Grit Real Estate Income Group Limited · LSE:GR1T
Grit Real Estate Income — 9M FY2018 Earnings Presentation
25 slides from Grit Real Estate Income's earnings presentation, Jun 12, 2018
Slide 1: Interim Results Presentation
Interim Results Presentation Nine months ended 31 March 2018 GRIT REAL ESTATE INCOME GROUP (“GRIT”) 12 JUNE 2018
Slide 2: Agenda
Agenda Highlights Proposed LSE Main Market Listing Use of Funds Valuation Updates The only thing we know Financial Overview about the future is that it’s going to be different. Looking Ahead Annexure Ι 2
Slide 3: Highlights
Highlights Ι 3 Commodity House Phase 1, Mozambique
Slide 4: Highlights
Highlights Proposed Main Current Dollar Distribution Track Multinational Market LSE Listing Dividend Yield Record Tenants July 2018 In excess of 8 of tenants in Forbes 2000 8.0% consecutive distributions in list or ‘Other Global’ line with market guidance Multi Geography & WACD1 WALE2 Portfolio Occu
Slide 5: Proposed LSE Main Market Listing
Proposed LSE Main Market Listing Ι 5
Slide 6: Grit's rationale for Proposed LSE Main Market Listing
Grit’s rationale for Proposed LSE Main Market Listing 1 Supporting Grit’s growth aspirations to acquire its current and future pipeline 2 Boosting the underlying liquidity and tradability of its shares 3 Broadening and diversifying its shareholder base with established UK and international investors
Slide 7: Pipeline Overview & Use of Funds
Pipeline Overview & Use of Funds Ι 7 Victoria Beachcomber Resort & Spa, Mauritius
Slide 8: Use of Proposed LSE Listing proceeds
Use of Proposed LSE Listing proceeds ❖ Maximum shares issued of 250m ❖ $87m announced acquisitions ❖ $123m to reduce group gearing ❖ Balance – to be deployed in the secured future pipeline The capital raised will support Grit’s investment strategy of: Concluding secured future pipeline Attracting an
Slide 9: Portfolio Key Metrics (as at 31 Mar 2018)
Portfolio Key Metrics (as at 31 Mar 2018) Light Corporate Held for Other Retail Commercial Hospitality Total Industrial Accommodation Development Investments Number of Properties 7 5 2 4 1 1 1 21 Property Value/Acquisition Price 220.2 142.8 25.0 143.7 35.5 3.4 3.9 574.5 (US$ m) Weighted Average Capi
Slide 10: Diversification of Portfolio by Geography
Diversification of Portfolio by Geography Existing Portfolio Enlarged Portfolio 0.5% 0.6% 11.8% 15.4% 12.1% 15.8% 34.6% 23.4% 32.9% 27.2% 16.0% 4.3% 3.3% 2.1% Mauritius* Mozambique Morocco* Zambia Kenya Botswana* Ghana * Investment Grade Country Note: Split by Asset Value Ι 10
Slide 11: Diversification of Portfolio by Sector
Diversification of Portfolio by Sector Existing Portfolio Enlarged Portfolio 0.6% 0.7% 3.1% 0.4% 6.0% 11.0% 26.3% 34.6% 24.4% 18.7% 4.3% 3.3% 37.7% 28.9% Commercial Retail Light Industrial Hospitality Corporate Accommodation Other Investments Property Held for Development Ι 11 Note: Split by Asset V
Slide 12: Tenancy Grading
Tenancy Grading The strength of counterparty and Current Portfolio ¹ Enlarged Portfolio ¹ sectoral/tenancy industry diversification 3.89% 4.89% is evidenced by the composition of the 6.74% Group’s top ten tenancies which is comprised of: 11.89% 35.47% 30.24% • A global petroleum company; 19.55% • Gl
Slide 13: Valuation Updates
Valuation Updates Ι 13 CADS II Building, Ghana
Slide 14: Independent Portfolio Valuations
Independent Portfolio Valuations ❖ All properties have been independently valued as at 31 January 2018 in preparation for the proposed LSE listing ❖ Office, hospitality, light industrial and corporate accommodation assets across countries have retained value or shown favourable fair value adjustment
Slide 15: Financial Overview
Financial Overview Ι 15 5th Avenue Corporate Offices, Ghana
Slide 16: Financial Highlights
Financial Highlights As a result of the proposed LSE Capital Raise Reduce gearing Reduce admin costs Reduce cost to income ratio From c.51.1% From 1.0% Current 15% to to <40% 0.7% On the horizon post proposed LSE Capital Raise REIT legislation NAV Growth Potential Bond issuance Introduction in Moroc
Slide 17: Financial Overview
Financial Overview GRIT IN NUMBERS 31 March ‘18 Restated FY17 Total Property Related Investments (US$m) 591 488 Loan to value ratio (LTV) (%) 51.1 42.8 Property cost to income ratio (%) 15.3 31.3 Admin cost to asset value ratio (%) 1.0 1.4 Cost of debt (%) 5.7 5.8 NAV per share US$ cps 137.0 130.2 E
Slide 18: IFRS NAV / EPRA NAV
IFRS NAV / EPRA NAV ❖ In compliance with global best practice, as defined by the European Public Real Estate Association (EPRA), Grit will now be disclosing EPRA NAV in its financial figures ❖ EPRA is of the view that NAV reported in the financial statements under IFRS does not provide stakeholders
Slide 19: Changes in Policies / Restatement / Reclassification
Changes in Policies / Restatement / Reclassification ❖Revenue recognition ❖FAM consolidation ❖Anfa revaluation ❖Deferred tax ❖Forex reclassification Ι 19
Slide 20: Statement of Financial Position
GROUP Unaudited Restated Statement of 9 months ended 31 March 2018 Year ended 30 June 2017 Financial Position Assets US$m US$m Non-current assets Total Property Investments 591.1 488.0 Other non-current assets 1.2 1.9 EPRA NAV per share Total non-current assets 592.3 489.2 (US$ cps) Total current as
Slide 21: Looking Ahead
Looking Ahead Target Dividend Target Dividend Shareholders Acquisitions H2 2018 Growth Introducing new 3% - 5%¹ Conversion of yield c.US$6.0 cps¹ annually accretive acquisitions shareholders at NAV Geographical Stock Exchange Tenant Base LTV Reduction Exposure Listings Country diversification into n
Slide 22: Thank You
Thank You Grit Real Estate Income Group Reg. No. C128881 3rd Floor, La Croisette Shopping Centre, Grand Baie 30517, Mauritius Level 5, Alexander House, 35 Cybercity Ebene 72201, Mauritius T: +230 269 7090 E: communications@grit.group Ι 22
Slide 23: Annexure: Portfolio Valuations
Annexure: Portfolio Valuations Jan '18 independent valuation Property Country Grit shareholding % Valuer (Grit proportionate shareholding) Barclays House Mauritius $16,100,000 100.0% Broll Tamassa Resort Bel Ombre Mauritius $47,900,000 100.0% Broll Beachcomber Hospitality Resorts: Victoria Beachcomb
Slide 24: Annexure: Portfolio Valuations – Proposed Acquisitions
Annexure: Portfolio Valuations – Proposed Acquisitions Jan '18 independent valuation Property Country Grit shareholding % Valuer (Grit proportionate shareholding) Acacia Estates Mozambique $48,620,700 80.1% JLL 5th Avenue Ghana $21,100,000 100.0% Broll CADS II Ghana $18,050,000 50.0% Broll Commercia
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by Grit Real Estate Income Group Limited ("Grit") solely for your information and should not be considered to be an offer or solicitation of an offer to buy or sell or subscribe for any securities, financial instruments or any rights attaching to such s
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