EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 1 AGENDA GEOFF JENNETT GREG BOOYENS ULANA VAN BILJON GEOFF JENNETT OVERVIEW FINANCIALS PORTFOLIO INVESTMENTS › Capex and › Key metrics › Distribution › Direct SA portfolio disposals statement performance › 5-year track › Residential record › Balance sheet › Enyuka › Funding › Rebalancing OUTLOOK › Offshore › Summary
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 3 KEY METRICS AT DECEMBER 2017 DISTRIBUTIONS NAV TENANT PER SHARE PER SHARE VACANCIES RETENTION 70.65c 1761c 4.5% 77% CAPEX ACQUISITIONS DISPOSALS PROJECTS LTV USD8.4m R236.5m R357m 37.2%
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 4 5-YEAR TRACK RECORD 2 000 72 1 800 70 1 801 1 600 68 1 759 1 761 1 732 1 650 1 400 66 1 621 1 430 1 429 1 200 64 1 358 1 346 1 000 62 800 60 600 58 400 56 200 54 - 52 DEC 13 DEC 14 DEC 15 DEC 16 DEC 17 SHARE PRICE NAV (LHS) DISTRIBUTION (RHS) 6 MONTHS COMPOUND ANNUAL 12-MONTH TOTAL 12-MONTH GROWTH RATE IN NAV OF SHARE PRICE RETURN OF 6.7% p.a. -5.8% +4.4%
EMIRA PROPERTY FUND
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 6 ENYUKA Deconsolidation Equity Comparatives accounted reclassified
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 7 DISTRIBUTION STATEMENT R’000 DEC 16 DEC 17 % CH Revenue 844 242 840 678 (0.4) Property expenses (325 657) (303 743) (6.7) Net direct property income 518 585 536 935 3.5 Net property expenses to revenue ratio (%) 38.6 36.1 Gross property expenses to revenue ratio (%) 20.4 17.1 Admin expenses (46 827) (46 912) 0.2 Net operating income 471 758 490 023 3.9 Disposals, vacancy Worley Parsons Disposals, new Rent collection fees, take up, contractual lease commissions staff costs escalations
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 8 DISTRIBUTION STATEMENT continued R’000 DEC 16 DEC 17 % CH Net operating income b/f 471 758 490 023 3.9 Income from investments Enyuka 34 140 35 985 5.4 Growthpoint Australia (GOZ) 29 216 29 491 0.9 USA – 2 740 >100.0 Net interest cost (193 810) (188 975) (2.5) Other income 10 618 – <(100.0) Distribution payable 351 922 369 264 4.9 Number of shares issue 510 550 084 522 667 247 2.4 Dividend per share (cents) 68.93 70.65 2.5 Enyuka equity GOZ DPS First USA Lower avg Treasury BEE shares accounted, growth, acquisition, debt levels, shares issued June contractual stronger income hedges vendor loan cancelled 2017 escalations, R/AUD implemented interest income, acquisitions CCIRS
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 9 BALANCE SHEET R’000 DEC 16 DEC 17 % CH Investment properties 12 671 12 727 0.4 Investments Enyuka 585 614 5.0 GOZ 924 941 1.8 USA – 100 >100.0 Other assets 384 531 38.3 Total assets 14 564 14 913 2.4 Interest-bearing debt 5 378 5 476 1.8 Other liabilities 454 453 (0.3) Shareholder equity 8 732 8 984 2.9 Total equity and liabilities 14 564 14 913 2.4 Revaluation, Enyuka GOZ USA Derivative LTV = 37.2% developments, contracts, › Equity › Price › Equity disposals loans receivable accounted, appreciation, accounted, acquisition, stronger rand stronger rand R1.1bn held revaluation for sale
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 10 NET ASSET VALUE PER SHARE 1 800 9 1 761 12 18 1 750 (4) 1 735 (7) (2) 71 1 700 1 690 74 1 650 1 661 1 600 Jun 17 Change in # of Revaluation of Revaluation of Foreign exchange Revaluation of Change in Dec 17 shares properties GOZ derivatives dividend payable 1.5% increase in NAV per share
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 11 DEBT FUNDING MIX 700 FACILITY CAPITAL BALANCE CAPITAL AVAILABLE 600 500 400 Rm 300 200 100 - Feb Mar Mar Mar May May May May Aug Aug Sep Sep Nov Mar Mar Jun Sep Sep Sep Nov Nov Jun Sep Nov May Sep 18 18 18 18 18 18 18 18 18 18 18 18 18 19 19 19 19 19 19 19 19 20 20 20 21 22 R1.2bn of rollovers and R2.5bn debt maturing next R685m of undrawn, new loans concluded to 12 months backup facilities Dec 2017 Diversified sources of funding, unencumbered assets
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 12 INTEREST RATE SWAP PROFILE 1 200 1 000 800 Rm 600 400 200 - JUN 18 DEC 18 JUN 19 DEC 19 JUN 20 DEC 20 JUN 21 DEC 21 JUN 22 DEC 22 JUN 23 JUN 24 DEC 24 Hedged Weighted average Weighted average debt duration to expiry all in interest rate 87% 3.2 years 8.0%
EMIRA PROPERTY FUND
EMIRA PROPERTY FUND EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 14 PROPERTY PORTFOLIO SUMMARY NUMBER OF PROPERTIES 180 164 150 148 146 146 120 142 141 111 60 0 DEC 10 DEC 11 DEC 12 DEC 13 DEC 14 DEC 15 DEC 16 DEC 17 NUMBER OF PROPERTIES PER SECTOR – 2016 VS 2017 60 80 46 44 43 60 23 22 40 15 0 20 0 OFFICE RURAL RETAIL URBAN RETAIL INDUSTRIAL (ENYUKA) DEC 16 DEC 17
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 15 PROPERTY PORTFOLIO SUMMARY: SECTORAL SPLIT 44% 45% OFFICE 2016 VALUE SPLIT 2017 VALUE SPLIT 40% 41% PER SECTOR (%) PER SECTOR (%) URBAN RETAIL R12.6bn R12.6bn INDUSTRIAL 15% 15% 32% 36% 31% 33% 2016 GLA SPLIT OFFICE 2017 GLA SPLIT PER SECTOR (%) PER SECTOR (%) URBAN RETAIL 1.1m m 2 1.0m m 2 INDUSTRIAL 35% 33%
EMIRA PROPERTY FUND EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 16 PROPERTY PORTFOLIO SUMMARY +7% AVERAGE VALUE PER m² 20 000 16 541 15 801 14 910 14 547 15 000 12 370 11 586 R/m 2 10 000 5 362 5 255 5 000 0 OFFICE URBAN RETAIL INDUSTRIAL TOTAL DEC 16 DEC 17 AVERAGE VALUE PER PROPERTY 250 +24% +13% 200 235 218 150 Rm 100 113 119 100 96 50 43 45 0 OFFICE URBAN RETAIL INDUSTRIAL TOTAL DEC 16 DEC 17
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 17 OFFICE SECTOR EXPOSURE AVERAGE VALUE 73 2011 NUMBER OF 46 R52m R119m PER PROPERTY PROPERTIES 2017 (Rm) 2% 20% 35% P-GRADE 37% GRADE OF OFFICE GRADE OF OFFICE A-GRADE PORTFOLIO (%) PORTFOLIO (%) B-GRADE 2011 2017 61% C-GRADE 45%
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 18 VACANCY PROFILE BY GLA (%) 18% 16.1% 16% 14% 12% 9.4% 9.3% 10% 7.0% 8% 4.7% 4.5% 6% 3.4% 3.1% 4% 2.2% 2.1% 1.7% 1.2% 2% 0% OFFICE URBAN RETAIL INDUSTRIAL TOTAL DEC 15 DEC 16 DEC 17 Largest vacancies Office Contributors Urban retail Industrial vacancies vacancies vacancies Corobay Corner 1 Kikuyu decreased (6 330m², 46%) decreased increased (7 383m²) to 9.4% to 2.2% to 2.1% Knightsbridge Corobay (SAPOA 11.2%) (3 877m², 31%) (SAPOA 4.2%) (SAPOA 3.5%) (5 510m²) Menlyn Square Iustitia (2 215m², 23%) (5 141m²)
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 19 TENANT RETENTION (%) 100% 83% 83% 80% 82% 82% 77% 75% 73% 72% 71% 70% 60% 66% 40% 20% 0% m² NO. OF LEASES GROSS RENTALS DEC 15 DEC 16 DEC 17 Expiries of 126 254m² equals 285 leases or R14.8m gross rentals per month
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 20 10 MAJOR LEASE EXPIRIES BY GROSS RENTAL: 1H18 PROPERTY TENANT LEASE END GLA (m²) STATUS 12 Baker Street / Vacated Sasol Aug 17 10 239 2 Sturdee Avenue (Residential conversion) Tuinhof Trans Caledon Tunnel Dec 17 3 757 Renewed – 1 year RTT Continental RTT Group Dec 17 12 921 Renewed – 3 years Podium at Menlyn SA Forestry Sep 17 2 419 Renewed – 3 years Cambridge Park Itec Dec 17 5 617 Renewed – 3 years Waterside Place Aecom Jul 17 2 315 Renewed – 5 years Wonderpark Cashbuild Nov 17 2 227 Renewed – 7 months Provident Society Boundary Terraces Dec 17 1 866 Renewed – 1 year Investments Lincolnwood Renewed – 3 years Altech Sep 17 2 329 Office Park and 9 months Cambridge Park Netflorist Oct 17 3 423 Renewed – 1 year 47 114 (71% renewed – calculated on gross rental) (100% excluding Sasol)
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 21 LEASE EXPIRY PROFILE BY GLA (%) 50% 47.8 45% 42.9 40% 37.4 35% 30% 23.9 25% 22.4 20.8 19.6 20% 15.4 15.3 14.3 15% 10.7 9.3 10% 7.1 4.9 4.5 5% 1.5 0.6 0.7 0.4 0.3 0.2 0% VACANCY VACATED DEC EXPIRIES ROLLED YEAR 1 YEAR 2 YEAR 3 YEAR 4+ (31/12/17) (31/12/17) OVER (2H18) (FY19) (FY20) (FY21+) DEC 15 DEC 16 DEC 17
EMIRA PROPERTY FUND RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017 22 REVERSIONS – TOTAL (GROSS RENTALS) AVG. AVG. NEW INCREASE/ SECTOR AREA EXPIRY RENTAL LEASE RENTAL (DECREASE) % Office 41 609 136.38 129.48 -5.1 Urban retail 32 826 161.21 159.88 -0.8 Industrial 64 127 53.79 53.16 -1.2 Total Dec 17 138 562 104.35 101.36 -2.9 145 096 82.56 80.16 -2.9 Total Dec 16 141 128 105.73 105.64 -0.1 Total Dec 15
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