The Czech Republic: A+/Stable Rating (Aug 2014, Fitch)

Transcription

1 September 2014

2 Standing investments: 95 assets; the portfolio consists of stand-alone supermarkets, local convenience centres, retail parks and two large shopping centres Total GLA of 355,600 m² Market value of 411.1m, representing 16.6% of the Group s standing investments EPRA Net Equivalent Yield of CZ portfolio 7.90% EPRA occupancy of CZ portfolio 96.8% Gross Rental Income of CZ portfolio 17.6m (annual GRI of 37.6m as of 31/12/2013) Operating margin of CZ porfolio 91.0% The Czech Republic: A+/Stable Rating (Aug 2014, Fitch) Strong professional team: Atrium s team in CZ consists of more than 40 professionals under the leadership of Oldrich Spurek, CEO of CZ/SK. Key senior employees in the team gained their experience during previous careers at renowned companies such as TK Development, DTZ, and Cushman & Wakefield. The management of the entire portfolio is undertaken in-house. All the company data included in this presentation as reported in the 6M 2014 results to 30 June 2014 unless explicitly stated otherwise. 2

3 Locations of Atrium Assets across the Czech Republic Atrium Flora GLA: 39,860 m 2 Futurum Brno GLA: 18,761 m 2 3

4 Improved Operating Margin Opex margin 92% 90% 88% 86% 84% 82% 80% 78% 76% 74% 91% 91% 87% 84% 81% How we achieved higher OPEX margin: Regular tendering of service providers on a portfolio basis with the aim of reducing costs Energy saving plans were implemented to optimise cost efficiency (reducing utilities costs, ventilation, heating and air conditioning costs by optimising schedules) Providing electricity to tenants via local distribution networks 4

5 Czech Republic - AERE Assets, top 20 cities Based on GLA: 30.9% of GLA is located in the Czech capital Prague, which has over 1.2m inhabitants 48% of GLA is located in large cities with a population over 200,000 (Prague, Brno and Ostrava) 4% of GLA is located in medium-sized cities with a population between 100,000 and 200,000 Based on value: 51.9% of market value is located in Prague 71% of market value is located in large cities of over 200,000 inhabitants (Prague, Brno and Ostrava) City Sum of Rental Unit Size % Population* Prague 106, % 1,257,158 Brno 37, % 371,371 Ostrava 21, % 303,609 Pardubice 17, % 90,401 Zlín 14, % 75,469 Frýdek-Místek 13, % 58,200 Staré Město 12, % 6,821 Třebíč 12, % 37,836 Tábor 10, % 35,334 Mladá Boleslav 10, % 43,939 Plzeň 9, % 168,808 Nový Jičín 7, % 24,134 Jihlava 6, % 51,154 Hradec Králové 5, % 94,318 Vestec u Prahy 5, % 2,137 Liberec 4, % 101,865 Pelhřimov 3, % 16,656 Znojmo 3, % 34,476 Karlovy Vary 3, % 51,115 Poděbrady 3, % 13,986 * Source: the Czech Central Statistical Office, data as of 2011 census 5

6 Tenant Mix based on Rental income Tenant Mix based on GLA 15% 2% 6% 7% 5% 10% Hyper or Supermarket 41% 41% Entertainment 4% 6% 4% 4% Services 4% Home 6% Restaurants 5% Specialty Goods 7% Fashion Apparel 15% Health and Beauty 6% Food 2% Non Retail 10% 10% 4% 3% 1% 4% 9% 11% 49% Hyper or Supermarket 49% Entertainment 6% 3% 6% Services 3% Home 9% Restaurants 3% Specialty Goods 4% Fashion Apparel 10% Health and Beauty 4% Food 1% Non Retail 11% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Lease Expiry based on Annualised Base Rent* 41% 19% 8% 9% 11% 8% 4% >2019 The tenant mix of Atrium s Czech portfolio is anchored by food and grocery chains, which are less sensitive to macroeconomic changes The largest tenant category in the portfolio are Hyper/ Supermarkets which generated 41% of rental income and occupied 49% of GLA during H The majority of leases expire beyond the year * Break clauses are not taken into account for this purpose

7 Tenant Name # of leases Annualised Base Rent in m*) As a % of total Type of Tenant Tenant Info 1 Ahold % 2 Exxon Mobil Corporation % 3 REWE Group % 4 DM drogerie markt % Supermarket chain operator In the Czech Republic Ahold manages the biggest chain of supermarkets with food plus basic non-food assortment. Total store count exceeds 300 units. In July 2014 Ahold bought the Czech business of the Interspar Austrian chain. Oil and Gas company The world s largest oil & gas company, refiner and marketer of petroleum products. Supermarket chain REWE Group is one of the leading trading and travel & tourism companies in Europe. In the operator Czech Republic REWE operates the chains of Billa and Penny supermarkets. Drugstore chain operator DM drogerie markt is one of the leading European drugstore operators. 5 Cinema City % Cinema operator Cinema City International is the largest operator of multiplex cinemas in CEE and Israel. 6 Pk Solvent % 7 Xerox Corporation % 8 Schwarz Group % Drugstore chain Pk Solvent operates the Drogerie TETA drugstore chain in the Czech Republic and Slovakia. operator Document management The world s leading company for business process and document management. corporation Supermarket chain A German discount and supermarket chain, which operates more than 7,200 stores operator worldwide including more than 200 stores in the Czech Republic. 9 ERSTE Group % Bank & Financial Group Erste Group is one of the largest financial services providers in CEE in terms of clients and total assets. Erste focuses on retail and SME banking. 10 Fann % Perfumes & Beauty operator The biggest Czech chain of perfume stores and beauty centres; also operates in Slovakia. Total % * based on Dec 2013 figures 7

8 Atrium Flora is located in Prague, the capital and largest city in the country. Atrium Flora is a mixed-use property with a total GLA of 39,860 m² (including retail GLA 20,736 m², and office GLA 17,812 m²), constructed in There are 743 parking spaces provided on four underground levels. 426 parking spaces are available to visitors, the other 317 spaces are for office occupiers. The shopping centre is a 4-floor fashion centre with a total GLA of 20,217 m² with a mid- to up-market tenant mix and it is anchored by an Albert supermarket (1,843 m² GLA) and a cinema (3,372 m² total GLA). Built on a sloping site, the centre has access points on each level (main street access to level 3 from Vinohradska St. and access to levels 1 and 2 from Jicinska Str.). There is also direct access from the metro station. The office premises comprise three separate towers with a total GLA of 17,661 m². Each office tower features a fully equipped lobby with a reception area. The offices are served by a total of 8 passenger lifts. The premises have standard ceiling height of m with a typical floor plan of 1,906 m² which can be divided into multiple units of min 200 m². 8

9 Location Atrium Flora is located in the Vinohrady district in Prague, at the intersection of two main streets (Vinohradska and Jicinska), around 2 km east of the historical city centre. Vinohrady is a residential area of Prague, which covers portions of Prague 2, 3, and 10. The area is considered an upscale residential neighborhood due to its historical atmosphere and proximity to the city centre; desirable among young professionals, international residents, and other more affluent residents. Palác Flóra Accessibility Atrium Flora is easily accessible by public and private transport. Trams number 5, 10, 11 and 16 along with bus lines 136, 175 stop directly in front of the property. Also metro line A has a metro stop right at the location of the shopping centre. The metro station is integrated into the centre. The shopping centre has an underground parking of 743 parking spaces with access from Jicinska Street. 9

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11 This document has been prepared by Atrium (the Company ). This document is not to be reproduced nor distributed, in whole or in part, by any person other than the Company. The Company takes no responsibility for the use of these materials by any person. The information contained in this document has not been subject to independent verification and no representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. None of the Company, its shareholders, its advisors or representatives nor any other person shall have any liability whatsoever for any loss arising from any use of this document or its contents or otherwise arising in connection with this document. This document does not constitute an offer to sell or an invitation or solicitation of an offer to subscribe for or purchase any securities, and this shall not form the basis for or be used for any such offer or invitation or other contract or engagement in any jurisdiction. This document includes statements that are, or may be deemed to be, forward looking statements. These forward looking statements can be identified by the use of forward looking terminology, including the terms believes, estimates, anticipates, expects, intends, may, will or should or, in each case their negative or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts. They appear in a number of places throughout this document and include statements regarding the intentions, beliefs or current expectations of the Company. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance. You should assume that the information appearing in this document is up to date only as of the date of this document. The business, financial condition, results of operations and prospects of the Company may change. Except as required by law, the Company does not undertake any obligation to update any forward looking statements, even though the situation of the Company may change in the future. All of the information presented in this document, and particularly the forward looking statements, are qualified by these cautionary statements. You should read this document and the documents available for inspection completely and with the understanding that actual future results of the Company may be materially different from what the Company expects. Atrium European Real Estate Limited is regulated by the Jersey Financial Services Commission. This presentation has been presented in Euros and million Euros. Certain totals and change movements are impacted by the effect of rounding.