Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — Investor Presentation (November 2012)
18 slides from Emira Property Fund's investor presentation, November 2012
Slide 1: Investor Update
NOVEMBER 2012 INVESTOR UPDATE
Slide 2: Agenda
November 2012 AGENDA Operational Update Property Management Tender Staff Structure Balance Sheet Restructuring Wonderpark Shopping Centre Extensions Financial Outlook Investment Case 2
Slide 3: Vacancy Profile at Oct '12 by GLA
November 2012 VACANCY PROFILE AT OCT ’12 BY GLA 25% 19.8% 20% 18.6% 16.7% 15% 11.3% 10.2% 10% 9.2% 8.2% 6.5% 5.0% 4.4% 5% 4.1% 3.2% 0% Office Retail Industrial Portfolio Dec 2011 Jun 2012 Oct 2012 • Overall vacancies have declined further in the year-to-date • Excluding the refurbishment and redevel
Slide 4: Portfolio: Tenant Retention
November 2012 PORTFOLIO: TENANT RETENTION 12 months to Jun 12 4 months to October 12 m² No of leases m² No of leases Expiring 324 950 765 123 834 228 Renewed 211 310 426 93 154 162 As a % 65% 56% 75% 71% • Offices = 65% • Retail = 86% • Industrial = 81% 4
Slide 5: Portfolio: Reversions – Renewals (Gross Rentals)
November 2012 PORTFOLIO: REVERSIONS – RENEWALS (GROSS RENTALS) Sector Area Avg expiry rental Avg renewed rental Increase/(decrease) Office 30 425 99.12 94.10 (5.1%) Retail 20 150 99.02 100.30 +1.3% Industrial 40 082 44.29 45.02 +1.7% Total 90 657 74.41 73.78 (0.9%) • Office 10/27 buildings upwards:
Slide 6: Portfolio: Reversions – New Leases (Gross Rentals)
November 2012 PORTFOLIO: REVERSIONS – NEW LEASES (GROSS RENTALS) Sector Area Avg vacated rental Avg new lease rental Increase/(decrease) Office 11 982 93.84 88.96 (5.2%) Retail 5 639 139.81 134.64 (3.7%) Industrial 17 820 32.13 31.20 (2.9%) Total 35 441 69.43 67.34 (3.0%) • Office 5/20 buildings upw
Slide 7: Portfolio: Reversions – New Leases + Renewals (Gross)
November 2012 PORTFOLIO: REVERSIONS – NEW LEASES + RENEWALS (GROSS) Avg expiry/vacated Avg new/renewed Sector Area Increase/(decrease) rental lease rental Office 42 407 97.54 92.65 (5.0%) Retail 25 789 108.02 107.81 (0.2%) Industrial 57 903 40.39 40.77 +0.9% Total 126 099 72.95 71.97 (1.4%) • Bottom
Slide 8: Major Leases Concluded
November 2012 MAJOR LEASES CONCLUDED Building Name Tenant Name GLA (m²) Begin Duration New/Renewal RTT Continental RTT Group 12 921 Nov 12 2 years Renewal 20 Anvil Rd, Isando Little Green Beverages 12 248 Oct 12 7 years New 1 Kikuyu Fluor SA 7 845 Feb 13 4 months Renewal Mitek Mitek SA 6 603 Feb 13
Slide 9: Property Management Tender
November 2012 PROPERTY MANAGEMENT TENDER Three national property managers were asked to tender for (i) the entire Emira portfolio and (ii) the regional portfolios – Broll, JHI and Eris Awarded the office and industrial portfolios to Eris and the retail (excluding Wonderpark which is undergoing exten
Slide 10: Staff Structure: Existing + Potential Additions
November 2012 STAFF STRUCTURE: EXISTING + POTENTIAL ADDITIONS CEO PA Chief Fund Financial Manager Officer Broker Asset Asset Manager New Business Development Financial Consultant Manager Manager Manager Manager x3 x4 Rural Retail Analyst/ Potential new positions Broker Liaison Assistant Valuer 10
Slide 11: Balance Sheet: Debt Swap Profile at Oct '12
November 2012 BALANCE SHEET: DEBT SWAP PROFILE AT OCT ’12 450 Rand /Millions 400 350 300 250 200 150 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 • Weighted average duration of swaps 6.6 years 11
Slide 12: Balance Sheet: Facility Expiry Dates
November 2012 BALANCE SHEET: FACILITY EXPIRY DATES 700 6th Term Loan Rand/Millions 600 7th Term Loan DMTN Notes 500 12 month CP Issue 3 month CP Issue 400 300 Access Bond Nedbank 200 100 0 Feb 2013 Nov 2013 May 2014 Jun 2014 Feb 2015 Aug-2015 Mar 2019 12
Slide 13: Wonderpark Shopping Centre Extension
November 2012 WONDERPARK SHOPPING CENTRE EXTENSION Extension and redevelopment from a regional centre of 63 000m² to a super regional centre of 90 000m² at a proposed capital spend of R513.5m expected to yield an incremental 8.4% Intend to protect and grow existing market share of the centre and ret
Slide 14: Wonderpark Shopping Centre: Main Entrance
November 2012 WONDERPARK SHOPPING CENTRE: MAIN ENTRANCE 14
Slide 15: Wonderpark Shopping Centre: Internal Mall View
November 2012 WONDERPARK SHOPPING CENTRE: INTERNAL MALL VIEW 15
Slide 16: Centre Floor Plan
November 2012 CENTRE FLOOR PLAN 16
Slide 17: Financial Outlook FY13
November 2012 FINANCIAL OUTLOOK FY13 Gross income Double digit % increase due to acquisitions and redevelopments; reducing vacancies and double-digit increase in recoveries to result in inflation linked growth in held portfolio Expenses Municipals and leasing costs to rise sharply, maintenance and r
Slide 18: Investment Case
November 2012 INVESTMENT CASE PI Price 1361 cents FY13 Forecast I-Net consensus distribution forecast per PI to June 2013 = 113.9 cents (+2.9%) and to June 2014 = 121.2 cents (+6.4%) Forward yield Forward yield to June 13 of 8.36% Using “clean” price of 1336 cents rolling 12-mth forward yield of 8.6
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