Blackstone Inc. · NYSE:BX
Blackstone — Blackstone Property Partners Europe Holdings — Morgan Stanley Fixed Income Real Estate Conference (October 2020)
39 slides from Blackstone's conference presentation, October 2020
Slide 1: Blackstone Property Partners Europe Holdings Investor Presentation
Blackstone Property Partners Europe Holdings Investor Presentation Morgan Stanley Fixed Income Real Estate Conference October 2020
Slide 2: Important Disclosure Information
Important Disclosure Information This document has been prepared by Blackstone Property Partners Europe Holdings S.à r.l. (“BPPEH”, the “Issuer”) solely for informational purposes. For the purposes of this notice, the presentation shall mean and include any slides that precede this notice, the oral
Slide 3: Important Disclosure Information (Cont'd)
Important Disclosure Information (Cont’d) Estimates/Targets. Any estimates, targets, forecasts, or similar predictions or returns set forth herein are based on assumptions and assessments made by the Issuer that it considers reasonable under the circumstances as of the date hereof. They are necessar
Slide 4: Introduction to BPPEH
Introduction to BPPEH
Slide 5: BPPEH invests in high-quality, well-located Core+ real estate assets across Europe
Overview of BPPEH BPPEH invests in high-quality, well-located Core+ real estate assets across Europe Overview & Strategy ▪ Focused on large, high-quality, substantially stabilised assets in major European markets and key gateway cities ─ Primary sectors include logistics, residential, and office ─ L
Slide 6: Selected BPPEH Assets
Selected BPPEH Assets BPPEH 5
Slide 7: Key Updates
Key Updates Portfolio Capital Structure ▪ Further portfolio growth and diversification ▪ Prudent capital structure ─ €6.2B GAV (€6.5B pro forma for acquisitions subsequent to 30 June 2020), up from €5.4B in December 2019 ─ 48% net LTV ─ 553 high-quality, well-located assets across 12 countries ─ 1.6
Slide 8: COVID-19 Impact
COVID-19 Impact Despite the global challenges caused by COVID-19, we believe BPPEH is well-positioned Q2 Rent Collections vs. Sector % of GAV Typical Rates Commentary ▪ Has generally proven resilient to date ▪ Portfolio expected to benefit from the acceleration in e-commerce Logistics 54% (4) p.p. ▪
Slide 9: Portfolio Overview
Portfolio Overview
Slide 10: BPPEH Portfolio Overview
BPPEH Portfolio Overview Large, diversified portfolio focused on logistics, residential, and office assets in Europe’s key markets 553 €6.2B 95% 4-Yr Assets GAV Occupancy WALL(1) Sector Allocation Geographic Allocation Other(2) 1% Poland 4% Italy Office 4% 17% Spain 6% Nordics(2) 12% Germany 41% Log
Slide 11: Portfolio Evolution
Portfolio Evolution Increased scale and diversification GAV by Sector (€B) GAV by Country (€B) 6.5 6.5 6.2 6.2 5.4 5.4 4.4 4.4 4.0 4.0 (1) (1) 31-Dec-18 30-Jun-19 31-Dec-19 30-Jun-20 Pro Forma 31-Dec-18 30-Jun-19 31-Dec-19 30-Jun-20 Pro Forma Logistics Residential Office Germany France Netherlands N
Slide 12: Logistics Portfolio
1 Logistics Portfolio High-quality logistics portfolio comprising 102 properties across 12 countries Key Metrics Geographic Allocation Other(1) 2% Italy Spain 4% €3.4B 3.4M 5% Netherlands 5% Germany GAV Square Metres 28% Poland 7% 96% 3.9-Yr Nordics(1) 22% France Occupancy WALL 28% Note: Geographic
Slide 13: Logistics Market Overview
1 Logistics Market Overview Robust fundamentals across BPPEH’s logistics markets Take-Up Continues to Outpace Completions(1) 30 Million sqm 25 21.3 21.3 20.1 20 18.3 17.4 15.6 14.5 13.2 14.0 15 11.2 11.6 12.1 12.0 10 7.1 6.9 7.7 5.0 5.0 5 0 2012 2013 2014 2015 2016 2017 2018 2019 H1'20 Annualised Co
Slide 14: Logistics Market Overview: E-Commerce Penetration
1 Logistics Market Overview Accelerating online sales penetration across France and Germany with meaningful catch-up potential E-Commerce Penetration E-Commerce Sales % of Total Sales €B 30% 9.0 8.5 +50% 25% 8.0 7.5 YoY 25% 7.0 +37% YoY 20% 6.0 5.7 +26% 5.5 5.1 YoY 15% 5.0 15% 14% 13% 4.0 4.0 10% 10
Slide 15: Residential Portfolio
2 Residential Portfolio Prime residential portfolio in Germany and the Netherlands Key Metrics Geographic Allocation Utrecht Rotterdam 1% 3% Other Germany(2) 6% €1.7B 6.0K GAV Residential Units Amsterdam 33% Berlin 56% 87% 443 Occupancy(1) Properties Note: Geographic allocation based on GAV. There c
Slide 16: Residential Market Overview
2 Residential Market Overview Strong demographic trends in Amsterdam and Berlin driving underlying rental growth 5-yr Population CAGR(1) Rental Growth € psm 4% Amsterdam 1.5% Rent CAGR 26 (’16-H1’20) 24.8 24 1.2% 1.1% 22 1.0% 9% Berlin 1.0% 0.9% Rent CAGR (’16-H1’20) 20 19.3 0.7% 18 16 0.5% 0.3% 14
Slide 17: Office Portfolio
3 Office Portfolio Eight high-quality office assets located in dynamic, innovation-focused cities across Europe Key Metrics Geographic Allocation Rome 11% €1.1B 138K Berlin 24% GAV Square Metres Barcelona 21% 93% 3.7-Yr Munich Paris 23% Occupancy WALL 21% Note: Geographic allocation based on GAV. Th
Slide 18: Office Market Overview
3 Office Market Overview Vacancy rates and rental growth impacted by COVID-19 but remain attractive relative to historical levels Vacancy Rate Rental Growth Prime rents, indexed to 100 12% 180 10% 160 8% 140 6% 120 4% 100 2% - 80 2012 2013 2014 2015 2016 2017 2018 2019 H1'20 2012 2013 2014 2015 2016
Slide 19: Capital Structure Summary
Capital Structure Summary
Slide 20: Capital Structure
Capital Structure Robust capital structure consisting primarily of unsecured notes Key Metrics Capital Structure Summary Interest WAM(2) €M Rate(1) (Years) 48% BBB Unsecured Notes Acquisition Facilities €2,850 217 1.6% 1.5% 4.6 2.9 (stable outlook) Net LTV S&P Credit Rating Mortgage Loans(3) 65 3.1%
Slide 21: Debt Summary
Debt Summary Strong debt profile consisting almost entirely of fixed rate unsecured debt Debt by Type Fixed vs. Floating Secured vs. Unsecured Mortgage Loans RCF Floating Secured Acquisition 2% 1% Swapped to 8% 2% Facilities Fixed 7% 2% Unsecured Fixed Notes 90% Unsecured 90% 98% Note: There can be
Slide 22: Debt Maturity Profile
Debt Maturity Profile Staggered maturity profile with only €65M maturing in December 2020 and no maturities in 2021 Interest 3.1% 1.4% 0.8% 2.0% 2.1% 1.8% Rate(1) €M 800 €717 700 €678 €600 €600 600 €500 500 400 300 200 100 €65 – 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Unsecured Notes Acqui
Slide 23: Credit Facilities
Credit Facilities RCF and acquisition facilities provide operational flexibility between bond issuances BPPEH BPPEH Revolving Credit Facility Acquisition Facilities Amount €600M €1.8B Pricing(1) E + 1.00% E + 1.40%(2) Maturity 5 years 3 years Security / Collateral Unsecured Unsecured Committed / Unc
Slide 24: Blackstone Management Platform
Blackstone Management Platform
Slide 25: Blackstone Management Platform
Blackstone Management Platform Blackstone is a leading asset manager globally and has an €87B European real estate portfolio Leading Global Asset Manager Global Integrated Platform Ensures Maximum Experience and Knowledge Transfer ▪ 30+ year investment record ▪ A+ credit ratings(1) 127 591 Professio
Slide 26: Blackstone European Real Estate Portfolio
Blackstone European Real Estate Portfolio Premier European real estate platform provides proprietary insight across asset classes Logistics 340M Created largest owned European logistics portfolio Square Feet Office 49M One of the largest office landlords in Europe Square Feet Residential 98k Major i
Slide 27: Active Asset Management
Active Asset Management Focus on value creation through active asset management Focus Areas Dedicated Team With Proven Track Record Lease Up or Capital Structure 43 3,600+ Re-leasing Optimisation Asset Management FTEs within Professionals in Operating Platforms Europe Creation of Physical Additional
Slide 28: Beyond Returns: Investing With Purpose to Make an Impact
Beyond Returns: Investing With Purpose to Make an Impact Strengthening the communities in which we live and work Environmental Social Governance ▪ Reducing water and energy usage across ▪ Focused on increasing diversity across ▪ Encouraging portfolio companies to our portfolio Blackstone and portfol
Slide 29: Responsible Investing: ESG Highlights
Responsible Investing: ESG Highlights BPPEH is committed to being a responsible investor, and we look forward to advancing our important ESG initiatives Office ▪ Implementing works across our office portfolio in order to improve energy efficiency, with the aim of achieving environmental certificatio
Slide 30: Key Highlights
Key Highlights
Slide 31: Key Highlights
Key Highlights 1 Large, Diversified Portfolio ▪ High-quality €6.2B portfolio concentrated in the European logistics, residential, and office sectors ─ €6.5B pro forma for acquisitions subsequent to 30 June 2020 ▪ Well-located assets in markets with strong fundamentals (73% in Germany, France, and th
Slide 32: Appendix – Supplemental Materials
Appendix – Supplemental Materials
Slide 33: BPPEH Structure
BPPEH Structure Wholly owned by BPPE, a perpetual life investment vehicle ▪ Open-ended investment vehicle Simplified Group Structure ▪ Quarterly closings expected, providing additional growth capital Limited Partners (“L.P.”) ▪ Near-permanent capital G.P. / Manager BPPE Overview ─ No legal obligatio
Slide 34: Key Metrics
Key Metrics Total/ Logistics Residential Office Weighted Avg. Number of Assets # 102 443 8 553 GLA kSQM 3,432 438 138 4,008 GAV €M 3,361 1,736 1,081 6,177 Occupancy Rate % 96% 87%(1) 93% 95% WALL Years 3.9 n/a 3.7 3.8(2) NOI Yield(3) % 4.8% 2.2% 3.0% 3.8% : Note: All BPPEH metrics are calculated at
Slide 35: Key Metrics by Sector
Key Metrics by Sector Key Metrics 30-Jun-20 31-Dec-19 LfL Change(1) Logistics GAV (€m) 3,361 2,752 +0.5% GLA ('000s) 3,432 2,958 – Economic Occupancy (%) 96% 94% +133 bps Physical Occupancy (%) 95% 94% +133 bps WALL (years) 3.9 4.2 (0.3) years Passing Rent (€/sqm/year) 51 50 +0.3% Residential GAV (€
Slide 36: Recent Acquisition: French and German Logistics Portfolio
Recent Acquisition: French and German Logistics Portfolio BPPEH acquired a high-quality last mile logistics portfolio concentrated in prime infill locations within France and Germany for a gross purchase price of €271 million Investment Overview Portfolio Map ▪ 28 assets(1) comprising 202k square me
Slide 37: Summary Consolidated Balance Sheet
Summary Consolidated Balance Sheet Assets as of 30-Jun-2020 Capital, Reserves and Liabilities as of 30-Jun-2020 €M €M Fixed assets 5,580.0 Capital and reserves 1,189.2 Tangible fixed assets 5,576.5 Land and buildings 5,576.5 Provisions 4.1 Intangible assets 3.5 Creditors 4,920.6 Unsecured notes 2,88
Slide 38: Summary Consolidated Profit & Loss Account
Summary Consolidated Profit & Loss Account For the six months ended 30-Jun-2020 €M Net turnover 115.8 Other operating income 25.9 Other external expenses (11.9) Value adjustments (60.2) Other operating expenses (38.2) Other interest receivable and similar income 1.4 Other interest and similar income
Slide 39: Definitions
Definitions Term Definition NOI annualised for investments acquired during the period, adjusted to exclude annualised rent abatements and non-recurring items and Adjusted NOI include rent top-ups provided by sellers The Blackstone Group Inc. or, as the context may require, one or more funds, managed