Stor-age Property Reit Ltd. · JSE:SSS
Stor-age Property Reit — Investor Presentation (May 2020)
21 slides from Stor-age Property Reit's investor presentation, May 2020
Slide 1: Capital Raise Presentation
STOR-AGE PROPERTY REIT CAPITAL RAISE PRESENTATION MAY 2020 STOR-AGE PROPERTY REIT LIMITED 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Page Executive summary 3 Snapshot 4 Investment case 5 Covid-19 6 South Africa 8 United Kingdom 9 The Platform 10 Share price performance 11 Price / NAV comparison 13 Capital raise FY19 – deployment 14 Capital raise FY20 15 Loan to value – flightpath 20 STOR-AGE PROPERTY REIT LIM
Slide 3: Executive Summary
EXECUTIVE SUMMARY • Accelerated bookbuild of up to R250 million, in part, by way of a vendor consideration placing and the balance in terms of the existing general authority to issue shares for cash Capital raise • Pricing – to be determined on issue • Right to increase the size of the equity raise
Slide 4: Snapshot
SNAPSHOT Listing date November 2015 JSE sector Speciality REITs Profile Highly specialised, low risk, income paying self storage REIT Self storage 10 publicly traded self storage REITs universe (US: 5, UK: 2, EU1: 1, Aus: 1, SA: 1) Market R5.1 billion² capitalisation Total South Africa United Kingdo
Slide 5: Investment Case
INVESTMENT CASE • Niche growth sector globally, driven by societal trends – consumerism, densification and an increasingly mobile population Resilient sector with growth opportunities • Revenue and occupancies across SA and UK portfolios increasing globally • Sector growth in SA and the UK positive,
Slide 6: Covid-19 – Our Approach Entering Lockdown
COVID-19 – OUR APPROACH ENTERING LOCKDOWN • All head office employees provided with means to continue working from home • Store staff carried on working on a rotational basis to ensure social distancing could be practiced at all times at the properties i.e. one person in the closed retail store on-s
Slide 7: Covid-19 – Our Reaction During Lockdown
COVID-19 – OUR REACTION DURING LOCKDOWN • Unknown depth and duration of the current downcycle Managing • Significant uncertainty due to constantly changing government regulations uncertainty and risk • Rapid acceleration of multi-year change taking place within weeks • Tenant risk – payment defaults
Slide 8: South Africa
SOUTH AFRICA Overview • SA’s leading and largest self storage property fund • Portfolio dominated by high profile, big box self storage properties in prime locations • Deep product understanding, outstanding real estate expertise, excellent dual-market operations platform and sector leading digital
Slide 9: United Kingdom
UNITED KINGDOM Overview • 6th Largest UK self storage brand • Operating 28 properties throughout the UK • Highly scalable, well-invested infrastructure and experienced management • Long-established relationships with independent operators = opportunity Performance • Strong operating performance¹ to
Slide 10: The Platform
THE PLATFORM • Highly sophisticated and scalable dual market platform – can be leveraged into new markets • Unique benefit relative to UK peers – cost effective SA head office infrastructure, homogenous product, same language and similar timeline Operations platform – • Vastly experienced management
Slide 11: Share Price Performance – Relative to SAPY
SHARE PRICE PERFORMANCE – RELATIVE TO SAPY Consistently outperformed the listed property index and SA REITs since listing in 2015, with ever improving liquidity 2.5 year performance: positive divergence relative to SAPY 170 50 2 45 150 40 Number of shares (Millions) 130 124 35 1 30 Indexed Price 110
Slide 12: Share Price Performance – Relative to UK Peers
SHARE PRICE PERFORMANCE – RELATIVE TO UK PEERS Share price performance in GBP since listing in 2015 Stor-Age has a c.40% exposure to GBP assets through its Storage King platform Stor-Age is significantly diversified and entrenched within developed markets, with c.40% exposure to GBP assets. This geo
Slide 13: Price / NAV Comparison – SAPY and UK Peers
PRICE / NAV COMPARISON – SAPY AND UK PEERS Stor-Age’s premium to NAV rating is consistent with its UK peers, with further potential valuation upside evident Self storage REITs trading at premiums to NAV • Self storage businesses which operate sizable portfolios benefit from a unique operational plat
Slide 14: Capital Raise FY19 – Deployment
CAPITAL RAISE FY19 – DEPLOYMENT Capital raised • Total capital raised in FY19 – R985m › September 2018 – R400m › March 2019 – R585m Deployment • Proceeds were used to maintain target gearing levels and strengthen the balance sheet to execute on pipeline acquisition opportunities • Total value of acq
Slide 15: Capital Raise FY20
CAPITAL RAISE FY20 STOR-AGE PROPERTY REIT LIMITED 15
Slide 16: Capital Raise FY20 – Pipeline
CAPITAL RAISE FY20 – PIPELINE Developments South Africa • Current development projects include › Stor-Age Tygervalley c.R88m › Stor-Age Cresta c.R100m › Stor-Age Sunningdale c.R66m (50:50 JV) United Kingdom • Storage King Development JV › Heads of Terms entered – UK based private equity real estate
Slide 17: Stor-Age Tygervalley – New Development
STOR-AGE TYGERVALLEY – NEW DEVELOPMENT Located in Cape Town’s northern suburbs, the property is situated on Durban Road with visibility to the intersection of Durban Road and the N1 highway. The property will comprise an estimated 7 100m² GLA over six levels with the design Durbanville catering for
Slide 18: Stor-Age Cresta – New Development
STOR-AGE CRESTA – NEW DEVELOPMENT Located prominently on the corner of Weltevreden Road and Valley Lane, the new Stor-Age Cresta will sit directly opposite the open parking area to the Cresta Shopping Mall. The property will comprise 7 400m² of GLA over six levels with the design also catering for s
Slide 19: Stor-Age Sunningdale – New Development
STOR-AGE SUNNINGDALE – NEW DEVELOPMENT Table Bay Mall Located prominently on the corner of Berkshire Boulevard and Whitehall Way and close to the new Table Bay Mall, the property will comprise an estimated 6 350m² GLA with Atlantic Beach excellent visibility to commuters accessing the retail and res
Slide 20: Loan to Value – Flightpath
LOAN TO VALUE – FLIGHTPATH 40% 0.4% 35% 0.9% 3.2% 30% 28.0% 27.2% (3.7%) 25% 20% 15% 10% 5% 0% LTV Flexi Store Dividend Capital Proposed Forecast LTV September 2019 Acquisition payment – incurred on capital raise December 20191 properties2 (R250m) 27.3% +3.2% R250m LTV increase from the recent Propo
Slide 21: Disclaimer and Confidentiality
DISCLAIMER AND CONFIDENTIALITY This document does not constitute or form part of any formal proposal or offer or solicitation to sell, or offer for sale or investment, or for the issue or sale of securities. This document does not (and nor does any part of it) constitute any contract, commitment or
Stor-Age Property REIT — Investor Presentation (May 2020) on 6ix