Slide 1: Pre-Close Investor Presentation
Pre-Close Investor Presentation FOR INTERIM PERIOD ENDING 31 AUGUST 2022 PRESENTATION DATE: 31 AUGUST 2022 PROPERTY PEOPLE PLANET PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 11
Slide 2: Table of Contents
TABLE OF CONTENTS 1. ENVIRONMENTAL UPDATE 2. SPEAR OPERATIONAL UPDATE 3. HY2023 SALIENT DETAILS − YTD JULY 2022 4. SECTORAL PERFORMANCE − HY2023 5. OUTLOOK 6. GUIDANCE 7. QUESTIONS MWEB Head Office, Bellville PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 22
Slide 3: Environmental Update
01 ENVIRONMENTAL UPDATE EMAIL QUESTIONS TO INFO@SPEARPROP.CO.ZA Mega Park, Bellville PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 33
Slide 4: The Mission / HY2023 Operating Environment
1. ENVIRONMENTAL UPDATE THE MISSION To be the leading Western Cape-focused REIT and to consistently grow our distribution per share ahead of inflation and within the top quartile of our peer group. HY2023 – OPERATING ENVIRONMENT FY2023 commenced as the real estate Portfolio 100% fixed income. Net YT
Slide 5: Spear Operational Update
02 SPEAR OPERATIONAL UPDATE Sable Square Shopping Centre, Milnerton PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 55
Slide 6: HY2023 Operational Update
2. SPEAR OPERATIONAL UPDATE HY2023 OPERATIONAL UPDATE CURRENT STATUS – HY2023 NEGATIVE CASH VACANCY LOAN TO COMMERCIAL RENTAL RENTAL AVAILABILITY CREEP HOSPITALITY VALUE (LTV) REVERSION COLLECTION R245 million in cash Uptick in letting Increase in portfolio letting Improved reversion • DoubleTree by
Slide 7: HY2023 Salient Details
03 HY2023 SALIENT DETAILS YTD JULY 2022 Liberty Life Building, Century City PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 77
Slide 8: Portfolio Snapshot: Assets R4.47bn
3. HY2023 SALIENT DETAILS − YTD JULY 2022 PORTFOLIO SNAPSHOT 30 ASSETS NUMBER OF PROPERTIES R4.47BN (0.17%) R147M R9 973/M2 ASSET VALUE ASSET VALUE AVERAGE AVERAGE PROPERTY DECREASE PROPERTY VALUE VALUATION (FY2022) LETTING 6.37% AVERAGE IN-FORCE ESCALATIONS 443 155M2 93.50% 26 MONTHS R101.84/M2/PM
Slide 9: Portfolio Snapshot: Distribution, TNAV and Debt
3. HY2023 SALIENT DETAILS − YTD JULY 2022 PORTFOLIO SNAPSHOT ON TRACK DISTRIBUTION 5%−7% 90% 43.47% 6.54% DIPS GROWTH PAYOUT RATIO SA REIT COST-TO- SA REIT ADMIN FORECAST INCOME RATIO COST-TO-INCOME TANGIBLE NET ASSET VALUE (TNAV) R11.22 (0.71%) DECREASE R11.30 TNAV FROM FY2022 FY2022 DEBT 38%−39% 6
Slide 10: HY2023 YTD Total Collections
3. HY2023 SALIENT DETAILS − YTD JULY 2022 HY2023 YTD TOTAL COLLECTIONS (AS AT 22 AUGUST 2022) 95% 96% R290 058 R274 271 94.56% COLLECTED TO BILLED YTD BILLED (R’000) COLLECTED COLLECTED (R’000) PER SECTOR TO BILLED 95% 96% Collections include billings for August 2022 Year-to-date collections have be
Slide 11: Letting Activity
3. HY2023 SALIENT DETAILS − YTD JULY 2022 LETTING ACTIVITY THE TABLE BELOW REFLECTS THE LETTING ACTIVITY FOR THE PERIOD ENDED JULY 2022 Expiries and Gross rental Average gross Renewals/ Gross new Average gross Rental vacated at expiry expiry rental New lets rental new rental reversion GLA R'000 R/m²
Slide 12: Balance Sheet and Funding Update
3. HY2023 SALIENT DETAILS − YTD JULY 2022 BALANCE SHEET AND FUNDING UPDATE YTD JULY FY2022 COVENANTS WEIGHTED AVERAGE 30 39 VARIABLE EXPIRY MONTHS MONTHS COVENANTS YTD JULY 2022 WEIGHTED AVERAGE 26 31 FIXED EXPIRY MONTHS MONTHS LTV 50% 38%−39% YTD JULY FY2022 WEIGHTED AVERAGE 7.79% 7.32% INTEREST RA
Slide 13: Sectoral Performance HY2023
04 SECTORAL PERFORMANCE HY2023 Northgate Park, Brooklyn PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 13 13
Slide 14: Operating Environment Recovering Amid Macro Challenges
4. SECTORAL PERFORMANCE − HY2023 OPERATING ENVIRONMENT RECOVERING AMID MACRO CHALLENGES RETAIL (48 951M2 GLA) COMMERCIAL (130 494M2 GLA) INDUSTRIAL (247 047M2 GLA) Trading has been consistent with positive tenant Letting activity yielding positive results across Robust performance, well located and
Slide 15: Hospitality and General Business and Portfolio Update
4. SECTORAL PERFORMANCE − HY2023 HOSPITALITY (16 663M2 GLA) GENERAL BUSINESS AND PORTFOLIO UPDATE 15 on Orange delivering 100% fixed net income to Spear Operating environment is improving but remains challenging Hotel operator continues to invest own capital in further property Industrial and Retail
Slide 16: Outlook
05 OUTLOOK MWEB Head Office, N1 City PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 16 16
Slide 17: Outlook
5. OUTLOOK OUTLOOK The Western Cape real estate sector has shown consistent resilience Management remains committed to further NAV unlock for across property types YTD shareholders through the development and redevelopment of embedded portfolio bulk rights Good governance across provincial and metro
Slide 18: Guidance
06 GUIDANCE 1 Waterhouse Place, Century City PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 18 18
Slide 19: Guidance
6. GUIDANCE ASSETS GUIDANCE Maintain Western Cape focus in line with strategy, recycle capital into strategy-aligned assets, seeking out CONSISTENT income-enhancement opportunities through investment into high quality real estate assets OBSESSIVE TENANTS FOCUS Proximity to portfolio assets remains a
Slide 20: Thank You / Questions
7. QUESTIONS THANK YOU QUESTIONS? Email questions to info@spearprop.co.za Live Q&A with CEO and CFO after presentation Century City, Cape Town PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2022 20 20