Interim Results Presentation. June 2013

Transcription

1 Interim Results Presentation June

2 Introduction A Romanian focused property investment company Distribute cash dividends (or return of capital & share subscription) on a semi-annual basis Invest in properties with long term multinational tenants with leases in Euro In-house property management, asset management, property investment & property development via an integrated approach 2

3 General strategy The relationship between retained distributable earnings, property developments, cash holdings & distribution growth per share Listed securities Retail regional dominance Office A-grade in prime locations, cities with significant multi-national tenant presence Increase in scale Expansion beyond Romania 3

4 Highlights Distribution per share 15.00% Recurring distributable income per share 17.27% Inclusion in the JSE mid-cap index Major progress in expansion of acquisition and development pipeline First major acquisition outside Romania 4

5 Financial performance Distribution per share ( cents) Adjusted NAV per share 30 Jun Dec Jun Dec Jun Dec Gearing* 18.9% 25.0% 33.9% 32.1% 41.9% 49.0% Shares in issue Property portfolio analysis % by gross rental % by value % by area Retail 40% 43% 45% Office 55% 54% 45% Industrial 5% 3% 10% * (Debt cash) / (investment property + listed securities) 5

6 Romania Macro economic Key indicators Real GDP growth (%) General gov. budget balance (% of GDP) (2.5) (2.7) (2.7) (2.7) (2.6) (2.5) General gov. debt (% of GDP) Unemployment (%) Price inflation (%) GDP growth positively revised Improved 2013 outlook Continued political and economic stability after 2012 elections Moody s Country rating Baa3 Source: EIU Country Forecast July

7 Slovakia Macro economic Key indicators Real GDP growth (%) General gov. budget balance (% of GDP) (4.3) (3.2) (3.0) (2.7) (2.0) (1.9) General gov. debt (% of GDP) Unemployment (%) Price inflation (%) (EU harmonised) Eurozone country expected to avoid recession Politically stable Moody s Country rating A2 Source: EIU Country Forecast July

8 Contracted rent profile per sector million Expiry profile gross rentals Retail Office Industrial Tenant profile gross rentals 80% 5% 15% Type A Type B Type C Weighted average duration of 5.8 years 8

9 Operational performance Vacancies & arrears Renewals Retail Office Industrial 9

10 Debt repayment profile million Bank loans reimbursement schedule Alpha Bank BRD BCR Investkredit Eurohypo Nord LB KBC Bank Unicredit/Banca Romaneasca Raiffeisen and beyond 10

11 Interest rate hedge position 6% 5% 4% 3% 2% 1% 0% Jun Dec Jun Dec Jun Dec Jun % 2.0% 1.5% 1.0% 0.5% Dec 5 year SWAP 3month Euribor CAP Jun 2010 Dec Jun 2011 SWAP Dec Jun 2012 Dec Yield Curve SWAP rate Cap rate Jun %

12 Acquisition and Development Pipeline million Money Spent Committed Controlled Secured Exclusivity Developments and Extensions 22 Acquisitions 458 Further Opportunities Committed: Projects currently under construction and acquisitions finalised or committed to after 30 June Controlled: Projects where the land is controlled, but not yet under construction. Secured exclusivity: Projects where NEPI has exclusivity and due diligence and/or contract negotiation is ongoing. Note that capitalised interest and cost relating to committed acquisitions are not included. 12

13 Acquisition and Development Pipeline Completed since 2012 The Lakeview Office Building (Feb 2013) Timisoara Building D (Feb 2013) Alexandria Kaufland Value Extension (May 2013) Acquisitions under completion* Aupark (Zilina, Slovakia) Deva Shopping Centre (Deva) Severin Shopping Center (Drobeta-Turnu Severin) Distressed debt acquisition Sibiu Shopping City (Sibiu) * Note: Not completed as at 30 June

14 Acquisition and Development Pipeline Developments under construction Galati Shopping City (Galati) Kaufland Value Extensions: Petrosani Sfantu Gheorghe Sighisoara The Office (Cluj-Napoca) 14

15 Acquisition and Development Pipeline Permitting status of developments not yet commenced Project Location CU PUZ PUZ CU AC AC Mega Mall Bucharest Brasov Shopping City Brasov Kaufland Value Extension Vaslui Piata Victoriei Office Bucharest Targu-Jiu Shopping City Targu-Jiu Vulcan Value Centre Bucharest CU PUZ PUZ CU AC AC Urbanisation Certificate for PUZ Urban Zoning Plan Urbanisation Certificate for AC Building Permit 15

16 Acquisition and Development Pipeline Zilina Slovakia Cluj-Napoca Deva Romania Galati Targu Jiu Braila Drobeta-Turnu Severin Bucharest Alexandria 16

17 Mega Mall (Bucharest, Romania) 17

18 Mega Mall (Bucharest, Romania) Mega Mall 18

19 Mega Mall (Bucharest, Romania) 19

20 Mega Mall (Bucharest, Romania) 20

21 Mega Mall (Bucharest, Romania) 21

22 Aupark (Zilina, Slovakia) Slovakia 22

23 Aupark (Zilina, Slovakia) Retail space Office space 22,000 m² 1,700 m² 99% let In process residents Seat of a region of 700,000 residents Major Tenants Billa C&A Deichmann H&M New Yorker Catchment Population 10 minutes minutes minutes

24 Aupark (Zilina, Slovakia) 24

25 Aupark (Zilina, Slovakia) 1 st floor (Ground floor) 2 nd floor 3 rd floor 25

26 Aupark (Zilina, Slovakia) 26

27 Aupark (Zilina, Slovakia) 27

28 Deva Shopping Centre (Deva, Romania) 28

29 Deva Shopping Centre (Deva, Romania) Major Tenants Metro Real (will become Auchan) Praktiker DIY Domo Jysk Takko DM 56,650 residents GLA 41,700 m² Occupancy 100% Extension planned 12,400 m² Catchment Population 15 minutes minutes minutes Hunedoara County 396,000 inhabitants 29

30 Deva Shopping Centre (Deva, Romania) 30

31 Deva Shopping Centre (Deva, Romania) Possible Extension Land Plot 29,390m² 31

32 Deva Shopping Centre (Deva, Romania) 32

33 Deva Shopping Centre (Deva, Romania) 33

34 Galati Shopping City (Galati, Romania) 34

35 Galati Shopping City (Galati, Romania) Braila Galati Region is known as Lower Danube Metropolitan Area Galati Galati Shopping City 400,000 residents in the two cities Braila Braila & Galati Counties Promenada Mall 812,300 inhabitants 35

36 Galati Shopping City (Galati, Romania) 36

37 Galati Shopping City (Galati, Romania) Phase 1 37

38 Galati Shopping City (Galati, Romania) Phase 2 cinema 38

39 Galati Shopping City (Galati, Romania) 39

40 Galati Shopping City (Galati, Romania) 40

41 Kaufland Value Extension (Alexandria, Romania) 41

42 Kaufland Value Extension (Alexandria, Romania) 42

43 Severin Shopping Center (Drobeta-Turnu Severin, Romania) 43

44 Severin Shopping Center (Drobeta-Turnu Severin, Romania) Major Tenants Carrefour Altex Deichmann Takko Lee Cooper 86,475 residents Existing GLA 16,574 m² Occupancy 100% Extension planned 9,447 m² Catchment Population 15 minutes minutes minutes Mehedinti County 255,000 inhabitants 44

45 Severin Shopping Center (Drobeta-Turnu Severin, Romania) 45

46 Severin Shopping Center (Drobeta-Turnu Severin, Romania) Current Future 46

47 Severin Shopping Center (Drobeta-Turnu Severin, Romania) 47

48 Targu-Jiu Shopping City (Targu-Jiu, Romania) 48

49 Targu-Jiu Shopping City (Targu-Jiu, Romania) 78,550 residents GLA 26,799 m² Catchment Population 15 minutes minutes minutes Gorj County 335,000 inhabitants 49

50 Targu-Jiu Shopping City (Targu-Jiu, Romania) 50

51 Targu-Jiu Shopping City (Targu-Jiu, Romania) 51

52 Targu-Jiu Shopping City (Targu-Jiu, Romania) Upper Basement Ground 52

53 Targu-Jiu Shopping City (Targu-Jiu, Romania) 53

54 The Office (Cluj, Romania) 54

55 The Office (Cluj, Romania) Railway Station Intl Airport The Office Business Centre Old City Centre 55

56 The Office (Cluj, Romania) 1 st & 2 nd FLOOR 3 rd,4 th,5 th FLOOR PENTHOUSE 53,287m² of office area in 3 phases GROUND FLOOR 56

57 The Office (Cluj, Romania) 57

58 The Office (Cluj, Romania) 58

59 Prospects Earnings guidance Further opportunities being pursued Two mall developments One mall acquisition 59

60 Questions & Answers 60