Retail warehousing Trends Analyst meeting

Transcription

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2 Retail warehousing Trends 2014 Analyst meeting

3 1. Demand side: retailers Vacancy: Virtually non-existent Atypical surfaces: too small / too large / different floors / few parking lots Unlicensed surfaces: wild west Return SME activities Surface: Larger: DIY, toys, flat-pack furniture Smaller: overflow of city centres / Kruidvat, Ici Paris XL, Zeeman Analyst meeting

4 1. Demand side: retailers Activities: Services: banks Center city concepts: H&M, Veritas, Hunkemöller, Cassis/Paprika Consolidation: childcare, DIY Extinguishing: decoration sector Home Market, Decor Heytens Stumbling block: Financing banking sector Slower dealmaking Rotation: At the good time: nicer, better, greater, more Now: jar of paint Rental prices: more expensive per m² for less surface Analyst meeting

5 2. Supply side Basic assumption: Promotors: develop on greenfield locations Investors: invest on locations in demand Promotion coming to an end? Financing Lucrative basis Supply existing retail properties: Family investor: buyer on balance more as seller Private funds (closed-end) Retailers: the sky is the limit? Foreign institutionals Belgian institutionals Diverse: fiscality, complexity regulations, succession Analyst meeting

6 3. Rental prices and valuation 3.1 Rental prices Sustainable rent: No more excesses Stable between EUR/m², but mostly EUR/m² No more inflation pressure Higher fiscal pressure (property tax, local taxes) Rental discounts and step-ups Lease renewals: Smaller surface Higher prices Return of the third party offer Variable rent Analyst meeting

7 3. Rental prices and valuation 3.1 Valuation Yield: Individual locations private market versus institutional Clusters institutional market ERV Reference framework Analyst meeting

8 4. Changes in the IKEA legislation Different impact for promotors and investors Regionalisation of the licenses policy Transition rules New decrees integration in building licenses Regionalisation of the legislation on commercial leases Recovery politics primacy versus European legislation Analyst meeting

9 5. Investment policy Retail Estates Retail parks (25 %) New : Verviers Clusters (50 %) 40 locations Expansion cluster Marche-en-Famenne and Sint-Denijs- Westrem Individual locations (25 %) Local economy Ducova portfolio Improvement / renovation / expansion Erembodegem distribution centre Brantano Namur (Champion) Ixina Aldi properties Analyst meeting

10 Consolidated income statement as of Analyst meeting

11 Net rental income Actual YTD 2014 Actual YTD 2013 In 000 Eur 47,024 41,402 Var % Var Eur 13.58% 5,622 Context Rental charges and occupancy rate (98.17%) at a high level Variance Q versus Q Gross rents (cf. next slide) Rental-related charges

12 Variance Q4 (YTD) 2014 versus Q4 (YTD) 2013 Description Amount (in EUR) Purchases 2013 / 2014 Reception projects 2013 / ,563 Rent renewals same tenant - new tenant 336 Discounts Vacancy 2013 / Disposals 2013 / Indexation 487 TOTAL 5,622 12

13 Property result Actual YTD 2014 Actual YTD 2013 In 000 Eur 46,761 40,959 Var % Var Eur 14.17% 5,802 Variance Q versus Q In line 13

14 Property charges Actual YTD 2014 Actual YTD 2013 In 000 Eur -3,044-2,549 Var % Var Eur % -495 Technical costs -1,275-1,059 Commercial costs Vacancy costs Property management costs (office, housing, fees, staffl) -1,417-1,220 Office & IT Housing costs Fees to third parties Public relations -3-4 Staff costs -1, Management fees Depreciations on office furniture, IT equipment and software Other

15 Property charges Actual YTD 2014 Actual YTD 2013 In 000 Eur -3,044-2,549 Var % Var Eur % -495 Variance Q versus Q Commercial costs 102 higher than last year (prospective costs, agency fees and lawyer fees concerning rent renewals) Technical costs 216 higher (mainly by increase structural (large-scale) maintenance in line with expansion portfolio (budget = 3% net rental income)) Staff costs (interim, variable salaries, indexation salaries) 15

16 Operating property result Actual YTD 2014 Actual YTD 2013 In 000 Eur 43,716 38,410 Var % Var Eur 13.81% 5,306 % Net rent 92.97% 92.77% % Increase property result versus % Increase net rental income 13.81% 13.58% Benchmark Intervest: 89.66% Ascencio: 92.45% (results 31 December ) Increase of charges remains in relation to growth portfolio low scale advantage property charges Few non-recurring elements 16

17 Corporate operating costs Actual YTD 2014 Actual YTD 2013 In 000 Eur -2,400 2,263 Var % Var Eur Office & IT Housing costs Fees to third parties Public relations Staff costs Remuneration of board of directors Taxes and legal costs

18 Corporate operating costs Actual YTD 2014 Actual YTD 2013 In 000 Eur -2,400-2,263 Var % Var Eur -6.05% -137 Variance Q versus Q Office costs = +16 Fees to third parties = - 51 Staff costs = +90 (interim, variable salaries) Stock exchange and quotation costs: 118 see higher 18

19 Operating result (before result on portfolio) Actual YTD 2014 Actual YTD 2013 In 000 Eur 41,316 36,148 Var % Var Eur 14.30% 5,168 % Net rent 87.86% 87.31% % Increase operating result versus % Increase net rental income 14.30% 13.58% Variance Q versus Q In line Benchmark Ascencio: 83.47% (results 31 March) Intervest Retail: 85.10% 19

20 Financial result Actual YTD 2014 Actual YTD 2013 In 000 Eur -15,787-14,771 Var % Var Eur 6.88% -1,016 Variance Q versus Q Financial costs: Debt financing acquisitions Average interest rate 4.50% (4.67% at 31 March 2013) 20

21 Taxes (tax leakage) Actual YTD 2014 Actual YTD 2013 In 000 Eur Income tax Deferred tax Exit tax Var % Var Eur % 219 Variance Q versus Q Corporate tax: depends on the number of subsidiaries active at the specific moment Exit tax: depends on the number and timing of the mergers and valuation at that moment 21

22 Net current result Actual YTD 2014 Actual YTD 2013 In 000 Eur 25,072 20,700 Var % Var Eur 21.12% 4,372 Net current result Group 25,072 20,700 22

23 Portfolio result Actual YTD 2014 Actual YTD 2013 In 000 Eur 3,496 8,882 Disposals Valuations 236 3, ,579 Disposals Q actual In the previous financial year, 4 retail properties, 2 carcass apartments and 1 property of the Distri-Land portfolio, were sold to individual investors with a net capital gain of EUR 7.45 million. Valuations Q actual Surplus value can mainly be explained by indexation and rent renewals. The decrease compared to last year can be explained by the low inflation at a constant yield. 23

24 Net result Actual YTD 2014 Actual YTD 2013 In 000 Eur 28,568 29,582 Var % Var Eur -3.55% -1,014 24

25 Earnings per share Actual YTD 2014 Actual YTD 2013 In 000 Eur Net current result (Group) 25,072 20,700 Result on portfolio 3,496 8,882 Net result (Group) 28,568 29,582 Number of shares 7,290,411 5,813,122 Weighted average number of shares 6,930,195 5,717,073 Current result / share (group) (weighted average number of shares) Current result / share (group) (total number of shares entitled to dividend) Result on portfolio/ share (weighted average number of shares) Net result / share (weighted average number of shares)

26 Consolidated balance sheet as of Analyst meeting

27 Assets: Investment properties* In 000 Eur 745, ,593 Var % Var Eur 9.21% 62,246 Note Most important purchases and receptions during the financial year: Acquisition by purchase or contribution real estate companies = million Activated financing costs = 0.62 million Acquisition and contribution investment properties = million Net increase project developments = 2.34 million The most important investments during the previous financial year are the following: the further acquisition of the VRP 1 shares, the acquisition of SDW Invest and Ducova, the purchase of a piece of land in Jambes, the further acquisition of the Erpent Invest shares, 6 retail properties in retail park Espace de la Famenne in Marche-en-Famenne, 3 Hubo stores in Marche-en-Famenne, Mechelen and Deinze. Furthermore, the portfolio was optimised in Péruwelz and Lochristi. * Includes project developments in accordance with the amended IAS 40 standard (8,077). 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 capitalised finance costs. 27

28 Note DETAIL PROJECT DEVELOPMENTS (included in investment properties) TOTAL = 8,077 Erpent : 630 Projects RWI : 422 Waremme : 678 Wavre (incl apartment) : 1,042 Barchon : 515 Jambes : 2,260 Champion 3 : 298 Genk : 105 Mol : 1,996 Other :

29 Assets: Assets held for sale In 000 Eur 4,385 7,488 Var % Var Eur % -3,103 Note These are properties for which a sales agreement has been signed, but the notarial deed is not yet signed. As of 30 June, these properties are: Plots of land of Zee en Polder (3,960 KEUR) (for these plots of land no agreement has been signed, but they are actively put on the market since they are no strategic investment the plots of land which will not be sold before 31 December 2017 will be rebought by the promotor) Délitraiteur Genval (424) 29

30 Assets: Trade receivables In 000 Eur Var % Var Eur 1.40% 10 In line 30

31 Assets: Tax receivables In 000 Eur 1,899 1,083 Var % Var Eur 75.35% 816 Increase can mainly be explained by withholding tax to reclaim concerning liquidation coupon Distri-Land (550) and VAT to reclaim (224) 31

32 Assets: Cash and cash equivalents In 000 Eur 2,188 1,878 Var % Var Eur 16.51% 310 Profits capital increase are fully invested. 32

33 Shareholders equity (presentation new RD) Var Eur in 000 Eur Total shareholders equity 356, ,587 86,936 Shareholders equity Group 356, ,587 86,936 Capital 160, ,389 31,572 Issue premium 93,095 52,857 40,238 Legal reserve Reserve portfolio result 86,926 76,775 10,151 Available reserve 7,859 9,431-1, % transaction costs -18,387-15,764-2,623 Variation fair value swaps -23,882-30,092 6,210 Result carried forward 20,946 16,989 3,957 Result of the financial year 28,568 29,582-1,014 33

34 Liabilities Var Eur in 000 Eur Total 399, ,923-18,583 Financial debt LT 327, ,089-2,412 Financial debt ST 22,421 16,577 5,844 Financial derivates 23,882 30,092-6,210 Other long-term debts 14,267 14, Other short-term debts 11,094 27,067-15,973 Debt ratio 49.10% 55.75% Note The increase of the financial debts relates to: 12,000 long-term credits which need to be renewed (ING maturity date 30/01/2015), the other are straight-loans (5,100) and loans which are refund in the course of the financial year (4,821). Negative valuation financial derivates decreased by 6,210. Other long-term debts concern deferred taxes in the acquired companies (1.17) and provisions (0.1) and the transferred minority interest of RWI for an amount of EUR million. 34

35 Financial debts Average interest rate = 4.50% Average maturity = 46 months (3.8 years taken into account the bond loan and the renewed credits). On , the average maturity was 34 months (2.8 years) Ratio fixed-variable = 98.26% fixed or swapped (By including all credit lines, this will decrease to 87.51%) Renewal credits for EUR million ( ) Total outstanding credit lines per = EUR million Bond = EUR 30 million Analyst meeting

36 Financial debts: overview hedgings Hedging IRS 274,531, Fixed interest rate 69,488, Bond with fixed interest rate 30,000,000 CAP 0 FLOOR 0 Total 374,019, Analyst meeting

37 Net asset value per share excl. dividend Net asset value per share (fair value) excl. dividend excl. dividend Cancellation negative value swaps Net asset value per share (fair value excl. IAS financial instruments) Cancellation provision 2.5 % transaction costs Net asset value per share (investment value)

38 Yield sensitivity 70,00% 60,00% 65,00% 59,43% 56,00% 52,56% 50,00% 45,64% 40,00% 42,16% 38,68% 30,00% 20,00% 10,00% 0,00% 2,32% +1,5% +1% +0,5% -0,5% -1% -1,5% Analyst meeting

39 Investment capacity Increase debt ratio to 65% = EUR million Increase debt ratio to 60% = EUR million Increase debt ratio to 55% = EUR million Analyst meeting

40 Guidance Gross rental income: EUR million Dividend: EUR 3.10 / share Analyst meeting

41 END Remarks / questions? Analyst meeting

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