Hyprop Investments Limited · JSE:HYP
Hyprop Investments — H1 2012 Earnings Presentation
19 slides from Hyprop Investments's earnings presentation, Jun 30, 2012
Slide 1: Unaudited interim results 30 June 2012
Unaudited interim results 30 June 2012 Agenda OVERVIEW FINANCIAL RESULTS OPERATIONAL PERFORMANCE LEASING DEVELOPMENTS PROSPECTS 2 1
Slide 2: Investment profile
OVERVIEW 3 Investment profile Largest listed shopping Total property assets centre fund Offices 1% Other (R776m) 4% (R246m) Premium quality shopping Listed property centres securities 10% (R2.1bn) Diverse tenant base with strong national profile 85% Shopping centres (R16.9bn) 4 2
Slide 3: Property portfolio and key features
Property portfolio Rentable Area Value Jun 2012 (m2) (Rm) Canal Walk 157 447 4 960 Super regional 157 447 4 960 28% The Glen 74 624 1 643 CapeGate Precinct 106 061 1 472 Clearwater Mall 85 174 2 641 Woodlands Boulevard 70 159 1 680 Large regional 336 018 7 436 42% Hyde Park 36 894 1 372 Rosebank Mal
Slide 4: Strategic achievements and distributions
Strategic achievements 30 June 2012 Further disposals of non-core assets Achieved Moody's rating Launched DCM programme Approval of investment in Africa Approval for commencement of Rosebank Mall redevelopment Improvement in operating efficiencies and systems Improvement in corporate governance comp
Slide 5: Track record
Track record Rbn LTV % 20 60% Investment property 17.9 17.4 Market cap LTV % 15.1 15 45% 12.9 10 9.4 9.5 26.2% 30% 8.7 24.7% 7.5 7.5 7.0 7.6 6.9 5 13.0% 12.6% 15% 8.9% 3.6% 0 0% 2007 2008 2009 2010 2011 June 2012 9 FINANCIAL RESULTS 10 5
Slide 6: Financial highlights and income statement extracts
Financial highlights Strong performance from larger shopping centres Saving in interest costs Improved performance from Sycom and Southern Sun Hyde Park Hotel Improvement in tenant arrears 11 Income statement ‒ extracts 30 Jun 2012 30 Jun 2011 Rm Rm Revenue 1 080 556 Investment property 1 002 498 10
Slide 7: Net income and revenue spread
Net income Shopping centres Value Centres Southcoast Mall 1% Canal Walk 13.0% Rosebank Mall 5% 27% Hyde Park 8% 10% CapeGate Precinct 16% 10% Clearwater Mall 10% Super regional Large regional The Glen Regional Woodlands Boulevard Value/ lifestyle centres 13 Revenue spread Municipal cost recovery 22%
Slide 8: Balance sheet extracts and valuations
Balance sheet ‒ extracts 30 Jun 2012 31 Dec 2011 (Rm) (Rm) Investment property 17 855 17 394 2.7% Listed property 2 133 2 176 (2.0%) Other assets 644 628 Total assets 20 632 20 198 2.1% Long term loans 4 146 4 192 Short term loans 1 125 1 347 Net asset value pu (R) 50.50 51.12 (1.2%) Net asset value
Slide 9: Borrowings and disposals
Borrowings 30 June 2012 31 December 2011 Net borrowings R5.0bn R5.2bn Gearing 24.7% 26.2% Average interest rate 8.4% 8.2% Debt at fixed rates 72% 60% Length of fixes 1 - 7 years 1 - 7 years Weighted average maturity 4 years 5 years Unsecured debt 14% 0% Moody’s rating A3.za / P-2.za 17 Disposals Pro
Slide 10: Operational performance: trading density
OPERATIONAL PERFORMANCE 19 Trading density Per month (R/m²) 3 500 5% Average portfolio growth: +9% 3 000 3 060 12% 16% 2 500 7% 2 520 8% 2 450 2 280 2 230 4% 12% 5% 2 000 15% 1 940 1 920 1 920 1 870 4% 1 500 11% 1 540 12% 1 290 1 000 1 110 500 - Hyde Park Canal Walk Clearwater The Glen Willowbridge
Slide 11: Gross rent to turnover
Gross rent to turnover % 12 Portfolio average: 7.3% 9.3% 10 3.4% (1.6%) (3.7%) 9.7 (1.6%) 9.2 9.1 0.2% 8.9 8 13.9% 6.5% 6.4% 8.3 8.1 7.6 7.4 7.3 0.7% 6 (2.1%) 6.1 10.7% 5.2 4 4.6 2 0 Rosebank Canal Walk Hyde Park Atterbury CapeGate The Glen Stoneridge Clearwater Woodlands CapeGate Somerset Willowbri
Slide 12: Lease activity and vacancies
Lease activity Area Rental growth Escalation (m²) (%) (%) Retail New lettings 18 268 7.6 9.0 Renewals 31 038 5.2 8.4 Total 49 306 6.1 8.6 % of retail portfolio 6.8% % of total portfolio 6.1% Offices New lettings 3 736 3.6 8.8 Renewals 4 462 5.2 9.1 Total 8 198 4.5 9.0 % of office portfolio 10.8% % o
Slide 13: Rosebank Mall redevelopment
DEVELOPMENTS 25 Redevelopment Rosebank Mall Redevelopment approved by Hyprop board Capital cost R920 million Anticipated first year yield 7% 2-year redevelopment programme with phased openings Key new tenants: ‒ Woolworths 8 500m² ‒ Edgars 6 000m² ‒ Dis-Chem 2 000m² Expansion of existing tenants inc
Slide 14: Other developments and investment into Africa
Other developments Completed Clearwater Enlarge Edgars & Jet Planning Enclose mall areas; improve parking and access roads; Willowbridge and improve tenant mix Enlarge Edgars and Woolworths; reconfigure La Piazza Canal Walk area The Glen Enlarge Edgars Future plans Woodlands Apply for additional bul
Slide 15: Prospects: looking ahead
PROSPECTS 29 Looking ahead Strategy Retain focus on core business ‒ Invest in sizable shopping centres Priorities Expand existing centres to meet tenant demand ‒ Rosebank Mall redevelopment Grow assets through acquisitions or developments ‒ Atterbury Africa Further disposals of non-core assets ‒ Off
Slide 16: Distribution growth and questions
Distribution growth Forecast 5% - 7% Negative Rising utility costs Vacancies at offices and value centres Impact of redevelopment programmes Positive Improved outlook compared to beginning of year Low interest rates Strong performance from super and large regionals National tenants eag
Slide 17: Shopper visits per square metre
APPENDICES 33 Shopper visits & shoppers /m²/month 25 (4%) Average portfolio growth: +3% 20 21 0% 2% 15 15 15 2% 1% 3% 8% 4% 10 12 12 11 11 10 5 0 Rosebank The Hyde Canal CapeGate Southcoast Woodlands Clearwater Mall Glen Park Walk Mall Boulevard Mall 34 17
Slide 18: Spend per head and top properties by value
Spend per head R 300 11% R 250 239 7% 10% R 200 (2%) 204 204 177 7% R 150 7% 8% 151 137 128 R 100 9% R 50 64 R0 Clearwater Woodlands Canal Hyde Park CapeGate The Southcoast Rosebank Mall Boulevard Walk Glen Mall Mall 35 Top 8 properties by value Canal Walk Clearwater Woodlands The Glen (80% undivide
Slide 19: Top properties by value (continued)
Top 8 properties by value – (cntd.) CapeGate Precinct Hyde Park Atterbury Value Mart Rosebank Mall Region Cape Town Region Johannesburg Region Pretoria Region Johannesburg Valuation (Rm) 1 472 Valuation (Rm) 1 372 Valuation (Rm) 943 Valuation (Rm) 922 Total GLA (m²) 106 061 Total GLA (m²) 36 894 Tot