Nepi Results Presentation h1 2013

Interim Results Presentation
June 2013
1
Introduction
 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
2
General strategy
 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
3
Highlights
 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
4
Financial performance
30 Jun 13 31 Dec 12 30 Jun 12 31 Dec 11 30 Jun 11 31 Dec 10

Distribution per
12.93 12.05 11.24 10.48 9.77 9.26
share (€ cents)
Adjusted NAV
3.10 2.88 2.63 2.43 2.33 2.22
per share
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)
5
Romania – Macro economic
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

(2.5) (2.7) (2.7) (2.7) (2.6) (2.5)
(% of GDP)
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
 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
6
Slovakia – Macro economic
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

(4.3) (3.2) (3.0) (2.7) (2.0) (1.9)
(% of GDP)
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 (%)

3.6 1.9 2.0 2.1 2.2 2.3
(EU harmonised)
 Eurozone country expected to avoid recession

 Politically stable
 Moody’s Country rating ► A2
Source: EIU – Country Forecast July 2013
7
Contracted rent profile per sector
€ million
Expiry profile – gross rentals
40
35 Retail Office Industrial
30
25
20
15
10
5
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Tenant profile – gross rentals
80% 5% 15%
Type A Type B Type C
Weighted average duration of 5.8 years

8
Operational performance
 Vacancies & arrears
 Renewals
 Retail
 Office
 Industrial
9
Debt repayment profile
Bank loans reimbursement schedule
€ million
80
Alpha Bank
70 BRD
60 BCR
Investkredit
50 Eurohypo
40 Nord LB
KBC Bank
30
Unicredit/Banca Romaneasca
20 Raiffeisen
10
0
2013 2014 2015 2016 2017 and
beyond
10
Interest rate hedge position
6%
5 year SWAP 3month Euribor
5%
CAP SWAP
4%
3%
2%
1%
0%
Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun
2006 2007 2008 2009 2010 2011 2012 2013
2.5%
Yield Curve SWAP rate Cap rate
2.0%
1.5%
1.0%
0.5%
0.0%
2014 2015 2016 2017 2018
11
Acquisition and Development Pipeline
€ million
600
Money Spent Committed Controlled Secured Exclusivity
500
400
300
237 458
200
22
100
61 149
52
0
Developments and Acquisitions Further Opportunities
Extensions
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.
12
 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
13
Developments under construction
 Galati Shopping City (Galati)
 Kaufland Value Extensions:
‒ Petrosani
‒ Sfantu Gheorghe
‒ Sighisoara
 The Office (Cluj-Napoca)
14
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
15
Zilina
Slovakia
Cluj-Napoca
Deva
Romania
Galati
Braila
Targu Jiu
Drobeta-Turnu
Severin Bucharest
Alexandria
16
Mega Mall (Bucharest, Romania)
17
Mega Mall
18
19
20
21
Aupark (Zilina, Slovakia)
Slovakia
22
Retail space Office space
 85 000 residents
22,000 m² 1,700 m²
 Seat of a region of 700,000 residents
99% let In process
Major Tenants
 Billa
 C&A
 Deichmann
 H&M
 New Yorker
Catchment Population
10 minutes 90 000
20 minutes 180 000
30 minutes 380 000
23
24
1st floor (Ground floor)
2nd floor
3rd floor
25
26
27
Deva Shopping Centre (Deva, Romania)
28
Major Tenants  56,650 residents
 Metro  GLA 41,700 m²
 Real (will become Auchan)
 Praktiker DIY  Occupancy 100%
 Domo  Extension planned 12,400 m²
 Jysk
 Takko
 DM
15 minutes 75 000
30 minutes 177 000
45 minutes 277 000
Hunedoara
County
396,000 inhabitants
29
30
Possible Extension Land Plot

29,390m²
31
32
33
Galati Shopping City (Galati, Romania)
34
 Braila – Galati Region is known Galati Galati Shopping City

as “Lower Danube
Metropolitan Area”
 400,000 residents in the two

cities
Braila
Braila & Galati

Counties Promenada Mall
812,300 inhabitants
35
36
Phase 1
37
Phase 2
cinema
38
39
40
Kaufland Value Extension (Alexandria, Romania)
41
Kaufland Value Extension (Alexandria, Romania)
42
Severin Shopping Center (Drobeta-Turnu Severin, Romania)
43
Major Tenants  86,475 residents
 Carrefour  Existing GLA 16,574 m²
 Altex
 Deichmann  Occupancy 100%
 Takko  Extension planned 9,447 m²
 Lee Cooper
15 minutes 102 000
30 minutes 138 000
45 minutes 175 500
Mehedinti
County
255,000 inhabitants
44
45
Current Future
46
47
Targu-Jiu Shopping City (Targu-Jiu, Romania)
48
 78,550 residents
 GLA – 26,799 m²
15 minutes 98 500
30 minutes 149 500
45 minutes 323 500
Gorj
County
335,000 inhabitants
49
50
51
Basement
Upper
Ground
52
53
The Office (Cluj, Romania)
54
Railway Intl
Station Airport
The Office
Business
Centre
Old City
Centre
55
1st & 2nd FLOOR 3rd,4th,5th FLOOR PENTHOUSE
53,287m² of office area in 3 phases
GROUND FLOOR
56
57
58
Prospects
 Earnings guidance
 Further opportunities being pursued
‒ Two mall developments
‒ One mall acquisition
59
Questions & Answers
60

Nepi Results Presentation h1 2013

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Nepi Results Presentation h1 2013

Uploaded by

Copyright:

Available Formats

Interim Results Presentation

 A Romanian focused property investment company

 Distribute cash dividends (or return of capital &

 Invest in properties with long term multinational

 In-house property management, asset management,

 The relationship between retained distributable

 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

 First major acquisition outside Romania

30 Jun 13 31 Dec 12 30 Jun 12 31 Dec 11 30 Jun 11 31 Dec 10

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

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

Key indicators 2012 2013 2014 2015 2016 2017

General gov. budget balance

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

 2012 GDP growth positively revised

Source: EIU – Country Forecast July 2013

Key indicators 2012 2013 2014 2015 2016 2017

General gov. budget balance

Unemployment (%) 13.6 13.3 12.8 12.8 12.6 12.3

Price inflation (%)

 Eurozone country expected to avoid recession

Source: EIU – Country Forecast July 2013

Tenant profile – gross rentals

Type A Type B Type C

Weighted average duration of 5.8 years

 Vacancies & arrears

‒ 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

 Galati Shopping City (Galati)

 Kaufland Value Extensions:

 The Office (Cluj-Napoca)

Permitting status of developments not yet commenced

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

20 minutes 180 000

30 minutes 380 000

1st floor (Ground floor)

Possible Extension Land Plot

 Braila – Galati Region is known Galati Galati Shopping City

 400,000 residents in the two

Braila & Galati

15 minutes 102 000

30 minutes 138 000

45 minutes 175 500

30 minutes 149 500

45 minutes 323 500