NEPI Rockcastle N.V · JSE:NRP

NEPI Rockcastle — New Europe Property Investments — H2 2013 Earnings Presentation

60 slides from NEPI Rockcastle's earnings presentation, December 2013

  1. Slide 1: Results presentation December 2013

    Results presentation December 2013 1 Introduction  A central and eastern European property development and investment company  Distribute cash dividends (or return of capital & share subscription) on a semi-annual basis  Invest in properties with long term multinational tenants with leases in Eur

  2. Slide 2: Financial performance and Highlights

    Financial performance Dec Dec Dec Dec Dec 2013 2012 2011 2010 2009 Distribution per share (€ cents) 26.79 23.29 20.25 17.61 15.77 Distribution per share (ZAR cents)* 380.64 263.13 205.97 168.78 171.79 Adjusted NAV per share (€) 3.70 2.88 2.43 2.22 1.97 Gearing** 22.5% 25.0% 32.0% 49.0% 46.0% Shares

  3. Slide 3: Operational highlights; Portfolio structure by gross rental

    Operational highlights Retail:  Increase in foot-fall  Vacancy down to 1.7%  Negligible arrears Office:  Increased supply in Floreasca  Strong demand in Timisoara  Vacancy down to 3.9%  Negligible arrears 5 Portfolio structure by gross rental Dec 2012 Dec 2013 5% 3% 49% 33% 64% 46% Retail Off

  4. Slide 4: Top 10 retail tenants and office tenants

    Top 10 retail tenants Auchan 6.0% Carrefour 5.2% Bricostore 3.2% Metro Cash & Carry 1.9% Cora 1.3% C&A 1.3% H&M 1.2% Altex 1.2% Deichmann 1.1% New Yorker 1.1% 0% 1% 2% 3% 4% 5% 6% 7% % of total monthly rent in Dec 2013 7 Top 10 office tenants Raiffeisen Bank 3.5% PricewaterhouseCoopers 3.2% Oracle 2

  5. Slide 5: Rent expiry profile; Debt repayment profile

    Rent expiry profile per sector Gross rentals (€ million) 70 60 Industrial Office Retail 50 40 30 20 10 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Tenant profile – gross rentals 64% 7% 29% Type A Type B Type C Weighted average duration of 4.8 years 9 Debt repayment profile Bank loans re

  6. Slide 6: Romania and Slovakia macro-economic

    Romania – macro-economic Key indicators 2013 2014 2015 2016 2017 Real GDP growth (%) 2.5 3.0 3.8 3.8 4.0 General gov. budget balance (% of GDP) (2.6) (2.4) (2.2) (2.4) (2.2) General gov. debt (% of GDP) 36.3 37.1 37.2 37.3 37.5 Unemployment (%) 4.8 4.3 3.8 3.4 2.9 Price inflation (%) (EU harmonised)

  7. Slide 7: Growth strategy; Comparative retail sales

    Growth strategy  Retail – regional dominance  Office – opportunistic development of A-grade offices in prime locations in cities with significant multi- national tenant presence  Increase in scale  Continued expansion beyond Romania 13 Comparative retail sales Aggregate retail sales 4 000 3 500

  8. Slide 8: Development pipeline

    Development pipeline 450 400 350 300 169 250 € million 200 Finalised 150 127 Controlled 122 Committed 100 Money spent 50 60 91 0 26 (46) -50 -100 Dec 2012 Dec 2013 Committed: projects currently under construction Controlled: projects where the land is controlled, but not yet under construction Note

  9. Slide 9: Completed acquisitions and developments

    Completed acquisitions and developments Completed during 2013  Aupark (Zilina)  City Park Constanta  Deva Shopping Centre  Severin Shopping Center  Shopping City Galati  Four Kaufland Value Extensions  The Lakeview Office Building (Bucharest)  Timisoara Building D 17 Aupark (Zilina, Slovakia

  10. Slide 10: Aupark (Zilina, Slovakia)

    Aupark (Zilina, Slovakia) Retail space Office space  85 000 residents 22,000 m² 1,700 m²  Seat of a region of 700,000 residents 99% let Fully let Major Tenants  Billa  C&A  Deichmann  H&M  New Yorker Catchment Population 10 minutes 90 000 20 minutes 180 000 30 minutes 380 000 19 Aupark (Zilin

  11. Slide 11: Aupark (Zilina, Slovakia)

    Aupark (Zilina, Slovakia) 21 Aupark (Zilina, Slovakia) 22 11

  12. Slide 12: City Park Mall (Constanta, Romania)

    City Park Mall (Constanta, Romania) 23 City Park Mall (Constanta, Romania) Major Tenants  350,000 residents  Bershka  Cora (Hypermarket)  GLA 29,200 m²  Domo  Occupancy 99.7%  KFC  Koton  Extension planned 15,800 m²  LC Waikiki  McDonald’s  Pull&Bear  Zara Catchment Population 15 minute

  13. Slide 13: Mamaia beach resort; City Park Mall

    Mamaia beach resort 25 City Park Mall (Constanta, Romania) 26 13

  14. Slide 14: City Park Mall (Constanta, Romania)

    City Park Mall (Constanta, Romania) 27 City Park Mall (Constanta, Romania) 28 14

  15. Slide 15: City Park Mall (Constanta, Romania)

    City Park Mall (Constanta, Romania) 29 City Park Mall (Constanta, Romania) 30 15

  16. Slide 16: City Park Mall (Constanta, Romania)

    City Park Mall (Constanta, Romania) 31 City Park Mall (Constanta, Romania) 32 16

  17. Slide 17: City Park Mall (Constanta, Romania)

    City Park Mall (Constanta, Romania) Lake level (-1) FUTURE EXTENSION 33 City Park Mall (Constanta, Romania) Lake level (0) FUTURE EXTENSION 34 17

  18. Slide 18: City Park Mall; Deva Shopping Centre

    City Park Mall (Constanta, Romania) Sky level FUTURE EXTENSION RECONFIGURED UNITS 35 Deva Shopping Centre (Deva, Romania) 36 18

  19. Slide 19: Deva Shopping Centre (Deva, Romania)

    Deva Shopping Centre (Deva, Romania) Major Tenants  56,650 residents  Metro  GLA 41,700 m²  Real (will become Auchan)  Praktiker DIY  Occupancy 100%  Domo  Extension planned 12,400 m²  Jysk  Takko  DM Catchment Population 15 minutes 75 000 30 minutes 177 000 45 minutes 277 000 Hunedoara C

  20. Slide 20: Deva Shopping Centre (Deva, Romania)

    Deva Shopping Centre (Deva, Romania) Possible Extension Land Plot 29,390m² 39 Deva Shopping Centre (Deva, Romania) 40 20

  21. Slide 21: Deva Shopping Centre (Deva, Romania)

    Deva Shopping Centre (Deva, Romania) 41 Deva Shopping Centre (Deva, Romania) 42 21

  22. Slide 22: Severin Shopping Center (Drobeta-Turnu Severin)

    Severin Shopping Center (Drobeta-Turnu Severin, Romania) 43 Severin Shopping Center (Drobeta-Turnu Severin, Romania) Major Tenants  86,475 residents  Carrefour  Existing GLA 16,574 m²  Altex  Deichmann  Occupancy 100%  Takko  Extension planned 9,500 m²  Lee Cooper Catchment Population 15 mi

  23. Slide 23: Severin Shopping Center (Drobeta-Turnu Severin)

    Severin Shopping Center (Drobeta-Turnu Severin, Romania) 45 Severin Shopping Center (Drobeta-Turnu Severin, Romania) 46 23

  24. Slide 24: Severin Shopping Center (Drobeta-Turnu Severin)

    Severin Shopping Center (Drobeta-Turnu Severin, Romania) 47 Severin Shopping Center (Drobeta-Turnu Severin, Romania) 48 24

  25. Slide 25: Shopping City Galati (Galati, Romania)

    Severin Shopping Center (Drobeta-Turnu Severin, Romania) 49 Shopping City Galati (Galati, Romania) 50 25

  26. Slide 26: Shopping City Galati (Galati, Romania)

    Shopping City Galati (Galati, Romania)  Braila – Galati Region is known Galati Shopping City Galati as “Lower Danube Metropolitan Area”  400,000 residents in the two cities Braila Braila & Galati Counties Promenada Mall 812,300 inhabitants 51 Shopping City Galati (Galati, Romania) 52 26

  27. Slide 27: Shopping City Galati (Galati, Romania)

    Shopping City Galati (Galati, Romania) Phase 1 53 Shopping City Galati (Galati, Romania) Phase 2 cinema 54 27

  28. Slide 28: Shopping City Galati (Galati, Romania)

    Shopping City Galati (Galati, Romania) 55 Shopping City Galati (Galati, Romania) 56 28

  29. Slide 29: Shopping City Galati (Galati, Romania)

    Shopping City Galati (Galati, Romania) 57 Shopping City Galati (Galati, Romania) 58 29

  30. Slide 30: Shopping City Galati (Galati, Romania)

    Shopping City Galati (Galati, Romania) 59 Shopping City Galati (Galati, Romania) 60 30

  31. Slide 31: Shopping City Galati (Galati, Romania)

    Shopping City Galati (Galati, Romania) 61 Shopping City Galati (Galati, Romania) 62 31

  32. Slide 32: Kaufland value extension (Alexandria, Romania)

    Kaufland value extension (Alexandria, Romania) 63 Kaufland value extension (Alexandria, Romania) Tenants  45,434 residents  Animax  GLA 2,027 m²  Deichmann  Domo  Occupancy 100%  Noriel  Takko Catchment Population 15 minutes 68,600 30 minutes 128,400 45 minutes 234,000 Teleorman County 360,1

  33. Slide 33: Kaufland value extension (Alexandria, Petrosani)

    Kaufland value extension (Alexandria, Romania) 65 Kaufland value extension (Petrosani, Romania) 66 33

  34. Slide 34: Kaufland value extension (Petrosani, Romania)

    Kaufland value extension (Petrosani, Romania) Tenants  45,434 residents  Altex  GLA 1,933 m²  Deichmann  DM  Occupancy 100%  Takko Catchment Population 15 minutes 91,000 30 minutes 103,000 45 minutes 128,000 Hunedoara County 396,000 inhabitants 67 Kaufland value extension (Petrosani, Romania)

  35. Slide 35: Kaufland value extension (Sfantu Gheorghe)

    Kaufland value extension (Sfantu Gheorghe, Romania) 69 Kaufland value extension (Sfantu Gheorghe, Romania) Tenants  56,000 residents  Altex  GLA 1,602 m²  Deichmann  Takko  Occupancy 100% Catchment Population 15 minutes 71,600 30 minutes 118,100 45 minutes 147,500 Covasna County 206,260 inhabi

  36. Slide 36: Kaufland value extension (Sfantu Gheorghe, Sighisoara)

    Kaufland value extension (Sfantu Gheorghe, Romania) 71 Kaufland value extension (Sighisoara, Romania) 72 36

  37. Slide 37: Kaufland value extension (Sighisoara, Romania)

    Kaufland value extension (Sighisoara, Romania) Tenants  28,120 residents  Altex  GLA 1,860 m²  Deichmann  DM  Occupancy 100%  Takko Catchment Population 15 minutes 53,600 30 minutes 85,300 45 minutes 178,600 Mures County 531,380 inhabitants 73 Kaufland value extension (Sighisoara, Romania) 74

  38. Slide 38: The Lakeview (Bucharest, Romania)

    The Lakeview (Bucharest, Romania) 75 The Lakeview (Bucharest, Romania) The Lakeview NEW BUSINESS DISTRICT OLD CBD 76 38

  39. Slide 39: The Lakeview; Development pipeline

    The Lakeview (Bucharest, Romania) 77 Development pipeline Under construction  MegaMall (Bucharest)  Shopping City Targu Jiu  Vulcan Retail Park (Bucharest)  Kaufland Value Extension (Vaslui)  City Business Centre Building E (Timisoara)  The Office (Cluj) 78 39

  40. Slide 40: Mega Mall (Bucharest, Romania)

    Mega Mall (Bucharest, Romania) 79 Mega Mall (Bucharest, Romania) Mega Mall 80 40

  41. Slide 41: Mega Mall (Bucharest, Romania)

    Mega Mall (Bucharest, Romania) 81 Mega Mall (Bucharest, Romania) 82 41

  42. Slide 42: Mega Mall (Bucharest, Romania)

    Mega Mall (Bucharest, Romania) 83 Mega Mall (Bucharest, Romania) 84 42

  43. Slide 43: Mega Mall (Bucharest, Romania)

    Mega Mall (Bucharest, Romania) 85 Mega Mall (Bucharest, Romania) 86 43

  44. Slide 44: Mega Mall (Bucharest, Romania)

    Mega Mall (Bucharest, Romania) 87 Mega Mall (Bucharest, Romania) 88 44

  45. Slide 45: Mega Mall (Bucharest, Romania)

    Mega Mall (Bucharest, Romania) 89 Mega Mall (Bucharest, Romania) 90 45

  46. Slide 46: Mega Mall; Targu-Jiu Shopping City

    Mega Mall (Bucharest, Romania) 91 Targu-Jiu Shopping City (Targu-Jiu, Romania) 92 46

  47. Slide 47: Targu-Jiu Shopping City (Targu-Jiu, Romania)

    Targu-Jiu Shopping City (Targu-Jiu, Romania)  78,550 residents  GLA – 26,799 m² Catchment Population 15 minutes 98 500 30 minutes 149 500 45 minutes 323 500 Gorj County 335,000 inhabitants 93 Targu-Jiu Shopping City (Targu-Jiu, Romania) 94 47

  48. Slide 48: Targu-Jiu Shopping City (Targu-Jiu, Romania)

    Targu-Jiu Shopping City (Targu-Jiu, Romania) 95 Targu-Jiu Shopping City (Targu-Jiu, Romania) New Layouts 96 48

  49. Slide 49: Targu-Jiu Shopping City (Targu-Jiu, Romania)

    Targu-Jiu Shopping City (Targu-Jiu, Romania) 97 Targu-Jiu Shopping City (Targu-Jiu, Romania) 98 49

  50. Slide 50: Targu-Jiu Shopping City; Vulcan (Bucharest)

    Targu-Jiu Shopping City (Targu-Jiu, Romania) 99 Vulcan (Bucharest, Romania) 100 50

  51. Slide 51: Vulcan (Bucharest, Romania)

    Vulcan (Bucharest, Romania) Vulcan 101 Vulcan (Bucharest, Romania) 102 51

  52. Slide 52: Vulcan (Bucharest, Romania)

    Vulcan (Bucharest, Romania) 103 Vulcan (Bucharest, Romania) 104 52

  53. Slide 53: Vulcan; Kaufland value extension (Vaslui)

    Vulcan (Bucharest, Romania) 105 Kaufland value extension (Vaslui, Romania) 106 53

  54. Slide 54: Kaufland value extension (Vaslui, Romania)

    Kaufland value extension (Vaslui, Romania) Tenants  55,407 residents  Altex  GLA 1,800 m²  Deichmann  Takko Catchment Population 15 minutes 80,600 30 minutes 112,600 45 minutes 221,900 Vaslui County 375,150 inhabitants 107 Kaufland value extension (Vaslui, Romania) 108 54

  55. Slide 55: City Business Centre (Timisoara, Romania)

    City Business Centre (Timisoara, Romania) 109 City Business Centre (Timisoara, Romania) 110 55

  56. Slide 56: City Business Centre (Timisoara, Romania)

    City Business Centre (Timisoara, Romania) 111 City Business Centre (Timisoara, Romania) 37,580 m² of Office Area, occupancy – 99.8%, major tenants: Alcatel, Deloitte, IBM, Microsoft, PricewaterhouseCoopers, Raiffeisen Bank, UniCredit Tiriac Bank, Wipro 112 56

  57. Slide 57: The Office (Cluj, Romania)

    The Office (Cluj, Romania) 113 The Office (Cluj, Romania) Railway Intl Station Airport The Office Business Centre Old City Centre 114 57

  58. Slide 58: The Office (Cluj, Romania)

    The Office (Cluj, Romania) 1st & 2nd FLOOR 3rd,4th,5th FLOOR PENTHOUSE 53,287m² of office area in 3 phases GROUND FLOOR 115 The Office (Cluj, Romania) 116 58

  59. Slide 59: The Office (Cluj); Prospects

    The Office (Cluj, Romania) 117 Prospects  Earnings guidance  Further retail acquisitions and developments  Continued increase in scale 118 59

  60. Slide 60: Questions & Answers

    NEW EUROPE PROPERTY INVESTMENTS PLC Questions & Answers 60

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