Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — FY2016 Earnings Presentation
76 slides from Emira Property Fund's earnings presentation, August 2016
Slide 1: Results for the Year Ended 30 June 2016
RESULTS FOR THE YEAR ENDED 30 JUNE 2016 August 2016
Slide 2: Agenda
AGENDA Overview Financials Portfolio Outlook › Key metrics › Distribution statement › Portfolio performance › How we define › 5-year track record › Balance sheet › Capex projects ourselves acquisitions and › FY17 outlook disposals › Corporate action › Summary 2
Slide 3: Overview
Overview Geoff Jennett CEO 3
Slide 4: Key Metrics at June 2016
KEY METRICS AT JUNE 2016 Distributions per Share +8.8% NAV per Share -0.9% to 1 735c Vacancies 5.3% Tenant retention 75% Acquisitions R244.4m Disposals R284.5m Capex projects R801.7m LTV 35.4% 4
Slide 5: 5-Year Track Record
5-YEAR TRACK RECORD 2 000 160 1 800 1 698 1 751 1 735 140 1 600 1 496 1 325 1 470 1 511 120 1 400 1 275 1 358 1 200 1 153 100 1 000 80 800 60 600 40 400 200 20 0 0 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 PI Price (LHS) NAV (LHS) Distribution (RHS) Compound annual growth rate in NAV of 12-month share pric
Slide 6: Financials
Financials Greg Booyens CFO 6
Slide 7: Distribution Statement
DISTRIBUTION STATEMENT R’000 Jun 15 Jun 16 % ch Revenue 1 686 670 1 780 516 5.6 Property expenses (580 756) (633 052) 9.0 Lease commission amortisation 0 20 025 100.0 Total property expenses (580 756) (613 027) 5.6 Gross property expenses to revenue ratio (%) 34.4 34.4 Net property expenses to reven
Slide 8: Distribution Statement continued
DISTRIBUTION STATEMENT continued R’000 Jun 15 Jun 16 % ch Net income from property portfolio b/f 1 023 318 1 078 784 5.4 Income from listed property investment 47 388 58 045 22.5 Interest cost (396 023) (401 389) 1.4 Investment income 10 833 10 474 (3.3) Distribution payable 685 516 745 914 8.8 Numb
Slide 9: Balance Sheet
BALANCE SHEET R’000 Jun 15 Jun 16 % ch Investment properties 12 741.1 12 964.9 1.8 Investment in Growthpoint Australia 796.9 940.4 18.0 Other assets 303.1 389.2 28.4 Total assets 13 841.1 14 294.5 3.3 Interest-bearing debt 4 510.4 4 978.2 10.4 Other liabilities 390.7 458.6 17.4 Shareholders equity 8
Slide 10: Net Asset Value per Share
NET ASSET VALUE PER SHARE 1 800 1 751 1 735 28 6 70 (11) 76 Cents 1 700 (39) 1 681 1 659 - 1 600 Jun 15 Revaluation of Revaluation of Other/IFRS Change in Jun 16 Properties GOZ Distribution Liability 0.9% decrease in NAV per share 10
Slide 11: Debt Funding Mix
DEBT FUNDING MIX 700 Utilised Undrawn 600 500 400 Rm 300 200 100 - Aug Aug Aug Sep Nov Nov Nov Feb May Jul Jul Sep Nov Nov May May Jun Aug Aug Sep Mar Sep Sep 16 16 16 16 16 16 16 17 17 17 17 17 17 17 18 18 18 18 18 18 19 19 20 FY16: R2.7bn of Diversified R722m of undrawn, rollovers and new sources
Slide 12: Swap Profile
SWAP PROFILE 900 800 700 600 500 Rm 400 300 200 100 0 Jun Dec Jun Dec Jun Dec Jun Dec Jun Jun Jun Jun Dec 17 17 18 18 19 19 20 20 21 22 23 24 24 Hedged Weighted Weighted average debt expiry duration all in interest rate 93.1% 3.0 years 8.0% 12
Slide 13: Portfolio
Portfolio Ulana van Biljon COO 13
Slide 14: Property Portfolio Summary: Number of Properties
PROPERTY PORTFOLIO SUMMARY: NUMBER OF PROPERTIES 200 180 167 161 160 149 146 141 145 144 140 120 100 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Number of properties Number of properties per sector – 2015 vs 2016 80 61 61 60 46 45 40 23 23 20 15 15 0 Office Urban Retail Rural Retail Industrial
Slide 15: Property Portfolio Summary: Sectoral Split by Value
PROPERTY PORTFOLIO SUMMARY: SECTORAL SPLIT VALUE SPLIT PER SECTOR (%) – 2015 VALUE SPLIT PER SECTOR (%) – 2016 R12.7bn R12.9bn (+1.8%) 15% Office 15% Retail 44% Industrial 44% 41% 41% Downwards adjustment R284.5m transferred out Shift in cap rates (0.4%) of market rentals due to sales and discount r
Slide 16: Property Portfolio Summary: GLA Split
PROPERTY PORTFOLIO SUMMARY: SECTORAL SPLIT GLA SPLIT PER SECTOR – 2015 GLA SPLIT PER SECTOR – 2016 1.2m m² 1.2m m² Office 32% 33% Retail 31% 34% Industrial 35% 35% 16
Slide 17: Office Sector Exposure
OFFICE SECTOR EXPOSURE NUMBER OF PROPERTIES AVERAGE VALUE PER PROPERTY (Rm) 2011 2016 52 61 73 93 GRADE (%) OF OFFICE PORTFOLIO – 2011 GRADE (%) OF OFFICE PORTFOLIO – 2016 2% P-Grade 24% A-Grade 28% 37% B-Grade C-Grade 61% 48% 17
Slide 18: Office Sector Exposure continued
OFFICE SECTOR EXPOSURE continued B & C GRADE % OF TOTAL EMIRA PORTFOLIO A & P GRADE % OF TOTAL EMIRA PORTFOLIO 2011 30% 12% 2016 17% 32% Quality improvement over 5 years 18
Slide 19: Property Portfolio Summary: Average Value
PROPERTY PORTFOLIO SUMMARY: AVERAGE VALUE AVERAGE VALUE PER m² 20 000 14 310 14 085 13 899 14 264 15 000 10 824 10 903 R/m2 10 000 7 138 7 207 5 199 5 130 5 000 0 Office Urban Retail Rural Retail Industrial Total Jun 15 Jun 16 AVERAGE VALUE PER PROPERTY 240 199 208 210 180 Rm 150 120 93 93 88 90 90
Slide 20: Vacancy Profile by GLA
VACANCY PROFILE BY GLA 12% 10.5% 10% 8.8% 7.8% 8% 6% 5.3% 4.5% 4.0% 4% 2.7% 2.8% 2.8% 2.4% 2% 1.0% 1.4% 0% Office Retail Industrial Total Jun 14 Jun 15 Jun 16 › › › › › Stable vacancies Office vacancies 500 Smuts Retail vacancies Industrial vacancies over 3 years increased to (5 201m²) constant at 2
Slide 21: Tenant Retention
TENANT RETENTION 84% 80% 80% 80% 76% 77% 76% 77% 77% 76% 75% 72% 68% 68% 64% 60% Gross rentals m² No. of leases Jun 14 Jun 15 Jun 16 Expiries of 357 909m² comprising 469 leases 21
Slide 22: Major Lease Expiries by GLA
12 MAJOR LEASE EXPIRIES BY GLA Property Tenant Lease end GLA (m²) Status Defy Appliances Defy Sep 15 10 100 Renewed Mitek SA Mitek Jan 16 6 604 Renewed The Studios Re-let 3 438m² CIPLA Dec 15 6 441 Atlas Gardens Expanda biggest of 1 153m² Menlyn SALGA Oct 15 5 939 Renewed Corporate Park Spoor & Fish
Slide 23: Leases Concluded
LEASES CONCLUDED New Renewal Total Number of leases 416 469 885 Total m² 150 037 268 170 418 208 Average duration (years) 3.2 4.0 3.6 Lease value (Rm) 935 1 454 2 389 23
Slide 24: Lease Expiry Profile (by GLA)
LEASE EXPIRY PROFILE (BY GLA) 40% 35.5% 35% 34.0% 30.5% 30% 26.8% 25.4% 25% 22.2% 21.1% 20.4% 20% 18.7% 17.5% 16.7% 15% 13.7% 10% 4.5% 4.0% 5.3% 5% 0.2% 0.8% 0.9% 0.5% 0.5% 1.0% 0% Vacancy Vacated June Expiries Rolled Year 1 Year 2 Year 3 Year 4+ Over Jun 14 Jun 15 Jun 16 24
Slide 25: Reversion – Total (Gross Rentals)
REVERSION – TOTAL (GROSS RENTALS) Avg. Avg. new Increase/ Sector Area expiry rental lease rental decrease % Office 111 461 133.94 130.00 -2.9% Retail 70 398 127.68 132.92 4.1% Industrial 104 110 48.95 48.29 -1.4% Total Jun 16 285 970 101.67 100.97 -0.7% Total Jun 15 200 929 92.50 92.33 -0.2% Total J
Slide 26: Year-on-Year Like-for-Like Growth in Net Income
YEAR-ON-YEAR LIKE-FOR-LIKE GROWTH IN NET INCOME (static portfolio) 12% 10.6% 8% 6.6% 4.4% 4% 0% Gross Income Expenses Net Income Excludes depreciation and Includes R18m accrual Expenses increased lease comm amortisation for Worley Parsons – Leasing expenses both FY15 and FY16 in FY16 26
Slide 27: FY17: Major Upcoming Vacancies by GLA
FY17: MAJOR UPCOMING VACANCIES BY GLA Property Ex-Tenant GLA (m²) From when Corobay Corner Worley Parsons 10 490 Jul 16 1 Kikuyu Road Eskom 7 383 Sep 16 CTI & Menlyn Corporate Menlyn Corporate Park 7 015 Jul 16 Serviced Offices Highgrove S&F Management 5 814 Oct 16 Menlyn Square ABSA 2 457 Nov 16 No
Slide 28: FY17: Major Lease Expiries by GLA
FY17: MAJOR LEASE EXPIRIES BY GLA Property Tenant Lease end GLA (m²) Status Auction Renewed – Addendum with Epping Warehouse Sep 16 13 662 Operation tenant Renewed – Addendum with RTT Continental RTT Group Dec 16 12 921 tenant – short term (Dec 17) 1 Kikuyu Road Eskom Aug 16 7 845 Will vacate Free S
Slide 29: Conclusion
CONCLUSION Tough market conditions Committed management team Further improvement of portfolio quality 29
Slide 30: Portfolio
Portfolio Geoff Jennett CEO 30
Slide 31: Knightsbridge – P-Grade
KNIGHTSBRIDGE – P-GRADE Bryanston Project Cost Completion GLA 29 419m2 R813.8m Sep 19 Phase 1 R339.2m Aug 17 GLA 12 464m2 Phase 2 R100.0m May 18 GLA 3 452m2 31
Slide 32: Summit Place – P-Grade
SUMMIT PLACE – P-GRADE Menlyn Project Cost Completion GLA 15 239m2 R403.5m Sep 17 Building A and C R86.3m Dec 15 GLA 2 738m2 Building D, E and G1 R317.1m Sep 17 GLA 12 502m2 32
Slide 33: Kramerville Corner
KRAMERVILLE CORNER Capital Spend Completion Major Tenants Kramerville Sandton GLA 19 544m2 R85.4m Sep 16 Bakos Brothers 1 031m² (5 yrs) Paco 1 107m² (5 yrs) Completion Value Design Plus 704m² (5 yrs) R220.2m 33
Slide 34: Capex Projects in Progress
CAPEX PROJECTS IN PROGRESS Spend to date (Rm) Value (Rm) Completion Knightsbridge Phase 1 (redevelopment) 22.4 339.2 May 17 Summit Place (Building E) 104.6 179.8 Sep 17 Summit Place (Building G1) 32.8 76.2 Apr 17 Kramerville Corner (redevelopment) 54.9 85.5 Sep 16 Summit Place (Building D) 42.1 61.2
Slide 35: Acquisitions Transferred
ACQUISITIONS TRANSFERRED 3 buildings R244.4m Yield 7.9% › Summit Place › Mitchells Plain (50%) › Ben Fleur (40%) › 1 West (land) 35
Slide 36: Disposals
DISPOSALS 3 buildings R284.5m Forward › Brandwag and Kosmos flats › 1289 Heuwel Avenue yield 6.5% › 284 Oak Avenue 36
Slide 37: Outlook
Outlook Geoff Jennett CEO SES 2 | Plas Chey ime | ‘ f i Lai GMa) byt fee ‘de, . " it ! an Rr |
Slide 38: How We Define Ourselves
HOW WE DEFINE OURSELVES “A South African diversified mid-cap listed REIT” 38
Slide 39: FY17 Outlook
FY17 OUTLOOK Outlook › 20 June 2016 SENS › Negative 2% › Projecting 143c for FY17 Reasons › Office vacancies (8 buildings) › Rental reversions › Sales not materialised › Financing costs higher (rate and capex) Steps › Reassess sectoral exposures › Share buybacks from disposals › Rural retail growth
Slide 40: Corporate Action - Keys
CORPORATE ACTION - KEYS Best interests of shareholders Net asset value and quality portfolio Strategy and team 40
Slide 41: Summary
SUMMARY Strong FY16 8.8% growth in distributions FY17 challenges Rebalancing sectoral allocations Forecast -2% for FY17 FY18 anticipate real growth 41
Slide 42: Thank You
PROPERTY FUND
Slide 43: Annexures
Annexures 43
Slide 44: Liquidity
LIQUIDITY 2 000 50 000 000 1 800 45 000 000 1 600 40 000 000 1 400 35 000 000 1 200 30 000 000 1 000 25 000 000 800 20 000 000 600 15 000 000 400 10 000 000 200 5 000 000 - - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 15 15 15 15 15 15 16 16 16 16 16 16 Closing Price (cents) Volumes Traded 44
Slide 45: Debt Covenants
DEBT COVENANTS Value of Amount Amount Actual LTV ICR properties available drawn LTV covenant Actual covenant Facility Rm Rm Rm % % ICR times Nedbank (secured) 591.1 400.0 200.0 35.8+ 40.0 – 2.0* Nedbank (unsecured) – 614.0 614.0 – 40.0 – 2.0 Standard Bank (secured) 335.9 200.0 200.0 35.8* 50.0 – 2.0
Slide 46: Valuation Parameters
VALUATION PARAMETERS 2015 2016 Total property assets (Rm) 13 537.0 13 904.4 Listed Portfolio GOZ (Rm) 796.9 940.4 Direct property portfolio Valuation (Rm) 12 740.1 12 964.0 % of the portfolio valued externally 33% 33% Average value per property (Rm) 87.9 89.8 Average discount rate 14.8% 15.3% Averag
Slide 47: Cost-to-Income Ratio
COST-TO-INCOME RATIO 45% 40% 39% 35% 34% 35% 30% 25% 20% 16% 15% 13% 13% 10% 5% 0% Gross Net Jun 14 Jun 15 Jun 16 47
Slide 48: Property Expenses: FY15 and FY16
PROPERTY EXPENSES: FY15 AND FY16 (%) 0 11 1 1 2 1 2 3 22 6 1 3 7 1 4 4 5 5 8 8 66 67 Service contracts Consumables Maintenance Staff expenses Security expenses Municipal charges Rent and levies paid Administration expenses Marketing expenses Leasing expenses Refurbishment costs Bad debts 48
Slide 49: Geographic Spread by No. of Buildings
GEOGRAPHIC SPREAD BY NO. OF BUILDINGS: 2015 vs 2016 80 70 60 57 56 50 40 30 30 30 27 27 20 21 20 10 6 6 5 4 0 Johannesburg Pretoria Western Cape KwaZulu-Natal Eastern Cape Bloemfontein 2015 2016 49
Slide 50: Geographic Spread by Value
GEOGRAPHIC SPREAD BY VALUE Geographical spread by value (%) – 2015 Geographical spread by value (%) – 2016 3 5 2 31 2 30 10 11 Johannesburg 11 13 Pretoria Western Cape KwaZulu-Natal 41 42 Eastern Cape Bloemfontein Geographical spread by GLA (%) – 2015 Geographical spread by GLA (%) – 2016 5 4 2 3 13
Slide 51: Properties Excluded from Like-for-Like
PROPERTIES EXCLUDED FROM LIKE-FOR-LIKE The following are excluded from FY15 and FY16 numbers: › Purchases » Mitchells Plain Town Centre, Ben Fleur Shopping Centre, Summit Place (A, C, D, E and G1) › Disposals » Executive City, Kya Sands Corner Precision & Staal Streets, Woodmead Office Park (50%), 1
Slide 52: Year-on-Year Like-for-Like Growth in Net Income
YEAR-ON-YEAR LIKE-FOR-LIKE GROWTH IN NET INCOME (static portfolio) 25% 20.0% 20% 15% 12.6% 13.7% 9.5% 10.8% 10.6% 10% 7.9% 7.5% 6.6% 6.2% 5.8% 4.9% 4.5% 4.4% 5% 2.2% 3.3% 1.5% 0% -0.6% -5% Offices P Offices A Offices B Retail Industrial Total Gross Income Expenses Net Income › › › › Gross income – E
Slide 53: Vacancy Profile by Sector and Grade by GLA
VACANCY PROFILE BY SECTOR AND GRADE BY GLA 16% 15.0% 14% 12% 10.0% 10% 9.1% 8% 7.6% 7.7% 6.9% 6% 5.3% 4.5% 4.0% 4% 2.7% 2.8% 2.8% 2.4% 2% 1.4% 1.0% 0% Prime + Office A Office B Retail Industrial Grand Total Jun 14 Jun 15 Jun 16 53
Slide 54: Value of the Vacancy by Gross Rental
VALUE OF THE VACANCY BY GROSS RENTAL 10% 9.3% 9% 7.9% 8% 7.0% 7% 6% 5.3% 4.9% 5% 4.1% 4% 3% 2.5% 2.4% 2.6% 2.0% 2% 1.2% 1.2% 1% 0% Office Retail Industrial Total Jun 14 Jun 15 Jun 16 54
Slide 55: Vacancy by Sector by Gross Rental
VACANCY BY SECTOR BY GROSS RENTAL 14% 12.2% 12% 10.9% 10% 8.2% 7.9% 8% 7.0% 6.4% 6% 5.1% 5.3% 4.2% 4% 2.6% 2.5% 2.6% 2.0% 2% 1.1% 1.2% 0% Office Prime + A Office B Retail Industrial Grand Total Jun 14 Jun 15 Jun 16 55
Slide 56: Adjusted Vacancy Profile
ADJUSTED VACANCY PROFILE Sector Total GLA Vacant space % Vacant Comment Office 404 081 42 225 10.4 Knightsbridge Manor 6 356 254 4.0 Redevelopment Office balance 397 725 41 971 10.6 Retail 414 568 10 991 2.7 Kramerville Corner 19 373 259 1.3 Refurbishment Retail balance 395 195 10 732 2.7 Industrial
Slide 57: Reversion Renewals (Gross Rentals)
REVERSION RENEWALS (GROSS RENTALS) Avg. Avg. new Increase/ Sector Area expiry rental lease rental decrease Office 95 398 134.73 130.84 -2.9% Retail 53 498 133.82 136.41 1.9% Industrial 81 707 48.36 47.91 -0.9% Total Jun 16 230 602 104.14 102.75 -1.3% Total Jun 15 140 185 94.32 94.46 0.1% Total Jun 1
Slide 58: Reversions New Leases (Gross Rentals)
REVERSIONS NEW LEASES (GROSS RENTALS) Avg. Avg. new Increase/ Sector Area expiry rental lease rental decrease Office 16 064 129.24 125.03 -3.3% Retail 16 901 109.30 121.88 11.5% Industrial 22 403 51.07 49.66 -2.8% Total Jun 16 55 367 91.59 93.57 2.2% Total Jun 15 60 744 88.29 87.40 -1.0% Total Jun 1
Slide 59: Major Lease Expiries by Gross Rental: FY16
MAJOR LEASE EXPIRIES BY GROSS RENTAL: FY16 Property Tenant Lease end GLA (m²) Status Menlyn SALGA Oct 15 5 939 Renewed Corporate Park Menlyn CTI Educational Dec 15 5 316 Renewed – short term (Jun 16) Corporate Park Spoor & Fisher S&F Aug 15 5 814 Renewed – short term (Sep 16) 11 and 13 Management Me
Slide 60: Major Lease Expiries by Gross Rental: FY17
MAJOR LEASE EXPIRIES BY GROSS RENTAL: FY17 Property Tenant Lease end GLA (m²) Status Menlyn Vacated – King Price staggered CTI Educational Jun 16 5 316 Corporate Park take-up 1 Kikuyu Road Eskom Aug 16 7 845 Expecting to vacate Free State Southern Life Plaza May 17 7 268 Expecting to renew Legislatu
Slide 61: Lease Expiry Profile (by Gross Rental)
LEASE EXPIRY PROFILE (BY GROSS RENTAL) Sector Office Retail Industrial Total Vacancy 5.4% 1.2% 0.3% 7.0% Vacated June 0.4% 0.2% 0.1% 0.6% Expiries rolled over 0.3% 0.9% 0.0% 1.2% Year 1 10.9% 7.5% 4.8% 23.2% Year 2 7.9% 7.2% 2.7% 17.8% Year 3 6.5% 6.6% 4.7% 17.8% Year 4+ 11.3% 18.3% 2.8% 32.4% Total
Slide 62: Lease Expiry Profile (by Gross Rental)
LEASE EXPIRY PROFILE (BY GROSS RENTAL) 35% 33.1% 32.3% 31.5% 30% 28.0% 25% 23.2% 23.6% 22.1% 20% 18.3% 17.8% 17.3% 17.8% 15.5% 15% 10% 7.1% 4.8% 5% 4.0% 1.2% 0.2% 0.5% 0.7% 0.4% 0.6% 0% Vacancy Vacated June Expiries Rolled Year 1 Year 2 Year 3 Year 4+ Over Jun 14 Jun 15 Jun 16 62
Slide 63: Lease Expiry Profile – Offices
LEASE EXPIRY PROFILE – OFFICES (BY GROSS RENTAL) 40% 36.3% 35% 30% 28.3% 26.5% 25.6% 25% 24.1% 21.4% 19.8% 19.8% 20% 18.4% 18.3% 17.1% 15.1% 15% 12.7% 10% 8.0% 6.5% 5% 0.9% 0.0% 0.5% 0.0% 0.0% 0.7% 0% Vacancy Vacated June Expiries Rolled Year 1 Year 2 Year 3 Year 4+ Over Jun 14 Jun 15 Jun 16 63
Slide 64: Lease Expiry Profile – Retail
LEASE EXPIRY PROFILE – RETAIL (BY GROSS RENTAL) 50% 45.6% 45% 43.7% 39.6% 40% 35% 30% 25% 19.9% 19.7% 20% 18.2% 17.9% 17.1% 16.6% 16.7% 15.4% 15.8% 15% 10% 5% 2.4% 2.5% 2.9% 0.6% 0.2% 0.5% 1.2% 1.6% 2.1% 0% Vacancy Vacated June Expiries Rolled Year 1 Year 2 Year 3 Year 4+ Over Jun 14 Jun 15 Jun 16 6
Slide 65: Lease Expiry Profile – Industrial
LEASE EXPIRY PROFILE – INDUSTRIAL (BY GROSS RENTAL) 50% 45% 43.7% 40% 36.4% 34.3% 35% 31.1% 29.4% 30% 25% 19.2% 20% 17.9% 18.4% 17.1% 15.9% 15.8% 15% 11.5% 10% 5% 2.9% 1.2% 1.2% 1.5% 2.1% 0.0% 0.5% 0.0% 0.0% 0% Vacancy Vacated June Expiries Rolled Year 1 Year 2 Year 3 Year 4+ Over Jun 14 Jun 15 Jun
Slide 66: Escalations
ESCALATIONS 9.0% 8.5% 8.5% 8.4% 8.2% 8.0% 8.0% 7.9% 7.8% 7.7% 7.7% 7.7% 7.6% 7.6% 7.6% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% Office Retail Industrial Total Jun 14 Jun 15 Jun 16 66
Slide 67: Emira Net Rentals
EMIRA NET RENTALS (excl. parking stores and vacancies) No. of Occupied Avg. net rental Sector buildings GLA (R/m²) Office: P-Grade 4 48 840 171.16 Office: A-Grade 34 179 071 116.19 Office: B-Grade 23 121 727 106.84 Retail: Urban 23 326 264 117.07 Retail: Rural 15 77 397 95.51 Industrial 45 357 756 5
Slide 68: Tenant Grading by GLA
TENANT GRADING BY GLA Total portfolio Per sector 80% 69% 70% 60% 56% 58% 18% 47% 50% 40% 30% 32% 58% 30% 24% 24% 19% 21% 18% 20% 14% 11% 10% 0% Office Retail Industrial Total A B C Grading "A“ Large National Tenants, Large listed tenants, government and major franchisees "B" National tenants, listed
Slide 69: Tenant Exposure by GLA
TENANT EXPOSURE BY GLA TOP 10 TENANTS IN TOTAL TENANT EXPOSURE – PORTFOLIO TOP 10 TENANTS RTT Group 5% 5% Pick n Pay 22% 22% 6% Government 6% Massmart Shoprite 6% Woolworths Edcon 8% 18% Pepkor 78% Auction Operation 10% 14% Little Green Beverages Top 10 Tenants Other Tenants 69
Slide 70: Potential New Capex Projects
POTENTIAL NEW CAPEX PROJECTS Major projects being considered Type m² Value (Rm) Construction time 12 Baker Street & 2 Sturdee Avenue Rosebank Residential 10 500 160 24 months 1 West Street Centurion Residential 24 000 250 18 months Harbour Place Cape Town Office/Retail 21 500 540 24 months Southern
Slide 71: Sustainability Planning
SUSTAINABILITY PLANNING Renewable energy R22 Gas Reporting and targets › Epsom Downs pilot project feedback › Replacement programme underway › Carbon reduction target of 6% year- » Solar farm operating at 92.7% › 63.7% reduction on R22 gas on-year based on FY14 footprint set efficiency, above target
Slide 72: Acquisitions – Office
ACQUISITIONS – OFFICE GLA (m²) Value (Rm) Yield Transfer Summit Place (50% Buildings A and C) Menlyn 3 631 86.3 8.0% Dec 16 Total 3 631 86.3 8.0% 72
Slide 73: Acquisitions – Retail
ACQUISITIONS – RETAIL GLA (m²) Value (Rm) Yield Transfer Mitchells Plain Town Centre (50%), Cape Town 9 007 77.6 9.3% Aug 15 Ben Fleur (40% undivided share), Emalahleni 4 312 63.2 8.2% Feb 16 Total 13 319 140.8 8.8% 73
Slide 74: Acquisitions – Development Land
ACQUISITIONS – DEVELOPMENT LAND Bulk GLA (m²) Value (Rm) Yield Transfer 1 West (land), Centurion 24 577 17.2 n/a Mar 16 Total 24 577 17.2 n/a 74
Slide 75: Disposals
DISPOSALS Book Value Property Location Sector GLA (Rm) Price (Rm) NI (Rm) Yield (%) 284 Oak Avenue Randburg Office 3 787 22.0 23.0 1 .7 7.7% 1289 Heuwel Avenue Centurion Retail 2 049 10.0 11.5 0.5 4.7% Brandwag Shopping Centre + Kosmos flats Bloemfontein Retail 12 328 159.0 250.0 16.2 6.5% Total 18
Slide 76: Top Ten Properties by Value
TOP TEN PROPERTIES BY VALUE Property Node Classification GLA Rm Major tenants Wonderpark Shopping Pretoria Regional S/Centre 90 413 1 663 Pick n Pay (12 867m²), Game (5 292m²), Woolworths Centre (4 135m²), Edgars (3998m²), Checkers (3 981m²), Virgin Active (3 508m²) Menlyn Corporate Park Menlyn Offi