Nextensa · EURONEXT:NEXTA
Nextensa — Leasinvest Real Estate — H1 2019 Earnings Presentation
63 slides from Nextensa's earnings presentation, Aug 22, 2019
Slide 1: Leasinvest Real Estate 1H 2019 results
Leasinvest Real Estate 1H 2019 results 22/08/2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by the management of Forward looking statements Leasinvest Real Estate SCA, a Belgian public real estate investment company (“Leasinvest” or the “Company”), solely for your information This Presentation includes forward-looking statements that reflect t
Slide 3: Table of contents
Table of contents 1. Activity overview p. 4 2. Portfolio overview p. 22 3. Highlights 1H 2019 p. 31 4. Financials & outlook p. 34 5. LRE share p. 43 Appendices p. 47
Slide 4: Activity overview
Activity overview
Slide 5: Investments
Agreement with Immo Lux-Airport SA for the acquisition of the EEBC buildings B and E in the EBBC Business Park in Luxembourg Investments Optional dividend & extra shares 1H 2019 | Leasinvest - 5 Leasinvest.be Retail Estates
Slide 6: Agreement Immo Lux Airport EBBC B & E (LU)
Agreement Immo Lux Airport EBBC B & E (LU) 6
Slide 7: Business park ~ 27,000 m² Rebranding
Business park ~ 27,000 m² LRE is also redeveloping the site to build a stronger business community with advanced services to occupants (restauration, kinder garden + add fitness, co-working, etc.) & shared IT services, LRE now owns 5 of 6 buildings on total EBBC site Investment price benefit from ne
Slide 8: Retail Estates (BE)
Retail Estates (BE) Leasinvest (LRE) holds 10.49% share in BE-REIT Retail Estates (€ 107.3 m at 30/06/2019) € 9.2 m investment in optional dividend and 75,000 extra shares to keep >10% stake Real estate portfolio of € 1.5 bn (30/06/2019) Focus = clusters & retail parks (82% of total portfolio) Portf
Slide 9: Developments
Montoyer 14 (BE) Hangar 26/27 (BE) Developments 1H 2019 | Leasinvest 9 Leasinvest.be Knauf Schmiede (LU) Knauf Pommerloch (LU)
Slide 10: Montoyer CBD Brussels (BE)
Montoyer 14 CBD Brussels (BE) 10
Slide 11: Redevelopment Montoyer 14 in the European Quarter
Office building of 4,000 m² to redevelop ERV of € 1.2 m Redevelopment Montoyer 14 Investment Price: in the European Quarter € 23.5 m Design: First higher wooden Archi2000 Architects construction (Brussels) C02 neutral passive building Building permit New generation of request ‘recyclable buildings i
Slide 12: Acquisition Hangar 26/27 (BE)
Acquisition Hangar 26/27 (BE) 12
Slide 13: Hangar 26/27 retail and offices
Danish architects CF Moller have been Retail and offices appointed to design a 9,395 m² high-end mixed projects with extension of offices and retail Building permit request will be introduced beginning of 2020 Construction works foreseen to start in Q4 2020 Investment Price: € 23 m New lease for ren
Slide 14: Redevelopment Knauf shopping center Schmiede (LU)
Redevelopment Knauf shopping center Schmiede (LU) 14
Slide 15: Strengthening position as largest shopping center in North Luxembourg
Strengthening position as largest shopping center in the North of Luxembourg Extension of ~ 8,000 m² Opening C&A Family store of 976 m2 Extension H&M & Delhaize: 1H 2020 Foreseen Capex: Finalization interior € 30 m redesign: end 2019 Reception Q3 2021 1H 2019 | Leasinvest 15 Leasinvest.be
Slide 16: Redevelopment Knauf shopping center Pommerloch (LU)
Redevelopment Knauf shopping center Pommerloch (LU) 16
Slide 17: Extension of parking, additional commercial & office space
Extension of parking additional commercial & office space (both 850 m2) Extension of Leonidas Chaqwa coffee formula 1H 2019 | Leasinvest 17 Leasinvest.be Works evolve as scheduled (March 2019 – April 2020)
Slide 18: Leases
Frun® Park Asten & Gewerbepark Stadlau: 100% occupancy (extension & renewals) Tour & Taxis Royal Depot: high occupancy thanks to a number of renegotiations and Monnet, EBBC and Esch: extensions new leases signed in coming months, solving rental vacancy Brixton Business Park, Leases Riverside Busines
Slide 19: Corporate governance
Corporate governance
Slide 20: Board of Directors & Management
Jan Suykens Piet Dejonghe Chairman Director CEO & chairman member Executive Executive Committee Committee Ackermans Ackermans & van Haaren & van Haaren Directors nominated by AvH Michel Van Geyte Executive director Jean-Louis Appelmans Director CEO Leasinvest Real Estate non-executive director (ex-C
Slide 21: Board of Directors & sub-committees
BoD AC BRC Jan Suykens Chairman, non-executive director X (chairman) Michel Van Geyte Managing director Piet Dejonghe non-executive director X Jean-Louis Appelmans* non-executive director Dirk Adriaenssen Independent director Board of Eric Van Dyck Independent director X Directors & Marcia De Wachte
Slide 22: Portfolio overview
Portfolio overview Knauf Shopping Center Schmiede (LU)
Slide 23: Portfolio overview: two segments in three countries
Portfolio overview 01 Focused on two segments in three countries Portfolio split – Fair value Portfolio split – Net income 30/06/2019 30/06/2019 AT Logistics AT Logistics 10% 6% 10% 8% Offices 40% LU Offices BE € 1.06 bn 55% € 1.06 bn 51% € 32 m LU € 32 m 35% BE 57% Retail 33% 43% Retail 52% Excludi
Slide 24: Portfolio overview: market segments and geographical diversification
Portfolio overview 02 A unique combination of market segments and geographical diversification LU BE AT FV | € 581.5 m FV | € 366.3 m FV | € 107.3 m Yield | 6.51% Yield | 6.48% Yield | 5.41% 350,00 Retail Offices Offices 300,00 294.8 264.5 300,00 268.7 250,00 250,00 200,00 200,00 Retail 150,00 150,0
Slide 25: Portfolio overview: long term growth through focus
Portfolio overview 03 Demonstrating long term growth through a focused approach Evolution of portfolio fair value per country Evolution of split in market segments including stake in Retail Estates Focus on three countries Focus on two asset classes • i.e. Luxembourg – Belgium – Austria • i.e. retai
Slide 26: Portfolio overview: occupancy rates
Portfolio overview 04 On the back of solid occupancy rates Occupancy rates per 30 June 2019 Duration leases till first break per 30 June 2019 Luxembourg Luxembourg Belgium Belgium Austria Austria Total1HQ1 2018 2019 Total 2017 Total 2018 Luxembourg Luxembourg Belgium Belgium Austria Austria Total Q1
Slide 27: Leasinvest's markets: office market
Belgium Take-up Brussels (+120% YoY) Leasinvest’s of which 55% in projects Vacancy rate: 7.6% (CBD 3.3%) markets Prime rent CBD: 315€/m2/y (Treesquare at € 330/m2/y) Office Market Investments: € 1.2 bn (+7% YoY) (1H 2019) Prime yield: 4.15% (LT 3.5%) Luxembourg Vacancy rate ~ 3.6% take-up: 41,334 m2
Slide 28: Leasinvest's markets: retail market
Leasinvest’s markets Retail Market (1H 2019) Luxembourg Austria Rental market: take-up 14,261 m2 - Increasing online sales lead to a shopping centers +50% vs 5-y 1H stagnation of retail spaces average & representing 50% of total, due to completion of several projects Retail sales and retail space pe
Slide 29: Leasinvest's markets: Luxembourg economy
Luxembourg is a key intermediary of global capital flow with more than 4 .16 tn of assets under management Luxembourg has been an employment magnet for neighboring countries and beyond Economic performance has remained strong in 2018, with a GDP growth of 3.6%, with 4.0% forecasted for 2019 The exte
Slide 30: Leasinvest's markets: Austria
Vienna is While demand for retail properties remains high, supply is limited, the best weighting on yields. place to live The production of new space for retail worldwide parks and shopping centres has Leasinvest’s basically come to a standstill. Most of the attractive development markets locations
Slide 31: Highlights 1H 2019
Treesquare (BE) Highlights 1H 2019
Slide 32: Highlights 1H 2019
EPRA earnings rise by 58% to ~ € 22.1 m from ~ € 14.0 m (1H 2018 & including dividend from RE) Net result € 25.3 m (€ 4.27/share) vs € 19.7 m Dividend 2018 +2% (1H 2018, € 3.99/share) Highlights € 5.10/share 1H 2019 Debt ratio at EPRA earnings Weighted average 55.70% increase by lease 5.3% toof€ ter
Slide 33: Dividend evolution
Long term EPS & Gross DPS evolution 6,5 Dividend evolution 6,0 5,5 5,0 4,5 Gross dividend 2018 increased +2% 4,0 to € 5.10 over 2018 (2017: € 5.00) 3,5 Net dividend 2018 amounts to € 3.57 (excl. 30% 3,0 2014 2010 2012 2013 2015 2016 2017 2018 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 WH
Slide 34: Financials & outlook
Financials & outlook
Slide 35: Key consolidated financials 1H 2019
Key figures balance sheet 30/06/2019 31/12/2018 Net asset value group share (€ 1,000) 464 431 475 811 Weighted average number of shares after capital increase on 5 926 644 5 179 724 04/10/2018 Number of shares at closing date 5 926 644 5 926 644 Net asset value group share per share 78.4 80.3 Net as
Slide 36: EPRA KPIs 1H 2019
EPRA performance measures 30/06/2019 30/06/2018 EPRA Earnings* (in € per share) (1) 3.73 2.83 EPRA NAV* (in € per share) (2) 89.07 82.84 EPRA NNNAV* (in € per share) (3) 80.3 75.46 EPRA Net Initial Yield* (in %) (4) 5.32% 5.49% EPRA KPIs EPRA Topped up Net Initial Yield* (in %) (5) EPRA Vacancy* (in
Slide 37: Consolidated income statement
Consolidated statement of realized and unrealized results (in 1,000 €) 30/06/2019 30/06/2018 (+) Rental income 32 377 27 858 (+) Write-back of lease payments sold and discounted 0 0 (+/-) Related-rental expenses -202 0 NET RENTAL INCOME 32 175 27 858 2 (+) Recovery of property charges 76 (+) Recover
Slide 38: Consolidated balance sheet
ASSETS (in 1,000 euro) 30/06/2019 31/12/2018 LIABILITIES (in 1,000 euro) 30/06/2019 31/12/2018 I. NON-CURRENT ASSETS 1 192 663 1 116 270 TOTAL SHAREHOLDERS’ EQUITY 464 431 475 811 Intangible assets 0 0 I. SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO THE SHAREHOLDERS 464 431 475 811 Investment properties 1 0
Slide 39: Funding
Rental yield vs funding cost Funding 8% 7% 6% Funding 5% diversification 4% 3% Cost of debt: decrease 2% from 2.59% (2018) 1% to 2.34% (1H 2019) 0% 28% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H 2019 Total committed lines 56% (incl. bonds) of € 610.0 m Rental yield Funding c
Slide 40: Hedging
Hedging Hedge ratio 90% Debt financing – 52% fixed ratio Fix ratio 80% Hedge ratio (30/06/2019) – 81% Hedge ratio 70% strategy Fixed rate debt, incl. bonds (29%) and interest rate swaps (52%) 60% Duration hedges: 6.61y 50% vs 5.35y (2018) 40% New forward starting derivatives purchased (Interest Rate
Slide 41: Outlook FY 2019
Treesquare (BE) Outlook FY 2019 As already mentioned in the annual financial report 2018, subject to extraordinary circumstances, LRE expects a higher rental income in comparison with 2018, while the financial costs are expected to be in line with those of the previous year. However, we have to take
Slide 42: Financial calendar and analyst coverage
Financial calendar 14 November 2019 Interim statement Q3 (30/09/2019) 19 February 2020 Annual results FY 2019 (31/12/2019) 30 March 2020 Annual financial report 2019 Financial 18 May 2020 Interim statement Q1 (31/03/2020) & annual meeting calendar 25 May 2020 Dividend payment and analyst 20 August 2
Slide 43: Share price performance
Strassen (LU) Share price performance
Slide 44: Share performance
320 280 240 Share performance 200 160 120 80 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 share price LRE EPRA Eurozone Index EPRA Belgium Index 1H 2019 | Leasinvest 44 Leasinvest.be
Slide 45: Share performance
Share performance 1H 2019 | Leasinvest 45 Leasinvest.be Figures till 9 August 2019 included
Slide 46: Share performance: performance report July 2019
Performance report July 2019 Share performance 1H 2019 | Leasinvest 46 Leasinvest.be
Slide 47: Appendices
Knauf Shopping Center Schmiede (LU) Appendices
Slide 48: Investor relations team
Investor relations team Michel Van Geyte Tim Rens Chief Executive Officer Chief Financial Officer Michel Van Geyte (53) joined Leasinvest Real Estate in August Tim Rens (38) joined Leasinvest 2004. He is CEO and executive Real Estate as CFO in May 2017. director of Leasinvest Real Estate and Leasinv
Slide 49: Key investment highlights
Key investment highlights
Slide 50: Key investment highlights
Key investment highlights 1 2 3 4 5 Unique exposure Diversified quality Proactive Proven expertise in Strong dividend to the growing portfolio on the commercial (re)development of track record Luxembourg office back of dynamic approach buildings and retail market asset management translating into a
Slide 51: Company profile & strategic vision
Company profile & Strassen (LU) strategic vision
Slide 52: Company profile
AT Company profile Logistics 10% 6% Fair value Fair value Offices LU 51% € 1.06 bn Fair value portfolio BE € 1.06 bn 55% € 1.06 bn € 1.16 bn (incl. participation in Retail Estates) 35% Retail 43% ~ € 634 m Market capitalization 16/08/2019 30/06/2019 30/06/2019 Shareholders • Ackermans & van Haaren 3
Slide 53: Strategic vision: opportunity driven investment strategy
Strategic vision 01 Investment strategy – Opportunity driven Metro Group retail (LU) Tour & Taxis Royal Depot portfolio € 50 m - 3 buildings (BE) € 108 m 2011: extension Diekirch landmark office building 2017-2020: redevelopment Strassen in Brussels Knauf shopping (LU) Dexia Immo Lux (LU) Schmiede &
Slide 54: Strategic vision: opportunity driven investment strategy
Strategic vision 01 Investment strategy – Opportunity driven Hangar 26-27 Antwerp (BE) Iconic building Eilandje district Mercator (LU) € 23 m 2017: further growth in LU € 35 m Stadlau (AT) Frun Park, Retail Park 2017: further EBBC (LU) Asten (AT) growth in AT 2 additional buildings in BP of 6 office
Slide 55: Strategic vision: organic (re)developments
Strategic vision 02 Development strategy – Organic (re)developments Montoyer Brussels CBD (BE) Boomerang Strassen (LU) Reconstruction by 2018 2017-2020: redevelopment Strassen 2016: 21y usufruct with EP 1H 2019 | Leasinvest 55 Leasinvest.be
Slide 56: Strategic vision: organic (re)developments
Strategic vision 02 Development strategy – Organic (re)developments Royal 20 CBD (LU) Treesquare (BE) Reconstruction by 2015 Reconstruction by 2018 Let to China Merchant’s bank Building of ~ 6,500 m² Sold with capital gain of > € 20 m on investment Let to high end occupants 1H 2019 | Leasinvest 56 L
Slide 57: Strategic vision: commercial strategy
Strategic vision 03 Commercial strategy – Maximizing lease duration & occupancy rates 2/ De Mot 1/ Tour & Taxis 3/ Mercator 1H 2019 | Leasinvest 57 Leasinvest.be
Slide 58: Structure & Corporate governance
Structure & Corporate governance
Slide 59: Corporate Structure
Ackermans & van Haaren AXA Belgium 30% 27% 100% Leasinvest Real Estate SCA/Comm. VA Leasinvest Real Estate Management SA/NV = BE REIT/SIR/GVV = asset management for LRE & LIL = buildings in Belgium Belgium Grand-duchy of Luxembourg Austria Corporate Leasinvest Services SA/NV 100% 100% Leasinvest Imm
Slide 60: Main assets
Treesquare (BE) Main assets
Slide 61: Main assets in Luxembourg
RETAIL Batiself & Siemes Diekirch Acquisition: 2008 RETAIL Shopping center Knauf Pommerloch North of Luxembourg Acquisition: 2013 OFFICE OFFICES & WAREHOUSE Montimmo CFM Avenue Monterey, CBD 3,600 m² Offices en 10,000 m² Warehouse Acquisition: 2008 RETAIL Strassen Main assets 2 phase renovation 2017
Slide 62: Main assets in Belgium
OFFICE OFFICE Motstraat The Crescent Motstraat 30, Anderlecht Mechelen Lenniksebaan 451, Acquisition: 2002 Anderlecht Acquisition: 2004 OFFICE / RETAIL Brixton Business Park Brixtonlaan 1-30, Zaventem Acquisition: 1999 OFFICE Montoyer Riverside Business Park Internationalelaan 55, Anderlecht Acquisi
Slide 63: Main assets in Austria
RETAIL Frun© Park Asten Linz - 200 KM from Vienna Acquisition: 2016 Main assets in Austria RETAIL Hornbach Baumarkt (Stadlau 22nd district Vienna) Acquisition: 2017 1H 2019 | Leasinvest RETAIL 63 Leasinvest.be Gewerbepark Stadlau (Stadlau 22nd district Vienna) Acquisition: 2017
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