Octodec Investments Limited · JSE:OCT
Octodec Investments — Corporate Update (August 2023)
21 slides from Octodec Investments's corporate update, Aug 24, 2023
Slide 1: Pre-close update August 2023
PRE-CLOSE UPDATE PRE-CLOSE UPDATE Pre-close update OCTODEC INVESTMENTS LIMITED Pre-close update August 2023 August 2023
Slide 2: Agenda
Agenda 1 Octodec at a glance 2 Overview for the period 3 Our portfolio performance 4 Strategy update 5 Questions and answers The Fields OCTODEC INVESTMENTS LIMITED Pre-close update August 2023 1
Slide 3: Octodec at a glance
OCTODEC AT A GLANCE OCTODEC INVESTMENTS LIMITED Pre-close update August 2023
Slide 4: Octodec at a glance
Octodec at a glance How City Property’s inner-city know-how and experience provides us with our competitive advantage. It constitutes our What collective experience, knowledge and culture. It also includes the Our property portfolio is processes and management diversified and well balanced structure
Slide 5: Overview for the period
OVERVIEW FOR THE PERIOD OCTODEC INVESTMENTS LIMITED Pre-close update August 2023 Praetor Forum
Slide 6: Overview for the period
Overview for the period Operating environment • We have recognised the changes in tenant needs and have adapted accordingly • Local economy remains under pressure, with significant levels of unemployment and high interest rate cycle impacting consumers • Assets largely unaffected by gas explosion in
Slide 7: Gas explosion in the Johannesburg CBD
Gas explosion in the Johannesburg CBD Swift response to gas explosion in Johannesburg: Tenant support and building management • A gas explosion occurred on Lilian Ngoyi Street in the Johannesburg CBD, causing damage from Von Brandis Street in the east to Loveday Street in the west, close to eight of
Slide 8: Our portfolio performance
OUR PORTFOLIO PERFORMANCE OCTODEC INVESTMENTS LIMITED Pre-close update August 2023 Dan’s Place
Slide 9: Residential portfolio overview
Residential portfolio overview Residential vacancy trends (%) • Improved occupancy underpinned by continued strong demand for our product 30 25 20 20 • Vacancies excluding The Fields at the end of 20 July were at 3% 15 9 7 7 7 • New deals and yearly renewals done at 10 6 6 6 6 6 6 escalated rentals
Slide 10: Residential portfolio overview continued
Residential portfolio overview continued • Vacancies at The Fields higher than anticipated due to NSFAS Vacancy % comparisons change in accommodation allowance 31 July 2023 31 August 2022 • Rentals decreased on selected units at The Fields to % % accommodate NSFAS tenants Johannesburg 4.6 6.4 • Acti
Slide 11: Commercial portfolio overview
Commercial portfolio overview Leasing highlights – retail/shopping centres: New deals Core lettable vacancies* by sector • A five-year lease was concluded with Pep Home for 296m² at 31 July 2023 31 August 2022 Waverley Plaza. The tenant has taken occupation and commenced % % trading 31 July 2023 • A
Slide 12: Commercial portfolio overview continued
Commercial portfolio overview continued Leasing highlights – retail/shopping centres: Renewals Government: Renewals • Mr Price at Praetor Forum has been renewed for • A three-year lease renewal has been concluded at two years at an inflation-related escalation Locarno for 3 171m² at a rent freeze fo
Slide 13: Lease expiry update: leases above 3 000m2 (FY2023)
Lease expiry update: leases above 3 000m2 (FY2023) at 31 July 2023 Building Tenant Lease expiry GLA (m²) Renewal status Wits Technikon Basa Tutorial Institute December 2022 11 782 A five-year lease renewal was signed at a rent reduction CPA House City Property Administration June 2023 6 208 A five-y
Slide 14: Leases > 3 000m2 expiring FY2024
Leases > 3 000m2 expiring FY2024 at 31 July 2023 Building Tenant Lease expiry GLA (m²) Renewal status CCMA Place CCMA September 2023 3 598 Tender under review – negotiating a five-year lease Marlborough House CCMA October 2023 5 800 Lease extension for nine months submitted to the tenant, whereafter
Slide 15: Collections / arrears
Collections / arrears Total collections as at 31 July 2023 110 105 100 95 90 85 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Commercial Residential Total Collections at 97.9% in Residential and 98.5% in Commercial Arrears stable with collections in line with historic
Slide 16: Strategy update
STRATEGY UPDATE Architect’s render of planned OCTODEC INVESTMENTS LIMITED Pre-close update August 2023 medical suites at Health Connect
Slide 17: Strategy update
Strategy update Financial sustainability • Refinance of R2.9 billion in facilities completed with tenors up to five years • Anticipate the refinance of an unsecured note of R50 million maturing in October 2023 • LTV levels expected to be maintained at below 40% in the short term • Forward starting i
Slide 18: Strategy update continued
Strategy update continued Property portfolio • Sold and transferred six properties for R95 million net of commission • Expect to transfer a further property for an approximate amount of R14.6 million in the current financial year Capital expenditure • Focused on refurbishing and improving our curren
Slide 19: Focused approach
Focused approach • We continue to employ proactive and reactive strategies to protect and grow the portfolio in the current environment • Commercial, industrial, and residential letting activity and interest across the portfolio • Residential vacancies excluding The Fields were at 3% at the end of J
Slide 20: Questions and answers
QUESTIONS AND ANSWERS OCTODEC INVESTMENTS LIMITED Pre-close update August 2023 Plaza Place
Slide 21: OCTODEC INVESTMENTS LIMITED Pre-close update August 2023
OCTODEC INVESTMENTS LIMITED Pre-close update August 2023