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f or the period ended 31 August 2013

f or the period ended 31 August 2013. Proceedings. Introduction Highlights Sandile Nomvete Strategy Unitholder profile Financial review Capital management Bronwyn Corbett Consolidated property portfolio Capex Prospects Sandile Nomvete. Introduction. Introduction to Delta.

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f or the period ended 31 August 2013

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  1. for the period ended 31 August 2013
  2. Proceedings Introduction Highlights Sandile Nomvete Strategy Unitholder profile Financial review Capital management Bronwyn Corbett Consolidated property portfolio Capex Prospects Sandile Nomvete

  3. Introduction

  4. Introduction to Delta Black managed property loan stock company Successfully raised R1.7 billion in equity post listing Defensive portfolio at an average value of R98.8 million Ratio of government to non-government (GLA) = 56:44 Total investment portfolio of R4.8 billion (49 properties) Market capitalisation of R3.0 billion Constituent of the FTSE-JSE SA listed property index (J253) Achieved a Level 2BEE property charter rating

  5. Highlights

  6. Highlights for the period under review Distribution achieved of 32.51 cents per linked unit, ahead of forecast In line to meet year end distribution Portfolio occupancy of 94.7% Attractive forward funding rates of 7.7% Leases renewed for 39 533 m² (R244.7 million) Yield enhancing acquisitions R2.7 billion (average yield of 9.7%)

  7. Strategy

  8. Strategy Short-term: Achieved interim distribution Sweated current portfolio (lease renewals and uplift on vacancies) Transfer of all new acquisitions Bulked up asset management team Included 3 further property managers Maintained A/B grade fund – new acquisitions On track to achieve distribution growth and February 2014 distribution
  9. Strategy | continued Medium-term: Grew portfolio to R4.8 billion: Yield enhancing assets Increased SARS portfolio Diversification of portfolio: (60/40 government/ non government) New acquisitions Parastatal Industrial
  10. Organogram CEOSandile Nomvete (ExecDep. & PropDev. Prog) CFO / COOBronwyn Corbett (CA (SA)) Asset Management Finance Legal Taryn Harris (BA Hons, LLB) Senior AM Otis Tshabalala Andre Janari Senior Ops AM Trevor Matthews Group Financial ManagerGreg Booyens (CA (SA)) Ops AM Sandra Mqina Ojong Nso Godfrey Ndlovu Finance andCompliance ManagerStefan Smit (CA (SA)) Bookkeeper Rochelle Mumbengegwi (Bcom Acc)
  11. Unitholder profile

  12. Financial review

  13. Financial highlights Converted to a REIT GCR Credit Rating achieved Raised R190 million 6 month commercial paper Long-term: BBB+ Short-term: A2 Introduced Standard Bank as debt funders Reduced cost of funding to 7.50% Achieved 5 year fixed funding at 7.87%
  14. Financial overview
  15. Distributable income statement * Includes property management fees historically excluded
  16. Segmental analysis
  17. Net property income analysis

  18. Capital management

  19. Group debt structure Maturity date Interest rate Debt facility maturity profile 7.09% 7.09% 7.22% 7.87% 7.88% # 7.00% 7.04% 7.55% 7.01% 7.74% 7.18% 7.55% Variable rate debt Fixed rate debt # Fixed rate expires Feb 2016

  20. Consolidated property portfolio

  21. Delta at a glance * OG – Office government
  22. Consolidated property portfolio analysis BUILDING GRADE: GLA GEOGRAPHIC PROFILE: GLA SECTORAL PROFILE: GLA BUILDING GRADE: RENTAL GEOGRAPHIC PROFILE: RENTAL SECTORAL PROFILE: RENTAL
  23. Acquisitions * OG – Office government
  24. Acquisitions
  25. Leasing Portfolio vacancy at 31 August 2013: 5.3% (GLA) Bad debts of 0% at half year GLA renewed: 39 533 m² Lease expiry (GLA) >28/02/2018: 79% Lease expiry (rental) > 28/02/2018: 81% Average rate/ m² achieved: R82.04 Average rental escalation achieved: 8.34% New leases
  26. Consolidated property portfolio analysis Incremental GLA Cumulative GLA Incremental GLA Cumulative GLA
  27. Consolidated property portfolio analysis Incremental rental income Cumulative GLA Incremental rental income Cumulative rental income
  28. Consolidated property portfolio analysis Rental escalation Sectoral Average
  29. Consolidated property portfolio analysis Rental Sectoral Overall

  30. Capex

  31. Capex projects underway SARS KIMBERLEY: Waterproofing project Roof before Salient features Building area: 2 950 m² Location: Kimberley Anchor tenant: SARS Current gross rental/m²: R111.33 Renovation Capexcost: R1.2 million Completion date: August 2013 Lease term: 5 years – 30 June 2015 after
  32. Capex projects underway NPA: office refurbishment: R33.5 million WB Centre: waterproofing projectandoffice refurbishment: R3.8 million Salient features Building area: 10 5525 m² Location: Cape Town Anchor tenant: NPA Current gross rental/m²: R134.57 (incl parking) Lease term: 9 years, 11 months– expiry 31 March 2023 Building will be Grade A after refurbishment Salient features Building area: 7 425 m² Location: Kimberley Anchor tenant: Woolies (1 738 m²) Jetmart (1 500 m²) Current gross rental/m²: R76.31 SARS Randburg: extra parking: R11.5 million Tivoli Building: office refurbishment:R3.0 million Salient features Building area: 8 496 m² Location: Randburg Anchor tenant: SARS Current gross rental/m²: R79.58 Present parking: + 237 bays, to add 167 bays Parking ratio will increase to 4 bays/100m² Lease expiry: 28 February 2017 Salient features Building area: 2 075 m² Location: Klerksdorp Anchor tenant: DPW (DHA) Current gross rental/m²: R86.55 New gross rental/m²: R93.48 (incl parking) Lease expiry: 30 September 2018

  33. Prospects

  34. Prospects Distribution growth Availability of yield enhancing, quality assets Value creation in existing assets Constituent of the FTSE-JSE SA listed property index REIT approval Liquidity of the fund Attractive funding rates from DCM programme Capitalise on BEE status (lease renewals)

  35. Q & A

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