Annual results presentation
December 2013
Summary of financial performance

Dec
D 2013
Distribution pe u t
st but o per unit
Units in issue
Net asset value
Interest...
Sectoral split – book value
Jun 2013
Other
1%

Retail
Industrial

Retail
Offices

14%
29%

3%

Dec 2013

Industrial

Other...
Sectoral split – GLA
Jun 2013

Dec 2013

Retail Other
1%
Industrial
8%
16%
4%

Retail Other
1%
Industrial
6%
5%
14%

71%

...
Portfolio performance
 Vacancies
 Arrears
 Operating expenses
 Renewals and letting
 Impact of property disposals
p
p...
Vacancies

GLA
Jun 2013

GLA
Dec 2013

Portfolio

5.1%
5 1%

5.1%
5 1%

 Logistics

3.7%

4.1%

 Industrial

11.1%

14.6...
Lease expiry
Year

GLA

Vacant

5.1%

2014

26.2%

2015

22.1%

2016

19.9%

2017

11.4%

2018

10.5%

>2018

4.8%

7
Strategy
 Developments
- New logistics facilities
g
- Redevelopment of manufacturing
- Office upgrades
 Increase offshor...
Disposals
Name

Sales
proceeds
R’000

Valuation at
31 Dec 2012
R’000

Exit
yield

Effective
date

Menlyn Dealership

250 0...
Disposals (continued)
Name

Sales
proceeds
R’000

Valuation at
31 Dec 2012
R’000

Exit
yield

Effective
date

The Braides
...
Disposals (continued)
Name

Sales
proceeds
R’000

Valuation at
31 Dec 2012
R’000

Exit
yield

Effective
date

30 Impala Ro...
Completed developments
GLA
(100%)

Completion cost
(100%)

Yield

Completion
date

Raceway Industrial Park

21 345m²

R91....
Commenced developments
Estimated
Estimated
Estimated
construction
completion
yield
cost (100%)
date

Name

%
Owned

GLA
(1...
Development pipeline
Estimated
Est. commence
yield
ment
date

%
Owned

GLA
(100%)

Intended
use

Estimated
construction
co...
Monsanto Raceway

15
Silverstone Road Raceway

16
Montague Business Park

17
Noursepack Epping 2  

18
Noursepack Epping  2

19
16 Industry Road Isando

20
Equity investments
Dec 2013
No. of units/ shares
Rockcastle*

Market value
R
R’ million

121 705 087

R1 704

Nepi

16 024...
Facilities
Jun 2013
DMTN - Bonds

R1 300m

DMTN - CP

Standard Bank

DMTN - Bonds

R1 300m

R1 270m

DMTN - CP

R465m
R462...
DMTN programme
 Moody’s investment grade rating
‒ A3
A3.za l
long t
term

P-2.za short t
P2
h t term

 Programme size: R...
Bank funding
Bank

Facility

Expiry

Nedbank

R462m

Dec 2015

R1 300m

Dec 2016

Standard Bank

R750m

Jun 2017

RMB

R80...
Swap profile
Expiry
p y

R million

Average swap / CAP rate
g
p

2015

300

7.68%

2016

600

8 %
8.11%

2017

700

7.22%
...
Outlook
 Logistics
‒ Vacancies
‒ Rental levels
 Industrial
‒ V
Vacancies
i
‒ Rental levels
 Offices
‒ Vacancies
‒ Renta...
Questions & Answers

27
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Capital Property Fund FY 2013 financial results presentation

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Capital Property Fund FY 2013 financial results presentation

  1. 1. Annual results presentation December 2013
  2. 2. Summary of financial performance Dec D 2013 Distribution pe u t st but o per unit Units in issue Net asset value Interest-bearing debt to asset ratio* Jun J 2013 Dec D 2012 Jun J 2012 40.04 ce ts 0 0 cents 35 58 ce ts 35.58 cents 36 50 ce ts 36.50 cents 33 8 cents 33.28 ce ts 1 606 986 279 1 606 986 279 1 606 986 279 1 606 986 279 R10.31 R9.29 R8.69 R7.93 20.8% 21.3% 21.7% 22.8% * The interest-bearing debt to asset ratio is calculated by dividing interest-bearing borrowings g y g g g by total assets. 2
  3. 3. Sectoral split – book value Jun 2013 Other 1% Retail Industrial Retail Offices 14% 29% 3% Dec 2013 Industrial Other 1% 11% 3% 27% 8% 58% 53% Logistics Offices Logistics 3
  4. 4. Sectoral split – GLA Jun 2013 Dec 2013 Retail Other 1% Industrial 8% 16% 4% Retail Other 1% Industrial 6% 5% 14% 71% Logistics Offices Offices 74% Logistics 4
  5. 5. Portfolio performance  Vacancies  Arrears  Operating expenses  Renewals and letting  Impact of property disposals p p p y p 5
  6. 6. Vacancies GLA Jun 2013 GLA Dec 2013 Portfolio 5.1% 5 1% 5.1% 5 1%  Logistics 3.7% 4.1%  Industrial 11.1% 14.6%  Offices 9.5% 8.0%  Retail 5.2% 3.6% 6
  7. 7. Lease expiry Year GLA Vacant 5.1% 2014 26.2% 2015 22.1% 2016 19.9% 2017 11.4% 2018 10.5% >2018 4.8% 7
  8. 8. Strategy  Developments - New logistics facilities g - Redevelopment of manufacturing - Office upgrades  Increase offshore exposure  Acquisitions  Sale of: - Smaller and parastatal tenanted offices - Smaller retail properties - E t Eastern Cape properties C ti  Gearing 8
  9. 9. Disposals Name Sales proceeds R’000 Valuation at 31 Dec 2012 R’000 Exit yield Effective date Menlyn Dealership 250 000 236 700 9.1% 11 Feb 2013 Leeuwkop Road Sunninghill 184 020 164 700 8.8% 1 Dec 2013 Gezina Galleries 159 330 152 600 9.8% 19 Jul 2013 Ziyabuya Shopping Centre 116 000 110 000 9.7% 4 Jul 2013 Woodmead Super Value Mall 104 660 101 200 9.1% 31 Jul 2013 3 Simba Road Sunninghill^ 82 950 59 200 8.7% 1 Jan 2014 Shoprite Centre Pretoria North 76 640 70 600 9.0% 15 Jul 2013 Blackheath Pavilion 70 500 63 900 9.6% 15 Jul 2013 382 Jan Smuts Avenue Craighall 68 215 56 300 9.0% 1 Jul 2013 63 Wierda Road East Wierda Valley 63 500 46 600 8.5% 8 5% 30 Apr 2013 9
  10. 10. Disposals (continued) Name Sales proceeds R’000 Valuation at 31 Dec 2012 R’000 Exit yield Effective date The Braides 57 935 62 000 9.1% 1 Jul 2013 Constantia View Office Park 56 477 52 000 9.1% 1 Jul 2013 3 River Road Bruma 45 558 44 900 9.1% 1 Jul 2013 135 Musgrave Road 45 307 40 600 9.2% 9 2% 1 Jul 2013 31 Beacon Road Florida North 42 612 37 800 9.1% 1 Jul 2013 5 Simba Road Sunninghill^ Sunninghill 33 030 26 100 8.7% 8 7% 1 Jan 2014 1211 Umgeni Road Stanford Hill^ 32 500 51 000 5.5% Transfer date Woodmead Square 31 900 27 700 9.4% 31 Jul 2013 10
  11. 11. Disposals (continued) Name Sales proceeds R’000 Valuation at 31 Dec 2012 R’000 Exit yield Effective date 30 Impala Road Chiselhurston^ 24 500 24 400 8.2% 9 Jan 2014 Liberty R dl d Lib t Redlands 22 600 21 200 8.5% 8 5% 6 S 2013 Sep Willowvale 15 979 17 900 9.2% 1 Jul 2013 Cascades Office Park Pietermaritzburg 15 800 15 400 9.5% 29 Aug 2013 1 600 013 1 482 800 Total ^ Held for sale at 31 December 2013. 11
  12. 12. Completed developments GLA (100%) Completion cost (100%) Yield Completion date Raceway Industrial Park 21 345m² R91.7m 9.7% Jul 2013 16 Industry Road 11 182m² 182m R48.5m 8.2% Oct 2013 N1 Business Park (20%) 7 355m² R39.3m 9.1% May 2013 N1 Business Park (20%) 5 300m² R26.2m 9.2% Nov 2013 Montague Business Park (25%) 6 332m² R36.1m 9.0% Jul 2013 Montague Business Park (25%) 4 466m² R23.5m 8.5% Dec 2013 Montague Business Park (25%) 1 686m² R7.6m 8.3% Aug 2013 14 Fitzmaurice Epping 3 368m² R13.9m 9.2% Apr 2013 61 034m² R286.8m Name Total 12
  13. 13. Commenced developments Estimated Estimated Estimated construction completion yield cost (100%) date Name % Owned GLA (100%) Raceway Industrial Park* 100% 40 750m² R186.0m 9.0% Jun 2014 Montague Business Park* 25% 19 840m² R88.7m 8.1% Jul 2014 100% 17 634m² R54.0m 8.5% Jun 2014 20% 12 907m² R53.9m 9.9% Jan 2014 100% 11 718m² R43.5m 8.5% Jun 2014 102 849m² R426.1m Noursepack Epping 2 N1 Business Park* 14 Fitzmaurice Ave Epping 2 Total * Additional buildings in park 13
  14. 14. Development pipeline Estimated Est. commence yield ment date % Owned GLA (100%) Intended use Estimated construction cost (100%) 100% 350 000m² Logistics R2 000m 9.0% Sep 2014 80% 60 000m² P-grade offices R1 410m 8.5% Sep 2014 Tradeport City Deep 100% 52 000m² Logistics R220m 9.0% May 2014 Linbro Park 100% 30 000m² Logistics R126m 9.0% Feb 2014 Linbro Park 100% 30 000m² Logistics R126m 9.0% Jun 2014 Pomona 100% 20 000m² Logistics R86m 9.0% 9 0% May 2014 Name Clairwood Logistics Park Sandton Offices* Total 542 000m² R3 968m * Acquisition unconditional, not yet transferred. 14
  15. 15. Monsanto Raceway 15
  16. 16. Silverstone Road Raceway 16
  17. 17. Montague Business Park 17
  18. 18. Noursepack Epping 2   18
  19. 19. Noursepack Epping  2 19
  20. 20. 16 Industry Road Isando 20
  21. 21. Equity investments Dec 2013 No. of units/ shares Rockcastle* Market value R R’ million 121 705 087 R1 704 Nepi 16 024 304 R1 298 Resilient 16 200 000 R899 Fortress – B 96 000 000 R878 Fortress – A 23 200 000 R341 Ascension – A^ 42 750 000 R190 Ascension – B 45 600 000 R114 Delta^ 8 204 677 R71 Tower Tower^ 4 021 474 R33 Total R5 528 * Equity accounted ^ Subsequent to financial year end Capital sold its stakes in Delta, Tower and 32 274 150 Ascension - A shares 21
  22. 22. Facilities Jun 2013 DMTN - Bonds R1 300m DMTN - CP Standard Bank DMTN - Bonds R1 300m R1 270m DMTN - CP R465m R462m Dec 2013 R1 270m R500m R2 100m R2 100m R462m RMB Nedbank Standard Bank RMB Nedbank 22
  23. 23. DMTN programme  Moody’s investment grade rating ‒ A3 A3.za l long t term P-2.za short t P2 h t term  Programme size: R3bn Term Issue size Expiry Margin over Jibar p p Commercial paper R250m 6 months 0.25% Commercial paper R250m 3 months 0.22% 3 Year R500m Nov 2014 1.60% 3 Year R350m Mar 2015 1.60% 3 Year R250m Aug 2015 g 1.40% 5 Year R200m Feb 2017 1.75% Total R1 800m 23
  24. 24. Bank funding Bank Facility Expiry Nedbank R462m Dec 2015 R1 300m Dec 2016 Standard Bank R750m Jun 2017 RMB R800m Aug 2017 Standard Bank R520m Oct 2018 RMB Total R3 832m 24
  25. 25. Swap profile Expiry p y R million Average swap / CAP rate g p 2015 300 7.68% 2016 600 8 % 8.11% 2017 700 7.22% 2018 800 7.68% 68% 2019* 800 6.64% 2020 00 400 7.27% % 2021 200 7.65% 3 800 7.40% 0% * Included in the 2019 hedge is a cap of R200m. 25
  26. 26. Outlook  Logistics ‒ Vacancies ‒ Rental levels  Industrial ‒ V Vacancies i ‒ Rental levels  Offices ‒ Vacancies ‒ Rental levels  Retail ‒ Vacancies ‒ Rental levels  Funding  G Growth in distributions th i di t ib ti 26
  27. 27. Questions & Answers 27

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