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Investor presentation Q1 2010 results. Q1 10 highlights Occupancy rate stabilised Cap rates virtually unchanged Succesful refinancing of 2010 Syndicated.

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Presentation on theme: "Investor presentation Q1 2010 results. Q1 10 highlights Occupancy rate stabilised Cap rates virtually unchanged Succesful refinancing of 2010 Syndicated."— Presentation transcript:

1 Investor presentation Q1 2010 results

2 Q1 10 highlights Occupancy rate stabilised Cap rates virtually unchanged Succesful refinancing of 2010 Syndicated Term Facility Additional reletting in Paris Acquisition of shopping centre Koningshoek in Maassluis, the Netherlands for 40m. Four small assets sold in UK for 5m Completion office space San Antonio project in Q3 10 2

3 Business environment Macro picture slowly improving with GDP forecasts, producer- and consumer trust on the rise But consumer spending remained subdued in Q1 and outlook on further recovery is blurred by possible impact from Greek crisis Property markets: investment volumes gradually rising again (especially prime properties/long leases). Forced selling remains limited, for now. Prime yields stable in most- and slightly lower in some markets Letting markets: no significant improvements yet. Office markets still mostly face negative net take-up and lowering rents. Retail rents stable in good shopping centres/locations but under pressure in weaker centres/locations 3

4 Q1 2010 key figures Direct result p/s: 1.20 (-5% yoy) Total result p/s: 0.50 Revaluation portfolio: -0.5% NAV p/s: 75.19 (-11% yoy) Investment portfolio: 2,663m (+10%) Development pipeline ± 250m LTV 36% (± 37% after Maassluis-acquisition in Q2 2010) 4

5 Total result (m) Q1 10Q1 09yoy Direct result27.5 28.1 -2% Indirect result- 15.0 - 29.6 +50% Profit12.6 -1.5 - Minority interest2.0 1.9 +9% Profit for shareholders10.6 -3.3 - 5

6 Direct result (m) Q1 10Q1 09yoy Gross rental income54.053.6+1% Operational costs-17.6-17.3+2% General costs-3.2-3.1+3% Other0.6 +5% Net financial costs- 5.2-4.9+5% Taxes- 1.2-0.7-77% Direct result27.528.1-2% Minority interest-1.9 -2% Direct Result Shareholders25.626.2-2% 6

7 Gross rental income ( m) Q1 10% totalyoyl-f-l Total42.4100%+1%+1%* Belgium6.315%-3% Finland7.217%-1% France1.84%+26% The Netherlands8.019%+11%+2% Spain2.87%-1% United Kingdom5.112%-8%+9%* U.S.A.11.126%-6%-1%* 7 * in local currency

8 RetailOfficeLogisticsResi Total Q1 10 Total FY 09 Belgium99.782.6--92.092.8 Finland98.897.0--98.899.0 France100.041.8--53.337.5 The Netherlands99.293.899.9100.099.299.4 Spain74.493.6100.0-89.289.9 United Kingdom97.388.791.1- 91.3 U.S.A.79.189.8-85.488.890.2 Total Q1 1097.383.099.385.690.289.7 Total FY 0997.881.398.988.189.7 Occupancy Mar 010 8

9 Financial costs

10 Financial cost ( m) 10 Q1 10Q1 09yoy DIRIIRDIRIIRDIRIIR Interest expense-5.1-5.02% Amortized costs of loans-0.4-0.2100% Non-cash option expense convertible bonds -0.8-0.4100% Other non-cash costs-0.3-1.4-0.30%40% Interest income+0.1+0.2-50% Capitalized interest+0.5+0.425% Other non-cash income Net financial cost-5.2-2.2-4.9-1.45%57%

11 Interest rate & currency sensitivity Mar 2010 Floating rate loans 55% of debt (FY09: 38%) Average interest: 2.2% (2009: 2.6%)* 0.5% change in interest rates EPS change: 0,12 (or 2.5% of DR) Hedge on investments (end of period) - USD 62% (2009: 62%, H1 09: 68%) - GBP 60% (2009: 61%, H1 09: 66%) A change of 10% on period-end exchange rates has an impact of 1.78 (or 2.4%) on the NAV p/s On earnings: a change of 10% of average exchange rates (USD+GBP) has an impact of 0.17 (or 3.4%) on DIR p/s * On nominal basis. On IFRS basis: 2.7% (2009: 3.3%) 11

12 Indirect result

13 Indirect result ( m) Q1 010Q1 09 Revaluation-12.0-31.8 Result on sales-0.10 Deferred tax-0.53.6 Net financial-2.2-1.4 Other-- Indirect result-14.9-29.6 Shareholders-15.0-29.5 Minority interest0.1-0 13

14 Revaluation Q1 2010 14

15 RetailOfficeInd.ResiCap rate Belgium+0.1%0.0%--6.3% Finland0.0% --5.9% France0.0% --6.4% The Netherlands+0.1%0.0%+0.1%0.0%6.4% Spain0.0% -7.1% United Kingdom-0.4%-0.2%+0.5%-7.9% U.S.A.0.0% - 7.1% Cap rate6.1%7.0%7.6%7.3%6.6% Cap rate movement total portfolio -4 bps in Q1 2010 Yield movements & cap rates Q1 2010 15 Cap rate = net market rent divided by gross market value including transaction costs

16 Balance sheet & Debt profile

17 Sound Balance sheet ( m) Q1 201020092008 Total assets2,867.72,597.02,823.2 Interest bearing debt long- 553.3- 572.1- 715.6 Interest bearing debt short- 398.0- 140.8- 24.0 Deferred tax liabilities- 121.4- 119.0- 151.8 Other liabilities- 76.1- 78.6- 71.6 Equity1,718.81,686.51,860.2 NAV per share (IFRS)75.1973.7783.74 NAV per share (EPRA)80.6279.25 NNNAV per share (EPRA)72.1273.65 17

18 Debt: conservative ratios at low cost Interest bearing debt: 951m (2009: 713m) Fixed/floating: 45%/55% (2009: 62%/38%) Average cost: 2.2% (2009: 2.6%)* LTV: 36% (37% after Maassluis-acquisition; 2009: 28%) ICR: 7.0x (2009: 8.1x) ± 90m of committed credit facilities and cash available after 40m Maassluis-acquisition, dividend payment and EUR 270m refinancing of 2010 STF Wereldhave in top 5 of lowest geared listed property companies in Europe 18 * On nominal basis. On IFRS basis: 2.7% (2009: 3.3%)

19 Debt profile Pro forma after 40m Maassluis acquisition, dividend payment and refinancing 2010 STF* *STF: syndicated term facility ** on nominal basis 19

20 Development pipeline overview ProjectLocationTotal investment Capex sofar Expected net yield Estimated completion Remarks San Antonio I*Texas, US$ 190m$ 78m7.0-7.5%2010-2011offices completed in early Q3 2010 Nivelles I**Belgium 42m 6m7.0-7.5%2012Start construction in June 2010, contractor hired Tournai IBelgium 23m07.0-7.5%2012 Tournai IIBelgium 15m07.0-7.5%2012 LeiderdorpNeth. 35m 1m6.0-6.5%2012-2014 Total± 250m 61m 20 *Phase II USD 140m; decision based on success of phase I ** Phase II decision based on success of phase I and granting of permits

21 Future: 2010 and onwards Focus on increasing occupancy rate. Expiries in US and Belgian office portfolio challenging in current markets Portfolio size per country to increase to > 400m Focus on retail to increase from 50% to 50-60% Main targets: UK (retail), France (offices) and Spain (offices); opportunities in other countries also pursued Dutch portfolio: focus on next stage active management and refurbishments- /extension-plans Sale of industrial assets and assets < 20m Completion of developments projects to contribute to results from 2011 onwards 21

22 Expanding in Dutch retail Appendix I

23 23 Maassluis: De Koningshoek

24 Function:Citys dominant shopping centre Owners:Wereldhave and ASR Opening:1971 Refurb/Extension:1985 GLA:Total:20,500 m 2 W have:12,600 m 2 retail 3,900 m 2 other Catchment area:Primary:31.500persons Secundary:6.500persons Gross rent: 2.8 m Parking:1000 p.p. (owned by city) Anchor tenants:Hema, Albert Heijn, Hoogvliet, Supercoop Remarks:Plans for refurbishment & extension with 8,000 - 10,000 m2, targeting net yield of 7% 24

25 Purmerend: Eggert Function:Part of city centre retail structure Opening:1979 Refurbishment:1992 GLA:Total:20,555 m 2 Whave:19,456 m 2 retail :277 m 2 other Catchment area:Primary:78,450persons Secundary:82,100persons Gross rent: 5.0m Parking:390 p.p. (owned) Remarks:- Growing catchment area - Solid market position - Strong tenant mix with further potential 25

26 Capelle a/d IJssel: De Koperwiek Function:Citys dominant shopping centre Owners:Wereldhave and Van der Vorm Vastgoed Opening:1965 (Van der Vorm) Extension:1995 GLA:Total:22,000 m 2 W have:9,021 m 2 retail 78 m 2 other 61app. Catchment area:Primary:63,350persons Secundary:28,000persons Gross rent: 2.8m Parking:925 p.p. (owned by city) Remarks:- Above average spending power - Extension possibilities 26

27 Eindhoven: Woensel XL Function:Large district centre Owners:Wereldhave, Redevco, IEF, private investors Opening:1967 Refurb + extension:2004-2006 GLA:Total:41,000 m 2 Whave:9,858 m 2 retail 484 m 2 office Catchment area:Primary:100,800persons Secundary:133,000persons Gross rent: 3.7m Parking:1000 p.p. (not owned) Remarks: - Growing catchment area - Solid market position - Expand ownership 27

28 Roosendaal: De Roselaar Function: Part of city centre retail structure Opening:1968 Refurbishment:1996 GLA:Total:28,000 m 2 W have:12,407 m 2 retail 167 m 2 other Catchment area:Primary:77,700persons Secundary:50,000persons Gross rent: 3.5m Parking:415 p.p. (not owned) Remarks: - Expand ownership - Solid market position - Stable catchment area - Strong tenant mix with further potential 28

29 Outlook Dutch retail: markets Dutch retail market: below-average risk profile in European perspective –Rental income from retail relatively resilient: No turnover based rent: less volatility on up- and downside Rent reviews: smoothening impact due to legal framework –Supply: new developments subdued due to long planning process and physical restrictions Increasing divergence in performance of core- and secondary locations expected to continue; Wereldhave only present on core locations with well established centers 29

30 Primary shopping centres in Holland Around 53 shopping centres larger than 20.000 m 2 GLA Strong concentration around the larger cities / Randstad XL After the acquisition Wereldhave owns >13% in this segment of primary shopping centres Kronenburg Woensel XL Etten-Leur De Roselaar De Koperwiek Winkelhof Eggert 30

31 Development pipeline Appendix II

32 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: 2012 - 2015 32

33 Nivelles, Belgium 33

34 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: 2012 Extension shopping: 2012 Retail park phase II: 2012 Apartments: 2012 34

35 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 – 2011 35

36 San Antonio, progress report Number or m2 Completion Market rent USD Comments Offices20,0002010 Q3 21 – 22 per sqf, net marketed Hotel165 rooms2011 Q2 100 net Rev.PAR Management contract with Gemstone; upscale hotel Retail6,5002011 Q1 10 per sqf, net Grocer Apartments532 2011 Q1 – 2011 Q3 1.- per sqf netMostly apartments of 800 sqf Amenities2011 Q3Restaurant, amphitheater, fitness, chapel, trolley 36

37 Hotel 37

38 Office 38

39 Residential 39

40 S&P/Case Shiller home price indices (sa) 40

41 41

42 Unemployment rate, Texas (%, end of period; nsa) 42

43 Profile, objectives, strategy Appendix III

44 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 68%, UK 8% and USA 24% ± 85 properties; average size ± 30m Market cap: ± 1.3bn Free float: ± 100% High dividend yield (± 7.5 %) Pay-out ratio: 95% Included in major indices: AEX, EPRA, GPR, MSCI 44

45 Diversification of investments Mar 2010 45

46 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 46

47 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 47

48 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 48

49 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 49

50 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 50

51 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). 51

52 Historic perspective Appendix IV

53 Direct Result and dividend per share 53

54 Net asset Value / Share Price 54

55 Sector allocation (in %) 55

56 0203040506070809 Belgium9691808384879293 Finland99989099 France989496979896 38 The Netherlands9086888994979899 Spain9995929399 9590 United Kingdom99989197989291 U.S.A.96949390 89 929390 Total9694919293949590 Occupancy (in %) 56

57 0203040506070809 Belgium3. Finland- France1. The Netherlands- Spain-2.5- United Kingdom0.5- U.S.A.-4.4- Total-1.1- Revaluation (in %) 57

58 06070809Q1 10 Belgium6. Finland5. France5. The Netherlands6. Spain6. United Kingdom6. U.S.A. Total6. Cap rates (in %) 58 * = net market rent divided by gross market value including transaction costs

59 Quarterly result

60 Investments and Equity 60

61 Equity in % of total assets (before distribution of dividend) 61

62 Wereldhave: long-term outperformance vs EPRA and AEX 62

63 Investor relations: Charles Bloema tel: +31(0)703469325

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