Growthpoint Properties Limited · JSE:GRT
Growthpoint Properties — FY2021 Earnings Presentation
107 slides from Growthpoint Properties's earnings presentation, September 2021
Slide 1: Annual Results Presentation for the Year Ended 30 June 2021
ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2021
Slide 2: Agenda
1 Strategy in Action AGENDA 2 Group Salient Features 3 Financial Results 4 International Investments ▪ Growthpoint Properties Australia - GOZ ▪ Globalworth - GWI ▪ Capital & Regional – C&R 5 South ▪ RSA African Portfolio Update ▪ V&A Waterfront 6 ▪Funds Management Update Growthpoint Healthcare Prope
Slide 3: Strategy in Action
STRATEGY IN ACTION Oxford Corner, Rosebank
Slide 4: Focus on liquidity and strengthening the balance sheet
In the short to medium term our focus is on liquidity and strengthening the balance sheet to enable us to pursue our strategic initiatives which all remain relevant ▪ R4.3bn equity raise in November 2020 at R12.00 per share which was 2.7x oversubscribed ▪ 43.2% of shareholders elected the share alte
Slide 5: Continued New Revenue Streams
Continued New Revenue Streams 1.Trading & Development ▪ We continue to see our development expertise as a competitive advantage ▪ Speculative development suspended for now ▪ R193.0m of third-party trading profits and development fees, and rental income from trading & development assets 2. Funds Mana
Slide 6: Group Salient Features
GROUP SALIENT FEATURES Sterling Industrial, Midrand
Slide 7: Group salient features
6.6% increase in revenue (excluding straight-line lease income adjustments) from FY20 to R12.8bn R5.1bn distributable income, 7.8% decrease from FY20 148.1 cents distributable income per share, 19.1% decrease from FY20 R152.8bn group property assets, 8.4% decrease from FY20 40.0% Group LTV improved
Slide 8: Financial Results
FINANCIAL RESULTS Mill Road Industrial Park, Bellville, Cape Town
Slide 9: R426m Decrease in Distributable Income
R426m DECREASE IN DISTRIBUTABLE INCOME ▪ Weaker operating environment with higher vacancies and deteriorating negative renewal growth impacting revenue ▪ Less COVID-19 discounts and deferrals vs. FY20, impacting revenue positively ▪ Decrease in property expenses due to the reversal of bad debts prev
Slide 10: 7.8% Decrease in Distributable Income
7.8% DECREASE IN DISTRIBUTABLE INCOME 10.0% 8.0% 0.3% -0.1% 0.1% 0.3% -3.5% 6.0% 3.0% 4.0% 4.5% -4.5% 2.0% 0.0% -2.0% -4.0% -7.9% -7.8% -6.0% -8.0% -10.0% RSA RSA Trading Trading & Lango Africa Healthcare Healthcare Funds Funds GOZ V&A V&A C&R CapReg GWI Distributable Distributable Development Devel
Slide 11: Distributable Income & SA REIT FFO
DISTRIBUTABLE INCOME & SA REIT FFO FY21 FY20 INCREASE/ Rm Rm (DECREASE) Gross property income 12 804 12 008 6.6% RSA 7 859 7 965 (1.3%) GOZ 3 229 3 024 6.8% C&R 1 234 715 72.6% GHPH 289 263 9.9% Trading & Development(1) 193 41 >100% Property expenses (3 436) (3 234) 6.2% RSA (2 204) (2 360) (6.6%) G
Slide 12: Distributable Income & SA REIT FFO cont.
DISTRIBUTABLE INCOME & SA REIT FFO cont. FY21 FY20 INCREASE/ Rm Rm (DECREASE) Net property income after finance costs 5 395 5 054 6.7% Finance income and other investment income 921 1 314 (29.9%) Investment income from V&A Waterfront(1) 365 606 (39.8%) Investment income from GWI 370 571 (35.2%) Othe
Slide 13: Consolidated Balance Sheet (Extracts)
CONSOLIDATED BALANCE SHEET (EXTRACTS) FY21 FY20 INCREASE/ Rm Rm (DECREASE) Property portfolio 128 790 140 013 (8.0%) RSA 68 796 73 404 (6.3%) GOZ(1) 49 462 51 845 (4.6%) C&R(1) 10 532 14 764 (28.7%) Equity investments 15 003 17 537 (14.4%) Investment in V&A Waterfront (50.0%) 6 336 7 163 (11.5%) Inv
Slide 14: International Investments
INTERNATIONAL INVESTMENTS GOZ 3 Murray Rose Avenue, Sydney Olympic Park, New South Wales
Slide 15: GOZ: Our Investment and Strong Balance Sheet
Our Investment ▪ 62.2% investment in GOZ at a cost of R9.6bn vs. R20.9bn market value ▪ A$ dividend of 20.0 cents received for FY21 vs. 21.8 cents for FY20, reflecting decision to maintain a more conservative payout ratio ▪ Remains a core investment market for us given our experience & knowledge Str
Slide 16: GOZ: Portfolio Update, Disposals & Developments
Portfolio Update ▪ Defensive and well positioned quality portfolio with strong tenancies ▪ Portfolio occupancy increased to 97% ▪ Significant leases signed in FY21 for average of 8.2 years ▪ 3.4% WARR ▪ 6.2 years WALE ▪ Achieved largest like-for-like 12-month valuation uplift since Group’s inception
Slide 17: International Investments: GWI
INTERNATIONAL INVESTMENTS GWI Globalworth Campus, Bucharest
Slide 18: GWI: Our Investment, Balance Sheet, Portfolio
Our Investment ▪ 29.3% investment in GWI at a cost of R8.4bn vs. R7.6bn market value ▪ The consortium of CPI Property Group and Aroundtown holds 60.6% of GWI, following the completion of a cash offer of shares at €7.00 which we did not accept ▪ Significant reduction in € dividend to 30 cents for FY2
Slide 19: GWI: Acquisitions, Development, COVID-19 Impact
Acquisitions ▪ €18m acquisition of 2 high-quality industrial properties in Romania ▪ Additional auxiliary land acquired in select existing projects to facilitate their further development Development Projects ▪ Delivered two class-A offices and two industrial facilities adding 90 800 m² of high-qual
Slide 20: International Investments: C&R
INTERNATIONAL INVESTMENTS C&R Walthamstow
Slide 21: C&R: Our Investment and COVID-19 Impact
Our Investment ▪ 52.1% investment in C&R at a cost of R3.0bn vs. R833.3m market value ▪ COVID-19 has had a severe impact on our investment case ▪ Strong management team ▪ No dividend for FY21 COVID-19 Impact ▪ All aspects of the company’s operations materially affected by UK Government measures to m
Slide 22: C&R: Portfolio Update and Balance Sheet
Portfolio Update ▪ 7 dominant, in-town, needs-based retail assets ▪ Well positioned with its community centre strategy with a high proportion of non-discretionary retail ▪ Only 19% of contracted rent is from fashion operators ▪ Net rental income reduced to £31.9m due to the pandemic and associated r
Slide 23: South African Portfolio Update: RSA
SOUTH AFRICAN PORTFOLIO UPDATE RSA Walmar Woodlands Office Park, Woodmead, Johannesburg
Slide 24: RSA Salient Features
RSA SALIENT FEATURES Recovered R173m or 90.1% of total deferrals granted since FY20 R475m in rental discounts given to tenants since April 2020 65.4% renewal success rate vs. 66.4% at FY20 Average collection rate of 99.7% for FY21 1.2 million m² of space let in FY21 35.1% SA LTV vs. 39.8% at FY20 an
Slide 25: Discounts, Deferments and Bad Debts
DISCOUNTS, DEFERMENTS AND BAD DEBTS Total FY21 FY20 Cumulative Rm Rm Rm Discounts granted 198 277 475 Net deferrals (124) 142 18 Deferrals granted 32 159 191 Deferrals recovered (156) (17) (173) COVID-19 direct expenses 6 7 13 Total expenses and relief provided 80 426 506 Deferment back into income
Slide 26: Retail: KPI
46 1 356 981 R24 915m RETAIL: KPI Number of properties GLA (m²) Value FY21 FY20 ▪ Core vacancy, excluding offices is 5.5% ▪ Largest vacancy at the Avenues in Springs is 13 546m², this has been identified as a non-core TO LET Vacancies 6.2% 5.1% property and is on our disposal list ▪ Two Game stores
Slide 27: Retail: KPI cont.
RETAIL: KPI cont. FY21 FY20 ▪ Impacted by increased vacancies and significant reversions Lfl NPI growth (3.7%) 1.2% ▪ Impacted by bad debts written off of R51.1m ▪ Impacted by lower parking revenue of R18.1m ▪ Density growth driven by strong performance from supermarkets, home, electronics, value fa
Slide 28: Office: KPI
165 1 705 846 R27 642m OFFICE: KPI Number of properties GLA (m²) Value FY21 FY20 ▪ Spread across multiple buildings and all regions with Gauteng at 22%, Western Cape 14%, KZN at 11% ▪ The Sandton region represents 21% of the GLA of the portfolio with vacancies at 25% TO LET Vacancies 19.9% 15.4% ▪ 4
Slide 29: Industrial: KPI
208 2 262 728 R12 373m INDUSTRIAL: KPI Number of properties GLA (m²) Value FY21 FY20 ▪ Bigger space impacted by business rescues, liquidations and consolidations: − 22 770m² at the Isobar facility where Consolidated Steel, who are in business rescue, have vacated − 12 040m² at Chain Ave vacated by W
Slide 30: Trading & Development
TRADING & DEVELOPMENT Rental Income ▪ R71m of NPI from Cintocare, Woodburn Square and Bakers Transport Cato Ridge Third Party Development Fees ▪ R7.3m of third-party development fees earned Trading Profits ▪ R115m trading profits earned Development Update Activity has been scaled back to tenant driv
Slide 31: ESG at Growthpoint
ESG AT GROWTHPOINT With integrity, ethics and our values guiding our governance, we provide space to thrive in environmentally friendly buildings, whilst improving the social and material wellbeing of individuals and communities. Why is ESG important to us Corporate Future proof assets Value beyond
Slide 32: Our ESG Achievements
OUR ESG ACHIEVEMENTS Undertaken a climate Continued Board approval of rated impact assessment commitment to B-BBEE Review of our Review of our ESG strategy with scenario planning investment in solar level 2 Ethics Code of Conduct numerous policies Development of Setting new targets Development of a
Slide 33: South African Portfolio Update: V&A Waterfront
SOUTH AFRICAN PORTFOLIO UPDATE V&A WATERFRONT V&A Waterfront
Slide 34: V&A Waterfront: Highlights and Financial Metrics
Highlights ▪ 9 350m² head office for Deloitte was completed in December 2020 and received a 6-Star green star design rating ▪ Makers Landing, the 3 300m² kitchen incubator opened in December 2020 ▪ The reconfiguration of the ex-Edgars premises, which includes the extension of Zara, will be completed
Slide 35: V&A: Impact of COVID-19 Retail and Office
Impact of COVID-19 Retail ▪ Retail sales steadily increased until the harsher lockdown restrictions were imposed from June 2021 due to the 3rd wave of COVID-19 ▪ May 2021 footfall levels were 72% compared to May 2019. This subsequently reduced to 56% in July 2021 ▪ Vacancy levels, excluding premises
Slide 36: V&A: Impact of COVID-19 Hotels & Residential
Impact of COVID-19 Hotels & Residential ▪ Hotels re-opened in a phased fashion between October and December 2020 and currently all hotels except the Commodore are trading ▪ 5- and 6-star hotels in the V&A generate 70% - 75% of their revenue from international tourism and are materially affected by t
Slide 37: Funds Management Update
FUNDS MANAGEMENT UPDATE Paardevlei Hospital, Somerset West
Slide 38: Growthpoint Healthcare Property Holdings - GHPH
Growthpoint Healthcare Property Holdings - GHPH ▪ Total of R973m capital raised from third parties with our effective shareholding at 62.2% ▪ Transaction concluded for a U$80m equity and convertible debt package from the International Finance Corporation to finance development and acquisition opport
Slide 39: Lango Real Estate Limited
Lango Real Estate Limited ▪ Previously Growthpoint Investec African Properties (GIAP) ▪ 16.1% shareholding in Lango at a cost of R727m and valued at R758m ▪ Significant growth with NAV having grown to US$320m ▪ Quality portfolio of income-producing real estate assets ▪ US$600.9m property portfolio o
Slide 40: Capital Management
CAPITAL MANAGEMENT The Silos, V&A Waterfront
Slide 41: RSA Capital Management
RSA CAPITAL MANAGEMENT Total nominal debt R37.8bn ▪ GBP debt repaid from capital raise and EUR debt re-financed in ZAR ▪ R2.3bn of debt maturing in next 12 months of which R1.8bn are listed bonds ▪ Weighted average term of debt at 3.1 years ▪ 57.0% is unsecured vs. 43.0% secured ▪ Moody's global sca
Slide 42: Conclusion
CONCLUSION A4, 52 Merivale Street, South Brisbane, Queensland
Slide 43: Conclusion: South Africa and V&A Waterfront
SOUTH AFRICA ▪ GDP contraction of 7.0% for 2020 with growth of c. 4% for 2021 following the stronger than expected first quarter outcome for 2021 ▪ Real GDP expected to settle at just below 2% per annum post 2021 ▪ Multi-year recovery for GDP to reach pre-pandemic levels ▪ Recent social unrest an ad
Slide 44: Conclusion: GOZ and GWI
GOZ ▪ Strong capital position with gearing and distribution payout ratio at historic lows ▪ Experienced management team with long-term successful track record ▪ Resilient with immaterial direct COVID-19 impact ▪ 97% of portfolio leased to government and listed or large organisations ▪ Occupancy at 9
Slide 45: Conclusion & Dividend Guidance
C&R ▪ Pure UK retail REIT severely impacted by COVID-19 ▪ COVID-19 accelerating structural trends that were already underway in the retail industry ▪ Government easing of restrictions from April 2021 and UK advances in vaccination programme provide route for return to more normal trading conditions
Slide 46: Annexures
ANNEXURES 1 Discovery Place, Sandton
Slide 47: Annexure Contents
ANNEXURE CONTENTS 01 Company highlights 09 Expense to income ratios (IFRS) 02 NAV and market capitalisation 10 Expense to income ratios (gross) 03 DIPS vs. DPS (cents) 11 RSA diversified borrowings - nominal value 04 RSA portfolio overview 12 RSA facilities 05 Group investments portfolio overview 13
Slide 48: Annexure Contents
ANNEXURE CONTENTS 17 Fixed interest rate expiry profile RSA 25 Split of RSA property portfolio Shares issued & beneficial shareholders holding 18 >2% at FY21 26 Net property income analysis RSA 19 RSA quarterly billings & collections 27 Acquisitions & disposals RSA 20 RSA COVID-19 28 Non-current ass
Slide 49: Annexure Contents
ANNEXURE CONTENTS 33 Industrial overview RSA 41 Net property income analysis V&A Waterfront (50%) 34 Healthcare overview RSA 42 V&A Waterfront overview 35 GLA & vacancy reconciliation RSA 43 GLA & vacancy reconciliation V&A Waterfront (50%) 36 Key performance indicators V&A Waterfront (50%) 44 Key p
Slide 50: Annexure Contents
ANNEXURE CONTENTS 49 Net property income analysis GOZ 50 GOZ overview 51 GLA & vacancy reconciliation GOZ 52 Key performance indicators C&R 53 Split of C&R property portfolio 54 Developments & commitments C&R 55 Net property income analysis C&R 56 C&R overview 50
Slide 51: Company Highlights
ANNEXURE 01: COMPANY HIGHLIGHTS COMPANY HIGHLIGHTS INVESTMENT PROPOSITION ▪ Largest South African primary listed REIT ▪ Quality of earnings, underpinned by high-quality physical property assets ▪ 38th largest company in the FTSE/JSE Top 40 Index ▪ Diversified across international geographies, sector
Slide 52: NAV and Market Capitalisation
ANNEXURE 02: NAV AND MARKET CAPITALISATION Rbn cents 180 3000 160 2500 140 120 2 023c 2000 100 1 490c 1500 80 60 1000 40 500 20 0 0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NAV per share (cents) 52
Slide 53: DIPS vs. DPS (cents)
ANNEXURE 03: DIPS vs. DPS (cents) Total DIPS 195.8 Total DIPS 208.6 Total DIPS 218.1 Total DIPS 183.1 Total DIPS 148.1 Total DPS 195.8 Total DPS 208.6 Total DPS 218.1 Total DPS 146.0 Total DPS 118.5 112.3 112.3 107.4 107.4 106.0 106.0 105.8 105.8 101.2 101.2 100.8 100.8 95.0 95.0 77.1 75.0 73.1 60.0
Slide 54: RSA Portfolio Overview
ANNEXURE 04: RSA PORTFOLIO OVERVIEW TRADE & RETAIL OFFICE INDUSTRIAL HEALTHCARE RSA TOTAL DEVELOPMENT Number of properties 46 165 208 6 6 431 GLA (m²) 1 356 981 1 705 846 2 262 728 89 637 55 403 5 470 595 Vacancy (m²)(1) 84 443 339 933 212 538 - n/a 636 914 Vacancy (%)(1) 6.2 19.9 9.4 - n/a
Slide 55: Group Investments Portfolio Overview
ANNEXURE 05: GROUP INVESTMENTS PORTFOLIO OVERVIEW V&A (1) GOZ (1) (3) C&R Number of properties 1 55 7 GLA (m²) 232 531 1 033 028 350 980 Vacancy (m²)(4) 6 895 23 400 63 836 Vacancy (%)(4) 3.0 2.9 10.3 Valuation (Rm)(4) 8 801 49 462 10 532 Value per m² (excl. bulk)(4) R36 053 A$4 376 £1
Slide 56: Property Investment Activities
ANNEXURE 06: PROPERTY INVESTMENT ACTIVITIES TRADING & RSA RETAIL OFFICE INDUSTRIAL HEALTHCARE DEVELOPMENT(2) TOTAL GOZ(1) C&R(1) TOTAL V&A(1) ANNEXURES Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Opening balance – 1 July 2020 26 656 29 471 13 285 2 620 900 72 932 49 995 14 385 137 312 9 413 Purchase price of acqu
Slide 57: Adjustment for NCI, FX and Normal Taxation
ANNEXURE 07 ADJUSTMENT FOR NCI, FOREIGN EXCHANGE PROFIT/(LOSS) AND NORMAL TAXATION INCREASE/ FY21 FY20 (DECREASE) Adjustment for NCI, foreign exchange profit/(loss) and normal taxation (1 264) (890) 42.0% Antecedent 17 31 NCI GOZ (671) (761) NCI Healthcare (77) (50) NCI C&R - (108) Amortisation of i
Slide 58: Offshore Contribution
ANNEXURE 08: OFFSHORE CONTRIBUTION Book Value of Property Assets 39.9% Offshore EBIT 29.1% Offshore R126 187m R140 017 R129 005 R8 797m R8 431m R8 604m 7 692 5.5% 5 487 4.3% 598 6.8% 19 168 2.0% 286 3.3% 17 226 12.3% 12 788 10.1% 726 8.6% 692 15 174 11.8% 8.0% 1 449 16.5% 25 528 20.2% 1 483 17.6% 1
Slide 59: Expense to Income Ratios (IFRS)
ANNEXURE 09: EXPENSE TO INCOME RATIOS (IFRS) SOUTH AFRICA V&A WATERFRONT GOZ 29.0% 33.6% 31.2% 31.7% 38.4% 46.6% 20.5% 21.2% 23.5% 7.4% 3.0% 4.5% 3.2% 4.3% 3.4% 6.0% 39.2% 5.1% 35.4% 5.1% 29.2% 26.9% 28.5% 25.6% 16.1% 17.5% 15.4% FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Operating Expense Ratio P
Slide 60: Expense to Income Ratios (Gross)
ANNEXURE 10: EXPENSE TO INCOME RATIOS (GROSS)* SOUTH AFRICA V&A WATERFRONT GOZ 41.2% 44.5% 41.8% 37.4% 43.7% 56.0% 21.4% 22.1% 23.5% 6.1% 3.7% 2.8% 3.4% 3.7% 2.9% 49.9% 40.8% 38.1% 40.9% 6.0% 37.8% 5.1% 5.0% 34.5% 16.3% 17.1% 17.5% FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Operating Expense Ratio
Slide 61: RSA Diversified Borrowings - Nominal Value
ANNEXURE 11: RSA DIVERSIFIED BORROWINGS — NOMINAL VALUE R35 240m R43 373m R37 836m 7 374 Debt capital 6 071 5 980 market 48.1% Unsecured 56.5% Debt capital Debt capital 13 498 market Unsecured market 49.3% 57.0% 47.2% Unsecured 12 569 10 650 57.1% 3 629 2 553 2 941 3 476 2 553 2 552 Traditional Trad
Slide 62: RSA Facilities
ANNEXURE 12: RSA FACILITIES RSA facilities FY21 FY20 Unutilised committed facilities (Rbn) 6.5 3.1 Weighted average term of liabilities (years) 3.1 3.6 Weighted average term of fixed interest rate profile (Incl. A$, £ & € CCIRS and IRS) (years) 2.8 3.1 Weighted average interest rate (%) 7.8 8.2 Weig
Slide 63: Loan to Value and Interest Cover Ratios
ANNEXURE 13: LOAN TO VALUE AND INTEREST COVER RATIOS SOUTH AFRICA GOZ(2) C&R(2) GROUP 65.5% 14 14 14 14 60% 60% 60% 60% 12 12 12 12 50% 50% 50% 50% 10 10 51.4% 10 10 40% 40% 40% 40% 43.9% 39.8% 40.0% 36.7% 8 8 8 8 35.1% 35.2% 31.8% 30% 30% 30% 31.2% 30% 6 6 6 6 27.6% 20% 20% 20% 20% 4 4 4 4 10% 10%
Slide 64: Group Look Through LTV
ANNEXURE 14: GROUP LOOK THROUGH LTV SA REIT BPR LTV (100% RSA A&L, 100% GOZ A&L, 100% C&R A&L, 50% V&A NAV, 29.3% GWI NAV) Total property-related assets R148 335m 1 Total debt (net of cash) R59 352m LTV 40.0% LTV (100% RSA A&L, 62.2% GOZ NAV, 52.1% C&R NAV, 50% V&A NAV and 29.3% GWI NAV) Total prope
Slide 65: Loan Exposure per Financier RSA
ANNEXURE 15: LOAN EXPOSURE PER FINANCIER RSA Investec JSE (Corporate Bonds) 33% Liberty 2% 4% Standard 5% Bank 6% Old Mutual Absa 9% Euronext (Eurobonds) 16% 12% RMB 13% Nedbank 65
Slide 66: Debt Expiry Profile per Financier RSA
ANNEXURE 16: DEBT EXPIRY PROFILE PER FINANCIER RSA 6% 33% 16% 16% 21% 4% 1% 3% 35% 30% 25% 20% 15% 10% 5% 0% FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Absa Investec JSE (Corporate Bonds) Euronext (Eurobonds) Liberty Nedbank Old Mutual RMB Standard Bank 66
Slide 67: Fixed Interest Rate Expiry Profile RSA
ANNEXURE 17: FIXED INTEREST RATE EXPIRY PROFILE RSA 25% 15% 6% 23% 15% 23% 9% 5% 2% 2% 20% 15% 10% 5% 0% Floating FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 67
Slide 68: Shares Issued & Beneficial Shareholders >2%
ANNEXURE 18: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY21 SHARES % HOLDING SHARES HELD Opening balance 1 July 2020 3 022 496 382 Government Employees Pension Fund 13.9 477 083 787 New shares issued (November 2020) 358 333 333 Prudential Portfolio Managers 5.8 198 922 352 Sesfikile Cap
Slide 69: RSA Quarterly Billings & Collections
3 058 838 3 049 532 Q1 2020 2 436 400 2 180 474 Q2 2020 2 771 112 2 640 276 Q3 2020 2 845 839 2 840 008 Q4 2020 2 893 907 All Sectors 2 928 612 Q1 2021 2 790 663 Q2 2021 2 856 800 1 186 466 1 186 758 ANNEXURE 19: Q1 2020 885 133 720 740 Q2 2020 1 055 215 988 024 Q3 2020 1 032 607 1 025 860 Retail Q4
Slide 70: COVID-19 Rental Discounts and Deferrals
ANNEXURE 20: COVID-19 Rental Discounts Deferrals & Recovery Trading & Trading & All Sectors Retail Office Industrial All sectors Retail Office Industrial Healthcare Development Development FY20 277 481 998 238 175 319 28 083 366 10 278 737 944 575 FY20 Deferral (158 793 447) (4 109 557) (71 634 252)
Slide 71: RSA Arrears
ANNEXURE 21: RSA ARREARS (Rm) 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0 Constantia Village, Cape Town 71
Slide 72: RSA Collections
ANNEXURE 22: RSA COLLECTIONS 160% 140% 120% 100% 80% 60% 40% 20% 0% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan21 Feb21 Mar21 Apr21 May21 Jun21 All sectors 75% 85% 112% 95% 92% 98% 97% 102% 99% 100% 103% 101% 100% 102% 105% Retail 52% 70% 151% 93% 92% 96% 97% 98% 98% 101% 107%
Slide 73: Key Performance Indicators RSA
ANNEXURE 23: KEY PERFORMANCE INDICATORS RSA FY21 FY20 Vacancies (%) 11.6 9.5 Total arrears (Rm) 308.2 511.0 Provision for bad debts (B/S) (Rm) 174.5 254.0 Bad debts (I/S) (Rm) 29.9 236.5 Average in force escalations (%) 7.3 7.5 Renewal success rate (%) 65.4 66.4 Total letting success rate (%) 65.1 6
Slide 74: Portfolio Overview RSA (excl. V&A)
ANNEXURE 24: PORTFOLIO OVERVIEW RSA (EXCL. V&A) NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE R6 416m R5 857m R6 099 450 440 431 R78 304 R73 404 R68 796 1.2% 1.1% 3.3% 1.1% 1.1% 1.4% 0.5% 3.1% 1.1% 0.9% 4.2% 1.4% 3.4% 0.9% 3.8% 17.7% 1.2% 3.6% 1.5% 19.0% 17.5% 19.0% 48.7% 4.1% 18
Slide 75: Split of RSA Property Portfolio
ANNEXURE 25: SPLIT OF RSA PROPERTY PORTFOLIO VALUE GLA VALUE GLA 2% 2% 1% 2% 1% 4% 4% 5% 3% 8% 18% 31% 12% 40% 11% 41% 50% 57% 22% 25% 36% 25% Office Retail Industrial Greater JHB Western Cape Kwazulu-Natal Healthcare Trading & Development Pretoria Eastern Cape North West 75
Slide 76: Net Property Income Analysis RSA
ANNEXURE 26: NET PROPERTY INCOME ANALYSIS RSA FY21 FY20 INCREASE/ Rm Rm (DECREASE) Gross property revenue 8 341 8 269 0.9% Retail 3 116 3 108 0.3% Office 3 193 3 342 (4.5%) Industrial 1 550 1 515 2.3% Healthcare 289 263 9.9% Trading & Development 193 41 >100% Property expenses (2 242) (2 412) (7.0%)
Slide 77: Acquisitions & Disposals
ANNEXURE 27: ACQUISITIONS & DISPOSALS PURCHASE PRICE ACQUISITIONS SECTOR DATE Rm YIELD Devcon Office Park, Rivonia, Sandton Trading & Development August 2020 70.0 11.5 31B Impala Road, Sandton Office May 2021 21.0 6.2 Telecommunication assets Industrial Various 24.0 n/a Paardevlei Hospital Somerset
Slide 78: Non-Current Assets Held for Sale RSA
ANNEXURE 28: NON-CURRENT ASSETS HELD FOR SALE RSA FY21 NON-CURRENT ASSETS HELD FOR SALE SECTOR Rm Morningside 1331, Morningside, Sandton Office 69.0 22 Impala Road, Chiselhurston, Johannesburg Office 15.0 13 Autumn Road (Devcon Place), Rivonia, Sandton Office 10.0 Hewett, Epping, Cape Town Industria
Slide 79: Developments & Capital Expenditure RSA
ANNEXURE 29: DEVELOPMENTS & CAPITAL EXPENDITURE RSA TOTAL COST ESTIMATED FY21 DEVELOPMENTS & CAPITAL EXPENDITURE(1) SECTOR Rm COMPLETION DATE Rm Lakeside Mall, Benoni Retail 13.4 September 2021 23.7 Other, below R30m Retail Various Various 155.8 Total Retail 179.5 Woodlands Office Park, Woodmead, Jo
Slide 80: Commitments RSA
ANNEXURE 30: COMMITMENTS RSA ESTIMATED APPROVED COMPLETION/ DEVELOPMENT FY21 COMMITMENTS SECTOR TRANSFER DATE COST Rm Rm Lakeside Mall, Benoni Retail September 2021 13.4 1.5 Beckman Coulter, Samrand, Midrand Industrial December 2021 66.0 53.2 Centralpoint, Samrand, Midrand Industrial September 2021
Slide 81: Retail Overview RSA
ANNEXURE 31: RETAIL OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria 1 788 56 266 The Foschini Group Ltd 77 673 Festival Mall, Kempton Park, Johannesburg 1 687 82 826 Pepkor Holdings Ltd 72 883 Waterfall M
Slide 82: Office Overview RSA
ANNEXURE 32: OFFICE OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Discovery 1 & 2 (55%), Sandton, Johannesburg 2 463 64 127 Discovery Holdings Ltd (55%) 66 714 Woodlands Office Park, Woodmead, Johannesburg 1 650 113 703 Anglo Corporate Services South Africa (P
Slide 83: Industrial Overview RSA
ANNEXURE 33: INDUSTRIAL OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Growthpoint Business Park, Midrand 416 68 261 The Bidvest Group Ltd 52 571 Hilltop Industrial Estate, Elandsfontein, Johannesburg 393 76 283 Adcock Ingram Holdings Ltd 28 805 Montague Busine
Slide 84: Healthcare Overview RSA
ANNEXURE 34: HEALTHCARE OVERVIEW RSA FAIR VALUE GLA GLA(1) PROPERTIES BY VALUE Rm m² TENANTS m² Hillcrest Private Hospital, Hillcrest, Durban 749 20 445 Busamed Holdings Ltd 55 471 Gateway Private Hospital, Umhlanga Ridge, Durban 738 22 609 Netcare Ltd 18 480 N1 Hospital, Goodwood, Cape Town 512 14
Slide 85: GLA & Vacancy Reconciliation RSA
ANNEXURE 35: GLA & VACANCY RECONCILIATION RSA TOTAL GLA VACANT AREA VACANCY m² m² % Balance as at 1 July 2020 5 493 733 523 157 9.5 GLA adjustments 45 718 31 141 Disposals (97 029) (52 495) Acquisitions 25 615 13 198 Developments and extensions 4 997 4 997 Leases expired in the period(1) 1 097 122 R
Slide 86: KPIs V&A Waterfront (50%)
ANNEXURE 36: KEY PERFORMANCE INDICATORS V&A WATERFRONT (50%) FY21 FY20 Vacancies (%) 3.0 1.5 Total arrears, net of rental discounts provided for (Rm) 85.0 66.8 Provision for bad debts (B/S) (Rm) 30.5 13.7 Bad debts (I/S) (Rm) 18.4 6.8 Average in force escalations (%) 6.4 7.5 Renewal success rate (%)
Slide 87: Split of V&A Waterfront Property Portfolio
ANNEXURE 37: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO PROPERTY PORTFOLIO PROPERTY PORTFOLIO NET PROPERTY DEVELOPED VS. BY VALUE BY GLA INCOME(1) UNDEVELOPED BY VALUE 4% 8% 4% 9% 21% 21% 18% 37% 12% 48% 23% 27% 35% 37% 96% Retail Office Hotel & Residential Marine & Industrial Bulk Developed Undevel
Slide 88: Portfolio Overview V&A Waterfront (50%)
ANNEXURE 38: PORTFOLIO OVERVIEW V&A WATERFRONT (50%) NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE R657m R594m R402m(1) R9 570m R9 447m R8 801m 4.5% 4.4% 8.8% 7.7% 8.5% 4.3% 8.1% 8.7% 11.6% 11.7% 21.9% 11.8% 22.1% 24.7% 25.8% 23.6% 8.0% 26.9% 27.6% 17.9% 37.3% 51.5% 49.6% 45.7% 48.3% 42.2% 36.8% FY19
Slide 89: Developments & Commitments V&A Waterfront
ANNEXURE 39: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%) APPROVED COST (100%) ESTIMATED FY21 SECTOR Rm COMPLETION DATE Rm DEVELOPMENTS & CAPITAL EXPENDITURE(1) Site B “The Ridge”: Deloitte Office 409.0 October 2020 89.0 Cruise Terminal including Food Emporium Various 110.2 November 2020 34.0 Cin
Slide 90: Distributable Income Analysis V&A Waterfront
ANNEXURE 40: DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%) FY21 FY20 INCREASE/ Rm Rm (DECREASE) Gross property revenue 661 920 (28.2%) Property related 653 863 Radisson Red Hotel 8 57 Property expenses (259) (326) (20.6%) Property related (250) (294) Radisson Red Hotel (9) (32) Net property inc
Slide 91: Net Property Income Analysis V&A Waterfront
ANNEXURE 41: NET PROPERTY INCOME ANALYSIS V&A WATERFRONT (50%) FY21 FY20 INCREASE/ Rm Rm (DECREASE) Gross property revenue 661 920 (28.2%) Property related 653 863 Radisson Red Hotel 8 57 Property expenses (259) (326) (20.6%) Property related (250) (294) Radisson Red Hotel (9) (32) Net property inco
Slide 92: V&A Waterfront Overview
ANNEXURE 42: V&A WATERFRONT OVERVIEW GLA(1) TOP 10 TENANTS (100%) m² Allan Gray (Pty) Ltd 20 905 Nedbank Group Ltd 25 433 The Foschini Group Ltd 3 632 Woolworths 10 527 PwC 9 650 Legacy Hotels 16 226 Department of Public Works 17 323 Sun International Hotels 17 100 The Surtee Group 1 606 Tourvest Ho
Slide 93: GLA & Vacancy Reconciliation V&A Waterfront
ANNEXURE 43: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%) TOTAL GLA VACANT AREA VACANCY m2 m2 % Balance as at 1 July 2020 227 415 3 313 1.5 GLA adjustments 445 276 Developments and extensions 4 671 (2 033) Leases expired in the period(1) 63 011 Renewals of expired leases(2) (53 897) New letting
Slide 94: Key Performance Indicators GOZ
ANNEXURE 44: KEY PERFORMANCE INDICATORS GOZ FY21 FY20 Vacancies (%)(1) 2.9 6.8 Total arrears (Rm) 5.7 20.5 Provision for bad debts (B/S) (Rm) 1.0 - Renewal success rate (%)(2) 77.1 84.9 Total letting success rate (%) 72.0 83.2 Weighted average renewal growth (%)(3) (7.3) (4.0) Weighted average futur
Slide 95: Portfolio Overview GOZ
ANNEXURE 45: PORTFOLIO OVERVIEW GOZ NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE NUMBER OF PROPERTIES R2 337m R2 537m R 2 664m R38 705m R51 845m R49 462m 57 58 55 AUD/ZAR AUD/ZAR 60000.00 14.0 3500.00 12.0 3000.00 11.98 12.0 11.5 50000.00 11.49 10.70 33.7% 9.89 31.8% 10.0 33.1% 2500.00 11.0 40000.00
Slide 96: Split of GOZ Property Portfolio
ANNEXURE 46: SPLIT OF GOZ PROPERTY PORTFOLIO VALUE (AUD) GLA VALUE GLA 2% 4% 8% 12% 33% 31% 8% 29% 14% 39% 67% 25% 14% 69% 26% 19% Victoria Queensland New South Wales South Australia Office Industrial Western Australia ACT 96
Slide 97: Disposals GOZ
ANNEXURE 47: DISPOSALS GOZ FY21 FY21 DISPOSALS SECTOR Rm A$m 120 Northcorp Boulevard, Broadmeadows, VIC Industrial 604.0 50.2 Quad 2, 6 Parkview Drive, Sydney Olympic Park, NSW Office 338.5 33.1 Quad 3, 102 Bennelong Parkway, Sydney Olympic Park, NSW Office 338.5 33.1 Total 1 281.0 116.4 97
Slide 98: Developments & Commitments GOZ
ANNEXURE 48: DEVELOPMENTS & COMMITMENTS GOZ ESTIMATED FY21 FY21 DEVELOPMENT & CAPITAL EXPENDITURE SECTOR COMPLETION DATE Rm A$m 75 Dorcas Street, South Melbourne, VIC Office Ongoing 71.0 6.2 1 Charles Street, Parramatta, NSW Office Ongoing 41.2 3.6 333 Ann Street, Brisbane, QLD Office FY21 16.0 1.4
Slide 99: Net Property Income Analysis GOZ
ANNEXURE 49: NET PROPERTY INCOME ANALYSIS GOZ FY21 FY20 INCREASE / A$m A$m (DECREASE) Gross property revenue 285.6 293.4 (2.7%) Property expenses (50.0) (51.3) (2.5%) Net property income 235.6 242.1 (2.7%) Adjustments (7.6) (14.2) Acquisitions (2.8) (1.9) Disposals (2.1) (12.8) Developments (2.7) 0.
Slide 100: GOZ Overview
ANNEXURE 50: GOZ OVERVIEW FAIR VALUE GLA GLA(2) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² 1 Charles Street, Parramatta, NSW Office 5 620 32 356 Woolworths 248 169 100 Skyring Terrace, Newstead, QLD Office 2 756 24 665 NSW Police Force 32 356 75 Dorcas Street, South Melbourne, VIC Office 2 6
Slide 101: GLA & Vacancy Reconciliation GOZ
ANNEXURE 51: GLA & VACANCY RECONCILIATION GOZ TOTAL GLA VACANCY(1) m2 % Balance as at 1 July 2020 1 042 930 6.8 GLA adjustments 191 Disposals (10 093) Balance as at 30 June 2021 1 033 028 2.9 1. Vacancy ratio is based on income and not GLA (when compared to RSA). 101
Slide 102: Key Performance Indicators C&R
ANNEXURE 52: KEY PERFORMANCE INDICATORS C&R FY21 FY20 Vacancies (%) 10.3 5.0 Total arrears (Rm) 471.9 300.0 Provision for bad debts (B/S) (Rm) 164.0 13.0 Net property income (Rm) 605.0 380.0 Number of properties 7 7 Portfolio value (Rm) 10 532 14 764 Number of employees 72 100 Net property income pe
Slide 103: Split of C&R Property Portfolio
ANNEXURE 53: SPLIT OF C&R PROPERTY PORTFOLIO VALUE GLA 3% 10% 8% 17% 9% 31% 20% 8% 11% 13% 24% 17% 21% 8% Wood Green Walthamstow Luton Ilford Maidstone Blackburn Hemel 103
Slide 104: Developments & Commitments C&R
ANNEXURE 54: DEVELOPMENTS & COMMITMENTS C&R ESTIMATED FY21 FY21 DEVELOPMENTS & CAPEX SECTOR COMPLETION DATE Rm £m Luton Retail June 2021 45.9 2.3 Walthamstow Retail June 2021 19.7 1.0 Ilford Retail June 2021 5.6 0.3 Hemel Retail June 2021 4.1 0.2 Wood Green Retail June 2021 3.0 0.1 Maidstone Retail
Slide 105: Net Property Income Analysis C&R
ANNEXURE 55: NET PROPERTY INCOME ANALYSIS C&R FY21 FY20 INCREASE/ £m £m (DECREASE) Gross property revenue 59.6 34.5 72.8% Property expenses (30.4) (16.1) 88.8% Net property income 29.2 18.4 58.7% Adjustments - - Adjusted “like-for-like” net property income 29.2 18.4 58.7% The Mall, Maidstone 105 105
Slide 106: C&R Overview
ANNEXURE 56: C&R OVERVIEW FAIR VALUE GLA GLA(1) PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Wood Green Retail 2 918 58 802 A.S. Watson (Health & Beauty) Ltd 4 589 Walthamstow Retail 2 055 26 630 Alliance Boots Ltd 15 955 Luton Retail 2 007 83 741 Primark Stores Ltd 13 372 Ilford Retail 1 078 29 298
Slide 107: Thank you
Thank you Mill Road Industrial Park, Bellville, Cape Town
Growthpoint Properties — FY2021 Earnings Presentation on 6ix