Interim Results Presentation. June 2013

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Transcription:

Interim Results Presentation June 2013 1

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

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

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

Financial performance Distribution per share ( cents) Adjusted NAV per share 30 Jun 13 31 Dec 12 30 Jun 12 31 Dec 11 30 Jun 11 31 Dec 10 12.93 12.05 11.24 10.48 9.77 9.26 3.10 2.88 2.63 2.43 2.33 2.22 Gearing* 18.9% 25.0% 33.9% 32.1% 41.9% 49.0% Shares in issue 159 277 789 144 362 152 125 461 951 102 783 693 88 497 979 76 933 734 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

Romania Macro economic Key indicators 2012 2013 2014 2015 2016 2017 Real GDP growth (%) 0.7 2.4 3.0 3.8 4.3 4.0 General gov. budget balance (% of GDP) (2.5) (2.7) (2.7) (2.7) (2.6) (2.5) General gov. debt (% of GDP) 33.3 36.9 37.3 37.9 37.8 37.1 Unemployment (%) 5.6 4.8 4.3 3.8 3.4 2.9 Price inflation (%) 3.3 4.8 3.0 3.3 3.2 2.8 2012 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 2013 6

Slovakia Macro economic Key indicators 2012 2013 2014 2015 2016 2017 Real GDP growth (%) 2.0 0.7 2.3 3.2 3.6 4.3 General gov. budget balance (% of GDP) (4.3) (3.2) (3.0) (2.7) (2.0) (1.9) General gov. debt (% of GDP) 52.1 54.8 55.8 56.0 54.3 52.7 Unemployment (%) 13.6 13.3 12.8 12.8 12.6 12.3 Price inflation (%) (EU harmonised) 3.6 1.9 2.0 2.1 2.2 2.3 Eurozone country expected to avoid recession Politically stable Moody s Country rating A2 Source: EIU Country Forecast July 2013 7

Contracted rent profile per sector million 40 35 30 25 20 15 10 5 0 Expiry profile gross rentals Retail Office Industrial 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Tenant profile gross rentals 80% 5% 15% Type A Type B Type C Weighted average duration of 5.8 years 8

Operational performance Vacancies & arrears Renewals Retail Office Industrial 9

Debt repayment profile million 80 70 60 50 40 30 20 Bank loans reimbursement schedule Alpha Bank BRD BCR Investkredit Eurohypo Nord LB KBC Bank Unicredit/Banca Romaneasca Raiffeisen 10 0 2013 2014 2015 2016 2017 and beyond 10

Interest rate hedge position 6% 5% 4% 3% 2% 1% 0% Jun Dec Jun Dec Jun Dec Jun 2006 2007 2008 2009 2.5% 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 2013 0.0% 2014 2015 2016 2017 2018 11

Acquisition and Development Pipeline million 600 500 Money Spent Committed Controlled Secured Exclusivity 400 300 200 100 0 237 61 149 52 Developments and Extensions 22 Acquisitions 458 Further Opportunities Committed: Projects currently under construction and acquisitions finalised or committed to after 30 June 2013. 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

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 2013 13

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

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

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

Mega Mall (Bucharest, Romania) 17

Mega Mall (Bucharest, Romania) Mega Mall 18

Mega Mall (Bucharest, Romania) 19

Mega Mall (Bucharest, Romania) 20

Mega Mall (Bucharest, Romania) 21

Aupark (Zilina, Slovakia) Slovakia 22

Aupark (Zilina, Slovakia) Retail space Office space 22,000 m² 1,700 m² 99% let In process 85 000 residents Seat of a region of 700,000 residents Major Tenants Billa C&A Deichmann H&M New Yorker Catchment Population 10 minutes 90 000 20 minutes 180 000 30 minutes 380 000 23

Aupark (Zilina, Slovakia) 24

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

Aupark (Zilina, Slovakia) 26

Aupark (Zilina, Slovakia) 27

Deva Shopping Centre (Deva, Romania) 28

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 75 000 30 minutes 177 000 45 minutes 277 000 Hunedoara County 396,000 inhabitants 29

Deva Shopping Centre (Deva, Romania) 30

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

Deva Shopping Centre (Deva, Romania) 32

Deva Shopping Centre (Deva, Romania) 33

Galati Shopping City (Galati, Romania) 34

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

Galati Shopping City (Galati, Romania) 36

Galati Shopping City (Galati, Romania) Phase 1 37

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

Galati Shopping City (Galati, Romania) 39

Galati Shopping City (Galati, Romania) 40

Kaufland Value Extension (Alexandria, Romania) 41

Kaufland Value Extension (Alexandria, Romania) 42

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

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 102 000 30 minutes 138 000 45 minutes 175 500 Mehedinti County 255,000 inhabitants 44

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

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

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

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

Targu-Jiu Shopping City (Targu-Jiu, Romania) 78,550 residents GLA 26,799 m² Catchment Population 15 minutes 98 500 30 minutes 149 500 45 minutes 323 500 Gorj County 335,000 inhabitants 49

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

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

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

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

The Office (Cluj, Romania) 54

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

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

The Office (Cluj, Romania) 57

The Office (Cluj, Romania) 58

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

Questions & Answers 60