Accelerate Property Fund Ltd. · JSE:APF
Accelerate Property Fund — FY2023 Earnings Presentation
36 slides from Accelerate Property Fund's earnings presentation, Mar 31, 2023
Slide 1: Consolidated financial results for the year ended 31 March 2023
Consolidated 7 financial results ie for the year ended 31 March 2023 [ / ACCELERATE - ROPERTY FUND
Slide 2: Content
Content 2 Introduction 5 Focus areas 12 Financial performance 17 Operating performance 21 Treasury overview 25 Portfolio update 32 Conclusion Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 1
Slide 3: Introduction
In t ro d u c t i o n Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 2
Slide 4: Changes to the executive
Changes to the executive – Mr Michael Georgiou stepped down as CEO on 7 November 2022 to focus on the management and completion of Fourways Mall – Mr Andrew Costa resigned as COO on 31 March 2023 – Mr Dimitri Kyriakides has reached retirement age and retired as the Company’s CFO on 31 March 2023 – M
Slide 5: Key indicators
Key indicators 2023 2022 Revenue (R’000) (continued operations) 895 774 897 376 Remaining COVID-19 rental assistance granted (R’000)* (15 348) (35 127) Fair value adjustment on Investment Properties (R’000) (809 183) (428 722) Basic (loss)/gain per share (R) (52,27) 6,46 Diluted (loss)/gain per shar
Slide 6: Focus areas
Focus areas Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 5
Slide 7: Fourways Mall performance
Fourways Mall performance LEASING AND TRADING 18,0% – 18% year-on-year growth in trading densities Year-on-year growth in – Vacancy (excl headlease) reduced from 10,4% to 7,9% trading densities STRATEGY – The overall strategy for Fourways Mall is to become a secure, family orientated entertainment a
Slide 8: Fourways Mall performance continued
Fourways Mall performance continued OPERATING STRUCTURE AND MALL MANAGEMENT – APF is in the process of acquiring 50% of the Fourways Mall property management function to replicate the 50/50 ownership structure of the Mall – A new operating and organization structure is in process of being implemente
Slide 9: Strengthening the financial position
Strengthening the financial position DIVERSIFICATION OF FUNDING 44,8% – R750 million new 3-year funding raised LTV – This was utilised to repay R121 million of expiring debt as well as re-balance shorter dated exposures – The new debt raised enabled the Fund to maintain its undrawn facilities at app
Slide 10: Strengthening the financial position continued
Strengthening the financial position continued MANAGING AND IMPROVING ICR LEVELS – The Fund’s ICR has come under pressure due to: 9,7% § The disposal of Accelerate’s European retail portfolio and resultant repayment of low-interest-rate Blended interest rate offshore debt § Increased funding margins
Slide 11: Extracting maximum value from core properties
Extracting maximum value from core properties GOALS Vacancies – Development of dormant bulk § Motor dealership planned at Eden Meander 16,7% (2022: 21,2%) § Padel courts at Cedar Square – Maximising non-GLA income streams with a focus on advertising and rooftop rentals – Reducing overall cost of occ
Slide 12: Recovery of outstanding related receivables
Recovery of outstanding related receivables – To be received In cash: A minimum of R100 million as agreed between APF, the borrower and its Related party receivable at 31 financiers March 2023 – The remainder of the receivable is to be recovered through the purchase of assets from the related R593 m
Slide 13: Financial performance
Financial performance Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 12
Slide 14: Consolidated statement of financial position
Consolidated statement of financial position 31 March 2023 31 March 2022 (R’000) (R’000) ASSETS HIGH-LEVEL OVERVIEW OF POSITION Non-current assets 8 947 175 10 024 018 – R146 million of non-core properties were Investment property 8 909 411 9 983 936 disposed of with another R292 million at Derivati
Slide 15: Consolidated statement of profit or loss
Consolidated statement of profit or loss 31 March 2023 31 March 2022 (R’000) (R’000) HIGH-LEVEL OVERVIEW OF Continuing operations PERFORMANCE Revenue, excl. straight-line rental revenue 895 774 897 376 – Like of like revenue growth of 2,6% adjustment COVID-19 rental assistance (15 348) (35 127) – No
Slide 16: Distribution analysis
Distribution analysis 31 March 2023 31 March 2022 (R’000) (R’000) – Due to the continued focus of APF on the DISTRIBUTABLE EARNINGS strengthening of our financial position and (Loss)/profit after taxation attributable to retention of cash for reinvestment into equity holders (601 342) 61 984 our pro
Slide 17: Valuations
Valuations MOVEMENT IN INVESTMENT PROPERTIES – Gross disposals of R147 million – Downward fair value adjustment of approximately R809 million comprising mainly of downward adjustments on bulk held and a 12,5% reduction in value on Fourways Mall Accelerate Property Fund | Consolidated financial resul
Slide 18: Operating performance
Operating performance Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 17
Slide 19: Lease expiry profile and escalations
Lease expiry profile and escalations Lease expiry profile by revenue 18,0% KEY TAKE AWAYS 16,0% – Downward pressure on contractual 14,0% escalations subsiding 12,0% 10,0% 8,0% 6,0% 4,0% WALE 2,0% 3,3 years 0,0% Mar 24 Mar 25 Mar 26 Mar 27 > Mar 27 (2022: 3,9 years) Industrial Office Retail Fourways
Slide 20: Tenant retention and rental reversion
Tenant retention and rental reversion Expired New KEY TAKE AWAYS avg avg Rental Expired Renewals Retention rental rental reversion – Retail and office rentals still under pressure (m²) (m²) ratio (R/m²) (R/m²) (%) – Strong tenant retention Office* 8 581 6 940 80,9% 189.2 168.07 (11,2) Retail 31 830
Slide 21: Vacancy profile
Vacancy profile Vacancy % by GLA KEY TAKE AWAYS 120,00% – Overall vacancy decreased 100,00% significantly 80,00% – Majority of vacancies sitting in 60,00% industrial and B- and C-grade office space 40,00% 20,00% 0,00% Industrial Office# Retail Fourways Mall Vacancies (50%)* 16,4% by GLA March 2022 M
Slide 22: Treasury overview
Treasury overview Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 21
Slide 23: Debt facilities (overall fund level)
Debt facilities (overall fund level) SHORT-TERM TOTAL PORTION OF DEBT DEBT LONG-TERM DEBT HEDGED LTV* R4,5 billion R2,4 billion 75,6% 44,8% (March 2022: (March 2022: (March 2022: (March 2022: R4,6 billion) R648 3illion) 70.8%) 42,8%) WEIGHTED WEIGHTED AVERAGE BLENDED INTEREST UNDRAWN AVERAGE SWAP TE
Slide 24: Debt facilities (Accelerate listed debt SPV)
Debt facilities (Security SPV 1 – Accelerate listed debt SPV) WEIGHTED TOTAL AVERAGE DEBT DEBT DEBT TERM HEDGED LTV R3,0 billion 1,3 years 75,6% 47,5% (March 2022: (March 2022: (March 2022: (March 2022: R3,1 billion) 1,7 years) 70,8%) 42,8%) WEIGHTED AVERAGE BLENDED INTEREST UNDRAWN SWAP TERM INTERE
Slide 25: Debt expiry and hedging
Debt expiry and hedging KEY TAKE AWAYS – R1,3 billion of capital market debt refinanced during the period – Undrawn facilities of approximately R218 million – Debt expiry profile has compressed due to shorter term lending as a result of COVID-19 – APF is currently engaging with all funders regarding
Slide 26: Portfolio update
Portfolio update Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 25
Slide 27: Portfolio overview
Portfolio overview GLA GLA Value Value Revenue Revenue (m2) (%) (R’bn) (%) (R’m) (%) Retail 246 935 64,9 6,5 71,5 641,9 71,7 Office 130 085 34,2 2,6 28,2 248,2 27,7 Industrial 3 343 0,9 0,02 0,3 5,5 0,6 Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 26
Slide 28: Retail portfolio
Retail portfolio KEY DEVELOPMENTS AND FOCUS AREAS – Disposal of non-core assets: Value WALE Property (R) Timing of transfer 16 500 000 Transferred 2,5 years Cascades Shopping Centre Corporate Corner 17 000 000 Transferred Ford Fourways 77 000 000 Transferred Fair value The Leaping Frog 125 000 000 A
Slide 29: Fourways Mall
Fourways Mall TRADING WALE – Consistent improvement in trading densities (18% December 2021 to December 2022) – 12% year-on-year increase in parking numbers 2,8 years LEASING – Focus on renewal of leases expiring 5-years post opening Fair value (APF portion) – Larger new and prospective tenants: § J
Slide 30: Cedar Square
Cedar Square KEY DEVELOPMENTS (all open and trading) WALE 1. Pick n Pay clothing 439m2 2. Durama restaurant 368m2 2,0 years 3. Venture workspace (co-working space) – 1 095m2 4. The golf space – 459m2 Fair value 5. Padel courts R841 million FOCUS AREAS (including bulk of R202 million) – Increasing th
Slide 31: Eden Meander
Eden Meander WALE KEY DEVELOPMENTS – Centre almost fully let 3,7 years – A motor dealership, Tiger Wheel & Tyre, and a car wash planned to open on unutilsied bulk FOCUS AREAS Fair value – Overall refurbishment of look and feel R522 million – Activating all areas in the centre with the strategic plac
Slide 32: Office portfolio
Office portfolio NON-CORE PROPERTY DISPOSALS WALE Fair value – Brooklyn place sale signed for R25,4 million Vacancy GLA – The disposal of remaining non-core office 4,2 years R2,6 billion assets will have a positive ICR effect of (including bulk of 31% 0,22x and 2,6% positive effect on LTV R233 milli
Slide 33: Conclusion
Conclusion Accelerate Property Fund | Consolidated financial results for the year ended 31 March 2023 32
Slide 34: Conclusion
Conclusion EXECUTIVE MANAGEMENT FOCUS The executive team remains focused on strengthening the core fundamentals of the company with a number of key strategic objectives: – Fourways Mall trading and overall retail experience; – Development of unitilised bulk; – Non-core property disposals and improve
Slide 35: Thank you
Thank you Joint CEO Joint CEO Interim CFO Abri Schneider Dawid Wandrag Pieter Grobler Tel: 083 456 1229 Tel: 082 770 9260 Tel: 082 453 4175 Email: abri@acceleratepf.co.za Email: dawid@acceleratepf.co.za Email: pieter@acceleratepf.co.za Accelerate Property Fund | Consolidated financial results for th
Slide 36: Disclaimer
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