Analyst meeting Full year results Rotterdam 15 February 2013 - PowerPoint PPT Presentation

Analyst meeting Full year results Rotterdam 15 February 2013

Portfolio & Strategy � Focus on Netherlands and Belgium � Exit strategy Switzerland; 70% assets sold; sale of 2 remaining assets ongoing � High Yield fund � Two asset classes: Offices & Retail � Anti-cyclical asset management � Active asset management � VNOI merger � Balancing portfolio over the cycle � High Yield with office portfolio � Stable cash flow from retail is backbone to optimize total return Belgium: • € 0.6 billion • GIY: 9.0% • 55% stake in listed fund Netherlands: (Intervest Offices ) • € 1.5 billion ��������� • GIY: 9.6% Office : �������� ������� • € 0.4 billion ��������� • 17 properties (233k sqm) Office : • Focus on Antwerpen- ������� • € 0.9 billion ��������� Brussels • Focus on Randstad ������� �������� ��������� Logistics: ������� • € 0.2 billion ����� Retail : • 21 properties (395k sqm) • Strategic axes: • € 0.5 billion • Nationwide regional Antwerpen- Mechelen & focus Antwerpen – Luik • Nr 2 position 2

Our long term decisions Asset focus Offices & Retail; 50/50 over the asset cycle High yield profile Benelux focused Inhouse Letting teams Property & Integrally Asset Technical management managed Management and tenant Property development and management focused Marketing & business development Scale Utilizing inhouse property management Diversified and innovative leasing concepts Branding Funding Reduction LTV; < 55% Interest fixing of at least 80% 3 Diversification of funding

Highlights 2012 � Increase of 13% in direct investment result to €63.4 million (2011: €56.0 million) as result of merger VNOI; � Direct result per share €0.99 compared to €1.19 in 2011, partly due to a significant increase (13%) in number of shares outstanding � Integration VNOI; significant contribution to direct result per share � Occupancy total portfolio improved to 81.0% from 80.5% as per Q3 2012 – Occupancy of Dutch office portfolio improved to 71.3% from 70% as per Q3 2012 � In 2012 NSI refinanced in total over 60% (€507 million) of total Dutch outstanding debt 4

Highlights 2012 � NSI delivered on its Dutch asset disposal target – €47.9 million of assets, partially delivered in 2012, – In total €100.9 million of assets sold in 2012 � Total investment result -€103.1million; revaluations of the real estate portfolio - € 146.2 million in 2012 � LtV increased to 58.2% (2011: 57.2%), €35,4 million asset sales announced in January 2013, stand alone impact: LtV reduction of 0.8% � NSI will propose a change in dividend policy towards a sustainable dividend to support its strategy, of which the main elements are: – Pay out ratio 85-100% – Dividend will be linked to LtV performance 5

Towards sustainable dividend � Ability to move forward with execution of strategy is crucial and requires investments; – Regular investments in quality of assets – New concepts/ redevelopments � Proposed dividend policy: pay out ratio is geared at funding regular capital requirements – Average capital expenditure requirements in general 10-15% of direct result, resulting in pay out 85%-100% – These investments are meant to yield into sustainable future dividends. � Financial prudency to secure future investments – Aligning dividend policy with exceptional market circumstances by linking dividend policy to LtV performance; – 55% > LtV < 60%; pay-out ratio 50% of direct result in cash – LtV > 60%: pay-out ratio 50% of direct result as stock dividend � Possibility to offer stock dividend in case the circumstances are supportive � Conditional upon approval in AGM on 26 April 2013; final dividend €0.11 per share (50% of direct result per share), totalling the 2012 dividend to €0.86 per share 6

Our key priorities � Reducing LtV – NSI is highly committed to reduce LtV to below 55% – Continue disposal strategy • In 2012 €100.9 million of assets sold • An additional €35.4 announced in January 2013 • Approx. €100 million used to redeem debt � Operational – Building on operational strength – Increasing occupancy levels – Roll our HNK concept – Further improving effectiveness and efficiency – Continued cost control and driving efficiencies – Optimise value per property and sell 7

Operational highlights - Retail � Solid occupancy at 92,5% – Decrease from 94.5% in Q3 due to expiring rental guarantee; no remaining guarantees � C&A signed new contract for ‘t Loon, accelerating rebuilding activities � NSI benefiting from strategic choices to target food, in particular supermarkets and daily goods in general � Retail environment increasingly challenging, in particular large retail � Recently sold properties demonstrate active asset (cycle) management � Target for 2013 is to keep occupancy stable Development occupancy in sqm : Total area Leased 1/1/12 Leased in Vacated in Total area Leased 31/12/ 2012 1/1/12 period period 31/12/12 Area Area % Area Area Area Area % 292,913 275,723 94.1 16,036 16,963 272,018 274,878 92.9 8

Operational highlights - Offices � Turning point in occupancy; improved from 70% Q3 to 71.3% – Further improvement throughout 2013 is expected – Continued outperformance market in take up levels; NSI realized 4% of the total market take up, while portfolio represents 1.3% – Continued early renewals; actively creating negotiation momentum and managing expiration calendar; • Further improvement supported by expiration calendar; 13% of contracts will expire in 2013 (2012: 23%) � Trend of growing demand for flexible and full office concepts continues; – Roll out HNK progressing – HNK Rotterdam opened mid October; – Further roll out in portfolio progressing � “De Rode Olifant” delivered to Spaces, contract effective since mid December Total area Leased 1/1/2012 Leased in Vacated in Total area Leased 31/12/12 1 /1/12 period period 31/12/12 Area Area sqm% Area Area Area Area sqm% 644,590 488,540 75.8 79,046 108,796 609,881 433,056 71% 9

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De Rode Olifant, delivered to Spaces in December 2013 11

HNK- distinctive strength � A place to be - inspiring meeting place to work and to meet – Highly accessible; • Free entrance ‘social heart’ • Memberships • Managed offices • Traditional offices – Offering exactly what tenant needs • Services • Space • Flexibility – Translates into a well priced solution, benefiting both tenant and NSI • Lower total costs for tenants • Higher rent per sqm for NSI � HNK Rotterdam – Occupancy 30% (total property; 18,000 sqm) – Investments in HNK €2.8 million – Annualized HNK rent level €307,000 – HNK: 1,520 sqm leased at €287 per sqm 12

Operational Highlights- Belgium � Focus on renewals paid off – Offices: • New lettings 3,200 sqm • Renewals: 45,751 sqm • Occupancy improved to 85% (84%) – Logistics • New lettings: 16,552 sqm • Renewals: 82,487 sqm • Occupancy decreased to 89% (91%) � Revaluations impacted by: – Renewal contract with PwC until 2021, lower rent level (€1.4 million per annum) – Deloitte leaving Diegem office (21,302 sqm) in 2016; alternative leasing strategies being developed – Total revaluation -€13,5 million � Investments in strong performing logistics portfolio – Second distribution centre at logistics site in Oevel • Investment €7,9 million, NRI: €0.7 million – Expansion logistics site Oevel • Investment: €3.3-3.8 million, NRI €0,3 million – Redevelopment Herenthals Logistics 1, Neerland 1 in Wilrijk and Oevel. • Investment €3.3 million, NRI 0.6 million – Revaluation € 18,0 million positive 13

Expiration of Leases 31 December 2012 (NL) � We actively manage and anticipate expiration calendar; smoothening the future expiration levels � In both the office and retail portfolio; the 2013 expiration calendar is below average. The office portfolio is significantly below 2012 level (23%) � Expirations in 2013 involve a smaller number large single tenant contracts compared with 2012: (number of contract expiries) 2012 2013 > 10,000 1 0 5,000-10,000 5 0 3,000-5,000 3 3 1,000-3,000 9 6 Representing total m2: 64,269 25,024 14 rental income x €1,000

Vacancy development � Occupancy expected to improve further improvement in 2013 � Expiration calendar in 2013 and 2014 below average with limited expiries of large single tenant contracts � Increase in vacancy Retail portfolio, for a large part due to an expiry of a rental guarantee (Zuiderterras), no rental guarantees left in portfolio � Redevelopment of properties to new concepts impact vacancy until completion Date of merger VNOI 15

Portfolio Rent Development Average effective rent/sqm (NL) � Effective rent levels are adjusted for incentives remains in line with benchmark Dutch market � NSI delivered in 2012 on target to stay above €120/sqm effective rent � Alternative strategies in place to increase income per sqm 16