Spear Reit Limited (SEA) Earnings Call Transcript & Summary

Good morning. Thank you for joining Spear's FY '24 pre-close presentation. We appreciate you taking the time this morning to be with us and we are coming to you live from Cape Town. The 2024 financial year has been another challenging year as the macroeconomic environment provides very little respite for the tough trading conditions. We have seen geopolitical risks increase specifically over the last 6 to 12 months, making global tensions even tougher both for a local economy and for the globe. Within our context, there are very few things that are passive in the real estate universe, but we do pride ourselves as active managers of our assets to be able to play that active role across the diversified portfolio, looking to create income enhancement opportunities and value-adding opportunities within our ecosystem on an ongoing basis. Spear remains the only regionally focused REIT listed on the JSE. We obtain our specialization through exclusively investing within the Western Cape with a distinct focus on the Cape metropol. We obtain our diversification through investing into high-quality industrial, commercial, retail and mixed-use assets. The final 6 months of FY '24 have certainly been a period of clawing back profitability from the first 6 months of the year as much as possible. As a management team, we are confident that FY '24 will achieve the key performance metrics set out by management at the beginning of the financial year, despite higher-than-normal cost creep pressures. If you have any questions during the course of the presentation, please e-mail them through to [email protected], and we will attend to them after the presentation. Just having a look at what I'm going to be covering during the course of the presentation this morning. Just moving on to our environmental update. Just a quick reminder. Spear's mission is to be the leading Western Cape focused REIT to grow our distribution per share ahead of inflation on an annualized basis and to operate within the top quartile of our peer group. Moving through to the operating environment. FY '24 operating conditions have remained challenging due to the persistent impact of load shedding, rising operating costs and subdued economic growth. The Western Cape within the South African context remains a positive outlier in the overall context, but has not been immune to the punitive effects of load shedding and the associated costs. Positively, a record festive season and reducing unemployment rate in the Western Cape should create near-term tailwinds across the broader provincial economy. And I must just complement the provincial government, the local authorities and the private sector for really making jobs growth a key focus area as this is one way for us to stimulate the economy, put more money in people's pockets and make sure that people spend that money within this provincial economy. Notably, the general SA government projects for 2023-2024 amounts to ZAR 101.6 billion. 60% of these projects are projected to be taking place within the city of Cape Town, which includes a ZAR 45 billion for upgrading wastewater, sewer and road infrastructure and a further ZAR 24 billion towards minimizing the effects of load shedding. Now these measures are critical to cater for the level of population growth and the service delivery required to cater for this population growth within the Cape economy. Having a look at the operating cost creep. This has remained a challenge, specifically in these 5 areas. Increased interest rates have, in the short term, impacted profitability but we don't believe that to be structural in nature as signs of an interest rate tapering cycle are emerging even though economists have tapered back the anticipated 100 basis points cut for the full year to about 75 basis points and these have been taken into our forecast assumptions for FY '25. The material increase in City of Cape Town on rates and taxes are absorbed with most increases recover from tenants, but there is a lag effect that does take place. And again, these are consequences of a growing metro, growing city and increased property values. So effectively, it's a double-edged sword. We want the municipalities to spend money on infrastructure and as a result, they need to generate higher levels of revenue. Nonrecurring repairs and maintenance due to severe weather conditions in the Cape as we reported at our half year, this impacted roughly 8.5 months of FY '24, which has resulted in this increased expenditure to higher-than-normal levels, but we have done what we needed to do to keep the core portfolio stable and generating cash flows. The city of Cape Town winter electricity tariff structure was absorbed in the first 6 months of FY '24, and will now equalize out in line with our forecast. And the ongoing absorption of unrecoverable diesel costs relating to certain common areas and vacant areas within the portfolio. Having a look at our portfolio indicators. On a year-to-date basis, our portfolio occupancy rate is just under 94% and improving. Our occupied GLA is just under 402,000 square meters notably, and extremely proud of this metric. Our portfolio in-force escalation rate is at 7.5% and our weighted average lease expiry at 26 months. For a diversified portfolio, there's always going to be ebb and flow on the well, and I'll get to that maybe a little bit later in the presentation. In terms of rent reversions, on a year-to-date basis, we are approaching a close on flat number of negative 0.68%, which already is a 44-basis-point improvement from the third quarter update provided for FY '24. 151,558 square meters of renewals and units were concluded during the year-to-date and 100% of our FY 2024 renewals have been concluded. In terms of our receivables, Spear's debtors book remains actively managed with cash collections consistently close to 100% of revenue build. Tenants' payments, and one can contextualize it within the macroeconomic environment, have remained positive, but there have been minor outliers that have shown strain over the financial year. Having a look at our capital recycling, as disclosed, as the market is aware, we've disposed of the Liberty Life building. That is on track to conclude, i.e., transfer in the first quarter of 2025, and we anticipate that to come through within the first part of the year. The disposal will reduce as the market knows, our LTV by around 450 basis points, which post our capital raise that we did in February, will reduce the LTV to between 29% and 31% level. Furthermore, we've disposed of a smaller asset in Tyger Valley, 142 Edward Street for the amount of ZAR 43 million, which is roughly a 4% discount to our book value, which will further reduce our loan-to-value by approximately 65 basis points. So having a look at our capital allocation. In terms of our Spear share repurchase program for 2024, this amounted to repurchasing approximately 4.3 million shares. We are on a tapering end of the strategy given the re-rating in our share price and the forward yield associated with that re-rating. Currently, in treasury, we hold approximately 8% of company. In February this year, we launched a private placement. We successfully placed ZAR 313.5 million worth of new shares in the market at a DPS forward yield of around 9.7%. This new capital will in the short-term bolster the Spear balance sheet and set Spear up strategically to take advantage of growth opportunities within the Western Cape. We have furthermore deployed ZAR 20 million of cash reserves across the portfolio in defensive CapEx, of which, Sable Square Shopping Center, 30,000 square meters of GLA was the largest recipient of that defensive capital expenditure. Having a look at our acquisitive growth. In May 2023, we took transfer of the Ireland Urban Logistics Park. This added additional impetus to our industrial portfolio, which increased our industrial portfolio or our overall portfolio GLA towards industrial to 58% of the total portfolio and is performing exceptionally well within the portfolio. Having a look at sustainability. We've added year-to-date an additional 2 megawatts of new solar PV across the portfolio. Approximately 60-plus percent of the Spear portfolio assets are now installed with PV solar infrastructure. All systems do remain grid tight as the business case for batteries is not yet feasible within the Western Cape given the amount of money and initiatives currently being deployed by the local authority to mitigate the effects of load shedding. 25% of total portfolio energy needs are now generated by the solar PV portfolio. 3 new solar PV installations are currently in the planning phase, as we aim to reach between 9 megawatts and 10 megawatts of installed capacity over the next 12 to 18 months. We currently have 3 wheeling projects that are in feasibility phase as the City of Cape Town again pioneers new models in its fight for energy security. However, the return to Stage 6 and technically higher load shedding has impeded the effect of the -- or the performance of the systems, just given the fact that they grid tight. In terms of our development growth, GTX Park in George is progressing well. Phase 1 of the bulk infrastructure project is underway and is set to compete between March and April this year. Total development GLA of 30,000 square meters. This will be tenant driven across 8 sites, ranging from 400 square meters in size to approximately 10,000 square meters in size. Additionally, another second industrial project that we are in the planning phase is Bravo Park Phase 2 in Blackheath. We have the ability to develop a 7,000-square meter modern logistics facility on land that we already own, and that is currently in feasibility and plan approval phase, which will also be tenant-driven, given the demand for warehousing in the Western Cape, we believe that, that should be a project that sees the light of day within the next 18 months. So moving on to our operational update. Key focus areas for us in the year, commercial vacancy mitigation, vacancy creep mitigation, increased finance cost absorption capabilities and operating cost creep pressures. The mitigation measures against negative rental reversions, the cash availability and treasury management are maintaining a robust collection profile and ensuring that our loan-to-value remains within our strategic band. What will be the status quo of that on the commercial vacancy mitigation. Towards the end of 2023, we saw numerous milestones being achieved in the office portfolio with #1 Waterhouse being fully let, Bloemhof building fully let and the Liberty Life building being fully let. 2024 has gotten off with slower momentum as decision makers are taking longer lead times to make decisions, but we do anticipate that within the first quarter of this year that further meaningful inroads will be made towards the commercial office vacancy within the portfolio. In terms of general vacancies, we've seen positive letting and reletting activity across the portfolio as can be seen within the robustness of the occupancy rate. Cost creep, as mentioned, we have tried to defend as far as possible against increased interest rates, increased rates and taxes and the nonrecurring repairs and maintenance across the portfolio as a result of severe weather conditions this year. Our reversions, they have been in line with management's forecast, particularly within the commercial office portfolio, we'll get to that in the letting activity slide. We've remained very liquid with ZAR 135 million worth of cash availability. Our rent collections year-to-date to 97.25%. We do anticipate that to be closer to 98% to 98.5% at the end of the financial period once we report our results in May. In terms of our loan to value, we are well within our strategic band of between 38% and 43%. And post our cap raise, we'll be around 31% to 33%, post the Liberty Life transfer that will reduce even further to sub-30%. Having a look at our salient details. Spear owns 28 high-quality Western Cape assets, with a portfolio value of ZAR 4.47 billion. Our portfolio value year-on-year has increased by just under 6%, this is prior to the disposal of the Liberty Life building. Our average property value is ZAR 157.5 million with our average property value per square meter at ZAR 10,340 per square meter. In-force escalations at 7.5% compounding and a portfolio GLA of 426,542 square meters. Portfolio occupancy rate just under 94%, our weighted average lease expiry 26 months. Now as I've always mentioned, we pushed to get that well up as far as possible. But priority for us is rent and tenant preservation in both the short, medium and the long-term. Thus, we have to take pragmatic and flexible approaches when and where possible. We are targeting a 36- to 45-month well, which we do see as a likelihood, but we are operating in a certain level of uncertainty in the market and companies are alive to those facts and want to make sure that they also mitigate their own risks in that respect. Average portfolio rental rates per square meter ZAR 107.13 per square meter gross, with the year-to-date collections of 97.25%, as I project, we should end off at between 98% and 98.5% for the financial year. Having a look at the financial snapshot. We propose a final for the 6-month payout ratio of around 96%, which should bring us to an annualized average of around 95%. Spears SA REIT cost-to-income ratio for the year-to-date was 43.37%, versus FY '23 of 43.45%. It's a marginal decline. Our SA REIT Inc. admin cost to income ratio is at 5.99%. The team has done a great job in keeping strict cost controls in place where and when possible, and we look forward to keeping that number between 5.99% and 6.2% on a stabilized basis. Our TNAV is ZAR 11.60, so 1.13% increase from FY '23, and our TNAV post the capital raise will dilute marginally by about 3.5% to ZAR 11.20. Our LTV, as at January is 40.18%, pre the Liberty disposal and pre accounting for the capital raise. Having a look at our fixed debt ratio. Notably, it is below our strategic band between 65% and 75%. However, with the disposal of the Liberty Life building and post the capital raise, we will be at around 64% once that building transfers out of the portfolio, which will be -- put us at the front door of the 65% hedged. At this point in time, we have disposed of assets at a slight discount to book value, utilize that to settle debt versus incurring very expensive derivative and fixed rates costs to just hedge up the portfolio, especially given the fact that we are looking as if we're entering an interest rate tapering environment. Our average debt expiry is 25 months. Our average cost of debt 9.60%, average cost of fixed debt 8.55%, our average cost of variable debt 10.17%. Having a look at our collections. We built ZAR 607,637,000. Another milestone for Spear is this will be the first year that our revenue exceeds ZAR 600 million, and we believe that what you celebrate get repeated, and hats off to our team that we are able to consistently grow our revenue. Collections that include billings for February, we collected 97% of our commercial rentals, 97% of our retail rentals and 98% of our industrial rentals. Having a look at the letting activity, as you can see, there's a marginal negative reversion across the portfolio of 0.68%. We did take a deeper-than-expected reversion on one of our larger office leases at Northgate, which came off of a 10-year lease agreement that has been done and that was factored into our income statement assumptions for the year. But as you can see across both the industrial and retail portfolio, there have been strong positive reversions coming through. We had 139,583 square meters come up for expiry and vacate during the year. We renewed and relet 151,558 square meters. Our average gross rental was at ZAR 85.35 on those expiries, and they are now at ZAR 84.77. I would like to also note that just under 70% of all letting activity for the period was done within the industrial portfolio with really good growth on the expiry rental and just under 42% of the total industrial GLA was renewed in this year. And some of these renewals are actually done prematurely just given the fact that tenants are aware of the scarcity of high-quality industrial spaces within Cape Town. Having a look at our balance sheet, we are operating well within our covenants. Our strictest covenants with our banks, 50% loan-to-value and interest cover ratio of 2x. As I mentioned, LTV at 40.18% and ICR at 2.29%. This is prior to the Feb cap raise.And post the capital raise of LTV, as I mentioned, will be in a range of 31% to 33%. Comparing January 2024 to the FY '23 year, you will see that our weighted average variable expiry of debt went from 30 months to 25 months, despite being a year down the line. We have also our -- increased our weighted average fixed expiry on our debt from 16 months to 21 months. In terms of our weighted interest rates. I mentioned earlier, weighted average interest rate of 9.6%, weighted average variable rate of 10.17% and weighted average fixed rate of 8.55%. Moving on to our sectoral performance. Overall, when zooming out and looking at the total Spear portfolio, what you will see is a depiction of resilience amongst a very tough trading environment. And some of the subsectors have been more resilient than others, but we're alive to the fact and we have no issue rolling up our sleeves and getting into the nitty-gritty, and we believe that within the next 3 to 6 months, we'll start to see the fruits of that coming through across the diversified portfolio. Having a look at retail, making up just under 49,000 square meters of total portfolio GLA. Trading has been consistent within the convenience and destination retail portfolio. Convenience retail and destination retail from a credit risk perspective, 41% of our tenants are nationals, which is very defensive for us. We place and neither do our tenants place no reliance on local or international tourism market which could be at sometimes be a little bit lumpy. In terms of occupancy rates, we are just under 96%. And this has dropped slightly because we are busy at Sable Square repositioning some of the retail tenants, and that has caused a shorter-term vacancy to manifest within that property, but it's going to improve the property and attract a far broader shopper market once that is complete. Collections have been strong at 97%. Positive rental reversions of 9.53%, which again bolsters income growth as 24% of total retail GLA was renewed or relet during the FY '24. And we are seeing and also -- and we've seen at Sable Square is a practical example, the larger retailers are looking to increase market share with new brands, new space requirements which has triggered some of the tenant repositioning that's taking place at a property like Sable Square. In terms of commercial, 130 -- just under 132,000 square meters, makes up 30% of total portfolio GLA. Offices, there are slower progress is being made on the vacancy contraction within the office subsector. Letting momentum, as I mentioned, has picked up, but the decision-making process is a lot slower than what we've experienced towards the last 6 months of 2023. Occupancy at 84.23,%, collections are strong at 97%. We've seen the return to work momentum continuing to be consistent. We've seen globally large companies now starting to place the return to office at the top of the priority list. International BPOs have also been a game changer for not just for Spear, but for the office sector within the Western Cape. The Western Cape office sector offers an incredible value proposition for BPOs to position themselves within the Western Cape, and we are seeing that flow through within our own portfolio. As mentioned, 1 Waterhouse, Bloemhof building and the Liberty Life building fully let. Having a look at Industrial. Industrial is the quarter back of our portfolio, doing exceptionally well, 58% of total portfolio GLA, strong trading throughout the year with a positive rental reversion print of 5.7%. If we had the ability to duplicate this portfolio by the click of a finger, we would do so because of the extent of demand within that space. And the demand isn't just centered around modern logistics. Demand is centered around small, medium, large-scale warehousing, distribution and bulk storage facilities. Occupancy rate of just 97.44%. Collections at 98%. Typically, these collections will continue to improve because some of our larger tenants within the industrial portfolio pay their rent upfront in the month and then they pay the utilities and rents and taxes at the end of any specific month. Therefore, there is always a little bit of a lag effect on the reporting. But we've continued to see strong demand across our multi-let industrial parks and obviously, the single larger tenanted assets are all let on long-term leases. Our in-force escalation remains exceptionally strong at 7.71%, and what's also critical and what segmented aspects of the Spear portfolio to be more attractive than other parts of the industrial subsector in Cape Town is our availability of electricity supply from the city of Cape Town, which again does provide a level of insulation from the effect of load shedding. As I mentioned, the Island Urban Logistics Park is fully let, has stabilized within the portfolio and the bulk infrastructure works in George are going well, and there's a lot of tenant interest. And we're in the process of marrying up project completion of Phase 1 to the implementation of Phase 2, which would possibly see the development of the first portion of the industrial site. Just the general business and portfolio update. Despite, again, being in the Western Cape, it is tough out there, and we assure you that every day we're in the trenches looking for value, looking for sustainability. And the office sector is showing signs of recovery, but the leasing momentum is shifting, and we do believe it will continue to convert vacant space to occupied space in the short to medium term. We will continue to implement our solar PV and water augmentation strategies across the portfolio. We are just under 8 megawatts of installed capacity across the portfolio. And as mentioned, the 2 additional megawatts that we're installing that's come online will further bolster the Spear drive to become self -- more self-reliant on the generation of electricity supply. Rental collections have remained consistent despite the pressures that we have seen from certain of our tenants, but those have been dealt with and mitigated where possible. And I think just key for us when we step back and look at the business, the business is operating consistently. And with that consistency, it gives us the opportunity to look at where portfolio enhancements can take place, i.e., at Sable Square, additional retail, potential residential, Blackheath, Bravo Park expansion, additional warehousing, et cetera, et cetera, in addition to potential developments that we still plan to do in Paarden Eiland. Moving on to our outlook. So amidst this tough trading environment, Spear's Western Cape portfolio remains very well placed to benefit from the continual shift in real estate fundamentals geographically, along with the tailwinds created by the effect of immigration and good governance within the province. The macro economic environment remains extremely challenging despite the performance of the Western Cape economy. The national unemployment rate must be mitigated through jobs growth and investment by both the private and the public sector in order to drive growth in gross domestic product. I'm very pleased to have seen the announcement of the appointment of a Chief Executive Officer to Transnet, as the headwinds in the national logistics ecosystem within the ports and the rail network is a massive growth inhibitor for South Africa and also an unnecessary contributor to cost price inflation. However, we do see green shoots, and we must never forget to remind ourselves and yourselves that the Western Cape is starting to set itself apart from an energy security perspective, for unemployment -- from dropping an unemployment rate, from a growth in gross domestic product perspective and also for consistent good governance and infrastructure investment, and this we should never lose sight of. As I've mentioned, the Western Cape is led by example in driving down the unemployment rate to the lowest of any province within South Africa as jobs growth has been the focus. And I think another thing to mention is that West grow together with the Department of Economic Development have been key in attracting onshoring of manufacturing and onshoring of skills within the Western Cape economy to cater for the supply chain dislocations that have happened globally across the world, and for that they must also be commended. 2024 will be another watershed year for South Africa. I want to [ empathetically ] encourage every single South African that is able to vote to make their mark during the general elections this year in May. The only way that we can see a real change within this country is for change to happen at the ballot boxes. And we encourage everyone to play their part to create the South Africa that we deserve and the government and to give us the government that we deserve. The positive effects of immigration and the strong return of the tourism and hospitality sector will bode well for Spear for the balance of FY '24 and beyond. The notable expansion of residential areas and mixed-use precincts have driven demand for space solutions across the Spear portfolio and will drive economic growth and investment within the Western Cape for the foreseeable future,as the entire province positions itself as an investment opportunity with dependable municipal infrastructure. The trading environment will remain challenging on all fronts as consumers absorb the higher cost of living and the operating and occupancy cost increases impact the net revenue base of tenants. The prospect of an interest rate tapering cycle in South Africa towards the second half of 2024 is real and bodes well for the general South African economy as well as the real estate sector as contracting finance costs, coupled with stronger portfolio in-force escalations would result in improved profitability. As a management team, we've remained highly strategic and obsessed and focused on our approach to manage costs and also to ensure that our asset management initiatives are executed for FY '24 and beyond. In terms of our guidance, we maintain our guidance that for the full year FY '24 that our DIPS will be within a range of 0% to 1.5% higher than the DIPS for FY '23. This guidance is based upon an informed by and impacted by the following: that low shedding stages are mostly limited between Stage 1 and Stage 4 in the city of Cape Town for the remainder of FY '24, our vacancies are reduced in line with management's forecast, our lease renewals are also concluded in line with management's forecast, our tenants are able to continue to successfully absorb the rising costs associated with utility charges, municipal rates and diesel charges, no further interest rate hikes are implemented by the Reserve Bank, which we don't believe to be the case, and that there is no civil unrest within Cape Town, the Western Cape or South Africa during the rest of FY '24 and obviously, the year ahead. Any changes to the above would obviously affect our forecast for the year ending 29 February, 2024. This brings us to the end of the presentation. I thank you for taking time to be with us this morning. And we will be back shortly for Q&A if there are any questions that have come through during the course of the presentation. Thank you very much.

Welcome back. We do have a couple of questions. I'm joined here by our CFO, Mr. Christiaan Barnard, who has also recently become a father for the first time. So again, we obviously wish to congratulate Christiaan, He is operating on very little sleep at the moment. And yes, we'll get straight into the questions.

Thank you, Quintin. Our first question is from [indiscernible] disclose from where it really was. His question is, could you please provide context, why are you buying back shares and issuing new shares for capital at the same time?

Yes. So I think we obviously haven't -- we've got to look at the year in totality, I think leading up to around the 14th or 15th, 16th of December, the share price had been trading at roughly ZAR 7.40, ZAR 7.50. So the opportunity set for us from a capital allocation perspective and what we could acquire from an accretion perspective, the strategy was to continue with the share repurchase up to that point in time. As I mentioned, that process is now on the tapering cycle given the recent re-rating of the share and the forward deal that it presents. So within our capital allocation strategy, we have a 3-pronged approach. One is to acquire assets that yield above our weighted average cost of capital. The second is to reinvest into the portfolio to create accretion from an income perspective. And also the third is to repurchase our shares when the yield is attractive. We know the portfolio, we know where the pressure points are and it's far better for us to when the shares are trading at a 40% discount to net asset value, where today, they're trading at, say, 27% discount to net asset value to repurchase our shares as opposed to going out and acquiring assets because we were unable to at that point in time that we were busy with the repurchase, acquire assets that would yield us the equivalent of what we will be yielding by buying back our Spear shares. So just to be clear, that process is kind of at the tapering end given the re-rating, and we were operating now on a DIPS forward yield of around 9.7%.

And if I might add, it's always done from a retained income, never borrowing funds or utilizing any funds that's required for CapEx or maintenance of the portfolio. . Then we have a couple of questions from [ Alistair ] Anderson. Why would you consider inquiring next? Are you looking to invest lastly in industrial logistics box?

So I think our strategy is to, as a diversified fund is to look for opportunity sets in order of priority. The first priority is industrial. We will look at multi-let industrial parks. We would look at large bulk warehousing facilities and logistics facilities. Also, we would look to acquire existing within the Cape Metro, just given the fact that land costs are extremely high, together with the cost of construction. And then second on the list, just given the fact that the disposal yields on retail are very sharp at the moment, we would look to grow our convenience retail and destination retail portfolio. And thirdly, we are very focused on creating a data center exposure within our diversified portfolio. And that, in and of itself, is a dedicated work stream that's being headed up by myself and the team to bring in data center opportunities within the portfolio in the near term. And then obviously, the fourth leg of that is to whether we do a portfolio acquisition invariably within the Western Cape, there may or may not be multi-tenanted office assets that are included in that. We are not afraid of multi-tenant offices as long as they are within the nodes that we invest into, which is the Cape Town CBD, Century City, Tyger Valley, Claremont and Newlands.

Then a second question for Alistair. What is the progress of Marine Place at Paarden Eiland? When will it be completed? And what will it include?

So we are in the advanced planning phase of our Paarden Eiland development. As many know, we've been in an environment where there's been a very high interest rate environment and the risks have been elevated. The total development cost for Marine Place or Paarden Eiland is around ZAR 1.5 billion. Currently, all the properties are let and yielding. So we are not resting on our laurels, but we are also monitoring the trading environment, the interest rate environment and just the general environment for sectional title sales to ensure that when we do launch the project that it's done in a way that will generate very good profit that will offset against the development cost of the 11,000 of retail, 3,500 of flex space and 2,000 square meters of industrial space. We do know that another developer had launched a highly successful residential development in Paarden Eiland, and we are ecstatic with their success. And we also watch how they progress with those, and we do believe that we've priced our units in the similar line as what the other developer has. So we do believe it will be successful, but the sheer scale of the development does require us to secure a strategic partner and not to embark on the development on our own, given the general size and also our aversion to risk.

Then one last question we received from [indiscernible] from Catalyst. What percentage of total retail GLA does to 9.5% reversion represent? So I think Quintin did briefly mentioned, but that's plus/minus 25% of the retail portfolio of Spear. And so far, there's nothing. If anything was missed, please send your e-mails and we will answer it either directly by email or by a telephone call.

Thank you very much, and we'll be back with you in person towards the 22nd of May 2024 to deliver the final FY '24 results for Spear REIT. We thank you for logging on today, and we appreciate your support and look forward to further engagements. Take care.