Interim results for the six months ended 31 August 2015 P R O P E R T Y F U N D
1 Presentation outline 1. Overview — Jackie van Niekerk 2. Investment and portfolio overview — Jackie van Niekerk 3. Financial overview — Aaron Suckerman 4. Looking ahead — Aaron Suckerman
2 Overview 1 Jackie van Niekerk Loftus Park
3 Highlights ’15 Net asset value excluding deferred tax per Prime developments construction commenced at share increased year-on-year by Loftus Park, Kyalami Corner 26% to R19.60 and Wonderboom Junction redevelopment and expansion Concluded the first acquisition in Nigeria, with Reduced weighted average cost of debt to Pivotal’s share of asset value on completion of 9.34% USD104 million (Aug 2014: 9.85%) Acquired additional development pipeline of 275 000m² taking total pipeline to 608 000m²
4 NAV growth Growth in NAV from Feb 2011 to Aug 2015 18.40 19.60 CAGR 1 24.02% 15.55 14.69 10.14 8.56 7 .44 Feb ’11 Feb ’12 Feb ’13 Feb ’14 Aug ’14 Feb ’15 Aug ’15 Note 1: Compound annual growth rate 28 February 2011 to 31 August 2015 Full year Half year
5 Key focus areas for ’15 Objectives Actions 1. Secure long-term development pipeline 1. Development opportunity secured to to sustain growth and diversity. increase the bulk to 608 000m2 and industrial sector exposure expanded. 2. Conversion of secured development 2. Prime developments construction to current development. commenced at Loftus Park, Kyalami Corner and Wonderboom Junction redevelopment and expansion. 3. Maintain portfolio quality. 3. R61 million spent on capex and upgrades. 4. Increase exposure to the rest of Africa. 4. Concluded the fjrst transaction and well established pipeline secured. 5. Further develop as an offshore 5. Strategic investment into Australia investment strategy. in planning.
6 Investment and portfolio overview 2 Jackie van Niekerk Cradlestone Mall
7 Pivotal at R10.8bn a glance South Africa Africa 94% 6% R10.2bn R0.6bn Income producing Development pipeline R8.6bn R1.6bn R10.8bn Retail Current develop ment Mara Africa R3.8bn R0.8bn R2.8bn R0.6bn R1.3bn 226 830m2 145 491m 2 27 000m 2 Offjce Future secured development R4.7bn R0.8bn R8.0bn 192 889m2 608 000m2 Industrial R0.1bn 19 210m2
8 Investments 2.1 Bryanston Place
9 African investment strategy Invest into a fund to become a major property owner on the African continent, outside of South Africa. Focusing on income-producing assets and strong development pipeline with solid counterparties to ensure consistent growth of value and risk mitigation. 1. Fund listed on SEM and JSE Mara 2. Total fund size c. USD600m Africa (including secured deals) estimated 35% 3. Joint ventures with strategic shareholding in-country partners 4. Strong management team Pivotal 5. Tax effjcient structure
10 Pivotal in Africa Risks Opportunities 1. Political change 1. High economic growth coming and uncertainty off a low base 2. Depressed oil price 2. Untapped markets 3. Lengthy construction periods 3. Pivotal balance sheet and delays not encumbered with the African exposure 4. Local currency risk 4. Need for good quality development
11 Australia investment strategy Solid property fundamentals 1. Positive gearing with stable low interest rates 2. ZAR vs AUD relatively stable 3. Strong local partners with a well-established track record 4. Focus on strong development pipeline 5. Well-established income-producing portfolio Portfolio under investigation: 6. Quality A-grade tenants Diversified across all sectors Low vacancy levels — below 2% Long WALE Attractive yields
12 Developments 2.2 Alice Lane
13 Development pipeline rollout 4 GAUTENG 1 pretoria SECTOR BULK NO. OF 7 1 PROPERTIES 1 Offjce 127 787m2 11 Retail 58 434m2 3 JOHANNESBURG Industrial 421 286m2 2 TOTAL 607 507m2 16 1 CAPE TOWN Refer to Annexure 2 on page 46 for further information
14 Summary of current developments Retail Offjce Africa Total Number of properties 3 8 1 12 GRA (m²) 59 382 86 109 27 000 172 491 Total capital cost (Rm) 1 026 2 252 2 276 5 554 Total value on completion (Rm) 1 047 2 570 3 727 7 344 Pivotal value on completion (Rm) 932 1 872 1 384 4 188 * USD1 to ZAR13.31 at 31 Aug 2015 Loftus Park
15 Kyalami Corner Precinct Retail Mixed use GRA: 29 160m 2 GRA: 41 171m 2 Pivotal shareholding: 80% Pivotal shareholding: 80% Estimated completion date: Estimated completion date: 2017 2019 Total value on completion: Total value on completion: R576m R600m Kyalami, Gauteng
16 Loftus Park GRA: 53 994m 2 Pivotal shareholding: 50% Estimated completion date of phase 1: Total value on completion: 2017 R1.5bn Arcadia, Pretoria, Gauteng
17 Wonderboom Junction GRA: 60 739m 2 Redevelopment and expansion Pivotal shareholding: 100% Estimated completion date: Total value on completion: 2017 R1.4bn Annlin West, Pretoria, Gauteng R 1 0 1 LAVENDER ROAD BRAAM PRETORIUS STREET D A O R R E D N E V A L
18 S&J Industrial* GRA: 800 460m 2 Pivotal shareholding: 45% Estimated completion date: Total value on completion: 2018 R1.9bn Germiston, Gauteng * Industrial land, refmected at serviced land value
19 Portfolio 2.3 Chilli Lane
20 Portfolio overview Portfolio management Market trends 1. Implemented a real time reporting system 1. Incentivised deal structures improving the reporting effjciencies 2. Over and Above Service Hub introduced 2. Increasing demand for parking bays to the offjce parks 3. Generator installation in all malls — 3. Tenants’ rental market 100% of the portfolio is equipped with backup generators 4. Electricity recovery — PV installation 4. Consolidation of offjce space to be implemented in next year 5. Retailers taking smaller space
21 Income-producing overview Retail Offjce Industrial Total 1. Number of properties 10 23 3 36 2. Property portfolio value 3 768 4 668 145 8 597 3. Total GRA built (m2) 226 830 192 889 19 210 438 928 4. GRA as % of the portfolio 52 44 4 100 5. Value per m2 16 609 24 209 7 553 19 553 6. Vacancy (%) 2 3 — 2 7. Average net rental/m2 (R) 117 131 53 120
Retail portfolio summary 1 813 Centurion 7% Lifestyle Centre 3 404 Chilli 1 1% Lane 1 400 Cradlestone 19% Mall (40%) 2 707 Gateway 3% Retail Trust 2 284 Goldfjelds 0% Mall 3 116 Hazeldean 30% (Turnover/GRA) Trading density Square 4 452 Hillcrest -4% Boulevard 3 829 in turnover Annual growth The Square 5% at Farrarmere 1 587 Wonderboom 1% Junction 22
23 Geographical profile Gauteng Western Cape Free State 87 4 9 % GRA 87 4 9 % Gross rentals
24 Tenant grading Total portfolio 83% 13% 4% GRA GRA C Income B GRA 5% Income 15% A Income 80%
25 Tenant grading Retail tenants A B C 82 12 6 % GRA 74 17 9 % Income Offjce tenants A B C 85 14 1 % GRA 87 12 1 % Income
26 Vacancy Vacancy % Offjce exposure Total GRA Vacancy % of GRA vacant per location exposure m2 % Sector Aug 2015 Aug 2014 Johannesburg 62.4% 2 Retail 1.8 2.4 Bryanston 21.6% 5 Constantia Kloof 12.7% 3 Offjce 2.8 2.0 Portfolio 2.2 2.2 Hyde Park 7.0% 8 Illovo — — Midrand — — Modderfontein 12.0% — Sandton 9.2% 1 Pretoria 34.6% 5 Centurion — — Hatfjeld — — Pretoria 34.6% 10 Cape Town 3.0% 1 CBD 3.0% 2 Tygervalley — — Total value 100% 3
27 Vacancy and leasing Tenant retention (% of GRA) Retail < 20 000m 2 96 Retail > 20 000m 2 100 Offjce 64 Total 71
28 Lease expiry profile per financial year-end GRA % Retail Offjce Industrial 100% 54% 50% 22% 17% 14% 11% 10% 9% 8% 5% ’16 ’17 ’18 ’19 ’20 and beyond
29 Financial overview 3 Aaron Suckerman Hertford Offjce Park
30 Financial highlights ’15 Aug ’15 Feb ’15 % change NAV (R’000) 5 177 706 4 849 503 7 NAVPS (excl. deferred tax) (R) 19.60 18.40 7 Investment property (R’000) 8 597 402 8 349 696 3 Investment property under construction (R’000) 1 596 027 907 963 76 Average property value per m 2 19 553 19 372 1 Weighted average cap rate (%) 7.7 7.7 — Interest-bearing liabilities (R’000) 5 833 336 4 498 322 30 Gearing (net of cash) (%) 52 46 13 Funding headroom to 55% LTV (R’000) 343 563 593 390 (37) Shares in issue 299 741 163 298 924 167 —
31 Net asset value per share movement (R) 1.63 0.13 (27.57) 1.37 2.17 26.32 19.60 15.55 1 2 3 4 5 6 7 8 1 NAVPS — Aug 2014 4 Revaluations — properties 7 Dilution arising from additional under development shares in issue 2 Business combinations and capital raised 5 Statutory profit excluding 8 NAVPS — Aug 2015 revaluations and forex gains 3 Revaluations — investment properties 6 Mark-to-market swaps and forex gains
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