Analyst meeting 25 May Retail Estates nv

Transcription

1 Analyst meeting 25 May 2012 Retail Estates nv

2 Highlights Preview Consolidated income statement as of Consolidated balance sheet as of Guidance 2012/

3 1. Increase portfolio 451 shops (448 shops last year) 428,548 m² (419,346 m² last year) 550 M ( 516 M last year) fair value (incl assets held for sale) 45 shops under construction 2. Stable business Increase: no rent reductions (incentives) / positive renewals Occupancy rate: stable at % (98.15 % last year) Valuation: indexation yield decrease in solitary shops

4 3. Increase capital basis 16 June M Fidea 27 June M FUN 30 March M Ars

5 4. Increase portfolio acquisitions M Realised Waremme (600 m² Tom & Co) new Kasterlee (937 m² Aldi) redevelopment 2012 Genk-Winterslag (808 m² Aldi) redevelopment 2014 Houthalen-Helchteren (1,049 m² GL International/Brantano) Jodoigne (1,037 m² Delhaize) Sint-Joris-Winge, Gouden Kruispunt (3,179 m² FUN) en (2,185 m² AS Adventure) Namen Champion (1,320 m² Aldi) extension 2011 Lochristi (1,316 m² ARS woondecoratie) redevelopment

6 5. Increase portfolio project development M Brugge: V-Markt 10 shops 1/06/2012 Tongeren: T-Forum 27 shops 1/08/2012 Namur (Champion): 3 shops 31/12/

7 6. Increase porfolio optimalisation shops Wilrijk Boomsesteenweg (31/12/2012) Mechelen Noord (31/03/2012) Antwerp Bredabaan (30/06/2012) Kasterlee (31/10/2012)

8 I. Portfolio desinvestments M Objectives: 25 M M Q M Q Result: M compared to fair value M compared to investment value

9 II. Investing in Retail Estates stable business Context: Turnover retail consumer confidence Expansion/rotation at A1 locations Relocations

10 Rental income Inflation (+3 %) Renewals: positive effect WIN/WIN initiatives Low risk project development ongoing ( 75-90)

11 Funding Capital: 55 % debt ratio, private placements Bank loans: duration, rates, swaps

12 III. Occupancy rate/bad debtors High level % Increased attention to: Smaller entities Oversupply Product mix Structural difficult markets Bad debtors WCO legislation (Belgian version chapter 11)

13 IV. Valuation Yield Stable at A1 location 6.25 % 6.75 % Small decrease solitary shops (6.75 % 7.25 % versus 7 % 7.50 %) Deflation inflation WIN/WIN initiative Short term versus long term

14 1. Economic environment Demand / supply Financing retail Inflation + 2 % Consumer confidence - soft discount 2. Perimeter Net growth M / 25 M desinvestments Net rental income 35.6 M 3. Capital base Private placement after capital increase Optional stock dividend: July

15 4. Economic environment 28 locations under construction Procedure management occupancy rate Retail know-how versus rent reduction Property management team increased to 6 FTE Incasso management: M outstanding on M incasso

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17 Net rental income Actual YTD 2012 Actual YTD 2011 In 000 Eur 35,473 33,845 Var % Var Eur 4.81 % 1,628 Variance Q vs. Q Acquisitions : impact +960 net rental income Impact of acquisitions & disposals achieved during the previous financial year: +390 Selling premises during : -380 impact on net rental income Positive indexation and rent renewals:

18 Property result Actual YTD 2012 Actual YTD 2011 in 000 Eur 35,204 33,469 Var % Var Eur 5.18 % 1,735 Variance Q vs. Q More non-recurring non-rechargeable expenses last year

19 Property charges Actual YTD 2012 Actual YTD 2011 in 000 Eur 2,165 2,204 Var % Var Eur % -39 Variance Q vs. Q Technical costs: -26 higher Staff costs: +55 lower

20 Operating property result Actual YTD 2012 Actual YTD 2011 in 000 Eur 33,038 31,266 Var % Var Eur 5.67 % 1,722 % net rent % % % increase property result versus % increase net rental income 5.67 % 4.81 % Benchmark : Intervest: % Ascencio: % Increase of charges remains in relation to growth portfolio low scale advantage property charges Few non-recurring elements

21 Corporate operating costs Actual YTD 2012 Actual YTD 2011 in 000 Eur 2,194 2,067 Var % Var Eur % Variance Q vs. Q Increase mainly by rising staff costs (+139)

22 Operating result (before result on portfolio) Actual YTD 2012 Actual YTD 2011 in 000 Eur 30,844 29,199 Var % Var Eur 5.64 % 1,646 % net rent % % % increase operating result versus 5.64 % % increase net rental income 4.81 % Variance Q vs. Q Increase of the operating result in line with the increase net rental income Benchmark Ascencio: % Intervest Retail: %

23 Financial result Actual YTD 2012 Actual YTD 2011 in 000 Eur - 12,977-12,623 Var % Var Eur % Variance Q vs. Q Financial charges: o o Debt financing acquisitions More capitalized intrest charges because of the number of projects in development o Average interest rate 4.83 %

24 Taxes (tax leakage) in 000 Eur Income tax Deferred Tax Exit tax Var % Var Eur Actual YTD 2012 Actual YTD Variance Q vs. Q Income tax: depends on the consolidation perimeter Exit tax: depends on the number and timing of the mergers & the validation at that moment. Reversal of 192 as a result of different mergers during

25 Net current result Actual YTD 2012 Actual YTD 2011 in 000 Eur 18,014 16,292 Var % Var Eur % 1,

26 Portfolio result Actual Q Actual Q in 000 Eur Result on disposals of investment property Changes in fair value of investment property , ,395 Q actual 12 properties were sold Q4TD, net sales price of M ( M = investment value, fair value = M) Q actual Capital gain can be explained by indexation, renewals and renovations

27 Net result Actual YTD 2012 Actual YTD 2011 in 000 Eur 27,360 26,692 Var % Var Eur 2.5 %

28 Earnings per share Actual YTD 2012 Actual YTD 2011 in 000 Eur Net current result Result on portfolio Net result (group) Number of shares Weighted average number of shares Net current result / share Current result / share based on div. entitled shares 18,014 9,346 27,360 5,437,074 5,317, ,292 10,400 26,692 5,061,663 4,915, Result on portfolio/ share Net result / share

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30 Assets: investment properties* in 000 Eur 537, ,588 Var % Var Eur 6.31 % 31,884 Note: - Acquisition of real estate investment companies: - Contribution in kind Fun, Fidea and ARS: - Project developments: - Sales:(there is also M sold from assets held for sale) - Other: - Transfer to assets held for sale: - Changes in fair value: - Capitalized interest charges: M M M M M M M 0.98 M * Includes project development in accordance with the amended IAS 40 standard (7077). The projects are booked at fair value when they are contracted, licensed, and let. The projects for which no license and / or tenant were found, are recorded at acquisition costs plus capitalized finance costs

31 Assets: investment properties* in 000 Eur 537, ,588 Var % Var Eur 6.31 % 31,884 Detail project development: Total= 23,759 Brugge (project V-market) = 6,932 Tongeren = 14,300 Champion = 1,148 Other = 1,379 * Includes project development in accordance with the amended IAS 40 standard (7077). The projects are booked at fair value when they are contracted, licensed, and let. The projects for which no license and / or tenant were found are recorded at acquisition costs plus capitalized finance costs

32 Assets: Assets held for sale in 000 Eur 13,159 10,778 Var % Var Eur % 2,381 Note: Investment properties for which sales agreement is signed, but notarial deed not yet signed

33 Assets: trade receivables in 000 Eur Var % Var Eur % Decrease trade receivables net of 171 K

34 Assets: tax receivables and other current assets in 000 Eur 1,216 2,482 Var % Var Eur % - 1,266 Decrease due to collected withholding tax

35 Assets: Cash and cash equivalents in 000 Eur 1,450 1,150 Var % Var Eur %

36 Shareholders equity Var Eur in 000 Eur Total 241, ,607 11,729 capital share premium 121,174 43, , ,989 33, ,406 18,036 Reserves 89,866 78,054 11,812 2,5 % transaction costs - 14,145-12, Charges in fair value of financial assets and liabilities - 26,187-9, Result of the year 27,360 26, Note: The limited increase in equity can be explained by the negative evolution of the value of the swaps

37 Liabilities Var Eur in 000 Eur Total 313, ,671 Financial debt LT Financial debt ST Financial derivates Other long-term debts Other short-term debts 257,426 16, ,638 26,187 1,951 11, ,768 7, ,945 10,129 2,061 11,536 Debt ratio % % Note: The increase of the financial debts relates to: Additional loans in relation to acquisitions Negative valuation of financial derivates

38 Average interest rate 31/03/2012 = 4.83 % Average maturity 31/03/2012 = 3.8 year Maturity table Breakdown by maturity of non-current financial debts ( 000) Between 1 and 2 years 25,016 19,022 Between 2 and 5 years 219, ,290 More than 5 years 13,060 88,455 Ratio fixed - floating = 88 % fixed or swapped Forward swap contacts are closed for 2013 and

39 Net asset value per share ex dividend Net asset value per share (fair value) (ex dividend) ex dividend Cancellation IAS 39 (swaps) Net asset value per share (fair value excl. IAS 39 Cancellation provision 2,5 % transaction costs Net asset value per share (invest ment value)

40 070% 060% 065% 061% 058% 054% 050% 048% 044% 041% 040% 030% 020% 010% 000% 2,12% +1,5% +1% +0,5% -0,5% -1% -1,5%

41 Proposed gross dividend = 2.80 ( net 21 % withholding tax Period of choice: 03/07/12-24/07/12 Emission price = 48 (dividend as from 01/04/2012 Q per share Maximum capital increase 11,771,760 Practical: 22 net dividend rights (coupon n 17) for 1 new share RE pays per new share Coupon payment / trade date new shares: 27 July

42 Net rental income: (000) Dividend: 2.9/share

43 Remarks / questions?

44 Analyst meeting 28 May 2012 Retail Estates nv