Fairvest Limited Class A · JSE:FTA
Fairvest Limited Class A — H1 2025 Earnings Presentation
55 slides from Fairvest Limited Class A's earnings presentation, March 2025
Slide 1: Interim Results for the six months ended 31 March 2025
2025 INTERIM RESULTS for the six months ended 31 March 2025
Slide 2: Agenda
Agenda Bara Precinct Business overview Fairvest portfolio Retail portfolio Office portfolio Industrial portfolio Capital Expenditure Financial update Prospects for 2025 Q&A 1 Fairvest Limited Interim results for the six months ended 31 March 2025
Slide 3: Business overview
Access Park Business overview DARREN WILDER CEO
Slide 4: Our strategy and strategic objectives
Our strategy and strategic objectives The Ridge Fairvest’s strategy is to dispose of non-core assets in the office and industrial sectors, and to reinvest the proceeds in order to become a retail only REIT, focused on investing in assets servicing the previously disadvantaged communities and located
Slide 5: Fairvest at a glance
Fairvest at a glance at 31 March 2025 Diverse portfolio of R12.5 billion Market cap R9.2 billion (Sept ’24: R12.3 billion) (Sept ’24: R7.8 billion) Sectoral split Revenue Value GLA 69.8% 70.6% 52.9% Retail Sept ‘24: 69.0% Sept ‘24: 70.6% Sept ‘24: 52.9% Bara Precinct 18.4% 17.9% 20.8% Office Sept ‘2
Slide 6: March 2025 highlights
March 2025 highlights Robust performance in a challenging environment Solar investment produced 16.7% Nonkqubela with an 8.8% growth in distribution per B share of the portfolio’s electricity cost (Mar ‘24: 14.4%) 69.66 cents per share distribution per A share (Mar ‘24: 67.83 cents per share) Invest
Slide 7: Environmental impact
Environmental impact Fairvest is committed to treating the environment with care and sensitivity and takes this responsibility seriously. To this end, we have a number of solar and water projects in place to both limit our impact on the environment and to ensure ongoing organisational sustainability
Slide 8: Environmental impact (continued): Backup power
Environmental impact (CONTINUED) Backup power The Group constantly reassess the changing environment relative to our portfolio specific needs in terms of backup power due to failing authority supplies. Clubview Corner The Group own 67 generators with the capacity of 18.1MVA and we have 151 tenant-in
Slide 9: Environmental impact (continued): Water projects
Environmental impact (CONTINUED) Water projects Security of water supply is under greater pressure given the lack of maintenance of key infrastructure by government, worsened by the impact of load shedding. This makes it essential for Fairvest to ensure that water is conserved wherever possible, use
Slide 10: Acquisitions and disposals
Acquisitions and disposals Acquisitions GLA Purchase price Expected date Property name Location Sector (m²) (R) Yield Anchor tenants for transfer Thembalethu Square¹ George, Western Cape Retail 8 734 133 000 000 9.97% Shoprite and Boxer 1 July 2025 Ulundi Shopping Centre² Ulundi, KwaZulu-Natal Retai
Slide 11: Fairvest portfolio
South View Shopping Centre Fairvest portfolio DARREN WILDER CEO
Slide 12: Group portfolio highlights
Group portfolio highlights Value R12.5 billion (Sept ‘24: R12.3 billion) Sector breakdown based on revenue Number of properties 127 (Sept ‘24: 128) Total gross lettable area Retail 69.8% 1 034 322m² (Sept ‘24: 1 038 350m²) 14 Vacancy 5.5% Office 18.4% (Sept ‘24: 4.3%) 60 Tenant retention 81.3% 2 Ind
Slide 13: Portfolio composition
Portfolio composition Retail Office Industrial Average Average Average property property property Total Number of value Value % of Number of value Value % of Number of value Value % of value Vacancy band properties (R’m) (R’m) total properties (R’m) (R’m) total properties (R’m) (R’m) total (R’m) 0%
Slide 14: Portfolio leasing activity
Portfolio leasing activity New deals Renewals March March March March 2025 2024 2025 2024 Number of leases 236 257 Number of leases 216 155 Total GLA (m2) 54 554 80 092 Total GLA (m2) 78 131 74 000 Average gross rental achieved (R/m2) 104.64 85.55 Average gross rental expiry (R/m2) 125.51 104.01 Wei
Slide 15: Geographical and sectoral split
Geographical and sectoral split Geographical profile by gross revenue Geographical profile by GLA 33.4% Gauteng 48.7% 21.5% Western Cape 14.0% 11.8% KwaZulu-Natal 9.5% 10.3% Eastern Cape 8.4% 7.5% Limpopo 7.2% 6.0% North West 4.8% 4.2% Free State 3.3% 4.0% Northern Cape 3.1% 1.3% Mpumalanga 1.0% Sec
Slide 16: Retail portfolio
Nyanga Junction Retail portfolio RIAZ KADER COO
Slide 17: Retail portfolio highlights
Retail portfolio highlights Value R8.8 billion (Sept ‘24: R8.7 billion) WHERE WE ARE Number of properties 72 (Sept ‘24: 72) Total gross lettable area TOTAL 72 547 587m² 10 11 (Sept ‘24: 549 005m²) Vacancy 4.3% 20 (Sept ‘24: 4.0%) 2 5 Tenant retention 87.5% (Sept ‘24: 86.0%) 10 5 4 Positive rental re
Slide 18: Retail leasing activity
Retail leasing activity New deals Renewals March March March March 2025 2024 2025 2024 Number of leases 151 132 Number of leases 148 98 Total GLA (m2) 25 180 20 087 Total GLA (m2) 40 588 26 602 Average gross rental achieved (R/m2) 139.93 131.13 Average gross rental expiry (R/m2) 154.97 182.76 Weight
Slide 19: Retail portfolio composition
Retail portfolio composition Community Township Value Neighbour- Small March 2025 centre centre centre CBD hood Rural Convenience regional Total Number of properties 6 9 3 16 16 13 7 2 72 GLA (m²) 88 698 71 578 37 119 63 850 118 885 74 071 27 614 65 772 547 587 Retail vacancy GLA (m²) 6 804 2 528 12
Slide 20: Retail top tenant exposure by revenue
Retail top 10 tenant exposure by revenue Total 42.5% 9.7% 10 8.0% 8 6.0% 6 4.3% 4.0% 4 3.2% 3.1% 1.9% 2 1.2% 1.1% 0 GLA m2 64 472 55 541 41 112 20 141 25 129 20 398 17 524 9 652 3 307 4 368 Monthly revenue (% of total retail revenue) 19 Fairvest Limited Interim results for the six months ended 31
Slide 21: Retail new deals and renewals
Retail new deals and renewals Significant renewals 5 670 3 839 1 980 1 050 1 050 GLA (m2) Significant new deals 3 665 2 000 1 970 1 614 1 145 GLA (m2) 20 Fairvest Limited Interim results for the six months ended 31 March 2025
Slide 22: Trading densities
21 Annual Trading Density (R/m²) 0 20 000 40 000 60 000 80 000 100 000 120 000 Building 1 Building 2 Building 3 Building 4 Building 5 Building 6 Trading densities Building 7 Building 8 Building 9 Building 10 Fairvest Limited Interim results for the six months ended 31 March 2025 Building 11 Building
Slide 23: Trading density per segment
Trading density per segment 80 000 70 000 Trading Density (R/m²) 60 000 50 000 40 000 30 000 20 000 2021 2022 2023 2024 2025 Value centre CBD Township centre Neighbourhood Convenience Community centre Rural Small regional All 22 Fairvest Limited Interim results for the six months ended 31 March 2025
Slide 24: Percentage rent-to-sales ratio
23 Percentage 0 1 2 3 4 5 6 7 8 9 10 11 12 Building 1 Building 2 Building 3 Building 4 Building 5 Building 6 Building 7 Rent-to-sales ratio Building 8 Building 9 Building 10 Fairvest Limited Interim results for the six months ended 31 March 2025 Building 11 Building 12 Building 13 Building 14 Buildi
Slide 25: Retail strategic objectives
Retail strategic objectives Partnering on tenant expansion programmes, i.e. Boxer , TFG and Pepkor. Cosmos Centre Installation of water back-up solutions due to failing infrastructure or mismanagement in the smaller municipalities. Focus on community relationships to counter the impact of local risk
Slide 26: Office portfolio
Metalbox Office portfolio RIAZ KADER COO
Slide 27: Office portfolio highlights
Office portfolio highlights Value R2.2 billion (Sept ‘24: R2.2 billion) WHERE WE ARE Number of properties 29 (Sept ‘24: 29) Total gross lettable area TOTAL 29 214 595m² 1 (Sept ‘24: 214 100m²) Vacancy 13.4% 19 (Sept ‘24: 9.6%) 1 Tenant retention 63.0% (Sept ‘24: 75.9%) 3 Positive rental reversion 6.
Slide 28: Office leasing activity
Office leasing activity New deals Renewals March March March March 2025 2024 2025 2024 Number of leases 45 72 Number of leases 35 25 Total GLA (m2) 10 910 18 503 Total GLA (m2) 16 231 8 722 Average gross rental achieved (R/m2) 114.95 123.36 Average gross rental expiry (R/m2) 143.68 126.57 Weighted a
Slide 29: Office renewals
Office renewals Significant lease renewals over the past six months GLA (m²) 127 Bethlehem Street 1 990 1 Sturdee 1 682 Omniplace 1 661 Aviary 1 395 127 Bethlehem Street 1 261 Tijger Park 28 Fairvest Limited Interim results for the six months ended 31 March 2025
Slide 30: Office new deals
Office new deals Significant lease new deals over the past six months GLA (m²) Endemol – Kent 2 526 Rosebank Quarter 623 St Andrews Office Park 587 Tijger Park 576 Crownwood Office Park 530 Tijger Park 29 Fairvest Limited Interim results for the six months ended 31 March 2025
Slide 31: Office strategic objectives
Office strategic objectives Continued strategic Implementation of “FairSpecíng” attracts a better-quality tenant/revenue. Focus on improving, rental reversions, lease length and built in escalations within a highly competitive environment. Successful “retailing” of space by introducing flexible offi
Slide 32: Industrial portfolio
Germiston Route 24 Industrial portfolio RIAZ KADER COO
Slide 33: Industrial portfolio highlights
Industrial portfolio highlights Value R1.4 billion (Sept ‘24: R1.4 billion) WHERE WE ARE Number of properties 26 (Sept ‘24: 27) Total gross lettable area TOTAL 26 272 140m² 3 (Sept ‘24: 275 245m²) Vacancy 1.6% 21 (Sept ‘24: 0.9%) Tenant retention 85.2% (Sept ‘24: 91.5%) 1 Positive rental reversion 6
Slide 34: Industrial leasing activity
Industrial leasing activity New deals Renewals March March March March 2025 2024 2025 2024 Number of leases 40 53 Number of leases 33 32 Total GLA (m2) 18 464 41 502 Total GLA (m2) 21 312 38 676 Average gross rental achieved (R/m2) 50.44 46.64 Average gross rental expiry (R/m2) 55.55 44.76 Weighted
Slide 35: Industrial renewals
Industrial renewals Significant lease renewals over the past six months GLA (m²) Germiston Route 24 6 290 1 Range Road 2 250 Germiston Route 24 1 752 Roodepoort Robertville Industrial Park 1 313 Randburg Trevallyn 567 Randburg Trevallyn 34 Fairvest Limited Interim results for the six months ended 31
Slide 36: Industrial new deals
Industrial new deals Significant lease new deals over the past six months GLA (m²) Trador 2 843 MCG 904 Roodepoort Robertville Industrial 711 Roodepoort Robertville Industrial 710 Germiston Route 24 701 Robertville Industrial Park 35 Fairvest Limited Interim results for the six months ended 31 March
Slide 37: Industrial strategic objectives
Industrial strategic objectives A focus on tenant and landlord compliance due to changes in the Germiston Route 24 insurance industry. Engagement with CID/Council to maintain the sustainability of the node surrounding our assets. Target tenant retention above 90%. Maintain and reduce expenses, which
Slide 38: Capital expenditure
Rosebank Quarter Capital expenditure
Slide 39: Rosebank Quarter
Rosebank Quarter
Slide 40: Rosebank Quarter
Rosebank Quarter
Slide 41: Mkuze Plaza
Mkuze Plaza
Slide 42: Boxer Centre, Tabankulu
Boxer Centre, Tabankulu
Slide 43: MCG
MCG
Slide 44: Financial update
Access Park Financial update JACQUES KRIEL CFO
Slide 45: Distributable income analysis
Distributable income analysis Six months Six months ended ended 31 March 31 March 2025 2024 % Unaudited R‘000 R‘000 change Revenue (excluding straight-line rental income) 1 067 665 998 432 6.9% Sundry income 2 439 5 641 (56.8%) Property expenses (454 757) (421 188) 8.0% Net property income 615 347 5
Slide 46: Summarised consolidated statement of financial position
Summarised consolidated statement of financial position Unaudited Audited at at 31 March 30 September R’000 2025 2024 Assets Investment property 12 464 856 12 306 955 Other financial assets 17 621 234 139 Trade and other receivables 194 020 190 827 Loans receivable and amounts owing by non-controlli
Slide 47: NAV Bridge per B share
NAV Bridge per B share Cents per share 520 1 (22) 3 3 19 510 500 (8) 490 486 (3) 479 480 470 460 450 As at Operating Fair value Income from Accretionary Dividends Change in Shares vested As at 30 September 2024 profit adjustments equity accounted Dipula acquisition paid value of under conditional 31
Slide 48: Capital expenditure
Capital expenditure Capital expenditure Property value % of value R’000 R’000 spent 76 294 8 797 027 0.9% Retail South View Shopping Centre 39 187 2 229 320 1.8% Office Sandton Sunninghill Place 23 556 1 438 509 1.6% Industrial Beka Candela Total 139 037 12 464 856 1.1% 47 Fairvest Limited Interim r
Slide 49: Debt and hedge maturity profile
Debt and hedge maturity profile Millions 2 000 1 750 1 600 1 500 1 400 1 246 1 100 1 000 500 500 0 Expiring in the next 12 months Expiring in the next 24 months Expiring in the next 36 months Expiring in the next 48 months Expiring in the next 60 months Debt Swaps 48 Fairvest Limited Interim res
Slide 50: Debt metrics
Debt metrics 31 March 30 September 2025 2024 Loan-to-value (SA REIT BP) 31.8% 33.3% % of debt fixed 70.8% 68.6% Weighted average cost of funding 9.38% 9.70% Interest cover times 2.7 2.6 Weighted average maturity of debt months 23 19 Weighted average maturity of swaps months 12 14 Total debt (R’m) 4
Slide 51: Prospects for 2025
Rosebank Quarter Prospects for 2025 DARREN WILDER CEO
Slide 52: Prospects
Prospects Distribution per B share for the year expected to grow by between 8.0% and 10.0%. Maintain 100% pay-out ratio. Continue to simplify the business. Maintain LTV at below 35%. Conservative balance sheet. Acquisitions only at the right price. Bara Precinct 51 Fairvest Limited Interim results f
Slide 53: Thank you
Sandton Sunninghill Place Thank you
Slide 54: Q&A
Cosmos Centre Q&A
Slide 55: www.fairvest.co.za
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