Spear REIT Ltd. · JSE:SEA
Spear REIT — Corporate Update (August 2021)
22 slides from Spear REIT's corporate update, August 2021
Slide 1: Pre-Close Investor Presentation and Trading Update
PRE-CLOSE INVESTOR PRESENTATION AND TRADING UPDATE FOR INTERIM PERIOD ENDING 31 AUGUST 2021
Slide 2: Table of Contents
TABLE OF CONTENTS I NT R OD U CTI ON A N D 1. EN V I R ON M E NTA L U P DAT E 2. S P EA R – C OV I D - 19 A N D BE YOND 3. HY 2022 I NTE R I M S A L I E NT D E TAIL S 4. S ECTOR A L P E R F OR M A N CE Y T D J U LY 2021 5. OUT LOOK 6. QUESTIONS Pre-Close Investor Presentation and Trading Update / In
Slide 3: Introduction and Environmental Update
INTRODUCTION AND 1. ENVIRONMENTAL UPDATE EMAIL QUESTIONS TO INFO@SPEARPROP.CO.ZA Pre-Close Investor Presentation and Trading Update / Interim Period 31 August 2021 3
Slide 4: Strategic Highlights and Focus
1 / INTRODUCTION AND ENVIRONMENTAL UPDATE / MISSION STATEMENT AND STRATEGY STR ATE G IC HIG HLIG HTS A ND FOCUS S T RAT E G I C H I G H L I G HTS Continuous and successful navigation of Covid-19 operating environment Optimal liquidity management achieved Maintained income statement consistency and s
Slide 5: Spear – Covid-19 and Beyond
SPEAR – 2. COVID-19 AND BEYOND Pre-Close Investor Presentation and Trading Update / Interim Period 31 August 2021 5
Slide 6: HY2022 Operating Snapshot – Pre-Close Update
2 / SPEAR – COVID-19 AND BEYOND / HY2022 OPERATING SN APSHOT — PRE-CLOSE UPDATE (INTERIMS) HY 2022 OPE RAT I N G S N A PSHOT STATUS QUO Challenging trading conditions persist Funders remain aligned with Spear’s strategies • Commercial Spear sufficiently capitalised to meet short- and long-term • Hos
Slide 7: HY2022 Interim Salient Details
HY2022 INTERIM 3. SALIENT DE TAILS Y T D J U LY 2021 Pre-Close Investor Presentation and Trading Update / Interim Period 31 August 2021 7
Slide 8: Portfolio Snapshot as at July 2021
3 / HY2022 INTERIM SALIENT DE TAILS / PORTFOLIO SN APSHOT AS AT JULY 2021 ASSETS 32 NUMBER OF PROPERTIES R4.54BN 1.09% R139M R9 491/M2 ASSET VALUE ASSET VALUE AVERAGE AVERAGE PROPERTY GROWTH PROPERTY VALUE VALUATION (FY2021) 6.45% LETTING AVERAGE IN-FORCE 470 881M2 93.47% 28 MONTHS R95.81/M2/PM ESCA
Slide 9: Portfolio Snapshot: Distribution, TNAV and Debt
3 / HY2022 INTERIM SALIENT DE TAILS / PORTFOLIO SN APSHOT AS AT JULY 2021 ON TRACK DISTRIBUTION 6% − 8% DPS GROWTH 80% − 95% 43.01% 7.21% FORECAST PAYOUT RATIO SA REIT COST-TO- SA REIT ADMIN INCOME RATIO COST-TO-INCOME RATIO TA N G I B L E N E T A S S E T VA L U E ( T N AV ) R11.86 R11.50 3.13% INCR
Slide 10: Collections (as at August 2021)
3 / HY2022 INTERIM SALIENT DE TAILS / COLLECTIONS (AS AT 27 AUGUST 2021) Year-to-date collections have been in line with management’s forecast C OLLECT I ON TO B I LLED Y T D P ER S ECTOR Billings reflect revenue after all credits and deferments including recoveries Budget set in January 2021 Tenant
Slide 11: Letting Activity
3 / HY2022 INTERIM SALIENT DE TAILS / LE T TING ACTIVIT Y T H E TABL E B E LOW RE F LECTS T HE LE T T ING ACT IVIT Y FOR THE PE R IOD: Expiries and Average gross Renewals/ Average gross vacated Gross rental at expiry rental New lets Gross rental at new rental Rental reversion GLA expiry R/m² GLA ren
Slide 12: Balance Sheet and Funding Update
3 / HY2022 INTERIM SALIENT DE TAILS / BAL ANCE SHEE T AND FUNDING UPDATE C OV EN ANTS : Y T D JU LY 2021 YTD JULY FY2021 COVEN ANTS Agreement reached to relax strictest bank covenants for FY2021 and W E I GHTE D AV E RAGE 28 30 FY2022 financial period VA RI A BLE E X P I RY M ONTH S M ONTH S COVENAN
Slide 13: Sectoral Performance YTD July 2021
SECTORAL PERFORM ANCE 4. Y TD JULY 2021 Pre-Close Investor Presentation and Trading Update / Interim Period 31 August 2021 13
Slide 14: Retail
4 / SECTORAL PERFORM AN CE Y TD JULY 2021 / RE TAIL RETAIL (48 695M2 GLA) All retail assets are classified as convenience retail Strong performance from convenience retail portfolio Retail portfolio occupancy: 93.37% Collections have been 95.79% versus revenue billed for the period to date Spear pro
Slide 15: Commercial
4 / SECTORAL PERFORM AN CE Y TD JULY 2021 / COMMERCI AL COMMERCIAL (133 879M2 GLA) All Spear’s commercial assets are located in highly attractive and established office nodes in Cape Town Lack of tenant demand continues to have impact on sector Office portfolio occupancy: 85.57% Collections have bee
Slide 16: Industrial
4 / SECTORAL PERFORM AN CE Y TD JULY 2021 / INDUSTRI AL INDUSTRIAL (260 229M2 GLA) Spear’s industrial portfolio has been resilient during the period, with a number of new lets and relets taking place in a very challenging market Industrial portfolio occupancy: 96.85% Collections have been 94.38% ver
Slide 17: Hospitality
4 / SECTORAL PERFORM AN CE Y TD JULY 2021 / HOSPITALIT Y HOSPITALITY (28 078M2 GLA) 15 ON ORANGE: EARNINGS CONTRIBUTION D OUBLE TREE BY HILTON, CAPE TOWN Serverely impacted by third wave Management focus − Disposal of hotel − Alternative use No tourism expected for FY2022 Sector hardest hit by the i
Slide 18: General Business Update: Continuity Risks (All Sectors)
4 / SECTORAL PERFORM AN CE Y TD JULY 2021 / ALL SECTORS GE NE R AL B U SIN ESS U PDAT E: C ONTI N U IT Y RISKS ( A L L S ECTORS ) General trading conditions remain tough, with early signs of increased demands for Spear rental properties Industrial and Retail sectors showing most resilience Office se
Slide 19: Outlook
5. OUTLOOK Pre-Close Investor Presentation and Trading Update / Interim Period 31 August 2021 19
Slide 20: Outlook
5 / OUTLOOK / OUTLOOK OUTLOOK Amid difficult trading environment portfolio remains of high quality, well located, sectorally defensive and underpinned by strong lease covenants Increased enquiries from non-Western Cape businesses post civil unrest Hands-on asset management and focus will continue to
Slide 21: Outlook (Continued)
5 / OUTLOOK / OUTLOOK OUTLOOK (CONTINUED) Spear remains well capitalised with sufficient liquidity and cash availability circa R150 million Acceleration of Spear’s ESG strategy through further PV solar and socio-economic impact investments Leasing and asset management team notes increased market act
Slide 22: Thank You – Questions?
6. QU E S T ION S T H ANK YOU QU ES T I ON S ? EMAIL QUESTIONS TO INFO@SPEARPROP.CO.ZA LIVE Q&A WITH CEO AFTER PRESENTATION Pre-Close Investor Presentation and Trading Update / Interim Period 31 August 2021 22