Wereldhave N.v. · EURONEXT:WHA
Wereldhave — Wereldhave Belgium — Investor Presentation (May 2012)
90 slides from Wereldhave's investor presentation, May 22, 2012
Slide 1: Wereldhave Property Tour Belgium
Wereldhave Property Tour Belgium May 22nd, 2012
Slide 2: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 2
Slide 3: Introduction
Introduction Luc Plasman (58) Frank Adriaensen (49) • Managing Director Wereldhave • Director Development Wereldhave Belgium (01/2011) Belgium (01/2011) • Managing Director ING RE • Development Manager ING RED ( Development (12/1997-12/2010) 10/2007 -12/2010) • General Manager Wilma Project • Wilma
Slide 4: Profile Wereldhave Belgium
Profile Wereldhave Belgium • Established in 1981 • Belgian REIT status and stock exchange listing since 1998 • Property portfolio: ± € 457 m ( 526 m per 11/04/2012); Development pipeline ± € 222 m (non- committed) • LTV: 18.8% ( 16.6% as per 11/04/2012 ) • 100% in Belgium • Market cap.: ± € 357 m •
Slide 5: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 5
Slide 6: Strategy
Strategy • Focus on shopping centres: - Renovations and extensions & pro active management - Investing in appeal, quality and sustainability ↓ Increasing visitor numbers, retail sales and rental income • Office portfolio: - focus on increasing occupation ratio - gradual sale & reinvestment in shoppi
Slide 7: Strategy: focus on shopping centers
Strategy: focus on shopping centers Waterloo 3% Tournai 8% Office 28% Vilvoorde 8% Liège 29% Brussels 9% Shopping Genk 10% centres 72% Nivelles 22% Berchem- Antwerp 11% • Portfolio Mar 2012 € 457m (€ 526m per 11 April) • Medium sized centres (ca. 15.000 – 40.000 m2) • Dominant in their catchment are
Slide 8: Offices
BRUSSELS Offices Center Antwerp Pheriphery Veldekens I Orion Centre Veldekens II Madou Centre Veldekens III BRUSSELS Periphery Medialaan 28 Medialaan 30-32 Jan Olieslagerslaan 8
Slide 9: Retail
GENK- Shopping I Retail NIVELLES GLA Total 15.601 m² WHB 11.407 m² Gross Rent: € 1,51 mln GLA Total 28.617 m² Gross Rent: € 7,27 mln GENK- Stadsplein TOURNAI WATERLOO GLA Total 15.039 m² Gross Rent: € 3,39 mln LIÈGE GLA Total 18.049 m² WHB 15.060 m² Gross Rent: € 2,83 mln GLA Total 3.350 m² Gross Re
Slide 10: Belgian market retail trends
Belgian market retail trends • Challenging economic environment • Retail sales better than in neighbouring countries, due to automatic indexation of salaries • Increasing online sales • Real estate investment market: strong preference for retail as “safe haven” compared to office and/or logistics in
Slide 11: KPI's Belgian shopping centre portfolio
KPI’s Belgian shopping centre portfolio • Gross Rent € 16.5m • Net Rental Income € 16.1m • Vacancy Dec 2011 0% • ≠ Visitors 2011 10.3 mln/year • Number of lease agreements 231 • LfL NRI growth Q1 2012 3,3 % 11
Slide 12: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 12
Slide 13: Strengthened management organisation
Strengthened management organisation • ING RED team joined in Dec 2010 • Increased development know-how • New functions: Leasing Director, Marketing Director • 28 employees per May 2012 13
Slide 14: Organisation
Organisation MANAGEMENT TEAM Luc PLASMAN Frank ADRIAENSEN Eddy DE LANDTSHEER RECEPTION – HELPDESK (1) LEGAL (1) SECRETARIES (2) HR+Fin Asst (1) PROJECT DEVELOPMENT ASSET MANAGEMENT FINANCE Frank ADRIAENSEN Luc PLASMAN Eddy DE LANDTSHEER LEASING RETAIL Project Development (4) Asset Manager Offices (1
Slide 15: Strategy/Portfolio/Organisation: Q&A
Strategy/Portfolio/Organisation: Q&A 15
Slide 16: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 16
Slide 17: Mall management model
Mall management model More Improve attractive Tenant Mix More Customers + + -/- + Higher Who Stay Invest NRI Footfall Longer + + And Spend Raise Higher More Rents Turnover 17
Slide 18: Mall management: Marketing
Mall management: Marketing • Professionalizing marketing and promotion - marketing manager - synergies between our centres • “Always something happening” in our centres • Active involvement of tenants association • Usage of old and new media tools for communication - increased attention for websites
Slide 19: Mall management: 'old' activities in the mall
Mall management: ‘old’ activities in the mall 19
Slide 20: Mall management: 'new' activities in the mall
Mall management: ‘new’ activities in the mall 20
Slide 21: Mall management: Speciality leasing
Mall management: Speciality leasing • Actual situation: limited to temporary kiosks • Future: increase attractiveness and revenues e.g. - high quality kiosks (coffee bar, juice bar, chocolates, Goldbuyers, …) - publicity panels (electronic displays inside & outside) • Synergy between our different s
Slide 22: Mall Management: Q&A
Mall Management: Q&A 22 wed.
Slide 23: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 23
Slide 24: Leasing
Leasing Old style New style • No dedicated leasing department • Leasing Director • Main pre-occupation: 100 % let • Main pre-occupation: - improve quality of shops - improve branch mix - increase rental income • Rely on 1 agent • Pro-active direct contact with main international brands (Retail Conne
Slide 25: Leasing: Belgian retail lease law
Leasing • Belgian law on retail lease: - strictly imposed by law. No possibility to deviate - 9 year leases, with break option after 3-6 years for tenant - very strict time schedules and formal procedure - third offer difficult to rotate tenants even at renewal moment 25
Slide 26: How to create like-for-like rental growth
How to create like-for-like rental growth • Negotiate toughly at moment of lease renewals • Organise “3rd offer” • Include turnover component in lease agreements (extra advantage: obligation for tenant to communicate turnover) • Speciality leasing 26
Slide 27: Leasing activity 2011
Leasing activity 2011 • Existing centres : 36 leases (9 new leases and 27 renewals) • Rent increase : +/- 15% • Extension Nivelles : 29 new leases 27
Slide 28: Leasing ambition 2012-2014
Leasing ambition 2012-2014 • Average increase of rent of 12.5% • Tenant rotation: 5% • Like-for-like NRI growth: 180 bps • Other Like-for-like NRI growth: 40 bps - increase specialty leasing - extra rent based on turnover component • Leasing new shops in Genk Shopping I, Gent Overpoort, Retail Park
Slide 29: Leasing: Q+A
Leasing: Q+A 29
Slide 30: Agenda
Agenda • Introduction • Strategy • Organisation • Mall management • Leasing • Development 30
Slide 31: Development: standing portfolio
Development: standing portfolio – State of the art shopping centres • Refurbishment / renovation • Critical mass ( 15.000 m² -> 25.000) – From “development product” -> “consumer driven centres” • Services ( hardware for active management) • Parking ( accessibility, comfort, …) • Shop size (mix ) – G
Slide 32: Development: acquisitions
Development: acquisitions – Belgian market : due to permit policy very few acquisition opportunities – Initiating projects – JV partner for RE developers (know how, equity, perspective of management) 32
Slide 33: Development pipeline
Development pipeline Project Total Capex Expected Estimated investment sofar net yield completion Gent € 15m € 2m 6.75-7.0% 2013 Tournai I € 16m € 4m 7.0-7.25% 2014 (Retail park) Genk (100%) € 58m € 2m 6.75-7.25% 2014 (Refurb+Extension) Nivelles II (Retail park) € 12m € 2m 7.0-7.25% 2014 Waterloo €
Slide 34: Development: Q+A
Development: Q+A 34
Slide 35: Shopping Nivelles
Wereldhave Property tour Belgium Shopping Nivelles May 22nd, 2012
Slide 36: Shopping Nivelles
Shopping Nivelles • Function: Shopping Centre • Opening: 1975 • Refurbishment: 2008 2010-2012 extension • GLA: 28.500 m² (15.540 m²) • Shops: 101 units (60) • Catchment area: Primary: 32.225 persons Secundary: 351.810 persons • Visitors: 3.3 mln/ year (before extension) • Gross rent: € 7.3m (€ 3.0m)
Slide 37: Location and catchment area
Location and catchment area 37
Slide 38: Location towards city center
Location towards city center 38
Slide 39: Competition
Competition Nivelles Ville 2 Charleroi L’esplanade Louvain-la-Neuve 39
Slide 40: Floor Plan
Floor Plan e SHOPPING NIVELLES Librairie « Papeterie 45 Catamia SO Chub 2% Entrée Liew 15 Press Shop Bijouteries 22 Bijoun Laurent 42 Vere Audio/video’/CD Yaa Free Rucord Shop t2) Music Woy 52 Photo Pall Telaphones 66 Bas 3? = Mobatar Censor 44 Studio Telecom 26 The Phone House Computer & Software 1
Slide 41: Extension
it Extension Masterplan diagram
Slide 42: Extension
Extension 42
Slide 43: Impressions
Impressions ee Ww ‘
Slide 44: Impressions Opening
Impressions Opening 44
Slide 45: Development Shopping Nivelles
Development Shopping Nivelles • Ambition - Goal: from local run shopping → regional fun shopping - Sustainable shopping centre - Increased number of visitors +/- 3.300.000/year → 4.500.000/year (expected) - first weekend (Friday – Sunday): > 100.000 visitors • Program - Critical mass: - 15.720 m2 GL
Slide 46: Development Shopping Nivelles
Development Shopping Nivelles • Financials • Extension: * Investment: € 44m * Valuation: € 61.5m - 12,5 % transfer tax = € 54.6m based on market rent: € 3.9m yield: 6% * Created value: € 10.6m • Existing part: * Valuation Dec 2011 = € 56.1m * Valuation Dec 2010 = € 50.0m * Created value: € 6.1m thro
Slide 47: Sustainability
Sustainability • Increased thermal insulation: K value = 30 (limit ≤ 45) • Low energy technical equipment (eg. Heating system) • Central and selective waste treatment • Re-use of rainwater 47
Slide 48: Sustainability
Sustainability Photovoltaic panels • 1.718 panels • 5.736 m² gross • 500 kWp • Electricity used for common areas (reduction of common charges) 48
Slide 49: Sustainability
Sustainability breeam The Code for Sustainable Buildings This is to certify that Shopping Center Nivelles: extension, Chaussée de Mons 18, 1400 Nivelles, Belgium has achieved an interim score of 60.00%, and a BREEAM rating of VERY GOOD \ \\ I\ /\ ‘Outstanging This Design stage assessment was carried
Slide 50: Future plans- retail park
Future plans- retail park ee 2a Ps SHOPPING CENTER MVELLES RETAR BUREAL DARCHETECTUME WAN HAGREN 8" Hui us ) 50
Slide 51: Belle-Ile, Liège
Wereldhave Property tour Belgium Belle-Ile, Liège May 22nd, 2012
Slide 52: Belle-Ile
Belle-Ile • Function: Shopping Centre • Opening: 1995 • Refurbishment: 2002 • GLA: 30.449 m2 • Shops: 98 units . Visitors: 4.5 mln/year • Gross rent: € 10.0m • Parking: 2.200 places 52
Slide 53: Location and catchment area
Location and catchment area 53
Slide 54: Location towards city center
Location towards city center 54
Slide 55: Competition
Competition Belle-Ile Galleries St Lambert Liège Cora Rocourt Juprelle Médiacité Liège 55
Slide 56: Floor plan
Floor plan bz ) 56
Slide 57: Impressions
Impressions 57
Slide 58: Lease Renewals
Lease Renewals Current situation After renewal Tenants Annual rent Rent /m2 Annual rent Rent /m2 % 30 € 3.85m 492 € 4.51m 588 17.4% Excl. € 2.38m € 3.05m 28.1% Carrefour+ H&M 58
Slide 59: Shopping 1, Genk
Wereldhave Property tour Belgium Shopping 1, Genk May 22nd, 2012
Slide 60: Shopping 1
Shopping 1 • Function: Shopping Centre • Opening: 1968 • Refurbishment: 2012-2014 • GLA: 15.601 m2 (11.407 m2 WHB) • Catchment area: Primary: 88.348 pers. Secundary: 164.300 p. • Visitors: 4.2 mln/ year • Gross rent: € 1.5m • Parking: 720 places 60
Slide 61: Location and catchment area
Location and catchment area 61
Slide 62: Location towards city center
Location towards city center 62
Slide 63: Competition
Competition Shopping 1 Twee Torenwijk Hasselt M2 Maasmechelen Stadsplein Genk 63
Slide 64: Shopping 1
Shopping 1 64
Slide 65: Shopping 1
Shopping 1 ab ) 65 ms
Slide 66: Extension at study
Extension at study Extension Renovation/ extension Extension 66
Slide 67: Extension at study
i Extension at study “ 2
Slide 68: Extension at study
Extension at study • Ambition - Shopping 1 “the place to be” in Genk - Upgrading • Program - Refurbishment of interior, exterior (facade, entrances) - Extension of GLA 11.500 m2 / ca. 40 shops - Renovation of the roof parking - New parking building • Design - More visible entrances - Bringing daylig
Slide 69: Shopping 1
Shopping 1 69
Slide 70: Impressions
Impressions 70
Slide 71: Impressions
Impressions ee Wu) 7
Slide 72: Les Bastions, Tournai
Wereldhave Property tour Belgium Les Bastions, Tournai May 22nd, 2012
Slide 73: Les Bastions
Les Bastions • Function: Shopping Centre • Opening: 1979 • Refurbishment: 1996, 2012-2014 • GLA WHB : 15.060 m2 • Catchment area: Primary: 94.000 pers. Secondary: 120.000 p. • Visitors: 3.2 mln/ year • Gross rent: € 2.8m • Parking: 1260 places 73
Slide 74: Location and catchment area
Location and catchment area 74
Slide 75: Location towards city center
Location towards city center 75
Slide 76: Competition
Competition Les Bastions Euralille Lille Les Grands prés Mons K van Kortrijk Kortrijk Ring Shopping Kortrijk 76
Slide 77: Floor plan
Floor plan fae Optique Alain Aflelou Libewirie - Papetorte Chb Ludorama Bijoutories Tolaphonws Nobo The Phone House Sports Nearce eg Nettoyage 4 sec Meance Fashion Puptike Press eco Lingerie Caitfeurs Eta Lingerie Alexander K Hunkemdtler Shanpco Enfants Banque @ Equiperment dela maison on Leenbakior
Slide 78: Extension at study
Extension at study 78
Slide 79: Extension at study
Extension at study Retail Park 10.000 m² 14.00 m²Extension 79
Slide 80: Extension at study
Extension at study • Ambition - Securing the dominant position in the catchment area - Creating a fashionable retail experience • Program - Refurbishment of interior, exterior facade and parking - Extension of GLA 14.500 m2 / ca 40 shops - Parking 2.100 ppl. - Retail Park : GLA 10.000 m2 / 6 à 10 un
Slide 81: Impressions Retail Park
Impressions Retail Park ee 81 UEREL CAVE OtLcem
Slide 82: Impressions Extension
Impressions Extension Le = ——e egg? —— ’ i, ’ — i = i — ae -~_ _ ji 1 hv he fre sis { - i Mh ge a] - iL - i j » a z= “% + ¢ Biadith [
Slide 83: Waterloo City Centre
Wereldhave Property tour Belgium Waterloo City Centre May 22nd, 2012
Slide 84: Waterloo
Waterloo • Function: Inner city mixed development • Opening: 1966 • Refurbishment: 2014-2016 • GLA: 3.350 m2 • Shops: 11 • Visitors: 0.76 mln/year • Gross rent: € 0.8m • Parking: 95 places 84
Slide 85: Location and catchment area
Location and catchment area 85
Slide 86: Location towards city center
Location towards city center 86
Slide 87: Competition
Competition Waterloo L’esplanade Louvain-la-Neuve Woluwe Schopping Center Woluwe Nivelles 87
Slide 88: Floor plan
Floor plan 88
Slide 89: Extension at study
Extension at study Le Chausste 02 De de Bruxelles \ \ \ . @ \ ® & — a ae | | ~ L a IA | 7 - re ty y
Slide 90: Extension at study
Extension at study 90
Wereldhave Belgium — Investor Presentation (May 2012) on 6ix