TRASTOR REIC IC Co Corp rporate Prese sentatio ion October 2019 1
Table of Contents Se Section Titl itle Pag age Section A. Company Overview 03 Section B. Financial Results 16 Section C. Corporate Governance 22 Section D. Appendix 27 2
Section A Company Overview 3
Compan Co any Over erview At a Gl Glance # 58 58 € 190 mn mn Busin Bu ines ess Over erview Properties Investment Value (1) Trastor REIC is the first real estate investment company to be established in Greece under law 2778/99 and it is listed on the Athens Stock Exchange € 12 12 mn 6.3 .3 % The Company invests in high quality and high yielding assets with creditworthy mn tenants and through active asset management delivers attractive returns to its Annualized Rental Annualized shareholders Income (2) GRY (2) Experienced and qualified management team with deep understanding of the local market, proven sourcing, execution, and value creation track record 95.5 % 95.5 4.9 .9 ye years The Company maintains high corporate governance standards: international BoD, clear risk, internal audit and compliance frameworks, effective control functions, Occupancy by WALT strong oversight from the BOD and its Committees area Strategy St Sharehold lders Trastor REIC is seeking to capitalize on the unique investment opportunities in the Greek real estate Wert Red S.a.r.l market created by the macro-economic environment, liquidity constraints, and the ensuing deleveraging of 39.4% the Greek banking sector Piraeus Bank 56.0% Free Float Trastor ai aims to o de deliv liver sup superio ior shar shareholder 4.6% 4. 6% re retu turns and and be become the leading REI REIC in n Gr Greece 4 (1) Based on FV as of 30.06.2019 and additional acquisitions thereafter (2) Monthly rent per lease multiplied by 12; assuming 95.5% occupancy
Compan Co any Over erview Str Strategi gic Pilla lars ✓ We create investment opportunities by applying our local knowledge and tapping into our extensive banking and business partner relationships to originate deals ✓ We look to unlock value by identifying undervalued prime properties, situations involving auctions, restructuring of CRE NPLs, and managing complex transactions through which we can deliver significant upside to our investors ✓ We expect faster resolution of non-performing loans backed by commercial real estate and sale of banks’ non-core assets ✓ The next few year present an attractive opportunity to invest in Greek real estate which has suffered significant decline in value So Sour urces Investment Focus ocus As Asset Cl Classes - Leveraging the team’s local Class A and B+ Office - - Acquire core and value-added assets knowledge at attractive valuations High Street Retail - - Utilising relationships to originate - Working with credible and reputable Banks Offices & Branches - deals tenants to support their current Logistics - - Auctions and foreclosures business and expansion plans Hotels in established destinations - - Consensual surrenders and debt-for- - Repositioning of real estate assets to asset swaps in collaboration with optimize value creditor banks - Driving operational and scale - Cooperation with NPL service efficiencies to increase cash flow platforms - Building a balanced and diversified portfolio 5
Co Compan any Over erview Investment Str Strategy ✓ Prime locations ✓ Strong shareholder ✓ Significant track record commitment ✓ Differentiated assets’ ✓ Gross asset value has portfolio ✓ Secured financing tripled since 2016 ✓ High profile tenant mix ✓ Balanced capital ✓ High yields structure ✓ Wide professional network Cred edibl ble - Growing - Attractive 6
Compan Co any Over erview Key Mi Milestones Pasa asal Devel elop opment nt, a PB’s shareholding Värde Partners Tras astor or compl plet eted ed Foun unded ed by Piraeu aeus Tras astor or compl plet eted ed Tras astor or enhan hanced d Greek Real Estate increa eases es to 91.67% 67% acqu quired ed a 33.8% of a Right ghts Issu ssue e Bank nk (“PB”) under a Right ghts Issu ssue e in its s portfol olio o with kground firm, assumes the through a debt to the Company from raising €20.2mn the name “Piraeus August raising 13 new management of equity swap and PB and Värde REIC” and in 2003 03 €22.8mn acquisitions Trastor following a Partners’ stake wa was s gr grant nted d a license Backg mandatory public increased to to operate as a REIC Tras astor or anno noun unced d l Ba offer (Sept 2015). 56.0%. Värde by Hellenic Capital a fund nd raise se of rical The Bank assumed Market Commission. assumed control €72.6mn in the management of Histori In 2005 05 became the Octob ober er the company first REIC to be list sted ed Hi on Athens Stock Exchange 2008 20 08 - 2014 2014 201 2018 2015 2015 2016 2016 2017 2017 2019 201 19 1999 99 - 2008 2008 163 63.6 Rationalization of Investment Values and positioning the Company for sustainable growth 46.4 ues 113. 3.3 Investment Value 33.7 79. 9.5 (€’mn) 19. 19.9 113.3 79. 79.6 74.8 63.1 60.1 60. 59.6 59. 2017 2017 2018 201 2016 2016 2014 2014 2015 2015 H1 201 H1 2019 Investment Values on prior year’s asset base (1) Asset Acquisitions 7 (1) Valuation by the independent statutory valuer as of 31 December of each year and announced deals for H1 2019
Compan Co any Over erview Landmark Pr Prop opertie ies th Au 25 th 94, Va Vassilisis Sof ofias Av Av., At Athens 25 Augo goustou, , He Herakleion, Cret rete GAV: 18,069,000 GAV: 2,288,000 Anchor tenant: Piraeus Bank Anchor tenant: Piraeus Bank Prime location close to the city’s Listed office building situated in CBD, where many business Heraklion, the main city and activities are concentrated business centre of Crete 64 64, Tsimiski str, The hessaloniki Fillelinon & & Othonos, Ath Athens GAV: 9,520,000 GAV: 4,740,000 Anchor tenant: Inditex Group Anchor tenant: SFS Landmark self-contained retail Listed building located at the most prime and sought corner of Athens store located in the premier retail CBD high-street of the city Kro ronos B.C. C. - Ag Ag. Kon onstanti tinou, Gravi ravias & & Gran ranikou, , Maro Maroussi Ma Maroussi GAV: 12,205,000 GAV: 7,643,000 Anchor tenant: ENEL GREEN POWER Anchor tenant: P&G Grade A office building complex Multi-storey Business center located in one of the most established building, situated in an area office markets characterized by various office complexes 8
Compan Co any Over erview Hi High gh Qua Qualit ity CR CRE As Assets Pre resen ence of of HQ HQ quality ty Urb rban re reta tail sto tore res at at th the bes est commerc rcial locati tions Prime office port rtfolio single tenant buildings with esta tablished ed, affluent catc tchmen ent area eas Marousi Office Building Mesogeion Ave. Office Building NRG Head Offices, Marousi Piraeus Bank HQs, Athens PWC Offices, Chalandri Ermou, Athens Kosmopolis Centre, Komotini Voukourestiou, Athens Alimou Retail, Alimos Jewelry store, CBD 9
Co Compan any Over erview Investment Out Outlo look 10 10Y Y Greek k Government Bon ond vs German Gov overnment t Bon ond Gros oss CRE RE Rental Yield lds Evolu lutio ion Office nts % point Spread Bund 39 39 Retail 13.0% The 10Y GGB % 35 34 34 Bund Price Industrial 12.0% 10.79% tra rades s at t 1.43% 29 29 11.0% yield (200bps 9.54% 10.0% 24 24 spread vs Bund) 8.80% 8.46% 9.0% 8.16% 19 19 7.50% 8.0% 14 14 7.0% 7.27% 09 09 6.99% 6.0% 02 6.50% 04 04 5.0% -01 4.0% 3.0% 200420052006200720082009201020112012201320142015201620172018201920202021202220232024 Overvie iew of f Prim ime NO NOI Yield lds (31 31.12.2018) vs 10 10 Gov Government t Bon ond (yt ytd) 8.95% 8.35% The Retail sector in EU trades on average at 292bps above ❑ 10Y EU GB yields. Retail in Greece trades at 350bps above 6.25% 5.75% GGB 6.6% 5.30% 5.25% 5.10% 5.15% 6.1% 4.75% 4.50% The Office sector in EU trades on average at 355bps above ❑ 4.05% 4.00% 5.7% 4.8% 10Y EU GB yields. Office in Greece trades at 405bps above 5.5% 4.3% 4.0% 4.0% 3.3% 3.5% 3.5% GGB 3.3% 4.3% 3.0% 3.0% 4.2% 4.3% 2.7% 3.3% 3.3% The Industrial sector in EU trades on average at 474bps ❑ 3.0% 2.9% 2.9% 2.6% 2.5% above 10Y EU GB yields. Industrial in Greece trades at 635bps 2.0% 2.0% above GGB 1.4% 0.5% 0.2% 0.2% The 10Y GGBY decreased from 4.2% in Dec18 to 1.43% today. ❑ 0.0% -0.2% -0.3% -0.5% -0.6% In Dec2018 the spread on each sector was 1.5%, 2.4% and Germany Netherla land nds France Fr Belgium ium Irela land nd Spa pain in UK UK Por ortugal Italy ly Pol olla land nd Greece Greece No Now 4.7% respectively allowing for significant CRE yields Dec18 convergence 10-y GB Retail Office Industrial 10 Source: BNB Baribas Real Estate Research, Trastor Analysis
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