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Interim Results Presentation FOR THE 6 MONTHS ENDED 31 DECEMBER 2017

Interim Results Presentation - Grit · Interim Results Presentation FOR THE 6 MONTHS ENDED 31 DECEMBER 2017. Ι2 Group Review Market Overview Portfolio Overview H1 FY18 Financial

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  • Interim Results PresentationFOR THE 6 MONTHS ENDED 31 DECEMBER 2017

  • Ι 2

    Group Review

    Market Overview

    Portfolio Overview

    H1 FY18 Financial Review

    Case Studies

    Looking Ahead

    Q&A

    Proceedings

  • Ι 3

    Grit Team Presenters

    Bronwyn CorbettChief Executive OfficerB.Comm (Acc) (Univ. of Natal, PMB), CA(SA)

    Leon van de MoorteleChief Finance OfficerBCompt (Hons), CA(SA)

    Left to right: Greg Pearson (Group Director), Moira van der Westhuizen (Chief Integration Officer), Bronwyn Corbett (CEO), Heidi Rix (Group General Manager), Leon van de Moortele (CFO)

  • Ι 4

    Africa Macro Roundup

    Morocco➢ Dirham allowed to trade within a

    band of +/- 2.5% around its peg➢ Real GDP growth of 4.6% in 2017

    compared to 1.2% in 2016

    que➢ Higher natural gas prices and FDI

    inflows are expected to propel solid GDP growth

    ➢ Anadarko’s liquefied natural-gas project in the north of the nation approved, estimated at about $20 billion

    Mauritius➢ GDP growth rates are projected to

    increase to 4.2% in 2018 and 4.3% in 2019

    ➢ Tourism arrivals increase by +5.2% y/y in December 2017

    Zambia➢ B3 rating affirmed by Moody’s and

    outlook to ‘stable’ from ‘negative’

    Kenya➢ Kenya's presidential rerun handed

    over victory to Uhuru Kenyatta

    Botswana➢ S&P to maintain Botswana’s

    sovereign credit rating at A-; raises outlook to ‘stable’ from ‘negative’

    RwandaSenegal

    Approved Jurisdictions

    ➢ The IMF expects Ghana to grow at 8.9% in real terms in 2018

    Target Jurisdiction

    Seychelles

  • Ι 5

    GroupOverview

    Victoria Beachcomber Resort & Spa, Mauritius

  • Ι 6

    Interim Results Highlights

    US$6.07cpswithin forecast

    1. Weighted Average Lease Expiry

    96.1%5

    Due to fluctuating vacancies in re-

    development at Anfa

    7.4 years 5.69%3

    -9 bps vs. FY17

    Nil As per guidance

    8.6% on the SEM 9.6% on the JSE

    2. Weighted Average Cost of Debt3. As at 31 December 2017

    44.8%6

    Post transfer of recent acquisitions

    US$152.7 cps4

    +2.1% from FY17

    4. US$158.7 cps pre dividend

    H1 FY18 Distribution WALE1 WACD2 NAV

    Dividend Yield Portfolio Occupancy Property LTV Capital Raised

    6. Excluding revolver facilities5. 98.7%, excluding vacancies at Anfa re-development

  • Ι 7

    Improved liquidity through dual-listing on the JSE Main Board and SEM Official Market Market capitalisation: US$302m*Dividend yield: 8.6% (SEM); 9.6% (JSE)*Free Float: 45.9% (as per JSE)

    Attractive and sustainable hard currency income stream8 declared distributions in line with Management guidanceSemi-annual dividend payments

    Geographic diversification into growing African countries, ex-SAFirst-mover advantage and unique investment product offering48.6% of portfolio in investment grade countries

    Investment into high income-yielding real estate assets with global top-grade tenants20 properties; Total GLA: 295,853m²Assets value of US$592m; Occupancy rate of 96.1%WALE: 7.4 years

    Supportive shareholdersNew investments by African pension funds and foreign institutional investors

    Strong management expertiseSupported by expanding in-country asset and property management teams

    Grit – At A Glance

    *As at 03 February 2018

  • Ι 8

    Marginsof

    Safety

    01

    Hard currencyRepatriation

    of funds

    Political risk& macro-

    economicsLand tenure

    Ability to raise debt

    Counterparty

    02 03 04 05 06

    Risk Mitigation

  • Ι 9

    team• Strong & experienced management• Internal management committee

    • In-country asset & property management• Supportive shareholders & counterparties

    strength• Robust portfolio• Sound track record of ability to raise capital

    consistency• Hard currency returns underpinned by solid

    property fundamentals• High occupancy rates & quality tenants

    growth• Expansion & diversification of portfolio• Shareholder value & returns • Existing expertise

    v

    “Grit is passion and perseverance, for very long term goals. It’s the day in, day out”

  • Ι 10

    Market Overview

    Commodity House Phase 2, Mozambique

  • Ι 11

    Shareholder Base

    7%

    37%

    15%

    37%

    1%3%

    Shareholders By Type

    Management & Staff

    Investment Holding Companies

    Mutual Funds

    Pension Funds

    Insurance Companies

    Retails

    • New institutional shareholders from the UK and Ghana

    • New investments by African Pension Funds

    • Increased participation by retail investors and improvements in liquidity

    • Anchor shareholders:

    ▪ 32% Public Investment Corporation / Government Employees

    ▪ 11% Delta Property Fund Ltd

    ▪ 11% Drive In Trading Proprietary Ltd

    ▪ 7% Management & Staff

    ▪ 5% Eskom Pension & Provident Fund

    Register %

    South Africa 67

    Mauritius 33

    TOTAL 100

    As at 31 December 2017

  • Ι 12

    1. For period H1 FY18

    Note: All other figures as at 03 Feb 2018

    Grit in Figures

    Price

    JSE: ZAR 15.60 (US$1.29)

    SEM: US$1.45

    Discount to NAV

    JSE: 15.4%SEM: 5.0%

    Market

    Capitalisation

    JSE: ZAR3.3bnSEM: US$302m

    Free Float

    JSE: 45.9%SEM: Not reported

    Trading Frequency1

    JSE: 74%SEM: 56%

    Average Daily

    Volume Traded1

    JSE: 36,600SEM: 24,574

    0

    100

    200

    300

    400

    500

    600

    700

    800

    900

    1,000

    1,100

    Nu

    mb

    er o

    f Sh

    ares

    Tra

    ded

    (‘0

    00

    s)

    Liquidity of Grit Shares

    JSE Volume SEM Volume

    • SEM-10 Index inclusion since 04 October 2017

    • Inclusion in Cloud Atlas AMI series BIG 50 EX-SA index, effective since 16 January 2018

    • Cloud Atlas AMI Real Estate ex-South Africa ETF upcoming (with Grit as a key constituent in the underlying index)

  • Ι 13

    0.0%

    10.0%

    20.0%

    30.0%

    40.0%

    50.0%

    60.0%

    70.0%

    80.0%

    H1 FY17 H1 FY18

    Trading Frequency

    JSE SEM

    0

    5

    10

    15

    20

    25

    30

    35

    40

    H1 FY17 H1 FY18

    USD

    (‘0

    00

    s)

    Avg. Daily Value Traded (SEM)

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    3,500

    4,000

    4,500

    5,000

    H1 FY17 H1 FY18

    Nu

    mb

    er o

    f Sh

    ares

    (‘0

    00

    s)

    Total Volume Traded

    JSE SEM

    Grit Trading Statistics

    TRADINGFREQUENCY

    H1FY17

    H1FY18

    JSE 54.8% 73.8%

    SEM 2.4% 55.6%

    TOTAL TURNOVER

    JSE (ZAR) 66,174,871 74,439,561

    SEM (USD) 124,852 4,186,706

    AVERAGE DAILY VALUE TRADED

    JSE (ZAR) 525,197 590,790

    SEM (USD) 999 33,764

    TOTAL VOLUME TRADED(# OF SHARES)

    JSE 3,478,039 4,611,634

    SEM 72,500 3,047,221

    As at 31 January 2018

    480

    500

    520

    540

    560

    580

    600

    H1 FY17 H1 FY18

    ZAR

    (‘0

    00

    s)

    Avg. Daily Value Traded (JSE)

  • Ι 14 Source: National Association of Real Estate Investment Trusts (as at 26 Jan 2018); Returns in USD terms

    Target of 12% total USD return for Grit

    for FY18

    Target of8.25% dividend yield and 3.75%

    NAV growth

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    Global Americas Asia/Pacific Europe Middle East/ Africa Grit

    Dividend Yield (%)

    2015 2016 2017

    Differentiating Grit from Global REITs

  • Ι 15 Mauricia Beachcomber Resort & Spa, Mauritius

    Portfolio Overview

  • Ι 16

    ZIMPETO SQUARECOMMODITY HOUSE

    HOLLARD

    BOLLORE

    ANFA PLACE SHOPPING CENTER

    VDE HOUSING ESTATE

    MUKUBA MALL (50%)

    KAFUBU MALL (50%)

    COSMOPOLITAN MALL (50%)

    BUFFALO MALL (50%)

    VODACOM

    BARCLAYS HOUSE

    MALL DE TETE IMPERIAL:

    LUX:

    Tamassa

    BEACHCOMBER

    RETAILLIGHT INDUSTRIAL

    HOSPITALITYCORPORATERESIDENTIAL

    HELD FOR DEVELOPMENT

    LLR (6.25%)

    • Properties are owned at 100% unless specified otherwise;• Commodity House Phase 2 is a building developed on the same site as the existing Commodity House Phase 1 (previously 3412 Julius Nyerere) in Maputo

    RETAIL COMMERCIAL LIGHT INDUSTRIAL

    HOSPITALITYCORPORATE ACCOMMODATION

    LISTED EQUITY

    Mauricia (44%)

    Canonnier (44%)

    Victoria (44%)

    Phase 1

    Phase 2 (held for development)

    KenyaMozambique Morocco ZambiaMauritius Botswana

    Portfolio Overview

    Phase 1

    Phase 2

  • Ι 17

    As at 31 January 2018 Retail Commercial Light Industrial HospitalityCorporate

    AccommodationHeld for

    DevelopmentTotal

    Number of Properties 7 5 2 4 1 1 20

    Property Value/Acquisition Price (US$ m)

    235.5 143.6 24.9 136.9 34.3 8.1 US$583.5m3

    Weighted Average Capitalisation Rate (%) 7.0 8.4 9.4 7.5 10.8 n/a 7.8%

    WALE (years) 4.3 8.8 7.2 12.1 2.7 n/a 7.4 years

    Weighted Average Lease Escalations (%) 3.9 3.6 1.9 1.1 3.2 n/a 3.0%

    Weighted Average Gross US$ Rental per m² per month1

    22.5 28.6 10.7 17.8 22.9 n/aUS$21.1/m²

    pm

    Gross Lettable Area [GLA] (m2) 83,963 35,316 19,934 57,397 12,966 n/a 209,576 m2

    Full GLA (m2) 120,712 35,316 19,934 106,925 12,966 n/a 295,853 m2

    Operating Cost to Income ratio1 (%) 30.8 6.1 3.0 0.0 12.2 n/a 15.3%

    Vacancies (%) 1.2 0.3 0.0 0.0 0.0 18.6 3.9%

    Weighted Average Cost of Property Debt1 (%) 5.6 6.6 10.6 4.3 0.1 n/a 5.8%

    Debt to Property Value2 (%) 46.6 47.2 34.3 46.2 34.2 n/a 44.8%

    1. Half year end 31 December 20172. Excluding revolver facilities 3. Excludes listed investments, loans receivables and other financial assets

    Portfolio Key Metrics

  • Ι 18

    32.8%

    20.3%

    4.3%

    24.2%

    17.8%

    0.6%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%

    30.0%

    35.0%

    40.0%

    45.0%

    50.0%

    Diversification of Portfolio

    Note: Split by asset value

    Geographical Split of Property Sectoral Split of Property

    H1 FY18FY17FY16FY15H1 FY18FY17FY16FY15

    Mozambique Zambia Kenya Mauritius Morocco Botswana

    29.3%

    38.2%

    4.5%

    21.9%

    5.5%

    0.6%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%

    30.0%

    35.0%

    40.0%

    45.0%

    50.0%

    Commercial Retail Light Industrial Hospitality CorporateAccommodation

    Listed Equity

  • Ι 19

    Rank Key Tenants Industry JurisdictionGLA

    (% of Group Total)

    Income(% of Group

    Total)

    LeaseCovenant

    Lease Currency

    1 Hospitality 18% 14% Triple Net EUR

    2 Mining 5% 10% Gross USD

    3 Hospitality 10% 9% Triple Net EUR

    4 Telecom. 5% 9% Double Net USD

    5 Retail 8% 7% Gross USD

    Note: Ranked by Income

    Key Tenants Schedule

  • Ι 20

    Rank Key Tenants Industry JurisdictionGLA

    (% of Group Total)

    Income(% of Group

    Total)

    LeaseCovenant

    Lease Currency

    6Oil & Gas

    Exploration2% 5% Gross USD

    7 Retail 5% 5% Gross USD / ZMW

    8 Retail 4% 4% Gross USD / ZMW

    9 Logistics 7% 4% Triple Net USD

    10 Retail 2% 4% Gross MAD

    Key Tenants Schedule (Cont.)

    Note: Ranked by Income

  • Ι 21

    H1 FY18 Financial Review

    Cosmopolitan Mall, Zambia

  • Ι 22

    NAV per share (US$ cps)

    H1 FY18: 158.7

    FY17: 150.9

    Loan to Value

    H1 FY18: 49.2%

    FY17: 41.6%

    GROUP

    H1 FY18 FY17

    US$m US$m Movement

    Assets

    Non-current assetsTotal Property Investments 592.4 507.6 16.7%

    Other non-current assets 28.4 26.5 7.2%

    Total non-current assets 620.9 534.1 16.3%

    Total current assets 50.9 51.0 -0.2%

    Total assets 671.7 585.2 14.8%

    Equity and liabilities

    Total equity attributable to equity holders

    Share capital 320.0 320.0 -

    Foreign currency translation reserve 2.7 1.1 145.5%

    Antecedent dividend reserve - 1.3

    Retained (loss)/income 8.3 (7.6)

    Total equity attributable to equity holders 331.0 314.7 5.2%

    Liabilities

    Non-current liabilities

    Preference shares 12.8 12.8 -

    Interest-bearing borrowings 261.5 187.4 39.5%

    Other non-current liabilities 1.3 1.1 18.2%

    Total non-current liabilities 275.6 201.4 36.8%

    Total current liabilities 65.1 69.1 -5.8%

    Total liabilities 340.8 270.4 26.0%

    Total equity and liabilities 671.7 585.2 14.8%

    Statement ofFinancial Position

  • Ι 23

    Property Investment Updates

    Ι 23

    210.4

    295.0

    507.6

    592.4

    0.0

    100.0

    200.0

    300.0

    400.0

    500.0

    600.0

    2015 2016 2017 as at 31-Aug-17

    Total Property Investment Value (US$m)

    • Total Property Investments

    • US$592m (+16.7%)

    • Transfers completed:

    • Imperial Distribution Centre

    (Kenya), August 17

    • Beachcomber Hotels

    (Mauritius), August 17

    • Commodity House Phase 2

    (Mozambique) development

    completed, November 17

    • 6.25% stake in Letlole La Rona

    Limited (Botswana)

    FY15 FY16 FY17 H1 FY18

  • Ι 24

    Evolution Of NAV Per Share

    +2.08%

  • Ι 25

    Debt Summary

    Barclays House, Mauritius

  • Ι 26

    70.6%

    28.4%

    0.9%0.0%

    10.0%

    20.0%

    30.0%

    40.0%

    50.0%

    60.0%

    70.0%

    80.0%

    USD EUR MZN

    2017 2018

    Debt Currency Exposure Investment Currency Exposure

    Debt Summary

    60.1%

    39.9%

    0.0%

    10.0%

    20.0%

    30.0%

    40.0%

    50.0%

    60.0%

    70.0%

    80.0%

    USD EUR

    2017 2018

    -

    10,000

    20,000

    30,000

    40,000

    50,000

    60,000

    70,000

    80,000

    FY17 H1 FY18

    EUR

    ('0

    00

    s)

    Net EUR Exposure

    -29.6%

  • Ι 27

    6.94%

    6.22%

    5.78%

    5.69%

    0.2%

    0.4%

    0.6%

    0.8%

    1.0%

    1.2%

    1.4%

    1.6%

    0.0%

    1.0%

    2.0%

    3.0%

    4.0%

    5.0%

    6.0%

    7.0%

    8.0%

    FY2015 FY2016 FY2017 HY2018

    Weighted Average Cost of Debt

    WACD Libor

    H1 FY18FY17FY16FY15

    Debt Summary (Cont.)

  • Ι 28

    -

    20,000

    40,000

    60,000

    80,000

    100,000

    120,000

    140,000

    160,000

    Feb 18 Apr 18 Jul 18 Sep 18 Nov 18 Feb 19 Mar-19 Sep 19 Mar 20 Dec 20 2021onwards

    US$

    (‘0

    00

    s)Debt Expiry Profile

    Debt Expiry Profile

  • Ι 29

    Multi-Bank Strategy

    31.5%

    23.1%

    17.1%

    13.2%

    10.4%

    3.8%

    1.0%0.0% 0.0%

    0.0%

    5.0%

    10.0%

    15.0%

    20.0%

    25.0%

    30.0%

    35.0%

    Bank of China Standard Bank Investec Bank State BankMauritius

    Barclays Afrasia Bank Banco Unico Rockcastle /Standard Bank

    Nedbank SouthAfrica

    Debt Provider

    FY17 H1 FY18

  • Ι 30

    H1 FY18 Distributable Income

    Cannonier Beachcomber Resort & Spa, Mauritius

  • Ι 31

    Distributable Income Movement

    Distributable Income MovementH1 FY18

    US$mH2 FY17

    US$mH1 FY17

    US$m

    Rental Income 15.2 13.6 10.7

    Share in profit from associates (excluding non-cash items)

    5.5 2.7 2.5

    Operating expenses (2.7) (4.2) (2.9)

    Other Income 1.6 1.9 1.4

    Admin Expenses (3.2) (2.6) (3.0)

    Amortisation of Intangible Assets 0.0 (0.2) 0.3

    Interest Income 3.8 1.7 0.3

    Interest Expense (8.8) (6.7) (4.3)

    Realised Exchange Gains 0.2 0.1 1.9

    Current Tax - 0.9 (0.9)

    Antecedant Dividend - 1.3 0.9

    Tax credits utilised 1.1 - -

    Profits (retained)/released 0.2 (0.2) 0.1

    Distributable Earnings Attributable to Shareholders

    12.7 8.3 6.8

    Dividend per share (US$ cps) 6.07 5.95 6.12

    Weighted Average Cost of Debt

    H1 FY18: 5.69%H2 FY17: 5.78%

    Admin Cost to Asset Value

    H1 FY18: 1.1%H2 FY17: 1.1%

    Operating Costs to Income

    H1 FY18: 15.3%H2 FY17: 27.5%

  • Ι 32

    Dividend History

    • Distribution: +2.0% vs H2 FY17

    • Full year dividend within 3-5%

    target range

    • Full year dividend:

    H1 FY18 - US$6.07 cps

    H2 FY17 - US$5.95 cps

    11.29 11.75 12.07

    6.07

    0.00

    2.00

    4.00

    6.00

    8.00

    10.00

    12.00

    14.00

    FY15 FY16 FY17 H1 FY18

    US$

    Cen

    ts p

    er s

    har

    e (c

    ps)

    Target

    +4.1%+2.7%

  • Ι 33

    Case Studies

    Hollard, Mozambique

  • Ι 34Ι 34

    Grit’s Transformational Strategy

    • Grit is committed to supporting the underlying economies of its operations and to

    being a responsible corporate citizen.

    • Empowering local communities within all areas of Grit’s operations and

    stakeholders, through employment, knowledge transfer and best practice policies.

    • The implementation of Grit’s transformational strategy will secure investor

    support from local and international DFIs for future capital raises, enabling Grit

    to:

    • grow the company’s investment base;

    • enhance liquidity; and

    • ultimately create value for all shareholders.

    • Grit’s transformational partner will be actively involved in the improvement of

    Grit’s operations, including but not limited to:

    • Adding strategic insight to the Grit executive;

    • Devising property management strategies;

    • Driving inroads to new investment jurisdictions; and

    • Pipeline development.

  • Ι 35

    Margins of Safety Opportunities Investment Strategy

    Hard currency leasesAccra as a regional

    economic and logistics hubGrit as the preferred

    corporate real estate partner

    Proven ability to repatriate funds

    Accretive transactionsEnhanced distribution to

    shareholders

    Insurance against political risk

    Ghana as an economic powerhouse in Africa

    Regional Diversification

    Security around land tenure

    Increased WALE Sustainable income streams

    Ability to secure debt Cost effective funding Accessing local capital market

    with a unique investment offering

    Tax Efficient Structuring

    REIT legislation(expected mid-2018)

    Investment vehicle for local pension funds and insurance

    companies Strategic partnerships

    and in-country resources

    Leveraging off local expertise; Knowledge

    Transfer

    Developing an internally managed leading property

    portfolio

    Investment into Ghana is ramping up, with upcoming developments such as the new airport due for completion in April 2018

  • Ι 36

    Margins of Safety Opportunities Investment Strategy

    Hard currency leasesStable local currency partially pegged to a

    basket of hard currencies

    Grit as a key corporate real estate partner; Target hard

    currency leases

    Proven ability to repatriate funds

    Accretive transactionsEnhanced distribution to

    shareholders

    Insurance against political risk

    Investment Grade jurisdiction

    Platform for growth in Botswana and the region

    Security around land tenure

    Freehold and long-dated leasehold assets

    Sustainable income streams

    Ability to secure debt Cost effective funding Accessing local capital market

    with a unique investment offering

    Strategic partnerships and in-country

    resources

    Leveraging off local expertise; Knowledge

    Transfer

    Developing an internally managed leading property

    portfolio

    Botswana is the country with the highest Investment Grade rating in Africa, with an S&P A- rating with and a Moody’s A2 rating

  • Ι 37

    Anfa Place Shopping Center

    Ι 37

    Current Revitalisation Project Status• Required Vacancy Creation for layout

    improvements: +/- 95% complete• Required Tenancy Relocation Commitment

    for improved tenancy mix: +/- 85% complete

    • Authority Project Approval: In process

    Key Tenancies Successfully Relocated for Project Objective• Body Shop• La Vie en Rose• Gymbo – National Moroccan Children’s

    Entertainment Brand • Jennyfer

    New Tenants Secured via Project• LC Waikiki (Global Turkish Brand)• Samsung• Marwa (National Moroccan Brand)• Ipanema• Colins• Youride• The Doorz (National Moroccan Brand)• Fauchon• Chili’s• Long John Silver• Kiabi Regional Offices• 2793m² of offers under negotiation

    Existing Tenancies to Expand as Part of Project• New Yorker• Terranova• McDonalds

    Key Tenancies in Process of Reconfiguration or Relocation• Marks & Spencer• Beauty Success (Global French Brand)• Charles & Keith• Burger King• Domino’s Pizza• Kosebasi

  • Ι 38

    • Country diversification into new

    jurisdictions with promising growth

    prospects

    • Introducing new shareholders at

    NAV

    • Expansion of international brands,

    tenant base and relationships

    • Asset growth through new

    accretive acquisitions

    • Asset diversification whilst

    ensuring secure, hard currency

    leases

    • Target 12% total USD return: 8.25%

    dividend yield and 3.75% NAV

    growth

    • Forecast dividend growth 3% - 5%

    Looking ahead

  • Ι 39

    Grit Real Estate Income GroupReg. No. C128881

    3rd floor, La Croisette Shopping Centre, Grand Baie 30517, MauritiusLevel 5, Alexander House, 35 Cybercity Ebene 72201, Mauritius

    T: +230 269 7090E: [email protected]

    Thank You

  • Ι 40

    Annexure

  • Ι 41

    July 2014Acquisition of Anfa Place Shopping Center (Morocco) for US$114.68m

    July 2014Acquired Anadarko Building (Mozambique) as its 1st asset for US$32.5m

    July 2014Completion of inward listing on the JSE Limited’s ALT-X board as Delta International

    Acquisition of Assets Key Events

    Timeline - 2014

    41

  • Ι 42

    Acquisition of Assets Key Events

    Timeline - 2015

    March 2015Debut on Mauritius Stock Exchange (SEM) and migration from BSX

    Maiden distribution of US$6.63cps

    April 2015Introduction of the Public Investment Corporation as Anchor Shareholder in US$42.0m capital raise

    April 2015Acquisition of Hollard/KPMG (Mozambique) building for US$14.9m

    May 2015Acquired the Vodacom Building (Mozambique) US$49m

    June 2015Maiden issue of shares on the SEM

    August 2015Acquisition of ZimpetoSquare (Mozambique) For US$10.2m

    August 2015Paid distribution of US$4.65cps, taking FY2015 distribution to a total of US$11.28cps

  • Ι 43

    Acquisition of Assets Key Events

    Timeline - 2015 (Cont.)

    November 2015Delta Africa and Pivotal merger announcement and formation of Mara Delta

    December 2015Acquired Kafubu Mall and MukubaMall (Zambia)US$40.6m

  • Ι 44

    Acquisition of Assets Key Events

    Timeline - 2016

    April 2016Acquisition of Buffalo Mall (Kenya) & Bollore Warehouse (Mozambique)Combined: US$14.8m

    March 2016Acquisition of Barclays House (Mauritius)US$13.6m

    May 2016Delta Africa officially becomes Mara Delta –the largest pan African income fund listed on the JSE and SEM

    December 2016Leaseback acquisition of a 44.4% stake in Beachcomber Hospitality Investments (BHI), owner of 3 luxury resorts in Mauritius for US$83.4m

    March 2016Paid distribution of US$6.17cps for sixmonth period ended 31 December 2015

    October 2016Paid distribution of US$5.58cps,taking FY2016 distribution to a totalof US$11.75 cps

  • Ι 45

    March 2017Leaseback acquisition of Tamassa Resort (Mauritius) from Lux Resorts for US$24.2m

    June 2017 Raised US$121 million by way of a rights offer at an issue price of US$1.40 per share, significantly increasing market cap and asset value to c.US$600 million

    Timeline - 2017

    Acquisition of Assets Key Events

    March 2017Paid fifth distribution of US$6.12cps

    June 2017 Sixth distribution – clean out dividend for period 1 Jan 17 to 30 Apr 17 of US$4.57cps prior to rights offer

    June 2017Acquisition of Cosmopolitan Mall (Zambia) for US$37.2m

    July 2017Shareholders approved Grit’s rebrand and name change, reflecting the Group’s current reality and future growth ambitions

    August 2017Acquisition of Imperial Distribution (Kenya) for US$18m

    October 2017Inclusion into the SEM-10 Index

  • Ι 46

    Bronwyn CorbettChief Executive Officer

    B.Comm (Acc) (Univ. of Natal, PMB), CA(SA)

    Bronwyn is a founding member and CEO of Grit Real Estate Income Group, the largest pan-African focused real estate group listed on the JSE and SEM (stock exchanges in South Africa and Mauritius respectively). Bronwyn has over 10 years’ experience in the real estate investment sector. She worked in a real estate investment firm for 4 years as Financial Director before joining Motseng Investment Holdings in April 2009 as CFO. Together with the CEO, she was instrumental in growing the company’s direct real estate exposure to ZAR2 billion in 3 years, before listing the portfolio on the JSE as Delta Property Fund – where she held the positions of CFO and CIO. Bronwyn was part of the executive team that grew Delta Property Fund to a portfolio valued at ZAR12 billion in 4 years and converting the structure to a REIT. In 2014, she co-founded Delta International Property where she was appointed CEO. Under Bronwyn’s leadership, Grit has consistently achieved Dollar-based distribution forecasts exceeding 7%. She has driven the growth of the portfolio from US$140 million and two assets, to approximately US$590 million and 20 assets across five jurisdictions.

    Leon van de MoorteleChief Finance Officer

    BCompt (Hons), CA(SA)

    Leon joined Grit in April 2015, as CFO, where he has utilised his tax structuring knowledge and experience in operatingin Africa to expand the asset base of the group. After completing articles with PwC, Leon moved to the Global RiskManagement Services within PwC, where he become the Senior Manager in charge of Data Management. In 2004, hemoved to Solenta Aviation where he became Group Finance Director within 18 months. During his tenure as GroupFinance Director, the group expanded from 12 aircraft to 48 aircraft, operating in 8 African countries (including SouthAfrica, Mozambique, Algeria, Ghana, Gabon, Kenya, Tanzania and Cote d’Ivoire). He joined Grit in April 2015, as CFO,where he has continued to utilise his tax structuring knowledge and experience in operating in Africa to expand the

    asset base of the group

    Greg PearsonGroup Director

    MCMI, Elec Eng.

    Greg Pearson is a founder member of Grit and has been instrumental in sustaining its rapid growth since inception in2014. Prior to Grit, Greg was responsible for expanding AECOM's African footprint. His hands-on experience hasallowed him to develop an expansive strategic business network with local and global developers as well as influentialindustry players on the continent and beyond. He has successfully completed a series of developments across theoffice, retail, leisure, education and healthcare sectors. Greg is registered with the Chartered Management Instituteand a graduate of Kingston University, London.

    Executive Team

  • Ι 47

    Heidi RixGroup General Manager

    B.Comm LLB

    Heidi joined Grit as Chief Operating Officer in May 2016. She has 19 years’ commercial and real estate experience and is an admitted attorney holding BComm and LLB degrees in addition to specialised real estate sector qualifications. Heidi has recently taken on an expanded role as Group General Manager. Before joining Grit, Heidi from Broll Property Group where she was a Group Director and Managing Director of their Investor Services Division. In this capacity, Heidi was responsible for the Asset Management, Property Management and Retail Leasing businesses at Broll. Her expertise include asset management, investment management, portfolio management, portfolio and management structures and performance management, lease management models, value optimisation of property assets, property acquisitions and disposals, real estate development projects (Greenfield opportunities), redevelopment/refurbishment projects (Brownfield opportunities) and portfolio analysis and due diligence. Prior to joining Broll, Heidi successfully managed her own property investment consulting business for over two years and held previous positions in the industry as a director for Atterbury Asset Managers as well as General Manager for RMB Properties (Pty) Ltd (now known as Eris Property Group).

    Moira van der WesthuizenChief Integration Officer

    B.Comm (Hons), CA(SA)

    Moira joined Grit in May 2016 as the Chief Integration Officer. She holds a B Com (Honours) degree from the University of South Africa and is a qualified Chartered Accountant with more than two decades’ experience in auditing, finance and business, including managing her own practice before partnering with an audit and accounting practice in 2005. In 2008 Moira relocated to Mauritius where she worked for Investec Bank and later the CCI Group as Group Financial Controller before joining Grit. As CIO, Moira oversees the co-ordination of all interacting systems within the Group and its extended environments, ensuring the business is internally and externally coherent and congruent. This is achieved through the effective integration of all business systems and processes with other stakeholders, including corporate partners and statutory bodies. Moira is responsible for making recommendations to the social and ethics committee, a sub-committee of the board, on all matters related to Grit’s corporate social investment (CSI) programme.

    Jaco van ZylDeputy Chief Financial

    Officer

    BCompt (Hons), BCom, CA(SA)

    Jaco holds a BCom Degree from the North-West University, a BCompt Honours Degree from the University of South Africa and he is a qualified Chartered Accountant. After completing articles he moved to Federal Airlines as Financial Manager and ultimately assumed responsibility of the full finance function of the South African and Mozambican operations. In January 2012 he joined JSE-listed group, Sentula Mining’s exploration drilling division Geosearch as the Financial Manager and developed into the CFO for of the Geosearch group. Here his African experience expanded further into Mauritius, Botswana and Mozambique. Since joining Grit in February 2016, Jaco has assumed responsibility for the groups reporting and treasury function, effectively flowing funds within the Grit structure and maintaining debt facilities.

    Executive Team

  • Ι 48

    Sandile NomveteBoard Chairman

    Listed Directorships: 3

    Appointed to the board on

    14 August 2014

    Sandile is a graduate of the Property Development Programme from the University of Cape Town Graduate School of Business and holds an executive Development Programme and Finance for non-Financial Managers Diploma from WITS Graduate School of Business. Sandile co-founded Motseng Investment Holdings which eventually listed as a REIT in 2012 as Delta Property Fund ("Delta SA"). In his position as CEO, Sandile has grown the fund from a portfolio of assets valued at R2.1 billion in 2012, to R11.8 billion as at 28 February 2017. He has over 15 years of experience in executive positions, with his entrepreneurial and forward-thinking persona propelling him into becoming one of South Africa’s leading business executives. Sandile serves as a non-executive director on KAP Industrial Holdings.

    Peter ToddLead Independent Director

    Listed Directorships: 3

    Appointed to the board on

    14 August 2014

    Peter is a qualified attorney and began his career as the senior tax manager at Arthur Anderson and Associates in Johannesburg. He joined TWS Rubin Ferguson in 1993 as a tax partner and was instrumental in listing six companies on the JSE. In 2000, Peter established Osiris International Trustees Limited in the British Virgin Islands (“BVI”) to provide international trust and corporate administrative services to global clients, as well as Drake Fund Advisors which assists with the setup and administration of hedge funds in the BVI and Cayman Islands. He held a non-executive director position at Redefine International Limited from the initial listing for some 9 years and has been involved in the property industry for many years.

    Chandra GujadhurIndependent Non-Executive Director

    Listed Directorships: 1

    Appointed to the board on

    11 March 2015

    Chandra is the Chairman and co-founder of Apex Fund Services (Mauritius) Limited. He is also a member of the Institute of Chartered of Accountants in England and Wales and an associate member of the Society of Trust and Estate Practitioners, has long standing experience in the auditing of offshore funds, fund structuring and tax planning. He was previously a member of the Accounting and Auditing task team of the Corporate Governance Committee of Mauritius and the Chairman and member of the Consultative Sub-Committee on the drawing up of the New Listing Rules of the Stock Exchange of Mauritius. He retired as a senior partner with Deloitte at the end of September 2006, after 18 years, to assume the responsibility of Managing director at Apex Mauritius. As a board member of numerous India and Africa focused funds and companies he has gained extensive experience and knowledge on key industries in India and Africa and their principal capital markets

    Members of the Board

  • Ι 49

    Ian MacleodIndependent Non-Executive Director

    Listed Directorships: 2

    Appointed to the board on

    1 July 2015

    Ian holds a BCom (Honours) in Real Estate Investment, Valuation and Development and has over 43 years of experience with financial institutions, including Standard Bank of South Africa and Nedbank with a specific focus on Real Estate Credit Risk. He has extensive knowledge of the real estate sector’s key role players, business sector and geographic nodes. Ian has managed portfolios in excess of R80 billion during changing economic cycles and managing problematic properties in economic downturns. It is Ian’s expertise and knowledge that have seen him previously hold the position of Head of Credit for Real Estate.

    Matshepo MoreIndependent Non-Executive Director

    Listed Directorships: 3

    Appointed to the board on

    7 February 2017

    Matshepo is a Chartered Accountant and holds a Certificate in Theory of Accounting and a Bachelor of Business Science in Finance. Matshepo served her articles at Deloitte, specialising in financial institutions, before being seconded to New York to handle a large asset management company. She was promoted to audit manager on her return to SA. Matshepo left Deloitte to join the PIC in 2009, where she was appointed as Finance Manager. In 2011, she was appointed CFO of the PIC, where she is responsible for the Corporation’s finances, ensuring that the PIC

    complies with the Public Finance Management Act (PFMA), which regulates financial management of all public entities in the national government and provincial governments. Matshepo is a member of the Financial Reporting Standards Council, a statutory body responsible for issuing financial reporting standards in South Africa and she also serves on the board of IRBA.

    Nomzamo RadebeNon-Executive Director

    Listed Directorships: 1

    Appointed to the board on 24 November 2017

    Nomzamo is the Chief Executive Officer of JHI Properties, one of South Africa’s leading property services companies. Her personal affiliations include registration with the South African Institute of Chartered Accountants (SAICA), and membership of the Institute of Directors of Southern Africa, the South African Property Owners Association (SAPOA), South African Council of Shopping Centres and Women’s Property Network (WPN). She is a former chief investment officer of Pareto Limited, a well-established property company and a leader in the retail property industry in South Africa. Prior to joining Pareto, Nomzamo worked in the National Treasury’s Asset and Liability Unit (within the Asset Management division) where her key responsibilities included the monitoring of the financial performance of state-owned enterprises, the facilitation of Government’s restructuring initiatives for SOE’s and the promulgation of the Auditing Profession Act. Between 2001 and 2004 she worked in the Sasol Group treasury unit as a Treasury Operations Manager, playing an important role in managing the company’s treasury risks and developing treasury management systems. She completed her articles with KPMG Inc.

    Members of the Board

  • Ι 50

    Catherine McIlraithIndependent Non-Executive Director

    Listed Directorships: 4

    Appointed to the board on 24 November 2017

    Catherine is a Mauritian citizen and holds a Bachelor of Accountancy degree from the University of the Witwatersrand, Johannesburg, South Africa and has been a member of the South African Institute of Chartered Accountants since 1992. She served her Articles at Ernst & Young in Johannesburg. She then joined the Investment Banking industry and has held senior positions in corporate and specialized finance for Ridge Corporate Finance, BoE NatWest and BoE Merchant Bank in Johannesburg. She returned to Mauritius in 2004 to join Investec Bank where she was Head of Banking until 2010. She has been an independent non-executive director and a member of various committees for several public and private companies in Mauritius including AfrAsia Bank Limited, Les Gaz Industriels Limited and The Mauritius Development Investment Trust Co Limited. She has also been a member of the Financial Reporting Council (FRC). Her current board memberships as an independent non-executive director are CIEL Limited, Anchor Capital (Mauritius) Limited and Astoria Investments Limited. Catherine is a Fellow Member of the Mauritius Institute of Directors.

    Members of the Board

  • Ι 51

    Property Portfolio

    Location: Pemba, Mozambique

    Anchor tenant:

    Bollore Africa Logistics

    Sector: Light industrial

    Land title: Leasehold

    GLA: 6 374m2

    Parking bays:

    10

    Valuation: US$6.5 M

    Location: Maputo,Mozambique

    Anchor tenant:

    Retail Masters

    Sector: Retail

    Land title:Leasehold (50+50)

    GLA: 4 764m2

    Parking bays:

    136

    Valuation: US$11.0 M

    Location: Maputo,Mozambique

    Anchor tenant:

    Vodacom

    Sector: Office

    Land title:Leasehold (50+50)

    GLA: 10 995m2

    Parking bays:

    336

    Valuation: US$49.5 M

    Location: Maputo,Mozambique

    Anchor tenant:

    KPMG, Hollard & BP

    Sector: Office

    Land title:Leasehold(50+50)

    GLA: 4 945m2

    Parking bays:

    99

    Valuation: US$19.0 M

    Location: Maputo,Mozambique

    Anchor tenant:

    Anadarko Petroleum

    Sector: Office

    Land title:Leasehold(50+50)

    GLA: 7 805m2

    Parking bays:

    185

    Valuation: US$43.1M

    Commodity House Phase 1 Hollard Building Vodacom Building

    Zimpeto Square Bollore

    * Value presented proportional to ownership interest held

    Location: Tete, Mozambique

    Anchor tenants:

    Shoprite, Choppies

    Sector: Retail

    Land title: Leasehold

    GLA: 11 571m2

    Parking bays:

    419

    Valuation: US$24.2 M

    Mall de Tete

    51

  • Ι 52

    Property Portfolio (Cont.)

    Location: Pointe aux Canonniers,Mauritius

    Anchor tenant:

    Beachcomber

    Sector: Hospitality

    Land title: Leasehold

    No of. rooms:

    284

    Valuation: US$27.2 M*

    Location: Pointe Aux Piments, Mauritius

    Anchor tenant:

    Beachcomber

    Sector: Hospitality

    Land title: Leasehold

    No of. rooms:

    294

    Valuation: US$38.3 M*

    Location: Grand Baie, Mauritius

    Anchor tenant:

    Beachcomber

    Sector: Hospitality

    Land title: Leasehold

    No of. rooms:

    238

    Valuation: US$26.0 M*

    Mauricia Resort & Spa (44.4% ownership*) Victoria Resort & Spa (44.4% ownership*) Canonnier Resort & Spa (44.4% ownership*)

    * Value presented proportional to ownership interest held

    Location: Tete, Mozambique

    Anchor tenants:

    Vale and Barloworld

    Sector:Corporate Residential

    Land title Leasehold

    No of units:

    83 x 3 bed villas40 x 2 bed apartments

    Valuation: US$34.3 M

    VDE Housing Estate

    Location: Ebene, Mauritius

    Anchor tenant:

    Barclays Bank

    Sector: Office

    Land title: Leasehold

    GLA: 7 700m2

    Parking bays:

    150

    Valuation: US$14.6 M

    Barclays House

    Location: Bel Ombre, Mauritius

    Anchor tenant:

    Lux Island Resorts

    Sector: Hospitality

    Land title: Leasehold

    No of. rooms:

    214

    Valuation: US$45.4 M

    Tamassa Resort

    52

  • Ι 53

    Property Portfolio (Cont.)

    Location: Nairobi, Kenya

    Anchor tenant:

    Imperial Health Sciences

    Sector: Light Industrial

    Land title: Leasehold

    GLA: 13 560m2

    Parking bays:

    N/A

    Valuation: US$18.4 M

    Location: Naivasha, Kenya

    Anchor tenant:

    Tuskys

    Sector: Retail

    Land title: Leasehold

    GLA: 6 615m2 (100%)

    Parking bays:

    250

    Valuation: US$5.9 M*

    Buffalo Mall (50.0% ownership*) Imperial Warehouse

    * Value presented proportional to ownership interest held

    Location: Casablanca,Morocco

    Anchor tenants:

    Carrefour, M&S, H&M, LC Waikiki

    Sector: Retail

    Land title:Freehold

    GLA: 30 879m2

    Parking bays:

    1 148

    Valuation: US$105.6 M

    Anfa Place Shopping Center

    Location: Ndola, Zambia

    Anchor tenant:

    Shoprite

    Sector: Retail

    Land title: Leasehold

    GLA: 12 142m2 (100%)

    Parking bays:

    180

    Valuation: US$12.5 M*

    Kafubu Mall (50% ownership*)

    Location: Lusaka, Zambia

    Anchor tenant:

    Shoprite, Game

    Sector: Retail

    Land title: Leasehold

    GLA: 26 512m2 (100%)

    Parking bays:

    1300

    Valuation: US$39.5 M*

    Location: Kitwe, Zambia

    Anchor tenant:

    Shoprite, Game, Pick n Pay

    Sector: Retail

    Land title: Freehold

    GLA: 28 230m2 (100%)

    Parking bays:

    670

    Valuation: US$36.8 M*

    Mukuba Mall (50% ownership*) Cosmopolitan Mall (50% ownership*)

    53

  • This report has been issued and approved for use by you 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 orany rights attaching to such securities or financial instruments.

    This report is intended for use by professional and business investors only.

    The information and opinions have been compiled from reliable sources but neither Grit Real Estate Income Group (“Grit”), nor its directors, officers or employees accept any liability for loss arising from the use of thisinformation or the accuracy of it. Any forecasts, opinions or estimates constitute assessments given at the date of this report only.

    There can be no reliance on the fact that future results or events will be consistent with past performances or the results, opinions, forecasts or estimates provided in this report. The past performance and the opinions andestimates given in this report, expressed or implied, should not be seen as a guarantee of future performance. This report is subject to change and its accuracy is not guaranteed. The value of securities can rise or falldepending on currency exchange fluctuations which can affect the value positively or negatively.

    Investors should seek professional advice of whether to invest in the securities discussed in this report

    Grit securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold, directly or indirectly, in the United States of America,unless they have been registered under the Act or the investor has exemption from the Securities Act. Grit does not intend to register its securities under the Securities Act or to conduct a public offering of the securities inthe United States of America. Should securities be offered in the future, in the United States of America, any offering of securities will be made only to qualified institutional buyers in accordance with Rule 144 A under theSecurities Act or in other transactions exempt from, or not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. Outside the United States of America, any future offeringof securities will be made in accordance with applicable regulations and under securities legislation.

    In member states of the European Economic Area (“EEA”) which have implemented the Prospectus Directive (each, a “Relevant Member State”), this presentation is directed exclusively at persons who are qualified investorswithin the meaning of the Prospectus Directive (“Qualified Investors”). For these purposes, the expression Prospectus Directive means Directive 2003/71/EC (and amendments thereto, including Directive 2010/73/EU, to theextent implemented in a Relevant Member State), and includes any relevant implementing measure in the Relevant Member State.

    In the United Kingdom this presentation is only being distributed to, and is only directed at, Qualified Investors who are (i) investment professionals falling within Article 19(5) of the UK Financial Services and Markets Act2000 (Financial Promotion) Order 2005 (the “Order”); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order, or (iii) other persons to whom it may otherwise be lawfully communicated (all such personstogether being referred to as “relevant persons”). Persons who do not fall within the category of relevant persons should not take any action on the basis of this presentation and should not act or rely on it.

    Nothing in this presentation should be viewed, or construed, as "advice", as that term is used in the South African Financial Markets Act, 2012, and/or Financial Advisory and Intermediary Services Act, 2002 and/or theequivalent legislation in the United States of America.

    This publication is confidential for the information of the addressee only (or the audience) and may not be reproduced in whole or in part, copies circulated or distributed to another party.

    Disclaimer

    Ι 54