Texton Property Fund Limited · JSE:TEX
Texton Property Fund — FY2020 Earnings Presentation
25 slides from Texton Property Fund's earnings presentation, 2020
Slide 1: Year-End Results Presentation 30 June 2020
YEAR-END RESULTS PRESENTATION 30 JUNE 2020
Slide 2: Company Overview
COMPANY OVERVIEW
Slide 3: 2020 Headlines
2020 HEADLINES South Africa United Kingdom • Challenging macros exacerbated by Covid-19 • 97% collection rate during Covid-19 lockdown • Increase in vacancy to 12,7% • 100% of wholly owned portfolio is let • 90% of expiring GLA re-let • Weight average lease expiry profile of 9,23 years • 90% collect
Slide 4: Covid-19 Reaction
COVID-19 REACTION Employees • No retrenchments • No salary cuts • Board decreased salaries and fees by 30% Tenants • Rental relief to provided tenants in the form of discounts and deferrals • Relief was considered on a case by case basis to support liquidity needs Suppliers • Continued to support ou
Slide 5: Distributable Earnings and Dividend
DISTRIBUTABLE EARNINGS AND DIVIDEND 30 Jun 2020 30 Jun 2019 R’000 R’000 Variance Revenue 521 905 558 025 -6,5% Impairment losses recognised on tenant debtors (27 595) 1 408 -2 059,9% Property expenses (183 780) (193 337) 4,9% Profit/(Loss) from joint venture 34 711 (1 158) 3 097,5% Non-cash items in
Slide 6: Net Asset Value
NET ASSET VALUE Net asset Foreign Cash Fair value Fair value Fair value Dividend Tax Net asset value as at exchange generated movements movements movements paid paid value as at 30 June 2019 impact from – cross – investment – other 30 June 2020 operations currency property swap TEXTON PROPERTY FUND
Slide 7: SA Portfolio Overview
SA PORTFOLIO OVERVIEW Number of GLA properties Asset value Vacancy WALE (years) 285 308m² 44 R2,5bn 12.7% 3.20 June 2019 June 2019 June 2019 June 2019 June 2019 287 743 45 R2.6bn 10.8% 2.96 Office 178 077m² 36 R1.9bn 12,5% 3.31 Retail 32 547m² 3 R366m 13,0% 2.82 Industrial 74 684m² 5 R216m 13,2% 3.4
Slide 8: South Africa Performance
SOUTH AFRICA PERFORMANCE NOI breakdown (Rm) South African lease expiry profile (%) 500 35 435.6 447.6 29.7 30 400 333.6 24.0 331.6 25 21.1 21.4 300 260.6 18.9 228.4 20 15.7 199.7 12.7 14.0 200 175.2 15 11.2 10.1 10 8.1 6.6 6.5 100 62.8 71.1 41.2 42.9 31.3 38.2 5 21.9 22.7 0 0 Office Industrial Retai
Slide 9: UK Portfolio Overview
UK PORTFOLIO OVERVIEW Number of GLA properties Asset value Vacancy WALE (years) 60 634m² 8 £58.29m 0% 9.23 June 2019 June 2019 June 2019 June 2019 June 2019 88,311 9 £70.45 0% 8.9 Office 5 360m² 1 £8.77m 0% 6,41 Retail 7 991m² 3 £14.08m 0% 8,03 Industrial 47 283m² 4 £35.44m 0% 10,16 TEXTON PROPERTY
Slide 10: United Kingdom (Wholly Owned) Performance
UNITED KINGDOM (WHOLLY OWNED) PERFORMANCE NOI breakdown (Rm) UK lease expiry profile (%) 120 110.4 100 93.0 94.0 105.5 100 80 86.3 82.1 80 60 60 44.9 42.8 42.2 38.7 40.7 37.3 40 40 29.3 26.8 28.7 25.4 20 14.8 13.3 20 7.0 6.0 0 0 Office Industrial Retail Total Vacant Jun 2021 Jun 2022 Jun 2023 Jun 20
Slide 11: UK Portfolio – Broad Street Mall 50% Overview
UK PORTFOLIO – BROAD STREET MALL 50% OVERVIEW Number of GLA properties Asset value Vacancy WALE (years) 18 414m² 1 £66.90m 10.7% 7.83 June 2019 June 2019 June 2019 June 2019 June 2019 18 414 1 £64.8m 18.9% 6,61 Office 3 531m2 2* £16.5m 10.26% 7.25 Retail 14 884m2 1 £37.62m 10.81% 8.01 Residential 42
Slide 12: Broad Street Mall Headlines
BROAD STREET MALL HEADLINES Shopping center Office • 77,0% and 71,2% of invoiced rental received • Major letting deal with Co-space (serviced offices) for Q2 and Q3 respectively. UK average of 56% • 10-year lease • 2 retail casualties as a result of pandemic • Serviced office which is due to open Oc
Slide 13: Update on Property Disposals
UPDATE ON PROPERTY DISPOSALS Number of R’000 properties Transferred 20 000 2 Unconditional 154 500 5 Under offer 135 604 5 Marketing for sale 291 189 4 Total 601 293 16 TEXTON PROPERTY FUND LIMITED YEAR-END RESULTS PRESENTATION 30 JUNE 2020 13
Slide 14: Financial Summary
FINANCIAL SUMMARY
Slide 15: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION 30 Jun 2020 30 Jun 2019 R’000 R’000 Assets Non-current assets 3 416 932 3 578 646 Investment property 3 149 057 3 291 916 Property, plant and equipment 3 236 1 911 Tenant Installation 6 089 11 448 Investment in joint venture 252 272 206 094 Other non-current assets 6
Slide 16: Valuations
VALUATIONS % of portfolio 2020 2019 Change % change SA internally valued 37,4% 934 700 977 100 (42 400) -4,3% SA externally valued 49,5% 1 234 800 1 213 000 21 800 1,8% SA properties held for sale 13,1% 326 492 373 900 (47 408) -12,7% Total SA properties 100,0% 2 495 992 2 564 000 (68 008) -2,7% UK
Slide 17: Debt Maturity Profile and Group Borrowings
DEBT MATURITY PROFILE AND GROUP BORROWINGS South Africa United Kingdom Total Value Value Value Debt maturity profile R’000 % expiring R’000 % expiring R’000 % expiring 2021 281 594 25% 161 394 19% 442 986 22% 2022 149 130 13% 149 130 7% 2023 702 271 62% 702 271 35% 2024 - 2025 702 969 81% 702 969 35
Slide 18: Treasury and Hedging Summary
TREASURY AND HEDGING SUMMARY Cross currency interest rate swap Expiry R’000 GBP’000 02 Sep 2021 600 000 30 801 Interest rate swaps South Africa Funder Nominal amount (R’000) Maturity date Swap rate Swap reference Standard Bank 225 000 May 2021 7,40% 3M JIBAR Standard Bank 200 000 Nov 2020 7,19% 3M J
Slide 19: Net Property Income per Geographic Segment
NET PROPERTY INCOME PER GEOGRAPHIC SEGMENT South Africa United Kingdom Total Jun Jun Jun Jun Jun Jun 2020 2019 2020 2019 2020 2019 R’000 R’000 % change R’000 R’000 % change R’000 R’000 % change Contractual revenue 338 931 349 469 -3,0% 86 320 110 427 -21,8% 425 251 459 896 -7,5% Recoveries 96 654 98
Slide 20: Appendices
APPENDICES
Slide 21: Consolidated Portfolio at a Glance
CONSOLIDATED PORTFOLIO AT A GLANCE Geographical spread Geographical spread Sector split Sector split by GLA by value by GLA by value Gauteng 221 298m² Gauteng R1 815m Office 183 437m² Office R1 960m Western Cape 37 189m² Western Cape R445m Retail 58 952m² Retail R1 738m Kwa-Zulu-Natal 15 670m² Kwa-Z
Slide 22: Statement of Comprehensive Income
STATEMENT OF COMPREHENSIVE INCOME 30 Jun 2020 30 Jun 2019 R’000 R’000 Investment property income 521 905 558 025 Straight line rental adjustment (2 720) (2 360) Revenue 519 185 555 665 Impairment losses recognised on tenant debtors (27 595) 1 505 Property expenses (183 780) (193 434) Total property
Slide 23: Vacancy Profile
VACANCY PROFILE Overall Office Retail Industrial June 2020 11,0% 6,1% 2,3% 2,7% March 2020 8,7% 6,3% 1,6% 0,7% December 2019 9,0% 12,7% 11,3% 2,4% September 2019 8,7% 12,2% 12,2% 3,8% June 2019 9,2% 10,7% 10,7% 4,6% 15% 11.0% 9.2% 8.7% 9.0% 8.7% 10% 5% 0% Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020
Slide 24: Key Metrics
KEY METRICS 30 Jun 2020 30 Jun 2019 R’000 R’000 Variance Tenant retention 90.50% 80,80% 9,7% Vacancy rate 11,04% 9,20% -1,8% Loan to Value ^ 46,20% 47,20% -1,0% Value R'000 4 022 110 4 064 689 -1,0% Loan value R'000 1 855 164 1 917 228 -3,2% Net asset value cents per share 584.27 614,05 -4,8% Lease
Slide 25: Questions
QUESTIONS WWW.TEXTON.CO.ZA