Redefine Properties Limited ($RDF)

Good afternoon, everybody. Welcome to Redefine's group interim results for the half year ended 28 February 2026. As per usual, I'll kick off with an overview and give you a little bit of insight into our strategic thinking. I'll then hand over to my colleague, Leon Kok who's going to take us through South African aspect of investing strategically, I'll then talk about Poland. I'll then hand over to our CFO, Ntobeko Nyawo who will take us through optimizing capital, operating efficiently, engaging talent and growing reputation, then I'll wrap up and then we'll have some time to reflect on what we discussed this afternoon. Okay. Just in terms of the overview, this is slightly very familiar with in terms of our primary goal, which, as you know, is to grow and improve cash flow, and that is our focus. And it will be always top of mind in any choice we make. From a property asset platform perspective, you'll note that the split between Poland and South Africa is slightly different to prior periods in that Poland has shifted down from the 35-odd percent it's usually at. That's because of exchange rate differences, where the closing euro-rand exchange rate was from a rand point of view, 9% stronger than at the prior year. But I think the key takeaway from the exposure to the various sectors is at around 75-odd percent of Redefine's group asset platform is skewed towards the consumer, the balance mainly offices services-driven. Okay. Just some key financial outcomes. We're very happy with these results. As you can see, they are solid. The property asset platform, as you can see, is about ZAR 2-odd billion less than last year. That's because of exchange rate differences. We'll talk a little bit about it in due course. We're very happy with the loan-to-value ratio sitting at 40.3%, well within our target range. Interest cover ratio is improving at 2.3x versus last year's 2.2x. The NAV is about ZAR 0.01 less than last year. But a slide on that to explain it, but it's all about exchange rate translation differences driving that reduction. So it's temporary. In terms of undrawn committed cash facilities and on hand, we'll see that we've got ZAR 5.4 billion available. It is lower than last year. It's not because we've spent any money, it's more about billing of debt loans, just cause that. So nothing to be alarmed about there in terms of that reduction, very healthy nonetheless. Group net operating profit margin improving. Overall, at 77.2%, but some way to go to get to 80%. And I can tell you that South Africa is knocking on the door of 80% and EPP has got some work to do to get us over the line there. Dividend per share for the period is at -- were declared at ZAR 0.2183 per share, it is up 6.1%. Our distributable income per share sits at ZAR 0.2729 per share. In terms of strategic outcomes for the period. As you would note through this presentation, we have transitioned from recovery into momentum. And I think that is what you're going to see as a recurring theme throughout this reporting period and into the next one as well. From an investing strategical point of view, I've already noted the asset value decreased. And as you can see, it is all down to the rand appreciation which has caused that ZAR 2.3 billion shrinkage. The fair value of properties have gone upwards, both in South Africa as well as in Poland. However, the combination of disposals as well as repayment of the loan has offset that number. In terms of optimizing capital, we are very happy to be the first South African REIT to price under 100 basis points or a 3-year bond. And we've already spoken about the strong credit metrics that we have and Mr. Nyawo will elaborate there on as well. In terms of operating efficiently, our distributable income growth in rand terms is up 7.4%. I've already spoken about our operating profit margin lifting to 77.2%. But what is very, very pleasing is to see the South African and our logistics occupancy in Poland improving to 94.2% and 98.7%, respectively. Don't worry, EPP is maintaining its very high level of occupancy. And as a consequence of maintaining, it's not on the slide, but it is there. In terms of engaging talent, we are very excited with our youth development program now extending its coverage for technical and sustainability scarce skills. And you'll note, healthier staff retention levels and the ongoing awards that we receive are noted over the year. In terms of growing reputation, we are proud of the fact that we've maintained our industry regional as well as global ESG leader badges. We are in a league of our own when it comes to the sustainalytics recognition. Leon will elaborate on our solar and our South African backup water, as you can see, very healthy water storage capacity of on average 3.5. Okay. I'm going to hand over now to Leon, who's going to take you through the local asset platform and some key outcomes.

Thank you, Andrew. Good afternoon, everyone. In terms of investing strategically, as you can see there, Andrew explained, there's ZAR 101 billion, roughly split 65%, 35% between South Africa and Poland. The South African portfolio increasing by ZAR 1 billion, ZAR 875 million in fair value gains, about ZAR 430 million of disposals and then the CapEx number of ZAR 659 million. . The ZAR 3 billion reduction in Poland is largely driven by fair value or by currency translation reserve with the rand being stronger. You can also see on the program of capital, roughly just over ZAR 1 billion being spent on CapEx and again, the split in Africa and Poland, not that it was by design, but it's uncanning that it was very similar to the actual total portfolio split 65-35 and as you can see, similarly for the African portfolio split almost equally across our sectors. In terms of the South African portfolio and the outcomes, our carrying value of our portfolio at half year is ZAR 66.5 billion. And from an exposure point of view, 45% of that was in retail. So we are retail buyers, 34% within our office sector and 20% in the industrial sector. Similarly, from a tenant composition point of view, effective, we're very proud of, 71% of our tenants is within the A grade as by the JC listing requirements, and we believe that is the underpin for a sustainable revenue basis within our South African portfolio. Similarly, what you can note there in terms of the number of properties over the period, we've got a net reduction of properties. And as part of our active asset management, where we typically dispose out of the lower grade properties, lower and often the lower-value properties. And that's what's causing that average value per property to have increased from ZAR 287 million to ZAR 296 million. In fact, there's 2 factors. The fair value changes as well as selling out of the lower quality properties and typically the lower value properties. In terms of the outcome on a total basis, we're very pleased with that active occupancy number of 94.2%. And that was achieved on the back of a very healthy tenant retention at 96% which is obviously supported by the actual renewal success rate of 91%. The difference between the 2 is one is by GLA. The other one is by GMR. And that certainly bodes well and kind of speaks to what we talk about property fundamentals, a fairly active year from a letting point of view over the last 6 months. In terms of our average unexpired lease term at 3.4 years, we think that's a very healthy position to be in, and it doesn't pose any undue risks. And what you will also note is within each of our sectors, we've given you the lease expiry profile and we don't foresee any significant years in terms of expiries coming up. We also, as usual, give you an analysis of our portfolio vacancy. As you can see by GLA. It sits at that 5.8% and we convert that by GMR. In other words, we translate that into what we are advertising in that space is at 4.1%. And the reason why we show you that is just to indicate where the vacancy sits in particular, from a retail as well as an industrial point of view, as you can see there's a severe reduction in that implying that's the lesser quality space. So from a revenue point of view, the opportunity doesn't necessarily sit there whereas an office portfolio clearly given that the vacancy of 11%, we still believe from a revenue opportunity point of view, that 8.4% presents opportunity to grow revenue within the office sector. The other pleasing thing to note within this result is on the fair value changes, where across the board, all 3 sectors have achieved positive revaluation for the first 6 months. And just to remind you, these are externally performed valuations. The other point to note there is that from a valuation metrics point of view, is principally our exit cap rates as well as our discount rates. These have remained largely consistent over the last 6, in fact, 12 months. So those value improvements is on the back of actual revenue and income performance, which we think places those valuations in a position that we comfortably should maintain that. The other nice element to note here is the increase in our solar PV capacity. Our installed capacity as at half year sits at 62.3 megawatt peaks, which is a 6.6% increase in underlying capacity. In terms of our retail portfolio, valuation at ZAR 30.6 billion, 54 properties, and as you can see, it is dominated by regional and convenience center. We've got the one super region in And across the board, all our formats [Audio Gap]. So we foresee that lease expiry profile in next year, we're 24% of GMR leases coming up as the real opportunity to drive growth within our retail portfolio. We're similarly given to the Board whereas 96% of all our renewals were either flat or positive, which again speaks to the underlying health of the portfolio. And that's obviously supported by a very healthy trading density at 37,200 per square meter, which is on the back of an increase in underlying tenant turnover of 3%. And we believe our turnover at 7.7% still bodes well for the future from a growth perspective. And as you can see from a solar PV capacity point of view, the bulk of our solar PV sits within the retail sector. Now from opportunity to further expand that, based on our rooftops, we are largely complete once we complete that projects in progress. So the next opportunity from a solar PV point of view would be we are exploring certain car parks. We certainly also are exploring certain battery installations, but the real next big opportunity for us would be to exploit wheeling opportunities. Firstly, from our point of view, which there are known frameworks in place. and we have entered into a very attractive wheeling arrangement there, which will come online by the end of this year, early next year and then potentially also exploiting virtual wheeling opportunity. Within office portfolio at ZAR 22.4 billion, a standout feature in our office portfolio is that value by grade. We're 95% or 96% of our portfolio is invested in premium-grade properties. That certainly, in our view, supports the increase or the improvement in demand we have seen, which is not general market demand, but certainly quite selective in terms of node and quality. And we believe our portfolio is well positioned to attract that. Similarly, from a valuation point of view, you can see across the 3 sectors where that performance has come through. And again, the point to make, that's on the back of actual leasing activity we've seen that improvement in valuation. The office portfolio of the outcomes on the occupancy point of view, we've improved the 87% to 88.9%. So we're sitting at a vacancy at 11.1%, which is about 120 basis points better than what the reported. So again, speaks to the point about the difference in performance of quality of assets versus the lesser grade. The one negative within the performance in Office continued to be our renewal reversions. So for the first 6 months, we achieved a negative 15.8%. As you can note, the footnotes, there was on 14% of the portfolio versus last year at 9%. So again, that relative improvements relative to last year's 6 months on a bigger part of the portfolio does suggest that market rentals are improving. And as you can see again on our new reversion by TLA, we've given you an indication that's not just one-way traffic. Not all leases are negative reverting. So where we do still experience these deep negative reversions is on the single tenant at large buildings that typically come off expiry of a 6- to 10-year kind of lease. If you have a lease construct that's escalating at a 7%, in the strongest of markets, you typically are going to experience kind of negative reversion. So from a strategy point of view, where we do focus on, is to make sure we improve that occupancy so that additional revenue is coming into the base will offset some of those negative reversions. We foresee a minus 15.8% towards -- to dilute towards the end of the year, and we're anticipating to end at about a negative 12% on the reversion front within the office portfolio. Then to move on to our industrial portfolio, a mainstay of the South African performance over the last number of years, carrying value of ZAR 13 billion, 82 properties, as you can see, quite a healthy mix of various exposures. And largely, our portfolio has invested in logistics and modern warehousing. And as you can see, a bit of a mixed bag on the fair value outcome. But again, that's given that we've segmented it on a fairly smaller basis. So individual movements can cause that volatility. But by and large, the positive income coming through in supporting our valuation growth within our industrial portfolio. Our occupancy at 97.2% maintained to last year. We were successful in the short-term renewal of Ridge with Toyota until the end of this financial year. And we've managed to secure a long-term tenant for half of that space for 18,000 square meters, which will commence in November of this year. So we're quite happy with that. So that will leave 18,000 squares within that 50,000 square meter facility vacant, but we're quite confident with the 2 big occupants there that we should be able to let that additional box. And as you can see on the renewal reversion analysis, flat or positive territory within the industrial portfolio, which speaks to the underlying demand within the sector. So we're very bullish about the industrial sector, and we believe this is a sector we would like to allocate more capital to in terms of an expansion point of view, Twofold, within developed to let activity within where we have land as well as repositioning some of our well-located properties that potentially lend itself there too. On the weighted average lease escalation at 6.4% also very healthy and that's kind of level where we are renewing between 6.5% to 7.5% and a weighted average expired lease term at 4.2 years and our view is also very healthy. and does present continued expectation for growth within our industrial portfolio. And then lastly, just to end on our alternative income. Last year, we said that we've targeted ourself to exceed ZAR 100 million, which we duly did. And as you can see, the run rates at the first -- for the first 6 months is ZAR 54 million. So we should very happily exceed that ZAR 100 million. In fact, we need to sort of creates a more audacious goal for us, and so we'll see how we can further expand this but what is quite nice within this performance, is that this is typically short-term income. So it's nonrecurring. So the fact that we already have ZAR 54 million speaks to the underlying attractiveness of the various assets that we do target within this, and it kind of lends itself to recurring income, which is very positive. I'm now going to show -- play a short video just to give you a snapshot of some of the refurb and development activity we've undertaken in the retail portfolio. And once that concludes, Andrew will take over and talk about the Poland portfolio. [Presentation]

Okay. Let's move on to Poland. As you can see, as I said earlier, if you look at the second line, the property asset platform in euros has, in fact, grown during this period, and that's principally driven by underlying asset valuation growth. Translating into rand, you can see the impact of the exchange rate. If you just look at some key outcomes for the Polish portfolio for the period, what is very pleasing is the contribution to the overall group distributable income increasing from 22.5% to 28.3%. I've got a separate slide on it, but I want to emphasize that there is an ongoing significant focus on reducing complexity and high leverage Polish joint ventures. At EPP, we have implemented strict cost controls to improve that profit margin. I think it will come through more strongly in the second half than in this current half. And the good news is that institutional investment activity is picking up in Poland. You'll note that 2 power parks have been sold. We're in the process of selling 2 logistics assets from a pickup in activity and will support and expedite endeavors to reduce complexity on the joint ventures. EPP's renewable energy power purchase agreement has increased the level of offtake to 25% during the period. The core debt within EPP has been refinanced with a 5-year tenure, lower margin and amortization. So 3 massive ticks there, and Ntobeko will elaborate their run in due course. Realized dividend yield is improving, was at about 4%, not about 5%. We'd like to get it higher, and we will do so in due course. And then self-storage developments in Warsaw have been opened, 914 units. We've got another 2 facilities that are in the process of being completed at the moment, which will add further to that, and we'll elaborate thereon through an AV as well as in the slide to come on. Okay. Just in terms of the joint ventures. As I said, institutional activity is picking up from an investment point of view, and we are now starting to make progress. I know we've been talking for a while about it. But finally, we're getting to a point now where tangible outcomes are going to start coming through, particularly in the second half of this financial year. The Horse Group or the M1 portfolio, as I prefer to call it, you'll note there that the surplus land subject to rezoning is being disposed of, and we've made significant progress to simplify the joint venture. As I said, there will be an announcement in the next half of this financial year, where that will be a lot clearer to all of you. And Power Park Kielce as well as Tychy are in the process of being sold. I must actually correct that in that Power Park Kielce has been sold, we received the funds last week for that property and Tychy is in the process. So really, we can tick the progress there. In terms of the community joint venture, it is a medium-term exit for us due to the proliferation of retail parks. However, we have extended the joint venture to March 2032. In terms of Henderson, yes, we would like to dispose this office portfolio. We only have 30% exposure. And yes, we are marketing the portfolio to establish whether there is investment appetite for this portfolio. But as you know, offices are tough, particularly in the areas of and Krakow and Poznan where these properties are located. Galeria Mlociny, we have optionality, yes. It is contributing very positively overall to the bottom line and Ntobeko will show you that soon. But once again, we are sellers at the right yield, 6.5% plus or minus, or we're buyers at a yield of 7.5% plus. It depends on our partner, and we'll see how that progresses in due course. And then the division of ELI provides us with optionality given the attractive asset profile and also the long WAULT of 6.1 years. But yes, there is an ongoing focus to improve realized equity yields that you would have seen already from the highlights. And then, as I said earlier, we are selling 0 yielding development land in Warsaw, realizing EUR 12.8 million. And then we've received an offer for low yielding Skawina and Blonie. Okay. Just in terms of EPP's core portfolio, I think what is very important to note is that these properties are dominant in their respective nodes, and they're located in cities with the strongest consumer demand. And when you look at the actual operating metrics, you'll understand why we are saying that these are core assets. Occupancy is stable at 99.2%. Our indexation rate of 2% is in line with inflation from a Euro perspective. Our renewal reversion remains positive. It is, however, on a very small element of the portfolio, as you can see, around 10-odd percent of the core portfolio was affected by this renewal reversion. Our weighted average unexpired lease term remains at 3.8 years. And all the other metrics you'll see are positive, remain strong and that rent to sales ratio under 9% is very, very encouraging. Okay. In terms of the EPP joint ventures, just to note here, very stable, slight improvements across the board for all of the portfolios, occupancy at the Horse Group and Mlociny stable. Community has improved its occupancy level by about 1% and Henderson surprisingly as well. But Importantly, yes, the rent to sales ratio is all under 10%. Galeria Mlociny is a little bit high, 9.8%, but that will come down as those renewal reversions work through the statistics going forward. And I just want to say that the Galeria Mlociny is really, really doing well. They've introduced paid for parking. It's coming through the numbers, and it is coming into its own. Okay. In terms of ELI, once again stable. There's been no development activity in the portfolio this period. But I think if you just look at its metrics, very, very solid. It's occupancy at 98.7% now. Strong renewal success rate, renewal growth in line with the euro inflation, strong weighted average unexpired lease term at 6.1 years. It's lifted from last year's 5 years. Tenant retention, very healthy at 88-odd percent. And if you just have a look at the overall portfolio, very stable. And also what's important here is that the overall logistics market in Poland is transitioning from rapid expansion to structural maturity. And I think those yields that you see at the bottom graph actually explains that quite nicely as well. Okay. Just in terms of self storage, this is a platform that's expanding through development activity and our strategic objective here is to develop an institutional-grade self-storage platform of EUR 100 million gross asset value. We are well on track by the end of 2027 financial year to have achieved that. And you'll see that is through development activity, where we're going to be adding a further -- if you have a look at it from a development point of view, a 30,000-odd square meter expansion from the current 32,000. So almost double, we'll be taking it up to 62,000 by the year 2027. Okay. Just in terms of our focus for the second half of this year, it goes without saying that disciplined capital allocation is paramount. We need to develop and build a portfolio that delivers durable organic growth. Simplification of the offshore joint ventures is another key priority for us. And then fostering tenant engagement to understand and respond to evolving needs is an ongoing management focus so that we keep our properties relevant. So with that, I'm now going to play you a short video to illustrate the development activity that's underway within our self-storage platform in Poland. [Presentation]

Thank you. And it's a big pleasure to share with you then on the balance sheet side, very pleasing set of results for the first half of FY '26. I think our focus has continued to be on balance sheet strength so that we can withstand the cyclical events. If we look at some of the key outcomes, very strong credit metrics that are consistent with our prudent risk management approach. Let's look at the SA rates, loan-to-value ratio that improved to 40.3% compared to the 41.2% in the prior year. Also an important metric, our ICR, which has improved from 2.2x to 2.3x. Healthy liquidity at ZAR 5.4 billion which is made up of undrawn facilities that are committed and cash on hand. Another pleasing aspect for us is really if you look at our group weighted average cost of debt, reduced from 7% to 6.9%. And then if we break it up in terms of the rent denominated cost of debt, also that improved from 8.9% to 8.6%. And then on the FX, it was stable at 4.5%, similar to the prior period. In these times, I think Andrew touched on the volatility. We're quite cautious and I think our hedging continues to be proactive. We've got 85.1% of our group debt that is hedged at HY '26. And from a ZAR point of view, that is 88.9% and then on the FX side that is 78.9%. And then we'll also share with you the weighted average term of debt at 3 years at 28th February 2026. And then just to move on and then break out the LTV. I think really, this is -- we're maintaining our LTV within our medium target range of 38% to 41%. Largely, I think it's in the improvement in the asset value that Leon touched on as well as the rand step. And if you look at the waterfall that we share with you, the valuation impact you can see at a 0.5% impact on the LTV, similarly on the FX impact at 0.3%. And then the disposal, which is the ZAR 430 million in SA also that's coming through and then some settlement of the loan repayments of the vendors between ELI and brining down. I think the key issue here, we always show on the bottom left, the sensitivities in terms of the LTV, you can see if the SA property values move by 1% that will be an impact on the LTV of 0.3%. Similarly, for EPP property values, a 1% movement will result in a 0.1% impact. The big issue, I think, that we're all focusing on is the FX impact. If the rent depreciates or appreciates by 5%, that will have an impact of 0.2%. Also it's pleasing that we continue to make our progress in the reduction of our see-through LTV. If you recall, in FY '20, it has peaked at 54%. That now at half year is printing at 46.1%. Also the rent trend and the debt amortization that we've maintained in our offshore debt coming through there. We are pleased on the covenants that all covenants were maintained in -- during this period of reporting. Then just to touch on our funding profile. I think really, we've been quite busy. Our early refinancing opportunities that we've taken is continuing to improve our debt maturity profile. If I can touch that we had in the period, we combined a $10 million facility with a EUR 47 million facility into a single EUR 56 million facility, where we achieved a margin of 2% and achieving 65 basis points margin compression. Also here in SA, we early refinanced ZAR 4.1 billion of secured debt at an average margin, which is very pleasing, attractive margin of 1.3% over a tenor of 6 years. That also achieved a 16 basis point margin compression. Post the period, I think we had a very successful auction where we issued in our bond program. ZAR 750 million of listed notes. That was split, the 3-year tenor achieving 98 basis point spread on top of as well as the 5-year money in that achieving 1.18%. So that is quite -- shows the liquidity that we proactively participate in the bond market. Following that, we had an auction that followed a private placement in April of ZAR 1.25 billion, where we took a 7-year tenure at a margin of 1.35%. Then during April, which is post the period, Andrew touched on this, we refied ZAR 6.2 billion of EPP core debt on a 5-year basis that achieved a margin of 2% that resulted in achieving a 56 basis points margin compression. So if you take all of this refinancing activity post the period, it really reduced our maturing debt in FY '26, leaving only ZAR 200 million, which we're happy to repay given that we've got good liquidity. And then also, more importantly, is that it improved our weighted average turn of debt to 3.7 years compared to the 3 years that we had reported at half year. You can see on the bottom left, very healthy liquidity profile in terms of the maturity that debt maturity. But more pleasing for us, one of the variables that is within our control in terms of managing cost of debt through the cycles is really what happens to our debt margins. You can see the pleasing progress we've made on rent denominated debt. In FY '23, our margin was sitting at 2.1%. It's now at half year reporting at 1.6%. Where we still have the opportunity, I think it's really in our offshore debt because that margin has been kind of stable at 2.5% but as we're starting, you can see with the EPP refire where we're achieving 2% on the ZAR 6.2 billion, that 2.5% will start coming down also very nicely. If we look at our hedging, I think earnings certainty is very central to our hedging strategy. So we will continue to focus on this. If we look at the activity in the period, we had ZAR 4.8 billion of interest rate swaps that matured at a fixed rate of 7.3%. We entered into new swaps of ZAR 5 billion at an average fixed rate of 6.6%. But more importantly, I really want to emphasize is that at those attractive levels where the new fix is lower than the expiry, we're starting to build tenure. You can see that the tenure of 2 years, we took advantage of that. We'll continue to look for that. especially in these volatile times because we want to have a hedging profile that gives a lot of earnings certainty. In terms of cross currency swaps, we had $140 million that matured during the period at an average fixed rate of 4.3%. We entered into new swaps of EUR 140 million at a fixed rate of 4% over a 2-year tenure to replace the ones that were expiring. Post the period, I think, also is quite pleasing that we further took a ZAR 2 billion interest rate swaps that had an average fixed of 7.6% that had matured. We replaced those with another ZAR 2 billion of swaps at a fixed rate, which is very pleasing at 7.1% compared to the expiry fixed of 7.6%. But also here, very important. You can see that we're taking tenure of 2 years to continue to build our hedging profile and make sure that there's earnings certainty. And then as part of the EPP refinancing in April, we concluded a collar on the $259 million, which is 80% of the debt that was refined. That collar has a cap of 3% and it's got a floor of 2%. So we will float between those 2 points, but we've taken the risk in terms of the volatility that if rates in Europe, the Euribor runs about above 3%, we have the protection. Also on the downside, we've kept the participation benefit down to 2%, and then below that, we won't participate. This was really at a time when we had to do this. the Euribor was pricing on 5-year close to 2.9%, which we believe was quite higher than the long term that we expect in Euribor of 2%. We share with you in terms of the weighted average hedge rate both in terms of cross currencies at 4.1% and then the rent denominated debt at 7.1% and then our euro debt in EPP at 2.4%. I think we've done a lot of work in terms of diversifying our funding base. That really continues to strengthen our liquidity profile. As you can see, the progress we've made over the period that's shared in terms of we have no single counter exposure to any fund of more than 15%. And I think that we'll continue to build that with opportunities that we're focusing on. In terms of the focus, in this section of our site. I think really we continue to broaden our sources of capital is important so that we can lower cost of capital through the cycle. Focus, Andrew touched on this as well, is really we have to keep our eyes on reducing that see-through LTV, recycling at the noncore assets as well as keeping our debt amortization, that will improve our equity risk profile in our offshore business. And then on hedging, I think it's just the tailor or tailoring of our strategy to take advantage if we can see that there's advantages to build tenor and make sure that earnings certainty and also be able to maintain a predictable funding cost profile through the market cycle. Then if I were to touch on operating efficiently, I think on the income side, I think here, our focus, as you said, is really on operational excellence so that we can really drive sustainable organic growth in our business. And it is pleasing for us that the positive operational metrics and that Leon and Andrew touched on both in the South African portfolio as well as in our Polish portfolio is coming through in our numbers. But also in that, we're very disciplined. I think across the group, we've built a disciplined cost management and those 2 aspects, those variables, are really driving our margins. If we look at our group distributable income, it grew to ZAR 1.9 billion. That is quite pleasing. And the contribution from EPP directly held properties in terms of distributable income in euro terms also that improved from EUR 16 million in the prior period to the EUR 17 million in the current period. Also pleasing that underlying this is growth in our net property income. In South Africa, it's 1.3%. If you look at it from an active portfolio point of view, that's the total, the 1.3% but on an active basis, that number is 3.3%, with retail and industrial and office being flattish. In EPP, also, we're quite pleased that it also grew its net property income by 6%. If you look at our collections, very healthy across the 2 businesses, with SA collecting 99.7%. Equally also, EPP collecting 99.7%, which is quite pleasing to maintain those collections. I think from the solar point of view, Leon touched on it, but also that's where some of this is coming through in terms of our margin and the cost saving out of solar for the period at ZAR 107.5 million. And I think for us, if you put it all together, it's really about the group net profit margin that improved by 0.3% to 77.2%. You can see it on the graph on the bottom right here that South Africa is quite pleasing at 79.5%. And then EPP maintained its -- which the directly held properties at EPP maintained its net operating profit margin at 72% and that then pulls up to the group of 77.2%. This is a really big testament in terms of profitable growth that our business is able to generate. We always give the sensitivities, I think in terms of the interest rates, euro rates if they were to change by 50 basis points on an annualized basis, you will have a ZAR 0.05 impact on our SIs. And then the SA occupancy, if we were to change by ZAR 0.5, there will be a ZAR 0.4 impact on our earnings. The indexation delta by 1% in Poland will have ZAR 0.4 impact on our earnings. And then the rent denominated debt if it were to -- the interest rate were to move by 50 basis points, you will have a 0.3%. And if we just break that down, I think it's pleasing that the retail recovery and really the reducing funding cost is what is driving this stronger organic growth. It's good to see our tailwinds being more than the headwinds. I think we've got a ZAR 234 million of tailwinds and ZAR 103 million of headwinds. Big impact there in the SA NOI, the active portfolio grew by 3.3%, giving us that growth of ZAR 81 million. And then also, it's a story of lower base -- lower funding -- lower interest rate environment, both here in South Africa as well as in Poland, but also with the margin focus that we're there, you can see that the funding cost contributed ZAR 54 million. I'll just deal with EPP in euros just in the next slide. And then I think the other key issue to call on the headwinds is really the antecedent of ZAR 26 million, where last year, we had a DRIP that we issued shares ZAR 150 million. This year, it's not there. We only have this year, the empowerment trust where it issued 29.9 million shares, which is then it causing that difference of ZAR 26 million. So that ZAR 1.9 billion, a healthy contribution from South Africa as well as the improving contribution that Andrew touched on from offshore business. Then if we just unpack the EPP distributable income. Also here, very solid trading metrics and also the lower interest rates is really helping our business to deliver the earnings growth. If you look at EPP cost, it's up EUR 1 million and then the contribution from the joint ventures is also up at EUR 0.8 million. Then the EPP, you can see that it was last year, EPP contributed EUR 26.7 million. Now that improved to EUR 28.5 million. Healthy NOI as well, which is largely driven on the indexation out of the EPP business, the lower funding cost coming through at EUR 0.4 million. The pleasing aspect, I think, in the joint ventures that Andrew touched on, you look at Galeria Mlociny increasing by EUR 1.1 million on the back of paid parking and also healthy leasing on other joint ventures like EPP Community. If we look at our NAV per share, I think marginally, it's really the year is rent appreciation, it's causing a marginal reduction of ZAR 0.014 to $8.15 in terms of the NAV, you can see the 2 legs on the liability side, we get an improvement of ZAR 0.149 but then on the asset side of the translation, you get ZAR 0.481 reduction. On a net basis, those 2 come through to ZAR 0.332. So it's really a play in terms of what has happened to the currency is a stronger rent, which appreciated in the period at 9.2%. We -- at the end of August last year, the euro ZAR was at 20.68. And now at the end of the reporting period, at the end of February, it was sitting at 18.78. So that is a 9.2% appreciation. Then I think we're also pleased in terms of the interim dividend that Andrew has touched on at ZAR 0.288. And really here, we continue to be very balanced and consistent in terms of applying our 80% to 90% payout ratio range. We look at the CapEx that we need to keep the portfolio relevant and fresh and reposition our properties, which Leon touched on in terms of the CapEx and the enhancement. Proactively, we've got a healthy liquidity profile. We also have to factor that, but I think it's pleasing for us that this payout ratio of 80% for the first half, there is no link in terms of tax. So we preserved shareholder value and also, quite importantly, in terms of the credit metrics, maintaining our LTV and also looking at a headroom in terms of the ICR and the covenant levels that we keep. The will not be of fat. This we look at case by case, but this one, we will not be offering a drip if you look, that's why the Board concluded with this well. Then if I just look at the focus areas in terms of operating efficiently, I think improving our net operating profit margin in the medium term towards the 80%, SA has close effect. We've got our work cut out in Poland, but also that we're focusing on quite clearly. The reason for that, we really want to drive a very sustainable organic distributable income growth profile of our business. We want to restore the earnings base so that we can improve the earnings to deliver on our total return target. And then we'll focus and accelerate technology adoption and identify and enhance operational efficiencies, and that will continue to then improve our efficiency and strengthen the processes in our business. Then if I move on to cover engaging talent. I think empowering creativity and driving innovation is really we want to lead with papers. In terms of building a high-performance workforce to support our sustainable income growth, you can see the employee retention rate quite healthy in South Africa at 97.1%, and equally so quite healthy in EPP at 98.2%. I think, for us, where we're really looking at here is we adopted and enable AI across the business even into some of our HR apps so that it can equip leaders with real-time insights and really get into improving the operational efficiency and drive higher margins across our processes in the business. In terms of the focus areas in this part of our business, I think we're quite clear we want to build the future critical skills that is aligned to the evolving needs of our business. That we'll anticipate and deliver an outcome of a transformed pipeline of skills. And then we want to align our structures and responsibility to strategy, and that is that we continuously review and refresh roles and work allocation so that we can drive execution across the business. We also want to create more growth opportunities for our people. That's really just to strengthen retention in a flat operating structure that we operate in. Then if I cover growing reputation, I think embedding ESG as an operational imperative continues to be our focus. If we look at how we deliver the long-term value through some measurable impacts, you can really look at the 18.1 megawatts of wheeled energy through our short-term power purchase agreement. The increase that Leon touched on, the 7.2% increase in our solar PV to 62.2 megawatts also is quite pleasing because that is now -- those are the numbers that I touched on in operating efficiently coming through in terms of cost savings. I think we're also quite pleased that 9 of our buildings are on a net basis, and we'll continue to look for opportunities to improve that. On the social side, consistently maintain the Level 1 BE that helps in terms of driving also our empowerment status as a business. And then I think in terms of the -- just a some of the awards in terms of our governance side, where we received -- we continue -- our reporting continues to be leading. We received awards in terms of the mid-cap there we're first place. And then in the Ernst & Young 2025 awards, we came second place in terms of our integrated reporting. And then I think also similarly in Poland, we are making -- demonstrating our responsibility towards the planet there. We're making significant strides in our sustainability journey also in Poland. I think 61 EPC energy certificates that we are proud of. And also, we're looking at -- there is a solar of 7 megawatts that is being installed. That is installed, which is really the installed today, which we're very also proud of. And I think we'll continue in that part of the world really to look especially on the wind energy and see how that could come through in terms of -- and how we can grow that 33 that we buy through the power purchase agreements. In terms of the focus areas, in this, I think we're quite clear that extending the upside of us to all the stakeholders, leverage our market-leading ESG position and embrace the digital solutions so that we can have a stronger redefined plant, deepen our relationships with our stakeholders and then also enhance our stakeholder user experience through all the things that we do. With that, I'll hand over to Andrew for the wrap up. Thank you.

Thanks, Ntobeko Okay Just in terms of the wrap up, I just want to remind everybody that whatever reason, in March, has always been a trigger event that has kind of redefined the second half of our financial year. This year is no different. But what I want to mention is that after every trigger event, Redefine has emerged in a much stronger shape, and I think through this presentation this afternoon, we would have demonstrated how we are moving into better shape and where we've come from in terms of a fairly difficult position back in 2019. If we just move now on to the variables under our control, for us is a constant focus on what we can manage without being distracted by all the noise out there. In terms of capital allocation, we are building a quality diversified portfolio to deliver that durable organic growth from an income and a capital perspective. Capital sourcing is very, very important. It is as important as capital allocation in terms of conservative balance sheet management, with the objective of optimizing that cost of capital. And then rental growth and cost containment, goes without saying, if we want to improve our margin, that's where our focus is. And we're looking to use technology to assist us in enabling that endeavor. In terms of team and culture, there's a constant focus on investing in and transforming our human capital to empower creativity and to stimulate innovation and. In terms of durability, it's not built in a crisis, it's revealed in one, and I think you but what is very, very important is that the operational improvements are intact despite the cyclical Middle East conflict. So for us, momentum is there an interest rate risk I just want to point you out to Page 32 of the operating efficiently slides, where we actually provide you with a sensitivity analysis there in terms of a 50 basis points interest rate rise and the impact thereof. So on an annual basis, 50 basis points rise in the interest rate translates into roughly ZAR 0.08 per share. Now if there is an increase in May for South Africa and in the Eurozone in June, as we suspect, you will understand that the impact is roughly ZAR 0.02 to ZAR 0.03 per share which means we will be still within our market guidance of 6% to 7% for FY 2026. Our dividend payout ratio, Ntobeko has already touched on, but I just want to emphasize that our endeavor will be to maintain our current payout ratio, which was for the full year last year, 87.5%. And unless something comes along that it's impossible to do so we will maintain that. So with that, I want to thank you for your time this afternoon. And I want to open up now for some reflections on the results. We have got some questions, and we will proceed as per usual to answer them to the best of our ability.

I will have to put on my glasses unfortunately for this because the font is a little bit too small. So excuse me for that. But I'm going to kick off here. The first man out of the blocks today was. and his question is, a question for Leon. How much more leasing risk is there from large, long-term over-rented assets or leases? Says I only have Alice Lane in H1 '27, I assume it's estimate. So you're thinking which is good. Any others coming up in the next 18 months? Leon?

As always, you're quite correct. We've got 2 leases there. end of this year. So it's the first half of '27 and early next year. .

Thank you, Leon. That was a brief answer for a very long question. next, how much support do you expect the Polish government to create to protect the average consumer from rising energy prices? The Polish government were the first out of the blocks on that. I can give you the specifics of that package price increases and so forth. Nazeem's next question is, did you highlight that 2 logistics assets are in the process of being sold in Poland. I assume your English isn't right there, Nazeem, but yes, we are. What is the value of these sales? The value of these 2 sales, Nazeem, will be EUR 45-odd million. I'm always a bit quite to be quoting numbers before we've actually announced these transactions. I'm just giving you an indication of what they're going to be. But it is around EUR 45 million. Remember, is another EUR 12.8 million. So from a proceeds perspective, you're looking at about EUR 58-odd million. In terms of the next part of his question, what was the pro forma value of the ELI, I'm assuming this is the portfolio after adjusting for asset land sales. So Nazeem, we've got roughly EUR 515 of assets within ELI. New person yes, Keith from Oxford Partners. His question is what is your medium-term strategy for the self-storage portfolio. So Keith, the portfolio is to build an institutional grade self-storage platform with a gross asset value of EUR 100 million. As I indicated to everyone in the presentation by the end of 2027, we will be there. Then we've got some other thoughts around how we could expand the self-storage platform through complementary product. More of that will come in the second half of this year once I've got Board approval for my thoughts. Comes through with a question as follows. What are the specific internal thresholds management is looking towards before considering a move toward the upper end of the 80% to 90% payout ratio? So I think my colleague, Mr. Nyawo was very clear that we will stay within the tram lines. There's a specific reason for that. And that is that there is an element of structural defensive capital expenditure that does not enable us to go beyond 90%. We've learned from mistakes of the past, when you distribute 100%, you need to fund from some source such defensive CapEx, and we're not going to get ourselves tripped up once again in the temptation to grow dividend through manipulating the payout policy. Okay. Another question from. I suspect it won't be much, but what is the sensitivity to earnings -- to changes in the repo rates? I've preempted your question already in the presentation. And then Nazeem ask what is strategy on ZAR swaps given that keeping short-term hedge term in anticipation of lower rate is unlikely to materialize. We talk to building tenor on ZAR that is 2 years long enough and that's a question for Mr. Nyawo.

Nazeem, look, I think like we say, 2 years is where we see the ability to build tenure. I mean, if I look we would like it to be more, of course. I think when the interest rates permit, we would like to do more than 2 years but at the moment, I mean, if I look at the 5-year swaps, they are pricing in at about 7.5%. And you look at the opportunities around 2 years, where we're able to maintain and 5-year swaps at a rate much more closer to what we believe is a neutral policy -- neutral rates in South Africa of about 7%. That's what we're trying to do. But definitely, it's all just about earnings certainty. And I think 2 years from now, the environment gives us that. We will do more when the macros change.

Great. Thank you, Ntobeko. Okay. Another question from is are you expecting retail reversions to experience a significant weakening towards 2027 due to the SA consumer losing spending power due to higher costs? Leon?

No doubt the potential headwind from pressure on disposal income, given the higher inflation and such like is something we're concerned about. What we have seen in -- particularly in the run of last year is that even though the consumer was still under pressure, we haven't seen that playing or coming through in the numbers from a tenant turnover point of view, which large turn slightly positive. So we are hoping that the effect would be muted and that we were for the foreseeable future.

Thanks, Leon. Okay. We've got another new person asking questions, William. Thanks for the presentation. Two points which interested me in the alternative revenue stream slide was mention of investigating decentralized data centers and more robots. Can you perhaps expand on what considerations have you made on those points and what opportunities you see, Mr. Kok?

Yes. Again, these are just minor opportunities that we foresee to sort of expand the reach of data centers and maybe at a more mobile level. So by no means that are meant to present massive opportunities but again, it's just to kind of give you a bit of color around the kind of thinking that we do within this space. So it's -- our team there has really been given license to be creative and really explore all avenues of revenue generation.

Thanks, Leon. Okay. Peter asked us, can you please speak to the European banks that are participating in the core EPP refinancing? Mr. Nyawo?

Peter, look, I think the lead banks, the 2 lead banks in that 6.2 billion refi were Erste and which are very, very, very supportive of us. But I think the important part, Peter, just maybe to touch on quickly is that, if you recall, we used to have a difficulty in negotiating amortization with those guys. So we are quite pleased to achieve no debt amount with them, which really, from a cash flow point of view, improved EUR 7.4 million of cash flow on an basis if you eliminate amortization. So strong liquidity, strong appetite from the regional and local banks in Poland. We're quite happy with the liquidity there.

Thanks, Ntobeko. A question from Francois Du Troy, the Group and are 2 of your 3 biggest South African retail tenants. Can you comment on their trading performance in your properties and also on lease negotiations and whether their operating margin pressures are placing pressure on renewal terms? Leon?

Yes, Francois. So I think challenges have been in the media for some time. And no doubt, this latest question is as a consequence of the labor negotiations that is, I suppose, another neither they're trying to pull to manage margin. So as we indicated over the last couple of reporting cycles, we're in close collaboration with. They continue to be well paying tenant and the negotiation has been no different to what we've experienced with any other grocery retailer for that matter. Yes, they have embarked in the process to optimize stores within our portfolio that is largely within the base, and we've concluded those optimizations and where it was closed, we no longer serve their purpose. So from an operational point of view, we don't foresee any undue risk. Yes, it's something that we continue to monitor as we'll see if there's opportunity for further optimization, and we will continue to see that. update over the -- back end of last week and media reports coming over the weekend. my own assessment of that and certainly what we've experienced from South African point of view is that those issues are more related to some of the offshore expansion. Locally, we have not experienced any difference in negotiation or any difference from an operating point of view. As with all fashion retailers, we constantly monitor performance. and we make sure that they continue to invest in store update, we certainly sort of see there is a correlation between the store upgrade and turnover performance, and we will continue to monitor that. But I think within the fashion and grocery, both of those categories being most landlords biggest exposure with the retail sector, they continue to demand asset management attention and focus.

Thank you, Leon. Okay. The question from is the current level of cost containment sustainable? Or are there inflationary or utility pressures that might catch up in the second half. Mr. Nyawo?

I think a large drive in terms of our cost containment is really driven by the solar performance. And in the numbers we show you that, that contribution, we expect that is far much more sustainable. And we think in the second half, yes, there are pressures, and it's really helping us to absorb the power inflation administered cost, but really, the driver of it is the solar savings. And there's a sunshine we'll continue to drive those benefits. .

Correct. Okay. So that looks like we've answered all the questions for today. If anyone has any other thoughts driving home or while you're having a coffee this afternoon, drop us a line either via e-mail, WhatsApp or simple telephone. We are available to answer any questions you may have. We're looking forward to the one-on-ones with all of you. And I just want to thank you all once again for your time, your patience with Redefine and also seeing all of the talk from over the past 5 or so years now starting to translate into tangible outcomes of distributable income recovery, balance sheet strength and durable income, which, as we know, is so important in this environment. So with that, thank you, once again, all the best. Please like, share or repost all of our LinkedIn articles that will be following this results presentation. We do value your support. So thank you.