GROWTHPOINT PROPERTIES LIMITED Results... · 41.7% 3 010 Market 1 850 1 450 6 608 800 2 510 2 000 1...
Transcript of GROWTHPOINT PROPERTIES LIMITED Results... · 41.7% 3 010 Market 1 850 1 450 6 608 800 2 510 2 000 1...
GROWTHPOINT PROPERTIES LIMITED
INTERIM RESULTS
PRESENTATION
FOR THE SIX MONTHS ENDED
31 DECEMBER 2012
2
Introduction and Highlights
Financial Review
Capital Management
Operational Overview and Operating Environment
RSA
GOZ
V&A
Acquisitions, Disposals, Developments and Commitments
Revised offer for Fountainhead
Prospects
Annexures
AGENDA
INTRODUCTION AND
HIGHLIGHTS
4
INTRODUCTION TO GROWTHPOINT
Fully integrated internally managed property company employing 457 staff
R13,5 billion
Office
R14,8 billion
R7,5 billion R14,8 billion AUD1,7 billion
Industrial
Australia V&A
Waterfront Office Industrial Retail
The largest listed property company on the JSE with property assets valued at
R55,7 billion including 100% of Growthpoint Properties Australia (“GOZ”) and 50% of
the V&A Waterfront in Cape Town
Market capitalisation of R43,3 billion at 31 Dec 2012 (R24.50 per linked unit)
Diversified property portfolio comprising 390 properties in RSA, 43 properties in
Australia which is 65.3% owned and a 50% interest in the properties of the V&A
Waterfront in Cape Town
R5,1 billion
5
HIGHLIGHTS FOR THE PERIOD UNDER REVIEW
19.4% Return to investors for the 6 months
(annualised)
Capital growth
13.1%
Income yield
6.3%
Distribution per linked unit 7.2% growth 72,7 cents
Market value Dec 2012
R4,9 billion
Total cost Dec 2012
R3,2 billion
R179,4 million additional investment in Growthpoint Properties Australia
Capital growth
19.4%
Income yield
11.7%
31.1% Return on R3,2 billion Australian
investment for the 6 months (annualised)
New equity raised via Distribution Re-Investment Plan (supported by 59.4% of unitholders)
R613,1 million
Average annual growth in interim distributions over last 5 years
7.3%
Unrestricting the working capital of our tenants
UNdeposit
56,3 59,1 63,9 67,8 72,7
58,3 62,1
67,1 71,2
114,6
121,2
131,0
139,0
0
30
60
90
120
150
FY 08 FY 09 FY 10 FY 11 FY 12
6
GROWTH IN DISTRIBUTION PER LINKED UNIT
Final distribution Interim distribution Cents
6.5%
5.0%
8.1%
8.1%
6.1%
6.1%
5.8%
8.1%
6.1%
7.2%
Growth Growth
Growth
Growth
7 GROWTH IN TANGIBLE ASSETS AND MARKET
CAPITALISATION
Cents R’ billion
Tangible assets (R’bn) Market cap (R’bn)
Unit price (cents) NTAV per unit (cents)
0
300
600
900
1200
1500
1800
2100
2400
2700
0
10
20
30
40
50
60
70
80
90
FINANCIAL REVIEW
9
NET PROPERTY INCOME AFTER OPERATING EXPENSES
V&A
RSA
GOZ
R’million
1 587 1 479
1 341
556
382
236
150
140
-
500
1 000
1 500
2 000
2 500
Dec 12 Dec 11 Dec 10
The V&A Waterfront is included in Net Property Income after Operating Expenses in the above graph, although this is
accounted for as finance income. GOZ is included at 100%.
24%
69%
19%
74% 85%
15%
7%
7%
2 293
2 001
1 577
10
SIMPLIFIED CONSOLIDATED INCOME STATEMENT Dec 2012
R’ million
Dec 2011
R’ million
Increase/
(Decrease)
Gross property revenue 2 849 2 480 14.9%
RSA 2 191 2 031 7.9%
GOZ 658 449 46.5%
Property expenses (597) (544) 9.7%
RSA (524) (496) 5.6%
GOZ (73) (48) 52.1%
Net property income 2 252 1 936 16.3%
Other operating expenses (109) (75) 45.3%
RSA (80) (56) 42.9%
GOZ (29) (19) 52.6%
Net property income after operating expenses 2 143 1 861 15.2%
Finance costs (938) (832) 12.7%
RSA (691) (643) 7.5%
GOZ (247) (189) 30.7%
Finance income 205 206 (0.5%)
Investment income from V&A Waterfront 150 140 7.1%
Other finance income 55 66 (16.7%)
Adjustment for NCI, foreign exchange profit & normal taxation (125) (82) 52.4%
Distributable profit before debenture interest 1 285 1 153 11.4%
Distribution for the period 1 285 1 153 11.4%
Average exchange rate at R8.79/AUD (Dec 2011: R7.84/AUD) for GOZ
23.9% 24.3% 24.4%
3.7% 3.1% 2.8%
0%
5%
10%
15%
20%
25%
30%
Dec 12 Jun 12 Dec 11
11.1% 10.4% 10.7%
4.4% 4.7% 4.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Dec 12 Jun 12 Dec 11
27.2% 26.0% 27.4%
5.6% 6.1% 5.9%
0%
5%
10%
15%
20%
25%
30%
35%
Dec 12 Jun 12 Dec 11
11
EXPENSE TO INCOME RATIOS
Property expense ratio (%)
Operating expense ratio (%)
RSA V&A
GOZ
11
Property expense ratio (%)
Operating expense ratio (%)
Property expense ratio (%)
Operating expense ratio (%)
15.5% 15.1% 14.9%
27.6% 27.4% 27.2%
32.8% 32.1% 33.3%
%
%
%
12
CONSOLIDATED BALANCE SHEET (EXTRACTS)
Dec 2012
R’ million
Jun 2012
R’ million
Dec 2011
R’ million
Jun 2012
Dec 2012
Increase
Property portfolio * 50 666 48 106 45 350 5.3%
RSA 35 866 34 988 33 623 2.5%
GOZ *** 14 800 13 118 11 727 12.8%
50% Investment in V&A Waterfront 4 912 4 912 4 950 -
Borrowings ** 20 829 19 731 17 981 5.6%
RSA 13 818 13 613 12 953 1.5%
GOZ *** 7 011 6 118 5 028 14.6%
Linked unitholders’ interest (NAV) 29 650 28 543 27 442 3.9%
* Includes R1 238m of properties reclassified as held for sale (Jun 2012 – R515m, Dec 2011 – R418m)
** Excludes fair value adjustments
*** Closing exchange rate at 31 Dec 2012 - R8.70/AUD (Jun 2012 – R8.35/AUD, Dec 2011 – R8.24/AUD)
13
PROPERTY PORTFOLIO
Annexures
RSA
Dec 2012
R’ million
GOZ
Dec 2012
R’ million
Total
Dec 2012
R’ million
V&A
Dec 2012
R’ million
Balance at 30 Jun 2012 34 988 13 118 48 106 4 950
Acquisitions 3 & 16 13 524 537 -
Disposals 3 (382) - (382) -
Foreign exchange translation - 532 532 -
Developments and capital
expenditure
412
602
1 014
128
Sub-total 35 031 14 776 49 807 5 078
Fair value adjustment* 835 24 859 -
Balance at 31 Dec 2012 35 866 14 800 50 666 5 078
Long-term property assets 35 246 14 182 49 428 5 078
Properties held for sale 4 620 618 1 238 -
* Fair value adjustment represents 1.7% of investment property portfolio
CAPITAL
MANAGEMENT
* Nominal value of interest-bearing borrowings (net of cash), divided by the fair value of property assets, including investment
property held for sale. For RSA the 50% equity investment in V&A Waterfront was included in the fair value of property assets
** Calculated in Rands
33.0% 33.9%
33.1%
2.7 2.8 2.8
0
1
2
3
4
5
6
7
8
0%
10%
20%
30%
40%
50%
Dec 12 Jun 12 Dec 11
46.6% 44.4%
41.6%
2.3 2.2 2.1
0
1
2
3
4
5
6
7
8
0%
10%
20%
30%
40%
50%
Dec 12 Jun 12 Dec 11
15
RSA
LTV (incl V&A) *
Interest cover ratio (incl V&A)
GOZ**
LTV *
Interest cover ratio
times % times %
LOAN TO VALUE & INTEREST COVER RATIO
-
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
Dec 12 Jun 12
900
16
RSA - DIVERSIFIED BORROWINGS
Unsecured
41.7%
3 010
1 850
1 450
6 608
800
2 510
2 000
1 450
6 853
13 818 13 613
NOMINAL VALUE R’ million
GOZ debt of R7,0 billion (R8.70/AUD) is secured (Jun 2012: secured debt of R6,1 billion at an exchange rate of
R8.35/AUD)
Secured Bank debt
Commercial Paper
Unsecured Bank debt
Corporate Bond
Secured Institutional Financier
Debt Capital
Market
28.3%
Traditional
Bank Debt
71.7% Secured
58.3%
Secured
61.0%
Debt Capital
Market
24.3%
Traditional
Bank Debt
75.7%
Unsecured
39.0%
17
CAPITAL MANAGEMENT Long-term strategy of increasing unsecured debt and reducing the percentage of encumbered assets,
41.7% unsecured at Dec 2012 (Jun 2012: 39.0%)
Long-term strategy to increase exposure to the debt capital market to 50%
R500 million bond issue (GRT06) in Dec 2012 mainly utilised for re-financing of bank debt
Equity of R613,1 million raised through DRIP in Sept 2012 utilised for acquisitions, capital
expenditure and reduction of debt
Dec 2012 pricing on commercial paper reduced to 19 basis points from 24 basis points in Dec 2011
RSA: 85.5% (Jun 2012: 83.1%) of interest rates fixed for a weighted average of 4.7 years (Jun 2012:
4.9 years)
Weighted average interest rate remained at 9.5% from Jun 2012
Weighted average term of the loan book increased from 4.1 years in Jun 2012 to 4.2 years
Unutilised committed facilities of R2,5 billion
Moody’s has maintained Growthpoint’s credit rating, with a stable outlook
Treasury policy guidelines reaffirmed by Board of Directors:
Growthpoint will ensure that cash flows from operations plus available credit facilities will exceed committed
cash outflows and debt maturities over a rolling 12 month period
Growthpoint will fix the interest rate on a minimum of 75% of the total debt
OPERATIONAL
OVERVIEW AND
OPERATING
ENVIRONMENT
13 578 12 180 11 462
14 802 14 282 13 443
7 486 7 161
6 994
-
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
Dec 12 Dec 11 Dec 10
581 521 484
690 655
572
396 359
332
-
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Dec 12
1 388
RSA PORTFOLIO OVERVIEW 19
Industrial
Office
Retail
1 667
1 535
Dec 11 Dec 10
R’ million R’ million
35 866 33 623
31 899
NET PROPERTY
INCOME
PROPERTY
PORTFOLIO
Number of Properties 390 412 426
24%
23%
24%
41% 43%
41%
35% 34% 35%
21% 22%
22%
41% 42%
42%
38% 36% 36%
20
NET PROPERTY INCOME ANALYSIS RSA (EXCL V&A)
Dec 2012
R’ million
Dec 2011
R’ million
Increase/
(Decrease)
Gross property revenue 2 191 2 031 7.9%
Retail 803 724 10.9%
Office 891 846 5.3%
Industrial 497 461 7.8%
Property expenses (524) (496) 5.6%
Retail (222) (203) 9.4%
Office (201) (191) 5.2%
Industrial (101) (102) (1.0%)
Net property income 1 667 1 535 8.6%
Adjustments: (253) (221)
Acquisitions & Developments (119) (70)
Disposals (18) (39)
Investec rent (116) (112)
Adjusted “like for like” net property income 1 414 1 314 7.6%
Retail 538 498 8.0%
Office 512 476 7.6%
Industrial 364 340 7.1%
21
KEY PERFORMANCE INDICATORS - RSA
Six months
ended
Dec 2012
Year ended
Jun 2012
Six months
ended
Dec 2011
Vacancies (%) 4.1% 4.0% 4.0%
Total arrears (R’million) 48,0 32,6 49,3
Bad debts (R’million) 7,1 7,8 2,6
Average in force escalations (%) 8.0% 8.4% 8.4%
Renewal success rate (%) 71.2% 75.2% 74.9%
Weighted average renewal growth (%) 2.9% 2.7% 1.6%
Weighted average future escalations on renewals (%) 8.3% 8.4% 8.5%
Number of employees 457 457 446
Net Property Income per employee (R) 3 647 953 6 781 181 3 441 704
22
RSA - RETAIL Growth in centre turnovers are slowing down, tracking major
retailer sales performance. However, retailer occupancy cost-
to-turnover ratios remain well within acceptable industry
norms
RSA retailer expansion of international brands within existing
operations (Edcon & Foschini) and interest from European and
Australian international retailers creating demand at prime
centres
Vacancies are at historical average and vacancy level at top 10
centres is below 1.5% if areas under development are excluded
Second tier shopping centre performance under pressure in
terms of tenant retention, renewal rental levels and arrears
Cost containment remains difficult - especially labour intensive
services and administration costs. Implementation of new
municipal valuation roll in 2013 could impact rental
affordability levels
Redevelopments/Refurbishments/Extensions progressing well
with extensions to Brooklyn Mall, Kolonnade, Walmer Park,
Waterfall Mall and Northgate expected to open for trade from
Q3/2013 to Q3/2014
Size of portfolio:
Dec 2012
R’million
Dec 2011
R’million
Net Property Income 581 521
Portfolio Value 13 578 12 180
Vacancy: % %
Total portfolio 2.9 3.6
Top 10 centres 1.9 1.7
Balance of portfolio 4.7 5.2
Arrears: R’million R’million
Total 24,1 26,4
Bad debt provision 6,9 4,9
Renewals: % %
Renewal success rate 80.7 82.4
Renewal rental growth 5.0 7.1
23
RSA - OFFICE The ongoing challenging economic conditions resulted in the
loss of several major tenants in the first half. Vacancies
increased to 7.1% but significantly outperformed the national
average for Q4/2012 of 10.6%
New letting totalled 45 588m² and 70 454m² of leases expiring
in the first half were renewed. The declining renewal success
rate of 65.3% further emphasising the tough market conditions.
The renewal growth rate remains under pressure but is now
positive, a turnaround from (4.4%) reported last year
Arrears have been kept under control through continued
proactive credit control, ending the first half at 6.9% of
collectables. The bad debt provision increased to R7,1 million
due to Government arrears at the end of Dec 2012. These
have subsequently been collected
The second half will remain challenging with vacancies under
pressure. Five new developments and major redevelopments,
totalling 36 067m², of which 20 469m² has been let, will be
completed before Jun 2013. It is anticipated that a further 2
developments will achieve GBCSA certification, bringing the
total to 4
Size of portfolio:
Dec 2012
R’million
Dec 2011
R’million
Net Property Income 690 655
Portfolio Value 14 802 14 282
Vacancy: % %
Total portfolio 7.1 6.7
Arrears: R’million R’million
Total 14,0 14,1
Bad debt provision 7,1 5,8
Renewals: % %
Renewal success rate 65.3 72.6
Renewal rental growth 0.7 (4.4)
24
RSA - INDUSTRIAL Challenging trading conditions, echoed by negative factory
output data
Continued increases in input costs, specifically electricity, is
negatively affecting the manufacturing sector. Implied
pressure on renewal growth and lease periods
Continued demand for warehousing and distribution facilities
(>10,000m²). Increasing consolidation is evident
Vacancy levels have stabilised. Expected to remain at ±3%
level for the near future
Arrears have remained stable
New development enquiries remain positive
Acquisition growth remains limited due to high demand and
sellers expectations
Strategy:
Key focus areas are vacancies, arrears and renewals
Unlock value from existing portfolio
Pursue new development and acquisition opportunities if
financially viable
Size of portfolio:
Dec 2012
R’million
Dec 2011
R’million
Net Property Income 396 359
Portfolio Value 7 486 7 161
Vacancy: % %
Total portfolio 3.1 2.7
Arrears: R’million R’million
Total 9,9 8,8
Bad debt provision 4,1 4,6
Renewals: % %
Renewal success rate 70.5 73.8
Renewal rental growth 2.7 5.1
6 924 4 932
1 289
7 876
6 795
5 406
-
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
Dec 12 Dec 11 Dec 10
25
NET PROPERTY
INCOME
PROPERTY
PORTFOLIO
253
121 22
332
280
229
-
100
200
300
400
500
600
700
Dec 12 Dec 11 Dec 10
Industrial
Office
R’ million R’ million
14 800
11 727
6 695
Number of Properties 43 40 33
585
401
251
57%
43%
70%
30%
91%
9%
53%
42%
19%
81%
58%
47%
GOZ PORTFOLIO OVERVIEW
26
KEY PERFORMANCE INDICATORS - GOZ
Six months
ended
Dec 2012
Year ended
Jun 2012
Six months
ended
Dec 2011
Vacancies (%) 0.8% 0.3% -
Total arrears (R’million) - 0,3 4,1
Bad debts (R’million) - - -
Average in force escalations (%) 3.2% 3.2% 3.2%
Renewal success rate (%) n/a 100.0% 100.0%
Weighted average renewal growth (%) n/a 6.1% 4.2%
Weighted average future escalations on renewals (%) n/a 3.6% 3.5%
Number of employees 10 8 9
Net Property Income per employee (R) 58 500 000 113 250 000 44 555 556
27
OVERVIEW - GOZ
Size of portfolio:
Dec 2012
R’million
Dec 2011
R’million
Net Property Income 585 401
Portfolio Value 14 800 11 727
HY 2013
results in
line with
guidance
Capital
management
Distributable profit: AUD36,8 million; a 47.6% increase from HY2012
9.0 cps distribution; 3.4% above HY2012 (before withholding tax of 0.38 cps
payable by international investors - Growthpoint RSA)
24.1% total return for calendar year to 31 Dec 2012
9.3 cps distribution forecast for 6 months (before withholding tax of 0.39 cps
payable by international investors – Growthpoint RSA) to 30 Jun 2013 taking
total FY2013 distribution to 18.3 cps (4.0% growth)
Distribution declared equates to 95% of distributable profit
Net Tangible Assets (“NTA”) unchanged at AUD1.93
Management Expense Ratio consistent at 0.4%
Small gearing increase (45.6% to 46.9%) but 18.3% rise in Interest Cover Ratio to
2.5 times
28
OVERVIEW – GOZ (CONT’D)
Equity
Quality
investment
property
portfolio
Summary
Two DRIPs raised approximately AUD48,9 million, well above NTA
20.4% per annum total return over 3 year period
Continued significant increase in market capitalisation (close to AUD1 billion)
and free float (AUD300 million)
Diversified property portfolio valued at AUD1,7 billion
Quality tenants with long WALE (7.0 years) and growing rental income
98% occupied with minimal short term lease expiries providing a secure income
GOZ will seek to continue the strong growth it has experienced
2.9% increase in like-for-like property income
0.8% increase in property valuations; after writing off previous acquisition costs
and allowing for straight-line leasing adjustments, a decrease of 0.1%
Completion of two fund through developments during the period
Acquisition of well located and well tenanted, high yielding assets have
improved portfolio
81 80
38 33
16 14
20 19
-
20
40
60
80
100
120
140
160
180
Dec 12 Dec 11
29
NET PROPERTY
INCOME
PROPERTY
PORTFOLIO
Hotel
Fishing & Industrial
Office
Retail
2 772 2 586
887 719
330 280
461 619
628 638
-
1 000
2 000
3 000
4 000
5 000
6 000
Dec 12 Dec 11
Hotel
Fishing & Industrial
Office
Retail
Bulk
R’ million R’ million
155 146 5 078
4 842
V&A PORTFOLIO OVERVIEW (50%)
30
KEY PERFORMANCE INDICATORS – V&A (50%)
Six months
ended
Dec 2012
Year ended
Jun 2012
Six months
ended
Dec 2011
Vacancies (%) 0.9% 1.6% 2.1%
Total arrears (R’million) 30,0 38,1 30,1
Bad debts (R’million) 9,6 19,9 13,7
Average in force escalations (%) 8.5% 8.5% 8.5%
Renewal success rate (%) 71.2% 83.7% 94.7%
Weighted average renewal growth (%) 6.0% 2.7% 6.9%
Weighted average future escalations on renewals (%) 8.0% 7.6% 7.2%
Number of employees 172* 207 218
Net Property Income per employee (R) 901 163 1 473 430 669 725
* Decrease in the number of employees due to parking management being outsourced
31
V&A WATERFRONT (50%) RETAIL
Strong retail sales growth up by 18.4% for the rolling 12 months
Voids at a record low of 1.2% with Victoria Wharf and
Clocktower retail space fully let
Total and trading retail debtors at a level of 12% and 5%
respectively
Footfall continued to grow year on year, despite the impact of
the food court development. Figures peaked in Dec with
footfall figures on 31st Dec reaching 185 000
New openings include Market on the Wharf, Moyo, Bodyworlds
Exhibitions and the redeveloped Food Court which is performing
very well
Shimmy Beach Club with a GLA of 3 555m² opened during Dec
and by all accounts has traded well
OFFICE
Drop in office vacancies to 2.4% with key space being let. Just
over 2 000m² remaining vacant, of which key void space under
offer
Trade debtors at a positive level of 8%
Total debtors are being continually managed while focus
remains on closing off historic legal arrears
Size of portfolio:
Dec 2012
R’million
Dec 2011
R’million
Net Property Income 155 146
Portfolio Value 5 078 4 842
Vacancy: % %
Total portfolio 0.9 2.1
Arrears: R’million R’million
Total 30,0 30,1
Bad debt provision 9,6 13,7
Renewals: % %
Renewal success rate 71.2 94.7
Renewal rental growth 6.0 6.9
32
V&A WATERFRONT (50%) (CONT’D) HOTEL
Hotel occupancy levels and revenue per room have marginally
improved year on year and it is believed these have bottomed out
FISHING AND INDUSTRIAL
Fishing and industrial revenue continues to be strong with no
vacancies
Marina activity for the period is high, with the extension of
A-spines in the Marina providing additional berthing facilities
DEVELOPMENT AND LEASING UPDATE
Allan Gray development progressing to plan for completion in
Jul 2013
Development of Portswood Ridge into residential units for rental
will commence in Sep 2013. A small residential development
adjacent to Allan Gray office development to be launched in
Mar 2013
Topshop on track for trading in late Apr 2013
A new mall development to be created between the Link Mall and
Post Office Mall anchored by Edgars to commence in autumn for a
summer opening. This will open up additional retail space within
Victoria Wharf
Development is underway for a new generation, flagship Pick ’n Pay store, expected
to open in Dec 2013. The new store at over 6 000m² will be significantly larger
than the current one at 2 600m² and will offer vastly improved access to parking
ACQUISITIONS,
DISPOSALS,
DEVELOPMENTS &
COMMITMENTS
34
Retail Office Industrial GOZ Total V&A
Purchase price of
acquisitions 13 - - 524 537 -
Selling price of disposals 47 284 51 - 382 -
Developments and capex 65 241 106 602 1 014 128
Commitments 303 656 157 398 1 514 129
Refer to Annexures 3 and 16 for yields on Acquisitions and Disposals
RSA properties (excl V&A) where amounts in excess of R30,0 million were spent on development during
the period include:
Brooklyn/Design Square (75%) Retail R36,9m
Lakeside 3 Office R46,4m
Grand Central Office Park Office R38,6m
Meadowbrook Estate Industrial R37,5m
Growthpoint RSA has capital commitments for various acquisitions and development projects of
R1,1 billion with the major ones being:
Waterfall Mall Retail R215,8m
Menlyn Corner Office R213,0m
Deloitte & Touche Office R113,4m
Hatfield Festival Office R129,7m
GOZ has capital commitments for acquisitions and development projects of R397,5 million with the
major one being:
27 – 49 Lenore Drive Industrial R393,6m
ACQUISITIONS, DISPOSALS, DEVELOPMENTS AND COMMITMENTS
35
DEVELOPMENTS
Waterfall Mall Extension
Current GLA of 49 287 m²
Development GLA of 9 818 m²
Completion Apr 2014
Project value amounting to R216 million
Project yield of 8.5%
Grand Central Office Park:
7 108m² development in Midrand, opposite Gautrain Station
Completion Apr 2013
4 600m² let , including 3 000m² to Gautrain Management Agency
GBCSA certification: application for Four Star Green Star Design Rating
Project value amounting to R111 million
Project yield of 10.0%
36
DEVELOPMENTS (CONT’D)
Menlyn Corner:
10 047m² development in Menlyn ,Pretoria
Completion early 2013
3 600m² let to Liberty Group
Significant Green components
Project value amounting to R213 million
Project yield of 9.3%
Lakeside 3:
6 152m² development in Centurion, opposite Gautrain Station
Completion early 2013
Actively marketing space
GBCSA certification: application for Four Star Green Star Design Rating
Project value amounting to R92 million
Project yield of 9.2%
REVISED OFFER
FOR FOUNTAINHEAD
38
REVISED OFFER FOR FOUNTAINHEAD
Considering the scarcity value of the Fountainhead property portfolio and the fact that
even at the increased offer, the transaction is set to be accretive to Growthpoint
unitholders, the Board undertook to:
Increase the offer by 5,7% from 35 Growthpoint linked units to 37 Growthpoint linked units for
every 100 Fountainhead units in existence at the effective date; and
Introduce a pricing floor, whereby the offer will not be adjusted below 35 Growthpoint linked
units for every 100 Fountainhead units irrespective of the outcome of the due diligence
investigation
39
REVISED OFFER FOR FOUNTAINHEAD (CONT’D)
What does the increased offer mean for Growthpoint & Fountainhead unitholders:
Note: all information provided by I-Net Bridge at market close on 19 February 2013
The increased offer for the Fountainhead Property Trust
Total transaction value (Rm) 13 931
Equity yield (%) 6.0%
Property yield (%) 6.7%
Implied premium to Fountainhead
- closing prices (value) (Rm) 1 270
- closing prices (%) 13%
- 30 day VWAP (%) 10%
- 90 day VWAP (%) 12%
Implied premium to Redefine
- closing prices (%) 9%
- closing prices (value) (Rm) 857
The offer
represents a
21% premium if
one considers
the
Growthpoint
offer of 37
Growthpoint
linked units, as
at 22 Oct 2012
(being the date
prior to the
initial
Growthpoint
offer)
Pricing floor
• Growthpoint has introduced the Minimum Ratio, whereby it
will not adjust below 35 Growthpoint linked units for every 100
Fountainhead units irrespective of the outcome of the due
diligence
• Fountainhead unitholders have opportunity to receive 37
Growthpoint linked units per 100 Fountainhead units if the
distribution per Fountainhead unit is in line with the published
forecast income distribution per unit
• Growthpoint is confident that the risk of the Fountainhead
distributable income falling to the point whereby it would
become dilutive to Growthpoint’s distributable earnings is
negligible
At the pricing floor, Growthpoint’s offer remains:
Implied premium to Fountainhead
- closing prices (value) (Rm) 665
- closing prices (%) 7%
Implied premium to Redefine
- closing prices (%) 3%
- closing prices (value) (Rm) 252
Even at the
pricing floor,
Growthpoint’s
offer is still
better than
Redefine
40
REVISED OFFER FOR FOUNTAINHEAD (CONT’D)
What is the intended process going forward?
4
0
Threats of litigation:
• Threats of litigation have created uncertainty, and in our view, unduly
influenced the process
• Growthpoint has obtained Senior Counsel legal opinion on the possible
implications to timing resulting from the litigation:
• to stop the implementation of transaction, will require an interim
interdict, temporarily prohibiting the carrying out of the transaction
• an applicant for an interim interdict must establish the existence of a
prima facie right (limited prospect of success in our view)
• process can be concluded, in an urgent case, in a relatively short
period
Current position of the parties:
• Growthpoint has continued discussions with the Trustee,
the FSB, and both Growthpoint & Fountainhead
unitholders
• Trustee has requested information relating to, inter alia,
the threats of litigation
• Fountainhead & Redefine exclusivity was previously
extended to Friday, 22 February 2013, however has since
expired
Understand several
unitholders have
sent letters to
Fountainhead, the
Trustee and the FSB
expressing concerns
around the process
Process set out by Fountainhead:
• Fountainhead SENS announcement invites Redefine,
Growthpoint, the FSB and the Trustee to provide their
views for inclusion in the Fountainhead circular
• Growthpoint’s understanding is that it is intended for
Fountainhead unitholders to be provided with
comparable information relating to both offers to enable
them to compare the offers and determine which offer to
pursue
Request for a due diligence:
• Growthpoint is supportive of process that would see
Fountainhead unitholders consider offers from both
Redefine and Growthpoint and determine which offer to
pursue
• However, process demands that Fountainhead
unitholders be put in a position to compare the offers
equally on a comparable basis
• Can only be done if Growthpoint is allowed the opportunity
to complete a due diligence investigation and to finalise
the terms of an agreement
The fact that
Growthpoint has
been denied
access to a due
diligence is
directly
attributable to
the threats of
litigation
Growthpoint’s view remains:
• Manco has no right to share in the income generated by
the Fountainhead Property Trust assets
• Manco has no form of proprietary right in the assets or
their proceeds
• Manco has no valid basis for a damages claim against
either Growthpoint or Fountainhead, and will not be
entitled to interdict the transaction
Process going forward:
• Fountainhead & Redefine exclusivity expired on Friday, 22
February 2013
• Growthpoint to open discussions with Fountainhead with a
view to commencing due diligence; clearly in the best
interests of Fountainhead unitholders that Growthpoint
be allowed the opportunity to conduct a due diligence
investigation
“We reiterate our
preference for the
Growthpoint offer, and
maintain that
unitholders should be
given a fair
opportunity to vote on
both offers.”
- Naeem Tilly, Avior
Research, 20 Feb 2013
PROSPECTS
42
PROSPECTS
RSA
SA economy remains sluggish, negatively impacted by labour unrest and job losses
Consumer spending coming under pressure, impacting retail sales
Demand for office space remains weak
Property fundamentals however remain stable
o Overall vacancies at 4.1%
o Total arrears at similar levels to December 2011 with negligible bad debt write-offs
o Property expense ratio at 23.9%
Access to capital, debt and equity remains good
Interest rates projected to remain at current low levels for the next 12 to 18 months
Good investment opportunities are hard to find
REIT legislation now promulgated, with PLS’s able to convert on or after 1 April 2013.
Growthpoint intends to convert to a REIT effective 1 July 2013 and will adopt a new MOI
Distribution growth of between 7.0% and 7.5% projected for the year to 30 June 2013
43
PROSPECTS (CONT’D)
GOZ
Australian economy still showing good growth
Demand in the office sector has slowed down, however the industrial sector and demand for
quality industrial space remains robust
Investment demand, particularly from international investors, remains very strong
Property fundamentals remain excellent
o Negligible vacancies and arrears
Distribution of 18.3 cents per stapled security confirmed for the year ending 30 Jun 2013
representing a payout ratio of 95%
V&A
Ongoing improvements being made to the development masterplan
Significant improvements in letting of major vacancies
Exciting new redevelopment opportunities in the Victoria Wharf Shopping Centre
Allan Gray on target for completion in Jul 2013 and lease commencement in Sep 2013
V&A on target to deliver budgeted distribution growth of circa 7%
THANK YOU
ANNEXURES
46
CONTENT
Annexure 1 – Growthpoint’s Property Portfolio
Annexure 2 – Split of RSA Property Portfolio (Excl V&A)
Annexure 3 – Acquisitions and Disposals RSA (Excl V&A)
Annexure 4 – Non-Current Assets Held for Sale
Annexure 5 – Top 12 RSA Retail Properties by Value (Excl V&A)
Annexure 6 – Top 12 RSA Office Properties by Value (Excl V&A)
Annexure 7 – Top 12 RSA Industrial Properties by Value (Excl V&A)
Annexure 8 – GLA and Vacancy Reconciliation RSA (Excl V&A)
Annexure 9 – Lease Expiry by Sector RSA (% of GLA)
Annexure 10 – Lease Expiry by Sector RSA (% of Gross Monthly Rental)
Annexure 11 – Linked Units Issued and Unitholders Holding > 2% at Dec 2012
Annexure 12 – Detailed Borrowings
47
CONTENT (CONT’D)
Annexure 13 – Debt Expiry Profile RSA
Annexure 14 – Fixed Interest Rate Expiry Profile for RSA Borrowings
Annexure 15 – Split of GOZ Property Portfolio
Annexure 16 – Acquisitions – GOZ
Annexure 17 – Top 12 GOZ Properties by Value
Annexure 18 – Net Property Income Analysis GOZ
Annexure 19 - GLA and Vacancy reconciliation GOZ
Annexure 20 - Lease expiry by sector GOZ
Annexure 21 – Split of V&A Property Portfolio
Annexure 22 – Net property income analysis V&A (50%)
Annexure 23 – GLA and Vacancy Reconciliation V&A (50%)
Annexure 24 – Lease expiry by sector V&A
48
ANNEXURE 1 - GROWTHPOINT’S PROPERTY PORTFOLIO
Retail
Office
Industrial
RSA
Total
GOZ*
V&A*
Number of properties 45 121 224 390 43 1
GLA (m²) 969 926 1 140 535 2 201 990 4 312 451 929 801 195 562
Vacancy (m²) 28 411 81 071 68 050 177 532 7 070 1 675
Vacancy (%) 2.9% 7.1% 3.1% 4.1% 0.8% 0.9%
Valuation (R’m) 13 578 14 802 7 486 35 866 14 800 5 078
Value per m² (excl bulk) 13 985 12 761 3 354 8 233 15 917 22 753
Average gross rental (per m²/month) R129 R120 R37 R79 AUD 160** R152
Forward yield 8.6% 9.2% 10.7% 9.3% 8.4% 6.8%
Average in force escalations 7.7% 8.2% 8.3% 8.0% 3.2% 8.5%
Weighted average lease period (years):
- By gross rental 3.2 4.4 3.2 3.7 7.0 3.5***
- Excluding Investec n/a 3.2 n/a 3.2 n/a n/a
Renewal success rate 80.7% 65.3% 70.5% 71.2% n/a 71.2%
Weighted average renewal growth 5.0% 0.7% 2.7% 2.9% n/a 6.0%
Weighted average future escalations on
renewals 7.6% 8.9% 8.8% 8.3% n/a 8.0%
* V&A is included reflecting Growthpoint’s 50% interest, GOZ is reflected at 100%
** Based on net rental per annum
*** Various leases in the V&A Waterfront were excluded in the average lease period calculation, mainly relating to the fishing industry. When
the leases are included the average lease period increases to 7.5 years
49 ANNEXURE 2 - SPLIT OF RSA PROPERTY PORTFOLIO
(EXCL V&A)
Value
GLA
Value
GLA
Retail
Office
Industrial Eastern Cape
Other
Greater JHB
Western Cape
Pretoria
KwaZulu-Natal
North West
38%
41%
21%
23%
26%
51% 54%
19%
8%
13% 3%
1% 2%
50%
20%
12%
9% 4%
3% 2%
50 ANNEXURE 3 - ACQUISITIONS AND DISPOSALS RSA
(EXCL V&A)
Acquisitions
Purchase
Price
R’ million Sector
Pick ’n Pay Walmer* 12,7 Retail
* Consolidated into Walmer Park Shopping Centre
Disposals
Selling
price
R’ million Sector
Profit on
cost
Profit/
(loss) on
book
value Yield
Northcliff Square Shopping Centre 40,2 Retail 0,2 0,2 9.3%
ABSA Midrand 114,0 Office 29,9 (5,4) 8.9%
115 Paul Kruger Street 40,4 Office 26,5 0,3 10.4%
ABSA Cash Centre, Westway 30,3 Office 5,8 0,1 10.2%
La Rocca 28,4 Office 8,4 (0,3) 10.5%
Amalgam South 44,4 Industrial 32,9 0,1 9.9%
Other properties below R20,0 million 84,1 Various 24,8 (0,1) 9.1%
Total 381,8 128,5 (5,1)
51
ANNEXURE 4 – NON-CURRENT ASSETS HELD FOR SALE
Properties held for sale
Sector
Fair value
Dec 2012
R’ million
Heritage Market Retail 75,0
Atlas Mall Shopping Centre Retail 57,4
5 & 7 Sturdee Avenue Office 100,3
Metropark Office 78,0
Sunset Boulevard Office 73,0
Cowey Park Office 67,0
174 Visagie Street Office 47,6
The Boulevard Office 35,5
Ilnov Industrial 34,3
Fitzmaurice* Industrial 26,0
Italcraft Props Industrial 13,6
Burghers Industrial 12,7
Total 620,4
134 Lilkar Road Australia – Industrial 618,0
Total 1 238,4 * Only a portion being sold
52 ANNEXURE 5 - TOP 12 RSA RETAIL PROPERTIES BY
VALUE (EXCL V&A)
Value
GLA
Top 12 Properties
Balance of Retail Properties
Top 12 Properties
Balance of Retail Properties
71.3%
28.7%
54.3%
45.7%
Building Fair value R’ million
GLA m²
1 Brooklyn/Design Square (75%), Brooklyn, Pretoria 1 646 55 670*
2 Waterfall Mall, Rustenburg 1 068 49 287
3 Lakeside Mall, Benoni 1 004 67 498
4 La Lucia Mall, La Lucia, Durban 908 36 423
5 Kolonnade (50%), Montana Park, Pretoria 731 37 111*
6 Walmer Park Shopping Centre, Walmer Park, Port Elizabeth 682 38 310
7 Alberton City, Alberton 671 49 344
8 The Constantia Village, Constantia, Cape Town 670 20 396
9 Woodmead Retail Park, Woodmead, Johannesburg 659 54 890
10 Northgate (50%), Randburg 655 45 294*
11 River Square Shopping Centre, Three Rivers, Vereeniging 529 38 899
12 Golden Acre, CBD Cape Town 452 33 685
Subtotal 9 675 526 807
33 Balance of the sector 3 903 443 119
45 Total for the RSA sector 13 578 969 926
* GLA reflected is the % undivided share held by Growthpoint
53 ANNEXURE 6 - TOP 12 RSA OFFICE PROPERTIES BY
VALUE (EXCL V&A)
Value
GLA
Top 12 Properties
Balance of Office Properties
Top 12 Properties
Balance of Office Properties
44.4%
55.6%
36.8%
63.2%
Building Fair value R’ million
GLA m²
1 Investec, Sandton 1 930 70 945
2 The Place, Sandton 836 33 979
3 Constantia Office Park, Roodepoort 803 71 753
4 Montclare Place, Claremont, Cape Town 492 29 446
5 Growthpoint Business Park, Midrand 448 63 463
6 Investec, CBD Cape Town 345 12 836
7 Central Park, Midrand 327 34 185
8 Hatfield Gardens, Hatfield, Pretoria 320 25 553
9 N1 City Hospital, Goodwood, Cape Town 317 14 022
10 Sunnyside Ridge Office Park, Parktown, Johannesburg 276 29 602
11 The District, Woodstock, Cape Town 239 18 423
12 Fredman Towers, Sandton 239 15 066
Subtotal 6 572 419 273
109 Balance of the sector 8 230 721 262
121 Total for the RSA sector 14 802 1 140 535
54 ANNEXURE 7 - TOP 12 RSA INDUSTRIAL PROPERTIES
BY VALUE (EXCL V&A)
Building Fair value R’ million
GLA m²
1 Growthpoint Industrial Estate, Meadowdale, Germiston 361 59 166
2 Hilltop Industrial Estate, Elandsfontein 180 69 571
3 Adcock Ingram, Midrand 176 21 536
4 Central Park, Elsiesriver, Cape Town 124 49 135
5 Grenville, Epping, Cape Town 123 16 220
6 Omni Park, Aeroton, Johannesburg 117 40 527
7 Pine Industrial Park, New Germany 113 39 150
8 226 Brakpan Road, Boksburg 102 40 300
9 Nestle, Belville, Cape Town 100 16 255
10 Kulingile Building, Isando, Kempton Park 98 49 000
11 Midas Meadowdale, Germiston 94 18 981
12 Greenbushes, Port Elizabeth 92 13 539
Subtotal 1 680 433 380
212 Balance of the sector 5 806 1 768 610
224 Total for the RSA sector 7 486 2 201 990
Value
GLA
Top 12 Properties
Balance of Industrial Properties
Top 12 Properties
Balance of Industrial Properties
22.4%
77.6%
19.7%
80.3%
55 ANNEXURE 8 – GLA AND VACANCY RECONCILIATION
RSA (EXCL V&A)
Total GLA
(m²)
Vacant
area
(m²)
Vacancy
Balance at 1 Jul 2012 4 352 098 172 761 4.0%
GLA adjustments (3 989) 806
Disposals (54 189) (6 460)
Developments and extensions 18 531 6 376
Leases expired in the period * 461 197
Renewals of expired leases ** (328 435)
New letting of vacant space (176 495)
Leases terminated 47 782
Balance at 31 Dec 2012 4 312 451 177 532 4.1%
* 10.6% of opening balance GLA expired during the period under review
** Retention % of 71.2% compared to 74.9% for the period to Dec 2011
56 ANNEXURE 9 – LEASE EXPIRY BY SECTOR RSA (% OF GLA)
RETAIL OFFICE INDUSTRIAL
%
17.1
9.0
9.8
16.3
19.9
19.6
5.4
2.9
16.6
8.0
10.6
20.6
14.5
19.3
3.3
7.1
10.8
11.2
14.3
15.9
20.3
22.9
1.5
3.1
TOTAL 13.8
TOTAL 9.8
TOTAL 12.3
TOTAL 17.2
TOTAL 18.7
TOTAL 21.2
TOTAL 2.9
TOTAL 4.1
2018 & beyond
By Dec 17
By Dec 16
By Dec 15
By Dec 14
By Dec 13
Monthly
Vacant
57 ANNEXURE 10 – LEASE EXPIRY BY SECTOR RSA
(% OF GROSS MONTHLY RENTAL)
%
RETAIL OFFICE INDUSTRIAL
11.0
10.5
9.4
18.6
20.7
22.5
4.5
2.8
24.3
7.7
9.4
19.8
12.8
18.1
2.8
5.1
13.3
8.2
12.4
17.0
19.7
24.4
1.9
3.1
TOTAL 17.1
TOTAL 8.8
TOTAL 10.2
TOTAL 18.7
TOTAL 17.2
TOTAL 21.1
TOTAL 3.1
TOTAL 3.8
2018 & beyond
By Dec 17
By Dec 16
By Dec 15
By Dec 14
By Dec 13
Monthly
Vacant
58
Linked units
Opening balance 1 Jul 2012 1 743 080 918
Distribution reinvestment (Sep 2012) 24 522 641
Closing balance 31 Dec 2012 1 767 603 559
Name
Units held
Holding
Public Investment Corporation 419 078 813 23.7%
BEE Consortia 122 000 000 6.9%
Stanlib 101 356 867 5.7%
Old Mutual Group 84 655 897 4.8%
Investec 64 303 491 3.6%
Eskom Pension & Provident Fund 55 511 012 3.1%
Vanguard 46 302 470 2.6%
Investment Solutions 41 424 531 2.3%
Momentum 36 938 562 2.1%
Total unitholders holding >2% 971 571 643 55.0%
Other 796 031 916 45.0%
Total 1 767 603 559 100.0%
Foreign unitholding 16.1%
ANNEXURE 11 – LINKED UNITS ISSUED AND UNITHOLDERS
HOLDING >2% AT DEC 2012
59
ANNEXURE 12 – DETAILED BORROWINGS
RSA
Secured/
Unsecured
Refinance
Date
Dec 2012
R’ million
Jun 2012
R’ million
Commercial paper – 3 months (R400m and R500m) Unsecured Jan/Feb 2013 900 800
Nedbank Unsecured Sep 2013 1 000 2 000
Standard Bank/Sanlam Secured Dec 2013 850 1 000
Standard Bank Secured Feb 2014 800 800
China Construction Bank Secured Aug 2014 250 250
ABSA Secured Nov 2014 600 695
Corporate Bond – GRT 01 Unsecured Dec 2014 500 500
Corporate Bond – GRT 05 Unsecured Jan 2015 750 750
ABSA – Paramount Secured Feb 2015 740 740
RMB Secured Jun 2015 500 500
Corporate Bond – GRT 03 Unsecured Oct 2015 500 500
Corporate Bond – GRT 02 Unsecured May 2016 500 500
Corporate Bond – GRT 04 Unsecured Sep 2016 260 260
RMB Secured Jun 2017 1 000 1 000
Corporate Bond – GRT 06 Unsecured Dec 2017 500 -
RMB Secured Feb 2018 675 675
RMB – Paramount Secured Apr 2018 740 740
Nedbank Unsecured Dec 2018 850 -
OMSFIN Secured May 2021 1 200 1 200
Investec Secured Feb 2024 703 703
Total 13 818 13 613
GOZ *
Westpac, NAB, ANZ (weighted average interest rate of
7.0%) Secured
Dec 2014 –
Dec 2016 7 011* 6 118*
Total RSA and GOZ 20 829 19 731
* Includes a cumulative foreign exchange difference of R1,4 billion (Jun 2012: R1,1 million)
60
ANNEXURE 13 – DEBT EXPIRY PROFILE RSA
Debt expiry at 31 Dec 2012 per 12 month period
%
20%
16%
18%
5%
11%
16%
9%
5%
0%
5%
10%
15%
20%
25%
Fixed interest rate expiry % at 31 Dec 2012 per 12 month period
61 ANNEXURE 14 – FIXED INTEREST RATE EXPIRY PROFILE
FOR RSA BORROWINGS
%
14%
7%
9% 9%
10% 10%
12%
6%
7%
11%
5%
0%
2%
4%
6%
8%
10%
12%
14%
62
ANNEXURE 15 - SPLIT OF GOZ PROPERTY PORTFOLIO
GLA Net property
income
Industrial
Office
Value Value
Western Australia
Tasmania
Queensland
Victoria
South Australia
New South Wales
ACT
Industrial
Office
39%
29%
9%
10%
7%
4% 2%
53% 47%
57%
43%
84%
16%
63
ANNEXURE 16 – ACQUISITIONS - GOZ
Acquisitions Sector R’ million AUD’ million Yield
51 – 65 Lenore Drive, Erskine Park, NSW Industrial 201,8 22,5 8.0%
6 – 7 John Mrorphett Place, Erskine Park, NSW Industrial 322,5 36,0 8.2%
524,3 58,5
33 A
nne S
treet,
Bri
sbane,
QLD
CB1 &
CB2,
SW
1 S
outh
Bri
sbane
219-2
47 P
acif
ic H
ighw
ay A
rtarm
on
10-1
2 M
ort
Str
eet,
Canberr
a
64
Building Sector Fair value R’ million
GLA m²
1 70 Distribution Street, Larapinta, QLD Industrial 1 410 75 425
2 2 Horrie Miller Drive, Perth Airport, WA Industrial 988 80 374
3 333 Ann Street, Brisbane, QLD Office 966 16 554
4 219 – 247 Pacific Highway, NSW Office 746 14 496
5 1231-1241 Sandgate Road, QLD Office 710 12 994
6 572-576 Swan Street, Richmond, VIC Office 653 14 660
7 134 Lillkar Road, Goulburn, NSW Industrial 622 42 826
8 28 Bilston Drive, Wodonga, VIC Industrial 618 57 440
9 22 Cordelia Street, South Brisbane, QLD Office 566 11 560
10 120 Northcorp Boulevard, Broadmeadows, VIC Industrial 566 58 320
11 32 Cordelia Street, South Brisbane, QLD Office 557 10 125
12 52 Merivale Street , QLD Office 553 9 456
Subtotal 8 955 404 230
31 Balance of the sector 5 845 525 571
43 Total for the GOZ sector 14 800 929 801
Value
GLA
ANNEXURE 17 – TOP 12 GOZ PROPERTIES BY VALUE
Top 12 Properties
Balance of GOZ Properties
Top 12 Properties
Balance of GOZ Properties
60.5%
39.5%
43.5%
56.5%
65
ANNEXURE 18 – NET PROPERTY INCOME ANALYSIS GOZ
70 Distribution Street, Larapinta, QLD
Dec 2012
R’ million
Dec 2011
R’ million
Increase
Gross property revenue 658 449 46.5%
Property expenses (73) (48) 52.1%
Net property income 585 401 45.9%
Adjustments: (169) (2)
Foreign exchange impact (81) -
Acquisitions and Developments (88) -
Disposals - (2)
Adjusted “like for like” net property income 416 399 4.3%
Office 130 122 6.6%
Industrial 286 277 3.2%
Average exchange rate R8.79/AUD (Dec 2011: R7.84/AUD) for GOZ
66
Total
GLA
(m²)
Vacant
(m²) Vacancy
Balance at 1 Jul 2012 900 676 2 291 0.3%
GLA adjustments 524 -
Acquisitions, developments and extensions 28 601 -
Leases expired in the period - 4 779
Balance at 31 Dec 2012 929 801 7 070 0.8%
ANNEXURE 19 – GLA AND VACANCY RECONCILIATION GOZ
572-576 Swan St, Richmond, VIC 33-39 Richmond Road, Keswick, SA
67
ANNEXURE 20 – LEASE EXPIRY BY SECTOR GOZ
% of GLA % of gross monthly rental
Office
Industrial
3 6 6
10 7
17
51
1 5
2
11
81
0
10
20
30
40
50
60
70
80
90
100
3 5
8
14
8
16
46
1 4
1
9
85
0
10
20
30
40
50
60
70
80
90
100
% %
68
ANNEXURE 21 - SPLIT OF V&A PROPERTY PORTFOLIO
Property portfolio
by value
Property portfolio
by GLA
Developed vs
undeveloped by value Net property
income
Developed
Undeveloped
Bulk
Retail
Office
Fishing & Industrial
Hotel
Retail
Office
Fishing & Industrial
Hotel
55%
17%
7%
9%
12%
88%
12%
22%
25% 31%
22%
52%
25%
10%
13%
69 ANNEXURE 22 – NET PROPERTY INCOME ANALYSIS V&A (50%)
Dec 2012
R’ million
Dec 2011
R’ million
Increase/
(Decrease)
Gross property revenue 213 201 6.0%
Property expenses (58) (55) (5.5%)
Net property income 155 146 6.2%
The distribution received from the V&A Waterfront is R150m (Dec 2011: R140m), which is the net property income of R155m (Dec 2011: R146m),
after the operating expenses of R12m (Dec 2011: R12m), net finance income of R8m (Dec 2011: R7m) and taxation of R1m (Dec 2011: R1m).
70 ANNEXURE 23 – GLA AND VACANCY RECONCILIATION V&A (50%)
GLA
(m²)
Vacant
(m²) Vacancy
Balance at 1 Jul 2012 192 085 3 088 1.6%
GLA adjustments 1 699 (79)
Developments and extensions 1 778 -
Leases expired in the period * 3 612
Renewals of expired leases ** (2 572)
New letting of vacant space (3 019)
Leases terminated 645
Balance at 31 Dec 2012 195 562 1 675 0.9%
* 1.9% of opening balance GLA expired during the period under review
** Retention of 71.2% for the period to Dec 2012
71
ANNEXURE 24 – LEASE EXPIRY BY SECTOR V&A
% of GLA % of gross monthly rental
Retail
Office
Fishing & Industrial
Hotel
% %
1
19 17
13 12
17
22
2
24
11
6
13
6
38
1
15
84
100
0
10
20
30
40
50
60
70
80
90
100
18 16 15 15 16
20 19
5 2
9
4
61
2 1
34
64
100
0
10
20
30
40
50
60
70
80
90
100