Mas P.l.c. · JSE:MSP
Mas P.l.c — Investor Presentation (November 2021)
26 slides from Mas P.l.c's investor presentation, November 2021
Slide 1: Investor Presentation November 2021
Photo: DN1 Value Centre Investor Presentation November 2021 GREEN PROPERTY INVESTOR IN CENTRAL AND EASTERN EUROPE
Slide 2: Table of Contents
TABLE OF CONTENTS Company Overview 03 Strategy Sustainable Growth Strategy 04 Increase Rental Income and Property Values Through Sustainable Asset Management Initiatives 05 Case Study: Asset Management Initiatives at Flensburg Galerie 06 Grow Investment in New, Quality Income Properties Rolled-Out b
Slide 3: Company Overview
COMPANY OVERVIEW JSE listed green property investor and operator focused on retail property investments in CEE. Exposure to residential and commercial property developments in Romania, on a downside protected basis, via joint venture with developer Prime Kapital. GROUP CEE DJV WE DJV developed incom
Slide 4: Sustainable Growth Strategy
Strategy SUSTAINABLE GROWTH STRATEGY MAS’ long-term strategy is underpinned by continued consumption growth in CEE markets. MAS’ strategic objectives are to: Increase rental income and property values through sustainable asset management initiatives 4% annualised LFL net rental growth to 2026 99% oc
Slide 5: Increase Rental Income and Property Values Through Sustainable Asset Management Initiatives
Strategy INCREASE RENTAL INCOME AND PROPERTY VALUES THROUGH SUSTAINABLE ASSET MANAGEMENT INITIATIVES Value creation through proven asset management capabilities carried out by a team with an unparalleled track record in CEE and grounded in detailed data centered analysis. NRI GROWTH NRI GROWTH NRI G
Slide 6: Case Study: Asset Management Initiatives at Flensburg Galerie
Strategy CASE STUDY: ASSET MANAGEMENT INITIATIVES AT FLENSBURG GALERIE Initiatives to protect shareholder value and prepare the asset for disposal at an optimal level. Centre management internalisation and contracts renegotiation Parking operation internalisation Relocation of city library and repla
Slide 7: Grow Investment in New, Quality Income Properties Rolled-Out by JV Partner Prime Kapital
Strategy GROW INVESTMENT IN NEW, QUALITY INCOME PROPERTIES ROLLED-OUT BY JV PARTNER PRIME KAPITAL Substantial secured commercial development pipeline to support additional growth and capital appreciation, achievable with the current capital base, and with a substantial bearing on total returns per s
Slide 8: Improve Sustainable Future Distributions Through Exposure to Residential Developments
Strategy SUBSTANTIALLY IMPROVE SUSTAINABLE FUTURE DISTRIBUTIONS THROUGH EXPOSURE TO RESIDENTIAL DEVELOPMENTS ROLLED OUT BY JV PARTNER PRIME KAPITAL Silk District Elba Residential IASI €120.3m BUDGET 1,491 4,446 UNITS Total number of units €115.2m BUDGET 1,252 €431.5m Ploiesti Residential Total budge
Slide 9: Sensibly Deploy Excess Capital Through Direct Acquisitions
Strategy SENSIBLY DEPLOY EXCESS CAPITAL THROUGH DIRECT ACQUISITIONS MAS is not a financial investor, but invests selectively in assets with high value-add potential unaccessible to institutional investors. The Group is focused on expanding its asset base through property acquisitions, extensions and
Slide 10: Leverage on Flexibility Provided by Existing Substantial Liquidity and Low Gearing
Strategy LEVERAGE ON FLEXIBILITY PROVIDED BY EXISTING SUBSTANTIAL LIQUIDITY AND LOW GEARING Conservative self-imposed limitations set are considerably more restrictive than the covenant tolerances governing outstanding long-term debt. Historical LTV KEY INDICATORS POLICY ACTUAL 50% Net debt/Net 40%
Slide 11: Governance Structure
Governance GOVERNANCE STRUCTURE • Balanced Board structure, with a majority of independent Non-Executive Directors and appropriate Board committees • Compliance with King IV – best practices on governance and transparency • In-house internal audit function managed by a seasoned professional • Code o
Slide 12: Executive Directors and Function Heads, Succession
Governance EXECUTIVE DIRECTORS AND FUNCTION HEADS, SUCCESSION MAS is currently managed by a team of approximately 200 professionals. The current team took over the Martin Slabbert Irina Grigore management of the Group in November 2019, following CEO CFO (Deputy CEO) 25 13 a transaction between MAS a
Slide 13: Compensation Policy
Governance COMPENSATION POLICY Total long-term shareholders’ return is the principal KPI relevant to senior executives’ compensation. Compensation structure Component Principle Instrument Eligibility MAS’ long-term approach to compensation for senior executives aims to sustainably maximise long-term
Slide 14: Compensation Implementation
Governance COMPENSATION IMPLEMENTATION Non-Executive Directors CTC compensation package granted in MAS SPS • Non-Executive Directors’ compensation is benchmarked and adjusted for inflation annually, and reflects annual responsibilities, as well as meeting attendance and Committee obligations. Irina
Slide 15: MAS' Approach to Sustainability
Governance MAS’ APPROACH TO SUSTAINABILITY MAS’ approach to business is anchored in the view that to be successful, businesses must make a positive contribution to society. As a result, investment decisions are assessed on their short and long-term economic, social and environmental impact on the co
Slide 16: Environment
Governance ENVIRONMENT MAS aims to reduce resource consumption by implementing energy saving measures. The Group implements energy-efficient solutions across all properties it operates and when these are refurbished, specific measures for optimising resource utilisation and minimisation of carbon fo
Slide 17: 100% Green CEE Buildings
Governance 100% GREEN CEE BUILDINGS In line with the Group’s strategy, MAS has implemented, in conjunction with partner Prime Kapital, sustainability policies focused on Central and Eastern European properties. During the year, all income properties (directly and indirectly owned and operated) have
Slide 18: Development Joint Venture Structure
Appendices DEVELOPMENT JOINT VENTURE STRUCTURE • Unique low-risk access to exceptional development pipeline with pre-eminent CEE retail developer • Prime Kapital employs an unique, vertically integrated development approach that consistently results in high development yields • DJV provides co-inves
Slide 19: Macroeconomic Environment
Appendices MACROECONOMIC ENVIRONMENT Favourable macroeconomic backdrop in CEE countries with above Eurozone- average growth prospects and significant EU funds allocated for growth ensures continuous growth in the markets where MAS operates. Resilient GDP outlook in CEE, well above Eurozone-average….
Slide 20: Private Consumption in CEE
Appendices PRIVATE CONSUMPTION IN CEE Over the last two decades, consumption per capita in In the long-term, per capita growth in consumption CEE recorded some of the world’s highest growth rates with in CEE is expected to increase and continue to retail and residential segments of the property mark
Slide 21: Retail Segment Overview
Appendices RETAIL SEGMENT OVERVIEW Higher consumption is associated with higher rents, more retail space per capita and tighter valuation yields, leading to higher recurring rental income, more opportunities for retail development and capital appreciation. Consumption per capita in 2019 Prime rents
Slide 22: Modern vs. Traditional Trade
Appendices MODERN VS. TRADITIONAL TRADE Less affluent areas in Modern vs. traditional grocery trade (2020) CEE are behind in the 100% 90% modernisation process, 80% 32% 26% 16% 22% 36% with significant old retail 38% 70% space remaining – there 60% is still room for modern 50% 40% retail space to re
Slide 23: Bricks and Mortar Retail to Continue Rapid Growth Despite E-Commerce Advancements
Appendices BRICKS AND MORTAR RETAIL TO CONTINUE RAPID GROWTH DESPITE E-COMMERCE ADVANCEMENTS Given the expected growth in consumption, bricks and mortar Total retail consumption and distribution channel (bricks and mortar retail vs. online) in Romania (€) retail should continue its rapid growth even
Slide 24: Residential Segment Overview
Appendices RESIDENTIAL SEGMENT OVERVIEW Average area of living accommodation (m²/person) Enormous potential for residential developments. 50 Most of Romania’s urban 40 population benefits from 34 30 30 less than 50% of residential 26 22 area per person compared 20 17 16 18 to other European 10 count
Slide 25: Residential Pricing Affordability and Sustainability
Appendices RESIDENTIAL PRICING AFFORDABILITY AND SUSTAINABILITY Peak of 2008 2020 Current demand levels compared to those of 7,000 5.0 2008, are backed by robust fundamentals 4.5 with considerable 6,000 improvements in 4.0 purchasing power and 5,000 Average price per net m2 (€/m2) affordability rati
Slide 26: Glossary
Appendices GLOSSARY BREEAM/EDGE/LEED Independent third-party certification on the sustainability of Income property Property held to earn rental income individual buildings, communities and infrastructure projects Investment property Income property, Development property and Land bank CAGR Compound