Hyprop Investments Limited · JSE:HYP
Hyprop Investments — FY2024 Earnings Presentation
66 slides from Hyprop Investments's earnings presentation, September 2024
Slide 1: Annual Results Presentation for the year ended 30 June 2024
Annual Results Presentation for the year ended 30 June 2024
Slide 2: Agenda
2 Agenda Progress South Africa Eastern Europe Sub-Saharan Africa Financial results In closing Headlines Key metrics
Slide 3: Progress over the past 5 years
Progress over the past 5 years 3 Group South Africa Eastern Europe Sub-Saharan Africa Non-Tangible Assets Implemented the Hystead Increased exposure in the Two-year redevelopment Protecting value – re-let NTER – good progress Liquidity Event Western Cape – Table Bay project at Skopje City Mall space
Slide 4: Headlines
Headlines 4 Group South Africa Eastern Europe Sub-Saharan Africa Non-Tangible Assets • Distributable income per • Weighted average reversions • Tenants’ turnover up 10% • Signed binding legal • Split the SOKO business share exceeds guidance significantly improved to 5.8% agreements to sell the SSA •
Slide 5: Key metrics
Key metrics 5 Group Distributable income (cps) 3.4 Effect (cents) 405.2 22.1 55.5 Net effect of TBM 3.4 Effect of additional shares 22.1 146.7 11.4% 0 - 500 132.9 Higher interest cost 55.5 8.6% 451.4 Eastern Europe 132.9 370.4 South Africa 240.0 Sub-Saharan Africa (2.5) 252.4 240.0 6.1 (2.5) June 20
Slide 6: Key metrics
Key metrics 6 Group IFRS NAV per share (R) Interest cover ratio (ICR) Loan to value (%) 0.9% 3.61 56 - 66 30 - 40 2-3 63.39 60.32 2.8 2.5 2.8 2.4 36.3 36.4 36.1 37.7 June June June June June June June June June June 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 IFRS NAV Effect of additional shar
Slide 7: South Africa
South Africa Investment property 64% Distributable income 65% Total GLA 73% Woodlands, Gauteng
Slide 8: SA operations - rolling 12 months
SA operations - rolling 12 months 8 Historic statistics updated for most recent available information (incl. Table Bay Mall) Turnover (R’m) Average monthly foot count (m) 2.9% 13.7% 13.7% 5.1% 4.6% 7.9% 5.7% 5.1% 6.4% 5.1% 10 000 – 30 000 4-8 19 781 22 498 25 590 26 899 26 915 6.1 6.4 6.8 7.2 7.2 Ju
Slide 9: SA operations - 5 year trends
SA operations - 5 year trends 9 Excluding Table Bay Mall Turnover (R’m) Rental income (R’m) 1.8% 13.9% 12.9% 4.4% 4.9% 4.4% 4.1% 4.3% 16 000 – 28 000 1 750 – 2 150 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (12 months ending June) (12 months ending June) Hyprop share of Property Portfolio Ave
Slide 10: SA leasing activity – year-to-year
SA leasing activity – year-to-year 10 Table Bay Mall included from April 2024 Reversions (% of area) Retail Office Total Renewal Reversion Rate* (0.9%) (12.4%) (1.5%) (weighted average) * Relates to 13.8% of Portfolio GLA New Deal Reversion Rate^ 23.8% 46.9% 30.5% 0% - 60% (weighted average) ^ Relat
Slide 11: SA leasing activity
SA leasing activity 11 Table Bay Mall included from April 2024 Leasing workload FY2024 (m²) 188 960 0 – 250 000 105 316 Expiries 102 829 24 770 Vacancies 22 625 Vacancies 78 059 Under negotiation 61 019 Under negotiation or load Table a arl arl on pir in dded enewals ew or load 1 ul 0 3 all piries r
Slide 12: Tenants
Tenants 12 South Africa Canal Walk Somerset Mall CapeGate Rosebank Mall Clearwater Mall The Glen Woodlands Hyde Park Corner
Slide 13: Table Bay Mall
13 Table Bay Mall South Africa • Acquired Table Bay Mall on 28 March 2024 for R1.683 billion • Solar PV total additional capex was R46.6 million - R23.3 million included in the purchase price - R23.3 million subsequently • Independent valuation as at 30 June 2024: R1.86 billion Key trading metrics •
Slide 14: Eastern Europe
Eastern Europe Investment property 30% Distributable income 36% Total GLA 20% The Mall, Sofia, Bulgaria
Slide 15: Macroeconomic and retail environment
Macroeconomic and retail environment 15 Real GDP growth (%) CPI (%) 0-4 0-4 Bulgaria Croatia North Macedonia Europe Euro area Bulgaria Croatia North Macedonia Europe Euro area 2024 2025 2026 2027 2028 2024 2025 2026 2027 2028 Unemployment Rate (%) Total shopping density – m2 per 1 000 inhabitants 0
Slide 16: EE operations - rolling 12 months
EE operations - rolling 12 months 16 Historic statistics updated for most recent available information Turnover €’m Effort ratio – portfolio (%) 0.7% 14.5% 15.9% 10.0% 10.3% 0.1% 0.3% 1.0% 0.2% 0.2% 200 - 600 4 - 12 406 465 539 593 599 10.8 10.5 9.5 9.4 9.3 June June June June July June June June Ju
Slide 17: EE operations - rolling 12 months
EE operations - rolling 12 months 17 Historic statistics updated for most recent available information Average foot count (m) Spend per head €/person 11.9% 10.5% 14.5% 1.0% 1.1% 12.7% 3.7% 1.2% 8.8% 9.1% 1.2 – 2.4 14 - 22 1.8 2.0 2.3 2.3 2.3 19.0 19.7 20.0 21.7 21.9 June June June June July June Jun
Slide 18: EE operations - 5 year trends
EE operations - 5 year trends 18 Turnover €’m Rental income €’m 0.7% 14.5% 15.9% 10.0% 3.2% 19.6% 10.1% 8.3% 300 - 700 30 - 70 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 (12 months ending June) (12 months ending June) Indexation - All tenants excl. pure turnover rent (%) Turnover rent €’m 17.
Slide 19: EE leasing activity – year-to-year
EE leasing activity – year-to-year 19 Reversions (% of area) Retail Renewal Reversion Rate* 2.8% (weighted average) * Relates to 14.6% of Portfolio GLA 0% - 60% New Deal Reversion Rate^ 7.6% (weighted average) ^ Relates to 3.5% of Portfolio GLA Overall Reversion Rate# 3.7% (weighted average) 5% # Re
Slide 20: EE leasing activity
EE leasing activity 20 Leasing workload FY2024 (m²) 34 989 22 728 Expiries 0 – 40 000 557 Vacancies 11 704 Under negotiation 740 249 Vacancies (6 506) 491 Under negotiation Workload Early Replacement GLA Added Renewals New Workload 1 July 2023 renewals Tenants Changes Vacancies complete lettings 30
Slide 21: Tenants
Tenants 21 Eastern Europe Skopje City Mall The Mall City Center one East City Center one West
Slide 22: Sub-Saharan Africa
Sub-Saharan Africa Investment property 6% Distributable income (1%) Total GLA 7% West Hills Mall, Ghana
Slide 23: Macroeconomics
Macroeconomics 23 Sub-Saharan Africa as at 30 June Cedi/USD Nigeria Inflation (%) 10 - 30 2 - 18 2017 2018 2019 2020 2021 2022 2023 2024 2016 2017 2018 2019 2020 2021 2022 2023 2024 Naira/USD 3 Month Funding Rate (%) 0 – 2 000 0.0 – 6.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2021 2022 2023 202
Slide 24: SSA trading overview - rolling 12 months
SSA trading overview - rolling 12 months 24 Excluding Ikeja City Mall Turnover $ ’m Turnover Cedi ’m 3.3% 3.1% 24.9% 2.3% 7.7% 10.7% 29.5% 11.7% 500 - 900 20 - 100 94 91 68 70 548 606 785 877 June June June June June June June June 2021 2022 2023 2024 2021 2022 2023 2024 Trading density ($/m2/month)
Slide 25: SSA trading overview - rolling 12 months
SSA trading overview - rolling 12 months 25 Average foot count (m) Retail vacancy (%) 2.4% 3.5% 7.9% 0.6% 1.0 – 2.2 2 - 18 2.0 2.1 1.9 1.9 12.2 10.1 16.8 6.5 June June June June June June June June 2021 2022 2023 2024 2021 2022 2023 2024 Spend per head ($/person) Spend per head (Cedi/person) 7.9% 9.
Slide 26: Disposal process
26 Disposal process • Signed SPA on 7 August 2024 • Due diligence completed • CP fulfilment progressing well Ikeja City Mall, Lagos
Slide 27: Financial results
Financial results Rosebank Precinct, Gauteng
Slide 28: Distributable income
Distributable income 28 Change in distributable income ( ’m) DIPS DIPS 405.2 370.4 South Africa +R6.8 Europe -R20.8 Sub-Saharan Africa -R31.4 201.2 (40.3) 108.2 30.5 1 200 – 1 800 (39.4) Other (50.0) (42.5) 1 450.9 TBM (81.9) (159.3) (22.4) 2.4 6.1 1 405.5 (33.2) (5.0) (1.7) June 2023 Income Operati
Slide 29: Notable items (R'm)
Notable items (R’m) 29 +409 0 – 1 150 +442 695 2 71 (254) (153) 489 369 (185) (32) (442) 1 (107) (62) - realised (92) - unrealised (68) (213) (10) (9) (442) (775) Change in Capex Change in FV Taxation Impairment assets Net foreign Property valuations - derivatives held-for-sale exchange losses SA EE
Slide 30: Sale of SSA assets
Sale of SSA assets 30 Reconciliation between SPA values and held-for-sale carrying values Group Group Held-for-sale Statement of Financial Position R’ Held-for-sale NAV R’ Non-current assets 1 911 832 Net assets classified as held-for-sale 387 555 Investment property 1 529 367 Straight-line rental r
Slide 31: Borrowings profile
Borrowings profile 31 Borrowings by lender Debt exposure by currency (R’m) Standard Bank Group 14.3% LTV 36.3% LTV 36.4% Nedbank 26.1% 15 220 15 763 RMB 12.9% ABSA 32.8% (22) (22) 1 558 1 602 Erste Bank/Raiffeisenlandesbank (1.3%) (1.3%) 2 395 3.3% DSK/OTP Bank (341) (2 989) (4.7%) Komercijalna Bank
Slide 32: Change in LTV
Change in LTV 32 Movement in LTV from 30 June 2023 to 30 June 2024 (%) Forward-looking LTV 2.7% 1.2% 36.3% (1.2%) (0.3%) 36.4% (1.1%) 35.2% 30 - 40 (1.2%) (1.2%) LTV at Table Bay LTV FV of SA and Impairment Exchange Net cash LTV at Sale of Anticipated 30 June 2023 Mall amendments EE properties of SS
Slide 33: Movement in ZAR and EUR borrowings
Movement in ZAR and EUR borrowings 33 Rand equivalent at 30 June 2024 exchange rate ‘ 20 975 14 964 14 833 14 598 15 309 13 814 0 – 25 000 € (7 680) (578) (686) EE LTV 6 943 6 365 48.7% EE LTV 7 629 EE LTV EE LTV 6 943 € € 86.2% € 58.5% 54.5% € (8 944) 1 150 447 553 632 1 303 574 553 267 (98) +2 802
Slide 34: Group borrowings maturity profile
Group borrowings maturity profile 34 Rand equivalent ( ’m) 2 674 850 500 0 – 3 000 250 1 014 974 1 440 1 118 1 099 195 739 200 760 502 500 549 500 483 500 498 390 348 390 425 299 Q4: Q1: Q2: Q3: Q4: Q1: Q2: Q3: Q4: Q1: Q2: Q3: Q4: Q1: Q2: Q3: Q4: Q2: Q2: Q4: Q1: 2024 2025 2025 2025 2025 2026 2026 20
Slide 35: Interest rate profile
Interest rate profile 35 ZAR (%) EUR (%) 10.3 6.1 5.9 10.1 5.9 10.0 4.7 5.1 4.9 9.0 3.9 8.9 8.9 9.4 6 - 11 0-7 3.2 3.9 3.9 8.4 8.5 3.6 8.4 8.4 2.0 7.2 December June December June December June December June 2022 2023 2023 2024 2022 2023 2023 2024 3m Jibar ZAR all-in hedged rate ZAR floating rate + m
Slide 36: Interest rate hedges
Interest rate hedges 36 Includes forward starting hedges ZAR (R’m) 7 318 5 850 0 – 8 000 5 350 3 150 June 2024 June 2025 June 2026 June 2027 Swaps (R3 150m) Caps (R2 200m) All hedges (incl. collars - R500m) Term borrowings EUR (€’m 327 0 - 350 244 June June June June June June June June 2024 2025 20
Slide 37: In closing
In closing The Glen, Gauteng
Slide 38: Our impact
Our impact 38 Environment • 33% reduction in electricity usage since June 2019 • Completed the second phase of the solar PV project at Woodlands, Rosebank Mall and Clearwater Mall (total 5 717 kWp) and solar at Table Bay Mall • Dual fuel gas/diesel powered generator with battery storage at Rosebank
Slide 39: Looking ahead
Looking ahead 39 Creating spaces and connecting people Group South Africa Eastern Europe Sub-Saharan Africa Non-Tangible Assets • Guidance June 2024 • Secure PPAs for the • Secure extension rights at • Implement the Lango deal • Secure further clients for – increase in distributable following solar
Slide 40: Q&A
Q&A Skopje City Mall, Skopje, Macedonia
Slide 41: South African properties
South African properties 41 Portfolio summary Canal Walk Somerset Mall CapeGate Table Bay Mall % Ownership 80% 100% 100% 100% GLA 156 989 70 193 64 755 60 861 Vacancy levels Retail 1.0% 0% 0.1% 3.5% Offices 15.1% Total foot count (12 months) 18.9m 9.3m 9.7m 5.4m
Slide 42: South African properties
South African properties 42 Portfolio summary Rosebank Precinct Clearwater Mall The Glen Woodlands Hyde Park Corner % Ownership 100% 100% 75.15% 100% 100% GLA 91 036 85 762 78 732 73 496 38 976 Vacancy levels Retail 3.7% 3.2% 2.6% 0.4% Retail 4.7% Offices 19.4%* Office 39.1% Total foot count (12 mon
Slide 43: Top 10 tenant groups by GLA
Top 10 tenant groups by GLA 43 South Africa at 30 June 2024 % of total GLA 8.3% 8.0% 7.5% 7.4% 7.0% 6.6% 6.0% 5.7% 0% - 10% 4.8% 5.1% 4.6% 4.2% 4.0% 4.1% 3.8% 3.8% 2.2% 2.3% 2.3% 2.1% Woolworths Pick 'n Pay Foschini Group Retailability Shoprite Holdings Massmart Mr Price Group Pepkor Holdings Dis-Ch
Slide 44: Trading performance
Trading performance 44 South African portfolio (including Table Bay Mall historically) % of reported Trading density Total Primary category growth turnover GLA Department Stores: Clicks, Dis-Chem, Edgars, Game, Woolworths 2.9% 25.5% 24.3% Apparel: Mr Price, Foschini, Truworths 5.3% 18.3% 20.5% Food:
Slide 45: Leasing activity
Leasing activity 45 South African portfolio (Table Bay Mall included from April 2024) New lettings and renewals Renewal Weighted Rental reversion as Average of retention Gross % of Total Rentable Average % of average Contractual Lease Period rate by nr of Lettable Area Portfolio GLA Leasing Area (m2
Slide 46: SA operations - 12 months ending 30 June 2024
SA operations - 12 months ending 30 June 2024 46 Historic statistics updated for most recent available information Tenants’ Turnover R’m) Effort ratio (%) 4.4% 1.1% 6.0% 10.9% 6.1% 4.7% 1.8% 14.2% 2.7% 0.2% 0.6% 0.2% 0.4% 0.0% 0.0% 0.3% 0.4% 4% - 12% 0 – 8 000 7 784 3 066 3 025 2 571 2 405 2 322 2 2
Slide 47: Operations
Operations 47 South Africa Cost to income (%) 46.0 45.5 0.4 2.9 3.0 1.7 1.8 2.1 2.5 3.9 3.7 4.9 Changes in expected credit losses 5.0 Management and other costs 0 - 50 Maintenance Depreciation and amortisation Salaries and staff-related expenses 30.5 29.1 Contractual services Utility cost 2023 2024
Slide 48: SA valuations bridge (R'm)
SA valuations bridge (R’m) 48 2.8% 689 2.9% 3.0% 0.7% 2.7% 4.6% 5.9% 7.6% 7.5% 7.4% 128 25 452 150 76 111 87 105 24 500 – 25 500 (11) (159) 202 24 763* June 2023 Canal Walk Clearwater The Glen Somerset Woodlands Rosebank^ Hyde Park CapeGate Table Bay June 2024 Mall Precinct Corner Mall ^ Rosebank Pr
Slide 49: SA current projects
SA current projects 49 Mall Project Completion date Cost/Budget Yield Status Somerset Mall New Checkers FreshX November 2023 R91 600 000 - Complete Updated to December 2023 Canal Walk Freedom Adventure Park R16 000 000 17.1% Complete due to tenant’s fundin dela Woodlands 3 drive-thru’s August 2023 R
Slide 50: Eastern Europe properties
Eastern Europe properties 50 Portfolio summary The Mall City Center one East City Center one West Skopje City Mall Sofia, Bulgaria Zagreb, Croatia Zagreb, Croatia Skopje, Macedonia % Ownership 100% 100% 100% 100% GLA 61 577 47 260 42 080 36 818 Vacancy levels 0.4% 0.0% 0.0% 0.0% Total foot count (12
Slide 51: Top 10 tenant groups by GLA
Top 10 tenant groups by GLA 51 Eastern Europe at 30 June 2024 % of total GLA 7.2% 7.2% 7.1% 7.1% 5.7% 5.7% 0% - 10% 4.5% 4.0% 3.7% 3.5% 2.9% 2.9% 2.4% 2.4% 2.3% 2.3% 2.0% 2.0% 1.9% 1.9% Interspar Inditex Peek & H&M LPP Cineplexx C&A Müller Arena Elipso Cloppenburg Drogeriemarkt June 2023 June 2024 %
Slide 52: EE operations - 12 months ending 30 June 2024
EE operations - 12 months ending 30 June 2024 52 Historic statistics updated for most recent available information Turnover €’m Effort ratio (%) 10.9% 11.4% 8.4% 7.5% 0.1% 0.4% 0.2% 0.4% 2 - 14 0 - 200 185 185 118 105 8.4 8.4 12.2 9.6 City Center one East City Center one West The Mall Skopje City Ma
Slide 53: Trading performance
Trading performance 53 Eastern Europe portfolio % of reported Trading density Total Primary category growth turnover GLA Apparel: Peek & Cloppenburg, H&M, Zara, C&A 6.3% 36.0% 46.1% Food: Raffy Restaurant, Interspar, Billa, Ramstore 7.7% 11.3% 12.7% Shoes: Mat Star, Humanic, Deichmann, CCC 11.7% 6.3
Slide 54: Leasing activity
Leasing activity 54 Eastern Europe New lettings and renewals Weighted Rental reversion Rentable Average as % of average Average Average lease Gross lettable % of total Leasing Area (m2) Reversion monthly rental indexation duration (years) area (m2) portfolio Retail 33 947 3.7% 21.5% 4.2% 4.4 187 735
Slide 55: Operations
Operations 55 Eastern Europe Cost to income (%) 39.8 36.9 9.0 6.5 2.8 2.5 Management and other costs 3.4 4.3 Maintenance 0 - 45 2.1 Depreciation and amortisation 2.1 4.5 Salaries and staff-related expenses 6.9 Contractual services Utility cost 18.0 14.6 2023 2024 Year ended 30 June
Slide 56: Europe valuations bridge (€m)
Europe valuations bridge (€m 56 6.1% 35.3 10.2% 2.2% 7.3% 12.0% 18.9 610.0 560 - 620 11.1 9.2 (3.9) 574.7 une 0 3 S op e it all The all Sofia o ast a reb o est a reb une 0 4 Increase Decrease Valuations per independent valuers at 100%
Slide 57: EE current projects
EE current projects 57 Mall Project Completion date Cost/Budget Yield Status Defensive Skopje City Mall New H&M store March 2024 € 700 000 Complete spend The Mall, Sofia LED lighting upgrade Q3 2025 (3 phases) €650 000 TBC Underway Food court expansion and City Center one West September 2024 €708 00
Slide 58: Sub-Saharan Africa properties
Sub-Saharan Africa properties 58 Portfolio summary West Hills Mall Ikeja City Mall Accra Mall Kumasi City Mall % Ownership 58.8%* 75.0% 47.0%* 98.0%* GLA 28 272 22 223 21 311 18 534 Vacancy levels 15.1% 2.1% 1.0% 4.9% Total foot count (12 months) 4.7m 5.1m 5.5m 7.6m * AttAfrica's share in these asse
Slide 59: SSA operations - 12 months ending 30 June 2024
SSA operations - 12 months ending 30 June 2024 59 Historic statistics updated for most recent available information Turnover $’m Turnover Cedi ’m 3.1% 10.7% 8.8% 12.5% 21.7% 0.8% 100 - 500 0 - 40 39 17 13 494 214 168 Accra Mall West Hills Mall Kumasi City Mall Accra Mall West Hills Mall Kumasi City
Slide 60: LTV and ICR calculations
LTV and ICR calculations 60 ( ’000) 30 June 2023 30 June 2024 LTV Calculations Hyprop LTV SA REIT LTV Hyprop LTV SA REIT LTV Hyprop total assets 40 618 877 40 618 877 39 870 697 39 870 697 Goodwill and intangible assets (112) (58) (1 175) (59) Cash and cash equivalents (802 995) (802 995) (1 201 103
Slide 61: Interest rate profile
Interest rate profile 61 Interest rate exposure hedged (%) Average tenure at 30 June 2024 (years) Interest cover ratio 1.9 Rand 2.6 1 122m 2.5 2.1 0 - 120 times Euro 4.2 1 651m 0.7 US Dollar 2.7 83 80 89 80 75 75 102 108 Total ZAR EUR USD 0.5 – 4.5 June 2023 June 2024 Borrowings Interest rate hedges
Slide 62: Interest rate hedges
Interest rate hedges 62 ZAR interest rates (%) EUR interest rates (%) 10.3 10.0 8.9 9.4 5.9 5.9 1.8 1.6 4.9 1.6 0 - 12 0-7 1.8 2.3 2.0 3.9 2.0 2.3 8.5 7.1 8.4 7.8 3.6 1.6 3.9 2.9 Floating base rate Hedged base rate Floating base rate Hedged base rate Floating base rate Hedged base rate Floating base
Slide 63: Portfolio treasury metrics
Portfolio treasury metrics 63 as at June 2024 June 2024 June 2023 South African debt (ZAR’m) Property value ( ’bn) 25.4 23.0 LTV 29.4% 25.5% 0 – 2 000 1 118 850 1 099 Weighted average cost of debt (incl. hedges) 9.4% 8.9% 200 Weighted average loan tenor 2.6 2.6 250 Proportion of debt hedged 80% 89%
Slide 64: Equity bridge
Equity bridge 64 Hyprop Group ( ’m) 409 1 227 (185) 264 (442) (269) (255) 498 19 22 893 20 000 – 25 000 22 700 (1 073) NAV June Net operating Property Derivative FV AttAfrica FCTR Non-controlling Tax Distribution Share Other NAV June 2023 income revaluation adjustment impairment interest issue 2024
Slide 65: Disclaimer
Disclaimer 65 Forward looking statements This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements beliefs or opinions includin statements with respect to the compan ’s business financial condition and results of operations. T
Slide 66: Investor Relations
Investor Relations Boitumelo Nkambule - boitumelo@hyprop.co.za