Accelerate Property Fund Ltd. · JSE:APF
Accelerate Property Fund — H1 2021 Earnings Presentation
41 slides from Accelerate Property Fund's earnings presentation, December 2020
Slide 1: For the six-month period ended 30 September 2020
FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2020 ACCELERATE
Slide 2: Contents
CONTENTS INTRODUCTION KEY PRIORITIES COVID-19 AT A GLANCE STRENGTHENING THE BALANCE SHEET FINANCIAL RESULTS LEASING CAPITAL AND TREAS PORTFOLIO UPDATE EUROPEAN RETAIL OUTLOOK ACCELERATE PROPERTY FUND 7 10 12 15 18 el 283 31 ACCELERATE PROPERTY FUND INTERIM FINANCIAL RESULTS 2020 1
Slide 3: Introduction
INTRODUCTION
Slide 4: Introduction: Significant impact of COVID-19
ACCELERATE INTRODUCTION SIGNIFICANT IMPACT OF COVID-19 + Pre-COVID-19 South Africa was facing a contracting gross domestic product (GDP) * South Africa’s GDP shrunk by a record 51% in the second quarter of 2020 * South African Reserve Bank (SARB) has reduced interest rates which will significantly r
Slide 5: Key priorities
KE ORE TES ——s
Slide 6: Key priorities
KEY PRIORITIES TREASURY + Strengthen balance sheet * Deleveraging through non- core disposals and cash retention * Reduction of cost of funding * Optimising debt and swap expiry profiles PROPERTY MANAGEMENT * Unlocking value through strategic capex spend * Long-term sustainability: — Re-assessing te
Slide 7: COVID-19
19 COVID
Slide 8: Rental collections
ACCELERATE RENTAL COLLECTIONS RENTAL COLLECTION PERCENTAGES (based on full rental billed) + April 2020: 61% + May 2020: 49% * June 2020: 61% + July 2020: 65% * August 2020: 71% + September 2020: 80% European retail portfolio: all stores have been fully trading since mid-May, with OBI paying rental i
Slide 9: At a glance
Slide 10: Snapshot as at September 2020
ACCELERATE SNAPSHOT AS AT 30 SEPTEMBER 2020 Property portfolio Asset value: R12,6 billion t fil A - Large national 52,9% be otros) B - National listed/franchises 27,9% Fourways*** 175 451 m* ° C- Other 19,2% Charles Crescent - Sandton 47692 m* Strategic nodes Foreshore - Cape Town S2 152 m* George 2
Slide 11: Strengthening the balance sheet
BALANCE SHEET aie ie bag... Pepe: RY ON
Slide 12: Balance sheet strengthening initiative
BALANCE SHEET STRENGTHENING INITIATIVE GOALS + Reduction of overall debt levels * Long-term Fund LTV of 40% * Ensure ICRs are comfortably over 2,0 times LEVERS + Sale of non-core assets and repayment of debt * Retention of September 2020 and March 2021 distributions * Unlocking further value on exis
Slide 13: Financial results
FINANCIAL RESULTS
Slide 14: Consolidated statement of financial position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 30 Sept 2020 31 March 2020 (R‘000) (R‘000) ASSETS Non-current assets 12 410 750 12 373 281 Investment property 12 270 674 12 231279 Right-of-use asset 139 820 141676 Equipment 256 326 Current assets 651 915 564 671 Trade and other receivables 58e 304 5311
Slide 15: Consolidated statement of comprehensive income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 30 Sept 2020 30 Sept 2019 (R‘000) (R‘000) Revenue, excl. straight-line rental revenue adjustment 511648 564 423 COVID-19 rental assistance (100 086) - Straight-line rental revenue adjustment 4350 (9 390) Revenue 415 912 555 033 Property expenses (159 14
Slide 16: Leasing
LEASING
Slide 17: Lease expiry profile, escalations and rental reversions
LEASE EXPIRY PROFILE, ESCALATIONS AND RENTAL REVERSIONS LEASE EXPIRY PROFILE BY GROSS RENTAL Sept 24 eee — Sept 24 ep = Sept 23 ep _— a Sept 2] Fim 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% Sept 22 Retail m Office mIndustrial 84,0 % by Offshore mi Fourways Mall Tenant retention Tenant arrears 120+days SO da
Slide 18: Vacancy profile
VACANCY PROFILE VACANCIES AS AT 30 September 2020 (% of GLA) # Total portfolio European retail # Retail ce industri! TT 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 30 September 2019 ™30 September 2020 Vacancies shown above exclude vacant areas under head lease at Fourways Mall. Vacancies also exclude pr
Slide 19: Capital and treasury management
Slide 20: Long-term debt
ACCELERATE LONG-TERM DEBT LONG-TERM DEBT FUNDING MATURITY PROFILE (RM) Long-term 31 March 2020 31 March 2020 debt allocation (Rm) (%) (Rm) (%) Debt capital markets 1733 28,2 1785 29,6 Bank funding 4424 71,8 4239 70,4 Total 6157 100,0 6 024 100,0 WA debt term (years) 25 22 _—— Short-term portion of d
Slide 21: Covenant changes
COVENANT CHANGES TEMPORARY COVENANT CHANGES NEGOTIATED + To create headroom in case of temporary income and property valuation fluctuations due to COVID-19 * The changes are as follows: ACCELERATE 30 September 31 March 30 September Measurement period ending covenant 2020 20e1 20e1 Thereafter LTV rat
Slide 22: Portfolio update
Slide 23: Fourways Mall
ACCELERATE FOURWAYS MALL TRADING AREAS OF FOCUS * The bulk of tenants at Fourways Mall are open and trading + Repurposing space * Ster-Kinekor now open * Optimising tenant mix * Bounce and Hamleys opened on 1 December 2020 * Utilisation of bulk for residential/office * New Edcon lease with Retailabi
Slide 24: Fourways Mall continued: awards and marketing
ACCELERATE PROPERTY FUND FOURWAYS MALL continued MULTIPLE AWARDS WON — Mix FM outside broadcast and grand prize giveaway of gift cards on Black Friday weekend; + Fourways Mall made a clean sweep at the Africa Property — Strategic content creation for tenants on social media Awards winning the follow
Slide 25: Fourways Mall: tenants and entertainment
FOURWAYS MALL KIDZANIA Negotiations ongoing for completion and opening HAMLEYS Opened 1 December 2020 BOUNCE Opened 1 December Unique and successful concept negatively affected by COVID-19 not the economy ADVENTURE GOLF Open and trading Outdoor element more conducive to social distancing and COVID-1
Slide 26: Fourways Mall: resilience during COVID-19 and beyond
FOURWAYS MALL continued RESILIENCE DURING COVID-19 AND BEYOND ACCELERATE GREATER RETENTION OF CATCHMENT AREA * Original Fourways Mall had limited offering for customers * The newly completed mall has an extensive tenant offering the equivalent to any other super-regional shopping center * The Mall h
Slide 27: Cedar Square
ACCELERATE CEDAR SQUARE * Repositioned for lifestyle and convenience + Provides tenants and shoppers with an open and outdoor feel * The open layout is extremely beneficial to implementation of COVID-19 distancing measures * Builders Warehouse revamped * Supermarkets and health offerings trading exc
Slide 28: Eden Meander
ACCELERATE EDEN MEANDER * Since being acquired by APF during 2016 Eden Meander has come into its own with year on year double digit growth in both turnovers and trading densities + Year to date trading densities up 14,6% versus prior year * All tenants at Eden Meander are now open and trading post l
Slide 29: European retail
Slide 30: OBI performance
OBI PERFORMANCE Fair value at Tenant turnover growth year on year ACCELERATE 30 September Fair value at 31 December Portfolio Remaining GLA eleyretem 31 March 2020 2019 by rental income lease term Buildings (m?) (€'000) (€'000) (%) (%) (years)* AUSTRIA Wien 3 16 356 43 314 000 43 691000 93,5 40 6,08
Slide 31: OBI performance continued
OBI PERFORMANCE continued <a * Portfolio independently valued annually by CBRE, value confirmed in June 2020 as €92 528 000 at a yield of 6,2% * Critical diversification: — Economic; and — Geographic diversification. * Cross-currency swap valuation improved post 30 September 2020 due to strengthenin
Slide 32: Outlook
Slide 33: Outlook
ACCELERATE PROPERTY FUND OUTLOOK * As per SENS announcement on 7 September 2020 the board had resolved that it would be in the best interest of the company to retain distributions. Accordingly, no distributions will be paid for the reporting periods ending 30 September 2020 and 31 March 2021. * Goin
Slide 34: Annexure I: Property portfolio summary
ANNEXURE i PROPERTY PORTFOLIO SUMMARY er mez, IE an hg OF
Slide 35: Sector and geographic summary
SECTOR AND GEOGRAPHIC SUMMARY SECTOR PROFILE BY REVENUE (%) European retail Retail Industrial Office 612 @ GEOGRAPHIC PROFILE BY REVENUE (%) South Africa 877 Austria Slovakia SECTOR PROFILE BY GLA (%) European retail Retail Industrial 12,4 Office 16,4 24,4 46,8 GEOGRAPHIC PROFILE BY GLA (%) South Af
Slide 36: Tenant profile
ACCELERATE TENANT PROFILE TENANT PROFILE BY REVENUE (%) SINGLE VERSUS MULTI-TENANTED BY GLA (%) A Single Multi a > 27,9 65 / 52.9 A: Large national tenants, large listed tenants and major franchises, including Absa Bank, Capitec Bank, Dis‘Cherm, Edgars, FNB, Foschini, Jet Stores, KPMG, Massmart, Ned
Slide 37: Our Fourways exposure
OUR FOURWAYS EXPOSURE Naty
Slide 38: Our Fourways footprint
ACCELERATE OUR FOURWAYS FOOTPRINT RENGIES Number — Property Fourways Mall BROADACRES AH Leroy Merlin (not owned by APF) Cedar and BMW bulk Cedar Square Shopping Centre BMW Fourways Valleyview Centre Cedar Ave w The Buzz Shopping Centre The Buzz bulk IGAVON AH Waterford S PS sy OSPARK AH OoOMON DOU K
Slide 39: Thank you
THANK YOU INVESTOR RELATIONS Articulate Capital Partners: Morne Reinders Tel: 082 480 4541 Email: morne@articulatepartners.com ACCELERATE PROPERTY FUND INTERIM FINANCIAL RESULTS 2020 38
Slide 40: Disclaimer
ACCELERATE PROPERTY FUND DISCLAIMER This presentation is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published in whole or in part for any other purpose. This presentation does not constitute an of
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