Interim results for the period ended 31 December 2014 Introduction - - PowerPoint PPT Presentation

Interim results

for the period ended 31 December 2014

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Introduction

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Introduction to Delta International

• First African (excluding South Africa) focused property fund listed on the JSE
• Offers investors exposure to USD yielding investment without the use of foreign

exchange allowance

• Primary listing on the Bermudan Stock Exchange with a secondary listing on the JSE

AltX*

• Two properties valued at US$150.4 million**
• Market capitalisation – US$87.6 million
• Management team with extensive Africa experience and relationships
• In country asset and property management teams
• Strong acquisition pipeline
• Property portfolio (current and pipeline) underpinned by long term leases with strong

counterparties

*The Company is currently in the process of migrating its primary listing to the Stock Exchange of Mauritius (expected to be completed by mid February 2015) and intends to transfer from the JSE AltX to the JSE Main Board (expected to be completed early March 2015). ** At period ended 31 December 2014. The Hollard Building valued at US$14.5 million transferred on 23 January 2015

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Corporate structure

Delta International Property Holdings Limited (Mauritius GBC1) (BSX and JSE AltX listed) Delta International Mauritius Ltd Operating Company (Mauritius GBC1) Freedom Property Fund SARL (Moroccan Company) Anfa Place Shopping Centre Casablanca, Morocco Commotor Limitada (Mozambican company) Freedom Asset Management Asset Managers (Mauritius GBC1) Delta International Bahrain (Bahrain Company) 100% 100% 100% S&C Immobiliaria Limitada (Mozambican company) 100% Hollard Building Vodacom Building Maputo, Mozambique Anadarko Building Maputo, Mozambique HM & K Properties Limited (Mauritian company) SAL Investment Holdings Limited (Mauritian company) 100% DIF 1 Limited Operating Company (Mauritian company) 3% 5% 95% 95% 100%

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Highlights

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Highlights for the interim period under review

• Maiden dividend – US$6.63 cents per share declared for the interim period ended 31

December 2014

• Total investment property - US$150.4 million (Morocco: US$112.9 million and Mozambique:

US$37.5 million)

• Portfolio occupancy – 92.8% (Anadarko Building – 100% occupancy)
• Market capitalisation – US$87.9 million
• Hollard Building – transferred into fund on 23 January 2015
• Vodacom Building – on track to transfer into the fund within current financial year

strengthening the Mozambican property asset base

• Access to a high quality acquisition pipeline

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Shareholder profile – top 5 shareholders

As at 31 December 2014 Units held Holding Delta Property Fund 22 814 372 51.09% Bowwood and Main No 117 5 746 061 12.87% RMB Securities 3 386 211 7.58% Eskom Pension and Provident Fund 1 253 090 2.81% Clucasgray Future Titans Prescient 797 088 1.78% Subtotal 33 996 822 76.13% Other 10 659 625 23.87% Total 44 656 447 100.00%

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Financial review

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Financial overview

31 December 2014 USD Distribution per linked unit 6.63 Cost to income ratio 24.4% Gearing level 49.48%* Net asset value per linked unit (excl deferred tax) 211.1 Weighted average rental/m² US$25.11 Average escalation 6.31%

*includes debt on deposits paid in respect of the acquisition of the Vodacom and Hollard Buildings

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Distributable income statement

31 December 2014 USD ’000 Net property income 5 166 Rental income 6 837 Property operating expenses (1 671) Other income 66 Administrative expenses (572) Net finance costs (1 683) Disposal of investment in subsidiary

• Realised foreign currency gain

516 Retained profit not distributed

• Taxation

(530) Distributable income / (loss) for the period 2 963 Number of linked units in issue 44 656 447 Dividend per share (cents) 6.63 Cost to income % 24.4%

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Consolidated property portfolio

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Delta International at a glance

31 December 2014 Market capitalisation US$87.9 million Number of properties 2 Location of properties Morocco and Mozambique Geographic spread Pan Africa (excluding South Africa) Valuation of the property portfolio US$150.4 million Gross lettable area 38 516m2 Sectoral profile (by revenue) Retail: 72%; Office: 28% Occupancy rate 92.6% Weighted average rental / m2 US$25.11 Weighted average escalation 6.31% Gearing levels c.49.48% loan to value Funding costs Average all-in rate of c.6.33% Currency Reporting currency - US$

Mozambique assets – US$ Moroccan asset – Moroccan Dirham

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Anfa Place Shopping Centre

Location: Casablanca, Morocco Anchor tenant: Label Vie (Carrefour) Purchase price: MAD 945 000 000 Acquisition yield: 7.54% GLA: 30 711m2 Parking bays: 1 148 Anchor lease term: 3 + 3 + 3 years Anchor tenant lease expiry: June 2021 (lease can be cancelled

with 6 months notice at the end of each 3 year period)

Weighted average escalation: 6.9% Vacancies: 9.33% Average rental: US$28.25 (incl recoveries) US$21.63 (excl recoveries)

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Anadarko Building

Location: Maputo, Mozambique Anchor tenant: Anadarko Petroleum Purchase price: US$ 32 500 000 Acquisition yield: 10.42% GLA: 7 805m2 Parking bays: 185 Anchor lease term: 15 years Anchor tenant lease expiry: May 2025 Weighted average escalation: 4.0% Vacancies: 0% Average rental: US$43.72 (incl recoveries) US$38.78 (excl recoveries)

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Geographic profile – Gross rental

Analysis of the property portfolio

Sectoral profile - GLA Geographic profile - GLA Sectoral profile – Gross rental

80% 20% Casablanca, Morocco Maputo, Mozambique 80% 20% Retail Office 72% 28% Casablanca, Morocco Maputo, Mozambique 72% 28% Retail Office

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Analysis of the property portfolio (cont.)

Lease expiry profile – by GLA Weighted average rental escalation Lease expiry profile – by rental income Weighted average rental per m2 (US$)

6.90% 4.00% 6.31% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Retail Office Total 21.63 38.78 25.56 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 Retail Office Total 0.0% 2.4% 0.0% 0.0% 0.2% 0.0% 97.4% 0% 20% 40% 60% 80% 100% 2014 2015 2016 2017 2018 2019 2020+ % of rental income 0.0% 34.0% 0.0% 0.0% 1.7% 0.0% 64.3% 0% 20% 40% 60% 80% 100% 2014 2015 2016 2017 2018 2019 2020+ % of GLA

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Post review period acquisitions – Vodacom Building

Location: Maputo, Mozambique Anchor tenant: Vodacom Group Limited Purchase price: US$ 49 000 000 Acquisition yield: 6.97% GLA: 10 659m2 Parking bays: 336 Lease term: 10 + 10 years fully maintaining lease Anchor tenant lease expiry: April 2019 (initial 10 year period expiry) Weighted average escalation: 5% Vacancies: 0% Average rental: US$27.89 (incl recoveries) US$27.83 (excl recoveries)

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Post review period acquisitions – Hollard Building

Location: Maputo, Mozambique Anchor tenant: KPMG, BP, Hollard Insurance Purchase price: US$ 14 050 000 Acquisition yield: 10.43% GLA: 4 945m2 Parking bays: 98 Anchor lease term: KPMG: 10 years BP: 5 years Hollard: 10 years Anchor tenant lease expiry: KPMG: February 2018 BP: February 2018 Hollard: February 2023 Weighted average escalation: 4.1% Vacancies: 0% Average rental: US$27.43 (incl recoveries) US$24.17 (excl recoveries)

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Challenges and prospects

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Prospects

• To ensure the sustainability of the current property portfolio
• Complete the acquisition of the Hollard and Vodacom Buildings respectively within

the current financial reporting period

• Extend its property base in Mozambique through the pre-commitment of the phase 2

development of the Anadarko Building

• Continue to build on a strong acquisition pipeline and the Fund’s investment strategy

Thank you