Fairvest Limited Class A · JSE:FTA
Fairvest Limited Class A — Corporate Update (March 2022)
19 slides from Fairvest Limited Class A's corporate update, Mar 23, 2022
Slide 1: Pre-Close & Operational Update
PRE-CLOSE & Operational update 23 March 2022
Slide 2: Agenda
AGENDA ➢ Way Forward ➢ Business Update ➢ Operational Update ➢ Financial Update
Slide 3: Way Forward
WAY FORWARD Darren Wilder | CEO
Slide 4: Way forward
Way forward ➢Looking at the drivers of Indluplace’s performance and Fairvest’s strategy for its investment ➢Have evaluated Arrowhead’s approach to disposals and believe deals should be approached differently ➢We believe that specialization contributes to outperformance ➢However, for each of Fairvest
Slide 5: Business Update
BUSINESS UPDATE Limire
Slide 6: Fairvest At A Glance
Fairvest At A Glance PORTFOLIO REIT ASSETS VALUE ➢Diverse South African ➢R11.8 billion ➢145 properties focused (excl Indluplace)
Slide 7: Fairvest At A Glance
Fairvest At A Glance SECTORAL GLA INVESTMENTS SPLIT BY VALUE ➢67% Retail ➢8.6% in Dipula ➢1 176 474m² ➢23% Office ➢61% in Indluplace ➢10% Industrial
Slide 8: Fairvest At A Glance
Fairvest At A Glance YTD Net Asset Value 45% 5,5 40% 5 35% 4,5 30% 4 25% 3,5 20% 3 15% 2,5 10% 2 5% 1,5 0% 1 Axis Title Discount to NAV NAV per RLP * Note that the NAV per B-share used for the above analysis is 519cps as published in the revised listing particulars on 10 Dec 2021
Slide 9: Geographical Split
Geographical Split Limpopo North West GLA: 7.1% GLA: 4.2% Assets: 18 Assets: 6 Mpumalanga Gauteng GLA: 1.5% GLA: 50.3% Assets: 3 Assets: 68 KwaZulu Natal Northern Cape GLA: 11.1% GLA: 2.8% Assets: 16 Assets: 4 Free State GLA: 2.9% Western Cape Assets: 5 Eastern Cape GLA: 12.5% GLA: 7.6% Assets: 15 A
Slide 10: Operational Update
OPERATIONAL UPDATE
Slide 11: Fairvest Portfolio
Fairvest Portfolio Vacancy Market Update ➢ 8.3% as at 28 February 2022 ➢ Industrial: two major redevelopments currently underway. New Leases ➢ 33 898m² of new leases concluded with ➢ Office: first residential conversion near an average lease period of 2.5 years completion. ➢ 38% retail, 23% office a
Slide 12: Retail Portfolio
Retail Portfolio Vacancy Tenant Grading ➢ 5.2% as at 28 February 2022 ➢ A Grade at 65.5% ➢ B Grade at 12.1% New Leases ➢ C Grade at 22.4% ➢ 12 998m² new leases concluded with an average lease period of 3.7 years Market Update ➢ Built in escalations expected to improve, ➢ Rural retail remains defensi
Slide 13: Office Portfolio
Office Portfolio Vacancy Market Update ➢ 17.6% as at 28 February 2022 ➢ An increase in the number of office space enquiries. New Leases ➢ 7 703m² new leases concluded with an average ➢ More optimism from tenants as they are lease period of 2.1 years cautiously taking up additional space. ➢ built in
Slide 14: Industrial Portfolio
Industrial Portfolio Vacancy Market Update ➢ 4.0% as at 28 February 2022 ➢ Strong letting demand continues in the large multi-let industrial parks New Leases ➢ 13 197m² new leases concluded within ➢ Multi Let parks run at 98% occupancy , with the period with an average lease period churn being the o
Slide 15: Disposals Strategy
Disposals Strategy ➢ Year to date we have disposed of 3 non-core assets worth R27.9 million. ➢ Properties left to transfer Property Sector Purchase Value Estimated Name Transfer Date Access City Industrial R43 million Aug – 22 Harley House Office R2.3 million Apr – 22 Maverick Corner Industrial R9.5
Slide 16: Financial Performance
FINANCIAL PERFORMANCE Jacques Kriel | CFO
Slide 17: Loan to Value (LTV) & Loan Facilities
Loan to Value (LTV) & Loan Facilities ➢ LTV expected to be below 40% for interim results. ➢ The company expects to meet all bank covenants comfortably. ➢ Loan facilities to expire worth R1.5 billion by year end. Approx. R1 billion will be refinanced around 31 March 2022. ➢ Approx. R85 million spent
Slide 18: Impact of Civil Unrest
Impact of Civil Unrest ➢ 16 buildings were damaged across the portfolio ➢ Total damages amounted to R62.8 million (including loss of income) ➢ Approximately 65% of our current claims have been paid out ➢ R40.8 million recovered from SASRIA
Slide 19: Thank You Q & A
FAIRY EST LIMITED THANK YOU Q&A