Eurocommercial Properties Nv · EURONEXT:ECMPA
Eurocommercial Properties Nv — H1 2015/2016 Earnings Presentation
20 slides from Eurocommercial Properties Nv's earnings presentation, February 2016
Slide 1: Half Year Results 2015/2016
Half Year Results 2015/2016
Slide 2: €3.3 billion of prime retail property
€3.3 billion of prime retail property 2
Slide 3: Half year results 2015/2016
Half year results 2015/2016 31 December 2015 • Direct investment result: +14.0% to €48.8 million (€1.03 per depositary receipt) • Net rental income: +2.7% to €73.9 million • Property valuations: +6.0% to €3.3 billion • Adjusted net asset value: +11.1% to €40.49 per depositary receipt • Retail sales
Slide 4: Three important acquisitions in Italy and Sweden
Three important acquisitions in Italy and Sweden Collestrada, Perugia 31/12/15 valuation: €107.4 million; 5.7% 50% share of Fiordaliso, Milan €135 million at 5.8% Increased ownership of Bergvik, Karlstad €64.6 million at 5.3% 4
Slide 5: Rental growth
Rental growth 12 months to December 2015 Number of relettings Average rental uplift Like for like and renewals on relettings and rental growth renewals Overall 170 11% 0.7% France 19 20% 0% Italy 107 10% 1.1% Sweden 44 7% 1.0% VACANCIES AND ARREARS MINIMAL 5
Slide 6: Retail sales growth
Retail sales growth* To December 2015 8.5% 7.8% 7.5% 6.5% 6.2% 5.6% 5.5% 4.5% 4.1% 4.5% 3.3% 3.5% 2.5% 1.7% 1.5% 0.5% -0.5% -0.3% Overall France Italy Sweden 12 months 3 months * Excluding hypermarkets, Systembolaget and extensions 6
Slide 7: Occupancy cost ratios
Occupancy cost ratios* December 2015 9.7% 9.6% 9.6% 9.9% 10.0% 8.0% 8.0% 8.1% 7.9% 8.0% 6.0% 4.0% 2.0% 0.0% Overall France Italy Sweden Retail sales incl. VAT Retail sales excl. VAT * Rent plus marketing contributions, service charges and tenant property taxes as a proportion of retail sales Excludi
Slide 8: Valuations
Valuations December 2015 Valuation growth Net initial yield* Six months to Twelve months to 31 December 2015 31 December 2015 At 31 December 2015 Overall 3.1% 6.0% 5.2% France 4.2% 7.2% 4.6% Italy 2.4% 5.1% 5.8% Sweden 2.5% 5.5% 5.2% * Net initial yield figures are derived by dividing expected net i
Slide 9: Extensions and refurbishments
Extensions and refurbishments December 2015 Estimated Expected net Property Project Expected timing cost return on cost FRANCE Chasse Sud, Chasse-sur-Rhône 5,500m2 extension Completion summer 2016 €9.5 million min. 7.5% Plaine de France, Moisselles-Domont Refurbishment Completion 2017 €3 million Ami
Slide 10: Funding summary at 31 December 2015
Funding summary at 31 December 2015 Shareholders’ adjusted net equity €1.94 billion Total net borrowings €1.38 million Average loan term 4.5 years Loan book hedged for interest exposure 69% Average term of hedges 8 years Average loan margin 94 bps Average overall interest rate 2.7% Net debt to adjus
Slide 11: Non-current borrowings maturity schedule
Non-current borrowings maturity schedule* €m 350 319 292 300 250 200 150 136 137 107 95 100 59 50 25 3 2 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 * Maturities are stated by calendar year 11
Slide 12: Performance overview: France
France Performance overview • Valuation of portfolio up 7.2% since December 2014 • Net initial yield: 4.6% (December 2014: 5.0%) Central Paris property yields averaged 3.7% while suburban centres averaged 5.0% • Like for like rental growth: 0% • Like for like retail sales growth: 1.7% Excluding Pass
Slide 13: Extension of Chasse Sud retail park
France Extension of Chasse Sud retail park • 5,500m2 extension of Chasse Sud retail park • Around 90% pre-let ahead of planned opening in June 2016 • Retailers include Beaumanoir Group, Picard Surgelés, Buffalo Grill and Memphis Coffee • Expected to produce a net return on total cost of €9.5 million
Slide 14: Performance overview: Italy
Italy Performance overview • Valuation of portfolio up 5.1% since December 2014 • Net initial yield: 5.8% (December 2014: 6.2%) • Like for like rental growth: 1.1% • Like for like retail sales growth: 5.6% • Occupancy cost ratio: 8.1% • Acquisition of Fiordaliso in Milan and Collestrada in Perugia •
Slide 15: Acquisition of Collestrada, Perugia
Italy Acquisition of Collestrada, Perugia • Perugia is a wealthy town in Umbria located halfway between Florence and Rome • Total GLA of 28,000m2, including an 11,045m2 hypermarket let on an 18 year lease to Ipercoop • Catchment of 345,000 people and attracts almost five million visitors a year • 50
Slide 16: Acquisition of Fiordaliso, Milan
Italy Acquisition of Fiordaliso, Milan Carosello • Acquisition from Gruppo Finiper of 50% of Fiordaliso shopping centre in southern Milan • Total cost €121 million; net initial yield of 5.6% Milan • Centre has total floor area of 55,800m2 – gallery 32,000m2, 12,000m2 of external retail units and 11,
Slide 17: Performance overview: Sweden
Sweden Performance overview • Valuation of portfolio up 5.5% since December 2014 • Net initial yield: 5.2% (December 2014: 5.6%) • Like for like rental growth: 1.0% • Like for like retail sales growth: 6.2% 3 months to December 2015: 7.8% • Occupancy cost ratio: 7.9% • Increase in ownership of Bergv
Slide 18: Increase in ownership of Bergvik, Karlstad
Sweden Increase in ownership of Bergvik, Karlstad • Acquisition in November 2015 of the 11,000m2 COOP hypermarket and 8,000m2 of new shops adjoining our existing gallery of 13,750m2 Hyper leased back to COOP on a 15 year term • Total purchase cost SEK 600 million (€64.6 million), representing a net
Slide 19: Extension of Eurostop, Halmstad
Sweden Extension of Eurostop, Halmstad • 16,000m2 extension and refurbishment • Around 70% of the new retail area is now pre-let New tenants include Stadium, Coop Extra, Nilson Group, Jack and Jones, Vero Moda and Gina Tricot • Total cost expected to be approximately €75 million, yielding a net retu
Slide 20: Outlook
Outlook • Pursue good quality, earnings accretive acquisitions in France, Italy and Sweden • Continue extension and refurbishment programme to upgrade existing properties • Take advantage of the low interest rate environment to reduce cost of debt 20
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