Hyprop Investments Limited · JSE:HYP
Hyprop Investments — FY2011 Earnings Presentation
20 slides from Hyprop Investments's earnings presentation, February 2012
Slide 1: Audited annual results 31 December 2011
Audited annual results 31 December 2011 Agenda OVERVIEW FINANCIAL RESULTS OPERATIONAL PERFORMANCE LEASING DEVELOPMENTS PROSPECTS 2 1
Slide 2: Key investment attractions and key features
Overview: Key investment attractions Largest listed shopping centre fund Premium quality shopping centres: – Diverse tenant base with strong national profile – Flagship national stores – Preferred shopping destinations Robust financial position Specialist and experienced internal management Good tra
Slide 3: Distributions; Unit price and market cap
Distributions Cents per unit 500 2nd Half Full Year % growth 400 7.3% 9% 6% 383 14% 357 300 20% 328 308 270 10.4% 200 6% 10% 13% 203 22% 183 158 167 140 100 0 2007 2008 2009 2010 2011 5 Unit price and market cap 10 years Rand Rbn 60 18 57.00 Unit price (R) Market cap Rbn 53.25 50 15 45.00 45.85 42.0
Slide 4: Total assets and property portfolio
Total assets Shopping centres Offices (R885m) (R16 480m) 5% 84% 1% Other (R145m) 10% Listed securities (R2 176m) 7 Property portfolio Super regional Canal Walk (80%) Large regional CapeGate Precinct Clearwater Mall The Glen (75.15%) Woodlands Boulevard Regional Hyde Park The Mall of Rosebank H Y D E
Slide 5: Shopping centres; Financial results
Shopping centres Size Value Somerset Value Mart Stoneridge Somerset Value Mart Willowbridge Willowbridge 1% 2% Canal Walk Atterbury Value Mart Atterbury Value Mart 4% 3% Canal Walk 6% 20% Southcoast Mall 6% 6% 1% Stoneridge The Mall 30% 7% of Rosebank 6% Southcoast Mall 4% Hyde Park 8% CapeGate 5% 1
Slide 6: Financial highlights
Financial highlights Attfund Retail numbers included for 4 months Strong like-for-like growth Improved growth from Sycom 11 Financial highlights (cntd.) Savings in interest costs Once-off benefit 3.7 cents Assumed Attfund Retail deferred tax 12 6
Slide 7: Income statement extracts; Net income like-for-like
Income statement ‒ extracts 31 Dec 2011 31 Dec 2010 Rm Rm Revenue 1 483 1 105 Investment property 1 351 985 37% Listed investments 132 120 10% Property expenses (512) (372) 38% Net property income 971 733 32% Other operating expenses (34) (35) Operating income 937 698 Net interest (208) (122) Net op
Slide 8: Revenue spread; Balance sheet extracts
Revenue spread Municipal cost recovery 21% 55% 10% Operating cost recovery Retail rental 6% 4% Customer parking Storerooms and other 2% Office rental 1% Monthly parking Turnover rental 1% 15 Balance sheet ‒ extracts 31 Dec 2011 31 Dec 2010 Investment property 17 517 9 503 84% Listed investments 2 17
Slide 9: Valuations; Borrowings
Valuations Size Hyprop share Value/m² (m2) (R'000) (R/m2) Super regional 157 450 4 880 000 38 742 Large regional 335 877 7 162 365 22 922 Regional 102 221 2 382 000 24 496 Value centres 156 557 2 055 500 13 420 Shopping centres 752 105 16 479 865 24 470 Offices 51 240 769 000 15 008 Average yield 7.
Slide 10: Operational performance: Shopper visits
OPERATIONAL PERFORMANCE 19 Shopper visits & shoppers p/m² Shoppers / m2 25 -4.15% Average portfolio growth: +3% 20 21 -0.43% -5.0% 15 16 2.32% 1.49% 15 -0.53% 13 13 2.65% 10 12.1% 11 10 9 5 0 The Mall The Hyde Canal CapeGate Southcoast Clearwater Woodlands of Rosebank Glen Park Walk Mall Mall Boulev
Slide 11: Trading density; Spend per head
Trading density Per month (R/m²) Per annum (R/m²) Hyde Park 3 026 36 307 Canal Walk 2 511 30 135 Clearwater Mall 2 368 28 413 The Glen 2 316 27 790 Willowbridge 2 216 26 587 Somerset Value Mart 2 001 24 009 CapeGate Regional 1 988 23 858 The Mall of Rosebank 1 827 21 927 Woodlands Boulevard 1 789 21
Slide 12: Gross rent to turnover; Lease exposure as % of GLA
Gross rent to turnover The Mall of Rosebank 10% Canal Walk 9% Hyde Park 9% Atterbury Value Mart 8% Stoneridge 8% CapeGate Value Centre 8% The Glen 8% Woodlands Boulevard 7% Clearwater Mall 7% Southcoast Mall 6% CapeGate Regional 6% Somerset Value Mart 5% Portfolio Average: 7% Willowbridge 5% 23 Leas
Slide 13: Lease expiry profile; Leasing
Lease expiry profile - 2012 % of GLA 60 12 546 GLA (m²) 6 125 50 Renewals (m²) 49 40 47 705 30 37 009 11 969 27 637 7 614 4 981 25 20 21 104 986 74 624 47 707 18 140 569 51 312 29 415 69 867 8 510 5 883 4 197 10 85 312 8 943 3 517 1 940 2 510 9 2 401 8 8 6 7 7 3 4 0 Clearwater Woodland Canal Walk St
Slide 14: Vacancies; Lease activity
Vacancies Hyde Park offices (1 658m²) Glenfield & Glenwood offices (1 488m²) 3% Canal Walk Offices (753m²) 6% 5% Lakefield offices (2 655m²) Stoneridge (8 360m²) 9% 28% 7% Willowbridge (2 152m²) 9% 23% Clearwater Mall (2 669m²) 10% CapeGate (6 776m²) The Mall of Rosebank Area % of GLA (2 975m²) (m²)
Slide 15: Developments: Redevelopment of The Mall of Rosebank
DEVELOPMENTS 29 Redevelopment The Mall of Rosebank Complete refurbishment and enlargement to 62 000m² Demolition of existing structures started on Rosebank Gardens site Good response from national tenants Phased openings from 2013 to 2014 Estimated cost of R920m Conditions outstanding: ‒ Town planni
Slide 16: Other developments; Introduction of new technology
Other developments Planning Enclose mall areas, improve parking and access Willowbridge roads and improve tenant mix Enlarge Edgars and Woolworths; Canal Walk reconfigure existing areas The Glen Apply for further retail rights 31 Introduction of new technology 32 16
Slide 17: Unitholder profile; Prospects
Unitholder profile Redefine Properties Other shareholding 31.2% <3.5% 43.5% 8.5% Government Employees 8.0% Pension Fund Standard Bank 3.7% 4.9% L Norval Stanlib 33 PROSPECTS 34 17
Slide 18: Looking ahead: Strategy and focus
Looking ahead Strategy Invest in sizable shopping centres Not restricted to any specific location ‒ Include rest of Africa Grow assets through acquisitions or developments ‒ Will enter into joint ventures or partnerships Expand existing centres to meet tenant demand Higher gearing 35 Looking ahead F
Slide 19: Questions & Answers; Appendix
QUESTIONS & ANSWERS 37 APPENDIX 38 19
Slide 20: Top 8 properties by value
Top 8 properties by value Canal Walk Clearwater Woodlands The Glen (80% undivided share) Mall Boulevard (75% undivided share) Region Cape Town Region Johannesburg Region Pretoria Region Johannesburg Valuation (Rm) 4 880 Valuation (Rm) 2 500 Valuation (Rm) 1 604 Valuation (Rm) 1 623 Total GLA (m²) 15