RESULTS PRESENTATION AUGUST 2017 Company pr ofjle Merger of NEPI - PowerPoint PPT Presentation

RESULTS PRESENTATION AUGUST 2017

Company pr ofjle • Merger of NEPI and Rockcastle became efgective as of 11 July 2017. • Leading property investment and development group in CEE, and one of the top ten listed real estate companies in Continental Europe by market capitalisation. • Dominant property portfolios in Romania, Poland and Slovakia and strong presence in Croatia, Bulgaria, Czech Republic and Serbia. • Active portfolio management by a highly experienced management team. • High-quality assets with a strong tenant base. • Diverse debt profjle with strong balance of Eurobond funding as well as secured and unsecured debt. RESULTS PRESENTATION – AUGUST 2017 2

A leading commercial real estate company in CEE NEPI Rockcastle is one of the top ten listed real estate companies in Continental Europe and the largest in CEE Continental European Real Estate landscape by market capitalisation 16 August 2017 (€bn) 25 21.8 20 17.2 15 12.3 10.7 10 9.5 6.7 6.4 6.1 5.5 5.3 5 0 Unibail Vonovia Deutsche Wohnen Klepierre Gecina UBS (CH) Property Fund - NEPI Rockcastle Fonciere Des Regions Swiss Prime Site CPI Property Group Swiss Mixed CEE Real Estate landscape by market capitalisation 16 August 2017 (€bn) 8 6.4 6 4 2.3 2.2 2 1.5 1.0 0 NEPI Rockcastle Immofjnanz CA Immo Atrium GTC RESULTS PRESENTATION – AUGUST 2017 3

Robust portfolio by scale and geographical diversifjcation Increased geographical div ersifjcation and scale with primary focus on CEE market, benefjtting from strong macro prospects Combined direct property portfolio Combined direct and indirect portfolio by market value by market value 48+29+9+6+5+4+1 37+23+12+7+5+4+4+4+3+4 Aug 2017 Aug 2017 Romania 47% Bulgaria 5% Romania 36% Bulgaria 4% Poland 28% Czech Republic 4% Poland 22% Croatia 4% Slovakia 9% Serbia 1% USA 11% United Kingdom 4% Croatia 6% Slovakia 7% Czech Republic 3% Other European Other 4% Countries 5% RESULTS PRESENTATION – AUGUST 2017 4

Well-positioned CEE direct property portfolio High-quality portfolio characterised by: • mainly large/dominant shopping centres; • high-quality assets in densely populated areas or that have good macrodynamics; • low vacancy levels. weighted by ownership NEPI Rockcastle* SLOVAKIA Property value €4 026m Property value €377m Rentable space 1 563 100m 2 Rentable space 98 200m 2 Occupancy rate 96.3% Occupancy rate 97.8% POLAND ROMANIA Property value €1 121m Property value €1 885m Rentable space 371 400m 2 Rentable space 853 700m 2 Occupancy rate 92.0% Occupancy rate 98.5% CZECH REPUBLIC SERBIA Property value €169m Property value €42m Rentable space 74 900m 2 Rentable space 22 200m 2 Occupancy rate 89.3% Occupancy rate 96.0% CROATIA BULGARIA Property value €223m Property value €207m Rentable space 62 100m 2 Rentable space 80 000m 2 Occupancy rate 95.2% Occupancy rate 99.1% * includes Serdika Cent er and Offjce in Bulgaria, acquired with an efgective date of 22 August 2017 RESULTS PRESENTATION – AUGUST 2017 5

Strategy Strong strategic positioning oriented towards robust long-term growth Leading retail business Proven management team and business model • Internally managed business. • Portfolio of dominant retail assets in high growth CEE markets. • Ability to drive asset management initiatives and operational • Focus on dominant retail malls in cities with superior performance. macroeconomic qualities. • History of strong relationships with anchor tenants. • Economies of scale and pr ofjt margin optimisation. Sizeable acquisition and development pipeline Advantageous capital structure • Substantial acquisition pipeline and sizeable development • Low LTV and high interest coverage ratio. projects secured. • Liquid listed securities portfolio for rapid capital deployment. • Focus on high caliber assets able to maintain competitive • Decreasing cost of funding. advantages. RESULTS PRESENTATION – AUGUST 2017 6

NEPI Rockcastle’s income-producing portfolio map (August 2017) RETAIL ROMANIA OFFICE ROMANIA 1 Mega Mall 43 City Business Centre 2 City Park 44 Floreasca Business Park 25 3 Promenada Mall 45 The Lakeview 4 Shopping City Sibiu 46 The Offjce Cluj-Napoca 5 Shopping City Timisoara 47 Victoriei Offjce 6 Iris Titan Shopping Center Poland 7 Shopping City Deva SLOVAKIA 8 Braila Mall 48 Aupark Kosice Tower 31 9 Shopping City Galati 10 Vulcan Value Centre 27 BULGARIA 11 Pitesti Retail Park 32 49 Serdika Offjce* 30 12 Ploiesti Shopping City 13 Shopping City Piatra Neamt UNITED KINGDOM 14 Shopping City Targu Jiu 50 Rockcastle House 29 39 (not presented on the map) 26 15 Severin Shopping Center 38 16 Aurora Shopping Mall 33 28 INDUSTRIAL ROMANIA 17-23 Regional strip centres 24 51 Rasnov Industrial Facility 52 Otopeni Warehouse POLAND Czech Republic 24 Bonarka City Center 25 Galeria Warminska 35 26 Karolinka Shopping Centre 37 34 48 27 Focus Mall Zielona Gora 36 Slovakia 28 Pogoria Shopping Centre 29 Solaris Shopping Centre 30 Focus Mall Piotrkow Trybunalski 31 Galeria Wolomin 32 Galeria Tomaszow Romania 33 Platan Shopping Centre 13 46 23 SLOVAKIA 22 34 Aupark Kosice Mall 21 7 35 Aupark Zilina 4 18 5 43 17 40 36 Korzo Shopping Centrum 9 Croatia 51 19 37 Aupark Shopping Center Piešťany 8 16 14 12 11 CZECH REPUBLIC 15 1,3, 44, 6,10 45, 38 Forum Usti nad Labem 47 52 2 39 Forum Liberec Shopping Centre 20 41 CROATIA 40 Arena Centar Serbia 42 49 Bulgaria SERBIA 41 Kragujevac Plaza BULGARIA 42 Serdika Center* * Serdika Cent er and Offjce acquired with an efgective date of 22 August 2017 RESULTS PRESENTATION – AUGUST 2017 7

Combined key indicators as at 30 June 2017* • Distributable earnings per share (euro cents): 23.46 • Adjusted NAV per share: €6.72 • Income-producing properties weighted by ownership: €3.8bn • Total GLA of 1.48 million m 2 • NOI: €125m • Listed securities portfolio: US$1.33bn (equivalent of €1.16bn) * does not include Serdika Cent er and Offjce RESULTS PRESENTATION – AUGUST 2017 8

Direct portfolio overview INVESTMENT PROPERTY OVERVIEW AS AT 22 AUGUST 2017 (PRO FORMA) Weighted Weighted Weighted GLA Valuation Passing rent/ERV Occupancy Number '000m 2 €m €m % TOTAL PROPERTIES 70 1 889 4 231 297 INCOME-PRODUCING 52 1 563 4 026 277 96.3% Retail 42 1 344 3 560 241 96.0% Offjce 8 191 450 34 98.6% Industrial 2 28 16 2 98.0% DEVELOPMENTS 6 302 193 19 Under construction 2* 121 83 19 Under permitting and pre-leasing 4** 181 65 Land held for development 45 NON-CORE 12 24 12 1 *out of the fjve properties under construction, three are extensions to existing properties. **out of the ten properties under permitting and pre-leasing, six are extensions to existing properties. • Currently present in seven* CEE countries, with 52 income-producing properties. • Focus on dominant retail assets with established high-quality, long-leased and div ersifjed tenants. • 1.56 million m 2 GLA* of income-producing properties. • 93% of direct property portfolio in investment grade rated countries. * Including Serdika Center and Offjce, Bulgaria RESULTS PRESENTATION – AUGUST 2017 9

Listed securities portfolio and strategy • Strategic emphasis on companies which dominate their respective regions and consistently outperform their competitors. • Portfolio concentration on larger, more liquid counters in developed markets, with sustainable growth. • Bias toward US, UK and European retail sectors. • Substantial disposals of listed security positions to fund direct property acquisitions and reduce gearing. • Underlying holdings performed in line with their respective forecasts during the period. • Defensive positioning has mitigated value at risk in times of volatility. • No formal currency hedging of capital positions, as underlying gearing in base currencies as well as collateralisation in EUR provides natural hedging. Listed securities - top 5 Market value as at % of total listed securities Company Sector Jurisdiction 30 June 2017 (USD Million) portfolio Hammerson Retail UK 185 16% Unibail-Rodamco Retail Europe 141 12% Simon Property Group Retail USA 125 11% Ventas Healthcare USA 62 5% Prologis Industrial USA 61 5% 574 49% RESULTS PRESENTATION – AUGUST 2017 10

Finance strategy Robust balance sheet DEBT MATURITY PROFILE AS AT 30 JUNE 2017 (€m) 800 • Funding through a combination of equity, debt and sale of the listed securities portfolio. 600 • Investment grade credit ratings: Baa3, positive outlook - Moody’s BBB, stable outlook - Standard & Poor’s 400 • 68% of the portfolio is unencumbered (excluding joint ventures). 200 • 24% current gearing (targeted: 35%)^. • Immaterial exposure to foreign exchange in respect of 0 direct properties as the business is EUR denominated. 2017* 2018 2019 2020** 2021*** 2022+ Bank debt Bond * The €75m outstanding revolving facility has been repaid in July 2017. ** The €189m outstanding debt of Bonarka City Center, the €82.9m outstanding debt of Aupark Kosice and the €34.8m outstanding debt of Solaris Shopping Centre will be subject to renegotiation for extension closer to maturity. *** Karolinka Shopping Centre, Pogoria Shopping Centre, Platan Shopping Centre and Focus Mall Zielona Gora outstanding debt of €225m will be subject to renegotiation for extension closer to maturity. ^ (loans – cash)/(investment property + listed securities) RESULTS PRESENTATION – AUGUST 2017 11