Wereldhave N.v. · EURONEXT:WHA
Wereldhave — 9M 2012 Earnings Presentation
34 slides from Wereldhave's earnings presentation, Nov 1, 2012
Slide 1: Investor presentation 9M 2012 results
Investor presentation 9M 2012 results
Slide 2: Key results: stabilising in Q3
Key results: stabilising in Q3 • Direct result p/s: € 3.05 (-17.6% yoy) Q3: +€ 0.01 vs Q2 • Revaluation portfolio: -4.75% Q3: -0.25% • NAV p/s: € 63.72 (-12.9% yoy) Q3: +0.4% • Occupancy 88.5% (from 88.3% in Q2) Q3: +0.2% • L-f-l rental growth core portfolio +3.0% Q3: -0.1% non-core pf -5.3% Q3: -4.
Slide 3: Measures: good progress
Measures: good progress • Sales proces US portfolio on track • Action plans UK shopping centres ready • Cost reduction program implemented from Q4 2012 onwards • Strategy update to be announced 11 Feb 2013 3
Slide 4: Country update
Country update • US: change in leasing policy shows results: 10,000 sqm office space currently under offer. Occupancy Eilan apartments 61% end-October (June: 33%). • UK: NRI Poole stabilising; action plans to be implemented • Spain: conditions harsh, cash-flow security improved at expense of l-f-l,
Slide 5: Turnaround strategy Poole
Turnaround strategy Poole Weaknesses: • ‘Tired’ centre • Lack of mid-sized units • Food-offer relatively poor Strengths: • High and stable footfall at 11.5 million • Opportunity for large ‘trading gap’ to be captured by turnaround Plans: • Short-term: measures implemented to stabilise performance •
Slide 6: Turnaround strategy Poole
Turnaround strategy Poole 6
Slide 7: Optimisation Ealing Broadway
Optimisation Ealing Broadway Strengths: • Well-established in catchment • High footfall (15.5 millon) • Stable performance Opportunities: • Raising rent and value through several asset management initiatives: - Re-letting car park at higher rent; adding new prime unit in unused area; mall commercial
Slide 8: Optimisation Ealing Broadway
Optimisation Ealing Broadway 8
Slide 9: Outlook 2012
Outlook 2012 • Direct result p/s at least € 3.80 (incl. € 1.5 – 2 mln restructuring cost) and dividend at € 3.20-3.40 p/s • Continuation disposal non-core assets in Europe • Proceeds used to lower LTV and to fund development pipeline • No acquisitions in the near term • 2013: sale US portfolio; eval
Slide 10: Operational results
WERELDHAVE Operational results (@ Wereldhave. Value for tomorrow.
Slide 11: DIR p/s bridge (€ x1)
DIR p/s bridge (€ x1) 4.00 3.80 3.70 -0.47 3.60 0.14 -0.45 3.40 3.20 0.13 3.05 3.00 2.80 Sept. 2011 Standing Acquisition Sales Currency Sept. 2012 11
Slide 12: NRI bridge (€ m)
NRI bridge (€ m) 150.0 € x 1 mln Change in Net Rental Income 145.0 140.0 135.0 10.6 -14.8 130.0 125.0 121.0 120.0 0.0 -1.5 115.3 115.0 110.0 105.0 100.0 NRI Q3 2011 Acquisitions Disposals Like for like Currency/Other NRI Q3 2012 12
Slide 13: L-f-l NRI YTD Q3 2012
L-f-l NRI YTD Q3 2012 Core portfolio Other Total Belgium 4.4% 3.1% 4.0% Finland 5.3% 5.3% The Netherlands 4.0% -1.8% 3.0% United Kingdom -11.2% 8.8% -2.5%* Total 3.2% France 1.7% 1.7% Spain 2.7% 0.8% 2.1% Total 2.0% U.S.A. -11.0% -11.0%* Total portfolio 3.0% -5.3% 0.0% * in local currency 13
Slide 14: Valuation result standing portfolio -4.75%
Valuation result standing portfolio -4.75% Revaluation 1st three quarters 2012 Yield effect - Market Rent & Other effects TOTAL -2,79% -1,96% UNITED STATES -11,24% -2,28% GREAT BRITAIN -4,63% -5,28% FINLAND 0,20% 0,04% SPAIN -8,72% 0,00% FRANCE 0,00% 1,80% BELGIUM -3,32% 4,93% THE NETHERLANDS -0,52%
Slide 15: NAV impacted by valuations
NAV impacted by valuations Sept. 2012 Dec 2011 Dec 2010 NAV per share (IFRS) 63.72 73.44 75.12 NAV per share (EPRA) 68.38 76.40 80.29 NNNAV per share (EPRA) 66.56 75.25 76.04 15
Slide 16: Debt profile
WERELDHAVE Debt profile (@ Wereldhave. Value for tomorrow.
Slide 17: LTV to be lowered to 40% by asset sales
LTV to be lowered to 40% by asset sales • Interest bearing debt: € 1,437m (2011: € 1,289m)* • Fixed/floating: 44%/56% (Dec 11: 44%/56%)* • Average cost: 2.6% (Dec 11: 3.0%)** • LTV: 46.9% (Dec 2011: 41%) • ICR: 4.5x (Dec 2011: 5.4x) *On nominal basis. **On IFRS basis: 2.8% (Dec 2011: 3.2%) 17
Slide 18: Well diversified debt profile Sept. 2012
Well diversified debt profile Sept. 2012 Type of debt Maturity profile total 1,437m* 600 550 mortgages 3% 500 US PP 20% 400 304 300 276 bank loans (unsecured) convertible 200 45% bond 09-14 16% 68 84 100 50 63 54 30 6 26 convertible 14 bond 10-15 0 16% 2012 2013 2014 2015 2016 2017 2018 2019 2020 20
Slide 19: Development pipeline
WERELDHAVE Development pipeline (@ Wereldhave. Value for tomorrow.
Slide 20: Committed development pipeline
Committed development pipeline Project Location Total Capex sofar Expected net Estimated Remarks investment yield completion Richmond UK € 28m € 25m* 6.25-6.75% Nov 2012 50% pre-let Ghent Belgium € 15m € 3m 6.75-7.0% 2013 Mixed-use; 50% retail; construction started Joinville-le-Pont France € 71m € 2
Slide 21: Uncommitted development pipeline
Uncommitted development pipeline Project Location Total Capex Expected net Estimated Remarks investment sofar yield completion Tournai I Belgium € 15m € 5m 7.0-7.25% 2014 Building permit has been (Retail park) requested Nivelles II (Retail park) Belgium € 12m € 2m 7.0-7.25% 2014 In planning phase Wa
Slide 22: Appendix: result & balance sheet tables
Appendix: result & balance sheet tables
Slide 23: Total result (€ m)
YTD Q3 YTD Q3 yoy Total result (€ m) 2012 2011 Direct result 72.7 84.7 -14.2% Indirect result -180.9 -11.6 Profit -108.2 73.1 Minority interest 8.9 5.5 61.8% Profit for shareholders -117.1 67.6 23
Slide 24: Direct result (€ m)
YTD Q3 YTD Q3 Direct result (€ m) 2012 2011 yoy Gross rental income 156.2 155.6 0.4% Operational costs -40.9 -34.6* 18.2% Net rental income 115.3 121.0* -4.7% General costs -15.0 -11.8 27.1% Other 0.9 1.5 -40.0% Net financial costs -27.4 -24.5* 11.8% Taxes -1.1 -1.5 -26.7% Direct result 72.7 84.7 -1
Slide 25: Indirect result (€ m)
Indirect result (€ m) YTD Q3 YTD Q3 2012 2011 Revaluation -181.7 -8.6 Results on sales 3.2 2.9 Deferred tax 5.4 -3.2 Net financial costs -3.0 -3.4 Other -4.8 0.7 Indirect result -180.9 -11.6 Minority interest 2.4 0.3 Indirect Result Stakeholders -183.3 -11.9 25
Slide 26: Net rental income (€ m)
Net rental income (€ m) 9M 2012 % total yoy l-f-l Total 115.3 100% -4.7% 0.0% Belgium 22.8 19.8% 28.1% 4.0% Finland 17.6 15.3% -17.2% 5.3% France 8.2 7.1% -4.6% 1.7% The Netherlands 26.6 23.0% -9.9% 3.0% Spain 5.5 4.8% 2.7% 2.1% United Kingdom 17.7 15.3% 27.6% -2.5%* U.S.A. 16.9 14.7% -31.4% -11.0%*
Slide 27: Occupancy (EPRA)
Occupancy (EPRA) Retail Office Other Total Total Sept 2012 Dec 2011 Belgium 99.3% 83.6% - 94.7% 93.1% Finland 98.1% - - 98.1% 96.5% France - 99.0% - 99.0% 98.1% The Netherlands 96.8% 91.5% 88.5% 95.8% 95.6% Spain 64.4% 88.3% 75.4% 79.0% 76.9% United Kingdom 96.2% 96.3% 100% 96.3% 99.1% U.S.A. 52.6%
Slide 28: Lease expiry (rent as % of contracted rent as per September 30)
Lease expiry (rent as % of contracted rent as per September 30) Leases without end date and residentials USA are excluded (8.9 % of total) 28
Slide 29: 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 2.4 5.9 2,999 8,210 18,396 Finland 3.6 3.7 3,985 3,293 5,838 France 5.3 5.8 - 1,521 1,449 The Netherlands 2.7 3.1 1,211 7,204 19,399 Spain 2.0 4.2 2,167 2,554 3,151 Un
Slide 30: Financial cost (€ m)
Financial cost (€ m) 9M 2012 9M 2011 yoy direct indirect direct indirect direct indirect Interest expenses -29.7 -26.2 13.4% Amortised costs of loans -1.8 -1.8 Other non-cash costs -3.0 -3.4 -11.8% Interest income 0.3 0.3 Capitalized interest 3.8 3.2 18.8% Net Financial Costs -27.4 -3.0 -24.5 -3.4 1
Slide 31: Interest rate & currency sensitivity Sept 2012
Interest rate & currency sensitivity Sept 2012 • Floating rate loans 56% of debt • Hedge on investments (end of (FY11: 56%)* period) • Average interest: 2.6% (Dec 11: - USD 55% (Dec 11: 54%) 3.0%)** - GBP 57% (Dec 11: 58%) • 0.5% change in interest rates • A change of 10% on period-end EPS change: €
Slide 32: Yield movements & cap rates 9M 2012
Yield movements & cap rates 9M 2012 Retail Office Other Cap rate Belgium 0.0% +0.6% - 6.4% Finland 0.0% 0.0% - 5.8% France - 0.0% - 5.8% The Netherlands 0.0% 0.0% +0.6% 6.1% Spain 0.0% 0.0% 0.0% 7.0% United Kingdom 0.0% +0.7% 0.0% 6.6% U.S.A. 0.0% 0.0% -0.1% 6.9% Cap rate 6.1% 6.8% 7.1% 6.4% Cap rat
Slide 33: Balance sheet (€ m)
Balance sheet (€ m) Sept 2012 Dec 2011 Dec 2010 Total assets * 3,158.8 3,217.9 3,077.6 Interest bearing debt long -1,341.9 -1,224.1 -876.9 Interest bearing debt short -103.8 -65.0 -271.1 Deferred tax liabilities -107.4 -115.8 -129.3 Other liabilities * -79.1 -99.0 -72.2 Equity 1,526.6 1,714.0 1,728.
Slide 34: Investor relations contact
Investor relations: Charles Bloema/Jaap-Jan Fit tel: +31(0)703074545/4543 [email protected] www.wereldhave.com