INTERIM RESULTS
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2014
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014
Movement 28 Feb 2014 28 Feb 2013
Distribution 9.0% 48,5 cpu 44,5 cpu
Mar...
COMPANY PROFILE AND HISTORY
3
28 Harrison Street, Jhb
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014
900
950
1000
1050
1100
1150
1200
1250
1300
1350
1400
1450
May
2011
June ...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Major Beneficial Shareholders
5
Source: Vaco
* Vendors of Nthwese portfol...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Major Fund Managers
6
Source: Vaco
2%
3%
3%
3%
3%
4%
6%
8%
15%
17%
36%
0%...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Distribution Growth History
7
Interim Full year
22.25
43.00
85.50
44.50
9...
FINANCIAL REVIEW
8
Hemingways Mall,
East London
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Distributable Income Statement
9
For 6 months ended
28 Feb 2014
R’000
For...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Balance Sheet Extract
As at
28 Feb 2014
R’000
As at
28 Feb 2013
R’000
Ass...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Borrowings
As at
28 Feb 2014
R’000
As at
28 Feb 2013
R’000
Secured borrow...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Debt Expiry Profile
12
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
...
PROPERTY PORTFOLIO
13
Victoria Mxenge, Pta
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Property Portfolio
Retail Office Industrial Total
Number of properties 4 ...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014
Property Location
GLA
m²
Valuation
R’000
Cap
Rate
%
Net Income Contribut...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Income Spread of Top 10
16
22%
9%
8%
7% 7% 7% 7%
5%
4% 4%
20%
19%
8%
6%
8...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014
BY VALUE BY GLA
BY NET
PROPERTY INCOME
Sectoral Spread
17
41%
59%
By GLA...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014
36%
58%
3% 3%
32%
59%
6%
3%
Eastern Cape Gauteng KwaZulu Natal North Wes...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Letting Activity*
19
Retail Office/Industrial Portfolio
GLA
m²
Vacancy
m²...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Overall Lease Expiry Profile (by GLA)*
20
* Per 12 months ended 28 Februa...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Retail Lease Expiry Profile (by GLA)*
21
* Per 12 months ended 28 Februar...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Retail Environment
22
The risks
• Sluggish retail sales growth on the bac...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Retail Portfolio Performance
23
Annualised for 12 months ended 28 Februar...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Trading Densities
24
23,100
21,168
27,240
29,985
24,542 23,923
29,984
32,...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Rent to Sales
25
%
9.8
6.5
6.9
0
8.3
5.6
6.4
7.2
0
2
4
6
8
10
12
Hemingwa...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Corporate Office Sector
26
The risks
• Corporate failures and liquidation...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Government Office Sector
27
The risks
• Late rental payments
• Treasury d...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Industrial and Office Performance
Occupancy levels
%
Weighted average
gro...
FUND MANAGEMENT
29
Sunnypark Mall, Pta
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Acquisition of Ascension Manco
30
Strategic acquisition of 100% of Ascens...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014
PROSPECTS
31
Hemingways Mall,
East London
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Rebosis Investment Case
32
Sector downside risk
Property fundamentals
• T...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Rebosis Investment Case
33
Sector upside potential
Better than expected d...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Corporate Activity
34
Proposed Ascension / Delta / Rebosis merger
• Incre...
INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Prospects
35
● Well positioned to achieve solid growth through quality po...
QUESTIONS & ANSWERS
36
Upcoming SlideShare
Loading in...5
×

Rebosis Property Fund HY 2014 financial results presentations

200

Published on

Rebosis Property Fund listed on the Johannesburg Stock Exchange has released their Full Year Presentation. Check out insights into this company through their presentation which appears below. Sign up to www.theinvestormailinglist.com to receive earnings presentations for all listed companies in Africa.

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
200
On Slideshare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Rebosis Property Fund HY 2014 financial results presentations

  1. 1. INTERIM RESULTS FOR THE SIX MONTHS ENDED 28 FEBRUARY 2014
  2. 2. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014 Movement 28 Feb 2014 28 Feb 2013 Distribution 9.0% 48,5 cpu 44,5 cpu Market capitalisation 18.1% R4,263 bn R3,609 bn Assets under management (R’000) 51.0% 7 009 941 4 637 000 Net property income (R’000) 42.9% 264 560 185 152 Occupancy - 98.0% 98.0% Cost to income ratio 80 bps 13.6% 12.8% Gearing 127 bps 35.3% 22.6% Income from other assets (R’000) 100% 3 274 * - Key Highlights * To transfer after reporting period 2
  3. 3. COMPANY PROFILE AND HISTORY 3 28 Harrison Street, Jhb
  4. 4. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014 900 950 1000 1050 1100 1150 1200 1250 1300 1350 1400 1450 May 2011 June Jul Aug Sep Oct Nov Dec Jan 2012 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2013 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2014 Feb Rebosis History 4 Source: I-net, Billion Group Transfer of Sunnypark Mall R587m Vendor placement R295.5m Transfer of Nthwese Portfolio R1.06 bn Transfer of Bloed Street Mall Nov 2011 R356m Acquisition of 4 office properties ±R523m Rights offer R650m Acquisition of Antalis R120m R150m Ascension MANCO acquisition Acquired Ascension B units R289m Listed on 17 May 2011 with 7 properties at R3.3bn Bookbuild of R495m cpu
  5. 5. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Major Beneficial Shareholders 5 Source: Vaco * Vendors of Nthwese portfolio 3% 3% 4% 4% 5% 6% 6% 9% 10% 17% 33% 0% 5% 10% 15% 20% 25% 30% 35% 40% Coronation Fund Managers Investment Solutions Old Mutual Eskom Pension & Provident Fund Investec Dreamfair Properties 26 (Pty) Ltd * Sanlam Ngebulana, SM STANLIB Government Employees Pension Fund Other
  6. 6. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Major Fund Managers 6 Source: Vaco 2% 3% 3% 3% 3% 4% 6% 8% 15% 17% 36% 0% 10% 20% 30% 40% Meago Eskom Pension & Provident Fund - IMU Catalyst Fund Managers Prudential Portfolio Managers Coronation Fund Managers Old Mutual Investment Group Sanlam Investment Management Investec Asset Management STANLIB Asset Management Public Investment Corporation Other
  7. 7. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Distribution Growth History 7 Interim Full year 22.25 43.00 85.50 44.50 92.00 48.50 0 20 40 60 80 100 FY11* 1H12 FY12 1H13 FY13 1H14 cpu 3.5% 9.0% 7.6% * 3.5 months
  8. 8. FINANCIAL REVIEW 8 Hemingways Mall, East London
  9. 9. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Distributable Income Statement 9 For 6 months ended 28 Feb 2014 R’000 For 6 months ended 28 Feb 2013 R’000 Net property income 264 560 185 314 Rental income 362 452 248 274 Operating costs (98 892) (62 960) Net income from facilities management 8 549 8 215 Income from Ascension acquisition 3 274 - Listed properties securities income 1 907* - Asset management fees received 1 367* - Administration costs (13 825) (9 857) Net finance costs (75 091) (46 960) Distributable earnings 187 467 136 712 Number of linked units 386 531 577 307 183 417 Distribution per linked unit (cents) 48.50 44.50 Distribution growth 9.0% 3.5% * With effect from 4 Feb 2014
  10. 10. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Balance Sheet Extract As at 28 Feb 2014 R’000 As at 28 Feb 2013 R’000 Assets under management 7 009 941 4 637 000 Investment property 6 592 000 4 637 000 Listed property securities (109 363 661 AIB units) 267 941 Right to manage - Ascension 150 000 Interest bearing borrowings 2 474 703 1 048 174 Net asset value 11.62 11.44 10 94% 4% 2% Investment property Listed property securities Right to manage - Ascension Manco
  11. 11. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Borrowings As at 28 Feb 2014 R’000 As at 28 Feb 2013 R’000 Secured borrowings 2 474 703 1 048 174 Facilities 2 555 985 1 790 000 Average interest rate 8.0% 8.5% Gearing ratio 35.3% 22.6% Debt at fixed rates 75.0% 77.5% Average term of debt 2.7 years 2.2 years 11
  12. 12. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Debt Expiry Profile 12 - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 2015 2016 2017 2018 > 2019 Total Facility utilised Facility available R’000 * Based on financial year end Expiry *
  13. 13. PROPERTY PORTFOLIO 13 Victoria Mxenge, Pta
  14. 14. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Property Portfolio Retail Office Industrial Total Number of properties 4 14 1 19 Portfolio valuation (R’000) 2 954 000 3 506 000 132 000 6 592 000 Gross lettable area (m²) 164 041 231 403 18 954 414 398 Value per m² (R) 18 008 15 151 6 964 15 907 Vacancy (%) 2.9 1.4 0 2.0 Average monthly gross rental per m² 131.20 107.70 59.25 117.24 Average escalation (%) 6.3 8.2 7.0 7.5 Weighted average lease period (years) 3.8 4.7 5.8 4.3 Net cost to income ratio (%) 15.8 12.4 2.8 13.6 14
  15. 15. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014 Property Location GLA m² Valuation R’000 Cap Rate % Net Income Contribution Hemingways Mall East London 74 668 1 559 000 7.00 Sunnypark Mall Pretoria 27 697 589 000 7.50 SALU Building Pretoria 30 354 548 000 9.00 Liberty Building Pretoria 33 885 517 000 9.00 Victoria Mxenge Pretoria 24,720 435 000 8.75 124 Main Street Jhb 20 818 420 000 9.75 Bloed Street Mall Pretoria 25 675 416 000 8.50 Mdantsane City East London 36 001 390 000 8.50 189 Schoeman St Pretoria 19 332 285 000 9.75 28 Harrison St Jhb 20 984 237 000 9.25 4% 5% 6% 6% 7% 9% 8% 8% 8% 19% Top 10 Properties • Top 10 properties by value account for 82% of portfolio • 55% of Top 10 by value comprises retail valued at R18,008/m² • 45% of Top 10 by value comprises high quality offices valued at R16,300/m² 15
  16. 16. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Income Spread of Top 10 16 22% 9% 8% 7% 7% 7% 7% 5% 4% 4% 20% 19% 8% 6% 8% 7% 8% 6% 4% 9% 5% 20% 0% 5% 10% 15% 20% 25% Hemingways Mall Sunnypark Mall Mdantsane City SALU Building 124 Main St Liberty Building Bloed St Mall 28 Harrison St Victoria Mxenge 189 Schoeman St Other Rental income Net income
  17. 17. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014 BY VALUE BY GLA BY NET PROPERTY INCOME Sectoral Spread 17 41% 59% By GLA Retail Office 47% 53% 46% 54%
  18. 18. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014 36% 58% 3% 3% 32% 59% 6% 3% Eastern Cape Gauteng KwaZulu Natal North West BY VALUE BY GLA BY NET PROPERTY INCOME Geographic Spread 18 31% 60% 5% 4%
  19. 19. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Letting Activity* 19 Retail Office/Industrial Portfolio GLA m² Vacancy m² Vacancy % GLA m² Vacancy m² Vacancy % GLA m² Vacancy m² Vacancy % Balance at 1 September 2013 164 126 5 752 3.5% 182 406 831 0.5% 346 532 6 583 1.9% Acquisitions 67 951 67 951 - Lease expiries during the period 8 361 3 300 11 661 Lease renewals (7 991) (7 991) New lettings of vacant space (2 169) (831) (3 000) Leases terminated 462 462 GLA adjustments (85) 378 (85) 378 Balance at 28 February 2014 164 041 4 793 2.9% 250 357 3 300 1.3% 414 398 8 093 2.0% * GLA recon as at 28 February 2014
  20. 20. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Overall Lease Expiry Profile (by GLA)* 20 * Per 12 months ended 28 February 20% 6% 12% 6% 56% 3% 3% 13% 54% 28% 0% 0% 0% 0% 100% 11% 4% 12% 28% 45% 0% 20% 40% 60% 80% 100% 28 Feb 2015 28 Feb 2016 28 Feb 2017 28 Feb 2018 Beyond Retail Office Industrial Total portfolio
  21. 21. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Retail Lease Expiry Profile (by GLA)* 21 * Per 12 months ended 28 February 29% 4% 6% 8% 53% 12% 5% 19% 3% 61% 15% 4% 13% 3% 64% 12% 17% 14% 7% 50% 0% 10% 20% 30% 40% 50% 60% 70% 28 Feb 2015 28 Feb 2016 28 Feb 2017 28 Feb 2018 Beyond Hemingways Mall Mdantsane City Bloed Street Mall Sunnypark Mall
  22. 22. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Retail Environment 22 The risks • Sluggish retail sales growth on the back of muted consumer spending • Further deterioration of household debt to disposable income ratios • Rising occupancy costs and increasing rental arrears Opportunities • Dominant and large retail centres to remain defensive, despite tougher environment • Regionals and super regionals sales growth to remain stable • Rural and non-metro retail underpinned by national tenants will be more resilient “Recent (listed property) results confirm once again that prime retail, specifically dominant regional malls, outperform other commercial property. And the outperformance happens in both up and down cycles” - Leon Allison (Macquarie), Business Day 13 March 2014
  23. 23. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Retail Portfolio Performance 23 Annualised for 12 months ended 28 February 2014 * No footcount metres at Bloed Street Mall Despite constrained consumers, our retail centres continue to show solid growth Year Trading densities R/m² Rent/ Sales % Turnover growth % Spend per head R Hemingways Mall 2014 24 542 8.3 10.5 152 2013 23 100 9.8 8.4 139 Mdantsane City 2014 23 923 5.6 6.1 68 2013 21 168 6.5 12.0 64 Bloed Street Mall 2014 29 984 6.4 -0.9 * 2013 27 240 6.9 11.5 * Sunnypark Mall 2014 32 931 7.2 4.0 46 2013 29 985 ** 9.0 48 ** Property transferred June 2013
  24. 24. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Trading Densities 24 23,100 21,168 27,240 29,985 24,542 23,923 29,984 32,931 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Hemingways Mall Mdantsane City Bloed Street Mall Sunnypark Mall 1H 2013 1H 2014 R/m² 6.2% 13.0% 10.1% 9.8%
  25. 25. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Rent to Sales 25 % 9.8 6.5 6.9 0 8.3 5.6 6.4 7.2 0 2 4 6 8 10 12 Hemingways Mall Mdantsane City Bloed Street Mall Sunnypark Mall 1H 2013 1H 2014 * 15.3% 13.9% 7.3% • Shopping Centre rentals looking more affordable; stable tenant performance • Portfolio rent to sales ratio continues to reflect sustainability of rentals at respective escalation rates * Property transferred June 2013
  26. 26. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Corporate Office Sector 26 The risks • Corporate failures and liquidations to remain high • Vacancies likely to rise on new supply • Subdued rental growth expected as landlords fight for tenant retention Opportunities • Prime space at low rentals for tenants • Potential bargain acquisitions for buyers with cash
  27. 27. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Government Office Sector 27 The risks • Late rental payments • Treasury directive on lease renewals and new leases: 5.5% pa escalation and max 3 years lease term • Increase in administrative costs, rates and taxes Opportunities • Limited tenant failures and strong tenant retention • Acquiring government tenanted buildings from sellers that battle to renew leases • Existing or acquisition of long term leased buildings
  28. 28. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Industrial and Office Performance Occupancy levels % Weighted average gross rentals R/m² Escalation % Antalis (Industrial) 100% 59.25 7.0% Office 98.6% 107.70 8.2% Stable income underpinned by SOLID tenants 28
  29. 29. FUND MANAGEMENT 29 Sunnypark Mall, Pta
  30. 30. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Acquisition of Ascension Manco 30 Strategic acquisition of 100% of Ascension Manco for R150 million • Right to manage Ascension Property Fund assets until June 2022 • Impact to Rebosis unitholders R’000 Asset management fee income 16 400 Manco costs (4 400) Net income before funding 12 000 Funding costs (10 763) Forecast net income 1 237
  31. 31. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014 PROSPECTS 31 Hemingways Mall, East London
  32. 32. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Rebosis Investment Case 32 Sector downside risk Property fundamentals • Tenants face higher occupancy costs (retail, office, industrial) • Office sector vacancies to remain high on new supply • Rental growth at flat to negative rates on renewals and new leases Implementation of treasury directive on DPW lease renewals Unhedged balance sheets vulnerable to interest rate hikes Rebosis downside risk Impact of rising interest rates on unhedged debt portion “Mom & Pop” and furniture retailers face a lot more headwinds than some national tenants Rising occupancy costs and ability to negotiate higher rentals on renewals or new leases
  33. 33. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Rebosis Investment Case 33 Sector upside potential Better than expected distribution growth Consolidation of smaller – medium sized REITs; increase in sector liquidity “The growth rush to Africa”.... Rebosis upside potential Relatively high hedge ratio – resilience to tightening interest rates Dominant retail centres underpins high occupancy levels and solid growth Strong tenant retention on renewals and above budget renewal rates Long term sovereign leases mitigate commercial sector risks
  34. 34. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Corporate Activity 34 Proposed Ascension / Delta / Rebosis merger • Increased liquidity • Increased market cap positions newco to top 10 in listed property sector • Greater access to capital markets • Sovereign underpin - government tenant dominated portfolio • Synergies and cost efficiencies • Accelerated promotion of BEE service providers and entrepreneurs • Optimise investor returns
  35. 35. INTERIM RESULTS SIX MONTHS ENDED 28 FEBRUARY 2014Prospects 35 ● Well positioned to achieve solid growth through quality portfolio and efficient management ‒ Fundamentals on retail and office portfolio geared for current and medium term conditions ‒ Expansions and tenant mix optimisations will further strengthen retail centres for exceptional growth ‒ Maintain one of the lowest vacancies in the sector ● Will continue to pursue quality growth opportunities without necessarily coming to market ● Reaffirm forecast distribution of 97,0 to 99,0 cpu for the for year ending 31 August 2014
  36. 36. QUESTIONS & ANSWERS 36

×