Wereldhave N.v. · EURONEXT:WHA
Wereldhave — 9M 2011 Earnings Presentation
27 slides from Wereldhave's earnings presentation, Nov 3, 2011
Slide 1: Investor presentation 9M 2011 results
Investor presentation 9M 2011 results
Slide 2: Recent highlights
Recent highlights • Occupancy rate improving further; lettings in Belgium, Spain, UK and US (a.o. 3,300 sqm office space in Eilan) • 20-year lease signed for hotel Eilan-project; to be operated as luxury Hotel & Spa by Interstate, the largest independent hotel operator in the US • Sale agreements fo
Slide 3: 9M 2011 key figures
9M 2011 key figures • Direct result p/s: € 3.70 (-3.9% yoy) • Total result p/s: € 3.14 • Revaluation portfolio: -0.3% • NAV p/s: € 73.19 (-2.6% yoy) • Investment portfolio: € 2,801m (-2.1% yoy) • Development pipeline ± € 456m • Occupancy 90.6% (EPRA) • LTV 41% 3
Slide 4: Country update
Country update • Finland: Itakeskus refurb on track; sale Tapiola • Netherlands: active asset management implemented • France: acquisitions mainly targeting new development projects • Spain: Planetocio turning the corner • Belgium: Nivel >80% pre-let / heads of terms • UK: asset management plan Pool
Slide 5: Total result (€ m)
Total result (€ m) 9M 2011 9M 2010 yoy Direct result 84.8 87.6 -3.1% Indirect result 11.7 -9.0 Profit 73.1 78.6 -6.9% Minority interest 5.5 4.8 15.7% Profit for shareholders 67.6 73.8 -8.4% 5
Slide 6: Direct result (€ m)
Direct result (€ m) 9M 2011 9M 2010 yoy Gross rental income 155.6 154.1 1.0% Operational costs -32.9 -33.6 -2.0% Net rental income 122.7 120.5 1.8% General costs -11.8 -11.7 0.8% Other 1.4 0.8 119.9% Net financial costs -26.0 -18.9 37.7% Taxes -1.5 -3.1 -50.8% Direct result 84.8 87.6 -3.1% Minority
Slide 7: NRI bridge (€ m)
NRI bridge (€ m) 140 9.4 -5.4 0.3 -2.1 122.7 120.5 120 100 80 60 40 20 - NRI 9M 2010 Acquisitions Disposals Like for like Currencies NRI 9M 2011 7
Slide 8: Net rental income (€ m)
Net rental income (€ m) 9M 2011 % total yoy l-f-l Total 122.7 100% 1.8% 0.2% Belgium 17.8 14.5% -0.7% -3.8% Finland 21.6 17.7% 2.5% 2.5% France 8.6 7.0% 55.2% 55.2% The Netherlands 29.9 24.3% 8.3% 0.5% Spain 5.4 4.4% -24.2% -24.2% United Kingdom 14.6 11.9% 13.6% 3.4%* U.S.A. 24.8 20.2% -13.2% -5.5%*
Slide 9: Occupancy (EPRA)
Occupancy (EPRA) Retail Office Other Total Total Sept 2011 Dec 2010 Belgium 99.9% 83.5% - 93.2% 87.4% Finland 96.7% - 100% 96.8% 98.0% France 90.8% 99.1% - 98.1% 97.9% The Netherlands 97.0% 98.1% 87.4% 96.0% 98.2% Spain 52.4% 90.3% 100% 80.0% 85.7% United Kingdom 95.2% 94.3% 100% 94.9% 91.1% U.S.A.
Slide 10: Lease expiry (rent as % of contracted rent in September 2011)
Lease expiry (rent as % of contracted rent in September 2011) 20,0% 1% 18,0% 16,0% 1% 14,0% 1% 0,3% 0,1% 12,0% 13% 8% 0,3% 10,0% 6% 0,2% 8,0% 8% 3% 6,0% 1% 11% 4,0% 3% 7% 7% 1% 1% 5% 0,1% 6% 2,0% 4% 1% 3% 3% 1% 2% 1% 0,0% 1% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 >2020 Offices Retail Othe
Slide 11: Indirect result
; VLE iL >i 7 sos =—ses is i | b= =| W) i) Sen rs) irec WERELDHAVE w Wereldhave. Value for tomorrow. Ind -
Slide 12: Indirect result (€ m)
Indirect result (€ m) 9M 2011 9M 2010 Revaluation -8.8 2.6 Results on sales 2.9 2.3 Deferred tax -3.2 -4.3 Net financial costs -3.4 -2.3 Other 0.8 -7.3 Indirect result -11.7 -9.0 Minority interest 0.3 -0.5 Shareholders -12.0 -8.5 12
Slide 13: Yield movements & cap rates 9M 2011
Yield movements & cap rates 9M 2011 Retail Office Other Resi Cap rate Belgium 0.0% 0.0% - - 6.3% Finland 0.0% -0.2% - - 5.9% France 0.0% 0.0% - - 6.0% The Netherlands 0.0% 0.0% -0.3% 0.0% 6.1% Spain 0.0% -0.3% -0.3% - 7.0% United Kingdom -0.3% -0.1% 0.0% - 6.8% U.S.A. 0.0% -0.1% - 0.0% 6.7% Cap rate
Slide 14: Balance sheet & Debt profile
=) Sse [SSS aa WERELDHAVE = — = Balance sheet & Debt profile 7 w Wereldhave. Value for tomorrow.
Slide 15: Sound balance sheet (€ m)
Sound balance sheet (€ m) September 2011 2010 2009 Total assets 3,153.8 3,121.8 2,597.0 Interest bearing debt long -1,112.4 -876.9 -572.1 Interest bearing debt short -85.6 -271.1 -140.8 Deferred tax liabilities -132.0 -129.3 -119.0 Other liabilities -112.2 -116.4 -78.6 Equity 1,702.6 1,728.1 1,686.5
Slide 16: Debt: conservative ratio's at low cost
Debt: conservative ratio’s at low cost • Interest bearing debt: € 1,215m (2010: € 1,174m)* • Fixed/floating: 48%/52% (Dec 10: 57%/43%) • Average cost: 3.0%* (Dec 10: 2.6%) • LTV: 41% (Dec 2010: 39%) • ICR: 5.4x (Dec 2010: 6.8x) * On nominal basis. On IFRS basis: 3.3% (Dec 2010: 3.2%) 16
Slide 17: Debt profile September 2011
Debt profile September 2011 Type of debt Maturity profile total € 1,215m* 400 370 350 331 mortgages 3% US PP 18% 300 275 250 bank loans 200 169 (unsecured) convertible 150 41% bond 09-14 19% 100 84 62 43 47 50 24 26 convertible 3 bond 10-15 0 19% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202
Slide 18: Future: 2011/2012
Future: 2011/2012 • Office portfolio: continued focus on improving occupancy rate • Retail portfolio: focus on l-f-l rental growth and refurbishment- /extension- plans • Further acquisitions of UK shopping centres and offices in Paris & Madrid • Continuation of active sales program non-strategic ass
Slide 19: Development pipeline
>i os mses is i | ine w Wereldhave. Value for tomorrow. pipe aed Cc a co) 2 = 5 e. it i = > Y Qa 7
Slide 20: Development pipeline overview
Development pipeline overview Project Location Total Capex sofar Expected net Estimated Remarks investment yield completion San Antonio I* Texas, US $ 200m/€ € 112m**** 6.75-7.25% Q4 2011 - Q1 20 yr fixed term lease signed for 140m** 2012 hotel Nivelles I Belgium € 44m** € 23m**** 7.5-8.0% 2012 >80%
Slide 21: Hotel Eilan Oct 2011
Hotel Eilan Oct 2011 (w Wereldhave. Value for tomorrow. Uy)
Slide 22: San Antonio, progress report
San Antonio, progress report Number or Completion Market rent Comments m2 USD Offices 19,100 2010 Q3 21-22 per sqf, 55% let in multi-tenant building net (5,300 sqm) Hotel 165 rooms 2011 Q4 100 net Final lease signed, 20 yr fixed Rev.PAR term, operated by Interstate under luxury brand Apartments 539
Slide 23: Appendix
oases i me i i Appendix WERELDHAVE FS 3 e _ r) = S ] L 3 2 @ = o > é > % = | 3 @ £ G = 7
Slide 24: Financial cost (€ m)
Financial cost (€ m) YTD Q3 2011 YTD Q3 2010 yoy direct indirect direct indirect direct indirect Interest expenses -26.2 -18.5 42.1% Amortised costs of loans -1.8 -1.4 25.4% Non-cash option expense convertible bonds -3.4 -2.3 48.3% Other non-cash costs -1.5 -0.8 85.4% Interest income 0.3 0.2 -3.6% C
Slide 25: EPRA lease data
EPRA lease data Average lease length Contract rent expiring in: to break to expiry Year 1 Year 2 Year 3-5 (yr) (x € 1,000) Belgium 2.5 4.9 335 9,209 15,020 Finland 3.4 3.4 1,061 8,007 12,041 France 6.2 6.9 9 253 2,149 The Netherlands 3.0 3.4 838 6,676 20,029 Spain 2.1 3.5 379 3,466 4,799 United King
Slide 26: Interest rate & currency sensitivity September 2011
Interest rate & currency sensitivity September 2011 • Floating rate loans 52% of debt (FY10: • Hedge on investments (end of 43%) period) • Average interest: 3.0%* (Dec 10: 2.6%) - USD 51% (Dec 09: 45%) • 0.5% change in interest rates - GBP 63% (Dec 09: 72%) EPS change: € 0.15 (or 3.,0% of DR) • A ch
Slide 27: Investor relations contact
Investor relations: Charles Bloema/Jaap-Jan Fit tel: +31(0)703074543 investor.relations@wereldhave.com www.wereldhave.com