kempen benelux day 23 march 2012 in amsterdam - nsi€¦ · 23-03-2012 · kempen benelux day 23...
TRANSCRIPT
Kempen Benelux Day
23 March 2012 in Amsterdam
Profile
Top 3 listed Dutch mixed real estate fund
Dutch REIT / Listed on Amsterdam Euronext (Midkap AMx)
Portfolio: €2.31bn
GRI: €120.0m
Market cap: €595m
Mixed fund
2 home markets (NL, B)
Exit strategy for Switzerland
High yield fund (9,20% GIY)
Focus on retail and offices (50/50 on average)
NL: retail and offices
B: offices and warehouses
Focus on small and medium sized companies
Financial highlights
Quarterly dividend (>10% yield)
LTV target 50%, Fixed interest > 80%
80% free float, main shareholder 20%
57% 29%
13% 1%
Portfolio
offices retail
industrial residential
69%
26%
5%
NL B CH
Financial Highlights Consolidated
x €1,000 FY 2011 FY 2010
Net rental income 101.5 88.7
Direct result per share 1.19 1.26
Indirect result per share 0.14 - 0.66
Total result 62.7 25.1
Loan to value (%) 57.2 54.8
Average interest rate (%) 4.2 4.4
Average maturity loans (years) 2.1 2.0
Fixed interest loans (%) 91.3 93.9
Interest coverage ratio 2.4 2.7
NAV €12.96 €13.44
EPRA NAV €14.02 €14.11
Real estate investments 2,321,813 1,358,097
Shareholders’ equity 909,620 579,933
Shareholders’ equity NSI 781,217 579,933
Debts to credit institutions
(excluding derivatives)
1,326,166 744,188
Steady Result & Loan To Value
1.36 1.36 1.36 1.34 1.40 1.34 1.26 1.19
45,327 46,635 48,510 47,810 50,037 51,627 52,398
56,030
2004 2005 2006 2007 2008 2009 2010 up to 2011
Dividend Direct result
Direct result and Dividend
52,2 50 49,7
46,9
57,2 54,9 54,8 54,4
56 56,9* 57,2
40
45
50
55
60
2004 2005 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 04 2011
LTV
* Joint books, excluding merger effects
Business Highlights
Merger with VastNed Offices/Industrials
• €1.0 bn portfolio
• €68m (35%) book profit on acquisition
• Strong focus on Randstad
• Integration completed
Record of renewals and new leases in 2011
10,000 m² letting for the Red Elephant The
Hague
Year-end net asset value up versus end-Q3
Introduction in the Euronext Amsterdam
Midcap Index (AMx)
0
20
40
60
80
100
120
Amsterdam re
gion
Rotterdam re
gion
Utrech
t region
The Hague re
gion
Eindhoven region
Breda
Tilburg
m²
Strategy & Markets
Mechelen Campus
60,768 m²
Tenants: Borealis Polymers, Cochlear, Endemol, Haskoning Belgium
The Netherlands
16.8m inhabitants
GDP: €610bn
Belgium
10.9m inhabitants
GDP: €394bn
Germany
82.0m inhabitants
GDP: €2,492bn
France
65.0m inhabitants
GDP: €1,948bn
United Kingdom
62.0m inhabitants
GDP: €1,448bn
European Real Estate Market
Portfolio & Market Focus
Switzerland The Netherlands
* 232 properties; €1.6 billion
* Retail and Offices
* Retail: day to day shopping
10,000 m²
Yield: 7.4% (GIY)
*Offices
Focus on Randstad
Multi tenant
Approx. 5,000 m²
Yield: 9.6% (GIY)
* 4 properties: €122m
* Exit strategy in progress
Belgium
* 40 properties; €542m
* Offices and Warehouses
* Offices: multi tenant
* Warehouse on logistic
axes (North/South and
East /West
Direct Investment Result Consolidated
2011
x €1,000
per avg
share
x €1
∆ in €
2011 vs.
2010
2010
x €1,000
per avg
share
x €1
Gross rental income 119,964 2.55 16,794 103,170 2.48
Service costs not recharged - 2,751 - 0.06 - 1,013 - 1,738 - 0.04
Operating costs - 15,716 - 0.33 - 2,969 - 12,747 - 0.31
Net rental income 101,497 2.16 12,812 88,685 2.13
Financing income 1,226 0.02 1,120 106 -
Financing expenses - 39,740 - 0.84 - 6,797 - 32,943 - 0.79
Administrative costs - 4,180 - 0.09 - 834 - 3,346 - 0.08
Direct investment result before
tax
58,803 1.25 6,301 52,502 1.26
Corporate income tax - 165 - - 61 - 104 -
Direct investment result after
tax
58,638 1.25 6,240 52,398 1.26
Non-controlling interest - 2,608 - 0.06 - 2,608 - -
Direct investment result 56,030 1.19 3,632 52,398 1.26
Gross Rental Income Bridge
103,170
17,460
3,196 - 50
- 3,361
119,964
70000
80000
90000
100000
110000
120000
130000
x € 1,000
Portfolio Rent Development
Average contractual rent/m² (NL)
110,00
140,00
170,00
200,00
2002 2003 2004 2005 2006 2007 2008 2009 2010 Q12011
Q22011
Q32011
Q42011
Offices
Retail
Increase
is one-off
effect
• Market rents have bottomed out
Vacancy In Portfolio (%)
3,0 3,5 3,5 3,9 3,9
4,1
5,2 4,3
4,5 5,7 5,0 5,4
11,7 11,9 12,8
13,1
13,0
14,7 14,1
14,7
13,9
15,2
16,9
21,1
0
1,7
0
1,0 1,1
5,0
1,1
1,0
2,3 2,4 2,3 2,4
18,2
22,8
20,9
25,5
21,1
15,3
18,7 17,5
16,9
21,1
0,0
5,0
10,0
15,0
20,0
25,0
30,0
Q12009
Q22009
Q32009
Q42009
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
Retail
Offices NSI
Large-scale retail
VNOI NL
VNOI B
Vacancy In The Portfolio (in %)
16,9
27,3
21,7 22,7
Q3 2011 Q4 2011
11,0
20,8
15,6 15,9
Q3 2011 Q4 2011
Offices, NL Total portfolio
Revaluation Results Netherlands, Switzerland & Belgium
Netherlands
(x €1,000)
2011 Q4
2011
Q3
2011
Q2
2011
Q1 2011 2010 2009 2008
Offices - 31,400 - 10,278 - 5,667 - 8,795 - 6,660 - 21,435 - 37,875 - 44,871
Retail - 622 - 3,525 317 925 1,661 - 1,179 - 7,920 7,770
Industrial - 1,351 - 1,071 - 265 135 - 150 - 2,416 - 5,504 - 4,367
Residential 135 -65 - 10 20 60 - 1,747 44 - 248
Total - 33,238 - 14,809 - 5,625 - 7,715 - 5,089 - 26,777 - 51,255 - 41,716
Switzerland
(x €1,000)
2011 Q4
2011
Offices 208 - 263
Retail - 1,152 - 762
Total - 944 - 499
Belgium
(x €1,000)
2011 Q4 2011
Offices 2,556 2,556
Industrials - 6,126 - 6,126
Total - 3,571 - 3,571
8,1 8,1 8,0 8,1 8,2 8,2 8,2 8,4
6,3 6,3 6,3 6,4 6,2 6,2 6,3 6,3
6
7
8
9
Q12010
Q22010
Q32010
Q42010
Q12011
Q22011
Q32011
Q42011
offices
retail
Net yields at 31 December
Terminations & Lettings in Q4 2011
Dutch Portfolio
Terminations
Offices 23,562 m², 3.0% of the offices portfolio
Retail 1,516 m², 0.5% of the retail portfolio
Lettings
Offices Renewals: 14,120 m²
New leases: 17,495 m²
Total: 31,615 m²
Retail 16,802 m², 5,59% of the retail portfolio
Expiration of Leases
31 December 2011 (NL)
rental income x €1,000
6%
22%
14% 14% 12%
31%
23%
17% 15%
10%
13%
22%
4%
37%
21% 14%
3%
22%
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
2012 2013 2014 2015 2016 2017 e.v.
retail
offices
industrials
Lease Strategy – Client Focus
Multi tenant over single tenant:
– Spread the risk
– Accelerate occupancy rate improvement
– Aiming at smaller and medium sized business
Improving of lettability by increasing quality and sustainability
Client focus:
- Retail specialist and local managers
- CRM and vacancy management (offices)
- In-house technical management
Flexible leasing schemes at certain dedicated locations
Example: La Tour,
14,000 m² Office Building
Q2 2010:
• E&Y leaves
• occupancy rate drops below 30%
Q4 2010:
• dedicated commercial manager
hired
• Multi tenants lease strategy
Q3 2011: 85% let
Negligible investments
30%
85%
100% vacant since 2007
VNOI’s strategy: single tenant
Q4 2011: NSI decides for a multi tenants
strategy
€6m = €600 / m² investment
€1.7-2.5m annual rental income
€7-9m value increase expected in a 1-3 year
period
Branding NSI Offices
Example: De Rode Olifant Den Haag
Branding NSI Offices Example: De Rode Olifant Den Haag
Outlook 2012
Managing the balance sheet
• Disposal program smaller assets mainly offices NL
• Swiss properties
Fully using synergies
• Improving former VNOI portfolio (client focus occupancy)
• 2.0 – 2.5m cost synergies
Branding NSI’s office portfolio
• Alliances with operators
(Re)development of properties
• Shopping centre Keizerslanden, Deventer
• Extension of several smaller shopping centres
Redevelopment of Properties
Shopping centre Keizerslanden Deventer
To be constructed 7,660 m2 , to be renovated 7,430 m2
Expected extra rental income €1.6m
Value before redevelopment €18.9m
Expected Investment of €21m
Expected value after redevelopment €45.8m
Demolition works: Q1 2012, Construction starts Q4 2012
Expected completion in 2014
Financials
Archimedesweg Leiden
2,500 m²
Tenants: Proxy, Xendo
IFRS Merger Accounting
In this presentation the following applies:
The consolidated P&L only includes the Q4 2011 results of
the VNOI real estate portfolio
The consolidated balance sheet at year-end 2011 includes
the entire VNOI real estate portfolio
The figures of NSI over the first three quarters of 2011 and
the 2010 comparable figures have not been adjusted
For comparison purposes, we will occasionally deviate from the
above and present pro forma combined figures. In such case,
this will be explicitly stated on the slide.
Balance Sheet Consolidated
x €1,000 NSI
30-09-11
VNOI
30-09-11
Adjust-
ments
Combined
30-09-11
Combined
31-12-11
Total fixed assets 1,363,083 946,869 29,545 2,339,497 2,334,212
Total current assets 16,278 16,494 - 3,816 28,956 18,356
Total assets 1,379,361 963,363 25,729 2,368,453 2,352,568
Total shareholders equity 550,210 367,902* 22,569 940,681* 909,620*
Total long-term liabilities 616,408 477,717 465 1,094,590 1,186,623
Total current liabilities 212,743 117,744 2,695 333,182 256,325
Total equity and
liabilities
1,379,361 963,363 25,729 2,368,453 2,352,568
IFRS 12.71 13.41 13.47 12.96
EPRA 13.58 14.50 14.43 14.02
Equity value VNOI 262,641
Consideration
transferred
194,480
Result from bargain
purchase
68,161
* including minority share
Indirect Investment Result Consolidated
x €1,000 2011 2010
Revaluation of real estate investments - 37,753 - 24,761
Revaluation of other investments - 2,433 1,283
Net result on sales of investments 835 - 247
Movements in market value of financial
derivatives
- 13,608 328
Exchange-rate differences - 106 - 905
Allocated management costs - 1,592 - 1,303
Merger costs - 8,141 - 1,283
Result from bargain purchase 68,161 -
Indirect investment result before tax 5,363 - 26,888
Corporate income tax - 722 - 426
Indirect result after tax 4,641 - 27,314
Indirect result attributable to minority
interests
2,034 -
Indirect investment result 6,675 - 27,314
Portfolio Bridge
1,360,689
970,663
9,333
14,994
-4,528
- 33,238
- 944
- 3,571
3,365
2,316,763
1.200.000
1.450.000
1.700.000
1.950.000
2.200.000
2.450.000
x € 1,000
Direct Investment Result Per Quarter, Consolidated
x €1,000 Q4 2011 Q3 2011 Q2 2011 Q1 2011
Gross rental income 42,575 25,695 25,823 25,871
Service costs not recharged - 1,469 - 467 - 408 - 407
Operating costs - 4,902 - 3,515 - 3,750 - 3,549
Net rental income 36,204 21,713 21,665 21,915
Administrative costs - 1,819 - 713 - 649 - 999
Interest - 14,776 - 8,192 - 7,475 - 8,071
Direct investment result before tax 19,609 12,808 13,541 12,845
Corporate income tax - 113 18 - 51 - 19
Direct investment result 19,496 12,826 13,490 12,826
Ex minority share 16,888 12,826 13,490 12,826
Direct Investment Result Zooming in on Q3 and Q4 (incl. pro forma combined Q3 2011 numbers for comparison purposes)
x €1,000 Q4 2011
NSI + VNOI
Q3 2011
NSI + VNOI
Q4 2011
NSI
Q3 2011
NSI
Q4 2011
VNOI
Q3 2011
VNOI
Gross rental income 42,575 44,911 25,115 25,695 17,460 19,216
Service costs not
recharged
- 1,469 - 913 - 742 - 467 - 727 - 446
Operating costs - 4,902 - 5,437 - 3,895 - 3,515 - 1,007 - 1,922
Net rental income 36,204 38,561 20,478 21,713 15,726 16,848
Administrative costs - 1,819 - 1,944 - 1,050 - 713 - 769 - 1,231
Interest - 14,776 - 15,639 - 8,247 - 8,192 - 6,529 - 7,447
Direct investment result
before tax
19,609 20,978 11,181 12,808 8,428 8,170
Corporate income tax - 113 - 143 - 39 18 - 74 - 161
Direct result 19,496 20,835 11,142 12,826 8,354 8,009
Ex minority share 16,888 5,746
Loan Duration
1000
51000
101000
151000
201000
251000
301000
351000
401000
451000
501000
2012 2013 2014 2015 2016 2017 2019 2022
x € 1,000
Refinancing 2012 2/3rds covered
NL: Over €100 mln refinanced since merger date
Be: € 130 mln refinanced in 2012, first expiry = € 10 mln end of
2013
Negotiation to extend €150 mln NSI syndicated loan to 2015
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
Netherlands Belgium Switzerland
Fixed Float Total Hedged % Fixed Maturity Interest %
NL 128.1 765.2 893.2 746.6 97.9% 1.7 4.4%
CHF 80.9 - 80.9 - 100% 1.4 3.3%
BE 74.3 211.3 285.7 120,0 68.0% 3.2 3.9%
Total 283.3 976.5 1,259.8 866.6 91.3% 2.1 4.2%
Loan book & Hedging per country
Hedge portfolio of swaps: No overhedged positions
Maturity in the Netherlands to be extended