1 Redefine group results for the year ended 31 August 2019
Our conversation The critical levers that impact our ability to create value Strategic matters Grow Invest Optimise Operate Engage Reputation Strategically Capital Efficiently Talent Creating sustained Securing capital in a Operating in a low Harnessing our people’s skills, Living our purpose value for all our constrained and costly growth, rising stakeholders environment administered cost context abilities and attitude Strategic objectives 2 Redefine group results for the year ended 31 August 2019
Growing reputation Section 01 Placing people at the heart of what we do 3 Redefine group results for the year ended 31 August 2019
Key outcomes for 2019 Relationships are the lifeblood of our people-centric approach Carbon emissions savings from our solar Expanded external waste management to Continue to install various technologies such Environment installations for the year equate to taking office buildings as part of our Green Star as online monitoring and leak detection, smart approximately 6 300 passenger cars off programme shutoff valves and sensors in bathrooms to the road reduce water consumption International Council of Shopping Centres Centurion Mall and Kyalami Corner 233 stakeholders engaged with the second Social Solal award for Innovation Challenge won Gold at Footprint Marketing Challenge Convention at Maponya Mall G r o w i n g r e p u t a t i o n Awards 2019 3 rd in EY excellence in integrated Improved board independence – appointed Focus on embedding IT governance Governance Daisy Naidoo. 88% of non-executive reporting 2019 standards and aligning IT services directors independent, 50% of board is with current and future business needs female High Solar PV Groundwater extraction Return on investment LED retrofit Water efficiency Energy storage Waste water treatment Waste recycling Green Star certifications Green cleaning Low High Environmental benefit 4 Redefine group results for the year ended 31 August 2019
Looking ahead Achieving stakeholder goals to create sustained value 2020 focus Our stakeholder goals Safeguard Redefine’s brand A source of sustained growth in total returns for investors and funders Remain relevant to stakeholders G r o w i n g r e p u t a t i o n An employer of choice for employees Heighten focus on ESG A differentiated provider of relevant space to tenants Anticipated outcome A preferred business partner for brokers and suppliers Improve stakeholder perceptions A responsible community participant Embed ESG considerations in all aspects 5 Redefine group results for the year ended 31 August 2019
Investing strategically Section 02 Positioning the core portfolio to withstand prevailing conditions 6 Redefine group results for the year ended 31 August 2019
Key outcomes for 2019 Advancing our strategy to diversify, grow and improve the quality of the property asset platform Capital deployed of R6.9 billion Property assets under management expanded to R95.4 billion Development activities and capex 4 659 EPP shares 2 036 Torre Modderfontein 80 Deployed R6.9 billion European Logistics Platform land I n v e s t i n g s t r a t e g i c a l l y 73 into property assets JD Rosslyn (50%) 50 55 Empire Road 33 Offshore expansion totaled Atlantic Hills (55%) 6 R4.3 billion, with R3.6 billion Rm invested in Poland Sectoral split of development activities and capital expenditure R4.7 billion Local development activity totaled 732 R2.4 billion Office Retail 1 545 NTAV declined by Industrial 33.0 cents per share to 817 Rm 943.9 cents per share Residential Local Student Accommodation Local student accommodation Australian student accommodation Leicester street development 678 556 Offshore logistics European Logistics Platform 195 136 7 Redefine group results for the year ended 31 August 2019
Local portfolio profile A well-located, high-value, high-quality and efficient portfolio Impact of portfolio restructure Carrying value Retail 40% R # R72.8 billion 333 of local portfolio value 327 315 312 20 000 302 350 (FY18 | R72.4bn) (FY18 | 40%) 300 14 382 15 854 15 000 12 870 250 11 096 10 093 200 10 000 I n v e s t i n g s t r a t e g i c a l l y 150 Office 36% 73% located in 100 5 000 Gauteng of local portfolio value 50 (FY18 | 73%) (FY18 | 37%) 0 0 FY15 FY16 FY17 FY18 FY19 Average value per m² (R) Number of properties (#) Industrial 19% 18% located in of local portfolio value Western Cape (FY18 | 19%) (FY18 | 17%) 8 Redefine group results for the year ended 31 August 2019
Local portfolio highlights A focus on organic growth Exit cap rate per sector Average value Active portfolio capital per property of Student accommodation 10.6% appreciation of 3.3% R236 million Specialised (FY18 | R221m) 9.6% Industrial 9.2% Developments in progress Completed developments I n v e s t i n g s t r a t e g i c a l l y Office 8.6% total R342.8 million totaling R2.7 billion at at average projected yield Retail average yield of 8.9% 8.4% of 9.3% 0% 2% 4% 6% 8% 10% 12% Total active Disposals totalling Lease expiry profile by GLA (m²) vacancy of 5.1% R1.4 billion 33% 1 600 (FY18 | 4.5%) at yield of 8.2% Thousands 1 200 16% Tenant retention 800 Total letting 13% 11% by GLA 93.3% 9% at 841 857m² 8% 6% 400 (FY18 | 90.4%) 4% (FY18 | 942 102m²) 0 Monthly 2020 2021 2022 2023 2024 Beyond Vacancy 2024 9 Redefine group results for the year ended 31 August 2019
Retail portfolio overview Differentiating by creating outstanding places for modern consumer lifestyles GLA Value Active vacancy Value by type (%) 6% 16% R28.8 billion 1.4 million m² 4.6% 6% (FY18 | R27.8bn) (FY18 | 1.4 million m²) (FY18 | 4.5%) I n v e s t i n g s t r a t e g i c a l l y Trading density growth Footfall growth Sales growth (like-for-like) (like-for-like) -1.8%* 4.2% 37% 3.0% 35% (FY18 | -2.0%) (FY18 | 3.7%) (FY18 | 3.3%) Rent to turnover Tenant retention Renewal reversion by GLA Super regional 8.0%* -1.8% Regional 94.1% (FY18 | 7.9%) (FY18 | 0.1%) Community / Small regional (FY18 | 90.7%) Neighbourhood Other Completed Edcon exposure Renewal success rate developments and reduced by by GLA redevelopments of 11 474m² to R959.3 million 72.0%** 71 223m² at yield of 7.2% * Figures are based on top 19 shopping centres ** Excludes monthly leases 10 Redefine group results for the year ended 31 August 2019
Office portfolio overview Efficient, modern facilities to enable work-life integration GLA Value Active vacancy Value by grade (%) 15% R25.4 billion 1.2 million m² 10.2% (FY18 | R25.9bn) (FY18 | 1.3 million m²) (FY18 | 9.5%) I n v e s t i n g s t r a t e g i c a l l y Tenant retention by Renewal reversion Renewal success rate 51% GLA by GLA 91.4% -2.0% 56.7%* (FY18 | 87.7%) (FY18 | -3.1%) 34% Green star rated Solar PV roll-out of Installation of buildings increased to 2 408 Kwp WeWork 74 Premium at Rosebank Link A Grade Secondary Completed new Redevelopments in Disposals developments of progress of R613.5 million R1.3 billion R653.6 million at yield of 7.5% at yield of 8.4% at yield of 6.5% * Excludes monthly leases 11 Redefine group results for the year ended 31 August 2019
Industrial portfolio overview Incorporating key design elements to functionally differentiate our offering GLA Value Active vacancy 10% Value by type (%) R13.8 billion 1.8 million m² 1.8% 1% 7% (FY18 | R13.1bn) (FY18 | 1.8 million m²) (FY18 | 1.0%) 46% I n v e s t i n g s t r a t e g i c a l l y Acquisitions of Disposals of Tenant credit risk on the rise – R135.8 million R147.4 million Robor at an average yield of at a yield of 9.3% 22% in liquidation 9.7% 14% Renewal success rate Tenant retention by Renewal reversion by GLA GLA -3.6% Warehousing / Logistics 65.7%* 93.8% (FY18 | 2.9%) Light manufacturing (FY18 | 91.8%) Heavy grade industrial Industrial units Completed new New developments Infrastructure projects Big box retailer developments of in progress of in progress Land R342.7 million R236.5 million R720.9 million at yield of 9.2% at yield of 9.3% *Excludes monthly leases 12 Redefine group results for the year ended 31 August 2019
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