Wereldhave Nv

Good morning and welcome to the Wereldhaven webcast for the full year 2025 results. I'm here today with our CFO, Dennis de Vrede, and I'm Matthijs Storm, the CEO of Wereldhaven. We'll take you through a presentation, which you can also find on our website. Already during the presentation, you can type your questions in the text box at the bottom of your screen. Towards the end of the presentation, we will deal with all your questions as usual. So let's get started. Let's start with some key messages of the 2025 results. Direct result per share €1.86 which is well above the initial guidance that we provided about a year ago and also above the latest guidance with Q3 of €1.80 to €1.85. Zooming in on the results, and we'll give you some more color later, of course, during the presentation, but we see improving occupier markets costs have been relatively stable, which I think is also a good achievement of the company with a growing portfolio. And last but not least, we also see growth in what we call other income. We'll get back to that later. Occupancy rate at 98%. We had to dive into quite some older annual reports to find a number like this. That was in 2013. That was actually before the big wave of a lot of bankruptcies in retailer chains in the Netherlands and in Belgium and I think also in other European countries. So it's nice to see that we're back at this high level. Like-for-like rental growth plus 6%, improving Dutch retail market is helping a lot with that, but also the older income I just mentioned. We'll zoom in on the breakdown of this later. We sold the Dutch full service center Sterreburg at €60 million book value in December 2025, which I think is an interesting achievement because this is the first full service center we are selling with some compelling KPIs. Dennis will talk about that later. Stable cost base, I've mentioned. Total shareholder return last year of plus 51%. The dividend per share, we proposed €1.30 for 2025. That will be decided on the AGM of May 2026. It's an increase of 4%. With that, we remain quite conservative. It's a payout of 70%, a little bit below. The targeted payout range, but as long as our loan-to-value is above 40%, Dennis will talk more about that later, we think we should remain conservative. Outlook for 2026, 185 to 195. Zooming in on some of the key numbers of 2025, the direct result I've already mentioned. The indirect result, unlike last year, was slightly negative. We'll zoom in on that later. We saw slightly negative valuations in the Netherlands and in Belgium. It's more asset-specific. We'll talk more about it later. On the LTV side, you see a slight increase over the last year from 41.8 to 42.5. Again, I want to stress it is our priority to reduce this below 40%. The French disposals, equity-funded acquisitions, but also JVing existing Dutch assets, for example, will all help to reduce the LTV ultimately below 40%. We're now at 16.4% mixed use, so we also made nice progression on that side. The like-for-like rental growth, I'll zoom in on the call-out box on the top right of your screen. 6.3% driven first and foremost by indexation, logical, other income. Thirdly, reduction of property expenses, which was a key priority already in 24, but also in 25. which is yielding some very nice results amongst others, recouping some older bad debt. I think a very nice performance of our finance team. Leasing plus 0.6%, combination of positive leasing spreads, slightly positive leasing spreads of about 3%, but also some sales-based rent. Occupancy, small increase with 20 basis points contributing to the like for like. Then zooming in on what we call other income, which is becoming a more and more important revenue driver. When we talk about other income, we're not talking about rental income from the shops we are renting out or from the parking. For us, it's important to mention that in the definition. Parking income is not other income. It's real estate. So it's real estate income. It's rental income. We talk about ESG income, for example, solar panels, EV chargers on the parkings. As you know, we own, in most of the cases, we own the parkings, either underground, but in Belgium, for example, mostly outside. And those are interesting opportunities. Think about Vilde, we bought in Charleroi with about 2,500 parking spaces, all outside, ground floor level. Very interesting opportunity to roll out EV chargers. Marketing and media, digital screens. We signed an important deal in September last year with Ocean Outdoor for the Netherlands, boosting our direct result per share by at least 3% per annum. We'll be working on Belgium and Luxembourg this year. We signed our first joint venture with Sofide for Stadszaak Soutermeer in June 2025. The management income from that JV is included in the other income. Of course, we also have a profit share in the entity where we are investing in Soutermeer, but here we're talking about the management fees. Self-services, for example, vending machines in our centers. And lastly, specialty leasing. I think that is a well-known concept, but that is also increasing. So let's talk about some numbers. In 2025, we had 6.7 million euros of our income and we think we can increase to 10.1 million in 2027. Of course, this number does not yet include additional joint ventures. If we're able to sign, and we're working on several projects in the Netherlands, if we're able to sign more joint ventures, of course, the figure will increase. Then we focus on the results itself. Operations, we're very happy with the results, particularly with the Netherlands. Finally, a positive leasing spread. You'll see more about that later. If I focus on the core portfolio, Netherlands, Belgium and Luxembourg, you can see an MGR uplift of 2.7%, which I think is compelling. but also the occupancy rate of 98, as mentioned before. France is still a negative figure, but less negative at least than last year. And we also think that our NRI from France will be relatively stable to slightly up in 2026, despite, as you probably know, the very low inflation and indexation forecasted for 26 for France. The Life Central strategy, we already have about four or five years of track record, so we thought it would be nice to show you some aggregated results. Food fall, full service centers nicely above traditional shopping centers. Also tenant sales, but also the total property return. Our key indicators, I think many of you know this, but I think the charts speak for themselves. Then we also published a table with some details results. I'm not going to mention it all. As you might know, in the first half of 25, we had about an 8 million write-down on our Tilburg asset because we extended some leases. We chose for longer lease maturities that had some impact, of course, on the valuation results of the full service centers. But other than that, if you focus on the bottom of the slide, you can see some nice outperformance. Dutch leasing market, I mentioned it already. We see it improving. 2013, 14, 15, 16, a lot of bankruptcies, as we've mentioned previously. Then came the COVID period, which was also tough, of course. But now we see an improving market. What you can see here on the chart is, first of all, the leasing spread. New rent versus old rent has been negative for a lot of years, but has now turned positive to plus 4%. And also the occupancy rate of the portfolio at 97.4% is actually at the highest since 2013, which is not even on this chart. We see an improving market. I'd also like to mention, for example, the vacancy of Blocker and Casa. The reletting of the units that took place in the first half of 2025 went pretty quick and occurred in total at a slightly higher rent than the previous rent. We could choose amongst several concepts And that was a while ago, so we're quite positive and constructive on that. The footfall, I think you can see here in all the three charts that in the Netherlands, Belgium, Luxembourg, our core markets were nicely outperforming the market. Tenant sales. Plus 2%, a little bit slower growth than last year, particularly in Belgium. You can see, for example, in the shoes segment in both countries, actually, but in Belgium that is a bigger segment in our portfolio. That dragged down the sales growth a bit. What's also impacted is the bankruptcy of Lunch Garden, the larger F&B concept, in 2024. Some of those units were vacant in 2025, so that, of course, impacts the like-for-like sales growth in Belgium. In the Netherlands, plus 3% is above inflation indexation, which I think is a good result, except for multimedia and electronics, minus 5%. We had a tougher year, although the COVID years and the post-COVID years were a little bit stronger in this segment. Daily life, as you know, we use this as a gauge here. For the resilience of our revenue stream, we now have 65% daily life exposure, convenience retail, non-discretionary. It's a little bit lower than last year, and this is all because of, and you can see this in the call-out, because of the acquisitions in Luxembourg, but also Ville d'Or in Charleroi. Of course, these shopping centers will also be turned into full-service centers, and once that is completed, the daily life exposure will go up again. Then on the commercial update, first of all, Belgium, we've signed about 11 million of MGR, 8% above ERV and slightly above old rent. It's a little bit lower than the last couple of years. That is also because we did a lot of leases in Genk, which is in the north of Belgium, in Flanders. It is a more difficult location, a city with higher unemployment and tougher economics and demographics overall. There was a lot of leasing activity in that city in 25. That's why the leasing spread was a bit lower. I think for 26, we expect a higher figure than plus 2% for leasing versus old rent. Luxembourg, it's only the start, of course, because these assets were acquired in 2025, but we've leased some units at 8% above ERV. We've extended, for example, MediMarket, which is a very strong parapharmaceutical concept in Belgium that we've actually also now brought to the Netherlands. MediMarket signed their first lease in Zoetermeer in our assets that we jointly own with Sofidee. In the Netherlands, very importantly, signed in Tilburg with TK Maxx for 2,000 square meters. This was after the first half results, so that had a small positive impact again. It's a very strong anchor and I think also a very suitable tenant for a city like Tilburg, which already had some positive impact on the footfall on that part of the city. International leasing, I already mentioned the example of Mayday Market coming from Belgium to the Netherlands, but we also have some other examples, for example, Bestseller Group, which is becoming one of the largest tenants in our portfolio with brands like Only, Only & Sons, Jack & Jones, Viramoda, that we have in all countries and is expanding rapidly and is showing very good turnovers in our portfolio. Before I hand over to Dennis, lastly on the occupancy cost ratio, in the Netherlands, relatively stable, that is logical, because the sales growth was in line with the rental growth. In Belgium, we see a slight increase. We have about 1% retail sales growth, but we also noticed in Belgium a small uptick in the service cost, and as a result, the OCR is up from 14% to 15%. I still believe... That is a very sustainable level. Our sales productivity per square meter in Belgium is higher. So this is a level we should maintain. And as I commented earlier already, we forecast for 26 a more positive leasing spread in Belgium than in 25. With that, I'd like to hand over to Dennis.

Thank you Matthijs, and also a warm welcome from my side. My first slide is showing our cost reduction efforts over the past six, seven years. As you can see here, we've been reducing and stabilizing iDirect GenX, and at the very same time we've also been focusing very much on our other cost buckets. And that results in a 20.6% APRA cost ratio in 2025. And I think we have a stable cost basis, meaning that if we grow the portfolio further, if we grow our top line further, I would expect our APRA cost ratio to go even below the 20% mark. On the direct result side, Matthijs mentioned already the 186 per share, which is equating into 101 million of direct results. A 10% growth, a nice growth, I think. If I would exclude the acquisitions and disposal effects of 2025, it would come down to close to 3% growth. But if I would also mention, and you can see it on the very right-hand side of the chart, the tax buckets, this is the first year that we have been paying corporate income tax in the Netherlands, almost 4.5 million. That would equate into another 9 to 10 cents direct results per share. So all in all, I think a very stable and a very solid year this year on our direct result side. Here again, a little bit of a color of over the past few years. On the left-hand side, we are looking to grow the direct result per share to 185 to 195 in 2026. That is, again, that is another 3% to 4% growth if I would take the 190 as the mid-range of that. For 2025, Matthijs just mentioned, we will be proposing €1.30 per share for dividends and we would see that going into €1.35 for 2026 as a forecast, as a guidance for our dividends. Moving on to the relative performance, I would say we announced our life central strategy back in 2020, to be exact, almost six years ago. And as you can see here, we have achieved on the very right-hand side, we've achieved an 80%, 81% total return over those six years. So again, I think a very nice achievement if I compare ourselves to the six other peers which are closest to us. We are number one, number two, as you can see on this chart. Also for this year, for 2026, I think year to date we are already at a 16% return as per now. Moving into a few of the transactions which we haven't mentioned already in the first half or the third quarter of the year. I think the two most important ones in Q4 are the disposal of our full service center Sterrenburg in Dordrecht. A very important one for us. I think this was one of our nicest assets and one asset where we have been, I think, demonstrating that the full service center strategy really works. All in all, we have been realizing almost 10%, 9.3% IRR on the transformation and the disposal of this asset. At a 6% net initial yield, we have been able to sell this asset, and I think it also demonstrates the fact that the full service center strategy is working. I mean, the values are real, as you can see here, proving by this first transaction of a full service center. Moving on to one of our latest acquisitions as part of our capital rotation strategy. We have acquired the Vilde shopping center in Charleroi in Belgium. We are very happy with this asset. Again, here we've been able to raise quite some equity in Belgium to partly finance this transaction. And we believe this asset will be a very good contribution to the Belgium team and to, of course, to Beelhaven as a group. Net rental income almost 10 million. We bought it at a net initial yield of 8%. So I think there's quite some work we can do there to further enhance the value of this asset. Demonstrated on this slide, we will be pushing Vilde into the full service center, to the life center strategy. We've been already scanning through the asset. What can we do? What can we add to enhance the value? And on the right-hand side, you see all the different buckets that we're looking at to make sure that we are increasing the value of this property. Moving back to Matthijs.

Yes, thank you, Dennis. On the LifeCentral strategy, and Dennis already gave some examples for Vildeun, Charleroi. As you can see, the bottom right of this chart, our mixed-use percentage is continuing to increase 15% to 16% this year, and we forecast another increase to 17% for 2026. And with that, I think it's also good to talk about the completions for 2025. Nivelle in Belgium, we've mentioned this earlier in October, when we celebrated the opening of the redevelopment of Nivelle. It was fully led, first and foremost, I think the most important metric, but also some nice new concepts, for example, in F&B. In Arnhem, in the Netherlands, we've completed the first phase of the transformation, phase one, also fully led with a new Jumbo supermarket. I'm looking at the pictures, but it's difficult to see here, but we have some on the website. It's another strong anchor to this center, but also the eat and meet square that you can see on the top left of the pictures. is working very well with some interesting turnovers from the first month of operations. So we're happy with the first phase, and we're now working actually on the plans for phase two of Kronenberg. 2026 will be a year of study and desktop work, and then I think in 2027 we can commence the works on phase two of this center. A launch for transformation is City Plaza. We already did some smaller things in this shopping center over the past years. On the top right hand side you can see several elements. We're adding a health and fit zone. The operator, a larger healthcare operator, Huurom, has already signed the lease. That's done and dusted and at the moment we're doing the works. We already included the new gym with basic fit on the right hand side. In the middle, you can see the new Eat and Meet Square, for which several tenants have already signed up. We communicated on that already. A fresh street, every deli on the left-hand side, and also a little bit of right-sizing. We sold some units to a residential developer. We'll build housing on that part, which is, I think, beneficial for both, because, again, the Life Center strategy is not only about turning retail into mixed use. Sometimes it's also about right-sizing the retail. In Luxembourg, we have started to work on the transformation of Knauf-Schmiede. That's one of the two centers we bought back in February 2025. Also here, there will be some right sizing. We're adding mixed-use, for example, a fitness on the first floor. We're improving the visitor flows through a new layout of the center, and then we're adding several live central elements. You can see some examples like the point, our service desk on the top right-hand side, but you can also read some other examples that we will be adding in 2026 to turn Knauf-Schmiede into a full service center. Polderplein, that's an asset we acquired in Hoofddorp back in 2023. It was the missing part of the shopping center in Hoofddorp that we added back then. Now we own the complete shopping center for 100% and we've now started the works to also turn the acquired part into a full service center. You can see some examples on the bottom left-hand side of the slide. Hoofddorp is one of our best locations in the Netherlands from an economic and demographic point of view. So we're happy with the results so far. Statsart Soutermeer we acquired in June 25. We already communicated on that. And also Statsart Soutermeer will be turned into a full-service center. Even though this asset is in a joint venture, we're the manager of that asset. And also this asset, you can see it in the map on the top right-hand side of this sheet, will be turned over the coming years into a full-service center with, amongst others, addition of health, a fresh cluster, and self-expression. Then some numbers on Knauf Pommerloch and Schmiede. We bought those in the beginning of 2025. For example, in Pommerloch, we signed a new lease with Jack and Jones in the former Casa unit. When we acquired this center, we already talked with analysts and investors about the reversionary potential. Well, you can see here, plus 54% versus old rent. I'm not sure if this is indicated for all the leases we will be doing in Pomerloch, but I think it's a nice example. In Sweden, we've extended with MediMarket and Veritas. And last but not least, we realized a very nice valuation uplift in 2025. Dennis will tell you more later. Then on the CAPEX, we changed this slide a little bit. Until now, we always showed you the initial about 300 million CAPEX program for the Life Central Strategy, as Dennis said, starting in 2020. But most of those transformations, the original ones, have been completed. What you can see in the dark blue bar on the left-hand side, the 25 million, That is the last part of the original 300 million program, but we've added about 36 million for the acquired assets in the meantime. That is Boulderplein, that's the two centers in Luxembourg, and that is also Vilde in Charleroi. And this is why the number has gone up a bit to 61 million, but you can see over the coming years it's nicely spread, and most of it is still uncommitted, so if something happens, If a big event happens in the global market or in the global economy, we're well prepared to scale down the capex. Capital allocation, our IRR framework, which we base on the Green Street Unleveraged European Retail IRR, which now stands at 7.1%. We still set the bar at 8, almost 100 basis points above that threshold. What you can see is that most of our assets, also the acquired assets, of course, tick the box. We have one asset on hold. One asset is at the moment in the cell bucket. That is in Genk because it's not reaching the required IRR, so we're working hard on that. The yield shift, as you can see, most of the assets, most of the completed full service centers have outperformed the market in terms of yield development. And then lastly, on residential profits, this is, as we've mentioned earlier, it's the icing on the cake, a little bit of icing on the cake. Last year, we realized a payment of 3 million for the building rights in Tilburg, as you can see on the right-hand side. So that is a nice achievement. In the coming years, we expect the payments for Nivelle, which is a larger one of about 7 to 8 million euros, which will be coming. And also, of course, Kronenburg, which is our biggest project I just mentioned, Phase 1. With that, I'd like to hand over back to Dennis.