Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — Investor Presentation (November 2011)
12 slides from Emira Property Fund's investor presentation, November 2011
Slide 1: Investor Update
November 2011 Investor Update
Slide 2: Economic Background
November 2011 ECONOMIC BACKGROUND Global economic growth is expected to be +3.5% in 2011, driven by emerging markets, which have (i) low levels of gearing (ii) good local demand and (iii) the potential to stimulate via lower i-rates The USA and UK are both suffering from a “balance sheet recession”
Slide 3: Where Are We in the Property Cycle?
November 2011 WHERE ARE WE IN THE PROPERTY CYCLE? BOOM MARKET Excess Funding Overbuilding Increasing Rent Concession Construction 12 Saturated Market Funding Available Tightened Funding 9 3 Less Construction Increasing Rents Industrial Office RECOVERY Reduced Funding Retail – Stabilizing Rents natio
Slide 4: Tenant Retention: Year-to-Date (Sept '11)
November 2011 TENANT RETENTION: YEAR-TO-DATE (SEPT ‘11) m2 FY10 FY11 FY12 YTD Expiring 276 207 327 628 74 412 Renewed 147 954 185 212 42 156 As a % 54% 57% 57% • Retention ratio y-t-d is at a similar level to FY11, although this should improve as tenants who have stayed on monthly basis are secured
Slide 5: Reversions: Renewals Year-to-Date (Gross Rentals)
November 2011 REVERSIONS: RENEWALS YEAR-TO-DATE (GROSS RENTALS) Avg new lease Sector Area Avg expiry rental Increase/(Decrease) rental Office 36 238 101.97 104.10 2.1% Retail 22 168 112.86 105.54 (6.5%) Industrial 46 804 44.65 43.34 (2.9%) Total 105 210 78.21 77.62 (0.7%) • Office 21/33 buildings up
Slide 6: Reversions: New Leases Year-to-Date (Gross Rentals)
November 2011 REVERSIONS: NEW LEASES YEAR-TO-DATE (GROSS RENTALS) Avg expiry Avg new lease Sector Area Increase/(Decrease) rental rental Office 5 561 119.40 96.29 (19.4%) Retail 2 565 157.49 141.75 (10.0%) Industrial 1 984 53.92 48.62 (9.8%) Total 10 117 117.88 100.06 (15.1%) • Office 2/11 buildings
Slide 7: Reversions: New Leases + Renewals Year-to-Date (Gross)
November 2011 REVERSIONS: NEW LEASES + RENEWALS YEAR-TO-DATE (GROSS) Avg expiry Avg new lease Sector Area Increase/(Decrease) rental rental Office 41 799 104.06 103.06 (1.0%) Retail 24 733 118.31 109.29 (7.6%) Industrial 48 788 45.03 43.56 (3.3%) Total 115 336 81.63 79.59 (2.5%) • Given the reversio
Slide 8: Vacancy Profile at Oct '11 by GLA
November 2011 VACANCY PROFILE AT OCT ’11 BY GLA 25% 21.7% 20% 18.0% 18.4% 15% 12.2% 11.4% 11.5% 10% 8.2% 8.0% 6.9% 7.5% 7.2% 4.9% 5% 0% Office Retail Industrial Portfolio Dec 2010 Jun 2011 Oct 2011 • Slightly improved six months, with benefits of leasing programme evident • Potential changes: Oracle
Slide 9: Asset and Property Management
November 2011 ASSET AND PROPERTY MANAGEMENT Vacancy • Letting of space • Improve tenant profile • Improve broker relationships Tenant Retention • Renew tenants • Maintain & improve tenant relationships • Identify tenant needs Rental collection • Arrears • Legals • Rental statements Building maintena
Slide 10: Projects Not Yet Complete
November 2011 PROJECTS NOT YET COMPLETE Project Value (R’m) Completion Menlyn at Podium 176.1 Apr 12 267 West 36.3 Sep 11 Cresta Corner 32.0 Oct 11 Market Square 28.8 Mar 12 Albury Office Park 19.1 Feb 12 Total 297.0 • Yield on completion – all 7 projects = +10% • Included in above: Tramshed & Park
Slide 11: Disposals
November 2011 DISPOSALS Name Location Sector GLA Value (Rm) Fwd Yield Transfer Howick Gardens Midrand Office 3 075 20.7 9.4% Aug 10 QD House Kyalami Industrial 3 470 16.6 11.7% Sep 10 Standard Bank Glenwood Durban Retail 368 5.0 11.6% Sep 10 8 Grader Spartan Industrial 3 437 12.5 9.0% Dec 10 Nampak
Slide 12: Financial Assumptions
November 2011 FINANCIAL ASSUMPTIONS Gross income top line growth is slowing due to anticipated vacancies, rental reversions, as well as the sale of non-core properties, boosted however by rising municipal recoveries Expenses municipal charges, leasing and refurbishment costs are expected to continue
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