Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — 1H FY25 Earnings Presentation
24 slides from Vukile Property Fund's earnings presentation, Sep 25, 2024
Slide 1: Pre-close presentation 1H FY25
Pre-close presentation 1H FY25 25 September 2024 1
Slide 2: Agenda
Agenda 1. Introduction Laurence Rapp 2. South African retail portfolio overview and trading update Itumeleng Mothibeli 3. Castellana Properties overview and trading update Alfonso Brunet 4. Debt, Treasury and Capital allocation Laurence Rapp 5. Guidance Laurence Rapp 6. Questions and answers 2
Slide 3: 01 Introduction
01 Introduction LAURENCE RAPP 3
Slide 4: Very strong H1 performance across the business creates a solid base for our expansion strategy
01 INTRODUCTION PRE-CLOSE 25 SEPTEMBER 2024 Very strong H1 performance across the business creates a solid base for our expansion strategy Continuing to deliver strong operating performance in South Africa driven by our focus on customer centricity and in-depth knowledge of our shoppers Ongoing stro
Slide 5: 02 South African retail portfolio overview and trading update
02 South African retail portfolio overview and trading update I T U M E L E N G M OT H I B E L I 5
Slide 6: Retail portfolio performance and trading environment
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 25 SEPTEMBER 2024 Retail portfolio performance and trading environment Portfolio performance overview ▪ The portfolio has seen an improvement in trade, particularly in the township (5.3%) and rural (3.5%) segments with a trading density growth of 3.3% JUL
Slide 7: Retail category performance: year-on-year turnover growth
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 25 SEPTEMBER 2024 Retail category performance Environment of continued improvement in trade Year-on-year turnover growth Bottle stores Density 9,6% ▪ The fashion category (22% of GLA), showed a trading density growth Turnover 9,2% Sports of 3.2% (FY24 0.9%
Slide 8: Retail portfolio trading environment and footfall
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 25 SEPTEMBER 2024 Retail portfolio trading environment and footfall Our focus on customer loyalty driving continued increased footfall and sales ▪ Overall improvement in segmental portfolio trading density growth with 5.3% in Sales Footfall Load shedding %
Slide 9: Operating metrics & leasing activity
02 SOUTH AFRICAN RETAIL PORTFOLIO PRE-CLOSE 25 SEPTEMBER 2024 Operating metrics & leasing activity Continued vibrant leasing activity, supported by strong letting across all segments ▪ Most vibrant leasing activity (both 295 R R571 million new and renewals) was in the LEASES SIGNED RENT SIGNED towns
Slide 10: 03 Castellana Properties overview and trading update
03 Castellana Properties overview and trading update ALFONSO BRUNET 10
Slide 11: Trading environment
03 CASTELLANA PROPERTIES PRE-CLOSE 25 SEPTEMBER 2024 Trading environment Spain’s economy continues to demonstrate strength, with solid growth across key indicators ▪ Spanish GDP is projected to grow by 2.5% in 2024, an increase of 0.4% from the spring forecast while the projections for 2025 and 2026
Slide 12: Footfall and sales index
03 CASTELLANA PROPERTIES PRE-CLOSE 25 SEPTEMBER 2024 Footfall and sales index Steady growth in both footfall and sales confirming the extraordinary strength of the portfolio FOOTFALL & SALES INDEX 2019 = 100 140% 135,7% 131,7% 131,7% FOOTFALL: 130% 125,8% 126,6% 124,7% ▪ The accumulated number of vi
Slide 13: Sales performance per tenant category
03 CASTELLANA PROPERTIES PRE-CLOSE 25 SEPTEMBER 2024 Sales performance per tenant category Sales continue to grow consistently in all the categories € MILLION 120 3% 7% 100 80 SALES YTD JULY 2024 60 SALES YTD JULY 2023 40 9% 6% 3% 20 2% 5% -12% 3% 0 Fashion Homeware Health & Beauty Food & Beverage L
Slide 14: Operating metrics & leasing activity
03 CASTELLANA PROPERTIES PRE-CLOSE 25 SEPTEMBER 2024 Operating metrics & leasing activity Spectacular metrics with exceptional rental increases as well as KEY KPI’S YTD 31st OF AUGUST 2024 collections and occupancy levels PORTFOLIO OCCUPANCY (iii) 31 AUGUST 2024 98.4% 62 R €6.0 million LEASES SIGNED
Slide 15: Value-add project: El Faro Hipercor
03 CASTELLANA PROPERTIES PRE-CLOSE 25 SEPTEMBER 2024 Value-add project: El Faro Hipercor High demand from the major brands takes pre-letting to 80% ▪ Contract signed with LOTTERY (30 m2), PRIMOR (2,076 m2), ALVARO MORENO (1,356 m2), LEFTIES (6,742 m2) and FITNESS PARK (2,828 m2) ▪ Advanced negotiati
Slide 16: Value-add project: Vallsur
03 CASTELLANA PROPERTIES PRE-CLOSE 25 SEPTEMBER 2024 Value-add project: Vallsur Phase I in numbers ▪ 16% increase in number of visits YTD AUG 24 vs YTD AUG 23 and overcoming the 2019 figures in most months ▪ Sales grew by 7.1% in the F&B category since La Chismería opened in December 2023 ▪ Feedback
Slide 17: 04 Debt, Treasury and Capital allocation
04 Debt, Treasury and Capital allocation LAURENCE RAPP 17
Slide 18: Debt and treasury update
04 FINANCE AND TREASURY PRE-CLOSE 25 SEPTEMBER 2024 Debt and treasury update Strong balance sheet positioned for further growth opportunities Enhancements across all balance sheet metrics: Group LTV anticipated to be c.34% (40.7% at 31 March 2024) Strong liquidity, with Castellana’s successfully ref
Slide 19: Allocation of capital: South Africa
05 GUIDANCE PRE-CLOSE 25 SEPTEMBER 2024 Allocation of capital Consistently exploring acquisitions that need to be strategically aligned and financially accretive South Africa ▪ Various transactions being reviewed that are strategically aligned ▪ Due to the recent increase in our share price, transac
Slide 20: Allocation of capital: Spain
05 GUIDANCE PRE-CLOSE 25 SEPTEMBER 2024 Allocation of capital Consistently exploring acquisitions that need to be strategically aligned and financially accretive Spain ▪ Castellana continues to actively evaluate individual asset acquisitions in Spain ▪ Using 35 - 40% asset-backed debt, we are target
Slide 21: Allocation of capital: Portugal
05 GUIDANCE PRE-CLOSE 25 SEPTEMBER 2024 Allocation of capital Consistently exploring acquisitions that need to be strategically aligned and financially accretive Portugal ▪ As previously announced, Castellana will acquire an 80% share in a Portuguese company, which is acquiring three Portuguese shop
Slide 22: 05 Guidance
vukile Centres of Growth 05 Guidance LAURENCE RAPP
Slide 23: Guidance
05 GUIDANCE PRE-CLOSE 25 SEPTEMBER 2024 Guidance In light of the very strong performance in the prior financial year, with growth in FFO per share of 6.7% and 10.5% in dividends per share: ▪ With headwinds faced by the sector starting to change to tailwinds, we are well positioned to deliver on our
Slide 24: 06 Questions and answers
vukile of Growth O6 Questions and answers