Wereldhave N.v. · EURONEXT:WHA
Wereldhave — H1 2012 Earnings Presentation
38 slides from Wereldhave's earnings presentation, Aug 2, 2012
Slide 1: Investor presentation H1 2012 results
Investor presentation H1 2012 results
Slide 2: Introduction
Introduction • Events up until press release of 23 July • Supervisory Board • Departure of Hans Pars 2
Slide 3: Key results negative ...
Key results negative ... • Direct result p/s: € 2.07 (-17.5% yoy) • Revaluation portfolio: -4.5% (€ -173m) • Total result p/s: € -5.93 • NAV p/s: € 63.45 (-10.0% yoy) • Occupancy 88.3% (from 91.1% in Q1) • LTV 47% (from 41% in Q1) Dissapointing direct result reflect lowering NRI due to sale of asset
Slide 4: Portfolio valuation € -173.1m
Portfolio valuation € -173.1m United States United Kingdom The Netherlands Belgium France Spain Finland 40,0 rest of UK 20,0 portfolio -130.8 1.9 -4.1 2.1 2.6 -6.9 1.1 0,0 UK Shopping -20,0 Eilan Centers -44.8 -39.0 -40,0 -60,0 San Diego -34.8 -80,0 -100,0 rest of US portfolio -51.2 -120,0 -140,0 4
Slide 5: Valuation result standing portfolio -4.5%
Valuation result standing portfolio -4.5% Yield effect - Market Rent & Other effects TOTAL -3.09% -1.41% UNITED STATES -10.86% -2.28% GREAT BRITAIN -4.31% -4.91% FINLAND 0.20% 0.04% SPAIN -4.98% FRANCE 1.43% BELGIUM -1.14% 1.56% THE NETHERLANDS -0.54% -0.18% -15,0% -12,0% -9,0% -6,0% -3,0% 0,0% 3,0%
Slide 6: Forecast 2012
Forecast 2012 DIR p/s Q1 2012 1.10 Q2 2012 0.97 H1 2012 2.07 (incl. sale Mint, negative contribution Eilan, San Diego/Dunkirk, etc.) Proxy H2 2012 (2xQ2) 1.94 4.01 Proxy impact in H2 from sale non-core assets US & < -0.21 Europe, debt reduction and other Forecast 2012 At least 3.80 Dividend brought
Slide 7: Measures
Measures • Dirk Anbeek CEO • Further announcements on composition management board will follow asap • Exit country directors US and UK • Adjusted exit-strategy US • No new acquisitions in the near term • LTV to be lowered to 40% (within 35-45% range) • After completing commitments in 2014, capitalis
Slide 8: But also operational positives to report...
But also operational positives to report... • Like-for-like NRI +1.6% (core portfolio +3.1%) • First phase Itis-redevelopment completed; YoC to 7.5% (was 6.0-6.5%) • Heads of terms agreed on letting of Joinville-project (17,670 sqm) in Paris • Turnaround shopping centre Planetocio progressing; new a
Slide 9: Itis redevelopment (Eurokangas store: before)
Itis redevelopment (Eurokangas store: before) 9
Slide 10: Itis redevelopment (after)
Itis redevelopment (after) 10
Slide 11: Project Joinville-le-pont, July 2012
Project Joinville-le-pont, July 2012 11
Slide 12: Turnaround Planetocio progressing
Turnaround Planetocio progressing 12
Slide 13: Country update
Country update • Finland: first phase Itis completed; renewals at significant higher rents, total investment volume lowered to € 80m, YoC to 7.5% • Netherlands: retail climate getting more subdued; leisure (casino) added to shopping centre Kronenburg • France: heads of terms pre-let Joinville-le-pon
Slide 14: Operational results
WERELDHAVE Operational results (@ Wereldhave. Value for tomorrow.
Slide 15: DIR p/s bridge (€ x1)
DIR p/s bridge (€ x1) 2,60 2.51 -0.27 2,40 0.08 -0.32 2,20 0.07 2.07 2,00 June 2011 Standing Acquisition Sales Currency June 2012 15
Slide 16: NRI bridge (€ m)
NRI bridge (€ m) 95.0 90.0 6.2 - 10.4 85.0 81.2 80.0 1.1 - 1.4 76.7 75.0 70.0 NRI H1 2011 Acquisitions Disposals Like for like Currency/Other NRI H1 2012 16
Slide 17: L-f-l NRI H1 2012
L-f-l NRI H1 2012 Core portfolio Other Total Belgium 4.9% 25.6% 11.0% Finland 5.5% 5.5% The Netherlands 4.0% -4.3% 2.5% United Kingdom -12.9% 7.5% -2.7%* Total 3.4% France 0.6% 11.9% 2.1% Spain 4.3% -1.5% 2.2% Total 1.8% U.S.A. -9.4% -9.4%* Total portfolio 3.1% -1.2% 1.6% * in local currency 17
Slide 18: NAV impacted by valuations
NAV impacted by valuations 76 73.44 -4.70 74 72 2.07 -8.02 70 68 66 0.69 -0.03 63.45 64 62 60 Dec 2011 Dividend 2011 Direct result Valuation result Currency Other June 2012 portfolio June 2012 Dec 2011 Dec 2010 NAV per share (IFRS) 63.45 73.44 75.12 NAV per share (EPRA) 68.11 76.40 80.29 NNNAV per s
Slide 19: Debt profile
WERELDHAVE Debt profile (@ Wereldhave. Value for tomorrow.
Slide 20: LTV to be lowered to 40% by asset sales
LTV to be lowered to 40% by asset sales • Interest bearing debt: € 1,431m (2011: € 1,289m)* • Fixed/floating: 44%/56% (Dec 11: 44%/56%)* • Average cost: 2.8% (Dec 11: 3.0%)** • LTV: 47% (Dec 2011: 41%) • ICR: 4.6x (Dec 2011: 5.4x) *On nominal basis. **On IFRS basis: 2.9% (Dec 2011: 3.2%) 20
Slide 21: Well diversified debt profile June 2012
Well diversified debt profile June 2012 Type of debt Maturity profile total 1,431m* 600 556 mortgages 3% 500 US PP 20% 400 303 300 279 bank loans (unsecured) convertible 200 45% bond 09-14 16% 72 84 100 50 51 62 7 30 26 convertible 17 bond 10-15 0 16% 2012 2013 2014 2015 2016 2017 2018 2019 2020 202
Slide 22: Outlook 2012
Outlook 2012 • Direct result p/s at least € 3.80 and dividend at € 3.20-3.40 p/s • Cost-cutting program prepared in Q3 • Action plan UK shopping centres introduced in Q3, UK strategy evaluated end 2013 • Adjusted exit-strategy US; continuation sale non-core assets in Europe • Proceeds used to lower
Slide 23: Development pipeline
WERELDHAVE Development pipeline (@ Wereldhave. Value for tomorrow.
Slide 24: Committed development pipeline
Committed development pipeline Project Location Total Capex sofar Expected net Estimated Remarks investment yield completion Richmond UK € 27m € 20m* 6.25-6.75% 2012 50% pre-let Ghent Belgium € 15m € 2m 6.75-7.0% 2013 Mixed-use; 50% retail Joinville-le-Pont France € 71m € 26m 7.5-8.0% 2013 LOI with
Slide 25: Uncommitted development pipeline
Uncommitted development pipeline Project Location Total Capex Expected net Estimated Remarks investment sofar yield completion Tournai I Belgium € 15m € 4m 7.0-7.25% 2014 Building permit has been (Retail park) requested in Q2 Genk (100%) Belgium € 84m € 31m 6.75-7.25% 2014 Took full ownership in Apr
Slide 26: Appendix: result & balance sheet tables
Appendix: result & balance sheet tables
Slide 27: Total result (€ m)
Total result (€ m) H1 2012 H1 2011 yoy Direct result 49.0 57.4 -14.6% Indirect result -172.8 -4.8 Profit -123.8 52.6 Minority interest 4.8 4.0 20.0% Profit for shareholders -128.6 48.6 27
Slide 28: Direct result (€ m)
Direct result (€ m) H1 2012 H1 2011 yoy Gross rental income 103.1 103.9 -0.8% Operational costs -26.4 -22.7* 16.3% Net rental income 76.7 81.2* -5.5% General costs -9.9 -8.2 20.7% Other 0.9 1.2 -25.0% Net financial costs -17.9 -16.0* 11.9% Taxes -0.8 -0.8 Direct result 49.0 57.4 -14.6% Minority inte
Slide 29: Indirect result (€ m)
Indirect result (€ m) H1 2012 H1 2011 Revaluation -173.8 -6.2 Results on sales 2.3 2.6 Deferred tax 5.2 -2.6 Net financial costs -2.0 -2.4 Other -4.5 3.8 Indirect result -172.8 -4.8 Minority interest 0.7 0.5 Shareholders -173.5 -5.3 29
Slide 30: Net rental income (€ m)
Net rental income (€ m) H1 2012 % total yoy l-f-l Total 76.7 100% -5.5% 1.6% Belgium 14.4 18.8% 21.6% 11.0% Finland 12.2 15.9% -14.0% 5.5% France 5.4 7.0% -5.0% 2.1% The Netherlands 17.8 23.2% -11.8% 2.5% Spain 3.7 4.8% 2.0% 2.2% United Kingdom 11.8 15.4% 21.3% -2.7%* U.S.A. 11.4 14.9% -28.2% -9.4%*
Slide 31: Occupancy (EPRA)
Occupancy (EPRA) Retail Office Other Total Total Jun 2012 Dec 2011 Belgium 99.4% 83.2% - 94.2% 93.1% Finland 98.5% - - 98.5% 96.5% France 94.2% 99.0% - 98.4% 98.1% The Netherlands 97.3% 91.5% 88.9% 96.3% 95.6% Spain 62.4% 88.3% 75.4% 78.4% 76.9% United Kingdom 97.6% 97.5% 100% 97.6% 99.1% U.S.A. 56.
Slide 32: Lease expiry (rent as % of contracted rent as per June 30)
Lease expiry (rent as % of contracted rent as per June 30) 18.0% 16.0% 0.9% 0.4% 0.4% 14.0% 2.5% 12.0% 5.6% 6.2% 10.0% 0.5% 3.2% 1.0% 8.0% 0.1% 0.2% 6.0% 12.6% 4.6% 4.1% 1.4% 0.1% 9.4% 9.0% 4.0% 7.4% 6.8% 2.5% 2.7% 1.8% 5.1% 2.0% 3.5% 3.4% 2.0% 0.1% 1.6% 0.0% 0.9% 2012 2013 2014 2015 2016 2017 2018
Slide 33: EPRA lease data
EPRA lease data Average lease Contract rent expiring in: length to break to expiry 2012 2013 2014-2016 (yr) (yr) (x € 1,000) Belgium 2.6 6.1 3,859 8,695 17,323 Finland 3.5 3.5 6,232 3,267 5,772 France 5.5 6.4 9 1,428 1,950 The Netherlands 2.8 3.2 1,835 6,495 19,315 Spain 2.5 4.2 2,420 2,524 3,145 Un
Slide 34: Financial cost (€ m)
Financial cost (€ m) H1 2012 H1 2011 yoy direct indirect direct indirect direct indirect Interest expenses -19.7 -16.9 16.6% Amortised costs of loans -1.2 -1.2 Other non-cash costs -2.0 -2.4 -16.7% Interest income 0.2 0.2 Capitalized interest 2.8 1.9 47.4% Net Financial Costs -17.9 -2.0 -16.0 -2.4 1
Slide 35: Interest rate & currency sensitivity June 2012
Interest rate & currency sensitivity June 2012 • Floating rate loans 56% of debt • Hedge on investments (end of (FY11: 56%)* period) • Average interest: 2.8% (Dec 11: - USD 56% (Dec 11: 54%) 3.0%)** - GBP 58% (Dec 11: 58%) • 0.5% change in interest rates • A change of 10% on period-end EPS change: €
Slide 36: Yield movements & cap rates H1 2012
Yield movements & cap rates H1 2012 Retail Office Other Cap rate Belgium +0.1% +0.1% - 6.3% Finland 0.0% -0.9% - 5.8% France 0.0% 0.0% - 6.0% The Netherlands 0.0% +0.3% 0.0% 6.1% Spain 0.0% 0.0% 0.0% 7.1% United Kingdom +0.4% +0.1% 0.0% 6.5% U.S.A. 0.0% +0.2% -0.8% 6.9% Cap rate 6.1% 6.6% 7.0% 6.4%
Slide 37: Balance sheet (€ m)
Balance sheet (€ m) June 2012 Dec 2011 Dec 2010 Total assets * 3,151.9 3,217.9 3,077.6 Interest bearing debt long -1,351.1 -1,224.1 -876.9 Interest bearing debt short -88.0 -65.0 -271.1 Deferred tax liabilities -106.4 -115.8 -129.3 Other liabilities * -89.6 -99.0 -72.2 Equity 1,516.8 1,714.0 1,728.1
Slide 38: Investor relations
Investor relations: Charles Bloema/Jaap-Jan Fit tel: +31(0)703074545/4543 [email protected] www.wereldhave.com