Company presentation May 2015 Table of contents Section 1 Summary - - PowerPoint PPT Presentation
Company presentation May 2015 Table of contents Section 1 Summary 3 Section 2 Market Overview 7 Section 3 Resilient Operations 1 1 Section 4 Capital Base Strengthened 22 Section 5 Financial Performance 25 Section 6 2015
Section 1 Summary 3 Section 2 Market Overview 7 Section 3 Resilient Operations 1 1 Section 4 Capital Base Strengthened 22 Section 5 Financial Performance 25 Section 6 2015 Initiatives 34
2
Section 7 O1 Yielding Assets 36
Office
Yielding/ Development
Leverage
Moscow
4
In the last two years assets went up about 35%; Negative revaluation due to deteriorating market conditions in 2H 2014 is 6,7%.
Changes in gross asset value (US$ MM)
1000 500 1500 2500 4200 2000 52 3500 4500 416 82
YE 2012 Olimpia Park disposal White Square acquisition Kutuzov&Greendale acquisition Legend Acquisition CAPEX & valuation changes YE 2013 iCUBE acquisition Revaluation YE 2014
114
4 021 2 987 1 001 4 200
5
3000 4000
NOI and EBITDA (US$ mln)
EBITDA Margin grew from 80% to 90% during 2012-2014 years; EBITDA for 2014 year was $319 mln and expected to be $326 mln in 2015; Estimate for 2015 based on agreed and potential discounts to tenants (11% discount on average); G&A expenses expected to decrease due to increased cost efficiency and ruble devaluation.
Notes: *NOI 2015 calculated on cash basis and doesn’t include Bolshevik NOI
6
144 292 352 353 31 32 33 27 113 260 319 326
100 150 200 250 300 350 400 2012 2013 IFRS 2014
NOI G&A EBITDA
Vacancy by geographic submarket Demand and Supply New delivery , take-up, vacancy rates by geographic submarket, FY2014 and Q12015
Take-up Delivery
200 000 5% 400 000 10% 600 000 20% 15% 800 000 25% CBD CBD>TTK TTK>MKAD Beyond MKAD
Vacancy in CBD area (core area for O1) is the lowest among submarkets. T ake-up in CBD area is higher than delivery, which limits potential vacancy growth.
Source: CBRE Research, Q1 2015.
8
CBD CBD>TTR Beyond MKAD
0% 30% 25% 20% 15% 10% 5% Q1 Q3 Q1 2010 2010 2011 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 2011 2012 2012 2013 2013 2014 2014 2015
TTR>MKAD
Vacancy
Vacancy
Rental rates are under obvious pressure. Landlords began to fix the exchange rate corridor, usually at the level of 45-60 Roubles. In addition to fixing the exchange rate corridor, landlords were offering traditional incentives in order to attract or retain tenants: longer rent free periods (6 months to 1 year), execution or financing of fit-out, reduced indexation (up to 2- 3% p.a. versus 5.3% in 2013). Moscow office yield is two times higher than in Western Europe cities.
Source: CBRE Research, Q1 2015.
9
Office Yield Comparsion
Frankfurt Warsaw Moscow Paris
3% 5% 7% 9% 11% Q4 2010 Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014
Rental rates by the year-end
Prime Class A min Class A min Class B min Prime Class A max Class A max Class B max
$1 350 $1 200 $1 050 $900 $750 $600 $450 $300 $150 $0 $1 000 $1 000 2010 2011 2012 2013 2014 2015F $900 $650 $550 $450 $300 $850 $550 $450 $400 $250
Source: CBRE Research, Q1 2015.
10
Russian sovereign bond yield reduced to mid.2014 levels. This indicates that Capitalization rates should also go back to mid 2014 levels in the next several months, if macroeconomic situation is stable.
Capitalization rates Euro -Cbonds Sovereign Russia index, YTM, eff., %, end of period
I&L Retail Office
8% 4,0% 9% 4,5% 10% 5,0% 11% 5,5% 12% 6,0% 13% 6,5% 7,0% 7,5% 14% 8,0% I 2011 Oct 13 I 2012 Jan 14 I 2013 Apr 14 I 2014 Jul 14 Oct 14 Jan 15 I 2014 20th Apr
Over 98% of Portfolio Yielding Cash (2% of GAV is development) High-Quality Credit-Rated T enants Triple Net Lease Structure O1 Rental Rates are in Line with Market
12
Yielding Assets make up 98% of Portfolio Value
Notes: 1. O1 owns 85% of Greendale Project, 100% of Kutuzov Project and 50% of Bolshevik Project.
100% Moscow Office Current Portfolio Development Projects
Completion: 2014/16 NRA: 73 000 Completion: 2016/17 NRA: 33 000 Completion: 2018/19 NRA: 22 000
Value*, Dec 2014: $110 mln O1 share: $70 mln *GAV doesn’t include Bolshevik phase 1A, which is already yielding asset
Dec.
2014
iCUBE2
12
Lighthouse
7
Krugozor
10
Vivaldi Plaza 6 White Square 1 Ducat Place III 2 Stanislavsky 8 White Stone
4
Silver City
5 9
Legend
3
Avion
11
Greendale1
14
Kutuzov
15
Bolshevik1
13
Value, June 2014 (US$ Bn.): 4.02 NRA* (thous. sq.m.): 510 WAULT (years): 3.8 Occupancy: 93%
LeFORT Factory
Yielding Assets
11 14 9 13 1 2 4 3 5 8 6 7 12 10 15
13
The Kremlin
*NRA includes Bolshevik phase 1A GAV doesn’t include Bolshevik phase 1A
321 349 467 510
200 300 400 500 600 2011 2012 2013 2014 NRA, '000 sq.m
2,45
16%
2,55
17%
10,1
67%
Moscow Office Market breakdown, mln sq.m. and %
O1’s Investment Portfolio
Class A and Prime A Class B +
Source: Cushman&Wakefield report.
As of YE 2014 O1 has 510 thousands sq. meters of completed and yielding Class A and B Office Space. Estimated O1 share in Moscow class A and B+ office market is 10%.
14
Class B
15
Assets Classes by GAV
Assets Location by GAV Asset Classes by GA V
Class A+ Class A Class B CBD GR-TTR TTR-MKAD
Almost half of the total yielding portfolio is trophy assets (Class A+) and three quarters of assets are located in Central Business District of Moscow.
10% 8% 10% 11% 13% 8% 6% 6% 2% 7% 6% 10% 3% 11% 9% 10% 11% 13% 9% 6% 6% 2% 7% 6%
16
Krugozor Ducat Place III Silver City Vivaldi Plaza White Stone Stanislavsky
Avion
Notes:
T
$4.17Bn iCUBE
As of 31 Dec 2013
White Square Bld 1 Lighthouse LeFORT White Square Bld 2 Silver City White Square Bld 1 Krugozor Legend Avion Vivaldi Plaza Lighthouse White Stone White Square Bld 2 Ducat Place III Stanislavsky iCUBE LeFORT
Low Asset Concentration Underpins Stable Cashflow
As of 31 Dec. 2014
T
$4.02Bn
Mostly Multinational T enants or Russian
RTS/LSE Listed 17
34% 11% 9% 46%
18
Tenant type ownership Top Tenants contribution to NOI Tenant type by industry
Large multinational companies contribute more than 70% of total NOI. Therefore O1 cashflows are generally backed by “investment grade” tenants / credit quality . The tenant base is well diversified across industries. Relatively low tenant concentration. PwC, Eurasian Economic Community and Deloitte are the only tenants accounting for more than 3% of total NOI.
Multinational Russian private Rest T
T
1-20 T
4% 8% 70% 18% 16% 14% 16% 7% 15% 8% 25%
Multinational Russian private Russian publicity listed Government Consulting/ Legal services Industrial Consumer/ Retail Finance TMT Natural resourses
19
WAULT- 3,8 years
Expiration profile by NRA Expiration profile by NOI
6 809 19 016 57 859 57 738 69 893 76 866 24 749 9 061 11 436 3 337 2,02% 5,65% 17,18% 17,14% 20,75% 22,82% 7,35% 2,69% 3,40% 0,99%
20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 0,00% 5,00% 10,00% 15,00% 20,00% 25,00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, % 10 096 29 972 82 664 71 084 91 632 87 803 33 858 11 239 10 450 2 938 2,34% 6,94% 19,15% 16,46% 21,22% 20,34% 7,84% 2,60% 2,42% 0,68%
20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 100 000 0,00% 5,00% 10,00% 15,00% 20,00% 25,00%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total expirtaion profile NRA, sq.m Total expirtaion profile NRA, %
20
Vacancy in O1 assets mainly represented by recently acquired assets: Icube and Legend. Rental rates in O1 assets are within market range, not overpriced.
Occupancy and rental rates
Project Rental rates 1Q'2015 Total NRA Occupied space O1 occupancy Market occupancy Legend 914 40 296 31 167 77% Ducat Place III 933 33 497 30 324 91% White Square 1 025 76 407 76 319 100% Prime A 980 150 199 137 810 92% 90% Krugozor 562 50 954 47 511 93% Stanislavsky factory 639 34 563 34 009 98% White Stone 649 39 692 38 710 98% Lighthouse 770 27 492 26 989 98% iCube 650 19 200 12 000 63% Vivaldi Plaza 751 48 150 47 988 100% Silver City 760 41 917 37 561 90% Bolshevik Phase 1A 650 17 300 10 885 63% Class A 680 279 267 255 653 92% 75% Avion 547 18 442 13 048 71% LeFORT 412 55 901 48 287 85% Class B 441 74 344 61 335 83% 87% Total yielding portfolio 738 503 810 454 798 90%
Negative revaluation due to deteriorating market conditions in 2H 2014 is 6,7%. Development projects and assets with lower occupancy decreased more in value than fully occupied assets
Negative revaluation
21
YE2013 YE2014 Difference Change Krugozor 371 100 328 900
Stanislavsky factory 252 300 234 300
LeFORT 265 800 228 300
Avion 97 700 82 200
White Stone 293 600 272 500
Lighthouse 259 400 245 600
Vivaldi Plaza 444 500 410 900
Silver City 354 800 329 200
Ducat Place III 412 500 397 500
White Square 1 000 600 966 500
Greendale 33 500 27 100
iCube
Kutuzov 18 200 13 900
Legend 415 500 399 300
Total 4 219 500 4 059 600
Net debt 2 522 000 2 612 284 113 297 4,49% LTV 60% 64%
Having such strong shareholders as ICT Group and Goldman Sachs creates additional advantages to O1 in comparison with other Commercial Real Estate companies.
Notes: 1. Equity estimate as of FY2014 before deducting deferred tax liabilities
T
1.5% 98.5%
Boris Mints
68.33 %
Class A Class B Capital A Capital B Total Share Boris Mints 100% 56,37% 370 552 922 68,3% ICT Group 25,88% 254 254 18,8% Goldman Sachs 16,40% 161 161 11,9% Top management 1,35% 13 13 1,0% Total 100% 100% 370 980 1350 100%
23
Boris Mints T
1.0%
Boris Mints
68.3%
ICT Group
18.8%
Goldman Sachs
11.9%
Independent Non-Executive Directors Corporate Governance
The composition of the Board of Directors: 4 out of 9 Board members are independent non-executive directors, and all are active industry participants with significant experience in real estate and real estate finance. All three committees (audit, nomination and remuneration, strategy and development) are headed by independent directors.
Strong Alignment of Shareholder Interests
Founding shareholder (Boris Mints) remains committed to the ongoing business strategy.
Executive Directors ICT representative
Alexander Ostrovskiy
Chief Executive Officer
Tomasz Zamiara
Chief Financial Officer
Konstantin Yanakov
Vice-President
in April 2014
Dmitriy Mints
Chairman
Board
Michael Stanton
Chief Investment Officer
Timothy Fenwick
Former Head of Jones Lang LaSalle, Russia Joined in July 2011 Chairman
Committee
Richard Gregson
Former Real Estate Leader of PWC, Russia Appointed to the Board in June 2012 Chairman of Audit Committee
John Nacos
Former Global Head of Real Estate, Deutsche Bank Joined in August 2011 Chairman of O1 Strategy and Development
Committees
Norbert Kickum
Former Head of Real Estate Lending at Aareal Bank. In 2011 was appointed by the German Government to FMS Wertmanagement AöR. Joined in Jan 2015
24
Strong Board: Two New Directors added
26
Equity includes net deferred tax liabilities estimated in the amount of $160 mln.
1 459 1 604 2 012 2 105 2 508 2 984 3 665 4 060 4 167 4 021 37 71 60 72 73 69 79 68 135 132 197 173 224 97 83 127 129 417 373 287 661 749 775 850 901 1 078 1 295 1 545 1 540 1 344 195 201 291 142 137 200 191 203 335 273 836 897 1 230 1 282 1 626 1 902 2 388 2 798 2 800 2 822
54% 53% 58% 60% 63% 62% 63% 60% 61% 64%
0% 10% 20% 30% 40% 50% 60% 70% 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 31.12.2010 30.06.2011 31.12.2011 30.06.2012 30.09.2012 31.12.2012 30.06.2013 31.12.2013 30.06.2014 31.12.2014 Investment Properties Other Non-current Assets Current Assets (incl cash) Equity Other liabilities Debt LTV
27
Income statement, kUSD (thousands) Restated 2012 Restated 2013 2014 Net rental income 144 305 292 210 351 282 G&A expenses (28 268) (32 348) (32 433) EBITDA 116 037 259 862 318 849 Adjusted finance costs (129 186) (165 856) (213 396) Finance income 2 425 17 852 6 115 Operating profit (10 724) 111 858 111 568 Adjusted revaluation gain (net of forex exchange & translation gains) 88 269 147 892 (103 380) Net gain from disposal of subsidiaries
84 930 Share of result of associates and JV 2 935 8 081 22 703 Net other income and costs (3 000) (6 029) 1 066 Profit before Income Tax 77 480 264 309 5 319 Income tax expenses (incl. net deferred taxes accrued) (12 402) (66 578) (315 783) Profit for the Period 65 078 197 731 (310 464) Exchange differences on translation to presentation currency 56 302 (90 216)
586 (1 022) (27 840) Other comprehensive income
9 752 Total Comprehensive Income for the Period 121 966 110 112 (328 552) Class A shares dividends (3 950) (31 838) (44 388) Class B shares dividends
(40 127) Minority dividends (23 503)
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Balance Sheet at Year End, USD (thousands) Restated 2012 Restated 2013 2014 Derivative financial instruments — 14 043 5 139 Inventories 336 1 245
504 1 564
6 340 33 798 10 745 VAT receivable 17 131 1 314 2 530 Trade and other receivables 37 653 61 810 74 792 Current income tax prepayments 399 11 716 6 678 Cash and cash equivalents 54 769 300 881 186 958 Non-current assets classified as held for sale 343 285 16 025 Total current assets 460 417 442 396 286 842 Property, plant and equipment 23 336 24 630 22 866 Investment property 2 639 912 4 172 500 4 020 665 Investment in associate and joint venture 10 199 11 484 7 099 Loans issued 23 032 16 615 44 243 Prepayments and deferred expenses 7 157 4 093 3 773 VAT receivable 6 984 9 469 257 Deferred income tax assets 53 845 Total non- current assets 2 710 620 4 238 791 4 152 748 Total assets 3 171 037 4 681 187 4 439 590
29
Balance Sheet at Year End, USD (thousands) Restated 2012 Restated 2013 2014 Borrowings 1 403 507 2 664 705 2 597 615 Tenant deposits 34 315 53 375 56 958 Deferred income tax liability 41 929 94 885 214 331 Total Non-Current liabilities 1 479 751 2 812 965 2 868 904 Borrowings 281 096 133 107 224 640 Derivative financial instruments 16 033 8 931 6 680 Tenant deposits 11 234 6 195 6 952 Deferred rental income 71 413 87 781 88 395 Current income tax liability 2 964 1 916 696 Trade and other payables and other liabilities 67 935 41 901 59 486 Liabilities classified as held for sale 229 117
679 792 279 831 386 849 Total liabilities 2 159 543 3 092 796 3 255 753 Class A stock 167 900 369 900 369 900 Class B stock 471 914 702 245 706 727 Non-controlling interest 86 86 125 52 126 Property revaluation reserve
13 371 Retained earnings 394 053 540 090 552 835 Translation reserve (22 459) (113 589) (511 122) Total equity 1 011 494 1 588 390 1 183 837 Total equity + net deferred tax 1 053 423 1 683 275 1 344 323 Total liabilities and equity 3 171 037 4 681 186 4 439 590
2H 2014 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 2H 2019 1H 2020 2H 2020 2022 USD Millions
900 700 600 500 400 300 200 100 — 800 Sberbank WS Mezz + Binbank Bond Repayment
White Stone and Avion loan Repayment - $140M + $50M in 2022
100 30 413 32 218 32 892 29 439 13 190 150 26 23 25 29 27 29 29 7
Total principal repayment Total debt amortisation
Repayment Profile
In 2013-14 we significantly improved maturity profile and debt amortisation schedule, and decreased interest rates. Weighted average interest rate on the debt is about 7% including cost of hedging. 5% of total debt (150 mln from 2.8 bln) denominated in rubles; 20% of debt unhedged (Libor floating rate). We are preparing another ruble bond issue in 2H2015 to refinance Sberbank Mezz.
30
186
Cash as of 31 Dec 2014
31
Binbank
Sberbank
Aareal bank
Alfa bank
VTB Group
Unicredit
Bonds
Gazprombank
32
1Q2014 2Q2014 3Q2014 4Q2014 FY2014 Average exchange rate of payments 34 36 35 41 38 Payments in rubles, mln 3 055 3 320 3 245 3 870 13 490 USD NOI actual, mln 90 91 94 95 370 USD IFRS NOI 2014 at 38,42 USD/Rub, mln 80 86 84 101 351
90 91 94 95 370 80 86 84 101 351
100 150 200 250 300 350 400 1Q2014 2Q2014 3Q2014 4Q2014 FY2014 USD NOI actual, mln USD IFRS NOI 2014 at 38,42 USD/Rub, mln
Actual NOI and IFRS NOI for 2014 year is different by $19 mln due to USD/Rub exchange rate fluctuation
326 363 1040 220 157 207 8,20% 6,26% 5,78% 6,88% 5,06% 6,09% 0,00% 1,00% 2,00% 3,00% 4,00% 5,00% 6,00% 7,00% 8,00% 9,00% 200 400 600 800 1000 1200
Notes: All data based on most recent open source information.
33
(A)Predominantly Income Producing real estate with high quality assets (B)Located in major international city / cities (C)Strong market share in its primary markets (D)Some (but small) development exposure
O1 Properties BR Properties SL Green Realty Corp. Atrium European Real Estate Great Portland Estate Commonwealth Property Office Fund Rating (S&P/Moody’s/Fitch) B+/NR/NR BB/Ba2/BB- BB+/Ba2/BB+ BBB-/NR/BBB- NR/NR/NR A-/A3/NR Country/City Moscow Brazil New York City Central East Europe London Sydney/Melbourne Gross Assets Value, Bln 4,02 5,76 18 (est. fair market value) 3,2 3,1 3,4 Adjusted Ebitda (US$ M) 326 363 1040 220 157 207 EBITDA Yield, % 8,2 3,9 18 (est. fair market value) 4,4 2,9 6,6
Criteria:
EBITDA and EBITDA Yield
4,02 5,8 18 3,2 3,1 3,4 2 4 6 8 10 12 14 16 18 20
Gross Asset Value, $bln
35
Manage tenant relations in order to keep vacancy at low levels Reduce vacancy in Legend and iCUBE Tight control on G&A expenses Tight control on development costs
Class A+ office centre. Modern, high-class building completed in 2009. Winner of the Commercial Real Estate Moscow Awards 2010 for best Class A Business Center . Northern Administrative District between the Garden Ring and Third Transport Ring. Belongs to Belorusskaya area which is one of the most prestigious business districts in Moscow (prime
Right next to the Belorusskaya Metro Station (1 minute walk) and Belorusskaya Railway Station (express trains to Sheremetyevo airport).
Lease Expiration Profile
38
Description Location
774 2 485 5 070 5 418 5 613 46 840 1 407 2 597 10 605 354
1% 3% 6% 7% 7% 58% 2% 3% 13% 0%
10 000 15 000 20 000 25 000 30 000 35 000 40 000 45 000 50 000 0% 10% 20% 30% 40% 50% 60% 70%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Valuation FY2014 $ MM 966,5 GBA sq.m. 76.407 NRA sq.m. Parking # 4.5 WAULT year 99% Occupancy % ERV $ / sq.m. 975 Indexation % / year Land plot sq.m. 3.500 Land lease agreement year 2050 96.704 802 2,0% The Kremlin
Class A office complex. Consists of 3 buildings, 1 1 stories each. New development completed in late 201 1. Central Administrative district (some of the most prestigious offices are located within district). Close to Paveletskaya metro station (2 minutes walk). One of the most well developed business districts in Moscow.
EuRaSec
39
66
20 526 3 778 544
0% 0% 8% 0% 26% 54% 10% 1% 0% 0%
10 000 15 000 20 000 25 000 0% 10% 20% 30% 40% 50% 60%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Lease Expiration Profile
Description Location
Valuation FY2014 $ MM GBA sq.m. 48.150 NRA sq.m. Parking # 4,6 WAULT year Occupancy % ERV $ / sq.m. 700 Indexation % / year Land plot sq.m. Land lease agreement year 71.809 754 16.322 411 100% 4,3% 2060 The Kremlin
Business Center «Legend» Class A+ is part
T svetnoy» Located on “Boulevard Ring” in the Trubnaya Square in the heart of downtown Moscow at: Tsvetnoy Boulevard, Building 2, ow. 1. The Kremlin is 2 kilometers away. Metro stations “Trubnaya” or “Tsvetnoy Boulevard” is only 1 - 3 minutes by foot.
40
369 152 1 743 11 441 12 474 1 856 1 542 745 191 18
1% 0% 6% 37% 41% 6% 5% 2% 1% 0%
4 000 6 000 8 000 10 000 12 000 14 000 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Lease Expiration Profile
Description Location
Valuation FY2014 $ MM GBA sq.m. 40.296 NRA sq.m. Parking # 5,1 WAULT year Occupancy % ERV $ / sq.m. 900 Indexation % / year Land plot sq.m. Land lease agreement year N/A 401 399 77% 3,5% N/A N/A The Kremlin
Class A prime office centre. Modern, high-class building completed in 2008. Central Administrative District, in the most prestigious business area in Moscow. Between Mayakovskaya and Belorusskaya metro stations.
Lease Expiration Profile
41
407 3 066 3 367 2 987 6 551 1 634 8 987
1% 10% 11% 10% 22% 5% 30% 0% 0% 10%
2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 10 000 0% 5% 10% 15% 20% 25% 30% 35%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Description Location
Valuation FY2014 $ MM 397,5 GBA sq.m. 33.497 NRA sq.m. Parking # 3.95 WAULT year Occupancy % ERV $ / sq.m. 1.000 Indexation % / year Land plot sq.m. Land lease agreement year 46.085 494 3,0% N/A 90% N/A The Kremlin
56
2 797 11 012 293
0% 0% 12% 13% 50% 1% 0% 23% 0% 0%
4 000 6 000 8 000 10 000 12 000 0% 10% 20% 30% 40% 50% 60%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Class A office centre. 14 floors building. New development completed in early 2012. Garden Ring. Central Administrative district (some of the most prestigious offices are located within district). Near Dobrininskaya and Paveletskaya metro stations (3 and 5 minutes walk, respectively).
46
Lease Expiration Profile
Description Location
Valuation FY2014 $ MM GBA sq.m. 27.405 NRA sq.m. Parking # 4,7 WAULT year Occupancy % ERV $ / sq.m. 700 Indexation % / year Land plot sq.m. Land lease agreement year 44.581 332 6.200 245,6 100% 3,0% N/A The Kremlin
Central Administrative District within the Garden Ring. Between T aganskaya and Paveletskaya metro stations.
43
Lease Expiration Profile
Description Location
Valuation FY2014 $ MM GBA sq.m. 41.766 NRA sq.m. Parking # 2,8 WAULT year Occupancy % ERV $ / sq.m. 700 Indexation % / year Land plot sq.m. Land lease agreement year 56.033 446 3.500 329 90% 2,5% 2050
Class A office centre. Modern, high-class building completed in 2007.
The Kremlin
778 3 256 5 962 12 006 5 066 2 051
11% 20% 41% 17% 7% 0% 0% 1% 0%
4 000 6 000 8 000 10 000 12 000 14 000 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
165 694 7 637 7 729 4 468 3 148 2 787
3% 29% 29% 17% 12% 10% 0% 0% 0%
2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 0% 5% 10% 15% 20% 25% 30% 35%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Class A office centre. Modern, high-class building completed in 2005. Northern Administrative District between the Garden Ring and Third Transport Ring. Belongs to Belorusskaya area which is one of the most prestigious business districts in Moscow (prime
Right next to the Belorusskaya metro station (1 minute walk) and Belorusskaya Railway Station (express trains to Sheremetyevo airport).
44
Lease Expiration Profile
Description Location
3,4% 294 91% Valuation FY2014 $ MM GBA sq.m. 39.710 NRA sq.m. Parking # 3.5 WAULT year Occupancy % ERV $ / sq.m. 600 Indexation % / year Land plot sq.m. Land lease agreement year 49.520 318 3.500 2050 272,5 98% 3,0% The Kremlin
Valuation FY2014 $ MM 329 GBA sq.m. 62.072 NRA sq.m. 50.951 Parking # 703 WAULT year 3,4 Occupancy % 93% ERV $ / sq.m. 600 Indexation % / year 3,0% Land plot sq.m. 27.078 Land lease agreement year 2045
Class A office centre. Consists of 2 buildings of different heights connected together. Reconstructed buildings of former toy factory.
Lease Expiration Profile
42
South West administrative district. Krugozor is near Kaluzhskaya metro station (5 minute walk).
Description Location
1 404 1 641 9 548 7 506 4 984 113 3 280
6% 34% 26% 18% 0% 12% 0% 0% 0%
4 000 6 000 8 000 10 000 12 000 0% 5% 10% 15% 20% 25% 30% 35% 40%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
The Kremlin
Class B office centre. Consists of 10 rentable buildings of different heights. Reconstructed buildings of former silk factory (early 20th Century buildings). East Administrative District. Well developed industrial area with more than 300 of the largest industrial companies located there. Close to Preobrazhenskaya Ploshchad metro station (7 minutes walk).
45
Valuation FY2014 $ MM 228 59.781 GBA sq.m. 56.169 NRA sq.m. 714 Parking # 2.6 WAULT year 100% Occupancy % ERV $ / sq.m. 425 Indexation % / year Land plot sq.m. 43.424 Land lease agreement year 2052
Description Location
3,0%
Lease Expiration Profile
The Kremlin
2 306 5 549 7 626 271 4 763
27% 37% 1% 23% 0% 0% 0% 1% 0%
2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 0% 5% 10% 15% 20% 25% 30% 35% 40% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Class A- office centre. Consists of 6 buildings. Reconstructed buildings of former factory. Central Administrative district (some of the most prestigious
district). Near T aganskaya and Marksistskaya metro station (7 and 9 minutes walk, respectively).
TimService
47
Description Location
Valuation FY2014 $ MM 234 GBA sq.m. 34.345 NRA sq.m. 335 Parking # 3.2 WAULT year 98% Occupancy % ERV $ / sq.m. 600 Indexation % / year Land plot sq.m. 19.632 Land lease agreement year 2051
157 1 851 9 600 3 976 3 633 406 2 968
8% 42% 18% 16% 2% 13% 0% 0% 0%
4 000 6 000 8 000 10 000 12 000 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
43.251 3.0%
Lease Expiration Profile
The Kremlin
329 323 1 397 3 607 1 363
5% 20% 51% 19% 0% 0% 0% 0% 0%
1 000 1 500 2 000 2 500 3 000 3 500 4 000 0% 10% 20% 30% 40% 50% 60%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total expirtaion profile - NOI, kUSD Total expirtaion profile - NOI, %
Class B+ office centre. Consists of 2 buildings connected together. Reconstructed in 2005. North Administrative District. Close to Aeroport metro station. The property resides along Leningradsky Prospekt, a principal route from the Moscow city centre to the Sheremetyevo airport. Right next to Aeroport Metro Station.
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Lease Expiration Profile
Description Location
Valuation FY2014 $ MM GBA sq.m. 18.429 NRA sq.m. Parking # 3,0 WAULT year Occupancy % ERV $ / sq.m. 500 Indexation % / year Land plot sq.m. Land lease agreement year 19.147 63 9.428 82 70% 4,0% 2054 The Kremlin
19th Century Industrial Buildings. Currently used as chocolate factory (Kraft). Conversion into class A-/B+ office space in case of acquisition. Northern Administrative District between the Garden Ring and Third Transport Ring. Belongs to Belorusskiy area which is one of the most prestigious business districts in Moscow (prime office sub-market). Borders Liningradskiy prospect (route to Sheremetievo airport). Close to Belorusskaya Metro Station (10 minute walk). Phase 1A consists of 4 buildings that are currently 90% finished for shell & core
thousand sq. m.) with Publicis Group (multinational media holding headquartered in Paris).
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GBA sq.m. 73.000 NRA sq.m. Parking # 2017/16 Completion year Development cost $ MM ERV $ / sq.m. 600 Land plot sq.m. Land lease agreement year 86.000 860 58.504 170-180 2050 O1 share % 50%
Location Project Description Description
The Kremlin
26, Valovaya Str., Moscow, Russia, tel: +7 495 788 5575, info@o1properties.com
www.o1properties.com