Slide 1: Half-Year Results 2016
Schiphol, 21 July 2016 HALF-YEAR RESULTS 2016
Slide 2: Financial performance & Operations
Financial performance & Operations OPERATIONS H1 2016 H1 2015 Direct result per share €1.77 €1.62 LFL growth sh. centre portfolio Indirect result per share €(1.68) €0.64 100bps > indexation EPRA NAV per share €50.53 €53.01 60bps > indexation Interim dividend per share €1.54 €1.50 LTV 39.5% 30.5% Occ
Slide 3: Strong operational performance despite retail market hit by bankruptcies
Strong operational performance despite retail market hit by bankruptcies FAST RECOVERING AND FOCUS ON OPERATIONS OUTLOOK IMPROVING OCCUPANCY PAYING OFF CONFIRMED RATE • Positive L-f-L rental • On track to reach targets • EPS growth 6%-9% for growth in all countries set for acquired 2016 except Finla
Slide 4: Portfolio, Funding, Dividend
PORTFOLIO FUNDING DIVIDEND • €50m acquisition of • Two loans refinanced for • Quarterly interim HEMA store and to be €160m; new €70m dividend of €0.77 redeveloped V&D revolving credit facility department store leased for WH Belgium • Final quarter dividend to Hudson’s Bay, in announced along with Ti
Slide 5: Focus on operations, capital recycling
2013 2016 - 2015 FOCUS ON OPERATIONS CAPITAL RECYCLING Occupancy, occupancy, occupancy o Review strategic options Itis Strengthen organisation o Acquisitions dependent on disposals Optimise portfolio quality Maintain solid balance sheet 5 5
Slide 6: Operations
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Slide 7: Stable renewals and relettings, rotations generally at lower levels
Stable renewals and relettings, rotations generally at lower levels Belgium Finland France Netherlands Total # contracts 20 61 27 320 428 Relettings ≈* - + + ≈ Renewals ≈ - + ≈ ≈ Rotations + - - - ≈ 0% +/- 0-10% ++/-- >10% * Excludes MGR/SBR • Bel: leasing market in general at ‘below-average speed’;
Slide 8: Average rents from re-lettings and renewals
BEL FIN FRA NETH • € 165 per sqm • € 496 per sqm • € 157*per sqm • € 250 per sqm average rent average rent average rent average rent Average rents from re-lettings and renewals combined * Includes Primark and Kinepolis leases (large area at relatively low rent per sqm) 8
Slide 9: Dutch bankruptcies from 2012 recovered within one year
Dutch bankruptcies from 2012 recovered within one year YEAR 2011 2012 2013 2014 2015* 2016** OCCUPANCY 96.0% 96.5% 97.1% 97.0% 98.0% 95.3% 1/1 BANKRUPTIES (0.2%) (3.2%) (3.5%) (2.0%) (2.8%) (4.7%) LEASING +0.7% +3.8% +3.4% +3.0% +2.7% 4.6% OCCUPANCY 96.5% 97.1% 97.0% 98.0% 97.9% 95.2%*** 31/12 • Occ
Slide 10: Target occupancy and like-for-like rental growth
TARGET 2013 - 2015 OCCUPANCY • 2015: stable at 91% Delivered • 2016: from 91% to 93% Delivered mid-year 2016 • 2017: from 93% to 95% o On track TARGET L-f-L rental growth • 2016: 1% > index On target per mid-year 2016 10 10
Slide 11: Scotch & Soda at Etten-Leur; Didi at Eggert
Scotch & Soda at Etten-Leur Didi at Eggert, Purmerend Jumbo pick-up point at Sterrenburg, Dordrecht 11
Slide 12: Only at Rivetoile, Strasbourg
Only at Rivetoile, Strasbourg Women’ secret at Meriadeck, Bordeaux Leroy Merlin’s first French city centre outlet at Rivetoile, Strasbourg Amazon lockers at Meriadeck, Bordeaux 12
Slide 13: What For at Docks 76, Rouen
What For at Docks 76, Rouen HEMA at Rivetoile, Strasbourg Del Arte at Docks Vauban, Le Havre 13
Slide 14: Kiosks and promotions share of total rent
% of total rent 3% 1.10% 1% 30% 40% 0.80% 0.60% 27% 2013 2014 2015 H1 2016 Kiosks Adv Promotions Other • Regular concept-renewal of kiosks and promotions strengthens convenience offer, increases attractiveness of centre and drives footfall • Online booking tool retailers introduced in 2016 for Dutch
Slide 15: Occupancy by country
Jun 2016 Dec 2015 Jun 2015 Belgium 95.1% 94.9% 94.9% Finland 95.3% 92.5% 94.2% France 93.2% 91.1% 91.1% Netherlands 95.2% 95.3% 97.8% Shopping centres 94.8% 93.8% 94.3% Belgian offices 91.9% 93.4% 90.9% Total 94.6% 93.8% 92.5% • Bel: +0.2%; Genk Shopping 1 +3.6% due to New Yorker and Tournai Retail
Slide 16: Footfall versus market
• Belgium: moderately growing, 3.2% above -2.7% Belgium 0.5% market-average • Finland: footfall still increasing but at more moderate pace in weaker macro climate 0.0% Finland 1.2% • France: slightly below market but expected to improve going forward following recent strong leasing activity France 0
Slide 17: Like-for-like rental growth by country
8.6% -5.4% 1.0% 0.1% 1.0% 7.4% 0.6% 0.0% 0.5% 1.2% 1.0% Belgium Finland France 0.0% Netherlands -0.4% Total 0.4% -5.4% indexation Above indexation 17
Slide 18: Portfolio
PORTFOLIO 18
Slide 19: Acquisition of Hudson's Bay department store and HEMA
Artist’s impression • Acquisition of to be redeveloped Hudson’s Bay department store (12,000 sqm GLA) and HEMA store • Part of high quality inner city redevelopment creating attractive public- retail- and residential space • Connecting new Primark store in Tilburg with Pieter Vreedeplein and Emma Pa
Slide 20: Strengthening Emma Passage and Pieter Vreedeplein
Artist’s impression • Unique opportunity to strengthen position of Emma Passage and Pieter Vreedeplein, acquired in Aug 2015 • Expected to lead to increasing footfall, higher occupancy and ERVs • Ca. €50m net investment; 5-6% blended NIY • 70-yr lease with Hudson’s Bay Company • 11-yr lease with HEM
Slide 21: Tilburg Acquisition
TILBURG ACQUISITION
Slide 22: Dutch modernisation program progressing
Total investment Capex so far Capex spent NIY fully let Pre-let (%) Completion 2016 Dutch redevelopment program 72.0 39.4 3.8 5.8% 2018 Dutch refurbishment capex 27.0 17.1 1.5 2018 Les Bastions, Tournai 65.8 10.4 - 6.3% - Q1 2018 Docks Vauban, Le Havre 17.1 1.0 0.8 9.0% 71% Q4 2017 Total 181.9 67.9
Slide 23: Tournai Retail Park
• 10,000 sqm retail park, €17.8m invested @ 6.5% stabilised NIY • Opening Feb 2016, visitors and sales above budget • Next to shopping centre Les Bastions, sealing its position as convenience shopping destination in the region 23
Slide 24: Etten-Leur, Eggert and Vier Meren projects
New Kids plaza at Etten-Leur New side-entrance at Eggert, Purmerend Solar panels at Vier Meren, Hoofddorp 24
Slide 25: Financials
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Slide 26: Net rental income bridge H1 2015 to H1 2016
(IN €M) 22.0 (7.0) 0.3 0.8 102.4 86.3 H1 2015 Acquisitions Disposals From L-f-L rental growth H1 2016 development • Acquisitions: nine Dutch shopping centres for € 770m in August 2015 • Disposals: French office portfolio for € 401m in Q4 2015 • Development: Tournai Retail Park (€ 17.8m) in February
Slide 27: Direct result per share bridge
(IN € PER SHARE) 0.55 (0.17) (0.02) (0.01) 0.01 0.02 (0.21) (0.02) 1.77 1.62 H1 2015 Acquisitions Disposals From Standing General Interest Share issue Other H1 2016 development portfolio costs costs 2015 • Main impact from Dutch acquisition and sale of French offices in 2015 • General costs increase
Slide 28: Indirect result per share
(IN € PER SHARE) Fair value adjustments Valuation result Other income and expenses Hedge result derivatives Taxes/other Total indirect result -1.51 0.03 -1.68 -0.34 -0.07 0.21 • Fair value adjustment derivatives: €10.1m fair value change option component and €-1.4m depreciation option premium of CB
Slide 29: IFRS NAV and EPRA NNNAV
(IN € PER SHARE) 52.10 1.77 -1.68 -1.51 -0.13 -0.02 50.53 Dec 2015 Final dividend 2015 Direct result Indirect result Hedge reserve Other Jun 2016 IFRS NAV* EPRA NNNAV* Jun 2016: € 48.48 Jun 2016: € 46.93 Dec 2015: € 50.05 Dec 2015: € 50.38 29
Slide 30: Portfolio result and value by country
Result Value EPRA NIY H1 2016 Jun 2016 Jun 2016 (In €m) (In €m) (In %) Belgium 3.3 646 5.5 Finland -39.5 580 4.7 France 6.2 866 4.9 Netherlands -26.5 1,508 5.5 Shopping centres -56.5 3,600 5.2 Belgium offices -4.4 129 7.2 Total portfolio -60.9 3,729 5.3 • Finland: impacted by lower market rents comp
Slide 31: Valuation result on total portfolio
Valuation result Total Belgium -0.1% 0.6% 0.5% Finland -6.4% 0.0% -6.4% France 0.6% 0.1% 0.7% Netherlands -1.1% -0.5% -1.6%* Shopping centres -1.4% -0.1% -1.5% Belgium -3.3% 0.0% -3.3% Total portfolio -1.5% -0.1% -1.6% Yield movement Market rent & other • -1.6% valuation result on total portfolio, m
Slide 32: Increasing maturity and decreasing cost of debt
AVERAGE FIXED VS COST LTV FLOATING • A further increasing maturity and decreasing cost OF DEBT DEBT of debt was realised in H1 2016 due to: ≤ 60% 39.5% 86% vs 14% • A USD 150m maturing USPP, originating from 2011, 82% vs 18% 2.2% was repaid in March 2.0% 37.5% • A € 100m facility was refinanced by a
Slide 33: Debt level and average maturity
STABLE DEBT LEVEL, INCREASED AVERAGE MATURITY INCREASED SHARE OF BANK LOANS FROM 5.5 TO 5.6 YEARS (IN EUR MILLION) Q4 2015 0 Year & amount of maturity USPP 2016 16% 38 € 1,515m Bank loans (incl. RCF) 0 23% 2017 61% 30 Convertible bond 0 2018 62 173 2019 Q2 2016 487 16% 0 2020 75 € 1,519m 52% 70 >202
Slide 34: Outlook
OUTLOOK 34
Slide 35: Direct result and dividend per share 2016
DIRECT RESULT DIVIDEND PER SHARE PER SHARE 3.23 3.01 2.97 2.87 2014 2015 2016 2014 2015 2016 CAGR: 6% - 9% CAGR: 4% • Direct result p/s growth 2016 between 6-9% • Dividend p/s 2016 at least €3.08 35
Slide 36: CSR Framework
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Slide 37: CSR targets: Bricks, HR, Partners, Society
BRICKS HR PARTNERS SOCIETY • Improve energy • Employee • Create 1000 • Improve retail efficiency by 30% satisfaction scores permanent retail customer (Year: 2020) of 7.5 or higher jobs satisfaction to (Year: 2017) (Year: 2017) ‘Good’ • BREEAM- (Year: 2016) Outstanding • Increase average • New leases
Slide 38: CSR progress H1 2016
BRICKS HR PARTNERS SOCIETY • LfL energy • New employee • Newly created retail • Customer satisfaction consumption -4% survey planned for jobs increased to score 7.7in Fra, 7.6 n 2015 y-o-y Q3 2016 785 in H1 2016 NL, Fin in Q3, Bel in 2017 • BREEAM certificate • Training hours on • Green leases NL an
Slide 39: Green wall, Amazon Run, solar panel project
Green wall at Eggert, Purmerend Amazon Run at Docks Vauban, Le Havre Solar panel project at the Roselaar, Roosendaal 39
Slide 40: Appendix
WERELDHAVE 40
Slide 41: Portfolio value distribution and overview
PORTFOLIO VALUE DISTRIBUTION OVERVIEW • Independent property company, founded in 1930 • First REIT in Europe 4 • Investing & operating convenience shopping centres in the Netherlands, France, Belgium 1 and Finland 3 • ‘REIT’ status in the Netherlands, Belgium and 2 France • Listed on Euronext Amster
Slide 42: Key facts portfolio by country and asset type
KEY FACTS PORTFOLIO BY COUNTRY AND ASSET TYPE Property portfolio Jun 2016 €3.7bn Country Number of properties 40 21% Average size of property 25,175sqm Belgium 40% France Amount of shopping centre visitors €3,729m 153m Finland (2015) 24% Netherlands Loan to value ratio1 39.5% 15% Overall retail occu
Slide 43: Top 10 properties
(VALUE JUN 2016) Top 10: € 2,056 = 55% of total pf 1 Helsinki 2 Nieuwegein 3 Strasbourg 4 Rouen 5 Liege € 580m, 94,000m2 € 202m, 53,400m2 € 190m, 28,400m2 € 185m, 37,600m2 € 167m, 30,200m2 6 Rouen 7 H’hugowaard 8 Bordeaux 9 Arnhem 10 Hoofddorp € 167m, 34,400m2 € 148m, 35,100m2 € 142m, 32,400m2 € 141
Slide 44: Top 10 tenants
(VALUE JUN 2016) Top 10: 21% 1 Ahold-Delhaize 2 Hennes & Mauritz 3 Blokker 4 C&A 5 AS Watson Group Food groceries Fashion Household goods Fashion Drugstore 4.1% 3.3% 2.8% 1.9% 1.8% Excellent Retail Brands 6 Stockmann 7 Excellent Retail Brands 8 HEMA 9 Jumbo 10 ERGO Services Department store Fashion
Slide 45: Contract rent by category
Contract rent by category 05% 07% Fashion & accessoires 34% Food 10% Electronics & special goods Health & beauty Shoes, leatherware & sport 07% Homeware, household & leisure Services 07% Restaurant & cafe Department & variety stores 11% 09% 09% Tenant mix excluding parking & residential 45
Slide 46: Lease expiries by year
(IN PERCENTAGE) 2016 3.8% 1.4% • Belgium 0.5% of lease expiries in 2016; 100% of retail contracts already renewed or re-let 2017 6.9% 0.7% 2018 10.3% 1.3% • Netherlands 3.4% of lease expiries in 2016; 71% of retail contracts already renewed or re- 2019 9.6% 4.3% let, 29% under negotiation 2020 11.3%
Slide 47: IFRS NAV to EPRA NAV and NNNAV
(in € per share) IFRS NAV 30 June 2016 48.48 Effect of conversion - Diluted NAV 48.48 Fair value derivatives 0.17 Deferred tax 1.88 EPRA NAV 50.53 Fair value derivatives -0.17 Fair value interest bearing debt -2.30 Deferred tax -1.13 EPRA NNNAV 30 June 2016 46.93 47
Slide 48: Consolidated balance sheet at June 30, 2016
Consolidated balance sheet at June 30, 2016 (x € 1,000) June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Assets Equity and Liabilities Non-current assets Equity Investment properties in operation Share capital 3,639,686 3,655,269 40,271 40,271 Lease incentives 4,813 3,985 Share premiu
Slide 49: Gain market share in the micro environment
Gain market share in the micro environment BETWEEN 20,000 FOOD ANCHORED DOMINANT IN ITS TAILORED TO AND 50,000M² CATCHMENT THE MICRO ENVIRONMENT m² GLA per shopping centre Average GLA split1 Catchment area >100,000 Socio-demographic inhabitants within 20 min adaptation Food drive time 100.000 incl.
Slide 50: Gain market share in the micro environment: resilience
Gain market share in the micro environment DRIVES FOOTFALL RESILIENT EFFECT FROM THROUGH THE CYCLE E-COMMERCE Footfall # per week1 The Netherlands2 Wereldhave categories in 30.000 portfolio3 27.500 110 Food Food 20% market Services 8% F&B 4% 20.000 Internet resilient 32% Fashion & accessoires 22% 10
Slide 51: Peer company information, retail assets
44,176 26,871* 25,175 19,788 16,625 14,879 12,602 5,690 1 2 Company information, based on retail assets only for all peers 1 incl. Corio and recent disposals, based on the rentable floor area of 165 shopping centres (not corrected for ownership) and excl. 316 retail properties with an average size o
Slide 52: Investor relations contact
• Jaap-Jan Fit • jaap.fit@wereldhave.com • T +31 20 702 78 43 • investor.relations@wereldhave.com • www.wereldhave.com 52
Slide 53: Wereldhave
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