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Nextensa — Leasinvest Real Estate — Investor Day (December 2015)
31 slides from Nextensa's investor day presentation, Dec 4, 2015
Slide 1: Ackermans & van Haaren Investor's day: Presentation Leasinvest Real Estate
Ackermans & van Haaren Investor's day Presentation Leasinvest Real Estate 4 December 2015
Slide 2: Leasinvest Real Estate within AvH Group
LEASINVEST REAL ESTATE WITHIN AvH A H GROUP LRE PROFILE Fair value direct portfolio € 757 M Fair value indirect (incl. share Retail Estates) € 825 M Market capitalization € 445 M Shareholders Ackermans & van Haaren 30% AXA 29% F Free float fl t 41%
Slide 3: Mission statement
MISSION STATEMENT Public Regulated Real Estate Company (BE‐ REIT) Leasinvest L i t Real R l EEstate t t SCA (created ( t d in i 1999) invests in high‐quality and well‐situated retail, offices & logistics, in the Grand Duchy of Luxembourg, Luxembourg Belgium and Switzerland. Switzerland Leasinvest RE
Slide 4: Strategy: opportunity-driven
STRATEGY: OPPORTUNITY‐DRIVEN OPPORTUNITY DRIVEN Our strategy evolved from focus on mainly offices in Belgium towards a current focus on mainly retail and offices in the Grand duchy of Luxembourg and Belgium Belgium. RETAIL 6% LOGISTICS 25% OFFICES 1999 69% BELGIUM 100% SWITZERLAN LOGISTICS D 18% 6%
Slide 5: Leasinvest Real Estate strategy
LEASINVEST REAL ESTATE STRATEGY INVESTMENT STRATEGY • stable economic countries: Luxembourg, Belgium & Switzerland • focus on retail sector (retail parks/ medium‐sized shopping centers) • opportunity‐driven for well‐located offices in/near CBD • divestment of non‐strategic buildings • shrewd acquisi
Slide 6: Milestones in LRE's evolution
MILESTONES IN LRE'S EVOLUTION 1999‐2005 2006 2008 2012‐2013 2014 FOCUS OFFICES LEASINVEST METRO KNAUF SHOPPING RETAIL BELGIUM IMMO LUX LUX CENTERS LUX CH DIVESTMENT OF NON‐STRATEGIC BUILDINGS, MAINLY OFFICES 800 100% 700 90% 80% 600 70% 500 60% 400 46% 50% 300 40% 36% 30% 200 18% 20% 100 10% 0 0% 20
Slide 7: Luxembourg
LUXEMBOURG RETAIL 59% & OFFICES 37% 500 100% 450 90% 400 80% 350 70% 300 59% 60% 250 50% 200 40% 37% 150 30% 100 20% 50 10% 4% 0 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q32015 LUXEMBOURG (FV € M) OFFICES RETAIL LOGISTICS
Slide 8: Belgium
BELGIUM OFFICES 40% & LOGISTICS 47% 500 100% 450 90% 400 80% 350 70% 300 60% 250 50% 47% 200 40% 40% 150 30% 100 20% 13% 50 10% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q32015 BELGIUM (FV € M) OFFICES RETAIL LOGISTICS
Slide 9: Key buildings
KEY BUILDINGS L Luxembourg b Belgium l Switzerland l d Knauf shopping centers (North Luxembourg) Retail park (Strassen) Offices Monnet (Kirchberg) Offices Montimmo – Luxembourg CBD Offices Royal20 – Luxembourg CBD CFM ‐ Cloche d'Or Luxembourg Offices Montoyer ‐ Brussels CBD Offices Square de Meeûs ‐
Slide 10: Current & future realizations
CURRENT & FUTURE REALIZATIONS • sales agreement ('vente à • building vacant: Q2 2015 terme’) for Royal20 mid 2016 • building permit requested for € 62.5 M • office project of 5,936 m2 • sale is opportunity‐driven • reception by 2017 • 100% pre‐let pre let to China • objective = BREAAM ‘excellent’ ex
Slide 11: Creating capital gains
CREATING CAPITAL GAINS (30/06/2015) Luxembourg was key in realizing capital gains and more than compensated the capital losses on the Belgian portfolio 400.000 339.312 300.000 264.487 200.000 130.444 146.661 90.656 100.000 ‐223.272 ‐27.275 ‐42.389 0 Shareholders' equity 30/0 Shareholders' equity 30/
Slide 12: Creating shareholder value: Royal 20
CREATING SHAREHOLDER VALUE: VALUE ROYAL 20 PURCHASE EXISTING ACTUAL SHELL STRUCTURE NEW OFFICE BUILDING BUILDING ON & PRE‐LEASED ROYAL20 OUTSTANDING LOCATION
Slide 13: Capital gains Luxembourg
CAPITAL GAINS LUXEMBOURG SUCCESSFUL REDEVELOPMENTS GENERATE IMPORTANT CAPITAL GAINS UNREALIZED CAPITAL GAIN € 14 M REALIZED CAPITAL GAIN € 15.2 M UNREALIZED CAP. GAIN € 2 M UNREALIZED CAPITAL GAIN € 1.2 M TO BE REALIZED CAPITAL GAIN € 23 M
Slide 14: Capital recycling
CAPITAL RECYCLING € 223 M DIVESTMENTS VERSUS € 380 M INVESTMENTS Timely divestments of non‐strategic buildings Shrewd acquisitions, cornerstones of our proactive portfolio management 140 70% 127 120 61% 60% 99 100 50% 80 40% 70 38% 67 60 30% 40 38 40 20% 29 28 25 15% 22 20 13 16 7% 5% 10% 12 5% 5 1%
Slide 15: A source of recurring income
A SOURCE OF RECURRING INCOME 60.000 50.000 +295% 40.000 +150% 30.000 +150% 20.000 10.000 0 1‐1‐2000 1‐1‐2001 1‐1‐2002 1‐1‐2003 1‐1‐2004 1‐1‐2005 1‐1‐2006 1‐1‐2007 1‐1‐2008 1‐1‐2009 1‐1‐2010 1‐1‐2011 1‐1‐2012 1‐1‐2013 1‐1‐2014 RENTAL INCOME (€ 1,000) NET CURRENT RESULT (€ 1,000) NET RESULT (€ 1,000)
Slide 16: Occupancy rate & rental duration
OCCUPANCY RATE & RENTAL DURATION • the focus of our commercial efforts is a high • a major element of our commercial strategy is occupancy rate to extend the duration of the leases • the occupancy rate in Luxembourg has been • thanks to a proactive approach contracts are continuously high and the Sw
Slide 17: Stable rental yield
STABLE RENTAL YIELD GEOGRAPHICAL & BY ASSET CLASSES 9,00% 8,50% 8,50% 8,00% 8,00% 7,50% 7,50% 7,00% 7 00% 7,00% 7,23% 7,23% 6,50% 6,50% 6,00% 6,00% 5,50% 5,50% 5,00% 5,00% 4,50% 4,50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2
Slide 18: Financial strategy
FINANCIAL STRATEGY • funding diversification: 56% banks (9 banks), banks) 18% commercial paper & 26% bonds • funding cost (excl. hedging premiums) slightly reduced to 3.50% (2014: 3.63%) due to extension of some existing hedging contracts • total committed credit lines (incl. bonds): € 528.8 M (2014
Slide 19: Hedging strategy
HEDGING STRATEGY • hedging strategy is based on 75% (first 5 years) & 50% (following 4/5 years) • debt financing approx. 84% hedged of which 75% fixed through fixed rate debt (34%), fixed interest rate swaps (IRS) (33%), floating capped (9%) and CCS (8%) • no interest rate floors • duration at 6.55
Slide 20: Key financials Q3 2015
KEY FINANCIALS Q3 2015 30/09/2015 30/09/2014 Rental income (€ M) 37.6 37.6 Net result (€ M) 25.4 21.3 Net current result ((€ M)) 18.5 20.8 Occupancy rate 97.31% 95.92% Average duration leases (years) 5 19 5.19 4 88 4.88 Debt ratio 53.29% 53.18% F di costt Funding 3 53% 3.53% 3 66% 3.66% Average dura
Slide 21: Steady dividend growth over the years
STEADY DIVIDEND GROWTH OVER THE YEARS • gross dividend increased to € 4.55 over 2014 (2013: € 4.50) • gross dividend di id d yield i ld off 4.96% 4 96% (31/12/2014) • consolidated pay‐out ratio 2014: 86% 5,0 14% 4,5 12% 4,0 3,5 10% 3,0 8% 2,5 6% 2,0 1,5 4% 10 1,0 2% 0,5 0,0 0% 000 001 002 003 004 00
Slide 22: Share price at premium to NAV
SHARE PRICE AT PREMIUM TO NAV 110 100 90 80 70 60 50 40 11‐2002 11‐2003 11‐2004 11‐2005 11‐2006 11‐2007 11‐2008 11‐2009 11‐2010 11‐2011 11‐2012 11‐2013 11‐2014 11‐2015 Share price NAV (investment value)
Slide 23: Premium/discount evolution
PREMIUM/DISCOUNT EVOLUTION 50% 40% 30% 20% 10% 0% ‐10% ‐20% ‐30% ‐40% ‐50% 11‐2002 11‐2003 11‐2004 11‐2005 11‐2006 11‐2007 11‐2008 11‐2009 11‐2010 11‐2011 11‐2012 11‐2013 11‐2014 11‐2015
Slide 24: LRE share vs EPRA indices
80 120 160 200 240 280 320 2‐07‐2001 2‐10‐2001 2‐01‐2002 2‐04‐2002 2‐07‐2002 2‐10‐2002 2‐01‐2003 2‐04‐2003 2‐07‐2003 2‐10‐2003 2‐01‐2004 2‐04‐2004 2‐07‐2004 2‐10‐2004 2‐01‐2005 2‐04‐2005 2‐07‐2005 2‐10‐2005 2‐01‐2006 share price LRE 2‐04‐2006 2‐07‐2006 2‐10‐2006 2‐01‐2007 2‐04‐2007 2‐07‐2007 2‐10‐20
Slide 25: GPR share performance
Leasinvest REAL ESTATE GPR SHARE PERFORMANCE ( property research Leasinvest Real Estate Performance Report - October 31, 2015 Performance Companies 1 month 3month 6month Y-T-D 1 year 3 year 5 year| Inception Volatility Sharpe Comparison Leasinvest Real Estate 8.51% 1.08% -1.09% 0.96% 5.11% 15.46% 12
Slide 26: Outlook financial year 2015
OUTLOOK FINANCIAL YEAR 2015 Except for extraordinary circumstances and new investments, investments the company expects to realize a slightly lower net result and a slightly l lower nett currentt result lt in i 2015 than th ini 2014 due d tot the th influence i fl on the evolution of the rents of th
Slide 27: Analyst recommendations
ANALYST RECOMMENDATIONS FINANCIAL CALENDAR 2015/2016 Bank Analyst Recommendation Target Date price Degroof Petercam Herman van der Loos Add € 93.00 17/11/2015 KBC Securities Koen Overlaet-Michiels Hold € 94.00 17/11/2015 ING Securities Jaap Kuin Hold € 82.00 27/08/2015 Financial calendar 2015/2016 Y
Slide 28: Investor relations contacts
INVESTOR RELATIONS CONTACTS Jean‐Louis Appelmans pp ‐ CEO Michel Van Geyte y ‐ COO Piet Vervinckt ‐ CFO Jean‐Louis Appelmans is CEO Michel Van Geyte joined Piet Vervinckt joined of Leasinvest Real Estate Leasinvest Real Estate in Leasinvest Real Estate in (since 1999) and of August 2004. He is curre
Slide 29: Disclaimer
DISCLAIMER This presentation contains forward‐looking forward looking statements. statements Such forward‐looking forward looking statements involve unknown risks, risks uncertainties and other factors which may cause the actual results, financial conditions, performance or achievements of the compa
Slide 30: BE REIT peers
BE REIT PEERS BE‐REIT Portfolio Q3 2015 (Fair value in € M) Asset class focus offices ‐ healthcare ‐ Cofinimmo 3283 distribution networks Befimmo 2378 offices WDP 1845 warehouses Aedifica 1036 senior housingg ‐ residential Retail Estates 973 out‐of‐town retail Leasinvest Real Estate 825 retail ‐ off
Slide 31: BE REIT main characteristics
BE REIT MAIN CHARACTERISTICS BE‐REIT: • stock exchange listing • activity limited to real estate investment • risk diversification: no more than 20% of the consolidated assets may be invested in a single property • consolidated & statutory debt ratios of BE‐REIT limited to 65% of the consolidated or
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