Key Highlights 2011 Merger with VastNed O/I creates top 3 listed - - PowerPoint PPT Presentation

▶
key highlights 2011 merger with vastned o i creates top 3
SMART_READER_LITE
LIVE PREVIEW

Key Highlights 2011 Merger with VastNed O/I creates top 3 listed - - PowerPoint PPT Presentation

Mar 28, 2023 559 likes •879 views

Solid Results In Merger Transition Year Analyst Presentation - Full Year 2011 17 February 2012 Key Highlights 2011 Merger with VastNed O/I creates top 3 listed Dutch mixed real estate firm with portfolio of 2.3bn and improved access to

slide-1
SLIDE 1

Solid Results In Merger Transition Year

Analyst Presentation - Full Year 2011 17 February 2012

slide-2
SLIDE 2

Key Highlights 2011

 Merger with VastNed O/I creates top 3 listed Dutch mixed real estate firm with portfolio of €2.3bn and improved access to capital markets  Integration completed, on schedule with cost synergy realization  Record number of square meters let in Dutch offices and industrial buildings demonstrates success of NSI lease strategy  Profit after tax of €62.7m, including a one-off book profit as a result of the merger (bargain purchase)  Year-end net asset value up versus end-Q3  Direct investment result of € 1.19 (almost) fully paid out

slide-3
SLIDE 3

NSI Financial Performance 2011

Oevel, Belgium 29,259 m² logistics building Tenant: UTI Belgium

slide-4
SLIDE 4

IFRS Merger Accounting

In this presentation the following applies:  The consolidated P&L only includes the Q4 2011 results of the VNOI real estate portfolio  The consolidated balance sheet at year-end 2011 includes the entire VNOI real estate portfolio  The figures of NSI over the first three quarters of 2011 and the 2010 comparable figures have not been adjusted For comparison purposes, we will occasionally deviate from the above and present pro forma combined figures. In such case, this will be explicitly stated on the slide.

slide-5
SLIDE 5

Balance Sheet

Consolidated

x €1,000 NSI 30-09-11 VNOI 30-09-11 Adjust- ments Combined 30-09-11 Combined 31-12-11 Total fixed assets 1,363,083 946,869 29,545 2,339,497 2,334,212 Total current assets 16,278 16,494

  • 3,816

28,956 18,356 Total assets 1,379,361 963,363 25,729 2,368,453 2,352,568 Total shareholders equity 550,210 367,902* 22,569 940,681* 909,620* Total long-term liabilities 616,408 477,717 465 1,094,590 1,186,623 Total current liabilities 212,743 117,744 2,695 333,182 256,325 Total equity and liabilities 1,379,361 963,363 25,729 2,368,453 2,352,568 IFRS 12.71 13.41 13.47 12.96 EPRA 13.58 14.50 14.43 14.02 Equity value VNOI 262,641 Consideration transferred 194,480 Result from bargain purchase 68,161 * including minority share

slide-6
SLIDE 6

Indirect Investment Result

Consolidated

x €1,000 2011 2010 Revaluation of real estate investments

  • 37,753
  • 24,761

Revaluation of other investments

  • 2,433

1,283 Net result on sales of investments 835

  • 247

Movements in market value of financial derivatives

  • 13,608

328 Exchange-rate differences

  • 106
  • 905

Allocated management costs

  • 1,592
  • 1,303

Merger costs

  • 8,141
  • 1,283

Result from bargain purchase 68,161

  • Indirect investment result before tax

5,363

  • 26,888

Corporate income tax

  • 722
  • 426

Indirect result after tax 4,641

  • 27,314

Indirect result attributable to minority interests 2,034

  • Indirect investment result

6,675

  • 27,314
slide-7
SLIDE 7

Portfolio Bridge

1,360,689 970,663 9,333 14,994

  • 4,528
  • 33,238
  • 944
  • 3,571

3,365 2,316,763 1.200.000 1.450.000 1.700.000 1.950.000 2.200.000 2.450.000

x € 1,000

slide-8
SLIDE 8

Direct Investment Result

Consolidated

2011 x €1,000 per avg share x €1 ∆ in € 2011 vs. 2010 2010 x €1,000 per avg share x €1 Gross rental income 119,964 2.55 16,794 103,170 2.48 Service costs not recharged

  • 2,751
  • 0.06
  • 1,013
  • 1,738
  • 0.04

Operating costs

  • 15,716
  • 0.33
  • 2,969
  • 12,747
  • 0.31

Net rental income 101,497 2.16 12,812 88,685 2.13 Financing income 1,226 0.02 1,120 106

  • Financing expenses
  • 39,740
  • 0.84
  • 6,797
  • 32,943
  • 0.79

Administrative costs

  • 4,180
  • 0.09
  • 834
  • 3,346
  • 0.08

Direct investment result before tax 58,803 1.25 6,301 52,502 1.26 Corporate income tax

  • 165
  • 61
  • 104
  • Direct investment result after

tax 58,638 1.25 6,240 52,398 1.26 Non-controlling interest

  • 2,608
  • 0.06
  • 2,608
  • Direct investment result

56,030 1.19 3,632 52,398 1.26

slide-9
SLIDE 9

Direct Investment Result

Per Quarter, Consolidated

x €1,000 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Gross rental income 42,575 25,695 25,823 25,871 Service costs not recharged

  • 1,469
  • 467
  • 408
  • 407

Operating costs

  • 4,902
  • 3,515
  • 3,750
  • 3,549

Net rental income 36,204 21,713 21,665 21,915 Administrative costs

  • 1,819
  • 713
  • 649
  • 999

Interest

  • 14,776
  • 8,192
  • 7,475
  • 8,071

Direct investment result before tax 19,609 12,808 13,541 12,845 Corporate income tax

  • 113

18

  • 51
  • 19

Direct investment result 19,496 12,826 13,490 12,826 Ex minority share 16,888 12,826 13,490 12,826

slide-10
SLIDE 10

Direct Investment Result

Zooming in on Q3 and Q4

(incl. pro forma combined Q3 2011 numbers for comparison purposes)

x €1,000 Q4 2011 NSI + VNOI Q3 2011 NSI + VNOI Q4 2011 NSI Q3 2011 NSI Q4 2011 VNOI Q3 2011 VNOI Gross rental income 42,575 44,911 25,115 25,695 17,460 19,216 Service costs not recharged

  • 1,469
  • 913
  • 742
  • 467
  • 727
  • 446

Operating costs

  • 4,902
  • 5,437
  • 3,895
  • 3,515
  • 1,007
  • 1,922

Net rental income 36,204 38,561 20,478 21,713 15,726 16,848 Administrative costs

  • 1,819
  • 1,944
  • 1,050
  • 713
  • 769
  • 1,231

Interest

  • 14,776
  • 15,639
  • 8,247
  • 8,192
  • 6,529
  • 7,447

Direct investment result before tax 19,609 20,978 11,181 12,808 8,428 8,170 Corporate income tax

  • 113
  • 143
  • 39

18

  • 74
  • 161

Direct result 19,496 20,835 11,142 12,826 8,354 8,009 Ex minority share 16,888 5,746

slide-11
SLIDE 11

Gross Rental Income Bridge

103,170 17,460 3,196

  • 50
  • 3,361

119,964 70000 80000 90000 100000 110000 120000 130000

x € 1,000

slide-12
SLIDE 12

Financial ratios

Consolidated

x €1,000 FY 2011 FY 2010 Investments 2,321,813 1,358,097 Shareholders’ equity 909,620 579,933 Shareholders’ equity NSI 781,217 579,933 Debts to credit institutions (excluding derivatives) 1,326,166 744,188 FY 2011 FY 2010 Loan to value (%) 57.2 54.8 Average interest rate (%) 4.2 4.4 Average maturity loans (years) 2.1 2.0 Fixed interest loans (%) 91.3 93.9 Interest coverage ratio 2.4 2.7 NAV €12.96 €13.44 EPRA NAV €14.02 €14.11

slide-13
SLIDE 13

Loan Duration

1000 51000 101000 151000 201000 251000 301000 351000 401000 451000 501000 2012 2013 2014 2015 2016 2017 2019 2022 x € 1,000

 Refinancing 2012 2/3rds covered  NL: Over €100 mln refinanced since merger date  Be: € 130 mln refinanced in 2012, first expiry = € 10 mln end of 2013  Negotiation to extend €150 mln NSI syndicated loan to 2015

slide-14
SLIDE 14

100000 200000 300000 400000 500000 600000 700000 800000 900000 Netherlands Belgium Switzerland Fixed Float Total Hedged % Fixed Maturity Interest % NL 128.1 765.2 893.2 746.6 97.9% 1.7 4.4% CHF 80.9

  • 80.9
  • 100%

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

Loan book & Hedging

per country

 Hedge portfolio of swaps: No overhedged positions  Maturity in the Netherlands to be extended

slide-15
SLIDE 15

Strategy & Markets

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

slide-16
SLIDE 16

Loan To Value

1.36 1.36 1.36 1.34 1.40 1.34 1.26 1.19

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

2004 2005 2006 2007 2008 2009 2010 up to 2011 Dividend Direct result

Direct result and Dividend

52,2 50 49,7 46,9 57,2 54,9 54,8 54,4 56 56,9* 57,2 40 45 50 55 60 2004 2005 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 04 2011

LTV

* Joint books, excluding merger effects

slide-17
SLIDE 17

Portfolio

57% 29% 13% 1%

2011

Offices Retail Industrials Residential

47% 48% 4% 1%

2010

Offices Retail Industrials Residential

69% 26% 5%

2011

Netherlands Belgium Switzerland

91% 9%

2010

Netherlands Switzerland

slide-18
SLIDE 18

Revaluation results Netherlands, Switzerland and Belgium

Netherlands (x €1,000) 2011 Q4 2011 Q3 2011 Q2 2011 Q1 2011 2010 2009 2008 Offices

  • 31,400
  • 10,278
  • 5,667
  • 8,795
  • 6,660
  • 21,435
  • 37,875
  • 44,871

Retail

  • 622
  • 3,525

317 925 1,661

  • 1,179
  • 7,920

7,770 Industrial

  • 1,351
  • 1,071
  • 265

135

  • 150
  • 2,416
  • 5,504
  • 4,367

Residential 135

  • 65
  • 10

20 60

  • 1,747

44

  • 248

Total

  • 33,238
  • 14,809
  • 5,625
  • 7,715
  • 5,089
  • 26,777
  • 51,255
  • 41,716

Switzerland (x €1,000) 2011 Q4 2011 Offices 208

  • 263

Retail

  • 1,152
  • 762

Total

  • 944
  • 499

Belgium (x €1,000) 2011 Q4 2011 Offices 2,556 2,556 Industrials

  • 6,126
  • 6,126

Total

  • 3,571
  • 3,571

8,1 8,1 8,0 8,1 8,2 8,2 8,2 8,4 6,3 6,3 6,3 6,4 6,2 6,2 6,3 6,3

6 7 8 9

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

  • ffices

retail

Net yields at 31 December

slide-19
SLIDE 19

Portfolio Rent Development

Average contractual rent/m² (NL)

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

2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Offices

Retail

Incline is

  • ne-off

effect

  • Market rents have bottomed out
slide-20
SLIDE 20

Vacancy in portfolio (%)

3,0 3,5 3,5 3,9 3,9 4,1 5,2 4,3 4,5 5,7 5,0 5,4 11,7 11,9 12,8 13,1 13,0 14,7 14,1 14,7 13,9 15,2 16,9 21,1 1,7 1,0 1,1 5,0 1,1 1,0 2,3 2,4 2,3 2,4 18,2 22,8 20,9 25,5 21,1 15,3 18,7 17,5 16,9 21,1

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

Retail Offices NSI Large-scale retail VNOI NL VNOI B

slide-21
SLIDE 21

Vacancy in the portfolio (in %)

16,9 27,3 21,7 22,7 Q3 2011 Q4 2011 11,0 20,8 15,6 15,9 Q3 2011 Q4 2011

Offices, NL Total portfolio

slide-22
SLIDE 22

Terminations and letting in Q4 2011 Dutch portfolio

Terminations

Offices 23,562 m² in 3.0% of the offices portfolio Retail 1,516 m² in 0.5% of the retail portfolio Large contracts : Rijksgebouwendienst, Gouda 5,965 m² Bentley Systems, Hoofddorp 2,960 m² VION, Son 2,538 m²

Lettings Offices 31,615 m² new: 17,495 m² renewals: 14,120 m² Retail 16,802 m² in 5,59% of the retail portfolio Large contracts : Machine Support, Ridderkerk 2,650 m² C&A, Heerlen 1,847 m²

slide-23
SLIDE 23

Expiration of rental contracts 31 December 2011 (NL)

rental income x €1,000 6% 22% 14% 14% 12% 31% 23% 17% 15% 10% 13% 22% 4% 37% 21% 14% 3% 22% 2.000 4.000 6.000 8.000 10.000 12.000 14.000 16.000 18.000 2012 2013 2014 2015 2016 2017 e.v. retail

  • ffices

industrials

slide-24
SLIDE 24

2012: Off To A Good Start

Letting Activities Dutch Portfolio (Jan/Feb)

Large contracts : Spaces, Den Haag 10,000 m² Imtech, Den Haag 3,310 m² Blömer 2145, Nieuwegein 2,145 m² Harbers, Duiven 2,107 m² Detail Consult, Rotterdam 1,791m² Crop, Amersfoort 1,048 m² Accon, Zutphen 881 m² Biotoop, Den Haag 540 m² Total 21,822 m²

slide-25
SLIDE 25

Lease strategy – client focus

 Multi tenants 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 centre managers
  • CRM and vacancy management (offices)
  • In-house technical management

 Flexible leasing schemes at certain dedicated locations

slide-26
SLIDE 26

Example: La Tour, 14,000 m² office building

 Q2 2010:

  • E&Y leaves
  • ccupancy rate drops

below 30%  Q4 2010:

  • dedicated commercial

manager hired

  • Multi tenants lease

strategy  Q3 2011: 85% let  Negligible investments

30% 85%

slide-27
SLIDE 27

 100% vacant since 2007  VNOI’s strategy: single tenant  Q4 2011: NSI decides for a multi tenants strategy  €6m = €600 / m² investment  €1.7-2.5m annual rental income  €7-9m value increase expected in a 1-3 year period

Branding NSI Offices

Example: De Rode Olifant Den Haag

slide-28
SLIDE 28

Branding NSI Offices Example: De Rode Olifant Den Haag

slide-29
SLIDE 29

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
slide-30
SLIDE 30

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