Sa Corporate Real Estate Ltd. · JSE:SAC
Sa Corporate Real Estate — Investor Presentation (June 2024)
16 slides from Sa Corporate Real Estate's investor presentation, Jun 28, 2024
Slide 1: SA Corporate 2024 Interim Pre-Close Update Investor Presentation
SA Corporate 2024 Interim Pre-Close Update Investor Presentation 28 June 2024
Slide 2: Agenda
01 LFL NPI Portfolio Performance 02 Retail Portfolio Performance AGENDA 03 Risk Mitigation Strategy – Pick n Pay Exposure 04 Retail Leasing Update 05 Industrial Portfolio Performance 06 Industrial Leasing Update 07 Afhco / Indluplace Portfolio Performance 08 Zambia Portfolio Performance 09 Financial
Slide 3: LFL NPI Portfolio Performance
LFL NPI PORTFOLIO PERFORMANCE Forecast H1 2024 vs H1 2023 Sector Commentary LFL NPI Growth Largely attributed to annual rental escalations as well as vacancy take-up at 28 Industrial 6.7% Goodwood Road and reversal of bad debt. Upside from Morning Glen take up of tenancy offset by reduced H1 2024 NP
Slide 4: Retail Portfolio Performance
RETAIL PORTFOLIO PERFORMANCE Vacancy Vacancy Anticipated Vacancy Sector Comments 31-Dec-23 31-May-24 30-Jun-24 Reduction from December 2023 due to a decrease in vacancy at Morning Glen and the Bluff Shopping Centre Retail 2.7% 3.4% 2.6% offset by an increase in vacancy at Musgrave Centre due to deve
Slide 5: Retail Leasing Update
RETAIL LEASING UPDATE Strategic Focus Convenience Orientated Retail Portfolio 31-Dec-23 30-Jun-24 2.7% 2.6% VACANCY VACANCY 66.8% 6,721m2 let 68.3% NATIONAL NATIONAL TENANCY TENANCY in H1 2024 63.6% 64.2% CONVENIENCE CONVENIENCE 8 padel courts 10 padel courts SPORTS & 22,031m2 28,857m2 SPORTS & ENTE
Slide 6: Risk Mitigation Strategy – Pick n Pay Exposure
RISK MITIGATION STRATEGY– PICK N PAY EXPOSURE • Pick n Pay (10 supermarkets) occupies 38,680m2 ~ 2.3% of total portfolio GLA and contributes 2.3% towards total portfolio gross revenue. • Umlazi Mega City – Pick n Pay QualiSave – engaging iro rebranding to Boxer store. • Springfield Value Centre – Pi
Slide 7: Industrial Portfolio Performance
INDUSTRIAL PORTFOLIO PERFORMANCE Anticipated Vacancy Vacancy Sector Vacancy 30-June- Comments 31-Dec-23 31-May-24 24 Industrial 0.2% 0.2% 0.2% Minor vacancy of 810m2 at 11 Wankel Street. Retention Anticipated Retention Rate Sector Rate YTD Retention Rate Comments 31-Dec-23 31-May-24 30-June-24 Tenan
Slide 8: Industrial Leasing Update
INDUSTRIAL LEASING UPDATE Strategic Focus Quality Industrial Property Portfolio Lease Renewals • Lease Expiry 2024 – 120,648m2 • % Portfolio GLA – 31.6% Renewed Reversion Renewal H1 2024 94.4% 0.9% FY 24 expiries renewed by 31 May 2024 80.5% 0.8% Negotiations for renewal/re-tenanting of remaining ex
Slide 9: Afhco / Indluplace Portfolio Performance
AFHCO / INDLUPLACE PORTFOLIO PERFORMANCE Vacancy Vacancy Anticipated Vacancy Sector Comments 31-Dec-23 31-May-24 30-Jun-24 Demand for affordable, well managed accommodation Residential - 4.2% 3.4% 3.5% continues. Inner city vacancy forecast to be 2.3% & suburban Afhco 4.5%. Increase in vacancies in
Slide 10: Afhco / Indluplace Portfolio Performance (continued)
AFHCO / INDLUPLACE PORTFOLIO PERFORMANCE (continued) Renewal Renewal Reversion Anticipated Renewal Sector Reversion YTD Reversion Comments 31-Dec-23 31-May-24 30-Jun-24 Reversions continue to improve since year end with Retail - Afhco 0.7% 4.5% 4.0% improved trading conditions which are anticipated
Slide 11: Zambia Portfolio Performance
ZAMBIA PORTFOLIO PERFORMANCE Vacancy Vacancy Anticipated Vacancy Sector Comments 31-Dec-23 31-May-24 30-Jun-24 Increase in vacancy in respect of to 1,302m2 of evicted restaurant tenants. Space subsequently let to East Park Mall 0.7% 3.0% 3.0% 2 pharmaceutical and furniture tenants totaling 575m & in
Slide 12: Zambia Portfolio Performance (continued)
ZAMBIA PORTFOLIO PERFORMANCE (continued) Renewal Renewal Anticipated Renewal Reversion Reversion YTD Reversion Sector Comments 31-Dec-23 31-May-24 30-Jun-24 USD USD USD Hungry Lion, pet store and storage facility leases all East Park Mall 2.8% 0.8% 2.0% anticipated to be renewed at a positive 2.0% r
Slide 13: Financial Sustainability
FINANCIAL SUSTAINABILITY Strategic Focus Financial Sustainability Disposals Update 2024 Disposals Pipeline R725.0 million Previously Contracted R192.2 million Transferred R30.8 million Unconditional R84.3 million Conditional R77.1 million Newly Contracted R29.0 million Transferred R6.7 million Uncon
Slide 14: Unlisted Residential Fund Update
UNLISTED RESIDENTIAL FUND UPDATE • Corporate restructuring completed in December 2023, whilst conveyancing process for select assets continuing. • Term sheets with lender group for restructured debt signed; terms to be effective from investor subscription date. First R1.3 billion Investment Expected
Slide 15: Distribution Guidance
DISTRIBUTION GUIDANCE 2024 H1: • ~ 6% > 2023 H1. 2024 YE: • 5% to 7% > 2023 YE.
Slide 16: { SA CORPORATE AFHCO
{ SA CORPORATE AFHCO OUD reacestate poh
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