Spear Reit Ltd. · JSE:SEA
Spear Reit — Investor Presentation (June 2024)
22 slides from Spear Reit's investor presentation, Jun 27, 2024
Slide 1: Retail Investor Presentation
RETAIL INVESTOR PRESENTATION 27 JUNE 2024 CREDIBLE PREDICTABLE CONSISTENT
Slide 2: Table of Contents
Table of CONTENTS 01. 02. 03. 04. 05. 06. 07. 08. VIRGIN PADEL, THE ISLAND, PAARDEN EILAND UNLOCK THE STOCK / 27 JUNE 2024 2
Slide 3: Introduction
01 INTRODUCTION MEGA PARK, BELLVILLE UNLOCK THE STOCK / 27 JUNE 2024 3
Slide 4: Introduction
01. Introduction | Spear obtains its specialisation through regional investment in the Western Cape and diversification through asset type investment into industrial, retail, commercial and mixed-use assets. Spear listed on the JSE as a As at February 2024, the Spear Spear is an internally managed R
Slide 5: From Spear to There
02 FROM SPEAR TO THERE 27 JUNCTION ROAD, PAROW UNLOCK THE STOCK / 27 JUNE 2024 5
Slide 6: Spear Timeline
02. From Spear to There | SPEAR TIMELINE This infographic shows our growth story to 22 MAY 2018 2024 and the many milestones celebrated as TRANSFER TO MAIN BOARD Spear’s asset base and market cap grew. OF THE JSE JUNE 2017 2 LONG STREET ACQUIRED FOR R389 MILLION JUNE 2017 15 ON ORANGE ACQUIRED FOR 2
Slide 7: Mission Statement and Strategy
03 MISSION STATEMENT AND STRATEGY BRAVO PARK, BLACKHEATH PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 7 UNLOCK THE STOCK / 27 JUNE 2024 7
Slide 8: Mission Statement and Strategy
03. Mission Statement and Strategy | THE MISSION SPEAR INVESTMENT STRATEGY To be the leading Western Cape-focused REIT and to consistently grow our distribution per share ahead of inflation and to operate within the top quartile of our peer group. 1. 2. Operating Strategy ACQUISITIONS NON-CORE DISPO
Slide 9: FY2024 Salient Details
04 FY2024 SALIENT DETAILS 2 LONG STREET, CAPE TOWN UNLOCK THE STOCK / 27 JUNE 2024 9
Slide 10: Portfolio Snapshot
04. FY2024 Salient Details | PORTFOLIO SNAPSHOT 29 7.52% 98.92% ASSETS AVERAGE IN-FORCE FY2024 CASH ESCALATIONS COLLECTIONS R4.62BN 426 542M2 R36M PORTFOLIO VALUE GLA NET CASH FROM OPERATING 9.78% ACTIVITIES 93.12% PORTFOLIO VALUE GENERATED INCREASE OCCUPANCY (FY2023) 26 MONTHS R157.6M WALE AVG PROP
Slide 11: Financial Snapshot
04. FY2024 Salient Details | FINANCIAL SNAPSHOT 1.04% FY2024 DIPS growth 82.99 R11.79 31.60% DIPS CENTS TANGIBLE NET LTV (SA REIT) FY2024 ASSET VALUE (TNAV) 78.86 2.79% 47% DPS CENTS FY2024 INCREASE FROM FIXED DEBT RATIO 40.53 Cents FY2023 25 MONTHS Final DPS 95% FY2024 AVERAGE R11.47 AVG DEBT EXPIR
Slide 12: Spear Total Return FY2024
04. FY2024 Salient Details | SPEAR TOTAL RETURN FY2024 30% 25% 20% 23.1% 282.4m 33.3m 15% Gross number of Volume traded 10.3% shares issued during period 10% 5% 7.3% 0% -5% -10% 11.80% R245m -15% Ratio of volume Rand value traded traded to shares during period -20% issued 23 23 23 23 23 23 23 24 24
Slide 13: Portfolio Overview
05 PORTFOLIO OVERVIEW LIBERTY LIFE BUILDING, CENTURY CITY PROVISIONAL SUMMARISED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS / YEAR ENDED 28 FEBRUARY 2023 13 UNLOCK THE STOCK / 27 JUNE 2024 13 13
Slide 14: Sectoral Performance - FY2024
05. Portfolio Overview | SECTORAL PERFORMANCE - FY2024 Operating environment remains tough amid macroeconomic headwinds RETAIL COMMERCIAL INDUSTRIAL 47 366M2 GLA 126 235M2 GLA 252 941M2 GLA Trading has been consistent within the Offices: Slower progress made in vacancy Strong trading during FY2024 w
Slide 15: Sectoral Split by Value, Revenue and GLA
05. Portfolio Overview | SECTORAL SPLIT BY VALUE, REVENUE AND GLA R4.6bn R607m 426 542m2 48% 35% 16% 1% 48% 36% 16% 30% 59% 11% Value of properties Property revenue (excluding smoothing) Gross lettable area (m 2) 29 93% 14 9 6 84% 97% 96% Number of properties Property occupancy (%) Commercial Indust
Slide 16: Sustainability Update
05. Portfolio Overview | SUSTAINABILITY UPDATE 19 478 116 Total Number of Total Number of Summary of solar PV Panels Inverters Number of Average solar properties with solar penetration rate (%) % of portfolio with solar Self-funded Roof rental Financed 16 -1 2 8 6 Total Future: 2 7 6 15 21 31 55 54
Slide 17: Post Balance Sheet Activity
05. Portfolio Overview | POST BALANCE SHEET ACTIVITY Disposals Emira Portfolio Acquisition Post Implementation Combined Portfolio VALUE: R1.146bn YIELD: Acquisition of 10.1% 13 properties EXPECTED TRANSFER: Value of properties 142 EDWARD 1 December 2024 R5.4bn VALUE: DISPOSAL DATE: R43m 26 March 202
Slide 18: Outlook
06 OUTLOOK NORTHGATE PARK, BROOKLYN UNLOCK THE STOCK / 27 JUNE 2024 18
Slide 19: Outlook FY2025
06. Outlook | OUTLOOK FY2025 The macroeconomic climate remains extremely challenging despite the stronger performance of The higher-for-longer interest rate environment will in the short term reduce profitability. the Western Cape in various sectors of the economy. Boxing smart in FY2025 is the game
Slide 20: Conclusion
07 CONCLUSION SABLE SQUARE SHOPPING CENTRE, MILNERTON UNLOCK THE STOCK / 27 JUNE 2024 20
Slide 21: What Do You Get When You Invest in Spear?
07. Conclusion | WHAT DO YOU GET WHEN YOU INVEST IN SPEAR? Exposure to a diversified, Western Cape only real estate portfolio with management in close proximity of each asset Conservatively valued core portfolio with no value attributed to developable bulk = Investor NAV upside as bulk is unlocked M
Slide 22: 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 UNLOCK THE STOCK / 27 JUNE 2024 22