Slide 1: 2024 Final Results
2024 FINAL RESULTS for the year ended 30 September 2024
Slide 2: Agenda
Agenda Cape Town Westgate Mall Business overview Fairvest portfolio Office portfolio Industrial portfolio Retail portfolio Capital Expenditure Financial update Prospects for 2025 Q&A 1 Fairvest Limited Final results for the year ended 30 September 2024
Slide 3: Business overview
Clubview Corner Business overview DARREN WILDER CEO
Slide 4: Our purpose and values
Our purpose and values We are a dynamic, retail focused REIT, OUR VALUES driven by an experienced professional team, investing in quality assets with sustainable What is important to us – “ATRIP” income streams focusing on maximising Our highly skilled, professional team is empowered and entrusted t
Slide 5: Our strategy and strategic objectives
Our strategy and strategic objectives The Ridge Fairvest’s strategy is to dispose of non-core assets in the office and industrial sectors, and to reinvest the proceeds in order to become a retail only REIT, focused on investing in assets servicing the previously disadvantaged communities and located
Slide 6: Fairvest at a glance
Fairvest at a glance Diverse portfolio of R12.3 billion Market cap R7.8 billion (2023: R12.0 billion) (2023: R5.7 billion) Sectoral split Revenue Value GLA 69.0% 70.6% 52.9% Retail 2023: 68.2% 2023: 69.3% 2023: 48.6% Bara Precinct 19.1% 17.7% 20.6% Office 2023: 20.7% 2023: 20.0% 2023: 25.9% Sandton
Slide 7: September 2024 highlights
September 2024 highlights 138.34 cents per share distribution per A share Solar investment produced 10.6% (2023: 132.53 cents per share) of the portfolio’s electricity cost (2023: 10.1%) 43.29 cents per share distribution per B share (2023: 41.29 cents per share) Investment into solar projects of R4
Slide 8: Corporate social investment
Corporate social investment The Group has continued its focus on Corporate Social Initiatives which is embedded in the Group’s culture. The “Fairvest for Change” initiatives are identified, as per the approved criteria set by the Social and Ethics Committee. During the year under review, Fairvest sp
Slide 9: Environmental impact
Environmental impact Fairvest is committed to treating the environment with care and sensitivity and takes this responsibility seriously. To this end, we have a number of solar and water projects in place to both limit our impact on the environment and to ensure ongoing organisational sustainability
Slide 10: Environmental impact (continued)
Environmental impact (CONTINUED) Backup power The Group constantly reassess the changing environment relative to our portfolio specific needs in terms of backup power due to failing authority supplies. Clubview Corner The Group own 65 generators with the capacity of 17.1MVA and we have 151 tenant-in
Slide 11: Environmental impact (continued)
Environmental impact (CONTINUED) Water projects Security of water supply is under greater pressure given the lack of maintenance of key infrastructure by government, worsened by the impact of load shedding. This makes it essential for Fairvest to ensure that water is conserved wherever possible, use
Slide 12: Disposals
Disposals Total disposals since merger Premium/ (discount) Date Sales value Book value to book Average GLA Asset Class transferred (R’m) (R’m) value yield (m²) 2022 financial year Property disposals (4) Retail, Office, Industrial 41.4 39.1 5.9% 11.1% 11 184 2023 financial year Property disposals (7)
Slide 13: Fairvest portfolio
The Ridge Fairvest portfolio DARREN WILDER CEO
Slide 14: Group portfolio highlights
Group portfolio highlights Value R12.3 billion (2023: R12.0 billion) Sector breakdown based on revenue Number of properties 128 (2023: 134) Total gross lettable area Retail 69.0% 1 038 350m² (2023: 1 126 191m²) 14 Vacancy 4.3% Office 19.1% (2023: 4.5%) 61 Tenant retention 85.7% 2 Industrial 11.9% 6
Slide 15: Portfolio composition
Portfolio composition Retail Office Industrial Average Average Average property property property Total Number of value Value % of Number of value Value % of Number of value Value % of value Vacancy band properties (R’m) (R’m) total properties (R’m) (R’m) total properties (R’m) (R’m) total (R’m) 0%
Slide 16: Portfolio leasing activity
Portfolio leasing activity New deals Renewals September September September September 2024 2023 2024 2023 Number of leases 531 426 Number of leases 476 494 Total GLA (m2) 137 193 102 145 Total GLA (m2) 167 515 171 184 Average gross rental achieved (R/m2) 94.17 99.17 Average gross rental expiry (R/m2
Slide 17: Geographical and sectoral split
Geographical and sectoral split Geographical profile by gross revenue Geographical profile by GLA 34.1% Gauteng 48.5% 21.3% Western Cape 13.9% 11.5% KwaZulu-Natal 9.5% 10.2% Eastern Cape 8.5% 7.4% Limpopo 7.5% 6.2% North West 4.8% 4.3% Free State 3.3% 3.7% Northern Cape 3.0% 1.3% Mpumalanga 1.0% Sec
Slide 18: Office portfolio
Metalbox Office portfolio RIAZ KADER COO
Slide 19: Office portfolio highlights
Office portfolio highlights Value R2.2 billion (2023: R2.4 billion) WHERE WE ARE Number of properties 29 (2023: 34) Total gross lettable area TOTAL 29 214 100m² 1 (2023: 291 146m²) Vacancy 9.6% 19 (2023: 9.7%) 1 Tenant retention 75.9% (2023: 86.4%) 3 Positive rental reversion 0.6% (2023: (0.4%)) Ave
Slide 20: Office leasing activity
Office leasing activity New deals Renewals September September September September 2024 2023 2024 2023 Number of leases 149 108 Number of leases 73 86 Total GLA (m2) 38 025 37 003 Total GLA (m2) 29 764 41 544 Average gross rental achieved (R/m2) 117.15 93.18 Average gross rental expiry (R/m2) 141.59
Slide 21: Office renewals
Office renewals Significant lease renewals over the past 12 months GLA (m²) Tijger Park 4 297 Tijger Park 3 198 Mae West Building 2 922 Bridge On Bond 2 906 Rosebank Quarter 1 224 Suntyger 1 124 1 Sturdee 985 Metalbox 835 Metalbox 835 Suntyger 778 Tijger Park 20 Fairvest Limited Final results for th
Slide 22: Office new deals
Office new deals Significant lease new deals over the past 12 months GLA (m²) Rosebank Quarter 1 821 Metalbox 1 253 Bridge On Bond 1 061 Crownwood Office Park 1 060 Bedford Park 1 057 Bridge On Bond 1 033 1 Sturdee 995 Bridge On Bond 937 Tijger Park 793 Rosebank Quarter 775 Rosebank Quarter 21 Fairv
Slide 23: Office strategic objectives
Office strategic objectives Focus on improving lease length and built in escalations as we move into a more sustainable environment. Successful “retailing” of space by introducing flexible office, storage solutions and retail into a mixed use environment. The continued implementation of “FairSpecíng
Slide 24: Industrial portfolio
Germiston Route 24 Industrial portfolio RIAZ KADER COO
Slide 25: Industrial portfolio highlights
Industrial portfolio highlights Value R1.4 billion (2023: R1.3 billion) WHERE WE ARE Number of properties 27 (2023: 26) Total gross lettable area TOTAL 27 275 245m² 3 (2023: 287 363m²) Vacancy 0.94% 22 (2023: 0.95%) Tenant retention 91.5% (2023: 84.3%) 1 Positive rental reversion 9.7% (2023: 5.8%) A
Slide 26: Industrial leasing activity
Industrial leasing activity New deals Renewals September September September September 2024 2023 2024 2023 Number of leases 86 66 Number of leases 74 77 Total GLA (m2) 58 820 31 822 Total GLA (m2) 67 936 54 490 Average gross rental achieved (R/m2) 47.82 49.88 Average gross rental expiry (R/m2) 45.88
Slide 27: Industrial renewals
Industrial renewals Significant lease renewals over the past 12 months GLA (m²) MCG 11 814 Kolbenco 8 291 Trador 6 246 1 Range Road 4 280 1 Range Road 2 250 Germiston Route 24 1 752 Germiston Route 24 1 331 Creston 1 270 Roodepoort Robertville Industrial Park 1 207 Pinetown Westmead Kyalami Park 1 1
Slide 28: Industrial new deals
Industrial new deals Significant lease new deals over the past 12 months GLA (m²) Selby Building 13 817 Pretoria Silverton 294 Battery 5 787 Beka Candela 4 616 Simgold 2 485 Simgold 1 675 Urban Park 1 428 Pretoria Silverton 34 Bearing 1 200 Creston 1 100 Germiston Route 24 1 051 Germiston Route 24 1
Slide 29: Industrial strategic objectives
Industrial strategic objectives Maintain tenant retention above 90% to maintain a strong net Germiston Route 24 operating income. Maintain and reduce expenses, which includes the implementation of improved operational cost recoveries. Counter failing council infrastructure with additional power and
Slide 30: Retail portfolio
Clubview Corner Retail portfolio RIAZ KADER COO
Slide 31: Retail portfolio highlights
Retail portfolio highlights Value R8.7 billion (2023: R8.3 billion) WHERE WE ARE Number of properties 72 (2023: 74) Total gross lettable area TOTAL 72 549 005m² 10 11 (2023: 547 682m²) Vacancy 4.0% 20 (2023: 3.7%) 2 5 Tenant retention 86.0% (2023: 88.1%) 10 5 4 Positive rental reversion 3.1% (2023:
Slide 32: Retail leasing activity
Retail leasing activity New deals Renewals September September September September 2024 2023 2024 2023 Number of leases 296 252 Number of leases 329 331 Total GLA (m2) 40 348 33 320 Total GLA (m2) 69 815 75 150 Average gross rental achieved (R/m2) 140.10 152.90 Average gross rental expiry (R/m2) 183
Slide 33: Retail portfolio composition
Retail portfolio composition Community Township Value Neighbour- Small centre centre centre CBD hood Rural Convenience regional Total Value (R’000) 1 260 533 1 150 498 1 126 964 676 285 1 652 858 1 061 130 554 982 1 201 846 8 685 096 Number of properties 6 9 3 16 16 13 7 2 72 GLA (m2) 89 086 71 578
Slide 34: Retail top 10 tenant exposure by GLA and revenue
Retail top 10 tenant exposure by GLA and revenue By revenue and GLA Total 10 9.5% 41.2% 8 7.5% 5.7% 6 4.3% 4.0% 4 3.2% 3.1% 2.0% 2 1.0% 0.9% 0 GLA m2 71 992 48 079 39 941 19 787 25 079 21 212 18 024 9 652 7 638 6 048 Monthly revenue (% of total retail revenue) 33 Fairvest Limited Final results for
Slide 35: Retail new deals and renewals
Retail new deals and renewals Significant renewals AIM MINI 2 514 1 867 1 689 1 513 1 482 1 153 1 105 952 933 921 GLA (m2) Significant new deals YHL Furniture Home 1 297 1 050 815 676 634 600 519 500 469 GLA (m2) 34 Fairvest Limited Final results for the year ended 30 September 2024
Slide 36: Trading densities
35 Annual trading density (R/m²) 0 20 000 40 000 60 000 80 000 100 000 Building 1 Building 2 Building 3 Building 4 Building 5 Building 6 Trading densities Building 7 Building 8 Fairvest Limited Final results for the year ended 30 September 2024 Building 9 Building 10 Building 11 Building 12 Building
Slide 37: Trading density per segment
Trading density per segment 60 000 55 000 50 000 Trading Density (R/m²) 45 000 40 000 35 000 30 000 25 000 20 000 2021 2022 2023 2024 Value centre CBD Township centre Neighbourhood Convenience Community centre Rural Small regional All 36 Fairvest Limited Final results for the year ended 30 September
Slide 38: Rent-to-sales ratio
37 Percentage 0 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Building 1 Building 2 Building 3 Building 4 Building 5 Building 6 Rent-to-sales ratio Building 7 Building 8 Fairvest Limited Final results for the year ended 30 September 2024 Building 9 Building 10 Building 11 Building 12 Building 13 Building 1
Slide 39: Retail strategic objectives
Retail strategic objectives Focus on water back-up solutions due to failing infrastructure or mismanagement in Cosmos Centre the smaller municipalities. Focus on community relationships to counter the impact of local risks, i.e. construction mafia groups and political changes. Partnering on tenant e
Slide 40: Capital expenditure
Tijger Park Capital expenditure
Slide 41: Projects
Projects Bedford Park Lyndhurst Square Before After Before After Rosebank Quarter The Lane Before After Before After 40 Fairvest Limited Final results for the year ended 30 September 2024
Slide 42: Projects (continued)
Projects (CONTINUED) Cleary Park Before After Cape Town Westgate Mall Shops Before After 41 Fairvest Limited Final results for the year ended 30 September 2024
Slide 43: Financial update
Access Park Financial update JACQUES KRIEL CFO
Slide 44: Distributable income analysis
Distributable income analysis 12 months 12 months ended ended 30 September 30 September 2024 2023 % Unaudited R‘000 R‘000 change Revenue (excluding straight-line rental income) 2 034 340 1 923 237 5.8% Sundry income 11 149 4 942 125.6% Property expenses (863 084) (794 843) 8.6% Net property income 1
Slide 45: Summarised consolidated statement of financial position
Summarised consolidated statement of financial position Audited at Audited at 30 September 30 September R’000 2024 2023 Assets Investment property 12 306 955 12 004 066 Other financial assets 234 139 199 054 Trade and other receivables 190 827 185 579 Loans receivable and amounts owing by non-contro
Slide 46: NAV Bridge per B share
NAV Bridge per B share Cents per share 600 550 65 478 (41) 500 486 (15) (1) 450 400 As at Profit for the period Dividends paid Change in value of Shares vested under As at 30 September 2023 A share NAV conditional share plan 30 September 2024 Increase Decrease Total 45 Fairvest Limited Final r
Slide 47: Property portfolio valuations
Property portfolio valuations Valuation 2024 discount 2024 exit cap Like-for-like Rate per m2 R’000 rates rates increase/(decrease) (R/m2) 8 685 096 14.0% 9.9% 2.1% 15 820 Retail 2 186 959 14.6% 10.4% (0.3%) 10 215 Office 1 434 900 14.6% 10.3% 4.7% 5 213 Industrial Total 12 306 955 14.2% 10.0% 2.0%
Slide 48: Capital expenditure
Capital expenditure Capital expenditure Property value % of value R’000 R’000 spent 142 189 8 685 096 1.6% Retail South View Shopping Centre 95 046 2 186 959 4.3% Office Sandton Sunninghill Place 37 062 1 434 900 2.6% Industrial Beka Candela Total 274 297 12 306 955 2.2% 47 Fairvest Limited Final re
Slide 49: Debt and hedge maturity profile
Debt and hedge maturity profile Millions 2 500 2 000 2 000 1 516 1 452 1 500 1 248 1 000 894 500 0 Expiring in the next 12 months Expiring in the next 24 months Expiring in the next 36 months Debt Swaps 48 Fairvest Limited Final results for the year ended 30 September 2024
Slide 50: Debt metrics
Debt metrics 30 September 30 September 2024 2023 Loan-to-value (SA REIT BP) 33.3% 33.3% % of debt fixed 68.6% 64.8% Weighted average cost of funding 9.70% 9.74% Interest cover times 2.8 2.5 Weighted average maturity of debt months 19 26 Weighted average maturity of swaps months 14 20 Total debt (R’m
Slide 51: Prospects for 2025
St Andrews Office Park Prospects for 2025 DARREN WILDER CEO
Slide 52: Prospects
Prospects Distribution per B share for the 2025 financial year expected to be between 45.00 and 46.00 cents per share Maintain 100% pay-out ratio Continue to simplify the business Maintain LTV at below 35% Conservative balance sheet Acquisitions only at the right price Increased shareholding in Dipu
Slide 53: Thank you
Sandton Sunninghill Place Thank you
Slide 54: Q&A
Mala Plaza Q&A
Slide 55: www.fairvest.co.za
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