Page 1

TK Development

– Interim report Q1-Q2 2012/13

Jelenia GĂłra Poland 24,000 m2


Content 1. Q1-Q2 2012/13

• Financial highlights • Events

2. Focus on selling completed projects 3. Market conditions 4. Project portfolio

• Occupancy rates • Completed projects and debt • Projects in progress and not initiated

5. Outlook

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 2


1. Q1-Q2 2012/13

Futurum Hradec Králové, Czech Republic 28,250 m2

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 3


Q1-Q2 2012/13 at a glance • Profit before tax of DKK -40.0 million (DKK 8.1 million Q1-Q2 2011/12) • including value adjustment of investment properties and impairment of the project portfolio of DKK -37.0 million in total • Profit after tax of DKK -186.6 million (DKK 16.9 million Q1-Q2 2011/12) • Equity of DKK 1,697.7 million (DKK 1,876.4 million at 31 January 2012) • Solvency ratio of 37.4 % (40.4 % at 31 January 2012) • Total balance of DKK 4,538.8 million (DKK 4,639.5 million at 31 January 2012)

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 4


Q1-Q2 2012/13 at a glance • Conditional agreement with Heitman concerning two Polish projects • Handing over of second phase of retail park, Kristianstad, Sweden • Extension to Futurum Hradec Králové, Czech Republic, opened on 10 May 2012 • Fees for letting and construction management from joint venture • Ongoing sales process - Futurum Hradec Králové • Investment property • Value adjustment of DKK -24.3 million (DKK 16.8 million Q1-Q2 2011/12) • Impairment of project portfolio by DKK -12.7 million (DKK 4.6 million Q1-Q2 2011/12)

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 5


Q1-Q2 2012/13 at a glance • Cost-trimming • Full impact achieved on 1 August 2012 • Cost reduction in Q1-Q2 2012/13 compared to Q1-Q2 2011/12 of 18 % • The annual cost reduction target of 20 % at full impact has been met • Impairment of deferred tax assets by DKK 150 million • Bill enacted in June 2012 • Changed rules for tax loss carryforwards • Lengthened time horizon and increased uncertainty • Need for a total impairment of DKK 150 million

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 6


Financial highlights and key ratios Full year 2011/12

Q1-Q2 2011/12

Q1-Q2 2012/13

359.8

172.0

129.3

36.7 195.8 65.5 -83.6 14.3 27.0 27.0

16.8 85.0 20.6 -44.4 8.1 16.9 16.9

-24.3 49.4 -3.6 -37.5 -40.0 -186.6 -186.6

Balance sheet total Total project portfolio Equity

4,639.5 3,498.1 1,876.4

4,521.6 3,407.2 1,881.9

4,538.8 3,615.2 1,697.7

Cash flows from operating activities Net-interest bearing debt, end of period

-78.8 2,244.9

-6.6 2,186.3

-75.0 2,327.6

Key ratios Return on equity (ROE) EBIT margin Solvency ratio (based on equity) Price/book value

1.4 % 18.2 % 40.4 % 0.3

1.8 % 12.0 % 41.6 % 0.5

-20.9 % -2.8 % 37.4 % 0.4

(DKKm) Financial highlights Net revenue Value adjustment investment properties, net Gross profit/loss Operating profit/loss (EBIT) Financing, etc. Profit/loss before tax Profit/loss for the period Shareholders’ share of profit/loss

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 7


NAV per share At 31 July 2012 DKK per share

ASSETS

LIABILITIES

NAV

(4.4)

(107.9)

(-57.7)

4,539

2,429

219

(29.3)

(103.5)

185

100

(2.3)

4,354

(5.2)

96

120

80

(-9.8) (40.4) 412

424

40

2,030

(48.3)

1,698

351

(10.1)

60

1,234

(8.3)

20 0

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 8


Focus on selling completed projects • Free up cash resources • Restore the financial resources • Capital for starting up new projects

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 9


Focus on selling projects Conditional agreement with Heitman regarding two Polish projects – sales value EUR 95 million • comprises Galeria Tarnovia, Tarnów and a new development • • • • • •

project in Jelenia Góra Heitman will take over a 70 % stake in the projects TK Development will realize a minor profit and will free up cash resources future profit as fee income from the jointly owned company the Group’s share of the projects will be classified as investment properties the agreement falls in line with the Group’s adapted business model closing is expected in October 2012

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 10


Focus on selling projects Galeria Tarnovia, Tarnów, Poland • shopping centre of 16,500 m2 • current occupancy rate of 96 % • satisfactory influx of customers and performing well • more than 1.7 million visitors in 2011 • footfall and revenue increased compared to Q1-Q2 2011/12 • included in the agreement with Heitman • sales price in the region of EUR 40 million Major tenants:

Simply Market, H&M, New Yorker, Reserved, Douglas, Rossman og Euro RTV AGD

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 11


Focus on selling projects Jelenia G贸ra, Poland

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 12


Focus on selling projects Jelenia Góra, Poland • new development project • 24,000 m2 shopping centre • construction expected to commence in 2013 • scheduled to open in 2015 • tenants show reasonable interest in the project • included in agreement with Heitman • total project value around EUR 55 million • TK Development will receive fees for development, letting and construction management of the project

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 13


Focus on selling projects Futurum Hradec Králové, Czech Republic • owned in a joint venture with GE Capital and Heitman • extention of 9,950 m2 • construction is completed and the extension openend on 10 May 2012 • the property now comprises 28,250 m2 • current occupancy rate for the whole shopping centre is 99 % • TK Development has received fees for letting and construction management of the extension • sales process is ongoing

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 14


Focus on selling projects Fashion Arena Outlet Center, Prague, Czech Republic • 25,000 m2 outlet centre • ownership share of 75 % • first phase opened in 2007, second phase in 2010 • 7 vacant premises, 93 % let • more than 1.9 million visitors in 2011 • footfall and revenue showed an increasing trend compared to Q1-Q2 2011/12 • sales process ongoing Major tenants:

Nike, Adidas, Tommy Hilfiger, Benetton, Tom Tailor, Gant, Lacoste, Levi Strauss & Co. and others

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 15


2. Market conditions, etc.

Sillebroen

Frederikssund, Denmark

25,000 m2

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 16


Market conditions - GDP (% yr./yr.) 8 6 4

Denmark

2

Sweden Poland

0 -2

2009

2010

2011

2012e 2013e

Czech. Rep.

-4 -6 Source: Nordea, Economic Outlook Source concerning the Czech Republic: The European Commission

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 17


Market conditions •

Land prices, rental levels, construction costs and selling prices have, following the financial crisis, stabilized at a new price level: • •

New projects are expected to be sold at the profits realized before the crisis Projects already completed are expected to be realized at a low profit

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 18


Market conditions - project profitability LAND PRICES

RENTAL LEVELS

PROJECT PROFITABILITY

FINANCING

SELLING PRICES

CONSTRUCTION PRICES

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012

19

19


Market conditions •

Access to financing continues to be difficult for the developer and property sector: • •

Investors are showing cautious optimism and reasonable interest in primelocation projects: • • • • •

Weakened financial sector Long decision-making processes

Focus on risk Slow decision-making processes Institutional investors need options for placing their funds Opportunities for setting up partnerships In line with the Group’s adapted business model

Tenants focus on location: • •

Good amount of interest in prime-location projects Long decision-making processes

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 20


3. The project portfolio

BROEN, shopping centre, Esbjerg, Denmark 29,800 m2

BROENshopping.dk Facebook.com/BROENshopping.dk

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 21


Occupancy rates 2011

2012

Q1-Q2 2012/13

Sillebroen, SC, 25,000 m2, Denmark

93 %

89 %

88 %

Ringsted Outlet, OC, 13,200 m2, Denmark

61 %

59 %

59 %

Aabenraa, RP, 4,200 m2, Denmark

82 %

100%

100 %

BROEN, SC, 28,000 m2, Denmark

50 %

67 %

69 %

-

94 %

94 %

Galeria Tarnovia, SC, 16,500 m2, Poland

98 %

96 %

96 %

Galeria Sandecja, SC, 17,300 m2, Poland

98 %

95 %

96 %

Fashion Arena Outlet Center, OC, 25,000 m2, CZ

85 %

90 %

93 %

Most, RP, 6,400 m2, CZ

84 %

84 %

84 %

Futurum Hradec Králové, SC, 9,950 m2, CZ

84 % *)

97 % *)

99 %

57 %

66 %

Northern Europe

Gävle, RP, 8,200 m2, Sweden Central Europe

Frýdek Místek, SC, 14,800 m2, CZ

-

*) extension only

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 22


Project portfolio and debt Project portfolio, investment properties and net-interest bearing debt

DKKm 4500 4000

1,234

3500

Not initiated

3000

2000

2,328

1500 1000 500 0 31.07.12

cash-flow-generating projects

2500

351

In progress

424

Investment properties

2,030

Completed

31.07.12

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 23


Project portfolio and debt Project portfolio, investment properties and net-interest bearing debt

DKKm 4500 4000

1,234

3500

Not initiated

3000

2000

2,328

1500 1000 500 0 31.07.12

cash-flow-generating projects

2500

351

In progress

424

Investment properties

2,030

Completed

31.07.12

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 24


Completed = DKKm 2,030 Sillebroen

Fashion Arena

Galeria Tarnovia

Galeria Sandecja

Frederikssund Denmark

Tarnów Poland

An annual net rent of DKK 136 million is equal to a return on cost of 6.7 % on the Group’s completed centres

Prague Czech Republic

Nowy Sącz Poland

Most Retail Park Most, Czech Rep.

Retail park, Aabenraa, Denmark

Ringsted Outlet, Denmark

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 25


Project portfolio and debt Project portfolio, investment properties and net-interest bearing debt

DKKm 4500 4000

1,234

3500

Not initiated

3000

2000

2,328

1500 1000 500 0 31.07.12

Cash-flow-generating projects

2500

351

In progress

424

Investment properties

2,030

Completed

31.07.12

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 26


In progress = DKKm 351 Amerika Plads

Mejlstedgade

Copenhagen, Denmark

Brønderslev, Denmark

Underground car park 32,000 m2

Shopping-street property 2,400 m2

Retail park, Gävle, phase I

Residential Park, Bielany, phase I

Retail park 8,200 m2

Residential units 7,850 m2

Gävle, Sweden

Warsaw, Poland

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 27


Project portfolio and debt Project portfolio, investment properties and net-interest bearing debt

DKKm 4500 4000

1,234

3500

Not initiated

3000

2000

2,328

1500 1000 500 0 31.07.12

Cash-flow-generating projects

2500

351

In progress

424

Investment properties

2,030

Completed

31.07.12

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 28


Not initiated = DKKm 1,234 Selected Northern Europe Esbjerg

Amerika Plads (lot A and C)

Shopping centre 29,800 m2

Offices/residential units 24,800 m2

Esbjerg, Denmark

Copenhagen, Denmark

Stuhrs Brygge

Aalborg, Denmark

Mixed 72,000 m2

Østre Teglgade

The Kulan commercial district

Offices/residential units 32,700 m2

Shopping centre/services 45,000 m2

Copenhagen, Denmark

Gothenburg, Sweden

Selected Central Europe Residential Park, Bielany

Bytom Retail Park

Jelenia Góra

Frýdek Místek

Designer Outlet Village Moravia

Residential units/services 48,350 m2

Retail park 25,800 m2

Shopping centre 24,000 m2

Shopping centre 14,800 m2

Outlet centre 21,500 m2

Warsaw, Poland

Bytom, Poland

Jelenia Góra, Poland

Frýdek Místek, Czech Rep. Moravia, Czech Rep.

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 29


4. Outlook

Galeria Tarnovia Tarn贸w, Poland 16.500 m2

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 30


Outlook Management considers it of great importance for the Group to sell additional, completed major projects in the 2012/13 financial year. The sale of major completed projects will generate the cash resources required to underpin future operations and project flow, and thus long-term earnings. In light of the volatility of financial markets, the volume, timing and proceeds of major project sales are subject to uncertainty. Despite this uncertainty, Management expects to sell additional projects in the near future and to generate positive pre-tax results for the 2012/13 financial year. Thus, Management maintains its profit expectations for 2012/13.

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 31


Disclaimer

The expectations mentioned in this announcement, including earnings expectations, are naturally subject to risks and uncertainties, which may result in deviations from the expected results. Expectations may be affected by various factors, as mentioned in the section ”Risk issues” in the Group’s 2011/12 Annual Report.

TK Development . Interim report Q1-Q2 2012/13 . 25 September 2012 32

Q1-2%2012_13_UK_homepage  

http://tk-development.com/Files/Billeder/Issuu/Presentations/Q1-2%2012_13_UK_homepage.pdf

Read more
Read more
Similar to
Popular now
Just for you