Hyprop Investments Limited · JSE:HYP
Hyprop Investments — H1 2011 Earnings Presentation
17 slides from Hyprop Investments's earnings presentation, June 2011
Slide 1: Unaudited interim results 30 June 2011
Unaudited interim results 30 June 2011 Agenda Overview Financial results Operational performance Attfund Retail transaction Developments Prospects 2 1
Slide 2: Overview and key features
Overview Premium quality shopping centres - 79% of portfolio Consistently high occupancy levels Diverse tenant base with strong national profile Majority of assets located in economically active areas - Gauteng and W. Cape Experienced internal management team Focused strategy of investing in large s
Slide 3: Distributions
Distributions Cents per unit 500 Half year Full year 400 9% % growth 6% 14% 357 300 20% 328 308 18% 270 200 225 7% 8% 4% 15% 18% 174 181 21% 161 150 100 130 110 0 2006 2007 2008 2009 2010 2011 5 Financial results 6 3
Slide 4: Income statement extracts; net income shopping centres
Income statement ‒ extracts 30 June 2011 30 June 2010 Revenue 556 525 6% Investment property 498 464 7% Sycom 58 61 Property expenses (186) (166) Net property income 370 359 3% Other operating expenses (14) (18) Operating income 356 341 4% Net interest (64) (60) Net operating income 292 281 4% Non-c
Slide 5: Revenue spread; balance sheet extracts
Revenue spread Office rental Operating cost recovery 4% 13% Customer parking 5% 1% Monthly parking Retail rental 54% 20% Municipal cost recovery 3% Storerooms and other 9 Balance sheet ‒ extracts 30 June 2011 31 Dec 2010 Investment property 9 818 9 503 3% Sycom 1 538 1 529 1% VPIF 210 210 Other asse
Slide 6: Valuations; Borrowings
Valuations Value per Value change Hyprop share square metre from Dec 2010 Property Size (m²) (Rm) (R/m²) % Canal Walk (80%) 150 394 4 800 39 895 5 The Glen (75.15%) 74 583 1 547 27 593 1 Hyde Park Corner 36 894 1 316 35 670 3 The Mall of Rosebank 37 009 948 25 615 3 Stoneridge (90%) 50 241 437 9 653
Slide 7: Operational performance: Vacancies
Operational performance 13 Vacancies Cradock Heights (177m²) 1% Canal Walk (1 430m²) The Mall Offices (260m²) 2% 2% The Glen (251m²) Southcoast Mall (2 335m²) 9% Hyde Park Corner (731m²) 15% 4% 13% The Mall of Rosebank (2 069m²) 54% Stoneridge (8 642m²) Total vacancies 3.9% (Dec 10: 3.9%) Retail vac
Slide 8: New leases; Trading performance
New leases Retail Offices Total New Lettings Area (m²) 7 489 3 524 11 013 Rental growth (%) 1.2 12.5 3.1 Escalation (%) 9.1 9.0 9.1 Renewals Area (m²) 16 592 7 348 23 940 Rental growth (%) 4.3 2.3 4.0 Escalation (%) 8.8 8.7 8.8 15 Trading performance Density (R/m²) Footcount (million) Spend per head
Slide 9: Investment in VPIF; Attfund Retail acquisition
Investment in VPIF Listed on JSE 11 August 2011 50% of Hyprop's units placed at R7.05 pu Realised R100 million No material effect on NAV or distributions Hyprop holds 14.2 million units (11.5% of total) Strategy is to exit 17 Attfund Retail acquisition 9
Slide 10: Attfund Retail transaction terms; Hyprop post Attfund Retail
Attfund Retail transaction terms R9 bn acquisition - effective 1 Sep 2011 Cash settlement and 92 million Hyprop units on effective date Placement or buy-back of 30 million Hyprop units within 45 - 60 days Sale of Centurion Mall for R751m effective 1 Sep 2011 2 months special distribution - payable i
Slide 11: Property portfolio post Attfund Retail
Property portfolio post Attfund Retail Super regional mall Canal Walk (80%) Large regional malls Cape Gate Precinct Clearwater Mall The Glen (75.15%) Woodlands Boulevard Regional malls Hyde Park Corner The Mall of Rosebank H Y D E P A R K C O R N E R Southcoast Mall (50%) Value/ lifestyle centres St
Slide 12: Total assets post Attfund Retail; Combined lease expiry profile
Total assets post Attfund Retail Shopping centres (R16 239m) Offices (R921m) 84% 5% 1% Other (R222m) 9% Sycom (R1 752m) 1% Acucap (R93m) VPIF (R100m) 23 Combined lease expiry profile Total Retail Offices GLA% GR % GLA% GR% GLA% GR% Vacant 4 0 4 0 11 0 Dec 2011 14 15 11 13 39 59 Dec 2012 10 12 9 12 1
Slide 13: Management; Developments
Management Integrated from 1 Sep 2011 Head Office – Johannesburg Regional Offices ‒ Johannesburg Nicole Greenstone ‒ Pretoria Yvette van der Merwe ‒ Cape Town Wayne Abbeglen ‒ Leasing at Regional Offices Centralised Head Office functions ‒ Finance Laurence Cohen (FD) ‒ HR Karin Eichhorn ‒ Developmen
Slide 14: Redevelopment of The Mall of Rosebank; Other developments
Redevelopment The Mall of Rosebank Initial design complete Increase retail from 37 000m² to 60 000m² Increased customer base from Gautrain Increase in new office developments incl Standard Bank project (75 000m² opening Apr 2013) Finalising town-planning approvals Leasing approvals with national ten
Slide 15: Prospects
Prospects 29 Looking ahead Strategy and focus Integration of Attfund Retail portfolio Disposal of non-core assets The Mall of Rosebank redevelopment Placement of Hyprop units or increase debt Moody’s rating and corporate bond programme Improved distributions Market volatility Defensive nature of por
Slide 16: Questions & answers
Questions & answers 31 Appendix 32 16
Slide 17: Top 8 properties by value
Top 8 properties by value Canal Walk Clearwater Woodlands The Glen (80% Undivided Share) Shopping Centre Boulevard (75% Undivided Share) Region Cape Town Region Johannesburg Region Pretoria Region Johannesburg Valuation (Rm) 4,800 Valuation (Rm) 2,358 Valuation (Rm) 1,558 Valuation (Rm) 1,547 Total