Emira Property Fund Ltd. · JSE:EMI
Emira Property Fund — RMB Morgan Stanley Property Showcase 2013
25 slides from Emira Property Fund's conference presentation, May 2013
Slide 1: RMB Morgan Stanley Property Showcase
MAY 2013 RMB MORGAN STANLEY PROPERTY SHOWCASE
Slide 2: Agenda
May 2013 AGENDA Current Market Vacancies Fundamentals Tenant retention Reversions Leasing Project Pipeline Acquisitions, redevelopments and refurbs : actual Acquisitions, redevelopments and refurbs : blue-sky Disposals Outlook for the Financial outlook FY13 Fund Financial outlook FY14 Investment Cas
Slide 3: Current Market Fundamentals
MAY 2013 CURRENT MARKET FUNDAMENTALS
Slide 4: Physical Portfolio at 31 December 2012
May 2013 PHYSICAL PORTFOLIO AT 31 DECEMBER 2012 PHYSICAL PORTFOLIO AT 31 DECEMBER 2012 No of GLA Valuation Avg value Sector buildings (m²) (R ’000) R/m² (Rm) Office – Grade A 26 163 320 2 224 227 13 619 85.6 Office – Grade B 39 256 907 2 098 538 8 167 53.8 Office – Grade C 2 14 932 56 000 3 750 28.0
Slide 5: Vacancy Profile by GLA
May 2013 VACANCY PROFILE BY GLA 25% 19.8% 20% 18.6% 15% 14.4% 13.4% 11.3% 10.2% 10% 8.2% 7.8% 6.5% 6.9% 5% 4.3% 4.2% 4.4% 3.2% 3.0% 2.9% 0% Office Retail Industrial Total Dec 2011 Jun 2012 Dec 2012 Apr 2013 5
Slide 6: Tenant Retention
May 2013 TENANT RETENTION 12 months to 10 months to Apr June 12 13 m² No of leases m² No of leases Expiring 324 950 765 311 824 629 Renewed 211 310 426 218 731 376 As a % 65% 55% 70%* 60% *Includes early renewal of RTT ACSA Park (46 673m²) and RTT Continental (12 921m²), excluding this tenant retent
Slide 7: Reversions – Renewals (Gross Rentals)
May 2013 REVERSIONS – RENEWALS (GROSS RENTALS) Avg expiry Avg new lease Increase/ Sector Area rental rental (Decrease) Office 69 221 102.91 97.14 (5.6%) Retail 29 229 115.24 115.51 +0.2% Industrial* 130 153 52.31 47.34 (9.5%) Total 228 603 75.56 71.23 (5.7%) *Includes early renewal of RTT ACSA Park
Slide 8: Reversions – Renewals (Gross Rentals)
May 2013 REVERSIONS – RENEWALS (GROSS RENTALS) Office 15/36 buildings upwards: range +11% from R72/m² (2 678m² at Epsom Downs Office Park) and -25% from R55/m² (1 818m² at Georgian Place) Retail 30/40 buildings upwards: range +14% from R72/m² (314m² at Flagstaff Shopping Centre) and -44% from R323/m
Slide 9: Reversions – New Leases (Gross Rentals)
May 2013 REVERSIONS – NEW LEASES (GROSS RENTALS) Avg expiry Avg new lease Increase/ Sector Area rental rental (Decrease) Office 24 077 94.10 83.84 (10.9%) Retail 9 629 138.48 127.08 (8.2%) Industrial 30 261 39.48 34.93 (11.5%) Total 63 967 73.80 67.56 (8.5%) 9
Slide 10: Reversions – New Leases (Gross Rentals)
May 2013 REVERSIONS – NEW LEASES (GROSS RENTALS) Office 8/35 buildings upwards: range +23% from R45/m² (714m² at Sandgate Park) and -37% from R111/m² (149m² at Wesbank House) Retail 10/22 buildings upwards: +19% from R103/m² (30m² at Greytown Centre) and -58% from R150/m² (50m² at The Colony Centre)
Slide 11: Reversions – Total (Gross)
May 2013 REVERSIONS – TOTAL (GROSS) Avg expiry Avg new lease Increase/ Sector Area rental rental (Decrease) Office 93 298 100.60 93.71 (6.9%) Retail 38 858 120.94 118.38 (2.1%) Industrial* 160 414 49.74 45.00 (9.5%) Total 292 570 75.17 70.42 (6.3%) *Includes early renewal of RTT ACSA Park (46 673m²)
Slide 12: Leases > 2000m2 Concluded in FY13 To-Date
May 2013 LEASES > 2000m2 CONCLUDED IN FY13 TO-DATE New Leases Renewals Total Number of leases 12 13 25 Total m2 51,551 105,964 157,514 Avg duration Yrs 5 3 4 Value Rm 250 270 520 High quality tenants: RTT Group, BMW, Eskom, TCTA, Sasol, Bateman etc. 12
Slide 13: Leasing Outlook
May 2013 LEASING OUTLOOK Property Tenant Lease End GLA Status (m²) Southern Centre Pick n Pay Dec 12 13,893 Renewing – terms agreed WGA Epping Warehouse Nampak Jul 13 11,064 Vacating – a few interested parties Defy Appliances Defy Appliances Jan 14 10,100 Renewing WGA Epping Warehouse Santam Sept 13
Slide 14: Projects Pipeline
MAY 2013 PROJECTS PIPELINE
Slide 15: Ongoing Projects and Acquisitions
May 2013 ONGOING PROJECTS AND ACQUISITIONS Value Major projects not yet complete Completion (Rm) Wonderpark Shopping Centre 513.0 May 15 15
Slide 16: Ongoing Projects and Acquisitions
May 2013 ONGOING PROJECTS AND ACQUISITIONS Value Major projects not yet complete Transfer (Rm) Highgrove Office Park – purchase of further 3 buildings 24.6 Jul 13 16
Slide 17: Ongoing Projects and Acquisitions
May 2013 ONGOING PROJECTS AND ACQUISITIONS Major projects not yet complete Value (Rm) Completion Wonderpark Shopping Centre 513.0 May 15 Hyde Park Lane 21.3 Aug 13 Braamfontein Centre 16.8 Mar 13 Tuinhof 9.7 Aug 13 Linksfield Road 9.6 Sep 13 East Coast Radio House 10.0 Jul 13 20 Anvil, Isando 4.8 Ma
Slide 18: Potential New Capex Projects
May 2013 POTENTIAL NEW CAPEX PROJECTS Value Construction Major projects being considered Type m2 (Rm) time Podium Phase 2, Menlyn Office 9,000 165 15 months 122 Pybus Rd, Sandton Office 12,000 250 15 months West Street, Centurion Office 22,500 417 18 months Total 43 500 832 18
Slide 19: Disposals
May 2013 DISPOSALS Selling Price Name Location Sector GLA (Rm) Yield Transfer Date Mutual Mews Rivonia Retail 1 596 11.9 11.9% 31 Jul 12 Cape 33 Heerengracht Office 6 744 25.0 -1.4% 3 Aug 12 Town Midrand Business Park Midrand Office 13 420 49.0 10.9% 31 Aug 12 WorldWear Fairlands Retail 14 172 34.5
Slide 20: Outlook for the Fund
MAY 2013 OUTLOOK FOR THE FUND
Slide 21: Commercial Property Market Outlook
May 2013 COMMERCIAL PROPERTY MARKET OUTLOOK National office development at 697 000m², 4.5% of the market Industrial supply currently limited, although poised to increase Supply side Retail supply is mixed Building costs rising once more, debt finance is limited Tenants have plenty of alternatives, b
Slide 22: Financial Outlook FY13
May 2013 FINANCIAL OUTLOOK FY13 Healthy growth due to acquisitions and redevelopments; reducing Gross income vacancies and double-digit increase in recoveries Expected to rise less than gross income, municipals costs to rise sharply, maintenance and refurbishments to reduce after high base in FY12,
Slide 23: Financial Outlook FY13
May 2013 FINANCIAL OUTLOOK FY13 Expect distributions per PI for the twelve months to 30 June 2013 to show similar growth to 1H13 23
Slide 24: Investment Case
MAY 2013 INVESTMENT CASE EMIRA PROPERTY FUND
Slide 25: Investment Case
May 2013 INVESTMENT CASE PI Price 1 591 cents I-Net consensus forecast per PI to June 2013 = 114.5 cents (+3.5%) FY13 Forecast I-Net consensus forecast per PI to June 2014 = 120.1 cents (+4.9%) Forward yield to June 14 of 7.2% Forward yield Using “clean” price, rolling 12-mth forward yield of 7.4% H
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