ESG at Growthpoint Werner van Antwerpen and Natalie van der Bijl - - PowerPoint PPT Presentation

ESG at Growthpoint

Werner van Antwerpen and Natalie van der Bijl

Introduction to Growthpoint Business Model INVEST

Make strategic investments, through acquisition and development, that improve the overall quality of the portfolio and ensure long-term capital appreciation

FINANCE

Access all available sources of funding to minimise cost

• f capital while maintaining appropriate gearing levels

OWN

Own well located investments comprising a quality portfolio of office, industrial and retail properties

EARN RENTAL

Earn sustainable rental income by providing quality accommodation to a large and diverse base of financially sound tenants that are secured by long-term efficiency

MANAGE

Manage the assets and invest the capital necessary to ensure the properties are well-maintained and that they

• perate at optimum efficiency

DISTRIBUTE EARNINGS

Grow income to distribute dividends bi-annually to shareholders

Introduction to Growthpoint

29th

largest company on the JSE – market capitalisation R71,7 bn

#1

largest South African REIT

700 STAFF

internally managed company

50%

• wnership in V&A Waterfront

65%

• wnership in Growthpoint Australia

5 YEARS

inclusion in JSE SRI Index

RETAIL

R28,2 bn 58 properties

OFFICE

R33,0 bn 184 properties

INDUSTRIAL

R10,4 bn 229 properties

AUSTRALIA

R22,0 bn 53 properties

V&A WATERFRONT

R6,8 bn

TOTAL

R100,4bn* 525 properties

4th YEAR

participating in CDP

2nd YEAR

included in the DJSI

1st YEAR

participating in GRESB

*Includes 100% of GOZ and 50% of V&A; excludes Stor-Age

Highlights

173,4 CENTS

7.5% GROWTH

distribution per share

R18,6 bn

Value of Acucap and Sycom properties acquired

31.9% TOTAL RETURN TO GRT

• GOZ

11.7% income yield 20.2% capital growth

14.0 TOTAL RETURN

7.0 % income yield 7.0% capital growth

R607 m ADDITIONAL INVESTMENT IN GOZ

R5,9 bn total cost R10,9 bn market value

R4,2 bn

acquisition and development pipeline

R4,2 bn

Annual distribution income

R2,6 bn NEW EQUITY RAISED VIA DRIP

54.6%

Shareholder participation

Growthpoint, an investment

• pportunity

Included in the JSE Top 40 Index Top ten constituent of the FTSE EPRA NAREIT emerging Index Proven management track record Consistent record of growth and creating value for investors Underpinned by high-quality, physical property assets, diversified across sectors (Retail, Office and Industrial) Consistent record of growth and creating value for investors with 7.4% compound average annual growth in distributions over the past 5 years Sustainable quality of earnings that can be projected with a high degree of accuracy

Growthpoint’s journey

2010 2015

R36 bn In property assets R100 bn R24 bn Market cap R72 bn 121,2 cents Distribution per share 173,4 cents 1 552 cents Share price 2 646 cents 1 365 cents NTAV per share 2 328 cents 431 Properties* 525

• First issue of short-term commercial paper
• 3rd year most empowered property company
• n JSE
• Only 2 properties acquired for R152 m
• Moody upgrade Baa2
• Successful integration of Acucap and Sycom
• Winner of IAS Excellence in financial reporting

and communications

• Rebranded space to thrive
• 49 properties acquired for R20 bn

452 Staff 700

Environmental

Founding member of GBCSA

Continued involvement in with the organisation

Member of SAPOA

Working with partners on industry specific issues

Participant on various disclosure platforms

DJSRI, CDP, GRESB, JSE SRI

Member of NBI

Project partners and contributing to the energy discussion

Environmental – Focus Areas

Strategic Levers

Value Creation Through Sustainability Utilities Management Consumption Efficiency Renewable (Energy mix) Sustainable Development

• Making sure we bill our

tenants accurately.

• Reducing operational

cost for our tenants.

• Incorporating

renewable energy strategies in our buildings.

• Making sure our new

and existing buildings adhere to the quality standards set out by the GBCSA.

• Educating and

mitigating risks for

• ur clients from an

environmental sustainability perspective.

Value Creation

Strategic

SOLAR

Some Key Interventions

Environmental – Electricity Price Increase

Electricity cost/m2 for a large commercial tenant in Johannesburg

*Data supplied by Remote Metering Solutions (RMS)

ENERGY = 5 WATER = 3

10 5

CARBON NEUTRAL POOR BENCHMARK

10 5 10 5

IMPROVING EFFICIENCY IN ALL OUR BUILDINGS TO BE AT LEAST ON PAR

Illustrative

EWP Rating GLA Vacancy Water or Electricity data for 12 Months Occupational Hours Number of people in the building Number of computers Where the building is located in South Africa

Environmental – Energy Benchmark Office Buildings

1 2 3 4 5 6 7 8 9 10 20000 40000 60000 80000 Energy Rating Gross Lettable Area (GLA m2) CPT JHB & PTA DBN

Environmental – Energy Benchmark Office Buildings

ENERGY (END DEC 2013)

POOR GOOD

ENERGY (END JUN 2015)

1 2 3 4 5 6 7 8 9 10 20000 40000 60000 80000 Energy Rating Gross Lettable Area (GLA m2) CPT JHB & PTA DBN

POOR GOOD

*Excluding Tiber, Equity and Acucap

Average Energy rating = 6.01 Average Energy rating = 6.55

1 2 3 4 5 6 7 8 9 10 20000 40000 60000 80000 Energy Rating Gross Lettable Area (GLA m2) CPT JHB & PTA DBN EQUITY & TIBER 1 2 3 4 5 6 7 8 9 10 20000 40000 60000 80000 Energy Rating Gross Lettable Area (GLA m2) CPT JHB & PTA DBN

ENERGY (END DEC 2013)

POOR GOOD

ENERGY (END JUN 2015)

POOR GOOD

*Excluding Acucap

Average Energy rating = 6.01 Average Energy rating = 6.00

Environmental – Energy Benchmark Office Buildings

Environmental – Solar Installations

Infotech – Pretoria 96kWp Lincoln on the Lake – Durban 44kWp Waterfall Mall – Rustenburg 574kWp

Over 70 buildings identified and 12 currently under investigation

North Gate Mall - JHB 1.16MWp

APPROVED

Airport Industria - CPT 291kWp

APPROVED

Environmental – What is a Green Building?

THE GBCSA RATING TOOLS CONSIST OF NINE CATEGORIES Each category consist of several sub sections Focus areas within the rating will be building specific

• Management
• Indoor

Environment Quality

• Energy
• Transport
• Water
• Materials
• Land use &

Ecology

• Emissions
• Innovation

Rating

Category Scores Environmental Weightings Single Score

23 Green Star rated buildings

Some of our Successes to Date

Environmental – Our Rated Buildings

Company

• No. of ratings

Growthpoint Properties Limited 23 Redefine Properties 10 Melrose Arch Investment Holdings 6 V & A Waterfront Holdings 5 Attacq LTD 4 FNB First Rand 4 Nedcor Properties Ltd 4 Rabie Property Group 4 Zenprop Property Holdings 4

Kirstenhof Building – 5 Green Star Existing Building 100th Green Star Rated building in South Africa

*GBCSA – Rated buildings as of June 2015

Environmental

In association with

Governance

Listed in 1987

Independent governance journey since 2007

SA REIT

Previously Property Loan Stock Association Driver of legislative dispensation for SA REITs

Adherence to regulation and best practice

JSE Listing Requirements applicable to REITs

Policies

Continual assessment and development

Tax Act 25bb

Working with National Treasury

Social

Aligned with the core business

Spent just short of R15m in the FY15

Infrastructure

Various projects Solar projcect

Entrepreneurship

Property Point

Education

Growsmart Bursary programmes

Rental subsidies

Currently 5 beneficiaries

Staff engagement

HALO G2

Social

Policies

Ccontinual assessment and development

Health and Safety

Internal focus and work closely with external partners

Transformation

Level 3 BBBEE Rating

Employee Development and Training

Excess of R6 million spent on staff

Adherence to regulation and best practice

Adhere and implements best practices where applicable

Employee Wellness

Ongoing support to staff

2014

SOME OF OUR SUCCESSES TO DATE

BEST REPORTING AND COMMUNICATION AWARD, SECTOR WINNER, PROPERTY FOR THE 2014 FINANCIAL

2014

OVER ALL WINNER –2013 FINANCIAL YEAR

Participant in CDP since 2011

World Economic Forum Global Growth Company 2014

LUX 2014 Project of the Year award for the low-energy lighting installation program

Included in the JSE SRI Index 2014

2014 Overall Green Award for No. 1 Silo, V&A Waterfront

European Community Support Award for Growsmart

Overall winner of the 2015 IPD Direct Property Investment Award Awarded top performing Property fund over 3 years to December 2013

Finalist for The Eco-Logic Awards 2014 - Energy Reduction The Eco-Logic Awards 2014 - Certificate of merit for the category Recycling

Thank You