Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2023 Earnings Presentation
26 slides from Vukile Property Fund's earnings presentation, Sep 26, 2023
Slide 1: Building Communities, Growing Value. FY23 Pre-Close Presentation
BUILDING COMMUNITIES, GROWING VALUE. FY23 Pre-Close Presentation 26 September 2023
Slide 2: Agenda
AGENDA 01 INTRODUCTION Laurence Rapp 02 SOUTH AFRICAN RETAIL PORTFOLIO Itumeleng Mothibeli 03 CASTELLANA PROPERTIES PORTFOLIO Alfonso Brunet 04 FINANCE AND TREASURY Laurence Rapp 05 GUIDANCE Laurence Rapp 06 QUESTIONS & ANSWERS 2
Slide 3: Introduction
01 INTRODUCTION Laurence Rapp 3
Slide 4: Strong start to FY24 with all operating metrics showing trends of sustained growth
01 INTRODUCTION PRE-CLOSE 26 SEPTEMBER 2023 STRONG START TO FY24 WITH ALL OPERATING METRICS SHOWING TRENDS OF SUSTAINED GROWTH ▪ The defensive nature of the South African portfolio and tenant mix, dominance of our assets and active asset management activities continues to deliver excellent results ▪
Slide 5: South African Retail Portfolio
02 SOUTH AFRICAN RETAIL PORTFOLIO Itumeleng Mothibeli 5
Slide 6: Retail portfolio performance and trading environment
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT PORTFOLIO PERFORMANCE OVERVIEW AUG 2023 MAR 2023 AUG 2023 MAR 2023 ▪ Portfolio efficiency measures of trading statistics, tenant Vacancies Rent 2.0% 2.0% 100% 100% retention and rent-to
Slide 7: Improved footfall and sales
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT IMPROVED FOOTFALL AND SALES Sales Footfall Load shedding % of trading hours ▪ Year-on-year portfolio sales increased by 3.6% with portfolio 103.6% trading density growth of 3.5% (FY23 6
Slide 8: Retail category performance
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 RETAIL CATEGORY PERFORMANCE TRADING DENSITIES GREW BY 3.5% WITH ANNUAL TURNOVER GROWTH OF 3.6% ▪ Fashion and grocery categories (46% of GLA), delivered trading density growth of 0.3% (FY23 4.6%) and 5.3% (FY23 9.0%) respectively Health an
Slide 9: Leasing environment overview
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT LEASING ENVIRONMENT OVERVIEW LEASING VACANCIES 210 renewals concluded at total contract value of R564 million on 7.8% of Maintained at 2.0% (15 373m²) GLA (58 710m²) vs. 282 renewals at
Slide 10: Supporting our tenants through innovative marketing activations
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 TRADING ENVIRONMENT SUPPORTING OUR TENANTS THROUGH INNOVATIVE MARKETING ACTIVTIONS THAT ENABLE A GREAT CUSTOMER EXPERIENCE Vukile understands the challenging trading environment, especially for niche tenants such as gyms. It is estimated
Slide 11: Sustainable electricity supply - mitigation strategies
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 ENERGY AND SUSTAINABILITY SUSTAINABLE ELECTRICITY SUPPLY - MITIGATION STRATEGIES Aim to increase PV to 30 MWp BESS project - key challenges and mitigation 30 180 kWp by FY25 Council ▪ Engage with council in parallel to design (19% of port
Slide 12: Project updates on PV and BESS projects
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 ENERGY AND SUSTAINABILITY PROJECT UPDATES ON PV Projects (kWp) AND BESS PROJECTS FY23 FY24 FY25 Bess PV Gen 14 847 7 060 18 024 Existing projects 14 847 Completed Moruleng 1 300 Completed Meadowdale Phase 3 (1 046 kWp @67%) 701 Completed
Slide 13: Castellana Properties Portfolio
03 CASTELLANA PROPERTIES PORTFOLIO Alfonso Brunet 13
Slide 14: Footfall and sales index
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 FOOTFALL AND SALES INDEX OUR ACTIVE ASSET MANAGEMENT CONTINUES TO DELIVER FOOTFALL: IMPRESSIVE GROWTH IN FOOTFALL AND SALES ▪ The accumulated number of visits for the portfolio increased by +7.4% (YTD Aug'23 vs YTD Aug’22), compared to the same MON
Slide 15: Sales performance per tenant category
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 SALES PERFORMANCE PER TENANT CATEGORY € MILLION 120 ▪ For our Fiscal Year (FY‘24), YTD (April – July’23), sales increased by +8.7% compared to the same period in FY23, which was already an increase on the prior year. 11.03 % ▪ Almost all our catego
Slide 16: Operating metrics
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 OPERATING METRICS HIGHEST OCCUPANY AND COLLECTION RATES IN THE MARKET KEY KPI’S YTD 31st OF AUGUST 2023 66 €3.9 million OCCUPANCY (i) LEASES SIGNED NEW RENT SIGNED (i) 31 AUGUST 2023 98.8% (i) 31 MARCH 2023 98.7% 36 30 €2.0 million €1.9 million REN
Slide 17: Trading environment
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 TRADING ENVIRONMENT ENERGIZING OUR MALLS THROUGH INNOVATION AND IMPROVEMENT OF CUSTOMER EXPERIENCE, BASED ON UNDERSTANDING OF OUR CUSTOMERS ▪ Castellana continues to reinforce the leisure offer in assets through differential campaigns and events ▪
Slide 18: El Faro - Hipercor project
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 TRADING ENVIRONMENT EL FARO - HIPERCOR PROJECT Transformative project to strengthen the tenant mix with a supermarket, leisure and leading tier-1 fashion brands GLA affected 20 112m² Capex investment €23 million New brands 8 Start of the works Nove
Slide 19: Vallsur repositioning project
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 TRADING ENVIRONMENT VALLSUR REPOSITIONING PROJECT Strong investment to transform the 1st floor of Vallsur as a reference in F&B and leisure in the city GLA affected 10 171m² Capex investment € 16.7 million New brands 12 PHASE 1 Start of the works A
Slide 20: Lar España proving to be a great investment
03 CASTELLANA PORTFOLIO PRE-CLOSE 26 SEPTEMBER 2023 TRADING ENVIRONMENT LAR ESPAÑA PROVING TO BE A GREAT INVESTMENT ▪ Lar España presented very good set of operational results for the period H1 2023, in line with our forecast: ̶ Sales increased by +7.5% vs. H1 2022 and by +16.1% vs. H1 2019 ̶ Footfa
Slide 21: Finance and Treasury
04 FINANCE AND TREASURY Laurence Rapp 21
Slide 22: Debt and treasury update
04 FINANCE AND TREASURY PRE-CLOSE 26 SEPTEMBER 2023 DEBT AND TREASURY UPDATE STRONG BALANCE SHEET METRICS RECOGNISED BY DEBT CAPITAL MARKET Balance sheet metrics largely in line with 31 March 2023: Group LTV anticipated All FY24 expiries have Management continue to proactively manage interest rates
Slide 23: Guidance
05 GUIDANCE Laurence Rapp 23
Slide 24: Capital allocation
05 GUIDANCE PRE-CLOSE 26 SEPTEMBER 2023 CAPITAL ALLOCATION After significant town planning delays, BT-Ngebs expected to transfer in Q4 FY24 ▪ R400m at a yield of c.9,25% with asset management upside ▪ Funding already in place from previous asset sales Vallsur and El Faro value add projects ▪ Accreti
Slide 25: Guidance
05 GUIDANCE PRE-CLOSE 26 SEPTEMBER 2023 GUIDANCE ▪ The macro environment in South Africa is becoming increasingly more difficult with higher interest rates affecting consumers, but the defensive nature of our portfolio and nodal dominance of our assets continues to buffer performance ▪ Spain is yet
Slide 26: Questions and Answers
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