Kempen European Property Seminar 30 May 2012 in Amsterdam
Profile Top 3 listed Dutch mixed real estate fund Dutch REIT / Listed on Amsterdam Euronext (Midkap AMx) € 2.29bn Portfolio: € 203m TRI: Outstanding shares: 63,381,376 Mixed fund Dutch Office 2 home markets (NL, B) portfolio: Exit strategy for Switzerland 39% High yield fund (8,9% GIY) Focus on retail and offices (50/50 on average) NL: retail and offices B: offices and warehouses Focus on small and medium sized companies Financial highlights Quarterly dividend, 30-50% Stock LTV target 50%, Fixed interest > 80% 80% free float, main shareholder 20%
Financial ratios Consolidated x € 1,000 Q1 2012 Q4 2011 Q1 2011 Investments 2,294,260 2,321,813 1,357,829 Shareholders’ equity 895,404 909,620 600,105 Shareholders’ equity NSI 763,647 781,218 600,105 Debts to credit institutions 1,315,693 1,329,166 737,412 (excluding derivatives) Q1 2012 Q4 2011 Q1 2011 Loan to value (%) 57.3 57.2 54.4 Average interest rate (%) 4.3 4.2 4.3 Average maturity loans (years) 2.3 2.1 2.1 Fixed interest loans (%) 91.6 91.3 91.3 Interest coverage ratio 2.5 2.4 2.7 NAV 12.86 12.96 13.86 EPRA NAV 13.83 14.02 14.27
Steady Result & Loan To Value LTV 60 57,3 57,2 57,2 54,9 54,8 55 52,2 50 49,7 50 46,9 45 40 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012 Direct result and Dividend 56,030 45,327 46,635 48,510 47,810 50,037 51,627 52,398 16,181 1.40 1.36 1.36 1.36 1.34 1.34 1.26 1.19 0.26 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012 Dividend Direct result
Business Highlights m² Rationale Progress 120 Capitalizing upon NSI’s Occupancy top priority: 100 • Proactive approach expiration strengths: • NSI’s tenant focus calendar VNOI accelerated 80 • Skills & funds to innovate and • VNOI data integrated into 60 invest CRM system • Letting ‘De Rode Olifant ’ 40 • In house letting teams, shows approach is paying off • 15% lower refurbishment development & property 20 management costs Rode Olifant 0 Amsterdam region Rotterdam region The Hague region Eindhoven region Tilburg Utrecht region Breda Increased opportunities of Synergies gradually kicking scale in: • Reducing operational costs • Cost synergies to amount to • Reducing overhead approx. € 2.0 FY ‘12 • Leveraging operational • Full benefits from operational Merger with VastNed synergies synergies expected to Offices/Industrials materialize as of Q4 2012 • € 1.0 bn portfolio • Increased opportunities tenant • First successes • € 68m (35%) book profit on retention acquisition Increased access to financial • Strong focus on Randstad markets • Integration completed • Increased visibility for both Record of renewals and new leases • NSI is included in MidCap equity and debt capital markets in 2011 • € 25 million equity issue 10,000 m² letting for the Red • 60% stock dividend 2011 final Elephant The Hague dividend • Syndicated loan extended Introduction in the Euronext Amsterdam Midcap Index (AMx)
Strategy & Markets Mechelen Campus 60,768 m² Tenants: Borealis Polymers, Cochlear, Endemol, Haskoning Belgium
Portfolio & Market Focus The Netherlands Belgium Switzerland * 232 properties; € 1.6 billion * 4 properties: € 119m * 40 properties; € 590m * Retail and Offices * GIY: 6.7% * Offices and Warehouses (GIY 8.9%) * Retail: day to day shopping * Exit strategy in progress * Offices: multi tenant 10,000 m² * Warehouse on logistic Yield: 7.4% (GIY) axes (North/South and East /West *Offices Focus on Randstad Multi tenant Approx. 5,000 m² Yield: 9.7% (GIY)
Direct Investment Result Consolidated ∆ in € Q1 2012 per avg Q1 2011 per avg x € 1,000 x € 1,000 share 2012 vs. share x € 1 x € 1 2011 Gross rental income 41.499 0.69 15,628 25.871 0.60 Service costs not recharged - 1.482 - 0.03 - 1,075 - 407 - 0.01 Operating costs - 4.938 - 0.08 - 1,389 - 3.549 - 0.08 Net rental income 35.079 0.58 13,164 21.915 0.51 Financing income 28 - 15 13 - Financing expenses - 14.007 - 0.23 - 5,923 - 8.084 - 0.19 Administrative costs - 1.816 - 0.03 - 817 - 999 - 0.02 Direct investment result before 19.284 0.32 6,439 12.845 0.30 tax Corporate income tax - 80 - - 61 - 19 - Direct investment result after 19.204 0.32 6,378 12.826 0.30 tax Direct result attritutable to - 3.023 - 0.05 - 3,023 - - minority interests Direct investment result 16.181 0.27 3,355 12.826 0.30
Gross Rental Income Bridge x € 1,000 50000 45000 40000 - 72 78 - 1,678 35000 17,300 30000 25000 41,499 20000 15000 25,871 10000 5000 0
Portfolio Rent Development Average effective contractual rent/m² (NL) 200,00 Offices Retail Offices quarterly 170,00 140,00 110,00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012
Vacancy In Portfolio (%) • Healthy occupancy Retail at friction levels • In Offices focus is on actively managing expiration calendar • Redevelopment of properties to new concepts impact vacancy until completion 30,0 Retail Offices 25,0 24,0 Industrials Total 21,1 20,0 16,0 17,8 14,7 14,8 15,3 14,1 16,1 15,9 14,5 13,0 15,0 12,8 13,1 14,8 13,6 13,0 11,9 13,7 13,7 12,0 10,5 10,3 11,2 11,0 10,1 10,5 10,6 10,4 10,0 10,2 9,9 9,1 8,7 9,5 8,7 7,9 6,6 6,5 4,3 4,7 4,8 4,9 6,0 4,6 5,1 3,5 5,0 2,9 4,9 3,4 3,0 3,1 4,7 0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012
Property values • Full quarterly revaluation, 25% external • Since peak 2007 approx. 25% re- valuation in offices • Valuation offices and industrial Belgium increased • Valuation per m2 below replacement costs per m2 indicates general low level of valuations • Increased deal activity in the market; investors returning to the market
Expiration of Leases 31 March 2012 (NL) rental income x € 1,000 16.000 23% 32% 14.000 18% 17% 12.000 16% 14% 10.000 21% 12% retail 8.000 15% offices 14% 13% 6.000 industrials 4.000 36% 22% 4% 21% 2.000 14% 4% 4% 0 2012 2013 2014 2015 2016 2017 e.v.
Lease Strategy – Client Focus Multi tenant over single tenant: – Spread the risk – Accelerate occupancy rate improvement – Aiming at smaller and medium sized business Improving of lettability by increasing quality and sustainability Client focus: - Retail specialist and local managers - CRM and vacancy management (offices) - In-house technical management Flexible leasing schemes at certain dedicated locations
HNKR Business model Huur Service kosten Huur Operator inkomsten meetingrooms memberships Service Kosten Horeca / IT partner inkomsten diensten Parkeren parkeren Traditioneel vastgoed HNKR concept
HNK Amsterdam
HNK Rotterdam Scheepvaartkwartier Vasteland Kop van Zuid
HNK Rotterdam
HNKR Clubroom
Loan book & Hedging per country • NSI is financed by well capitalized financial partners • NSI is committed to active relationship management with its core financiers • Novelty of insurance company in syndicate Fixed Float Total Hedge % Fixed Maturity Interest # banks d % NL 128.1 765.2 893.2 746.6 97.9% 1.7 4.4% 10 CHF 80.9 - 80.9 - 100.0% 1.4 3.3% 1 BE 74.3 211.3 285.7 120,0 68.0% 3.2 3.9% 5 Total 283.3 976.5 1,259.8 866.6 91.3% 2.1 4.2% 14 Hedge portfolio of swaps: No overhedged positions, no margin calls Debt maturity in the Netherlands to be further extended
Loan Duration x € 1,000 Refinancing 2012 2/3rds covered BE: € 130 mln refinanced in 2012, first expiry ( € 10 mln) end of 2013 € 225mln NSI syndicated loan extended to 2015; € 50m syndicated to insurance company VNOI syndicate (amounts are exposure) : RCF A ( € 30.4 mln) and Term A ( € 121 mio) to expire 30/6/2013 • RCF B ( € 9.2 mln) to expire 20/11/2013 • Term B ( € 99 mln) and Ancillary Fac. € 25 mln) to expire 30/6/2014 •
Outlook 2012 Managing the balance sheet • Disposal program smaller assets mainly offices NL • Swiss properties Fully using synergies • Improving former VNOI portfolio (client focus occupancy) • 2.0 – 2.5m cost synergies Branding NSI’s office portfolio • Alliances with operators (Re)development of properties • Shopping centre Keizerslanden, Deventer • Extension of several smaller shopping centres
Redevelopment of Properties Shopping centre Keizerslanden Deventer To be constructed 7,660 m 2 , to be renovated 7,430 m 2 Expected extra rental income € 1.6m Value before redevelopment € 18.9m Expected Investment of € 21m Expected value after redevelopment € 45.8m Demolition works: Q1 2012, Construction starts Q4 2012 Expected completion in 2014
Impression 25
Financials Archimedesweg Leiden 2,500 m² Tenants: Proxy, Xendo
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