% 2013 stake Evolution of Greek
Slide 8: …achieved with a well-defined strategy
…achieved with a well-defined strategy Disciplined acquisition Active asset management Optimal financing ▪ Acquisitions driven by fundamentals ▪ Maintain revenue visibility - high ▪ Target c.45-50% Net LTV and a long-term holding mentality occupancy ▪ Maintain access to multiple sources of ▪ Emphasi
Slide 9: Company Insights
2 Company Insights 8
Slide 10: Macro recovery momentum in Greece
Macro recovery momentum in Greece After significant reforms to aid the country’s recovery from deep economic depression, Greece’s macro-outlook has strengthened, boosting investors’ confidence in the country’s prospects. Greek economic growth is expected to remain robust in the following years Real
Slide 11: Favorable Greek RE sector fundamentals
Favorable Greek RE sector fundamentals Despite the evident contraction of the RE yields in Greece over the last 5-6 years, they are still attractively trailing behind those of other EU countries Evolution of Real Estate Yields in Greece Prodea vs. Greek & European Yields(1) Prime Office Yield Trends
Slide 12: Well diversified portfolio
Well diversified portfolio Breakdown of PRODEA portfolio by asset class Bank branches 18% Hospitality 8% Retail / Big boxes 19% AUM (1) : €2.5bn Logistics Offices 3% Other(2) 47% 5% Overall, Prodea maintains a low dependence on any single asset class or individual property Source: Company informatio
Slide 13: High rental yielding portfolio with superior KPIs
High rental yielding portfolio with superior KPIs 49% 19% 20% 12% Offices Bank branches Retail Logistics / Hospitality / Total Other(1) No. of properties(2) 70 177 97 29 373 GLA(3) (000 sqm) 636 159 361 228 1,383 GAV Appraised value 2,327 (in €m)(3),(4) 1,133 444 477 273 93% 98% 97% 98% 95% Occupanc
Slide 14: Footprint across attractive and prime locations
Footprint across attractive and prime locations Map is not to scale Hellenic market: 318 properties in Greece and 24 properties in Cyprus Italy: 27 assets in 16 cities Value: €1,831m | GLA: 1,102k sqm | Occupancy: 96.7% | Key cities(4): 81.7% Value: €393m | GLA: 201k sqm | Occ.: 85.6% | Key cities(4
Slide 15: A portfolio leased to strong creditworthy tenants
A portfolio leased to strong creditworthy tenants, comprising financial and governmental institutions, as well as well-known corporates Top 5 tenant mix Rent (%) Main lease features National Bank of Greece ✓ Favorable lease terms minimizing cash flow leakage One of Greece’s largest banks in terms of
Slide 16: Mediterranean Hospitality Venture
Mediterranean Hospitality Venture ▪ Mediterranean Hospitality Venture (“MHV”), focuses on large high-end resort hospitality investments with significant development upside potential ▪ PRODEA holds a 25% stake in MHV together with reputable and experienced co-investors ▪ MHV’s main hospitality market
Slide 17: Under-development and new projects
Under-development and new projects c.€600m of projects(1) | More than 417,000sqm | 66% Closed / under development | 87% Green certified Mixed Use (Office & Retail) 4% Conventional In Negotiations 13% 17% Logistics 25% New Approved Progress Segment Offices Energy 17% 62% Hotels & Green Certified Unde
Slide 18: Potential Annualized Rent Evolution from Under Development Projects
Potential Annualized Rent Evolution Generated from Under Development Projects Potential Annualized Rent Evolution from Under-development projects 28.0 26.1 23.5 23.5 24.0 23.5 20.0 16.6 16.0 14.0 14.0 14.0 12.0 12.0 10.7 4.4 4.4 8.0 9.5 9.5 9.5 9.5 4.0 2.5 7.6 6.4 €'mn 1.8 - 0.7 H1 2022 H2 2022 H1 2
Slide 19: Green assets: eLement – Marousi
Green assets: eLement – Marousi A state-of-the-art Grade A office building in Marousi’s business district. The building, which was just completed and has been fully let, has a total surface of 13,900sqm and expected to be certified with LEED Platinum level ✓ Asset Name: eLement, Marousi ✓ Asset Clas
Slide 20: Green Assets: Moxy Athens City
Green Assets: Moxy Athens City Moxy Athens City is set to become the first certified Green hotel in Greece ✓ Asset Name: Moxy Athens City ✓ Asset Class: Hotel (10,000 sqm – 200 rooms) ✓ Expected Certification: LEED Gold ✓ Completion: Q1 2022 19
Slide 21: Green Assets: IQ Hub – Marousi
Green Assets: IQ Hub – Marousi A state-of-the-art Grade A office building in Marousi’s business district. The building, which has been fully pre-let, has a total surface of 14,700sqm and upon completion it will be certified with LEED Gold or Platinum level ✓ Asset Name: Funnel, Marousi ✓ Asset Class
Slide 22: Green Assets: The Wave – Syggrou 44
Green Assets: The Wave – Syggrou 44 Full renovation and repositioning of 5,600sqm green office building close to Syggrou metro station, with spectacular views to the Acropolis. Prodea has signed HoT for the whole property and lease agreement is being negotiated ✓ Asset Name: The Wave, Syggrou Ave. 4
Slide 23: Green Assets: Importex - Syggrou & Lagoumtzi
Green Assets: Importex - Syggrou & Lagoumtzi 40 A modern, sustainable, high quality office complex on Syggrou avenue, enjoying high visibility and ease of access, in close proximity to the center of Athens. The complex, designed by the international office Barnett Associates, consists of two autonom
Slide 24: Green Assets: Piraeus Tower
Green Assets: Piraeus Tower A landmark building which is located in Piraeus Port. “Piraeus Tower” consists of 22 floors with a total area of c.30,000sqm. The redevelopment of the building is being executed through a joint venture with a developer where PRODEA participates with a 30% stake. The tower
Slide 25: Strong financial performance and robust capital structure
Strong financial performance and robust capital structure Financial Performance (in €m) Total shareholders’ return per share IRR: c.11%(6) 136 8.06 134 134 Multiple: c.2.0x 7.30 0.29 6.90 109 2.30 101 102 5.63 6.09 1.34 1.95 5.10 5.31 1.05 4.93 0.83 72 0.43 0.63 70 4.05 61 5.56 5.35 5.47 4.67 4.68 4
Slide 26: Significant amount invested in green certified buildings
E S G Significant amount invested in green certified buildings ✓ Asset name: Karela Office Park ✓ Asset name: NBG IT Center, Gerakas ✓ Asset Class: Office ✓ Asset Class: Office ✓ Certification: LEED Gold ✓ Certification: LEED Gold Certified Green Assets ✓ GAV: €128m ✓ GAV: €76m as of 31.12.2021 GAV:
Slide 27: Corporate Social Responsibility
E S G Corporate Social Responsibility “Structures of Responsibility” a continuously evolving plan of social actions and interventions Infrastructure work / refurbishment of health Refurbishment and operational upgrade of facilities, such as hospitals and nursing homes social structures, infrastructu
Slide 28: Solid corporate governance - Top-tier seasoned, inclusive management team
E S G Solid corporate governance - Top-tier seasoned, inclusive management team PRODEA has been implementing policies that contribute to an effective Corporate Governance structure, cultivating a corporate culture of integrity, diversity and inclusiveness, leading to a sustainable business BoD Diver
Slide 29: Proven ability to generate value
Proven ability to generate value Assets with solid fundamentals, rental growth and rental yield compression potential Selectiveness ✓Prime location ✓Attractive risk/return profile ✓Environmental efficiency GAV growth: 3x(1) €1.5bn Track-record even during Greek financial crisis of acquisitions s
Slide 30: Existing pockets of value, aiming to deliver high total returns
Existing pockets of value, aiming to deliver high total returns Alpha driven – Achieved through management’s actions, less market dependant NAV growth NAV value creation NAV value creation NAV value creation 6.9% Almost risk-free dividend yield Active AM Rental yield compression Rental yield compres
Slide 31: Appendix
3 Appendix 30
Slide 32: Well diversified portfolio - selected assets
Well diversified portfolio - selected assets LEED Gold LEED Gold BREEAM – Very Good Offices Karela Office Park, Athens PRODEA HQ Sofia City Tower, Bulgaria eLement, Marousi LEED Gold Hotels NBG IT Center, Gerakas Lazart, Thessaloniki Aphrodite Hills, Cyprus Parklane Hotel, Cyprus Retail Metrocomplex
Slide 33: REIC framework in Greece
REIC framework in Greece REIC vs. Societe Anonyme: tax efficient structure Key REIC requirements REIC Societe Anonyme Investments and liquid ▪ At least 80% of the assets must be invested in real Corporate income estate assets taxed at 22% on taxable profit tax 10%*(ECB rate + 1%) ▪ Development cost
Slide 34: Consolidated statement of financial position – IFRS
Consolidated statement of financial position – IFRS Amounts in € ’000s Dec-2019 Dec-2020 Dec-2021 Assets Non-current assets Investment property 2,090,040 1,918,015 2,279,958 Equity method investments and investments in joint ventures 11,006 15,995 104,972 Property and equipment 110,035 10,929 10,632
Slide 35: Consolidated income statement – IFRS
Consolidated income statement – IFRS Amounts in € ’000s Dec-2019 Dec-2020 Dec-2021 Continuing Operations Revenue 135,554 133,897 134,204 Net gain / (loss) from fair value adjustment of investment property 175,078 (7,573) 96,723 Gain from disposal of investment property 19,120 4,748 197 Direct proper
Slide 36: EBITDA and FFO calculations
EBITDA and FFO calculations EBITDA Amounts in € ’000s Dec-2019 Dec-2020 Dec-2021 Profit for the period from continuing operations 296,928 62,946 175,081 Plus: Depreciation and Amortization 142 464 556 Plus: Net Finance costs 20,519 29,020 37,776 Plus: Taxes 14,035 2,260 3,222 EBITDA 331,624 94,690 2
Slide 37: NAV break-down
NAV break-down Amounts in € ’000s Dec-2019 Dec-2020 Dec-2021 Shareholders’ Equity 1,418,444 1,365,687 1,396,080 (less): IFRS Adjustment (1) 848 2,220 251 NAV 1,419,292 1,367,907 1,396,311 (1) Difference between the NBV and the market value (as determined by the independent statutory valuers) of the
Slide 38: Disclaimer
Disclaimer By viewing or receiving this presentation, you are agreeing to be bound by the following limitations. This corporate presentation (the CP) has been prepared by Prodea Real Estate Investment Company Societe Anonyme (the Company) and has not been independently verified. Τhe Company does not
Slide 39: Disclaimer (continued)
Disclaimer (continued) Forward Looking Statements Certain statements in this presentation are forward-looking. This presentation also includes certain forward-looking information related to the Company’s pipeline. Such information is given only based on Company’s reasonable expectations or estimates
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