Interim results presentation
June 2013
Summary of financial performance

Jun
J 2013

Dec
D 2012

Jun
J 2012

Dec
D 2011

35 58 ce ts
35.58 cents

36 50 ce ts
36....
Sectoral split – book value
Dec 2012
Retail

Jun 2013

Other
Offices

Industrial

14%
3%

Other
1%

Retail

2%
29%

Indust...
Sectoral split – GLA
Dec 2012
Retail Other
1%
I d ti l
Industrial
9%
16%
4%

70%

Logistics

Jun 2013
Offices

Retail Othe...
Portfolio performance
Vacancies
Arrears
Operating expenses
Renewals and letting

5
Vacancies

GLA
Dec 2012
Portfolio

GLA
Jun 2013

5.9%
5 9%

5.1%
5 1%

Logistics

4.6%

3.7%

Industrial

3.4%

11.1%

13....
Lease expiry
Year
Vacant

GLA %
5.1%

2013

14.1%

2014

23.2%

2015

22.0%

2016

15.7%

2017

9.5%

>2017

10.4%

7
Strategy
Developments
- New logistics
- Redevelopments
- P grade offices
P-grade
Listed equity investments
Acquisitions
Sa...
Disposals
Name

Sales
proceeds
R’000

Valuation at Dec
2012
R’000

Exit
yield

Effective
date

Menlyn Dealership

236 700
...
Disposals (continued)
Name

Sales
proceeds
R’000

Valuation at
Dec 2012
R’000

Exit
yield

Effective
date

382 Jan Smuts A...
Completed developments
Name

GLA
(100%)
(
)

Completion cost
(
(100%)
)

Yield

Completion
date

Raceway Industrial Park

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

%
Owned

GLA
(100%)

...
Development pipeline
Estimated
Est. commenceyield
ment
date

%
Owned

GLA
(100%)

Intended
use

Estimated
construction
cos...
Sandton Offices

14
Typical manufacturing facilities

15
Typical manufacturing redevelopment
Before

After

16
16 Industry Road
Before
B f

After
Aft

Before

After

17
16 Industry Road

18
Catalunya Road ‐ Raceway Industrial Park
Artist’s i
A ti t’ impression
i

Actual

19
Silverstone ‐ Raceway Industrial Park
Artist’s i
A ti t’ impression
i

Under construction

20
Fourways Office Park
Existing guard house
E i ti
dh

New guard house
N
dh

21
Equity investments
Jun 2013
No. of units/ shares

Market
value
l

Nepi

13 250 000

R887.6m

Rockcastle

65 670 000

R883....
Facilities
Dec 2012
DMTN - Bonds

R1 300m

DMTN - CP

Jun 2013

Standard Bank

DMTN - Bonds

R1 220m

R1 300m

DMTN - CP

...
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
...
Bank funding
Bank

Facility

Expiry

Nedbank

R462m

Dec 2015

Standard Bank

R750m

Jun 2017

R2 100m

Aug 2017

R520m

J...
Swap profile
Expiry
p y

R million

Average swap / CAP rate
g
p

2014

200

7.87%

2015

600

7.97%
9 %

2016

800

8.21%
...
Outlook
Logistics
‒ Vacancies
‒ Rental levels
Industrial
‒ V
Vacancies
i
‒ Rental levels
Offices
‒ Vacancies
‒ Rental leve...
Office market

28
Questions & Answers

29
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Capital Property Fund HY 2013 financial results presentation

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Capital Property Fund HY 2013 financial results presentation

  1. 1. Interim results presentation June 2013
  2. 2. Summary of financial performance Jun J 2013 Dec D 2012 Jun J 2012 Dec D 2011 35 58 ce ts 35.58 cents 36 50 ce ts 36.50 cents 33 8 cents 33.28 ce ts 3 34.27 ce ts cents 1 606 986 279 1 606 986 279 1 606 986 279 1 606 986 279 Net asset value R9.29 R8.69 R7.93 R7.79 Interest-bearing debt to asset ratio* 21.3% 21.7% 22.8% 22.2% Distribution pe u t st but o per unit Units in issue * The interest-bearing debt to asset ratio is calculated by dividing interest bearing borrowings interest bearing interest-bearing by total assets. 2
  3. 3. Sectoral split – book value Dec 2012 Retail Jun 2013 Other Offices Industrial 14% 3% Other 1% Retail 2% 29% Industrial 14% 29% 3% 52% Logistics Offices 53% Logistics 3
  4. 4. Sectoral split – GLA Dec 2012 Retail Other 1% I d ti l Industrial 9% 16% 4% 70% Logistics Jun 2013 Offices Retail Other 1% Industrial 8% 16% 4% Offices 71% Logistics 4
  5. 5. Portfolio performance Vacancies Arrears Operating expenses Renewals and letting 5
  6. 6. Vacancies GLA Dec 2012 Portfolio GLA Jun 2013 5.9% 5 9% 5.1% 5 1% Logistics 4.6% 3.7% Industrial 3.4% 11.1% 13.6% 9.5% 4.9% 5.2% Offices Retail 6
  7. 7. Lease expiry Year Vacant GLA % 5.1% 2013 14.1% 2014 23.2% 2015 22.0% 2016 15.7% 2017 9.5% >2017 10.4% 7
  8. 8. Strategy Developments - New logistics - Redevelopments - P grade offices P-grade Listed equity investments Acquisitions Sale of: - Smaller and parastatal tenanted offices - Smaller retail properties - Eastern Cape properties Gearing G i 8
  9. 9. Disposals Name Sales proceeds R’000 Valuation at Dec 2012 R’000 Exit yield Effective date Menlyn Dealership 236 700 9.1% 11 Feb 13 Gezina Galleries 159 330 152 600 9.8% 19 Jul 13 Ziyabuya Shopping Centre 116 000 110 000 9.7% 9 7% 4 Jul 13 Woodmead Super Value Mall# 104 660 101 200 9.1% Transfer date Shoprite Centre Pretoria North 76 640 70 600 9.0% 15 Jul 13 Blackheath Pavilion 70 500 63 900 9.6% 9 6% 15 Jul 13 Woodmead Square# # 250 000 31 900 27 700 9.4% Transfer date Not yet transferred. 9
  10. 10. Disposals (continued) Name Sales proceeds R’000 Valuation at Dec 2012 R’000 Exit yield Effective date 382 Jan Smuts Avenue Craighall* 68 215 56 300 9.0% 1 Jul 13 63 Wierda Road East Wierda Valley 63 500 46 600 8.5% 8 5% 30 Apr 13 The Braides* 57 935 62 000 9.1% 1 Jul 13 Constantia View Office Park* 56 477 52 000 9.1% 1 Jul 13 3 River Road Bruma* 45 558 44 900 9.1% 1 Jul 13 135 Musgrave Road Durban* 45 307 40 600 9.2% 1 Jul 13 31 Beacon Road Florida North* 42 612 37 800 9.1% 1 Jul 13 Willowvale* 15 979 17 900 9.2% 1 Jul 13 1 204 613 1 120 800 Total * Purchase price payable R161 million in cash and R171 million in shares in Tower Property Fund Limited. 10
  11. 11. Completed developments Name GLA (100%) ( ) Completion cost ( (100%) ) Yield Completion date Raceway Industrial Park 21 345m² R91.7m 9.7% Jul 13 N1 Business Park (20%) 7 355m² R39.3m 9.1% May 13 14 Fitzmaurice Epping 3 368m² R13.9m 9.2% Apr 13 32 068m² R144.9m Total 11
  12. 12. Commenced developments Estimated Estimated Estimated construction completion yield cost (100%) date % Owned GLA (100%) Raceway Industrial Park* 100% 40 750m² R186.0m 9.0% Jun 14 16 Industry Road 100% 11 182m² 182m R48.5m 8.0% Sep 13 N1 Business Park* 20% 12 907m² R53.9m 9.9% Nov 13 N1 Business Park Park* 20% 5 300m² 300m R26.2m 9.2% Nov 13 Montague Business Park* 25% 4 476m² R23.6m 8.5% Nov 13 Montague Business Park Park* 25% 3 807m² 807m R24.8m 8.0% Aug 13 Montague Business Park* 25% 2 491m² R16.2m 8.0% Aug 13 o tague us ess a Montague Business Park* 25% 5% 1 605m² 605 R7.0m 0 9 9% 9.9% Aug 13 ug 3 100% 14 571m² R40.0m 8.5% Mar 14 97 099m² R426.2m Name Noursepack Total * Additional buildings in park. 12
  13. 13. Development pipeline Estimated Est. commenceyield ment date % Owned GLA (100%) Intended use Estimated construction cost (100%) 100% 350 000m² Logistics R2 000m 9.0% Sep 14 80% 60 000m² P-grade offices R1 410m 8.5% Feb 14 Tradeport City Deep 100% 52 000m² Logistics R220m 9.0% Oct 13 Linbro Park 100% 30 000m² Logistics R126m 9.0% Feb 14 Linbro Park 100% 30 000m² 000m Logistics R126m 9.0% Oct 13 Name Clairwood Logistics Park Sandton Offices Total 522 000m² R3 882m 13
  14. 14. Sandton Offices 14
  15. 15. Typical manufacturing facilities 15
  16. 16. Typical manufacturing redevelopment Before After 16
  17. 17. 16 Industry Road Before B f After Aft Before After 17
  18. 18. 16 Industry Road 18
  19. 19. Catalunya Road ‐ Raceway Industrial Park Artist’s i A ti t’ impression i Actual 19
  20. 20. Silverstone ‐ Raceway Industrial Park Artist’s i A ti t’ impression i Under construction 20
  21. 21. Fourways Office Park Existing guard house E i ti dh New guard house N dh 21
  22. 22. Equity investments Jun 2013 No. of units/ shares Market value l Nepi 13 250 000 R887.6m Rockcastle 65 670 000 R883.2m Resilient 16 200 000 R870.6m Fortress – B* 96 000 000 R816.0m Fortress – A* 23 100 000 R339.6m Ascension – A* 44 200 000 R210.8m Ascension – B* 53 500 000 R139.1m Total R4 146.9m * During the period portions of the investments in Fortress Income Fund Limited and Ascension Properties Limited were disposed of and, as a result, are no longer equity accounted and are now reflected as investments. 22
  23. 23. Facilities Dec 2012 DMTN - Bonds R1 300m DMTN - CP Jun 2013 Standard Bank DMTN - Bonds R1 220m R1 300m DMTN - CP R450m R462m RMB Nedbank R1 270m R465m R2 100m R584m Standard Bank R2 100m RMB Nedbank 23
  24. 24. 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 R215m 3 months 0.21% Commercial paper R250m 4 months 0.21% 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 765m 24
  25. 25. Bank funding Bank Facility Expiry Nedbank R462m Dec 2015 Standard Bank R750m Jun 2017 R2 100m Aug 2017 R520m Jun 2018 RMB Standard Bank Total R3 832m 25
  26. 26. Swap profile Expiry p y R million Average swap / CAP rate g p 2014 200 7.87% 2015 600 7.97% 9 % 2016 800 8.21% 2017 700 00 7.22% % 2018 800 7.68% 2019* 00 700 6 5% 6.45% 2020 200 6.32% 4 000 7.48% 8% * Includes a CAP of R200 million. 26
  27. 27. Outlook Logistics ‒ Vacancies ‒ Rental levels Industrial ‒ V Vacancies i ‒ Rental levels Offices ‒ Vacancies ‒ Rental levels Retail ‒ Vacancies ‒ Rental levels Funding Growth in distributions G th i di t ib ti 27
  28. 28. Office market 28
  29. 29. Questions & Answers 29

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