PRESENTATION TO MADISON PROPERTY FUND MANAGERS. Pieter Prinsloo

Transcription

1 PRESENTATION TO MADISON PROPERTY FUND MANAGERS Pieter Prinsloo

2 COMPANY OVERVIEW Listed in excellent track record Prime shopping centres with scarcity value Market cap of R5.2 billion Investment portfolio of R6 billion Sustainable income growth & value

3 ASSETS Direct vs Indirect (by value) Indirect 21% Direct 79% Value Billion Direct R 4.7 Indirect R 1.3 R 6.0

4 ASSETS Property Investments (Direct) Offices 6% Retail 94% Value Billion Retail R 4.4 Offices R 0.3 R 4.7

5 ASSETS VPIF (Unlisted) 15% Property Investments (Indirect) SA Retail (Listed) 85% Hyprop owns 46% of SA Retail Value Billion SA Retail R 1.1 VPIF R 0.2 R 1.3

6 ASSETS VPIF 4% Combined in Value Offices 5% Shopping centres 73% SA Retail 18%

7 SHOPPING CENTRES Size m² Value Hyprop Net Income Ownership Canal Walk R m R 155 m 80% The Glen R 667 m R 52 m 75.15% Hyde Park R 782 m R 59 m 100% Rosebank Mall R 577 m R 48 m 100% Southcoast Mall R 117 m R 10 m 50% Value Canal Walk 51% The Glen 15% Southcoast 3% Rosebank Mall 13% Hyde Park 18%

8 Retail area m² Number of stores 420 Offices m² National tenants 73% Footcount (p a) 20 million

9 Retail area m² Number of stores 152 National tenants 83% Footcount (p a) 12 million

10 Retail area m² Number of stores 132 Offices m² National tenants 57% Footcount (p a) 5 million

11 Retail area m² Number of stores 116 National tenants 62% Footcount (p a) 11 million

12 Retail area m² Number of stores 93 National tenants 73% Footcount (p a) 3 million

13 DEVELOPMENT Located in Greenstone Park Modderfontein Retail area Phase m² Phase m² Number of stores 75 Cost of Phase 1 R512 million Completion Oct 2008

14 VUNANI PROPERTY INVESTMENT FUND ( VPIF ) Transformation initiative with Vunani Properties Hyprop owns 49.8% and Vunani Properties 50.2% Focus on enterprise and skills development Unlisted PLS Company Hyprop disposed of 5 office buildings value R174.5 million Total portfolio is 17 buildings - value R422 million

15 PERFORMANCE 250 Distribution History (cents per unit) 11% average growth p a over 11 years 13 years of uninterrupted growth

16 PERFORMANCE Distribution Growth (year on year) 20% 16% 17% 18% 18% 16% 7% 11% 13% 12% 9% 8% 8% 14% 12% 10% 8% 6% % 4% 2% 0%

17 PERFORMANCE Vacancy Reduction % vacant

18 PERFORMANCE 7,000 6,000 5,000 Total Assets R6 billion 4,000 3,000 2,000 1,

19 PERFORMANCE 7,000 6,000 5,000 4,000 3,000 Total Assets R6 billion Market Cap R5.2 billion 2,000 1,

20 PERFORMANCE 7,000 6,000 5,000 4,000 3,000 Total Assets R6 billion Market Cap R5.2 billion 2,000 1,000 - Debt R1.2 billion

21 UNIT PRICE HISTORY Hyprop Combined Unit Price times increase in unit price over 5 years Oct-01 Feb-02 Jun-02 Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06

22 UNIT PRICE HISTORY Hyprop vs PLS Index Hyprop PLS Index Consistently outperforming the index Jul-02 Nov-02 Mar-03 Jul-03 Nov-03 Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06

23 OVERALL PERFORMANCE Price per unit in Oct 2001 : R10.50 Total distribution over 5 years: R8.48 per unit = income return of 16.2% p a (12.6% compounded) Price per unit in Nov 2006: R36.50 Capital growth over 5 years: R26.00 per unit = capital return of 50% p a (28.3% compounded) Total growth over 5 years: R34.48 per unit = total return of 66% p a (33.8% compounded)

24 BORROWINGS Debt - R1.18 billion Gearing 20% Weighted Average Interest Rate 9.6% Borrowing Capacity R2 billion First property fund to use capital debt market funding

25 BORROWINGS Interest Rate Expiry Profile R million % 9.1 % 9.3 % % % of debt fixed for longer periods

26 UNITHOLDER PROFILE Unitholders in Excess of 5% of Units in Issue Standard Bank Group 5.20% Redefine 28.60% Old Mutual Funds 6.80% Coronation Funds 7.30% Stanlib Funds 11.80%

27 Board Composition Independent Non-Executive Directors PF Kirchmann (Chairman) MS Aitken JR McAlpine PJ Thurling (will become alternate director from 1 December) K Sibisi (appointed from 1 December) Non-Executive Directors WE Cesman EG Dube S Shaw-Taylor (Chairman Audit committee) M Wainer LE Weil Executive Directors Pieter Prinsloo (CEO) Laurence Cohen (CFO appointed from 1 December)

28 Company Structure Board of Directors Asset Manager Madison Property Fund Managers Property Managers Madison Property Fund Managers, Canal Walk Management Company (Pty) Ltd, JHI Real Estate Ltd (Rosebank Mall & JHI House) Employed by MPFM Asset Manager: Senior Management Nicole Greenstone Employed by Hyprop Investments Canal Walk: Wayne Abegglen & Gavin Wood The Glen: Roy Licht Hyde Park: Reinette Atkinson Rosebank Mall: Leila Daya Southcoast Mall: Tracey Kohler Offices: Lelani Grove

29 PROSPECTS UNLOCKING VALUE Developments in existing portfolio Canal Walk East Piazza, Nu Metro space & food court area New retail at entrances m² The Glen Extension to Edgars & application for additional bulk Rosebank Planet Fitness Mall Southcoast Further retail developments Total Value - ± R300 million

30 STRATEGY BEE equity transaction R600 million Corporate action SA Retail Maintain focus on prime A grade shopping centres Dispose of stand-alone offices Superior income growth

31 STRATEGY THANK YOU FOR THE OPPORTUNITY