Redefine Properties Limited · JSE:RDF
Redefine Properties — FY2022 Earnings Presentation
103 slides from Redefine Properties's earnings presentation, November 2022
Slide 1: Group annual results for the year ended 31 August 2022
Please follow our LinkedIn page for more details Group annual results for the year ended 31 August 2022
Slide 2: Strategic outcomes
Strategic outcomes Focusing on the variables under our control as we deliver on our strategic priorities GR IS OC OE ET Achieved Lifted Maintained employee Improved score in 2022 Completed refocus of loan-to-value active occupancy engagement score of 87% GRESB index results property asset platform r
Slide 3: GR Growing reputation
GR GR Growing reputation Positioning Redefine to contribute to a more inclusive, equitable and sustainable operating context Group annual results for the year ended 31 August 2022 33
Slide 4: Group key outcomes for 2022
Group key outcomes for 2022 GR ESG de-risks our portfolio to realise significant opportunities Environmental Social Governance ▪ An estimated 94 million kWh of ▪ Measured South Africa and Polish ▪ Placed second in EY’s 2022 energy saved through our solar PV socioeconomic impacts excellence in integr
Slide 5: Our socioeconomic impact – South Africa
Our socioeconomic impact – South Africa GR Living our purpose to create and manage spaces in way that changes lives ECONOMIC IMPACT EMPLOYMENT IMPACT R3.7 billion total investment R64.5 million specialised sector new sales R1.3 billion industrial sector new sales 12 850 jobs created R3.2 billion GDP
Slide 6: Our socioeconomic impact - Poland
Our socioeconomic impact - Poland GR Providing a baseline from which to measure future impacts ECONOMIC IMPACT SOCIAL IMPACT Legend 18% 0 – 250 000 OFFICE RETAIL 250 000 – 500 000 500 000 – 1 000 000 Construction phase Construction phase 1 000 000 – 1 500 000 EUR 6.0 million EUR 15.6 million 1 500 0
Slide 7: Building the future-ready Redefine of tomorrow
Building the future-ready Redefine of tomorrow GR Being who we say we are to all our stakeholders 2023 focus areas What holds us together? → Focus on diversity in our operations → Implement and refine our climate resilience framework → Enter into sustainable partnerships with key stakeholders, How w
Slide 8: IS Investing strategically
IS IS Investing strategically Shifting our thinking to the evolving relevance of real estate Group annual results for the year ended 31 August 2022 88
Slide 9: Group property asset platform
Group property asset platform IS Building a quality, diversified portfolio that delivers sustainable risk-adjusted returns Property assets Geographically diversified Group uses of cash flow of R12.9 billion under management portfolio R88.9 billion SA R58.9 billion EPP maturing debt repaid 4 940 (FY2
Slide 10: South Africa portfolio profile
South Africa portfolio profile IS A sizeable, well-diversified and high-quality portfolio Impact of portfolio repositioning Carrying value of properties Total GLA # R58.2 billion 3 865 thousand m² 25 000 315 302 350 (FY21 | R59.1 billion) (FY21 | 4 315 thousand m²) 296 272 258 300 20 000 15 854 15 0
Slide 11: South Africa portfolio key outcomes
South Africa portfolio key outcomes IS A diversified asset platform that is positioned for organic growth Weighted average exit cap rate per sector (core portfolio) Portfolio revaluation Active vacancy reduced to 1.4% 6.7% Specialised 9.1% (FY21 | -2.7%) (FY21 | 7.1%) Industrial 8.9% Offices 8.8% So
Slide 12: South Africa retail portfolio profile
South Africa retail portfolio profile IS Broad coverage of market to capture the emerging trends Type by value Carrying value Number of properties R24.0 billion 60 (FY21 | R24.4 billion) (FY21 | 68) 8% 15% Super regional Number of tenants GLA Regional 2 660 1 151 thousand m² Convenience (FY21 | 2 78
Slide 13: South Africa retail portfolio key outcomes
South Africa retail portfolio key outcomes IS Strategic focus to improving the performance metrics is yielding positive results Contribution to vacancy by type Annual trading density### Active vacancy R31 200 per m² 4.4% (HY20 | R29 700 per m²) (FY21 | 5.2%) Vacancy by type 17.2% 29.3% Super regiona
Slide 14: South Africa office portfolio profile
South Africa office portfolio profile IS High-quality portfolio to better weather the market down-turn cycle Value by grade Carrying value Number of properties R22.0 billion 101 (FY21 | R21.8 billion) (FY21 | 104) Premium Grade 12% A-Grade Number of tenants GLA Secondary Grade 1 076 1 115 thousand m
Slide 15: South Africa office portfolio key outcomes
South Africa office portfolio key outcomes IS Demand remains under pressure – although letting has improved on the back of a flight to quality Contribution to vacancy by grade Green Star certificates Active vacancy 140 certifications 14.4% Vacancy by grade (FY21 | 12.9%) Premium Grade 7.4% 16.1% A-G
Slide 16: South Africa industrial portfolio profile
South Africa industrial portfolio profile IS Defensive through the cycle Type by value Carrying value Number of properties R11.6 billion 94 Warehousing (FY21 | R12.3 billion) (FY21 | 97) 10% Light manuf. 2% 17% Heavy Grade Indust. Number of tenants GLA 12% Industrial units 323 1 586 thousand m² 8% M
Slide 17: South Africa industrial portfolio overview key outcomes
South Africa industrial portfolio overview key outcomes IS Solid performance in a competitive market Contribution to vacancy by type Green Star certificates Active vacancy 15 certifications 3.1% Five in progress (FY21 | 4.6%) 1.1% Vacancy by type 24.5% Warehousing 11.1% Light manufacturing 1.0% 3.2%
Slide 18: Alternative income streams
Alternative income streams IS Developing new sustainable revenue sources – revenue FY22 R83 million vs. FY21 R76 million Brand goes here LED network expansion Tenant ISP and fibre solution In-mall gamification Current network includes 25 large format roadside/in-mall Alignment with IT in place and
Slide 19: International portfolio profile
International portfolio profile IS Exposure to Polish retail and logistics provides geographic diversification Value by sector (%) Platform carrying value EPP property asset base R30.0 billion R25.1 billion (FY21 | R12.6 billion) (FY21 | R6.5 billion) 13.0% 3.0% Retail Office Industrial European Log
Slide 20: International portfolio key outcomes
International portfolio key outcomes IS Continued progress to simplify, de-risk and refocus the asset platform Economic risk: Poland vs emerging markets average EPP delisted and the reorganisation EPP disposed of its Power Park Opole Russia 7.4 of its balance sheet completed and its equity share in
Slide 21: EPP Core portfolio key outcomes
EPP Core portfolio key outcomes IS Solid outcome from a stabilised asset base Percentage of EPP’s Core* GLA by retail category Valuation of EPP Core* Vacancy of EPP Core* Fashion & accessories 31.6% Food/groceries/supermarkets 27.2% R16.8 billion 3.5% Entertainment 8.2% DIY 7.9% Electronics 7.3% Wei
Slide 22: EPP joint venture key outcomes
EPP joint venture key outcomes IS The establishment of the M1 JV and EPP Community JV generated liquidity of R3.1 billion 208 leases representing 64% of GLA and 55% of NOI extended beyond the maturity of the M1 master M1 joint venture 50.0% lease in April 2024 Ownership and management of the ent
Slide 23: ELI key outcomes
ELI key outcomes IS Robust demand from tenants while yield compression is stabilising Geographical spread Carrying value of properties Active vacancy R12.2 billion 6.5% (FY21 I R9.6bn) (FY21 I 3.9%) Tricity Active weighted average Active income producing GLA unexpired lease term by GLA Białystok Szc
Slide 24: Post-investment evaluation of EPP
Post-investment evaluation of EPP IS The key strategic imperatives have largely been delivered upon Strategic imperative Post-implementation review Gaining direct exposure to prime Polish retail assets ⚫ Redefine owns 95.5% of EPP that actively manages approximately 1 million m2 of prime Polish re
Slide 25: Group committed capital allocation priorities
Group committed capital allocation priorities IS Allocating capital to position asset platform for sustained value creation Improving: R194 million Expanding: R1 368 million High → Revenue-enhancing operational capital expenditure → European logistics developments → Solar PV, smart metering, water e
Slide 26: Building the future-ready Redefine of tomorrow
Building the future-ready Redefine of tomorrow IS Creating smart, sustainable and relevant spaces Repositioned property asset platform 2023 focus areas → Continuously improve, expand and protect asset platform South African assets 66% → Stabilise EPP 28% Retail 25% Office 13% Industrial → Provide a
Slide 27: OC Optimising capital
OC OC Optimising capital Creating a sustainable funding structure to support value creation Group annual results for the year ended 31 August 2022 27 27
Slide 28: Group key outcomes for 2022
Group key outcomes for 2022 OC Improved balance sheet strength that supports sustainable value creation Sources of cash flow of R12.9 billion LTV Interest cover ratio reduced to 40.2% improved to 2.8x Non-core asset disposals net of 6 085 (FY21 | 42.4%) (FY21 | 2.6x) exit fees EPP reorganisation 3 3
Slide 29: SA REIT loan-to-value ratio within range
SA REIT loan-to-value ratio within range OC Targeted medium-term LTV range 38% to 41% 42.4% 4.6% 40.2% -3.4% 2.6% -3.1% 0.8% -2.2% -1.5% FY21 Group LTV Cashflow from Reduction initiatives Derivatives Valuations Capex and expansion EPP* Dividends net of DRIP FY22 Group LTV operations LTV sensitivity
Slide 30: Stable funding profile
Stable funding profile OC Meaningful progress made on debt refinancing in a constrained capital environment → R23.3 billion of debt refinanced during FY22 (SA | R18.0 bn and EPP | R5.3 bn) → FY23 maturities of R4.2 billion (SA | R1.3 bn and EPP | R2.9 bn) progressing well → Refinancing of EPP share
Slide 31: Interest rate hedging
Interest rate hedging OC Maintaining a stable and gradual hedging maturity profile within the policy (75%) → Inflation risk coupled with rising interest rates will impact funding costs Implied and forecasted repo rate 2022 2023 2024 → 82.9% of total group debt hedged for an average term of 1.5 years
Slide 32: Diversification of funding sources
Diversification of funding sources OC No more than 15% single counter-party exposure risk Sources of debt FY22 Sources of debt FY20 Standard Bank 13% Standard Bank 20% Nedbank 12% RMB 12% Listed bonds 19% Listed bonds 12% Unlisted DCM* 11% RMB 15% Santander 6% ABSA 6% Nedbank 14% PKO BP 5% Erste 5%
Slide 33: Building the future-ready Redefine of tomorrow
Building the future-ready Redefine of tomorrow OC Positioning the funding platform to cope with scarce and costly capital Drivers of the cost of capital 12 2023 focus areas 10 South Africa → Expand sustainability-linked funding 8 6 → Resolve EPP’s funding challenges 4 → Improve funding flexibility 2
Slide 34: OE Operating efficiently
OE OE Operating efficiently Working smart to deliver quality financial outcomes Group annual results for the year ended 31 August 2022 34 34
Slide 35: Group key outcomes for 2022
Group key outcomes for 2022 OE Focusing on the variables under our control to stabilise our operating margin Group distributable income analysis Active SA portfolio operating margin EPP core portfolio operating margin 4 000 3 627 81.9% 84.0% 3 500 (FY21 | 82.6%) 2 798 2 877 3 000 2 500 2 000 3 603 S
Slide 36: Group financial headlines
Group financial headlines OE 10.8% total return delivered in FY22 Distributable income per share Distributable income per share Dividend per share for the year CPS 60 51.5 52.9 53.7 53.71 cents 42.97 cents (FY21: 52.96 cents) (FY21 | 60.12 cents) 50 40 18.0 27.4 26.7 Distributable 30 CPS income incr
Slide 37: Group contributors to changes in distributable income
Group contributors to changes in distributable income OE Post-pandemic environment experiencing uneven recovery with some upside Headwinds Tailwinds (203) 953 323 3 627 280 2 877 67 128 5 19 25 33 34 35 4 (151) (52) FY 2021 NOI disposed properties Capitalised interest Lango Realised foreign exchange
Slide 38: Group change in NAV per share
Group change in NAV per share OE Stabilisation of asset values and ELI capital uplift driving growth in NAV EPP 70.0 EUR ELI 18.7 EUR Lango 0.3 USD EUR (2.5) Chariot (0.3) EUR Vendor loans ZAR 1.7 ZAR 0.4 AUD 0.5 EUR (18.1) Journal (2.6) AUD Properties ZAR 7.5 EUR 7.9 USD (0.3) AUD 0.4 45.3 9.2 8.3
Slide 39: Dividend payout policy
Dividend payout policy OE Balancing stakeholder expectations and liquidity requirements with REIT compliance Payout ratio considerations applied to distributable income: → Earnings recognised for IFRS purposes but not received in cash → Funding to maintain and defensively reposition our properties →
Slide 40: Our focus needs to shift to dealing with the aftermath of the pandemic
Our focus needs to shift to dealing with the aftermath of the pandemic OE Defending the operating margin in a rising inflation environment SOUTH AFRICA EPP % maximise return on new investments limit the impact of rising energy costs through implementation of bulk buying become more efficient (focu
Slide 41: Building the future-ready Redefine of tomorrow
Building the future-ready Redefine of tomorrow OE Combining data and people competencies to deliver stakeholder experiences with a human touch Digital ratio journey 2023 focus areas → Execute digital transformation → Drive organic growth Base Digital ratio Digital ratio Digital ratio → Build broad-b
Slide 42: ET Engaging talent
ET ET Engaging talent Businesses do not create value, people do Group annual results for the year ended 31 August 2022 42 42
Slide 43: Key outcomes for 2022
Key outcomes for 2022 ET Creating an environment where talented people do their best work Permanent staff turnover Learnership Programme Creating and delivering mutual, sustained value through 11% - below national 92.5% average of 15%* graduation rate since inception Flexible working policy EPP exec
Slide 44: Building the future-ready Redefine of tomorrow
Building the future-ready Redefine of tomorrow ET Harnessing the power of Redefine to deliver our purpose to be more inclusive, sustainable and resilient To be the leading skills development REIT Where people grow 2023 focus areas Individual → Build culture of innovation and exploration → Transition
Slide 45: Wrap-up
Wrap-up Adapting our strategy and agilely executing our strategic priorities will set us apart Group annual results for the year ended 31 August 2022 45 45
Slide 46: Key takeouts
Key takeouts We did what we said we would do → We live by our values through our stakeholder centric value-creation strategy → Our ESG journey is well underway, and we are actively incorporating it into our leasing, property management, capital sourcing and allocation → We are serious about ethics a
Slide 47: In closing
In closing The scene is set for a new era of low growth, elevated inflation and normalised interest rates → The fundamentals of commercial property are shaped by Redefine’s investment proposition business confidence, interest rate expectations and economic growth → We face a situation that will nece
Slide 48: SI Supplementary information
SI SI Supplementary information Group annual results for the year ended 31 August 2022 48 48
Slide 49: Contents
Contents PAGE PAGE SI GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME SOUTH AFRICA – OPERATING ACTIVITIES Redefine’s diversified property asset platform 50 South Africa portfolio overview 77 Reconciliation of property assets 51 South Africa sectoral and geographical split 78 Reconciliation of cash ge
Slide 50: Redefine’s diversified property asset platform
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Redefine’s diversified property asset platform SI Portfolio valued at R88.9 billion Direct South Africa property portfolio Direct international properties Property portfolio 100.0% R58.2bn European Logistics platform 46.5% R3.8bn Retail R24.0bn Lango Re
Slide 51: Reconciliation of property assets
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Reconciliation of property assets SI Head RDF Europe Property assets (Rm) Retail Office Industrial Specialised Office & ELI^ EPP Lango Journal Total FY21 property asset platform* 24 497 21 876 12 303 567 1 293 3 974 6 489 165 1 923 73 087 Deployment of
Slide 52: Reconciliation of cash generated to total distributable income
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Reconciliation of cash generated to total distributable income SI 2022 2021 Rm Rm Net cash inflow from operating activities (as per statement of cashflows) 2 627 2 293 Items in cash flows from operating activities, but related to distributable income 20
Slide 53: Funds from operations
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Funds from operations SI SA REIT funds from operations (SA REIT FFO) per share Rm Rm 2022 2021 Profit or loss per IFRS Statement of Comprehensive Income (SOCI) attributable to the parent 8 691 2 731 Adjusted for:- Accounting/specific adjustments:- (2 82
Slide 54: Funds from operations | continued
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Funds from operations | continued SI 2022 2021 SA REIT FFO: 3 662 2 395 Number of shares outstanding at end of period (net of treasury shares) (millions) 6 752 5 433 SA REIT FFO per share (cents) 54.23 44.08 Company-specific adjustments (Rm) (35) 482 No
Slide 55: South Africa distributable income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa distributable income analysis SI Rm Retail Office Industrial Specialised Head office Total Property portfolio revenue 3 312 2 873 1 492 66 - 7 743 Operating costs (1 562) (1 005) (479) (9) - (3 055) Expected credit losses – trade receivable
Slide 56: International distributable income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME International distributable income analysis SI Europe Africa Australia UK Rm RDF EUR USD AUD GBP Total EPP Europe funding funding Lango funding Journal funding international Contractual rental income 810 - - - - - - - 810 Investment income - - - - 5 - -
Slide 57: South Africa portfolio income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa portfolio income analysis SI FY22 FY21 Change Active portfolio NOI contribution Rm Rm % Net operating income from investment properties 4 789 4 818 -0.6% 1% Net operating income from acquired / development properties 47 15 213.3% 19% Net op
Slide 58: South Africa active portfolio expenditure analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa active portfolio expenditure analysis SI Rm Change % FY21 946 Increased net municipal costs relate to vacancies in the office portfolio for triple net leases and council revaluations 7 3.0% Net electricity cost lower due to favourable counc
Slide 59: South Africa COVID-19 tenant relief
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa COVID-19 tenant relief SI FY22 FY21 Rm Rm Discounts given 3.0 98.9 Retail (0.4) 69.5 Office 3.4 24.6 Industrial 0.0 4.8 Deferrals given 0.0 26.8 Retail 0.0 13.8 Office 0.0 6.3 Industrial 0.0 6.7 Gross discounts and deferrals 3.0 125.7 Retai
Slide 60: Group arrears and bad debts
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Group arrears and bad debts SI FY22 FY21 FY20 Rm Rm Rm Net arrears including municipal recoveries Arrears 653.8 728.2 792.4 Less: Expected credit loss (ECL) provision (243.7) (327.7) (402.7) Total net arrears 410.1 400.5 389.7 Rm B/S I/S charge B/S I/S
Slide 61: Income hedging position by currency
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Income hedging position by currency SI 2023 2024 2025 EUR EUR amount (€m) 38.0 17.0 7.5 FEC rate (R: €1) 22.4 23.9 26.2 Group annual results for the year ended 31 August 2022 61
Slide 62: Funding snapshot
FUNDING Funding snapshot SI Funding snapshot FY22 FY21 SA REIT BPR – LTV (min required <50%) 40.2% 42.4% Average term of debt 3.9 years 2.7 years % of debt secured 83.9% 69.6% % of asset secured* 71.9% 64.7% Weighted average cost of ZAR debt 8.7% 8.1% Weighted average cost of FX debt 2.6% 1.9% Weigh
Slide 63: Loan-to-value calculation
FUNDING Loan-to-value calculation SI FY22 FY21 SA REIT BPR LTV ratio Rm Rm Property-related assets 88 931 73 087 Total assets 92 406 75 635 Less: Cash and cash equivalents (1 765) (1 356) Less: Derivative financial assets (609) (291) Less: Trade and other receivables (1 101) (901) Net debt 35 786 31
Slide 64: Currency analysis of property assets and borrowings
FUNDING Currency analysis of property assets and borrowings SI FY22 FY21 Property Property assets Debt NAV hedge Weighted avg assets Debt NAV hedge Weighted avg Currency Rbn Rbn % cost % Rbn# Rbn# % cost % Net ZAR* 58.9 19.1 32.4% 8.7% 60.4 21.6 35.8% 8.1% AUD* - - 0.23% 0.0% 1.9 0.9 47.4% 2.5% EUR*
Slide 65: Analysis of secured and unsecured debt to property assets
FUNDING Analysis of secured and unsecured debt to property assets SI Assets Debt LTV Rm Rm Secured 63 273 31 608 50.0% South Africa 41 620 20 778 49.9% Offshore 21 653 # 10 830 50.0% Unsecured 25 658 4 301 16.8% South Africa** 15 045 4 285 28.5% Offshore 10 613 16 0.2% Group LTV without CCS 88 931 3
Slide 66: Debt funding profile
FUNDING Debt funding profile SI Debt and hedging maturity profile Secured debt and assets 100% 12 84% 9.6 72% 10 80% 70% 67% 66% 65% 67% 68% 70% 65% 8 6.8 6.3 60% 6.0 5.7 6.2 5.5 6 4.3 4.3 3.8 40% Rbn % 4 2.7 2 20% 0.1 0.6 0.6 0 0% 2022 2023 2024 2025 2026 2027 2028 2029 2030 FY18 FY19 FY20 FY21 FY2
Slide 67: Disposals | Non-core property assets
INVESTING ACTIVITIES Disposals | Non-core property assets SI Date Proceeds Property Province of transfer GLA (m²) (R000) Yield (%) Retail 90 616 1 111 125 10.0 Shoprite Park Western Cape 27-Sep-21 27 967 261 025 11.4 Riverside Mall Western Cape 17-Sep-21 9 588 126 100 11.0 Blue Downs Western Cape 20
Slide 68: Disposals | Non-core property assets | continued
INVESTING ACTIVITIES Disposals | Non-core property assets | continued SI Date Proceeds Property Province of transfer GLA (m²) (R000) Land* 386 878 Brackengate 2 Mainland Western Cape Various - 162 376 Atlantic Hills (55% share) Western Cape Various - 81 418 Golf Air Park III# Western Cape 29-Nov-21
Slide 69: Non-current assets held for sale
INVESTING ACTIVITIES Non-current assets held for sale SI Value South Africa properties Province Sector GLA (m²) (R000) Yield (%) Industrial 36 750 131 485 9.8% 66 Michelin Street Gauteng Industrial 6 943 12 835 0.0% 28 Stevenson Road Eastern Cape Industrial 4 674 8 330 5.8% Strydom Industrial Park G
Slide 70: South Africa | Acquisitions
INVESTING ACTIVITIES South Africa | Acquisitions SI Cost of Date acquisition Property Province of transfer GLA (m²) (R000) Yield (%) Retail 5 553 159 044 7.9% Kyalami Corner JV (20% share) Gauteng 1-Sep-21 5 553 159 044 7.9% Industrial 27 410 - Erf 179205 (land)* Western Cape 26-Nov-21 27 410 - Tota
Slide 71: South Africa new developments
INVESTING ACTIVITIES South Africa new developments SI Development Projected Initial Total value of costs incurred Still to development yield work completed** during 2022*** spend Completion Property Province GLA (m²) Sector cost (R000) (%) (R000) (R000) (R000) date South Africa developments complete
Slide 72: South Africa refurbishments completed
INVESTING ACTIVITIES South Africa refurbishments completed SI Projected Total value of redevelopment work completed Redevelopment Completion Redevelopments completed* Province cost (R000)* (R000)** costs*** (R000) date Retail 59 098 48 635 47 460 Chris Hani Crossing (insurance rebuild) Gauteng 31 75
Slide 73: South Africa refurbishments in progress
INVESTING ACTIVITIES South Africa refurbishments in progress SI Projected Total value of redevelopment work completed** Redevelopment Completion Still to spend Redevelopments* Province cost (R000) (R000) costs (R000) date (R000) Retail 56 827 7 987 7 987 48 840 Oakfields Shopping Centre Gauteng 9 50
Slide 74: South Africa new developments and refurbishments future committed pipeline
INVESTING ACTIVITIES South Africa new developments and refurbishments future committed pipeline SI Projected development Budgeted initial Project start Redevelopments* Province cost (R000)* yield (%) date East Rand Mall (50% share) Gauteng 58 212 2.24 TBC Goldenwalk - Tenant reconfiguration Gauteng
Slide 75: South Africa infrastructure projects
INVESTING ACTIVITIES South Africa infrastructure projects SI Total value of Projected work infrastructure completed Infrastructure Completion Infrastructure projects completed* Province cost (R000)* (R000)** costs*** (R000) date Industrial 518 869 469 988 47 732 S & J Industrial (90% share) – Infras
Slide 76: South Africa solar PV projects in progress
INVESTING ACTIVITIES South Africa solar PV projects in progress SI Plant Size Capex First year Building (kWp) (Rm) return (%) Retail 11 550 124 17.3% South Coast Mall 3 221 31 16.6% Goldfields Mall (parking and expansion) 2 067 28 17.4% East Rand Mall expansion (50% share) 1 726 19 18.9% Wonderboom
Slide 77: South Africa portfolio overview
SOUTH AFRICA – OPERATING ACTIVITIES South Africa portfolio overview SI Aug 22 Aug 21 Description Retail Office Industrial Specialised Total Total Number of properties 60 101 94 3 258 272 Number of tenants 2 660 1 076 323 1 4 060 4 214 Total GLA (m²) (thousands) 1 151 1 115 1 586 13 3 865 4 315 Total
Slide 78: South Africa sectoral and geographical split
SOUTH AFRICA – OPERATING ACTIVITIES South Africa sectoral and geographical split SI Valuation GLA GMR Valuation GLA GMR Sector (R'000) No. of Properties (m²) (R) Province (R'000) No. of Properties (m²) (R) Retail 24 021 055 60 1 151 067 198 358 Gauteng 42 945 373 184 2 747 664 337 049 Office 21 9
Slide 79: South Africa sector type analysis
SOUTH AFRICA – OPERATING ACTIVITIES South Africa sector type analysis SI Valuation GLA GMR Retail (R'000) (m²) (R) Type by value Type by GLA Type by GMR Super regional 3 530 900 123 868 28 740 591 Regional 8 447 900 397 331 65 178 886 8% 15% 13% 11% 10% 14% Convenience 10 184 120 477 311 84 765 6
Slide 80: South Africa top 10 properties and tenants of total portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa top 10 properties and tenants of total portfolio SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Centurion Mall Gauteng 3 473 000 112 241 Macsteel 550 138 27 277 504 Alice Lane Gauteng 3 463 160 70 360 Government 169 000 24 058 572 115 We
Slide 81: South Africa top 10 retail properties and tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa top 10 retail properties and tenants SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Centurion Mall Gauteng 3 473 000 112 241 Shoprite 79 502 10 774 542 Kenilworth Centre Western Cape 1 474 200 52 782 Pick n Pay 78 561 9 436 255 Golden Wa
Slide 82: South Africa top 10 office properties and tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa top 10 office properties and tenants SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Alice Lane Gauteng 3 463 160 70 360 Government 129 754 18 175 050 115 West Street Gauteng 1 500 100 36 546 Alexander Forbes 40 054 13 786 451 Black River
Slide 83: South Africa top 10 industrial properties and tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa top 10 industrial properties and tenants SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) 233 Barbara Road Gauteng 986 740 120 277 Macsteel 550 138 27 277 504 Hirt & Carter Cornubia KwaZulu-Natal 674 750 47 718 Hirt and Carter (South Afric
Slide 84: South Africa specialised properties
SOUTH AFRICA – OPERATING ACTIVITIES South Africa specialised properties SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Bedford Gardens Hospital Gauteng 368 500 12 817 Bedford Gardens Hospital 12 817 3 342 568 Park Central Gauteng 136 700 - - - - Loftus Park Hotel (25% share)* Gauteng 4
Slide 85: South Africa undeveloped land
SOUTH AFRICA – OPERATING ACTIVITIES South Africa undeveloped land SI Value Property# Province (R000) S & J Industrial Estate (90% share) Gauteng 732 306 Atlantic Hills (55% share) Western Cape 153 560 Galleria Gauteng 141 120 Brackengate 2 Mainland Western Cape 76 903 Wilgespruit – Land Gauteng 60 0
Slide 86: South Africa retail portfolio | Turnover performance by business type
SOUTH AFRICA – OPERATING ACTIVITIES South Africa retail portfolio | Turnover performance by business type SI Turnover comparison (Rm) 30 000 107% 25 000 20 000 15 000 112% 102% 10 000 5 000 103% 102% 87% 120% 92% 117% 127% 121% 142% 91% 0 Total Essential Apparel Department Hard hit Bottle Electronic
Slide 87: South Africa retail portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa retail portfolio SI Market / Trends Forward looking priorities → Recovery of retail spend continues with MSCI showing 9.8% growth in trading density. → Tenant retention, WAULT and vacancy reduction continues to be a key priority for Redefine portfolio
Slide 88: South Africa office portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa office portfolio SI Market / Trends Forward looking priorities → The flight to quality persists with increased demand for higher end A- and P-grade assets → Exploring battery energy storage solutions to replace, supplement and / or reduce costs of gen
Slide 89: South Africa industrial portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa industrial portfolio SI Market / Trends Forward looking priorities → Increasingly transportation costs drive diversification of hub & spoke warehouse networks – → Launch the Industrial Green Lease with measurable tenant incentives for Scope 3 carbon a
Slide 90: EPP portfolio overview (including JVs)
POLAND – EPP OPERATING ACTIVITIES EPP portfolio overview (including JVs) SI EPP Core EPP JVS Community Galeria Henderson Description M1 JV JV Młociny JV JV EPP Total % EPP Share in JV 100% 50% 53.07% 70% 30% Number of properties 8 9 15 1 3 36 Number of tenants 830 581 893 267 48 2 570 Total GLA (m²)
Slide 91: M1 JV
POLAND – EPP OPERATING ACTIVITIES M1 JV SI EPP and RDF Europe combined shareholding: 50.0% Portfolio metrics (at 100%) Debt metrics (at 100%) Carrying value Number of properties Weighted average length of debt Weighted average cost of debt R11.4 billion 9 retail 2.1 years 2.6% Weighted average Weigh
Slide 92: EPP Community JV
POLAND – EPP OPERATING ACTIVITIES EPP Community JV SI EPP shareholding: 53.07% Portfolio metrics (at 100%) Debt metrics (at 100%) Carrying value Number of properties Weighted average length of debt Weighted average cost of debt R11.2 billion 12 retail and 3 office 2.9 years 3.5% Weighted average Wei
Slide 93: Galeria Mlociny JV
POLAND – EPP OPERATING ACTIVITIES Galeria Mlociny JV SI EPP shareholding: 70% Portfolio metrics (at 100%) Debt metrics (at 100%) Carrying value Number of properties Weighted average length of debt Weighted average cost of debt R6.6 billion 1 retail 2.7 years 3.1% Weighted average Weighted average de
Slide 94: Henderson JV
POLAND – EPP OPERATING ACTIVITIES Henderson JV SI EPP shareholding: 30% Portfolio metrics (at 100%) Debt metrics (at 100%) Carrying value Number of properties Weighted average length of debt Weighted average cost of debt R4.1 billion 3 office 1.8 years 1.6% Weighted average Weighted average debt Vac
Slide 95: EPP property platform
POLAND – EPP OPERATING ACTIVITIES EPP property platform SI Valuation Valuation Valuation Valuation m² (EURm) (Rm) m² (EURm) (Rm) EPP Core 341 073 993 16 845 EPP CommunityJV 318 120 648 10 990 1 Galeria Echo Kielce Retail 71 964 214 3 643 1 Park Rozwoju I&II Office 34 435 72 1 223 2 Galaxy Retail 56
Slide 96: EPP top 10 properties and tenants of total portfolio
POLAND – EPP OPERATING ACTIVITIES EPP top 10 properties and tenants of total portfolio SI Value Value GMR Property (EURm) (R000) GLA m² Tenant GLA m² (EUR) GMR (R) Galaxy 272 4 605 670 56 300 Auchan Polska SP. Z O.O. 76 093 760 864 12 904 707 Superhobby Market Budowlany Pasaż Grunwaldzki 235 3 985 7
Slide 97: EPP lease expiry profile
POLAND – EPP OPERATING ACTIVITIES EPP lease expiry profile SI EPP EPP Galeria Młociny Henderson Total Lease expiry profile by GLA (m²) Core M1 JV Community JV JV JV EPP 2023 20 855 8 032 20 615 7 586 20 656 77 744 2024 18 427 128 350 40 012 11 647 9 487 207 923 2025 31 020 49 988 43 843 16 529 17 83
Slide 98: ELI JV
POLAND – ELI OPERATING ACTIVITIES ELI JV SI Redefine Europe shareholding: 46.5% Platform overview Debt metrics (at 100%) Market profile Weighted average length of debt Weighted average cost of debt 4.9 years 2.4% 29% Established market Emerging market ICR % of debt hedged 71% 3x 87.4%# Property type
Slide 99: ELI developments completed
POLAND – ELI OPERATING ACTIVITIES ELI developments completed SI GLA Development cost Development Fair value Fair value Letting Change Property (m²) (EURm) cost (Rm) (EURm) (Rm) (%) (%) BTS Action Tychy^# 60 776 38 650 60 1 011 100.0% 56.0% Wroclaw City phase I 35 508 25 427 38 647 73.2% 51.0% Rzeszo
Slide 100: ELI developments under construction
POLAND – ELI OPERATING ACTIVITIES ELI developments under construction SI GLA Development cost Development cost Pre-let Anticipated Property (m²) (EUR’000) (R’000) % completion date Kraków Skawina 17 737 12 661 214 738 95.4% Oct-22 Kraków North phase I 31 940 29 347 497 473 66.0% Dec-22 Toruń A 19 97
Slide 101: ELI future developments
POLAND – ELI OPERATING ACTIVITIES ELI future developments SI Total GLA Property (m²) Nowa Huta phase Iib 11 131 Tychy (multi-let) expansion 4 017 Opole III phase II 15 434 Wroclaw City phase II 8 115 Warsaw Kinetyczna 55 787 Warsaw West (Błonie) phase II 17 032 Kraków North phase II 26 465 Łódź East
Slide 102: Disclaimer
Disclaimer This presentation may include forward-looking statements which statements are not based on historical information, but rather premised on certain assumptions, risks, estimates and/or uncertainties (“risks and uncertainties”), which are taken into consideration as at date of this presentat
Slide 103: Thank you
Thank you Please follow our LinkedIn page for more details Group annual results for the year ended 31 August 2022 103 103