Financial Capital

Value Creation

Creating shareholder value

Our mission remains the creation of superior returns for our shareholders, both actual and future. As such liquidity and the creation of sustainable future income stream remains our priority.

Reflecting on 2021

Working on our Fundamentals

Since March 2020, our liquidity drive has focused on four main pillars:

Revenue protection

Revenue protection was centered around our tenant relief plans to support our tenants during this unprecedented crisis, thereby reducing risk of default, casualty and ultimately vacancy. The level of occupancy in our Malls together with collection rates attests of its success.

Vacancy

Cost containment

In parallel, we engaged with our various service providers to contain cost increases. Normalized expenses have remained within benchmark over the last three financial years, notwithstanding upward pressure on cost due to the ever increasing need to improve customer experience and responses to market changes (e.g business continuity, digitalization).

Creation of new sustainable revenue streams

Our conviction on shaping singular places remain intact. We, therefore, continued the Bagatelle Extension and built a new revenue stream of circa Rs 60m p.a. Funding for this extension was completed in December 2020.

	Floating Notes	Fixed Notes
Amount	RS 1.2 Bn	RS 0.3 Bn
Blended Rare	3.81%p.a	5.07%p.a
Rating	A+	A+
Average Tenure	11 Years	14 Years

CREATING A ROBUST PLATFORM FOR SUSTAINABLE SHAREHOLDER VALUE."

Cash yield and shareholder value

This three-pronged plan has resulted in robust fair value gains for the year (FY 21: Rs 537m / FY 20: Rs 110m) with the bulk of the fair value coming
from the extension of Bagatelle Mall (circa Rs 407m.)

Moreover, our efforts have been rewarded with strong collection rates, an increase of 10 % in operating profit (FY 21: Rs 687m v/s Rs 621m)
and a final dividend in line with pre Covid level.

	2019	2020	2021
Dividend Yield	5.4%	3.3%	3.9%
NAV Increase	7.6%	2.3%	8.0%
Return on Opening NAV	13.0%	5.6%	11.9%

Outlook

Building resilience against future shocks

Our quest for our dual goals of greater liquidity and shareholder value continues. During the next 12 months, our focus will be on:

Migrating the company to the main board of the SEM in order to have access to investment funds that primarily invest in SEM companies. Our intention is to create more liquidity in the shares of Ascencia over time.

Refinancing our debt to reduce our cost of funding and release cash for the payment of dividends. Discussions are ongoing with our debt providers and we are confident that we will be able to obtain a reduction of 45 basis point in our bank debt whilst improving its maturity profile.

Raising new debt to finance the extension of Bagatelle Mall, the redevelopment of Phoenix Mall and our various sustainability projects (e.g Biogas station, HVAC replacement, and new water treatment plant at Bagatelle Mall).

Debt Maturity Profile
	Current	Target
Next Five Years	27%	15%
Years 6-10	55%	49%
After	18%	39%
Cost of Debt	4.2%	3.5%
Rating	A	AA

RAISING FINANCE ON COMPETITIVE TERMS."