Redefine Properties Limited · JSE:RDF
Redefine Properties — H1 2023 Earnings Presentation
111 slides from Redefine Properties's earnings presentation, Feb 28, 2023
Slide 1: Group interim results for the six months ended 28 February 2023
GR Please follow our LinkedIn page for more details Group interim results for the six months ended 28 February 2023 1
Slide 2: First half 2023 strategic outcomes
First half 2023 strategic outcomes Focusing on the variables under our control as we execute our strategic priorities GR IS OC OE ET Achieved three Net Zero 71.4% of local staff Restructured ownership of Maintained loan-to-value Carbon: Level 2 Improved active SA NOI promotions were African, governm
Slide 3: GR Growing reputation
GR GR Growing reputation Providing the foundation for Redefine to deliver on its purpose Group interim results for the six months ended 28 February 2023 33
Slide 4: Group key outcomes for the first half of 2023
Group key outcomes for the first half of 2023 GR ESG is critical to mitigating top risks and driving sustainable value creation Environmental Social Governance Primary UN SDGs Increased Bolstered business Strengthened compliance post Scope 1 GHG emissions continuity plan greylisting Due to higher di
Slide 5: Our approach is driven from a place of purpose
Our approach is driven from a place of purpose GR Putting people at the heart of what we do Our MISSION Our PURPOSE is to Our VISION is to create and manage be the leading In this decade to South African REIT deliver the smartest spaces in a way and most sustainable that transforms lives spaces the
Slide 6: Our refreshed pathways to bring our mission (moonshot) to reality
Our refreshed pathways to bring our mission (moonshot) to reality GR It’s not what we do, but how we do it that sets us apart Embedding Mobilise digital Nurturing and Being a catalyst for Being curious diversity, equity transformation optimising our good innovators and inclusion ecosystems Creating
Slide 7: Socioeconomic development in action
Socioeconomic development in action GR Living our purpose to create and manage spaces in way that transforms lives Strategy Evolution of CSI socioeconomic development strategy forms part of our overall impact framework Strategic alignment to primary and secondary UN SDG’s Conclusion of socioec
Slide 8: Shifting our emphasis to what matters most
Shifting our emphasis to what matters most GR Being who we say we are to all our stakeholders ESG retail design features Focus areas: 2023 second half → Reduce consumption of grid-supplied energy through efficiency interventions, collaboration with key stakeholders, and solar PV expansion → Create s
Slide 9: IS Investing strategically
IS IS Investing strategically A well-diversified asset base, poised to continue delivering sustainable returns Group interim results for the six months ended 28 February 2023 99
Slide 10: Group property asset platform
Group property asset platform IS A quality and diversified portfolio that delivers sustainable risk-adjusted returns Property assets Geographically diversified Group use of cash flow of R3.1 billion under management portfolio R94.1 billion SA R59.4 billion (FY22 | R58.9 billion) Distribution 1 301 (
Slide 11: South Africa portfolio profile
South Africa portfolio profile IS Diversification and quality create a defensive asset platform Impact of portfolio repositioning Carrying value of properties Total GLA # R58.9 billion 3 839 thousand m² 25 000 302 350 (FY22 | R58.2 billion) (FY22 | 3 865 thousand m²) 296 272 258 259 300 20 000 15 85
Slide 12: South Africa portfolio key outcomes
South Africa portfolio key outcomes IS Focusing on organic growth in an environment of constrained revenue and rising costs Weighted average exit cap rate per sector (core portfolio) Portfolio revaluation Active vacancy -0.1% 7.5% Retail 8.1% (FY22 | 1.4%) (FY22 | 6.7%) Industrial 8.7% Office 8.8% S
Slide 13: South Africa retail portfolio profile
South Africa retail portfolio profile IS Well positioned to withstand headwinds and capture emerging trends Type by value Carrying value Number of properties R24.2 billion 59 (FY22 | R24.0 billion) (FY22 | 60) 6% 15% Super regional Number of tenants GLA Regional 2 639 1 149 thousand m² Convenience (
Slide 14: South Africa retail portfolio key outcomes
South Africa retail portfolio key outcomes IS Continued improvement in operating metrics Contribution to vacancy by type Vacancy by type 12% Super regional 4.8% Annual trading density Active vacancy 33% 13% Regional 1.7% 4.4% Convenience 4.3% R32 800 per m² 4.4% (HY22 | R31 200 per m²) (FY22 | 4.4%)
Slide 15: South Africa office portfolio profile
South Africa office portfolio profile IS Diversified portfolio with a positive weighting to quality space in popular nodes Value by grade Carrying value Number of properties R22.2 billion 102 (FY22 | R22.0 billion) (FY22 | 101) Premium Grade 14% A Grade Secondary Grade* Number of tenants GLA 1 157 1
Slide 16: South Africa office portfolio key outcomes
South Africa office portfolio key outcomes IS Demand for quality space continues but rental levels remain under pressure Contribution to vacancy by grade Vacancy by grade 17% Premium Grade 6.7% Green Star SA Certifications Active vacancy 37% A Grade 15.6% 14.3% Secondary Grade 22.7% 139 certificatio
Slide 17: South Africa industrial portfolio profile
South Africa industrial portfolio profile IS A quality portfolio that has proven to be defensive Type by value Carrying value Number of properties R11.9 billion 95 Warehousing (FY22 | R11.6 billion) (FY22 | 94) 10% Light manufacturing 2% 17% Heavy grade industrial 12% Industrial units Number of tena
Slide 18: South Africa industrial portfolio overview key outcomes
South Africa industrial portfolio overview key outcomes IS Portfolio performance underpinned by solid performance of key assets Contribution to vacancy by type Vacancy by type 16% Warehousing 8.6% Green Star SA Certifications Active vacancy Light manufacturing 1.0% 44% 4.9% Modern Logistics 9.2% 15
Slide 19: Alternative income streams
Alternative income streams IS Maximising existing and creating new revenue streams Data centers Brand goes here LED network expansion → In negotiation: Flex Qube 5G edge data centres partnership → The current network includes 25 large format roadside/ in-mall LED screens across South Africa → Will u
Slide 20: Sale of government-tenanted office portfolio
Sale of government-tenanted office portfolio IS Restructured ownership enables the preservation of value Redefine owns a portfolio of 11 government-tenanted office buildings → 92% of the portfolio running on month-to-month leases is not sustainable → To secure long-term leases with government, 51% b
Slide 21: International portfolio profile
International portfolio profile IS Exposure to Polish retail and logistics sectors provides stability that is decoupled from local fortunes Value by sector (%) Platform carrying value See-through value R34.7 billion (FY22 | R30.0 billion) 45.0% (FY22 | 41.9%) of group assets 15% 3% Retail Office Ind
Slide 22: Overview of Polish retail market
Overview of Polish retail market IS Healthy market fundamentals bode well for the retail real estate market The Polish retail market The market has absorbed several challenges Consumer preferences have shifted 12.79 million m² Stock High inflation, rising energy prices and Market share growth record
Slide 23: EPP Core portfolio key outcomes
EPP Core portfolio key outcomes IS Improving performance from a stabilised asset base Percentage of EPP’s Core* GLA by retail category Valuation of EPP Core* Vacancy of EPP Core* Fashion & accessories 36.7% R18.2 billion 2.9% Food/groceries/supermarkets 21.7% (FY22 | R16.8 billion) (FY22 | 3.5%) Ent
Slide 24: EPP joint venture key outcomes
EPP joint venture key outcomes IS High leasing activity despite challenging market conditions 75% of GLA and 65% of GOI extended beyond the maturity of M1 master lease in April 2024 M1 joint venture 50.0% Metro portfolio take-over programme well advanced Metro claim rejected by EPP and current
Slide 25: Overview of Polish Logistics market
Overview of Polish Logistics market IS The market has responded well to a new reality resulting from the geopolitical and economic situation Polish logistics to outperform the Eurozone* Indexation and higher construction Increased finance costs and pre-letting costs requirements Poland France German
Slide 26: ELI key outcomes
ELI key outcomes IS Continued expansion in a growing market Geographical spread Carrying value of properties Active vacancy R15.9 billion 5.9% (FY22 I R12.2 billion) (FY22 I 6.5%) Tricity Active weighted average Active income producing GLA unexpired lease term by GLA Białystok Szczecin 838 385m² 5.9
Slide 27: Establishing a presence in the Polish self-storage sector
Establishing a presence in the Polish self-storage sector IS Synergistic opportunities to optimise our existing Polish assets The initial acquisition of 51% of Stokado has been concluded Self storage floor space per million people → A strong development pipeline is under consideration, which will ef
Slide 28: Group committed capital allocation priorities
Group committed capital allocation priorities IS Allocating capital to position asset platform for sustained value creation Improving: R157 million Expanding: R713 million High → Revenue-enhancing operational capital expenditure → European logistics platform developments → Solar PV/smart metering/Pr
Slide 29: Shifting our emphasis to what matters most
Shifting our emphasis to what matters most IS Creating smart, sustainable and relevant spaces ESG industrial design features Focus areas: 2023 second half → Preserve value through organic growth and asset optimisation → Reduce reliance on municipally supplied utilities through innovative solutions a
Slide 30: OC Optimising capital
OC OC Optimising capital Diversified funding enables consistent delivery of value Group interim results for the six months ended 28 February 2023 30 30
Slide 31: Group key outcomes for the first half of 2023
Group key outcomes for the first half of 2023 OC Stable credit metrics anchors balance sheet strength in a volatile macroeconomic environment Sources of cash flow of R3.1 billion SA REIT LTV Interest cover ratio 40.9% 2.5x Net cash generated from operations 1 241 (FY22 | 40.2%) (FY22 | 2.8x) Net deb
Slide 32: SA REIT loan-to-value ratio within range
SA REIT loan-to-value ratio within range OC Maintained LTV within our medium-term range of 38% to 41% 1.5% 40.9% 40.2% 0.5% 0.3% 0.3% 0.3% 0.1% (1.4%) (0.4%) (0.3%) (0.2%) FY22 LTV Operational EPP disposals Forex SA disposals Vendor loans Valuation Fair value SA acquisitions International SA capex F
Slide 33: Stable funding profile
Stable funding profile OC FY23 maturities secured and proactively progressing early renewals of FY24 and FY25 maturities → Recently secured the renewal of Echo Kielce and Marcelin facilities of R3.2 billion → Funders are constructive and have an appetite to refinance the facilities → FY24 maturing b
Slide 34: Interest rate hedging
Interest rate hedging OC Maintained a stable group-wide hedging profile → 81.2% of total group debt hedged for an average term of 1.7 years Implied and End End End forecasted repo rate 2023 2024 2025 → High inflation coupled with rapidly rising interest rates is impacting funding costs Market consen
Slide 35: Diversification of funding sources
Diversification of funding sources OC Repositioning balance sheet to support consistent value creation Sources of debt HY23 Sources of debt FY22 Listed Bonds 16.4% Standard Bank 16.3% Standard Bank 15.3% Nedbank 12.4% RMB 11.7% RMB 12.2% Nedbank 7.5% Santander 6.8% Listed Bonds 12.2% ABSA 6.5% Unlis
Slide 36: Shifting our emphasis to what matters most
Shifting our emphasis to what matters most OC Efficiently sourcing capital in a constrained environment Drivers of the cost of capital 12% Focus areas: 2023 second half 10% South Africa 8% → Proactive renewal of maturing debt facilities and extending 6% debt maturity profile 4% 2% 0% → Vigilant mana
Slide 37: OE Operating efficiently
OE OE Operating efficiently Robustly maintaining operating margins Group interim results for the six months ended 28 February 2023 37 37
Slide 38: Group key outcomes for the first half of 2023
Group key outcomes for the first half of 2023 OE Meaningful progress in stabilising the group’s operating margin Active SA portfolio Active EPP Core portfolio Distributable income sensitivity analysis – cents per share operating margin operating margin 82.4% 85.7% Current loadshedding doubles in H2
Slide 39: Group financial headlines
Group financial headlines OE Restoration of EPP enhances quality of earnings Distributable income per share Distributable income per share Dividend per share for the period 60 51.5 52.9 53.7 23.9 cents 20.3 cents (HY22 | 26.3 cents) (HY22 | 23.7cents) 50 40 18.0 27.4 26.7 Distributable NAV improved
Slide 40: Group contributors to changes in distributable income
Group contributors to changes in distributable income OE EPP is making a meaningful contribution backed by cash Headwinds Tailwinds (296) 404 269 1 614 1 506 53 32 (148) 17 20 (45) 13 (41) (24) (20) (11) (7) HY Net local funding costs# Capitalised interest Antecedent earnings adjustment Realised for
Slide 41: Group change in NAV per share
Group change in NAV per share OE Geographic diversification underpins NAV uplift EPP 4.0 EUR ELI 1.9 EUR Vendor loans ZAR (1.8) Lango 0.2 USD Listed shares ZAR (0.5) EUR (8.3) ZAR (0.5) EUR 44.9 Journal 0.1 AUD Properties ZAR (1.9) USD (0.2) EUR (10.5) 23.0 6.2 0.6 44.9 750.8 720.1 (4.2) (8.5) (11.0
Slide 42: Dividend payout policy
Dividend payout policy OE Payout ratio balances liquidity requirements with stakeholder expectations Payout ratio considerations applied to distributable income: → Earnings recognised for International Financial Reporting Standards (IFRS) purposes but not received in cash → Funding to maintain and d
Slide 43: Managing the impacts of the energy crisis
Managing the impacts of the energy crisis OE ESG enhances operational resilience and supports long-term value creation → Total SA solar PV installed capacity increased to 31.9MWp since 2016 − Investing R142.5 million into solar PV expansion and increasing capacity by 12.9MWp − 18.1% projected initia
Slide 44: Shifting our emphasis to what matters most
Shifting our emphasis to what matters most OE Mobilising digital transformation across the value chain Digital ratio journey Focus areas: 2023 second half Base Current Medium-term Long-term → Preserve operating margin through a digital ratio digital ratio digital ratio digital ratio focus on efficie
Slide 45: ET Engaging talent
ET ET Engaging talent Capturing the value of diversity of thought Group interim results for the six months ended 28 February 2023 45 45
Slide 46: Group key outcomes for the first half of 2023
Group key outcomes for the first half of 2023 ET Embracing diversity to turn strategy into action Regrettable staff turnover Supporting our communities 75 EPP employees and 196 SA SA: 6.2% (FY22 | 7.2%) employees supported CSI initiatives Poland: 4.3% (FY22 | 8.0%) during the period SDG Innovation A
Slide 47: Creating a pipeline of real estate professionals
Creating a pipeline of real estate professionals ET Building a future-fit workforce powered by technology Ensuring that our employees are enabled by technology → Providing a single platform to: - Identify revenue enhancing opportunities across the value chain - Improve the efficiency and productivit
Slide 48: Shifting our emphasis to what matters most
Shifting our emphasis to what matters most ET Building a collective of people who create and manage spaces for positive impact The future-fit Focus areas: 2023 second half Redefine is → Review talent strategies to attract, retain and develop pool of key personnel to provide internal pipeline of scar
Slide 49: Wrap-up
Wrap-up It is how we strategically respond to the evolving market-shifting dynamics that will set us apart Group interim results for the six months ended 28 February 2023 49 49
Slide 50: Key takeouts
Key takeouts Redefine is positioned for the eventual upward cycle ESG office design features → Our moonshot pathways have been refreshed → ESG reach is being extended to our stakeholders → The diversified property portfolio has been positioned for organic growth – EPP stabilised → Deleveraging is co
Slide 51: In closing
In closing We will shoot for the moon by placing purpose, people and ESG at the heart of what we do → The prosperity of commercial property is underpinned by solid confidence, Why invest in Redefine predictable interest rate expectations, economic growth and constructive physical and human capital i
Slide 52: SI Supplementary information
SI SI Supplementary information Group interim results for the six months ended 28 February 2023 52 52
Slide 53: Contents
Contents PAGE PAGE SI GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME SOUTH AFRICA – OPERATING ACTIVITIES Redefine’s diversified property asset platform 54 South Africa | Portfolio overview 83 Reconciliation of property related assets 55 South Africa | Sectoral and geographical split 84 Reconciliatio
Slide 54: Redefine's diversified property asset platform
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Redefine’s diversified property asset platform SI Portfolio valued at R94.1 billion Local property portfolio International property portfolio Property portfolio 100.0% R58.9bn European Logistics platform 46.9% R5.1bn Retail 41.1% R24.2bn Lango Real Esta
Slide 55: Reconciliation of property related assets
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Reconciliation of property related assets SI RDF Head Europe Property assets (Rm) Retail Office Industrial Specialised office and ELI EPP Lango Journal Total FY22 property asset platform 24 114 21 993 11 625 547 691 4 667 25 086 182 25 88 930 Movement f
Slide 56: Reconciliation of cash generated to total distributable income
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Reconciliation of cash generated to total distributable income SI HY23 HY22 Rm Rm Net cash inflow from operating activities (as per statement of cashflows) 1 213 962 Items in cash flows from operating activities, but related to distributable income 296
Slide 57: Funds from operations
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Funds from operations SI SA REIT funds from operations (SA REIT FFO) per share Rm Rm HY23 HY22 Profit or loss per IFRS Statement of Comprehensive Income (SOCI) attributable to the parent 799 2 132 Adjusted for:- Accounting/specific adjustments:- 442 491
Slide 58: Funds from operations | continued
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Funds from operations | continued SI Rm Rm HY23 HY22 SA REIT FFO: 1 668 1 584 Number of shares outstanding at end of period (net of treasury shares) (millions) 6 752 5 720 SA REIT FFO per share (cents) 24.70 27.69 Company-specific adjustments (Rm) (53)
Slide 59: South Africa distributable income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa distributable income analysis SI Total SA Total SA Rm Retail Office Industrial Specialised Head office HY23 HY22 Property portfolio revenue 1 711 1 490 669 35 - 3 905 3 879 Operating costs (793) (546) (223) (13) - (1 575) (1 517) Expected c
Slide 60: 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 Rm EPP Europe funding storage funding Lango Journal HY23 HY22 Contractual rental income 986 - - - - - - 986 - Investment
Slide 61: South Africa portfolio income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa portfolio income analysis SI HY23 HY22 Change Active portfolio NOI contribution Rm Rm % Net operating income from investment properties 2 367 2 375 -0.3% 1% Net operating income from acquired / development properties (42) (7) 500.0% 18% Net
Slide 62: South Africa active portfolio expenditure analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME South Africa active portfolio expenditure analysis SI Change Rm % YTD HY22 519 Increased net municipal costs relate to vacancies in the office portfolio for triple net leases and council revaluations 7 25.0% Operating costs increased as a result of year
Slide 63: Group arrears and bad debts
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Group arrears and bad debts SI HY23 FY22 FY21 FY20 Rm Rm Rm Rm Gross arrears Trade receivables 358.5 353.2 436.3 563.4 Municipal recoveries 282.8 300.6 291.9 229.0 Less: Expected credit loss (ECL) provision (212.5) (243.7) (327.7) (402.7) Net arrears 42
Slide 64: Income hedging position by currency
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Income hedging position by currency SI FY23 FY24 FY25 FY26 EUR EUR amount (€m) 31.5 16.5 9.5 2.5 FEC rate (R: €1) 22.8 23.9 24.9 23.4 Group interim results for the six months ended 28 February 2023 64
Slide 65: Funding snapshot
FUNDING Funding snapshot SI Funding snapshot HY23 FY22 SA REIT BPR – LTV (min required <50%) 40.9% 40.2% Average term of debt 3.6 years 3.9 years % of debt secured 77.6% 83.9% % of asset secured* 69.6% 71.9% Weighted average cost of ZAR debt 9.2% 8.7% Weighted average cost of FX debt 3.3% 2.6% Weigh
Slide 66: JV Funding snapshot
FUNDING JV Funding snapshot SI HY23 Description M1 JV Community JV Galeria Mlociny Henderson JV ELI Weighted average length of debt (years) 4.3 2.3 2.2 1.3 4.5 Weighted average cost of debt (%) 4.6% 4.3% 3.8% 2.0% 3.5% Weighted average debt amortization per annum (%) 0.7% 2.8% 3.9% 2.0% 0.3% LTV bas
Slide 67: Loan-to-value calculation
FUNDING Loan-to-value calculation SI HY23 FY22 SA REIT BPR LTV ratio Rm Rm Value 94 125 88 931 Total assets 97 407 92 406 Less: Cash and cash equivalents (1 337) (1 765) Less: Derivative financial assets (776) (609) Less: Trade and other receivables (including other monetary assets) (1 169) (1 101)
Slide 68: Currency analysis of property assets and borrowings
FUNDING Currency analysis of property assets and borrowings SI HY23 FY22 Property assets Debt NAV hedge Weighted avg Property assets Debt NAV hedge Weighted avg Currency Rbn Rbn % cost % Rbn Rbn % cost % Net ZAR* 59.4 20.0 33.7% 9.2% 58.9 19.1 32.4% 8.7% EUR* 34.5 18.3 53.2% 3.3% 29.8 16.5 55.6% 2.6
Slide 69: Analysis of secured and unsecured debt to property assets
FUNDING Analysis of secured and unsecured debt to property assets SI Assets Debt LTV Rm Rm Secured 65 492 30 700 46.9% Local 44 231 18 870 42.7% Offshore 21 261 11 830 55.6% Unsecured 28 633 7 543 26.3% Local** 15 205 7 614 50.1% Offshore 13 428 (71) -0.5% Group LTV without CCS 94 125 38 243 40.6% C
Slide 70: Debt funding profile
FUNDING Debt funding profile SI Debt and interest rate swap maturity profile Equity headroom for the unsecured lender 80 68.1 10 65.9 63.4 ** 70 7.7 56.6 57.3 8 60 51.5 6.0 5.8 5.7 6.3 6.4 5.5 50 6 4.8 4.3 4.3 3.8 40 3.7 Rbn Rbn 4 30 1.2 20 2 1.0 - - 0.5 - 10 0 0 2023 2024 2025 2026 2027 2028 2029 2
Slide 71: JV Debt maturity profile
FUNDING JV Debt maturity profile SI HY23 M1 JV Community JV Galeria Mlociny Henderson JV ELI Rm % Rm % Rm % Rm % Rm % FY23 21.8 0.3 2 517.5 35.6 74.4 2.2 32.4 1.1 - - FY24 54.7 0.8 839.3 11.9 143.3 4.2 2 983.1 98.9 - - FY25 54.7 0.8 187.0 2.6 3 155.2 93.5 - - 989.7 15.3 FY26 2 111.0 29.3 728.7 10.3
Slide 72: Disposals | Non-core property assets
INVESTING ACTIVITIES Disposals | Non-core property assets SI Date Amount Property Province of transfer GLA (m²) (Rm) Retail 1 306 16 ABSA Centurion Gauteng Sep-22 1 306 16 Office 2 342 30 Wickham House Gauteng Sep-22 1 769 24 Schoeman Street (18% share) Gauteng Dec-22 344 4 Peugeot Hatfield (18% sha
Slide 73: South Africa | Non-current assets held for sale
INVESTING ACTIVITIES South Africa | Non-current assets held for sale SI Value Property Province GLA (m²) (Rm) Yield (%) Office 5 106 77 11.7% Duncan Street Gauteng 1 274 27 9.4% Abcon House Gauteng 2 015 35 13.7% Gleneagles Gauteng 1 817 15 11.4% Industrial 8 298 21 7.2% 9 Brons Street North West 8
Slide 74: South Africa | Acquisitions
INVESTING ACTIVITIES South Africa | Acquisitions SI Cost of Date acquisition Property Province of transfer GLA (m²) (R000) Yield (%) Office 18 327 404 Hertford Office Park (33.3% undivided share) Gauteng 29-Sep-22 17 587 395 7.9% GM Hatfield (24% undivided share) Gauteng 06-Dec-22 740 9 5.9% Industr
Slide 75: South Africa | New developments
INVESTING ACTIVITIES South Africa | New developments SI Development Projected Initial Total value of costs incurred Still to development yield work completed** during 2023*** spend Completion Property Province GLA (m²) Sector cost (Rm) (%) (Rm) (Rm) (Rm) date New developments completed Blue Route Ma
Slide 76: South Africa | Refurbishments completed
INVESTING ACTIVITIES South Africa | Refurbishments completed SI Projected Total value of Refurbishment redevelopment work completed costs 2023*** Completion Redevelopments completed* Province cost (Rm)* (Rm)** (Rm) date Retail 10 10 5 Oakfields Shopping Centre Gauteng 10 10 5 Nov-22 Office 13 13 12
Slide 77: South Africa Refurbishments in progress
INVESTING ACTIVITIES South Africa Refurbishments in progress SI Projected Total value of redevelopment work completed** Refurbishment Completion Still to spend Redevelopments* Province cost (Rm) (Rm) costs 2023 (Rm) date (Rm) Retail 60 50 47 10 Goldwalk – Tenant reconfiguration Gauteng 13 9 9 Nov-23
Slide 78: South Africa | New developments and refurbishments future committed pipeline
INVESTING ACTIVITIES South Africa | New developments and refurbishments future committed pipeline SI Projected development Budgeted initial Project start Future committed Province cost (Rm)* yield (%) date Black River Park – Central Western Cape 86 5.8% Mar-24 Kyalami Corner – Escalator Gauteng 8 -
Slide 79: South Africa | Infrastructure projects
INVESTING ACTIVITIES South Africa | Infrastructure projects SI Total value of Projected work infrastructure completed Infrastructure Completion Infrastructure projects completed* Province cost (Rm)* (Rm)** costs*** (Rm) date Industrial 48 48 25 S & J Industrial (90% share) – Infrastructure Ext 25-28
Slide 80: South Africa | Solar PV projects in progress
INVESTING ACTIVITIES South Africa | Solar PV projects in progress SI Plant Size Capex Initial return Property (kWp) (Rm) (%) Retail 10 593 115 17.8% South Coast Mall 3 221 31 16.6% Goldfields Mall 2 067 28 17.4% East Rand Mall (50% Share) 1 726 19 18.9% Wonderboom Junction 1 582 16 18.8% Centurion M
Slide 81: South Africa | Solar PV projects installed
INVESTING ACTIVITIES South Africa | Solar PV projects installed SI Plant Size Capex Initial return Property (kWp) (Rm) (%) Retail 25 341 270.0 Matlosana Mall 5 183 59.9 15.7% Centurion Lifestyle Centre 2 925 28.4 22.2% Stoneridge Centre 2 496 24.2 28.3% Park Meadows 1 900 19.1 20.7% Golden Walk 1 32
Slide 82: South Africa | Solar PV projects installed | continued
INVESTING ACTIVITIES South Africa | Solar PV projects installed | continued SI Plant Size Capex Initial return Property (kWp) (Rm) (%) Office 3 868 53.9 Black River Park 962 16.9 13.7% Observatory Business Park 599 10.5 13.7% Clearwater Office Park 547 5.4 24.6% Wembley Square 1 491 7.2 13.0% Ballyo
Slide 83: South Africa | Portfolio overview
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Portfolio overview SI HY23 FY22 Description Retail Office Industrial Specialised Total Total Number of properties 59 102 95 3 259 258 Number of tenants 2 639 1 157 280 1 4 077 4 060 Total GLA (m²) (thousands) 1 149 1 131 1 546 13 3 839 3 865 Total G
Slide 84: South Africa | Sectoral and geographical split
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Sectoral and geographical split SI Valuation GLA GMR Valuation GLA GMR Sector (Rm) No. of Properties (m²) (R000) Province (Rm) No. of Properties (m²) (R000) 2 695 Retail 24 240 59 1 149 098 205 165 Gauteng 43 183 182 345 506 471 Office 22 227 102
Slide 85: South Africa | Sector type analysis
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Sector type analysis SI Valuation GLA GMR Retail (Rm) (m²) (R000) Type by value Type by GLA Type by GMR Super regional 3 563 124 617 28 476 Regional 8 529 396 862 71 632 6% 15% 12% 11% 8% 14% Convenience 10 610 486 483 87 512 Other 1 538 141 136
Slide 86: 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 (Rm) GLA m² Tenant GLA m² (R000) Centurion Mall Gauteng 3 504 112 982 Macsteel 542 768 27 860 Alice Lane Gauteng 3 318 70 355 Government 160 409 24 185 Golden Walk Gauteng
Slide 87: 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 (Rm) GLA m² Tenant GLA m² (R000) Centurion Mall Gauteng 3 504 112 982 Foschini 61 630 14 329 Golden Walk Gauteng 1 508 44 203 Pepkor 76 249 11 931 Kenilworth Centre Western Cape 1 489
Slide 88: 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 (Rm) GLA m² Tenant GLA m² (R000) Alice Lane Gauteng 3 318 70 355 Government 123 611 18 680 115 West Street Gauteng 1 474 36 546 Alexander Forbes 23 830 11 581 Black River Office Park
Slide 89: 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 (Rm) GLA m² Tenant GLA m² (R000) 233 Barbara Road Gauteng 885 102 631 Macsteel 542 768 27 860 Hirt & Carter Cornubia KwaZulu-Natal 693 47 718 Hirt and Carter (South Africa) 47 718
Slide 90: South Africa | Specialised properties
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Specialised properties SI Value Property Region (Rm) GLA m² Tenant GLA m² GMR (R000) Bedford Gardens Hospital Gauteng 379 12 817 Bedford Gardens Hospital 12 817 3 533 Park Central Gauteng 139 - Loftus Park Hotel (25% Gauteng 44 - share) 100 100 100
Slide 91: South Africa | Undeveloped land
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Undeveloped land SI Value Property# Province (Rm) S & J Industrial Estate (90% share) Gauteng 758 Galleria (90% share) Gauteng 141 Atlantic Hills (55% share) Western Cape 137 Brackengate 2 Mainland Western Cape 77 Erf 179205 Western Cape 34 4 Keyes
Slide 92: South Africa | Retail portfolio | Turnover performance by business type
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Retail portfolio | Turnover performance by business type SI Turnover comparison (Rm) 30 000 25 000 20 000 15 000 10 000 5 000 0 Total Essential Apparel Hard-hit Homeware & Hardware Fast food Department Furniture Electronics Bottle store Toys Balance
Slide 93: South Africa | Retail portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Retail portfolio SI Market / Trends Forward looking priorities →Tenant retention, WAULT and vacancy reduction continues to be a key →Recovery of retail spend continues with SAPOA showing 12.5% growth in priority for management with improvement made
Slide 94: South Africa | Office portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Office portfolio SI Market / Trends Forward looking priorities →Well Located Quality P Grade properties are still showing the best demand →We continue to implement sustainability opportunities such as installing in the market Propelair toilets, ener
Slide 95: South Africa | Industrial portfolio
SOUTH AFRICA – OPERATING ACTIVITIES South Africa | Industrial portfolio SI Market / Trends Forward looking priorities → Manufacturing tenants unable to meet demand, generator power supply costs are → S&J Industrial Estate will be granted exemption from loadshedding up to stage 4 abortive, causing te
Slide 96: 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% 53.07% 70% 30% Number of properties 6 11 15 1 3 36 36 Number of tenant units 818 671 898 267 46 2 700
Slide 97: EPP core top 10 properties and tenants of total portfolio
POLAND – EPP OPERATING ACTIVITIES EPP core top 10 properties and tenants of total portfolio SI Value Value GLA GMR GMR Property (EURm) (Rm) GLA m² Tenant m² % (EUR000) (R000) % Galaxy 272 5 317 56 316 Auchan 46 834 611 11 932 Galeria Echo Kielce 217 4 243 71 385 LPP Group 13 526 344 6 716 Pasaż Grun
Slide 98: EPP M1 JV top 10 properties and tenants (50% shareholding)
POLAND – EPP OPERATING ACTIVITIES EPP M1 JV top 10 properties and tenants of total portfolio (50% shareholding) SI Value Value GLA GMR GMR Property (EURm) (Rm) GLA m² Tenant m² % (EUR000) (R000) % M1 Kraków 126 2 455 49 628 Auchan 134 932 M1 Czeladź 119 2 319 53 074 OBI 90 466 M1 Marki 102 1 996 47
Slide 99: EPP Community JV top 10 properties and tenants (53.07% shareholding)
POLAND – EPP OPERATING ACTIVITIES EPP Community JV top 10 properties and tenants of total portfolio (53.07% shareholding) SI Value Value GLA GMR GMR Property (EURm) (Rm) GLA m² Tenant m² % (EUR000) (R000) % Galeria Amber 91 1 781 33 084 LPP Group 27 994 Park Rozwoju 73 1 432 34 529 CCC Group 16 125
Slide 100: EPP Henderson JV top 10 properties and tenants (30% shareholding)
POLAND – EPP OPERATING ACTIVITIES EPP Henderson JV top 10 properties and tenants of total portfolio (30% shareholding) SI Value Value GLA GMR GMR Property (EURm) (Rm) GLA m² Tenant m² % (EUR000) (R000) % Malta Office Park 58 1 125 28 330 Mckinsey Emea Shared Services Sp. z o.o. 10 698 Symetris Busin
Slide 101: Galeria Mlociny JV top 10 properties and tenants (70% shareholding)
POLAND – EPP OPERATING ACTIVITIES Galeria Mlociny JV top 10 properties and tenants of total portfolio (70% shareholding) SI Value Value GLA GMR GMR Property (EURm) (Rm) GLA m² Tenant m² % (EURm) (Rm) % Młociny 386 7 546 80 765 Inter Cars S.A. - Office 6 075 Primark Sklepy 5 839 Inditex Group 5 587 M
Slide 102: EPP lease expiry profile
POLAND – EPP OPERATING ACTIVITIES EPP lease expiry profile SI Lease expiry profile by GLA (m²) EPP Lease expiry profile by EPP Community Galeria Henderson Total GLA (m²) Core M1 JV JV Młociny JV JV EPP Monthly 3 750 1 321 4 176 1 990 43 11 280 2023 8 419 2 791 4 306 6 713 14 198 36 427 2024 18 259 1
Slide 103: EPP BREEAM certifications
POLAND – EPP OPERATING ACTIVITIES EPP BREEAM certifications SI In use part 1: In use Part 2: Asset Asset performance* Building management** BREEAM in use part 1 EPP Core Galaxy Very Good Excellent Galeria Echo Kielce Very Good Very Good King Cross Marcelin Very Good Very Good Outlet Park Excellent E
Slide 104: ELI JV top 10 properties and tenants of total portfolio
POLAND – ELI OPERATING ACTIVITIES ELI JV top 10 properties and tenants of total portfolio SI Value Value GLA GLA GMR GMR Property (EURm) (Rm) (m²) Tenant m² % (EUR000) (R000) % Lublin II 90 1 767 87 598 Weber ^ 78 734 Warsaw Airport VI 78 1 531 72 260 LPP 64 224 Bielsko-Biala 75 1 470 71 466 Rohlig
Slide 105: ELI net operating income
POLAND – ELI OPERATING ACTIVITIES ELI net operating income SI HY23 HY22 HY23 HY22 EURm EURm Rm Rm Active assets * 6.1 5.8 119.9 113.3 Other assets ^ 6.7 3.3 131.0 65.0 Joint ventures 1.6 1.0 30.6 20.1 Disposed assets - 2.1 - 41.8 Total NOI 14.4 12.2 281.5 240.2 NOI margin on active assets 92.6% 92.0
Slide 106: ELI developments completed
POLAND – ELI OPERATING ACTIVITIES ELI developments completed SI GLA Development cost Development Fair value Fair value Letting Change Property (m²) (EURm) cost (Rm) (EURm) (Rm) (%) (%) Warsaw West (Błonie) phase I 31 276 24.4 476 24.7 483 100.0% 1.5% Lublin II (remaining phases) 45 216 29.5 577 34.1
Slide 107: ELI developments under construction
POLAND – ELI OPERATING ACTIVITIES ELI developments under construction SI GLA Development cost Development cost Pre-let Anticipated Property (m²) (EURm) (Rm) % completion date BTS Polish Post Radzymin * 52 728 49.5 966 100.0% Aug-23 Warsaw Błonie II (North) 43 695 34.1 666 57.8% Mar-23 Kraków North p
Slide 108: 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) 37 665 Central Silesia III phase III (Ruda Slaska) 16 081 Tychy (multi-let) (expansion) 4 017 Warsaw Airport Kinetyczna 55 787 Warsaw Targówek 24 294 Warsaw Błonie (West) phas
Slide 109: ELI BREEAM certifications
POLAND – ELI OPERATING ACTIVITIES ELI BREEAM certifications SI Asset New buildings BREEAM certified portfolio 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 14% 9% Czeladz phase I Very go
Slide 110: Disclaimer
Disclaimer This presentation may include forward-looking statements which statements 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 presentat
Slide 111: Thank you
Thank you Please follow our LinkedIn page for more details Group interim results for the six months ended 28 February 2023 111 111