Slide 1: Summarised Consolidated Annual Financial Statements FY2024
SUMMARISED FOR THE YEAR ENDED 29 FEBRUARY 2024 CONSOLIDATED ANNUAL PRESENTATION: 22 MAY 2024 FINANCIAL STATEMENTS CREDIBLE PREDICTABLE CONSISTENT
Slide 2: Table of Contents
Table of CONTENTS 01. INTRODUCTION AND ENVIRONMENTAL UPDATE 02. FY2024 CORPORATE PERFORMANCE AND SHARE REPURCHASE UPDATE 03. FY2024 SALIENT DETAILS 04. FY2024 FINANCIAL PERFORMANCE 05. PORTFOLIO OVERVIEW 06. ACQUISITIONS, DISPOSALS, DEVELOPMENTS AND PROPERTY VALUATIONS 07. ESG 08. OUTLOOK 09. GUIDAN
Slide 3: Introduction and Environmental Update
Presenters: Quintin Rossi CEO 01 INTRODUCTION AND ENVIRONMENTAL UPDATE MEGA PARK, BELLVILLE Christiaan Barnard CFO Kim Pfaff-Karg CIO SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 3
Slide 4: The Western Cape Ecosystem: Underpinning the Spear Investment Case
01. Introduction and Environmental Update | THE WESTERN CAPE ECOSYSTEM: UNDERPINNING THE SPEAR INVESTMENT CASE Cape Town Metro ranked 1st for Cape Town maintains SA's lowest Cape Town ranking 1st among Cape Town is SA's most Ratings Afrika found Cape Town All 14 Western Cape Provincial Economic Deve
Slide 5: Environmental Update: FY2024 Operating Environment
01. Introduction and Environmental Update | THE MISSION ENVIRONMENTAL UPDATE 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 FY2024 Operating environment quartile of our peer group. FY2024 OPERATING COST
Slide 6: Environmental Update: FY2024 Operating Environment
01. Introduction and Environmental Update | ENVIRONMENTAL UPDATE FY2024 Operating environment ACQUISITIVE DEVELOPMENT CAPITAL RECYCLING CAPITAL SUSTAINABILITY GROWTH GROWTH • Sale of Liberty Life Building on • Spear share repurchase • 2MW of new solar PV installations • Status: The Island Urban Logi
Slide 7: FY2024 Corporate Performance and Share Repurchase Update
02 FY2024 CORPORATE PERFORMANCE AND SHARE REPURCHASE UPDATE 27 JUNCTION ROAD, PAROW SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 7
Slide 8: Spear Total Return FY2024
02. FY2024 Corporate Performance and Share Repurchase Update | SPEAR TOTAL RETURN FY2024 30% 25% 20% 23.1% 282.4m 33.3m Gross number of Volume traded 15% 10.3% shares issued during period 10% 5% 7.3% 0% -5% -10% 11.80% R245m -15% Ratio of volume Rand value traded traded to shares during period -20%
Slide 9: Share Repurchase Programme
02. FY2024 Corporate Performance and Share Repurchase Update | SHARE REPURCHASE PROGRAMME 26 FY2024 Disposals FY2024 purchases1 (1 172 984) FY2024 CSP issue 24 (886 353) 5 592 674 22 22.3m 22 314 509 20 Treasury shares 18 18 781 172 16 14 Shares ('000 000) 12 10 8 7.9% 6 of total shares 4 2 0 28 Feb
Slide 10: FY2024 Salient Details
03 FY2024 SALIENT DETAILS BRAVO PARK, BLACKHEATH PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 10 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 10
Slide 11: Portfolio Snapshot
03. FY2024 Salient Details | PORTFOLIO SNAPSHOT 29 7.52% 98.92% ASSETS AVERAGE IN-FORCE FY2024 CASH ESCALATIONS COLLECTIONS R4.62BN 426 542M2 R36M PORTFOLIO VALUE GLA NET CASH FROM OPERATING 9.78% ACTIVITIES 93.12% PORTFOLIO VALUE GENERATED INCREASE OCCUPANCY (FY2023) 26 MONTHS R157.6M WALE AVG PROP
Slide 12: Financial Snapshot
03. FY2024 Salient Details | FINANCIAL SNAPSHOT 1.04% FY2024 DIPS growth 82.99 R11.79 31.60% DIPS CENTS TANGIBLE NET LTV (SA REIT) FY2024 ASSET VALUE (TNAV) 78.86 2.79% 47% DPS CENTS FY2024 INCREASE FROM FIXED DEBT RATIO 40.53 Cents FY2023 25 MONTHS Final DPS 95% FY2024 AVERAGE R11.47 AVG DEBT EXPIR
Slide 13: Total Collections
03. FY2024 Salient Details | TOTAL COLLECTIONS 99% R608 391 R601 833 98.92% Billed (R'000) 97% FY2024 98% Collected (R'000) Collected to billed collected vs billed per sector Commercial Industrial Retail Collections have been in line with management’s forecast Billings reflect revenue including reco
Slide 14: FY2024 Financial Performance
04 FY2024 FINANCIAL PERFORMANCE NORTHGATE PARK, BROOKLYN PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 14 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 14
Slide 15: Consolidated Statement of Comprehensive Income
04. FY2024 Financial Performance | Group CONSOLIDATED STATEMENT OF February 2024 February 2023 Variance Like-for-like (excl. smoothing) COMPREHENSIVE INCOME Property revenue R'000 R'000 % % FOR THE YEAR ENDED 29 FEBRUARY 2024 – Contractual rental income 440 424 427 085 3.12 5.41 – Tenant recoveries
Slide 16: Reconciliation Between Earnings and Distributable Earnings
04. FY2024 Financial Performance | RECONCILIATION SA REIT funds from operations (SA REIT FFO) per share BETWEEN EARNINGS AND February 2024 R’000 February 2023 R’000 Profit or loss per IFRS Statement of Comprehensive Income attributable to the parent 362 740 182 205 DISTRIBUTABLE EARNINGS Adjusted fo
Slide 17: Consolidated Statement of Financial Position
04. FY2024 Financial Performance | CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 29 FEBRUARY 2024 Spear REIT Limited Group Group February February 2024 2023 ASSETS R'000 R'000 Non-current assets 4 185 999 3 795 087 31.60% Current assets TOTAL ASSETS 492 423 4 678 422 461 621 4 256 708 Loan-to-v
Slide 18: TNAV Bridge and SA REIT LTV
04. FY2024 Financial Performance | TNAV BRIDGE AND SA REIT LTV TNAV BRIDGE Profit for the year (excl. fair Fair value adjustment IFRS 2 expense for value adjustment) and impairments 14 future CSP R0.71 R0.68 R0.03 R11.79 12 R11.47 (R0.30) (R0.10) (R0.05) (R0.66) 10 Distributions paid Capital raise A
Slide 19: Funding Maturity and Funders
04. FY2024 Financial Performance | FUNDING MATURITY FUNDERS 31.60% AVERAGE COST OF 9.48% GROUP NET DEBT PROFILE AS AT 29 FEBRUARY 2024 FUNDING 82 bps LOAN-TO-VALUE 6% FY2028 41% FY2026 R180m R391m 15% TOTAL FY2029 Liquidity Debt refinanced Fixed debt NET DEBT Variable DEBT EXPIRY availability debt 4
Slide 20: Balance Sheet and Funding Update
04. FY2024 Financial Performance | BALANCE SHEET AND FUNDING UPDATE FEBRUARY APRIL COVENANTS 2024 2024 LT V 50% 31.60% 30.78% 2.00 2.28 2.78 I CR times times times 100 FAIRWAY CLOSE, PAROW SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 20
Slide 21: Portfolio Overview
05 PORTFOLIO OVERVIEW LIBERTY LIFE BUILDING, CENTURY CITY PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 21 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 21
Slide 22: Sectoral Split by Value, Revenue and GLA
05. Portfolio Overview | SECTORAL SPLIT BY VALUE, REVENUE AND GLA R4.6bn R607m 426 542m2 48% 35% 16% 1% 48% 36% 16% 30% 59% 11% Value of properties Property revenue (excluding smoothing) Gross lettable area (m 2) 29 93% 14 9 6 84% 97% 96% Number of properties Property occupancy (%) Commercial Indust
Slide 23: Sectoral Split by Sector: Industrial
05. Portfolio Overview | SECTORAL SPLIT BY SECTOR Industrial R1 623m 252 941m2 97% R218 538 39% 12% 49% 41% 11% 47% 100 95 95 36% 9% 55% Property value Gross lettable area (m 2) Property occupancy (%) Property revenue (R’000) Logistics Urban Logistics Manufacturing /Light Industrial SUMMARISED CONSO
Slide 24: Sectoral Split by Sector: Commercial
05. Portfolio Overview | SECTORAL SPLIT BY SECTOR Commercial R2 213m 126 235m2 22% 17% 7% 34% 5% 14% 18% 13% 9% 36% 7% 2% 1% 13% Property value Gross lettable area (m 2) 84% R292 103 78% 86% 54% 95% 77% 100% 88% 20% 17% 10% 37% 4% 12% Property occupancy (%) Property revenue (R’000) CBD Tygervalley P
Slide 25: Sectoral Split by Sector: Retail
05. Portfolio Overview | SECTORAL SPLIT BY SECTOR Retail R734m 47 366m2 96% R96 592 79% 21% 54% 46% 95% 97% 81% 19% Property value Gross lettable area (m 2) Property occupancy (%) Property revenue (R’000) Convenience Retail Destination Retail SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEA
Slide 26: FY2024 Letting Activity
05. Portfolio Overview | FY2024 LETTING ACTIVITY Expiries and Gross rental Average gross Renewals/ Gross new Average gross Rental vacated at expiry expiry rental New lets rental new rental reversion GLA m² R'000 R/m² GLAm² R'000 R/m² % Commercial 36 096 5 561 154.05 37 602 5 522 146.85 (4.67) Indust
Slide 27: Tenant and Vacancy Profile
Analysis of the property portfolio in respect of 05. Portfolio Overview | tenant profiles TENANT AND VACANCY PROFILE ANALYSIS OF THE PROPERTY PORTFOLIO AS 444 426 542m 2 397 234m 2 Number of tenants GLA OCCUPIED AT 29 FEBRUARY 2024 GLA: 426 542m 2 Large national and international Based on GLA tenant
Slide 28: Sectoral Performance - FY2024
05. Portfolio Overview | SECTORAL PERFORMANCE - FY2024 Operating environment remains tough amid macroeconomic headwinds RETAIL COMMERCIAL INDUSTRIAL 47 366M2 GLA 126 235M2 GLA 252 941M2 GLA Trading has been consistent within the Offices: Slower progress made in vacancy Strong trading during FY2024 w
Slide 29: Sectoral Performance: General Business and Portfolio Update
05. Portfolio Overview | SECTORAL PERFORMANCE - FY2024 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 collections in
Slide 30: Lease Expiry by GLA
05. Portfolio Overview | LEASE EXPIRY BY GLA Lease expiry profile based on GLA Total Total Total Total Total Total Total 7% 2% 16% 16% 24% 7% 28% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 16% Average 0% Vacant Monthly Expiries Expiries Expiries Expiries Expiries 03/2024 – 02/2025 03/2025 – 02/2026 03
Slide 31: Acquisitions, Disposals, Developments and Property Valuations
06 ACQUISITIONS, DISPOSALS, DEVELOPMENTS AND PROPERTY VALUATIONS RADNOR ROAD, PAROW PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 31 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 31
Slide 32: Spear Investment Strategy
06. Acquisitions, Disposals, Developments and Property Valuations | SPEAR INVESTMENT STRATEGY 1. 2. ACQUISITIONS NON-CORE DISPOSALS • Exclusively invest in the Western Cape • Industrial and retail bias • Minimum asset size R100 million (unless strategic) • Quality over Quantity • Unlock embedded por
Slide 33: Acquisitions: Acquisitive Growth
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIONS: ACQUISITIVE GROWTH ACQUISITION COST: R185 MILLION EFFECTIVE FY2024 YIELD: 10.17% WALE: GLA: SECTOR: ACQUISITION STATUS: THE ISLAND 27 months 21 774m2 Industrial/ YIELD: Transferred 9 MILNER ROAD, PAARDEN EILAND Urban L
Slide 34: Development Growth: GTX Park, George
06. Acquisitions, Disposals, Developments and Property Valuations | DEVELOPMENT GROWTH INDUSTRIAL PARK: FUTURE PHASE 1 CIVILS DEVELOPMENT COMMENCEMENT GEORGE AIRPORT GTX PARK, OWNERSHIP DEVELOPABLE SECTOR: DEVELOPMENT COST: TARGET STATUS: STAKE: GLA: Industrial - Warehousing, R300m YIELD: Bulk infra
Slide 35: Development Growth (Existing Portfolio)
06. Acquisitions, Disposals, Developments and Property Valuations | DEVELOPMENT GROWTH (EXISTING PORTFOLIO) ESTIMATED DEVELOPMENT COST: R66.5 MILLION LEASE PERIOD: GLA: SECTOR: TARGET STATUS: BRAVO PARK EXTENSION, TBA 7 000m2 Industrial YIELD: Planning RANGE ROAD, BLACKHEATH 10% phase SUMMARISED CON
Slide 36: Development Growth: Marine Place
06. Acquisitions, Disposals, Developments and Property Valuations | DEVELOPMENT GROWTH GLA TO BE SECTOR: DEVELOPMENT COST: TARGET STATUS: MARINE PLACE, MARINE DEVELOPED: Mixed use R1.4bn YIELD: Commencement DRIVE, PAARDEN EILAND 52 000m2 10% TBA SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS /
Slide 37: Property Valuations
06. Acquisitions, Disposals, Developments and Property Valuations | PROPERTY VALUATIONS Valuation summary and assumptions February 2024 February 2023 Valuation excl land (R'000) 4 570 974 4 165 000 Number of properties 29 28 % of portfolio valued externally (%) 65 48 Valuation rate (R/m²) Industrial
Slide 38: Acquisitions and Disposals
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIONS AND DISPOSALS Property sales APPROXIMATE GLA BOOK VALUE SALE PRICE NET EXIT YIELD NET DISPOSAL PROPERTY LOCATION SECTOR (M²) (R '000) (R '000) (%) EFFECTIVE DATE PROCEEDS USE Liberty Life Building Century City Commercia
Slide 39: Acquisitive Growth: Emira Portfolio Industrial
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIVE GROWTH Emira Portfolio INDUSTRIAL NORTHPOINT THE STUDIOS, FREEWAY PARK, 14-16 BOSTON CIRCLE, STEELPARK INDUSTRIAL PARK, ATLAS GARDENS, MAITLAND AIRPORT INDUSTRIA INDUSTRIAL PARK, BRACKENFELL DURBANVILLE BELLVILLE VALUE:
Slide 40: Acquisitive Growth: Emira Portfolio Retail/Medical
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIVE GROWTH Emira Portfolio RETAIL/MEDICAL PARKLANDS HEALTH CENTRE, PARKLANDS THE VIEW, TYGERVALLEY VALUE: VALUE: R49.5m R122.5m GLA: GLA: 2 594m2 6 659m2 RATE: RATE: R19 082/m2 R18 396/m2 SUMMARISED CONSOLIDATED ANNUAL FINAN
Slide 41: Acquisitive Growth: Emira Portfolio Offices
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIVE GROWTH Emira Portfolio OFFICES NEWLANDS TERRACES, NEWLANDS VALUE: R73.6m GLA: 5 217m2 BOUNDARY TERRACES, NEWLANDS RATE: R14 108/m2 VALUE: R210.5m GLA: 8 676m2 RATE: R24 262/m2 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STA
Slide 42: Acquisitive Growth: Emira Portfolio Offices
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIVE GROWTH Emira Portfolio OFFICES 9 LONG STREET, HAMILTON HOUSE, DE CHIAPPINI HOUSE, DE WATERSIDE PLACE, CAPE TOWN CBD WATERKANT, CAPE TOWN WATERKANT, CAPE TOWN TYGERVALLEY VALUE: VALUE: VALUE: VALUE: R133.2m R60.8m R20m R9
Slide 43: Portfolio Segmentation Post Disposals and Emira Acquisition
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIVE GROWTH Portfolio segmentation post Liberty Life and 142 Edward disposals & Emira Portfolio acquisition Spear Portfolio Emira Portfolio Combined Portfolio Value of properties Value of properties Value of properties 42% 39
Slide 44: ESG
07 ESG VIKING BUSINESS PARK, EPPING PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 44 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 44
Slide 45: Sustainability Update: Solar PV
07. ESG | SUSTAINABILITY UPDATE 19 478 116 Total Number of Total Number of Panels Inverters Summary of solar PV Number of Average solar properties with solar penetration rate (%) % of portfolio with solar Self-funded Roof rental Financed 16 -1 2 8 6 Total Future: 2 7 6 15 21 31 55 54 -1 Average tota
Slide 46: Sustainability Update
07. ESG | SUSTAINABILITY UPDATE Sustainability-linked loans Socio-economic upliftment BEE - Equity strategy Value: R230 million Non-profits & NGOs • Total corporate guarantees for Spear equity loans: Term: 3 Years • Total guarantees = R77.8 million Rate: 3-month JIBAR + 1.79% • No cash provided by S
Slide 47: Outlook
08 OUTLOOK 2 LONG STREET, CAPE TOWN PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 47 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 47
Slide 48: Outlook FY2025
08. Outlook | OUTLOOK FY2025 The macroeconomic climate remains extremely challenging despite the stronger performance of the Western Cape in various sectors of the economy. Boxing smart in FY2025 is the game plan as we are confident that the real estate sector will turn the corner this year The West
Slide 49: Outlook FY2025
08. Outlook | OUTLOOK FY2025 Spear retains a healthy pipeline of NAV unlock opportunities across the core portfolio with brownfield redevelopments and greenfield developments in our quiver Spear’s ESG strategy will continue to deliver on its sustainability outcomes and focus on energy and water secu
Slide 50: Guidance
09 GUIDANCE SABLE SQUARE SHOPPING CENTRE, MILNERTON PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 50 SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 50
Slide 51: Guidance
09. Guidance | Assets GUIDANCE The macroeconomic climate remains extremely challenging despite the stronger performance of the Western Cape in various sectors of the economy. Consistent obsessive Tenants Management expects there to be net operating income (NOI) growth at property level in the year a
Slide 52: Thank You
THANK YOU Questions? Email questions to INFO@SPEARPROP.CO.ZA Live Q&A after presentation spearreitlimited Spear REIT Limited Spear REIT Limited @SpearREIT SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 29 FEBRUARY 2024 52