Sa Corporate Real Estate Ltd. · JSE:SAC
Sa Corporate Real Estate — H1 2025 Earnings Presentation
53 slides from Sa Corporate Real Estate's earnings presentation, Sep 19, 2025
Slide 1: SA Corporate 2025 Interim Results Presentation
SA Corporate 2025 Interim Results Presentation 19 September 2025
Slide 2: Agenda
AGENDA 01 Overview Rory Mackey 02 Strategy Update Rory Mackey Portfolio Performance 03 Nomzamo Radebe & Kevin Van Den Heever Financial Performance 04 Sam Moodley 05 Outlook Samson Mojalefa
Slide 3: Overview
OVERVIEW RORY MACKEY | SACORPORATE ‘™aruco f REAL ESTATE foneye
Slide 4: Overview: Distribution and Property Activity
OVERVIEW DISTRIBUTION PROPERTY ACTIVITY DISTRIBUTION / SHARE DISPOSAL PIPELINE SINCE 1 JANUARY 2025 7.5% vs six months to R953.2 million 30 June 2024 (Transferred to 30 June 2025: R379.7 million; Contracted not yet transferred: R573.5 million, of which R194.2 million has transferred after 30 June 20
Slide 5: Overview: Capital Structure
OVERVIEW CAPITAL STRUCTURE ASSETS UNDER MANAGEMENT R19.1 billion (31 December 2024: R19.4 billion) LOAN TO VALUE (“LTV”) RATIO 40.3%* (31 December 2024: 42.0%) *Net debt LTV excluding derivatives, which if included would be 40.4% ( 31 December 2024: 42.0%) WEIGHTED AVERAGE COST OF FUNDING 9.0% 9.1%
Slide 6: Overview: Portfolio Performance
OVERVIEW PORTFOLIO PERFORMANCE TOTAL NET PROPERTY INCOME (‘’NPI’’) TRADITIONAL PORTFOLIO VACANCY INCREASED BY % of gross lettable area (“GLA”) 3.0% to R756.6 million 1.5% (2024 H1 : R734.5 million) (31 December 2024: 1.5%) TOTAL LIKE-FOR-LIKE NPI INCREASED BY RESIDENTIAL PORTFOLIO VACANCY % of total
Slide 7: Strategy Update
y STRATEGY UPDATE RORY MACKEY
Slide 8: Strategic Pillars
STRATEGIC PILLARS Sustainable Distribution Growth & Long Term Capital Appreciation “Best-in-Class” Residential Robust Retail Portfolio Quality Logistics Portfolio Portfolio ▪ Specialising in convenience- ▪ Invested in high-demand, ▪ Focused on inner city precincts oriented shopping centres strategic
Slide 9: Disposal Pipeline
DISPOSAL PIPELINE 1 JANUARY TO 30 JUNE 2025 (31 August 2025) R953.2 MILLION (R1 531 MILLION) TRANSFERRED R379.7 MILLION (R573.9 MILLION) CONTRACTED AND UNCONDITIONAL R319.8 MILLION (R234.8 MILLION) CONTRACTED AND CONDITIONAL R253.7 MILLION (R722.3 MILLION) Non-Core Residential ex-Indluplace Apartmen
Slide 10: Apartment Sales Progress & Forecast
APARTMENT SALES PROGRESS & FORECAST 2025 2026 & 2027 Apartments contracted for sale (OTP) 2025 H1 2025 H2 Number 779 559 Sales value 374 385 141 250 637 252 Apartments transferred 2025 H1 2025 H2 Number 245 534 Sales value 112 774 141 261 611 000 Gain v Cost 39 461 397 90 194 660 Gain v Book 19 147
Slide 11: SA Corporate Positioned to Grow Its Residential Portfolio
SA CORPORATE POSITIONED TO GROW ITS RESIDENTIAL PORTFOLIO Residential rental property is an economy of scale business SA Corporate has the ability to achieve scale through: • “Best of Breed” residential asset & property management platform • Brand value built over almost 30 years • Access to the lar
Slide 12: The Case to Grow the Residential Portfolio
THE CASE TO GROW THE RESIDENTIAL PORTFOLIO Residential REIT Market Cap Share by Country Share of Global Share of Non-Rent-Control Country Residential REITs (%) Residential REITs (%) US represents almost 85% United States 65.86 84.58 of Global Non-Rent-Control Japan 6.87 8.82 Residential REITs Sweden
Slide 13: The Case to Grow the Residential Portfolio
THE CASE TO GROW THE RESIDENTIAL PORTFOLIO US REIT Sub-Sector Movement in Last 15 Years % MARKET CAP % MARKET CAP 2010 2025 Residential has maintained sub-sector share despite growth in non-traditional specialised REITs Source: Nareit 13
Slide 14: USA REIT Index vs Residential REITs – Total Return
THE CASE TO GROW THE RESIDENTIAL PORTFOLIO USA REIT Index vs Residential REITs – Total Return Commentary • The FTSE Nareit Equity REIT Index is a broadbased benchmark that tracks all publicly traded US Equity REITs. It excludes mortgage and hybrid REITs, focusing solely on property ownership and ren
Slide 15: USA REIT Index vs Residential REITs – Yield
THE CASE TO GROW THE RESIDENTIAL PORTFOLIO USA REIT Index vs Residential REITs - Yield Commentary • The above graph reflects the performance of the US residential REIT sector relative to the US Equity REIT broad market from a yield perspective • Both series show cyclical fluctuations that broadly co
Slide 16: Japanese REIT Index vs Residential REITs – Total Return
THE CASE TO GROW THE RESIDENTIAL PORTFOLIO Japanese REIT Index vs Residential REITs – Total Return Commentary • SMTRI JREIT Index is maintained by the Sumitomo Mitsui Trust Research Institute. It is a market capitalisation weighted index that tracks the performance of all publicly listed Japanese RE
Slide 17: Japanese REIT Index vs Residential REITs – Yield
THE CASE TO GROW THE RESIDENTIAL PORTFOLIO Japanese REIT Index vs Residential REITs – Yield Commentary • The graph illustrates the relative yield performance of Japanese residential REITs versus the broader composite index • Residential REITs show a narrower yield range than the composite index, hig
Slide 18: SAC Residential Strategy
SAC RESIDENTIAL STRATEGY Inner City – Differentiate Not Dominate • Well maintained, professionally managed, high quality product • Refined portfolio to 5 precincts • Amenities & retail achieving live, work & play lifestyle • Secured with CCTV complementing on-site security presence • Flagship End St
Slide 19: The Rationale for Increasing Exposure to Suburban Estates
THE RATIONALE FOR INCREASING EXPOSURE TO SUBURBAN ESTATES Pipeline to achieve scale • Substantial pipeline supported by new development • Offering can be tailored for residential rental property Ability to provide extensive lifestyle amenities • Enhances tenant appeal • Increases tenant retention •
Slide 20: Retail: Convenience-Oriented Portfolio
RETAIL Convenience-Oriented Retail Portfolio • Grocers & food 26.0% of GLA • Convenience offering 64.7% of GLA • National tenancy 70.5% of GLA SA Corporate Portfolio Exposure & Trading Density Growth vs MSCI (Q2 2025) 12,0% 45,0% 41% 40,0% % Exposure by Shopping Category 10,0% 10,4% 35,0% Trading de
Slide 21: Musgrave Centre: Trading Density Performance
Musgrave Centre: Trading Density Performance 4 500,00 25,0% 4 000,00 Opening of Checkers Jul 24 20,0% 19,7% 18,0% 17,5% 3 500,00 14,6% 15,0% 3 000,00 12,5% 11,1% 11,7% 10,5% 10,6% 10,9% 2 500,00 10,0% 2 000,00 5,0% 1 500,00 1,0% 0,0% 1 000,00 -4,6% -5,0% 500,00 0,00 -10,0% 2023/2024 2024/2025 Growth
Slide 22: Coachmans Crossing: Trading Density Performance
Coachmans Crossing: Trading Density Performance Opening of Spur 6 000,00 Apr 24 60,0% Woolworths phase Oct 23 53,7% 5 000,00 50,0% 46,7% 45,6% 4 000,00 40,0% 3 000,00 30,0% 25,2% 2 000,00 20,0% 17,6% 14,7% 12,0% 11,8% 12,3% 11,4% 1 000,00 10,0% 8,4% 6,1% 0,00 0,0% July August September October Novem
Slide 23: Umlazi Mega City: Trading Density Performance
Umlazi Mega City: Trading Density Performance 6 000,00 25,0% Opening Boxer March 2025 5 000,00 20,1% 20,0% 16,7% 4 000,00 11,0 11,0% 15,0% 11,1% % 13,4% 3 000,00 10,0% 6,6% 2 000,00 5,0% 4,2% 1,0 % 1 000,00 -0,6% -0,2% 0,0% -0,1% - -5,0% 2023/2024 2024/2025 Growth% 23
Slide 24: Retail: Tenanting for Convenience
RETAIL Tenanting for on convenience New/Improved Convenience Offer 11 728m2/3.5% of Retail GLA (contracted/trading 2025 YTD) 24
Slide 25: Industrial Logistics – Operational Excellence
INDUSTRIAL LOGISTICS – OPERATIONAL EXCELLENCE IN ESTABLISHED HIGH DEMAND NODES Reduced Income Loss Due to Downtime Between Tenancies • Zero vacancy as at 30 June 2025 with average downtime of two months for new replacement tenants in 2025 H1 • On the ground pro-active leasing in a refined portfolio
Slide 26: Industrial Escalations and Reversions
INDUSTRIAL ESCALATIONS AND REVERSIONS 10,0% 7,2% 7,1% 6,7% 6,4% 6,4% 6,2% 6,2% 6,0% 5,9% 4,5% 4,4% 5,0% 3,1% 1,4% 0,7% 0,0% -0,9% -3,1% -5,0% -7,0% -10,0% -12,7% -15,0% 2020 2021 2022 2023 2024 2025-2027 Escalation Renewal Reversion Inflation 26
Slide 27: Zambia Investment Timeline
Zambia Investment Timeline Highlights Progression towards liquidity SAC acquires an effective Redevelopment of select REIZ portfolio forecast 1st SAC makes initial Expansion of East Park Mall 29.9% interest in LuSE1 properties in REIZ portfolio year NPI yield on investments into Zambia JV (Phases 5
Slide 28: Zambia
ZAMBIA Investment primarily in capital city retail node 28
Slide 29: Portfolio Performance
PORTFOLIO PERFORMANCE NOMZAMO RADEBE & KEVIN VAN DEN HEEVER
Slide 30: SA Portfolio: Retail
VALUE OF SOUTH AFRICAN PORTFOLIO SA PORTFOLIO: RETAIL 39.1% (Jun 2024: 38.8%; Dec 2024: 39.4%) LIKE-FOR-LIKE 5.3% 98.4% (2024 H1: 2.9% COLLECTIONS (2024 H1: 97.9% NPI GROWTH 2024 FY: 5.1% ) 2024 FY: 101.2% ) VACANCY1 2.6% ARREARS 3.7% (Jun 2024: 2.8% (Jun 2024: 5.4% Dec 2024: 2.4%) Dec 2024: 3.9%) R
Slide 31: Convenience vs Other Categories Trading Density YoY Comparison
CONVENIENCE VS OTHER CATEGORIES TRADING DENSITY YoY COMPARISON 12 000 Convenience Monthly Trading Densities Other Categories Monthly Trading Densities 10 000 8 000 6 000 4 000 2 000 0 Trading Density 2024 (12 Months Rolling) Trading Density 2025 (12 Months Rolling) 31
Slide 32: SA Portfolio: Industrial
VALUE OF SOUTH AFRICAN PORTFOLIO SA PORTFOLIO: INDUSTRIAL 18.7% (Jun 2024: 18.8%; Dec 2024: 18.5%) LIKE-FOR-LIKE 4.0% 99.3% COLLECTIONS (2024 H1: 100.1% NPI GROWTH (2024 H1: 6.3% 2024 FY: 100.3%) 2024 FY: 7.2%) 0% 2.5% VACANCY (Jun 2024: 0.0% ARREARS (Jun 2024: 2.5% Dec 2024: 0.0%) Dec 2024: 1.7%) R
Slide 33: SA Portfolio: Residential
VALUE OF SOUTH AFRICAN PORTFOLIO SA PORTFOLIO: RESIDENTIAL 40.8% (Jun 2024: 41.0%; Dec 2024: 40.8%) RESIDENTIAL INNER CITY RETAIL TOTAL (91.2% of portfolio) (8.8% of portfolio) VACANCY VACANCY RENTAL NPI GROWTH RESIDENTIAL 1 RETAIL ESCALATION LIKE FOR LIKE 3.3% 3.0% 5.3% 5.2% (Jun 2024: 4.0%; Dec 20
Slide 34: Financial Performance
FINANCIAL PERFORMANCE SAM MOODLEY
Slide 35: Financial Sustainability
FINANCIAL SUSTAINABILITY Refinanced USD 27 million facility (Jan 2025), margin of 2.40% (115 bps lower) & R1.1 billion local debt refinanced at improved margin of 11 bps. Post period end, R2.1 billion debt refinanced, reduced margins of 22 bps. Bringing debt maturities outstanding to R329 million &
Slide 36: 2025 Interim Distributable Income Analysis
2025 INTERIM DISTRIBUTABLE INCOME ANALYSIS June 2025 June 2024 % R’m R’m Like-for-like NPI 718.1 684.4 4.9 Total NPI 756.6 734.5 3.0 Income from JV 30.8 28.7 7.2 Net finance costs (363.0) (356.9) 1.7 Distributable income 369.4 338.4 9.2 Distributable Income Per share 14.07 13.46 4.6 Income R75.0m 5.
Slide 37: Net Asset Value Performance
NET ASSET VALUE Net Asset Value (“NAV”) Performance NAV per share decreased by 2.3%, from 443 cents per share (“cps”) to 433 cps. The decline was largely attributable to: A change in valuer (had the same valuer’s methodology been applied in the traditional portfolio at 31 December 2024, clean growth
Slide 38: Investment Property Analysis
INVESTMENT PROPERTY ANALYSIS 18 500 17 944 18 000 102 17 701 34 17 500 (379) 17 385 17 000 16 500 16 000 Investment Properties Disposals Fair value adjustment Improvements / Investment Properties December 2024 Development costs June 2025 New valuers opening valuation 38
Slide 39: Debt & Interest Rate Swap Facilities
DEBT & INTEREST RATE SWAP FACILITIES DEBT FACILITIES CASH AND UNDRAWN WEIGHTED AVERAGE TOTAL DEBT FACILITIES AVERAGE TENOR FACILITIES RATE (“WAR”) excl. swaps R8.1bn 1.9 years 9.0% (Dec 2024: R8.8bn) R287.4m (Dec 2024: 1.7years) (Dec 2024: 9.6%) (Dec 2024: R518.9m) Post 30 June 2025 R8.2bn Post 30 J
Slide 40: SA REIT Loan to Value and Net Interest Cover
SA REIT LOAN TO VALUE AND NET INTEREST COVER SA REIT LOAN TO VALUE Net Debt LTV SA REIT LTV 31 December 2024 42.0% FV Swap derivative (Liability) R5.7m 42.0% FV Swap derivative (Liability) R24.5m 30 June 2025 40.3% 40.4% NET INTEREST COVER 1 600 000 1,96 2,20 1 400 000 2,00 1 416 423 1,94 1 443 369
Slide 41: Outlook
OUTLOOK SAMSON MOJALEFA | SA CORPORATE AFHCO { REAL ESTATE Ain How
Slide 42: Outlook
OUTLOOK 2025 LFL NPI Retail ▪ Vacancy to remain at a similar level to H1’25 ▪ Escalations comfortably above inflation at > 6.0% ▪ Positive lease renewal reversions for remainder of FY’25 Industrial ▪ Negligible vacancy for remainder of FY’25 ▪ Average escalations of 6.0% for portfolio ▪ ~ 3% lease r
Slide 43: Questions
QUESTIONS
Slide 44: Appendices
APPENDICES | SA CORPORATE f REAL ESTATE
Slide 45: Distributable Income at a Glance for the Interim Period Ended 30 June 2025
DISTRIBUTABLE INCOME AT A GLANCE FOR THE INTERIM PERIOD ENDED 30 JUNE 2025 June 2025 June 2024 % Rm Rm Variance Net Property Income – Like-for-like 718.109 684.413 4.9 Net Property Income – Developments (1.676) 0.257 (751.1) Net Property Income – Held for sale 26.385 30.085 (12.3) Net Property Incom
Slide 46: Group Debt Structure – At 30 June 2025 (Excl Fixes)
GROUP DEBT STRUCTURE – AT 30 JUNE 2025 (EXCL FIXES) 46
Slide 47: Group Debt Profile at 30 June 2025
GROUP DEBT PROFILE AT 30 JUNE 2025 1 Exclusive of interest rate swap derivatives. 47
Slide 48: Group Debt Structure Swaps at 30 June 2025
GROUP DEBT STRUCTURE SWAPS AT 30 JUNE 2025 48
Slide 49: Interest Rate Swap Expiry at June 2025
INTEREST RATE SWAP EXPIRY AT 30 JUNE 2025 No expiries for 2025. 49
Slide 50: Retail Portfolio
RETAIL PORTFOLIO Portfolio1,2 Portfolio value R6.9 bn 38 Properties Top 10 National tenants exposure GLA 361 988m2 22.5% Grocer GLA GLA 37.6% 70.5% of total Rental income 33.6% 73.1% Cost to revenue (Like-for-like) 47.8% (2024 H1: 46.2%) 1 Excludes bulk being (re)developed valued at R15.0m, 25 697m2
Slide 51: Industrial Portfolio
INDUSTRIAL PORTFOLIO Portfolio Portfolio value R3.3 bn 44 Properties GLA 376 418m2 22.8% GLA of total portfolio Cost to revenue (Like-for-like) 27.5% (2024 H1: 27.5%) 51
Slide 52: Residential Portfolio
RESIDENTIAL PORTFOLIO Portfolio1 Portfolio value R7.2 bn 163 Properties GLA Apartments 788 166m2 Retail 76 119m2 Cost to revenue (Like-for-like) 53.4% (2024 H1: 52.7%) 1 Excludes bulk of 5 187m2 being developed, valued at R16.1m. 52
Slide 53: Commercial Portfolio
COMMERCIAL PORTFOLIO Portfolio Portfolio value R251.7 m 2 Properties GLA 21 752m2 1.3% GLA of total portfolio Cost to revenue (Like-for-like) 69.7% (2024 H1: 65.7%) 53
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