Growthpoint Properties Limited · JSE:GRT
Growthpoint Properties — FY2020 Earnings Presentation
103 slides from Growthpoint Properties's earnings presentation, September 2020
Slide 1: Annual Results Presentation for the Year Ended 30 June 2020
ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2020
Slide 2: Agenda
32 on Kloof, Kloof Street, Cape Town AGENDA 1 Strategy in Action 6 Funds Management Update GHPH GIAP 2 Group Salient Features 7 Capital Management 3 Financial Results 8 Conclusion 4 International Investments GOZ 9 Annexures GWI C&R 5 South African Portfolio Update RSA V&A Waterfront 2
Slide 3: Strategy in Action
es . et = STRATEGY IN ACTION
Slide 4: Focus on liquidity and strengthening the balance sheet
Botanicca 3, Richmond, Melbourne 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 Internationalisation Focus on refining our approach to international investments Currently 40.8% o
Slide 5: Group Salient Features
GROUP SALIENT FEATURES
Slide 6: Group salient features
Warsaw Trade Tower, Warsaw 5.4% increase in revenue from FY19 to R12.0bn 14.8% decrease in distributable income from FY19 to R5.5bn 16.0% decrease in distributable income per share to 183.1 cps 18.7% increase in group property assets from FY19 to R166.7bn Group LTV 43.9% vs 36.7% at FY19 7.6% decrea
Slide 7: Financial Results
FINANCIAL RESULTS
Slide 8: Distributable Income & SA REIT FFO
DISTRIBUTABLE INCOME & SA REIT FFO FY20 FY19 Increase/ Rm Rm (Decrease) Revenue 12 008 11 388 5.4% RSA 7 965 8 312 (4.2%) GOZ 3 024 2 761 9.5% C&R 715 - 100.0% GHPH 263 240 9.6% Trading & Development(1) 41 75 (45.3%) Property expenses (3 234) (2 635) 22.7% RSA (2 360) (2 181) 8.2% GOZ (487) (424) 14
Slide 9: Distributable Income & SA REIT FFO cont.
DISTRIBUTABLE INCOME & SA REIT FFO cont. FY20 FY19 INCREASE/ Rm Rm (DECREASE) Net property income after operating expenses 8 160 8 286 (1.5%) Finance costs (3 106) (2 603) 19.3% RSA (2 338) (2 033) 15.0% GOZ (547) (570) (4.0%) C&R (221) - 100.0% Finance income and other investment income 1 314 1 352
Slide 10: Decrease in Distributable Income
The Silo, V&A Waterfront, Cape Town DECREASE IN DISTRIBUTABLE INCOME 0.00% -2.00% -4.00% -6.00% -12.54% -14.80% -8.00% -10.00% -12.00% -1.34% -14.00% -14.9% -0.87% 0.59% -0.71% 0.27% -0.24% 0.02% 0.03% -16.00% RSA V&A Trading & GOZ GIAP GHPH Funds C&R GWI Distributable Distributable Waterfront Devel
Slide 11: Consolidated Balance Sheet (Extracts)
CONSOLIDATED BALANCE SHEET (EXTRACTS) FY20-FY19 FY20 FY19 INCREASE/ Rm Rm (DECREASE) Property portfolio 140 013 117 009 19.7% RSA 73 404 78 304 (6.3%) GOZ(1) 51 845 38 705 33.9% C&R(1) 14 764 - 100.0% Equity investments 17 537 15 515 13.0% Investment in V&A Waterfront (50.0%) 7 163 7 583 (5.5%) Inve
Slide 12: International Investments: GOZ
INTERNATIONAL INVESTMENTS GOZ
Slide 13: GOZ: Our Investment, Strong Balance Sheet
Botanicca 3, Richmond, Melbourne Our Investment 62.2% investment in GOZ at a cost of R9.6bn vs. R18.4bn market value AUD dividend of 21.8 cents received for FY20 vs. 23.0 cents for FY19 Dividend withholding tax of 10.0% for FY20 vs. 7.2% for FY19 Remains a core investment market for us given
Slide 14: GOZ: Portfolio Update, Acquisitions, COVID-19 Impact
100 Skyring Terrace, Newstead, Queensland Portfolio Update Defensive and well positioned quality portfolio with strong tenancies Portfolio occupancy 93% (97% excluding Botanicca) 3.3% WARR Signed longest lease agreement to date, for GOZ, with NSW Police Force for 25 years, which contributed
Slide 15: International Investments: GWI
INTERNATIONAL INVESTMENTS GWI
Slide 16: GWI: Our Investment, Balance Sheet, Portfolio
Globalworth Campus, Bucharest Our Investment 29.4% investment in GWI at a cost of R8.4bn vs. R7.9bn market value € dividend 49 cents for FY20 vs. 57 cents for FY19 Strong Balance Sheet Raised €264.3m equity in October 2019 Issued inaugural green bond raising €400m with a 2.95% coupon for 6 y
Slide 17: GWI: Acquisitions, Developments, COVID-19 Impact
Retro Office House, Wroclaw, Warsaw Acquisitions up to December 2019 €239.2m acquisition of 3 standing properties and 2 properties under development In addition GWI acquired the remaining 50% in the Renault Bucharest Connected (RBC) in Romania in December 2019 at gross acquisition price of €73.0
Slide 18: International Investments: C&R
INTERNATIONAL INVESTMENTS C&R
Slide 19: C&R: Our Investment, Balance Sheet
The Mall Maidstone, United Kingdom Our Investment 52.1% investment in C&R at a cost of R2.9bn vs. R1.1bn market value Contrarian view on retail in the UK Market dislocation created the opportunity COVID-19 has had a severe impact on our investment case £ dividend of 11 pence for second hal
Slide 20: C&R: Portfolio Update, COVID-19 Impact
Blackburn Mall, United Kingdom Portfolio Update 7 needs-based retail assets Well positioned with its community centre strategy with a high proportion of non-discretionary retail 15.9% decline in portfolio value to £611.3m, from 31 December 2019 Commercial occupancy 95.0%, based on expected r
Slide 21: South African Portfolio Update: RSA
SOUTH AFRICAN PORTFOLIO UPDATE RSA
Slide 22: RSA Salient Features
RSA SALIENT FEATURES Over 1 million m² of space let in FY20 66.4% renewal success rate vs. 70.1% at FY19 Vacancies of 9.5% vs. 6.8% at FY19 39.8% LTV vs. 32.0% at FY19 and interest cover 3.4x 33.6% total expense ratio (incl. group overhead) -6.7% renewal growth rate vs. vs. 29.0% FY19 and 31.0% on a
Slide 23: Our Response to COVID-19
Greenfield Industrial Park, Cape Town OUR RESPONSE TO COVID-19 Tenants Proactive, collaborative, sector wide approach adopted with tenants Quick to respond with the formation of the Property Industry Group Very good for strengthening relationships Retail sector most severely impacted Staff
Slide 24: COVID-19 Financial Impact
Oxford Corner, Rosebank COVID-19 FINANCIAL IMPACT Rm Discounts granted 277 Deferments granted 141 Deferments 158 Deferments recovered (17) COVID-19 direct expenses 7 Total expenses and relief provided 425 Deferment back into income (141) 25% bad debts provision on deferments of R141m 35 Bad debts pr
Slide 25: COVID-19 Rental Discounts and Deferrals
Inanda Greens, Sandton COVID-19 Rental Discounts Net Rental Deferrals Trade & All Sectors Retail Office Industrial Healthcare All Sectors Retail Office Industrial Development Apr-20 R37,508,477 R210,632 R18,220,278 R19,077,567 R0 Apr-20 R36,462,017 R31,852,933 R3,677,542 R667,153 R264,390 May-20 R95
Slide 26: COVID-19 Arrears and Collections
The Towers, Sandton COVID-19 Arrears Collections % All Sectors All Sectors Retail Office Industrial Healthcare Apr-20 R378,222,654 Apr-20 73 47 92 82 100 May-20 R590,895,018 May-20 72 57 85 82 52 Jun-20 R510,967,503 Jun-20 84 81 88 80 83 Jul-20 R461,139,322 Jul-20 84 77 92 82 96 26
Slide 27: Retail: KPI
RETAIL: KPI FY20 FY19 Core vacancy, excluding offices and GLA under development is 3.7% TO Stubborn vacancies concentrated in non-core properties LET Vacancies 5.1% 3.9% Expect more business rescues and potential failures which will increase vacancies Very little demand for additional space
Slide 28: Retail: KPI cont.
RETAIL: KPI cont. FY20 FY19 The business rescue process has resulted in the sale of JET and Edgars and we have concluded TO LET negotiations with the purchasers, subject to Competition Commission approval Edcon Of the c. 88 680m² Edcon space, we have done deals on 79 723m² which is for 42 of the
Slide 29: Office: KPI
OFFICE: KPI FY20 FY19 Mainly as a result of the weaker renewal success rate, new partially let spec developments and tenants consolidating and giving back space which accounts for some 3% of the increase TO c. 20 000m² committed and pre-let after year end which would see vacancies decreasing to
Slide 30: Industrial: KPI
INDUSTRIAL: KPI FY20 FY19 New partially let developments added c. 34 000m² to the vacancy TO LET Vacancies 7.1% 6.2% With another 3 large vacancies of c. 28 000m² as a result of tenants vacating and one due to a liquidation Renewal success rate 69.4% 68.0% With a focus on retaining tenants, th
Slide 31: Trading & Development
Longkloof, Cape Town TRADING & DEVELOPMENT Third Party Development Fees R11m of third-party development fees for Woodburn Square, Bakers and PTA Head & Neck Hospital R30m of rental income from Woodburn Square, Bakers Transport Cato Ridge and Exxaro with R11m of property expenses Development Upda
Slide 32: South African Portfolio Update: V&A Waterfront
SOUTH AFRICAN PORTFOLIO UPDATE V&A WATERFRONT
Slide 33: V&A: Net Property Income Growth pre COVID-19
V&A Waterfront, Cape Town Net Property Income Growth of 6.5% pre COVID-19 The V&A performed very well until February 2020 Retail sales and sales densities growing in excess of 5% Footfall projected to be 26 million for the year dropped to 21 million at the end of June Hotel growth in occupan
Slide 34: V&A: Impact of COVID-19
V&A Waterfront, Cape Town Impact of COVID-19 Retail Retail sales for the year fell by 16% Rental relief has been prioritised according to strategic importance to the V&A and dependency on international tourism Relief provided to national retailers was in line with the Property Industry Group g
Slide 35: Funds Management Update
FUNDS MANAGEMENT UPDATE
Slide 36: Growthpoint Healthcare Property Holdings - GHPH
Gateway Private Hospital, Umhlanga Ridge, Durban Growthpoint Healthcare Property Holdings - GHPH Total of R973m capital raised from third parties with GRT’s shareholding diluted down to 61.8% R2.6bn property portfolio of 4 hospitals and 1 medical chambers Successful completion of the 52-bed ex
Slide 37: Growthpoint Investec African Properties - GIAP
Achimota Retail Centre, Ghana Growthpoint Investec African Properties - GIAP 16.6% shareholding in GIAP amounting to $50m or R750m Significant growth with full $212m of capital commitments drawn and with the addition of new investor capital NAV is $301m Quality portfolio of income-producing as
Slide 38: Capital Management
CAPITAL MANAGEMENT
Slide 39: RSA Capital Management
The Oval, Cape Town RSA CAPITAL MANAGEMENT Total nominal debt R43.4bn Liquidity: R3.1bn of unutilised committed facilities Post FY20, R750m revolving credit facility signed with Standard Chartered Bank R1.8bn of nominal debt balance increase is due to changes in ZAR balances of EUR, GBP and US
Slide 40: Conclusion
CONCLUSION
Slide 41: South Africa and V&A Waterfront outlook
Saligna, Wadeville SOUTH AFRICA Very difficult for SA to recover amidst a global recession Contraction of greater than 10% expected in SA GDP in 2020 Further downgrade likely due to the increasing debt burden Further reduction in liquidity making asset sales more difficult Sharp deteriorat
Slide 42: GOZ, GWI, C&R outlook
Spektrum Tower, Warsaw, Poland GOZ Strong property fundamentals for the portfolio, however the economy in recession Gearing below target range providing scope for accretive acquisitions Good liquidity position Uncertainty around the impact of COVID-19, but the tenant base is strong and diver
Slide 43: Conclusion & Dividend Guidance
Discovery Place, Sandton CONCLUSION & DIVIDEND GUIDANCE It remains too early to quantify the ongoing effects of the pandemic on all Growthpoint’s operations – as such no guidance has been provided at this time and no dividend has been declared for FY20 The Board is still considering the final di
Slide 44: Thank You
S09) VG THANK YOU
Slide 45: Annexures
ANNEXURES
Slide 46: Annexure Contents
ANNEXURE CONTENTS 01 Company highlights 09 Expense to income ratios (gross) 02 Growth in tangible assets and market capitalisation 10 RSA Diversified borrowings - nominal value 03 Growth in dividend per share (cents) 11 RSA Facilities 04 RSA Portfolio overview 12 Loan to value and interest cover rat
Slide 47: Annexure Contents
ANNEXURE CONTENTS Shares issued & beneficial shareholders 17 holding >2% at HY20 25 Developments & capital expenditure RSA 18 RSA billings & collections 26 Developments & capital expenditure RSA cont. 19 Key performance indicators RSA 27 Commitments RSA 20 Portfolio overview RSA (excl. V&A) 28 Non-c
Slide 48: Annexure Contents
ANNEXURE CONTENTS 33 GLA & vacancy reconciliation RSA 41 GLA & Vacancy reconciliation V&A Waterfront (50%) 34 Key performance indicators V&A Waterfront (50%) 42 Key performance indicators GOZ 35 Portfolio overview V&A Waterfront (50%) 43 Portfolio overview GOZ 36 Split of V&A Waterfront property por
Slide 49: Annexure Contents
ANNEXURE CONTENTS 49 Key performance indicators C&R 50 Split of C&R property portfolio 51 Commitments C&R 52 Net property income analysis C&R 53 C&R overview 49
Slide 50: 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 36th largest company in the FTSE/JSE Top 40 Index Increasing proportion of assets and EBIT from offsho
Slide 51: Growth in Tangible Assets and Market Capitalisation
ANNEXURE 02: GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION Rbn cents 3 3000 000 160 140 2 2500 500 R23.77 120 2 2000 000 100 1 1500 500 80 R13.35 60 1 1000 000 40 500 500 20 0 0 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share
Slide 52: Growth in DIPS
Wadestone Industrial Park, Germiston ANNEXURE 03: GROWTH IN DIPS (cents) 6.5% 6.5% 4.6% -16.0% 208.6 (1) 218.1(1) 195.8(1) 183.8(1) 112.3 107.4 100.8 94.3 (2) 89.5 95.0 101.2 105.8 106.0 FY16 FY17 FY18 FY19 FY20 Interim dividend Final dividend 1. DIPS = DPS (100%) payout ratio. 2. Final FY20 DPS sti
Slide 53: RSA Portfolio Overview
ANNEXURE 04: RSA PORTFOLIO OVERVIEW TRADE & RETAIL OFFICE INDUSTRIAL HEALTHCARE RSA TOTAL (3) DEVELOPMENT Number of properties 47Ç 168Ç 215Ç 5 5 440 Ç GLA (m²) 1 365 392 1 672 009 2 308 912 70 200 77 220 5 493 733 Vacancy (m²)(1) 69 167Ç 258 295Ç 162 836Ç 32 859 - 523 157Ç Vacancy (%)(1) 5.1 Ç 15.4Ç
Slide 54: Group Investments Portfolio Overview
ANNEXURE 05: GROUP INVESTMENTS PORTFOLIO OVERVIEW V&A (1)) GOZ (1) (3) C&R Number of properties 1Ç 58 7 GLA (m²) 227 415Ç 1 042 930 328 511 Vacancy (m²)(4) 3 313Ç 57 545Ç 18 065 Vacancy (%)(4) 1.5Ç 6.8 Ç 5.0 Valuation (Rm)(4) 9 447È 51 845Ç 14 764 Value per m² (excl. bulk)(4) R39 568È A$4 049Ç £1 86
Slide 55: 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 2019 29 845 31 696 13 682 2 626 455 78 304 38 705 - 117 009 9 567 Purchase price of acquisiti
Slide 56: Offshore Contribution
ANNEXURE 07: OFFSHORE CONTRIBUTION Book Value of Property Assets 40.8% EBIT 28.2% Offshore Offshore R121 346m R126 187m R140 017 R8 181m R8 797m R8 431m 7 692 5.5% 168 17 226 12.3% 19 598 2.0% 4 12 788 10.1% 0.2% 6.8% 103 11 564 9.5% 726 8.6% 1.3% 1 340 1 449 16.5% 16.5% 22 003 25 528 20.2% 32 248 2
Slide 57: Expense to Income Ratios (IFRS)
ANNEXURE 08: EXPENSE TO INCOME RATIOS (IFRS) SOUTH AFRICA V&A WATERFRONT GOZ 27.5% 29.0% 33.6% 32.5% 31.7% 38.4% 19.3% 20.5% 21.2% 3.0% 4.5% 3.6% 3.2% 3.4% 3.7% 5.1% 5.1% 35.4% 29.2% 5.1% 25.6% 28.9% 28.5% 23.8% 15.4% 16.1% 14.2% FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 Operating Expense Ratio P
Slide 58: Expense to Income Ratios (Gross)
ANNEXURE 09: EXPENSE TO INCOME RATIOS (GROSS)* SOUTH AFRICA V&A WATERFRONT GOZ 38.4% 41.2% 44.6% 38.4% 37.4% 43.7% 20.1% 21.4% 22.0% 3.8% 2.8% 3.4% 3.3% 3.3% 2.9% 40.8% 40.9% 37.8% 5.1% 5.0% 35.1% 35.1% 34.5% 5.0% 15.1% 16.3% 17.0% FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 Operating Expense Ratio
Slide 59: RSA Diversified Borrowings - Nominal Value
ANNEXURE 10: RSA DIVERSIFIED BORROWINGS - NOMINAL VALUE R35 152m R35 240m R43 373m 7 374 Debt capital 5 833 5 980 market 48.1% Unsecured Debt capital 13 498 56.5% market Debt capital 40.0% 8 233 Unsecured market Unsecured 54.3% 47.2% 57.1% 10 650 3 629 5 036 3 476 2 553 603 2 552 Traditional Traditi
Slide 60: RSA Facilities
ANNEXURE 11: RSA FACILITIES RSA facilities FY20 FY19 Unutilised committed facilities (Rbn) 3.1 5.5 Weighted average term of liabilities (years) 3.6 4.0 Weighted average term of fixed interest rate profile (Incl. AUD, GBP & EUR CCIRS and IRS) (years) 3.1 3.6 Weighted average interest rate (%) 8.2 9.2
Slide 61: Loan to Value and Interest Cover Ratios
ANNEXURE 12: LOAN TO VALUE AND INTEREST COVER RATIOS SOUTH AFRICA GOZ(2) C&R(3) GROUP 50% 7 50% 7 50% 8 50% 51.4% 8 7 43.9% 6 6 7 40% 40% 40% 39.8% 40% 6 36.7% 5 5 36.2% 6 35.4% 35.2% 5 35.2% 31.8% 30% 30% 31.2% 30% 5 4 30% 4 4 4 3 3 20% 20% 20% 20% 3 3 2 2 2 2 10% 10% 10% 10% 1 1 1 1 3.6x 3.8x 3.4x
Slide 62: Group Look Through LTV
ANNEXURE 13: 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, 29.4% GWI NAV) Total property-related assets R161 767 1 Total debt (net of cash) R71 037 LTV 43.9% LTV (100% RSA A&L, 62.2% GOZ NAV, 52.1% C&R NAV, 50% V&A NAV and 29.4% GWI NAV) Total propert
Slide 63: Loan Exposure per Financier RSA
ANNEXURE 14: LOAN EXPOSURE PER FINANCIER RSA Investec JSE (Corporate Bonds) 31% Liberty 2% 4% Old Mutual 5% Standard Bank 5% Absa 10% 17% Euronext (Eurobonds) 13% RMB 13% Nedbank 63
Slide 64: Debt Expiry Profile per Financier RSA
ANNEXURE 15: DEBT EXPIRY PROFILE PER FINANCIER RSA 6% 13% 32% 13% 15% 13% 4% 1% 3% 35% 30% 25% 20% 15% 10% 5% 0% FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Absa Investec JSE (Corporate Bonds) Euronext (Eurobonds) Liberty Nedbank Old Mutual RMB Standard Bank 64
Slide 65: Fixed Interest Rate Expiry Profile RSA
ANNEXURE 16: FIXED INTEREST RATE EXPIRY PROFILE RSA 19% 7% 13% 24% 13% 14% 3% 3% 2% 2% 30% 25% 20% 15% 10% 5% 0% Floating FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 65
Slide 66: Shares Issued & Beneficial Shareholders Holding >2%
ANNEXURE 17: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY20 SHARES % HOLDING SHARES HELD Opening balance 1 July 2019 2 970 981 288 Government Employees Pension Fund 13.8 416 482 368 Dividend reinvestment (October 2019) 51 515 094 Prudential Portfolio Managers 5.0 150 706 723 Sesfikile C
Slide 67: RSA Billings & Collections
Woodmead Country Club Estate, R901 703 242 Apr-20 R655 507 085 R788 056 493 All Sectors May-20 R570 281 728 R740 522 689 Jun-20 R622 579 443 All Sectors R907 641 749 Jul-20 R765 635 973 R356 694 181 Apr-20 R167 646 265 Retail R325 107 790 ANNEXURE 18: May-20 R185 311 440 R203 331 373 Jun-20 Retail R
Slide 68: Key Performance Indicators RSA
144 Oxford Road, Rosebank ANNEXURE 19: KEY PERFORMANCE INDICATORS RSA FY20 FY19 Vacancies (%) 9.5 6.8 Total arrears (Rm) 511.0 77.7 Provision for bad debts (B/S) (Rm) 254.0 36.8 Bad debts (I/S) (Rm) 236.5 18.9 Average in force escalations (%) 7.5 7.7 Renewal success rate (%) 66.4 70.1 Total letting
Slide 69: Portfolio Overview RSA (excl. V&A)
ANNEXURE 20: PORTFOLIO OVERVIEW RSA (EXCL.V&A) NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE R6 436m R6 416m R5 857m 454 450 440 R78 634m R78 304 R73 404 1.2% 1.1% 3.3% 1.1% 1.1% 0.9% 1.1% 17.0% 0.5% 3.8% 3.4% 0.9% 1.2% 17.7% 17.1% 3.6% 17.5% 19.0% 49.6% 18.1% 48.7% 48.9% 45.6% 3
Slide 70: Split of RSA Property Portfolio
ANNEXURE 21: SPLIT OF RSA PROPERTY PORTFOLIO VALUE GLA VALUE GLA 1% 1% 1% 3% 2% 2%1% 4% 4% 3% 5% 18% 8% 31% 11% 41% 42% 11% 47% 54% 24% 36% 25% 25% Retail Office Industrial Greater JHB Western Cape Kwazulu-Natal Healthcare Trading & Development Pretoria Eastern Cape North West Other 70
Slide 71: Net Property Income Analysis RSA
ANNEXURE 22: NET PROPERTY INCOME ANALYSIS RSA FY20 FY19 INCREASE/ Rm Rm (DECREASE) Gross property revenue 8 269 8 627 (4.1%) Retail 3 108 3 341 (7.0%) Office 3 342 3 510 (4.8%) Industrial 1 515 1 461 3.7% Healthcare 263 240 9.6% Trading & Development 41 75 (45.3%) Property expenses (2 412) (2 211) 9
Slide 72: Acquisitions RSA
ANNEXURE 23: ACQUISITIONS RSA PURCHASE PRICE ACQUISITIONS SECTOR DATE Rm YIELD 1 Holwood Park, Umhlanga Ridge, Durban Office December 2019 113.8 10.1 1 Georgian Crescent, Bryanston Office December 2019 20.5 9.8 Grand Prix Park, Gosforth Park, Germiston Industrial March 2020 140.3 7.7 Total 274.6 72
Slide 73: Disposals RSA
ANNEXURE 24: DISPOSALS RSA SELLING PROFIT/(LOSS) PROFIT/(LOSS) PRICE ON COST ON BOOK VALUE YIELD DISPOSALS SECTOR DATE Rm Rm Rm % Sunward Park, Boksburg Retail July 2019 147.0 (28.5) (2.2) 9.3 Stanger, Durban Retail October 2019 17.0 (0.8) - 4.6 10 St Andrews Road, Parktown, Johannesburg Office Sept
Slide 74: Developments & Capital Expenditure RSA
ANNEXURE 25: DEVELOPMENTS & CAPITAL EXPENDITURE RSA TOTAL COST ESTIMATED FY20 DEVELOPMENTS & CAPITAL EXPENDITURE(1) SECTOR Rm COMPLETION DATE Rm Waterfall Mall, Rustenburg Retail 72.0 November 2020 59.4 Lakeside Mall, Benoni Retail 74.7 November 2020 57.9 La Lucia Mall, La Lucia, Durban Retail 66.1
Slide 75: Developments & Capital Expenditure RSA cont.
ANNEXURE 26: DEVELOPMENTS & CAPITAL EXPENDITURE RSA cont. TOTAL COST ESTIMATED FY20 DEVELOPMENTS & CAPITAL EXPENDITURE(1) SECTOR Rm COMPLETION DATE Rm Millroad Industrial Park, Bellville, Cape Town Industrial 174.4 November 2019 69.0 Mt Edgecombe Industrial Park, Umhlanga, Durban Industrial 129.6 Se
Slide 76: Commitments RSA
ANNEXURE 27: COMMITMENTS RSA ESTIMATED APPROVED COMPLETION/ DEVELOPMENT FY20 COMMITMENTS SECTOR TRANSFER DATE COST Rm Rm Lakeside Mall, Benoni Retail November 2020 74.7 32.0 Waterfall Mall, Rustenburg Retail November 2020 72.0 25.3 Middestad Mall, Bellville, Cape Town Retail October 2020 23.7 10.1 W
Slide 77: Non-current Assets Held for Sale
ANNEXURE 28: NON-CURRENT ASSETS HELD FOR SALE FY20 PROPERTIES HELD FOR SALE SECTOR Rm Cummings, Eastgate, Sandton Industrial 70.0 Maskew, Isando, Kempton Park Industrial 14.4 Total 84.4 77
Slide 78: Retail Overview RSA
ANNEXURE 29: 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 1 989 56 295 The Foschini Group Ltd 58 234 Festival Mall, Kempton Park, Johannesburg 1 660 82 804 Pepkor Holdings Ltd 72 763 Waterfall M
Slide 79: Office Overview RSA
ANNEXURE 30: 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 2 193 64 127 Discovery Holdings Ltd (55%) 66 696 The Woodlands, Woodmead, Johannesburg 1 581 97 758 Transnet 31 535 Constantia Office Park, Roodepoor
Slide 80: Industrial Overview RSA
ANNEXURE 31: INDUSTRIAL OVERVIEW RSA FAIR VALUE GLA GLA(1) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Growthpoint Business Park, Midrand 598 68 627 The Bidvest Group Ltd 58 681 Montague Business Park (25%), Montague Gardens, Cape Town 395 41 048 Adcock Ingram Holdings Ltd 34 549 Hilltop Indu
Slide 81: Healthcare Overview RSA
ANNEXURE 32: HEALTHCARE OVERVIEW RSA FAIR VALUE GLA GLA(1) PROPERTIES BY VALUE Rm m² TENANTS m² Hillcrest Private Hospital, Hillcrest, Durban 754 20 445 Busamed Holdings Ltd 43 054 Gateway Private Hospital, Umhlanga Ridge, Durban 738 22 609 Netcare Limited 18 481 N1 Hospital, Goodwood, Cape Town 552
Slide 82: GLA & Vacancy Reconciliation RSA
ANNEXURE 33: GLA & VACANCY RECONCILIATION RSA TOTAL GLA VACANT AREA VACANCY m² m² % Balance as at 1 July 2019 5 392 006 367 552 6.8 GLA adjustments (28 688) 577 Disposals (77 826) (23 093) Acquisitions 27 402 9 400 Developments and extensions 180 839 180 839 Leases expired in the period(1) 948 073 R
Slide 83: Key Performance Indicators V&A Waterfront
V&A Waterfront, Cape Town ANNEXURE 34: KEY PERFORMANCE INDICATORS V&A WATERFRONT (50%) FY20 FY19 Vacancies (%) 1.5 1.2 Total arrears (Rm) 120.5 37.4 Provision for bad debts (B/S) (Rm) 67.4 8.0 Bad debts (I/S) (Rm) 60.5 0.2 Average in force escalations (%) 7.5 7.5 Renewal success rate (%) 85.3 79.4 T
Slide 84: Portfolio Overview V&A Waterfront
ANNEXURE 35: PORTFOLIO OVERVIEW V&A WATERFRONT (50%) NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE R594m R657m R594m R9 141m R9 570m R9 447m 4.5% 4.4% 8.8% 4.7% 7.7% 8.5% 7.7% 9.1% 8.1% 11.6% 11.7% 21.9% 11.9% 21.0% 22.1% 24.7% 24.0% 25.8% 23.6% 22.6% 27.6% 51.7% 51.5% 49.6% 47.3% 45.7% 42.2% FY18 FY
Slide 85: Split of V&A Waterfront Property Portfolio
ANNEXURE 36: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO PROPERTY PORTFOLIO PROPERTY PORTFOLIO NET PROPERTY DEVELOPED VS. BY VALUE BY GLA INCOME UNDEVELOPED BY VALUE 8% 4% 8% 4% 22% 22% 12% 23% 43% 50% 23% 26% 33% 26% 96% Retail Office Hotel & Residential Marine & Industrial Bulk Developed Undevelope
Slide 86: Developments & Commitments V&A Waterfront
ANNEXURE 37: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%) APPROVED COST ESTIMATED FY20 SECTOR Rm COMPLETION DATE Rm DEVELOPMENTS & CAPITAL EXPENDITURE(1) Site B “The Ridge”: Deloitte Office 408.6 October 2020 58.2 Dock Road Junction Office 33.9 January 2020 11.9 Woolworths Extension Retail 179.5
Slide 87: Distributable Income Analysis V&A Waterfront
ANNEXURE 38: DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%) FY20 FY19 INCREASE/ Rm Rm (DECREASE) Gross property revenue 920 920 - Property related 863 852 Radisson Red Hotel 57 68 Property expenses (326) (263) 23.9% Property related (294) (225) Radisson Red Hotel (32) (38) Net property income 59
Slide 88: Net Property Income Analysis V&A Waterfront
ANNEXURE 39: NET PROPERTY INCOME ANALYSIS V&A WATERFRONT (50%) FY20 FY19 INCREASE/ Rm Rm (DECREASE) Gross property revenue 920 920 - Property related 863 852 Radisson Red Hotel 57 68 Property expenses (326) (263) 23.9% Property related (294) (225) Radisson Red Hotel (32) (38) Net property income 594
Slide 89: V&A Waterfront Overview
ANNEXURE 40: V&A WATERFRONT OVERVIEW TOP 10 TENANTS (100%) GLA(1) m² LEASE EXPIRY (% OF GLA) Vacant 1 Allan Gray (Pty) Ltd 20 357 By FY21 15 Nedbank Group Ltd 25 433 By FY22 14 Legacy Hotels 16 226 By FY23 12 Tourvest Holdings Ltd 4 530 By FY24 10 The Foschini Group Ltd 4 409 By FY25 4 Woolworths 10
Slide 90: GLA & Vacancy Reconciliation V&A Waterfront
ANNEXURE 41: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%) TOTAL GLA VACANT AREA VACANCY m2 m2 % Balance as at 1 July 2019 225 490 2 740 1.2 GLA adjustments (248) (248) Developments and extensions 2 173 1 531 Leases expired in the period(1) 43 443 Renewals of expired leases(2) (37 069) New letti
Slide 91: Key Performance Indicators GOZ
1 Charles Street, Parramatta, New South Wales ANNEXURE 42: KEY PERFORMANCE INDICATORS GOZ FY20 FY19 Vacancies (%)(1) 6.8 2.0 Total arrears (Rm) 20.5 6.2 Provision for bad debts (B/S) (Rm) - - Renewal success rate (%) 84.9 66.5 Total letting success rate (%) 83.2 58.6 Weighted average renewal growth
Slide 92: Portfolio Overview GOZ
ANNEXURE 43: PORTFOLIO OVERVIEW GOZ NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE NUMBER OF PROPERTIES R2 174m R2 337m R2 537m R33 591m R38 705m R51 845m 57 57 58 600 00.0 0 14.0 30 00 .00 10.6 AUD/ZAR AUD/ZAR 10.49 10.5 11.98 12.0 500 00.0 0 25 00 .00 10.4 36.0% 10.16 31.8% 10.0 9.89 10.3 400 00.0 0
Slide 93: Split of GOZ Property Portfolio
ANNEXURE 44: SPLIT OF GOZ PROPERTY PORTFOLIO VALUE (AUD) GLA VALUE GLA 2% 4% 7% 12% 32% 8% 28% 31% 39% 14% 25% 68% 14% 69% 28% 19% Victoria Queensland New South Wales Western Australia Office Industrial South Australia ACT 93
Slide 94: Acquisitions, Developments & Commitments GOZ
ANNEXURE 45: ACQUISITIONS, DEVELOPMENTS & COMMITMENTS GOZ ESTIMATED FY20 FY20 DEVELOPMENT & CAPITAL EXPENDITURE SECTOR COMPLETION DATE Rm AUDm 599 Main North Road, Gepps Cross, SA Industrial 4Q2020 448.4 38.2 120 Northcorp Boulevard, Broadmeadows, VIC Industrial 2Q2020 42.4 3.6 Lots 2, 3 & 4, 34-44
Slide 95: Net Property Income Analysis GOZ
ANNEXURE 46: NET PROPERTY INCOME ANALYSIS GOZ FY20 FY19 INCREASE / AUDm AUDm (DECREASE) Gross property revenue 293.4 276.0 6.2% Property expenses (51.3) (45.6) 11.8% Net property income 242.1 230.4 5.1% Adjustments (22.8) (15.7) Acquisitions (22.8) (12.4) Disposals - (3.3) Developments - - Adjusted
Slide 96: GOZ Overview
ANNEXURE 47: GOZ OVERVIEW FAIR VALUE GLA GLA(2) TOP 10 PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² 1 Charles Street, Parramatta, NSW Office 5 270 32 356 Woolworths 248 169 100 Skyring Terrace, Newstead, QLD Office 3 043 24 665 NSW Police Force 32 356 70 Distribution Street, Larapinta, QLD Industrial
Slide 97: GLA & Vacancy Reconciliation GOZ
ANNEXURE 48: GLA & VACANCY RECONCILIATION GOZ TOTAL GLA VACANCY(1) m2 % Balance as at 1 July 2019 1 026 466 2.0 GLA adjustments (204) Disposals - Acquisitions, developments and extensions 16 668 Leases expired in the period - Renewals of expired leases - New letting of vacant space - Leases terminat
Slide 98: Key Performance Indicators C&R
The Mall, Maidstone, United Kingdom ANNEXURE 49: KEY PERFORMANCE INDICATORS C&R FY20 Vacancies (%) 5.0 Total arrears (Rm) 300.0 Provision for bad debts (B/S) (Rm) 13.0 Weighted average renewal growth (%) -27.7 Net property income (Rm) From 13 December 2019 (date of acquisition) 380.0 Number of prope
Slide 99: Split of C&R Property Portfolio
ANNEXURE 50: SPLIT OF C&R PROPERTY PORTFOLIO VALUE GLA 5% 10% 8% 17% 30% 8% 16% 11% 25% 15% 19% 19% 9% 8% Wood Green Luton Walthamstow Ilford Maidstone Blackburn Hemel 99
Slide 100: Commitments C&R
ANNEXURE 51: COMMITMENTS C&R ESTIMATED FY20 FY20 COMMITMENTS SECTOR COMPLETION DATE Rm GBPm Maidstone – Works for Matalan and Gym Retail September 2020 33.2 1.5 Luton – TK Maxx incentive Retail July 2020 10.8 0.5 Luton – Tesco asbestos works Retail August 2020 13.7 0.6 Walthamstow - Development cost
Slide 101: Net Property Income Analysis C&R
The Mall, Blackburn, United Kingdom ANNEXURE 52: NET PROPERTY INCOME ANALYSIS C&R FY20 From 13 December 2019 (date of acquisition) GBPm Gross property revenue 26.1 Property expenses (9.9) Net property income 16.2 Adjustments - Adjusted “like-for-like” net property income 16.2 101 101
Slide 102: C&R Overview
ANNEXURE 53: C&R OVERVIEW FAIR VALUE GLA GLA(1) PROPERTIES BY VALUE Rm m² TOP 10 TENANTS m² Wood Green Retail 3 863 57 318 A.S. Watson (Health & Beauty) Ltd 4 746 Walthamstow Retail 2 698 26 428 Alliance Boots Ltd 16 358 Luton Retail 3 022 82 860 Primark Stores Ltd 13 372 Ilford Retail 1 452 28 705
Slide 103: Thank you
Thank you
Growthpoint Properties — FY2020 Earnings Presentation on 6ix