Financial Results Presentation for the year ended 28 February 2019 - - PowerPoint PPT Presentation
Financial Results Presentation for the year ended 28 February 2019 Table of Contents 3 4 5 1 2 Welcome Spear Highlights Financial Active Asset & Capital & Introduction to Date FY 2019 Performance FY 2019 Management 9 7
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Asset value: R3.37 billion Asset value: R3.13 billion Asset value: R1.45 billion Market cap: R1.82 billion
Market cap: R1.98 billion Asset value: R3.81 billion
Market cap: R1.58 billion Market cap: R942 million List on the JSE 11/11/2016 Period end 28/02/2017 Period end 28/02/2018 Interim period 31/08/2018 Period end 28/02/2019 Asset value: R1.4 billion Market cap: R800 million % Growth % Growth % Growth % Growth Asset value: 3.6% Asset value: 116% Asset value: 7.6% Asset value: 12.95% Market cap: 15% Market cap: 68% Market cap: 14.5% Market cap: 9.17%
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Number of properties
Market Cap
R3.8 bn
Asset Value
25.07%
Market Cap growth
21.62%
Asset Value Growth
R152.8 m
Capital raised
R127 m
Average property value
R82.5m
Acquisition issues
R9 465/m2
Average property valuation
188 m
Shares in issue
Average in-force escalations
402 652 m2
GLA
98%
Occupancy
30 months
WALE
R85 /m2/pm
Average rental including rates
Financial Results Presentation for the year ended 28 February 2019
Distribution per share
TNAV
10.09%
FY2019 Distribution growth
4.7%
TNAV growth
R11.67
TNAV net distribution
41.73 cents
FY2019 Interim distribution
4.6%
TNAV net distribution growth
44.69 cents
FY2019 Final distribution
21.59%
Net Cost to Income
LTV
64.5%
Fixed debt ratio
25 months
Average debt expiry
9.01%
Average cost
9.05%
Average fjxed cost of debt
Financial Results Presentation for the year ended 28 February 2019
Total return (TR) Annualised
90% 100% 110% 120% 130% 140%
10-Nov-16 10-Dec-16 10-Jan-17 10-Feb-17 10-Feb-18 10-Mar-17 10-Mar-18 10-Apr-17 10-Apr-18 10-May-17 10-May-18 10-Jun-17 10-Jun-18 10-Jul-17 10-Jul-18 10-Aug-17 10-Aug-18 10-Sep-17 10-Sep-18 10-Oct-17 10-Oct-18 10-Nov-17 10-Nov-18 10-Dec-17 10-Dec-18 10-Jan-18
150% 80%
SEA Indexed Total Return SAPY Indexed Total Return
10-Jan-19 10-Feb-19
Assumptions: Invested in 1 000 SEA shares at listing at R9.00 per share and reinvested all your dividends in SEA at the closing price on the payment date of each dividend.
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
for the year ended 28 February 2019
Group Audited Feb-19 R’000 Group Audited Feb-18 R’000 Property revenue 426 122 304 055 Other income 8 607 12 540 Total revenue 434 729 316 595 Property operating and management expenses (139 200) (87 422) Net property-related income 295 529 229 173 Administrative expenses (22 668) (17 530) Net property operating profjt 272 861 211 643 Fair value adjustment — Investment properties 111 702 252 535 Depreciation (2 943) (441) Annual listing fees (261) (314) Share-based payment expense (6 456) (455) Profjt from operations 374 903 462 968 Net fjnance cost (100 111) (76 044)
(109 202) (82 297)
9 091 6 253 Profjt before taxation 274 792 386 924 Taxation (245) (695) Profjt for the year 274 547 386 229 Attributable to: Equity owners of the parent 270 389 383 186 Non-controlling interest 4 158 3 043 Total comprehensive income for the year 274 547 386 229 Distribution per share (cents) 86.42 78.50 Interest cover ratio (times) 2.65 2.56
Financial Results Presentation for the year ended 28 February 2019
for the year ended 28 February 2019
and paid 12 November 2018
R’000 Earnings (profjt attributable to owners of the parent) 270 389 Adjusted for: Fair value adjustments to investment properties (111 702) Straight-lining of leases adjustment (7 812) Equity-settled share-based payment reserve 6 456 Antecedent dividend 4 443 Total distribution 161 774 Interim distribution * (R'000) 77 358 Number of shares for the period 185 388 709 Interim distribution per share (cents) 41.73 Final distribution (R'000) 84 416 Number of shares for the period 188 888 709 Final distribution per share (cents) 44.69 YTD distribution cents total Cents Interim distribution 41.73 Final distribution 44.69 YTD distribution cents total 86.42
Financial Results Presentation for the year ended 28 February 2019
for the year ended 28 February 2019
Group Audited Feb-19 R’000 Group Audited Feb-18 R’000 ASSETS Non-current assets 3 808 427 2 975 850 Current assets 108 291 251 488 Total assets 3 916 718 3 227 338 EQUITY AND LIABILITIES Total attributable to owners 2 295 532 1 917 318 Non-controlling interest 54 155 54 155 Shareholders' interest 2 349 687 1 971 473 Non-current liabilities 1 335 853 1 053 434 Current liabilities 231 178 202 431 Total liabilities 1 567 031 1 255 865 Total equity and liabilities 3 916 718 3 227 338 Number of ordinary shares in issue 188 888 709 165 190 689 Gearing ratio (%) 39.58 38.48 Tangible net asset value per share (Rands) 12.12 11.57 Tangible net asset value per share net of distribution (Rands) 11.67 11.16
Financial Results Presentation for the year ended 28 February 2019
Fixed FY2021 FY2020 Variable FY2022 FY2023
25-month average maturity LTV
Average Cost of Funding
Cost
9.05%
Cost
9% 26
months
24
months
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
142 Bree Street
5 non-core assets Tyger Manor
Island Business Park
Blackheath Park
Northgate Park
(balance in debt funding) Talana Close
DISPOSED FY18 DISPOSED DISPOSED ACquIRED ACquIRED ACquIRED ACquIRED ACquIRED DEBT SETTLED DEBT SETTLED
CAPITAL RAISED CAPITAL RAISED
Place
ACquIRED
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Value (R’000) 441 022 Sector Industrial GLA (m2) 86 095 Total Value (%) 11.58% Valuation (R/m2) 5 123 Value (R’000) 426 034 Sector Commercial GLA (m2) 25 115 Total Value (%) 11.18% Valuation (R/m2) 16 963 Value (R’000) 416 400 Sector Mixed Use GLA (m2) 31 100 Total Value (%) 10.93% Valuation (R/m2) 13 389 Value (R’000) 322 139 Sector Mixed Use GLA (m2) 18 761 Total Value (%) 8.46% Valuation (R/m2) 17 171 Value (R’000) 314 302 Sector Commercial GLA (m2) 17 002 Total Value (%) 8.25% Valuation (R/m2) 18 486
Mega Park, Bellville 2 Long Street, Cape Town Sable Square, Century City UES DoubleTree by Hilton, Woodstock Northgate Park, Brooklyn Total Value
Total GLA
Portfolio
Financial Results Presentation for the year ended 28 February 2019
124 497 m2 34 648 m2 28 153 m2 207 354 m2 8 000 m2
Commercial Retail Hospitality Industrial Residential
31% 9% 7% 51% 2%
R559 m R77.6 m R505 m R44.1 m R74 m R4.2 m R8.6 m R956 m R124.5 m
Retail Retail Hospitality Hospitality Residential Non-property Residential Industrial Industrial
15% 18% 13% 10% 2% 1% 2% 25% 29%
R1.7 bn R167.7 m
Commercial Commercial
45% 40%
Total Revenue % by Sector
Property split by Value
Property split by GLA
Financial Results Presentation for the year ended 28 February 2019
Expiries and cancellations GLA Gross rental at expiry Gross expiry rental R/m² Renewals/ New lets GLA Gross rental at renewal / New Let Gross new rental R/m² Rental reversion % Commercial 17 409 2 378 813 137 20 487 3 016 016 147 7.74 Industrial 68 930 2 483 248 36 69 433 2 708 842 39 8.29 Retail 5 020 392 901 78 6 639 563 408 85 8.43 91 359 5 254 961 84 96 560 6 288 265 90 8.03
The table below refmects the letting activity of the period:
Spear’s lease expiry profjle remains defensive with a WALE of 30 months. Spear’s asset and property management team has a hands-on approach to tenant retentions and actions tenant engagements well in advance of expiry to ensure business continuity and risk management for the business.
Financial Results Presentation for the year ended 28 February 2019
Large national and international tenants, large listed tenants, government and major franchisees. National tenants, smaller listed tenants, franchisees, medium to large professional fjrms. Other
204 Tenants
Hospitality
Retail
Offjces
Industrial
111 Tenants
84 Tenants
Based on GLA Based on GLA Based on GLA
Total
Total vacancy
(Due to aggressive letting and successful tenant retention programmes) Number of tenants
An analysis of the property portfolio in respect
Analysis of the property portfolio as at 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Average
10% 20% 30% 40% 50% 60% Vacant Total
13%
Total
0%
Total
2%
Total
31%
Monthly
3/2019 - 2/2020
Expires 3/2020 - 2/2021
3/2021 - 2/2022 Expires 3/2022 - 2/2023 Expires 3/2023 onwards 70% 80% 90% 100% 0% Total
18%
Total
8%
Total
28%
Retail Hospitality Residential Industrial Commercial
Financial Results Presentation for the year ended 28 February 2019
Consol Liquor Runners Distell Nampak 15 on Orange Autograph Collection Lindsay Manufacturing Imperial Multi Room Management MWEB Auction Nation
0 k/m2 5 k/m2 10 k/m2 15 k/m2 20 k/m2 25 k/m2
Financial Results Presentation for the year ended 28 February 2019
Water continuity investment R7 million Capital deployed to date R2 million Water use and transport licences In process Current boreholes 2 Current well points 3 Boreholes to be actioned 4 16 000l water tanker truck 1 Water savings initiatives: Implemented waterless urinals Taps switched ofg (where possible), supplied hand sanitisers Tap aerators installed to reduce water fmows use of pre-diluted cleaning chemicals use of grey water to clean where possible Assets earmarked for Phase 1 rollout 12 Combined system size 4.2 MWh Renewable energy investment R49 million Average payback period 4.5 years Benefjts of renewable energy: Reduction of energy costs by approximately 30% Less reliance on fossil fuel-generated supply (best investment choice amongst other RE options) Supply cost hedged against massive Eskom increases Reduction of group carbon footprint including low maintenance and operation costs Strong business and investment case to roll-out in favourable tarifg areas from R0.72c p/kWh – R 1,30 p/kWh Assists with green-star-rating process and aligns with Spear’s sustainability goals
Financial Results Presentation for the year ended 28 February 2019
Physical address: Cnr Bosmansdam and Ratanga Roads, Milnerton Planned GLA to be added: 12 000 m2 Sector: Retail & Residential Development cost: R200 m Target yield: 10% Status: Target commencement FY2019
Financial Results Presentation for the year ended 28 February 2019
Physical address: 78 Edward Street, Tyger Valley GLA added: 3 500 m2 Sector: Mixed use Development cost: R89 m Target yield: 9% Status: Final completion q2 FY2020
Financial Results Presentation for the year ended 28 February 2019
Physical address: Marine Drive, Paarden Island GLA to be developed: 52 000 m2 Sector: Mixed use Development cost: R1.4 bn Target yield: 10% Status: Target commencement TBA
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Main tenant: Super Group Consumer Physical address: 20 Radnor Road GLA: 12 880 m2 Sector: Industrial - Logistics Acquisition price: R112 m Acquisition yield: 9.10% WALE: 38 months
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019
Fully internally managed fund Led by industry veterans with successful track record Substantial shareholding by directors - 35,5% Proximity to assets is excellent Distribution for FY20 to be 6% - 8% higher than FY19 distribution per share Growth supported by accretive acquisitions and organic portfolio improvements Realisation of underdeveloped portfolio bulk. ± 150 000m2 Portfolio value R 3,8 billion GLA of 402 652m2 Occupancy rate 98% In-force Escalations 8,07%
Financial Results Presentation for the year ended 28 February 2019
Financial Results Presentation for the year ended 28 February 2019