RESULTS PRESENTATION for the six months ended 31 August 2018€¦ · NOTES: RESULTS PRESENTATION...

RESULTS PRESENTATIONfor the six months ended 31 August 2018

P R O P E R T Y F U N D

Notes:

Introduction, Updates & Performance

Financial Review

Portfolio Review

Conclusion

Questions & Answers

Annexures

010203040506

AGENDA

88 Field Street, Durban

NOTES:

INTRODUCTION, UPDATES AND PERFORMANCESandile Nomvete

Liberty Towers, Durban

Notes:

RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 AUGUST 2018

INTRODUCTION TO DELTA

4

79.0%Sovereign underpinnedJSE listed REIT

R4.4bnMarketcapitalisation of

Pretoria & Durban CBDs

Dominant in

R109.8mAverage property value of

R12.0bnAssets under management of

of revenue from sovereign tenants

Most empowered fund

as at 31 August 2018

by 100% black-owned asset manager

Level 2 B-BBEE

rating on new sector codes

(Aug 2017: R103.2M)

NOTES:


UPDATE ON DELTA

5

Leasing Update Bulk lease negotiations continue with renewals expected before December 2018

41.5% of bulk negotiation at stage 3

Increased vacancies due to ongoing challenges with the Free State Portfolio

Interim review Total exposure to sovereign leases: 79.0% (Aug 2017: 75.9%) by rental income

Debtors days increased to 31.6 days (Aug 2017: 18.1 days)

R1.36 billion debt facilities on temporary refinance until lease renewals

Disposals challenging in a tough environment with harder sell assets remaining

Recapitalisation Ongoing effort towards a recapitalisation programme progressing

Extensive capital requirements in the long-term

Reduce debt funding, facilitate index inclusion and provide a platform for capex and growth

Notes:


INTERIM PERFORMANCE 2019

6

39.40cents per share

Half-year distribution of

R281.2million

Distributable earnings of

31.6 days

Debtors days at

Vacancy at

52 422m2

Renewed

9 613m²

Concluded

of new leases

13.3%of existing leasesSAPOA: 11.1%

NOTES:

FINANCIAL REVIEWShaneel Maharaj

Delta Towers, Durban

Notes:


FINANCIAL PERFORMANCE INTERIM 2019

8

43.0%Loan to value of

R1 366mFacilities refinanced temporarily

81.9%Fixed debt of

Debtors days at

68.0%Property operating margin at

2.2Interest cover ratio

(Feb 2018: 41.3%) (Feb 2018: R941m) (Feb 2018: 85.4%)

(Feb 2018: 2.4)

31.6 days(Feb 2018: 73.5%)(Feb 2018: 18.0 days)

NOTES:


FINANCIAL REVIEW

31 August 2018 31 August 2017 28 February 2018Revenue (R’000) 794 506 782 341 1 564 053Net property income (R’000) 525 560 576 376 1 149 885Finance costs (R’000) 248 604 235 967 482 179

Cost to income ratio - gross method 17.9% 11.0% 26.5%

Cost to income ratio - net method 32.0% 26.2% 12.1%Investment property including assets held for sale (R’000) 11 535 867 11 330 429 11 507 600Investment in listed securities - Grit (R’000) 453 468 379 482 381 868Borrowings (R’000) 5 121 953 5 035 744 4 952 690Gearing level 43.0% 42.3% 41.3%Weighted average interest rate 9.3% 9.2% 9.2%Average debt expiry period (years) 1.1 1.6 1.5Average debt fix expiry period (years) 1.1 1.8 1.5Fixed : floating debt (excluding revolvers) 81.9% 82.3% 85.4%Net asset value per share R9.93 R9.74 R10.06

9

Notes:


DISTRIBUTABLE INCOME STATEMENT- NON IFRS

10

31 August 2018 31 August 2017 28 February 2018Net property income 525 560 576 376 1 149 885

Straight-line rental income accrual 14 863 699 (2 020)

Administration expenses (46 672) (45 949) (53 329)

Realised foreign exchange gain/(loss) 51 (259) -

Net finance costs (235 906) (223 127) (462 483)

Dividend income - GRIT 21 747 18 587 35 666

Sundry income 1 103 19 20 287

Antecedent interest 476 - 257

Distributable earnings paid - 3 378 3 378

Distributable income for the period 281 222 329 724 691 641

Number of shares in issue 713 793 466 710 632 182 711 844 486

Weighted average number of shares 712 154 187 710 632 183 710 927 786

Distribution per share (cents) 39.40 46.40 97.24

NOTES:


TREND IN DISTRIBUTIONS

11

HISTORIC DISTRIBUTION PER SHARE (CENTS/SHARE)

23.7

32.540.2

72.7

40.044.1

84.1

42.947.9

90.8

45.951.3

97.2

46.450.8

97.2

39.4

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

7.1%

1.0%

0%H1 – Interim

H2 – Final

Total – Full year

(1.0)%

15.6%

9.6% 7.2%23.1%

8.7% 7.1%7.1%

8.0%

(15.1)%

Notes:


DISTRIBUTABLE EARNINGS BRIDGE

12

R’000

329,7243,158 1,084 476 310 (723) (3,378)

(11,006)(11,392)

(12,778)(14,254)

281,222

H1 Aug 2017 Dividendsreceived

(GRIT)

Other income Antecedentinterest

Realisedforeign

exchangegain/(loss)

Admin costsaving

Prior yearretainedearnings

distributed

Disposals Existingportfolio (exStraight line)

Net financecosts

Vacancies H1 Aug 2018 200 000

220 000

240 000

260 000

280 000

300 000

320 000

340 000

360 000

NOTES:


LIKE-FOR-LIKE NET PROPERTY INCOME (NPI) ANALYSIS

Description Amount (R’000) %

NPI Aug 2017 (excl. straight line rental income accrual) 577 075

Increased NPI from base portfolio held at 31 Aug 2017 # (25 646) (4.4)%

NPI from disposals in FY17 (11 006) (1.9)%

NPI Aug 2018 (excl. straight line rental income accrual) 570 423 (6.4)%

Increased NPI from base portfolio held at 31 Aug 2017 (25 646)

NPI from to disposals in FY18 357

Like-for-like increase in NPI (25 289) (4.4)%

13

# Like-for-like of 0.8% excluding once off doubtful debt provision raised

Notes:


SUMMARISED STATEMENT OF FINANCIAL POSITION

R’000 31 August 2018 31 August 2017 28 February 2018 Change %Aug ‘18 v Feb ‘18)

ASSETSNon-Current assets 11 016 677 10 525 979 10 919 425 0.9%Investment property 10 561 140 10 124 585 10 535 000 0.2%Fair value of property portfolio 10 383 457 9 934 190 10 342 418 0.4%Straight line rental income accrual 177 683 190 395 192 582 (7.7%)Investment in Grit 453 468 398 304 381 868 18.7%Other non-current assets 2 069 3 090 2 557 (19.1%)Current assets 525 072 413 446 543 256 (3.3%)Non-current assets held-for-sale 974 727 1 205 844 972 600 0.2%Total assets 12 516 476 12 145 269 12 435 281 0.7%EQUITY AND LIABILITIESTotal equity 7 084 784 6 920 648 7 158 592 (0.6%)Liabilities 5 431 692 5 224 621 5 276 689 2.9%Non-current liabilities 2 985 737 3 079 037 2 720 230 9.8%Current liabilities 2 445 955 2 145 584 2 556 459 (4.3%)Total equity and liabilities 12 516 476 12 145 269 12 435 281 0.7%

14

NOTES:


NET ASSET VALUE BRIDGE

RANDS

10.06 0.19

0.10

0.040.03 0.02

(0.52)

9.93

28 Feb 2018 Contribution fromoperations

Fair valueadjustment to

investment in GRIT

Fair value offinancial

instruments &forex

Related parties andvendor loans

Dividend incomefrom Grit

Dividend paid 31 Aug 2018 9.50

10.00

10.50

15

Notes:


DEBT SUMMARY

As at 31 August 2018Facility Type R’ m Weighted Ave. RateFloating bank facilities 3 673 9.1%Fixed bank facilities 796 8.9%Revolving bank facilities 629 8.9%Total borrowings, net of accrued interest 5 098 9.0%Accrued interest 37 -Debt structuring fees (13) -TOTAL 5 122

Total fixed bank facilities 796 8.9%Interest rate swap contracts 2 720 7.8%Cross currency swaps 225 Libor + 2.9%Total fixed 3 741

Fixed % (excluding revolvers) 82% 9.2%

16

NOTES:


SOURCE OF DEBT TOTAL: R5 098M

96.9%

3.1%

ZAR Bank Facilities (R4 940m)

USD Bank Facilities (R 158m)

DEBT CLASSIFICATION TOTAL: R5 098M

72.0%

15.6%

12.4%Floating Bank Facilities (R3 673m)

Fixed Bank Facilities (R796m)

Revolving Bank Facilities (R629m)

17

GRAPHICAL DEBT ANALYSIS

FINANCIER SPLIT TOTAL: R5 098M

63.0%

17.2%

16.7%

3.1%

Nedbank (R3 213m)

Standard Bank (R878m)

Investec (R849m)

Bank of China (R158m)

FIXED DEBT BREAKDOWN TOTAL: R3 741M

72.7%

21.3%

6.0%

Swap Contracts (R2 720m)

Fixed Banking Facilities (R796m)

Cross Currency Swaps (R225m)

Notes:


DEBT EXPIRY PROFILE

18

Rand

(mill

ion)

0

200

400

600

800

1000

1200

1400

1600

1800

2000

43466 43831 44197 44562

Debt Expiry Profile

Fixed Bank Facilities Floating Bank Facilities Revolving / Liquidity Bank Facilities Swap Contracts

28-Feb-19 28-Feb-20 28-Feb-2228-Feb-21

NOTES:


DEBT EXPIRY PROFILE

As at 31 August 2018Financier Type Expiry R’ mFY2019 EXPIRYNedbank 2 &5 year term facility 1 Sep 2018 730Investec 3 month term facility 7 Sep 2018 100Nedbank 5 year term facility 23 Sep 2018 100Standard Bank 3 year revolver facility 30 Oct 2018 140Nedbank 2 & 4 year term facility 7 Nov 2018 348Nedbank 1 &2 year term facility 7 Dec 2018 176Nedbank 2 year term facility 31 Dec 2018 200Nedbank 5 year term facility 1 Feb 2019 134Nedbank 5 year term facility 7 Feb 2019 56TOTAL 1 984FY2020 EXPIRYStandard Bank 3-5 year term facility 31 Mar 2019 536Nedbank 6 year term facility 9 May 2019 212Standard bank 3 year term facility 31 May 2019 40Nedbank 2 year term facility 7 Aug 2019 159Nedbank 2 year term facility 9 Sep 2019 4Nedbank 4 year term facility 9 Dec 2019 350Standard Bank 3 year term facility 30 Nov 2019 129Nedbank 4 year term facility 2 Dec 2019 150Investec 3 year amortising facility 28 Feb 2020 423TOTAL 2 003

19

Notes:


DEBT COMMENTARY

20

The weighted average all-in cost of funding is 9.3% (Aug 2017: 9.2%)

81.9% (Aug 2017: 82.3%) of borrowings fixed for an average period of 1.1 years (Aug 2017: 1.8 years).

The average debt facility expiry period is 1.1 years (Aug 2017: 1.6 years)

Interest cover ratio at 2.2 (Aug 2017: 2.4)

Intention is to term out the debt expiry profile once the bulk lease renewals are implemented.

NOTES:

PORTFOLIO REVIEWOtis Tshabalala

Embassy Building, Durban

Notes:


OPERATIONS HIGHLIGHTS INTERIM 2019

22

73.0%A distinct focus on sovereign tenants

52 422m²

Vacancies of

227 550m²

being sovereign tenants (by GLA)

Bulk lease renewal proposal to DPW (PMTE)

59 leases nationally

13.3%(SAPOA average 11.1%)

Total lease renewals in a challenging environment

9 613m²Total new leases concluded (GLA)

Rental income attributed to sovereign tenants

79.0%

NOTES:


BUILDINGS REPRESENTED BY PROVINCE REPRESENTATIVE TENANTS

23

A STRATEGY DESIGNED TO MAXIMISE ON SECURE AND STABLE INCOME

North West

Limpopo

MpumalangaGauteng

KwaZulu Natal

Free State

Eastern Cape

Northern Cape

Western Cape

No ofBuildings

GLA (m2)

Gauteng 36 404 748KwaZulu-Natal 17 278 313Free State 17 85 980Mpumalanga 11 30 252Limpopo 7 44 885Northern Cape 7 37 275Western Cape 5 41 889Eastern Cape 3 23 717North West 2 5 780Total 105 952 839

Notes:


GOVERNMENT PRECINCT | PRETORIA

24

NOTES:


PORTFOLIO BREAKDOWN

Office -Sovereign 1 Office - Other Industrial Retail Total

Number of properties 77 21 4 3 105

Gross lettable area (m2) 628,755 260,109 40,258 23,716 952,839

Vacancy (%) 7.9% 26.0% 19.0% 5.1% 13.3%

Value R8.2bn R2.8bn R0.2bn R0.3bn R11.5bnAverage rental (R/m2) 2 125.03 85.8 55.2 119.7 115.5 Weighted ave. escalation (%) 2 5.3% 7.1% 7.0% 7.8% 5.8%Weighted ave. lease expiry (by revenue) - by building type 1.1years 1.5years 1.0years 5.3years 1.3years

Weighted ave. lease expiry (by revenue) - tenant specific 2 1.1years 1.7years 1.0years 3.1years 1.3years

Cost to income ratio (net) 11.1% 20.2% 5.1% 18.3% 17.9%

Cost to income ratio (gross) 27.8% 43.3% 26.4% 39.8% 32.0%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 Rental as at interim, renewals not yet in effect

25

Notes:


TENANT PROFILE BY GLA

73.0%

16.3%

6.8%

3.9%

39.1%

15.0%12.2%

6.7%

Office - Sovereign

Office - Other

Retail

Industrial

TENANT PROFILE BY RENTAL

79.0%

12.1%

7.0%

1.9%

38.6%

21.0%

12.2%

7.2%

12.1%

7.0% 1.9%

National Government

ProvincialGovernment

Local Government

State-OwnedEnterprise

26

DETAILED TENANT BREAKDOWN

Excludes vacancies. Total occupied GLA = 826,508m2

NOTES:


UPDATE ON SOVEREIGN TENANTS

27

DPW oversees all National Government’s accommodation needs

DPW has focused on • decreasing the amount of space per government employee

• consolidating departments in under utilised buildings

The Presidency and Ministry of Finance are considering• consolidating departments

• decreasing the size of cabinet from 70 to 25

▪ number of employees should not be reduced

Notes:


DPW LEASING UPDATE

28

Stage 1 Initial Negotiation with

• Landlord• National Bid Adjudication Leasing Committee (NBALC)

▪ DPWo Valuerso Supply Chain Management

▪ Treasury 59 Leases totalling 227 550m2 have been finalised.Stage 2 NBALC & User Departments

• Pricing• Maintenance plan • BEE scorecard

38 leases totalling 166 000m2 have been finalised by 5 User Departments.Stage 3 NBALC & Bid Adjudication committee make recommendations to Deputy Director General for signoff

NOTES:


LEASING UPDATE

29

Major leases concluded

Mostly 3 year leases resulting from past treasury dispensations DPW and treasury now focusing on longer term leases, 9 years 11 months.

29

Building Tenant GLA Escalation Term

In 2 Fruit Building In 2 Food 11 177 m² - 06 months

Unisa House UNISA 9 068 m² 8.0% 24 months

101 De Korte MMI 6 610 m² - 12 months

5 Simba Road ESKOM 5 253 m² - 09 months

Auditor General Auditor General of SA 2 130 m² 7.0% 60 months

Domus National Heritage Council SA 1 127 m² 8.0% 12 months

Du Toitspan Dept. of CorrectionalServices 1 090 m² 6.0% 36 months

Total 36 455 m²

A total of 95 leases were renewed measuring 52,422m2 for the value of R145 million. The most notable renewals are :

Notes:


LEASING UPDATE cont….

30

A total of 42 new leases were concluded measuring 9 613m2 for value of R 54million. Our most notable new leases are :

Tenant Retention Tenant retention remains a significant focus for Delta

30

Building Tenant GLA Escalation Term

Liberty Towers Mr Price 3 833 m² 6.5% 109 months

5 Walnut Merchants SA 1 524 m² 7.0% 25 months

TOTAL 5 357 m²

NOTES:


GROWTH / REVERSION

31*All rentals quoted are gross rentals

Total leases concluded 1 March 2018 – 31 August 2018

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 # 49 52 422 24.77 108.75 111.80 2.80% 7.34%Renewals by Sector

Sector No ofLeases Total Area W.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%

Provincial government - - - - - - -

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

Office – other 22 21 358 20.52 103.59 110.80 6.96% 7.43%

Retail 19 11 194 50.52 122.46 132.00 7.80% 7.35%

Total 49 52 422 24.77 108.75 110.64 1.74% 7.34%

Notes:


GLA - BY BUILDINGGauteng (42.5%)Kwazulu-Natal (29.2%)Free State (9.0%)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 (45.3%)Kwazulu-Natal (23.6%)Limpopo (9.4%)Free State (6.3%)Western Cape (5.5%)Northern Cape (3.7%)Eastern Cape (3.0%)Mpumalanga (2.8%)North West (0.5%)

32

GEOGRAPHICAL AND GRADE SPLIT

OFFICE GRADE - BY GLAA (13.7%)

B (85.7%)

C (0.6%)

OFFICE GRADE – BY RENTAL

A (20.9%)

B (78.6%)

C (0.5%)

NOTES:


ACQUISITIONS & DISPOSALS

33

Delta did not embark on any new acquisitions during the current year, choosing to rather focus inwardly on acquisitions, filling up vacancies and renewal of leases

Investment strategy

Strategy is to continue to focus on:

• Significant assets (> R100million)

• Underpinned by (or have potential for) long term sovereign leases

• Located in nodes attractive to sovereign tenants

Potential diversification into one stop community centres to be occupied by SASSA, Dept Labour, Dept Home Affairs and SAPS.

Disposal strategy

Delta seeks to opportunistically recycle capital with a disposal strategy focusing on

• Properties with vacancies and leasing challenges

• Non-core properties

• Properties offering a good return

Notes:


VALUATIONS

34

Moderate growth of 2.3% as at 28 February 2018

The independent external valuers factored in the lease terms, potential reversions on lease renewals and the existing month to month leases at the time.

Revaluations will be done as and when new significant leases are signed.

NOTES:


DISPOSAL OF NON-CORE ASSETS

35

35

Property Location GLA Sales price (R) Expected transfer Date

Sale agreements concluded 31 035 324 550 000Block G Office - Sovereign Pretoria CBD 7 992 225 800 000 End December 201812 New Street Office - Sovereign Johannesburg CBD 2 368 15 750 000 End November 2018Top Trailers site 1 Industrial Wadeville, Johannesburg 15 741 50 000 000 End December 2018Broadcast House Office - Sovereign Mthatha, Eastern Cape 4 934 33 000 000 End November 20187 other non-core assets held for sale 59 096 644 800 000Protea Coin Cape Town Office Cape Town 5 700 4 100 000 TBAProtea Coin Pretoria Office Pretoria 7 640 18 000 000 TBA3 Simba Road Office Johannesburg 3 696 34 300 000 TBA5 Simba Road Office Johannesburg 5 375 77 700 000 TBAEnterprise Office Park Office Johannesburg 11 860 175 000 000 TBABeacon Hill Office - Sovereign King Williams Town 13 648 221 000 000 TBAIn 2 Fruit Building Industrial Johannesburg 11 177 114 700 000 TBATOTAL 90 131 969 350 000

Delta has approximately R969.4m on the disposal list of which R324.6m has been concluded.

Notes:


REDEVELOPMENT STRATEGY

36

Delta to deploy CAPEX into portfolio• Create value uplift to assets• Securing long term stable returns • Provide improved accommodation offering to tenants• Long term benefit to portfolio

Lease driven to identify assets where greatest value can be added, through value enhancing developments, and activation of under-utilised area or available bulk

Three tier approach to CAPEX• Defensive – mostly compliance • Tenant installation – new and renewed leases• Project specific – value uplift

Delta to partner with a BEE Energy Solutions company to achieve the following:• Green Certification of portfolio • Energy Solutions through Solar PV systems• Increase in Contractual Non-GLA income

NOTES:


CAPEX | EXISTING PORTFOLIO

Property 88 Field Commission House

Embassy Building Beacon Hill Sleepy

HollowPoyntons Fire

Project17 Harrison

Street

Approved budget 89 400 000 12 340 750 28 000 000 40 000 000 4 500 000 32 500 000* 4 500 000

Spent in FY2017 85 628 700 19 194 559 1 232 000 - -

Spent in FY2018 3 771 300 6 619 950 6 296 862 12 702 969 4 500 000 3 932 935 830 108

Spent in FY2019 - 4 192 293 1 343 214 - - 12 363 964 3 142 777

Remaining budget Completed 1 528 507 1 165 364 26 065 031 Completed 16 203 101 527 115

Description

Internal refurbishment of tenanted floors for DPW. Project complete.

Tenant installation to all floors for new tenant secured

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

Internal refurbishment of tenant spaceTurnkeycontractor appointed

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

* Fire compliance

Tenant installation and replacement of escalators

37

Notes:

CONCLUSIONSandile Nomvete

Harlequins, Pretoria

NOTES:


CONCLUSION

39

Conclude bulk lease renewals and increase WALE

Investment in both defensive and accretive capital – lease renewals and retention

Refinance debt facilities on longer term, reduce gearing and improve credit rating

Emphasis on filling vacant space and greater effort into disposal program

Expect that the domestic-focused listed property market will continue to face head-winds up-to 2019

Revised guidance of negative reversion in distribution of between 2% and 6%.

Board and management remain committed to Delta’s sovereign strategy

Notes:

www.deltafund.co.za

THANK YOUQuestions & Answers

Sleepy Hollow, Pietermaritzburg


NOTES:

www.deltafund.co.za

ANNEXURES

Sleepy Hollow, Pietermaritzburg


Notes:

Top 10 properties by value

Lease Expiry Profile

Sectorial Split

GLA and vacancy reconciliation

Leasing Outlook

01

04

02

05

03

ANNEXURES


NOTES:


Forum Building

Location Pretoria

Sector* Office -Sovereign

GLA 41 003 m2

Valuation R676 mil

Liberty Towers

Location Durban

Sector* Office - Other

GLA 40 093 m2

Valuation R423 mil

TOP 10 PROPERTIES

Poyntons

Location Pretoria


GLA 73 396 m2

Valuation R548 mil

Hallmark Building

Location Pretoria


GLA 26 255 m2

Valuation R410 mil

Delta Towers

Location Durban


GLA 41 679m2

Valuation R400 mil

43

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

Notes:


Embassy Building

Location Durban


GLA 32 788 m2

Valuation R340 mil

Hensa Towers

Location Durban


GLA 13 675m2

Valuation R303 mil

TOP 10 PROPERTIES | Cont….

Isivuno House

Location Pretoria


GLA 23 694 m2

Valuation R328 mil

Phomoko Towers

Location Pretoria


GLA 13 058m2

Valuation R269 mil

The Marine

Location Polokwane


GLA 24 655 m2

Valuation R259 mil

44

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

NOTES:


TOTAL PORTFOLIO - BY GLA

Vacant (13.3%)

Month to Month (28.5%)

28 Feb 19 (11.5%)

29 Feb 20 (13.4%)

28 Feb 21 (19.9%)

28 Feb 22 (7.4%)

28 Feb 23 (1.6%)

Beyond 28 Feb 2023 (4.4%)

TOTAL PORTFOLIO - BY RENTAL

Month to Month (31.0%)

28 Feb 19 (15.8%)

29 Feb 20 (15.3.%)

28 Feb 21 (22.5%)

28 Feb 22 (8.7%)

28 Feb 23 (1.8%)

Beyond 28 Feb 2023 (4.9%)

45

LEASE EXPIRY PROFILE AT 28 FEBRUARY 2018

Notes:


GLA - BY BUILDING

66.0%

27.3%

4.2% 2.5%

Office - Sovereign (66.0%)

Office - Other (27.3%)

Industrial (4.2%)

Retail (2.5%)

GLA - BY TENANT*

73.0%

16.3%

6.8% 3.9%



Retail (6.8%)

Industrial (3.9%)

46

SECTORAL SPLIT

RENTAL - BY BUILDING

76.9%

19.2%2.0%1.9%



Retail (2.0%)

Industrial (1.9%)

RENTAL - BY TENANT

79.0%

12.1%

7.0% 1.9%


Office - Other(12.1%)

Retail (7.0%)

Industrial (1.9%)

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

NOTES:


GLA AND VACANCY RECONCILIATION

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

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

Disposals - - -

Acquisitions - - -

Leases terminated - - 24 007

New letting of vacant space - - (9 680)

Adjustments - 411 (222)

As at August 2018 105 952 839 126 330 13.3%

47

Notes:


LEASING | OUTLOOK

48

* All rentals quoted are gross rentals

Anticipated budgeted sovereign renewals

Sector No of Leases Total Area W.A. ExpiryRate / m2 *

W.A. ProposedRate / m2 *

Escalation / (Reversion)

Leases on month-to-month or expiring by 28 February 2019

National government 51 205 889 106.36 97.97 (7.89%)

Provincial government 14 70 837 181.13 125.25 (30.85%)

Local government 2 34,977 145,05 113.02 (22.08%)

State-owned enterprise 13 13 134 105.62 99.33 (5.95%)

TOTAL 80 324,837 126.93 105.71 (16.72%)

www.deltafund.co.za

RESULTS PRESENTATION for the six months ended 31 August 2018€¦ · NOTES: RESULTS PRESENTATION...

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