Redefine Properties Limited · JSE:RDF
Redefine Properties — H1 2022 Earnings Presentation
104 slides from Redefine Properties's earnings presentation, May 2022
Slide 1: Looking beyond
Please follow our LinkedIn page for more details Looking beyond Group interim results for the six months ended 28 February 2022 1
Slide 2: First half strategic outcomes
First half strategic outcomes Focusing on what matters most Ranked 36th out of Lifted tenant Created depth within 1 045 REITs globally by Stabilised asset values Improved credit metrics retention rate senior leadership team Sustainalytics Increased number of Formulated climate Rightsized asset Maint
Slide 3: Growing reputation
GR GR 1 Growing reputation Growing REPUTATION Placing people and purpose at the heart of what we do Group interim results for the six months ended 28 February 2022 3
Slide 4: Growing reputation: key outcomes for first half of 2022
Key outcomes for first half of 2022 GR GR Our contribution to the achievement of the UN SDGs is a cornerstone of our ESG strategy Environmental Social Governance Growing reputation Green leasing frameworks on Humanitarian initiatives by Refreshed ESG strategy a per-sector basis are in the EPP
Slide 5: Building stakeholder centricity to create maximum impact
Building stakeholder centricity to create maximum impact GR GR Continued evaluation and refinement of the stakeholder engagement process Growing reputation → Created segmentable database for key stakeholders to enable meaningful engagement → Conducted stakeholder surveys to inform value expectations
Slide 6: Building the future-fit Redefine of tomorrow
Building the future-fit Redefine of tomorrow GR GR “We’re people” is core to our stakeholder centricity We’re not landlords – We’re people Growing reputation Our relationship-centric approach enables us to create and 2022 second half focus areas sustain meaningful value for our stakeholders → Delive
Slide 7: Investing strategically
GR IS 2 Investing strategically Investing STRATEGICALLY Shifting our thinking to the evolving relevance of real estate Group interim results for the six months ended 28 February 2022 7
Slide 8: Investing strategically: key outcomes
Key outcomes for the first half of 2022 GR IS Building a quality, diversified portfolio that delivers sustainable risk-adjusted returns Investing strategically Uses of cash flow of R5.0 billion Property assets under Strategic repositioning FY21 distribution net of DRIP 2 125 management valued at of
Slide 9: Local portfolio profile
Local portfolio profile GR IS A sizeable, well-diversified and high-quality portfolio Investing strategically Impact of portfolio repositioning Carrying value of R # Total GLA 4.2 million m2 properties R58.6 billion 25 000 327 315 302 350 (FY21 | 4.3 million m2) 296 (FY21 | R59.1bn) 272 267 20 000 3
Slide 10: Local portfolio key outcomes
Local portfolio key outcomes GR IS A challenging operating context, but well positioned for growth Investing strategically Weighted average exit cap rate per sector (core portfolio) Portfolio revaluation Active vacancy Industrial 9.0% of 0.3% increased to 8.3% (FY21 | -2.7%) (FY21 | 7.1%) Specialise
Slide 11: Local retail portfolio overview
Local retail portfolio overview GR IS Recovery continues but largely linked to discretionary spend Investing strategically Contribution to vacancy by type Carrying value Building total 66 14.7% (FY21 | 68) R24.2 billion (FY21 | R24.4bn) Number of tenants 2 754 (FY21 | 2 786) 32.2% Vacancy by type 13
Slide 12: Local office portfolio overview
Local office portfolio overview GR IS A quality portfolio to withstand the downturn cycle Investing strategically Contribution to vacancy by grade Vacancy by node Carrying value Building total 101 37.5% 17.3% Sandton: 14.6% (FY21 | 104) Western Cape: 16.9% R21.7 billion (FY21 | R21.8bn) Number of te
Slide 13: Local industrial portfolio overview
Local industrial portfolio overview GR IS Location and efficiency remains key in a cost-sensitive market Investing strategically Contribution to vacancy by type Building total 97 14.7% 0.7% Carrying value (FY21 | 97) R12.2 billion (FY21 | R12.3bn) Number of tenants 330 (FY21 | 334) Vacancy by type 1
Slide 14: Alternative income streams
Alternative income streams Broadening sources of income Redefine’s interests Platform profile Priorities → Provide loan funding to → Loans of R1.1 billion secure strategic partners Loans (FY21 | R2.0 billion) → Loans predominantly and provide transformation to various third parties secured by underl
Slide 15: International portfolio profile
International portfolio profile GR IS Exposure to Polish retail and logistics provides geographic diversification Investing strategically 5% Value by sector (%) Platform carrying value# EPP carrying value R11.5 billion R6.5 billion (FY21 | R12.6bn) (FY21 | R6.5bn) 23% Retail Industrial Office Europe
Slide 16: International portfolio key outcomes
International portfolio key outcomes GR IS Continued progress to simplify, de-risk and refocus the asset platform Economic risk: Poland vs emerging markets average Investing strategically Strong tenant demand Concluded takeover fueling logistics of EPP expansion Recycling of logistics M1 Marki acqui
Slide 17: European logistics platform overview
European logistics platform overview GR IS Lower cost of operation in Poland attracts users from the West seeking to expand their warehousing base Investing strategically GLA by tenant type (%) Value of income Tychy BTS completed 7% producing assets Production R8.1 billion and disposed for net 8% pr
Slide 18: EPP
EPP GR IS Organisational restructure of EPP well-timed Investing strategically Percentage of EPP’s GLA by retail category* Fashion and accessories 36.0% EPP was delisted on Redefine now holds Food/groceries/supermarkets 20.1% 8 March 2022 95.5% of EPP Electronics 13.5% Household appliances and acces
Slide 19: Impact of the war in Ukraine from a Polish real estate perspective
Impact of the war in Ukraine from a Polish real estate perspective On the ground in Poland, it is business as usual with palpable humanitarian support extended to the people of Ukraine Higher inflation and interest rate impact on consumer Market rentals will lift due to indexation spend to be offset
Slide 20: Committed capital allocation priorities
Committed capital allocation priorities GR IS Allocating capital to position asset platform for sustained value creation Investing strategically Improving: R154 million Expanding: R719 million High → Revenue enhancing operational capital expenditure → European logistics platform developments → Solar
Slide 21: Building the future-fit Redefine of tomorrow
Building the future-fit Redefine of tomorrow GR IS Creating smart and sustainable spaces Investing strategically Refocused property asset platform 2022 second half focus areas → Continuously improve, expand and protect asset platform South African assets 59% → Integrate EPP into Redefine’s way 24% R
Slide 22: Optimising capital
GR OC 3 Optimising capital Optimising CAPITAL Reshaping our funding sources within the confines of scarce and costly capital Group interim results for the six months ended 28 February 2022 22
Slide 23: Optimising capital: key outcomes
Key outcomes for the first half of 2022 GR OC Robust balance sheet enables sustainable value creation Optimising capital Sources of cash flow of R5.0 billion REIT LTV reduced to Interest cover ratio 41.9% improved to 2.7x (FY21 | 42.4%) (FY21 | 2.6x) Net disposals 3 142 Operational cash flow 1 275 A
Slide 24: Loan-to-value ratio back to acceptable level
Loan-to-value ratio back to acceptable level GR OC Targeted long-term LTV range 38% to 41% HY22 actual Pathway to target LTV Optimising capital 42.4% 2.8% 41.9% 1.8% 40.0% 1.6% 0.7% 0.5% -2.1% -1.8% -1.0% -2.0% -1.4% -1.1% -0.3% -0.1% FY21 SA REIT LTV iniatives Reduction operations Cashflow from adj
Slide 25: Full year 2021 dividend absorbed
Full year 2021 dividend absorbed GR OC Stable liquidity profile maintained with unrestricted access to R5.7 billion Cash generation remained strong with an average collection ratio of 101.3% Optimising capital Progress on FY23/24 maturities refinances advanced on back of continued healthy credit
Slide 26: EPP's funding challenge
EPP’s funding challenge GR OC Refinancing EPP is a top priority Optimising capital Sources of liquidity of R6.4 billion Rbn Debt of R5.2 billion to be Loans maturing in FY22 Proceeds from corporate reorganisation 3.2 fully settled. R3.4 billion and FY23 to be renewed in has already been repaid 2023
Slide 27: Building the future fit Redefine of tomorrow
Building the future fit Redefine of tomorrow GR OC Positioning the funding platform to cope with scarce and costly capital Optimising capital Drivers of the cost of capital % 2022 second half focus areas 12 → Expand sustainability funding 10 → Resolve EPP’s funding challenges → Improve funding flexi
Slide 28: Operating efficiency
GR OE 4 Operating efficiency Operating EFFICIENTLY Harnessing technology as an enabler and not as a disruptor Group interim results for the six months ended 28 February 2022 28
Slide 29: Operating efficiency: key outcomes
Key outcomes for the first half of 2022 GR OE Dealing with the fallout as we emerge from the pandemic Operating efficiency Distributable income analysis Rm Active portfolio Weighted average rental 3 500 2 877 2 798 margin at 81.5% renewal growth of -12.3% 3 000 (HY21 | 83.6%) (FY21 | -12.7%) 2 500 2
Slide 30: Financial headlines
Financial headlines GR OE Driving organic growth in a challenging macroeconomic environment Operating efficiency Distributable income per share CPS Half year distributable Dividend per share for the 60 51.5 52.9 income per share HY22 23.69 cents 50 26.33 cents (HY21 | 0.00 cents) 18.0 40 26.7 (HY21
Slide 31: Contributors to changes in distributable income
31 GR Operating efficiency OE 1 506 HY22 The knowns are outweighed by evolving unknowns, which means that our goal posts are no longer anchored Net finance charges 74 COVID-19 relief 63 Tailwinds 234 Antecedent earnings 41 adjustment M1 Marki / ELI 39 Contributors to changes in distributable income
Slide 32: Change in net asset value per share
Change in net asset value per share GR OE Adopting SA REIT best practice provides a new base from which to sustain growth Operating efficiency EPP (0.2) ELI 6.4 EUR (0.5) Vendor loans 0.9 Chariot (0.2) ZAR 0.03 EUR 0.3 AUD (0.6) Listed shares 0.5 Journal (2.7) EUR 1.9 AUD 0.5 USD (0.1) Properties (3
Slide 33: Preview of the balance sheet post the restructure of EPP
Preview of the balance sheet post the restructure of EPP Strengthening the balance sheet Redefine Redefine Restructured post EPP Rm HY22 EPP* reorganisation Property-related assets 71 019 16 115 87 134 Other assets 975 907 1 882 Cash and cash equivalents 1 256 701 1 957 Total assets 73 250 17 723 90
Slide 34: Building the future-fit Redefine of tomorrow
Building the future-fit Redefine of tomorrow GR OE Combining data and people competencies to deliver stakeholder experiences with a human touch By gross monthly rental (GMR) Operating efficiency 70 000 2022 second half focus areas 60 000 → Execute digital transformation 50 000 → Drive organic growth
Slide 35: Engaging talent
GR ET 5 Engaging talent Engaging TALENT Businesses do not create value, people do Group interim results for the six months ended 28 February 2022 35
Slide 36: Engaging talent: key outcomes
Key outcomes for the first half of 2022 GR ET Creating an environment where talented people do their best work Engaging talent Shifted focus from Creating and delivering mutual, transformation to Refreshed executive and management committee sustained value through inclusivity to drive innovation and
Slide 37: Building the future-fit Redefine of tomorrow
Building the future-fit Redefine of tomorrow GR ET Harnessing the power of Redefine to deliver our purpose to be more inclusive, sustainable and resilient Engaging talent 2022 second half focus areas → Build culture of innovation and exploration → Transition to data driven thinking → Shift focus fro
Slide 38: Wrap up
WRAP UP Our agility and adaptability will differentiate us Group interim results for the six months ended 28 February 2022 38
Slide 39: Key strategic focus in summary
Key strategic focus in summary Focusing more intensely on the variables under our control → Creating a platform for ecosystems of talent, technology and information → Continuously improving, expanding and protecting our property portfolio → Recycling capital through the disposal of non-core assets →
Slide 40: In closing
In closing We continue to expect the unexpected in a low confidence and highly uncertain environment History of distributable income and dividend declared Fundamentals of commercial property are largely a function of 70 economic growth and business confidence 60.1 60 51.5 52.9 Little tangible po
Slide 41: Supplementary information
Supplementary information Supplementary INFORMATION Group interim results for the six months ended 28 February 2022 41
Slide 42: Contents
Contents Supplementary information PAGE PAGE Top risks 43 LOCAL PROPERTY STATISTICS BY SECTOR Our stakeholder universe 44 Local portfolio overview 68 GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Local sectoral split 69 Redefine’s diversified property asset platform 45 Local geographical split 70 R
Slide 43: Top risks
Top risks High 9 2 1 15 Supplementary information Flags 3 Diversify funding through sustainability-linked framework Effect on business strategy 11 Increase in cyber threats and incidents Expand retail exposure in Poland 2022 risks on the rise Integration of EPP 8 4 Repurpose space in alignment
Slide 44: Our stakeholder universe
Our stakeholder universe Supplementary information Key stakeholders Stakeholder goal Tenants Differentiated provider of relevant space Investors Source of sustained growth in total returns Employees Employer of choice Funders Reliable source of returns on debt funding Suppliers Source of business op
Slide 45: Redefine's diversified property asset platform
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Redefine’s diversified property asset platform Supplementary information Portfolio valued at R71.0 billion Direct local property portfolio Direct international properties International listed securities M1 Marki 100.0% R2.2bn EPP N.V. 45.4% R6.5bn Prope
Slide 46: Reconciliation of property assets
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Reconciliation of property assets Supplementary information Rm FY21 property asset platform* 73 087 Deployment of capital 2 195 Disposals (4 022) Impairment reversal 51 Fair value adjustments (163) Foreign exchange adjustments (266) Equity accounted pro
Slide 47: Reconciliation of cash generated to total distributable income
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Reconciliation of cash generated to total distributable income Supplementary information HY22 R000 Net cash inflow from operating activities (as per statement of cashflows) 961 986 Items in cash flows from operating activities, but related to distributa
Slide 48: Simplified distributable income statement
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Simplified distributable income statement Supplementary information HY22 HY21 Change Rm Rm % Net operating income (NOI) from investment properties 2 380 2 427 (1.9%) Sundry income 3 4 (25.0%) Total revenue 2 383 2 431 (2.0%) Administrative costs (136) (
Slide 49: Local distributable income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Local distributable income analysis Supplementary information Rm Office Retail Industrial Specialised Head office Total Property portfolio revenue 1 116 1 175 552 31 - 2 874 Total revenue 1 116 1 175 552 31 - 2 874 Operating costs (170) (294) (48) (10)
Slide 50: International distributable income analysis
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME International distributable income analysis UK Europe Australia Africa Supplementary information GBP EUR RDF AUD USD Total R000 funding funding Chariot Europe funding Journal funding Lango international Contractual rental income - - - - - 496 - - 496 In
Slide 51: Income hedging position by currency
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Income hedging position by currency Supplementary information 2022 2023 2024 2025 EUR EUR amount (€m) 21.5 23.0 17.0 7.5 FEC rate (R: €1) 21.4 22.6 23.9 26.2 Group interim results for the six months ended 28 February 2022 51
Slide 52: Analysis of non-recurring income
GROUP PROPERTY ASSETS AND DISTRIBUTABLE INCOME Analysis of non-recurring income Supplementary information HY22 HY21 Rm Rm Realised foreign exchange gain/(loss) (excluding foreign exchange contracts) 39 8 Property trading profit 2 2 Lease cancellation fees 6 10 Total non-recurring income 47 20 Group
Slide 53: Funding snapshot
FUNDING Funding snapshot Supplementary information Funding snapshot HY22 FY21 SA REIT BPR – LTV 41.9% 42.4% Average term of debt 2.3 years 2.7 years % of debt secured 73.7% 69.6% % of asset secured* 65.6% 64.7% Weighted average cost of ZAR debt 8.4% 8.1% Weighted average cost of FX debt 1.9% 1.9% We
Slide 54: Loan-to-value calculation
FUNDING Loan-to-value calculation Supplementary information HY22 FY21 SA REIT BPR LTV ratio Rm Rm Property-related assets 71 019 73 087 Total assets 73 250 75 635 Less: Cash and cash equivalents (1 256) (1 356) Less: Derivative financial assets (288) (291) Less: Trade and other receivables (687) (90
Slide 55: Currency analysis of property assets and borrowings
FUNDING Currency analysis of property assets and borrowings Supplementary information HY22 FY21 Property Property assets Debt NAV hedge Weighted avg assets Debt NAV hedge Weighted avg Currency Rbn Rbn % cost % Rbn# Rbn# % cost % Net ZAR* 59.5 19.6 32.9% 8.4% 60.4 21.6 35.8% 8.1% AUD*1 - 1.0 - 2.5% 1
Slide 56: Analysis of secured and unsecured debt to property assets
FUNDING Analysis of secured and unsecured debt to property assets Supplementary information Assets Debt LTV Rbn Rbn Secured 47.5 22.4 47.2% Local 40.9# 19.4 47.4% Offshore 6.6## 3.0 45.5% Unsecured 23.5 6.4 27.2% Local** 14.9 6.2 41.6% Offshore 8.6 0.2 2.3% Group LTV without CCS 71.0 28.8 40.6% Cros
Slide 57: Debt funding profile
FUNDING Debt funding profile Supplementary information Debt and hedging maturity profile Debt maturity profile post Secured debt and assets Rbn Rbn refinances in progress % 12 12 76% 74% 10.0 9.5 10 10 72% 70% 70% 8 6.0 6.1 5.7 8 6.8 68% 6.2 5.7 67% 6 4.9 68% 66% 67% 3.4 6 65% 67% 65% 4 2.5 2.7 4 3.
Slide 58: Local investment strategy
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local investment strategy Supplementary information Investment criteria Our focus Diversify exposure across traditional Continue to ensure relevance and improve existing well-located properties through sectors tenant demand-driven development Exposure to
Slide 59: Local investment overview
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local investment overview Supplementary information Challenges Opportunities Depressed rental levels and negative rental reversions Avoid lease maturing concentration risk through pro-active and early rewards Pressure on disposal income impacting retail
Slide 60: Local portfolio income analysis
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local portfolio income analysis Supplementary information HY22 HY21 change Active portfolio NOI contribution Rm Rm % 1% Net operating income from investment properties 2 380 2 427 (1.9%) 19% Net operating income from acquired/development properties (24) (9) 16
Slide 61: Local active portfolio expenditure analysis
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local active portfolio expenditure analysis Supplementary information Rm % change HY21 460 Increased net municipal costs relate to vacancies in the office portfolio for triple net leases and council revaluations 16 13.7% Net electricity cost lower due to favou
Slide 62: COVID-19 tenant relief
LOCAL PROPERTY STRATEGY AND PERFORMANCE COVID-19 tenant relief Supplementary information HY22 HY21 Rm Rm Discounts offered 2.1 73.4 Retail 0.0 53.4 Office 2.1 15.4 Industrial 0.0 4.6 Deferrals offered 0.0 25.8 Retail 0.0 13.9 Office 0.0 5.2 Industrial 0.0 6.7 Gross discounts and deferrals offered 2.
Slide 63: Arrears and bad debts
LOCAL PROPERTY STRATEGY AND PERFORMANCE Arrears and bad debts Supplementary information HY22 FY21 HY21 FY20 Rm Rm Rm Rm Net arrears including municipal recoveries Arrears 643.4 728.2 780.5 792.4 Less: Expected credit loss (ECL) provision (299.6) (327.7) (427.7) (402.7) Total net arrears 343.8 400.5
Slide 64: Local retail portfolio: turnover performance by business type
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local retail portfolio | Turnover performance by business type Supplementary information Turnover comparison (Rm) 30 000 106% 25 000 20 000 15 000 110% 10 000 101% 5 000 108% 84% 88% 122% 108% 113% 136% 102% 136% 102% 0 Total Essential Apparel Department Hard
Slide 65: Local retail portfolio
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local retail portfolio Supplementary information Market Activity Priorities SAPOA reported a footfall improvement of 7.6% for 12 The reversion on renewals improved on the back of Tenant retention, WAULT and vacancy reduction continues months to December
Slide 66: Local office portfolio
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local office portfolio Supplementary information Market Activity Priorities National vacancies increased to 16.4% (Feb 2022) – there Finalised the long-term building automation strategy –the Active letting of vacancies and shadow vacancies in line is an
Slide 67: Local industrial portfolio
LOCAL PROPERTY STRATEGY AND PERFORMANCE Local industrial portfolio Supplementary information Market Activity Priorities Steel prices on construction steel up ca. 47% year on year Completion of the reconstruction at uShukela Industrial ESG integration Park Cornubia delayed due to adverse weathe
Slide 68: Local portfolio overview
LOCAL PROPERTY STATISTICS BY SECTOR Local portfolio overview Supplementary information HY22 FY21 Description Office Retail Industrial Specialised Total Total Number of properties 101 66 97 3 267 272 Number of tenants 1 104 2 754 330 1 4 189 4 214 Total GLA (m²) (million) 1.2 1.2 1.7 0.0 4.2 4.3 Vaca
Slide 69: Local sectoral split
LOCAL PROPERTY STATISTICS BY SECTOR Local sectoral split Supplementary information By value (%) By GMR (%) 1% 1% 21% 37% 20% 36% 41% 43% Office Retail By GLA (%) By number of properties (%) Industrial 1% Specialised 29% 38% 41% 36% 30% 25% Group interim results for the six months ended 28 February 2
Slide 70: Local geographical split
LOCAL PROPERTY STATISTICS BY SECTOR Local geographical split Supplementary information By value (%) By GMR (%) 5% 6% 5% 6% 16% 14% 74% 74% Gauteng Western Cape By GLA (%) By number of properties (%) 6% 8% KwaZulu-Natal 9% Other 6% 13% 14% 73% 71% Group interim results for the six months ended 28 Feb
Slide 71: Local sector analysis
LOCAL PROPERTY STATISTICS BY SECTOR Local sector analysis Supplementary information Type by value Type by GLA Type by GMR 14% 15% 11% Super regional 7% 13% 8% Regional Retail Convenience Other 44% 44% 43% 33% 34% 34% Type by value Type by GLA Type by GMR 12% 14% 22% Premium Grade 32% A-Grade 51% Off
Slide 72: Local tenant grading by GLA
LOCAL PROPERTY STATISTICS BY SECTOR Local tenant grading by GLA Supplementary information Total (%) Retail (%) 10% 15% 12% 13% 78% 72% Grade A Office (%) Grade B Industrial (%) 6% 11% Grade C 7% 19% 70% 87% Group interim results for the six months ended 28 February 2022 72
Slide 73: Local lease expiry profile by GLA
LOCAL PROPERTY STATISTICS BY SECTOR Local lease expiry profile by GLA By gross lettable area (GLA) Supplementary information 1 200 1 000 Office Retail Industrial Specialised Total Monthly 109 299 63 914 18 614 - 191 827 800 2022 80 472 80 613 83 330 - 244 415 Thousands 2023 156 175 179 875 216 074 -
Slide 74: Local lease expiry profile by GMR
LOCAL PROPERTY STATISTICS BY SECTOR Local lease expiry profile by GMR By gross monthly rental (GMR) Supplementary information 70 000 60 000 Office Retail Industrial Specialised Total Monthly 15 421 061 11 265 611 931 337 - 27 618 009 50 000 2022 14 343 635 16 396 419 5 307 232 - 36 047 286 Thousands
Slide 75: Local top properties and tenants of total portfolio
LOCAL PROPERTY STATISTICS BY SECTOR Local top 10 properties and tenants of total portfolio Supplementary information Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Centurion Mall Gauteng 3 466 000 118 959 Macsteel 550 138 27 241 229 Alice Lane Gauteng 3 417 500 77 915 Pepkor 253 416 25 48
Slide 76: Local top retail properties and tenants
LOCAL PROPERTY STATISTICS BY SECTOR Local top 10 retail properties and tenants Supplementary information Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Centurion Mall Gauteng 3 466 000 118 959 Shoprite 88 784 11 927 783 Kenilworth Centre Western Cape 1 454 000 53 433 Pick n Pay 85 232 10
Slide 77: Local top office properties and tenants
LOCAL PROPERTY STATISTICS BY SECTOR Local top 10 office properties and tenants Supplementary information Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Alice Lane Gauteng 3 417 500 77 915 Government 131 423 17 621 213 115 West Street Gauteng 1 430 200 41 091 Alexander Forbes 44 611 14 208
Slide 78: Local top industrial properties and tenants
LOCAL PROPERTY STATISTICS BY SECTOR Local top 10 industrial properties and tenants Supplementary information Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) 233 Barbara Road Gauteng 965 900 120 277 Macsteel 550 138 27 241 229 Pepkor Isando Gauteng 761 800 107 017 Pepkor 172 797 13 168 916
Slide 79: Local specialised properties
LOCAL PROPERTY STATISTICS BY SECTOR Local specialised properties Supplementary information Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Bedford Gardens Hospital Gauteng 365 100 12 817 Bedford Gardens Hospital 12 817 3 342 568 Park Central Gauteng 150 600 - - - - Loftus Park Hotel (25% s
Slide 80: Top local undeveloped land
LOCAL PROPERTY STATISTICS BY SECTOR Top 10 local undeveloped land Supplementary information Value Property# Province (R000) S & J Industrial (90% share) Gauteng 829 800 Galleria (90% share) Gauteng 141 120 Atlantic Hills (55% share) Western Cape 132 495 Brackengate 2 Mainland Western Cape 117 384 Co
Slide 81: Disposals: non-core property assets
INVESTING ACTIVITIES Disposals | Non-core property assets Supplementary information Date Proceeds Property Province of transfer GLA (m²) (R000) Yield (%) Retail 37 555 387 125 11.3 Shoprite Park Western Cape 27-Sep-21 27 967 261 025 11.4 Riverside Mall Western Cape 17-Sep-21 9 588 126 100 11.0 Offic
Slide 82: Acquisitions
INVESTING ACTIVITIES Acquisitions Cost of Supplementary information Date acquisition Property Province of transfer GLA (m²) (R000) Yield (%) Retail 5 553 133 640 7.9% Kyalami Corner JV (20% share) Gauteng 1-Sep-21 5 553 133 640 7.9% Industrial 27 410 - Erf 179205 (land)* Western Cape 26-Nov-21 27 41
Slide 83: Non-current assets held for sale
INVESTING ACTIVITIES Non-current assets held for sale Supplementary information Value Local properties Province Sector GLA (m²) (R000) Yield (%) Industrial 11 617 21 165 3.1% 66 Michelin Street (Ex -Macsteel VRN Vaal) Gauteng Industrial 6 943 12 835 0.0% 28 Stevenson Road (Ex-Macsteel Roofing Queens
Slide 84: Local new developments in progress
INVESTING ACTIVITIES Local new developments in progress Supplementary information Development Projected Initial Total value of costs incurred Still to development yield work completed# during 2022## spend Completion Property Province GLA (m²) Sector cost (R000) (%) (R000) (R000) (R000) date Local ne
Slide 85: Local redevelopments completed
INVESTING ACTIVITIES Local redevelopments completed Supplementary information Projected Total value of redevelopment work completed Redevelopment Completion Redevelopments* Province cost (R000)* (R000)** costs## (R000) date Retail 31 750 28 000 28 000 Chris Hani Crossing (insurance rebuild) (50% sha
Slide 86: Local redevelopments in progress
INVESTING ACTIVITIES Local redevelopments in progress Supplementary information Projected Total value of redevelopment work completed** Redevelopment Completion Still to spend Redevelopments* Province cost (R000) (R000) costs## (R000) date (R000) Retail 26 972 10 976 9 801 15 996 Hazeldean Retail Sq
Slide 87: Local developments and redevelopments future committed pipeline
INVESTING ACTIVITIES Local new developments and redevelopments future committed pipeline Supplementary information Projected development Budgeted initial Project start New projects Province cost (R000)* yield (%) date Retail 11 757 Blue Route Mall Western Cape 11 757 7.5 Apr-22 Commercial 179 012 Hi
Slide 88: Local infrastructure projects
INVESTING ACTIVITIES Local infrastructure projects Supplementary information Total value of Projected work infrastructure completed Infrastructure Completion Infrastructure projects completed Province cost (R000)* (R000)** costs*** (R000) date Industrial 495 075 491 338 11 307 S & J infrastructure p
Slide 89: Local solar PV projects in progress
INVESTING ACTIVITIES Local solar PV projects in progress Supplementary information Plant Size Capex First year Building (MWp) (R’000) return (%) Retail 16.9 181 916 18.7% South Coast Mall 3.2 30 984 16.6% Goldfields Mall (parking) 2.1 27 982 17.4% Matlosana Mall 2.6 25 810 24.5% East Rand Mall Expan
Slide 90: International investment strategy
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE International investment strategy Supplementary information Investment criteria Our focus Local partner representation and Limited to Poland aligned with Redefine’s interests Provide ongoing strategic and financial support to our people in-countr
Slide 91: International investment overview
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE International investment overview Supplementary information Challenges Opportunities EPP faces significant debt maturity challenges Integrate EPP into Redefine Operating in a high inflation environment Market rentals to grow (especially Logisti
Slide 92: Poland
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland Supplementary information Redefine’s interests EPP 45.4% (post the reorganisation, holding has increased to 95.5%) M1 Marki 100% (disposed to EPP/PIMCO joint venture during March) European Logistics 46.5% Platform profile 74% exposure to r
Slide 93: Poland continued: market overview EPP
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information Market overview EPP | continued Key market trends in the retail sector - Very limited new developments planned for shopping centres (mainly extensions) - Rapid expansion of retail parks (even in very small
Slide 94: Poland continued: key operational highlights
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information Key operational highlights 100% of EPP’s shopping centres has been operational since July 2021, when no lockdowns were in place, but with certain restrictions still applicable Despite the restrictions, t
Slide 95: Poland continued: disposals
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information Disposals EPP concluded an agreement to dispose of a Power Park in Opole, at a market price that represented a small discount to book value, to the German-based investment company, Gutenberg Capital and tr
Slide 96: Poland continued: European Logistics market overview
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information European Logistics 2021 recorded unprecedented levels of investor, developer and occupier activity in the Polish logistics market, with number of transactions, leasing, new supply and development activity
Slide 97: Poland continued: European Logistics operational highlights
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information European Logistics At 28 February 2022, the GLA of the active portfolio was 574 099m², reflecting a decrease of 115 160m² (17%) compared to 31 August 2021 Key operational highlights The decrease in GLA i
Slide 98: Poland continued: developments under construction
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information European Logistics At 28 February 2022, the following developments were under construction Developments GLA Development cost Development cost Anticipated Property (m²) (EURm) (Rm) completion date Krakow No
Slide 99: Poland continued: undeveloped land
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information European Logistics As at 28 February 2022, the following undeveloped land was available for future developments Developments Total GLA Property (m²) Lublin II 43 880 Tychy Multi-let expansion 4 017 Wroclaw
Slide 100: Poland continued: disposals, liquidity and activity
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information European Logistics The sale of the six assets was completed on 8 December 2021. All cash proceeds, after settling transaction costs, were distributed to the shareholders, with Redefine receiving EUR48.8 mi
Slide 101: Poland continued: strategy
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information Strategy EPP Redefine and EPP are now in the process of implementing an integration plan to secure a closer working relationship for the future Renewing the debt facilities in the business remains a crit
Slide 102: Poland continued: key priorities and outlook
INTERNATIONAL PROPERTY STRATEGY AND PERFORMANCE Poland | continued Supplementary information Key priorities Sell the equity interest in Lango. Progress is slow in this regard Integrate EPP into Redefine to align EPP’s people with the Redefine way of doing things Continue to invest and grow the
Slide 103: Disclaimer
Disclaimer This presentation may include forward-looking statements which statements are not based on historical information, but rather premised on certain assumptions, risks, COVID-19 disclaimer estimates and/or uncertainties (“risks and uncertainties”), which are taken into consideration as at da
Slide 104: Thank you
Thank YOU Please follow our LinkedIn page for more details Group interim results for the six months ended 28 February 2022 104 104