SA Corporate Year End 2016 Results Presentation March 2017 Agenda - - PowerPoint PPT Presentation
SA Corporate Year End 2016 Results Presentation March 2017 Agenda Highlights Rory Mackey Financial Performance Antoinette Basson South African Portfolio Review Rory Mackey Unlocking Value in the Retail Portfolio Rory Mackey
March 2017
Rory Mackey
Antoinette Basson
Rory Mackey
Rory Mackey
Rory Mackey
Rory Mackey
Rory Mackey
Rory Mackey
Team
2
4
6
28.83 30.15 32.75
10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 2011 2012 2013 2014 2015 2016 14.35 15.17 16.28 17.68 19.66 21.44 14.48 14.98 16.47 18.02 19.91 21.58 Interim Final 35.70 39.57 43.02
7
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2012 2013 2014 2015 2016 5.7% 7.3% 8.6% 11.2% 9.1% 3.5% 9.9% 9.4% 10.5% 8.4% Interim Final
8
Dec 2016 Dec 2015 % Rm Rm Variance Net Property Income - Standing Portfolio
1,078.649 984.576 9.6
Net Property Income - Acquisitions
115.725 47.675 142.7
Net Property Income - Buildings sold
10.636 27.822 (61.8)
Net Property Income
1,205.010 1,060.073 13.7
Taxation on distributable earnings
(1.008) 0.489 (306.1)
Investment in Joint Venture
60.350 9.207 555.5
Yield guarantee on investment in Joint Venture
7.871
(226.569) (231.146) (2.0)
Distribution related expenses
(47.569) (37.562) 26.6
Anti-cedent distribution
17.624 52.392 (66.4)
Distributable earnings
1,015.709 853.453 19.0
Distribution per unit (cents)
43.02 39.57 8.7
First six months
21.44 19.66 9.1
Second six months
21.58 19.91 8.4
9
39.57 1.40 2.83 (0.76) 2.54 0.85 (0.40) (3.01) 43.02 15 20 25 30 35 40 45 50
Distribution 31 December 2015 Increase in NPI
Portfolio Increase in NPI
Decrease in NPI - Sold Buildings Investment in Joint Venture, including yield guarantee Decrease in net interest paid Increase in distribution related expenses and tax Impact of share issuances Distribution 31 December 2016
10
Portfolio growth underpinned by acquisitions, development expenditure and upward revaluation.
12,392 15,022 811 598 (292) 1,513
4,000 6,000 8,000 10,000 12,000 14,000 16,000 Investment Properties FY 2015 Acquisitions Improvements / development costs Disposals Fair value adjustment Investment Properties FY 2016
11 R’bn cents
100 200 300 400 500 600 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 2012 2013 2014 2015 2016
Total Assets (Rbn) Market Cap (Rbn) NAV per share (cents) Share Price (cents)
12 Cents per share
436.4 21.6 61.7 (1.9 ) 2.9 (1.5) (19.9) 499.3 300 325 350 375 400 425 450 475 500 525 550
Opening NAV 1 January 2016 Distributable earnings for the period Revaluation of Investment Properties, Shares and Interest Rate Swaps Net exposure to Zambian JV Net new shares issued Other Non- distributable income statement items Distributions paid to shareholders Closing NAV 31 December 2016
Sources of Capital
13
Debt finance sources are diversified between banks and institutional borrowings.
Equity, 72.4% Bank Term Debts, 2.2% Institutional and Development Finance Institution Debts, 3.8% Bank Revolvers, 0.6% Syndicated Loans, 21.0% Equity Bank Term Debts Institutional and Development Finance Institution Debts Bank Revolvers Syndicated Loans
Active Debt Management
14
Notwithstanding low leverage, liquidity risk is actively managed via high hedge ratio’s and staggered debt maturities.
0% 20% 40% 60% 80% 100% 120%
1,000 1,500 2,000 2,500 2016 (1 Year) Q1 2016 (1 Year) Q2 2016 (1 Year) Q3 2016 (1 Year) Q4 2017 (2 Year) Q1 2017 (2 Year) Q2 2017 (2 Year) Q3 2017 (2 Year) Q4 2018 (3 Year) Q1 2018 (3 Year) Q2 2018 (3 Year) Q3 2018 (3 Year) Q4 2019 (4 Year) Q1 2019 (4 Year) Q2 2019 (4 Year) Q3 2019 (4 Year) Q4 2020+ (5+ Years) Interest Rate Risk (Hedged) (%) Debt Maturity Profile
15
Maturity and interest rate profile of interest-bearing debt WAR of 8.5%, weighted average tenor of 2.8 years, and WAM of 1.7%.
2016 movements Loan type: 6.88% Amortising 9.21% Term Loan (Syndication) 2.69% Term Loan (US$) 9.14% Term Loan (Syndication) 9.16% Term Loan (Syndication) 8.81% Revolving credit 8.96% Term Loan 8.71% Revolving credit 9.01% Term Loan 9.01% Term Loan 9.06% Term Loan 8.86% Term Loan (Syndication)
1,152 200 270 30
848 950 371 550 129
500 100
400 600 800 1,000 1,200 Dec 2017 Aug 2018 Sep 2018 Sep 2018 Nov 2018 Jan 2019 Mar 2019 Dec 2019 Jun 2020 Nov 2020 Dec 2021 Apr 2024
Amount Drawn Available
16
Maturity and interest rate profile of interest-bearing debt – WAR inclusive of fixes of 8.5%. Current LTV 29.0%
Loan type: 6.88% Amortising 9.13% Term Loan (Syndication) 3.59% Term Loan (US$) 9.06% Term Loan (Syndication) 9.08% Term Loan (Syndication) 8.73% Revolving credit 8.88% Term Loan 8.63% Revolving credit 8.93% Term Loan 8.93% Term Loan 8.98% Term Loan 8.78% Term Loan (Syndication) 1,152 200 270 30
848 950 371 550 129
500 100
400 600 800 1,000 1,200 Dec 2017 Aug 2018 Sep 2018 Sep 2018 Nov 2018 Jan 2019 Mar 2019 Dec 2019 Jun 2020 Nov 2020 Dec 2021 Apr 2024
Amount Drawn Available
17
Tenor and interest rate swaps profile – weighted average tenor – 3.4 years and rate
* Includes $27m swap at 1.79% (based on US LIBOR) 8.45% 7.40% 7.60% 4.65% * 6.35% 7.27% 6.51%
540 705 240 771 650 834 240
1,000 2017 2018 2019 2020 2021 2022 2023 Swap amount
18
310,341 1,161,688 (303,014) (895) (111,730) (3,269) (1,149,640) (263,903) (1,616) 304,390 36 (78,461) (949,330) 600,027 (44,550) (7,098) (21,596) 750,000 191,380 (1,400,000) (900,000) (400,000) 100,000 600,000 1,100,000 Balance 31 December 2015 Cash generated from operations Net finance costs Taxation paid Acquisition of subsidiaries Acquisition of Property, plant and equipment Acquisitions and Improvements to Investment Property Advances Letting commissions and tenant installations Disposal of investment properties Disposal of property, plant and equipment Increase in financial assets Distributions paid Issue of new shares Investments in shares Buy-back of shares Interest bearing borrowings - foreign Interest bearing borrowings - local Balance 31 December 2016
R '000
19 SAC: closing price v monthly volume traded Value traded as % of market capital
40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 100 200 300 400 500 600 Volume Traded Closing Price ( c ) FFB EMI GRT RES VKE FFA HYP SAC IPF RDF 0% 10% 20% 30% 40% 50% 60% 70% 80%
40,000 60,000 80,000 100,000
21
SA Corporate excluding Zambian JV
(Dec-15: R12.4bn) Zambian JV
(Dec-15: R938.5m) Traditional standing Portfolio:
discount rate 14.8%
capitalisation rate 8.9% 5,419 11,580 12,984 6,765
7,684 5,734 14,278 13,288 10,438 8,924 6,231 18,047 15,798 10,559 10,511
20,000
Industrial Retail Commercial AFHCO Average
Market Value per m²
December 2014 December 2015 December 2016
Sectorial Profile (% of GLA) Sectorial Profile (% of Market Value)
31% 45% 7% 17% Dec 2016 56% 26% 6% 12% Industrial Retail Commercial AFHCO Dec 2015 36% 41% 9% 14% Industrial Retail Commercial AFHCO Dec 2015 53% 27% 5% 15% Dec 2016
22
Dec 2015 Ownership Value Dec 2016 Ownership Value Contribution to increase in valuation (%) Balance Total of all retail properties as at valuation dates 4 954 6 766 36.6% Acquisitions 4 954 6 436 6.7% 29.9% Capex 4 954 5 926 10.3% 19.6% Adjustment in terminal capex 5 009 5 926 1.3% 18.3% Adjustment to perpetual vacancy provision 5 059 5 926 1.2% 17.1% Adjustment to letting commissions to reflect industry norms 5 211 5 926 3.4% 13.7% Electricity recoveries alignment with the portfolio performance 5 370 5 926 3.4% 10.3% Rent reversions aligned with portfolio rent to sales statistics 5 558 5 926 3.7% 6.6% Portfolio movement excluding adjustments 5 558 5 926 30.0% 6.6%
Geographical Profile (% of GLA) Geographic Profile (% of Market Value)
Overview – Geographical Analysis (excl. Rest of Africa JV)
23
57% 32% 6% 5% Gauteng KwaZulu Natal Western Cape South Africa: Other Dec 2015
59% 34% 5% 2%
Dec 2016 56% 35% 6% 3% Gauteng KwaZulu Natal Western Cape South Africa: Other Dec 2015
60% 30% 5% 5%
Dec 2016
24
50 Properties GLA 223,121m2 Market Value R2.6bn Weighted average capitalisation rate 9.7% Afhco also owns residential bulk of 79,925m2 to be redeveloped
Retail / Commercial 32% (Dec-15: 37%) Residential 68% (Dec-15: 63%)
By GLA
25 “A”: large national tenants, large listed tenants, government and major franchisees “B”: national tenants, listed tenants, franchisees, large regional tenants, medium to large professional firms “C”: other A 62% B 29% C 9%
Total Portfolio
64% 57% 61% 62% 30% 28% 21% 29% 6% 15% 18% 9%
0% 10% 20% 30% 40% 50% 60% 70%
Industrial Retail Commercial Total
per sector
A B C
Acquisitions, Disposals and Developments
26
Disciplined investment strategy across multiple channels.
1,758 811 1,949 292 434 9.3% 10.1% 10.6% 8.6% 7.4% 8.1% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%
1,000 1,500 2,000 2,500 Committed Developments Acquisitions Contracted Acquisitions Disposals Contracted and unconditional disposals Group WACC Cost / Carrying Value (Rm) Selling Price (Rm) Yield forecast 1st 12 months Exit yield on sales price
27 # Includes R4.2m in respect of land for development * Properties acquired for redevelopment ^ Acquired through the acquisition of shares in subsidiaries Property Sector Forward Yield % Purchase price (R000) Expected transfer Normandie Court, Johannesburg CBD Retail & Residential 11.0 22,960 Jan-16 Cambridge House, Johannesburg CBD Retail 10.0 20,223 Feb-16 Morning Glen Shopping Centre, Sandton Retail 9.6 293,500 Mar-16 81 Rissik, Johannesburg CBD ^ Retail & Residential 10.7 75,700 Jul-16 Platinum Place, New Doornfontein ^ Retail & Residential 9.9 90,600 Jul-16 Hartmann and Keppler, Doornfontein Retail & Residential * 6,200 Aug-16 Jabulani Mews, Soweto Residential 10.9 70,220 Oct-16 Greatermans, Johannesburg CBD ^ Retail & Residential 10.4 114,296 Nov-16 Jeppe Street Post Office, Johannesburg CBD Retail & Residential * 88,200 Dec-16 Rosewood and Beechwood, Randfontein # Residential 11.0 29,302 Dec-16 Total 10.1 811,201
28
* Transferred # Land/Bulk to be acquired for development @ Includes delayed transfer of Real right of extention amounting to R1.3m ^ Some portions already transferred
Contracted and unconditional Contracted and conditional
Property Sector Forward Yield % Purchase price (R000) Expected transfer 51 Pritchard, Johannesburg CBD Retail 11.0 175,000 Apr-17 Northgate Heights Phases 2-3, Northgate Residential 11.0 58,582 Jun 18 - Aug 18 African City Retail Phase 1, Johannesburg CBD Retail 10.0 40,313 Apr-17 Total 10.9 273,895 Property Sector Forward Yield % Purchase price (R000) Expected transfer Steelport Residential, Steelport Residential 10.3 79,781 * Jan-17 Friendship Town, Midrand Residential 11.0 72,247 * Feb-17 Reef Acres, Springs @ Residential 10.0 44,727 * Feb-17 Long Street Precinct Bulk, Jeppestown Residential # 37,500 ^Feb-17 - Sep-17 M&T Development - Burgundy, Centurion Residential 10.0 75,778 Mar-17 M&T Development - Minuet Phase 1-2, Midrand Residential 10.0 48,709 Mar 17 - Apr 17 Monis, Johannesburg CBD Retail & Residential 10.1 62,700 Jun-17 Calgro developments Phase 1-5, Various Residential 10.8 811,720 Jul-17 - Sep-18 M&T Development - Etude Phase 1-6, Midrand Residential 10.0 252,347 Aug-17 - Aug-18 Panama House, Johannesburg CBD Residential 10.5 98,000 Sep-17 Northgate Heights Phase 1, Northgate Residential 11.0 57,476 Sep-17 Milnerton, Cape Town Retail # 22,500 Apr-17 Erand, Midrand Residential # 12,100 May-17 Total 10.5 1,675,585
29
Contracted and Unconditional Disposals
@ 25% Undivided share # Sale of 50% undivided share; Exit yield calculated on sales price plus anticipated defensive capex ^ Transferred
Executed Disposals
Property Sector Exit Yield % Purchase price (R000) Transfer date 8 Paul Smit Street, Anderbolt Industrial 8.8 50,000 Feb-16 Checkers, Somerset West Retail 7.1 75,000 Feb-16 4 School Road, Pinetown Commercial 5.3 25,500 Mar-16 11 Columbine Place, Red Hill Industrial 7.8 55,000 May-16 50 Mangosuthu Highway, Umlazi @ Retail 8.9 12,236 May-16 83 Heidelburg Road, City Deep Industrial 7.5 36,000 Jun-16 199 North Ridge Road, Morningside Commercial 6.2 38,400 Aug-16 Total 7.4 292,136 Property Sector Exit Yield % Purchase price (R000) Expected transfer 35 Circuit Road, Westmead Industrial 7.6 15,000 ^ Jan-17 Lebombo Road, Garsfontein (portion) Commercial 6.2 12,000 Mar-17 Pine Crest Shopping Centre, Pinetown # Retail 8.2 406,500 Mar-17 Total 8.1 433,500
30
6.0%
2.3% 7.8%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Industrial Retail Commercial Total (excl. AFHCO) AFHCO Retail / Commercial 12 months to December 2016
31 8.0% 7.7% 8.1% 7.9% 9.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Industrial Retail Commercial Total (excl AFHCO) AFHCO Retail / Commercial Afhco residential rental increases of 8% to 9%
32
Vacancies Monthly 2017 2018 2019 2020 2021+ % of GLA 2.7% 6.3% 20.7% 20.2% 12.0% 9.5% 28.6% Cumulative 2.7% 9.0% 29.7% 49.9% 61.9% 71.4% 100.0% 2.7% 6.3% 20.7% 20.2% 12.0% 9.5% 28.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%
% of GLA
33
Vacancies Monthly 2017 2018 2019 2020 2021+ % of GLA 3.4% 7.5% 24.4% 11.5% 10.7% 17.3% 25.2% Cumulative 3.4% 10.9% 35.3% 46.8% 57.5% 74.8% 100.0% 3.4% 7.5% 24.4% 11.5% 10.7% 17.3% 25.2% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
% of GLA
34
1.4% 5.9% 12.7% 3.7% 0.3% 4.5% 11.1% 2.3% 1.1% 4.5% 8.8% 2.7% 0% 4% 8% 12% 16% Industrial Retail Commercial Total December 2014 December 2015 December 2016
35 Office subsector GLA (m2) % of total GLA Vacant GLA % Vacancy of GLA type % Vacancy of total Office GLA Stand Alone Office 58,800 68,5% 2,306 3,9% 2,7% Retail Office 19,770 23,0% 5,219 26,4% 6,1% Hospitals 7,265 8,5%
85,835 100% 7,525 8.8% 8.8%
36
1.2% 3.4% 7.8% 3.1% 0.3% 2.8% 8.0% 2.4% 0.9% 3.3% 5.4% 2.5% 0% 3% 6% 9% 12% Industrial Retail Commercial Total December 2014 December 2015 December 2016
37
1.8% 7.9% 6.1% 4.8% 5.6% 5.3% 3.4% 10.4% (Standing* 9.6%) 8.7%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% Retail / Commercial Residential Total December 2014 December 2015 December 2016
*Vacancy as at end February 2017 on the same standing portfolio reduced to 5.5%
38
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 69 67 53 138 167 129 70 119 20 40 60 80 100 120 140 160 180
Applications by Week
39 36.5% 35.0% 34.5% 33.8% 14.2% 14.3% 13.7% 12.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% Dec 2013 Dec 2014 Dec 2015 Dec 2016 Property expense ratio Property expense ratio excluding municipal expenses
40
Advertising 1.9% Bad Debt 1.1% Cleaning & Security 10.0% Municipal Expenses 63.5% Insurance 1.3% Legal Expenses 1.0% Letting Expenses 2.6% Maintenance 5.4% Sundry Expenses 2.2% AFHCO property management 6.1% Property Management Fee 4.9%
41
Tenant Debtors And Provisions Dec-16 Dec-15 Dec-14
Total Trade Receivables Trade receivable before bad debt impairment (Incl. VAT) 57,378 55,211 36,392 Provision for bad debts (22,881) (29,909) (21,080) (excluding debtors with credit balances) 34,497 25,302 15,312 Provision for bad debt Opening balance 29,909 21,080 27,921 Amounts written off during the year (12,069) (7,335) (17,218) Additional net provision recognised 5,041 16,164 10,377 Closing balance 22,881 29,909 21,080 Provision VAT inclusive 26,084 34,096 24,031 Ratios Provision as a % of total trade receivable 39.9% 54.2% 57.9% Provision as a percentage of rental income 1.3% 1.8% 1.5% Trade receivables as a percentage of rental income 2.8% 3.0% 2.3%
43 13.6 14.5
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0
TOTAL RETURN %
Super Regional Community
6.4 9.6
5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0
INCOME RETURN %
Super Regional Community
6.8 4.6
0.0 5.0 10.0 15.0 20.0 25.0 30.0
CAPITAL GROWTH %
Super Regional Community
Source: MSCI : Nov 2016
Since 2012, super regional and community trading performance has been counter cyclical. Super regional retailers cost of occupancy has increased.
44 0.0% 12.1%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 12 13 14 15 16
ANNUALISED TRADING DENSITY GROWTH
Super Regional Community 4 5 6 7 8 9 10 11 11 12 13 14 15 16
GROSS RENT TO SALES RATIO
Super Regional Community
Source: MSCI : Nov 2016
Smaller format retail performance driven by food category with substantially higher trading density
45
0.0 5.0 10.0 15.0 20.0 25.0 30.0 Apparel Department Stores Food
% OF GLA
Super Regional Community 0.0 10,000.0 20,000.0 30,000.0 40,000.0 50,000.0 60,000.0 Apparel Department Stores Food
ANNUALISED TRADING DENSITY
Super Regional Community
Source: MSCI : Nov 2016
46
Property Estimated Cost (Rm) @ Yield %
East Point 492 9.0 Comaro Crossing 60 10.0 (Budgeted 8.0) Stellenbosch Square 24* 11.0 Umlazi Mega City (Phase 1 & 2) 220* 9.3 Completed Subtotal 796 9.2 Hayfields Mall 37 9.0 Umlazi Mega City (Phase 3) 43* 9.3 Midway Mews 33 8.7 (ex Def capex – 9.5) Cambridge Crossing 47 9.1 (ex Def capex – 11.5) Kempton Park 71 10.0 51 Pritchard Street^ 25 11.0 Current Redevelopments Subtotal 256 9.6 Total Redevelopments 1,052 9.3 * Represents SA Corporate ownership portion of development costs ^ Transfer pending @ Includes capitalised interest Morning Glen redevelopment currently in planning
47
Property Date GLA Increase Increase in Sales Bluff Towers Dec 15 13.2% 27.2% Stellenbosch Square Mar 16 12.1% 29.1% Comaro Crossing Nov 16 5.5% 18.1%
48
Introduction of enhanced services and food tenant mix to high density residential node of Paulshof
Edgars building (15 039m2 ) opposite Stuttafords Acquisition Cost = R175 million Yield = 10.3%
49
Redevelopment Estimate = R25 million @ 11% Downscaling of Edgars from 14’000 sqm to 6’000 sqm Expected Acquisition + Development Yield = 10.5%
50
Comaro Crossing Midway Mews
New Projects Size (kW) Cost (Rm) Yield (%) Montana Crossing 900 9.9 14.2 Willow Way 400 4.5 14.5 Rhodesdene 200 2.8 13.1
51
# - 50% undivided share; Exit yield calculated on sales price plus defensive capex * - 25% Undivided share ^ - 50% Undivided share Cost (Rm) Yield Completed Developments 796 9.2 Developments in Progress 231 9.3 Acquisition of Morning Glen 294 9.6 Acquisition & Redevelopment of 51 Pritchard Street 200 10.5 Total 1521 9.5 Property Transfer Gross Selling Price (Rm)) Exit yield on sale price (%) Pine Crest Shopping Centre, Pinetown # Mar-17 407 8.2 50 Mangosuthu Highway, Umlazi * May-16 12 8.9 Checkers, Somerset West Feb-16 75 7.1 Middelburg Pick n Pay, Middelburg Sep-15 24 8.3 The Boulevard, Melville Apr-15 31 7.4 Stellenbosch Square, Stellenbosch ^ Feb-15 40 7.8 Philani Valley Shopping Centre, Umlazi Nov-13 41 3.5 The Ridge, Roodepoort Mar-13 30 9.0 Clubview Corner, Pretoria Jan-13 27 8.4 425 West Street, Durban Jan-13 55 10.0 Total disposals 742 8.0
East Park Mall Acacia Office Park Jacaranda Mall
53
Physical address Cnr Thabo Mbeki and Great East Road, Lusaka Category Retail % of total property value 62.6% GLA (m2) 28 780 Tenancy Multi-tenanted Major tenants Pick n Pay, Edgars, Food Lovers, Builders Warehouse, I-Store, Toys R Us, MTN National tenants by GLA (%) 66.0% Lease expiry by revenue (years) 2.4 Years Vacancy by GLA (%) 0.3% Weighted average gross rental / m² (USD) 14.0 Weighted average escalation (%) 3.1% Cnr Thabo Mbeki and Great East Road, Lusaka Office 22.2% 12 488 Multi-tenanted First National Bank Zambia, Ecobank Zambia, United Bank for Africa, Huawei Technologies 81.0% 2.9 Years 4.7% 17.5 3.3% Cnr Kabwe and Mushili Road, Ndola Retail 15.2% 14 539 Multi-tenanted Pick n Pay, FurnMart, Carnival Furniture, Zamjoy, Pep, MTN 34.1% 3.9 years 25.7% 4.9 2.1%
* Excludes extended area under development # High vacancies were a result of a strategic initiative whilst a potential redevelopment
let in January 2017, reducing the Zambian portfolio retail vacancy to 3.7% * #
55
56 Building
Retail m² Construction costs (Rm) Yield Jeppe Post Office 550 14,000 276 11.0% Hartmann & Keppler 109
11.0% Long Street Precinct 1,150
11.0% Randfontein 156
11.0% Totals 1,965 14,000 984 11.0%
TAXI RANK JR 212 TAXI RANK JR 050
57
58
JHC HOUSING SOCIAL HOUSING
SECTIONAL TITLE HOUSING
TRAIN STATION
59
1, 178 UNITS
60
61
62 * Redevelopment of vacant offices ^ SA Corporate has 51% share Partner Development
Yield Completion date M&T Development Burgundy, Centurion West 121
10.0% Mar-17 M&T Development Minuet, Midrand 71
10.0% Mar-17 to Apr-17 M&T Development Etude, Midrand 384
10.0% Aug-17 to Aug-18 Collier Morgan Panama House 221 733 98 10.5% Sep-17 OTL Developers Northgate Heights 146
11.0% Sep-17 to Aug-18 OTL Developers 252 Montrose* 156
10.6% Feb-18 Calgro M3 ^ South Hills 892
10.8% Jul-17 to Sep-18 Calgro M3 ^ Portion 4 and 5 Jabulani 288
10.8% Jul-17 to Nov-17 Calgro M3 ^ Scotsdene 844
10.8% Jul-17 to Sep-18 Calgro M3 ^ Fleurhof Ext 11 828
10.8% Jul-17 to Sep-18 Calgro M3 ^ Belhar 1,000
10.8% Nov-17 to Sep-18 Total 4,951 733 1,502 10.6%
63
* SA Corporate has 51% share
65
In 2016, through proactive asset management interventions and focussed operational management, SA Corporate has positioned its property portfolio to generate sustainable and defensive income whilst establishing a pipeline for growth. In particular:
by the repositioning and redevelopment of a number of newly acquired and currently owned shopping centres.
quality and affordable accommodation in the Johannesburg inner city. This established residential rental platform is now well poised to diversify its geographic spread in high demand nodes through strategic partnerships with the largest developers of residential property in the country.
properties which will continue to generate strong annuity income through focussed tenant retention, tenant-driven improvements and recycling capital. The Board’s view of future prospects is that distribution growth of between 6% and 8% for the 2017 year can be anticipated.