Ackermans & van Haaren Investor's day Presentation Leasinvest Real Estate 4 December 2015

Transcription

1 Ackermans & van Haaren Investor's day Presentation Leasinvest Real Estate 4 December 2015

2 LEASINVEST REAL ESTATE WITHIN AvHGROUP LRE PROFILE Fair value direct portfolio 757 M Fair value indirect (incl. share Retail Estates) 825 M Market capitalization 445 M Shareholders Ackermans & van Haaren 30% AXA 29% Free float 41%

3 MISSION STATEMENT Public Regulated Real Estate Company (BE REIT) Leasinvest treal lett Estate SCA (created din 1999) invests in high quality and well situated retail, offices & logistics, in the Grand Duchy of Luxembourg, Belgiumand Switzerland. Leasinvest RE aims for achieving acceptable rental & dividend yields with potential capital gains. As a regulated real estate company LRE benefits from a number of fiscal advantages, that are comparable to those of Real Estate Investment Trusts (REITs) in the United States, Fiscale Beleggingsinstellingen i lli (FBI) in the Netherlands and Sociétés d Investissements Immobiliers Cotées (SIICs) in France.

4 STRATEGY: OPPORTUNITY DRIVEN Our strategy evolved from focus on mainly offices in Belgium towards a current focus on mainly retail and offices in the Grand duchy of Luxembourg and Belgium. RETAIL 6% LOGISTICS 25% OFFICES 69% 1999 BELGIUM 100% LOGISTICS 18% 2015 SWITZERLAN D 6% RETAIL BELGIUM 46% 33% LUXEMBOUR OFFICES G 36% 61%

5 LEASINVEST REAL ESTATE STRATEGY INVESTMENT STRATEGY stable economic countries: Luxembourg, Belgium & Switzerland focus on retail sector (retail parks/ medium sized shopping centers) opportunity driven for well located offices in/near CBD divestment of non strategic buildings shrewd acquisitions & timely divestments proactive portfolio management DEVELOPMENT STRATEGY (re )developments generating capital gains ongoing quality improvement portfolio sustainable redeveloped buildings COMMERCIAL STRATEGY tenant is key proactive commercial approach for fulfilling tenants needs with appropriate sustainable professional housing

6 MILESTONES IN LRE'S EVOLUTION FOCUS OFFICES BELGIUM 2006 LEASINVEST IMMO LUX 2008 METRO LUX KNAUF SHOPPING CENTERS LUX 2014 RETAIL CH DIVESTMENT OF NON STRATEGIC BUILDINGS, MAINLY OFFICES Q32015 BELGIUM (FV M) LUXEMBOURG (FV M) SWITZERLAND (FV M) OFFICES RETAIL LOGISTICS 46% 36% 18% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

7 LUXEMBOURG RETAIL 59% & OFFICES 37% % 37% 4% Q32015 LUXEMBOURG (FV M) OFFICES RETAIL LOGISTICS 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

8 BELGIUM OFFICES 40% & LOGISTICS 47% % 13% Q % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% BELGIUM (FV M) OFFICES RETAIL LOGISTICS

9 Luxembourg Belgium Switzerland KEY BUILDINGS Knauf shopping centers (North Luxembourg) Retail park (Strassen) Offices Monnet (Kirchberg) Offices Montimmo Luxembourg CBD Offices Royal20 Luxembourg CBD CFM Cloche d'or Luxembourg Offices Montoyer Brussels CBD Offices Square de Meeûs Brussels CBD The Crescent business center Brussels periphery Brixton retail park Brussels periphery State Archives Bruges Retail Etoy Switzerland (Vaud)

10 CURRENT & FUTURE REALIZATIONS sales agreement ('vente à terme ) for Royal20 mid 2016 for 62.5 M sale is opportunity driven 100% pre let to China Merchants Bank 10 year fixed with annual rent of 3 M important capital gain objective = BREEAM excellent building vacant: Q building permit requested office project of 5,936 m 2 reception by 2017 objective = BREAAM excellent for reconstruction one of few new buildings in Brussels CBD building vacant: 01/2015 renovation works (e.g. new airco system) completed in 09/2015 office project of 3,866 m 2 100% let as of start date of last contracts on 15/09 and 01/10/2015 building vacant: 07/2017 building permit requested office project of 6,570 m 2 reception by 2018 objective = BREAAM excellent for reconstruction

11 Shareholders' equity 30/06/ CREATING CAPITAL GAINS (30/06/2015) Luxembourg was key in realizing capital gains and more than compensated the capital losses on the Belgian portfolio Miscellaneous Capital gains Luxembourg Capital gains Belgium Dividendd distributions Current result Capital increases Shareholders' equity 30/06/

12 CREATINGSHAREHOLDER VALUE: ROYAL 20 PURCHASE EXISTING BUILDING ON OUTSTANDING LOCATION ACTUAL SHELLSTRUCTURE STRUCTURE & PRE LEASED NEW OFFICE BUILDING ROYAL20

13 CAPITAL GAINS LUXEMBOURG SUCCESSFUL REDEVELOPMENTS GENERATE IMPORTANT CAPITAL GAINS UNREALIZED CAPITAL GAIN 14 M REALIZED CAPITAL GAIN 15.2 M UNREALIZED CAP. GAIN 2 M UNREALIZED CAPITAL GAIN 1.2 M TO BE REALIZED CAPITAL GAIN 23 M

14 CAPITAL RECYCLING 223 M DIVESTMENTS VERSUS 380 M INVESTMENTS Timely divestments of non strategic buildings Shrewd acquisitions, cornerstones of our proactive portfolio management % % 60% % % 67 40% 60 30% % % % 5% 12 10% 5% 5 1% % 0 2% 0% H 2015 INVESTMENTS DISPOSALS PREMIUM ABOVE APPRAISALS VALUE

15 A SOURCE OF RECURRING INCOME % % % RENTAL INCOME ( 1,000) NET CURRENT RESULT ( 1,000) NET RESULT ( 1,000)

16 OCCUPANCY RATE & RENTAL DURATION the focus of our commercial efforts is a high a major element of our commercial strategy is occupancy rate to extend the duration of the leases the occupancy rate in Luxembourg has been continuously high and the Swiss buildings are thanks to a proactive approach contracts are renegotiated largely in advance 100% let (re)developments are limited to outstanding locations as Royal20 (CBD Lux) & Montoyer and Square de Meeûs (CBD Brussels) 100% 99% 98% 97% 96% 95% 94% 93% 92% 91% 90% 89% 88% 87% 86% 85% Jun 00 Jun 01 Jun 02 Jun 03 Jun 04 Jun 05 Jun 06 Jun 07 Jun 08 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec Sep ,0 6,0 5,0 4,0 3,0 2,0 1,0 Jun 06 Jun 07 Jun 08 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Jun 15 TOTAL BE LU CH TOTAL BE (years) LU (years) CH (years)

17 STABLE RENTAL YIELD GEOGRAPHICAL & BY ASSET CLASSES 9,00% 8,50% 8,00% 7,50% 7,00% 6,50% 7,23% 8,50% 8,00% 7,50% 7,00% 6,50% 7,23% 6,00% 6,00% 5,50% 5,50% 5,00% 5,00% 4,50% 4,50% Q Q3 BELGIUM LUXEMBOURG SWITZERLAND TOTAL OFFICES RETAIL LOGISTICS TOTAL

18 FINANCIAL STRATEGY funding diversification: 56% banks (9 banks), 18% commercial paper & 26% bonds 8% 7% 6% 5% 4% 3% 2% 1% 0% funding cost (excl. hedging premiums) slightly reduced to 3.50% (2014: 3.63%) due to extension of some existing hedging contracts total committed credit lines (incl. bonds): M (2014: M ) 90 million headroom (incl. 100% coverage of outstanding CP) at 30/09/2015 duration stands at y (2014: y) Q3 Run off credits/bonds RENTAL YIELD FUNDING COST

19 HEDGING STRATEGY hedging strategy is based on 75% (first 5 years) & 50% (following 4/5 years) debt financing approx. 84% hedged of which 75% fixed through fixed rate debt (34%), fixed interest rate swaps (IRS) (33%), floating capped (9%) and CCS (8%) no interest rate floors duration at 6.55 years (2014: 6.13 years) 100% 90% 80% 70% 60% 50% 40% Fix ratio Hedge ratio 30% 20% 10% 0%

20 KEY FINANCIALS Q /09/ /09/2014 Rental income ( M) Net result ( M) Net current result ( M) Occupancy rate 97.31% 95.92% Average duration leases (years) Debt ratio 53.29% 53.18% Funding cost 3.53% 3.66% Average duration credit lines (years) Average duration hedges (years)

21 STEADY DIVIDEND GROWTH OVER THEYEARS gross dividend increased to 4.55 over 2014 (2013: 4.50) gross dividend id d yield ildof 4.96% (31/12/2014) consolidated pay out ratio 2014: 86% 5,0 14% 4,5 4,0 12% 3,5 10% 3,0 2,5 2,0 8% 6% 1,5 4% 10 1,0 0,5 2% 0, % GROSS DIVIDEND GROSS DIVIDEND YIELD GLOBAL RETURN GPR

22 SHARE PRICE AT PREMIUM TO NAV Share price NAV (investment value)

23 PREMIUM/DISCOUNT EVOLUTION 50% 40% 30% 20% 10% 0% 10% 20% 30% 40% 50%

24 LRE SHARE VS EPRA INDICES Leasinvest RE is part of EPRA Belgium Index EPRA Gold Award for annual financial reports 2012, 2013 & share price LRE EPRA Eurozone Index EPRA Belgium Index

25 GPR SHARE PERFORMANCE

26 OUTLOOK FINANCIAL YEAR 2015 Except for extraordinary circumstances and new investments, the company expects to realize a slightly lower net result and a slightly lower net current result in 2015 than in 2014 due to the influence on the evolution of the rents of the planned redevelopments Monnet and Square de Meeûs. The company expects to maintain the dividend over 2015 at minimum the same level.

27 ANALYST RECOMMENDATIONS FINANCIAL CALENDAR 2015/2016 Bank Analyst Recommendation Target Date price Degroof Petercam Herman van der Loos Add /11/2015 KBC Securities Koen Overlaet-Michiels Hold /11/2015 ING Securities Jaap Kuin Hold /08/2015 Financial calendar 2015/2016 Year results 2015 (31/12/2015) 18/02/2016 Annual financial report /03/2016 / Interim statement Q1 (31/03/2016) 17/05/2016 Annual meeting shareholders 17/05/2016 Dividend payment 23/05/2016 Half year report /08/2016 / Interim statement Q3 (30/09/2016) 17/11/2016

28 INVESTOR RELATIONS CONTACTS Jean Louis Appelmans CEO Michel Van Geyte COO Piet Vervinckt CFO Jean Louis Appelmans is CEO of Leasinvest Real Estate (since 1999) and of Leasinvest timmo Lux (i (since 2006). He is also director of Retail Estates. Michel Van Geyte joined Leasinvest Real Estate in August He is currently COO and director of Leasinvest Real Estate and Leasinvest Immo Lux. Piet Vervinckt joined Leasinvest Real Estate in November Before he was senior relationship manager real estate finance with BNPParibas Fortis.

29 DISCLAIMER This presentationcontains forward looking statements Suchforward looking statements involve unknown risks This presentation contains forward looking statements. Such forward looking statements involve unknown risks, uncertainties and other factors which may cause the actual results, financial conditions, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Given these uncertainties you are cautioned not to place any undue reliance on such forward looking statements, which can not be guaranteed. These forward looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation to update such forward looking statements, except to the extent and in the manner required by Belgian law.

30 BE REIT PEERS Portfolio Q (Fairvalue in M) Cofinimmo 3283 Assetclass focus offices healthcare distribution networks Befimmo 2378 offices WDP 1845 warehouses Aedifica 1036 senior housing residential Retail Estates 973 out of town retail Leasinvest Real Estate 825 retail offices Wereldhave Belgium 775 retail offices Intervest offices & warehouses 636 offices warehouses Montea 475 warehouses Vastned Retail 371 high street retail Home Invest Belgium 346 residential

31 BE REIT: MAIN CHARACTERISTICS stock exchange listing activity limited to real estate investment risk diversification: no more than 20% of the consolidated assets may be invested in a single property consolidated & statutory debt ratios of BE REIT limited to 65% of the consolidated or statutory assets quarterly valuation of the real estate portfolio by an independent real estate expert (fair value) properties carried at fair value no depreciation distribution, in the case of profit, of at least the positive difference between 80% of the corrected result and the net decrease of the debts during the financial year (RDof13/07/ art. 617 ofcompany Code) taxable basis for corporate taxes limited to sum of disallowed expenses and abnormal and benevolent advantages withholding tax of25% ondividend (to be increased to 27% as from2017) no withholding tax for non residents who are not engaged in a profit making activity a regulated real estate company cannot grant loans unless to subsidiaries supervision by the FSMA