capital raising - rdi reit · 2018. 9. 29. · capital raising structure and timetable structure...
TRANSCRIPT
Capital Raising
February 2014
2 Document name and description here 2 Redefine International P.L.C.
Important information and disclaimer
• This presentation is not an offer of securities for sale in the United States. The securities discussed herein have not been and will not be registered under the US Securities Act
of 1933, as amended (the "US Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the US Securities
Act. No public offering of the securities discussed herein is being made in the United States and the information contained herein does not constitute an offering of securities for
sale in the United States, Canada, Australia or Japan. This presentation is not for distribution directly or indirectly in or into the United States, Canada, Australia or Japan or to
US persons.
• The information contained herein may not be copied or otherwise reproduced to any other person in whole or in part without the express written consent of Redefine International
P.L.C. (the “Company”).
• This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of the
Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities in
the Company or any member of its group (together "Group") or any commitment whatsoever.
• The information contained in this presentation has been prepared by the Company from Company information and publicly available sources. Any estimates, projections, targets
or forecasts contained herein (if any) have been prepared by the management of the Company and involve significant elements of subjective judgment and analysis, which may
or may not be correct. No representation or warranty, either expressed or implied, is or will be made by the Company, its advisers, or their respective affiliates, directors, officers,
partners, employees, agents, representatives or advisers as to the accuracy or completeness of the information contained in this document, or on which this document is based
or of any other written or oral communications with the recipient in connection with an evaluation of any transaction with or relating to the Company, and all liability therefore
(including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. Nothing contained herein or therein is, or shall be relied upon as, a promise,
warranty or representation, whether as to the past, present or the future. The recipient of this presentation acknowledges and agrees that no person has nor is held out as having
any authority to give any statement, warranty, representation or undertaking on behalf of the Company.
• This presentation includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of
forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their
negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements
include all matters that are not historical facts. They appear in a number of places throughout this presentation and include, but are not limited to, statements regarding the
Company's and/or the Group's intentions, beliefs or current expectations concerning, among other things, the Company's and/or the Group's business, results of operations,
financial position, prospects, growth and strategies.
3 Document name and description here 3 Redefine International P.L.C.
Important information and disclaimer (cont.)
• By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees
of future performance and the actual results of the Company and/or the Group's operations, financial position and the development of the markets and the industries in which the
Group operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this presentation. In addition, even if the Group's
results of operations and financial position and the development of the markets and the industries in which the Company and the Group currently operate, are consistent with the
forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. A number of
risks, uncertainties and other factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements.
• Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this presentation reflect the Group's current view with
respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's business, results of operations,
financial condition, prospects, growth and strategies. Investors should specifically consider the factors identified in this presentation, which could cause actual results to differ,
before making an investment decision. Subject to the requirements of the Listing Rules, the Prospectus Rules and the Disclosure and Transparency Rules, the Company
undertakes no obligation publicly to release the result of any revisions to any forward-looking statements in this presentation that may occur due to any change in the Company's
expectations or to reflect events or circumstances after the date of this presentation.
• The presentation is necessarily based on economic, monetary, market and other conditions as in effect on, and the information available to the Company as of, the date hereof
and the Company assumes no responsibility for updating, revising or reaffirming the information contained herein based on circumstances, developments or events occurring
after the date of the presentation. The information contained in the presentation does not address any legal, regulatory, tax or accounting matters that may be relevant to an
assessment of any proposed transaction relating to the Company. Any recipient of this presentation must take their own financial, tax, accounting and legal advice in relation to
any of the matters addressed in this presentation or in relation to any related transaction.
4 Document name and description here 4 Redefine International P.L.C.
Contents
Page
• Capital raising 05 - 06
• Corporate overview 07 - 12
• Portfolio review 13 - 20
• Overview of recent acquisitions 21 - 26
• Asset management 27 - 30
• Looking forward 31 - 33
• Additional information
5 Document name and description here 5 Redefine International P.L.C.
Capital raising structure and timetable
Structure
• Placing of up to 115 million ordinary shares reflecting 9.9% of the current issued share capital of 1,115 million
• Issue price expected to be a small (approximately 5%) discount to market price
• Shares will rank parri passu with existing shares with full entitlement for the interim February 2014 distribution (payable in May 2014)
• Shares being issued across the UK and SA registers
Proposed timetable
• 17 – 19 February: Investor calls
• 20 February: Opening announcement, book build, pricing and commitments and closing announcement
• 28 February: Admission of shares to trading on the LSE and JSE
6 Document name and description here 6 Redefine International P.L.C.
Use of proceeds
Use of Proceeds
• Acquisitions and investment
– Acquisitions of minority interests (c£6m)
– Redevelopment and asset management opportunities associated with the CMC portfolio, Germany (c£10m)
– Market opportunities in the UK and Germany
• Extending debt maturities and deleveraging
– Support the early extension of 2016 debt maturities at lower LTVs and lock-in current interest rates
– Repay working capital facility of £20m
Investor Presentation
February 2014
Schloss Shopping Centre, Berlin
8 Document name and description here 8 Redefine International P.L.C.
Corporate overview and structure
Corporate overview
• Diversified income focused UK REIT (+ £600m market cap)
• Dual listed on LSE (Primary) and JSE (Secondary)
• Strong institutional share registers in both London and
Johannesburg
• Support of 36% major shareholder Redefine Properties
Limited (South Africa’s second largest REIT)
• Included in FTSE All Share, FTSE SmallCap and EPRA
indices
• Exposure to UK, Switzerland, Germany, Netherlands and
Australia
• Strong management teams located in London, Berlin and
Brisbane
Structure
Minorities on JSE
Share Register
Redefine Properties
Limited (JSE)
36.2% 30.4%
Minorities on LSE
Share Register
33.4%
RDI – LSE
RPL – JSE
9 Document name and description here 9 Redefine International P.L.C.
Income focused property investment
• Portfolio and strategy focused on income within tightly defined business segments
• Each business segment supported by specialist and proven asset management teams
• Diversification provides exposure to different sources of income
• Ability to allocate capital to performing business segments
• Policy to distribute at least 90% of distributable earnings (currently 100%)
• Targeted distribution growth of CPI +1% to 2% p.a. through sustainable expansion
• Development exposure to be limited but creating value through asset management is a core strategy
10 Document name and description here 10 Redefine International P.L.C.
Relative positioning
CLS
Development Stabilised
Primary
High yielding
Helical
Bar
plc
11 Document name and description here 11 Redefine International P.L.C.
Forecast dividend yields
Source: Peel Hunt Forecasts (3 February 2014)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Redefin
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New
Riv
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Metr
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and
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Land S
ecuritie
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aftesbury
Develo
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ecuritie
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Work
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Helic
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Derw
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Capital &
Regio
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Unite
Conygar
Investm
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St.
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Capital &
Countie
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12 Document name and description here 12 Redefine International P.L.C.
Corporate objectives
Short Term
• Deliver EPS and DPS as new UK REIT
• Reduce LTV to <50%
• Senior management appointments
• FTSE 250 Index inclusion
• Further reduce cost of capital
• Sustainable distribution growth of CPI +1% to +2% p.a. compound
• Share rating based on a sustainable dividend yield
• Key player in UK listed REIT sector
Medium Term
• Acknowledged leader in UK REIT sector
• Global player with Redefine Properties
• Alternative sources of flexible and cost efficient capital
Long Term
Portfolio review
Bahnhof Altona, Hamburg
14 Document name and description here 14 Redefine International P.L.C.
10.1
1.0
Greater London 90.6%
Reading 9.4%
Gross rental income (£m)
Property portfolio overview
• Government-let offices, motor
trade and roadside services,
retail and residential units
• 73 properties
• 7.5% net initial yield
• Key occupiers include UK
Government, Kwik-Fit and
Malthurst
UK Stable Income UK Retail Hotels Europe
• Regionally dominant shopping
centres and convenience retail
parks
• 7 properties(1)
• 7.0% net initial yield
• Key occupiers include
Debenhams, BHS & ASDA
• 7 London-based budget hotels
• The hotels are let to Redefine
Hotel Management Ltd on a fixed
rental basis with annual reviews
• 7.0% net initial yield
• Branded under Holiday Inn,
Holiday Inn Express and Crowne
Plaza
• 33% strategic shareholding in
hotel management company
(Redefine BDL)
• Properties located in Germany,
Switzerland and the Netherlands.
The portfolio comprises shopping
centres, discount supermarkets
and government-let offices
• 36 properties
• 6.4% net initial yield
• Key occupiers include Primark,
VBG, Aldi, Rewe & Lidl
15.3
1.5
1.1 1.3
Gov. 80.1%
PFS 7.7%
Kwik Fit 5.5%
Other 6.6%
Gross rental income (£m)
3.4
1.9
2.6
1.5 0.8
6.7
4.2
Wigan 16.2%
Coventry 8.9%
Birch'wd 12.2%
Seaham 6.9%
Crewe 4.0%
W Favell 31.7%
Harrow 20.1%
Gross rental income (£m)
14.8
1.4
1.9
German 81.7%
Swiss 7.7%
NLD 10.5%
Gross rental income (£m)
Note: (1) incl. Weston Favell acquired after
year-end
15 Document name and description here 15 Redefine International P.L.C.
Lease expiry profile
3.7
5.0
3.0 2.5
3.7
1.2
3.1 2.9 3.7
4.7
24.7
6.3%
8.5%
5.2%
4.2%
6.4%
2.1%
5.4% 5.0%
6.3%
8.0%
38.4%
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024+
Expiries by gross income excl. Cromwell and Delta (£m)
UK Stable Income UK Retail Hotels Europe % of total
Note: Rental income reflects Group’s share of jointly controlled entities as at 31 August 2013
Hague (£1.9m)
expected to be
extended to
2016
£2.6m relates to
Hamburg of which
over £1.0m is
already under
negotiation
16 Document name and description here 16 Redefine International P.L.C.
UK Stable Income
Market
• Improving occupier market with regional office take-up strengthening
• Stronger investment market conditions
• Valuations stabilising or improving in major regional centres
• Occupancy up to 97.8% reducing operating costs
• Portfolio value down by 1.0%
• Government-let offices reduced to 11.6% of portfolio
• Strong investment and occupier fundamentals for Southbank offices
Performance
• Further sales of non-core assets
• Focus on fewer and higher quality assets with greater emphasis on the South
East
• Reposition assets with higher value alternative uses
• Move into higher growth sectors or locations
Strategy
17 Document name and description here 17 Redefine International P.L.C.
UK Retail
Market
• Consumer related economic indicators improving
• Retailer administrations reduced significantly
• Real rental growth limited
• Investor demand for good quality secondary shopping centres up sharply
• Portfolio valuation increased 2.9% in second half of the year
• Marginal decline in occupancy by 0.9% to 95% largely due to recently
completed units
• 14 new leases totalling 47,500 sq ft completed in Q4 vs 5,000 sq ft of expiries
or break options during the same period
Performance
• Continued focus on income and occupancy protection
• Capital expenditure projects at Birchwood and Harrow to enhance asset quality
and value largely complete
• Capital expenditure programmes at Coventry and Weston Favell initiated
• Rebranding of centres and development of additional sources of income
Strategy
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Hotels
Market
• “Olympic” effect out of the way
• Analysts forecasting 2.0% RevPar growth in 2014 in London
• Occupancies holding at historically high levels
• Regional trends behind London
• Solid performance following slow Jan/Feb 2013
• Very strong fourth financial quarter
• Average occupancy of 83.1% in line with FY2012
• Current trading is encouraging for FY2014
Performance
• Focus to remain on branded, limited service hotels in Greater London
• Capital expenditure and refurbishment programme ongoing
• Capitalise on management expertise
• Exposure to be limited to 15% - 20% of total assets
Strategy
19 Document name and description here 19 Redefine International P.L.C.
Europe
• Enhance income security through lease extensions and indexation
• Deliver asset management opportunities from CMC acquisition
• Sale of smaller non-core assets
Strategy
• Occupancies steady at 98.6%
• Valuations increased 1.3% in Sterling terms
• Successful sales of smaller non-core assets
Performance
Market
• Germany and Switzerland remain relative safe havens
• Investment volumes continue to rise
• Increasing risk appetite
• Cost effective debt available for good quality assets
20 Document name and description here 20 Redefine International P.L.C.
Cromwell
• Co-ordinate strategy with Redefine Properties
• Liquid currency if required for deal making
• Positive diversification
Strategy
• Record operating profit of AUD 102.4m
• Distribution increased by 3.6% to 7.25 cents
• Net gearing reduced to 46% LTV
• Occupancy maintained at 96%
• Distribution guidance of 7.5 cents for FY2014
Performance
Market
• Economy subject to weaker Chinese activity
• Australian Dollar declined c15% against Sterling in the second half of FY2013
• Potential bounce from recently elected Government
Overview of recent acquisitions
Schloss Shopping Centre, Berlin
22 Document name and description here 22 Redefine International P.L.C.
Overview of CMC acquisition
• Portfolio valued at €189.0m reflecting a net initial yield of 5.5%
• €140.8m of stapled debt at a weighted average all-in interest cost of 3.12% p.a.
• Initial yield on equity in excess of 12.0%
• Consideration of €47.1m was settled through the issuance of 32.2m shares at an effective 40.0p per share and €31.4m in cash
• Asset management opportunities to drive both income and capital value growth
• Acquisition of property owning companies - significant saving on transaction costs
• Three high quality retail assets located in the core German investment markets of Berlin, Hamburg and Ingolstadt
• Delivering on strategy to enhance the quality of the portfolio
23 Document name and description here 23 Redefine International P.L.C.
Schloss Shopping Centre, Berlin
• Acquisition value: €93.0
• Gross rental income: €5.0m
• Net initial yield: 5.2%
• WAULT: 7.1 years
• Indexation: 99.07%
• Key tenants: Primark, REWE, dm, Toys R Us,
Cyberport
• Stapled debt: €72.0m
• Cost of debt: 2.94%
• Debt maturity: August 2017
• Occupancy: 99%
• Prime shopping centre, recently redeveloped and located in an established retail location with strong transport links
• Primark introduced in 2012 and has seen exceptional trading since opening
• Opportunities to drive rents from improved footfall and turnover as well as through advertising and commercialisation
24 Document name and description here 24 Redefine International P.L.C.
Bahnhof Altona Shopping Centre, Hamburg
• Acquisition value: €72.5m
• Gross rental income: €4.4m
• Net initial yield: 5.8%
• WAULT: 3.6 years
• Indexation: 94.9%
• Key tenants: Lidl, Media Markt, McDonalds,
Rossman
• Stapled debt: €55.5m
• Cost of debt: 3.68%
• Debt maturity: February 2020
• Occupancy: 100%
• Established retail location, integrally linked to the Altona train station S-Bahn transport network
• Significant surrounding development including up to 3,500 new residential units and concept in-town IKEA store
• Asset management opportunities available to enhance tenant mix and create additional retail space
25 Document name and description here 25 Redefine International P.L.C.
City Arkaden Shopping Mall, Ingolstadt
• Acquisition value: €23.5m
• Gross rental income: €1.6m
• Net initial yield: 5.5%
• WAULT: 5.1 years
• Indexation: 99.7%
• Key tenants: H&M, Thalia
• Stapled debt: €13.3m
• Cost of debt: 1.15% above 3 month Euribor
• Debt maturity: June 2016
• Occupancy: 87%
• Prominent location in one of Ingolstadt's prime retail streets
• Affluent retail catchment with purchasing power significantly above the German average
• Well advanced opportunity to re-position the centre as an institutional quality core retail asset
26 Document name and description here 26 Redefine International P.L.C.
Weston Favell Shopping Centre, Northampton
• Acquisition value: £84.0m
• Net rental income: £6.4m
• Net initial yield: 7.2%
• WAULT: 9.4 years
• Indexation: Tesco lease linked to RPI
• Key tenants: Tesco
• Debt: £50.0m
• Cost of debt: c5.7% p.a.
• Debt maturity: November 2038
• Occupancy: 97.8%
• Centre dominates the wider catchment area
• Lack of supermarket competition in the northeast of Northampton
• Tesco accounts for 53% of the net passing rent
Asset management
Holiday Inn Express, Southwark
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Harrow residential conversion
• Planning gain secured
• Strategy to recycle capital into income producing investments
• Maintain exposure to rising residential market through overage provisions
• Sold to Redrow Homes for £13.4 million
29 Document name and description here 29 Redefine International P.L.C.
St Anne House, Croydon
• Former Home Office Government building originally built in 1960’s
• Asset management strategy to convert now obsolete offices into hotel and residential units
• Secured planning permission
• Sold for £8.4 million (68% premium to book value)
St Anne House
Westfield / Whitgift Centre
Note: All pictures are architect's impressions
30 Document name and description here 30 Redefine International P.L.C.
St George’s, Harrow
• Nando’s: £82,000 p.a (3,491 sq ft) on a new 20
year lease
• Frankie & Benny’s: £102,480 p.a (4,270 sq ft) on a
new 25 year lease with a tenant only break at year
15
• H&M: £175,000 p.a (7,786 sq ft) on a 10 year
lease with a tenant only break at year seven
• Pizza Express: £79,300 p.a (2,859 sq ft) on a new
25 year lease with a tenant only break at year 15
• Vue, Prezzo, McDonalds and TK Maxx units
comprehensively refurbished
• Letting and asset management strategy successfully implemented
• Tenants investing in own stores alongside investment in the centre
• Retailers reporting increased footfall and turnover
Looking Forward
32 Document name and description here 32 Redefine International P.L.C.
Looking forward
• Corporate restructuring complete
• Internationally recognised REIT structure to attract a wider investment audience
• Board and management strengthened
• Focus now firmly on assets and new opportunities
• Continue to improve the quality of the portfolio and long-term income security and growth potential
• Opportunities to diversify sources of funding and reduce cost of capital allowing investment into better quality assets
• Selective redevelopment and investment into existing assets to support income growth
• Opportunistic approach to new acquisition opportunities
• Continue to recycle capital across the portfolio into performing sectors
• Manage risks (increasing interest rates, asset price bubbles)
• Broaden shareholder base
33 Document name and description here 33 Redefine International P.L.C.
Contacts
Mike Watters
Chief Executive Officer
t: +44 (0)20 7811 0100
Stephen Oakenfull
Deputy Chief Executive Officer
t: +44 (0)20 7811 0100
Redefine International P.L.C.
Top Floor, 14 Athol Street
Douglas
Isle of Man IM1 1JA
t: +44(0)1624 689 589
2nd Floor, 30 Charles II Street
London SW1Y 4AE
t: +44 (0)20 7811 0100
www.redefineinternational.com
Additional information
Schloss Shopping Centre, Berlin
35 Document name and description here 35 Redefine International P.L.C.
FY2013 results highlights
• Improved earnings delivered from a stronger financial position
• Increase in full year Adjusted NAV
• Operating environment showing signs of growth
Operating FY2013 FY2012 Change
Occupancy (by area) 97.3% 95.5% + 1.9 ppt
Indexation 51.2% 52.0% - 0.8 ppt
WAULT (years) 8.7 8.6 0.1
Income FY2013 FY2012 Change
Distributable earnings (£m) 30.1 25.5 + 18.0%
Distributable EPS (1)
3.11 4.40 (29.3%)
Dividend per share 3.11 4.40 (29.3%)
Financial Position FY2013 FY2012 Change
Adjusted NAV per share 38.66 36.41 +6.2%
Group LTV 60.4% 81.7% (21.3) ppt
Pro-forma LTV 56.8% n/a
Total shareholder return 58.9% (16.2%) n/a
Notes:
(1) Distributable EPS reflects the additional 388.5m ordinary shares in issue during the year (after taking into account the 9 for 10 consolidation)
(2) Pro-forma LTV reflects the Aviva restructuring announced post year end
(3) Total shareholder return as measured by Datastream
36 Document name and description here 36 Redefine International P.L.C.
Earnings available for distribution
3.11 3.11
4.28 0.31
1.65
0.12 0.02
0.44
0.21 0.20
1.61
0.19
Gross
rental
income Operating
expenses
Income
from
associates
and joint
ventures(2) Investment
management
fee Non-
controlling
interest Net finance
charges
Tax & FX
loss Distributable
EPS
Fee & other
income Admin.
expenses
Notes:
(1) Distributable EPS reflects the additional 388.5m ordinary shares in issue during the year (after taking into account the 9 for 10 consolidation)
(2) Includes all Cromwell distributions received for the year
(3) Relates to CMC earnings from 1 June 2013
UK Stable Income, 37.5%
UK Retail, 20.0%
Europe, 16.9%
Hotels, 25.6%
Income from
new
investments(3)
37 Document name and description here 37 Redefine International P.L.C.
Portfolio valuation
• Portfolio valuations stabilised, up 0.9% excluding non core assets
• Exposure to regional office assets reduced to 11.6%(1) of portfolio as planned
• UK Retail values supported by successful leasing and asset management strategies
• No ‘economic’ impact from valuation changes in non-core assets
Notes:
(1) Reflects percentage of portfolio (including share of jointly controlled entities) by market value but excluding non-core assets
(2) Reflects CMC transaction (part of European portfolio)
(3) Non-core assets include the Delta portfolio (held for sale) and the ICC Criminal Court in the Hague
Portfolio valuation movement
£m
Proportion of
portfolio by value
Market value
31 August 2013
Valuation movement
H2
UK Stable Income 18.3% 151.2 (1.0%)
UK Retail 21.1% 174.6 2.9%
Hotels 18.2% 150.3 0.1%
Europe 15.4% 127.8 1.3%
Total like-for-like portfolio 72.9% 603.9 0.9%
Acquisitions(2)
18.9% 156.6 0.0%
Total investment portfolio 91.8% 760.5 0.9%
Non-core assets(3)
8.2% 67.5 (8.9%)
Total portfolio 100.0% 828.0 (0.2%)
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38.66
36.41
24.78
2.09 2.04 3.11
4.05 3.78 2.22 30.43
8.23
Adjusted NAV per share
Pro-forma(1)
Adjusted NAV
(Aug 2012)
Distributable
EPS
Other items (2)
Adjusted NAV
(Aug 2013)
Impact of
capital raise
Non-
recourse and
residual debt
adjustments
Dividends
Portfolio
revaluation EPRA NAV
(Aug 2012)
+6.2%
EPRA NAV
(Feb 2013)
Cromwell
market
value adj.
Notes:
(1) August 2012 Adjusted NAV per share of 39.06 pence adjusted for the issuance of 490,384,616 new ordinary shares at 26 pence per share and the subsequent 9 for 10 share consolidation
(2) Other items include £16.4m related to the gain on the write-off of VBG debt on restructuring and a performance fee accrual of (£6.4m) in relation to the Investment Adviser’s Agreement
(3) Following the reduction in shareholding to 13.7%, Cromwell is now accounted for at market value which was previously an adjustment to EPRA NAV
(4) All figures are per share reflecting the fully diluted number of shares of 1,017,158 shares as at 31 August 2013
39 Document name and description here 39 Redefine International P.L.C.
13.2
29.2
210.0
73.3
42.4 11.9
47.3
148.1
79.2
18.2
FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023
Debt maturity profile (£m)
Debt position
• Pro-forma(1) Group LTV reduced to 56.8%
• Pro-forma see through LTV including share of JVs reduced to 57.6%
• Pro-forma debt maturity profile significantly enhanced to 9.0 years
• Weighted average interest rate of 4.59%
• 99.9% of debt at fixed or capped rates
Notes:
(1) Pro-forma figures include the impact of the Aviva restructuring post year end and excludes the non-recourse Delta and Hague facilities
£79.2m remaining
Delta facility to be
sold down
(non-recourse)
Planned extensions or refinancing of 2016
maturities already underway:
• St George’s: £40.5m
• Hotels £85.9m
• Cromwell: £37.7m
• Ingolstadt: £11.4m
• Zeta: £37.7m £18.2m Hague
facility –
conditional
extension to
2016
40 Document name and description here 40 Redefine International P.L.C.
Property portfolio metrics
Note: Property metrics as at 31 August 2013
Portfolio Analysis
Total portfolio proportionately
consolidated
% of
portfolio by
market
value
Market
value
31 August
2013 Properties Area (m 2)
Annualised
rental
income
Gross
estimated
market
rental value
Net initial
yield
Weighted
average
lease length
Voids (by
ERV)
Voids (by
lettable
area)
UK Stable Income Portfolio 18.3% 151,214,500 73 122,800 12,056,154 9,886,720 7.5% 9.1 3.9% 2.2%
UK Retail Portfolio 21.1% 174,560,000 6 115,686 14,364,275 15,730,906 7.0% 11.0 5.1% 5.0%
Hotels 18.2% 150,300,000 7 26,744 11,100,000 11,100,000 7.0% 12.3 0.0% 0.0%
Europe 34.3% 284,405,750 36 113,572 16,244,502 16,106,178 6.4% 6.4 1.5% 1.4%
Total (excl. non-core portoflio) 91.8% 760,480,250 122 378,802 53,764,932 52,823,803 6.9% 9.4 2.7% 2.7%
Non-core portoflio 8.2% 67,522,014 17 69,770 8,960,068 5,777,288 12.5% 4.3 3.4% 2.4%
Total (incl. non-core assets) 100.0% 828,002,264 139 448,572 62,724,999 58,601,092 7.3% 8.7 2.8% 2.7%
41 Document name and description here 41 Redefine International P.L.C.
Property portfolio metrics (cont.)
Portfolio Analysis
Consolidated portfolio
%
Ownership
(effective)
Market
value
31 August
2013 Properties Area (m 2)
Annualised
rental
income
Gross
estimated
market
rental value
Net initial
yield
Weighted
average
lease length
Voids
(by ERV)
Voids
(by lettable
area)
UK Stable Income Portfolio
Office 100.0% 100,000,000 23 55,477 8,258,081 6,026,084 7.8% 8.0 4.5% 3.9%
Kw ik Fit Portfolio 100.0% 14,995,000 27 14,870 1,057,411 1,016,988 6.7% 15.9 0.0% 0.0%
Petrol Filling Stations 100.0% 20,970,000 19 46,802 1,477,058 1,477,058 6.7% 11.8 0.0% 0.0%
Total UK Stable Income Portfolio 135,965,000 69 117,149 10,792,550 8,520,130 7.5% 9.3 3.2% 1.8%
UK Retail Portfolio
Birchw ood, Warrington 100.0% 30,020,000 1 36,290 2,560,256 2,929,037 6.9% 17.9 8.4% 8.3%
St Georges, Harrow 100.0% 59,750,000 1 20,312 4,231,020 4,601,570 6.1% 6.7 4.8% 2.4%
Byron Place, Seaham 100.0% 17,860,000 1 10,719 1,456,471 1,532,300 7.2% 13.0 3.4% 4.3%
Crew e 100.0% 9,360,000 1 16,923 840,839 958,822 8.2% 13.1 9.2% 5.9%
Total UK Retail Portfolio 116,990,000 4 84,244 9,088,587 10,021,729 6.6% 11.5 6.1% 5.9%
Hotels
Brentford Lock 71.0% 25,300,000 1 5,673 1,870,000 1,870,000 7.0% 12.3 0.0% 0.0%
Southw ark 71.0% 22,600,000 1 2,181 1,500,000 1,500,000 6.3% 12.3 0.0% 0.0%
Limehouse 71.0% 24,700,000 1 5,747 1,800,000 1,800,000 6.9% 12.3 0.0% 0.0%
Royal Docks 71.0% 22,600,000 1 4,561 1,615,000 1,615,000 6.8% 12.3 0.0% 0.0%
Park Royal 71.0% 16,150,000 1 3,565 1,175,000 1,175,000 6.9% 12.3 0.0% 0.0%
Reading 71.0% 12,500,000 1 3,163 1,040,000 1,040,000 7.9% 12.3 0.0% 0.0%
Earls Court 42.6% 26,450,000 1 1,854 2,100,000 2,100,000 7.5% 12.3 0.0% 0.0%
Total Hotel Portfolio 150,300,000 7 26,744 11,100,000 11,100,000 7.0% 12.3 0.0% 0.0%
Europe
Schloss Centre, Berlin 100.0% 75,938,567 1 19,026 4,260,037 4,324,287 5.3% 7.1 2.0% 1.0%
Bahnhoff Altona, Hamburg 100.0% 61,433,447 1 15,513 3,729,280 3,581,651 5.7% 3.5 0.0% 0.0%
City Arkaden, Ingolstadt 100.0% 19,197,952 1 10,391 1,259,121 1,308,131 6.2% 5.0 11.3% 12.9%
Ciref Berlin / German portfolio 96.0% 18,950,512 15 19,996 1,774,069 1,690,021 8.8% 5.7 0.1% 0.2%
Bremen / Lindenhoff 77.7% 5,895,904 1 4,167 488,903 458,568 7.8% 5.5 0.0% 0.0%
Sw iss portfolio 100.0% 21,443,442 2 4,018 1,403,634 1,480,153 6.2% 7.0 0.0% 0.0%
OBI portfolio 48.0% 18,617,747 2 19,388 1,446,763 1,396,321 7.3% 10.0 0.0% 0.0%
Total European Portfolio 221,477,572 23 92,500 14,361,807 14,239,132 6.1% 6.0 1.7% 1.7%
Wholly owned portfolio 624,732,572 103 320,636 45,342,944 43,880,991 6.9% 9.4 2.5% 2.7%
42 Document name and description here 42 Redefine International P.L.C.
Property portfolio metrics (cont.)
Note: Property metrics as at 31 August 2013
JVs and jointly controlled entities
proportionate share
Market
value
31 August
2013 Properties Area (m2)
Annualised
rental
income
Gross
estimated
market
rental value
Net initial
yield
Weighted
average
lease length
Voids
(by ERV)
Voids
(by lettable
area)
UK Stable Income Portfolio 15,249,500 4 5,652 1,263,605 1,366,590 7.8% 7.4 8.1% 10.6%
UK Retail Portfolio 57,570,000 2 31,442 5,275,689 5,709,177 7.7% 10.3 3.3% 2.8%
Europe 62,928,178 13 21,072 1,882,695 1,867,046 7.6% 9.2 0.3% 0.3%
Total share 135,747,678 19 58,166 8,421,988 8,942,813 7.7% 9.6 3.4% 2.6%
Total portfolio 760,480,250 122 378,802 53,764,932 52,823,803 7.0% 9.4 2.7% 2.7%
Non core portfolio
Delta 100.0% 55,150,000 16 56,892 7,047,056 4,108,415 12.1% 5.2 4.8% 3.0%
Hague 100.0% 12,372,014 1 12,878 1,913,012 1,668,874 14.6% 0.8 0.0% 0.0%
Total non core portfolio 67,522,014 17 69,770 8,960,068 5,777,288 12.5% 4.3 3.4% 2.4%
43 Document name and description here 43 Redefine International P.L.C.
Jointly controlled entities
Note:
(1) Figures are shown as 100%. Ownership % included in table
(2) Annualised rental income reflects gross rents less headlease payments
JVs and jointly controlled entities
%
Ownership
Market
value
31 August
2013 Properties Area (m2)
Annualised
rental
income
Gross
estimated
market
rental value
Net initial
yield
Weighted
average
lease length
Voids
(by ERV)
Voids
(by lettable
area)
UK Stable Income JV and subs
Churchill Court 25.0% 11,300,000 1 9,813 1,473,058 1,795,000 12.3% 3.2 24.5% 24.5%
Pearl House, Sw ansea 50.0% 1,449,000 2 883 160,080 205,080 10.4% 1.0 0.0% 0.0%
The Esplanade, Jersey 50.0% 23,400,000 1 5,514 1,630,600 1,630,600 6.6% 10.0 0.0% 0.0%
Total 36,149,000 4 16,210 3,263,738 3,630,680 7.8% 7.4 8.1% 10.6%
UK Retail Portfolio JVs and subs
Grand Arcade, Wigan 50.0% 77,740,000 1 43,353 6,797,473 7,091,100 7.6% 12.4 3.3% 2.8%
West Orchards, Coventry 50.0% 37,400,000 1 19,530 3,753,904 4,327,253 7.8% 6.5 3.4% 2.8%
Total UK Retail Portfolio 115,140,000 2 62,883 10,551,377 11,418,353 7.7% 10.3 3.3% 2.8%
Europe
Waldkraiburg 48.5% 8,489,761 1 5,395 605,983 577,666 6.7% 10.9 0.0% 0.0%
Kaiserlautern 48.5% 5,383,959 1 3,466 405,747 399,942 7.1% 10.9 0.0% 0.0%
Hucklehoven 48.5% 9,803,754 1 11,065 751,472 751,472 7.2% 13.6 0.0% 0.0%
Premium 48.0% 27,841,297 6 23,780 2,141,814 2,143,669 7.3% 5.8 0.9% 1.0%
Retail sub-total 51,518,771 9 43,706 3,905,016 3,872,749 7.2% 8.6 0.5% 0.6%
VBG portfolio 49.0% 77,730,375 4 45,316 6,522,877 3,508,881 7.9% 9.6 0.0% 0.0%
Total Europe 129,249,147 13 89,021 10,427,894 7,381,630 7.6% 9.2 0.3% 0.3%
Total 280,538,147 19 168,115 24,243,009 22,430,663 7.7% 9.4 3.1% 2.2%
44 Document name and description here 44 Redefine International P.L.C.
Segmental lease expiry profiles
0.5
1.3
0.9
0.1
2.6
0.1
0.8 0.6
1.2
4.1
FY
2014
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
+
UK Stable Income Gross rent (£m)
0.7 0.4
1.4 0.9
0.8 0.4 0.3
1.2 1.5
0.9
4.8
FY
2014
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
+
UK Retail Gross rent (£m)
11.1
FY
2014
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
20
24
+
Hotels Gross rent (£m)
2.4
3.3
0.8
1.4
0.4
0.8
2.8
0.9
1.6
2.6
4.7
FY
2014
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
FY
2024
+
Europe Gross rent (£m)
45 Document name and description here 45 Redefine International P.L.C.
Analysis of debt facilities
Group Debt Analysis
(on balance sheet)
%
Ownership
(effective)
Principal
31 August
2013
Weighted
average
interest rate
(%)
UK Stable Income Portfolio
Office 100.0% 43,779,000 4.13%
Kw ik Fit Portfolio 100.0% 10,734,969 6.37%
Petrol Filling Stations 100.0% 9,026,800 4.19%
Total UK Stable Income Portfolio 63,540,769 4.51%
UK Retail Portfolio
Birchw ood, Warrington 100.0% 29,150,000 6.10%
St Georges, Harrow 100.0% 40,537,500 3.01%
Byron Place, Seaham 100.0% 16,749,910 6.44%
Total UK Retail Portfolio 86,437,410 4.72%
Hotels
Holiday Inn Portfolio 71.0% 73,543,670 4.60%
Earls Court 42.6% 12,359,375 5.19%
Total Hotel Portfolio 85,903,045 4.68%
Europe
Schloss Centre, Berlin 100.0% 61,433,447 2.94%
Bahnhoff Altona, Hamburg 100.0% 47,303,754 3.68%
City Arkaden, Ingolstadt 100.0% 11,357,636 1.80%
Ciref Berlin / German portfolio 96.0% 18,211,523 5.57%
Bremen / Lindenhoff 77.7% 4,015,232 4.95%
Sw iss portfolio 100.0% 11,927,481 1.98%
OBI portfolio 48.0% 13,465,444 2.25%
Total European Portfolio 167,714,517 3.28%
Cromw ell 100.0% 34,522,440 7.30%
Total core debt 438,118,180 4.34%
Non core debt
Delta & The Hague 100.0% 97,370,138 2.15%
Total debt 535,488,319 3.94%
Debt Facilities
JVs and jointly controlled entities
%
Ownership
Principal
31 August
2013
Weighted
average
interest rate
(%)
UK Stable Income JV and subs
Churchill Court 25.00% 9,780,000 6.23%
Pearl House, Sw ansea 50.00% 1,269,000 4.00%
The Esplanade, Jersey 50.00% 20,055,000 6.12%
Total UK Stable Income 31,104,000 6.07%
UK Retail Portfolio JVs and subs
Grand Arcade, Wigan 50.00% 144,240,724 5.68%
West Orchards, Coventry 50.00% 18,635,127 6.29%
Total UK Retail Portfolio 162,875,851 5.75%
Europe
Waldkraiburg 48.47% 5,714,033 2.56%
Kaiserlautern 48.47% 3,559,911 2.62%
Hucklehoven 48.47% 6,690,060 2.57%
Premium 48.00% 21,950,339 5.17%
Retail sub-total 37,914,343 4.08%
VBG portfolio 49.00% 48,549,701 2.64%
Total Europe 86,464,044 3.27%
Total 280,443,895 5.02%
Notes:
Figures reflect 100%
Effective shareholding shown under % ownership
46 Document name and description here 46 Redefine International P.L.C.
UK Retail portfolio
• St George’s Shopping Centre, Harrow
• Valued at £57.5 million (pre refurbishment/re-letting)
• 212,000 sq ft
• Vue Cinemas, Fitness First, H&M, Boots, T.K. Maxx, Prezzo, Pizza Express, Nandos
• Leisure focused retail scheme
• Grand Arcade Shopping Centre, Wigan
• Valued at £76.4 million
• 470,000 sq ft
• Debenhams, M&S, BHS, Monsoon, Next, T.K. Maxx
• Dominant city centre modern scheme
• West Orchards Shopping Centre, Coventry
• Valued at £37.0 million
• 210,000 sq ft
• Debenhams, M&S, Body Shop, WH Smith, KFC
• Dominant city centre scheme
47 Document name and description here 47 Redefine International P.L.C.
UK Retail portfolio (cont.)
• Birchwood Shopping Centre, Warrington
• Valued at £29.2 million
• 400,000 sq ft
• ASDA, Aldi, Argos, Home Bargains, New Look, QVC
• Retail park
• Byron Place Shopping Centre, Seaham
• Valued at £17.1 million
• 115,000 sq ft
• ASDA, Argos, Farmfoods, Peacocks, Wilkinson
• Retail park
• Delamere Place Shopping Centre, Crewe
• Valued at £9.2 million
• 180,000 sq ft
• BHS, Arriva
• Redevelopment
48 Document name and description here 48 Redefine International P.L.C.
UK Retail portfolio (cont.)
• Weston Favell Shopping Centre, Northampton
• Valued at £84.0 million
• 307,763 sq ft
• Tesco, Wilkinsons, Boots and New Look
• Edge of Town
Note: Weston Favell was acquired post the FY2013 year end
49 Document name and description here 49 Redefine International P.L.C.
Hotel portfolio
• Holiday Inn Brentford Lock
• Valued at £25 million
• 61,064 sq ft rentable area @ £24.56 per sq ft
• 134 bedrooms and 12,743 sq ft meeting room area
• Holiday Inn Express Earls Court
• Valued at £27.0 million
• 19,957 sq ft rentable area @ £105.22 per sq ft
• 150 bedrooms and 226 sq ft meeting room area
• Holiday Inn Express Limehouse
• Valued at £23.3 million
• 23,476 sq ft rentable area @ £63.90 per sq ft
• 150 bedrooms and 159.3 sq ft meeting room area
50 Document name and description here 50 Redefine International P.L.C.
Hotel portfolio (cont.)
• Holiday Inn Express Southwark
• Valued at £16.4 million
• 38,373 sq ft rentable area @ £39.09 per sq ft
• 88 bedrooms
• Holiday Inn Express Park Royal
• Valued at £24.0 million
• 61,860 sq ft rentable area @ £24.25 per sq ft
• 108 bedrooms and 1,371 sq ft meeting room area
• Holiday Inn Express Royal Docks
• Valued at £22.4 million
• 49,094 sq ft rentable area @ £30.55 per sq ft
• 136 bedrooms and 190 sq ft meeting room area
51 Document name and description here 51 Redefine International P.L.C.
Hotel portfolio (cont.)
• Crowne Plaza, Reading
• Valued at £11.9 million
• 34,047 sq ft rentable area @ £44.06 per sq ft
• 122 bedrooms and 386 sq ft meeting room area
52 Document name and description here 52 Redefine International P.L.C.
Redefine BDL Hotel Group Limited (“RBDL”)
• RBDL is the UK’s largest independent hotel management and
development company with 60 hotels under management
representing 6,700 rooms in the United Kingdom, Liberia and
South Africa.
• The operations offices are located in London and Glasgow and
a corporate office in the British Virgin Islands. Redefine BDL
Hotels’ key objective is to operate owners’ hotels to best
practice, by dedicating the required management resources
and utilising centralised systems and processes to deliver
overhead savings.
• RBDL offers a wealth of hotel management expertise to
clients, bringing exceptionally strong international hotel brand
relationships as franchisees of five of the largest international
hotel brands (InterContinental Hotels Group, Wyndham
Worldwide, Starwood Hotels & Resorts Worldwide, Hilton
Hotels & Resorts, and Best Western).
• RBDL manages hotel assets through both management
contracts and long term leases. The senior management team
has experience in operating franchised hotels in many different
parts of the world.
• RBDL has developed 3,850 hotel rooms since 2000 and its
vision is to be managing 100 hotels by August 2016.
53 Document name and description here 53 Redefine International P.L.C.
0.00
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1.00
1.20
1.40
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2010
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r 20
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r 201
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y 2
010
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2010
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2011
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r 201
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2011
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1
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2012
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y 2
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2012
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2
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2013
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b 2
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r 20
13
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r 201
3
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y 2
013
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2013
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Au
g 2
013
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p 2
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Oct 201
3
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013
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013
Jan
2014
Cro
mw
ell
Sh
are
Pri
ce
AU
D
Cromwell Cromwell (GBP) ASX 200 Closing
Cromwell
• Identified as an undercapitalised company at the bottom of the cycle with a strong management team
• Provided strategic support as a cornerstone shareholder and underwriter to raise growth capital
• Shareholding reduced to 13.2%
Initial acquisition
of 12.97% at
$0.70
Supported placement
and rights issue at
$0.72 – $0.75
Supported rights
issue at $0.71
Supported
entitlement offer
at $0.68
• Share price (AUD) +29.1% since entry
• Share price (GBP) +23.7% since entry
Share price of $1.035 as at 30 August 2013
Sale of 84.5m
securities between
$0.90 and $0.94
Supported
capital raising at
$0.79
Sale of 8.5m
securities at
$0.96
54 Document name and description here 54 Redefine International P.L.C.
Relative share price performance
20.00
25.00
30.00
35.00
40.00
45.00
50.00
55.00
60.00
65.00
Aug 2
012
Sep 2
012
Oct 20
12
No
v 2
012
De
c 2
012
Jan 2
01
3
Feb
201
3
Ma
r 201
3
Apr
20
13
Ma
y 2
01
3
Jun 2
01
3
Jul 201
3
Aug 2
013
Sep 2
013
Oct 20
13
No
v 2
013
De
c 2
013
Jan 2
01
4
Share
price (
pence)
Redefine International FTSE All Share FTSE 250 FTSE 350 Real Estate
Source: Bloomberg
91.4%
18.0%
40.0%
31.3%