Sa Corporate Real Estate Ltd. · JSE:SAC
Sa Corporate Real Estate — Investor Presentation (June 2023)
16 slides from Sa Corporate Real Estate's investor presentation, Jun 30, 2023
Slide 1: SA Corporate 2023 Pre-Close Update Presentation
SA Corporate 2023 Pre-Close Update Presentation 30 June 2023
Slide 2: Agenda
01 LFL NPI Portfolio Performance AGENDA 02 Retail Portfolio Performance 03 Retail Leasing Update 04 Industrial & Commercial Performance 05 Afhco Portfolio Performance 06 Afhco Residential Leasing Lead Analysis 07 Zambia Portfolio Performance 08 Capital Structure Strategy Update 09 Unlisted Residenti
Slide 3: LFL NPI Portfolio Performance
LFL NPI PORTFOLIO PERFORMANCE Forecast H1’23 vs H1’22 LFL Sector Commentary NPI Growth Strong rental growth from long-term leases at Gauteng based properties (57 Industrial 2.2% Sarel Baard, 112 Yaldwyn, 37 Yaldwyn, and Beryl Street), curtailed by vacancies at Suffert Street, 27 Jet Park and 28 Good
Slide 4: Retail Portfolio Performance
RETAIL PORTFOLIO PERFORMANCE Vacancy Vacancy Anticipated Vacancy Sector Comments 31-Dec-22 31-May-23 30-Jun-23 Letting of vacant and new space in the repurposed section of Morning Glen (1,800m2) to lifestyle & Retail 3.2% 3.8% 3.1% restaurant tenancies and leasing previously vacant space to Bradlows
Slide 5: Retail Leasing Update
RETAIL LEASING UPDATE Strategic Focus Convenience Orientated Retail portfolio 31-Dec-22 30-Jun-23 3.2% 3.1% VACANCY VACANCY LEASING GLA (m2) 4,112 National 92.2% 63.3% tenancy 66.5% NATIONAL Convenience 82.8% NATIONAL TENANCY TENANCY 59.2% 63.1% CONVENIENCE CONVENIENCE 5
Slide 6: Industrial & Commercial Portfolio Performance
INDUSTRIAL & COMMERCIAL PORTFOLIO PERFORMANCE Vacancy Vacancy Anticipated Vacancy Sector Comments 31-Dec-22 31-May-23 30-Jun-23 Remaining 757m2 vacancy relates to office space within Industrial 0.2% 0.2% 0.2% otherwise fully let industrial property in Westmead Decrease in vacancy at GreenPark Corner
Slide 7: Industrial Leasing Update
INDUSTRIAL LEASING UPDATE Strategic Focus Quality Industrial Property Portfolio Lease Renewals Renewal Renewal Expiry 2023 YTD 30 June 2023 2023 Forecast % of % Portfolio % Renewed Reversion Reversion Comments Extent Renewed GLA Negative reversions Total 56,444 14.0% 77.8% 2.9% 19.2% -6.4% anticipat
Slide 8: Afhco Portfolio Performance
AFHCO PORTFOLIO PERFORMANCE Vacancy Vacancy Anticipated Vacancy Sector Comments 31-Dec-22 31-May-23 30-Jun-23 Marginal increase in vacancy attributable to water outages at South Hills and Platinum Place and delays in Residential 2.9% 4.0% 3.1% local authority repairs to Hendrik Potgieter Road servin
Slide 9: Afhco Residential Leasing Lead Analysis
AFHCO RESIDENTIAL LEASING LEAD ANALYSIS Lead Type Percentage Online Listing Platforms 65% Afhco Website 26% Telephone 6% Other 3% • A substantial portion of rental leads are generated via on-line platforms, which has led to increased letting activity • Leads management is to be further enhanced with
Slide 10: Zambia Portfolio Performance
ZAMBIA PORTFOLIO PERFORMANCE Vacancy Vacancy Anticipated Vacancy Sector Comments 31-Dec-22 31-May-23 30-Jun-23 Vacancy reduced due to 977m2 of space that has now been let East Park Mall 2.3% 1.6% 1.6% to a multi-national electronics retailer Vacancy reduced by a total of 1,272m2 as a result of Acaci
Slide 11: Capital Structure Strategy Update
CAPITAL STRUCTURE STRATEGY UPDATE Strategic Focus Financial Sustainability Disposals update 2023 Disposal Pipeline R1.1 billion Previously Contracted R862.8 million Transferred R478.8 million Unconditional R328.6 million Conditional R55.4 million Newly Contracted1 R261.4 million Transferred R2.9 mil
Slide 12: Capital Structure Strategy Update
CAPITAL STRUCTURE STRATEGY UPDATE Strategic Focus Financial Sustainability Debt Refinancing • Offer to refinance R1.2 billion oversubscribed • Indicative pricing: o 3 Year: 3-month JIBAR + 165bps to 175bps o 5 Year: 3-month JIBAR + 185bps to 195bps Increased Hedging • R400 million 3 Year swap to ens
Slide 13: Unlisted Residential Fund Overview
UNLISTED RESIDENTIAL FUND OVERVIEW SA Corporate New Real Estate Investors Investors Appetite Progress Anticipated Afhco commitment Property NewCo Investor 1 R1.0bn+ In Due Diligence 1 Dec-23 Management Asset & (Pty) Ltd Property Management Investor 2 R500m+ In Due Diligence 1 Oct-23 Investor 3 R500m
Slide 14: Indluplace Transaction Update
INDLUPLACE TRANSACTION UPDATE Conditions Precedent • 99.98% support at scheme meeting (5 June 2023) • Unconditional recommendation by Competition Commission to the Tribunal • Targeting commercial effective date 1 July 2023 Financial Effects • Improved operational performance has increased forecast a
Slide 15: Distribution Guidance (including ILU)
DISTRIBUTION GUIDANCE (including ILU) 2023 H1: • Similar to H2’22 • 12% to 14% < H1’22 2023 YE: • 3% to 5% < 2022 YE 2024: • Anticipate strong performance 15
Slide 16: SA CORPORATE ff REAL ESTATE ft —
SA CORPORATE 16 ff REAL ESTATE ft —
SA Corporate Real Estate — Investor Presentation (June 2023) on 6ix