Interim results for the period ended 31 December 2014
Introduction 2
Introduction to Delta International First African (excluding South Africa) focused property fund listed on the JSE Offers investors exposure to USD yielding investment without the use of foreign exchange allowance Primary listing on the Bermudan Stock Exchange with a secondary listing on the JSE AltX* Two properties valued at US$150.4 million** Market capitalisation US$87.6 million Management team with extensive Africa experience and relationships In country asset and property management teams Strong acquisition pipeline Property portfolio (current and pipeline) underpinned by long term leases with strong counterparties *The Company is currently in the process of migrating its primary listing to the Stock Exchange of Mauritius (expected to be completed by mid February 2015) and intends to transfer from the JSE AltX to the JSE Main Board (expected to be completed early March 2015). ** At period ended 31 December 2014. The Hollard Building valued at US$14.5 million transferred on 23 January 2015 3
Corporate structure Freedom Asset Management Asset Managers (Mauritius GBC1) Delta International Property Holdings Limited (Mauritius GBC1) (BSX and JSE AltX listed) DIF 1 Limited Operating Company (Mauritian company) 100% 100% Delta International Mauritius Ltd Operating Company (Mauritius GBC1) 100% Delta International Bahrain (Bahrain Company) 100% HM & K Properties Limited (Mauritian company) 100% SAL Investment Holdings Limited (Mauritian company) 100% 95% 95% Freedom Property Fund SARL (Moroccan Company) Commotor Limitada (Mozambican company) 5% S&C Immobiliaria Limitada (Mozambican company) 3% Anfa Place Shopping Centre Casablanca, Morocco Hollard Building Vodacom Building Maputo, Mozambique Anadarko Building Maputo, Mozambique 4
Highlights 5
Highlights for the interim period under review Maiden dividend US$6.63 cents per share declared for the interim period ended 31 December 2014 Total investment property - US$150.4 million (Morocco: US$112.9 million and Mozambique: US$37.5 million) Portfolio occupancy 92.8% (Anadarko Building 100% occupancy) Market capitalisation US$87.9 million Hollard Building transferred into fund on 23 January 2015 Vodacom Building on track to transfer into the fund within current financial year strengthening the Mozambican property asset base Access to a high quality acquisition pipeline 6
Shareholder profile top 5 shareholders As at 31 December 2014 Units held Holding Delta Property Fund 22 814 372 51.09% Bowwood and Main No 117 5 746 061 12.87% RMB Securities 3 386 211 7.58% Eskom Pension and Provident Fund 1 253 090 2.81% Clucasgray Future Titans Prescient 797 088 1.78% Subtotal 33 996 822 76.13% Other 10 659 625 23.87% Total 44 656 447 100.00% 7
Financial review 8
Financial overview 31 December 2014 USD Distribution per linked unit 6.63 Cost to income ratio 24.4% Gearing level 49.48%* Net asset value per linked unit (excl deferred tax) 211.1 Weighted average rental/m² US$25.11 Average escalation 6.31% *includes debt on deposits paid in respect of the acquisition of the Vodacom and Hollard Buildings 9
Distributable income statement 31 December 2014 USD 000 Net property income 5 166 Rental income 6 837 Property operating expenses (1 671) Other income 66 Administrative expenses Net finance costs Disposal of investment in subsidiary (572) (1 683) Realised foreign currency gain 516 Retained profit not distributed Taxation (530) Distributable income / (loss) for the period 2 963 Number of linked units in issue 44 656 447 Dividend per share (cents) 6.63 Cost to income % 24.4% - - 10
Consolidated property portfolio 11
Delta International at a glance 31 December 2014 Market capitalisation US$87.9 million Number of properties 2 Location of properties Morocco and Mozambique Geographic spread Pan Africa (excluding South Africa) Valuation of the property portfolio US$150.4 million Gross lettable area 38 516m 2 Sectoral profile (by revenue) Retail: 72%; Office: 28% Occupancy rate 92.6% Weighted average rental / m 2 US$25.11 Weighted average escalation 6.31% Gearing levels Funding costs Currency c.49.48% loan to value Average all-in rate of c.6.33% Reporting currency - US$ Mozambique assets US$ Moroccan asset Moroccan Dirham 12
Anfa Place Shopping Centre Location: Anchor tenant: Casablanca, Morocco Label Vie (Carrefour) Purchase price: MAD 945 000 000 Acquisition yield: 7.54% GLA: 30 711m2 Parking bays: 1 148 Anchor lease term: Anchor tenant lease expiry: 3 + 3 + 3 years June 2021 (lease can be cancelled with 6 months notice at the end of each 3 year period) Weighted average escalation: 6.9% Vacancies: 9.33% Average rental: US$28.25 (incl recoveries) US$21.63 (excl recoveries) 13
Anadarko Building Location: Anchor tenant: Maputo, Mozambique Anadarko Petroleum Purchase price: US$ 32 500 000 Acquisition yield: 10.42% GLA: 7 805m2 Parking bays: 185 Anchor lease term: 15 years Anchor tenant lease expiry: May 2025 Weighted average escalation: 4.0% Vacancies: 0% Average rental: US$43.72 (incl recoveries) US$38.78 (excl recoveries) 14
Analysis of the property portfolio Sectoral profile - GLA Geographic profile - GLA 20% 20% 80% 80% Retail Office Sectoral profile Gross rental Casablanca, Morocco Maputo, Mozambique Geographic profile Gross rental 28% 28% 72% 72% Retail Office Casablanca, Morocco Maputo, Mozambique 15
% of rental income % of GLA Analysis of the property portfolio (cont.) Lease expiry profile by GLA Weighted average rental escalation 100% 80% 64.3% Total 6.31% 60% 40% 34.0% Office 4.00% 20% 0% 0.0% 0.0% 0.0% 1.7% 0.0% 2014 2015 2016 2017 2018 2019 2020+ Retail 6.90% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% Lease expiry profile by rental income Weighted average rental per m 2 (US$) 100% 97.4% 80% Total 25.56 60% 40% Office 38.78 20% Retail 21.63 0% 0.0% 2.4% 0.0% 0.0% 0.2% 0.0% 2014 2015 2016 2017 2018 2019 2020+ 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 16
Post review period acquisitions Vodacom Building Location: Anchor tenant: Maputo, Mozambique Vodacom Group Limited Purchase price: US$ 49 000 000 Acquisition yield: 6.97% GLA: 10 659m2 Parking bays: 336 Lease term: Anchor tenant lease expiry: 10 + 10 years fully maintaining lease April 2019 (initial 10 year period expiry) Weighted average escalation: 5% Vacancies: 0% Average rental: US$27.89 (incl recoveries) US$27.83 (excl recoveries) 17
Post review period acquisitions Hollard Building Location: Anchor tenant: Maputo, Mozambique KPMG, BP, Hollard Insurance Purchase price: US$ 14 050 000 Acquisition yield: 10.43% GLA: Parking bays: 98 Anchor lease term: Anchor tenant lease expiry: 4 945m2 Weighted average escalation: 4.1% Vacancies: 0% Average rental: KPMG: 10 years BP: 5 years Hollard: 10 years KPMG: February 2018 BP: February 2018 Hollard: February 2023 US$27.43 (incl recoveries) US$24.17 (excl recoveries) 18
Challenges and prospects 19
Prospects To ensure the sustainability of the current property portfolio Complete the acquisition of the Hollard and Vodacom Buildings respectively within the current financial reporting period Extend its property base in Mozambique through the pre-commitment of the phase 2 development of the Anadarko Building Continue to build on a strong acquisition pipeline and the Fund s investment strategy 20
Thank you