Kempen European Property Seminar 30 May 2012 in Amsterdam Profile - - PowerPoint PPT Presentation

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Kempen European Property Seminar 30 May 2012 in Amsterdam Profile - - PowerPoint PPT Presentation

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Kempen European Property Seminar 30 May 2012 in Amsterdam Profile Top 3 listed Dutch mixed real estate fund Dutch REIT / Listed on Amsterdam Euronext (Midkap AMx) 2.29bn Portfolio: 203m TRI: Outstanding shares:

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SLIDE 1

Kempen European Property Seminar 30 May 2012 in Amsterdam

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SLIDE 2

Profile

Top 3 listed Dutch mixed real estate fund

 Dutch REIT / Listed on Amsterdam Euronext (Midkap AMx)  Portfolio: €2.29bn  TRI: €203m  Outstanding shares: 63,381,376

Mixed fund

 2 home markets (NL, B)  Exit strategy for Switzerland  High yield fund (8,9% GIY)  Focus on retail and offices (50/50 on average)  NL: retail and offices  B: offices and warehouses  Focus on small and medium sized companies

Financial highlights

 Quarterly dividend, 30-50% Stock  LTV target 50%, Fixed interest > 80%  80% free float, main shareholder 20%

Dutch Office portfolio: 39%

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SLIDE 3

Financial ratios

Consolidated

x €1,000 Q1 2012 Q4 2011 Q1 2011 Investments 2,294,260 2,321,813 1,357,829 Shareholders’ equity 895,404 909,620 600,105 Shareholders’ equity NSI 763,647 781,218 600,105 Debts to credit institutions (excluding derivatives) 1,315,693 1,329,166 737,412 Q1 2012 Q4 2011 Q1 2011 Loan to value (%) 57.3 57.2 54.4 Average interest rate (%) 4.3 4.2 4.3 Average maturity loans (years) 2.3 2.1 2.1 Fixed interest loans (%) 91.6 91.3 91.3 Interest coverage ratio 2.5 2.4 2.7 NAV 12.86 12.96 13.86 EPRA NAV 13.83 14.02 14.27

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SLIDE 4

Steady Result & Loan To Value

1.36 1.36 1.36 1.34 1.40 1.34 1.26 1.19 0.26

45,327 46,635 48,510 47,810 50,037 51,627 52,398 56,030 16,181

2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012 Dividend Direct result

Direct result and Dividend

52,2 50 49,7 46,9 57,2 54,9 54,8 57,2 57,3 40 45 50 55 60 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012

LTV

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SLIDE 5

Business Highlights

 Merger with VastNed Offices/Industrials

  • €1.0 bn portfolio
  • €68m (35%) book profit on

acquisition

  • Strong focus on Randstad
  • Integration completed

 Record of renewals and new leases in 2011  10,000 m² letting for the Red Elephant The Hague  Introduction in the Euronext Amsterdam Midcap Index (AMx)

20 40 60 80 100 120 Amsterdam region Rotterdam region Utrecht region The Hague region Eindhoven region Breda Tilburg

m²

Rationale Progress

Capitalizing upon NSI’s strengths:

  • NSI’s tenant focus
  • Skills & funds to innovate and

invest

  • In house letting teams,

development & property management Occupancy top priority:

  • Proactive approach expiration

calendar VNOI accelerated

  • VNOI data integrated into

CRM system

  • Letting ‘De Rode Olifant’

shows approach is paying off

  • 15% lower refurbishment

costs Rode Olifant Increased opportunities of scale

  • Reducing operational costs
  • Reducing overhead
  • Leveraging operational

synergies

  • Increased opportunities tenant

retention Synergies gradually kicking in:

  • Cost synergies to amount to
  • approx. € 2.0 FY ‘12
  • Full benefits from operational

synergies expected to materialize as of Q4 2012

  • First successes

Increased access to financial markets

  • Increased visibility for both

equity and debt capital markets

  • NSI is included in MidCap
  • €25 million equity issue
  • 60% stock dividend 2011 final

dividend

  • Syndicated loan extended
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SLIDE 6

Strategy & Markets

Mechelen Campus 60,768 m² Tenants: Borealis Polymers, Cochlear, Endemol, Haskoning Belgium

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SLIDE 7

Portfolio & Market Focus

Switzerland The Netherlands

* 232 properties; €1.6 billion * Retail and Offices * Retail: day to day shopping

  • 10,000 m²
  • Yield: 7.4% (GIY)

*Offices

  • Focus on Randstad
  • Multi tenant
  • Approx. 5,000 m²
  • Yield: 9.7% (GIY)

* 4 properties: €119m * GIY: 6.7% * Exit strategy in progress

Belgium

* 40 properties; €590m * Offices and Warehouses (GIY 8.9%) * Offices: multi tenant * Warehouse on logistic axes (North/South and East /West

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SLIDE 8

Direct Investment Result

Consolidated

Q1 2012 x €1,000 per avg share x €1 ∆ in € 2012 vs. 2011 Q1 2011 x €1,000 per avg share x €1 Gross rental income 41.499 0.69 15,628 25.871 0.60 Service costs not recharged

  • 1.482
  • 0.03
  • 1,075
  • 407
  • 0.01

Operating costs

  • 4.938
  • 0.08
  • 1,389
  • 3.549
  • 0.08

Net rental income 35.079 0.58 13,164 21.915 0.51 Financing income 28

  • 15

13

  • Financing expenses
  • 14.007
  • 0.23
  • 5,923
  • 8.084
  • 0.19

Administrative costs

  • 1.816
  • 0.03
  • 817
  • 999
  • 0.02

Direct investment result before tax 19.284 0.32 6,439 12.845 0.30 Corporate income tax

  • 80
  • 61
  • 19
  • Direct investment result after

tax 19.204 0.32 6,378 12.826 0.30 Direct result attritutable to minority interests

  • 3.023
  • 0.05
  • 3,023
  • Direct investment result

16.181 0.27 3,355 12.826 0.30

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SLIDE 9

Gross Rental Income Bridge

25,871 17,300 78

  • 72
  • 1,678

41,499 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000

x € 1,000

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SLIDE 10

Portfolio Rent Development

Average effective contractual rent/m² (NL)

110,00 140,00 170,00 200,00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012

Offices Retail Offices quarterly

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Vacancy In Portfolio (%)

3,0 3,1 2,9 3,4 3,5 4,7 4,6 4,9 4,3 4,8 4,7 5,1 4,9 11,9 12,8 13,1 13,0 13,7 14,7 14,1 16,0 13,7 14,8 16,1 21,1 24,0 6,6 6,5 6,0 10,5 10,1 10,3 14,8 14,5 13,0 15,3 13,6 10,6 12,0 7,9 8,7 8,7 9,1 9,5 10,4 10,2 11,2 9,9 10,5 11,0 15,9 17,8

0,0 5,0 10,0 15,0 20,0 25,0 30,0

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012

Retail Offices Industrials Total

  • Healthy occupancy Retail at friction levels
  • In Offices focus is on actively managing expiration calendar
  • Redevelopment of properties to new concepts impact vacancy until completion
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SLIDE 12

Property values

  • Full quarterly revaluation, 25%

external

  • Since peak 2007 approx. 25% re-

valuation in offices

  • Valuation offices and industrial

Belgium increased

  • Valuation per m2 below replacement

costs per m2 indicates general low level of valuations

  • Increased deal activity in the market;

investors returning to the market

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SLIDE 13

2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 2012 2013 2014 2015 2016 2017 e.v. retail

  • ffices

industrials

14% 32% 16% 18% 17% 12% 14% 23% 4% 36% 4% 22%

Expiration of Leases 31 March 2012 (NL)

rental income x €1,000

4% 21% 15% 13% 21% 14%

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SLIDE 14

Lease Strategy – Client Focus

 Multi tenant over single tenant: – Spread the risk – Accelerate occupancy rate improvement – Aiming at smaller and medium sized business  Improving of lettability by increasing quality and sustainability  Client focus:

  • Retail specialist and local managers
  • CRM and vacancy management (offices)
  • In-house technical management

 Flexible leasing schemes at certain dedicated locations

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SLIDE 15

Huur Service Kosten Parkeren

Traditioneel vastgoed

Huur Service kosten Operator inkomsten meetingrooms parkeren memberships Horeca / IT partner inkomsten

HNKR concept

HNKR Business model

diensten

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SLIDE 16

HNK Amsterdam

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SLIDE 17

HNK Rotterdam

Vasteland Scheepvaartkwartier Kop van Zuid

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SLIDE 18

HNK Rotterdam

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SLIDE 19
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SLIDE 20

HNKR Clubroom

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SLIDE 21

Fixed Float Total Hedge d % Fixed Maturity Interest % # banks NL 128.1 765.2 893.2 746.6 97.9% 1.7 4.4% 10 CHF 80.9

  • 80.9
  • 100.0%

1.4 3.3% 1 BE 74.3 211.3 285.7 120,0 68.0% 3.2 3.9% 5 Total 283.3 976.5 1,259.8 866.6 91.3% 2.1 4.2% 14

Loan book & Hedging

per country

 Hedge portfolio of swaps: No overhedged positions, no margin calls  Debt maturity in the Netherlands to be further extended

  • NSI is financed by well

capitalized financial partners

  • NSI is committed to active

relationship management with its core financiers

  • Novelty of insurance

company in syndicate

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SLIDE 22

Loan Duration

x € 1,000

 Refinancing 2012 2/3rds covered  BE: €130 mln refinanced in 2012, first expiry (€ 10 mln) end of 2013  €225mln NSI syndicated loan extended to 2015; €50m syndicated to insurance company  VNOI syndicate (amounts are exposure):

  • RCF A (€ 30.4 mln) and Term A (€ 121 mio) to expire 30/6/2013
  • RCF B (€ 9.2 mln) to expire 20/11/2013
  • Term B (€ 99 mln) and Ancillary Fac. € 25 mln) to expire 30/6/2014
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SLIDE 23

Outlook 2012

 Managing the balance sheet

  • Disposal program smaller assets mainly offices NL
  • Swiss properties

 Fully using synergies

  • Improving former VNOI portfolio (client focus occupancy)
  • 2.0 – 2.5m cost synergies

 Branding NSI’s office portfolio

  • Alliances with operators

 (Re)development of properties

  • Shopping centre Keizerslanden, Deventer
  • Extension of several smaller shopping centres
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SLIDE 24

Redevelopment of Properties

Shopping centre Keizerslanden Deventer

To be constructed 7,660 m2 , to be renovated 7,430 m2 Expected extra rental income €1.6m Value before redevelopment €18.9m Expected Investment of €21m Expected value after redevelopment €45.8m Demolition works: Q1 2012, Construction starts Q4 2012 Expected completion in 2014

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SLIDE 25

25

Impression

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SLIDE 26

Financials

Archimedesweg Leiden 2,500 m² Tenants: Proxy, Xendo

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SLIDE 27

Balance Sheet

Consolidated

x €1,000 31-03-2012 31-12-2011 31-03-2011 Total non-current assets 2,186,735 2,334,212 1,372,734 Total current assets 143,908 18,356 17,764 Total assets 2,330,643 2,352,598 1,390,498 Total shareholders equity 895,404 909,620 600,105 Interest bearing loans 999,822 1,122,648 592,758 Financial derivatives 67,192 62,297 19,239 Deferred tax liabilities 1,886 1,678 973 Redemption requirement long-term liabilities 226,439 137,189 115,313 Financial derivatives

  • 96

460 Debts to credit institutions 94,529 73,727 42,696 Other accounts payable and deferred income 45,371 256,325 177,423 Total shareholders’ equity and liabilities 2,330,643 2,352,568 1,390,498 * including minority share

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SLIDE 28

Indirect Investment Result

Consolidated

x €1,000 Q1 2012 Q4 2011 Q1 2011 Revaluation of investments

  • 26,581
  • 18,879
  • 5,097

Elimination of rental incentives

  • 293
  • Result from other investments
  • 170
  • 254

Net result on sales of investments

  • 127
  • Movements in market value of financial

derivatives

  • 4,799
  • 5,926

11,564 Exchange-rate differences

  • 523
  • 14

275 Allocated management costs

  • 581
  • 573
  • 340

Merger costs

  • 6,557
  • 217

Result from bargain purchase

  • 68,161
  • Indirect investment result before tax
  • 32,777

36,509 5,931 Corporate income tax

  • 193
  • 114
  • 80

Indirect investment result after tax

  • 32,970

36,395 5,851 Indirect result attributable to minority interests

  • 332

2,034

  • Indirect investment result
  • 33,302

38,429 5,851

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SLIDE 29

Portfolio Bridge

2,321,813 1,899

  • 4,005
  • 23,839
  • 4,293

1,551 1,134 2,294,260 2.000.000 2.250.000 2.500.000

x € 1,000

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SLIDE 30

Direct Investment Result

Consolidated

x €1,000 Q1 2012 Q4 2011 Q1 2011 Gross rental income 41,499 42,575 25,871 Service costs not recharged

  • 1,482
  • 1,469
  • 407

Operating costs

  • 4,938
  • 4,902
  • 3,549

Net rental income 35,079 36,204 21,915 Financing income

  • 28

46 13 Financing costs

  • 14,007
  • 14,822
  • 8,084

Administrative costs

  • 1,816
  • 1,819
  • 999

Direct investment result before tax 19,284 19,609 12,845 Corporate income tax

  • 80
  • 113
  • 19

Direct investment result after tax 19,204 19,496 12,826 Direct result attributable to minority interests

  • 3,023
  • 2.608
  • Direct investment result

16,181 16,88 12,826