Growthpoint Properties Limited · JSE:GRT

Growthpoint Properties — FY2013 Earnings Presentation

83 slides from Growthpoint Properties's earnings presentation, September 2013

  1. Slide 1: Annual Results Presentation

    GROWTHPOINT PROPERTIES LIMITED ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2013

  2. Slide 2: Agenda

    AGENDA • Introduction & highlights • Financial review • Capital management • Operational review o South Africa o Australia - GOZ o V&A Waterfront • Property Investment Activities • Sustainability & CSI • REIT conversion • Prospects • Annexures FAST & FURIOUS, Meadowdale, Gauteng

  3. Slide 3: Introduction & Highlights

    INTRODUCTION & HIGHLIGHTS WOODMEAD RETAIL PARK, Johannesburg

  4. Slide 4: Introduction to Growthpoint

    INTRODUCTION TO GROWTHPOINT 4 • The largest listed property company on the JSE with property assets valued at R59,8 billion including 100% of Growthpoint Properties Australia ("GOZ") and 50% of the V&A Waterfront in Cape Town • Market capitalisation of R49,9 billion at 30 June 2013 (R26.39 per linke

  5. Slide 5: Highlights for the Year under Review

    HIGHLIGHTS FOR THE YEAR UNDER REVIEW 5 Income yield Capital growth 21.2% Return to investors for the year 6.5% 14.7% Distribution per linked unit 149,0 cents 7.2% growth Average annual growth in distributions over 7.0% last 5 years Total cost Market value R380,2 million additional investment in June

  6. Slide 6: Growth in Distribution per Linked Unit

    GROWTH IN DISTRIBUTION PER LINKED UNIT 6 Interim distribution Final distribution Cents 180 149,0 150 Growth 139,0 131,0 Growth 7.2% Growth 6.1% 121,2 8.1% 114,6 Growth 120 5.8% 76,3 71,2 67,1 62,1 7.2% 90 6.1% 58,3 8.1% 6.5% 60 72,7 67,8 63,9 6.1% 7.2% 30 59,1 8.1% 56,3 5.0% 0 FY2009 FY2010 FY2011 F

  7. Slide 7: Growth in Tangible Assets and Market Capitalisation

    GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION 7 Tangible assets (R’bn) Unit price (cents) Market cap (R’bn) NTAV per unit (cents) R'billion Cents 70 2800 60 2400 50 2000 40 1600 30 1200 20 800 10 400 0 0 Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13

  8. Slide 8: Financial Review

    FINANCIAL REVIEW V&A WATERFRONT, Cape Town

  9. Slide 9: Contribution to Distributable Income

    CONTRIBUTION TO DISTRIBUTABLE INCOME 9 R’million 3 000 2 728 312 11% 2 500 2 395 394 14% 293 12% 2 072 18 1% 2 000 282 168 8% 12% V&A 1 500 GOZ RSA 2 022 1 820 1 886 75% 1 000 76% 91% 500 0 Jun 13 Jun 12 Jun 11 • The contribution from V&A Waterfront and GOZ to total distributable income exceeded 25%

  10. Slide 10: Consolidated Distribution Calculation

    CONSOLIDATED DISTRIBUTION CALCULATION 10 Jun 2013 Jun 2012 Increase/ R’ million R’ million (Decrease) Gross property revenue 5 773 5 107 13.0% RSA 4 354 4 096 6.3% GOZ 1 419 1 011 40.4% Property expenses (1 237) (1 102) 12.3% RSA (1 078) (997) 8.1% GOZ (159) (105) 51.4% Net property income 4 536 4 0

  11. Slide 11: Wealth Created and Distributed to Stakeholders

    WEALTH CREATED AND DISTRIBUTED TO STAKEHOLDERS 11 R’million 6 000 5 653 35 0.6% 469 8.3% 5 000 4 929 363 7.4% 1 820 32.2% 4 000 3 918 1 710 8.17% 34.7% 320 Reinvested in the group 248 4.4% Governments - direct taxes 32% 3 000 1 253 Providers of debt 182 3.7% Minority interest holders 71 1.8% Linked

  12. Slide 12: Expense to Income Ratio

    EXPENSE TO INCOME RATIO 12 RSA V&A % Property expense ratio Operating expense ratio % Property expense ratio Operating expense ratio 35 40 35 33.3% 30 28.8% 32.1% 27.4% 27.6% 4.0% 30 6.6% 25 3.1% 2.7% 6.1% 25 20 20 15 24.8% 24.3% 26.7% 26.0% 24.9% 15 26.0% 10 10 5 5 0 0 Jun 13 Jun 12 Jun 11 Jun 13 J

  13. Slide 13: Consolidated Balance Sheet (Extracts)

    CONSOLIDATED BALANCE SHEET (EXTRACTS) 13 Jun 2013 Jun 2012 Increase/ R’million R’million (Decrease) Property portfolio* 54 231 48 106 12.7% RSA 39 168 34 988 11.9% GOZ*** 15 063 13 118 14.8% 50% Investment in V&A Waterfront 5 444 4 912 10.8% Nominal borrowings** 19 571 19 731 (0.8%) RSA 12 468 13 61

  14. Slide 14: Capital Management

    CAPITAL MANAGEMENT LAKESIDE, Centurion

  15. Slide 15: Loan to Value & Interest Cover Ratio

    LOAN TO VALUE & INTEREST COVER RATIO 15 GOZ** RSA LTV (incl V&A)* Interest cover ratio (incl V&A) LTV* Interest cover ratio % times % times 50 8 60 8 7 7 50 40 6 6 40 55.4% 5 46.6% 5 30 37.9% 33.9% 44.4% 4 30 4 23.9% 20 3 3 20 2 2 10 3.2 2.8 3.2 10 2.4 1 2.2 1.9 1 0 0 0 0 Jun 13 Jun 12 Jun 11 Jun 13

  16. Slide 16: RSA Diversified Borrowings

    RSA DIVERSIFIED BORROWINGS 16 R'million Nominal value 16 000 14 249 14 000 13 613 Debt Capital 1 000 Market 7.0% 800 12 468 Traditional Unsecured 400 Debt Capital Bank Debt 2 000 21.1% 12 000 Market 24.3% 2 510 Debt Unsecured Capital 3 010 39.0% Market Unsecured CMBS 1 969 10 000 27.4% 37.8% 13.8% 2

  17. Slide 17: Capital Management

    CAPITAL MANAGEMENT 17 • The capital expenditure and acquisitions programme was mainly financed through the issue of equity: • R613 million raised via the DRIP in September 2012 • R857 million raised via the DRIP in March 2013 • R2,5 billion raised through placement in May 2013, in anticipation of th

  18. Slide 18: Operational Review

    OPERATIONAL REVIEW THE PLACE, Sandton

  19. Slide 19: South Africa

    SOUTH AFRICA BROOKLYN MALL, Pretoria

  20. Slide 20: RSA Portfolio Overview

    RSA PORTFOLIO OVERVIEW 20 R'million NET PROPERTY INCOME R'million PROPERTY PORTFOLIO (BY VALUE) 3 500 45 000 3 276 3 099 40 000 39 168 3 000 2 855 786 24% 21% 34 988 737 24% 35 000 8 042 32 495 2 500 683 24% 7 251 21% 30 000 6 841 21% 2 000 25 000 1 353 41% 16 211 41% 1 322 43% 1 500 1 188 42% 20 00

  21. Slide 21: Net Property Income Analysis RSA

    NET PROPERTY INCOME ANALYSIS RSA 21 Jun 2013 Jun 2012 Increase/ R’million R’million (Decrease) Gross property revenue 4 354 4 096 6.3% Retail 1 576 1 441 9.4% Office 1 776 1 712 3.7% Industrial 1 002 943 6.3% Property expenses (1 078) (997) 8.1% Retail (439) (401) 9.5% Office (423) (390) 8.5% Indust

  22. Slide 22: Key Performance Indicators RSA

    KEY PERFORMANCE INDICATORS RSA 22 Jun 2013 Jun 2012 Vacancies (%) 4.4 4.0 Total arrears (R’million) 29,9 32,6 Bad debts (R’million) 10,9 7,8 Average in force escalations (%) 8.0 8.1 Renewal success rate (%) 70.4 75.2 Weighted average renewal growth (%) 4.2 2.7 Weighted average future escalations on

  23. Slide 23: RSA - Retail

    RSA - RETAIL 23 • Turnover growth is in line with national benchmarks but is Jun 2013 Jun 2012 decelerating, especially in lower and middle market Size of portfolio: R’million R’million Net property income 1 137 1 040 • International retailer interest remains strong at prime shopping centres. Howeve

  24. Slide 24: RSA - Office

    RSA - OFFICE 24 • Net property income growth on total portfolio impacted by Jun 2013 Jun 2012 the sale of 13 properties for R545 million during the year at a Size of portfolio: R’million R’million profit of historical cost of R241 million Net property income 1 353 1 322 • Market conditions have rema

  25. Slide 25: RSA - Industrial

    RSA - INDUSTRIAL 25 • Sound performance considering the economic environment and Jun 2013 Jun 2012 negative sentiment Size of portfolio: R’million R’million • Low vacancy and arrear levels unlikely to continue in the future Net property income 786 737 o 354 000m² renewed in financial year Portfolio

  26. Slide 26: Australia – GOZ

    AUSTRALIA – GOZ TULLAMARINE, Victoria, Australia

  27. Slide 27: GOZ Portfolio Overview

    GOZ PORTFOLIO OVERVIEW 27 NET PROPERTY INCOME R'million PROPERTY PORTFOLIO (BY VALUE) R'million 1 400 16 000 15 063 1 260 14 000 13 118 1 200 12 000 1 000 7 863 52% 645 51% 906 10 000 800 6 968 53% 8 424 589 65% 8 000 600 554 6 000 6 027 72% 400 458 83% 4 000 7 200 48% 615 49% 6 150 47% 200 317 2 00

  28. Slide 28: Key Performance Indicators - GOZ

    KEY PERFORMANCE INDICATORS - GOZ 28 Jun 2013 Jun 2012 Vacancies (%) 0.4 0.3 Total arrears (R’million) 0,5 0,3 Average in force escalations (%) 3.1 3.2 Renewal success rate (%) - 100.0 Weighted average renewal growth (%) - 6.1 Weighted average future escalations on renewals (%) - 3.6 Number of employ

  29. Slide 29: Operational Review - GOZ

    OPERATIONAL REVIEW - GOZ 29 • AUD76,0 million distributable profit and distributable income per security 19,3 cps; up 8.6% from FY2012 Growing income • 18,3 cps distribution; up 4% from FY2012 (before withholding tax of 0,77 cps payable by international investors – Growhtpoint RSA) • Distribution de

  30. Slide 30: V&A Waterfront

    V&A WATERFRONT V&A WATERFRONT, Cape Town

  31. Slide 31: V&A Portfolio Overview (50%)

    V&A PORTFOLIO OVERVIEW (50%) 31 NET PROPERTY INCOME PROPERTY PORTFOLIO (BY VALUE) R'million R'million 350 6 000 324 5 549 39 12% 305 300 596 11% 4 950 36 12% 5 000 43 13% 501 9% 628 13% 250 43 373 14% 7% 461 9% 4 000 68 21% 1 009 330 7% 200 61 18% 20% 783 16% 3 000 150 54% 2 000 100 54% 174 165 3 07

  32. Slide 32: Key Performance Indicators – V&A (50%)

    KEY PERFORMANCE INDICATORS – V&A (50%) 32 Jun 2013 Jun 2012 Vacancies (%) 0.6 1.6 Total arrears (R’million) 19,9 19,1 Bad debts (R’million) 1,0 (1,8) Average in force escalations (%) 8.4 8.5 Renewal success rate (%) 88.6 83.7 Weighted average renewal growth (%) 7.5 2.7 Weighted average future escala

  33. Slide 33: Operational Review – V&A

    OPERATIONAL REVIEW – V&A 33 Retail • Retail vacancies at a record low of 0% • Continued strong retail sales growth of 16% year on year to June 2013, well in excess of inflation resulting in average trading densities in excess of R4 500/m2/month • New openings of Zara, Topshop, Moyo, Market on the Wh

  34. Slide 34: Operational Review – V&A (Cont'd)

    OPERATIONAL REVIEW – V&A (CONT’D) 34 Hotel • The hotel market is slowly starting to gather momentum. Over the last year, room occupancies and average room rates have grown year on year, however, they are still only now reaching 2008 levels Fishing and Industrial • Fishing and industrial revenue cont

  35. Slide 35: Property Investment Activities

    PROPERTY INVESTMENT ACTIVITIES NESTLÉ, Cape Town

  36. Slide 36: Property Investment Activities

    PROPERTY INVESTMENT ACTIVITIES 36 Annexures Retail Office Industrial RSA Total GOZ Total V&A Opening balance 13 145 14 592 7 251 34 988 13 118 48 106 4 950 Purchase price of acquisitions 3 & 22 13 435 44 492 748 1 240 - Selling price of disposals 4 &22 (180) (545) (144) (869) (688) (1 557) - Develop

  37. Slide 37: Sustainability & CSI

    SUSTAINABILITY & CSI ELLERINES, Cape Town

  38. Slide 38: Sustainability & CSI

    SUSTAINABILITY & CSI 38 • Nedbank Capital Sustainable Business Award winner for 2013 • Growthpoint has once again been included in the JSE SRI (Social Responsible Investment) Index • Excelling at the Carbon Disclosure Project (CDP) by achieving a Gold status score of 95% • Monitoring electricity usa

  39. Slide 39: Sustainability & CSI

    SUSTAINABILITY & CSI 39 2013 CSI Expenditure 2% Entrepreneurship 28% 40% Education Subsidies Infrastructure 6% Other 24% • Our key focus areas are education, entrepreneurship and infrastructure development, with a total CSI spend of R12 million • We support under resourced communities through infras

  40. Slide 40: REIT Conversion

    REIT CONVERSION MENLYN CORNER, Pretoria

  41. Slide 41: REIT Conversion

    REIT CONVERSION 41 Implication to Growthpoint • On 1 July 2013, Growthpoint converted from a PLS to a REIT, after approval was obtained from the JSE • The capital structure, comprising of a linked debenture and share, was delinked and the debenture was capitalised to equity. This simplifies the Grow

  42. Slide 42: REIT Conversion

    REIT CONVERSION 42 Benefits of Growthpoint being a REIT • Simplified capital structure • Abolition of capital gains tax arising from the disposal of properties • Certainty of the deduction of our distributions in the form of dividend to shareholders • More attractive investment for foreign investors

  43. Slide 43: Prospects

    PROSPECTS HITACHI, Johannesburg

  44. Slide 44: Prospects

    PROSPECTS 44 RSA • Higher inflation (6%), slower GDP growth (2%), labour unrest and countless strikes, The economy weak manufacturing output and increased unemployment all suggest a tough operating environment • Remain relatively robust, however will be negatively impacted by higher office Property

  45. Slide 45: Prospects (Cont'd)

    PROSPECTS (CONT’D) 45 GOZ • Inflation (2.4%) and unemployment (5.7%) appear under control however GDP growth The economy of about 2.5% is below the long term trend, impacted by weak consumer demand and residential property market • Remain solid, especially the industrial sector, however retail and o

  46. Slide 46: Prospects (Cont'd)

    PROSPECTS (CONT’D) 46 V&A Waterfront • The trading environment at the V&A remains very strong with Q2 2013 versus Q2 2012 turnovers increasing at over 19%, which is having a positive impact on trading Property fundamentals densities and rent/turnover ratios • Other key metrics including vacancies an

  47. Slide 47: Annexures

    ANNEXURES V&A WATERFRONT, Cape Town

  48. Slide 48: Content

    CONTENT 48 • Annexure 1 – GROWTHPOINT’S PROPERTY PORTFOLIO • Annexure 2 – SPLIT OF RSA PROPERTY PORTFOLIO • Annexure 3 – ACQUISITIONS RSA • Annexure 4 - DISPOSALS RSA • Annexure 5 – DEVELOPMENTS AND CAPITAL EXPENDITURE RSA • Annexure 6 – NON-CURRENT ASSETS HELD FOR SALE RSA • Annexure 7 - COMMITMENT

  49. Slide 49: Content (Cont'd)

    CONTENT (CONT’D) 49 • Annexure 18 – DETAILED BORROWINGS • Annexure 19 - DEBT EXPIRY PROFILE RSA • Annexure 20 - FIXED INTEREST RATE EXPIRY PROFILE FOR RSA BORROWINGS • Annexure 21 - SPLIT OF GOZ PROPERTY PORTFOLIO • Annexure 22 – ACQUISITIONS, DISPOSAL, DEVELOPMENTS AND COMMITMENT GOZ • Annexure 23

  50. Slide 50: Annexure 1 – Growthpoint's Property Portfolio

    ANNEXURE 1 – GROWTHPOINT’S PROPERTY PORTFOLIO 50 RSA Retail Office Industrial Total GOZ* V&A* Number of properties 43 120 230 393 44 1 GLA (m2) 942 501 1 151 079 2 176 887 4 270 467 886 975 193 873 Vacancy (m2) 34 414 90 249 65 055 189 718 3 641 1 146 Vacancy (%) 3.7 7.8 3.0 4.4 0.4 0.6 Valuation (R

  51. Slide 51: Annexure 2 – Split of RSA Property Portfolio

    ANNEXURE 2 – SPLIT OF RSA PROPERTY PORTFOLIO 51 Value Value 2% 4% 3% 21% 9% 38% 12% 50% Greater JHB 41% 20% Western Cape Retail Pretoria Office KwaZulu-Natal Industrial Eastern Cape GLA GLA 2% North West 3% 1% Other 22% 13% 8% 51% 55% 27% 18%

  52. Slide 52: Annexure 3 – Acquisitions RSA

    ANNEXURE 3 – ACQUISITIONS RSA 52 Purchase price Acquisitions Sector R’million Yield Pick ’n Pay Walmer, Port Elizabeth* Retail 12,7 * Menlyn Corner, Menlyn, Pretoria Office 209,7 9.2% Willowbridge Office Park, Bellville, Cape Town Office 121,8 9.0% Deloitte and Touche, Durban Office 103,8 8.1% 116 T

  53. Slide 53: Annexure 4 – Disposals RSA

    ANNEXURE 4 – DISPOSALS RSA 53 Selling Profit/ Profit/ price (loss) on (loss) on Disposals R’million Sector cost book value Yield Atlas Mall Shopping Centre, Boksburg 58,0 Retail 27,1 (0,1) 7.8% Northcliff Square Shopping Centre, Northcliff 40,2 Retail 0,2 0,2 9.3% Heritage Market, Durban 75,0 Retail

  54. Slide 54: Annexure 5 – Developments and Capital Expenditure RSA

    ANNEXURE 5 – DEVELOPMENTS AND CAPITAL EXPENDITURE RSA 54 Developments and capital expenditure Sector R’million Brooklyn / Design Square (75%), Brooklyn, Pretoria Retail 57,0 Walmer Park, Port Elizabeth Retail 39,2 Other Retail below R30,0 million Retail 100,8 44 On Grand Central, Midrand Office 75,0

  55. Slide 55: Annexure 6 – Non-Current Assets Held for Sale RSA

    ANNEXURE 6 – NON-CURRENT ASSETS HELD FOR SALE RSA 55 Fair value Jun 2013 Properties held for sale Sector R’million Gustav Voigts, Windhoek, Namibia, Retail 220,0 Arcadia Centre, Pretoria Retail 68,6 Centurion Southlake 1 & 2, Centurion, Pretoria Retail 61,0 Cowey Park, Durban Office 67,1 140 Daisy S

  56. Slide 56: Annexure 7 – Commitments RSA

    ANNEXURE 7 – COMMITMENTS RSA 56 Commitments Sector R' million Developments Walmer Park, Port Elizabeth Retail 70,1 Brooklyn/Design Square (75%), Brooklyn, Pretoria Retail 68,2 Kolonnade (50%), Montana Park, Pretoria Retail 30,3 Brookfield Office Park, Brooklyn, Pretoria Office 34,9 Allen Road, Eland

  57. Slide 57: Annexure 8 – Top 10 RSA Retail Properties by Value

    ANNEXURE 8 – TOP 10 RSA RETAIL PROPERTIES BY VALUE 57 Value Fair value Building R’million GLA m2 1 Brooklyn/Design Square (75%), Brooklyn, Pretoria 1 797 55 521 2 Waterfall Mall, Rustenburg 1 201 49 274 35.0 % 3 Lakeside Mall, Benoni 1 135 67 289 4 La Lucia Mall, La Lucia, Durban 962 36 423 65.0 % 5

  58. Slide 58: Annexure 9 – Top 10 RSA Retail Tenants

    ANNEXURE 9 – TOP 10 RSA RETAIL TENANTS 58 Gross Monthly % of Gross Rental Monthly Retail % of Total Retail R’000 Rental GLA m2 Retail GLA 1 Edcon Holdings (Pty) Ltd 9 346 7.6 87 724 9.7 2 The Foschini Group Ltd 6 755 5.4 32 776 3.6 3 Pick ’n Pay Stores Ltd 5 813 4.7 76 740 8.5 4 Mr Price Group Ltd 5

  59. Slide 59: Annexure 10 – Top 10 RSA Office Properties by Value

    ANNEXURE 10 – TOP 10 RSA OFFICE PROPERTIES BY VALUE 59 Fair value Value Building R’million GLA m2 1 Investec, Sandton 2 009 70 945 2 The Place, Sandton 943 34 020 3 Constantia Office Park, Roodepoort 936 71 643 41.0 % 4 Growthpoint Business Park, Midrand 532 69 623 59.0 % 5 Montclare Place, Claremon

  60. Slide 60: Annexure 11 – Top 10 RSA Office Tenants

    ANNEXURE 11 – TOP 10 RSA OFFICE TENANTS 60 Gross Monthly % of Gross Rental Monthly % of Total Office R’000 Office Rental GLA m2 Office GLA 1 Investec Bank Ltd 20 075 13.8 85 134 8.0 2 Netcare Hospitals (Pty) Ltd 3 314 2.3 16 913 1.6 3 Ernst & Young Services 3 274 2.2 11 013 1.0 4 Business Connexion

  61. Slide 61: Annexure 12 – Top 10 RSA Industrial Properties by Value

    ANNEXURE 12 – TOP 10 RSA INDUSTRIAL PROPERTIES BY VALUE 61 Fair value Value Building R’million GLA m2 1 Growthpoint Industrial Estate, Meadowdale, Germiston 379 61 246 2 Adcock Ingram, Midrand 199 21 536 20.1% 3 Hilltop Industrial Estate, Elandsfontein 184 69 571 4 Central Park, Elsiesriver, Cape To

  62. Slide 62: Annexure 13 – Top 10 RSA Industrial Tenants

    ANNEXURE 13 – TOP 10 RSA INDUSTRIAL TENANTS 62 Gross % of Gross Monthly Monthly % of Total Rental Industrial Industrial Industrial R’000 Rental GLA m2 GLA 1 The Bidvest Group Ltd 2 773 3.4 53 486 2.5 2 Ellerine Furnishers (Pty) Ltd 2 317 2.8 46 404 2.2 3 Adcock Ingram Holdings Ltd 1 850 2.2 31 167 1

  63. Slide 63: Annexure 14 – GLA and Vacancy Reconciliation RSA

    ANNEXURE 14 – GLA AND VACANCY RECONCILIATION RSA 63 Total GLA (m2) Vacant area (m2) Vacancy Balance at 1 Jul 2012 4 352 098 172 761 4.0% GLA adjustments (12 535) 15 Disposals (143 353) (10 514) Acquisitions 11 318 57 Developments and extensions 62 939 - Leases expired in the year* - 860 142 Renewals

  64. Slide 64: Annexure 15 – Lease Expiry by Sector RSA (% of GLA)

    ANNEXURE 15 – LEASE EXPIRY BY SECTOR RSA (% OF GLA) 64 % Vacant 3.7 7.8 3.0 TOTAL 4.4 Monthly 6.5 3.5 3.6 TOTAL 4.2 By Jun 14 17.8 17.7 22.2 TOTAL 20.0 By Jun 15 19.7 15.5 18.3 TOTAL 17.9 By Jun 16 14.1 16.6 22.0 TOTAL 18.8 By Jun 17 7.9 12.0 12.7 TOTAL 11.5 By Jun 18 13.0 11.4 8.0 TOTAL 10.0 Jul 20

  65. Slide 65: Annexure 16 – Lease Expiry by Sector RSA (% of Gross Monthly Rental)

    ANNEXURE 16 – LEASE EXPIRY BY SECTOR RSA (% OF GROSS MONTHLY RENTAL) 65 % Vacant 3.6 6.5 3.0 TOTAL 4.6 Monthly 6.3 3.0 3.6 TOTAL 4.3 By Jun 14 21.0 17.0 21.5 TOTAL 19.5 By Jun 15 19.7 14.2 20.6 TOTAL 17.6 By Jun 16 16.8 14.3 19.8 TOTAL 16.4 By Jun 17 8.5 11.1 10.1 TOTAL 10.0 By Jun 18 13.5 12.6 9.4

  66. Slide 66: Annexure 17 – Linked Units Issued and Unitholders Holding >2%

    ANNEXURE 17 – LINKED UNITS ISSUED AND UNITHOLDERS HOLDING > 2% AT JUNE 2013 66 Linked units Opening balance 1 Jul 2012 1 743 080 918 Distribution re-investment (Sep 2012) 24 522 641 Distribution re-investment (Mar 2013) 33 954 769 Capital raising (May 2013) 90 000 000 Closing balance 30 Jun 2013 1 8

  67. Slide 67: Annexure 18 – Detailed Borrowings

    ANNEXURE 18 – DETAILED BORROWINGS 67 Jun 2013 Jun 2012 RSA Secured/Unsecured Refinance Date R’million R’million Commercial paper - 3 months Unsecured Jul 2013 400 800 Nedbank Unsecured Sep 2013 800 1 000 Standard Bank Secured Feb 2014 800 800 China Construction Bank Secured Sept 2014 - 250 ABSA Secu

  68. Slide 68: Annexure 19 – Debt Expiry Profile RSA

    ANNEXURE 19 – DEBT EXPIRY PROFILE RSA 68 Debt expiry profile at 30 June 2013 per 12 month period % 30 25 25 20 16 15 15 14 10 10 10 6 5 4 0

  69. Slide 69: Annexure 20 – Fixed Interest Rate Expiry Profile for RSA Borrowings

    ANNEXURE 20 – FIXED INTEREST RATE EXPIRY PROFILE FOR RSA BORROWINGS 69 Fixed interest rate expiry % at 30 June 2013 per 12 month period % 20 19 18 18 17 16 14 12 12 10 10 8 6 6 6 4 4 4 4 2 0

  70. Slide 70: Annexure 21 – Split of GOZ Property Portfolio

    ANNEXURE 21 – SPLIT OF GOZ PROPERTY PORTFOLIO 70 Value Value 2% 3% 7% 11% 39% 48% 52% 9% Queensland 29% Victoria Industrial South Australia Office New South Wales GLA GLA 1% Western Australia 2% 17% 9% Australian Capital 21% 6% Territory Tasmania 12% 83% 49%

  71. Slide 71: Annexure 22 – Acquisitions, Disposal, Developments and Commitment GOZ

    ANNEXURE 22 – ACQUISITIONS, DISPOSAL, DEVELOPMENTS AND COMMITMENT GOZ 71 Acquisitions Sector R’million AUD’million Yield 51 – 65 Lenore Lane, Erskine Park, NSW Industrial 215,1 23,9 8.0% 6 – 7 John Morphett Place, Erskine Park, NSW Industrial 344,1 38,2 8.2% 27 – 49 Lenore Lane, Erskine Park, NSW In

  72. Slide 72: Annexure 23 – Top 10 GOZ Properties by Value

    ANNEXURE 23 – TOP 10 GOZ PROPERTIES BY VALUE 72 Fair value Value GOZ Sector R’million GLA m2 1 70 Distribution Street, Larapinta, QLD Industrial 1 490 75 425 2 2 Horrie Miller Drive, Perth Airport, WA Industrial 1 039 80 374 3 333 Ann Street, Brisbane, QLD Office 993 16 554 54.1% 4 219 - 247 Pacific

  73. Slide 73: Annexure 24 – Top 10 GOZ Tenants

    ANNEXURE 24 – TOP 10 GOZ TENANTS 73 Gross Monthly % of Gross GOZ Rental R’000 Monthly Rental GLA m2 % of Total GLA 1 Woolworths Ltd 32 950 27.9 406 941 46.1 2 GE Capital Finance Australasia 8 070 6.8 24 910 2.8 3 Linfox Australia 6 553 5.5 57 656 6.5 4 Commonwealth of Australia 5 566 4.7 15 398 1.7

  74. Slide 74: Annexure 25 – Net Property Income Analysis GOZ

    ANNEXURE 25 – NET PROPERTY INCOME ANALYSIS GOZ 74 Jun 2013 Jun 2012 Increase/ R’million R’million (Decrease) Gross property revenue 1 419 1 011 40.4% Property expenses (159) (105) 51.4% Net property income 1 260 906 39.1% Adjustments: (477) (147) Foreign exchange impact (144) - Acquisitions & develo

  75. Slide 75: Annexure 26 – GLA and Vacancy Reconciliation GOZ

    ANNEXURE 26 – GLA AND VACANCY RECONCILIATION GOZ 75 Total GLA Vacant area (m2) (m2) Vacancy Balance at 1 Jul 2012 900 676 2 291 0.3% GLA adjustments 521 - Disposal (42 826) - Acquisitions 28 604 - Leases expired in the year* - 3 429 Renewals of expired leases** - - New letting of vacant space - (3 4

  76. Slide 76: Annexure 27 – Lease Expiry by Sector GOZ

    ANNEXURE 27 – LEASE EXPIRY BY SECTOR GOZ 76 % % of GLA % % of gross monthly rental 100 100 86 89 80 80 65 60 59 60 40 40 20 13 20 8 9 3 8 12 13 3 7 4 4 1 5 4 5 1 1 0 0 Office Industrial

  77. Slide 77: Annexure 28 – Split of V&A Property Portfolio

    ANNEXURE 28 – SPLIT OF V&A PROPERTY PORTFOLIO 77 Property portfolio by value Property portfolio GLA Retail 11% Retail Office 22% 23% 9% Office Fishing & Industrial 7% Fishing & Industrial 55% Hotel Hotel 18% Bulk 32% 23% Developed vs undeveloped by value Net property income 11% Developed 10% Retail

  78. Slide 78: Annexure 29 – Developments and Commitments V&A (50%)

    ANNEXURE 29 – DEVELOPMENTS AND COMMITMENTS V&A (50%) 78 Developments Sector R’million Allan Gray Office 170,2 Other below R30,0 million 56,3 Total 226,5 Commitments for Developments R’million Residential developments, Breakwater & Portswood Residential 112,5 Allan Gray Office 51,4 Pick 'n Pay develo

  79. Slide 79: Annexure 30 – Top 10 V&A Tenants (100%)

    ANNEXURE 30 – TOP 10 V&A TENANTS (100%) 79 % of Gross Gross Monthly Monthly % of Total V&A Rental R’000 Rental GLA m2 GLA 1 The Board of Executors 3 317 4.5 25 433 13.2 2 Allan Gray Ltd 3 096 4.2 11 764 6.1 3 Legacy Hotels 2 359 3.2 16 226 8.4 4 BP Southern Africa 2 285 3.1 9 500 4.9 5 Sun Internati

  80. Slide 80: Annexure 31 – Net Property Income Analysis V&A (50%)

    ANNEXURE 31 – NET PROPERTY INCOME ANALYSIS V&A (50%) 80 Jun 2013 Jun 2012 Increase/ R’million R’million (Decrease) Gross property revenue 442 412 7.3% Property expenses (118) (107) 10.3% Net property income 324 305 6.2% The distribution received from the V&A Waterfront is R312m (June 2012: R293m), w

  81. Slide 81: Annexure 32 – GLA and Vacancy Reconciliation V&A (50%)

    ANNEXURE 32 – GLA AND VACANCY RECONCILIATION V&A (50%) 81 Total GLA (m2) Vacant area (m2) Vacancy Balance at 1 Jul 2012 192 085 3 088 1.6% GLA adjustments (79) (79) Developments and extensions 1 867 - Leases expired in the year* - 13 620 Renewals of expired leases** - (12 073) New letting of vacant

  82. Slide 82: Annexure 33 – Lease Expiry by Sector V&A

    ANNEXURE 33 – LEASE EXPIRY BY SECTOR V&A 82 % of GLA % of gross monthly rental % 100 100 100 100 80 78 80 74 60 60 46 44 41 40 40 33 26 22 16 14 17 16 15 20 16 1312 20 14 14 14 10 11 6 13 10 5 5 6 3 5 1 0 0 Retail Office Fishing & Industrial Hotel

  83. Slide 83: Thank You

    THANK YOU MONTCLARE PLACE, Cape Town

Growthpoint Properties — FY2013 Earnings Presentation on 6ix