Wereldhave N.v. · EURONEXT:WHA

Wereldhave — Merger or Acquisition (October 2014)

51 slides from Wereldhave's merger presentation, Oct 16, 2014

  1. Slide 1: Entering the Growth phase with the acquisition of six shopping centres in France

    Entering the Growth phase with the acquisition of six shopping centres in France Schiphol 16 October 2014

  2. Slide 2: Disclaimer

    Disclaimer THIS PRESENTATION IS NOT for release, publication or distribution (in whole or in part) in, into or from the United States, Australia, Canada, Japan or any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. This presentation has been prepar

  3. Slide 3: Becoming the leading specialist in mid-sized shopping centres

    Becoming the leading specialist in mid-sized shopping centres Acquisition of a €850m portfolio from Unibail-Rodamco  6 modern high quality shopping centres  5.5% net initial yield  Immediately EPS accretive Important and coherent addition to Wereldhave’s platform, entering the Growth phase  New

  4. Slide 4: Key terms of the transaction

    Key terms of the transaction Acquisition  Acquisition agreement follows exclusive discussions between Wereldhave and Unibail-Rodamco  6 shopping centres: Le Havre, Rouen (2x), Argenteuil (Greater Paris), Bordeaux, Strasbourg  Total consideration of €850m  Signed NRI €46.4m  Net initial yield 5.

  5. Slide 5: Agenda

    Agenda  Strategy update  Portfolio  Organisation  Financials  Update Q3 2014 5

  6. Slide 6: Strategy Update

    Strategy Update Docks Vauban – Le Havre 6

  7. Slide 7: Derisk and Regroup phases completed

    Derisk and Regroup phases completed Key achievements since mid 2012: Portfolio  More focused portfolio 7 85 5  Pipeline close to completion 4 2 26 Organisation 2012 Current 2012 Current 2012 Current  Management Team strengthened # countries # assets # asset classes  Robust country retail teams e

  8. Slide 8: Regroup phase completed (as per H1 2014)

    Regroup phase completed (as per H1 2014) Targets Regroup phase 2013-2015 H1 2014 results 1. Operational excellence  Average LfL rental growth of 125 bps above indexation  230 bps  ≥ 98% occupancy  98.5%  Overhead reduction to ≤ €16m in 2013 and ≤ €14m in 2014  On target  Strengthen talent

  9. Slide 9: Entering the Growth phase

    Entering the Growth phase A clear framework for target markets: Focus for 2015: Core markets  Execute integration plan France  Retail: Further expansion  Paris office market: Selective growth  Continued strong focus on operations Entry in new markets under stringent criteria  Northwest continen

  10. Slide 10: Maintaining focus on mid-sized shopping centres

    Maintaining focus on mid-sized shopping centres Acquisition criteria:  90% of shopping needs (min. 20,000m2 GLA)  Top-of-mind in catchment area Rationale for focusing on mid-sized shopping centres:  At least 100,000 inhabitants within 10 minutes drive time  Conveniently close  Easy accessibilit

  11. Slide 11: France becoming fourth core retail market

    France becoming fourth core retail market 1 shopping centre Finland Average GLA: 104,000m2 Average footfall: 16m 10 shopping centres Netherlands Average GLA: 19,119m2 Average footfall: 4m 8 shopping centres Belgium Average GLA:16,380m2 Average footfall: 3.5m 3 office buildings Paris Average GLA:17,5

  12. Slide 12: Fundamentals and considerations on France

    Fundamentals and considerations on France Long term positive fundamentals Considerations  Europe’s 2nd largest economy ≈ Reforms ahead  Growing population ≈ Government debt  High savings rate ≈ Unemployment  Low private sector indebtedness ≈ Labour market  Preferred destination for retailers 

  13. Slide 13: Europe's 2nd largest economy, proven resilience

    Europe’s 2nd largest economy, proven resilience Population Retail spending in France (€bn) CAGR 100 3.2% +1.7% 2.8% 450 408 414 81 388 399 80 2.5% 2.4% 381 380 64 60 60 300 40 1.4% 150 20 17 11 0.2% 5 0 0 FR DE IT NL BE FI 08 09 10 11 12 13 Population (m) Forecasted growth 2013 - 2019 Solid fundamen

  14. Slide 14: Attractive destination for retailers

    Attractive destination for retailers Presence of leading retailers Preferred destination of leading retailers 60% 50 48% 49% 40% 50% 40 43% 40% 38% 36% 30 26% 30% 20 17% 18% 20% 15% 14% 10 8% 10% 2 1 4 8 5 28 2 1 8 13 7 26 0% 0 FR DE IT NL BE FI FR DE IT NL BE FI % leading international retail chain

  15. Slide 15: Portfolio

    Portfolio Rivétoile - Strasbourg 15

  16. Slide 16: Key portfolio metrics

    Key portfolio metrics Number of assets 6 Total signed NRI: €46.4m Total GLA (‘000m2) 233.3 9.9 9.2 9.4 8.1 Average GLA (‘000m2) 38.9 5.3 4.5 Owned GLA (‘000m2) 202.5 Average owned GLA (‘000m2) 33.8 Average occupancy: 91% 92% 90% 93% 93% 90% 83% Total signed NRI (Jul-2014, €m) 46.4 Average signed NRI

  17. Slide 17: Modern and high quality portfolio with identified upside potential

    Modern and high quality portfolio with identified upside potential Located in the heart of major French cities Upside potential Location Easily accessible Rouen Le Havre Dominant in sizeable catchment areas Greater Paris Strasbourg Above average spending power Bordeaux Proven track record Diversifie

  18. Slide 18: Located in the heart of major French cities, easily accessible

    Located in the heart of major French cities, easily accessible Meriadeck: the urban convenience shopping centre of Bordeaux city Total GLA 39,500m2 Owned GLA 32,400m² NRI €8.1m Footfall 12.7m Ownership 100% Accessibility Côté Seine: the urban convenience shopping centre of Argenteuil city, Greater P

  19. Slide 19: Located in the heart of major French cities, easily accessible

    Located in the heart of major French cities, easily accessible Saint Sever: the urban convenience shopping centre of Rouen city Total GLA 45,400m2 Owned GLA 34,400m² NRI €9.2m Footfall 9.8m Ownership 100% Accessibility Docks 76: the shopping and leisure destination of Rouen area Total GLA 37,600m² O

  20. Slide 20: Located in the heart of major French cities, easily accessible

    Located in the heart of major French cities, easily accessible Docks Vauban: the shopping and leisure destination of Le Havre area Total GLA 53,500m2 Owned GLA 53,500m² NRI €4.5m Footfall 5.4m Ownership 100% Accessibility Rivétoile: the unique trendy destination of Strasbourg area Total GLA 28,400m2

  21. Slide 21: Dominant in sizeable catchment areas

    Dominant in sizeable catchment areas No. inhabitants in catchment area 10 min drive 2,222,532 20 min drive 18% % Penetration drive time rate 10 or 20 min 577,201 59% 530,473 59% 420,196 20 min 64% 64% 376,570 drive time 260,043 268,025 243,318 67% 229,006 195,312 10 min Acquisition 120,253 134,730 c

  22. Slide 22: Above average spending power

    Above average spending power Household income in catchment area (€) 10 min drive 33,782 34,189 29,936 27,429 28,496 27,187 France average 24,951 Spending power above average  Household income well above French average  Shopping centres are located in the wealthier part of their cities, except Côté

  23. Slide 23: Proven track record of this portfolio

    Proven track record of this portfolio Portfolio footfall growth vs CNCC index Tenant sales vs CNCC index Portfolio 4.4% Portfolio 2.4% CNCC Index CNCC Index 2.1% 1.4% 2.1% 1.8% 0.2% 0.0% -0.2% -0.1% -0.8% -0.7% -1.1% -1.3% -1.3% -1.6% -1.8% -1.9% -1.7% -2.3% 2010 2011 2012 2013 Aug-14 2010 2011 2012

  24. Slide 24: Diversified tenant base…

    Diversified tenant base… Strong food anchors Leading international brands Embedded food, beverage and entertainment High quality tenant base  Servicing 90% of shopping needs  Fully embedded food, beverage and entertainment functions  Sizeable food anchors 24

  25. Slide 25: …and established cash flows

    …and established cash flows Well diversified tenant base (31 July 2014) Lease expiration schedule (31 July 2014) New tenant # units Total rent €’000 Wereldhave 48% 6 5.1 2,440 Confidential  1 3.5 1,662  3 3.4 1,649 3 2.3 1,117 19% 17%  3 2.1 1,009 5 1.9 929 7% 4% 3% 3%  6 1.9 916 5 1.6 778 <2015

  26. Slide 26: Identified value creation opportunities

    Identified value creation opportunities Envisaged portfolio approach # shopping centres  Maximise occupancy 6 Maximise occupancy Re-tenanting  Attract new anchors 3 (NIY 5.5%,  Optimise brand mix 4 if fully leased 6.2%)  Improve customer flow 2  Extend food offering 3 Re-programming Optimise fo

  27. Slide 27: Saint Sever, Rouen

    Saint Sever, Rouen the urban convenience shopping centre of Rouen city Construction: 1978 Fully renovated in 2011 8 restaurants, 14 screen cinema BREEAM Very good Identified value creation opportunities  Create new escalators to the 2nd floor (€1m) and benefit from improvement of customer flow  In

  28. Slide 28: Meriadeck, Bordeaux

    Meriadeck, Bordeaux the urban convenience shopping centre of Bordeaux city Construction: 1980 Renovated in 2008 11 restaurants BREEAM Excellent Identified value creation opportunities  Re-tenant 2nd floor after arrival of new anchor PittaRosso  Update amenities (€1m) and develop seated food offer

  29. Slide 29: Côté Seine, Argenteuil, Greater Paris

    Côté Seine, Argenteuil, Greater Paris the urban convenience shopping centre of Argenteuil city Construction: 2002 Renovated in 2010 7 restaurants BREEAM Outstanding Identified value creation opportunities  Refreshments and refurbishments  Reposition retail mix to price oriented national brands  C

  30. Slide 30: Rivétoile, Strasbourg

    Rivétoile, Strasbourg the unique trendy destination of Strasbourg area Construction: 2008 12 restaurants Next to 9th largest cinema in France BREEAM Very good Identified value creation opportunities  Maintain tenant rotations to keep attracting modern brands  Realise new food court to optimise cus

  31. Slide 31: Docks Vauban, Le Havre

    Docks Vauban, Le Havre the shopping and leisure destination of Le Havre area Construction: 2009 Anchored by a 12 screen cinema 9 restaurants BREEAM Outstanding Identified value creation opportunities  Attract new anchor tenant  Endeavour leasing out offices on first floor  Improve restaurant offe

  32. Slide 32: Docks 76, Rouen

    Docks 76, Rouen the shopping and leisure destination of Rouen area Construction: 2009 Anchored by a 14 screen cinema 8 Restaurants BREEAM Very good Identified value creation opportunities  Add food offer and maintain tenant rotations to keep attracting modern brands  Study extension opportunities

  33. Slide 33: Organisation

    Organisation Saint Sever - Rouen 33

  34. Slide 34: Current platform offers basis for successful integration of the portfolio

    Current platform offers basis for successful integration of the portfolio  Current French platform provides Wereldhave  SIIC status  Office in Paris  Accounting and IT systems  Wereldhave organisation is strengthened Netherlands Belgium Finland France  New CIO and HR director hired  Strong co

  35. Slide 35: Building the French retail team

    Building the French retail team Integration plan for France  Prepared and in place CEO Dirk Anbeek  Start execution mid October  CEO Dirk Anbeek will personally lead the French retail Ad interim organisation until a French retail director has been Retail recruited director France French retail te

  36. Slide 36: Integration plan for the platform

    Integration plan for the platform 2014 2015 Q4 Q1 Q2 Q3 Q4 Actions Wereldhave Portfolio integration (Q4) Wereldhave  Back office External party  IT systems  Invoicing (Q1 done by Unibail-Rodamco, shadow by Wereldhave) Wereldhave Recruitment (Q4-Q2)  Attract retail director France  Unibail-Rodam

  37. Slide 37: Financials

    Financials Côté Seine – Argenteuil, Greater Paris 37

  38. Slide 38: Financials post-acquisition

    Financials post-acquisition Wereldhave Acquisition Post-acquisition H1 2014 Investment properties (€m) 2,326 850 3,176 Interest bearing debt (€m) 962 c150 c1,112 Net LTV (%) 35 c35 c35 Shopping centres (#) 181 6 24 Offices (#) 7 - 7 GLA owned total portfolio (m2) 546,340 202,500 748,840 Net rental i

  39. Slide 39: Seamless fit with current portfolio

    Seamless fit with current portfolio Total GLA per shopping centre (m2) 104,000 Current portfolio French shopping 53,500 centres 45,400 39,500 37,600 34,500 33,000 Average 30,252 28,900 28,600 28,400 27,828 25,000 23,200 22,146 21,000 Itis Kronenburg Vier Meren Belle-Ile Nivelles De Genk Etten-Leur E

  40. Slide 40: Key acquisition terms

    Key acquisition terms Key terms Comments  €850m acquisition price  Including all costs  €46.4m NRI  Signed NRI as of 31 July 2014  NRI includes €1.5m overhead expenses1 that Wereldhave classifies as general costs (see below)  For a number of vacant units with a total rent of €2m, Unibail-Rodam

  41. Slide 41: Key financing terms

    Key financing terms Key terms Comments  Up to €550m equity raising  EGM to approve rights issue  c€150m to be drawn upon existing debt  Sufficient remaining headroom c€503m via current facilities facilities  Low marginal cost of debt, below 1.2%  Conservative balance sheet post transaction  €

  42. Slide 42: Debt profile: post-acquisition

    Debt profile: post-acquisition Key parameters Post-acquisition Q3/14  c€150m drawn on existing debt facilities Interest bearing debt €1,200m €1,050m  All newly drawn debt at variable interest rates Average cost of debt 2.4% 2.6% Borrowing capacity €503m €653m  Maturity of newly drawn debt of 4.5

  43. Slide 43: Rights issue allowing eligible shareholders to participate

    Rights issue allowing eligible shareholders to participate  Rights issue of up to €550m to finance the acquisition  EGM on 28 November to approve the rights issue  Pricing of the rights issue post EGM approval  Underwriting by syndicate banks  Non-refundable deposit towards purchase considerati

  44. Slide 44: Indicative timeline

    Indicative timeline 28 November  EGM to approve rights issue 2 December  Start subscription period rights issue 11 December  Rump placement 16 December  Settlement rights issue 19 December  Closing acquisition 44

  45. Slide 45: Becoming the leading specialist in mid-sized shopping centres

    Becoming the leading specialist in mid-sized shopping centres  Acquisition of a €850m portfolio of six mid-sized shopping centres  Important and coherent addition to Wereldhave’s platform, entering the Growth phase  Modern and high quality portfolio with demonstrated resilience  Attractive finan

  46. Slide 46: Contact details

    Contact details Press: Analysts:  Richard Beentjes  Robert Bolier  [email protected][email protected]  T +31 20 702 78 33  T + 31 6 20 11 13 56  Jaap-Jan Fit  [email protected]  T +31 20 702 78 43  [email protected]  www.wereldhave.com 4

  47. Slide 47: Update Q3 2014

    Update Q3 2014 Meriadeck - Bordeaux 47

  48. Slide 48: Outlook 2014: reconfirmed

    Outlook 2014: reconfirmed  Target LfL rental growth 2014 for the Shopping centre portfolio of 200 bps  Direct result FY 2014 between € 3.35 and € 3.45 per share (excluding rights issue) 48

  49. Slide 49: Core retail occupancy

    Core retail occupancy Performance of 98.5%: outperformance of 0.5% 98.4% 98.5% 98.0% 0.5% 2013A 2014 Target Outperformance Q3 2014 Leasing activity was high:  Belgium: 98.0%  Finland: 99.3%  The Netherlands: 98.4% 49

  50. Slide 50: Development pipeline per Q3 2014

    Development pipeline per Q3 2014 Committed (in €m) Total Capex (net) so Capex spend Expected NIY Percentage Completion investment far 2014 pre-let Itis (FI) 102 90 15 7.0% 93% Q4 2014 Issy-Les-Moulineaux (Noda, FR) 138 132 18 7.0% 65% Q4 2014 Genk (BE) 86 74 19 6.5% 75% Q4 2014 NL redevelopment prog

  51. Slide 51: Debt profile: update per Q3 2014

    Debt profile: update per Q3 2014 Key parameters Q2/14 Q3/14 Covenant  Senior unsecured notes (€265m) issued through USPP in Interest bearing debt €962m €1,050m July 2014 with an average maturity of 10.1 years and a fixed Average cost of debt 2.2% 2.6% effective average interest of 2.9% Borrowing ca

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