Spear Reit Limited (SEA) Earnings Call Transcript & Summary

Good afternoon from beautiful Cape Town. The Noon Gun has just sounded on Signal Hill. It's just on 12:00, and thank you for joining Spear's HY '26 Pre-close Investor Presentation. The first half of the year has been a very active period for the Spear team. We have diligently focused on robust operational outcomes, maintaining a financial cadence that has kept us abreast with the forecast as well as executed on key aspects of our growth strategy during the half year. Operationally and financially, the half year has largely traded in line with management's expectations and within our forecast. Central to our operating strategy is to maintain consistent and growing rental cash flows across the diversified portfolio. I'm extremely proud how the Spear team has executed on this particular strategic objective during the half year. Equally, as a team, we are looking forward to the implementation of the 3 new acquisitions that are set to transfer into the portfolio between October 2025 and January 2026. I do believe that once these assets are stabilized within the portfolio, they will be key growth drivers that will drive the portfolio's performance over the next couple of years. Whilst detailed SENS announcements were issued on these 3 acquisitions, I will spend some time during the course of the presentation touching on key aspects of each acquisition. From a trading environment perspective, it certainly has not been a bed of roses. The trading environment does still remain tough, with muted economic growth, tariff uncertainties creeping in and fiscal slippage taking place during the period. The South African Reserve Bank's augmentation of its inflation strategy, together with its conservative approach, has also resulted in interest rate cycle being cut slower than initially anticipated. This has also weighed down on consumers, on businesses and the general SA macro. Now despite these headwinds, I'm still confident that Spear is set to achieve all of its operational and financial goals that it has set for itself during the FY '26 year. Insofar as index inclusion is concerned, I'm extremely grateful for the collaborative and cooperative relationship that we've established with the JSE in this process. Today, I can say with a reasonable degree of confidence that Spear is set to be included in the JSE All Property Index from March 2026. The JSE has advised that they will set out market communications to market participants towards the end of September, setting out both methodology and implementation processes for the new ALPI inclusion later in the beginning part of 2026. If there are any questions during the course of the presentation, please e-mail them through to [email protected], and we'll answer them straight after the presentation. Just having a look at what I'll be covering during the course of the presentation today. Spear's mission is to be the leading Western Cape focused REIT and to consistently grow distribution on an annualized basis and to operate within the top of our peer group. Today's pre-close presentation is reflective both of the execution of our mission statement but also will reflect the strategic priorities that we set out in the FY '25 results presentation in May this year. These 5 key strategic priorities and objectives for FY '26 are as follows. Portfolio growth and optimization. We'll continue to focus on maintaining income continuity and acquiring yield-enhancing assets in the Western Cape in line with Spear's investment strategy. Prudent capital management to maintain a disciplined capital allocation plan to ensure financial stability and long-term value creation for all stakeholders. To maintain shareholder alignment to uphold material inside ownership that reinforces alignment with shareholders' interest through transparent stewardship and personal investment of the underlying business. To have a sustainable growth strategy, which focuses on strategic asset growth opportunities, debt management, human capital development and the continued rollout of Spear's ESG strategy. And finally, to maintain a tenant-centric approach to continuously prioritize strong tenant relationships to support high retention rates and rent preservation. I'm confident that these objectives will continue to be achieved in our business beyond just FY '26 as I see them as core values within our business. So moving on to the salient details, the highlights package for the year to July 2025. In terms of our HY '26 distribution, we've set out a distribution tracker from March to July. Please bear in mind that August has not yet been included in these numbers. The DIPS is tracking at around ZAR 0.3677 per share. Based upon a 95% payout ratio to be approved by the Spear Board, the DPS is tracking at ZAR 0.3493 per share for the year-to-date up to July. I'm very pleased to note that we are tracking slightly above the midpoint of our guidance up to July. In terms of operational performance, year-to-date, in-force escalations have improved from 7.27% at the last reporting period to 7.31%. Occupancy rates have remained flat at 95%. However, I'm confident that we should be around 96% to 97% occupancy by the end of August. Our weighted average lease expiry has also improved to 34 months from 33 months. A lot of work has been going in, and I need to commend the leasing team for a big effort on that front to drive up escalations, to drive up lease expiry profiles. Rent reversions, just under flat on a portfolio level, not quite where we wanted to land at this time of the year. But for us, what's critical and the most optimal is tenant and rent preservation, which is always significantly cheaper than a vacancy and a relet cost. Cash collections have remained robust at 98.45% year to July across the core portfolio. Our Western Cape portfolio expansion, as the market is aware, new acquisitions of around ZAR 1.08 billion, which is in line with the FY '25 market communication at the final results presentation regarding pipeline opportunities. We acquired 3 prime real estate assets within the Western Cape, 2 industrial assets and 1 convenience retail asset, which has a GLA of around 137,090 square meters. The average acquisition yield of 9.54%, which is both accretive on a stand-alone basis and earnings enhancing to the portfolio. Our balance sheet, primed for growth. As we sit here today, we probably have the lowest loan-to-value in the SA REIT sector, but this is because we are in a growth phase within the business of 14.26%. Our interest cover ratio at 3.84x. Liquidity availability of ZAR 400 million, which is net of acquisition allocations. In terms of our solar PV portfolio, we currently have 15 assets with PV solar infrastructure, 11 new systems are under construction, which will contribute 1.5 megawatts of generation to the portfolio. Once implemented, the portfolio will have 26 PV solar assets within the PV portfolio over the 39 portfolio assets we currently own, giving us a coverage of around 67% of portfolio assets covered with PV solar. We anticipate the 11 new assets to be completed and commissioned between Q3 and Q4 2026, so FY '26. From a contribution perspective, the PV solar portfolio has contributed ZAR 10.2 million of gross revenue to the business in the reporting period up to July and NOI contribution of ZAR 6.9 million. Also worth noting, the 3 new acquisitions all have PV solar infrastructure installed, aggregated around 2.6 megawatts, which will increase our PV solar portfolio to 29 out of 42 assets, giving us a coverage of just on 70% of portfolio assets covered in PV solar, which fully aligns with our strategy in terms of our PV solar portfolio. Having a look at the portfolio at a glance. Asset value currently as at July 2025, ZAR 5.58 billion. Portfolio assets, 39 high-quality Western Cape assets, GLA under ownership, 487,317 square meters. Cost-to-income ratio, 44.90% total cost-to-income ratio. Our admin cost-to-income ratio, 6.62%, slightly lower than the prior reporting period. Looking at our tangible net asset value, currently at ZAR 4.66 billion, giving us a TNAV per share of ZAR 11.74. We raised ZAR 749 million of new equity in June 2025. There was a slight dilution of around 3.57% to our tangible net asset value. I do believe that this is transitory and that would be made up as we navigate through to the half year and full year fair value adjustments coming through in the underlying portfolio. Gross shares in issue as at the July period around 414.8 million shares. Moving along to our letting activity. During the period, we had 92,225 square meters coming up for renewal and relet. We concluded on new renewals and new lets at 89,510 square meters at an average rental reversion of 0.14%. Now there are a few reasons for the slightly below flat reversion, largely driven by the commercial portfolio. We had a long-term 10-year lease rolling off at Northgate Park. That was retenanted ahead of expiry. There was a tenant amortization included in the initial lease, which was no longer applicable. And therefore, there was a rental reversion. Noting that these reversions were within our budgets, and we had planned for them when our budgets were set, and the guidance was set at the beginning of the financial year. We were successful also in letting a stubborn vacancy in the northern suburbs of around 1,500 square meters. We still have a slightly negative impact on the average gross rental and the commercial, lowering the average rate being disclosed. We have also, if you look at industrial, we had 67,526 square meters come up for renewal and relet during the period. We did 66,431. That is also impacted by 5,100 square meters of storage space that's been taken out of letting with -- for a period of time due to a sustainability-linked CapEx program at Mega Park. We do anticipate those to -- some of those spaces to come back on stream between Q3 and Q4 FY '26. There's additional letting activity not disclosed, which was done after July of around 2,454 square meters on a hybrid retail space, which will further drive up the renewal and new let component of the retail portfolio in terms of letting activity. Having a look at the balance sheet. The balance sheet remains extremely strong from a covenant perspective, our strictest covenant on loan-to-value is 50%. We are very much below that. Our interest cover ratio covenant is at 2x. We are currently at 3.84x. Also notably, we have been doing a lot of work on the debt portfolio. FY '25, weighted average expiry was 25.97 months. That has been extended out to 30.3 months. Our weighted average fixed expiry has also been expanded out from 20 months to 27.72 months. We've compressed our weighted average cost of debt from FY '25 from 9.08% to 9.02%. We have also reduced our variable cost of debt from 9.29% to 8.84% with our weighted average cost of fixed debt. Yes, it's slightly higher than 9.01%, but we've extended out the expiry period and it gives us a lot of certainty, marginally up from 9.01% to 9.08%. Just walking through the loan-to-value sensitivity analysis. As I mentioned, the balance sheet is primed for growth. And as of July, loan-to-value of 14.26% We are doing some portfolio CapEx work across the portfolio. The roof replacement taking place at Bravo Park in Blackheath will increase LTV to -- by 0.43%. The Berg River acquisition will only increase the LTV by 0.06%. Just a reminder, the majority of the purchase consideration will be settled via Spear shares, and there's a very small debt component that will be settled using cash reserves. The Consani Business Park acquisition will increase loan-to-value by 6%. The Maynard Mall acquisition will increase our loan-to-value by 5.42%. We are looking at another acquisition opportunity, if concluded, will increase the loan-to-value by another 2%. The payment of our interim dividend will increase it by 2%. Blackheath Phase 2, which is effectively the 7,000 square meter growth warehouse opportunity at Bravo Park, which will increase our loan-to-value by 0.83%. Our first top structure in George, 4,500 square meter multi-let industrial warehouse will increase the LTV by 0.77%. And then costs associated to the initial first phase of our Paarden Eiland project will increase the LTV by 0.30%. We are considering a potential disposal later on in 2026, which could potentially reduce the LTV by just under 1%. So on an adjusted basis, over a period of 12 to 24 months, we anticipate the LTV to settle at around 31%, which still remains well below our internal strategic band of between 38% to 43%. This allows us to remain nimble, entrepreneurial and take advantage of market opportunities as and when they present themselves. Having a look at the sectoral performance. Segmenting the subsector operational performance on a more granular level reflects the strength of the diversification and also provides a look into how each subsector has performed on a year to July basis. In terms of retail, occupancy at 91.66%. Collections at 98%. Positive rent reversion print of 13.17%, with in-force escalation at 7.12%. Like-for-like NOI growth compared to the prior reporting -- same reporting period, 12.29%. We've seen that larger retailers are looking to increase market share, which is extremely encouraging as CapEx is allocated to retailers to grow their footprints. Spear has been the net beneficiary. Most recently, we have doubled the size of our adidas retail store at Sable Square and have also recently introduced a new apparel offering at Viking Business Park. In terms of the commercial portfolio, occupancy at 92.18%. Collections at 98.50%. Rent reversion at negative 7.52%. This is as a result of the retenanting of a space at Northgate, as I mentioned in the earlier slides. In-force escalations at 7.24%. And like-for-like NOI growth of 7.05%. In terms of industrial. Occupancy is 96.62%. Collections at 97%. Rent reversions positive, 1.80%. Robust in-force escalations at 7.45%. Like-for-like NOI growth, slightly down. Again, just a reminder, that is largely influenced by the 5,100 square meters of GLA that we have taken out of the letting pool for a period of time, and we are working very hard to get that back into the rental pool as soon as possible. We're also awaiting the final plan approval for phase 1 top structure at George, which is the 4,500 square meter multi-let industrial unit. And we should be -- we expect that to within the next month. And also within the next month or 2, we expect the final plan approval for the 7,000 square meter warehouse addition at Bravo Park in Blackheath. We currently have 3 potential users that are very interested in taking up the space. And as soon as we have a commitment from either one of them, together with our building plan approved, we will commence the construction of the new facility. As mentioned, there's a sustainability-linked CapEx program underway at Mega Park with the planned completion between Q3 and Q4 FY '26. And having just a bit more of a granular look on the sectoral breakdown. The sectoral breakdown is also in a state of flux with the new acquisitions that are pending. There will be an augmentation of what you see here, which I'll talk to slightly further down in the presentation. Currently, the portfolio of 39 assets are across ZAR 5.5 billion of value. Gross lettable area at 487,000 square meters. What's also notable is that of the portfolio value, 42% is commercial, 39% is industrial, 18% is retail. There will be a reshuffling of these percentages post the implementation of the 3 new acquisitions. From a revenue contribution perspective also, there will be a reshuffling. But currently, 40% of our revenue is generated from the commercial portfolio, 39% for the industrial portfolio, so it's almost an even-even split, and 17% the retail portfolio. Renewable energy does also contribute 3% to portfolio revenue at this point in time. And we do anticipate that to increase over a period of time as we continue to scale the PV solar portfolio. Just talking to the acquisitions and the impact of those acquisitions on a consolidated view, 3 acquisitions at ZAR 1.074 billion, 137,000 square meters of GLA. The occupancy rates are just under 100%. The retail vacancy has subsequently been let. So that is now no longer a vacancy. It won't be a vacancy at the transfer date, which we anticipate to be between December and January 2026. In terms of a consolidated view, really what the portfolio would look like post all of these acquisitions. We'll own 42 high-quality assets within the Western Cape with a portfolio value of around ZAR 6.6 billion. You'll see that the augmentation of valuation, 42% of the portfolio value will now then sit in industrial, 35% of the portfolio value will sit in commercial and 22% of the portfolio value will sit in retail. From a GLA perspective, equally, there will be a continuous growth in the GLA percentage of industrial, closer and closer to 70%, 20% of our GLA will be commercial and 13% of our GLA will be retail. Now just having a look, potential -- just on a more granular level, what the acquisitions, what these 3 acquisitions -- what stood out for us, what attracted us to these assets and how they'll contribute to the portfolio. Berg River Business Park in Paarl, acquisition cost of ZAR 182.1 million across 30,464 square meters. This is our first acquisition in the Drakenstein municipality. The tenant mix is generally agri, food and wine logistics focused with some garment manufacturing. The lease expiry profile is fairly benign, and we can see that the exposure from a weighted average lease expiry profile perspective has a 5.27 year WALE with 0 vacancies. Initial yield to shareholders is 9.35%. Our in-force escalation, yes, it is slightly lower than the Spear industrial portfolio in-force escalation, but it's still above the 7%. And we do see an opportunity to drive those escalations slightly higher as we take control of the asset. And also notably that the PV solar capacity installed on the site is around 1.1 megawatt. We certainly see the Paarl node as a growth node for Spear, just given the sizable industrial node that is underpinned by food, agri and the wine sector, and also the ancillary demand that is attributable to the growth in the Drakenstein region. What's also important to note is that the largest tenant, ButtaNut, has recently been acquired -- 54% of it has been acquired by PSG Capital, which will also -- has also injected additional growth capital into the business to grow the business. This is the head office. They have their manufacturing and distribution facilities for their dairy alternative drinks in addition to their spreads that take place on this particular facility. Consani Industrial Park, we acquired for ZAR 437 million. The gross lettable area is 80,657 square meters set on an erf of 10.6 hectares. This multi-let industrial park is what we deem a heavy industrial park, 6 megawatts of incoming power. This property is also fitted out with 12 gantry cranes across the various warehouses that are currently in use by tenants. Importantly, these gantry cranes are also owned by the landlord and will be effectively another value-add proposition to why tenants remain in this park, given its large power supply, given the fact that gantry cranes are operational and available. And the tenant mix is largely becomes very sticky, and we've seen that this park does offer a long-term cash flow trajectory, a long-term leasing profile for the underlying tenants that service both the local and the European market from a steel manufacturing perspective in addition to the food services and local logistics market. In terms of the initial yield attributable to shareholders, 9.71%. The weighted average lease expiry is around 3.25 years with under 1% vacancy and an in-force escalation of about 7.11%. The PV solar capacity on the site is prime for expansion, around 605 kilowatts. So we are busy investigating additional CapEx allocation to grow the PV portfolio in this park. Again, if you have a look at the average lease expiry profile within the Spear portfolio, around 18% of our portfolio comes up for renewal and relet on an annualized basis. And again, looking at the lease expiry profile from the valuation date, it is benign, and we are confident that the tenants are sticky and they'll remain in the park. And there are very few parks of this nature, of the size within the locality of Consani that can service this type of market. Then moving on to Maynard Mall. Last but certainly not least, our most recent retail acquisition, ZAR 455 million acquisition across 25,969 square meters of convenience and commuter retail area. We've acquired this asset at ZAR 17,520 per square meter in addition to additional bulk rights of 42,000 square meters that came in at a 0 value. What also attracts us to this asset is that 70% of the tenants are national retailers, essential services providers, lifestyle and fitness tenants, together with a long-term Shoprite lease that extends beyond 2033. The annual footfall of the center is around 6.5 million people annually. We regard this as a highly defensive retail asset, in our view, quite recession-proof. The initial acquisition yield prior to any capital expenditure that we implement over the asset is 9.55%, a robust weighted average lease expiry of 4.75 years with, as I mentioned, now 0 vacancy despite showing a slight vacancy that's now been let. The in-force escalation is below the Spear average. But if I take you back to the acquisition of the Emira portfolio, that was acquired at a sub-7% in-force escalation. We have done a lot of work in pushing those escalations up as renewals have come through. And you can see that per today's presentation, we have moved from a 7.27% in-force escalation on a portfolio level to 7.31% in a relatively short space of time, and we do look to overlay this onto this particular asset as well. Current PV solar capacity of 924-kilowatt hours. We are assessing options as to how we can increase the system. Again, a fairly benign lease expiry profile. And also, you can see some of the tenants reflected in the property, and we believe that these are the type of tenants that we want to be associated to within our portfolio. So having a look at the outlook and the guidance affirmation. We remain resolved in our strategy to achieve a forecast aligned outcome in FY '26, as Spear's key performance indicators continue to deliver in line with Spear's operational and financial strategy. Despite the tough trading environment, active asset management initiatives are being successfully implemented across the portfolio, with consistent milestones being achieved during the half year, which can be summarized as follows. The half year 2026 DIPS cadence is tracking slightly above the midpoint of our FY 2026 guidance. We've been successful in active vacancy mitigation and improved weighted average lease expiry and in-force escalations. Our cash collections have been robust at 98.5%. We are consistently growing our solar PV portfolio with 11 new installations and 3 additional systems post transfer of the new assets, which will take Spear's portfolio to 70% coverage, and will also push us to more -- in excess of a 12-megawatt solar portfolio. We've seen an improvement in our overall cost of debt, which has also compressed our cost of capital, which continues to make us more competitive and also to be able to do deals that are more profitable for the business. We were successful in a well-supported capital raise from our shareholders of ZAR 749 million to fund the growth strategy in line with the Spear investment strategy going forward. We're operating with a sub 30% loan-to-value post implementation of all new acquisitions and a probably stabilized interest cover ratio post implementation of this new acquisition at around 3x. Our acquisition-led growth strategy is paying off with the forthcoming implementation of these new acquisitions that will increase portfolio GLA but also increase the portfolio value to ZAR 6.65 billion prior to any fair value adjustments. From management's perspective, this displays strong key performance outcomes for the year to July FY '26, and we are optimistic and confident that we can build on the momentum that we've created in the half year. Management is pleased to reaffirm its DIPS guidance for 2026, which is said to be 4% to 6% higher than the DIPS for FY '25, subject to certain guidance assumptions, which we set out below. Our payout ratio is set to be maintained at 95% as approved by the Board of Directors. The qualification to the guidance affirmation is that there will be no loadshedding during the rest of this year. The vacancies are reduced in accordance with management's forecast, that our lease renewals are successfully concluded as per management's projections. No major tenant failures during the period. Tenants are able to successfully absorb rising costs associated with utility charges, municipal rates and any other new expenses imposed by the local authority. And there's no civil unrest in Cape Town, the Western Cape or South Africa. Any deviation from the assumptions outlined above may impact management's forecast, but we don't feel that, that would be the case for the remainder of the year. This brings us to the end of the presentation. I thank you for your time. We'll be back shortly in a few minutes to take any questions that may have come through during the course of the presentation. Thank you very much. [Break]

Welcome back. We are ready to take some Q&A on the presentation. And I'm joined here by Spear CFO, Christiaan Barnard, and we're going to just go through the questions that have come through the website.

Afternoon, everyone. Thank you, Quintin. There's not a lot of questions. So far, we have from 2 senders. The first is from -- I hope his name is correct, [ Granes Botas. ] The question is, how is the acquisition of and implementation of the Emira portfolio going? Has this been in line with your expectations?

Yes. I think there's many things in life that I'm grateful for. But in particular, I'm grateful for the strength of our team and how well they have onboarded the Emira portfolio. We haven't -- and I think it's also a testament to the counterparties we dealt with. We had sufficient time to understand the assets, to plan correctly and to also implement specific procedures to onboard these assets. So in actual fact, we have probably been on the receiving end of some tailwinds from the portfolio. It was a great quality portfolio. We've also been able to increase our weighted averages expiry, also increase in-force escalations. That's not to say that there weren't any, call it, bumps in the road. Nothing moves in a linear line. But for the most part, there has been a very smooth implementation, which, as I just want to remind you, was done ahead of schedule and also under budget.

Then we have a number of questions from Trinity from Anchor. I'll read them, okay. You are currently sitting on a lot of cash that is earmarked for acquisitions and CapEx spend. How much interest are you earning from this cash? I'll answer that. So currently, from the day we raised the capital, we placed the capital with an interest-bearing account with an outside institution, where the CapEx is safe and earning a yield accretive. But currently, it's earning 8 points of a compounding interest, which we're accumulating. But of that money we have, as Quintin mentioned in the presentation, we started rolling out the CapEx into a large number of our new solar projects, which is then obviously will be start earning in, we believe, in the first weeks of September, that will immediately kick far above the 10% earnings from the solar systems. The second question is, what is your target sectoral split by GLA over the long term?

Yes. So I think the -- it's always been our intention to have the lion's share of the portfolio to remain industrial. So if I could wave a magic wand, I'll probably look at around a 30% split on retail, 30% split on commercial and the balance split in industrial. And that also talks to -- it's not just one type of industrial, it's going to be a split of small, medium, large industrial logistics, manufacturing, urban logistics so that we always expose ourselves to one regional dynamic within the real estate space, but within the subsectors that we invest into. We're exposed to a broad rental base from your kind of slightly lower rate per square meter for a user that simply cannot pay the kind of premium rentals at a more modern logistics facility would offer, less so to the extent on commercial. We would only invest into regions like the Cape Town CBD, Century City, the southern suburbs and the northern suburbs of Cape Town. And therefore, we would maintain a high-quality rental through rate. And on the convenience retail portfolio, that is a strategy to maintain a convenient retail focus with some destination retail, but led by convenience retail, just to talk to the actual subsectoral split dynamics.

The third question from Trinity is, given that the commercial reversions were negatively impacted by one long-term lease roll off, as you mentioned, do you foresee commercial reversions turning positive in the second half of the financial year?

That certainly is the strategy, it's to drive rental growth across all segments of the portfolio. But as I mentioned, for us, rent preservation and tenant preservation is critical. It's far cheaper to take a slight reversion. Bearing in mind that we set our budgets 1 year in advance. We know what's coming up for renewal and relet. We provide within our budgets for assumptions of vacate. We also provide for a slightly muted growth in particular of tenants that are coming up for renewal, whether they renew or not, just as a guardrail to ensure that our cash flow that we're forecasting that informs our guidance is always protected.

The last question from Trinity. What's Maynard Mall's trading density at the moment?

So of the reporting retailers, it's just on about ZAR 2,750 per square meter.

Then the last question that we've received so far from Michael Porter from Harvard House. I think it's a bit of a two part. I'll do the one and you can do the balance. You haven't mentioned the new anchorage development at Paarden Eiland, and it doesn't feature in your adjusted LTV bridge. How has the plans for the development changed? I'll do that. Regarding the LTV bridge, we have a small amount of professional fees included within the LTV bridge. That is because we are planning to spending that CapEx to make sure that we can establish our feasibility, get our rights in place, have all the plans in place because we do not want to over capitalize on the site and having -- if we do not get our final rights approval done. And that is where Quintin can then answer in terms of how the development has changed over the plan.

Yes. So I think it's -- we're an income fund. All of the assets currently in Paarden Eiland are tenanted and yielding. We have taken a phased approach. As Christiaan mentioned, you'll see towards the back end of the LTV sensitivity analysis, there's about a 0.30% impact on loan-to-value as we move on, call it, a Phase 1 approach of a high-voltage room, a unigear room, which is where the kind of initial cost will come through whilst we finalize the development mix that will be developed on site. As soon as we finalize that, we will put out a detailed communication to the market as to the status of the anchorage development within Paarden Eiland. As it stands now, we do anticipate in the next couple of months to give a bit more clarity on the development of the 500-plus residential units, the 8,000-odd retail, the 2,000 industrial and 2,000 commercial. But we are at a critical junction now with our land use management process that we are not yet able to give a full update, which we will do in due course.

There's nothing else on the e-mail. And if we have missed a question, comes in late, we will answer you via e-mail. Maybe just before Quintin close off, our results will be out on the 20th of October, our interim results. So please look out for that.

That brings us to the end of the Q&A. Thank you very much for joining us today. And as Christiaan said, if there are any questions, please feel free to reach out, and we're always accessible. And thank you for your support. God bless.

Thank you.