Accelerate Property Fund Ltd. · JSE:APF
Accelerate Property Fund — H1 FY2022 Earnings Presentation
33 slides from Accelerate Property Fund's earnings presentation, Sep 30, 2021
Slide 1: Interim Results Consolidated for the period ended 30 September 2021
INTERIM RESULTS CONSOLIDATED for the period ended 30 September 2021
Slide 2: Contents
Contents 02 OPERATING LANDSCAPE AND IMMEDIATE FOCUS AREAS 03 Market trends 04 COVID-19 impact 05 Immediate focus 06 FINANCIAL PERFORMANCE 17 PORTFOLIO PERFORMANCE 07 Consolidated statement of financial position 18 Portfolio overview 08 Consolidated statement of profit or loss 19 Office 09 Debt facil
Slide 3: Operating Landscape and Immediate Focus Areas
And immediate focus areas OPERATING LANDSCAPE 03 Market trends and COVID-19 impact 05 Immediate focus
Slide 4: Market trends and COVID-19 impact
Market trends and COVID-19 impact 1 Increased economic activity after COVID-19 COVID-19 IMPACT ON PROPERTY SECTOR • Hard and adjusted lockdown restrictions have eased • Increased retail and office vacancies • Increased consumer sentiment aligning to global • Withdrawal of international retailers fro
Slide 5: Market trends and COVID-19 impact (continued)
Market trends and COVID-19 impact (continued) RECOVERY OF THE SOUTH AFRICAN EFFECT ON THE PORTFOLIO ECONOMY FOLLOWING THE • Fourways Mall has gained traction with the public as customers are COVID-19 PANDEMIC. increasing the frequency of their visits • Rental relief has significantly reduced as reta
Slide 6: Immediate Focus
Immediate Focus The interim period ended 30 September 2021 has IMPACT been one of further consolidation for the Fund. The Fund’s approach to COVID-19 has been clear, structured and well executed. We remain focused R11 million WALE on the long-term sustainability of the Fund and its (30 Sept 2020: R
Slide 7: Financial Performance
Performance FINANCIAL 07 Consolidated statement of financial position 08 Consolidated statement of profit or loss 09 Debt facilities 11 Long-term debt 12 Covenant changes
Slide 8: Consolidated statement of financial position
Consolidated statement of financial position 30 September 2021 31 March 2021 (R’000) (R’000) ASSETS Non-current assets 10 332 445 11 791 005 Investment property 10 199 681 11 633 782 Derivatives 12 997 36 341 Right-of-use asset 119 553 120 676 Equipment 214 206 Current assets 719 246 644 256 Trade a
Slide 9: Consolidated statement of profit or loss
Consolidated statement of profit or loss For the period ended For the period ended 30 September 2021 30 September 2020 (R’000) (R’000) Revenue, excl. straight-line rental revenue adjustment 513 210 511 648 COVID-19 rental assistance (11 233) (100 086) Straight-line rental revenue adjustment 55 112 4
Slide 10: Debt facilities (overall fund level)
Debt facilities (overall fund level) WEIGHTED TOTAL AVERAGE DEBT DEBT DEBT TERM* HEDGED LTV** R5,9 billion 1,6 years 86,3% 47,8% Funding split (%) (March 2021: (March 2021: (March 2021: (March 2021: R6,0 billion) 1,8 years) 81,4%) 48,5%) 8,0 WEIGHTED BLENDED 92,0 AVERAGE INTEREST INTEREST SWAP TERM
Slide 11: Debt facilities (security SPV – Accelerate listed debt SPV)
Debt facilities (security SPV 1 – Accelerate listed debt SPV) WEIGHTED TOTAL AVERAGE DEBT DEBT DEBT TERM* HEDGED LTV R3,2 billion 1,5 years 81,0% 44,9% Funding split (%) (March 2021: (March 2021: (March 2021: (March 2021: R3,3 billion) 1,8 years) 84,0%) 46,1%) 15,4 WEIGHTED BLENDED 84,6 AVERAGE INTE
Slide 12: Long-term debt
Long-term debt Debt expiry profile (Rm) KEY TAKE AWAYS 1 000 ✓ All expiries post-period end have been 800 refinanced 600 ✓ R1,3 billion of capital market debt refinanced 400 during the period 200 ✓ Overall cost of funding 7,4% 0 Oct Nov Dec Mar May Jun Aug Sep Nov Jan Feb Apr Jun Jul Aug Sep Nov Dec
Slide 13: Covenant changes
Covenant changes TEMPORARY COVENANT CHANGES NEGOTIATED AND APPROVED The changes are as follows: Existing 30 September 31 March 30 September 31 March Measurement period ending covenant 2020 2021 2021 2022 LTV ratio Fund level 50,0% 55,0% 55,0% 55,0% 50,0% Special purpose vehicle (SPV) 1 45,0% 55,0% 5
Slide 14: Operating Performance
Performance OPERATING 14 Leasing 16 Vacancy profile
Slide 15: Leasing – Lease expiry profile and escalations
Leasing – Lease expiry profile and escalations Lease expiry profile by gross rental (%) KEY TAKE AWAYS 20 ✓ Lease expiry profile one of the best in the 15 market 10 ✓ Downward pressure on contractual escalations expected to ease off 5 0 Sept 2022 Sept 2023 Sept 2024 Sept 2025 > Sept 2025 WALE (OVERA
Slide 16: Leasing – Tenant retention and rental reversions
Leasing – Tenant retention and rental reversions Tenant KEY TAKE AWAYS arrears (R’000) 120+ days 90 days 60 days 30 days Total ✓ Overall rental reversion marginally negative 3o September 37 551 4 591 5 459 6 305 53 906 ✓ Lower tenant retention due to loss of large 2021 industrial tenant Expired New
Slide 17: Vacancy profile
Vacancy profile Vacancy % KEY TAKE AWAYS 50% ✓ Office vacancies relates predominantly to 40% B- and C-grade office space 30% ✓ Industrial vacancy increased due to a fully let 20% Industrial property being sold 10% ✓ Offshore portfolio at 0% vacancy 0% Industrial Office Retail European Fourways Total
Slide 18: Portfolio Performance
Performance PORTFOLIO 18 Portfolio overview 19 Office 20 Retail 24 European retail
Slide 19: Portfolio overview
Portfolio overview GLA Value Revenue Retail 51,9% 61,7% 59,2% Office 26,9% 23,7% 24,5% Industrial 7,6% 1,4% 3,5% European retail 13,6% 13,2% 12,8% 18 ACCELERATE PROPERTY FUND Consolidated Interim Results 30 September 2021
Slide 20: Office portfolio
Office portfolio LEADING TENANTS Our P-grade and A-grade offices are situated Properties: Vacancy by Oceana in strategic nodes in Sandton and Fourways 16 GLA Bytes in Gauteng, and on the Foreshore in the (2020: 16) Western Cape. 29,2% Citibank EXL PERFORMANCE OVERVIEW Lindt • Quality office portfoli
Slide 21: South African Retail portfolio overview
South African Retail portfolio overview Our retail portfolio includes a diverse selection Properties: Vacancy by of malls and shopping centres, differentiated GLA 15 through our shoppertainment offering. 11,1%* PERFORMANCE OVERVIEW • Regional and super-regional trading figures consistently improving
Slide 22: Retail Fourways Mall Super-regional
Retail Fourways Mall Super-regional Tenants A landmark super-regional shopping centre at the heart of our 340 Fourways node. REBUILT CLAIM GLA • The rebuilt claim relating to the Fourways Mall equalisation in 2019 has been finalised between the owners without cash outflow from 89 619 m2 (APF 50%) th
Slide 23: Retail Cedar Square
Retail Cedar Square A lifestyle and family centre VALUE PROPOSITION Stores • Located in the densely populated Fourways node 81 • Open layout preferred in COVID-19 world • Family, lifestyle, shopping and entertainment GLA PERFORMANCE OVERVIEW 44 418 m2 • Trading density returned to pre-COVID-19 level
Slide 24: Retail Eden Meander
Retail Eden Meander A multi-tenanted lifestyle shopping centre serving the residential hub of George in the Western Cape. ANCHOR TENANTS Stores VALUE PROPOSITION 46 @Home • Popular location on route to Knysna and across from the Garden Checkers Route Mall Pick ‘n Pay Clothing • Fast growing resident
Slide 25: European retail
European retail Our European portfolio has remained resilient Properties 100% throughout the pandemic and delivered solid occupied by nine returns. nine big box OBI PERFORMANCE OVERVIEW stores • The portfolio was externally valued at GLA €89,05 million in June 2021 65 893 m2 • As communicated to the
Slide 26: Outlook
AOOTLNO _| PROUD WINNERS OF EME. FINANCE’S ~| BESTSYNDICATED LOA i
Slide 27: Outlook
Outlook We believe the impact of COVID-19 going forward is starting to dissipate. While the portfolio continues to recover in terms of trading and foot count, we believe that it will be another 12 to 18 months before these settle at pre-COVID-19 levels. The underperforming economy also continues to
Slide 28: Annexures
ANNEXURES 28 ANNEXURE 1 Property portfolio summary 30 ANNEXURE 2 Our Fourways exposure
Slide 29: Property portfolio summary
Property portfolio summary SECTOR AND GEOGRAPHIC SUMMARY Sector profile by revenue (%) Sector profile by GLA (%) 12,8 13,6 24,5 26,9 3,5 7,6 59,2 51,9 Office Industrial Retail European retail – single tenant Office Industrial Retail European retail Geographic profile by revenue (%) Geographic profil
Slide 30: Property portfolio summary continued
Property portfolio summary continued TENANT PROFILE Tenant profile by GLA (%) Single vs multi-tenanted by GLA (%) 14,5 33,7 16,8 68,7 66,3 A B C Single Multi A: Large national tenants, large listed tenants and major franchises, including Absa Bank, Capitec Bank, Dis-Chem, Edcon, FNB, Foschini, Jet S
Slide 31: Our Fourways exposure
Our Fourways exposure OUR FOURWAYS FOOTPRINT PROPERTIES 1 Fourways Mall 11 2 Leroy Merlin (not owned by APF) 3 Cedar and BMW bulk 6 2 4 4 Cedar Square Shopping Centre 3 1 5 BMW Fourways 5 8 6 Valleyview Centre 7 10 9 7 The Buzz Shopping Centre 8 The Buzz bulk 9 Waterford 10 FORD Fourways 11 The Leap
Slide 32: Thank you
THANK YOU INVESTOR RELATIONS Articulate Capital Partners: Morné Reinders Tel: 082 480 4541 Email: morne@articulatepartners.com ACCELERATE PROPERTY FUND Consolidated Interim Results 30 September 2021
Slide 33: Disclaimer
Disclaimer This presentation is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published in whole or in part for any other purpose. This presentation does not constitute an offer or invitation to subs
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