Hyprop Investments Limited · JSE:HYP

Hyprop Investments — H1 2009 Earnings Presentation

30 slides from Hyprop Investments's earnings presentation, June 2009

  1. Slide 1: Interim results for the six months ended 30 June 2009

    Interim results for the six months ended 30 June 2009 1

  2. Slide 2:  CEO Introduction  Financial Review  Operational Performance

     CEO Introduction  Financial Review  Operational Performance  Developments  Shopping Centre Review  Conclusion 2

  3. Slide 3: Snapshot

    Snapshot  Premium quality shopping centres – 20-year track record  Sustainable lease profile  Active property asset management by experienced team  6 shopping centres across 3 provinces – 79% of revenue  Retail space 341 000m² / Office space 44 000m²  Expansion programme to enhance portfolio 

  4. Slide 4: Highlights

    Highlights  Distribution 161 cents 7,3% Distribution growth  NAV (excl. deferred tax) R49,19 400 Cents per combined unit 328―332* ―28% premium to closing unit price 350 300 250  Strong balance sheet 200 150  Gearing 12% 100 50 0  R660m expansion programme 2004 2005 2006 2007 2008 2009 * Forecas

  5. Slide 5: Financial Review

    Financial Review GiILlIWIT STNAWLSAANI dOUdAH

  6. Slide 6: Income Statement ― extracts

    Income Statement ― extracts 30 June 2009 30 June 2008 Rm Rm Revenue 423 361 17% Investment Property 363 311 17% Sycom 60 50 20% Property expenses (114) (92) 25% Net property income 309 269 14% Other operating expenses (23) (20) 13% Operating income 286 249 15% Net interest (25) (4) Net operating inc

  7. Slide 7: Net income* ― Investment Property

    Net income* ― Investment Property Rm 140 120 10% 30 June 30 June % 2008 2009 Change 100 Net income* 202.5 222.9 10% 80 60 9% 8% 40 16% 20 5% 0 Canal Hyde The The Mall of Southcoast Walk Park Glen Rosebank Mall * Like-for-like 7

  8. Slide 8: Balance Sheet - extracts

    Balance Sheet - extracts 30 June 2009 30 June 2008 Rbn Rbn Investment property 8.2 7.7 7% Sycom 1.2 1.4 -13% VPIF 0.2 0.2 Other assets 0.4 0.2 Total assets 10.0 9.5 5% Combined unitholders funds 6.8 6.9 -1% Long-term loans 1.4 0.9 Gearing 12.1% 8.9% Net Asset Value (R) 41.14 41.56 Net Asset Value 49

  9. Slide 9: Valuations

    Valuations Size Hyprop share Total value per Property (m²) (Rm) rentable area (R/m²) Canal Walk (80%) 135 271 3 527 32 591 The Glen (75.15%) 55 729 1 087 25 957 Hyde Park 36 894 1 219 33 028 The Mall of Rosebank 33 774 900 26 648 Southcoast Mall (50%) 29 361 160 10 899 Stoneridge (90%) 50 241 446 9

  10. Slide 10: Borrowings

    Borrowings 30 June 2009 30 June 2008 Net borrowings R1,16 billion R496m Average interest rate 9,38% 9,54% Gearing 12,1% 6% Debt at fixed rates 96% 100% Length of fixes 3-5 years 3-5 years 10

  11. Slide 11: Operational Performance

    Operational Performance 11

  12. Slide 12: Investments by income

    Investments by income Hyde Park The Glen The Mall of Rosebank 12% 11% 11% Southcoast Mall 2% 4% Stoneridge 4% Offices 35% 19% 2% Sycom Canal Walk VPIF 12

  13. Slide 13: Revenue spread

    Revenue spread Office income Operating cost recovery 4% 12% Customer parking 5% 2% Monthly parking 15% Municipal cost recovery 1% 59% 2% Turnover rent Storerooms & other Retail income 13

  14. Slide 14: Vacancies

    Vacancies Stoneridge (10 519m²) Canal Walk & Offices (2 712m²) 17% The Glen (372m²) 65% 2% 4% Hyde Park & Offices (720m²) 6% The Mall of Rosebank & Offices (917m²) 6% Southcoast Mall (996m²)  Total vacancy increase from 3.3% (Dec 08) to 4.4% (June 09)  Hyde Park & The Grace offices have no vacanci

  15. Slide 15: New leases

    New leases Concluded in the period 1 Jan – 30 June 2009 New Total Renewal leases Number of Leases 164 105 59 Contractual value of leases (Rm) 271 161 109 Lettable Area (m2) 21 048 12 249 8 799 Average growth 9.6% 8.2% Average escalation 9.6% 9.2% 15

  16. Slide 16: Hyprop lease renewal schedule

    Hyprop lease renewal schedule % 70 Canal Walk 70 The Glen 60 Hyde Park 56 50 The Mall of Rosebank Stoneridge 48 40 Southcoast Mall 40 38 35 30 32 24 25 20 19 18 19 17 10 14 15 13 14 11 11 11 12 9 7 7 0 5 0 4 1 4 0 2009 2010 2011 2012 2013+ 16

  17. Slide 17: Lease exposure

    Lease exposure Top 10 retailers as a % of GLA 0 1 2 3 4 5 6 7 8 9% Edcon Pick 'n Pay Woolworths Shoprite Checkers Mr Price Group Foshini NuMetro Truworths Stuttafords Pepkor 17

  18. Slide 18: Trading performance

    Trading performance Jan – Jun Q1 Q2 2009 Retail turnover 1% 3% 0.5% Shopper flow -5% -8% -2% Spend per head R123 7% R123 12% R122 2%  Construction work at The Glen & Hyde Park on track  New retail pods at Canal Walk completed  Net rental : retail turnover 7% 18

  19. Slide 19: Developments

    Developments 19

  20. Slide 20: Expansions

    Expansions Southern Canal The Sun Rm Walk Glen Hyde Park Total Capital cost 201 279 180 660 (Hyprop share) Spent to 30 June 2009 (177) (168) (112) (457) To be spent 24 111 68 203 Size 15 541m² 19 400m² 132 rooms Budgeted initial yield (%) 8.1 10.9 11.4 Completion date Complete Nov 09 Sep 09  Canal

  21. Slide 21: Shopping Centre Review

    Shopping Centre Review 21

  22. Slide 22: Canal Walk

    Canal Walk Market valuation R4.6bn  Improved offering ― Hi-Fi Corporation; Golfers Club; GLA 135 271m² Cape Union Mart; @ Home Living Space; Vacancy 2% Urban Living; Bride & Co; Sports Direct Turnover +3%  Food Court - new outlets & refurb.  La Piazza upgrade Shopper flow -3%  Major renewal cycl

  23. Slide 23: The Glen

    The Glen Market valuation R1.7bn  Improved offering GLA 55 729m² ― Game; DisChem; Incredible Connection; Hi-Fi Corporation; Mr Price Home; Vacancy 1% @Home; Wetherleys; Coricraft Turnover -4%  Super-regional status Shopper flow -6%  Positive impact on existing tenant turnover & rental Spend per h

  24. Slide 24: Hyde Park

    Hyde Park Market valuation R1.3bn  Positive impact of hotel on retail GLA 36 894m² spend Vacancy 2%  Stuttafords conversion to Dion Wired Turnover +1% Shopper flow -12%  Centre upgrade Spend per head R164 24

  25. Slide 25: The Mall of Rosebank

    The Mall of Rosebank Market valuation R900m  Planet Fitness opening in Oct 2009 GLA 33 774m²  Precinct redevelopment Vacancy 2% Turnover 0%  Incorporating Cradock Heights & Rosebank Gardens Shopper flow -7% Spend per head R58  Including mall extensions & refurb. 25

  26. Slide 26: Stoneridge

    Stoneridge Market valuation R495m  Management focus GLA 50 241m²  Tenant mix strategy Vacancy 21%  Leasing broker to focus on vacancies Turnover N/A  Retail consultant to assist Shopper flow N/A independents  Improved access roads  Sale of hotel site to Southern Sun 26

  27. Slide 27: Southcoast Mall

    Southcoast Mall Market valuation R320m  Positioning relative to Shelly Centre GLA 29 361m²  Tenant mix focus Vacancy 3.4%  Engen Garage under construction Turnover +9% Shopper flow -  Surrounding node development Spend per head R 100 27

  28. Slide 28: Conclusion

    Conclusion 28

  29. Slide 29: Conclusion

    Conclusion  Premium retail properties  Sustainable lease profile  Strong management ― Experienced team with specialist knowledge ― Redefine (ex-Madison) consultancy agreement  Forecast distribution for six months to Dec 09: 167-171 cents per combined unit

  30. Slide 30: HYPROP

    HYPROP 30

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