Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Corporate Update (March 2022)
22 slides from Vukile Property Fund's corporate update, March 2022
Slide 1: FY22 Pre-Close Presentation
FY22 PRE-CLOSE PRESENTATION MARCH 2022
Slide 2: Agenda
AGENDA 1 INTRODUCTION Laurence Rapp 2 SOUTH AFRICAN PORTFOLIO Itumeleng Mothibeli 3 CASTELLANA PORTFOLIO Alfonso Brunet 4 FINANCE AND TREASURY Laurence Cohen 5 GUIDENCE Laurence Rapp 6 Q&A 2
Slide 3: South African Portfolio
SOUTH AFRICAN PORTFOLIO FY22 PRE-CLOSE PRESENTATION 3
Slide 4: Retail Portfolio Performance and Trading Environment
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT STRONG OVERALL OPERATING AND TRADING METRICS FEB 2022 MAR 2021 FEB 2022 MAR 2021 > Portfolio trading metrics ahead of pre-Covid levels > FY22 turnover average 7.5% higher than comparable period in FY21 > Trading density growth up to 6.6% vs 1.7% a
Slide 5: Footfall and Sales
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT FOOTFALL AND SALES > Sales have rebounded faster than footfall Benchmark prior year Benchmark 2019 / 2020 (Pre-Covid) continuing the trend of larger basket sizes, less Average 107% frequent visits and more focused shopping 116% 113% 111% 112% 109%
Slide 6: Average Trading Densities Showed Growth of 6.6%
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT AVERAGE TRADING DENSITIES SHOWED GROWTH OF 6.6% WITH TURNOVER GROWTH OF 7.5% Restaurants & Restaurants & Bottle Stores Coffee Shops Bottle Stores Coffee Shops Density 14.5% Density 13.5% Density 32.6% Density 21.5% Turnover 14.5% Turnover 13.5% Tu
Slide 7: Retail Category Performance – FY22 vs FY21
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT RETAIL CATEGORY PERFORMANCE – FY22 VS FY21 Fashion Density (0.6%) to 5.7% Turnover (8.9%) to 6.5% Food Density 9.2% to 9.5% Turnover 2.2% to 8.2% Home Furnishings/ Art/ Year-on-year turnover growth Antiques/ Décor Density 14.6% to (0.3%) Turnover
Slide 8: Disposals Update
DISPOSALS UPDATE SOUTH AFRICAN DISPOSALS OF R798M AT AVERAGE YIELD OF 9.8% SOLD AT BOOK VALUE 4 Properties transferred Sales price Transfer during H1 FY22 (Rm) date R521.6m Ulundi King Senzangakona Shopping Centre 308.7 19 Aug 21 Letlhabile Mall 164.2 28 Sep 21 Yield 9.7% Pretoria Rosslyn Warehouse
Slide 9: Castellana Properties
CASTELLANA PROPERTIES FY22 PRE-CLOSE PRESENTATION 9
Slide 10: Economic Update: Spain
ECONOMIC UPDATE: SPAIN > Latest forecast from Bank of Spain estimates 2021 GDP to close at +4.5%, after a -10.8% decline registered in 2020. Growth is expected to accelerate by +5.4% in 2022 and by +3.9% in 2023. However, Russia/Ukraine conflict is making it very challenging for analysts to predict
Slide 11: Update on Covid-19 in Spain
UPDATE ON COVID-19 IN SPAIN C.93% OF POPULATION > 12 YEARS OF AGE COMPLETELY VACCINATED KPIs Evolution of deaths c. 40 million people with vaccination Complete Vaccination Announce completed c. 40 million State of alarm declared ment of de- Spain under curfew (c. 93% of population >12 people – hard
Slide 12: Footfall & Sales
FOOTFALL & SALES > Footfall has started the year 2022 following the positive trend of a year ago. Although we are still 1ST WAVE 2ND WAVE 3RD WAVE 4TH WAVE 5TH WAVE 6TH WAVE 18 120.0% bellow 2019 numbers, we have recovered to the 95% level in January and February 16 100.0% > El Faro (+10.9%), Bahia
Slide 13: Operating Activity
OPERATING ACTIVITY (2) OCCUPANCY RATE 98.4% HUGE EFFORT OF THE TEAM ON CLOSING NEW AGREEMENTS WHILE RETAINING KEY TENANTS KEY KPI´S YTD 28th February 2022 145 €8.3m OCCUPANCY: PORTFOLIO FULLY LET 28 FEBRUARY LEASES SIGNED NEW RENT SIGNED 2022 98.4% 31 AUGUST 2021 97.1% 43 102 €2.5m €5.8m RENEWALS NE
Slide 14: Trading Environment
TRADING ENVIRONMENT > Although sales and footfall have improved a lot over the last few months, they are slightly below 2019. Most of our centres have made a good start to the year. Special mention goes to Habaneras, which closed 2021 at 74.6% of 2019 level, and is now surpassing 2019 figures by 1.8
Slide 15: Balance Sheet Achievements Over Past 12 Months
BALANCE SHEET ACHIEVEMENTS OVER PAST 12 MONTHS CASTELLANA PROPERTIES CASTELLANA PROPERTIES FITCH ASSIGNS CASTELLANA SIGNS €185 MILLION 7-YEAR ACQUIRES 21.7% OF LAR ESPAÑA FIRST-TIME IDR 'BBB-'; OUTLOOK FINANCING AGREEMENT REAL ESTATE STABLE Castellana Properties has signed a €185 million Followi
Slide 16: Finance and Treasury
FINANCE AND TREASURY FY22 PRE-CLOSE PRESENTATION 16
Slide 17: Treasury Update
TREASURY UPDATE > Corporate activity: > In December 2021, Vukile repurchased 3.5 million Castellana shares from MEREV > In January 2022, Castellana acquired 21.7% shareholding in Lar España for a total investment of c.€100m (including costs). The transaction was part funded with €75m shareholder loa
Slide 18: Treasury Update (cont.)
TREASURY UPDATE (CONT.) > Debt expiries in FY2023 - R3.8 bn (23% of debt expiry profile) : > 74% (R2.8bn) of FY2023 expiries have already been or are currently being repaid/refinanced > In March 2022, Castellana refinanced the syndicated loan into a new 7- year €185m facility > R471m of Debt Capital
Slide 19: Accounting for the Investment in Lar España (LAR)
ACCOUNTING FOR THE INVESTMENT IN LAR ESPAÑA (LAR) > The investment in LAR does not meet the criteria for equity accounting in terms of IAS 28 > Therefore, the investment will be accounted for at fair value through other comprehensive income (OCI) > Fair value will be based on the LAR share price at
Slide 20: Recognition of Dividend Income from the Investment in LAR
RECOGNITION OF DIVIDEND INCOME FROM THE INVESTMENT IN LAR > In terms of IFRS and Spanish GAAP, the dividends from LAR will be recognised when the right to receive the dividends has been established, which is essentially when the dividends are declared > LAR pays dividends once per year. The LAR divi
Slide 21: Update to Guidance
UPDATE TO GUIDANCE ˃ At interims we guided an FFO of at least 125cps and DPS of at least 80cps ˃ Given strong trading performance for the year to date, the Company is pleased to update its guidance for the year ending 31 March 2022 as follows: FFO in a range of 130cps to 135cps; and DPS in a ran
Slide 22: Questions & Answers
QUESTIONS & ANSWERS 22