Wereldhave N.v. · EURONEXT:WHA
Wereldhave — Investor Presentation (April 2014)
31 slides from Wereldhave's investor presentation, Apr 15, 2014
Slide 1: Dutch Property Tour
Dutch Property Tour April 15, 2014
Slide 2: Today's schedule
Today’s schedule Introduction, Wereldhave Schiphol Ronald van der Mark, CEO Action Dirk Anbeek, CEO Wereldhave Belinde Bakker, Managing Director NL 1 De Eggert, Purmerend 1 3 2 De Koperwiek, Capelle 2 3 Vier Meren, Hoofddorp Drinks, Wereldhave Schiphol 2
Slide 3: Guest speaker
Guest speaker Vier Meren - The Netherlands 3
Slide 4: Ronald van der Mark
Ronald van der Mark About Ronald CEO action since 2012 CFO Maxeda 2004-2011 Action acquired by 3i in September 2011 CFO of the year 2007 About Action Sales >€1bn 400+ shops 100 – 150 new articles every week 4
Slide 5: CEO update
CEO update Vier Meren - The Netherlands 5
Slide 6: Strategic approach: Derisk completed, Regroup phase well underway
Strategic approach: Derisk completed, Regroup phase well underway Derisk Regroup Growth Finished Halfway Future Phase I: Derisk Phase II: Regroup Phase III: Growth (2012-2013) (2013 -2015) (2015 onwards) Exit non-core markets Operational excellence Healthy balance sheet Controlled developmen
Slide 7: Phase II: Regroup is on track (2013-2015)
Phase II: Regroup is on track (2013-2015) Targets Regroup phase 2013-2015 2013 results 1. Operational excellence Average LfL rental growth of 125 bps above indexation 160 bps ≥ 98% occupancy 98.4% Overhead reduction to ≤ €16m in 2013 and ≤ €14m in 2014 €14.5m Strengthen talent devel
Slide 8: Core retail like-for-like rental growth
Core retail like-for-like rental growth Target 2014 adjusted to 140bps above indexation 4.50% Above 1.6% 3.60% 3.25% 0.35% 3.00% 1.25% 1.60% 1.40% Index 2.90% 3.25% 2.00% 2.00% 1.60% 2012A 2013 target Outperformance 2013A 2014 target Strong lease activity 2013 Bps LFL NRI Bps >indexation Bps >target
Slide 9: Core retail occupancy
Core retail occupancy 0.4% 98.4% 98.0% 98.0% 98.0% 98.0% 2012A 2013 target Outperformance 2013A 2014 target Strong letting performance Belgium 99.2% Finland 99.4% The Netherlands 97.0% 2014 target 98.0% 9
Slide 10: Sustainability framework 1/2
Sustainability framework 1/2 10
Slide 11: Sustainability framework 2/2
Sustainability framework 2/2 Targets Year-end 1 Enhance Improve energy efficiency for our real estate portfolio with 30% 2020 sustainable real Continue to achieve BREEAMUrbanisation ‘Outstanding’ for (re)developed offices 2014 estate Achieve BREEAM ‘Very Good’ for shopping centres 2020 2 Achieve emp
Slide 12: Economic environment
Economic environment Nivelles - Belgium 12
Slide 13: Indications for GDP growth in core markets
Indications for GDP growth in core markets 2012A 2013A 2014E 2015E +1.8% 1.4% 1.7% Belgium 0.2% -0.1% +2.3% 1.3% 0.2% Finland -1.0% -1.5% +2.5% 1.0% 1.3% The Netherlands -0.8% -1.2% Source: European Commission, Eurostat 13
Slide 14: Consumer confidence set to recover faster than EU, but from a lower starting point
Consumer confidence set to recover faster than EU, but from a lower starting point % m-o-m Based (01-01-2013) 10 (20) 0 (10) (30) (20) (30) (40) (40) Recovery Recovery Jan-13 Jul-13 Jan-14 Jan-13 Jul-13 Jan-14 NL Euro area Source: Eurostat, GFK 14
Slide 15: The Dutch sentiment is slowly improving
The Dutch sentiment is slowly improving September, 2013 March, 2014 CPB projects an economic Sustained improvement growth of 0.5% for 2014 in consumer confidence November, 2013 April, 2014 Retailers struggle to Sharp shrinkage of Dutch arrange bank financing budget deficit March, 2014 April, 2014 Re
Slide 16: Impact for Wereldhave
Impact for Wereldhave • In 2013 tenants bankruptcies negatively impacted NRI by 1% Less tenant • In 2014 the # of bankruptcies tends to slow down (Wereldhave one definitive bankruptcies bankruptcy YTD, but we remain cautious) • Wereldhave anticipates in like-for-like targets 1% bankruptcies for 2014
Slide 17: Retail market Netherlands
Retail market Netherlands Kronenburg - The Netherlands 17
Slide 18: Retail structure – The Netherlands
Retail structure – The Netherlands 304 Hardly any large 171 shopping centres (# of shopping 11 centres) 5,000 - 10,000 - > 45,000 sqm 10,000 sqm 45,000 sqm Wereldhave 1 7 2 0.35 Dense retail 0.26 0.25 structure (GLA in sqm per capita) Netherlands EU-27 France Source: Cushman & Wakefield – Research,
Slide 19: (Acquisition) criteria shopping centres
(Acquisition) criteria shopping centres Convenient shopping 90% of shopping needs Top-of-mind in catchment area Catchment area of at least 100,000 inhabitants within 10 minutes drive time Easy accessibility Strong national and international brands in combination with local heroes Fully e
Slide 20: Retail trends – The Netherlands
Retail trends – The Netherlands Population density Above average income Urbanisation (Inhabitants / sq.km) (Deviation from average) < 500 500-1000 >1000 low medium high < -10% > -10% > + 10% Source: CBS 20
Slide 21: Key focus areas
Key focus areas Top-50 shopping centres Acquisition criteria 1. 90% of shopping needs 2. Top-of-mind in catchment area 3. >100,000 inhabitants in 10 minutes drive 4. Easy accessibility 5. Strong (inter)national brands and local heroes 6. Embedded food, beverage and entertainment 7. Presence of two s
Slide 22: Large supermarkets attract footfall in similar proportions as premium department stores
Large supermarkets attract footfall in similar proportions as premium department stores Footfall 30,000 # per week 27,500 20,000 10,000 5,000 Small Small Medium Large specialty supermarket supermarket supermarket 8 out of 10 Wereldhave shopping centres are anchored by at least two medium-sized super
Slide 23: Overview food retail in Wereldhave centres
Overview food retail in Wereldhave centres City Year Small Small Medium Large Total specialty (# tickets) Arnhem 2014 1 1 1 45,000 2017 1 1 1 1 65,000 Capelle 2014 1 2 45,000 2016 1 3 65,000 Eindhoven 2014 2 1 70,000 Ettenleur 2014 1 20,000 2016 2 40,000 Geldrop 2014 1 1 30,000 Hoofddorp 2014 1 1 50
Slide 24: Day-to-day management
Day-to-day management Itis - Finland 24
Slide 25: Our shopping centre management model is aimed at continuous improvement
Our shopping centre management model is aimed at continuous improvement More Improve attractive: tenant mix “Natuurlijk F&B diverse dichtbij” More + + customers Invest -/- + Higher footfall Who stay €110m ROI >5% by 2015 longer + + And spend more Higher Raise rents turnover 25
Slide 26: Operational delivery: key attention points '14-'15
Operational delivery: key attention points ‘14-’15 Leasing Development Operations Marketing & Innovation 26
Slide 27: Leasing
Leasing Netherlands Belgium Finland 2015 now 4% 4% 4% 3% 5% 3% 5% 3% 5% now 2% 2% 6% 2% 6.5% 6% 2% 5% 6% 2015 1% 7% 1% 7% now 1% 7% Food & Beverage 2015 2015 4% 4% 4% 3% 5% now 3% 5% 3% 5% now 2015 2% 1% 6% 2% 2.5% 6% 2% 2% 6% Specialty leasing 1% 7% 1% 7% 1% 7% now One meeting per working Halfway H
Slide 28: Operations
Operations Service costs down Attractiveness Tenant intensivation NL: reduction of 10% by Amenities OCR + turnover 2015 A place to connect Tenant satisfaction BEL: CSR related surveys Family and kids FIN: CSR related entertainment 28
Slide 29: Marketing & innovation
Marketing & innovation + + Increase footfall Digitalisation Social inclusion Activity calendar Infrastructure in place 1% of NRI to invest in community and lever One big marketing event 15% of catchment area visitor base per month per shopping by 2015 end of year centre 29
Slide 30: Development
Development Yield on cost Pipeline after 2016 Sustainability NL: €80m @ 6% Arnhem BREEAM very good €30m @ 0% Waterloo BEL: €120m @ >6% Tournai II FIN: €102m @ 7% Nivelles II 30
Slide 31: Conclusion
Conclusion 1 Regroup On track Urbanisation phase 2 Focused on mid-sized shopping centres in NL, anchored by food retail NL retail stores 3 Operational Key attention points 2014-2015Urbanisation consistently driving regroup targets delivery 4 CSR Fully integrated in strategy andUrbanisation operation