Fairvest Ltd Pre-Close Call and Business Update

September 22, 2026

Darren Wilder: To Abby for hosting us today. That is just the agenda for the day. Jacques, if you could just pull that up for us, please. That is our agenda. Sorry, there was a little bit of a lag. I will present together with Jacques and take you through the agenda. If we can move on to the next slide and just have a look. I am just going to give you a really brief operational update, and where our operational strength sits before we start looking at the numbers. What differentiates us in the marketplace? It is our opinion that it is our operational strength that is our biggest differentiator. Fairvest remains a focused retail property fund. We are committed to simplicity and hands-on asset management and property management. We service the underserved South African retail markets on a national basis.

Speaker #1: To APO for hosting us today. That's just the agenda for the day. Željko, if you could just pull that up for us, please.

Speaker #2: Sure.

Speaker #1: That's our agenda. Sorry, there was a little bit of a lag. I will present together with Željko and take you through the agenda. If we can move on to the next slide and just have a look—I'm going to give you a really brief operational update on where our operational strength sits before we start looking at the numbers.

Speaker #1: So what differentiates us in the marketplace, and in our opinion, it's our operational strength that is our biggest differentiator. Fairvest remains a focused retail property fund.

Speaker #1: We're committed to simplicity and hands-on. Hands-on asset management and property management. We service the underserved South African retail markets on a national basis. So from history, we know our strength is being a focused fund, a focused retail fund.

Darren Wilder: From history, we know our strength as being a focused fund, a focused retail fund. If you couple to that our experience and hands-on management team approach, we know that also delivers results. Property, as I always say at the beginning of every presentation, it is simple. We lease space, and we collect rentals. Looking forward, the fund will maintain its 100% payout ratio. We will always have a conservative loan-to-value. This is supported, and this will come through in the presentation. It is supported by positive rental aversions, a 29-month WALE, and with built-in escalations above inflation. You will also see our balance sheet is robust, remains conservative. Just Fairvest at a glance. We have just over 1 million square meters under roof, give or take 650,000 of that is retail. Our vacancy rates have remained stable. As of August, we are sitting at 5.1%.

Speaker #1: And if you couple to that our experience and hands-on management team approach, we know that also delivers results. Property, as I always say at the beginning of every presentation: it's simple, we lease space and we collect rentals.

Speaker #1: Looking forward, the fund will maintain its 100% payout ratio; you will always have a conservative loan-to-value. This is supported and will come through in the presentation.

Speaker #1: It's supported by positive rental reversions, a 29-month WALE, and with built-in escalations above inflation. You'll also see our balance sheet is robust and remains conservative.

Speaker #1: So just Fairvest at a glance. We've got just over a million square meters under roof; give or take, 765,000 of that is retail. Our vacancy rates have remained stable.

Speaker #1: As of August, we're sitting at 5.1%. We're forecasting to be under 4.5% by year-end. We have 132 assets under management. We had a nice uptick in our market capitalization, which increased to $15.8 billion.

Darren Wilder: We are forecasting to be under 4.5% by year-end. We have 132 assets under management. We had a nice uptick in our market capitalization, which increased to ZAR 15.8 billion, from ZAR 13.8 billion in March. You would have noticed that Fairvest also elected not to participate in Dipula's accelerated book build. Our interest has reduced to 20.1%. We continue to prioritize and allocate capital towards direct acquisitions within our own portfolio, and we will assess any future Dipula capital raises on their merits. That is where our thinking is on that note. Let us have a look at the highlights. You can see we are operationally strong. You can see what a focused strategy can deliver, and clipped onto that is a disciplined execution of the strategy, while we also lay the foundation for future growth. Let us take a look at the slide quickly.

Speaker #1: From $13.8 billion in March. And you would have noticed that Fairvest also elected not to participate in the Pillars accelerated book build. So our interest has reduced to 20.1%.

Speaker #1: So we continue to prioritize and allocate capital towards direct acquisitions within our own portfolio, and we will assess any future deployed capital allocators on their merits.

Speaker #1: So that's where our thinking is on that note. Let's have a look at the highlights. You can see that we are operationally strong. You can see what a focused strategy can deliver.

Speaker #1: And clipped onto that is a disciplined execution of the strategy, while we also lay the foundation for future growth. So let's take a look at the slide quickly.

Speaker #1: So we will meet our guidance. I can confirm my distributions per share are expected to be at the upper end of guidance. The guidance was 11 to 13 cents.

Darren Wilder: We will meet our guidance, and can confirm our distributions per B share, is expected to be at the upper end of guidance. The guidance was 11% to 13%, which translates to ZAR 0.534 to ZAR 0.544 per share. Retail revenue is sitting up at 71.4%. That means by revenue, we generate 71.4% of our business through our retail assets. You will notice from this slide that we went into the markets earlier on in the year, and we raised ZAR 900 million through an accelerated book build. You will also have noticed that Fairvest has now begun its DMTN program, and we got a rating of zaAAA, a national scale by S&P Global Ratings, which was opening access to us with the debt capital markets, and we hope on competitive terms. Looking at fibertime, which is our investment in Onepath.

Speaker #1: Sorry, 11 to 13%, which translates to 53.4 to 54.4 cents per share. Retail revenue is sitting up at 71.4%. That means, by revenue, we generate 71.4% of our business through our retail assets.

Speaker #1: You'll notice from this slide that we went into the markets earlier on in the year, and we raised R900 million through an accelerated book build.

Speaker #1: And you will also have noticed that Fairvest has now begun its DMTM program, and we've got a rating of ZAAA on a national scale by S&P.

Speaker #1: This is opening access for us to the debt capital markets, and we hope on competitive terms. Looking at WE Fiber, which is our investment in One Path,

Speaker #1: Our total investment in one path, as of August, is $1.2 billion. We have bought approval to deploy up to a maximum of $1.5 billion.

Darren Wilder: Our total investment in Onepath as of August is ZAR 1.2 billion. We have board approval to deploy up to a maximum of ZAR 1.5 billion. We currently own 62.4% of Onepath. You will also notice that the net distribution from this investment has risen from 14.4% to 15.1%. Every rand of that return has been ungeared. With now debt terms credit approved, to 30% loan to cost, we expect yields to even improve further from here. Having a look at our latest acquisitions, you can see our two acquisitions to Zim Mall and to GalaFerry, both Shoprite anchored assets. You can also see the accreted yields that we acquired these assets for. We have a strong pipeline of acquisitions lined up.

Speaker #1: We currently own 62.4% of One Path. You'll also notice that the net distribution from this investment has risen from 14.4% to 15.1%. Every rand of that return has been ungeared.

Speaker #1: We've now got debt terms credit approved. To 30% loan-to-cost, we expect yields to even improve further from here. Having a look at our latest acquisitions, you can see our two acquisitions: Zenewall and Gala Ferry.

Speaker #1: Both Shoprite-anchored assets and also seeing their creative yields that we acquired these assets for. We have a strong pipeline of acquisitions lined up.

Speaker #1: The market is getting tighter from a pricing perspective, but we are still filing a decent and healthy line of assets that we will acquire.

Darren Wilder: The market is getting tighter from a pricing perspective, but we are still finding a decent and healthy line of assets that we will acquire, all of which will be accretive to rents. Just to recap, we are expected to deliver to the upper end of guidance. We raised ZAR 900 million in new equity. We have attractive acquisitions, opportunities that sit in our low-income retail focus, and our vacancies, we are forecasting should end at below 4.5% as of September. Just have a look at this slide. Let us look at the positive rental reversion rate of 5.6%. You can see that shows even more core operational strength. Flip it on to that metric, we have a weighted average built-in escalation of 6.7% and a weighted average release term of 29 months. If we have a look at our leasing activity, leasing has been strong across the portfolio.

Speaker #1: All of which will be accrued to rates. Okay, so just to recap, we expected to deliver to the upper end of guidance. We raised R900 million in new equity.

Speaker #1: We have attractive acquisition opportunities that sit within our low-income retail focus. And our vacancies, we are forecasting, should end at below 4.5% as of September.

Speaker #1: So, just have a look at this slide. Let's look at the positive rental aversion rate of 5.6%. You can see that this shows even more core operational strength.

Speaker #1: Clipped onto that metric, we have a weighted average built-in escalation of 6.7%, and a weighted average lease term of 25 years. If we have a look at our leasing activity, leasing has been strong across the portfolio.

Speaker #1: We can have a look at the weighted average escalations on new deals, sitting at 7.1%. When we look at the weighted average lease terms—sorry, someone is on mute.

Darren Wilder: You can have a look at the weighted average escalations on new deals sitting at 7.1%. When we look at the weighted average lease terms, sorry, someone on mute. If you look at our weighted average lease term, we are doing new deals at 39 months, so it is strong. Having a look at our renewals, strong set of renewals, for the year, slightly up on budget, reverses again, strong at 5.6%. Again, weighted average escalation is above inflation, sitting at 6.9%. The weighted average lease term of 37.8 months. So you can see from an operational perspective, we have got a strong leasing team doing new deals and strong renewals team with a strong focus on driving longer lease terms. We are still trying to build in a stronger weighted average escalation. I do not believe we will get it higher than where it is.

Speaker #1: If you look at our weighted average lease term, we're doing new deals at 39 months, so it's strong. Having a look at our renewals—a strong set of renewals.

Speaker #1: For the year, slightly up on budget, reversed again strong at 5.6%. Again, weighted average escalations above inflation, sitting at 6.9%. The weighted average lease term of 37.8 months.

Speaker #1: Sorry, 37.8 months. So, you can see from an operational perspective, we've got a strong leasing team doing new deals, and a strong renewals team with a strong focus on driving longer lease terms.

Speaker #1: And we're still trying to build in a stronger, weighted-average escalation. I don't believe we'll get it higher than where it is. The market has changed somewhat over the last six months.

Darren Wilder: The market has changed somewhat over the last six months. Let us have a look at our main business unit or our core business unit, which is the retail portfolio. This portfolio is the engine of Fairvest, 79 assets, 606,000 square meters. Over the last six months of operation, we added 34,000 square meters of space to that portfolio, which are the three acquisitions, that one came from the previous year and two from this year. Our vacancies held really steady in this portfolio. We are sitting at 4.3%. What is important here is to understand that vacancy sits predominantly in secondary spaces in our portfolio, and our team is working hard to let that space. As I have always said, this type of retail portfolio, because it is a smaller open air, grocery anchored center with a first floor component to it, will always sit between 3% and 4%.

Speaker #1: Let's have a look at our main business unit, or our core business unit, which is the retail portfolio. This portfolio is the engine of Fairvest.

Speaker #1: 79 assets, 606,000 square meters. Over the last six months of operation, we added 34,000 square meters of space to that portfolio, which are two of the three acquisitions—one came from the previous year.

Speaker #1: And two from this year. Our vacancies have held really steady in this portfolio. We're sitting at 4.3%. What's important here is to understand that vacancy sits predominantly in secondary spaces in our portfolio.

Speaker #1: And our team is working hard to let that space. But as I've always said, this type of retail portfolio, because it's a smaller open-air grocery anchored center, with the first four components to it, will always sit between three and four percent.

Speaker #1: What's nice to see is our tenant retention is up. And as you can also see, tenants are renewing at 5% reversion, so the average rentals are now up at R181 per square meter.

Darren Wilder: What is nice to see is our tenant retention is up. As you can also see, tenants are renewing at a 5% reversion. The average rentals are now up at ZAR 181 per square meter. Again, a strong built-in escalation of 6.5%. Effectively, this income just grows by 6.5% without us having to do or sign any other leases. Very, very strong metrics. Looking at the deal flow in the retail portfolio, we have signed 280 leases and new deals over 14,000 square meters. Close to 7% of our retail portfolio are let to what we say new tenants, and that is really how we hold our vacancy low at that 4.5%, 5%. These deals, if you have a look, they were done at higher rentals, ZAR 147 a square meter. Again, strong built-in escalations of just under 7%.

Speaker #1: Again, a strong built-in escalation. Of six and a half percent. So effectively, this income just grows by six and a half percent without us having to do or sign any other leases.

Speaker #1: So, very, very strong metrics. The deal flow in the retail portfolio: we've signed 280 leases and new deals, over 14,000 square meters. Those two are 7% of our retail portfolio. We are led to what we say, new tenants.

Speaker #1: And that's really how we keep our vacancy low, at that 5%, 4.5%. So these deals, if you have a look, were done at higher rentals.

Speaker #1: 147 rand per square meter. Again, strong built-in escalations of just under 7%. Looking at the renewal slide in the retail portfolio, 300 leases renewed.

Darren Wilder: Looking at the renewal slide of the retail portfolio, 300 leases renewed. Again, a strong business. Rentals up at 4.9%. Deals around 2.5%, 3% ahead of budget. Again, weighted average escalation strengthened a little to 6.8%. Again, well above inflation. Very interesting point and something worth noting is in the renewals portfolio, we are almost at 46 months. Our WALE is almost 46 months. Also strong metrics. Let us have a look at the office portfolio. The office, everyone expects a little bit of bad news out of the office portfolio, but this portfolio this year has defied that thought. We have got tenants renewing with us, paying 6% more on renewals. Our average rentals rose to ZAR 140 a square meter, and strong weighted average built-in escalations in this business unit at 7.1%, with a weighted average lease expiry term of 30 months.

Speaker #1: Strong again, a strong business. Rentals are up at 4.9%. Deals ran two and a half to three percent ahead of budget. And again, the weighted average escalation strengthened a little to 6.8%.

Speaker #1: Again, well above inflation. A very, very interesting point—and something worth noting—is in the renewals portfolio, we are almost at 46 months. Our WALE is almost 46 months.

Speaker #1: So, also strong metrics. All right, so I'll take a look at the office portfolio. The office—everyone expects a little bit of bad news out of the office portfolio.

Speaker #1: But this portfolio this year has defied that thought. We've got tenants renewing with us, and 6% more on renewals. Our average rentals rose to 141.

Speaker #1: Sorry, 140 rand per square meter, and strong built-in and weighted average built-in escalations in this business unit at 7.1%, with a weighted average lease expiry term of 30 months.

Speaker #1: So again, a strong business unit this year. Having a look at a bit of the granular detail: new leasing in the office portfolio has sharply increased this year.

Darren Wilder: Again, strong business unit this year. Having a look at a bit of the granular detail. Releasing in the office portfolio sharply increased this year. We broke for the first time, the 9% vacancy in this business unit, which we hope to maintain. You can see we had to let go 34,000 square meters to achieve that. Average rental was ZAR 135 a square meter, roughly 16%, 17% higher than last year. On renewals, we had positive reversions at 6%, up from 4.7%, so also good. Weighted average escalation in that business unit at 7.2%, and a weighted average lease term of 36 months. Also strong performance business unit. Having a look at the Industrial portfolio. Industrial really always has been our strongest pricing story. Reversions were up at 8.7%. Vacancies sitting at 4.2%, probably the highest vacancy we have carried in this portfolio in the last three years.

Speaker #1: So, we broke for the first time a 9% vacancy in this business unit, which we hope to maintain. You can see we had to let 34,000 square meters to achieve that.

Speaker #1: Average rental was R135 per square meter, roughly 16 to 17% higher than last year. On renewals, we had positive reversions, at 6%, up from 4.7%.

Speaker #1: So also good. Weighted average escalation in that business unit at 7.2%, and a weighted average lease term of 36 months. Also strong performance for this business unit.

Speaker #1: Having a look at the industrial portfolio: industrial really always has been the strongest pricing story. Reversions were up at 8.7%. Vacancies are sitting at 4.2%.

Speaker #1: It's probably the highest vacancy we've carried in this portfolio in the last three years, and that's predominantly due to one or two assets that are holding the vacancies in.

Darren Wilder: That is predominantly due to one or two assets that are holding the vacancies in. Understanding that this is only 270,000 square meters of GLA, so the vacancy can swing on smaller numbers. Again, weighted average built-in escalation of 7.2%. Average rental, gross rental per square meter, still sitting under 60. We still see some positive growth there and growth potential there. A weighted average lease expiry term of 30 months. Looking at the granular detail of this portfolio, again, you can see, really in this business unit, the renewals are showing good strength, good statistics, a weighted average lease term of 24 months, weighted average escalation sitting at just over 7.3, high rental reversions of 8.7, and we are well ahead of budget in this business unit. If you look at the new deals, strong leasing on the new deals.

Speaker #1: Understanding that this is only 270,000 square meters of GLA, so the vacancy can swing on smaller numbers. But again, weighted average built-in escalation of 7.2%.

Speaker #1: Average gross rental per square meter is still sitting under 60. So we still see some positive growth there, and growth potential. And a weighted average lease expiry term of 30 months.

Speaker #1: Looking at the granular detail of this portfolio, again, you can see in this business unit the renewals are showing good strength—good statistics.

Speaker #1: Weighted average lease term of 24 months. Weighted average escalation sitting at just over 7.3%. High rental reversions of 8.7%. And we are well ahead of budget in this business unit.

Speaker #1: But if you look at the new deals, strong leasing on the new deals. As we say, we really let it at R52 a square meter.

Darren Wilder: As we say, we are reletting at ZAR 52 a square meter. The average in the portfolio is sitting up at 59. Again, strong weighted average lease escalations. Nice weighted average lease term. Again, good cash flow generated by this business unit with a strong set of metrics. I am going to hand over to Jacques, who will just give you a quick financial update, and then we will take some questions and answers. Jacques, over to you.

Speaker #1: The average in the portfolio is sitting up at 59. Again, strong weighted average lease escalations; nice weighted average lease term. So again, good cash flow.

Speaker #1: And generated by this business unit, with a strong set of metrics. I'm going to hand over to Jacques, who will give you a quick financial update, and then we'll take some questions and answers.

Speaker #1: So Jacques, over to you.

Speaker #2: Thank you, Darren. On the balance sheet side, we expect our LTV at year 8 to be below 27%. That is broadly in line with what we had at entrance, which was 26.6%.

Jacques Kriel: Thank you, Darren. On the balance sheet side, we expect our LTV at year-end to be below 27%. That is broadly in line with what we had at entrance of 26.6%. There has been some movements on the balance sheet with our capital raise in April. We also had the transfer of the two KZN assets in July. Then we also had further investments in Onepath. The acquisitions and the Onepath investments largely offset our capital raise that we had. We are busy with our year-end valuations. As per normal, a third of our portfolio will be valued by external valuers. We expect to see an increase in the portfolio value. I think a lot of that is driven by underlying growth in the portfolio, as you have seen on the reversions that we have achieved and on the like-for-like growth that we reported at entrance.

Speaker #2: And there have been some movements on the balance sheet with our capital raise in April. We also had the transfer of the two KZN assets in July.

Speaker #2: And then we also had further investments in one part. The acquisitions and the one-part investments largely offset our capital raise that we had.

Speaker #2: And we are busy with our year end valuations. As per normal, a third of our portfolio will be valued by external valuers. We expect to see we expect to see an increase in the portfolio value I think a lot of that is driven by underlying growth in the portfolio.

Speaker #2: As you've seen on the reversions that we've achieved and on the life for life growth that we reported at entrance. So that will translate we expect that to translate in an increase in the valuation of the portfolio.

Jacques Kriel: That will translate. We expect that to translate in an increase in the valuation of the portfolio. Our fixed debt component is expected to be at 60% or above 60%. That is a decrease from what we reported in March. But it is within the band that we are mandated to operate in that 60% to 70% band, with a low LTV of mid-20s. Our relative exposure to the interest rates is quite low and therefore, we are comfortable at these levels. Given our low LTV, all of our bank covenants, LTV, as well as ICR governance are expected to be comfortably met. As Darren mentioned previously, we have commenced our first bond issuance at the end of September. In anticipation of that, we received the zaAAA credit rating from S&P Global Ratings.

Speaker #2: Our fixed debt component is expected to be at 60% or above 60%. That is a decrease from what we reported in March, but it is within the band that we are mandated to operate in.

Speaker #2: In that 60% to 70% band, with a low LTV in the mid-20s. Our relative exposure to interest rates is quite low, and therefore we are comfortable at these levels.

Speaker #2: Given our low LTV, all of our bank governance LTV, as well as ICR governance, are expected to be comfortable with net. As Darren mentioned previously, we have commenced our first bond issuance at the end of September.

Speaker #2: So, in anticipation of that, we received the ZAAA credit rating from S&P. We've got our auction scheduled for the 29th of September.

Jacques Kriel: We have got our auction scheduled for 29 September, and we are targeting to raise ZAR 500 million with the option to upsize to ZAR 750 million. I think this does show the market that we have got access to other sources of funding other than just bank funding. It shows our business is maturing. As Darren mentioned, our distribution, the B share, is expected to be at the upper end of the guidance of 11% to 13%. Thank you, Darren. Guys, thank you. That is the end of the update or the pre-close update. Are there any questions?

Speaker #2: And we're targeting to raise $500 million, with the option to upsize to $750 million. I think this does show the market that we've got access to other sources of funding.

Speaker #2: Rather than just bank funding. And it is it shows how our business is maturing. The as Darren mentioned, our distribution per V share is expected to be at the upper end of the guidance of 11 to 13%.

Speaker #2: Thank you, Darren.

Speaker #1: All right, guys. Thank you, Deputy, for the update—the pre-close update. Are there any questions?

Speaker #3: Thank you, Jacques and Darren. Maybe I'll just start with a few questions on your fiber investment. So, you're currently sitting on $1.2 billion invested in OnePath.

[Analyst]: Thank you, Jacques and Darren. Maybe I will just start with a few questions on your fiber investment. You are currently sitting on ZAR 1.2 billion invested in Onepath, and that is against a ZAR 1.5 billion sort of approved board capacity. How should we think about the pace of deployment from here on? Is that ZAR 1.5 billion the ceiling to investment? If fibertime sort of achieves their ambition of connecting, I think they had said 2 million homes by 2028, what does that sort of imply for Onepath's capital requirements? Could the opportunity then become materially larger than the ZAR 1.5 billion that you currently have approved by the board?

[Analyst 1]: Thank you, Jacques and Darren. Maybe I will just start with a few questions on your fiber investment. You are currently sitting on ZAR 1.2 billion invested in Onepath, and that is against a ZAR 1.5 billion sort of approved board capacity. How should we think about the pace of deployment from here on? Is that ZAR 1.5 billion the ceiling to investment? If fibertime sort of achieves their ambition of connecting, I think they had said 2 million homes by 2028, what does that sort of imply for Onepath's capital requirements? Could the opportunity then become materially larger than the ZAR 1.5 billion that you currently have approved by the board?

Speaker #3: And that's against a $1.5 billion sort of approved board capacity. How should we think about the pace of deployment from here on? So, is that $1.5 billion the ceiling to your investment?

Speaker #3: And is fiber time sort of achieves their ambition of connecting? I think they'd say 2 million homes by 2028. What does that sort of imply for OnePath's capital requirements?

Speaker #3: Could the opportunity then become materially larger than the $1.5 billion that you currently have approved by the board?

Speaker #1: So yes, we believe, and we understand from the OnePath team, that the opportunity will be far greater than the $1.5 billion that we've committed to.

Jacques Kriel: Yes, we believe and we understand from Onepath teams that the opportunity will be far greater than the ZAR 1.5 billion that we have committed to. We have board approval to invest up to ZAR 1.5 billion. From my perspective, that was the maximum we would invest, as it represents probably 9%-10% of our asset base, and we believe that is adequate. As you can see, we are sitting at ZAR 1.2 billion. We own 62% of Onepath. Onepath will go and find additional shareholders that are currently bringing them on through Strate. I would say we would be through our. We are going to raise some debt in Onepath. I would say looking at the drawdowns by March, April next year, we probably would be sitting at the April, May, June, somewhere around there, we will be sitting at the ZAR 1.5 billion mark.

Speaker #1: We have board approval to invest up to $1.5 billion. From my perspective, that was the maximum we would invest, as it represents probably 9 or 10% of our asset base.

Speaker #1: And we believe that's adequate. So, as you can see, we're sitting at $1.2 billion. We own 62% of OnePath. So OnePath will go and find additional shareholders.

Speaker #1: I'm currently bringing them on through each draw. I would say we would be through our—we're going to raise some debt in OnePath. I would say, looking at the drawdowns by March or April next year, we probably would be sitting at the April, May, June—somewhere around there—would be sitting at the $1.5 billion.

Speaker #3: Yes. And with your current sort of yield from OnePath around 15%, I mean that's obviously well above conventional property yields. What do you think is the principal, I suppose, risk investors should associate with that additional return from fiber versus traditional property?

[Analyst]: Yes. With your current sort of yield from Onepath around 15%, that is obviously well above conventional property yields. What do you think is the principle, I suppose, risk investors should associate with that additional return from fiber versus traditional property?

[Analyst 1]: Yes. With your current sort of yield from Onepath around 15%, that is obviously well above conventional property yields. What do you think is the principle, I suppose, risk investors should associate with that additional return from fiber versus traditional property?

Speaker #1: Look, I think each shareholder can assess that themselves, and they would associate and attribute risk to how they see the investment. It's obviously not a property investment.

Jacques Kriel: Look, I think each shareholder can assess that themselves, and they would associate and attribute risk to how they see the investment. It is obviously not a property investment, but we do have assets in the form of strings and poles. For us, it is a logic that drives, in our business, our retail portfolio. There are roughly 50 million homes in South Africa, and in townships, probably 20% of those are connected. As I have said before, that does not show a demand problem. It is an infrastructure and affordability problem. That is the kind of problem we understand because we are already trading in these communities. In our world, affordable connectivity strengthens education, employment, and entrepreneurship in exactly the communities that support our retail assets. It is a genuine alignment of return and impact. We do not see or attribute any form of risk to this investment. It is well thought through.

Speaker #1: But we do have assets in the form of strings and poles. And for us, it's a logic that drives our business, our retail million homes in South Africa.

Speaker #1: And in townships, probably 20% of those are connected. So, as I've said before, that doesn't show a demand problem; it's an infrastructure and affordability problem.

Speaker #1: And that's the kind of problem we understand, because we're already trading in these communities. So, in our world, affordable connectivity strengthens education, employment, and entrepreneurship in exactly the communities that support our retail assets.

Jacques Kriel: That is the kind of problem we understand because we are already trading in these communities. In our world, affordable connectivity strengthens education, employment, and entrepreneurship in exactly the communities that support our retail assets. It is a genuine alignment of return and impact. We do not see or attribute any form of risk to this investment. It is well thought through.

Speaker #1: So, it's a genuine alignment of return and impact, and we don't see or attribute any form of risk to this investment. It's well thought through.

Speaker #1: It's managed carefully. We're very comfortable with where we are and where we're going.

Jacques Kriel: It's managed carefully. We're very comfortable with where we are and where we're going.

Speaker #3: Right. And then, still on OnePath, you have a question here from Trinity: When was the additional investment in OnePath deployed? And could you also provide the cost of funding on the geared component?

[Analyst]: And then just still on Onepath, we have a question here from Trinity. When was the additional investment in Onepath deployed? Could you also provide the cost of funding on the geared component?

[Analyst 1]: And then just still on Onepath, we have a question here from Trinity. When was the additional investment in Onepath deployed? Could you also provide the cost of funding on the geared component?

Darren Wilder: Jacques you can have that. [inaudible]

Speaker #1: Jacques, you can roll that. You got that.

Speaker #2: So, I mean, we invested an additional approximately R500 million up to the end of August in OnePath, and that was done equally over the period.

Jacques Kriel: Well, we invested an additional approximately 500 million, up to end of August in Onepath. That was done equally over the period. We do monthly draws as they roll out. The assumption on that can be that it was done equally over the period. On the cost of funding, there is no bank funding within Onepath yet. That will only be deployed in the new financial year. At that point in time, we will report on new costs, on margins that we're getting as soon as we deploy that funding, but that will only be from October onwards.

Speaker #2: We do monthly draws as they roll out. So the assumption on that can be that it was done equally over the period. There is also on the cost of funding, there is no funding bank funding within that within OnePath yet.

Speaker #2: That will only be deployed in the new financial year. So, at that point in time, we will report on new costs on margins that we're getting as soon as we deploy that funding.

Speaker #2: But that will only be from October onwards.

Speaker #3: All right. And then I'm going to just move over to the retail sector. You have a few questions in the chat on that. First question from Anda.

[Analyst]: All right. Then I'm going to just move over to the retail sector. You have a few questions in the chat on that. First question from Anda. How would you characterize impact of higher transport costs on footfall and basket mix with any retail centers?

[Analyst 1]: All right. Then I'm going to just move over to the retail sector. You have a few questions in the chat on that. First question from Anda. How would you characterize impact of higher transport costs on footfall and basket mix with any retail centers?

Speaker #3: How would you characterize the impact of higher transport costs on footfall and basket mix within any retail centers?

Speaker #1: That's a great question, Rees. We've taken that question before. Would you like to answer it?

Jacques Kriel: That's a great question. Riaz, we've taken that question before. Would you like to answer it?

Darren Wilder: That's a great question. Riaz, we've taken that question before. Would you like to answer it?

Speaker #4: Thanks, Darren. Thanks, Anda. Realistically, the majority of Fairvest retail assets are characterized as essential shopping. So our supermarkets are your daily shop where individuals are buying their bread, milk, and groceries.

Riaz Kader: Thanks, Darren. Thanks, Anda. I think the majority of Fairvest retail assets are characterized as essential shopping. Our supermarkets are your daily shop, where individuals are buying their bread and milk and groceries. From a fashion perspective, we have value fashion, Jet, Pepkor, school clothes, and the like. It's really essentials. It's convenient shopping in terms of the catchment areas. From the trading densities we've monitored, we haven't seen any real impact on those inflationary transport costs on our tenant base. Again, it's essential shopping. I can imagine that there's some inflationary pressure on the credit shoppers, but our retail assets are generally your cash-based retailers and your essentials, that our daily shoppers are shopping at. We haven't seen any negative impact at the moment from inflationary costs.

Speaker #4: And from a fashion perspective, we have value fashion: Jet, Pepco, school clothes, and the like. So it's really essentials. It's convenient shopping in terms of the catchment areas.

Speaker #4: And from the trading densities we've monitored, we haven't seen any real impact from those inflationary transport costs on our tenant base. Again, it's essential shopping.

Speaker #4: I can imagine that there's some inflationary pressure on the credit shoppers. But our retail assets are generally your cash-based retailers and your essentials, that our daily shoppers shop in.

Speaker #4: So, we haven't seen any negative impact at the moment from inflationary costs.

Speaker #1: And sorry, Rees, would you also just take the question from John while you're on the screen? And if you scroll a little bit further down, there's another operational question.

Jacques Kriel: Sorry. Riaz, would you also just take the question from John while you're on the screen?

Darren Wilder: Sorry. Riaz, would you also just take the question from John while you're on the screen?

Riaz Kader: Yes.

Jacques Kriel: If you scroll a little bit further down, there's another operational question that relates to the portfolio itself.

Darren Wilder: If you scroll a little bit further down, there's another operational question that relates to the portfolio itself.

Speaker #1: That relates to the portfolio itself.

Speaker #2: Yeah, so thanks, Darren. Joan, thank you. In terms of clicks, we are discussing the opportunities. We've concluded one deal with the new brand, and a second site.

Riaz Kader: Yeah. Thanks, John. Thank you. In terms of Clicks, we are discussing the opportunities. We have concluded one deal with a new brand and a second site. What we are finding are the retailers, particularly the retailers that enter our shopping centers, go through cycles. They have got targets in terms of store roll-outs. Also, one of the avenues for growth for them is strategic roll-out of new stores. There is appetite, and it changes from retailer to retailer at different times of the year. A great example, we ran an internal analysis in terms of TFG, in terms of space they have given up. Previous two rounds of space that they have given up, we have let all the space, and the majority of the space has been let to national tenants.

Speaker #2: What we find in the retailers, particularly the retailers that enter our shopping centers, is that they go through cycles. They've got targets in terms of store rollouts, and one of the avenues for growth for them is the strategic rollout of new stores.

Speaker #2: So these appetites—and it changes from retailer to retailer at different times of the year. A great example: we ran an internal analysis in terms of TFG, in terms of space they've given up.

Speaker #2: And with previous two rounds of space that they've given up, we've let all the space. And the majority of the space has been let to national tenants.

Speaker #2: So, location and market share—if those boxes are ticked, which in many cases our assets represent—there is demand for new store rollouts with the various national tenants.

Riaz Kader: Location, market share, if those boxes are ticked, which in many cases our assets represent, there is demand for new store roll-outs with the various national tenants. In terms of cautious roll-outs, tenants are looking at where they are rolling out new stores. If there are market shares, they run their feasibilities. So they are cautious. But in our segment and our sector, we are seeing appetite for new stores and demand, as can be seen on statistics for retail new deals. There is still very much demand for our assets and our profile and location.

Speaker #2: In terms of cautious rollouts, tenants are looking at where they're rolling out new stores. And if they are market shares, they run their feasibilities.

Speaker #2: So, they are cautious. But in our segment and our sector, we are seeing appetite for new stores, and demand, as can be seen in statistics for retail new deals.

Speaker #2: There is still very much demand for our assets, our profile, and our location. Yeah, yeah. Sorry, apologies.

Jacques Kriel: Two amongst-

Darren Wilder: Two amongst-

[Analyst]: Then just-

[Analyst 1]: Then just-

Riaz Kader: Yeah.

Speaker #3: I was just going to ask from my side, just while you're talking on retail, with your sort of contractual escalation still at 6.5%. How do you guys think about the sustainability, I suppose, of your positive reversions at around 5%, if inflation sort of remains below contractual rental growth?

[Analyst]: Sorry.

[Analyst 1]: Sorry.

Riaz Kader: Go for it. Apologies.

[Analyst]: I was just going to ask from my side, just while you are talking on retail, with your contractual escalations still at 6.5%, how do you guys think about the sustainability, I suppose, of your positive reversions at around 5% if inflation remains below contractual rental growth?

[Analyst 1]: I was just going to ask from my side, just while you are talking on retail, with your contractual escalations still at 6.5%, how do you guys think about the sustainability, I suppose, of your positive reversions at around 5% if inflation remains below contractual rental growth?

Speaker #2: So, it's a great question. I think the argument with the retailers, or the discussion and negotiation with the retailers, goes both ways. In a lower inflation market, it's low inflation for us, but also for the retailers.

Riaz Kader: Well, it is a great question. I think the argument with the retailers or the discussion and negotiation with the retailers goes both ways. In a lower inflation market, it is low inflation for us, but also for the retailers. If they have got low inflation, their margins are under less pressure. If their margins are under less pressure, there is more room for negotiation on that step-up escalation and the built-in escalation. We do not look at it and paint every brand with one brush. We look at individual store performance, trading densities, margins, where we can get that information, and we slow the negotiation down to understand that, and that is where we negotiate the step-up escalation. That is how we have managed to achieve the results.

Speaker #2: If they've got low inflation, their margins are under less pressure. If their margins are under less pressure, there's more room for negotiation on that step-up escalation and the bolting escalation.

Speaker #2: So we don't look at it and paint every brand with one brush. We look at individual store performance—trading densities, margins—where we can get that information.

Speaker #2: And we slow the negotiation down to understand that, and that's where we negotiate the step-up escalation. That's how we've managed to achieve the results.

Speaker #2: So at a higher escalation, the argument can go the other way, where the higher the escalation, because of Africa's inflationary market, retailers are pushing some of that inflation onto their retailers.

Riaz Kader: A higher escalation, the argument can go the other way, where the higher the escalation, because of Africa's inflationary market, retailers are pushing some of that.

Speaker #2: Again, protecting their margin. And hence, those negotiations go backwards and forwards, and there needs to be room for that step-up escalation.

Darren Wilder: inflation onto their retailers, again, protecting their margin. And hence, those negotiations go backwards and forwards, and there needs to be room for that step-up escalation.

Riaz Kader: inflation onto their retailers, again, protecting their margin. And hence, those negotiations go backwards and forwards, and there needs to be room for that step-up escalation.

Speaker #3: Okay, right. Thank you. I just have one question here on the industrial sector. Could you please provide an update on filling the industrial vacancy?

[Analyst]: Okay. Right. Thank you. You have one question here on the industrial sector. So just provide an update-

[Analyst 1]: Okay. Right. Thank you. You have one question here on the industrial sector. So just provide an update-

Speaker #2: Thank you. I see it's from Sinovuyo. So, in terms of the industrial vacancy, Darren alluded earlier on, post pre-close, we've reduced the industrial vacancy.

Jacques Kriel: Yeah

Riaz Kader: Yeah

[Analyst]: on filling the industrial vacancy.

[Analyst 1]: on filling the industrial vacancy.

Jacques Kriel: Thank you. I see it's from Sinovuyo. So in terms of the industrial vacancy, Darren alluded earlier on post pre-close, we've reduced the industrial vacancy, and we'll report that as we report our year-end numbers. So we've reduced it from the 4%. The team's done some good linking, and that will go into our forecast and budget for the next financial year. So that has come down, and the team are continuously working to bring it down further.

Riaz Kader: Thank you. I see it's from Sinovuyo. So in terms of the industrial vacancy, Darren alluded earlier on post pre-close, we've reduced the industrial vacancy, and we'll report that as we report our year-end numbers. So we've reduced it from the 4%. The team's done some good linking, and that will go into our forecast and budget for the next financial year. So that has come down, and the team are continuously working to bring it down further.

Speaker #2: And we'll report that as we report our year-end numbers. So we've reduced it from the 4%. The team's done some good letting.

Speaker #2: And that will go into our forecast and budget for the next financial year. So that has come down, and the team are continuously working to bring it down further.

Speaker #3: Okay, all right. There are a few questions on capital allocation, so I'm just going to go to that, and then on the DMTN program.

[Analyst]: All right. There are a few questions on capital allocation, so I am just going to go to that and then on the DMTN program. The first one is from Trinity. If I recall correctly, the KZN acquisitions that transferred on 10 July are leasehold properties. Could you confirm whether the 10.2% yield is net of ground lease payments?

[Analyst 1]: All right. There are a few questions on capital allocation, so I am just going to go to that and then on the DMTN program. The first one is from Trinity. If I recall correctly, the KZN acquisitions that transferred on 10 July are leasehold properties. Could you confirm whether the 10.2% yield is net of ground lease payments?

Speaker #3: The first one is from Trinity. So, if I recall correctly, the KZN acquisitions that transferred on 10 July are leasehold properties. Could you confirm whether the 10.2% yield is net of ground lease payments?

Speaker #1: It is.

Speaker #3: Okay, another question from Ridwan: Please talk to additional acquisition opportunities and market yields potentially achieved. Where are we in the process?

Jacques Kriel: It is.

[Analyst]: Okay. Another question from Udbhan. Please talk to additional acquisition opportunities and market deals potentially achieved. Where are we in the process?

[Analyst 1]: Okay. Another question from Udbhan. Please talk to additional acquisition opportunities and market deals potentially achieved. Where are we in the process?

Speaker #1: Look, we've got a very healthy pipeline of assets that we're working through. We have a range from probably 9, 9 and a half, 10, 10 and a quarter.

Jacques Kriel: Look, we have got a very healthy pipeline of assets that we are working through. We have a range from probably 9.5, 10.25. We have got quite a broad band of yields and assets that we are looking at. We will communicate clearly to the market when these deals have been concluded.

Speaker #1: We've got quite a broad band of yields and assets that we're looking at. We will communicate clearly to the market when these deals are concluded.

Speaker #3: Right. And then a question from Peter: How will proceeds of the bond issuance be used? Does Fairvest intend to be a yearly issuer, and have you defined a targeted bond-to-bank debt/funding mix?

[Analyst]: Right. Then a question from Peter. How will proceeds of the bond issuance be used? Does Fairvest intend to be a yearly issuer, and have you defined a targeted bond for bank debt/funding mix?

[Analyst 1]: Right. Then a question from Peter. How will proceeds of the bond issuance be used? Does Fairvest intend to be a yearly issuer, and have you defined a targeted bond for bank debt/funding mix?

Speaker #2: Thanks, Peter. So, initially, the proceeds will be utilized against our debt facilities. We will use that against our access or RCF facilities.

Jacques Kriel: Thanks, Peter. Initially, the proceeds will be utilized against our debt facilities, so we will use that against our access for RCF facilities. As mentioned previously, we have a strong pipeline of acquisitions that we are looking at. We have our further Onepath Investments that we are also looking to deploy that capital. Initially to debt, and then to further accretive acquisitions. We do intend to be a yearly issuer, so we expect to come back to the market. Obviously, we will be guided by our first auction, and then we will gauge demand and determine what the strategy is for us going forward. Yearly, we will need to assess our capital mix to determine what is most efficient for us, and we will determine what the most appropriate mix is for us going forward.

Speaker #2: But as mentioned previously, we've got a strong pipeline of acquisitions that we're looking at, and we've got our further on-balance sheet investments, where we're also looking to deploy that capital.

Speaker #2: So initially to debt, and then to further accretive acquisitions. We do intend to be a yearly issuer, so we expect to come back to the market.

Speaker #2: Obviously, we'll be guided by our first auction, and then we will gauge demand and determine what our strategy is for us going forward.

Speaker #2: Annually, we'll need to assess our capital mix to determine what's most efficient for us, and then we'll decide what the most appropriate mix is for us going forward.

Speaker #3: So, on that question from Trinity, with regard to the DMTN program: What margins are you achieving, and how much additional unencumbered asset value do you have available to support further issuances in the market?

[Analyst]: On that, a question from Trinity. With regard to the DMTN program, what margins are you achieving, and how much additional unencumbered asset value do you have available to support further issuances in the market?

[Analyst 1]: On that, a question from Trinity. With regard to the DMTN program, what margins are you achieving, and how much additional unencumbered asset value do you have available to support further issuances in the market?

Speaker #2: So, we haven't achieved any margin yet. Our auction is only scheduled for the 29th of September. At that point, we will know, and we'll be able to communicate to the market what we need as soon as we've concluded the auction.

Jacques Kriel: We have not achieved any margin yet. Our auction is only scheduled for 29 September. At that point, we will know, and we will be able to communicate to the market that as soon as we have concluded the auction. We do have unencumbered assets in the form of direct property within the portfolio. Then we also have our investment in Dipula that is unencumbered. At this point, the ratio will be quite low, the bonds issued versus unencumbered assets. As I have said, for future issuers, we will have the opportunity to streamline that mix. Also with further acquisitions, enable us to have more unencumbered assets to maintain a healthy ratio.

Speaker #2: We do have unencumbered assets in the form of direct property within the portfolio. And then we also have our investment in the Bula that's unencumbered.

Speaker #2: At this point, the ratio will be quite low—the bonds issued versus unencumbered assets. As I said, for future issuances, we'll have the opportunity to streamline that mix, and with further acquisitions, enable us to have more unencumbered assets to maintain a healthy ratio.

Speaker #3: We have a question here on the Pula, so I'm going to read that out and then you can unmute your mic. Following the decision not to participate in the last two Pula book builds, could you give more detail on how you're thinking about the investment's contribution to the broader group strategy, and where can we expect the investment percentage to settle in the medium term?

[Analyst]: You have a question here on Dipula, so I am going to read that out, and then, Albie, you can unmute your mic. Following the election not to participate in the last two Dipula book builds, could you give more detail on how you are thinking of the investment's contribution to the broader group strategy, and where can we expect the investment percentage to settle in the medium term?

[Analyst 1]: You have a question here on Dipula, so I am going to read that out, and then, Albie, you can unmute your mic. Following the election not to participate in the last two Dipula book builds, could you give more detail on how you are thinking of the investment's contribution to the broader group strategy, and where can we expect the investment percentage to settle in the medium term?

Speaker #1: I believe I did address that initially in our initial discussions. So we are comfortable with our investment in the Pula, and we'll just continue to prioritize and allocate capital at this point in time towards direct acquisitions within our own portfolio.

Jacques Kriel: I believe I did address that initially in our initial discussions. We are comfortable with our investment in Dipula, and we will just continue to prioritize and allocate capital, at this point in time, towards direct acquisitions within our own portfolio. Really assess any future Dipula capital raises, on their merits.

Speaker #1: And really assess any future Pula capital raises on their merits.

Speaker #3: Right. I'll be, you can unmute your mic after the question.

[Analyst]: Great. Albie, you can unmute your mic. Ask your question.

[Analyst 1]: Great. Albie, you can unmute your mic. Ask your question.

Speaker #2: Thank you. Hi, Darren, Jacques. The business.

Speaker #1: Hi, Alvin.

[Company Representative]: Thank you. Hi, Darren, Jacques. The business-

[Analyst 2]: Thank you. Hi, Darren, Jacques. The business-

Speaker #2: I'm good, thank you. Look, you're operating teams on all cylinders currently. I just want to congratulate you guys—it looks very good. My question is also related to the Pula.

Jacques Kriel: How are you, Albie?

[Company Representative]: I am good, thank you. Look, your operating teams like on all cylinders currently. I just want to congratulate you guys. It looks very good. My question is also related to Dipula. I was a bit late, signing in here. So your capital allocation on your Dipula investments, would you say currently, given that all your other operations and the fiber and everything is operating so well and performing so well, would you say your Dipula investments is a detractor or contributor to that core business? On the one side, that is one of my questions. Then I see there is one question, questionnaire asked about that you did not participate in any Dipula capital raises. I want to add to that, I saw Dipula bought quite a large retail portfolio from other property investors recently.

[Analyst 2]: I am good, thank you. Look, your operating teams like on all cylinders currently. I just want to congratulate you guys. It looks very good. My question is also related to Dipula. I was a bit late, signing in here. So your capital allocation on your Dipula investments, would you say currently, given that all your other operations and the fiber and everything is operating so well and performing so well, would you say your Dipula investments is a detractor or contributor to that core business? On the one side, that is one of my questions. Then I see there is one question, questionnaire asked about that you did not participate in any Dipula capital raises. I want to add to that, I saw Dipula bought quite a large retail portfolio from other property investors recently.

Speaker #2: I didn't—I was a bit late signing in here. So, your capital allocation on the Pula investments—would you say currently, given that all your other operations and the fiber and everything is operating so well and performing so well, would you say the Pula investments are a detractor or a contributor to that core business?

Speaker #2: On the one side, that's one of my questions. And then I see there's a questionnaire here asking about why you didn't participate in the Pula capital raises.

Speaker #2: I want to add to that. I saw that Pula bought quite a large retail portfolio from other property investors recently. Would you care to comment on that strategy, and that specific purchase as a capital allocation strategy? Are you supportive of that in the long term, given your core business is doing so well?

[Company Representative]: Would you care to comment on that strategy of him and that specific purchase as a capital allocation strategy, if that is. You are supportive of that in the long term, given your core business doing so well, against the background of your own acquisition pipeline that you say is so strong. That is all I would like to know. Thanks, Darren.

[Analyst 2]: Would you care to comment on that strategy of him and that specific purchase as a capital allocation strategy, if that is. You are supportive of that in the long term, given your core business doing so well, against the background of your own acquisition pipeline that you say is so strong. That is all I would like to know. Thanks, Darren.

Speaker #2: Against the background of your own acquisition pipeline that you say is so strong, that's all I'd like to know. Thanks, Darren.

Speaker #1: Alvin, nice to see you. Thank you for the question. So, I'm not going to comment on the Pula acquisition. I think the best person to comment on that would be Isaac, not myself.

Darren Wilder: Albie, nice to see you. Thank you for, sir. Thank you for the question. I am not going to comment on Dipula's acquisition. I think the best person to comment on that would be Isaac, not myself. Jean du Randt, Albie's second question.

Speaker #1: Jacques, do you want to take Alvin's second question?

Speaker #2: Yeah, I mean, I think our investment in the Pula has been contributing to our earnings. We have seen some strong capital growth, and there has been some growth from the earnings also, which has contributed to our growth.

Jacques Kriel: Yeah, I think our investment in Dipula has been contributing to our earnings. We've seen some strong capital growth, and there has been some growth from their earnings also, which has contributed to our growth. In terms of further capital allocation, as Darren mentioned, there's a factor of looking at the returns that we can get from further investments versus increasing our investment in Dipula. At the moment, we're very happy with the investment, and it has contributed strongly to our earnings. Future allocation, we want to control where we allocate our capital.

Speaker #2: In terms of further capital allocation, as Darren mentioned, there is the factor of looking at the returns that we can get from further investments versus increased investment in the Pula.

Speaker #2: At the moment, we're very happy with the investment, and it has contributed strongly to our earnings. For future allocation, we want to control where we allocate our capital.

Speaker #1: Alvin, does that answer your question?

Speaker #2: Partly, Darren. I mean, I could assume or I understand the cautiousness. For me, it just seems like it's two different kinds of businesses, and different kinds of managements.

Darren Wilder: Albie, does that answer your questions?

[Company Representative]: Partly, Darren. I could assume or I understand the cautiousness. For me, it just seems, it's two different kinds of businesses run by different kinds of managements and, I'm just a guy that's all about focus. Your business seems to be well-oiled, well-focused, and I'm just not sure that Dipula fits in that core strategy of yours, and that will contribute to your good quality earnings and maybe not be more of a detractor. I'm unsure. That's why I'm asking. I'll let me lead by what you say.

[Analyst 2]: Partly, Darren. I could assume or I understand the cautiousness. For me, it just seems, it's two different kinds of businesses run by different kinds of managements and, I'm just a guy that's all about focus. Your business seems to be well-oiled, well-focused, and I'm just not sure that Dipula fits in that core strategy of yours, and that will contribute to your good quality earnings and maybe not be more of a detractor. I'm unsure. That's why I'm asking. I'll let me lead by what you say.

Speaker #2: And I'm just a guy that's all about focus, and your business seems to be well-oiled, well-focused. I'm just not sure that the Pula fits in that core strategy of yours and will contribute to your good quality earnings, and maybe not be more of a detractor.

Speaker #2: I'm unsure, that's why I'm asking. And I'll let myself be guided by what you say.

Speaker #1: Thank you, Alvin. I appreciate the thoughts. But, as I said, we are comfortable with our investment in the Pula. The earnings have grown well over the last 18 months of trade.

Darren Wilder: Thank you, Albie. I appreciate the thoughts. As I said, we are comfortable with our investment in Dipula. The earnings have grown well over the last 18 months of trade. We do have very similar asset base. A very similar asset base, Albie. Very similar asset base.

Speaker #1: We do have a very similar asset base, Alvin. Very similar asset base.

Speaker #3: All right.

Speaker #2: Okay, thank you. That's all.

Speaker #3: You have two questions here, just on the retail sector. So, the first one is: can you please provide some color on trading densities?

[Analyst]: All right.

[Analyst 1]: All right.

[Company Representative]: Okay. Thank you.

[Analyst 2]: Okay. Thank you.

[Analyst]: You have two questions here just on the retail sector. The first one is, can you please provide some color on trading densities?

[Analyst 1]: You have two questions here just on the retail sector. The first one is, can you please provide some color on trading densities?

Speaker #1: So, we will give a full, updated year-end. We won't give any update on trading densities yet. On to the next question, which is: Are we seeing additional competition in the areas that you operate?

Darren Wilder: We will give a full update at year-end. We won't give any updates on trading densities yet. But we answer the next question, which is, are we seeing additional competition in the areas that you operate? And who would we regard as our closest competitor? Is that the next question we've got there?

Speaker #1: And who would we regard as our closest competitor? Is that the next question we've got there?

Speaker #3: Yeah. Yes.

Speaker #1: Yeah, look, we've found ourselves a niche in the market space. We're outside of the larger funds, where they look for properties, and we sit on the upper end of where private landlords invest.

[Analyst]: Yeah. Yes.

[Analyst 1]: Yeah. Yes.

Darren Wilder: Yeah, look, we found ourselves a niche in the market space. We are outside of the larger funds where they look for properties, and we sit on the upper end of where private landlords invest. The private landlord is probably our largest competitor. But we have a lot of headroom on our balance sheets, which enables us to effectively give a cash offer on the assets that we like, which does differentiate and allow us to act very quickly. Jean, there is a question there. What is the interest rate on the RCF facilities?

Speaker #1: So, the private landlord is probably our largest competitor, but we have a lot of headroom on our balance sheet, which enables us to effectively give a cash offer on the assets that we like. This does differentiate us and allows us to act very quickly.

Speaker #1: Jacques has a question there: What is the interest rate on the RCF facilities?

Speaker #2: So, the RCF facility interest rate is exactly the same as our term facilities. We've got, as a weighted average margin on Zeronya, about 150.

Jacques Kriel: The RCF facility interest rate is exactly the same as our term facilities. We have as a weighted average margin on JIBAR at about 150. The term that we will deposit in that is, will be a pure saving, to our interest cost as we reduce our debt.

Speaker #2: So the term that we will deposit in, that will be a pure saving to our interest cost as we reduce our debt.

Speaker #3: You have a question here from Zinclair. Your versions are only disclosed on renewal via new deals made up, close to 50% of leasing activity this period.

[Analyst]: You guys have a question here from Zintle. Your reversions are only disclosed on renewal, yet new deals made up close to 50% of leasing activity this period. Would management consider disclosing at the FY results how achieved rentals on new deals compared to budget or to expiring rentals? Including new deals in the reversion metric would give a fuller read on true rental growth.

[Analyst 1]: You guys have a question here from Zintle. Your reversions are only disclosed on renewal, yet new deals made up close to 50% of leasing activity this period. Would management consider disclosing at the FY results how achieved rentals on new deals compared to budget or to expiring rentals? Including new deals in the reversion metric would give a fuller read on true rental growth.

Speaker #3: Would management consider disclosing at the FY results how achieved rentals on new deals compared to budget or to expiring rentals? Including new deals in the reversion metric would give a fuller read on true rental growth.

Speaker #1: It is on the slide. Our new deals in the portfolio leasing are on the slide. We just popped it on the screen because it's budget.

Darren Wilder: It is on the slide. Our new deals on the portfolio leasing is on the slide. We just popped it on the screen. This is budget. We hadn't really reported in the past on new deals against budget knowing that. I'll just, 42%. That's on renewals, Jean. On new deals. I think they're referring to new deals. We'll consider it and come back to you on that.

Speaker #1: We don't really—we haven't really reported in the past on new deals against budget, knowing that. I'll just spot 22%. That's on renewals, Jacques.

Speaker #1: So, on new deals—I think they're referring to new deals—we'll consider it and come back to you on that.

Speaker #2: And Darren, if I can just add a point on that. In terms of Zinclair, in terms of new deals, I think it's important to also note that it's splitting into renewals that have not been concluded, where we're doing new deals.

Riaz Kader: If I can just, Darren, if I can just add on a point on that. In terms of new deals, I think it's important to also note that it's split into renewals that have not been concluded, where we're doing new deals, and we do have the expiry rental disclosed in our stats. From a budget perspective, vacancy, we don't budget for vacancy income. So when we do new deals, it's all upside against the budget.

Speaker #2: And we do have the expiry rental disclosed in our stats. And then, from a budget perspective, vacancy—we don't budget for vacancy income. So when we do new deals, it's all upside against the budget.

Speaker #3: All right, we don't have any more questions in the chat, so I think I can hand over to you, Darren, if you want to—if you have any closing remarks for the group.

[Analyst]: All right. We don't have any more questions in the chat. So I think I can hand over to you, Darren, if you have any closing remarks for the group.

[Analyst 1]: All right. We don't have any more questions in the chat. So I think I can hand over to you, Darren, if you have any closing remarks for the group.

Speaker #1: As we can see, we're operationally strong. And again, just thanks to everybody for supporting us over the years. We will see you at our year-end results.

Darren Wilder: As we've alluded to, you can see we're operationally strong. Again, just thanks to everybody for supporting us over the years, and we will see you at our year-end results. Again, special thanks to Abby for hosting us.

Speaker #1: And again, special thanks to everyone for hosting us.

Speaker #3: Thank you. Thanks, Darren. And Jacques, thank you, everyone. You can disconnect.

[Analyst]: Thank you. Thanks, Darren and Jacques. Thank you, everyone. You can disconnect.

[Analyst 1]: Thank you. Thanks, Darren and Jacques. Thank you, everyone. You can disconnect.

Speaker #1: Thanks, all. Bye-bye.

Darren Wilder: Thanks a lot. Bye-bye.

Riaz Kader: Cheers, everyone.

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