Delta Property Fund Limited · JSE:DLT
Delta Property Fund — FY2025 Earnings Presentation
29 slides from Delta Property Fund's earnings presentation, June 2025
Slide 1: Results Presentation for the Year Ended 28 February 2025
FOCUSING ON THE FUNDAMENTALS RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025
Slide 2: Agenda
AGENDA Introduction Operational Overview Financial Results Conclusion and way forward Questions and Answers Delta Towers, KwaZulu–Natal DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025 2
Slide 3: Introduction
Sleepy Hollow, KwaZulu–Natal INTRODUCTION DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025 3
Slide 4: Company Profile
COMPANY PROFILE Delta is a sovereign underpinned South African domiciled Level 1 B-BBEE REIT. Portfolio profile: • A diversified portfolio of 83 properties, covering a Gross Lettable Area (GLA) of 781,569 m², valued at Hallmark Building, Gauteng R6.4 billion, dispersed across all nine provinces of S
Slide 5: Operating Context
OPERATING CONTEXT • Sector fundamentals are strengthening, indicating a more resilient foundation for long-term recovery • Higher-for-longer interest rate environment expected, notwithstanding the positive impact of three 110 Hamilton, Gauteng rate cuts of 25 bps each since September 2024 • Ongoing
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS FY25 BUSINESS HIGHLIGHTS Rental Income Net Operating Income Portfolio Value Property Disposals R1.1bn R721.4m R6.4bn R405.8m -1.9% 10.3% 3.0% (including properties not (FY24: R 1.2 bn) (FY24: R653.9 mil) (FY24: R6.7 bn) yet transferred) WALE Vacancy Rate 14.7 months -0.6 month
Slide 7: Operational Overview
Liberty Towers, Gauteng OPERATIONAL OVERVIEW DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025 7
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW Delta Portfolio Delta Portfolio (excluding (Assets classified Delta classified as held as held-for-sale per IFRS Portfolio Total for sale per IFRS 5) 5) Portfolio Value (R'000) 5 380 209 1 0009 490 6 389 999 Number of properties 54 29 83 Portfolio LTV 59.5% 59.5% 59.5% Portfolio I
Slide 9: Disposal of Properties
DISPOSAL OF PROPERTIES Gross selling price Property Transfer date GLA (m 2) Fair value (R'000) (R'000) Properties transferred within the year: Smartxchange Apr-24 13 677 46 000 46 000 Sediba, Fountain & VLU Apr-24 10 947 26 100 27 150 Cape Road May-24 5 135 33 000 33 000 5/7 Elliot Sept-24 2 300 6 1
Slide 10: Progress on Property Disposals
PROGRESS ON PROPERTY DISPOSALS 500 000 Fair Value: R436 647 450 000 Gross selling price: R405 848 As these properties fully 400 000 transfer, ICR will improve 350 000 300 000 Amount (R'000) Fair Value: R234 400 250 000 Fair Value: R208 989 Gross selling price: R233 300 Gross selling price: R208 989
Slide 11: Capital Allocation
CAPITAL ALLOCATION REPAIRS AND MAINTENANCE (R'000) R25.0 million spend in FY25 (FY24 R27.6 million) Major Categories of Expenditure in FY25 FY2025 FY2024 Amzo Place, Limpopo Electrical 5,017 13,677 General Maintenance 4,553 10,947 Airconditioning 3,921 5,135 Lifts and Escalators 3,680 2,300 Plumbing
Slide 12: Leasing Activity
LEASING ACTIVITY 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 79 110 723 28 196 7 963 74 564 104 945 5 778 - 23 45 11 New Leases 69 22 068 1
Slide 13: Update on Legal Matters
UPDATE ON LEGAL MATTERS • Delinquency Matter Old Mutual Building, Free State • Ethekwini Property Fund • Orthotouch DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025 Operational Overview 13
Slide 14: Financial Results
Silverstream Office Park, Gauteng FINANCIAL RESULTS DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025 14
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS SA REIT LTV 61.1% Renewal of debt facilities Feb 2024 60.9% Covenant LTV Cost to Income Ratio 59.5% 47.9% Feb 2024 59.4% Feb 2024 49.6% ICR FFO (cents) 1.4 times 15.1 Feb 2024 1.3 times Feb 2024 18.7 cents WEIGHTED AVERAGE COST NAV per share (Rand) OF DEBT 3.4 Regents Place, Gau
Slide 16: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Figures in R'000 FY2025 FY2024 Rental Income 1 140 419 1 162 617 Straight-line rental income accrual 3 002 (24 866) Total Revenue 1 143 421 1 137 751 Property Operating Expenses (422 014) (483 870) Net Operating Income 721 407 653 881 Other Income 19 45
Slide 17: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Figures in R'000 FY2025 FY2024 ASSETS Non-current Assets 5 416 072 5 442 472 Investment property 5 380 209 5 357 988 Investment in listed securities 34 422 80 636 Other non-current assets 1 441 3 848 Current Assets 161 590 123 614 Non-current Assets Held-
Slide 18: Key Debt Management Highlights
KEY DEBT MANAGEMENT HIGHLIGHTS FY2025 FY2024 32 270 40 439 Undrawn cash facilities (R’000) Investment property encumbered as security for debt (R'000) 6 389 699 6 668 633 Secured Debt (R’000) 3 857 711 4 042 660 All-in weighted average cost of debt 11.2% 11.4% Successful renewal of maturing debt fac
Slide 19: FY25 Reduction of Debt
FY25 REDUCTION OF DEBT Debt (R'000) Balance of Debt at February 2024 4 042 660 Harlequins Office Park, Gauteng Movements for the year: Advance of interest-bearing borrowings 37 164 Net movement in interest accrued 2 695 Fees capitalised 12 645 Repayment of interest-bearing borrowings/Amortisation (9
Slide 20: FY25 Reduction of Debt
FY25 REDUCTION OF DEBT DEBT BALANCE 6000000 000 5000000 000 4000000 000 AMOUNT R’ 3000000 000 2000000 000 1000000 000 - 2020 2021 2022 2023 2024 2025 FINANCIAL YEAR Block G, Gauteng Debt repayment over the last 6 years totalling R1.2 billion DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDE
Slide 21: Debt Covenants
DEBT COVENANTS FY2025 FY2024 Investment Property and Debt Investment in Listed Securities LTV % ICR times LTV % ICR times (R'000) (R'000) Total 6 389 699 3 857 711 59.5% 1.4 59.4% 1.3 Required Limit 50.0% 2.0 50.0% 2.0 Variance over/(under) limit 9.5% (0.6) 9.4% (0.7) Mayors Walk, KwaZulu-Natal DELT
Slide 22: Cashflow Bridge (R'000)
CASHFLOW BRIDGE (R’000) Sources of cash Uses of cash 600 000 35 000 10 883 2 630 2 513 500 000 565 366 - 288 -3 910 -28 709 -44 601 400 000 -92 920 300 000 200 000 100 000 - -100 000 -79 061 -446 438 -79 535 -200 000 Total cash at Cash generated Advance of Capital Repayment of Proceeds from Finance
Slide 23: SA REIT Funds from Operations (R'000)
SA REIT FUNDS FROM OPERATIONS (R'000) Figures in R’000 FY2025 FY2024 Loss per IFRS Statement of Comprehensive Income attributable to parent A (104 211) 66 482 Accounting specific adjustments: B 217 794 230 240 Fair value adjustment on Investment Property 174 727 174 997 Debt and equity instruments h
Slide 24: SA REIT Funds from Operations (FFO) Bridge (R'000)
SA REIT FUNDS FROM OPERATIONS (FFO) BRIDGE (R'000) 250 000 107 964 200 000 150 000 133 557 61 856 100 000 -22 198 -28 996 50 000 -25 018 13 368 -10 168 -5 168 -9 269 - SA REIT FFO - Decrease in Increase in tax Increase in Other Decrease in Decrease in FY2024 rental income Decrease in Decrease in SA
Slide 25: Portfolio Fair Value Adjustment Loss/Devaluation
PORTFOLIO FAIR VALUE ADJUSTMENT LOSS/DEVALUATION 1200000 000 1000000 000 800000 000 Amount 600000 000 400000 000 200000 000 - 2020 2021 2022 2023 2024 2025 Financial Year The above is reflective of the mark-down in portfolio fair value between 2020 and 2023, and stabilisation thereof in 2024 and 202
Slide 26: Net Asset Value (NAV) Bridge (R'000)
NET ASSET VALUE (NAV) BRIDGE (R'000) 3000 000 2520 984 2500 000 144 533 2416 773 92 920 -178 286 47 973 49 747 -154 286 5 924 2000 000 -46 214 -53 504 -7 277 -5 308 - 433 1500 000 1000 000 500 000 - Increase in Investment Decrease in Decrease in debt NAV FY25 NAV FY24 Decrease in fair Disposal of De
Slide 27: Conclusion and Way Forward
Phamoko Towers, Gauteng CONCLUSION AND WAY FORWARD DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025 27
Slide 28: Conclusion and Way Forward
CONCLUSION AND WAY FORWARD • Continuing to make significant progress in key aspects of financial performance, including but not limited to disposal of non-core properties, prudent debt management, managing costs, growing net operating income and enhancing leasing. • Continued implementation of the s
Slide 29: Questions and Answers
101 de Korte, Gauteng QUESTIONS AND ANSWERS DELTA PROPERTY FUND RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2025 29