Appendix - NSI · Bridge NSI Full Year results 2016 I A - 6 Bridge investment property – balance...

Appendix

NSI Full Year results 2016 I A - 1


Page Page

Key portfolio metrics A-3 Segment split earnings A-12

Sector split A-4 Balance sheet A-13

Geographical split A-5 Example Glass House A-14

Bridges A-6 Market Offices rents A-15

Expiries and reversion A-7 Market Offices vacancy A-16

Occupancy history A-8 Amsterdam office completions A-17

Yield A-9 Market Offices prime net yields A-18

HNK occupancy A-10 Market investment volumes A-19

Key financial metrics A-11

Appendix

Key portfolio metrics


Office

HNK

Dec-16

Retail

Other

Total

Dec-15

Total

Number of properties 108 13 41 3 165 194

Market value (€m) 618 149 382 12 1,160 1,203

Annual contracted rent (€m) 53 12 31 1 98 101

ERV (€m) 61 20 34 1 116 123

Lettable area (k sqm) 457 125 273 15 870 974

Vacancy (EPRA) 21.3% 37.1% 12.5% 16.5% 21.4% 24.3%

WAULT (years) 5.3 3.1 4.3 2.4 4.7 4.7

Average rent/sqm (€/p.a.) 156 167 137 98 149 144

EPRA net initial yield 6.0% 4.3% 6.4% 10.9% 6.0% 5.7%

Portfolio market value Year End €1.2bn

NSI Full Year results 2016 I 4

Sector split

Geographical split offices by market value (€m)

0

50

100

150

200

250

300

350

400

2013 2014 2015 2016

G4

Other Randstad

Other NL

+151%

-27%


Share G4 increasing

Bridge


Bridge investment property – balance sheet (€m)

Office HNK Retail Other Total

Market value (€m) 617.7 148.9 382.2 11.6 1,160.4

Adj asset held for sale -5.1 -382.2 -2.7 -389.9

Invest. property balance sheet 612.6 148.9 0.0 8.9 770.4

Bridge number of assets

2015 Re-class Acquisitions Disposals 2016

Office 120 -5 1 -8 108

HNK 10 4 0 -1 13

Retail 41 0 0 0 41

Other 23 1 -21 3

Total 194 0 1 -30 165

Expiries and reversion


0

5

10

15

20

25

2017 2018 2019 2020 2021 2022+ Total

Contracted rent (€m)

7.4 7.1 4.3 4.0 7.6 22.3 52.7

ERV (€m) 5.7 6.2 3.7 3.5 7.0 22.1 48.3

# Contracts 97 90 46 36 50 57 376

Reversion -22.9% -12.2% -14.7% -10.6% -7.8% -0.7% -8.3%

0

5

10

15

20

25

30

35

2017 2018 2019 2020 2021 2022+ Total


12.6 16.1 13.5 9.7 12.1 33.8 97.8

ERV (€m) 11.1 14.9 12.6 8.7 11.1 32.9 91.3

# Contracts 488 297 184 134 146 161 1,410

Reversion -11.9% -7.4% -7.3% -9.7% -8.2% -2.7% -6.7%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2017 2018 2019 2020 2021 2022+ Total


3.2 2.1 1.6 1.8 1.6 2.2 12.5

ERV (€m) 3.1 2.3 1.7 1.9 1.4 2.1 12.5

# Contracts 274 61 43 31 29 24 462

Reversion -2.8% 9.5% 3.4% 3.3% -7.4% -3.1% 0.3%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2017 2018 2019 2020 2021 2022+ Total


1.9 6.3 7.0 3.9 3.0 9.3 31.5

ERV (€m) 2.2 5.9 6.7 3.3 2.7 8.6 29.5

# Contracts 117 144 93 67 67 80 568

Reversion 51.3% -15.6% 6.0% -24.9% -18.8% -14.5% -6.3%

Total portfolio (€m) Office (€m)

HNK (€m) Retail (€m)

Occupancy history


Occupancy based on sqm

Financial occupancy1

1 Financial occupancy = ERV vacant space / Theoretical rent

2012 2013 2014 2015 2016

Offices 80.2% 79.8% 76.9% 75.3% 75.4%

HNK 51.0% 54.4% 51.6% 54.1% 58.8%

Retail 90.3% 87.4% 84.0% 84.3% 83.6%

Other 100.0% 100.0% 99.8% 99.8% 99.8%

Total 79.4% 78.7% 75.7% 75.4% 75.9%

2012 2013 2014 2015 2016

Offices 76.1% 75.8% 74.7% 76.7% 80.1%

HNK 36.7% 48.4% 60.7% 59.6% 62.5%

Retail 92.5% 87.2% 87.7% 84.4% 88.1%

Other 88.5% 87.8% 88.4% 77.1% 100.0%

Total 81.0% 79.4% 78.9% 77.3% 79.8%

Yields


EPRA Net Initial Yield Reversionary yield

Dec-2016 Dec-2015 Dec-2016 Dec-2015

Offices 6.0% 6.1% 9.9% 10.7%

HNK 4.3% 3.4% 13.1% 12.3%

Retail 6.4% 5.8% 8.8% 8.7%

Other 10.9% 7.7% 10.9% 11.7%

Total 6.0% 5.7% 10.0% 10.2%


Dec-2016 Dec-2015 Dec-2016 Dec-2015

G4 5.4% 5.3% 8.0% 8.7%

Other Randstad 7.1% 7.0% 12.0% 12.4%

Other Netherlands 7.6% 7.5% 12.3% 11.9%

Transformation 4.3% 4.5% 12.8% 12.1%

Total office 6.0% 6.1% 9.9% 10.7%


Dec-2016 Dec-2015 Dec-2016 Dec-2015

Retail 6.3% 5.6% 8.7% 9.6%

Large Scale Retail 6.8% 6.6% 9.2% 8.5%

Total retail 6.4% 5.8% 8.8% 8.7%

HNK weighted average occupancy


53.0%

71.3%

62.3%

69.7%

0

2

4

6

8

10

12

40%

45%

50%

55%

60%

65%

70%

75%

2013 2014 2015 2016

Occupancy (lhs) Number of assets (rhs)

Note: Includes HNK assets that are open for more than 12 months

Key financial metrics


Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16

LTV 45.4% 44.9% 47.8% 47.8% 48.9% 44.9% 47.8% 36.6% 43.3% 40.1% 39.1% 43.0% 44.1%

Avg. cost of debt 5.2% 5.1% 4.9% 4.8% 4.9% 4.8% 5.2% 5.2% 3.7% 3.8% 3.8% 3.4% 2.8%

Avg. debt maturity (yrs) 2.3 2.2 2.1 1.9 1.7 1.4 4.6 4.3 3.9 3.7 4.2 3.8 4.2

Net Debt (€m) 544.9 541.6 540.1 547.4 538.1 501.6 394.4 402.3 542.3 483.2 449.4 521.4 513.8

Hedging ratio 63% 64% 64% 63% 64% 65% 85% 82% 73% 85% 86% 84% 77%

Avg. swap maturity (yrs) 4.2 3.9 3.7 3.4 3.2 3.0 3.3 3.1 4.0 3.7 3.9 4.4 4.2

ICR 2.1x 2.6x 2.6x 2.6x 2.6x 2.6x 2.6x 3.1x 3.2x 2.9x 3.4x 3.5x 3.8x

Segment split and bridge


EPRA Earnings, segment split and bridge to IFRS discontinued 2016 (€k)

Continued operations Discont. operations

Office HNK Other Belgium Retail Total Discont. Adj. IFRS total

Rental income 48,906 11,827 2,393 66 31,397 94,589 -31,462 63,126

Service costs not recharged -1,682 -1,852 -84 39 -569 -4,147 529 -3,618

Operating costs -7,572 -3,441 -281 -48 -4,837 -16,179 4,886 -11,294

Net revenue from operations 39,652 6,534 2,028 57 25,991 74,262 -26,048 48,214

Administrative expenses -420 -787 -6,963 -25 -179 -8,375 204 -8,170

Net financial expenses 0 4 -20,006 63 8 -19,931 -71 -20,001

Direct result before tax 39,233 5,751 -24,941 95 25,819 45,957 -25,914 20,043

Income tax expenses 0 0 54 2,253 0 2,308 -2,253 54

Direct result after tax 39,233 5,751 -24,887 2,348 25,819 48,264 -28,167 20,097

Discontinued operations 0 0 0 565 0 565 28,167 28,732

Direct result 39,233 5,751 -24,887 2,913 25,819 48,829 0 48,829

Revaluation of real estate 2,771 -5,844 -1,742 0 -49,987 -54,802 49,987 -4,815

Elimination of rental incentives -430 -19 0 16 -94 -527 77 -449

Other Income -12 0 9 1,050 0 1,047 -1,050 -3

Net result on sales of real estate -482 -67 -5,394 1,513 0 -4,430 -1,513 -5,943

Movements in financial derivatives 0 0 1,751 0 0 1,751 0 1,751

Exchange-rate differences 0 0 7 0 0 7 0 7

Allocated management costs 0 0 -1,504 0 0 -1,504 0 -1,504

Goodwill impairment -4,022 -855 -419 0 -2,909 -8,205 2,909 -5,296

Indirect result before tax -2,175 -6,785 -7,292 2,579 -52,990 -66,662 50,411 -16,252

Corporate tax 0 0 0 0 0 0

Indirect result after tax -2,175 -6,785 -7,292 2,579 -52,990 -66,662 50,411 -16,252

Discontinued operations 0 0 -50,411 -50,411

Indirect result -2,175 -6,785 -7,292 2,579 -52,990 -66,662 0 -66,662

Resultaat 37,057 -1,033 -32,179 5,493 -27,171 -17,833 0 -17,833

Direct result 39,233 5,751 -24,887 2,913 25,819 48,829 48,829

Adjustments 0 0 -1,504 0 0 -1,504 -1,504

EPRA Earnings 39,233 5,751 -26,391 2,913 25,819 47,325 47,325

EPRA Earnings per share 0.33 0.33

Balance sheet


(€k) 31/12/2016 31/12/2015

Real estate investments 770,434 1,134,617

Assets held for sale 389,923 68,848

Other assets 4,038 62,773

Cash 2,067 22,306

Total assets 1,166,462 1,288,544

Total shareholders’ equity attributable to shareholders 604,254 660,748

Non-controlling interest - -28

Total shareholders’ equity 604,254 660,720

Interest-bearing loans 510,904 564,618

Debts to credit institutions 3,429 20

Other liabilities 47,875 63,186

Total liabilities 562,208 627,824

Total shareholders’ equity and liabilities 1,166,462 1,288,544

Value add capital recycling

• Acquired with proceeds sale industrial portfolio and

shares IOW

• Letting risk in excellent location at 11% GIY

• New 10 year lease agreed within 6 months

• 14% value increase

• 46% IRR, 1.2x Multiple

Example Glass House


130

150

170

190

210

230

2006 2008 2010 2012 2014 2016

Amsterdam

Rotterdam

The Hague

Utrecht

Offices G4 rents

Source: Jones Lang LaSalle

180

220

260

300

340

380

2006 2008 2010 2012 2014 2016

Amsterdam

Rotterdam

The Hague

Utrecht

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

2006 2008 2010 2012 2014 2016

Amsterdam

Rotterdam

The Hague

Utrecht

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

2006 2008 2010 2012 2014 2016

Amsterdam

Rotterdam

The Hague

Utrecht

Prime rents (€/sqm) Average rents (€/sqm)

Prime rental growth Average rental growth


0%

1%

2%

3%

4%

5%

6%

7%

2006 2008 2010 2012 2014 2016

Amsterdam

Rotterdam

The Hague

Utrecht

0%

1%

2%

3%

4%

5%

6%

7%

8%

2006 2008 2010 2012 2014 2016

Amsterdam

Rotterdam

The Hague

Utrecht

0%

1%

2%

3%

4%

5%

6%

7%

2006 2008 2010 2012 2014 2016

Amsterdam

Rotterdam

The Hague

Utrecht

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2006 2008 2010 2012 2014 2016

Netherlands

Amsterdam

Rotterdam

The Hague

Utrecht

Offices G4 vacancy, take-up, completions


Total vacancy (sqm) as % of total stock Total take up (sqm) as % of total stock

Grade A vacancy (sqm) as % of total stock Total completions (sqm) as % of total stock


Amsterdam office completions and vacancy


0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

20

40

60

80

100

120

140

160

2006 2008 2010 2012 2014 2016

Va

ca

nc

y ra

te %

C

om

ple

tio

ns x

1,0

00

sq

m

Completions Average completions Vacancy Vacancy Grade A

Avg. 1.2% of total stock


Offices G4 prime net yields


4.25%

5.25%

5.75%

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Amsterdam Rotterdam The Hague Utrecht


Offices G4 investment volumes


0

200

400

600

800

1,000

1,200

1,400

1,600

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Amsterdam Eindhoven Rotterdam The Hague Utrecht

+346%



For additional information please contact

NSI N.V.

Investor Relations

Dirk Jan Lucas

T +31 (0)20 763 0368

E [email protected]

Appendix - NSI · Bridge NSI Full Year results 2016 I A - 6 Bridge investment property – balance...

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