HY2021 RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2020 - COMMODITY HOUSE PHASE II MOZAMBIQUE - Grit Real Estate Income Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
HY2021 RESULTS
FOR THE SIX MONTHS ENDED
31 DECEMBER 2020
COMMODITYHOUSE
COMMODITY HOUSEPHASE
PHASEII1
MOZAMBIQUE
MOZAMBIQUE
Proceedings
BRONWYN KNIGHT
Introduction Chief Executive Officer
BCom (Acc), CA(SA)
Key Highlights • 2019 EY Entrepreneur of the Year Award
Winner (Exceptional Category, Southern
Africa)
Portfolio Overview • 2015 Top CA(SA) under 35 Award Winner
Financial Review
Growth & Pipeline
LEON VAN DE MOORTELE
Sustainability Targets Chief Finance Officer
Bcompt (Hons), CA(SA)
Closing Remarks
Annexures
Ι 2
Introduction
The African Opportunity
Mauritius ranks
50% 3.4% 40%
Why Africa 2.6 Bn+ 54 urbanisation
13th Regional Growth
Africans will be
Population by 2060 countries Ease of doing business middle-upper class
by 2030 2021 by 2030
worldwide
RISING
STRONG POPULATION INCREASING GROWING
Key Trends GROWTH ECONOMIC GROWTH MIDDLE CLASS
INFRASTRUCTURAL
DEVELOPMENT
The world’s youngest populations
Investment in Africa Demand for City living
are in Africa
Key Insights
Source:
https://www.imf.org/en/Publications/REO/SSA/Issues/2020/06/29/sreo0629
https://www.doingbusiness.org/content/dam/doingBusiness/pdf/db2020/DB20-FS-SSA.pdf
https://www.investopedia.com/articles/investing/100614/interested-invesing-africa-heres-
how.asp#:~:text=The%20African%20continent%20is%20incredibly%20rich%20in%20natural%20resources.&text=As%20such%2C%20Africa%20has%20become,relatively%20cheap%20educated%20labor%20force
Deloitte – The Deloitte Consumer Review. Africa: A 21st century review. https://www2.deloitte.com/ng/en/pages/consumer-business/articles/consumer-review-africa.html
https://www.weforum.org/agenda/2019/08/youngest-populations-africa/
*Combined exposure to pre-funding developments and Grit’s equity ownership to Gateway Real Estate Africa not to exceed 20% of Gross asset value
Our High-quality
Tenants
Grit at a glance
GEOGRAPHIC SPLIT1
Geographic & sectoral diversification
FINANCIAL HIGHLIGHTS #
Mozambique
3.2%
Mauritius 3.7%
Zambia
3.8%
46.5% 5.8%
Morocco
6.5% PROPERTY LTV WACD
39.3%
Ghana 8.7%
Kenya
Botswana 9.9% PORTFOLIO HIGHLIGHTS #
Senegal
23.4%
Other
Investments US$849.2m 88.7%
assets2 Multinational
SECTORAL SPLIT1 tenants
3.7%
4.1%
93.0% 92.0%
27.7% income hard
15.5% EPRA Occupancy
currency
5.2 2.9%
22.9%
years weighted average
24.7% WALE lease escalation
(by Income) p.a. (by Income)
# as at 30 December 2020
Office Hospitality
Retail Corporate Accommodation
Light Industrial LLR
Other Investments
1 split by Asset Value, Grit economic interest
2 total income-producing assets
De-risked Investment Strategy
01 02 03 Margins 04 05 06
Political risk
of
Repatriation Ability to
Hard currency
of funds
& macro-
economics
Safety Land tenure
raise debt
Counterparty
CURRENCY TENANCY REPATRIATION COUNTRY OPERATIONAL OVEREXPOSURE POLITICAL
RISK RISK RISK RISK RISK RISK RISK
Prioritisation of Prioritisation of Robust relations Target stable Reputable Comprehensive
Defined
assets with USD long-term leases with the Central jurisdictions that experienced Political Risk
diversification
or USD/Euro with blue chip Bank, hedging & satisfy our key in-country Insurance (PRI)
strategy in place2
denominated multinational monitoring investment partners and cover in place
leases tenants policies criteria1 property
managers
Notes:
1 – i.e. stable governance/political maturity, strong USD/FDI inflows, USD-based economies, high growth rates, acceptable sovereign ratings and outlook
by ratings agencies, solid economic fundamentals, clear tax regime
2 – i.e. target not more than 25% of the GAV Group in any single investment; target not more than 25% of the GAV of the Group in any single country
Ι 7
VDE HOUSING ESTATE
MOZAMBIQUE
Highlights
HY2021 Highlights & Trends (31 December 2020)
Solid operational performance in a challenging environment
US$849.2m US$1.244 8.0% +8.1%
(+3.1%) (+6.3%)
Total Income EPRA NRV per EPRA Vacancy Net Operating Income
Producing Assets1 share 2 rate3 (incl. Associates)4
FY2020: US$823.5m FY2020: US$1.171 FY2020: 5.9% Like for like +0.9%
1. 2.2% like-for-like property valuation 2. EPRA NRV excludes deferred tax on 3. Driven by increases in retail vacancies 4. Revenue weakness (-6.2% like for
increase Property like) offset by strong cost control
91.4% 49.3% US$37.3m US$1.5 cps
Asset Recycling Resumption of
Collection Rates5 Group LTV6
Initiatives7 Dividend8
July-December 2020 FY2020: 50.2% HY2020: US$5.25 cps
5. As a % of Grit attributable 6. Near term LTV target of 45% 7. Partial sales of Anfa and Acacia 8. Potential for further one-off
contracted revenue quarterly dividend
Ι 9 **Post Balance sheet: Premium listing & Guernsey redom completion
Key Group Strategic Focus Areas
Focus on managing our assets and improving balance sheet strength through strict debt collection and cost control
1. Collections focus, cost control 2. Addressing rising Vacancy 3. Strengthening Balance
and protecting existing portfolio rate (8.0% at 31 Dec ’20)1 sheet and Group liquidity2
4. Resumption of Dividends in 5. Leveraging Premium Listing 6. Selective acquisitions and
FY20213 and Guernsey redom4 investments tied to funding
1. 8.0% at 31 December 2020 (from 5.9% at 30 June 2020), largely driven by movements in retail which has been impacted by ongoing COVID-19 lockdowns
initiatives5
2. Targeting near term LTV of below 45% by way of asset recycling, debt repayments, equity preference notes, accretive acquisitions and valuation recovery
3. The Board expects to resume dividends in the 30 June 2021 financial year, supported by recent strong collection trends
4. Positions the company favourably for potential FTSE index inclusion and sector consolidation opportunities
5. Funding initiatives include Capital Recycling through disposals of assets, issuance of hybrid equity instruments to DFI’s and Government Support Programmes
Ι 10COVID-19 Impact on Rental Collections
Rental collection impacts improving through to December 2020 (>90%)
Corp. Light Total July to Total Mar to
Office Retail Hospitality
Accomm Industrial Dec 2020 Jun 2020
Contracted Rent 100% 100% 100% 100% 100% 100% 100%
Rent deferrals 0% (0.5%) 0% (13.8%) 0% (2.9%) (14.4%)
Rent Concessions 0% (14.4%) 0% 0% 0% (4.4%) (8.7%)
Expected collection rate 100% 85.1% 100% 86.2% 100% 92.7% 76.9%
Collections (% of contracted rent) 101.2% 84.1% 98.7% 80.2% 101.5% 91.4% 86.0%
Movement in debtors balances (1.2%) 1% 1.3% 6% (1.5%) 1.3% (9.1%)
(incl. prior period rent deferral recoveries)
• c.4.4% short term rental concessions granted, mostly in retail. Although collection rates in retail have improved, these are now off
significantly lower contracted amounts for all leases renewed in the period
• c.2.9% short term payment deferrals agreed (mostly hospitality). Mauritius COVID landlord act legislating a 6-month rent deferral
became chargeable once again from September 2020 and collectible over the-18 month period to Dec 2021
• Debtors balance movements include arrears collections and rental prepayments
Ι 11Valuation movements for 6 months to 31 December 2020
COVID-19 valuation impacts have moderated
• Uptick experienced in valuations
Like for Like across office, hospitality, light
Total Like for
Fair value FX & other BALANCE % move for 6 industrial, corporate
like move Additions
movement impacts 31 DEC 2020 months to accommodation and LLR lease
(incl FX)
31 Dec 20 escalation and stabilization in
discount rates
USD'000 USD'000 USD'000 USD'000 USD'000 %
Office 3,769 275 4,044 30 203,449 2% • Downward valuation trend evident
in retail sector on rising vacancy and
Retail (14,847) 6,083 (8,810) 330 210,091 -3.7% downward adjustment to lease rates
Hospitality 2,999 14,995 17,994 1,225 181,509 11.1%
• Hospitality sector valuation moves
Light Industrial 1,266 107 1,373 1,431 33,039 4.5% predominantly as a result in
Corp movements in the EUR exchange
118 655 773 13 138,980 0.6% rate and fair value movement on
Accommodation
Club Med removal of hardship
LLR 232 588 820 3,302 27,345 3.5% clause
GREA 135 - 135 2335 7,479 2.7% *Total of fair value gains of properties including
associates and joint ventures, excluding fair value
adjustment from contractual receipts from vendors
TOTAL* (6,329) 22,658 16,329 8,666 801,893 2.2%
Ι 12Continuing COVID-19 Impact on Grit’s Real Estate Sectors
Resilient portfolio performing well, with >90% of contracted revenue value collected in July-December 2020
Focus on Corporate Accommodation,
Corp. Accommodation, Industrial
Industrial, Officeand
and Office sectors
Other investments
supporting • Collectively 52.4%1 of Grit’s property assets (30 Dec 2020)
exposed tenants • Continue to remain largely unaffected to date
in hospitality
and at AnfaPlace Hospitality sector
Hospitality sector (Mauritius,
(Mauritius,Senegal)
Senegal)
• 25%1 of Grit’s total NAV (30 December 2020)
• Club Med rental deferrals have been recovered
• Mauritian operators have resumed part payments (expected to
improve upon MIC disbursements and opening of Mauritian
borders)
Retailsector
Retail sector (Morocco,
(Morocco, Zambia,
Zambia,Mozambique,
Mozambique,Kenya)
Kenya)
• 23%1 of Grit’s total NAV (30 December 2020)
• Anfa Place experiencing highest increase in vacancies following
H&M exit. Travel restrictions impacting fit-out, due diligence and
new lease signature processes
• Rising vacancy trend across the rest of portfolio, Mall de Tete,
Buffalo Mall and Zimpeto Square up from prior period,
however on Group basis are not material cost of vacancy
Notes:
1. By Grit Economic Interest
Ι 13EPRA vacancy contribution by property
c.2% EPRA vacancy increase in six months to 31 December 2020 primarily driven by Retail
• Anfa Place Shopping Centre
Exit of H&M and delays in tenant take-up primarily
0.4% 0.2% driven by COVID-19 lockdowns. c.3,000m²
0.5% committed for take-up by 2021 Q3, reducing the
0.2% GLA vacancy to the expected c.20%.
1.3%
• Buffalo Mall
Early exit of Tusky’s Supermarket (3,861m²) due to
business liquidation, resulting in 68% mall vacancy.
Positive negotiations in progress with 2
replacement major retailers.
• Commodity Phase 1
Strategic vacancy of Mitsui and Schlumberger
(649m²) to accommodate Total additional space.
8.0% Lease commenced effective 1 January 2021.
• LLR
5.9% Positive Leasing activity over the period
• Mukuba Mall
Increased Vacancies from fashion retailers and
Retail – 83% Retail – 84% smaller restaurants. Expected to be filled after
Office – 10% Office – 13% Covid restrictions have been lifted
Other – 7% Other – 3%
EPRA V ACAN CY ANFAPLACE BUF F A L O MA L L C O MMO DITY MUKUBA MA L L LLR EPRA V ACAN CY
A S A T JUN E SHO P P IN G HO USE P H1 AS AT
2020 C EN TER DEC EMBER
2020
Ι 14Retail sector update
Exit of predominantly fashion retailers in favour of stronger international food and services operators
MOROCCO – ANFAPLACE MALL (ENCLOSED) ZAMBIA – KAFUBU, MUKUBA, COSMO MALL
• AnfaPlace Mall monthly cost • Mukuba, Kafubu and Cosmo
of vacancy c.US$283k monthly cost of vacancy
• Attributed to exit of H&M and c.US$22k; c.US$3k and
Swatch (1945m2) c.US$28k respectively
• Increased take up of storage • In talks with major
units, 4-in-1 street retail lease international Turkish fashion
concluded during the period retailer to take up space in
Mukuba Mall
MOZAMBIQUE – ZIMPETO SQUARE, MALL DE TETE KENYA – BUFFALO MALL
• Zimpeto Square and Mall de • Buffalo Mall monthly cost of
Tete monthly cost of vacancy vacancy c.US$3.5k
c.US$22k & c.US$48k • Attributed to exit of local
respectively supermarket anchor (Tuskys)
• In talks with SA Healthcare • Advanced discussions with
operator to take up vacant Carrefour to take up
space at both malls supermarket anchor space
Note: Monthly cost of vacancy calculated on a year-to-date basis
Ι 15COVID-19 impact: Hospitality sector
Rent payments materially resuming in September 2020, looking to 2021 for consistent collection rates
MAURITIUS HOSPITALITY PORTFOLIO (BEACHCOMBER & LUX)
• All hotels operational – Tamassa and Canonnier open for domestic use, Mauricia and Victoria
being used as designated quarantine facilities.
• NMH Group (Beachcomber)1 resumed partial rental payments from 1 August 2020, while Lux
resumed rental payments from September 2020. Lux was fully paid up2 as at 31 Dec 2020.
SENEGAL HOSPITALITY ASSET (CLUB MED)
• Rental deferral with Club Med fully paid up as at 31 December 2020.
• Revised development programme agreed by parties with EUR2M deployed at the end of
2020, and EUR5M spend allocated for 2021, facilitating targeted re-opening in Q4 2021.
• Hardship clause removed, now minimum 50% rental payment agreed until resort reopening
• Phase II development programme starting Q1 2021, targeted for completion in Q4 2022.
Notes
1 NMH accounts for 11.8% of the Group’s attributable contracted rental revenue
2 Save for 3 month COVID-19 rebate due by 31 December 2021. This outstanding rental payment amount will be predominately collected through to December‘21
Ι 16Investment & Corporate actions update
Grit has successfully delivered a series of quality acquisitions, capex additions and strategic corporate actions in the
period, positioning the Group well for future growth
Conversion to £ quote AnfaPlace Mall, Bolloré, Acacia Estate, Premium Listing on
JSE Delisting Redom to Guernsey
on the LSE Morocco Mozambique Mozambique the LSE
July 2020 August 2020 September 2020 September 2020 October 2020 January 2021 February 2021
Delisted from the JSE on LSE stock quote converted Disposed of a 39.5% Commenced Disposal of 17.35% Officially migrated to the Focusing on improved
29 July 2020 to Sterling on 3 August interest in the Mall, redevelopment of Bolloré interest in Acacia Estate Premium segment of the liquidity as a result of
2020 therefore reducing retail warehouse in Pemba, on down to a combined direct Main market of the consolidated listing
Now primary listed on LSE, sector exposure to c.25% the strength of a new 5- and indirect interest of London Stock Exchange. structure, eligibility for
secondary listed on SEM year lease for a budgeted 62.65% at an implied index inclusion and
contract value property valuation diversified shareholder
ZEP-RE (Kenya) & BDC of US$7.62m of c.US$67.5m base.
introduced as strategic
shareholders
Ι 17COMMODITY HOUSE
MOZAMBIQUE
Portfolio overviewPortfolio Characteristics (HY2021)1
By Grit Economic By Grit proportionate
interest consolidation
3.2% 3.0%
KEY METRICS 3.8%
3.7%
3.5%
3.4%
EPRA Occupancy 6.0%
6.5%
92.0% 39.3% 39.1%
GEOGRAPHIC 8.7% 10.6%
Multinational Tenants2
9.9% 11.7%
88.7%
2. Forbes 2000, Other Global & pan African tenant 23.4% 21.4%
(by revenue)
Contracted Escalation3
2.9% 1.4% 1.3%
3.7% 3.4%
3. Weighted average annual escalation (by income)
4.1% 3.7%
Hard Currency4 27.7% 25.4%
15.5% 17.3%
93.0%
4. Hard or pegged currency rental income SECTOR
WALE5
22.9% 22.6%
5.2 years 24.7% 26.2%
5. Weighted Average Lease Expiry (by Income)Income profile expiry
1
Corporate Accommodation LLR Office Light Industrial Retail Hospitality
100.0%
86.9%
72.3%
28.7%
26.6%
26.0%
24.2%
2
23.1%
23.2%
21.0%
20.6%
20.3%
19.9%
16.7%
15.8%
13.7%
13.1%
3
8.9%
7.8%
7.1%
6.8%
5.9%
4.5%
3.2%
2.0%
0.9%
0.8%
0.2%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6 M O N THS 1 2 M O N THS 2 4 M O N THS 3 6 M O N THS 4 8 M O N THS 6 0 M O N THS >6 0 M O N THS
Notes:
1 Primarily driven by industrial sector (70%)
2 6 months income expiry – 19.9% Retail:
1. Cosmopolitan Mall – celebrates its 5th anniversary resulting in all original leases terminating simultaneously on 28 February 2021. Numerous agreements have already been
pre-empted, however remaining leases totaling 27% remain under negotiation for renewal.
2. Anfa – International Retail Morocco expires in June 2021, renewals are currently being concluded for up to 9 year lease terms.
3 5.9% of Retail expiring in the next 12 months mainly in the fashion industry
Ι 20Top 15 Tenants (as at 31 December 2020)
Majority of portfolio income generated from strength of multinational tenancies
Income Lease Lease
Rank Tenant Industry Tenant Grading
(% of Group Total) Covenant Currency
1 BEACHCOMBER Hospitality 11.8% OTHER GLOBAL Triple Net EUR
2 TOTAL Mining and Natural Resources 9.9% FORBES Gross USD
3 VALE Mining and Natural Resources 9.8% FORBES Gross USD
4 VODACOM Communications 6.7% FORBES Triple Net USD
5 TAMASSA RESORT BEL OMBRE Hospitality 5.9% OTHER GLOBAL Triple Net EUR
6 US EMBASSY Consular 5.1% OTHER GLOBAL Gross USD
7 SHOPRITE Retail 3.6% FORBES Gross USD
8 TULLOW OIL Mining and Natural Resources 2.8% OTHER GLOBAL Triple Net USD
9 IMPERIAL HEALTH SCIENCES Logistics 2.7% PAN AFRICAN Triple Net USD
10 EXXON Mining and Natural Resources 2.6% FORBES Gross USD
11 CLUB MED CAP SKIRRING Hospitality 2.6% OTHER GLOBAL Triple Net EUR
12 INTERNATIONAL RETAIL MOROCCO Retail 2.2% OTHER GLOBAL Gross MAD
13 GHANA COMMUNITY NETWORK SERVICES Communications 1.8% OTHER GLOBAL Gross USD
14 GAME Retail 1.6% FORBES Gross USD
15 ABSA BANK Finance and Banking 1.5% Other Global Gross MUR
Total 70.7%
1. Ranked by income
Ι 21Vale potential exit from Mozambique Quality asset subject to long lease mitigates near term risks • Vale announced in late January the consolidation of its ownership in Moatize mine and the Nacala Corridor infrastructure project, and although re-iterated its intention to reshape mine operations and to ramp up production to 18mln tonnes, it also announced its intention to divest of its coal assets in Mozambique ➢ Vale have 3.5 years remaining on VDE Housing Estate lease. ➢ Vale remain committed to completing the project and still have US$2.5bln in capex to spend over the coming 24 months ➢ VDE housing estate is one of the only fully self-sufficient compounds with desalination plants, full back up generators and well-developed local infrastructure Ι 22
Letting activities
Significant new lettings and renewals and commercial terms agreed in the 6 month period (100% basis)
2
PROPERTY TYPE TENANT SECTOR AREA (M ) LEASE TERM
Commercial terms
Vodacom Building Vodacom Office 10,659 5.0
agreed*
Mukuba Mall Renewal Game Retail 5,060 4.9
Mukuba Mall Renewal Shoprite Retail 4,262 4.9
VDE Housing Estate New Deal Tsebo Corporate Accomodation 3,600 3.0
Anfaplace Shopping Center Renewal Label Vie Retail 3,573 12.0
Cosmopolitan Mall Replacement Cress Motors Retail 2,539 4.9
Bollore Renewal Bollore Office 2,511 5.0
Mukuba Mall Renewal Pick and Pay Retail 2,240 4.9
Mukuba Mall Replacement Home Essentials Retail 1,510 2.0
Mukuba Mall Replacement Carnival Furnishers Retail 899 5.0
Total 36,853 5.2
* Vodacom Building commercial terms agreed, subject to final contracting
Ι 24Financial Review
Financial highlights (as at 31 December 2020)
Robust cost control offset revenue weakness to generate strong profit from operations and net income growth. Well
positioned to rebound once COVID-19 impacts dissipate
31 Dec 2020 31 Dec 2019 12M Movement
Dividend per share (US$ cps) 1.50 5.25 (71.4%)
Gross rental income (incl. associates) (US$ m) 31.6 31.7 (0.1%)
Profit from operations (US$ m) 12.9 10.7 19.7%
Adjusted EPRA earnings per share (US$ cps) 3.16 5.67 (44.2%)
Distributable earnings 3.88 5.48 (29.2%)
EPRA cost ratio (incl. associates) (US$ m) 14.3% 18.6% (4.3ppt)
31 Dec 2020 30 June 2020 6M Movement
EPRA NAV per share (US$ cps) 124.4 117.1 6.3%
Total Income Producing Assets (US$ m) 849.2 823.5 3.1%
Weighted average lease expiry (years) 5.2 5.0 0.2
EPRA portfolio occupancy rate 92.0% 94.1% (2.1ppt)
Group LTV 49.3% 50.2% (0.9ppt)
Property LTV 46.5% 46.5% -
Ι 26EPRA Net Reinstatement Value evolution – HY21
Portfolio Performance
US$ cents
# Other non-cash items include: ECL provisions, movement in foreign currency translation reserve, and deferred tax
Ι 27Like for like Revenue and NOI y-o-y movement **
Strong Operating cost control offset revenue weakness; specifically in retail sector
HY2021 HY2021 19.3%
21.0%
➢ Revenue -6.2% on like for like basis ➢ NOI +0.9% on like for like basis
➢ Revenue -0.1% inclusive of acquisitions ➢ NOI +8.1% inclusive of acquisitions
1.8% 2.4% 2.7%
0.5%
-0.8% -1.0% -0.1%
-5.8% -6.7%
-19.1%
Retail Office Corp. Accomm Light Industrial* Hospitality Other
USD'000 movement Retail Office Corp. Accomm Light Industrial* Hospitality Other L-F-L mvt Acquisitions Total
Revenue (1,912.7) (72.3) (62.5) (59.7) 124.5 20.4 (1,962.1) 1,933.2 (28.9)
Net operating income 87.6 41.0 (5.8) (67.4) 136.5 21.8 213.6 1,798.2 2,011.8
* light industrial decrease as a result of Bollore being redeveloped
** Including Associates
Ι 28Key financial metrics
Income producing assets ($m), Group LTV (%), WACD (%) Revenue and Net income ($m) Interest cover (x)
Revenue
Total Comprehensive Income
Group LTV WACD
24.1 23.6 2.3x
19.6 19.4 19.7
1,000.0 80.0% 15.3
10.3 2.1x 2.1x 2.1x
900.0 860.1 6.4
849.2 70.0%
823.5
796.4
800.0
60.0% HY18 HY19 HY20 HY21 HY18 HY19 HY20 HY21
700.0 642.3 50.2% 49.3%
50.0%
600.0 51.4% Admin cost to asset value (%) Net EUR exposure (€m)
50.2%
500.0 43.1% 40.0%
1
400.0 2.1% 62.3
30.0% 1
1.5% 1.6%
300.0 6.3% 1.3% 57.7
6.1% 20.0% 54.9 55.7
200.0 5.9%
5.7% 5.8%
10.0%
100.0
HY18 HY19 HY20 HY21 HY18 HY19 HY20 HY21
- 0.0%
HY18 HY19 HY20 FY20 HY21
1. Impacted by one off professional costs and increased staff
compliment ahead of acquisitions and premium listing
Ι 29Loan to value (“LTV”)
Deleveraging and strengthening of the balance sheet is a strategic imperative in the medium term
COVID-19 pandemic
GRIT COVID-19 initiatives
51.4% 50.2% Initiatives under consideration to achieve
49.2% 49.3%
43.9% 45.0% LTV target in the near and medium term:
43.4% 43.1%
35% - 40.0%
Initiatives Potential LTV
impact
Asset Recycling/ Debt 1.0% - 2.3%
Repayment
Equity Pref notes 1.5% - 3.0%
Accretive asset acquisitions 0.5% - 2%
Valuation recovery TBC
HY18 FY18 HY19 FY19 HY20 FY20 HY21 Near term Medium
focus term target
Ι 30Debt Financing Update – December 2020
% DEBT EXPIRY PROFILE (excl. associates) MULTI BANK STRATEGY
59.4% 1.8%
4.0% 0.4% Standard Bank
38.6% 4.1%
Bank of China
1.1% 1.0%
State Bank of Mauritius
Expiring within 1Y Expiring within 2Y Expiring within 3Y Expiring 3Y > 12.0%
41.5% Investec
DEBT EXPIRY PROFILE (EXCL. ASSOCIATES) (US$m) ABSA
15.6%
141.1
76.4
52.6
Maturity settlement value ABC Banking Corporation
Capital repayments
Maubank
30.0
27.3
20.7%
Under COVID Nedbank
20.0
consideration
17.1
14.9
8.1
7.7
DEBT MATURITY
3.9
1.8
1.5
1.4
1.4
1.4
0.8
0.7
0.7
0.3
0.4
0.3
0.0
0.0
2.0 years
Mar 22
Mar 21
Feb 22
Apr 22
Post Oct
Sep 22
Sep 21
Oct 21
Oct 22
Oct 23
Jan 21
Nov 21
Nov 22
May 21
May 22
May 23
Aug 22
Jun 21
Jun 22
Jun 23
Dec 22
2023
(June 20: 2.4 years)
Debt expiry of Associates facilities within the next 24 months (not included above)
• Beachcomber hotels facility c.$58.3m expires in Dec 21 • Tullow Cads (ABSA) facility of $15m expires in Nov 23
• LLR facility of c.$19.8m expires in Mar 23 • Buffalo Mall facility of c.$4.5m expires in Sept 2031
Ι 31Drive In Trading (DiT) Refinance Update
A new loan facility1 with the Public Investment Corporation (PIC) has been approved and proposed in principle, subject to
documentation
PIC PROPOSED LOAN TERMS
• Duration: 5 years (2 years with option to extend for another 3 years)
• Interest rate: 9% per annum (from the current 5.85%)
• Requirement for Grit to fully guarantee / remedy any shortfall in interest payment obligations
• Guarantee agreement between Grit and the PIC to remain in place for the duration of the loan
Notes
1 By virtue of the Group’s historic listing on NEXT STEPS
the Johannesburg Stock Exchange, the
Company’s largest shareholder, the Public
Investment Corporation (“PIC”), facilitated • Should the transaction be concluded, it would be subject to an independent fairness opinion and
the Group’s black economic empowerment
and transformation partner, Drive in consideration under Grit’s related party policy as a result of PIC’s shareholding in Grit of 25.5%
Trading (“DIT”), in the acquisition of
23.25m Grit shares in June 2017 by
providing a guarantee against their external • The DIT guarantee contingent liability is currently accounted for under “Other Financial liabilities” at
debt facility. Separately, Grit indemnified
the PIC for up to 50% of any potential
losses suffered by PIC as a result of the
31 December 2020 at a fair value of c.US$4.1m (December 2019: US$1.1m)
guarantee, capped at US$17.5m.
Following the expiry of the loan facility, PIC has assumed the position of lender to DIT, and continues to reserve its rights under the Grit indemnity.
Ι 32Distributable Income
31 Dec 2020 31 Dec 2019
US$’000 US$’000
Basic Earnings attributable to the owners of the parent 9,706 16,874
12.07 12.19 12.20
Company specific distribution adjustments
- VAT Credits utilised on rentals 1,132 304
- Interest related to Anfa Place Mall areas under construction - 53
US$ cents per share
- Listing and set-up costs under Administrative expenses 121 -
9.58
- Depreciation and amortisation 306 259
- Share based payments 64 90
- Antecedent dividend - 418 4.33
- Retirement fund & PRGF 55 -
- LLR Initial day one gain - (2,066)
5.95 6.07
- Amortisation of capital funded debt structure fees 425 -
5.25 5.25
- Operating costs related to Anfa Place Mall refurbishment costs - 271 3.88
Total company specific distribution adjustments 2,103 (671)
TOTAL DISTRIBUTABLE EARNINGS (BEFORE PROFITS WITHELD) 11,809 16,203 2.38
DISTRIBUTABLE INCOME PER SHARE (DILUTED) (cents per share) 3.88 5.48
- Profits released/(withheld) (7,241) (678) 1.50
TOTAL DISTRIBUTABLE EARNINGS TO GRIT SHAREHOLDERS 4,568 15,525
DIVIDEND PER SHARE (cents) 1.50 5.25 FY17 FY18 FY19 FY 20 HY21
Distribution shares (‘000) 304,505 295,722 Interim dividend Final dividend Earnings held back
Interim distribution proposed (US$ cps) 1.50 5.25
Ι 33Statement of Financial Position
INCOME PRODUCING ASSETS
As at 31 Dec 2020 30 June 2020 Movement 31 Dec 2020 30 June 2020 Movement
(US$’m) (US$’m) % (US$’m) (US$’m) %
Assets
Non-current assets
Investment properties 584.8 572.1 2.2% 584.8 572.1 2.2%
Deposits paid on investment properties 5.1 4.5 12.2% 5.1 4.5 12.2%
Investments in associates and joint ventures 168.3 161.3 4.3% 210.5 198.9 5.9%
Other loans receivable 29.5 39.6 (25.4%) 29.3 29.3 -
Related Party loans receivable 2.6 0.0 87766.7% 13.0 13.6 (4.4%)
Deferred tax 28.0 24.5 14.4% - - -
Other non-current assets 5.6 6.8 (18.2%) 0.5 0.5 (0.7%)
Total non-current assets 823.9 808.7 1.9% 843.2 818.8 3.0%
Total current assets 62.1 37.0 68.0% 6.1 4.7 29.7%
Total assets 886.0 845.7 4.8% 849.2 823.5 3.1%
Equity and liabilities
Total equity attributable to ordinary shareholders
Ordinary share capital 463.8 454.1 2.1%
Treasury shares reserve (18.4) (18.4) -
Preference share capital 25.5 - -
Reserves (115.1) (137.9) (16.5%)
Equity attributable to owners of the Company 355.9 297.9 19.5%
Non-Controlling interests (12.0) (0.6) 1859.0%
Total equity 343.8 297.3 15.7%
Liabilities
Non-current liabilities
Redeemable preference shares 12.8 12.8 -
Interest-bearing borrowings 400.5 337.6 18.6%
Deferred tax 65.6 57.4 14.2%
Other non-current liabilities 17.0 14.4 17.9%
Total non-current liabilities 496.0 422.3 17.4%
Interest-bearing borrowings 7.9 55.4 (85.6%)
Other current liabilities 38.2 70.7 (46.0%)
Total current liabilities 46.2 126.1 (63.4%)
Total liabilities 542.2 548.4 (1.1%)
Total equity and liabilities 886.0 845.7 4.8%
Ι 34Statement of Comprehensive Income
For the 6 months ended
31 Dec 2020 31 Dec 2019 Movement
(US$’m) (US$’m) %
Gross rental income 23.9 24.3 (1.6%)
Straight-line rental income accrual (0.3) (0.2) 56.7%
Revenue 23.6 24.1 (2.1%)
Property operating expenses (4.1) (6.3) (34.2%)
Net property income 19.5 17.8 9.3%
Other income 0.1 3.0 (96.9%)
Administrative expenses (including corporate structuring costs) (6.7) (10.0) (33.2%)
Profit from operations 12.9 10.7 19.7%
Total fair value adjustment on investment properties (4.2) 3.0 (240.5%)
Total other fair value adjustment on other investments 0.8 0.2 346.3%
Impairment / (charge) of loan / financial asset 1.6 (1.1) (239.3%)
Share-based payment expense (0.1) (0.1) (28.9%)
Share of profits from associates and joint ventures 1.6 12.6 (87.6%)
Foreign currency gains 1.3 0.0 16537.5%
Profit before interest and taxation 13.8 25.3 (45.5%)
Interest income 1.3 2.4 (45.4%)
Finance costs (12.5) (12.6) (1.1%)
Profit for the period before taxation 2.6 15.1 (82.6%)
Taxation (4.9) (3.4) 45.2%
Gain / (loss) on translation of functional currency 8.6 (1.4) (715.1%)
Total comprehensive income 6.4 10.3 (38.1%)
Loss / (Profit) attributable to:
Owners of the parent 1.7 13.1 (86.8%)
Non-controlling interests (4.0) (1.4) 180.5%
(2.3) 11.7 (119.5%)
Total comprehensive income/ (loss) attributable to: - - -
Owners of the parent 8.8 11.7 (25.4%)
Non-controlling interests (2.4) (1.4) 66.5%
6.4 10.3 (38.1%)
Ι 355TH AVENUE CORPORATE OFFICES
GHANA
Growth, Investment &
PipelinePipeline & investment considerations in light of COVID-19
3. Accelerated disposals of non-core
assets and other recycling initiatives
2. Defending and strengthening 4. Reassessed all target acquisitions
Grit’s Balance Sheet key priority in light of COVID-19 impacts
1. Grit extended target execution 5. Progressing accretive investments once
dates on all announced pipeline deals funding solutions are secured
Ι 37Pipeline Transactions no longer being progressed
COVID-19 impacts have resulted in the non-closure of a number of pipeline opportunities
Announced October 2019
• Adjacent acquisitions were announced
PWC Location: Accra, Ghana prior to the onset of the COVID-19
BUILDING pandemic.
Sector: Office
• Upon further deliberation, the Group
Announced October 2019
has concluded that these transactions
HUAWEI Location: Accra, Ghana no longer make commercial sense in
BUILDING light of the Group’s revised Corporate
Sector: Office
Strategy.
Announced February 2020
• Light industrial, corporate
MASSIRA Location: Casablanca, Morocco accommodation and healthcare assets
CORNER ** will be identified and prioritized for
Sector:
Mixed-Use (Hospitality acquisition going forward.
& Retail)
** Grit will still be pursuing a Moroccan REIT strategy and will be make further announcements in due course
Ι 38Pipeline Developments being progressed
Funding either secured through asset recycling initiatives or through DFI funding
Target
Completion Q3 2022 Size (GLA): 6,087m2 Property Yield: 10.5%
ST. HELENE Date:
CLINIC Location:
Curepipe, Transaction
US$7.3m Avg Annual Escalation:
European Harmonised
Mauritius Value:* CPI, min. of 2.0%
(38.35%)
Anchor Tenant lease PDL (Artemis), 15 years;
Sector: Healthcare WALE: 15 years
terms Triple Net, EUR-linked
Target Closing
Q4 2022 Size (GLA): 10,080m2 Property Yield: 10.5%
Date:
COROMANDEL
Coromandel, Transaction European Harmonised
HOSPITAL Location:
Mauritius Value:*
US$12.2m Avg Annual Escalation:
CPI, min. of 2.0%
(38.35%)
Anchor Tenant lease PDL (Artemis), 15 years;
Sector: Healthcare WALE: 15 years
terms Triple Net, EUR-linked
Target Closing Ph 1 - 29,243m2 Ph 1 – 10.12%
Q2 2021 Size (GLA): Property Yield:
Date: Ph 2 – 14,741m2 Ph 2 – 9.91%
ORBIT Mlolongo, Transaction Ph 1 - $30.8m Ph 1 - 2.0%
Location: Avg Annual Escalation:
AFRICA Nairobi, Kenya Value:* Ph 2 - $14.6m Ph 2 – 2.0%
(PHASE 1 & 2) Ph 1 - 25 years
Anchor Tenant lease
Orbit Products Africa;
Sector: Industrial WALE: Ph 2 – c.23 25 years; Triple Net
terms
years Lease; USD lease
*Indicative estimates only of Grit share of acquisition/development value using currently available indicative valuations and should not be relied upon as a forecast
Ι 39Announced Redevelopments underway
Significant redevelopment activity to complement existing asset acquisitions
Target Closing
Q4 2021 Size (GLA): 7,324m2 Property Yield: 8.00%
Date:
Bolloré
Pemba, Transaction
Warehouse Location:
Mozambique Value:*
US$7.6m Avg Annual Escalation: US CPI + 1.5%
(Redevelopment) Anchor Tenant lease Bollore Transport and
Sector: Light Industrial WALE: 5.0 years
terms Logistics, 5 years, USD
Target Closing
Q4 2021 Size (GLA): 326 keys Property Yield: 7.88%
Date:
Club Med Cap
Transaction
Skirring (Phase 1 Location: Senegal
Value:*
US$5m Avg Annual Escalation: 1.5%
Redevelopment)
Anchor Tenant lease Club Med; 12 year;
Sector: Hospitality WALE: 12 years
terms Triple Net; Euro
* Indicative estimates only using currently available indicative valuations and should not be relied upon as a forecast
Ι 40Gateway Real Estate Africa Limited
Grit’s development associate provides a “one solution” approach to client’s real estate
needs
GREA SHAREHOLDER STRUCTURE
48.6%
• Founded and co-sponsored by Grit, GREA is a private company funded with
US$175mln equity commitments and is staffed by an experienced team of 28.5%
20.0%
professionals with an established track record in African property development and 2.9%
project delivery. GREA is designated as one of Grit’s preferred development partners
PIC Gateway Grit Prudential
• Through it’s 19.98% equity interest in GREA, Grit has minority exposure to the Partners
developers assets and returns
Updated investment and operating relationship
• Grit’s investment charter allows Pre-funding of outsourced and turnkey style
developments under 2 models with GREA
• Ethiopia
▪ Upfront funding and participation in development projects • Kenya
• Ghana
• Mauritius
▪ “Buy-in option” to participate in developments under construction • Morocco
• Mozambique
• Uganda
• Upon completion Grit retains right of offer on any assets; specifically ones within its • Senegal
• Rwanda
investment mandate can be considered for acquisition by the Group • Nigeria
• Mali
Ι 41
** By virtue of PIC’s large equity holdings in both GREA and Grit, GREA is regarded as a related partyAttractive GREA pipeline and capital investments
GREA’s focus on US embassy corporate accommodation and data centre sectors aligned with Grit strategy
No. Project Country Sector Ownership % Project Start Project End
Secured Projects include inter alia:
1 DH1 (US Embassy) Ethiopia Diplomatic Housing 50% Q1 2019 Q1 2021
2 Metroplex Uganda Retail 100% Q2 2019 Q1 2021
Rendeavour Head Office
3 Ghana Offices 100% Q1 2021 Q1 2022
(Appolonia)
5 DH3 (US Embassy) Kenya Diplomatic Housing 50% Q3 2020 Q1 2022
6 Bollore Mozambique Industrial 0% Q3 2020 Q3 2021
Pipeline Projects
1 DH4 (US Embassy) Mali Diplomatic Housing tbc Q4 2020 Q2 2022
2 Africa Data Centres Nigeria Data Centre tbc Q4 2020 Q1 2021
Ι 42KAFUBU MALL
ZAMBIA
SustainabilityOur sustainability agenda
SDG’s that are significant to our business
Grit employs 76% of local talent
We’ve supported the local We have procedures in place for
We ensure that all genders are across its offices in Africa. We
community in Mauritius during the daily running of the business
valued in the workplace and design customized career paths,
COVID-19 by providing protective aiming to reduce consumption of
given equal opportunities at where our talents are uplifted to
gear, sanitizers and food packs for energy, water, single-use plastic
every level of the business. an international level and
the needy during confinement. and recycling.
networking.
Ι 44Our sustainability priorities - Ongoing efforts to reach our ESG targets
25% 25% > 40% > 65%
Targets Reduction by 2025 Improvement by 2025 Woman leadership positions Localised
CARBON EMISSIONS BUILDING EFFICIENCY GENDER EQUALITY LOCAL REPRESENTATION
2019/20 Achievements 2019/20 Achievements 2019/20 Achievements 2019/20 Achievements
✓ 42% reduction in plastic usage at our ✓ 37.5% rate of recycling of our total ✓ 42% women employed occupy ✓ 78% employees are local.
head office in Mauritius. weekly waste at our head office in managerial positions and above.
Mauritius.
✓ 67% reduction in paper usage at our ✓ 45% of overall Grit staff are women.
head office in Mauritius. ✓ 28% reduction in water usage across our
assets in Africa1 ✓ 33% Board members are women.
✓ 18% reduction in electricity usage across
our assets in Africa1
Ι 45
1. Note: Data provided includes the following properties (Ghana: 5th Avenue, Capital Place) (Kenya: Buffalo Mall) (Morocco: Anfa Place) (Mozambique: Acacia Estate, Hollard/KPMG, Vodacom, Commodity House Phase 1 & Phase 2, Vale Dos Embondeiros, Mall De Tete, Zimpeto Square)
(Zambia: Cosmopolitan Shopping Centre, Kafubu Mall, Mukuba Mall)ESG 2020/21 focus areas
• Further develop our carbon offset strategy and plan in order to reach our target of net zero carbon by 2040.
ENVIRONMENTAL • Deploy our Environmental Sustainability Management and Reporting Policy across all our assets in Africa.
• Develop and implement a strategy to support life on land.
• Maintain our diversity, equality and inclusion target across our offices.
SOCIAL • Strengthen the Performance Management with 360 feedback and introduce a calibration committee to
review the scoring and employee data.
• Launch an Employee Program around wellbeing and work-life balance.
• Enhancing Board Evaluation process.
GOVERNANCE • Appointment of additional Non-Executive Independent Director(s).
• Continued training with the UK code of Corporate Governance 2018 ahead of redomiciling to Guernsey and
Premium listing on the LSE.
Ι 46CLUB MED CAP SKIRRING
SENEGAL
Closing RemarksDividend policy guidance
USD1.50cps interim dividend proposed, reflecting recent strong rent collection trends and the Group’s early progress
towards its near-term LTV target of 45%
➢ To protect the long-term strength of the business, the Board temporarily suspended the
dividend in the second half of FY20 in response to the Covid-19 pandemic
Resumption ➢ As a result of encouraging early results of LTV reduction strategies and recent strong rent
rationale collections the Board has proposed a modest resumption of dividends in HY21
➢ Extra-ordinarily the Board envisages recommending an additional one-off quarterly dividend
in 2021 dependent and measured on a pre-determined set of guiding principles
➢ Further progress and confidence in LTV reduction strategies
➢ Continued strong rent collections, specifically in the hospitality sector
Guiding
principles ➢ Finalisation of the Drive in Trading guarantee restructure
➢ Assessment of the impacts that the second wave of Covid is having on our assets, specifically
in the retail and hospitality sectors
Ι 48Premium Listing & Redomiciliation to Guernsey
Grit is a proudly African, now Premium LSE-Listed and UK-domiciled Company, headquartered in Mauritius
Premium Listing on LSE Redomiciliation to Guernsey
Represents the highest listing standards Migration of corporate seat of listed entity
and places Grit amongst some of the (GREIG1) only; operations, staff, physical head
world’s leading companies in the UK office, tax residency and domicile of OpCo
(GSL2) remain in Mauritius
Company’s Depositary Interest facility on the
Pathway created for inclusion in the LSE collapsed in favour of electronic
FTSE indices; potential improvement of settlement via CREST; Grit’s primary listing
liquidity in shares (see below on SEM- converted to a Secondary Listing
Liquidity across LSE’s Main Market by market cap band AuM of active open-ended funds benchmarked to indices Est. tracking demand by index & min. market cap for inclusion ($m)
FTSE Constituents Premium Standard
350 AuM (LHS) 1000
No. Funds (RHS) FTSE All-Share 57
Free float adjusted turnover ratio
0.44% 900
300
Active Benchmarked AuM ($bn)
800
No. Funds Benchmarked
FTSE 100 7,266
250 700
0.33%
200 600 FTSE 250 1,034
500
0.25% 0.25% 0.25% 0.25%
150 400
0.21% 0.21% FTSE 350 1,034
100 300
0.16% 0.16%
0.15% 0.15% 0.15%
200 STOXX 50 22,864
0.11% 50
100
0.06%
0 0 STOXX 600 1,029
FTSE UK Series STOXX 50 STOXX 600
0% 1% 2% 3% 4% 5% 6%
$0-100m $100-500m $500-1bn $1-5bn $5-10bn Notes:
1. Grit Real Estate Income Group Limited – Grit’s corporate listed entity (TopCo) domiciled in Guernsey
2. Grit Services Limited – Grit’s operational entity (OpCo) domiciled and tax resident in Mauritius
Ι 49Closing Remarks
1 Reduced our exposure to the Retail sector
Strong collection rates and effective management of
2 our assets
Refined our current investment strategy to include more
3 resilient, essential and high-growth sectors
Successful redom to Guersney & Premium Step Up
4 on LSE
Resuming conservative dividend to protect and strengthen
5 the business. LTV and cash collection are key
Confident progress towards improved liquidity
6 in 2021
Ι 50ANFAPLACE MALL
MOROCCO
AnnexuresShareholder Base Evolution
JSE shareholder contraction over time was the primary driver for JSE delisting and to concentrate liquidity through
fewer exchanges
Successful JSE de-listing
19.14
19.16
19.80
21.44
21.55
25.14
27.50
27.69
27.77
27.88
27.88
27.88
27.90
30.91
30.92
30.92
31.73
31.73
34.82
LSE holders have
steadily increased
since the IPO
59.49
59.55
58.91
57.42
57.34
from c.12% to
54.58
54.59
54.59
54.73
54.72
54.73
54.72
55.56
c.35%
69.09
69.08
69.08
68.27
68.27
65.18
21.36
21.30
21.29
21.14
21.11
20.28
17.90
17.72
17.51
17.40
17.40
17.38
16.56
06/19 07/19 08/19 09/19 10/19 11/19 12/19 01/20 02/20 03/20 04/20 05/20 06/20 07/20 08/20 09/20 10/20 11/20 12/20
Ι 53Corporate Awards and Accolades
Recognised for leadership, governance and compliance excellence
EPRA 2020 Best Practices Recommendations Compliance
SEP 2020
Bronze Award – Grit Real Estate Income Group
2020 API Top Africa Real Estate CEO
SEP 2020
of the Year Award – Bronwyn Corbett (CEO)
PWC (Mauritius) Corporate Reporting Awards 2020 Winner for
OCT 2020
Corporate Governance– Grit Real Estate Income Group (Mauritius)
Jan 2021 AIFA Awards Best Growing International Company –
Grit Real Estate Income Group
Ι 54Coronavirus impact on Africa
Africa remains relatively less affected versus other territories
Impact on Grit’s Footprint Countries*
Per 1mn
Country Total cases
pop’n
Grit’s footprint
Morocco 475,355 12,787
Kenya 101,819 1,869
Ghana 70,768 2,249
Zambia 62,633 3,351
Senegal 28,760 1,691
Mozambique 44,600 1,403
Botswana 23,503 9,875
Source: https://covid19.who.int/ - as at 09.02.2021 Mauritius 584 459
Comparatives
USA 27,611,403 83,122
France 3,337,048 51,056
UK 3,945,680 57,938
Germany 2,291,441 27,297
South Africa 1,476,135 24,701
*as at 8 February 2021, per
Source: https://news.yahoo.com/ - Source: https://news.yahoo.com/ - https://www.worldometers.info/coronavirus/
Ι 55 Source: https://covid19.who.int/ - as at 09.02.2021 as at 26.01.2021 as at 28.01.2021Vaccine deployment in Africa
Africa Mauritius
January 2021
90
MILLION DOSES
February 2021
90 million doses ordered for African countries – this will
vaccinate 3% of the African population.
100k
DOSES
100,000 doses deployed in Mauritius to front liners
such as doctors, nurses, police, airport and customs
staff.
600
MILLION DOSES
H2 of 2021
To be distributed in second half of 2021 – this will vaccinate 20%
of the African population.
200k March 2021
200,000 doses arriving in March 2021
DOSES
2021 & 2022
670
MILLION DOSES
Secured by the African Union for deployment in 2021 % 2022 –
this will vaccinate over 20% of the African population. 240k
H1 of 2021
T240,000 additional doses have been ordered from
COVAX through the WHO initiative.
ADDITIONAL DOSES
February 2021
320kDOSES
Additional doses secured for South Africa, Cabo Verde, Rwanda
and Tunisia for deployment in February 2021. 60%
2021
60% of the Mauritian population will be vaccinated
before the end of 2021.
2021
US$20 African Export Bank to provide advance procurement
MILLION commitment of US$20 million for funding of vaccines.
Ι 56
Source:
https://www.afro.who.int/news/covax-expects-start-sending-millions-covid-19-vaccines-africa-february
https://www.africanews.com/2021/01/26/mauritius-begins-vaccinating-frontline-health-workers-against-covid-19//Portfolio Key Metrics – Geographic (as at 31 December 2020)
Botswana Other
% Attributable to GRIT Morocco Mozambique Ghana Mauritius Kenya Zambia Senegal Total
(LLR)5 Investments 6
Number of Properties/Investments 1 9 3 5 2 3 26 1 4 54
Grit attributed Asset Value 1 93,678 313,903 47,766 171,864 27,864 85,119 27,345 23,862 10,479 801,881
Weighted Average Property Cap rate 8.3% 8.2% 8.0% 7.5% 8.3% 8.3% 11.0% 8.3% - 8.1%
Wale by Income % Owned 4.8 4.0 3.0 9.1 6.1 3.0 2.5 11.9 - 5.2
Weighted Average Lease Escalations (Income) %
3.3% 3.5% 2.2% 0.7% 4.3% 3.7% 6.7% 0.0% - 2.9%
Owned
Grit attributed Weighted Avg US$ Rental per m2
$27.50 $24.96 $37.43 $14.34 $10.83 $12.04 $4.41 $8.18 - $16.40
per month2
Full GLA 31,588 88,880 17,603 120,043 19,410 65,535 185,604 16,462 - 545,125
Grit attributed GLA 31,588 88,880 11,337 69,907 16,556 46,886 55,681 16,462 - 337,296
EPRA Operating Cost to Income Ratio3 54.9% 13.7% 12.4% 0.8% 5.3% 16.4% 8.9% 0.0% - 14.3%
EPRA Vacancies 4 27.3% 5.3% 7.5% 0.0% 13.4% 9.6% 5.0% 0.0% - 8.0%
Weighted average cost of property debt (%) 7.4% 7.0% 6.1% 4.2% 5.9% 4.7% 7.0% 4.9% - 6.0%
Debt to property value 7(%) 51.9% 44.6% 40.9% 44.1% 38.7% 62.6% 21.7% 32.9% - 46.5%
1. Value as at 31 December 2020 at Grit proportionate ownership. Portfolio value includes land values for Imperial Ph2 and Buffalo Mall Ph2.
2. Weighted by contractual income
3. Based on EPRA cost to income ratio calculation methodology
4. Vacancy is measured as a percentage of Total Estimated Rental Value, excludes those units under rental guarantee
5. LLR reflected separately to enable comparable analysis of portfolio against prior reporting period, including 4 new acquisitions during the period
6. Includes land owned by Grit (Imperial Ph 2) and associate properties owned by our development associate – Gateway Real Estate Africa
7. Excluding corporate facilities
Ι 57Portfolio Key Metrics – Sectoral (as at 31 December 2020)
Corporate Other
% Attributable to GRIT Hospitality Light Industrial Office Retail LLR Total
Accommodation Investments6
Number of Properties/Investments 2 5 2 8 7 26 4 54
Grit attributed Asset Value 1 138,979 181,497 30,039 203,449 210,092 27,345 10,479 801,881
Weighted Average Property Cap rate 8.4% 7.5% 8.1% 7.9% 8.4% 11.0% - 8.1%
Wale by Income % Owned 3.2 9.7 6.3 4.4 4.0 2.5 - 5.2
Weighted Average Lease Escalations (Income) %
3.4% 0.4% 3.8% 3.3% 3.5% 6.7% - 2.9%
Owned
Grit attributed Weighted Avg US$ Rental per m2 per
$22.79 $13.39 $9.83 $31.34 $16.83 $4.41 - $16.40
month2
Full GLA 43,955 128,239 16,213 52,277 118,838 185,604 - 545,125
Grit attributed GLA 43,955 78,103 16,213 46,010 97,335 55,681 - 337,296
EPRA Operating Cost to Income Ratio3 15.7% - 4.1% 10.3% 31.7% 8.9% - 14.3%
EPRA Vacancies 4 - - - 4.5% 22.8% 5.0% - 8.0%
Weighted average cost of property debt (%) 7.0% 4.2% 4.9% 6.6% 5.9% 7.0% - 6.0%
Debt to property value 7(%) 32.8% 41.9% 25.7% 54.1% 55.2% 26.3% - 46.5%
1. Value as at 30 Value as at 31 December 2020 at Grit proportionate ownership. Portfolio value includes land values for Imperial Ph2 and Buffalo Mall Ph2.
2. Weighted by contractual income
3. Based on EPRA cost to income ratio calculation methodology
4. Vacancy is measured as a percentage of Total Estimated Rental Value, excludes those units under rental guarantee
5. LLR reflected separately to enable comparable analysis of portfolio against prior reporting period, including 4 new acquisitions during the period
6. Includes land owned by Grit (Imperial Ph 2) and associate properties owned by our development associate – Gateway Real Estate Africa
7. Excluding corporate facilities
Ι 58EPRA key performance metrics (as at 31 December 2020)
EPRA COST RATIOS EPRA COST RATIOS
% Attributable to GRIT GLA (m²) EPRA NIY IFRS NIY EPRA TOPPED-UP NIY EPRA VACANCY RATE
(incl. direct vacancy) (excl. direct vacancy)
Mozambique 88,880 7.0% 7.2% 7.6% 5.3% 14.3% 13.7%
Mauritius 69,907 6.4% 6.7% 6.4% 0.0% 0.8% 0.8%
Kenya 16,556 7.1% 6.2% 7.1% 13.4% 8.6% 5.3%
Ghana 11,337 8.1% 8.2% 8.1% 7.5% 13.3% 12.4%
Zambia 46,886 6.6% 7.0% 6.6% 9.6% 17.2% 16.4%
Morocco 31,588 1.6% 1.5% 5.2% 27.3% 67.8% 54.9%
Botswana 55,681 8.9% 8.6% 8.9% 5.0% 9.4% 8.9%
Senegal 16,462 6.6% 6.7% 6.6% - - -
Total 337,296 6.3% 6.4% 7.0% 8.0% 16.0% 14.3%
EPRA COST RATIOS EPRA COST RATIOS
% Attributable to GRIT GLA (m²) EPRA NIY IFRS NIY EPRA TOPPED-UP NIY EPRA VACANCY RATE
(incl. direct vacancy) (excl. direct vacancy)
Office 46,010 7.4% 7.6% 7.4% 4.5% 10.7% 10.3%
Retail 97,335 4.3% 4.2% 6.0% 22.8% 38.0% 31.7%
Light Industrial 16,213 6.0% 6.2% 6.0% 0.0% 4.1% 4.1%
Corporate Accommodation 43,955 7.3% 7.4% 8.4% 0.0% 15.7% 15.7%
LLR 55,681 8.9% 8.6% 8.9% 5.0% 9.4% 8.9%
Hospitality 78,103 6.4% 6.7% 6.4% - - -
Total 337,296 6.3% 6.4% 7.0% 8.0% 16.0% 14.3%
Ι 59Disclaimer
This report has been prepared by Grit Real Estate Income Group Limited ("Grit" or the “Company”) solely for your information and should not be considered to be an offer or solicitation of an offer to buy or sell or subscribe
for any securities, financial instruments or any rights attaching to such securities or financial instruments. In particular, this report does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe for,
securities in any jurisdiction where such offer or solicitation is unlawful.
All information and statistics provided in this presentation relating to targeted acquisitions or post-targeted acquisitions status is predicated on information available to the Company at the time of printing of this
presentation. Such information may be subject to change depending on final negotiations and documentation related to such targeted acquisition.
None of the directors, officers or employees of Grit make any representation or warranty, express or implied, as to the accuracy or completeness of the information or opinions contained in this report.
This report is a summary only and does not include all material information about Grit. This report contains certain statements which are, or may be deemed to be, 'forward-looking statements'. By their nature, these
forward-looking statements and the facts contained therein are subject to a number of known and unknown risks, uncertainties and contingencies, many of which are beyond Grit’s control or influence, and actual results
and events could differ materially from those currently being anticipated as reflected in such statements. These forward-looking statements speak only as of the date of this publication. Past performance should not be
taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. Except as required by any applicable law or regulation, the Company
expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this publication to reflect any change in Grit's expectations or any change in
events, conditions or circumstances on which any such statement is based. Accordingly, undue reliance should not be placed on any such forward-looking statements.
Forward-looking statements have not been reviewed by external auditors and are the responsibility of the Board of Directors of the Company.
All targets mentioned in this presentation are targets only and are not guaranteed. These targets are based on a number of bases and assumptions. which may or may not materialize and have not been assessed or validated
by the auditors. Nothing in this presentation should be construed as a profit forecast.Thank You
Grit Real Estate Income Group
Reg. No. C128881
3rd floor, La Croisette Shopping Centre, Grand Baie 30517, Mauritius
Level 5, Alexander House, 35 Cybercity Ebene 72201, Mauritius
T +230 269 7090
E ir@grit.groupYou can also read
