Castellana Properties Socimi Sa · BME:YCPS
Castellana Properties Socimi Sa — Investor Presentation (June 2021)
39 slides from Castellana Properties Socimi Sa's investor presentation, June 2021
Slide 1: Corporate Presentation June 2021
CORPORATE PRESENTATION JUNE 2021
Slide 2: Contents
CONTENTS ▪ COMPANY OVERVIEW ▪ ESG ▪ STRATEGY ▪ ANNEX I – COVID - 19 ▪ OUR RESPONSE TO COVID-19 ▪ ANNEX II – PORTFOLIO IN DETAIL ▪ COMPANY STANCE ▪ ANNEX III – TOP 10 ASSETS BY GAV ▪ VALUE CREATION
Slide 3: Who we are
COMPANY OVERVIEW WHO WE ARE Castellana Properties is a leading income-focused, customer-oriented and specialist retail SOCIMI (REIT) centred on investment, active management and value-enhancing repositioning of retail assets in Spain 3
Slide 4: Timeline
COMPANY OVERVIEW TIMELINE DEC 2017 NOV 2018 MAY 2019 AUG 2019 APR 2021 MAY 2015 Acquisition of Integration 4 SCs, owned by Acquisition of the units Acquisition of Puerta Acquisition of the office Acquisition of El Fresno Alameda SC & Pinatar Morzal Property: El Faro, Bahía Sur, owned by El Corte Ing
Slide 5: Main KPIs and shareholding structure
COMPANY OVERVIEW MAIN KPIS AND SHAREHOLDING STRUCTURE 18 367,015 sqm 98.3 % 13.4 years 95.2 % 95 % ASSETS GLA OCCUPANCY WAULT RENT COVID-19 SHAREHOLDING OPERATIONAL COLLECTION NEGOTIATIONS STRUCTURE CLOSED €987m (1.6 %) (4.0 %) €501m 5.81 €/share GAV FY2021 ACCUMULATED EPRA NAV EPRA NAV CORPORATE CO
Slide 6: Our portfolio
COMPANY OVERVIEW OUR OURPORTFOLIO PORTFOLIO ˃ WELL DIVERSIFIED ACROSS SPAIN 9 4% 1 El Faro 10 Marismas de Polvorín 5 9% 2 Bahía Sur 11 Alcobendas Building 11 3 Los Arcos 12 La Heredad 8 7% 17 4 Granaita 13 La Serena 16 20% 5 Vallsur 14 Pinatar Park 12 9% 6 Habaneras 15 Motril Retail Park 1 13 7 Puer
Slide 7: Our values
COMPANY OVERVIEW OUR VALUES PASSION FOR MAKE A DIFFERENCE ACT WITH INTEGRITY WHAT WE DO AS A TEAM & TRANSPARENCY COMMITTED TO CUSTOMER-CENTRIC OUR CLIENTS APPROACH SUSTAINABLE PROACTIVE & COMMITTED VALUE OUR GROWTH TO INNOVATION RELATIONSHIPS 7
Slide 8: Why Castellana Properties?
STRATEGY WHY CASTELLANA PROPERTIES? TAKING A STEP FORWARD IN RETAIL COMMITTED AT THE BUILDING ROBUST AND HIGH QUALITY ACTIVE SPECIALISTS IN RETAIL TO DELIVERING THE CUTTING-EDGE INCOME FOCUS HEALTHY GROWTH PORTFOLIO MANAGEMENT HIGHEST STANDARDS OF NEW TRENDS ▪ Specialists in the ▪ Driving up returns
Slide 9: Spain is different
STRATEGY SPAIN IS DIFFERENT RENT GROWTH FORECAST 2021-2025 ONLINE MARKET SHARE BY COUNTRY 2020 SHOPPING CENTRE DENSITY ▪ Rent’s growth of physical stores in the shopping centre ▪ In Spain, online purchases still represent only 8,7% of ▪ Spain remains “undermalled” vs developed markets, segment in Sp
Slide 10: E-commerce evolution
STRATEGY E-COMMERCE EVOLUTION SPANISH E-COMMERCE PENETRATION STAYS LOW DESPITE THE PANDEMIC, WITH ONLY 36% OF TOTAL ONLINE TRANSACTIONS COMPRISING RETAIL SALES In Spain, online purchases still represent only 8,7% of From total online transactions, only 36% E-commerce penetration forecast for Spain i
Slide 11: Customer trend
STRATEGY CUSTOMER TREND PHYSICAL SALES WILL GROW C. 8.5% OVER THE NEXT FIVE YEARS, WITH CONSUMERS DESIRING A RETURN TO STORES 91% of consumers say they will shop in physical stores once Non-food spending growth to outperform online retail 46% of connected consumers want to the pandemic is over. Bric
Slide 12: Retailers' soundings
STRATEGY RETAILERS’ SOUNDINGS “PHYSICAL SPACE” REMAINS CRITICAL IN OMNI-CHANNEL STRATEGY AND 60% OF OUR RETAILERS PLAN TO INVEST IN PHYSICAL STORES COMMITTED TO OMNICHANNEL PHYSICAL STORES PHYSICAL STORES STRATEGY PREFERENCE 60% plan to invest in improving 72% plan to invest in the 84% believe their
Slide 13: Action plan to COVID – our response
OUR RESPONSE COVID TO COVID-19 - 19 / RESULTS PRESENTATION ACTION PLAN TO COVID OUR RESPONSE ACTION PLAN HIGHLIGHTS OVER PAST 12 MONTHS – APRIL 2020 to MARCH 2021 STRONG TENANT BUSINESS IS PARTNERING WITH VALUATION & INDUSTRY ROBUST DEBT PROVIDERS ASSUMPTIONS RELATIONSHIPS ▪ Healthy treasury positio
Slide 14: Footfall & sales
OUR RESPONSE TO COVID-19 FOOTFALL & SALES STRONG REBOUND IN FOOTFALL AND SALES AS SOON AS CUSTOMERS ARE ABLE TO RETURN - LARGE RETAIL PARK EXPOSURE CONTRIBUTING TO SALES OUTPERFORMANCE FOOTFALL & SALES RECOVERY 1ST WAVE 2ND WAVE (3) 3RD WAVE (3) ▪ Larger basket sizes contributing to good sales perfo
Slide 15: Strengthening the retail portfolio metrics in the face of the pandemic
OUR RESPONSE TO COVID-19 STRENGTHENING STRENGTHENINGTHE THERETAIL RETAILPORTFOLIO PORTFOLIOMETRICS METRICSIN INTHE THEFACE FACEOF OFTHE THEPANDEMIC PANDEMIC AGREEMENTS ON TRACK WITH 95% OF ADDENDUMS CLOSED … LEADING TO STRENGTHENED TENANT RELATIONSHIPS OR UNDER ADVANCED NEGOTIATIONS... STABILISING A
Slide 16: Portfolio overview
COMPANY STANCE / CORPORATE KPI´s PORTFOLIO OVERVIEW HIGHLY DIVERSIFIED RETAIL MIX LEADING TO SUSTAINABLE, HIGH QUALITY AND LOW RISK INCOME STREAMS BREAKDOWN BY GAV AND GRI 3% 3% TOP 10 TENANT GROUPS BY RENT 31 MARCH 2021 INDITEX 11.5% 29% 32% GAV GRI ADEO 4.3% €987m(1) €59m(2) SHOPPING CENTRES MEDIA
Slide 17: GAV evolution at 31 March 2021
COMPANY STANCE / CORPORATE KPI´s GAV EVOLUTION AT 31 MARCH 2021 ACCRETIVE ACQUISITIONS AND REVALUATION WITH A PORTFOLIO VALUE OF €987m 31ST DECEMBER 31ST DECEMBER 31ST MARCH 31ST MARCH 31ST MARCH 31ST MARCH 2016 2017 2018 2019 2020 2021 INVESTMENT VOLUME €916m €1,003m €987m(1) €304m €308m €23m SPECI
Slide 18: GRI FY2021 breakdown
COMPANY STANCE / FINANCE KPI´s GRI FY2021 BREAKDOWN TEMPORARY COVID-19 AGREEMENTS REACHED TO SUPPORT OUR TENANTS NOT INCLUDING ANY SERVICE CHARGE RELIEF POTENTIAL PORTFOLIO GRI ANNUALISED OVER €66m SHOPPING CENTRES 0.3% LfL SHOPPING CENTRES €45m 68.2% RETAIL PARKS 1.3% GROWTH(1) RETAIL PARKS €19m 28
Slide 19: Leasing activity
COMPANY STANCE / BUSINESS KPI´s LEASING ACTIVITY STRONG LEASING ACTIVITY WITH POSITIVE TRENDS RESULTING IN A HEALTHY PORTFOLIO CONTINELY FOCUSED ON ASSET MANAGEMENT WITH HIGH OCCUPANCY AND STRONG COLLECTION RATES DESPITE THE COVID-19 OCCUPANCY ALMOST FULLY LET COVID-19 IMPACT Occupancy rate over 98%
Slide 20: Repositioning project
VALUE CREATION REPOSITIONING PROJECT Value-added redevelopment projects in LOS EL FARO BAHÍA SUR LOS ARCOS ARCOS, BAHÍA SUR and EL FARO, have strengthened the existing offerings and dominance of the centres through the addition of new and exciting retailers, the creation of pedestrianised open space
Slide 21: Phase II Los Arcos Shopping Centre
VALUE CREATION PHASE II LOS ARCOS SHOPPING CENTRE SOLIDIFYING THE LEADING POSITION OF LOS ARCOS, ENSURING THE BEST LEISURE AND FOOD AREA BEFORE AFTER After the acquisition of a four-storey office building adjacent to Los Arcos, comprising TOTAL INVESTMENT DEADLINE ADDITIONAL NOI over 4,600 sqm GLA,
Slide 22: Where are we? Top retail players by owned GLA
COMPANY STANCE / CORPORATE KPI´s WHERE ARE WE? – TOP 10 RETAIL PLAYERS BY OWNED GLA A FURTHER 130,000m2 ACQUISITION WOULD PLACE CASTELLANA IN THE TOP 3 551,405 m2 (1) 184,390 m2 600.000 m² 500.000 m² 367,015 m2 400.000 m² 300.000 m² 200.000 m² 100.000 m² - m² LAR ESPAÑA CARMILA UNIBAIL GGC MERLIN CA
Slide 23: Financial debt position
COMPANY STANCE / FINANCE KPI´s FINANCIAL DEBT POSITION € million 31/03/2021 30/09/2020 31/03/2020 30/09/2019 Gross Asset Value (GAV) 987.2 993.8 1,003.5 1,028.4 (1) Gross Debt 520.2 511.3 493.8 493.8 Cash 33.5 42.1 49.1 52.8 Net Debt(1) 490.5 472.7 448.4 441.0 METRICS DEBT WITH Gross LTV(2) 52.70% 5
Slide 24: Active asset management
COMPANY STANCE / CORPORATE KPI´s ACTIVE ASSET MANAGEMENT HIGHLY-QUALIFIED, DEDICATED INTERNAL TEAM WITH EXPERT RETAIL KNOWLEDGE CORPORATE VALUE ADD 1 Highly-qualified staff dedicated full time to Castellana with expert knowledge of the sector 2 asset management Strong bottom-up operational approach
Slide 25: Management team – key senior executives
COMPANY STANCE MANAGEMENT TEAM – KEY SENIOR EXECUTIVES Alfonso Brunet Debora Santamaría, MRICs CEO & EXECUTIVE DIRECTOR CFO & EXECUTIVE DIRECTOR Real Estate expert with more than 22 years of experience in Senior financial expert with more than 19 years of experience the industry, from retail and off
Slide 26: Governance
VALUE CREATION/ESG GOVERNANCE Laurence Rapp CHAIRMAN OF BOD AND CHAIRMAN OF REMCO Alfonso Brunet Débora Santamaría CEO & EXECUTIVE DIRECTOR CFO & EXECUTIVE DIRECTOR Michael John Potts Jorge Morán NON-EXECUTIVE INDEPENDENT NON-EXECUTIVE INDEPENDENT DIRECTOR DIRECTOR Nigel George Payne Adam Lee Morze
Slide 27: iCAST programme
VALUE CREATION iCAST PROGRAMME CREATING OUR OWN INNOVATION PROGRAMME TO ADAPT SHOPPING CENTRES TO EMERGING CONSUMER NEEDS AND EXCEL AS TRULY OMNICHANNEL SPACES ▪ iCAST has been designed to lead the way in innovation, create added value, spearhead transformation throughout the company, support and nu
Slide 28: Digital path
VALUE CREATION DIGITAL PATH STRENGTHENING THE PORTFOLIO WITH A POWERFUL AND UNIFIED DIGITAL CUSTOMER JOURNEY New website, app and A single platform for loyalty program in each digital channels with Shopping Centre focusing on powerful, versatile and customer centricity innovative solutions. The port
Slide 29: Digital path – food marketplace
VALUE CREATION DIGITAL PATH ˃ ORDER YOUR FOOD THROUGH SHOPPING CENTRE’S APP AND WE DELIVER YOU AT HOME! ▪ Castellana has launched the first food marketplace in a shopping centre in Spain. We aim to implement a comprehensive solution to offer our customers the possibility to order their food at any t
Slide 30: ESG strategic plan 2021-2024
VALUE CREATION ESG CASTELLANA PROPERTIES IS DEVELOPING ITS ESG STRATEGIC PLAN 2021-2024 IT IS BEING PREPARED WITH THE SUPPORT OF EY. We improve our buildings to We are committed to working We adopt the highest standards of reduce our carbon footprint and together with the communities governance in o
Slide 31: Annexes
“< CASTELLANA ANNEXES CEPRA BME
Slide 32: Impact on Spanish economy
COVID-19 IMPACT ON SPANISH ECONOMY SHARP CONTRACTION WITH REBOUND EXPECTED IN 2021 ▪ While Spain’s GDP registered a positive rebound in Q3 2020 (+16.7% vs. Q2 2020), outlook for the full year suggests a - 13% drop in GDP for 2020. The expected rebound in 2021 will take GDP growth to +7.9%. However,
Slide 33: Shopping centres considered safe spaces
COVID-19 SHOPPING CENTRES CONSIDERED SAFE SPACES CUSTOMERS TRUST IN OUR ASSETS AND RETURN TO OUR MALLS AS SOON AS RESTRICTIONS ARE LIFTED We continuously adapt our malls to continue to create exciting leisure Extra security & staff activities…. New booking to enforce Use of interior spaces Digital a
Slide 34: Taking advantage of the entire portfolio
COVID-19 TAKING ADVANTAGE OF THE ENTIRE PORTFOLIO CONTINUOUSLY LAUNCHING EXCITING AND IMPACTFUL EVENTS ACCROSS THE PORTFOLIO TO DRIVE TENANT’S SALES, AS WELL AS FOSTERING BROADER COMMUNITY BENEFITS SUPERTHINGS PORTFOLIO ROADSHOW CHRISTMAS PORTFOLIO CAMPAIGN +20% 11,6K €386k FOOTFALL DURING PARTICIPA
Slide 35: Portfolio detail at 31 March 2021
ANNEX I PORTFOLIO DETAIL AT 31 MARCH 2021 PROPERTY ACQUISITION GLA PARKING MARKET OCCUPANCY DESCRIPTION DATE (m²) SPACES VALUE (%) 1 El Faro 31/07/2018 40,318 2,840 159,430 98.17% 2 Bahía Sur 31/07/2018 35,333 2,818 140,770 98.65% 3 Los Arcos 31/07/2018 26,680 1,800 135,910 95.18% 4 Vallsur 31/07/20
Slide 36: Top 10 assets by GAV overview 1/2
ANNEX II TOP 10 ASSETS SPANISH BY GAVOVERVIEW PORTFOLIO AT 31 MARCH 2021 1/2 TOP 10 ASSETS EL FARO BAHÍA SUR LOS ARCOS GRANAITA (1) VALLSUR GAV €159.4m €140.8m €135.9m €105.7m €87.2m Province Badajoz Cádiz Seville Granada Valladolid Catchment Area (Inhabitants) 517,491 674,250 1,499,884 628,002 477,
Slide 37: Top 10 assets by GAV overview 2/2
ANNEX II TOP 10 ASSETS SPANISH BY GAVOVERVIEW PORTFOLIO AT 31 MARCH 2021 2/2 TOP 10 ASSETS HABANERAS PUERTA EUROPA PARQUE OESTE (1) PARQUE PRINCIPADO MARISMAS DEL POLVORÍN GAV €83.8m €65.0m €49.0m €34.6m €26.7m Province Alicante Cádiz Madrid Oviedo Huelva Catchment Area (Inhabitants) 531,670 311,110
Slide 38: Disclaimer
RESULTS PRESENTATION DISCLAIMER PURPOSE OF THIS PRESENTATION AND LIABILITY ACCOUNTING STANDARDS APPLIED This document has been prepared by Castellana Properties SOCIMI, S.A. ("Castellana Properties") This document and the information presented herein was prepared by Castellana Properties solely with
Slide 39: Contact
Rubén Darío, 3 28010 Madrid (+34) 91 426 86 86 www.castellanaproperties.es
Castellana Properties SOCIMI — Investor Presentation (June 2021) on 6ix