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2013 Full-year 2013 Full-year

Results Results Monday 17 February 2014 Monday 17 February 2014

2013 Half-year results

Today’s presentation

Section

1

Introduction and market overview

David Atkins, CEO

Financial results

Timon Drakesmith, CFO

Performance drivers

David Atkins, CEO

Conclusion

David Atkins, CEO

Section

2 Section

3 Section

4

2013 2013 half Full-year year results results

2

Vision

Our vision is to be the best owner-manager and developer of retail property within Europe By capitalising on our strengths we aim to provide industry-leading shareholder returns

EPS +10.5%

2013 2013 half Full-year year results results

Dividend +7.9%

LfL NRI +2.1%

NAV/share +5.7%

33

2013 highlights Best in class retail portfolio Occupancy 97.7% Leasing +2% vs ERV 7% tenant rotation rate

Active financial management WAIR reduced to 4.8% Reduction in cost ratio of 240bps Over £700m liquidity

2013 Full-year 2013 2013 half Half-year year results results results

Advancing developments Les Terrasses du Port 93% let Commenced on site at Leeds and Beauvais Planning consent at Croydon and Brent Cross

Capital recycling to enhance growth Queensgate disposal Leisure extensions on site Acquisition of Value Retail stakes, Bullring and Nancy

44

Securing retail demand in France despite cyclical weakness

Market indicators Structural attractiveness of indexation

Index 105 105

French business confidence (Source: INSEE, France)

100

100

95

95

Low personal debt levels

90

90

Business confidence steady throughout 2013

85 85

Household disposable income increased throughout 2013

Portfolio initiatives

80

80

Jul 12 €bn 34

Jan 13

Jul 13

Jan 14

Total disposable income (Source: INSEE, France)

340000

Leasing progress at Les Terrasses du Port, Marseille and Jeu de Paume, Beauvais

335000

Repositioning existing assets through extensions and refurbishments

325000

Selective acquisitions

315000

33

330000

32

320000

31

310000

Jan 08

2013 2013 half Full-year year results results

Jan 10

Jan 14

Jan 12

5

Stronger Christmas trading in the UK Morrison Tesco Sainsbury M&S Food Waitrose

Foodstores

Dunelm Maplin Dixons Halfords Topps Tiles

OOT retailers

WH Smith Mothercare Superdrug Ryman Greggs Thorntons Argos Carphone Warehouse Robert Dyas Fragrance Shop The Works Lush

Non fashion retailers

New Look Blue Inc Bon Marche JD Sports White Stuff Ted Baker Next Karen Millen Jaeger Mountain Warehouse Moss MossBross Bros Boux BouxAvenue Avenue

Fashion retailers

Debenhams M&S Gen merch House of Fraser John Lewis Liberty Selfridges

Department stores -10

Source: PMA (from company statements)

2013 2013 half Full-year year results results

-5

0

5

10

15

20

25

% p.a. like-for-like sales change, Christmas trading period 2013 vs 2012

6

Positive outlook driven by improving fundamentals

Falling UK unemployment (Source: ONS)

UK GDP growth (Source: ONS) %

%

1.0

8.5

0.8

8

0.6

7.5 7

0.4

6.5

0.2

2013 2013 half Full-year year results results

7

Oct-13

Jul-13

Apr-13

Jan-13

Oct-12

Jul-12

Apr-12

2013 - Q4

2013 - Q3

2013 - Q2

2013 - Q1

2012 - Q4

2012 - Q3

2012 - Q2

-0.2

2012 - Q1

0.0

Jan-12

6

Deep investor demand and firming yields

Shopping centre investment in Europe (Source: DTZ research) €bn

Volume LHS

20

Number of deals

Number of deals RHS

300 250

Net initial yield (Source: PMA) % 6.5

Prime shoppingcentres centres Prime Shopping

RetailWarehousing warehousing Retail

6.0

15 200 10

5.5

150 5.0 100

2013 2013 half Full-year year results results

2014

2013

4.0 2012

2013

2011

2009

2007

2005

2003

2001

0 1999

0

4.5

2011

50

2010

5

8

Combined with limited supply

Retail completions expected to remain modest (Source: PMA) Mil ft2 p.a. net 25

Shopping Centre / Unit Shop Shopping centres

20

Retail RetailWarehouse warehouses

15

10

5

2013 2013 half Full-year year results results

9

2018

2016

2014

2012

2010

2008

2006

2004

2002

2000

1998

1996

1994

1992

1990

1988

0

Increased space requirements in selected locations

International Fashion retailers multiples

Leisure and catering

Aspirational brands

Homeware and Discounters furnishings

London Regional shopping centres Out of town retail parks Prime towns Secondary towns Tertiary

2013 2013 half Full-year year results results

10

Leading to market ERV growth

Forecast UK retail ERV growth per annum (Source: PMA) % 3.0

Prime shopping centres

Retail warehouses 2.9

2.5

2.5

2.0

2.0

1.9

1.5

1.8

1.6

1.3

1.0

1.1 0.8

0.5 0.0

-0.1

-0.2

-0.5

-0.2

-0.8

-0.9 -1.0

-0.1

-1.2

-1.5

2010

2013 2013 half Full-year year results results

2011

2012

2013

2014

2015

2016

2017

11

Hammerson positioned to support multichannel retail

Reported sales do not capture the whole picture Hammerson 2013 tenants’ sales

UK

France

-0.4%

-2.7%

Click and collect sales not recorded

Adjusted sales capture underlying picture Adjusted sales

Reported store sales

Retailer 1

+1.7%

-0.7%

Retailer 2

+5.7%

+4.7%

Online purchases returned to store reduce recorded sales

Overall estimated benefit to reported sales of 1-2% increase 2013 2013 half Full-year year results results

12

Leasing ahead of both ERV and previous rents

12 months to 31 December 2013

vs ERV

vs previous rents

UK retail

+4%

+1%

France

+0%

+6%

Group

+2%

+2%

UK shopping centres

Five Guys at The Oracle, Reading

2013 2013 2013 Full-year half Half-year year results results results

UK retail parks

Homebase at Battery Retail Park, Selly Oak

French retail

Eram at Place des Halles, Strasbourg

13

Summary

Improving economic fundamentals

Growing consumer confidence

Increasing tenant demand

Limited supply pipeline

Conditions for selected ERV growth

Hammerson positioned to outperform

2013 2013 half Full-year year results results

14

Section

2

Financial results Timon Drakesmith 2013 Half-year results

Finance agenda and progress Focus area Drive top line growth

Control operating costs

Manage interest expense

Optimise capital structure

Full-year results 2013 2013 half Half-year year results results

Progress in 2013 Growth in NRI of 2.1% Marseille opening May 2014 On track to meet our £320m NRI forecast for 2015

Cost income ratio declined by 240 bps to 24.6% Operating costs reduced by 1.5% in 2013 Further actions announced today to reduce cost income ratio

WAIR falls by 20bps to 4.8% Increased % of fixed debt for protection as rates rise

Over £500m of new debt financing LTV below 40% target Well funded to support development schemes

16 16

Headline results Income statement 2013

% change

2012

Net rental income(1) (£m)

290.2

282.9

+2.1%(2)

Adjusted profit before tax(3) (£m)

168.9

152.5

+10.8%

EPRA EPS (p)

23.1

20.9

+10.5%

Final dividend (p)

10.8

10.0

+8.0%

Balance sheet 31 Dec 2013 Portfolio value (£m) EPRA NAV (pence per share) LTV (%) (1) (2) (3) (4) (5)

5,931

% change

31 Dec 2012 5,653(4)

573

542

38

36

+2.0%(5) +5.7% -

Continuing and discontinued operations On a like-for-like basis for continuing operations Continuing and discontinued operations Includes £195m for discontinued operations Underlying capital growth for total portfolio excluding Value Retail

2013half Full-year results 2013 2013 Half-year year results results

17 17

YoY change (LfL)

Solid uplifts in like-for-like NRI

Key drivers

2013 total(2)

3.2% 2.6%

2.1%(1)

0.2% UK retail parks

France retail

£82.1m

£62.7m

Union Square

Cleveland

Cergy

Brent Cross

Thanet

O’Parinor

Silverburn

2012 administrations

Indexation

UK shopping centres

£124.7m

GRI up 2.2% LfL

Total

£282.8m(3)

In line with previous guidance

(1) Includes other interests LfL of £7.2m which declined YoY by 4.0% (2) Total NRI for continuing portfolio (not LfL) (3) Continuing operations, including other interests total of £13.3m

2013 2013 2013 Full-year Half-year Half-yearresults results results

18 18

EPRA EPS vs 2012 +10.5% Net investment

LfL NRI

Value Retail

Administration Net financing costs

Exchange and other

24.0 0.2 0.6

22.5

(0.5)

0.2 23.1

0.7 1.0

21.0 20.9

2013

2012

19.5

18.0

EPRA EPS (pence)

Earnings +20% since 2011 2013 2013 2013 Full-year half Half-year year results results results

19

Cost management delivering results EPRA Cost/income ratio(1)(2) %

Operating costs(1) £m 88

29

28.3%

28

86

86.1

27.0% 27

84 26 82

80

24.6%

25

EPRA cost/income target for 2016 21-22%

24

79.8

79.8 78

23

78.6

76

22 21

74

20

2011

2012

Year2013 2013

(1) Continuing operations (2) Cost ratio is defined as: (net service charge expense + property outgoings + administration expenses – management fees receivable)/Gross rental income

2013 Full-year 2013 half year results results

20

New resource management measures

Additional investments to grow business

Efficiency improvements

Expected incremental costs - £5m p.a. from 2015

Target savings - £6m p.a. from 2016

Expanded development programme

Senior management reorganisation

-

Headcount increases

London office relocation in 2015

-

Mobilisation of project teams Share incentive plans and pension benefits

Digital marketing and multichannel

London/Paris integration Implementation costs of £5m in 2014

Resources redeployed to growth areas Expense reductions push cost income ratio down to 21-22%

2013 Full-year 2013 half year results results

21

Portfolio valuation change

FY 2013 %

H2 2013 %

H1 2013 %

Value at 31 Dec 2013 (£m)

UK shopping centres

+2.4

+1.7

+0.7

2,524

UK retail parks

+1.7

+3.2

-1.5

1,471

France retail

-0.3

+0.8

-1.1

1,240

+10.4

+6.8

+3.4

497

Other UK interests(1)

-6.5

-1.6

-5.0

199

Discontinued operations

+3.7

-1.2

+5.0

-

Total

+2.0

+2.2

-0.2

5,931

Value Retail(2)

+12.6

+6.8

+5.4

788(3)

Current developments

(1) Principally assets held for redevelopment (2) Underlying overall portfolio valuation change for Hammerson interests (3) Hammerson’s share of portfolio valuation at 31 Dec 2013

2013 Full-year Full-year results 2013 2013 half Half-year year results results results

22

EPRA NAV per share vs 2012 +5.7% Investment portfolio revaluation

590

Developments revaluation

Value Retail revaluation

Profit on disposals

Adjusted profit

Dividends

23

(18)

580 570

573 573

2 11

560

4

550

2013

530

542

2012

540

9

520

EPRA NAV per share (pence)

2013 Full-year 2013 2013 half Half-year year results results results

23

Healthy financing ratios

Financing policies

31 Dec 2013

31 Dec 2012

-

£2,252m

£2,036m

Gearing

<85%

56%

53%

Loan to value

<40%

38%

36%

Cash/undrawn facilities

-

£716m

£696m

Weighted average cost of finance

-

4.8%

5.0%

>2.0x

2.8x

2.8x

Net debt/EBITDA

<10x

8.2x

7.9x

Fixed rate debt

>50%

82%(1)

80%

Net debt

Interest cover

(1) Fixed rate debt percentage at 31 December 2013 was 70% but is shown on a pro forma basis for £275m US private placement issue arranged in November 2013

2013 2013 2013 Full-year half Half-year year results results results

24 24

Maturity profile of debt

Bank drawn debt

£m

Secured debt

Euro bonds

500

Sterling bonds

USPP(1)

Credit markets attractive

450

Weighted average coupon of 2015/2016 bonds 5.0%

400

USPP will refinance 2014 bank debt

350 300 250 200 150 100 50 0 2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

(1) Undrawn committed US private placement due to fund February and June 14

2013 2013 2013 Full-year half Half-year year results results results

25 25

2028

Forecast development expenditure £m On site developments

300

Les Terrasses du Port, Marseille 250

Victoria Gate, Leeds Jeu de Paume, Beauvais

200 Other on site developments 150

Future developments

New extensions/redevelopments 100 Whitgift, Croydon Brent Cross extension

50

0 2013

2014

2015

2016

2017

2018

Note: Croydon expenditure in 2013 and 2014 reflects property acquisitions Other on site developments: Abbotsinch Retail Park, Paisley; Cyfarthfa Retail Park, Merthyr Tydfil; Silverburn, Glasgow; O’Parinor, Paris New extensions/redevelopments: Elliott’s Field Retail Park, Rugby; Watermark WestQuay, Southampton; Brent Cross leisure extension

2013 Full-year 2013 half year results results

26

Focus on Value Retail Value Retail Villages

Future growth drivers

2013

YoY change

Brand sales

€1.9bn

+13%

Forecast 72% growth in Chinese visits to Europe by 2018(2)

EBITDA

€111m

+12%

Village remerchandising with more premium brand stores

Total portfolio value

€3.1bn

+12%

More flagship stores Extensions at Barcelona and Dublin

Hammerson share of(1) EPRA net income

£19m

+51%

EPRA net assets

£634m

+29%

Hammerson investment plans

(1) Including benefit of new investments, interest receivable and loans (2) Source: European Travel Commission

2013 Full-year 2013 half year results results

27

Section

3

Performance drivers David Atkins 2013 Half-year results

Performance drivers

Value Retail

Growth from existing portfolio

Major developments

Contribution from extensions and refurbishments

Selected examples

2013 2013 2013 Full-year half Half-year year results results results

29

Capital deployment Prime Shopping Centres

Extension and refurbishment

Premium Designer Outlets

Convenient Retail Parks

Silverburn Silverburn

Abbotsinch Retail Park

La Roca Village

Kildare Village

Development Les Terrasses du Port

Cyfarthfa Retail Park

Kildare Village

Bullring

Junction Fund

La Vallée Village

Acquisition

2013 Full-year 2013 Half-yearresults results

30

Acquisition of a further stake in Bullring

Acquired additional 33% stake in 2013 in 50/50 JV with CPPIB, taking ownership to 50% 9% total property return Recent lease renewals +10% above previous rent Continues to attract new brands

2003

2011

2013

2014

2015

Bullring opens, with 1.5 million visitors in first week

Spiceal Street opens, a 1,900m2 leisure and catering development

Bullring celebrates 10 years of trading

Explore opportunity to increase leisure offering and add a cinema

New £100 million John Lewis store opens for trade in city

2013 Full-year 2013 Half-yearresults results

31

Saint Sébastien, Nancy

% 105

£7m

99%

24,000m2

6%

shops and restaurants

annual rents

let

centre

initial yield

2013 Full-year 2013 Half-yearresults results

Development potential

32

Nearing completion at Les Terrasses du Port

Countdown to launch Opening 3 May 2014 93% pre-let and 95% construction complete £28 million annual rents £460 million total development cost 7.3% yield on cost Anchor store Printemps and MSUs have commenced fitting out of units

2013 Full-year 2013 Half-yearresults results

33

Transforming Marseille’s retail offer

190 units

1

81

22

53

43

22

30

brands new to the portfolio

catering units

fashion brands

international brands

brands taking 1st store in a French shopping centre

brands new to Marseille

Brands recently signed include

2013 Full-year 2013 Half-yearresults results

34

Construction commenced at Leeds and Beauvais Victoria Gate, Leeds

34,300m2 luxury retail venue John Lewis anchor store

23,800m2 retail and leisure venue

Out-turn financials Total development cost Annual income

28% pre-let

Jeu de Paume, Beauvais

Yield on cost

£150m £10m 6.7%

80km north west of Paris Large catchment and poor retail provision

Out-turn financials Total development cost Annual income

£5m

Yield on cost

7.1%

Completion Q3 2016 42% pre-let Completion Q3 2015

2013 2013 Half-year Full-year results results

£70m

35

Advancing the development pipeline

Silverburn, Glasgow

O’Parinor, Paris

Cyfarthfa Retail Park, Merthyr Tydfil

Abbotsinch Retail Park, Paisley

10,900m2 extension

7,200m2 extension

14,500m2 extension

5,000m2 extension

14 screen cinema

14 screen cinema

4,300m2 Marks and Spencer anchor store

5 retail units in adjacent existing retail park

84% pre-let

100% pre-let 46% pre-let

87% pre-let

Total development cost £13m

Total development cost £4m Total development cost £23m

Total development cost £9m

Completion Q1 2015

Completion Q2 2014

Yield on cost 10%

Yield on cost 13%

Completion Q1 2015

Completion Q4 2014

Yield on cost 7%

Yield on cost 5%

2013 2013 Half-year Full-year results results

36

Key milestones at Brent Cross and Croydon Brent Cross

Whitgift, Croydon

2013 Agree masterplan

2013 Brent Cross/Cricklewood phasing

Submit planning

2014 S73 approval

Establish JV

Acquire RLAM stake

Secure planning resolution

2014 Complete S106

2013 2013 2013 Full-year Half-year Half-yearresults results results

Submit leisure planning application

Secure CPO resolution

Complete S106

Conclude land assembly

Conclude anchor negotiations

Complete design

37 37

Attractive future pipeline: The Goodsyard Total development area 260,000m2

50/50

10 acre

joint venture with site in heart of Shoreditch Ballymore Properties

2013 2013 Half-year Full-year results results

£6m per acre valuation

Spring 2014 19,000m2 Planning submission

Retail space (90 shops)

60,000m2

1,400

office space

residential units

38

Additional income from developments

£56m

£63m

£m annual rents

120

90 £15m 60

£11m £30m

30

2014 2014

2015 2015

2016 2016

2017-2019 2017-2019

Notes: Annualised passing rents assuming 100% occupancy in year of project completion, post any rent free periods Assumes completion of all medium-term developments and extensions 2014 Les Terrasses du Port, O’Parinor, Abbotsinch Retail Park; 2015 Silverburn, Jeu de Paume Beauvais, Elliott’s Field Rugby, Cyfarthfa Retail Park Merthyr Tydfil 2016 Watermark WestQuay, Victoria Gate 2017-2019 Croydon, Brent Cross Leisure, Brent Cross extension

2013 2013 Full-year half Half-year year results results results 2013

39

Conclusion

2013 Half-year results

Key messages

ERV growth returning to our markets

2013 half year results

Major development activity amplifies returns

On track with previous income growth guidance

41

Conclusion

ERV growth from existing portfolio

Contribution from extensions and refurbishments

Overhead cost control Strong returns Confident outlook

Major developments

Liability management

Value Retail

2013 2013 2013 Full-year half Half-year year results results results

42 42

Questions

2013 Half-year results

Disclaimer

This presentation contains certain statements that are neither financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed in or implied by these statements. Many of these risks and uncertainties relate to factors that are beyond Hammerson’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors such as the Company’s ability to continue to obtain financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the Company operates or in economic or technological trends or conditions, including inflation and consumer confidence, on a global, regional or national basis. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Hammerson does not undertake any obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances after the date of these materials. Information contained in this presentation relating to the company or its share price, or the yield on its shares, should not be relied upon as a guide to future performance.

2013 2013 half Half-year year results results

44