Mas P.L.C. · JSE:MSP
Mas P.L.C — MAS Real Estate — 16 months to 30 June 2014 Earnings Presentation
28 slides from Mas P.L.C's earnings presentation, August 2014
Slide 1: Results Presentation August 2014
MAS Real Estate Inc. Results Presentation August 2014 1
Slide 2: Notice
Notice Information contained in the document is believed by the issuer to be accurate and correct, and statements of opinion in this document are considered by the issuer to be reasonable, in each case at the date of this document, but the issuer does not accept responsibility for any such informati
Slide 3: Contents
Contents 1. Strategic update Lukas Nakos - Chief Executive Officer 2. Portfolio review Jonathan Knight - Chief Investment Officer 3. Financial review DPD Headquarters, Switzerland Malcolm Levy - Chief Financial Officer 4. Outlook Jonathan Knight - Chief Investment Officer 3 Aldi Market, Germany
Slide 4: Strategic update
Strategic update Lukas Nakos Chief Executive Officer 4
Slide 5: Company overview
MAS Share price (JSE) Company overview 24 21 18 Objectives 15 • MAS aims to achieve a high-quality income distribution from a diversified 12 3/1/13 5/17/13 7/29/13 10/9/13 12/19/13 3/4/14 5/21/14 Western European investment property portfolio, and growth through MAS Share price (JSE) - 15 August 201
Slide 6: Year in review
Aug 13 Dec 13 Feb 14 Mar 14 Aug 14 H2 2014 2016 Internalisation Further Capital raise discussion; pipeline Acquisition of €180m; acquisition; Acquisition of Karoo fund Signature of 100% of New shares; Sale of Aldi Sale of agreement to Completion of 90/10 target Waverley, Tuttlingen; Metchley Hall ac
Slide 7: Strategy
Strategy 2016 Target • High quality income distribution from diversified Western European investment property portfolio. 10% • By end 2016 to have 90% of the portfolio invested in income producing assets and the remainder in development/refurbishment opportunities. • By that time, the portfolio will
Slide 8: Pre cap raise, current & target
Pre Capital Raise Current 2016 Target Net assets €106m Net Assets € 289m (31 Dec 2013) (30 June 2014) 10% 32% 17% 12% 9% 71% 20% 31% 8% 90% Investment Property €33m Investment Property €23m Investment Property Developments €21m Developments €25m Developments Investments €34m Investments €35m Corpora
Slide 9: Progress towards 2016 target
Pipeline in exclusivity Capital raise Pipeline Current (30 June 2014) (30 June 2014) German Builders Under offer, SPA Markets €40m signed completing Closed on first September 2014 acquisition €108M Final negotiations New Waverley €60m €35M underway on fast with build start tracking Residential Augus
Slide 10: Further pipeline
€55M €80M Swiss Industrial EU Property Company German Listed Co JV Portuguese investments €70M German retail sale / leaseback €40M Swiss (Geneva) Industrial €40M €50M Further pipeline Pre-exclusivity 10
Slide 11: Portfolio review
Portfolio review Jonathan Knight Chief Investment Officer 11
Slide 12: Investment property
Investment property • Majority of assets are performing in line • Disposal of Metchley Hall and with expectations Tuttlingen Aldi store at a good profit over book value • CPI indexed increase in rent at DPD from January 2014 • Ongoing active asset management of Glasgow retail property Zurich, Switze
Slide 13: Development property
Development property • New Waverley construction starting in August 2014 • Reviewing accelerating future phases - residential and offices • Lewes - buyout of joint venture partner and development manager Lewes, UK • Redevelopment of Braehead in the future 13 Edinburgh, UK
Slide 14: Investments
Investments • Completed Karoo Fund transaction at discount to NAV Value • NAV has since risen 37,4% as the value of the Fund’s equity holdings and distressed assets rose MAS' share of NAV • Top 3 investment holdings €50.6M Value per accounts - Sirius Real Estate: 31,3% €35.7M - The Mall Trust: 26,5%
Slide 15: Corporate and treasury
Corporate and treasury • Managed treasury strategy • Challenging low interest rate environment - zero in the eurozone • Cash invested in a range of short duration deposit accounts and as of post year end, equity • Majority held in euros (80%) with the remainder mainly in sterling to fund phase 1 of
Slide 16: Financial review
Financial review Malcolm Levy Chief Financial Officer 16
Slide 17: Performance highlights
Performance highlights 30 Jun 2014 28 Feb 2013 % change Adjusted NAV per share 103,8 96,9 7,1% JSE share price R19,80 R11,75 68,5% Market valuation R5,4bn R900m 500% Capital raised €180,4m €23,8m 658,0% Core income per share 2,82 4,21 -33,0% 17
Slide 18: Income statement highlights
Income statement highlights • 16 month period compares to 12 month Sixteen Year €000s months to ended % comparatives 30 Jun 14 28 Feb 14 • Strong cost control Controllable costs (1 550) (1 362) 14% • Increase in investment adviser fees driven by - Portfolio related expenses (665) (676) -2% increased
Slide 19: Adjusted core income and NAV analysis
Adjusted core income and NAV analysis Adjusted core income NAV 9.0% 2016 target - 90% of €220M portfolio in income generating investment 6.8% property €165M 4.5% €110M 2.3% €55M 0.0% €0M Investment Development Investments Corporate property property and treasury 19
Slide 20: Balance sheet highlights
Balance sheet highlights €000s/‘000s 30 Jun 14 28 Feb 13 % • Investment property increase and goodwill arise from buyout of other investors in the New Investment property 64 751 57 013 14% Waverley development Goodwill 1 372 - • Investments relate to the Karoo Fund, carried at €35,7 million. The Gro
Slide 21: Outlook
By night With operating h the normal high shifts effortlessl offering a vibran shopping, dinin Wander through browse the crea ARTISANSæTOælNDæ choose from a s and eateries, m A brilliant venue kick back and r dinner - the per friends or celeb New Waverley Square looking west to New Market Street Out
Slide 22: Market positioning
• Euro Interest rates low • UK Interest rates may rise • Strong cash purchaser with soon proven delivery track record • EU Inflation has fallen • Dynamic market cycle • Yields are overheating in places due to perception response in asset sector of recovery & weight of selection investment capital •
Slide 23: Assets under exclusivity
Assets under exclusivity Capital Raise Pipeline New Pipeline Central German Property Donaueschingen Heppenheim Goslar Pocking Alzenau Bruchsal portfolio Retail Retail Retail Retail Retail Park/ Sector Supermarket Retail Warehousing Warehousing Warehousing Warehousing Industrial Various inc Various l
Slide 24: Bruchsal / Pocking
Bruchsal Pocking
Slide 25: New Waverley
3 Hotels N New Waverley 180 residential apartments 6 7 2 Office buildings 30 retail shops Public realm, square, roads 25
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Slide 27: Santon North Street
Planning application to be Santon North Street submitted Autumn 2014 397 residential units 3 167 sqm commercial use 589 car parkings spaces 27
Slide 28: Disclaimer
Disclaimer This document does not constitute an offer for securities or other interests in MAS Real Estate Inc., nor does it purport to solicit offers to subscribe for securities or interests in MAS Real Estate Inc. This document does not constitute an offer for the sale of or subscription for, or t
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