Hyprop Investments Limited · JSE:HYP
Hyprop Investments — Investor Presentation (June 2019)
22 slides from Hyprop Investments's investor presentation, Jun 28, 2019
Slide 1: Pre-close 28 June 2019
Pre-close 28 June 2019 1 Agenda Outlook & Focus South Africa R Eastern Europe € Sub-Saharan Africa $ Borrowings Outlook & Focus 2 2 1
Slide 2: Outlook & Focus - March 2019
Outlook & Focus - March 2019 Hyprop Group ▪ Review strategy ▪ Recycle capital to support growth ▪ Review borrowings ▪ Cash-backed distributions ▪ Restore Moody’s investment grading ▪ Long-term investment decisions South Africa Eastern Europe Sub-Saharan Africa (Excl.SA) ▪ Reposition malls ▪ Strength
Slide 3: The Why and Mission
The Why Why do we exist? We create environments and opportunities for people to connect and have authentic and meaningful experiences How do we do it? By owning and managing a portfolio of dominant retail centres in key economic nodes in South Africa and Eastern Europe 5 5 Mission To be the leading
Slide 4: Operations - South Africa
Gauteng region Property locations as per the next slide of all the SA assets South Africa H Y D E P A R K C O R N E R ▪ Reposition malls ▪ Partner with tenants ▪ Portfolio approach Western Cape region Canal Walk, Century City, Cape Town 7 7 Operations South Africa Trading density - R/m² Rent ratio -
Slide 5: Edcon exposure and Top 10 Tenant Groups by GLA
Edcon exposure South Africa % of Gross Income (Dec 2018) Exposure per property (Dec 2018) 2.5% 7.6% 2.1% 2.1% 2.2% % of Gross Income % of GLA 2.0% 1.4% 1.5% 1.1% 1.0% Edcon 1.0% 0.8% 0.9% 0.8% 0.8% 0.7% 0.7% Other tenants 0.4% 0.4% 0.5% 0.2% 0.1% 0.1% 0.1% 92.4% 0.0% Canal Walk Clearwater The Glen R
Slide 6: Woodlands and The Glen
Woodlands ▪ Upgrade to the piazza and foodcourt area Foodcourt Footcount • Opened April 2019 2017/2018 2018/2019 • Integrated cinema block and piazza to improve 400 000 65.3% 300 000 entertainment offering 200 000 1.2% 11.1% • Two new restaurant sites are trading well (Mooi and Casa Bella) 100 000 •
Slide 7: Canal Walk and Sustainable initiatives
Canal Walk ▪ Foodcourt upgrade project • Ratanga Junior has withdrawn • Project scope being reviewed to include entertainment ▪ Restroom refurbishment project • Project scope incl. refurbishing all 12 public ablution facilities • Phased over a 9-month period to minimise impact on customers • Capital
Slide 8: Operations - Eastern Europe
Croatia Serbia Bulgaria Eastern Europe Montenegro Macedonia ▪ Strengthen the entertainment and restaurant offering ▪ Secure rights for extensions City Center One East - Zagreb, Croatia 15 15 Operations Eastern Europe Trading density per month - € Rent ratio - portfolio 400 12% 350 12% 300 4.7% 3.3%
Slide 9: The Mall, Sofia and Skopje City Mall
The Mall, Sofia ▪ Hypermarket conversion • Conversion of former Carrefour hyper to traditional mall • Converted area comprises 12 000m² GLA with 40 line stores • Anchor tenants incl. Billa supermarket (2 450m²), JYSK (1 280m²) Sinsay (880m²) & PEPCO (540m²) • Capital investment €23,5 million • Addit
Slide 10: Delta Podgorica and Eastern Europe future projects
Delta Podgorica, Montenegro ▪ Refurbishment of parking deck and new parking equipment • Project scope includes - Structural repairs to the parking deck behind the mall - Installation of new parking equipment • Capital investment €960 000 delivering a 15% yield • Project completion August 2019 19 19
Slide 11: Operations - Sub-Saharan Africa
Sub-Saharan Africa (Excl.SA) Ghana Nigeria ▪ Reduce exposure ▪ Active asset management Zambia Manda Hill, Lusaka, Zambia 21 21 Operations Sub-Saharan Africa Trading density - $ / m² 220 3.8% 2.3% 215 218 216 210 213 213 2.8% 205 208 207 200 Jun Jun Dec Dec Apr Apr 2017 2018 2017 2018 2018 2019 (Roll
Slide 12: Disposals; Borrowings and Moody's Rating
Disposals Sub-Saharan Africa ▪ Phase one • Achimota, Ghana and one other asset • Subject to CP’s • Target completion date 31July 2019 ▪ Phase two • Ikeja Mall, Nigeria • Under exclusivity • Target completion date 31 March 2020 ▪ Phase three • Balance of the portfolio • Various interested parties • T
Slide 13: LTV Calculations & Key Objectives
LTV Calculations & Key Objectives Dec 2018 (R ‘000) Jun 2018 (R ‘000) Per Moody’s Hyprop Per Moody’s Hyprop balance sheet methodology methodology balance sheet methodology methodology Dec 2018 Dec 2018 Dec 2018 Jun 2018 Jun 2018 Jun 2018 Hyprop total assets 34 785 233 34 785 233 34 785 233 35 012 92
Slide 14: Reducing LTV and Interest Cover Ratios
Reducing LTV R1.05bn R2.9bn 41.7% R2.4bn 38.5% 35.0% 27 27 Interest Cover Ratios (times cover) Gross interest paid Net interest paid Bank covenant Consolidated EBITDA / interest paid Consolidated cash interest paid / Cash generated from operations 12.37 12 12 10 8.81 10 8.08 8 8 7.18 6.38 6 4.36 4.5
Slide 15: Outlook and focus areas - June 2019
Outlook and focus areas - June 2019 South Africa Eastern Europe ▪ Improve trading densities ▪ Increase value through asset management initiatives and mall extensions ▪ Minimise/contain impact of reversions ▪ Improve operating performance by leveraging off SA expertise (facilities management, systems
Slide 16: Hystead capital structure (€ million)
Appendices Clearwater Mall, Johannesburg 31 31 Hystead capital structure (€ million) 100% 10% 12% 11% 160 67% 40% 270 241 60% PDI HYPROP PDI HYPROP Debt guaranteed directly Dec 2018 Dec 2018 Dec 2018 Dec 2018 PDI Dec 2018 €m €m % % * Guarantee fee % % Shareholding in Hystead 40 Debt guaranteed direc
Slide 17: Investment profile and Company structure
Investment profile – as at 31 December 2018 SA shopping centres Core South African portfolio SA value centres R29.7bn = 73% SA standalone offices 1% Cap rates: 6.3% – 8.8% 68% 4% Total 19% Eastern Europe portfolio Hyprop share R7.9bn R41bn Cap rates: 7.0% – 9.3% 8% Sub-Saharan Africa (excl. SA) Hypr
Slide 18: South African properties
South African properties Canal Walk & Portfolio summary Canal Walk Offices Clearwater The Glen Woodlands CapeGate % Ownership 80% 100% 75.15% 100% 100% GLA 158 741 87 059 80 431 71 626 63 832 Vacancy levels 0.5% 0.3% 5.7% 0.2% 0.1% Avg foot count per m² / month 11.1 9.5 11.9 9.4 14.0 * As at April 2
Slide 19: Eastern Europe properties
Company structure Eastern Europe portfolio Hystead Limited (established in the UK) EASTERN EUROPE 100% 100% 100% 100% 90% 90% 60% owned City Center City Center Delta City Delta City The Mall Skopje City Mall One - East, One - West, Belgrade Podgorica Sofia (Macedonia) Zagreb Zagreb (Serbia) (Montene
Slide 20: Sub-Saharan Africa properties
Company structure Sub–Saharan Africa Hyprop Investments Mauritius 37,5% 50% 75% 50% AttAfrica Manda Hill Ikeja City Mall SUB-SAHARAN (Mauritius) (Zambia) (Nigeria) AFRICA 100% owned 47% 45% 75% 75% Accra Mall West Hills Mall Achimota Retail Centre Kumasi City Mall (Ghana) (Ghana) (Ghana) (Ghana) 39
Slide 21: Rating agency overview – Moody's
Rating agency overview – Moody’s Rating class Rating scale Rating Rating outlook Long Term International Ba1 Long term National Aa3.za Negative Short term National P1.za Rating Action - 13 February 2019 Positives Points to watch 1. Refinancing of existing debt becoming due in the next 18 months 1. H
Slide 22: Contact details
Contact details Investor relations Michèle Mackey Mobile: +27 82 497 9827 Tel: +27 10 003 0661 E-mail: michele@singular.co.za Delta City, Belgrade 43 43 22
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