1 Redefine group interim results for the six months ended 28 February 2019
Our conversation 2 Section Key features 1 Section Property asset platform 2 Section Financial review 3 Section In conclusion 4 Section Supplementary information 5 Redefine group interim results for the six months ended 28 February 2019
Key features 3 Key features Section 1 Redefine group interim results for the six months ended 28 February 2019
The essence of who we are Key features 4 We’re not landlords. We’re people. Redefine group interim results for the six months ended 28 February 2019
Strategic approach Key features 5 It’s not about what we do – it is a matter of being different at what we do → Our strategy which has been tweaked for opportunities and risks remains largely unchanged → There is however a key shift in stakeholder emphasis as we recalibrate to a new normal to be A source of sustained growth in total returns for investors and funders − Improving the quality of earnings delivered organically − Reducing the LTV ratio to levels in keeping with our operating context An employer of choice for employees − Adopting a self-disruption approach by focusing on skills and roles to meet new challenges − Entrenching accountability to ensure everyone delivers to their best potential A differentiated provider of relevant space to tenants − Consistently upholding our brand promise to every tenant − Introducing a tenant experience management programme A preferred business partner for brokers and suppliers − Ensuring our spaces remain relevant to users’ needs − Demanding that all suppliers (including all our business partners) are aligned with our values A responsible community participant − Having a collective responsibility to ensure impactful and meaningful contributions to communities − Adding value sustainably to each community through meaningful engagement Redefine group interim results for the six months ended 28 February 2019
Progress on strategic priorities Key features 6 Relentlessly focusing on what matters most to enable the creation of sustained value Property assets under NTAV declined by 23.8 Deployed R3.5 billion into management expanded Offshore expansion Local development activity Invest cents per share to 953.1 strategically property assets by R700 million to totalled R1.9 billion totalled R1.3 billion cents per share R92.0 billion Moody’s investment Average cost of debt Agreed refinance terms Interest rates hedged on Optimise LTV of 42.3 % for all near term debt grade credit rating decreased by 10bps capital 78.2% of total debt to 6.2% maturities reaffirmed 225 363 m 2 renewed Active portfolio margin Active portfolio occupancy Tenant retention rate Total solar PV capacity Operate at an average reversion efficiently maintained at 82.2% of 94.3% at 96.6% now at 23.5 MWp of -6% Research underway to Structures reviewed to Top employer status Ongoing succession gain insight into how to 53 learners enrolled for Engage identify transformation talent maintained promote a health planning 2019 programme opportunities integrated work-lifestyle Sipho Pityana appointed Additional 30 Green AA ethics rating from Second Challenge First Innovation Grow as independent non- Existing Buildings reputation Ethics Monitor Convention held Challenge concluded executive chairperson ratings underway Redefine group interim results for the six months ended 28 February 2019
Enablers to create sustained value Key features 7 Our vision for 2030 is to create spaces that empower people Continue to install online monitoring and leak Overall carbon footprint reduced by 15% Expanded external waste management Environment detection, smart shutoff valves and sensors to in 2018 to office buildings reduce water consumption Four SDG’s identified to which we can Social Improved to level 3 BBBEE contributor status S&J expropriation notice set aside contribute the most Remuneration committee chairperson conducted Audit and risk oversight responsibilities Remuneration policy approval at 77% Governance one-on-one shareholder meetings split into separate board committees Upskilling for future challenges and Reward and recognition programme to Implemented staff management Our people career development encourage performance refreshed systems Sustainable Development Goals (SDG’s) most relevant to us Redefine group interim results for the six months ended 28 February 2019
Property asset platform 8 Property asset platform Section 2 Redefine group interim results for the six months ended 28 February 2019
Redefine’s diversified property asset platform Property asset platform 9 Positioning the platform for sustained value creation Portfolio valued at R92.0 billion Direct local property portfolio Direct international properties International listed securities Property portfolio 100.0% R68.5bn 95.0% R4.1bn Europe Logistics Platform EPP N.V. 44.4% R7.5bn Retail R28.0bn 90.0% R1.6bn Journal Student Accommodation Fund RDI REIT PLC 29.4% R3.4bn Office R26.0bn Industrial R13.7bn Chariot Top Group BV 25.0% R1.0bn Cromwell Property Group 2.7% R0.7bn Specialised R0.8bn Oando Wings Development Limited 39.9% R0.6bn Loans receivable R1.9bn GRIT Real Estate Income Group 3.6% R0.2bn Student accommodation R2.5bn R7.3bn R11.8bn Respublica 53.6% R1.3bn Directly held R1.2bn Carried at fair value R72.9bn Equity accounted Capital allocated to developments and capex Geographic spread by value Capital deployed of R4.3 billion 111 14% Rm 534 112 Europe Logistics Platform Development activities and capex 2 250 4% 273 Retail 1% EPP shares 1 017 Local 2% Office Australia Working capital 830 Rm Africa AUS student accommodation Torre Modderfontein 80 UK JD Rosslyn (50%) 50 Industrial Poland 380 450 55 Empire Road 33 Local student accommodation 79% 390 Residential Redefine group interim results for the six months ended 28 February 2019
Local portfolio profile Property asset platform 10 A well-located, high-value, high-quality and efficient portfolio Carrying value Retail 39% R72.9bn (FY18 | 40%) Impact of portfolio restructure (FY18 | R72.4bn) R # 333 327 315 314 312 20 000 350 270 300 15 581 14 382 15 000 12 870 250 73% located in Gauteng Office 37% 10 903 11 096 10 093 200 10 000 (FY18 | 73%) (FY18 | 37%) 150 100 5 000 50 0 0 FY14 FY15 FY16 FY17 FY18 HY19 Average value per m² (R) Number of properties (#) 18% located in Western Cape Industrial 19% (FY18 | 17%) (FY18 | 19%) Redefine group interim results for the six months ended 28 February 2019
Local portfolio highlights Property asset platform 11 A focus on organic growth Exit cap rate per sector Student accommodation 11.0% Average value Specialised 9.6% Active portfolio capital growth per property of R226m of 2.1% Industrial 9.2% (FY18 | R222m) Office 8.6% Developments in progress Completed new developments Retail 8.6% total R944m at average totalling R1.7bn at 0% 5% 10% 15% projected yield of 8.9% average yield of 8.6% Disposals totalling Total active Lease expiry profile by GLA R548m vacancy of 5.7% at yield of 9.8% 2 000 (FY18 | 4.5%) 37% 1 600 Thousands 1 200 Total letting Tenant retention by GLA 15% 800 at 456 717m² 96.6% 13% 13% 8% (FY18 | 493 995m²) (FY18 | 90.4%) 7% 400 3% 4% 0 Monthly 2019 2020 2021 2022 2023 Beyond Vacancy 2023 Redefine group interim results for the six months ended 28 February 2019
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