Exemplar Reitail Ltd. · JSE:EXP
Exemplar Reitail — 9M ended 28 February Earnings Presentation
38 slides from Exemplar Reitail's earnings presentation, Jun 4, 2019
Slide 1: Results Presentation for the 9 Months Ended 28 February 2019
R E S U LT S P R E S E N TAT I O N FOR THE 9 MONTHS ENDED 28 FEBRUARY 2019
Slide 2: 2019 Highlights
SECTION 01 RESSION 2019 HIGHLIGHTS
Slide 3: 2019 Highlights
2019 HIGHLIGHTS TOTAL ANNUALISED RETURN OF 14.2% FOR THE 9 MONTHS ENDED AVERAGE BASIC RENTAL THROUGH RATE R128,54 per m2 28 FEBRUARY 2019 BASED ON INCREASE IN NET TANGIBLE ASSET VALUE (NTAV) AND INTERIM DIVIDEND PER SHARE Property operating expenses achieved of 34,8 % VERSUS FORECAST OF 35.4% VACANC
Slide 4: Modi Mall Redevelopment
MODI MALL REDEVELOPMENT Completion/ acquisition of 5 054m2 expansion Fair value R260 million Footfall increase of Located in 33.9% Modimolle, (Nov-Mar 2017/2018 Limpopo vs Nov-Mar 2018/2019) Inclusion of Opened Shoprite as 2nd 1 November 2018 grocery anchor
Slide 5: Kwagga Mall
KWAGGA MALL Taxi rank expansion to 200 taxis Located in Kwaggafontein, Mpumalanga Fair value R690 million BEFORE Future proofing of assets AFTER Conversion into 12 122m2 fully enclosed EXPANSION (19 850m2 new build post 34 550m2 mall 7 728m2 demolition) BEFORE AFTER
Slide 6: Company Overview
SECTION 02 ERTS C O M PA N Y O V E R V I E W
Slide 7: Company Overview
COMPANY OVERVIEW LISTED ON MAIN BOARD OF JSE 12 June 2018, retail REIT sector 20 Fair value R5, 406 billion income-producing shopping centres of investment property Market leader in rural 331 388m2 retail space, across GLA 5 PROVINCES Operating profit of R330,6 million
Slide 8: The Property Portfolio
THE PROPERTY PORTFOLIO The Exemplar property portfolio comprises 20 income Investment property carrying generating properties. At the reporting date the property value make-up: R’000 portfolio is fairly valued at R5,406 billion against R5,036 Investment property 5,270,795 billion at listing, an incr
Slide 9: Our Business Model
OUR BUSINESS MODEL As can be seen from an analysis of our financials, our business model is a very simple one: GROSS PROPERTY INCOME [LESS] PROPERTY OPERATING EXPENSES LESS NET INCOME ADMINISTRATIVE OVERHEADS [LESS] NET FINANCE COSTS RENTAL AND RECOVERY INCOME R175,4 million property operating R504,
Slide 10: Competitive Advantage
SECTION 03 ERTISE C O M P E T I T I V E A D VA N TA G E
Slide 11: Competitive Advantage
467 YEARS ALL ASSETS internally managed of cumulative experience at the Group Inherent knowledge per centre ensures Under-scaling of developments UNPARALLELED in first phase to allow for UNDERSTANDING OF ASSET BASE FUTURE allowing us to maximise centre performance/long-term revenue growth GROWTH
Slide 12: Current Portfolio
SECTION 04 ERIENCE C U R R E N T P O RT F O L I O
Slide 13: Current Portfolio
CURRENT PORTFOLIO ALEX MALL 29 559m² Alexandra Economic Interest 100% Weighted ave. rental (R/m2) 129.17 TSAKANE MALL 39 422m² East Rand Economic Interest 50% Weighted ave. rental (R/m2) 141.13 PHOLA MALL 27 884m² KwaMhlanga Economic Interest 53% Weighted ave. rental (R/m2) 125.58 EMOYENI MALL 26 59
Slide 14: Strategic Focus
SECTION 05 OSURE S T R AT E G I C F O C U S
Slide 15: Strategic Focus
STRATEGIC FOCUS Focus on under-serviced markets TENANTS BY GEOGRAPHIC SEGMENT % BY GLA % BY REVENUE 37.5% 42.6% GAUTENG GAUTENG 24.5% 23.4% MPUMALANGA MPUMALANGA 15.7% KWAZULU-NATAL 17.8% KWAZULU-NATAL 15.0% LIMPOPO 16.1% LIMPOPO 3.3% EASTERN CAPE 4.1% EASTERN CAPE
Slide 16: Lease Expiry Profile
LEASE EXPIRY PROFILE By GLA By Revenue Vacant 3.1% MONTHLY February 2020 11.7% 12.8% February 2021 18.1% 21.4% February 2022 17.5% 19.2% February 2023 15.1% 16.3% After February 2023 34.5% 30.3% TOTAL 100.0% 100.0% 35.9% renewals already renewed at an average 7,36% escalation (based on revenue) 93.1
Slide 17: Tenant Profile (GLA)
TENANT PROFILE (GLA) 84,83% CATEGORY A 272 402 m2 Large international and national tenants, large listed Access to non-GLA tenants and government or smaller tenants in respect of which rental guarantees are issued. These include, income potential inter alia, Shoprite, Woolworths, Pick ‘n Pay, Supers
Slide 18: Expansion Pipeline
SECTION 06 EX PaNnsion PIPELINE EXEMPLAR
Slide 19: Pipeline
PIPELINE Right of first Relationship refusal to MPD’s with MPD pipeline of >550 000m2 GLA
Slide 20: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS Riba Cross 12 312m2 Burgersfort, Limpopo Katale Square Purchase price: R110,000,000 Mamelodi Mall 8 020m2 18 455m2 Marapyane, Mpumalanga JV with Putprop Limited Mamelodi, Gauteng Mabopane Square Purchase Price: R177,000,000 Mall of Tembisa 11 271 m2 46 089m2 Soshanguve
Slide 21: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS
Slide 22: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS
Slide 23: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS
Slide 24: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS
Slide 25: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS
Slide 26: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS
Slide 27: Short to Medium Term Prospects
SHORT TO MEDIUM TERM PROSPECTS
Slide 28: Outlook
SECTION O7 EX PEcTATION OUTLOOK \ EXEMPLAR
Slide 29: Outlook
OUTLOOK Capital raising activities SELF-SUFFICIENT E-COMMERCE IN PROVISION OF UTILITIES PENETRATION (Roof top PV to be rolled out across the portfolio) Malls as SOCIAL SERVICE CENTRES
Slide 30: Financials
SECTION 08 EX Plain FINANCIALS EXEMPLAR
Slide 31: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION Audited as at R’000 28 Feb 2019 Non current assets 5,439,942 Investment Property 5,270,795 Operating Lease Asset 168,351 Property, Plant and Equipment 796 Current assets 154,964 Loans Receivable 44,400 Trade and Other Receivables 47,711 Cash and Cash Equivalents 62,85
Slide 32: Statement of Profit and Loss and Other Comprehensive Income
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME Audited for the Forecast for the 9 months ended 9 months ended R’000 28 Feb 2019 28 Feb 2019* Property portfolio 517,431 547,858 Rental income and recoveries 504,240 510,088 Straight-line lease income adjustments 13,191 37,770 Property oper
Slide 33: Reconciliation Between Earnings and Distributable Income
RECONCILIATION BETWEEN EARNINGS AND DISTRIBUTABLE INCOME Audited for the Forecast for the 9 months ended 9 months ended R’000 28 Feb 2019 28 Feb 2019 Profit for the 9 months attributable to equity holders of Exemplar 335,937 191,585 Fair value adjustment to investment properties (161,697) 37,770 Non
Slide 34: Statement of Changes in Equity
STATEMENT OF CHANGES IN EQUITY Audited for the 9 months R’000 ended 28 February 2019 Retained Non-controlling Stated capital earnings interest Total Share issue for cash 1,889 - - 1,889 Shares issued to share scheme 42,551 42,551 Issue of shares on listing for acquisitions 3,024,339 - - 3,024,339 Sh
Slide 35: Statement of Cash Flows
STATEMENT OF CASH FLOWS Audited for the 9 months R’000 ended 28 Feb 2019 Cash generated from operations 304,172 Interest income 5,768 Finance costs (124,189) Dividends paid (60,093) Cash inflow from operating activities 125,658 Additions to investment property (52,608) Additions to property, plant a
Slide 36: Segment Analysis and Reconciliation to Distributable Income
S E G M E N T A N A LY S I S A N D R E C O N C I L I AT I O N TO DISTRIBUTABLE INCOME SEGMENT ANALYSIS Profit / (loss) from R’000 Revenue operations Investment property GLA (m2) Gauteng 220,526 153,465 2,399,000 124,103 Mpumalanga 121,197 80,654 1,298,825 81,136 KwaZulu Natal 81,006 48,308 753,000 5
Slide 37: Q&A
Q&A
Slide 38: Exemplar Reitail Limited
EXEMPLAR REITAIL LIMITED 012 660 3020 Sokatumi Estate info@exemplarREIT.co.za Corner Lyttelton Road and Leyden www.exemplarREIT.co.za Avenue @ExemplarREITail Clubview, Centurion, 0157 /EReitail
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