Wereldhave N.v. · EURONEXT:WHA
Wereldhave — H1 2011 Earnings Presentation
31 slides from Wereldhave's earnings presentation, Aug 4, 2011
Slide 1: Investor presentation H1 2011 results
Investor presentation H1 2011 results
Slide 2: Recent highlights
Recent highlights • New lettings in Belgian and US office portfolio. Occupancy rate improving • ‘Heads of terms’ agreed for hotel in Eilan-project: 20 yr fixed lease, operator targets the Méridien-brand • Sale non-strategic assets in UK and The Netherlands of € 65m, 4% above latest valuation • Acqui
Slide 3: Business environment
Business environment • GDP outlook largely unchanged. Continuing Euro-crisis and US debt dominating financial markets. Slide of dollar is leveling off. Euro zone inflation appears to stabilize • Consumer trust still volatile, spending growth remains limited in most countries • Investment markets: vo
Slide 4: H1 2011 key figures
H1 2011 key figures • Direct result p/s: € 2.51 (-1.2% yoy) • Total result p/s: € 2.26 • Revaluation portfolio: -0.2% • NAV p/s: € 70.47 (-6.1% yoy) • Investment portfolio: € 2,733m (-1% yoy) • Development pipeline ± € 456m • Occupancy 90.2% (EPRA) • LTV 40% 4
Slide 5: Total result (€ m)
H1 2011 H1 2010 yoy Total result (€ m) Direct result 57.4 57.8 -0.6% Indirect result -4.8 0.2 Profit 52.6 58.0 Minority interest 4.0 3.0 31.5% Profit for shareholders 48.6 55.0 5
Slide 6: Direct result (€ m)
Direct result (€ m) H1 2011 H1 2010 yoy Gross rental income 103.9 100.7 3.2% Operational costs -21.7 -22.7 -4.4% Net rental income 82.2 78.0 5.5% General costs -8.2 -7.1 15.6% Other 1.2 0.7 87.0% Net financial costs -17.0 -11.3 50.6% Taxes -0.8 -2.5 -66.2% Direct result 57.4 57.8 -0.6% Minority inte
Slide 7: NRI bridge (€ m)
NRI bridge (€ m) 90 9.5% -3.8% 85 1.1% -1.3% 82.2 80 78.0 75 70 65 60 55 50 NRI H1 2010 Acquisitions Disposals Like for like Currencies NRI H1 2011 7
Slide 8: Net rental income (€ m)
Net rental income (€ m) H1 2011 % total yoy l-f-l Total 82.2 100% 5.5% 1.1% Belgium 11.8 14.4% -1.7% -4.6% Finland 14.3 17.4% 0.9% 0.9% France 5.7 6.9% 77.4% 77.4% The Netherlands 20.4 24.8% 20.1% 0.9% Spain 3.7 4.5% -21.0% -21.0% United Kingdom 10.2 12.4% 19.5% 6.9%* U.S.A. 16.1 19.6% -12.3% -5.5%*
Slide 9: Opening T-Mobile store in Kronenburg, Arnhem, July 2011
Opening T-Mobile store in Kronenburg, Arnhem, July 2011 9
Slide 10: Occupancy (EPRA)
Occupancy (EPRA) Retail Office Other Total Total June 2011 Dec 2010 Belgium 99.6% 73.4% - 89.0% 87.4% Finland 98.3% - 100% 98.4% 98.0% France 89.0% 99.1% - 97.9% 97.9% The Netherlands 97.8% 98.1% 89.3% 96.9% 98.2% Spain 54.8% 87.1% 100% 79.2% 85.7% United Kingdom 98.1% 92.2% 100% 95.1% 91.9% U.S.A.
Slide 11: Lease expiry
Lease expiry (rent as % of contracted rent in June 2011) 20% 18% 1% 16% 1% 14% 0.4% 12% 8% 1% 11% 0.1% 0.3% 10% 6% 9% 0.2% 8% 1% 6% 3% 0.3% 4% 10% 4% 0.2% 3% 8% 6% 6% 1% 4% 0.1% 5% 2% 2% 3% 3% 1% 1% 0% 1% 1% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 >2020 Offices Retail Other Leases without
Slide 12: Indirect result
SHOPPING CENTRES S AND RESIDENTIAL TY DEVELOPMENT WERELDHAVE Indirect result (wp Wereldhave. Value for tomorrow.
Slide 13: Indirect result (€ m)
Indirect result (€ m) H1 2011 H1 2010 Revaluation -6.2 10.2 Results on sales 2.6 1.1 Deferred tax -2.6 -3.5 Net financial costs -2.4 -1.5 Other 3.8 -6.1 Indirect result -4.8 0.2 Minority interest 0.5 -0.6 Shareholders -5.3 0.8 13
Slide 14: Yield movements & cap rates H1 2011
Yield movements & cap rates H1 2011 Retail Office Other Resi Cap rate Belgium 0.0% 0.0% - - 6.3% Finland 0.0% -0.2% - - 5.9% France 0.0% 0.0% - - 6.0% The Netherlands 0.0% 0.0% -0.3% 0.0% 6.1% Spain 0.0% -0.3% -0.3% - 7.0% United Kingdom -0.3% -0.1% 0.0% - 6.8% U.S.A. 0.0% -0.1% - 0.0% 6.7% Cap rate
Slide 15: Balance sheet & Debt profile
DEVELOPMENT SHOPPING CENTRES S AND RESIDENTIAL WERELDHAVE Balance sheet & Debt profile (wp Wereldhave. Value for tomorrow.
Slide 16: Sound balance sheet (€ m)
Sound balance sheet (€ m) June 2011 2010 2009 Total assets 3,042.4 3,121.8 2,597.0 Interest bearing debt long -1,074.1 -876.9 -572.1 Interest bearing debt short -80.4 -271.1 -140.8 Deferred tax liabilities -129.3 -129.3 -119.0 Other liabilities -116.3 -116.4 -78.6 Equity 1,642.3 1,728.1 1,686.5 NAV
Slide 17: Debt: conservative ratios at low cost
Debt: conservative ratio’s at low cost • Interest bearing debt: € 1,173m (2010: € 1,174m)* • Fixed/floating: 48%/52% (Dec 10: 57%/43%) • Average cost: 3.0%* (Dec 10: 2.6%) • LTV: 40% (Dec 2010: 39%) • ICR: 5.6x (Dec 2010: 6.8x) * On nominal basis. On IFRS basis: 3.4% (Dec 2010: 3.2%) 17
Slide 18: Debt profile June 2011
Debt profile June 2011 Type of debt Maturity profile total € 1,173m* 400 369 mortgages 3% 350 319 US PP 17% 300 261 250 bank loans 200 181 (unsecured) convertible 40% bond 09-14 150 20% 100 80 58 40 35 50 22 24 convertible 3 bond 10-15 0 20% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 deb
Slide 19: Future: 2011/2012
Future: 2011/2012 • Office portfolio: continued focus on improving occupancy rate • Retail portfolio: focus on l-f-l rental growth and refurbishment- /extension- plans • Further acquisitions of UK shopping centres and offices in Paris & Madrid • Continuation of active sales program non-strategic ass
Slide 20: Development pipeline
DEVELOPMENT SHOPPING CENTRES S AND RESIDENTIAL WERELDHAVE Development pipeline (wp Wereldhave. Value for tomorrow.
Slide 21: Development pipeline overview
Development pipeline overview Project Location Total Capex sofar Expected net Estimated Remarks investment yield completion San Antonio I* Texas, US $ 200m/€ € 91m**** 6.75-7.25% Q4 2011 - Q1 Heads of terms signed for hotel 140m** 2012 lease Nivelles I Belgium € 44m** € 20m**** 7.5-8.0% 2012 65% pre
Slide 22: San Antonio, progress report
San Antonio, progress report Number or Completion Market rent Comments m2 USD Offices 19,100 2010 Q3 21-22 per sqf, 2,000 sqm let net Hotel 165 rooms 2011 Q4 100 net Heads of terms signed, 20 yr Rev.PAR fixed lease, operator targets Le Méridien franchise (Starwood) Retail/leisure 3,300 2011 Q4 23-28
Slide 23: December 3, 2010
December 3, 2010 Wereldhave. Value for tomorrow.
Slide 24: (@ Wereldhave. Value for tomorrow.
(@ Wereldhave. Value for tomorrow.
Slide 25: Wereldhave. Value for tomorrow.
Wereldhave. Value for tomorrow.
Slide 26: 26
26
Slide 27: Appendix
Appendix SHOPPING CENTRES CES AND RESIDENTIAL WERELDHAVE iw _ Vrsthery (wp Wereldhave. Value for tomorrow.
Slide 28: Financial cost (€ m)
Financial cost (€ m) H1 2011 H1 2010 yoy direct indirect direct indirect direct indirect Interest expenses -16.8 -11.3 48.8% Amortised costs of loans -1.2 -0.9 40.6% Non-cash option expense convertible bonds -2.4 -1.5 55.9% Other non-cash costs -1.1 -0.5 102.4% Interest income 0.2 0.2 -3.6% Capitali
Slide 29: EPRA lease data
EPRA lease data Average lease length Contract rent expiring in: to break to expiry Year 1 Year 2 Year 3-5 (yr) (x € 1,000) Belgium 3.0 4.9 863 8,013 12,782 Finland 3.6 3.6 2,894 6,631 11,653 France 6.3 7.1 307 309 1,982 The Netherlands 3.4 3.7 1,145 6,183 20,191 Spain 2.2 3.9 1,495 3,016 4,111 Unite
Slide 30: Interest rate & currency sensitivity June 2011
Interest rate & currency sensitivity June 2011 • Floating rate loans 52% of debt (FY10: • Hedge on investments (end of 43%) period) • Average interest: 3.0%* (Dec 10: 2.6%) - USD 45% (Dec 10: 45%) • 0.5% change in interest rates - GBP 63% (Dec 10: 72%) EPS change: € 0.14 (or 2.8% of DR) • A change o
Slide 31: Investor relations contact
Investor relations: Charles Bloema/Jaap-Jan Fit tel: +31(0)703469325 [email protected] www.wereldhave.com