interim results presentation - nepi rockcastle · 4 distribution per share 15.00% recurring...

1

Interim Results Presentation

June 2013

2

A Romanian focused property investment company

Distribute cash dividends (or return of capital & share subscription) on a semi-annual basis

Invest in properties with long term multinational tenants with leases in Euro

In-house property management, asset management, property investment & property development via an integrated approach

Introduction

3

The relationship between retained distributable earnings, property developments, cash holdings & distribution growth per share

Listed securities

Retail – regional dominance

Office – A-grade in prime locations, cities with significant multi-national tenant presence

Increase in scale

Expansion beyond Romania

General strategy

4

Distribution per share 15.00%

Recurring distributable income per share 17.27%

Inclusion in the JSE mid-cap index

Major progress in expansion of acquisition and

development pipeline

First major acquisition outside Romania

Highlights

5

Financial performance

30 Jun 13 31 Dec 12 30 Jun 12 31 Dec 11 30 Jun 11 31 Dec 10 Distribution per share (€ cents) 12.93 12.05 11.24 10.48 9.77 9.26

Adjusted NAV per share 3.10 2.88 2.63 2.43 2.33 2.22

Gearing* 18.9% 25.0% 33.9% 32.1% 41.9% 49.0%

Shares in issue 159 277 789 144 362 152 125 461 951 102 783 693 88 497 979 76 933 734

Property portfolio analysis % by gross rental %

by value %

by area

Retail 40% 43% 45%

Office 55% 54% 45%

Industrial 5% 3% 10%

* (Debt – cash) / (investment property + listed securities)

6

2012 GDP growth positively revised Improved 2013 outlook Continued political and economic stability after 2012 elections Moody’s Country rating ► Baa3

Source: EIU – Country Forecast July 2013

Key indicators 2012 2013 2014 2015 2016 2017

Real GDP growth (%) 0.7 2.4 3.0 3.8 4.3 4.0

General gov. budget balance (% of GDP) (2.5) (2.7) (2.7) (2.7) (2.6) (2.5)

General gov. debt (% of GDP) 33.3 36.9 37.3 37.9 37.8 37.1

Unemployment (%) 5.6 4.8 4.3 3.8 3.4 2.9

Price inflation (%) 3.3 4.8 3.0 3.3 3.2 2.8

Romania – Macro economic

7

Source: EIU – Country Forecast July 2013

Eurozone country expected to avoid recession Politically stable Moody’s Country rating ► A2

Key indicators 2012 2013 2014 2015 2016 2017

Real GDP growth (%) 2.0 0.7 2.3 3.2 3.6 4.3

General gov. budget balance (% of GDP) (4.3) (3.2) (3.0) (2.7) (2.0) (1.9)

General gov. debt (% of GDP) 52.1 54.8 55.8 56.0 54.3 52.7

Unemployment (%) 13.6 13.3 12.8 12.8 12.6 12.3

Price inflation (%) (EU harmonised) 3.6 1.9 2.0 2.1 2.2 2.3

Slovakia – Macro economic

8

Expiry profile – gross rentals € million

10

20

0

15

5

25 30 35 40

Weighted average duration of 5.8 years

Contracted rent profile per sector

80% 5% 15%

Type A Type B Type C

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Retail Office Industrial

Tenant profile – gross rentals

9

Vacancies & arrears

Renewals

Retail

Office

Industrial

Operational performance

10

Bank loans reimbursement schedule € million

Debt repayment profile

0

10

20

30

40

50

60

70

80

2013 2014 2015 2016 2017 andbeyond

Alpha Bank

BRD

BCR

Investkredit

Eurohypo

Nord LB

KBC Bank

Unicredit/Banca Romaneasca

Raiffeisen

11

Interest rate hedge position

0%1%2%3%4%5%6%

5 year SWAP 3month EuriborCAP SWAP

2006 2008 Jun Dec Jun Dec

2009 Jun Dec Jun

2010 Dec Jun

2007 Dec Jun

2011 Dec Jun

2012 Dec Jun

2013

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

2014 2015 2016 2017 2018

Yield Curve SWAP rate Cap rate

12

Acquisition and Development Pipeline

Committed: Projects currently under construction and acquisitions finalised or committed to after 30 June 2013. Controlled: Projects where the land is controlled, but not yet under construction. Secured exclusivity: Projects where NEPI has exclusivity and due diligence and/or contract negotiation is ongoing. Note that capitalised interest and cost relating to committed acquisitions are not included.

52 61 149

237

22

458

0

100

200

300

400

500

600

Developments andExtensions

Acquisitions Further Opportunities

Money Spent Committed Controlled Secured Exclusivity

€ million

13

Completed since 2012

‒ The Lakeview Office Building (Feb 2013)

‒ Timisoara Building D (Feb 2013)

‒ Alexandria Kaufland Value Extension (May 2013)

Acquisitions under completion*

‒ Aupark (Zilina, Slovakia)

‒ Deva Shopping Centre (Deva)

‒ Severin Shopping Center (Drobeta-Turnu Severin)

Distressed debt acquisition

‒ Sibiu Shopping City (Sibiu)


* Note: Not completed as at 30 June 2013

14

Developments under construction

Galati Shopping City (Galati)

Kaufland Value Extensions:

‒ Petrosani

‒ Sfantu Gheorghe

‒ Sighisoara

The Office (Cluj-Napoca)


15

Permitting status of developments not yet commenced

Project Location CU PUZ PUZ CU AC AC

Mega Mall Bucharest

Brasov Shopping City Brasov

Kaufland Value Extension Vaslui

Piata Victoriei Office Bucharest

Targu-Jiu Shopping City Targu-Jiu

Vulcan Value Centre Bucharest

CU PUZ Urbanisation Certificate for PUZ PUZ Urban Zoning Plan CU AC Urbanisation Certificate for AC AC Building Permit


16

Romania

Targu Jiu

Bucharest

Alexandria

Braila

Galati

Drobeta-Turnu Severin

Deva

Cluj-Napoca

Slovakia

Zilina


17

Mega Mall (Bucharest, Romania)

18


Mega Mall

19


20


21


22

Aupark (Zilina, Slovakia)

Slovakia

23

Catchment Population

10 minutes 90 000

20 minutes 180 000

30 minutes 380 000

85 000 residents

Seat of a region of 700,000 residents


Major Tenants Billa C&A Deichmann H&M New Yorker

Retail space Office space

22,000 m² 1,700 m²

99% let In process

24


25

1st floor (Ground floor)

2nd floor

3rd floor


26


27


28

Deva Shopping Centre (Deva, Romania)

29


Hunedoara County

396,000 inhabitants

Catchment Population 15 minutes 75 000 30 minutes 177 000 45 minutes 277 000

Major Tenants Metro Real (will become Auchan) Praktiker DIY Domo Jysk Takko DM

56,650 residents

GLA 41,700 m²

Occupancy 100%

Extension planned 12,400 m²

30


31

Possible Extension Land Plot 29,390m²


32


33


34

Galati Shopping City (Galati, Romania)

35


Braila – Galati Region is known as “Lower Danube Metropolitan Area” 400,000 residents in the two

cities

Braila & Galati Counties

812,300 inhabitants

Galati

Braila

Promenada Mall

Galati Shopping City

36


37


Phase 1

38


Phase 2

cinema

39


40


41

Kaufland Value Extension (Alexandria, Romania)

42

Kaufland Value Extension (Alexandria, Romania)

43

Severin Shopping Center (Drobeta-Turnu Severin, Romania)

44

Mehedinti County

255,000 inhabitants

Severin Shopping Center (Drobeta-Turnu Severin, Romania) 86,475 residents Existing GLA 16,574 m² Occupancy 100% Extension planned 9,447 m²


15 minutes 102 000

30 minutes 138 000

45 minutes 175 500

Major Tenants Carrefour Altex Deichmann Takko Lee Cooper

45


46

Current Future


47


48

Targu-Jiu Shopping City (Targu-Jiu, Romania)

49

Gorj County

335,000 inhabitants


78,550 residents

GLA – 26,799 m²


15 minutes 98 500

30 minutes 149 500

45 minutes 323 500

50


51


52

Basement Upper


Ground

53


54

The Office (Cluj, Romania)

55

Railway Station

Intl Airport

The Office

Old City Centre

Business Centre


56


GROUND FLOOR

1st & 2nd FLOOR 3rd,4th,5th FLOOR PENTHOUSE

53,287m² of office area in 3 phases

57


58


59

Prospects

Earnings guidance

Further opportunities being pursued

‒ Two mall developments

‒ One mall acquisition

60

Questions & Answers

Slide Number 1Slide Number 2General strategyHighlightsFinancial performanceSlide Number 6Slide Number 7Contracted rent profile per sectorOperational performanceDebt repayment profileInterest rate hedge positionSlide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Mega Mall (Bucharest, Romania) Mega Mall (Bucharest, Romania) Mega Mall (Bucharest, Romania) Mega Mall (Bucharest, Romania) Mega Mall (Bucharest, Romania) Aupark (Zilina, Slovakia)Aupark (Zilina, Slovakia)Aupark (Zilina, Slovakia)Aupark (Zilina, Slovakia)Aupark (Zilina, Slovakia)Aupark (Zilina, Slovakia)Deva Shopping Centre (Deva, Romania)Slide Number 29Slide Number 30Slide Number 31Slide Number 32Slide Number 33Galati Shopping City (Galati, Romania)Galati Shopping City (Galati, Romania)Galati Shopping City (Galati, Romania)Galati Shopping City (Galati, Romania)Galati Shopping City (Galati, Romania)Galati Shopping City (Galati, Romania)Galati Shopping City (Galati, Romania)Kaufland Value Extension (Alexandria, Romania)Kaufland Value Extension (Alexandria, Romania)Severin Shopping Center (Drobeta-Turnu Severin, Romania)Severin Shopping Center (Drobeta-Turnu Severin, Romania)Severin Shopping Center (Drobeta-Turnu Severin, Romania)Severin Shopping Center (Drobeta-Turnu Severin, Romania)Severin Shopping Center (Drobeta-Turnu Severin, Romania)Targu-Jiu Shopping City (Targu-Jiu, Romania)Targu-Jiu Shopping City (Targu-Jiu, Romania)Targu-Jiu Shopping City (Targu-Jiu, Romania)Targu-Jiu Shopping City (Targu-Jiu, Romania)Targu-Jiu Shopping City (Targu-Jiu, Romania)Targu-Jiu Shopping City (Targu-Jiu, Romania)The Office (Cluj, Romania)Slide Number 55Slide Number 56Slide Number 57Slide Number 58ProspectsSlide Number 60

interim results presentation - nepi rockcastle · 4 distribution per share 15.00% recurring...

Documents