Stor-age Property Reit Ltd. · JSE:SSS
Stor-age Property Reit — IPO Roadshow (October 2015)
28 slides from Stor-age Property Reit's IPO roadshow presentation, October 2015
Slide 1: JSE Listing Investor Roadshow Presentation
JSE Listing Investor Roadshow Presentation October 2015
Slide 2: Investment highlights
Investment highlights • Leading & largest self storage property fund in South Africa • Self storage sector exposure currently unavailable on JSE • South Africa’s only self storage portfolio of sufficient quality & scale • Niche asset class uncorrelated to traditional drivers of property • Recession-
Slide 3: Our people, both customers & staff are at the heart of our business
Our people, both customers & staff are at the heart of our business … 3
Slide 4: Agenda
Agenda 1. Offer summary 6 2. Fund fact sheet 8 3. Structure on listing 10 4. Listing portfolio 12 5. Pipeline 16 6. Board of Directors 18 7. Financial information 21 8. Capital raising 24 Annexure A: Schedule of properties 4
Slide 5: Stor-age: need space?
®> stor-age rp self storage need space?
Slide 6: Offer summary
Offer summary Issuer Stor-Age Property REIT Limited Offer Private placement to raise R808 million¹ Retail offer to tenants & individuals to subscribe for R15 million¹ Pricing Yield of 8%² Forecast growth in distributions of 10.8%ᶟ JSE sector “Speciality REITs” Financial year-end is March YE & distri
Slide 7: Understanding our customers' needs drives everything that we do
Integrated Platform Maximising Revenue Streams Understanding our customers’ needs drives everything that we do … 7
Slide 8: Fund fact sheet
Fund fact sheet • Leading & largest self storage property fund & brand in South Africa Investment positives • Highly specialised & dominant player in niche sub-sector • Internally managed, ‘best of breed’ REIT • Listing as a low risk income paying REIT with conservative gearing levels structure • Pr
Slide 9: Brand power
Brand power … Stor-Age boasts the second highest online social media following in the world of all peers (30,000 + Followers on Facebook). Half of all enquiries arise from the internet. Of these, c. 50% are generated organically (brand power) & c. 40% of online enquiries originate from either mobile
Slide 10: Structure on listing
Structure on listing Prior to listing the structure consisted of separate property owning, fund management & self Alignment of interests storage operations businesses: • Property owning & fund management businesses held 33.33% by Growthpoint, Faircape & SASSI The executive management Trust (original
Slide 11: Stor-age self storage
stor-age self storage
Slide 12: Listing portfolio
Listing portfolio Property strategy Total properties 24 Stor-Age intends enhancing performance Total property value R1.3 billion & returns by: Total GLA 181,500 m² • Extracting organic growth through active revenue management, Developable GLA (town planning in place) 20,000 m² + improving the unit m
Slide 13: Listing portfolio cont.
Listing portfolio cont. Geographical representation Gauteng (54%) Geographic focus 4% 4% Western Cape (34%) 4% 34% 54% The primary focus is on high Eastern Cape (4%) profile locations in the four main cities in SA: JHB, PTA, CT & Kwazulu Natal (4%) DBN Free State (4%) Residential/commercial tenant m
Slide 14: Listing portfolio cont.
Listing portfolio cont. Average length of stay Demand profile < 6 months 15% 33% Stor-Age’s demand profile is 9% 6 - 12 months driven by two significant user > 12 months groups - those needing to use 22% 21% 2 - 3 years the product for short stays due > 3 years to ‘life changing events’ (< 6 months
Slide 15: Energy efficient
Energy efficient Stor-Age maintains sustainable practices in energy efficiency, renewable energy & storm water management. Stor-Age Pinehurst boasts a photo voltaic solar installation which provides its own electricity with surplus electricity channelled into the national grid. Electricity consumpti
Slide 16: Pipeline
Pipeline Target criteria for new • 19 properties representing estimated 145,000 m² GLA: development sites • 8 currently trading (‘Managed Portfolio’) • Managed Portfolio dominated by high profile ‘Big Box’ properties in outstanding • Four main cities in SA: locations - Claremont & Somerset West (CT)
Slide 17: Stor-age self storage
stor-age self storage
Slide 18: Board of Directors
Board of Directors Executives Gavin Lucas: CEO CA(SA) An entrepreneurial property developer backed by an experienced management team of professionals with a range of skills including investment banking, finance, property & construction, Gavin founded the Stor-Age Group in 2005. Leading the organisat
Slide 19: Board of Directors cont.
Board of Directors cont. Non-executives Paul Theodosiou: Independent Chairman CA(SA) After partnering with NIB in the promotion & subsequent listing of Acucap Properties Limited on the JSE, Paul successfully led Acucap as CEO for close on 15 years prior to their merger with Growthpoint in 2015. Curr
Slide 20: Stor-age self storage
S stor-age self storage
Slide 21: Financial info - principal assumptions
Financial info - principal assumptions Listing portfolio: Debt: Number of properties 24 Primary funder Nedbank Valuation of assets on listing R1 315m LTV 50% Rental rate (R/m²) R73/m² Gearing on listing 25% Occupancy at listing date 84% Target gearing 25-35% Long run stabilised occupancy 90% Hedging
Slide 22: Financial info cont. - forecasts
Financial info cont. - forecasts Year end Year end Notes 4.5 months 12 months Forward 31 Mar 16 31 Mar 17 12 months ¹ (1) Forward 12 months from assumed listing date of 16 November 2015 Rm Rm Rm (2) The rental underpin relates to a rental warranty provided by the Rental income 51.7 153.4 144.2 origi
Slide 23: Meet Jabu
Meet Jabu … Stor-Age was the first self storage company to advertise on national television. The IDEA Campaign was launched in May 2015 across multiple platforms, including TV, radio, billboard & digital. 23
Slide 24: Capital raising
Capital raising Private placement bookbuild Retail offer • Intention to raise R808 million, however Directors will • R15 million for allocation to private investors (existing determine final amount after applications have been & past tenants, staff members, service providers &/or received any other
Slide 25: This is Stor-Age 2015 video presentation
‘This is Stor-Age 2015’ … video presentation to staff at year-end staff conference - May 2015 25
Slide 26: Annexure A: Schedule of properties
Annexure A: Schedule of properties Property name Physical address Province Date of GLA (m²) Ind. valuation acquisition or *April 2015 completion (R’000) Bellville Cnr of Peter Barlow and Kasselsvlei Road, Bellville, Cape Town Western Cape Jan-12 5 782 R 44 900 Edgemead 1 Southdale Road, Edgemead, Ca
Slide 27: Get Spaced
"get Spaced i. stor-age self storage need space? 27
Slide 28: Disclaimer & confidentiality
Disclaimer & confidentiality This document is strictly confidential and is not for publication or circulation. All information contained herein is strictly confidential and proprietary and may not be copied, reproduced, communicated, transmitted or distributed, in whole or in part, to any person or