Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2022 Earnings Presentation
120 slides from Vukile Property Fund's earnings presentation, May 2022
Slide 1: FY22 Annual Financial Results
FY22 Year Ended 31 March 2022 Annual Financial Results (Some photographs used in this presentation may have been taken prior to the COVID-19 pandemic and resultant health and safety requirements)
Slide 2: Agenda
AGENDA 1 INTRODUCTION Laurence Rapp 2 SOUTH AFRICAN RETAIL PORTFOLIO OVERVIEW AND TRADING UPDATE Itumeleng Mothibeli 3 CASTELLANA PROPERTIES OVERVIEW AND TRADING UPDATE Alfonso Brunet 4 FINANCIAL PERFORMANCE, DEBT AND TREASURY Laurence Cohen 5 ESG, STRATEGY AND TRANSACTION UPDATE Laurence Rapp 6 PRO
Slide 3: Introduction
1 INTRODUCTION Laurence Rapp 3
Slide 4: Profile
INTRODUCTION / ANNUAL RESULTS 31 MARCH 2022 1 PROFILE WHO WE ARE High-quality, low-risk, retail REIT operating in South Africa and Spain Significant geographic diversification with 54% of assets located in Spain Strong operational focus with a core competence in active asset management Focus on cust
Slide 5: Strong operating results and financial position
INTRODUCTION / ANNUAL RESULTS 31 MARCH 2022 1 CONTINUED STRONG OPERATING RESULTS AND FINANCIAL POSITION LAY THE PLATFORM FOR FUTURE GROWTH STRONG PERFORMANCE WITH INCREASED COMPETITION FOR SPACE IN SOUTH AFRICA Normalised like- Retail vacancies Like-for-like Retention rate Collection rate Like-for-l
Slide 6: Group overview – property assets of R33bn
INTRODUCTION / ANNUAL RESULTS 31 MARCH 2022 1 GROUP OVERVIEW – PROPERTY ASSETS OF R33bn FOCUSSED RETAIL REIT WITH A BLUE CHIP TENANT MIX PROVIDING WELL DIVERSIFIED EXPOSURE ACROSS MACRO ECONOMIC DRIVERS AND AN INCREASED RAND HEDGE PROFILE SPAIN SOUTH AFRICA Total assets €1 091m R17.6bn 54% R15.2bn 4
Slide 7: Earnings and NAV growth positively positioned to a weakening rand
INTRODUCTION / ANNUAL RESULTS 31 MARCH 2022 1 EARNINGS AND NAV GROWTH POSITIVELY POSITIONED TO A WEAKENING RAND WITH NO NEGATIVE IMPACT ON LTV EURZAR HAS DEPRECIATED BY 5.8% ON AVERAGE SINCE 2012, HOWEVER, SHORT-TERM VOLATILITY OFTEN MASKS THE LONG TERM TREND 23 16% 22% -10% 29% -15% 2% 11% 21% -12%
Slide 8: South African retail portfolio overview and trading update
2 SOUTH AFRICAN RETAIL PORTFOLIO OVERVIEW AND TRADING UPDATE Itumeleng Mothibeli 8
Slide 9: Direct South African retail portfolio
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 DIRECT SOUTH AFRICAN RETAIL PORTFOLIO KEY RETAIL PORTFOLIO METRICS PV installed Portfolio Value Total number GLA Operational KEY FACTS 17 plants of assets Capex 12.7MW R13.8bn 36 774 864m2 R89m 9% of energy consumption Like-for-like ann
Slide 10: Retail portfolio composition
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 RETAIL PORTFOLIO COMPOSITION WELL POSITIONED DEFENSIVE PORTFOLIO FOCUSSED ON TOWNSHIP AND RURAL MARKETS Township Rural Value Centre Urban Commuter Value R4.2bn R3.3bn R1.8bn R3.4bn R1.1bn Number of properties 10 10 4 9 3 6 8% GLA 195 22
Slide 11: Retail tenant exposure
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 RETAIL TENANT EXPOSURE HIGH QUALITY CASHFLOWS FROM A WELL DIVERSIFIED BLUE-CHIP TENANT MIX 33% OF RENT FROM ESSENTIAL SERVICES 57% OF RENT FROM TOP 20 TENANTS Pepkor - 7% Foschini - 7% Essential Grocery/ Supermarket - 19% Pick n Pay Sto
Slide 12: Retail portfolio performance and trading environment
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT SALES AND FOOTFALL CONTINUE TO IMPROVE COMPARED TO PRIOR PERIODS Sales TOWNSHIP RURAL FY22 has shown an improvement on both sales Footfall and footfall relative to prior periods as CO
Slide 13: Retail category performance
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 RETAIL CATEGORY PERFORMANCE TRADING DENSITIES GROWING AT 6.1% WITH ANNUAL TURNOVER GROWTH OF 6.6% Fashion and grocery categories (44% of GLA), delivered a trading density Bottle Stores Density 32.1% growth of 4.3% and 7.7% Sports Turnov
Slide 14: Leasing activity
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 LEASING ACTIVITY VIBRANT LEASING MARKET WITH 716 LEASES CONCLUDED ON 171 580m² WITH R1.3BN CONTRACT VALUE Leasing activity concentrated in township and rural portfolio, with R163m urban showing significant improvement on prior period R3
Slide 15: Tenant composition and performance
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 TENANT COMPOSITION AND PERFORMANCE SECOND-TIER TENANTS MOST BULLISH IN FOOTPRINT EXPANSION DURING COVID-19 11 of the top 20 store footprint expansions in past 3 years have been attributable to second-tier nationals Second-tier retailers
Slide 16: Net cost to property revenue
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 NET COST TO PROPERTY REVENUE DRIVING OPERATIONAL EFFICIENCIES TO MANAGE COST PRESSURE Cost reduction initiatives Net expenses Continued energy management through solar PV, meter optimisation, tariff review, Net expenses excluding rates,
Slide 17: Valuations: retail portfolio valued at R13.8bn
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 VALUATIONS: RETAIL PORTFOLIO - 36 PROPERTIES VALUED AT R13.8BN 4.6% INCREASE WITH A CONSERVATIVE VALUE DENSITY OF R17 766/m² 13 160 764 (224) 5 62 13 767 R’m 5.8% (1.7%) 0.0% 0.5% Value Organic growth Effect of income Effect of discount
Slide 18: Portfolio disposals
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 PORTFOLIO DISPOSALS SOUTH AFRICAN DISPOSALS OF R798M CONCLUDED AT OR ABOVE BOOK VALUE Sales price Transfer SOUTH AFRICAN PORTFOLIO AT A YIELD OF 9.8% (Rm) date Ulundi King Senzangakona Shopping Centre 308.7 19 Aug 21 Letlhabile Mall 164
Slide 19: Redevelopment update
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 REDEVELOPMENT UPDATE Before After DAVEYTON MALL R90M REDEVELOPMENT The mall redevelopment started in February 2021 and was completed in April 2022 Key redevelopment features: increased lettable area with 2 106m² to a total GLA of 19 815
Slide 20: Redevelopment update: KwaMashu Shopping Centre
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 REDEVELOPMENT UPDATE KWAMASHU SHOPPING CENTRE KwaMashu Shopping Centre was extensively damaged during the July 2021 riots; the only area structurally undamaged was the front of house at Spar rebuild of the centre started on the 28th of
Slide 21: Update on civil unrest
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 UPDATE ON CIVIL UNREST SIGNIFICANT AND SPEEDY RECOVERY OF ASSETS AFFECTED BY UNREST All the malls have been fully reinstated and, in all instances, ahead of competition in their respective primary catchment areas and are trading well Th
Slide 22: Using data analytics to drive leasing decisions
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 USING DATA ANALYTICS TO DRIVE LEASING DECISIONS DATA ASSISTING TO IMPROVE EAST RAND MALL TENANT MIX Retaining and growing our existing shoppers Shoppers visit Pick n Pay, Checkers and Spar at competitors – this has driven the need for u
Slide 23: Short-term focus areas
SOUTH AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2 SHORT-TERM FOCUS AREAS CONTINUED TIGHT OPERATIONAL FOCUS Continue to be a partner of choice through providing well managed and a safe shopping environment for our retailers to thrive in TENANT Be the home of innovation allowing low barr
Slide 24: Castellana Properties overview and trading update
3 CASTELLANA PROPERTIES OVERVIEW AND TRADING UPDATE Alfonso Brunet 24
Slide 25: Economic update: Spain
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 ECONOMIC UPDATE: SPAIN Latest forecast from Bank of Spain estimates 2021 to close at +5.1%, after a -10.8% GDP decline registered in 2020. Growth is expected to accelerate by +4.8% in 2022 and by +3.3% in 2023. However, tensions coming from the
Slide 26: Conflict in Ukraine and European recovery
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 CONFLICT IN UKRAINE WILL DELAY THE EUROPEAN RECOVERY FROM THE PANDEMIC BUT SPAIN FORECAST TO OUTPERFORM THE REST OF THE EUROZONE The outlook for euro area activity (trade, commodities, and confidence) Euro Area Real GDP has become more uncertain
Slide 27: Direct Spanish portfolio
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 DIRECT SPANISH PORTFOLIO KEY PORTFOLIO METRICS GAV Portfolio value GLA NOI Like-for-like KEY FACTS +4.5% (2) €1 091b (1) €1 001b growth +0.2% (3) 350 271m² +5.94% (4) Average asset Average Average exit Total number VALUATIONS value discount rate
Slide 28: Footfall and sales
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 FOOTFALL AND SALES FOOTFALL AND SALES HAVE RETURNED TO PRE-COVID LEVELS CONSOLIDATING THE RECOVERY FOOTFALL (1) & SALES RECOVERY (2) Positive trend throughout FY22 in both footfall and sales. Outstanding performance throughout 140% 18 the period
Slide 29: Sales performance per tenant category
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 SALES PERFORMANCE PER TENANT CATEGORY LIKE-FOR-LIKE SALES CONTINUE TO RECOVER ACROSS ALL SECTORS YTD INDEX EVOLUTION – DIY YTD INDEX EVOLUTION – PETS 150% Portfolio sales FY22 versus FY20 increased 190% 140% 139% 176.5% 178.8% 181.3% 176.6% by +
Slide 30: Leasing activity FY22
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 LEASING ACTIVITY FY22 CONTINUED STRONG COMMERCIAL PERFORMANCE MAIN BUSINESS KPI´S 170 €9.5m PORTFOLIO OCCUPANCY LEASES SIGNED RENT SIGNED 31 MARCH 2022 98.4% 31 MARCH 2021 98.3% 52 118 €2.9m €6.6m RENEWALS NEW CONTRACTS RENEWALS NEW CONTRACTS RE
Slide 31: GRI bridge and breakdown
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 GRI BRIDGE AND BREAKDOWN GRI GROWTH OF 45.5% LIKE-FOR-LIKE VERSUS FY21 SHOPPING CENTRES LfL GROWTH vs €45m 69.6% GROWTH FY20 RETAIL PARKS 45.5%(2) 3.8%(4) €19m 30.4% €m < 9.5 73.5 64 55.5 58.8 17.2 39.8 (1.5) GRI Asset Asset Like-for-Like GRI Co
Slide 32: GAV bridge and breakdown
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 GAV BRIDGE AND BREAKDOWN CURRENT VALUATIONS EXCEED PRE-COVID LEVELS BY 0.2% REFLECTING THE STRENGTH OF THE PORTFOLIO ACCUMULATED COVID-19 IMPACT FROM SEPTEMBER 2019 (2.6%) ALREADY RECOVERED Revaluation Total COVID-19 from COVID-19 COVID-19 Reval
Slide 33: Disposal of office portfolio
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 DISPOSAL OF OFFICE PORTFOLIO CASTELLANA BECOMES A 100% RETAIL SOCIMI KEY DIVESTMENT HIGHLIGHTS ATTRACTIVE PRICING JUNE 2021 €26.5m 5 YEARS +18% 19% 2.09x Significant premium to original purchase Money Exit Date Selling Price Investment Premium t
Slide 34: Repositioning projects
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 REPOSITIONING PROJECTS SUCCESSFUL ASSET REPOSITIONING AND ENHANCEMENT TO BOOST VALUE CREATION AND RECURRENT RENT GENERATION ALL PROJECTS BAHIA SUR LOS ARCOS EL FARO GLA affected 37,897m² 19,320m² 10,729m² 7,848m² Number of new brands 51 18 20 13
Slide 35: Acquisition of strategic stake in Lar España
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 ACQUISITION OF STRATEGIC STAKE IN LAR ESPAÑA OPPORTUNISTIC PURCHASE OF c. 22% IN LAR ESPAÑA AT A DISCOUNT TO EPRA NTA OF c. 48% TRANSACTION THE COMPANY Lar España is a Spanish retail-focused REIT externally managed by Grupo LAR, an asset Castell
Slide 36: Main achievements in reshaping the balance sheet
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 MAIN ACHIEVEMENTS IN RESHAPING THE BALANCE SHEET CASTELLANA PROPERTIES SIGNS CASTELLANA PROPERTIES FITCH ASSIGNS CASTELLANA €185 MILLION 7-YEAR FINANCING ACQUIRES 21.7% OF PROPERTIES FIRST-TIME 'BBB-’; AGREEMENT LAR ESPAÑA REAL ESTATE INVESTMENT
Slide 37: Innovation and digitisation
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 INNOVATION AND DIGITISATION LEADING DATA-DRIVEN SHOPPING TRANSFORMATION Implementation of a new geolocation system to amplify customer knowledge into the company, providing real-time data into how customers interact within the physical world: Cr
Slide 38: Customer centricity
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 CUSTOMER CENTRICITY BRINGING CUSTOMERS TO THE STORE FROM THE ONLINE WORLD DIGITAL ADVENT CALENDAR CARRIED OUT FROM 1ST TO 25TH DECEMBER We have created additional value for our retailers by bringing new customers from the online world 1 2 3 4 in
Slide 39: Key focus areas going forward
CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2022 3 KEY FOCUS AREAS GOING FORWARD OPERATIONAL Continue to focus on growing income through active asset management, improving our service offering through EXCELLENCE customer centricity and improved decision-making by exploiting our deep data insight
Slide 40: Financial performance, debt and treasury
4 FINANCIAL PERFORMANCE, DEBT AND TREASURY Laurence Cohen 40
Slide 41: FY22 results at a glance
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 FY22 RESULTS AT A GLANCE At pre-close (in March), we guided the market for full year FY22: FFO in a range of 130 cps to 135 cps; and DPS in a range of 100 cps to 105 cps Actual results for FY22 slightly ahead of the top-end of
Slide 42: FFO bridge (Rm)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 FFO BRIDGE (Rm) STRONG RECOVERY IN OPERATIONAL PERFORMANCE IN SOUTH AFRICA AND SPAIN 110 (31) 6 (71) 102 Does not include any Includes impact income from of conversion of Lar España SA Euro debt to ZAR debt 1 336 1 220 31 Marc
Slide 43: Simplified income statement
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 SIMPLIFIED INCOME STATEMENT 31 March 2022 31 March 2021 Variance Rm Rm % Revenue 2 607 2 242 16.3 South Africa 1 624 1 501 8.2 Spain 983 741 32.7 Property Expenses (net of recoveries) (384) (379) (1.3) Net property income 2 22
Slide 44: Simplified income statement (continued)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 SIMPLIFIED INCOME STATEMENT (CONTINUED) 31 March 2022 31 March 2021 Variance Rm Rm % Profit for the period 1 454 1 165 24.8 Non controlling interests (47) (49) 4.1 Attributable to Vukile 1 407 1 116 26.1 Non-IFRS adjustments (
Slide 45: Comparison of first half to second half - FY22
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 COMPARISON OF FIRST HALF TO SECOND HALF - FY22 SIGNIFICANT ONCE-OFF EVENTS HAVE DISTORTED THE NUMBERS IN H2 RELATIVE TO H1 1st Half 2nd Half FY22 Total Rm Rm Rm FFO 763 573 1 336 FFO per share (cents) 79.8 58.5 136.3 % of tota
Slide 46: Cash flow bridge (Rm)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 CASH FLOW BRIDGE (Rm) ACTIVE CASH MANAGEMENT TO INVEST IN CORE STRATEGY 1 188 2 054 (1 099) Sale of SA property Acquisition assets, of Lar Castellana España, office reduced by assets and sale of 64% share Fairvest (1 376) in N
Slide 47: NAV bridge (R)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 NAV BRIDGE (R) NAV PER SHARE REDUCED MARGINALLY TO R17.92 MAINLY DUE TO ZAR STRENGTH 0.72 0.19 1.02 2.31 ( 1.29 ) Strengthening of ZAR exchange rate to the Euro ( 0.45 ) from R17,32 to R16,16 Includes Lar España @ €4,95 (1.42)
Slide 48: Debt and balance sheet overview
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 DEBT AND BALANCE SHEET OVERVIEW 66% (R2.3bn) of FY23 maturing debt has already been repaid, refinanced or extended LIQUIDITY AND Undrawn debt facilities of R3.1bn at 31 March 2022 (R1.9bn at 31 March 2021) EXPIRY PROFILE Suffi
Slide 49: Key treasury metrics
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 KEY TREASURY METRICS LOW RISK BALANCE SHEET AND RISK METRICS SUPPORTING INVESTMENT GRADE CREDIT RATING 31 March 31 March 2022 2021 Interest cover ratio 3.4 times 3.3 times Loan-to-value ratio 43.0% 42.8% (net of cash and cash
Slide 50: Analysis of group loan expiry profile
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 ANALYSIS OF GROUP LOAN EXPIRY PROFILE LOW RISK EXPIRY PROFILE 66% of expiries relating to FY23 of R2.3bn have already been repaid, refinanced or extended; €128m (R2.3bn) of EUR debt was repaid or converted into ZAR facilities;
Slide 51: Group loan-to-value bridge
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 GROUP LOAN-TO-VALUE BRIDGE ACTIVE ASSET ROTATION WHILST MAINTAINING STABLE LTV +2.7% +0.1% Payment of R966m FY21 Dividend in July 2021 and R388m HY2022 Dividend in +1.6% December 2021 -2.8% +1.0% -0.8% +4.0% Non-core asset -0.
Slide 52: Key treasury focus areas going forward
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 KEY TREASURY FOCUS AREAS GOING FORWARD LIQUIDITY AND Continue to proactively manage debt expiry by maintaining strong relationships across all EXPIRY PROFILE major SA banks Increasing debt maturity profile by refinancing debt
Slide 53: Key treasury focus areas going forward (cont.)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 4 KEY TREASURY FOCUS AREAS GOING FORWARD (CONT.) FX RISK Vukile has adopted a layered approach to hedging Spanish GAAP based EUR dividend forecasts MANAGEMENT with FECs, targeting an average hedge ratio of 60% across a 5-year pe
Slide 54: ESG, transaction update and strategy
5 ESG, TRANSACTION UPDATE AND STRATEGY Laurence Rapp 54
Slide 55: ESG update
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 ESG UPDATE ESG REPORTING FRAMEWORKS AND CERTIFICATIONS ESG reporting aligned with Key Stakeholder Capitalism Metrics are: World Economic Forum (WEF) Stakeholder Capitalism Metrics People Planet Prosperity Governance ESG 3-year pla
Slide 56: Significant deliverables on ESG during FY22
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 SIGNIFICANT DELIVERABLES ON ESG DURING FY22 Performance metric Achievements for FY22 Further 2.9 MWp of PV installed in SA, increasing renewable capacity by 26% year-on-year to a total of 12,7MWp. Optimisation of energy mix Contra
Slide 57: Vukile Retail Academy
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 VUKILE RETAIL ACADEMY INNOVATIVE AND UNIQUELY SOUTH AFRICAN RETAIL INCUBATION PROGRAMME The objective is to create greater diversity in tenant and category mix within our malls An incubation programme to help the next wave of seco
Slide 58: ESG focus areas FY23 – FY25
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 ESG FOCUS AREAS FY23 ‒ FY25 ENVIRONMENTAL SOCIAL GOVERNANCE Further enhancing our energy mix through Providing funding and mentorship Maintaining our high ethical standards the installation of additional renewable to a minimum of
Slide 59: Active asset rotation to drive strategic objectives
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 ACTIVE ASSET ROTATION TO DRIVE STRATEGIC OBJECTIVES SALES / CASH GENERATED DEPLOYED INTO SA direct assets Lar España R1.6bn R796m €99m Namibia R700m Merev R390m €24m Fairvest R504m Castellana shares from Dream R121m €7.5m Spanish
Slide 60: Further rotations and potential opportunities
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 FURTHER ROTATIONS AND POTENTIAL OPPORTUNITIES FY23 PROJECTED CASH GENERATORS POTENTIAL OPPORTUNITY SET Excess carried over R387m SA retail assets under evaluation Further investment into LAR 1.15 million shares purchased since yea
Slide 61: Investment in Lar España
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 INVESTMENT IN LAR ESPAÑA POSITIONING CASTELLANA FOR FURTHER GROWTH INVESTMENT THESIS Q1 2022 BUSINESS UPDATE Highly attractive acquisition price at c. 48% discount to EPRA NTA. Q1 2022 business update in line with Castellana’s for
Slide 62: Strategic focus areas
ESG, TRANSACTION UPDATE AND STRATEGY / ANNUAL RESULTS 31 MARCH 2022 5 STRATEGIC FOCUS AREAS CUSTOMERS DRIVE VALUE OUR Continued drive to embed a singular culture within Vukile and Castellana Ensuring the group remains an employer of choice PEOPLE People leadership and management will be a key differ
Slide 63: Prospects and guidance
6 PROSPECTS AND GUIDANCE Laurence Rapp 63
Slide 64: Prospects for the group
PROSPECTS AND GUIDANCE / ANNUAL RESULTS 31 MARCH 2022 6 PROSPECTS FOR THE GROUP Having successfully navigated the ongoing challenges of the COVID-19 pandemic and unrest in South Africa during the past financial year, we are delighted with the results produced and the extremely strong position of the
Slide 65: Why Vukile?
PROSPECTS AND GUIDANCE / ANNUAL RESULTS 31 MARCH 2022 6 WHY VUKILE? A UNIQUE PROPERTY COMPANY INNOVATION AND SPECIALISTS HIGH QUALITY ROBUST FINANCIAL ACTIVE HIGHEST GOVERNANCE CUSTOMER STRONG INCOME & CENTRICITY IN RETAIL PORTFOLIO METRICS MANAGEMENT STANDARDS GROWTH PROSPECTS AS PART OF OUR DNA Sp
Slide 66: Acknowledgements
PROSPECTS AND GUIDANCE / ANNUAL RESULTS 31 MARCH 2022 6 ACKNOWLEDGEMENTS Board Property managers Service providers Brokers and developers Tenants Investors Funders Colleagues 66
Slide 67: Questions and answers
QUESTIONS AND ANSWERS RTY REAL ESTATE. REAL GROWTH,
Slide 68: Retail portfolio composition – South African portfolio
Appendix 1A RETAIL PORTFOLIO COMPOSITION South African Portfolio 68
Slide 69: South Africa retail footprint
Appendix RETAIL PORTFOLIO COMPOSITION / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1A SOUTH AFRICA RETAIL FOOTPRINT RETAIL PORTFOLIO PROFILE - TOP 15 PROPERTIES ACCOUNT FOR 71% OF RETAIL PORTFOLIO BY VALUE 12 1 Pine Crest 9 Mdantsane City 8% 2 2 East Rand Mall 10 Daveyton Mall 13 6 5 10
Slide 70: High quality retail assets
Appendix RETAIL PORTFOLIO COMPOSITION / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1A HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS PINE CREST EAST RAND PHOENIX MALUTI KOLONNADE MALL PLAZA CRESCENT RETAIL PARK GAV R1 112m R1 108m R 852m R 839m R 686m Region KwaZulu-Natal Gauteng KwaZulu-Natal
Slide 71: High quality retail assets
Appendix RETAIL PORTFOLIO COMPOSITION / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1A HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS (CONT.) DOBSONVILLE GUGULETHU NONESI MALL MDANTSANE DAVEYTON MALL SQUARE CITY MALL GAV R 640m R 631m R 562m R 543m R 533m Region Gauteng Western Cape Eastern Cap
Slide 72: High quality retail assets
Appendix RETAIL PORTFOLIO COMPOSITION / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1A HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS (CONT.) MEADOWDALE THAVHANI MORULENG ATLANTIS BLOEMFONTEIN MALL MALL MALL SHOPPING CENTRE PLAZA GAV R 487m R 473m R 458m R 456m R 413m Region Gauteng Limpopo Nor
Slide 73: Retail category exposure
Appendix RETAIL PORTFOLIO COMPOSITION / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1A RETAIL CATEGORY EXPOSURE WELL DIVERSIFIED MIX OF TENANT CATEGORIES CATEGORY PROFILE BY RENT CATEGORY PROFILE BY GLA 27% Fashion 22% 18% Grocery/ Supermarket 20% 14% Banking 22% 8% Home Furnishings/ Déco
Slide 74: Retail tenant exposure
Appendix RETAIL PORTFOLIO COMPOSITION / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1A RETAIL TENANT EXPOSURE DIRECT SOUTH AFRICAN RETAIL PORTFOLIO TENANT PROFILE - BY CONTRACTUAL RENT TOP 10 TENANTS - BY CONTRACTUAL RENT Largest brand exposure 7.3 Other 2.3 18% 2.1 7.3 2.1 1.0 7.0 5.8 0.
Slide 75: FY22 retail portfolio performance metrics
Appendix 1B FY22 RETAIL PORTFOLIO PERFORMANCE METRICS South African Portfolio 75
Slide 76: Tenant affordability
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B TENANT AFFORDABILITY CONSISTENTLY SOUND PORTFOLIO METRICS RETAIL VACANCY PROFILE BY GLA RETAIL AVERAGE BASE RENTALS R/M² (EXCL. RECOVERIES) 3.8% 3.9% 146.40 152.69 3.2% 134.78 141.43 3.0% 2
Slide 77: Trading densities
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B TRADING DENSITIES 13 OUT OF 14 CATEGORIES SHOWING POSITIVE TRADING DENSITY GROWTH March 2021 AVERAGE ANNUAL TRADING DENSITY ANNUAL TRADING DENSITY GROWTH RENT-TO-SALES March 2022 R29 091/m²
Slide 78: Retail portfolio trading statistics for top 15 properties
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B RETAIL PORTFOLIO TRADING STATISTICS FOR TOP 15 PROPERTIES CONTINUING TO PROVIDE VERY PROFITABLE CENTRES FOR OUR TENANTS TRADING DENSITY GROWTH (LIKE-FOR-LIKE) 24.8% 6.3% 8.5% 11.4% 1.7% 12.
Slide 79: Rent-to-sales ratio by top 15 properties
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B RENT-TO-SALES RATIO BY TOP 15 PROPERTIES CONTINUING TO PROVIDE VERY PROFITABLE CENTRES FOR OUR TENANTS 11.0% 8.3% 7.7% 7.0% 6.5% 6.0% 6.1% 5.7% 5.5% 5.4% 5.1% 5.0% 5.0% 4.9% 4.5% 4.5% East
Slide 80: Tenant affordability: average annual rent-to-sales ratio
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B TENANT AFFORDABILITY RENT TO SALES HOLDING STEADY ACROSS THE PORTFOLIO THROUGH TOUGH MARKET CONDITIONS Average annual rent-to-sales ratio 12.9% 11.7% 9.0% 8.4% 8.2% 8.2% 5.8% 6.1% 6.0% 6.0%
Slide 81: Retail tenant expiry profile
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B RETAIL TENANT EXPIRY PROFILE 26% OF CONTRACTUAL RENT EXPIRING IN FY26 AND BEYOND (WALE 2.8 YEARS) 100 82 74 58 31 27 16 18 31 8 March 2023 March 2024 March 2025 March 2026 Beyond March 2026
Slide 82: Retail vacancies
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B RETAIL VACANCIES 29 PROPERTIES FULLY LET OR WITH VACANCIES LOWER THAN 1 000m² Fully Let Ga-Kgapane Modjadji Plaza Germiston Meadowdale Mall Giyani Plaza Gugulethu Square Mbombela Truworths
Slide 83: Retail vacancy movement
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B RETAIL VACANCY MOVEMENT 30 260m² OF VACANT SPACE HAS BEEN LET WHEN CONTRASTED WITH 31 001m² OF VACATED SPACE Vacated New leasing Fashion 9 558m² 7 413m² Home Furnishings / Décor 3 065m² 6 4
Slide 84: Weighted average base rentals R/m² (excluding recoveries)
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B WEIGHTED AVERAGE BASE RENTALS R/m² (EXCLUDING RECOVERIES) SOUTH AFRICAN RETAIL PORTFOLIO Durban Phoenix Plaza Boksburg East Rand Mall Durban Workshop Daveyton Shopping Centre Pinetown Pine
Slide 85: Collections
Appendix FY22 RETAIL PORTFOLIO PERFORMANCE METRICS / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1B COLLECTIONS COLLECTED R2.220bn OF R2.223bn BILLED 69% of 10% of 19% of 1% of billings billings billings billings National Mid-tier SMME's Government tenants tenants 99% 89% 100% 102% Total
Slide 86: FY22 total portfolio – South African portfolio
Appendix 1C FY22 TOTAL PORTFOLIO South African Portfolio 86
Slide 87: South African total portfolio composition
Appendix FY22 TOTAL PORTFOLIO / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1C SOUTH AFRICAN TOTAL PORTFOLIO COMPOSITION 44 PROPERTIES VALUED AT R14.5bn COVERING 845 659m² SECTORAL PROFILE - BY VALUE SECTORAL PROFILE - BY GLA Number of By Value properties By GLA Top 15 95% Retail 36 92% T
Slide 88: Valuation methodology
Appendix FY22 TOTAL PORTFOLIO / SOUTH AFRICAN PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 1C VALUATION METHODOLOGY SOUTH AFRICAN PROPERTY PORTFOLIO Valuations are based on multiple assumptions which involve some subjectivity. The key is consistency in applying SCIENCE VS. ART `the same methodology over
Slide 89: Social & economic update – Spanish portfolio
Appendix 2A SOCIAL & ECONOMIC UPDATE Spanish Portfolio 89
Slide 90: Impact on Spanish economy: bond yields
Appendix SOCIAL & ECONOMIC UPDATE / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2A IMPACT ON SPANISH ECONOMY RISING BOND YIELDS DUE TO INCREASED UNCERTAINTY AND INFLATION 10-YEAR GOVERNMENT BONDS (YIELD %) BID YIELD (%) MAY 2022 18% 8.5 16% 7.5 7.21 14% 6.4 12% 6.5 10% 5.5 8% 4.5 6% 3.5 4% 2.78
Slide 91: Impact on Spanish economy: unemployment and consumer confidence
Appendix SOCIAL & ECONOMIC UPDATE / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2A IMPACT ON SPANISH ECONOMY UNEMPLOYMENT RATE AND CONSUMER CONFIDENCE CONSUMER CONFIDENCE (CIS) UNEMPLOYMENT(1) IN SPAIN BY ECONOMIC SECTOR 120 5 500 000 5 000 000 100 4 500 000 4 000 000 80 3 500 000 3 000 000 60
Slide 92: Portfolio overview – Spanish portfolio
Appendix 2B PORTFOLIO OVERVIEW Spanish Portfolio 92
Slide 93: Our portfolio
Appendix PORTFOLIO OVERVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2B OUR PORTFOLIO WELL DIVERSIFIED ACROSS SPAIN 9 4% 1 El Faro 9 Parque Principado 5 10% 2 Bahía Sur 10 Marismas de Polvorín 3 Los Arcos 11 La Heredad 8 4% 16 4 Granaita 12 La Serena 15 21% 5 Vallsur 13 Pinatar Park 11 8%
Slide 94: Spanish portfolio overview
Appendix PORTFOLIO OVERVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2B SPANISH PORTFOLIO OVERVIEW TOP 10 ASSETS EL FARO BAHÍA SUR LOS ARCOS GRANAITA (1) HABANERAS GAV €171.8m €147.2m €137.1m €107.2m €86.5m Province Badajoz Cádiz Seville Granada Alicante Catchment Area (Inhabitants) 517 49
Slide 95: Spanish portfolio overview
Appendix PORTFOLIO OVERVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2B SPANISH PORTFOLIO OVERVIEW TOP 10 ASSETS VALLSUR PUERTA PARQUE PARQUE MARISMAS DEL EUROPA OESTE (1) PRINCIPADO POLVORÍN GAV €83.0m €71.7m €52.0m €37.2m €28.1m Province Valladolid Cádiz Madrid Oviedo Huelva Catchment Ar
Slide 96: Tenant mix
Appendix PORTFOLIO OVERVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2B TENANT MIX HIGHLY DIVERSIFIED RETAIL MIX LEADING TO SUSTAINABLE, HIGH QUALITY AND LOW RISK INCOME STREAMS ASSETS GLA WALE (1) OCCUPANCY 16 350 271m² 13.2 years 98.4% CATEGORY PROFILE BY RENT TOP 10 TENANTS BY RENT 31 M
Slide 97: Spanish total portfolio composition
Appendix PORTFOLIO OVERVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2B SPANISH TOTAL PORTFOLIO COMPOSITION SECTORAL PROFILE - BY VALUE SECTORAL PROFILE - BY GLA Development potential 1% Retail Parks 30% Retail Parks Top 10 Top 10 45% properties properties 92% 84% Shopping Shopping Centres
Slide 98: Retail tenant exposure
Appendix PORTFOLIO OVERVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2B RETAIL TENANT EXPOSURE 94% INTERNATIONAL AND NATIONAL TENANT PROFILE BUILDING A ROBUST AND DEFENSIVE PORTFOLIO TOP 10 TENANT GROUPS BY RENT TENANT GROUP PROFILE - BY CONTRACTUAL RENT INDITEX 11.3% ZARA 3.1% LEFTIES 1.7
Slide 99: FY22 operational review – Spanish portfolio
Appendix 2C FY22 OPERATIONAL REVIEW Spanish Portfolio 99
Slide 100: Spanish vacancy profile
Appendix OPERATIONAL REVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2C SPANISH VACANCY PROFILE PORTFOLIO VACANCY OF 1.6% OF GLA Shopping Centres Vallsur (35.212m²) 3.9% 2.8% El Faro (40.318m²) 1.1% 1.8% Puerta Europa (29.783m²) 0.6% 0.7% Bahía Sur (35.333m²) 0.8% 1.4% Los Arcos (26.680m²)
Slide 101: Lease expiry profile
Appendix OPERATIONAL REVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2C LEASE EXPIRY PROFILE 54% OF CONTRACTUAL RENT EXPIRING IN FY31 AND BEYOND (WALE 11 YEARS TO EXPIRY AND 2.6 YEARS TO BREAK) EXPIRY PROFILE (% RENT) 100 54 39 42 46 25 29 34 13 20 1 8 7 5 7 5 4 5 5 3 4 1 Mar/22 Mar/23 Mar
Slide 102: Lease expiry profile
Appendix OPERATIONAL REVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2C LEASE EXPIRY PROFILE 66% OF CONTRACTUAL GLA EXPIRING IN FY31 AND BEYOND (WALE 13.2 YEARS TO EXPIRY AND 2.6 YEARS TO BREAK) EXPIRY PROFILE (% GLA) 100 66 28 31 34 16 18 20 24 2 3 7 10 4 3 6 4 4 3 3 2 1 2 2 Vacant Mar/22
Slide 103: Customer centricity
Appendix OPERATIONAL REVIEW / SPANISH PORTFOLIO / ANNUAL RESULTS 31 MARCH 2022 2C CUSTOMER CENTRICITY CASTELLANA PROPERTIES ENGAGES ITS CUSTOMERS AND KEEPS THEIR SHOPPING CENTRES AS THE SOCIAL HUB WITH INNOVATIVE ROADSHOWS 4 +7.1K +1.4K +€110K +6% SHOPPING PARTICIPANTS NEW MEMBERS INCENTIVE IN CENTE
Slide 104: Financial performance, debt and treasury
Appendix 3 FINANCIAL PERFORMANCE, DEBT AND TREASURY 104
Slide 105: Geographical segment analysis
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 GEOGRAPHICAL SEGMENT ANALYSIS SPANISH PORTFOLIO RECOVERS POST PANDEMIC YEAR ENDING 31 March 2021 YEAR ENDING 31 March 2022 33% 38% REVENUE REVENUE 62% 67% 34% 40% NET NET PROPERTY 60% PROPERTY 66% INCOME INCOME Spain
Slide 106: FFO and dividends
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 FFO AND DIVIDENDS RECOVERY IN FFO PER SHARE – IMPACT OF COVID-19 MOST ACCUTE IN FY21 100% 69% 79% 77% 200 183.50 187.26 166.59 156.76 159.24 148.54 143.48 150 134.94 1 791 136.30 125.10 127.60 119.00 1 690 100 1 234 1
Slide 107: Accounting for the investment in Lar España
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 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 is accounted for at fair value through other compre
Slide 108: Recognition of dividend income from the investment in Lar
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 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
Slide 109: Composition of group balance sheet
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 COMPOSITION OF GROUP BALANCE SHEET MATCHING DEBT WITH PROPERTY ASSETS - BY GEOGRAPHY AND CURRENCY VUKILE COMPANY CASTELLANA (non-recourse to Vukile) Total Company Assets (R24.7bn) to Debt (R6.6bn) Ratio 3.7x EUR Asset
Slide 110: Cost of funding
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 COST OF FUNDING MARGINAL CHANGE IN GROUP COST OF FINANCE DUE TO HIGHER PROPORTION OF ZAR FUNDING GROUP DEBT BY CURRENCY 8.05% 7.05% 7.22% 2.61% 2.86% 3.06% 3.88% 4.51% 4.93% R15.404bn R15.594bn R14.654bn R11.548bn R8.
Slide 111: Analysis of group loan repayment and hedging expiry profile
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 ANALYSIS OF GROUP LOAN REPAYMENT AND HEDGING EXPIRY PROFILE WELL HEDGED WITH LOW RISK EXPIRY PROFILE GROUP LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 37.3% R3.1bn OF AVAILABLE 42.2% UNDRAWN BANK FACILITIES 75
Slide 112: Analysis of Southern African loan repayment and hedging expiry profile
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 ANALYSIS OF SOUTHERN AFRICAN LOAN REPAYMENT AND HEDGING EXPIRY PROFILE WELL HEDGED WITH LOW RISK EXPIRY PROFILE SOUTH AFRICAN LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 59% OF INTEREST-BEARING DEBT HEDGED 2.4
Slide 113: Analysis of Castellana loan repayment and hedging expiry profile
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 ANALYSIS OF CASTELLANA LOAN REPAYMENT AND HEDGING EXPIRY PROFILE LOW REFINANCE RISK OVER THE NEXT FOUR YEARS CASTELLANA LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 59.2% 89% OF INTEREST-BEARING DEBT HEDGED 58.
Slide 114: Consolidated net exposure by currency at 31 March 2022
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 CONSOLIDATED NET EXPOSURE BY CURRENCY AT 31 MARCH 2022 AT 31 MARCH 2022 ZAR Exposure EUR Exposure Group Rm €m Rm Vukile property value R14 647 R14 647 Fairvest, Investment in Associate (Namibia), Joint Venture (DREAM)
Slide 115: Forecast LTV sensitivity to valuation and foreign exchange movements
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 FORECAST LTV SENSITIVITY TO VALUATION AND FOREIGN EXCHANGE MOVEMENTS AT 31 MARCH 2022 5% ZAR WEAKENING TO 3% INCREASE IN 1.1% DECREASE IN EXAMPLE: 16.97 PROPERTY VALUATION THE GROUP LTV Property valuation movement -12
Slide 116: Cross currency interest rate swap exposure
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 CROSS CURRENCY INTEREST RATE SWAP EXPOSURE LIMITED USE OF CROSS CURRENCY INTEREST RATE SWAPS No new CCIRS were entered during the year The CCIRS ratio to total value of international investments (on a consolidated bas
Slide 117: Corporate bond issuances
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 CORPORATE BOND ISSUANCES COMPOSITION OF SECURED AND UNSECURED DEBT Corporate Bonds Security Amount Reference Rate Margin Maturity Date Initial Term VKE10 Secured R194m 3M JIBAR 1.80% 08 July 2022 5.2 years VKE11 Unsec
Slide 118: Overview of unencumbered assets
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 OVERVIEW OF UNENCUMBERED ASSETS Total Unencumbered Unencumbered Number GLA unencumbered direct listed of assets property shares properties R10 281m (A) R1 168m R9 113m 8 97 143m² Average property Retail rent from Cont
Slide 119: See-through loan-to-value ratio
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 “SEE-THROUGH” LOAN-TO-VALUE RATIO Interest Property bearing debt assets Cash LTV Shareholding Rm Rm Rm Vukile Company, MICC, Namibia, 6 605 14 815 98 43.9% 100.0% Dream and 100% of Clidet No. 1011 Castellana 8 049 17
Slide 120: SA REIT ratios
Appendix FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2022 3 SA REIT RATIOS 31 March 2022 31 March 2021 SA REIT funds from operations R1,34bn R1,24bn SA REIT funds from operations per share 136.91 c/share 129.89 c/share SA REIT net asset value R16,9bn R16,4bn SA REIT net asset