delta property fund - results presentation...results presentation for the year ended 28 february...

www.deltafund.co.za

P RO P E R T Y F U N D

RESULTS PRESENTATIONfor the year ended 28 February 2019

01

02

03

04

05

06

AGENDA

Introduction and Business Update


Financial Review

Portfolio Review

Conclusion

Questions & Answers

Annexures

www.deltafund.co.za


INTRODUCTION AND BUSINESS UPDATESandile Nomvete

RESULTS PRESENTATION FOR THE YEAR ENDED 28 FEBRUARY 2019

INTRODUCTION TO DELTA

4

Level 2B-BBEE

Highlyempowered fund

Rating on new sector codes

R1.8bn

Marketcapitalisation of

as at 28 February 2019

Pretoria & Durban CBDs

Dominant in

R109.1m

Average propertyvalue of

(Feb 2018 : R109.6m)

R11.8bn

Assets under management of

By 100% black-owned asset manager

79.0%

Sovereignunderpinned

JSE listed REIT

of revenue from sovereign tenants


BUSINESS UPDATE

5

Delta experienced its toughest and most challenging year since its listing. Slow pace of lease renewals from DPW,increased vacancies and higher cost of debt resulted in distributable earnings declining. The board and managementsubsequently decided to retain 25% of earnings to facilitate capital expenditure and working capital in the business,resulting in distribution of 55.39 cents per share being declared.

Leasing Progress

Robust engagement and negotiations held during FY2019

Significant progress in renewals underway in FY2020

New leasing

Vacancies

Tough economic environment with many funds impacted by higher vacancies

Bloemfontein provincial leases continue to impact vacancies with tenants moving to alternate premises

Sunninghill still challenging, however, significant progress seen in the market recently


Debt Funding

Low WALE and non-conclusion of DPW renewals significantly impacted our ability to renew expiring facilities for longer periods

Our long-standing banking partners approved extensions, however, at higher interest costs and associated fees due to increased risk

Disposals

Our market is limited due to our assets that are configured to sovereign tenants

BEE opportunities to acquire and secure long-term leases prevalent in the market but access to funding seen as barrier

Improvement in economic environment and increased lending by banks post elections should provide traction on disposals

BUSINESS UPDATE cont…

www.deltafund.co.za


FINANCIAL REVIEWShaneel Maharaj


FINANCIAL PERFORMANCE 2019

8

45.1%

Loan tovalue of

(Feb 2018 : 41.3%)

59.8%

Fixeddebt of

(Feb 2018 : 85.4%)

67.8%

Propertyoperating margin at

(Feb 2018 : 73.5%)

2.1

Interestcover ratio

(Feb 2018 : 2.4)

R2.1billion

Extendedfacilities totalling

(Feb 2018 : R941 million)

31 days

Debtors outstanding at

(Feb 2018 : 18.5 days)


2019 2018 2017 2016 2015

Revenue (R’000) 1 547 365 1 564 053 1 617 344 1 247 582 1 009 207

Net property income (R’000) 1 037 786 1 149 885 1 153 341 925 531 764 884

Finance costs (R’000) 537 281 482 179 470 580 412 713 316 380

Cost to income ratio - gross method 32.2% 26.5% 28.8% 26.4% 26.0%

Cost to income ratio - net method 18.3% 12.1% 12.4% 12.2% 10.2%

Investment property (R’000) 11 350 331 11 507 600 11 381 421 10 095 181 8 420 400

Investment in listed securities (R’000) 461 822 381 868 429 588 472 546 502 986

Borrowings (R’000) 5 258 471 4 952 690 5 099 227 5 094 310 4 508 565

Loan to value (LTV) 45.1% 41.3% 41.5% 47.2% 49.9%

Weighted average interest rate 10.2% 9.2% 9.2% 8.8% 8.1%

Average debt expiry period (years) 0.8 1.5 1.9 2.3 2.4

Average debt fix expiry period (years) 2.1 1.5 2.2 2.1 2.4

Fixed: floating debt (excluding revolvers) 59.8% 85.4% 85.1% 83.5% 78.0%

Net asset value per share (exclusive of deferred tax) R9.30 R10.06 R9.91 R10.61 R10.02

FIVE YEAR REVIEW


Feb 2019 Feb 2018

Net property income (excl. straight line accrual) 1 072 090 1 147 865

Administration expenses (79 727) (53 329)

Net finance costs (511 249) (462 483)

Dividend income - GRIT 39 187 35 666

Other income 6 356 20 287

Antecedent interest 569 257

Prior year retained earnings distributed - 3 378

Distributable income for the period 527 226 691 641

Number of shares in issue 714 229 718 711 844 486

Full year distributable earnings per share (cents) 73.84 97.24

Distribution per share declared for the year (cents) 55.39 97.24

DISTRIBUTABLE INCOME STATEMENT


HISTORIC DISTRIBUTION PER SHARE (CENTS/SHARE)

23,7

32,5

40,2

72,7

40,0 44,1

84,1

42,9 47,9

90,8

45,9 51,3

97,24

46,450,8

97,24

39,4

16,0

55,39

FY2013 H1 Aug-13

H2 Feb-14

FY2014 H1 Aug-14

H2 Feb-15

FY2015 H1 Aug-15

H2 Feb-16

FY2016 H1 Aug-16

H2 Feb-17

FY2017 H1 Aug-17

H2 Feb-18

FY2018 H1 Aug-18

H2 Feb-19

FY2019

H1 – Interim

H2 – Final

Total – Full year

ANALYSIS OF DISTRIBUTIONS DECLARED

15.6%9.6% 7.2%23.1% 8.7% 7.1%8.0% 1.0% (1.0)% (15.1)% (68.5)% (43,0)%7.1% 7.1% 0%


691 641 6 466 5 196 3 521 312 (3 378) (13 931) (19 953)(36 642)

(48 767)

(57 240)

527 224

H2 Feb 2018 Net propertyincome

Adminexpenses

Dividendincome (Grit)

Antecedentdividend

Prior yearretainedearnings

distributed

Other income Vacancies Disposals Net financecosts

Provisionsraised

H2 Feb 2019

DISTRIBUTABLE EARNINGS BRIDGE

R’000


DescriptionAmount (R’000)

%

Net property income (NPI) Feb 2018 1 147 865

Increased NPI from base portfolio held at 28 Feb 2018 (36 353) (3.2)%

NPI attributable to disposals and non-core assets FY18 (39 422) (3.4)%

NPI Feb 2019 (excl. straight line accrual) 1 072 090 (6.6)%

Increased NPI from base portfolio held at 28 Feb 2018 (36 353)

NPI attributable to Disposals and non-core assets FY19 690

Like-for-like increase in NPI Feb 2019 (35 663) (3.1)%

LIKE-FOR-LIKE NET PROPERTY INCOME ANALYSIS


R’000 Feb 2019 Feb 2018 Change %

ASSETS

Non-Current assets 10 377 347 10 919 425 (4.96%)

Investment property 9 913 811 10 535 000 (5,96%)

Fair value of property portfolio 9 755 209 10 342 418 (5.68%)

Straight line rental income accrual 158 602 192 582 (17.64%)

Investment in other assets 461 822 381 868 20.94%

Other non-current assets 1 714 2 557 (32.97%)

Current assets 453 205 543 256 (16.58%)

Non-current assets held-for-sale 1 436 520 972 600 47.70%)

Total assets 12 267 072 12 435 281 (1.35%)

EQUITY AND LIABILITIES

Total equity 6 641 445 7 158 592 (7.22%)

Liabilities 5 625 627 5 276 689 6.61%

Non-current liabilities 1 470 696 2 720 230 (45.93%)

Current liabilities 4 154 931 2 556 459 62.53%

Total equity and liabilities 12 267 072 12 435 281 (1.35%)

STATEMENT OF FINANCIAL POSITION


Rands

NAV BRIDGE

10,06

0.62 0.11 0.02

-0.93

-0.32

-0.20 -0.02 -0.02 -0.01 -0.01

9.30

28 Feb 2018 Contributionfrom operations

Fair value oflisted

investments

Dividendreinvestment

Dividend paid Fair value ofinvestment

property

Deferredconsideration

settled

Fair value offinancial

instruments &forex losses

Debt facilitiesraised

Disposals FCTR recognisedin profit and loss

28 Feb 2019

15


As at 28 February 2019

Facility Type R’ m Weighted Ave. Rate

Floating bank facilities 4 339 11.0%

Fixed bank facilities 212 9.5%

Revolving bank facilities 706 9.7%

Total borrowings, net of accrued interest 5 257 10.2%

Accrued interest 17

Debt Structuring fees (16)

TOTAL 5 258

Total fixed bank facilities 212 9.5%

Interest rate swap contracts 2 020 7.9%

Cross currency swaps 139 Libor + 2.9%

Total fixed 2 371

Fixed % (excluding revolvers) 59.8% 10.2%

DEBT SUMMARY


Extended R2.1billion in expiring debt facilities during the year

59.8% (2018: 85.4%) of borrowings are fixed for an average period of 0.8 years (2018: 1.5) using a combination of interest rate swaps, cross currency swaps and fixed facilities. The deterioration in fix % was due to fixed facilities being converted into floating facilities when extended

The weighted average cost of debt increased to 10.2% (2018: 9.2%) primarily due to higher interest rates on facilities extended

Loan to value ratio increased to 45.1% (2018: 41.3%),impacted by the negative fair value adjustment on investment properties of R227 million coupled with increased borrowings. We expect an improvement in the LTV once leases are concluded and the portfolio is revalued

Interest cover ratio at 2.1 (2018: 2.4), impacted by higher interest costs and vacancies

DEBT COMMENTARY

www.deltafund.co.za


PORTFOLIO REVIEWOtis Tshabalala


OPERATIONAL PERFORMANCE 2019

19

73.6%

A distinct focus on sovereign tenants

151 018m2

Total leaserenewals in a

challenging environment

(Feb 2019 : 46 833m2)

12 537m2

Total new leases concluded

227 550m2

Bulk lease renewal proposal to DPW

(PMTE)

R115 million

Capitalexpenditure

10.8%

Vacanciesof

14.4% including assets held for sale

(SAPOA average 11.0%)Renewed 88 185m2 (37 leases) post Feb 19

Gross lettable area (GLA) (Feb 2018 : R185.4 million

Retail and office other


BUILDINGS REPRESENTED BY PROVINCE REPRESENTATIVE TENANTS

20

REPRESENTATION BY PROVINCE AND MAJOR TENANTS

North West

Limpopo

MpumalangaGauteng

KwaZulu Natal

Free State

Eastern Cape

Northern Cape

Western Cape

No of Buildings GLA (m2)

Gauteng 35 402 382

KwaZulu-Natal 17 278 264

Free State 17 85 980

Mpumalanga 11 30 251

Limpopo 7 44 885

Northern Cape 7 37 275

Western Cape 5 41 889

Eastern Cape 3 23 717

North West 2 5 780

Total 104 950 422


Office -Sovereign 1

Office - Other Industrial Retail Total

Number of properties 81 16 4 3 104

Gross lettable area (m2) by building type 4 693 737 192 711 40 258 23716 950 422

Vacancy (%) 10.9% 24.3% 33.1% 5.7% 14.4%

Value R8.8bn R2.1bn R0.2bn R0.3bn R11.4bn

Average rental (R/m2) 2 128.43 87.6 60.3 127.5 119.5

Weighted ave. escalation (%) 2 6.5% 6.5% 7.4% 7.3% 6.6%

Weighted ave. lease expiry (by revenue) - by building type 3

2.1 years 1.8 years 0.7 years 5.2 years 2.1 years

Weighted ave. lease expiry (by revenue) - tenant specific 2 2.1 years 1.7 years 0.7 years 2.8 years 2.1 years

Cost to income ratio (net) 12.7% 25.1% 7.1% 30.8% 18.3%

Cost to income ratio (gross) 24.4% 42.1% 29.7% 39.9% 32.2%

1 Multi tenant buildings are classified according to majority tenant type. Office – Other buildings therefore contain a minority element of sovereign tenants2 This classification looks specifically at the tenant type within each building3 Renewals in effect. Sovereign rentals & portfolio weighted average leaves expiry at year end were respectively R128.2 and 1.2 years4 The GLA is classified by the majority of the tenants in the buildings and includes vacancy. Sovereign tenanted GLA is 598 661 m2 with total tenanted GLA of 813 436 m2

PORTFOLIO BREAKDOWN


TENANT PROFILE BY GLA

73,6%

16,2%

6,9%

3,3%

38,7%

15,7%

12,4%

6,8%

Office - Sovereign

Office - Other

Retail

Industrial

Excludes vacancies. Total occupied GLA = 813 426m2

TENANT PROFILE BY RENTAL

79,0%

11,9%

7,4%

1,7%

38,6%

21,3%

11,9%

7,2%

11,9%

7,4%

1,7%

National Government

ProvincialGovernment

Local Government

State-OwnedEnterprise

22

DETAILED TENANT BREAKDOWN


UPDATE ON DPW

23

New cabinet trimmed from 36 to 28 ministers

• is in line with first world countries

• 6 departments have been merged

DPW has been expanded to include Infrastructure & Development and is now known as the Department of Public Works & Infrastructure Development

Minister De Lille appointed as Minister of Public Works & Infrastructure Development• widely known as a woman of action and integrity and is generally held in high esteem


UPDATE ON DPW cont…

24

Impact on Delta

We believe there will be minimal impact on space requirement from the departments that have been merged• The staff component at operational level is expected to largely remain the same

given that• Government is on a drive to create employment, which has culminated in the Department of

Labour being renamed Department of Labour & Employment

• Organised labour is vocal and active on job creation & job losses

We believe with Minister De Lille at the helm, there will be an impetus to transacting with DPW


DPW LEASING UPDATE

25

Since the interim period, DPW has implemented Supply Chain Management (SCM) Circular 48 which governs the terms with which DPW transacts with landlords:

The bulk lease renewal process is currently in its final stages

Delta currently qualifies for a maximum of 5 years with DPW

Delta has managed to secure a mixed bag of 3 to 5 year terms on the leases signed

There are ongoing discussions regarding the maximum tenures for REITS


DPW LEASING UPDATE cont…

26

At present the final tenure is largely driven by the the user departments’ requirements

Where the user department requires a short-term lease, for reasons such as the individual space requirements not meeting their needs, DPW is compelled to comply with the user’s request

Where the user department requests a longer lease term than 5 years, DPW has proposed an additional 4 year 11 month term as an option to meet the user’s request.• We have, however, advised DPW that we do not consider this as a 9 years & 11 month lease and

view it as a 5 year lease

Where the user department has not reverted back to DPW with its requirements • DPW is confirming 3 year tenures with a 3 month notice period at prevailing rentals as stipulated in

Circular 48

• We continue to negotiate around these lease clauses


Bulk renewal progress

• Stage 1 (DPW) and Stage 2 (user department) are 100% complete

• Stage 3 status: 37 leases totalling 88 185m² have been signed to date

• The remaining 139 365 m2 anticipated to be signed between June & July

UPDATE ON SOVEREIGN TENANTS

StatusNumberof Leases

GLA

Lease agreements concluded and signed 37 88 185 m²

Under negotiation 22 139 365m²

TOTAL 59 227 550 m²


Major leases concluded

LEASING UPDATE

151 018m2 were renewed of which 46 833m2 to the value of R113 million were renewed as at Feb 2019

The most notable renewals are:

Building Tenant GLA

In 2 Fruit Building In 2 Food 11 177 m²

Unisa House UNISA 9 068 m²

101 De Korte MMI 6 610 m²

5 Simba Road ESKOM 5 253 m²

Auditor General Auditor General of SA 2 130 m²

Domus National Heritage Council SA 1 127 m²

Du Toitspan Dept. of Correctional Services 1 090 m²

Total 36 455 m²

28


Several new leases were concluded measuring 12 537m2 to the value of R71.6 million

The most notable new deals are:

Tenant Retention

Tenant retention remains a significant focus for Delta

LEASING UPDATE cont….

29

Building Tenant GLA

Liberty Towers Mr Price 3 833 m²

5 Walnut Merchants SA 1 524 m²

TOTAL 5 357 m²


GLA - BY BUILDINGGauteng (42.3%)

KwaZulu-Natal (29.3%)

Free State (9.1%)

Limpopo (4.7%)

Western Cape (4.4%)

Northern Cape (3.9%)

Mpumalanga (3.2%)

Eastern Cape (2.5%)

North West (0.6%)

RENTAL - BY BUILDINGGauteng (44.7%)

KwaZulu-Natal (24.4%)

Limpopo (9.3%)

Free State (6.3%)

Western Cape (5.5%)

Northern Cape (3.7%)

Eastern Cape (3.1%)

Mpumalanga (2.8%)

North West (0.5%)

30

GEOGRAPHICAL AND GRADE SPLIT

OFFICE GRADE - BY GLA

A (15.5%)

B (84.2%)

C (0.3%)

OFFICE GRADE - BY RENTAL

A (21.4%)

B (78.5%)

C (0.1%)


The portfolio including non-current assets held for sale decreased by 1.96% to R10.4 billion

Marginal decrease in value, in the context of an incredibly difficult trading year not only for Delta but for most listed REITs in general

Reversions in light of recent renewals with DPW

Average cap rates of between 10% to 12% and the average portfolio value of R11 942 per m2

Valuers factored prevailing market conditions, rentals and tenures into their valuations

We intend to revalue the portfolio once all bulk renewals are completed

VALUATIONS

Number of PropertiesValue Feb 2019Pre Valuation

Value Feb 2019Post Valuation

Growth/(Loss) Percentage

104 properties R11 577 330 103 R11 350 330 000 (R227 000 103) (1.96%)

94 properties* R10 608 346 640 R10 397 230 000 (R211 116 640) (1.99%)

*Post transfer of 10 Bloemfontein properties to non-current assets held for sale


During the 2019 financial year, Delta sold one building, 12 New Street, for a total of R15.8 million. Subsequently Top Trailers site 1 transferred post year end, for R45 million

As at Feb 2019, Delta had approximately R1.4 billion on the disposal list at book value, of which 4 assets were concluded forR311.8 million

An additional 10 buildings from the Bloemfontein portfolio to the value of R483.4m were added onto the disposal list• Negotiations on these buildings are well advanced

DISPOSAL OF NON-CURRENT ASSETS

Property Building Classification Location GLA (m2) Sales price (R) Expected transfer Date

Top Trailers site 1 Industrial Wadeville, Johannesburg 15 741 45 000 000 9-May-19

Broadcast House Office - Sovereign Mthatha, Eastern Cape 4 934 33 000 000 End June 2019

Protea Coin Cape Town Office - Other Saxenberg Park, Cape Town 5 700 10 000 000 End July 2019

Block G Office - Sovereign Pretoria CBD 7 991 230 000 000 End August 2019

Sale agreements concluded 34 366 318 000 000

6 other non-current assets held for sale 53 396 635 100 000

10 other non-current assets transferredfrom Investment Property

Office - Sovereign Bloemfontein Portfolio 59 427 483 420 000

TOTAL NON-CURRENT ASSETS HELD FOR SALE 147 189 1 436 520 000

Property Building Classification Location GLA (m2) Sales price (R) Transfer Date

12 New Street Office - Sovereign Johannesburg CBD 2 368 15 750 000 27-Nov-18

Transferred FY2019 2 368 15 750 000


Property Commission House

Embassy Building Beacon HillPoyntons Fire Project

17 Harrison Street

Approved budget 16 000 000 28 000 000 40 000 000 32 500 000 4 500 000

Remaining budget Completed Completed 26 065 031 5 666 507 Completed

Description Tenant installation to all floors for new tenant secured

Façade Upgrade, Lifts and Tenant Installation. Complex project. Weather dependant

Internal refurbishment of tenant spaceTurnkey contractor appointed

Creating fire lobbies, sprinklers, hydrant system and smoke detection compliance

Tenant installation and replacement of escalators

CAPEX | EXISTING PORTFOLIO

Budget Tenant Installation

FY2020

FY 2020 FY 2021 FY 2022 Total Capex

Bulk Renewals 70 000 000 98 300 000 117 500 000 68 800 000 354 600 000

Balance of properties 95 000 000 113 000 000 77 900 000 284 900 000

Total Portfolio 70 000 000 193 300 000 230 500 000 146 700 000 639 500 000


Delta Property Fund is investigating the implementation of a Solar PV solution

This would reduce Delta’s carbon footprint

There is renewed focus on environmentally conscious landlords by tenants and investors

Benefits to Delta would include

Generation of carbon credits due to reduced footprint

Generating non GLA rental which will in turn result in increased valuation of the property

Long-term leases which may positively impact the WALE

Opportunity to better manage unforseen percentage increases in the cost of power whichwill affect property net income

A pilot project for the installation of the Solar PV systems is being considered on 3 properties

SUSTAINABILITY & GREENING INITIATIVES

www.deltafund.co.za


CONCLUSIONSandile Nomvete


The conclusion of South Africa’s sixth democratic election is expected to provide much needed political stability and improved business confidence within the economy. This transition is expected to materialise within twelve months, whereby we envisage positive capital inflow and further stability to interest rates

FY 2020 is going to be one of Delta’s most exciting and busiest years:

• Concluding bulk lease renewal

• Formulating, planning and executing capex linked to TI and general building condition

• Refinancing of expiring debt and managing forward looking debt expiry

• Driving significant effort into disposals to reduce debt and generate cash for capex and working capital

• Filling vacancies across the portfolio

Delta’s board and management remain committed to its sovereign strategy

CONCLUSION

www.deltafund.co.za


THANK YOUQuestions & Answers

ANNEXURES

01 Government Precinct Pretoria


02 Top 10 properties by value

03 Lease Expiry Profile

04 Sectorial Split

05 GLA and vacancy reconciliation

06 Leasing Outlook

07 Growth / Reversion


GOVERNMENT PRECINCT | PRETORIA


Forum Building

Location Pretoria

Sector*Office -

Sovereign

GLA 41 003 m2

Valuation R673 mil

Hallmark Building

Location Pretoria

Sector*Office -

Sovereign

GLA 26 255 m2

Valuation R410 mil

TOP 10 PROPERTIES

Poyntons

Location Pretoria

Sector*Office -

Sovereign

GLA 73 396 m2

Valuation R576 mil

Liberty Towers

Location Durban

Sector* Office - Other

GLA 40 080 m2

Valuation R426 mil

Delta Towers

Location Durban


GLA 41 677 m2

Valuation R405 mil

40

* Building sector determined by majority occupation of a tenant type. Some buildings have different types in occupation


Embassy Building

Location Durban

Sector*Office -

Sovereign

GLA 32 829 m2

Valuation R338 mil

The Marine

Location Durban


GLA 24 655 m2

Valuation R260 mil

TOP 10 PROPERTIES | CONTINUED

Hensa Towers

Location Polokwane

Sector*Office -

Sovereign

GLA 13 675 m2

Valuation R303 mil

Isivuno House

Location Pretoria

Sector*Office -

Sovereign

GLA 23 694 m2

Valuation R373 mil

NPA Building

Location Cape Town

Sector*Office -

Sovereign

GLA 10 552 m2

Valuation R249 mil

41

* Building sector determined by majority occupation of a tenant type. Some buildings have different tenant types in occupation


TOTAL PORTFOLIO - BY GLA

14,4%

34,0%

15,7%

19,4%

8,3%2,4%

3,0%2,8%

Vacant (14.4%)

Month to Month (34.0%)

29 Feb 20 (15.7%)

28 Feb 21 (19.4%)

29 Feb 22 (8.3%)

28 Feb 23 (2.4%)

29 Feb 24 (3.0%)

Beyond 28 Feb 2024 (2.8%)

TOTAL PORTFOLIO - BY RENTAL

38,6%

17,8%

22,9%

9,8%

2,1%6,3% 2,5%

Month to Month (38.6%)

29 Feb 20 (17.8%)

28 Feb 21 (22.9%)

28 Feb 22 (9.8%)

28 Feb 23 (2.1%)

29 Feb 24 (6.3%)

Beyond 29 Feb 2024 (2.5%)

42

LEASE EXPIRY PROFILE AT 28 FEBRUARY 2019


73,0%

20,3%

2,5% 4,2%

Office - Sovereign (73.0%)

Office - Other (20.3%)

Retail (2.5%)

Industrial (4.2%)

GLA - BY TENANT*

73,6%

16,2%

6,9% 3,3%



Retail (6.9%)

Industrial (3.3%)

43

SECTORAL SPLIT

RENTAL - BY BUILDING

81,3%

14,9%

2,1% 1,7%



Retail (2.1%)

Industrial (1.7%)

RENTAL - BY TENANT

79,0%

11,9%

7,4%1,7%


Office - Other(11.9%)

Retail (7.4%)

Industrial (1.7%)

*Excludes vacancies. Analysis focuses on what category the specific tenant falls into, rather than the category of the building

GLA - BY BUILDING


Properties (No.) Total GLA (m2) Vacant GLA (m2) Vacancy (%)

As at 28 February 2018 105 952 428 112 225 11.8%

Disposals 1 (2 368) -

Leases terminated - - 36 789

New letting of vacant space - - (12 537)

Adjustments - 361 508

As at 28 February 2019 104 950 422 136 986 14.4%

GLA AND VACANCY RECONCILIATION


Anticipated budgeted sovereign renewals

Sector No of Leases Total AreaW.A. ExpiryRate / m2 *

W.A. ProposedRate / m2 *

Escalation / (Reversion)

Leases on month-to-month or expiring by 31 August 2019

National government 49 198 559 109.87 100.74 (8.31%)

Provincial government 12 53 767 169.38 124.23 (26.65%)

Local government 4 38 650 144.76 103.31 (28.64%)

State-owned enterprise 15 36 752 110.96 107.62 (3.01%)

TOTAL 80 327 728 123.87 105.67 (14.69%)

LEASING | OUTLOOK

* All rentals quoted are gross rentals


Total leases concluded 1 March 2018 – 28 February 2019

No of Leases Total Area (m2)W.A Term (months)

W.A. Expiry Rate (R / m2) *

W.A. Achieved Rate (R / m2) *

Growth / (Reversion)

W.A. Esc. achieved

Renewed leases 50 46 833 19.12 112.22 107.93 (3.82%) 7.04%

GROWTH / REVERSION

*All rentals quoted are gross rentals

Renewals by Sector

Sector No of Leases Total AreaW.A. Term(months)

W.A. Expiry Rate / m2 *

W.A. Achieved Rate / m2 *

Escalation / (Reversion)

W.A. Esc. Achieved

National Government 1 1 090 36.00 100.26 112.36 12.07% 6.00%

State-owned enterprise 3 7 603 23.72 148.25 115.82 (21.87%) 6.32%

Industrial 4 11 177 6.00 77.17 83.34 8.00 0.00%

Office – other 21 23 593 20.05 105.90 103.84 (1.95%) 6.76%

Retail 21 3 370 40.48 191.42 196.78 2.80% 7.91%

Total 50 46 833 19.12 112.22 107.93 (3.82%) 7.04%


NOTES

47


NOTES

48

delta property fund - results presentation...results presentation for the year ended 28 february...

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