SA Corporate Real Estate Ltd. · JSE:SAC

SA Corporate Real Estate — H1 2020 Earnings Presentation

17 slides from SA Corporate Real Estate's earnings presentation, Jun 29, 2020

  1. Slide 1: SA Corporate Pre-close Update Presentation

    SA Corporate Pre-close Update Presentation 29 June 2020

  2. Slide 2: Agenda

    Agenda  Performance Update – Traditional Portfolio Performance – Afhco Portfolio Performance – Zambian JV Performance – Collections and Rent Relief  Risk Mitigation During & Post COVID-19 Environment – Securing Tenant Covenant – Mitigating Distressed Tenants – Capital Management – Partner Risk Mit

  3. Slide 3: Traditional Portfolio Performance

    Traditional Portfolio Performance Vacancy Anticipated Vacancy Sector Comments 31-Dec-19 30-Jun-20 Dependent on transfer of 20 500 m2 530 Nicholson currently lodged in Deeds Office. Industrial 3.2% 3.9% to 0.7% Vacancy reduced due to disposal discussed later – refer slide 9 16 528m2 vacant. 4 049m2 t

  4. Slide 4: Afhco Portfolio Performance

    Afhco Portfolio Performance Vacancy Anticipated Vacancy Sector Comments 31-Dec-19 30-Jun-20 No leasing was possible in April and May Residential 8.2% 13.0% whilst certain tenants moved out Limited movement for tenants was allowed Retail 4.1% 4.8% during COVID-19 lockdown Retention Rate Anticipated R

  5. Slide 5: Zambia Portfolio Performance

    Zambia Portfolio Performance Vacancy Anticipated Vacancy Sector Comments 31-Dec-19 30-Jun-20 Vacancy increase largely due to the vacating of Edgars and Jet (Edcon group), totalling 3 413m2 and the East Park Mall 1.6% 16.8% liquidation of the Food Lovers Market franchisee 1 734m2. Retenanting being a

  6. Slide 6: Collections and Rent Relief

    Collections and Rent Relief Student Zambian Retail Industrial Commercial Storage Afhco Retail Residential SA Total Contribution accommodation JV Normal NPI contribution 37.4% 28.7% 1.3% 0.4% 2.5% 23.5% 0.7% 94.5% 5.5% Student Zambian Retail Industrial Commercial Storage Afhco Retail Residential SA T

  7. Slide 7: Securing Tenant Covenant

    Securing Tenant Covenant  Industrial large renewals / re-tenanting: Tenant GLA Reversion, Term & Escalation Status Bell (Bell Equipment 27 681 m2 -42%, 12 yrs (election to exit half after 6 Executed Ltd suretyship) yrs), 6% p.a. with -5% reversion after yr 6 Autozone 18 051 m2 -23%, 5 yr, 7% Execut

  8. Slide 8: Mitigating Distressed Tenants

    Mitigating Distressed Tenants Retail  Edcon occupied 4 949m2 (including CNA 859m2) representing 1.38% of total SA retail portfolio GLA (0.31% of total SA GLA). Engaging new CNA acquirer to continue their tenure & pharmacies for 45% of remaining ex-Edcon space.  Past migration away from sit-down re

  9. Slide 9: Mitigating Distressed Tenants

    Mitigating Distressed Tenants Industrial  Divested from industrial properties with tenant distress: Property Sale Tenancy / Rationale Consideration Erf 641 Springfield, Durban R70.0 million Vacant for 12 months, leasehold, poor logistics characteristics Erf 116 New Brighton, Port R83.5 million Ever

  10. Slide 10: Mitigating Distressed Tenants

    Mitigating Distressed Tenants Afhco  Retail tenant engagement – 80% of non-essential service retail / commercial tenants have accepted relief offered – 20% still under negotiation – Rental expected to return to 50%+ from June onwards  Residential tenant engagement – Tenant survey – next slide – In

  11. Slide 11: Residential Tenant Survey – COVID-19 impact

    Residential Tenant Survey – COVID-19 impact  Survey of 3 000 tenants in arrears (38%) to determine impact of COVID-19, with 1 130 responses 0.7% 5.9% 3.8% 11

  12. Slide 12: Capital Management

    Capital Management  Distribution deferral – 2nd tranche of R240 million of 2019 H2 distribution deferred to be reassessed in September – Compliance with JSE LR requiring distribution of at least 75% of distributable profits – 2nd tranche tax deductible if paid by year-end, i.e. 31 December 2020  1

  13. Slide 13: Partner Risk Mitigation

    Partner Risk Mitigation  Calgro M3 exposure & indebtedness substituted with: – La Vie Nouvelle assisted living & frail care centre in Broadacres for a net consideration of R98.5 million inclusive of 7-year rental guarantee awaiting transfer – 80% interest in The Falls Lifestyle Estate, Wilgeheuwel,

  14. Slide 14: COVID-19: Operational Measures – Retail

    COVID-19: Operational Measures Retail 14

  15. Slide 15: COVID-19: Operational Measures – Residential

    COVID-19: Operational Measures Residential 15

  16. Slide 16: COVID-19: Operational Measures – Internal measures

    COVID-19: Operational Measures Internal measures 16

  17. Slide 17: SA Corporate Real Estate Afhco

    17 & A SA CORPORATE REAL ESTATE AFHCO

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