Kempen European Property Seminar 30 May 2012 in Amsterdam

Transcription

1 Kempen European Property Seminar 30 May 2012 in Amsterdam

2 Profile Top 3 listed Dutch mixed real estate fund Dutch REIT / Listed on Amsterdam Euronext (Midkap AMx) Portfolio: 2.29bn TRI: 203m Outstanding shares: 63,381,376 Dutch Office portfolio: 39% Mixed fund 2 home markets (NL, B) Exit strategy for Switzerland High yield fund (8,9% GIY) Focus on retail and offices (50/50 on average) NL: retail and offices B: offices and warehouses Focus on small and medium sized companies Financial highlights Quarterly dividend, 30-50% Stock LTV target 50%, Fixed interest > 80% 80% free float, main shareholder 20%

3 Financial ratios Consolidated x 1,000 Q Q Q Investments 2,294,260 2,321,813 1,357,829 Shareholders equity 895, , ,105 Shareholders equity NSI 763, , ,105 Debts to credit institutions (excluding derivatives) 1,315,693 1,329, ,412 Q Q Q Loan to value (%) Average interest rate (%) Average maturity loans (years) Fixed interest loans (%) Interest coverage ratio NAV EPRA NAV

4 Steady Result & Loan To Value LTV , ,7 46,9 57,2 54,9 54,8 57,2 57, Q Direct result and Dividend 45,327 46,635 48,510 47,810 50,037 51,627 52,398 56, , Q Dividend Direct result

5 Business Highlights Rationale Capitalizing upon NSI s strengths: NSI s tenant focus Skills & funds to innovate and invest In house letting teams, development & property management Increased opportunities of scale Reducing operational costs Reducing overhead Leveraging operational synergies Increased opportunities tenant retention Increased access to financial markets Increased visibility for both equity and debt capital markets Progress m² Occupancy top priority: Proactive approach expiration calendar VNOI accelerated VNOI data integrated into CRM system Letting De Rode Olifant shows approach is paying off 15% lower refurbishment costs Rode Olifant Synergies gradually kicking in: Cost synergies to amount to approx. 2.0 FY 12 Full benefits from operational synergies expected to materialize as of Q First successes NSI is included in MidCap 25 million equity issue 60% stock dividend 2011 final dividend Syndicated loan extended Amsterdam region Rotterdam region Utrecht region The Hague region Eindhoven region Breda Tilburg Merger with VastNed Offices/Industrials 1.0 bn portfolio 68m (35%) book profit on acquisition Strong focus on Randstad Integration completed Record of renewals and new leases in ,000 m² letting for the Red Elephant The Hague Introduction in the Euronext Amsterdam Midcap Index (AMx)

6 Strategy & Markets Mechelen Campus 60,768 m² Tenants: Borealis Polymers, Cochlear, Endemol, Haskoning Belgium

7 Portfolio & Market Focus The Netherlands Belgium Switzerland * 232 properties; 1.6 billion * Retail and Offices * Retail: day to day shopping 10,000 m² Yield: 7.4% (GIY) *Offices Focus on Randstad Multi tenant Approx. 5,000 m² Yield: 9.7% (GIY) * 40 properties; 590m * Offices and Warehouses (GIY 8.9%) * Offices: multi tenant * Warehouse on logistic axes (North/South and East /West * 4 properties: 119m * GIY: 6.7% * Exit strategy in progress

8 Direct Investment Result Consolidated Q x 1,000 per avg share x 1 in 2012 vs Q x 1,000 per avg share x 1 Gross rental income , Service costs not recharged , Operating costs , Net rental income , Financing income Financing expenses , Administrative costs Direct investment result before tax , Corporate income tax Direct investment result after tax Direct result attritutable to minority interests , , Direct investment result ,

9 Gross Rental Income Bridge x 1, , , , ,

10 Portfolio Rent Development Average effective contractual rent/m² (NL) 200,00 170,00 Offices Retail Offices quarterly 140,00 110, Q1 2012

11 Vacancy In Portfolio (%) 30,0 Healthy occupancy Retail at friction levels In Offices focus is on actively managing expiration calendar Redevelopment of properties to new concepts impact vacancy until completion Retail 25,0 Offices Industrials 24,0 20,0 15,0 10,0 5,0 Total 12,8 13,1 13,0 11,9 10,5 8,7 8,7 9,1 7,9 6,6 6,5 6,0 3,0 3,1 2,9 3,4 14,7 14,1 14,8 13,7 10,1 9,5 10,3 11,2 10,4 10,2 21,1 16,0 14,5 13,0 13,7 9,9 15,3 16,1 15,9 14,8 13,6 11,0 10,5 10,6 4,6 4,9 4,3 4,8 4,7 5,1 3,5 4,7 17,8 12,0 4,9 0,0 Q Q Q Q Q Q Q Q Q Q Q Q Q1 2012

12 Property values Full quarterly revaluation, 25% external Since peak 2007 approx. 25% revaluation in offices Valuation offices and industrial Belgium increased Valuation per m2 below replacement costs per m2 indicates general low level of valuations Increased deal activity in the market; investors returning to the market

13 Expiration of Leases 31 March 2012 (NL) rental income x 1, % % 18% 17% 32% % 4% 21% 36% 15% 21% 14% 12% 14% 13% 14% 4% e.v. 22% retail offices industrials

14 Lease Strategy Client Focus Multi tenant over single tenant: Spread the risk Accelerate occupancy rate improvement Aiming at smaller and medium sized business Improving of lettability by increasing quality and sustainability Client focus: - Retail specialist and local managers - CRM and vacancy management (offices) - In-house technical management Flexible leasing schemes at certain dedicated locations

15 HNKR Business model Huur Huur Service kosten Operator inkomsten meetingrooms Service Kosten Parkeren memberships Horeca / IT partner inkomsten diensten parkeren Traditioneel vastgoed HNKR concept

16 HNK Amsterdam

17 HNK Rotterdam Vasteland Scheepvaartkwartier Kop van Zuid

18 HNK Rotterdam

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20 HNKR Clubroom

21 Loan book & Hedging per country NSI is financed by well capitalized financial partners NSI is committed to active relationship management with its core financiers Novelty of insurance company in syndicate Fixed Float Total Hedge d % Fixed Maturity Interest % # banks NL % % 10 CHF % % 1 BE ,0 68.0% % 5 Total , % % 14 Hedge portfolio of swaps: No overhedged positions, no margin calls Debt maturity in the Netherlands to be further extended

22 Loan Duration x 1,000 Refinancing /3rds covered BE: 130 mln refinanced in 2012, first expiry ( 10 mln) end of mln NSI syndicated loan extended to 2015; 50m syndicated to insurance company VNOI syndicate (amounts are exposure): RCF A ( 30.4 mln) and Term A ( 121 mio) to expire 30/6/2013 RCF B ( 9.2 mln) to expire 20/11/2013 Term B ( 99 mln) and Ancillary Fac. 25 mln) to expire 30/6/2014

23 Outlook 2012 Managing the balance sheet Disposal program smaller assets mainly offices NL Swiss properties Fully using synergies Improving former VNOI portfolio (client focus occupancy) m cost synergies Branding NSI s office portfolio Alliances with operators (Re)development of properties Shopping centre Keizerslanden, Deventer Extension of several smaller shopping centres

24 Redevelopment of Properties Shopping centre Keizerslanden Deventer To be constructed 7,660 m 2, to be renovated 7,430 m 2 Expected extra rental income 1.6m Value before redevelopment 18.9m Expected Investment of 21m Expected value after redevelopment 45.8m Demolition works: Q1 2012, Construction starts Q Expected completion in 2014

25 Impression 25

26 Financials Archimedesweg Leiden 2,500 m² Tenants: Proxy, Xendo

27 Balance Sheet Consolidated x 1, Total non-current assets 2,186,735 2,334,212 1,372,734 Total current assets 143,908 18,356 17,764 Total assets 2,330,643 2,352,598 1,390,498 Total shareholders equity 895, , ,105 Interest bearing loans 999,822 1,122, ,758 Financial derivatives 67,192 62,297 19,239 Deferred tax liabilities 1,886 1, Redemption requirement long-term liabilities 226, , ,313 Financial derivatives Debts to credit institutions 94,529 73,727 42,696 Other accounts payable and deferred income 45, , ,423 Total shareholders equity and liabilities 2,330,643 2,352,568 1,390,498 * including minority share

28 Indirect Investment Result Consolidated x 1,000 Q Q Q Revaluation of investments - 26,581-18,879-5,097 Elimination of rental incentives Result from other investments Net result on sales of investments Movements in market value of financial derivatives - 4,799-5,926 11,564 Exchange-rate differences Allocated management costs Merger costs - - 6, Result from bargain purchase - 68,161 - Indirect investment result before tax - 32,777 36,509 5,931 Corporate income tax Indirect investment result after tax - 32,970 36,395 5,851 Indirect result attributable to minority interests ,034 - Indirect investment result - 33,302 38,429 5,851

29 Portfolio Bridge x 1, ,321,813 1,899-4,005-23,839-4,293 1,551 1,134 2,294,

30 Direct Investment Result Consolidated x 1,000 Q Q Q Gross rental income 41,499 42,575 25,871 Service costs not recharged - 1,482-1, Operating costs - 4,938-4,902-3,549 Net rental income 35,079 36,204 21,915 Financing income Financing costs - 14,007-14,822-8,084 Administrative costs - 1,816-1, Direct investment result before tax 19,284 19,609 12,845 Corporate income tax Direct investment result after tax 19,204 19,496 12,826 Direct result attributable to minority interests - 3, Direct investment result 16,181 16,88 12,826