Burstone Group Limited · JSE:BTN

Burstone — Investec Property Fund — H1 FY2012 Earnings Presentation

23 slides from Burstone's earnings presentation, Nov 18, 2011

  1. Slide 1: Interim Results FY2012 Presentation

    Interim Results FY2012 Presentation 18 November 2011

  2. Slide 2: Agenda

    Agenda  Introduction  Financial review  Operational overview  Acquisitions  Prospects  Annexure 2

  3. Slide 3: Introduction to the Investec Property Fund

    Introduction to the Investec Property Fund Quality property portfolio providing strong platform for growth Investec Free float 50.1% 49.9% Asset and property Investec Property manager Investec Property Fund Limited TOTAL RETAIL OFFICE INDUSTRIAL Number of properties 29 properties 4 properties 7 prop

  4. Slide 4: Agenda

    Agenda  Introduction  Financial review  Operational overview  Acquisitions  Prospects  Annexure 4

  5. Slide 5: Income statement extracts

    Income statement extracts September Forecast Annualised 2011 FY2012 performance 6 months 12 months vs. forecast R'000 R'000 Rental revenue 95,047 195,531 (2.8%) Property expenses (16,386) (35,569) (7.9%) Net property income 78,661 159,962 (1.7%) Other operating expenses (1,321) (2,383) 10.9% Asset m

  6. Slide 6: Balance sheet extracts

    Balance sheet extracts September 2011 R’000 Non-current assets Fair value of investment properties including straight line rental revenue 1,708,363 Current assets 92,910 TOTAL ASSETS 1,801,273 Linked Unitholders’ interest 1,711,863 Share capital 1,700 Fair value of debentures 1,710,163 Current liabi

  7. Slide 7: Key ratios

    Key ratios September Forecast 2011 FY2012 6 months 12 months Income statement  Property expense ratio 17.2% 18.2%  Operating expense ratio (including asset management fees) 5.9% 5.6%  Total expense ratio 23.2% 23.7%  Bad debts (R’000) 0.8 -  Bad debts as % of gross property revenue 0.0% n/a Bal

  8. Slide 8: Agenda

    Agenda  Introduction  Financial review  Operational overview  Acquisitions  Prospects  Annexure 8

  9. Slide 9: Geographic spread of property portfolio

    Geographic spread of property portfolio Geographic spread by GLA Geographic spread by revenue Eastern North Eastern North Cape West Cape West KwaZulu- 1% 3% 1% Natal 3% 7% KwaZulu - Natal 16% Western Cape 19% Western Cape Gauteng 19% 61% Gauteng 70% 9

  10. Slide 10: Sectoral spread of property portfolio

    Sectoral spread of property portfolio Sectoral spread by GLA Sectoral spread by revenue Retail Retail 8% 10% Office 24% Industrial 40% Industrial Office 66% 52% 10

  11. Slide 11: Tenant spread

    Tenant spread Tenant spread by GLA – at listing Tenant spread by GLA – post acquisitions C-grade C-grade 8% 7% B-grade B-grade 26% 25% A-grade 66% A-grade 68% 11

  12. Slide 12: Vacancies

    Vacancies Vacancy profile by sector (by GLA) 300,000 95% tenanted 250,000 Vacant 200,000 150,000 100,000 50,000 Fully let Fully let 0 Office Industrial Retail Tenanted Vacant 12

  13. Slide 13: Lease expiry profile

    Lease expiry profile Lease expiry profile (by GLA and Income) 40% 35% 33% 30% 25% 23% 22% 20% 20% 18% 18% 18% 17% 15% 14% 10% 8% 4% 4% 5% 0% 2012 2013 2014 2015 2016 Thereafter Income receivable GLA 13

  14. Slide 14: Agenda

    Agenda  Introduction  Financial review  Operational overview  Acquisitions  Prospects  Annexure 14

  15. Slide 15: Acquisitions

    Acquisitions Innovation Bram Fisher Drive Randburg GLA (m2) 15,500 Cost R151m Valuation R160m Lease 10 years Escalation 8% Tenant Innovation Average gross rent R78.84/m² Effective date 1 Oct 2011 15

  16. Slide 16: Acquisitions

    Acquisitions Scientific Malibongwe Drive Kya Sands GLA (m2) 5,733 Cost R34.9m Valuation R34.5m Lease 7 years Escalation 8% Tenant Scientific Average gross rent R54.21/m² Effective date 1 Oct 2011 16

  17. Slide 17: Acquisitions

    Acquisitions Great North Road Plaza Musina GLA (m2) 13,561 Cost R145m Escalation 8% Average gross rent R82.23/m² Tenancy Nationals 88% by GLA 83% by Income Lease expiries Shoprite Sep 2019 Cashbuild Apr 2020 Woolworths Apr 2020 Others 5 yrs Effective date On transfer 17

  18. Slide 18: Acquisitions

    Acquisitions General Electric - redevelopment Corporate Park Midrand GLA (m2) 11,180 Cost R118.8m Valuation R123.0m Lease 8 years Escalation 8.5% Tenant GE SA Average gross rent R68.24/m² Effective date On transfer 18

  19. Slide 19: Agenda

    Agenda  Introduction  Financial review  Operational overview  Acquisitions  Prospects  Annexure 19

  20. Slide 20: Prospects

    Prospects  Key focus areas/ challenges:  Tenant retention  Managing lease expiries  Letting vacant space  Successes  345 Rivonia  Protea Place  5 Walnut Road  Capital funding  Secured bridging facility of R500 million at Jibar plus 225 bps  Assessing medium term note programme  Prospects

  21. Slide 21: Agenda

    Agenda  Introduction  Financial review  Operational overview  Acquisitions  Prospects  Annexure 21

  22. Slide 22: Property portfolio – at listing

    Property portfolio – at listing TOTAL RETAIL OFFICE INDUSTRIAL Number of properties 29 properties 4 properties 7 properties 18 properties GLA 368,530m² 34,424m² 89,469m² 244,637m² Independent market value R1,771,000,000 R179,700,000 R1,015,500,000 R575,800,000 Fair Value (incl straight line rental r

  23. Slide 23: Disclaimer

    Disclaimer The information contained herein is for information purposes only and readers should not rely on such information as advice in relation to a specific issue without taking financial, banking, investment or professional advice. Although information has been obtained from sources believed to

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