Redefine Properties Limited · JSE:RDF
Redefine Properties — FY2017 Earnings Presentation
67 slides from Redefine Properties's earnings presentation, November 2017
Slide 1: Redefine Properties Group Results for the year ended 31 August 2017
REDEFINE PROPERTIES LIMITED GROUP RESULTS for the year ended 31 August | 2017 DELIVERING Areverine [ SUSTAINED Value Pandan ip
Slide 2: Our conversation
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Our conversation Section 01 KEY OUTCOMES AND FINANCIAL REVIEW Section 02 CAPITAL MANAGEMENT Section 03 OVERVIEW OF PROPERTY ASSET PLATFORM Section 04 STRUCTURES
Slide 3: Key Outcomes and Financial Review
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION KEY OUTCOMES AND FINANCIAL REVIEW Section 01
Slide 4: Key outcomes
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 4 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Key outcomes Focusing on what matters most to deliver sustained value Operating margin Overall occupancy Tenant retention Operate efficiently improved Integrat
Slide 5: Financial highlights
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 5 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Financial highlights Managing the variables under our control DISTRIBUTION PER SHARE GROWTH CPS 100 92.0 86.0 80.0 74.5 80 64.0 68.7 44.3 47.2 60 38.1 41.0 Dis
Slide 6: Simplified distributable income statement
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 6 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Simplified distributable income statement Growth fuelled by acquisitions 2017 2016 Change Rm Rm % Net operating income from investment properties 4 951 4 244 1
Slide 7: Contributors to growth in distributable income
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 7 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Contributors to growth in distributable income Political uncertainty has introduced crosswinds Tailwinds Headwinds R1 109m (R233m) Rm 5,400 5,200 105 18 15 12
Slide 8: Active portfolio income analysis
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 8 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Active portfolio income analysis Tight cost control in a challenging leasing environment 2017 2016 Change Rm Rm % Active portfolio revenue* 4 487 4 311 4.1% Ac
Slide 9: Key drivers of change in net asset value per share
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 9 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Key drivers of change in net asset value per share Impairments and financial market volatility eroding NAV CPS 1,200 1,150 84.9 RDI PLC 13.0 RDI PLC 10.5 EUR 7
Slide 10: Capital Management
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION CAPITAL MANAGEMENT Section 02
Slide 11: Accessing capital
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 11 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Accessing capital Securing capital in a constrained and costly environment CAPITAL OF R18.3 bn WAS RAISED DRIVERS OF THE COST OF CAPITAL 10% Pivotal debt assu
Slide 12: Deployment of capital
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 12 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Deployment of capital Investing where best market opportunities lie CAPITAL OF R18.3 bn DEPLOYED IN 2017 NOTABLE INVESTMENTS IN 2017 Office 6.7 Pivotal acquis
Slide 13: Debt funding profile
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 13 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Debt funding profile Solid credit metrics maintained MATURITY OF SOUTH AFRICAN DEBT MATURITY OF FOREIGN DEBT SECURED AND UNSECURED DEBT Rbn Rbn % 10 10 100% 2
Slide 14: Currency analysis of property assets and borrowings
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 14 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Currency analysis of property assets and borrowings Conservative local LTV to counterbalance aggressive offshore LTV 2017 2016 Property assets Debt* LTV Weigh
Slide 15: Overview of Property Asset Platform
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION OVERVIEW OF PROPERTY ASSET PLATFORM Section 03
Slide 16: Redefine's diversified property asset platform
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 16 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Redefine’s diversified property asset platform Positioning the platform for sustained value creation Portfolio valued at R84.1 billion Direct local property p
Slide 17: Local property portfolio
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 17 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Local property portfolio Integration of acquisitions, protection, expansion and improvements REGIONAL REPRESENTATION ASSET SPLIT EXIT CAP RATE BY SECTOR 5% 5%
Slide 18: Local portfolio game plan
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 18 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Local portfolio game plan Centred on optimising risk and reward Real estate and related investments – not a particular sector Investment Exposure to key e
Slide 19: Retail portfolio
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 19 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Retail portfolio Differentiating by creating outstanding places for modern consumer lifestyles Value Renewal SPLIT BY NODE GLA Active Vacancy rental growth R2
Slide 20: Retail asset optimisation initiatives
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 20 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Retail asset optimisation initiatives Remaining relevant to the communities in which we operate Expanding Protecting Improving Kyalami Corner Cradlestone Mall
Slide 21: Office portfolio
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 21 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Office portfolio Moving to younger, more efficient, modern facilities to enable work life integration SPLIT BY NODE Value GLA Active Vacancy R23.3bn 1.4 milli
Slide 22: Office asset optimisation initiatives
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 22 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Office asset optimisation initiatives Remaining relevant through redevelopment and refurbishment Expanding Protecting Improving Galleria Rosebank 155 West Str
Slide 23: Industrial portfolio
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 23 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Industrial portfolio Location and efficiency key in cost sensitive market SPLIT BY GRADE Value GLA Active Vacancy R11.2bn 2.0 million m² 3.3% (2016 | R11.0bn)
Slide 24: Industrial asset optimisation initiatives
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 24 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Industrial asset optimisation initiatives Incorporating key design elements to functionally differentiate offering Expanding Protecting Improving Land Bank 34
Slide 25: High return investments
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 25 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION High return investments Diversifying into higher yielding non-traditional asset classes Student accommodation Loans Other Loans of R3.1 billion to various
Slide 26: International game plan
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 26 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION International game plan Centred on geographic diversification and exploiting attractive yield spreads Local partner representation and aligned interests O
Slide 27: International portfolio
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 27 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION International portfolio Geographic diversification in hard currency markets GEOGRAPHIC SPREAD SPLIT Carrying value Listed securities Direct properties 5% 26%
Slide 28: United Kingdom / Germany
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 28 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION United Kingdom / Germany Focusing on income in a low growth environment RDI PLC 29.5% Redefine’s interests International Hotel Properties Limited 27.5%
Slide 29: Australia
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 29 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Australia Exposure to stable market and global real estate investment manager Cromwell Property Group 25.3% Redefine’s Northpoint joint venture 50% intere
Slide 30: Poland
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 30 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Poland Emerging market growth in hard currency Redefine’s interests EPP 39.6% Platform profile 74.1% exposed to retail, 25.9% offices Redefine’s share of
Slide 31: Direct investment in Poland
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 31 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Direct investment in Poland Conditional agreement to acquire strategic stake in €1 billion retail portfolio Accretive to Redefine’s earnings over a Operate ef
Slide 32: Africa
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 32 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Africa Acquired with the Pivotal portfolio Morocco GRIT 6.3% Redefine’s interests Oanda Wings 37.2% GRIT operates in 5 African countries Platform profil
Slide 33: Structures that Support Value Creation
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION STRUCTURES THAT SUPPORT VALUE CREATION Section 04
Slide 34: Our mission to deliver sustained value to stakeholders
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 34 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Our mission to deliver sustained value to stakeholders We see value as more than financial returns Our mission is to Our vision is to be deliver sustained the
Slide 35: ESG highlights
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 35 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION ESG highlights Good corporate citizenship underpins sustainability Black River Park won an Increased Green Star SA award for sustainable Total installed solar
Slide 36: Our people
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 36 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Our people Our key resource and strategic differentiator HIGH LEVEL OF ENGAGEMENT MAINTAINED 424 people employed Learnership programme Highlights directly adv
Slide 37: Integrated stakeholder engagement strategy
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 37 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Integrated stakeholder engagement strategy Driving a consistent experience for all stakeholders at every touchpoint Key stakeholders Our 2018 strategic interv
Slide 38: Conclusion
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION CONCLUSION Section 05
Slide 39: Our investor value proposition
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 39 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Our investor value proposition A highly liquid entry point to gain exposure to local and offshore real estate markets Our promise We know that top investors s
Slide 40: Outlook
KEY OUTCOMES AND CAPITAL MANAGEMENT OVERVIEW OF PROPERTY STRUCTURES THAT SUPPORT CONCLUSION 40 FINANCIAL REVIEW ASSET PLATFORM VALUE CREATION Outlook A strategy that is geared to deliver sustained growth through property cycles In summary Our strategic approach has been adapted to cope in a slow-gro
Slide 41: Supplementary Information
ADVOCATES 2 PYBUS Areperine [ PROPERTIES We're not landlords. We're people.
Slide 42: Funding profile
42 Funding profile Aug 2017 Aug 2016 SOURCES OF DEBT (Rbn) Funding snapshot Rbn Rbn Standard Bank 10.4 Bank borrowings 27.1 25.2 6.7 Nedbank 5.6 Debt capital markets 5.4 2.9 4.8 Unlisted bonds 5.1 Foreign listed bond 2.3 - 4.7 Total debt 34.8 28.1 Listed Bonds 4.5 1.8 RMB 4.5 2.9 Loan to value ratio
Slide 43: Active portfolio expenditure analysis
43 Active portfolio expenditure analysis 2017 Change Rm % 2016 Property costs 752 Property admin costs: increased due to greater staff complement 29 20.4% Operating cost increases across the portfolio 28 9.5% Bad debt provision up from a low base 8 95.9% Tenant installation costs are deal driven 7 2
Slide 44: International income analysis
44 International income analysis 2017 2016 Rm Rm Echo Polska Properties N.V. 467 92 Cromwell Property Group 368 374 Redefine International PLC 287 372 German portfolio 53 84 CPT – Northpoint 78 63 Pivotal – Oanda Wings 29 0 Pivotal – Mara Delta 22 0 Spain 11 0 International Hotel Group 9 17 Bondi 0
Slide 45: Simplified statement of financial position
45 Simplified statement of financial position 2017 2016 Local International Group Local International Group Rbn Rbn Rbn Rbn Rbn Rbn Property assets 68.1 16 84.1 56.3 16.3 72.6 Goodwill & Intangible assets 5.8 - 5.8 5.3 - 5.3 Other assets 1.5 - 1.5 1.8 - 1.8 Total assets 75.4 16 91.4 63.4 16.3 79.7 S
Slide 46: Reconciliation of property assets
46 Reconciliation of property assets Rm 2016 Property assets 72 687 Deployment of capital 17 862 Disposals (4 613) Impairments (1 218) Fair value adjustments 702 IFRS write down of Delta (415) Foreign exchange adjustments (1 729) Net equity accounted profit 600 Other 272 2017 Property assets 84 148
Slide 47: Abridged statements of cash flow
47 Abridged statements of cash flow 2017 2016 Rm Rm Cash generated from operations 4 671 4 495 Interest received 622 596 Interest paid (2 644) (2 125) Taxation paid (67) (112) Net cash Inflow from operating activities 2 582 2 854 Net cash inflow / (outflow) from investing activities 1 074 (7 359) Ne
Slide 48: Active portfolio revenue growth
48 Active portfolio revenue growth Growth analysis Office Retail Industrial Total Active portfolio average rental escalation 7.7% 7.4% 7.8% 7.6% Renewals plus new lets net of expiries -4.8% -4.0% -0.4% -3.6% Growth in rental income 2.9% 3.4% 7.4% 4.0% Growth in other income 0.7% -0.1% -0.1% -0.1% Gr
Slide 49: Local portfolio overview
49 Local portfolio overview Description Office Retail Industrial Specialised Land Total 2017 Total 2016 Number of properties 118 79 101 4 25 327 312 Total GLA (m²) (million) 1.4 1.4 2.0 0.03 - 4.8 4.5 Vacancy (%) active* 8.1 3.3 3.3 - - 4.6 4.9 Vacancy (%) total 12.3 5.9 6.2 4.5 - 7.8 7.4 Asset Valu
Slide 50: Sectoral portfolio split
50 Sectoral portfolio split R’000 VALUE m² GLA 30,000,000 2,500,000 25,000,000 2,000,000 20,000,000 1,500,000 15,000,000 1,000,000 10,000,000 5,000,000 500,000 0 0 Office Retail Industrial Specialised Land Office Retail Industrial Specialised Land 2017 2016 NUMBER OF PROPERTIES R’000 GMR 140 250,000
Slide 51: Geographical portfolio split
51 Geographical portfolio split R’000 VALUE m² GLA 50,000,000 4,000,000 40,000,000 3,000,000 30,000,000 2,000,000 20,000,000 1,000,000 10,000,000 0 0 Gauteng Cape KwaZulu-Natal Other Gauteng Cape KwaZulu-Natal Other 2017 2016 NUMBER OF PROPERTIES R’000 GMR 80 400,000 70 60 300,000 50 40 200,000 30 2
Slide 52: Office sector
52 Office sector VALUE BY GRADE (%) VACANCY BY TYPE (%) 22% 19% 43% Premium 47% A Grade Secondary 34% 35% VALUE BY LOCATION (%) GMR BY LOCATION (%) 3% 4% 25% Gauteng 24% 37% * Sandton 43% Cape KwaZulu-Natal / Other 35% 29% *Excludes Sandton Redefine Group results for the year ended 31 August 2017
Slide 53: Retail sector
53 Retail sector VALUE BY TYPE (%) GMR BY TYPE (%) 7% 16% 8% 13% 6% 7% 36% 34% 35% 38% Super Regional Community / Small Regional Neighbourhood GLA BY TYPE (%) VACANCY BY TYPE (%) Regional Other 11% 8% 16% 26% 9% 29% 6% 43% 52% Redefine Group results for the year ended 31 August 2017
Slide 54: Industrial sector
54 Industrial sector VALUE BY TYPE (%) GMR BY TYPE (%) 1% 2% 8% 9% 31% 30% 31% 37% 11% 14% Warehousing 12% 14% Light Manufacturing Modern Logistics GLA BY TYPE (%) Heavy Grade Industrial VACANCY BY TYPE (%) 3% Industrial Units 9% Other 17% 24% 47% 35% 14% 36% 15% Redefine Group results for the year
Slide 55: Tenant grading
55 Tenant grading OFFICE (%) RETAIL (%) 18% 16% 15% 16% 66% 69% A Grade B Grade INDUSTRIAL (%) C Grade 6% 18% 76% Redefine Group results for the year ended 31 August 2017
Slide 56: Top 10 office properties and tenants
56 Top 10 office properties and tenants Value Property Region GLA m² Tenant GLA m² (R'000) Alice Lane Gauteng 2 588 900 70 758 Government 164 231 90 Rivonia Road Gauteng 1 150 000 39 864 Standard Bank 50 728 Black River Office Park Western Cape 1 113 694 52 735 Discovery Health 42 334 The Towers Wes
Slide 57: Top 10 retail properties and tenants
57 Top 10 retail properties and tenants Value Property Region GLA m² Tenant GLA m² (R'000) Centurion Mall Gauteng 4 136 000 118 533 Shoprite 138 290 Blue Route Mall Western Cape 1 410 890 55 496 Edcon 113 559 East Rand Mall * Gauteng 1 329 700 34 389 Pick 'n Pay 113 036 Kenilworth Centre Western Cap
Slide 58: Top 10 industrial properties and tenants
58 Top 10 industrial properties and tenants Value Property Region GLA m² Tenant GLA m² (R'000) Macsteel Various 3 437 850 552 641 MacSteel 552 641 Pepkor Isando Gauteng 833 500 107 017 Steinhoff Group 167 647 Robor Gauteng 646 000 120 277 Robor 120 277 Cato Ridge DC KwaZulu-Natal 306 371 50 628 Dawn
Slide 59: Specialised properties
59 Specialised properties Value Property Region (R'000) Hatfield Square Gauteng 517 500 Bedford Gardens Hospital Gauteng 331 676 Park Central Gauteng 116 500 Southern Sun O.R. Thambo Int. Airport Gauteng 62 454 Total 1 028 130 Balance of portfolio - Total portfolio 1 028 130 % of total specialised p
Slide 60: Land
60 Land Value Property Region Bulk m² (R'000) S & J Industrial* Gauteng 637 670 975 339 Atlantic Hills* Western Cape 161 150 250 000 Cornubia KwaZulu-Natal 287 931 97 451 Wilgespruit Gauteng 132 500 45 000 Brackengate: Western Cape - Mainland, Phase 2 121 663 279 120 - Stikland 81 546 115 690 - Tria
Slide 61: Vacancy profile
61 Vacancy profile Office Retail Industrial Specialised Total GLA m² GLA m² GLA m² GLA m² GLA m² Gauteng 140 160 57 408 109 957 1 332 308 856 Cape 9 800 7 041 5 210 - 22 051 KwaZulu-Natal 2 279 3 644 4 622 - 10 545 Other 13 495 15 953 607 - 30 055 Total 165 734 84 046 120 396 1 332 371 508 Vacancy %
Slide 62: Lease expiry profile
62 Lease expiry profile BY GLA BY GMR m² R’000 1,000 45,000 900 40,000 800 35,000 700 30,000 Thousands Thousands 600 25,000 500 20,000 400 15,000 300 200 10,000 100 5,000 0 0 Monthly 2018 2019 2020 2021 2022 Beyond Monthly 2018 2019 2020 2021 2022 Beyond 2022 2022 Office Retail Industrial Specialise
Slide 63: Acquisitions transferred between September 2016 and August 2017
63 Acquisitions transferred between 1 September 2016 and 31 August 2017 Purchase Property Province Sector Date of transfer Yield price (R’000) R300 Land - 50.1% (1) Western Cape Land 27-Sep-16 155 616 N/A Pivotal Fund Ltd (2) Various Various 01-Sep-16 10 649 399 7.34% Ptn 20 of Erf 28 Cornubia (3) K
Slide 64: Disposals transferred between September 2016 and August 2017
64 Disposals transferred between 1 September 2016 and 31 August 2017 Expected / Property Province Sector Selling price (R’000) Yield Date of transfer 320 West Street - Office Component (1) KwaZulu Natal Office 13-Sep-16 64 025 5.06% 101 Market Street Gauteng Retail 14-Sep-16 34 300 12.61% Argyle Cen
Slide 65: Development activity
65 Development activity Development activity by sector Completed developments (R’000) Active developments (R’000) Committed future projects (R’000) Office 1 537 921 1 187 650 1 003 713 Industrial 404 112 1 369 283 772 736 Retail 1 127 478 714 556 325 552 Specialised 89 552 1 979 659 891 751 Total 3
Slide 66: The macro environment
66 The macro environment OPERATING CONTEXT Top risks Uncertainty and impact from potential for further sovereign credit downgrades Prolonged sluggish or negative economic growth Impact of disruptive technologies Financial market volatility Mis-alignment with international (in-country) part
Slide 67: Direct investment in Poland - transaction overview
67 Direct investment in Poland - transaction overview The consortium Redefine 25%, Pimco 37.5% and Oaktree Capital 37.5% The portfolio Shopping center portfolio comprising 9 mid-market hypermarket-anchored properties with a GLA of 383 000m² Power Park portfolio comprising 4 properties anchored