Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — H1 2018 Earnings Presentation
83 slides from Emira Property Fund's earnings presentation, February 2018
Slide 1: Results for the six months to 31 December 2017
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017
Slide 2: Agenda
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 1 AGENDA GEOFF JENNETT GREG BOOYENS ULANA VAN BILJON GEOFF JENNETT OVERVIEW FINANCIALS PORTFOLIO INVESTMENTS › Key metrics › Distribution › Direct SA portfolio › Capex and › 5-year track statement performance disposals record › Balan
Slide 3: Overview
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017
Slide 4: Key metrics at December 2017
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 3 KEY METRICS AT DECEMBER 2017 DISTRIBUTIONS NAV TENANT PER SHARE PER SHARE VACANCIES RETENTION 70.65c 1761c 4.5% 77% CAPEX ACQUISITIONS DISPOSALS PROJECTS LTV USD8.4m R236.5m R357m 37.2%
Slide 5: 5-year track record
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 4 5-YEAR TRACK RECORD 2 000 72 1 800 70 1 600 1 732 1 801 1 759 1 761 68 1 400 1 650 66 1 621 1 200 1 430 1 358 1 429 1 346 64 1 000 62 800 60 600 58 400 56 200 54 - 52 DEC 13 DEC 14 DEC 15 DEC 16 DEC 17 SHARE PRICE NAV (LHS) DISTRIB
Slide 6: Financials
FINANCIALS GREG BOOYENS CFO EMIRA PROPERTY FUND
Slide 7: Enyuka
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 6 ENYUKA Deconsolidation Equity Comparatives accounted reclassified
Slide 8: Distribution statement
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 7 DISTRIBUTION STATEMENT R’000 DEC 16 DEC 17 % CH Revenue 844 242 840 678 (0.4) Property expenses (325 657) (303 743) (6.7) Net direct property income 518 585 536 935 3.5 Net property expenses to revenue ratio (%) 38.6 36.1 Gross pro
Slide 9: Distribution statement continued
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 8 DISTRIBUTION STATEMENT continued R’000 DEC 16 DEC 17 % CH Net operating income b/f 471 758 490 023 3.9 Income from investments Enyuka 34 140 35 985 5.4 Growthpoint Australia (GOZ) 29 216 29 491 0.9 USA – 2 740 >100.0 Net interest c
Slide 10: Balance sheet
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 9 BALANCE SHEET R’000 DEC 16 DEC 17 % CH Investment properties 12 671 12 727 0.4 Investments Enyuka 585 614 5.0 GOZ 924 941 1.8 USA – 100 >100.0 Other assets 384 531 38.3 Total assets 14 564 14 913 2.4 Interest-bearing debt 5 378 5 4
Slide 11: 1.5% increase in NAV per share
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 10 NET ASSET VALUE PER SHARE 1 800 12 9 1 761 18 1 750 (4) 1 735 (7) (2) 1 700 71 74 1 690 1 650 1 661 1 600 Jun 17 Change in # of Revaluation of Revaluation of Foreign exchange Revaluation of Change in Dec 17 shares properties GOZ d
Slide 12: Debt funding mix
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 11 DEBT FUNDING MIX 700 FACILITY CAPITAL BALANCE CAPITAL AVAILABLE 600 500 400 Rm 300 200 100 - Feb Mar Mar Mar May May May May Aug Aug Sep Sep Nov Mar Mar Jun Sep Sep Sep Nov Nov Jun Sep Nov May Sep 18 18 18 18 18 18 18 18 18 18 18
Slide 13: Interest rate swap profile
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 12 INTEREST RATE SWAP PROFILE 1 200 1 000 800 Rm 600 400 200 - JUN 18 DEC 18 JUN 19 DEC 19 JUN 20 DEC 20 JUN 21 DEC 21 JUN 22 DEC 22 JUN 23 JUN 24 DEC 24 Hedged Weighted average Weighted average debt duration to expiry all in interes
Slide 14: Direct SA portfolio performance
DIRECT SA PORTFOLIO PERFORMANCE ULANA VAN BILJON COO PROPERTY FUND
Slide 15: Property portfolio summary
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 14 PROPERTY PORTFOLIO SUMMARY NUMBER OF PROPERTIES 180 164 150 120 146 141 148 146 142 111 60 0 DEC 10 DEC 11 DEC 12 DEC 13 DEC 14 DEC 15 DEC 16 DEC 17 NUMBER OF PROPERTIES PER SECTOR – 2016 VS 2017 80 60 60 46 44 43 40 15 23 22 20 0
Slide 16: Property portfolio summary: sectoral split
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 15 PROPERTY PORTFOLIO SUMMARY: SECTORAL SPLIT 45% 2016 VALUE SPLIT OFFICE 44% 2017 VALUE SPLIT PER SECTOR (%) 40% PER SECTOR (%) 41% URBAN RETAIL R12.6bn INDUSTRIAL R12.6bn 15% 15% 32% 36% 31% OFFICE 33% 2016 GLA SPLIT 2017 GLA SPLIT
Slide 17: Property portfolio summary: average values
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 16 PROPERTY PORTFOLIO SUMMARY +7% AVERAGE VALUE PER m² 20 000 16 541 14 547 14 910 15 801 15 000 11 586 12 370 R/m2 10 000 5 255 5 362 5 000 0 OFFICE URBAN RETAIL INDUSTRIAL TOTAL DEC 16 DEC 17 AVERAGE VALUE PER PROPERTY 250 +24% +13
Slide 18: Office sector exposure
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 17 OFFICE SECTOR EXPOSURE AVERAGE VALUE 73 NUMBER OF 46 2011 R52m PER PROPERTY R119m PROPERTIES 2017 (Rm) 2% 20% P-GRADE 35% GRADE OF OFFICE 37% A-GRADE GRADE OF OFFICE PORTFOLIO (%) B-GRADE PORTFOLIO (%) 61% 2011 C-GRADE 2017 45%
Slide 19: Vacancy profile by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 18 VACANCY PROFILE BY GLA (%) 18% 16.1% 16% 14% 12% 10% 9.3% 9.4% 8% 7.0% 6% 4.7% 4.5% 3.4% 3.1% 4% 2.2% 1.7% 2.1% 2% 1.2% 0% OFFICE URBAN RETAIL INDUSTRIAL TOTAL DEC 15 DEC 16 DEC 17 Office Contributors Largest vacancies Urban retai
Slide 20: Tenant retention
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 19 TENANT RETENTION (%) 100% 80% 83% 83% 77% 82% 82% 60% 72% 73% 71% 70% 75% 66% 40% 20% 0% m² NO. OF LEASES GROSS RENTALS DEC 15 DEC 16 DEC 17 Expiries of 126 254m² equals 285 leases or R14.8m gross rentals per month
Slide 21: Major lease expiries by gross rental: 1H18
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 20 10 MAJOR LEASE EXPIRIES BY GROSS RENTAL: 1H18 PROPERTY TENANT LEASE END GLA (m²) STATUS 12 Baker Street / Vacated Sasol Aug 17 10 239 2 Sturdee Avenue (Residential conversion) Tuinhof Trans Caledon Tunnel Dec 17 3 757 Renewed – 1
Slide 22: Lease expiry profile by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 21 LEASE EXPIRY PROFILE BY GLA (%) 50% 47.8 Hundreds 45% 42.9 40% 37.4 35% 30% 25% 23.9 22.4 20.8 19.6 20% 15.4 15.3 14.3 15% 10.7 9.3 10% 7.1 4.9 4.5 5% 1.5 0.6 0.4 0.2 0.7 0.3 0% VACANCY VACATED DEC EXPIRIES ROLLED YEAR 1 YEAR 2 YE
Slide 23: Reversions – total (gross rentals)
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 22 REVERSIONS – TOTAL (GROSS RENTALS) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL (DECREASE) % Office 41 609 136.38 129.48 -5.1 Urban retail 32 826 161.21 159.88 -0.8 Industrial 64 127 53.79 53.16 -1.2 Total Dec 17
Slide 24: Year-on-year like-for-like growth in net income
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 23 YEAR-ON-YEAR LIKE-FOR-LIKE GROWTH IN NET INCOME (static portfolio) (%) 14% 12.2% 12% 10% 7.9% 7.9% 7.8% 8% 6% 3.6% 4% 2% 0% -2% (1.6%) GROSS INCOME EXPENSES NET INCOME DEC 16 DEC 17 GROSS INCOME EXPENSES Improved take-up of vacanc
Slide 25: Retail trading statistics
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 24 RETAIL TRADING STATISTICS Trading density Foot count Spend per head growth growth growth 2.2% -0.6% 3.0%
Slide 26: Major lease expiries by gross rental: 2H18
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 25 10 MAJOR LEASE EXPIRIES BY GROSS RENTAL: 2H18 PROPERTY TENANT LEASE END GLA (m²) STATUS Wonderpark Builders Express Apr 18 2 483 Renewed – 5 years Negotiating with Morgan Creek Simba May 18 4 644 tenant – 2 years Wonderpark Cashbu
Slide 27: Major lease expiries by gross rental: FY19
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 26 10 MAJOR LEASE EXPIRIES BY GROSS RENTAL: FY19 PROPERTY TENANT LEASE END GLA (m²) STATUS Tuinhof Trans Caledon Tunnel Dec 18 3 757 Expecting to renew Corporate Park 66 PSG Wealth Jun 19 3 161 Expecting to renew 7 Naivasha Group M A
Slide 28: In summary
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 27 IN SUMMARY
Slide 29: Investments
INVESTMENTS GEOFF JENNETT CEO EMIRA PROPERTY FUND
Slide 30: Knightsbridge: P-Grade Bryanston
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 29 KNIGHTSBRIDGE: P-GRADE BRYANSTON PROJECT COST COMPLETION GLA 31 584m2 R820m Dec 19 Phase 1 GLA 12 385m2 R339.2m Sep 17/Oct 17 Occupancy GLA 8 401m² Phase 2 GLA 3 564m2 R107.0m Jun 18
Slide 31: Rosebank residential to rent
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 30 ROSEBANK RESIDENTIAL TO RENT › 280 units, focus on LSM 7 – 8 › JV with Feenstra Group › Development spend R121m › 75% co-ownership › Spend to date R12m (+R81m land) › Yield >10.5% › Handover/completion Jan 19
Slide 32: Capex projects in progress
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 31 CAPEX PROJECTS IN PROGRESS SPEND TO DATE (Rm) VALUE (Rm) COMPLETION Knightsbridge – Phase 2 13.5 106.5 Jun 18 The Bolton (12 Baker Street + 2 Sturdee Avenue) 93.0 201.7 Jan 19 Total 106.5 308.2 Yield on completion of Yield on a fu
Slide 33: Enyuka
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 32 ENYUKA 15 original 6 new assets R140m under On track for assets R618m acquired contract >R1.2bn assets R282m target
Slide 34: Disposals: 1H18
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 33 DISPOSALS: 1H18 5 office buildings R236.5m Forward yield and 1 industrial 7.6% building Premium +14.8%
Slide 35: Rebalancing
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 34 REBALANCING (%) DEC 2016 DEC 2017 GOZ 6.5 GOZ 6.5 US 0 US 0.8 OFFICE 40.5 OFFICE 38.2 URBAN RETAIL 35.3 URBAN RETAIL 36.0 INDUSTRIAL 13.4 INDUSTRIAL 13.3 RESIDENTIAL 0 RESIDENTIAL 0.6 LAND 0.2 LAND 0.3 RURAL RETAIL (ENYUKA) 4.1 RU
Slide 36: Previous FY18 outlook
EMIRA PROPERTY FUND RESULTS FOR THE YEAR ENDED JUNE 2017 35 PREVIOUS FY18 OUTLOOK › Responsible rebalancing continues › Groundwork for the future has been laid › Return to positive growth › Plan to increase offshore exposure
Slide 37: Emira launches USA investment strategy
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 36 OFFSHORE – PRESS RELEASE – NOVEMBER 2017 Emira launches USA investment strategy Diversification of Convenient grocery Better ZAR returns, assets and income anchored urban locked-in growth rates retail – resilient
Slide 38: USA GDP growth and unemployment
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 37 USA GDP GROWTH OVER 2010-2017 + UNEMPLOYMENT (%) GDP GROWTH RATE INVERTED UNEMPLOYMENT RATE 4 2 3 4 2 6 1 8 0 10 2010 2011 2012 2013 2014 2015 2015 2017 US GDP GROWTH RATE UNEMPLOYMENT RATE USA – largest economy Chosen states – GD
Slide 39: Emira co-investment model
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 38 EMIRA CO-INVESTMENT MODEL › US partners that co-invest with Emira › US to US deal making – access to deals, pricing and bank funding › Like minded partners Rainier Group Dallas, Texas-based Further of companies partner/investor >U
Slide 40: US geographical exposure
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 39 US GEOGRAPHICAL EXPOSURE Future US states US States currently invested in (1 asset in Texas and 2 assets in Ohio) OH IN US States with identified pipeline (1 asset each in Indiana and GA Georgia) TX TX
Slide 41: Belden Park Crossings – location and situation
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 40 BELDEN PARK CROSSINGS – LOCATION AND SITUATION Cleveland Belden Park OHIO Canton Crossings Columbus Cincinnati
Slide 42: Belden Park Crossings – North Canton, Ohio
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 41 BELDEN PARK CROSSINGS – NORTH CANTON, OHIO (17 OCT 2017) PURCHASE PRICE GLA OCCUPANCY EMIRA CASH-ON-CASH USD67.0m (100%) 482 534ft2 93.2% INVESTMENT RETURN USD8.4m USD 12.0% YIELD SITE EXTENT WALE 8.1% 1 958 022ft2 3.3 years (46.7
Slide 43: 32 East – location and situation
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 42 32 EAST – LOCATION AND SITUATION 32 East Cleveland OHIO Canton OHIO Columbus Cincinnati
Slide 44: 32 East – Cincinnati, Ohio
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 43 32 EAST – CINCINNATI, OHIO (19 JAN 2018) PURCHASE PRICE GLA OCCUPANCY EMIRA CASH-ON-CASH USD29.1m (100%) 188 912ft2 100% INVESTMENT RETURN USD4.25m USD 12.0% YIELD SITE EXTENT WALE 8.4% 912 887ft2 8.5 years (49.4% preferred equity
Slide 45: Moore Plaza – location and situation
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 44 MOORE PLAZA – LOCATION AND SITUATION Moore Plaza Dallas TEXAS Houston Corpus Christi
Slide 46: Moore Plaza – Corpus Christi, Texas
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 45 MOORE PLAZA – CORPUS CHRISTI, TEXAS (18 JAN 2018) PURCHASE PRICE GLA OCCUPANCY EMIRA CASH-ON-CASH USD70.6m (100%) 380 592ft2 99.2% INVESTMENT RETURN USD13.1m USD 12.14% YIELD SITE EXTENT WALE 8.1% 1 488 010ft2 3.8 years (49.5% equ
Slide 47: FY18/19 summary
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 46 FY18/19 SUMMARY › Responsible rebalancing continues › Groundwork for the future has been laid and rewards are starting to come through › Continue to increase offshore exposure
Slide 48: FY18/19 outlook
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 47 FY18/19 OUTLOOK › Solid NAV underpin › Expected growth in DPS of 2.5% for FY18 › FY19 expected to return a minimum of real growth
Slide 49: Thank you
THANK YOU PROPERTY FUND
Slide 50: Annexures
ANNEXURES PROPERTY FUND
Slide 51: Debt mix analysis
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 50 DEBT MIX ANALYSIS CURRENCY ZAR AUD USD TOTAL Income producing assets 13 413 941 100 14 453 Total facilities (Rm) 6 165 – 6 165 Reclassified as foreign debt through CCIRS (Rm) (998) 845 153* – Adjusted total facilities (Rm) 5 167 8
Slide 52: Debt covenants
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 51 DEBT COVENANTS TRANSACTION TRANSACTION TRANSACTION CORPORATE CORPORATE CORPORATE CORPORATE VALUE OF FACILITY FACILITY LTV LTV LTV LTV LTV ICR ICR PROPERTIES AVAILABLE DRAWN COVENANT ACTUAL ACTUAL COVENANT ACTUAL* COVENANT ACTUAL (
Slide 53: Foreign income: weighted average hedged rate
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 52 FOREIGN INCOME: WEIGHTED AVERAGE HEDGED RATE PER REPORTING PERIOD Forward rate against ZAR: GOZ USA AUD USD Jun 18 R10.86 R13.06 Dec 18 R11.33 R13.36 Jun 19 R11.61 R13.70 Dec 19 R12.03 R14.06 Jun 20 R12.34 R14.43 Dec 20 – R14.83 J
Slide 54: Cost-to-income ratio
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 53 COST-TO-INCOME RATIO (%) 40% 35% 37.9% 35.7% 36.1% 30% 25% 20% 20.4% 15% 17.1% 17.1% 10% 5% 0% GROSS NET DEC 15 DEC 16 DEC 17
Slide 55: Property expense analysis
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 54 PROPERTY EXPENSE ANALYSIS (%) MUNICIPAL CHARGES 69 67 SECURITY EXPENSES 7 8 SERVICE CONTRACTS 6 6 MAINTENANCE & REFURBISHMENT 5 4 RENT & LEVIES PAID 4 4 LEASING EXPENSES 1 3 BAD DEBTS 3 3 ADMINISTRATION EXPENSES 2 2 CONSUMABLES 1
Slide 56: Valuation parameters
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 55 VALUATION PARAMETERS DEC 2016 DEC 2017 Direct property portfolio Valuation (Rm) # 13 256 12 727 % of the portfolio valued externally * 0.0 0.0 Average value per property (Rm) ## 93 113 Average discount rate (%) ** 14.5 14.4 Averag
Slide 57: Geographic spread by number of buildings
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 56 GEOGRAPHIC SPREAD BY NO. OF BUILDINGS: 2016 vs 2017 60 56 50 45 40 30 30 26 24 20 20 20 18 10 6 3 3 0 1 1 0 JOHANNESBURG PRETORIA WESTERN CAPE KWAZULU-NATAL EASTERN CAPE BLOEMFONTEIN MPUMALANGA DEC 16 DEC 17
Slide 58: Geographic spread by value
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 57 GEOGRAPHIC SPREAD BY VALUE 8 21 8 21 JOHANNESBURG 13 32 32 GEOGRAPHICAL PRETORIA 14 GEOGRAPHICAL SPREAD BY WESTERN CAPE SPREAD BY VALUE (%) VALUE (%) KWAZULU-NATAL 2016 BLOEMFONTEIN 2017 MPUMALANGA 44 43 31 31 10 10 JOHANNESBURG G
Slide 59: Office sector exposure
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 58 OFFICE SECTOR EXPOSURE (%) 9 17 B-GRADE % 2011 A- AND P-GRADE % OF TOTAL EMIRA 2017 OF TOTAL EMIRA PORTFOLIO PORTFOLIO 35 30 Substantial reduction in B-Grade offices
Slide 60: Vacancy profile by sector and grade by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 59 VACANCY PROFILE BY SECTOR AND GRADE BY GLA (%) 18% Hundreds 16.0 16% 14% 12.3 12% 11.2 11.2 10% 9.1 8% 7.3 7.0 6.3 6% 5.4 4% 3.2 2.4 1.8 2.0 2% 1.5 1.1 0% PRIME + OFFICE A OFFICE B URBAN RETAIL INDUSTRIAL TOTAL DEC 15 DEC 16 DEC 1
Slide 61: Value of the vacancy by gross rental
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 60 VALUE OF THE VACANCY BY GROSS RENTAL (%) 16% Hundreds 14.3 14% 12% 11.2 10.2 10% 8% 7.3 6.3 6% 5.4 4% 3.2 2.4 2.0 1.8 2% 1.5 1.1 0% OFFICE URBAN RETAIL INDUSTRIAL TOTAL DEC 15 DEC 16 DEC 17
Slide 62: Vacancy by sector by gross rental and grade
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 61 VACANCY BY SECTOR BY GROSS RENTAL AND GRADE (%) 18% 16.4 16% 15.5 14% 12% 9.9 10% 9.4 9.1 8.0 8% 7.0 6% 4.7 4.5 4% 3.4 3.1 2.2 2.1 1.7 2% 1.2 0% PRIME + OFFICE A OFFICE B URBAN RETAIL INDUSTRIAL TOTAL DEC 15 DEC 16 DEC 17
Slide 63: Major lease expiries by GLA: 1H18
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 62 10 MAJOR LEASE EXPIRIES BY GLA: 1H18 PROPERTY TENANT LEASE END GLA (m²) STATUS RTT Continental RTT Group Dec 17 12 921 Renewed – 3 years 12 Baker Street and Vacated Sasol Aug 17 10 239 2 Sturdee Avenue (Residential conversion) Cam
Slide 64: Major lease expiries by GLA: 2H18
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 63 10 MAJOR LEASE EXPIRIES BY GLA: 2H18 PROPERTY TENANT LEASE END GLA (m²) STATUS Negotiating with Morgan Creek Simba May 18 4 644 tenant – 2 years Wonderpark Chevron SA Jan 18 3 342 Renewed – 10 years Technohub Vodacom Mar 18 3 342
Slide 65: Lease expiry profile – offices by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 64 LEASE EXPIRY PROFILE – OFFICES BY GLA (%) 45% Hundreds 39.8 40% 35% 29.3 30% 27.9 24.4 25% 23.1 20.5 20% 19.1 19.0 17.7 17.0 16.1 15% 13.8 9.3 9.4 9.5 10% 5% 1.6 1.4 0.9 0.0 0.0 0.3 0% VACANCY VACATED EXPIRIES YEAR 1 YEAR 2 YEAR 3
Slide 66: Lease expiry profile – urban retail by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 65 LEASE EXPIRY PROFILE – URBAN RETAIL BY GLA (%) 70% Hundreds 60.7 60% 57.4 57.7 50% 40% 30% 20% 16.315.0 15.9 12.7 14.0 13.1 11.4 10% 7.5 5.2 3.4 3.1 2.2 1.0 0.5 0.0 0.7 1.7 0.6 0% VACANCY VACATED EXPIRIES YEAR 1 YEAR 2 YEAR 3 YEAR
Slide 67: Lease expiry profile – industrial by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 66 LEASE EXPIRY PROFILE – INDUSTRIAL BY GLA (%) 50% Hundreds 46.2 45% 42.9 40% 36.9 35% 30% 28.6 27.4 25% 24.1 21.7 20% 18.7 15.7 15% 12.4 10.8 10% 7.2 5% 1.7 1.2 2.1 1.8 0.0 0.1 0.0 0.4 0.0 0% VACANCY VACATED EXPIRIES YEAR 1 YEAR 2
Slide 68: Reversions renewals (gross rentals)
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 67 REVERSIONS RENEWALS (GROSS RENTALS) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL DECREASE % Office 32 321 138.08 131.24 -5.0 Urban retail 26 865 161.67 162.82 0.7 Industrial 42 821 56.54 57.02 0.8 Total Dec 17 10
Slide 69: Reversions new leases (gross rentals)
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 68 REVERSIONS NEW LEASES (GROSS RENTALS) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL DECREASE % Office 9 287 130.40 123.35 -5.4 Urban retail 5 961 159.14 146.59 -7.9 Industrial 21 306 48.05 45.40 -5.5 Total Dec 17
Slide 70: Properties excluded from like-for-like
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 69 PROPERTIES EXCLUDED FROM LIKE-FOR-LIKE The following are excluded from FY18 numbers: Purchases › Summit Place (A, C, D, E1, E2, E3, E4 and G1), 1 West land, Discovery land, Quagga land Disposals › Brandwag & Kosmos flats, 1289 Heu
Slide 71: Leases concluded: Emira portfolio (1H18)
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 70 LEASES CONCLUDED: EMIRA PORTFOLIO (1H18) NEW RENEWAL TOTAL Number of leases 155 199 354 Total m² 61 884 96 753 158 637 Average duration (years) 3.0 2.8 2.9 Leave value (Rm) 531.8 444.4 976.2 The weighted average duration for the t
Slide 72: Escalations
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 71 ESCALATIONS (%) 8.4% 8.3 Hundreds 8.2% 8.0 8.0% 7.9 7.8 7.8% 7.7 7.7 7.6 7.6 7.6 7.6 7.6 7.6% 7.4 7.4% 7.2% 7.0% 6.8% OFFICE URBAN RETAIL INDUSTRIAL TOTAL DEC 15 DEC 16 DEC 17
Slide 73: Emira net rentals
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 72 EMIRA NET RENTALS (excl. parking stores and vacancies) NO. OF OCCUPIED AVG. NET SECTOR BUILDINGS GLA (m²) RENTAL (R/m²) Office: P-Grade 5 59 481 158.41 Office: A-Grade 26 148 001 127.21 Office: B-Grade 15 88 542 100.34 Urban retai
Slide 74: Major lease expiries by GLA: FY19
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 73 10 MAJOR LEASE EXPIRIES BY GLA: FY19 PROPERTY TENANT LEASE END GLA (m²) STATUS Defy Defy Sep 18 10 100 Expecting to renew Trellidor Trellidor Sep 18 7 794 Expecting to renew 14-16 Boston Circle Bidvest Data Jun 19 7 533 Expecting
Slide 75: FY19: major vacancies anticipated by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 74 FY19: MAJOR VACANCIES ANTICIPATED BY GLA (±1 000m²) PROPERTY EX-TENANT GLA (m²) FROM WHEN UPDATE Cambridge Park Netflorist 4 551 Nov 18 Require bigger facility Umgeni Road B – 23 Sinclairs Legal 3 600 Mar 19 Intersite Panelbeaters
Slide 76: Tenant grading by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 75 TENANT GRADING BY GLA TOTAL PORTFOLIO (%) PER SECTOR (%) 80% Hundreds 70 19 70% 58 60% 52 52 50% 40% A B C 29 28 58 30% 20 19 24 19 24 20% 12 18 10% 0% OFFICE URBAN RETAIL INDUSTRIAL TOTAL GRADING “A” Large national tenants, large
Slide 77: Tenant exposure by GLA
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 76 TENANT EXPOSURE BY GLA TOP 10 TENANTS OF THE TOTAL PORTFOLIO (%) TOP 10 TENANTS (%) SPLIT OF THE TOTAL PORTFOLIO RTT GROUP 5.8 PICK N PAY 4.5 22 MASSTORES 2.5 SHOPRITE CHECKERS 1.7 TOP 10 TENANTS WOOLWORTHS 1.5 OTHER TENANTS DEVLA
Slide 78: Tenant exposure by gross rental
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 77 TENANT EXPOSURE BY GROSS RENTAL TOP 10 TENANTS OF THE TOTAL PORTFOLIO (%) TENANT EXPOSURE – TOP 10 TENANTS (%) MASSTORES 3.4 PICK N PAY 3.3 20 RTT GROUP 3.2 STAR 2.0 TOP 10 TENANTS KING PRICE INSURANCE 1.5 OTHER TENANTS SA LOCAL G
Slide 79: Potential new capex projects – not committed
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 78 POTENTIAL NEW CAPEX PROJECTS – NOT COMMITTED MAJOR PROJECTS VALUE CONSTRUCTION BEING CONSIDERED TYPE m² (R) TIME 1 West Parking space/future mixed use 3 430 850 000 2 months 267 West Parking space 3 702 18 000 000 8 months Quagga
Slide 80: Sustainability planning
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 79 SUSTAINABILITY PLANNING GREEN WATER CLEAN ENERGY CARBON FOOTPRINT BUILDINGS EFFICIENCY PRODUCTION REPORTING › Knightsbridge 4-star GBCSA › 22 400kl recorded water › 1.0 GWh of clean electricity › New online Eco business ratings ce
Slide 81: Disposals
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 80 DISPOSALS SALE GLA BOOK VALUE PRICE EXIT YIELD EFFECTIVE PROPERTY LOCATION SECTOR (m2) (Rm) (Rm) (%) DATE Convention House Durban Office 6 249 45.0 44.0 11.7 Oct 17 4 Kikuyu Road Johannesburg Office 4 608 27.2 28.0 6.9 Oct 17 Harb
Slide 82: Top ten properties by value
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 81 TOP TEN PROPERTIES BY VALUE PROPERTY NODE CLASSIFICATION GLA (m2) MAJOR TENANTS Wonderpark Pretoria Regional 90 882 Pick n Pay (12 867m²), Game (5 292m²), Woolworths (4 642m²), Shopping Centre North S/centre Edgars (3 998m²), Chec
Slide 83: Enyuka
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 82 ENYUKA DEC 2016 DEC 2017 Number of properties 15 21 Property portfolio value R584m R901m Average value per m² R7 305 R8 428 Average value per property R39m R43m LTV (excluding shareholder loans) 0% 24.4% Vacancy profile by GLA 5.5