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Investor presentation March 2010. FY 09 key figures Direct result p/s: 4.93 (+0.2%) Total result p/s: -5.07 Revaluation portfolio: -9.1 % NAV p/s: 73.77.

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Presentation on theme: "Investor presentation March 2010. FY 09 key figures Direct result p/s: 4.93 (+0.2%) Total result p/s: -5.07 Revaluation portfolio: -9.1 % NAV p/s: 73.77."— Presentation transcript:

1 Investor presentation March 2010

2 FY 09 key figures Direct result p/s: 4.93 (+0.2%) Total result p/s: Revaluation portfolio: -9.1 % NAV p/s: (-12%) Investment portfolio: 2,418m (-9%) Development pipeline ± 250m LTV 29% (± 36% after 220m acquisition in Feb 2010) Unused credit facilities > 100m (March 2010) Dividend proposal: 4.65 cash (or 3.20 cash in stock) 2

3 FY 09 highlights New executive board in place Strategy update: balanced growth in core countries and shopping centres, sale of industrials and assets <20m Issue of 230m convertible bond Succesful relettings in Paris, Washington DC and Manchester Development pipeline continues as planned Acquisition of four shopping centres in the Netherlands for 220m in February

4 Total result (m) yoy Direct result % Indirect result % Profit Minority interest Profit for shareholders

5 Direct result (m) yoy Gross rental income % Operational costs % General costs % Other0.8 0% Net financial costs % Taxes % Direct result % Minority interest % Direct Result Shareholders % 5

6 Country highlights

7 US Recession ended in Q3 09, mainly due to stimulus-package induced consumer spending. But recovery is fragile… Office markets in general: vacancy up, rents lowering, prime yields % Washington performing above-average in terms of vacancy and rents San Diego: net take-up turned positive in H2 09, rents stable in centre, high vacancy in suburbs. Prime yields 7-7.5% San Antonio: slight take-up recovery in Q4; vacancy and rents both marginally up Housing market: seems to have bottomed out at year-end; San Antonio less impacted by downturn Source: OECD, Nov 09 Portfolio: $ 871m Development pipeline: $ m Revaluation: -12.3% Cap rate: 7.1% Occupancy: 90.2% Gross rental income: $ 70.8m Rent l-f-l: -1.6% (loc. cur.) GDP Consumer spending CPI Unemploy ment

8 Finland Economy hit hard, first signs of improvement at year-end Sunday-opening introduced in Dec Retail vacancy rate rising in suburbs; Helsinki at 2.0% with stable outlook Rents stabilized in shopping centres and increased on high-street Prime retail yields at % Itakeskus holding up in competitive environment GDP Consumer spending CPI Unemploy ment Source: OECD, Nov 09 Portfolio: 520m Revaluation: -12.2% Cap rate: 5.9% Occupancy: 99.0% Gross rental income: 30.6m Rent l-f-l: -1.8% Rent-to-sales ratio: 7.4% 8

9 Belgium Economy : subdued recovery Shopping centres ± recession proof with footfall decreasing but tenant turnover stabilizing Big box retailing and secondary locations suffering Shopping centre rents stabilized but key- money lowered Low shopping centre density; prime yields % Brussels office market: increasing vacancy rate, lowering rents. Prime office yields now > 6%-level GDP Consumer spending CPI Unemploy ment Source: OECD, Nov 09 Portfolio: 382m Development pipeline: 80m Revaluation: -1.8% Cap rate: 6.2% Occupancy: 92.8% Gross rental income: 26.2m Rent l-f-l:+3.5% 9

10 The Netherlands Economic recovery mainly export driven for now Consumer spending bottomed out in Q4 Retailers in core locations holding up while secondary locations suffer Vacancy rates up, rental levels stabilizing or lowering in some locations Prime retail yields % Strong shopping centre performance Office market take-up -40%..., recovery not expected in short-term Vacancy rates rising, rents continue to slide (-5% in 2009) GDP Consumer spending CPI Unemploy ment Source: OECD Portfolio: 375m Development pipeline: 35m Revaluation: -6.4% Cap rate: 6.5% Occupancy: 99.4% Gross rental income: 29.0m Rent l-f-l: +4.4% 10

11 Gross rental income ( m) 2009% totalyoyl-f-l Total %-1%-4%* Belgium26.216%+4% Finland30.618%-2% France5.43%-57% The Netherlands29.018%+4% Spain11.47%-3% United Kingdom18.711%-13%-2%* U.S.A %+17%-2%* 11 * in local currency

12 RetailOfficeLogisticsResiTotal Belgium Finland France The Netherlands Spain United Kingdom U.S.A Total Occupancy 12

13 Financial costs

14 Financial cost ( m) yoy DIRIIRDIRIIRDIRIIR Interest expense % Amortized costs of loans % Non-cash option expense convertible bonds % Other non-cash costs-1.1 0% Interest income % Capitalized interest % Other non-cash income0.1- Net financial cost %+25%

15 Interest rate sensitivity Dec 09 Floating rate loans 40% of debt (FY08: 75% and Q3 09: 42%) Average interest: 2.6% (2008: 3.7% and Q3 09: 2.9%) 0.5% change in interest rates EPS change: 0,07 (or 1.4% of DR) 15

16 Currency sensitivity Dec 09 Hedge on investments (end of period) - USD 62% (2008: 68%, H1 09: 68%) - GBP 61% (2008: 61%, H1 09: 66%) A change of 10% on year-end exchange rates has an impact of 1.66 (or 2.3%) on the NAV p/s On earnings: a change of 10% of average exchange rates (USD+GBP) has an impact of 0.20 (or 4%) on DIR p/s 16

17 Indirect result

18 Indirect result ( m) Revaluation Result on sales Deferred tax Net financial Other Indirect result Shareholders Minority interest

19 Revaluation Dec 09 19

20 RetailOfficeInd.ResiTotal Belgium5.8%6.9%--6.2% Finland5.9%6.3%--5.9% France7.5%6.2%--6.4% The Netherlands5.9%7.5%7.4%-6.5% Spain7.5%6.7%7.5%-7.1% United Kingdom8.4%8.0%8.9%-8.1% U.S.A.7.8%7.0%-7.5%7.1% Total6.1%7.0%7.5% 6.7% Cap rate total portfolio +4 bps in Q4, +49 bps in FY 09 Cap rates Dec Cap rate = net market rent divided by gross market value including transaction costs

21 Cap rates bandwidth (high – w. average –low) 21 BelFraFinNethSpaUKUS

22 Top 10 largest assets Market value Dec 09 (m) Helsinki, FinRetail19.2% Liege, BelRetail6.0% Paris, FraOffice5.0% San Diego, USOffice4.7% Arnhem, NLRetail4.5% San Diego, USOffice3.9% Washington, USOffice3.6% Leiderdorp, NLRetail2.3% Manchester, UKOffice2.3% Washington, USOffice2.3% Locationsector% portfolio 22

23 Top 10 largest tenants Gross rent Dec 09 (m) % total rentsector 3.8%Retail trade 3.5%Government 3.1%Legal 2.6%Energy 1.7%Logistics 1.6%ICT 1.3%Engineering 1.3%Financial 1.2%Wholesale trade 1.2%Financial 23

24 Development pipeline overview ProjectLocationTotal investment Capex sofar Expected net yield Estimated completion Remarks San Antonio I*Texas, US$ 190m$ 78m % offices completed in May 2010 Nivelles I**Belgium 42m 6m %2012Start construction in June 2010, retail park not (yet) approved Tournai IBelgium 23m % Start construction in Q Tournai IIBelgium 15m % LeiderdorpNeth. 35m 1m % Total± 250m 61m 24 *Phase II USD 140m; decision based on success of phase I ** Phase II decision based on success of phase I and granting of permits

25 Balance sheet & Debt profile

26 Sound Balance sheet ( m) Total assets2,597.02,823.22,803.1 Interest bearing debt long Interest bearing debt short Deferred tax liabilities Other liabilities Equity1,686.51,860.21,

27 Shareholder equity ( m) Shareholder equity Dec 081,740.3 Net result Other movements10.1 Dividend-73.8 Shareholder equity Dec 091,569.6 NNAV per share % yoy Deferred tax per share5.59 NAV per share % yoy 27

28 Debt: conservatively financed at low cost Interest bearing debt: 713m (FY08: 740m) Fixed/floating: 62/38% (FY08: 25%/75%) Average cost: 2.6% (FY08: 3.7%) LTV: 28% (36% after recent acquisition; FY08: 27%) ICR: 8.5x (FY08: 6.3x) > 100m of committed credit facilities and cash available after recent 220m acquisition Wereldhave in top 5 of lowest geared listed property companies in Europe 28

29 Debt profile Dec 09 29

30 Debt profile pro forma after 220m Dutch acquisition and refinancing STF* * STF: syndicated term facility 30

31 Future: 2010 and onwards Focus on further increasing occupancy rate Portfolio size per country to increase to > 400 mln Main targets: UK (retail), France (offices) and Spain (offices); opportunities in other countries also pursued Sale of industrial assets and assets < 20m Focus on retail to increase from 46% to 50-60% Completion of developments projects to contribute to results from 2011 onwards 31

32 Development pipeline Appendix I

33 Nivelles, Belgium Description: Extension shopping center & Mixed-use area Size: Existing: 16,195 m2 (renovation completed) Extension I: 12,000 m2 (shopping center) Extension II: offices, apartments & hotel Sustainability: Energy saving installations Use of materials Investment: Extension shopping center: 42 mln Planning: Shopping centre: 2012 Other functions:

34 Nivelles, Belgium 34

35 Belgium, Tournai Description: Extension current shopping center Size: Existing:15,540 m2 Extension: 4,500 m2 (shopping center) 10,000 m2 (retail park) 500 parkings 26 apartments Sustainability: Energy saving installations Use of materials Investment: 38m Planning: Retail park phase I: 2011 – 2012 Extension shopping: 2011 – 2012 Retail park phase II: 2012 Apartments:

36 San Antonio, Texas, USA 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 330m Phase I: USD 190m Planning: Phase I: 532 apartments; 6,500 m2 retail; 20,000 m2 offices; hotel Completion: 2010 –

37 San Antonio, progress report Number or m2 Completion Market rent USD Comments Offices20, Q2 21 – 22 per sqf, net marketed Hotel165 rooms2011 Q2 100 net Rev.PAR Management contract with Gemstone; upscale hotel Retail6, Q1 10 per sqf, net Grocer Apartments Q1 – 2011 Q3 1.- per sqf netMostly apartments of 800 sqf Amenities2011 Q3Restaurant, amphitheater, fitness, chapel, trolley 37

38 Hotel 38

39 Office 39

40 Residential 40

41 S&P/Case Shiller home price indices (sa) 41

42 42

43 Unemployment rate, Texas (%, end of period; nsa) 43

44 Profile, objectives, strategy Appendix II

45 Wereldhave profile Independent property company, founded in 1930 Dutch REIT status Property portfolio: ± 2.7 bn Development pipeline max. 10% of assets Present in Continental Europe 64%, UK 9% and USA 25% ± 85 properties; average size ± 30m Market cap.: ± 1.4bn Free float: : ± 100% High dividend yield (± 7 %) Pay-out ratio: 95% Included in major indices: AEX, EPRA, GPR, MSCI 45

46 Diversification of investments Dec 09 46

47 Financial objectives Stable growth direct result and dividend… … while maintaining solid balance sheet ratios; solvency between 55% - 65% Pay-out ratio 85-95% of direct result 47

48 Strategy: value creation Investment in and management of shopping centres: –in-house active management Investment in offices and residential complexes: –timing acquisitions and sales In-house property development: –cost control –quality control –retaining development margin 48

49 Strategy: risk management Portfolio well diversified over 7 countries and 3 sectors Only mature, liquid and professional property markets Diversified tenant base Portfolio renewal: development max. 10% of assets Solid balance sheet: solvency 55-65% Currency exposure hedged 49

50 Market approach Local knowledge and presence: –experienced local teams in all countries/regions In-house property management and development: –direct relations with tenants and markets In-house market research: –timing of acquisitions and sales supported by in-house market analyses 50

51 Sustainability I 1998: In-house development and letting of XX-building (Delft, NL) 2003: Formal introduction business principle: focus on sustainable, innovative property products providing enhanced user value, lower life-cycle costs and reduced environment impact 2003: Procedure sustainable investment as internal guideline 2006: First privately developed LEED Platinum office building (Mc Kinney) realized in Dallas, Texas 2008: Internal sustainability manual compiled, defining objectives and plans of action 2009: start carbon footprint evaluation; stimulation sustainability of suppliers; cooperation contract with construction companies; appointment of sustainability development manager 51

52 Sustainability II 2009: choice to invest in inner-city areas offering ample public transport and variety of facilities 2010 and onwards: in development of new buildings, sustainability starts in initiation phase. Performance criteria continually tightened. Core themes: energy, water, materials, vicinity, flexibility and interior environment (health and comfort). Example: new 3000 sqm project on Ypenburg industrial park (2009) Example: BREEAM sustainability-upgrade Ilot-Kleber, Paris (2009) * Objective: BREEAM rating GOOD on all new development projects Sustainability themes in property management: green electricity, accessibility physically challenged, assessing energy labels, sustainability brochures for tenants * Examples of measures taken: sustainable cooling: ground water combined with ice storage; upgrade to an energy-efficient heating system; high-frequency lighting; cradle-to-cradle carpeting (Desso). 52

53 Historic perspective Appendix III

54 Direct Result and dividend per share 54

55 Net asset Value / Share Price 55

56 Sector allocation (in %) 56

57 Belgium Finland France The Netherlands Spain United Kingdom U.S.A Total Occupancy (in %) 57

58 Belgium Finland France The Netherlands Spain United Kingdom U.S.A Total Revaluation (in %) 58

59 Belgium Finland France The Netherlands Spain United Kingdom U.S.A Total Cap rates (in %) 59 * = net market rent divided by gross market value including transaction costs

60 Quarterly result

61 Investments and Equity 61

62 Equity in % of total assets (before distribution of dividend) 62

63 Wereldhave: long-term outperformance vs EPRA and AEX 63

64 Investor realtions: Charles Bloema tel: +31(0)


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