Slide 1: Coming of Age: Pre-Close Results Presentation
COMING OF AGE Pre-Close Results Presentation for the period ended 30 September 2022
Slide 2: Agenda
AGENDA • Key Focus Areas Darren Wilder • Fairvest Portfolio Darren Wilder • Financial Update Jacques Kriel • Conclusion Darren Wilder • Q&A Nazeem Samsodien Fairvest Pre-close Sep-22 // 2
Slide 3: Key Focus Areas / Business Update
KEY FOCUS AREAS/Business Update Creating a strong platform of growth Strategic Objectives • Recycle out of Industrial, Office and Residential assets into Retail assets • Continue to simplify the business • To maintain collectable arrears at below 2% of gross income • Weighted average growth on lease
Slide 4: Fairvest at a Glance
FAIRVEST AT A GLANCE Darren Wilder CEO Fairvest Pre-close Sep-22 // 4
Slide 5: Fairvest at a Glance
FAIRVEST AT A GLANCE Diverse portfolio Market Cap 1 149 170 m2 of R11.8bn R5.5bn of GLA Investments Effective date of Gearing levels merger 26 January 61.0% in Indluplace 39.8% 2022 5.1% in Dipula Fairvest Pre-close Sep22 // 5
Slide 6: Fairvest Property Portfolio
FAIRVEST PROPERTY PORTFOLIO Fairvest Pre-close Sep-22 // 6
Slide 7: Fairvest Portfolio at a Glance
FAIRVEST PORTFOLIO AT A GLANCE Diverse portfolio of R11.8bn 141 assets 1 149 170m2 Average value (excl. Indluplace) of GLA per property R84.0m Sectoral split by GLA Vacancy stable at Tenant retention Retail Office Industrial 48.5% 26.6% 24.9% 7.4% 86.5% (31 March – 7.2%) (31 March – 88.5%) Weighted
Slide 8: Regional & Sector Split
REGIONAL & SECTOR SPLIT Total GLA per region Total GLA per Sector 4% 3% 1% 5% 25% 6% 8% 50% 49% 11% Gauteng Western Cape 26% KwaZulu-Natal 13% Eastern Cape Retail Limpopo Office Total revenue per region North West Total Revenue per Sector Industrial 5% 1% Northern Cape 10% 5% 6% Free State 35% Mpuma
Slide 9: Portfolio Leasing Activity
PORTFOLIO LEASING ACTIVITY Lease expiry profile by GLA New deals Aug-22 Mar-22 300 000 25% Number of leases 389 209 250 000 20% Total GLA m2 70 821 35 268 200 000 15% 15% Weighted average gross rental achieved 104.82 102.82 150 000 (R/m2) 7% 10% 100 000 Weighted average escalations 6.5% 6.5% 6% 50 0
Slide 10: Office Update
OFFICE UPDATE Fairvest Pre-close Sep-22 // 10
Slide 11: Fairvest Office Portfolio at a Glance
FAIRVEST OFFICE PORTFOLIO AT A GLANCE % of total portfolio by: 305 869m2 38 assets GLA – 26.6% of GLA Revenue– 24.0% Vacancy decreased Tenant retention to at 84.0% 15.4% (31 March – 83.2%) (31 March – 16.7%) WALE Weighted average Weighted average 23 months rental per m2 R111.43 Escalation 6.7% (31 M
Slide 12: Office Leasing Activity
OFFICE LEASING ACTIVITY Office Lease expiry profile by GLA New deals Aug-22 Mar-22 90 000 25% 80 000 Number of leases 98 49 70 000 Total GLA m2 16 292 7 745 60 000 16% 17% 50 000 Weighted average gross rental achieved 13% 92.96 80.53 40 000 12% (R/m2) 30 000 7% 6% Weighted average escalations 7.6% 8
Slide 13: Industrial Update
INDUSTRIAL UPDATE Fairvest Pre-close Sep-22 // 13
Slide 14: Industrial Portfolio
INDUSTRIAL PORTFOLIO Fairvest Pre-close Sep-22 // 14
Slide 15: Fairvest Industrial Portfolio at a Glance
FAIRVEST INDUSTRIAL PORTFOLIO AT A GLANCE % of total portfolio by: 285 723 m2 26 assets GLA – 24.9% of GLA Revenue – 10.2% Vacancy increased to Tenant retention 4.0% 87.6% (31 March – 1.0%) (31 March – 100%) WALE Weighted average Weighted average 23.3 months rental per m2 R44.76 escalation 6.6% (31
Slide 16: Industrial Leasing Activity
INDUSTRIAL LEASING ACTIVITY Industrial Lease expiry profile by GLA 100 000 New deals Aug-22 Mar-22 33% 90 000 30% Number of leases 52 29 80 000 70 000 Total GLA m2 21 996 10 128 60 000 Weighted average gross rental achieved 43.31 41.73 50 000 (R/m2) 40 000 11% 11% Weighted average escalations 7.0% 7
Slide 17: Retail Update
RETAIL UPDATE Fairvest Pre-close Sep-22 // 17
Slide 18: Retail Portfolio
RETAIL PORTFOLIO Fairvest Pre-close Sep-22 // 18
Slide 19: Fairvest Retail Portfolio at a Glance
FAIRVEST RETAIL PORTFOLIO AT A GLANCE Tenant grading: 557 578m2 A B Grade C 77 assets Grade Grade of GLA 66% 12% 22% % of total portfolio by: Vacancy stable Tenant retention GLA – 48.5% at 4.8% 87.2% Revenue– 65.8% (31 March – 86.4%) WALE Weighted average Weighted average 31.8 months rental per m2 R
Slide 20: Retail Leasing Activity
RETAIL LEASING ACTIVITY Retail Lease expiry profile by GLA 120 000 20% New deals Aug-22 Mar-22 19% 18% 100 000 16% Number of leases 239 131 14% 80 000 Total GLA m2 32 533 17 394 Weighted average gross rental achieved 60 000 160.74 146.89 (R/m2) 40 000 Weighted average escalations 6.2% 6.2% 5% 6% WAL
Slide 21: Financial Update
FINANCIAL UPDATE JACQUES KRIEL CFO Fairvest Pre-close Sep-22 // 21
Slide 22: Balance Sheet update
Balance Sheet update • LTV expected to remain below 40% by year-end. • The company expects to meet all bank covenants comfortably. • Loan facilities of R1.9bn expire in the next 6 months. • Of this approx. R1.7bn has already been refinanced/renewed in principal. • Exploring sustainability linked fun
Slide 23: Debt and Hedge Maturity Profile
DEBT AND HEDGE MATURITY PROFILE 60,0% 59% 57% 50,0% 40,0% 30,0% 27% 25% 20,0% 16% 16% 10,0% 0,0% Expiry in 12 months Expiry in 24 months Expiry in 36 months Debt Expiry Hedge Expiry Fairvest Pre-close Sep-22 // 23
Slide 24: Conclusion
CONCLUSION DARREN WILDER CEO Fairvest Pre-close Sep-22 // 24
Slide 25: Q&A
Q &A NAZEEM SAMSODIEN Fairvest Pre-close Sep-22 // 25