Slide 1: Audited Consolidated Financial Results
The Western Cape REIT Credible Predictable Consistent Audited Consolidated Financial Results For the year ended 28 February 2025 | Presentation 22 May 2025
Slide 2: Table of Contents
TABLE OF CONTENTS 01. Introduction and Update 02. FY2025 Corporate Performance 03. Portfolio Overview 04. FY2025 Financial Performance 05. Sustainability Update 06. Acquisitions, Disposals, Developments and Property Valuations 07. Outlook and Guidance 08. Questions? WATERSIDE PLACE, TYGERVALLEY AUDI
Slide 3: Introduction and Update
1 Presenters: 9 LONG STREET, CAPE TOWN Quintin Rossi CEO Christiaan Barnard CFO INTRODUCTION AND UPDATE Kim Pfaff-Karg CIO AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 3
Slide 4: Spear Timeline
01. Introduction and Update| SPEAR TIMELINE This infographic shows our growth story to 2025 and the many milestones celebrated as Spear’s asset base and market cap grew. June 2017 2 Long Street acquired for R389 million June 2017 15 on Orange 2020 acquired for Radnor Logistics Warehouse 2024 R298 mi
Slide 5: Mission Statement and Strategy
01. Introduction and Update| M I S S I O N S TAT E M E N T A N D S T R AT E G Y THE MISSION To be the leading Western Cape-focused REIT and to consistently grow our distribution per share on an annualised basis and to operate within the top quartile of our peer group. O P E R AT I N G S T R AT E G Y
Slide 6: FY2025 Highlights
01. Introduction and Update| FY2025 HIGHLIGHTS Western Cape FY2025 DPS portfolio expansion Portfolio at a glance 81.27 cents per share R1.15bn acquisition cost R5.53 billion 95% payout ratio Acquired 13 prime real estate assets 20% portfolio value growth 93 500m2 at 9.46% portfolio yield 39 assets 4
Slide 7: FY2025 Corporate Performance
2 27 JUNCTION ROAD, PAROW FY2025 CORPORATE PERFORMANCE AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 7
Slide 8: Spear Total Return Profile
02. FY2025 Corporate Performance S P E A R T O TA L R E T U R N P R O F I L E 40% 339m R590m Gross number of Value of shares 35% shares issued traded 30% 27% 25% • Global contraction bond yield and rate cuts 20% 63.6m 19% • Asset allocators: Capital flows to REITS 15% • US rate cut dress rehearsal N
Slide 9: Portfolio Overview
3 MEGA PARK, BELLVILLE PORTFOLIO OVERVIEW AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 9
Slide 10: Portfolio Snapshot
03. Portfolio Overview | PORTFOLIO SNAPSHOT ASSETS LEASING ASSET MANAGEMENT DEVELOPMENT 39 7.27% 4.18% 39 000m² Number of assets Average in-force escalation FY2025 rental reversion Industrial pipeline R5.53bn 97% 93 959m² 8 000m² Portfolio value Occupancy Renewals and new lets Retail pipeline conclu
Slide 11: Sectoral Performance – FY2025
03. Portfolio Overview | SECTORAL PERFORMANCE – FY2025 Operating environment remains tough amid macroeconomic headwinds RETAIL COMMERCIAL INDUSTRIAL 55 560m2 GLA 127 548m2 GLA 304 310m2 GLA Occupancy = 96.05% (FY2024: 95.54%) Occupancy = 92.99% (FY2024: 84.37%) Occupancy = 98.85% (FY2024: 97.03%) Co
Slide 12: General Business and Portfolio Update
03. Portfolio Overview | GENERAL BUSINESS A N D P O R T F O L I O U P D AT E Operating environments remain challenging but with signs of improvement GNU has been good for business all round The core portfolio is trading well with key operational milestones being achieved Ongoing implementation of so
Slide 13: Sectoral Split by Value, Revenue & GLA
03. Portfolio Overview | S E C T O R A L S P L I T B Y VA L U E , R E V E N U E & G L A 63% Commercial Industrial Retail Renewable Energy Development Land AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 13
Slide 14: Sectoral Split by Sector - Industrial
03. Portfolio Overview | SECTORAL SPLIT BY SECTOR - INDUSTRIAL 7% E AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 14
Slide 15: Sectoral Split by Sector - Commercial
03. Portfolio Overview | SECTORAL SPLIT BY SECTOR - COMMERCIAL 12% Cape Town CBD Tygervalley Parow Century City Woodstock Paarden Eiland Epping Brooklyn Newlands Renewable Energy AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 15
Slide 16: Sectoral Split by Sector - Retail
03. Portfolio Overview | S E C T O R A L S P L I T B Y S E C T O R - R E TA I L 55 560m2 Convenience Retail Destination Retail Medical Retail Renewable Energy AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 16
Slide 17: Letting Activity YTD FY2025
03. Portfolio Overview | LETTING ACTIVITY YTD FY2025 Expiries and Gross rental Average gross Renewals/ Gross new Average gross Average rental cancellations at expiry expiry rental New lets rental new rental reversion GLA m² R'000 R/m² GLAm² R'000 R/m² % Commercial 36 907 6 020 163.11 41 9721 6 629 1
Slide 18: Tenant and Vacancy Profile
Analysis of the property portfolio in respect 03. Portfolio Overview | of tenant profiles T E N A N T A N D VA C A N C Y P R O F I L E Analysis of the property portfolio as at 526 487 418m 2 472 783m 2 Number of 28 February 2025 GLA OCCUPIED tenants GLA: 487 418m 2 Large national and international B
Slide 19: Lease Expiry Profile Based on GLA
03. Portfolio Overview | L E A S E E X P I RY P R O F I L E B A S E D O N G L A Total Total Total Total Total Total Total 3% 2% 17% 25% 17% 8% 29% 100% 90% 80% 70% 60% 50% 40% 30% 20% 19% 10% Average 0% Vacant Monthly Expiries Expiries Expiries Expiries Expiries 03/2025 - 03/2026 03/2026 - 02/2027 0
Slide 20: FY2025 Financial Performance
4 BLACKHEATH WAREHOUSE, BLACKHEATH FY2025 FINANCIAL PERFORMANCE AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 20
Slide 21: Consolidated Statement of Comprehensive Income
Variance Like-for-like (excluding variance 04. FY2025 Financial Performance | Group smoothing) % (excl. smoothing) % C O N S O L I D AT E D S TAT E M E N T O F February 2025 R’000 February 2024 R’000 COMPREHENSIVE INCOME Property revenue – Contractual rental income 498 529 440 424 13.19 9.33 for the
Slide 22: Reconciliation between Earnings and Distributable Income
04. FY2025 Financial Performance | SA REIT funds from operations (SA REIT FFO) per share R E C O N C I L I AT I O N B E T W E E N February 2025 February 2024 E A R N I N G S A N D D I S T R I B U TA B L E Distributable income per share R’000 R’000 EARNINGS Profit or loss per IFRS Statement of Compre
Slide 23: Reconciliation between Earnings and Distributable Income (continued)
04. FY2025 Financial Performance | R E C O N C I L I AT I O N B E T W E E N E A R N I N G S A N D D I S T R I B U TA B L E EARNINGS for the year ended 28 February 2025 Reconciliation of FFO to distributable company FFO SA REIT funds from operations (SA REIT FFO) per share (continued) February 2025 F
Slide 24: Consolidated Statement of Financial Position
04. FY2025 Financial Performance | Group C O N S O L I D AT E D S TAT E M E N T O F ASSETS February 2025 R’000 February 2024 R’000 FINANCIAL POSITION Investment property (including straight-line accrual) Property, plant and equipment 5 432 267 333 4 180 066 500 as at 28 February 2025 Deferred taxati
Slide 25: TNAV Bridge and LTV Sensitivity
04. FY2025 Financial Performance | T N AV B R I D G E A N D LT V S E N S I T I V I T Y TNAV BRIDGE Profit for the year (excl. FY2025 Fair value adjustment Acquisition of IFRS 2 expense for fair value adjustment) and impairments 14 Treasury shares future CSP R0.77 R0.86 R0.08 R12.20 R11.78 R0.05 R11.
Slide 26: Funding Maturity
04. FY2025 Financial Performance | F U N D I N G M AT U R I T Y 27.09% FUNDERS AVERAGE 9.08% COST OF Group net debt profile as at 28 February 2025 LOAN-TO-VALUE FUNDING 40 bps 7% FY2028 29%* 12% FY2026 FY2029 22%# TOTAL FY2026 FIXED Fixed Variable VARIABLE 58% NET DEBT DEBT EXPIRY debt debt DEBT EXP
Slide 27: Balance Sheet and Funding Update
04. FY2025 Financial Performance | B A L A N C E S H E E T A N D F U N D I N G U P D AT E FY2025 FY2024 FEBRUARY COVENANTS WEIGHTED AVERAGE 25.97 24.67 2025 EXPIRY months months WEIGHTED AVERAGE 20.01 20.39 LTV 50% 27.09% FIXED EXPIRY months months WEIGHTED AVERAGE 9.08% 9.48% COST OF DEBT WEIGHTED
Slide 28: Financial Highlights
04. FY2025 Financial Performance| FINANCIAL HIGHLIGHTS DISTRIBUTIONS COLLECTIONS PROPERTY O P E R AT I N G GROUP DEBT & CASH VA L U AT I O N S 85.55 cents 98.59% 9.05% 3.34 times 27.09% FY2025 DIPS FY2025 collections FY2025 average exit Interest cover ratio (ICR) LTV (FY2024: 82.99 DIPS) capitalisat
Slide 29: Sustainability Update
5 78 ON EDWARD, BELLVILLE NO. 2 ESTUARIES, CENTURY CITY SABLE SQUARE, MILNERTON VIKING PARK, EPPING MANHATTAN PLAZA, TYGERVALLEY NORTHGATE PARK, 26 MARINE DRIVE, 7 HEWITT AVENUE, BROOKLYN PAARDEN EILAND EPPING THE ISLAND, PAARDEN EILAND RADNOR ROAD, NO. 1 WATERHOUSE, BELLVILLE CENTURY CITY SUSTAINAB
Slide 30: Summary of Solar PV
05. Sustainability Update | Self-funded Financed 6 10 S U M M A RY O F S O L A R P V Roof rental Future capex 25 5 30% 4 % OF PORTFOLIO ASSETS WITH SOLAR PRODUCTION (KWH) Average TOTAL KWP OF SOLAR INSTALLED NUMBER OF PROPERTIES WITH SOLAR TOTAL FUTURE: 25 TOTAL: 9 403 1 647 total portfolio FY2019 2
Slide 31: Acquisitions, Disposals, Developments and Property Valuations
6 RADNOR ROAD, PAROW ACQUISITIONS, DISPOSALS, DEVELOPMENTS AND PROPERTY VALUATIONS AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 31
Slide 32: Spear Investment Strategy
06. Acquisitions, Disposals, Developments and Property Valuations | S P E A R I N V E S T M E N T S T R AT E G Y 1. 2. ACQUISITIONS NON-CORE DISPOSALS • Exclusively invest in the Western Cape • Industrial and retail bias • Minimum asset size R100 million (unless strategic) • Quality over Quantity •
Slide 33: Acquisitions and Disposals
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIONS AND DISPOSALS PROPERTY ACQUISITIONS GLA PURCHASE VALUE DEBT EFFECTIVE YIELD PROPERTY ACQUISITIONS LOCATION SECTOR (M²) (R'000) (R'000) EQUITY DATE (%) Emira Portfolio Cape Town Various 93 491 1 146 000 573 000 573 000 0
Slide 34: Acquisitive Growth
06. Acquisitions, Disposals, Developments and Property Valuations | ACQUISITIVE GROWTH ACQUISITION VALUE: R182.15 MILLION GLA: SECTOR: YIELD: STATUS: BERG RIVER BUSINESS PARK, PAARL 30 000m2 Industrial 9.35% Transaction agreement signed AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY
Slide 35: Development Growth
06. Acquisitions, Disposals, Developments and Property Valuations | DEVELOPMENT GROWTH INDUSTRIAL PARK: FUTURE PHASE 1 CIVILS DEVELOPMENT GEORGE COMPLETE AIRPORT GTX PARK, OWNERSHIP DEVELOPABLE SECTOR: DEVELOPMENT TARGET STATUS: STAKE: GLA: Industrial - Warehousing, COST: YIELD: Bulk infrastructure
Slide 36: Development Growth (Existing Portfolio)
06. Acquisitions, Disposals, Developments and Property Valuations | DEVELOPMENT GROWTH (EXISTING PORTFOLIO) ESTIMATED DEVELOPMENT COST: R66.5 MILLION LEASE PERIOD: GLA: SECTOR: TARGET YIELD: STATUS: BRAVO PARK EXTENSION, RANGE TBA 7 000m2 Industrial 10% Planning phase ROAD, BLACKHEATH AUDITED CONSOL
Slide 37: Development Growth
06. Acquisitions, Disposals, Developments and Property Valuations | DEVELOPMENT GROWTH GLA TO BE SECTOR: ESTIMATED TARGET YIELD: STATUS: THE ANCHORIDGE, MARINE DEVELOPED: Mixed-use DEVELOPMENT 10% on income- Commencement DRIVE, PAARDEN EILAND 52 000m2 COST: producing assets TBA R1.6bn AUDITED CONSOL
Slide 38: Property Valuations
06. Acquisitions, Disposals, Developments and Property Valuations | P R O P E R T Y VA L U AT I O N S VALUATION SUMMARY AND ASSUMPTIONS February February 2025 2024 Valuation excluding land (R'000) 4 570 974 Number of properties 39 29 % of portfolio valued externally (%) 69 65 Valuation rate (R/m²) I
Slide 39: Outlook and Guidance
7 RADNOR ROAD, BELLVILLE OUTLOOK AND GUIDANCE AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 39
Slide 40: Outlook FY2026
07. Outlook and Guidance | OUTLOOK FY2026 The Western Cape is not just a region, it's Africa’s frontier of innovation, stability, and opportunity. With a globally competitive economy, exceptional governance, and world-class infrastructure, it offers investors the ideal mix of growth potential and ri
Slide 41: FY2026 Strategic Priorities
07. Outlook and Guidance | F Y 2 0 2 6 S T R AT E G I C P R I O R I T I E S Portfolio growth and optimisation: Maintain income continuity and acquire yield-enhancing assets in the Western Cape in line with Spear’s investment strategy Prudent capital management: Maintain disciplined capital allocatio
Slide 42: FY2026 Guidance
07. Outlook and Guidance | FY2026 GUIDANCE Spear remains committed to its Western Cape-focused strategy, leveraging deep regional expertise and an active hands-on management approach to seize portfolio and earnings- enhancing opportunities. Based on Spear’s strategy-driven operational and financial
Slide 43: Thank You
THANK YOU Questions? Email questions to INFO@SPEARPROP.CO.ZA Live Q&A after presentation spearreitlimited Spear REIT Limited Spear REIT Limited @SpearREIT BRAVO PARK, BLACKHEATH AUDITED CONSOLIDATED FINANCIAL RESULTS / YEAR ENDED 28 FEBRUARY 2025 43