Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Corporate Update (March 2024)
22 slides from Vukile Property Fund's corporate update, Mar 26, 2024
Slide 1: Building Communities, Growing Value. FY24 Pre-Close Presentation
BUILDING COMMUNITIES, GROWING VALUE. FY24 Pre-Close Presentation 26 March 2024
Slide 2: Agenda
AGENDA 01 INTRODUCTION Laurence Rapp 02 SOUTH AFRICAN RETAIL PORTFOLIO Itumeleng Mothibeli 03 CASTELLANA PROPERTIES PORTFOLIO Alfonso Brunet 04 CAPITAL ALLOCATION AND GUIDANCE Laurence Rapp 05 QUESTIONS & ANSWERS Laurence Rapp 2
Slide 3: Introduction
01 INTRODUCTION Laurence Rapp 3
Slide 4: Another consistently strong set of results ahead of guidance
01 INTRODUCTION PRE-CLOSE 26 MARCH 2024 ANOTHER CONSISTENTLY STRONG SET OF RESULTS AHEAD OF GUIDANCE ▪ The combination of the defensive nature of the South African portfolio and tenant mix, dominance of our assets and active asset management activities continues to deliver excellent results notwiths
Slide 5: South African Retail Portfolio
02 SOUTH AFRICAN RETAIL PORTFOLIO Itumeleng Mothibeli 5
Slide 6: Retail Portfolio Overview
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 MARCH 2024 RETAIL PORTFOLIO OVERVIEW CONTINUED STRONG OPERATING RESULTS FEB SEP MAR FEB SEP MAR 2024 2023 2023 2024 2023 2023 ▪ The portfolio continues to exhibit steady growth in NOI at 5.4% ▪ Continued traction on strategic leasing initiatives resulti
Slide 7: Retail Category Performance
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 MARCH 2024 RETAIL CATEGORY PERFORMANCE TRADING DENSITIES GREW BY 2.6%* WITH ANNUAL TURNOVER GROWTH OF 2.5% ▪ The portfolio delivered trading density growth of 2.6% ‒ KwaZulu-Natal trade (17% GLA / 23% of rental) significantly impacting Accessories perfo
Slide 8: Retail Portfolio Performance and Trading Environment
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 MARCH 2024 RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT CONTINUED STRONG SPEND PER HEAD ACROSS THE PORTFOLIO Sales Footfall Load shedding % of trading hours 102.5% ▪ Portfolio trading density growth of 2.6%, with growth in four of the 101.1% fiv
Slide 9: Key Tenant Review
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 MARCH 2024 KEY TENANT REVIEW PICK N PAY EXPOSURE ▪ Overall Pick n Pay exposure limited to 6.2% of total rent, with 4.4% (71%) exposed to the lower LSM, budget brands, Pick n Pay QualiSave and Boxer. ▪ Pick n Pay grocer exposure, 1.3% of total rent, limi
Slide 10: Castellana Properties Portfolio
03 CASTELLANA PROPERTIES PORTFOLIO Alfonso Brunet 10
Slide 11: Trading Environment
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 MARCH 2024 TRADING ENVIRONMENT SPAIN'S ECONOMY HAS SHOWN RESILIENCE IN THE FACE OF SIGNIFICANT CHALLENGES, WITH GRADUAL IMPROVEMENTS ACROSS KEY ECONOMIC INDICATORS ▪ After a solid year, with a growth rate of 2.5% in 2023, GDP is expected to keep growing at a more
Slide 12: Footfall and Sales
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 MARCH 2024 FOOTFALL AND SALES SALES AND FOOTFALL ACHIEVE RECORD LEVELS RECOVERY INDEX BASE 2019=100 Remarkable footfall and sales growth surpassing metrics achieved 130% last year, which was already beyond the portfolio record set in 125,8% 126,6% 124,6% 2019. 12
Slide 13: Sales Performance per Tenant Category
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 MARCH 2024 SALES PERFORMANCE PER TENANT CATEGORY EXCEPTIONAL GROWTH IN ALL CATEGORIES, OUTPACING THE RECORD FIGURES ACHIEVED IN FY23 € MILLION 200 3.4% 8.5% 180 160 140 SALES 2023 120 SALES 2022 100 80 60 12.0% 14.2% 40 8.5% 10.5% 5.4% 20 14.2% 19.5% 4.7% 0 HOMEW
Slide 14: Operating Metrics
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 MARCH 2024 OPERATING METRICS HIGHEST OCCUPANCY AND COLLECTION RATES IN THE MARKET KEY KPI’S YTD AT 29 FEBRUARY 2024 162 €8.7 million OCCUPANCY (i) (i) LEASES SIGNED NEW RENT SIGNED 29 FEBRUARY 2024 98.9% (i) 30 SEPTEMBER 2023 99.0% 69 93 €4.1 million €4.6 million
Slide 15: Value-Added Project – Vallsur Repositioning
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 MARCH 2024 VALUE-ADDED PROJECT – VALLSUR REPOSITIONING TRANSFORMATIVE PROJECT EXCEEDING INITIAL EXPECTATIONS, POSITIONING VALLSUR AS AN F&B AND LEISURE REFERENCE IN TOWN ▪ Impressive performance of La Chismería after three months of its opening last December. The
Slide 16: Value-Added Project – El Faro Hipercor
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 MARCH 2024 VALUE-ADDED PROJECT – EL FARO HIPERCOR HIGHLY ACCRETIVE PROJECT REINFORCING ITS REGIONAL DOMINANCE €2.5m ADDITIONAL NOI GENERATED €22.4m CAPEX 11.1% YIELD 17 800m2 START GLA AFFECTED CURRENT APR 2024 MAY/JUNE 2024 Q4 2024 WORKS LICENCE WORKS LICENCE HA
Slide 17: Lar España
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 MARCH 2024 LAR ESPAÑA IN FY23 INVESTMENT DELIVERED C. 15% DIVIDEND YIELD ON OUR AVERAGE IN-PRICE ▪ Lar España has published a good set of results for FY 2023, delivering a total dividend of €66.2million or €0.79 p.s. Castellana is expected to receive a dividend o
Slide 18: Capital Allocation and Guidance
04 CAPITAL ALLOCATION AND GUIDANCE Laurence Rapp 18
Slide 19: Portfolio Acquisitions and Disposals
04 GUIDANCE PRE-CLOSE 26 MARCH 2024 PORTFOLIO ACQUISITIONS AND DISPOSALS PROPOSED ACQUISITION OF BT NGEBS CITY LOCATED IN MTHATHA, EASTERN CAPE ▪ The transaction is unconditional and the notarial lease is in the process of being registered. ▪ Registration of the notarial lease is expected in April 2
Slide 20: Portfolio Acquisitions and Disposals
04 GUIDANCE PRE-CLOSE 26 MARCH 2024 PORTFOLIO ACQUISITIONS AND DISPOSALS CONSISTENLY EXPLORING ACQUISIONS IN LINE WITH OUR GROWTH STRATEGY ▪ Various transactions have been explored locally and in Spain with a number currently in the pipeline and being evaluated although none in full due diligence pr
Slide 21: Guidance
04 GUIDANCE PRE-CLOSE 26 MARCH 2024 GUIDANCE ▪ Balancing a very sluggish local economy with a better than expected environment in Spain but overall both portfolios are performing exceptionally well and delivering great results. We anticipate strong operational performance to continue in the year ahe
Slide 22: Questions and Answers
05 QUESTIONS AND ANSWERS 22