Slide 1: Annual Results for the Year Ended 29 February 2016
ANNUAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2016
Slide 2: Slide 2
Slide 3: Proceedings & Speakers
Proceedings & Speakers Overview Kiriakos Anastasiadis Financial overview Pieter Scholtz Existing portfolio overview Pieter Scholtz Developments - Properties under development - Future opportunities - Other initiatives Kiriakos Anastasiadis Looking ahead Kiriakos Anastasiadis 1
Slide 4: Overview
OVERVIEW 2
Slide 5: General Overview
General Overview Specialist commercial, retail and residential property developer and owner Listed on the JSE on 9 December 2014 with average annual growth target of 20% to 25% over a 3 year period. Capital growth vs REIT Dynamic and highly experienced management team with a proven 18 year track rec
Slide 6: Economic overview: Acsion View
Economic overview: Acsion View 1. Real estate market South Africa Rest of Africa Europe www.acsionsa.co.za 4
Slide 7: Activity Overview
Activity Overview 1. Gearing (Loan to value – SA REIT Association) 2016 2015 4.13% 4.83% 2. Cash spend on development R221m Acsiopolis R67m Mall@Moutsiya (Aug 2016) R13m Mall@Carnival R84m Mall@Reds R6m Mall@Emba R19m Mall@55/Trade55 R15m Mall@Mfula (Nov 2016) R12m Other R5m Spend financed mainly fr
Slide 8: New initiatives: Energy
New initiatives: Energy 1. Renewable Energy installed at Mall@Emba 1MW commissioned October 2015 2. Renewable Energy installations underway 4MW at Mall@Carnival 2MW at Mall@Reds Commissioning from June 2016 to August 2016 Mall@Mfula, Mall@Moutsiya, Mall@Lebo to receive solar installations www.acsion
Slide 9: ACSION at a glance
ACSION at a glance 29 Feb 2016 28 Feb 2015 9 Dec 2014 Total property portfolio R4.617bn R3.755 bn R3.585 bn Net asset value R4 575bn R4 021bn R3 727bn NAV per share (excl. deferred tax) R13.61 R11.56 R10.70 EBITDA R301m R66.7m Operating yield 7.3% 7.4% Headline earnings per share 45.85 41.06 WALE pe
Slide 10: ACSION at a glance
ACSION at a glance NAV uplift NAV uplift Operating Direct exp / Total exp / 29 15mnths 12mnths yield income % income % FEBRUARY 27.2% 21.7% 7.3% p.a. 10.42% 17.24% 2016 (7.4%) (11.08%) (18.11%) 1,600 262.5 - 19.5 5.8 1.5 14.2 2.4 1,361 1,400 Value in cents 1,070 1 NAVPS 9 Dec 2014 1,200 23.7 2 Profi
Slide 11: Group Structure
Group Structure ACSION LIMITED 100% Acsiopolis 100% Anaprop Property Management 100% Hyde Park Terrace 100% Mall@55 & Trade 55 100% Mall@Carnival 100% Mall@Emba 100% Mall@Lebo 100% Mall@Maputo 100% Mall@Moutsiya 100% Mall@Reds 100% Moreleta Square 100% Simarlo Rainbow 55% Mall@Mfula www.acsionsa.co.
Slide 12: Financial Overview
FINANCIAL OVERVIEW 10
Slide 13: Simplified statement of financial position
Simplified statement of financial position 29 Feb 2016 28 Feb 2015 (R’000) (R’000) ASSETS Investment property 4 616 775 3 755 100 Goodwill 625 464 625 464 Prepayments 366 610 409 661 Other assets 47 569 44 556 Total assets 5 656 418 4 834 781 Equity 4 585 833 4 020 749 LIABILITIES Deferred tax 792 8
Slide 14: Financial Position
Financial Position 1. Investment property IAS 40– with different disclosure (R’ 000) Investment property 4 311 971 Plant & equipment 92 325 Operating lease 124 548 NC assets held for sale 87 931 Total 4 616 775 2. 2016 2015 Liquidity 0.44:1 0.52:1 Bond prepayment R162m R147m Adjusted liquidity 2.30:
Slide 15: Simplified statement of profit & loss
Simplified statement of profit & loss 3 months ended 29 Feb 2016 28 Feb 2015 (R’000) (R’000) INCOME 463 968 112 028 Revenue 453 343 107 424 Other income 10 625 4 604 EXPENSES 210 509 56 135 Operating profit 253 459 55 893 Fair value adjustments 633 227 - Sale of non current assets 4 963 - Net financ
Slide 16: Operating and Recoverability Ratios | Portfolio
Operating and Recoverability Ratios | Portfolio 2016 2015 2016 Assessment rates recovery 71.82% 61.24% Repairs & Maintenance, Other, 5.6% 11.2% Security, Electricity recovery 124.58% 127.37% 5.0% Cleaning, 4.0% Refuse recovery 114.47% 84.22% Municipal, 74.2% Sewerage recovery 93.23% 98.12% 2015 Repa
Slide 17: Portfolio Overview
PORTFOLIO OVERVIEW 15
Slide 18: Existing Portfolio | Overview
Existing Portfolio | Overview Valuation Value (Rm) GLA p/m2 % of Existing portfolio Property name (*)Directors (m2) (excl. portfolio enhancements valuation bulk) 2,000 87,721 22,800 49.6 4 MW renewable energy Mall@Carnival(*) Mall@Reds 980 54,342 18,034 24.3 2 MW renewable energy Mall@Emba 486 24,41
Slide 19: Property under development | Overview
Property under development | Overview Valuation (Rm) % of GLA Value p/m2 Existing portfolio Property name (*)Directors develop (m2) (excl. bulk) enhancements valuation ment Mall@Moutsiya 130 15,500 8,300 15.6 Renewable energy Mall@Mfula 170 18,700 9,000 20.5 Renewable energy Mall55/Trade 55(*) 275 2
Slide 20: Key indicators: Legend description
Key- indicators Existing portfolio l Legend description Where ever possible, SA REIT Association Best Practice recommendations are used. Key Description Footfall Average footfall per month over the past 12 months Valuation * Indicative of Director’s valuation Operating yield Operating profit yield a
Slide 21: Mall@Carnival
Feb 2016 2015 GLA 87 721m² 72 338m² WALE 3.8yrs 3.8yrs Footfall 900 000 700 000 Vacancy 6.5% 5.5% Valuation * R2.00 bn R1.56 bn Value/m2 R22 800 R21 082 Cost/m2 R5 419 R5 509 CNR HEIDELBERG & AIRPORT ROADS, DALPARK EXT 5, BRAKPAN Operating yield 6.2% 7.2% WELL-LOCATED REGIONAL MALL ON N17 OPPOSITE C
Slide 22: Mall@Reds
Feb 2016 2015 GLA 54 342m² 53 423m² WALE 4.7yrs 5.3yrs Vacancy 3.3% 6.54% Valuation R980m R820m Value/m2 R18 034 R15 349 Cost/ m2 R6 397 R 6 420 Operating yield 9.0% 8.3% Lease 7.05% 6.95% CNR ROOIHUISKRAAL & HENDRIK VERWOERD DRIVE, escalation ROOIHUISKRAAL EXT 15, CENTURION ESTABLISHED REGIONAL SHO
Slide 23: Mall@Emba
Feb 2016 2015 GLA 24 415m² 24 477m2 WALE 2.6yrs 2.8yrs Footfall 500 000 500 000 Vacancy 1.2% 4.42% Valuation R486m R491m Value/m2 R19 906 R17 118 Cost/m2 R5 663 R4 969 Operating yield 7.3% 7.5% CNR eMBALENHLE AVENUE & OLD PROVINCIAL ROAD, eMBALENHLE, MPUMALANGA Lease ONLY FORMAL RETAIL OFFERING IN I
Slide 24: Mall@Lebo
Feb 2016 2015 GLA 23 510m² 23 964m² WALE 5.8yrs 6.5yrs Footfall 420 000 400 000 Vacancy 0% 1.27% Valuation * R380m R314m Value/m2 R16 163 R13 103 Cost/m2 R6 199 R6 092 CNR R513 & R 579, LEBOWAKGOMO, LIMPOPO ONLY MAJOR FORMAL RETAIL OFFERING WITHIN A 50KM RADIUS Operating yield 9.7% 4.8% CATERING FOR
Slide 25: Moreleta Square
2016 2015 GLA 8 459m² 8 507m2 WALE 4.1yrs 4.6yrs Vacancy 3.3% 0.58% Valuation * R154m R136m Value/m2 R18 205 R15 987 Cost/m2 R2 275 R2 261 Operating yield 8.6% 8.1% CNR GARSFONTEIN & RUBENSTEIN ST, MORELETA PARK, PRETORIA LONG LEASE EXPIRY UNDERPINNED BY NATIONAL TENANT WELL-ESTABLISHED COMMUNITY SH
Slide 26: Simarlo Rainbow
2016 2015 GLA 6 007m² 6 007m2 WALE 2.9yrs 3.7yrs Vacancy 15.2% 8.38% Valuation * R31.8m R32.3m Value/m2 R5 261 R5 377 Cost/m2 R1 352 R1 352 Operating yield 10.9% 11.3% Lease Escalation 8.08% 9.61% CNR JAKARANDA & EDWARD STR, HENNOPSPARK, CENTURION LIGHT INDUSTRIAL/COMMERCIAL PROPERTY CLOSE TO N1 AND
Slide 27: Portfolio Overview: Sector Profile
Portfolio Overview: Sector Profile Geographic profile by Geographic profile by Revenue GLA Limpopo, 9% Limpopo, 11% Mpumulanga, 12% Mpumalanga, 13% Gauteng, 78% Gauteng, 77% www.acsionsa.co.za 25
Slide 28: Portfolio overview: Sector Profile
Portfolio overview: Sector Profile Sector profile by Revenue Sector profile by GLA Light Industrial 1% Light Industrial Retail - rural Retail - rural 3% 23% 23% Retail - metropolitan 76% Retail - metropolitan 74% www.acsionsa.co.za 26
Slide 29: Portfolio overview: Tenant Profile
Portfolio overview: Tenant Profile Tenant profile by Revenue Tenant profile by GLA Line and Other Franchises Line and Other 20% Franchises 16% Semi National 20% National National 60% Semi National 70% 14% www.acsionsa.co.za 27
Slide 30: Portfolio overview: WALE (GLA)
Portfolio overview: WALE(GLA) Lease expiry profile by GLA 29.64% 15.31% 14.98% 13.44% 12.42% 8.61% Feb '17 Feb '18 Feb '19 Feb '20 Feb '21 Beyond Feb '22 www.acsionsa.co.za 28
Slide 31: Portfolio overview: WALE (Rent)
Portfolio overview: WALE (Rent) Lease expiry profile by Rent 21.91% 20.77% 19.15% 15.70% 12.23% 10.23% Feb '17 Feb '18 Feb '19 Feb '20 Feb '21 Beyond Feb '22 www.acsionsa.co.za 29
Slide 32: Developments
DEVELOPMENTS 30
Slide 33: Current Developments
Current Developments Construction start Estimated completion Description Location Sector Current status Total GLA date date Residential, Planning, design parking 55 000m² Acsiopolis Benmore commercial & July 2015 January 2019 & leasing resi/retail 67 000m² retail Planning, leasing Mall@Moutsiya Walk
Slide 34: Acsiopolis and Mall@Moutsiya
ACSIOPOLIS MALL@MOUTSIYA BENMORE, GAUTENG CNR R568 & R573, WALKRAAL, LIMPOPO Total land size of approximately 1 ha in the heart of Sandton’s Highly visible and easily accessible location with direct thoroughfare densely populated, ultra high-income residential Benmore node. onto the Moloto Road, a m
Slide 35: Mall@55 and Trade 55
MALL@55 TRADE 55 CNR R55 & MARAIS ROAD, MONAVONI, GAUTENG CNR R55 & MARAIS ROAD, MONAVONI, GAUTENG Located on an extremely busy arterial route accessible from the Located on an extremely busy arterial route accessible from the N14 N14 freeway and the R55 freeway and the R55 Phase I development to co
Slide 36: Hyde Park Terrace and Mamahlodi Gardens
HYDE PARK TERRACE MAMAHLODI GARDENS 56 ON FIRST ROAD, HYDE PARK, GAUTENG WALKRAAL, LIMPOPO High-end residential development in the heart of one of Sandton’s Total land size of 40 ha most exclusive areas Partnership with local residents and the local municipality to Total land size of 2.5 ha approach
Slide 37: Mall@Mfula
MALL@MFULA CORNER N2 & BRAND STREET, PIET RETIEF, MPUMALANGA Ideally located to cater for primary Piet Retief catchment area as well as secondary catchment areas of Retiefville, Kempville, Harmony Park and Ethandakhukanya, given limited formal retail offerings in these areas Site is ideally located
Slide 38: Future Developments
FUTURE DEVELOPMENTS 36
Slide 39: Future Developments
Future Developments Existing Properties: Mall@Lebo - 8 000m² extension Mall@Reds - 1 000m2 extension - 20 000m² application approval imminent - 7 000m² currently available Mall@Carnival - 5 000m² - 129 000m² bulk available Mall@Emba - 5 000m² extension Mall@55/Trade 55 - 44 500m² bulk available Mall
Slide 40: Mall@Lebo and Mall@Frankfort
MALL@Lebo MALL@FRANKFORT Lebowakgomo, Limpopo FRANKFORT, FREE STATE Tenant demand driven expansion Strategic position in Frankfort Additional 8 000m² to be developed Minimal offering in surrounding area For more detail please refer to Mall@Lebo page Strong demand from tenants Anchor tenant expressed
Slide 41: Future Development Opportunities
Future Development Opportunities Location Description Sector Total GLA Lusaka, Zambia Offices@Lusaka Commercial 20 000m² Maputo, Mall@Maputo Retail 30 000m² Mozambique Rest of Africa Europe www.acsionsa.co.za 39
Slide 42: Mall@Maputo and Offices@Lusaka
MALL@MAPUTO OFFICES@LUSAKA CIRCULAR DE MAPUTO, MAPUTO LUSAKA, ZAMBIA Located in northern Maputo and adjacent to the main Maputo ring road, Strong African economy with limited available infrastructure for with a total land size of 8.9 ha multinational companies Memorandum of Understanding signed to d
Slide 43: Other initiatives
Other initiatives Solar energy supplementation - 4MW- Mall@Carnival - 2MW- Mall@Reds - Mall@Mfula, Mall@Moutsiya, Mall@Lebo to receive solar installations - Considering solar plants as separate projects Purchase of existing properties explored - Locally and abroad - Renovation of existing portfolio
Slide 44: Looking Ahead
’ | 4) ii LOOKING AHE
Slide 45: Looking Ahead
Looking Ahead 1. Completing pipeline in South Africa 2 to 3 years 2. Solar installations on existing developments and as stand alone projects 3. Pursuing potential developments in Africa and Europe 4. Share trading at a discount to NAV - Management aware of liquidity and free float 5. Management to
Slide 46: The Board of Directors
The Board of Directors Kiriakos Anastasiadis Pieter Scholtz Adv. David Green Chief Executive Officer Chief Financial Officer Independent Non-Executive Chairperson | Board Pr Eng, MSc Eng (Structural) CA(SA), M.Com.(Tax) BA,LLB Sonja Griesel Dr David Sekete Thabani Jali Independent Non-Executive Inde
Slide 47: Executive Team
Executive Team Dimitri Thomas Yanni Anastasiadis Dillon Law Director of Subsidiaries | Director of Subsidiaries | Group Financial Manager Project Leasing Developments B.Com (Accounting), B.Com (Hons) BSc Electrical Engineering BSc (Hons) Construction Management (Accounting), CA(SA) Jeanette Nel Phil
Slide 48: Questions & Answers
ANNUAL RESULTS QUESTIONS ANSWERS & 46
Slide 49: Disclaimer
Disclaimer This document has been prepared and issued by and is the sole responsibility of the management of Acsion Limited (the “Company” or “Acsion”) and its subsidiaries. No information made available in connection with this presentation may be passed on, copied, reproduced, in whole or in part,
Slide 50: Notes
NOTES 48
Slide 51: Notes
NOTES 49
Slide 52: Notes
NOTES 50
Slide 53: Notes
NOTES 51
Slide 54: Corporate information
Acsion Limited Auditors Incorporated in the Republic of South Africa Ernst and Young Inc. 102 Rivonia Road, Sandton, 2194, South Africa Registration number Telephone: (011) 772 3000 2014/182931/06 JSE Share Code: ACS ISIN: ZAE000198289 Company Secretary MWRK Accountants & Auditors Incorporated Direc
Slide 55: Acsion: action today prosper tomorrow
AC SION action today prosper tomorrow
Slide 56: www.acsionsa.co.za
www.acsionsa.co.za