Preliminary Results for the year to 31 December 2007

Transcription

1 Preliminary Results for the year to 31 December March 2008

2 Agenda Performance highlights Financial highlights and overview Operational highlights and overview Dividend Policy Summary and Outlook 2

3 An exceptionally active period since IPO Completion of shopping & entertainment centres developments: Successful openings of Rybnik, Sosnowiec and Lublin in Poland, Arena Plaza in Hungary and Plzen Plaza in Czech Republic All 100% let upon opening Plzen Plaza Arena Plaza Lublin Plaza Sosnowiec Plaza Rybnik Plaza 3

4 An exceptionally active period since IPO (cont.) 13 new developments acquired in 2007 (16 since IPO)* Country Name Nature GLA** Timisoara Plaza Mixed use 71,000 Romania Serbia India Iasi Plaza Mixed use 71,000 Miercurea Ciuc Plaza Retail 14,000 Slatina Plaza Retail 21,000 Belgrade Plaza Mixed use 90,000 Sport Star Plaza Retail 40,000 Kragujevac Plaza Retail 24,500 Kharadi Mixed use 225,000*** Trivandrum Mixed use 195,000*** Poland Torun Plaza Retail 45,000 Bulgaria Shumen Plaza Retail 18,000 Hungary Uj Udvar Retail 16,000 Czech Republic Roztoky Residential 14,000 Total 844,500 * And additional 3 developments were acquired since the period end (Kielce, Honedoara, Targu Mures) ** GLA gross lettable area *** GBA gross built area 4

5 An exceptionally active period since IPO (cont.) NAV up by 31% to 1.06 billion (IPO at 11/06: 809 million) NAV per share up by 41% to 2.68 (IPO: 1.90) Profit before tax up by 1444% to 227 million (31 December 2006: 14.7 million) Exits: Handover of the interests in Rybnik Plaza, Sosnowiec Plaza and Lublin Plaza to Klepierre Sale of Arena Plaza to aaim Terms more favourable than those reflected in our prospectus Financial strength and flexibility: High cash balances Dual listing in the main market of the LSE and the WSE Positive A+/positive rating granted by Standard & Poor s to raise up to $400 million at favourable interest rates; this was improved to Aa3 by Moody s in February 2008 Circa 53 million raised in 2007 following 137 million raised in

6 Financial Highlights NAV of 1.06 billion, reflecting approximately 2.68 per share (IPO: 1.90) Value of portfolio at completion of 3.5 billion Real estate trading properties developed for future sale up by 138 million to 298 million (31 December 2006: 160 million) Total assets of 761 million (31 December 2006: 475 million) Gross revenues and net gains from sale and operating of real estates of 510 million (31 December 2006: 74 million) Profit before tax of million (31 December 2006: 16.3 million) owing to disposal of three centres in Poland and one centre and an office building in Budapest Basic EPS of 0.78 and diluted EPS of 0.77 Current cash position of 400 million (31 December 2007: 67 million; 31 December 2006: 219 million) and working capital of 625 million at 31 December, 2007 (31 December 2006: 324 million) 6

7 Financial Overview Results Revenues (1) 507,843 60,219 Gain from the sale of investment property, net (2) Changes in fair value of investment property 2,071 13, Cost of operations (3) 268,730 50,034 Gross profit 241,184 24,157 (1) including sale of Arena Plaza- 366m, Sosnowiec Plaza and Rybnik Plaza - 90m; ; Lublin Plaza - 39m; Novo Plaza price adjustment - 1.7m; Rent 4.5m; Fantasy Park 6.6m Novo Plaza sale: 50m (2) 2007 Mainly from net gain from selling DPO including PA from sale of Poznan - 9m; Electricity licences - 4.4m (3) Cost of sale of Arena - 162m; Cost of sale of Rybnik and Sosnowiec 67m; ; Cost of sale of Lublin - 30m; Property operations - 9.7m; including sale of Novo Plaza - 44m; Property operations - 3m 7

8 Financial Overview (Cont.) Administrative expenses (1) 23,117 8,173 Operating profit (2) 218,067 15,984 Finance income (expenses), net (3) 9, Other expenses, net (338) (170) Share in loss of associate (19) (150) Income tax expenses (4) Profit for the year ,967 1,608 14,720 8

9 Financial Overview (Cont.) NOTES TO THE RESULTS (1) Administrative expenses increased mainly due to non-cash share based payments of 7.6 million (2006: 1.2 million), increase in volume of activities with operations in additional countries, admition to trade in the WSE (circa. 700 thousands) and the costs of five grand opening costs during the year (Rybnik, Sosnowiec, Lublin, Arena, Plzen) - Circa. 2.5 million. (2) Ahead of expectations, the Company s operational profit reflects the net profit from the selling of four trading properties and DPO, one of two investment properties held (3) Substantial finance income recorded due to higher cash balances and the achievement of more favourable lending terms (4) Taxation remains low due to favourable tax structure (Dutch Holding company) 9

10 Financial Overview (cont.) Balance sheet and cash flow Net assets of million (31 December 2006: million) RoseR primarily due to Plaza s profits from exercise of trading properties Cash and short term deposits decreased to 67 million (2006: 219 million) mainly due to: Extensive investment in new plots and joint ventures (13 projects) Offset by cash received from selling subsidiaries (Arena, Rybnik, Sosnowiec, Lublin, DPO) Current cash balances following receipt of Arena proceeds and bond issuance million 10

11 NAV Significant increase in value of some of its assets, especially the Arena Plaza in Budapest which was valued at 333 million at IPO and sold to aaim for circa 381 million The three shopping and entertainment centres sold in Poland were handed over at a price higher than their value estimated at IPO Additional 16 assets acquired post IPO by December 31, 2007 resulted in substantial increase in the Company s s Net Asset Value. USE EUR ( 000) Market value of land and projects by King Sturge LLP (1) 802,530 Assets minus liabilities as at December 31, 2007 (2) 260,058 Total 1,062,588 (1) Excluding Plaza Bas Projects which was not valuated and will be potential uplift in the next valuation (2) Excluding book value of assets which were valued by King Sturge LLP 11 The resulting NAV per share is 2.68 as at December 31, 2007, a 41% increase compared to the IPO (Nov 2006)

12 Operational Highlights 2007 Opening & exits Successful opening and handover of Arena Plaza in Budapest, The Biggest Mega Mall in Hungary - 100% let on opening Successful opening and handover of Sosnowiec Plaza, Rybnik Plaza and Lublin Plaza in Poland All 100% let on opening Combined total market value for the properties of million, up by 26.6 million compared to the estimated value of approximately million at the time of the Company s IPO Successful opening of Plzen Plaza in Czech Republic - 100% let on opening, soon to be handed over to Klepierre Arena Plaza deal closed at a record gross yield of 5.9%, reflecting circa. 381 million asset value; this represented 20% of ALL real estate deals done in Hungary during 2007, and the highest volume single transaction 12

13 Operational Highlights 2007 (cont.) Portfolio Development Second and third mixed-use Joint Venture development projects acquired in India in the Kharadi district of Pune and in Trivandrum, the capital city of the State of Kerala: Combined Gross Built Area ( GBA ) of Pune is approximately 225,000 sqm Trivandrum has a GBA of approximately 195,000 sqm Purchase of four additional developments in Romania; Timisoara (GLA 71,000 sqm), Iasi (GLA 71,000 sqm), Miercurea Ciuc (GLA 14,000 sqm) and Slatina (GLA 21,000 sqm) Purchase of land for an additional housing development in the Roztoky suburb of Prague in the Czech Republic Additional development acquired in Poland in the city of Torun - a shopping & entertainment centre development with GLA of approximately 45,000 sqm 13

14 Operational Highlights 2007 (Cont.) First entry into Serbian market three new developments: two in Belgrade and one in Kragujevac with total gross lettable area of 155,000 sqm. First acquisition in Bulgaria in the city of Shumen for shopping and entertainment development with an anticipated GLA of 18,000 sqm Acquisition of 35% stake in an existing shopping centre in Budapest, Hungary (16,000 sqm, GLA) which shows significant redevelopment potential for refurbishment and subsequent sale. Utilization of 100% of the IPO proceeds and total gross investment of approximately 425 million in 2007 Total portfolio now comprises 27 assets under development in nine countries (to date, 30 assets) 14

15 Operational Highlights 2007 (cont.) Financial Markets Achieving dual listing in the main market of the LSE and the WSE Being granted with A+/Positive rating by S&P which was improved to Aa3 by Moody s in 2008 Issuance of bonds totaling approximately 53 million to the Israeli institutional investors in 2007, followed with another 137 million in 2008 Plaza shares were the best real estate performing share on the London main market during 2007, rising 18% and outperforming all real estate indices ( Global, Europe, UK) 15

16 Key Highlights since the period end Gross proceeds raised of New Israeli Shekels ( NIS ) million (approximately 137 million) from bond issuance on the Tel Aviv stock exchange Acquisition of 2 sites in Romania: Retail development in Honedoara (GLA 20,000 sqm) Retail development in Targu Mures (GLA 30,000 sqm) Acquisition of additional plot in Poland: Retail development in Kielce (GLA 40,000 sqm) 16

17 Projects Overview to Date Location Under development Size SQM Offices (1) Romania 7 587,000 1 Poland 5 250,000 - Czech Republic 5 (2) 126,600 1 Hungary 4 413,500 1 India 3 527,000 - Serbia 3 154,500 - Greece 1 35,000 - Bulgaria 1 18,000 - Latvia 1 49,000 - Total 30 2,160,600 3 (1) Company head office, Palazzo Ducale and Prague 3 Office (2) Including Plzen which was completed and soon to be handed over to t Klepierre 17

18 Projects Overview to Date Romania - projects under development No, Asset/Project Location Nature of asset Size Sqm (GLA) Plaza % Status 1 Casa Radio Bucharest, Romania Shopping & leisure plus residential and office 360,000 (GBA) 75 Construction started in 2007; completion scheduled for Timisoara Plaza Timisoara, Romania Shopping, entertainment & residential 71, Under Planning 3 Miercurea Ciuc Plaza Miercurea Ciuc, Romania Shopping & entertainment 14, Under planning 4 Iasi Plaza Iasi, Romania 5 Honedoara Plaza Honedoara, Romania Shopping, entertainment & office Shopping & entertainment 71, Under planning 20, Under planning 6 Targu Mures Plaza Targu Mures, Romania Shopping & entertainment 30, Under planning 7 Slatina Plaza Slatina, Romania Shopping & entertainment 21, Under planning 18

19 Projects Overview to Date Poland - projects under development No. Asset/Project Location Nature of asset Size Sqm (GLA) 8 Zgorzelec Plaza Zgorzelec, Poland Plaza % Status 15, Construction will Commence in 2008; Completion scheduled for Torun Plaza Torun, Poland 45, Planning & permits stage 10 Suwalki Plaza Suwalki, Poland 20, Construction will Commence in 2008; Completion scheduled for Kielce Plaza Kielce, Poland 40, Under planning 12 Lodz Lodz, Poland Residential 130, Under planning 19

20 Projects Overview to Date Czech Republic - projects under development No. Asset/Project Location Nature of asset Size Sqm (GLA) Plaza % Status 13 Plzen Plaza Plzen, Czech Rep. 20, Completed, opened to the Public on December 7, Prague 3 Prague, Czech Rep. Office, for future use as residential 61,600 (for sale) 100 Currently operational as an office building, re-zoning for residential use was received 15 Opava Plaza Opava, Czech Rep. 16 Liberec Plaza Liberec, Czech Rep. 17 Roztoky Prague, Czech Rep. 14, Construction will start in 2008; completion scheduled for , Construction started in 2007; completion scheduled for 2008 Residential units 14, Construction will start in 2008; completion scheduled for

21 Projects Overview to Date Hungary - projects under development No. Asset/Project Location Nature of asset Size Sqm (GLA) 18 Dream Island Budapest, Hungary 19 Arena Plaza Extension Budapest, Hungary Major business & leisure resort Mixed use of Shopping, Residential & other 350,000 (GBA) Plaza % Status 30 Initial excavation works commenced, completion scheduled for , Under planning 20 Duna Plaza extension Budapest, Hungary 15,000 Development rights Planning under application 21 Uj Udvar Budapest, Hungary 16, Under planning 21

22 Projects Overview to Date Serbia - projects under development No, Asset/Project Location Nature of asset Size Sqm (GLA) Plaza % Status 22 Belgrade Plaza Belgrade, Serbia Shopping, entertainment and business center 90, Under planning 23 Visnjicka Plaza Belgrade, Serbia 40, Under planning 24 Kragujevac Plaza Kragujevac, Serbia 24, Under planning 22

23 Projects Overview to Date Latvia, Greece & Bulgaria - projects under development No, Asset/Project Location Nature of asset Size Sqm (GLA) Plaza % Status 25 Riga Plaza Riga, Latvia 49, Construction started in 2007; completion scheduled for Helios Plaza Athens, Greece or office 35, Planning and permits stage 27 Shumen Plaza Shumen, Bulgaria 18, Under planning 23

24 Projects Overview to Date India - projects under development No, Asset/Project Location Nature of asset Size Sqm (GLA) Plaza % Status 28 Koregaon Park Pune, India Shopping, entertainment & office 107,000 (GBA) 50 Construction started in 2008, expected completion in Kharadi Pune, India Shopping, entertainment, office & Service Apartments 225,000 (GBA) 50 Under planning 30 Trivandrum Kerala, India Shopping, entertainment, office & Apartments hotel 195,000 (GBA) 50 Under planning 24

25 Dividend Policy As explained in the Company's Admission Document, the Directors intend to adopt a dividend policy under which: Each year dividends are expected to be paid at the rate of 25% on the first 30 million of annual net profits, and thereafter at the rate of between 20% and 25%, as determined by the Directors, on any additional annual net profits which exceed 30 million The dividends will be paid on or about May-June following the publication of the financial results on the basis of the aggregate of the annual net profits accumulated during the preceding financial year The board is happy to recommend the first dividend in the amount of 57 million ( 0.14 per share), which will be paid in June with an ex dividend date of May 28,

26 Continuing our successful business model Highly successful track record of developing, letting and selling shopping & entertainment centres in CEE for over 12 years Geographic expansion beyond CEE into India Strong ability to identify new growth opportunities Flexibility and ability to anticipate and adapt to market trends Decisions to dispose of portfolio properties are based on an in-depth analysis of market situation Highly skilled management team with extensive local and business knowledge and a proven ability to source strategic development sites and design projects Extensive network and strong relationships with leading international retailers Strong and evolving brand name aids letting and pre-sales Thorough project evaluation prior to each project Successful project management - almost all projects to date finished on time and within budget 26

27 Outlook Tenant and investor demand for our high quality retail and entertainment centres in Central and Eastern Europe ( CEE ) continues to be strong Leveraging our 12 year track record and experience into new countries such as Serbia, Bulgaria, Slovakia, Ukraine and Russia as well as continuing our expansion into India Construction programs for existing portfolio projects all progressing well Exciting pipeline of assets Confident of achieving our goal to complete at least four to five developments each year and, thereby, deliver strong income and capital growth for our shareholders We look forward to the future with considerable confidence. 27