WERELDHAVE N.V. 
Q3 2020
Trading update 23 October 2020
Trading update Q3 2020 Wereldhave N.V. | 2 |
Key items
EPRA EPS 2020 outlook raised to € 1.90 - 2.10
Q3 leasing above market rent for the third quarter in a row
Shopping center occupancy stable at 95%
Rent collection shows strong improvement with 82% for Q2 and 93% for Q3
Enhanced liquidity by extension of € 70m in revolving credit facilities
EPRA sBPR Gold Award for fifth consecutive year
Trading update Q3 2020 Wereldhave N.V. | 3 |
Message from the CEO
Over the summer period our teams have worked extremely hard to achieve progress post the COVID-19 lockdown in H1. Whilst dealing with several COVID-19 lease agreements, rent collection for Q3 also proved to be more of a challenge than usual. Having said that, our teams in The Netherlands, Belgium and France have made further significant steps in both Q2 and Q3 rent collection, with the latter now at 93% which is encouraging. Multi-brand fashion and F&B remain the segments where collection proves the hardest. In the meantime, ordinary leasing business continues, which is underpinned by a new package deal with Dutch affordable fashion retailer TerStal. In all three countries we continue to sign new leases at or above ERV, also during Q3. This has resulted in a strong third quarter with € 0.62 EPRA EPS which is twice the level recorded for Q2.
Our business continues to prove resilient driven by a strong focus on everyday life, increasing mixed-use (whilst downsizing traditional retail) and a focus on proximity. Footfall has recovered gradually since the end of lockdowns in H1, however in recent weeks, with the arrival of the new COVID-19 wave, uncertainty has increased and the footfall recovery has stalled.
With the effects of the current second wave in mind, I would like to emphasize my appreciation towards our finance teams in the Netherlands and Belgium who secured our liquidity up until and including Q3 2022. Post obtaining over € 130m of new loans during early September, our teams have secured a further € 70m of new liquidity through extension of the maturity of our Belgian revolving credit facilities. This will have a slightly decreasing impact on our average cost of debt in 2021.
Despite the fact that our liquidity preservation mode remains in place, we continue to make progress on our LifeCentral strategy. As we have mentioned earlier, increasing new uses at our locations at the expense of traditional retail is underpinned and accelerated by the current COVID-19 environment.
To support our LifeCentral strategy it is key to execute on disposals. We continue to make progress as planned with the disposal of the French business. In the Netherlands, where we mentioned some caution regarding the transaction market in H1, we see some signs that the market is recovering. We expect the disposal of our Dutch non-core assets to be executed before year-end 2021.
In the meantime, whilst revenues are falling, focus on costs is essential. By implementing strict cost-control measures we have made significant steps with regards to cost savings during the 9 month period. This reduced our direct general expenses by 23%. With strong rent collection, slightly decreasing cost of debt, new leases signed above budget and significant cost cutting we managed to lift our 2020 EPRA EPS forecast significantly to € 1.90-2.10. For that, I am grateful to our teams, who worked hard to achieve this.
Matthijs Storm - CEO
Schiphol, 23 October 2020
Trading update Q3 2020 Wereldhave N.V. | 4 |
Summary
9M 2020 | 9M 2019 | Change | |
Key financial metrics (x € 1,000) | |||
Gross rental income | 143,570 | 154,963 | -7.4% |
Net rental income | 101,666 | 128,775 | -21.1% |
Direct result | 73,051 | 97,204 | -24.8% |
Indirect result | -167,291 | -126,435 | -32.3% |
Total result | -94,241 | -29,231 | -222.4% |
Per share items (€) | |||
Direct result | 1.59 | 2.12 | -25.2% |
Indirect result | -3.78 | -3.11 | -21.5% |
Total result | -2.19 | -0.99 | -121.2% |
EPRA EPS | 1.59 | 2.12 | -25.2% |
Total return based on EPRA NAV | -2.16 | -1.02 | -111.8% |
Dividend paid | 0.63 | 1.89 | -66.7% |
30 Sep 2020 | 31 Dec 2019 | Change | |
Key financial metrics (x € 1,000) | |||
Investment property | 2,741,414 | 2,906,686 | -5.7% |
Assets held for sale | 3,200 | 9,880 | -67.6% |
Net debt | 1,250,473 | 1,314,824 | -4.9% |
Equity attributable to shareholders | 1,226,168 | 1,319,598 | -7.1% |
EPRA performance metrics (€) | |||
EPRA NRV | 33.09 | 36.07 | -8.3% |
EPRA NDV | 29.05 | 31.80 | -8.6% |
EPRA Vacancy rate | 5.6% | 5.4% | 0.2 pp |
EPRA Cost ratio 1) | 22.0% | 23.4% | -1.4% |
EPRA Net Initial Yield | 6.0% | 5.8% | 0.2 pp |
Other ratios | |||
Net LTV | 45.9% | 44.8% | 1.1 pp |
ICR | 5.7x | 6.6x | -0.9x |
IFRS NAV | 30.51 | 32.78 | -6.9% |
Number of ordinary shares in issue | 40,270,921 | 40,270,921 | 0.0% |
Number of ordinary shares for NAV | 40,191,662 | 40,255,423 | -0.2% |
Weighted avg. number of ordinary shares outstanding | 40,219,428 | 40,251,654 | -0.1% |
Shopping Centers portfolio metrics | |||
Number of assets | 30 | 31 | -3.2% |
Surface owned (x 1,000) 2) | 840 | 851 | -1.3% |
LFL NRI growth | -20.0% | -0.6% | -19.4 pp |
Occupancy rate | 94.9% | 94.8% | 0.1 pp |
Theoretical rent per sqm | 225 | 227 | -0.9% |
ERV per sqm | 214 | 215 | -0.5% |
Footfall growth | -19.3% | 1.1% | -20.4 pp |
Proportion of mixed-use (in m2) | 9.9% | 9.4% | 0.5 pp |
Customer satisfaction Benelux (NPS) | -8 | - | -8 |
- Excluding COVID-19 impact
- Excluding Emmapassage Tilburg
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Wereldhave NV published this content on 23 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2020 05:09:03 UTC
