ANNUAL RESULTS for the year ended 30 June 2015 STRATEGIC & OPERATIONAL OVERVIEW Hyde Park Corner, Johannesburg, Gauteng 2 1
FINANCIAL HIGHLIGHTS 30 June 2015 30 June 2014 Change Distribution 543,0 cps 472,0 cps 15,0% Total return 59,0% 8,0% Total expense to income ratio 36,0% 37,3% (3,3%) Market capitalisation R29,4bn R19,3bn 52,2% Total assets R28,9bn R26,9bn 7,4% Loan to value 22,9% 26,6% NAV (per share) R89,04 R76,02 17,1% 3 DISTRIBUTION GROWTH Cents per share 700 15,0% 600 543,0 11,3% 6,0% 472 500 9,9% 424 400 400 16,3% 13,7% 13,1% 9,5% 280,3 7,5% 300 4,5% 262,7 10,4% 9,4% 241 231 213 211 202 198 200 100 0 2012 2013 2014 2015 1st Half 2nd Half Total % growth 4 2
SHARE PRICE PERFORMANCE 1,6 Hyprop SAPY 1,5 June June 2015 2014 1,4 % shares traded 73,0% 50,4% 25,0% 8,5% % offshore shareholders 1,3 1,2 1,1 Q4: 92,8 million* 1,0 Q3: 41,0 million* Q1: 28,5 million* Q2: 15,3 million* 0,9 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2014 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2015 * Number of shares traded per quarter 5 PORTFOLIO MANAGEMENT Developments completed West Hills Mall – total cost of R462m Rosebank Mall - total cost of R932m Disposals CapeGate Lifestyle, CapeGate Value Centre and Stoneridge - total proceeds of R833m Energy Clearwater Mall’s phase 2 - solar photovoltaic plant - completed August 2015 The total size (phase 1 and 2) is 1 500kW at peak, with generating capacity of 2,5GWh per annum 6 3
COMPANY STRUCTURE SOUTH AFRICA Hyprop Investments Limited 100% owned Co-owned Held for sale/sold Clearwater Mall Willowbridge Canal Walk (80%) Rosebank Mall Somerset Value Mart The Glen Somerset Mall Offices: (75,15%) Glenfield Glenwood Woodlands Boulevard Lakefield Hyde Park Corner Stoneridge (Sold) CapeGate CapeGate Lifestyle (Sold) Atterbury Value Mart 7 COMPANY STRUCTURE SUB-SAHARAN AFRICA Hyprop Investments Limited 100% owned Hyprop Investments Mauritius 37,5% 50% 50% AttAfrica Manda Hill (Mauritius) (Zambia) 45% 75% 47% 75% Accra Mall West Hills Achimota Mall Kumasi City Mall (Ghana) (Ghana) (Ghana)* (Ghana) * Under development 8 4
INVESTMENT PROFILE Investments Distributable income Held for sale R1,2bn Held for sale R104,8m Properties sold R51,4m Sub-Saharan Africa (excluding SA) R2,3bn 2,9% Sub-Saharan Africa 2,4% 4,3% 5,8% (excluding SA) 8,2% R42,4m* 87,5% 88,9% Core South African Core South African portfolio portfolio R25,0 bn R1,6 bn * After finance costs 9 OPERATING PERFORMANCE Rosebank Mall, Johannesburg, Gauteng 10 5
OPERATING PERFORMANCE Occupancy rate improved to 98,0% (June 2014: 97,6%) Property cost to income ratio reduced to 33,6% (June 2014: 34,4%) Arrears R19,4 million ‒ 0,6% of rental income (June 2014: R19,2m ‒ 0,5% of rental income) Low impact from load shedding Strong performance from Rosebank Mall Improved tenant mix at Hyde Park Corner Rosebank Mall & Hyde Park Corner, Johannesburg, Gauteng 11 TRADING OVERVIEW 12% Trading density growth Rent ratio (rental as % of turnover) 10% Vacancies 8,0% 7,8% 8% 7,4% 7,1% 7,0% 7,0% 7,0% 6,9% 6,9% 6,8% 6% 2 nd half 7,9% 4% 3,4% 3,30% 2,7% 2,4% 2,0% 2% 1 st half 6,9% 0% Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 12 6
VACANCIES Vacancies 30 June 2013 30 June 2014 30 June 2015 Retail 2,1% 1,2% 1,3% Offices 8,1% 13,8% 8,3% Total 2,7% 2,4% 2,0% 20% Retail Offices Total 13,8% 15% 10% 8,3% 8,1% 5% 2,7% 2,4% 2,1% 2,0% 1,2% 1,3% 0% 30 Jun 2013 30 June 2014 30 June 2015 13 LEASING TERMS 12% Rental growth Contractual escalation 10% 8,8% 8,3% 8,2% 8,2% 8,0% 7,6% 8% 7,4% 6,3% 6% 4,3% 4% 3,4% 2% 0% 2011 2012 2013 2014 2015 14 7
LEASING ACTIVITY Rental Contractual % of total Area growth escalation No. of Leasing portfolio m² % % leases Retail 20,3% 143 240 8,1% 8,2% 486 Offices 43,9% 33 111 2,5% 8,1% 90 Total 22,6% 176 350 7,6% 8,2% 576 15 LEASE EXPIRY PROFILE 2015 / 2016 Total % Rentable rentable Area area of Retail area m² m² centre Canal Walk 146 599 46 461 32% The Glen 79 665 17 172 22% Willowbridge 39 904 15 258 38% Somerset Mall 66 354 13 431 20% Cape Gate Mall 63 700 13 046 20% Atterbury Value Centre 47 785 9 278 19% Clearwater Mall 86 081 7 228 8% Hyde Park Corner 27 929 5 681 20% Rosebank Mall 62 410 4 753 8% Somerset Value Mart 12 546 3 900 31% Woodlands Boulevard 71 659 2 508 3% Retail 704 632 138 716 20% Offices 75 440 13 924 18% Portfolio Total 780 072 152 640 20% 16 8
DEVELOPMENTS Focus on continuous improvements /refurbishments – R180m for 2016 Woolworths extensions: Canal Walk completed within budget Somerset Mall to be completed in October 2015 Clearwater Mall refurbishments and extensions to accommodate international fashion brands Including H&M, River Island and Top Shop Total cost of R36,6 million Equipment replacement – R93m for 2016 New generators at Hyde Park Corner Hyde Park Corner, Johannesburg, Gauteng 17 INVESTMENT IN SUB-SAHARAN AFRICA (excluding SA) West Hills Mall, Accra, Ghana West Hills Mall, Accra, Ghana 18 9
INCOME PRODUCING PROPERTIES 12 months 12 months Hyprop's 30 June June 2015 June 2014 Rentable effective 2015 Distributable Distributable area shareholding Investment earnings* earnings* m² % R'000 R'000 R'000 AttAfrica (Mauritius) Accra Mall (Accra, Ghana) 19 000 17,6% 229 659 7 726 6 525 West Hills Mall (Accra, Ghana) 27 500 16,8% 461 926 6 695 Manda Hill (Lusaka, Zambia) 44 000 68,8% 984 710 30 657** 30 308** Expenses 46,403 (2 710) (1 755) 90,500 1 722 698 42 368 35 078 Loans advanced to AttAfrica for developments (not yet income producing) 528 652 Capitalised interest 81 033 Other 6 738 Total investment 2 339 121 * After interest on funding costs in Hyprop Investments Mauritius ** Effective interest in Manda Hill reduced from 87,0% to 68,8% on 1 July 2014 19 DEVELOPMENT PROPERTIES Hyprop’s Hyprop’s Rentable effective effective area shareholding cost Centre name m² % USD’000 Comments Achimota Mall Under construction 14 624 28,1 15 178 (Accra, Ghana) Opening October 2015 Kumasi City Mall Under construction 18 360 28,1 40 026 (Kumasi, Ghana) Opening April 2017 Waterfalls Project 9,4 1 031 Land holding Lusaka, Zambia) 20 10
CURRENCY Performance of currencies over one year against USD 1,3 30% 23% 1,2 20% 1,1 4% 1,0 0,9 0,8 SA Rand Zambian Kwacha Ghanian Cedi Nigerian Niara 0,7 One year 21 FINANCIAL RESULTS The Glen, Johannesburg, Gauteng 22 11
NET INCOME YEAR-ON-YEAR CHANGE R’000 1 500 000 43 370 7 290 1 400 000 86 363 1 319 619 (37 265) (15 694) (11 475) 1 300 000 (2 091) 100 521 1 200 000 1 148 600 1 100 000 1 000 000 30 Jun Existing Rosebank Somerset Sub- Sycom Net Properties Other 30 June 2014 portfolio Mall Mall Saharan interest sold 2015 Africa (excl. SA) 23 NET INCOME DRIVERS OF GROWTH Rbn 30 June 2014 30 June 2015 13,3% 2,0 13,1% 1,743 7,7% 1,701 8,1% 1,551 1,539 1,504 14,9% 1,441 1,5 1,392 1,320 1,288 ** * 1,149 1,0 0,5 0,0 Investment property Add Somerset Mall Add Rosebank Mall Add Sub-Saharan Africa Add net interest income (excluding SA) and other * Excludes Somerset and Rosebank Malls ** 2014 includes Sycom 24 12
INCOME STATEMENT EXTRACTS 30 June 2015 30 June 2014 Rm Rm Revenue 2 617 2 392 Investment property 2 617 2 355 11,2% Listed investments 37 Property expenses (865) (821) 5,4% Net property income 1 752 1 571 11,5% Other operating expenses (58) (56) 3,9% Operating income 1 694 1 515 11,8% Investments in sub-Saharan Africa (excluding SA) 42 35 Net income before interest 1 736 1 550 12,0% Net interest (417) (401) 3,9% Net income 1 319 1 149 14,9% No of shares for distribution (000) 242 990 243 102 Distribution per share (cents) 543,0 472,0 15,0% 25 BALANCE SHEET EXTRACTS 30 June 2015 30 June 2014 Rm Rm Investment property 25 003 24 081 3,8% Investments in sub-Saharan Africa 187,9% 2 339 812 (excluding SA) Held for sale 1 235 1 705 Other assets 279 267 Total assets 28 856 26 865 7,4% Total debt 6 692 7 199 (7,0%) Net asset value per share (R) 89,04 76,02 17,1% 26 13
PROPERTY VALUATIONS SOUTH AFRICAN PORTFOLIO Hyprop % change Size share (from Value Average Category m² Rm June 2014) R/m 2 yield % Shopping centres 642 978 23 791 13,0% 40 816 6,8% Value centres* 102 709 1 927 2,3% 18 762 8,3% Stand-alone offices 34 386 509 11,3% 14 796 9,1% Total 780 072 26 226 12,1% 6,9% * Excludes Stoneridge and CapeGate Lifestyle 27 DEBT MANAGEMENT Borrowings 30 June 2015 30 June 2014 Total debt R6,7bn R7,2bn Loan to value 22,9% 26,6% Debt at fixed rates 94,5% 71,4% Average fixed rate / swap maturity 5,2 4,2 Debt capital market (DCM) % of total debt 32% 32% Cost of funding 7,1% 7,5% 28 14
SOURCES OF FUNDING R million 2 327 35% Bank facilities (SA) 3 509 49% 2 193 33% Bank facilities (USD) 1 393 19% 30 June 2015 2 172 32% 30 June 2014 DCM funding (SA) % of total debt 2 297 32% 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 29 COST OF FUNDING Average interest rate 30 June 2015 30 June 2014 Total debt 7,1% 7,5% SA debt 8,4% 8,2% USD debt 4,4% 4,6% 30 15
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