Strategy

Wereldhave focuses on shopping centres in North-West Europe and sustainable offices in Paris. In line with the retail structures in the core countries Belgium, the Netherlands and Finland Wereldhave focuses on convenient shopping with shopping centres that are top-of-mind in catchment areas of at least 100,000 inhabitants within 10 minutes travel time. Wereldhave’s shopping centres offer consumers ‘convenient shopping’: 90% of shopping needs, strong (inter) national tenants, fully embedded food and beverage functions and easy accessibility. In addition, Wereldhave will remain active in the Paris office market with a focus on sustainable offices.

Wereldhave implements its strategy in three phases: Derisk, Regroup and Growth

DERISK (mid 2012 until mid-2013)
During the second half of 2012, Wereldhave focused on the sale of the US portfolio, the action plan for the UK, overhead reduction and the strategy update. The first phase will be completed by mid 2013. After completing this phase Wereldhave has a focused portfolio, a strong balance sheet and low general costs.

REGROUP (mid 2013-2015)
The second phase is aimed at strengthening and expanding Wereldhave’s position in the four core markets through: operational excellence, a controlled development pipeline, value maximisation of the Itis shopping centre, reinvesting in core markets and alignment with all stakeholders. Wereldhave’s activities in Spain are ‘on hold’.

GROWTH (from mid 2015)
After completion of phase II, expected mid-2015, Wereldhave will present a strategy plan for growth.

Phase II: REGROUP (mid 2013-2015)
During this phase, Wereldhave will fully focus on achieving its targets in the following key elements:

1. Operational excellence
- Average retail LFL growth of 125bps above indexation
- ≥98% occupancy
- Overhead reduction to ≤€14m
- Strengthen talent development
-Standardise best practices between core countries

2. Controlled development pipeline
- Retail €330m and offices €110m
- Expected average yield on cost of 6.5%
- From 2015 ≤10% investment portfolio

3. Maximise value It is
- Redevelopment completed mid 2014 within budget (€95m)
- Rent level 2015 €33m, yield on cost of 7%

4. Reinvest in Core markets
- Acquisitions of €400m
- Disposals of €150m

5. Alignment with all stakeholders
- Expand and strengthen Supervisory Board
- Evaluate anti-takeover structure
- Integrate sustainability in overall strategy

After phase II Wereldhave will be an operationally and financially strong player with a clear profile, ready for further growth.

Financing and dividend policy
Wereldhave aims to further expand its diversified funding base while maintaining a Loan- to-Value (LTV) of 30-40%. For 2012 Wereldhave proposes a dividend of € 3.30 per share. Wereldhave expects to maintain the dividend for 2013 at € 3.30 per share, even if this would imply an uncovered dividend. After 2013 Wereldhave will apply a dividend pay-out ratio of 85% of the direct result.