Interim results for the period ended 31 December 2014 Introduction - PowerPoint PPT Presentation

Interim results for the period ended 31 December 2014

Introduction 2

Introduction to Delta International  First African (excluding South Africa) focused property fund listed on the JSE  Offers investors exposure to USD yielding investment without the use of foreign exchange allowance  Primary listing on the Bermudan Stock Exchange with a secondary listing on the JSE AltX*  Two properties valued at US$150.4 million**  Market capitalisation – US$87.6 million  Management team with extensive Africa experience and relationships  In country asset and property management teams  Strong acquisition pipeline  Property portfolio (current and pipeline) underpinned by long term leases with strong counterparties *The Company is currently in the process of migrating its primary listing to the Stock Exchange of Mauritius (expected to be completed by mid February 2015) and intends to transfer from the JSE AltX to the JSE Main Board (expected to be completed early March 2015). ** At period ended 31 December 2014. The Hollard Building valued at US$14.5 million transferred on 23 January 2015 3

Corporate structure Freedom Asset Management Delta International Property Holdings Limited (Mauritius GBC1) Asset Managers (Mauritius GBC1) (BSX and JSE AltX listed) 100% DIF 1 Limited Delta International Mauritius Ltd 100% Operating Company Operating Company (Mauritius GBC1) (Mauritian company) 100% 100% 100% HM & K Properties Delta International SAL Investment Holdings Bahrain Limited Limited (Bahrain Company) (Mauritian company) (Mauritian company) 100% 95% 95% S&C Immobiliaria Freedom Property Fund 5% 3% Commotor Limitada SARL Limitada (Mozambican company) (Moroccan Company) (Mozambican company) Hollard Building Anfa Place Anadarko Building Shopping Centre Vodacom Building Maputo, Mozambique Casablanca, Morocco Maputo, Mozambique 4

Highlights 5

Highlights for the interim period under review  Maiden dividend – US$6.63 cents per share declared for the interim period ended 31 December 2014  Total investment property - US$150.4 million (Morocco: US$112.9 million and Mozambique: US$37.5 million)  Portfolio occupancy – 92.8% (Anadarko Building – 100% occupancy)  Market capitalisation – US$87.9 million  Hollard Building – transferred into fund on 23 January 2015  Vodacom Building – on track to transfer into the fund within current financial year strengthening the Mozambican property asset base  Access to a high quality acquisition pipeline 6

Shareholder profile – top 5 shareholders As at 31 December 2014 Units held Holding Delta Property Fund 22 814 372 51.09% Bowwood and Main No 117 5 746 061 12.87% RMB Securities 3 386 211 7.58% Eskom Pension and Provident Fund 1 253 090 2.81% Clucasgray Future Titans Prescient 797 088 1.78% Subtotal 33 996 822 76.13% Other 10 659 625 23.87% Total 44 656 447 100.00% 7

Financial review 8

Financial overview 31 December 2014 USD Distribution per linked unit 6.63 Cost to income ratio 24.4% Gearing level 49.48%* Net asset value per linked unit (excl deferred tax) 211.1 Weighted average rental/m² US$25.11 Average escalation 6.31% *includes debt on deposits paid in respect of the acquisition of the Vodacom and Hollard Buildings 9

Distributable income statement 31 December 2014 USD ’000 Net property income 5 166 Rental income 6 837 Property operating expenses (1 671) Other income 66 Administrative expenses (572) Net finance costs (1 683) Disposal of investment in subsidiary - Realised foreign currency gain 516 Retained profit not distributed - Taxation (530) Distributable income / (loss) for the period 2 963 Number of linked units in issue 44 656 447 Dividend per share (cents) 6.63 Cost to income % 24.4% 10

Consolidated property portfolio 11

Delta International at a glance 31 December 2014 US$87.9 million Market capitalisation 2 Number of properties Morocco and Mozambique Location of properties Pan Africa (excluding South Africa) Geographic spread US$150.4 million Valuation of the property portfolio 38 516m 2 Gross lettable area Retail: 72%; Office: 28% Sectoral profile (by revenue) 92.6% Occupancy rate US$25.11 Weighted average rental / m 2 6.31% Weighted average escalation Gearing levels c.49.48% loan to value Funding costs Average all-in rate of c.6.33% Reporting currency - US$ Currency Mozambique assets – US$ Moroccan asset – Moroccan Dirham 12

Anfa Place Shopping Centre Location: Casablanca, Morocco Anchor tenant: Label Vie (Carrefour) Purchase price: MAD 945 000 000 Acquisition yield: 7.54% GLA: 30 711m2 Parking bays: 1 148 Anchor lease term: 3 + 3 + 3 years June 2021 (lease can be cancelled Anchor tenant lease expiry: with 6 months notice at the end of each 3 year period) Weighted average escalation: 6.9% Vacancies: 9.33% US$28.25 (incl recoveries) Average rental: US$21.63 (excl recoveries) 13

Anadarko Building Location: Maputo, Mozambique Anchor tenant: Anadarko Petroleum Purchase price: US$ 32 500 000 Acquisition yield: 10.42% GLA: 7 805m2 Parking bays: 185 Anchor lease term: 15 years Anchor tenant lease expiry: May 2025 Weighted average escalation: 4.0% Vacancies: 0% US$43.72 (incl recoveries) Average rental: US$38.78 (excl recoveries) 14

Analysis of the property portfolio Sectoral profile - GLA Geographic profile - GLA 20% 20% 80% 80% Retail Office Casablanca, Morocco Maputo, Mozambique Sectoral profile – Gross rental Geographic profile – Gross rental 28% 28% 72% 72% Casablanca, Morocco Maputo, Mozambique Retail Office 15

Analysis of the property portfolio (cont.) Lease expiry profile – by GLA Weighted average rental escalation 100% Total 6.31% 80% 64.3% % of GLA 60% Office 4.00% 34.0% 40% 20% Retail 6.90% 1.7% 0.0% 0.0% 0.0% 0.0% 0% 2014 2015 2016 2017 2018 2019 2020+ 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Weighted average rental per m 2 (US$) Lease expiry profile – by rental income 97.4% 100% Total 25.56 80% % of rental income 60% Office 38.78 40% Retail 21.63 20% 2.4% 0.0% 0.0% 0.0% 0.2% 0.0% 0% 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 2014 2015 2016 2017 2018 2019 2020+ 16

Post review period acquisitions – Vodacom Building Location: Maputo, Mozambique Anchor tenant: Vodacom Group Limited Purchase price: US$ 49 000 000 Acquisition yield: 6.97% GLA: 10 659m2 Parking bays: 336 10 + 10 years fully Lease term: maintaining lease April 2019 (initial 10 year Anchor tenant lease expiry: period expiry) Weighted average escalation: 5% Vacancies: 0% US$27.89 (incl recoveries) Average rental: US$27.83 (excl recoveries) 17

Post review period acquisitions – Hollard Building Location: Maputo, Mozambique Anchor tenant: KPMG, BP, Hollard Insurance Purchase price: US$ 14 050 000 Acquisition yield: 10.43% GLA: 4 945m2 Parking bays: 98 KPMG: 10 years Anchor lease term: BP: 5 years Hollard: 10 years KPMG: February 2018 Anchor tenant lease expiry: BP: February 2018 Hollard: February 2023 Weighted average escalation: 4.1% Vacancies: 0% US$27.43 (incl recoveries) Average rental: US$24.17 (excl recoveries) 18

Challenges and prospects 19

Prospects  To ensure the sustainability of the current property portfolio  Complete the acquisition of the Hollard and Vodacom Buildings respectively within the current financial reporting period  Extend its property base in Mozambique through the pre-commitment of the phase 2 development of the Anadarko Building  Continue to build on a strong acquisition pipeline and the Fund’s investment strategy 20

Thank you