1 / 63

Investor presentation Q1 2010 results

Investor presentation Q1 2010 results. Q1 10 highlights. Occupancy rate stabilised Cap rates virtually unchanged Succesful refinancing of 2010 Syndicated Term Facility Additional reletting in Paris

lee
Download Presentation

Investor presentation Q1 2010 results

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investor presentation Q1 2010 results

  2. Q1 10 highlights • Occupancy rate stabilised • Cap rates virtually unchanged • Succesful refinancing of 2010 Syndicated Term Facility • Additional reletting in Paris • Acquisition of shopping centre ‘Koningshoek’ in Maassluis, the Netherlands for € 40m. Four small assets sold in UK for € 5m • Completion office space San Antonio project in Q3 10

  3. Business environment • Macro picture slowly improving with GDP forecasts, producer- and consumer trust on the rise • But consumer spending remained subdued in Q1 and outlook on further recovery is blurred by possible impact from ‘Greek crisis’ • Property markets: investment volumes gradually rising again (especially prime properties/long leases). ‘Forced selling’ remains limited, for now. Prime yields stable in most- and slightly lower in some markets • Letting markets: no significant improvements yet. Office markets still mostly face negative net take-up and lowering rents. Retail rents stable in good shopping centres/locations but under pressure in weaker centres/locations 3

  4. Q1 2010 key figures • Direct result p/s: € 1.20 (-5% yoy) • Total result p/s: € 0.50 • Revaluation portfolio: -0.5% • NAV p/s: € 75.19 (-11% yoy) • Investment portfolio: € 2,663m (+10%) • Development pipeline ± € 250m • LTV 36% (± 37% after ‘Maassluis’-acquisition in Q2 2010)

  5. Gross rental income (€ m) * in local currency

  6. Occupancy Mar 010

  7. Financial costs

  8. Financial cost (€ m)

  9. Interest rate & currency sensitivity Mar 2010 • Floating rate loans 55% of debt (FY09: 38%) • Average interest: 2.2% (2009: 2.6%)* • 0.5% change in interest rates EPS change: € 0,12 (or 2.5% of DR) • Hedge on investments (end of period) - USD 62% (2009: 62%, H1 09: 68%) - GBP 60% (2009: 61%, H1 09: 66%) • A change of 10% on period-end exchange rates has an impact of €1.78 (or 2.4%) on the NAV p/s • On earnings: a change of 10% of average exchange rates (USD+GBP) has an impact of € 0.17 (or 3.4%) on DIR p/s * On nominal basis. On IFRS basis: 2.7% (2009: 3.3%) 11

  10. Indirect result

  11. Revaluation Q1 2010 14

  12. Yield movements & cap rates Q1 2010 Cap rate = net market rent divided by gross market value including transaction costs

  13. Balance sheet & Debt profile

  14. Debt: conservative ratio’s at low cost * On nominal basis. On IFRS basis: 2.7% (2009: 3.3%) • Interest bearing debt: € 951m (2009: 713m) • Fixed/floating: 45%/55% (2009: 62%/38%) • Average cost: 2.2%(2009: 2.6%)* • LTV: 36% (37% after ‘Maassluis’-acquisition; 2009: 28%) • ICR: 7.0x (2009: 8.1x) • ± € 90m of committed credit facilities and cash available after € 40m ‘Maassluis’-acquisition, dividend payment and EUR 270m refinancing of 2010 STF Wereldhave in top 5 of lowest geared listed property companies in Europe

  15. Debt profile Pro forma after € 40m ‘Maassluis’ acquisition, dividend payment and refinancing 2010 STF* *STF: syndicated term facility ** on nominal basis 19

  16. Development pipeline overview *Phase II USD 140m; decision based on success of phase I ** Phase II decision based on success of phase I and granting of permits

  17. Future: 2010 and onwards • Focus on increasing occupancy rate. Expiries in US and Belgian office portfolio challenging in current markets • Portfolio size per country to increase to > € 400m • Focus on retail to increase from 50% to 50-60% • Main targets: UK (retail), France (offices) and Spain (offices); opportunities in other countries also pursued • Dutch portfolio: focus on next stage → active management and refurbishments- /extension-plans • Sale of industrial assets and assets < € 20m • Completion of developments projects to contribute to results from 2011 onwards

  18. Appendix I Expanding in Dutch retail

  19. Maassluis: De Koningshoek

  20. Maassluis: De Koningshoek • Function: City’s dominant shopping centre • Owners: Wereldhave and ASR • Opening: 1971 • Refurb/Extension: 1985 GLA: Total :20,500 m2 W’ have :12,600 m2 retail 3,900 m2 other • Catchment area: Primary:31.500 persons Secundary:6.500 persons • Gross rent: € 2.8 m • Parking: 1000 p.p. (owned by city) • Anchor tenants: Hema, Albert Heijn, Hoogvliet, Supercoop • Remarks: Plans for refurbishment & extension with 8,000 - 10,000 m2, targeting net yield of 7% 24

  21. Purmerend: Eggert • Function: Part of city centre retail structure • Opening: 1979 • Refurbishment: 1992 • GLA: Total :20,555 m2 W’have :19,456 m2 retail :277 m2 other • Catchment area: Primary:78,450 persons Secundary:82,100 persons • Gross rent: € 5.0m • Parking: 390 p.p. (owned) • Remarks: - Growing catchment area - Solid market position - Strong tenant mix with further potential 25

  22. Capelle a/d IJssel: De Koperwiek • Function: City’s dominant shopping centre • Owners: Wereldhave and Van der Vorm Vastgoed • Opening: 1965 (Van der Vorm) • Extension: 1995 GLA: Total :22,000 m2 W’ have :9,021 m2 retail 78 m2 other 61 app. • Catchment area: Primary:63,350 persons Secundary:28,000 persons • Gross rent: € 2.8m • Parking: 925 p.p. (owned by city) • Remarks: - Above average spending power - Extension possibilities 26

  23. Eindhoven: Woensel XL • Function: Large district centre • Owners: Wereldhave, Redevco, IEF, private investors • Opening: 1967 • Refurb + extension: 2004-2006 • GLA: Total :41,000 m2 W’have :9,858 m2 retail 484 m2 office • Catchment area: Primary:100,800 persons Secundary:133,000 persons • Gross rent: € 3.7m • Parking: 1000 p.p. (not owned) • Remarks: - Growing catchment area - Solid market position - Expand ownership 27

  24. Roosendaal: De Roselaar • Function: Part of city centre retail structure • Opening: 1968 • Refurbishment: 1996 • GLA: Total :28,000 m2 W ‘have :12,407 m2 retail 167 m2 other • Catchment area: Primary :77,700 persons Secundary :50,000 persons • Gross rent: € 3.5m • Parking: 415 p.p. (not owned) • Remarks: - Expand ownership - Solid market position - Stable catchment area - Strong tenant mix with further potential 28

  25. Outlook Dutch retail: markets • Dutch retail market: below-average risk profile in European perspective • Rental income from retail relatively resilient: No turnover based rent: less volatility on up- and downside Rent reviews: ‘smoothening’ impact due to legal framework • Supply: new developments subdued due to long planning process and physical restrictions • Increasing divergence in performance of core- and secondary locations expected to continue; Wereldhave only present on core locations with well established centers 29

  26. Primary shopping centres in Holland Eggert Winkelhof Kronenburg De Koperwiek Etten-Leur Woensel XL De Roselaar 30 Around 53 shopping centres larger than 20.000 m2 GLA Strong concentration around the larger cities / ‘ Randstad XL’ After the acquisition Wereldhave owns >13% in this segment of primary shopping centres

  27. Appendix II Development pipeline

  28. Nivelles, Belgium Description: Extension shopping center & Mixed-use area Size: Existing: 16,195 m2 (renovation completed) Extension I: 12,000 m2 (shopping center) Extension II: offices, apartments & hotel Sustainability: Energy saving installations Use of materials Investment: Extension shopping center: € 42 mln Planning: Shopping centre: 2012 Other functions: 2012 - 2015 32

  29. Nivelles, Belgium 33

  30. Belgium, Tournai Description: Extension current shopping center Size: Existing: 15,540 m2 Extension: 4,500 m2 (shopping center) 10,000 m2 (retail park) 500 parkings 26 apartments Sustainability: Energy saving installations Use of materials Investment: € 38m Planning: Retail park phase I: 2012 Extension shopping: 2012 Retail park phase II: 2012 Apartments: 2012 34

  31. San Antonio, Texas, USA Description: Mixed use area with 1,400 apartments; 20,000 m2 offices; 6,500 m2 retail and a 165 room Hotel; amphitheater; chapel Size: Land: 119 acres Sustainability: Water recycling; solar energy Investment: Total USD 330m Phase I: USD 190m Planning: Phase I: 532 apartments; 6,500 m2 retail; 20,000 m2 offices; hotel Completion: 2010 – 2011 35

  32. San Antonio, progress report 36

  33. Hotel

  34. Office

  35. Residential

  36. S&P/Case Shiller home price indices (sa) 40

  37. 41

  38. Unemployment rate, Texas (%, end of period; nsa)

  39. Appendix III Profile, objectives, strategy

  40. Wereldhave profile Independent property company, founded in 1930 Dutch REIT status Property portfolio: ± € 2.7 bn Development pipeline max. 10% of assets Present in Continental Europe 68%, UK 8% and USA 24% ± 85 properties; average size ± € 30m Market cap: ± € 1.3bn Free float: ± 100% High dividend yield (± 7.5 %) Pay-out ratio: 95% Included in major indices: AEX, EPRA, GPR, MSCI

  41. Diversification of investments Mar 2010 45

  42. Financial objectives • Stable growth direct result and dividend… • … while maintaining solid balance sheet ratios; solvency between 55% - 65% • Pay-out ratio 85-95% of direct result

  43. Strategy: value creation • Investment in and management of shopping centres: • in-house active management • Investment in offices and residential complexes: • timing acquisitions and sales • In-house property development: • cost control • quality control • retaining development margin

  44. Strategy: risk management • Portfolio well diversified over 7 countries and 3 sectors • Only mature, liquid and professional property markets • Diversified tenant base • Portfolio renewal: development max. 10% of assets • Solid balance sheet: solvency 55-65% • Currency exposure hedged

  45. Market approach • Local knowledge and presence: • experienced local teams in all countries/regions • In-house property management and development: • direct relations with tenants and markets • In-house market research:  • timing of acquisitions and sales supported by in-house market analyses

  46. Sustainability I • 1998: In-house development and letting of ‘XX-building’ (Delft, NL) • 2003: Formal introduction business principle: “focus on sustainable, innovative property products providing enhanced user value, lower life-cycle costs and reduced environment impact” • 2003: Procedure sustainable investment as internal guideline • 2006: First privately developed LEED Platinum office building (Mc Kinney) realized in Dallas, Texas • 2008: Internal sustainability manual compiled, defining objectives and plans of action • 2009: start carbon footprint evaluation; stimulation sustainability of suppliers; cooperation contract with construction companies; appointment of sustainability development manager

More Related