Investor Presentation November, 2009
Profile
• Independent property company, founded in 1930• “Dutch REIT” status• Property portfolio: ± € 2.5 bn• Activities in Europe and the USA• 3 activities to create value: a) active management of
shopping centers, b) smart timing of acquisitions and sales of offices and residential properties and c) project development
• ± 85 properties; average size ± EUR 30 mln• Market cap.: ± € 1.4 bn• Free float: : ± 95%• High dividend yield (± 7 %)• Pay-out ratio: 95% • Included in major indices: AEX, EPRA, GPR, MSCI
2
Strategy rebalanced
Financial objectives
• Stable growth direct result and dividend
• Pay-out ratio 85-95% direct result
• Maintaining solid balance sheet ratios; solvency between 55% - 65%
4
Strategy: value creation• Investment in and management of shopping
centres:– active management
• Investment in offices and residential complexes:– timing
• In-house project development:– cost price
5
Strategy: risk diversification
•Diversifying risk over countries and asset classes;•Selection of mature, stable, liquid and professional property
markets
6
Market approach
• Local knowledge and presence:– experienced local teams in all countries/regions
• In-house property management:– direct relations with tenants and markets
• In-house market research: – timing of acquisitions and sales is supported by
in-house market analyses
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Ambitions and plans• Stable growth of direct result and dividend by• Value creation through
– Active management of the shopping centres by in-house experts => 50-60%
– Smart timing of acquisitions and sales of office buildings and residential projects, based on in-house market analyses => 30-45%
– Project development => 5-10%
• Risk diversification by– Spread of assets over 6 countries in Europe and 3 regions
in the USA and over 3 sectors
• Portfolio size per country– > EUR 400 mln; growth in the UK, France and Spain (opportunities in
other countries also pursued)– Sale of projects < EUR 20 mln
• Sector specialisation per country/region– Sale of industrial/logistic properties over time
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Financials
2009 Q3 in a nutshell• Direct result: EUR 85.8 mln (+ 6 %)• Direct result per share: EUR 3.82 (+ 5 %)• Loss: EUR 106.5 mln • Loss per share: EUR 5.20 • Net Asset value: EUR 73.20 (- 13 %)• Real Estate portfolio: EUR 2,412 mln (-9%)• Equity: EUR 1,672 mln (- 10 %)• Negative revaluation: 8.3 %• EUR 4.65 of dividend paid (or stock option)• Solvency unchanged at 69%• San Antonio development continues as planned• Succesful lettings achieved in Paris and Washington DC
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Profit (x € 1 mln) 9 m
2009 9 m 2008 2008
Direct result 85.8 80.9 109.4
Indirect result - 192.3 - 15.6 -100.6
Profit - 106.5 65.3 8.8
Minority interest - 3.0 - 6.4 - 8.3
Profit for shareholders - 109.5 58.9 0.5
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Direct result (x € 1 mln)9 m 2009 9 m 2008 2008
Gross rental income 124.6 122.7 168.3
Other income 2.7 2.4 3.4
Operating costs - 16.5 - 13.1 - 19.7
Interest costs - 10.8 - 16.9 - 23.6
Other financial - 1.3 - 1.3 - 1.7
General costs - 11.3 - 10.8 - 14.5
Taxes on result - 1.6 - 2.1 - 2.8
Direct result 85.8 80.9 109.4
Minority interest - 5.3 - 5.3 - 7.1
Direct Result Shareholders 80.5 75.6 102.3
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Net rental income per country ( x € 1 mln)
9 m 2009 9 m 2008 2008
Total 108.1 109.6 148.6
Belgium 17.8 17.0 22.9
Finland 21.1 21.5 29.5
France 2.4 8.4 11.2
The Netherlands 19.1 18.4 24.2
Spain 7.4 8.1 10.4
United Kingdom 13.1 14.7 19.8
U.S.A. 27.2 21.5 30.6
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Balance sheet (x € 1 mln)
2009 Q3 2008 2007
Total assets 2,606.3 2,823.2 2,803.1
Interest bearing debt long - 568.2 - 715.6 - 535.9
Interest bearing debt short - 174.2 - 24.0 - 56.7
Deferred tax liabilities - 124.7 - 151.8 - 163.2
Other liabilities - 66.9 - 71.6 - 74.0
Equity 1,672.3 1,860.2 1,973.3
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Investments and Equity
0
500
1000
1500
2000
2500
3000
1998 1999 2000 2001 2002 2003 2004 IFRS>
2005 2006 2007 2008 2009 Q3
Investments Equity
15
Equity in % of total assets(before distribution of dividend)
404550556065707580
1998 1999 2000 2001 2002 2003 2004 IFRS>
2005 2006 2007 2008 2009 Q3
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Interest rate sensitivity 2009
• Floating rate loans 42% of debt (2008: 75% and 2009 H1: 73%)
• Average interest period-end at 3.3% (2008: year end 3.7% and 2009H 1: 2.2%)
• 0.5% change in interest rates EPS change: € 0,07 (or 1.4% of DR)
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Currency sensitivity 2009 Q3• Hedge on investments (end of period)
- USD 64% (2008: 68%) - GBP 65% (2008: 61%)
• A change of 10% on year-end exchange rates has an impact of EUR 1.57 (or 2.1%) on the NAV/Share
• On earnings: a change of 10% of average exchange rates (USD+GBP) has an impact of EUR 0.17 (or 3.5%) on the Direct Result
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Sound financial situation• Low gearing: 69 % solvency (equity / debt + equity) or 29%
Loan To Value • Solid ratio’s maintained after negative revaluation Q3• Wereldhave is in top 5 of listed European Property Cie’s with
the lowest gearing• Diversified tenant base• EUR 350 mln of committed credit facilities available
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Net asset Value / Share Price
0
20
40
60
80
100
120
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3
Net Asset Value Share price
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Direct Result and dividend per share
0
1
2
3
4
5
6
199719981999200020012002200320042005200620072008
Direct Result Dividend
Growth in % IFRS IFRS IFRS IFRS IFRS
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
DR 2.7 8.1 17.4 12.1 8.3 0.1 p.m. -1.7 -3.0 -5.1 +1.0
Dividend 0 3.4 13.2 6.5 7.3 1.1 + 1.1 +1.1 +1.1 +1.1 0
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Portfolio
Geographical distribution of investments
at 30 September 2009
16
22
7156
8
26 Belgium 16
Finland 22
France 7
Netherlands 15
Spain 6
United Kingdom 8
United States 26
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Distribution of investment properties(at 30 September 2009)
50 53 56 58 52 48 44 48 44 45 45 45
36 32 30 28 36 39 42 41 45 46 46 46
14 15 14 14 12 13 12 9 9 7 7 7
0%20%40%60%80%
100%
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3
Offices Shops Industrial Residential
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Revaluation of properties:
2009 Q3 2008 2007
- 8.3 % - 3.7% +5.1%
Belgium - 1.9 % + 1.2% 5.6%
Finland - 11.8 % + 0.9% 9.5%
France - 11.3 % -11.1% 8.2%
The Netherlands - 6.4 % - 0.5% 10.2%
Spain - 10.0 % - 4.3% 4.7%
United Kingdom - 14.2 % -22.6% -3.1%
U.S.A. - 6.7 % - 2.0% 2.0%
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Cap Rates per country, at period-end (weighted average)
2009 Q3 2008 2007
Total Portfolio 6.6 % 6.2% 5.9%
Belgium 6.2 % 6.1% 5.8%
Finland 5.9 % 5.3% 5.1%
France 6.5 % 6.0% 5.6%
The Netherlands 6.5 % 6.0% 5.9%
Spain 7.1 % 6.6% 6.1%
United Kingdom 8.5 % 7.9% 6.6%
U.S.A. 6.8 % 6.3% 6.2%
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• Yield -7.3%• Rent/Other -0.9%• Total portfolio -8.3%
Revaluation per country as per Q3 2009
-15% -10% -5% 0% 5%
BE
ES
F
UK
NL
SF
US
ALL
-2.7%
-6.7%
-8.8%
-7.5%
-9.1%
-9.2%
-6.9%
-7.3%
0.8%
-3.3%
-2.5%
-6.7%
2.8%
-2.5%
0.3%
-0.9%
BE ES F UK NL SF US ALL
YIELD -2.7% -6.7% -8.8% -7.5% -9.1% -9.2% -6.9% -7.3%
RENTS 0.8% -3.3% -2.5% -6.7% 2.8% -2.5% 0.3% -0.9%
Revaluation as per 30-9-2009:Yield effect - Rent & Oth. effect
YIELD
RENTS
TOTAL -1.9% -10.0% -11.3% -14.2% -6.4% -11.8% -6.7% -8.3%
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2009 Q3 2008 2007
Belgium 93 % 92 % 87 %
Finland 99 % 99 % 99 %
France 37 % 96 % 96 %
The Netherlands 99 % 98 % 97 %
Spain 90 % 95 % 99 %
United Kingdom 92 % 91 % 92 %
U.S.A. 91 % 93 % 92 %
Total 89.7 % 94.7 % 94.0 %
Occupancy by country
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2009 Q3 2008 2007
Offices 82 % 91 % 90 %
Retail 98 % 99 % 99 %
Industrial 99 % 97 % 95 %
Residential 88 % 92 % 92 %
Total 89.7 % 94.7 % 94.0 %
Occupancy by sector
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Development projects• Managed by Wereldhave organization;
• No 3rd party commitments
• USA, San Antonio: - Phase I: 2010 – 2011; USD 190 mln (backward scheduling 6 -12 months)- Phase II: decision based on success of phase I
• Belgium, Nivelles: - Phase I: 2011; EUR 62 mln- Phase II: 2011 – 2015; EUR 83 mln
• Belgium, Tournai: - Phase I: 2011 - 2012; EUR 20 mln- Phase II: 2011 – 2012; EUR 14 mln
• The Netherlands, Leiderdorp: - 2012 – 2014; EUR 35 mln
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Future
Future: 2009 - to let, to rebalance & to prepare ……• Priority to focus all efforts on leasing and higher occupancy rates• Successful lettings achieved in Paris and Washington• At present EUR 350 mln of committed credit facilities available• Well prepared to take advantage of opportunities in the market• Forecast Direct Result 2009: EUR 4.85 – 4.90 per share
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Future: 2010 and forwards
• First acquisitions, then divestment of assets < EUR 20 mln and industrial/logistic
• Investment opportunities especially target UK (retail), France (offices) and Spain (offices); opportunities in other countries also pursued
• Portfolio size per country to increase to > EUR 400 mln in the coming 5 years
• Completion of developments projects to contribute to results from 2011 onwards
• Value creation by active management of shopping center portfolio
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www.wereldhave.com
Development Portfolio
Belgium, Nivelles, Shopping Center & Mixed-use area
Description:Extension shopping center & Mixed-use
area
Size: Existing: 16,143 m2 (renovation
completed)Extension I: 12,000 m2 (shopping
center) 11,500 m2 (retail park)
Extension II: 12,500 m2 (multi-functional) offices, apartments &
hotel
Sustainability: Energy saving installationsUse of materials
Investment: Extension shopping center and retailpark: € 62 mln Adjacent area with offices, apartments,multifunctional and hotel: €83 mln
Planning: Retail: 2011Offices & multi-functional: 2011- 2012Apartments & hotel: 2012 - 2015
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Belgium, Nivelles, Shopping Center & Mixed-use area
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Belgium, Tournai, Shopping Center Les Bastions
Description: Extension current shopping center
Size: Existing: 14,178 m2Extension: 4,500 m2 (shopping
center)10,000 m2 (retail park)500 parkings26 apartments
Sustainability: Energy saving installationsUse of materials
Investment: € 34 mln.
Planning: Retail park phase I: 2011 – 2012Extension shopping: 2011 – 2012Retail park phase II: 2012Apartments: 2012
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USA, Texas, San Antonio (maps: Google Earth)
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USA, Texas, San Antonio, mixed-use area
Description: Mixed use area with 1,400apartments; 20,000 m2
offices;6,500 m2 retail and a 165
roomHotel; amphitheater; chapel
Size: Land: 119 acres
Sustainability: Water recycling; solar energy
Investment: Total USD 330 mln,Phase I: USD 190 mln.
Planning: Phase I: 532 apartments; 6,500 m2 retail; 20,000 m2offices; hotelCompletion: 2010 – 2011
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Vision The concept
• Luxury Living
• Human interaction
• Outdoor Living
• Convenience
• Live: 1,400 residential units; 165 rooms hotel with spa
• Work: 20,000 m² office; 6,500 m² retail & grocer
• Play: 1,000 seat amphitheatre; chapel, parks, sporting facilities, trolley / tram
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Hotel
42
Office
43
Residential
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San Antonio, progress reportUSD mln
Land: 18Investments as per 2009 Q3: 48 (design, infrastructure, roads, start of offices)
Number or m2
Completion
Market rent USD
Comments
Offices 20,000 2010 Q1 21 – 22 per sqf, net
Topping out in march; marketed
Hotel 165 rooms 2011 Q2 100 net Rev.PAR
Management contract with Gemstone; upscale hotel
Retail 6,500 2011 Q1 10 per sqf, net Grocer
Apartments
532 2011 Q1 – 2011 Q3
1.- per sqf net Mostly apartments of 800 sqf
Amenities 2011 Q3 Restaurant, amphitheater, fitness, chapel, trolley
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Unemployment rate in %, Texas, Dallas, San Antonio
(end of period; not seasonally adjusted)
0
2
4
6
8
10
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Q3
Texas Dallas San Antonio
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Source: The Economist July 11th, 2009
Texas triangle: map
4747
• Low tax burden attracts business and people • “right to work “ state; low participation in unions• Sound public finances• Local government favourable to business; benefits• Larger in area than any European Union country• Low land prices lead to cheaper housing costs for employees• Energy state: oil, coal, natural gas and wind power• University of Texas with largest single campus• Major airport Dallas-Fort Worth• Military basis (three large one’s)• Electronics industry developed from defence contracts• Banking industry in reasonable shape• Leading trading state with the “Trans-Texas Corridor” from Mexico• Many corporate headquarters as well as start-ups
Texas triangle: Economic topics
Source: The Economist , July 11th, 2009
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Dallas• Telecoms (Silicon Prairie)• Aerospace• Distribution• Banking• Dallas Fort Worth’s major international airport• AT&T
Austin• “quality of place” for living, Greenest City in the US• University of Texas• State government• High-tech cluster• Dell
San Antonio• Military bases (3 large ones)• Toyota
Texas triangle: Major cities for Wereldhave
Source: The Economist , July 11th, 2009
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S&P/Case Schiller US home price indices, Jan 1987 – Aug 2009
50
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