Attacq Limited · JSE:ATT
Attacq — H1 FY2014 Earnings Presentation
36 slides from Attacq's earnings presentation, March 2014
Slide 1: Results Presentation for the Six Months Ended 31 December 2013
RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2013
Slide 2: Slide 2
Slide 3: Agenda
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2013 NOTES ATTACQ AT A GLANCE BUSINESS STRATEGY RATIONALE FOR LISTING STRATEGIC EXECUTION HIGHLIGHTS NAV – PERFOMANCE METRIC 5 KEY DIFFERENTIATORS OVERVIEW OF ASSETS AGENDA INVESTMENTS DEVELOPMENTS FINANCIAL REVIEW PROSPECTS Q&A NOTES Reviewed Con
Slide 4: Attacq at a Glance; Business Strategy
ATTACQ AT A GLANCE CAPITAL GROWTH FUND Metric Dec 2013 Jun 2013 % Change Change Total assets R15.10 billion R13.35 billion 13% NAV R7.48 billion R5.37 billion 39% Current gearing 35.7% 41.4% Shares in issue 580 416 250 449 406 150 29.2% NAV per share R12.89 R11.96 7.8% Property portfolio v
Slide 5: Rationale for Listing; Strategic Execution Highlights
RATIONALE FOR LISTING • Strong institutional holding Create a capital • R800 million raised on listing raising platform • R1.5 billion raised post period end • Free float of 60% • Included in SAPY index Provide liquidity • Total valued traded: R1.49 billion to shareholders • Total shares traded: 90.
Slide 6: NAV Performance Metric; 5 Key Differentiators
NAV – PERFORMANCE METRIC Capital Growth Fund Emphasis on net asset value per share (“NAVPS”) as opposed to yield Income is re-invested into development pipeline NAV growth from development profit/revaluation December 2012 to December 2013 NAVPS growth of 19.9% 7 NOTES 5 KEY DIFFERENTIATORS Quality p
Slide 7: Overview of Assets
OVERVIEW OF ASSETS R’000 Dec 2013 Jun 2013 % Change Change Investments¹ South Africa 8 536 888 7 697 762 11% Africa 819 094 679 690 21% International 1 067 603 896 052 19% Total 10 423 585 9 273 504 12% Developments² Under development 2 234 979 1 268 468 76% Infrastructure and vacant land 2
Slide 8: South Africa Investments Overview; Eikestad Mall Precinct
OVERVIEW Total GLA¹ Value¹ Number of Ave property Sector (m²) (Rm) Vacancies¹ properties value¹ (Rm) Retail 195 879 3 975.8 1.68% 6 662.6 Offices/mixed use 119 375 2 626.1 4.66% 6 437.7 Hotel 7 946 162.0 0% 1 162.0 Light Industrial² 35 671 245.6 0% 1 245.6 Total 358 871 7 009.5 2.51% 14 500.7 1. Inf
Slide 9: Garden Route Mall; Mooirivier Mall
RETAIL: GARDEN ROUTE MALL Location George Total GLA 53 362m² Value R1,084 billion Value/GLA R20 323/m² 13 NOTES RETAIL: MOOIRIVIER MALL Location Potchefstroom Total GLA 53 051m² Value R993 million Value/GLA R18 713/m² 14 NOTES Reviewed Condensed Consolidated Financial Results for the six months ende
Slide 10: Brooklyn Mall; Lynnwood Bridge Precinct
RETAIL: BROOKLYN MALL Location Pretoria Total GLA 74 506m² Value R2,5 billion Value/GLA R31 130/m² 15 NOTES MIXED USE: LYNNWOOD BRIDGE PRECINCT Office* Retail Hotel Total Location Pretoria Total GLA 38 504m² 12 550m² 7 946m² 59 000m² Value R1,1 billion R291 million R162 million R1,553 billion Value/
Slide 11: Cell C Campus; Massbuild
OFFICE: CELL C CAMPUS Location Waterfall Total GLA* 44 200m² Value R748 million Value/GLA R16 923/m² Lease term 15 years 17 NOTES LIGHT INDUSTRIAL: MASSBUILD Location Waterfall Total GLA 35 671m² Value R246 million Value/GLA R6 885/m² Lease term 15 years 18 NOTES Reviewed Condensed Consolidated Fina
Slide 12: Africa Strategies
INVESTMENTS AFRICA NOTES AFRICA STRATEGIES Three pronged approach Atterbury Africa • 32.5% effective stake • Focus on retail development opportunities in Africa African Land Investments • 12.4% stake • Focus on the acquisition of completed retail assets • 50% to be held by Atterbury Africa Mauritius
Slide 13: Atterbury Africa; African Land Investments
ATTERBURY AFRICA Atterbury Attributable GLA (m²) Africa’s property value Property Location (proposed*) ownership (USD’000) Status Accra Mall Accra, Ghana 19 000 47% 38 328 Income producing, fully let Under development, expected West Hills Mall Accra, Ghana 27 500 45% 42 087 completion date October 2
Slide 14: Mauritius
MAURITIUS Bagatelle Precinct Strategically located between the capital of Port Louis and the emerging Cyber City growth zone 44 543m² Mall of Mauritius opened in September 2011 Further pipeline of approximately 30 000m² of commercial bulk 23 NOTES INVESTMENTS INTERNATIONAL NOTES 12 ATTACQ I Reviewed
Slide 15: MAS Real Estate Inc.; Nova Eventis
MAS REAL ESTATE INC. MAS MAS shareholding evolution Integral part of Attacq’s diversification strategy: 23.36% 47.24% • Exposure to European markets • Strong management team • Attractive acquisition & development pipeline • Quality operational portfolio • Successful private placement of R2.7bn 2.75%
Slide 16: Developments Overview
DEVELOPMENTS NOTES DEVELOPMENTS OVERVIEW Waterfall land – up to 15 year development pipeline Existing development pipeline Newly secured developments 28 NOTES 14 ATTACQ I Reviewed Condensed Consolidated Financial Results for the six months ended 31 December 2013
Slide 17: Waterfall; Waterfall Development Bulk
WATERFALL Game changer Infill development linking Sandton and Midrand/Pretoria Centralised logistical positioning 323ha with 1.75 million m² of currently approved developable bulk (infrastructure planning for bulk of 2 million m²) Development rolled out over the next 10 to 15 years Excellent access
Slide 18: Existing Pipeline; Office: Group 5
EXISTING PIPELINE* Waterfall¹ Other Total Total Bulk 215 892m² 90 000m² 305 892m² Total capital cost R4.50bn R1.57bn R6.07bn Est value on completion R5.53bn R1.74bn R7.27bn Value as at 31 December 2013 R1.50bn R865m R2.40bn Number of buildings 11 2 13 Number of buildings completed before June 2014 5
Slide 19: Waterfall – Mall of Africa; City Lodge
WATERFALL – MALL OF AFRICA Location Waterfall Total GLA 117 875m² Total capital cost R3.20 billion Estimated completion value R4.05 billion* Expected completion date April 2016 Major tenants National and international retailers Effective shareholding 85.9% * Director’s valuation 33 NOTES WATERFALL –
Slide 20: Waterfall Corner; MBT Building
WATERFALL CORNER Location Waterfall Total GLA 9 126m² Total capital cost R136.5 million Estimated completion value R178.2 million* Expected completion date April 2014 Major tenants Checkers, Clicks, and Woolworths Effective shareholding 85.9% * Director’s valuation 35 NOTES WATERFALL – MBT BUILDING
Slide 21: Newtown Junction; Newly Secured Developments
NEWTOWN JUNCTION Location Newtown Total GLA 75 000m² Total capital cost R1.26 billion Estimated completion value R1.36 billion* Expected completion date October 2014 Major tenants Nedbank, Shoprite, Pick n Pay, Ster-Kinekor, Planet Fitness Effective shareholding 62.5% *Director’s valuation 37 NOTES
Slide 22: Financial Review: Income Statement
FINANCIAL REVIEW NOTES INCOME STATEMENT R’000 Dec 2013 Dec 2012 Change Change % Net rental income 237 730 180 699 57 031 32% Gross rental income 368 696 314 076 54 620 17% Property expenses (130 966) (133 377) 2 411 (2%) Operating profit 85 180 146 241 (61 061) (42%) Fair value adjustments 591 269 3
Slide 23: Fair Value Adjustments; Balance Sheet
FAIR VALUE ADJUSTMENTS R’000 Dec 2013 Dec 2012 Change Change % Total properties 485 638 296 719 188 919 64% Completed 213 275 206 847 6 428 3% Land 15 211 89 294 (74 083) (83%) Property under construction 257 152 578 256 574 nmf Other financial assets 16 092 (26 751) 42 843 (160%) Other investments
Slide 24: Total Assets; Debt Management
TOTAL ASSETS R’000 Dec 2013 June 2013 Change Change % Total properties 11 653 768 10 655 236 998 532 9% Completed buildings 6 601 352 5 419 796 1 181 556 22% Vacant land & infrastructure 2 439 440 2 807 417 (367 977) (13%) Buildings under construction 2 234 979 1 268 468 966 511 76% Held for sale 20
Slide 25: Debt Management; Equity & Issued Shares
DEBT MANAGEMENT Maturity of Debt Debt Providers Assets held for Investec sale 3% 2% 3% 22% Nedbank Within 1 year 26% 47% RMB 10% 1 to 5 years 62% Standard Bank 25% 5 years and longer Sanlam 45 NOTES EQUITY & ISSUED SHARES R’000 Dec 2013 June 2013 Change Change % Total equity 7 637 529 5 728 904 1 90
Slide 26: Issued Shares; NAVPS Performance
ISSUED SHARES Issued shares evolution 599 406 150 12 273 188 1 796 574 580 416 250 574 406 150 11 333 142 55 172 413 549 406 150 524 406 150 50 434 783 499 406 150 474 406 150 449 406 150 449 406 150 Opening Pre-listing Issue AAM ARF minority Other Closing balance rights offer on listing buy-out buy
Slide 27: Prospects
PROSPECTS Risks • Slower economic growth • Increase in interest rates and impact on cap rates • Global macro economic uncertainty Market opportunities • European recovery • Growth potential for markets coming from low base e.g. Eastern Europe and Africa • Market consolidation Key focus areas • Devel
Slide 28: Disclaimer
DISCLAIMER This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to the Company’s business, financial condition and results of operations. These statements, which con
Slide 29: Portfolio Overview
PORTFOLIO OVERVIEW Property and Investment Developments Holdings • Club Retail, Pretoria, GP (40.0%)^: Apr 2014 International (excl Africa) Africa (excl South Africa) South Africa • Lynnwood Bridge – Phase III,Pretoria, GP (100%)$: Oct 2014 • MAS (47.2%)^ • Bagatelle - Mall of Mauritius, Port • Newt
Slide 30: Portfolio Overview: Investments Retail
PORTFOLIO OVERVIEW Investments: Retail Total Effective Property name Location Key tenants GLA Valuation Value holding m² R’000 R/m² % Brooklyn Mall & Brooklyn Square Pretoria Woolworths, Dischem, Zara, Game, Platinum Group 74 506 2 493 975 31 130 25 Glenfair Boulevard Pretoria Checkers, SuperSpar 17
Slide 31: Portfolio Overview: Developments Other
PORTFOLIO OVERVIEW Developments: Other Completion % Pre-let Total capital Value est Est dev profit/ Effective Property name Status date Total GLA (GLA) cost on completion revaluation holding m² % R’000 R’000 R’000 % Newtown and Majestic Development Under construction Nov 2014 75 000 70 1 258 000 1 3
Slide 32: JSE Listing
JSE LISTING Successful Listing on JSE on 14 October 2013 ATT share performance since listing 1900 High: Closing Share price (cps) Private placement price of 1450cps 1850 1850 YE: Year end close: 1780cps 1800 1780 • +23% to private placement price 1750 1700 Closing price high: 1850cps 1650 Closing pr
Slide 33: Notes
NOTES 31 ATTACQ I Reviewed Condensed Consolidated Financial Results for the six months ended 31 December 2013
Slide 34: Notes
NOTES 32 ATTACQ I Reviewed Condensed Consolidated Financial Results for the six months ended 31 December 2013
Slide 35: Notes
NOTES 33 ATTACQ I Reviewed Condensed Consolidated Financial Results for the six months ended 31 December 2013
Slide 36: www.attacq.co.za
Creating investment opportunities. www.dttacq.co .za