SPEAR REIT LIMITED - Pre-Close Investor Presentation and Trading Update

SPEAR REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2015/407237/06)
Share Code: SEA
ISIN: ZAE000228995
LEI: 378900F76170CCB33C50
Approved as a REIT by the JSE
('Spear' or 'the Company')

PRE-CLOSE INVESTOR PRESENTATION AND TRADING UPDATE


Shareholders are referred to the announcement published on SENS on 17 August 2021,
advising that Spear's pre-close investor presentation and trading update in relation to the six-
month period ended 30 August 2021, will be held at 12h00 SAST today, Tuesday, 31 August
2021, via a virtual presentation.


Shareholders are reminded that the presentation details are as follows:
   -    View and listen mode
   -    Link: https://youtu.be/RAnja0QJN_g

   -    Presentation slides will be made available on Spear's website shortly before the
        broadcast of the presentation under investor relations / financial results / presentations,
        at the following link: https://spearprop.co.za/investor-relations/
   -    Questions may be e-mailed during the presentation to: info@spearprop.co.za


Salient details included in the pre-close investor presentation and trading update are as
follows:


    '   Amidst tough trading conditions the portfolio has navigated the interim period with
        forecast aligned collections and occupancy rates. Portoflio performance has been
        sound in the light of the ongoing Covid-19 operating environment;
    '   95.06% of revenue billed has been collected (94.15% compared to budget);
    '   Spear has R150 million of cash availablity, no going concern risks, solvency &
        liquidity tests have been passed;

    '   Average cost of debt reduced by 18 bps during the interim period to 7.08% and R280
        million of debt was refinanced during the interim period;

    '   a 94% tenant retention rate on lease renewals during interim period on circa
        79 826m2 of space that came up for renewal;

    '   Year-to-date July 2021, rental reversion achieved a combined negative 5.79% across
        all sectors, excluding hospitality.

    '   New fixed lease at 15 on Orange commenced 15 August 2021 with a positive rental
        reversion of 221.24%;

    '   Total Potrfolio rental reversion positive 24.52% (Office, Industrial, Retail &
        Hospitality);

    '   TNAV as at the end of July 2021 is R11.86, being a 3.13% increase from prior year
        end;

    '   Loan to Value ('LTV') as at the end of July 2021 is 46.26% and no significant total
        portfolio fair value decrease is expected at interim period end;
    '   Interest cover as end July 2021 is 2.15x from 2.11x at prior year end;
    '   A interim distribution will be made and announced in October 2021 interim results
        announcement; and

    '   Payout ratio to be within a range of 80% to 95% of distributable income per share
        (DIPS).

Cape Town
31 August 2021

Sponsor
PSG Capital

Date: 31-08-2021 08:00:00

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