Eurobank Properties REIC. Company Presentation September 2012

Transcription

1 Eurobank Properties REIC Company Presentation September 2012

2 Company overview Largest Investment Property Fund in Greece High quality property portfolio and remarkable tenant mix (Eurobank, Bancpost, AB Vasilopoulos, Carrefour Marinopoulos, Praktiker, H&M, L Oreal, P&G, CYTA Hellas, Marks & Spencer) Annual rental revenue in the range of 38M and passing yield 8% approximately Tax-Efficient Structure in Greece; REICs are exempt from: - Capital gains tax - Transaction tax - Dividend tax Attractive Dividend Policy Dividend per share Dividend yield (at year end) 6,63% 8,91% 10,53% 2

3 Healthy Balance Sheet Actual Data as at Million in Cash (Term Deposits) with an average deposit rate 6,04% Low LTV with long maturity - Loan to Value: 15% - Debt (& all other liabilities) to Total Assets: 13% - 85,6 million total debt outstanding as of Average maturity: 7 years - Weighted average cost of debt 3,36% - All debt is on floating interest rate Loan maturity schedule 0% Retail Development SPV 10,3% 0% 0% Eurobank Properties 2,3% Eliade Tower SPV & Reco Real Property SPV 14,7% Eurobank Properties & Reco Real Property SPV 3,3% Seferco Development SPV 25,2% Eurobank Properties 17,9% Eurobank Properties 26,4% Actual balloon payments thousands Retail Development SPV Eurobank Properties Eliade Tower SPV & Reco Real Property SPV Eurobank Properties & Reco Real Property SPV Seferco Development SPV Eurobank Properties Total balloon payments: 48,2m

4 Healthy Balance Sheet- continued Balance Sheet Summary in thousands 30/06/ /12/2011 Investment property PPE, Goodwill and Intangible assets Deferred tax asset 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 Other reserves Retained earnings Total Equity Total Liabilities & Equity Debt Portfolio in thousands 30/06/ /12/2011 Retail Development-2013 (Banca Romaneasca) Eurobank Properties REIC (Emporiki Leasing) Reco Real Property SPV ( EFG Stedionica AD Beograd) Eliade Tower SA-2017 (Eurobank EFG Private Bank Luxembourg SA) Eurobank Properties REIC (Eurobank) Reco Real Property SPV ( New Europe Funding B.V.) Reco Real Property SPV ( EFG Stedionica AD Beograd) Seferco Development SA (Eurobank EFG Private Bank Luxembourg SA) Eurobank Properties REIC- 2020(Eurobank Leasing) Eurobank Properties REIC (Emporiki Bank) Total Debt

5 Stock Information Share Price Information Shareholder Structure 28/08/2012 (1) Share Price (30/06/2012) 3,80 Share Price (28/08/2012) 4,56 NAV per share (30/06/2012) 10,32 Discount to NAV (30/06/2012) 64% Capitalization (30/06/2012) 232 M Dividend per share 11 0,40 Dividend yield (30/06/2012) 10,53% Treasury Stock 1,8% Greek Institutionals 3,6% REIB 5,8% International Investors 7,0% Retail 7,1% Fairfax Financial Holdings Ltd 19,1% Eurobank Ergasias S.A. 55,6% Total Shares Outstanding : 61 million 5 (1) As of 30 June 2012 the Company owned of treasury stock. As of 31 December 2011 the company owned of treasury stock.

6 Tax Regime Favourable tax structure linked with ECB Ordinary Corporate Taxes Eurobank Properties Taxes 0,6% unified property duty (ETAK) on objective value of investment properties (0.1% on owner occupied properties) Income tax of 24% on profits 0,1% unified property duty on objective value of all properties Annual tax of 10% of the main refinancing operations minimum bid rate of the Central European Bank (reference rate) plus 1% (1) of the average of investments plus any available funds at their current value 3% additional tax on rental income No additional tax on rental income 10% property transfer tax or 1% transaction levy (as applicable) in case of acquisition of properties No property transfer tax or transaction levy in case of acquisition of properties Registration duties Reduced registration duties 24% Capital Gains Tax No Capital Gains Tax 25% Tax on Dividends No Tax on Dividends 6 1) The taxation formula is as follows: 10% * (ECB reference + 1%),for example, if the reference rate is 0,75%, the taxation rate for the company is 10% (1%+0,75%) = 0,175% 2) There are discussions for further improvements in REIC legislation framework.

7 High quality diversified portfolio Office % of GLA by Sector Retail 56,2% 17,4% 24 properties 16,0% 10,4% 18 properties 59,2% of total rents 20,7% of total rents 90,1% leased (1) 98,5% leased Logistics Mixed use Portfolio Occupancy Rate : 90,2% 3 properties (2) 7,9% of total rents 88,0% leased 10 properties 12,2% of total rents 80,0% leased 7 (1) Calculation excludes own-use property in Kifisias 117, Marousi (2) Calculation excludes property held for disposal in Spata.

8 Portfolio Geographic Breakdown Belgrade & Nis No. of Assets 2 GLA (sqm) MV ( mn) 194 % of TMV 3,4% Ukraine Bucharest & Iasi No. of Assets 3 GLA (sqm) MV ( mn) 76,4 % of TMV 13,4% Rest of Greece Serbia Romania Kiev No. of Assets 1 GLA (sqm) 542 MV ( mn) 3,2 % of TMV 0,6% No. of Assets 12 GLA (sqm) MV ( mn) 75,2 % of TMV 13,2% Greece Athens and Greater Athens No. of Assets 38 GLA (sqm) MV ( mn) 394,1 % of TMV 69,4% 8 Note: Market value are based on the SOE valuation on 30/06/2012.

9 Strong cash flow and attractive lease profile Leases Overview Standard lease term of 12 years in Greece Weighted average remaining term of 10,2 years 73,5% of the annual rent income comes from guaranteed leases Signed agreements with several tenants under which they waive right to terminate leases for a period of 1 13 years All tenants responsible for ordinary maintenance expenses Expiration (% of Annualised Rent) 80,0% 9,0% 9,7% 0,2% 1,1% Contracted Indexation Profile (1) 14,2% 0,8% 14,3% 0,5% 52,1% No rent review CPI Other CPI + 0.5% CPI + 1.0% HICP 18,1% 9 (1) Due to the unfavorable economic situation we have granted freeze of the rental indexation for 1 to 2 years to several tenants representing 41,8% of total rental income.

10 Healthy financials for 2011 Rental growth vs. operating costs thousands ,3% % % +7% % % -15% +28% Operating costs to rental income ratio Funds from Operations 27% 24% 18% 12% 10% thousands % + 2% + 96% %

11 Healthy financials for continued Adjusted EBITDA thousands % % % +2% NAV per share (1) 12,5 12,0 11,5 11,0 10,5 10,0 9,5 9,0 8,5 8,0 11,85 11,94 11,50 + 0,7% - 4% - 3% + 3% 11,49 11, (1) The decrease in NAV is mainly driven by the loss from fair value adjustments by 27,3m in 2010 and 32,5m in 2011.

12 Solid operational profits for 2011 thousands +1% -31,5% -29,4% 12

13 1st Half 2012 financial results Rental growth vs. operating costs % thousands % % -15% /6/ /6/ /6/2012 Funds from Operations thousands % - 5% /6/ /6/ /6/

14 1st Half 2012 financial results-continued Adjusted EBITDA thousands % - 9% /6/ /6/ /6/ ,0 11,5 11,47 NAV per share (1) - 2% 11,0 10,5 10,0 9,5 9,0 8,5 11,24-8% 10,32 8,0 30/6/ /6/ /6/ (1) The decrease in NAV is mainly driven by the loss from fair value adjustments by 46,1 m in the 1 st half 2012.

15 1st Half 2012 financial results- continued % Loss from fair value adjustments Profit/(loss) bf tax Net Profit/(loss) 30/06/ /06/ thousands (10.000) (20.000) Profit bf tax and valuations (11.829) (30.000) (40.000) (25.420) (27.127) (50.000) (46.124) 15

16 Management Effectiveness and Efficiency Company Industry Net Income/Employee (in thousands) Revenue/Employee ( in thousands) Asset Turnover 0,05 0,08 Return on Assets - 5 Yr. Avg. 3,36 2,06 Return on Investment - 5 Yr. Avg. 3,47 2,34 Return on Equity - 5 Yr. Avg. 3,83 4,08 16 Source : Note: Data as at 31/12/2011

17 European Discounts to NAV 17 Source : published NAV Bulletin, July 2012

18 Share Performance Comparison EuPro vs. ASE (1) & FTSE 20 in 2012 EuPro vs. ASE, EuPro ASE FTSE 20 ASE EuPro EuPro Market Cap Ranking in ASE (2) (1) ASE: Athens Stock Exchange (2) For average yearly market capitalization is used, whereas for 2012 the daily market capitalization (30/8/2012) is used.

19 Market Outlook Previous 3-year period facts Limited institutional investment activity Relocations in smaller spaces & lease renegotiations, leading in drop in rents & rise in vacancy rates Asking yields presented only modest rise Development pipeline kept in very low levels 2012 Outlook Additional pressure on rents for high street retail market and second class office buildings is expected which will further adjust the market and stabilize it. Attractive investment opportunities are expected to arise in the 2n half of Rental drop is expected to slow down & reach bottom at end of 2012 with few exceptions. Due to lack of new supply, vacancy rate to remain decent for prime assets, expected double digit levels for secondary. Yields are expected to move upwards by bps and the prices to move further down. High cost of money and limited financing to provide cash-rich investors with opportunities Company forecast 19

20 Contact For further information please contact: Mr George Chryssikos, General Manager-telephone number: , or Mr Stelios Probonas, Chief Financial Officer- telephone number: , sprobonas@eurobank.gr Company s website: DISCLAIMER This presentation has been prepared by Eurobank 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. 20