Octodec Investments Limited · JSE:OCT
Octodec Investments — H1 2026 Earnings Presentation
58 slides from Octodec Investments's earnings presentation, May 2026
Slide 1: Interim Results for the Six Months Ended 28 February 2026
HY2026 INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2026 Octodec Investments Limited 0 Interim Results for the six months ended 28 February 2026
Slide 2: Agenda
AGENDA Overview and strategic positioning 1 Jeffrey Wapnick, CEO Our portfolio performance: residential 2 Rob Gibson, COO Our portfolio performance: commercial 3 Rob Gibson, COO Our commitment to operating responsibly 4 Riaan Erasmus, Deputy CEO and FD Financial results and capital management 5 Riaa
Slide 3: Overview
OVERVIEW Sharon’s Place
Slide 4: Octodec at a Glance
OCTODEC AT A GLANCE WHAT WHY HOW We aim to serve a thriving tenant-base of With many decades of asset and property Octodec’s diverse property portfolio consists of residents, professionals, government management experience, Octodec’s talented market-leading residential, retail, office, and employees
Slide 5: Management Team
MANAGEMENT TEAM Riaan Erasmus Jeffrey Wapnick Robert Gibson Deputy Chief Executive Officer Chief Executive Officer Chief Operating Officer, CPA and Financial Director (CFO) Octodec Investments Limited 4 Interim Results for the six months ended 28 February 2026
Slide 6: Salient Features and Performance Highlights
SALIENT FEATURES AND PERFORMANCE HIGHLIGHTS Increase in revenue of Distributable income after tax Distributable income per share 2.1% (REIT funds from operations) 92.6 cents to R1 077.9 million R246.6 million representing an 11.1% increase (HY2025: R1 056.2 million) (HY2025: R221.7 million) (HY2025:
Slide 7: Salient Features and Performance Highlights Continued
SALIENT FEATURES AND PERFORMANCE HIGHLIGHTS CONTINUED Portfolio value including 100% of Loan-to-value (LTV) maintained Net asset value (NAV) (REIT) equity accounted joint venture within target range (REIT) per share of R11.2 billion 37.3% R25.49 (FY2025: R11.2 billion) (FY2025: 37.9%)* (FY2025: R25.
Slide 8: Rental Income Analysis
RENTAL INCOME ANALYSIS A WELL-DIVERSIFIED PORTFOLIO IN GAUTENG Rental income by sector CBD vs non-CBD rental income (%) 28 February 2026 CBD 46.6% Residential (HY2025: 54.0%) (HY2025: 33.9%) 53.4% 35.3% Retail – street shops 4.6% (HY2025: 22.9%) Non-CBD 7.4% (HY2025: 46.0%) Offices (HY2025: 19.2%) 1
Slide 9: Our Portfolio Performance: Residential
OUR PORTFOLIO PERFORMANCE: RESIDENTIAL Kempton Place
Slide 10: Residential Portfolio Overview
RESIDENTIAL PORTFOLIO OVERVIEW RESILIENT DEMAND AMID TENANT AFFORDABILITY PRESSURES As at As at 28 February 2026 28 February 2025 Rental growth underpinned by declining vacancies and GLA (m2) 422 217 422 333 continued positive rental reversions to market levels Number of properties 63 64 Number of
Slide 11: Residential Portfolio Update
RESIDENTIAL PORTFOLIO UPDATE A SNAPSHOT OF OUR QUALITY OFFERING REPRESENTING 11.7% OF THE TOTAL PORTFOLIO VALUE The Fields – Hatfield, Tshwane Kempton Place – Kempton Park Sharon’s Place – Tshwane CBD HY2026 HY2025 HY2026 HY2025 HY2026 HY2025 Number of units 737 737 Number of units 469 469 Number of
Slide 12: Residential Portfolio Update
RESIDENTIAL PORTFOLIO UPDATE RECOGNISED FOR CLEAN, SAFE, AND WELL-MAINTAINED ACCOMMODATION PLACE BRAND STATISTICS Apartments range between bachelor and three-bedroom, as well as sharing units Rentals range between R4 250 and R7 300 per month Ongoing investment to ensure attractiveness and rele
Slide 13: Yethu City – Proof of Concept
YETHU CITY – PROOF OF CONCEPT REDEFINING AFFORDABLE URBAN LIVING Yethu City – on Sisulu fully let within 3.5 months, with sustained 95% occupancy o Strong tenant demand and retention o Increased precinct vibrancy and footfall Combines: Well designed All-inclusive co-living spaces; kitchens, Lowe
Slide 14: Our Portfolio Performance: Commercial
OUR PORTFOLIO PERFORMANCE: COMMERCIAL Waverley Plaza
Slide 15: Retail – Shopping Centres Overview
RETAIL – SHOPPING CENTRES OVERVIEW PROACTIVE MANAGEMENT OF TENANT MIX DELIVERS VALUE As at As at 28 February 2026 28 February 2025 GLA (m2) 80 834 97 240 Rental income (R’million) 97.6 98.6 Rental income growth (%)* (1.0) 6.2 Rental income growth (like-for-like) (%)* 7.7 6.2 Average size of centre (
Slide 16: Top Three Shopping Centres
TOP THREE SHOPPING CENTRES A SNAPSHOT OF OUR QUALITY OFFERING REPRESENTING 9.6% OF THE TOTAL PORTFOLIO VALUE Waverley Plaza – Waverley, Tshwane The Park – Elardus Park, Tshwane Woodmead Value Mart – Johannesburg HY2026 HY2025 HY2026 HY2025 HY2026 HY2025 GLA (m2) 11 708 11 573 GLA (m2) 11 914 12 020
Slide 17: Retail – Street Shops Overview
RETAIL – STREET SHOPS OVERVIEW RESILIENT TRADING, PARTICULARLY IN PRETORIA As at As at 28 February 2026 28 February 2025 GLA (m2) 321 463 334 329 Rental income (R’million) 178.8 179.7 Rental income growth (%) (0.5) 0.6 Rental income growth (like-for-like) (%)* 3.7 1.4 Total vacancies (% of GLA) 21.1
Slide 18: A Snapshot of Our Retail – Street Shops
A SNAPSHOT OF OUR RETAIL – STREET SHOPS PLAYING A KEY ROLE IN OUR CBD ECOSYSTEM Shoprite Lilian Ngoyi – Tshwane CBD Cuthchurch – Tshwane CBD Bank Towers – Tshwane CBD HY2026 HY2025 HY2026 HY2025 HY2026 HY2025 GLA (m2) 17 134 17 134 GLA (m2) 9 739 9 739 GLA (m2) 7 652 7 626 Occupancy (%) 39.1 39.1 Oc
Slide 19: Some of the Top National Retailers Across Our Portfolio
SOME OF THE TOP NATIONAL RETAILERS ACROSS OUR PORTFOLIO Octodec Investments Limited 18 Interim Results for the six months ended 28 February 2026
Slide 20: Offices Overview
OFFICES OVERVIEW PORTFOLIO REMAINS STABLE, WITH SCOPE FOR DISPOSALS OR CONVERSIONS As at As at 28 February 2026 28 February 2025 GLA (m2) 426 119 450 417 Number of tenants 1 623 1 578 Let to Government (% of total rental income from offices) 56.3 54.8 Other (% of total rental income from offices) 43
Slide 21: Showcasing Our Varied Office Offering
SHOWCASING OUR VARIED OFFICE OFFERING REPRESENTING 5.3% OF THE TOTAL PORTFOLIO VALUE Louis Pasteur Hospital – Tshwane CBD Centre Walk – Tshwane CBD Premium Towers – Tshwane CBD HY2026 HY2025 HY2026 HY2025 HY2026 HY2025 GLA (m2) 24 799 24 799 GLA (m2) 25 744 25 744 GLA (m2) 7 849 7 849 Occupancy (%)
Slide 22: Industrial Overview
INDUSTRIAL OVERVIEW STEADY DEMAND WITH IMPROVED PERFORMANCE As at As at 28 February 2026 28 February 2025 Total GLA (m2) 200 726 200 283 Number of tenants 326 336 Rental income (R’million) 58.9 55.1 Rental income growth (%) 6.8 2.7 Rental income growth (like-for-like) (%)* (1.7) 5.1 Total vacancies
Slide 23: Our Industrial Parks
OUR INDUSTRIAL PARKS OFFERING SMALLER WAREHOUSES AND MINI UNITS REPRESENTING 3.9% OF THE TOTAL PORTFOLIO VALUE The Tannery – Silverton, Tshwane Sildale Park – Silverton, Tshwane John Street – Johannesburg CBD HY2026 HY2025 HY2026 HY2025 HY2026 HY2025 GLA (m2) 37 542 37 542 GLA (m2) 22 807 22 807 GLA
Slide 24: Lease Expiry Profile in Line with Historic Trends
LEASE EXPIRY PROFILE IN LINE WITH HISTORIC TRENDS Expiries by rental income and GLA m2 (%) LENGTH OF STAY 6.8 4.3 The average stay of a residential tenant is 27.0 months, February 2031 excluding Hatfield tenants who are traditionally students leasing 7.6 for 10 months during the academic year. Febru
Slide 25: Material Leases Concluded During the Period
MATERIAL LEASES CONCLUDED DURING THE PERIOD AT 28 FEBRUARY 2026 Renewal GLA Building Tenant expiry (m²) Renewal status Gezina City Medipost April 2037 15 137 Current lease expires in May 2027, and a post development lease concluded, escalating at 4% per annum until April 2037. Centre Walk Department
Slide 26: Material Expired Leases > 3 000m²
MATERIAL EXPIRED LEASES > 3 000M² AT 28 FEBRUARY 2025 Building Tenant Lease expiry GLA (m²) Renewal status Louis Pasteur Louis Pasteur Private February 2025 15 446 The tenant is currently under business rescue and on a monthly tenancy. Hospital Cuthchurch Gauteng City College December 2025 3 945 Ten
Slide 27: Collections Remain Strong
COLLECTIONS REMAIN STRONG TOTAL COLLECTIONS AT 28 FEBRUARY 2026 Collected to billed (%) Collected R1.20 billion (HY2025: R1.18 billion) Billed R1.22 billion (HY2025: R1.16 billion) Collected to billed % 98.5% (HY2025: 97.7%) Residential Commercial 95.9% 99.3% The Fields Octodec Investments Limited 2
Slide 28: Our Commitment to Operating Responsibly
OUR COMMITMENT TO OPERATING RESPONSIBLY The Fields
Slide 29: Solar Installations Demonstrating Environmental Stewardship
SOLAR INSTALLATIONS DEMONSTRATING ENVIRONMENTAL STEWARDSHIP Number of installations completed to date MWh production Capital investment of Estimated savings for the period 12 2 868 R4.0 million R5.2 million (Total capital investment of R76 million) (February 2026 YTD) (February 2026 YTD) (February 2
Slide 30: Projects Demonstrating Social Commitment
PROJECTS DEMONSTRATING SOCIAL COMMITMENT We invested R1.5 million towards supplier development, supporting growth and opportunities for local businesses, R1.8 million towards social upliftment efforts, enhancing the quality of life and well-being of our communities, and R0.4 million towards a cleani
Slide 31: Financial Results and Capital Management
FINANCIAL RESULTS AND CAPITAL MANAGEMENT The Park
Slide 32: Distributable Earnings (SA REIT FFO)
DISTRIBUTABLE EARNINGS (SA REIT FFO) Unaudited Unaudited % 28 February 2026 28 February 2025 Revenue growth of 2.1% with Residential change R’000 R’000 and Retail shopping centres 1 056 204 contributing the highest growth Revenue 2.1 1 077 933 Sundry income 80.3 119 66 Doubtful debts at 2.3% of rent
Slide 33: Distributable Earnings Continued
DISTRIBUTABLE EARNINGS CONTINUED Property expenditure spread Administration cost spread (R’million) (R’million) 200 184 181 40 36 36 180 35 160 30 140 120 25 100 84 85 90 85 20 77 82 16 80 71 14 64 15 60 41 39 10 40 26 26 5 20 5 3 0 0 Assessment Collection Bad debts Cleaning, Security Utilities Othe
Slide 34: Like-for-Like Performance
LIKE-FOR-LIKE PERFORMANCE UNDERLYING NPI GROWTH OF 5.1% WITH REPORTED PERFORMANCE IMPACTED BY TWO MAJOR VACANCIES Rental income at Rental income at 28 February 2026 28 February 2025 Increase Segment R’million R’million % Rental income impact Residential 280.6 265.6 5.7 Material decrease in Hatfield
Slide 35: Abridged Condensed Consolidated Statement of Financial Position
ABRIDGED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited Unaudited 28 February 2026 28 February 2025 Fair value increase of 0.3% Assets R’000 R’000 (Weighted average increase of 6.2% to Non-current assets 10 703 754 10 676 706 R53.7 million per property) Investment property 10 637 7
Slide 36: Abridged Condensed Consolidated Statement of Financial Position Continued
ABRIDGED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED Unaudited Unaudited 28 February 2026 28 February 2025 Equity and Liabilities R’000 R’000 Equity 6 644 076 6 471 044 Borrowings stable at R4.342 billion Non-current liabilities 4 126 102 3 983 876 (FY2025: R4.333 billion) Inter
Slide 37: Dividend Policy
DIVIDEND POLICY OCTODEC’S DIVIDEND POLICY IS BASED ON retaining sufficient funds (±R100.0 million per annum) for defensive capital spend, development, and acquisition opportunities as and when these arise; maintaining a strong balance sheet with an acceptable loan to value ratio – medium- to lon
Slide 38: Stable Investment Property Valuations
STABLE INVESTMENT PROPERTY VALUATIONS Investment property R11.2 billion (2025: R11.2 billion) Fair value increase of 0.3% Like-for-like fair value increase of 6.2% to R53.7 million per property 39 properties, representing 10.8% of the portfolio, with a carrying amount of R1.2 billion, were ext
Slide 39: Diverse Portfolio of 208 Properties – Valuation Inputs
DIVERSE PORTFOLIO OF 208 PROPERTIES – VALUATION INPUTS* Fair value Average value Capitalisation Long range Expense Size to Property type Number R’billion per m2 rate % vacancy % ratio % portfolio % MIP – Residential & Street Shops 36 R2.6 R8 343 10.0 7.2 36.4 23.6 MIP – Offices & Street Shops 42 R2.
Slide 40: Capital Allocation and Requirements
CAPITAL ALLOCATION AND REQUIREMENTS STRATEGY IN ACTION: DELIVERY AGAINST CLEAR PRIORITIES PORTFOLIO REPOSITIONING THROUGH ASSET RECYCLING AND REDEPLOYMENT Targeted disposal of non-core, mothballed, and sub-R10.0 million assets o disciplined capital recycling into assets exceeding R100.0m, enhancin
Slide 41: Disposal of Properties
DISPOSAL OF PROPERTIES AT 28 FEBRUARY 2026 Gross Profit/ (Loss) proceeds on disposal Property Name R’million R’million Exit yield % BP Leyds Street 24.5 6.8 9.8 Soutwest Properties 9.4 (0.7) 8.2 Benrico 9.0 0.1 4.7 Carlzeil (2) 8.0 (0.2) 11.0 Focus House 7.9 (0.4) (11.0) Crown Court 7.5 (0.1) 18.7 D
Slide 42: HY2026 Deployment of Capital
HY2026 DEPLOYMENT OF CAPITAL FY2026 budget Capital requirement Spend (R’m) R192 million Compliance (Fire and Life Safety) 6 Government lease commitments (upgrades) 10 Tentant installations 4 Capital expenditure at Various small capital requirements 10 H1 FY2026 R71 million The Fields Block D − conve
Slide 43: Deployment of Capital Continued
DEPLOYMENT OF CAPITAL CONTINUED FY2026 CAPEX PROJECTS Completed conversion of Dynamech Office Park Regus shared office offering at Water silo installation furnished and shared units refurbishment in progress Killarney Mall at The Fields Block D The Park Yethu Dynamech City on – on Sisulu Sisulu The
Slide 44: FY2026 Deployment of Capital
FY2026 DEPLOYMENT OF CAPITAL Full FY budget Capital requirement Spend (R’m) R192 million Louis Pasteur external building upgrade 25 Compliance (Fire and Life Safety) 2 Government lease commitments (upgrades) 11 Capital expenditure planned for H2 FY2026 Uncommitted capital requirements 29 R121 millio
Slide 45: Deployment of Capital Continued
DEPLOYMENT OF CAPITAL CONTINUED GEZINA CITY Expansion project in progress at Gezina City to create capacity through lifting the roof height as opposed to increasing the footprint Capital investment of R27 million (28 February YTD) Octodec Investments Limited 44 Interim Results for the six months end
Slide 46: Strong Cash Generated from Operations
STRONG CASH GENERATED FROM OPERATIONS Cash flow bridge for the period ended 28 February 2026 447.1 (203.5) (2.7) 30.0 239.9 83.9 (193.0) 136.5 (57.0) (1.4) Cash and bank Cash generated Net finance Taxation Dividend paid - Developments, Net payments Proceeds Net borrowings Cash and bank balances as a
Slide 47: Prudent Capital Management
PRUDENT CAPITAL MANAGEMENT Weighted average interest rate Debt carefully managed within internal targets set Unaudited 28 February 2026 per annum Loan covenant LTV at 38.9% (FY2025: 38.9%) Assets R’billion % o Interest cover ratio (ICR) at 2.38x (FY2025: 2.2x) Bank loans – secured 3.8 8.6 Bank
Slide 48: Diversified Sources of Funding
DIVERSIFIED SOURCES OF FUNDING SUCCESSFUL REFINANCING OF FACILITIES AT IMPROVED MARGINS 28 February 2026 31 August 2025 Corporate bonds o R80 million repaid o R200 million raised for three years at improved margins (c.175bps) 7.7% 12.8% o R100 million raised for three years at 32.3% improved margi
Slide 49: Funding Expiry Profile
FUNDING EXPIRY PROFILE HEDGING STRATEGY CONSIDERS INTEREST RATE CYCLE Loan expiry profile Interest rate derivatives expiry profile (R’million and %) The weighted average term to expiry of the (R’million and %) loans and interest rate derivatives is currently 2.0 years (FY2025: 2.3 years) and 1.4 y
Slide 50: Outlook
OUTLOOK The Fields
Slide 51: Market Outlook and Strategic Direction
MARKET OUTLOOK AND STRATEGIC DIRECTION WELL POSITIONED TO DELIVER THROUGH THE CYCLE MACRO ENVIRONMENT Improving business confidence supported by a relative political stability Moderating inflation and interest rate environment Interest rate outlook remains uncertain due to inflationary pressur
Slide 52: Focused Strategy and Capital Discipline Underpin Long-Term Value Creation
FOCUSED STRATEGY AND CAPITAL DISCIPLINE UNDERPIN LONG-TERM VALUE CREATION GUIDANCE Full-year FY2026 guidance for distributable income and distribution per share growth of between 3% and 5% based on the following assumptions: o Achievement of the forecast letting and rental reversions; o Management
Slide 53: Delivering the Strategy: 12 – 36 Month Roadmap
DELIVERING THE STRATEGY: 12 – 36 MONTH ROADMAP DRIVING PORTFOLIO SIMPLIFICATION, QUALITY, AND SUSTAINABLE RETURNS Next 12 to 18 months 12 to 24 months 24 to 36 months Accelerate disposal of non-core assets to Recycle capital into higher-yielding, Transition to a focused three-pillar portfolio:
Slide 54: Questions and Answers
QUESTIONS AND ANSWERS Silver Place
Slide 55: Appendices
QUESTIONS APPENDICES AND ANSWERS Silver Place Yethu City – on Sisulu
Slide 56: Top 10 Properties
TOP 10 PROPERTIES ACCOUNT FOR 31% OF THE INVESTMENT PROPERTY PORTFOLIO BY VALUE AT 28 FEBRUARY 2026 2 Property Location Sector Size (m ) The Fields Hatfield, Tshwane Mixed use 60 704 Woodmead Value Mart Woodmead, Johannesburg Shopping centre 17 123 Killarney Mall Killarney, Johannesburg Shopping cen
Slide 57: Vacancies as Percentage of Lettable GLA
VACANCIES AS PERCENTAGE OF LETTABLE GLA Total Vacancies (%) Core Vacancies (%)* 45 25 23.4 22.2 40 38.4 38.3 35 20 30 15 25 12.6 12.4 20.4 21.1 20 10 8.7 8.6 8.4 7.9 7.7 15 6.6 9.4 9.1 8.4 10 8 7.7 5 6.6 5 0 0 Offices Retail: Retail: Industrial Residential Offices Retail: Retail: Industrial Resident
Slide 58: Our Vision and Head Office
Our vision To innovate and create sustainable economic value through our investment in a multi-sector property portfolio. We are deeply committed to the communities we serve, partnering with them to shape a forward-looking, inclusive future. By reimagining and transforming buildings, we cultivate vi