Good morning, everyone, welcome to Delta's results presentation for the year ended 28th February 2021. Thank you very much for joining us today. If you don't mind, we will run through the presentation, and only at the end will we then allow questions to be posed. To begin our slides, I will move to the first slide, which is now our slide number four, Introduction to Delta. The value of investment of our property, which we know has recently been done, is now currently pegged at ZAR 8.2 billion. We do have gross lettable area of 909,000 sq m, and our sovereign underpin is 81.3%. The SA REIT NAV per share is ZAR 5.06. The average property value is ZAR 82.7 million, and we are still very dominant in Pretoria and Durban CBD. Just to give just a quick update in terms of timeline of events since last year, 24th of August, when the CFO and I still as the interim CEO took over. That happened on the 24th of August when the previous executives all decided to step down. The 31st of August, we had a new Chairman when Mr. JB Magwaza stepped down and did not put himself up for re-election. Ms. Langeni was appointed to the board as Chairman as well. The 3rd of November 2020, our first forensic report was presented to us, the final report. The 9th of December, we had an update on the forensic investigation, which led to us withdrawing our financial year 2020 results. After a lot of discussions with the JSE, the shares were suspended for trading on the 15th of December. On the 1st of January this year, Ms. de Lange was then appointed as a permanent CFO. I got to say at this point that the search for the permanent CEO had already been underway. On the 22nd of April, we then reissued our financial 2020 year-end results. 1st of June 2021, we published our interim results, on the 30th of June, yesterday, we then published our 2021 results, which for us, this is quite a milestone because it does finally bring us up to date, so we can now finally focus on truly running this business. It's been quite a bit to have our financials restated and also trying to deal with the operations going forward. For us, 30th of June is quite a big date, and I would like to congratulate the finance team and the rest of the individuals who've been part of this for this achievement. We do not take it lightly. Just to quickly address some of the governance and process challenges that we have encountered, but most importantly, have worked very hard to make sure that we overcome. We did reconstitute board committees, and we have re-established governance and oversight roles. I've got to say, we are now very thorough in terms of disclosures, in terms of conflicts of interest, in terms of related party. We have, as a result of the second forensic report, and I think it's very important to distinguish that the first one was as a result of a whistleblower. The second one was as a result of us, as executives, requesting to undertake that so we can be certain of our internal processes. As a result of that, we have updated some of the internal procedures, processes, and most importantly, our procurement processes, our policies. Management, we're still stabilizing leadership. I know this question will be asked, I must still say. In terms of finance, we've reconstituted the whole team. Marelise is there as the permanent CFO. Of course, I speak to you today still as the interim CEO, and that process had gone a long way. In fact, the Nominations Committee and the board had found an incumbent. They had negotiated a whole package, and somehow I'm not quite sure what happened, but fair to say that I still sit today as an Interim CEO, and another process is underway. I think it's best then we all understand that let's give NomCo and the board probably another four months to really undertake another vigorous process to find an incumbent. We didn't delve too long in terms of the reasons. We just accepted when we were told. I was asked to continue in my interim position. We have bolstered key skills and competencies internally. We have restructured the way we work. There were many layers initially when we got there, a lot of hoops that we had to overcome to get a simple process being done. We've flattened the structure and there are clear heads of divisions and their support. We have brought in, as you can imagine, a lot of people into the business, and some, unfortunately, were casualties and had to depart. I've already spoken about the streamlining of operations and ultimately, the successful delivery of our CapEx commitments, our focus on area management, our performance culture will lead us to what I'm sure there will be a question on when will we start to pay deliverables. If I can just go on CapEx, there is a slide where we do talk about some of our CapEx achievements. We've done a lot. We brought in the head of facilities 1st of January, and in the last six months, we have really done a lot in terms of ensuring that we deliver. Focus our areas. We now meet weekly just to get our heads around and to make sure that what we do need to ultimately, and some of them are legacy things, that we finally close out on our books. That performance culture for us is key going forward. In terms of operational excellence and some of our strategic pillars, I've already alluded to streamlining processes for better efficiencies. Part of that as well, the CFO is very much involved in terms of what are we agreeing in terms of CapEx. I get very involved in terms of the other processes, in terms of property management and in terms of other facilities management as well. We do speak to this team daily, to the heads, to the property managers, and ultimately, we'll get it right. I think the trajectory in terms of movement is correct, and we're quite happy with it. I've alluded to having appointed suitable qualified incumbents. If you look at our structure now, which if you go to the integrated reports on our website, it is included there. We do show a slide on it, and a lot of the heads of the divisions are external people who have come in on a permanent basis. There's a lot that's still to be done. To try and have a change management, change culture takes a while. Marelise and I are committed, and we are supporting the new leadership. When I say leadership, I mean our next layer in terms of making sure that when we say we have a proper team, it actually works, and some of the learned things are not carried forward. We are very happy with our finance team, and we have restructured that division. In fact, if you look at it now, it is almost 100% new team and capacitated by CAs. We're very happy with finance, and I think it has gotten us this far in terms of release of results and of course, part of the-- I spoke about procurement, is we are vetting again our supplier database. If you remember, some of the issues, emphasis of matter that were raised by the auditors dealt with shareholding in some of our suppliers, and we've just gone back. I think there is a slide where we do state categorically that if some of our suppliers are not willing to share and to open up in terms of who the shareholders are, they will be excluded from our database. We are also very careful because there are some of our suppliers that we've worked very well with, who saved us a lot of money in terms of some of our deliverables. We're not going to be careless in terms of how we fulfill this function, but we are definitely very much committed in that. We're very conscious of Delta as a brand and the trust that we should enjoy from some of our tenants. Part of the focus is to reposition Delta as a partner of choice. Our portfolio is very much sovereign. We need to get this right. We need to have them. They're very big in our lives, and if we don't lose sleep on this. Having said that, though. We're not saying therefore the vacancies that we have, we're looking just to fill exclusively with Sovereign. What we have done, and I'm hoping we are achieving, is to exceed tenant expectations. We are rebuilding this relationship. We speak and we engage frequently. Probably for the first time, we're listening to what it is that our tenants want and what our tenants are looking for. As a result, their CapEx expectations will be achieved. We deliver consistently against our commitments. I think now there's a clear tone in terms of we do not drop the ball. Once we have promised any of our tenants, we deliver. It will take time to earn that trust. It does take time to reposition a brand, but it is something that you work on daily. Therefore, our key performance areas will be conclusion of the DPW leases. We still have, and it's no secret, a lot of the month-to-month leases on our books and some of the leases that were never signed, understandably, were because of a three-month exit clause. Our funders are not happy with this profile. This is being led from the top in terms of achieving it and in terms of ensuring that the conclusion of these leases speaks to a lot of what we need to achieve, our LTV, our short-term dated funding. We can't get this wrong. Our property people also understand this is what we live and breathe. Successful collection of arrears. We are meeting weekly, as I've already said. Filling of vacancies. I know we say filling of vacancies. We're working on it. We've got teams who are working on it. We are speaking to external people. It's easy to always say: "Why don't you speak to so and so and let them help you?" That comes with cost because part of it, that kitty, is not finite on our side. We are looking to fill vacancies. We are looking at options. We're doing what we can internally, ultimately, it is a key performance area for us. That is something that every time we speak to shareholders, we must report on, because I suppose you also would like to see movement and traction in terms of that. Extension of debt, I've already alluded to that. It's costing us quite a bit to renew and extend on a short-term basis. I'm sure the CFO, for her, this is what gives her sleepless nights. The other tied to it is the completion of our disposal of non-core assets. All our assets, we are in the business of buildings, in the building of property. When we say non-core, really, it's more regional. Some of our properties are just too far from where we are. We need to sit, and after this last round of meetings, the board has said, and that's going to be the next round of meetings, our strategy session. Where are we going? 100 buildings and now 99, with the sale of Domus and the Transport Domus, is that where we want to be? That's part of our key performance area, and we will come back at a reasonable time to report to yourselves on that. In terms of business updates, we're very proud that at least we have signed new leases of 15,000 sq m, and we have renewed 74,000.9 sq m. Rental reversions have been in line with market rentals. Post year-end, we have signed. The team has been working hard. I know I talk about renewals, et cetera, but we are taking it building at a time, and the teams work very hard. In Polokwane, we have renewed two leases, a five-year and a 9-11. Of course, a 9-11 for us is a lot to celebrate. There are other offers that we're looking at for 9-1-1, but will only come to you once we have signed and when it's finalized on the dotted line. We have 59 total number of tenants that we have retained despite tough trading conditions and of course, increased competition. I think we must speak to that. We're not naive in terms of, and we're not arrogant thinking that we can just retain DPW because of our structure and the fact that we are a sovereign REIT, therefore they should. We are working very hard in terms of that retention and understand that we do have increased competition. We will continue on this trajectory which hopefully will extend, and should extend our portfolio well. Capital recycling. Excuse me. Disposals is one of the mechanisms that we will employ to reduce our LTV. The transfer of Broker House in Pretoria, Cape Town occurred on the 31st of May 2020, and on the 6th of August 2020 respectively. The proceeds for that, ZAR 40 million, went 100% to settlement of debt or towards the settlement of debt. Post-year end, we've already said, and we did spend on it, that Domus was sold. It was transferred on the 23rd of May 2021. On the debt funding, interest-bearing borrowings decreased by 6%. During the period, the Bank of China facility was restructured for a period of six years, the loan denomination is now in rands, no longer US dollars. The applicable rate is now JIBAR, no longer LIBOR. The lowering of the prime rate supported a reduction in weighted average cost of capital. Capital allocation. We heard about CapEx, and I suppose here we give you a bit more meat and flavor in terms of what we've done. CapEx does still remain a major focal point in terms of everything else that we do with cash. Approximately ZAR 183 million has been committed for projects in this new financial year. What's been underway, Poyntons is one of our biggest building in terms of GLA. It is currently lettered with defense, correctional service, and a small bit police, who are using some of that space as storage. 76,000 sq m is very big. What we have done, we've put a lot of CapEx into Poyntons. Phase I of III of the lift upgrades, which commenced in December 2021 at a cost of approximately ZAR 22 million. The fire compliance project, which was originally started in 2019, not completed, was completed in September 2021 at a cost of about ZAR 5 million. The ground floor facade has been upgraded and completed. Actually, if you go to Poyntons, it does look very pleasing. The total spend on this project amounts now to ZAR 27 million. Veritas, we've done lifts, air con. We are looking to do flooring. As part of the air conditioning, we also did the electrical upgrade, which will lend us well for the compliance certificate and all that at ZAR 10 million. The next, Bell Street portfolio air conditionings have been upgraded at a cost of ZAR 9 million. Excuse me. Isivuno House, we've done lifts and air conditioning, ZAR 13 million. SARS Bellville, air conditioning upgrade, security fencing, ZAR 1.5 million. 88 Field Street, we've done HVAC upgrade. To just say facade, then we quote ZAR 10.8 million seems like much, but what we've done is, that's a beautiful building in Durban. We've replaced that whole silicone on the windows, and we've done waterproofing. To say facade seems like we've just maybe cleaned the windows and made it look pretty. We've actually done structural things on the building. SARS Kimberley, we've replaced totally the whole roof, air conditioning replacement. They have renewed their lease. We needed to put in, and we've done as well the facade for ZAR 4.2 million. Beaconsfield, also waterproofing, installation of turbo fans for cooling for air cons at a cost of ZAR 1.2 million. WB Centre, we've included because of Kimberley and issues with water. We have put in water tanks and we all know with electricity and installed a generator. Commissioner House in Bellville, we're currently underway, have started some internal upgrades and also the facade. Two Devonshire air conditioning. On one of the floors, we have done 100% upgrade, new flooring. It looks absolutely stunning. Servamus, we've installed chillers at a cost of ZAR 4 million. Just to continue and to finish up on capital. With our constrained cash headroom and of course, limited access to resources, financial resources, funding to date has been on working capital. Marelise has done exceptionally well on that front. Having said that, though, Poyntons, we did get, in the past, debt to do that. All these lift upgrades are done from debt from Nedbank. COVID-19, very minimal impact due to our sovereign nature. We did come in approximately, we did budget for about ZAR 11 million to support some of our retail tenants, it's all on a case-by-case basis and having very strong conversations with some of our retail tenants that if you were owing prior, please don't blame COVID. Let's see how we get this right. So far, we have paid out ZAR 6.2 million, we will continue to support our retail tenants. Though we're sovereign, at the bottom of each and every building, we do have retail, and we can't also allow to have that so vacant. We are looking after our tenants, we are speaking to them, we're talking, and we are allowing them even post this to come through if there are still challenges. Thank you very much. That brings the end to the first part of my presentation, I would like to then call the CFO, Marelise, to continue. Thank you. Thank you, Bongi. Good morning, ladies and gentlemen, thank you for joining us for this presentation this morning. I'd also like to take this opportunity just to echo Bongi's sentiment on the tremendous work that the team has done so far to get us to this point and for the leadership that we've been given by our board as well. Thank you. Going into our financial performance for 2021. Our loan-to-value have increased to 56.5% from 55.7%. That is due to the reduction in our valuations, and that's been offset slightly by our reduction in our debt, which we do through amortizations and through the process of disposals. Our average cost of debt decreased, which is a nice metric for us from 10.3% to 8.2%. Again, mainly due to the lower interest rate environment, following the decrease in the repo rate during the COVID pandemic, as well as some of our amortizations that we've done during the year. Our next metric is a rather new metric. It's called the SA REIT funds from operations. That is in terms of the REIT best practice, and it was previously known as the distributable earnings per share. We do have ZAR 223.7 million as distributable earnings, and in the previous period was ZAR 249.8 million. Although we are not distributing a dividend, due to our CapEx requirements that we have for our buildings, it gives a good indication of where we will be going in the future periods. Our interest cover ratio currently at 1.9x, and that came up from a previous period of 1.75x. We would certainly in the future look to increase our 1.9 to above the two level. That is also in line in turn, or would be in line with our covenants with our bank. When we go to our financial overview, I'd like to highlight a few items on the slide. Our rental income decreased from ZAR 1.48 billion to ZAR 1.445 billion. It's a 2.7% decrease, and it's mainly due to reversions that we've experienced, as well as increased vacancies in our portfolio. Our net property income is a rather large number in terms of 13.1% decrease. I think just to highlight specifically, the reason why it decreased is because of our increased property operating expenses. Our property operating expenses increased as a result of bad debt provisions. We made quite a bit of bad debt provision, and our policy on our bad debt provision is to provide for all legal tenants, as well as all of our tenants in the 90-day and over bucket. We do not provide for the sovereign tenants. However, if we do have a specific dispute between ourselves and a sovereign tenant, then we do make a provision if we feel that it is required. That would lead to the decrease then of 13.1% in the Net Property Income. Our net finance cost decreased quite significantly with 24.9%, from ZAR 551 million to ZAR 413 million. As I said previously, the reason for that is the decrease in the repo rate during the pandemic period. Our cost to income ratio increased from 32% to 37% on a gross basis and 18.7% to 25% on a net basis. The main reason for those increases is as a result of our vacancies. The investment in our listed security decreased due to the disposal of 14% of our shares in GRIT that we hold. We now have a holding of 4.5% in GRIT. We came down from ZAR 277 million to ZAR 157 million. I have spoken about our weighted average interest rate decreasing from 10.3%-8.2%, as well as our loan-to-value from 55.7%-56.5%. Our REIT net asset value still shows that there's quite value in our share in terms of what is net asset value on our balance sheet. That went from ZAR 562 to ZAR 506 for the period. When we come to our statement of profit and loss and other comprehensive income, to highlight a few items on this income statement. We've spoken about the revenue, spoken about our property operating expenses. I think it's just good to highlight our dividend income side. We previously have received ZAR 42.8 million from Grit, that came down to ZAR 13.8 million. I guess, when one look at where we are in terms of the environment, one can understand the decrease in the dividend there. Our loss or gain on foreign exchange movements, it's mainly due to our Bank of China facility, which has been converted from a US dollar facility into a ZAR facility. It's much less than what it was in the prior period. Our administration expenses increased quite significantly from ZAR 93 million to ZAR 116 million. The reason for that is that we have incurred a tax penalty because of the non-payment of dividends, which we now had to bring into consideration in our accounts. Our fair value adjustment, that came down significantly from ZAR 1.1 billion down to ZAR 636 million. The reason for our decrease this time around in our investment property is also again, a result from a shorter leasing profile as well as increased vacancies. We certainly do see this number increasing, or not increasing negatively, but increasing our valuations going forward, because we certainly are working quite hard on trying to get our leases signed, together with filling up our vacancies. This also goes hand in hand then with our finance cost, which, the moment we do increase our weighted averages expiry together with filling up our vacancies, we certainly will be having an increased tenor on our funding. The other item I'd just like to highlight is the taxation. In the prior year, we had ZAR 93 million as taxation that had to be paid compared to this currently ZAR 152 million. It's as a result of not paying a dividend. Just going on to our SA REIT funds from operations. As indicated, this was previously the distributable earnings calculation. It goes from our loss on our IFRS statement of ZAR 454 million, previously ZAR 935.8 million negative. Making the normal adjustments that we would have made on our distributable earnings calculation of the fair value for investment property, our gains and losses on the disposal of debt and equity instruments, as well as foreign exchange and hedging items. That take us to our distributable earnings of ZAR 223 million for this financial year, which will give you an earnings per share of ZAR 0.3133 per share. On this slide, what we have done is, it's what we've spoken about now on the funds from operations. It's just a graphical representation of how we moved from our ZAR 250 to where we are at this point in time. Our statement of financial position. It is an abridged statement. We start with our investment property. As I indicated previously, we went from ZAR 8.8 billion to ZAR 8.2 billion. That's a ZAR 517 million decrease in our investment property. Again, that goes to the shorter WALE that we have as well as the increased vacancies. We talk about investment in listed securities. That is our investment in Grit, which I have spoken to you about. Then our current assets are mainly made up of our trade debtors. When we get to our non-current liabilities, as well as our current liabilities, I'm going to group our interest-bearing borrowings together. We currently have our current liabilities exceeding our current assets. The reason for that exceeding is because our facilities being on a short tenor, and we certainly will be working on increasing that tenor to a longer period in order to make sure that we don't have a current liability situation exceeding our current assets. We do talk to our funders on a weekly basis in order to make sure that we are comfortable and the focus from our perspective is to make sure that their facilities are increased in tenor. Our other current liabilities, that is made up mainly of our trade and other payables, our creditors. Going to our valuation slide. I think what is important, although we've come down in our valuations to ZAR 8.2 billion, what we have done is we've now increased our panel of valuers. We've added JLL to our panel of valuers, and we've also added Real Insight to our panel of valuers. What we've also done is that our valuations are split pretty much equally with all valuers, and I think that gives us a good sense of, firstly, the independence of our valuers as well as the manner in which gives us comfort that it's being done on a rotational basis as well. At this point in time for this year, we've done a full portfolio valuation like we have done for 2020 as well, and we will return again to our policy of doing a third of our portfolio every year. When we get to our debt summary, we've got floating bank facilities of ZAR 1.2 billion, revolving bank facilities of ZAR 535 million, giving us total borrowings of ZAR 4.734. We include our accrued interest, which we do for month end, as well as our debt structuring fee amortization, we then get to our total borrowings of ZAR 4.755 billion, that you'll see on the face of the balance sheet. Our interest rate swaps that we have is ZAR 1.8 billion, that gets us then to a fixed portion of our facilities of 40%, compared to 45% for the prior period. It also shows that our weighted average rate is at 8.2% for our floating facilities. Our SA REIT NAV per share bridge, again, showing as to how this kind of moves in order to get us from our R5.54 to our R5.07. It does take into account our admin expenses, basically our move in our income statement and the items that we have spoken to just prior to this. I would like to hand back to Bongi. Thank you. Thank you very much, Marelise, for that. Just to conclude quickly some of the highlights and some of the things that we've mentioned. The first one is, we are still engaging with the JSE regarding, obviously, the lifting of our suspension. There's a lot of questions that they're asking, as you can imagine. They want to be certain in terms of where we are on a lot of the issues that were raised, some of the emphasis of matter issues that were raised by BDO, our auditors. One of the precursors of all this was we needed to publish by yesterday, which we did. The appointment of the permanent CEO is still ongoing, and that process has started again, and we will report the minute that NomCo and the board tells us a candidate is signed. We are still very much committed. These are some of our key pressure points, and it is the remediation on our LTV. How we will get there is a valuation uplift, which could be as a result of conclusion of leases, reduction of vacancies, and conclusion in some of our CapEx projects. This is, for us, very top of mind. This is, for us, a very key deliverable that we do need to achieve. The other is, as Marelise has spoken about, reduction of debt, and we are looking at a few mechanisms, and part of it is including disposals, non-core assets, and these Grit shares. Sorry, the Grit shares. Extension of debt terms. I think I did say, first part of my presentation, we are not sitting in a good space with our banks having to renew every three months, it just does not help us in terms of our capital structure. Those conversations we're having, and Marelise did say we meet them weekly, which we do. Nedbank is very big in our lives, conversations that we are having with them are constant, but very targeted as well in terms of what we are trying to achieve with that. We are looking for long-term funding, we've been very clear, we understand what they need us to achieve to get there, that's what we're working hard and ironing out on a weekly basis. I've alluded already to reduction of arrears. Of course, the very big one is return to distribution of payments. There's a lot that we still need to do. Before we complete, I actually realized that there's one aspect that I should have mentioned in my CFO's report, and that I omitted. Part of that is some of our legal, I wouldn't say battles. It's some just of the legal things that we had to do where we've actually sourced counsel. One of the big one is NPI PAM, which everyone, I'm sure, is aware and alive of the headlines that the previous CEO put out, and what that agreement at the time allowed for was arbitration. We are at that stage. We are defending that. Probably the other one that you'd be keen to know about is Somnipoint. You will read in the integrated report that the previous Chairman, Mr. Makwana, did come through and settle his part. We are going ahead with that. The others that we're always going in is Orthotouch. For us, Orthotouch is a done deal. It's almost concluded. Hopefully, in the next quarter or before the end of this financial year, it will not be even a subject that we speak to. The one other which the board oversees is Ethekwini Property Fund, and we are trying to recover some big monies that were never paid over to us as the landlord, where an agent was put in place, Ethekwini Property Fund, and decided to collect rent on our behalf and kept it for himself. Those are probably the big ones that the board looks at. I just thought it's proper that, as shareholders, we also at this point share with you. With that, thank you very much. That brings an end to our presentation. If you allow me, can we just take a few seconds before we have the Q&A? Thank you, everyone. Maybe five minutes, and then we come back to Q&A. Thank you. Thank you, everyone. We've now reached the Q&A section, and I would like to introduce you all to Morne Reinders, who will facilitate this Q&A section. Thank you, Morne. Thank you very much, Bongi. The first question we have is from Mr. Leon Naidoo, a Private Investor. He's saying, "Good day. Investors bought Delta shares for the income stream. Some of us are pensioners. Why can Delta not pay a reduced dividend, even if a greatly reduced dividend rather than zero? COVID has not impacted Delta as much as other REITs. Can we assume shareholders not see benefit from this? Thank you." Bongi, would you like to take that one? I do feel for you, Mr. Naidoo. The reason why, at this moment, we're not in a position to give a distribution is because of our CapEx requirements. The CEO did allude to at least about ZAR 200 million a year. For us to pay a distribution, we'll just eat into that, and at the end of the day, it will just not support. As part of it as well, there is monies that we are using to actually amortize some of our debt. Understanding that top of mind for us, it is to give a distribution. We just don't see it happening in the next financial year. In the coming financial year, 2023, we are hoping to be ready to distribute. Maybe just to address Mr. Virgil Francis' question, which is in line with that. "With the anticipated dividend payments happening in 2023 only, this means two years of tax penalties going to SARS instead of shareholders. How do you rationalize that? Marelise? Thank you, Bongi. I think maybe just to clarify, it's certainly not tax penalties. It's payable, but it is as a result of the fact that we are taking the CapEx and spending the Morne on the buildings. As Bongi alluded, it certainly is not intended to be for a long, protracted period. That we do want to return back to 2023 in terms of paying dividends. Thanks. Thank you very much, Marelise. Anton Dekker from Coronation asks, "How do you intend to balance the capital requirements from tenants and lowering of the LTV in a market where office disposals are difficult to achieve at current book values? I can take that question. Anton, thank you for the question. I think what we've done on our side is we have budgeted for our capital expenditure of approximately ZAR 200 million for this financial year, ZAR 183 of that is already committed. Yes, we do pay amortization, and ultimately our aim is that we get back to distributing a lot our dividends to our shareholders. I think, spending this capital or CapEx that we are doing at this moment will certainly get our buildings in a better state so that we can have happy tenants and certainly paying tenants so that we can make sure that going forward we can produce that. I do take your point on the lowering of the LTV. We pay approximately ZAR 200 million-ZAR 250 million a year in terms of our capital reduction for facilities, and that will certainly start helping us getting our LTV down. It is a very difficult, tough economic climate at the moment, but we'll certainly not sell buildings that is not in the best interest of shareholders and the fund. Thank you very much, Marelise. Luqman Hamid from Ninety One asks, "Could you provide some more insight into the status of the 300,000 sq m of leases currently on a month-to-month structure? Sorry. Morne, please read that again, sorry. Could you provide some insight into the status of the 300,000 sq m of leases currently on a month-to-month structure? Okay. On that, we are engaged in DPWI on a weekly basis. What we've done with the month-to-month is we've sent them our proposal and how we'd like to move forward with these ones. We're just waiting for a reply from them. We are definitely engaging, and we have definitely articulated to them that for us, we cannot continue on a month-on-month, which is something that they are now alive to. It's, I suppose, also going back to understand how did we get here to be on month-on-month from 2017. For us, it's top of mind, and we are engaging with DPW on a weekly basis. Thanks. Thank you very much, Bongi. Marelise, this next question is probably for yourself. Anton Dekker from Coronation asked, "Why did you pay a penalty to SARS? Was it due to late payment of tax? Thank you, Morne. Anton, no, it was not as a result of a late payment of tax to SARS. In the 2020 financial year, there was obviously an initial indication that there would be a dividend payable at the end of that financial year. With the withdrawal of the results, there was certainly not a dividend payable. As a result, there was an underestimation of the tax that was due to the receiver, and that was the reason for the penalty. We are talking to SARS about that, and we will keep the shareholders updated around that. Thanks. Thank you very much. A follow-up question from Naeem Samsodien at Investec, and also by Sihle Dlamini from Laurium Capital. Nazim is asking, could you provide more clarity on the month-to-month leases, which he estimates are 53% of income? His first question is there a concentration risk with regards to these? Have any of these indicated an intention to reduce space or to vacate? What is the CapEx cost to retain these leases? Is that included in the ZAR 183 million CapEx spend on slide 10, or will it be more? Definitely it has been included in the 183. They could be, at the end of the financial year, just a residual amount, but this is for the total portfolio now. On the month-on-month, the tenants are still there, and the tenants are still paying. Hence I said, we are addressing why we found ourselves month-on-month in 2017, and in 2021, we're still here. Let me say this categorically. We have not, in the back of our month-on-month, received letters or notifications to exit or to vacate. It's just a matter of finally getting over the line with DPW, and we are addressing the issues. Obviously, there are issues. We are addressing the issues, but having said that, though, we're very fortunate that part of our portfolio includes Department of Home Affairs. They're not going to just pack up and go after being there forever. Especially when the public knows, or some of other departments where to move effectively means downtime in terms of IT. That does not mean we are arrogant, hence we are engaging with them. We do need to retain them. It's just what we just need to work through, unfortunately. Thank you, Bongi. The follow-up question from Sihle is, why are their rates so high compared to other government landlords? If I can take that question. I think what we have found in our debtors book is that there were many outstanding legal cases in the past. We are working through those, and that's why we have made such a big provision this year. We are taking it case by case and working through it to make sure that we can get the best for our shareholders. We certainly are taking a zero tolerance to this, and that we really are intending to sort this out in the short term. Thanks. Thank you, Marelise. Back onto the CapEx. Nazim Samsudeen. I'm going to read a couple of questions related to CapEx. Nazim Samsudeen from Investec asks, "How much CapEx is required to get the portfolio compliant and to sign new leases? What is your ballpark estimate on this?" Liliane Barnard from Metope Investment Managers asks, "Please, can you speak to where the balance of the CapEx spend mentioned in the presentation will be spent?" She says it's a number of about ZAR 100 million. Slide 10 mentions ZAR 183 million, and the projects that you've mentioned totals ZAR 82 million. Also, can you please elaborate on the quantum of any remaining CapEx envisaged being spent in the years to come? Please describe the process in place to approve such CapEx spend. If you want. Yeah. I can. Yeah. You can, Marelise. You're quite right, Lillian. When we look at what we have listed in our presentation, it is projects that are near completion. We have spent quite a bit already to try and get our projects to near completion. Our lifts take longer simply because we first have to order them. They take time to get into the country, and then the installation of those lifts take a bit of time. We do expect our lift project that we have mentioned to be in place by the end of this calendar year. Having said that, our estimation so far is ZAR 183 million. We've also indicated in our integrated annual report how we're spending that Morne. The rest of it, in essence, is what we have budgeted for this year was ZAR 200 million. We do have a lot of occupational health and safety items that we are working on. That is certainly where the balance of that will be going, as well as TI spend that we spend on our tenants that have signed leases with us. You are quite right that we have indicated then for the year to come, approximately another ZAR 100 million. I do think that that will take us quite a long way into getting where we need to be. Could you elaborate on the process in place to approve the CapEx spend? Absolutely. We've been going through quite a proper process in terms of making sure that we use the correct suppliers. If I can just elaborate on our procurement. Our process is now every one of our suppliers are vetted, and we go through a proper process to make sure that they have the credentials to do the work that we are allocating to them, and that they can do that work that we are allocating to them. We're very careful about who we utilize in our properties and that we get value for Morne. I think Bongi also alluded to some of the savings we got so far, and that is because we are able to negotiate on bulk. If I can add and just finish off, Marelise, for you. The process is, it goes to ALCO, which is Asset Liabilities and Investment Committee, and then it gets presented at Board. Thanks. Thank you very much, Bongi. Amanda de Wet from Plexus Wealth asks, please can you elaborate further on the vacancies? Where were they at August 2020 versus February 2021 for both sovereign and non-sovereign office? In addition, what were the reversions on the renewals? What is the range of rentals that you are concluding new leases on for sovereign and non-sovereign office properties? That slide that I spoke to in terms of the leases signed, the new leases, a lot of them were private companies, if I can call it that. In other words, not sovereign. A few were state-owned entities. There is a mix in terms of what we are signing. I think if we bear in mind, we are very overweight in terms of sovereign. Whatever else comes up, we do look to other. We're not saying all our vacancies will be filled by sovereign. We are looking also at other type of tenants. I think, Bongi, if I can just add to that. Our vacancy as at the end of Feb 2020 was 21.8%, and that increased to 23.6%. Thank you very much, Marelise. Andrew Russell from African Equity asks, disposal of Protea Coin in Cape Town was at ZAR 1,228 per sq m, which is well below Cape Town's land prices. He feels that costs are too high on every metric, it needs to be a benchmark, and some of the functions need to be internalized. For argument's sake, the net operating costs, he feels is double of what it should be. Would you care to respond to that? Yes, happy to, Morne. I do go to the disposal of Protea Coin Cape Town, unfortunately, neither Bongi or I were involved in the disposal of that asset. We unfortunately can't comment on whether it's below the Cape Town land prices or not. I do take your point of ZAR 1,228 per sq m, it does seem below that. Unfortunately, we can't comment on that. I do go to the net operating cost, as indicated, our property operating expenses is quite high, that's as a result of our bad debt provision that we made. We do take your point in terms of the metrics that cost to income ratios also need to decrease, we certainly are working on that. I do think it's going to take a year or two of just really kind of getting to the bottom of where we need to so that we can kind of start stabilizing on those metrics. Fantastic. He also feels that the retail ZAR 85 a sq meter is too low, asking what the leasing benchmarks are and feeling that the escalation is too low. Would you like to comment on that? Sorry, Morne. Just repeat that if you don't mind. He's feeling that the ZAR 85 per sq m for the retail portfolio is too low in terms of rentals and that escalations are too low as well. He's asking what the leasing benchmarks are. I think so. When we talk about our retail portfolio, I think it is necessary to understand that our retail portfolio is a city center retail portfolio. It is certainly not a national or super regional type retail portfolio. It is a very different tenant that we have in retail. It might feel that the ZAR 85 sq m is too low, and we will be working on our retail tenants. At this point in time, that is factual. Whether our escalations are too low. I think from our retail tenants, we get a decent escalation. It is more on our sovereign tenants that the escalations are lower, and maybe that is what Mr. Russell is referring to in terms of the overall escalation. I think if I can come in there, Marelise, what's important to state is our retail tenants are just at the bottom of our office. It's not a whole 3,000 sq m of retail. It's not. It's just the mom-and-pop shops at the bottom, and with some of them, we're lucky to have PEP. It's not retail the way we generally refer to retail. Agreed. Last question from Andrew Russell is, and you have touched on it in the presentation, but for clarity's sake, when is the new CEO to be announced and when do you anticipate trading again? Look, I would love to trade tomorrow. We signed some documents and sent as late as yesterday to the JSE. We have been engaging with the JSE from as far back as December 2020. We're hoping tomorrow. They haven't given us an indication. They've just been asking questions. We've been fulfilling those questions. On the CEO, I have said, a process has started, and we will wait until that process is finished. Understanding, of course, that this is urgent. Thanks. Thank you very much, Bongi. Mahier Hamdulay from Absa Capital asks, "Due to the balance sheet and liquidity concerns, have you considered the possibility of de-REITing the company? If I can take that, Mahir. What we're doing is we certainly are looking at all options from our side. We have not made a decision as a board. We are looking at what is our possibilities that we should explore or options that we do need to explore. We have not made a decision on that. Thanks. Thank you. Trevor Matthews, a private investor, asks, "Please clarify the 59 tenants referred to as being retained. Are these in Polokwane?" He also asks if you could please elaborate at a high level on the status of the Nelspruit leases, considering the large capital expenditure on these assets. The 59 tenants is of our total portfolio that we have retained. Our Nelspruit portfolio is almost fully let. If I can just give a general reply is that out of 13 buildings that we have in Nelspruit, pockets of 13, but it's not more than two buildings. It's a well-run and a well-let portfolio. Of course, we are thriving. We are looking to have it 100%, and work has been done. That portfolio is being managed by Broll, and it is well run. Could you elaborate on the Nelspruit leases? Bongi, if I can maybe take that. On the Nelspruit leases, the majority of our Nelspruit leases only mature towards 2024. As Bongi indicated, about two buildings have some pockets of vacancies in them. The majority of our Nelspruit portfolio is fully let. Thanks. Thank you. Bandile Zondo from Standard Bank asks, "On the month-to-month leases, do you expect this to be finalized by the time you next report? And what is the main delay or concern from the tenant side?" Second question is: "On the forthcoming expiries, is it fair to say that CapEx requirements won't delay the renewal process?" Thirdly: "Have you had any offers given the large discount to net asset value? I'd love to have the month-to-month leases to be resolved by tomorrow or yesterday. We have sent all those leases to DPW, and we have not been shy in articulating the reasons. Is DPW felt or the users have felt, as Delta, we have reneged when those leases were signed way back, some of them in 2015, some in 2017. They were not keen to sign long-term leases again. Not sure whether we will fulfill our part of the promise. We've gone a long way to show them that we are committed, and that's all that we can do, and then just engage them. What was the last part of the question? Have you had any offers given the large discount to net asset value? Offers on some of our portfolio buildings. I assume it would be on the company. We are reviewing. Marelise and I are on a call on a daily basis. Everyone has an offer. If you are speaking on disposals. We do have offers, and it's just ultimately, someone must prove that they've got, first, the ability to conclude. We've got to be happy with what's been offered. We're not having a fire sale, but we do understand that some disposals must be done. Some of them are way below. I think maybe, Bongi, just to comment on that is, when it is way below, we certainly are not necessarily considering that. Looking at an offer for the entire company, we certainly have not had offers for the entire company. Thank you, Marelise. In line with that, Brent Geddes from Geddes Capital is asking: "What is the value of properties identified for sale? If I can maybe talk to that, Brent. You'll see in our financial statements that we do not have a non-current asset sale for sale category, and that is because we haven't identified a portfolio for sale. At this point in time, we do receive offers, and we do consider the offers coming our way. As we said, we're very careful about that, and we certainly do not want to dispose anything that does not make sense for the fund or a shareholder. Thank you. Sihle Dlamini from Regus is asking a follow-up question. Whether you're aware of government's plan to build a new precinct for most of their government departments, and how will this affect Delta going forward? He also asked whether you can elaborate on the reasons for spending so much CapEx on Poyntons when you run the risk of losing the tenant, as the tenant has gone out to tender for office accommodation in 2020. I think it's important to state, let me start with the last part of the question. It's important to state that they had gone out to tender already in 2017, and they found nothing. They've gone out to tender in 2020, and they're still nowhere. For them to find, maybe let's say that's 53,000 sq m of building, I'm not sure. Having said that, we're not going to be arrogant. We are engaging with them. They are still there, and some of them, the property, what do you call them? The people in charge of the building from the user point of view do tell us, "This is what you need to fix. This is what you need to fix." That's what we're fixing, hence the CapEx at Poyntons. If they had already made up their mind, they wouldn't be telling us what we do need to fix and get right. In terms of the precinct, I'm not aware of government having a precinct for all government departments in one. I'm not aware of that. I do know that there is talk for some of the users to be all under one roof. Whether that building that sometimes gets mentioned can accommodate all those particular users, it can't. We'll take it a day at a time. What we don't want to do is to stop engaging DPW because of maybe they're building a precinct, maybe, et cetera. No, we're still steaming ahead with Poyntons. If they do ultimately move, those are things that we will need to take into account. None of our people on the ground have reported this to us. Thanks. Thank you very much, Bongi. Luyanda Biyela is a Private Investor and asks, we read in the news that the organization was looking for private investors because of debt. This has not been mentioned in the presentation. How true is this going into the future? I don't know, Marelise. Maybe they come to you directly as the CFO, but ultimately I haven't heard, and it's not even in my mandate to look at that. I don't know, Marelise. Certainly not, Bongi. Thanks. Thank you. Thomas de Moyencourt, Independent Investor, is asking. Hello, Bongi. Thank you for taking my question. What are the key requirements Nedbank has outlined in order for them to approve longer-term and lower-cost funding? Okay. We must remember that the lower cost funding, where the cost of the funding is as low as it can be because of our low interest rate environment. What they have spoken to is, the issues that you are all asking about, where are we in terms of the month-on-month leases? Our WALE doesn't look, or the direction is not going correctly. Our LTV, has got to come in, and has got to be in line. Those are the things that they're looking for. Also bearing in mind that we are month-on-month, they need to then get a sense of how do we calculate this income? How can we peg it? That's what we're looking at. It's not insurmountable, but it does need work on our side, and that's what we are busy with. Thank you very much, Bongi. James Dutton asks two questions. Can you please give more details around some of the risks around the business? I think you've touched on this in the presentation. Specifically, an update on the Orthotouch matter and the reported NPI Asset Management claim of ZAR 400 million. You reported on this during the half year. He's asking whether this has been resolved, as there's no information in any of the year-end documents. Bongi, if I can maybe just talk to the risk. We certainly have updated our risk register in our integrated annual report, and you will see that we have made, what is very topical for us is, it's reputational risk is going concern. It is short-term leases, those kind of things. We certainly have touched on that, and I think we've given a lot of detail in our integrated annual report. We have given detail as well regarding the Orthotouch matter in our integrated annual report in the financials. Bongi, I don't know if you just maybe want to elaborate again on the D PAM asset management. Sorry. Morne, what was the question? What's the status of that? That's great. Yes. As I said before, remember there was an article saying we potentially as Delta owe ZAR 400 million. One part is for asset management, the second part was for property management or facilities management. As part of the agreements that were signed way back then, it allowed for arbitration. Since that article in the press, we have sought the use of counsel. There have been a few meetings, but it hasn't moved too far. A lot of it has been collating source documents, understanding this claim, but it's still at arbitration, which has been allowed. We haven't provided for this yet because our lawyers assure us that at this stage we should not, and there's nothing to provide for. We will keep everyone updated on this NPI PAM issue. However, it has not moved much since the headline that everyone saw. Thanks. Okay. Thanks. Thank you, Bongi. James is also asking what the total expense incurred on the litigation, as well as the various forensic matters amounted to. If I can talk to that, we have spent quite a bit of Morne on that. I can always get the exact amount that we spent. I think what is critical for us, though, is to understand that where we are at this point in time and what we're being faced with, there is going to be a bit of spend on legal expenses. I think we certainly are spending the Morne because we are not going to leave any stone unturned. I think it's critical for us to give our shareholders comfort that we are doing as much as we can in order to resolve those matters. Thank you, Marelise. The last question is from Andrew Chin. He's asking, have you looked at solar before as an alternative? With 24 months paybacks, this should be explored if you haven't done so. Yeah. Marelise, take that question. 100%. Thank you, sir. Yes, we have looked at solar. I think one thing that we maybe just need to understand about our portfolio is we have pretty much city center buildings. We have some buildings outlying. We had a look at specifically those outlying buildings. We will be considering something there. The majority of our buildings are rather large buildings that are narrow buildings, so it doesn't have a very large footplate. As such, it doesn't give us sufficient generation from solar in order for us to really get a benefit from implementing solar. Thanks. Thank you very much, Marelise. That concludes our questions for this webcast. Thank you, Morne. Thank you, Morne. Thank you, everyone.