Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — H1 FY2021 Earnings Presentation
138 slides from Vukile Property Fund's earnings presentation, November 2020
Slide 1: H1 FY2021 Interim Results Presentation
H1 FY2021 30 September 2020 INTERIM RESULTS PRESENTATION
Slide 2: Agenda
INTERIM RESULTS 30 SEPTEMBER 2020 AGENDA 1 INTRODUCTION Laurence Rapp 2 FINANCIAL PERFORMANCE, DEBT AND TREASURY Laurence Cohen 3 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW AND TRADING UPDATE Itumeleng Mothibeli 4 CASTELLANA PROPERTIES OVERVIEW AND TRADING UPDATE Alfonso Brunet 5 STRATEGIC PLANS AND
Slide 3: Introduction
INTRODUCTION Laurence Rapp 3
Slide 4: Profile
INTRODUCTION / INTERIM RESULTS 30 SEPTEMBER 2020 1 PROFILE WHO WE ARE ˃ High quality, low risk, Retail REIT operating in Southern Africa and Spain ˃ Significant geographic diversification with 54% of assets located in Spain ˃ Strong operational focus with a core competence in active asset management
Slide 5: Group overview – property assets of R35.7bn
INTRODUCTION / INTERIM RESULTS 30 SEPTEMBER 2020 1 GROUP OVERVIEW – PROPERTY ASSETS OF R35.7bn WELL DIVERSIFIED EXPOSURE ACROSS MACRO ECONOMIC DRIVERS SPAIN SOUTHERN AFRICA R19.5bn R16.2bn 54% of assets 46% of assets Direct property portfolio R15.6bn Fairvest R425m Arrowhead R149m * Vukile’s investm
Slide 6: Highlights
INTRODUCTION / INTERIM RESULTS 30 SEPTEMBER 2020 1 HIGHLIGHTS SOLID OPERATING PLATFORM PROVIDES THE BASE OFF WHICH TO TACKLE THE COVID-19 CRISIS Sustained performance in tough SA trading Spanish portfolio holding up very well environment ˃ Vacancies reduced to 1.5% ˃ Retail vacancies well contained
Slide 7: Analysing these results
INTRODUCTION / INTERIM RESULTS 30 SEPTEMBER 2020 1 ANALYSING THESE RESULTS IN THE CONTEXT OF COVID-19 AND BEING A MARCH YEAR-END ˃ For the year ended 31 March 2020, the COVID-19 pandemic ˃ Did not impact distributable earnings, but ˃ Did negatively affect the forward-looking valuations ˃ Majority im
Slide 8: Valuations
INTRODUCTION / INTERIM RESULTS 30 SEPTEMBER 2020 1 VALUATIONS ˃ Main valuations impact felt in the FY2020 results Year-on-year Sep 19 to Mar 20 Mar 20 to Sep 20 Sep 19 to Sep 20 Southern Africa (4.3%) 0.3% (4.0%) Spain (2.4%) (1.0%) (3.4%) Total portfolio (3.2%) (0.4%) (3.7%) ˃ Most pain taken in NO
Slide 9: Financial Performance, Debt and Treasury
2 FINANCIAL PERFORMANCE, DEBT AND TREASURY Laurence Cohen 9
Slide 10: Distributable earnings (Rm)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 DISTRIBUTABLE EARNINGS (Rm) SIGNIFICANT IMPACT OF COVID-19 ON DISTRIBUTABLE EARNINGS HALF-YEAR DISTRIBUTABLE EARNINGS - Rm 847 643 556 446 467 405 334 277 269 193 186 HY11 HY12 HY13 HY14 HY15 HY16 HY17 HY18 HY19 HY20 HY21
Slide 11: Distributable earnings bridge (Rm)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 DISTRIBUTABLE EARNINGS BRIDGE (Rm) MAJORITY OF COVID-19 IMPACT IN H1 FY2021 ( 101 ) 847 ( 180 ) ( 52 ) ( 65 ) (3) 446 30 September 2019 Net property Income from Income Net Other 30 September 2020 revenue: Castellana from
Slide 12: Cash flow bridge (Rm)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 CASH FLOW BRIDGE (Rm) PROCEEDS FROM THE SALE OF ATLANTIC LEAF UTILISED TO REDUCE BORROWINGS > Cash balances in excess of R1.3bn 1 103 Repayment of debt (primarily from sale of assets) 615 Dividend paid to Castellana minor
Slide 13: NAV bridge (R)
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 NAV BRIDGE (R) NAV PER SHARE REDUCED TO R17.24 1.50 Includes final 0.23 dividend 0.78 for FY2020 (1.64) Sale of (0.53) investment in 18.34 Atlantic Leaf (0.56) and Arrowhead (0.26) (0.19) A-Shares (0.43) 17.24 NAV Net Add
Slide 14: Debt and balance sheet strategy
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 DEBT AND BALANCE SHEET STRATEGY SIGNIFICANT PROGRESS IN STRENGTHENING BALANCE SHEET AND RISK METRICS > COVID-19 crisis used as an opportunity to engage extensively with all bank funders, both in SA and Spain > Debt reduce
Slide 15: Debt and balance sheet strategy
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 DEBT AND BALANCE SHEET STRATEGY SIGNIFICANT PROGRESS IN STRENGTHENING BALANCE SHEET AND RISK METRICS > €91m and £14m (R2.1bn equivalent) of foreign denominated debt repaid or converted into ZAR debt, reducing the impact o
Slide 16: Segmental loan-to-value and interest cover ratios
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 SEGMENTAL LOAN-TO-VALUE AND INTEREST COVER RATIOS COMFORTABLE HEADROOM ACROSS ALL METRICS FOR BOTH VUKILE AND CASTELLANA > Strong cash flow compared with net interest cost > Group interest cover ratio of 3.7 times, after
Slide 17: Group loan-to-value bridge
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 GROUP LOAN-TO-VALUE BRIDGE DEBT REPAYMENTS HAVE RESULTED IN A 1.8% REDUCTION IN LTV 26% increase in Fairvest share price Debt reduction primarily as a result of the sale of Atlantic Leaf 17
Slide 18: Composition of group balance sheet
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 COMPOSITION OF GROUP BALANCE SHEET MATCHING DEBT WITH PROPERTY ASSETS - BY GEOGRAPHY AND CURRENCY NON-RECOURSE TO VUKILE Castellana Vukile Company EUR assets (R20.3bn) to Total Company assets (R24.4bn) debt (R9.7bn) Ratio
Slide 19: Key debt and hedging metrics
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 KEY DEBT AND HEDGING METRICS STRONG LIQUIDITY POSITION > Undrawn facilities increased to R2.3bn in the interim period September March September Internal policy 2020 2020 2019 at Group level Interest-bearing debt hedged 79
Slide 20: Analysis of group loan expiry profile
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 ANALYSIS OF GROUP LOAN EXPIRY PROFILE LOW RISK EXPIRY PROFILE > R2.1bn of GBP and EUR debt was repaid or converted into ZAR facilities > R578m of corporate bonds were repaid > Sufficient undrawn facilities to repay DCM ma
Slide 21: Undrawn facilities
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 UNDRAWN FACILITIES UNDRAWN BANK FACILITIES INCREASED TO R2.3 bn (FROM R1.1 bn AT 31 MARCH 2020) Facility amount Amount drawn Undrawn 000 000 000 ABSA multicurrency revolving credit facility (ZAR portion) R648 162 R250 000
Slide 22: Debt expiring in FY2022
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 DEBT EXPIRING IN FY2022 LOW RISK EXPIRY PROFILE > 100% of all debt expiring in FY2021 has been repaid or extended > 26% of debt expiring in FY2022 has been repaid or extended Amount Drawn Maturity Date Comments 000 Corpor
Slide 23: Southern African Retail Portfolio Overview and Trading Update
3 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW AND TRADING UPDATE Itumeleng Mothibeli 23
Slide 24: Highlights and operating environment
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 HIGHLIGHTS SUSTAINED PERFORMANCE IN TOUGH TRADING ENVIRONMENT > Continued tough operating environment, favouring non-discretionary essential goods > Too early to glean definite changes in psychographic shopper behaviour, but str
Slide 25: Direct Southern African retail portfolio
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 DIRECT SOUTHERN AFRICAN RETAIL PORTFOLIO KEY RETAIL PORTFOLIO METRICS Portfolio Total number GLA Operational PV installed KEY FACTS Value of assets Capex forecast 15 plants R14.6bn 45 892 686m2 R74m 9.9MW Average Value density A
Slide 26: Portfolio composition
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 PORTFOLIO COMPOSITION 82% OF PORTFOLIO IN DEFENSIVE RURAL, TOWNSHIP AND VALUE CENTRE ASSETS Township & Rural Value centres Urban Commuter Value R6.3bn R4.1bn R1.7bn R2.6bn Number of properties 16 16 4 9 1 3 1 1% 4% 1% GLA 364 66
Slide 27: Tenant affordability
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 TENANT AFFORDABILITY CONSISTENTLY SOUND PORTFOLIO METRICS RETAIL VACANCY PROFILE BY GLA RETAIL AVERAGE BASE RENTALS R/m² (EXCL. RECOVERIES) 143.86 141.43 134.78 130.44 3.9% 3.8% 122.88 3.5% 114.61 3.0% 3.0% 2.9% 2016 2017 2018 2
Slide 28: Tenant exposure
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 TENANT EXPOSURE WELL DIVERSIFIED BLUE CHIP TENANT MIX 31% OF RENT FROM ESSENTIAL SERVICES 57% OF RENT FROM TOP 20 TENANTS Pepkor - 8% Grocery/ Supermarket - 18% Foschini - 7% Pick n Pay - 6% Banking - 8% Shoprite - 6% Pharmacies
Slide 29: Collections
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 COLLECTIONS COLLECTED R1.048 bn (95%) of R1.098 bn BILLED (NET OF R133m COVID CONCESSIONS GRANTED c. 1 MONTH’S RENT) COVID-19 concession as percentage of Billed Collected monthly rent National tenants (98%) 77% Mid-tier tenants
Slide 30: Collections
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 COLLECTIONS URBAN CENTRES AND SMME’S UNDER PRESSURE COVID-19 COVID-19 concession as concession as Township and Commuter centres Collected R508m of R535m (95%) % of monthly Rural centres Collected R265m of R273m (97%) % of monthl
Slide 31: Vacancy movement
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 VACANCY MOVEMENT 8 738m² OF VACANT SPACE HAS BEEN LET WHEN CONTRASTED WITH 9 044m² OF SPACE FROM TENANTS WHO VACATED (1.0% OF TOTAL RETAIL GLA) Vacated New leasing Grocery/ Supermarket 1 531m² Fashion 1 245m² 2 253m² Restaurants
Slide 32: Retail category performance
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 RETAIL CATEGORY PERFORMANCE ALTHOUGH AVERAGE TRADING DENSITIES SHOWED GROWTH OF 1.3% ANNUAL TURNOVER CONTRACTED BY 4.7% Grocery/ Supermarket Pharmacies Density 5.4% Density 9.3% Turnover 5.6% Turnover 10.5% Year-on-year turnover
Slide 33: Trading densities
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 TRADING DENSITIES ESSENTIAL SERVICES SHOWED POSITIVE GROWTH WHILE DISCRETIONARY CATEGORIES LAG IN OVERALL PERFORMANCE Average annual trading density Annual trading density growth Rent-to-sales September 2019 September 2020 R29 1
Slide 34: Footfall
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 FOOTFALL RECOVERED TO 86% RELATIVE TO PRIOR YEAR 2019 2020 34
Slide 35: Footfall
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 FOOTFALL RURAL CENTRES RECOVERED TO 90% RELATIVE TO PRIOR YEAR KEY INSIGHTS TOWNSHIP AND COMMUTER > Three centres (Hammarsdale Junction, Atlantis City Shopping Centre and Mdantsane City Shopping Centre) have recovered to more th
Slide 36: Valuations: total portfolio
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 VALUATIONS: TOTAL PORTFOLIO 58 PROPERTIES VALUED AT R15.6 bn SHOWING VALUE GROWTH OF 0.3% WITH AN UNDEMANDING VALUE DENSITY OF R16 316 / m² 757 (247) (156) (331) 15 537 17 15 576 (1.6%) R’m 4.9% (1.0%) (2.1%) 0.1% Value Organic
Slide 37: Alternative income management
SOUTHERN AFRICAN APPENDICES / INTERIM RETAIL RESULTS PORTFOLIO 30 SEPTEMBER / INTERIM 2020 RESULTS 30 SEPTEMBER 2020 3 ALTERNATIVE INCOME MANAGEMENT SIGNIFICANT MILESTONES ACHIEVED WITH WIFI PLATFORM – MULTI-MALL SHOPPER APP LAUNCHED Fibre to the business (FTTB) project – Monthly recurring revenue b
Slide 38: Connect Waya Waya
SOUTHERN AFRICAN APPENDICES / INTERIM RETAIL RESULTS PORTFOLIO 30 SEPTEMBER / INTERIM 2020 RESULTS 30 SEPTEMBER 2020 3 CONNECT WAYA WAYA 38
Slide 39: Short-term focus areas
SOUTHERN AFRICAN RETAIL PORTFOLIO / INTERIM RESULTS 30 SEPTEMBER 2020 3 SHORT-TERM FOCUS AREAS CONTINUED TIGHT OPERATIONAL FOCUS > Strengthen relationships coming out of COVID-19 with internalised full strength leasing team > Execute a focused renewal strategy in the next six months without changing
Slide 40: Castellana Properties Overview and Trading Update
4 CASTELLANA PROPERTIES OVERVIEW AND TRADING UPDATE Alfonso Brunet 40
Slide 41: COVID-19 in Spain
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 COVID-19 IN SPAIN SPAIN IS FACING A “SECOND WAVE” WITH MORE TESTING AND LESS DEATHS COVID-19 DEATHS CONFIRMED BY THE SPANISH MINISTRY OF HEALTH > Whilst the number of confirmed daily infections are increasing, Spain has State of Al
Slide 42: COVID-19 in Spain
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 COVID-19 IN SPAIN CASTELLANA PORTFOLIO LARGELY SITUATED OUTSIDE OF MOST AFFECTED REGIONS Asset Region Risk ACCUMULATED INCIDENCE (AI) LAST 14 DAYS Vallsur Castilla y León High Parque Principado Asturias Medium Marismas del Polvorín
Slide 43: Government actions
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 GOVERNMENT ACTIONS HISTORIC EUR750 bn EUROPEAN RECOVERY FUND: SPAIN TO RECEIVE UP TO EUR140 bn IN GRANTS AND LOANS OVERALL BUDGET 2021-2027 NET EU BUDGET POSITION VERSUS NET NEXTGEN GRANT POSITION (1) > On 21st July 2020, the Spain
Slide 44: Impact on Spanish economy
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 IMPACT ON SPANISH ECONOMY SHARP CONTRACTION WITH REBOUND EXPECTED IN 2021 > While Spain’s GDP registered a positive rebound in Q3 2020 (+16.7% vs. Q2 2020), outlook for the full year suggests a -13% drop in GDP for 2020. The expect
Slide 45: Direct Spanish portfolio
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 DIRECT SPANISH PORTFOLIO KEY PORTFOLIO METRICS Portfolio Value Total number GLA Retail by value KEY FACTS €994m (-1.0%)(i) of assets (-3.4%)(ii) 18 373 478m² 96.7%(iii) Average asset Average Average exit Total number of VALUATIONS
Slide 46: Leasing activity
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 LEASING ACTIVITY COMMERCIAL PERFORMANCE H1FY21 MAIN BUSINESS KPI´S DURING H1FY21 PORTFOLIO ALMOST FULLY LET 54 €2.6m 30 SEPTEMBER 2020 98.50% LEASES SIGNED NEW RENT SIGNED 31 MARCH 2020 98.30% 26 28 €0.79m €1.83m RENEWALS NEW CONTR
Slide 47: Retail tenant exposure
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 RETAIL TENANT EXPOSURE 92% INTERNATIONAL AND NATIONAL TENANT PROFILE PROVIDING PROTECTION AGAINST THE EFFECTS OF THE PANDEMIC TOP 10 TENANT GROUPS BY RENT TENANT GROUP PROFILE - BY CONTRACTUAL RENT INDITEX 12.5% ZARA 4.5% BERSHKA 1
Slide 48: Collections
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 COLLECTIONS JANUARY TO OCTOBER 2020 > All service charge recoveries have been fully invoiced and collected during H1FY21 > Since reopening, invoicing has increased with collections holding stable STATE OF ALARM 600.00% 5.8 6.0 14 M
Slide 49: Strengthening the retail portfolio metrics in the face of the pandemic
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 STRENGTHENING THE RETAIL PORTFOLIO METRICS IN THE FACE OF THE PANDEMIC AGREEMENTS ON TRACK WITH 90% OF ADDENDUMS … LEADING TO STRENGTHENED TENANT RELATIONSHIPS CLOSED OR UNDER ADVANCED NEGOTIATIONS... AND IMPROVEMENT OF ALL RETAIL
Slide 50: Footfall and sales shopping centres
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 FOOTFALL & SALES SHOPPING CENTRES THE STRENGTH OF THE PORTFOLIO ALLOWS IT TO WITHSTAND THIS UNIQUE AND UNEXPECTED PERIOD MONTHLY FOOTFALL JANUARY - OCTOBER 2020 (1) MONTHLY SALES JANUARY – OCTOBER 2020 (2) JAN FEB MAR APR MAY JUN J
Slide 51: Sales performance per tenant category
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 SALES PERFORMANCE PER TENANT CATEGORY IN OCTOBER 2020, LIKE-FOR-LIKE SALES WERE 95% OF THOSE OF 2019 YTD LIKE-FOR-LIKE SALES - OCTOBER 2019 TO OCTOBER 2020 > Like-for-like sales in October reached EUR32.2m, -5.1% compared to the sa
Slide 52: Repositioning projects summary
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 REPOSITIONING PROJECTS SUMMARY BAHÍA SUR LOS ARCOS EL FARO Additional NOI created €2.25m €1.36m €0.25k New brands 17 16 16 GLA affected 19 327m² 11 242m² 7 398m² GLA signed and committed 94.8% 84.0% 92.0% 52
Slide 53: GRI bridge and breakdown
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 GRI BRIDGE AND BREAKDOWN TEMPORARY COVID-19 AGREEMENTS REACHED TO SUPPORT OUR TENANTS NOT INCLUDING ANY SERVICE CHARGE RELIEF POTENTIAL PORTFOLIO GRI ANNUALISED OVER €66m SHOPPING CENTRES €45.5m 68.5% RETAIL PARKS €18.9m 28.4% OFFI
Slide 54: GAV bridge and breakdown
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 GAV BRIDGE AND BREAKDOWN VALUATIONS PREPARED AT 30 SEPTEMBER 2020 ALREADY REFLECT THE EFFECT OF THE PANDEMIC WITH A TOTAL GAV DECREASE OF 3.4% SINCE 30 SEPTEMBER 2019 GAV at 30 September 2020 excluding COVID-19 effect would amount
Slide 55: Valuations
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 VALUATIONS INDEPENDENT FAIR VALUATIONS IMPACTED BY 3.4% OVER PAST 12 MONTHS DUE TO THE PANDEMIC REMAIN RESILIENT FAIR VALUE BY ASSET CLASS (€m) STABILISED NOI (1) €m 1 028 1 003 994 100 18.24% 20% 916 80 -0.81% -0.56% 0.05% 0% 694
Slide 56: Re-opening strategy 1/3
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 RE-OPENING STRATEGY 1 / 3 FOLLOWING THE GOVERNMENT RECOMMENDED MEASURES AND ENSURING THE SAFEST POSSIBLE SPACES FOR OUR CUSTOMERS… > KEEP SOCIAL DISTANCING WITH WAITING LINES, ONE-WAY SYSTEM > HYDROALCOHOLIC DISPENSERS IN EVERY TOU
Slide 57: Reopening strategy 2/3
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 REOPENING STRATEGY 2 / 3 WE HAVE CREATED EXCITING EVENTS AND POP-UP CONCEPTS OVER THE LAST FEW MONTHS BAHÍA SUR LOS ARCOS GRANAITA II Edition of Bahía En Vivo! Festival in Bahía Sur SC. Far-reaching communication campaign was launc
Slide 58: Reopening strategy 3/3
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 REOPENING STRATEGY 3 / 3 IN CASTELLANA PROPERTIES, WE SUPPORT OUR TENANTS BY MAINTAINING A CLOSE AND DIRECT RELATIONSHIP, FINDING SOLUTIONS THAT BENEFIT BOTH PARTIES OVER THE LONG TERM “Castellana Properties is, without a > Rental
Slide 59: iCAST programme
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 iCAST PROGRAMME CREATING OUR OWN INNOVATION PROGRAMME TO ADAPT SHOPPING CENTRES TO EMERGING CONSUMER NEEDS AND EXCEL AS TRUE OMNICHANNEL SPACES > iCAST is designed to forge a new path in innovation, create added value, spearhead tr
Slide 60: Digital path
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 DIGITAL PATH TECHNOLOGY IS A MEANS, NOT AN END. CASTELLANA PROPERTIES HAS THEREFORE PROMOTED DIFFERENT DIGITISATION INITIATIVES TO IMPROVE CUSTOMER EXPERIENCE ACROSS OUR SHOPPING CENTRES CUSTOMER ANALYTICS TOOL DIGITISATION OF SHOP
Slide 61: Key focus areas going forward
CASTELLANA PROPERTIES OVERVIEW / INTERIM RESULTS 30 SEPTEMBER 2020 4 KEY FOCUS AREAS GOING FORWARD > Business management – keep management focus on Castellana’s income and balance sheet stability > Tenant Relationships - continuing to nurture our tenants to build a new, better relationship to act as
Slide 62: Strategic Plans and Prospects
5 STRATEGIC PLANS AND PROSPECTS Laurence Rapp 62
Slide 63: Update on transactions and strategic initiatives
STRATEGIC PLANS AND PROSPECTS / INTERIM RESULTS 30 SEPTEMBER 2020 5 UPDATE ON TRANSACTIONS AND STRATEGIC INITIATIVES KEY BALANCE SHEET DRIVERS MEREV OPTION ˃ Advanced stage of discussions to extend the option for 3 years ˃ Hoping to finalise terms before end of December ˃ Confident we will reach agr
Slide 64: Where to from here for REITs?
STRATEGIC PLANS AND PROSPECTS / INTERIM RESULTS 30 SEPTEMBER 2020 5 WHERE TO FROM HERE FOR REITS? HOW DO REITS RESPOND TO THE LTV CHALLENGE? > Sector sentiment and strategic options impacted by market focus on LTV ratio as the main risk and valuation metric > Limited balance sheet management strateg
Slide 65: Strategic focus areas
STRATEGIC PLANS AND PROSPECTS / INTERIM RESULTS 30 SEPTEMBER 2020 5 STRATEGIC FOCUS AREAS > Continued drive to embed a singular culture within Vukile and Castellana OUR > Ongoing investment in health and wellness programmes for the team covering both physical and mental wellbeing PEOPLE > People lea
Slide 66: Prospects
STRATEGIC PLANS AND PROSPECTS / INTERIM RESULTS 30 SEPTEMBER 2020 5 PROSPECTS WELL POSITIONED FOR LONG TERM SUSTAINABILITY ˃ The Vukile business remains in very good shape operationally, financially and strategically and is well positioned for long term sustainability ˃ The macro-economic benefits o
Slide 67: Acknowledgements
STRATEGIC PLANS AND PROSPECTS / INTERIM RESULTS 30 SEPTEMBER 2020 5 ACKNOWLEDGEMENTS ˃ Board ˃ Property managers ˃ Service providers ˃ Brokers and developers ˃ Tenants ˃ Investors ˃ Funders ˃ Colleagues ˃ Pay tribute to the memories of the family members of Vukile staff who have passed away over the
Slide 68: Q&A
STRATEGIC PLANS AND PROSPECTS / INTERIM RESULTS 30 SEPTEMBER 2020 5 Q&A 68
Slide 69: Appendix A – Southern African Portfolio
APPENDIX A Southern African Portfolio 69
Slide 70: Portfolio composition
PORTFOLIO COMPOSITION Southern African Portfolio 70
Slide 71: Southern Africa retail footprint
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICA RETAIL FOOTPRINT RETAIL PORTFOLIO PROFILE (TOP 15 PROPERTIES 60% OF PORTFOLIO BY VALUE) 14 11 1 East Rand Mall 9 Nonesi Mall 7% 1 15 2 Pine Crest 10 Meadowdale Mall 6% 6
Slide 72: High quality retail assets
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS EAST RAND MALL PINE CREST PHOENIX PLAZA MALUTI CRESCENT KOLONNADE RETAIL PARK GAV R1 310m R1 099m R 853m R 777m R 598m Region Gauteng KwaZulu-Nat
Slide 73: High quality retail assets
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS (CONT.) DOBSONVILLE MALL GUGULETHU SQUARE MDANTSANE CITY NONESI MALL MEADOWDALE MALL GAV R 578m R 539m R 530m R 495m R 445m Region Gauteng Wester
Slide 74: High quality retail assets
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS (CONT.) DAVEYTON OSHAKATI SHOPPING THAVHANI MALL BLOEMFONTEIN PLAZA RANDBURG SQUARE SHOPPING CENTRE CENTRE GAV R 435m R 426m R 413m R 399m R 391m
Slide 75: Retail tenant exposure
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 RETAIL TENANT EXPOSURE DIRECT SOUTHERN AFRICAN RETAIL PORTFOLIO TENANT PROFILE - BY CONTRACTUAL RENT TOP 10 TENANTS - BY CONTRACTUAL RENT Largest brand exposure 8.4 2.6 Other 2.6 19% 7.0
Slide 76: Retail category exposure
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 RETAIL CATEGORY EXPOSURE WELL DIVERSIFIED MIX OF TENANT CATEGORIES CATEGORY PROFILE BY RENT CATEGORY PROFILE BY GLA 30% Fashion 26% 13% Grocery/ Supermarket 21% 8% Banking 4% 7% Food 5%
Slide 77: Tenant profile across sectors
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 TENANT PROFILE ACROSS SECTORS DEFENSIVE RURAL, TOWNSHIP AND VALUE CENTRE PORTFOLIO KEY TO SUSTAINABLE ROBUST PERFORMANCE TOWNSHIP AND COMMUTER RURAL Essential services 34% Grocery/ Super
Slide 78: HY2021 retail portfolio performance metrics
HY2021 RETAIL PORTFOLIO PERFORMANCE METRICS Southern African Portfolio 78
Slide 79: Retail portfolio trading statistics for top 15 properties
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 RETAIL PORTFOLIO TRADING STATISTICS FOR TOP 15 PROPERTIES CONTINUING TO PROVIDE VERY PROFITABLE CENTRES FOR OUR TENANTS Trading density growth like-for-like 1.4% (4.7%) (0.4%) (5.8%) 1.8
Slide 80: Trading densities
STRATEGIC PLANS AND PROSPECTS / INTERIM RESULTS 30 SEPTEMBER 2020 5 TRADING DENSITIES ESSENTIAL SERVICES CONSISTENTLY SHOWING GROWTH; NON-ESSENTIAL SERVICES OPENED DURING MAY AND JUNE ON THE ROAD TO RECOVERY; RESTAURANTS, ENTERTAINMENT AND HEALTH AND BEAUTY STILL UNDER PRESSURE Essential services op
Slide 81: Rent-to-sales ratio by top 15 properties
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 RENT-TO-SALES RATIO BY TOP 15 PROPERTIES CONTINUING TO PROVIDE VERY PROFITABLE CENTRES FOR OUR TENANTS 12.0% 8.9% 8.9% 7.9% 7.4% 6.8% 6.8% 6.7% 6.2% 5.3% 5.2% 5.2% 5.1% 5.0% 4.5% 4.5% Ea
Slide 82: Tenant affordability
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 TENANT AFFORDABILITY RENT TO SALES HOLDING STEADY ACROSS THE PORTFOLIO THROUGH TOUGH MARKET CONDITIONS Average annual rent-to-sales ratio 9.9% 9.8% 8.9% 8.7% 8.4% 8.2% 6.2% 6.0% 6.0% 6.0
Slide 83: Retail tenant expiry profile
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 RETAIL TENANT EXPIRY PROFILE 42% OF CONTRACTUAL RENT EXPIRING IN FY2024 AND BEYOND (WALE 3.4 YEARS) % of Contractual Rent Cumulative 100 78 58 40 19 21 18 20 22 March 2021 March 2022 Mar
Slide 84: Retail vacancies
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 RETAIL VACANCIES 32 PROPERTIES FULLY LET OR WITH VACANCIES LOWER THAN 1 000m² Fully Let Ga-Kgapane Modjadji Plaza Germiston Meadowdale Mall Giyani Plaza Hammarsdale Junction Makhado Nzhe
Slide 85: Weighted average base rentals R/m²
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 WEIGHTED AVERAGE BASE RENTALS R/m² (EXCLUDING RECOVERIES) SOUTHERN AFRICAN RETAIL PORTFOLIO Durban Phoenix Plaza Boksburg East Rand Mall Durban Workshop Windhoek 269 Independence Avenue
Slide 86: Ratio of net cost to property revenue – retail portfolio
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 RATIO OF NET COST TO PROPERTY REVENUE – RETAIL PORTFOLIO GOOD PROGRESS IN COST CONTAINMENT COVID-19 impact 19.6 18.8 19.3 18.5 18.1 16.9 16.9 16.0 15.8 15.9 15.7 15.7 15.6 15.5 15.1 15.1
Slide 87: Asset management initiatives
ASSET MANAGEMENT INITIATIVES Southern African Portfolio 87
Slide 88: Customer centricity and insights
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 CUSTOMER CENTRICITY AND INSIGHTS DEVELOPING CORE COMPETENCE IN CUSTOMER CENTRICITY TO DRIVE BETTER LEASING DECISIONS AND TENANT MIX OUT OF-MALL 3 primary pillars of customer insights jou
Slide 89: Energy and water management
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 ENERGY AND WATER MANAGEMENT ACHIEVEMENTS Impact on cost-to-income ratio > Electricity contributes 42% to total expenses > 6.5% of the portfolio’s electricity is generated by renewable re
Slide 90: Valuation methodology
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 VALUATION METHODOLOGY SOUTHERN AFRICAN PROPERTY PORTFOLIO Valuations are based on multiple assumptions which involve some subjectivity. The key is consistency in applying the same SCIENC
Slide 91: HY2021 total portfolio performance metrics
HY2021 TOTAL PORTFOLIO PERFORMANCE METRICS Southern African Portfolio 91
Slide 92: Southern African total portfolio composition
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICAN TOTAL PORTFOLIO COMPOSITION TOP 15 ASSETS MAKE UP 60% OF THE TOTAL PORTFOLIO SECTORAL PROFILE - BY VALUE SECTORAL PROFILE - BY GLA By Value By GLA Top 15 94% Retail 88%
Slide 93: Southern African total portfolio tenant exposure
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICAN TOTAL PORTFOLIO TENANT EXPOSURE LOW RISK WITH 79% NATIONAL TENANTS TENANT PROFILE - BY CONTRACTUAL RENT TENANT PROFILE - BY OCCUPIED GLA Other Other 21% 22% Top 10 Diver
Slide 94: Southern African total portfolio tenant expiry profile
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICAN TOTAL PORTFOLIO TENANT EXPIRY PROFILE 42% OF CONTRACTUAL RENT EXPIRING IN FY2024 AND BEYOND (WALE 3.4 YEARS) % OF CONTRACTUAL RENT % of Contractual Rent Cumulative 100 7
Slide 95: Southern African total portfolio vacancy profile
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICAN TOTAL PORTFOLIO VACANCY PROFILE VACANCY CONTAINED AT 3.4% OF GLA 13.1 8.7 Vacancy 6.6 6.2 4.3 3.4% 2.9 3.0 3.5 3.4 3.4 of GLA Retail Industrial Offices Residential Total
Slide 96: Contracted rental escalation profile
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICAN TOTAL PORTFOLIO CONTRACTED RENTAL ESCALATION PROFILE RENTAL ESCALATIONS STILL AHEAD OF INFLATION 7.8 7.6 7.6 7.5 7.4 7.0 7.0 6.9 6.9 6.8 6.8 6.7 6.6 - Retail Industrial
Slide 97: Weighted average base rentals R/m²
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICAN TOTAL PORTFOLIO WEIGHTED AVERAGE BASE RENTALS – R/m² EXCLUDING RECOVERIES 177.30 171.87 143.86 142.94 141.43 141.40 137.22 134.98 111.60 106.52 61.41 62.18 Retail Indust
Slide 98: Ratio of cost to property revenue
STRATEGIC PLANS APPENDICES / INTERIM AND PROSPECTS RESULTS 30 /SEPTEMBER INTERIM RESULTS 2020 30 SEPTEMBER 2020 5 SOUTHERN AFRICAN TOTAL PORTFOLIO – RATIO OF COST TO PROPERTY REVENUE NET COST TO PROPERTY REVENUE CONTAINING COST RATIOS 18.0 17.9 17.7 19.4 18.4 16.4 16.2 15.4 15.4 15.2 16.1 15.0 15.5
Slide 99: Appendix B – Spanish Portfolio
APPENDIX B Spanish Portfolio 99
Slide 100: Portfolio overview
PORTFOLIO OVERVIEW Spanish Portfolio 100
Slide 101: Our portfolio
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 OUR PORTFOLIO WELL DIVERSIFIED ACROSS SPAIN 9 3% 5 9% 1 El Faro 10 Marismas de Polvorín 11 2 Bahía Sur 11 Alcobendas Building 8 3 Los Arcos 12 La Heredad 7% 17 16 20% 4 Granaita 13 La Serena 12 10% 5 Vallsur 14 Pinatar Park 1 13 6 Habaneras 15 Motril Re
Slide 102: Spanish portfolio overview – top assets
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 SPANISH PORTFOLIO OVERVIEW TOP 10 ASSETS EL FARO BAHÍA SUR LOS ARCOS GRANAITA (I) VALLSUR GAV €159.0m €137.9m €137.2m €109.1m €90.7m Province Badajoz Cádiz Seville Granada Valladolid Catchment Area (Inhabitants) 517 491 674 250 1 499 884 628 002 477 746
Slide 103: Spanish portfolio overview – top assets
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 SPANISH PORTFOLIO OVERVIEW TOP 10 ASSETS PARQUE MARISMAS DEL HABANERAS PUERTA EUROPA PARQUE OESTE (I) PRINCIPADO POLVORÍN GAV €84.8m €64.7m €49.5m €33.5m €27.0m Province Alicante Cádiz Madrid Oviedo Huelva Catchment Area (Inhabitants) 531 670 311 110 5
Slide 104: Tenant mix
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 TENANT MIX HIGHLY DIVERSIFIED RETAIL MIX LEADING TO SUSTAINABLE, HIGH QUALITY AND LOW RISK INCOME STREAMS Assets GLA WALE (i) Occupancy 16 356 734m2 13.9 years 98.4% CATEGORY PROFILE BY RENT TOP 10 TENANTS BY RENT 30 SEPTEMBER 2020 30 SEPTEMBER 2020 1%
Slide 105: Spanish total portfolio composition
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 SPANISH TOTAL PORTFOLIO COMPOSITION SECTORAL PROFILE - BY VALUE SECTORAL PROFILE - BY GLA Development potential Offices Offices 1% 3% 5% Retail Parks 29% Top 10 Shopping Centres Top 10 67% Retail Parks Shopping Centres properties 42% properties 53% 89%
Slide 106: H1 FY2021 Operational Review
H1 FY2021 OPERATIONAL REVIEW Spanish Portfolio 106
Slide 107: Spanish vacancy profile
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 SPANISH VACANCY PROFILE PORTFOLIO VACANCY OF 1.5% OF GLA SHOPPING CENTRES Vallsur (35,212m²) 2.9% 3.9% El Faro (37,275m²) 2.5% 3.2% Puerta Europa (29,792m²) 1.1% 3.1% Bahía Sur (27,404m²) 1.5% 3.0% Los Arcos (23,504m²) 6.5% 1.2% Habaneras (24,166m²) 1.7
Slide 108: Retail lease expiry profile
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 RETAIL LEASE EXPIRY PROFILE 54% OF CONTRACTUAL RENT EXPIRING IN FY2030 AND BEYOND (WALE 11.2 YEARS TO EXPIRY AND 2.7 YEARS TO BREAK) EXPIRY PROFILE (% RENT) 100 50 46 50 36 41 28 33 14 20 4 8 6 6 8 5 5 5 4 4 3 4 Mar/21 Mar/22 Mar/23 Mar/24 Mar/25 Mar/26
Slide 109: Retail lease expiry profile
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 RETAIL LEASE EXPIRY PROFILE 68% OF CONTRACTUAL GLA EXPIRING IN FY2030 AND BEYOND (WALE 13.9 YEARS TO EXPIRY AND 2.9 YEARS TO BREAK) EXPIRY PROFILE (% GLA) 100 64 33 36 23 25 29 15 21 7 9 12 2 5 3 3 6 4 4 3 2 2 2 2 Vacant Mar/21 Mar/22 Mar/23 Mar/24 Mar/
Slide 110: Growth drivers and asset management initiatives
GROWTH DRIVERS AND ASSET MANAGEMENT INITIATIVES Spanish Portfolio 110
Slide 111: Repositioning project – Bahia Sur 1/2
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REPOSITIONING PROJECT – BAHIA SUR 1 / 2 CURRENT LAY OUT FUTURE LAY OUT (1) ACQUISITION OF EL CORTE INGLES UNIT TO REINFORCE THE DOMINANCE OF THE CENTRE, BRINGING NEW AND EXCITING TENANTS TO THE CADIZ REGION Unit Unit committed. Unit under signed Advance
Slide 112: Repositioning project – Bahia Sur 2/2
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REPOSITIONING PROJECT – BAHIA SUR 2/ 2 KIKO LEFTIES DECIMAS SOLOPTICAL (4 July) (3 September) (18 September) (25 September) ZARA (25 September) > 6 new openings in Bahia Sur SC thanks to the refurbishment project. > The new Zara’s flagship opened in Bah
Slide 113: Repositioning project – Los Arcos 1/2
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REPOSITIONING PROJECT – LOS ARCOS 1 / 2 CURRENT LAY OUT FUTURE LAY OUT (1) ACQUISITION OF HIPERCOR UNIT ENABLING IMPROVED TENANT MIX ALONG WITH STREET LEVEL RECONFIGURATION Unit signed Unit committed. Advanced negotiations Unit under negotiations RETURN
Slide 114: Repositioning project – Los Arcos 2/2
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REPOSITIONING PROJECT – LOS ARCOS 2 / 2 MERCADONA LA CALETA EXTENSIONMANIA > There have been 8 new openings in Los (10 July) (28 September) (24 September) Arcos SC due to the refurbishment project. > Having commenced in mid-July with the opening of Merc
Slide 115: Repositioning project – El Faro 1/2
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REPOSITIONING PROJECT – EL FARO 1 / 2 FUTURE LAY OUT (1) UNLOCKING VALUE BY TRANSFORMING FORMER DIY BOX INTO ATTRACTIVE F&B PLAZA Unit signed Unit committed. Advanced negotiations Unit under negotiations RETURN METRICS Capex Budget €4.5m 16 7 398 m² 92.
Slide 116: Repositioning project – El Faro 2/2
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REPOSITIONING PROJECT – EL FARO 2 / 2 BURGER KING YELMO CINES FOSTER’S HOLLYWOOD 2 OCTOBER OPENING DATE FIRST OPENING DATE FIRST WEEK DECEMBER WEEK DECEMBER Yelmo Premium cinema will open in November, the only premium cinema in the region. This offer wi
Slide 117: Spanish economic fundamentals
SPANISH ECONOMIC FUNDAMENTALS Spanish Portfolio 117
Slide 118: Impact on Spanish economy
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 IMPACT ON SPANISH ECONOMY ACCESS TO DEBT MARKETS, AT LOWER COSTS, FOR A LONGER PERIOD 10-YEAR GOVERNMENT BONDS (YIELD) BID YIELD (%) 31 OCTOBER 2020 18% 4% 16% 3.37% 14% 3% 12% 10% 2% 8% 1.19% 1% 0.72% 6% 0.27% 0.12% 0.14% 4% 0% 2% 0% -0.34% -1% -0.63%
Slide 119: Impact on Spanish economy
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 IMPACT ON SPANISH ECONOMY UNEMPLOYMENT STILL BELOW 2012 PEAK CONSUMER CONFIDENCE UNEMPLOYMENT (1) IN SPAIN BY ECONOMIC SECTOR 120 5 500 000 102.3 5 000 000 100 4 500 000 87.2 85.7 97 4 000 000 77.4 77.7 80 86 80.7 3 500 000 73.3 60.7 3 000 000 60 53.1 6
Slide 120: Real estate market in Spain
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REAL ESTATE MARKET IN SPAIN YIELDS ALREADY CLOSE TO HISTORIC HIGHS YIELD SPREADS AT HISTORICALLY ATTRACTIVE LEVELS ATTRACTIVE RELATIVE PRICING VERSUS OTHER CORE REAL ESTATE SECTORS 9% 9% 8% 7% 6.75% 8% 6% 5.85% 7% 6.75% 5% 4% 6% 5.25% 3% 5% 5.00% 2% 0.9
Slide 121: Real estate market Spain
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 REAL ESTATE MARKET SPAIN PRIME RENTS IN SPAIN AND GERMANY HAVE PROVEN MORE RESILIENT PRIME SPANISH SHOPPING CENTRE RENTS VS REST OF EUROPE (€/m²/MONTH) €340 €300 €260 €220 226 €180 173 €140 140 €100 92 €60 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
Slide 122: Appendix C – Financial Performance, Debt and Treasury
APPENDIX C FINANCIAL PERFORMANCE, DEBT AND TREASURY 122
Slide 123: Simplified income statement
FINANCIAL PERFORMANCE, DEBT AND TREASURY / INTERIM RESULTS 30 SEPTEMBER 2020 2 SIMPLIFIED INCOME STATEMENT September 2020 September 2019 Variance 6 months 6 months % Rm Rm Revenue 997 1 382 (27.8) Southern Africa 690 779 (11.4) Spain 307 603 (49.1) Property Expenses (223) (162) (37.5) Net property i
Slide 124: Geographical segment analysis
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 GEOGRAPHICAL SEGMENT ANALYSIS SOUTHERN AFRICAN PORTFOLIO LESS IMPACTED BY COVID-19 RENT CONCESSIONS 6 MONTHS TO SEPTEMBER 2019 6 MONTHS TO SEPTEMBER 2020 31% 44% REVENUE 56% REVENUE 69% 31% NET NET 48% PROPERTY 52% PROPERTY INCOME 69% INCOME Southern Af
Slide 125: Analysis of group loan repayment and hedging expiry profile
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 ANALYSIS OF GROUP LOAN REPAYMENT AND HEDGING EXPIRY PROFILE WELL HEDGED WITH LOW RISK EXPIRY PROFILE GROUP LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 66.7% 36.7% R2.3bn of available undrawn bank facilities 21.3% 17.5% 79% of interest bearing de
Slide 126: Analysis of Southern African loan repayment and swap expiry profile
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 ANALYSIS OF SOUTHERN AFRICAN LOAN REPAYMENT AND SWAP EXPIRY PROFILE WELL HEDGED WITH LOW RISK EXPIRY PROFILE SOUTHERN AFRICAN LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 38.5% 25.7% 64% of interest bearing debt hedged 22.8% 37.1% 27.3% Fixed rat
Slide 127: Analysis of Spanish loan repayment and swap expiry profile
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 ANALYSIS OF SPANISH LOAN REPAYMENT AND SWAP EXPIRY PROFILE LOW REFINANCE RISK OVER THE NEXT FIVE YEARS SPANISH LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 81.5% 64.4% 90% of interest bearing debt hedged Fixed rate (swap & fixed debt) maturity pr
Slide 128: Cost of funding
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 COST OF FUNDING REDUCTION IN GROUP COST OF FINANCE DUE TO FUNDING MIX GROUP DEBT BY CURRENCY 9.30% 8.02% 2.53% 2.60% 3.95% 3.74% R18.5bn R17.0bn R14.8bn R12.9bn R4.1bn R3.5bn ZAR EUR Total Debt as at 31 March 2020 Debt as at 30 September 2020 % FY2020 H
Slide 129: Consolidated net exposure by currency
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 CONSOLIDATED NET EXPOSURE BY CURRENCY AT 30 SEPTEMBER 2020 ZAR Exposure EUR Exposure Group Rm €m Rm Vukile property value R15 734 R15 734 Arrowhead & Fairvest equity value R574 R574 Castellana property value €994 R19 505 Total direct property and listed
Slide 130: Composition of group balance sheet
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 COMPOSITION OF GROUP BALANCE SHEET MATCHING DEBT WITH ASSETS OVER TIME 2019 2020 R38.5bn R37.0bn R36.3bn 2% 2% 2% R34.0bn Castellana cash 1% Castellana property 52% 47% 53% 44% R18.5bn R17.0bn Listed investments 6% R15.5bn 7% 4% 1% Vukile cash 2% 1% 1%
Slide 131: Forecast LTV sensitivity to valuation and foreign exchange movements
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 FORECAST LTV SENSITIVITY TO VALUATION AND FOREIGN EXCHANGE MOVEMENTS AT 30 SEPTEMBER 2020 EXAMPLE > As the ZAR spot rate A 5% strengthening A 3% increase in A 1.70% decrease strengthens to EUR to 18.64 property valuation in the Group LTV Property valuat
Slide 132: EUR foreign exchange hedging
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 EUR FOREIGN EXCHANGE HEDGING MAINTAINING SUSTAINABLE PREDICTABLE INCOME WHILE REDUCING CURRENCY VOLATILITY Dec June Dec Jun Dec June Dec Jun Dec €000 2020 2021 2021 2022 2022 2023 2023 2024 2024 Fixed EUR/ZAR rate 18.4598 19.2738 20.1694 20.9673 21.8077
Slide 133: Cross currency interest rate swap exposure
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 CROSS CURRENCY INTEREST RATE SWAP EXPOSURE LIMITED USE OF CROSS CURRENCY INTEREST RATE SWAPS > Cross Currency Interest Rate Swaps (“CCIRS”) have the ability to both hedge foreign exchange fluctuations on Vukile’s earnings and asset exposure. To minimise
Slide 134: Corporate bond issuances
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 CORPORATE BOND ISSUANCES BALANCE OF SECURED AND UNSECURED DEBT Corporate Bonds Security Amount Reference Rate Margin Maturity Date Initial Term VKE10 Secured R194m 3M JIBAR 1.80% 08 July 2022 5.2 years VKE11 Unsecured R175m 3M JIBAR 1.75% 20 April 2023
Slide 135: Overview of DMTN secured property portfolio
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 OVERVIEW OF DMTN SECURED PROPERTY PORTFOLIO QUALITY PORTFOLIO Direct property No. of properties GLA Average property Retail rent from Contractual rental value national tenants escalation R676m 2 39 124m² R338m 84% 6.9% Income from top WALE of Retail ten
Slide 136: Overview of unencumbered assets
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 OVERVIEW OF UNENCUMBERED ASSETS QUALITY UNENCUMBERED ASSETS Total unencumbered Unencumbered direct Unencumbered listed Number of GLA assets property shares properties R7 123m R4 050m R3 073m 29 320 003m² Average property Retail rent from Contractual ren
Slide 137: See-through loan-to-value ratio
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 “SEE-THROUGH” LOAN-TO-VALUE RATIO Interest bearing Property debt assets Cash 000 000 000 LTV Shareholding Vukile Company, MICC and 100% of Clidet No. 1011 R7 327 413 R15 734 433 R327 275 44.5% 100.0% Castellana R9 691 908 R19 505 103 R826 311 45.5% 82.6
Slide 138: Notes to treasury management slides
APPENDICES / INTERIM RESULTS 30 SEPTEMBER 2020 NOTES TO TREASURY MANAGEMENT SLIDES ALIGNED WITH INDUSTRY BEST STANDARDS (i) Loan-to-Value ratio calculated as a ratio of nominal interest-bearing debt less cash and cash equivalents (excluding tenant deposits & restricted cash) divided by the sum of (i
Vukile Property Fund — H1 FY2021 Earnings Presentation on 6ix