Good morning, ladies and gentlemen, welcome to Delta Property Fund's results presentation for the financial year ended 28th February 2023. I want to hand you over to the speakers today, which is Ms. Bongi Masinga, the interim CEO, as well as Marelise de Lange, the Chief Financial Officer. Before we kick off with proceedings, please note there will be a Q&A at the end of the presentation. Please feel free to lodge your questions as we continue doing the presentation, because sometimes there's a lag for us to get them. You can do so by clicking on the questions tab under the logo on the top left-hand side of your screen. I would now like to hand you over to Ms. Masinga. Morning. Welcome, everyone, and thank you very much for attending this morning. I am accompanied by Marelise de Lange, the CFO. We present to you today the results and, you know, for us, these are results that we have been expecting. They are in line with our expectations, even though it is not the best results that we're presenting to yourselves as shareholders, as a result of our continuing vacancies and as a result of the reversions that we had to endure this year, unfortunately. The key matrix, our investment property, dropped from ZAR 7.9 million to ZAR 6.9 million as a result of valuation, right, markdowns. Marelise will go into detail in terms of that in her report. Our Funds from Operations equally down to ZAR 0.111 per share. Our sovereign underpin will continue, though we are down from 84.6%, will continue to actually go down as we proceed with our disposal program. SA REITs loan-to-value is 61.4%. SA REITs net asset value per share, also down from ZAR 4.7 to ZAR 3.6. Our average collections are down, they did come through on a lower base. Sorry. Our average collections are slightly down, but the reversions did hurt us as well in terms of the amounts that we actually collected. Our B-BBEE Level is a given now, and we hope to continue B-BBEE Level 1, and our interest cover ratio is 1.4. We do have quite a few properties that are a cash drag in our portfolio. Just as an introduction, just to paint the landscape, we present today our results on a backdrop of reorganizing and repositioning the business. The office market remains very challenging, with significant oversupply in the commercial office space. The South African economy and social challenges are mounting, including the prolonged load-shedding reality. Our strategy is being implemented with a key objective of ensuring compliance with key debt covenants, specifically our ICR and LTV. Disposals will be done on key strategic focus areas. We had presented in the past that there are some nodes that we'd like to exit out of. We are still continuing with those disposals. Engagement with funders remain a key focus and is continuous. The 2023 results are highly impacted by portfolio valuations, impairments, and persistent vacancies, as I had said initially. The South African National Commercial office vacancy remains at over 3 million squares GLA at the end of financial year 2023. The improvement in vacancy performance is biased towards your better grades, your P-grade and your Grade A office space. For us, as Delta, you know, we're feeling that competition as a large part of our portfolio is B-grade building, which is attractive to our sovereign tenants. Our business. Our operational overview. We have seen a reduction in the number of properties from 92, I mean, 292, from 99. Post-financial year end, we further disposed 14,000 square meters, a building in Durban, Greyville, Standard Bank Greyville. Majority of our DPWI leases expired, representing 123,000 square meters just after the end of the financial year. Leasing and filling vacancies will continue to be a key focus going forward. I'm sorry for my pause. Sorry. Debtors are still aggressively driving collections, a number that I've touted before. We'll get more into capital expenditure and how we are prioritizing specific projects, but a lot of our CapEx is intentionally directed to tenant retention, TI, Schedule C, as well as safety compliance. There is a focus increase in terms of the diesel recovery. Delta's portfolio vacancy increased to 32.9%, and the major contributors to that is we lost Johannesburg Water, which vacated last year, December, in CBD, Joburg, 17 Harrison Street. Harlequins Office Park had two tenants, and the one tenant, Department of Social Development, vacated, which left that building 50% vacant. It is a very good property in a very good node. We have absolutely no doubts that we will fill that vacancy very soon. LexisNexis also excellent building in Durban. The tenant has moved north. We couldn't offer an alternate building, as a lot of our buildings are in the CBD. Enka House, Department of Education, moved out as well in the Free State. These renewals for the year amounted to 194,000 sq m. Post-year-end, 87,000 of expired month-to-month leases were renewed, which were made up of 17 leases, six of which were DPWI. Out of that 87,000, 82,000 were renewed leases with DPW. One is a Department of Home Affairs in Cape Town, who have given us a five-year lease. Why we put their initial 1-year addendum is because when the lease was signed and presented to us, they then asked for additional parking, and we thought prudent that we rather change the lease rather than sign and find ourselves them taking more parking, which is not in the lease, which we know collection for that would have been a problem. Department of Home Affairs renewed in Pretoria as well for three years. Department of Correctional Services in Poyntons renewed in Pretoria for three years. NPA in Cape Town renewed for three years. SARS in Potchefstroom for one year. You will see that in our portfolio, the police, as they are supposed to relocate to Telkom Towers in Pretoria, quite a few of them, and they are trying to consolidate police into 1 building in all the regions, we are not likely to get anything more than one year. This one year renewal has been going now for the last three years. Department of Public Enterprises is moving to Hatfield, and hence they've extended for eight months, or 12 months, sorry, for one year. There, there was an additional 13,312 sq m of new leases that were concluded. The reason why we put that separately is because a lot of those were state-owned enterprises, for example, Transnet, Department of National Development, DTI, et cetera. Just recently, just two days ago, we were offered ZAR 40,000, an additional ZAR 40,000 renewal with WI. Just in terms of GLA and vacancy reconciliation, taking into account disposals, as I've said, we started in February 2002, with 99 properties, disposed of seven. We are now left with 92 properties, but of significance is the GLA that is reduced. We were sitting with 904 in terms of GLA. We're now sitting with 804,000 square meters. The vacancy in GLA at the end of the year was 282,000. There wasn't much movement, 'cause as we disposed, we then received a lot more vacancy or buildings going vacant as a result of termination of lease. In terms, just to give a better clarity and overview, in terms of operational, geographic split, we are still very dominant in Gauteng. It is a node that we intend to also dispose some properties in. KwaZulu-Natal is a very good area for us, even though their vacancies are very high. We are finding now that we are getting a lot more traction in terms of filling some of our buildings. Liberty Towers, you know, has become very popular. Embassy Building also become very popular. We realized that as we did our safety compliance certificates, we put in generators. Tenants have been very keen in relocating to those, so we are going to see quite a bit of traction. Durban, for us, is a very important node. We know that there are a lot of developments in terms of the waterfront that will be built in Durban. For us, a lot of our properties are right there along the strip or a street away from the prospective development. Free State, we're definitely disposing and getting out of, but as we are presented with leases, we do sign, and we will sell a building under a lease. Limpopo is, at the moment, though, very small in terms of GLA, it is actually a very good income generation portfolio for us. If we can keep and hold on to that one for a very long time, we will. Western Cape, we have about 4 properties, all of them 100% let. Leases have been renewed, though with SARS in Bellville, we know that they are looking for smaller premises. We are negotiating with them to see how we can better accommodate them exactly where they are, instead of relocating them. Mpumalanga is a region we may also get out of. Northern Cape, most definitely. Eastern Cape, 100% to vacate, Northwest, we've got one or two buildings, and they are on the disposal list. Geographic vacancy, I've already said Jo'burg, which is our largest, Jo'burg, Pretoria, sorry, Gauteng, Jo'burg, and Pretoria, KZN. I'm very confident about KZN in terms of filling those vacancies. In terms of CapEx update, it does remain our main focal point as we try to manage our liquidity and cash flow. ZAR 79 million was spent last year in terms of CapEx project. Not CapEx project, in terms of CapEx. Merely, it was towards TI. We prioritized TI, lease obligations, SHEQ certification, and most importantly, certification, which is mandatory for transfer in our disposal process. Our CapEx at the moment is funded out of operational cash. Major projects that were above half a million, that were undertaken last year, is Poynton's. In Poynton's, in the west building, we have 100% completed the lifts upgrade. We are now in the east building, where we've completed phase one, eight lifts. Sorry, did I say eight buildings? Sorry. Okay, lifts. The west building, sorry, the west building, we've completed the lift upgrade. We are now in the east building, where we've completed phase one, which are 8 lifts. We now started phase two, which is gonna be an additional eight lifts. Ladies and gentlemen, let's also please bear in mind that this project will be ongoing for a while. Poynton's in the west building in the east building, they do have 21 lifts that we still have to do and complete. The lift upgrade project is funded by a separate fund that has been forwarded and made available by Nedbank. We've also replaced, done a replacement in terms of the earth cable for the lifts. Delta Heights, we've spent also quite a bit of money, and all these projects are over half a million, in terms of installation of a heating system as part of their air con systems. Hallmark, we've completed the replacements of their carpets from ground floor all the way to the top floor. Parkmore, which used to lie vacant, is now 50% tenanted. There we've done, in the one building where we have put in tenants, we've put in, we've upgraded, the air cons and the fresh air as part of that, air cons. Asmal building, in Polokwane, we have done also ablutions upgrades. 88 Field Street in Durban, we had to replace a whole chiller unit, which broke down during these heavy load shedding, which in Durban we are experiencing a lot more than in any other province. The Marine Building, we have, which is receiving a lot of attention in terms of a filling of vacancies. The Marine, for us, does house, the premier, and all our buildings are just around, the Marine Building. We've done the upgrade in terms of the fourth floor and the tenth floor, where the premier sits, and there has been some civil works that will be supported by proper certification in that building. Fairweather, we've done replacements. The whole roof needed to replace the trusses and the sheeting on top. Deulsturm, we've had to put in, there was an oversight, I think, in the past. The lease actually did require a standby generator, and we only had one generator. There we had to put in an additional standby generator. SA Eagle, we replaced flooring, which that project is completed. Commission House, we completed a lift upgrade. Thank you. Our geographical split, what I've just told you in terms of the CapEx upgrade, you will see them, that a lot of effort has been put in Limpopo, 7.9%, and especially KZN. Limpopo, for us, is a cash spinner. KZN is a region that's showing a lot of growth. Probably, ladies and gentlemen, this is the most important part of the presentation, because it looks to going forward, what is going to be our strategic intent. That is asset disposal, to accelerate the rate of disposals. Disposing of assets that are cash drag, part of our vacant properties that are lying there vacant, and they are a huge cost in terms of our cash flow. Reduction of debt, to reduce the amounts that we pay towards interest. Marelise will touch on those numbers, but just last year alone, I know we paid close to ZAR half a billion in terms of interest alone in servicing debt. Improvement of our weighted average lease expiry. We're looking at a targeted focus in terms of renewal of leases, but a renewal of leases in terms of government, but also filling vacancies, and also have become a very strong target for us. We are getting traction in terms of getting them into our portfolio, and we do find, and I'm not criticizing DPWI at this point, but we do find that SOEs, their processes are quicker, their processes, you know, negotiations don't last too long, and most importantly, they allow us to generate a lease. For example, we are putting in 4,000 square meters of the Competition Commission in one of our buildings in Pretoria, Block G. Our other main focus is ICR and LTV, which must be brought in line with covenant requirements. Our vacant properties, as I've said, are costly, and our vacant properties are also impacting negatively in terms of our valuation. We are looking in terms of retention of our ICR in our accretive properties. Just to maybe say a bit about ICR. The assets that we've identified and that I've stated as having a cash drag on us, are all the assets that have an ICR of 1.3 and below to negative, and any property that has an ICR of 1.4 and above, we will not be disposing. We're hoping to keep as a part of our core portfolio, but then again, negotiations sometimes will go... We say that, which is our intent, but negotiations in terms of our disposal may guide, particularly that outcome. To continue with disposals, which is our key focus area. We've intensified the disposal program. Just to give highlights, relative to 2002, where we just sold 1 asset, in this financial year, we sold 7 assets. Going forward, we have identified 43 assets that we would like to dispose within financial year 2024. We continue to dispose those properties that are non strategic and are in regions that we find we would like to exit out of. I know the question that you will ask is, "Where are we finding these buyers?" Part of it is we are not looking for. Because of the state of our portfolio, and because we do hold a lot of B-grade buildings, some of them have laid, were acquired vacant, so you can imagine the state of those properties today. We are strategically and purposefully targeting those partners who want to do conversion, not those who think they can buy our properties to continue in terms of commercial office space rental, 'cause we would have to then give those up for a huge discount. We are very cognizant in terms of value to shareholders and in terms of release values, in terms of debt for our funders. Just as a number, properties, with a market value of ZAR 2.4, ZAR 2.04 billion, are identified for disposal in this financial year. We have one property, as I've stated previously, already transferred, and there are a few number of other properties that we are looking to dispose, which are in the almost near lodging and almost transfer state, or transfer stage. Some of them we've already announced with an aggregate book value of ZAR 245.9 million. That's just to give color in terms of what I've been saying, and you'll see that we are really focused, and we are showing these numbers 'cause we do want to be tracked. The board is very clear, they will track this, and so we do have our KPIs all lined up. Anyway, my KPIs are now all lined up. In order to achieve our targets, in terms of the disposal program, we have expanded the number of our sales channels, looking particularly as well in terms of digital sales platform. We have a formulation of a super broker network, which is highly incentivized but also allows some competition amongst each other. Internal resource capacity has been enhanced, and we are evolving more into efficient transaction review approval processes, and we do meet frequently, twice a week, just to look at disposals. Having said that, we're not also forgetting the fact that we do have vacancies that we need to attend to. The redirection of CapEx is towards also the enablement of sales. I think I did say it, achieving compliance certification such as ECOCs, to ensure that we complete the transfer of properties. I think this you'll probably spend time looking at. That just gives an update in terms of geographic split and where our disposals are likely to come from. Thank you very much. I complete my part of the presentation. Marelise? Thank you, Bongi. Good morning, ladies and gentlemen, welcome to our presentation. In terms of our financial numbers, you'll see that our rental income, including our recoveries, have decreased from ZAR 1.38 billion for the year in 2022, to ZAR 1.229 billion in the current financial year. That's 11.5% downward trajectory for our revenue, that is mainly as a result of reversions that we have experienced in our portfolio. It still goes hand in hand, as Bongi said previously, with some of our vacancies that we do experience in the property as well. Our net property income similarly decreased from ZAR 910 million for the year to ZAR 746 million for the year. Again, I think when you look at that, and you also look at our next one, which talks about our finance costs, which increased from ZAR 388 to ZAR 452. That's the main drivers for firstly, having a look at our functional operation, decreasing from ZAR 0.3691 to ZAR 0.111. It's mainly, as we said previously, it's a drive. The drivers around that is as a result of the revenue decreasing, as well as our interest cost increasing substantially. You'll also see that our finance costs, our driver similarly follows what we saw in our prime rate increase. The prime rate since January last year increased to 4.25% for the year. Our SA REIT cost to income ratio is 54.3% versus 48% in the prior year. A big driver of the increase there is slight increases that we have experienced in the operating expense side of things. The main driver is the fact that we have vacant, rather large portion of vacant properties, of 30 odd percent for the period, and that increases our cost to income ratio as well, to the same degree. SA REIT administrative cost to income ratio is something we have not done before. We're showing you it's a 7%, which you take the administration cost as a total of the revenue, and it increased from 7% to 8.9%. Main drivers there is the administration increases that we have seen in salaries, as well as in some of our other aspects, such as legal expenses and professional fees. Our investment properties decreased from ZAR 7.8 billion to ZAR 6.9 billion. The main decrease there is as a result of revaluation that we find. We have decreased already valuations in August by around about ZAR 350 million, and we've now taken it further. In totality, we got to a revaluation of ZAR 833 million for the year. And I think our main drivers around the revaluation is definitely the vacancy factors that have increased. So in some of our properties, we have increased our vacancy factor, as well as the reduction in rental that we have seen come through from the market. Our investment in listed securities. That is our investment in Grit that we found. That came down from ZAR 110 million last year to ZAR 91 million, where we are now. The main driver for that is there's firstly a decrease in the share price for Grit from ZAR 0.48 to ZAR 0.34. That was countered out ever by the exchange rate that came from 15.55 to 18.60 for a dollar. Our interest-bearing borrowings, that came down from ZAR 4.5 billion to ZAR 4.1 billion. The drivers around that is we have disposed approximately just over ZAR 210 million or ZAR 200.9 million for the year in terms of disposals, and those cash were directed directly to our investment, or to our funding. A further ZAR 147 million for the year was then spent in, from operational cash, towards amortizations. During the year, you'll find that we have decreased our amortization from approximately ZAR 18.6 million on a monthly basis, to approximately ZAR 7.1 million. Our SA REIT loan to value went up from 57% to 61.4%. Again, the driver is mainly our ECL provisions that we have, as well as our fair value adjustments, that actually had an impact on our portfolio, and as a result, had a impact on our loan to value. Our weighted average cost of debt, that is a direct result of the increase in interest rates, went from 7.4% to 8.8%. We did not increase any of the hedges that we currently have in the portfolio. We have ZAR 1.86 billion as a notional in terms of hedges that we have. As a result, we found the direct translation then of the increase in interest rates in our finance cost and the weighted average cost of our debt. You'll also see that our weighted average expiry period that we have left on our facilities is 0.5 years, and I think we'll unpack that a bit later when we get to the debt slide. Yeah, we have 0.5 of a year, so half a year in terms of what we've got left in facility period. Our average debt expiry period. Oh, sorry, our debt fixed expiry period in terms of our hedges, that's 0.8. We do have some of our fixes that actually do fall away around about August this year, and then some of them will continue for another year. Our fixed versus floating increased from 40% to 44%, That is as a result of the decrease in our underlying portfolio of debt that we have from ZAR 4.5 billion to ZAR 4.1 billion. Our SA REIT net asset value per share, that came down from ZAR 4.77 to ZAR 3.64. The main drivers, obviously, for the NAV is the valuation that we have seen in the portfolio. Some of our performance numbers. We just spoke about that. That's our SA REIT loan to value. 61.4% went up from 57%. That is something that we certainly are targeting to bring down, and especially with the disposal program that has been earmarked, that will definitely it's targeted to bring that number down, as well as bring the ICR, which is at 1.4 at the moment, back in line to 2 times in terms of our covenant ratios. Our average cost of debt, we just spoke about. That is the 8.8%, compared to 7.4% for the prior period. Our net SA REIT Funds from Operations, the number, the net number. That gives us ZAR 79.4 million, compared to ZAR 263 million of the prior year. This is now quite evident, where you can see the drop in terms of rental income, as well as the increase in interest expense that we've experienced. In our statement of profit and loss and other comprehensive income, I think we touched on it again. Shows again from here, that we see the rental income going down from ZAR 1.38 billion to ZAR 1.22 billion. Property expenses, similarly, ZAR 571 million in the previous period, include our doubtful debt allowances as well as our write-offs. In the current year, we moved that to our ECL allowance line, so that we can actually have all of those provisions on the same line. You'll see from our other income, it was ZAR 6.7 million. It was higher than our prior period of ZAR 1.2 million. Our dividend side of that came down from ZAR 9 million to ZAR 5.1 million. We did receive a dividend, post year-end. That dividend pays directly into our facilities with Investec. Again, on our foreign exchange movement, ZAR 15.7 million, that's as a result of our investment in Grit. We have spoken about the admin expenses increasing from ZAR 97 million to ZAR 109 million. I think the big driver in most of what we see in our LTV and our decreases in our portfolio, is as a result of our fair value adjustments. We have seen the ZAR 812 million. That's a makeup of both our investment property, our derivatives, as well as our investment in Grit. That takes us to a loss from operations of ZAR 226 million, compared to ZAR 321 million of the prior period. Our finance costs, as you can see, increased from ZAR 411 for the year to ZAR 457 for the current year. And interest income came down from ZAR 23 million to ZAR 5.5 million. The main driver for that interest income coming down is that our government portfolio that we run, in terms of tenants, do not pay interest on late payments. We've cleaned out our book at this point in time, and then we only see mainly interest income from other tenants in our portfolio. We also have had With the focus of collecting arrears, we've seen a lot of that come down as well. Our tax decreased from ZAR 81 million to ZAR 71 million for the year, bringing our loss for the year from ZAR 149 million in the prior year to ZAR 749 million in the current financial year. Our Funds from Operations. This is a good way to show exactly what is our cash balances that we, or our cash that we actually generate and then fund before we, you know, when we start taking out all our fair value adjustments, so that we can get to our Fund from Operations, which is normally the distributable income. We start with our loss for the year of ZAR 728 million, which was ZAR 144 million in the prior financial year. When we start stripping out our investment property fair values, you'll see that that was ZAR 833 million for the current year, and in the prior year, ZAR 428 million. That also takes then our derivatives into consideration of ZAR 35 million, as well as that of the Grit shares that we have. We then also further remove our depreciation that we have, as well as our ECL provisions on the financial guarantee. We do have a guarantee that we have provided to Grit, so we take that into consideration as well. Then for the first time in this year, we have created a pro-tax, which we did not have in the prior year, and that number is ZAR 8.6 million. That takes our loss of IFRS, our accounting specific adjustments into consideration, taking us to ZAR 880 million for the year. We start taking out our investment property, or our property, plant, and equipment, which we don't have in that period. Our foreign exchange and hedging activities taken into account, and that is on our derivatives as well as on our foreign exchange that we had in our Grit investment. That takes us down to our Funds from Operations for the current year of ZAR 79.4 million, compared to the ZAR 263. When you actually work it back the other way around as well, you'll see that the main driver for this is your reduction in revenue, as well as your increase in the interest income. This takes us to our SA REIT Funds from Operations per share, from ZAR 0.369 to ZAR 0.111. This is our graphical representation from our Funds from Operations. It will actually show that, you know, we start with ZAR 263 million for the year, ending with ZAR 79 million for the year. The main driver is definitely our reduction in our bad debt write-offs that we had, as well as, again, the reduction in the doubtful debt provision that we had from the prior year to the current year. Our rental reversion is the main component of ZAR 140 million, bringing it down. That also, you need to take into consideration the additional interest that we had, as well as the reduction in recoveries as a result of increased vacancies that we have. When we go to our statement of financial position, you will see on our statement of financial position that our investment property came down from ZAR 7.1 billion-ZAR 6 billion for the year. That is the core portfolio that we have on that side, then we indicate separately to that, the noncurrent assets held for sale at ZAR 838 million, compared to ZAR 787 million for the year. In that number already is seven properties that we have disposed during the year, therefore it slightly increased from the previous year to where we are now. Our investment, we spoke about the investment in Grit, from ZAR 110 million-ZAR 91 million, then the rest of our current assets remaining is ZAR 192 million, compared to ZAR 354 million. The main driver in that number coming down is the trade and other receivables that we have in our book. That came down quite a bit. We've managed that to come down in the current financial year. When we look at our non-current liabilities, our short-term portion of our non-current liabilities decreased, and that's the number that we would like to see increase with extending our term of our facilities. You'll see that the short-term portion, which is the current liabilities of interest-bearing borrowings, increased significantly from ZAR 3.1 to ZAR 3.2 billion. That, again, is the portion that we would like to see decrease in the future, moving back into our interest-bearing borrowings as a long-term portion. That takes us to our total assets as well as total liabilities of ZAR 7.2 billion for the year. When we go into our valuations in specific, and I think, yes, there's gonna be a lot of questions as to why did our valuations come down to the extent that they have, with ZAR 833 million for the year. The main driver is, again, it's the vacancy factors that we have experienced in the fund. Our vacancies, especially in some of our properties, have been persistent for quite some time, and as a result, our vacancy factors in those properties in particular have increased. That led to some of our properties having a larger devaluation as what we have experienced in the previous financial year. As well as some of the lower rental that we have seen come through, especially in some of the reversions that we've seen. Our independent valuer panel remain as CBRE Excellerate, Real Insight, Realworx, and DNA. We previously had 2 additional valuers, being HD as well as JLL. JLL does not take on any further valuation assignments, and therefore they will not continue on our portfolio going forward. HD and DNA have merged as one company, so we'll retain DNA on our portfolio. Our valuations do rotate on a three-year cycle with our valuations as well, so we'll also do that similarly with our independent valuers to rotate the properties that are allocated to them. Just as a closing remark, we still continue to utilize the discounted cash flow method as well as the capitalization rate method in terms of valuing our properties. Coming on to our debt funding. As we said, we've decreased our interest-bearing borrowings by 7.7% from ZAR 4.5 billion to ZAR 4.2 billion. We have repaid debt to the extent of ZAR 352.8 million for the year, and that was made up of ZAR 208.9 million that was paid from disposals of properties, ZAR 143.9 million came from operational cash. We have spoken about the reduction that we've seen in our monthly amortizations that we pay to our funders from approximately ZAR 18 million down to ZAR 7.1 million. Our Standard Bank facility still has 21 months remaining on that facility until 30 November 2024. We are currently in our negotiations with Investec to finalize on the extended facilities. Our facilities, they are split into three facilities. One of them will be extended for 18 months, and two of them will be extended for 24 months. That will mean that our interest-bearing borrowings in the next period will move into the non-current portion for Investec. Our Nedbank facilities, we're currently engaging for further extension. We currently are extended until the 21st of June. After that, we expect to have a longer period in terms of our Nedbank facilities. We're quite focused on trying to get that facility moved from our current to our non-current portion. Our margin did decrease in the current financial year from 3.5% to 3% as well. Our Bank of China facility, it's a bilateral facility, and that has been extended. Still has 46 months left on its facility until December 31, 2026, and our syndicated facility was extended until December 31, 2023. Our State Bank of India facility is a syndicated facility with Nedbank, and that still has a remaining period of 15 months left, until June 2024. As we indicated, our SA REIT LTV is 61.4% from 57%. It's due to the further devaluation that we have seen in our portfolio, and it's slightly offset by our debt reduction that we have seen of ZAR 352 million for the period. Our debt summary. We just indicate here where you can see that our debts have decreased from the various funders, from Nedbank from ZAR 2.9 billion to ZAR 2.7 billion. Our Standard Bank from ZAR 807 million to ZAR 700 million for the year. Investec from ZAR 737 million for the year to ZAR 622 million. Bank of China from ZAR 149 million to ZAR 123 million. That's indicative of how we actually had amortizations in those facilities, as well as how the disposals have been decreasing those facilities that we have. taking us to a ZAR 4.5 billion for the current year to ZAR 4.196 billion. We take our accrued interest and structuring fees into consideration, bringing us to a balance of ZAR 4.193 billion. Against that, we hold swaps of ZAR 1.86 billion as notional, and that takes us then as a percentage of fixed versus floating of 44.3% versus 40.9%. In this slide, you'll also see that our average debt went from 7.4% to 8.8%. Thank you, Bongi. To conclude, since late 2020, the fund has been continuously refining its short-term and medium-term strategy. We believe we can execute on the disposals for the next, let me say, 24 months being the extreme, but we are targeting 12 months. We want to ensure that we are within our debt covenants. We will focus on ensuring efficiencies, improving profitability, and most importantly, paying a distribution back to our shareholders. To recap our priorities: it's asset disposal, reduction of debt, improvement of our weighted average lease expiry, our ICR and LTV to be brought within covenant agreements, and retention of our ICR accretive properties. Ladies and gentlemen, that does conclude our presentation. It is now time for Q&A. Thank you very much. Thank you very much, Bongi. I've received quite a number of questions from Kevin Dodd and Terence Hill, as well as from Afrifocus Securities. I'll read them out all verbatim. Kevin and Terence both asked the same question to start off with. Kevin is saying: When do management expect to resume dividends? What year? Terence is saying: Is there a view on when distributions to shareholders may begin again, or is this not on the cards in the foreseeable future? Oh, must you respond? Do you want to respond? And hence we've given ourselves a target of 12-24 months. We're not quite articulating it like that, but for us, what's most important is what I have articulated in terms of what we need to get right. At the moment, banks have a sweep, so any cash that comes in goes directly to banks, and I suppose, if you heard some of the numbers that the CFO actually articulated, we are paying a lot, or we have been paying a lot in terms of amount. We have been paying a lot in terms of interest payment. Once we get our LTV, our debt into properly acceptable levels, then we do have excess cashflow, and that excess liquidity we are hoping to start and give back to our shareholders. I hope that answers your question. Thank you, Bongi. Terence also asks: Is residential conversions, of some buildings being looked at, and is there a potential value unlock? If you could respond to that one, please. As a fund, we don't have the expertise in-house to do residential conversions. When I speak to non-traditional buyers, we are actually looking to sell to those buyers. We're willing to entertain, I suppose, a structure where if they would like to get into some sort of SPV with us, we do conversion, we stay on straight after that, then we exit for better value. Those we will consider, but in-house, we are not looking to turn some of our portfolio into residential going forward. Thank you, Bongi. Terence is also asking: Is there a renewable strategy for electricity generation? You know, I suppose for us, the biggest challenge that we have is our buildings, they may be large in terms of GLA, but they're also very, very tall structures. To look at example, solar, you know, the floor plate at the top of our buildings is small. It really cannot then 100% supply, you know, alternative energy to the building. That is why a lot of our buildings, we've got generators. Some tenants are asking for standby generators. Some buildings, we've got more than one generator for multiple tenants, or, yeah, we've got more than one generator in a building to service varied tenants in that building. No, renewable for us in the short term, not really. We may have one or two buildings where that will work, that are a bit flat in structure. For example, CCMA in Polokwane, very flat structure. Other than that, a lot of our buildings don't lend themselves to solar. Thanks. Thank you, Bongi. Kevin Dodd is asking: On completion of the disposal of 43 properties in FY2024, how much debt will Delta have? Remaining? I think, to be honest with you, that will depend on, you know, achieving our set out values that we have for those properties. When we look at that, initially, we will probably be at, definitely at the levels that we intend to be in terms of 50% loan to value. That will give you an indication. At the same time, I mean, the absolute number, that I can't at the moment, venture into as to what that number would be, but definitely, our intention is to be at the 50% or lower level in terms of LTV at that point in time of the disposal of 43 properties. Thank you, Marelise. He's also asking: The disposal of those 43 properties, what do you expect the income from those, from operations to be once those have been disposed of? I think we have quite a cash drag in terms of our vacant properties, and it will definitely start taking some of that away. What is important for us is that, you know, when you start looking at our interest that we pay at this moment at a 8.8% average rate, disposing of that assets, and again, it will depend on what we're gonna get for those assets and at what value, and we're targeting getting it at least at valuation or higher. We will have quite a significant saving and getting down to an LTV of 50%, there will be a significant saving on the interest side of it, as well as on the cash drag on the net property income side. Again, we're not giving forecasts at the moment in terms of what those numbers are. I can tell you that it will definitely be positive for the fund and accretive in terms of getting us to the levels we will want to be. Thanks. Thank you. Zinhle Mhlongo from Afrifocus Securities asks: In terms of the disposals concluded in FY 2023, were these concluded above or below book value? Sorry. We had some of them slightly below book value. Majority of them have actually been in line with book value. I think we've done quite well in terms of where we are or what we have, from those assets that we have disposed, pretty much in line with where we are in value. Thanks. Thank you. Zinhle is also asking: Have you concluded any refinancing in FY 23? How much of debt is expiring in FY 24, and what is the strategy around refinancing or repayment of this? Thank you. Especially when you look at our slide on the debt funding, Standard Bank is still until November 2024. Investec have renewed then for 18 and 24 months after that. We have our largest funder being Nedbank, that is on short term at the moment, and that is the one that we are looking at renewing for a longer period. We have been on short term with Nedbank for quite some time. I want to categorically state that Nedbank is a very good supporter of Delta and have been supporting us for quite a long time, and have also been renewing our facility for a continuous period. We are looking forward to seeing whether we can actually extend that facility for a longer period. Thanks. Thank you very much. Terence Hill is asking: What interest rate is currently on the table with the banks for expiring debt? We remain on similar terms at the moment. On our Standard Bank and Investec, they have already been concluded. Standard Bank, we have, if you look at our financial statements that we've published, that is pretty much on the JIBAR plus, I think it's 265. On Investec, we're on Prime, and then on our Nedbank facilities at the moment, we've indicated three months JIBAR plus 3%. That is where we are with those facilities, and we expect to be on a similar level going forward. Thank you very much. He's also asking: Please confirm the total assessed tax loss available to offset future tax profits. There is no tax loss to settle future tax profits. Thank you, Marelise. maybe more of a technical questions. Terence is asking: In terms of load shedding damage, have surge arresters been put in on the main electrical incomers? It's not a large cost, but it should reduce electrical surge damage. I'll reply and say, I hope so. I don't know. We need to- Yeah. We'll come back to answer. Thank you very much. A final question from Terence is: if the sovereign underpin reduces, what is the expected rate of reduction per annum, and which tenants are being targeted as alternatives? I think- Yeah. Okay. Okay. Tenants as alternatives, we are looking, as I've stated in my presentation, state-owned entities who are coming forward. The processes are simpler. They're allowing us to draft our own lease. Definitely alternatives, we are looking at state owned entities. We are looking to reduce sovereign. I must also state that sovereign has been good to us. Even during COVID, they paid. Even currently, they are paying. We may have issues in terms of renewing leases. Once a lease has been renewed, they are paying. We'll find the landing in terms of that. You know, I think once we are also doing disposals, you know, there are a lot of moving parts there, because it depends on how negotiations are going, what do we ultimately agree on? Are we talking a portfolio sale? At the moment, some people are looking for 4 properties at a time, and then, so... I mean, I don't think we'll continue to be such a hugely weighted sovereign fund. Thanks. Thank you very much, Bongi. You're welcome. A follow-up question from Zinhle, is: What is the total reversion as a%? I would need to come back to Zinhle on that. When we just look at the revenue in itself, the reversion was, it was 11.5% in terms of revenue. On a like-for-like basis, we would need to unpack that number. I do apologize, I don't have it right off with me at the moment. Thanks. Thank you very much, Marelise. There are no further questions. I think that concludes a copy of the presentation for today, ladies and gentlemen. A copy of the presentation will be available on the website later on today, and please feel free to reach out to us if there are any further questions. Thank you very much. Thank you. Thank you. Thanks so much. Thank you, Marelise. Thank you.