Mas P.L.C. · JSE:MSP
Mas P.L.C — MAS Real Estate — FY2015 Earnings Presentation
35 slides from Mas P.L.C's earnings presentation, September 2015
Slide 1: Annual results presentation
MAS REAL ESTATE INC Annual results presentation September 2015 RESULTS PRESENTATION SEPTEMBER 2015 1
Slide 2: Contents
MAS REAL ESTATE INC Contents 1. Strategic update Lukas Nakos – Chief Executive Officer 3 2. Financial review Malcolm Levy – Chief Financial Officer 17 3. Portfolio review Jonathan Knight – Chief Investment Officer 24 4. Outlook Jonathan Knight – Chief Investment Officer 31 5. Closing comments Lukas
Slide 3: Strategic update
North Street Quarter Lukas Nakos Strategic update Chief Executive Officer RESULTS PRESENTATION SEPTEMBER 2015 3
Slide 4: Company overview
MAS REAL ESTATE INC Company overview Business overview Our vision Who we are • To be the pre-eminent listed real estate investment company, with a Western GERMANY European focus and delivering sustainable UNITED KINGDOM 81,541 sqm 90,8% occupancy distributions whilst creating stakeholder value 107,8
Slide 5: Highlights
MAS REAL ESTATE INC Highlights • Adjusted NAV per share grew 16,8% from 103,8 to 121,2 euro cents per share • Adjusted core income per share increased 20,9% from 2,82 to 3,35 euro cents per share • Profit for the year grew 858% to ¤48,5 million • Direct property portfolio grew by 283% from ¤64,8 mil
Slide 6: Our business activities
MAS REAL ESTATE INC Our business activities DEVELOP ACQUIRE properties sustainably to maximise the well tenanted properties in strong and income from, and growth in value of, the resilient locations investments MANAGE OPTIMISE capital structure of the business to enhance our portfolio effectively to
Slide 7: Portfolio composition
MAS REAL ESTATE INC Portfolio composition Portfolio composition • Our portfolio consists of four segments 13% 13% • Two form the core of our business 8% 21% 44% and are expected to grow over 12% 67% time; namely Income generating property and Development 22% property 30 June 2014 30 June 2015 Expect
Slide 8: Income-generating
MAS REAL ESTATE INC Income-generating • Core component of our portfolio • Gearing applied on a per asset basis as appropriate • Acquired or developed to hold for income • Acquisition hurdle core income of 6%+ • Diversification is achieved via jurisdiction, tenant industry, and sector 13% 44% 21% 22%
Slide 9: Developments
MAS REAL ESTATE INC Developments • Core component of our portfolio • Properties developed on a pre-let basis to hold for accretive income and NAV growth • Developing usually allows for higher income yield and value growth than acquisition, but has resultant income time lags and carries inherent risk
Slide 10: Investments
MAS REAL ESTATE INC Investments Karoo return 70 • No specific target portfolio allocation 60 • Two investments made to date: Karoo Fund 50 Euro Million and Sirius, both made on an opportunistic 40 basis to benefit from the deep discounts 30 available to inherent value 20 • Both have performed except
Slide 11: Treasury
MAS REAL ESTATE INC Treasury Treasury portfolio cumulative profit • ¤180m capital was raised in February 2014 in order to achieve 6 scale for the business and to diversify the shareholder base • This capital was invested in a measured and considered manner in suitable direct property assets 5 • Due
Slide 12: Strategic objectives
MAS REAL ESTATE INC Strategic objectives Strategic Competitive advantage Progress Looking ahead objective Invested ¤175,6 million in Strong pipeline of income generating Relationships and partners current year, ¤126.9 million property ¤276m into income-generating Strong pipeline of UK and German Tra
Slide 13: Strategic objectives (cont)
MAS REAL ESTATE INC Strategic objectives (cont) Strategic Competitive advantage Progress Looking ahead objective Term sheet signed on ¤30m Gear the portfolio optimally (40-50%) to Ability to acquire then gear debt facility, further ¤30m maximise portfolio income yield on a risk improves terms agreed
Slide 14: Key metrics
MAS REAL ESTATE INC Key metrics Adjusted core income per share Adjusted NAV per share 4.0 130.0 3.0 122.5 Euro cents Euro cents 2.0 115.0 3.41 2.82 121.1 1.0 107.5 103.8 0.0 100.0 2014 2015 2014 2015 Loan to value Total assets 16.0 500 12.0 375 Euro millions Percent 8.0 16.0 250 410 310 4.0 125 4.8
Slide 15: Key metrics continued
MAS REAL ESTATE INC Key metrics continued Investment property Property locations 300 20 225 15 Euro millions Number 150 10 19 248.5 75 5 10 64.8 0 0 2014 2015 2014 2015 Size of team Median daily share volume 20 50,000 Number of shares 15 37,500 Number 10 20 25,000 40,753 5 12,500 7 1,057 0 0 2014 20
Slide 16: Investment property
MAS REAL ESTATE INC Investment property 13% 21% 44% 22% Income generating property Developments Investments Treasury June 2014 40 25 June 2015 164 84 276 173 0 175 350 525 700 Euro Million Income generating property Development property Income generating pipeline Development pipeline RESULTS PRESENT
Slide 17: Financial review
New Square - New Waverley, Edinburgh Malcolm Levy Financial review Chief Financial Officer RESULTS PRESENTATION SEPTEMBER 2015 17
Slide 18: Portfolio value
MAS REAL ESTATE INC Portfolio value New acquisitions and development capex 220 New acquisitions Capital expenditure 165 and New Waverley Euro million revaluation Karoo NAV growth 110 205.8 164.4 55 84.1 79.6 39.7 47.7 25.1 35.7 0 Income-generating Development Investments Treasury RESULTS PRESENTATIO
Slide 19: Financial position
MAS REAL ESTATE INC Financial position As at As at Euro 30 June 2015 30 June 2014 Investment property Goodwill 29,351,139 1,371,537 Income-generating property • Substantial investments have been made in the Investment portfolio period, with the portfolio growing by ¤124,7 million - Income-generating
Slide 20: Financial position continued
MAS REAL ESTATE INC Financial position continued Investments Treasury • Strong performance of Karoo Fund investment • Acquired real-estate equities portfolio of • Gains recognised of ¤19,5 million in the ¤30,0 million in mid-2014 period with the total value now of ¤67,2m • Gains of ¤4,3 million reco
Slide 21: Financial position continued
MAS REAL ESTATE INC Financial position continued Adjusted NAV per share 125 0.5 119 8.4 Euro cents 0.9 113 121.2 5.9 106 3.4 3.3 3.9 1.3 103.8 100 2014 Cash Adjusted Income Development Investments Treasury FX gains Structural 2015 dividend core income generating FV FV FV costs FV RESULTS PRESENTATIO
Slide 22: Income distribution
MAS REAL ESTATE INC Income distribution Sixteen months Year ended 30 Euro ended 30 Change in accounting policy June 2015 June 2014 • The group has early adopted of IFRS 9: Financial Instruments with initial application 1 July 2014, as a Rent and service charges 9,323,156 5,247,429 result of the recl
Slide 23: Profit analysis
MAS REAL ESTATE INC Profit analysis Adjusted core income 6 4.5 Euro million 3 5.6 4.7 1.5 2.5 0.9 1.1 0.6 0 -0.1 -0.4 -1.5 Income-generating Development Investments Treasury and corporate 2014 2015 RESULTS PRESENTATION SEPTEMBER 2015 23
Slide 24: Portfolio review
Chippenham Jonathan Knight Portfolio review Chief Investment Officer RESULTS PRESENTATION SEPTEMBER 2015 24
Slide 25: Income generating property
MAS REAL ESTATE INC Income generating property Portfolio WALT Glasgow (SL) Bruchsal Chippenham (CL) Properties pre new acquisitions Zurich Glasgow (BL) • Majority of assets performing in line with expectation Heppenheim • Fixed increase in Aldi portfolio rent in January 2015 Gotha Donauschingen • Gr
Slide 26: Developments
MAS REAL ESTATE INC Developments Development Milestones New Waverley, New Waverley, Langley Park, Milestones Edinburgh Edinburgh North St Qtr, Lewes Chippenham Phase 1 Phase 2 Planning þ 2015 2016 2016 Pre-let / sale þ 2015/2016 2016 2016 Construction start þ 2016 2016 2017 Completion 2016-2018 2
Slide 27: New Waverley, Edinburgh
MAS REAL ESTATE INC New Waverley, Edinburgh • Construction under way on 3 pre- let hotels with 400 rooms and 8 retail units with construction completing in Q1 2016 for the two Whitbread and Q4 2016 for the Adagio • Completed purchase of remaining land for phase one • Phase 2 pre-letting underway wit
Slide 28: North St Quarter, Lewes
MAS REAL ESTATE INC North St Quarter, Lewes • Extensive community engagement and consultation completed • Designs adjusted to reflect input from the local community • Planning application submitted in March 2015 • Due to size and sensitive location of the scheme (South Downs National Park), there ha
Slide 29: Langley Park, Chippenham
MAS REAL ESTATE INC Langley Park, Chippenham • Acquired 19 hectare site in Chippenham • Split into two sections, development and income- generating • Re-working existing food store and residential planning consent on development section, where we are focused on increasing residential element in line
Slide 30: Pipeline
MAS REAL ESTATE INC Pipeline Income generating property pipeline Development pipeline ¤276 million with >7% core income ¤173 million Retail, Hanover, Germany 10 Food retail, sale & leaseback, Germany 56 Woking, UK 22.5 Discount food retail sale & leaseback, Germany 26 Mixed retail, Germany 30 Neighb
Slide 31: Outlook
Jonathan Knight Outlook Chief Investment Officer RESULTS PRESENTATION SEPTEMBER 2015 31
Slide 32: Macro outlook
MAS REAL ESTATE INC Macro outlook Eurozone • German domestic demand continues to be strong despite lingering concerns on the European periphery • Continued quantitative easing is likely to result in depressed interest rates in the near term - taking advantage of this is one of our key strategic obje
Slide 33: Market positioning
MAS REAL ESTATE INC Market positioning Eurozone Switzerland United Kingdom • Focus on long leases, low risk • Passive approach with focus • Development and asset tenants for positive real returns elsewhere. Will consider if management of the portfolio • Acquire assets with active we feel the asset i
Slide 34: Closing comments
Closing comments ADJUSTED NAV PER SHARE INCREASED ADJUSTED CORE IMPROVED Final distribution of €6 445 604, or 66% GROWTH 858% INCREASE 16,8% TO INCOME PER MEDIAN DAILY FUNDING 2,20 euro cents per share based on the shares in issue at year end, bringing annual SHARE REACHED IN RENTAL SHARE VOLUME IN
Slide 35: 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