Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2021 Earnings Presentation
18 slides from Vukile Property Fund's earnings presentation, Mar 31, 2021
Slide 1: FY2021 Pre-Close Results Presentation
FY2021 31 March 2021 PRE-CLOSE RESULTS PRESENTATION 1
Slide 2: Direct Southern African Retail Portfolio Highlights
SOUTHERN AFRICAN RETAIL PORTFOLIO / PRE-CLOSE 31 MARCH 2021 DIRECT SOUTHERN AFRICAN RETAIL PORTFOLIO HIGHLIGHTS Shoppers back at malls with footfall at 93% compared to > Rural centres exhibit the most significant improvement, now at 104% compared to February 2020. February 2020 Township and commuter
Slide 3: Highlights Continued
SOUTHERN AFRICAN RETAIL PORTFOLIO / PRE-CLOSE 31 MARCH 2021 DIRECT SOUTHERN AFRICAN RETAIL PORTFOLIO HIGHLIGHTS CONTINUED > 3m+ customers on our digital captive portal database providing great potential for future direct marketing opportunities Continued progress on customer centricity journey > App
Slide 4: Key Retail Portfolio Metrics
SOUTHERN AFRICAN RETAIL PORTFOLIO / PRE-CLOSE 31 MARCH 2021 DIRECT SOUTHERN AFRICAN RETAIL PORTFOLIO KEY RETAIL PORTFOLIO METRICS Like-for-like net Vacancies Reversions Base Contractual PERFORMANCE income growth rentals escalations OVERVIEW -9.9% incl COVID 3.3% GLA -3.1% out of 279 leases renewed 6
Slide 5: Collections
FINANCE AND TREASURY / PRE-CLOSE 31 MARCH 2021 COLLECTIONS COLLECTED R1.938 BN (98%) OF R1.984 BN BILLED (NET OF COVID CONCESSIONS GRANTED C. 1 MONTH’S RENT) COVID-19 concession as percentage of Billed Collected monthly rent National tenants (99%) 88% Mid-tier tenants (96%) 176% SMME (94%) 151% Fash
Slide 6: Retail Category Performance
SOUTHERN AFRICAN RETAIL PORTFOLIO / PRE-CLOSE 31 MARCH 2021 RETAIL CATEGORY PERFORMANCE AVERAGE TRADING DENSITIES SHOWED GROWTH OF 0.6%; ANNUAL TURNOVER CONTRACTED BY 3.3% Grocery/ Supermarket Pharmacies Density 7.1% Density 12.1% Turnover 7.6% Turnover 13.3% Year-on-year turnover growth Fashion Hom
Slide 7: Footfall
SOUTHERN AFRICAN RETAIL PORTFOLIO / PRE-CLOSE 31 MARCH 2021 FOOTFALL RECOVERED TO 93% OF PRIOR YEAR > Rural centres recovered to 104% compared 85% 33% 58% 71% 80% 81% 83% 88% 83% 90% 86% 93% to prior year and are performing well > Township centres at 98% of prior year, with community centres first t
Slide 8: Footfall and Sales
SOUTHERN AFRICAN RETAIL PORTFOLIO / PRE-CLOSE 31 MARCH 2021 FOOTFALL AND SALES RURAL AND VALUE CENTRES SHOWING SIGNIFICANT GROWTH IN BASKET SIZE > Sales have rebounded faster than footfall continuing the 105% trend of larger basket sizes, less frequent visits and more focused shopping > Rural centre
Slide 9: COVID-19 in Spain
CASTELLANA PROPERTIES / PRE-CLOSE 31 MARCH 2021 COVID-19 IN SPAIN SPAIN IS EXITING A “THIRD WAVE” WITH MORE TESTING, LOWER DEATH COUNT, AND 3% OF THE POPULATION VACCINATED COVID-19 DEATHS CONFIRMED BY THE SPANISH MINISTRY OF HEALTH State of Alarm Announcement of declared de-escalation plan – hard na
Slide 10: COVID-19 in Spain: Vaccination Program
CASTELLANA PROPERTIES / PRE-CLOSE 31 MARCH 2021 COVID-19 IN SPAIN OBJECTIVE: REACH GROUP IMMUNITY BY SEPTEMBER 2021 WITH AT LEAST 70% OF THE POPULATION VACCINATED VACCINATION PROGRAM SPAIN VACCINATION TIMETABLE > Acquisition of the vaccine is coordinated and authorized for use by the European Commis
Slide 11: Safe and Secure Events and Promotions
CASTELLANA PROPERTIES / PRE-CLOSE 31 MARCH 2021 SAFE AND SECURE EVENTS AND PROMOTIONS CUSTOMERS HAVE RETURNED TO OUR CENTRES AS SOON AS RESTRICTIONS WERE LIFTED > We strive to provide safe spaces our customers can enjoy > Health and hygiene protocols continue to follow best practices > Our customers
Slide 12: Shopping Centre Footfall & Sales
CASTELLANA PROPERTIES / PRE-CLOSE 31 MARCH 2021 SHOPPING CENTRE FOOTFALL & SALES STRONG REBOUND IN FOOTFALL AND SALES AS SOON AS CUSTOMERS ARE ABLE TO RETURN - LARGE RETAIL PARK EXPOSURE CONTRIBUTING TO SALES OUTPERFORMANCE 2020 2021 18 115% 1ST WAVE 2ND WAVE (3) 3RD WAVE (3) 16 95% > Larger basket
Slide 13: Discounts
CASTELLANA PROPERTIES / PRE-CLOSE 31 MARCH 2021 DISCOUNTS INITIAL COOPERATION WITH TENANTS IN FIRST WAVE HAS ENSURED A SMOOTH AND COLLABORATIVE RELATIONSHIP OVER THE PAST 12 MONTHS WHILE MAINTAINING HIGH OCCUPANCY RATE > Majority of tenant relief granted up until September 2020 > Tenants have contin
Slide 14: Leasing Activity
CASTELLANA PROPERTIES / PRE-CLOSE 31 MARCH 2021 (1) LEASING ACTIVITY 2) OCCUPANCY RATE 97% CONTINUOUSLY CLOSING AGREEMENTS OPENING NEW STORES DURING THE PANDEMIC DUE TO THE STRENGH ZARA YELMO CINES OF OUR ASSETS’ RELATIONSHIPS AND RETAIL EXPERTISE 99 €5.7m LEASES SIGNED NEW RENT SIGNED MEDIA MARK FO
Slide 15: Treasury Update at 28 February 2021
FINANCE AND TREASURY / PRE-CLOSE 31 MARCH 2021 TREASURY UPDATE AT 28 FEBRUARY 2021 SIGNIFICANT PROGRESS IN MANAGING REFINANCING AND FURTHER IMPROVING LIQUIDITY > MEREV Option extended for 3 years (term sheet agreed and legal agreements being finalised) > Effective 1 February 2021; > New maturity 31
Slide 16: Treasury Update at February 2021
FINANCE AND TREASURY / PRE-CLOSE 31 MARCH 2021 TREASURY UPDATE AT 28 FEBRUARY 2021 SIGNIFICANT PROGRESS IN MANAGING REFINANCING AND FURTHER IMPROVING LIQUIDITY > Majority of FY2022 debt expiries in Q4 2021: > €56.8m of Vukile EUR bank debt maturing after 30 September 2021 – will evaluate conversion
Slide 17: Approach to Dividend Payments
FINANCE AND TREASURY / PRE-CLOSE 31 MARCH 2021 APPROACH TO DIVIDEND PAYMENTS EXPLAINING OUR THINKING, NOT PROVIDING GUIDANCE > Given ongoing Covid uncertainty, it is difficult to provide guidance to the market in respect of an event four months hence > However, assuming things remain as is, we would
Slide 18: Approach to Dividend Payments: Cash Retention Flexibility
FINANCE AND TREASURY / PRE-CLOSE 31 MARCH 2021 APPROACH TO DIVIDEND PAYMENTS POTENTIAL FLEXIBILITY IN CASH RETENTION RATIO WHILST STILL RETAINING OUR REIT STATUS > In terms of JSE rules, an SA REIT must distribute at least 75% of distributable profits, subject to the solvency and liquidity test per