Castellana Properties Socimi Sa · BME:YCPS

Castellana Properties Socimi Sa — Investor Presentation (November 2020)

45 slides from Castellana Properties Socimi Sa's investor presentation, November 2020

  1. Slide 1: Corporate Presentation

    CASTELLANA PROPERTIES OVERVIEW / RESULTS PRESENTATION CORPORATE PRESENTATION NOV 2020

  2. Slide 2: Contents

    CORPORATE PRESENTATION CONTENTS  COMPANY OVERVIEW  STRATEGY  OUR RESPONSE TO COVID-19  COMPANY STANCE  VALUE CREATION  ESG  ANNEX I – COVID - 19  ANNEX II – PORTFOLIO IN DETAIL  ANNEX III – TOP 10 ASSETS BY GAV

  3. 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

  4. Slide 4: Timeline

    COMPANY OVERVIEW TIMELINE DEC 2017 NOV 2018 MAY 2019 AUG 2019 MAY 2015 Acquisition of Integration 4 SCs, owned by Acquisition of the units Acquisition of Puerta Acquisition of El Fresno Alameda SC & Pinatar Morzal Property: El Faro, Bahía Sur, owned by El Corte Inglés Europa SC €56.6m(1) and Bollull

  5. Slide 5: Main KPIs and Shareholding Structure

    COMPANY OVERVIEW MAIN KPIS AND SHAREHOLDING STRUCTURE 18 373,478 sqm 98.50 % 13.7 years 90.48 % 82 % OPERATIONAL ASSETS GLA OCCUPANCY WAULT RENT COVID-19 COLLECTION NEGOTIATIONS CLOSED €994m (1.0 %) (3.4 %) €519m 6.02 €/share GAV H1FY21 ACCUMULATED EPRA NAV EPRA NAV CORPORATE COVID-19 VALUE COVID-19

  6. Slide 6: Our Portfolio

    COMPANY OVERVIEW OUR PORTFOLIO WELL DIVERSIFIED ACROSS SPAIN 9 3% 5 9% 1 El Faro 10 Marismas de Polvorín 2 Bahía Sur 11 Alcobendas Building 11 8 3 Los Arcos 12 La Heredad 7% 17 16 20% 4 Granaita 13 La Serena 12 10% 5 Vallsur 14 Pinatar Park 1 13 6 Habaneras 15 Motril Retail Park 6 7 Puerta Europa 16

  7. Slide 7: Our Values

    COMPANY OVERVIEW OUR VALUES PASSION FOR MAKE A DIFFERENCE ACT WITH INTEGRITY CUSTOMER- WHAT WE DO AS A TEAM & TRANSPARENCY CENTRIC APPROACH COMMITTED TO SUSTAINABLE PROACTIVE & VALUE OUR OUR CLIENTS GROWTH COMMITTED TO RELATIONSHIPS INNOVATION 7

  8. Slide 8: Why Retail?

    STRATEGY WHY RETAIL? RETAIL AND DIRECT REAL ESTATE OUTPERFORMING OTHER ASSET CLASSES. THE WORLD OF RETAIL IS CHANGING, BUT SHOPPING THEY ARE TWICE AS PROFITABLE AS OTHER CATEGORIES OVER AN 18-YEAR PERIOD CENTRES WILL CONTINUE TO PLAY A CENTRAL ROLE IN URBAN AND SUBURBAN COMMUNITIES COMPARATIVE GLOBA

  9. Slide 9: Why Castellana Properties?

    STRATEGY WHY CASTELLANA PROPERTIES? TAKING A STEP FORWARD IN RETAIL COMMITTED AT THE BUILDING ROBUST AND HIGH QUALITY ACTIVE INCOME SPECIALISTS IN RETAIL TO DELIVERING THE CUTTING-EDGE HEALTHY GROWTH PORTFOLIO MANAGEMENT FOCUS HIGHEST STANDARDS OF NEW TRENDS  Specialists in the  Driving up returns

  10. Slide 10: Why Spain Is Different?

    STRATEGY E-COMMERCE TOURISM WHY SPAIN IS DIFFERENT?  Spain was the world’s second most visited country in 2019 and is expected to continue this trend post pandemic  Last year, Spain welcomed a record number of foreign tourist visitors for the seventh consecutive year  The country’s total tourist

  11. Slide 11: E-commerce: Omnichannel

    STRATEGY E-COMMERCE OMNICHANNEL ONLINE SHOPPING COMPLIMENTS PHYSICAL RETAIL TO PROVIDE 42% of the products bought in physical stores are influenced by prior online browsing SHOPPERS WITH A SEAMLESS EXPERIENCE ACROSS ALL RETAIL TOUCHPOINTS. BOTH PHYSICAL AND DIGITAL RETAILERS ARE 12% of products purc

  12. Slide 12: E-commerce: Lockdown and the Future

    E-COMMERCE STRATEGY WHAT HAPPENED DURING LOCKDOWN? WHAT DOES THE FUTURE HOLD?  The number of digital consumers grew by 1% over the last year  A return to pre-COVID shopping habits. 75% of consumers say they will return to the same level of online shopping as before lockdown, with some even saying

  13. Slide 13: Action Plan

    OUR RESPONSE TO COVID-19 ACTION PLAN ACTION PLAN HIGHLIGHTS OVER PAST 6 MONTHS – APRIL to SEPTEMBER 2020 STRONG TENANT BUSINESS IS PARTNERING WITH VALUATION & INDUSTRY ROBUST DEBT PROVIDERS ASSUMPTIONS RELATIONSHIPS  Extensive scenario modelling  100% Temporary rental discounts for  Extensive com

  14. Slide 14: Strengthening the Retail Portfolio Metrics in the Face of the Pandemic

    OUR RESPONSE TO COVID-19 STRENGTHENING THE RETAIL PORTFOLIO METRICS IN THE FACE OF THE PANDEMIC AGREEMENTS ON TRACK WITH 90% OF ADDENDUMS … LEADING TO STRENGTHENED TENANT RELATIONSHIPS AND CLOSED OR UNDER ADVANCED NEGOTIATIONS... IMPROVEMENT OF ALL RETAIL KEY RATIOS AND LEASE MATURITIES SINCE MARCH

  15. Slide 15: 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 3 578,345 m2(1) 222,611 m2 600.000 m² 500.000 m² 356,734 m2(2) 400.000 m² 300.000 m² 200.000 m² 100.000 m² - m² LAR ESPAÑA CARMILA UNIBAIL GGC MERLIN

  16. 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 RETAIL PORTFOLIO: FAST FACTS 3% TOP 10 TENANT GROUPS BY RENT 30 SEPTEMBER 2020 29% 16 INDITEX 12.5% GAV ASSETS MEDIA MARKT 4.4%

  17. Slide 17: GAV Summary at 31 March 2020

    COMPANY STANCE / CORPORATE KPI´s GAV SUMMARY AT 31 MARCH 2020 ACCRETIVE ACQUISITIONS AND REVALUATION TOOK PORTFOLIO VALUE OVER THE €1BN MARK 31ST DECEMBER 31ST DECEMBER 31ST MARCH 31ST MARCH 31ST MARCH 2016 2017 2018 2019 2020 INVESTMENT VOLUME €916m €1,003m(1) €304m €308m €23m SPECIALIST IN RETAIL

  18. Slide 18: Active Asset Management

    COMPANY STANCE / CORPORATE KPI´s ACTIVE ASSET MANAGEMENT HIGHLY-QUALIFIED, DEDICATED INTERNAL TEAM WITH EXPERT RETAIL KNOWLEDGE INTEGRATED FUNCTIONS & OPERATIVE VALUE ADD CORPORATE VALUE ADD 1 Highly-qualified ASSET MANAGEMENT staff dedicated full time to  Lease management via active negotiation to

  19. 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 800000,0 m² 100,00% 99,30% 99,50% 700000,0 m² 98,94% OCCUPANCY ALMOST FULLY LET Occupan

  20. Slide 20: Shopping Centre Footfall & Sales

    COMPANY STANCE / BUSINESS KPI´s SHOPPING CENTRE FOOTFALL & SALES CASTELLANA PORTFOLIO CONTINUES TO GROW AND OUTPERFORM THE UNDERLYING STRENGTH OF THE PORTFOLIO ALLOWS IT TO IN 2019 WITHSTAND THIS UNPRECEDENTED PERIOD YTD FOOTFALL & SALES (1) MONTHLY FOOTFALL& SALES (1) JAN – DEC 2019 JAN-OCT 2020 (2

  21. Slide 21: Financial Debt Position

    COMPANY STANCE / FINANCE KPI´s FINANCIAL DEBT POSITION € million 30/09/2020 31/03/2020 30/09/2019 31/03/2019 Gross Asset Value (GAV) 993.84 1,003.49 1,028.40 916.47 (1) Gross Debt 511.33 493.83 493.83 450.35 Cash 42.10 49.06 52.80 29.39 Net Debt 472.67 448.35 441.03 420.96 METRICS BANK Gross LTV(2)

  22. Slide 22: 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 the industry, from retail and offices to Senior financial expert with more than 19 years of exp

  23. Slide 23: GRI FY2020 Breakdown

    VALUE CREATION GRI FY2020 BREAKDOWN Like-for-Like Growth of 2.78% Potential Portfolio GRI Annualised over €66m SHOPPING CENTRES €45.5m 68.5% RETAIL PARKS +2.75% LfL GROWTH(2) RETAIL PARKS €18.9m 28.4% OFFICES +3.00% +2.78% OFFICES €2.0m 3.1% €m 66.4 3.2 55.9 17.9 34.3 0.5 GRI Like-for-Like Annualise

  24. Slide 24: iCAST Programme

    VALUE CREATION iCAST PROGRAMME CREATING A CASTELLANA 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 a

  25. Slide 25: Case Study: Granaita Retail Park Reconfiguration

    VALUE CREATION CASE STUDY: GRANAITA RETAIL PARK RECONFIGURATION GRANAITA, THE LARGEST RETAIL AND LEISURE PARK IN GRANADA, REOPENED ITS DOORS AT THE END OF MARCH 2019. BEFORE The new park is the result of merging the former Kinépolis retail park and Alameda SC. Now, Granaita offers a wide range of fo

  26. Slide 26: Case Study: Puerta Europa Acquisition 1/2

    VALUE CREATION CASE STUDY: PUERTA EUROPA ACQUISITION 1 / 2 ASSET SNAPSHOT  In July 2019, Castellana acquired Puerta Europa, a shopping centre in Algeciras.  Puerta Europa was bought from Värde Partners and has provided significant value- add to Castellana.  A dominant centre in Algeciras that off

  27. Slide 27: Case Study: Puerta Europa Acquisition 2/2

    VALUE CREATION CASE STUDY: PUERTA EUROPA ACQUISITION 2 / 2 ASSET STRATEGY DIVERSIFIED TENANT MIX  Strategically increasing ERV’s of existing tenants to take advantage of low effort rates. FASHION  Improve tenant mix by replacing underperforming tenants with stronger brands at higher ERV’s.  Impro

  28. Slide 28: Repositioning Project - Bahia Sur 1/2

    VALUE CREATION REPOSITIONING PROJECT - BAHIA SUR 1 / 2 CURRENT LAY OUT FUTURE LAY OUT (1) ACQUISITION OF EL CORTE INGLES UNIT TO REINFORCE THE DOMINANCE OF THE CENTRE, BRINGING NEW AND EXCITING TENANTS TO THE CADIZ REGION Unit signed Unit committed. Advanced negotiations Unit under negotiation RETUR

  29. Slide 29: Repositioning Project - Bahia Sur 2/2

    VALUE CREATION REPOSITIONING PROJECT - BAHIA SUR 2 / 2 LEFTIES ZARA  6 new stores have opened at Bahia Sur SEP SEP SC due to the refurbishment project. 03 25  The new Zara flagship that opened in Bahia Sur in September 2020 comprises more than 3,700 sqm.  It has an omnichannel focus with dedicate

  30. Slide 30: Repositioning Project - Los Arcos 1/2

    VALUE CREATION REPOSITIONING PROJECT - LOS ARCOS 1 / 2 CURRENT LAY OUT FUTURE LAY OUT (1) ACQUISITION OF HIPERCOR UNIT ENABLING IMPROVED TENANT MIX ALONG WITH STREET LEVEL RECONFIGURATION Unit signed Unit committed. Advanced negotiations Unit under negotiation RETURN METRICS Acquisition Cost €17.3m

  31. Slide 31: Repositioning Project - Los Arcos 2/2

    VALUE CREATION REPOSITIONING PROJECT - LOS ARCOS 2 / 2 MERCADONA JUL 10 LA CALETA EXTENSIONMANIA  There have been 8 new openings SEP SEP at Los Arcos SC due to the 28 24 refurbishment project, starting in mid-July with the opening of Mercadona, the outright leader in groceries. Etam, Movistar, Deci

  32. Slide 32: Repositioning Project - El Faro 1/2

    VALUE CREATION REPOSITIONING PROJECT – EL FARO 1 / 2 FUTURE LAY OUT (1) UNLOCKING VALUE BY TRANSFORMING FORMER DIY BOX INTO ATTRACTIVE LEISURE AND F&B PLAZA Unit signed Unit committed. Advanced negotiations Unit under negotiation RETURN METRICS Capex Budget €4.5m Additional NOI created €0.25k 16 7,3

  33. Slide 33: Repositioning Project - El Faro 2/2

    VALUE CREATION REPOSITIONING PROJECT - EL FARO 2 / 2 BURGER KING YELMO CINES FOSTER HOLLYWOOD OCT OPENING DATE FIRST OPENING DATE FIRST 02 WEEK DECEMBER WEEK DECEMBER This Yelmo Premium cinema will open in December and will be the only premium cinema in the region. There will also be new leisure act

  34. Slide 34: Environmental and Social

    ESG ENVIROMENTAL AND SOCIAL CASTELLANA PROPERTIES IS CREATING AN AMBITIOUS ESG (ENVIRONMENT, SOCIAL AND GOVERNANCE) STRATEGY AND ASPIRES TO BECOME A LEADING LIGHT IN THE SECTOR, CREATING STRONGER RELATIONSHIPS WITH CUSTOMERS AND COMMUNITIES OUR ESG APPROACH ENVIRONMENTAL SOCIAL GOVERNANCE  We suppo

  35. Slide 35: Governance

    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 DIRECTOR NON-EXECUTIVE INDEPENDENT DIRECTOR Nigel George Payne Adam Lee Morze NON-EXECUTIVE D

  36. Slide 36: Annexes

    CASTELLANA PROPERTIES OVERVIEW / RESULTS PRESENTATION ANNEXES

  37. Slide 37: 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, G

  38. Slide 38: Reopening Strategy 1/3

    COVID - 19 REOPENING STRATEGY 1 / 3 IMPLEMENTING GOVERNMENT RECOMMENDED MEASURES AND ENSURING THE SAFEST SPACES POSSIBLE FOR OUR CUSTOMERS…  Cleaning and hygiene  Adherance to social standards are fully adhered to distancing while queuing, in all common areas one-way system…  Specific signage and

  39. Slide 39: Reopening Strategy 2/3

    COVID - 19 REOPENING STRATEGY 2 / 3 …OVER THE PAST FEW MONTHS WE HAVE CREATED EXCITING LEISURE ACTIVITIES BAHÍA SUR LOS ARCOS GRANAITA Second Edition of Bahía En Vivo! Festival at Bahía Sur SC. An extensive PR campaign was launched at Los Arcos New outdoor space at Granaita retail park to extend the

  40. Slide 40: Reopening Strategy 3/3

    COVID - 19 REOPENING STRATEGY 3 / 3 AT CASTELLANA PROPERTIES, WE SUPPORT OUR TENANTS TO ENSURE A CLOSE RELATIONSHIP WITH THEM, FINDING SOLUTIONS THAT BENEFIT BOTH PARTIES IN THE LONG-TERM SUPPORT PROVIDED TO OUR TENANTS “Castellana Properties is, without a doubt, a very good working partner and we e

  41. Slide 41: Portfolio Detail at September 2020

    ANNEX I PORTFOLIO DETAIL AT 30 SEPTEMBER 2020 Nº PROPERTY DESCRIPTION ACQUISITION DATE GLA (m²) PARKING SPACES MARKET VALUE OCCUPANCY (%) 1 El Faro 31/07/2018 43,593 2,840 158,990 97.46% 2 Bahía Sur 31/07/2018 36,432 2,818 137,910 98.54% 3 Los Arcos 31/07/2018 29,696 1,800 137,200 93.49% 4 Vallsur 3

  42. Slide 42: Top Assets by GAV at September 2020 1/2

    ANNEX II TOP 10 ASSETS BY GAV AT 30 SEPTEMBER 2020 1/2 EL FARO BAHÍA SUR LOS ARCOS GRANAITA (I) VALLSUR GAV €159.0m €137.9m €137.2m €109.1m €90.7m Province Badajoz Cádiz Seville Granada Valladolid Catchment Area (Inhabitants) 517,491 674,250 1,499,884 628,002 477,746 Gross Lettable Area 43 593m² 36

  43. Slide 43: Top Assets by GAV at September 2020 2/2

    ANNEX II TOP 10 ASSETS BY GAV AT 30 SEPTEMBER 2020 2/2 HABANERAS PUERTA EUROPA PARQUE OESTE (I) PARQUE PRINCIPADO MARISMAS DEL POLVORÍN GAV €84.8m €64.7m €49.5m €33.5m €27.0m Province Alicante Cádiz Madrid Oviedo Huelva Catchment Area (Inhabitants) 531,670 311,110 5,856,325 866,511 318,213 Gross Let

  44. Slide 44: 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

  45. Slide 45: Rubén Darío, 3 28010 Madrid www.castellanaproperties.es

    Rubén Darío, 3 28010 Madrid (+34) 91 426 86 86 www.castellanaproperties.es

Castellana Properties SOCIMI — Investor Presentation (November 2020) on 6ix