Grit Real Estate Income Group Limited · LSE:GR1T
Grit Real Estate Income — Investor Presentation (March 2018)
22 slides from Grit Real Estate Income's investor presentation, March 2018
Slide 1: Ghana Site Visit
Ghana Site Visit MARCH 2018
Slide 2: Contents
Contents Group Overview Country Overview Pipeline Assets Ι 2
Slide 3: Hosting today
Bronwyn is a founding member and CEO of Grit Real Estate Income Group, the largest pan-African Hosting today focused real estate group listed on the JSE and SEM (stock exchanges in South Africa and Mauritius respectively). Bronwyn has over 10 years’ experience in the real estate investment sector. S
Slide 4: Matt Jones and Anisha, investment team
Matt leads Grit’s expansion strategy across Africa, particularly entry into new markets and new sectors. Prior to joining Grit, Matt was the Vice President of Real Estate at Investbridge Capital, a Dubai-based firm specializing in structured finance and private equity investments in real estate acro
Slide 5: Group Overview
Group Overview
Slide 6: Interim Results Highlights
Interim Results Highlights H1 FY18 Distribution WALE1 WACD2 NAV US$6.07cps 7.4 years 5.69%3 US$152.7 cps4 within forecast -9 bps vs. FY17 +2.1% from FY17 1. Weighted Average Lease Expiry 2. Weighted Average Cost of Debt 4. US$158.7 cps pre dividend 3. As at 31 December 2017 Dividend Yield Portfolio
Slide 7: Grit at a glance
Grit at a glance Improved liquidity through dual-listing on the JSE Main Board and SEM Official Market • Market capitalisation: US$302m* • Dividend yield: 8.6% (SEM); 9.6% (JSE)* • Free Float: 45.9% (as per JSE) Attractive and sustainable hard currency income stream 8 declared distributions in line
Slide 8: Portfolio Overview
Portfolio Overview LIGHT LIGHT CORPORATE CORPORATE HELD FOR EQUITY LISTED RETAIL RETAIL COMMERCIAL HOSPITALITY HOSPITALITY INDUSTRIAL INDUSTRIAL ACCOMMODATION RESIDENTIAL DEVELOPMENT COMMODITY VDE HOUSING ZIMPETO SQUARE BOLLORE ESTATE LLR (6.25%) HOUSE LUX: MALL DE TETE Phase 1 IMPERIAL: Tamassa BUF
Slide 9: Africa Macro Roundup
Africa Macro Roundup Morocco Kenya ➢ Dirham allowed to trade within a ➢ Kenya's presidential rerun handed band of +/- 2.5% around its peg over victory to Uhuru Kenyatta ➢ Real GDP growth of 4.6% in 2017 ➢ Prime interest rate cut by 50bps to compared to 1.2% in 2016 9.5% ➢ Benhmark interst rate maint
Slide 10: Looking ahead
Looking ahead • Country diversification into new jurisdictions with promising growth prospects • Introducing new shareholders at NAV • Expansion of international brands, tenant base and relationships • Asset growth through new accretive acquisitions • Asset diversification whilst ensuring secure, ha
Slide 11: Country Overview
Country Overview
Slide 12: Country Overview
Country Overview Real GDP Growth [Q3 2017 - 8.3 provisional] (%) Real GDP Growth 6.45 [5-year Average] (%) Population [2016] (Millions) 28.8 GDP per capita [2016] (US $) 4.29k Unemployment [Q2 2017] (%) 25.3 Urban Population [2016] 32.5 (% of total) Inflation [latest] (%) 10.8 Mainly services (more
Slide 13: Country Risk Analysis
Country Risk Analysis Margins of Safety Opportunities Investment Strategy Investment into Ghana is ramping up, with Accra as a regional economic Grit as the preferred corporate upcoming developments such as the new Hard currency leases and logistics hub real estate partner airport due for completion
Slide 14: Key economic updates
Key economic updates New Patriotic Party elected in 2016 has track record pursuing a strong political agenda geared towards economic growth • Pledged to reduce budget deficit and efficiently manage public sector spending • Fiscal consolidation policies announced in March 2017 reversed the economic u
Slide 15: Pipeline Assets
Pipeline Assets
Slide 16: Accra Financial Center
Accra Financial Center Independence Avenue, Ridge, Location: Central Business District Sector: Commercial offices Property Yield: 8.62% GLA: 14,610m² Rental per m² $35.56 Vacancy: 0% (Rental Guarantee) WALE ¹: 5.75 years Escalation: 5.3% Current Valuation: US$ 79.3 million² Anchor Tenant: Agricultur
Slide 17: 5th Avenue Corporate Offices
5th Avenue Corporate Offices Osu Avenue Extension, Location: Cantonments Sector: Commercial offices Property Yield: 10.13% GLA: 5,070m² Rental per m² $33.11 Vacancy: 0% (Rental Guarantee) WALE ¹: 3.0 years Escalation: 3.9% Current Valuation: US$ 14.5 million Anchor Tenant: American Tower Corp, GCNET
Slide 18: Stanbic Heights
Stanbic Heights Location: Airport City Sector: Commercial offices Property Yield: 8.75% GLA: 19,443m² Rental per m² $33.90 Vacancy: 8.81% WALE ¹: 5 years Escalation: 4.6% Current Valuation: US$ 90 million² Anchor Tenant: Stanbic Bank 1 – based on lease renewal as condition Ι 18 precedent of transact
Slide 19: Capital Place
Capital Place Patrice Lumumba Road, Airport Location: Residential Sector: Commercial offices Property Yield: 8.86% GLA: 4,944m² Rental per m² $39.68 Vacancy: 0% WALE ¹: 5.2 years Escalation: 5% Current Valuation: US$ 25.5 million Anchor Tenant: Hollard, Maersk Drilling Ltd 1 – based on lease renewal
Slide 20: CADS II Building
CADS II Building George W. Bush Highway, Location: North Dzorwulu Sector: Commercial offices Property Yield: 8.42% GLA: 7,262m² Rental per m² $35.00 Vacancy: 0% WALE ¹: 10 years Escalation: 2.0% US$ 36.65 million total value Current Valuation: (Grit acquiring 50% interest) 1 – based on lease renewal
Slide 21: Thank you
Thank you Grit Real Estate Income Group Reg. No. C128881 3rd floor, La Croisette Shopping Centre, Grand Baie 30517, Mauritius Level 3, Alexander House, 35 Cybercity Ebene 72201, Mauritius T +230 269 7090 E communications@grit.group
Slide 22: Disclaimer
Disclaimer This report has been issued and approved for use by you solely for your information and should not be considered to be an offer or solicitation of an offer to buy or sell or subscribe for any securities, financial instruments or any rights attaching to such securities or financial instrum
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