Slide 1: Final Results for Year Ended 30 September 2022
FINAL RESULTS FOR YEAR ENDED 30 SEPTEMBER 2022
Slide 2: Introduction
1 INTRODUCTION
Slide 3: Darren Wilder CEO: Business Overview
DARREN WILDER CEO BUSINESS OVERVIEW
Slide 4: 2023 Creating a Strong Platform for Growth
2023 CREATING A STRONG PLATFORM FOR GROWTH ▪ Recycle out of industrial, office and residential into retail. ▪ To maintain collectable arrears below 2% of gross income ▪ Weighted average growth on lease expiry between 2% to 6% ▪ Target a weighted average lease term remains above 36 months ▪ Determine
Slide 5: Fairvest at a Glance
FAIRVEST AT A GLANCE Diverse portfolio Market Cap 1 150 862 m2 of R12.1bn R5.5bn of GLA (excl. Indluplace) Sectoral split by revenue Retail: 65.6% Office: 23.0% Industrial: 11.4% Investments Gearing levels 61% in Indluplace 5.1% in Dipula 38.1%
Slide 6: Full Year September 2022
FULL YEAR SEPTEMBER 2022 Disposals of 126.22 cps 43.29 cps 100% 7 assets distribution distribution Pay-out ratio transferred at per A share per B share value of R96.5m Direct core Solar investment 87.4% overall portfolio has produced 8.1% of Loan-to-Value tenant remained stable the portfolio’s of 38
Slide 7: Fairvest Portfolio Highlights
FAIRVEST PORTFOLIO HIGHLIGHTS Diverse portfolio of R12.1bn Average value per property R85.8m Sectoral Split by GLA Retail: 48.8% Office: 26.3% Industrial: 24.9% 141 assets 1 150 862m2 Vacancy decreased (excl. Indluplace) of GLA to 5.9% Average gross Weighted average WALE rental per m2 built in escal
Slide 8: Fairvest Strong Letting Activity
FAIRVEST STRONG LETTING ACTIVITY New deals Sep ‘22 Mar ’22 Fairvest Lease expiry profile by GLA Number of leases 404 209 300 000 24.1% Total GLA m2 76 472 35 268 250 000 20.0% 17.3% Average gross rental 200 000 16.5% 103.24 102.82 achieved (R/m2) 11.3% 150 000 Weighted average escalations 6.9% 6.5%
Slide 9: Regional & Sectoral Split
REGIONAL & SECTORAL SPLIT Total GLA per region Total revenue per region 49.6% Gauteng 35.7% 12.9% Western Cape 19.5% 11.3% KwaZulu-Natal 13.6% 7.8% Eastern Cape 9.9% 6.2% Limpopo 5.2% 4.7% North West 6.1% 3.6% Northern Cape 4.6% 3.0% Free State 4.2% 0.9% Mpumalanga 1.2% Total GLA per Sector Total Re
Slide 10: Alon Kirkel COO: Office Portfolio
ALON KIRKEL COO OFFICE PORTFOLIO
Slide 11: Office Portfolio Key Highlights
OFFICE PORTFOLIO KEY HIGHLIGHTS Tenant retention 303 179 m2 38 assets at 85.0% of GLA (31 March – 83.2%) Capex Vacancy decreased % of total portfolio Expenditure (R42.4m) to 13.6% GLA – 26.3% Property value (R2.7b) (31 March – 16.7%) Value – 22.5% 1.6% of Value spend Average gross Weighted average W
Slide 12: Office Leasing Activity
OFFICE LEASING ACTIVITY New deals Sep ‘22 Mar’ 22 Office Lease expiry profile by GLA Number of leases 101 49 80 000 24.4% 70 000 Total GLA m2 17 249 7 745 60 000 16.6% Average gross rental achieved 50 000 13.6% 14.7% 14.9% 81.36 80.53 (R/m2) 40 000 30 000 7.5% 8.3% Weighted average escalations 7.4%
Slide 13: Office Strategic Objectives
OFFICE STRATGIC OBJECTIVES ▪ Reduce vacancy by 1% to 3% ▪ Tenant Retention a key focus area ▪ Contractual lease escalations of 7% driving growth ▪ Execution of special projects Omniplace: Cape Town Suntyger: Tygervalley
Slide 14: Offices Renewals
OFFICES RENEWALS SIGNIFICANT RENEWALS over the past 12 months Company Building GLA m² Government tenant 1 Government building 23 105 Private tenant 1 1 Sturdee 3 298 Private tenant 2 Building 1 3 260 Government tenant 2 127 Bethlehem Street 1 990 Private tenant 3 Crownwood Office Park 1 060 Private
Slide 15: Office New Deals
OFFICE NEW DEALS SIGNIFICANT LEASE NEW DEALS over the past 12 months Company Building GLA m² Private tenant 1 353 Festival Street 1 600 Private tenant 2 The District 855 Private tenant 3 MetalBox 835 Private tenant 4 Bridge On Bond 565 Government tenant 1 Crownwood Office Park 530 Private tenant 5 M
Slide 16: Alon Kirkel COO: Industrial Portfolio
ALON KIRKEL COO INDUSTRIAL PORTFOLIO
Slide 17: Industrial Portfolio Key Highlights
INDUSTRIAL PORTFOLIO KEY HIGHLIGHTS Tenant retention 26 assets 286 584 m2 26 assets at 88.6% of GLA (31 March – 100%) Capex % of total portfolio Vacancy stable at 1.0% Expenditure (R37.2m) GLA – 24.9% (31 March – 1.0%) Property value (R1.3b) Value – 10.4% 3.0% of Value spend Average gross Weighted a
Slide 18: Industrial Leasing Activity
INDUSTRIAL LEASING ACTIVITY New deals Sep ‘22 Mar ‘22 Industrial Lease expiry profile by GLA Number of leases 56 29 31.4% 30.6% 90 000 80 000 Total GLA m2 23 245 10 128 70 000 Average gross rental achieved 60 000 39.53 41.73 50 000 14.7% (R/m2) 12.2% 40 000 Weighted average escalations 7.0% 7.3% 30
Slide 19: Industrial Strategic Objectives
INDUSTRIAL STRATEGIC OBJECTIVES ▪ Maintain vacancy at 1% ▪ Strong growth forecasted ▪ Intensive arrears management ▪ Continue the trend of positive reversion Trevallyn Industrial Park: Kyasands
Slide 20: Riaz Kader COO: Retail Portfolio
RIAZ KADER COO RETAIL PORTFOLIO
Slide 21: Retail at a Glance
RETAIL AT A GLANCE ▪ Strong focus on the defensive retail in under serviced nodes ▪ Continue to improve the defensive nature of the assets & our market share by enhancing the tenant mix ▪ The continued expansion of successful existing tenants ▪ Identified opportunities to extract income from creatin
Slide 22: Retail Portfolio Key Highlights
RETAIL PORTFOLIO KEY HIGHLIGHTS Tenant retention 561 099m2 77 assets at 88.0% of GLA (31 March – 86.4%) Capex Vacancy decreased % of total portfolio Expenditure (R70.1m) to 4.3% GLA – 48.8% Property value (R8.1b) (March – 4.9%) Value – 67.1% 0.9% of Value spend Average gross Weighted average WALE re
Slide 23: Retail Leasing Activity
RETAIL LEASING ACTIVITY New deals Sep ‘22 Mar ’22 Retail Lease expiry profile by GLA Number of leases 247 131 120 000 20.2% 20.1% 19.4% Total GLA m2 35 979 17 394 16.5% 100 000 15.1% Average gross rental achieved 154.89 146.89 80 000 (R/m2) 60 000 Weighted average escalations 6.8% 6.2% 40 000 4.3% 4
Slide 24: Retail Top 10 Tenant Exposure by GLA and Revenue
RETAIL TOP 10 TENANT EXPOSURE BY GLA AND REVENUE 41.7% 8.74% 8.63% 7.87% 3.71% 3.18% 3.03% 1.95% 1.78% 1.44% 1.37% GLA m² 60 009 65 773 49 609 23 790 17 866 12 769 8 507 4 994 7 489 10 297 Monthly revenue
Slide 25: Retail New Deals and Renewals
RETAIL NEW DEALS AND RENEWALS SIGNIFICANT NEW LEASES over the past 12 months 5 186 m² 1 990 m² 1 505 m² 1 130 m² SIGNIFICANT LEASE RENEWALS over the past 12 months 9 138 m² 7 133 m² 3 051 m² 1 897 m² 1 421 m²
Slide 26: Annualised Trading Density
Annualised trading density 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 Building 1 10.87 Building 2 19.24 Building 3 27.80 Building 4 19.88 Building 5 14.87 Building 6 -4.74 Building 7 11.90 Building 8 -17.25 Building 9 42.40 Building 10 -3.39 Building 11 3.84 TRADING DENSITIES Building 1
Slide 27: Retail Strategic Objectives
RETAIL STRATEGIC OBJECTIVES ▪ A team culture based on performance & innovation ▪ Execution on value extraction projects ,additional GLA, expanding tenants, solar and water initiatives ▪ Maintain and improve our Cost to Income ratios under 36% ▪ Stronger tenant retention will minimize income loss and
Slide 28: Jacques Kriel CFO: Financial Update
JACQUES KRIEL CFO FINANCIAL UPDATE
Slide 29: Analysis of Distributable Income per Share
ANALYSIS OF DISTRIBUTABLE INCOME PER SHARE 12 months Comparable ended 12-month 30 September period Cents per share – Unaudited 2022 2021*# Total distributable income Fairvest’s operations – Core portfolio 76.05 76.07 Fairvest’s operations – Income attributable to sold and assets under development 0.
Slide 30: Condensed Consolidated Statement of Financial Position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Audited at Audited at R’000 30 September 2022 30 June 2021 Assets Investment property 15 456 955 3 421 961 Financial assets 196 816 4 533 Trade and other receivables 218 252 71 734 Loans receivable 132 457 285 078 Cash and cash equivalents 134 5
Slide 31: Arrears and Bad Debt
ARREARS AND BAD DEBT % of revenue on an Total Total Total net annualised R000 arrears provision arrears basis Retail 47 133 24 437 22 696 1.8% Office 27 912 16 972 10 940 2.3% Industrial 23 736 18 201 5 535 2.7% 98 781 59 610 39 171 2.0%
Slide 32: Property Portfolio Valuations
PROPERTY PORTFOLIO VALUATIONS 2022 2022 Like-for- Value Rate per Discount Exit Cap like R’million m2 (R/m2) Rates Rate increase Office 2 727 15.1% 10.4% -1.7% 8 994 Retail 8 119 14.3% 9.9% 5.1% 14 472 Industrial 1 254 14.8% 10.3% 6.7% 4 375 TOTAL 12 101 14.5% 10.1% 3.6% 10 515
Slide 33: Capital Expenditure
CAPITAL EXPENDITURE Capital Property % of Value expenditure Value Spend R’000 R’000 Total 149 689 12 100 924 1.2% Retail 70 057 8 118 438 0.9% Industrial 37 202 1 254 047 3.0% Office 42 430 2 728 439 1.6%
Slide 34: Debt and Maturity / Hedge Profile
DEBT AND MATURITY HEDGE PROFILE 3 000 2 511 2 500 1 798 2 000 R Million 1 500 1 001 833 1 000 575 494 290 500 174 173 174 - Debt 2023 2024 2025 2026 Refinance Debt Debt refinanced post year end Swaps
Slide 35: Debt Facilities
DEBT FACILITIES 30 September 31 March R000 2022 2022 Loan to value (SA REIT BP) % 38.1% 39.2% % of debt fixed % 65.6% 69.0% Weighted average cost of funding % 8.9% 8.4% Interest cover Times 2.5 2.4 WA maturity of debt Months 18 13 WA maturity of swaps Months 13 19 Total Debt R’m 4 764.6 4 726.6 Tota
Slide 36: Market Price to Book
MARKET PRICE TO BOOK 12 000 -22% -23% 0% -42% -36% -63% -50% 10 000 10 131 9 919 -100% 8 787 8 656 8 409 8 000 7 768 -150% 6 657 6 000 -200% 5 922 5 377 -250% 4 000 3 231 -300% 2 000 -350% - -400% 2018 2019 2020 2021 2022 Market price NAV
Slide 37: Environmental, Social, Governance
DARREN WILDER CEO ENVIRONMENTAL SOCIAL GOVERNACE
Slide 38: Solar and Water Projects
SOLAR AND WATER PROJECTS ▪ 35 Solar plants fully operational – 14.9 Megawatt installed capacity ▪ Solar plants produced 8.1% of the combined portfolio’s electricity cost for the 12 months ▪ R28.3 million worth of clean energy produced from Oct 2021 – Sept 2022 ▪ 4 Solar plants in construction which
Slide 39: Disposals
DISPOSALS *There were seven sales consisting of the sale of six assets and 1 Erf (the remainder of the asset is still within the portfolio). A further seven properties at a value of R500.9 million (excluding Indluplace) are currently classified as held-for-sale pending registration and transfer.
Slide 40: Prospects
PROSPECTS
Slide 41: Prospects
PROSPECTS ▪ Guidance FY ’23:Distributable earnings per B share of between 40.50 cents per share and 42.00 cents per share ▪ Continue with internal focus ▪ Remain conservatively geared ▪ Continue to simplify the business ▪ Strong focus on tenant retention ▪ Maintain 100% payout ratio Nyanga Junction:
Slide 42: Thank You
THANK YOU