Delta Property Fund Limited · JSE:DLT
Delta Property Fund — FY2026 Earnings Presentation
34 slides from Delta Property Fund's earnings presentation, June 2026
Slide 1: Results Presentation for the Year Ended 28 February 2026
DELTA PROPERTY FUND LIMITED CREATING SUSTAINABLE RESULTS VALUE PRESENTATION FOR THE 20 YEAR ENDED 28 FEBRUARY 26
Slide 2: Agenda
01 Introduction 02 Operational Overview 03 Agenda The Turn-Around Strategy 04 Financial Results 05 Conclusion & Way Forward 06 Questions & Answers 2
Slide 3: Introduction
INTRODUCTION Net Profit Loan-to-Value Interest Debt Weighted Average Vacancy Rental SA REIT Net Asset /(Loss) Ratio Cover Ratio Refinancing Lease Expiry Rate* Collection Rate Value Per Share 221.9% 2.8% 0.1 times R3bn 1.8 months 4.6% 4.7% 1.2% R127.0m 56.7% 1.5 times 12.9 months 27.3% 99.8% R3.57 FY
Slide 4: A Transformative Year for Our Business
A TRANSFORMATIVE FY2026 marks a turning point — delivering strong financial, operational and strategic progress that positions Delta for sustainable long-term value creation. YEAR FOR OUR BUSINESS 01 02 03 04 05 Disciplined execution and Exited our listed Valuation gains Net profit for the Increased
Slide 5: Stabilisation to Sustainability
STABILISATION TO FY2026 marked a year of meaningful operational, financial and strategic progress across the Group. SUSTAINABILITY 01 EARNINGS & • Profit increased by 222% year-on-year • Return to profitability and positive valuation movement • Strong operational cash generation and 99.8% collection
Slide 6: Operational Overview
OPERATIONAL OVERVIEW 6
Slide 7: Operating Environment
OPERATING ENVIRONMENT Improving but still challenging MARKET CONDITIONS Interest Rates Economic Growth Leasing Pressures Cost Pressures Stabilising Recovering Moderating Persist Disciplined execution remains critical
Slide 8: Performance Overview
PERFORMANCE OVERVIEW Our strategic execution is translating into financial improvement PROFIT: COLLECTION: DEBT: LEVERAGE: COVERAGE: ASSET SALES: Increased significantly by Improved to 99.8%, driven Reduced by R291.3 million, LTV improved to 56.7% (from ICR improved to 1.5x (from R1.0 billion in dis
Slide 9: Operational Performance: Core vs Non-Core
OPERATIONAL PERFORMANCE: CORE VS NON-CORE Tight cost control and asset rationalisation are stabilising operations. 72 R1.2bn Properties Rental Income 48 (Core) R1.0bn (Core) 24 (Non-Core) R145.3m (Non-Core) 718 328m² R677.8m GLA Net Operating Income Excl. straight-line 534 703m² (Core) R641.2m (Core
Slide 10: Leasing Activity - Renewals
LEASING ACTIVITY - RENEWALS 80 139 666m 2 Leases Renewed GLA Split Renewed 65 (Core) 81 865m2 (DPWI) 15 (Non-Core) 57 801m2 (Other) 6.1% 1.3 Years Average Escalation Renewed Wale 1.3 Years (Core) 5.9% (Core) 1.6 Years (Non-Core) 7.1% (Non-Core) 0.3% Major Tenants Reversion Rate DPWI SARS 0.4% Positi
Slide 11: Leasing Activity - New Leases
LEASING ACTIVITY - NEW LEASES 44 20 881m 2 Leases Signed GLA Signed 34 (Core) 8 836m2 (Core) 10 (Non-Core) 12 045m2 (Non-Core) R11.5m 20 881m 2 Signed Annual Rent GLA Split Signed R10.3m (Core) 1 486 (DPWI) R1.2m (Non-Core) 19 395m2 (Other) 7% Major Tenants Average Escalation DPWI 7% (Core) Brooklyn
Slide 12: Asset Rationalisation
ASSET RATIONALISATION Disciplined disposals continue to improve portfolio quality, reduce income drag and recycle capital into our core strategy. 16 Properties disposed / R318m Property disposal 71% Average vacancy of 112 100m² Non-core GLA exited R18.7m Grit disposal pending transfer proceeds dispo
Slide 13: Turn-Around Strategy
TURN-AROUND ~ STRATEGY <\
Slide 14: Our Strategic Pillars
OUR STRATEGIC PILLARS Transforming Delta into a resilient, sovereign-anchored REIT Portfolio & Capital Leasing & Business Operational Optimisation: Development: Efficiency: • Focus on core tenanted assets • Enhance occupancy and drive lease renewals • Tighten cost controls and improve recoveries • E
Slide 15: Our Strategic Pillars
OUR STRATEGIC PILLARS Transforming Delta into a resilient, sovereign-anchored REIT PEOPLE CENTRED REBUILDING TRUST Build a performance- Ensure employees are Pursue risk-adjusted, Uphold transparency, driven, accountable skilled, empowered, and accretive opportunities integrity, and ethical workforce
Slide 16: Our Key Strategy - Outcomes
OUR KEY STRATEGY - OUTCOMES Delta Achieved Solid Progress in Strengthening its Balance Sheet and Operations: Asset Sales: Energy Resilience: • Disposed of R336 million in • Installed water and generator backups to non-core assets ensure operational continuity and reliability • Reduced LTV to 56.7% f
Slide 17: Delta's Strategic Evolution
DELTA’S DELTA BEFORE DELTA NOW FUTURE DELTA STRATEGIC Leadership and governance challenges Leadership stability and strategic execution Sustainable covenant compliance EVOLUTION Elevated vacancies and weak office fundamentals Governance framework strengthened Extended debt maturity profile From stab
Slide 18: Delta Transformation Journey
DELTA TRANSFORMATION JOURNEY DELTA TODAY DELTA TOMORROW COST LEASING DISPOSAL PEOPLE R6.3bn R3.6bn R5.3bn R2.5bn OPTIMISATION Asset Portfolio Value Debt Asset Portfolio Value Debt 1.5x 56.7% 2.0x 50% ICR LTV ICR LTV 72 48 Assets Assets 18
Slide 19: ESG Highlights
ESG HIGHLIGHTS Three ESG specific policies have been adopted - Impact materiality assessment is completed to inform prioritisation in relation to ESG Environmental Corporate Social Sustainable Supply Policy Responsibility Chain Policy Policy Commitment to: • Environmental efficiency • Energy managem
Slide 20: Financial Results
FINANCIAL” | RESULTS . Ss.
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS SA REIT LTV Weighted Average Cost of Debt 58.2% 10.3% Feb 2025 61.1% Feb 2025 11.2% Covenant LTV Rental Collection 56.7% 99.8% Feb 2025 59.5% Feb 2025 95.1% ICR FFO (cents) 1.5 times 17.3 cents Feb 2025 1.4 times Feb 2025 15.1 cents Renewal of NAV per share (Rand) debt facilitie
Slide 22: Consolidated Statement of Comprehensive Income
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Figures in R’000 FY2026 FY2025 Total Revenue 1 147 913 1 143 421 Property Operating Expenses (472 972) (422 014) Net Operating Income 674 941 721 407 Other Income 18 682 19 455 Gain/(loss) on foreign exchange movements (969) (2 910) Administration expen
Slide 23: Consolidated Statement of Financial Position
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Figures in R’000 FY2026 FY2025 ASSETS Non-current assets 5 695 403 5 416 072 Investment property 5 689 578 5 380 209 Investment in listed securities - 34 422 Property, plant and equipment 5 825 1 441 Current assets 169 929 161 590 Non-current assets held-
Slide 24: Strengthening the Balance Sheet
STRENGTHENING THE BALANCE SHEET Disciplined deleveraging and proactive covenant management continue to support financial stability. TOTAL INTEREST-BEARING DEBT (Rbn) COVENANT LTV VS COVENANT THRESHOLD Continued deleveraging reduces balance sheet risk. LTV improving towards the 50% covenant threshold
Slide 25: Source of Debt Funding
SOURCE OF DEBT FUNDING Refinancing diversification remains a priority STATE BANK OF INDIA: 3% The relationship with funders remains BANK OF CHINA: 1% positive INVESTEC: 14% The renewals have constantly been successful Bank of China To be fully settled by December 2026 STANDARD BANK: 16% NEDBANK: 66%
Slide 26: Debt Maturity Profile
DEBT MATURITY PROFILE 1-Month maturity R2.4bn with Nedbank renewed to April Near-term refinancing is critical focus area 2027. 3-Months maturity 66% 2 372 597 R555m with Standard Bank renewed to November 2028. 10-Months maturity R51m with Bank of China to be fully settled by 31 December 2026 via mon
Slide 27: FY26 Reduction of Debt
FY26 REDUCTION OF DEBT Notable progression in the capital structure optimisation through debt reduction 4 500 000 Debt (R’000) 4 000 000 15 817 3 857 711 15 000 -1 449 -103 082 3 595 776 3 500 000 -188 221 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 0 FY25 LOAN ADVANCES FEES CAPITALISE
Slide 28: Managing Liquidity Through Operational Discipline
MANAGING LIQUIDITY THROUGH OPERATIONAL DISCIPLINE Strong collection performance and proactive liquidity management continue to support operational stability. COLLECTIONS PERFORMANCE Collection rate remains strong and consistent. 120 112,7% 101,0% 103,1% 99,8% 100 95,1% Collection rate (%) 80 99.8% R
Slide 29: Sources & Uses of Cash
SOURCES & USES OF CASH Strong operational cash generation supporting funding requirements and strategic priorities. SOURCES OF CASH USES OF CASH Operating costs R684.9m Rental collections R1.27bn R1.3bn Finance costs R408.0m Revolving credit facility R15.0m Taxation R31.8m Disposal proceeds R13.0m T
Slide 30: Net Asset Value (NAV) Bridge
NET ASSET VALUE (NAV) BRIDGE (R’000) Creating future sustainable value 3 500 000 INCREASE DECREASE TOTAL 674 941 18 682 5 054 3 000 000 -969 -27 368 -41 594 -93 905 2 543 780 2 500 000 2 426 773 -407 834 2 000 000 1 500 000 1 000 000 500 000 0 NAV FY25 NET OPERATING OTHER INCOME FAIR VALUE OTHER P&L
Slide 31: SA REIT Funds From Operations
SA REIT FUNDS FROM OPERATIONS (R’000) Sustaining Investor Returns Figures in R’000 FY2026 FY2025 Profit/(loss) per IFRS Statement of Comprehensive Income attributable to parent A 127 007 (104 211) Accounting specific adjustments: B (18 574) 217 794 Adjustment arising from investing activities C 23 1
Slide 32: Conclusion & Way Forward
CONCLUSION & WAY FORWARD 32
Slide 33: Conclusion & Way Forward
CONCLUSION & WAY FORWARD • Finalise asset sales - fund debt reduction • Capital structrure to support next phase of Delta’s recovery • Continue cost containment and collection measures • Restore covenant compliance and resume distributions 33
Slide 34: Questions & Answers
QUESTIONS ANSWERS e/a , oO < A K | &