Redefine Properties Limited · JSE:RDF

Redefine Properties — FY2021 Earnings Presentation

102 slides from Redefine Properties's earnings presentation, Aug 31, 2021

  1. Slide 1: Looking beyond

    Looking beyond Group annual results for the year ended 31 August 2021 1

  2. Slide 2: Focusing on what matters most

    Focusing on what matters most Outcomes arising from the execution of our strategic priorities Simplified asset Optimised operational Embraced the hybrid Reduced balance sheet Resumed paying platform and reduced efficiency to mitigate workforce through risk by significant dividends exposure to multip

  3. Slide 3: Growing reputation

    GR Growing reputation Adopting sustainable business practices Group annual results for the year ended 31 August 2021 3 3

  4. Slide 4: Key outcomes for 2021

    Key outcomes for 2021 GR Harnessing the power of Redefine to contribute to a more sustainable and equitable world through tangible targets Environmental Social Governance → Achieved the largest bulk → Benefited significantly from → Winner of EY’s 2021 Green Star existing building joining the UN Glob

  5. Slide 5: Stakeholder influence

    Positioning Redefine to contribute to a more inclusive operating context GR Living in an age of intersecting crises has disrupted the business-as-usual economic model Key stakeholders Stakeholder goal High Align engagement High engagement Tenants Differentiated provider of relevant space Involve Col

  6. Slide 6: Looking to the future we want to create

    Looking to the future we want to create GR Contributing to the SDGs and embedding ESG Between stimulus and response our values guide 2022 key focus areas how we choose to react → Focus on diversity in our operations → Introduce a climate resilience framework → Embed environmental, social and governa

  7. Slide 7: Investing strategically

    IS Investing strategically Creating smart and sustainable spaces Group annual results for the year ended 31 August 2021 7 7

  8. Slide 8: Key outcomes for 2021

    Key outcomes for 2021 IS Advancing our strategy to simplify and improve the quality of the property asset platform Uses of capital of R8.0 billion Property assets under Net debt repaid Property asset disposals 4 830 management valued at realised R5.0 billion Cash 1 124 R72.9 billion Development acti

  9. Slide 9: Local portfolio profile

    Local portfolio profile IS A sizeable, well-diversified and high-quality portfolio Impact of portfolio repositioning Carrying value of R # Total GLA 4.3 million m2 properties R59.1 billion 25 000 327 315 302 350 (FY20 | 4.4 million m2) 296 (FY20 | R64.0bn) 272 20 000 300 15 854 14 447 250 14 382 13

  10. Slide 10: Local portfolio key outcomes

    Local portfolio key outcomes IS A challenging operating compounded by evolving user needs Weighted average exit cap rate per sector (core portfolio) Portfolio revaluation Active vacancy reduced Industrial 9.3% of -2.7% to 7.1% (FY20 | -10.2%) (FY20 | 7.3%) Specialised 9.0% Offices 8.8% Completed thr

  11. Slide 11: Local retail portfolio overview

    Local retail portfolio overview IS Recovery continues but lockdown regulations and civil unrest is disruptive Contribution to vacancy by type Carrying value Building total 68 12.1% (FY20 | 71) R24.4 billion (FY20 | R25.7bn) Number of tenants 2 786 24.8% (FY20 | 3 006) Vacancy by type 23.3% Super reg

  12. Slide 12: Local office portfolio overview

    Local office portfolio overview IS Need for collaboration, continuity and cohesion will shape the office market Contribution to vacancy by grade Vacancy by node Carrying value Building total 104 39.3% 23.2% Sandton: 10.6% (FY 20 | 104) Western Cape: 17.0% R21.8 billion (FY20 | R23.3bn) Number of ten

  13. Slide 13: Local industrial portfolio overview

    Local industrial portfolio overview IS Location and efficiency remains key in a cost-sensitive market Contribution to vacancy by type Building total 97 0.6% Carrying value (FY20 | 106) R12.3 billion 16.5% (FY20 | R12.4bn) Number of tenants 334 (FY20 | 413) Vacancy by type 11.1% Warehousing: 9.7% 4.6

  14. Slide 14: Alternative investments

    Alternative investments IS Diversifying income streams REDEFINE’S INTERESTS PLATFORM PROFILE PRIORITIES → Loans of R2.0 billion to → Loan to BEE consortium → Provide loan funding to various third parties for Delta shares disposal secure strategic partners attracting commercial reflected in the books

  15. Slide 15: International portfolio profile

    International portfolio profile IS Exposure to Polish retail and logistics lowers portfolio risk Geographic spread by value (%) 2% Platform carrying value# EPP carrying value 15% R12.6 billion R6.5 billion (FY20 | R15.6bn) (FY20 | R7.3bn) Poland Australia (exit in progress) Africa (exit in progress)

  16. Slide 16: International portfolio key outcomes

    International portfolio key outcomes IS Continued progress to simplify, de-risk and refocus the asset platform 5% Value by sector (%) Strong tenant demand Corporate reorganisation continues to fuel logistics of EPP underway development activity 24% Retail Student accommodation (exit) Industrial 56%

  17. Slide 17: European logistics platform overview

    European logistics platform overview IS Robust development and operational performance backed by strong tenant demand GLA by tenant type (%) Value of income Radom BTS completed 2% 4% Production producing assets EUR555.0 million and disposed for 34% Retailer (FY20 | EUR365.0m) EUR12.4 million 19% Dis

  18. Slide 18: Capital allocation priorities

    Capital allocation priorities IS Allocating capital to position platform for sustained value creation Improving: R201 million Expanding: R586 million High → Revenue enhancing operational capital expenditure → European logistics platform developments → Solar PV expansion → Local retail development →

  19. Slide 19: Looking to the future we want to create

    Looking to the future we want to create IS Maintaining relevance through an adaptable, collaborative and agile shift in focus 2022 key focus areas Accelerated simplified property asset platform → Re-evaluate the relevance and growth prospects of every property asset → Focus on opportunities to expan

  20. Slide 20: Optimising capital

    OC Optimising capital Reshaping our funding sources Group annual results for the year ended 31 August 2021 2020

  21. Slide 21: Key outcomes for 2021

    Key outcomes for 2021 OC Robust balance sheet provides the platform for sustained value creation Sources of capital of R8.0 billion LTV reduced to 41.6% Interest cover ratio (FY20 | 47.9%) maintained at 2.6x Disposal of Leicester Street 2 800 (FY20 | 2.6x) Net working capital 2 768 Access to R5.8 bi

  22. Slide 22: Loan-to-value ratio back to acceptable level

    Loan-to-value ratio back to acceptable level OC Net debt slashed since FY19 by R11.5 billion without issuing dilutive equity through non-core asset disposls FY21 Actual Pathway to target LTV 60% 47.9% 50% 1.0% 1.5% 41.6% 39.9% 0.5% 5.8% 40% 0.7% 1.0% -4.4% -3.5% -1.4% 30% -4.2% -2.6% -1.0% -0.9% -0.

  23. Slide 23: The gradual return to normalcy includes dealing with the pandemic aftermath

    The gradual return to normalcy includes dealing with the pandemic aftermath OC Healthy liquidity levels maintained despite a constrained environment  Cash generation remained strong with average collection ratio of 98.4%  Conclusion of balance sheet de-risking plan with further R6.2 billion in dis

  24. Slide 24: 2021 dividend

    2021 dividend OC Improved liquidity enables resumption of paying dividends History of distributable income and dividend declared Redefine met the The board resolved to declare a full year requisite solvency and dividend amounting to 120 liquidity test R3.266 billion 101.0 100 97.0 97.0 97.2 92.0 92.

  25. Slide 25: Looking to the future we want to create

    Looking to the future we want to create OC Operating within the confines of scarce and costly capital % Drivers of the cost of capital 10 2022 key focus area → Optimise funding model 8 → Continuous focus on liquidity → Maintain a low-risk balance sheet 6 4 Anticipated outcome 2 → Create a sustainabl

  26. Slide 26: Operating efficiently

    OE Operating efficiently Harnessing the acceleration of digital Group annual results for the year ended 31 August 2021 2626

  27. Slide 27: Key outcomes for 2021

    Key outcomes for 2021 OE Navigating the challenges of the pandemic Distributable income analysis Rm Active portfolio Weighted average rental 6 000 5 473 margin at 83.1% renewal growth of -12.7% 5 000 (FY20 | 79.7%) (FY20 | -4.6%) 4 000 2 798 2 877 3 000 5 141 94% 98% 99% 2 000 2 732 2 855 1 000 332

  28. Slide 28: Financial headlines

    Financial headlines OE Comparing to a part pre-COVID-19 period plays out in the numbers Distributable income per share CPS Full year distributable Dividend per share for the 120 101.0 income per share 92.0 97.1 year 60.12 cents* 100 52.96 cents (FY20 | 0.00 cents) 80 51.8 (FY20 | 51.50 cents) 47.2 4

  29. Slide 29: Contributors to changes in distributable income

    OE 29 2 877 FY21 FY21 COVID-19 rental 257 concessions The knowns are outweighed by evolving unknowns means that our goal posts are no longer anchored 256 Bad debts Tailwinds 538 Investment Redefine 24 Europe/ELI Lango Real Estate 1 Realised foreign exchange (2) loss Contributors to changes in distri

  30. Slide 30: Change in net asset value per share

    Change in net asset value per share OE Reset reference points have set a new floor from which to sustain growth EUR 28.45 ZAR 10.51 EPP 7.75 GBP 0.90 EUR 6.33 ELI 12.55 Inv. in Sub (0.73) AUD 1.88 AUD (0.80) Chariot (0.57) EUR (27.51) Vendor loans (1.76) USD 0.44 GBP 0.50 Journal (5.94) AUD (5.89) P

  31. Slide 31: Looking to the future we want to create

    Looking to the future we want to create OE Adopting a smart approach to business processes Lease expiry profile by gross monthly rental 50 000 2022 key focus area 45 000 → Optimise operational efficiency 40 000 → Seek sustainable income earning opportunities 35 000 → Harness technology 30 000 Thousa

  32. Slide 32: Engaging talent

    ET Engaging talent Fostering innovation, creativity and engagement through diversity Group annual results for the year ended 31 August 2021 3232

  33. Slide 33: Key outcomes for 2021

    Key outcomes for 2021 ET Creating the environment where the smartest people do their best work Shifted focus from 7 336 learnership transformation to applications were inclusivity to drive received - 53 learners innovation and stimulate enrolled in the learnership creativity program for 2021 Enhance

  34. Slide 34: Looking to the future we want to create

    Looking to the future we want to create ET Satisfying employees need for inclusion, belonging, ongoing learning, personal growth and purpose 2022 key focus areas Stakeholder → Build a resilient workforce perspective Combine data, AI and people competencies to → Design a workplace for wellbeing deliv

  35. Slide 35: Wrap up

    Wrap up 2021 was the turning point for Redefine 35 3535 Group annual results for the year ended 31 August 2021

  36. Slide 36: Proposed corporate reorganisation of EPP

    Proposed corporate reorganisation of EPP Restoration of the investment in EPP into a productive asset  Redefine has submitted a non-binding proposal to the EPP board which, if implemented, will constitute EPP as an unlisted subsidiary of Redefine  Redefine will make an offer to EPP shareholders to

  37. Slide 37: Our moonshot is ambitious

    Our moonshot is ambitious In this decade, to deliver the smartest and most sustainable spaces the world has ever known Group annual results for the year ended 31 August 2021 37

  38. Slide 38: Creating a future-fit business

    Creating a future-fit business The Redefine of tomorrow is very different from the Redefine of today How we Purpose Stakeholder Agile and Data Innovative operate driven centric resilient driven and inclusive EXECUTION OF STRATEGIC PRIORITIES DELIVERING SUSTAINED VALUE CREATION FOR ALL STAKEHOLDERS F

  39. Slide 39: In closing

    In closing We responded to the challenges created by COVID-19 to reset all aspects of what we do The outlook depends:  not only on the outcome of the battle between the virus and vaccines  but also, on the effective deployment of economic policies to limit damage and the restoration of confidence

  40. Slide 40: Supplementary information

    SI Supplementary information Group annual results for the year ended 31 August 2021 4040

  41. Slide 41: Top risks

    Top risks SI Uncertainty pertaining to short to long term impact of geo-political and socio-economic growth factors Impact of business disruption as a results of advancement of technologies as-well-as evolution of tenants and changing space requirements Damage to property and security-related threat

  42. Slide 42: Our stakeholder universe

    Our stakeholder universe SI Following our strategic review of our stakeholder universe in 2021, we have identified and categorised our stakeholders, with our key stakeholders identified as: Key stakeholders Stakeholder goal Tenants Differentiated provider of relevant space Investors Source of sustai

  43. Slide 43: Value creation scorecard: tenants

    Snapshot of our value creation scorecard by key stakeholder SI A differentiated provider of relevant space to tenants Value creation indicator Value creation outcome 2021 2020 Tenant retention marginally down from 90.8% to 90.5% X X Rental relief and concessions granted of Net R60.7 million (FY20: R

  44. Slide 44: Value creation scorecard: investors

    Snapshot of our value creation scorecard by key stakeholder SI A source of sustained growth in total returns for investors Value creation indicator Value creation outcome 2021 2020 Full-year distributable income of 52.9 cents per share (FY20: 51.5 cents per share)  X Reduction of non-recurring dist

  45. Slide 45: Value creation scorecard: employees

    Snapshot of our value creation scorecard by key stakeholder SI An employer of choice for employees Value creation indicator Value creation outcome 2021 2020 Annual employee remuneration – progress made in terms of pay equality and fairness X  18 672 man-hours spent on training and development (FY20

  46. Slide 46: Value creation scorecard: funders

    Snapshot of our value creation scorecard by key stakeholder SI A reliable source of returns for funders Value creation indicator Value creation outcome 2021 2020 Establishment of new funding source  X Renewal of debt facilities of R3.8 billion (FY20: R1.0 billion)   Margins on debt maintained  X

  47. Slide 47: Value creation scorecard: suppliers

    Snapshot of our value creation scorecard by key stakeholder SI A source of business opportunity and growth for suppliers Value creation indicator Value creation outcome 2021 2020 Enhanced ethical standards through a supplier code of conduct   Spend on labour component of supplier contracts during

  48. Slide 48: Value creation scorecard: shoppers

    Snapshot of our value creation scorecard by key stakeholder SI A provider of safe and innovative shopping space for shoppers Value creation indicator Value creation outcome 2021 2020 Footfall has declined by 2% X X Trading density has increased from R28 000 per m² to R30 200 per m²  X Introduction

  49. Slide 49: Value creation scorecard: communities

    Snapshot of our value creation scorecard by key stakeholder SI A responsible community participant Value creation indicator Value creation outcome 2021 2020 Contribution to community engagement through CSI initiatives   Investment in CSI programmes based on Challenge Convention feedback   Number

  50. Slide 50: Value creation scorecard: property brokers

    Snapshot of our value creation scorecard by key stakeholder SI A preferred business partner for property brokers Value creation indicator Value creation outcome 2021 2020 % leasing deals facilitated by brokers by number of deals  X Commission paid out to brokers of R18 million (FY20: R8 million) 

  51. Slide 51: Analysis of secured and unsecured debt to property assets

    Analysis of secured and unsecured debt to property assets SI Assets Debt LTV Rbn Rbn Secured 47.2 21.4 45.3% Local 41.7# 19.4 46.5% Offshore 5.5## 2.0 36.4% Unsecured 25.7 7.9 30.7% Local** 13.8 7.8 56.5% Offshore 11.9 0.1 0.8% Group LTV without CCS 72.9 29.3 40.2% Cross Currency Swaps (CCS)* 0.8 Lo

  52. Slide 52: Funding snapshot

    Funding snapshot SI FY21 FY20 Funding snapshot Rbn Rbn Bank borrowings 5.9 11.5 Listed bonds and commercial paper 7.2 7.2 Unlisted bonds 17.6 17.9 Total debt 30.7 36.6 Mark-to-market of cross currency swaps 0.8 2.3 Insurance contract liability 0.2 0.1 Cash (1.4) (0.2) Net debt 30.3 38.8 Loan-to-valu

  53. Slide 53: Loan-to-value calculation

    Loan-to-value calculation SI FY21 FY20 FY21 FY20 Redefine reported LTV ratio Rm Rm SA REIT Association LTV ratio Rm Rm Property-related assets 72 937 81 029 Property-related assets 73 087 81 225 Investment properties** 61 038 69 223 Total assets 75 635 82 170 Listed securities 70 70 Less: Cash (1 35

  54. Slide 54: Debt funding profile

    Debt funding profile SI Maturity of local debt Maturity of foreign debt Secured debt / secured assets Rbn Rbn % 3.7 80% 12 4 9.8 9.7 70% 70% 10 8.2 68% 67% 66% 65% 67% 68% 3 63% 65% 8 6.2 1.9 6 5.0 2 60% 4.2 3.4 1.0 1.0 1.1 4 2.0 1.3 2.7 1 0.6 2 0.3 - - - 0 0 40% 2022 2023 2024 2025 2026 2022 2023 2

  55. Slide 55: Currency analysis of property assets and borrowings

    Currency analysis of property assets and borrowings SI FY21 FY20 Property Property assets Debt NAV hedge Weighted avg assets Debt NAV hedge Weighted avg Currency Rbn Rbn % cost % Rbn Rbn % cost % Net ZAR* 60.3 20.9 34.7% 8.1% 65.4 24.7 37.7% 8.1% AUD* 1.9 0.9 47.4% 2.5% 5.2 2.1 40.4% 3.3% EUR* 10.5

  56. Slide 56: Simplified distributable income statement

    Simplified distributable income statement SI FY 2021 FY 2020 Change Rm Rm % Net operating income (NOI) from investment properties 4 817 4 791 0.5% Sundry income 8 38 - Total revenue 4 825 4 829 -0.1% Administrative costs (330) (315) -4.8% Net operating costs 4 495 4 514 -0.4% Net finance charges (1

  57. Slide 57: Local portfolio income analysis

    Local portfolio income analysis SI Active portfolio NOI contribution 3% FY21 FY20 change Rm Rm % 39% 22% Active portfolio revenue* 5 656 5 559 1.7% Active portfolio costs ** (957) (1 130) -15.3% FY21 Net property income from active portfolio 4 699 4 429 6.1% Net operating income from acquired/develo

  58. Slide 58: Local active portfolio expenditure analysis

    Local active portfolio expenditure analysis SI Rm % change FY20 1 130 Increased net municipal costs relates to increased vacancies notably on the Macsteel portfolio 31 14.5% Net electricity cost lower due to favourable council rebills and improved recovery (14) 15.7% Operating costs increased as a r

  59. Slide 59: Local active portfolio revenue growth

    Local active portfolio revenue growth SI Active portfolio revenue growth Office Retail Industrial Specialised Total Active portfolio average rental escalation 7.2% 6.1% 6.0% 6.0% 6.5% Renewal plus new lets net of expiries -7.7% -7.1% -15.4% -12.5% -9.0% Growth in rental income -0.5% -1.1% -9.4% -8.2

  60. Slide 60: COVID-19 tenant relief

    COVID-19 tenant relief SI FY21 FY20 Rm Rm Discounts offered Retail 69.5 208.9 Office 24.6 49.3 Industrial 4.8 10.1 98.9 268.3 Deferrals offered Retail 13.8 25.4 Office 6.3 33.7 Industrial 6.7 27.9 26.8 87.0 Gross discounts and deferrals offered Retail 83.3 234.3 Office 30.9 83.0 Industrial 11.5 38.0

  61. Slide 61: International distributable income analysis

    International distributable income analysis SI UK Europe Australia Africa GBP EUR RDF AUD USD Total R000 Funding Funding EPP Chariot Europe Funding Journal Funding Lango international Contractual rental income - - - - - - 27 298 - - 27 298 Investment income - - - - - - - - 796 796 Total revenue - -

  62. Slide 62: Income hedging position by currency

    Income hedging position by currency SI 2022 2023 2024 2025 EUR EUR amount (€m) 30.5 23.0 17.0 7.5 FEC rate (R: €1) 20.8 22.6 23.9 26.2 Group annual results for the year ended 31 August 2021 62

  63. Slide 63: Reconciliation of cash generated to total distributable income

    Reconciliation of cash generated to total distributable income SI FY21 R000 Net cash inflow from operating activities (as per statement of cash flows) 2 293 452 Items in cash flows from operating activities, but related to distributable income (64 724) Working capital changes (118 462) Decrease in t

  64. Slide 64: Redefine's diversified property asset platform

    Redefine’s diversified property asset platform SI Portfolio valued at R72.9 billion Direct local property portfolio Direct international properties International listed securities Journal Student Accommodation Fund 90.0% R1.9bn EPP N.V. 45.4% R6.5bn Property portfolio 100.0% R59.1bn Retail R24.4bn E

  65. Slide 65: Reconciliation of property assets

    Reconciliation of property assets SI Rm FY20 property asset platform 81 029 Deployment of capital 1 484 Disposals (5 235) Impairment reversal 923 Fair value adjustments (2 510) Foreign exchange adjustments (2 857) Equity accounted profit (net of dividends) 18 Interest raised 222 Net settlement of ve

  66. Slide 66: Local investment strategy

    Local investment strategy SI 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 key economic nodes  Recycle non-core assets to position the p

  67. Slide 67: Fair value measurement of investment properties

    Fair value measurement of investment properties SI Office Retail Industrial Specialised Unobservable inputs across sectors Discount rate (%) 9.00 – 17.00 10.00 – 16.00 11.00 – 15.50 13.00 – 13.50 Exit capitalisation rate (%) 8.00 – 13.00 7.00 – 13.00 8.00 – 11.50 9.00 – 9.75 Bulk rate R1 500 - R3 00

  68. Slide 68: Local retail portfolio | Footcount and sales recovery by retail format

    Local retail portfolio | Footcount and sales recovery by retail format SI Turnover and footfall recovery 180%  FY21 turnover is 103% compared to FY19, driven by essential services 160%  FY21 average monthly footfall has recovered to 82% of 140% pre-COVID levels (FY19)  Large format centre's recov

  69. Slide 69: Local retail portfolio

    Local retail portfolio SI Market Activity Priorities  Retail sales already ahead of pre-COVID-19 levels (2019)  The reversion on renewals was due to the continued poor  Launch online platforms which gives the entire mall and its and continue to improve trading environment which resulted in higher

  70. Slide 70: Local office portfolio

    Local office portfolio SI Market Activity Priorities  National vacancies increased to 15.4% (Sept 2021),  Co-working in the portfolio remains under pressure –  The COVID-19 impact on tenant loss has stabilised but we do foresee that P-and A-grade assets will the Business Exchange occupancies rema

  71. Slide 71: Local industrial portfolio

    Local industrial portfolio SI Market Activity Priorities  Notable disruptions to supply chain in the steel- and  Reconstruction of Ushukela Industrial Park  Pursuing Solar PV opportunities transport sectors, amongst others, caused by the amounting to R74.2 million in progress recent NUMSA strike

  72. Slide 72: Local portfolio overview

    Local portfolio overview SI FY21 FY20 Description Office Retail Industrial Specialised Total Total Number of properties 104 68 97 3 272 296 Number of tenants 1 093 2 786 334 1 4 214 4 553 Total GLA (m²) (million) 1.2 1.3 1.8 - 4.3 4.4 Vacancy (%) active 12.9% 5.2% 4.6% - 7.1% 7.3% Vacancy (%) held-f

  73. Slide 73: Local sectoral split

    Local sectoral split SI By value (%) By GMR (%) 1% 1% 21% 37% 20% 37% 41% 42% Office Retail By GLA (%) By number of properties (%) Industrial 1% Specialised 29% 38% 36% 42% 29% 25% Group annual results for the year ended 31 August 2021 73

  74. Slide 74: Local geographical split

    Local geographical split SI By value (%) By GMR (%) 5% 6% 5% 6% 16% 15% 73% 74% Gauteng Western Cape By GLA (%) By number of properties (%) 6% 8% KwaZulu-Natal 9% Other 6% 13% 14% 73% 71% Group annual results for the year ended 31 August 2021 74

  75. Slide 75: Local sector analysis

    Local sector analysis SI Type by Value Type by GLA Type by GMR 15% 11% 13% Super regional 7% 12% 9% Regional Retail Convenience Other 44% 45% 45% 32% 34% 33% Type by value Type by GLA Type by GMR 14% 13% 24% Premium Grade 31% A-Grade 49% Office 43% Secondary Grade 38% 43% 45% 10% Type by value 18% 1

  76. Slide 76: Local tenant grading by GLA

    Local tenant grading by GLA SI Total (%) Retail (%) 10% 15% 11% 13% 72% 79% Grade A Office (%) Grade B Industrial (%) 6% 10% Grade C 5% 18% 72% 89% Group annual results for the year ended 31 August 2021 76

  77. Slide 77: Local lease expiry profile by GMR

    Local lease expiry profile by GMR SI By gross monthly rental (GMR) 50 000 45 000 Office Retail Industrial Specialised Total 40 000 Monthly 23 950 506 14 757 141 2 014 130 - 40 721 777 35 000 2022 27 465 681 40 925 630 21 773 607 - 90 164 918 30 000 Thousands 2023 23 287 541 39 407 689 13 726 778 - 7

  78. Slide 78: Local lease expiry profile by GLA

    Local lease expiry profile by GLA SI By gross lettable area (GLA) 900 800 Office Retail Industrial Specialised Total 700 Monthly 157 800 74 681 32 587 - 265 068 600 2022 151 953 206 131 342 178 - 700 262 500 Thousands 2023 143 348 196 728 232 430 - 572 506 400 2024 163 576 262 415 173 846 - 599 837

  79. Slide 79: Local top 10 properties and tenants of total portfolio

    Local top 10 properties and tenants of total portfolio SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Centurion Mall Gauteng 3 456 000 118 976 Macsteel 550 138 25 538 262 Alice Lane Gauteng 3 271 400 77 915 Pepkor 246 716 24 481 075 Blue Route Mall Western Cape 1 486 500 56 133 Governm

  80. Slide 80: Local top 10 retail properties and tenants

    Local top 10 retail properties and tenants SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Centurion Mall Gauteng 3 456 000 118 976 Shoprite 99 839 13 244 638 Blue Route Mall Western Cape 1 486 500 56 133 Pick n Pay 85 032 9 900 044 Golden Walk Gauteng 1 460 300 45 142 Pepkor 81 617 11

  81. Slide 81: Local top 10 office properties and tenants

    Local top 10 office properties and tenants SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) Alice Lane Gauteng 3 271 400 77 915 Government 126 679 18 088 395 115 West Street Gauteng 1 425 400 41 091 Alexander Forbes 44 611 13 309 841 Black River Office Park Western Cape 1 384 200 71 592

  82. Slide 82: Local top 10 industrial properties and tenants

    Local top 10 industrial properties and tenants SI Value Property Region (R000) GLA m² Tenant GLA m² GMR (R) 233 Barbara Road Gauteng 937 810 120 277 Macsteel 550 138 25 538 262 Pepkor Isando Gauteng 752 900 107 017 Pepkor 165 099 12 683 933 Hirt & Carter Cornubia KwaZulu-Natal 627 800 47 718 Massmar

  83. Slide 83: Top 10 local undeveloped land

    Top 10 local undeveloped land SI Value Property# Region (R000) S & J Industrial (90% share) Gauteng 837 090 Brackengate 2 Mainland Western Cape 156 062 Atlantic Hills (55% share) Western Cape 148 610 Galleria (90% share) Gauteng 141 120 Cornubia Ptn 18 KwaZulu-Natal 54 000 Masingita Land (40% share)

  84. Slide 84: Local specialised properties

    Local specialised properties SI Value Property Region (R000) GLA m2* Bedford Gardens Hospital Gauteng 363 300 12 817 Park Central Gauteng 175 000 - Loftus Park Hotel Gauteng 28 600 - Total specialised portfolio* 566 900 12 817 * Total portfolio value and GLA (m2) includes properties classified as pr

  85. Slide 85: Disposals | Non-core property assets

    Disposals | Non-core property assets SI Date Proceeds Property Province of transfer GLA (m²) (R000) Yield (%) Retail 64 002 911 652 9.0 Ottery Centre Western Cape 23-Sep-20 30 802 334 000 8.9 Langeberg Mall Western Cape 23-Dec-20 29 849 567 902 8.9 Williams Hunt Randburg Gauteng 31-May-21 3 351 9 75

  86. Slide 86: Disposals | Non-core property assets | continued

    Disposals | Non-core property assets | continued SI Date Proceeds Property Province of transfer GLA (m²) (R000) Yield (%) Specialised# - 948 414 - Park Central Gauteng Various - 13 914 - Yale Village^ Gauteng 12-Aug-21 - 90 500 - Roscommon House^ Western Cape 18-Aug-21 - 244 000 - Hatfield Square^ G

  87. Slide 87: Non-current assets held for sale

    Non-current assets held for sale SI Value Local properties Province Sector GLA (m²) (R000) Yield (%) Industrial 16 866 66 035 8.2 66 Michelin Street (Ex -Macsteel VRN Vaal) Gauteng Industrial 6 943 12 835 - East Balt Gauteng Industrial 9 923 53 200 10.2 Office 25 269 128 849 14.9 7 Sturdee Avenue Ga

  88. Slide 88: Local developments completed

    Local developments completed SI Total value of Projected work Development development Initial yield completed# costs## Completion Property Province GLA (m²) Sector cost (R000) (%) (R000) (R000) date Local new developments completed* Brackengate MassMart (50.1% share) Western Cape 26 353 Industrial 1

  89. Slide 89: Local new developments in progress

    Local new developments in progress SI Projected Initial Total value of Still to development yield work completed# Development spend Completion Property Province GLA (m²) Sector cost (R000) (%) (R000) costs## (R000) (R000) date Local new developments in progress* Kwena Square Gauteng 10 008 Retail 17

  90. Slide 90: Local redevelopments completed

    Local redevelopments completed SI Projected Total value of redevelopment work completed Redevelopment Completion Redevelopments* Province cost (R000)* (R000)** costs## (R000) date Office 45 971 44 277 20 625 The Old Match Factory (demolitions) Western Cape 2 178 1 858 279 Oct-20 Black River Park (de

  91. Slide 91: Local redevelopments in progress

    Local redevelopments in progress SI Projected Total value of redevelopment work completed** Redevelopment Completion Still to spend Redevelopments* Province cost (R000) (R000) costs## (R000) date (R000) Retail 36 386 1 175 1 175 35 211 Hazeldean Retail Square (Dis-Chem) Gauteng 4 636 1 175 1 175 Dec

  92. Slide 92: Local new developments and redevelopments future committed pipeline

    Local new developments and redevelopments future committed pipeline SI Projected development Budgeted initial Project start New projects Province cost (R000)* yield (%) date Infrastructure 57 308 n/a Jupiter Ext 30 to 33 Gauteng 57 308 n/a Oct-21 Retail 11 757 7.53 Blue Route Mall Western Cape 11 75

  93. Slide 93: Local infrastructure projects

    Local infrastructure projects SI Projected Total value of infrastructure work completed Infrastructure Infrastructure projects completed Province cost (R000)* (R000)** costs*** (R000) Completion date Industrial 162 670 161 383 2 179 Atlantic Hills (55%) Western Cape 162 670 161 383 2 179 Oct-20 Proj

  94. Slide 94: Solar PV projects in progress

    Solar PV projects in progress SI Plant Size Capex First year Building (MWp) (R’000) return (%) Retail 12.5 138 132 19.2% Kyalami Corner 1.2 12 017 14.9% Centurion Mall 1.3 12 970 17.9% Benmore Shopping Centre 0.5 5 336 14.7% Kwena Square 0.8 13 549 13.6% The Boulders Shopping Centre 1.2 11 883 24.9%

  95. Slide 95: International investment strategy

    International investment strategy SI Investment criteria Our focus  Local partner representation and  Limited to Poland aligned with Redefine’s interests  Provide ongoing strategic and financial support to our partners in-country  Provide opportunities for scale  Invest directly where there is

  96. Slide 96: Poland

    Poland SI Redefine’s interests  EPP 45.4%  Chariot Top Group loan receivable  European Logistics 46.5% Platform profile 68% exposure to retail, 3% to office and 29% logistics assets Carrying value R10.5 billion See through value of assets R25.5 billion See through LTV 85.2% (2020 : 89.9%) Redefin

  97. Slide 97: Poland | continued

    Poland | continued SI Logistics market overview  Poland remains the key logistics market in central Europe and continued with a record-breaking performance for new developments and lettings  Significant lease activity recorded in last six months, mostly driven by e-commerce activity, with a 40% in

  98. Slide 98: Poland | continued

    Poland | continued SI Key operational highlights -  At 31 August 2021, the total GLA of the income producing portfolio is 689 259m², reflecting an increase of 161 385m² (31%) ELI compared to 31 August 2020  The increase in GLA is due to the completion of six projects with GLA of 161 385m² at a tot

  99. Slide 99: Poland | continued

    Poland | continued SI Redefine’s strategy EPP  Restoration of EPP into a productive asset Chariot Top Group  Redefine to implement the M1 Marki acquisition thereby exiting minority held Chariot yielding non-recurring income in exchange for a wholly-owned retail asset generating a recurring income

  100. Slide 100: International new developments

    International new developments SI Total GLA Development Development Fair value Fair Value Change Developments completed in 2021 (m²) cost (EURm) cost (Rm) (EURm) (Rm) (%) Industrial Bielsko-Biala Phase II 43 764 28.1 484.5 39.1 675.6 39 Ruda Ślaska Phase II 23 578 12.6 217.1 21.1 363.7 68 Lublin II

  101. Slide 101: International new developments

    International new developments SI Total GLA Development Development Still to spend Still to spend Anticipated Developments under construction (m²) cost (EURm) cost (Rm) (EURm) (Rm) completion date Industrial Wroclaw City Phase I " 44 257 32.2 556.1 12.7 219.7 Sep 21 Kraków Skawina 18 347 12.7 218.7

  102. Slide 102: 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

Redefine Properties — FY2021 Earnings Presentation on 6ix