Growthpoint Properties Limited · JSE:GRT
Growthpoint Properties — FY2017 Earnings Presentation
92 slides from Growthpoint Properties's earnings presentation, September 2017
Slide 1: Annual Results Presentation for the Year Ended 30 June 2017
ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2017
Slide 2: Agenda
AGENDA 01 Milestones & Highlights 02 Financial Results 03 Capital Management South Africa V&A Waterfront 04 Portfolio Update GOZ 05 Property Investment & Development Globalworth 06 Conclusion 07 Annexures Oxford Corner, Rosebank 2
Slide 3: Milestones & Highlights
MILESTONES & HIGHLIGHTS M1 Place, Eastgate, Sandton
Slide 4: Milestones: V&A Waterfront South Africa
▪ Good progress implementing strategic initiatives, including Internationalisation, Funds Management and Trading and Development MILESTONES V&A Waterfront South Africa ▪ Completion of Silo ▪ Gross monthly billings in excess of R1bn Precinct scheduled for ▪ Sale of Harrowdene to Huawei for R846m Sept
Slide 5: Milestones: Australia, Eastern Europe, Funds Management
Australia ▪ Successful acquisition of AUD440.3m GPT Metro Office Fund (GMF) ▪ Significant portfolio reweighting through AUD480m office asset purchases and AUD166m strategic industrial asset sales: - Office 66% vs. 56% at FY16 - Geographically to New South Wales 26% from 20% at FY16 Eastern Europe Fu
Slide 6: Delivering on our strategic initiatives
Open JV (50/50) ▪ Strategic venture aligning ourselves with the co-working, flexible office trend ▪ Anticipated rollout of 8 locations in 3 years, with 138 West Street Sandton just opened ▪ Open will operate the sites and GRT will provide the funding ▪ Incubator for thriving businesses and tomorrows
Slide 7: Performance Highlights
195.8 cents ▪ 6.5% growth in total FY17 dividend per share PERFORMANCE ▪ Final dividend of 100.8c up 6.9% compared to FY16 final dividend of 94.3c HIGHLIGHTS R5.6bn R122.3bn ▪ Total distributable income ▪ Group property assets ▪ 10.4% growth FY16 to FY17 7
Slide 8: Group LTV, arrears and vacancies
27.1% 35.0% Group LTV ▪ RSA total expense ▪ Gearing remains below 40% to income ratio ▪ Increased from 33.7% at FY16 ▪ Expenses under control Total RSA arrears – R60.4m Vacancies – 4.4% ▪ Well contained ▪ RSA vacancies improved from ▪ 6.5% of collectables 5.7% at FY16 ▪ R13.2m bad debt write ▪ Stron
Slide 9: Company Highlights and Investment Proposition
▪ Largest South African primary listed REIT ▪ 21st largest company in the FTSE/JSE Top 40 Index ▪ Gross market capitalisation R70.7bn COMPANY ▪ Liquid and tradeable: HIGHLIGHTS - R3.8bn average value of shares traded per month ▪ 8th year inclusion in FTSE/JSE Responsible Index ▪ 1st year inclusion i
Slide 10: Growth in Dividend per Share
GROWTH IN DIVIDEND PER SHARE (cents) 8.3% 7.5% 6.0% 6.5% Growth 195.8 6.5% 183.8 173.4 161.3 149.0 44.5 100.8 94.3 82.8 76.3 44.5 84.4 89.5 95.0 72.7 78.5 FY 13 FY 14 FY 15 FY 16 FY 17 Interim dividend Special dividend Final dividend The Place, Sandhurst, Sandton 10
Slide 11: Growth in Tangible Assets and Market Capitalisation
GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION Rbn cents 135 33 000 000 120 2 510c 2 2 500 500 2 448c 105 90 22 000 000 75 11 500 500 60 45 11 000 000 30 500 500 15 0 0 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share (cents) 11
Slide 12: Long Bond Yield vs. GRT Forward Yield
LONG BOND YIELD VS. GRT FORWARD YIELD Long Bond GRT Forward Yield 11% 10% 9% 8.80% 8% 8.18% 7% 6% 5% 4%2012/01/12 2012/07/12 2013/01/12 2013/07/12 2014/01/12 2014/07/12 2015/01/12 2015/07/12 2016/01/12 2016/07/12 2017/01/12 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2011 2011 2012 2012 2013
Slide 13: Financial Results
FINANCIAL RESULTS Waterway House, V&A Waterfront
Slide 14: Consolidated Distribution Calculation
CONSOLIDATED DISTRIBUTION CALCULATION FY17 FY16 INCREASE/ Rm Rm (DECREASE) Gross property income 10 716 9 764 9.8% RSA(1) 8 079 7 589 6.5% GOZ 2 637 2 175 21.2% Property expenses (2 245) (2 126) 5.6% RSA (1 901) (1 864) 2.0% GOZ (344) (262) 31.3% Net property income 8 471 7 638 10.9% Other operating
Slide 15: Income Statement: Distributable income growth of 10.4%
Distributable income growth of 10.4% ▪ Steady contribution from South Africa ▪ First inclusion of Trading Profit and Development Fee income INCOME ▪ Solid contribution from the V&A, growth has slowed down as the STATEMENT base has grown ▪ Stable contribution from GOZ due to additional investment of
Slide 16: Expenses remain under control
Expenses remain under control ▪ SA property expenses under control ▪ Operating expenses increased as a result of less development fees earned in the current period and the reallocation of expenses ▪ V&A Waterfront and GOZ expense ratios up slightly due to increased office weightings Property Operati
Slide 17: Consolidated Balance Sheet (Extracts)
CONSOLIDATED BALANCE SHEET (EXTRACTS) FY17 FY16 INCREASE/ Rm Rm (DECREASE) Property portfolio(1) 109 442 104 690 4.5% RSA 76 906 73 752 4.3% GOZ(2) 32 536 30 938 5.2% 50% Investment in V&A Waterfront 7 110 6 616 7.5% 26.9% Investment in Globalworth 2 769 - 100% Other property-related investments 226
Slide 18: Balance Sheet
▪ 4.5% or R4.7bn increase in property values (RSA and GOZ) ▪ R5bn for the acquisition of GMF in GOZ BALANCE ▪ R1.5bn of assets acquired for the Healthcare Fund SHEET ▪ 18.8% increase in borrowings in RSA which ▪ NAV up 1.7% to was used to fund the GWI acquisition, 2 518 cents per acquisition of asse
Slide 19: Contribution to Distributable Income
CONTRIBUTION TO DISTRIBUTABLE INCOME R5 072m R5 600m Growth 10.4% 78 1.4% 91 1.6% R4 232m 22 0.4% 15.4% 865 772 15.2% 479 8.6% 345 8.2% 429 8.5% 658 15.5% 368 8.7% 3 849 75.9% 4 087 73.0% 2 861 67.6% FY15 FY16 FY17 RSA V&A Waterfront GOZ Trading & Development Listed Investments (1) Anslow, Bryanston
Slide 20: Capital Management
CAPITAL MANAGEMENT 1 Charles Street, Paramatta, NSW, Australia
Slide 21: RSA Capital Management
Total debt R29.3bn ▪ Unsecured debt increased by R4.5bn, of which R3.5bn is corporate bonds RSA ▪ 17 new bond issues, publicly and privately placed, listed and CAPITAL unlisted, at margins between 140 to 185 basis points with terms MANAGEMENT of 3 to 7 years ▪ Demand in bond market exacerbated by de
Slide 22: Cross currency swaps and credit rating
AUD & EUR cross currency Credit rating interest rate swaps (CCIRS) ▪ Our rating is capped at the sovereign rating due to our ▪ Total AUD700m representing 76% of operational concentration in SA historical cost and 52% of market value of GOZ ▪ Moody’s National Scale rating AAA.za & Global Scale rating
Slide 23: Exchange rate risk and RSA facilities
Exchange rate risk ▪ ZAR has been relatively strong to the AUD and EUR for the majority of FY17 ▪ Only 29% of GOZ dividends were hedged for FY18 at 30 June 2017, subsequently taken advantage of the ZAR weakness and 64% now hedged RSA facilities FY17 FY16 Unutilised committed facilities (Rbn) 4.5 5.9
Slide 24: Portfolio Update
PORTFOLIO UPDATE Discovery, Sandhurst, Sandton
Slide 25: Consolidated Net Property Income Overview
CONSOLIDATED NET PROPERTY INCOME OVERVIEW NET PROPERTY INCOME (1) 26.3% V&A GWI Waterfront 1.0% 5.7% Offshore GOZ 25.3% 68.0% RSA Greenfield Industrial Park, Cape Town 1. Includes 100% of RSA, 100% of GOZ, 50%of the V&A Waterfront and 26.9% of GWI. 25
Slide 26: Consolidated Portfolio Value Overview
CONSOLIDATED PORTFOLIO VALUE OVERVIEW 30.0% PROPERTY PORTFOLIO (by value) (1) V&A GWI Waterfront 7.1% 3.4% Offshore GOZ 26.6% 62.9% RSA Eastgate, Sandton 1. Includes 100% of RSA, 100% of GOZ, 50%of the V&A Waterfront and 26.9% of GWI. 26
Slide 27: Portfolio Update: South Africa
PORTFOLIO UPDATE SOUTH AFRICA Key West, Krugersdorp
Slide 28: Retail: South Africa
Retail ▪ NPI still showing growth based on the successful renewal of existing leases SOUTH AFRICA ▪ Renewal success rates deteriorated and renewal growth remains under pressure, both as a result of new competition, which continues to cannibalise trading densities in a weak macro economic environment
Slide 29: Office
Office ▪ Economic drivers are indicative of a sector under pressure ▪ Supply generally continues to exceed demand with consolidation remaining a key theme ▪ Higher incentives and lower rental levels still the order of the day FY17 to attract and retain tenants Net property income (Rm) 2 813 ▪ Rene
Slide 30: Industrial
Industrial ▪ The industrial asset class has come into its own, it has performed well and is proving to be resilient and in favour, albeit that it is costing us to attract and retain tenants ▪ Users are getting more sophisticated which is creating demand for modern logistics facilities which is feedi
Slide 31: Sustainability focus across all sectors
Sustainability focus across all 3 sectors ▪ Total of 234 kilolitres of water saved in FY17 ▪ 8 338.7 kWp installed solar capacity ▪ Via our innovative Green Leases we have shared more than R40m in utilities cost savings, 50/50 with our clients since August 2013 ▪ Greenovate Awards launched in 2015 w
Slide 32: Net Property Income Analysis
NET PROPERTY INCOME ANALYSIS FY17 FY16(1) INCREASE/ Rm Rm DECREASE Gross property revenue 8 079 7 589 6.5% Retail 3 099 2 953 4.9% Office 3 632 3 362 8.0% Industrial 1 348 1 274 5.8% Property expenses (1 901) (1 864) 2.0% Retail (792) (814) (2.7%) Office (819) (790) 3.7% Industrial (290) (260) 11.5%
Slide 33: Portfolio Update: V&A Waterfront
PORTFOLIO UPDATE V&A WATERFRONT V&A Waterfront, Cape Town
Slide 34: V&A Waterfront Highlights
Highlights Silo & Canal Districts ▪ c. 100 000m² of mixed use space committed and let in V&A Silo District WATERFRONT ▪ P grade office offering includes blue chip tenants such as PwC, EY, Werksmans and British American Tobacco ▪ The Silo Hotel above the museum opened on time ▪ No 3 Silo residential
Slide 35: Property Fundamentals
Property fundamentals ▪ Strong demand for office and retail space continues ▪ Vacancies across sectors remain very low - Office 0.8% - Retail 0.0% FY17 - Residential 8.0% Net property income 522 ▪ Tenants electing to stay at the V&A - growth in tenant Vacancy (%) 0.8 retention from 82.3% FY16 wi
Slide 36: Development Activity
Development activity Silo Precinct ▪ Zeitz MOCAA officially opening 22 September 2017 ▪ 250 room Radisson Red hotel opens in September 2017 Canal Precinct ▪ c. 120 000 m² Canal District development includes: - The Battery Park, 1 200 bay parkade with 3 acres of public green space with expected compl
Slide 37: Portfolio Update: GOZ
PORTFOLIO UPDATE GOZ 5 Murray Rose Ave, Sydney Olympic Park, NSW, Australia
Slide 38: GOZ Shareholder Return and Property Fundamentals
Shareholder Return ▪ A year of growth in assets, profit and shareholder returns GOZ ▪ 4.9% increase in dividend per share to 21.5 cps ▪ 6.3% total shareholder return vs. -5.6% S&P/ASX 300 A-REIT index ▪ 10.3% increase in net tangible asset per share to AUD2.88 Property fundamentals ▪ Further cap rat
Slide 39: GOZ Capital Management and Guidance
Capital management ▪ Gearing reduced to 39.0% from 43.1% at FY16 following strategic asset sales ▪ Good access to funding remains: AUD208m raised in March 2017 via the US Private Placement (USPP) market. The issue was more than 4x oversubscribed with an average interest rate of 5.34% and a tenor of
Slide 40: Portfolio Update: Globalworth
PORTFOLIO UPDATE GLOBALWORTH Globalworth Tower, Bucharest, Romania
Slide 41: GWI Transaction
Transaction ▪ Acquired 24.3m shares for EUR186.4m ▪ Funded by EUR100m loans and EUR86.4m CCIRS GWI ▪ 4.2 years weighted average term of debt ▪ EUR base interest rates are fixed for a weighted average term of 9.9 years ▪ Transaction funded at a weighted average interest rate of 2.62% ▪ Initial acquis
Slide 42: GWI Portfolio Activity
Portfolio Activity ▪ Completed 3 acquisitions - 57 000m² development property for Groupe Renault Romania headquarters - 16 300m² Building C Green Court let to global corporates including General Motors, ABB and Merck - 68 000m² Dacia (Renault Group) Distribution facility ▪ Concluded significant leas
Slide 43: Property Investment & Development
PROPERTY INVESTMENT & DEVELOPMENT Brooklyn Mall, Brooklyn, Pretoria
Slide 44: Property Investment & Development Activity
Acquisitions South Africa R1.9bn PROPERTY INVESTMENT V&A Waterfront (50%) - & DEVELOPMENT GOZ R5.0bn Development & capex Disposals South Africa R2.1bn South Africa R2.0bn V&A Waterfront (50%) R557m V&A Waterfront (50%) R113.0m GOZ R473m GOZ R1.7bn Trading Profits & R91m Development Fees Commitments
Slide 45: Conclusion
CONCLUSION Deloitte, La Lucia Ridge, Durban
Slide 46: Prospects: South Africa and V&A Waterfront
South Africa ▪ Weakening property fundamentals ▪ Economic growth prospects insufficient to repair PROSPECTS lacklustre property fundamentals ▪ Potential debt downgrade ▪ Impact of competition in the retail portfolio ▪ Continued pressure on the office portfolio ▪ Increased cost of retaining tenants a
Slide 47: Prospects: GOZ and GWI
GOZ ▪ Continue to pursue opportunities for growth in the office segment in Sydney and Melbourne as a result of declining vacancies, growing population, significant infrastructure spending and Gross State GDP growth in NSW and Victoria ▪ Deterioration in Western Australia property fundamentals is cre
Slide 48: Dividend Guidance
Dividend guidance ▪ Dividend growth for FY18 should be similar to that achieved for FY17 48
Slide 49: Thank You
THANK YOU Hilltop Industrial Park, Elandsfontein
Slide 50: Annexures
ANNEXURES Growthpoint Industrial Estate, Meadowdale, Germiston
Slide 51: Annexure Contents
ANNEXURE CONTENTS 01 Portfolio overview 09 Fixed interest rate expiry profile RSA 02 Property investment activities 10 Wealth created and distributed to stakeholders 03 Expense to income ratios (IFRS) 11 Shares issued and beneficial shareholders holding > 2% at FY17 04 Expense to income ratios (gros
Slide 52: Annexure Contents
ANNEXURE CONTENTS 17 Developments & capital expenditure RSA 25 V&A Waterfront portfolio overview (50%) 18 Commitments RSA 26 Split of V&A Waterfront property portfolio 19 Non-current assets held for sale RSA 27 Developments & commitments V&A Waterfront (50%) Net property & distributable income analy
Slide 53: Annexure Contents
ANNEXURE CONTENTS 33 Split of GOZ property portfolio 34 Acquisitions & disposals GOZ 35 Developments, commitments & non-current assets held for sale GOZ 36 Net property income analysis GOZ 37 GOZ overview 38 GLA & vacancy reconciliation GOZ 53
Slide 54: Annexure 01: Portfolio Overview
ANNEXURE 01: PORTFOLIO OVERVIEW RETAIL OFFICE INDUSTRIAL RSA TOTAL GOZ (1) (3) V&A (1) Number of properties 56 182 233 471 57 1 GLA (m²) 1 405 021 1 750 606 2 266 957 5 422 584 1 053 148 223 016 Vacancy (m²) 50 246 119 334 70 954 240 534 7 888 1 734 Vacancy (%) 3.6 6.8 3.1 4.4 1.3 0.8 Valuation (Rm)
Slide 55: Annexure 02: Property Investment Activities
ANNEXURE 02: PROPERTY INVESTMENT ACTIVITIES RETAIL OFFICE INDUSTRIAL RSA TOTAL GOZ(1) TOTAL V&A(1) ANNEXURES Rm Rm Rm Rm Rm Rm Rm Opening balance – 1 July 2016(²) 29 210 32 655 11 887 73 752 30 938 104 690 7 766 Purchase price of acquisitions 15,34 - 1 756 116 1 872 5 047 6 919 - Selling price of di
Slide 56: Annexure 03: Expense to Income Ratios (IFRS)
ANNEXURE 03: EXPENSE TO INCOME RATIOS (IFRS) SOUTH AFRICA V&A WATERFRONT GOZ 27.8% 27.2% 27.1% 30.7% 30.8% 31.4% 16.0% 16.8% 17.8% 2.9% 3.1% 3.3% 3.8% 2.7% 3.6% 4.8% 27.8% 27.7% 28.1% 4.4% 4.8% 24.0% 24.5% 23.5% 11.6% 12.0% 13.0% FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Operating Expense Ratio P
Slide 57: Annexure 04: Expense to Income Ratios (Gross)
ANNEXURE 04: EXPENSE TO INCOME RATIOS (GROSS)* SOUTH AFRICA V&A WATERFRONT GOZ 38.2% 38.5% 38.0% 35.9% 36.9% 38.5% 16.9% 17.7% 18.7% 3.2% 2.3% 3.0% 3.0% 2.9% 2.7% 35.0% 36.2% 35.0% 35.6% 33.2% 34.0% 4.8% 4.3% 4.7% 12.6% 13.0% 13.9% FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Operating Expense Ratio
Slide 58: Annexure 05: RSA Diversified Borrowings
ANNEXURE 05: RSA DIVERSIFIED BORROWINGS — NOMINAL VALUE R25 444m R24 653m R29 288m 400 Debt capital 400 market Debt capital 400 6 824 Debt capital 24.7% Unsecured market 12.0% 2 659 Unsecured market 42.6% 14.9% 3 284 Unsecured 29.6% 32.3% 4 480 4 286 5 248 2 053 1 803 1 540 Traditional Traditional b
Slide 59: Annexure 06: Loan to Value and Interest Cover Ratios
ANNEXURE 06: LOAN TO VALUE AND INTEREST COVER RATIOS SOUTH AFRICA GOZ(2) GROUP 7 7 40% 7 40% 42.0% 40% 6 39.4% 6 6 36.8% 33.7% 35.0% 30% 33.2% 5 30% 5 5 30% 32.1% 33.4% 30.5% 4 4 4 20% 20% 20% 3 3 3 2 2 2 10% 10% 10% 3.4x 3.2x 3.4x 1 3.7x 3.8x 3.9x 1 3.4x 3.3x 3.5x 1 0% 0 0% 0 0% 0 FY15 FY16 FY17 FY
Slide 60: Annexure 07: Loan Exposure per Financier RSA
ANNEXURE 07: LOAN EXPOSURE PER FINANCIER RSA China Construction Bank JSE (Corporate Bonds) ABSA 1% 25% Investec 2% 2% LibFin 5% OMSFIN 5% 22% Nedbank Standard Bank 17% RMB 21% 60
Slide 61: Annexure 08: Debt Expiry Profile per Financier RSA
ANNEXURE 08: DEBT EXPIRY PROFILE PER FINANCIER RSA 15% 18% 23% 16% 16% 3% 9% 25% 20% 15% 10% 5% 0% FY18 FY19 FY20 FY21 FY22 FY23 FY24 ABSA China Construction Investec JSE (Corporate Bonds) LibFin Nedbank Omsfin RMB Standard Bank 61
Slide 62: Annexure 09: Fixed Interest Rate Expiry Profile RSA
ANNEXURE 09: FIXED INTEREST RATE EXPIRY PROFILE RSA 14% 9% 9% 11% 21% 17% 3% 6% 3% 0% 2% 2% 3% 25% 20% 15% 10% 5% 0% Floating FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 62
Slide 63: Annexure 10: Wealth Created & Distributed to Stakeholders
ANNEXURE 10: WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS* Rm R8 060m R10 216m R10 842m 12 000 164 1.5% 10 500 418 4.1% 1 016 9.4% 941 9.2% 9 000 74 0.9% 2 922 27.0% 7 500 747 9.3% 2 710 26.5% 471 4.3% 6 000 2 215 27.5% 4.4% 450 329 4.1% 4 500 5 600 51.6% 3 000 5 072 49.7% 4 232 52.5% 1 500 463 5.7%
Slide 64: Annexure 11: Shares Issued & Beneficial Shareholders
ANNEXURE 11: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY17 SHARES % HOLDING SHARES HELD Opening balance 1 July 2016 2 786 093 366 Government Employees Pension Fund 13.3 384 361 494 Dividend reinvestment (September 2016) 44 023 040 Stanlib Asset Management Ltd 6.1 176 177 821 Southern P
Slide 65: Annexure 12: Key Performance Indicators RSA
ANNEXURE 12: KEY PERFORMANCE INDICATORS RSA FY17 FY16 Vacancies (%) 4.4 5.7 Total arrears (Rm) 60.4 64.3 Provision for bad debts (B/S) (Rm) 26.1 29.8 Bad debts (I/S) (Rm) 13.2 15.9 Average in force escalations (%) 7.8 7.8 Renewal success rate (%) 73.6 68.7 Total letting success rate (%) 85.3 82.4 We
Slide 66: Annexure 13: Portfolio Overview RSA (excl. V&A)
ANNEXURE 13: PORTFOLIO OVERVIEW RSA (EXCL.V&A) NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE R4 479m R5 725m R6 178m 471 467 471 R71 550m R73 752m R76 906m 17.2% 16.4% 16.6% 14.6% 15.3% 48.6% 48.6% 49.5% 19.9% 46.0% 45.5% 45.1% 45.2% 46.0% 47.3% 39.1% 39.0% 38.6% 37.4% 37.3% 39.4
Slide 67: Annexure 14: Split of RSA Property Portfolio
ANNEXURE 14: SPLIT OF RSA PROPERTY PORTFOLIO VALUE GLA VALUE GLA 2% 1% 1% 1% 3% 4% 5% 16% 7% 32% 11% 42% 10% 45% 54% 58% 21% 39% 22% 26% Greater JHB Western Cape Kwazulu-Natal Office Retail Industrial Pretoria Eastern Cape North West Other 67
Slide 68: Annexure 15: Acquisitions RSA
ANNEXURE 15: ACQUISITIONS RSA PURCHASE PRICE SECTOR DATE Rm YIELD Acquisitions Gateway Private Hospital, Umhlanga Ridge, Durban Healthcare Fund(1) November 2016 559.2 9.5% Hillcrest Private Hospital, Assagay, Durban Healthcare Fund(1) November 2016 550.4 9.5% Louis Leipoldt Hospital, Bellville, Cape
Slide 69: Annexure 16: Disposals RSA
ANNEXURE 16: DISPOSALS RSA PROFIT/(LOSS) PROFIT/(LOSS) SELLING PRICE ON COST ON BOOK VALUE SECTOR DATE Rm Rm Rm YIELD Disposals Picbel Parkade, CBD, Cape Town Retail March 2017 271.3 160.4 (0.4) 10.1% Vaal Mall - 11.19%, Vanderbijlpark Retail April 2017 197.6 (1.0) (0.5) 7.4% Grayston Shopping Centr
Slide 70: Annexure 17: Developments & Capital Expenditure RSA
ANNEXURE 17: DEVELOPMENTS & CAPITAL EXPENDITURE RSA ESTIMATED COMPLETION FY17 SECTOR DATE Rm Developments and Capital Expenditure(1) Greenacres, Greenacres, Port Elizabeth Retail July 2017 140.5 Vaal Mall (66.6%), Vanderbijlpark, Johannesburg Retail December 2016 90.0 Hillcrest Corner (50%), Hillcre
Slide 71: Annexure 18: Commitments RSA
ANNEXURE 18: COMMITMENTS RSA ESTIMATED FY17 Commitments SECTOR COMPLETION DATE Rm Developments(1) 2 051.0 River Square Shopping Centre, Three Rivers, Vereeniging Retail November 2017 46.9 144 Oxford Road, Rosebank Office October 2019 647.1 Exxaro Head Office and AECOM, Centurion Office May 2019 488.
Slide 72: Annexure 19: Non-Current Assets Held for Sale RSA
ANNEXURE 19: NON-CURRENT ASSETS HELD FOR SALE RSA FY17 SECTOR Rm Properties Held For Sale OK Empangeni, Empangeni, Durban Retail 172.5 Whitworth, Heriotdale ext 8, Johannesburg Industrial 16.0 Greenhills Centre, Elandsfontein, Germiston Industrial 13.4 Total RSA 201.9 72
Slide 73: Annexure 20: Retail Overview RSA
ANNEXURE 20: RETAIL OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria 2 247 55 968 Edcon Holdings Ltd 124 097 Festival Mall, Kempton Park, Johannesburg 1 610 83 387 The Foschini Group Ltd 57 321 Geenacres,
Slide 74: Annexure 21: Office Overview RSA
ANNEXURE 21: OFFICE OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Investec, 100 Grayston Drive, Sandton, Johannesburg 2 204 70 945 Investec Bank Ltd 83 781 The Woodlands, Woodmead, Johannesburg 1 707 124 122 Deloitte (South Africa) 46 145 Constantia Office Par
Slide 75: Annexure 22: Industrial Overview RSA
ANNEXURE 22: INDUSTRIAL OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Growthpoint Business Park, Midrand 644 68 685 The Bidvest Group Ltd 58 590 Montague Business Park (25%), Montague Gardens, Cape Town 345 30 885 Adcock Ingram Holdings Ltd 27 280 Hilltop Indu
Slide 76: Annexure 23: GLA & Vacancy Reconciliation RSA
ANNEXURE 23: GLA & VACANCY RECONCILIATION RSA TOTAL GLA VACANT AREA VACANCY m² m² % Balance as at 1 July 2016 5 471 050 311 559 5.7 GLA adjustments (61 235) (59 776) Disposals (109 364) (2 111) Acquisitions 80 387 495 Developments and extensions 44 168 42 294 Leases expired in the period (1) 1 173 9
Slide 77: Annexure 24: Key Performance Indicators V&A Waterfront
ANNEXURE 24: KEY PERFORMANCE INDICATORS V&A WATERFRONT (50%) FY17 FY16 Vacancies (%) 0.8 1.4 Total arrears (Rm) 35.5 28.1 Provision for bad debts (B/S) (Rm) 5.6 8.6 Bad debts (I/S) (Rm) 2.7 1.4 Average in force escalations (%) 8.0 8.0 Renewal success rate (%) 98.2 82.3 Total letting success rate (%)
Slide 78: Annexure 25: V&A Waterfront Portfolio Overview
ANNEXURE 25: V&A WATERFRONT PORTFOLIO OVERVIEW (50%) NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE R399m R462m R522m R6 761m R7 766m R8 705m 5.7% 19.0% 6.4% 12.5% 18.4% 9.6% 11.4% 6.8% 7.5% 17.6% 8.9% 5.8% 11.6% 9.5% 21.8% 24.5% 6.1% 18.6% 23.8% 21.6% 20.9% 49.6% 54.1% 52.6% 50.5% 51.3% 53.9% FY15 FY
Slide 79: Annexure 26: Split of V&A Waterfront Property Portfolio
ANNEXURE 26: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO PROPERTY PORTFOLIO PROPERTY PORTFOLIO NET PROPERTY DEVELOPED VS. BY VALUE BY GLA INCOME UNDEVELOPED BY VALUE 6% 6% 22% 19% 12% 24% 7% 9% 51% 50% 26% 28% 24% 22% 94% Retail Office Fishing & Industrial Hotel & Residential Bulk Developed Undevelop
Slide 80: Annexure 27: Developments & Commitments V&A Waterfront
ANNEXURE 27: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%) ESTIMATED COMPLETION FY17 SECTOR DATE Rm Developments and capital expenditure (1) Waterway House (EY & Ferrari) Office & Retail May 2017 159.6 Grain Silo - Zeitz MOCAA and The Silo Hotel Museum & Hotel September 2017 84.6 Battery Park Park
Slide 81: Annexure 28: Net Property & Distributable Income Analysis V&A
ANNEXURE 28: NET PROPERTY & DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%) FY17 FY16 INCREASE/ Rm Rm (DECREASE) Gross property revenue 726 639 13.6% Property expenses (204) (177) 15.3% Net property income 522 462 13.0% Other operating expenses (24) (20) 20.0% Net finance costs (18) (11) 63.6% Ot
Slide 82: Annexure 29: V&A Waterfront Overview
ANNEXURE 29: V&A WATERFRONT OVERVIEW GLA(1) LEASE EXPIRY (% OF GLA) TOP 10 TENANTS (100%) m² Vacant 0 Allan Gray (Pty) Ltd 18 520 By FY18 13 Nedbank Group Ltd 25 432 By FY19 10 Legacy Hotels 16 226 By FY20 8 Edcon Holdings Ltd 7 518 By FY21 5 Tourvest Holdings Ltd 3 052 By FY22 11 FY23 and beyond 53
Slide 83: Annexure 30: GLA & Vacancy Reconciliation V&A Waterfront
ANNEXURE 30: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%) TOTAL GLA VACANT AREA VACANCY m2 m2 % Balance as at 1 July 2016 206 838 2 993 1.4% GLA adjustments - - Developments and extensions 16 178 15 701 Leases expired in the period (1) 81 187 Renewals of expired leases (2) (79 735) New letting
Slide 84: Annexure 31: Key Performance Indicators GOZ
ANNEXURE 31: KEY PERFORMANCE INDICATORS GOZ FY17 FY16 Vacancies (%) (1) 1.3 1.0 Total arrears (Rm) 3.4 4.7 Provision for bad debts (B/S) (Rm) - - Renewal success rate (%) 81.4 96.0 Total letting success rate (%) 85.2 93.3 Weighted average renewal growth (%) (7.7) (0.5) Weighted average future escala
Slide 85: Annexure 32: GOZ Portfolio Overview
ANNEXURE 32: GOZ PORTFOLIO OVERVIEW NUMBER OF PROPERTIES NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE NUMBER OF PROPERTIES R1 631m R1 913m R2 293m R22 024m R30 938m R32 536m 53 58 57 AUD ZAR AUD ZAR 25 00 .00 10.8 350 00.0 0 11.5 10.57 10.6 11.04 300 00.0 0 11 20 00 .00 38.7% 10.4 34.0% 10.26 250 00
Slide 86: Annexure 33: Split of GOZ Property Portfolio
ANNEXURE 33: SPLIT OF GOZ PROPERTY PORTFOLIO VALUE (AUD) GLA VALUE GLA 1% 1% 5% 2% 5% 8% 28% 6% 29% 34% 12% 45% 26% 14% 66% 72% 28% 18% Victoria Queensland New South Wales South Australia Office Industrial ACT Western Australia Tasmania 86
Slide 87: Annexure 34: Acquisitions & Disposals GOZ
ANNEXURE 34: ACQUISITIONS & DISPOSALS GOZ FY17 FY17 SECTOR DATE Rm AUDm Acquisitions 15 Green Square Close, Fortitude Valley, Queensland Office October 2016 1 452.2 138.2 3 Murray Rose Avenue, Sydney Olympic Park, New South Wales Office October 2016 1 042.6 99.1 5 Murray Rose Avenue, Sydney Olympic
Slide 88: Annexure 35: Developments, Commitments & Assets Held for Sale GOZ
ANNEXURE 35: DEVELOPMENTS, COMMITMENTS & NON-CURRENT ASSETS HELD FOR SALE GOZ ESTMATAED FY17 FY17 SECTOR COMPLETION DATE Rm AUDm Developments and Capital Expenditure Building C, 211 Wellington Road, Mulgrave, Victoria Office October 2016 318.0 29.5 Other Various 155.0 17.5 Total 473.0 47.0 Commitmen
Slide 89: Annexure 36: Net Property Income Analysis GOZ
ANNEXURE 36: NET PROPERTY INCOME ANALYSIS GOZ FY17 FY16 Increase / AUDm AUDm (Decrease) Gross property revenue 261.4 208.6 25.3% Property expenses (38.1) (27.5) 38.5% Net property income 223.3 181.1 23.3% Adjustments (65.7) (25.5) Acquisitions and developments (59.5) (12.2) Disposals (6.2) (13.3) Ad
Slide 90: Annexure 37: GOZ Overview
ANNEXURE 37: GOZ OVERVIEW FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² 1 Charles Street, Parramatta, NSW Office 3 046 32 356 Woolworths 350 185 70 Distribution Street, Larapinta, QLD Industrial 2 057 76 109 NSW Police Department 32 356 75 Dorcas Street, South Melbourne, V
Slide 91: Annexure 38: GLA & Vacancy Reconciliation GOZ
ANNEXURE 38: GLA & VACANCY RECONCILIATION GOZ TOTAL GLA VACANCY(1) m2 % Balance as at 1 July 2016 1 109 545 1.0 GLA adjustments (477) Disposals (120 963) Acquisitions, developments and extensions 65 043 Balance as at 30 June 2017 1 053 148 1.3 1. Vacancy ratio is based on income and not GLA (when co
Slide 92: Thank You
THANK YOU Illovo, Umhlanga Ridge, Durban
Growthpoint Properties — FY2017 Earnings Presentation on 6ix