Slide 1: Pre-Close Investor Presentation HY2024
HY 2024 PRE-CLOSE INVESTOR PRESENTATION FOR THE INTERIM PERIOD ENDING 31 AUGUST 2023 PRESENTATION: 29 AUGUST 2023
Slide 2: Table of Contents
Contents Table of Contents 01. ENVIRONMENTAL UPDATE 02. SPEAR OPERATIONAL UPDATE 03. HY2024 SALIENT DETAILS — YTD JULY 2023 04. SECTORAL PERFORMANCE — HY2024 05. OUTLOOK 06. GUIDANCE 07. QUESTIONS PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 2
Slide 3: Environmental Update
01 Environmental Update EMAIL QUESTIONS TO INFO@SPEARPROP.CO.ZA PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 3
Slide 4: Environmental Update
01. Environmental Update Environmental Update The Mission To be the leading Western Cape-focused REIT and to consistently grow our distribution per share ahead of inflation and to operate within the top quartile of our peer group. HY2024 Operating environment HY2024 operating conditions Operating co
Slide 5: Spear Operational Update
02 Spear Operational Update PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 5
Slide 6: Spear Operational Update
02. Spear Operational Update Spear Operational Update YTD July 2023 Operational update HY2024 Operational Focus Areas: Status Quo: Commercial Commercial vacancy Improved lease conversions with No.1 Waterhouse and Bloemhof Vacancy creep mitigation fully let during HY2024 Vacancy Cost creep impact and
Slide 7: HY2024 Salient Details
03 HY2024 Salient Details YTD JULY 2023 PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 7
Slide 8: Portfolio Snapshot
03. HY2024 Salient Details — YTD July 2023 Portfolio Snapshot 28 ASSETS NUMBER OF PROPERTIES R4.26BN 4.98% R156M R10 255/M2 PORTFOLIO PORTFOLIO AVERAGE AVERAGE PROPERTY VALUE VALUE INCREASE PROPERTY VALUE VALUATION FY2023 7.4% LETTING AVERAGE IN-FORCE ESCALATIONS 426 588M2 93.37% 27 MONTHS R104.21/M
Slide 9: Financial Snapshot
03. HY2024 Salient Details — YTD July 2023 Financial Snapshot DISTRIBUTION 93% - 95% 43.37% 5.99% PROPOSED SA REIT COST-TO- SA REIT ADMIN PAYOUT RATIO INCOME RATIO COST-TO-INCOME TANGIBLE NET ASSET VALUE (TNAV) R11.42 TNAV 0.52% DECREASE R11.47 FROM FY2023 FY2023 DEBT (AS AT 31 JULY 2023) 40.49% LTV
Slide 10: Total Collections
03. HY2024 Salient Details — YTD July 2023 Total Collections (as at 21 August 2023) 98% R288 266 R276 771 96.01% BILLED (R'000) COLLECTED (R'000) COLLECTED TO BILLED HY2024 collected vs 92% billed per Collections include billings up to August 2023 sector Collections have been in line with management
Slide 11: Letting Activity
03. HY2024 Salient Details — YTD July 2023 Letting Activity YTD FY2024 Expiries and Gross rental at Average gross Renewals/ Gross new Average gross Rental vacated expiry expiry rental New lets rental new rental reversion GLA m² R'000 R/m² GLA m² R'000 R/m² % Commercial 9 934 1 494 150.42 11 160 1 56
Slide 12: Balance Sheet and Funding Update
03. HY2024 Salient Details — YTD July 2023 Balance Sheet and Funding Update Covenants JULY 2023 FY2023 COVENANTS YTD JULY 2023 WEIGHTED AVERAGE 24 30 VARIABLE EXPIRY MONTHS MONTHS LTV 50% 40.49%* WEIGHTED AVERAGE FIXED EXPIRY 12 MONTHS 16 MONTHS YTD JULY FY2023 WEIGHTED AVERAGE 9.35% 8.66% INTEREST
Slide 13: Sectoral Performance
04 Sectoral Performance HY2024 PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 13
Slide 14: Sectoral Performance - HY2024
04. Sectoral Performance — HY2024 Sectoral Performance - HY2024 Operating environment remains tough amid macroeconomic headwinds RETAIL 48 951M2 GLA COMMERCIAL 131 923M2 GLA INDUSTRIAL 245 714M2 GLA Trading has been consistent within the Offices: Progress made in vacancy contraction Strong trading d
Slide 15: Sectoral Performance - HY2024
04. Sectoral Performance — HY2024 Sectoral Performance - HY2024 GENERAL BUSINESS AND PORTFOLIO UPDATE Operating environment remains challenging Despite trading environment the core portfolio is trading well Office portfolio in recovery with numerous new leases concluded Ongoing implementation and ro
Slide 16: Outlook
05 Outlook PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 16
Slide 17: Outlook
05. Outlook Outlook Amid extremely tough trading conditions, Spear’s Western Cape-only portfolio remains well placed to benefit from a shift in real estate fundamentals geographically along with the continued tailwinds created by the effects of semigration and good governance Material cost creep rem
Slide 18: Outlook (continued)
05. Outlook Outlook (continued) Spear’s investment bias will remain towards the industrial sub- sector (logistics, urban logistics and multi-let industrial) and retail sub sector (convenience and destination retail) with potential data centre opportunities being explored Management’s focused three-p
Slide 19: Guidance
06 Guidance PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 19
Slide 20: Guidance
06. Guidance Guidance Assets The macroeconomic climate remains challenging as the longer-term impact of loadshedding has not yet been fully felt by South African business Consistent The negative impact of cost creep across the board will place further pressure on business margins, cost of occupancie
Slide 21: Questions?
10 Questions? Email questions to INFO@SPEARPROP.CO.ZA Live Q&A after presentation spearreitlimited Spear REIT Limited Spear REIT Limited @SpearREIT PRE-CLOSE INVESTOR PRESENTATION / INTERIM PERIOD 31 AUGUST 2023 21