Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — FY2017 Earnings Presentation
76 slides from Emira Property Fund's earnings presentation, June 2017
Slide 1: Results for the year ended 30 June 2017
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED 30 JUNE 2017
Slide 2: Agenda
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 1 AGENDA GEOFF JENNETT GREG BOOYENS ULANA VAN BILJON GEOFF JENNETT OVERVIEW FINANCIALS PORTFOLIO PORTFOLIO UPDATE › Key metrics › Distribution › Portfolio › Capex and › 5-year track statement performance disposals record › Balance sheet › Enyu
Slide 3: Overview
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017
Slide 4: Key metrics at June 2017
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 3 KEY METRICS AT JUNE 2017 DISTRIBUTIONS NAV TENANT PER SHARE PER SHARE VACANCIES RETENTION 74.25c 1735c 5.7% 77% CAPEX ACQUISITIONS DISPOSALS PROJECTS LTV Rnil R519m R1.0bn 36.6%
Slide 5: 5-year track record
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 4 5-YEAR TRACK RECORD 2 000 160 1 800 140 1 600 1 751 1 698 1 735 1 735 120 1 400 1 496 1 511 1 470 100 1 200 1 325 1 358 1 386 1 000 80 800 60 600 40 400 200 20 0 0 JUN 13 JUN 14 JUN 15 JUN 16 JUN 17 NAV (LHS) PI PRICE (LHS) DISTRIBUTION (RHS
Slide 6: Financials
FINANCIALS GREG BOOYENS CFO EMIRA PROPERTY FUND
Slide 7: Distribution statement
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 6 DISTRIBUTION STATEMENT R’000 JUN 16 JUN 17 % CH Revenue 1 780 516 1 794 908 0.8 Property expenses (613 027) (667 610) 8.9 Net property expenses to revenue ratio (%) 15.7 15.3 Gross property expenses to revenue ratio (%) 35.3 37.2 Admin expen
Slide 8: Distribution statement continued
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 7 DISTRIBUTION STATEMENT continued R’000 JUN 16 JUN 17 % CH Net operating income b/f 1 078 784 1 053 757 (2.3) Income from listed property investment 58 045 58 516 0.8 Net interest cost (390 915) (393 541) 0.7 Enyuka adjustment – 1 860 >100.0
Slide 9: Balance sheet
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 8 BALANCE SHEET R’000 JUN 16 JUN 17 % CH Investment properties 12 964.9 13 255.6 2.2% Investment in Growthpoint Australia 940.4 901.4 -4.1% Other assets 389.2 575.9 48.0% Total assets 14 294.5 14 732.9 3.1% Interest-bearing debt 4 978.2 5 379.
Slide 10: Net asset value per share
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 9 NET ASSET VALUE PER SHARE 1 800 40 1 735 3 1 735 1 700 (28) (13) (2) 76 74 1 600 1 659 1 661 1 500 1 400 Jun 16 Net change in Revaluation of Revaluation of Other/IFRS Change in Jun 17 shares in issue properties GOZ Distribution Liability NAV
Slide 11: Debt funding mix
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 10 DEBT FUNDING MIX 700 FACILITY CAPITAL BALANCE CAPITAL AVAILABLE 600 500 400 Rm 300 200 100 - JUL AUG SEP SEP NOV NOV NOV FEB MAR MAR MAY MAY MAY AUG AUG SEP MAR MAR JUN SEP SEP SEP NOV JUN SEP MAY 17 17 17 17 17 17 17 18 18 18 18 18 18 18 1
Slide 12: Interest rate swap profile
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 11 INTEREST RATE SWAP PROFILE 900 800 700 600 500 Rm 400 300 200 100 0 DEC 17 JUN 18 DEC 18 JUN 19 DEC 19 JUN 20 DEC 20 JUN 21 DEC 21 JUN 22 DEC 22 JUN 23 JUN 24 DEC 24 Hedged Weighted average Weighted average debt duration to expiry all in in
Slide 13: In summary
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 12 IN SUMMARY
Slide 14: Portfolio
PORTFOLIO ULANA VAN BILJON coo = EMIRA PROPERTY FUND
Slide 15: Property portfolio summary
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 14 PROPERTY PORTFOLIO SUMMARY NUMBER OF PROPERTIES 180 120 161 149 146 145 144 141 134 60 0 JUN 11 JUN 12 JUN 13 JUN 14 JUN 15 JUN 16 JUN 17 NUMBER OF PROPERTIES NUMBER OF PROPERTIES PER SECTOR – 2016 VS 2017 80 61 60 52 45 44 40 23 21 15 17 2
Slide 16: Property portfolio summary: sectoral split
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 15 PROPERTY PORTFOLIO SUMMARY: SECTORAL SPLIT 37 OFFICE 39 44 2016 VALUE SPLIT PER SECTOR (%) URBAN RETAIL 41 2017 VALUE SPLIT PER SECTOR (%) R12.9bn RURAL RETAIL R12.9bn INDUSTRIAL 4 5 15 15 29 28 34 OFFICE 2016 GLA SPLIT 31 2017 GLA SPLIT PE
Slide 17: Property portfolio summary: value per m²
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 16 PROPERTY PORTFOLIO SUMMARY +5% AVERAGE VALUE PER m² 20 000 15 000 14 085 14 835 14 264 15 558 10 903 11 433 R/m2 10 000 7 207 7 778 5 130 5 271 5 000 0 OFFICE URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL JUN 16 JUN 17 AVERAGE VALUE PER PROPER
Slide 18: Office sector exposure
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 17 OFFICE SECTOR EXPOSURE R52m 52 2017 AVERAGE VALUE NUMBER OF PER PROPERTY PROPERTIES 2011 (Rm) 73 R102m 2 25 28 37 P-GRADE GRADE OF OFFICE A-GRADE GRADE OF OFFICE PORTFOLIO (%) B-GRADE PORTFOLIO (%) 2011 C-GRADE 2017 61 47
Slide 19: Vacancy profile by GLA
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 18 VACANCY PROFILE BY GLA 14% 12.5% 12% 10.5% 10% 7.8% 8% 6% 5.3% 5.7% 4.0% 4% 3.2% 2.7% 3.1% 3.3% 3.6% 2.4% 1.4% 1.7% 2% 0.9% 0% OFFICE URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL JUN 15 JUN 16 JUN 17 Office vacancies Corobay Corner Urban reta
Slide 20: Tenant retention
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 19 TENANT RETENTION (%) 78% 76% 74% 76 77 77 76 77 72% 75 74 70% 72 68% 66% 68 64% 62% 60% m² NO. OF LEASES GROSS RENTALS JUN 15 JUN 16 JUN 17 Expiries of 252 702m² comprising 608 leases
Slide 21: Major lease expiries by gross rental: FY17
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 20 10 MAJOR LEASE EXPIRIES BY GROSS RENTAL: FY17 PROPERTY TENANT LEASE END GLA (m²) STATUS 1 Kikuyu Road Eskom Aug 16 7 845 Vacated Parklands Health Care Clicks Oct 16 2 460 Renewed – 5 years RTT Continental RTT Group Dec 16 12 921 Renewed – 1
Slide 22: Lease expiry profile (by GLA)
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 21 LEASE EXPIRY PROFILE (BY GLA) (%) 45% 40% 35.5 34.8 35% 30.5 30% 26.8 25.4 25% 21.2 21.1 20.4 20% 18.7 16.7 15.7 15% 13.7 10% 5.3 5.7 5% 4.0 0.8 0.9 0.3 0.5 1.0 1.2 0% VACANCY VACATED JUN EXPIRIES YEAR 1 YEAR 2 YEAR 3 YEAR 4+ ROLLED OVER JU
Slide 23: Reversion – total (gross rentals)
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 22 REVERSION – TOTAL (GROSS RENTALS) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL (DECREASE) % Office 76 049 117.74 111.89 -5.0 Urban retail 46 349 138.00 139.82 1.3 Rural retail 11 293 97.34 102.68 5.5 Industrial 139 389 48.
Slide 24: Year-on-year like-for-like growth in net income
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 23 YEAR-ON-YEAR LIKE-FOR-LIKE GROWTH IN NET INCOME (static portfolio) (%) 12% 10.6 10% 8.3 8% 6.6 6% 4.4 4% 2.8 2% 0% -2% -0.5 GROSS INCOME EXPENSES NET INCOME JUN 16 JUN 17 * Excluding depreciation saving and lease commission amortisation. GR
Slide 25: Major lease expiries by gross rental: FY18
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 24 10 MAJOR LEASE EXPIRIES BY GROSS RENTAL: FY18 PROPERTY TENANT LEASE END GLA (m²) STATUS Will vacate 2 Sturdee Avenue Sasol Aug 17 5 603 (residential conversion) Will vacate 12 Baker Street Sasol Aug 17 4 636 (residential conversion) Tuinhof
Slide 26: Vacancies by GLA for FY18 – update
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 25 VACANCIES BY GLA FOR FY18 (ANTICIPATED IN FEB 17) – UPDATE PROPERTY EX-TENANT GLA (m²) FROM WHEN UPDATE 2 Sturdee Avenue Sasol 5 603 Aug 17 Resi conversion – started 12 Baker Street Sasol 4 636 Aug 17 Resi conversion – started Waterkloof Ho
Slide 27: In summary
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 26 IN SUMMARY
Slide 28: Portfolio update
PORTFOLIO GEOFF JENNETT CEO EMIRA PROPERTY FUND
Slide 29: Knightsbridge: P-grade, Bryanston
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 28 KNIGHTSBRIDGE: P-GRADE BRYANSTON PROJECT COST COMPLETION GLA 31 584m2 R820m Dec 19 Phase 1 – GLA 12 324m2 R339.2m Sep 17/Oct 17 Phase 2 – GLA 3 564m2 R106.0m Jun 18
Slide 30: Summit Place: P-grade, Menlyn
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 29 SUMMIT PLACE: P-GRADE MENLYN PROJECT COST COMPLETION GLA 14 835m2 R403.5m Sep 17 Building A, C and G1 R127.4m Dec 15/Sep 16 GLA 5 544m2 Building D and E R276.1m Sep 17 GLA 9 784m2
Slide 31: EMIRA PROPERTY FUND
EMIRA PROPERTY FUND
Slide 32: Capex projects in progress
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 31 CAPEX PROJECTS IN PROGRESS SPEND TO DATE (Rm) VALUE (Rm) COMPLETION Knightsbridge – Phase 1 212.2 335.7 Sep/Oct 17 Knightsbridge – Phase 2 44.0 106.9 Jun 18 Summit Place – Block D 71.0 101.7 Sep 17 Summit Place – Block E 179.8 183.2 Sep 17
Slide 33: Enyuka
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 32 ENYUKA › “JV” to grow lower LSM › R575m of rural retail assets › Potential to expand/grow retail assets the portfolio › R50m of assets by One › 50.1% ordinary shares › Unconditional from Jan 17 by One › Earn the yield on assets plus first 6
Slide 34: BEE deal
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 33 BEE DEAL ›30 June 2017 ›50% vendor loan at ›Improved BEE interest = dividend credentials ›5% share issue › “skin in the game” ›Proactive step
Slide 35: Disposals: FY17
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 34 DISPOSALS: FY17 11 buildings R519.7m Forward yield 10.3% Premium +1.1%
Slide 36: Rebalancing
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 35 REBALANCING › R1.1bn held for sale › Unconditional offers for R185m › Conversion to residential
Slide 37: Rosebank residential to rent
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 36 ROSEBANK RESIDENTIAL TO RENT › 280 units, focus on LSM 7-8 › 75% co-ownership › Development spend R121m › Yield >10.5% › JV with Feenstra Group
Slide 38: EMIRA PROPERTY FUND
EMIRA PROPERTY FUND
Slide 39: FY18 outlook
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 38 FY18 OUTLOOK › Responsible rebalancing continues › Groundwork for the future has been laid › Plan to increase offshore exposure › Return to positive growth in DPS
Slide 40: Worley Parsons arbitration update
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 39 UPDATE Worley Parsons arbitration
Slide 41: Broker app
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 40 BROKER APP
Slide 42: Tenant incentives
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 41 TENANT INCENTIVES › Selected buildings only › TI allowances 5/10 months › 3 and 5 year leases › Rent free periods 3/4 months
Slide 43: Intelligent relocation
EMIRA PROPERTY FUND OTHER MATTERS Intelligent relocation
Slide 44: Summary
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 43 SUMMARY › Groundwork has been laid › Positive DPS growth in FY18 › Solid NAV underpin
Slide 45: Thank you
THANK YOU PROPERTY FUND
Slide 46: Annexures
ANNEXURES PROPERTY FUND
Slide 47: Debt covenants
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 46 DEBT COVENANTS TRANSACTION TRANSACTION CORPORATE CORPORATE CORPORATE CORPORATE VALUE OF FACILITY FACILITY LTV LTV LTV LTV ICR ICR PROPERTIES AVAILABLE DRAWN COVENANT ACTUAL COVENANT ACTUAL* COVENANT ACTUAL FACILITY Rm Rm Rm % % % % times ti
Slide 48: Valuation parameters
EMIRA PROPERTY FUND 47 VALUATION PARAMETERS JUN 2016 JUN 2017 Total property assets (Rm) 13 905 14 157 Listed Portfolio GOZ (Rm) 940 901 Direct property portfolio Valuation (Rm)* 12 965 13 256 % of the portfolio valued externally 30.5% 31.2% Average value per property (Rm)** 90 98 Average discount r
Slide 49: Cost-to-income ratio
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 48 COST-TO-INCOME RATIO (%) 40% 35% 37 35 34 30% 25% 20% 15% 16 15 15 10% 5% 0% GROSS NET JUN 15 JUN 16 JUN 17
Slide 50: Property expense analysis
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 49 PROPERTY EXPENSE ANALYSIS (%) 66 n MUNICIPAL CHARGES n 70 8 n SECURITY EXPENSES n 8 7 n SERVICE CONTRACTS n 6 5 n RENT AND LEVIES PAID n 4 3 n BAD DEBTS n 4 5 n LEASING EXPENSES n 3 FY16 4 n MAINTENANCE n 2 FY17 2 n ADMIN EXPENSES n 1 1 n C
Slide 51: Geographic spread by number of buildings
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 50 GEOGRAPHIC SPREAD BY NO. OF BUILDINGS: 2016 vs 2017 60 56 50 50 40 30 31 30 26 22 21 20 20 10 6 6 4 3 1 2 0 JOHANNESBURG PRETORIA WESTERN CAPE KWAZULU-NATAL EASTERN CAPE BLOEMFONTEIN MPUMALANGA 2016 2017
Slide 52: Geographic spread by value
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 51 GEOGRAPHIC SPREAD BY VALUE 131 222 11 JOHANNESBURG 11 30 PRETORIA 29 GEOGRAPHICAL WESTERN CAPE GEOGRAPHICAL 13 SPREAD BY VALUE (%) 13 SPREAD BY VALUE (%) KWAZULU-NATAL 2016 EASTERN CAPE 2017 BLOEMFONTEIN MPUMALANGA 41 41 241 3 31 JOHANNESBU
Slide 53: Office sector exposure
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 52 OFFICE SECTOR EXPOSURE 10 17 B-GRADE % 2017 A- AND P-GRADE % OF TOTAL EMIRA 2011 OF TOTAL EMIRA PORTFOLIO PORTFOLIO 31 30 Quality improvement over six years
Slide 54: Properties excluded from like-for-like
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 53 PROPERTIES EXCLUDED FROM LIKE-FOR-LIKE The following are excluded from FY16 and FY17 numbers: Purchases › Mitchells Plain Town Centre, Ben Fleur Shopping Centre, Summit Place (A, C, D, E1, E2, E3 and G1), Portion 156 of the Farm 356 Zwartko
Slide 55: Like-for-like growth in net income by sector
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 54 YEAR-ON-YEAR LIKE-FOR-LIKE GROWTH IN NET INCOME (static portfolio) (%) 14% 12.0 10% 9.0 8.7 8.3 7.0 6.9 5.1 5.9 6% 4.5 2.5 1.9 2.8 2% -2% -0.5 -1.9 -6% -10% 7.0 OFFICES URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL GROSS INCOME EXPENSES NET IN
Slide 56: Vacancy profile by sector and grade by GLA
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 55 VACANCY PROFILE BY SECTOR AND GRADE BY GLA (%) 16% 15.0 14% 12.8 12.4 12% 10% 9.1 8% 7.7 6.9 6% 5.7 5.3 4.0 4% 3.6 3.2 3.1 3.3 2.7 2.4 2% 1.7 1.4 0.9 0% PRIME + OFFICE A OFFICE B URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL JUN 15 JUN 16 JUN
Slide 57: Value of the vacancy by gross rental
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 56 VALUE OF THE VACANCY BY GROSS RENTAL (%) 12% 11.2 10% 9.3 8% 7.0 6.1 6% 5.3 4.2 4% 3.1 3.1 3.3 2.8 2.5 2.0 2% 1.6 1.2 0.9 0% OFFICE URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL JUN 15 JUN 16 JUN 17
Slide 58: Vacancy by sector by gross rental and grade
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 57 VACANCY BY SECTOR BY GROSS RENTAL AND GRADE (%) 14% 12.2 12.2 12% 10.9 10% 8.2 7.9 8% 6.4 6.1 6% 5.3 4.2 4% 3.1 3.1 3.3 2.8 2.5 2.0 2% 1.6 1.2 0.9 0% PRIME + OFFICE A OFFICE B URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL JUN 15 JUN 16 JUN 17
Slide 59: Reversions renewals (gross rentals)
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 58 REVERSIONS RENEWALS (GROSS RENTALS) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL DECREASE % Office 51 950 107.83 109.43 1.5 Urban retail 37 933 142.50 143.84 1.0 Rural retail 10 228 99.40 105.32 6.0 Industrial 114 220 46.6
Slide 60: Reversions new leases (gross rentals)
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 59 REVERSIONS NEW LEASES (GROSS RENTALS) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL DECREASE % Office 24 099 139.03 117.19 -15.7 Urban retail 8 417 116.83 121.67 4.1 Rural retail 1 065 80.62 77.37 -4.0 Industrial 25 169 54.
Slide 61: Major lease expiries by GLA: FY17
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 60 10 MAJOR LEASE EXPIRIES BY GLA: FY17 PROPERTY TENANT LEASE END GLA (m²) STATUS Epping Warehouse Auction Operation Sep 16 13 662 Renewed – 3 years RTT Continental RTT Group Dec 16 12 921 Renewed – 1 year 1 Kikuyu Road Eskom Aug 16 7 845 Vaca
Slide 62: Major lease expiries by GLA: FY18
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 61 10 MAJOR LEASE EXPIRIES BY GLA: FY18 PROPERTY TENANT LEASE END GLA (m²) STATUS RTT Continental RTT Group Dec 17 12 921 Expecting to renew Cambridge Park Itec Dec 17 5 617 Expecting to renew Will vacate 2 Sturdee Avenue Sasol Aug 17 5 603 (r
Slide 63: Leases concluded: Emira portfolio
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 62 LEASES CONCLUDED: EMIRA PORTFOLIO NEW RENEWAL TOTAL Number of leases 430 419 849 Total m² 128 109 194 439 322 547 Average duration (years) 3.0 2.5 2.7 Leave value (Rm) 436.9 368.5 805.4 * The weighted average duration for the total portfoli
Slide 64: Lease expiry profile – offices
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 63 LEASE EXPIRY PROFILE – OFFICES (BY GLA) (%) 35% 30.3 30% 26.9 25% 23.6 22.6 21.9 20% 18.4 16.4 14.8 15% 12.5 10.5 10% 5% 1.4 0.3 0.5 0.0 0% VACANCY VACATED EXPIRIES YEAR 1 YEAR 2 YEAR 3 YEAR 4+ JUN ROLLED OVER JUN 16 JUN 17
Slide 65: Lease expiry profile – urban retail
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 64 LEASE EXPIRY PROFILE – URBAN RETAIL (BY GLA) (%) 60% 51.5 49.3 50% 40% 30% 20% 16.3 15.9 15.6 15.1 12.8 13.3 10% 2.7 3.1 1.8 1.9 0.2 0.4 0% VACANCY VACATED EXPIRIES YEAR 1 YEAR 2 YEAR 3 YEAR 4+ JUN ROLLED OVER JUN 16 JUN 17
Slide 66: Lease expiry profile – rural retail
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 65 LEASE EXPIRY PROFILE – RURAL RETAIL (BY GLA) (%) 40% 36.3 34.9 35% 30% 25% 22.0 22.3 20% 17.1 15.8 16.0 15% 13.9 10% 8.1 5% 3.3 3.6 3.1 3.6 0.0 0% VACANCY VACATED JUN EXPIRIES ROLLED YEAR 1 YEAR 2 YEAR 3 YEAR 4+ OVER JUN 16 JUN 17
Slide 67: Lease expiry profile – industrial
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 66 LEASE EXPIRY PROFILE – INDUSTRIAL (BY GLA) (%) 35% 32.1 32.5 30.5 30% 26.4 25% 21.7 20% 18.9 17.2 15.4 15% 10% 5% 2.4 1.7 0.5 0.4 0.2 0.0 0% VACANCY VACATED JUN EXPIRIES ROLLED YEAR 1 YEAR 2 YEAR 3 YEAR 4+ OVER JUN 16 JUN 17
Slide 68: Escalations
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 67 ESCALATIONS 9.0% 8.5% 8.4 8.2 8.1 8.0% 7.9 7.8 7.8 7.7 7.7 7.7 7.7 7.6 7.6 7.5 7.5 7.5 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% OFFICE URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL JUN 15 JUN 16 JUN 17
Slide 69: Emira net rentals
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 68 EMIRA NET RENTALS (excl. parking stores and vacancies) NO. OF OCCUPIED AVG. NET SECTOR BUILDINGS GLA (m²) RENTAL (R/m²) Office: P-Grade 4 50 430 171.03 Office: A-Grade 28 159 808 122.89 Office: B-Grade 19 99 175 106.82 Urban retail 21 314 4
Slide 70: Tenant grading by GLA
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 69 TENANT GRADING BY GLA TOTAL PORTFOLIO (%) PER SECTOR (%) 80% 71 20 70% 66 60% 57 51 49 50% 40% A B C 30 29 57 30% 19 25 22 23 20 18 23 20% 12 9 10% 0% OFFICE URBAN RETAIL RURAL RETAIL INDUSTRIAL TOTAL GRADING “A” Large national tenants, lar
Slide 71: Tenant exposure by GLA
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 70 TENANT EXPOSURE BY GLA TOP 10 TENANTS (%) OF THE TOTAL PORTFOLIO TOP 10 TENANTS (%) SPLIT OF THE TOTAL PORTFOLIO 1 1 20 1 5 RTT GROUP 1 PICK N PAY MASSTORES TOP 10 TENANTS 1 PEPKOR SHOPRITE OTHER TENANTS WOOLWORTHS EDCON 2 AUCTION OPERATION
Slide 72: Tenant exposure by gross rental
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 71 TENANT EXPOSURE BY GROSS RENTAL TOP 10 TENANTS IN TOTAL PORTFOLIO (%) TENANT EXPOSURE – TOP 10 TENANTS (%) 1 1 3 20 1 MASSTORES 1 RTT GROUP PICK N PAY TOP 10 TENANTS PEPKOR EDCON 3 OTHER TENANTS 2 SHOPRITE SA LOCAL GOVERNMENT SASOL GROUP MR
Slide 73: Potential new capex projects – not committed
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 72 POTENTIAL NEW CAPEX PROJECTS – NOT COMMITTED MAJOR PROJECTS VALUE CONSTRUCTION BEING CONSIDERED TYPE m² (Rm) TIME 267 West Parking space 3 702 18 000 000 8 months 1 Kikuyu Potential residential – 100% 7 845 175 000 000 22 months Mitchells P
Slide 74: Sustainability planning
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 73 SUSTAINABILITY PLANNING GREEN WATER CLEAN ENERGY CARBON FOOTPRINT BUILDINGS EFFICIENCY PRODUCTION REPORTING › Knightsbridge 4-star › Rainwater harvesting and › 1.2 MWp solar › Scope 1 and 2 emissions GBCSA ratings filtration installation at
Slide 75: Disposals
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 74 DISPOSALS GLA BOOK VALUE PRICE YIELD PROPERTY LOCATION SECTOR (m2) (Rm) (Rm) (%) Southern Life Plaza Bloemfontein Office 10 697 79.5 98.2 12.0 Cochrane Avenue Cape Town Industrial 5 870 23.2 32.0 7.2 Sturdee House Johannesburg Office 1 620
Slide 76: Top ten properties by value
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 75 TOP TEN PROPERTIES BY VALUE PROPERTY NODE CLASSIFICATION GLA (m2) MAJOR TENANTS Wonderpark Pretoria Regional 90 882 Pick n Pay (12 867m²), Game (5 292m²), Woolworths (4 135m²), Checkers Shopping Centre North S/centre (3 981m²), Caltex (3 46