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Investor presentation H1 2010 results

Investor presentation H1 2010 results. Recent highlights. Occupancy rate slightly increased Cap rates fractionally lower (-11bps) Sale non-strategic assets € 12.2m, 9% above latest valuation € 5.0m additional acquisition of C&A store; ‘De Eggert’ now fully owned

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Investor presentation H1 2010 results

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  1. Investor presentation H1 2010 results

  2. Recent highlights • Occupancy rate slightly increased • Cap rates fractionally lower (-11bps) • Sale non-strategic assets € 12.2m, 9% above latest valuation • € 5.0m additional acquisition of C&A store; ‘De Eggert’ now fully owned • Documentation flexible EMTN-programme completed • Carré Vert office in Paris fully rented as of 15 Sept 2010 • Refurbishment plan Itäkeskus initiated

  3. Business environment • Macro picture mixed with outlook for US, UK and Continent showing significant volatility in short time frame → instability not over yet • Consumer spending still heading sideways • Property markets: investment volumes continue to recover, prime properties/long leases still favored. Prime yields slightly lower in most markets • Letting markets: retail rents stable in good shopping centres/locations but under pressure in weaker centres/locations. Office take-up gradually rising, vacancy rates stabilizing and lowering in some markets. Rents still mostly decreasing, especially outside CBDs 3

  4. H1 2010 key figures • Direct result p/s: € 2.54 (-3% yoy) • Total result p/s: € 2.58 • Revaluation portfolio: +0.4% • NAV p/s: € 75.03 (+1.7% yoy) • Investment portfolio: € 2,768m (+14%) • Development pipeline ± € 250m • Occupancy 90.8% (+1.1%) • LTV 37%

  5. Gross rental income (€ m) * in local currency

  6. Occupancy Q2 2010

  7. Financial costs

  8. Financial cost (€ m)

  9. Interest rate & currency sensitivity June 2010 • Floating rate loans 59% of debt (FY09: 38%) • Average interest: 2.4% (Dec 09: 2.6%)* • 0.5% change in interest rates EPS change: € 0.12 (or 4.7% of DR) • Hedge on investments (end of period) - USD 47% (Dec 09: 62%) - GBP 56% (Dec 09: 61%) • A change of 10% on period-end exchange rates has an impact of € 1.79 (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 6.7%) on DIR p/s * On nominal basis. On IFRS basis: 2.9% (2009: 3.3%) 11

  10. Indirect result

  11. RevaluationH1 2010

  12. Yield movements & cap rates H1 2010 Cap rate = net market rent divided by gross market value including transaction costs

  13. Balance sheet & Debt profile

  14. Debt: conservative ratio’s at low cost * On nominal basis. On IFRS basis: 2.9% (2009: 3.3%) • Interest bearing debt: € 1,069m (2009: 713m) • Fixed/floating: 41%/59% (Dec 09: 62%/38%) • Average cost: 2.4% (Dec 09: 2.6%)* • LTV: 37% (2009: 28%) • ICR: 6.9x (2009: 8.1x) Wereldhave amongst the best capitalised listed property companies in Europe

  15. Debt profile 30 June 2010 * on nominal basis 19

  16. Development pipeline overview * Phase II USD 140m; decision based on success of phase I ** Phase II decision based on granting of permits

  17. Future: 2010 and onwards • Focus on occupancy rate. Expiries in US and Belgian office portfolio challenging in current markets • Active sales program of industrial- and smaller assets in NL and UK • Dutch portfolio: focus on next stage → active management and refurbishments- /extension-plans • Refurbishment plan Itäkeskus to be finalised • Acquisition-focus on UK-retail • Completion of developments projects to contribute to results from 2011 onwards

  18. Appendix Carré Vert upgrade

  19. Carré Vert history • Acquired as development in 1997 • Completed in 1999 • 19,660 m2 offices, 350 p.p. • Investment: € 63m • Rent: € 6m • Gross initial yield: 9.6% • Tenant: AON • Vacated in Dec 2008 • Upgrade needed to improve: • Competitive position in market • Sustainability profile

  20. Carré Vert upgrade Sustainability upgrade: - Sustainable cooling: ground water combined with ice storage; - Upgrade to an energy-efficient heating system; - High-frequency lighting; - Cradle-to-cradle carpeting (Desso) → aiming for BREEAM rating GOOD

  21. Carré Vert upgrade: results • Construction works: Jan 2009 – Feb 2010 • Investment: € 8m • New tenant: EDF • Occupying 10,283 m2 (52%) as of 15 Feb 2010 fully rented as of 15 Sept 2010 • Lease terms: 9 year fixed contract • Headline & effective rent higher vs old contract • Valuation June 2010: € 123m

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

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