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Investor Presentation November, 2009. Profile Independent property company, founded in 1930 Dutch REIT status Property portfolio: ± 2.5 bn Activities.

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Presentation on theme: "Investor Presentation November, 2009. Profile Independent property company, founded in 1930 Dutch REIT status Property portfolio: ± 2.5 bn Activities."— Presentation transcript:

1 Investor Presentation November, 2009

2 Profile Independent property company, founded in 1930 Dutch REIT status Property portfolio: ± 2.5 bn Activities in Europe and the USA 3 activities to create value: a) active management of shopping centers, b) smart timing of acquisitions and sales of offices and residential properties and c) project development ± 85 properties; average size ± EUR 30 mln Market cap.: ± 1.4 bn Free float: : ± 95% High dividend yield (± 7 %) Pay-out ratio: 95% Included in major indices: AEX, EPRA, GPR, MSCI 2

3 Strategy rebalanced

4 Financial objectives Stable growth direct result and dividend Pay-out ratio 85-95% direct result Maintaining solid balance sheet ratios; solvency between 55% - 65% 4

5 Strategy: value creation Investment in and management of shopping centres: – active management Investment in offices and residential complexes: – timing In-house project development: – cost price 5

6 Strategy: risk diversification Diversifying risk over countries and asset classes; Selection of mature, stable, liquid and professional property markets 6

7 Market approach Local knowledge and presence: – experienced local teams in all countries/regions In-house property management: – direct relations with tenants and markets In-house market research: – timing of acquisitions and sales is supported by in-house market analyses 7

8 Ambitions and plans Stable growth of direct result and dividend by Value creation through – Active management of the shopping centres by in-house experts => 50-60% – Smart timing of acquisitions and sales of office buildings and residential projects, based on in-house market analyses => 30-45% – Project development => 5-10% Risk diversification by – Spread of assets over 6 countries in Europe and 3 regions in the USA and over 3 sectors Portfolio size per country – > EUR 400 mln; growth in the UK, France and Spain (opportunities in other countries also pursued) – Sale of projects < EUR 20 mln Sector specialisation per country/region – Sale of industrial/logistic properties over time 8

9 Financials

10 2009 Q3 in a nutshell Direct result: EUR 85.8 mln (+ 6 %) Direct result per share: EUR 3.82 (+ 5 %) Loss: EUR 106.5 mln Loss per share: EUR 5.20 Net Asset value: EUR 73.20 (- 13 %) Real Estate portfolio: EUR 2,412 mln (-9%) Equity: EUR 1,672 mln (- 10 %) Negative revaluation: 8.3 % EUR 4.65 of dividend paid (or stock option) Solvency unchanged at 69% San Antonio development continues as planned Succesful lettings achieved in Paris and Washington DC 10

11 Profit (x 1 mln) 9 m 2009 9 m 2008 2008 Direct result85.8 80.9 109.4 Indirect result- 192.3 - 15.6 -100.6 Profit- 106.5 65.3 8.8 Minority interest- 3.0 - 6.4 - 8.3 Profit for shareholders- 109.5 58.9 0.5 11

12 Direct result (x 1 mln) 9 m 20099 m 20082008 Gross rental income124.6 122.7 168.3 Other income2.7 2.4 3.4 Operating costs- 16.5 - 13.1 - 19.7 Interest costs- 10.8 - 16.9 - 23.6 Other financial- 1.3 - 1.7 General costs- 11.3 - 10.8 - 14.5 Taxes on result- 1.6 - 2.1 - 2.8 Direct result85.8 80.9 109.4 Minority interest- 5.3 - 7.1 Direct Result Shareholders80.5 75.6 102.3 12

13 Net rental income per country ( x 1 mln) 9 m 20099 m 20082008 Total108.1 109.6 148.6 Belgium17.8 17.0 22.9 Finland21.1 21.5 29.5 France2.4 8.4 11.2 The Netherlands19.1 18.4 24.2 Spain7.4 8.1 10.4 United Kingdom13.1 14.7 19.8 U.S.A.27.2 21.5 30.6 13

14 Balance sheet (x 1 mln) 2009 Q320082007 Total assets2,606.32,823.22,803.1 Interest bearing debt long- 568.2- 715.6- 535.9 Interest bearing debt short- 174.2- 24.0- 56.7 Deferred tax liabilities- 124.7- 151.8- 163.2 Other liabilities- 66.9- 71.6- 74.0 Equity1,672.31,860.21,973.3 14

15 Investments and Equity 15

16 Equity in % of total assets (before distribution of dividend) 16

17 Interest rate sensitivity 2009 Floating rate loans 42% of debt (2008: 75% and 2009 H1: 73%) Average interest period-end at 3.3% (2008: year end 3.7% and 2009H 1: 2.2%) 0.5% change in interest rates EPS change: 0,07 (or 1.4% of DR) 17

18 Currency sensitivity 2009 Q3 Hedge on investments (end of period) - USD 64% (2008: 68%) - GBP 65% (2008: 61%) A change of 10% on year-end exchange rates has an impact of EUR 1.57 (or 2.1%) on the NAV/Share On earnings: a change of 10% of average exchange rates (USD+GBP) has an impact of EUR 0.17 (or 3.5%) on the Direct Result 18

19 Sound financial situation Low gearing: 69 % solvency (equity / debt + equity) or 29% Loan To Value Solid ratios maintained after negative revaluation Q3 Wereldhave is in top 5 of listed European Property Cies with the lowest gearing Diversified tenant base EUR 350 mln of committed credit facilities available 19

20 Net asset Value / Share Price 20

21 Direct Result and dividend per share Growth in % IFRS 199819992000200120022003 20042005200620072008 DR2.78.117.412.18.30.1 p.m.-1.7-3.0-5.1+1.0 Dividend03.413.26.57.31.1+ 1.1 0 21

22 Portfolio

23 Geographical distribution of investments at 30 September 2009 23

24 Distribution of investment properties (at 30 September 2009) 24

25 Revaluation of properties: 2009 Q320082007 - 8.3 %- 3.7%+5.1% Belgium- 1.9 % + 1.2%5.6% Finland- 11.8 % + 0.9%9.5% France- 11.3 %-11.1%8.2% The Netherlands - 6.4 %- 0.5%10.2% Spain- 10.0 % - 4.3%4.7% United Kingdom- 14.2 %-22.6%-3.1% U.S.A.- 6.7 % - 2.0%2.0% 25

26 Cap Rates per country, at period-end (weighted average) 2009 Q320082007 Total Portfolio6.6 %6.2%5.9% Belgium6.2 %6.1%5.8% Finland5.9 %5.3%5.1% France6.5 %6.0%5.6% The Netherlands6.5 %6.0%5.9% Spain7.1 %6.6%6.1% United Kingdom8.5 %7.9%6.6% U.S.A.6.8 %6.3%6.2% 26

27 Yield-7.3% Rent/Other -0.9% Total portfolio-8.3% Revaluation per country as per Q3 2009 27

28 2009 Q320082007 Belgium93 %92 %87 % Finland99 % France37 % 96 % The Netherlands99 %98 %97 % Spain90 %95 %99 % United Kingdom92 % 91 %92 % U.S.A.91 % 93 %92 % Total89.7 %94.7 %94.0 % Occupancy by country 28

29 2009 Q320082007 Offices82 %91 %90 % Retail98 %99 % Industrial99 %97 %95 % Residential 88 %92 % Total89.7 %94.7 %94.0 % Occupancy by sector 29

30 Development projects Managed by Wereldhave organization; No 3rd party commitments USA, San Antonio: - Phase I: 2010 – 2011; USD 190 mln (backward scheduling 6 -12 months) - Phase II: decision based on success of phase I Belgium, Nivelles: - Phase I: 2011; EUR 62 mln - Phase II: 2011 – 2015; EUR 83 mln Belgium, Tournai: - Phase I: 2011 - 2012; EUR 20 mln - Phase II: 2011 – 2012; EUR 14 mln The Netherlands, Leiderdorp: - 2012 – 2014; EUR 35 mln 30

31 Future

32 Future: 2009 - to let, to rebalance & to prepare …… Priority to focus all efforts on leasing and higher occupancy rates Successful lettings achieved in Paris and Washington At present EUR 350 mln of committed credit facilities available Well prepared to take advantage of opportunities in the market Forecast Direct Result 2009: EUR 4.85 – 4.90 per share 32

33 Future: 2010 and forwards First acquisitions, then divestment of assets < EUR 20 mln and industrial/logistic Investment opportunities especially target UK (retail), France (offices) and Spain (offices); opportunities in other countries also pursued Portfolio size per country to increase to > EUR 400 mln in the coming 5 years Completion of developments projects to contribute to results from 2011 onwards Value creation by active management of shopping center portfolio 33

34 www.wereldhave.com

35 Development Portfolio

36 Belgium, Nivelles, Shopping Center & Mixed-use area Description: Extension shopping center & Mixed-use area Size: Existing: 16,143 m2 (renovation completed) Extension I: 12,000 m2 (shopping center) 11,500 m2 (retail park) Extension II: 12,500 m2 (multi-functional) offices, apartments & hotel Sustainability: Energy saving installations Use of materials Investment: Extension shopping center and retailpark: 62 mln Adjacent area with offices, apartments, multifunctional and hotel: 83 mln Planning: Retail: 2011 Offices & multi-functional: 2011- 2012 Apartments & hotel: 2012 - 2015 36

37 Belgium, Nivelles, Shopping Center & Mixed-use area 37

38 Belgium, Tournai, Shopping Center Les Bastions Description: Extension current shopping center Size: Existing:14,178 m2 Extension: 4,500 m2 (shopping center) 10,000 m2 (retail park) 500 parkings 26 apartments Sustainability: Energy saving installations Use of materials Investment: 34 mln. Planning: Retail park phase I: 2011 – 2012 Extension shopping: 2011 – 2012 Retail park phase II: 2012 Apartments: 2012 38

39 USA, Texas, San Antonio (maps: Google Earth) 39

40 USA, Texas, San Antonio, mixed-use area Description: Mixed use area with 1,400 apartments; 20,000 m2 offices; 6,500 m2 retail and a 165 room Hotel; amphitheater; chapel Size: Land: 119 acres Sustainability: Water recycling; solar energy Investment: Total USD 330 mln, Phase I: USD 190 mln. Planning: Phase I: 532 apartments; 6,500 m2 retail; 20,000 m2 offices; hotel Completion: 2010 – 2011 40

41 Vision The concept Luxury Living Human interaction Outdoor Living Convenience Live: 1,400 residential units; 165 rooms hotel with spa Work: 20,000 m² office; 6,500 m² retail & grocer Play: 1,000 seat amphitheatre; chapel, parks, sporting facilities, trolley / tram 41

42 Hotel 42

43 Office 43

44 Residential 44

45 San Antonio, progress report USD mln Land:18 Investments as per 2009 Q3:48 (design, infrastructure, roads, start of offices) Number or m2CompletionMarket rent USDComments Offices20,0002010 Q1 21 – 22 per sqf, net Topping out in march; marketed Hotel165 rooms2011 Q2100 net Rev.PAR Management contract with Gemstone; upscale hotel Retail6,5002011 Q110 per sqf, netGrocer Apartments532 2011 Q1 – 2011 Q3 1.- per sqf netMostly apartments of 800 sqf Amenities2011 Q3Restaurant, amphitheater, fitness, chapel, trolley 45

46 Unemployment rate in %, Texas, Dallas, San Antonio (end of period; not seasonally adjusted) 46

47 Source: The Economist July 11th, 2009 Texas triangle: map 47

48 Low tax burden attracts business and people right to work state; low participation in unions Sound public finances Local government favourable to business; benefits Larger in area than any European Union country Low land prices lead to cheaper housing costs for employees Energy state: oil, coal, natural gas and wind power University of Texas with largest single campus Major airport Dallas-Fort Worth Military basis (three large ones) Electronics industry developed from defence contracts Banking industry in reasonable shape Leading trading state with the Trans-Texas Corridor from Mexico Many corporate headquarters as well as start-ups Texas triangle: Economic topics Source: The Economist, July 11th, 2009 48

49 Dallas Telecoms (Silicon Prairie) Aerospace Distribution Banking Dallas Fort Worths major international airport AT&T Austin quality of place for living, Greenest City in the US University of Texas State government High-tech cluster Dell San Antonio Military bases (3 large ones) Toyota Texas triangle: Major cities for Wereldhave Source: The Economist, July 11th, 2009 49

50 S&P/Case Schiller US home price indices, Jan 1987 – Aug 2009 50

51 51


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