Stor-age Property Reit Ltd. · JSE:SSS

Stor-age Property Reit — Merger or Acquisition (March 2019)

17 slides from Stor-age Property Reit's merger presentation, March 2019

  1. Slide 1: UK Acquisitions Investor Presentation March 2019

    STOR-AGE PROPERTY REIT UK ACQUISITIONS INVESTOR PRESENTATION MARCH 2019 STOR-AGE PROPERTY REIT LIMITED 1

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE Page Executive Summary 3 Storage King (UK) 4 UK Property Strategy 6 Acquisitions – Salient Terms 7 Acquisitions – Forecast 8 Overview – Viking Self Storage 9 Overview – Storage Pod 10 Annexures A: Snapshot – Sept 2018 12 B: Investment case 13 C: Performance 14 D: Strategy 15 E:

  3. Slide 3: Executive Summary

    EXECUTIVE SUMMARY • Aligned to current SA 5 year property strategy ending 2020 • Growth target – c.3 to 5 properties pa UK Strategy • Highly strategic – 6 geographical target areas • Combination of acquisitions and new developments • 2 properties, £23.49 million, offering c. 91 000 sqf GLA and an es

  4. Slide 4: Storage King (UK)

    STORAGE KING (UK) Overview • 6th largest UK self storage brand • Operating 28 properties throughout England (post Acquisitions) • Highly scalable, well invested infrastructure and experienced management • Long-established relationships with independent operators = opportunity Portfolio (post Acquisi

  5. Slide 5: Storage King (UK) (continued)

    STORAGE KING (UK) (continued) Performance (September 2018) • Strong operating performance to September 2018 • Occupancy increased by 4 000 m² y-o-y, including LFL growth of 1 300 m² • Closing occupancy of 81.2%, up 3.0% since March 2018 (6 months) • Average rental rate of £21.46, up 1.6% since March

  6. Slide 6: UK Property Strategy

    UK PROPERTY STRATEGY Aligned to current 5Y property strategy ending 2020 • Growth target – c. 3 to 5 properties pa • Highly strategic – 6 geographical target areas • Combination of acquisitions and new developments • Supply threshold – 1 sqf per capita outside M25, 3 sqf per capita inside M25 Acquis

  7. Slide 7: Acquisitions – Salient Terms

    ACQUISITIONS – SALIENT TERMS Viking Self Storage Storage Pod • 1 March 2019 • SPA signed 6 March 2019 Effective Date • Transaction is unconditional • Effective date expected on or about 26 March 2019 • Initial consideration of £12 million • Initial consideration of £11.49 million • Within 20 busines

  8. Slide 8: Acquisitions – Combined Forecast

    ACQUISITIONS – COMBINED FORECAST GBP’000 ZAR’000 One month ending Year ending One month ending Year ending 31 March 2019 31 March 2020 31 March 2019 31 March 2020 Revenue 102 2 142 1 879 41 213 Operating costs (25) (586) (456) (11 266) Operating profit before GBP finance 77 1 556 1 423 29 947 costs

  9. Slide 9: Overview – Viking Self Storage

    OVERVIEW – VIKING SELF STORAGE Salient features • The property is located in Bedford, Bedfordshire, in the East of England • c.58 miles north of London • Good road frontages to both the Norse Road and A4280 • Easy access to the A421 Bedford Southern Bypass which has direct links to the A1 and M1 Ten

  10. Slide 10: Overview – Storage Pod

    OVERVIEW – STORAGE POD Salient features • The property is located in Weybridge, Surrey, in the South East of England • c.25 miles south west of London Tenure Freehold GLA (sqf) 42 848 Property yield 2020 c.6.51% Description 28 Avro Way, Weybridge MLA (sqf) 55 000 Average rental rate £22.72 per sqf O

  11. Slide 11: Annexures

    A. Snapshot – Sept 2018 ANNEXURES B. Investment case C. Performance D. Strategy E. Strategic entry into the UK market – Nov 2017 F. Overview of UK self storage industry STOR-AGE PROPERTY REIT LIMITED 11

  12. Slide 12: Snapshot – Sept 2018

    SNAPSHOT – SEPT 2018 Listing date November 2015 JSE sector Speciality REITs Profile Highly specialised, low risk, income paying self storage REIT Self storage 10 publicly traded self storage REITs universe (US: 5, UK: 2, EU4: 1, Aus: 1, SA: 1) Market R4.6 billion1 capitalisation Total South Africa U

  13. Slide 13: Investment Case

    INVESTMENT CASE ANNEXURE B Attractive sector Niche asset class uncorrelated to traditional drivers of property – recession-resilient Dynamic specialists, allowing for focused attention, delivering superior returns; Leading sector specialists 2017 – strategically entered UK: scalable platform opportu

  14. Slide 14: Performance

    PERFORMANCE ANNEXURE C Share performance 14 month Share price performance relative to SA Listed Property Index (since listing) performance: Strong relative R1.276 billion equity raise, 2.5% discounta to 30 day to SAPI VWAP 160% 45 R400 million equity a discount raise, 2.5% to 30 day VWAP 40 140% 35

  15. Slide 15: Strategy

    STRATEGY ANNEXURE D Sector specialists – with deep product understanding and established global peer networks Outstanding locations Highly strategic – in planning and execution at both macro and micro level High quality Growth – acquisition of quality assets, organic growth through improved operatio

  16. Slide 16: Strategic Entry into UK Market – Nov 2017

    STRATEGIC ENTRY INTO UK MARKET – NOV 2017 • Sector growth in UK is positive, with increasing demand Resilient sector • Supply constrained – undersupply in comparison to more established US and Australian markets with strong growth • Average net rentals and occupancies across UK sector increasing att

  17. Slide 17: Overview of UK Self Storage Industry

    OVERVIEW OF UK SELF STORAGE INDUSTRY ANNEXURE F THE UK MARKET PRESENTS A STRONG GROWTH OPPORTUNITY 1 505 76.1% 8.8% self storage properties, offering Occupancy on y-o-y increase in approximately 44.6 million sqf of space current lettable space total space occupied 29 600 sqf 44.6 m sqf 2.4 m sqf 30%

Stor-Age Property REIT — Merger or Acquisition (March 2019) on 6ix