Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — FY2021 Earnings Presentation
122 slides from Emira Property Fund's earnings presentation, June 2021
Slide 1: Emira Property Fund
EMIRA 1Or the Vear-enel
Slide 2: Overview, Financials, Portfolio, Investments, Outlook
Emira Property Fund — Overview › Our story › Metrics — Financials › Distribution statement › Balance sheet — Portfolio › Direct — Investments › Recycling › Transcend › Enyuka › US — Outlook
Slide 3: Geoff Jennett, CEO
Emira Property Fund Geoff Jennett CEO
Slide 4: Our story
Emira Property Fund 3 OVERVIEW Year-end Results 2021 Our story Challenging 2021 Unrest — July 2021 Solid base Purpose in perspective — COVID-19 2nd — Limited impact — Solid operational result — Doing the basics well and 3rd waves › Springfield 1/77 – Food Lovers Market — Stable team — Being great in
Slide 5: Key metrics
Emira Property Fund 4 OVERVIEW Year-end Results 2021 Key metrics Distributable Acquisitions Vacancies LTV income per share 6.4% 40.9% 124.19c +USD12.5m (Newport) (128.36c) -3.2% Tenant retention ICR KPI 119.76c (+3.7%) 82% (gross rental) 2.9x NAV Disposals 1 518c (1 530c) R34.5m (Steiner) Dividend p
Slide 6: Greg Booyens, CFO
Emira Property Fund Greg Booyens CFO
Slide 7: Distribution statement
Emira Property Fund 6 FINANCIALS Year-end Results 2021 Distribution statement JUN 20 JUN 21 COVID Distributable Cashflow Dividend Variance R’000 Pre-COVID adjustments earnings adjustments payable % Direct portfolio Revenue 1 453 278 1 514 676 (33 605) 1 481 071 49 075 1 530 147 5.3 Property expenses
Slide 8: Dividend per share (cents)
Emira Property Fund 7 FINANCIALS Year-end Results 2021 Dividend per share (cents) 12.6 2.7 (0.2) (1.9) 0.1 (2.1) 3.1 130 11.6 2.3 0.4 2.3 0.1 0.3 1.3 3.1 118.65 110 104.36 6.9 (2.5) (1.9) (1.5) (2.1) (0.1) 90 (0.3) (5.6) 70 50 Enyuka GOZ USA Transcend AUD interest Taxation Core/held properties Covid
Slide 9: Balance sheet
Emira Property Fund 8 FINANCIALS Year-end Results 2021 Balance sheet R’000 JUN 20 JUN 21 % CH Investment properties 10 248 9 782 (4.5) Indirect investments Enyuka 643 657 2.2 Indirect local Transcend 506 439 (13.2) USA Indirect offshore 1 630 1 700 4.3 Loans receivable 415 357 (14.0) Other assets 42
Slide 10: Valuation summary
Emira Property Fund 9 FINANCIALS Year-end Results 2021 Valuation summary Direct property portfolio JUN 2020 JUN 2021 Valuation (Rm)^ 10 207 9 742 Number of properties 79 77 % of the portfolio valued externally 34 31 Valuation rate (R/m²) — Retail 15 780 15 577 — Office 20 067 18 568 — Industrial 5 3
Slide 11: Collections vs billings (net of discounts)
Emira Property Fund 10 FINANCIALS Year-end Results 2021 Collections vs billings (net of discounts) For FY21 NORMAL RENTALS DEFERRED RENTALS Billings (incl. VAT) Collections (incl. VAT) 99% R1.73bn 95% R58.8m
Slide 12: Debt funding mix (Rm)
Emira Property Fund 11 FINANCIALS Year-end Results 2021 Debt funding mix (Rm) 400 350 300 250 200 150 100 50 - Sep 21 Nov 21 Mar 22 Apr 22 Jul 22 Jul 22 Sep 22 Sep 22 Nov 22 Nov 22 Mar 23 May 23 Jun 23 Jun 23 Jun 23 Sep 23 Sep 23 Sep 23 Dec 23 Mar 24 Apr 24 May 24 Jul 24 Jul 24 Nov 24 Apr 25 Jun 25
Slide 13: Interest rate swap profile (Rm)
Emira Property Fund 12 FINANCIALS Year-end Results 2021 Interest rate swap profile (Rm) 1 200 1 000 800 600 400 200 - JUN 2022 DEC 2022 JUN 2023 DEC 2023 JUN 2024 DEC 2024 JUN 2025 DEC 2025 Hedged debt (%) Weighted average duration to expiry (years) Weighted average all in interest rate (%) 80.7 2.1
Slide 14: 0,7% decrease in NAV per share
Emira Property Fund 13 FINANCIALS Year-end Results 2021 Net asset value per share (cents) 1 550 1 530 7 1 518 30 36 67 1 500 1 499 9 81 (6) 21 1 450 8 1 452 (112) 2 (58) 1 400 Jun 20 BEE Scheme Investment Enyuka Transcend USA Foreign Revaluation of Expected Other/IFRS Change in Jun 21 consolidation
Slide 15: Performance: Directly held South African portfolio
Emira Property Fund Directly held South African Performance Ulana van Biljon COO Key portfolio metrics as at 30 June 2021
Slide 16: Operational update
Emira Property Fund 15 PORTFOLIO Year-end Results 2021 Operational update — Continue to focus on the basics and flexible to adapt to the changing environment — Rest of FY21 remain challenging due to the fluid and uncertain working environment — Additional restrictions and unrest — Basics in place, c
Slide 17: Vacancy per sector (%)
Emira Property Fund 16 PORTFOLIO Year-end Results 2021 Vacancy per sector (%) 30% 24.5 25% 17.0 19.1 20% 14.9 15% 10% 5.3 6.9 5.9 6.4 6.0 3.8 3.4 4.1 4.1 3.2 3.9 3.5 3.6 4.1 2.5 5% 2.0 0% OFFICE URBAN RETAIL INDUSTRIAL TOTAL RESIDENTIAL (SAPOA 15.0%) (SAPOA 6.5%) (SAPOA 5.9%) (excl Residential) (The
Slide 18: Office sector
Emira Property Fund 17 PORTFOLIO Year-end Results 2021 Office sector — Businesses remain cautious to make long term decisions – uncertainty and impact of the Pandemic on operations — Working model best for specific company - physical office vs WFH vs a hybrid vs flexible model — Over supply of offic
Slide 19: Key performance metrics
Emira Property Fund 18 PORTFOLIO Year-end Results 2021 Key performance metrics AT 30 JUNE 2021 Tenant retention Rent reversions Escalations WALE 82% by gross rental (80% Jun 20) -14.6% fund (-5.1% Jun 20) 7.1% Fund (7.3% Jun 20) 2.6 years Fund (2.7 years Jun 20) 82% by GLA -13.5% renewals 7.5% Offic
Slide 20: Major lease expiries by gross rental FY21
Emira Property Fund 19 PORTFOLIO Year-end Results 2021 10 Major lease expiries by gross rental FY21 Property Tenant Lease end GLA (m2) Status Menlyn Corporate Park SA Local Government Oct 20 7 025 Renewed – 5 years Menlyn Corporate Park Santam Nov 20 4 657 Tenant vacated 1 Monte Carlo Road Kalideck
Slide 21: ESG
Emira Property Fund 20 PORTFOLIO Year-end Results 2021 ESG — Within the new environment, aligned its reporting with local and international peers, Global Real Estate Sustainability Benchmark (GRESB) structure and UN 17 Sustainability Development Guidelines implemented Environmentally responsible — 2
Slide 22: Major lease expiries by gross rental FY22
Emira Property Fund 21 PORTFOLIO Year-end Results 2021 10 Major lease expiries by gross rental FY22 Property Tenant Lease end GLA (m2) Status Menlyn Corporate Park King Price Insurance Jun 22 10 586 Renewed – 3 years Epping Warehouse (WGA) Devland Burgersfort Dec 21 13 662 Busy with negotiations Tre
Slide 23: Closing
Emira Property Fund 22 PORTFOLIO Year-end Results 2021 Closing Next 12 months will continue to be challenging Continue to focus on retaining our tenants and occupancy levels Being great in the provision of great real estate Adapt to and be flexible in the current challenging and changing working env
Slide 24: Geoff Jennett, CEO
Emira Property Fund Geoff Jennett CEO
Slide 25: Key metrics: Investments
Emira Property Fund 24 INVESTMENTS Year-end Results 2021 Key metrics Recycling Transcend Enyuka United States — Disposal of Steiner — 34.9% stake — Our joint venture in lower — Representing 13.6% R34.5m (BV R29.2m) — Listed value-oriented LSM retail with One Prop of total assets — To dispose residen
Slide 26: Transcend – Residential
Emira Property Fund 25 INVESTMENTS Year-end Results 2021 Transcend – Residential — Mezz loan R93m (R143m) repaid — Portfolio of 22 (vs 23) properties — IHS, excellent team — 4 174 (vs 4 267) units — Board seat — 94.41% occupancy (vs 94.1%) — Recycling at surplus to book values — 96.31% collections —
Slide 27: Enyuka – lower LSM retail
Emira Property Fund 26 INVESTMENTS Year-end Results 2021 Enyuka – lower LSM retail Operational update Unrest update — Vacancy 3.4% (4.6%) — Extensive looting occurred at 6 of the 24 properties — Tenant retention 81% — Of which 1 property partially burnt — Rent reversions -2.3% — SASRIA cover — Escal
Slide 28: US portfolio summary
Emira Property Fund 27 INVESTMENTS Year-end Results 2021 US portfolio summary Properties Vacancies (by GLA) Lease expiry profile Significant Progress 11 Total 7.1% (vs 5.2%) Year 1 4.3% Re-let of grocer at Woodland Portfolio value Year 2 6.6% Square with new operator USD569.5m Tenant retention 49.5%
Slide 29: Newport Pavilion — Cincinnati, Kentucky
Emira Property Fund 28 INVESTMENTS Year-end Results 2021 Newport Pavilion — Cincinnati, Kentucky 16 Jun 21 Purchase price GLA Occupancy Emira investment Equity cash yield USD73.7m 336 907 ft² 97.7% USD12.50m ± USD12.18% Yield Additional upside WALE Equity stake 7.57% 1 pad site to be sold 5.1 years
Slide 30: Geoff Jennett, CEO
Emira Property Fund Geoff Jennett CEO
Slide 31: Outlook
Emira Property Fund 30 OUTLOOK Year-end Results 2021 — Solid operations — Continue to perform — Follow our purpose — Doing basics well — Continual re-assessment of all — Long term diversified path — Diversified investments and assets — Liquid and solvent — No guidance but KPI DIPS 114.65c (FY22) — B
Slide 32: Operations
Emira Property Fund Operations
Slide 33: Number of properties
Emira Property Fund 32 ANNEXURES — OPERATIONS Year-end Results 2021 Number of properties 160 140 135 120 104 100 80 79 77 80 60 40 20 0 JUN 17 JUN 18 JUN 19 JUN 20 JUN 21 NUMBER OF PROPERTIES PER SECTOR — 2020 VS 2021 40 38 37 30 20 20 20 19 20 10 1 1 0 OFFICE URBAN RETAIL INDUSTRIAL RESIDENTIAL JUN
Slide 34: Sectorial spread of direct properties by GLA and value
Emira Property Fund 33 ANNEXURES — OPERATIONS Year-end Results 2021 Sectorial spread of direct properties by GLA and value (%) 2020 GLA SPLIT PER SECTOR 2021 GLA SPLIT PER SECTOR 2020 VALUE SPLIT PER 2021 VALUE SPLIT PER (%) 0.8m m² (%) 0.8m m² SECTOR (%) R10.2bn SECTOR (%) R9.7bn 4 4 4 4 3 3 1 1 3
Slide 35: Geographical spread by no. of buildings: 2020 vs 2021
Emira Property Fund 34 ANNEXURES — OPERATIONS Year-end Results 2021 Geographical spread by no. of buildings: 2020 vs 2021 40 37 35 35 30 25 20 17 17 15 12 12 11 11 10 5 1 1 1 1 0 JOHANNESBURG PRETORIA WESTERN CAPE KWAZULU-NATAL BLOEMFONTEIN MPUMALANGA JUN 20 JUN 21
Slide 36: Geographical spread by value and GLA
Emira Property Fund 35 ANNEXURES — OPERATIONS Year-end Results 2021 Geographical spread by value (%) and GLA (%) GEOGRAPHICAL SPREAD GEOGRAPHICAL SPREAD GEOGRAPHICAL SPREAD GEOGRAPHICAL SPREAD BY VALUE (%) 2020 BY VALUE (%) 2021 BY GLA (%) 2020 BY GLA (%) 2021 56 5 5 5 4 4 4 4 6 6 6 1 1 3 3 3 1 3 1
Slide 37: Average value per m² and property
Emira Property Fund 36 ANNEXURES — OPERATIONS Year-end Results 2021 Average value per m² and property AVERAGE VALUE PER m² R/m² 25 000 20 000 -7.5% -1.3% 15 000 20 067 18 568 -3.8% 15 780 15 577 10 000 -2.6% 12 244 11 783 5 000 5 345 5 206 0 OFFICE URBAN RETAIL INDUSTRIAL TOTAL JUN 20 JUN 21 AVERAGE
Slide 38: Office sector exposure — quality improvement
Emira Property Fund 37 ANNEXURES — OPERATIONS Year-end Results 2021 Office sector exposure — quality improvement NUMBER OF PROPERTIES AVERAGE VALUE PER GRADE OF OFFICE GRADE OF OFFICE PROPERTY (Rm) PORTFOLIO BY VALUE (%) PORTFOLIO BY VALUE (%) 2011 2021 4 3 2 1 1 4 2 1 2 3 2 1 1. 2011 73 1. 2011 52
Slide 39: Changes in Office sector exposure by value
Emira Property Fund 38 ANNEXURES — OPERATIONS Year-end Results 2021 Changes in the Office sector exposure of total direct SA portfolio — by value (%) 35 35 30 30 30 29 25 25 20 20 17 15 15 10 10 5 5 2 0 0 2011 2021 2011 2021 B-GRADE % A- AND P-GRADE %
Slide 40: Vacancy profile per sector and grade — by GLA
Emira Property Fund 39 ANNEXURES — OPERATIONS Year-end Results 2021 Vacancy profile per sector and grade — by GLA (%) 30% 26.3 25.3 25% 20% 18.2 15.8 16.4 15% 13.4 11.4 12.0 10% 8.5 6.3 5.9 6.4 5% 3.8 4.1 4.1 3.9 3.5 3.6 4.1 3.4 3.2 2.3 2.7 2.0 0% OFFICE P OFFICE A OFFICE B URBAN RETAIL INDUSTRIAL T
Slide 41: Vacancy loss by gross rental
Emira Property Fund 40 ANNEXURES — OPERATIONS Year-end Results 2021 Vacancy loss by gross rental (%) 14% 13.1 12.8 12% 10% 8% 6.4 6.1 6% 5.4 4.3 4.1 4.1 4% 3.7 3.6 3.3 3.2 3.2 2.9 3.0 2.1 2% 0% OFFICE URBAN RETAIL INDUSTRIAL TOTAL JUN 19 JUN 20 DEC 20 JUN 21
Slide 42: Vacancy loss by sector and grade
Emira Property Fund 41 ANNEXURES — OPERATIONS Year-end Results 2021 Vacancy loss by sector and grade — by gross rental (%) 30% 25% 23.9 22.2 20% 15% 13.9 12.1 12.3 11.5 10% 6.1 6.4 4.8 5% 3.8 3.7 4.1 3.6 4.1 3.3 3.2 3.2 2.9 3.0 2.1 0% PRIME + OFFICE A OFFICE B URBAN RETAIL INDUSTRIAL TOTAL JUN 19 JU
Slide 43: Tenant retention
Emira Property Fund 42 ANNEXURES — OPERATIONS Year-end Results 2021 Tenant retention (%) 100% Hundreds 82 83 82 80 80 81 81 80% 78 78 72 70 70 60% 40% GROSS RENTALS m² NO. OF LEASES JUN 19 JUN 20 DEC 20 JUN 21 FY21: Expiries of 220 859m2 equals 506 leases or R30.6m gross rentals per month
Slide 44: Major lease expiries by GLA FY21
Emira Property Fund 43 ANNEXURES — OPERATIONS Year-end Results 2021 10 Major lease expiries by GLA FY21 Property Tenant Lease end GLA (m2) Status Menlyn Corporate Park SA Local Government Oct 20 7 025 Renewed – 5 years Mitek Mitek Industries Jan 21 6 604 Renewed – 2 years Cambridge Park ITEC Sep 20
Slide 45: Major lease expiries by GLA FY22
Emira Property Fund 44 ANNEXURES — OPERATIONS Year-end Results 2021 10 Major lease expiries by GLA FY22 Property Tenant Lease end GLA (m2) Status Epping Warehouse (WGA) Devland Burgersfort Dec 21 13 662 Busy with negotiations Menlyn Corporate Park King Price Insurance Jun 22 10 586 Renewed – 3 years
Slide 46: Reversions total (gross rentals)
Emira Property Fund 45 ANNEXURES — OPERATIONS Year-end Results 2021 Reversions total (gross rentals) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL DECREASE % Office 32 220 178.68 143.38 -19.8 Urban retail 73 007 174.54 152.53 -12.6 Industrial 90 498 72.61 62.27 -14.2 Total Jun 21 19
Slide 47: Reversions renewals (gross rentals)
Emira Property Fund 46 ANNEXURES — OPERATIONS Year-end Results 2021 Reversions renewals (gross rentals) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL DECREASE % Office 29 426 178.40 142.80 -20.0 Urban retail 58 851 173.19 156.47 -9.7 Industrial 76 177 73.01 62.24 -14.7 Total Jun 21
Slide 48: Reversions new leases (gross rentals)
Emira Property Fund 47 ANNEXURES — OPERATIONS Year-end Results 2021 Reversions new leases (gross rentals) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL DECREASE % Office 2 794 181.69 149.42 -17.8 Urban retail 14 157 180.15 136.16 -24.4 Industrial 14 321 70.45 62.41 -11.4 Total Jun 2
Slide 49: Escalations (%)
Emira Property Fund 48 ANNEXURES — OPERATIONS Year-end Results 2021 Escalations (%) 9% 8% 7.9 7.7 7.5 7.5 7.5 7.5 7.2 7.3 7.3 7.3 7.2 7.0 7.0 7.1 7% 6.9 6.7 6% 5% 4% 3% OFFICE URBAN RETAIL INDUSTRIAL TOTAL JUN 19 JUN 20 DEC 20 JUN 21
Slide 50: Weighted average lease expiry (WALE)
Emira Property Fund 49 ANNEXURES — OPERATIONS Year-end Results 2021 Weighted average lease expiry (WALE) (years) 4.5 4.0 3.9 3.5 3.5 3.3 3.2 3.0 3.0 2.7 2.6 2.6 2.6 2.5 2.5 2.4 2.3 2.3 2.2 2.1 2.0 2.0 1.5 1.0 0.5 0.0 OFFICE URBAN RETAIL INDUSTRIAL TOTAL JUN 2019 JUN 2020 DEC 2020 JUN 2021
Slide 51: Lease expiry profile by gross rental
Emira Property Fund 50 ANNEXURES — OPERATIONS Year-end Results 2021 Lease expiry profile by gross rental (%) 40% 37.1 36.6 35% 30% 29.2 26.8 26.2 24.3 25% 22.0 20.0 19.5 20% 18.6 16.7 14.8 15% 10% 5% 2.9 2.3 0.6 0.9 1.3 0.2 0% VACATED EXPIRIES ROLLED OVER YEAR 1 YEAR 2 YEAR 3 YEAR 4+ (30/06/21) (FY2
Slide 52: Lease expiry profile — offices
Emira Property Fund 51 ANNEXURES — OPERATIONS Year-end Results 2021 Lease expiry profile — offices by gross rental (%) 40% 35% 33.7 29.8 29.8 29.8 30% 27.8 27.6 25% 21.6 21.5 20.8 20.0 20% 16.3 15.5 15% 10% 5% 2.5 1.6 0.5 0.8 0.1 0.3 0% VACATED EXPIRIES ROLLED OVER YEAR 1 YEAR 2 YEAR 3 YEAR 4+ (30/0
Slide 53: Lease expiry profile — urban retail
Emira Property Fund 52 ANNEXURES — OPERATIONS Year-end Results 2021 Lease expiry profile — urban retail by gross rental (%) 50% 45.6 44.3 45% 40% 34.5 35% 30% 29.0 25% 21.2 20.2 20% 17.5 16.3 16.7 15.4 15.0 15% 13.7 10% 5% 2.5 3.1 3.3 0.5 1.0 0.2 0% VACATED EXPIRIES ROLLED OVER YEAR 1 YEAR 2 YEAR 3
Slide 54: Lease expiry profile — industrial
Emira Property Fund 53 ANNEXURES — OPERATIONS Year-end Results 2021 Lease expiry profile — industrial by gross rental (%) 35% 30.7 30.2 29.3 29.5 30% 27.3 25.7 25% 23.7 23.3 23.3 20% 19.0 18.9 15% 13.4 10% 5% 2.4 1.0 1.4 0.7 0.2 0.0 0% VACATED EXPIRIES ROLLED OVER YEAR 1 YEAR 2 YEAR 3 YEAR 4+ (30/06
Slide 55: Properties excluded from like-for-like
Emira Property Fund 54 ANNEXURES — OPERATIONS Year-end Results 2021 Properties excluded from like-for-like The following are excluded from FY21 numbers: Purchases — None Land — 1 West land, Quagga land, Knightsbridge land, Portion 180 of the farm Brakfontein (Discovery) Disposals — Steiner Services
Slide 56: Leases concluded: Emira portfolio FY21
Emira Property Fund 55 ANNEXURES — OPERATIONS Year-end Results 2021 Leases concluded: Emira portfolio FY21 NEW RENEWAL TOTAL Number of leases 152 317 469 Total m² 47 163 164 171 211 335 Average lease duration (years) 2.7 2.5 2.6 Average lease escalation (%) 7.3 7.0 7.1 Lease value (Rm) 196 154 648 8
Slide 57: Emira net rentals
Emira Property Fund 56 ANNEXURES — OPERATIONS Year-end Results 2021 Emira net rentals (excl. vacancies, parking, store-rooms, kiosks, ATMs, mezzanines) NO. OF OCCUPIED AVG NET RENTAL SECTOR BUILDINGS GLA (m²) (R/m²) Office: P-Grade 4 55 816 164.28 Office: A-Grade 14 65 525 159.10 Office: B-Grade 2 1
Slide 58: Tenant grading — by GLA
Emira Property Fund 57 ANNEXURES — OPERATIONS Year-end Results 2021 Tenant grading — by GLA (%) TOTAL PORTFOLIO (%) PER SECTOR (%) 80% 76 Hundreds 3 70% 60% 54 50% 47 2 1 40% 28 30 30% 23 20% 18 11 13 10% 1. A Grade 60 0% 2. B Grade 19 OFFICE URBAN RETAIL INDUSTRIAL 3. C Grade 21 A Grade B Grade C G
Slide 59: Tenant grading — by Gross Rental
Emira Property Fund 58 ANNEXURES — OPERATIONS Year-end Results 2021 Tenant grading — by Gross Rental (%) TOTAL PORTFOLIO (%) PER SECTOR (%) 80% 73 Hundreds 3 70% 59 60% 50 2 50% 1 40% 30% 28 25 22 20% 16 15 12 10% 1. A Grade 64 0% 2. B Grade 18 OFFICE URBAN RETAIL INDUSTRIAL 3. C Grade 18 A Grade B
Slide 60: Tenant exposure by GLA
Emira Property Fund 59 ANNEXURES — OPERATIONS Year-end Results 2021 Tenant exposure by GLA TENANT EXPOSURE – TOP TEN TENANTS (%) TOP 10 TENANTS OF THE TOTAL PORTFOLIO (%) RTT GROUP 7.9 PICK N PAY 6.2 MASSMART 3.5 1 SHOPRITE CHECKERS 2.3 PEPKOR 2.1 2 WOOLWORTHS 1.9 DEVLAND 1.8 THE BEVERAGE COMPANY 1.
Slide 61: Tenant exposure by gross rental
Emira Property Fund 60 ANNEXURES — OPERATIONS Year-end Results 2021 Tenant exposure by gross rental TENANT EXPOSURE – TOP TEN TENANTS (%) TOP 10 TENANTS OF THE TOTAL PORTFOLIO (%) MASSMART 5.2 PICK N PAY 4.7 1 RTT GROUP 4.0 PEPKOR 2.8 KING PRICE INSURANCE 2.6 2 SHOPRITE CHECKERS 2.0 THE FOSCHINI GRO
Slide 62: Potential new major capex projects
Emira Property Fund 61 ANNEXURES — OPERATIONS Year-end Results 2021 Potential new major capex projects (not committed) MAJOR PROJECTS BEING CONSIDERED TYPE m² VALUE (Rm) CONSTRUCTION TIME Wonderpark – sustainability (PV extension) Urban Retail N/A 14 3 months Wonderpark – shop reconfiguration Urban
Slide 63: Top properties by value
Emira Property Fund 62 ANNEXURES — OPERATIONS Year-end Results 2021 Top 10 properties by value PROPERTY NODE CLASSIFICATION GLA (m2) MAJOR TENANTS Wonderpark Shopping Centre Pretoria North Retail – Regional Shopping 90 907 Pick n Pay (12 867m²), Game (5 292m²),Checkers (4 709m²), Woolworths (4 642m²
Slide 64: Environmental — reporting
Emira Property Fund 63 ANNEXURES — OPERATIONS Year-end Results 2021 Environmental — reporting EMIRA’S APPROACH TO REPORTING CARBON DISCLOSURE PROJECT SCIENCE BASED TARGETS — An internal business resilience scorecard was developed for — An A- was achieved on its 10th CDP submission report, — SBTi app
Slide 65: Environmental — energy
Emira Property Fund 64 ANNEXURES — OPERATIONS Year-end Results 2021 Environmental — energy BACKUP POWER CLEAN ENERGY PRODUCTION ENERGY MANAGEMENT The breakdown of the coverage of the directly held — 9 PV farms completed that saved 8.6 million kWh — Operational capex of R38.8 million was spent SA por
Slide 66: Environmental — water, waste and biodiversity
Emira Property Fund 65 ANNEXURES — OPERATIONS Year-end Results 2021 Environmental — water, waste and biodiversity WATER WASTE BIODIVERSITY — 21 water projects saving annually 151 845KL equal — Together with the service providers and tenants focus — The second Biodiversity Performance Declaration to
Slide 67: Enyuka
Emira Property Fund 66 ANNEXURES — OPERATIONS Year-end Results 2021 Enyuka Jun 20 Dec 20 Jun 21 Number of properties 24 24 24 GLA of properties 156 298m² 156 279m² 157 123m² Property portfolio value R1.66bn R1.66bn R1.66bn Average value per m² R10 592 R10 609 R10 592 Average value per property R69m
Slide 68: Financials
Emira Property Fund Financials
Slide 69: Year-on-year like-for-like growth net property income
Emira Property Fund 68 ANNEXURES — FINANCIALS Year-end Results 2021 Year-on-year like-for-like growth net property income (Static portfolio — pre COVID-19 adjustments) 10% 8.5% 8% 6% 3.8% 3.1% 4% 2% 0.8% 0% -2% -4% -3.4% -6% -8% -10% -8.1% REVENUE PROPERTY EXPENSES NET PROPERTY INCOME JUN 20 JUN 21
Slide 70: Cost-to-income ratio (before concessions)
Emira Property Fund 69 ANNEXURES — FINANCIALS Year-end Results 2021 Cost-to-income ratio (%) (Before rental concession adjustments) 50% 44.8% 45% 40.0% 40% 36.8% 35% 30% 28.2% 25% 21.3% 20% 15.5% 15% 10% 5% 0% GROSS NET JUN 19 JUN 20 JUN 21 JUN 21 includes Property Management Fees
Slide 71: Cost-to-income ratio (after concessions)
Emira Property Fund 70 ANNEXURES — FINANCIALS Year-end Results 2021 Cost-to-income ratio (%) (After rental concession adjustments) 50% 45.8% 45% 43.3% 40% 36.8% 35% 30% 29.0% 25% 23.6% 20% 15.5% 15% 10% 5% 0% GROSS NET JUN 19 JUN 20 JUN 21
Slide 72: Property expense analysis
Emira Property Fund 71 ANNEXURES — FINANCIALS Year-end Results 2021 Property expense analysis (%) MUNICIPAL CHARGES 63 62 SECURITY EXPENSES 7 7 SERVICE CONTRACTS 6 6 PROPERTY MANAGEMENT FEE 6 5 LEASING EXPENSES 4 5 RENT AND LEVIES PAID 3 4 MAINTENANCE AND REFURBISHMENTS 3 4 BAD DEBTS 5 3 ADMINISTRAT
Slide 73: Reconciliation of cash generated from operations to distributable income
Emira Property Fund 72 ANNEXURES — FINANCIALS Year-end Results 2021 Reconciliation of cash generated from operations to distributable income R’000 Year ended - 30 Jun 2021 Net cash flow from operating activities (as per statement of cash flows) 10 731 Items in cash flow from operating activities, bu
Slide 74: Foreign income: Weighted average hedged rate
Emira Property Fund 73 ANNEXURES — FINANCIALS Year-end Results 2021 Foreign income: Weighted average hedged rate per reporting period Forward rate against ZAR: USD Dec 21 R15.72 Jun 22 R15.85 Dec 22 R16.59 Jun 23 R16.96 Dec 23 R17.70 Jun 24 R17.80 Dec 24 R18.64 Jun 25 R18.89 Dec 25 R16.74
Slide 75: Valuation parameters: segmental
Emira Property Fund 74 ANNEXURES — FINANCIALS Year-end Results 2021 Valuation parameters: segmental JUN 2020 JUN 2021 Direct property portfolio RETAIL OFFICE IND RES TOTAL RETAIL OFFICE IND RES TOTAL Number of properties 20 20 38 1 79 19 20 37 1 77 GLA (m²) 313 698 160 237 342 508 — 816 444 306 736
Slide 76: Debt mix analysis
Emira Property Fund 75 ANNEXURES — FINANCIALS Year-end Results 2021 Debt mix analysis Currency ZAR USD TOTAL Income producing assets (Rm) 11 200 1 700 12 900 Total facilities (Rm) 5 797 — 5 797 Reclassified as foreign debt through CCIRS (Rm) (872) 872 — Adjusted total facilities (Rm) 4 925 872 5 797
Slide 77: Debt funding cost
Emira Property Fund 76 ANNEXURES — FINANCIALS Year-end Results 2021 Debt funding cost JUN 2020 JUN 2021 Average Average Fixed Average Average Fixed all-in rate fixed rate duration all-in rate fixed rate duration % % years % % years ZAR 8.70 7.12 2.8 8.32 6.72 1.8 USD 2.43 2.43 4.5 2.45 2.45 3.6 Tota
Slide 78: Debt covenants: Emira
Emira Property Fund 77 ANNEXURES — FINANCIALS Year-end Results 2021 Debt covenants: Emira Amount drawn Transaction LTV, including (incl accrued Transaction LTV derivatives Corporate LTV covenant Transaction ICR Corporate ICR Value of Amount Amount interest + Lender properties available Drawn derivat
Slide 79: Debt facilities by source (Rm)
Emira Property Fund 78 ANNEXURES — FINANCIALS Year-end Results 2021 Debt facilities by source (Rm) 1 800 28% 1 600 26% 1 400 1 200 1 000 16% 15% 800 600 9% 400 3% 3% 200 - Rand Merchant Bank ABSA Nedbank Standard Bank Sanlam Investec Bank DMTN programme Drawn Undrawn
Slide 80: Loan to value calculation: Emira Group
Emira Property Fund 79 ANNEXURES — FINANCIALS Year-end Results 2021 Loan to value calculation: Emira Group Limit As reported Adjustment* Adjusted* As reported Rm Rm Rm Net interest bearing debt 5 277 5 277 Non-current portion 4 262 4 262 Current portion 721 721 Add back: Unamortised debt raising fee
Slide 81: Loan to value: look through
Emira Property Fund 80 ANNEXURES — FINANCIALS Year-end Results 2021 Loan to value: look through Proportionally consolidate equity accounted investments As reported Enyuka Transcend USA Adjusted Rm Rm Rm Rm Rm Net interest bearing debt 5 277 430 431 2 332 8 470 Non-current portion 4 262 459 421 2 613
Slide 82: Interest cover ratio calculation: Emira Group
Emira Property Fund 81 ANNEXURES — FINANCIALS Year-end Results 2021 Interest cover ratio calculation: Emira Group Measure 1 Measure 2* R'000 R'000 Profit before finance costs 817 161 817 161 Adjustments Exclude: Allowance for future rental escalations 4 748 4 748 Amortisation of lease costs and tena
Slide 83: Segmental loan-to-value and interest cover ratios
Emira Property Fund 82 ANNEXURES — FINANCIALS Year-end Results 2021 Segmental loan-to-value and interest cover ratios Indirect investments (equity accounted) Emira Group USA Enyuka Transcend Accounting treatment n/a Equity accounted Equity accounted Equity accounted Equity held (%) n/a 46.7 – 49.6 4
Slide 84: Cross-currency interest-rate swap exposure
Emira Property Fund 83 ANNEXURES — FINANCIALS Year-end Results 2021 Cross-currency interest-rate swap exposure Weighted Weighted average average Weighted initial interest Interest average Foreign CCIRS vs Nominal Nominal exchange rate USD rate ZAR duration assets Foreign USD'000 R'000 rate (fixed) (
Slide 85: DMTN: Programme terms
Emira Property Fund 84 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Programme terms Issuer Emira Property Fund Limited Short-term unsecured A1 (ZA) (stable outlook — May 2021) National scale ratings Long-term unsecured A (ZA) (negative outlook — May 2021) (Global Credit Rating Co, “GCR”) Long-
Slide 86: DMTN: Treasury guidelines
Emira Property Fund 85 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Treasury guidelines Topic Guidelines Achieved Staggered maturity dates with ideally no more than 1/3 of total interest-bearing debt maturing Maturities within any one financial year and a minimum of 1.5 years weighted average
Slide 87: DMTN: Security arrangements
Emira Property Fund 86 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Security arrangements Counter Indemnity Debt Guarantee Counter Indemnity Agreement Mortgage Bond SPV Guarantee Agreement ISSUER DEBT GUARANTOR TRUSTEE Acting on behalf of Group 1 Noteholders Emira Property Fund Freestone Mortg
Slide 88: DMTN: Secured property portfolio
Emira Property Fund 87 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio (Loan to value) Current position R’000 Value of secured portfolio 1 258 025 Notes in issue Existing – EPF016 130 000 – EPF017 200 000 – EPF019 90 000 – EPF021 70 000 490 000 LTV — actual (%) 39.1 LTV
Slide 89: DMTN: Secured property portfolio
Emira Property Fund 88 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio Offices Industrial — Albury Park — 14-16 Boston Circle — Hamilton House — Denver Warehouse — Lone Creek — Greenfields — HBP Industrial Units Urban retail — Industrial Village Rustivia — Ben Fleur Sho
Slide 90: DMTN: Secured property portfolio
Emira Property Fund 89 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio NUMBER OF PROPERTIES PER SECTOR – 2020 VS 2021 20 18 18 17 16 14 12 11 10 10 8 6 4 4 4 3 3 2 0 OFFICE URBAN RETAIL INDUSTRIAL TOTAL JUN 20 JUN 21
Slide 91: DMTN: Secured property portfolio
Emira Property Fund 90 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio JUN 2020 GLA SPLIT PER JUN 2021 GLA SPLIT PER JUN 2020 VALUE SPLIT PER JUN 2021 VALUE SPLIT PER SECTOR (%) SECTOR (%) SECTOR (%) R1.26BN SECTOR (%) R1.26BN 1 1 3 3 1 1 3 3 2 2 2 2 1. Urban Retail 30
Slide 92: DMTN: Secured property portfolio
Emira Property Fund 91 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio JUN 2020 GEOGRAPHICAL JUN 2021 GEOGRAPHICAL JUN 2020 GEOGRAPHICAL JUN 2021 GEOGRAPHICAL SPREAD BY GLA (%) SPREAD BY GLA (%) SPREAD BY VALUE (%) SPREAD BY VALUE (%) 5 5 5 5 4 1 4 1 1 1 4 4 3 3 3 2 2 2
Slide 93: DMTN: Secured property portfolio
Emira Property Fund 92 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio AVERAGE VALUE PER m² (R) 15 000 13 949 12 069 12 278 11 454 10 000 8 025 7 408 4 731 4 813 5 000 0 OFFICE URBAN RETAIL INDUSTRIAL TOTAL JUN 20 JUN 21 AVERAGE VALUE PER PROPERTY (Rm) 200 +7% 148 137 1
Slide 94: DMTN: Secured property portfolio
Emira Property Fund 93 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio * Albury Park (Aegis Media 1 935m² — 30/09/2020 — consolidation of business VACANCY PROFILE BY GLA (%) ^ The Colony Shopping Centre (JDI Research, 403m² — 31/01/2021) # 1 Medical Road (Johnson & John
Slide 95: DMTN: Secured property portfolio
Emira Property Fund 94 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio LEASE EXPIRY PROFILE BY GROSS RENTAL (%) 35% 31.5 29.7 30% 27.1 25.7 25% 21.3 21.8 19.4 20% 16.9 15% 10% 5% 2.6 1.3 2.2 0.5 0% Vacated Expiries rolled over Year 1 (FY22) Year 2 (FY23) Year 3 (FY24) Y
Slide 96: Major lease expiries by gross rental: FY21
Emira Property Fund 95 ANNEXURES — FINANCIALS Year-end Results 2021 5 Major lease expiries by gross rental: FY21 Property Tenant Lease end GLA (m²) Status Albury Park Aegis Media Sep 20 1 696 Tenant vacated Hamilton House Switchless Dec 20 1 567 Renewed — 2 years Tenant Vacated 1 Medical Road Johnso
Slide 97: Major lease expiries by gross rental: FY22
Emira Property Fund 96 ANNEXURES — FINANCIALS Year-end Results 2021 5 Major lease expiries by gross rental: FY22 Property Tenant Lease end GLA (m²) Status Trellidor Trellidor Innovations Sep 21 7 672 Finalising lease terms — 5 years 14 – 16 Boston Circle Bidvest data Jun 22 7 533 Expecting to renew
Slide 98: DMTN: Secured property portfolio
Emira Property Fund 97 ANNEXURES — FINANCIALS Year-end Results 2021 DMTN: Secured property portfolio (Top tenants per property by gross rental) 1 Medical Road iMvula Healthcare Logistics 14-16 Boston Circle Bidvest Data 20 Anvil Road The Beverage Company Albury Park Network Space, Faurie Nell Inc.,
Slide 99: US offshore
Emira Property Fund US offshore
Slide 100: US thesis — recap
Emira Property Fund 99 ANNEXURES — US OFFSHORE Year-end Results 2021 US thesis — recap — First world economy — Undervalued subsector, focusing on open-air Power centres with grocer component and value offering — Diversified, credit-quality tenant base — Asset by asset approach, with co-investment pa
Slide 101: US co-investment strategy
Emira Property Fund 100 ANNEXURES — US OFFSHORE Year-end Results 2021 US co-investment strategy — Dallas, Texas based — Over USD2.5 billion in commercial real — 22 professional staff estate investments closed — Over 100 years collective experience — Unanimous decision making between Emira and Rainie
Slide 102: US geographical exposure
Emira Property Fund 101 ANNEXURES — US OFFSHORE Year-end Results 2021 US geographical exposure Ohio Indiana Missouri Kentucky Oklahoma Georgia Dallas Key Texas States with owned assets Owned asset location Florida Rainier HQ Latest acquisition – Newport Pavilion
Slide 103: The US economic environment
Emira Property Fund 102 ANNEXURES — US OFFSHORE Year-end Results 2021 The US economic environment 15% 10% 5% 0% -5% -10% -15% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Sources: US Bureau of Labor Statistics. US REAL GDP GROWTH Y-O-Y % US Unemployment Rate % US Bureau of Economic Analysi
Slide 104: The US economic environment
Emira Property Fund 103 ANNEXURES — US OFFSHORE Year-end Results 2021 The US economic environment The US economic environment – emerging from pandemic, but not out Impact on portfolio of the woods — Initial reaction was strict cash flow and liquidity management, followed — GDP shows a v-shaped econo
Slide 105: US portfolio
Emira Property Fund 104 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio Woodlands Square (Florida) Moore Plaza (Texas) San Antonio Crossing (Texas) University Town Center (Oklahoma) Belden Park Crossings (Ohio) 32 East (Ohio)
Slide 106: US portfolio
Emira Property Fund 105 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio Wheatland Towne Crossing (Texas) Truman’s Marketplace (Missouri) Stony Creek Marketplace (Indiana) Dawsons Marketplace (Georgia)
Slide 107: Newport Pavilion — Cincinnati, Kentucky
Emira Property Fund 106 ANNEXURES — US OFFSHORE Year-end Results 2021 Newport Pavilion — Cincinnati, Kentucky 16 Jun 21 Purchase price GLA Occupancy Emira investment Equity cash yield USD73.7m 336 907 ft² 97.7% USD12.50m ± USD12.18% Yield Additional upside WALE Equity stake 7.57% 1 pad site to be so
Slide 108: US portfolio
Emira Property Fund 107 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio Belden Park Moore Stony Creek Woodlands Truman’s Property Crossing 32 East Plaza Marketplace Square Marketplace ACQUISITION DATE 17 Oct 17 19 Jan 18 18 Jan 18 28 Mar 18 26 Oct 18 21 Dec 18 PURCHASE PRICE (USD) 67 000
Slide 109: US portfolio
Emira Property Fund 108 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio San Antonio Wheatland University Dawson Newport Property Crossing Towne Center Town Center Marketplace Pavilion Total ACQUISITION DATE 27 Feb 19 29 Mar 19 24 Jun 19 03 Feb 20 16 Jun 21 PURCHASE PRICE (USD) 20 480 000
Slide 110: US portfolio
Emira Property Fund 109 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio Belden Park Moore Stony Creek Woodlands Truman’s Property Crossing 32 East Plaza Marketplace Square Marketplace LOCATION North Canton, Ohio Cincinnati, Ohio Corpus Christi, Texas Noblesville, Indiana Tampa, Florida Gr
Slide 111: US portfolio
Emira Property Fund 110 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio San Antonio Wheatland University Dawson Newport Property Crossing Towne Center Town Center Marketplace Pavilion Total LOCATION San Antonio, Dallas, Texas Norman, Oklahoma Dawsonville, Atlanta Newport, Kentucky Texas G
Slide 112: Valuation parameters: US portfolio
Emira Property Fund 111 ANNEXURES — US OFFSHORE Year-end Results 2021 Valuation parameters: US portfolio Direct property portfolio JUN 2020 JUN 2021 Number of properties 10 11 GLA (ft²) 2 941 151 3 328 670 Valuation (USDm) 493.1 569.5 Average value per property (USDm) 49.31 51.78 Valuation rate (USD
Slide 113: US portfolio — leasing
Emira Property Fund 112 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio — leasing Area Ave expiry rental Ave new lease rental Ave duration Increase/decrease No. (ft²) (USD PSF P.A) (USD PSF P.A) (years) (%) REVERSIONS Renewals 41 260 237* 15.49 15.72 3.38 1.47 New leases (with reversions)
Slide 114: US portfolio — Lease expiry profile by GLA and rental
Emira Property Fund 113 ANNEXURES — US OFFSHORE Year-end Results 2021 US portfolio — Lease expiry profile by GLA and rental (%) 7000% 61.6 59.8 6000% 5000% 4000% 3000% 2000% 18.6 16.3 1000% 7.1 8.6 5.5 6.6 6.9 4.1 4.2 0.0 0.3 0.6 0% VACANCY EXPIRIES ROLLED OVER YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 (30
Slide 115: US tenant exposure by GLA
Emira Property Fund 114 ANNEXURES — US OFFSHORE Year-end Results 2021 US tenant exposure by GLA TOP 10 TENANTS OF THE TOTAL PORTFOLIO (%) TJX Companies 9.1 Burlington 5.6 Kohl's 5.4 1 Hobby Lobby and Mardell 5.1 2 Academy Sports 4.3 Kroger 4.1 Bealls 3.5 PetSmart 3.2 1. Top 10 tenants 45 2. Other te
Slide 116: US tenant exposure by base rental
Emira Property Fund 115 ANNEXURES — US OFFSHORE Year-end Results 2021 US tenant exposure by base rental TOP 10 TENANTS OF THE TOTAL PORTFOLIO (%) TJX Companies 6.3 AMC Theatres 4.2 Burlington 3.5 1 PetSmart 3.4 ULTA Beauty 3.2 2 Hobby Lobby and Mardell 3.0 Academy Sports 2.7 Kohl's 2.5 1. Top 10 ten
Slide 117: 10 major lease expiries by rental: FY21
Emira Property Fund 116 ANNEXURES — US OFFSHORE Year-end Results 2021 10 major lease expiries by rental: FY21 Property Tenant Lease end GLA (SF) Status Belden Park Crossings Dicks Oct 20 65 120 Tenant vacated Stony Creek Marketplace Best Buy Jan 21 31 004 Renewed — 5 years Belden Park Crossings Arha
Slide 118: Major lease expiries by rental: FY22
Emira Property Fund 117 ANNEXURES — US OFFSHORE Year-end Results 2021 Major lease expiries by rental: FY22 Property Tenant Lease end GLA (SF) Status Belden Park Crossings DSW Shoes Warehouse Jan 22 31 859 Expecting to renew Stony Creek Marketplace Barnes & Noble Jan 22 21 980 Busy with negotiations
Slide 119: Allocation (%) — total assets
Emira Property Fund 118 ANNEXURES Year-end Results 2021 Allocation (%) — total assets JUN 20 JUN 21 US 12.6 12.6% 13.6 13.6% OFFICE 24.8 23.7 URBAN RETAIL 38.3 38.0 INDUSTRIAL 14.2 82.3% 14.2 81.2% RESIDENTIAL 4.8 5.1 LAND 0.2 0.2 RURAL RETAIL (ENYUKA) 5.1 5.1% 5.2 5.2%
Slide 120: Disposals
Emira Property Fund 119 ANNEXURES Year-end Results 2021 Disposals GLA Book value Sale price Exit yield Effective Property Location Sector (m²) (Rm) (Rm) (%) date Steiner Services Johannesburg Industrial 4 804 29.6 34.5 ±7.9 14 Dec 20 Total 4 804 29.6 34.5 ±7.9
Slide 121: Recycling — Northpoint acquisition
Emira Property Fund 120 ANNEXURES Year-end Results 2021 Recycling — Northpoint acquisition Brackenfell, CT — 16 415m² — Multi-tenanted — Conditions precedent remaining: — R103m — Wale 2.0 years — Provision of occupancy certificates before 31 Aug 2021 — R6 275/m² — Yield ±11.5% — Completion of remedi
Slide 122: Forward-looking statements
Emira Property Fund 121 ANNEXURES Year-end Results 2021 Forward-looking statements This results presentation contains certain forward-looking statements relating to the financial performance and position of the Group. All forward-looking statements are solely based on the views and considerations of