Accelerate Property Fund Ltd. · JSE:APF
Accelerate Property Fund — H1 2020 Earnings Presentation
36 slides from Accelerate Property Fund's earnings presentation, Dec 2, 2019
Slide 1: Interim Results for the period ended 30 September 2019
for the period ended 30 September 2019 INTERIM Results
Slide 2: Table of Contents
TABLE OF Contents At a glance 1 Key priorities 3 Financial results 5 Core growth 8 Letting and arrears 10 Capital structure 13 Fourways Super-Mall 15 Portfolio update 21 European retail 24 Annexure 1: Property portfolio summary 26
Slide 3: At a Glance
GLANCE 1
Slide 4: Accelerate at a glance as at 30 September 2019
ACCELERATE at a glance AS AT 30 SEPTEMBER 2019 Property portfolio Asset value: R12,2 billion Tenant profile A - Large National 65,1% (% of revenue) B - National Listed/Franchises 13,0% Strategic nodes Fourways Precinct 174 944 m² C - Other 21,9% Charles Crescent – Kramerville 47 692 m² Foreshore – C
Slide 5: Key Priorities
KEY 3
Slide 6: Key Priorities
KEY Priorities FOURWAYS GREEN INITIATIVES • Mall open and trading • Major solar investment • Equalisation paid for and transferred • Water savings • Optimise mall operations and management • Reducing carbon footprint • Further opportunities in Fourways SOCIAL INVESTMENT • Extract maximum synergies o
Slide 7: Financial Results
FINANCIAL 5
Slide 8: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF Financial Position 30 Sept 2019 31 Mar 2019 (R’000) (R’000) ASSETS HIGH-LEVEL OVERVIEW OF POSITION Non-current assets 12 252 600 12 205 878 • Investment property movement due to: Investment property 12 252 017 12 203 592 Derivatives - 1 598 – Positive fair value adjustment
Slide 9: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF Comprehensive Income 30 Sept 2019 30 Sept 2018 (R’000) (R’000) Revenue, excl. straight-line rental revenue adjustment 564 423 602 972 HIGH-LEVEL OVERVIEW OF PERFORMANCE Straight-line rental revenue adjustment (9 390) 33 065 • Revenue Revenue 555 033 636 037 Property expense
Slide 10: Core Growth
CORE 8
Slide 11: Core Net Property Income Growth
CORE NET PROPERTY INCOME Growth Core net income growth Core portfolio • Properties in our strategic nodes Office (24.9%) • Remainder of Western Cape portfolio • KPMG portfolio Industrial 1.5% • Citibank • 90,8% of current portfolio Retail 2.2% European - Single tenant 23.1% Total (5.3%) (40%) (20%)
Slide 12: Letting and Arrears
LETTING ARREARS 10
Slide 13: Lease Expiry Profile, Escalations and Debtors Ageing
Lease expiry PROFILE, ESCALATIONS AND DEBTORS AGEING Lease expiry profile by gross rental Contractual escalations 30 Sept 2019 31 Mar 2019 25% Sectoral type (%) (%) 21.7% Industrial 7,4 7,3 20% Office 7,1 7,6 16.4% Retail 7,3 7,3 15% SA portfolio 7,3 7,4 11.7% European retail 0,0 0,0 9.6% 9.4% 8.3%
Slide 14: Vacancy Profile
VACANCY profile Vacancy (GLA) Vacancies as at 30 Sept 2019 (m²) Sectoral type 31 Sept 2019 31 Mar 2019 50 000 28 619 Industrial 2,5% 2,5% 40 000 Office* 24,58% 21,17% 30 000 14 849 20 000 Retail 5,60% 6,25% 2 133 10 000 European retail 0,0% 0,0% 0 0 Office Industrial Retail European retail
Slide 15: Capital Structure
CAPITAL 13
Slide 16: Long-term Debt
Long-term DEBT Long-term debt funding maturity profile (Rm) Long-term 30 Sept 2019 31 Mar 2019 debt allocation (Rm) (%) (Rm) (%) 800 Debt capital markets 1 785 35,1 1 785 33,2 600 Bank funding 3 305 64,9 3 590 66,8 400 Total 5 090 100,0 5 375 100,0 200 Weighted average 2,5 2,5 debt term (years) 0 Sh
Slide 17: Fourways
RATE \ ACCELE
Slide 18: Fourways Mall Opening Press Coverage
Fourways Mall OPENING PRESS COVERAGE Links to articles: http://bit.ly/34MeIjY http://bit.ly/2NzSprQ 16
Slide 19: Inside Fourways Mall
Inside FOURWAYS MALL Inside FOURWAYS MALL 17
Slide 20: Final Update on Equalisation: Fourways
FINAL UPDATE ON EQUALISATION: Fourways • In terms of the Fourways equalisation Accelerate has purchased 12,1% of additional income from Azrapart • The acquisition price of R907,8 million was calculated at a yield of 8,0% (currently valued in the market between 6,25% and 6,50%) • The acquisition pric
Slide 21: The Future of Fourways Mall
The future of Fourways Mall PHASE 1 (COMPLETED) • The Fourways Mall redevelopment represents the completion of Accelerate’s first phase in unlocking future value from the site through developable bulk (1 000 000 m² – supported by council) • Part of the fund’s future strategy is driven by continued g
Slide 22: Fourways Bulk
FOURWAYS Bulk While developing the Fourways Mall site leads to more value creation for the portfolio, Accelerate will continue to add value to the Fourways node through other avenues of growth This strategy is backed by diversifying its investment within the node that has a growing population with a
Slide 23: Portfolio Update
Portfolio UPDATE 21
Slide 24: Foreshore Mixed-Use Development
Foreshore MIXED-USE DEVELOPMENT The best means of extracting value, given gearing levels, is to sell properties while having an option to repurchase the properties No Properties post-completion. In summary: 1 1 Thomas Pattullo • Four properties (in red on the map) will be sold to a proven property d
Slide 25: Portfolio Optimisation
Portfolio OPTIMISATION Properties sold/acquired Status Sales/(purchase) price LTV Fourways Mall equalisation (R907 800 000) 42,1% Kyalami Downs (http://bit.ly/2Qc4HbM) R99 500 000 41,7% Edcon warehouse (http://bit.ly/2XJ2Qgi) R94 000 000 41,2% Additional industrial deal R115 000 000 40,9% Fo
Slide 26: European Retail
ven Terrerer MmPP oe Pe 0p pq CMT BRAT TMNT FP ee rer ACCELERATE 24
Slide 27: OBI Performance
OBI Performance Tenant Fair value at Fair value at turnover growth 30 Sept 2019 – 31 Mar 2019 – year on year Portfolio Remaining Buildings GLA external external 31 Dec 2018 by rental income lease term (m²) (€’000) (€’000) (%) (%) (years) AUSTRIA Wien 3 16 356 43 691 000 42 940 000 10,2 40 7,08 Mauth
Slide 28: Annexure: Property Portfolio
ANNEXURE 1 PROPERTY PORTFOLIO 26
Slide 29: Sector and Geographic Summary
SECTOR AND GEOGRAPHIC Summary Sector profile by revenue (%) Sector profile by GLA (%) Office Office Industrial Industrial 6,0 Retail Retail European retail European retail 15,8 9,4 21,4 12,1 25% 25% 63,2 23,7 48,4 50% 50% Geographic profile by revenue (%) Geographic profile by GLA (%) South Africa S
Slide 30: Tenant Profile
TENANT Profile Tenant profile by revenue (%) Tenant profile by GLA (%) A A B B C C 13,0 14,1 16,6 25% 25% 21,9 69,3 65,1 50% 50% Single vs multi-tenanted by GLA (%) A: Large national tenants, large listed tenants and major franchises, Multi including Absa Bank, Capitec Bank, Dis-Chem, Edcon, FNB, Fo
Slide 31: Thank you
hank you Thank you INVESTOR RELATIONS Articulate Capital Partners: Morne Reinders Tel: 082 INVESTOR 480 4541 RELATIONS Articulate Capital Partners: Morne Reinders Email: morne@articulatepartners.com Tel: 082 480 4541 Email: morne@articulatepartners.com 29
Slide 32: Disclaimer
DISCLAIMER This presentation is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published in whole or in part for any other purpose. This presentation does not constitute an offer or invitation to subs
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Slide 34: Notes
Notes 32
Slide 35: GREYMATTER & FINCH #13359
GREYMATTER & FINCH #13359
Slide 36: www.acceleratepf.co.za
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