Rent-to-sales ratio by Top 15 properties INTRODUCTION Continuing to provide very profitable centres for our tenants SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 10.6% PROPERTIES OVERVIEW CASTELLANA 7.7% 7.6% 7.6% 6.7% 6.7% 6.4% 6.0% 5.9% FINANCIAL PERFORMANCE DEBT, TREASURY AND 5.5% 5.0% 4.9% 4.8% 4.6% 4.4% 4.0% STRATEGIC PLANS AND PROSPECTS East Rand Phoenix Plaza Randburg Pine Crest Bloemfontein Thavhani Mall Maluti Oshakati Kolonnade Moruleng Nonesi Mall Daveyton Gugulethu Meadowdale Dobsonville Southern Q&A Mall Square Centre Plaza Crescent Shopping Retail Park Mall Shopping Square Mall Mall African Centre Centre Average APPENDICES Township Rural Urban 12
Retail insights INTRODUCTION Defensive portfolio with further potential for rental growth Segment Focus SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Rural and township centres that account for 53% of the portfolio value showed a year-on-year trading density growth of 3.2% The low rent to sales ratio of 5.1% in the rural and township centres creates an opportunity for further rental growth Overall rent to sales improved marginally from 6.0% to 5.9% which augurs well for further portfolio growth Rural and township centres are seeing an increase in diversity of the tenant mix through rightsizing of suites PROPERTIES OVERVIEW Groceries (23% exposure) grew by 4.0% and 13 out of the 14 tenant categories showed growth, with only department stores growing at (1%) CASTELLANA Overall trading densities are up 3.5% over the past year, as compared to 1% in the preceding period Growth has been driven by an improved performance of fashion, supermarkets, health and beauty, sporting goods, bottle stores and accessories, all which form a significant portion of the Township and Rural portfolio’s tenant mix FINANCIAL PERFORMANCE DEBT, TREASURY AND Segmental Profile - by Value Segmental Profile – Trading Statistics Year-on-year growth 1.8% (3.8%*) Year-on-year growth Rent to sales 4.9% By Value Year-on-year growth 4.2% (7.8%*) STRATEGIC PLANS AND PROSPECTS 4.0% (5.2%*) Rent to sales 5.3% 47% Urban Rent to sales 7.0% Rural and Township 29% Rural R25 116/m² R30 465/m² R39 450/m² 53% 24% Township Q&A APPENDICES Urban Rural Township * Year on year growth including asset management intervention shown in brackets 13
Retail category performance INTRODUCTION Increased exposure to strong performing health and beauty and second tier fashion tenants Decreased exposure to challenged department stores, restaurants and medical SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW R60 000/m² Food 2.5% Cell Phones PROPERTIES OVERVIEW Bottle Stores 1.4% Grocery/ Supermarket R50 000/m² Average annual trading density 7.1% 4.0% CASTELLANA Electronics 0.7% R40 000/m² Restaurants & Coffee Shops Health & Beauty Sporting/ Outdoor Goods & Wear 0.9% 12.2% FINANCIAL PERFORMANCE R30 000/m² 6.0% DEBT, TREASURY AND Department Stores (>5k sqm) (1.0%) R20 000/m² Department Stores (<5k sqm) Home Furnishings/ Art/ Antiques/ Décor 5.4% Other R10 000/m² 0.7% STRATEGIC PLANS 3.9% Fashion AND PROSPECTS 1.6% R0/m² Q&A -R10 000/m² (5.0%) (3.0%) (1.0%) 1.0% 3.0% 5.0% 7.0% 9.0% 11.0% 13.0% 15.0% APPENDICES Average annual trading density growth 14
Tenant affordability INTRODUCTION Rent to sales holding steady across the portfolio through tough market conditions over the past 3 years SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 11.7% Average annual rent-to-sales ratio PROPERTIES OVERVIEW 9.6% CASTELLANA 9.0% 9.0% 8.7% 6.9% FINANCIAL PERFORMANCE 6.0% 6.0% 5.9% 5.9% 5.9% 5.9% DEBT, TREASURY AND 5.3% 5.2% 5.1% 5.1% 4.8% 4.8% 4.1% 4.0% 3.9% STRATEGIC PLANS AND PROSPECTS Regional Shopping Stand Alone Unit Small Regional Value Centre Community Shopping Neighbourhood Total Q&A Centre Shopping Centre Centre Shopping Centre APPENDICES Sep 2017 Sep 2018 Sep 2019 15
Tenant affordability INTRODUCTION Consistently strong metrics Retail Vacancy Profile by GLA Retail Average Base Rentals (excl. Recoveries) SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 139.26 134.78 130.44 122.88 3.9% 3.8% 114.61 108.14 3.5% 3.3% 3.0% 2.8% PROPERTIES OVERVIEW CASTELLANA 2015 2016 2017 2018 2019 Sep 19 2015 2016 2017 2018 2019 Sep 19 FINANCIAL PERFORMANCE DEBT, TREASURY AND Retail Contractual Escalations Retail Rent Reversions 10.8% 12.3% 6.9% 5.2% 4.5% 1.9% 7.6% 7.5% 7.3% 7.1% 7.0% 7.0% 7.0% 12% 11% 12% 12% 15% 18% 5% Number of leases 6% 6% 11% 18% 10% STRATEGIC PLANS 84% AND PROSPECTS 82% 79% 77% 72% 70% Q&A 2015 2016 2017 2018 2019 Sep 19 Recent New 2015 2016 2017 2018 2019 Sep 19 Leases and APPENDICES Positive reversions Flat reversions Negative reversions Renewals 16
Operational capital expenditure INTRODUCTION Continued investment in assets and statutory compliance Framework and knowledge base SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW − Bottom up building condition assessments complete on all assets within the portfolio − Includes spend in respect of preventative, rehabilitation and replacement capital − Buildings assessed on 132 elements covering structure, internal/external works and OHS act requirements PROPERTIES OVERVIEW CASTELLANA Key figures − Five year rolling budget totalling c.R70m per annum FINANCIAL PERFORMANCE DEBT, TREASURY AND − 2021FY compliance aspects estimated at R65m − 2021FY income enhancing maintenance projects estimated at R10m 0.6% 0.5% 0.5% 0.5% 0.4% STRATEGIC PLANS AND PROSPECTS Q&A APPENDICES 2021FY 2022FY 2023FY 2024FY 2025FY Capital expenditure as % of current portfolio value 17
Effective brownfields investments INTRODUCTION Value add of recent redevelopment projects Average annual Average 3-year historical value density escalation net operating income SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW since redevelopment completion growth 6.2% 5.0% PROPERTIES OVERVIEW CASTELLANA 9.3% 5.3% FINANCIAL PERFORMANCE DEBT, TREASURY AND 17.6% 8.5% STRATEGIC PLANS AND PROSPECTS 11.4% 7.3% Q&A APPENDICES 6.2% 9.2% 18
Extension and upgrade INTRODUCTION Pine Crest Shopping Centre, Pinetown, KZN Upgraded centre relaunched 25 July 2019 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW New mall on Kings Road and Food Court with R200m 20 new brands 5% comparable turnover growth with 20% growth Total Capex overall since relaunch PROPERTIES OVERVIEW Increased dwell times with entertainment and CASTELLANA pause areas 7.4% Go Durban rapid transport soon to be opened Focus on brand awareness and customer relations FINANCIAL PERFORMANCE Projected yield DEBT, TREASURY AND on Capex Key Metrics Additional GLA 3 327m² Commencement Date April 2018 10.2m STRATEGIC PLANS AND PROSPECTS Completion Date July 2019 Footfall Trading density R28 986/m² pa Q&A APPENDICES 19
New acquisition INTRODUCTION Mdantsane City Shopping Centre, Mdantsane, Eastern Cape Dominant asset located in Mdantsane, one of the SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW largest townships in South Africa. It is situated on R516.5m the main arterial route through Mdantsane. Mdantsane City has over 90 shops with upside asset management and expansion potential. It has Acquisition Price a high national tenant component of 78% PROPERTIES OVERVIEW CASTELLANA Key Metrics 78% GLA 36 265m² FINANCIAL PERFORMANCE National and DEBT, TREASURY AND Catchment 156 000 people International Brands Trading density R28 000/m² pa Rent to sales ratio 4.70% 9.6m STRATEGIC PLANS AND PROSPECTS Average Rent R125.80/m² Footfall Purchase Date 15 November 2019 Q&A APPENDICES 20
Acquisitions and sales INTRODUCTION Transferred during the year SOUTHERN AFRICAN RETAIL Date of transfer PORTFOLIO OVERVIEW Property acquired Location Sector Price R'm Mdantsane City Shopping Centre Mdantsane, Eastern Cape Retail 516.5 Nov-19 PROPERTIES OVERVIEW Property sold Location Sector Price R'm Date of transfer CASTELLANA Sandton Linbro Galaxy Drive Sandton, Gauteng Motor 17.4 Aug-19 FINANCIAL PERFORMANCE DEBT, TREASURY AND Sandton Sunninghill Sunhill Park Gauteng Office 44.0 Dec-19 Date of transfer Property to be sold Location Sector Price R'm STRATEGIC PLANS AND PROSPECTS Midrand Vacant Land Gauteng Land 34.5 Terms agreed, agreement to be signed Terms agreed, Due Diligence Namibian Retail Portfolio Namibia Retail 920.0 Q&A completed and under offer (Q2FY20) APPENDICES Commercial/ Agreement signed with CPs to be fulfilled AIH transaction Gauteng/KZN 700.0 Industrial (Q2FY20) 21
Retail of the future INTRODUCTION Customer driven centres to prevail Positive customer experience will be the key differentiator in sustaining footfall in the future SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Data accumulation in order to listen, involve and interact on an individualised manner with shoppers will be key to the sustainability of retail assets Shopping centre environment ripe for digital disruption PROPERTIES OVERVIEW CASTELLANA − understanding the customer enables us to self disrupt and be at the forefront of this rapid change Shoppertainment is nodally specific – let customers tell you how they want to be entertained and FINANCIAL PERFORMANCE DEBT, TREASURY AND how to add value to their lives Make your asset part of the community which it serves – figuratively drop the fences STRATEGIC PLANS AND PROSPECTS We have therefore invested in a 3 pillar customer insights strategy to future proof the portfolio − Gather data to understand our current customer and maintain loyalty − Understanding the nodal dynamics and market insights in which the asset resides Q&A − Engage and interact effectively with customers throughout their customer journey APPENDICES 22
Customer centricity and insights INTRODUCTION Developing core competence in customer centricity to drive better leasing decisions and tenant mix 3 primary pillars of customer insights journey SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW − In-Mall Understand and interact with current tenants and customers to maintain loyalty with the use of technology PROPERTIES OVERVIEW CASTELLANA − Out of-Mall Understand market insights in the nodal context and use that to position the mall as the primary retail destination FINANCIAL PERFORMANCE DEBT, TREASURY AND − Shopper interaction and engagement Interact with customers throughout the customer journey STRATEGIC PLANS − Bottom up approach to customer engagement AND PROSPECTS Best of breed partnerships and joint ventures to execute all legs of strategy Q&A APPENDICES Adding value for our shoppers 23
Alternative income management INTRODUCTION Significant milestones achieved with platform now in place SOUTHERN AFRICAN RETAIL Fibre to the business project The shopper app is being PORTFOLIO OVERVIEW completed. Open Access finalised - to be deployed contracts for tenants now at Hillfox & Dobsonville available by Jan 2020 PROPERTIES OVERVIEW CASTELLANA Wi-Fi installed at 2 Will generate consumer properties, East Rand Mall behaviour insights from approved for Dec 2019 go-live data captured FINANCIAL PERFORMANCE DEBT, TREASURY AND 4 Tenants are advertising via Innovative Ideas Incentive Campaign launched via the Vuka the WiFi Captive Portal Social Media site. Mailer campaign started to promote STRATEGIC PLANS AND PROSPECTS More than 76 000 shoppers Exhibitions income management portal improved to Q&A have already registered via the increase income and drive operational efficiency APPENDICES WiFi captive portal 24
Energy and water management INTRODUCTION Achievements Meadowdale Mall - phase 1 East Rand Mall Oshakati Hillfox - phase 1 Impact on cost-to-income ratio Electricity contributes 42% to total expenses, with an SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW average year-on-year escalation of 9% 4% of the portfolio’s electricity is generated by renewable resources , curbing our largest expense item by 100bps 351 kWp 1 000 kWp 550 kWp 754 kWp positive impact on the net cost-to-income ratio R0.6m saving R1.8m saving R2.9m saving R1.4m saving Completed February 2016 Completed December 2016 Completed March 2017 Completed November 2017 Goal to increase renewable resource contribution to total PROPERTIES OVERVIEW electricity consumption to 8% Vereeniging Bedworth Centre Meadowdale Mall - phase 2 Letlhabile Mall Mbombela Shoprite Centre CASTELLANA Installations since 2016 12 PV plants = 28 000 PV panels FINANCIAL PERFORMANCE DEBT, TREASURY AND 9.3 MWp 1000 kWp 849 kWp 806 kWp 400 kWp = 1 600 Houses R1.8m saving R1.5m saving R1.0m saving R0.5m saving = R14m annually Completed June 2018 Completed January 2019 Completed January 2019 Completed January 2019 Optimised metering and billing improvements of R2m Springs Mall Kolonnade Retail Park Hammanskraal Renbro Hillfox - phase 2 STRATEGIC PLANS AND PROSPECTS annual saving Sustainable water savings of 18 000 kl p.a. = 700 swimming pools Q&A Work in progress APPENDICES 325 kWp 1 300 kWp 642 kWp 430 kWp R0.6m saving R2.0m saving R1.0m saving R0.6m saving 2.6 MWp to be completed before February 2020 Completed July 2019 Completed July 2019 Completed October 2019 Completed October 2019 25
3 Castellana Properties Overview Alfonso Brunet www.vukile.co.za 26
Highlights INTRODUCTION A transformational period, now the eighth largest Socimi in Spain by market capitalisation Gross Asset Value exceeds €1bn for the first time SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW ₋ Accretive acquisitions and revaluation growth driven by increased NOI grew portfolio over the €1bn mark Active asset management continues to increase income and value ₋ Vacancies reduced to 1.4% from 2.1%, with high quality tenants PROPERTIES OVERVIEW CASTELLANA ₋ 74 new leases signed (renewals and new contracts) generating additional annualised NOI of c.€1.6m ₋ 80% of GLA in ECI redevelopment projects already committed ₋ GRI up 4.70% like-for-like FINANCIAL PERFORMANCE DEBT, TREASURY AND Acquisition of Puerta Europa shopping centre presents significant value-add opportunities ₋ Dominant, high performing centre presents numerous opportunities to grow income STRATEGIC PLANS AND PROSPECTS Successful acquisition of additional units at Bahia Sur and Los Arcos opens up opportunities to transform centres − El Corte Ingles boxes unlocks additional value-add opportunities to enhance income and customer offerings Q&A Growth in EPRA NAV of 3.14% to €6.89 per share APPENDICES - Generating a yield of 6.6% 27
Key portfolio metrics INTRODUCTION A premier retail SOCIMI in Spain SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Operating Key Facts Valuations Tenants Metrics PROPERTIES OVERVIEW CASTELLANA Portfolio Value of €1 028m Average asset value €57m 93% of retail space let to 19.17% increase in FINANCIAL PERFORMANCE DEBT, TREASURY AND national tenants reversions and new lettings 18 Properties Average discount rate 7.9% 37% of income from 98.6% Occupancy GLA 373 022m² Average exit capitalisation top 10 tenants Average base rentals rate 6.1% STRATEGIC PLANS AND PROSPECTS 97.4% Retail by value WALE of 14.2 years (i) €14.38/m²/month 99.3% rent collection rate 4.7% Like-for-like growth Q&A in rental income APPENDICES (i) WALE is to expiry of lease excluding break options 28
Sales & footfall – continuing to grow INTRODUCTION Sales performance up 3.2% Like-for-Like, Footfall up 5.3% YTD to September 2019 SOUTHERN AFRICAN RETAIL €178.7m 16.5m Total Sales Total Footfall PORTFOLIO OVERVIEW H1 2020: H1 2020: people Sales growth – H1 2020 vs H1 2019 Footfall YTD 2019 – Jan-Sep 2019 PROPERTIES OVERVIEW CASTELLANA 5.5% 5.3% 5.2% 3.8% 3.5% 1.4% FINANCIAL PERFORMANCE DEBT, TREASURY AND 2.2% 1.5% 1.3% 1 0.6% 3.2% -1.2% -1.2% -1.3% -2.1% -2.4% -2.7% STRATEGIC PLANS AND PROSPECTS -3.0% -3.5% -3.8% Q&A Nat. Index Castellana Portfolio APPENDICES Source National Index ShopperTrack Castellana’s portfolio includes the 6 Shopping Centres and Granaita Retail Park where tenant sales data is received 29
Leasing activity – positive reversions INTRODUCTION Positive reversions across the portfolio over the period with strong collection rates OCCUPANCY INCREASED TO c. 99% SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 74 €5.1m 30 TH SEPT. 2019 98.61 % LEASES SIGNED NEW RENT SIGNED 31 ST MARCH 2019 97.86 % PROPERTIES OVERVIEW 29 45 €2.96m €2.22m CASTELLANA RENT ARREARS REDUCED BY 4.23% RENEWALS NEW CONTRACTS RENEWALS NEW CONTRACTS 30 TH SEPT. 2019 0.68 % FINANCIAL PERFORMANCE DEBT, TREASURY AND 31 ST MARCH 2019 0.71 % 19.17 % 30 228 m² RENT COLLECTION OF C. 99.32% AV. RENT/M² INCREASE STRATEGIC PLANS AND PROSPECTS GLA SIGNED ON PASSING RENTS COLLECTED € 41.86 m 22 038m² 8 190m² 6.71 % 21.03% Q&A € 42.15 m INVOICED RENEWALS NEW CONTRACTS RENEWALS NEW CONTRACTS APPENDICES 30
Value creation INTRODUCTION GRI Bridge and Breakdown Life-for-Like Growth of 4.7% for H1FY20 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Potential Portfolio GRI Annualised over €65m €52m 80% Shopping Centres €11.4m 17% Retail Parks €1.9m 3% Offices PROPERTIES OVERVIEW CASTELLANA €m 65.3 +2.6% Shopping Centres Total LfL Growth +7.4% Retail Parks FINANCIAL PERFORMANCE +4.7% DEBT, TREASURY AND +3.3% Offices 28.3 0.8 10.9 15.9 0.8 STRATEGIC PLANS AND PROSPECTS GRI Like-for-Like GRI from GRI GRI Potential GRI Potential GRI Q&A Annualised (1) H1FY19 Growth acquisition acquisitions H1FY20 Annualised(1) H1FY20 H1FY20 APPENDICES (1) Annualised GRI considering new units acquired during H1FY20 and under Repositioning Project 31
Tenant mix INTRODUCTION Highly diversified retail mix leading to sustainable, high quality and low risk income streams WALE (i) Assets GLA Occupancy SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 356 278 m 2 16 14.2 years 98.6% Category profile by Rent Top 10 Tenants by Rent 30 September 2019 30 September 2019 PROPERTIES OVERVIEW CASTELLANA 11.1 35% Fashion & Accessories 10% Food & Beverage 4.5 8% Sports 3.9 7% Food FINANCIAL PERFORMANCE DEBT, TREASURY AND 3.2 7% Household Goods 6% Services 3.0 6% Beauty & Health 2.9 6% Culture & Gifts STRATEGIC PLANS AND PROSPECTS 5% Electronics 2.7 5% DIY 2.1 3% Pets 1.9 1% Leisure Q&A 1% Storage and other 1.9 APPENDICES 0 5 10 15 (i) WALE is to expiry of lease excluding break options 32
Value creation INTRODUCTION GAV Bridge and Breakdown Portfolio revaluation of €7.5m in 6 months from 31 March 2019 SOUTHERN AFRICAN RETAIL (1) during H1FY20 PORTFOLIO OVERVIEW Portfolio Gross Asset Value over €1bn with acquisitions of c.€100m Current value does not include the expected NOI growth of c.€5m on the ECI projects LfL Acquisitions PROPERTIES OVERVIEW GROWTH GROWTH CASTELLANA +0.32% +9.77% €m 1 028.4 4.7 104.3 2.9 916.5 FINANCIAL PERFORMANCE DEBT, TREASURY AND €99.5m Acquisitions (1) €4.8m Capex & Others STRATEGIC PLANS AND PROSPECTS Q&A 31st March Like-for-Like Acquisitions Growth on 30th September APPENDICES 2019 Growth acquisitions 2019 (1) Asset purchase price includes transaction costs 33
New acquisition – Puerta Europa INTRODUCTION Dominant shopping centre in Algeciras offering stable and growing NOI Dominant centre in port city of SOUTHERN AFRICAN RETAIL €56.8m PORTFOLIO OVERVIEW Algeciras with under-market rentals and above average sales Acquisition Price performance offers attractive NOI growth profile PROPERTIES OVERVIEW CASTELLANA 96% Key Metrics GLA 29 757m² National and FINANCIAL PERFORMANCE International Brands DEBT, TREASURY AND Catchment 260 000 people Average OCR 10% 4.6m Average Rent €14.18/m² STRATEGIC PLANS AND PROSPECTS Purchase Date 31 July 2019 Footfall Q&A APPENDICES 34
Additional acquisitions INTRODUCTION Strategic acquisitions to enhance existing assets Key Tenants SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Accretive acquisition of Phase 2 at Pinatar Park to further strengthen the tenant mix PROPERTIES OVERVIEW Pinatar Park Phase II – Murcia CASTELLANA Acquisition Date: 18/06/2019 Price (1) : €3.59m GLA: 2 624m² FINANCIAL PERFORMANCE DEBT, TREASURY AND Acquisition allows for expanded value-adding repositioning projects STRATEGIC PLANS AND PROSPECTS in both Bahia Sur and Los Arcos ECI units – Sevilla and Cádiz Q&A Acquisition Date: 27/05/2019 APPENDICES Price (1) : €36.8m GLA: 23 000 m² 35
36 SOUTHERN AFRICAN RETAIL CASTELLANA DEBT, TREASURY AND STRATEGIC PLANS INTRODUCTION PORTFOLIO OVERVIEW PROPERTIES OVERVIEW FINANCIAL PERFORMANCE Q&A APPENDICES AND PROSPECTS Asset Management Growth Drivers Repositioning Projects
37 SOUTHERN AFRICAN RETAIL CASTELLANA DEBT, TREASURY AND STRATEGIC PLANS INTRODUCTION PORTFOLIO OVERVIEW PROPERTIES OVERVIEW FINANCIAL PERFORMANCE Q&A APPENDICES AND PROSPECTS Value creation – repositioning project – Bahia Sur 1 / 2 Further entrenching the dominance of the centre
Value creation – repositioning project – Bahia Sur 2 / 2 INTRODUCTION SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW CASTELLANA Acquisition of El Corte Ingles unit to reinforce the dominance of the centre, FINANCIAL PERFORMANCE DEBT, TREASURY AND bringing new and exciting tenants to the Cadiz region CURRENT LAY OUT FUTURE LAY OUT RETURN METRICS STRATEGIC PLANS AND PROSPECTS Acquisition Cost €19.5m Capex Budget €17.8m 14 19 000m² 85.3 % Additional NOI created €2.25m Q&A GLA Affected New Brands New premium cinemas of GLA signed Cash on cash 9.60% APPENDICES with 6 cinema screens and committed 38
39 SOUTHERN AFRICAN RETAIL CASTELLANA DEBT, TREASURY AND STRATEGIC PLANS INTRODUCTION PORTFOLIO OVERVIEW PROPERTIES OVERVIEW FINANCIAL PERFORMANCE Q&A APPENDICES AND PROSPECTS Value creation – repositioning project – Los Arcos 1 / 2 Upgrading the dominant city centre shopping centre
Value creation – repositioning project – Los Arcos 2 / 2 INTRODUCTION SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW CASTELLANA Acquisition of Hipercor unit enabling improved tenant mix along with street FINANCIAL PERFORMANCE level reconfiguration DEBT, TREASURY AND CURRENT LAY OUT FUTURE LAY OUT RETURN METRICS STRATEGIC PLANS AND PROSPECTS Acquisition Cost €17.3m Capex Budget €6.3m 14 11 000m² 86.1 % Additional NOI created €1.36m Q&A GLA Affected New Brands New supermarket, category of GLA signed Cash on cash 9.01% APPENDICES leader in grocery sector in and committed Spain 40
41 SOUTHERN AFRICAN RETAIL CASTELLANA DEBT, TREASURY AND STRATEGIC PLANS INTRODUCTION PORTFOLIO OVERVIEW PROPERTIES OVERVIEW FINANCIAL PERFORMANCE Q&A APPENDICES AND PROSPECTS Increasing the leisure and F&B component to further entrench dominance Value creation – repositioning project – El Faro 1 / 2
Value creation – repositioning project – El Faro 2 / 2 INTRODUCTION SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW CASTELLANA Unlocking value by transforming former DIY box into FINANCIAL PERFORMANCE attractive F&B Plaza DEBT, TREASURY AND Return Metrics FUTURE LAY OUT STRATEGIC PLANS AND PROSPECTS Capex Budget €4.5m Additional NOI created €0.25m 14 11 000m² 39.6 % Cash on cash 8.83% Q&A GLA Affected New Brands 1st premium cinemas in the of GLA signed APPENDICES region with 6 cinema screens and committed 42
Growth drivers INTRODUCTION Continued focus on Asset Management Leroy Merlin Habaneras SC enhanced tenancy Inditex Group consolidation SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW CASTELLANA FINANCIAL PERFORMANCE DEBT, TREASURY AND 5 units agreed to be converted from New F&B area reconfiguration in upper Total GLA renovated/resized of 5 549 m² Aki to Leroy Merlin with total GLA of floor (2 restaurants moved from ground Units resized in Habaneras and Los 18 832 m² floor and a new restaurant lease signed) Arcos SCs , an increase of 83% of the MGR increase of 13.2% Replacement of 2 units located in tenant GLA ground floor with a new lease signed STRATEGIC PLANS AND PROSPECTS Mandatory periods extended to Inditex Group is present in all our with Sfera 4 years more shopping centres with a total GLA of 3 rd Miniso shop opened in Spain in 28 457 m² Improvement of tenant mix with Leroy September Q&A Merlin, being the category leader of the APPENDICES DIY sector Post 30 September 2019 43
Capex on the rest of the portfolio INTRODUCTION €25m of value -adding capex spread across the portfolio Project Est. Capex Progress SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Vallsur Reconfiguration of first floor €10m In concept phase 1 PROPERTIES OVERVIEW CASTELLANA Re-sizing of fashion boxes and Habaneras €2.6m 100% complete 2 introduction of F&B FINANCIAL PERFORMANCE DEBT, TREASURY AND New stand-alone units integrating Granaita SC €2.0m In concept phase 3 the three nodes with green areas STRATEGIC PLANS AND PROSPECTS Pinatar Purchase of phase 2 €4.0m 100% complete 4 Q&A APPENDICES 44
Focus on the customer INTRODUCTION The beginning of the journey New Data sources to better know our customers SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Signed agreement with leading telecoms business on accessing customer big data sources First phase already launched in pilot shopping centres PROPERTIES OVERVIEW CASTELLANA B2C communication campaigns launched in the three SCs currently under works to minimize the impact and create anticipation about what’s coming FINANCIAL PERFORMANCE DEBT, TREASURY AND Leasing materials on track for repositioning projects New WIFI Captive Portal in progress to be installed in the SCs. Unlimited and free WIFI for customers that are part of the Loyalty Program STRATEGIC PLANS AND PROSPECTS Bring the cities to our centres – initiate regular events linked to our communities Q&A APPENDICES 45
4 Debt, Treasury and Financial Performance Laurence Cohen www.vukile.co.za 46
Group debt and foreign exchange policy INTRODUCTION A prudent and structured approach to managing risk A multi-banked approach across diversified sources of funding SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Always maintain significant revolving credit facilities and undrawn debt facilities – to facilitate liquidity and allow flexibility Minimum of 75% of interest bearing debt to be hedged with a minimum 3 year fixed rate PROPERTIES OVERVIEW CASTELLANA (swap) maturity profile No more than 25% of total interest bearing debt to mature within any one financial year FINANCIAL PERFORMANCE DEBT, TREASURY AND Internal management policy for loan-to-value ratio to be in the range of 35% to 40% Acquisitions of Euro assets to be funded with Euro loans to minimise adverse foreign exchange fluctuations on Vukile’s earnings, assets and liabilities STRATEGIC PLANS AND PROSPECTS On average 75% of foreign dividends to be hedged by way of forward exchange contracts over a 3-year to 5-year period Q&A APPENDICES 47
Group debt overview INTRODUCTION Group debt from diversified sources of funding SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Sep-19 Mar-19 Group Debt (Rbn) Rbn) No. of bank funders SA 7.4 5.9 SA 5 25% PROPERTIES OVERVIEW Spain 8.1 7.3 Spain (iv) 7 CASTELLANA Total 15.5 13.2 Total 12 FINANCIAL PERFORMANCE 6% DEBT, TREASURY AND 4% Consolidated 52% Castellana bank debt 13% STRATEGIC PLANS AND PROSPECTS - non-recourse to Vukile SA bank debt (EUR) Q&A SA bank debt (ZAR) Diversified DCM APPENDICES investor base SA bank debt (GBP) 48
Key debt and hedging metrics INTRODUCTION Interest rates and foreign currencies conservatively hedged Internal Policy SOUTHERN AFRICAN RETAIL Sep-19 Mar-19 PORTFOLIO OVERVIEW at Group level Interest-bearing debt hedged 86.5% 95.7% > 75% PROPERTIES OVERVIEW Maturity profile – fixed rates and swaps 3.4 years 3.6 years > 3 years CASTELLANA Group cost of funding 4.0% 4.5% FINANCIAL PERFORMANCE DEBT, TREASURY AND Undrawn facilities R1.2bn R1.4bn STRATEGIC PLANS AND PROSPECTS Net EUR dividend hedged (5 years) 82% 52% Corporate long-term credit rating AA- (ZA) A+ (ZA) Q&A APPENDICES 49
Interest cover ratio (ICR) INTRODUCTION ICR reflects strong cashflows to comfortably service interest SOUTHERN AFRICAN RETAIL Southern PORTFOLIO OVERVIEW Group Spain Africa Interest cover ratio 6.4 times 8.0 times 5.3 times PROPERTIES OVERVIEW CASTELLANA Interest cover covenant level 2 times 2 times 2 times FINANCIAL PERFORMANCE DEBT, TREASURY AND ICR stress level margin 69% 75% 62% (% EBITDA reduction to respective covenant levels) ICR stress level amount R1450m R832m €40m STRATEGIC PLANS AND PROSPECTS (EBITDA reduction to respective covenant levels) Q&A APPENDICES 50
Loan-to-value ratio (LTV) INTRODUCTION Stress testing reveals the strength of the balance sheet Internal SOUTHERN AFRICAN RETAIL Southern PORTFOLIO OVERVIEW Group Spain Policy at Africa Group level Loan-to-value 40.8 % 38.8% 42.9% 35% - 40% (net of cash and cash equivalents) PROPERTIES OVERVIEW CASTELLANA Loan-to-value covenant level 50% 50% 65% FINANCIAL PERFORMANCE DEBT, TREASURY AND LTV stress level margin 18% 21% 34% (% asset value reduction to respective covenant levels) LTV stress level amount R6.1bn R3.7bn €350m STRATEGIC PLANS AND PROSPECTS (asset value reduction to respective covenant levels) Q&A APPENDICES 51
Management plans to reduce LTV INTRODUCTION LTV target range: 35% - 40% Reduce LTV to ± 35% over the next 6 – 12 months SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Discussions progressing for introduction of strategic shareholder in Castellana to help fund further growth Current LTV 40.8% PROPERTIES OVERVIEW CASTELLANA Sale of Namibian assets (1.7%) FINANCIAL PERFORMANCE Sale of non-core office & industrial assets (1.1%) DEBT, TREASURY AND Sale of non-core retail assets (1.5%) STRATEGIC PLANS AND PROSPECTS Introduction of strategic shareholder in Castellana (€100m) (1.8%) Q&A APPENDICES Potential LTV 34.7% 52
Simplified income statement INTRODUCTION Sep-19 Sep-18 Variance Rm Rm % Revenue 1 763 1 240 42.2 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW SA 1 040 930 11.8 Spain 723 310 100.0 Property Expenses (543) (426) 27.5 Net property income 1 220 814 49.9 PROPERTIES OVERVIEW CASTELLANA SA 640 574 11.5 Spain 580 240 100.0 Corporate administration expenses (140) (97) 44.3 FINANCIAL PERFORMANCE DEBT, TREASURY AND Income from listed investments 113 96 17.7 Operating profit before finance costs 1 193 813 46.7 Net finance costs (139) (129) 7.8 STRATEGIC PLANS AND PROSPECTS Profit before taxation 1 054 684 54.1 Taxation (14) (17) 17.6 Profit for the period 1 040 667 55.9 Q&A Non controlling interests (88) (25) APPENDICES Attributable to Vukile Group 952 642 48.3 53
Distributable earnings INTRODUCTION Reconciliation to dividends per share Sep-19 Sep-18 Variance SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Rm Rm % Attributable to Vukile Group 952 642 48.3 Non-IFRS adjustments: (105) 71 PROPERTIES OVERVIEW Profit before tax of subsidiary (Castellana) (111) - CASTELLANA Listed investments (Fairvest/Arrowhead) 1 - Non-cash impact of IFRS 16 (Leases) 3 - FINANCIAL PERFORMANCE DEBT, TREASURY AND Antecedent dividend 2 71 Available for distribution to Vukile shareholders 847 713 Dividend (Rm) 773 702 STRATEGIC PLANS AND PROSPECTS Shares in issue (for dividend) 956 226 628 875 339 319 Dividend per share 80.84 78.10 3.5 Q&A APPENDICES 54
Geographical segment analysis INTRODUCTION Spain increased its contribution to 48% of net property income 6 months to September 2018 6 months to September 2019 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 25% 41% PROPERTIES OVERVIEW Revenue Revenue CASTELLANA 59% 75% FINANCIAL PERFORMANCE DEBT, TREASURY AND 29% STRATEGIC PLANS AND PROSPECTS Net property income Net Property income 48% 52% Southern Africa Q&A 71% APPENDICES Spain 55
Group net cash flow – (Rm) INTRODUCTION Dividend fully covered by cash flows from operating activities SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 696 2 111 PROPERTIES OVERVIEW CASTELLANA (1 871) (155) 152 1 046 FINANCIAL PERFORMANCE DEBT, TREASURY AND ( 615 ) ( 1 034 ) ( 62 ) STRATEGIC PLANS AND PROSPECTS 1 404 1 136 Balance at 1 April Cash from Dividends from Borrowings and Issue of shares Acquisitions / Finance costs Non-controlling Dividend paid Other Balance at 30 Q&A 2019 operating activities listed investments advances additions to interest September 2019 investment APPENDICES property 56
Group balance sheet – (Rm) INTRODUCTION Summarised movement in assets and liabilities Sep-19 Mar-19 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 30 946 29 334 PROPERTIES OVERVIEW CASTELLANA FINANCIAL PERFORMANCE 13 090 DEBT, TREASURY AND 11 548 STRATEGIC PLANS AND PROSPECTS 2 600 2 409 2 318 2 300 1 807 1 749 1 431 1 016 Q&A Investment Investment property held for Listed investments Interest-bearing borrowings Short-term portion of Non-controlling interest property sale interest-bearing borrowings APPENDICES 57
Cents per share Continuing 16 year trend of unbroken growth in distributions Distribution history 40.30 48 2008 88.30 44.10 53.8 2009 97.90 47.00 60.9 2010 107.90 46.20 62.8 2011 109.00 8.7 47.60 63.8 Interim 2012 111.40 13.4 52.20 68.2 Final 2013 120.40 11.2 54.80 Normalised total 71.7 2014 126.50 13.8 59.10 77.7 2015 136.80 Non-recurring 63.20 83.1 2016 146.30 67.65 89.1 2017 156.75 72.65 96.17 2018 168.82 78.10 103.38 2019 181.48 80.84 2020 3.5% AND PROSPECTS APPENDICES Q&A FINANCIAL PERFORMANCE PROPERTIES OVERVIEW PORTFOLIO OVERVIEW INTRODUCTION STRATEGIC PLANS DEBT, TREASURY AND CASTELLANA SOUTHERN AFRICAN RETAIL 58
5 Strategic plans and prospects Laurence Rapp www.vukile.co.za 59
AIH transaction – A powerful partnership to drive transformation between two complimentary partners INTRODUCTION Two aspects to the deal Sale of office and industrial portfolio to Mbako Property Fund Creation of a Property Asset Management Company SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Portfolio sold for R700m Compelling partnership designed to create a black women’s property asset management business Senior bank debt of R475m already approved Owned 70% by AIH and 30% by Vukile Vukile to provide a guarantee for R125m or c.18% PROPERTIES OVERVIEW Further Vukile contribution to sector transformation of the transaction CASTELLANA through skills transfer and enterprise development AIH to inject R100m equity Will be incubated by Vukile during the build-up phase − Main CP still to be filled FINANCIAL PERFORMANCE DEBT, TREASURY AND Vukile contribution of skills, expertise, systems and − Already in process infrastructure Vukile to receive R700m in cash on closing Looking to recruit top talent − To be applied to reduce SA debt Infuse the Vukile DNA into the JV STRATEGIC PLANS AND PROSPECTS No Vukile ownership in Mbako Property Fund AIH to bring deal flow and ability to attract capital − Opportunistic fund operating across sectors Q&A − More value add and capital growth focus versus income based APPENDICES − Managed by new AIH/Vukile external asset management company 60
Listed investments INTRODUCTION Looking for opportunities to recycle into core strategies SOUTHERN AFRICAN RETAIL Arrowhead - (c.11.3%) Atlantic Leaf - (34.9%) Fairvest - (26.6%) PORTFOLIO OVERVIEW Remains non-core and ideally Satisfied with operations and Aligned to Vukile core retail focus PROPERTIES OVERVIEW looking to exit but not attractive at strategic direction of the business No immediate plans to exit but will CASTELLANA current levels Will consider an exit at the right continue to monitor total Concerned about strategic direction price in order to redeploy funds into shareholder’s returns and absence of a catalyst to drive a Spain FINANCIAL PERFORMANCE DEBT, TREASURY AND re-rating Continue to work with management Believe asset sales and share buy- to find solutions and appropriate exit backs should be part of management for Vukile strategy STRATEGIC PLANS AND PROSPECTS Q&A APPENDICES 61
Southern Africa INTRODUCTION Internally focussed strategy to drive operational performance Anticipate another challenging period ahead for the local economy SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Portfolio is defensively positioned with 92% retail exposure with a specific focus on LSMs 1-7 Defensive tenant mix with approximately 80% national tenants and large grocery component at low rent to sales ratios PROPERTIES OVERVIEW CASTELLANA Local activity will be focused on expansions and upgrades to existing centres Continued strong operational focus to drive results with a specific objective to reduce vacancies and operating costs FINANCIAL PERFORMANCE Look to introduce new tenants to add variety to the shopping centres DEBT, TREASURY AND Growing focus on customer analytics and alternative income streams gathering momentum Installation of fibre at 35 centres is a key foundation for our future strategy and is complete STRATEGIC PLANS AND PROSPECTS Will invest further in South Africa; its about buying the right assets at the right price where good underwriting is key Look to recycle non-core assets and investments where appropriate without harming earnings momentum Q&A Retain an opportunistic and entrepreneurial approach to deal-making but always to be strategically consistent with APPENDICES our retail focus and driven by long term fundamentals 62
Spanish strategy INTRODUCTION Building off a solid foundation with potential to become a dominant market participant Spanish retail and economic fundamentals remain positive; not an over-retailed market with 560 retail assets SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW − Spanish consumer and social culture together with large tourist market provides a defensive position against online retail sales Remain focused on the retail sector including retail parks and shopping centres Critical to our success is that we operate as locals on the ground PROPERTIES OVERVIEW Focus on value added asset management initiatives and driving operational excellence CASTELLANA Currently seeing very good deal flow with Castellana known as a credible and trustworthy buyer Good organic acquisition opportunities aligned to existing assets including buying owner occupied boxes FINANCIAL PERFORMANCE Strong focus on corporate governance DEBT, TREASURY AND Internal management structure with complete alignment between key staff and investors through the recently implemented long term incentive plan that rewards growth in dividends as the key metric Opportunity to really dominate the market STRATEGIC PLANS AND PROSPECTS − Private Equity funds need to return capital and sell assets − Negative perception of retail means less competition for assets Q&A − Need to be alert to exciting corporate opportunities APPENDICES Confident we can deliver on vision to be the dominant market player but the pace thereof will be contingent on shareholder support for the strategy 63
Growth path optionality INTRODUCTION Additive strategies but will need strong shareholder support to quickly lead the market Deal led Higher SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW − Portfolios − Corporate activity − Introduction of a strategic shareholder − Quickest route to market dominance PROPERTIES OVERVIEW Asset led CASTELLANA − Individual asset purchases − Good pipeline of assets − Looking for accretive deals FINANCIAL PERFORMANCE Market share DEBT, TREASURY AND − Dominant asset in catchment area with stable NOI and upside potential through asset management Organic STRATEGIC PLANS AND PROSPECTS − Focus on asset management opportunities − Value add projects on existing portfolio Q&A − Will always be a key focus and part of Lower APPENDICES any strategy Slower Faster Pace 64
Castellana is the seventh largest institutional retail owner in Spain by GLA INTRODUCTION On the cusp of a market leading position 600 000 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 500 000 PROPERTIES OVERVIEW 400 000 Estimated m² GLA CASTELLANA 300 000 FINANCIAL PERFORMANCE DEBT, TREASURY AND 200 000 100 000 STRATEGIC PLANS AND PROSPECTS 0 Q&A APPENDICES Source: CBRE 65
Castellana relative to its Spanish and European peers INTRODUCTION Castellana offers an attractive dividend yield vs EPRA NAV relative to European and Spanish peers 6.6% SOUTHERN AFRICAN RETAIL 6.3% PORTFOLIO OVERVIEW 5.5% 5.2% 5.0% 4.7% DPS/EPRA NAVps 3.9% PROPERTIES OVERVIEW 3.8% 3.7% 3.5% CASTELLANA 3.5% 3.5% 3.3% 3.2% 3.0% 2.1% FINANCIAL PERFORMANCE DEBT, TREASURY AND 0.0% STRATEGIC PLANS AND PROSPECTS Q&A APPENDICES European REITs ex Spain Spain Source: ACF 66
How we think about the business INTRODUCTION Value lies in the sum of the parts Castellana valued based on its European-denominated and SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW sourced income streams Very much a rand hedge and the use of FECs removes the volatility in earnings making them more predictable PROPERTIES OVERVIEW CASTELLANA − Provides a further boost to the expected growth in Euro dividends by locking in the ZAR depreciation against the EURO Group Functions and Treasury Management − In no way diminishes the rand hedge nature of the cashflows or FINANCIAL PERFORMANCE DEBT, TREASURY AND the company SA business valued relative to its peers taking into account the quality of the assets, ongoing strong operating metrics, STRATEGIC PLANS AND PROSPECTS tight sector focus, specialisation and long term sustainability Southern Africa Q&A Collectively providing a very well diversified, low risk Portfolio APPENDICES income stream with a nearly 50% rand hedge element that will provide solid growth in dividends going forward 67
Prospects INTRODUCTION The Vukile business remains in very good shape; operationally, financially and strategically SOUTHERN AFRICAN RETAIL Clearly focused retail strategy and specialisation in both South Africa and PORTFOLIO OVERVIEW Spain is providing benefits in each of these markets as seen by the strong operational performances At group level, the macro-economic benefits of diversification for South African investors is evident PROPERTIES OVERVIEW CASTELLANA Decision making is all geared towards making the right decisions for the long term sustainability of the business and trying to ensure we are not caught up in short termism FINANCIAL PERFORMANCE Will continue to remain very focused on balance sheet strength and DEBT, TREASURY AND overall risk management The business remains very well positioned for long-term sustainability and growth Reaffirm guidance for the year of growth in dividends of between 3% to 5% STRATEGIC PLANS AND PROSPECTS − Forecast is not contingent on any deals taking place in the remainder of the year Q&A − Important to note that the current forecast for FY2020 contains certain APPENDICES costs and base related items that are providing a drag of approximately 2% in the current year which should not repeat going forward 68
69 SOUTHERN AFRICAN RETAIL CASTELLANA DEBT, TREASURY AND STRATEGIC PLANS INTRODUCTION PORTFOLIO OVERVIEW PROPERTIES OVERVIEW FINANCIAL PERFORMANCE Q&A APPENDICES AND PROSPECTS Brokers and developers Property managers Service providers Colleagues Investors Funders Tenants Board Acknowledgements
Q&A 6 www.vukile.co.za 70
7 Appendices www.vukile.co.za 71
Southern Africa retail footprint INTRODUCTION Retail portfolio profile (Top 15 properties 65% of portfolio by value) SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 12 11 8% PROPERTIES OVERVIEW 1 CASTELLANA 10 6% 7 5 13 36% 4% 14 15 1 East Rand Mall 9 Bloemfontein Plaza 4% 10 2 Pine Crest Meadowdale Mall 9 FINANCIAL PERFORMANCE 4 DEBT, TREASURY AND 3 11 Phoenix Plaza Thavhani Mall 3 2 9% 12 4 Maluti Crescent Oshakati 23% 13 Kolonnade Retail Park Daveyton 5 STRATEGIC PLANS AND PROSPECTS 8 14 Randburg Square 6 Gugulethu Square 15 Moruleng Mall 3% 7 Dobsonville Mall 7% 6 Q&A Top 15 Properties Nonesi Mall 8 APPENDICES Retail Geographic Profile % by Value 72
High quality retail assets INTRODUCTION Top 15 assets East Rand Mall Pine Crest Phoenix Plaza Maluti Crescent Kolonnade Retail Park SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW GAV R1 448m R1 155m R 939m R 808m R 547m CASTELLANA Region Gauteng KwaZulu-Natal KwaZulu-Natal Free State Gauteng Gross Lettable 68 404m² 43 431m² 24 231m² 35 303m² 39 665m² Area FINANCIAL PERFORMANCE DEBT, TREASURY AND Monthly Rental R277/m² R184/m² R280/m² R159/m² R111/m² National Tenant 94% 88% 79% 94% 89% exposure STRATEGIC PLANS AND PROSPECTS Vukile 50% 100% 100% 100% 100% Ownership Approx. 8.9m (i) 10.5m 10.8m 10.2m 9.5m Footfall Q&A Vacancy APPENDICES 1.9% 2.2% 2.6% Fully let Fully let (i) Estimate 73
High quality retail assets INTRODUCTION Top 15 assets (cont.) Nonesi Mall Gugulethu Square Dobsonville Mall Bloemfontein Plaza Meadowdale Mall SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW GAV R 545m R 545m R 507m R 458m R 454m CASTELLANA Region Western Cape Gauteng Eastern Cape Free State Gauteng Gross Lettable 25 323m² 26 438m² 27 898m² 43 771m² 49 487m² Area FINANCIAL PERFORMANCE DEBT, TREASURY AND Monthly Rental R166/m² R146/m² R131/m² R92/m² R83/m² National Tenant 89% 89% 97% 55% 81% exposure STRATEGIC PLANS AND PROSPECTS Vukile 100% 100% 100% 100% 67% Ownership Approx. 9.9m (i) 11.2m 10.4m 8.2m 8.6m Footfall Q&A Vacancy APPENDICES 1.3% 1.3% Fully let 1.2% Fully let (i) Estimate 74
High quality retail assets INTRODUCTION Top 15 assets (cont.) Daveyton Shopping Oshakati Shopping Thavhani Mall Randburg Square Moruleng Mall Centre Centre SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW GAV R 447m R 428m R 428m R 413m R 411m CASTELLANA Region Limpopo Namibia Gauteng Gauteng North West Gross Lettable 53 345m² 24 632m² 17 774m² 40 777m² 31 593m² Area FINANCIAL PERFORMANCE DEBT, TREASURY AND Monthly Rental R174/m² R143/m² R172/m² R107/m² R126/m² National Tenant 93% 94% 82% 81% 85% exposure STRATEGIC PLANS AND PROSPECTS Vukile 33.33% 100% 100% 100% 80% Ownership Approx. 5.6m (i) 9.8m 8.3m 7.7m 4.2m Footfall Q&A Vacancy Fully let 2.2% 3.3% 4.4% 5.9% APPENDICES (i) Estimate 75
Retail tenant exposure INTRODUCTION Direct Southern African Retail Portfolio Tenant profile - by Contractual Rent Top 10 tenants - by Contractual Rent SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Largest brand exposure 8.5 2.6 2.6 Other 6.2 20% 5.2 PROPERTIES OVERVIEW 0.4 CASTELLANA 5.6 4.4 0.6 4.9 Top 10 0.9 0.8 tenants FINANCIAL PERFORMANCE 4.0 DEBT, TREASURY AND 2.3 44% 0.3 3.6 of Retail 2.9 Rent 0.5 3.5 2.1 STRATEGIC PLANS AND PROSPECTS 0.9 3.2 Nationals 2.2 0.8 80% 2.8 Q&A 2.0 0.5 APPENDICES 1.9 1.7 0.1 76
Retail category exposure INTRODUCTION Well diversified mix of tenant categories Category profile by rent Category profile by GLA SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 29% Fashion 24% 13% Grocery/ Supermarket 22% PROPERTIES OVERVIEW CASTELLANA Banking 8% 5% 7% Food 5% 6% Home Furnishings/ Art/ Décor 8% FINANCIAL PERFORMANCE DEBT, TREASURY AND 4% 7% Department Stores 3% 3% Health & Beauty 3% 2% Sporting/ Outdoor Goods & Wear 2% 1% Restaurants & Coffee Shops STRATEGIC PLANS AND PROSPECTS 2% 1% Cell Phones 2% 1% Bottle Stores 1% 1% Q&A Electronics 1% 0% APPENDICES Accessories 19% 20% Other 77
Retail tenant expiry profile INTRODUCTION 47% of contractual rent expiring in FY2023 and beyond (WALE 3.8 years) % of Contractual Rent Cumulative SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 100 68 PROPERTIES OVERVIEW CASTELLANA 53 32 FINANCIAL PERFORMANCE DEBT, TREASURY AND 32 15 21 17 15 March 2020 March 2021 March 2022 March 2023 Beyond March 2023 STRATEGIC PLANS AND PROSPECTS For the 6 months ended 30 September 2019 retail leases were concluded with: Total contract value R561m Q&A Total rentable area 68 154m² APPENDICES Tenant Retention 82% 78
Retail vacancies INTRODUCTION 36 Properties Fully let or with vacancies lower than 1 000m² Fully Let Durban Workshop Germiston Meadowdale Mall SOUTHERN AFRICAN RETAIL Giyani Plaza PORTFOLIO OVERVIEW Mbombela Truworths Centre Piet Retief Shopping Centre Pretoria Kolonnade Retail Park Queenstown Nonesi Mall Rustenburg Edgars Building Soshanguve Batho Plaza Thohoyandou Thavhani Mall Ulundi King Senzangakona Shopping Centre Vacancy lower than 1 000m² Pinetown Pine Crest (937m²; 2.2%) PROPERTIES OVERVIEW Emalahleni Highland Mews (841m²; 5%) Vereeniging Bedworth Centre (748m²; 2.2%) 36 Properties CASTELLANA Boksburg East Rand Mall (641m²; 1.9%) 77% of Retail Portfolio GLA Durban Phoenix Plaza (635m²; 2.6%) Katutura Shoprite Centre (610m²; 5.7%) 1.6% Vacant Daveyton Shopping Centre (582m²; 3.3%) Oshakati Shopping Centre (532m²; 2.2%) Bloemfontein Plaza (517m²; 1.2%) Hammanskraal Renbro Shopping Centre (466m²; 3.5%) Monsterlus Moratiwa Crossing (461m²; 3.8%) Pietermaritzburg The Victoria Centre (436m²; 4.2%) FINANCIAL PERFORMANCE DEBT, TREASURY AND Ondangwa Shoprite Centre (420m²; 7.1%) Roodepoort Ruimsig Shopping Centre (399m²; 3.5%) Soweto Dobsonville Mall (337m²; 1.3%) Gugulethu Square (323m²; 1.3%) KwaMashu Shopping Centre (293m²; 2.6%) Tzaneen Maake Plaza (243m²; 2.2%) Hammarsdale Junction (238m²; 1.2%) Atlantis City Shopping Centre (215m²; 1%) Elim Hubyeni Shopping Centre (173m²; 1.4%) Makhado Nzhelele Valley Shopping Centre (130m²; 2.5%) Ermelo Game Centre (84m²; 1.3%) STRATEGIC PLANS AND PROSPECTS Springs Mall (48m²; 0.4%) Ga-Kgapane Modjadji Plaza (27m²; 0.9%) Vacancy greater than 1 000m² 7 Properties Roodepoort Hillfox Power Centre (2 951m²; 7.7%) Mbombela Shoprite Centre (2 871m²; 20.5%) 18% of Retail Portfolio GLA Windhoek 269 Independence Avenue (2 101m²; 16.4%) Letlhabile Mall (1 826m²; 10.7%) 9.0% Vacant Q&A Randburg Square (1 803m²; 4.4%) Moruleng Mall (1 494m²; 5.9%) Oshikango Shopping Centre (1 095m²; 12%) APPENDICES Development Vacancy 2 Properties Welgedacht Van Riebeeckshof Shopping Centre (531m²; 10.3%) 5% of Retail Portfolio GLA Phuthaditjhaba Maluti Crescent (297m²; 0.8%) 2.9% Development Vacancy 79
Ratio of net cost to property revenue – retail portfolio INTRODUCTION Good progess in cost containment SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Average 17.7 Average 16.7 PROPERTIES OVERVIEW CASTELLANA 20.2 19.4 18.6 18.1 FINANCIAL PERFORMANCE 17.8 17.0 17.0 DEBT, TREASURY AND 16.9 16.1 16.3 16.1 15.9 15.8 15.2 STRATEGIC PLANS AND PROSPECTS 2014 2015 2016 2017 2018 2019 2020 Forecast Q&A APPENDICES All expenses All expenses excluding rates & taxes and electricity 80
Southern African total portfolio composition INTRODUCTION Top 15 assets make up 60% of the total portfolio Sectoral Profile - by Value Sectoral Profile - by GLA SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Top 15 Top 15 By Value By GLA Properties Properties 92% Retail 87% 60% 46% PROPERTIES OVERVIEW 3% Industrial 7% CASTELLANA of Total of Total 3% Offices 4% Value GLA 1% Motor Related 1% 0.4% Residential 1% 0.1% Vacant Land 0% FINANCIAL PERFORMANCE DEBT, TREASURY AND Geographic Profile - by Value Geographic Profile - by GLA By Value By GLA 40% Gauteng 44% STRATEGIC PLANS AND PROSPECTS 21% KwaZulu-Natal 16% 8% Free State 8% 8% Western Cape 6% 7% Limpopo 7% 6% Namibia 6% Q&A 4% North West 5% 3% Mpumalanga 5% APPENDICES 3% Eastern Cape 3% 81
Southern African total portfolio tenant exposure INTRODUCTION Low risk with 77% national tenants Top 10 Tenants - by Contractual Rent Top 10 Tenants - by occupied GLA SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Other Other 23% 23% Top 10 Top 10 Diversified across Tenants Tenants 1 226 tenants 41% 46% PROPERTIES OVERVIEW of Total of Total Nationals CASTELLANA Nationals GLA Rent 77% 77% FINANCIAL PERFORMANCE DEBT, TREASURY AND Tenant Profile - by Contractual Rent (%) Tenant Profile - by occupied GLA (%) 8.5 7.8 8.2 5.7 2.4% Ackermans 2.1% Ackermans 5.2 6.9 2.4% Pep Stores STRATEGIC PLANS 2.0% Pep Stores AND PROSPECTS 4.5 4.4 3.7 4.3 2.4% Jet 3.3 3.9 1.6% Edgars 3.2 3.2 Q&A 1.9% Jet 3.0 3.1 0.8% Edgars 2.6 2.2 APPENDICES 1.8 1.7 82
Southern African total portfolio tenant expiry profile INTRODUCTION 47% of contractual rent expiring in FY2023 and beyond (WALE 3.7 years) % of Contractual Rent % of Contractual Rent Cumulative SOUTHERN AFRICAN RETAIL 100 PORTFOLIO OVERVIEW 68 53 32 33 15 14 20 19 PROPERTIES OVERVIEW CASTELLANA Mar-20 Mar-21 Mar-22 Mar-23 Beyond Mar-23 % of GLA % of GLA Cumulative 100 FINANCIAL PERFORMANCE 63 DEBT, TREASURY AND 37 50 33 17 13 18 15 3.8 14 Vacant Mar-20 Mar-21 Mar-22 Mar-23 Beyond Mar-23 STRATEGIC PLANS AND PROSPECTS For the 6 months ended 30 September 2019 leases were concluded with: Total contract value R596m Q&A Total rentable area 83 209m² APPENDICES Tenant Retention 80% (retail retention 82%) 83
Southern African total portfolio vacancy profile INTRODUCTION Vacancy contained at 3.6% of contractual rent 19.6 18.3 SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 9.5 Vacancy 3.6% of 5.3 3.6 3.6 3.0 3.0 2.9 Rent PROPERTIES OVERVIEW CASTELLANA Retail Industrial Offices Residential * Total Mar-19 Sep-19 FINANCIAL PERFORMANCE DEBT, TREASURY AND 21.0 20.0 15.6 Vacancy STRATEGIC PLANS AND PROSPECTS 3.8% of 5.7 5.1 GLA 3.9 3.8 3.0 2.8 Q&A APPENDICES Retail Industrial Offices Residential * Total Excluding development vacancy * Residential units were previously measured in number of units and not GLA and vacant rental is now included together with the change to measurement in GLA 84
Southern African total portfolio lease renewals INTRODUCTION Positive reversions Lease renewals SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 8.8 percentage escalation on 8.0 expiry rentals PROPERTIES OVERVIEW CASTELLANA Out of 201 retail leases renewed 70% were FINANCIAL PERFORMANCE positive, 18% DEBT, TREASURY AND flat and only 12% were negative) 2.5 1.9 STRATEGIC PLANS AND PROSPECTS Q&A Retail Industrial Offices Motor Average Related * APPENDICES * No motor related leases concluded during the period 85
Trading density growth INTRODUCTION Sustained trading density growth at competitive occupancy costs SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Rent-to-sales 5.4% 5.5% Rent-to-sales Trading density growth Rent-to-sales PROPERTIES OVERVIEW 5.3% 7.0% CASTELLANA Rent-to-sales 4.2% 5.9% Rent-to-sales 4.0% Rent-to-sales Rent-to-sales 5.9% 5.3% 4.8% 3.5% 3.1% 3.0% Rent-to-sales 2.9% FINANCIAL PERFORMANCE Rent-to-sales 5.0% DEBT, TREASURY AND 4.9% Rent-to-sales 2.1% Rent-to-sales 6.8% 1.8% 6.0% 1.1% 1.0% Rent-to-sales 7.1% STRATEGIC PLANS AND PROSPECTS (0.8%) Urban Rural Township Total Q&A APPENDICES Sep 2017 Sep 2018 Sep 2019 86
Tenant category, affordability and performance INTRODUCTION Capacity for growth remains 12.2% SOUTHERN AFRICAN RETAIL 11.5% PORTFOLIO OVERVIEW 10.8% 10.5% Average annual rent-to-sales ratio 10.2% 10.1% 9.9% 9.7% 9.6% 9.5% 9.4% 9.3% 9.3% 8.7% 8.6% 8.5% 8.4% 8.3% 8.1% 8.1% 7.8% 7.6% 7.5% 7.3% 5.8% 5.7% 5.3% 5.1% 5.1% 5.0% 4.9% 4.8% 4.7% 4.6% 3.9% 3.8% 3.7% 3.6% 3.3% 2.9% 2.8% 2.6% PROPERTIES OVERVIEW CASTELLANA Accessories Cell Phones Restaurants & Other Electronics Fashion Home Sporting/ Food Department Health & Beauty Department Bottle Stores Grocery/ Coffee Shops Furnishings/ Outdoor Goods Stores (<5k Stores (>5k Supermarket Art/ Antiques/ & Wear sqm) sqm) Décor FINANCIAL PERFORMANCE DEBT, TREASURY AND Average annual trading density growth 13.6% 13.1% 12.2% 11.2% 8.4% 7.6% 7.3% 7.2% 7.1% 6.0% 5.4% 5.4% 5.0% 4.5% 4.3% 4.3% 4.1% 3.9% 4.1% 4.0% 3.7% 3.3% 3.5% 2.5% 1.6% 1.4% 1.4% 1.5% 1.3% STRATEGIC PLANS 0.9% 1.0% 0.7% 0.7% AND PROSPECTS 0.6% 0.5% 0.4% 0.1% (0.1%) (0.8%) (1.0%) (2.0%) Q&A (7.2%) Sep 2017 Sep 2018 Sep 2019 APPENDICES 87
Southern African total portfolio contracted rental escalation profile INTRODUCTION Rental escalations still ahead of inflation SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Escalation percentage 8.2 7.9 7.8 7.6 7.5 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 PROPERTIES OVERVIEW CASTELLANA FINANCIAL PERFORMANCE DEBT, TREASURY AND STRATEGIC PLANS AND PROSPECTS Retail Industrial Offices Motor Related Total Q&A Mar-19 Sep-19 Recent New Leases and Renewals APPENDICES 88
Southern African total portfolio weighted average base rentals – R/m 2 INTRODUCTION Excluding recoveries 25.8% SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 165.70 3.3% 3.5% 146.67 139.26 134.78 132.06 131.68 127.54 PROPERTIES OVERVIEW 6.2% CASTELLANA 101.20 95.32 FINANCIAL PERFORMANCE 2.6% DEBT, TREASURY AND 59.31 57.83 STRATEGIC PLANS AND PROSPECTS Retail Industrial Offices Motor Related # Residential * Total Q&A Mar-19 Sep-19 APPENDICES # The increase in average rate for motor related properties is due to the sale of Linbro Galaxy drive which carried lower rentals. The 6-month growth in rental rates on the remainder of the motor related portfolio was 3.1%. * Residential units were previously measured in number of units and not GLA therefore no average rental based on R/m² was calculated in March 2019. 89
Weighted average base rentals R/m 2 (excluding recoveries) INTRODUCTION Southern African Retail portfolio Durban Phoenix Plaza Boksburg East Rand Mall SOUTHERN AFRICAN RETAIL Durban Workshop PORTFOLIO OVERVIEW Pinetown Pine Crest Mbombela Truworths Centre Windhoek 269 Independence Avenue Thohoyandou Thavhani Mall Daveyton Shopping Centre Springs Mall Gugulethu Square Phuthaditjhaba Maluti Crescent Atlantis City Shopping Centre Oshikango Shopping Centre PROPERTIES OVERVIEW Soweto Dobsonville Mall Katutura Shoprite Centre CASTELLANA Ga-Kgapane Modjadji Plaza Oshakati Shopping Centre Pietermaritzburg The Victoria Centre Giyani Plaza Welgedacht Van Riebeeckshof Shopping Centre Piet Retief Shopping Centre Queenstown Nonesi Mall Hammanskraal Renbro Shopping Centre FINANCIAL PERFORMANCE KwaMashu Shopping Centre DEBT, TREASURY AND Hammarsdale Junction Makhado Nzhelele Valley Shopping Centre Moruleng Mall Emalahleni Highland Mews Ondangwa Shoprite Centre Tzaneen Maake Plaza Roodepoort Ruimsig Shopping Centre Ulundi King Senzangakona Shopping Centre Monsterlus Moratiwa Crossing Pretoria Kolonnade Retail Park STRATEGIC PLANS AND PROSPECTS Elim Hubyeni Shopping Centre Soshanguve Batho Plaza Randburg Square Letlhabile Mall Mbombela Shoprite Centre Ermelo Game Centre Bloemfontein Plaza Q&A Germiston Meadowdale Mall Roodepoort Hillfox Power Centre Weighted average R134.78/m² Rustenburg Edgars Building APPENDICES Vereeniging Bedworth Centre 0 50 100 150 200 250 300 90
Growth in net profit from southern African property operations INTRODUCTION Like-for-like growth of 6.1% SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW 7.5% 6.8% 6.5% PROPERTIES OVERVIEW 6.1% CASTELLANA 5.8% FINANCIAL PERFORMANCE DEBT, TREASURY AND 3.4% STRATEGIC PLANS AND PROSPECTS Q&A 2015 2016 2017 2018 2019 Sep 19 APPENDICES Note: Historic data per Company Annual Results. 91
Southern African total portfolio – ratio of cost to property revenue INTRODUCTION Containing cost ratios Net cost to property revenue SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Average 17.1 Average 16.2 19.4 18.0 17.9 17.5 16.9 16.9 16.3 16.2 16.3 16.1 15.7 15.5 15.4 15.2 PROPERTIES OVERVIEW CASTELLANA 2014 2015 2016 2017 2018 2019 2020 Forecast All expenses All expenses excluding rates & taxes and electricity Column1 Column2 FINANCIAL PERFORMANCE DEBT, TREASURY AND Gross cost to property revenue Average 37.9 STRATEGIC PLANS AND PROSPECTS Average 20.3 38.7 37.8 37.6 38.3 37.9 37.9 36.8 22.0 20.8 20.6 19.9 19.6 19.5 20.1 Q&A APPENDICES 2014 2015 2016 2017 2018 2019 2020 Forecast * Current portfolio including acquisitions excluding sales 92
Valuation methodology INTRODUCTION Southern African property portfolio Valuations are based on multiple assumptions which involve some subjectivity. The key is consistency in applying the SOUTHERN AFRICAN RETAIL Science vs. art same methodology over time. We’ve applied consistent views and methodology since listing, with minor improvements PORTFOLIO OVERVIEW to the model in refining risk assessment and the build-up of discount and exit cap rates The portfolio is internally valued using the Discounted Cash Flow method and benchmarked against external valuations. Valuation policy 50% of the portfolio is externally valued every six months, ensuring that the total portfolio value is reviewed by external valuers once a year PROPERTIES OVERVIEW Comparison CASTELLANA The difference between the directors’ and external valuations were consistently within a narrow range of on average – directors’ vs. external approximately 2% over the past 6 years valuation The rolling 10 year government bond is used as base rate, to which a general property risk premium is applied. Further Calculation of base FINANCIAL PERFORMANCE DEBT, TREASURY AND risk premiums are applied per individual property depending on risk. This property specific risk is evaluated annually discount rate using a bespoke comprehensive risk / expected return model Calculation of exit 100bps risk loading for uncertainty of future cash flows is applied to the initial yield (discount rate less expected income growth) to calculate the exit capitalisation rate capitalisation rate STRATEGIC PLANS AND PROSPECTS Hold Period The hold period for valuation of multi tenanted properties is 4 years and single tenanted properties 10 years Q&A Value minimum of Properties on APPENDICES ₋ discounted cashflow over leasehold period with zero residual value or leasehold land ₋ discounted cashflow over 4 years plus perpetuity value of the 5th year’s net income 93
7 Appendix B Spanish Portfolio www.vukile.co.za 94
Spanish market outlook and political environment INTRODUCTION Spain still outperforming European peers Spain Economic Indicators (1) Retail Sales (% change pa) (1) SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Real GDP (% change pa) Spain France Germany Netherlands UK Private Consumption (real % change pa) Retail Sales growth (% pa) 8.0 6.0 PROPERTIES OVERVIEW 6.0 CASTELLANA 4.0 4.0 2.0 2.0 0.0 FINANCIAL PERFORMANCE 0.0 DEBT, TREASURY AND -2.0 -2.0 -4.0 -6.0 -4.0 -8.0 -6.0 STRATEGIC PLANS AND PROSPECTS -10.0 -12.0 -8.0 2 000 2 001 2 002 2 003 2 004 2 005 2 006 2 007 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017 2 018 2 019 2 020 2 021 2 022 2 023 2 000 2 001 2 002 2 003 2 004 2 005 2 006 2 007 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017 2 018 2 019 2 020 2 021 2 022 2 023 Q&A APPENDICES Despite political uncertainty, Spain still growing at better rates than Core Europe (1) Deloitte 95
Spanish portfolio footprint INTRODUCTION Spain portfolio profile Property rank SOUTHERN AFRICAN RETAIL by value PORTFOLIO OVERVIEW 9 3% Geographic profile % by value 10 1 El Faro Marismas del Polvorín 5 9% 11 2 PROPERTIES OVERVIEW Bahía Sur Edificio Alcobendas CASTELLANA 3 12 Los Arcos La Heredad 11 8 13 7% 17 4 Granaita Retail Park (i) La Serena (iii) 21% 15 9% 14 FINANCIAL PERFORMANCE 5 Vallsur Pinatar Park DEBT, TREASURY AND 12 11 1 15 13 6 Habaneras Mejostilla 12 16 7 Puerta Europa Motril Retail Park 6 3 18 2% 14 13 17 8 Parque Oeste (ii) Ciudad del Transporte STRATEGIC PLANS 4 AND PROSPECTS 10 49% 18 9 16 Parque Principado Edificio Bollullos 2 7 Q&A APPENDICES (i) Granaita is the integration of the former Kinepolis Retail Park, Kinepolis Leisure Centre and Alameda City Store into one asset. (ii) Parque Oeste comprises two adjacent properties that were acquired in two separate companies, but has been treated as a single combined property for reporting purposes (iii) La Serena comprises two adjacent properties that were acquired in two separate companies, but has been treated as a single combined property for reporting purposes Note: All data represents 100% of Castellana, Vukile shareholding is 82.54% at 30 September 2019 96
Spanish vacancy profile INTRODUCTION Vacant Area Mar 19 Vacant Area Sep 19 Portfolio Shopping Centres SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW Vacancy Vallsur (35 212m²) 3.1% Los Arcos (29 696m²) 1.4% of 4.3% Puerta Europa (29 742m²) 2.0% GLA Habaneras (24 166m²) 2.0% El Faro (43 407m²) 1.4% PROPERTIES OVERVIEW Bahía Sur (36 433m²) 2.3% Retail Parks CASTELLANA Granaita Retail Park (54 490m²) 0.7% Parque Oeste (13 604m²) 2.6% Retail Parks – fully let Ciudad del Transporte (3 250m²) FINANCIAL PERFORMANCE DEBT, TREASURY AND La Heredad (13 447m²) La Serena (12 405m²) Marismas del Polvorín (18 079m²) Mejostilla (7 281m²) Motril Retail Park (5 559m²) STRATEGIC PLANS AND PROSPECTS Parque Principado (16 246m²) Pinatar Park (13 261m²) Offices – fully let Edificio Bollullos (5 698m²) Q&A Edificio Alcobendas (11 046m²) APPENDICES 0m² 500m² 1 000m² 1 500m² 2 000m² 97
Spanish portfolio overview INTRODUCTION Top 10 assets El Faro Bahía Sur Los Arcos Granaita Retail Park (i) Vallsur SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW GAV €164.1m €142m €136.4m €114.9m €93.4m CASTELLANA Province Extremadura Andalucia Andalucia Andalucia Castilla Leon Gross Lettable 43 407m² 36 433m² 29 696m² 54 490m² 35 212m² Area FINANCIAL PERFORMANCE DEBT, TREASURY AND Monthly Rental €20/m² €31/m² €32/m² €10/m² €14/m² Sector Shopping Centre Shopping Centre Shopping Centre Retail Park Shopping Centre Primark, Zara, Media Zara, Sprinter, Decathlon , Sprinter, Carrefour, Yelmo Cines, STRATEGIC PLANS AND PROSPECTS Major Tenants Toys 'R' Us, Zara, Kiabi Markt Stradivarius Leroy Merlin H&M WALE 8.6 years 6.4 years 9.3 years 15.4 years 17.1 years Q&A Vacancy 1.4% 2.3% 4.3% 0.7% 3.1% APPENDICES (i) Granaita is the integration of the former Kinepolis Retail Park, Kinepolis Leisure Centre and Alameda City Store into one asset Note: All data represents 100% of Castellana, Vukile shareholding is 82.54% , WALE is to expiry of lease excluding break options 98
Spanish portfolio overview INTRODUCTION Top 10 assets Habaneras Puerta Europa Parque Principado Marismas del Polvorín Parque Oeste (i) SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW PROPERTIES OVERVIEW GAV €89.8m €62.6m €51.8m €34.7m €28.5m CASTELLANA Province Com. Valenciana Andalucia Madrid Asturias Andalucia Gross Lettable 24 166m² 29 742m² 13 604m² 16 246m² 18 079m² Area FINANCIAL PERFORMANCE DEBT, TREASURY AND Monthly Rental €19/m² €14/m² €16/m² €10/m² €8/m² Sector Shopping Centre Shopping Centre Retail Park Retail Park Retail Park Leroy Merlin, Zara, Primark, Yelmo Cines, Media Markt, Bricomart, Conforama, Media Markt, STRATEGIC PLANS Major Tenants AND PROSPECTS Forum Sport Mercadona Kiwoko, Worten Intersport Mercadona, Low Fit WALE 8.2 years 11.3 years 20.6 years 11.9 years 21.8 years Q&A Vacancy 2.0% 2.0% 2.6% Fully let Fully let APPENDICES (i) Parque Oeste comprises two adjacent properties that were acquired in two separate companies, but has been treated as a single combined property for reporting purposes Note: All data represents 100% of Castellana, Vukile shareholding is 82.54% % WALE is to expiry of lease excluding break options 99
Retail lease expiry profile INTRODUCTION 50% of contractual rent expiring in FY2029 and beyond (WALE 14.2 years to expiry and 2.8 years to break) Expiry Profile (% Rent) SOUTHERN AFRICAN RETAIL PORTFOLIO OVERVIEW % of Contractual Rent Cumulative 100 PROPERTIES OVERVIEW 46 54 50 CASTELLANA 45 40 37 29 7 22 8 5 5 5 7 4 15 3 11 4 6 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Beyond 2029 FINANCIAL PERFORMANCE DEBT, TREASURY AND Break Profile (% Rent) % of Contractual Rent Cumulative STRATEGIC PLANS AND PROSPECTS 100 98 98 94 94 91 83 75 57 42 Q&A 26 18 16 15 8 8 4 3 2 0 0 APPENDICES 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Beyond 2029 100
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