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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 (-12%) Investment portfolio: € 2,418m (-9%) Development pipeline ± € 250m LTV 29% (± 36% after € 220m acquisition in Feb 2010)

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fy 09 key figures
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 (-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 + € 1.45 in stock)
fy 09 highlights
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 2010
slide7
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 6.5-7.5%
  • 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: $ 190-330m

Revaluation: -12.3%

Cap rate: 7.1%

Occupancy: 90.2%

Gross rental income: $ 70.8m

Rent l-f-l: -1.6% (loc. cur.)

7

finland
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 5.75-6.25%
  • Itakeskus holding up in competitive environment

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

belgium
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 5.75-6.25%
  • Brussels office market: increasing vacancy rate, lowering rents. Prime office yields now > 6%-level

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

the netherlands
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 5.75-6.25%
  • 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)

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

gross rental income m
Gross rental income (€ m)

* in local currency

interest rate sensitivity dec 09
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)

currency sensitivity dec 09
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
slide20

Cap rates Dec 09

Cap rate = net market rent divided by gross market value including transaction costs

top 10 largest assets
Top 10 largest assets

Market value Dec 09 (€m)

22

top 10 largest tenants
Top 10 largest tenants

Gross rent Dec 09 (€m)

23

development pipeline overview
Development pipeline overview

*Phase II USD 140m; decision based on success of phase I

** Phase II decision based on success of phase I and granting of permits

debt conservatively financed at low cost
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

debt profile pro forma after 220m dutch acquisition and refinancing stf
Debt profile pro forma after € 220m Dutch acquisition and refinancing STF*

* STF: syndicated term facility

30

future 2010 and onwards
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
nivelles belgium
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

33

belgium tournai
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: 2012

35

san antonio texas usa
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

36

wereldhave profile
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

financial objectives
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
strategy value creation
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
strategy risk management
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
market approach
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
sustainability i
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
sustainability ii
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).

slide59

Cap rates (in %)

* = net market rent divided by gross market value including transaction costs

slide64

Investor realtions: Charles Bloema tel: +31(0)703469325 investor.relations@wereldhave.com www.wereldhave.com