The golden mile. FY 2014 Results

Transcription

1 The golden mile FY 2014 Results

2 QRF SUCCESSFULLY COMPLETES ITS FIRST YEAR AS A LISTED COMPANY 1I Qrf in a nutshell 2I Strategy 3I Accomplishments of I Key portfolio statistics 5I Financials 6I Qrf share 7I Outlook

3 1I QRF IN A NUTSHELL

4 Qrf in a nutshell General company information Property portfolio Qrf is a Belgian REIT listed on Euronext Brussels since December 2013 Qrf is a pure player investing in Belgian retail properties... 27% Fair Value MEUR 73% Inner-city Periphery with a focus on inner-city retail (73% inner-city / 27% periphery) Location HQ : Antwerp, Belgium Market capitalisation of 91,6 MEUR (1) Fair value of the portfolio of 139,2 MEUR Shareholder structure 6,4% 6,2% 5,1% Familie Dembitzer BNP Paribas Investment Partners Belgium NV Capfi Delen Asset Management NV 82,3% Free float 4 (1) Based on closing price as of 25 February 2015

5 Management team ANNELEEN DESMYTER CEO PREBEN BRUGGEMAN CFO BERT WEEMAES COO Founding Partner of Quares Founded CC Company NV, currently Quares Residential Agency, in 2004 Formerly project developer in corporate real estate for Eurinpro Retail experience with Quares Retail Fund, Quares Retail Fund 2 and the bond issue for the acquisition of the high street shopping centre Century Center Antwerpen Previously active on capital markets operations and M&A transactions in the real estate sector at Bank Degroof Prior equity analyst at Bank Degroof covering the listed real estate sector Former director at City Mall, a real estate retail developer Previously held positions as member of the Board, CFO and Development & Real Estate Director at Decathlon Benelux Retail experience with k Kortrijk, Les Grands Prés Mons expansion and Shopping Le Côté Verre Namur and the expansion of Decathlon Benelux 5

6 2I STRATEGY

7 WE INVEST IN, (RE)DEVELOP AND RENT OUT PRIME RETAIL REAL ESTATE IN THE GOLDEN MILE OF BELGIAN CITIES 7

8 Our vision on cities Centralised social & cultural life, economic activity and increased mobility are key drivers for city development Growing population supports increasing consumer spending and retail activity VIBRANT SOCIAL & CULTURAL LIFE ECONOMIC ACTITVITY & EMPLOYMENT INCREASED MOBILITY & DESTINATION PROXIMITY POPULATION GROWTH IN THE 15 LARGEST FLEMISH CITIES AND BRUSSELS 1,3 1,25 1,2 1,15 1,1 1,05 1 0, Source: Belgian FOD Economie & Studiedienst Vlaamse Regering Antwerpen Mechelen Beringen Genk Hasselt Aalst Dendermonde Gent Sint-Niklaas Leuven Brugge Kortrijk Oostende Roeselare Turnhout Brussels Hoofdstedelijk Gewest 8

9 Our vision on the Golden Mile Must-have locations for retailers High liquidity of properties Defensive play Scarcity effect 9

10 Investment & diversification strategy Asset type - Focus on high quality retail properties on city locations - Properties with shop windows > 5 meter Location - Located in high streets that are dominant in their catchment area - i.e. the golden mile in catchment areas of > 50,000 consumers Focus on : Quality and accessibility of the assets Quality of the tenants and the underlying rental contracts Adherence to laws and regulations Re-rental potential of the property 10

11 3I ACCOMPLISHMENTS OF 2014

12 Market update ,00% Yields remain stable over Q1 (*) Rents: under pressure after years of growth, but holding steady over Q1 (**) 7,00% 5,00% 6,00% 5,00% 4,00% Main street prime rents (in EUR) 3,00% ,00% -1,00% 0,43% -0,40% 2009 Q Q Q Q Q Q Q1 Retail warehouse Shopping centers Inflation Retailers have steady expansion plans (***) % retailers who consider expanding in the upcoming 12 months (by sector) 100% 90% 80% 70% 60% 50% 40% Main street Belgian Government Bond yield 10y Fashion Food Household articles Sport & Leisure Q1 Brussel - Rue Neuve Gent - Veldstraat Liège - Vinave d'ile Brussel - Avenue Louise Antwerpen - Meir Brugge - Steenstraat Hasselt - Hoogstraat 12 (*) JLL, Cushman, De Tijd, Statbel (**) Cushman (***) CBRE

13 365 days of evolution and growth 3 September November December February en 22 April August September November

14 Main highlights 2014 Highlights Focus on Belgian inner-city retail properties that are dominant in their catchment area 22% growth in 2014 Resulting in 1,6 MEUR yearly rent Diversified in terms of tenants, individual asset size and geographical spread Acquisitions in Dendermonde, Tongeren, Antwerpen, Leuven and Hasselt with a nice tenant mix Change of goal : B-reit structure By EGM on November 7, 2014 Same advantages Focus on operational level Active portfolio management 8 new rental contracts 4 renewals of rental contracts Sustainability and social responsibility Establishing sustainable relationships with stakeholders Being attentive to environmental impact Supporting young artists which promote the inner-city 14

15 Highlights of 2014 Hasselt Tongeren Tongeren Antwerpen Dendermonde Leuven Heist o/d Berg 15

16 Highlights of 2014 Date of transaction City Street Tenant(s) GLA Fair Value on date of acquisition February 2014 Tongeren Maastrichterstraat 20 Soumatec / Ici Paris XL 783 m² 1,6 MEUR February 2014 Tongeren Maastrichterstraat 48 C&A 921 m² 2,0 MEUR April 2014 Dendermonde Oude Vest We, VDAB, The Phone House, Twice As Nice, Panos, Hunkemöller, Neckerman, Hans Anders m² 4,2 MEUR April 2014 Antwerpen Keyserlei Century Center Parking Apcoa 229 parkings 5,1 MEUR April 2014 Heist-op-den- Berg Bergstraat Esprit, Hunkemöller 923 m² 3,6 MEUR August 2014 Leuven Diestsestraat 137 Bershka m² 7,1 MEUR September 2014 Hasselt Koning Albertstraat 60 G-Star 451 m² 2,6 MEUR 16

17 Highlights of 2014 Portfolio growth 7 acquisitions on 6 locations Letting activities 8 letting transactions Focus on inner-city From 66% to 73% innercity retail real estate Change of goal Status of Regulated Real Estate Company (RREC) 17 Photograph: Wim Tellier

18 4I KEY PORTFOLIO STATISTICS

19 Clear focus on inner-city 100% Type of property (% of Fair value) 90% 80% 70% 60% 50% 40% 30% 20% 10% 34% 66% 27% 73% 0% Situation on IPO 18/12/2013 Situation on 30/12/2014 Inner-City Periphery 20

20 Well-spread tenant base 1,9% 2,2% 2,1% 1,7% Spread by sector (% Passing Rent) 2,8% 3,4% 3,7% Fashion (H&M, Bershka, G-Star, ) Sport & Leisure (HEMA, Neckerman, Oxygen, Standaard,..) Interior & Decoration (Casa, Euro Center, ) Horeca (Panos, Mc'Donalds, ) 3,6% Car (Citroën) 4,0% 4,1% FASHION 48,7% Electro & Telecom (Van den Borre, Phone House, ) Parking Jewelry (Twice as Nice,...) Guarantee on vacany 4,7% Beautycare (Kruidvat, Hans Anders, ) Garden & do-it-yourself (Brico, ) 4,9% Office articles (Ava papierwaren, ) 6,0% 6,1% Shoes (Torfs, Tamaris, Janelli, ) Food (Lidl, ) Varia 21

21 Well-spread tenant base Tenant spread (% Passing rent) Mc DONALD'S 2,4% C&A 2,5% Esprit 3,6% Piocheur Apcoa 3,6% 4,0% FASHION Bershka 4,6% Citroën 4,7% Sissy Boy 5,7% H&M 12,7% 22

22 RISK OF PRICE COMPETITION Low High Tenant and sector risk framework Consumer electronics & Media Toys & Games Fashion Food Health & beauty Low SECTOR IMPACT High 23 Source: CBRE Global Investors

23 RISK OF PRICE COMPETITION Low High Well spread tenant and sector risk 4,1% Consumer electronics & Media Toys & Games Fashion 48,7% 3,4% 1,9% Food Health & beauty Low SECTOR IMPACT High 24 Source: CBRE Global Investors

24 High and stable occupancy rate 100% 99,5% 99,7% 98% 96,8% 96% 96,0% 94% 92% 90% 88% 86% 30/12/ /12/ Physical occupancy rate Financial occupancy rate

25 Portfolio valuation Real estate portfolio (in K EUR) Fair value of the real estate portfolio Gross rental surface (in m²) Gross portfolio yield (including rental guarantees) 6,2% 6,2% Gross portfolio yield (excluding rental guarantees) 6,0% 6,1% Financial occupancy rate 99,7% 99,5% Physical occupancy rate 96,0% 96,8% FASHION Geographical spread (% Fair Value) Geographical spread (% Fair Value) 5,6% 2,7% 1,8% 1,7% Antwerpen 5,1% Luik 20,3% 74,1% Vlaanderen Wallonië Brussel 5,6% 9,7% 11,8% 45,7% Limburg Oost-Vlaanderen Brussels Hoofdstedelijk Gewest Vlaams-Brabant 15,9% Luxemburg 26 West-Vlaanderen Henegouwen

26 5I FINANCIALS

27 FY 2014 consolidated income statement P&L (in K EUR) Financial Year 2014 Net rental income Property result (-) Property costs -382 (-) General costs and other operating income and costs Operating result before result on the portfolio Operating margin 78,2% (+/-) Portfolio result (IAS 40) (+/-) Financial result (-) Taxes -72 (-) Minority interests 13 Net result - group share (IFRS) (-) Portfolio result (IAS 40) (-) Changes in fair value of non-effective hedging instruments (IAS 39) - Net current result - group share (EPRA) Per share data (in EUR) Financial Year 2014 Weighted average number of shares Net result - group share (IFRS) 0,88 Net current result - group share (EPRA) 1,40 28

28 FY 2014 consolidated balance sheet Balance sheet (in K EUR) Non-current assets Intangible assets 4 - Investment properties Other non-current assets 43 4 Current assets Trade receivables Tax receivables and other current assets Cash and cash equivalents Deferred charges and accrued income Total assets Total sharehoders' equity Shareholders' equity Minority interests Non-current liabilities Non-current financial debts Other non-current liabilities Current liabilities Current financial debts - - Other current liabilities Total sharehoders' equity and liabilities Per share data (in EUR) Total number of shares outstanding NAV (IFRS) 23,13 22,73 NAV (EPRA) 23,87 22,81 29

29 Financial structure Debt maturities (M EUR) 35,0 Comments Financial debt amounts to 62 M EUR 30,0 25,0 20,0 15,0 30,0 Weighted average remaining duration of drawn credit lines of 2,9y Debt is provided by 3 financial institutions 10,0 5,0 17,0 15,0 No expiry dates in FY M EUR committed non-withdrawn credit lines 0, Hedging 3,23% Debt ratio of 45,4% with a max. target ratio of 55% (additional investment capacity of 31 MEUR) 97% hedged by Interest Rate Swaps with the same duration as the drawn credit lines 96,77% Fixed interest rate Floating interest rate Perfect match between duration of hedging instruments and hedged credit lines Average financing cost of 2,64% in FY

30 6I QRF SHARE 31

31 Qrf share Key data per share Evolution of stock price and NAV (EUR) Per share data (in EUR) Total number of shares outstanding Closing price (end of year) 25,90 24,92 Market capitalisation ,0 26,0 25,0 Net current result - group share (EPRA) 1,40 Gross dividend 1,30 Pay-out ratio 93,1% Gross earnings yield (on closing price end of year) 5,4% Gross dividend yield (on closing price end of year) 5,0% 24,0 23,0 22,0 21,0 NAV (IFRS) 23,13 22,73 20,0 Premium to NAV (IFRS) 12,0% 9,6% NAV (EPRA) 23,87 22,81 Premium to NAV (EPRA) 8,5% 9,2% Stock price NAV per share (IFRS) 32

32 7I Outlook

33 Expectations for Focus on Golden Mile 5 Sustaining dividend level 2 Diversification in regional and main cities in Belgium 4 Further growth by acquisitions 3 Straight-forward operating 34

34 THANK YOU QUESTIONS? 35

35 Financial calendar 2015 March 2, 2015* Yearly results 2014 Date to be determined Annual report 2014 May 8, 2015* Key Quarterly results Q May 19, 2015 at 2.00 p.m. May 21, 2015 May 22, 2015 May 26, 2015 General Shareholders Meeting Ex-dividend date Record date Payment date August 21, 2015* Results of the first half year of 2015 (per 30/06/2015) November 13, 2015* Key Quarterly results Q * After close of trading.

36 Board of directors - Independent directors INGE BOETS CHAIRMAN JAN BROUWERS FRANK DE MOOR Former Partner at Ernst & Young & leader of the Ernst & Young Global Risk Practice. Mandates: Euroclear Belgium, Econopolis, Member of the Audit Committee for the Flemish Parliament, Advisor for Board Effectiveness with Guberna. Former Managing Director with Morgan Stanley in London, Portfolio Manager at Blue Crest Capital. Director and shareholder of Jaran Capital and Independent Director of Proviron Holding. CEO of Q-Park Member of the Managing Committee of the Raad Nederlandse Detailhandel, Managing Board of E- Commerce Platform,Member of the Board of Stichting Leerstoel Detailhandelsmarketing. 37

37 Board of directors - Quares directors ANNELEEN DESMYTER CEO HERMAN DU BOIS FREDDY HOORENS Founding Partner of Quares. Founder of CC Company, (Quares Residential Agency). She started her career as a Project Manager for projects in the Netherlands and Belgium with Eurinpro (Goodman) a development firm with focus on logistic and office real estate. Founding Partner of Quares. Previously Founder APM NV, Managing Director with BNP Paribas Real Estate Benelux Financial Manager & General Manager at Aranäs,, a Swedish REIT. Founder of asset and property management firm APM NV sold to Atisreal in Started his career with Coopers & Lybrand, now PwC. Founding Partner of Quares. Founder of SPM (Quares Property Management), CC Company, (Quares Residential Agency). Previously, Property Manager with Siref (Belgian REIT). Exercised different management functions at a.o. Bellewaerde Park, Walibi, Verelst and Eurinpro (Goodman). 38

38 The advantages of a listed Belgian REIT GENERAL FINANCIAL/FISCAL PORTFOLIO MANAGEMENT & STRATEGY Investment company with min. capital of 1,200,000 Naamloze Vennootschap (NV) / Commanditaire vennootschap op aandelen (Comm. VA) One or more statutory administrators Real estate investment focus FSMA accredited + supervision Minimum 3 year financial plan Promoter acts as fund initiator and manager Assets at fair value (valuation each trimester by independent expert) Maximum leverage of 65% The taxable basis is negligible for corporate income tax purposes Distribution of at least 80% of the profit Withholding tax of 25% on distributed dividends Bullet type credit facilities are common financing sources Risk diversification over larger portfolio Minimum diversification (single asset < 20% total assets) Increased liquidity Average costs decrease if direct fixed costs are spread over larger portfolio Negotiation power with respect to tenants and suppliers increases with portfolio size 39

39 Disclaimer Qrf CVA (hereafter Qrf ), having its registered office at Leopold de Waelplaats 8/1, 2000 Antwerp, is a public Regulated Real Estate Company, incorporated under Belgian law and listed on Euronext Brussels. This presentation is directed to financial analysts and institutional investors and is not to be considered as an incentive to invest or as an offer to acquire Qrf shares. The information herein is extracted from Qrf s annual and half-yearly reports and press releases, but does not reproduce the entire content of these documents. Furthermore, this presentation contains forward-looking statements involving risks and uncertainties, including statements regarding Qrf's plans, targets, expectations and intentions. Readers are reminded that such forward-looking statements involve known and unknown risks and are subject to major corporate, economic and competitive uncertainties to a large extent outside the control of Qrf. Should one or more of these risks or uncertainties materialize, or should assumptions used prove incorrect, the final results could substantially vary from those anticipated, expected, estimated or projected. Qrf consequently assumes no responsibility for the accuracy of these forecasts. 40