Attacq Limited (ATT) Earnings Call Transcript & Summary

Good morning, ladies and gents, welcome at our results presentation for the June 2020 results. We are physically at Maxwell Office Park in the business center. I've got a number of my colleagues sitting next to me. And then I'm led to believe that we are close to 150 people on the call. So welcome to all of you. If you look at 2020 financial year, it was definitely a challenge. And if I -- if -- and maybe we are challenged is even in an understatement. And the challenge was sitting in the last quarter of a financial year. If you look at 2020 calendar year, we're definitely not out of a challenge. And part of this challenge is for uncertainty. And I've got a saying that uncertainty creates anxiety. And that anxiety we have definitely experienced in our shops, in our tenant base. I think, globally, if you look at share prices, share price doesn't like uncertainty. And the question is how have we managed that uncertainty? How have we managed the anxiety? That's why if you look at today's presentation, it's similar to what we had in the past. However, there's more detailed information on operational matters because that's where the uncertainty set. And there's also more information on some of the financial matters. For instance, there's a big focus on liquidity. There's also quite a focus on this concept of tenant relief. To some extent, it's a new concept. We haven't had the concept 6 months ago. We also haven't had the concept of essential services, nonessential services. So between Jackie and Raj, they will unpack quite a lot of detail on tenant relief because at the end of the day, if you look at our financial performance from a distributable earnings viewpoint from a SA portfolio, it was quite or materially negative impacted by our tenant relief. If we can go to the next slide, if you look at the agenda, like I said, it's similar to what we had in the past. I'll give a high-level overview. Then, I'm going to hand over to Jackie to talk about the SA portfolio. She's going to hand over to Giles talking about the developments. Pete, our Investment Officer, will talk about MAS and then Rest of Africa. And then Raj will spend quite a lot of time on our financial results. So I would say a focus of today's presentation will be on the SA portfolio, and it will then also be on our financial results. I will then come back to have a conclusion on confirming our focus areas for the next, I would say, 6 months to a year and even perhaps 2 years. So if we go into the performance summary, what you will notice what we've done here is we actually took highlights, and I'm going to say low lights from the SENS announcement, and we've put it into the summary page. I mean all of us understand the difficult macroeconomic we are operating in. So we're not going to spend time on that. We're just going to spend time on what was the impact of that on a tax financial results for June 2020. So the first point is we have paid a dividend in the first 6 months. That dividend was ZAR 0.45 per share. We are not declaring, and therefore, not paying a dividend for the second 6 months. Raj will unpack the, call it, the REIT requirements relating to the fact that we're not paying a dividend. The reality is we tick all the boxes from a 75% distributable earnings -- was minimum 75% from a distributable earnings viewpoint. And also from a tax leakage viewpoint, Raj will touch on that. If you look at core DE, it declined 15% for the full year. And the full year number, it's ZAR 0.731 per share. Then if you look at the payout ratio, first 6 months, we had a payout ratio of ZAR 0.904 per share -- or 90.4%. That is on the back of ZAR 0.45 per share. And then for the total year, we've got a 61.6% payout ratio. And the reason why we are holding back some of our cash is to maintain liquidity in our balance sheet. And -- like I said this, Raj has a slide specifically on liquidity. Liquidity for us, as a management team, was quite a focus point in the last 6 months. If you look at our NAV per share, it reduced to 25.8% to ZAR 16.45. Again, Raj will unpack the detail, but just maybe high level explaining that reduction. In nominal terms, it's just over ZAR 4 billion that our NAV has reduced. And that ZAR 4 billion, I'm going to unpack it high level. But like I said, both Jackie, Pete and Raj will talk to the detail around that. But that ZAR 4 billion sits in reduced investment property value for the SA portfolio. That reduced SA property portfolio on a like-for-like basis, it's 8.6%. To quantify that, it's about ZAR 1.7 billion. The next negative asset value, which had a impact on NAV, was ZAR 1.3 billion impairment in the MAS value. And the reason for that impairment is, in the past, we used to account for MAS on a net equity accounting method. And now we had to do the impairment test and due to the fact that MAS is currently trading at 56% to book value or you can say it's trading at a 44% discount to NAV, that 44% roughly equates to the ZAR 1.3 billion impairment that we took. So it's a, call it, a disjoint between NAV and the share price, that's the ZAR 1.3 billion. Then what we had to do, we had to mark-to-market our swaps or our interest rate hedging. And then on the back of a lower repo rate and a prime rate, the accounting impact of that was an impairment of just over ZAR 500 million, which is ZAR 0.5 billion, which is quite a substantial amount. But the interest rate hedging is on the back of our policy where we said that we want to fix a certain percentage of our interest rates for -- if interest rates increase. So it's ZAR 1.7 billion investment properties, ZAR 1.3 billion MAS, ZAR 500 million mark-to-market. So that's ZAR 3.5 billion, and the remaining ZAR 500 million sits between the intangible assets that we've written down to 0. The intangible assets and goodwill that we've accounted for just before listing when we've internalized the property and asset manager. So that we've now accounted for at a 0 value. It's also impairments in Rest of Africa, Pete will talk to that. And then, as you know, we have exited Nieuwtown. So we've written Nieuwtown down to a value of ZAR 80 million and the ZAR 80 million was the price at which we've exited Nieuwtown. So between intangible assets for Rest of Africa and Nieuwtown, but to some extent, is the ZAR 500 million and when Raj will say to you, but there's also retained earnings, and there's also dividends. But if you square all of this on a net-net basis, NAV reduced to ZAR 4 billion. Then on the back of a reduced asset value, our gearing increased to 45.7%. We are definitely focusing on that gearing ratio. And then correlated to the gearing ratio is our interest cover ratio and both Raj and myself will talk to that. I'll talk to that at the back end of our presentation. If you look at our covenants on the gearing ratio, it's a 60% from a REIT regulatory viewpoint. And then also from a bank funding viewpoint, it's a 60%. From a covenant viewpoint, we are well within the covenants when it comes to our gearing ratio. A big focus for us is that second bullet point talks about liquidity. And I always say liquidity, it's not only your -- how much cash you are generating during a period that is one measurement of liquidity is how much cash do you generate. The second measurement of liquidity is your opening balance. And then your third measurement of liquidity is, how much debt do you have to settle within the next 12 months. And there, for us, as a management, that was a big focus in the initial stages, let's say, after the lockdown, March, April, May, June, is to make sure that we are comfortable with the amount of debt that's going to mature within the next 12 months. So Raj sometimes use with soft rollover. So we've negotiated soft rollovers with the banks. And I'm glad to say that we don't have any debt that's going to mature between now and the end of September. So we've negotiated, I think, ZAR 5.7 billion, ZAR 5.9 billion of debt to, let's say, October 2021 and thereafter. We've completed 8 buildings. And as at the end of June, we were in construction of another 4 buildings. Giles will talk to that. I've already chattered to what we have done on the MAS valuation. And then we've also exited over the last 18 months, we've exited 2 of our assets in the Rest of Africa portfolio, 1 asset in Ghana and then another asset in Zambia. And then from an ESG viewpoint, environmental, social governance rating viewpoint, we have again improved our rating. Last year, we were 4.1. And now we are 4.2. And like we've made the statement that, that is one of the best ESG ratings in the REIT sector. So if you stand back and if you ask a question, were our results within expectation? Then my immediate answer will be what was the expectation. And maybe to unpack my counterquestion. And we, as a management team, sometimes tongue in the check refers to a BC world in the AC-DC world. The BC world is the before COVID world. And in the AC-DC world is after COVID, during COVID. So for us, the BC world was when we've announced our December 2019 results. That was the first week in March. At that point in time, we said our distributable earnings guidance is not 8% to 10% anymore. It's now a minimum of 10%. And we were bullish, but we were also realistic. So if you ask me, compare the June 2020 results with the December 2020 results, when I'd say it's definitely not what we've expected. Definitely, definitely not. But the reality is none of us have also expected the financial impact of COVID. If you ask you a question, is our June 2020 results in line with what we've expected, let's say, in June 2020? I would say, yes. It was in line. We've definitely expected lower investment property values. And I think some of the numbers quoted was between 7.5%, 10% and 15%. We came in at 8.6%. We've definitely expected impairment on the MAS share because MAS was trading at such a discount to its NAV. The mark-to-market, it's just a function of what the exchange rates or interest rates are doing. Intangible assets, like I said, we've written down to 0. At that point in time, we've already exited Nieuwtown. So we took an impairment on Nieuwtown. And then I will unpack the impact on the distributable earnings. So to some extent, coming back to the word expectations, I'm of opinion that our balance sheet is in line with the expectations, let's say, after COVID has happened. If we go to the next slide, that talks to the social impact. What we have done here, and I'm not going to read all the statements we've listed here. What COVID has definitely done for all of us fundamentally, it has changed the focus from shareholders to stakeholders. We, as a company, must look after all our stakeholders and not only one specific stakeholder. And that's exactly what we have done. If we talk about shoppers, Michael has provided me the numbers earlier today. But if you look at the shoppers, April 2019, we had 4.8 million shoppers for that specific month going through our malls, 4.8 million. That was April. 11 months later in March, we had only 900,000 or just over 900,000. Then fortunately, for us, we're getting closer to the end of a DC world, of a during COVID world. So for August 2020, our numbers are back to 3.2 million. We're not yet on the 4.8 million in the BC world or pre-COVID or before COVID world. But we're on 3.2 million. Jackie will unpack that in a lot of detail because also what we have experienced is there's a higher spend per head. So yes, there's a reduction in footfall, but it's, to some extent, also made up by your spend per head. If you look at the tenants, Raj will unpack because the tenants are definitely one of our key stakeholders. So Raj -- between Raj and Jackie, they will unpack the tenant relief that we have allocated to our tenants, making sure that they, I sometimes use the word storm, that they survive the storm that we've got a sustainable tenant base. I mean property is a long-term asset class. So there was a huge focus from Jackie and the team, Michael and Debbie, on our tenants, making sure also from a health and safety viewpoint that we comply with all the regulatory requirements. I mean, the regulatory requirements also changed, I would say, on a weekly basis. So there's a big emphasis on operational matters and then also coming back to tenant relief on financial matters. From a governance viewpoint, we're quite early in the process. I think we were still on the road show down in Cape Town on December road show when we've implemented the concept of a task team. Initially, we've met Monday, Wednesdays, Fridays. We are currently meeting only on Wednesdays. And again, it's, to some extent, a think tank debating, agreeing, sometimes disagreeing on what we should do, what is best for our tenants and what is best for our malls. Suppliers, brokers, service providers, again, to some extent, also include our colleagues. So we have paid all of them the full amount during the COVID phase. We have not, let's say, negotiated discounts with suppliers. We have not discounted salaries. So we've been acting as a -- of a good corporate citizen. And we've paid all our suppliers, all our staff members and all our service providers. And then from a community viewpoint, the marketing teams did a lot of work, excellent effort went into that. I mean there's a graph or the diagram on the right-hand side. At the end, we've touched 8,000 or more than 8,000 beneficiaries across the different communities. Also, what we have experienced is the diversity of our portfolio and the diversity talks not only to the asset class, it also talks about underlying tenant, if it's essential, not essential. It also talks to the location of a property. And Jackie will go into that. And it was quite interesting if you look at MooiRivier Malls, let's say, behavior of a shopping or the shoppers and then the financial impact on us as a landlord and the tenants. If you look at MooiRivier Mall versus Eikestad versus a Garden Route Mall, the underlying, let's say, shopping prints is different. So that was quite an interesting observation during this COVID period. If I go on to the next slide, this is our strategic KPIs. I've already touched on some of them in my opening slide. I've touched on the core distributable earnings per share. Like I said, and I'll go into that in the next slide. There was a reduction on a year -- annual basis of 10.5%, and it's predominantly sitting in the SA portfolio. And again, it's a function of a tenant relief. We've paid ZAR 0.45 per share interim dividend. We are not declaring a final dividend. And the reason for that is we want to maintain some equity in the capital structure. We've completed 8 properties. Giles will talk to that. But if you look at the 42,000 GLA, that is our effective share, and Deloitte's holding is, give or take, 50% of that 42,000. And the reason why we measured Deloitte's on 21,000, it's because we only own 50% of that holding. So Deloitte's on its own was 42,000, but our share, it's 21,000. Raj will go into a lot of detail on the interest cover ratio and in the gearing. Jackie will talk to the trading densities. Those trading densities numbers of over 12 months ended at the reporting date. So it's the 12 months ended at end of June. And then if you look below that end of December, end of June 2019, and you will notice that December 2019, that's my reference to the before COVID world to the BC world, we were sitting in a percentage that exceeded inflation. But unfortunately, now we're at a percentage that's negative or below inflation. The 4.2 rating, I've already touched on that. I think that rating is an independent rating, and they've issued the rating about 3, 4, 5 weeks ago. Like I said, last year, we were on a 4.1, and this year, we're on a 4.2. This is my final slide, and then I'm going to hand over to Jackie. This is just a summary of our core distributable earnings. I've already touched on the minus 10.5%. And if you look at the right-hand column, you will see that the biggest chain sit in the SA portfolio of close to minus 20%. If you quantify the difference between the ZAR 0.59 per share and ZAR 0.474 per share, it's about ZAR 100 million. Like I've mentioned, Raj will go into the detail on the tenant relief. The tenant relief is much more than the ZAR 100 million. So if it wasn't for COVID, we would have definitely had a positive growth in our distributable earnings. A big focus for us and our peers and the industry is that definition around core distributable earnings and what is sustainable. And then I think the second question is what is your payout ratio? Like we said, for the December numbers, we've paid out close to 90%. For the second 6 months, our payout ratio is 0%. So therefore, our annual payout ratio is 60%, but that's definitely a focus from a regulatory viewpoint and then also from a viewpoint on how do you maintain liquidity in your balance sheet. So I'm going to hand over to Jackie, and then I'll come back on the way forward. So thank you, Jackie.

Good morning, everyone. Sure, it's certainly been a roller coaster year. And of the results, in March, we embarked on the uncertain world of the COVID pandemic. We had a lot of questions as a asset and property management team. What is health and safety regulations be? What is the behavior going to be? When are people going to return to work? How will shoppers react? What does physical and social distancing mean? What is the timing of the debt and the impact in our trading densities in our businesses that we trade in? So we had a lot of questions. Just want to get to the slide, there we go. And for us Attacq management, what was our focus in approaching this? And also, what will be our philosophy going forward? We said stick to the fundamentals of our properties, stick to maintaining the properties, make sure that we keep and up older properties. You'll notice in the SENS, we said our property management increased, and I'm going to say the word only increased by 2.6%, with the major impact of the municipality rates being up at 7%. And our teams and operational teams did a remarkable world job at really containing our operational costs to make sure that the impact of the uncertainty is buffered by expenses in our portfolio. And then also the economy of scale that we're starting to realize in the Waterfall Precinct is really starting to filter through in our cost basis. The next thing, as a team, we said we have to be sustainable, we have to provide sustainable community spaces in our Precinct. Very important, it's not just about the environment, but it's between the relationship between tenant and the landlord. What is a sustainable lease? What is a sustainable relationship? And will that tenant be able to try through all of this? And what is the assistance that a landlord can play in these uncertain times. Now let's touch on portfolio and tenant diversification and the strength of it. We have definitely seen in our collection rates where certain of our tenants that was either much harder by COVID pandemic, other tenants thrive. And that balance throughout our portfolio has really helped us with our collection rates. Health and safety of our shoppers remain top priority. I must commend operational teams that had to wake up at 4:00 in the morning, be at the mall at 5 to make sure that our premises are ready for our shoppers before our levels of lockdowns were embarked or imposed. About 2 years ago, we started with a client experience journey where we designed and developed what do we call the Attacq client experience. Our aim to ensure that in every touch point in Attacq, we will provide our clients and our shoppers with a remarkable experience. This means, in Attacq, we listen to our clients, we collaborate with our clients, we offer a multichannel approach, and we innovate. And we've definitely seen with COVID, we cannot think out of the box because there was no box. We all face something of the unknown, and we really had to sit back and think, how would we approach our clients and our tenants and get shoppers back into the mall. With this, we said we need values to be able to deliver on our client-centric approach. We said operational sustainability with Giles and how they build their premises is really important to drive cost of occupancy for our tenants down and our clients. Our community focus being a landlord tenant relationship, being this community that we help through our Attacq Cares campaign, our integrated digital platform. We're currently busy designing a modern data platform to really proactively make decisions on cost base, our utility consumption, behavior of our tenants and also behavior of our shoppers, really empowering the teams to proactively manage our buildings. And then for me, the most important is our client experience, providing the Attacq experience to our clients, and that comes to listen, collaborate and innovate. Standing back and looking at the SA portfolio's performance for the year, I really wanted to just pause for one moment to say thank you to the ops teams, the asset management teams and the property management teams. You guys have pulled all of the socks out. Thank you, well done on a set of results you guys can be all proud of. And as Melt would always say, keep on rowing the ship or the boat. We had 8 new buildings completed for the year, of which the flagship has been Deloitte's, and Giles will talk about the Deloitte's building. Our occupancy at 93.6%. We'll go into detail in the next slide. Really standing still on the collections at 92.5% for the year. We really feel that it's a remarkable set of collections that the teams really did their best of collecting the money, understanding their tenants and providing solutions. Our rental reversions was negative 9.6%. We had 98,000 square meters of GLA that was renewed for the year, of which we had a tenant success rate of 81.7%. Our PGLA green certified increased to 150,000 square meters. The major big inclusion was the Deloitte's building. And then on our solar panel projects, we have completed the Garden Route Mall, which is also now powered or partly powered by solar panels. Looking at the occupancy in our portfolio for the year, and the total year-end portfolio occupancy marginally moved from 93.8% to 93.6%. Highlighting, we have completed new buildings in our portfolio of close to 35,000 square meters, which is 89.7% let. Our industrial portfolio moved from 97% to 100% let for the year. We have signed a sale agreement on 2 Eglin Road in Sunninghill, the old PwC building. And post year-end, we have let to further 4,600 square meters of space. One thing I would like to draw your attention to is the Waterfall vacancy factor, which is currently the occupancy sitting at 98.1%. So that is a vacancy of 1.9% comparing to other nodes in Johannesburg and the Pretoria region of -- I would say this is before the best occupancy node in -- I would almost want to say in South Africa. We offer space management, we control the supply and demand of the area with our developments, but also with our renewal rates that come up. So really understanding what's happening in Waterfall and then also controlling the supply and demand of our space. With the pandemic and the uncertainty of lockdown, as I said before, and also the uncertainty of the length and the depth of the impact of what lockdown would have on our tenants, our property and asset managers first job was to be proactive to start listening to our tenants and to understand what will this impact be. We also reached out to the property industry groups to understand the take and what will the industry provide a rental relief, and we certainly took some guidance from the PIG group. But our aim in all of this was to help, assist, keep jobs of all our tenants in good standing. That resulted into ZAR 113 million of a combination of discounts and deferrals we provided to our tenants. We've had a question this morning, will you further provide discounts and deferrals? And the question is yes. We have definitely seen that there's been a prolonged impact in certain of the industries. And as Attacq, we will certainly provide assistance where we can possible to certain tenants that has been majorly long termly impacted by lockdown and certain trade restrictions. As Melt has mentioned, the valuation for this year was negatively impacted by 8.6%, which equates to ZAR 1.7 billion write-down in our investment property. There's a lot of material valuation uncertainty, a lot of low transaction volume for the valuers. The valuation inputs have been revised. Lower rental rates and growth assumption has been applied. Discount rate in our portfolio averages between 11.5% and 13.75%. The average cap rate increase was between 25 and 50 bps and that equated into a year-on-year decrease of 8.6%. Our retail portfolio was negatively impacted by 8.9% as well as our office and mixed-use portfolio by 10.6%. You'll also notice that our industrial portfolio remained flat by -- well, flat, but 0.1%. So all in all, a lot of material uncertainty in the valuation space, which led us to the 8.6% decrease in our valuations. Looking at our retail portfolio, we have definitely seen quite a number of behavioral shift and also retailers launching new concepts through out of COVID. We've definitely seen the increase of the online platforms doing really well throughout the lockdown periods, but then also retailers launching micro fulfillment models, for instance, the Checkers 66 model. We, as landlords, quite welcome the micro fulfillment model as what they're using their stores as their micro distribution hubs. We've also seen Woolworths launching every week a new venue of click and collect. What will our malls of the future look like in Attacq? We call it a mall should be a retail hub. It's not only a place where people can connect and shop, but also a place where we have on-services demand, where we provide loyalty to shoppers as well as to our tenants and also a click-and-collect distribution model. Over the next 12 to 18 months, you will now see how the Attacq retail hubs will start embarking on trying to fulfill these demand -- these services on demand. What have our retail portfolio done for this year? Our occupancy remained at 97.1%, collections at 88.1% for the year. Our rental reversions was negatively impact by 8.7%, and we definitely see that, in the retail space, it's not about market-related rentals, but really the driver behind rent is your rent-to-turnover ratio for that particular mall in the particular area for that size of tenant. Our tenant success rate was down to 68.4%. Major component of that was the reduction of the Eglin space where Pick-and-Pay took over 4,000 square meters of space at the Mall of Africa. And then something that's not highlighted on this slide, Mall of Africa for the third year won the Coolest Mall in South Africa. And that's just a testament to the team, really understanding the demographic, the clientele and also the loyalty of the mall. And we're really proud of accolade of being the Coolest Mall in South Africa. Standing back and looking at our turnover growth for the year, it was negative impact -- negative growth of 1%. Our rental turnover ratio moved by 2.6% to 7.8%. Mall of Africa for the full year, down 4.4%. Our regional shopping centers performed quite well with a 0.2% growth. And then our convenience and especially our neighborhood shopping centers providing more essential services quick in and out really did really well over the lockdown period with Waterfall Corner growing by 18.8%. Who was the winner over COVID? We've definitely seen electronics, people buying home computers, home schooling, groceries. I think the first week in April, nobody could buy any yeast as everyone was baking bread and then home DIY and home improvement, as everyone was staying at home and the cabin that wasn't fixed had to be fixed. So work from home, renovations and cooking has definitely been the activity that has driven the trade in our malls. We thought we'll share a bit more this year on trading densities to say before lockdown, from July to March, our growth in trading densities was 2.8%. When we look at the national sales -- for national sales in South Africa, that was around about 2.9%. So we really tracked well. Then lockdown happened. And then we had a various different trends that came out of our various locations in our -- on our different malls. You'll notice that Mall of Africa is now currently in August trading at 16% year-on-year decline from the previous year. Unfortunately, we couldn't provide all of the malls details for this year. Eikestad, now in August is 20% down. Garden Route Mall really great green shoots we're starting to see, breaking even, a 1% growth. Our convenience centers, Lynnwood Bridge showing a 32% growth in July and then Waterfall Corner had an exceptional August and May and then starting to taper off as we're starting to see the economy opening up and normalizing. So there's definitely green shoots. We are starting to see normalization. And then when I refer you to the next slide, this is the footfall also with some of our malls for the year, and Melt also referred to this. If we look at January, February, we had good footfall, positive growth. And then this decline started already happening in March with the pandemic approaching and the President announcing the lockdown. And then a sharp decline in April and then gradually improving. If you refer to MooiRivier Mall, you'll see there was a sharp decline and the sharp jump up with people really went back into the mall, they didn't stay at home, but where at Mall of Africa, sharp decline and not has recovered back. Just as a comparison, we've also seen that less visits to the mall, but bigger basket size spend. In average, our fatty data showing us that on an average, where we had a visitor visiting 7.4 stores on average visit to Mall of Africa, they're only visiting 2.9 stores. Our trading density is down by 16%, but our footfall is down by 31%. So that just shows you how the basket spend and the less visits equates to a higher basket spend. So it's been phenomenal to see how every one of our malls have reacted differently to different footfalls and also translating into turnovers. In the office and mixed-use portfolio, the biggest question we get is what will the impact with work from home be on the demand of office space for the future? Standing here today, I don't have all the answers. But what we can talk about is what have we experienced in our portfolio. In our portfolio, we've had not any material lease cancellations nor have we had any big request on reduction of office space as today as yet. We are expecting that we'll start a rising in lease renewal discussions in the future. We're also starting to see that in the beginning, a lot of companies have made the decision to prolong work from home, but we've definitely seen a shift where the city is starting to fill up, people are coming back to work. And also maybe that's with the President opening up to Level 1. Our collection rate in our portfolio has been 97.7%, which has been an excellent set of collection rate. Our rental reversion was down negative 14.3%. And the biggest impact of that was the new auditor general lease that has taken over the Aurecon building. Our tenant success rate has been 90.9%. And the other question we get a lot is, are we still concluding leases? And the question (sic) [ answer ] is yes. We're currently working on some really exciting deals, some really good movement in Waterfall with Giles and his team on new tenants. The tenant deal flow is slower, but there is flow. There is questions, there is ask for new space. And we have signed leases over the last few months. So the market is not dead. It is a little bit slower, but we are signing really exciting leases, which we hope to share with you as soon as those have been concluded. On the light industrial space, collection rates have moved down from 100% to 97.2%, which also evident that every industry throughout COVID has been impacted in some way or form. Industrial portfolio's value uphold quite well. While very long at 9.1% years, and our rental escalation also still maintaining well at 86.8%. In our hotel portfolio, the largest movement in the hotel portfolio from a leasing point of view was we've renewed the Lynnwood Bridge lease with City Lodge for a further 10 years, with an upwards rental reversion of 6.8%. A big question. When will the hospitality industry recover? We feel quite positive with our portfolio. As our portfolio is not exposed to big tourism, but rather to medium business travel. And we feel that with City Lodge Group, which is quite a strong group, that they will bounce back, they've given us between 8 to 12 months. But currently, they are open, they're trading, they're doing bookings. And we hope to see full recovery over the next 8 to 12 months. With that, I'm going to hand over to Giles.

Thanks, Jackie. Good morning, everybody. Development side to Waterfall, obviously, a large driver for us, 1 of our 4 value drivers and a large focus for the rollout of future for the business. Obviously, the overall master plan of Waterfall, we've seen this in previous presentations. I think the colors are starting to now show a pattern emerging. For us, a large focus on the Western side of the city, so sort of to the lower part of the city and the Northern side, where most of the blue is. Blue is obviously the pipeline for us. Yellow buildings under construction. We currently have 4 buildings under construction, 4 cranes up at the moment. And the completed buildings are now starting to paint a picture that the city is definitely evolving into a complete live-work-play environment, especially with the residential that's under construction. Just as a matter of interest, the last 3 years in Waterfall, so that's financial years '18, '19 and '20, a total of 227,000 square meters of bulk has been rolled out in the city. So that's averaging about 75,000 square meters of buildings a year, which Attacq has 57,000 square meters of that as our effective share. Again, a very robust year for us in the last 12 months, delivering over 66,000 square meters of bulk. So we're on par. We're actually ahead of sort of the average 3-year run rate. Of that 42,000 square meters is our effective share, predominantly anchored with the Deloitte head office, joint venture with Atterbury, a very successful building. Just came online in February. The impact on the city with footfall into the mall, pedestrians, et cetera, will slowly start to ramp up towards the end of the year as Deloitte starts to fill the building. They have been predominantly working from home. But I think they are now moving back into the building, and we can start to see the impact in the city as it stands. Ingress buildings 1 and 2, a new campus we opened up, anchored by PSG as the anchor tenant in that, right on the Allandale Lone Creek Intersection, prominent site. That's the image on the top left-hand side. Second building, we built 2 on the same basement structure. The second building was built as a spec building. That's currently 10% occupied, with a tenant that's fitted out in trading, and the balance is under current lease negotiation. Waterfall points, 4 buildings in a Precinct, a little campus just off the grids so to speak. So outside of the main core of Waterfall down on the R55 Waterfall -- the Woodmead Drive. As it was outside of the core part of the city, I think it was a unique opportunity for us to develop a sectional title product, somewhere between 250 and 350 square meters each of those units, been very successful, sold very well. And whatever -- we sold 2 buildings, retained 2 buildings. And in Corporate Campus, Building #5, a very successful, little precinct for us, consisting of 7 buildings -- sorry, 6 buildings in a cluster in a joint venture with Zenprop. Building #5 was the continuity SA Building for Waterfall, pre-leased built, handed over on time. Currently, we have 4 buildings under construction. So 8 buildings completed last year, 4 still under construction this year. Corporate Campus Building #4, which is between Accentia and Continuity SA, that building is -- 100% of that is currently under lease negotiation between 2 tenants. And then our successful residential scheme, Ellipse, we launched in November 2018. The first 2 towers has -- in fact, the first tower has just topped out at 10 floors that's Nieuwtown Tower. Kepler is catching up behind it, 269 units. 75% of those are bankable sales with a higher number of sales. Obviously, the difference between sales and bankable is the lag from purchase to when the banks provide the funding to that particular purchaser. Building #3 is on the market that will be the tall tower, that's 18 stories above ground. That's currently in sales at the moment. So we're selling both Phase 1 and Phase 2 simultaneously. The Courtyard Hotel had a significant delay due to the COVID lockdown. There's certain times of the year as you want to launch a hotel. I think with the COVID lockdown and the recovery program, we ended up in a December opening, which is not ideal for any hotel chain. I think that we have now managed to open -- looking at opening that come February, March, following year, next year, bringing on board 168 keys in the 4-star business category to Waterfall. I think it was a lack of a product that has been fulfilled definitely with this key product by City Lodge. And one little warehouse was completed, it was currently under construction, should I say. The second last development in the -- in our industrial precinct, the logistics precinct. That's also currently under lease negotiation. So whilst a robust year of 42,000 square meters completed in the preceding 12 months, 22,000 under construction at the moment. I think it does point to paint a picture that Waterfall is still a desirable location. There is still a significant interest in Waterfall from a tenant's perspective on why they would migrate to Waterfall. And I think we just got to keep that churning at the moment through the lockdown and then into the next couple of months and proceeding years. That is all from a development perspective. I hand over to Peter from MAS.

Thanks, Giles. Good morning, everyone. Our investment in MAS totaled ZAR 1.9 billion at year-end and represented 7.8% of our total assets. It also contributed ZAR 0.305 per share to our core distributable earnings per share during the current year. This is quite a busy slide, but it provides a useful overview of MAS' strategy, where its assets are located and where its equity is deployed as well as where its distributable earnings are generated. All numbers on the slide are based on MAS' adjusted proportional accounts, which is a useful addition to the IFRS-based reporting. MAS' focus on the Central and Eastern European region, and they have stated their intention to exit all of their Western European assets and redeploy this capital into the CE region. Prior to COVID, MAS had announced a very aggressive timetable in order to achieve this and was targeting asset disposals of EUR 511 million in the next -- in the 2020 calendar year. With the onset of COVID, this realization tempo would have slowed. And the target is now to exit EUR 308 million of asset disposals from Western Europe in the remainder of the calendar year. Subsequent to the year-end, which is also June, they've announced EUR 98 million of disposals. So really made a quite solid headway into the 2020 calendar year target. The onset of COVID will also mean that certainly Western European assets will be held for longer, particularly some of the German retail assets, which will take longer to manage and exit as well as the U.K. assets, specifically the hotel -- Adagio Hotel and the U.K. land holdings. Looking at Box #3 on Slide 24 in the total, you can see MAS' NAV has declined by approximately EUR 100 million from the prior year. The large drivers of this, we have included in the adjusted accounts would be a EUR 50 million provision essentially for future costs relating to the exit of the Western European assets. So that's to guide the users as to what the impact of -- the one-off impact of exiting these Western European assets will be. From an investment property perspective, since December, they recorded approximately EUR 44 million of investment property devaluations. The majority of this, which is approximately EUR 37 million or EUR 36 million was recorded on the CE portfolio. And that amounted to a 6.8% decline since December. The Western European assets were less affected by COVID and they declined from December was just under 4% at 3.7%. Distributable earnings was flat year-on-year, but it still reflects the impact of COVID because MAS had deployed a lot more capital into the CE region and one would have expected a marked increase had it not been for COVID. Still looking at the region, if you add up the CE box for distributable earnings as well as a development JV, which is also located in that region, you can see that 65% of MAS' earnings going to come -- distributable earnings currently come from that region. MAS did not declare a final dividend for the 2020 financial year. They've also not given additional guidance at this time, just given the uncertainty surrounding COVID. They have said they will consider paying dividends in the future, but that's subject to considering liquidity versus investment opportunities at the time, profitability of the business as well as funding commitments. Moving on to the next slide. We've got a few points on the impact of COVID-19 on MAS. So going into COVID, MAS would have had a strong balance sheet in terms of ICR and LTV metrics. It had a CE focus, targeting 5% like-for-like growth in net rental income for the next 5 years to 2025. It had recently internalized a CE management platform. And as stated at an accelerated excess strategy to exit Western Europe and redeploy that capital into the CE region. Then COVID hit and the MAS management team had to take a number of steps on a proactive basis in order to deal with the unfolding pandemic. Similar to what you've seen like over the world, the steps included reducing the operating costs to limit the impact on the tenants in terms of cost passed on, drawing down on all available facilities just to ensure the group had liquidity in chance if there was some form of a banking crisis, providing rental relief in the form of discounts and deferrals to all of their tenants and suspending all uncommitted and nonessential CapEx, including certain developments, which could be halted. In terms of developments that could not be halted, which are too far advanced, they put continuity plans in place to ensure that all the materials on site to still complete the assets within a reasonable time, notwithstanding the impact of COVID. If we look at the impact on trading, MAS suffered some form of a lockdown from March to mid-May in every jurisdiction it operates in. These lockdowns similar to South Africa impacted nonessential retailers more than essential retailers. And in that respect, we can see that the CE assets suffered more than their Western European assets. The reason for that is that Western European assets have a much higher proportion of essential retailers and essential tenants operating in them. From a collections perspective, during the March to June period, the collections for the CE region averaged 62%, and that's compared to 86% for Western Europe. And then just looking at July, which obviously by then lockdowns had lifted and trade was starting to pick up, the CE region had improved to 76%, and 92% collection rate was recorded with respect to their Western European assets. Okay, moving on. Just looking at the MAS and Prime Capital development JV, in which MAS holds a 40% stake. Three assets were completed during the current year, 2 value centers or what MAS often calls an open air mall, and then also a large 30,000 square mile mall, Dambovita Mall, which was completed in August. It was originally targeted to be completed in May. COVID put paid to that. And not withstanding COVID, the mall opened successfully in August of this year. Developments in process as we speak Marmura Residence in Bucharest, which is MAS' first residential development, it's at the lower end of the market. It's a 5 residential tower development, totaling 459 apartments. The first 2 apartments have sold very well to date and 78% sales have been achieved to date. Also in progress at the moment is a value center, Sepsi Value Centre, which was suspended with the onset of COVID and work on that mall has recommenced. And then what will commence very shortly is Avalon Estate, which is MAS' upmarket residential development, also located in Bucharest and it's been very well received by the market to date. With the onset of COVID, a number of MAS' in-closed mall expansions and planned expansions, extensions were put on hold, namely the large scale or the large extension planned for Mall Moldova just under 60,000 squares. And other notable expansions put on hold would be Militari in Bucharest, which is 26,000 square meters. MAS will reevaluate these and relook at the feasibilities once more data is available, just given the longer term impact of COVID and then make a decision based on more updated information. In the pipeline, the Silk District, which is a large-scale mixed-use development located in Iasl, Romania, has recently received zoning permissions. And this is a sizable project. It represents EUR 277 million out of the entire EUR 425 million development pipeline at present. The nice thing about the zoning approval received, it's very flexible between residential and office. So MAS can tweak and adjust the mix between those 2 uses, depending on the longer term impact of COVID on office demand, which I think a lot of people are still waiting to see how that plays out. Also in the pipeline, there's a large mall, Arges Mall, it's a regional mall, just under 56 or just over 56,000 square meters. And then they also have 4 new value centers planned, totaling just over 60,000 squares and extensions to 3 existing value centers. Anecdotally, the value centers or open air malls have proven to be quite a resilient asset class during the time of COVID, similar to what we've experienced at from a Convenience Center type offering in South Africa where you just want to get in and get your basic shopping done and get out and not have to walk through a large mall in order to do so. So during the peak COVID periods of March to June, footfalls in these types of assets were down 36% in the CE region, whereas in closed malls, MAS' footfalls were down 64% at peak times. So it does speak to the resilience of the asset not to staying any other benefits from a cost perspective running this type of an asset. Now we can take a look at what MAS did in our financials over the year. We -- equity account for MAS, as we hold at greater than 20% stake in it. We started the year on just under 3.2 billion, which was essentially our share of MAS' NAV and our shareholding at that stage was 22.8% We then picked up our share of their loss for the year and changes in reserves. We received just under ZAR 234 million in dividends -- cash dividends in our accounts during the year. And then there would have been a positive impact just given the significant devaluation of the rand against the euro over the year. That results in an equity accounted value of ZAR 3.2 billion at the end of the year. However, given the significant decline in the MAS share prices onset of COVID, we have written down our shareholding in MAS to the market value as at year-end. And we've accordingly recognized a significant impairment of ZAR 1.3 billion during the current year on our MAS Holding, which Melt mentioned earlier as well. Moving on to our Rest of Africa retail investments. These are now have a cumulative value of ZAR 5 billion as at year-end or 2% of our total assets. And these assets contributed ZAR 0.015 per share to our core distributable earnings per share during the year. This slide gives a breakdown of what sits in each of these assets. We've got cash on our Malaysian subsidiary's balance sheet of ZAR 68 million or just under ZAR 69 million as at year-end. That is our cash available for us to use. It's not trapped within the entity's underlying investments. We've got a 25% shareholder loan into Ikeja City Mall, Mall, which totals ZAR 204 million at year-end. And then we've also got a shareholder loan at Africa where we've got just under 27% economic interest, and that totals ZAR 211.6 million at year-end. Looking at the accounting and the significant movements in Rest of Africa, we invested a further ZAR 4.6 million in acquiring other minority shareholder loans during the year. That was between ourselves and Hyprop just -- that was just to tidy up the shareholding structure and leaving only ourselves and Hyprop as the 2 shareholders and simplifies our strategy going forward. We've received net loans out. Net relates to our disposal of -- the disposal of Manda Hill in Zambia by Attacq during the year. Then what we've done is we've split the negative movements or impairment in accountant speak the expected credit loss into 2 components. The first one which we've indicated as an impairment of just under ZAR 74 million in respect to the Rest of Africa retail investments is can be attributed to the underlying external fair value declines on the assets themselves. And then the ZAR 71 million alongside that is what you would call an expected credit loss adjustment and that's from the application of an expected credit loss methodology as required by IFRS 9. And we've done a similar thing on Ikeja. So we've also split the impairments into 2. And I think what's notable, though, is subsequent to year-end, our fellow shareholders and ourselves have made significant process in disposing of Ikeja City Mall. We expect to conclude binding sale agreements in the next few days. And the salient terms which I can share is we will be pricing at asset of a 100% valuation of $115 million, and then we will adjust for property level as well as net working capital within the structure in order to arrive at a purchase price. So that -- those impairments take into account that revaluation already. Yes, that leaves us with a ZAR 204 million investment in Ikeja. I think what's important to note is we don't have at Attacq level any debt against these investments. So to the extent we realize value out of them, we will be able to deploy that cash into our investment pipeline as well as into our debt in the South African level. I'll now hand over to Raj for the financial section.

Thanks, Pete. So I'm going to start with a quick financial overview of the results. Melt has touched on some of these items already. Looking at our core DEPS, that's declined year-on-year by 10.5%. That was largely driven by rental discounts and ECL provisions relating to the South African portfolio. I'll unpack that in a bit more detail shortly. Looking at our interest cover ratio. Obviously, this is a major that's been a focus for us as a management team for some time. I think over the years, we've made good progress. The last reporting date of December 2019, we were at 1.91. Unfortunately, we've gone backwards to 1.68x. Again, that's as a result of lower earnings, mainly attributable to the South African portfolio. And I do think that this interest cover ratio in the short term will continue to come under pressure as there is pressure on earnings going forward. Looking at the gearing ratio, another metric that's a key focus for us. That's increased substantially to 45.7%, largely as a result of lower valuations in the South African portfolio, the impairment that Pete talked about with regards to our investment in MAS and a number of smaller impairments and write-downs, which I'll also unpack shortly as well as an increase in interest-bearing liabilities. Looking at our debt expiry profile, that's reduced from 3.6 years to 3.2 years year-on-year. We've spent quite a bit of time, and I'll talk to it in our liquidity slide around doing some soft rollovers with regards to maturing debt in the next 12 months and extending the route. Looking at our weighted average cost of debt, and I think you must look at this in conjunction with our interest rate hedging. Interest rate hedging at 79.2% of total facilities, a fairly high number. And as a result of most of our interest-bearing debt being hedged, our weighted average cost of debt declined from 8.8 to 8.5. I think, ordinarily, you'd expect that to reduce by more given that the repo rate in the last 12 months has reduced by 300 basis points. But again, as a result of the higher hedging percentage, we haven't seen all of that benefit filter through in our cost of debt. For the first time this financial year, we've adopted IFRS 16, and that gave rise to us recognizing a right-of-use asset of around ZAR 288 million as well as a corresponding lease liability of about ZAR 275 million. The leasehold land in this financial year, we've changed our valuation technique, and I'll unpack that in a slide just now. Looking at the core distributable earnings per driver. If you had to unpack the South African portfolio, that's declined by 23.5% mainly as a result of rental discounts being passed on to our tenants, we've written off some of those receivables at year-end and writing them off as bad debt. In addition to that, we've raised substantial ECL provisions against the remaining lease receivables rather. And then there's been also an adjustment in the SA portfolio, which I'll unpack in a forthcoming slide, which I believe we've been fairly conservative in how we've treated our receivables in respect of distributable earnings. Our NOI for -- on a like-for-like basis was 4.2% before taking into account rental discounts, which I think is a decent growth percentage given the economic environment. Looking at developments at Waterfall, this segment really reflects the holding cost of the land here at Waterfall. That increased by 10.5% to ZAR 29.3 million. And the holding costs there rely in respect of POA levies, rates and taxes and some marketing costs. Looking at our investment in MAS. That increased 13.7% to just under ZAR 215 million. I think what's important to note here that our investment in MAS contributed 2 dividends to our distributable earnings in this financial year. And the reason for that is that we account for our dividends in MAS once we receive it, not in advance. So we've effectively included the distribution that we've received from MAS in March of this year and then in October of last year. Obviously, going forward with MAS indicating that they will not be paying out a final distribution that will have a considerable impact in respect of our distributable earnings that we will report for the 6 months ending December 2020. The underlying MAS dividend in euro terms reflected quite a strong increase of 17.9% and then that was reduced by forex movements as well as interest in our euro funding. The Rest of Africa retail investments amounted to just under ZAR 11 million, and there was interest that we've received on our investment rather on our loan in our investment into Ikeja City Mall. That gave us, like I said, a 10.5% decline year-on-year on our core distributable earnings. I think looking back when we reported in our December results, we're very much on track on our guidance of achieving at least a 10% growth. But obviously, the last 3 months of the financial year was impacted quite significantly with respect to COVID and the adjustments that we've needed to make for that. Looking at the bottom of the table, we've made 2 adjustments between last year and this year with regards to our core DE versus our distributable earnings. This year that related to a cancellation fee that we received in respect of the old tour building, which we subsequently disposed of. We believe that was non-sustainable in nature and therefore, it's reduced our distributable earnings with that amount. And then with regards to interest received from South Africa last year, we reduced our distributable earnings with roughly ZAR 0.13 as a result of that interest being serviced from the underlying disposals of properties and obviously, that's not sustainable. So that was the adjustment last year. From a dividend per share perspective, We've -- as Melt has pointed out, we've paid out an interim dividend, which was concluded in March of this year of ZAR 0.45 per share. The Board has resolved not to pay out a final dividend for the period ending June 2020. That has resulted in a year-on-year decline of ZAR $0.448 per share. And I think we get quite a number of inquiries, and I think it's quite topical within the REIT industry around the REIT requirements as it relates to minimum distributions. And perhaps this is a good time to just chat to some of those requirements. And we've also indicated to the market that we are complying with those REIT distribution requirements. And I think that has led to some confusion. I think maybe taking first one step back. If you look at the legislation, it requires you to pay out a minimum of 75%. And it actually -- if you look at the JSE listings requirements, it refers to distributable profits, and that's a defined term in the listings requirements. It is really a tax computation that takes into account your gross income, less your deductions, less any allowances that you're allowed in terms of the Tax Act gives you a distributable profit amount. And in terms of that distributable profit amount, you need to then distribute at least 75% of that to be within the listings requirements. And obviously, anything between 100% and 75%, then a tax liability. A lot of people look at REIT's distributable earnings statement, then apply 75% quotient to that, arriving at what they believe is the minimum distributable amount and then compare that to what the dividend has been declared and paid for the financial year. And I think the distinction that needs to be made is that the distributable earnings in REIT's distributable earnings statements firstly reflect a consolidated distributable earnings amount, whereas the distributable profit is a tax computation, which is done on a legal entity by legal entity basis. And therefore, the consolidated amount doesn't necessarily equal the tax consequences of the group because that's determined on an entity-by-entity basis. And secondly, distributable earnings follows a lot of accounting principles, adjustments made for the REIT best practice and then sometimes company specific adjustments like we've made where we believe certain items are unsustainable and then you get the distributable earnings amount, whereas the distributable profit calculation is very much driven by the tax legislation. So during this financial year, we look at Attacq Limited, the legal entity. It's -- the majority of its income is derived from distributions from operating subsidiaries within the group. And therefore, the dividends that those operating subsidiaries made up to Attacq Limited, we had to ensure that by including that into its gross income, subsequently making any available deductions or allowances, we at least distributed 75% of that, and we've passed that test. Similarly, the operating subsidiaries will do a similar calculation. Most of our operating subsidiaries do not receive dividends. However, they've got income-producing investment property, which is rental income in nature. They then do a similar tax computation. And we've also been fortunate that a lot of our subsidiaries have had historical assessed losses prior to us converting to a REIT, which we can still use and apply against taxable income which we have done during this financial year. And as a result, any distributions made to Attacq that were less than 100%, most of that was buffered by these assessed losses. So as a result, both Attacq Limited and the operating subsidiaries will be complying with the REIT tax legislation. I want to just pause on the rental relief, I think Jackie has alluded to some of it. I think it's important to understand what the full impact on distributable earnings has been on rental relief. Turning for the period ending 30 June, we provided ZAR 103 million worth of discounts to our tenants. By far, the majority of that related to our retail portfolio, being the portfolio that was hardest hit by the lockdown. A lot of our clients and tenants could not trade under the early lockdown -- provisions of lockdown Level 5 and Level 4. And I think we've diverted a lot of this rental relief to our SMMEs, which we believe to be more vulnerable tenants that some of them are still not trading to the full capacity. Jackie has mentioned them like some of our gyms, the cinemas, and more recently, the restaurants have been able to trade for longer and being able to serve alcohol, which has been a huge positive. But up until now, they've struggled. We've also then written off bad debt amounting to 5.5% of our gross receivables. That translated into about ZAR 4.6 million bad debt write-off for the period, which has also then impacted our distributable earnings. In respect of ECL, expected credit losses, this is effectively provisions based on the ECL methodology and driven by IFRS. We've made a substantial ECL provision of just under ZAR 33 million, and this amounted to almost 39% of our gross receivables after taking into account bad debts. And I think, typically, our peers effectively stop at this level. And this is where the impact on distributable earnings comes to an end. We've been a bit more conservative, and I think a bit more prudent in how we've approached our distributable earnings. We've reduced distributable earnings further by the net receivables from lease -- from our lease -- from our tenants rather at the end of the year after bad debts and after the expected credit losses. And so really, what this achieves is that what's sitting in our distributable earnings is very much now aligned to a cash-based earnings, which I think is important for us. We do an analysis at year-end, comparing our cash from operations to our distributable earnings. Given the COVID pandemic, our trade receivables in respect of lease receivables specifically has increased substantially. And as a result, we've tried to exclude those amounts still due to us from our distributable earnings. So quite a substantial amount, ZAR 172 million worth of hits that we've taken into our distributable earnings, but we do believe this is a prudent way to approach our DE. Looking at the balance sheet. On the face of it, the South African portfolio remained relatively flat, but we've already talked to some of those adjustments, and I'll talk to it in the forthcoming slides. We've taken quite a number of fair value adjustments downwards in respect of investment property. But the South African portfolio, specifically was the beneficiary of the properties that we concluded or completed rather during the year, most notably the Deloitte head office, which then gets transferred out of developments at Waterfall into the South African completed portfolio. And that has helped us almost remain flat in terms of this particular driver. We've also recognized, like I said earlier, the right-of-use asset, which has helped us from a South African portfolio asset basis. The developments at Waterfall declined 26.7%. And this is as a result of, like I said, completed buildings are getting transferred out of the segment into the South African portfolio. There are some developments that are still under construction within this particular segment, but they are relatively at an early stage. This segment also includes our leasehold land, and there's been a fair value adjustment there, which I'll unpack in the next slide. And then we've had some positive fair value adjustments on both developments under construction and then the leasehold land. Investment in MAS, Pete has talked to this. We typically equity account our investment in MAS. Last year, we get it at a -- just under ZAR 3.2 billion. This year, in terms of IAS 36, we've needed to test this investment for impairment. That's as a result of the share price trading at a substantial discount to the net asset value per share. We've effectively written down this asset by ZAR 1.3 billion being taking this investment rather down to its market value less its cost to dispose. So quite a substantial knock from an asset perspective, ZAR 1.3 billion. Rest of Africa retail investments. Pete has also talked to this. This includes a combination of fair value adjustments of those properties in country as well as increased ECL provisioning on the loans that we've made into these investments. This has declined by just under 41%, and we're now carrying these investments at ZAR 484.9 million. The Head Office South Africa segment used to largely pertain to our intangible assets and goodwill, which both relate to the asset management agreement that we internalized just prior to listing. We've had to test both goodwill for impairment as well as the intangible. I think there have been a few contributing factors to the impairment test. One being lower asset valuations, which drive a lower asset management fee and then expected collections being lower going forward. And again, that's driving lower property management fees. The discount rate that we used to calculate the intangible asset has also increased substantially being an updated weighted average cost of capital for the group given the current market and the current share price and cost of debt. And as a result, we've written down the goodwill to nil, and we've written down the intangible asset to 0. Goodwill, as you know, we cannot write it back up. But the intangible assets, we will reevaluate them on an annual basis. And if there is an increase in the value, then we can write that intangible asset back up. Total assets, declining by 9.2%, down to just over ZAR 24.5 billion. If you look at total liabilities, increasing by 13.2%, and this is -- contributing to this is maybe 2 or 3 major factors. One being the drawdown on development funding for our developments under construction. And then the other major impact on this particular line item has been the increase in the negative mark-to-market movements as it pertains to our interest rate swaps. So as a result of a lower interest rate environment and a lower interest rate outlook, our swaps are deeply out of the money and that's added just over ZAR 500 million to total liabilities. We've also, like I said, recognized a lease liability for the first time of roughly ZAR 275 million. The net impact on total equity a decline -- a substantial decline of 25.7%, almost ZAR 4 billion reduction, and that again is a result of the lower asset value and the higher total liabilities. Valuation of leasehold land. We've talked to this in our interim results presentation. We've changed the valuation technique from a residual land valuation to comparable sales technique. This is an internationally recognized valuation technique that's been used also by our peers. And really, the reason for us moving over to this technique is that it requires a lot less assumptions taking into account really sales of comparable land holdings in and around South Africa. This has been concluded by an external valuer. And in effect, what we've done is we've categorized our leasehold land into 2 major categories, one being our unserviced land, in effect, farmland, and then the second category is our land is either partially or fully serviced. And then we've derived comparable sales of the 2 categories using a number of comparable sales data points that have been made available. And as a result of this, we've then applied certain price points or rates per square meter either to the bulk or to the land area depending on the type of land that we are valuing. And we've come out to a gross valuation. That valuation is then adjusted for any further cost of servicing or cost to complete. And then we also then deduct further from that our lease liability to bring our valuation to a leasehold basis. For the period, we've recognized a fair value adjustment of just ZAR 19 million upwards from our last reported value adjustment -- fair value adjusted amount and that brings us to just over ZAR 1.1 billion in terms of a leasehold land valuation. Investment properties. Turning to this slide, I think, you can maybe focus on the second part of the slide being the June '19 to June '20 movement. We've talked to some of this already. Right-of-use assets, ZAR 288 million on the first time adoption of IFRS 16. ZAR 667 million worth of CapEx that we've incurred, largely as a result of developments under construction. But some of that also related to our existing completed property portfolio. In terms of fair value adjustments, positive fair value adjustments on our developments under construction as well as our leasehold land, which I just touched on. But a substantial fair value negative adjustment on the completed portfolio of just over ZAR 1.7 billion. Jackie has talked to some of that. I think the major portfolio is impacted there was the retail portfolio as well as the mixed-use portfolio with the light industrial portfolio actually holding up quite well in the current market. So quite a substantial write-down in valuations. And then we've had a held-for-sale asset this year of just over ZAR 75 million, and that relates to 2 Eglin in Sunninghill. We've signed a sale agreement. And subsequent to year-end, we've disposed of that particular asset. And then that brings us to effectively an investment property balance of just under ZAR 19.4 billion. I think quite topical for most companies currently and definitely in the REIT sector, liquidity and how companies are managing their liquidity. So maybe before we go into what we've done as a management team, I think the impact of the lockdown largely coming from the rental relief that we provided to our tenants in the form of discounts and deferrals. But we've also seen lower collection rates, which has impacted our liquidity. We've also found that disposals are taking longer to compete and execute. I think as a result of a lot of uncertainty in the market with regards to valuations and what is a sustainable NOI on properties. But also, I think the availability of capital, to some extent, reducing substantially both from a debt and equity perspective. We've also, from a development perspective, looked at our developments under construction that needed to be halted for at least 2 months. But fortunately, we've resumed all of those developments with no penalties being good. Our response, we reviewed all of our operating expenditure as well as our capital expenditure, made reductions to that. And from a CapEx perspective, only approved nondiscretionary CapEx on the completed portfolio. We've reviewed all 4 developments under construction and took the decision to continue with all 4 of them to completion. We've secured additional liquidity facility of ZAR 103 million. That's in addition to the existing unutilized liquidity facilities that we had prior going into the lockdown and into the COVID period. None of those facilities have been ever drawn down. And so that's really just a backstop liquidity facility. We've also engaged extensively with lenders throughout this period, keeping them up to date with what's happening on the ground. And we've negotiated 2 things from them. We've obtained covenant relaxations with respect to our December 2020 covenant measurements. And then we've also done a substantial amount of refinancing. I think, as a management team, we were focused on all of the debt that was falling due in the next 12 months. We've effectively renegotiated the maturity dates of ZAR 5.9 billion worth of debt, and that's resulted in no debt maturities falling due prior to 30 September 2021. So I think that was a big win for ourselves. Also from a dividend perspective, we've obviously not declared or will not pay out a final dividend for the 2020 financial year that has the impact of retaining those earnings and cash as a result. And like I said previously, has not resulted in any additional tax liabilities or tax being payable. I think looking forward from a focus perspective, we are focused on a debt reduction plan, and we will dispose of some of our South African properties to reduce debt. We will, from a development perspective, focus on tenant-driven developments rather than speculative developments. And we do have currently sufficient cash and facilities available to complete all of our developments under construction. A big focus for the team will be doing further debt maturity extensions, and I'll talk to that in the next slide with regards to our current repayment profile. And then we've also announced that for the interim period ending at 31 December 2020, we will not be making a dividend. And again, that will help preserve liquidity. If you look at the doughnut on the left, that's just a snapshot of the available liquidity that we have. We have over ZAR 670 million worth of cash, available cash, unrestricted cash and then ZAR 424 million of available liquidity facilities and then an amount of about ZAR 270 million of facilities for developments. Interest-bearing debt, to some extent, we've covered a lot of these metrics already in the preceding slides. Our rand-denominated debt increased by about ZAR 900 million. And again, that's as a result of development facilities that we've drawn down to complete properties like the Deloitte head office. Euro facility has largely remained flat year-on-year. We've talked about the average loan term reducing to 3.2 years as well as the gearing of 45.7% as a result of lower asset valuations and higher drawn debt. And we've also talked about the weighted average cost of debt. A question that we did get earlier today is based on our refinancings, what are we seeing in the market with regards to cost of debt? I think base rates have definitely come off substantially. But what we've seen is margins have, in fact, increased as a result of liquidity premiums being quite high, most substantially in foreign currency debt, but definitely also on the rand-denominated debt, liquidity premiums have pushed out and have actually resulted in margins being higher than in prior periods. From a group covenant perspective, a lot of work done on both group covenants and portfolio covenants. The bank gearing ratio has been set at 60%, and we're currently at 49%. So substantial headroom in that particular covenant. And then we've got a net asset value, minimum NAV covenant at the ZAR 10 billion, and we're currently registering an NAV of ZAR 11.6 billion. So covenants, obviously, quite a key part of our debt management, and we're proactively looking at that and managing it. Looking at our funding mix. We've got a spread of 9 lenders being a combination of local banks and local institutions. We do not have any exposure to foreign banks or any debt capital market exposure, which I think has held us in good stead in the last couple of months. 42.7% of our debt provided by Nedbank being one of our most significant lenders. They've funded both Mall of Africa as well as PwC, and more recently, the Deloitte head office amongst some of our other developments. Standard Bank being our second most largest provider of debt funding a 27.7%. Turning to the slide, again, we've talked to most of these graphs already being the ICR, the weighted average cost of debt. Perhaps just to spend a minute on the debt maturity profile at the bottom. So we've talked about the next 12 months with no facilities falling due. But between 12 and 24 and 24 and 36 months, a substantial amount of our debt falling due. Firstly, as a result of us completing the soft rollovers, pushing out our debt for the 12 months, that is now obviously sitting in the 12- to 24-month bucket. And this will be obviously a focus point for the team in the next couple of months to refinance this, but also stagger the maturity so that we've got a more even refinance profile. My last slide, talking to our movement in NAV per share, being the bridge between June '19 and June 2020. We started out with an NAV per share of ZAR 22.16. That increased marginally with share issues as a result of our LTI scheme of about ZAR 0.01 per share. OCI reduced the NAV per share by also ZAR 0.01 per share, and this largely refers to how we've treated Edcon. We prior to them going into businesses and doing the transaction with retailability and TFG, we had opted for the reinvestment plan, where a portion of the rental income that was due to us was then reinvested in a combination of equity and debt instruments. Our historical treatment on that was to write that down immediately down to nil, and this OCI movement is as a result of that. The loss for the period that we've talked about, most notably the discounts rather the fair value adjustments in investment property and the impairment in mass as well as the intangible assets have resulted in a 5.37% per share decline. The dividend paid of ZAR 0.86 per share includes the interim dividend of ZAR 0.45 per share that we paid out in March and then the ZAR 0.41 that we've paid out in October of 2019. Other distributable reserve movements of ZAR 0.14 per share pertaining to Nieuwtown, where we unwound the present value of the loans into the Nieuwtown investment, and that's as a result of us selling that investment to our JV partner. The FCTR of ZAR 0.38 per share positive as a result of translating the Mauritian sheet that we've got that holds the investments into Africa and translating that from dollars into rands, and that's resulted in a positive FCTR. And then the last 2 adjustments relating to share-based payments with regards to our long-term incentive scheme. That lands us at a NAV per share of ZAE 16.45. And I hand over to Melt.

Thanks, Jackie, Raj, Pete, Giles for your presentation. I've noticed that we are 5 minutes over half past. I'll keep it short. If you look at the strategic update, it also talks to where is our focus as a management team and as colleagues. Maybe to take a step back, if you look at the SA portfolio, it's about 90% of our total assets. International is about 10% in gross value of our assets. I sometimes tend to oversimplify. So to oversimplify the focus in the SA portfolio is high occupancy, high collection, keeping tenants, shoppers happy, and it's much easier said than done. But I'm quite bullish and positive that we're at the end of this during COVID phase. And before COVID, we had a quality portfolio, and that portfolio is in the recovery phase. But like I said, the focus is tenants and tenants and shoppers, winning the international space. They are only 3 underlying investments. It's -- one, it's in MAS and then two in the Rest of Africa. Like we've previously said, the intention is to exit Africa in a responsible manner. Then again, to oversimplify, we've got about 55 properties, we've got 3 investments, and that is the portfolio. When there's a capital structure overlay to the portfolio? If I look at the questions, and unfortunately, we don't have time to answer all the questions. We've received 7 questions, and we will go back to the participants on the individual questions. But the questions, I think, one, there was a focus on the 75% regulatory requirement and the payout ratio, Raj has touched on that. And the second focus not only for Attacq, also as the industry talks about what is a sustainable capital structure for a REIT. Us, the focus is on the interest cover ratio. What we have said, we would like to have a minimum interest cover ratio of 2x by the end of the next financial year. Unfortunately, with COVID, I think the intention was to have it by end of 2021, but we've pushed it a bit forward. So that is our intent. Our intent is to have a minimum interest cover ratio by the end of the next financial year. Maybe to conclude, I would like to thank all our stakeholders. I'm going to quote a couple of numbers when I talks to stakeholders. We've got 917 tenants. If we do say that the shoppers visit us on a monthly basis, then we've got a plus/minus 5 million shoppers. We've got 6,600 shareholders. We've got 9 lenders. And I think then most importantly, my 160 colleagues, I would like to thank you for your support for Attacq over the last 6 months, and we will meet again in 6 months' time. Thank you.