Delta Property Fund Limited · JSE:DLT
Delta Property Fund — FY2024 Earnings Presentation
28 slides from Delta Property Fund's earnings presentation, Jun 3, 2024
Slide 1: Results Presentation for the Year Ended 29 February 2024
RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 3 JUNE 2024 www.deltafund.co.za
Slide 2: Agenda
AGENDA 01 Introduction 02 Operational Overview 03 Financial Results 04 Conclusion 05 Questions & Answers Liberty Towers, Durban
Slide 3: Introduction
88 Field Street, KZN INTRODUCTION www.deltafund.co.za
Slide 4: Introduction
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Introduction 4 INTRODUCTION Delta Property Fund is a unique sovereign focused fund spread nationwide, predominantly in the office sector The portfolio currently comprises 89 properties, which will reduce as we continue with
Slide 5: FY24 Results Highlights
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Introduction 5 FY24 RESULTS HIGHLIGHTS Profit from operations Administrative Expenses SA REIT Cost-to-income WALE 276.6% 11.6% 4.7% 2.1 R399.2 million R96.5 million 49.6% 15.3 months Feb 2023: R226.1 million loss Feb 2023:
Slide 6: Business Update
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Introduction 6 BUSINESS UPDATE OPERATING ENVIRONMENT STAKEHOLDER ENGAGEMENT DELTA PRIORITIES SA Commercial Property Sector is Fruitful engagement with numerous Areas of focus in terms of Delta’s cost still under pressure du
Slide 7: Operational Overview
Phamoko Towers, Polokwane OPERATIONAL OVERVIEW www.deltafund.co.za
Slide 8: Investment Property Overview
Operational overview 8 RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 INVESTMENT PROPERTY OVERVIEW CORE PORTFOLIO NON-CORE PORTFOLIO Investment • 43 Properties •46 Properties in the Core Portfolio Property • R2.3 billion Value of Non-core Properties •R4.4 billion core portfolio value Portf
Slide 9: Disposal of Non-core Properties
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Operational overview 9 Disposal of Non-core Properties Retention of high-quality assets 3 Properties sold during the course of the year • Standard Bank Greyville • Nedbank Building • Enterprise Park 3 Properties sold after
Slide 10: Reduction of Debt & Interest
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Operational overview 10 Reduction of Debt & Interest Finance costs incurred during the year R484.2m (FY23: 457.9m) R183.1 million Reduction of Debt The disposal of Standard Bank Greyville, Nedbank Building and Enterprise Pa
Slide 11: Negotiating Longer Term Leases & Ensuring Renewals
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Operational overview 11 Negotiating Longer Term Leases & Ensuring Renewals 55 Leases Renewed GLA 154 888m2 Average lease term: 3 years 42 leases: Office (151 402m2) 13 leases: Retail (3 486m2) 69 New leases GLA 11 542m2 Ave
Slide 12: Capital Allocation: Repairs and Maintenance
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Operational overview 12 CAPITAL ALLOCATION Allocation of capital for value creation REPAIRS AND MAINTENANCE R28.5 million spend for the year (FY23: 28.3 million) Major Categories of Expenditure R3.9 million R6.8 million Air
Slide 13: Capital Allocation: Capital Expenditure
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Operational overview 13 CAPITAL ALLOCATION CAPITAL EXPENDITURE FOR THE YEAR R47.5 MILLION (FY23: R79.0 MILLION) PROPERTIES WITH THE HIGHEST CAPEX ALLOCATION Building Capital Expenditure during the year Poyntons R10.8 millio
Slide 14: Update on Legal Matters
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Operational overview 14 UPDATE ON LEGAL MATTERS Legal proceedings against former directors ongoing eThekwini Property Fund matter awarded in favour of Delta. We are in the process of recovering the funds held in trust Beaco
Slide 15: Financial Results
Commission House, Gauteng FINANCIAL RESULTS www.deltafund.co.za
Slide 16: Financial Overview
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 16 FINANCIAL OVERVIEW SA REIT LTV WEIGHTED AVERAGE SA REIT NAV per COLLECTIONS COST OF DEBT (WACC) share (Rand) 60.9% 10.0% 3.5 103.1% FY2023: 61.4% FY2023: 8.8% FY2023: 3.6 FY2023: 101.0% COVENANT LTV INT
Slide 17: Consolidated Statement of Comprehensive Income
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 17 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Figures in R’000 FY2024 FY2023 Total Rental income 1 162 617 1 229 121 Straight line rental income accrual (24 866) (12 401) Total Revenue 1 137 751 1 216
Slide 18: SA REIT Funds From Operations
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 18 SA REIT FUNDS FROM OPERATIONS (R’000) Group FY2024 FY2023 Loss per IFRS Statement of Comprehensive Income attributable to parent A (66 482) (728 273) Accounting specific adjustments: Fair value adjustme
Slide 19: SA REIT Funds From Operations (FFO) Bridge
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 19 SA REIT FUNDS FROM OPERATIONS (FFO) BRIDGE Increase Decrease Total 250 000 3 714 2 665 5 059 4 973 12 604 -4 223 - 873 53 623 200 000 -26 348 74 358 150 000 133 557 -71 429 100 000 79 434 50 000 - SA RE
Slide 20: Consolidated Statement of Financial Position
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 20 CONSOLIDATED STATEMENT OF FINANCIAL POSITION R’000 FY2024 Total FY2023 Total ASSETS Non-current assets 5 442 472 6 172 162 Investment property 5 357 988 6 073 071 Investment in listed securities 80 636
Slide 21: Cashflow Allocation and Generation FY2024
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 21 CASHFLOW ALLOCATION AND GENERATION FY2024 SOURCES OF CASHFLOW USES OF CASHFLOW Proceeds from Proceeds fromdisposal of of disposal non- 13 462 Repayment of lease liabilities 5 189 current assets non-curr
Slide 22: Key Debt Management Highlights
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 22 KEY DEBT MANAGEMENT HIGHLIGHTS Debt Renewed Delta repaid debt by Reduction of monthly debt • Nedbank facilities renewed to 7 approximately R183.1m amortisation April 2025, these facilities were • Monthl
Slide 23: Debt Covenants
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 23 DEBT COVENANTS February 2024 February 2023 Investment property and Investment in Debt LTV % ICR LTV % ICR listed securities (R’000) (R’000) Total 6 749 269 4 008 996* 59.4% 1.3 59.9% 1.4 Required limit
Slide 24: Delta Strategy to Cure Covenants
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Financial Results 24 DELTA STRATEGY TO CURE COVENANTS 1. Disposal of non-core properties which will result in an LTV that is within debt covenant 2. Reduction of debt exposure through disposals and ultimately reducing finan
Slide 25: Conclusion
Embassy Building, KwaZulu-Natal CONCLUSION www.deltafund.co.za
Slide 26: Conclusion
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 Conclusion 26 CONCLUSION • Future plans • Strategy – at the core of the strategy is the disposal of LTV properties until covenants are met 45.0% • Part of the strategy is cost containment and improving liquidity • Over the
Slide 27: Questions & Answers
Regents Place, Gauteng QUESTIONS & ANSWERS www.deltafund.co.za
Slide 28: Notes
DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 29 FEBRUARY 2024 NOTES 28 NOTES