Delta Property Fund Limited · JSE:DLT
Delta Property Fund — H1 2025 Earnings Presentation
27 slides from Delta Property Fund's earnings presentation, November 2024
Slide 1: Interim Results Presentation for the Six Months Ended 31 August 2024
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 AUGUST 2024
Slide 2: Agenda
AGENDA Introduction Company Profile Operational Overview Financial Results Conclusion Questions & Answers Delta Towers, KwaZulu-Natal
Slide 3: Introduction
The Marine Building, KwaZulu–Natal INTRODUCTION
Slide 4: Company Profile
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION INTRODUCTION 4 Company Profile Delta Property Fund is a unique sovereign focused fund, predominantly in the office sector Tenant Split: - Sovereign Office: 75% - Commercial Office: 23% - Retail: 2% JSE listed REIT and B-BBEE level 1 contributor The po
Slide 5: Operating Environment
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION INTRODUCTION 5 Operating Environment ▪ The period under review was challenging but showed encouraging signs of economic recovery ▪ High interest-rate environment, with continued relaxation anticipated ▪ Competitive and inflationary climate has resulte
Slide 6: HY25 Operational Highlights
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION INTRODUCTION 6 HY25 Operational Highlights Rental Income Net Operating WALE Income R584 million 16.3 months (Aug 2023: R574 million) (Feb 2024: 15.3 months) R366 million (Aug 2023: R351 million) Profit/Loss for the Proceeds from Vacancy Period propert
Slide 7: Operational Overview
Embassy Building, KwaZulu Natal OPERATIONAL OVERVIEW
Slide 8: Investment property portfolio
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION OPERATIONAL OVERVIEW 8 Investment property portfolio Delta Portfolio Delta Portfolio Delta Portfolio Total (excluding all assets (excluding assets classified as earmarked for disposal) held-for-sale per IFRS 5) Portfolio Value (‘000) R4 233 489 R5 820
Slide 9: Disposal of properties
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION OPERATIONAL OVERVIEW 9 Disposal of properties Gross selling price Properties transferred Transfer date GLA (m²) Fair value (R’000) (R’000) 5 Walnut - Smart Exchange Apr-2024 13 677 46 000 46 000 Sediba, Fountain and VLU Apr-2024 10 947 26 100 27 150 C
Slide 10: Capital Allocation
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION OPERATIONAL OVERVIEW 10 Capital Allocation Repairs and Maintenance (R'000) Capital Expenditure (R'000) R11 million spent in HY25 (FY24 R27.3 million | HY24 R11.2 million) R17.7 million capex spent in HY25 (FY24 R47.5 million | HY24 R26.2 million) Majo
Slide 11: Leasing Profile
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION OPERATIONAL OVERVIEW 11 Leasing Profile Tenant Category GLA (m²) Sectoral Split GLA (m²) Tenure (number of leases) Number Total of leases GLA (m²) 12 -36 >36 DPWI Provincial Other Office Retail Industrial 12 months months months Renewed Leases 43 62 9
Slide 12: Financial Results
CMH Building, Durban FINANCIAL RESULTS
Slide 13: Financial Highlights
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 13 Financial Highlights SA REIT LTV WEIGHTED AVERAGE SA REIT NAV PER SA REIT COST TO COST OF DEBT (WACC) SHARE (RAND) INCOME RATIO 60.0% 11.4% 3.6 46.9% (Feb 2024 60.9%) (Feb 2024 10.0%) (Feb 2024 3.5) (Aug 2023 45.4%) COVENANT INTER
Slide 14: Consolidated Statement of Comprehensive Income
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 14 Consolidated Statement of Comprehensive Income Figures in R'000 HY2025 HY2024 FY2024 Rental Income 583 655 573 752 1 162 617 Straightline rental income accrual 2 603 (3 559) (24 866) Total Revenue 586 258 570 193 1 137 751 Propert
Slide 15: Consolidated Statement of Financial Position
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 15 Consolidated Statement of Financial Position Figures in R'000 HY2025 HY2024 FY2024 ASSETS Non-current Assets 5 877 469 5 499 765 5 442 472 Investment property 5 820 750 5 384 461 5 357 988 Investment in listed securities 54 945 10
Slide 16: Key Debt Management Highlights
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 16 Key Debt Management Highlights HY2025 HY2024 FY2024 Cash and undrawn facilities (R'000) 32 700 65 753 40 439 % of floating debt hedged (R'000) - 24.2% 8.7% Weighted average debt maturity (months) 7.6 10.9 5.1 Investment property a
Slide 17: Debt Covenants
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 17 Debt Covenants HY2025 HY2024 FY2024 Investment Property and Debt ICR Investment in Listed Securities LTV % LTV % ICR times LTV % ICR times (R'000) times (R'000) Actual 6 638 764 3 875 222 58.5% 1.4 60.0% 1.3 59.4% 1.3 Required Lim
Slide 18: HY2025 Reduction of debt
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 18 HY2025 Reduction of debt Debt (R'000) Balance of Debt at February 2024 4 042 660 Year to date Movements: Drawdowns 942 Amortisation (43 168) Reduction through disposal of property (92 484) Reduction funded by dividend income (4 05
Slide 19: Cashflow allocation and generation
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 19 Cashflow allocation and generation SOURCES OF CASH (R'000) USES OF CASH (68) Acquisition of property, plant and equipment 692 (1 826) Repayment of lease liability Finance Income (16 226) Capital expenditure on investment Proceeds
Slide 20: SA REIT Funds from Operations (R'000)
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 20 SA REIT Funds from Operations (R'000) Figures in R'000 HY2025 HY2024 FY2024 Loss per IFRS Statement of Comprehensive Income attributable to parent A 29 519 67 517 (66 482) Accounting specific adjustments: B 24 884 (12 405) 230 240
Slide 21: SA REIT Funds from Operations (FFO) Bridge (R'000)
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 21 SA REIT Funds from Operations (FFO) Bridge (R'000) Increase Decrease Total 70 000 60 000 57 979 14 969 57 635 50 000 14 954 40 000 -17 055 30 000 13 300 -11 092 20 000 -8 195 2 013 -5 834 1 111 1 456 385 10 000 -4 116 -1 123 -1 11
Slide 22: Net Asset Value (NAV) bridge (R'000)
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION FINANCIAL RESULTS 22 Net Asset Value (NAV) bridge (R'000) Increase Decrease Total 3000 000 37 047 36 472 21 664 4 902 96 539 2550 502 2520 984 -1 900 -2 289 -7 739 -24 387 -25 691 2500 000 -105 100 2000 000 1500 000 1000 000 500 000 0 NAV (FY2024) Inc
Slide 23: Conclusion
Devonshire Place, KwaZulu–Natal CONCLUSION
Slide 24: Conclusion
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION CONCLUSION 24 Conclusion 1. The strategy is premised on the disposal of non-core properties as part of curing covenants 2. Cost containment and liquidity improvements are core focus areas 3. Over the medium-term, Delta will evolve into a smaller, but
Slide 25: Questions & Answers
Hensa Building, Limpopo QUESTION & ANSWERS
Slide 26: Notes
DELTA PROPERTY FUND INTERIM RESULTS PRESENTATION Q&A 26 NOTES
Slide 27: Thank You
VY, DELTA THANK YOU