Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2021 Earnings Presentation
148 slides from Vukile Property Fund's earnings presentation, 2021
Slide 1: FY2021 Annual Financial Results
FY2021 YEAR ENDED 31 MARCH 2021 ANNUAL FINANCIAL RESULTS (Some photographs used in this presentation may have been taken prior to the COVID-19 pandemic and resultant health and safety requirements)
Slide 2: Agenda
AGENDA 1 INTRODUCTION Laurence Rapp 2 FINANCIAL PERFORMANCE, DEBT AND TREASURY Laurence Cohen 3 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW AND TRADING UPDATE Itumeleng Mothibeli 4 CASTELLANA PROPERTIES OVERVIEW AND TRADING UPDATE Alfonso Brunet 5 BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS Laur
Slide 3: Introduction
1 INTRODUCTION Laurence Rapp 3
Slide 4: Profile
1. INTRODUCTION / ANNUAL RESULTS 31 MARCH 2021 PROFILE WHO WE ARE > High-quality, low-risk, Retail REIT operating in Southern Africa and Spain > Significant geographic diversification with 51% of assets located in Spain > Strong operational focus with a core competence in active asset management > F
Slide 5: Group Overview – Property Assets of R33.6bn
1. INTRODUCTION / ANNUAL RESULTS 31 MARCH 2021 GROUP OVERVIEW – PROPERTY ASSETS OF R33.6bn WELL DIVERSIFIED EXPOSURE ACROSS MACRO ECONOMIC DRIVERS SPAIN SOUTHERN AFRICA R17.1bn R16.5bn 51% of assets 49% of assets Direct portfolio R17bn Direct portfolio R15.7bn Fairvest R538m Arrowhead R309m * Vukile
Slide 6: The Year in Review – Delivered on All Key Objectives
1. INTRODUCTION / ANNUAL RESULTS 31 MARCH 2021 THE YEAR IN REVIEW – DELIVERED ON ALL KEY OBJECTIVES AT THE BEGINNING OF THE PANDEMIC, COINCIDING WITH THE START OF FY2021, THE FOLLOWING KEY FOCUS AREAS WERE IDENTIFIED ˃ Ensure that we remain a going concern with a focus on long-term sustainability ˃
Slide 7: Highlights - Emerging from the Pandemic with a Strong Operating Platform
1. INTRODUCTION / ANNUAL RESULTS 31 MARCH 2021 HIGHLIGHTS - EMERGING FROM THE PANDEMIC WITH A STRONG OPERATING PLATFORM AND A ROBUST FINANCIAL POSITION SUSTAINED PERFORMANCE IN SOUTHERN AFRICA WITH IMPROVEMENTS IN KEY OPERATING METRICS > Footfall trending towards pre-COVID levels > Like-for-like tra
Slide 8: Financial Performance, Debt and Treasury
FINANCIAL PERFORMANCE, 2 DEBT AND TREASURY Laurence Cohen 8
Slide 9: Analysing These Results
1. INTRODUCTION / ANNUAL RESULTS 31 MARCH 2021 ANALYSING THESE RESULTS IN THE CONTEXT OF COVID-19 AND BEING A MARCH YEAR-END ˃ For the year ended 31 March 2020, the COVID-19 pandemic ˃ Did not impact distributable earnings, but ˃ Did negatively affect the forward-looking valuations ˃ Valuations now
Slide 10: Simplified Income Statement
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 SIMPLIFIED INCOME STATEMENT 31 March 2021 31 March 2020 Variance Rm Rm % Revenue 3 117 3 446 (9.6) Southern Africa 2 099 2 136 (1.8) Spain 1 018 1 310 (22.3) Property Expenses (1 254) (1 129) 11.1 Net property income 1 863 2
Slide 11: Approach to Dividend Payments
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 APPROACH TO DIVIDEND PAYMENTS FLEXIBILITY IN CASH RETENTION RATIO WHILST STILL RETAINING SA REIT STATUS ˃ In terms of JSE rules, an SA REIT must distribute at least 75% of distributable profits, subject to the solvency and li
Slide 12: Calculation of Dividend
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 CALCULATION OF DIVIDEND PAY-OUT RATIO FOR FY2021 APPROXIMATES 79% OF TOTAL GROUP FFO FY2021 FY2020 Rm Rm Estimated taxable income 861 1 195 Castellana dividend 427 450 Distributable earnings (as defined by the JSE) (A) 1 288
Slide 13: Distributable Earnings (Rm)
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 DISTRIBUTABLE EARNINGS (Rm) SIGNIFICANT IMPACT OF COVID-19 TENANT RELIEF ON DISTRIBUTABLE EARNINGS 100% 69% 79% 187.26 190.00 183.50 2 000 1 800 166.59 170.00 156.76 159.24 1 791 1 600 1 690 148.54 150.00 143.48 1 400 134.94
Slide 14: Distributable Earnings Bridge (Rm)
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 DISTRIBUTABLE EARNINGS BRIDGE (Rm) MAJORITY OF COVID-19 RENTAL RELIEF AND OPERATING IMPACT EXPERIENCED IN FIRST HALF FY2021 (108) (292) 8 (106) (73) 1,791 Atlantic Leaf sold August 2020 1,220 31 March 2020 Net property Income
Slide 15: Cash Flow Bridge (Rm)
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 CASH FLOW BRIDGE (Rm) PROCEEDS FROM THE SALE OF ATLANTIC LEAF UTILISED TO REDUCE BORROWINGS CASH BALANCES OF R1bn 1,103 1,178 Includes final dividend for FY20 of (1 526) R461m Repayment (454) 1,559 of debt (359) (primarily fr
Slide 16: NAV Bridge (R)
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 NAV BRIDGE (R) NAV PER SHARE REDUCED MARGINALLY TO R18.16 1.60 0.47 1.88 ( 1.24 ) Sale of ( 0.96 ) investment in ( 0.48 ) Atlantic Leaf and Arrowhead Includes ( 1.45 ) A-shares final dividend 18.34 for FY2020 18.16 NAV Net Ad
Slide 17: Debt and Balance Sheet Strategy
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 DEBT AND BALANCE SHEET STRATEGY SIGNIFICANT PROGRESS IN IMPROVING BALANCE SHEET AND RISK METRICS > Debt reduced by R3.1bn during the year, primarily due to sale of Atlantic leaf (R1.1bn), asset sales (R231m) and ZAR recovery
Slide 18: Debt and Balance Sheet Strategy (cont.)
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 DEBT AND BALANCE SHEET STRATEGY (CONT.) SIGNIFICANT PROGRESS IN IMPROVING BALANCE SHEET AND RISK METRICS > €91m and £14m (R2.1bn equivalent) of foreign denominated debt repaid or converted into ZAR debt > A further €138m (R2.
Slide 19: Loan-to-Value and Interest Cover Ratios
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 LOAN-TO-VALUE AND INTEREST COVER RATIOS COMFORTABLE HEADROOM ACROSS ALL METRICS > Strong cash flow compared with net interest cost > Group interest cover ratio of 3.3 times (which includes the impact of once-off COVID-19 reli
Slide 20: Group Loan-to-Value Bridge
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 GROUP LOAN-TO-VALUE BRIDGE DEBT REPAYMENTS HAVE CONTRIBUTED TO A 3.3% REDUCTION IN LTV Impact of cash retention 26% increase Payment of Debt reduction in Fairvest 27% increase R461m in Fairvest primarily as share price; FY202
Slide 21: Composition of Group Balance Sheet
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 COMPOSITION OF GROUP BALANCE SHEET MATCHING DEBT WITH PROPERTY ASSETS - BY GEOGRAPHY AND CURRENCY VUKILE COMPANY CASTELLANA Total Company assets (R24.0bn) to debt EUR assets (R17.7bn) to debt (R6.7bn) Ratio 3.6x (R8.7bn) Rati
Slide 22: Key Debt and Hedging Metrics
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 KEY DEBT AND HEDGING METRICS UNCHANGED INVESTMENT GRADE CREDIT RATING 31 March 30 September 31 March 2021 2020 2020 Interest-bearing debt hedged 78.0% 79.3% 81.3% Group cost of funding 3.9% 3.7% 4.0% Maturity profile – fixed
Slide 23: Analysis of Group Loan Expiry Profile
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 ANALYSIS OF GROUP LOAN EXPIRY PROFILE LOW RISK EXPIRY PROFILE > R2.1bn of GBP and EUR debt was repaid or converted into ZAR facilities, with a further R2.4bn of EUR debt repaid or converted into ZAR facilities after year-end
Slide 24: Debt Expiring in FY2022
2. FINANCIAL PERFORMANCE, DEBT AND TREASURY / ANNUAL RESULTS 31 MARCH 2021 DEBT EXPIRING IN FY2022 LOW RISK EXPIRY PROFILE 76% OF DEBT EXPIRING IN FY2022 HAS ALREADY BEEN REPAID OR EXTENDED (44% AFTER YEAR-END ) Amount Drawn Maturity Date Comments ‘000s Corporate bond VKE12 03 May 2021 R150 000 Repa
Slide 25: Southern African Retail Portfolio
3 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW AND TRADING UPDATE Itumeleng Mothibeli 25
Slide 26: Direct Southern African Retail Portfolio
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 DIRECT SOUTHERN AFRICAN RETAIL PORTFOLIO KEY RETAIL PORTFOLIO METRICS Portfolio Value Total number GLA Operational PV installed KEY FACTS of assets Capex forecast 16 plants R14.7bn 45 892 777m2 R64m 12.3MW Average asset value Value
Slide 27: Footfall and Sales
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 FOOTFALL AND SALES RURAL AND VALUE CENTRES SHOWING SIGNIFICANT GROWTH IN BASKET SIZE > March 2021 footfall recovered to 99% of comparable period, 105% whilst sales have exceeded those generated during prior H2 period 118% 104% 98% 1
Slide 28: Segmental Footfall
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 SEGMENTAL FOOTFALL RURAL RECOVERED TO 104% RELATIVE TO PRIOR YEAR > Rural centres recovered to 104%, township and Index: FY21 vs FY20 urban centres to 100% and commuter centres to 89% RURAL TOWNSHIP relative to prior year. Urban cen
Slide 29: Retail Category Performance
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 RETAIL CATEGORY PERFORMANCE ALTHOUGH AVERAGE TRADING DENSITIES SHOWED GROWTH OF 1.7%, ANNUAL TURNOVER CONTRACTED BY 3.7% Grocery/ Supermarket Food Density 5.5% Density 9.2% Pharmacies Turnover 5.7% Year-on-year turnover growth Turno
Slide 30: Retail Category Performance – H1 vs H2
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 RETAIL CATEGORY PERFORMANCE – H1 vs H2 MAJORITY OF TOP CATEGORIES SHOW IMPROVED PERFORMANCE SINCE SEPTEMBER 2020 Grocery/ Supermarket Density 5.4% to 5.5% Turnover 5.6% to 5.7% Year-on-year turnover growth Fashion Density (1.4%) to
Slide 31: Leasing Activity
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 LEASING ACTIVITY RETENTION AT 90% FILLING VACANT SPACE AND CHANGING TENANT MIX 354 renewals concluded on c.73 000m² (8.6% of GLA) 195 leases concluded on c.24 000m² (2.8% of GLA) reversions limited to -3.3% 52% of new leases reduced
Slide 32: Vacancy Movement
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 VACANCY MOVEMENT 12 601m² OF VACANT SPACE HAS BEEN LET WHEN CONTRASTED WITH 13 628m² OF VACATED SPACE Vacated New leasing Fashion 3 431m² 2 133m² Sports Utilities/Gyms/Outdoor Goods & Wear 1 582m² 1 023m² Grocery/ Supermarket 1 531m
Slide 33: Collections
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 COLLECTIONS COLLECTED R2.143bn (98%) of R2.176bn BILLED (NET OF R141m COVID CONCESSIONS GRANTED c. 1 MONTH’S RENT) COVID-19 concession as percentage of Billed Collected monthly rent National tenants (100%) 89% Mid-tier tenants (97%)
Slide 34: Valuations: Retail Portfolio
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 VALUATIONS: RETAIL PORTFOLIO 45 PROPERTIES VALUED AT R14.7bn INCREASING BY 1.4% WITH AN UNDEMANDING VALUE DENSITY OF R16 467/m² 874 (345) (112) (260) 14,499 46 14,702 6.0% (2.6%) (0.8%) (1.7%) 0.2% R’m Value Organic growth Effect of
Slide 35: Portfolio Disposals
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 PORTFOLIO DISPOSALS DISPOSALS OF R793m AT AVERAGE YIELD OF 10.0% SOLD AT A 3% PREMIUM TO BOOK VALUE 3 Properties transferred Sales price Transfer during FY21 (Rm) date R230.5m Sandton Linbro 7 On Mastiff Business Park 114.0 29 Mar 2
Slide 36: Redevelopment Update
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 REDEVELOPMENT UPDATE DAVEYTON MALL R90m REDEVELOPMENT > The redeveloped mall will comprise of: > increased lettable area with 2 051m² which will increase the total GLA to 19 760m² > reconfigured existing space of 4 012m² > improving
Slide 37: Data Driven Asset Management
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 DATA DRIVEN ASSET MANAGEMENT COMBINATION OF IN AND OUT-OF-MALL INSIGHTS LEADS TO BETTER KNOWLEDGE OF CONSUMERS IN MALL DIGITAL DATA OUT-OF-MALL DIGITAL DATA Primary catchment Area and geo-mapped Hourly in mall footfall retailers wit
Slide 38: Data Driven Asset Management – East Rand Mall
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 DATA DRIVEN ASSET MANAGEMENT EAST RAND MALL – CASE STUDY USING DIGITAL IN/OUT-OF-MALL DATA HYPOTHESIS: Following the advent of covid-19 shoppers (1) prefer open air malls, (2) shop more on weekends, and (3) spend significantly longe
Slide 39: Consumer Journey
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 CONSUMER JOURNEY USE OF APP AND CAPTIVE PORTAL TO PROVIDE PERSONALISED SERVICE TO CONSUMER > Wi-fi now in 17 Malls with 3.7m registered users > Launched multi-mall app at 16 malls across the country > We have provided over 346TB (Te
Slide 40: Vukile Retail Academy
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 VUKILE RETAIL ACADEMY INNOVATIVE AND UNIQUELY SOUTH AFRICAN RETAIL INCUBATION PROGRAMME > The objective is to create greater diversity in tenant and category mix within our malls > An incubation programme to help the next wave of se
Slide 41: Short-Term Focus Areas
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 SHORT-TERM FOCUS AREAS CONTINUED TIGHT OPERATIONAL FOCUS > Continue to be a partner of choice through providing well managed and a safe shopping environment for our retailers to thrive in TENANT > Be the home of innovation allowing
Slide 42: Castellana Properties
4 CASTELLANA PROPERTIES OVERVIEW AND TRADING UPDATE Alfonso Brunet 42
Slide 43: COVID-19 in Spain
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 COVID-19 IN SPAIN SPAIN IS EXITING THE PANDEMIC WITH MASS VACCINATION CUTTING DAILY DEATHS DRASTICALLY COVID-19 DEATHS CONFIRMED BY THE SPANISH MINISTRY OF HEALTH State of Alarm Announcement of declared de-escalation plan – hard national Start
Slide 44: COVID-19 in Spain
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 COVID-19 IN SPAIN OBJECTIVE: REACH GROUP IMMUNITY BY END OF AUGUST 2021 WITH AT LEAST 70% OF THE POPULATION VACCINATED VACCINATION PROGRAMME SPAIN VACCINATION TIMETABLE > As of 2 June, Spain had vaccinated 40% of its population with one dose, w
Slide 45: Impact on Spanish Economy
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 IMPACT ON SPANISH ECONOMY SHARP CONTRACTION WITH REBOUND EXPECTED IN 2021 > While Spain’s GDP fell by -10.8% in 2020, the expected rebound in 2021 will take GDP growth to +5.5% in 2021 and +7.0% in 2022 ECONOMY > The ECB will accelerate its deb
Slide 46: Direct Spanish Portfolio
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 DIRECT SPANISH PORTFOLIO KEY PORTFOLIO METRICS Portfolio Value Total number GLA Retail KEY FACTS €987m (-0.7%) (1) of assets by value (-1.6%) (2) 18 367 015m² 96.7% (3) Average asset Average Average exit Total number VALUATIONS value discount r
Slide 47: Footfall and Sales
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 FOOTFALL AND SALES STRONG REBOUND IN FOOTFALL AND SALES AS SOON AS CUSTOMERS ARE ABLE TO RETURN - LARGE RETAIL PARK EXPOSURE CONTRIBUTING TO SALES OUTPERFORMANCE FOOTFALL & SALES RECOVERY (1) 18 120% > Larger basket sizes contributing to 1ST WA
Slide 48: Sales Performance per Tenant Category
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 SALES PERFORMANCE PER TENANT CATEGORY LIKE-FOR-LIKE SALES CONTINUE TO RECOVER ACROSS MOST RETAIL SECTORS YTD LIKE-FOR-LIKE SALES – FY2021 vs. FY2020 > By the end of March 2021, the accumulated Services 113% portfolio sales for FY2021 reached 73
Slide 49: Strengthening the Retail Portfolio Metrics in the Face of the Pandemic
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 STRENGTHENING THE RETAIL PORTFOLIO METRICS IN THE FACE OF THE PANDEMIC AGREEMENTS ON TRACK WITH 95% OF ADDENDUMS … LEADING TO STRENGTHENED TENANT RELATIONSHIPS CLOSED OR UNDER ADVANCED NEGOTIATIONS... STABILISING AND IMPROVING OF ALL RETAIL KEY
Slide 50: Leasing Activity
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 LEASING ACTIVITY COMMERCIAL PERFORMANCE FY2021 MAIN BUSINESS KPI´S DURING FY2021 PORTFOLIO ALMOST FULLY LET 116 €7.2m 31 MARCH 2021 98.29% LEASES SIGNED NEW RENT SIGNED 31 MARCH 2020 98.30% 49 67 €1.9m €5.3m RENEWALS NEW CONTRACTS RENEWALS NEW
Slide 51: Collections
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 COLLECTIONS MARCH 2020 TO MARCH 2021 > All service charge recoveries have been fully invoiced and collected during FY21 > Since reopening, invoicing has increased with collections holding stable TOTAL LOCKDOWNS PARTIAL LOCKDOWNS 1ST STATE OF AL
Slide 52: GRI Bridge and Breakdown
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 GRI BRIDGE AND BREAKDOWN TEMPORARY COVID-19 AGREEMENTS REACHED TO SUPPORT OUR TENANTS POTENTIAL PORTFOLIO GRI ANNUALISED OF OVER €66m SHOPPING CENTRES €45m 68.2% SHOPPING CENTRES 0.3% LfL RETAIL PARKS €19m 28.8% RETAIL PARKS 1.3% GROWTH (1) OFF
Slide 53: GAV Bridge and Breakdown
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 GAV BRIDGE AND BREAKDOWN EXTERNAL VALUATIONS PREPARED AT 31 MARCH 2021 ALREADY REFLECT THE EFFECT OF THE PANDEMIC WITH A TOTAL GAV DECREASE OF 4.0% (1) SINCE 30 SEPTEMBER 2019 COVID-19 COVID-19 COVID-19 Effect Effect Effect (2) (3) (4) (2.4%) (
Slide 54: Valuations
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 VALUATIONS INDEPENDENT FAIR VALUATIONS IMPACTED BY 3.4% OVER PAST 12 MONTHS REMAIN RESILIENT FAIR VALUE BY ASSET CLASS (€m) STABILISED NOI (1) AND REVERSIONARY YIELD (2) 6.96% 6.80% 6.84% 1 028 1 003 994 6.60% 987 67.0 66.6 67.0 66.6 694 682 67
Slide 55: Repositioning Project
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 REPOSITIONING PROJECT €3.86m 51 37,896.3 m² 92.8% ADDITIONAL NOI CREATED NEW BRANDS GLA AFFECTED SIGNED AND COMMITTED CONTRACTS EL FARO BAHÍA SUR LOS ARCOS 55
Slide 56: Phase II Los Arcos Shopping Centre
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 PHASE II LOS ARCOS SHOPPING CENTRE SOLIDIFYING THE LEADING POSITION OF LOS ARCOS, ENSURING THE BEST LEISURE AND FOOD AREA BEFORE AFTER > After the acquisition of a four-storey office building adjacent to Los Arcos, comprising over 4,600 sqm GLA
Slide 57: European Footfall
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 EUROPEAN FOOTFALL SPAIN IS OUTPERFORMING COMPARED TO OTHER EUROPEAN COUNTRIES Q1 2021 FOOTFALL EVOLUTION: TOTAL MALL EMEA Top markets Year-on-Year 1 United Arab Emirates (UAE) -16.5% 2 Spain -17.1% 3 Switzerland -21.4% 4 Italy -23.3% -49.3% -69
Slide 58: E-Commerce Evolution
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 E-COMMERCE EVOLUTION SPANISH E-COMMERCE PENETRATION STAYS LOW DESPITE THE PANDEMIC, WITH ONLY 36% OF TOTAL ONLINE TRANSACTIONS COMPRISING RETAIL SALES In Spain, online purchases still represent only 8,7% of total retail From total online transa
Slide 59: Customer Trends
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 CUSTOMER TRENDS PHYSICAL SALES WILL GROW C. 8.5% OVER THE NEXT FIVE YEARS, WITH CONSUMERS DESIRING A RETURN TO STORES of consumers say they will shop in physical stores once the pandemic is over. Non-food spending growth to outperform online re
Slide 60: Retailers' Soundings
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 RETAILERS’ SOUNDINGS ‘PHYSICAL SPACE’ REMAINS CRITICAL IN OMNI-CHANNEL STRATEGY AND 60% OF OUR RETAILERS PLAN TO INVEST IN PHYSICAL STORES COMMITTED TO OMNICHANNEL PHYSICAL STORES PHYSICAL STORES STRATEGY PREFERENCE 60% 72% 84% PLAN TO INVEST P
Slide 61: Digital Path
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 DIGITAL PATH STRENGTHENING THE PORTFOLIO WITH A POWERFUL AND UNIFIED DIGITAL CUSTOMER JOURNEY > New website, app and loyalty program in each Shopping Centre focusing on customer centricity > A single platform for digital channels with powerful,
Slide 62: iCAST Programme
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 iCAST PROGRAMME CREATING OUR OWN INNOVATION PROGRAMME TO ADAPT SHOPPING CENTRES TO EMERGING CONSUMER NEEDS AND EXCEL AS TRUE OMNICHANNEL SPACES > iCAST is designed to forge a new path in innovation, create added value, spearhead transformation
Slide 63: Key Focus Areas Going Forward
4. CASTELLANA PROPERTIES / ANNUAL RESULTS 31 MARCH 2021 KEY FOCUS AREAS GOING FORWARD > Business management – keep management focus on Castellana’s income and balance sheet stability OPERATIONAL > Tenant Relationships - continuing to nurture our tenants to build a new, better relationship to act as
Slide 64: Business Driver Analysis, Strategy and Prospects
5 BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS Laurence Rapp 64
Slide 65: Key Drivers Influencing Our Business Model
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 KEY DRIVERS INFLUENCING OUR BUSINESS MODEL Changing nature of retail Focus on Access total to return funding ESG 65
Slide 66: Changing Nature of Retail
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 CHANGING NATURE OF RETAIL > Not since the Industrial Revolution has shopping been in such upheaval > Data-driven shopping transformation is unstoppable. > It will change the nature of stores, so that physical and digi
Slide 67: Customers Create Value
CUSTOMERS CREATE VALUE Greater customer knowledge and insight Ability to better serve our customer’s needs by providing enhanced offering and optimal tenant mix More customer visits, longer dwell times and greater spend Better trading conditions, lower rent to sales, higher profitability and overall
Slide 68: Building the Capabilities to Become a Next Generation Real Estate Company
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 BUILDING THE CAPABILITIES TO BECOME A ‘NEXT GENERATION REAL ESTATE COMPANY’ > Engaged with leading market expert > Investment in Geolocation data company Fetch to consult in the field of digital RETAIL AND starting to
Slide 69: Funding
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 FUNDING ACCESS TO CAPITAL REMAINS THE LIFEBLOOD OF REITS; THE RISK REMAINS OF REITS BECOMING ‘CLOSED END FUNDS’ ˃ With continued large discounts to NAV persisting, equity capital markets remain unattractive as a sourc
Slide 70: Total Return Focus
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 TOTAL RETURN FOCUS Prior market focus was exclusively on yield and hence strategies were geared towards maximising growth in dividends ˃ Easy access to equity capital in almost limitless amounts ˃ 100% pay-out ratios
Slide 71: Adopting More Local Funding / Rand Hedge
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 ADOPTING MORE LOCAL FUNDING WITH A HIGH PERCENTAGE OF ASSETS HELD OFFSHORE PROVIDES A GREATER RAND HEDGE FOR INVESTORS FROM TO At 31 March 2021, as the ZAR spot rate weakens to the EUR, Proforma after year-end (includ
Slide 72: Positioning Vukile's ESG Strategy & Communications
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 POSITIONING VUKILE’S ESG STRATEGY & COMMUNICATIONS CURRENT FY2022 POST FY2022 > Appointed external advisors on ESG in > Developing specific ESG strategic focus areas > Implement against our 5-year ESG action plan Sout
Slide 73: Strategic Focus Areas
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 STRATEGIC FOCUS AREAS > Continued drive to embed a singular culture within Vukile and Castellana OUR > Ongoing investment in health and wellness programmes for the team covering both physical and mental wellbeing PEOP
Slide 74: Prospects
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 PROSPECTS WELL POSITIONED FOR LONG TERM SUSTAINABILITY ˃ The Vukile business remains in very good shape operationally, financially and strategically and is well positioned for long term sustainability ˃ The macro-econ
Slide 75: Acknowledgements
5. BUSINESS DRIVER ANALYSIS, STRATEGY AND PROSPECTS / ANNUAL RESULTS 31 MARCH 2021 ACKNOWLEDGEMENTS ˃ Board ˃ Property managers ˃ Service providers ˃ Brokers and developers ˃ Tenants ˃ Investors ˃ Funders ˃ Colleagues ˃ Pay tribute to the memories of the family members of Vukile staff who have passe
Slide 76: Questions & Answers
QUESTIONS & ANSWERS VUKILE PROPERTY FUND REAL ESTATE. REAL GROWTH. 76
Slide 77: Portfolio Composition
APPENDIX A PORTFOLIO COMPOSITION Southern African Portfolio 77
Slide 78: Southern Africa Retail Footprint
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICA RETAIL FOOTPRINT RETAIL PORTFOLIO PROFILE (TOP 15 PROPERTIES 64% OF RETAIL PORTFOLIO BY VALUE) 15 11 1 East Rand Mall 9 Mdantsane City 7% 1 15 2 Pine Crest 10 Meadowdale Mall 6% 13 6 5 10 12 4% 11 35% 3 Phoenix Plaza Thavhani Mall 4% 12 4 Mal
Slide 79: High Quality Retail Assets
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS EAST RAND PINE PHOENIX MALUTI KOLONNADE MALL CREST PLAZA CRESCENT RETAIL PARK GAV R1 188m R1 153m R 851m R 785m R 606m Region Gauteng KwaZulu-Natal KwaZulu-Natal Free State Gauteng Gross Lettable Area 68 568m² 43 333m
Slide 80: High Quality Retail Assets
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS (CONT.) DOBSONVILLE GUGULETHU MDANTSANE MEADOWDALE NONESI MALL MALL SQUARE CITY MALL GAV R 592m R 558m R 539m R 537m R 458m Region Gauteng Western Cape Eastern Cape Eastern Cape Gauteng Gross Lettable Area 26 438m² 25
Slide 81: High Quality Retail Assets
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 HIGH QUALITY RETAIL ASSETS TOP 15 ASSETS (CONT.) THAVHANI DAVEYTON MORULENG BLOEMFONTEIN OSHAKATI SHOPPING SHOPPING MALL MALL PLAZA CENTRE CENTRE GAV R 444m R 433m R 427m R 410m R 408m Region Limpopo Gauteng North West Free State Namibia Gross Lettable Area
Slide 82: Retail Portfolio Composition
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL PORTFOLIO COMPOSITION 76% OF PORTFOLIO IN DEFENSIVE NON-URBAN ENVIRONMENT Rural Township Urban Value Centre Commuter Value R4.2bn R4.1bn R3.6bn R1.7bn R1.1bn 3 1 1 7 4% 1% 1% Number of properties 16 12 10 4 3 7% 4 3 2 GLA 259 490m² 216 516m² 167 681m²
Slide 83: Retail Category Exposure
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL CATEGORY EXPOSURE WELL DIVERSIFIED MIX OF TENANT CATEGORIES CATEGORY PROFILE BY RENT CATEGORY PROFILE BY GLA 30% Fashion 25% 13% Grocery/ Supermarket 21% 8% Banking 5% 7% Food 5% 7% Home Furnishings/ Décor 9% 4% Department Stores 7% 2% Cell Phones 1%
Slide 84: Retail Tenant Exposure
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL TENANT EXPOSURE WELL DIVERSIFIED BLUE CHIP TENANT MIX 32% OF RENT FROM ESSENTIAL SERVICES 57% OF RENT FROM TOP 20 TENANTS Pepkor - 8% Foschini - 7% Essential Pick n Pay - 6% Grocery/ Supermarket - 18% services 32% Shoprite - 6% Banking - 8% Mr Price -
Slide 85: Retail Tenant Exposure
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL TENANT EXPOSURE DIRECT SOUTHERN AFRICAN RETAIL PORTFOLIO TENANT PROFILE - BY CONTRACTUAL RENT TOP 10 TENANTS - BY CONTRACTUAL RENT Largest brand exposure 8.0 Other 2.6 2.5 19% 6.9 2.0 0.9 6.4 5.5 0.4 6.1 Top 10 4.7 0.6 tenants 4.5 2.4 45% 3.1 0.2 of R
Slide 86: FY2021 Retail Portfolio Performance Metrics
APPENDIX A FY2021 RETAIL PORTFOLIO PERFORMANCE METRICS Southern African Portfolio 86
Slide 87: Tenant Affordability
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 TENANT AFFORDABILITY CONSISTENTLY SOUND PORTFOLIO METRICS RETAIL VACANCY PROFILE BY GLA RETAIL AVERAGE BASE RENTALS R/M² (EXCL. RECOVERIES) 3.8% 3.9% 3.5% 141.43 146.40 3.2% 130.44 134.78 3.0% 2.9% 122.88 114.61 2016 2017 2018 2019 2020 2021 2016 2017 2018 2
Slide 88: Trading Densities
3. SOUTHERN AFRICAN RETAIL PORTFOLIO / ANNUAL RESULTS 31 MARCH 2021 TRADING DENSITIES ESSENTIAL SERVICES SHOWED POSITIVE GROWTH WHILE DISCRETIONARY CATEGORIES LAGGED AVERAGE ANNUAL TRADING DENSITY ANNUAL TRADING DENSITY GROWTH RENT-TO-SALES March 2020 March 2021 R29,183/m² 3.4% 6.0% Total 1.7% R29,2
Slide 89: Retail Portfolio Trading Statistics for Top Properties
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL PORTFOLIO TRADING STATISTICS FOR TOP 15 PROPERTIES CONTINUING TO PROVIDE VERY PROFITABLE CENTRES FOR OUR TENANTS Trading density growth (like-for-like) (1.2%) (1.4%) 0.8% (7.9%) 7.4% 5.0% 1.5% 9.7% 0.1% (1.5%) 11.3% (1.2%) (14.2%) 11.4% (6.5%) 1.7% An
Slide 90: Rent-to-Sales Ratio by Top Properties
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RENT-TO-SALES RATIO BY TOP 15 PROPERTIES CONTINUING TO PROVIDE VERY PROFITABLE CENTRES FOR OUR TENANTS 12.9% 9.1% 7.9% 7.6% 7.1% 6.6% 6.5% 6.3% 5.5% 5.3% 5.2% 5.1% 5.0% 5.0% 4.6% 4.5% East Rand Phoenix Plaza Bloemfontein Pine Crest Maluti Oshakati Thavhani M
Slide 91: Tenant Affordability
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 TENANT AFFORDABILITY RENT TO SALES HOLDING STEADY ACROSS THE PORTFOLIO THROUGH TOUGH MARKET CONDITIONS Average annual rent-to-sales ratio 12.9% 9.8% 8.7% 8.4% 9.0% 8.2% 5.7% 5.8% 6.1% 6.0% 6.0% 6.3% 5.6% 5.3% 5.1% 5.4% 5.0% 5.0% 4.1% 4.1% 4.3% Regional Stand
Slide 92: Retail Tenant Expiry Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL TENANT EXPIRY PROFILE 25% OF CONTRACTUAL RENT EXPIRING IN FY2025 AND BEYOND (WALE 2.7 YEARS) 100 85 75 53 34 19 22 34 15 10 March 2022 March 2023 March 2024 March 2025 Beyond March 2025 % of Contractual Rent Cumulative FOR THE 12 MONTHS ENDED 31 MARCH
Slide 93: Retail Vacancies
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL VACANCIES 36 PROPERTIES FULLY LET OR WITH VACANCIES LOWER THAN 1 000m² Fully Let Durban Phoenix Plaza Ga-Kgapane Modjadji Plaza Germiston Meadowdale Mall Giyani Plaza Hammarsdale Junction Makhado Nzhelele Valley Shopping Centre Mbombela Truworths Cent
Slide 94: Weighted Average Base Rentals R/m²
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 WEIGHTED AVERAGE BASE RENTALS R/m² (EXCLUDING RECOVERIES) SOUTHERN AFRICAN RETAIL PORTFOLIO Durban Phoenix Plaza Boksburg East Rand Mall Durban Workshop Windhoek 269 Independence Avenue Mbombela Truworths Centre Pinetown Pine Crest Daveyton Shopping Centre T
Slide 95: Ratio of Net Cost to Property Revenue – Retail Portfolio
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RATIO OF NET COST TO PROPERTY REVENUE – RETAIL PORTFOLIO INCREASED RATIO DURING COVID PANDEMIC, BUT STILL BELOW 2015 LEVELS COVID-19 IMPACT Average 17.2 19.3 18.5 Average 16.6 18.5 18.1 18.3 16.9 16.9 15.9 15.7 15.7 16.0 15.6 15.5 15.1 2015 2016 2017 2018 20
Slide 96: Asset Management Initiatives
APPENDIX A ASSET MANAGEMENT INITIATIVES Southern African Portfolio 96
Slide 97: Customer Centricity and Insights
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 CUSTOMER CENTRICITY AND INSIGHTS DEVELOPING CORE COMPETENCE IN CUSTOMER CENTRICITY TO DRIVE BETTER LEASING DECISIONS AND TENANT MIX 3 PRIMARY PILLARS OF CUSTOMER INSIGHTS JOURNEY OUT OF-MALL CUSTOMISED SHOPPER 1 Understand and interact with current INTERACTI
Slide 98: Energy and Water Management
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 ENERGY AND WATER MANAGEMENT ACHIEVEMENTS Impact on cost-to-income ratio > Electricity contributes 42% to total expenses > 7.5% of the portfolio’s electricity is generated by renewable resources, curbing our largest expense item by 110bps positive impact on t
Slide 99: Capital Projects
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 CAPITAL PROJECTS CONTINUOUS INVESTMENT IN PORTFOLIO – R63.7M OPERATIONAL CAPEX 35.0% 65.0% Roof and façade (R15.5m) Compliance (R14.4m) Aesthetics (R11.5m) HVAC (R5.4m) Electrical (R5.2m) CCTV and access control (R3.8m) Fire equipment (R3.2m) Elevator & esca
Slide 100: Valuation Methodology
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 VALUATION METHODOLOGY SOUTHERN AFRICAN PROPERTY PORTFOLIO Valuations are based on multiple assumptions which involve some subjectivity. The key is consistency in applying the SCIENCE VS. ART same methodology over time. We’ve applied consistent views and meth
Slide 101: FY2021 Total Portfolio Performance Metrics
APPENDIX A FY2021 TOTAL PORTFOLIO PERFORMANCE METRICS Southern African Portfolio 101
Slide 102: Southern African Total Portfolio Composition
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICAN TOTAL PORTFOLIO COMPOSITION TOP 15 ASSETS MAKE UP 60% OF THE TOTAL PORTFOLIO SECTORAL PROFILE - BY VALUE SECTORAL PROFILE - BY GLA By Value By GLA Top 15 95% Retail 90% Top 15 Properties Properties 2% Offices 3% 60% 2% Industrial 5% 46% of T
Slide 103: Southern African Total Portfolio Tenant Exposure
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICAN TOTAL PORTFOLIO TENANT EXPOSURE LOW RISK WITH 79% NATIONAL TENANTS TENANT PROFILE - BY CONTRACTUAL RENT TENANT PROFILE - BY OCCUPIED GLA Other Other 21% 20% Top 10 Diversified across Top 10 Tenants 1 192 tenants Tenants 42% 48% of Total Rent
Slide 104: Southern African Total Portfolio Tenant Expiry Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICAN TOTAL PORTFOLIO TENANT EXPIRY PROFILE 25% OF CONTRACTUAL RENT EXPIRING IN FY2025 AND BEYOND (WALE 2.8 YEARS) % OF CONTRACTUAL RENT % of Contractual Rent Cumulative 100 84 75 53 34 9 16 34 22 19 March 2022 March 2023 March 2024 March 2025 Bey
Slide 105: Southern African Total Portfolio Vacancy Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICAN TOTAL PORTFOLIO VACANCY PROFILE VACANCY CONTAINED AT 3.9% OF GLA 30.9 VACANCY 3.9% 9.3 OF GLA 7.5 8.7 2.9 3.2 3.5 4.3 3.4 3.9 Retail Offices Industrial Residential Total 15.5 12.2 VACANCY 10.9 6.9 3.8% 6.5 OF RENT 5.6 3.5 3.8 2.9 3.1 Retail
Slide 106: Contracted Rental Escalation Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICAN TOTAL PORTFOLIO CONTRACTED RENTAL ESCALATION PROFILE RENTAL ESCALATIONS STILL AHEAD OF INFLATION 7.8 7.7 7.6 7.5 7.6 6.9 7.0 7.0 6.9 6.7 6.7 6.6 6.5 - - Retail Offices Industrial Motor Related Total Mar-20 Mar-21 Recent new leases and renewa
Slide 107: Weighted Average Base Rentals – R/m²
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICAN TOTAL PORTFOLIO WEIGHTED AVERAGE BASE RENTALS – R/m² EXCLUDING RECOVERIES 7.0% 3.5% 183.90 (1.7%) 4.7% 171.87 3.5% 146.40 142.94 141.43 140.48 141.26 134.98 106.52 110.23 (2.2%) 61.41 60.05 Retail Offices Industrial Motor Related Residential
Slide 108: Ratio of Cost to Property Revenue
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SOUTHERN AFRICAN TOTAL PORTFOLIO – RATIO OF COST TO PROPERTY REVENUE NET COST TO PROPERTY REVENUE CONTAINING COST RATIOS Average 16.8 Average 16.2 18.2 18.0 17.8 16.4 16.0 15.3 15.3 15.1 16.1 15.0 15.5 15.3 18.5 18.1 2015 2016 2017 2018 2019 2020 2021 All ex
Slide 109: Portfolio Overview – Spanish Portfolio
APPENDIX B PORTFOLIO OVERVIEW Spanish Portfolio 109
Slide 110: Our Portfolio
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 OUR PORTFOLIO WELL DIVERSIFIED ACROSS SPAIN 9 4% 1 El Faro 10 Marismas de Polvorín 5 9% 2 Bahía Sur 11 Alcobendas Building 11 3 Los Arcos 12 La Heredad 8 7% 17 4 Granaita 13 La Serena 16 20% 5 Vallsur 14 Pinatar Park 12 9% 6 Habaneras 15 Motril Retail Park 1
Slide 111: Spanish Portfolio Overview
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SPANISH PORTFOLIO OVERVIEW TOP 10 ASSETS EL FARO BAHÍA SUR LOS ARCOS GRANAITA (1) VALLSUR GAV €159.4m €140.8m €135.9m €105.7m €87.2m Province Badajoz Cádiz Seville Granada Valladolid Catchment Area (Inhabitants) 517 491 674 250 1 499 884 628 002 477 746 Gros
Slide 112: Spanish Portfolio Overview
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SPANISH PORTFOLIO OVERVIEW TOP 10 ASSETS PUERTA PARQUE PARQUE MARISMAS DEL HABANERAS OESTE (1) EUROPA PRINCIPADO POLVORÍN GAV €83.8m €65.0m €49.0m €34.6m €26.7m Province Alicante Cádiz Madrid Oviedo Huelva Catchment Area (Inhabitants) 531 670 311 110 5 856 3
Slide 113: Tenant Mix
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 TENANT MIX HIGHLY DIVERSIFIED RETAIL MIX LEADING TO SUSTAINABLE, HIGH QUALITY AND LOW RISK INCOME STREAMS ASSETS GLA WALE (1) OCCUPANCY 16 350 271m² 13.6 years 98.2% CATEGORY PROFILE BY RENT TOP 10 TENANTS BY RENT 31 MARCH 2021 31 MARCH 2021 Fashion & Access
Slide 114: Spanish Total Portfolio Composition
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SPANISH TOTAL PORTFOLIO COMPOSITION SECTORAL PROFILE - BY VALUE SECTORAL PROFILE - BY GLA Development Offices potential Offices 5% 1% 3% Retail Parks 29% Top 10 Shopping Top 10 Properties Centres Retail Parks properties 90% 67% 43% 80% Shopping Centres 52% G
Slide 115: Retail Tenant Exposure
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL TENANT EXPOSURE 94% INTERNATIONAL AND NATIONAL TENANT PROFILE PROVIDING PROTECTION AGAINST THE EFFECTS OF THE PANDEMIC TOP 10 TENANT GROUPS BY RENT TENANT GROUP PROFILE - BY CONTRACTUAL RENT INDITEX 11.5% ZARA 3.8% BERSHKA 1.7% STRADIVARIUS 1.4% Local
Slide 116: FY2021 Operational Review – Spanish Portfolio
APPENDIX B FY2021 OPERATIONAL REVIEW Spanish Portfolio 116
Slide 117: Spanish Vacancy Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SPANISH VACANCY PROFILE PORTFOLIO VACANCY OF 1.7% OF GLA (1) Shopping Centres Vallsur (35,212m²) 2.8% 3.9% El Faro (38,732m²) 1.8% 3.2% Puerta Europa (29,783m²) 0.7% 3.1% Bahía Sur (34,066m²) 1.4% 3.0% Los Arcos (24,321m²) 4.8% 1.2% Habaneras (25,021m²) 2.5%
Slide 118: Retail Lease Expiry Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL LEASE EXPIRY PROFILE 52% OF CONTRACTUAL RENT EXPIRING IN FY2031 AND BEYOND (WALE 11.2 YEARS TO EXPIRY AND 2.8 YEARS TO BREAK) EXPIRY PROFILE (% RENT) 100 48 44 48 52 31 34 39 17 25 7 12 8 6 5 5 7 5 5 3 4 4 Mar/22 Mar/23 Mar/24 Mar/25 Mar/26 Mar/27 Mar
Slide 119: Retail Lease Expiry Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 RETAIL LEASE EXPIRY PROFILE 65% OF CONTRACTUAL GLA EXPIRING IN FY2031 AND BEYOND (WALE 13.6 YEARS TO EXPIRY AND 3.0 YEARS TO BREAK) EXPIRY PROFILE (% GLA) 100 62 32 35 38 18 21 23 27 7 10 12 2 3 2 6 3 2 4 5 3 3 2 5 Vacant Mar/22 Mar/23 Mar/24 Mar/25 Mar/26 M
Slide 120: Growth Drivers and Asset Management Initiatives
APPENDIX B GROWTH DRIVERS AND ASSET MANAGEMENT INITIATIVES Spanish Portfolio 120
Slide 121: Shopping Centres Considered Safe Spaces
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SHOPPING CENTRES CONSIDERED SAFE SPACES CUSTOMERS TRUST IN OUR ASSETS AND RETURN TO OUR MALLS AS SOON AS RESTRICTIONS ARE LIFTED In Castellana Properties, we have adapted our malls to keep creating exciting leisure activities…. > New booking system through t
Slide 122: Taking Advantage of the Entire Portfolio
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 TAKING ADVANTAGE OF THE ENTIRE PORTFOLIO BUILDING EXCITING AND IMPACTFUL EVENTS ACCROSS THE PORTFOLIO TO PUSH TENANT’S SALES, AS WELL AS ENSURING BROADER COMMUNITY BENEFITS +20% +15% 9K 11,6 K €386 K €35.9 5,2 K FOOTFALL RESTAURANTS NEW PARTICIPANTS INCENTIV
Slide 123: Repositioning Project – El Faro
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 REPOSITIONING PROJECT – EL FARO €0.25m 15 7,847.6 m² 82.9% ADDITIONAL NOI CREATED NEW BRANDS GLA AFFECTED SIGNED AND COMMITTED CONTRACTS YELMO BURGER KING POMODORO FOSTER’S HOLLYWOOD 123
Slide 124: Repositioning Project – Bahia Sur
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 REPOSITIONING PROJECT – BAHIA SUR €2.25m 17 19,319.1 m² 95.2% ADDITIONAL NOI CREATED NEW BRANDS GLA AFFECTED SIGNED AND COMMITTED CONTRACTS YELMO ZARA LEFTIES JD SPORTS ESPAÇO CASA 124
Slide 125: Repositioning Project – Los Arcos
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 REPOSITIONING PROJECT – LOS ARCOS €1.36m 19 10,729.3 m² 86.9% ADDITIONAL NOI CREATED NEW BRANDS GLA AFFECTED SIGNED AND COMMITTED CONTRACTS MERCADONA MEDIA MARKT ESPAÇO CASA DECIMAS 125
Slide 126: Spanish Economic Fundamentals
APPENDIX B SPANISH ECONOMIC FUNDAMENTALS Spanish Portfolio 126
Slide 127: Impact on Spanish Economy
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 IMPACT ON SPANISH ECONOMY BOND YIELDS AT ALL TIME LOWS 10-YEAR GOVERNMENT BONDS (YIELD %) BID YIELD (%) 31 MARCH 2021 17 3.5 3.24 14 3.0 2.5 11 2.0 8 1.58 1.5 5 1.0 0.85 2 0.67 0.5 0.34 0.23 -1 UK Spain Germany France Portugal Italy Poland Romania 0.0 -0.05
Slide 128: Impact on Spanish Economy
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 IMPACT ON SPANISH ECONOMY ˃ UNEMPLOYMENT STILL BELOW 2012 PEAK CONSUMER CONFIDENCE (CIS) UNEMPLOYMENT(1) IN SPAIN BY ECONOMIC SECTOR Million 120 5 100 102 97 4 86 87 86 80 81 77 78 73 3 63 63 66 60 61 53 50 56 56 50 53 50 49 2 40 20 1 0 0 Jun Jul Aug Sep Oct
Slide 129: Real Estate Market Spain
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 REAL ESTATE MARKET SPAIN ˃ Prime rents in Spain and Germany have proven more resilient PRIME SPANISH SHOPPING CENTRE RENTS VS REST OF EUROPE (€/m²/MONTH) 260 246 241 210 167 167 160 120 110 105 90 85 60 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 130: Financial Performance, Debt and Treasury
APPENDIX C FINANCIAL PERFORMANCE, DEBT AND TREASURY 130
Slide 131: Geographical Segment Analysis
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 GEOGRAPHICAL SEGMENT ANALYSIS SOUTHERN AFRICAN PORTFOLIO LESS IMPACTED BY COVID-19 RENT CONCESSIONS YEAR ENDING 31 MARCH 2020 YEAR ENDING 31 MARCH 2021 44% 33% REVENUE REVENUE 56% 67% 48% 34% NET NET PROPERTY PROPERTY 52% 66% INCOME INCOME Spain Southern Afr
Slide 132: Analysis of Group Loan Repayment and Hedging Expiry Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 ANALYSIS OF GROUP LOAN REPAYMENT AND HEDGING EXPIRY PROFILE WELL HEDGED WITH LOW RISK EXPIRY PROFILE GROUP LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 65.0% R1.9bn OF AVAILABLE UNDRAWN BANK FACILITIES. AFTER YEAR-END INCREASED TO R3.5BN 36.7% 78% OF
Slide 133: Analysis of Southern African Loan Repayment and Hedging Expiry Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 ANALYSIS OF SOUTHERN AFRICAN LOAN REPAYMENT AND HEDGING EXPIRY PROFILE WELL HEDGED WITH LOW RISK EXPIRY PROFILE SOUTHERN AFRICAN LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE 39.5% 64% OF INTEREST-BEARING DEBT HEDGED 26.1% 24.3% 3.3 years FIXED RATE 34
Slide 134: Analysis of Castellana Loan Repayment and Hedging Expiry Profile
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 ANALYSIS OF CASTELLANA LOAN REPAYMENT AND HEDGING EXPIRY PROFILE LOW REFINANCE RISK OVER THE NEXT FIVE YEARS CASTELLANA LOAN AND HEDGING (SWAP & FIXED DEBT) EXPIRY PROFILE (1) 81.6% 65.0% 88% OF INTEREST-BEARING DEBT HEDGED 2.2 years FIXED RATE (SWAP & FIXED
Slide 135: Cost of Funding
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 COST OF FUNDING MARGINAL CHANGE IN GROUP COST OF FINANCE DUE TO HIGHER PROPORTION OF ZAR FUNDING GROUP DEBT BY CURRENCY 9.30% 8.02% 8.05% 2.53% 2.60% 2.61% 3.95% 3.74% 3.88% R18.5bn R17.0bn R15.4bn R14.8bn R12.9bn R11.5bn R4.1bn R3.9bn R3.5bn ZAR EUR Total D
Slide 136: Consolidated Net Exposure by Currency at Year End
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 CONSOLIDATED NET EXPOSURE BY CURRENCY AT YEAR END AT 31 MARCH 2021 ZAR Exposure EUR Exposure Group Rm €m Rm Vukile property value R15 722 R15 722 Arrowhead & Fairvest equity value R847 R847 Castellana property value €987 R17 095 Total direct property and lis
Slide 137: Proforma Consolidated Net Exposure by Currency
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 PROFORMA CONSOLIDATED NET EXPOSURE BY CURRENCY POST YEAR-END, INCLUDING CCIRS SETTLEMENT AND IMPACT OF EUR DEBT CONVERSION TO ZAR ZAR Exposure EUR Exposure Group Rm €m Rm Vukile property value R15 722 15 722 Arrowhead & Fairvest equity value R847 R847 Castel
Slide 138: Composition of Group Balance Sheet
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 COMPOSITION OF GROUP BALANCE SHEET MATCHING DEBT WITH ASSETS OVER TIME FY2020 FY2021 R38.5bn R36.3bn 2% R37.0bn Castellana cash 2% 2% R34.7bn 2% Castellana property 51% 47% 52% 49% R18.5bn Listed investments R17.0bn 6% R15.5bn 4% 2% R15.4bn Vukile cash 1% 2%
Slide 139: Forecast LTV Sensitivity to Valuation and Foreign Exchange
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 FORECAST LTV SENSITIVITY TO VALUATION AND FOREIGN EXCHANGE MOVEMENTS AT 31 MARCH 2021 5% STRENGTHENING TO 3% INCREASE IN 1.7% DECREASE IN EXAMPLE: 16.45 PROPERTY VALUATION THE GROUP LTV Property valuation movement -12% -10% -7% -5% -3% -1% 0% 1% 3% 5% 7% 10%
Slide 140: Cross Currency Interest Rate Swap Exposure
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 CROSS CURRENCY INTEREST RATE SWAP EXPOSURE LIMITED USE OF CROSS CURRENCY INTEREST RATE SWAPS > No new CCIRS were entered during the year > The CCIRS ratio to total value of international investments (on a consolidated basis) is 37.7% > The MtM loss of CCIRS
Slide 141: Corporate Bond Issuances
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 CORPORATE BOND ISSUANCES COMPOSITION OF SECURED AND UNSECURED DEBT Corporate Bonds Security Amount Reference Rate Margin Maturity Date Initial Term VKE10 Secured R194m 3M JIBAR 1.80% 08 July 2022 5.2 years VKE11 Unsecured R175m 3M JIBAR 1.75% 20 April 2023 5
Slide 142: Overview of DMTN Secured Property Portfolio
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 OVERVIEW OF DMTN SECURED PROPERTY PORTFOLIO Direct No. of GLA Average property properties property value R676m (A) 2 39 124m² R338m Retail rent from Contractual rental Income from top WALE national tenants escalation 10 tenants of 84% 6.9% 49% 4.3 years Reta
Slide 143: Overview of Unencumbered Assets
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 OVERVIEW OF UNENCUMBERED ASSETS Total Unencumbered Unencumbered Number GLA unencumbered direct listed of assets property shares properties R6 606m (A) R3 795m R2 811m 26 305 749m² Average property Retail rent from Contractual rental Income from top WALE valu
Slide 144: See-Through Loan-to-Value Ratio
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 “SEE-THROUGH” LOAN-TO-VALUE RATIO Interest bearing Property debt assets Cash LTV Shareholding Rm Rm Rm Vukile Company, MICC and 100% of Clidet No. 1011 6 699 15 722 423 39.9% 100.0% Castellana 8 705 17 095 564 47.6% 82.5% Fairvest 1 107 3 338 18 32.6% 26.6%
Slide 145: Undrawn Facilities
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 UNDRAWN FACILITIES UNDRAWN BANK FACILITIES INCREASED TO R3.5bn AFTER YEAR-END (FROM R1.1bn AT 31 MARCH 2020) Facility amount Amount drawn Undrawn Rm Rm Rm ABSA multicurrency revolving credit facility (ZAR portion) 672 0 672 ABSA multicurrency revolving credi
Slide 146: MEREV Option
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 MEREV OPTION EXTENDED FOR 3 YEARS > New maturity 31 July 2024 > No adjustment in Sales Price of €6.50 (Strike Price) > Vukile to guarantee a 6% yield on Castellana’s dividend > RMB have provided R1.0bn of new facilities as part of the MEREV extension, which
Slide 147: SA REIT Ratios
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 SA REIT RATIOS 31 March 2021 31 March 2020 SA REIT funds from operations R1,24bn R1,81bn SA REIT funds from operations per share 129.89 c/share 188.97 c/share SA REIT net asset value R16,4bn R17,4bn SA REIT net asset value per share R17.17/share R18.18/share
Slide 148: Notes to Treasury Management Slides
APPENDICES / ANNUAL RESULTS 31 MARCH 2021 NOTES TO TREASURY MANAGEMENT SLIDES ALIGNED WITH INDUSTRY BEST STANDARDS 1. Loan-to-Value ratio calculated as a ratio of nominal interest-bearing debt less cash and cash equivalents (excluding restricted cash) divided by the sum of (i) the amount of the most