Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — Debt Investor Presentation (July 2018)
79 slides from Vukile Property Fund's debt investor presentation, July 2018
Slide 1: Debt Capital Markets Roadshow
Debt Capital Markets Roadshow July 2018 www.vukile.co.za
Slide 2: Contact Details
Contact Details Available for questions Vukile Property Fund Designation Email Tel. Number Cell number Laurence Rapp Chief Executive Office [email protected] +27 (0)11 288 1002 +27 (0)83 266 3011 Mike Potts Chief Financial Office [email protected] +27 (0)11 288 1003 +27 (0)83 357 1111
Slide 3: Agenda
AGENDA 1 Company Overview 2 Strategic Direction 3 Treasury Management 4 Defensive Cashflow - Southern African Retail Portfolio 5 Defensive Cashflow - Spanish Portfolio 6 DMTN Programme 7 Q&A 8 Appendices 3
Slide 4: Company Overview
Company Overview www.vukile.co.za 4
Slide 5: Profile: Who we are
Profile Who we are OVERVIEW COMPANY High quality, low risk, Retail REIT in South Africa with growing international exposure in Spain Strong operational focus with a core competence in active asset management DIRECTION STRATEGIC Aim for simplicity and transparency MANAGEMENT TREASURY Clarity
Slide 6: Group Overview – Total property related assets of R22.7bn
Group Overview – Total property related assets of R22.7bn Focused Retail REIT in South Africa with growing Spanish retail exposure OVERVIEW COMPANY United Kingdom 5% DIRECTION STRATEGIC R1.2bn(iii) MANAGEMENT TREASURY 25% RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Spain R5.6bn(ii) SPANIS
Slide 7: Distribution history
Distribution history Continuing 14 year trend of unbroken growth in distributions with CAGR of 21.9% since listing Cents per share OVERVIEW COMPANY 7.7% DIRECTION STRATEGIC Interim Final Normalised total Non-recurring 168,82 156,75 MANAGEMENT TREASURY 146,3 136,8 RETAIL PORTFOLIO SOUTHERN AFRICAN CA
Slide 8: Strategic Direction
Strategic Direction www.vukile.co.za 8
Slide 9: Strategic direction
Strategic direction Focus on capital allocation and strategic consistency OVERVIEW COMPANY Southern Africa Balance International sheet management DIRECTION STRATEGIC Continued focus on defensive retail Focus will be on Spain to drive home Disciplined and conservative financial MANAGEMENT TREAS
Slide 10: Equity investments
Equity investments Focus on capital allocation and strategic consistency OVERVIEW COMPANY Fairvest Atlantic Leaf Properties Gemgrow DIRECTION STRATEGIC Continues to deliver above Portfolio performing in line with Non-core asset and would look to MANAGEMENT TREASURY expectations expectations bu
Slide 11: Corporate structure
Corporate structure Strong focus on Corporate Governance and Succession Planning OVERVIEW COMPANY Group DIRECTION STRATEGIC Level MANAGEMENT TREASURY Southern Laurence Rapp Spain RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Chief Executive Officer Africa Mike Potts Chief Financial Officer
Slide 12: Treasury Management
Treasury Management at year ended 31 March 2018 www.vukile.co.za 12
Slide 13: Debt and foreign exchange policy
Debt and foreign exchange policy A prudent approach to managing risk Internal management policy of a maximum loan to value ratio of 40% OVERVIEW COMPANY with 35% targeted level DIRECTION STRATEGIC Minimum of 75% of interest bearing debt to be hedged with a minimum 3 year fixed rate (swap) maturi
Slide 14: Key debt and foreign exchange metrics
Key debt and foreign exchange metrics Well hedged and prudent balance sheet OVERVIEW COMPANY Reduced Group cost of funding to 5.74% (South Africa 9.24%) Strong balance sheet with a loan to value ratio of 28.2% (i) and a gearing ratio of 29.6% (ii) DIRECTION STRATEGIC 101.3% (iv) of Interest be
Slide 15: Segmental loan-to-value and interest cover ratios
Segmental loan-to-value and interest cover ratios Low risk conservative balance sheet OVERVIEW COMPANY Southern Africa Spain Group Internal Policy R'000 €'000 R'000 at Group level DIRECTION STRATEGIC Loan-to-value ratio (net of cash and cash equivalents) (i) 24.6% 42.2% 28.2% 35% - 40% Loan-to-value
Slide 16: Sources of funding
Sources of funding R7.1bn of Vukile Group debt from diversified sources of funding Spanish balance sheet (v) Southern African balance sheet OVERVIEW COMPANY Consolidated debt from Castellana which is non-recourse to Vukile R2.128bn DIRECTION STRATEGIC 8% Banco Popular MANAGEMENT TREASURY R1.749bn R1
Slide 17: Analysis of Group loan repayment and swap expiry profile
Analysis of Group loan repayment and swap expiry profile Well hedged with low risk expiry profile Group loan and swap expiry profile OVERVIEW COMPANY DIRECTION STRATEGIC 27.3% Internal Policy 22.7% MANAGEMENT TREASURY No more than 19.5% 20.9% 25% of total 18.6% 18.0% interest bearing 17.7% debt to m
Slide 18: Analysis of Southern African loan repayment and swap expiry profile
Analysis of Southern African loan repayment and swap expiry profile Well hedged with low risk expiry profile Southern African Loan and Swap Expiry Profile OVERVIEW COMPANY DIRECTION STRATEGIC 27.9% 30.8% 26.6% MANAGEMENT TREASURY 26.0% 20.4% 21.2% RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSI
Slide 19: Cost of funding
Cost of funding Reduction in Group cost of finance due to funding mix Group Debt by Currency OVERVIEW COMPANY DIRECTION STRATEGIC 9.16% 9.24% 9.37% 2.15% 2.28% 2.35% 3.76% 3.34% 3.49% 7.90% 5.74% 5.20% R7,071bn MANAGEMENT TREASURY RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE R4,026bn R3,74
Slide 20: Undrawn facilities
Undrawn facilities (including new facilities after FY2018 year end) Prudent cashflow management OVERVIEW COMPANY Facility Amount Amount Drawn Facility Available R'000 R'000 R'000 DIRECTION STRATEGIC ABSA Multicurrency Revolving Credit Facility R850 000 R350 000 R500 000 RMB Revolving Credit Facility
Slide 21: GBP foreign exchange hedging
GBP foreign exchange hedging Maintaining sustainable predictable income while reducing currency volatility OVERVIEW COMPANY £'000 May-18 Nov-18 May-19 Nov-19 May-20 Nov-20 Net GBP dividends forecast (xi) £2 562 £2 641 £2 713 £2 661 £2 727 £2 760 DIRECTION STRATEGIC FEC hedge (£1 953) (£1 885) (£1 93
Slide 22: EUR foreign exchange hedging post year end
EUR foreign exchange hedging post year end Includes the acquisition of Habaneras in May 2018 OVERVIEW COMPANY €'000 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Net EUR dividends forecast (xiii) €4 055 €4 061 €4 780 €4 769 €4 996 €4 996 DIRECTION STRATEGIC FEC hedge (€3 209) (€3 884) (€3 775) (€3 989)
Slide 23: Defensive Cashflow - Southern African Retail Portfolio
Defensive Cashflow - Southern African Retail Portfolio at year ended 31 March 2018 www.vukile.co.za 23
Slide 24: Key portfolio metrics
Key portfolio metrics Direct Southern African Retail Portfolio OVERVIEW COMPANY Value R13.2bn (91% of direct Southern African portfolio) 46% of income from top 10 tenants 46 Properties WALE of 3.7 years DIRECTION STRATEGIC GLA 810 398m² Average base rentals R130.44/m²/month MANAGEMENT TREASU
Slide 25: Creating a high quality low risk retail portfolio
Creating a high quality low risk retail portfolio Interrelationship of key retail metrics OVERVIEW COMPANY Regional Tenant Dominance Profile DIRECTION STRATEGIC Dominant in primary 82% national tenants catchment area 37% of leases expiring in In excess of 130 million 2022 and beyond customer
Slide 26: Retail tenant exposure
Retail tenant exposure Low risk with c.80% national tenants Tenant profile - by contractual rent Top 10 tenants by rent OVERVIEW COMPANY DIRECTION STRATEGIC Other Star 8,3% 2.7% Pep Stores 2.5% Ackermans 21% Shoprite MANAGEMENT TREASURY Diversified across 5,8% 990 tenants Edcon 5,7% 3.2% Jet 1.6% Ed
Slide 27: Southern Africa: Continued focus on retail
Southern Africa Continued focus on retail OVERVIEW COMPANY Encouraged by improving political and economic environment leading to an uptick in consumer confidence but no tangible evidence yet on the ground DIRECTION STRATEGIC Portfolio is defensively positioned with 91% of direct property assets
Slide 28: Defensive Cashflow - Spanish Portfolio
Defensive Cashflow - Spanish Portfolio at year ended 31 March 2018 www.vukile.co.za 28
Slide 29: Key portfolio metrics
Key portfolio metrics A low-risk defensive portfolio as a platform for future growth OVERVIEW COMPANY 92% Retail by market value Average asset value of €23.7mn DIRECTION STRATEGIC External portfolio value of €308mn with 94% of income derived from national tenants organic growth of 6.65% vs a
Slide 30: Retail tenant exposure
Retail tenant exposure Low risk with c.94% national and international tenants Tenant profile - by contractual rent Top 10 tenants by rent OVERVIEW COMPANY DIRECTION STRATEGIC Other 11% 6% MANAGEMENT TREASURY 10% 7% RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE 6% Top 10 6% Tenants SPANISH P
Slide 31: Spain: Moving to the next stage
Spain Moving to the next stage OVERVIEW COMPANY Spanish retail and economic fundamentals remain positive Castellana management team now on board and growing operational capacity DIRECTION STRATEGIC Approach is to “replicate not integrate”, implant Vukile DNA into Castellana MANAGEMENT TREASURY
Slide 32: DMTN Programme
DMTN Programme www.vukile.co.za 32
Slide 33: Overview of DMTN Secured Property Portfolio
Overview of DMTN Secured Property Portfolio (Group 1 Notes) Quality Secured Portfolio OVERVIEW COMPANY Property Value R4 368mn* 42% of income from top 10 tenants DIRECTION STRATEGIC 18 Properties 74% of space let to national tenants MANAGEMENT TREASURY GLA 289 395m² WALE of 3.4 years RET
Slide 34: Secured Portfolio: Top assets
Secured Portfolio Top 5 assets OVERVIEW COMPANY Phoenix Plaza Pine Crest * Gugulethu Square Dobsonville Mall Randburg Square DIRECTION STRATEGIC MANAGEMENT TREASURY GAV R914mn R914mn R544mn R513mn R397mn RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Region KwaZulu-Natal KwaZulu-Natal Wester
Slide 35: Overview of Unsecured Assets
Overview of Unsecured Assets Quality Unsecured Assets OVERVIEW COMPANY Property value R537mn* Listed investments R415mn~ DIRECTION STRATEGIC 3 Properties Unlisted investments R2 048mn^ MANAGEMENT TREASURY GLA 41 679m² Total Unsecured Assets R3 000mn RETAIL PORTFOLIO SOUTHERN AFRICAN CASH
Slide 36: Unsecured Property Portfolio: Top assets
Unsecured Property Portfolio Top 3 assets OVERVIEW COMPANY Moruleng Mall * Maake Plaza Bloemfontein Jet DIRECTION STRATEGIC GAV R401mn R96m R41m MANAGEMENT TREASURY Region Northwest Limpopo Free State Gross Lettable Area RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE 31 421m² 15 752m² 5 516m
Slide 37: Overview of Namibian Portfolio
Overview of Namibian Portfolio Quality Property Assets OVERVIEW COMPANY Property value R1 099mn* Total Unsecured Direct Property R1 636mn including Namibian Portfolio DIRECTION STRATEGIC 5 Properties Total Unsecured Assets R4 100mn including MANAGEMENT TREASURY Namibian Portfolio GLA 63 15
Slide 38: Namibian Portfolio: Top assets
Namibian Portfolio Top 5 assets OVERVIEW COMPANY Oshakati Shopping Windhoek 269 Katutura Shoprite Oshikango Shopping Ondangwa Shoprite DIRECTION STRATEGIC Centre Independence Avenue Centre Centre Centre MANAGEMENT TREASURY GAV R465mn R230mn R171mn R160mn R73mn Region Namibia Namibia Namibia Namibia
Slide 39: Corporate Bond and Commercial Paper Issuances
Corporate Bond and Commercial Paper Issuances Balance of secured and unsecured debt OVERVIEW COMPANY Corporate Bonds Security Amount Reference Rate Margin Maturity Date Initial Term VKE07 Secured R200mn 3M JIBAR 1.65% 08/06/2020 5.1 years DIRECTION STRATEGIC VKE08 Unsecured R110mn 3M JIBAR 1.80% 29/
Slide 40: Funding Plans
Funding Plans Managing Cashflow OVERVIEW COMPANY Recently repaid VKE06 a R380mn secured corporate bond in May 2018 DIRECTION STRATEGIC Recently repaid bank term loans of R150mn in April 2018 MANAGEMENT TREASURY Will repay term loan of R82mn in July 2018 RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFL
Slide 41: Q&A
PROPERTY — ILE FUND REAL ESTATE. REAL GROWTH. www.vukile.co.za 41
Slide 42: Contact Details
Contact Details Available for questions OVERVIEW COMPANY Vukile Property Fund Designation Email Tel. Number Cell number Laurence Rapp Chief Executive Office [email protected] +27 (0)11 288 1002 +27 (0)83 266 3011 DIRECTION STRATEGIC Mike Potts Chief Financial Office [email protected]
Slide 43: Appendix A: Secured portfolio
Appendix A Secured portfolio www.vukile.co.za 43
Slide 44: Secured Transaction Structure
Secured Transaction Structure Industry best practices Vukile Security The Secured Notes are secured through a guarantee from the Company No.1 OVERVIEW COMPANY Vukile Security SPV Trust No.1 Owner Trust The mortgage bonds are housed in the Guarantee SPV, which DIRECTION STRATEGIC provides guarant
Slide 45: Other Secured Portfolio Assets
Other Secured Portfolio Assets (excluding Top 5 Assets) Total Secured Bloemfontein King Senzangakona Highland OVERVIEW COMPANY Portfolio Plaza Centre Mews GAV R4 368mn R341mn R274mn R244mn DIRECTION STRATEGIC Region South Africa Free State KwaZulu-Natal Mpumalanga Gross Lettable Area 289 395m² 38 25
Slide 46: Secured portfolio composition
Secured portfolio composition Top 5 assets make up c.65% of the total portfolio Sectoral Profile - by Market Value Sectoral Profile - by GLA OVERVIEW COMPANY DIRECTION STRATEGIC Top 5 Top 5 Properties Properties MANAGEMENT TREASURY By Market Value By GLA 65% 90% Retail 81% 47% of Total 8% Industrial
Slide 47: Secured Portfolio tenant exposure
Secured Portfolio tenant exposure Low risk with 70% national tenants Top 10 Tenants by Contractual Rent Top 10 Tenants by occupied GLA OVERVIEW COMPANY Other DIRECTION STRATEGIC Other 26% 30% Top 10 Top 10 Diversified across Tenants Tenants MANAGEMENT TREASURY 311 tenants 42% Nationals 45% of Total
Slide 48: Secured portfolio tenant expiry profile
Secured portfolio tenant expiry profile 32% of contractual rent expiring in 2022 and beyond (WALE 3.4 years) % of Contractual Rent OVERVIEW COMPANY % of Contractual Rent Cumulative 100 78 68 DIRECTION STRATEGIC 51 23 17 22 28 10 MANAGEMENT TREASURY Mar-19 Mar-20 Mar-21 Mar-22 Beyond Mar-22 RETAIL PO
Slide 49: Secured portfolio vacancy profile
Secured portfolio vacancy profile Vacancy improving to 3.5% of area 5,9 INTRODUCTION 4,5 3,8 3,6 3,2 3,1 OVERVIEW RETAIL PORTFOLIO SOUTHERN AFRICAN Vacancy 3.8% of Rent Retail Industrial Total OVERVIEW PORTFOLIO SPANISH MANAGEMENT & TREASURY PERFORMANCE FINANCIAL Mar-17 Mar-18 8,3 BOARD CHANGES MANA
Slide 50: Appendix B: Southern African portfolio
Appendix B Southern African portfolio www.vukile.co.za 50
Slide 51: High quality retail assets: Top assets
High quality retail assets Top 15 assets OVERVIEW COMPANY East Rand Mall Pine Crest Phoenix Plaza Gugulethu Square Dobsonville Mall DIRECTION STRATEGIC MANAGEMENT TREASURY GAV R1 389mn R914mn R914mn R544mn R513mn RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Region Gauteng KwaZulu-Natal Kwa
Slide 52: High quality retail assets: Top assets (cont.)
High quality retail assets Top 15 assets (cont.) Oshakati Shopping Daveyton Shopping OVERVIEW COMPANY Nonesi Mall Maluti Crescent Moruleng Mall Centre Centre DIRECTION STRATEGIC MANAGEMENT TREASURY GAV R472mn R465mn R412mn R409mn R401mn RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Region E
Slide 53: High quality retail assets: Top assets (cont.)
High quality retail assets Top 15 assets (cont.) Atlantis City Shopping OVERVIEW COMPANY Meadowdale Mall Randburg Square Thavhani Mall Bloemfontein Plaza Centre DIRECTION STRATEGIC MANAGEMENT TREASURY GAV R399mn R397mn R396mn R341mn R331mn RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Regio
Slide 54: Retail tenant expiry profile
Retail tenant expiry profile 37% of contractual rent expiring in 2022 and beyond (WALE 3.7 years) OVERVIEW COMPANY % of Contractual Rent Cumulative 100 DIRECTION STRATEGIC 75 MANAGEMENT TREASURY 63 RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE 47 29 SPANISH PORTFOLIO CASHFLOW - DEFENSIVE 18
Slide 55: Retail tenant affordability
Retail tenant affordability Consistently strong metrics Retail Vacancy Profile by Rent Retail Average Base Rentals (excl. Recoveries) OVERVIEW COMPANY DIRECTION STRATEGIC 130,44 4,0% 122,88 3,9% 114,61 3,6% 108,14 3,4% 3,3% 3,3% 102,56 MANAGEMENT TREASURY 86,86 RETAIL PORTFOLIO SOUTHERN AFRICAN CASH
Slide 56: Rent-to-sales ratio by Top 15 properties
East Rand Mall 10,0% Phoenix Plaza 7,7% Randburg Square 7,5% Gugulethu Square 7,1% Debt Capital Markets Roadshow - July 2018 Thavhani Mall 7,0% Ahead of industry benchmarks Bloemfontein Plaza 6,5% Pine Crest 6,4% Moruleng Mall 5,7% Maluti Crescent 5,5% Rent-to-sales ratio by Top 15 properties Oshaka
Slide 57: Retail portfolio trading statistics by Top properties
Retail portfolio trading statistics by Top 15 properties High trading density with solid growth ahead of market comparables OVERVIEW COMPANY Annualised trading density Trading density like-for-like growth 2.1% 2.4% (0.6%) 7.7% 0.6% 0.1% 9.5% 0.9% 9.5% 6.2% * 0.2% 8.9% 10.3% 2.0% 2.2% DIRECTION STRAT
Slide 58: Retail insights
Retail insights Segmental allocation adding to defensive nature of portfolio OVERVIEW COMPANY Segment Focus Tenants Focus DIRECTION STRATEGIC Most of retail exposure (66%) remains in buoyant Small Regional and Majority of our category exposure remains in the inelastic grocery sector Community Sh
Slide 59: Retail portfolio trading statistics by category
Retail portfolio trading statistics by category Strong trading densities in core categories OVERVIEW COMPANY Bottle Stores 13,4% DIRECTION STRATEGIC Trading Density like-for-like Growth MANAGEMENT TREASURY Health & Beauty 7,7% Home Furnishings/ Art/ Sporting/ Outdoor Goods & Wear Antiques/ Décor 5,3
Slide 60: Edcon exposure
Edcon exposure Support Edcon in their restructuring Continue to critically assess our exposure to Edcon and manage appropriately over time OVERVIEW COMPANY Exposure to Edcon based on GLA Action plan DIRECTION STRATEGIC We have been in discussions with Edcon to restructure MANAGEMENT TREASURY 0,7
Slide 61: Alternative Income Management
Alternative Income Management Starting to gather momentum OVERVIEW COMPANY 41 new contracts concluded to deliver in-mall and out-mall advertising income Court space income to increase with new agreement with Compass Communications DIRECTION STRATEGIC (promotions division of Smollan Retail Soluti
Slide 62: Extension and upgrade: Pinecrest Shopping Centre
Extension and upgrade Pinecrest Shopping Centre, Pinetown, KZN OVERVIEW COMPANY Upgrading the existing centre and expanding the total GLA from 40 087m² to 45 190m² DIRECTION STRATEGIC A new mall, upgraded food court and an improved tenant mix is being added to the centre MANAGEMENT TREASURY Ne
Slide 63: Redevelopment in progress: Maluti Crescent
Redevelopment in progress Maluti Crescent, Phuthaditjhaba OVERVIEW COMPANY Redevelopment to cater to nationals with exceptional trading densities of greater than R40 000/m² per annum who wish to expand their footprints DIRECTION STRATEGIC Centre will be the largest enclosed mall in the town MANA
Slide 64: Appendix C: Spanish Portfolio
Appendix C Spanish Portfolio www.vukile.co.za 64
Slide 65: Spain portfolio overview: Top assets
Spain portfolio overview Top 10 assets Kinepolis Retail Park OVERVIEW COMPANY Alameda Retail Park Parque Oeste Parque Principado Marismas Del Polvorin and Leisure Centre DIRECTION STRATEGIC MANAGEMENT TREASURY Value €55.3mn €49.4mn €45.6mn €32.6mn €28.8mn RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW -
Slide 66: Spain portfolio overview: Top assets
Spain portfolio overview Top 10 assets OVERVIEW COMPANY Konecta Madrid La Heredad La Serena(i) Pinatar Park Mejostilla DIRECTION STRATEGIC MANAGEMENT TREASURY GAV €20.1mn €19.2mn €15.4mn €11.6mn €6.4mn RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Province Madrid Badajoz Badajoz Murcia Cace
Slide 67: Lease expiry profile
Lease expiry profile 86% of contractual rent expiring in 2028 and beyond (WALE 18.6 years to expiry and 5.0 years to break) OVERVIEW COMPANY Expiry profile (% Rent) % of Contractual Rent Cumulative DIRECTION STRATEGIC 100% 86% MANAGEMENT TREASURY 15% RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFE
Slide 68: Castellana key milestones
Castellana key milestones Significant progress in past twelve months OVERVIEW COMPANY Castellana currently in a building phase – portfolio has grown to €308mn by 31 March 2018 Acquired 13 assets in 2017 for c.€260mn DIRECTION STRATEGIC - 11 retail parks acquired in July 2017 for €193mn MANAGEMEN
Slide 69: Active Asset Management
Active Asset Management Identifying value add opportunities OVERVIEW COMPANY The Castellana management team on the ground and adding value to the assets − Head of Asset Management – Julio Garcia joined in December 2017 − Starting to build further in-house capacity in finance and asset management D
Slide 70: Redevelopment in progress: Kinepolis Leisure Centre
Redevelopment in progress Kinepolis Leisure Centre, Granada OVERVIEW COMPANY Improve the look and feel of the centre by upgrading the external facades and internal finishes DIRECTION STRATEGIC Increase natural light by increasing shopfronts, opening up of the facade and inserting floor to ceilin
Slide 71: Acquisition post year end: Habaneras Shopping Centre
Acquisition post year end Habaneras Shopping Centre, Torrevieja OVERVIEW COMPANY Castellana has finalised the acquisition of Habaneras Shopping Centre, located in Torrevieja, Alicante, Spain DIRECTION STRATEGIC The centre is a 24 158m² open-air shopping centre comprising of 70 tenants MANAGEMENT
Slide 72: Appendix D: Financial Results Overview
Appendix D Financial Results Overview www.vukile.co.za 72
Slide 73: Board changes
Board changes A fully independent board of high calibre, experienced non-executive directors OVERVIEW COMPANY DIRECTION STRATEGIC MANAGEMENT TREASURY Anton Botha Nigel Payne Renosi Mokate Babalwa Ngonyama RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE Set to retire at AGM in August 2018
Slide 74: Group net cash flow
Group net cash flow – (R’mn) Deployment of R4.8bn in growing the property portfolio, mainly in Spain OVERVIEW COMPANY 3 095 DIRECTION STRATEGIC MANAGEMENT TREASURY 1 557 RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE 1 334 SPANISH PORTFOLIO CASHFLOW - DEFENSIVE (4 766) 323 175 87 (1 180) (41
Slide 75: Group balance sheet
Group balance sheet – (R’mn) Assets and liabilities at 31 March 2018 OVERVIEW COMPANY 18 821 Mar-18 Mar-17 DIRECTION STRATEGIC MANAGEMENT TREASURY 13 220 RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE SPANISH PORTFOLIO CASHFLOW - DEFENSIVE 5 485 3 207 2 965 2 631 1 991 PROGRAMME DMTN 1 288 1
Slide 76: NAV Bridge
NAV Bridge – (Cents) NAV growth of 7.6% to 2010cps OVERVIEW COMPANY 713 DIRECTION STRATEGIC (1) (8) (37) (79) (197) MANAGEMENT TREASURY 72 (321) RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENSIVE SPANISH PORTFOLIO CASHFLOW - DEFENSIVE 2 010 1 868 PROGRAMME DMTN Opening NAV Increase in Increase i
Slide 77: Appendix E: Treasury Management Overview
Appendix E Treasury Management Overview www.vukile.co.za 77
Slide 78: Analysis of Spanish loan repayment and swap expiry profile
Analysis of Spanish loan repayment and swap expiry profile Debt restructured as part of Alameda & Pinatar acquisition Castellana’s Spanish Loan and Swap Expiry Profile OVERVIEW COMPANY DIRECTION STRATEGIC 44.4% 44.4% MANAGEMENT TREASURY 30.1% 30.1% RETAIL PORTFOLIO SOUTHERN AFRICAN CASHFLOW - DEFENS
Slide 79: Notes to Treasury Management Slides
Notes to Treasury Management Slides Aligned with industry best standards OVERVIEW COMPANY (i) Loan-to-Value ratio calculated as a ratio of interest bearing debt less Cash and cash equivalents (excluding tenant deposits) divided by the sum of (i) the amount of the most recent Director’s Valuation of
Vukile Property Fund — Debt Investor Presentation (July 2018) on 6ix