Spear Reit Ltd. · JSE:SEA
Spear Reit — Investor Presentation (February 2024)
22 slides from Spear Reit's investor presentation, Feb 29, 2024
Slide 1: Pre-Close Investor Presentation
FY 2024 PRE-CLOSE INVESTOR PRESENTATION FOR THE PERIOD ENDED 31 JANUARY 2024 PRESENTATION: 29 FEBRUARY 2024
Slide 2: Table of Contents
Contents Table of Contents 01. ENVIRONMENTAL UPDATE 02. SPEAR OPERATIONAL UPDATE 03. FY2024 SALIENT DETAILS — YTD JANUARY 2024 04. SECTORAL PERFORMANCE — FY2024 05. OUTLOOK 06. GUIDANCE 07. QUESTIONS PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 2
Slide 3: Environmental Update
01 Environmental Update EMAIL QUESTIONS TO INFO@SPEARPROP.CO.ZA PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 3
Slide 4: Environmental Update: Mission and Operating Environment
01. Environmental Update Environmental Update The Mission To be the leading Western Cape-focused REIT and to consistently grow our distribution per share ahead of inflation and to operate within the top quartile of our peer group. FY2024 Operating environment FY2024: Operating cost creep has remaine
Slide 5: Environmental Update: Sustainability and Development Growth
01. Environmental Update Environmental Update FY2024 Operating environment Sustainability: Development growth: • 2MW of new solar PV • Industrial: GTX Park, George: installations completed YTD Phase 1 bulk infrastructure • 60%+ of Spear portfolio works commenced October assets installed with solar P
Slide 6: Spear Operational Update
02 Spear Operational Update PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 6
Slide 7: Spear Operational Update
02. Spear Operational Update Spear Operational Update YTD January 2024 Operational update YTD January 2024 Operation focus areas Status quo: Commercial vacancy mitigation Commercial • 2023 ended with improved lease conversions with No.1 Waterhouse, Bloemhof and Liberty Vacancy creep mitigation Life
Slide 8: FY2024 Salient Details
03 FY2024 Salient Details YTD JANUARY 2024 PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 8
Slide 9: Portfolio Snapshot
03. FY2024 Salient Details — YTD January 2024 Portfolio Snapshot 28 ASSETS NUMBER OF PROPERTIES R4.47BN 5.95%* R157.5M R10 340/M2 PORTFOLIO PORTFOLIO AVERAGE AVERAGE PROPERTY VALUE VALUE INCREASE PROPERTY VALUE VALUATION FY2023 7.5% LETTING AVERAGE IN-FORCE ESCALATIONS 426 542M2 93.36% 26 MONTHS R10
Slide 10: Financial Snapshot
03. FY2024 Salient Details — YTD January 2024 Financial Snapshot DISTRIBUTION 96% ± 95% 43.37% 5.99% PROPOSED FINAL AVERAGE FY2024 SA REIT COST-TO- SA REIT ADMIN PAYOUT RATIO PAYOUT RATIO INCOME RATIO COST-TO-INCOME TANGIBLE NET ASSET VALUE (TNAV) R11.60 TNAV 1.13% INCREASE R11.47 ± (3.5%) FROM FY20
Slide 11: Total Collections
03. FY2024 Salient Details — YTD February 2024 Total Collections (as at 23 February 2024) 97% R607 637 R590 943 97.25% FY2024 YTD BILLED (R'000) COLLECTED (R'000) COLLECTED TO BILLED collected vs 98% billed per sector Collections include billings up to February 2024 Collections have been in line wit
Slide 12: Letting Activity
03. FY2024 Salient Details — YTD January 2024 Letting Activity YTD FY2024 Expiries and Gross rental at Average gross Renewals/ Gross new Average gross Rental vacated expiry expiry rental New lets rental new rental reversion GLAm² R'000 R/m² GLAm² R'000 R/m² % Commercial 35 643 5 506 154.48 37 363 5
Slide 13: Balance Sheet and Funding Update
03. FY2024 Salient Details — YTD January 2024 Balance Sheet and Funding Update Covenants JANUARY 2024 FY2023 COVENANTS YTD JANUARY 2024 WEIGHTED AVERAGE 25 30 VARIABLE EXPIRY MONTHS MONTHS LTV 50% 40.18%* WEIGHTED AVERAGE FIXED EXPIRY 21 MONTHS 16 MONTHS YTD JANUARY FY2023 WEIGHTED AVERAGE 9.60% 8.6
Slide 14: Sectoral Performance
04 Sectoral Performance FY2024 PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 14
Slide 15: Sectoral Performance - FY2024 YTD
04. Sectoral Performance — FY2024 Sectoral Performance - FY2024 YTD Operating environment remains tough amid macroeconomic headwinds RETAIL 48 951M2 GLA COMMERCIAL 131 923M2 GLA INDUSTRIAL 245 714M2 GLA Trading has been consistent within the Offices: Slower progress made in vacancy Strong trading du
Slide 16: Sectoral Performance - General Business and Portfolio Update
04. Sectoral Performance — FY2024 Sectoral Performance - FY2024 YTD GENERAL BUSINESS AND PORTFOLIO UPDATE Operating environment remains challenging Office sector showing recovery with numerous new leases concluded Ongoing implementation and roll-out of solar PV and H2O augmentation strategy Rental c
Slide 17: Outlook
05 Outlook PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 17
Slide 18: Outlook
05. Outlook Outlook The macroeconomic climate remains extremely challenging despite the stronger performance of the Western Cape in various sectors of the economy The national unemployment rate must be mitigated through job growth and investment by both the private and public sector in order to driv
Slide 19: Outlook (continued)
05. Outlook Outlook (continued) Nodal expansion of residential areas and mixed-use precincts have driven demand for space solutions across the Spear portfolio and will drive economic investment and development within the Western Cape for the foreseeable future as the entire province is positioned as
Slide 20: Guidance
06 Guidance PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 20
Slide 21: Guidance
06. Guidance Guidance Assets Management maintains its guidance that the full year FY2024 DIPS will be within a Consistent range of a 0% — 1.5% higher than the DIPS of FY2023. obsessive Tenants focus Spear's guidance is based on, and informed and impacted by the following: Business Loadshedding stage
Slide 22: Questions?
07 Questions? Email questions to INFO@SPEARPROP.CO.ZA Live Q&A after presentation spearreitlimited Spear REIT Limited Spear REIT Limited @SpearREIT PRE-CLOSE INVESTOR PRESENTATION / FOR THE PERIOD ENDED 31 JANUARY 2024 22