capital raising - rdi reit · 2018. 9. 29. · capital raising structure and timetable structure...

Capital Raising

February 2014

2 Document name and description here 2 Redefine International P.L.C.

Important information and disclaimer

• This presentation is not an offer of securities for sale in the United States. The securities discussed herein have not been and will not be registered under the US Securities Act

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financial position, prospects, growth and strategies.


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• Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements in this presentation reflect the Group's current view with

respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's business, results of operations,

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before making an investment decision. Subject to the requirements of the Listing Rules, the Prospectus Rules and the Disclosure and Transparency Rules, the Company

undertakes no obligation publicly to release the result of any revisions to any forward-looking statements in this presentation that may occur due to any change in the Company's

expectations or to reflect events or circumstances after the date of this presentation.

• The presentation is necessarily based on economic, monetary, market and other conditions as in effect on, and the information available to the Company as of, the date hereof

and the Company assumes no responsibility for updating, revising or reaffirming the information contained herein based on circumstances, developments or events occurring

after the date of the presentation. The information contained in the presentation does not address any legal, regulatory, tax or accounting matters that may be relevant to an

assessment of any proposed transaction relating to the Company. Any recipient of this presentation must take their own financial, tax, accounting and legal advice in relation to

any of the matters addressed in this presentation or in relation to any related transaction.


Contents

Page

• Capital raising 05 - 06

• Corporate overview 07 - 12

• Portfolio review 13 - 20

• Overview of recent acquisitions 21 - 26

• Asset management 27 - 30

• Looking forward 31 - 33

• Additional information


Capital raising structure and timetable

Structure

• Placing of up to 115 million ordinary shares reflecting 9.9% of the current issued share capital of 1,115 million

• Issue price expected to be a small (approximately 5%) discount to market price

• Shares will rank parri passu with existing shares with full entitlement for the interim February 2014 distribution (payable in May 2014)

• Shares being issued across the UK and SA registers

Proposed timetable

• 17 – 19 February: Investor calls

• 20 February: Opening announcement, book build, pricing and commitments and closing announcement

• 28 February: Admission of shares to trading on the LSE and JSE


Use of proceeds

Use of Proceeds

• Acquisitions and investment

– Acquisitions of minority interests (c£6m)

– Redevelopment and asset management opportunities associated with the CMC portfolio, Germany (c£10m)

– Market opportunities in the UK and Germany

• Extending debt maturities and deleveraging

– Support the early extension of 2016 debt maturities at lower LTVs and lock-in current interest rates

– Repay working capital facility of £20m

Investor Presentation

February 2014

Schloss Shopping Centre, Berlin


Corporate overview and structure

Corporate overview

• Diversified income focused UK REIT (+ £600m market cap)

• Dual listed on LSE (Primary) and JSE (Secondary)

• Strong institutional share registers in both London and

Johannesburg

• Support of 36% major shareholder Redefine Properties

Limited (South Africa’s second largest REIT)

• Included in FTSE All Share, FTSE SmallCap and EPRA

indices

• Exposure to UK, Switzerland, Germany, Netherlands and

Australia

• Strong management teams located in London, Berlin and

Brisbane

Structure

Minorities on JSE

Share Register

Redefine Properties

Limited (JSE)

36.2% 30.4%

Minorities on LSE

Share Register

33.4%

RDI – LSE

RPL – JSE


Income focused property investment

• Portfolio and strategy focused on income within tightly defined business segments

• Each business segment supported by specialist and proven asset management teams

• Diversification provides exposure to different sources of income

• Ability to allocate capital to performing business segments

• Policy to distribute at least 90% of distributable earnings (currently 100%)

• Targeted distribution growth of CPI +1% to 2% p.a. through sustainable expansion

• Development exposure to be limited but creating value through asset management is a core strategy


Relative positioning

CLS

Development Stabilised

Primary

High yielding

Helical

Bar

plc


Forecast dividend yields

Source: Peel Hunt Forecasts (3 February 2014)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Redefin

e

New

Riv

er

Reta

il

PH

P

London

Metr

ic P

ropert

y

Intu

Pro

pert

ies

SE

GR

O

Hanste

en H

old

ings

Mu

cklo

w

British L

and

Ham

mers

on

Sa

festo

re

Big

Yello

w

Land S

ecuritie

s

Sh

aftesbury

Develo

pm

ent S

ecuritie

s

Work

space

Helic

al B

ar

Gre

at P

ort

land

Derw

ent London

Capital &

Regio

nal

Unite

Conygar

Investm

ent

St.

Mo

dw

en

Gra

inger2

Capital &

Countie

s

Siriu

s R

ea

l E

sta

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Alp

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Pyre

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So

ngbird

CLS

Quin

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Ma

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ropert

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roup


Corporate objectives

Short Term

• Deliver EPS and DPS as new UK REIT

• Reduce LTV to <50%

• Senior management appointments

• FTSE 250 Index inclusion

• Further reduce cost of capital

• Sustainable distribution growth of CPI +1% to +2% p.a. compound

• Share rating based on a sustainable dividend yield

• Key player in UK listed REIT sector

Medium Term

• Acknowledged leader in UK REIT sector

• Global player with Redefine Properties

• Alternative sources of flexible and cost efficient capital

Long Term

Portfolio review

Bahnhof Altona, Hamburg


10.1

1.0

Greater London 90.6%

Reading 9.4%

Gross rental income (£m)

Property portfolio overview

• Government-let offices, motor

trade and roadside services,

retail and residential units

• 73 properties

• 7.5% net initial yield

• Key occupiers include UK

Government, Kwik-Fit and

Malthurst

UK Stable Income UK Retail Hotels Europe

• Regionally dominant shopping

centres and convenience retail

parks

• 7 properties(1)


• Key occupiers include

Debenhams, BHS & ASDA

• 7 London-based budget hotels

• The hotels are let to Redefine

Hotel Management Ltd on a fixed

rental basis with annual reviews


• Branded under Holiday Inn,

Holiday Inn Express and Crowne

Plaza

• 33% strategic shareholding in

hotel management company

(Redefine BDL)

• Properties located in Germany,

Switzerland and the Netherlands.

The portfolio comprises shopping

centres, discount supermarkets

and government-let offices

• 36 properties


• Key occupiers include Primark,

VBG, Aldi, Rewe & Lidl

15.3

1.5

1.1 1.3

Gov. 80.1%

PFS 7.7%

Kwik Fit 5.5%

Other 6.6%


3.4

1.9

2.6

1.5 0.8

6.7

4.2

Wigan 16.2%

Coventry 8.9%

Birch'wd 12.2%

Seaham 6.9%

Crewe 4.0%

W Favell 31.7%

Harrow 20.1%


14.8

1.4

1.9

German 81.7%

Swiss 7.7%

NLD 10.5%


Note: (1) incl. Weston Favell acquired after

year-end


Lease expiry profile

3.7

5.0

3.0 2.5

3.7

1.2

3.1 2.9 3.7

4.7

24.7

6.3%

8.5%

5.2%

4.2%

6.4%

2.1%

5.4% 5.0%

6.3%

8.0%

38.4%

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024+

Expiries by gross income excl. Cromwell and Delta (£m)

UK Stable Income UK Retail Hotels Europe % of total

Note: Rental income reflects Group’s share of jointly controlled entities as at 31 August 2013

Hague (£1.9m)

expected to be

extended to

2016

£2.6m relates to

Hamburg of which

over £1.0m is

already under

negotiation


UK Stable Income

Market

• Improving occupier market with regional office take-up strengthening

• Stronger investment market conditions

• Valuations stabilising or improving in major regional centres

• Occupancy up to 97.8% reducing operating costs

• Portfolio value down by 1.0%

• Government-let offices reduced to 11.6% of portfolio

• Strong investment and occupier fundamentals for Southbank offices

Performance

• Further sales of non-core assets

• Focus on fewer and higher quality assets with greater emphasis on the South

East

• Reposition assets with higher value alternative uses

• Move into higher growth sectors or locations

Strategy


UK Retail

Market

• Consumer related economic indicators improving

• Retailer administrations reduced significantly

• Real rental growth limited

• Investor demand for good quality secondary shopping centres up sharply

• Portfolio valuation increased 2.9% in second half of the year

• Marginal decline in occupancy by 0.9% to 95% largely due to recently

completed units

• 14 new leases totalling 47,500 sq ft completed in Q4 vs 5,000 sq ft of expiries

or break options during the same period

Performance

• Continued focus on income and occupancy protection

• Capital expenditure projects at Birchwood and Harrow to enhance asset quality

and value largely complete

• Capital expenditure programmes at Coventry and Weston Favell initiated

• Rebranding of centres and development of additional sources of income

Strategy


Hotels

Market

• “Olympic” effect out of the way

• Analysts forecasting 2.0% RevPar growth in 2014 in London

• Occupancies holding at historically high levels

• Regional trends behind London

• Solid performance following slow Jan/Feb 2013

• Very strong fourth financial quarter

• Average occupancy of 83.1% in line with FY2012

• Current trading is encouraging for FY2014

Performance

• Focus to remain on branded, limited service hotels in Greater London

• Capital expenditure and refurbishment programme ongoing

• Capitalise on management expertise

• Exposure to be limited to 15% - 20% of total assets

Strategy


Europe

• Enhance income security through lease extensions and indexation

• Deliver asset management opportunities from CMC acquisition

• Sale of smaller non-core assets

Strategy

• Occupancies steady at 98.6%

• Valuations increased 1.3% in Sterling terms

• Successful sales of smaller non-core assets

Performance

Market

• Germany and Switzerland remain relative safe havens

• Investment volumes continue to rise

• Increasing risk appetite

• Cost effective debt available for good quality assets


Cromwell

• Co-ordinate strategy with Redefine Properties

• Liquid currency if required for deal making

• Positive diversification

Strategy

• Record operating profit of AUD 102.4m

• Distribution increased by 3.6% to 7.25 cents

• Net gearing reduced to 46% LTV

• Occupancy maintained at 96%

• Distribution guidance of 7.5 cents for FY2014

Performance

Market

• Economy subject to weaker Chinese activity

• Australian Dollar declined c15% against Sterling in the second half of FY2013

• Potential bounce from recently elected Government

Overview of recent acquisitions



Overview of CMC acquisition

• Portfolio valued at €189.0m reflecting a net initial yield of 5.5%

• €140.8m of stapled debt at a weighted average all-in interest cost of 3.12% p.a.

• Initial yield on equity in excess of 12.0%

• Consideration of €47.1m was settled through the issuance of 32.2m shares at an effective 40.0p per share and €31.4m in cash

• Asset management opportunities to drive both income and capital value growth

• Acquisition of property owning companies - significant saving on transaction costs

• Three high quality retail assets located in the core German investment markets of Berlin, Hamburg and Ingolstadt

• Delivering on strategy to enhance the quality of the portfolio



• Acquisition value: €93.0

• Gross rental income: €5.0m

• Net initial yield: 5.2%

• WAULT: 7.1 years

• Indexation: 99.07%

• Key tenants: Primark, REWE, dm, Toys R Us,

Cyberport

• Stapled debt: €72.0m

• Cost of debt: 2.94%

• Debt maturity: August 2017

• Occupancy: 99%

• Prime shopping centre, recently redeveloped and located in an established retail location with strong transport links

• Primark introduced in 2012 and has seen exceptional trading since opening

• Opportunities to drive rents from improved footfall and turnover as well as through advertising and commercialisation


Bahnhof Altona Shopping Centre, Hamburg

• Acquisition value: €72.5m





• Key tenants: Lidl, Media Markt, McDonalds,

Rossman


• Cost of debt: 3.68%

• Debt maturity: February 2020

• Occupancy: 100%

• Established retail location, integrally linked to the Altona train station S-Bahn transport network

• Significant surrounding development including up to 3,500 new residential units and concept in-town IKEA store

• Asset management opportunities available to enhance tenant mix and create additional retail space


City Arkaden Shopping Mall, Ingolstadt

• Acquisition value: €23.5m





• Key tenants: H&M, Thalia


• Cost of debt: 1.15% above 3 month Euribor

• Debt maturity: June 2016

• Occupancy: 87%

• Prominent location in one of Ingolstadt's prime retail streets

• Affluent retail catchment with purchasing power significantly above the German average

• Well advanced opportunity to re-position the centre as an institutional quality core retail asset


Weston Favell Shopping Centre, Northampton

• Acquisition value: £84.0m

• Net rental income: £6.4m



• Indexation: Tesco lease linked to RPI

• Key tenants: Tesco

• Debt: £50.0m

• Cost of debt: c5.7% p.a.

• Debt maturity: November 2038

• Occupancy: 97.8%

• Centre dominates the wider catchment area

• Lack of supermarket competition in the northeast of Northampton

• Tesco accounts for 53% of the net passing rent

Asset management

Holiday Inn Express, Southwark


Harrow residential conversion

• Planning gain secured

• Strategy to recycle capital into income producing investments

• Maintain exposure to rising residential market through overage provisions

• Sold to Redrow Homes for £13.4 million


St Anne House, Croydon

• Former Home Office Government building originally built in 1960’s

• Asset management strategy to convert now obsolete offices into hotel and residential units

• Secured planning permission

• Sold for £8.4 million (68% premium to book value)

St Anne House

Westfield / Whitgift Centre

Note: All pictures are architect's impressions


St George’s, Harrow

• Nando’s: £82,000 p.a (3,491 sq ft) on a new 20

year lease

• Frankie & Benny’s: £102,480 p.a (4,270 sq ft) on a

new 25 year lease with a tenant only break at year

15

• H&M: £175,000 p.a (7,786 sq ft) on a 10 year

lease with a tenant only break at year seven

• Pizza Express: £79,300 p.a (2,859 sq ft) on a new

25 year lease with a tenant only break at year 15

• Vue, Prezzo, McDonalds and TK Maxx units

comprehensively refurbished

• Letting and asset management strategy successfully implemented

• Tenants investing in own stores alongside investment in the centre

• Retailers reporting increased footfall and turnover

Looking Forward


Looking forward

• Corporate restructuring complete

• Internationally recognised REIT structure to attract a wider investment audience

• Board and management strengthened

• Focus now firmly on assets and new opportunities

• Continue to improve the quality of the portfolio and long-term income security and growth potential

• Opportunities to diversify sources of funding and reduce cost of capital allowing investment into better quality assets

• Selective redevelopment and investment into existing assets to support income growth

• Opportunistic approach to new acquisition opportunities

• Continue to recycle capital across the portfolio into performing sectors

• Manage risks (increasing interest rates, asset price bubbles)

• Broaden shareholder base


Contacts

Mike Watters

Chief Executive Officer

t: +44 (0)20 7811 0100

e: [email protected]

Stephen Oakenfull

Deputy Chief Executive Officer

t: +44 (0)20 7811 0100

e: [email protected]

Redefine International P.L.C.

Top Floor, 14 Athol Street

Douglas

Isle of Man IM1 1JA

t: +44(0)1624 689 589

2nd Floor, 30 Charles II Street

London SW1Y 4AE

t: +44 (0)20 7811 0100

www.redefineinternational.com

Additional information



FY2013 results highlights

• Improved earnings delivered from a stronger financial position

• Increase in full year Adjusted NAV

• Operating environment showing signs of growth

Operating FY2013 FY2012 Change

Occupancy (by area) 97.3% 95.5% + 1.9 ppt

Indexation 51.2% 52.0% - 0.8 ppt

WAULT (years) 8.7 8.6 0.1

Income FY2013 FY2012 Change

Distributable earnings (£m) 30.1 25.5 + 18.0%

Distributable EPS (1)

3.11 4.40 (29.3%)

Dividend per share 3.11 4.40 (29.3%)

Financial Position FY2013 FY2012 Change

Adjusted NAV per share 38.66 36.41 +6.2%

Group LTV 60.4% 81.7% (21.3) ppt

Pro-forma LTV 56.8% n/a

Total shareholder return 58.9% (16.2%) n/a

Notes:

(1) Distributable EPS reflects the additional 388.5m ordinary shares in issue during the year (after taking into account the 9 for 10 consolidation)

(2) Pro-forma LTV reflects the Aviva restructuring announced post year end

(3) Total shareholder return as measured by Datastream


Earnings available for distribution

3.11 3.11

4.28 0.31

1.65

0.12 0.02

0.44

0.21 0.20

1.61

0.19

Gross

rental

income Operating

expenses

Income

from

associates

and joint

ventures(2) Investment

management

fee Non-

controlling

interest Net finance

charges

Tax & FX

loss Distributable

EPS

Fee & other

income Admin.

expenses

Notes:

(1) Distributable EPS reflects the additional 388.5m ordinary shares in issue during the year (after taking into account the 9 for 10 consolidation)

(2) Includes all Cromwell distributions received for the year

(3) Relates to CMC earnings from 1 June 2013

UK Stable Income, 37.5%

UK Retail, 20.0%

Europe, 16.9%

Hotels, 25.6%

Income from

new

investments(3)


Portfolio valuation

• Portfolio valuations stabilised, up 0.9% excluding non core assets

• Exposure to regional office assets reduced to 11.6%(1) of portfolio as planned

• UK Retail values supported by successful leasing and asset management strategies

• No ‘economic’ impact from valuation changes in non-core assets

Notes:

(1) Reflects percentage of portfolio (including share of jointly controlled entities) by market value but excluding non-core assets

(2) Reflects CMC transaction (part of European portfolio)

(3) Non-core assets include the Delta portfolio (held for sale) and the ICC Criminal Court in the Hague

Portfolio valuation movement

£m

Proportion of

portfolio by value

Market value

31 August 2013

Valuation movement

H2

UK Stable Income 18.3% 151.2 (1.0%)

UK Retail 21.1% 174.6 2.9%

Hotels 18.2% 150.3 0.1%

Europe 15.4% 127.8 1.3%

Total like-for-like portfolio 72.9% 603.9 0.9%

Acquisitions(2)

18.9% 156.6 0.0%

Total investment portfolio 91.8% 760.5 0.9%

Non-core assets(3)

8.2% 67.5 (8.9%)

Total portfolio 100.0% 828.0 (0.2%)


38.66

36.41

24.78

2.09 2.04 3.11

4.05 3.78 2.22 30.43

8.23

Adjusted NAV per share

Pro-forma(1)

Adjusted NAV

(Aug 2012)

Distributable

EPS

Other items (2)

Adjusted NAV

(Aug 2013)

Impact of

capital raise

Non-

recourse and

residual debt

adjustments

Dividends

Portfolio

revaluation EPRA NAV

(Aug 2012)

+6.2%

EPRA NAV

(Feb 2013)

Cromwell

market

value adj.

Notes:

(1) August 2012 Adjusted NAV per share of 39.06 pence adjusted for the issuance of 490,384,616 new ordinary shares at 26 pence per share and the subsequent 9 for 10 share consolidation

(2) Other items include £16.4m related to the gain on the write-off of VBG debt on restructuring and a performance fee accrual of (£6.4m) in relation to the Investment Adviser’s Agreement

(3) Following the reduction in shareholding to 13.7%, Cromwell is now accounted for at market value which was previously an adjustment to EPRA NAV

(4) All figures are per share reflecting the fully diluted number of shares of 1,017,158 shares as at 31 August 2013


13.2

29.2

210.0

73.3

42.4 11.9

47.3

148.1

79.2

18.2

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

Debt maturity profile (£m)

Debt position

• Pro-forma(1) Group LTV reduced to 56.8%

• Pro-forma see through LTV including share of JVs reduced to 57.6%

• Pro-forma debt maturity profile significantly enhanced to 9.0 years

• Weighted average interest rate of 4.59%

• 99.9% of debt at fixed or capped rates

Notes:

(1) Pro-forma figures include the impact of the Aviva restructuring post year end and excludes the non-recourse Delta and Hague facilities

£79.2m remaining

Delta facility to be

sold down

(non-recourse)

Planned extensions or refinancing of 2016

maturities already underway:

• St George’s: £40.5m

• Hotels £85.9m

• Cromwell: £37.7m

• Ingolstadt: £11.4m

• Zeta: £37.7m £18.2m Hague

facility –

conditional

extension to

2016


Property portfolio metrics

Note: Property metrics as at 31 August 2013

Portfolio Analysis

Total portfolio proportionately

consolidated

% of

portfolio by

market

value

Market

value

31 August

2013 Properties Area (m 2)

Annualised

rental

income

Gross

estimated

market

rental value

Net initial

yield

Weighted

average

lease length

Voids (by

ERV)

Voids (by

lettable

area)

UK Stable Income Portfolio 18.3% 151,214,500 73 122,800 12,056,154 9,886,720 7.5% 9.1 3.9% 2.2%

UK Retail Portfolio 21.1% 174,560,000 6 115,686 14,364,275 15,730,906 7.0% 11.0 5.1% 5.0%

Hotels 18.2% 150,300,000 7 26,744 11,100,000 11,100,000 7.0% 12.3 0.0% 0.0%

Europe 34.3% 284,405,750 36 113,572 16,244,502 16,106,178 6.4% 6.4 1.5% 1.4%

Total (excl. non-core portoflio) 91.8% 760,480,250 122 378,802 53,764,932 52,823,803 6.9% 9.4 2.7% 2.7%

Non-core portoflio 8.2% 67,522,014 17 69,770 8,960,068 5,777,288 12.5% 4.3 3.4% 2.4%

Total (incl. non-core assets) 100.0% 828,002,264 139 448,572 62,724,999 58,601,092 7.3% 8.7 2.8% 2.7%


Property portfolio metrics (cont.)

Portfolio Analysis

Consolidated portfolio

%

Ownership

(effective)

Market

value

31 August

2013 Properties Area (m 2)

Annualised

rental

income

Gross

estimated

market

rental value

Net initial

yield

Weighted

average

lease length

Voids

(by ERV)

Voids

(by lettable

area)

UK Stable Income Portfolio

Office 100.0% 100,000,000 23 55,477 8,258,081 6,026,084 7.8% 8.0 4.5% 3.9%

Kw ik Fit Portfolio 100.0% 14,995,000 27 14,870 1,057,411 1,016,988 6.7% 15.9 0.0% 0.0%

Petrol Filling Stations 100.0% 20,970,000 19 46,802 1,477,058 1,477,058 6.7% 11.8 0.0% 0.0%

Total UK Stable Income Portfolio 135,965,000 69 117,149 10,792,550 8,520,130 7.5% 9.3 3.2% 1.8%

UK Retail Portfolio

Birchw ood, Warrington 100.0% 30,020,000 1 36,290 2,560,256 2,929,037 6.9% 17.9 8.4% 8.3%

St Georges, Harrow 100.0% 59,750,000 1 20,312 4,231,020 4,601,570 6.1% 6.7 4.8% 2.4%

Byron Place, Seaham 100.0% 17,860,000 1 10,719 1,456,471 1,532,300 7.2% 13.0 3.4% 4.3%

Crew e 100.0% 9,360,000 1 16,923 840,839 958,822 8.2% 13.1 9.2% 5.9%

Total UK Retail Portfolio 116,990,000 4 84,244 9,088,587 10,021,729 6.6% 11.5 6.1% 5.9%

Hotels

Brentford Lock 71.0% 25,300,000 1 5,673 1,870,000 1,870,000 7.0% 12.3 0.0% 0.0%

Southw ark 71.0% 22,600,000 1 2,181 1,500,000 1,500,000 6.3% 12.3 0.0% 0.0%

Limehouse 71.0% 24,700,000 1 5,747 1,800,000 1,800,000 6.9% 12.3 0.0% 0.0%

Royal Docks 71.0% 22,600,000 1 4,561 1,615,000 1,615,000 6.8% 12.3 0.0% 0.0%

Park Royal 71.0% 16,150,000 1 3,565 1,175,000 1,175,000 6.9% 12.3 0.0% 0.0%

Reading 71.0% 12,500,000 1 3,163 1,040,000 1,040,000 7.9% 12.3 0.0% 0.0%

Earls Court 42.6% 26,450,000 1 1,854 2,100,000 2,100,000 7.5% 12.3 0.0% 0.0%

Total Hotel Portfolio 150,300,000 7 26,744 11,100,000 11,100,000 7.0% 12.3 0.0% 0.0%

Europe

Schloss Centre, Berlin 100.0% 75,938,567 1 19,026 4,260,037 4,324,287 5.3% 7.1 2.0% 1.0%

Bahnhoff Altona, Hamburg 100.0% 61,433,447 1 15,513 3,729,280 3,581,651 5.7% 3.5 0.0% 0.0%

City Arkaden, Ingolstadt 100.0% 19,197,952 1 10,391 1,259,121 1,308,131 6.2% 5.0 11.3% 12.9%

Ciref Berlin / German portfolio 96.0% 18,950,512 15 19,996 1,774,069 1,690,021 8.8% 5.7 0.1% 0.2%

Bremen / Lindenhoff 77.7% 5,895,904 1 4,167 488,903 458,568 7.8% 5.5 0.0% 0.0%

Sw iss portfolio 100.0% 21,443,442 2 4,018 1,403,634 1,480,153 6.2% 7.0 0.0% 0.0%

OBI portfolio 48.0% 18,617,747 2 19,388 1,446,763 1,396,321 7.3% 10.0 0.0% 0.0%

Total European Portfolio 221,477,572 23 92,500 14,361,807 14,239,132 6.1% 6.0 1.7% 1.7%

Wholly owned portfolio 624,732,572 103 320,636 45,342,944 43,880,991 6.9% 9.4 2.5% 2.7%


Property portfolio metrics (cont.)

Note: Property metrics as at 31 August 2013

JVs and jointly controlled entities

proportionate share

Market

value

31 August

2013 Properties Area (m2)

Annualised

rental

income

Gross

estimated

market

rental value

Net initial

yield

Weighted

average

lease length

Voids

(by ERV)

Voids

(by lettable

area)

UK Stable Income Portfolio 15,249,500 4 5,652 1,263,605 1,366,590 7.8% 7.4 8.1% 10.6%

UK Retail Portfolio 57,570,000 2 31,442 5,275,689 5,709,177 7.7% 10.3 3.3% 2.8%

Europe 62,928,178 13 21,072 1,882,695 1,867,046 7.6% 9.2 0.3% 0.3%

Total share 135,747,678 19 58,166 8,421,988 8,942,813 7.7% 9.6 3.4% 2.6%

Total portfolio 760,480,250 122 378,802 53,764,932 52,823,803 7.0% 9.4 2.7% 2.7%

Non core portfolio

Delta 100.0% 55,150,000 16 56,892 7,047,056 4,108,415 12.1% 5.2 4.8% 3.0%

Hague 100.0% 12,372,014 1 12,878 1,913,012 1,668,874 14.6% 0.8 0.0% 0.0%

Total non core portfolio 67,522,014 17 69,770 8,960,068 5,777,288 12.5% 4.3 3.4% 2.4%


Jointly controlled entities

Note:

(1) Figures are shown as 100%. Ownership % included in table

(2) Annualised rental income reflects gross rents less headlease payments


%

Ownership

Market

value

31 August

2013 Properties Area (m2)

Annualised

rental

income

Gross

estimated

market

rental value

Net initial

yield

Weighted

average

lease length

Voids

(by ERV)

Voids

(by lettable

area)

UK Stable Income JV and subs

Churchill Court 25.0% 11,300,000 1 9,813 1,473,058 1,795,000 12.3% 3.2 24.5% 24.5%

Pearl House, Sw ansea 50.0% 1,449,000 2 883 160,080 205,080 10.4% 1.0 0.0% 0.0%

The Esplanade, Jersey 50.0% 23,400,000 1 5,514 1,630,600 1,630,600 6.6% 10.0 0.0% 0.0%

Total 36,149,000 4 16,210 3,263,738 3,630,680 7.8% 7.4 8.1% 10.6%

UK Retail Portfolio JVs and subs

Grand Arcade, Wigan 50.0% 77,740,000 1 43,353 6,797,473 7,091,100 7.6% 12.4 3.3% 2.8%

West Orchards, Coventry 50.0% 37,400,000 1 19,530 3,753,904 4,327,253 7.8% 6.5 3.4% 2.8%

Total UK Retail Portfolio 115,140,000 2 62,883 10,551,377 11,418,353 7.7% 10.3 3.3% 2.8%

Europe

Waldkraiburg 48.5% 8,489,761 1 5,395 605,983 577,666 6.7% 10.9 0.0% 0.0%

Kaiserlautern 48.5% 5,383,959 1 3,466 405,747 399,942 7.1% 10.9 0.0% 0.0%

Hucklehoven 48.5% 9,803,754 1 11,065 751,472 751,472 7.2% 13.6 0.0% 0.0%

Premium 48.0% 27,841,297 6 23,780 2,141,814 2,143,669 7.3% 5.8 0.9% 1.0%

Retail sub-total 51,518,771 9 43,706 3,905,016 3,872,749 7.2% 8.6 0.5% 0.6%

VBG portfolio 49.0% 77,730,375 4 45,316 6,522,877 3,508,881 7.9% 9.6 0.0% 0.0%

Total Europe 129,249,147 13 89,021 10,427,894 7,381,630 7.6% 9.2 0.3% 0.3%

Total 280,538,147 19 168,115 24,243,009 22,430,663 7.7% 9.4 3.1% 2.2%


Segmental lease expiry profiles

0.5

1.3

0.9

0.1

2.6

0.1

0.8 0.6

1.2

4.1

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

FY

2022

FY

2023

FY

2024

+

UK Stable Income Gross rent (£m)

0.7 0.4

1.4 0.9

0.8 0.4 0.3

1.2 1.5

0.9

4.8

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

FY

2022

FY

2023

FY

2024

+

UK Retail Gross rent (£m)

11.1

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

FY

2022

FY

2023

FY

20

24

+

Hotels Gross rent (£m)

2.4

3.3

0.8

1.4

0.4

0.8

2.8

0.9

1.6

2.6

4.7

FY

2014

FY

2015

FY

2016

FY

2017

FY

2018

FY

2019

FY

2020

FY

2021

FY

2022

FY

2023

FY

2024

+

Europe Gross rent (£m)


Analysis of debt facilities

Group Debt Analysis

(on balance sheet)

%

Ownership

(effective)

Principal

31 August

2013

Weighted

average

interest rate

(%)

UK Stable Income Portfolio

Office 100.0% 43,779,000 4.13%

Kw ik Fit Portfolio 100.0% 10,734,969 6.37%

Petrol Filling Stations 100.0% 9,026,800 4.19%

Total UK Stable Income Portfolio 63,540,769 4.51%

UK Retail Portfolio

Birchw ood, Warrington 100.0% 29,150,000 6.10%

St Georges, Harrow 100.0% 40,537,500 3.01%

Byron Place, Seaham 100.0% 16,749,910 6.44%

Total UK Retail Portfolio 86,437,410 4.72%

Hotels

Holiday Inn Portfolio 71.0% 73,543,670 4.60%

Earls Court 42.6% 12,359,375 5.19%

Total Hotel Portfolio 85,903,045 4.68%

Europe

Schloss Centre, Berlin 100.0% 61,433,447 2.94%

Bahnhoff Altona, Hamburg 100.0% 47,303,754 3.68%

City Arkaden, Ingolstadt 100.0% 11,357,636 1.80%

Ciref Berlin / German portfolio 96.0% 18,211,523 5.57%

Bremen / Lindenhoff 77.7% 4,015,232 4.95%

Sw iss portfolio 100.0% 11,927,481 1.98%

OBI portfolio 48.0% 13,465,444 2.25%

Total European Portfolio 167,714,517 3.28%

Cromw ell 100.0% 34,522,440 7.30%

Total core debt 438,118,180 4.34%

Non core debt

Delta & The Hague 100.0% 97,370,138 2.15%

Total debt 535,488,319 3.94%

Debt Facilities


%

Ownership

Principal

31 August

2013

Weighted

average

interest rate

(%)

UK Stable Income JV and subs

Churchill Court 25.00% 9,780,000 6.23%

Pearl House, Sw ansea 50.00% 1,269,000 4.00%

The Esplanade, Jersey 50.00% 20,055,000 6.12%

Total UK Stable Income 31,104,000 6.07%

UK Retail Portfolio JVs and subs

Grand Arcade, Wigan 50.00% 144,240,724 5.68%

West Orchards, Coventry 50.00% 18,635,127 6.29%

Total UK Retail Portfolio 162,875,851 5.75%

Europe

Waldkraiburg 48.47% 5,714,033 2.56%

Kaiserlautern 48.47% 3,559,911 2.62%

Hucklehoven 48.47% 6,690,060 2.57%

Premium 48.00% 21,950,339 5.17%

Retail sub-total 37,914,343 4.08%

VBG portfolio 49.00% 48,549,701 2.64%

Total Europe 86,464,044 3.27%

Total 280,443,895 5.02%

Notes:

Figures reflect 100%

Effective shareholding shown under % ownership


UK Retail portfolio

• St George’s Shopping Centre, Harrow

• Valued at £57.5 million (pre refurbishment/re-letting)

• 212,000 sq ft

• Vue Cinemas, Fitness First, H&M, Boots, T.K. Maxx, Prezzo, Pizza Express, Nandos

• Leisure focused retail scheme

• Grand Arcade Shopping Centre, Wigan

• Valued at £76.4 million

• 470,000 sq ft

• Debenhams, M&S, BHS, Monsoon, Next, T.K. Maxx

• Dominant city centre modern scheme

• West Orchards Shopping Centre, Coventry


• 210,000 sq ft

• Debenhams, M&S, Body Shop, WH Smith, KFC

• Dominant city centre scheme


UK Retail portfolio (cont.)

• Birchwood Shopping Centre, Warrington


• 400,000 sq ft

• ASDA, Aldi, Argos, Home Bargains, New Look, QVC

• Retail park

• Byron Place Shopping Centre, Seaham


• 115,000 sq ft

• ASDA, Argos, Farmfoods, Peacocks, Wilkinson

• Retail park

• Delamere Place Shopping Centre, Crewe


• 180,000 sq ft

• BHS, Arriva

• Redevelopment


UK Retail portfolio (cont.)

• Weston Favell Shopping Centre, Northampton


• 307,763 sq ft

• Tesco, Wilkinsons, Boots and New Look

• Edge of Town

Note: Weston Favell was acquired post the FY2013 year end


Hotel portfolio

• Holiday Inn Brentford Lock

• Valued at £25 million

• 61,064 sq ft rentable area @ £24.56 per sq ft

• 134 bedrooms and 12,743 sq ft meeting room area

• Holiday Inn Express Earls Court



• 150 bedrooms and 226 sq ft meeting room area

• Holiday Inn Express Limehouse



• 150 bedrooms and 159.3 sq ft meeting room area


Hotel portfolio (cont.)

• Holiday Inn Express Southwark



• 88 bedrooms

• Holiday Inn Express Park Royal



• 108 bedrooms and 1,371 sq ft meeting room area

• Holiday Inn Express Royal Docks





Hotel portfolio (cont.)

• Crowne Plaza, Reading





Redefine BDL Hotel Group Limited (“RBDL”)

• RBDL is the UK’s largest independent hotel management and

development company with 60 hotels under management

representing 6,700 rooms in the United Kingdom, Liberia and

South Africa.

• The operations offices are located in London and Glasgow and

a corporate office in the British Virgin Islands. Redefine BDL

Hotels’ key objective is to operate owners’ hotels to best

practice, by dedicating the required management resources

and utilising centralised systems and processes to deliver

overhead savings.

• RBDL offers a wealth of hotel management expertise to

clients, bringing exceptionally strong international hotel brand

relationships as franchisees of five of the largest international

hotel brands (InterContinental Hotels Group, Wyndham

Worldwide, Starwood Hotels & Resorts Worldwide, Hilton

Hotels & Resorts, and Best Western).

• RBDL manages hotel assets through both management

contracts and long term leases. The senior management team

has experience in operating franchised hotels in many different

parts of the world.

• RBDL has developed 3,850 hotel rooms since 2000 and its

vision is to be managing 100 hotels by August 2016.


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Cro

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D

Cromwell Cromwell (GBP) ASX 200 Closing

Cromwell

• Identified as an undercapitalised company at the bottom of the cycle with a strong management team

• Provided strategic support as a cornerstone shareholder and underwriter to raise growth capital

• Shareholding reduced to 13.2%

Initial acquisition

of 12.97% at

$0.70

Supported placement

and rights issue at

$0.72 – $0.75

Supported rights

issue at $0.71

Supported

entitlement offer

at $0.68

• Share price (AUD) +29.1% since entry

• Share price (GBP) +23.7% since entry

Share price of $1.035 as at 30 August 2013

Sale of 84.5m

securities between

$0.90 and $0.94

Supported

capital raising at

$0.79

Sale of 8.5m

securities at

$0.96


Relative share price performance

20.00

25.00

30.00

35.00

40.00

45.00

50.00

55.00

60.00

65.00

Aug 2

012

Sep 2

012

Oct 20

12

No

v 2

012

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c 2

012

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01

3

Feb

201

3

Ma

r 201

3

Apr

20

13

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y 2

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01

3

Jul 201

3

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013

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013

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13

No

v 2

013

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c 2

013

Jan 2

01

4

Share

price (

pence)

Redefine International FTSE All Share FTSE 250 FTSE 350 Real Estate

Source: Bloomberg

91.4%

18.0%

40.0%

31.3%

capital raising - rdi reit · 2018. 9. 29. · capital raising structure and timetable structure...

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