Investor day -12 November 2015-

Transcription

1 Investor day -12 November 2015-

2 1 UPDATE Q3

3 In many ways 2015 marks a turning point After six years of negative revaluations, half year results 2015 finally showed a positive valuation in the Dutch offices market Partial divestment of IOW freed up funds and turned focus fully on the Netherlands Turning into investment mode with recently announced high quality acquistions Strong take-up continued Ready for next phase in financing strategy The overall Dutch economic climate is improving and economic growth is projected to strengthen further Increased EPS outlook 3

4 Strong operational performance continued Offices NL* HNK Retail Q Q Q Q Q Q Q Occupancy rate 72.1% 71.7% 72.4% 67.6% 62.3% 86.6% 87.1% Take-up (sqm) 16,226 12,987 8,733 7,898 2,782 1,643 1,738 Take up/ supply rate 33% 25% 17% 44% 32% 19% 19% Effective Rent new leases (12 months) Effective Rent total portfolio WAULT 3.7 years 3.6 years 3.6 years 2.7 years 2.8 years 4.6 years 4.4 years * Including HNK 4

5 2 ASSET ROTATION UPDATE

6 (I) ACQUISITION OFFICE PROPERTIES IN 2015 COBRA PORTFOLIO: In October 2015 NSI acquired the Cobra portfolio for million on a gross yield K.K of approx. 8%; The Cobra portfolio consists of 7 office properties with 56,509 sqm s (occupancy 97%) and a WAULT of approx. 7 years; 4 assets in Amsterdam; 2 assets in Rotterdam; 1 asset in Den Bosch. LEIDEN BSC: In October 2015 NSI also acquired a office building in Leiden on Leiden Bio Science Park for 15.4 million on a gross yield K.K. of approx. 10%; 9,418 sq m, occupancy 100% and a WAULT (break date) of 4.2 years.

7 (I) ACQUISITION OFFICE PROPERTIES IN Vivaldi 1 2 Vivaldi 2 Location: Amsterdam South-Axis Location: Amsterdam South-Axis Total size: 9,592 sq m Total size: 8,687 sq m Passing rent: 2.4 mio Passing rent: 2.3 mio WAULT (yrs) 14.4 Occupancy: 100% WAULT (yrs) 7.1 Occupancy: 100% Tenure Single tenant Tenure Single tenant 3 Centerpoint 1 4 Centerpoint 2 Location: Amsterdam South-East Location: Amsterdam South-East Total size: 9,011 sq m Total size: 6,249 sq m Passing rent: 1.9 mio Passing rent: 1.3 mio WAULT (yrs) 4.8 WAULT (yrs) 6.0 Occupancy: 98.9% Occupancy: 100% Tenure Multi tenant Tenure Single tenant 4 assets in Amsterdam

8 (I) ACQUISITION OFFICE PROPERTIES IN Alexanderpoort 6 Alexanderhof Location: Rotterdam Alexander Location: Rotterdam Alexander Total size: 9,408 sq m Total size: 3,120 sq m Passing rent: 1.5 mio Passing rent: 0.5 mio WAULT (yrs) 3.1 Occupancy: 88.5% WAULT (yrs) 3.0 Occupancy: 94% Tenure Multi tenant Tenure Multi tenant 7 het Binnenhof 8 Ypsilon Location: Den Bosch, Paleiskwartier Location: Leiden, Bio Science Park Total size: 10,442 sq m Total size: 9,418 sq m Passing rent: 1.5 mio Passing rent: 1.6 mio WAULT (yrs) 5.9 WAULT (yrs) 4.5 (break-date) Occupancy: 90.6% Occupancy: 100% Tenure Multi tenant Tenure Single tenant 2 assets in Rotterdam 1 asset in Den Bosch 1 asset in Leiden

9 (II) SOLD 22 ASSETS IN 2015

10 (II) SOLD 22 ASSETS IN 2015 leased occ. Sold & deliverd in 2015 sq m sq m ( in %) Uraniumweg 23, Amersfoort 6,658-0% Hettenheuvelweg 12, Amsterdam 2,347-0% Hettenheuvelweg 14, Amsterdam 2, % Paasheuvelweg 15, Amsterdam 1, % Rivium Boulevard , Capelle a/d Ijssel 1, % Keulenstraat 6, Deventer 3,571 1,579 44% Snipperlingsdijk, Deventer 1, % Hanzeweg 5, Gouda 5,855-0% Adelbert van Scharnlaan , Maastricht 3, % Touwslagerstraat 17, Ridderkerk 1,711-0% Volmerlaan 7, Rijswijk 5,499-0% Van Houten Industriepark 23, Weesp 1, % Zaagmolenlaan 12, Woerden 1, % Engelanlaan , Zoetermeer 2,681 1,315 53% Bovendonk, Roosendaal 3,361 3, % Villawal, Nieuwegein 5,783 2,455 52% Nieuwe Steen 27, Hoorn 1,747-0% Karel du Jardinstraat 65, Amsterdam 6,107-0% Cairostraat, Rotterdam 2,550-0% Hardwareweg, Amersfoort 5,858-0% Kanaalweg 95, Utrecht % Montaubanstraat 1, Zeist 1, % Total of 22 assets 70,524 25%

11 (III) ASSET ROTATION OFFICES IN 2015 Date: 1 November 2015

12 (III) ASSET ROTATION OFFICES IN 2015 ASSET ROTATION NSI Offices Acquisitions Dispositions NSI Offices ( ) ( ) Transaction price k.k. 158,925,000 Real estate investments 561,300, ,600,000 35,536, ,689,000 Passing rent (in p.y.) 54,659,000 12,987,554 1,712,490 65,934,064 Yield on Passing rental income 9.7% 8.2% 4.8% 9.5% Nr. of assets Total Sq m 596,459 65,927 70, ,862 Average size per assets 4,003 8,241 3,206 4,384 Occupancy ( in %) 71.8% 97.1% 25.0% 75.7% NSI active in nr cities

13 (III) ASSET ROTATION OFFICES IN 2015 Allocation NSI Office port. (% of real estate investments) 60% 50% 18 Target cities in NL, minus G4 40% 30% 20% 10% 0% 13% 25% 10% 8% 16% 16% G4: Amsterdam G4: Den Haag G4: Rotterdam G4: Utrecht G4 Target cities (-G4) 3% 3% 43% % 27% 27% 30% 21% Other

14 Progressing towards 2016 targets Dutch offices 41% 52% 65% 70% 56% 48% 35% 30% Target 2016 Financial Occupancy 72.1% 71.5% 75.7% >80% # HNK JLL prop. quality score 49.0% 49.3% 57.5% >55% 14

15 15 3 FINANCE

16 Funding strategy Envisioned development of NSI s funding structure Starting point (13Q3) Current (15Q3) Next steps Secured bilateral and syndicated asset-based bank financing Secured syndicated corporate bank financing ~ 70% Unsecured syndicated corporate bank financing ~ 70% Unsecured syndicated corporate bank financing Secured bilateral assetbased bank financing Conv. bond ~ 15 35% ~ 15% EUPP ~ 15% EUPP ~ 15% USPP Secured bilateral assetbased bank financing ~ 15% Secured bilateral assetbased bank financing ~ 15% EUPP Schuldschein Other ~ 50 70% # Banks # Facilities Including institutional investors. Banks may be lender in multiple facilities 16

17 Development of main treasury KPI s Group Loan-to-Value (LTV) (%) Total Dutch cost of debt and swap interest (%) 70% 65% 60% 55% 50% 45% 40% 0% 59.6% 13Q3-24% Equity issue 45.4% 44.9% 47.8% 47.8% 48.9% 47.7% IOW sale -26% +23% 35.1% 36.6% 14Q1 14Q3 15Q1 15Q3 LTV since Q3-13: -15% (-25%) Cobra <45.0% 15Q3 Adj 4 6,0% 5,5% 5,0% 4,5% 4,0% 3,5% 3,0% 2,5% 2,0% 5.4% 13Q1 5.7% 3.3% 3.2% 5.2% 3.2% 13Q3 5.2% 3.2% 5.1% 3.2% 14Q1 Total swap interest 1 Total cost of debt 2 4.9% 3.4% 4.8% 3.5% 14Q Target cost of debt 5.1% 5.2% 4.9% 4.8% 3.5% 3.4% 15Q1 3.0% Cost of debt since Q2-13: -1.6% (-28%) 3.3% 15Q3 4.1% 3.1% 15Q3 Adj 4 Average Dutch debt maturity (yrs) Total Dutch net debt and LTM interest expenses 3 ( m) 7,0 6,0 5,0 4,0 3,0 2,0 1,0 0, Target average debt maturity +227% Refinancing Q3 14Q1 14Q3 15Q1 15Q3 Average maturity since Q3-13: +1.6 yrs (+60%) 1, Q Q Q Q Q1 Total debt LTM interest expenses Q Q Q3 Total net debt since Q1-13: - 310m (-36%) Interest expense since Q3-13: - 7m (-55%) Q3 Adj Based on swap notional 2. Finance costs on loans and swaps 3. Excluding interest-bearing debt of Intervest Offices / Warehouses 4. Pro forma 13Q3 after acquisitions of Cobra portfolio and Ypsilon building in BioScience Park Leiden 17

18 Next steps in funding KPI 13Q3 Current (15Q3) Target 2017 Loan to Value 45% Approx. 45% 1 40 <50% Average debt maturity 2.6yrs 4.3yrs > 3yrs Cost of debt 4.8% 4.1% 1 < 4.0% Headroom 2 25% > 10% % Due to its improved funding profile, NSI has a number of strategic financing options Strategic financing aims Div Cost Refi Mat Unsec I Move from secured to unsecured financing for 2015 facility II Optimise secured package (Pfandbriefe) III Increase current facility and draw accordion IV Issue of private placement V Issue of convertible bonds Div = Diversification and availability of capital, Cost = Reducing financing cost, Refi = Refinancing risk, Cov = Covenants, Mat = Debt maturity, Unsec = Move to unsecured financing 1. Pro forma 13Q3 after acquisitions of Cobra portfolio and Ypsilon building in BioScience Park Leiden 2. Available firepower at present: 120m. Approx. 70m committed headroom on current RCF and 50m accordion 18

19 4 REDEFINING THE MAP OF THE NETHERLAND

20 INVESTORS DAY Peter Savelberg

21 Netherlands well positioned

22 CITIES G TARGET CITIES 36 JANUARI

23 +2 CITIES G TARGET CITIES NOVEMBER 2015 OTHER CITIES 20%

24 5 NAVIGATING DUTCH FLEXIBLE OFFICE DEMAND

25 Strengthening Decision-making with data Case Which Office building in the portfolio of NSI is most suitable for a HNK location in Eindhoven? Important criteria Market: Size of city / Competition / Vacancy / Take-up volume / Potential tenants Location: Geographical location / Accessibility with public transport & car / Parking facilities / Quality of surroundings / Presence of facilities in de surroundings Building: Size of building / Identity of the building / Quality of the Building

26 RESEARCH DESIGN Research HNK EINDHOVEN? Yes / No Advise Data criteria HNK Importance criteria tenant groups HNK Development data portal Questionnaire HNK Conclusion Analysis

27 Demonstration dataportal External data Market information: DTZ Zadelhoff Company.info KvK, Chamber of Commerce CBS, Statistics Netherlands Internal data Building data portolio NSI hnk.nsi.nl

28 Conclusion HNK Eindhoven Beukenlaan HNK Eindhoven Hooghuisstraat Flex workers Managed Office / startups Tailor made office / mature companies Own floor / large companies 0 HNK Average HNK Eindhoven HNK Eindhoven Beukenlaan Hooghuisstraat

29 Conclusion Beukenlaan Hooghuisstraat Location for mature companies (10+) Close to Strijp S hotspot Good location close to highway and airport Excellent parking possibilities More vacancy Location for young start-ups Many facilities in the surroundings More competition Good location close to the Central train station Excellent parking possibilities Less vacancy

30 HNK Eindhoven next phase investment decision process

31 Business Intelligence: enhancing our commercial effectiveness by using data analytics 31

32 Evolution of our CRM. back in early 2011 datum 10 augustus 2011 aantal contracten 79 Lead Generation: aantal m resultaat Phase I The Demand Phase II From Demand Tour 67% 100% Aantal % Kans 100%, aantal huurcontracten naar soort N 22 27,8 U 6 7,6 V 35 44,3 AV 16 V 20,3 Totaal 79 44% AV 20% 100,0 N 28% U 8% N U V AV Kans 100%, aantal huurcontracten naar soort Kans 100%, totaal aantal huurcontracten AV V U N Phase III From Tour Negotiating Phase IV From Negotiating Result 50% 30% To lease out 10,000 sqm requires 100,000 initial market interest N U V AV

33 CRM always and everywhere connected to our customers and our ERP Lead Generation: 33

34 6 GAME CHANGERS AT THE WORKPLACE

35 A place to be: inspiring meeting place to work, connect and meet Tailored offices Connected Meeting rooms Managed Offices Co working & members space + Cafe = social heart Higher take up Higher effective rent Quicker re-lettings Higher retention Additional income stream Customer satisfaction 35

36 Nation wide network 36

37 Servicing the millennials and corporates (smart professionals) 37

38 Flexible workplace concepts in the Netherlands 38

39 Overview of the Dutch flexible office landscape Flex desks Managed Offices Tailored Office Meeting rooms Corporates Large floor plates # Locations Owner Spaces 5 No Tribes 5 Mixed HNK 10 Yes The Office Operators 13 No Colors BC 18 No Igluu 3 No Regus 29 No Tauro 10 Yes FlexOffiz 19 Yes Atoomclub 2 Yes WeWork 2 No Seats2Meat 62 No Impact Hub 2 No B.Amsterdam 1 No Ovvice 3 Yes Aristo 4 No Van der Valk 63 Yes Functional Professional experience Experience 39

40 HNK investment process HNK brand strongly established and recognisable in the market Though: every investments case has its very own merites; one size doens t fit all IRR is the validating metric for the investment case Small Medium Large competition Size G4 Market rent Targeted cities Market vacancy Environmen t Region Non targeted cities %Tailored Offices Opportunistic %Managed Offices %Membership Offering mix Investment rationale Defensive Offensive % Meeting rooms Required level initial investment High Medium Low 40

41 Facts so far 10 HNK properties; half way to roll out to 20 90,000 sqm space so far HNK gross rental income grew to 7.6 million (annualized 2015) in only 3 years time 19.8 mio invested up till now; Continued high retention rates Tenants using multiple HNK locations is growing HNK Q Q Occupancy rate 67.6% 62.3% Take-up (sqm) 7,898 2,782 Take up/ supply rate 44% 32% Retention rate 70% 75% Effective Rent (total portfolio) WAULT 2.7 years 2.8 years 41

42 Roadmap to a full service online platform 42

43 HNK s online presence Through website & online media Traffic is key: traffic website doubled in 2015 vs 2014 increasing visitors, leads & conversions SEO/ SEA optimization 43

44 HNK s online presence Increasing returning visitors, to book through the website Reservations in top 10 page views Continuously monitoring clicks to further improve effectiveness 44

45 HNK Social Media Dashboard

46 Creative marketing drives social media presence and commercial success 46