CREATING GREAT PLACES H1 2020 F INANCIA L RESU L TS PRESENTATION
ATRIU M IN A SNAPS H OT AND BUSINESS O V ER V IEW CE portfolio focused on quality urban assets in Warsaw and Prague €0.5bn €1.6bn €2.5bn Strong liquidity and financial flexibility, Investment Grade Rating Poland Czech standing €1.0bn €0.4bn Strategy in place to diversify portfolio into residential for rent investment portfolio 5 assets Warsaw 2 assets Prague 6.5% 36.1% net equivalent yield net LTV (31/12/2019: 6.4%) 5.0 yr 2.9% average maturity cost of debt 95.4% EPRA occupancy 4.65 5.3 yr EPRA / NAV per share (€) WALT 2 The portfolio fjgures exclude 5 assets classifjed as held for sale.
PRE COVID-19 THE COMPANY CONTINUED TO PERFORM WELL Strong LFL NRI of +3% in Poland and Czech 1 Tenant sales +8% January / February Footfall stable in January / February YoY Q1 collection rate 97% Portfolio Strategy execution continued with the sale of Atrium Duben in Slovakia for €37m 1 Q1 2020 excl impact of C O V ID -19 3
LOCKDOWN PERIOD (MID MARCH TO MAY / JUNE) Shopping centres are closed Company action plan Implementation of health and safety measures Dialogue with tenants on a joint solution Capital expenditures reduction Operational and administrative cost reduction Postponement of Redevelopment investments Extending liquidity: Bond refjnancing A voluntary scrip dividend programme 4
WHERE WE STAND TODAY Operational performance 87% GLA reopen (92% excl. Russia) Tenant discussions extend into Q3 2020 Footfall and sales gradually recovering to pre- COVID-19 levels Focus on collections, H1 2020 76% Liquidity and financial strength €95m cash, €200m unutilised credit facility as of today Next bond repayment of €242m in October 2022 Net LTV 36.1%, 5 YR maturity Completed the sale of 5 assets in Poland for €32m A voluntary scrip dividend programme for Q2-Q4 dividends 5
92% OF GLA IN POLAND, CZECH AND SLOVAKIA IS OPEN Closing date During Lockdown Opening date As at 3/8/2020 of non-essential services 17% 83% 91% 9% 14/3/2020 4/5/2020 Poland 15% 85% 95% 5% 15/3/2020 11/5/2020 Czech Republic 87% 13% 100% 0% 16/3/2020 20/5/2020 Slovakia 16% 84% 92% 8% Group (excl. Russia) As from 30% 70% 76% 24% 1/6/2020 1 28/3/2020 Russia 21% 79% 87% 13% Group 1 Shopping centres have begun to open in June. 6 Open Closed As of today 6 of our 7 shopping centres in Russia are open.
MOMENTUM CONTINUES TOWARDS PRE-COVID-19 LEVELS Footfall and sales as a % of last year levels 1 Consumers gain confidence in the public health measures that have been taken June sales at 77% 1 vs last year 77% 73% 66% 57% Footfall at 73% 1 in the first week of July 37% vs the same week in 2019 9% Sales are down less than footfall: Higher conversion and average basket w / c: w / c: w / c: April May June 27 / 4 / 2020 25 /5/ 2020 29 /6/ 2020 Positive footfall and sales Sales F ootfall trend in July 7 1 Excl. Russia which opened later.
FOOTFALL GRADUALLY RETURNING TO PRE-COVID-19 LEVELS Footfall excl. Russia 73% YoY in first week of July Footfall per country: Poland Czech Slovakia Russia Group Group (excl. Russia) 140% 120% 100% 82% 80% 73% 71% 70% 60% 70% 67% 40% 20% 0% January February March April May June Excl. assets held in Joint Ventures. 8
URBAN CENTRES ARE STILL LAGGING Footfall of urban/metro shopping centres, Russia (opened later) and all other shopping centres: Urban / Metro All other shopping centres (excl. Russia) Russia (opened later) Group 120% 100% 80% 77% 70% 67% 66% 60% 40% 20% 0% January February March April May June 9 Excl. assets held in Joint Ventures
SALES PICKING UP TO PRE-COVID-19 LEVELS Sales per country Urban centres are recovering more slowly June 2020 June 2020 Poland All other shopping centres 1 -26% -19% Czech Republic Urban / Metro -15% -37% Slovakia Russia 2 -1% -56% Group (excl. Russia) Group -23% -30% Russia -56% Group -30% 1 Excl. Russia. 10 2 Russia has opened later and one centre is still closed.
H1 2020 RESULTS OVERVIEW 11
COMPANY OPERATIONAL INDICATORS H1 2020 Change H 1 2020 H 1 2019 (in €m) (in €m) (%/ppt) Net rental income ("NRI") 71.4 92.4 (22.8) 93.1 92.4 NRI excl. impact of COVID-19 and disposals 0.7 (14.2) 52.2 60.9 EPRA Like-for-Like NRI EBITDA 61.6 81.5 (24.4) 82.8 81.5 1.5 EBITDA excl. impact of COVID-19 and disposals Company adjusted EPRA earnings per share (€ cents) 9.8 15.4 (36.4) Occupancy rate (%) 95.4 97.0 1 (1.6) (5.8) Operating margin (%) 90.0 95.8 12 1 As at 31/12/2019.
NRI -€21m vs H1 2019: €12m COVID-19, €10m DISPOSALS, OFFSET BY €0.7m LFL GROWTH NRI decreased 22.8% due to COVID-19 and disposals (in million €) 0.7 92.4 71.4 (8.3) (3.7) (9.7) LFL H1 2019 Rent/SCI Other growth Net H1 2020 relief COVID-19 and disposals related 2 Poland 1,2 others 1 Polish Government imposed rental/service charge relief for the lockdown period. 2 Rent concessions from 1/4/2020 were straight-lined over the remaining lease term. 13 • Covid-19 and redevelopments
EPRA OCCUPANCY REMAINS HIGH AT 95.4% 95.4% Occupancy Operating margin 5.3 YR WALT (30/6/2020) (30/6/2020) 97.0% 95.8% 95.4% 90.0% 5.3 5.3 • High occupancy • -4.3% due to COVID-19 • Tenant support in exchange for lease prolongations are due to proactive (Poland Government expected to further extend asset management the Group average lease service charge relief) and tenant support duration • -1.5% redevelopments and others 31/12/2019 30/6/2020 31/12/2019 30/6/2020 H1 2019 H1 2020 14
EARNINGS: IMPACT OF COVID-19 AND DISPOSALS Underlying EBITDA and EBITDA margin are stable 82 83 (in million €) 62 88% EBITDA as % of NRI 89% • €1m reduction in admin cost 86% already achieved in H1 2020 H1 2019 H1 2020 H1 2020 adj. for COVID-19 impact and net disposals Underlying Adj. EPRA 58 58 Earnings unchanged 37 (in million €) 15.4 15.4 9.8 Company adjusted EPRA earning p.s. (€ Cents) H1 2019 H1 2020 H1 2020 adj. for COVID-19 impact and net disposals 15
RESILIENT WARSAW AND PRAGUE CENTRIC ASSET BASE Market value Revaluation NEY 1 €88m devaluation - yield expansion 1 30/6/2020 30/6/2020 €m H1 2020 and short term tenant support €m % 981 (26.7) (2.7%) 5.3% Warsaw Warsaw Prague quality assets - more resilient 663 (26.9) (3.9%) 6.7% Other Poland Prague and Warsaw valuation change -2.7%, total portfolio excl. 1,644 (53.6) (3.2%) 5.9% POLAND Russia -2.9% 408 (11.8) (2.8%) 5.3% Prague 102 (2.4) (2.3%) 6.0% Other Czech Portfolio overview 510 (14.2) (2.7%) 5.4% CZECH RUSSIA 121 - - 6.7% Slovakia 10% POLAND 2,275 (67.8) (2.9%) 5.8% SUBTOTAL 65% WARSAW 39% SLOVAKIA 268 (20.1) (7.0%) 12.7% Russia OTHER POLAND 5% € 2.5bn 26% 2,543 (87.9) (3.3%) 6.5% TOTAL CZECH 6.5% yield REPUBLIC 20% -2.0% +12 bps on average Property PRAGUE 16% NEY market effect in Warsaw and Prague valuation is down 6.5%, OTHER CZECH 4% 3.3% -1.3% one time +21 bps in up 10 bps cash flow effect other cities 16 The portfolio figures exclude 5 assets classified as held for sale sold in July
A STRONG FINANCIAL POSITION TO MANAGE LIQUIDITY NEEDS Bond and loan maturities 2 Net LTV 36.1% 1 €297m 5.0 liquidity years (in million €) 30/6/2020 average maturity 40% remains our long term target • Successful €200m bond tap and 486 37.9% €218m bond buyback in June 2020 35.1% 242 36.1% • Next bond repayment of €242m is not 30.1% 163 due until October 2022 114 31/12/2017 31/12/2018 31/12/2019 30/6/2020 2022 2025 2026 2027 1 €247m cash, €50m unutilised credit facility as at 30/6/2020 2 Excluding utilised revolver credit facility Borrowings Financial Performance Indicators 72%/€1.8bn (as at 30/6/2020) unencumbered Bonds €728m standing investments Cost of Debt 3 EPRA NAV per share Loans €299m RCF 4 €250m € 1.3bn €4.65 2.9% Moody’s: Baa3 (negative) Total Debt Fitch: BBB (stable) 31/12/2019 €4.96 3 Excluding utilised revolver credit facility 4 €150m repaid in July 2020 17
COLLECTED 76% OF NON-DEFERRED H1 2020 INVOICED AMOUNT : 97% FOR Q1 AND 53% FOR Q2 €92m of H1 2020 invoices €41m of Q2 2020 invoices (net of €10m Polish government relief 1 ) (net of €14m Polish government relief 1 1 ) (in million €) (in million €) 9 53% 76% 1 collection rate on collection rate on 70 non-deferred income non-deferred income 9 1 21 Unpaid Unpaid Collected Collected deferred deferred 10 12 Tenant support Tenant support On a cash basis, excl. VAT and 75% stake in an asset held in JV 1 The imposed rent and service charge income reliefs in Poland during the closed period were not invoiced (see next slide) 18
Q2 COLLECTION IMPROVES ALONG WITH PROGRESS IN DISCUSSIONS WITH TENANTS €14m €9m €10m Polish Government imposed short term tenant support unpaid rent rental/service charge relief for the Discounts / Rent Holidays etc. lockdown period based on the 60% (€6m) tied to tenant relief packages In return for lease prolongations, lease modifications, assumption that all tenants will apply e.g. click and collect sales under negotiation, collection H2 2020 (€4.7m in Q1, €9.6m in Q2) Tenant support limited to 2020 20% (€2m) expected to be collected 20% (€2m) expected credit loss Credit loss approx. 50% covered by deposits and guarantees 19
CE MACRO FUNDAMENTALS AND SUMMARY 20
Recommend
More recommend
