Hyprop Investments Limited · JSE:HYP
Hyprop Investments — FY2015 Earnings Presentation
21 slides from Hyprop Investments's earnings presentation, 2015
Slide 1: Annual Results for the year ended 30 June 2015
ANNUAL RESULTS for the year ended 30 June 2015 STRATEGIC & OPERATIONAL OVERVIEW Hyde Park Corner, Johannesburg, Gauteng 2 1
Slide 2: Financial Highlights; Distribution Growth
FINANCIAL HIGHLIGHTS 30 June 2015 30 June 2014 Change Distribution 543,0 cps 472,0 cps 15,0% Total return 59,0% 8,0% Total expense to income ratio 36,0% 37,3% (3,3%) Market capitalisation R29,4bn R19,3bn 52,2% Total assets R28,9bn R26,9bn 7,4% Loan to value 22,9% 26,6% NAV (per share) R89,04 R76,02
Slide 3: Share Price Performance; Portfolio Management
SHARE PRICE PERFORMANCE 1,6 Hyprop SAPY 1,5 June June 2015 2014 1,4 % shares traded 73,0% 50,4% % offshore shareholders 25,0% 8,5% 1,3 1,2 1,1 Q4: 92,8 million* 1,0 Q3: 41,0 million* Q1: 28,5 million* Q2: 15,3 million* 0,9 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2014 2014 2014 2014 2014 2014
Slide 4: Company Structure
COMPANY STRUCTURE SOUTH AFRICA Hyprop Investments Limited 100% owned Co-owned Held for sale/sold Clearwater Mall Canal Walk Willowbridge (80%) Rosebank Mall Somerset Value Mart The Glen Somerset Mall (75,15%) Offices: Glenfield Woodlands Boulevard Glenwood Lakefield Hyde Park Corner Stoneridge
Slide 5: Investment Profile
INVESTMENT PROFILE Investments Distributable income Held for sale R1,2bn Held for sale R104,8m Sub-Saharan Africa Properties sold R51,4m (excluding SA) R2,3bn Sub-Saharan Africa 2,9% 4,3% (excluding SA) 2,4% 5,8% 8,2% R42,4m* 87,5% 88,9% Core South African Core South African portfolio portfolio R25,
Slide 6: Operating Performance; Trading Overview
OPERATING PERFORMANCE Occupancy rate improved to 98,0% (June 2014: 97,6%) Property cost to income ratio reduced to 33,6% (June 2014: 34,4%) Arrears R19,4 million ‒ 0,6% of rental income (June 2014: R19,2m ‒ 0,5% of rental income) Low impact from load shedding Strong performance from Rosebank Mall Im
Slide 7: Vacancies; Leasing Terms
VACANCIES Vacancies 30 June 2013 30 June 2014 30 June 2015 Retail 2,1% 1,2% 1,3% Offices 8,1% 13,8% 8,3% Total 2,7% 2,4% 2,0% 20% Retail Offices Total 15% 13,8% 10% 8,1% 8,3% 5% 2,1% 2,7% 2,4% 2,0% 1,2% 1,3% 0% 30 Jun 2013 30 June 2014 30 June 2015 13 LEASING TERMS 12% Rental growth Contractual esca
Slide 8: Leasing Activity; Lease Expiry Profile
LEASING ACTIVITY Rental Contractual % of total Area growth escalation No. of Leasing portfolio m² % % leases Retail 20,3% 143 240 8,1% 8,2% 486 Offices 43,9% 33 111 2,5% 8,1% 90 Total 22,6% 176 350 7,6% 8,2% 576 15 LEASE EXPIRY PROFILE 2015 / 2016 Total % Rentable rentable Area area of Retail area m
Slide 9: Developments
DEVELOPMENTS Focus on continuous improvements /refurbishments – R180m for 2016 Woolworths extensions: Canal Walk completed within budget Somerset Mall to be completed in October 2015 Clearwater Mall refurbishments and extensions to accommodate international fashion brands Including H&M, River
Slide 10: Income Producing Properties; Development Properties
INCOME PRODUCING PROPERTIES 12 months 12 months Hyprop's 30 June June 2015 June 2014 Rentable effective 2015 Distributable Distributable area shareholding Investment earnings* earnings* m² % R'000 R'000 R'000 AttAfrica (Mauritius) Accra Mall (Accra, Ghana) 19 000 17,6% 229 659 7 726 6 525 West Hills
Slide 11: Currency
CURRENCY Performance of currencies over one year against USD 1,3 30% 23% 1,2 20% 1,1 4% 1,0 0,9 0,8 SA Rand Zambian Kwacha Ghanian Cedi Nigerian Niara 0,7 One year 21 FINANCIAL RESULTS The Glen, Johannesburg, Gauteng 22 11
Slide 12: Net Income; Drivers of Growth
NET INCOME YEAR-ON-YEAR CHANGE R’000 1 500 000 1 400 000 43 370 7 290 86 363 1 319 619 (37 265) (15 694) 1 300 000 (11 475) (2 091) 100 521 1 200 000 1 148 600 1 100 000 1 000 000 30 Jun Existing Rosebank Somerset Sub- Sycom Net Properties Other 30 June 2014 portfolio Mall Mall Saharan interest sold
Slide 13: Income Statement; Balance Sheet
INCOME STATEMENT EXTRACTS 30 June 2015 30 June 2014 Rm Rm Revenue 2 617 2 392 Investment property 2 617 2 355 11,2% Listed investments 37 Property expenses (865) (821) 5,4% Net property income 1 752 1 571 11,5% Other operating expenses (58) (56) 3,9% Operating income 1 694 1 515 11,8% Investments in
Slide 14: Property Valuations; Debt Management
PROPERTY VALUATIONS SOUTH AFRICAN PORTFOLIO Hyprop % change Size share (from Value Average Category m² Rm June 2014) R/m2 yield % Shopping centres 642 978 23 791 13,0% 40 816 6,8% Value centres* 102 709 1 927 2,3% 18 762 8,3% Stand-alone offices 34 386 509 11,3% 14 796 9,1% Total 780 072 26 226 12,1
Slide 15: Sources of Funding; Cost of Funding
SOURCES OF FUNDING R million 2 327 35% Bank facilities (SA) 3 509 49% 2 193 33% Bank facilities (USD) 1 393 19% 30 June 2015 2 172 32% 30 June 2014 DCM funding (SA) 2 297 32% % of total debt 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 29 COST OF FUNDING Average interest rate 30 June 2015 30 June
Slide 16: Prospects
PROSPECTS Canal Walk, Cape Town, Western Province 31 PROSPECTS Low GDP growth – few opportunities in SA Emerging market opportunities Refurbishments and tenant mix improvements Disposal of non-core properties Distribution forecast - approximately 10% The Glen and Woodlands Boulevard 32 16
Slide 17: Track Record
APPENDICES Rosebank Mall, Johannesburg, Gauteng 33 TRACK RECORD Rbn LTV % 32 60% Investment property 28,6 29,4 28 26,4 Market cap 24 45% LTV % 20,2 20 18,717,7 19,0 19,3 17,4 16 12,9 30% 12 26,6% 8,7 9,4 9,5 26,2% 23,1% 22,9% 22,9% 6,9 7,5 7,7 7,0 7,6 8 15% 4 13,0% 12,6% 8,9% 0 3,6% 0% 2007 2008 200
Slide 18: Maturity Profile; Debt Maturity Profile
MATURITY PROFILE FIXED RATES AND SWAPS Rm Average maturity 5,2 years 2 500 2 000 1 914 1 500 1 289 1 200 1 000 1 000 500 400 318 200 - June 16 June 17 June 18 June 19 June 20 June 21 June 22 June 23 June 24 35 DEBT MATURITY PROFILE BANK FACILITIES AND DCM Rm Average maturity 3,2 years 1 800 SA bank
Slide 19: Revenue Spread; Gross Rent to Turnover
REVENUE SPREAD 12 MONTHS June 2015 June 2014 37 % GROSS RENT TO TURNOVER Deterioration % Gross rent to turnover Improvement 11,0% 10,0% 1% 2% Portfolio average: +7,1% (2014: +6,9%) 2% 9,0% 9,2% 0% 8,8% 8,7% 8% 8,0% 8,3% 7,9% 1% 1% 7,0% 3% 7,0% 7,0% 6,0% 6,4% 9% 5,0% 5,5% 0% 4,0% 4,4% 3,0% 2,0% 1,0%
Slide 20: Trading Density; Top 8 Properties by Value
TRADING DENSITY Per month (R/m²) 4 500 15% 4 000 4 023 Average portfolio growth: +7,4% (2014: +7,1%) 3 500 6% 7% 3 000 3 147 1% 2 992 8% 8% 2 850 7% 2 500 2 695 2 632 6% 4% 2 488 2 337 2 331 2 000 9% 1 918 1 500 1 000 500 0 Hyde Park Canal Walk Somerset Mall Clearwater Mall Willow Bridge The Glen Wo
Slide 21: Top Properties by Value (cont.); Disclaimer
TOP 8 PROPERTIES BY VALUE (cont.) The Glen Somerset Mall (75,15% undivided share) Hyde Park Corner CapeGate Regional Region Cape Town Region Johannesburg Region Johannesburg Region Cape Town Valuation (Rm) 2 450 000 Valuation (Rm) 2 329 830 Valuation (Rm) 2 009 000 Valuation (Rm) 1 534 000 Total ren