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2015 Ba 2015 Bank a nk and nd Bo Bondho ndholder ders s Present esentation 1 October 2015 SEGRO Park Dsseldorf-City TAK AKING AD ADVAN ANTAGE OF I F IMPROVI VING M MAR ARKETS Financial Review (Justin Read) Funding


  1. 2015 Ba 2015 Bank a nk and nd Bo Bondho ndholder ders s Present esentation 1 October 2015 SEGRO Park Düsseldorf-City

  2. TAK AKING AD ADVAN ANTAGE OF I F IMPROVI VING M MAR ARKETS  Financial Review (Justin Read)  Funding Overview (Octavia Peters, Head of Treasury and Tax)  Business Review (David Sleath, CEO)  Wrap-up (David Sleath) and Q&A  Appendices 2

  3. TAK AKING AD ADVAN ANTAGE OF I F IMPROVI VING M MAR ARKETS  Presentation including Q&A should last c. 45 minutes  Please join us for drinks and canapés at the end  Opportunity to catch up with/meet some of the wider SEGRO finance team Harry Stokes Shilpa Mandalia Ellie Dale Simon Clubbs Head of Investor Treasury Dealer Investor Relations Director of Tax Relations & Research Coordinator 3

  4. Fi Finan ancial al Rev Review ew Ju Justin in Re Read ad Gro roup Fin Finan ance Dire Director Origin, Park Royal (CGI)

  5. TAK AKING AD ADVAN ANTAGE OF I F IMPROVI VING M MAR ARKETS Adjusted EPS, 9. 9.2p 2p +3% EPRA NAV per 416p 416p  Strong operational performance share, +8% Like for like rental +4. 4.3% 3%  Positive portfolio valuation movement across all our income growth major markets +6. 6.0% 0% Capital value growth  Investing for growth – bias in favour of development Rent to come from £22m £22m current pipeline Interim dividend 5. 5.0p 0p (from 4.9p) 5

  6. INCOME S STATEM EMEN ENT 3.7% increase in Adjusted PBT (9.3% on constant currency basis) H1 2015 1 2015 H1 2014 1 2014 £m £m Gross rental income 101.2 107.5 Property operating expenses (15.8) (20.0) Net r rent ntal i inc ncome 85. 85.4 87. 87.5 Share of joint ventures’ adjusted profit 1 23.6 22.6 Joint venture fee income 6.7 5.4 Administration expenses 2 (13.0) (11.7) Adj djus usted o d ope perating ng pr profit 2 102.7 102. 103.8 103. Net finance costs (33.5) (37.1) Adj djus usted pr d profit be before tax 2 69. 69.2 66. 66.7 Tax on adjusted profit 0.7% 1.3% 1 Net property rental income less administrative expenses, net interest expenses and taxation 2 Adjusted PBT excludes a £4.8m pension settlement charge 6

  7. DRIVE VERS OF F NET R RENTAL AL I INCOME CHAN ANGE Like-for-like net rental income +4.3% £4.0m £5.9m £118.9m £11.8m £116.6m £(0.5)m £(6.0)m £(4.5)m £(13.0)m • Group: up: +4. 4.3% 3% JVs at JVs at • UK: +5.8% share share • CE: –0.5% £31.4m £31.2m Prior year incl. £3.1m payment from Neckermann administrators and £2.7m surrender premium at Pegasus Park Group Group £87.5m £85.4m H1 2014 Disposals Acquisitions Completed Space taken Like-for-like Surrender Currency H1 2015 developments back for net rental premiums translation development income & other 7

  8. VA VACANCY R RAT ATE R RECONCILIAT ATION Speculative development completions and Energy Park sale impact vacancy 7.4% 0.3% 0.1% 0.4% 0.6% Speculative 6.3% development 1 1.8% Speculative (0.3%) development 1 1.4% Standing assets Standing assets 4.9% 5.6% 31 December Long-term Short-term take- New Acquisitions Disposals 30 June 2015 2014 lettings backs developments 8 1 Speculative developments completed in the past 18 months

  9. MAI AIN D DRIVE VERS O OF E F EPRA N A NAV V GROWTH 8% increase in EPRA NAV per share reflects valuation rise, offset by c4p of one-off items 38.2p (0.6)p (3.3)p 416p (1.5)p 9.2p 384p (10.2)p 31 December Adjusted EPS Final dividend Realised and Pension Swap close-out Other 30 June 2015 2014 unrealised gains settlement movements incl FX 9

  10. FINAN ANCIAL AL S SUMMAR ARY  Strong like-for-like net rental income growth  Disciplined management of operating and financing costs  Portfolio valuation driving 8% NAV uplift  Modest gearing reduction despite net investment during the period 10

  11. Fundi unding Rev ng Review ew Octavia P avia Peters rs Head He ad of T Tre reas asury y an and T Tax ax 11 CWS-Boco, Lodz

  12. FINANCIAL P POSI OSITION ON Reduced financing costs; enhanced financing capability 30 30 June 2015 2015 31 Dec 2014 31 D 2014 £m £m  Net debt (incl JVs) increased £77m reflecting net investment Group o up onl nly Net borrowings (£m) 1,777 1,679  Secured a further £150m of 299 4 Group cash and undrawn facilities (£m) 429 facilities post-period end Weighted average cost of debt 1 (%) 4.0 4.4  Attractive marginal cost of Group Interest cover 2 (times) 2.3 2.2 borrowings of c2% Inc ncludi uding J ng JVs at s sha hare  Net borrowings (£m) 2,117 2,040 FITCH re-affirmed A- rating LTV ratio 3 (%) 39 40 Int nto t the he s second nd ha half… Average duration of debt (years) 6.3 6.9  £208m 2015 bond redemptions Fixed rate debt as proportion of net debt (%) 73 80 fully funded including £110m deferred consideration related to Weighted average cost of debt 1 (%) 3.9 4.2 SELP. Minimal net impact on interest cost 1 Based on gross debt, excluding commitment fees and amortised costs 2 Net rental income / EPRA net finance costs (before capitalisation) on an annualised basis 3 Includes £110m deferred consideration from the creation of the SELP JV 12 4 £449m including new facilities agreed post-period end

  13. ‘LOOK OOK-THROUGH’ L LOAN TO VA VALUE R RAT ATIO 30 J 30 June 2015 2015 Weight ghted a d average ge cost o of £m gr gross de debt bt, % 1 Group gross borrowings 1,802.1 4.0 Group cash & equivalents (24.9) Group ne up net bo borrowings ngs 1, 1,777. 777.2 5.0 2 SELP deferred consideration (109.7) Share of JV net borrowings 340.2 3.2 Total properties 5,159.3 Loan t n to v value ue r ratio 38. 38.9% 9% 1 Excluding commitment fees and amortised costs 2 Coupon on deferred consideration for the purpose of EPRA earnings (cash rate of 7%) 13

  14. DEBT M T MATU TURITY PROFILE As at 30 September 2015, £ millions PROFO FORMA Debt bt M Mat atur urity y Profile ( (inc ncludi uding JV ng JV de debt bt at at s shar hare) ave average age mat atur urity 6 y 6.3 ye year ars PROFO FORMA FO FOR NEW FA FACIL ILITIE ITIES S SIG IGNED IN IN JU JULY and S and SEPT 500.0 £100m bond & £108m bond 400.0 300.0 £m 200.0 £300m bond £250m 100.0 £200 £225m bond £200m £150m m bond £177m bond bond bond bond 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Year SEGRO Bonds SEGRO Bank Debt JV debt at share SEGRO cash 14

  15. EUR URO C CUR URRENCY EXPOSUR URE A AND ND HE HEDGIN ING Balance sheet, £m • €1.41:£1 as at 30 June 2015 30 June 2015 • € assets 88% hedged by € liabilities 2,000 Assets 88% hedged • €195m (£138m) of residual exposure – 4% of Group NAV Other Euro 1,500 liabilities • Illustrative NAV sensitivity vs €1.41: Euro currency • +5% (€1.48) = –c£7m (c.0.9p per share) 1,000 swaps • -5% (€1.34) = +c£7m (c.0.9p per share) Euro debt 500 Loan to Value (on look-through basis) at €1.41:£1 is 39%, sensitivity vs €1.41: Euro gross assets • +5% (€1.48) LTV -0.6%-points 0 • -5% (€1.34) LTV +0.6%-points Income Statement, £m Half Year to 30 June 2015 50 • Average rate for 6 months to 30 June 2015 €1.37:£1 Income 63% hedged 40 • € income 63% hedged by € expenditure (including interest) Euro income • Net € income for the period €17m (£12m) – 17% of Group 30 Euro costs • Illustrative annualised net income sensitivity versus €1.37: 20 • +5% (€1.44) = –c.£1.2m (c.0.2p per share) 10 • -5% (€1.30) = +c.£1.3m (c.0.2p per share) 0 15

  16. TREASURY STR TR TRATE TEGY A AND P PRIORITI TIES  Consistent approach to funding strategy  Unsecured funding on balance sheet; core bond debt supported by flexible bank facilities  Committed to a relationship banking model; seek to award ancillary business to these banks  Funding in joint ventures with no recourse to the Group; likely to be secured on JV assets  Relatively high levels of and currency and interest rate hedging protecting balance sheet and supporting stability of income  Short-term priorities  2015 debt maturities  Manage liquidity profile of ongoing development programme and capital recycling  Ensure fixed interest cover and currency position is appropriate  APP refinancing 16

  17. Busi siness Rev ess Review, David David Sle leat ath, C , Chie ief Executive ive SEGRO Park Düsseldorf-City

  18. Taki king a ng adv dvant ntage ge of impr proving m ng market kets 18 DHL, SEGRO Park Düsseldorf-City

  19. LOOKIN ING TO THE HE F FUTUR URE To be the best owner-manager and developer of warehouse OU OUR and industrial properties and a leading income-focused REIT GOAL Allocate capital to the markets and assets likely to Dis iscip iplin lined produce the best risk-adjusted returns Opera Op ration onal Cap apital al Excelle llence Allo llocatio ion Deliver excellent customer service and optimise performance from our assets Underpin our property performance with Efficient nt c capi pital and nd corpo porate s struc uctur ure an efficient and prudent capital structure and lean support functions 19

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