Octodec Investments Limited · JSE:OCT
Octodec Investments — H1 2020 Earnings Presentation
25 slides from Octodec Investments's earnings presentation, Apr 22, 2020
Slide 1: Unaudited interim results for the six months ended 29 February 2020
Unaudited interim results for the six months ended 29 February 2020
Slide 2: 2020 Performance Highlights
2020 PERFORMANC HIGHLIGHTS i ul l 0 R27.61| 2.2% | 91.7% 9.3% ; / all-in annual net asset | like-for-like | of exposure 39.3% weighted value per growth in to interest average share rental rate risk is loan to value cost of (FY2019: income hedged (FY2019: borrowings R28.47) (FY2019: (FY2019: 38.9%) (
Slide 3: Contents
CONTENTS OMWON DAWA TAK WO WDM PD Commentary Review of results Dividends Revenue Vacancies Lease expiry profile Cost-to-income ratios Arrears Investment property Borrowings SA REIT association best practice recommendations Events after the reporting date Changes to the board and committees Prospects
Slide 4: Commentary
COMMENTARY Octodec Investments Limited (Octodec, the company), its subsidiaries and associated company (the group) is a real estate investment trust (REIT), listed on the JSE Ltd, with a portfolio of 280 properties valued at R12.6 billion. The group is one of the major owners of property in the Tshw
Slide 5: Dividends and Revenue
DIVIDENDS COVID-19 as well as the downgrading of the country’s sovereign credit rating to subinvestment grade is expected to have a major impact on South Africa’s economy, which will in turn also impact Octodec’s ability to fund the group's capital expenditure and maintain an acceptable loan to valu
Slide 6: Vacancies
VACANCIES Vacancies in the Octodec portfolio as at 29 February 2020, including properties held for re-development, amounted to 17.9% (FY2019: 17.7%) of the gross lettable area (GLA). The group's core vacancies, which exclude the GLA relating to properties held for re-development amounted to 11.7% (F
Slide 7: Lease Expiry Profile
LEASE EXPIRY PROFILE The majority of the leases provide for a monthly agreement at expiry of the lease. On expiry an effort is made to conclude longer term leases. This is especially typical of the residential market and leases with small to medium-sized enterprises. The lease expiry profile remains
Slide 8: Cost-to-Income Ratios
COST-TO-INCOME RATIOS 29 February 28 February 31 August 2020 2019 2019 % % % Property costs Gross basis 47.2 46.1 46.7 Net basis (net of recoveries) 31.7 30.9 31.6 Total property and administration costs Gross basis 51.8 50.1 50.6 Net basis (net of recoveries) 37.7 36.1 36.7 Property costs, both on
Slide 9: Investment Property
INVESTMENT PROPERTY Developments During the current year, Octodec did not undertake any significant new developments but rather focused on maintaining and carrying out smaller upgrades of older properties to ensure that they remain relevant and attractive to tenants. The upgrade of The Park (previou
Slide 10: Borrowings
BORROWINGS Borrowings as at 29 February 2020 Weighted average interest Amount rate per annum R’million % Bank loans 4001.6 8.6 Domestic Medium Term Note (DMTN) Programme Unsecured 538.8 8.2 Secured (unlisted high-quality liquid assets) 365.5 8.5 Total borrowings 4905.9 8.5 Cost of swaps - 0.8 Total
Slide 11: SA REIT Association Best Practice Recommendations and Events After Reporting Date
SA REIT ASSOCIATION BEST PRACTICE RECOMMENDATIONS The SA REIT Association issued a second edition BPR, which deals with best practice reporting for South African REITs. The second edition BPR is effective for financial years starting 1 January 2020. Octodec is currently assessing the BPR and will en
Slide 12: Changes to the Board and Committees
CHANGES [O_IHE BOARD AND COMMITTEES Euniccah Maggie Sethololo Mojapelo (Maggie) and Louis Pieter van Breda (Louis) were appointed as independent non-executive directors effective from 1 March 2020. In addition, Maggie has been appointed to the social, ethics, remuneration and transformation committe
Slide 13: Notes to the Condensed Consolidated Interim Financial Statements
NOTES [O [HE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS —__ Basis of preparation The condensed consolidated interim financial statements are prepared in accordance with the JSE Ltd Listings Requirements (Listings Requirements) and the requirements of the Companies Act, No 71 of 2008 (Compan
Slide 14: Investment property
Investment property Investment properties are valued biannually by a dedicated valuation team at City Property and the portfolio valuation is reviewed and approved by the board. In terms of the Listings Requirements, all the properties are valued at least once over a rolling three-year period by ext
Slide 15: Fair value hierarchy of financial and non-financial assets
The following table reflects the levels within the fair value hierarchy of financial and non-financial assets measured at fair value at 29 February 2020 and 31 August 2019: 29 February 2020 31 August 2019 Level 2 Level 3 Level 2 Level 3 R’000 R’000 R’000 R’000 Derivative financial instruments Assets
Slide 16: Condensed Consolidated Statement of Financial Position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION __ Unaudited Unaudited Audited 29 February 28 February 31 August 2020 2019 2019 R’000 R’000 R’000 ASSETS Non-current assets 12 565 863 12 765 459 12 733 048 Investment property 12 337 631 12 521 319 12 500 173 Plant and equipment 742 277i 1841 S
Slide 17: Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
CONDENSED. CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME _ Unaudited Unaudited Audited six months six months 12 months 29 February 29 February 31 August % 2020 2019 2019 change R’000 R’000 R’000 Revenue 2.9 1 004 561 976 180 1 982 695 earned on contractual basis 3.0 1 007 1
Slide 18: Condensed Consolidated Statement of Changes in Equity
CONDENSED. CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Non- distributable Retained Stated capital reserve earnings Total R’000 R’000 R’000 R’000 Balance at 31 August 2018 (audited) 4210 134 3 262 710 351 554 7 824 398 Total comprehensive income for the period - - 209 585 209 585 Dividends paid = = (
Slide 19: Condensed Consolidated Statement of Cash Flows
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited Unaudited Audited six months six months 12 months 29 February 28 February 31 August 2020 2019 2019 R’000 R’000 R’000 Cash flows from operating acti Net rental income from properties 482 377 486 255 974 586 Adjusted for : straight-line rental i
Slide 20: Reconciliation of Profit or Loss to Headline Earnings
RECONCILIATION OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME TO HEADLINE EARNINGS _ Unaudited Unaudited Audited six months six months 12 months 29 February 28 February 31 August 2020 2019 2019 R’000 R’000 R’000 Total comprehensive income attributable to shareholders 34 501 209 585 295 647 Headlin
Slide 21: Condensed Consolidated Segmental Information
CONDENSED CONSOLIDATED SEGMENTAL INFORMATION Unaudited Unaudited six months six months 29 February 28 February 2020 2019 R’000 % R’000 % Rental income by sector Retail 255 348 32.8 257 029 33.7 Offices 126 899 16.3 120 807 15.8 Residential 244 188 31.4 241 788 31.7 Industrial 56 620 7.3 54 582 te Sp
Slide 22: Reconciliation of Earnings to Distributable Earnings
LU Sere RECONCILIATION OF EARNINGS [O DISTRIBUTABLE EARNINGS Unaudited Unaudited Audited six months six months 12 months 29 February 28 February 31 August 2020 2019 2019 % R’000 R’000 R’000 Total comprehensive income attributable to shareholders 34 501 209 585 295 647 Profit on sale of investment pr
Slide 23: Octodec_Interim_results_14611_2020_V5b_20200421_JM_FLAT
Octodec_Interim_results_14611_2020_V5b_20200421_JM_FLAT
Slide 24: GREYMATTERFINCH # 14611
GREYMATTERFINCH # 14611
Slide 25: www.octodec.co.za
Pie dooooooo www.octodec.co.za