Redefine Properties Limited · JSE:RDF
Redefine Properties — FY2023 Earnings Presentation
115 slides from Redefine Properties's earnings presentation, Aug 31, 2023
Slide 1: Group annual results for the year ended 31 August 2023
1 Please follow our LinkedIn page for regular insights Group annual results for the year ended 31 August 2023
Slide 2: Our conversation
Our conversation 1 Overview 2 Investing strategically 3 Optimising capital 4 Operating efficiently 5 Engaging talent 6 Growing reputation 7 Wrap-up 8 Supplementary information 2 The Towers, Western Cape Group annual results for the year ended 31 August 2023
Slide 3: Overview
Overview 1 Overview We continue to focus on the variables within our control 3 Rosebank Towers, Gauteng Group annual results for the year ended 31 August 2023
Slide 4: Who we are
Overview Who we are A simplified, diversified and focused real estate business Asset platform valued at We actively manage our property asset platform to maintain R96.8 billion Our PRIMARY a focused and diversified portfolio, mitigating cyclical, sectoral and geographical risk which enables us to de
Slide 5: Key financial outcomes
Overview Key financial outcomes Robust operating metrics support stable financial outcomes SA REIT NAV Distributable SA: SA REIT per share income per share Occupancy Loan-to-Value 765.96 cents 51.53 cents 93.0% 41.1% FY22 | 720.08 cents FY22 | 53.71 cents FY22 | 93.3% FY22 | 40.2% Committed undrawn
Slide 6: Strategic outcomes
Overview Strategic outcomes Full year outcomes arising from focusing on the variables under our control IS OC OE ET GR Investing Optimising Operating Engaging Growing strategically capital efficiently talent reputation 56% of SA portfolio is Green Property asset platform Stable balance sheet and SA
Slide 7: Investing strategically
IS 2 Investing strategically Shifting our thinking to the evolving relevance of real estate 7 Brackengate 2, Western Cape Group annual results for the year ended 31 August 2023
Slide 8: Our property asset platform
Our property asset platform IS A quality, well-located and diversified portfolio that delivers sustainable risk-adjusted real estate returns Group South Africa Poland FY23 FY22 FY23 FY22 FY23 FY22 Property assets under management (Rbn) *96.8 *88.9 59.9 58.9 36.7 29.8 Total GLA (thousand m²) 6 084 5
Slide 9: South Africa asset portfolio
South Africa asset portfolio IS Diversification, quality and scale support the growth profile of our asset platform Geographic split by value South Africa FY23* FY22 Carrying value of properties R58.4bn R58.2bn 73% Total GLA (thousand m²) 3 681 3 865 Number of properties 241 258 5% Number of tenants
Slide 10: South Africa portfolio key outcomes
South Africa portfolio key outcomes IS In an environment of constrained revenue and rising costs operating metrics have stabilised Weighted average exit cap rate per sector (core portfolio) Active occupancy Renewal reversions 93.0% -6.7% Industrial 9,1% FY22 | 93.3% FY22 | -12.0% Specialised 9,0% Of
Slide 11: South Africa retail portfolio
South Africa retail portfolio IS Well positioned to withstand headwinds and capture emerging trends Type by value Carrying value Number of properties R24.6bn 59 5% FY22 | R24.0bn FY22 | 60 15% Super regional Regional Number of tenants GLA 44% Convenience 2 623 1 159 thousand m² FY22 | 2 660 FY22 | 1
Slide 12: South Africa retail portfolio key outcomes
South Africa retail portfolio key outcomes IS Solid operating metrics reflective of a well-balanced tenant mix Contribution to vacancy by type Vacancy by type Active occupancy Renewal reversions# 12% 93.6% -4.1% 10% Super regional 7% 41% Regional 2% FY22 | 95.6% FY22 | -8.6% 6.4% Convenience 6% Othe
Slide 13: South Africa office portfolio
South Africa office portfolio IS High quality portfolio located in strong nodes Value by grade Carrying value 5% Number of properties R21.2bn 87 5% FY22 | R22.0bn FY22 | 101 41% 54% Premium A Grade Number of tenants GLA 41% 54% Secondary 1 124 986 thousand m² FY22 | 1 076 FY22 | 1 115 thousand m² Ch
Slide 14: South Africa office portfolio key outcomes
South Africa office portfolio key outcomes IS The flight to quality is driving the turnaround in operating metrics Contribution to vacancy by grade Vacancy by node Active occupancy Renewal reversions# RDF SAPOA* Total 11.4% 15.5% 88.6% -12.1% 21% 21% Rosebank 3% 12% FY22 | 85.6% FY22 | -16.9% Vacanc
Slide 15: South Africa industrial portfolio
South Africa industrial portfolio IS A quality portfolio that is defensive Type by value Carrying value Number of properties Warehousing R12.0bn 92 Light manufacturing FY22 | R11.6bn FY22 | 94 2% 8% 16% Heavy grade industrial 12% Industrial units 8% Modern logistics Number of tenants GLA Hitech indu
Slide 16: South Africa industrial portfolio key outcomes
South Africa industrial portfolio key outcomes IS A solid contribution from a dependable portfolio Contribution to vacancy by type Vacancy by type Active occupancy Renewal reversions# 95.2% 2.1% 30% Warehousing 7% FY22 | 96.9% FY22 | -2.6% Light manufacturing 1% 53% 4.8% Industrial units 7% 2% Moder
Slide 17: Alternative income streams
Alternative income streams IS Supplementing existing revenue streams by creating new opportunities Static billboard network expansion LED network expansion Brand goes here § Due to load shedding the media industry has seen an § The current network includes 25 large format roadside/ increased demand
Slide 18: Poland asset portfolio
Poland asset portfolio IS Exposure to Polish retail and logistics sectors provides stability that is decoupled from local conditions Poland EPP European Logistics Stokado FY23 FY22 FY23 FY22 FY23 FY22 FY23 Property asset platform R36.7bn R29.8bn R30.9bn R25.1bn R5.6bn R4.7bn R0.2bn Total GLA (thousa
Slide 19: Poland EPP core portfolio
Poland EPP core portfolio IS An asset platform located in cities with the strongest consumer demand and growth potential Percentage of EPP’s core GLA by retail category Value of directly held Carrying value of property assets investment in JV’s R19.2 billion R9.6 billion Fashion & accessories 37,6%
Slide 20: Poland EPP core portfolio key outcomes
Poland EPP core portfolio key outcomes IS A robust performance during a period of unprecedented inflation is reflective of quality EPP’s retail sales trends by category Occupancy Weighted avg. rent 98.4% indexation rate 2023 2023 2023 2023 FY22 | 96.5% 6.9% vs 2019 vs 2020 vs 2021 vs 2022 FY22 | 2.1
Slide 21: Poland EPP joint ventures
Poland EPP joint ventures IS Healthy operating metrics driven by active approach to asset management FY23 Description M1 JV Community JV Galeria Mlociny Henderson JV EPP % shareholding 50.0% 50.6% 70.0% 30.0% Occupancy 97.9% 95.8% 97.5% 86.2% Weighted average renewal reversions -1.6% 2.6% 1.2% 0.0%
Slide 22: Poland ELI portfolio
Poland ELI portfolio IS Continued expansion to almost 1 million m² of GLA in a robust market Developments in Geographical spread Carrying value progress* R19.7bn 51 333m² FY22 | R12.2bn with a cost of R0.9bn 100% pre-let Tricity GLA added from Active income developments completed Białystok producing
Slide 23: Poland ELI portfolio key outcomes
Poland ELI portfolio key outcomes IS Operating metrics benefitting from a growth in market rentals Lease expiry profile by GMR Occupancy Renewal success 92.5% rate by GLA 64% FY22 | 93.5% 89.8% FY22 | 66.2% 18% BREEAM Renewal reversion* Weighted avg. unexpired 7% 6% 5% in-use ratings 6.0% lease term
Slide 24: Poland Self-storage
Poland Self-storage IS An opportunity to become a meaningful player in a developing sector Fedessa report 2023 Carrying value Number of properties R183.9m 14 Active income Number of tenants / producing NLA (occupancy) 19 316m² 2 130 (75.8%) Acquisition of Top Box Six developments added NLA of 4 451m
Slide 25: Shifting our emphasis to evolving market dynamics
Shifting our emphasis to evolving market dynamics IS Creating smart, sustainable and relevant spaces FY24 focus areas § Preserve value through organic growth and asset optimisation § Reduce reliance on municipally supplied utilities through innovative solutions and resource- efficient green initiati
Slide 26: Optimising capital
OC 3 Optimising capital Strong balance sheet supports sustainable value creation 26 Galeria Twierdza, Zamość, Poland Group annual results for the year ended 31 August 2023
Slide 27: Funding key outcomes
Funding key outcomes OC Maintained balance sheet strength and healthy liquidity headroom Sources of cash flow of R6.0bn FY23 FY22 Cashflow from operations 3 569 SA REIT LTV 41.1% 40.2% International disposals 1 159 Interest cover ratio 2.4x 2.8x Rm Local disposals 651 Access to committed undrawn fac
Slide 28: SA REIT loan-to-value ratio
SA REIT loan-to-value ratio OC LTV marginally outside medium-term target range due to Rand weakness 2.9% 41.1% 40.2% 0.8% 0.4% 0.4% 0.3% 0.3% 0.1% -3.2% -0.5% -0.4% -0.2% FY22 FY22 Operating Operating EPP EPP disposals SA disposals SA Valuations Valuations Vendor loans Vendor loans SA acquisitions S
Slide 29: Funding profile
Funding profile OC Low-risk debt maturity profile enhances optionality § Completed refinancing of all FY23 maturities and proactively refinancing FY24 maturities being 14% of group debt § Available liquidity of R5.5 billion provides sufficient flexibility to absorb unforeseen volatility § Average fu
Slide 30: Interest rate hedging
Interest rate hedging OC Shortening hedging tenors to create flexibility in an elevated interest rate environment § Maintained >75% of group debt hedged Implied and forecast repo rate 2023 2024 2025 § High inflation coupled with rapidly rising interest rates is impacting funding costs Market consens
Slide 31: Diversification of funding sources
Diversification of funding sources OC Well diversified funding sources lowers concentration risk Sources of debt FY23 Sources of debt FY22 Standard Bank 15% Standard Bank 16% Nedbank 11% RMB 13% 24% RMB 11% Nedbank 12% Listed DCM 9% Listed DCM 9% FY23 South Africa ABSA 7% Santander Bank 6% EPP core
Slide 32: Shifting our emphasis to evolving market dynamics
Shifting our emphasis to evolving market dynamics OC Efficiently sourcing capital in a constrained environment FY24 focus areas § Proactive renewal of maturing debt facilities and extending the debt maturity profile § Vigilant management of interest rate risk through the cycles § Diversifying fundin
Slide 33: Operating efficiently
OE 4 Operating efficiently Focusing on the long-term sustainability of operating margins 33 90 Rivonia Road, Sandton, Gauteng Group annual results for the year ended 31 August 2023
Slide 34: Key outcomes for 2023
Key outcomes for 2023 OE Strong cash generation underpins the quality of our asset platform Group distributable income analysis Active SA net property EPP core net property income margin income margin 24 9 81.6% 88.7% 22 FY22 | 82.3% FY22 | 88.5% 3 603 3 471 2 855 Solar PV SA core digital ratio EPP
Slide 35: Distributable income bridge
OE Group annual results for the year ended 31 August 2023 3 480 FY23 (369) Net local funding costs (133) NOI disposed properties (71) Capitalised interest Headwinds (712m) (50) Lease cancellation fees Antecedent earnings adjustment (DRIP (41) Positive operational performance has absorbed the impact
Slide 36: NAV per share
NAV per share OE NAV grew by 6.4% to R7.66 per share largely driven by foreign exchange movements EPP 3.6 EUR Vendor loans ZAR 0.8 ELI 3.1 EUR Listed shares ZAR (0.7) EUR (11.6) ZAR (0.4) Journal 0.1 AUD EUR 64.0 Properties ZAR (1.1) USD (0.4) EUR (13.0) 44.1 6.8 1.2 64.0 766.0 720.1 (1.0) (12.0) (1
Slide 37: Dividend payout policy
Dividend payout policy OE 85% payout ratio supported by healthy liquidity levels Distributable income and dividend Payout ratio considerations consistently applied to 70 distributable income § Earnings supported by cash 60.1 60 53.0 53.7 § Capex requirements to maintain our properties 51.5 50 § Mana
Slide 38: Shifting our emphasis to evolving market dynamics
Shifting our emphasis to evolving market dynamics OE Delivering on our digital journey’s key milestones to support long-term margin improvement FY24 focus areas § Preserve operating profit margin through a focus on efficiency, disciplined cost control and improve energy mix with renewables § Intensi
Slide 39: Engaging talent
ET 5 Engaging talent Harnessing the power of diversity of thought 39 Alice Lane, Sandton Group annual results for the year ended 31 August 2023
Slide 40: Redefine's talent engagement key outcomes
Redefine’s talent engagement key outcomes ET Embracing diversity to enable the effective execution of our strategic priorities Employee retention rate Nurturing a team of future-fit real estate professionals SA: 86.7% (FY22: 89.1%) | Poland: 88.1% (FY22: 90.4%) Refining our talent and succession pla
Slide 41: Shifting our emphasis to evolving market dynamics
Shifting our emphasis to evolving market dynamics ET Building a collective of people who create and manage spaces for positive impact FY24 focus areas § Implement strategies to attract, retain and develop a pool of key talent § Promote employee wellness programme and encourage work-life balance § Fo
Slide 42: Growing reputation
GR 6 Growing reputation Creating an environment that meets the needs of the present and secures our future 42 Mall of the South, Gauteng Group annual results for the year ended 31 August 2023
Slide 43: Living our vision through ESG impacts
Living our vision through ESG impacts GR A strong ESG proposition underpins sustained value creation for all stakeholders ENVIRONMENTAL GOVERNANCE EPC CERTIFICATES AFRICA NET =(52 carbon South Africa 90 Rivonia Road Level 2: Building & Occupant Emissions (measured) - Including 56.3% Offset purchased
Slide 44: EPP has been fully integrated into Redefine
EPP has been fully integrated into Redefine GR Well-advanced to deal with EU taxonomy and debt funders’ energy efficiency requirements ENVIRONMENTAL GOVERNANCE GOLD: Shopping Centre SILVER: Shopping Centre SILVER: Mobile Application EPCs for 35 out of 37 Marketing Manager of the of the Year: Best B
Slide 45: Socioeconomic development in action
Socioeconomic development in action GR Living our purpose to create and manage spaces in a way that transforms lives § Evolution of CSI socioeconomic development strategy forms part of our overall impact framework § Strategic alignment to primary and secondary UN SDG’s Strategy § Impact driven appro
Slide 46: Shifting our emphasis to evolving market dynamics
Shifting our emphasis to evolving market dynamics GR Being who we say we are to all our stakeholders FY24 focus areas § Implement multipronged and sustainable energy, water and waste solutions to reduce reliance on grid-supplied energy, municipal water and waste services § Create sustainable socioec
Slide 47: Wrap-up
Wrap-up 7 Wrap-up Navigating the effectiveness of the structured energy transition, the expected shift of the interest rate cycle and responding to evolving stakeholder needs 47 Wzorcownia, Włocławek Group annual results for the year ended 31 August 2023
Slide 48: Redefine has faced down a number of market shifting dynamics
Wrap-up Redefine has faced down a number of market shifting dynamics Although dynamics evolve they do dissipate as we respond and adapt to them Market Overlapping Elevated An energy Higher Constrained shifting aftershocks of the inflation crisis funding costs liquidity dynamics pandemic Impact Opera
Slide 49: Outlook
Wrap-up Outlook We will build on the positive momentum seen in the stabilised operating metrics Variables on our radar FY24 distributable income per share 48 cents to 52 cents Interest rates remaining elevated above long-term EPP and ELI indexation levels linked to EU Persistent sluggish economic gr
Slide 50: The real estate investment cycle clock
Wrap-up The real estate investment cycle clock We are at 5 o’clock and the clock will strike 6 o’clock for Redefine during 2024 as interest rates begin to ease Foundations start to crumble ‘Overbought’ 12 ‘This time it’s different’ 11 1 Rising interest rates Everyone is on the property Investment ba
Slide 51: Redefine's investment proposition is compelling
Wrap-up Redefine’s investment proposition is compelling We do what we say we will do Simplified, high-quality asset platform which is diversified Our approach is driven from a place of purpose Sustainable funding model with solid credit metrics Putting people and ESG at the heart of Engaged, passion
Slide 52: Thank you
Thank you Please follow our LinkedIn page Group interim results for the six months ended 28 February 2023 52 52
Slide 53: Disclaimer
Disclaimer This presentation may include forward-looking statements which are not based on historical information, but rather premised on certain assumptions, risks, estimates and/or uncertainties (“risks and uncertainties”), which are taken into consideration as at date of this presentation. All fi
Slide 54: Supplementary information
SI 8 Supplementary information Supplementary information 54 90 Grayston Drive, Gauteng Group annual results for the year ended 31 August 2023
Slide 55: Contents
Contents SI PAGE PAGE GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME SOUTH AFRICA – OPERATING ACTIVITIES | continued Redefine’s diversified property asset platform 56 South Africa | Top10 industrial properties and tenants 90 Reconciliation of property related assets 57 South Africa | Specialised pro
Slide 56: Redefine's diversified property asset platform
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Redefine’s diversified property asset platform SI Portfolio valued at R96.8 billion Local property portfolio International property portfolio Property portfolio 100.0% R59.4bn European Logistics platform 48.5% R5.6bn Retail 41.4% R24.6bn Office 37.2% R2
Slide 57: Reconciliation of property related assets
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Reconciliation of property related assets SI RDF Head Europe Lango & Property assets (R’m) Retail Office Industrial Specialised office and ELI EPP* Stokado Journal Total FY22 property asset platform 24 114 21 993 11 625 547 691 3 799 25 954 - 207 88 930
Slide 58: Funds from operations
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Funds from operations SI SA REIT funds from operations (SA REIT FFO) per share FY23 FY22 R’m R’m Profit per IFRS Statement of Comprehensive Income (SOCI) attributable to the parent 1 447 8 691 Adjusted for:- Accounting/specific adjustments:- 383 (2 820)
Slide 59: Funds from operations | continued
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Funds from operations | continued SI FY23 FY22 R’m R’m SA REIT FFO: 3 629 3 662 Number of shares outstanding at end of period (net of treasury shares) (millions) 6 752 6 752 SA REIT FFO per share (cents) 53.74 54.23 Company-specific adjustments (149) (3
Slide 60: South Africa distributable income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa distributable income analysis SI Total SA Total SA R’m Retail Office Industrial Specialised Head office FY23 FY22 Property portfolio revenue 3 425 3 050 1 367 74 - 7 916 7 743 Operating costs (1 609) (1 151) (447) (26) - (3 233) (3 055) Exp
Slide 61: International distributable income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME International distributable income analysis SI Europe PLN Africa Australia Total Total RDF EUR Self- USD international international R’m EPP Europe funding storage funding Lango Journal FY23 FY22 Contractual rental income 2 015 - - 3 - - 1 2 019 810 Inv
Slide 62: South Africa portfolio income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa portfolio income analysis SI FY23 FY22 Change Active portfolio NOI contribution R’m R’m % Net operating income from investment properties 4 727 4 789 -1.3% 1% 18% Net operating income from acquired/development properties (94) (26) 261.5% Ne
Slide 63: South Africa active portfolio expenditure analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa active portfolio expenditure analysis SI R’m Change % FY22 976 Higher net municipal expenses in line with various council increases and offset by favourable council revaluations (1) -0.5% Net electricity cost lower due to favourable council
Slide 64: Group arrears and bad debts
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Group arrears and bad debts SI R’m FY23 FY22 FY21 Gross arrears Trade receivables 373.3 353.2 436.3 Municipal recoveries 312.8 300.6 291.9 Less: Expected credit loss (ECL) provision (209.6) (243.7) (327.7) Net arrears 476.5 410.1 400.5 B/S I/S charge B/
Slide 65: Income hedging position by currency and interest received
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Income hedging position by currency and interest received SI Income hedging position by currency FY24 FY25 FY26 EUR amount (€m) 46.5 19.5 17.5 FEC rate (R: €1) 23.3 24.2 24.4 FY23 FY22 Interest Received R’m R’m Bank interest income 92.4 61.9 Interest-cr
Slide 66: Group funding snapshot
FUNDING Group funding snapshot SI FY23 FY22 SA REIT BPR – LTV (min required <50%) 41.1% 40.2% Average term of debt 3.6 years 3.9 years % of debt secured 77.9% 83.9% % of asset secured* 69.2% 71.9% Weighted average cost of ZAR debt 9.4% 8.7% Weighted average cost of FX debt 4.6% 2.6% Weighted average
Slide 67: JV funding snapshot
FUNDING JV funding snapshot SI Community Galeria Henderson M1 JV ELI Description (FY23) JV Mlociny JV Weighted average length of debt (years) 3.7 3.5 1.7 0.8 4.4 Weighted average cost of debt (%)* 4.7% 5.7% 4.0% 1.7% 4.5% Weighted average debt amortization per annum (%) 0.7% 2.5% 3.9% 2.0% 0.7% LTV
Slide 68: Loan-to-value calculation
FUNDING Loan-to-value calculation SI FY23 FY22 SA REIT BPR LTV ratio R'm R'm Value 96 760 88 931 Total assets 99 448 92 406 Less: Cash (761) (1 765) Less: Derivative financial assets (628) (609) Less: Trade and other receivables (including other monetary assets) (1 299) (1 101) Loan 39 757 35 786 In
Slide 69: Currency analysis of property assets and borrowings
FUNDING Currency analysis of property assets and borrowings SI FY23 FY22 Weighted Weighted Currency (R’m) Property assets Debt NAV hedge avg cost Property assets Debt NAV hedge avg cost Net ZAR* 59 853 20 941 35.0% 9.4% 58 931 19 086 32.4% 8.7% EUR* 36 532 18 618 51.0% 4.5% 29 800 16 500 55.6% 2.6%
Slide 70: Analysis of secured and unsecured debt to property assets
FUNDING Analysis of secured and unsecured debt to property assets SI Assets Debt LTV R’m R’m Secured 66 978 31 101 46.4% Local 44 707 18 874 42.2% Offshore 22 271 12 227 54.9% Unsecured 29 782 8 099 27.2% Local** 15 145 8 195 54.1% Offshore 14 637 (96) -0.7% Group LTV without CCS 96 760 39 200 40.5%
Slide 71: Debt funding profile
FUNDING Debt funding profile SI Debt and interest rate swap maturity profile Equity headroom for the unsecured lender 10,1 … 14,1 65,9 68,1 65.6** 56,6 57,3 51,5 6,6 6,4 6,9 5.5 4.3 4,0 3,8 R’bn R’bn 1,9 1,2 - - 2024 2025 2026 2027 2028 2029 >2030 FY18 FY19 FY20 FY21 FY22 FY23 Debt (including MTM of
Slide 72: JV Debt maturity profile
FUNDING JV Debt maturity profile SI M1 JV Community JV Galeria Mlociny Henderson JV ELI R’m % R’m % R’m % R’m % R’m % FY24 57.3 0.8% 881.3 12.1% 150.8 4.4% 3 120.1 100.0% - - FY25 57.3 0.8% 176.3 2.4% 3 299.6 95.6% - - 708.4 9.5% FY26 2 202.1 29.3% 876.3 12.1% - - - - - - FY27 920.6 12.2% 3 183.7 43
Slide 73: South Africa | Disposal of non-core property assets
INVESTING ACTIVITIES South Africa | Disposal of non-core property assets SI Date Amount Property Province of transfer GLA (m²) (R’m) Retail 1 306 15.5 ABSA Centurion Gauteng Sep-22 1 306 15.5 Office 18 449 139.6 Wickham House Gauteng Sep-22 1 769 24.0 Schoeman Street – 18% share Gauteng Dec-22 344 3
Slide 74: South Africa | Ownership restructure of Government tenanted properties
INVESTING ACTIVITIES South Africa | Ownership restructure of Government tenanted properties SI Amount FV at FY23 Talis portfolio Province Effective date GLA (m²) (R'm) (R'm) Office 127 100 983.0 972.2 240 & 260 Justice Mohamed Street Gauteng Aug-23 13 087 120.4 158.2 300 Middel Street Gauteng Aug-23
Slide 75: South Africa | Non-current assets held for sale
INVESTING ACTIVITIES South Africa | Non-current assets held for sale SI Amount Property Province (R’m) Land* 45.2 Atlantic Hills – 55% share Swartland Erf 54 Western Cape 33.6 Atlantic Hills – 55% share Vulcan Steel Erf 49 Western Cape 11.6 Total 45.2 * Land sales do not have GLA 75 Group annual res
Slide 76: South Africa | Acquisitions
INVESTING ACTIVITIES South Africa | Acquisitions SI Date Amount Yield Property Province of transfer GLA (m²) (R’m) (%) Retail 8 320 79.5 Cradlestone Mall – 10% share Gauteng Jun-23 8 320 79.5 9.6% Office 18 327 403.6 Hertford Office Park – 33.3% share Gauteng Sep-22 17 587 395.0 7.9% GM Hatfield – 2
Slide 77: South Africa | New developments
INVESTING ACTIVITIES South Africa | New developments SI Total value of Development Projected Initial work costs incurred Still to development yield completed** during 2023*** spend Completion Property Province GLA (m²) Sector cost* (R'm) (%) (R’m) (R’m) (R’m) date New completed 38 144 388.3 380.1 33
Slide 78: South Africa | Refurbishments completed
INVESTING ACTIVITIES South Africa | Refurbishments completed SI Total value of Projected work Refurbishment redevelopment completed costs 2023 Completion Property Province cost (R’m)* (R’m)** (R’m)*** date Retail 57.8 54.7 46.8 Oakfields Shopping Centre Gauteng 9.5 9.5 5.3 Nov-22 Gauteng Centurion M
Slide 79: South Africa | Refurbishments in progress
INVESTING ACTIVITIES South Africa | Refurbishments in progress SI Total value of Projected work Refurbishment redevelopment completed costs 2023*** Completion Property Province cost (R’m)* (R’m)** (R’m) date Still to spend Retail 97.7 9.3 9.3 88.4 Goldenwalk – Phase 1 – Tenant reconfiguration Gauten
Slide 80: South Africa | Infrastructure projects
INVESTING ACTIVITIES South Africa | Infrastructure projects SI Total value Completion / Project of work expected infrastructure completed Infrastructure completion Completed* Province costs (R’m)* (R’m)** costs (R'm)*** date Industrial 138.5 121.9 86.6 S & J Industrial 90% share – Infrastructure Ext
Slide 81: South Africa | Solar PV projects in progress
INVESTING ACTIVITIES South Africa | Solar PV projects in progress SI Plant Size Capex Initial return Building (kWp) (R'm) (%) Retail 8 012 107 18.4% Benmore Shopping Centre 677 9 18.7% Cradlestone 50% share – expansion 1 044 16 20.7% East Rand Mall 50% share – expansion 1 726 19 18.9% Goldfields Mal
Slide 82: South Africa | Solar PV projects installed
INVESTING ACTIVITIES South Africa | Solar PV projects installed SI Plant Size Property (kWp) Retail 28 024 Centurion Lifestyle Centre 2 925 Centurion Mall 1 339 Chris Hani Crossing 50% share 655 Cradlestone Mall 50% share 511 East Rand Mall 50% share 462 Gateway Corner 750 Golden Walk 1 986 Goldfiel
Slide 83: South Africa | Solar PV projects installed | continued
INVESTING ACTIVITIES South Africa | Solar PV projects installed | continued SI Property Plant Size (kWp) Office 3 868 90 Grayston 53 90 Rivonia 108 AMR Office Park 247 Ballyoaks Office Park 442 Black River Park 962 Clearwater Office Park 547 Loftus Park 140 Observatory Business Park 599 Oxford House
Slide 84: South Africa | Portfolio overview
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Portfolio overview SI FY23 FY22 Description Retail Office Industrial Specialised Total* Total Number of properties 59 87 92 3 241 258 Number of tenants 2 623 1124 273 1 4 021 4 060 Total GLA (m²) (thousands) 1 159 986 1 523 13 3 681 3 865 Total GMR
Slide 85: South Africa | Sectoral and geographical split
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Sectoral and geographical split SI Valuation GLA GMR Valuation GLA GMR Sector (R’m) No. of properties (m²) (R’000) Province (R’m) No. of properties (m²) (R’000) l Retail 24 642 59 1 158 472 207 213 l Gauteng 42 490 167 2 580 648 344 253 l Office 21
Slide 86: South Africa | Sector type analysis
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Sector type analysis SI Valuation GLA GMR Type by value Type by GLA Type by GMR Retail (R’m) (m²) (R’000) l Super regional 3 628 124 518 28 810 l Regional 5% 15% 11% 11% 6% 14% 8 830 406 862 74 089 l Convenience 10 823 497 164 90 755 l Other 1 361 1
Slide 87: South Africa | Top 10 properties and tenants of total portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Top 10 properties and tenants of total portfolio SI Value GMR Property Region (R’m) GLA (m²) Tenant GLA (m²) (R’000) Centurion Mall Gauteng 3 569 112 883 Macsteel 542 768 28 164 Alice Lane Gauteng 3 247 70 305 Shoprite 116 537 14 833 Golden Walk Gau
Slide 88: South Africa | Top 10 retail properties and tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Top 10 retail properties and tenants SI Value GMR Property Region (R’m) GLA (m²) Tenant GLA (m²) (R’000) Centurion Mall Gauteng 3 569 112 883 Shoprite 82 993 12 318 Golden Walk Gauteng 1 569 44 209 Pick n Pay 79 459 10 235 Kenilworth Centre Western
Slide 89: South Africa | Top 10 office properties and tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Top 10 office properties and tenants SI Value GMR Property Region (R’m) GLA (m²) Tenant GLA (m²) (R’000) Alice Lane Gauteng 3 247 70 305 Webber Wentzel 34 084 7 080 115 West Street Gauteng 1 483 36 546 Government 31 296 5 388 90 Rivonia Road Gauteng
Slide 90: South Africa | Top 10 industrial properties and tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Top 10 industrial properties and tenants SI Value GMR Property Region (R’m) GLA (m²) Tenant GLA (m²) (R’000) 233 Barbara Road Gauteng 902 102 631 Macsteel 542 768 28 164 Hirt & Carter Cornubia KwaZulu-Natal 706 47 718 Massmart 52 601 4 054 Macsteel
Slide 91: South Africa | Specialised properties and tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Specialised properties and tenants SI Value GMR Property Region (R'm) GLA m² Tenant GLA m² (R’000) Bedford Gardens Hospital Gauteng 385 12 817 Bedford Gardens Hospital 12 817 3 950 Park Central Gauteng 131 - Loftus Park Hotel - 25% share Gauteng 47
Slide 92: South Africa | Portfolio overview – Talis
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Portfolio overview – Talis SI FY23 Description Office Industrial Total Number of properties 10 1 11 Number of tenants 62 5 67 Total GLA (m²) (thousands) 127 27 154 Total GMR (R'm) 15 2 17 Vacancy (%) total 26.3% 26.1% 26.2% Asset value (R’bn) 1.0 0.
Slide 93: South Africa | Talis properties and top 10 tenants
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Talis properties and top 10 tenants SI Value GLA GMR Property Region (R'm) GLA m² Tenant m² (R’000) 61 Jorrisen Street Gauteng 205 18 181 Government 102 156 15 362 240 & 260 Justice Mohamed St Gauteng 158 13 087 Clicks Group 926 83 12 Piet Rautenbac
Slide 94: South Africa | Undeveloped land
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Undeveloped land SI Value Property# Province (R'm) S & J Industrial Estate - 90% share Gauteng 693 Galleria -90% share Gauteng 141 Atlantic Hills - 55% share Western Cape 127 Brackengate 2 Mainland Western Cape 87 Erf 179205 Western Cape 35 4 Keyes
Slide 95: South Africa | Retail portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Retail portfolio SI Turnover comparison (Rm) 35 000 30 000 106% 25 000 20 000 15 000 107% 10 000 104% 5 000 109% 121% 98% 112% 106% 86% 99% 103% 104% 102% 0 Total Essential Apparel Hard-Hit Homeware & Hardware Fast food Department Furniture Electron
Slide 96: South Africa | Retail portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Retail portfolio SI Total cost of occupation 14% 13,1% 13,0% 12% 11,3% 10,9% 10,5% 10,1% 10,2% 10,1% 10% 9,4% 9,4% 8,7% 8,8% 8% 6,6% 6,0% 6% 4% 2% 0% Total Super Regional Regional Shopping Small Regional Community Shopping Neighbourhood Other Shoppi
Slide 97: South Africa | Retail portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Retail portfolio SI Market / Trends Forward looking priorities § Recovery of retail spend decelerated with SAPOA showing 8.6% growth in § Tenant retention, WAULT and vacancy reduction continues to be a key annualised trading density at Q2 2023 which
Slide 98: South Africa | Office portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Office portfolio SI Market / Trends Forward looking priorities § Demand in Cape Town is very strong resulting in an undersupply of good § Asking rentals have been raised (Sept 22 to present) in buildings that quality office space in most nodes. Rent
Slide 99: South Africa | Industrial portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Industrial portfolio SI Market / Trends Forward looking priorities § There is a perceived shortage of new industrial space as property § Finalising Brackengate2 wheeling project with City of Cape Town development in the City of Cape Town metro is ac
Slide 100: Overview of Poland joint ventures
POLAND – OPERATING ACTIVITIES Overview of Poland joint ventures SI M1 JV EPP Community JV Galeria Młociny JV Henderson JV ELI Effective interest 50.0% 50.6% 70.0% 30.0% 48.5% Carrying value of investment in JV R4.3bn R2.9bn R2.9bn R0.5bn R4.7bn Total assets R15.4bn R14.3bn R8.3bn R5.2bn R21.5bn Tota
Slide 101: EPP portfolio overview (including JVs)
POLAND – EPP OPERATING ACTIVITIES EPP portfolio overview (including JVs) SI EPP Core EPP JVS Community Galeria Henderson Description M1 JV JV Młociny JV JV EPP Total FY22 % EPP share in JV 100% 50.0% 50.6% 70.0% 30.0% Number of properties 6 11 15 1 3 36 36 Number of tenants 699 590 708 204 47 2 248
Slide 102: Poland EPP joint ventures
POLAND – EPP OPERATING ACTIVITIES Poland EPP joint ventures SI § Healthy performance of portfolio with 8.0% rent to sales ratio M1 JV 50.0% § Takeover process from Metro AG (master lease expires in April 2024) well advanced § Metro AG claims dismissed in a final and binding ruling by the Arbitral Tr
Slide 103: Poland retail market
POLAND – EPP OPERATING ACTIVITIES Poland retail market SI National indicators have suggested an end to a decline in retail sales Stock with GLA § Improving consumer sentiment and a recovery in the willingness to make important purchases suggest a revival in consumption 12.8 million m² Limited number
Slide 104: EPP core top 10 properties and tenants
POLAND – EPP OPERATING ACTIVITIES EPP core top 10 properties and tenants of total portfolio SI Value Value GLA GMR GMR Property (EUR'm) (R'm) GLA m² Tenant m² % (EUR'm) (R'm) % Galaxy 274 5 596 56 442 Auchan 46 834 Pasaż Grunwaldzki 227 4 644 48 102 LPP Group 13 526 Galeria Echo Kielce 221 4 511 71
Slide 105: EPP M1 JV top 10 properties and tenants
POLAND – EPP OPERATING ACTIVITIES EPP M1 JV top 10 properties and tenants of total portfolio (50% shareholding) SI Value Value GLA GMR GMR Property (EUR'm) (R'm) GLA m² Tenant m² % (EUR'm) (R'm) % M1 Kraków 127 2 597 49 767 Auchan 134 932 M1 Czeladź 118 2 401 53 074 OBI 90 466 M1 Marki 117 2 392 48
Slide 106: EPP Community JV top 10 properties and tenants
POLAND – EPP OPERATING ACTIVITIES EPP Community JV top 10 properties and tenants of total portfolio (50.6% shareholding) SI Value Value GLA GMR GMR Property (EUR'm) (R'm) GLA m² Tenant m² % (EUR'm) (R'm) % Galeria Amber 91 1 849 33 084 LPP 28 338 Park Rozwoju 71 1 448 34 540 CCC 16 396 Zakopianka Ce
Slide 107: EPP Henderson JV top 10 properties and tenants
POLAND – EPP OPERATING ACTIVITIES EPP Henderson JV top 10 properties and tenants of total portfolio (30% shareholding) SI Value Value GLA GMR GMR Property (EUR'm) (R'm) GLA m² Tenant m² % (EUR'm) (R'm) % O3 Business Park 133 2 725 56 840 HCL 10 396 Malta Office Park 58 1 177 28 330 Philips 9 033 Sym
Slide 108: Galeria Mlociny JV top 10 properties and tenants
POLAND – EPP OPERATING ACTIVITIES Galeria Mlociny JV top 10 properties and tenants of total portfolio (70% shareholding) SI Value Value GLA GMR GMR Property (EUR'm) (R'm) GLA m² Tenant m² % (EUR'm) (R'm) % Młociny 386 7 882 80 755 Inter Cars 6 075 Primark 5 839 Multikino 3 952 H&M 3 042 ZARA 3 030 C
Slide 109: EPP BREEAM certifications
POLAND – EPP OPERATING ACTIVITIES EPP BREEAM certifications SI BREEAM in use part 1 In use part 1: In use Part 2: Asset Asset performance* Building management** EPP Core Galaxy No Certification No Certification Galeria Echo Kielce Very Good Very Good 25% 22% King Cross Marcelin Very Good Very Good O
Slide 110: Poland logistics market
POLAND – ELI OPERATING ACTIVITIES Poland logistics market SI Market outlook positive CBRE Polish logistics market report Q2 2023 § Nearshoring, BTS projects and infrastructure spend will provide opportunities Developers remain cautious § Slowdown due to increased finance costs and higher pre-letting
Slide 111: ELI JV top 10 properties and tenants
POLAND – ELI OPERATING ACTIVITIES ELI JV top 10 properties and tenants of total portfolio SI Value Value GLA GMR GMR Property (EUR'm) (R'm) GLA m² Tenant m² (EUR’000) (R’000) % Lublin II 91 1 864 87 598 Weber ^ 78 734 Warsaw Airport VI 76 1 559 72 260 LPP 64 224 Bielsko-Biala 75 1 526 71 466 Polish
Slide 112: ELI net operating income
POLAND – ELI OPERATING ACTIVITIES ELI net operating income SI FY23 FY22 FY23 FY22 EUR'm EUR'm R'm R'm Active assets * 13.1 11.9 252.1 203.4 Other assets ^ 15.3 7.2 292.9 122.9 Joint ventures 3.0 2.2 57.9 38.0 Disposed assets - 2.4 - 41.3 Total NOI 31.4 23.7 602.9 405.6 NOI margin on active assets 96
Slide 113: ELI developments completed
POLAND – ELI OPERATING ACTIVITIES ELI developments completed SI GLA Development cost Development Fair value Fair value Letting Change Property (m²) (EUR'm) cost (R'm) (EUR'm) (R'm) (%) (%) Warsaw West (Błonie) phase I 31 276 24.4 498.0 24.7 505.1 100.0% 1.4% Lublin II (remaining phases) 45 216 29.5
Slide 114: ELI land holdings
POLAND – ELI OPERATING ACTIVITIES ELI land holdings SI Total GLA Property (m²) Bielsko-Biala phase III 24 255 Tychy II (A+B) 35 356 Ruda Slaska phase III* 16 652 Tychy (expansion) 4 017 Warsaw Airport Kinetyczna 55 787 Warsaw Targówek ^ 22 783 Warsaw Błonie (West) phase II 17 032 Krakow Nowa Huta ph
Slide 115: ELI BREEAM certifications
POLAND – ELI OPERATING ACTIVITIES ELI BREEAM certifications SI Asset New buildings New buildings Bielsko-Biala phase I Very good Bielsko-Biala phase II Good Central Silesia III phase I (Ruda Slaska) Good Central Silesia III phase II (Ruda Slaska) Very good Czeladz phase I Very good Czeladz phase II