Resilient Reit Limited · JSE:RES
Resilient Reit — FY2022 Earnings Presentation
30 slides from Resilient Reit's earnings presentation, March 2023
Slide 1: Financial Results Presentation
FINANCIAL RESULTS PRESENTATION for the year ended 31 December 2022
Slide 2: Strategy
STRATEGY • Own dominant retail centres • Aggressively address the structural changes in retail properties • Have significant influence over investee companies • Maintain conservative risk management • Achieve the highest environmental standards 2
Slide 3: Highveld Mall
“Highveld Mall
Slide 4: Highlights
HIGHLIGHTS • Comparable dividend +3,8% (excluding LTE unbundling) for the year • Acquired 3,96% (now 4,01%) interest in Hammerson – No distribution from Hammerson for 2H2022 • Comparable sales growth +9,4%, down from 9,9% at interim (+16,1% against FY2019) • SA net property income growth +6,0%, posi
Slide 5: Jubilee Mall
Jubilee Mall
Slide 6: Investment Portfolio
INVESTMENT PORTFOLIO Direct property 86,3% SA 76,2% France 8,0% Nigeria 2,1% Listed property offshore 13,7% Lighthouse 10,8% Hammerson 2,9% 6
Slide 7: Listed Portfolio
LISTED PORTFOLIO Dec 2022 Jun 2022 Number of Fair value Number of Fair value Counter shares R’000 shares R’000 NEPI Rockcastle (NRP) – – 10 542 668 918 161 Lighthouse Properties (LTE) 523 610 673 3 560 553 502 145 799 3 414 591 Hammerson (HMSO/HMN) 197 927 768 971 682 – – 4 532 235 4 332 752 • Dispo
Slide 8: Comparable Sales Growth per Province
COMPARABLE SALES GROWTH PER PROVINCE Year ended Dec 2022 Dec 2022 SA properties vs Dec 2019 vs Dec 2021 by value Province % % % Northern Cape 17,3 5,7 6,0 North West 4,5 5,8 5,8 Limpopo 18,8 6,7 29,5 Mpumalanga 8,7 8,9 13,8 KwaZulu-Natal 27,3 11,4 17,1 Gauteng 10,5 12,3 24,2 Eastern Cape 28,4 19,2 3
Slide 9: Structural Changes in Retail
STRUCTURAL CHANGES IN RETAIL • Increased percentage spend on groceries and certain fashion categories • Ongoing right-sizing of Edgars and Game • Short term dilutionary but rebalances and strengthens the malls ensuring long-term growth 9 Boardwalk Inkwazi
Slide 10: The Grove Mall
The Grove Mall
Slide 11: Mams Mall
Mams Mall
Slide 12: Mams Mall
Mams Mall
Slide 13: Highveld Mall
Highveld Mall
Slide 14: Highveld Mall
Highveld Mall
Slide 15: Highveld Mall
/ High veld Mall
Slide 16: Boardwalk Inkwazi
Boardwalk Inkwazi
Slide 17: Limpopo Mall
Limpopo Mall
Slide 18: Boardwalk Inkwazi
RAL i> SS cut! " — oe Se Boardwalk Inkwazi
Slide 19: National Tenant Groups
19 % 10 12 % 0 2 4 6 8 TFG Mr Price Group Pepkor Shoprite Checkers Massmart Pick n Pay Truworths Retailability Group NATIONAL TENANT GROUPS Woolworths Clicks Group as a percentage of contractual rental revenue as at 31 December 2022 Famous Brands Spur Corporation Absa Dis-Chem FirstRand Group Standa
Slide 20: France
FRANCE • 40% ownership • Impact of COVID restrictions • Performance of new tenants • Vacancies and tenant demand • Net operating income growth of between 15% – 20% for FY2024 and FY2025 20 Docks 76
Slide 21: Energy Projects
ENERGY PROJECTS Boardwalk Inkwazi • Solar production % of consumption: – December 2022 – 14,6% – April 2023 – 19% (projected) – December 2023 – 25% (projected) • Ahead of target of producing 50% of electricity consumption by 2027 • Two battery systems installed at The Grove Mall and Irene Village Ma
Slide 22: Summary of Financial Performance
SUMMARY OF FINANCIAL PERFORMANCE Dec 2022 Jun 2022 Dec 2021 Jun 2021 Dividend (cents per share) 203,98 234,05 226,62 226,11 Shares in issue for IFRS 340 575 147 347 037 531 360 970 213 360 970 213 Shares held in treasury: Resilient Properties 30 156 041 30 156 041 39 156 041 39 156 041 Shares in iss
Slide 23: Funding and Facilities
FUNDING AND FACILITIES • Unencumbered assets – listed R4,5bn – physical R5,4bn Current profile • Undrawn facilities of R1,7bn • Average cost of funding of 8,34% • Average interest rate hedge term of 3,7 years DMTN R3 509m LibFin R1 160m Nedbank R1 048m RMB R3 640m Standard Bank R3 008m Nigerian fund
Slide 24: Facility Expiries
FACILITY EXPIRIES R’million 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 0 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 DMTN Nedbank LibFin Nigerian funding RMB French funding* Standard Bank * This includes the two year extension option from 2025 to 2027. 24
Slide 25: Challenges
CHALLENGES • Impact of economic and retail structural changes • Cost and reliability of electricity supply • Decline of local authorities and state-managed infrastructure • Impact of loadshedding 25 Highveld Mall
Slide 26: Outlook and Opportunities
OUTLOOK AND OPPORTUNITIES • Property portfolio well located and structured for growth • Lighthouse • Hammerson 26 Boardwalk Inkwazi
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Slide 30: Mams Mall
Mams Mall