Redefine Properties Limited · JSE:RDF
Redefine Properties — Non-Deal Roadshow (February 2022)
28 slides from Redefine Properties's roadshow presentation, February 2022
Slide 1: Redefine pre-close investor roadshow
1 Strategic overview Property asset platform Financial insights Redefine pre-close investor roadshow for the half-year ending 28 February 2022
Slide 2: Strategic overview
1 3 Strategic overview Strategic overview Property asset platform Harnessing the power of Redefine to deliver our purpose to create Financial insights a more inclusive, equitable and sustainable world Redefine pre-close investor roadshow for the half-year ending 28 February 2022 3
Slide 3: Our operating context
Our operating context A mutating virus, rising global inflation, and higher interest rate expectations set a volatile scene 4 Strategic overview 2022 is off to a slower start than initially anticipated, as The fundamentals of commercial property are largely a fresh lockdowns in many countries and da
Slide 4: What keeps us awake at night
What keeps us awake at night Elevated risks on our radar 5 High 1 9 3 Flags 14 2 Strategic overview Office sector vacancies rising 11 4 2022 risks on the rise Depressed SA economic outlook 8 Alignment to changing market needs Effect on business strategy Interest rate hikes Transform or recycle unp
Slide 5: Our strategy is executed through five strategic priorities
Our strategy is executed through five strategic priorities To deliver on our purpose and create value for all our stakeholders 6 2022 key focus areas Anticipated outcomes Strategic overview Focus on the diversity of our operations Inclusive corporate culture Introduce climate resilience framew
Slide 6: The Redefine of tomorrow
We responded to the challenges posed by COVID-19 to reset all aspects of what we do Creating a future-fit business to be more inclusive, sustainable and resilient 7 Strategic overview “We’re people” is core to the strategy and the strategy builds on this differentiator Stakeholder-centric by taking
Slide 7: Environmental, social and governance
Environmental, social and governance Managing our ESG risks is essential for the sustainability of our business 8 Environmental Social Governance Strategic overview Climate change Gender equality Our ability to accommodate caregivers will Internal Older buildings may be more costly to 9 11 12 13 3
Slide 8: Creating depth within the senior leadership team
Creating depth within the senior leadership team Harnessing the power of inclusion and diversity of thought 9 Strategic overview Property asset platform Financial insights Redefine pre-close investor roadshow for the half-year ending 28 February 2022
Slide 9: Restoring EPP into an income-yielding investment proposition
Restoring EPP into an income-yielding investment proposition Ticking a number of strategic imperatives 10 Gaining direct exposure to prime Polish retail assets Strategic overview Securing full control of management and cash flow decisions Benefiting from organic growth generated by EPP’s prime
Slide 10: Harnessing the collective power of Redefine
Harnessing the collective power of Redefine We will remain focused on what matters most by 11 Strategic overview Creating a platform for ecosystems of talent, technology and information Continuously improving, expanding and protecting our domestic portfolio Recycling capital through the dispos
Slide 11: Property asset platform
2 12 Strategic overview Property asset platform Property asset platform Creating smart and sustainable spaces Financial insights Redefine pre-close investor roadshow for the half-year ending 28 February 2022 12
Slide 12: Local sectoral trends
Local sectoral trends Operating environment remains challenging with encouraging signs of recovery 13 Retail Office Industrial Strategic overview Festive season footfall at 88% vs 2019 (pre-COVID). The need for innovation and collaboration as well as Increased opportunities to leverage existing Larg
Slide 13: Local retail portfolio
Local retail portfolio Positive sentiment on improved turnovers 14 Overview Strategic overview Total vacancy at 6.3% Concluded new leases over 37 990m2 during the period and vacated 35 750m2 throughout Rent reversion on renewals to January was -4.6% on 90 128m2 (7.3% of portfolio by GLA and 8.
Slide 14: Local office portfolio
Local office portfolio Sustainability interventions and remaining relevant will dictate performance 15 Overview Strategic overview Total vacancy at 16.6% Concluded new leases over 68 826m² during the period and vacated 58 450m² Rent reversion on renewals to January was -18.6% on 101 194m² (84.
Slide 15: Local industrial portfolio
Local industrial portfolio Remains defensive but very competitive in a cost-sensitive market 16 Overview Strategic overview Total vacancy at 3.5% Concluded new leases over 93 928m2 during the period and vacated 30 882m2 Rent reversion on renewals to January was -13.2% on 105 611m2 (6.0% of por
Slide 16: Offshore asset platform
Offshore asset platform Geographic diversification in an economically stable and hard currency market 17 Priorities Strategic overview Australia Journal Sale of Central was settled on 31 January 2022 and net proceeds of R980 million (AUD87 million) were received Termination of EPP’s listing on t
Slide 17: European Logistics Investments
European Logistics Investments Our exposure to Polish logistics benefiting from robust investor and tenant demand 18 Overview Strategic overview High inflation resulted in increased development costs, particularly for steel and labour Consequently, rentals are expected to increase, boding well f
Slide 18: EPP
EPP Polish retail is expected to experience the fastest return to pre-pandemic levels 19 Overview Strategic overview Due to the stability of the healthcare system and the Polish government’s focus on job preservation, no restrictions were imposed on the retail sector during the second half of 2021
Slide 19: Financial insights
3 20 Strategic overview Financial insights Property asset platform Stabilising the medium-term growth prospects Financial insights Redefine pre-close investor roadshow for the half-year ending 28 February 2022 20
Slide 20: Balance sheet management
Balance sheet management Stabilised platform positioned for growth 21 Strategic overview Shifting focus to sustainable growth of the simplified Bi-annual, independently performed property valuations property asset platform are in progress for half-year EPP restructure stabilises medium-term growth p
Slide 21: Debt maturity profile and available facilities
Debt maturity profile and available facilities Proactively managing liquidity 22 Debt maturity profile as at 31 January 2022 R1 865 million (as at 31 January 2022) of debt maturing over the next 12 months Strategic overview Rbn Debt expiries for the next 12 months will be managed in line with our
Slide 22: Loan-to-value ratio at acceptable level
Loan-to-value ratio at acceptable level Distribution of full-year 2021 earnings absorbed 23 Projected LTV Strategic overview 45% 41.6% 2.8% 42.2% 0.8% 2.0% 39.5% 40% 0.6% 0.9% -1.7% 0.0% -0.8% -3.0% -0.7% -0.4% 35% -2.0% -0.3% -0.2% -0.1% 30% Property asset platform HY2022** Forecasted LTV FY2021 ca
Slide 23: LTV sensitivity analysis
LTV sensitivity analysis Valuations, exchange rate fluctuations and timing of disposals influence the outcome 24 LTV FY2021 FY2022 Strategic overview impact Risks Risk level Risk level Liquidity LTV ICR Investment property valuation Rental relief during lockdown period and Medium Low X X rental defe
Slide 24: EPP corporate restructure
EPP corporate restructure Indicative financial impacts in second half of FY2022 25 Strategic overview The number of Redefine shares to be issued to EPP’s shareholders will be announced on 7 March 2022 Total assets and equity are expected to increase by c.R19.7 billion and R7.3 billion, respectiv
Slide 25: EPP's liquidity requirements
EPP’s liquidity requirements Addressing significant loan maturities with EUR879 million maturing by 31 December 2022 26 Strategic overview EUR'm Sources of liquidity Available cash 76 Towarowa 22 disposal 43 Sale of Power Park Opole 12 Proceeds from corporate restructure 188 Property asset platform
Slide 26: Trading outlook for 2022
Trading outlook for 2022 Asset platform positioned for sustainable growth 27 Economic recovery and business confidence continue to be Accelerating ESG funding opportunities broaden funding sources dampened by potential variant outbreaks and policy uncertainty Strategic overview Material reduction in
Slide 27: Closing: Creating a future-fit business
Closing Creating a future-fit business 28 Strategic overview How we Stakeholder- Purpose- Agile and Data- Innovative operate centric driven resilient driven and inclusive Property asset platform EXECUTION OF STRATEGIC PRIORITIES DELIVERING SUSTAINED VALUE CREATION FOR ALL STAKEHOLDERS Financial insi
Slide 28: Disclaimer
29 Disclaimer Strategic overview This presentation may include forward-looking statements which statements are not based on historical information, but rather premised on certain assumptions, risks, estimates and/or uncertainties (“risks and uncertainties”), which are taken into consideration as at
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