English - Eurocommercial Properties

1
Half Year 2009/2010 Results
2
€2.2 BILLION OF PRIME RETAIL PROPERTY IN
FRANCE, NORTHERN ITALY AND SWEDEN
Geographic spread
37%
Property type
Property size*
15
75%
13
41%
21%
22%
4%
4
Northern Italy
Shopping centres
< 10,000m2
France
City centre shops/galleries
10 – 30,000m2
Sweden
Retail parks
> 30,000m2
* gross lettable area including
hypermarkets
3
HALF YEAR RESULTS 2009 / 2010
Six months to 31 December 2009
•
Direct investment result: +0.7% to €32.3 million
•
Net property income: +1.3% to €57.2 million
•
Like for like rental growth: +4.2%
•
Sales turnover for the 12 months to 31 December 2009: -0.4%
•
Property revaluations: -1.2% since June 2009
•
Adjusted net asset value: -6.1% since June 2009 to €31.01 per
depositary receipt due to •
Increase in number of shares outstanding by 12.5%
•
Payment of the cash dividend
•
Decline in property values
4
SUCCESSFUL FUND RAISINGS
• €98.8 million raised through accelerated equity offering
in November 2009
• €26.3 million also raised through 41% take up of stock
dividend
• Net proceeds used for two acquisitions in France and
northern Italy and the development of Växjö in Sweden
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SUSTAINABLE INCOME
• Occupancy cost ratio: 8.0%
• Vacancy levels: < 1%
• Rental arrears: 0.85%
• Interest costs fixed: 4.5%
• Overheads controlled and stable
• Only 7 of 1,280 shop units have tenants in administration,
6 of which are still trading and paying rent
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LIKE FOR LIKE RENTAL GROWTH*
12 months to December 2009
5.0%
4.5%
4.0%
3.9%
4.0%
4.2%
Sweden
Overall
3.0%
2.0%
1.0%
0.0%
France
Italy
* excluding extensions at Carosello, Carugate, Milano; Elins Esplanad, Skövde and Ingelsta Shopping, Norrköping
7
RETAIL TURNOVER GROWTH*
12 months to December 2009
COUNTRY
Retail sales
turnover*
SECTOR
Retail sales
turnover*
Fashion
-0.7%
Overall
-0.4%
Shoes
-1.6%
France
-2.5%
Gifts and Jewellery
+2.0%
Health and Beauty
+2.8%
-0.3%
Sport
+4.0%
+0.1%
Restaurants
+0.8%
+2.2%
Sub Total
+1.2%
+0.3%
Electricals
-3.6%
Home Goods
-3.1%
Hyper/Supermarkets
+1.7%
- of which gallery shops
Italy
- of which gallery shops
Sweden
- of which gallery shops
+0.1%
* excluding galleries at Carosello, Carugate, Milano; Elins Esplanad, Skövde
and Ingelsta Shopping, Norrköping
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OCCUPANCY COST RATIOS*
December 2009
10.0%
8.0%
7.7%
8.3%
8.0%
7.4%
6.0%
4.0%
2.0%
0.0%
France
Italy
Sweden
Overall
*rent plus marketing contributions, service charges and property taxes as a proportion of turnover including VAT. Excludes hypermarkets
9
VACANCIES AND RENTAL ARREARS*
At 31/12/08
At 31/12/09
Vacancies
< 1.0%
< 1.0%
Rental arrears (> 90 days)
< 0.5%
< 0.85%
*all figures are shown as a percentage of the quarterly rental income
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VALUATION CHANGES
6 months to 31 December 2009
France
Italy
Sweden
Overall
0.0%
-0.8%
-1.0%
-1.3%
-2.0%
-1.3%
-1.2%
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NET YIELDS*
At 31 December 2009
8.0%
6.0%
5.8%
5.8%
France
Italy
5.8%
5.8%
4.0%
2.0%
0.0%
Sweden**
Overall
*expected net income for the coming year as a percentage of the valuation figure plus deemed purchaser’s costs
**excluding the project at Samarkand, Växjö
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FUNDING SUMMARY AT 31 DECEMBER 2009
Number of shares in issue
40.3 million
Average overall interest
rate (incl. margin)
4.5%
Average loan term
9 years
Average fixed interest period
6 years
Average loan margin
58 bps
Interest cover
2.6x
13
FUNDING SUMMARY AT 31 DECEMBER 2009
Shareholders’ adjusted net equity
€1.25 billion
Total debt
€947 million
Debt to adjusted net equity ratio
76%
Loan to property value ratio
42%
14
FRANCE: PERFORMANCE TO DECEMBER 2009
•
Valuations down 1.3% since June 2009
•
Net initial yield 5.8% compared with 5.7% in June 2009 and 5.1%
in December 2008
•
Rental growth: 3.9%
•
Almost 70% of retail tenants (excluding Moisselles) are now on
ILC index
•
Turnover growth of -2.5%
• Of which gallery shops +0.1%
15
FRANCE OVERVIEW: NUMBER OF CENTRES BY
REGION AND SIZE
8
1
2
7
3
3
2
Paris Region
< 10,000m2
North
10 – 30,000m2
Centre
> 30,000m2
South
* gross lettable area including
hypermarkets
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PLAINE DE FRANCE, MOISSELLES
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PLAINE DE FRANCE, MOISSELLES
• Situated in Moisselles, a pleasant commuter town in Val
d’Oise to the north of Paris just off the Francilienne
• 10,000m2 gallery with 63 shops
• Anchored by a very strong Leclerc hypermarket
• Recently extended in 2007
• Total catchment of 290,000
18
ITALY: PERFORMANCE TO DECEMBER 2009
• Valuations down 1.3% since June 2009
• Net initial yield 5.8% compared with 5.6% in June 2009 and
5.4% in December 2008
• Rental growth: 4.5%
• Turnover growth of -0.3%
• Of which gallery shops +0.1%
19
ITALY OVERVIEW: NUMBER OF CENTRES BY
REGION AND SIZE
1
6
3
3
4
1
Emilia Romagna
10 – 30,000m2
Liguria
> 30,000m2
Lombardia
Toscana
* gross lettable area including
hypermarkets
20
I PORTALI, MODENA
•
Located on the eastern edge of
Modena, a wealthy city in Emilia
Romagna
• Close to existing properties in
Bologna, Ferrara and Imola
•
Gallery of 7,800m2 with 49 shops
anchored by an Ipercoop
hypermarket
•
Solid track record, low occupancy
cost ratios and potential for further
development subject to planning
21
CAROSELLO, CARUGATE, MILANO
•
10 restaurant food court opened
October 2009, fully let
•
Completes the final phase of the
12,600m2 extension and
refurbishment
•
New total lettable area of
52,500m2
•
Net return on cost in excess
of 7.0%
22
SWEDEN: PERFORMANCE TO DECEMBER 2009
• Valuations down 0.8% since June 2009
• Net initial yield 5.8% - unchanged since June 2009 if the
project at Samarkand, Växjö is excluded
• Rental growth: 4.0%
• Turnover growth of 2.2%
• Of which gallery shops +0.3%
23
SWEDEN OVERVIEW: NUMBER OF CENTRES
BY REGION AND SIZE
4
7
5
3
1
Centre
< 10,000m2
South
10 – 30,000m2
> 30,000m2
* gross lettable area including
hypermarkets
24
SAMARKAND, VÄXJÖ
•
Project underway to develop
former Coop hypermarket into
full-service shopping centre of
18,000m2
•
80% pre-let
•
Project cost confirmed at just
under €40 million
•
Net return on cost expected to be
approximately 8%
•
Completion expected in mid 2011