Accelerate Property Fund Ltd. · JSE:APF
Accelerate Property Fund — RMB conference 2016
34 slides from Accelerate Property Fund's conference presentation, Sep 29, 2016
Slide 1: Accelerate Property Fund: From Strength to Strength
ACCELERATE PROPERTY FUND: FROM STRENGTH TO STRENGTH 1
Slide 2: Accelerate Property Fund: From Strength to Strength
ACCELERARE PROPERTY FUND: FROM STRENGTH TO STRENGTH Indicator Listing (12 December 2016) Now Market cap • R 3.2 billion • R5.2 billion Portfolio value • R5.5 billion • R9.2 billion Number of properties • 51 properties • 60 properties Forward yield • 9.06% • 9.61% GLA • 440 520 m2 533 133 m2 Distribu
Slide 3: Major Acquisitions Since Listing
MAJOR ACQUISITIONS SINCE LISTING 3
Slide 4: KPMG Portfolio - May 2015
KPMG PORTFOLIO - 14 MAY 2015 Portfolio: 6 A Grade offices, including KPMG head office Single tenant: KPMG Acquisition price: R850m Lease: 15 years triple net Escalation rates: 8% per annum Yield (year 1): 8% Finance: Fully debt underwritten by LTV on this deal has since been reduced to under 50% Tra
Slide 5: Portside Tower in Cape Town - June 2016
PORTSIDE TOWER IN CAPE TOWN – 14 JUNE 2016 Building specifics: 25,127 m2 of P-grade, 5-star green rated office & retail building Acquisition price: R755m Yield (year 1): 7,5% Finance: Fully debt funded Salient features: R 100m rental guarantee from seller Transferred 14 June 2016 5
Slide 6: Eden Meander (George) - To Transfer Late September 2016
EDEN MEANDER (GEORGE) – TO TRANSFER LATE SEPTEMBER 2016 Building specifics: 28 390 m2 convenience centre in George To transfer late September 2016 Anchor tenants: - Checkers - Pick n Pay clothing - Builders warehouse Acquisition price: R365m Yield (year 1): 9.1% Finance: Fully debt funded 6
Slide 7: Accelerate at March 2016
ACCELERATE AT 31 MARCH 2016 ACCELERATE / PROPERTY FUND
Slide 8: Accelerate at a Glance as at March 2016
ACCELERATE AT A GLANCE AS AT 31 MARCH 2016 Agterskot vacancies to the value of R 18 960 Property portfolio Asset value: R8.4bn Agterskot 028 were filled during the year Fourways Precinct: 179 893m² Charles Crescent – Kramerville: 44 380m² • Internal asset management function Strategic nodes Entity s
Slide 9: Highlights for the Year Ended March 2016
HIGHLIGHTS FOR THE YEAR ENDED 31 MARCH 2016 March 2016 distribution: 53.67 cents per share Distribution to shareholders March 2015 distribution: 49.21 cents per share Distribution growth year-on-year: 9.1% Completed the KPMG acquisition on 14 May 2015 at a fully debt funded purchase price KPMG deal
Slide 10: Key Ratios Against Previous Results and the Market
KEY RATIOS AGAINST PREVIOUS RESULTS AND THE MARKET Key indicator summary 31 March 31 March 2016 2015 Distribution per share (cents) 53.67 cents 49.21 cents Yield 8.61% 7.3% Portfolio value (R bn) 8.4 6.77 GLA (m2) 520 226 467 208 Number of properties 61 52 Net asset value (R bn) 5.7 4.6 Weighted ave
Slide 11: Capital Structure
CAPITAL STRUCTURE Long-term debt funding maturity profile (Rm) Long-term debt allocation 500 31 March 2016 31 March 2015 Bank funding (Rm)* % (Rm) % 400 Debt capital markets 1 001 33,5% 416 17,4% 300 Bank funding 1 991 66,5% 1 978 82,6% 200 Total 2 992 100,0% 2 394 100,0% 100 0 Weighted average May
Slide 12: Our Nodal Strategy
ACCELERATE ] PROPERTY FUND OUR NODAL STRATEGY
Slide 13: Strategic Positioning of Accelerate Property Fund
STRATEGIC POSITIONING OF ACCELERATE PROPERTY FUND R8.4 billion of assets at 31 March 2016 (R9.5 billion including acquisitions transferred since 31 March 2016 and Eden Meander) Significant retail bias (70.7% by revenue including acquisitions transferred since 31 March 2016 and Eden Meander) Low vaca
Slide 14: Strategic Positioning of Accelerate Property Fund
STRATEGIC POSITIONING OF ACCELERATE PROPERTY FUND Strategic nodes Insert picture of Eden Meander CHARLES CRESCENT, JOHANNESBURG KPMG PORTFOLIO EDEN MEANDER SHOPPING CENTRE Total GLA 44,380 m2 Approximately 30,000m2 plus Total GLA 30 226 m2 Total GLA significant bulk (To transfer late Valuation R411
Slide 15: Strategic Positioning of Accelerate Property Fund
STRATEGIC POSITIONING OF ACCELERATE PROPERTY FUND Strategic nodes Insert picture of Checkers Warehouse OTHER PROPERTIES TOTAL PORTFOLIO (Including Eden Meander) Total GLA 239 750 m2 Total GLA 568 078m2 Valuation R1.8 billion Valuation after Checkers Warehouse (Montague Gardens, Western Cape) acquisi
Slide 16: The Fourways Mall Development and Refurbishment
THE FOURWAYS MALL DEVELOPMENT AND REFURBISHMENT 16
Slide 17: Fourways Mall Development and Refurbishment
FOURWAYS MALL DEVELOPMENT AND REFURBISHMENT 17
Slide 18: The Fourways Mall Development and Refurbishment
THE FOURWAYS MALL DEVELOPMENT AND REFURBISHMENT Commencement Third Quarter 2015 Salient construction features Mota Engil contracted for the build Pre-cast concrete method build Approximately 3 years Anticipated Phase 1 – Food court, parkades and Technology & Banking court – November 2016 build time
Slide 19: Refurbishment of Cedar Square
REFURBISHMENT OF CEDAR SQUARE 19
Slide 20: Cedar Refurbishment
CEDAR REFURBISHMENT Scope: Extension of Woolworths to 3 000 m2 upgrade of façade, overall revamp and refurbishment Approximate cost: R60m for the extension of the Woolworths and upgrade of façade R 40 million for additional upgrades Timing: Completion towards the end of 2016 20
Slide 21: Our Top Ten Properties (by Value)
OUR TOP TEN PROPERTIES (BY VALUE) 21
Slide 22: Top Ten Properties by Value
TOP TEN PROPERTIES BY VALUE Top ten properties by value* Property name Region Value GLA Fourways Mall Shopping Centre Gauteng 2 417 200 000 61 480 Cedar Square Gauteng 979 531 662 46 025 Portside Western Cape 755 000 000 25 127 KPMG Crescent Gauteng 631 102 337 20 096 Fourways View Gauteng 328 386 2
Slide 23: Offshore - Exploring New Horizons
OFFSHORE – EXPLORING NEW HORIZONS 23
Slide 24: Our Offshore Strategy
OUR OFFSHORE STRATEGY On 20 April 2016, Accelerate announced its strategy to establish a subsidiary (“Accelerate Europe”) that will focus on the acquisition, management and development of single tenant net leased properties that are strategic to blue-chip multinational or large regional tenants in C
Slide 25: Unique Value Proposition for the CEE Region
UNIQUE VALUE PREPOSITION FOR THE CEE REGION ADDRESSES CONCERNS REGARDIING SA REITS INVESTING OFFSHORE Specialist focus within an established and defensive asset class and exposure only to blue-chip investment grade tenants − Focus on target countries in CEE with: − established domestic industry demo
Slide 26: Our Team
OUR TEAM 26
Slide 27: Company Structure
COMPANY STRUCTURE Non-Executive Chairman Tito Mboweni Investment Committee Gert Cruywagen Audit Committee Chief Executive Tim Fearnhead Officer Michael Georgiou Social and Ethics Committee Kolosa Madikizela Internal Audit Chief Operating LM Consulting Officer Andrew Costa Chief Financial Director of
Slide 28: Management and Operational Structure
MANAGEMENT AND OPERATIONAL STRUCTURE Asset management Property management Managing director Chief operations officer Head of Head of Head of legal and Head of facilities Head of leasing Head of portfolio Finance administration compliance management management 28
Slide 29: Annexure 2: Accelerate's Positioning on the JSE
ANNEXURE 2: ACCELERATE’S POSITIONING ON THE JSE 29
Slide 30: Peer Comparison: Sector Forward Yield
PEER COMPARISON: SECTOR FORWARD YIELD BASED ON CLEAN PRICE AND ROLLING 12 MONTHS DISTRIBUTION 16.1% 18.0% 14.0% 16.0% 12.8% 12.2% 14.0% 11.6% 11.6% 11.1% 10.8% 10.5% 10.1% 10.0% 12.0% 10.4% 9.9% 9.9% 9.8% 8.9% 9.3% 9.2% 9.0% 8.2% 10.0% 7.5% 8.0% 6.2% 5.2% 4.6% 6.0% 4.0% 2.0% 0.0% Resilient Fortress
Slide 31: Peer Comparison: Share Price Since Listing
PEER COMPARISON: SHARE PRICE SINCE LISTING 7.50 7.00 6.50 6.30 6.00 5.50 5.00 4.50 4.00 Accelerate JSAPY Source: Bloomberg, 15 September 2016 31
Slide 32: Peer Comparison: Market Cap
Rm 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 70,572 55,534 45,760 Source: I-Net Bridge, 15 September 2016 34,058 30,695 18,050 11,908 11,810 PEER COMPARISON: MARKET CAP 10,223 8,105 7,127 5,727 5,689 5,330 4,882 3,009 2,704 2,261 1,948 1,862 1,513 739 548 469 32
Slide 33: Peer Comparison: Listed Property Sector Rating
PEER COMPARISON: LISTED PROPERTY SECTOR RATING ACCELERATE POSITIONING FROM A BUY-IN PERSPECTIVE Sector rating: 15 September 2016 Texton 14.0% Weighted average price to NAV = 1.1 Tower 12.0% Safari Rebosis Hospitality A Arrowhead Dipula B 12-month rolling forward yield (%) Emira Synergy A Indluplace
Slide 34: Thank You
THANK YOU INVESTOR RELATIONS Instinctif Partners Tel: 011 447 3030 The Firs, 302 3rd Floor, Email: [email protected] Cnr Craddock and Biermann Road, Rosebank, Johannesburg, 2196 34