Stor-age Property Reit Ltd. · JSE:SSS
Stor-age Property Reit — Investor Presentation (February 2017)
22 slides from Stor-age Property Reit's investor presentation, February 2017
Slide 1: Capital Raise Presentation
STOR-AGE PROPERTY REIT CAPITAL RAISE PRESENTATION FEBRUARY 2017
Slide 2: Presentation Outline
PRESENTATION OUTLINE • Executive summary • Capital raise details • Key dates • Acquisitions • Investment case • Strategy • Performance • Income statement • Pro-forma financial effects • Balance sheet • Capital structure • Portfolio • Portfolio – pro-forma effect • Conclusion STOR-AGE PROPERTY REIT L
Slide 3: Executive Summary
EXECUTIVE SUMMARY • Accelerated book build of up to R400 million Capital raise • Pricing to be determined on issue • Timing and final quantum of placement to be finalised on issue • Capital raise will allow Stor-Age to maintain strategically well-placed balance sheet post Storage RSA and Units 1 - 4
Slide 4: Capital Raise Details
CAPITAL RAISE DETAILS CAPITAL TO BE RAISED Up to R400 million* Acquisition of Storage RSA: R289 million APPLICATION OF CAPITAL Acquisition of Somerset West: R40 million Reduce debt and fund future opportunities: c. R71 million STRUCTURE Accelerated book build PRICING To be determined on issue RIGHTS
Slide 5: Key Dates
KEY DATES 2017 Announcement of accelerated book build offering Thursday, 16 February Accelerated book build offering opens at 9:00am on Monday, 20 February Expected closing date of accelerated book build Monday, 20 February* New shares expected to be issued and listed at 9:00am on Tuesday, 28 Februa
Slide 6: Acquisitions
ACQUISITIONS • Total property asset value acquired R475 million • RSA debt facilities in place with Nedbank of c. R140 million • Expected to be yield enhancing at 9% forward yield • 6 trading properties, c. 42 750m² of GLA* • 1 development opportunity, c. 4 800m² of GLA (town planning in hand) • Str
Slide 7: Acquisitions (Continued) - Storage RSA
ACQUISITIONS (CONTINUED) • Salient features of Storage RSA: › 5 properties representing c. 37 650m² of GLA* › 4 purpose built and 1 conversion › Investment grade properties in sought after locations › Includes an additional development opportunity in Bryanston (alongside Virgin Active) › Transaction
Slide 8: Acquisitions (Continued) - Somerset West
ACQUISITIONS (CONTINUED) • Salient features of Somerset West: › 1 property representing c. 5 100m² of GLA^, including boutique wine storage facility › High visibility to passing traffic alongside N2 highway › Transaction value c. R40 million ^ SENS Announcement dated 12.12.2016 - GLA stated as 5 500
Slide 9: Investment Case
INVESTMENT CASE • Most dynamic self storage property fund in South Africa • Sector specialists, allowing for focused attention, delivering superior returns • Sophisticated operating platform and benefits of scale • Niche asset class uncorrelated to traditional drivers of property - recession-resilie
Slide 10: Strategy
STRATEGY • Strategic planning conducted in five year cycles • Currently in Y2 to 2020 • Plan is centred on both developing new properties and acquiring existing self storage facilities • Plan details target cities, suburbs and the ideal placement on key arterials • Plan assumes no further significan
Slide 11: Performance
PERFORMANCE Financial (September 2016) • Distributable earnings R55.8 million • Dividend per share 43.04 cents - 6% higher than listing forecast • Conservative gearing of 9% - of which 79% fixed • 100% + fixed from 8 November 2017 Trading (September 2016) • Increase in occupancy of c. 6 900 m² y-o-y
Slide 12: Performance (Continued) - Share price
PERFORMANCE (CONTINUED) Share price Share price performance since listing Cents per share 1 200 Closing price* 1 150 Cents per share 1 100 1 000 30-day VWAP* 1 109 900 High since listing 1 174 800 Nov 15 Jan 16 Mar 16 May 16 Jul 16 Sep 16 Nov 16 Jan 17 Low since listing 861 Share price Share price p
Slide 13: Income Statement - Summarised
INCOME STATEMENT - SUMMARISED 6 months 4.5 months 30 Sep 31 Mar 2016 2016 Earnings and distribution Rm Rm Rental income 73.2 53.3 • Growth in occupancy c. 6 900 m² Rental underpin 2.4 1.6 y-o-y – closing occupancy 86% compared to 82.7% at listing date Other income 2.9 2.0 • Increase in rental rate f
Slide 14: Pro-forma Financial Effects - Use of Funds
PRO-FORMA FINANCIAL EFFECTS - USE OF FUNDS Actual as reported Storage RSA Somerset West Capital raise 30 Sep 16 30 Sep 16 30 Sep 16 30 Sep 16 Pro forma Balance sheet as at Rm Rm Rm Rm Rm Property assets 1 394 435 40 - 1 869 Goodwill and intangible assets 82 - - - 82 Other assets 141 9 - - 141 Total
Slide 15: Pro-forma Financial Effects - Distributions per Share
PRO-FORMA FINANCIAL EFFECTS - DISTRIBUTIONS PER SHARE 12 months to 12 months to 31 Mar 2017 31 Mar 2018 Stor-Age base case before capital raise Distribution per share (cents) 88.00 96.8 Key assumptions Forecast growth in distribution 10% 10% • The projections assume a stable macro-economic environme
Slide 16: Balance Sheet - Summarised
BALANCE SHEET - SUMMARISED 30 Sep 31 Mar 30 Sep 31 Mar 2016 2016 2016 2016 Rm Rm Rm Rm ASSETS LIABILITIES Non-current assets Non-current liabilities Investment properties 1 394 1 371 Bank debt 133 129 Share purchase scheme loans 124 120 Finance lease 3 3 Intangible assets and goodwill 82 82 Other 1
Slide 17: Capital Structure
CAPITAL STRUCTURE • Conservative target gearing range 25% - 35% • Current gearing levels < 15% • Effective interest rate 9.42% • R460 million of undrawn facilities at December 2016 • R200 million drawn at December 2016, with net debt at R190 million • R150 million hedged - interest rate swaps • c. 8
Slide 18: Portfolio
PORTFOLIO 48 Post the Acquisitions, our portfolio will comprise 48 properties (30 in the Listed Portfolio, 12 in the Managed Portfolio and 6 in the pipeline) 42 R2.67bn • TRADING PORTFOLIO: properties 42 properties 11 Pretoria R2.67bn 5 10 Johannesburg c. 18 000 318 000 m² 318 000 m² tenants c. 18 0
Slide 19: Portfolio - Pro-forma Effect
PORTFOLIO - PRO-FORMA EFFECT Pre Acquisitions Acquisitions Post Acquisitions Trading portfolio Properties 36 6 42 GLA 275 250 42 750^ 318 000 Value 2 190 000 475 000 2 665 000 Listed portfolio Properties 24 6 30 GLA 185 950 42 750^ 228 700 Value 1 390 000 475 000 1 865 000 Managed portfolio Properti
Slide 20: Portfolio Overview (Post Acquisitions)
PORTFOLIO OVERVIEW (POST ACQUISITIONS) PROPERTIES Total number of properties 48 ‘Trading Portfolio’ consists of: ‘Listed Portfolio’ (‘Mature’ assets) 30 ‘Managed Portfolio’ 12 Secured - under construction / to be developed 6 LISTED PORTFOLIO Gross asset value R1.87 billion GLA 228 700 m² 2017 foreca
Slide 21: Conclusion
CONCLUSION • Acquisitions › rare, high quality multi-property opportunity in SA market › strengthens Stor-Age’s profile › short term focus - completing the Acquisitions and integration seamlessly • Solid self storage sector fundamentals albeit in a challenging economic environment • FY2017 distribut
Slide 22: Disclaimer & Confidentiality
DISCLAIMER & CONFIDENTIALITY This document is strictly confidential and is not for publication or circulation. All information contained herein is strictly confidential and proprietary and may not be copied, reproduced, communicated, transmitted or distributed, in whole or in part, to any person or
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