Equites Property Fund Limited (EQU) Earnings Call Transcript & Summary

Good morning, everybody. If we can get going, we will try to start on time as we obviously have quite a few people logging in online, and we'd like to get going if that's okay. Everybody's seated, everybody got their drink, fantastic, awesome. So welcome all and welcome to the year-end presentation for 29th February 2024 of Equites Property Fund. Obviously, a great pleasure to see some good shareholders here with us and that have followed the journey with us over the last 10 years. Believe it or not, next month, 18th of June, will be our 10-year anniversary. So obviously, very excited. Quite interesting that we had Bruce Whitfield with us earlier in the year at one of the functions that we had for the broker network. And I'll never forget on the day we listed, he spent 20 minutes basically telling me that I was wasting my time and that we should -- why do we even bother coming to market? That we won't exist in 6 months' time. So obviously, it was a hell of a pleasurable experience to spend a morning with Bruce telling him that we've lasted 10 years. So -- but yes, so on that note, let's get going with the business at hand. So I think we start with this -- I'm a bit puzzled by the fact that my team have decided to put a photograph of me on this particular slide, but be that as it may, I mean it really does speak to, I suppose, our message that has been almost monotonous over the last few years, and logistics does remain the prominent sector of the commercial real estate property market. And notwithstanding what's happened in the last 18 months in terms of the global economic conditions, it still continues to experience incredible momentum. And what I can tell you is, over the last 6 months, we've engaged with a lot of third-party capital from across the globe. And the one consistent theme across all capital is logistics, and real estate is the #1 theme. Number 2, lots of different things. Some have got data centers; some have got student accommodation; some have got health care. But the one consistent thing is logistics remains #1. And Equites, obviously, we continue to remain committed to the space. And we really do operate at the top end of the market. We really do try and operate to create the best space that will stand the test of time and will afford our tenants a supply chain advantage that is not to be underestimated. I think real estate plays a real -- really important part in that decision-making process. Before I sort of highlight the year-end review, if you like, I mean -- and we'll go into more detail. I mean -- I think the one thing I would like to put across is that I think the messaging from Equites to the market has been consistent, it's been concise and it's been executed upon. I mean -- I think last year, when we stood here and we presented the numbers going into a very difficult year, there was many a person that presented us with a doomsday scenario for our business. And the reality is that the numbers that we present today are a testament to an incredible team that have done incredible work but also to a strategy, a business strategy that has afforded us the opportunity to be a relevant business in the 22nd century. And more importantly, we take great pride in the fact that our messaging has been consistent. We communicated that we were closing out cross-currency swaps, and there was going to be an impact. We were very clear with that. And Laila and Warren will take you through some of the detail of the impact of that to the business. And we communicated it very clearly. We communicated to the market that we were looking to sell the Newlands development platform. We were not looking to get out of the U.K. And again, we were very, very, very clear and precise in that communication. And notwithstanding that, we obviously had a lot of question marks around that. Our balance sheet health has remained absolutely critical to what our business is and how we go forward. And I think the metrics that Riaan will present later, will talk very clearly to that. And development remains a very integral part of our DNA and what we believe does differentiate us and allows us to create product, which will stand the test of time. And then just to add a little cherry on the cake, ESG, obviously, is very important. Very proud, in the last week or 10 days, we've had quite a lot of press on our first wheeling project in Cape Town with the City of Cape Town -- and Warren will talk to that and maybe in a little bit more detail later in the presentation. And just before I sort of actually go into the detail of the year-end review, I mean I noticed an article in the press this week where, obviously, with Amazon having gone live, a lot of press for Amazon, and I quote Robert Koen, who's the MD of Amazon Sub-Sahara, he claims that the difference that Amazon are going to bring to the South African market is the delivery experience. Now how can you do-- how can you create the delivery experience if you don't have the commensurate real estate to afford you and the commensurate technology to afford you to create that experience? There's absolutely no chance. And that's why Equites remains relevant in real estate today. And that's all I'll say there. In terms of our business, DPS, obviously at 131, payout ratio at a 100% as we communicated on the 29th of Feb at our pre-close that the payout ratio was going to be a 100%. It is 100%. Very pleasing to the Equites team. This is always a very key metric in terms of our business moving forward and moving in the right direction. NAV growth, and obviously, really pleasing like-for-like portfolio increases in both SA and the U.K., which is obviously very pleasing. And then, as I said earlier, balance sheet health, 39.6%, slightly lower than last year, but it really talks to how we've managed to recycle our capital at a time where no equity capital was truly available in the marketplace for us. And then the final part of that jigsaw comes to the liquidity. So we sit on a wonderful pile of cash. And obviously, the treasury team have done a really incredible job in terms of ensuring that we have that liquidity available to us so that we continue to operate on a day-to-day basis. So -- and Warren will talk to that a little bit later on. Again, now we go into property-specific metrics. We still remain with a 0% vacancy, and that really does talk to the underlying quality of the real estate. And Riaan will take us through the detail of some of the transactions that have been concluded this year, some of the renewals and the ability for us to potentially have tenants that decide to move on from our real estate, but because our real estate remains relevant, we continue to be able to refill it at market-related rentals, which obviously have moved in the right direction for us in recent years. We spent ZAR 3.7 billion on acquisitions and developments in the year. But obviously, -- that goes hand-in-hand with ZAR 4.8 billion in disposals. And notwithstanding that recycling of capital, we come out at the back end of the year with a portfolio of ZAR 28.4 billion, which is slightly bigger than it was last year. And again, talks to the team's ability to be able to make strategic decisions in terms of what real estate to sell and where to reinvest that money into new product. And then the final element, as I said earlier, the ESG element. So we've broken the 20 megawatts of capacity. And obviously, that is incredible. But this didn't happen overnight. I mean, we started the ESG journey probably 5, 6 years ago, and it's been a process, and it's been a learning process. And obviously, the market has come to us. And also legislation has come to us, which has made it slightly easier. And we see this as a very, very important segment of our business going forward. So let's talk about strategic focus. In South Africa, we sold about ZAR 1.2 billion of our portfolio. The assets that were generally sold were some of the slightly older assets. And we've always spoken to the fact that the asset still were relevant in today's world. But the ability that those assets potentially have of creating disproportionate rental growth over time is probably lesser than would be in a brand-new ESG-compliant building today. And notwithstanding the fact that we sold ZAR 1.2 billion in a very difficult market, we basically sold it at book, which is fantastic. We've got another few assets that will transfer basically before interims in August. And we've identified probably about another R1.8 billion of assets that we will look to sell out of the SA portfolio in the coming year. The U.K., we disposed of 4 assets, GBP 90 million. So those were obviously Hinckley, which is the Tesco, which is the very first building that we bought when we moved into the U.K. in 2016. And the 2 Peterborough assets, DSV and Coloplast, which were actually the assets where we were introduced to the Roxhill team, which then became Newlands. So obviously, a very historic legacy assets, which were important to us. And then we sold the DPD in Swansea. So all those assets were sold, and these were sold at discounts to book. But the book that was used in the comparison, obviously, was booked -- well, the 2 Peterborough assets were sold at discount to book, should I say. And the comparison, obviously, was off the highs off the back end of 2022. So probably not really a good comparative base because the market turned very dramatically against us, as you all know. I mean, this time last year, we were presenting the fact that we had lost about GBP 100 million in value on our U.K. portfolio at the time. So we were very pleased with those sales. And the intention is to retain the rest of the U.K. stabilized portfolio. So we will -- if the right offers arrive at the right valuations and the right price and should we have areas where we can deploy that capital, which will give us better returns, we will certainly consider selling assets on a piecemeal basis. But the intention is to retain the U.K. portfolio. As we said, cross-currency were terminated last year. I think some of the interest that was generated in the cross-currencies, that has not been distributed, that has been retained. And effectively, what we have done is we've removed the synthetic gearing, and we have given the benefit of the rand weakness that has been experienced in the last year to the shareholder. I suppose that can be seen in the valuation of the U.K. portfolio in as much as the U.K. portfolio was up just shy of 3%. But in rand terms, it was actually up about 10%, and that really talks to the currency. The ENGL platform, so the Equites Newlands platform, we have spent the year obviously trying to sell it. We spoke to a lot of different parties of capital that were interested. We probably couldn't have picked the worst year to try and sell a development platform than 2023. But notwithstanding that, we've survived the back end of 2023. We managed to get Newport Pagnell spade ready and we managed to do a deal with Panattoni, which obviously is going to generate, apart from obviously giving all our working capital back, but also generate some meaningful profit for us, which is great. We have a couple of other of the land parcels, which will be, in our opinion, probably spade-ready if everything goes according to plan, let's say, by the end of the first quarter next year. Planning remains complicated in the U.K. It's tough. We believe we've got a team that knows what they're doing and have got the ability to get that planning through. And we will have some successes. They won't all be successes, but we will have some successes. And as we bring those successes to market, Equites will not be looking to develop those platforms, but we will be looking to either do forward funding deals with speculative liquid capital in the U.K., which there is plenty of or else potentially just outright sales of the land. And in doing so, the intention obviously is to maximize the value for the Equites shareholder. And then the final element, obviously, is the alternative revenue, which comes to the solar side. And we continue to deliver more and more solar. The one benefit that we have with our solar obviously is that it's inside the urban edge, so the transmission of it to another consumer and the process of wheeling becomes that much more viable and that much more efficient. And having concluded our first wheeling project, it will be, in our opinion, the first of quite a few to come and obviously, very excited about the extra revenue that this particular part of the business can deliver on. Let's talk maybe a little bit to the various markets in which we operate. First one, obviously, is SA. The vacancy level of A-grade facilities in Cape Town, Joburg and Durban remain -- in terms of ESG compliant, top quality real estate remain at all-time lows. There really is very limited availability. I mean in Cape Town, nothing, Durban, almost nothing. And Joburg, maybe a little bit more than the other 2, but still nothing to write home about. And what we're seeing is more and more operators -- to remain competitive in the 22nd century, if you like, you certainly need to have real estate that affords you to be efficient and to cut out costs and to get your orders out on time. As I mentioned earlier, everything is in the delivery, everything is ensuring that you get the product out. Over the last couple of years, we've seen 30% increase in rentals, and we are negotiating rentals now at R85 and even north of ZAR 85 in certain locations. And obviously, this bodes well for the existing portfolio. And does that mean that we won't have reversions in some of our properties? No, it doesn't. I mean there will be some reversions. And -- but we own those reversions. We still feel that the real estate is high quality, but ultimately, a 10-year lease, which has been escalating between 8% and 8.5% will suffer some reversion. The positive thing is that the reversions that we were looking at maybe 3 years ago are going to be significantly less than what they're going to be in reality. Market rentals are expected to continue to grow. So the research that's come out of SAPOA is that there's an expectation in our sector that, that will grow at about 5% this year. And ultimately, this is also as a factor of constrained existing A-grade supply, but also the fact that we have seen noticeable construction inflation. Now please understand, within the realms of developing a logistics warehouse of, let's call it, institutional grade, which is where Equites operates, about 45% of the cost if you exclude land, is made up of steel or steel-related products. So any movement in that steel price is going to have a notable impact on our construction costs. And -- the benefit of having very low vacancy, obviously then translates into the fact that very few developers or no -- I don't think any developers are going to do developments that are going to result in them making a meaningful loss on that development. And consequently, what we're seeing in the marketplace is it's not just Equites that's pricing developments at ZAR 85 or ZAR 90 a square meter, it's that's where the market is. And obviously, that bodes well for the market. And because equity capital has become so scarce and so valuable, what we're seeing is also the quantum of speculative build that's happening in the marketplace now, having been significantly reduced. That can change. And as supply side obviously remains tightly constrained, there will be players that may decide to take a little bit more risk into their portfolios. But as we stand at the moment, there is very little supply side on the speculative side. And -- if we go to the U.K., 2023 was an interesting year in -- I suppose we came out of 3 years of COVID, where I think we had a record year of take-up of about 55 million square foot, which is an all-time record. And we've sort of settled now basically back at plus/minus what we would define as pre-COVID levels of approximately 30 million square foot. But notwithstanding the fact that we have seen some notable increase in vacancy in the U.K., the vast majority of it is space that has been returned. So it's not first generation space is what the English would define as gray space. And what we're seeing is notwithstanding the fact that the gray space is coming back, some of the gray space obviously is not probably suitable to be re-let at market-defying rentals in an ESG world that we currently live in. But the consequence of this constrained supply and especially in certain locations in the East Midlands being quite a strong location, is that we still saw a market rental increase of circa 7% in the year. I'd say prime logistics yields in the U.K. at the moment, somewhere between 5% and 5.25%. Again, as I said earlier, there is a mountain of capital that's wanting to buy and just struggling to be able to press play in terms of deploying capital and the general feeling in the U.K. at the moment is very much -- everybody is waiting for that first interest rate cut. And I think when it comes and when the messaging and the signaling around what the potential cutting cycle will look like, I think will have a massive influence in terms of where those yields go. And ultimately, I think if anybody's got illusions that we will return to the 3% yields that we saw during the COVID period, I think that's an illusion. My personal opinion is that we will probably stabilize somewhere between sort of 4.5% and 4.75% on the prime yields as interest rate costs do come off. And I think that rental growth really talks to some of the reviews that we've had. So we've got 8 properties in our stabilized portfolio. Two of them are index linked. So one of them is linked to RPI, one linked to CPI, but the other 6 are all linked to open market value. And the first rent review that came through the system was the GXO in Coventry. And as you'll see there, we got a 39% uplift in our rent. And that 39% uplift in that one property resulted in the whole U.K. portfolio growing by that 5% full year, which is obviously very encouraging for our portfolio, which is so massively reversionary coming through the system. Post year-end, we settled a rent review with DPD in Burgess Hill. Now Burgess Hill is just south of Gatwick Airport on the -- I think it's A23 sort of going down to Brighton from the M25 -- and there, the reversion, we got 68% increase in rental there. And that really is a function of us having been the very first warehouse on that park when it came and effectively rentals in the southeast have actually moved to that degree. We believe that there's probably a little bit in that rental and Panattoni have bought the rest of the park that we have DPD Burgess Hill in. And their asking rentals there are between 1,650 and 1,750. And if history is anything to go by, Panattoni would tend to stick to achieving their rentals rather than discounting to get letting because valuation is much more important than income to them. And the consequence of which is what I can tell you is that the transaction was done at a market rental of [ 14.35 ]. So you can see that notwithstanding the fact that we've just done that rent review, there potentially within the next year, there will potentially be another sort of north of 10% in that rental already. And then if you look at the rest of the portfolio, we're currently in negotiations with DHL in Reading, and we're currently in negotiations or we're starting negotiations with Puma up in castle for Donnington. We've got DHL in Leeds that's going to be coming up for review next year. And then we have Amazon, Peterborough and Roche in Burgess Hill to the 2 index linked, which will also be coming through in the next 18 months. The consequence of that is that if we were to apply what we believe are market rentals as per the research that -- we tend to follow Kevin Moffitt's research at Savills quite closely. If we were to look at his evidence, then the reversionary yield on our portfolio in the U.K. at the moment is probably about 6.1%, which obviously speaks to the quality of that portfolio and the fact that the next couple of years ahead are going to result in meaningful rental growth coming out of that portfolio. And then finally, the development world. And as I said earlier, we will not be funding any developments in the U.K., but we are very happy to be involved in forward-funding developments with capital, and that will result in Newlands doing the development on behalf of the capital and us basically in our joint venture benefiting together out of the process. You can see that we've completed a few developments in the pipeline post the period. I mean, obviously, the Encore building was [ PC'd ] about 3 weeks ago. The Riverfields Shoprite was PC'd last week and Meadowview site 3B and 9 and 10, they will only [ PC ] later in the year. Those are basically 3 buildings that we decided to develop speculatively on the basis that we've got no vacancy in the portfolio. What's positive is it would seem that we've got a heightened level of interest on all 3 of those buildings, and there is a very strong possibility that all 3 of those buildings may even be let prior to PC. So -- and that really is, I think, a function of the fact that they are extremely well located in the Meadowview precinct, which is just off the M3 on the London road off ramp, but more importantly is the fact that there really is genuinely very little vacancy out there. In terms of the pipeline that is coming through in the RLF joint venture, RLF being the joint venture with Shoprite, retail logistics fund, as we call it, we have PC'd already the Centurion upgrades that were done to the property that was -- that we already are 50.1% owner. And then the Wells Estate down in Gqeberha, we bought the existing, which was a very small, sort of, 10,000 square meter fresh mark part of that property on a massive chunk of land, and we are basically upgrading that facility to become a state-of-the-art Shoprite facility to service the Eastern Cape. And if the other -- if there are other developments and the ability that their supply chain has given them to win market share, well, I think the years ahead in the Eastern Cape will obviously be a very rosy years for the Shoprite team going forward. That particular facility will be just shy of 100,000 square meters, and we're expecting it to be complete sort of late August with effectively the rent -- the lease agreement basically commencing 1 October, potentially delayed into 1 November depending on PC being met and obviously -- so where do we remain? We remain highly positive on the development front in SA, the level of interest and the level of inquiries that we are currently achieving are at record levels or levels that we've only seen at times when the market was really, really humming, which bodes well. It bodes well for our land holding. We currently have approximately 40 hectares of land. And ultimately, if you want to do these deals, you need the land. Without the land, you're not in a position to be able to negotiate those RFPs that are coming out. So really, really, really positive and very excited about the year ahead, actually, the next 2 or 3 years ahead on the development front. That's me for now. So again, thank you -- thank you for listening. I'm going to hand over to Riaan now who is going to take you into a bit more of the detail of what's actually happening on the portfolio and the very specific property fundamentals against it.

Good morning, everyone. I think these property fundamentals is a reflection of the excellent health of our underlying business. The fundamentals are the product of a continued focus on always improving our underlying portfolio and it's that portfolio and the quality of it that gives us a sustainable and predictable rental growth. It also enables us to access the cheapest possible debt on the debt capital markets. And we're very proud of the fact that by year-end, all 67 of our properties were fully let. I think a great focus of the Equites team has always been the weighted average lease expiry profile. When it's just shy of 13 years, it means that you only have a limited number of leases come up every year. Now imagine when you -- if your lease expiry profile is 4 years and you've got 80 properties, it means that you've got 20 leases to renew every year. And the approach with which you'll go into negotiation will be one of slight trepidation because you can't be bold, whereas when you've got 3 or 4 leases expiring, you can be bold and you can make sure that you achieve a proper open market value for the property because 1 or 2 vacancies over a 70 property portfolio will not have a significant adverse impact. Importantly, this well will increase to around 15 years when the outstanding Shoprite developments come on stream this year. And you also see that our in-contract [ SA ] escalation stands at 6.2%. In the U.K., we've had a like-for-like rental increase of 5% as a result of the very positive Coventry renewal. And as Andrea shared with you, notwithstanding a ZAR 4.8 billion disposal program, we've still increased the portfolio value by [ 33% ]. And those disposal proceeds were invested in brand new ESG compliant assets that will be relevant for the next 20 to 30 years. Our A-grade tenant component is always increasing, and it talks further to the strength of the portfolio. We've decided to share the minutia of our disposal program with you. As Andrea indicated, we sold ZAR 4.8 billion of assets over the past financial year, ZAR 1.2 billion of assets we're disposing SA over 6 transactions. The disposals were in line with our book value, which also confirms that our independent valuations are a true reflection of open market values. In the U.K., similarly, we disposed in line with the book values and the transaction that's not listed there is the disposal of the land on the forward-funding transaction with Panattoni that Andrea referred to earlier. We will continue to -- with our disposal program in the new year. Just a quick recap on the criteria that we apply in selecting potential sale assets. Firstly, the older noncore ones. Secondly, those assets that are not in industrial parks. And then very importantly, those assets that we believe will not meaningfully contribute to net asset value growth. Those are always the assets that we target first. The portfolio split is ever improving. Only 1%, as you can see are now made up of noncore assets with 77% of our assets being pure logistics assets and 8% in the held-for-sale category. Also very important, 6% of our portfolio value is land. Now those of you who followed us over the past 10 years will remember that we started with a very small R1 billion portfolio, which we've now grown to over R28 billion. During the past 10 years, we've only had 3 significant acquisitions. The Meadowview in 2015 acquisition gave us some important scale. We did about ZAR 800 million acquisition of some assets in Waterfall. And then we bought Pick-n-Pay in Durban, Nestle and [ similar ] in Johannesburg. Our experience has been that when you acquire assets that always come with legacy issues and you end up spending a lot of money in implementing the acquisitions and also getting maintenance up to a standard, whereas when you grow through pre-let developments, you have all the benefits associated with the tenant that has invested time and effort and money into the new facility. So the facility is 100% suitable for that tenant. It's at the back of a 10-year lease and tenants normally have 20 to 25-year business plans associated with those properties because they invest heavily in them. It is normally larger facilities where several leases have been collapsed and your transaction costs are much lower. So we through our experience, we've seen that where we've developed this also the properties that contribute the best to our net asset value growth. So a very, very big part of our strategy going forward will be to continue on this path. And for that, we need land in key nodes. And we'll also later on talk you through how we've seen the benefit of the growth and value of those portfolios in those nodes. Our South African renewals is the next slide. Now as Andrea intimated, it's obvious that if you have a 10-year lease, staying at 8%, and there will be some reversion at the end of the period. FY '24, we had 3 renewals. And by and large, we ended up in line with the previous rentals payable. I would like to point out that the waterfall and Meadowview properties at ZAR 82 and ZAR 72 are under-rented as a result of 2 lease -- 2 short-term leases we concluded under -- over the COVID period. There were 3 year leases where the tenant has the right to renew at the [ exigent plus escalation ]. So we can expect those rentals to increase at the next expiry, so there will be some good rental growth there. And then importantly, the renewals that we've done in respect of the current year. Now you'll all agree that there are some reversion. But the encouraging part is when you look at the levels at which those renewals took place -- the facility in Meadowview was renewed about 12 months ago at a very healthy R92 a square meter. Now that facility isn't a brand-new ESG compliant box. It's an older facility with slightly less height. So that's indicative of what our premium facilities in Meadowview will achieve in the coming period. Also, I mean, the Waterfall Industrial Estate is a world-class environment and multinationals are really keen to stay in that node. And when you look at those renewal levels for facilities that have got a large warehouse component, it really bodes well for the future of [indiscernible] particularly the node we've selected. This is an interesting slide, and it's the first time that we've actually shared it. And if you -- I want to first refer you to the right-hand side, the Riverfields and Jet Park portfolios. Now those were piece of land that we bought. I mean, we bought a building at Jet Park. We knocked it down and we created a portfolio of brand new ESG compliant buildings, and you can see the valuation increase in respect of that park. And similarly also on the R21 with Riverfields, I mean, brand-new facilities led to blue-chip tenants on long-dated leases, and that's the contribution that we want to our portfolio uplift. The Retail Logistics Fund also very positively obviously creating new facilities for Shoprite, will stand as in good stead for a very, very long period of time. And then our Meadowview Business Park, the growth slightly lower, but it is a result of the fact that many of those buildings were acquired in 2015, they're slightly older. And we've added some new buildings, but obviously, the greater majority of the buildings are slightly older. I think this also reflects the importance of land holdings because going forward, we would like to create more of these parks that will really give us the growth going forward and ensure that our portfolio grows from strength to strength. That's all for me. Laila, I think it's your turn.

Okay. Thank you very much. I like the way Andrea started his session off by asking what did we hope to achieve during the year. And I think from a financial perspective, I'd like to do the same. So what did we hope to achieve? We said we wanted to close out all of our cross-currency interest rate swaps. We presented guidance to the market, and we said we wanted to come in somewhere between 130 and 140. We said that we really wanted to prioritize balance sheet strength despite the fact that we had a big development platform. We said that we wanted to show some NAV growth as we expected U.K. yields to start stabilizing. And then lastly, we wanted to manage the cost of debt. So how did we do? I think just to start off, we came in at 131.126, which is in line with guidance. We maintained our 100% payout ratio. Our balance sheet strength, we still have 39.6%. So we're under that 40% mark, which seems to be some sort of golden rule, but we're very comfortable with where we're at. We have ZAR 2.3 billion in cash and undrawn facilities. We showed that NAV growth, 3% NAV growth from Feb '23 to Feb '24. We concluded ZAR 4.8 billion of disposals during the period. And I think Riaan spoke about it, but I think just to reiterate how difficult it really is to enter into these negotiations and to conclude them within a 12-month period. And then lastly, just our funding costs have come down from August. So we're at 9.14% in South Africa and 3.94% in the U.K. I'm going to leave this for Warren to talk about because I think it's been a phenomenal year from a treasury perspective, and we'd like him to talk about that in his section. Okay. So if we look at our distributable income statement, I think the first line really is just looking at the net property-related income. Now we had like-for-like rental growth of 6.4%. However, if you look at our net property related income, which is the top line, minus the property and operating expenses, we get to the growth of 4.6%. So there was a degree of non-recoverable expenses for the period. Some of these relate to legal and professional costs relating to those properties. And then there were vacancies in the period. And naturally, when there are vacancies, there are going to be non-recoverable expenses. So that's what took us to the 4.6% growth in the net property-related income. From an administrative expense line item -- this is the distributable portion of our admin expenses. Now there's been quite a jump from 23% to 24%. But I think we have to paint some color. It was a period of increased legal costs, particularly with regards to the U.K. There were a number of moving parts. We said that we were attempting to sell the U.K. platform. We've embarked on a process with advisers, but at the same time, there was a number of legal and professional costs ongoing. So I think that really led to the increase in some of those administrative expenses. Another element is that if you look at the actual breakdown in our financials, you'll see that the percentage that we've capitalized has decreased significantly. So it went down -- in the previous year, we were capitalizing about 16%. In the current year, we're capitalizing like 10%. And so we believe that this is probably a more sustainable level of capitalization of these admin costs. If we go to below operating profit and we just look at net finance cost, the higher net finance cost is simply driven by a tighter monetary policy during the period, along with the marginally higher cost of debt, which was used to fund developments. So even though our cost of debt is coming off, it's still higher because of the base rates that have been increasing. And then current tax expense and other income, I just want to talk about that current tax expense. For the first time ever in our 10 years, we have a current tax expense in South Africa, which is actually payable. And this is because of that cross-currency income-related or cross-currency interest income, which we are not distributing. So because of that income, we've actually -- it's resulted in an ZAR 11 million tax expense in South Africa. This is not expected to be ongoing. This is non-recurring, a one-off tax expense in South Africa. And then if we adjust for the non-controlling -- sorry, let me just talk about the [ anticedent ] dividend. Again, it's a negative anticedent dividend because of the shares, which we bought back, and then we have the noncontrolling interest, which is predominantly related to Retail Logistics Fund as well as the DSV joint venture with EPPF . That takes us to our distributable earnings divided by the number of shares, and that takes us to our distribution per share. If we look at the bridge, and I think if we look at what actually contributed to the movement for the period, we had a strong like-for-like rental growth in South Africa, which contributed which contributed 6.1 cents to the distribution movement for the period. The U.K. portfolio, as Andrea said, we had an exceptionally positive rent review at the GXO facility in Coventry, which contributed 1.8 cents to DPS. And then I think it goes without saying the biggest detractor from DPS for the period or the DPS movement was the exclusion of the cross-currency interest rate swaps. So in the prior period, we had ZAR 205 million relating to cross-currency interest rate swaps, which we have simply -- no longer forms part of our distributable income. So that's a ZAR 26 cents decrease in the distribution per share. The next item is just the higher interest rate and the rebalancing of the U.K. LTV. Now I just want to touch on that a little bit and explain in detail what we did. When we disposed of U.K. assets, after we had settled any debt associated with those U.K. assets, GBP debt, what we also did was we looked to settle GBP debt that referenced the South African balance sheet. So there was a facility with Standard Bank and a facility with RMB, which we looked to close down. At period end, we only have one of those facilities left and it's at a reduced amount. So there's a smaller, standard bank facility to the value of GBP 17.5 million, and that's the only GBP debt, which still references the South African balance sheet. Andrea did touch on it, but now our U.K. LTV sits at 45.8%. And we have operational variances. What this refers to is really the short-term vacancies during the period as well as the associated costs with those vacancies. While a property is vacant, we're not recovering the rates and taxes and other operational costs that may be associated with it. Then the first year dilution impact of Shoprite. We all knew at the time that we concluded these deals at 7.75% or 7.8% that these deals would be dilutive in the first year, and this is that impact coming through. And then lastly, just the once-off Forex loss relating to the write-off of FX protection relating to CCIRS. So what we did was we knew that these CCIRS were going to mature, where we spotted moments of particular strength, we looked to enter into positions which would hedge out or which would provide us with the ability to hedge out or close out those cross-currency swaps at better Forex rates. So that detracted a further 3.28 cents from distribution. And then there were some other items in there, and that takes us to our 131.12. Now you can do this some and then you can say, 131.12 add back the FX relating to the CCIRS and add back the cost of rebalancing the U.K. LTV and add back the CCIRS and then you can get broadly flat. And I think that's sort of the sense check we wanted to do. We made a very strategic decision to eliminate those cross-currency swaps, and that has resulted --- or the majority of what's resulted in the decline in the distribution per share. From a balance sheet perspective, the one number that I want to touch on is that investment property number. Now when Andrea spoke about the property value, we speak about investment property, properties held-for-sale as well as trading property. I want to focus on that top line a little bit, just that investment property. It looks as though we've done almost nothing for the period. It looks like it moved from 24.5% to 25.3%. But there's actually been a ton of movement for the period. So what has happened? We transferred ZAR 4.3 billion from investment property to investment property held for sale. We had fair value uplift of about ZAR 550 million on the portfolio. Furthermore, we had Forex and some other movements, which translated into almost ZAR 1 billion movement on that portfolio. And then -- in addition, we had a disposal which wasn't transferred to held-for-sale, that was about ZAR 200 million. So those are some of the key movements which actually take us to that movement of 765. So even though it's only 765, that's moved, there's a number of key moving parts within that. I think another point just to highlight is looking at that properties held-for-sale, what happened was we started the year with ZAR 2.3 billion. We transferred ZAR 4.3 billion into that -- those assets held-for-sale. We sold ZAR 4.5 billion, and that's how we arrived at that ZAR 2.1 billion at period end. The trading properties, the balance has remained relatively consistent. We sold one piece of land in South Africa, which was classified as trading property before. That's the Sakon piece of land. And then what's sitting in there is largely related to Basingstoke. Cash and cash equivalents at period end, it was ZAR 493 million. We always try to keep this balance as lean as possible. And so sitting on ZAR 493 million was as lean as we were willing to take it, but you have to take that into consideration, along with the other undrawn facilities, which takes us to that ZAR 2.3 billion in cash and undrawn facilities. And then just if we move over to loans and borrowings, the loans and borrowings increased by ZAR 891 million, in line with acquisition and development spend. This was really the debt that we needed to draw down in addition to the disposals or the proceeds from the disposals during the period. Also, there were some timing differences. So whilst we were waiting for proceeds from a certain disposal, we may have had to enter into short-term loan agreements or draw down on additional debt funding just to tide us over for that period until we receive the proceeds from disposals. And then the share capital, this increase, there was a land acquisition in March '23, where we bought a parcel of land in Riverfields. So that increase, that was ZAR 196 million worth of shares, which we issued, but this was offset slightly through our share buyback program, which amounted to ZAR 75 million over the period. Okay. The average is actually quite simple this time. But what's really nice is that we're starting to see growth in both the SA and the U.K. portfolio. So the SA portfolio increased by 4.2% on a like-for-like basis. The U.K. portfolio increased by 2.1% on a like-for-like basis in GBP terms. As Andrea said, if you were to include the devaluation of the rand over the period, that takes it closer to 10%. And something that's quite interesting is on this U.K. portfolio, we've been doing a lot of work just around where rates are in the U.K. and what we expect this portfolio to do going forward. So there's around 50% chance of rates being cut in June with another 50% -- I think it's 57% and 48% probability of the rates being cut in June and August. So if you look at it, there's almost 100% priced in that it will be at least a 25% drop within the next 2 quarters. I think the Bank of England said that we can expect the rate -- there's no decisiveness on when it will happen, but they do expect that it will have to be more aggressive than what markets are pricing in right now. So I think in terms of where U.K. valuations are going, we can expect those to be fairly correlated to where rates or rate cuts or in line with rate cuts over the year. Then if we just look at FX, now this number is a little bit jarring, if we look at where the currency actually went. The currency actually depreciated from ZAR 22.50 at Feb '23 to around ZAR 24 at Feb '24. But what this number includes is also the closing out of those cross-currency interest rate swaps as well as the translation of the GBP-denominated debt. This actually offset the currency -- the positive currency movement on our U.K. portfolio. So we've lumped all of the currency or the FX in one line. Then there were some other items which added 0.2 to our NAV, and this is largely the non-distributable CCIRS income, which was offset by some legal costs and other capital items in the U.K. And that's how we arrive at our NAV of ZAR 17.14. The LTV bridge, again, fairly simple, not too many movements for the period. But I think if we just look at U.K. disposals, which was a big number. that reduced our LTV by 6.7%, SA disposals reduced our LTV by 3.3%. We spent a fair amount on SA development, which was -- it increased our LTV by 8.8%. Then valuations, which is quite nice to actually see this coming through because after a period of where valuations have been relatively stagnant, you can see the power of valuations and how that actually reduces the LTV by 2.3%. The FX loss that increased LTV by 1.6%. And then there were some other items, which increased about 1.7%, and that takes us to an LTV of 39.6%. So again, if you look at 39.7% at Feb '23 and 39.6% at Feb '24, it seems as though we've done nothing for the year. But obviously, there were a number of movements throughout the period. And I think this shows it quite nicely. The last thing I just want to take you through is what we did was a learn to-value headroom. Now we've spoken about and if you've had a chance to look at our results, we still have a fair amount of assets which are held-for-sale. We also have additional assets, which we've earmarked for disposal in South Africa and the U.K. So what we've done is we've said, our LTV right now is 39.6%. There are some disposals in the first quarter of '25. One of them have already transferred and there's 2 which we expect to transfer imminently. That will reduce the LTV by 0.8%. Then there's SA disposals of about ZAR 1.8 billion, which we've earmarked for the entire period of FY '25. We expect that to reduce our LTV by 4.1%. And then there's some U.K. asset disposals, which are really the assets relating to the HSBC portfolio, which we may look to sell as we require capital. That would further reduce the LTV by 4.4%. Then the contracted development spend that we have for the period would increase our LTV by 2.1%. And then importantly, if we were still comfortable at that 40% mark, there's still 7.6% of headroom that would take us to that 40% mark. And I think that's just to show how we plan our business going forward. We are very proactive in terms of identifying assets for disposal and in terms of just really making our balance sheet as robust as possible to cater for the developments, which we still fully are committed and invested to as a business. I'm going to hand over to Warren, our Treasurer, because I think these are some highlights, which he should really take you through. Thank you.

Thanks, Laila. Good morning, everyone. So yes, as Laila said, some really good results that we've had this year. I think with the equity markets being effectively closed, especially for REITs, the debt capital markets have been really important. And we're not the only beneficiaries of that. There's been a number of counters out there. But really, it really has played into our hands over the past year. You can see that we raised ZAR 1.25 billion in this past year in 3 and 5-year cash that was through listed debt auctions where we came to the market twice during the year, and that's something we remain committed to. So all the debt investors will be aware of that and we'll be coming to the market again later this year. We'll be pushing that out slightly with the elections on the 29th of May. We'll probably be looking around sort of early to mid-July. One of the key elements that was really shown for Equites, I think is the 7-year debt issuance that we did right at the end of the year in February, where we raised ZAR 250 million in 7-year debt through a private placement. And for me, that really speaks to the debt investors' confidence in Equites and the confidence they have in the outlook and the strength of the balance sheet. So really something -- a key element that we'd really like to shine up there. Further to that, we actually raised an additional ZAR 400 million after year-end. We did that in April. So ZAR 650 million in the 7-year space. We've never gone that far down or along the yield curve. But it speaks to that long WALE that Riaan was talking about earlier and really the longevity of our business. A couple of the other items up there, we've already spoken through the debt maturity increasing to 3.7 years. Just to point out, that doesn't include the R400 million of 7-year debt that we raised in April. So really, we're extending that debt maturity even further. Lastly, on that slide, you'll see the credit rating of AA- from GCI. That was from July last year. We'll be going through our renewal process shortly, and we'll have a rating from GCI in July this year, so in about 2 months' time. All right. The next slide is a little bit noisy, so I'm going to carefully talk you through this. So you'll see it's the cost of debt for both South Africa on the left-hand side and for the U.K. on the right-hand side. The dashed red line is Equites' cost of debt in South Africa and in the U.K. The dotted gray line is the reference rate. For South Africa, that's 3-month Java on the left-hand side for Sanya in the U.K. on the right-hand side. The vertical bars are the spread over the reference rate. So again, the spread over 3-month Jibar in South Africa or over SONIA in the U.K. Now what you'll see is a convergence of our cost of debt and the reference rate. And you'll see that flattening out. And in actual fact, as Laila mentioned earlier, our cost of debt has actually decreased from August, which is something really positive. And that's a result of a couple of factors. But one of the key elements is the fact that we had higher costing debt, so that's spread above the reference rate that was maturing. That's sort of 3- and 5-year debt that's matured, and we've been able to replace that with much cheaper debt. So we're well hedged. 83% of our debt over 1 year is hedged. And with those spreads coming down, it's enabled us to reduce our cost of debt. I know some of the analysts out there look at a lot of counters and there's been talk about refinancing risk, which is when your debt matures and you have new debt coming on that's more costly and it hurts the company, well, you can see that we're well protected against refinancing risk in this regard. This slide, there's a lot of information on here. It's our treasury dashboard. These are numbers we look at all the time. Most of those items we've already spoken about. So I'm not going to go through everything in there. Obviously, Laila went into detail on an LTV that's come down from February last year to 39.6%, which is a great result. One of the key things I do want to talk about, so both Andrea and Laila mentioned, are ZAR 2.3 billion of cash and undrawn facilities. Now what's interesting to note is that our debt maturities over the next 12 months is actually ZAR 2.3 billion as well. So what that means is we have sufficient debt facilities on hand and cash on hand to repay all of our debt maturing within the next 12 months. That's a really strong position to be in. Now that's not to say that we are going to do that, but we have that capability should we so wish. It really demonstrates a strong balance sheet. Now we do have -- within those R2.3 billion of maturities, we have ZAR 500 million of listed debt that's coming up for maturity in June, and we'll be looking to come to the market, as I said, in a debt auction of our DMTN program. The last 3 items on there, those are all internal metrics and happy to discuss those with you off-line. Right. Now I can get on to the really, really interesting elements of the business, where we've really invested a lot of passion. And it really speaks not only to the strong ESG team that we have in the business, but really the whole of the organization, the passion for ESG. And I'm going to go through a lot of the sustainability elements. So there's a couple of effects up here, and I want to run you through those. So 9.4 million megawatts is what was our installed solar capacity at the end of last year. That's increased to 20.2 megawatts of installed solar capacity over roughly half our properties. You can see that's increased from 19 to 29 properties and the percentage of renewable energy from 11%, almost doubling up to 19%. So it's really been a focus that we've put into the business. What it's allowed us to do is produce 21.5 million kilowatt hours of renewable energy, which is an extraordinary figure, and that's only going to increase. You can see we're only halfway through the number of properties. So that really is a number that's going to increase and we can play a major part, not only in South Africa, but specifically for our tenants and allowing them that access to renewable energy. I'm going to come to the last point in time because I wanted to just go into more detail on what Andrea mentioned earlier, which was the first energy wheeling project that we concluded. So the city of Cape Town had a pilot project. We stepped forward to that. What made it a little bit more complex was the way we went about doing that. So as I said, we signed up with the city of [indiscernible] and we wheeled energy from one of our new warehouses in Parow and Cape Town to the building in which our head office is located in the foreshore in Cape Town. Now we obviously don't own that office building. So it meant going through a tripartite agreement between the city of Cape Town, us as the generator of that renewable energy and the owners of that building as the off takers. What that has done is really given us an incredible amount of expertise and experience, and we can now roll that out across the country, obviously, through [indiscernible] the municipalities in which our warehouses are located and again, in Cape Town. So that was just the first phase. It was a small part. We actually are already on to the second phase of that [ para ] where we're increasing the energy that's being produced and pushing it through to that 4-shorebuilding. So a fantastic achievement by the ESG team in that regard. So I'm just going to page through my notes quickly. And then one of the other elements -- and our legal team have worked really hard on, this is our green leases. So this is aligning us with international standards. There's a couple of other purposes. It solves for us or brings to our attention, and that is we're able to bring in that information. That allows us to better report our Scope 3 emissions. And it also, as we collate that data from the tenants, we can go back to them and share that information and evaluate them on a -- with their peers and say, "This is what you can do to improve your energy consumption." So it's not only electrical energy, it's also waste and water usage. So a really fantastic element that we've brought into our leases when we've done renewals of our leases and new developments. So all of that has meant the world has taken notice, right? So we have put forward for green building certification, 650,000 square meters of GLA for green building certification. As you all know, our base build incorporates the IFC's Edge green building certification and IFC awarded us with an Edge Champions Award, which is a global award in recognition of the amount of Edge certification that we've done. Further to that, we also use Sustainalytics who do our ESG measurements, and they do a scorecard for us and evaluate us year-on-year. We've done so well in that regard that Sustainalytics presented us with awards for top-rated company in ESG on both a regional and an industry basis. So again, fantastic achievements in there. So we're not resting on our laurels. What are we going to do going forward? Well, that's one of the elements there is the fourth point on that slide, which is speaking to water usage. We suffered a couple of years ago in Cape Town. I know the people in Johannesburg are struggling with water availability. We have a number of elements that are already constructed into our developments, JoJo tanks and plumbing and so on, that is a ready future-proofing. But what we're doing is going one step further with constructed wetlands where we can recycle both gray and black water in our buildings. So this is really something that we're excited about. It's going to make a difference. Riaan spoke that to that park environment in which we're looking to develop. And what we can do is construct these wet lands within those parks and recycle. The figures that we've got at the moment is up to 70% of that water usage can get recycled. There's 2 other elements that I just want to mention about our progress going forward, and that is Edge also has -- the way you certify the building is you can do it on a net zero, essentially, net zero carbon basis. We've already achieved that with one of our buildings. We're working on 2 at the moment. So we've not only progressed to the Edge advance we are now going to edge net zero, which is a fantastic achievement and again, highlights our commitment to this sustainability sphere. In addition to that, we're also looking at the SBTi net zero approach. That's the science-based target initiative, and we're looking to go net zero by 2040. So wonderful commitment there from the business. This is -- it's fantastic achievements that we've accomplished. We have an expert in the business, our ESG officer, Irshaad Wadvalla. I really encourage you to reach out them, speak to him about this in more detail, especially if you're looking at warehouses and so on. And then also to look at our sustainability report that will be coming out shortly where we'll go into more detail about the -- the social side and the G, where we've got enterprise and supplier development. We've got our learnership program. We've got bursaries. There's a lot of detail. I just don't want to go into all of that. It's been a fantastic achievement for the year. Andrea, I'll hand back to you.

Thank you. So I think the ENGL platform obviously remains a point in our business, which was entered into on the back of yield compression in the U.K. through the late-teens and then into 2020 and '21 and obviously hitting a high in 2022 in terms of valuation and what yields were being achieved in the sector. Equites obviously wanted to be a meaningful player in the U.K. At the time we had meaningful resource to play there. But ultimately, we needed to create value for shareholders. And we entered the joint venture with the Newlands team. And as you can see, we've -- between being acquiring and taking options on various sites, we ended up basically in a position where we had 10 sites available to us, as you can see, the vast majority of them being in the East Midlands. And within that context, you can see that we have 2 sites that have got planning and are currently going through a process of getting them 100% spade ready. That being Coton park here in Rugby, and we hope within the next -- probably a couple of months to be able to announce a deal on that particular site. And then up at number 2, we have Junction 24, which is basically adjacent to the very successful SEGRO-East Midlands Gateway project. And some of you may have been on that roadshow with us a couple of years ago where we actually went into Gateway. Gateway has been massively successful. And this location, obviously, with East Midlands Airport, which is the only 24-hour airport in the U.K., and it's the second biggest cargo airport in the U.K. after Heathrow. So as you can understand, over and above that in the East Midlands Gateway precinct, they created a rail side as well. So containers can be effectively brought up from Felixstowe into the rail side. And this area on the M1, I think, has become a very, very key part of logistics makeup for the future. And we hope to be in a position to be able to announce that probably only towards the back end of the year. There are certain regulations around environmental issues on that site, which have changed in the last 12 months, which has necessitated us to actually go back in to update our EIA. As for the other sites, we have effectively 3 of them coming up for committee meetings during the course of this year. The first one, and obviously, the one that's probably with all of you who had the most press and the most been most spoken about is Basingstoke. And yes, we go again. We're hoping to have a committee meeting towards the back end of the summer. We don't have that date exactly yet, but where things have changed in Basingstoke pretty dramatically is that the special plan for the great amazing Basingstoke area is now incorporating the recommendation that our piece of land actually be included in the employment land category, which obviously is massively beneficial. That process obviously will take a bit of time before it gets adopted. But the fact of the matter is it started going through that process. And the fact that the council is actually now identifying that site as employment land obviously is massively positive for the outcome going forward. That being said, the amount of value that still sits in that land is that Equites obviously is committed to that piece of land. And we do believe that at some stage, I can't tell you when, but at some stage, we will get a planning consent there. The other pieces of land that are coming up for committee meetings, is [indiscernible] #3 over here on the A14. And we're expecting to have a committee meeting towards the back end of June here. And then the other one is obviously [ Goldfarb ] up there and also in June going to committee. So once those planning approvals are done, process will follow and the land will be available for -- effectively for development going forward. I think just to make it categorically clear Equites, I have no intention of putting up any buildings on those pieces of land and the way forward on those pieces of land, once planning has been as achieved is effectively to find capital that is willing to basically take on the expense and the delivery of top structure. And I can assure you there is meaningful capital out there that is basically very keen to get involved on these sites, which obviously bodes very well for us. But at the same time, our allocation of capital will be limited to getting the planning consents over the line. The process of disposal of the entire platform is an ongoing one. We have every interest to ensure that the Newlands as a going concern remains a strong player in the U.K. market. And we are of the opinion that it is not if, again, it is when that a suitable pool of capital will present itself and obviously, relieve us of the process of taking all of these schemes to fruition. The one scheme, obviously, that maybe stands outside of that would probably be Basingstoke and that is as a consequence of the fact that it is the one site where we currently do own a portion of it, it's not under option. But that being said, from a year ago, when we sat down and we went through a process of speaking to significant capital with a view to selling the platform to today, I certainly feel significantly more comfortable with where we are in the process. I do believe that the demand drivers for meaningful sites with planning consent in the U.K., where planning is certainly not becoming easier, certainly becoming more difficult, puts the demand for this very much on many people's agenda. The consequence is that it may not all go on, it may go, piecemeal, it may go one at a time, but invariably aware of the opinion that over the next 12 to 18 months, Equites' position on these land holdings will be significantly reduced, if not completely, completely expanded. And in so doing so, we will create capital, which will be released back to the balance sheet. And obviously, I think a lot of the metrics, I mean, especially with the headroom graph that Laila presented, and we've taken into account zero of the monies that potentially could come out of any of the sales that are here. And that number and the quantum around that potentially could be very meaningful in terms of creating even more headroom. And that's why we're wanting to keep our options open with the U.K. and the HSBC portfolio that Laila alluded to. And ultimately, balance sheet health remains absolutely critical to Equites, but having the nimbleness to be able to maintain on to assets to ensure that we extract the maximum value and I'm talking about stable assets, will also be a function of us being able to realize meaningful capital from this platform over the period of the year. And highlights -- and again, this really, I suppose, it's us sort of being really proud of what we've created of the value that we will be bringing through to the organization over the next 5 to 10 years as a consequence of these developments. As Riaan indicated in his presentation, there's no question that the return metrics over a 5 to 10-year period on real estate that has been internally developed, does provide a noticeably better return on capital deployed into those facilities. And as you can see, the TFG facility, great facility -- I mean, TFG have decided to spend a significant amount of capital in relocating a lot of their warehousing from Cape Town up to Johannesburg. And as you can see on the backside of this scope to actually double the size of this facility, which will invariably probably happen as they continue to grow their business and attain market share. And this facility actually allows them to fulfill not only on a store level, but obviously also on an online level, which is extremely critical. And if you drive past this, you'll see apart from a big TFG thing, you'll see a big batch sign on it, which obviously is their online offering. So great facility. I mean one of the highlights, obviously, a 20-meter to Eve in the middle, and this particular facility has got what we call a DM1 floor, which is a super ultra-flat floor because obviously, you're picking pallets at effectively 19, 20 meters up in the sky. And if you don't have a seriously flat floor, good luck with the forklift, yes. In the background, you will see the Shoprite DC, which is coming up. And as I said, that will be -- is currently just PC, but we'll be going fully live, I think, from 1 July. And again, state-of-the-art facility and obviously, an absolute privilege to be involved with 2 retailers of [ significant life ] within the South African environment, but also 2 retailers that have realized that the investment in their supply chain is absolutely critical to their position of being best-in-class in their sphere of excellence. And to be part of that and to be -- and to have the team be educated at this level where we can then facilitate maybe some lesser organizations that don't necessarily have the budgets that these organizations have, to bring their real estate solution to best-in-class is absolutely critical. I mean I think that takes us on to Jet Park. So this particular site here, it's right on the highway over here. This particular site used to be the Aveng head office, and their park -- yard area, sorry. And as you can see, we've already fulfilled 4 warehouses. We have 2 sites left, can build a 10,000 in the corner here and 7000 one over here. But the one on the right here is the [ Encore ] facility. One at the back is Cargo Compass. And then the one in the middle here is Cargo Compass' hazard store. What is actually very surprising is the amount of organizations that store hazardous goods in just normal warehouses. And only when things go horribly wrong, everybody starts pointing fingers. And I think what we've noticed and obviously, in our engagement with management here is that they made the decision that they were going to operate at that level and offer a service in the hazard space. And what's absolutely incredible is the amount of new business they've won as a consequence of making that decision and providing the facility, which has taken and allowed their existing clients, but also new clients to afford themselves to operate in a truly legal manner and storing sometimes very dangerous and toxic materials in that warehouse. And then we have a finished company Normet in the corner, which provide industrial solutions for the mining industry. And this is a great example of a complete regeneration product. Obviously, it ticks all the boxes and ESG. Every single piece of cementitious product that was on this site basically got crushed on this site. I don't think we brought in any sub-base, which is the cementitious product that you sort of put on top of the soil to compact it and make it super hard before you put concrete on top of it. And obviously, all the ESG practices. You can see the solar panels on all the roofs. But over and above that, the addition of water management systems that will be coming into the park as well, keep us at the cutting edge. Obviously, I briefly spoke about the river fuels one behind the TFG. -- you can see the TFG in the back here, you can see the back line there, just over there. But you can see how much solar panels are going in there. This facility, obviously, is not just a dry goods facility. It is a fresh mark facility. It's got banana ripening chambers. It's got return centers. It's got -- it's basically got all the bells and whistles. And what's incredible is that this will alleviate the Centurion facility from its complete overcapacity at the moment and will allow, obviously, the Shoprite Group to be able to service their stores in the precinct, obviously, when the -- in the catchment area of this facility, which has been relieving a lot of pressure off the Centurion facility and to a certain extent of the Canelands facility in Durban, which is obviously the facility below Canelands facility. We acquired into RLF with about 55,000 square meters of GLA. And this facility now is 102,000 square meters. It's been live since I think, 1 February this year, and it's already trading at capacity. The guys are absolutely motoring and obviously, fantastic that we have, obviously, 20-year leases on these products, and we'll be escalating at 5%, which will create a base and a platform to our portfolio for many, many, many years to come. So before we go to guidance, obviously, I would just like to sort of mention the essence of the organization. We're a small organization. We've got 44 members of staff. The staff are extremely passionate about their sphere of excellence. In the last year as part of the process of ensuring that we create future leaders within the organization, we've created what we would define internally as [indiscernible], which effectively is a devolution of certain powers to senior members of the team, giving them more authority, more autonomy in terms of what they do and how they do and their decision-making processes. So I think as an organization, the health of the organization has never been stronger. I think this comes with a maturity. As I said, it's our 10-year anniversary coming up. We've unfortunately lost some members of staff, which have been massively valuable to us. But we haven't lost them because they've not wanted to be at Equites, it's just that some of them have felt that they've done their 6, 7 years at Equites, and they needed to go on to the next adventure in their lives. And obviously, disappointed to see them go. But notwithstanding that, the caliber of people that we've been able to attract to come in and replace but mainly through having employed also some young people and then obviously, given them the ability to experience things at the highest level. And more often than not, every member of staff that's been told, okay, do you think you can handle it? More often than not, they've all grabbed it with both hands and really -- and taken the business forward. And that as the leadership team, I think we're extremely proud of the team. And the last year has been difficult. After 8 years of being told how wonderful you are to be told how useless you are, it's sometimes -- and some of it we'll take on the chin, but some of it was brutally unfair, but that's for another day and maybe a glass of wine rather than maybe this presentation. But notwithstanding that, to keep the team motivated, I mean, I'm obviously extremely proud of my co-execs, and we've kept the team positive and believing in the story, believing in the mission, believing in what we do, believing in the excellence that we purport to sell. And everything we do also within the communities, we've got our social responsibilities, we're involved with local communities. Every single project we bring on local communities to do work on every single one of our developments. We have a wonderful 1-week program where we bring VIT students and UCT students into the office. We do one in Joburg, one in Cape Town and developed by ex-students effectively that have become members of the team. And what we do is we expose these kids in a week to every element of our business, and the team presents them. And I think the enthusiasm of these young talented individuals that are trying to get ahead in their lives and when they leave Equites after that week. I think it's wonderful to see the effort that they put in and I think what they learn and what they gain and they take away. So all these elements are elements that are developed by the team. They're fostered by the executive, but they're developed by the team that there is a desire to be really good at what you do, but also to share. And in that, I'm obviously extremely proud of the team and as you can hear, and it's been a tough year, but I'm absolutely stoked with what we've achieved. I think what we've achieved is remarkable, has been -- obviously, the rumor mill has been massive, and we've been focused on what we do. We haven't listened to it. And I think today's results presentation really talks to that massively. And on that line, we get a guidance. And our guidance is ZAR 130 million to ZAR 135 million. So it's more or less flat, maybe a little bit up. And obviously, we've given ourselves a tighter range, things that could move this, let's say, to the north of that would be, obviously, if the interest rate cycle was significantly more aggressive than maybe the processes that we've done. We won't feel it all obviously because as Warren indicated, we are extensively hedged, but we will feel some of it. So if that process does become a lot more aggressive than is currently anticipated, it will obviously spin positively for us. Over and above that, the execution and some planning consents coming through on the U.K. business and the return of some of that capital, if it were to happen a little bit quicker than we currently anticipating, there could be some positive spin-offs. Riaan continues to drive the process with Chris and [indiscernible] on the asset management side. And if he manages to achieve an extra R5 a square meter on his run his lease negotiations, than he's currently sort of telling us that he can achieve, then I'm sure all those things will add to it. But I mean, we feel very comfortable at the ZAR 130 million to ZAR 135 million level. I think as I said at the beginning, the story around us wanting to sell the ENGL platform is around the fact that we believe allocating capital to a development platform in the U.K. doesn't make sense for the cost of capital and the capital that we currently -- and the resource that we have. However, we are not leaving the U.K. We are wanting to retain our stabilized assets in the U.K. We think they're fantastic assets. We've got incredible gearing against them. And if anything, we would like to rebuild onto that portfolio going forward as and when necessary capital and appropriately priced capital becomes available to us on which the management team is working extensively to try and achieve. The size and the quality of the portfolio, obviously continues to just go from strength to strength, the recycling of some of the older assets and redeploying that capital into some of the new assets you've seen. And that is an ongoing process, and that will continue over the next 2, 3, 4, 5 years. And my hope and ambition is that I will stand here one day and every single one of our buildings will be sustainably ticked off building. Every single one of our buildings will be generating solar for the benefit of our tenants, but also for the benefit of the environment as best we can contribute to it. And hopefully, the water recycling plants and whatever within the realms of our parks are becoming probably a necessity. And I think we look forward to the unpack of those, and it's really for me also extremely exciting to be do something that no one else is doing. And being on that, that cutting edge is exactly the ethos of Equites and obviously, always wanting to improve and be better. So in conclusion, the assets that we're recycling out, they still retain value, so the people that are buying them, certainly not buying assets that need to be thrown to the wolves, they're quality assets that within the realms of a private portfolio, which most of the acquirers have been, remain extremely relevant. They're still tenanted with very high-quality tenants. And they remain sort of zero vacant. We as Equites, obviously would love to grow the portfolio more, the growth that's coming through and seen in the portfolio, as Laila highlighted, affords us that little bit of extra loan to value and the generation of that capital, which then can be redeployed into the base. But notwithstanding that, we're constantly looking at ways of creating fresh equity, and that is some of the stuff that we've done in the past. We've done a great joint venture deal with the [ impandi ] group. We've taken a 35% stake in 3 buildings. We've done transactions with Eskom Pension Fund and obviously with Shoprite. And there's no reason why we can't do more of that where we retain significant ownership. We retain management. We potentially can start generating a few fees out of that. But in so doing, what we can do is we can release some equity capital, which then we can redeploy into new state-of-the-art facilities going forward. And I think on that note, I think that brings the presentation to an end. Thank you so much for listening. I hope we haven't bored you to tears. We do have quite a few questions, I think, coming through. Maybe we start with the present before we go to the online. [ Naz ] will you - I think [indiscernible] there has got his hand up. Okay. Sorry. Thank you, Lydia. Sorry.

Just a few questions. Just starting with your support, right, for the ENGL sort of planning process. Can you give us a random [indiscernible] for how much you've actually spent this year on that?

Laila, do you want to take it?

So we generally have funding requests on a monthly basis. If we spend a couple of hundred thousand pounds on a monthly basis, that's plenty. So in some months, it will be as low as GBP 50,000. Other months, if there is a specific utility connection or something else that we have to do, it can go up to GBP 150,000 to GBP 200,000, but it's really been negligible.

And then obviously, you've spoken about a LTV headroom, I'm wondering if there is no possibility of changes in your payout ratio for FY '25? I know that wasn't communicated -

Changing the what? Sorry.

Payout ratio.

Payout ratio.

Well, I mean, this is obviously a very contentious issue, and everybody has got an opinion on it. And ultimately, as I've said, I think at pre-close, I think I mentioned it as well. I mean since COVID, when we get to the Board meetings pre interim and pre-year-end, the concept of payout ratio and the concept of the DRIP program is always debated. Up until today, the Board has felt absolutely a 100% comfortable with a 100% payout ratio. My personal opinion is, at the moment, there is nothing that screams out at me that says that, that should change. But I think the Board has the maturity, has the understanding of our business. And should that be -- should that thinking change, it will be spelt down. It will be explained as to why. But as things stand today, there is no reason for us to change that situation.

If I may, I mean -- we are offering a dividend reinvestment option at this point, which is a way of potentially retaining some capital. We felt that this is a nice way of treating all shareholders equally, and we saw it with some other counters who have done it quite successfully. Secondly, if we were to do it, we would want to make sure that we have a sufficient tax shield. So we are currently looking at what that capacity is. And it's something which we just keep debating at every reporting cycle, we keep debating it, and those are some of the considerations which we take into account.