Octodec Investments Limited · JSE:OCT
Octodec Investments — Corporate Update (August 2024)
25 slides from Octodec Investments's corporate update, Aug 23, 2024
Slide 1: Pre-close update August 2024
2024 Pre-close update August 2024 Octodec Investments Limited 0 Pre-close update August 2024
Slide 2: Agenda
Agenda 1 Octodec at a glance 2 Strategy overview 3 Strategy in action 4 Priorities and outlook 5 Questions and answers ELEPHANT HOUSE
Slide 3: Octodec at a glance
Octodec at a glance ONE ON MUTUAL Octodec Investments Limited 2 Pre-close update August 2024
Slide 4: Octodec at a glance
Octodec at a glance WHAT HOW Our property portfolio is diversified and Our expertise and experience, together with our core understanding of the well balanced across all property communities in which we operate, provides us with our competitive advantage. sectors. We have a proven track It constitut
Slide 5: Strategy overview
Strategy overview KEMPTON PLACE
Slide 6: Strategy overview
Strategy overview FY2024 Create sustainable value for Enhance our property Manage our balance sheet Enhance the value of human our stakeholders portfolio and funding structure capital contribution Reduce our vacancies through Invest in sustainable utility Maintain diverse sources of Create and maint
Slide 7: Strategy in action
Strategy in action YETHU CITY
Slide 8: Operating environment
Operating environment − The local economy remains under pressure, with increasing levels of unemployment, high inflation and interest rates impacting consumers, and our ability to increase our occupancy levels and rentals Despite the challenging environment, our residential portfolio remains more
Slide 9: Residential portfolio overview
Residential portfolio overview Residential vacancies (GLA) Residential vacancy trends (units) (%) July 2024 August 2023 30 % % 21 21 20 Johannesburg 9.5 7.4 Kempton Park 1.2 1.2 8 8 8 9 8 8 10 6 7 7 Tshwane (excl Hatfield) 7.6 4.8 Hatfield 9.3 23.7 0 Total vacancies 7.9 8.0 Aug Sep Oct Nov Dec Jan F
Slide 10: Residential portfolio overview [continued]
Residential portfolio overview [continued] The Fields highlights – our student offering Although the residential portion of The Fields was not purpose-built student accommodation, the design was enhanced in line with the students’ needs − Shared and furnished units with kitchen, bathroom, and lounge
Slide 11: Commercial portfolio overview
Commercial portfolio overview Core lettable vacancies* by sector Office sector vacancies − The increase in office vacancies is mainly due to a large college that vacated July 2024 August 2023 − The strategic conversion of HealthConnect and Yethu City will address some of % % the vacancies Offices 24
Slide 12: Material leases concluded during the period
Material leases concluded during the period at 31 July 2024 Building Tenant Lease expiry GLA (m²) Renewal status Marlborough CCMA May 2024 3 598 Renewal and lease conditions concluded in June 2024 House for a three-year lease at a 5% escalation. CCMA Place CCMA June 2024 5 800 Renewal and lease cond
Slide 13: Material expired / expiring leases > 3 000m²
Material expired / expiring leases > 3 000m² at 31 July 2024 Building Tenant Lease expiry GLA (m²) Renewal status Capitol Towers City of Tshwane Metropolitan – 12 086 Tenant remains on a monthly tenancy and indications are North Municipality that they will be moving to a Municipality-owned building
Slide 14: The impact of the gas explosion and how we are addressing it
The impact of the gas explosion and how we are addressing it Although not apparent at the outset of the explosion, the consequences thereof on our tenants have been severe and has impacted Octodec as a landlord, especially considering the time it would take to repair the damage caused by the explosi
Slide 15: Collections / arrears
Collections / arrears Total collections as at 31 July 2024 105 99.8 99.8 99.3 98.9 98.9 98.9 98.3 100 95.8 95.7 94.2 93.8 95 90 85.4 85 80 75 Aug 23 Sep 23 Oct 23 Nov 23 Dec 23 Jan 24 Feb 24 Mar 24 Apr 24 May 24 Jun 24 Jul 24 Collections at 99.7% in Residential and 99.9% in Commercial Arrears stable
Slide 16: Financial sustainability
Financial sustainability − Refinanced R350 million in facilities with tenors of five years − Settlement of R50 million corporate bond and issuance of a new corporate bond of R100 million split between Anchor and Prescient − LTV levels expected to be maintained at around 40% in the short term − All m
Slide 17: Financial sustainability [continued]
Financial sustainability [continued] Deployment of capital − Completed the upgrade of HealthConnect in February 2024 at a total cost of R57.7 million and letting is underway − We have begun construction of our new residential concept, Yethu City at a projected cost of R43.4 million inclusive of VAT
Slide 18: Environmental commitment
Environmental commitment Energy − Completed solar installations at: Prior Spent in periods 2024 FY2024 kWh kWh (R’000) Woodmead Value Mart (shopping centre) 23 447 9.0 Blaauw Village (shopping centre) 55 767 6.7 Sildale Industrial Park (industrial park) 60 265 7.4 The Tannery (industrial par
Slide 19: Social commitment
Social commitment Education Kamane ECD Centre In 2023, we partnered with Cotlands, an established organisation with expertise in early childhood development, to address the need for high-quality ECD centres in the vicinity. We refurbished a floor at a building to accommodate the ECD Centre, which in
Slide 20: Social commitment [continued]
Social commitment [continued] Medical Dis-Chem Community Clinic In 2024, we partnered with Dis-chem to launch a Community Clinic in Tshwane, emphasising our commitment to improving the quality of services for communities in and around Tshwane by providing accessible and affordable healthcare In pa
Slide 21: Priorities and outlook
Priorities and outlook WAVERLEY PLAZA
Slide 22: Priorities and outlook
Priorities and outlook Priorities Outlook The new political landscape has brought about an expectation that South − Successful new concept, Yethu City, paves the way for additional Africa’s trajectory will change, paving the way for economic growth. This conversion opportunities; three vacant office
Slide 23: Release of year end results
Release of year end results Historically, Octodec has released reviewed results at the end of October and audited results at the beginning of December. Management however believes that it is more efficient to release audited financial results instead of two sets of results. Consequently, Octodec wil
Slide 24: Questions and answers
Questions and answers THE FIELDS
Slide 25: Our Vision
Our Vision To innovate in the property market and unlock long-term capital appreciation and income flows, through investment in a well-diversified multisector property portfolio. We remain cognisant of our role as a responsible corporate citizen and aim to achieve our vision, ambition and purpose in