Octodec Investments Limited · JSE:OCT
Octodec Investments — Corporate Update (February 2024)
21 slides from Octodec Investments's corporate update, Feb 21, 2024
Slide 1: Pre-close update February 2024
PRE-CLOSE UPDATE Pre-close update February 2024 OCTODEC INVESTMENTS LIMITED 0 Pre-close update February 2024
Slide 2: Agenda
AGENDA 1 Octodec at a glance 2 Overview for the period 3 Our portfolio performance 4 Strategy update 5 Questions and answers ONE ON MUTUAL ARCADE
Slide 3: Octodec at a glance
OCTODEC AT A GLANCE FRANKS PLACE OCTODEC INVESTMENTS LIMITED 2 Pre-close update February 2024
Slide 4: Octodec at a glance: What, How, Why
OCTODEC AT A GLANCE How City Property’s inner-city know-how and experience provides us with our What competitive advantage. It constitutes our collective experience, knowledge Our property portfolio is and culture. It also includes diversified and well balanced the processes and across all property
Slide 5: Overview for the period
OVERVIEW FOR THE PERIOD HEALTHCONNECT
Slide 6: Overview for the period
OVERVIEW FOR THE PERIOD Operating environment • Local economy remains under pressure, with significant levels of unemployment and high interest rate cycle impacting consumers and lease escalations. • However, our residential portfolio, above all, remains resilient with solid demand for apartments. •
Slide 7: Our portfolio performance
OUR PORTFOLIO PERFORMANCE THE FIELDS
Slide 8: Residential portfolio overview
RESIDENTIAL PORTFOLIO OVERVIEW Vacancy % comparisons Residential vacancy trends (%) January 2024 January 2023 30 % % 20 21 21 20 Johannesburg 8 5 9 8 8 8 9 Kempton Park 4 5 10 7 7 7 7 7 Pretoria 8 8 0 Hatfield 81 78 • Vacancies at the end of January 2024 were at 8% excluding The Fields 30 26 • Sligh
Slide 9: Commercial portfolio overview
COMMERCIAL PORTFOLIO OVERVIEW Retail street shops and shopping centres In our convenience shopping centres several deals at much improved rentals with lease periods ranging between three to five years have been concluded, eg Steve Madden, Woolworths Edit, and Vida E Caffè. Above-inflation annual esc
Slide 10: Commercial portfolio overview [continued]
COMMERCIAL PORTFOLIO OVERVIEW [CONTINUED] Core lettable vacancies* by sector Government: Renewals • A three-year lease renewal was concluded at Odeon Forum for 3 102m² January 2024 January 2023 at a rent reversion for the first year of the renewal period and an escalation of 6.5% per annum thereafte
Slide 11: Leases >3 000m² expired prior to FY2024
LEASES > 3 000M² EXPIRED PRIOR TO FY2024 AT 31 JANUARY 2024 Building Tenant Lease expiry GLA (m²) Renewal status Capitol Towers City of Tshwane – 12 086 Tenant remains on a monthly tenancy. North Metropolitan Municipality Asland Salvage Car Dealers – 3 322 Tenant remains on a monthly tenancy. Cuthch
Slide 12: Leases >3 000m² expiring in FY2024
LEASES > 3 000M² EXPIRING IN FY2024 AT 31 JANUARY 2024 Building Tenant Lease expiry GLA (m²) Renewal status CCMA Place CCMA September 2023 3 598 Lease extension concluded at a 6% escalation for eight months effective 1 October 2023, and negotiations on a further renewal are underway. Marlborough Hou
Slide 13: Collections / Arrears
COLLECTIONS / ARREARS Total collections as at 31 January 2024 110 105 100 95 90 85 80 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Commercial Residential Total Collections at 96.9% in Residential and 95.3% in Commercial Arrears stable with collections in
Slide 14: Strategy update
STRATEGY UPDATE WOODMEAD VALUE MART
Slide 15: Strategy update: Financial sustainability
STRATEGY UPDATE Financial sustainability • Refinance of R350 million in facilities completed with tenors of five years • Settlement of R50 million corporate bond and issuance of a new corporate bond of R100 million • LTV levels expected to be maintained at below 40% in the short term • Moved DMTN pr
Slide 16: Strategy update [continued]
STRATEGY UPDATE [CONTINUED] Property portfolio • Sold and transferred one property for R4.5 million net of commission. • Actively working on the disposal of non-core assets that no longer fits our strategy. Capital expenditure • Completed the upgrade of HealthConnect, adjacent to Louis Pasteur Medic
Slide 17: Environmental, Social, and Governance (ESG) reporting
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) REPORTING Octodec continues to place increasing focus on ESG considerations. Social impact Education: ECD Centre, Cotlands • We recently launched the Kamane Educare Centre, a transformative ECD facility in Tshwane, underscoring our long-standing commitment
Slide 18: ESG reporting [continued]
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) REPORTING [CONTINUED] Medical: Dis-Chem Community Clinic • We recently partnered with Dis-chem to launch a Community Clinic in Tshwane, emphasising our commitment to improving the quality of services for communities in and around Tshwane by providing acces
Slide 19: ESG reporting: Environmental
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) REPORTING Environmental With environmental sustainability being a key area, we continue to roll out solar initiatives. Progress to date: • Completed three solar installations at Blaauw Village and Woodmead shopping centres and at Sildale industrial park •
Slide 20: Questions and answers
QUESTIONS AND ANSWERS CHAMBERS ON MUTUAL
Slide 21: OCTODEC INVESTMENTS LIMITED Pre-close update February 2024
OCTODEC INVESTMENTS LIMITED 20 Pre-close update February 2024
Octodec Investments — Corporate Update (February 2024) on 6ix