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ING conference Small cap Benelux conference, 17 June London
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NSI snapshot
2
Portfolio breakdown by asset value (FY 2014) Company description
Key financials
NSI is a real estate asset management company and qualifies as
fiscal investment institution under Dutch law (“Dutch REIT”)
NSI was founded in 1993 and listed in Amsterdam in 1998
NSI manages offices and retail investments in the Netherlands and
has a minority stake (15.2%) in Intervest Offices (listed in Brussels)
In 2011 NSI acquired Vast Ned Offices (VNOI)
NSI divested its Swiss portfolio in April 2013
NSI successfully completed a recapitalisation in November 2013 to
strengthen its balance sheet and to invest in asset management
FY 2014 FY 2013
Portfolio value* (€m) 1,668.2 1,808.8
Gross rental income (€m) 133,6 144.6
Net rental income (€m) 109.2 121.8
Direct investment result (€m) 48.5 46.3
Loan-to-Value (%) 48.9 45.4
Occupancy (%) 79.9 79.5
Interest cover ratio** (x) 2.6 2.1
Portfolio value and EPRA Net Initial Yield
Geographic breakdown
(100% = €1,668m)
Segment breakdown
(100% = €1,668m)
37%
63%
Belgium Netherlands
20%
26% 54%
Retail
Industrial Offices
* Including development pipeline and assets held for sale
** Based on reported year-to-date net rental income and finance expenses
*** The EPRA Net Initial yield is calculated as annualised rental income based on the cash rents passing at the balance sheet date,
less non-recoverable operating and service costs, divided by the market value of the property, increased with (estimated)
purchasers’ costs.
As per
31/12/2014 Portfolio value* (€m) EPRA NIY***
Offices NL 561,265 6.3%
Retail NL 431,075 6.0%
Industrial NL 64,388 7.5%
Belgium 611,446 6.3%
Offices 334,316
Logistics 276,510
Total 1,668,174 6.3%
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Reduced stake in IOW from 50.2% to 15,2%
3
Rationale:
Releasing capital to reinvest in the Dutch office market where NSI sees opportunities to create value
through its active management
− Asset value cycle
− No upside through active management strategy NSI: IOW autonomously well managed -
Total gross transaction proceeds of approx. €111 million will be used to pursue opportunities in the
Dutch office market, in line with NSI’s strategy.
Sold in accelerated bookbuild at fixed price of 19.50
Impact:
Deconsolidation of IOW as per 30 June 2015; remaining 15% stake will be recognized as ‘Interest’
Impact on direct result per share after Q2; approx. €0.035 per share (Q3 &Q4)
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STRATEGY IN PROGRESS 1
4
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5
Executing our asset rotation strategy
− NSI well on track in achieving its 2016 Dutch office portfolio targets:
• €24.5 million of sales transactions completed in Q1 2015, 24% above book value on average
» Sale of full non core office portfolio completed
» Continued sales of non strategic office assets
• €12.1 million of sales of Dutch properties completed in 2014
» Value add properties (12,216 sqm) optimised and sold
» 4% office space (22,705 sqm) transformed for alternative use
» Last residential units sold
− Acquisitions in logistics in Belgium of €61.6 million, now representing 48% of Belgium portfolio towards
strategic target of 60%
− Continued investments in portfolio to improve quality and add value
− Roll out HNK on schedule
Operational performance
− Occupancy total portfolio improved from 79.9% (31/12/14) to 80.6% (31/3/2015)
− Strong take up in offices, even stronger in HNK
• Take up /suppy ratio was 21% compared with 17% market average, 36% in HNK
Refinancing facility of €550 million fundament for new funding strategy
− Diversification
− Extended maturities
− Lowering funding costs
Strategy in progress
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6
NSI’s clear portfolio vision and strategy
Asset management
Client focus
Investment
Asset rotation
Maximise total return
Segmentation
Improve portfolio quality
Core
Value-add
Non-core
Improve operational performance
Optimise performance or sell
Keep or sell
Reduce
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Progressing towards 2016 targets – Dutch offices - well on track -
3%
56% 48%
30%
41% 52%
70%
1-1-2014 1-1-2015 Target 2016
7
Financial
Occupancy
# HNK
72.1%
3
>80%
20
71.2%
7
Value add
properties < €5m
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Strategic choices combined with business intelligence
determine focus
8
# companies 10 -50 employees # self employed persons
Focus on office properties
> 4,000 sqm
Multi tenant
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OPERATIONAL 2
9
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Offices NL
Strong take up in Q1 2015; 9,090 sqm significantly higher compared with Q4 2014 (3,216 sqm) and Q1
2014 (5,131 sqm)
Trend continuing in Q2 2015
Take up/supply ratio of 21% in Q1 compared with market average of 17%.
Stable occupancy rate (71.4% as per 31 March 2015)
Effective rent level new leases was €130 per sqm in Q1 2015 (€125 per sqm over last 12 months)
Retail NL
Stable occupancy rate (88.2% as per 31 March 2015, 88.4% as per 31 December 2014)
Effective rent level new leases of €175 per sqm versus €180 per sqm in total retail portfolio
Like-for-like growth of 3.1%
Belgium
Occupancy rate improved in both segments to 86.7% for total portfolio (31 December 2014: 86.0%)
Acquisition of logistic site in Herstal brings share of logistics in total portfolio to 48%, progressing
towards target of 60%
Q1 2015 highlights
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11
Offices NL HNK Retail
Q1 2015 Q4 2014 Q1 2015 Q4 2014 Q1 2015 Q4 2014
Occupancy 71.4% 71.5% 57.5% 56.6% 88.2% 88.4%
Take-up
take up/ supply rate
9,000 sqm
21%
3,200 sqm
13%
4,200 sqm
36%
1,800 sqm
26%
831 sqm 2,500 sqm
Leases started (sqm)/
renewed (sqm)
19,913 /
53,277
37,750/
57,509
6,500/
2,000
500/
320
16,155/
47,715
7,500/
35,916
Retention rate 53% 47% 84% 76% 75% 78%
Rent
New leases / portfolio
(*(12 months rolling)
€125*/ €146
€128*/ €146
€175/ €167
€196/ €163
€178/ €180
€193/ €182
GRI €12.4 mio €13.4 mio €1.7 mio €1.6 mio €7.1 mio €6.6 mio
WALL 3.8 years 3.8 years 2.5 years 2.5 years 4.6 years 4.5 years
Significant
developments
Sale of non core portfolio
improved the overall quality and
contributed to high take up/
supply ratio
Roll out progressing: HNK Den
Bosch opened in April and HNK
Ede in June
Numerous large transactions:
success Tailor made office
proposition
Like-for like growth of 3,1%, driven
by redevelopments completed in
2014
Operational performance
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Offices: HNK roll out according to plan
12
sqm Occupancy
HNK Rotterdam 18,000 60%
HNK Amsterdam 10,000 82%
HNK Utrecht 3,000 71%
HNK The Hague 15,000 39%
HNK Hoofddorp 3,500 71%
HNK Groningen 3,500 62%
HNK Apeldoorn 14,000 39%
HNK Den Bosch 3,500 30%
HNK Ede 10,000
HNK Utrecht 9,000
89,500 58%
HNK Ede: opened
11 June
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14
Like for like growth 29.7% in Q1 2015 (33.7% in 2014)
Take up/ supply ratio (36%) two times market average (17%) in Q1 2015
Leases signed at €175 per sqm in Q1 2015 (€ 188 per sqm in 2014)
Demand driven development:
HNK’s under construction all partially pre-let
Success rate in converting interest into contract 3 times higher than in
traditional portfolio
The gross rental income from HNK amounted to €1.7 in Q1 2015 (FY 2014:
€5.4 million in 2014)
Track record
HNK is
stacking up
Office - HNK
(€ million) 2013 2014 2015 YTD 2016
target
Investment 3.7 5.1 1,7 13.4 31.0
GRI 1.5 5.4 1.7 (1 quarter)
6.5
# HNK’s 3 4 1 8 20
% portfolio
(sqm)
3% 12% 13% 25%
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15
Retail focus - market view
15
Convenience Experience
Changing consumer behavior
− ‘multi-channel’ & ‘omni-channel’
• Off-line and online retail intermingle in an enhanced consumer
focus/targeting
Locations – the gap is widening
− Internet in combination with long-lasting sales declines increased market
vacancy
− Search for relevance and distinctiveness
− Retailers need to restructure location and branding strategies
Experience versus convenience
− Retail market is tending to two extremes:
• Entertainment, hospitality & fun for a full day out > experience
• Efficient and functional > convenience
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16
16
The ‘convenience’ centre
− Tenant base perfectly fits the ‘convenience’ consumer
• strong mix of food, personal care and other daily goods
• Complete range of product offering for daily needs
• Mix of local entrepeneurs/ national brands (55%/45%)
NSI’s capabilities: strongly geared towards ‘convenience’ shopping centers’
− Require active management
− Adding value through services and facilities:
− Local entrepreneurs require support beyond the physical store
Focus on convenience means:
− Full focus on local neighbourhood retail centres
• Result in shift in portfolio segmentation
• Redefine non core:
» Large Scale retail
» Shared ownership
• Asset rotation function of redefined segmentation
Requires the next step in active management and adding value
• Consumer focus
• On-line strategy defined in 2014 > Start pilot in Q1 2015
NSI’s Retail positioning - Convenience
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Redefined 2016 targets Retail
17
8% 6%
50% 49% 46%
42% 43% 46%
1-1-2014 1-1-2015 Target 2016
8% 8% 19%
50% 36%
30%
42% 44%
70%
1-1-2014 1-1-2015 Target 2016
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Belgium
Strategy aimed at growing logistics to 60% of total portfolio
− The logistics portfolio grew to 48% following the acquisitions along the Antwerp-Limburg-Liege axis:
• a logistics site in Opglabbeek of 77,000 sqm for €33 million
• a logistics site in Liege of 52,000 sm for €28.6 million
− Disposal of non strategic semi industrial property in Meer for €2 million
− Intervest Offices & warehouses is 2nd player in the Belgian Logistics market
Active management strategy in offices enhanced with new concepts:
− Re/Flex; a flexible business hub to anticipate the need for flexible and high-tech office, conference and event
space.
− Turn-key solutions: providing tenants advice and implementation on the design of their office
Occupancy rate in the Belgian portfolio improved slightly to 86.7% (86.0% at year end 2014)
− logistics portfolio improved from 91.2% to 91.7%
− office portfolio improved from 82.7% to 83.1%.
− The leasing activities involved primarily renewals in both portfolios in Q1 2015
Refinancing for the 2015 financial year fully completed
− 2 bonds for a total amount of €60 million were placed successfully in April 2014; will replace the current outstanding
bond of 75 million with a coupon of 5.1% on 29 June 2015
New shares for an amount of €26 million were issued in December 2014 in relation to the acquisition of the logistical
site in Opglabbeek.
18
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FINANCIAL 3
19
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Existing syndicated facilities and bilateral facilities
restructured into one large pooled facility containing a
EUPP, a Term Loan, and two RCFs
20
50.0
55.0
70.0
185.0
215.0
703.8
25.0
103.8
Overview of Dutch credit facilities before and after refinancing (committed amounts)
Term Loan - 5 yrs
RCF B - 5 yrs
RCF A - 3 yrs
EUPP - 7 yrs
703.8
103.8
125.0
125.0
200.0
100.0
RCF B - Accordion option 50.0
Syndicated loan TL & RCFs 31 Dec 2015
Bilateral TL & WC facility 1 July 2016
Syndicated loan TLs, RCFs & WC facilities 1 July 2017
Bilateral 15 January / 15 October 2016
Bilateral 1 April / 30 September 2015
2014 H1
Bilateral – Uncommitted working capital facilities
Secured financing remaining in place
2015 Q2*
Remaining maturities
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NSI Group maturity increases from 1.9 to 4.0 years,
Dutch maturities increase to 4.7 years
21
NSI Netherlands (excl. Belgium)
NSI Group (incl. Belgium)
70435
10
6661
172185
290
2020 2019 2017 2018 2023 2016 2022 2024 2015 2021
Average maturity: 1.9yr
100% = €837m
70
104
35
280
66
131
4668
112
2020 2019 2017 2018 2023 2016 2022 2024 2015 2021
Average maturity: 4.0yr
100% = €848m
00000434
145141
200
2020 2019 2017 2018 2023 2016 2022 2024 2015 2021
Average maturity: 1.4yr
100% = €524m
00
100
0
270
4
104
192322
2020 2019 2017 2018 2023 2016 2022 2024 2015 2021
Average maturity: 4.7yr
100% = €542m
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The refinancing further improves NSI’s cost of debt
22
Average cost of debt
-17%
2015 Q2* 2013 Q4 (post
recapitalization)
4,8%
4,4%
5,3%
4,6%
2013 Q3 (pre
recapitalization)
2014 Q4
* Assuming refinancing effective as per 2015 Q2
Remarks
NSI has a relatively high Cost of Debt because of:
−Margins/contracts agreed upon before recapitalization
−Relatively high hedge position (90%) due to repayment of
35% of outstanding debt in previous years
−Expensive remaining hedge contracts (+3% on average).
Ever since the recapitalization in November 2013, NSI has
been focussed on further reducing its cost of debt
−Reduced from 5,3% to 4,6% EoY 2014
−New facility @ average margin of 2% at LTV<50%
−Following the refinancing, the average cost of debt will be
approx. 4.4% per mid Q2-15
−Expected to reduce to 4% @ start of 2016 due to
Belgium bond refinancing(30/6), maturing swaps
(Q4/15/Q1/16) and reducing margins
2015 2016 2017 2018 2019 a.b.
Maturity profile 50 92 150 55 99
Average swap % 3,04% 2,91% 2,98% 2,52% 2,88%
Interest % maturing swaps 3,54% 3,47% 3,14% 3,66%
50
92
150
55
99
0
20
40
60
80
100
120
140
160
Swap maturity calender
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Strategic financing aims well on track:
focus on flexibility and 2015-2016 refinancing
Decrease dependency of only
one source of funding
23
Funding diversification
2014-2016
Debt maturity
Refinancing risk
Covenants
Extend and maintain average
debt maturity to over 3 years
No more than 25% of loans
maturing in any single year
Aim to maintain LTV below 50%,
peak-to-trough between 40-50%,
with covenant at 60-65%
Maintain ICR > 2.0
Move to unsecured
financing
Anticipate move to unsecured in
refinancing 2015 – 2016
maturities
Reduce cost of debt
Decrease overall cost of debt
Introduction of €100 mln institutional facility
Launch of €60 mln Belgian Bonds
Banking exposure significantly reduced
Room for refinancing with other instruments
NL debt maturity extended to 4,7 yrs
NSI maturity extended to 4 yrs
Introduction of 3/5/7 year tranches
Maturity extended
Corporate LTV covenant @60%
Pricing grid incentivises lower LTV
Current LTV below 50%
ICR > 2, current 2,6
Trigger mechanism: switch to unsecured if during
2 testing periods:
LTV below 45%
ICR > 2.5
Revaluation > 0
New facility @2% average margin (-40bp)
Cost of debt to reduce
to 4.4% at signing facility
To 4% begin 2016
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Financial highlights
24
x€1,000 Q1
2015
Q4
2014
Q1
2014 FY 2014 FY 2013
Gross rental income 34,085 33,289 33,870 133,599 144,564
Net rental income 29,898 27,237 27,823 109,160 121,791
Direct investment result 13,496 11,908 12,826 48,451 46,272
Increase in net rental income largely due to
refurbishment fees of €2.5 million received
in Belgium.
The direct investment result increased as a
result of, besides the higher net rental
income, slightly lower financing costs and
administrative costs
x€1,000 31/3/15 31/12/14 30/6/14 31/12/13
Real estate investments 1,668,176 1,722,744 1,808,768
Average cost of debt (%) * 4.6 4.7 4.8
Net loan to value (%) 47.7 48.9 47.9 45.4
Average debt maturity
(years) ** 2.0 2.3 2.2
Interest cover ratio 3.0 2.6 2.6 2.1
NAV (€/share) 4.41 5.02 5.59
EPRA NAV (€/share) 4.69 5.31 5.85
*) following the effectuation of the new facility, the
average financing costs will decrease to 4.4% as at
30 June 2015 and to approx. 4.0% in 2016.
LtV: no dividend is distributed in Q1 and the Dutch
portfolio is not being appraised in Q1.
**) Following effectuation of the new facility, the
average debt maturity increases to slightly below 4.0
years
The interest cover ratio was positively influenced by
the one-off refurbishment fees in Belgium.
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CONCLUSION 4
25
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26
Economic environment is expected to improve further
Letting market will remain challenging: NSI has right strategy in place to respond to changing dynamics
Executing our asset rotation strategy
− Continued focus on selling non strategic assets
− Convenience focus will determine asset rotation activities in retail portfolio
Operational
− HNK roll out
− Active management retail ‘convenience’ to the next level: pilot online
Financing
− Lower interest costs to 4.4% when facility takes effect (Q2 2015)
Conclusion
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APPENDIX 5
27
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Dutch Office Portfolio: Overview
28
Core
Value-add
Non-core
Label Portfolio NSI
In #
42
Total
39
90
0
‘13
95
15
149 132
‘14
Occupancy rate
Financial occupancy
71.9% 77.8%
70.6%
0
‘13
69.6%
17.1%
72.1% 71.2%
‘14
Value
In € per sqm
1,230 1,503
815
0
‘13
1,013
377
1,104 988
‘14
Area
In sqm.
233,909 184,451
326,774
0
‘13
376,050
54,866
615,367 560,683
‘14
Passing rent
In €m p.y.
24.5 23.3
28.3
0
‘13
35
1
59.3 52.8
‘14
48%
Total book value ’13 = €679.2 m Total book value ’14 = €559.7 m
52%
56% 41%
3%
Bookvalue
291.1
‘14
268.6
0
559.7
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Dutch Retail Portfolio: Overview
29
Core
Value-add
Non-core
Label Portfolio NSI
In #
16
Total
33%
16
20
6
‘13
20
6
42 42
‘14
Occupancy rate in %
Financial occupancy
93.9 89.8
85.8
71.3
‘13
84.3
83.9
87.2 87.7
‘14
Value
In € per sqm
2,248 2,383
1,472
699
‘13
1,628
924
1,752 1,594
‘14
Area
In sqm.
84,249 83,681
144,174
42,058
‘13
144,714
42,058
270,453 270,481
‘14
Passing rent
In €m p.y.
14.9 14.2
16.6
2.6
‘13
17.2
3.5
34.9 34.1
‘14
41%
56%
50%
42%
8%
Core Value-add Non-core
44%
7%
49%
Total book value ’13 = €474,0 m Total book value ’14 = €431.1 m
(Including large scale retail)
Bookvalue
189.4
‘14
212.2
29.4
431.1
118
28
123
145
73
149
200
164
202
238
237
233
204
202
188
170
167
143
194
22
109
79
11
123
228
210
229
Operational performance
71.5%
30
Occupancy
GRI
Leases started/
renewed
Rent
New leases/ portfolio
€ 54.7 mio
19,913 sqm
53,277 sqm
€ 128 / € 134
Take up
take up/ supply ratio
24,000 sqm
13.3%
Offices NL Retail
72.1%
€ 57.9 mio
37,750 sqm
57,509 sqm
€ 106 / € 144
35,000 sqm
19.0%
88.4%
€ 26.7 mio
16,155 sqm
47,715` sqm
€ 169 / € 182
10,000 sqm
87.8%
€ 32.2 mio
7,500 sqm
35,916 sqm
€142 / € 183
7,000 sqm
2014 2013 2014 2013
56.6%
€ 5.4 mio
€ 188 / € 160
5,000 sqm
26%
HNK
50.7%
€ 1.5 mio
30 %
2014 2013
Significant
transactions 2014
RGD 6,000 sqm
Sita 2,800 sqm
Murata 2,000 sqm
Oxyma 1,700 sqm
Hogeschool 1,000 sqm
Primark 6,700 sqm
Dirk 1,500 sqm
Qpark
6,500 sqm
2,000 sqm
118
28
123
145
73
149
200
164
202
238
237
233
204
202
188
170
167
143
194
22
109
79
11
123
228
210
229
Assets sold
31
Action Properties sqm Sqm leased Financial
Occupancy %
Sale of non-core:
Offices
Uraniumweg 23, Amersfoort *
Hettenheuvelweg 12, Amsterdam *
Hettenheuvelweg 14, Amsterdam *
Paasheuvelweg 15, Amsterdam *
Rivium Boulevard 82-100, Capelle a/d IJssel *
Keulenstraat 6, Deventer *
Snipperlingsdijk, Deventer *
Hanzeweg 5, Gouda *
Adelbert van Scharnlaan 170-180, Maastricht *
Touwslagerstraat 17, Ridderkerk *
Volmerlaan 7, Rijswijk *
Van Houten Industriepark 23, Weesp *
Zaagmolenlaan 12, Woerden *
Engelandlaan 270-340, Zoetermeer *
6,658
2,347
2,367
1,929
1,875
3,571
1,208
5,855
3,937
1,711
5,499
1,309
1,662
2,681
0
0
546
851
285
1,579
350
0
956
0
0
273
136
1,315
0%
0%
24%
53%
34%
44%
32%
0%
31%
0%
0%
24%
9%
53%
Kobaltweg, Utrecht 10,009 737 12%
Total offices 52,619
Sale of non-core
Industrial Tijnmuiden, Amsterdam 1,883
Beemsterweg, Almere 10,926
Dukaat, Deurne 2,722
Total Industrial 15,531
Residential Zevenkampsering, Rotterdam 48 units
Total non-core 68,150
Sale of value add:
Offices Max Euwelaan, Rotterdam 1,100
Luchthavenweg, Eindhoven 1,972
Bovendonk, Roosendaal* 3,361
Villawal, Nieuwegein* 5,783
Total Value add 12,216
*) Transfer in 2015
Non core + value add
offices
> 10% office sold
Industrial
> 12.5% sold
118
28
123
145
73
149
200
164
202
238
237
233
204
202
188
170
167
143
194
22
109
79
11
123
228
210
229
2013 2014 2014
Offices Retail LSR Industrial
- € 193.4
- € 177.9
32
Revaluations Dutch portfolio Pessimistic market sentiment remained main driver in valuations; impacting market yields
Exceptionals (€21.2 mio):
Book loss non-core portfolio (€8.1 mio)
‘t Loon (€ 13,1 mio)
- € 156.7
118
28
123
145
73
149
200
164
202
238
237
233
204
202
188
170
167
143
194
22
109
79
11
123
228
210
229
- 13,6
- 7,5
- 41,6
- 19,2
2014 H2 2014
Retail LSR
Market rents retail 27%
Market rents LSR 85%
Yield shift LSR 14% Keizerslanden -€2.0 mio `
‘t Loon -€12.7 mio
Other
Yield shift retail 46%
rent reduction -€2.7
home furniture store
65%
33
Revaluations Dutch portfolio- retail
-9.3
mio
118
28
123
145
73
149
200
164
202
238
237
233
204
202
188
170
167
143
194
22
109
79
11
123
228
210
229
-54,9
2014 H1 2014 H2 2014
34
Revaluations Dutch portfolio- office
Book loss non core € 8.1 mio
Market rents 10%
Yield shift 60%
NSI new leases
Effective rent
NSI portfolio
Effective rent
Appraisers
Market rent
> € 120 € 134 € 115
Transactions NSI Lone Star/ CBRE Chalet/ Kildare
JLL-ranking 49.8% 54.1% 47.3%
Value per sqm € 998 € 1266 €1085
Under/ over rent 6.5% 18.9%
Vacancy 31% 27% 32%
-€ 122.5
Market evidence:
- €63.0 -€59.5
118
28
123
145
73
149
200
164
202
238
237
233
204
202
188
170
167
143
194
22
109
79
11
123
228
210
229
Financial highlights
35
x€1,000 FY 2014 FY 2013 HY2 2014 HY1 2014
Gross rental income 133,599 144,564 66,596 67,003
Service costs not recharged
to tenants -5,828 -4,723 -2,902 -2,926
Operating costs -18,611 -18,050 -9,388 -9,223
Net rental income 109,160 121,791 54,306 54,854
Administrative costs -7,711 -6,458 -3,934 -3,777
Financing income 176 477 53 123
Financing costs -42,391 -58,042 -21,063 -21,328
Direct investment result
before tax 59,234 57,768 29,362 29,872
Corporate income tax -111 -121 -44 -67
Direct result att. to minorities -10,672 -11,375 -5,356 -5,316
Direct investment result 48,451 46,272 23,962 24,489
Indirect investment result -185,994 -180,347 -92,507 -93,487
Total result -137,543 -134,075 -68,545 -68,998
Half of GRI reduction is due to asset sales
Half of autonomous GRI reduction is related to
only 3 properties (mainly retail)
Service Costs include 500 k in previous year´s
corrections
Related to dispersed m2 vacancy
Operational costs increase in maintenance and
letting costs/fees
Net margin @ 81,4%
Admin costs include ca. 700k exceptionals
related to VEB case, AIFMD/GVV and fiscal
restructuring
Financing costs reduced by 30% due to
recapitalization and overall reduction of finance
costs
Minorities do not yet include effects of capital
increase in the Belgium subsidiary
NSI stake in IOW per 31/12/14= 50,2%
Indirect investment result affected by
Lower revaluations than 2013, but still
substantial @183 mln (192 mln)
Negative revaluation @ -2,5 mln (+25mln) of
financial instruments due interest yield shifts
118
28
123
145
73
149
200
164
202
238
237
233
204
202
188
170
167
143
194
22
109
79
11
123
228
210
229
Balance sheet highlights
36
x€1,000 31/12/14 30/6/2014 31/12/13
Real estate investments 1,668,176 1,722,744 1,808,768
Total shareholders equity 788,302 847,790 932,915
Shareholders equity of NSI 632.112 719,272 801,159
Debt to credit institutions
(excl. derivatives) 815,483 823,139 821,854
Average cost of debt (%) 4.6 4.7 4.8
Net loan to value (%) 48.9 47.9 45.4
Average debt maturity
(years) 2.0 2.3 2.2
Fixed interest debt (%) 89,7 88,8 82.4
Interest coverage ratio 2.6 2.6 2.1
NAV (€/share) 4.41 5.02 5.59
EPRA NAV (€/share) 4.69 5.31 5.85
Real estate investments reduced by
Negative revaluation @-183 mln
Sales of assets @ -16.2 mln
Investments in assets @ 25.7 mln
Acquisitions @ 33.0 mln
Overall equity reduced by negative total result
after taxes
Debt to credit institutions sligthly reduced due to
retained earnings and stock dividend paid out
(Belgium)
Average cost of debt consistently reduced
throughout the year
Loan to value influenced by revaluations and
equity issue (26 mln) in Belgium
Average debt maturity to increase to 4yr
Interest fixation is relatively high due to large
past debt repayments and Belgium bond
issuance per April 2014
ICR stable @ 2,6
NAV influenced by revaluations
EPRA NAV contains correction for financial
instruments
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