Eurocommercial Properties · /hdglqj sruwirolr ri sulph vkrsslqj fhqwuhv &1&& ,wdoldq frxqflo ri...

$: Eurocommercial Properties · /hdglqj sruwirolr ri sulph vkrsslqj fhqwuhv &1&& ,wdoldq frxqflo ri vkrsslqj fhqwuhv 6rxufh 8uelvwdw 9lvlwru qxpehuv iru vkrsslqj fhqwuhv rqo\ h[foxglqj$
Milan Property TourApril 20, 2016

Eurocommercial: listed in Amsterdam since 1991

As at 31 December 2015

Property value€1,238m France

14No of properties

Image to be inserted

37%

Property value€1,383m Italy

12No of properties


42%

Property value€706m Sweden

9No of properties


21%

Property value€3.3bn Total

35No of properties

2Eurocommercial Milan Property Tour April, 2016

€40.49 €1.98 7.8% p.a.**25 years of European property investment

Adjusted NAV* per depositary receipt Dividend per depositary receipt Total return

3

* Adjusted NAV used from 2005 ** Source: GPR, since inception until 31/03/2016. All calculations are based on nominal total returns with reinvestment of dividends

€ 0.00

€ 5.00

€ 10.00

€ 15.00

€ 20.00

€ 25.00

€ 30.00

€ 35.00

€ 40.00

€ 45.00

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014 € 0.00

€ 0.50

€ 1.00

€ 1.50

€ 2.00

€ 2.50

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

Eurocommercial Milan Property Tour April, 2016

Attractive demographics in Northern Italy 4

* Source: OECD ** Source: Istat 2012*** Eurostat 2014 and includes Paris


105 94

274

127173 156

90

050

100150200250300

Low household debt as % of net disposable income*

497 539 472 476 465 464621

0100200300400500600

High car ownership (units per 1,000 inhabitants)**

117

148131

10889

111 107 107 99125

100

020406080

100120140160

Gross disposable household income per capita***

876

571469

France Sweden Italy

Low average retail density across Eurocommercial catchmentsEurocommercial Milan Property Tour April, 2016

*Densities: All shopping centres >5,000 GLA, retail parks >5,000 GLA and one or more boxes and other galleries/department stores >5,000 sales area

5

Eurocommercial Milan Property Tour April, 2016Italian valuation yields attractive Eurocommercial Milan Property Tour April, 2016 6

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

France Sweden Italy

4.6%

5.2%5.8%

Eurocommercial net initial yields as at 31 December 2015

12 shopping centres acquired since 1994 7

* Acquisitions costs and registration taxes deducted to reach current net valuation** Including acquisition of Fiordaliso Retail Park which was completed on 31 March 2016

and acquisition of hypermarket and gallery at I Gigli to be completed on 28 April 2016

Acquisition Purchase price

€mPurchase

yieldCurrent

net valuation€m

Currentnet initial yield

Curno, Bergamo 1994 26.8 9.8% 110.9 5.7%Carosello, Carugate, Milan 1997 72.4 9.3% 319.9 5.4%La Favorita, Mantova 1997 17.4 8.8% 45.1 6.6%Centro Leonardo, Imola 1998 14.1 7.9% 69.5 6.0%Centroluna, Sarzana 1998 10.0 7.9% 25.4 6.2%I Gigli, Florence 1999 139.2 6.3% 297.2 5.9%II Castello, Ferrara 2001 62.0 6.8% 111.5 5.9%Centro Lame, Bologna 2003 26.8 6.4% 39.3 6.3%I Portali, Modena 2009 40.0 6.4% 48.3 5.9%Cremona Po, Cremona 2011 82.5 6.8% 83.6 6.4%Fiordaliso, Milan 2015 121.0 5.6% 124.9 5.5%Collestrada, Perugia* 2015 113.8 5.8% 107.4 5.7%

Total value€1.48 billion**


Strong turnover growth across the portfolio Eurocommercial Milan Property Tour April, 2016

Like for like turnover growth for the 12 months to December 2015

8

6.5% 6.2%

9.7%

3.6%4.3%

1.5%

6.3%

2.8%

4.3% 4.9%

-0.2%

6.6%5.6%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

11.0%

Sergio OlgiatiAdministration Director

Carlo RomagnoliHead of AssetManagement

Valeria Di NisioGroup LeasingDirector

Marco GaribaldiDevelopment Coordinator

Roberto FraticelliHead of Italy

Eurocommercial Italia EurocommercialMilan Property Tour April, 2016 9

Fabrizio Da RinSenior Asset Manager

Stefano De RobertisMarketing Director

Viola ManzoniResearch

Fabrizio AquilinaSenior Asset Manager

Significant in-house expertise 10

1 shopping centre0 employeesCentre management: outsourcedLeasing: outsourcedAccounting / rent collection: outsourcedMarketing: outsourced

12 shopping centres38 employeesCentre management: EurocommercialLeasing: EurocommercialAccounting / rent collection: EurocommercialMarketing: Eurocommercial

1994 2016


Leading portfolio of prime shopping centres 11

* CNCC: Italian council of shopping centres** Source: Urbistat. Visitor numbers for shopping centres only, excluding retail parks*** Most visited shopping centre in Italy**** In the past five years

Three of the top 12 most visited Italian shopping centres**

Winner of more marketing awards than any other shopping centre owner in Italy****

GOLD ICSC SOLAL MARKETING AWARD 2015

2015

12 CNCC Awards4 ICSC SolalMarketing Awards

Name Province GLA (m2) Annual visits1 I Gigli Florence 85,845 19m***2 Fiordaliso Milan 55,655 9m3 Carosello Milan 52,845 9m4 Curno Bergamo 36,290 7m5 Il Castello Ferrara 38,460 5m6 Cremona Po Cremona 42,940 5m7 Centro Leonardo Imola 33,025 5m8 Collestrada Perugia 27,545 5m9 I Portali Modena 24,810 4m10 Centro Lame Bologna 16,610 4m11 La Favorita Mantova 32,335 3m12 Centroluna Sarzana 15,130 3m

2015 turnovers significantly outperformed CNCC national index*

+5.6% +2.8%Eurocommercial: CNCC:

SILVER ICSC SOLAL MARKETING AWARD 2014

2014


Sustainable level of OCRs has contributed to consistently low vacancies

OCR: rent plus marketing contributions, service charges and tenant property taxes as a proportion of turnover including VAT. Excluding hypermarketsVacancy: ERV of vacant units as a percentage of total ERV

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 June-12 Dec-12 Jun-13 Dec-13 June-14 Dec-14 June-15 Dec-156.0%

6.5%

7.0%

7.5%

8.0%

8.5%Vacancy OCR

OCR Vacancy


Creating the best customer experience 13

Loyalty cards

Environmentallyaware

Innovativemarketing

Free high-speedWIFI

ExcitingFood offer

Familyfriendly

Attractiveamenities

Children’splay areas


€0€20,000€40,000€60,000€80,000

€100,000

2005 2007 2009 2011 2013 2015 2017 2019

E-commerce not significantly impacting retail sales in Italy Eurocommercial Milan Property Tour April, 2016 14

Online retail sales as % of total sales* Online retail spending 2005-2020 (€ million)

Online food retail sales as % of total food sales Mobile retail sales as % of total online sales

UKFrance

ItalySweden

7.8%

2.5%

5.0%

13.9%

France Italy Sweden UK

4.6%

0.3% 0.7%

9.8%

France Italy Sweden UK6.0

% 7.0% 8.0

%

7.0%

France Italy Sweden UK

Source: Forrester 2014* Excluding automotive, gasoline, food and drink at restaurants or fast food chains, prescription drugs and consumer-to-consumer sales

Eurocommercial Milan Property Tour April, 2016€673 million of Italian loans concluded so far in calendar years 2015 and 2016 Eurocommercial Milan Property Tour April, 2016

Includes Eurocommercial’s share of JV loans* Includes loans which are being finalised in the coming days

15

2015 Total Italian portfolioLoans refinanced:€156 millionNew loans completed:€183 million

Average term:4.3 years

2016*Loans refinanced:€188 millionNew loans completed:€146 million

Nationality of lending banks to Italian portfolio

Italy 57%Netherlands 33%France 10%

2015 was a busy year for the Italian team… 16• Completion of two major acquisitions: Fiordaliso, Milan and

Collestrada, Perugia• Both properties have high turnovers per square metre and

opportunities for expansion • Agreement to acquire remaining part of I Gigli

• New retailers joined the portfolio: Victoria’s Secret, Vans, America Graffiti, Liu Jo and O bag

• External children’s play area opened at Cremona, welcoming 20,000 children every month during the summer

• Tax (Assoimmobiliare): full deductibility of interest expenses• Improvements to the SIIQ regime• Introduction of SICAF’s

• Won Gold at the ICSC Solal Marketing Awards 2015• Integration of new lease management / accounting software


…and the years ahead will be equally busy 17• New children’s areas to open at Il Castello and Centro Leonardo• Progression of extension plans for all major assets• Refurbishments of Fiordaliso and Collestrada

• Completion of acquisition of hypermarket and gallery space at I Gigli on 28 April 2016, bringing ownership to 100%

• Primark and enlarged Zara store to open at I Gigli in mid 2017• Tax (Assoimmobiliare): further improvements to the SIIQ regime

and real estate legislation


Fiordaliso: first Italian joint venture completed in October 2015 18

• Well established shopping centre, opened in 1992, with exceptional position on the Milan ring-road and main tram line from the city centre

• Anchored by Iper – one of the best hypermarket operators in Italy• Gallery turnover growth +9.7% in 2015• Excellent relationship with JV partner, Gruppo Finiper• Refurbishment and extension possibilities


Fiordaliso: planned improvements 19Eurocommercial Milan Property Tour April, 2016

Fiordaliso: extension opportunities 20Eurocommercial Milan Property Tour April, 2016

Collestrada: acquisition completed in December 2015

• Well-positioned on main road to the east of Perugia

• Acquired both gallery and hypermarket, resulting in full control of the centre

• High turnover per square metre and gallery OCR of 6.2%

• Eurocommercial has an option to acquire adjoining land for an extension


Collestrada: extension potential 22Eurocommercial Milan Property Tour April, 2016

Carosello: outstanding position on Milan ring-road Eurocommercial Milan Property Tour April, 2016 23

CaroselloIKEA

Leroy Merlin

Decathlon

Carosello: major improvements since acquisition in 1997 Eurocommercial Milan Property Tour April, 2016 24

Carosello: transformational Carrefour refurbishment 25Eurocommercial Milan Property Tour April, 2016

BEFORE AFTER

Italian performance fundamentals reflect potential for further rental growth 26Visitor numbers steadily increasing… …retail sales turnover recovering strongly… ...relettings and renewals starting to rebound

56.6

56.9

61.1

62.6

62.7

63.0

76.5

2010 2011 2012 2013 2014 2015

Centres open every

Sunday

Including acquisitions

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Dec-1

0Ma

y-11

Oct-1

1Ma

r-12

Aug-1

2Jan

-13Jun

-13No

v-13

Apr-1

4Se

p-14

Feb-1

5Jul

-15De

c-15 0.0%

2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%20.0%

Dec-1

0Ma

y-11

Oct-1

1Ma

r-12

Aug-1

2Jan

-13Jun

-13No

v-13

Apr-1

4Se

p-14

Feb-1

5Jul

-15De

c-15


10%

5.6%

Active tenant rotation 27Eurocommercial Milan Property Tour April, 2016

CAROSELLO CREMONA PO

I GIGLI IL CASTELLO

La PiadineriaFOOD & RESTAURANT

+24% +240%Rent: Turnover:

Lombardini Piadina & PesceFOOD & RESTAURANT

Claire’sFASHION ACCESSORIES


B Basic BeautyHEALTH & BEAUTY

Pull & BearFASHION

-3% +170%Rent: Turnover:

Co ImportHOME GOODS

PandoraGIFTS & JEWELLERY


ExxGIFTS & JEWELLERY

107 leases renewed or relet in calendar 2015

Retail trends in our Italian centres 28Eurocommercial Milan Property Tour April, 2016

Brand Turnover (€m) Sector # of unitsMedia World 170.7 Tele/electrical 7Apple 124.9 Tele/electrical 3Zara 56.5 Fashion 5H&M 48.2 Fashion 6Leroy Merlin 37.1 Home goods 1Oviesse 35.9 Fashion 8McDonald’s 20.7 Food/restaurants 7Footlocker 18.9 Sport 6

Tezenis 17.4 Fashion 7

Decathlon 17.2 Sport 1

Top 10 tenants by total turnoverBrand Turnover /m2(€m) SectorPandora 45,500 Gifts/jewelleryApple 40,645 Tele/electricalKaidor 37,525 Gifts/jewellerySpazio Ragazzi 25,010 ShoesO Bag 18,700 FashionCalzedonia 18,335 FashionIntimissimi 15,850 FashionGamestop 15,675 Tele/electricalTezenis 13,500 FashionKiko 13,400 Health/beauty

Top performing tenants by turnover/m2

Tenant nationalities

International 38%Italian 29%Italian with international presence

16%

Local 17%

New entrants to Italian market

PrimarkVictoria’s SecretLego StoreJD SportKFC

What’s next: Primark opening at I Gigli 29Eurocommercial Milan Property Tour April, 2016

What’s next: Primark opening at I Gigli 30Eurocommercial Milan Property Tour April, 2016

Milan property tour 31Eurocommercial Milan Property Tour April, 2016

• Italy is an attractive investment market• Strong demographics and low retail densities• First class portfolio of 12 shopping centres• Highly skilled team of people• Performance fundamentals improving• Significant pipeline potential to generate future growth

Eurocommercial Properties · /hdglqj sruwirolr ri sulph vkrsslqj fhqwuhv &1&& ,wdoldq frxqflo ri...

Documents

Transcript of Eurocommercial Properties · /hdglqj sruwirolr ri sulph vkrsslqj fhqwuhv &1&& ,wdoldq frxqflo ri...