SA REIT ratios
for the year ended 31 March 2021

SA REIT FUNDS FROM OPERATIONS (SA REIT FFO)

Group  2021 
Rm
 
2020 
Rm 
Profit/(loss) per IFRS statement of comprehensive income attributable to the parent  584  (103)
Adjusted for: 
Accounting/specific: 
Fair value adjustments to:  1 079  2 061 
   Investment property  854  1 297 
   Debt and equity instruments held at fair value through profit or loss  (289) 792 
   Depreciation and amortisation of intangible assets 
   Impairment of goodwill or the recognition of a bargain purchase gain  –  17 
   Asset impairments (excluding goodwill) and reversals of impairment  13  13 
   Impact of asset reclassifications and asset transfers on profit or loss  314  – 
   Deferred tax movement recognised in profit or loss  18  11 
   Straight-lining operating lease adjustment  67  (55)
   Adjustments to dividends from equity interests held  98  (19)
Adjustments arising from investing: 
Gains or losses on disposal of:  46 
   Investment property and property, plant and equipment  (2)
   Debt and equity instruments  48  – 
Foreign exchange and hedging items:  (251) (96)
   Fair value adjustments on derivative financial instruments employed solely for hedging purposes  49  (113)
   Reclassified foreign currency translation reserve upon disposal of a foreign operation  (330) – 
   Adjustments to amounts recognised in profit or loss relating to derivative financial instruments  39  (48)
   Foreign exchange gains or losses relating to capital items – realised and unrealised  (9) 65 
Other adjustments:  (216) (64)
   Non-controlling interests in respect of the above adjustments  (216) (66)
   Antecedent earnings adjustment  – 
SA REIT FFO  1 242  1 807 
Number of shares outstanding at end of year (net of treasury shares) 956 226 628  956 226 628 
SA REIT FFO cents per share  129.89  188.97 
Company-specific adjustments  (22) (16)
Depreciation  (4) (5)
Deferred tax  (18) (11)
Distributable income  1 220  1 792 
Distributable income per share (cents) 127.58  187.30 

SA REIT NAV

2021 
Rm 
2020 
Rm 
Reported NAV attributable to the parent  17 361 17 542
Adjustments: 
   Dividend declared  (966) (461)
   Fair value of certain derivative financial instruments  28  308 
   Goodwill and intangible assets  (3) (5)
SA REIT NAV  16 420  17 384 
Shares outstanding 
Number of shares in issue at year-end (net of treasury shares) 956 226 628  956 226 628 
Dilutive number of shares in issue  956 226 628  956 226 628 
SA REIT NAV per share   17.17  18.18 

SA REIT COST-TO-INCOME RATIO

Southern Africa portfolio 2021 
Rm 
2020 
Rm 
Expenses
Operating expenses per IFRS income statement (includes municipal expenses) 870  807 
Administrative expenses per IFRS income statement 154  161 
Excluding:    
  Depreciation expense in relation to property, plant and equipment of an administrative nature and amortisation expense in respect of intangible assets (5) (4)
Operating costs 1 019  964 
Rental income
Contractual rental income per IFRS income statement (excluding straight-lining) 1 501  1 570 
Utility and operating recoveries per IFRS income statement 598  566 
Gross rental income 2 099  2 136 
SA REIT cost-to-income ratio(1) 48.5%  45.1% 
Spain portfolio  2021 
Rm 
2020 
Rm 
Expenses 
Operating expenses per IFRS income statement (includes municipal expenses) 384   323  
Administrative expenses per IFRS income statement  132   118  
Operating costs  516   441  
Rental income 
Contractual rental income per IFRS income statement (excluding straight-lining) 740   1 065  
Utility and operating recoveries per IFRS income statement  278   245  
Gross rental income  1 018   1 310  
SA REIT cost-to-income ratio(1)  50.7%   33.7%  
(1) 2021 SA REIT cost-to-income ratio includes the impact of rent concessions granted to tenants (in Southern Africa and Spain), resulting in a higher cost-to-income ratio. The cost-to-incomes ratios for 2021 excluding the impact of rent concessions would be as follows: Southern Africa 45.4% and Spain 37.5%.

SA REIT ADMINISTRATIVE COST-TO-INCOME RATIO

Southern Africa portfolio 2021
Rm
2020
Rm
Administrative costs
Administrative expenses as per IFRS income statement 154 161
Rental income
Contractual rental income per IFRS income statement (excluding straight-lining) 1 501 1 570
Utility and operating recoveries per IFRS income statement 598 566
Gross rental income 2 099 2 136
SA REIT administrative cost-to-income ratio(2)(3) 7.3 7.5
Spain portfolio  2021 
Rm 
2020 
Rm 
Administrative costs 
Administrative expenses as per IFRS income statement  132  118 
Rental income 
Contractual rental income per IFRS income statement (excluding straight-lining) 740  1 065 
Utility and operating recoveries per IFRS income statement  278  245 
Gross rental income  1 018  1 310 
SA REIT administrative cost-to-income ratio(2)(3)   13.0  9.0 
(2) 2021 SA REIT administrative cost-to-income ratio includes the impact of rent concessions granted to tenants (in Southern Africa and Spain), resulting in a higher administrative cost-to-income ratio. The 2021 administrative cost-to-incomes ratios excluding the impact of rent concessions would be as follows: Southern Africa 6.9% and Spain 9.6%.
(3) SA REIT administrative cost-to-income ratio for the Southern Africa portfolio (2021 and 2020) is inflated since the numerator includes administrative overheads related to executive remuneration (in South Africa) that benefits both the Southern Africa and Spain portfolios (while the denominator in the ratio includes gross rental income from the Southern Africa portfolio only).

SA REIT GLA VACANCY – SOUTHERN AFRICA

2021  
m2 
2020  
m2 
GLA of vacant space  38 123    34 017  
GLA of total property portfolio  958 001   944 220  
SA REIT GLA vacancy rate  4.0% 3.6%

SA REIT GLA VACANCY – SPAIN

2021  
m2 
2020  
m2 
GLA of vacant space  6 186  5 647 
GLA of total property portfolio  329 118  330 848 
SA REIT GLA vacancy rate  1.9%  1.7% 

SA REIT COST OF DEBT

2021  ZAR 
EUR 
GBP 
Variable interest rate borrowings 
Floating reference rate plus weighted average margin  5.6  0.8  N/A 
Fixed interest rate borrowings 
Weighted average fixed rate  0.0  0.9  N/A 
Pre-adjusted weighted average cost of debt  5.6  1.7  N/A 
Adjustments: 
   Impact of interest rate derivatives  2.6  0.2  N/A 
   Amortised transaction costs imputed into the effective interest rate  0.1  0.4  N/A 
SA REIT all-in weighted average cost of debt(1)  8.3  2.3  N/A 
2020  ZAR 
EUR 
GBP 
Variable interest rate borrowings 
Floating reference rate plus weighted average margin  7.3  1.1  2.9 
Fixed interest rate borrowings 
Weighted average fixed rate  0.0  0.7  0.0 
Pre-adjusted weighted average cost of debt   7.3  1.8  2.9 
Adjustments: 
   Impact of interest rate derivatives  1.5  0.1  0.6 
   Amortised transaction costs imputed into the effective interest rate  0.0  0.4  0.0 
SA REIT all-in weighted average cost of debt (1)  8.8  2.3  3.5 
(1) Excludes impact of CCIRS.

SA REIT LTV

2021 
Rm 
2020 
Rm 
Gross debt  15 404  18 522 
Less: 
   Cash and cash equivalents  (987) (1 414)
      Cash and cash equivalents balance sheet  (1 003) (1 559)
      Less restricted cash  16  145 
Add/less: 
   Net derivative financial instruments liability/(asset) 365  1 049 
      Forward exchange contracts  (212) 164 
      CCIRS  337  740 
      Interest rate swaps  240  145 
Net debt  14 782  18 157 
Total assets – per statement of financial position  35 992  40 056 
Less: 
   Cash and cash equivalents  (1 003) (1 559)
   Derivative financial assets:  (214) (11)
         Forward exchange contracts  (212) – 
         Interest rate swaps  (2) (11)
   Goodwill and intangible assets  (3) (5)
   Trade and other receivables  (391) (314)
Carrying amount of property-related assets  34 381  38 167 
SA REIT LTV %  43.0  47.6