Grit Real Estate Income Group Limited · LSE:GR1T
Grit Real Estate Income — FY2025 Earnings Presentation
20 slides from Grit Real Estate Income's earnings presentation, Jun 30, 2025
Slide 1: FY25 Results Update
FY25 RESULTS UPDATE For the six months and 12 months ended 30 June 2025 10 YEARS OF PIONEERING IMPACT AFRICAN REAL ESTATE 1
Slide 2: Vision Statement: Impact Real Estate
| VISION STATEMENT IMPACT REAL ESTATE WE ARE A FAMILY OF PARTNERSHIPS, SETTING THE GLOBAL BENCHMARK IN AFRICA FOR DEVELOPING SMART BUSINESS SOLUTIONS & IMPACT REAL ESTATE THAT GOES BEYOND BUILDINGS 2
Slide 3: Group Strategy
| GROUP STRATEGY The Group’s strategy is to hold controlling interests in high-quality, long-term, income producing assets in Africa with up to 20% of gross asset value (GAV) in risk-mitigated, client-led developments. Grit 2.0 further monetises our intellectual property through additional revenue g
Slide 4: 33 Assets in 11 Territories Across Africa
| STRONG & SUSTAINABLE PROPERTY PORTFOLIO WE ARE PAN-AFRICAN 33 ASSETS IN US$989m 11 TERRITORIES Value of Income-Producing Assets (on consolidation of GREA) ACROSS AFRICA COUNTRY EXPOSURE NIGERIA (3.0%) MOZAMBIQUE (28.5%) MAURITIUS (15.7%) ETHIOPIA (7.6%) KENYA (16.0%) ZAMBIA (10.2%) UGANDA (1.8%) G
Slide 5: Key Highlights for FY2025
| STRONG SUSTAINABLE OPERATIONS & EVIDENCE OF GRIT 2.0 STRATEGY KEY HIGHLIGHTS FOR FY2025 (figures for six-months) Strong Core operations with EPRA portfolio occupancy rose to 92% improved metrics 91.3% of contracted rentals collected Successful Cost Savings Admin costs down by 9.7% initiatives (-21
Slide 6: Executive Summary: Headwinds
| KEY HIGHLIGHTS EXECUTIVE SUMMARY: Headwinds Challenging FY25 results due to: NO. KEY HEADWINDS KEY DRIVER/IMPACT Elevated global interest rates and full-year 1 Prolonged period of high Finance Costs consolidation of GREA debt. EPRA NRV declined by US$9.5cps due to fair 2 Valuation Pressure on NAV
Slide 7: Executive Summary: Tangible Early Recovery Signs
| KEY HIGHLIGHTS EXECUTIVE SUMMARY: Tangible Early Recovery Signs NO. WHAT WE SAID & DID KEY PROOF POINT (What Team delivered) NOI up +13.4%* vs prior period on an IFRS basis, driven by 1 Deliver resilient NOI performance despite headwinds Corporate Accommodation, Medical and Data Centres US$48.5m e
Slide 8: Resilient Portfolio and Operational Performance
RESILIENT PORTFOLIO AND OPERATIONAL PERFORMANCE 8
Slide 9: High-Quality Tenants, Hard Currency, Long-Term Leases
| STRONG & SUSTAINABLE PROPERTY PORTFOLIO HIGH-QUALITY TENANTS, HARD CURRENCY, LONG-TERM LEASES Lease 92% Rank Tenant Industry Income % Currency Income in Hard Currency 1 US Embassy Consular 19.3% US$ 2 Total Mineral & Natural Resources 8.5% US$ 92% 3 LUX Hospitality 4.5% EUR EPRA Occupancy 4 CCI Co
Slide 10: FY25 Financial Review
FY25 FINANCIAL REVIEW 10
Slide 11: Summary of HY25 Results
| HEALTHY ASSET PERFORMANCE SUMMARY OF HY25 RESULTS [object File] Value of Property Portfolio NOI FY25 – Proportionate basis 12M Fair value YOY 30-Jun-2025 Reported NOI3 Change movements Comparable Change US$'000 % US$'000 US$ '000 % Retail 212,624 (0.8%) (10,189) 13,448 (3.9%) Non-Core Hospitality
Slide 12: Cost Optimisation Strategy: Broll Partnership & Efficiencies
| STRONG & FOCUSED COST CONTROLS COST OPTIMISATION STRATEGY: BROLL PARTNERSHIP & EFFICIENCIES Tangible Progress in Operating Cost Reduction Admin Cost to Income-Producing Assets: 1.26% (from 1.63% six months ended 30 June 2024) Strategic Partnership • Transition of non-core property and facilities m
Slide 13: Ongoing Administration Expense Reductions and Further Cost Optimisations
| STRONG & FOCUSED COST CONTROLS ONGOING ADMINISTRATION EXPENSE REDUCTIONS AND FURTHER GROUP COST OPTIMISATIONS Six months ended 30 June 2024 • Head count freeze & staff reductions 1.63% • Senior staff & Board salary reductions Admin cost to Income producing assets • Reduced travel costs (US$7.9m) o
Slide 14: Interest Rate Sensitivity
| ENHANCED HEDGING STRATEGY & TREASURY MANAGEMENT INTEREST RATE SENSITIVITY change vs current WACD (basis Impact of Hedges on all debt WACD Impact (US$ ‘000) points) At 30 June 2025 (including hedges) 9.41% +50bps 9.70% 29 1,656 +25bps 9.58% 17 961 -25bps 9.24% (17) (965) -50bps 9.07% (34) (1,915) -
Slide 15: Group Strategy in Numbers
| GRIT 2.0 STRATEGY GROUP STRATEGY IN NUMBERS Medium-Term Return Targets Shareholder Value Creation Targeted Asset Yield Asset Yield Spread Over WACD Annual NAV growth c.9% c.2% 4% to 7% Admin Cost Ratio Target Development Income 1.0% >c.10.5% of total income producing assets Target dividend payout
Slide 16: Outlook & Concluding Remarks: Progress Underway
OUTLOOK & CONCLUDING REMARKS: PROGRESS UNDERWAY 16
Slide 17: Strategic Priorities for Capital Reorganisation
OUTLOOK STRATEGIC PRIORITIES FOR CAPITAL REORGANISATION The Board and management recognise the necessity of recalibrating the Group’s capital structure to better align the business with its long-term strategic objectives. Improved Free Cash Flow Enhanced Balance Sheet Through targeted debt reduction
Slide 18: Conclusion: Focus Areas and Targets Remain on Track
| GRIT 2.0 STRATEGY CONCLUSION: FOCUS AREAS AND TARGETS REMAIN ON TRACK Proportionate NOI Consistently strong 01 Strong Sustainable Operations +13.0% Leasing activity Strong Property Fundamentals Additional Disposal target Business Simplification Core expertise focus 02 Evidence of Simplify & consol
Slide 19: Thank You
THANK YOU Investor Queries: ir@grit.group 19
Slide 20: Disclaimer
DISCLAIMER This report has been prepared by Grit Real Estate Income Group Limited ("Grit" or the “Company”) solely for your information and should not be considered to be an offer or solicitation of an offer to buy or sell or subscribe for any securities, financial instruments or any rights attachin
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