Presentation is loading. Please wait.

Presentation is loading. Please wait.

Presentation to Trafford Centre Noteholders 30 September 2013.

Similar presentations


Presentation on theme: "Presentation to Trafford Centre Noteholders 30 September 2013."— Presentation transcript:

1 Presentation to Trafford Centre Noteholders 30 September 2013

2 Presentation to Trafford Centre Noteholders Corporate overview –David Fischel Financial details –Matthew Roberts intu Trafford Centre overview –Mike Butterworth Questions Appendices Page 2 Intu Properties plc This presentation includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Intu Properties plc to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any information contained in this press release on the price at which shares or other securities in Intu Properties plc have been bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future performance

3 Corporate overview David Fischel, Chief Executive

4 Page 4

5 Scale, focus and quality set Intu apart Page 5

6 Page 6 Welcome Building momentum – reinforcing our destinations Created nationwide consumer-facing brand, intu, offering an engaging and digitally-connected experience Improved financial flexibility and strengthened balance sheet Steady occupancy and letting progress Four themes

7 Leading change Providing great retail and leisure experiences Enhancing our dynamic retail and leisure destinations Digitally connected Significant benefits of nationwide brand Positioning centres as “must have” destinations for retailers Page 7

8 Financial details Matthew Roberts, Finance Director

9 Page 9 Overview of first half 2013 results Valuation up 1.0 per cent (IPD down 1.1 per cent) Underlying earnings 7.4p ( p) - impact of tenant failures offsetting rental uplifts Interim dividend of 5p NAV per share 377p £1,150m refinancing via Secured Group Structure Robust financial position: debt to assets ratio 48.6 per cent, 7.6 years average debt maturity and £250m of cash and committed facilities at half end In July raised £125m of debt on intu Midsummer Place

10 Page 10 Valuation – significant out-performance Valuation gain £70 million, +1.0% (IPD benchmark -1.1%) Market value Like-for-like surplus (deficit) £m % intu Trafford Centre1, intu Lakeside1, Manchester Arndale St David’s, Cardiff intu Eldon Square intu Potteries intu Bromley

11 Slide 11 Underlying earnings (1) Includes (2013 £2.9 million; 2012 £2.9 million) convertible bond interest charged directly to reserves in financial statements but included in the calculation of EPS

12 Like for like net rental income Rental uplifts offset by impact of tenant failures Page 12

13 Net debt to assets 48.6% Page 13 Robust financial position (1) In addition £125m of debt secured on intu Midsummer Place in July 2013

14 Page 14 New debt funding platform Flexible, ring-fenced security pool £450m 2023 £350m 2028 Term Loan £350m 2018 £1.15 b new debt Refinanced 1/3rd of Group’s debt in March 2013; significantly derisked maturities 50% loan to value achieved at competitive margins Highly successful ‘A’ rated bond issue Diversifies sources of funding Operational flexibility Blended 4.4% cost Weighted maturity extended from two to ten years on these assets BONDS Value:£2.3 b

15 Page 15 Debt maturity Weighted average debt maturity of 7.6 years Largely fixed, weighted average cost 5.2 per cent £250m of cash and committed facilities In July 2013 £125m raised on intu Midsummer Place Capex: £49m committed; £200m uncommitted (excludes major extensions) Pro forma, adjusted for 2013 refinancing31 December 2012 as reported Impact of SGS on 31 December 2012 maturity profile 30 June 2013 maturity profile

16 Slide 16 Valuation (1) Valuation of £1,750m intu Trafford Centre topped up net initial yield of 4.9% and nominal equivalent yield of 5.3% Ratio of outstanding loan note to intu Trafford Centre valuation: 42% Rent (1) Annual property income of £79.3m; ERV of £104.1m Headline rent prime ITZA psf £400 Occupancy (2) Current occupancy rate of 96% by rent as at 30 June 2013 intu Trafford Centre – key metrics 30 June 2013 Site location (1)Excludes Barton Square and other land holdings (2)Occupancy defined as passing rent of let and under offer units expressed as a percentage of the passing rent of let and under offer units plus ERV of unlet units, excluding development and recently completed properties. Units let to tenants currently in administration and still trading are treated as let and those no longer trading are treated as unlet

17 Slide 17 intu Trafford Centre operating cash flow* Year ended 30 June 2013 £m Year ended 30 June 2012 £m Rents (including turnover rent) Other income3.1 (1) 3.0 (2) Property and other costs(4.7)(3.3) Operating cash flow Net interest paid(43.6)(45.1) Net operating cash flow Source: The Trafford Centre Limited Quarterly Reports: Cash flow statement and management commentary. * Proforma cash flow basis, excluding the exceptional cash flow of REIT entry, corporation tax and interest rate floor termination (1) Excludes £0.4m of premiums received (2) Excludes £0.7m of premiums received

18 Slide 18 Debt Service Cover Ratio (DSCR) Calculated using twelve months historic cash flows June 2013 Quarterly report1.30 : 1 Components: Rental and other income less costs£76.0 million Interest payments and note amortisation£58.3 million (£43.6m interest, £14.7m amortisation)

19 Slide 19 Debt Service Cover Ratio and Interest Cover Ratio History Temporary decrease due to rent free for major tenant during store expansion

20 Page 20 Trafford Centre loan notes analysis Initial launchFebruary 2000 Second issueJuly 2005 Issue size (total)£864.5m Outstanding amount – 30 June 2013£727.6m (1) Fixed: Floating (2) ratio66% : 34% Security TrusteeDeutsche Bank Hedge counterpartiesDeutsche Bank & RBS Liquidity facilityLloyds Banking Group Cash ManagerDeutsche Bank (1)For analysis by class see slide 16 (2)Floating rate notes are fully hedged with interest rate swaps and caps

21 Page 21 [new chart to be inserted] Trafford Centre loan notes amortisation by class

22 intu Trafford Centre overview Mike Butterworth, COO

23 200 units (including over 65 catering and leisure units); approximately 1.4m sq. ft. retail and 0.3m sq. ft. catering and leisure space over 2 levels Anchor tenants: Selfridges, Debenhams, John Lewis and Marks & Spencer Opened to public in September 1998 Major 240,000 sq. ft. homeware and leisure extension (Barton Square) opened in 2008 Significant redevelopment of main entrance for additional catering in 2007 (The Great Hall) Retailers significantly expanding in 2011, 2012 and 2013 include Marks & Spencer, Debenhams, Next, Superdry, Ernest Jones Site location intu Trafford Centre Page 23

24 Slide 24 Catering and leisure Site location c 310,000 sq ft devoted to catering and leisure –over 65 catering units generating an estimated £90m annual turnover –themed areas - The Orient, The Great Hall – adding a sense of theatre Continuous evolution with brands including Tampopo, Zizzi, Nando’s and TGI An unrivalled leisure offer: –Odeon Multiplex cinema, Legoland Discovery Centre, Paradise Island Adventure Golf, Aerial Extreme (treetops adventure course) –Sealife aquarium opened July Events include: –Celebrity Christmas lights switch on –high profile fashion shows –firework displays

25 Driving growth through active asset management Page 25 Letting strategy Improving tenant mix Sustainability with key retailers Achieving ERV on review / renewal The right space at the right rent Goal Outcome Tenant re-investment and commitment to the Centre Consistent growth in rental income

26 Recent openings Page 26 Openings in 2012 and 2013 include: –Nespresso - first stand alone UK store –Forever 21 – fourth UK store opened July –Wokooshii – new concept restaurant –Fat Face – new concept store –Hugo Boss – expansion from 3,000 to 5,500 sq ft

27 2013 asset management activity Page 27 Victoria’s Secret – one of first five UK stores Next – expansion to 40,000 sq ft - phased opening March to June 2013 Sealife Barton Square – 21,000 sq ft leisure attraction opened July 2013

28 Slide 28 Overview of Trafford Centre rent reviews and lease maturities Significant opportunity in 2013 Lease maturities* Rent reviews* *As % of 30 June 2013 passing rent

29 Slide 29 Scope for asset management initiatives at Trafford Centre including: –original structure built to accommodate additional floors enabling cost effective expansion, e.g. –above Debenhams –along link bridge to Barton Square –opportunities to introduce MSU flagship stores through conversion of dormant space to additional retail, subject to planning permission –creation of space to enable unit re- configurations Significant asset management opportunities Future-proofed structure

30 Site location Barton Square opportunities Second storey retailing and roof Page 30 Scope for asset management initiatives at Barton Square including: –structure includes an additional floor enabling cost effective expansion –achieved retail consent for 93,000 sq. ft. on upper level –courtyard to be enclosed by glass roof to enhance environment –anticipate an increase in rental tone across Barton Square

31 Q&A

32 Slide 32 Appendices

33 Page 33 UK’s top ranked shopping centres CentreLocation CentreLocation 1Westfield LondonLondon – Shepherds Bush24Victoria SquareBelfast 2BluewaterGreenhithe25intu BraeheadGlasgow 3Westfield Stratford CityLondon - Stratford25Cabot Place, One Canada SquareLondon 4MeadowhallSheffield27White Rose Shopping CentreLeeds 5intu Trafford CentreManchester28Victoria QuarterLeeds 6St David'sCardiff29SilverburnGlasgow 7intu LakesideThurrock30The OracleReading 8intu MetrocentreGateshead30Buchanan GalleriesGlasgow 9Liverpool OneLiverpool32East Kilbride Shopping CentreGlasgow 10BullringBirmingham33Churchill SquareBrighton 11Arndale CentreManchester34Golden SquareWarrington 12Westfield Merry HillBrierley Hill34Trinity LeedsLeeds 13The Mall at Cribbs CausewayBristol 14Westfield DerbyDerby 15Highcross LeicesterLeicester40intu ChapelfieldNorwich 16Cabot CircusBristol46intu Victoria CentreNottingham 17Brent Cross Shopping CentreLondon48intu PotteriesStoke-on-Trent 18thecentre: mk ~~Milton Keynes61intu Midsummer PlaceMilton Keynes 19Festival PlaceBasingstoke67intu UxbridgeUxbridge 20intu WatfordWatford189intu BroadmarshNottingham 21West QuaySouthampton 22intu BromleyBromley 23intu Eldon SquareNewcastle Source: PMA *Top shopping centres on basis of PMA Retail Score (June 2013). Intu shopping centres highlighted ~~ Adjoined by Midsummer Place, acquired by Intu in March 2013

34 Continued attractiveness of prime UK shopping centres to investors Intu valuation yield above long run average, wide spread over bonds Page 34 Prime UK shopping centres - attractive asset class for major international investors Wide spread relative to risk free rate and corporate bonds

35 Large catchment area – 8.9 million people live within a 70-minute drive, 4.8 million within 45 minutes Located c. 6 miles west of Manchester city centre immediately adjoining M60 motorway near its junction with the M6. 11,500 car and 350 coach parking spaces. 85% arrive by car and 15% by public transport. Wealthy demographic - over 69% ABC1*, well above national average Footfall of over 30 million per annum Loyal customer base: 21% of visitors visit at least once per week and 56% visit at least monthly intu Trafford Centre catchment North West is UK’s largest regional retail market outside London & the S.E. Source: Experian *UK social groups A, B and C1, defined as members of households whose chief earner’s occupation is professional, higher or intermediate management or supervisory 70 minute drivetime around Trafford Centre Page 35

36 Slide 36 intu Trafford Centre top 10 tenants RankTenant GroupSecured rent % 1Arcadia (1) 4% 2Next3% 3Selfridges3% 4Marks and Spencer3% 5H&M2% 6Debenhams2% 7United Cinemas2% 5Forever 212% 9Victoria’s Secret2% 10Boots2% Top 10 tenants total 26% (1)Includes BHS, Topshop, Topman, Miss Selfridge, Dorothy Perkins and Wallis

37 Slide 37 intu Trafford Centre analysis of rental income by Sales Category *Other includes banks, childrenswear, confectionery, electrical computer retailers, gifts / soft furnishings / furniture, health and beauty, opticians, outdoor clothing / equipment, music retailers, sportswear, toys, travel agents and office.

38 intu Trafford Centre Increase in rental tone 2008 to 2012 Page 38 Key

39 Page 39 Trafford Centre loan notes analysis by class ClassAmountRatingCouponMaturity £mFitchMoody’sS&P A1 (N)10.9AAAAaaAA+Libor +0.20%July 2015 A2340.0AAAAaaAA+6.50%July 2033 A3188.5AAAAaaAA+Libor +0.29%July 2038 B89.2AAAa2AA-7.03%July 2029 B220.0AAAa2AA-Libor +0.33%July 2038 D1(N)29.0BBBBaa2BBBLibor +0.80%April 2035 D250.0BBBBaa2BBB8.28%Oct 2022


Download ppt "Presentation to Trafford Centre Noteholders 30 September 2013."

Similar presentations


Ads by Google