REITs and the listed sector providing a boost for CEE markets? - PowerPoint PPT Presentation

REITs and the listed sector – providing a boost for CEE markets? Tobias Steinmann, Director Public Affairs W a r s a w, 8 N o v e m b e r 2 0 1 8

1 EPRA’s mission = to promote, develop, and represent the European listed real estate sector EPRA members No. % Representing > €450 Billion Property Companies & REITS 153 57 of real estate assets Investors* 63 24 Academics 24 9 Consultants & others 27 10 Total 267 100 *Investment Companies, Insurance Companies/Funds, Banks & Stockbrokers

2 An investment offering a large diversification 104 companies with over 12,000 assets and portfolios in 20 countries across 9 sectors Sources: EPRA, SNL Financial

EPRA Developed Europe Index 3 Market Cap (€ Country Companies % of Index Bln) Germany 13 70.9 25.0% United Kingdom 40 68.3 24.1% France 6 37.7 13.3% Netherlands 5 29.2 10.3% Sweden 14 28.0 9.9% Switzerland 4 13.2 4.7% Belgium 9 10.8 3.8% Spain 3 10.7 3.8% Finland 3 4.7 1.7% Austria 1 2.9 1.0% Ireland, Italy, Norway 6 7.5 2.6% Total Developed Europe 104 284.0 100.0% Full market cap data as at August 31, 2018 Unibail-Rodamco-Westfield has been classified under the Netherlands

4 Developed Global market cap breakdown REIT/Non-REIT 20.58% 79.42% FTSE EPRA/NAREIT Developed Non-REITs FTSE EPRA/NAREIT Developed REITs Source: EPRA Monthly Statistical Bulletin Data as of: December 29, 2017

5 Developed Europe market cap breakdown REIT/Non-REIT 42.53% 57.47% FTSE EPRA/NAREIT Developed Europe Non-REITs FTSE EPRA NAREIT Developed Europe REITs Source: EPRA Monthly Statistical Bulletin Data as of: December 29, 2017

Countries within the EU with a REIT regime 6 Greece France Bulgaria Belgium The Netherlands 1999 2003 2004 1995 1969 UK Lithuania Germany Italy Finland 2007 2007 2007 2008 2009 Spain Hungary Ireland 2009 2011 2013 Sources: EPRA Global REIT Survey

Spanish SOCIMIs: the revival of listed RE in 2014 7 € 5.0 € 4.5 € 4.0 Combined Market Cap Spanish SOCIMIs in EUR Billion EUR 1.3 Bln Rights Issue EUR 1.3 Bln IPO & Fast-track inclusion in EPRA Spain Index € 3.5 EUR 360 Mln IPO € 3.0 € 2.5 EUR 400 Mln IPO € 2.0 € 1.5 Inception EPRA Spain Index € 1.0 € 0.5 EUR 550 Mln IPO € 0.0 February-14 March-14 April-14 May-14 June-14 July-14

E U R O P E A N L I S T E D R E A L E S T A T E O F F E R S 8 S T R O N G L O N G T E R M P E R F O R M A N C E Europe listed Europe Europe general 15-year annualised total return in local currency real estate government equities bonds Strong Long Term Performance 10.0% 1 year 9.0% 1.7% 6.4% 9.0% 9.2% 3 year 3.5% 1.8% 5.4% 8.0% 7.9% 7.0% 5 year 11.4% 3.8% 8.9% 6.0% 4.9% 5.0% 10 year 5.9% 5.3% 5.0% 4.6% 4.0% 15 year 9.2% 4.6% 7.9% 3.0% 2.0% 1.7% 20 year 7.7% 5.1% 4.8% 1.6% 1.0% Sources: ECB, FTSE, EPRA, Nareit Data as of: June 29, 2018 0.0% Europe Inflation Europe equities Europe bonds Europe listed real estate

E U R O P E A N L I S T E D R E A L E S T A T E O F F E R S 9 A T T R A C T I V E D I V I D E N D Y I E L D 4.5% 4.0% 5-year 3.9% Average 3.5% 3.6% Yield 3.4% 3.0% 2.5% 2.1% 2.0% 2.0% 1.9% 1.5% 1.0% 0.5% 0.1% 0.0% ECB Refinancing rate FTSE Government FTSE Corporate Bonds FTSE All World Europe FTSE EPRA/NAREIT FTSE EPRA/NAREIT Bonds >10 year >10 year Europe Developed Europe Developed Europe Europe Index REITS Index Sources: ECB, FTSE, EPRA, Nareit Data as of: June 29, 2018

10 ICB – Real Estate 11 th sector New structure effective January 1, 2019 Previous sector structure Banks Banks Diversified Insurance Financials Financials Financials Real Estate Insurance Financial Real Estate services

11 Key takeaways European REITs/listed real estate demonstrate strong long-term performance They are a transformative force for countries and cities and contribute to their development They offer access to a large palette of investment strategies and a large number of high- quality assets and sectors while offering higher liquidity There is huge potential to grow the investor base and the sector

Contact 12 General enquiries: info@epra.com Switchboard: +32 0 2739 1010 HEAD OFFICE UK OFFICE HONG KONG OFFICE Square de Meeûs 23 Devonshire House, One Mayfair Place Suite 2207-09, Tower II, Lippo Centre 1000 Brussels, BE London W1J 8AJ, UK 89 Queensway, Admiralty, HK Find more information on www.epra.com The European Public Real Estate Association ("EPRA") is a not-for-profit association registered in Belgium with registered number 0811738560 and VAT registration number BE 0811.738.560. Our registered office is at Square De Meeus23, 1000 Brussels, Belgium. This presentation is intended solely for the addressee and may contain confidential information. Do not use, copy or disclose the information contained in this presentation. Users of information in this presentation do so at their own risk and must still comply with their responsibilities to their regulatory authority or shareholders. We are not liable for incorrect use or interpretation of our published research, policies or guidance. We accept no liability for damage suffered as a consequence of our published research, policies or guidance being used to mislead a third party.