Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — H1 FY2022 Earnings Presentation
24 slides from Vukile Property Fund's earnings presentation, September 2021
Slide 1: FY22 H1 Pre-Close Presentation
FY22 H1 PRE-CLOSE PRESENTATION SEPTEMBER 2021
Slide 2: Southern African Portfolio
SOUTHERN AFRICAN PORTFOLIO FY22 H1 PRE-CLOSE PRESENTATION 2
Slide 3: Retail Portfolio Performance and Trading Environment
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT PORTFOLIO HOLDING STEADY IN TOUGH OPERATING ENVIRONMENT > Portfolio trading metrics back to pre-Covid levels AUG 2021 MAR 2021 AUG 2021 MAR 2021 > FY22 turnover average 4% higher than comparable period in FY20 > Trading density growth up to 4.3% v
Slide 4: Footfall and Sales
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT FOOTFALL AND SALES Benchmark 2019 > Encouraging to note that current sales are trending ahead of Benchmark 2019 / 2020 (Pre-Covid) pre-Covid levels (104%) Average 104% > Footfall trending below pre-Covid levels with notable 110% 109% 108% shopper
Slide 5: Segmental Footfall and Sales
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT SEGMENTAL FOOTFALL AND SALES Sales Footfall RURAL TOWNSHIP > Sales recovered well with rural centres to 110%, 125% 116% 113% 113% 111% 111% 110% 108% 106% 106% 106% 106% 105% 105% 104% 104% 103% 103% 103% 102% 102% 101% 100% 100% 100% 99% 99% 98%
Slide 6: Retail Category Performance
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT RETAIL CATEGORY PERFORMANCE Home Grocery/ Furnishings/ Art/ Supermarket Pharmacies Antiques/ Décor Density 12,7% Density 19,0% Density 9,8% Turnover 12,4% Turnover 20,1% Turnover 15,0% Sports Fashion Year-on-year turnover growth Utilities/Gyms/Out
Slide 7: Collections
RETAIL PORTFOLIO PERFORMANCE AND TRADING ENVIRONMENT COLLECTIONS R937M OF R955M COLLECTED 66% of 13% of 19% of 2% of billings billings billings billings National Mid-tier SMME's Government * tenants tenants 97% 71% 99% 97% Total portfolio 98% 35% of 16% of 49% of billings billings billings Fashion,
Slide 8: Covid-19 Rental Concessions
COVID -19 RENTAL CONCESSIONS R6.4M VS. R133M IN FY21 H1 R0,1m R0,0m R0,2m SMME's 16 tenants R0,4m R0,4m TOWNSHIP 6% R1,9m National R0,1m tenants R0,8m National tenants Mid-tier tenants 85 tenants 37 tenants R0,1m R0,0m R0,2m R2,4m R3,6m R0,3m 37% 57% R0,1m Mid-tier R0,6m COMMUTER tenants R0,3m R0,2m
Slide 9: Update on Civil Unrest: Properties Affected
UPDATE ON CIVIL UNREST 6 PROPERTIES AFFECTED BY UNREST Expected reinstatement costs Expected loss of rental SASRIA claim SASRIA claim R125m R57m Number of shops damaged GLA Impacted 473 139 000m² 43% national 14% mid-tier 43% SMME 73 000m² (55%) exposure to Top 10 tenants 20 000m² (15%) exposure to
Slide 10: Update on Civil Unrest: Reinstatement and Trade
UPDATE ON CIVIL UNREST REINSTATEMENT AND TRADE Expected Expected Number of Number of % of GLA completion cost to stores stores trading date repair trading 57 57 Perimete r fen ce, main en tran ce d oors an d National 24 National 24 16 Aug 21 R2.6m Mid-tier 11 100% sh op fron ts Mid-tier 11 SMME 22 S
Slide 11: Update on Civil Unrest: Pine Crest
UPDATE ON CIVIL UNREST Pine Crest 16 July 2021 Pine Crest 10 September2021 11
Slide 12: Update on Civil Unrest: Durban Workshop
UPDATE ON CIVIL UNREST Durban Workshop 17 July 2021 Durban Workshop 9 September 2021 12
Slide 13: Update on Civil Unrest: Hammarsdale
UPDATE ON CIVIL UNREST Hammarsdale 19 July 2021 Hammarsdale 9 September 2021 13
Slide 14: Disposals Update
DISPOSALS UPDATE Sales Expected Sector price Yield transfer [R’m] date Total 1 511.7 10.4% 357.5 9.9% Ulundi King Senzangakona Shopping Centre Retail 308.7 9.4% Transferred 19 August 2021 Transferred Kempton Park Spartan Warehouse Industrial 23.8 14.8% Transferred 12 April 2021 Pretoria Rosslyn Ware
Slide 15: FY22 H1 Pre-Close Presentation
FY22 H1 PRE-CLOSE PRESENTATION 15
Slide 16: Economic Update: Spain
ECONOMIC UPDATE: SPAIN > In Q2 2021, Spanish GDP increased by 2.8% vs. Q1 2021 and increased by 19.8% vs. Q2 2020. > The Spain GDP growth outlook for 2021 has recently been revised upwards from 5.5% to 6.5%. > This is mainly due to increased consumption attributed to faster than expected vaccination
Slide 17: Update on Covid-19 in Spain
UPDATE ON COVID-19 IN SPAIN SPAIN ACHIEVED THE TARGET OF VACCINATING AT LEAST 70% OF THE POPULATION BY THE END OF AUGUST 2021 VACCINATION PROGRAMME FOLLOWING THE WAVES Fully Vaccinated At least 1 shot State of Alarm 73% 78% declared Start of vaccination – hard national of population of population pr
Slide 18: Footfall & Sales
FOOTFALL & SALES 2020 2021 18 120,0% 1ST WAVE 2ND WAVE (3) 3RD WAVE (3) > Sales continue to strengthen and have 16 surpassed 100% of 2019 levels in June 100,0% 2021. Larger basket sizes and higher 14 conversion rates continue to drive sales 12 80,0% > Retail park sales are already above 10 2019 leve
Slide 19: Operating Activity
OPERATING ACTIVITY (2) OCCUPANCY RATE 97% CONTINUOUSLY CLOSING AGREEMENTS AND OPENING NEW STORES DURING THE PANDEMIC DUE TO THE STRENGH OF OUR TENANT KEY KPI´S YTD 31st August 2021 RELATIONSHIPS AND RETAIL EXPERTISE 86 €4.3m PORTFOLIO ALMOST FULLY LET 31 AUGUST LEASES SIGNED NEW RENT SIGNED 2021 97.
Slide 20: Trading Environment
TRADING ENVIROMENT > Sales & Footfall continue to improve with portfolio effort rates in line with industry benchmarks > Larger retailers like Inditex, JYSK, Primark, Kiwoko, Pepco, IKEA (with a 3,000sqm concept), Kiabi, Media Markt (500-700sqm “Smart” format), are currently expanding their portfoli
Slide 21: Retail Category Performance
RETAIL CATEGORY PERFORMANCE +2.5% OVERALL PORTFOLIO SALES GROWTH FOR THE PERIOD 1 AUGUST 2020 TO 31 JULY 2021 Turnover growth by retail category > 2021 sales are approaching 2019 120 000 000,00 40,0% 23,2% -6,3% 28,4% levels month by month. We have 19,9% 100 000 000,00 14,6% 20,0% been above 90% of
Slide 22: Finance and Treasury
FINANCE AND TREASURY FY22 H1 PRE-CLOSE PRESENTATION
Slide 23: Debt and Treasury Update
DEBT AND TREASURY UPDATE IMPROVED BALANCE SHEET METRICS RECOGNISED BY DEBT CAPITAL MARKETS AND CREDIT RATING AGENCY > Balance sheet metrics remain positive: > Group LTV and ICR ratios are expected to be largely in line with 31 March 2021 > c. R300 million of Vukile bank debt maturing in FY2022 is cu
Slide 24: Questions
QUESTIONS 24
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