Company Presentation June 2017

Transcription

1 1 Company Presentation June 2017

2 Disclaimer This presentation has been prepared by Grivalia Properties REIC(the Company ). The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company, shareholders or any of their respective affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Unless otherwise stated, all financials contained herein are stated in accordance with International Financial Reporting Standards( IFRS ). This presentation does not constitute an offer or invitation to purchase or subscribe for any shares and neither it or any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. The information included in this presentation may be subject to updating, completion, revision and amendment and such information may change materially. No person is under any obligation to update or keep current the information contained in the presentation and any opinions expressed in relation thereof are subject to change without notices. This presentation is subject to any future announcements of material information made by the Company in accordance with law. This presentation does not constitute a recommendation regarding the securities of the Company. 2

3 3 Group summary overview

4 Key value drivers Key business highlights Strong management team 1 2 Diversified portfolio with total market value of 870M Weighted average lease expiry of 11 years with blue chip tenants 3 Market capitalisation of over 901M (1) REIC framework Solid operational performance % of rent derived from offices, 32% from Retail, 17% from Mixed Use, 7% from Logistics and 7% from Special Use Currently achieving 94,4% occupancy rate across the portfolio 6 Best in class Management Top quality shareholder base High quality property portfolio 7 Solid shareholding base with key international base including: Fairfax (41,50%), Wellington (9,35%), Brandes (5,00%), Fidelity (4,99%) 8 Growing presence in the hospitality sector 4 Note: (1) As at

5 Organizational structure Management team George Chryssikos CEO CEO, Executive BoD member & Chairman of the Investment Committee Non-Executive member of BoD of Eurobank Group, Praktiker Hellas and Lamda Helix Founded Grivalia Hospitality platform to deploy capital in the very attractive high - end hospitality sector in Greece and abroad Previously served as Managing Director, Corporate Value Partners, CEO of DTZ Greece & BoD advisor at laso Healthcare Group MBA Corporate Finance & Strategy, Columbia Business School (NY) MSc in Engineering & Construction Management from UC Berkeley (CA) MEng in Civil Engineering from National Technical University of Athens Paris Varfis CFO CFO since 2013 Previously served as CFO in Eurobank Equities, Regional Director New Europe Eurobank Securities, Regional Finance Director in Novonordisk A/S MSc Finance and Controlling, National and Capodistrian University (Athens) Bsc in Business Administration University of Brussels Professional qualification from the Institute of Certified Auditors in Greece Natalia Strafti COO COO since 2014 Between , she also served as Investment & Portfolio Manager Previously worked in the real estate sector of the EFG Eurobank Group since 2000 as Deputy Head of Advisory Services and Asset Management Graduate of the London School of Economics and Political Sciences Diploma in Valuation and Real Estate, Greek Institute of Valuation Katerina Kalfamanoli Commercial Director Antonis Chatzikostas Portfolio Mgt Director Liana Kyriopoulou Technical Director Stefanos D Vlastos Hospitality Director 5 Commercial Director since 2008 Previously worked as Director of Investments & Commercial Leasing, Colliers International and as Capital Markets Senior Surveyor, Cushman & Wakefield Hellas BSc Management & Organisational Behaviour, American College of Greece Portfolio Management Director since 2016 Track record includes cooperation in senior level with ASE listed corporations Previously worked as Development Director and Executive BoD member for Pasal Development S.A. MBA, Alba Business School Technical Director; joined the management team in 2014 PhD Town & Urban Planning, Paris XII Creteil University, MSc Real Estate & Valuations, Independent Science & Technology College Member of the Royal Institute of Chartered Surveyors Hospitality Director since 2016 Previously served as President and CEO in ComMit Group and held senior management positions at Ylios Hellas and Bear Sterns International Ltd. BA degree in Business Economics, VUB and MBA, SDA Bocconi

6 Our subsidiaries Portfolio of assets as at Mar-17 Greece Romania Serbia Luxembourg Cloud Hellas S.A. (100%) Seferco Development S.A. (99,99%) Retail Development S.A. (99,99%) Eliade Tower S.A. (99,99%) Reco Real Property A.D. (100%) Grivalia New Europe S.A. (100%) Greece Our Joint Ventures Luxembourg Panama Piraeus Port Plaza 1 (50%) Grivalia Hospitality S.A. (50%) Isla Pedro Gonzalez (Pearl Island) Note MV: Market value TMV: Total market value of portfolio 6

7 93 Assets 870M PPP1 (JV) One office building under development Pearl Island under development Occupancy rate 94,4% Land size sqm Building size sqm Remaining building coefficient sqm Valuation Portfolio evolution 94M in Cash 127M Debt (1) Weighted average cost of debt 3,03% Weighted average maturity 5 years Debt to total assets 12% Loan to value 15% Total balloon payments 79Μ Revenue M Rental Income 16 EBITDA 14 Adj. EBITDA 13 Portfolio value (excl. own use) 870 Gross Debt 127 Cash & cash equivalents Loan to Value 94 Net Debt 33 NAV 856 NAV per share 8,46 Gross LTV 15% Adj. LTV (Net) 4% old portfolio Capital deployment 7 (1) 2017 New financing in place IFC: Credit line 50M, maturity 8 years Eurobank: Credit line 50M, maturity 5 years Arcania: Credit line 10M, maturity 6 years

8 8 Financial Performance

9 millions Revenue millions Profit before tax millions (2) Profit before tax, valuations and negative goodwill /1/ Gain/ (loss) from fair value adjustments 4 (1) millions Cash & cash equivalents

10 Profit after tax Adj. EBITDA 79% 77% 81% FFO millions % 82% millions /1/ Adj. EBITDA Margin (%) EBITDA Calculation Operating profit Plus: Depreciation of property, plant and equipment Less: ValuationGain/ (Loss) (1) 1 Adjusted EBITDA FFO Calculation Profit after tax Less: Negative goodwill Less: ValuationGain/ (Loss) (1) 1 Funds from operations

11 Key financial metrics summary M Rental Income EBITDA Adj. EBITDA Portfolio value (excl. own use) Gross Debt Cash & cash equivalents Net Debt (87) (252) (92) (13) 33 NAV 636 * NAV per share 10,43 * 8,27 8,24 8,43 8,46 Gross LTV 13% 12% 8% 7% 15% Adj. LTV (Net) (16%) (43%) (12%) (2%) 4% 11 * : taking into consideration the 61M shares vs. 101,26M shares

12 12 Portfolio Overview

13 Certified LEED Gold Certified LEED Platinum Certified LEED Gold Kifissias 69 Tavros office building Green Plaza Praktiker Tavros State Laboratory, Tsocha str Rikia, Aspropyrgos Total Office Mixed use Retail Special use Logistics 92 properties 28 properties 19 properties 35 properties 5 properties 5 properties m m m m m m 2 Rent p.a. 65,2M 37% of total rents 17% of total rents 32% of total rents 7% of total rents 7% of total rents 94,4% leased 93% leased 83% leased 98% leased 100% leased 96% leased 13 Rental income diversification by asset class % rents Properties 92 Plot of land 1 Office building under development 1 10 largest assets of the portfolio # Property Location Sector Tenant TMV % TMV % Rental income 1 6A Bd. Dimitrie Pompeiu Bucharest Office Multitenant 48,1 5,5% 6,0% 2 37, Andreou Ministry of Maroussi Office Papandreou Education 39,2 4,5% 5,5% 3 37 Kifissias Maroussi Office Ministry of Health 38,4 4,4% 5,5% 4 25 Martiou Tavros Office Multitenant 36,0 4,1% 4,1% 5 63 Agiou Dimitriou Alimos Office Multitenant 33,1 3,8% 4,0% Kifisou Renti Retail Alexandras Athens Special use Agiou Konstantinou The Mart Cash & Carry SA Ministry of Citizen Headquarters of Police 29,1 3,3% 2,8% 27,4 3,1% 4,3% Maroussi Mixed Multitenant 26,0 3,0% 0,5% Ermou Athens Retail Marks & Spencer 21,0 2,4% 2,1% 10 8 Tatoiou Metamorfosi Retail Praktiker 20,2 2,3% 2,7% Total 318,6 36,4% 37,5%

14 Grivalia portfolio Long term secured income from high quality tenants Low vacancy rate (94,4% occupancy) across all sectors Long term leases with WALT of 11 years Diversified tenant mix with blue chip counterparties 85,4% of the annual rental income comes from guaranteed leases All leases allow for the recovery of ordinary maintenance expenses Most of the retail contracts have an upside through turnover clauses Long term secured income hedged against inflation Tenant mix 22,4% Greek State 21,8% 17,0% 8,8% Bancpost 4,7% 3,4% Other 21,9% Leases profile Contract Indexation Profile Expirations Guaranteed lease periods Up to year % Up to year % Up to year % Up to year % Up to year % Up to year % 14

15 15 Strategy

16 Company focuses on its investment objective which is long term value creation Prime office sector Market Segment Prime retail assets Modern logistics infrastructure Increase presence in recently-established hospitality sector Value investing philosophy and approach Business Model Off-market and exclusive transactions Deal sourcing from distress sellers Protection of the rental returns from inflationary risks through indexation and upward adjustment mechanisms Capitalise on available funding sources Funding Maintain strong banking relationships and seek to diversify sources of funding Seek to improve existing debt terms and conditions 16

17 9,00 8,00 8,13 * 8,43 8,69 8,52 8,81 8,46 7,00 6,00 8,13* 5,00 4,00 3,00 2, March 2017 From April 2014 until today Grivalia has distributed c.1 p.s. to its shareholders * : 8,13 is the adjusted NAV taking into consideration the 101,26M shares vs. 61M shares 17 Note: Grivaliaasat owns4%ofthetotalissuedshares.accordingtolaw2190/1920 ownsharesmaybecancelled,ifsonavpersharewillbe 8,81.

18 Shareholder Structure Grivalia Properties vs Athex Composite Share Index Retail 3,22% International Investors 8,28% Greek Institutionals 3,66% Treasury stock 4,00% Fairfax Financial Holding Ltd 41,50% Fidelity Management and Research LLC 4,99% Brandes Investment Partners LP 5,00% Wellington Management Company LLP 9,35% Eurobank Ergasias S.A. 20,00% 20 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Athex Composite Share Price Index GRIV Share price information as at Total shares outstanding: Number of own shares: Price as at : 8,20 Market Cap as at : 830M Ranked 15according to Company s average annual market capitalization in the ATHEX NAV as at : 856Μ NAV per share as at : 8,46 18 Share price information as of Price as at : 8,9 Market Cap as at : 901M

19 Any investor who has invested intogrivalia Properties in2006 by acquiring shares and has participated in all the SCIs then he: Has invested: Has received total dividends: Based on adjusted NAV (incl. treasury shares) 8,81: total return 29,5%

20 20 Appendix I: Capital deployment program

21 Total investments 354Μ-Value creation 43,3Μ, No of assets 54 Portfolio of four retail boxes / DIY stores Entry yield 12,9% / Completed in December 2013 Portfolio of four DIY stores with anchor tenant the largest and most successful DIY retailer in Greece, with total GLA of c sqm 100% occupancy rate, annual rental income of 5,93M Transaction price: 50,0M Value creation : 15,0M Portfolio of two warehouses in Aspropyrgos Entry yield 11,7% / Completed in March 2014 Newly constructed assets with modern specs and total GLA of c sqm 100% occupancy rate, annual rental income of 1,54M Transaction price: 14,2M Value creation : 3,4M Hellenic Republic, Sale & Leaseback Entry yield 9,63% / Completed in May 2014 Portfolio of 14 assets in Athens and locations around Greece with c sqm of office areas 100% occupancy rate, annual rental income of 14,08M Transaction price: 145,8M 21 Value creation : 1,8M

22 Praktiker retail boxes in Heraclio, Crete Island and Mandra, Western Attica Entry yield 9,5% / Completed in March & May 2015 Acquisition & Leaseback of two retail units of the largest and most successful DIY retailer in Greece, with GLA of c sqm 100% occupancy rate, annual rental income equal to 5% of net store sales with min. guaranteed rent 1,425M p.a. Transaction price: 15,0M Value creation : 1,5M Mart Cash & Carry (ex Makro) portfolio of 9 stores around Greece Entry yield 9,5% / Completed in August 2015 Acquisition & Leaseback of Mart Cash & Carry (ex MAKRO) portfolio, one of the largest wholesalers in Greece, with GLA of c sqm 100% occupancy rate, annual rental income equal to 1,45% of net sales with min. guaranteed rent 5,7M p.a. Transaction price: 60M Value creation : 17,4M Office building in Athens CBD, 68 Vassilissis Sofias Avenue Entry yield c.6% / Completed in March 2016 State of the art, trophy building in prime location with GLA of c sqm c.70% occupancy rate, with potential up to 0,85Μ under full occupancy Transaction price: 11,25M 22

23 Joint venture for the development of an office building in Piraeus Acquisition of 50% in Octοber 2016 Estimated completion in Q Acquisition of 50% of Piraeus Port Plaza 1 in view of developing a modern office building in close proximity to the port of Piraeus with gross area of c sqm Agreement in place for the acquisition of remaining 50% as soon as development is completed and asset is leased to users Transaction price: 1,6M for 50% of the company Value creation : 1,6M Office building in Maroussi, Attica Entry yield 8,5% / Completed in November 2016 Acquisition of contemporary office building with gross area of c sqmof which c sqm of office areas 100% occupancy, annual rental income 1,22M Transaction price: 15,1M Value creation : 0,9M 23 Portfolio of three commercial assets in Athens & Halkidiki Entry yield 8,5%/ Completed in December 2016 Acquisition of 2 supermarket units and 1 retail unit in Nikiti (Halkidiki), Koropi & Kolonaki (Attica) respectively Gross area c sqm, 100% occupancy / annual rental income 0,5M Transaction price: 5,8M Value creation : 0,7M

24 Retail and office stand-alone building, 340 Syggrou Avenue, Kallithea, Attica Entry yield 5,5% on passing occupancy / Completed in February 2017 Acquisition of a 50% undivided interest in a stand-alone building with excellent promotion with c sqm gross area, c sqm of which have main use 57% occupancy / annual rental income 0,72M Transaction price (for 50%): 13,2M Value creation at acquisition: 0,2M Retail units andcomplementary storage and parking facilities, 49 Kifissias Avenue, Maroussi, Attica Entry yield 4,23% on passing occupancy / Completed in February 2017 Acquisition of retail units with excellent promotion that cover c sqm along with c sqm of storage and parking areas 44% occupancy / annual rental income 0,22M Transaction price: 5,28M Value creation at acquisition: 0,8M 24 Portfolio of 15 retail units & 1 land plot across Greece Entry yield 10% / Expected to be completed in Q Preferred bidder in tender for the acquisition of13 retail units & 1 land plot and indivisible co-ownership of additional 2(43,75% & 50,00%respectively) 7 units located in Athens,2 in Thessaloniki & 6 in other cities Total developed area c sqm 100% occupancy, annual rental income 2,0M, to be converted to 1,625M plus turnover rent Transaction price: 16,25M

25 25 Appendix II: New revenue engine - Grivalia Hospitality

26 A new revenue engine for Grivalia Properties is our vehicle specialized in the hospitality sector, Grivalia Hospitality. 30M have been invested, representing 50% of the Subscribed Share Capital and entitled to an extra: 10% profit upside through preferred shares owned solely by Grivalia Properties, leading to a revenue engine for Grivalia Properties through the growth of this vehicle. 26

27 27 Appendix III: REIC framework

28 Invest in Every commercial real estate sector including hospitality real estate business, marinas etc Residential assets Long - term concessions Property development (1) Invest through Direct asset acquisition JVs - minimum 25% share without the obligation to control them SPVs- minimum 80% share Holding companies- minimum 80% share Regulated mutual and alternative investment funds - minimum 80% share REICS are Entitled to: Borrow up to 75% of their total assets Set up special funding vehicles Acquire assets from their shareholders through a highly regulated and transparent process held by the GSM Must: Distribute at least 50% of net profits Tax regime Annual tax: 10% * (ECB reference + 1%) on total assets (2) with a minimum of 0,75% of their total assets No property transfer tax on acquisition Registration duties -1,75%0 on the purchase price of the asset No Capital Gains Tax No Tax on Dividends 28 (1) :Certainrestrictions:maximumcostofpropertydevelopmentmustbeupto40%ofthetotalportfolio. (2) : As of today taxation rate of 0,100% with an ECB rate of 0,0%.

29 Appendix IV: Consolidated full year 2016 financial statements 29

30 70 Revenue 70 Profit/ (loss) before tax millions millions (10) (20) (30) (27) millions (10) (20) (30) (40) (50) (60) (70) Profit before tax, valuations and negative goodwill /1/ Gain/ (loss) from fair value adjustments (66) (43) 5 20 (14) millions Cash & cash equivalents

31 In thousands FY12 FY13 FY14 FY15 FY16 Rental income Gain from investment property disposals Net gain/ (loss) from fair value adjustments on investment property (65.687) (43.151) (13.593) Technical service fees (684) (502) (233) (27) (27) Other direct property relating expenses (1.109) (1.414) (1.327) (1.505) (1.728) Property taxes (624) (1.371) (2.749) (4.063) (5.513) Company Social Responsibility (206) (147) Provision for doubtful debts (498) (736) - - (1.500) Employee benefit expense-bod (1.317) (1.610) (3.525) (5.007) (4.903) Depreciation of assets (90) (90) (170) (123) (117) Other income Other expenses (1.082) (1.217) (1.498) (1.663) (2.856) Operation profit/ (loss) (32.095) (13.066) Finance income Finance costs (3.095) (2.180) (2.084) (1.806) (2.805) Negative goodwill arising from subsidiary's acquisition Share of net profit of investments accounted for using the equity method Profit/ (loss) before tax (26.514) Taxes (1.546) (1.354) (1.443) (1.515) (4.948) Profit/ (loss) for the year (28.060)

32 In thousands FY12 FY13 FY14 FY15 FY16 Investment Property PPE, Goodwill and Intangible assets Deferred tax asset Investment in associates and joint ventures Other long term receivables Non current assets Trade and other receivables Cash and cash equivalents Current assets Total Assets Bank Debt Current income tax liabilities Other Payables Total Liabilities Share capital Share premium Own shares (6.719) (6.735) (5.199) (12.493) (25.957) Other reserves Retained earnings Total Equity Total Liabilities & Equity

33 For further information please contact: Mr George Chryssikos, Chief Executive Officer - telephone number: , gchryssikos@grivalia.com Mr Paris Varfis, Chief Financial Officer -telephone number: , pvarfis@grivalia.com Mrs Natalia Strafti, Chief Operating Officer - telephone number: , nstrafti@grivalia.com Company s website: 33