Growthpoint Properties Limited · JSE:GRT
Growthpoint Properties — H1 2019 Earnings Presentation
85 slides from Growthpoint Properties's earnings presentation, February 2019
Slide 1: Interim Results Presentation for the Half Year Ended 31 December 2018
INTERIM RESULTS PRESENTATION FOR THE HALF YEAR ENDED 31 DECEMBER 2018
Slide 2: Agenda
1 Strategy in Action 2 Group Salient Features AGENDA 3 Financial Results V&A Waterfront 4 Group Investments GOZ Globalworth 5 RSA Portfolio Update 6 Capital Management 7 Conclusion 8 Annexures 2
Slide 3: Strategy in Action
GROWTFPOINT (| @ STRATEGY IN ACTION
Slide 4: Strategy in Action
Internationalisation ▪ 31.3% of property assets, by book value, located offshore. STRATEGY ▪ ▪ 22.5% of EBIT from offshore. Additional R908m investment in GOZ. IN ACTION ▪ Good progress on achieving 30% of assets and EBIT located offshore. − Strategic review to increase this percentage underway. Opt
Slide 5: Group Salient Features
GROWTFPOINT (| GROUP SALIENT FEATURES
Slide 6: Group Salient Features
GROUP SALIENT FEATURES 5.9% increase in distributable income from HY18 to R3.1bn 4.5% distribution growth from FY18 to 105.8 cents per share 4.3% increase in group property assets from FY18 to R138.7bn Group LTV 35.9% vs. 35.2% FY18 and interest cover of 3.7x consistent with FY18 0.5% increase in gr
Slide 7: Financial Results
GROWTFPOINT (| FINANCIAL RESULTS
Slide 8: Consolidated Distribution Calculation
CONSOLIDATED DISTRIBUTION CALCULATION HY19 HY18 INCREASE/ Rm Rm (DECREASE) Gross property income 5 724 5 487 4.3% RSA (1) 4 316 4 188 3.1% GOZ 1 408 1 299 8.4% Property expenses (1 297) (1 192) 8.8% RSA (1 089) (1 006) 8.3% GOZ (208) (186) 11.8% Net property income 4 427 4 295 3.1% Other operating e
Slide 9: Distributable Income Growth Boosted by Offshore Investments
DISTRIBUTABLE INCOME GROWTH BOOSTED BY OFFSHORE INVESTMENTS HY19 Distributable Income Growth RSA (2.1%) Trading & Development 1.5% V&A Waterfront 1.2% GOZ 2.9% GWI 1.5% GPRE 0.9% 5.9% 9
Slide 10: Consolidated Balance Sheet (Extracts)
CONSOLIDATED BALANCE SHEET (EXTRACTS) HY19-FY18 HY19 FY18 HY18 INCREASE/ Rm Rm Rm (DECREASE) Property portfolio 115 531 112 358 111 305 2.8% RSA(1) 77 179 78 765 80 057 (2.0%) GOZ(2) 38 352 33 593 31 248 14.2% Equity Investments 15 306 15 096 12 142 1.4% 50.00% Investment in V&A Waterfront 7 536 7 5
Slide 11: Group Investments
GROWTFPOINT @ GROUP INVESTMENTS
Slide 12: Group Investments: V&A Waterfront
GROUP INVESTMENTS V&A WATERFRONT
Slide 13: V&A Waterfront
V&A WATERFRONT Property Fundamentals ▪ Strong demand for premier office space from blue chip corporates. − Office vacancies low at 2.8%. − Inforce escalations and renewal growth are well within benchmark comparatives. ▪ Retail sales declined by 3.0% on a rolling 12 month period with trading densitie
Slide 14: V&A Waterfront: Completed Developments
Completed Developments ▪ Battery Park opened in September 2018 and provides the public with 3 acres of urban V&A park and green space; it includes 12 200 parking bays to support the canal district. WATERFRONT ▪ Dock road Junction at the City entrance to the V&A is nearing completion and is fully let
Slide 15: Group Investments: GOZ
GROWTFPOINT (| e GROUP INVESTMENTS GOZ
Slide 16: GOZ
Shareholder Return ▪ Strong track record of growth in assets, profit and shareholder returns. ▪ 3.6% increase in dividend per share over HY18 to 11.4cps. ▪ 5.3% increase from FY18 in net tangible asset value per share to AUD3.36. GOZ Capital Management ▪ AUD135m successful rights offer to partially
Slide 17: GOZ: Developments and Property Fundamentals
Developments ▪ AUD150m construction of 19 300m² Botanicca 3 office development in Richmond, VIC. ▪ AUD57m expansion of Woolworths Distribution Centre in Gepps Cross, SA. Property Fundamentals GOZ ▪ 69% office and 31% industrial. ▪ Office and Industrial remain favoured property sectors in Australia.
Slide 18: Group Investments: GWI & GPRE
GROWTFPOINT (| o GROUP INVESTMENTS GWI & GPRE
Slide 19: GWI & GPRE: Portfolio Update
Portfolio Update ▪ Poland and Romania have attractive macro-economic and property fundamentals. ▪ Leading office landlord in the CEE region with a portfolio of EUR2.5bn in Poland and Romania. ▪ Modern assets with excellent environmental credentials. ▪ Prime locations in key cities. ▪ Established blu
Slide 20: GWI & GPRE: Romania Developments
Romania Developments ▪ Romanian development pipeline: − Completion of c. 40 000m² Renault Bucharest Connected. − Globalworth Campus T3 – 34 800m² office development in Bucharest’s New CBD. − Globalworth Square – 26 400m² office development in Bucharest’s New CBD. − 17 700m² logistics project in GWI’
Slide 21: RSA Portfolio Update
GROWTEPOINT (| | Oa ill RSA PORTFOLIO UPDATE
Slide 22: RSA Salient Features
RSA SALIENT FEATURES Over 670 000m² of space 67.7% renewal success rate vs. let in HY19 66.6% at FY18 35.9% LTV vs. 35.4% FY18 and Vacancies of 6.5% vs. 5.4% interest cover remained constant at FY18 at 3.6x -4.4% renewal growth rate vs. 29.1% total expense ratio vs. -2.8% at FY18 27.5% FY18 R1.2bn o
Slide 23: South Africa: Retail
Vacancies 3.3% vs. 3.6% at FY18 with the core vacancy at 2.4% Retail Renewal success rate 85.0% vs. 81.8% at FY18 Trading density growth of 1.5% in SOUTH line with what retailers are reporting Renewal growth rate -3.3% vs. AFRICA -3.1% at FY18 Continued pressure on vacancies, Escalations: escalation
Slide 24: South Africa: Edcon Update
Edcon Update No rental reductions granted SOUTH 119 437m² space as of HY18 to Edcon AFRICA reduced to 109 802m² at HY19 Approximately R110m equity Combination of non-renewals by investment to be made Edcon and Growthpoint deciding not to renew To be funded by debt resulting in c. R10.5m Expect to fu
Slide 25: South Africa: Office
SOUTH AFRICA Office Vacancies 10.2% vs. 8.6% at FY18 Lack of confidence amongst tenants and it is taking them longer to commit Renewal success rate 62.6% vs. 54.5% at FY18 Upward pressure on vacancies for FY19 Focus on retaining clients and Renewal growth rate -8.9% vs. -2.2% at FY18 filling vacant
Slide 26: South Africa: Industrial
SOUTH AFRICA Industrial Vacancies 5.7% vs 4.0% at FY18 The operating environment is tough with Renewal success rate 63.7% vs. 68.4% at FY18 KPIs expected to remain under pressure Renewal growth rate 1.5% vs. -3.3% at FY18 Business confidence is low and expected Escalations: to worsen with Eskom load
Slide 27: South Africa: Trading & Development
Trading & Development Own Balance Sheet to the committed value of R2.7bn. Largest projects: SOUTH 144 Oxford Rd Rosebank – c. R1.15bn AFRICA Exxaro Centurion – c. R600m Millroad Industrial Park – c. R200m Wadestone GZI – c. R200m Runway Park – c. R300m Third Party to the committed value of c. R900m.
Slide 28: South Africa: Sustainability
Sustainability SOUTH R9.7m saved from solar 102 Green star rated buildings with AFRICA a GLA of over 1 000 000m² 5 674 tCO2e saved from energy R1.7m total spend on green produced by solar building certifications ESG Reviews by: R12m total spend on ▪ ISS water investments ▪ MSCI ▪ FTSE/JSE RI ▪ FTSE4
Slide 29: South Africa: Corporate Social Investment
Focus on education, skills development and entrepreneurship Corporate Social R8.6m invested, supporting 980 Investment beneficiaries across Gauteng, Property Point marked SOUTH 10 years of impact, supporting North West, Limpopo, Eastern Cape, Western Cape and AFRICA small businesses in the property
Slide 30: Net Property Income Analysis
NET PROPERTY INCOME ANALYSIS HY19 HY18 INCREASE/ Rm Rm (DECREASE) Gross property revenue 4 316 4 188 3.1% Retail 1 675 1 612 3.9% Office 1 873 1 871 0.1% Industrial 719 705 2.0% Trading & Development 49 - 100% Property expenses (1 089) (1 006) 8.3% Retail (441) (420) 5.0% Office (480) (426) 12.7% In
Slide 31: Capital Management
GROWTFPOINT (| nna @ CAPITAL MANAGEMENT
Slide 32: RSA Capital Management
RSA CAPITAL MANAGMENT Total Nominal Debt R35.3bn ▪ R119m net new borrowings. ▪ Corporate Bond issue for R1.1 billion for 3, 5 and 7 years at spreads of 109 to 154 bps. ▪ 43.8% of debt from debt capital markets and 56.2% is traditional bank debt. ▪ 55.3% is unsecured vs. 44.7% secured. Interest rate
Slide 33: Conclusion
GROWTFPOINT (| CONCLUSION
Slide 34: Prospects
South Africa ▪ Incredibly tough operating environment on the back of the depressed macro-economic environment. ▪ Lack of growth drivers. ▪ Property fundamentals are weak and are expected to deteriorate. ▪ Tenants are under pressure with certain industries taking strain. PROSPECTS ▪ RSA portfolio not
Slide 35: Prospects: GOZ and GWI
GOZ ▪ The balance sheet is in excellent shape with substantial debt headroom. ▪ GOZ is well positioned for growth following accretive acquisitions and lowered debt costs. ▪ Evidence of strong shareholder support following recent successful equity raise. ▪ High quality tenants and manageable near-ter
Slide 36: Thank You
GROWTFPOINT (| THANK YOU
Slide 37: Annexures
GROWTFPOINT (| eo ANNEXURES
Slide 38: Annexure Contents
ANNEXURE CONTENTS 01 Company highlights 09 Expense to income ratios (gross)* 02 Growth in tangible assets and market capitalisation 10 RSA diversified borrowings — nominal value 03 GRT forward yield vs. long bond yield & SAPY yield 11 RSA facilities 04 Growth in dividend per share (cents) 12 Loan to
Slide 39: Annexure Contents
ANNEXURE CONTENTS Shares issued & beneficial shareholders 17 holding >2% at HY19 25 Retail overview RSA 18 Key performance indicators RSA 26 Office overview RSA 19 Portfolio overview RSA (excl. V&A) 27 Industrial overview RSA 20 Split of RSA property portfolio 28 GLA & vacancy reconciliation RSA 21
Slide 40: Annexure Contents
ANNEXURE CONTENTS Developments, commitments & non current assets held 33 Distributable income analysis V&A Waterfront (50%) 41 for sale GOZ 34 Net property income analysis V&A Waterfront (50%) 42 Net property income analysis GOZ 35 V&A Waterfront overview 43 GOZ overview 36 GLA & vacancy reconciliat
Slide 41: Company Highlights
ANNEXURE 01: COMPANY HIGHLIGHTS COMPANY HIGHLIGHTS INVESTMENT PROPOSITION ▪ Largest South African primary listed REIT ▪ Sustainable quality of earnings ▪ 21st largest company in the FTSE/JSE Top 40 Index ▪ 15 year track record of uninterrupted dividend growth ▪ Gross market capitalisation R69.2bn (a
Slide 42: Growth in Tangible Assets and Market Capitalisation
ANNEXURE 02: GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION Rbn cents 140 3000 3 000 120 2 594c 2 500 2500 2 330c 100 2 000 2000 80 1 500 1500 60 1000 1 000 40 500 500 20 0 0 0 HY13 FY13 HY14 FY14 HY15 FY15 HY16 FY16 HY17 FY17 HY18 FY18 HY19 Tangible assets (Rbn) Market cap (Rbn) Share price (c
Slide 43: GRT Forward Yield vs. Long Bond Yield & SAPY Yield
ANNEXURE 03: GRT FORWARD YIELD VS. LONG BOND YIELD & SAPY YIELD GRT Forward Yield SA Long Bond Yield SAPY Yield 11% 10% 9.7% 9% 9.0% 8.9% 8% 7% 6% 5% 4% Dec June Dec June Dec June Dec June Dec June Dec June Dec Dec 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 Source: Anchor
Slide 44: Growth in Dividend per Share
ANNEXURE 04: GROWTH IN DIVIDEND PER SHARE (cents) 6.0% 6.5% 6.5% 4.5% 208.6 195.8 183.8 173.4 44.5 107.4 100.8 94.3 Growth 44.5 4.5% 84.4 95.0 101.2 105.8 89.5 FY15 FY16 FY17 FY18 FY19 Interim dividend Special dividend Final dividend 44
Slide 45: Portfolio Overview
ANNEXURE 05: PORTFOLIO OVERVIEW RETAIL OFFICE INDUSTRIAL RSA TOTAL GOZ (1) (3) V&A (1) Number of properties 49 178 220 447 59 1 GLA (m²) 1 382 624 1 728 986 2 240 791 5 352 401 1 038 683 233 596 Vacancy (m²) (5) 45 925 176 393 127 487 349 805 13 429 4 317 Vacancy (%) (5) 3.3 10.2 5.7
Slide 46: Property Investment Activities
ANNEXURE 06: PROPERTY INVESTMENT ACTIVITIES RETAIL OFFICE INDUSTRIAL RSA TOTAL GOZ(1) TOTAL V&A(1) ANNEXURES Rm Rm Rm Rm Rm Rm Rm Opening balance – 1 July 2018 29 878 35 453 13 434 78 765 33 591 112 356 9 141 Purchase price of acquisitions 21,40 - - - - 3 713 3 713 - Selling price of disposals 21,40
Slide 47: Offshore Contribution
ANNEXURE 07: OFFSHORE CONTRIBUTION 31.3% 22.5% Book Value of Property Assets Offshore EBIT Offshore R109 532m R116 798m R125 667m R3 774m R4 131m R4 363m 6.7% 1.4% 59 8 368 0.3% 4.5% 172 3.9% 382 7 739 6.6% 5 596 128 3.1% 3 813 3.5% 751 17.2% 684 16.6% 20 342 17.4% 25 297 20.1% 20 341 18.6% 648 17.2
Slide 48: Expense to Income Ratios (IFRS)
ANNEXURE 08: EXPENSE TO INCOME RATIOS (IFRS) SOUTH AFRICA V&A WATERFRONT GOZ 27.6% 27.5% 29.1% 31.7% 32.5% 33.5% 19.1% 19.3% 19.2% 2.9% 2.9% 3.6% 3.9% 3.6% 3.7% 4.8% 5.1% 4.4% 28.9% 30.6% 28.8% 24.0% 23.8% 25.2% 14.3% 14.2% 14.8% HY18 FY18 HY19 HY18 FY18 HY19 HY18 FY18 HY19 Operating Expense Ratio P
Slide 49: Expense to Income Ratios (Gross)
ANNEXURE 09: EXPENSE TO INCOME RATIOS (GROSS)* SOUTH AFRICA V&A WATERFRONT GOZ 38.6% 38.4% 40.3% 37.2% 38.4% 39.1% 19.7% 20.1% 20.1% 3.3% 2.6% 3.0% 3.3% 3.3% 2.6% 35.6% 35.1% 37.0% 35.1% 36.5% 5.0% 4.4% 34.6% 4.8% 14.9% 15.1% 15.7% HY18 FY18 HY19 HY18 FY18 HY19 HY18 FY18 HY19 Operating Expense Ratio
Slide 50: RSA Diversified Borrowings
ANNEXURE 10: RSA DIVERSIFIED BORROWINGS — NOMINAL VALUE R29 288m R35 152m R35 271m 5 833 6 117 400 Debt capital Debt capital Debt capital market market market 40% Unsecured 43.8% Unsecured 24.7% 6 824 Unsecured 8 233 54.3% 55.3% 9 333 42.6% 5 248 5 036 4 057 1 540 603 2 553 Traditional Traditional b
Slide 51: RSA Facilities
ANNEXURE 11: RSA FACILITIES RSA facilities HY19 FY18 Unutilised committed facilities (Rbn) 5.1 5.8 Weighted average term of liabilities (years) 3.4 3.7 Weighted average term of fixed interest rate profile (years) (Incl. AUD & EUR CCIRS and IRS) 3.8 4.3 Weighted average interest rate (%) 9.1 9.1 Weig
Slide 52: Loan to Value and Interest Cover Ratios
ANNEXURE 12: LOAN TO VALUE AND INTEREST COVER RATIOS 50% SOUTH AFRICA 7 50% GOZ(2) 7 50% GROUP 7 6 6 6 40% 40% 40% 5 5 5 35.4% 35.9% 36.5% 36.2% 35.9% 35.2% 35.9% 33.8% 34.5% 30% 30% 30% 4 4 4 3 3 3 20% 20% 20% 2 2 2 10% 10% 10% 3.4x 3.6x 3.6x 1 3.6x 3.8x 4.1x 1 3.5x 3.7x 3.7x 1 0% 0 0% 0 0% 0 HY18
Slide 53: Loan Exposure per Financier RSA
ANNEXURE 13: LOAN EXPOSURE PER FINANCIER RSA JSE (Corporate Bonds) Investec Absa 2% 26% LibFin 4% Omsfin 6% Euronext (Eurobonds) 17% Standard Bank 13% 15% 15% RMB Nedbank 53
Slide 54: Debt Expiry Profile per Financier RSA
ANNEXURE 14: DEBT EXPIRY PROFILE PER FINANCIER RSA 14% 16% 10% 12% 27% 9% 10% 0% 0% 2% 30% 25% 20% 15% 10% 5% 0% HY20 HY21 HY22 HY23 HY24 HY25 HY26 HY27 HY28 HY29 Absa Investec JSE (Corporate Bonds) Euronext (Eurobonds) LibFin Nedbank Omsfin RMB Standard Bank 54
Slide 55: Fixed Interest Rate Expiry Profile RSA
ANNEXURE 15: FIXED INTEREST RATE EXPIRY PROFILE RSA 15% 6% 11% 13% 16% 22% 8% 3% 2% 2% 2% 25% 20% 15% 10% 5% 0% Floating HY20 HY21 HY22 HY23 HY24 HY25 HY26 HY27 HY28 HY29 55
Slide 56: Wealth Created & Distributed to Stakeholders
ANNEXURE 16: WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS(1) Rm R5 133m R5 454mm R5 811m 6 000 634 10.9% 587 10.8% 516 10.1% 4 500 1 392 24.0% 1 318 24.2% 1 426 27.8% 292 5.0% 268 4.9% 3 000 226 4.4% 2 969 54.4% 3 143 54.1% 2 688 52.4% 1 500 277 5.3% 312 5.7% 350 6.0% 0 HY17 HY18 HY19 Employees Shar
Slide 57: Shares Issued & Beneficial Shareholders Holding >2%
ANNEXURE 17: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT HY19 SHARES % HOLDING SHARES HELD Opening balance 1 July 2018 2 970 981 288 Government Employees Pension Fund 13.9 413 095 877 Prudential Portfolio Managers 4.9 145 847 366 Dividend reinvestment (September 2018) - The Vanguard Group
Slide 58: Key Performance Indicators RSA
ANNEXURE 18: KEY PERFORMANCE INDICATORS RSA HY19 FY18 HY18 Vacancies (%) 6.5 5.4 5.2 Total arrears (Rm) 79.0 68.5 76.6 Provision for bad debts (B/S) (Rm) 28.2 27.4 28.9 Bad debts (I/S) (Rm) 4.0 17.3 7.1 Average in force escalations (%) 7.6 7.4 7.7 Renewal success rate (%) 67.7 66.6 61.9 Total lettin
Slide 59: Portfolio Overview RSA (excl. V&A)
ANNEXURE 19: PORTFOLIO OVERVIEW RSA (EXCL.V&A) NET PROPERTY INCOME(1) NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE R3 004m R3 182m R3 178m 463 454 447 R80 057m R78 634m R77 179m 17.1% 18.6% 17.0% 16.2% 17.1% 17.0% 49.0% 49.6% 49.2% 44.7% 45.4% 43.2% 44.7% 44.9% 44.0% 39.3% 39.4% 39.8% 38.3% 37.5% 3
Slide 60: Split of RSA Property Portfolio
ANNEXURE 20: SPLIT OF RSA PROPERTY PORTFOLIO VALUE GLA VALUE GLA 2% 1% 1% 3% 4% 17% 7% 5% 32% 11% 10% 41% 44% 52% 56% 23% 39% 25% 27% Greater JHB Western Cape Kwazulu-Natal Office Retail Industrial Pretoria Eastern Cape North West Other 60
Slide 61: Acquisitions & Disposals RSA
ANNEXURE 21: ACQUISITIONS & DISPOSALS RSA PURCHASE PRICE ACQUISITIONS SECTOR DATE Rm YIELD None - - - - PROFIT/(LOSS) PROFIT/(LOSS) SELLING PRICE ON COST ON BOOK VALUE YIELD DISPOSALS SECTOR DATE Rm Rm Rm % Norkem Mall, Norkem Park, Kempton Park Retail December 2018 108.5 71.9 4.9 10.6 Longbeach Mal
Slide 62: Developments & Capital Expenditure RSA
ANNEXURE 22: DEVELOPMENTS & CAPITAL EXPENDITURE RSA ESTIMATED HY19 DEVELOPMENTS & CAPITAL EXPENDITURE (1) SECTOR COMPLETION DATE Rm Walmer Park Shopping Centre, Walmer, Port Elizabeth Retail June 2019 77.5 Lakeside Mall, Benoni, Johannesburg Retail April 2019 31.4 Festival Mall, Kempton Park, Johann
Slide 63: Commitments RSA
ANNEXURE 23: COMMITMENTS RSA ESTIMATED COMPLETION/ HY19 COMMITMENTS SECTOR TRANSFER DATE Rm Developments(1) 1 702.8 La Lucia Mall, La Lucia, Durban Retail November 2019 63.1 Walmer Park Shopping Centre, Walmer, Port Elizabeth Retail June 2019 55.7 144 Oxford Road, Rosebank Office October 2019 707.9
Slide 64: Non-Current Assets Held for Sale & Trading & Development
ANNEXURE 24: NON-CURRENT ASSETS HELD FOR SALE & FOR TRADING & DEVELOPMENT HY19 PROPERTIES HELD FOR SALE SECTOR Rm Equitable Dev Co, Florida, Roodepoort Industrial 5.3 Dekema, Wadeville, Germiston Industrial 4.7 Total 10.0 HY19 PROPERTIES HELD FOR TRADING & DEVELOPMENT SECTOR Rm Exxaro Corporate Cent
Slide 65: Retail Overview RSA
ANNEXURE 25: RETAIL OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria 2 085 56 333 Edcon Holdings Ltd 109 802 Festival Mall, Kempton Park, Johannesburg 1 723 82 849 The Foschini Group Ltd 59 620 N1 City Mal
Slide 66: Office Overview RSA
ANNEXURE 26: OFFICE OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Discovery (55%), Sandton, Johannesburg 1 858 64 127 Deloitte (South Africa) 47 680 The Woodlands, Woodmead, Johannesburg 1 798 126 045 Discovery Holdings Ltd 65 694 Constantia Office Park, Roode
Slide 67: Industrial Overview RSA
ANNEXURE 27: INDUSTRIAL OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Growthpoint Business Park, Midrand 607 68 701 The Bidvest Group Ltd 59 855 Hilltop Industrial Estate, Elandsfontein, Johannesburg 366 76 283 Adcock Ingram Holdings Ltd 27 280 Montague Busine
Slide 68: GLA & Vacancy Reconciliation RSA
ANNEXURE 28: GLA & VACANCY RECONCILIATION RSA TOTAL GLA VACANT AREA VACANCY m² m² % Balance as at 1 July 2018 5 437 316 295 915 5.4 GLA adjustments 6 488 2 454 Disposals (142 664) (1 402) Acquisitions - - Developments and extensions 51 261 51 261 Leases expired in the period (1) 608 998 Renewals of
Slide 69: Key Performance Indicators V&A Waterfront (50%)
ANNEXURE 29: KEY PERFORMANCE INDICATORS V&A WATERFRONT (50%) HY19 FY18 HY18 Vacancies (%) 1.8 1.8 1.2 Total arrears (Rm) 33.6 34.8 36.4 Provision for bad debts (B/S) (Rm) 9.3 7.6 6.2 Bad debts (I/S) (Rm) - 0.1 - Average in force escalations (%) 7.9 8.4 8.3 Renewal success rate (%) 92.0 92.4 91.9 Tot
Slide 70: Portfolio Overview V&A Waterfront (50%)
ANNEXURE 30: PORTFOLIO OVERVIEW V&A WATERFRONT (50%) NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE R254m R299m R315m R8 660m R9 141m R9 227m 4.7% 4.7% 9.2% 7.7% 8.7% 5.3% 7.7% 7.0% 11.9% 11.9% 9.4% 20.1% 21.9% 10.6% 18.1% 24.0% 24.2% 26.0% 23.7% 23.2% 22.1% 45.7% 51.7% 51.5% 47.5% 51.1% 50.4% HY17 HY
Slide 71: Split of V&A Waterfront Property Portfolio
ANNEXURE 31: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO PROPERTY PORTFOLIO PROPERTY PORTFOLIO NET PROPERTY DEVELOPED VS. BY VALUE BY GLA INCOME UNDEVELOPED BY VALUE 5% 9% 5% 8% 21% 24% 12% 22% 46% 51% 23% 32% 24% 23% 95% Retail Office Hotel & Residential Marine & Industrial Bulk Developed Undevelope
Slide 72: Developments & Commitments V&A Waterfront (50%)
ANNEXURE 32: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%) ESTIMATED HY19 SECTOR COMPLETION DATE Rm DEVELOPMENTS & CAPITAL EXPENDITURE (1) Dock Road Junction Office July 2019 12.0 Battery Parkade Office October 2018 11.0 Woolworths Extension Retail September 2019 8.0 Other below R5m Various Variou
Slide 73: Distributable Income Analysis V&A Waterfront (50%)
ANNEXURE 33: DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%) HY19 HY18 INCREASE/ Rm Rm (DECREASE) Gross property revenue 454 420 8.1% Property related 420 401 Radisson Red Hotel 34 19 Property expenses (139) (121) 14.9% Property related (117) (110) Radisson Red Hotel (22) (11) Net property income
Slide 74: Net Property Income Analysis V&A Waterfront (50%)
ANNEXURE 34: NET PROPERTY INCOME ANALYSIS V&A WATERFRONT (50%) HY19 HY18 INCREASE/ Rm Rm (DECREASE) Gross property revenue 454 420 8.1% Property related 420 401 Radisson Red Hotel 34 19 Property expenses (139) (121) 14.9% Property related (117) (110) Radisson Red Hotel (22) (11) Net property income
Slide 75: V&A Waterfront Overview
ANNEXURE 35: V&A WATERFRONT OVERVIEW GLA(1) LEASE EXPIRY (% OF GLA) TOP 10 TENANTS (100%) m² Vacant 2 Allan Gray (Pty) Ltd 20 357 By HY20 9 Nedbank Group Ltd 26 551 By HY21 4 Legacy Hotels 16 226 By HY22 13 By HY23 10 Edcon Holdings Ltd 6 917 By HY24 14 Tourvest Holdings Ltd 2 667 HY25 and beyond 48
Slide 76: GLA & Vacancy Reconciliation V&A Waterfront (50%)
ANNEXURE 36: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%) TOTAL GLA VACANT AREA VACANCY m2 m2 % Balance as at 1 July 2018 231 172 4 208 1.8 GLA adjustments 323 393 Developments and extensions 2 101 2 101 Leases expired in the period (1) 25 828 Renewals of expired leases (2) (23 759) New letting
Slide 77: Key Performance Indicators GOZ
ANNEXURE 37: KEY PERFORMANCE INDICATORS GOZ HY19 FY18 HY18 Vacancies (%) (1) 1.5 2.0 2.1 Total arrears (Rm) 7.6 8.5 7.9 Provision for bad debts (B/S) (Rm) - - - Renewal success rate (%) 85.1 51.2 35.1 Total letting success rate (%) 56.0 52.6 38.5 Weighted average renewal growth (%) (2) (10.9) (3.6)
Slide 78: Portfolio Overview GOZ
ANNEXURE 38: PORTFOLIO OVERVIEW GOZ NUMBER OF PROPERTIES NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE NUMBER OF PROPERTIES R1 071m R1 113m R1 200m R31 248m R33 591m R38 352m 56 57 59 AUD/ZAR AUD/ZAR 1400.00 10.6 45 00 0.00 10.2 10.16 10.55 10.6 10.12 10.1 40 00 0.00 1200.00 10.5 35 00 0.00 10.0 1000
Slide 79: Split of GOZ Property Portfolio
ANNEXURE 39: SPLIT OF GOZ PROPERTY PORTFOLIO VALUE (AUD) GLA VALUE GLA 1% 1% 2% 4% 6% 12% 8% 27% 31% 31% 12% 40% 24% 69% 14% 69% 30% 19% Victoria Queensland New South Wales Western Australia Office Industrial South Australia ACT Tasmania 79
Slide 80: Acquisitions & Disposals GOZ
ANNEXURE 40: ACQUISITIONS & DISPOSALS GOZ HY19 HY19 ACQUISITIONS (1) SECTOR DATE Rm AUDm 836 Wellington Street, West Perth, WA Office October 2018 1 004.6 91.3 100 Skyring Terrace, Newstead, QLD Office December 2018 2 707.9 250.0 Total 3 712.5 341.3 DISPOSALS None - - - - Total - - 1. AUD amount exc
Slide 81: Developments, Commitments & Non Current Assets Held for Sale GOZ
ANNEXURE 41: DEVELOPMENTS, COMMITMENTS & NON CURRENT ASSETS HELD FOR SALE GOZ ESTIMATED HY19 HY19 DEVELOPMENT & CAPITAL EXPENDITURE SECTOR COMPLETION DATE Rm AUDm 5 Viola Place, Brisbane Airport, QLD Industrial July 2018 16.1 1.6 Buildings 3, 572-576 Swan Street, Richmond, VIC Office Second half of
Slide 82: Net Property Income Analysis GOZ
ANNEXURE 42: NET PROPERTY INCOME ANALYSIS GOZ HY19 HY18 INCREASE / AUDm AUDm (DECREASE) Gross property revenue 133.0 129.0 3.1% Property expenses (21.8) (19.6) 11.2% Net property income 111.2 109.4 1.6% Adjustments (3.6) (3.7) Acquisitions (3.6) (0.8) Disposals - (2.5) Developments - (0.4) Adjusted
Slide 83: GOZ Overview
ANNEXURE 43: GOZ OVERVIEW FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² 1 Charles Street, Parramatta, NSW Office 3 503 32 356 Woolworths 282 041 100 Skyring Terrace, Newstead, QLD Office 2 531 24 665 NSW Police Department 32 356 70 Distribution Street, Larapinta, QLD Indus
Slide 84: GLA & Vacancy Reconciliation GOZ
ANNEXURE 44: GLA & VACANCY RECONCILIATION GOZ TOTAL GLA VACANCY(1) m2 % Balance as at 1 July 2018 1 003 444 2.0 GLA adjustments (1 398) Disposals - Acquisitions, developments and extensions 36 637 Balance as at 31 December 2018 1 038 683 1.5 1. Vacancy ratio is based on income and not GLA (when comp
Slide 85: Thank You
GROWTFPOINT (| THANK YOU
Growthpoint Properties — H1 2019 Earnings Presentation on 6ix