Spear Reit Ltd. · JSE:SEA
Spear Reit — 4 months ended 28 February 2017 Earnings Presentation
27 slides from Spear Reit's earnings presentation, Feb 28, 2017
Slide 1: Provisional Summarised Audited Consolidated Financial Statements
Provisional Summarised Audited Consolidated Financial Statements for the 4 months ended 28 February 2017 Provisional Summarised Audited Consolidated Financial Statements 1 for the 4 months ended 28 February 2017
Slide 2: Table of Contents
Table of Contents 1. Spear REIT at a Glance 2. Highlights 3. Financial Performance MISSION STATEMENT “To be the leading Western Cape-focused REIT 4. Portfolio Overview and to consistently grow our distribution per share ahead of inflation and within the top 5. Subsequent Transactions quartile of our
Slide 3: Spear REIT at a Glance
Spear REIT at a Glance Provisional Summarised Audited Consolidated Financial Statements 3 for the 4 months ended 28 February 2017
Slide 4: Spear REIT at a Glance
Spear REIT at a Glance • JSE listing 11 November 2016 • Western Cape-focused real estate investor • Management conducted internally on all levels • Successful tenant retention programme = High occupancy Geographical Specialist • Value creation through active asset management PORTFOLIO VALUE R1.446 b
Slide 5: Highlights
Highlights Provisional Summarised Audited Consolidated Financial Statements 5 for the 4 months ended 28 February 2017
Slide 6: Highlights
Highlights “ Our objective is to generate “ sustainable and growing income Strategy Execution “ as a specialised REIT. ” DISTRIBUTION PER SHARE 23.51 cents 16.75% over forecast TANGIBLE NET ASSET VALUE PER SHARE 7.01% to R10.03 INVESTMENT PROPERTY 3.79% to R1.446 billion CAPITAL RAISED R369 000 000
Slide 7: Financial Performance
Financial Performance Provisional Summarised Audited Consolidated Financial Statements 7 for the 4 months ended 28 February 2017
Slide 8: Summary Income Statement
Summary Income Statement Group Audited 28 Feb 17 R’000 Total revenue 61 262 Property operating and management expenses (16 294) Net property-related income 44 968 Administrative expenses (4 558) Net operating profit 40 410 Consolidated Fair value adjustment – Investment properties 40 553 Statement of
Slide 9: Summary Balance Sheet
Summary Balance Sheet Group Audited 28 Feb 17 R’000 ASSETS Non-current assets 1 452 376 Current assets 41 136 TOTAL ASSETS 1 493 512 EQUITY AND LIABILITIES Shareholders’ interest 986 808 Non-current liabilities 478 453 Consolidated Current liabilities 28 251 Statement of TOTAL EQUITY AND LIABILITIES
Slide 10: Funding
Funding LTV Total Borrowings Average Cost of Funding Hedged Funding 33.09% R478 m 9.65% 59% Funding Maturity Provisional Summarised Audited Consolidated Financial Statements 10 for the 4 months ended 28 February 2017
Slide 11: Portfolio Overview
Portfolio Overview Provisional Summarised Audited Consolidated Financial Statements 11 for the 4 months ended 28 February 2017
Slide 12: Portfolio Overview
Portfolio Overview Active Asset Management Western Cape: 95.3% of assets Gauteng: 4.7% of assets Number of properties: 25 Portfolio Value: R1.446 billion Average property valuation per m2: R8 380/m2 Provisional Summarised Audited Consolidated Financial Statements 12 for the 4 months ended 28 Februar
Slide 13: Tenant Profiles and Vacancy
Tenant Profiles Proximity to Assets Analysis of the Property Portfolio at 28 February 2017 Tenant Profile Profile by Number by GLA of Tenants Vacancy Profiles Total Vacancy Focused Tenant Retention 1 584m2 Vacant area m2 High Occupancy Rates Provisional Summarised Audited Consolidated Financial Statemen
Slide 14: Top Tenants by Annual Rental
Top 10 Tenants by Annual Rental = R65.2 m The below-mentioned Top 10 Tenants by rental p.a. equate to 37.8% of the total portfolio annual contractual income FY 2018, being R174.9 million (excludes any new acquisitions after the period) Provisional Summarised Audited Consolidated Financial Statements
Slide 15: Lease Expiry Profile by GLA & Revenue
Lease Expiry Profile by GLA & Revenue Provisional Summarised Audited Consolidated Financial Statements 15 for the 4 months ended 28 February 2017
Slide 16: Subsequent Transactions
Subsequent Transactions Provisional Summarised Audited Consolidated Financial Statements 16 for the 4 months ended 28 February 2017
Slide 17: Subsequent Transactions
Subsequent Transactions Transfer Acquisition The Group took transfer of the date value following properties after year end R’000 - Selective House, Tygervalley 14 Mar 17 13 200 - Werksmans, Tygervalley 1 Mar 17 41 200 Expected Acquisition Debt Equity The Group entered into agreement transfer value f
Slide 18: Werksmans, Edward Street, Tygervalley
Werksmans, Edward Street, 142 Edward Street, Tygervalley Tygervalley Main tenants: Werksmans Attorneys & Bigen Africa GLA: 2 609m2 Sector: Commercial Acquisition price: R41 200 000 Acquisition yield: 9.70% WALE: 2 years Provisional Summarised Audited Consolidated Financial Statements 18 for the 4 mo
Slide 19: 78 on Edward, Edward Street, Tygervalley
78 on Edward, Edward Street, Redevelopment Tygervalley Main tenant: TBC Physical address: 78 Edward Street, Tygervalley GLA: 1 980m2 Sector: Commercial Acquisition price: R13 200 000 Acquisition yield: 9.25% WALE: Redevelopment Provisional Summarised Audited Consolidated Financial Statements 19 for
Slide 20: 15 on Orange Hotel & Conference Facility, Cape Town
15 on Orange Hotel & Conference Facility, Cape Town Main tenant: Marriot Hotels International Physical address: 15 Orange Street, Cape Town GLA: 14 681m2 Sector: Hospitality Acquisition price: R298 000 000 Acquisition yield: 9.55% Hotel lease tenure: 16 years Provisional Summarised Audited Consolida
Slide 21: Virgin Active, George
Virgin Active, George Main tenant: Virgin Active South Africa, Physical address: No. 1A Witfontein Road, George GLA: 2 500m2 Sector: Specialised retail Acquisition price: R22 000 000 Acquisition yield: 9.22% WALE: 5 years Provisional Summarised Audited Consolidated Financial Statements 21 for the 4
Slide 22: No. 2 Long Street, Cape Town
No. 2 Long Street, Cape Town Main tenants: DRA Projects SA, Fairheads Benefits, SAMSA Physical address: No. 2 Long Street, Cape Town GLA: 23 671m2 Sector: Commercial Acquisition price: R389 000 000 Acquisition yield: 9.32% WALE: 3 years Planned CapEx: R10 000 000 Provisional Summarised Audited Conso
Slide 23: Mega Park Industrial Estate, Bellville South
Mega Park Industrial Estate, Bellville South Main tenants: Massbuild, Consol Glass, Imperial, Tuffy Group & Storage Team Physical address: Cnr Pieter Barlow & Mill Road, Bellville South GLA: 85 748m2 Sector: Industrial logistics, manufacturing & warehousing Acquisition price: R375 157 000 Acquisitio
Slide 24: Sable Square - Retail & Office Additions
Sable Square - Retail & Office Additions Addition: Retail & office space Physical address: Cnr Bosmansdam & Ratanga Road, Milnerton New GLA: 3 000m2 Sector: Retail & Office Cost of additions: R54 000 000 Yield on additions: 9.25% Completion: December 2017 Provisional Summarised Audited Consolidated Fi
Slide 25: Outlook
Outlook Provisional Summarised Audited Consolidated Financial Statements 25 for the 4 months ended 28 February 2017
Slide 26: Value Proposition & Prospects
Value Proposition & Prospects Cape Town - SA’s highest growth area Diversification across all property sectors Regionally specialised Favourable economic & property fundamentals Portfolio value R1,466 billion GLA of 172 503m2 High quality real Occupancy rate - 99% estate portfolio Internally managed
Slide 27: Questions
Questions Provisional Summarised Audited Consolidated Financial Statements 27 for the 4 months ended 28 February 2017
Spear REIT — 4 months ended 28 February 2017 Earnings Presentation on 6ix