Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Investor Presentation (March 2023)
25 slides from Vukile Property Fund's investor presentation, Mar 27, 2023
Slide 1: FY2023 Pre-Close Presentation
FY2023 PRE-CLOSE PRESENTATION 27 March 2023 (Some photographs used in this presentation may have been taken prior to the COVID-19 pandemic and resultant health and safety requirements)
Slide 2: Agenda
AGENDA 1 INTRODUCTION Laurence Rapp 2 SOUTH AFRICAN PORTFOLIO Itumeleng Mothibeli 3 CASTELLANA PROPERTIES PORTFOLIO Alfonso Brunet 4 FINANCE AND TREASURY Laurence Cohen 5 GUIDANCE Laurence Rapp Q&A 2
Slide 3: Introduction
1 INTRODUCTION Laurence Rapp 3
Slide 4: Introduction
1INTRODUCTION Exceptionally happy to present our pre-close update showing continued very strong operating results in both SA and Spain: Contrary to the challenging macro conditions Highlights the success of our focus on the consumer, value-added projects and hands-on active asset management SA resul
Slide 5: South African Portfolio
2 SOUTH AFRICAN PORTFOLIO Itumeleng Mothibeli 5
Slide 6: Retail Portfolio Performance and Trading Environment
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT CONTINUED STRONG OPERATING METRICS THAT HAVE FURTHER IMPROVED OVER THE PAST 12 MONTHS FEB SEP MAR FEB SEP MAR Portfolio trading metrics showing continued improvement resulting in like-for-like 2023 2022 2022 2023 2022 2022 NOI growth of 5.3% Portf
Slide 7: Retail Portfolio Performance: Strong Leasing Activity
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT STRONG LEASING ACTIVITY ACROSS ALL SEGMENTS VACANCIES Vacancies reduced by c. 6 000m² from 2.6% to 2.0% - lowest since listing in 2004 Reduced vacancies in urban (2.9% to 2.0%), township (3.6% to 2.8%), rural (1.5% to 0.7%) and commuter (4.7% to 4
Slide 8: Retail Category Performance
RETAIL CATEGORY PERFORMANCE TRADING DENSITIES UP BY 6.0% WITH ANNUAL TURNOVER GROWTH OF 6.4% Restaurants and Fashion and grocery categories (45% of GLA), Bottle stores coffee shops Density 13,9% Density 16,1% delivered improved trading density growth of 4.8% Density 16,9% Density 16,8% (FY22 4.3%) a
Slide 9: Retail Portfolio Performance: Improved Footfall and Sales
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT IMPROVED FOOTFALL AND SALES Sales 106.4% Year-on-year portfolio sales up 6.4% and continue to grow Footfall across all major categories Portfolio trading density growth of 6.0% (FY22 6.1%) 115% 114% All four main segments have shown a significant
Slide 10: Energy Management
ENERGY MANAGEMENT PLANNED POWER BACKUP 12.7MW of Solar PV installed over the past five years – equating to 9% of portfolio energy consumption Installation of 2.3MW completed in FY23 and an additional 3.9MW under construction Aim to add an additional 9.0MW in FY24 to double Solar PV exposure to more
Slide 11: Acquisitions Update
ACQUISITIONS UPDATE PROPOSED ACQUISITION OF TWO STRONG RETAIL SHOPPING CENTRES IN SOUTH AFRICA Pan Africa Shopping Centre located in Alexandra, Johannesburg We have agreed to a purchase price of c.R421 million for phase 1 and c.R254 million for the planned phase 2 (both at a yield of 9.25%) Consent
Slide 12: Castellana Properties Portfolio
3 CASTELLANA PROPERTIES PORTFOLIO Alfonso Brunet 12
Slide 13: Footfall and Sales Index
FOOTFALL AND SALES INDEX OUR ACTIVE ASSET MANAGEMENT CONTINUES TO SHOW AN IMPRESSIVE EVOLUTION IN FOOTFALL AND SALES VS THE BENCHMARK 140% 18 ∕ Footfall: Portfolio surpassed 2019 levels in 1ST WAVE 2ND WAVE 3RD WAVE 4TH WAVE 5TH WAVE 6TH WAVE UKRANIAN WAR November 2022 by +0.5% (accumulated footfall
Slide 14: Sales Performance per Tenant Category
SALES PERFORMANCE PER TENANT CATEGORY SALES VARIATION FY23 YTD APRIL 2022 – FEBRUARY 2023 vs FY20 YTD APRIL 2019 – FEBRUARY 2020 120 000 000 ∕ Sales variation in FY23 YTD APR’22-FEB’23 vs 1.45 % FY20 YTD APR’19-FEB’20: +12.4% 100 000 000 ∕ Key categories such as Fashion & Accessories and Food & Beve
Slide 15: Trading Environment
TRADING ENVIRONMENT UNDERSTANDING OF OUR LOCAL COMMUNITIES DRIVES STRONG FOOTFALL GROWTH AND INCREASED CUSTOMER ACTIVITY ∕ Castellana's portfolio metrics remain solid with one of the best occupancy and collection rates in the market and a robust improvement in footfall and sales across all assets ∕
Slide 16: Operating Activity
OPERATING ACTIVITY OCCUPANCY RATE 98.6% (1) - THE HIGHEST IN THE MARKET, DRIVEN BY STRONG LEASING ACTIVITY KEY KPI´s YTD 28th of February 2023 183 €6.8m OCCUPANCY 28 FEBRUARY LEASES SIGNED NEW RENT SIGNED 2023 98.6% 30 SEPTEMBER 2022 98.4% 80 103 €3.8m €3.0m RENEWALS NEW CONTRACTS RENEWALS NEW CONTR
Slide 17: CPI Indexation Environment
CPI INDEXATION ENVIRONMENT 80% OF THE MGR INDEXED AT AN AVERAGE CPI RATE OF 7.7% WITH MAJORITY OF IMPACT TO BE SEEN IN FY24 ∕ Currently, 99% of the Castellana portfolio, lease agreements in place, are indexed to CPI YOY with every anniversary 14,0% ∕ Minimum Guaranteed Rent (MGR) 1st April 2022: € 5
Slide 18: Investment in Lar España
INVESTMENT IN LAR ESPAÑA ∕ Castellana’s investment in Lar España continues to perform well as a financial investment ∕ In line with our expectations, FY 2022 results reported by the company reflect a strong operational performance similar to what we see in our own portfolio: ∕ Sales in 2022 increase
Slide 19: Financial and Treasury
4 FINANCIAL AND TREASURY Laurence Cohen 19
Slide 20: Recognition of Income from the Investment in Lar España
RECOGNITION OF INCOME FROM THE INVESTMENT IN LAR ESPAÑA ∕ Following Castellana’s initial investment in Lar Espana (LAR), we communicated to the market that Castellana would accrue for dividends from LAR (in Castellana’s FFO) based on historical, declared dividends from LAR ∕ The ‘accrual’ will be do
Slide 21: Recognition of Income from the Investment in Lar España (Continued)
RECOGNITION OF INCOME FROM THE INVESTMENT IN LAR ESPAÑA (CONTINUED) ∕ In terms of IFRS and Spanish GAAP, the LAR dividend of 60 cents per share will be recognised in Castellana in FY23, since LAR will declare the dividend in March 2023 ∕ The under-accrual in FY23, amounting to €3.4m (Vukile share: €
Slide 22: Debt and Treasury Update
DEBT AND TREASURY UPDATE STRONG BALANCE SHEET METRICS RECOGNISED BY DEBT CAPITAL MARKETS AND CREDIT RATING UPGRADE ∕ Balance sheet metrics largely in line with 30 September 2022: ∕ 88% of Group and 79% of South African interest-bearing debt hedged ∕ All interest rate caps are providing protection (w
Slide 23: Guidance
5 GUIDANCE Laurence Rapp 23
Slide 24: Guidance
GUIDANCE ∕ At FY22 results we guided: ∕ an FFO growth of between 5% to 7% to 143.1 to 145.8 cps ∕ Dividend growth of 5% to 7% to 111 cps to 113 cps ∕ We are pleased to confirm that, guidance will be achieved for FY23 at growth in FFO per share and DPS of between 5% to 7% ∕ Based on information to da
Slide 25: Questions and Answers
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