INVESTOR PRESENTATION - MARCH 2018 - MAS REAL ESTATE INC.
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MAS REAL ESTATE INC.
INVESTOR PRESENTATION
MARCH 2018
1 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
INVESTOR PRESENTATION CONTENTS Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Key metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Capital management . . . . . . . . . . . . . . . . . . . . . . . 5 Income-generating portfolio . . . . . . . . . . . . . . . . 7 Developments and land bank . . . . . . . . . . . . . . 15 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 NOTICE: Information contained in the document is believed by the issuer to be accurate and correct, and statements of opinion in this document are considered by the issuer to be reasonable, in each case at the date of this document, but the issuer does not accept responsibility for any such information, and all recipients of this document are expressly reminded of the requirement to carry out their own due diligence into MAS Real Estate Inc. MAS Real Estate Inc. disclaims any obligation or undertaking to update, review or revise any forward looking statement contained in this announcement whether as a result of new information, future developments or otherwise. Recipients should make their own assessment and take independent professional advice on the merits of investment and the legal, regulatory, tax and investment consequences and risks of doing so. The issuer accordingly accepts no responsibility to any person for the consequences of any person placing reliance on the content of this document for any purpose. This document is confidential to the issuer and contains confidential information pertaining to the issuer and is sent to a limited number of persons on a confidential basis. Recipients are required to keep the document and the information contained in it confidential and not to copy or disclose it or any part of it to any other person without the consent of the issuer. Recipients should further pay particular attention to the disclaimer contained in the section ‘Disclaimer’. For further information about MAS Real Estate Inc., please visit our website www.masrei.com © MAS Real Estate Inc., 2018. All rights reserved. 2 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
HIGHLIGHTS
9% GROWING
DISTRIBUTION STRONG
PER SHARE OF BALANCE SHEET
PIPELINE
3.58
EURO CENTS
INCREASE IN EPRA
NAV PER SHARE
€387M
OF EQUITY
OF INVESTMENT
AND DEVELOPMENT
PROPOSED AVAILABLE FOR OPPORTUNITIES
INVESTMENT
3 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
KEY METRICS
DISTRIBUTION PER SHARE INVESTMENT PROPERTY PASSING RENT2
12.0 600 570.6 35
EURO CENTS
EURO MILLION
EURO MILLION
543.2 32.2 32.7
TARGET DISTRIBUTION PER SHARE1
9.89
10.0 500 30
GUIDANCE1
H2 DISTRIBUTION PER SHARE 25
8.0 7.61 400
H1 DISTRIBUTION PER SHARE 310.5
5.85 20 17.3
6.0 300 248.5
4.50 15 12.6
4.0 3.35 200
10
1.84
2.0 100 64.8 5 2.7
0.0 0 0
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18
EPRA NAV PER SHARE MEDIAN DAILY SHARE VOLUME ASSET LEVEL LOAN TO VALUE
140 250 233.5 30
THOUSANDS OF SHARES
PERCENTAGE
EURO CENTS
137.2
26 26
135
25
200
130
125.9 20
125 150 137.5
122.1 16
120 15
116.0 12
115 100 76.2
10
110 5
50 40.8
104.6 5
105
1.1
100 0 0
2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18 2014 2015 2016 2017 1H18
1
On the assumption that the acquisition and development pipeline and further opportunities being pursued will progress as expected, a stable macro-economic environment will prevail, no major corporate failures will occur, the investments and developments reported
on in the directors report will progress in accordance with expectations and budgeted rental income based on contractual escalations and market related renewals are collected.
2
MAS’ share of the income-generating portoflio’s passing rent
4 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
CAPITAL MANAGEMENT
DEBT1 L I Q U I D R E A L E STAT E EQ U I T I E S P O RT FO L I O
Percentage
4%
of total
investment
21% Klepierre SA 29.8%
Unibail – Rodamco SE 27.8%
Eurocommercial Properties NV 9.0%
Hufvudstaden AB 7.2%
€194.6 Fonciere des Regions SA 7.1%
Mercialys SA 6.5%
MILLION 75%
Land Securities Group PLC 6.3%
British Land Company PLC 6.3%
EUR 100.0%
GBP
CHF
DEBT – CURRENT PORTFOLIO Term AVA I LA B L E C A P I TA L
€ million Cost YR € million
Drawn 194.6 2.67% 7 Cash (excluding development JV) 31.12.2017 187.3
Current portfolio: Comitted, negotiated and further funding 61.4
– Committed and negotiated 23.9
CAPITAL MANAGEMENT (CONTINUED)
A L LO C AT I O N O F C A P I TA L
PKM DEVELOPMENTS
PKM DEVELOPMENTS
REAL ESTATE EQUITIES
INCOME-GENERATING
AND DEVELOPMENT PROPERTY
CASH
LAND BANK
INCOME-GENERATING DEBT
AND DEVELOPMENT PROPERTY
DEBT
31 DEC 2017 TARGET
6 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
INCOME-GENERATING PORTFOLIO 7 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
NUMBER OF
4 INCOME-GENERATING
PROPERTIES
MAS AND ASSOCIATE
OFFICES
Edinburgh Office
PASSING RENT
Isle of Man Headquarters
€14.80M1
(JUNE 2017: €14.95M)
1
Poland Office
UK 32
PASSING RENT
PASSING RENT
London Office POLAND €4.71M1
€6.34M1 GERMANY (JUNE 2017: €4.30M1)
(JUNE2017: €6.37M)
Frankfurt Office
1
PASSING RENT
SWITZERLAND
GERMANY
PASSING RENT
UK €1.15M1
(JUNE 2017: €1.19M)
Prime Kapital Office
SWITZERLAND 2
€32.711 POLAND BULGARIA
PASSING RENT
€5.72M1
MILLION BULGARIA
(JUNE 2017: €5.41M1)
PIPELINE
SECURED/UNDER EXCLUSIVITY WE
FURTHER CEE
MAS’ share of the income-generating portoflio’s passing rent
0 €50M €100M €150M €200M €250M €300M €350M €400M
1
8 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
INCOME-GENERATING PORTFOLIO – WESTERN EUROPE CAPITAL RECYCLING • Prices of various assets are high across the portfolio. • Strategic objective is to recycle capital from these assets to opportunities where there is potential to generate further value through asset management, refurbishment and re- development. • The Aldi portfolio has been fully disposed of, together with the office component of the Heppenheim property in Germany, and various of the assets at New Waverley are under consideration for disposal at very favorable yields. • Reinvesting into the strong acquisition pipeline in place. 9 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
INCOME-GENERATING PORTFOLIO – CEE
CEE RETAIL PERFORMANCE
ANNUAL
2017 GROWTH
TURNOVER
€123.7M +11.93%
FOOTFALL
12.7M +4.75%
OCCUPANCY
93.89%
10 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018INCOME-GENERATING PORTFOLIO – CEE EXTENSIONS AND RECONFIGURATIONS Significant extensions and reconfigurations are planned to consolidate the malls’ regional dominance, enhance footfall and grow net operating income. These include: • a 15,000 m2 GLA increase in the fashion and leisure offering of Galleria Burgas; • a 7,000 m2 GLA extension of Nova Park to broaden fashion, accommodate a cinema and improve leisure offering; and • a major refurbishment and reconfiguration of Galleria Stara Zagora. 11 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
INCOME-GENERATING PORTFOLIO – CEE STARA ZAGORA REFURBISHMENT - GROUND FLOOR 12 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
INCOME-GENERATING PORTFOLIO – CEE STARA ZAGORA REFURBISHMENT - FIRST FLOOR 13 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
INCOME-GENERATING PORTFOLIO – CEE STARA ZAGORA REFURBISHMENT - FOOD COURT AND ENTERTAINMENT 14 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
DEVELOPMENTS AND LAND BANK NUMBER OF DEVELOPMENTS,
7 EXTENSIONS AND LAND BANK
MAS AND ASSOCIATE
OFFICES
Edinburgh Office
Isle of Man Headquarters
1
Poland Office
UK
London Office POLAND
Frankfurt Office
PIPELINE - BY SECTOR
10% 1
16
14%
SWITZERLAND ROMANIA
RETAIL
Prime Kapital Office
RESIDENTIAL
OTHER 2
BULGARIA
PIPELINE
76% SECURED/UNDER EXCLUSIVITY WE
FURTHER CEE
0 €100M €200M €300M €400M €500M €600M €700M
15 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018PORTFOLIO – DEVELOPMENTS & EXTENSIONS
NEW WAVERLEY
PHASE I PHASE II
OFFICE
17,400m 2 19,000m 2
GLA GLA
€3.6M €23.5M
PA SS I N G R E N T LAND DISPOSAL PRICE
€76.7M 10%
B O O K VA LU E FURTHER DEVELOPMENT
MARGIN
RESIDENTIAL
13,000m 2
OFFERS BEING
PROGRESSED
16 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018VIDEO – GPU 17 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
RETAIL VALUE CENTRE DEVELOPMENTS • 11 value centres with an aggregate GLA of 126,000 m2 (up 7,000 m2 due to tenant demand). • Anchored by Carrefour or Kaufland with a high concentration of international retailers. • Strong locations with high density and convenient access. • First 4 developments (Kaufland mini-hypermarket value extensions) with an aggregate GLA of 13,500 m2 completed. • 5 additional developments with an aggregate GLA of 58,500 m2 scheduled to complete by the end of the 2018. • Land acquisition risk in relation to the development in Ploiesti removed. • Potential delay in relation to the development in Balotesti, Bucharest. 18 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
MALL DEVELOPMENTS • Suspension of works in Slovenia. • Acceleration of super regional mall development in Iasi. • Two regionally dominant mall developments secured. • Two regional mall developments secured. • Dominant developments with strong food anchors, broad fashion and substantial entertainment offerings. • Excellent accessibility and visibility. 19 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
MALL OF MOLDOVA
• 100,000 m2 GLA super-
regional mall redevelopment
in Iasi, Romania.
• The largest retail and leisure
development in Romania
outside Bucharest.
• Located near to densely
populated and rapidly
growing residential areas, on
the main road that connects
Iasi (second largest city
and third largest university
centre in Romania) to most
major cities in the wider
region.
• Catchment population
of 331,000, 450,000 and
746,000 within 15, 30
and 60-minute drives
respectively.
• Exceptionally strong retailer
interest.
• Opening planned for the end
of the 2019 calendar year.
20 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
2017MALL OF MOLDOVA 21 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
ARGES MALL
• 50,000 m2 GLA, regionally
dominant mall in Pitesti,
Romania.
• Highly visible, central
location in close
approximation to the highest
density residential area, next
to the main train station and
the city’s main boulevard
connecting Pitesti (the heart
of the national automotive
industry) with other cities in
the wider region.
• Catchment population
of 200,000, 345,000
and 637,000 within 15,
30 and 60-minute drives
respectively.
• Planned retail consolidation
facilitated by the
fragmented and poorly
located current retail offer.
22 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
2017ARGES MALL 23 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
DAMBOVITA MALL • 31,000 m2 GLA, regionally dominant mall in Targoviste, Romania. • The first mall in Dambovita county. • Planned development forms part of and is complemented by a wider urban regeneration project undertaken by the local authorities within 2 km of the city centre, in a densely populated residential area. • The regeneration project includes, inter alia, public infrastructure connecting the project to both the city centre and the ring road and a new football stadium. • Catchment population of 127,000, 259,000 and 344,000 inhabitants within 15, 30 and 60-minute drives respectively. 24 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
DAMBOVITA MALL 25 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
RESIDENTIAL DEVELOPMENTS
• Two large scale residential
developments in fast
growing residential areas
of Bucharest in close
proximity to leisure, health
and educational facilities
and with good access to
transport infrastructure.
• Advanced detailed design
and planning of Avalon
Estate, an upmarket modern
gated housing estate in
close proximity to the new
developing central business
district and commercial
centre of Bucharest.
• Zoning in progress on
Marmura Apartments, a
mid-market residential
project in the expanding
north-west of Bucharest
consisting of up to 380
residential units.
26 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
2017AVALON ESTATE • 8.1-hectare site in close proximity to the new developing central business district and commercial centre of Bucharest. • 767 high quality houses, townhouses and apartments. • Wide product offering addressing different lifestyle and life-stage requirements of target audience. • “Car free” development (visible car circulations cover only 8.5% of site) with upmarket units completely shielded from car noise and circulations. • 2.15 hectares of parks and green areas. • First units available for occupation in the second quarter of 2019 calendar year. 27 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
PORTFOLIO – RESIDENTIAL DEVELOPMENTS AVALON ESTATE T-BLOCK 28 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
PORTFOLIO – RESIDENTIAL DEVELOPMENTS AVALON ESTATE T-BLOCK 29 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
PORTFOLIO – RESIDENTIAL DEVELOPMENTS AVALON ESTATE T-BLOCK 30 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
PORTFOLIO – RESIDENTIAL DEVELOPMENTS AVALON ESTATE INDIVIDUAL HOUSES 31 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
AVALON ESTATE 32 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
OUTLOOK
MAS benefits from:
• A strong balance sheet with substantial
liquidity and low gearing; and
• A strong acquisiton and development pipeline
in western Europe as well as CEE.
MAS is well placed to deliver its 2019 targets,
assuming the portfolio is fully invested.
The priorities for the following months are:
• Effective deployment of capital, caution will be
taken not to overpay for assets in the current
market, taking a long term view;
• Liquidate non-core land positions;
• Ensure the distribution is underpinned with
sustainable earnings; and
• Effectively recycle capital from highly priced
assets into assets with growth potential.
33 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018DISCLAIMER This document does not constitute an offer for securities or other interests in MAS Real Estate Inc., nor does it purport to solicit offers to subscribe for securities or interests in MAS Real Estate Inc. This document does not constitute an offer for the sale of or subscription for, or the solicitation of an offer to buy and subscribe for, securities to the public as defined in the South African Companies Act, No. 71 of 2008 (as amended or otherwise) and must not be distributed to any person in South Africa in any manner which could be construed as an offer to the public in terms of Chapter 4 of the said Act. This document does not constitute an offer of securities to the public in the United Kingdom. This communication is directed only at (i) persons who are outside the United Kingdom or (ii) persons who have professional experience in matters relating to investments who are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), (iii) high net worth entities falling within Article 49(2) of the Order and (iv) other persons to whom it may lawfully be communicated (all such persons together being referred to as “relevant persons”). Any investment activity to which this communication relates will only be available to, and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Any offer of securities to the public that may be deemed to be made pursuant to this communication in any EEA Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the “Prospectus Directive”) is only addressed to qualified investors in that Member State within the meaning of the Prospectus Directive. This document does not constitute an offer of securities for sale or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in the United States, Canada, Australia, Japan or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. In particular the shares in MAS have not been, and will not be, registered under the United States Securities Act of 1933 as amended (the “Securities Act ”) or qualified for sale under the laws of any state of the United States or under the applicable laws of any of Canada, Australia or Japan and, subject to certain exceptions, may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the Securities Act) or to any national, resident or citizen of Canada, Australia or Japan. Neither this document nor any copy of it may be distributed directly or indirectly to any persons with addresses in the United States of America (or any of its territories or possessions), Canada, Australia or Japan, or to any corporation, partnership or other entity created or organised under the laws thereof, or in any other country where such distribution may lead to a breach of any legal or regulatory requirement. MAS Real Estate Inc. disclaims any obligation or undertaking to release publicly any update, review or revise any forward looking statement contained in this document whether as a result of new information, future developments or otherwise or any change in events, conditions or circumstances on which any such statement is based. 34 MAS REAL ESTATE INC INVESTOR PRESENTATION 2018
info@masrei.com | www.masrei.com
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