Hyprop Investments Limited · JSE:HYP

Hyprop Investments — H1 FY2015 Earnings Presentation

22 slides from Hyprop Investments's earnings presentation, 2015

  1. Slide 1: Interim Results 31 December 2014 - Agenda

    Interim Results 31 December 2014 Agenda STRATEGIC & OPERATIONAL OVERVIEW Pieter Prinsloo FINANCIAL RESULTS Laurence Cohen PROSPECTS Pieter Prinsloo QUESTIONS & ANSWERS Panel 2 1

  2. Slide 2: Financial highlights

    STRATEGIC & OPERATIONAL OVERVIEW Rosebank Mall, Johannesburg, Gauteng 3 Financial highlights 31 Dec 2014 31 Dec 2013 Change Distribution 262,7 cps 231 cps 13,7% Total return 25,9% 31 Dec 2014 30 June 2014 NAV (per share) R81,49 R76,02 7,2% Total property assets R27,1bn R26,4bn 2,7% Loan-to-value 25,

  3. Slide 3: Sustainable distribution growth; Portfolio management

    Sustainable distribution growth Cents per share 600 11,3% 500 6,0% 472 9,9% 424 400 400 13,1% 13,7% 7,5% 9,5% 300 10,4% 9,4% 4,5% 262,7 231 241 202 198 211 213 200 100 0 2012 2013 2014 2015 1st Half 2nd Half Total % growth 5 Portfolio management Developments completed  Rosebank Mall completed 30 Se

  4. Slide 4: Energy initiatives; Connecting with consumers

    Energy initiatives FY2015  500 kWp solar plant at Clearwater Mall Installation of additional  Installation of smart metering on track generators to ensure uninterrupted trading  Included in the JSE SRI Index  8 106 489 kWhs (over 28 months)  Total electricity consumption down 3,47% year-on-year

  5. Slide 5: Company structure; Investment profile

    Company structure Hyprop Investments Limited South Africa Sub-Saharan Africa (excluding South Africa) 100% owned Co-owned Held-for-sale/sold 100% CapeGate Canal Walk Willowbridge Hyprop Investments Mauritius Clearwater Mall (80%) Offices:  Glenfield Somerset Mall The Glen  Glenwood 37,5% 50% Woodl

  6. Slide 6: Operating performance

    OPERATING PERFORMANCE Woodlands Boulevard, Pretoria, Gauteng 11 Operating performance Income from property portfolio exceeded budget Rosebank Mall fully operational from October 2014 Occupancy rate higher at 98,2% (June 2014: 97,6%) Property cost-to-income ratio lower at 32,0% (June 2014: 34,4%) Arr

  7. Slide 7: Trading overview; Vacancies remain low

    Trading overview 12% Trading density growth 10% Rent ratio (rental as % of turnover) Vacancies 7,8% 8% 7,0% 6,8% 6,9% 7,0% 6,9% 6,7% 6% 5,5% 4% 3,4% 2,7% 2,4% 1,8% 2% 0% Jun 2012 Jun 2013 Jun 2014 Dec 2014 13 Vacancies remain low 31 Dec 2014 30 Jun 2014 31 Dec 2013 Retail 1,4% 1,2% 1,2% Offices 6,6%

  8. Slide 8: Leasing terms; Leasing activity

    Leasing terms 12% Rental growth Contractual escalation 10% 8,8% 8,3% 8,2% 8,1% 8% 7,4% 6,3% 5,8% 6% 4% 3,4% 2% 0% 2012 2013 2014 2015 15 Leasing activity Strong demand persists % of Rental Contractual No. of Leasing portfolio Area (m²) growth escalation leases Retail 11,8% 92 388 5,7% 8,1% 289 Offic

  9. Slide 9: Developments; Hyde Park

    Developments Focus on continuous improvements / refurbishments Refurbishment projects completed – R54,8 million Hyde Park, Canal Walk, Willowbridge and CapeGate Woolworths extensions commenced – R112 million at yield of 8,3% Canal Walk and Somerset Mall Further projects planned subject to tenant com

  10. Slide 10: Restructure Atterbury Africa & African Land

    INVESTMENT IN SUB-SAHARAN AFRICA (excluding South Africa) Manda Hill, Lusaka, Zambia 19 Restructure Atterbury Africa & African Land Pre-merger Post-merger  Restructure effective 1 July 2014  Dedicated AttAfrica management team in place  Future pipeline in key markets 20 10

  11. Slide 11: Income producing properties; Developments

    Income producing properties Hyprop's effective Distributable Rentable share- Investment earnings* area (m2) holding (%) (R'000) (R'000) Accra Mall (Accra, Ghana) 19 000 17,6 217 021 3 587 West Hills Mall (Accra, Ghana) 27 500 16,8 483 444 1 578 Manda Hill (Lusaka, Zambia) 44 000 68,8 953 671 16 075

  12. Slide 12: Highlights: Distributable earnings

    FINANCIAL RESULTS The Glen, Johannesburg South, Gauteng 23 Highlights Distributable earnings R’000 750 000 14 727 700 000 38 792 39 560 (37 267) 650 000 (27 193) (5 351) 53 479 638 633 600 000 550 000 561 886 500 000 31 Dec Existing Somerset Rosebank Sub-Saharan Sycom Net Other 31 Dec 2013 portfolio

  13. Slide 13: Net income; Income statement extracts

    Net income Drivers of growth Rm 1 200 000 31 Dec 2013 31 Dec 2014 12,2% 14,0% 1 000 000 7,2% 888 775 867 800 7,7% 798 854 773 238 779 486 800 000 720 170 745 115 668 724 * ** 600 000 400 000 200 000 0 Investment property Add Somerset Add Rosebank Add sub-Saharan Africa income (excl. SA) * Excludes S

  14. Slide 14: Balance sheet; Property valuations

    Balance sheet 31 Dec 2014 30 Jun 2014 (Rm) (Rm) % Change Investment property 23 341 24 081 (3,1%) Investment in sub-Saharan Africa 2 031 812 150,1% (excluding South Africa) Held-for-sale 1 737 1 705 Other assets 278 267 Total assets 27 387 26 865 1,9% Gross debt 7 061 7 199 (1,9%) Net asset value pe

  15. Slide 15: Debt management; Sources of funding

    Debt management Borrowings 31 Dec 2014 30 June 2014 Net borrowings R6,9 bn R7,1 bn Loan-to-value 25,4% 26,6% Debt at fixed rates 88% 71% Average fixed rate/swap maturity 5,1 years 4,2 years Debt Capital Market (DCM) % of total debt 35% 32% Cost of funding 7,3% 7,5% 29 Sources of funding US Dollar de

  16. Slide 16: Prospects

    PROSPECTS Hyde Park, Johannesburg, Gauteng 31 Prospects Risks  Electricity supply constraints  Certain tenants under pressure  Too much competition in the middle income market  Weak currencies in Africa Optimistic outlook  Lower inflation  No immediate interest rate increases Focus  Extension

  17. Slide 17: Questions & Answers; Appendices

    QUESTIONS & ANSWERS Canal Walk, Cape Town, Western Cape 33 APPENDICES Woodlands Boulevard, Pretoria, Gauteng 34 17

  18. Slide 18: Top 8 properties by value

    Top 8 properties by value Canal Walk Clearwater Mall Somerset Mall Woodlands Boulevard (80% undivided share) Region Cape Town Region Johannesburg Region Cape Town Region Pretoria Valuation (Rm) 6 208 Valuation (Rm) 3 641 Valuation (Rm) 2 263 Valuation (Rm) 2 239 Rentable area Rentable area Rentable

  19. Slide 19: Continued growth in trading density; Rentals remain affordable

    Continued growth in trading density Deterioration Per month (R/m²) Improvement 4 500 15% 4 000 4 062 Average portfolio growth: +5,5% (2013: +7,4%) 3 500 7% 6% 1% 3 280 8% 3 000 3 099 2 961 7% 2 914 7% 6% 2 500 2 689 1% 2 475 2 408 2 369 10% 2 000 15% 1 972 1 778 10% 1 500 1 457 1 000 500 0 Hyde Park

  20. Slide 20: Retail rental dominates revenue; Debt maturity profile

    Retail rental dominates revenue Revenue spread 6 months to December 2014 December 2014 December 2013 1% 3% 3% 2% Retail rental 3%1% 5% Municipal cost recovery 5% 7% 7% Operating cost recovery Customer parking 22% 60% 22% 59% Office rental Turnover rental Storerooms & other 39 Debt maturity profile B

  21. Slide 21: Maturity profile; Credible track record

    Maturity profile Fixed rate debt Rm Average maturity 5,1 years 2 000 1 863 1 800 1 600 1 400 1 250 1 200 1 000 1 000 765 750 800 600 400 400 200 200 - - June 15 June 16 June 17 June 18 June 19 June 20 June 21 June 22 41 Credible track record Rbn LTV % 32 60% Investment property 28 26,4 27,1 Market c

  22. Slide 22: Disclaimer: Forward-looking statements

    Disclaimer Forward-looking statements  This document contains forward-looking statements that, unless otherwise indicated, reflect the group’s expectations as at 31 December 2014.  Actual results may differ materially from the group’s expectations if known and unknown risks or uncertainties affect

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