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Blackstone — Blackstone Property Partners Europe Holdings — Debt Investor Presentation (March 2021)
39 slides from Blackstone's debt investor presentation, March 2021
Slide 1: Blackstone Property Partners Europe Holdings Investor Presentation
Blackstone Property Partners Europe Holdings Investor Presentation March 2021
Slide 2: Important Disclosure Information
Important Disclosure Information This document has been prepared by Blackstone Property Partners Europe Holdings S.à r.l. (“BPPEH”, the “Issuer”) solely for informational purposes. For the purposes of this notice, the presentation shall mean and include any slides that precede this notice, the oral
Slide 3: Important Disclosure Information (Cont'd)
Important Disclosure Information (Cont’d) Estimates/Targets. Any estimates, targets, forecasts, or similar predictions or returns set forth herein are based on assumptions and assessments made by the Issuer that it considers reasonable under the circumstances as of the date hereof. They are necessar
Slide 4: BPPEH Highlights
BPPEH Highlights
Slide 5: Overview of BPPEH
Overview of BPPEH BPPEH invests in high-quality, well-located Core+ real estate assets across Europe Overview & Strategy ▪ Focused on large, high-quality, substantially stabilised assets in major European markets and key gateway cities ─ Primary sectors include logistics, residential and office ─ Lo
Slide 6: Selected BPPEH Assets
Selected BPPEH Assets Note: See "Important Disclosure Information" including "Logos". BPPEH 6
Slide 7: 2020 Key Updates
2020 Key Updates Portfolio Capital Structure ▪ Further portfolio growth and diversification ▪ Prudent capital structure ─ €7.8B GAV (€7.9B pro forma for acquisitions subsequent to 31 December 2020), up from €5.4B in December 2019 ─ 47% net LTV ─ 701 high-quality, well-located assets across 13 countr
Slide 8: Responsible Investing: BPPEH ESG Initiatives
Responsible Investing: BPPEH ESG Initiatives We have accelerated our ESG initiatives over the past year and look forward to carrying this momentum into 2021 2020 by Numbers Key Initiatives Published Green Financing 71% 77% Framework, which received a positive Second-Party Opinion Green-Certified A o
Slide 9: COVID-19 Impact
COVID-19 Impact BPPEH has proven resilient despite the global challenges caused by COVID-19 Q4 Rent Collections vs. Sector % of GAV Typical Rates Commentary ▪ Has proven resilient to date ▪ Portfolio expected to benefit from the acceleration in e-commerce Logistics 60% (2) p.p. ▪ Focused on working
Slide 10: Portfolio Overview
Portfolio Overview
Slide 11: BPPEH Portfolio Overview
BPPEH Portfolio Overview Large, diversified portfolio focused on logistics, residential and office assets in Europe’s key markets 701 €7.8B 94% 4-Yr Assets GAV Occupancy WALL(1) Sector Allocation Geographic Allocation Poland Other(2) 3% 1% Spain Office 5% 16% Italy 5% UK 7% Germany 35% Netherlands R
Slide 12: Portfolio Evolution
Portfolio Evolution Increased scale and diversification GAV by Sector (€B) GAV by Country (€B) 7.8 7.9 7.9 7.8 6.2 6.2 5.4 5.4 4.4 4.0 4.4 4.0 (1) (1) 31-Dec-18 30-Jun-19 31-Dec-19 30-Jun-20 31-Dec-20 Pro Forma 31-Dec-18 30-Jun-19 31-Dec-19 30-Jun-20 31-Dec-20 Pro Forma Logistics Residential Office
Slide 13: Logistics Portfolio
1 Logistics Portfolio High-quality logistics portfolio comprising 161 properties across 13 countries Key Metrics Geographic Allocation Italy Other(1) 1% Netherlands 3% 4% €4.7B 4.3M Spain 4% France Poland 24% GAV Square Metres 5% UK 12% 95% 3.9-Yr Germany 24% Nordics(1) 22% Occupancy WALL Note: Geog
Slide 14: Logistics Market Overview
1 Logistics Market Overview Robust fundamentals across BPPEH’s logistics markets Take-Up Continued to Outpace Completions(1) 30 Million sqm 24.3 24.4 25 22.9 22.4 21.0 20 17.4 16.0 16.2 15.1 15 13.1 13.4 13.5 13.4 9.6 10 7.8 7.8 5.6 5.6 5 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Completions Ta
Slide 15: Logistics Market Overview: E-Commerce
1 Logistics Market Overview Accelerating online sales penetration across Europe, including in France, Germany and the UK E-Commerce Penetration E-Commerce Sales % of Total Sales €B 30% 13.9 28% 14.0 13.4 +42% +60% 25% 12.0 YoY YoY +26% 10.0 9.7 20% 19% 10.0 YoY 17% 8.4 16% 7.9 8.0 15% 13% 13% 6.0 10
Slide 16: Residential Portfolio
2 Residential Portfolio Prime residential portfolio concentrated in Berlin and Amsterdam Key Metrics Geographic Allocation Utrecht Rotterdam 1% 3% Other Germany(2) 6% €1.9B 6.3K GAV Residential Units Berlin 52% Amsterdam 38% 84% 530 Occupancy(1) Properties Note: Geographic allocation based on GAV. T
Slide 17: Residential Market Overview
2 Residential Market Overview Strong demographic trends in Amsterdam and Berlin driving underlying rental growth 5-yr Population CAGR(1) Rental Growth € psm 3% Amsterdam 1.5% Rent CAGR 26 (’16-’20) 24.2 24 1.1% 1.1% 22 1.0% 8% Berlin 1.0% 1.0% Rent CAGR (’16-’20) 20 19.7 0.7% 18 16 0.5% 0.3% 14 0.2%
Slide 18: Office Portfolio
3 Office Portfolio Ten high-quality office assets located in dynamic, innovation-focused cities across Europe Key Metrics Geographic Allocation Rome €1.2B 169K 10% Berlin 22% Milan GAV Square Metres 11% Barcelona 19% Paris 20% 95% 3.9-Yr Occupancy WALL Munich 19% Note: Geographic allocation based on
Slide 19: Office Market Overview
3 Office Market Overview Vacancy rates and rental growth impacted by COVID-19 but remain attractive relative to historical levels Vacancy Rate Rental Growth Prime rents, indexed to 100 12% 180 10% 160 8% 140 6% 120 4% 100 2% - 80 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016
Slide 20: Capital Structure Summary
Capital Structure Summary
Slide 21: Capital Structure
Capital Structure Robust capital structure consisting primarily of unsecured notes Key Metrics Capital Structure Summary Interest WAM(2) €M Rate(1) (Years) 47% BBB Unsecured Notes Acquisition Facilities €3,450 332 1.5% 1.4% 4.5 3.0 (stable outlook) Net LTV S&P Credit Rating Mortgage Loan(3) 145 2.6%
Slide 22: Debt Summary
Debt Summary Strong debt profile consisting primarily of fixed rate unsecured debt Debt by Type Fixed vs. Floating Secured vs. Unsecured Mortgage Loan RCF Secured Floating 4% 1% 4% Acquisition 9% Facilities 8% Unsecured Fixed Notes 91% Unsecured 87% 96% Note: There can be no assurance that the Issue
Slide 23: Debt Maturity Profile
Debt Maturity Profile Staggered maturity profile with no debt maturities until July 2022 Interest 1.4% 0.8% 1.9% 2.1% 1.3% 2.6% 1.8% Rate(1) €M 800 €720 700 €680 €600 €612 €600 €600 600 500 400 300 200 €145 100 – – – 2021 2022 2023 2024 2025 2026 2027 2028 2029 Unsecured Notes Acquisition Facilities
Slide 24: Credit Facilities
Credit Facilities RCF and acquisition facilities provide operational flexibility between bond issuances BPPEH BPPEH Revolving Credit Facility Acquisition Facilities Amount €600M €1.8B Pricing(1) E + 1.00% E + 1.40%(2) Maturity 5 years 3 years Security / Collateral Unsecured Unsecured Committed / Unc
Slide 25: Blackstone Management Platform
Blackstone Management Platform
Slide 26: Blackstone Management Platform
Blackstone Management Platform Blackstone is a leading asset manager globally and has a €92B European real estate portfolio Leading Global Asset Manager Global Integrated Platform Ensures Maximum Experience and Knowledge Transfer ▪ 30+ year investment record ▪ A+ credit ratings(1) 129 602 Profession
Slide 27: Blackstone European Real Estate Portfolio
Blackstone European Real Estate Portfolio Premier European real estate platform provides proprietary insight across asset classes Logistics 370M Created one of the largest owned European Square Feet logistics portfolios Office 49M One of the largest office landlords in Europe Square Feet Residential
Slide 28: Active Asset Management
Active Asset Management Focus on value creation through active asset management Focus Areas Dedicated Team With Proven Track Record Lease Up or Capital Structure 43 4,200+ Re-leasing Optimisation Asset Management FTEs within Professionals in Portfolio Europe Companies Creation of Physical Additional
Slide 29: Beyond Returns: Enhancing Value Through ESG
Beyond Returns: Enhancing Value Through ESG Building a best-in-class global Real Estate ESG program Dedicated & Focused Resources Data Driven & Goal Oriented Proactive Engagement ▪ Hired Global Head of RE ESG; expanding RE ESG ▪ Set 15% carbon emission reduction target across ▪ Require green clauses
Slide 30: Key Highlights
Key Highlights
Slide 31: Key Highlights
Key Highlights 1 Large, High-Quality, Diversified Portfolio ▪ High-quality €7.8B portfolio concentrated in the European logistics, residential and office sectors ─ €7.9B pro forma for acquisitions subsequent to 31 December 2020 ▪ Well-located assets in markets with strong fundamentals (72% in German
Slide 32: Appendix – Supplemental Materials
Appendix – Supplemental Materials
Slide 33: BPPEH Structure
BPPEH Structure Wholly owned by BPPE, a perpetual life investment vehicle ▪ Open-ended investment vehicle Simplified Group Structure ▪ Quarterly closings expected, providing additional growth capital Limited Partners (“L.P.”) ▪ Near-permanent capital G.P. / Manager BPPE Overview ─ No legal obligatio
Slide 34: Key Metrics
Key Metrics Total/ Logistics Residential Office Weighted Avg. Number of Assets # 161 530 10 701 GLA kSQM 4,313 464 169 4,946 GAV €M 4,687 1,864 1,235 7,787 Occupancy Rate % 95% 84%(1) 95% 94% WALL Years 3.9 n/a 3.9 3.9(2) NOI Yield(3) % 4.5% 2.2% 3.2% 3.8% : Note: All BPPEH metrics are calculated at
Slide 35: Key Metrics by Sector
Key Metrics by Sector Key Metrics 31-Dec-20 31-Dec-19 LfL Change(1) Logistics GAV (€m) 4,687 2,752 +7.8% GLA ('000s) 4,313 2,958 – Economic Occupancy (%) 95% 94% +146 bps Physical Occupancy (%) 95% 94% +146 bps WALL (years) 3.9 4.2 (0.5) years Passing Rent (€/sqm/year) 55 50 +0.8% Residential GAV (€
Slide 36: Recent Acquisition: UK Logistics Park
Recent Acquisition: UK Logistics Park During Q1 2021, BPPEH acquired a Grade-A logistics park next to Heathrow Airport in the UK for £119 million Investment Overview ▪ 317k square foot logistics park comprising four units, located just south of Heathrow Airport ▪ High-quality asset with Grade-A spec
Slide 37: Summary Consolidated Balance Sheet
Summary Consolidated Balance Sheet Assets as of 31-Dec-2020 Capital, Reserves and Liabilities as of 31-Dec-2020 €M €M Fixed assets 6,920.1 Capital and reserves 1,577.6 Tangible fixed assets 6,912.6 Land and buildings 6,912.6 Provisions 8.3 Intangible assets 7.5 Creditors 5,966.0 Unsecured notes 3,47
Slide 38: Summary Consolidated Profit & Loss Account
Summary Consolidated Profit & Loss Account For the year ended 31-Dec-2020 €M Net turnover 249.6 Other operating income 57.0 Other external expenses (24.8) Value adjustments (132.6) Other operating expenses (84.6) Other interest receivable and similar income 6.1 Other interest and similar income 4.5
Slide 39: Definitions
Definitions Term Definition NOI annualised for investments acquired during the period, adjusted to exclude annualised rent abatements and non-recurring items and Adjusted NOI include rent top-ups provided by sellers The Blackstone Group Inc. or, as the context may require, one or more funds, managed
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