PRE-CLOSE
UPDATE30 JUNE 2020
1
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
2 BEFORE COVID-19 BUSINESS OVERVIEW
3 SOUTH AFRICAN PORTFOLIO
13 DEVELOPMENTS AT WATERFALL
16 INVESTMENT IN MAS REAL ESTATE INC
17 REST OF AFRICA RETAIL INVESTMENTS
18 BALANCE SHEET MANAGEMENT
21 STRATEGIC SUMMARY
22 QUESTIONS AND ANSWERS
AGENDA
Deloitte head office interior, Waterfall City
2
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
BEFORE COVID-19 BUSINESS OVERVIEW DEC 2019
^ Weighted average based on PGLA
** Weighted average lease expiry on PGLA# Weighted average based on gross rent multiplied by PGLA
* Rental escalation excluding rates multiplied by PGLA, excluding BMW Group SA Regional Distribution Centre
01
Gearing
June 2019: 37.7%
39.1%
05
Collections
June 2019: 99.0%
98.8%
09
Occupancy
June 2019: 93.8%
94.0%
02
Interest cover ratio
June 2019: 1.85 times
1.91 times
06
WALE**
June 2019: 6.5 years
6.1 years
10
Trading density growth
December 20189: 6.9%
5.7%
03
Debt expiry profile
June 2019: 3.6 years
3.1 years
07
Average portfolio age^
June 2019: 6.7 years
7.2 years
04
Interest rate hedging
June 2019: 78.7%
80.2 %
08
Rental escalation*
June 2019: 7.3%
7.2%
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
1ST KEY DRIVER: SOUTH AFRICAN PORTFOLIO
Discussion points
1. Asset management focus areas
2. Sector performance
3. Sectoral profile
4. Rent collections
5. Occupancy
6. Retail - tenants performance
7. Retail - foot count trend
8. Retail - trading impact
9. COVID-19 and the social impact
Mall of Africa interior, Waterfall City
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
ASSET MANAGEMENT FOCUS AREAS
Property Fundamentals
• Collection is key
• Tenant relationships in lieu of sustainability
• Portfolio and tenant diversification strength
• Health and safety top priority for shoppers
and tenants
• Community focus
Property Valuations
• Moving to more sentiment and interpretation
driven due to low transactional volume
• Valuation metrics view through the COVID-19
cycle
MooiRivier Mall interior, Potchefstroom
5
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
SECTOR PERFORMANCE SOUTH AFRICAN PORTFOLIO
Retail
• Essential services spend proving resilient
• Impact of job losses on consumer spending
• Online not problem free which demonstrate the
importance of brick and mortar stores for retailers
• Increased support for local supply chain
Office and mixed-use
• Impact on lease terms and structure
• Greater demand for flexibility in office space
• Rise of agile working supported by technology
• Vibrant precinct / city centers attract and retain
Light industrial
• Knock on effect of retail business failures
• Location is important due to supply chain move
to last-minute logistics in major cities
Hotel
• High occupancy levels before COVID-19
• The industry will recover
Lynnwood Bridge – office and mixed-use, Pretoria
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
SOUTH AFRICAN PORTFOLIO SECTORAL PROFILE
May 2020 May 2020
Tenant sector
Attributable PGLA
as a % of total PGLA Tenant sector
Attributable gross rental
as a % of total gross rent
Fashion 14.0 Fashion 18.6
Financial services 10.9 Financial services 12.9
Food retailers 8.1 Cellular 6.2
DIY 7.5 Consulting engineering 6.0
Cellular 6.3 Government / SOE 5.8
Government / SOE 5.4 Food retailer 5.1
Corporate Branding 5.2 Pharmaceutical 4.1
Pharmaceutical 4.5 Legal services 3.5
Automotive 4.4 Restaurant 3.3
Other 33.7 Other 34.5
Total 100.0 Total 100.0
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
SOUTH AFRICAN PORTFOLIO RENT COLLECTIONS
Collection %* before discounts and deferrals Collection %* after discounts and deferrals
Months Total (%) Retail (%) Non-Retail (%) Total (%) Retail (%) Non-Retail (%)
March 98.0 97.7 99.2 n/a n/a n/a
April and May (average) 70.5 49.9 89.5 82.5 64.3 96.5
June 79.6 66.0 91.7 84.5 72.1 95.0
12 month average to Jun 2020 92.0 87.3 96.8 94.5 90.7 98.3
Deloitte head office, Waterfall City
* as at 23 June 2020
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
SOUTH AFRICAN PORTFOLIO OCCUPANCY
May 2020 Dec 2019
% PGLA m2 % PGLA m2
Retail 96.7 294 177 97.8 289 257
Office and mixed-use 87.3 263 904 85.7 233 714
Like-for-like portfolio 86.2 239 802 86.7 224 234
Buildings completed during the period 100.0 24 102 67.9 9 480
Light industrial 100.0 159 252 100.0 173 266
Hotel 100.0 13 690 100.0 13 690
Year end portfolio occupancy 93.8 731 023 94.0 709 927
Plus: filled post period-end 0.1 728 0.6 4 863
Plus: 2 Eglin 3.1 24 207 2.9 22 215
Adjusted portfolio occupancy 97.0 755 958 97.5 737 005
Waterfall 98.0 478 159 98.6 457 471
Non-Waterfall 95.3 277 799 95.9 279 534
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
TRADING DENSITY* RENT TO TURNOVER#
CENTRE
Mar 2020
R/m2
Mar 2019
R/m2
Growth
%
Mar 2020
%
Mar 2019
%
Change
%
Super-regional 3 220 3 102 3.8
Mall of Africa 3 220 3 102 3.8 8.9 8.7 2.3
Regional 2 800 2 696 3.9
Brooklyn Mall 2 955 2 949 0.2 10.7 10.3 3.9
Eikestad Mall 2 727 2 630 3.7 7.0 6.8 2.9
Garden Route Mall 2 857 2 720 5.0 6.8 6.7 1.5
MooiRivier Mall 2 722 2 594 4.9 6.5 6.5 0.0
Convenience 5 103 5 005 2.0
Glenfair Boulevard 5 204 5 000 4.1 4.8 4.9 (2.0)
Lynnwood Bridge - Retail 4 976 5 011 (0.7) 5.7 5.5 3.6
Neighbourhood 4 240 3 699 14.6
Waterfall Corner 4 240 3 699 14.6 4.4 4.8 (8.3)
Portfolio (effective average) 3 179 3 074 3.4
* Reported tenant turnover divided by PGLA based on a 12 month average # Gross rental including operating costs and rates divided by reported turnover based on a 12 month average
RETAIL TENANTS PERFORMANCE
10
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
RETAIL FOOT COUNT TREND
Mall of AfricaEikestad Mall
Glenfair BoulevardLynnwood Bridge - Retail
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
RETAIL TRADING IMPACT
LOCKDOWN
ALERT LEVELS
Average
number of
stores trading
Number
of days Description of restrictions
Level 5 43 36Only essential goods and services. Transport and movement restrictions
All our malls partially closed, and only essential services traded
Level 4 331 31Essential goods including children’s clothing, winter goods, IT equipment and office supplies
Restaurants and fast food outlets may open for delivery only
Level 3 492 30Most retail permitted, with strict hygiene protocols in place
Restaurants, personal services and tobacco related trade prohibited
Brit to add MOA photos –
Minisha emailed and
WeTransfered
Mall of Africa interior, Waterfall City
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
Shoppers
• Creating a safe shopping environment
• Virtual customer journey to ensure loyalty
Tenants (including their employees)
• Rental relief and assistance provided
• Healthy and safe spaces top priority
• Sustainable leasing options
Governance
• Attacq task team established
• Risk proactivity managed
• Reliance on secured technology
to do business
COVID-19 AND THE SOCIAL IMPACT
Focus on Health and Safety of our employees, shoppers, tenantsand the wider community
Suppliers, brokers and service providers
• Supporting during lockdown
• Working closely to ensure business
continuity
• Supply chain impact
Community
• Attacq Care campaign launched
within our communities
• Support our communities more in need
and vulnerable
13
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
2ND KEY DRIVER: DEVELOPMENTS AT WATERFALL
Discussion points
1. Completed developments
2. Reopening of four sites
3. Developments under construction
4. Pipeline
Nexus Waterfall, Courtyard Hotel, Waterfall City
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
COMPLETED DEVELOPMENTS
* Sectional title
Total
PGLA m²
Effective
PGLA m² % Let
Practical
completion date
Lease
commencement date
Waterfall City
Deloitte head office 42 500 21 250 100.0 Q3 FY20 Q4 FY20
The Ingress – Building 2 4 484 4 484 10.4 Q2 FY20 Q3 FY20
The Ingress – PSG Wealth 4 311 4 311 100.0 Q1 FY20 Q1 FY20
Waterfall Point – Buildings 1 and 3* 4 678 4 678 67.7 let/sold Q2 FY20 Inventory
Waterfall Point – Buildings 2 and 4* 5 169 5 169 100.0 Q2 FY20 Q2 FY20
Waterfall Corporate Campus – Building 5 5 530 2 765 100.0 Q3 FY20 Q3 FY20
TOTAL 66 672 42 657 >85.0
Waterfall Point
The Ingress
Deloitte
Waterfall Corporate Campus, Waterfall City
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
DEVELOPMENTS UNDER CONSTRUCTION
* The impacts of COVID-19 on practical completion and lease commencement dates will be assessed once the impacts on program and productivity can be established with more certainty
Total
PGLA m²
Effective
PGLA m² % Let
Practical
completion date*
Waterfall City
Waterfall Corporate Campus – Building 4 4 976 2 488 Under negotiation Q3 FY21
Nexus Waterfall, Courtyard Hotel (168 keys) 6 273 6 273 100.0 Q2 FY21
Ellipse Waterfall, Newton and Kepler towers (269 units) 17 044 8 522 81.0 sold Q1 FY22
Waterfall Logistics Hub
Nespresso warehouse 4 757 4 757 100.0 Q1 FY21
TOTAL 33 050 22 040 >80.0
Corporate
Campus
Nespresso
Nexus Waterfall
Ellipse
Nexus Waterfall, Courtyard Hotel, Waterfall City
16
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
3RD KEY DRIVER: INVESTMENT IN MAS REAL ESTATE INC
Discussion points
• 20.7% shareholding
• Strong liquidity position and high ICR ratio
• Most developments put on hold in March
2020 and being re-assessed
• High % essential services in WE resulted
in strong collections for March to May 2020
• WE asset sales will take longer. EUR106m
underway with further EUR234m expected
for 2020 calendar year
• No final FY20 dividend
› No impact on Attacq’s FY20 results
• Restructure of Attacq’s EUR debt
› Fall of MAS share price necessitated
restructure of existing share cover covenant
› ± R500m of EUR debt attributed to MAS
› 2.3 times share cover required
Current cover is ±4 times
• Recent acquisition of shares by PKM JV
Roman Value Centre, Romania
17
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
4TH KEY DRIVER: REST OF AFRICA RETAIL INVESTMENTS
Discussion points
• 2.2% of Attacq’s total assets (31 Dec 2019)
• No debt against investment
• Exit will be DE enhancing
• Increased alignment iro AttAfrica
› Exit of minority shareholders for nominal
consideration
› Joint control with Hyprop
› All rights to shareholder loans are now pari
passu
› Attacq has 26.9% share of all cash flows
• Portfolio level debt refinance of in-country
debt to be implemented in near future with
interest savings expected
• Progress being made on disposal
of Ikeja City Mall
• COVID-19 resulted in lockdowns in Ghana
and Nigeria, with resultant impact on trade
and foot count. Situation starting to improve
with lockdowns easing
Accra Mall, Ghana
18
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
BALANCE SHEET MANAGEMENT
Discussion points
1. Liquidity
2. Debt maturity
3. Covenants
Mall of Africa, Waterfall City
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A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
ABSA INVESTEC LIBERTY
MMI NEDBANK OLDMUTUAL
RMB SANLAM SBSA
INTEREST-BEARING DEBT
Funding mix (%) as at May 2020
27.7
May 2020 Dec 2019
Gross interest-bearing debt (R’000) 11 532 778 10 779 330
ZAR debt (R’000) 10 072 435 9 440 412
EUR debt (R’000) 1 460 344 1 358 918
Total hedged as a percentage of total committed facilities (%) 78.8 80.2
Weighted average term of loans (years) 2.8 3.1
Weighted average term of hedges (years) 3.7 3.8
Committed liquidity facilities (R’000) 310 000 310 000
Unrestricted cash balances (R’000) 741 051 602 949
5.5
2.62.6
4.1
42.5
4.2
8.1
2.7
• All funding is provided by local banks and non-bank financial institutions
• The group does not have a domestic medium-term note programme
• No funded or guaranteed B-BBEE shareholding structures
• Foreign currency debt of EUR74.0m but no cross-currency swaps
• No ICR group covenant
20
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
INTEREST-BEARING DEBT | CONTINUED
Negotiations with funders
completed
• Positive impact on maturity date
with weighted average loan term
increasing to 3.3 years
• Credit approval received to
extend debt maturities
to October 2021 and beyond
• No covenant breaches expected
for June 2020
• Credit approval received to relax
portfolio ICR covenants for
December 2020
0 0
852
3 993 3 824
191
2 574
42
1 481
445
1 051
2 160
1 479
2 628
0
1 000
2 000
3 000
4 000
5 000
6 months 12 months 18 months 24 months 36 months 48 months Beyond
48 monthsLoan maturity Swap maturity
30 Jun 2020
31 Dec 2019
0
1 178
3 521
924
2 966
39
2 171
0
1 023572 637
2 843
1 676
2 225
0
1 000
2 000
3 000
4 000
5 000
6 months 12 months 18 months 24 months 36 months 48 months Beyond
48 monthsLoan maturity Swap maturity
21
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
BC World
• South Africa portfolio
› Excellent collections
› High occupancy
› Real growth in trading densities
› Long WALE
• Balance sheet management
› Improved ICR
› Only local funders
› Exit investment in Newtown precinct
› Reduced Rest of Africa exposure
STRATEGIC SUMMARYDC World
• South Arica portfolio
› Tenant collaboration
- Manage the environment
- Collections
- Sectors are behaving differently
- Industries are behaving differently
› Valuations
• Developments at Waterfall
› Closed and opened sites
• Investment in MAS
› Restructured Euro debt
DC World continued
• Rest of Africa retail investment
› Continue implementation of exit strategy
› Will reduce debt with proceeds
• Balance sheet management
› Frequent engagements with funders
› Manage liquidity
- Cash flow
- Maturity of debt
• No final dividend for FY20 or interim dividend
for FY21 to be paid
Cummins SA Regional Office, Waterfall Logistics Hub Ikeja City Mall interior, Nigeria Zimmer Biomet interior, Waterfall City
22
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
QUESTIONS AND ANSWERS
Corporate Campus, Waterfall City
23
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
DISCLAIMER
This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements beliefs or opinions including
statements with respect to the company’s business financial condition and results of operations. These statements which contain the words “anticipate”
“believe” “intend” “estimate” “expect” “forecast” and words of similar meaning reflect the directors’ beliefs and expectations and involve risk and uncertainty
because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts
will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual results and developments to differ
materially from those expressed or implied by these statements and forecasts. Past performance of the company cannot be relied on as a guide to future
performance. Forward-looking statements speak only as at the date of this presentation and the company expressly disclaims any obligations or undertaking to
release any update of or revisions to any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast.
As a result you are cautioned not to place any undue reliance on such forward-looking statements.
This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its
completeness accuracy or fairness. This information is still in draft form and has not been legally verified. The financial information included herein is in draft form
and unaudited. The company its advisers and each of their respective members directors officers and employees are under no obligation to update or keep
current the information contained in this presentation to correct any inaccuracies which may become apparent or to publicly announce the result of any
revision to the statements made herein except where they would be required to do so under applicable law and any opinions expressed in them are subject to
change without notice. No representation or warranty express or implied is given by the company or any of its subsidiary undertakings or affiliates or directors
officers or any other person as to the fairness accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever
for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in
relation to such information.
24
A T T A C Q | J U N E 2 0 2 0 P R E - C L O S E
CORPORATE INFORMATION
01
Independent non-executive directors
P Tredoux
(Chairman)
HR El Haimer
(Lead independent)
04
Attacq Limited
Incorporated in the Republic of South Africa
Registration number 1997/000543/06
JSE share code: ATT ISIN: ZAE000177218
Approved as a REIT by the JSE
Attacq or the company or the group
02
Executive directors
M Hamman (CEO)
R Nana (CFO)
JR van Niekerk (COO)
05
Registered office
ATT House, 2nd Floor
Maxwell Office Park
37 Magwa Crescent
Waterfall City
2090
03
Company secretary
A Matwa
06
Postal address
PostNet suite 016
Private Bag X81
Halfway House
1685
IN Mkhari
BT Nagle
S Shaw-Taylor
JHP van der Merwe
07
Transfer secretaries
Computershare Investor Services (Pty) Ltd
Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
(PO Box 61051, Marshalltown, 2107)
08
Sponsor
Java Capital
09
Contact details
Head of Investor Relations: B Botha
Landline number: +27 12 010 3457