Solid Results In Merger Transition Year Analyst Presentation - Full Year 2011 17 February 2012
Key Highlights 2011 Merger with VastNed O/I creates top 3 listed Dutch mixed real estate firm with portfolio of € 2.3bn and improved access to capital markets Integration completed, on schedule with cost synergy realization Record number of square meters let in Dutch offices and industrial buildings demonstrates success of NSI lease strategy Profit after tax of € 62.7m, including a one-off book profit as a result of the merger (bargain purchase) Year-end net asset value up versus end-Q3 Direct investment result of € 1.19 (almost) fully paid out
NSI Financial Performance 2011 Oevel, Belgium 29,259 m² logistics building Tenant: UTI Belgium
IFRS Merger Accounting In this presentation the following applies: The consolidated P&L only includes the Q4 2011 results of the VNOI real estate portfolio The consolidated balance sheet at year-end 2011 includes the entire VNOI real estate portfolio The figures of NSI over the first three quarters of 2011 and the 2010 comparable figures have not been adjusted For comparison purposes, we will occasionally deviate from the above and present pro forma combined figures. In such case, this will be explicitly stated on the slide.
Balance Sheet Consolidated x € 1,000 NSI VNOI Adjust- Combined Combined 30-09-11 30-09-11 ments 30-09-11 31-12-11 Total fixed assets 1,363,083 946,869 29,545 2,339,497 2,334,212 Total current assets 16,278 16,494 - 3,816 28,956 18,356 Total assets 1,379,361 963,363 25,729 2,368,453 2,352,568 Total shareholders equity 550,210 367,902* 22,569 940,681* 909,620* Total long-term liabilities 616,408 477,717 465 1,094,590 1,186,623 Total current liabilities 212,743 117,744 2,695 333,182 256,325 Total equity and 1,379,361 963,363 25,729 2,368,453 2,352,568 liabilities IFRS 12.71 13.41 13.47 12.96 EPRA 13.58 14.50 14.43 14.02 Equity value VNOI 262,641 Consideration 194,480 transferred Result from bargain 68,161 purchase * including minority share
Indirect Investment Result Consolidated x € 1,000 2011 2010 Revaluation of real estate investments - 37,753 - 24,761 Revaluation of other investments - 2,433 1,283 Net result on sales of investments 835 - 247 Movements in market value of financial - 13,608 328 derivatives Exchange-rate differences - 106 - 905 Allocated management costs - 1,592 - 1,303 Merger costs - 8,141 - 1,283 Result from bargain purchase 68,161 - Indirect investment result before tax 5,363 - 26,888 Corporate income tax - 722 - 426 Indirect result after tax 4,641 - 27,314 Indirect result attributable to minority 2,034 - interests Indirect investment result 6,675 - 27,314
Portfolio Bridge x € 1,000 2.450.000 2,316,763 14,994 - 33,238 - 3,571 3,365 -4,528 - 944 2.200.000 9,333 1.950.000 970,663 1.700.000 1.450.000 1,360,689 1.200.000
Direct Investment Result Consolidated ∆ in € 2011 per avg 2010 per avg x € 1,000 x € 1,000 share 2011 vs. share x € 1 x € 1 2010 Gross rental income 119,964 2.55 16,794 103,170 2.48 Service costs not recharged - 2,751 - 0.06 - 1,013 - 1,738 - 0.04 Operating costs - 15,716 - 0.33 - 2,969 - 12,747 - 0.31 Net rental income 101,497 2.16 12,812 88,685 2.13 Financing income 1,226 0.02 1,120 106 - Financing expenses - 39,740 - 0.84 - 6,797 - 32,943 - 0.79 Administrative costs - 4,180 - 0.09 - 834 - 3,346 - 0.08 Direct investment result before 58,803 1.25 6,301 52,502 1.26 tax Corporate income tax - 165 - - 61 - 104 - Direct investment result after 58,638 1.25 6,240 52,398 1.26 tax Non-controlling interest - 2,608 - 0.06 - 2,608 - - Direct investment result 56,030 1.19 3,632 52,398 1.26
Direct Investment Result Per Quarter, Consolidated x € 1,000 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Gross rental income 42,575 25,695 25,823 25,871 Service costs not recharged - 1,469 - 467 - 408 - 407 Operating costs - 4,902 - 3,515 - 3,750 - 3,549 Net rental income 36,204 21,713 21,665 21,915 Administrative costs - 1,819 - 713 - 649 - 999 Interest - 14,776 - 8,192 - 7,475 - 8,071 Direct investment result before tax 19,609 12,808 13,541 12,845 Corporate income tax - 113 18 - 51 - 19 Direct investment result 19,496 12,826 13,490 12,826 Ex minority share 16,888 12,826 13,490 12,826
Direct Investment Result Zooming in on Q3 and Q4 (incl. pro forma combined Q3 2011 numbers for comparison purposes) x € 1,000 Q4 2011 Q3 2011 Q4 2011 Q3 2011 Q4 2011 Q3 2011 NSI + VNOI NSI + VNOI NSI NSI VNOI VNOI Gross rental income 42,575 44,911 25,115 25,695 17,460 19,216 Service costs not - 1,469 - 913 - 742 - 467 - 727 - 446 recharged Operating costs - 4,902 - 5,437 - 3,895 - 3,515 - 1,007 - 1,922 Net rental income 36,204 38,561 20,478 21,713 15,726 16,848 Administrative costs - 1,819 - 1,944 - 1,050 - 713 - 769 - 1,231 Interest - 14,776 - 15,639 - 8,247 - 8,192 - 6,529 - 7,447 Direct investment result 19,609 20,978 11,181 12,808 8,428 8,170 before tax Corporate income tax - 113 - 143 - 39 18 - 74 - 161 Direct result 19,496 20,835 11,142 12,826 8,354 8,009 Ex minority share 16,888 5,746
Gross Rental Income Bridge x € 1,000 130000 120000 - 50 3,196 - 3,361 110000 17,460 100000 119,964 90000 103,170 80000 70000
Financial ratios Consolidated x € 1,000 FY 2011 FY 2010 Investments 2,321,813 1,358,097 Shareholders’ equity 909,620 579,933 Shareholders’ equity NSI 781,217 579,933 Debts to credit institutions 1,326,166 744,188 (excluding derivatives) FY 2011 FY 2010 Loan to value (%) 57.2 54.8 Average interest rate (%) 4.2 4.4 Average maturity loans (years) 2.1 2.0 Fixed interest loans (%) 91.3 93.9 Interest coverage ratio 2.4 2.7 € 12.96 € 13.44 NAV € 14.02 € 14.11 EPRA NAV
Loan Duration x € 1,000 501000 451000 401000 351000 301000 251000 201000 151000 101000 51000 1000 2012 2013 2014 2015 2016 2017 2019 2022 Refinancing 2012 2/3rds covered NL: Over € 100 mln refinanced since merger date Be: € 130 mln refinanced in 2012, first expiry = € 10 mln end of 2013 Negotiation to extend € 150 mln NSI syndicated loan to 2015
Loan book & Hedging per country 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 Netherlands Belgium Switzerland Fixed Float Total Hedged % Fixed Maturity Interest % NL 128.1 765.2 893.2 746.6 97.9% 1.7 4.4% CHF 80.9 - 80.9 - 100% 1.4 3.3% BE 74.3 211.3 285.7 120,0 68.0% 3.2 3.9% Total 283.3 976.5 1,259.8 866.6 91.3% 2.1 4.2% Hedge portfolio of swaps: No overhedged positions Maturity in the Netherlands to be extended
Strategy & Markets Mechelen Campus 60,768 m² Tenants: Borealis Polymers, Cochlear, Endemol, Haskoning Belgium
Loan To Value LTV 60 57,2 57,2 56,9* 56 54,9 54,8 54,4 55 52,2 50 49,7 50 46,9 45 40 2004 2005 2006 2007 2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 04 2011 * Joint books, excluding merger effects Direct result and Dividend 56,030 52,398 51,627 50,037 48,510 47,810 46,635 45,327 1.40 1.36 1.36 1.36 1.34 1.34 1.26 1.19 2004 2005 2006 2007 2008 2009 2010 up to 2011 Dividend Direct result
Portfolio 2011 2010 4% 1% 1% 13% Offices Offices 47% Retail Retail 29% Industrials Industrials 57% 48% Residential Residential 2011 2010 5% 9% Netherlands 26% Netherlands Belgium Switzerland Switzerland 69% 91%
Revaluation results Netherlands, Switzerland and Belgium Netherlands 2011 Q4 Q3 Q2 Q1 2011 2010 2009 2008 (x € 1,000) 2011 2011 2011 Offices - 31,400 - 10,278 - 5,667 - 8,795 - 6,660 - 21,435 - 37,875 - 44,871 Retail - 622 - 3,525 317 925 1,661 - 1,179 - 7,920 7,770 Industrial - 1,351 - 1,071 - 265 135 - 150 - 2,416 - 5,504 - 4,367 Residential 135 -65 - 10 20 60 - 1,747 44 - 248 Total - 33,238 - 14,809 - 5,625 - 7,715 - 5,089 - 26,777 - 51,255 - 41,716 Switzerland 2011 Q4 (x € 1,000) 2011 9 Net yields at 31 December Offices 208 - 263 8,4 8,2 8,2 8,2 8,1 8,1 8,1 8,0 Retail - 1,152 - 762 8 offices Total - 944 - 499 7 retail 6,4 6,3 6,3 6,3 6,3 6,3 6,2 6,2 Belgium 2011 Q4 2011 6 (x € 1,000) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2010 2010 2011 2011 2011 2011 Offices 2,556 2,556 Industrials - 6,126 - 6,126 Total - 3,571 - 3,571
Portfolio Rent Development Average contractual rent/m² (NL) 200,00 Incline is one-off effect 170,00 Retail 140,00 Offices 110,00 2002 2003 2004 2005 2006 2007 2008 2009 2010 Q1 Q2 Q3 Q4 2011 2011 2011 2011 • Market rents have bottomed out
Vacancy in portfolio (%) 30,0 25,5 25,0 22,8 21,1 21,1 21,1 20,9 18,2 20,0 18,7 Retail 14,7 17,5 16,9 14,7 16,9 14,1 Offices NSI 13,1 15,0 15,2 11,9 12,8 Large-scale retail 15,3 11,7 13,9 13,0 VNOI NL 10,0 VNOI B 5,7 5,0 5,2 4,5 5,0 3,9 3,5 3,9 4,3 5,4 5,0 3,5 3,0 2,4 2,3 4,1 2,3 1,1 2,4 1,0 1,7 1,1 1,0 0,0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011
Vacancy in the portfolio (in %) Offices, NL Total portfolio Q3 2011 Q4 2011 Q3 2011 Q4 2011 27,3 20,8 22,7 21,7 15,9 15,6 16,9 11,0
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