Interim Results Presentation June 2013 1 Introduction A Romanian - - PowerPoint PPT Presentation

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Interim Results Presentation June 2013 1 Introduction A Romanian - - PowerPoint PPT Presentation

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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

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Interim Results Presentation

June 2013

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  • 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

Introduction

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  • 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

General strategy

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  • 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

Highlights

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Financial performance

30 Jun 13 31 Dec 12 30 Jun 12 31 Dec 11 30 Jun 11 31 Dec 10 Distribution per share (€ cents) 12.93 12.05 11.24 10.48 9.77 9.26 Adjusted NAV per share 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)

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  • 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

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

Romania – Macro economic

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Source: EIU – Country Forecast July 2013

  • Eurozone country expected to avoid recession
  • Politically stable
  • Moody’s Country rating ► A2

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

Slovakia – Macro economic

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Expiry profile – gross rentals

€ million 10 20 15 5 25 30 35 40

Weighted average duration of 5.8 years

Contracted rent profile per sector

80% 5% 15% Type A Type B Type C 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Retail Office Industrial

Tenant profile – gross rentals

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  • Vacancies & arrears
  • Renewals
  • Retail
  • Office
  • Industrial

Operational performance

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Bank loans reimbursement schedule

€ million

Debt repayment profile

10 20 30 40 50 60 70 80 2013 2014 2015 2016 2017 and beyond Alpha Bank BRD BCR Investkredit Eurohypo Nord LB KBC Bank Unicredit/Banca Romaneasca Raiffeisen

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Interest rate hedge position

0% 1% 2% 3% 4% 5% 6% 5 year SWAP 3month Euribor CAP SWAP 2006 2008 Jun Dec Jun Dec 2009 Jun Dec Jun 2010 Dec Jun 2007 Dec Jun 2011 Dec Jun 2012 Dec Jun 2013 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2014 2015 2016 2017 2018 Yield Curve SWAP rate Cap rate

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Acquisition and Development Pipeline

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.

52 61 149 237 22 458 100 200 300 400 500 600 Developments and Extensions Acquisitions Further Opportunities Money Spent Committed Controlled Secured Exclusivity

€ million

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  • 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)

Acquisition and Development Pipeline

* Note: Not completed as at 30 June 2013

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Developments under construction

  • Galati Shopping City (Galati)
  • Kaufland Value Extensions:

‒ Petrosani ‒ Sfantu Gheorghe ‒ Sighisoara

  • The Office (Cluj-Napoca)

Acquisition and Development Pipeline

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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 Urbanisation Certificate for PUZ PUZ Urban Zoning Plan CU AC Urbanisation Certificate for AC AC Building Permit

Acquisition and Development Pipeline

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Romania

Targu Jiu Bucharest Alexandria Braila Galati Drobeta-Turnu Severin Deva Cluj-Napoca

Slovakia

Zilina

Acquisition and Development Pipeline

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Mega Mall (Bucharest, Romania)

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Mega Mall (Bucharest, Romania)

Mega Mall

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Mega Mall (Bucharest, Romania)

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Mega Mall (Bucharest, Romania)

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Mega Mall (Bucharest, Romania)

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Aupark (Zilina, Slovakia)

Slovakia

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Catchment Population 10 minutes 90 000 20 minutes 180 000 30 minutes 380 000

  • 85 000 residents
  • Seat of a region of 700,000 residents

Aupark (Zilina, Slovakia)

Major Tenants

  • Billa
  • C&A
  • Deichmann
  • H&M
  • New Yorker

Retail space Office space 22,000 m² 1,700 m² 99% let In process

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Aupark (Zilina, Slovakia)

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1st floor (Ground floor) 2nd floor 3rd floor

Aupark (Zilina, Slovakia)

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Aupark (Zilina, Slovakia)

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Aupark (Zilina, Slovakia)

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Deva Shopping Centre (Deva, Romania)

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Deva Shopping Centre (Deva, Romania)

Hunedoara County 396,000 inhabitants

Catchment Population 15 minutes 75 000 30 minutes 177 000 45 minutes 277 000 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
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Deva Shopping Centre (Deva, Romania)

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Possible Extension Land Plot 29,390m²

Deva Shopping Centre (Deva, Romania)

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Deva Shopping Centre (Deva, Romania)

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Deva Shopping Centre (Deva, Romania)

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Galati Shopping City (Galati, Romania)

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Galati Shopping City (Galati, Romania)

  • Braila – Galati Region is known

as “Lower Danube Metropolitan Area”

  • 400,000 residents in the two

cities

Braila & Galati Counties

812,300 inhabitants

Galati Braila Promenada Mall Galati Shopping City

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Galati Shopping City (Galati, Romania)

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Galati Shopping City (Galati, Romania)

Phase 1

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Galati Shopping City (Galati, Romania)

Phase 2

cinema

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Galati Shopping City (Galati, Romania)

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Galati Shopping City (Galati, Romania)

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Kaufland Value Extension (Alexandria, Romania)

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Kaufland Value Extension (Alexandria, Romania)

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Severin Shopping Center (Drobeta-Turnu Severin, Romania)

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Mehedinti County 255,000 inhabitants

Severin Shopping Center (Drobeta-Turnu Severin, Romania)

  • 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 Major Tenants

  • Carrefour
  • Altex
  • Deichmann
  • Takko
  • Lee Cooper
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Severin Shopping Center (Drobeta-Turnu Severin, Romania)

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Current Future

Severin Shopping Center (Drobeta-Turnu Severin, Romania)

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Severin Shopping Center (Drobeta-Turnu Severin, Romania)

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

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Gorj County

335,000 inhabitants

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

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

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

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Basement Upper

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

Ground

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

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The Office (Cluj, Romania)

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Railway Station Intl Airport

The Office

Old City Centre Business Centre

The Office (Cluj, Romania)

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The Office (Cluj, Romania)

GROUND FLOOR 1st & 2nd FLOOR 3rd,4th,5th FLOOR PENTHOUSE

53,287m² of office area in 3 phases

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The Office (Cluj, Romania)

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The Office (Cluj, Romania)

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Prospects

  • Earnings guidance
  • Further opportunities being pursued

‒ Two mall developments ‒ One mall acquisition

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Questions & Answers