Prodea Real Estate Investment Co. Sa · ATHEX:PRODEA
Prodea Real Estate Investment Co. Sa — Prodea Investments — EPRA Conference 2023
31 slides from Prodea Real Estate Investment Co. Sa's conference presentation, Mar 31, 2023
Slide 1: Prodea Investments Company Presentation
PRODEA INVESTMENTS Company Presentation as at 31 March 2023
Slide 2: Agenda
AGENDA • Prodea Overview • Greek Market Overview • Secured & New Projects • ESG • Capital Structure & Financials • Appendix 2
Slide 3: Prodea Overview
PRODEA OVERVIEW The leading company in Real Estate investments in the Hellenic market PRODEA has a well-balanced and diversified asset exposure, expanding into the best performing sectors of Greek Real Estate, including green office, hotels, logistics and residential. PRODEA Investments' real estate
Slide 4: Portfolio Metrics
PORTFOLIO METRICS High-quality diversified Largest REIC in Greece(1) portfolio €2.6bn 94.2% GAV(2) Occupancy €2.9bn 12.3 (4) / 8.2 (5) AUM (7) WAULT (years) 382 €172.0m Number of properties(2) Annualized gross rent 1.5m 6.9% GLA (sqm) Gross rental yield(3) Strong financials €113.6m €1.5bn Adj. EBITD
Slide 5: Strategic Goals
STRATEGIC GOALS Benefit from the positive momentum in the Greek market; with an aim of ensuring an increased recurring income 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 gr
Slide 6: Investment Approach
INVESTMENT APPROACH PRODEA has a strong track record achieved with a well-defined strategy Disciplined acquisition Active asset management Optimal financing ▪ Acquisitions driven by fundamentals and a ▪ Maintain revenue visibility - high occupancy ▪ Target c.40-45% Gross LTV, c.35-40% Net LTV long-t
Slide 7: 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. The current political stability, combined with the robust economic recovery and
Slide 8: 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 9: Well Diversified Portfolio
WELL DIVERSIFIED PORTFOLIO Hospitality 10% Bank branches 16% Retail / Big AUM(7): boxes €2.9bn 18% Offices 47% Logistics 4% Other 5% Hellenic Market: 328 properties in Greece and 24 properties in Cyprus with value of €2,341m. Italy(12): 26 properties in 16 cities with value of €417m. Bulgaria & Roma
Slide 10: Investment Footprint
INVESTMENT FOOTPRINT 51% 17% 19% 13% Offices Bank branches Retail Logistics / Hospitality Total / Other(8) No. of properties(9) 72 164 105 41 382 GLA(10) (000 sqm) 681 153 363 296 1,494 GAV 2,616 Appraised value 1,318 (in €m)(10),(2) 444 503 352 93% 98% 96% 94% 95% Occupancy : WAULT incl. break opti
Slide 11: Investment Footprint
INVESTMENT FOOTPRINT Hellenic market: 328 properties in Greece and 24 properties in Cyprus Italy(12): 26 assets in 16 cities AUM Value: €2,341m | GLA: 1,213k sqm | Occupancy: 97.4% | Key cities(13): 81.7% AUM Value: €417m | GLA: 201k sqm | Occ.: 75.2% | Key cities(13): 57.1% Milan Breakdown 8 7 Rest
Slide 12: Strong Tenants
STRONG TENANTS Favorable lease terms minimizing cash flow leakage 8.2/ 12.3 years WAULT including/excluding break options c.86% of annualized rents not subject to break options c.93% of the annualized rent is subject to uplift linked to inflation rate or otherwise indexed TTEC 12
Slide 13: Mediterranean Hospitality Venture
MEDITERRANEAN HOSPITALITY VENTURE • Focus on large high-end resort hospitality investments with development potential • PRODEA holds a 25% stake in MHV • MHV’s main hospitality markets are Greece and Cyprus, which both benefit from a combination of a strong tourism industry, world-class transport in
Slide 14: Green Certified Buildings (Indicative Projects)
GREEN CERTIFIED BUILDINGS (INDICATIVE PROJECTS (1)) Total GAV of certified and under certification Green buildings (upon completion of developments): €617m c.41 (2) % of Offices will be Green certified (in terms of GAV) ✓ Asset name: The Wave, Syggrou ✓ Asset name: Karela Office Park ✓ Asset name: e
Slide 15: Secured & New Projects
| Timer n° oe SECURED & NEW PROJECTS ° PRODEIA
Slide 16: Secured & New Projects
SECURED & NEW PROJECTS c.€870m of Projects(1) | More than 540,000sqm | 55% Secured | 70% Green Certified Mixed Use Other (Office & Retail) 3% 17% Conventional In Negotiations Offices 31% 23% 44,7% Segment Energy Progress Green Certified Secured Logistics 69% 54,9% 32% Hotels & Residential New 25% Ap
Slide 17: Rent Evolution
RENT EVOLUTION Potential Annualized Rent Evolution Generated from Secured Projects 30,0 24,4 25,0 21,7 20,0 15,0 11,5 11,5 21,9 19,2 10,0 6,3 9,0 9,0 5,0 1,8 3,8 €'mn 1,8 2,5 2,5 2,5 2,5 2,5 - - H1 2023 H2 2023 H1 2024 H2 2024 H1 2025 H2 2026 (b) Management Estimates for Annualised Rents Generated f
Slide 18: Environmental, Social, Governance
ENVIRONMENTAL, SOCIAL, GOVERNANCE 18
Slide 19: Prodea's Strategic Vision and Goals
PRODEA’S STRATEGIC VISION AND GOALS PRODEA aims to create long term value for shareholders, employees, clients, and other stakeholders, by allocating capital to property investments in a sustainable and responsible way Sustainable Environmental investments responsibility PRODEA's strategic pillars H
Slide 20: Prodea's Sustainability Highlights
PRODEA’S SUSTAINABILITY HIGHLIGHTS EPRA Sustainability Performance Report, 2023 Inaugural Sustainability Report, 2023 Green Bond Investors Report, 2023 Environment Social Corporate Governance • 41% of offices completed or on-boarded, are • Implementation of policies that contribute to certified or u
Slide 21: Capital Structure & Financials
CAPITAL STRUCTURE & FINANCIALS 21
Slide 22: Capital Structure
CAPITAL STRUCTURE Debt Split by Category Debt Split by Rate Type Fixed 22% Public Bonds 22% Key Figures as of 31 March 2023 Floating 37% (in €m unless otherwise stated) Gross Debt 1,382(1) Syndicated Cash & Restricted Cash 189 Bonds 78% Hedged GAV 2,616 41% Gross LTV (%) 52.8% 4.7(2) years weighted
Slide 23: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE IRR: c.11%(1) Multiple: c.2.2x Financial Performance (in €m) Total shareholders’ return per share IRR: c.11%(1) 155.7 8.72 149.7 Multiple: c.2.2x 8.64 8.06 0,29 0,29 7.30 0,29 113.6 6.90 108.5 6.09 2,58 2,58 102.8(2) 105.4(2) 5.63 2,30 1,34 1,95 5.10 5.31 4.93 1,05 0,63
Slide 24: Appendix
APPENDIX 1. Consolidated Statement of Financial Position 2. Consolidated Income Statement 3. EBITDA & FFO Calculations 4. NAV break-down 5. Notes 24
Slide 25: Consolidated Statement of Financial Position – IFRS
CONSOLIDATED STATEMENT OF FINANCIAL POSITION – IFRS Amounts in € ’000s Dec-2021 Dec-2022 Mar-2023 Assets Non-current assets Investment property 2,279,958 2,491,284 2,539,353 Equity method investments and investments in joint ventures 104,972 157,336 150,923 Property and equipment 10,632 10,171 10,09
Slide 26: Consolidated Income Statement – IFRS
CONSOLIDATED INCOME STATEMENT – IFRS Amounts in € ’000s Dec-2021 Dec-2022 LTM Mar-2023 Continuing Operations Revenue 134,204 186,923 192,127 Net gain / (loss) from fair value adjustment of investment property 96,723 59,669 65,900 Gain from disposal of investment property 197 1,367 1,237 Direct prope
Slide 27: EBITDA and FFO Calculations
EBITDA AND FFO CALCULATIONS EBITDA Amounts in € ’000s Dec-2021 Dec-2022 LTM Mar-2023 Profit for the period from continuing operations 175,081 123,771 122,373 Plus: Depreciation and Amortization 556 549 545 Plus: Net Finance costs 37,776 42,754 49,849 Plus: Taxes 3,222 861 2,303 EBITDA 216,635 167,93
Slide 28: NAV Break-down
NAV BREAK-DOWN Amounts in € ’000s Dec-2021 Dec-2022 Mar-2023 Shareholders’ Equity 1,396,080 1,465,735 1,484,482 Plus: IFRS Adjustment (1) 251 9,500 9,241 NAV 1,396,311 1,475,235 1,493,723 (1) Difference between the NBV and the market value (as determined by the independent statutory valuers) of the
Slide 29: Notes
NOTES Source: Company information for 31 March 2023 & Financial Statements for financial year 2022. Note: Unless stated otherwise, all data refers to the period ended 31 March 2023. (1) Based on GAV. (2) GAV includes Investment properties plus Company’s headquarters (€10.1m) and real estate inventor
Slide 30: 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 31: 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