ANNUAL RESULTS PRESENTATION - Growthpoint Statements/Annual... · 30.1% post the June 2019 AUD174m...

ANNUAL RESULTS PRESENTATIONFOR THE YEAR ENDED30 JUNE 2019

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AGENDAGroup Salient Features

International Investments

South African Portfolio Update

Capital Management

Financial Results

Annexures

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4

5

6

3

8

Strategy in Action1

Conclusion7

RSA

V&A Waterfront

GOZ

Globalworth

STRATEGY IN ACTION

4

STRATEGY IN ACTION

Internationalisation� 30.3% of property assets, by book value, located offshore� 23.3% of EBIT from offshore� Additional R1.3bn (AUD131m) investment in GOZ� Consolidation of GPRE into GWI and an additional R241.6m (EUR15m) invested into GWI

Optimising & streamlining RSA Portfolio� 14 individual asset sales in excess of R2.9bn with a further 7 assets of R325.4m held for sale

Introducing new revenue streams1. Trading & Development:� Trading profits of R61.5m earned � Third party development fees of R13.0m earned� Good pipeline of opportunities2. Funds Management - AUM of R10.0bn assuming all current transactions conclude� Growthpoint Investec Africa Properties - GIAP

− USD212.0m should be fully invested by the end of the calendar year− USD32.5m drawn down for the acquisition of Achimota Mall in Ghana− USD62.5m drawn down for the acquisition of Manda Hill in Zambia post FY19

� Growthpoint Healthcare Property Holdings - GHPH− R2.6bn portfolio of four hospitals and one medical chambers− Attracted R700.0m in investment from third parties− Developments and extensions to Hillcrest and Gateway hospitals

for c. R100.0m − Development of Head and Neck hospital in Pretoria due for completion

in April 2020− Significant pipeline of both acquisitions and greenfield developments

5

Property management fee of 1.5% of rent

collected = R4.7m for FY19

GHPHRm

GRT (72.9%)

Rm

NCI (27.1%)

Rm

Rent net of collection fee 210.0 153.0 57.0

Asset management fee (32.0) (23.0) (9.0)

NPI 178.0 130.0 48.0

Receipt of asset and property management fee on consolidation of GMS 36.7

Total to GRT from GHPH 166.7

GHPH

GHPH

5 assets - R2.6bn

Growthpoint (GRT)

Other Shareholders

72.9%27.1%

Asset management feeof 1.25% of GAV= R32m for FY19

Growthpoint Management Services (GMS)

100%

Net rental received of

R210m for FY19100%

Growthpoint Healthcare Property Management Company

13% total return delivered to GHPH

shareholders for FY19

GROUP SALIENT FEATURES

7

5.3% increase in distributable income from FY18 to R6.4bn

4.6% distribution growth from FY18 to 218.1 cents per share

4.9% increase in group property assets from FY18 to R139.4bn

Group LTV 36.4% vs. 35.2% at FY18, which reduces to 35.1% post the GOZ equity raise

0.7% decrease in group NAV from FY18 to 2 539 cents per share

GROUP SALIENT FEATURES

FINANCIAL RESULTS

9

1. Trading profits on the sale of Pine Industrial, 50% of Runway Park and Bakers Transport Samrand. Third party development fees from Stor-Age and Bakers Transport Cato Ridge.2. Includes R3.4m (FY18: R8.8m) interest on V&A Waterfront development funding, as well as R35m on residential sales.3. FY18 includes antecedent dividends of R33m and income from Stenham of R19m, which did not reoccur in FY19.* Average exchange rate at R10.15/AUD (FY18: R9.97/AUD) for GOZ.

CONSOLIDATED DISTRIBUTION CALCULATIONFY19

RmFY18

RmINCREASE/

(DECREASE)Gross property income 11 388 10 976 3.8%

RSA 8 312 8 221 1.1%GOZ 2 761 2 533 9.0%Healthcare 240 222 8.1%Trading & Development(1) 75 - 100.0%

Property expenses (2 635) (2 366) 11.4%RSA (2 181) (1 976) 10.4%GOZ (424) (359) 18.1%Healthcare (30) (31) (3.2%)

Net property income 8 753 8 610 1.7%Other operating expenses (467) (442) (5.7%)RSA (294) (309) (4.9%)GOZ (141) (128) 10.2%Healthcare (32) (5) 540.0%

Net property income after operating expenses 8 286 8 168 1.4%Finance costs (2 603) (2 574) 1.1%RSA (2 033) (2 027) 0.3%GOZ (570) (547) 4.2%

Other income 1 352 1 163 16.2%Investment income from V&A Waterfront(2) 678 592 14.4%Investment income from GWI & GPRE 512 386 32.6%GPRE capital raising fee - 35 (100.0%)Other finance income(3) 130 145 (10.3%)Funds management income 32 5 540.0%

Adjustment for NCI, foreign exchange profit/(loss) and normal taxation (605) (649) (6.8%)FY19 distributable income and dividend 6 430 6 108 5.3%

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DISTRIBUTABLE INCOME GROWTH BOOSTED BY STRATEGIC THRUSTS

FY19 Distributable Income GrowthRSA (0.2%)

Trading & Development 1.1%

Healthcare(1) (0.6%)

Fund Management 0.4%

V&A Waterfront 1.5%

GOZ 2.0%

GWI & GPRE 1.6%

Underwriting fee GPRE capital raise(2) (0.5%)

5.3%

1. Healthcare decreased due to third party investment and Growthpoint’s 72.9% ownership.2. Earned in FY18 but not in FY19.

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CONSOLIDATED BALANCE SHEET (EXTRACTS)

FY19Rm

FY18Rm

FY19-FY18INCREASE/

(DECREASE)

Property portfolio 117 009 112 227 4.3%

RSA(1) 78 304 78 634 (0.4%)

GOZ(2) 38 705 33 593 15.2%

Equity Investments 15 515 15 096 2.8%

Investment in V&A Waterfront (50%) 7 583 7 549 0.5%

Investment in GWI (29.8%) 7 714 5 057 52.5%

Investment in GPRE(3) - 2 422 (100.0%)

Other Investments (Ferguson Place, GIAP, Workshop 17) 218 68 220.6%

Listed investments (GOZ’s 18.2% investment in ADI) 846 801 5.6%

Unlisted investment (Edcon) 96 - 100.0%

Nominal borrowings(4) 49 466 47 385 4.4%

RSA 35 241 35 152 0.3%

GOZ(2) 14 225 12 233 16.3%

Shareholders interest (NAV) 74 908 75 273 (0.5%)1. Includes R325.4m of properties classified as held for sale (FY18: R3 180m). 2. Closing exchange rate R9.89/AUD (FY18: 10.16/AUD).3. Consolidation of GPRE into GWI.4. Excludes fair value adjustments.

INTERNATIONAL INVESTMENTSGOZ

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GOZ

AUD341.3m of acquisitions and AUD45.2m of disposals

Completed 2 significant equity raises which were oversubscribed

raising AUD309m in total86.0% of properties located on Eastern Seaboard

Reduced gearing by 380bps to 30.1% post the June 2019

AUD174m equity raise

AUD353m development pipeline

Like–for-like portfolio valuation growth of 10.0%

Free float has increased to c. AUD1.3bn

Portfolio occupancy 98.0%

Portfolio split:Office 69.0% and Industrial 31.0%

3.3% WARR

5 year WALE

76.0% of debt fixed for 5.6 years at 3.7%

Average lease incentives of 10.0% vs. 17.0% for FY18

Post FY19 investment in GOZ 62.2%

Cost of GOZ investment R9.6bn vs. R19.6bn market value

INTERNATIONAL INVESTMENTSGWI

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GWI

6 acquisitions EUR574m in Poland since June 2018 including Warsaw

Trade Tower, Rondo, Retro Business House and Silesea Star in July 2019 Simplified structure with buy-in of minority

interests in GPRE, including exchanging GRT stake into GWI shares

GWI now owns >99% of GPRE and is in the process of expropriating the minorities and delisting GPRE from the Warsaw Stock Exchange

GWI successfully completed a EUR500.5m capital raise:� EUR347.6m issue of new shares for cash� EUR152.9m exchange for GPRE shares

Investment grade credit rating from all three major ratings agencies

New remuneration structure

GWI EUR dividend of 57 cents for FY19 vs. 49 cents for FY18

60 standing buildings23 in Romania and 37 in Poland including July 2019 acquisitions

Proforma portfolio value EUR2.8bn,up from EUR2.1bn in June 2018

GLA now 1.2m² up from 0.9m² in June 2018

Commercial occupancy 95.1% at December 2018, with 5.0 years weighted average lease period

Portfolio Update

29.8% investment in GWI

Well positioned for future acquisitionsfollowing recent equity raise

EUR81m development pipelinein Romania

RBC and first logistics unit at GLT II, Timisoara completed

Globalworth Campus Tower 3 and Globalworth Square office developments in

Bucharest progressing well

Cost of GWI investment R7.1bn vs. R8.1bn market value

GPRE EUR dividend of 3.7 cents for FY19 vs. 6.8 cents for FY18

SOUTH AFRICAN PORTFOLIO UPDATE

RSA PORTFOLIO UPDATE

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Over 1 258 094m² of spacelet in FY19

Vacancies of 6.8% vs. 5.4% at FY18

-5.3% renewal growth rate vs. -2.8% at FY18

70.1% renewal success rate vs. 66.6% at FY18

36.9% LTV vs. 35.4% FY18 and interest cover healthy at 3.8x

29.0% total expense ratio (incl. group overhead) vs. 27.5% FY18

RSA SALIENT FEATURES

R2.9bn of disposals and one strategic acquisition in the period for R36.0m

Arrears still under control at R77.7m vs. R68.5m at FY18 and bad debts per income statement, R18.9m vs. R17.3m at FY18

Portfolio value stable at R78.3bn

R2.7bn of development andcapital expenditure with R1.5bnof commitments

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RETAIL

Improvement in trading density growth to 1.9% from 1.3% at FY18

Retailers focus on cost reduction putting pressure for rental reversions

Challenging economy has put constraints on consumer spend

Upgrade and repositioning capex of c. R500m

Vacancies 3.9% vs. 3.6% at FY18 with the core vacancy at 2.7% reducing to 2.2% with future lettings

Decrease in arrears to 6.9% of collectables vs. 8.8% at FY18 and R30.8m vs. R35.5m at FY18

Renewal success rate 82.7% vs. 81.8% at FY19 at the expense of renewal growth at -5.3% vs. -3.1% at FY18

In force escalations of 6.9% down slightly from FY18’s 7.0%, and 6.5% on renewal vs. 7.1% FY18Retailers are trading off smaller footprints

Community and smaller centresserving the affluent shopper, performing best

Secured Dischem and Pick ’n Pay in c. 3 600m² at the ex-cinema space at Lakeside Mall

Introduction of H&M at Walmer

Increasing administered costs placing pressure on rental levels and operating costs

Continue to implement sustainable initiatives

Edcon:R110m equity investment

Impairment of R14m11.0% reduction in space since FY18

Edcon

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OFFICE

Tenants are downsizing and nervous to commit to long term leases

Disposals of R2.2bn with no acquisitions

Vacancies 10.4% vs. 8.6% at FY18

Keeping arrears contained has come at the expense of tenancies and are slightly higher at 4.5% of collectables vs. 4.0% at FY18 and have increased from R16.9m at FY18 to R18.3m at FY19

Renewal success rate significantly improved from 54.5% at FY18 to 63.5%

Escalations of 8.1% in force on c. 73.0% of the portfolio by income vs. FY18’s 7.4% and 8.1% on renewal vs. 8.3% at FY18

Market rentals are reducing

Bryanston, Rosebank, Umhlanga Ridge, Foreshore and Southern Suburbs in CT performing well

Workshop 177 iconic locations hosting over 2 000

members and 500 companies

Sandton is our largest node at c. 26.0% of the portfolio by value, where vacancies, which are

predominantly B grade, are at 14.9%

Increased tenant installation costs

Efficient buildings preferred

Renewal growth rate deteriorated from -2.2% at FY18 to -8.6%

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INDUSTRIAL

Vacancies 6.2% vs. 4.0% at FY18 with the largest vacancy at Growthpoint Business Park in Midrand

0

Renewal growth rate improved to +0.3% vs.-3.3% at FY18

Increase in business failures and closures resulting in higher arrearsat 14.1% of collectables vs. 8.7% at FY18 and have increased from R16.1m at FY18 to R28.6m at FY19

Renewal success rate 68.0% vs. 68.4% at FY18

Escalations of 8.2% in force up marginally from FY18’s 8.1% and 8.1% on renewal vs. 8.3% at FY18

Negotiations to attract and retain tenants are challenging and protracted

Resistance to rental increases is apparent on renewals and new lets

Eskom’s ability to perform is fundamental to the sector’s success going forward

Western Cape and KZN regions performing better than Gauteng

Tenants are expecting longer beneficial occupation periods, increased tenant installation allowances,

and lower rentals

Shorter lease periods are the norm as businesses are reluctant to commit to longer contractual

obligations in uncertain economic conditions

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FY19Rm

FY18Rm

INCREASE/ (DECREASE)

Gross property revenue 8 627 8 443 2.2%Retail 3 341 3 244 3.0%Office 3 510 3 557 (1.3%)Industrial 1 461 1 420 2.9%Healthcare 240 222 8.1%Trading & Development 75 - 100%

Property expenses (2 211) (2 028) 9.0%Retail (905) (842) 7.5%Office (949) (826) 14.9%Industrial (327) (329) (0.6%)Healthcare (30) (31) (3.2%)

Net property income(1) 6 416 6 415 0.0%Adjustments (1 027) (1 096)

Acquisitions and developments (899) (715)Disposals (53) (381)Trading & Development (75) -

Adjusted “like-for-like” net property income 5 389 5 319 1.3%Retail 1 790 1 753 2.1%Office 2 351 2 369 (0.8%)Industrial 1 038 1 006 3.2%Healthcare(2) 210 191 9.9%

LIKE-FOR-LIKE ANALYSIS

1. Net property income for FY18 adjusted for the movement of cost centres to the sectors to align the FY18 numbers for the FY19 restructure in order to do a like for like comparison. 2. Increased rental due to refurbishment and upgrades.

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TRADING & DEVELOPMENT

Third Party projects to the value of c. R900m:

Runway Park, Durban – c. R270m

32 on Kloof, Cape Town – c. R100m

144 Oxford Rd, Rosebank – c. R1.2bn

Own Balance Sheet projects to the value of c. R3.0bn:

Pretoria Head & Neck Hospital, Pretoria

Bakers Transport Cato Ridge, Durban

Wadestone GZI, Germiston – c. R200m

Draper on Main, Claremont – c. R150m

Woodburn Square, Pietermaritzburg

Millroad Industrial Park, Bellville – c. R320m

29 Richefont, Umhlanga Ridge – c. R90m

Mount Edgecombe, Durban – c. R180m

Exxaro, Centurion – c. R600m

SOUTH AFRICAN PORTFOLIO UPDATE

V&A WATERFRONT

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V&A WATERFRONT

� R678m investment income from the V&A

� Including R35m profits from the sale of residential units (expected p.a. for another two years)

� Turnover rental levels lower for both hotels and retail on the back of Day Zero messaging

� Development activity also lower therefore less capitalized interest

Solid demand for retail space with renewal growth of 3.7%

Edcon continue to invest in their flagship store with their highest trading density and no rental concessions have been provided to them

Retail sales and density growth, for the first 6 months, of 4.5%

Average trading densities of R5 200/m²

Footfall stable at 26m

4 000m² Woolworths extension completion for the 2019 festive season

Retail

Strong demand for P-grade office space

Vacancies low at 1.8% vs. CBD benchmark at 11.3%

Good positive renewal growth of 5.2%

Dock Road Junction fully let to Spaces and the new flagship Apple Store

1 200 parking bays at Battery Parkade will facilitate future growth of the office sector

8 500m² head office for Deloitte progressing well rental commencement 1 October 2020

Preferred bidder for the 9 000m² Investec Bank buildingin the Canal District

Office

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V&A WATERFRONT

Stabilised residential to let portfolio with vacancies at 12% vs. 15% market average

Market remains subdued due to over supply

2018/2019 cruise season was a good year with 66 000 passengers and a 16% increase in the number of vessels

Premier Fishing have moved and this opens up a development opportunity along the quayside

The Cruise liner terminal phase 3 development will include a

food incubator offering coupled with industrial style office in 2021

Marine & Industrial

Residential

� Hotels maintain their premiums compared to Cape Town CBD hotels

� Occupancy and average room rates reverting back to 2017/2018 levels post water crisis

� Crime and violence in South Africa not supportive of tourism

Hotels

CAPITAL MANAGEMENT

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RSA CAPITAL MANAGEMENT� Total Nominal Debt R35.2bn� Weighted average term of debt at 4 years� R3.7bn of debt matured in FY19 with R3.3bn of debt maturing in FY20 repaid or refinanced in advance� Public bond issues for R2.6bn for 3 to 10 years at spreads of Jibar + 109 to 190 bps� R600m inflation linked bond issue for 10 years at an effective rate of Jibar + 180 bps� 57.1% is unsecured vs. 42.9% secured� Moody's Global Scale Rating of Baa3 and National Scale Rating of AAA.za with a stable outlook

� Investment into GOZ� AUD970m of AUD/ZAR CCIRS; equivalent to 49% of market value and 89% of cost� 4.7x interest cover for FY20� 83% of dividends for FY20 hedged via FECs at an average exchange rate of R11.15

� Investment into GWI � EUR465m investment into GWI� Funded by EUR50m of direct EUR loans, EUR86m of EUR/ZAR CCIRS and

EUR333m of EUR/USD CCIRS; equivalent to 91% of market value and 99% of cost.� EUR8m uninvested on cash deposit� 2.4x interest cover for FY20� 83% of dividends for FY20 hedged at an average exchange rate of R19.13

� Interest rate hedging� 86.5% of debt is fixed� Weighted average interest rate of 9.2% or 7.1% incl. CCIRS and foreign denominated debt

� Investment into GIAP� USD9m investment into GIAP� Funded by a mix of CCIRS and USD bond (surplus cash)� USD41m commitment to invest

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LOOK THROUGH LTV

1

IFRS LTV (100% RSA A&L, 100% GOZ A&L, 50% V&A NAV, 29.8% GWI NAV)

Total property-related assets 133 370

Total debt (net of cash) 48 584

LTV 36.4%

2

LTV (100% RSA A&L, 66% GOZ NAV, 50% V&A NAV and 29.8% GWI NAV)



LTV 31.4%

3

LTV (100% RSA A&L, 66% GOZ A&L, 50% of V&A A&L, 29.8% of GWI A&L)



LTV 37.8%

4

LTV (100% RSA A&L ,100% GOZ A&L, 100% V&A A&L, 100% GWI A&L less the V&A and GWI equity accounted investments)



LTV 34.8%

1. A&L = assets and liabilities.2. NAV= net asset value.

CONCLUSION

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SOUTH AFRICA� Very tough operating environment on the back of the depressed

macro-economic environment

� Lack of growth drivers

� Property fundamentals remain under pressure with further deterioration expected

� RSA portfolio expected to dilute growth

� We continue to look for accretive investments which will enhance the quality of the portfolio

� Advantageously positioned with a strong balance sheet

V&A WATERFRONT� Development focused on bulking up the Canal District and prioritizing the

Pierhead District

� The Granger Bay masterplan is work in progress which will be the next area of focus

� Continue to look for opportunities to enhance earnings, increase bulk and densify the precinct

PROSPECTS

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GOZ� The balance sheet is in excellent shape with AUD417m debt headroom� GOZ is well positioned for growth following accretive acquisitions and

lowered debt costs� Evidence of strong shareholder support following successful equity raises� High quality tenants and manageable near-term expiries� Office and industrial sectors continue to outperform and are the favoured sectors� Continue to seek well leased and well located commercial real estate assets and

development opportunities� FY20 Guidance – distribution per share growth of 3.5% to 23.8cps

PROSPECTS

GWI� Strong macro economic environment� Robust property market fundamentals in Romania and Poland� Multi-national tenants attracted to the region� Accretive development and acquisition opportunities� Entry of a new strategic shareholder Aroundtown at 18.9% is an endorsement of the

quality of our investment� Significant cash balances of c. EUR400m to be a drag on earnings until invested

DIVIDEND GUIDANCE� Dividend growth for FY20, if any, is expected to be nominal

THANK YOU

ANNEXURES

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ANNEXURE CONTENTS

Company highlights

Growth in tangible assets and market capitalisation

GRT forward yield vs. long bond yield & SAPY yield

Portfolio overview

Property investment activities

Offshore contribution

Expense to income ratios (IFRS)

Expense to income ratios (gross)*

RSA diversified borrowings — nominal value

RSA facilities

Loan to value and interest cover ratios

Loan exposure per financier RSA

Fixed interest rate expiry profile RSA

Debt expiry profile per financier RSA

Wealth created & distributed to stakeholders

Growth in dividend per share (cents)

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

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ANNEXURE CONTENTS

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

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Key performance indicators RSA

Portfolio overview RSA (excl. V&A)

Split of RSA property portfolio

Acquisitions & disposals RSA

Developments & capital expenditure RSA

Commitments RSA

Retail overview RSA

Office overview RSA

Industrial overview RSA

GLA & vacancy reconciliation RSA

Key performance indicators V&A Waterfront (50%)

Portfolio overview V&A Waterfront (50%)

Split of V&A Waterfront property portfolio

Non-current assets held for sale RSA Developments & commitments V&A Waterfront (50%)

Shares issued & beneficial shareholders holding >2% at FY19

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ANNEXURE CONTENTS

33

34

35

36

37

38

39

Net property income analysis V&A Waterfront (50%)

V&A Waterfront overview

GLA & vacancy reconciliation V&A Waterfront (50%)

Key performance indicators GOZ

Portfolio overview GOZ

Split of GOZ property portfolio

Distributable income analysis V&A Waterfront (50%)

40

41

42

43

44

Developments & commitments GOZ

Net property income analysis GOZ

GOZ overview

Acquisitions & disposals GOZ

GLA & vacancy reconciliation GOZ

37

COMPANY HIGHLIGHTS

� Largest South African primary listed REIT

� 25th largest company in the FTSE/JSE Top 40 Index

� Gross market capitalisation R72.1bn (at R24.28 per share)

� Liquid and tradeable with R4.9bn average value of shares traded per month

� 10th year inclusion in FTSE/JSE Responsible Index

� 3rd year inclusion in the FTSE4Good Emerging Index

� Constituent of FTSE EPRA/NAREIT Emerging Index

INVESTMENT PROPOSITION

� Sustainable quality of earnings

� 16 year track record of uninterrupted dividend growth

� Underpinned by high-quality physical property assets

� Diversified across international geographies and sectors

� Dynamic and proven management track record

� Best practice corporate governance

� Transparent reporting

� Level 3 B-BBEE contributor

ANNEXURE 01: COMPANY HIGHLIGHTS

38

0

500

1000

1500

2000

2500

3000

0

20

40

60

80

100

120

140

FY13 FY14 FY15 FY16 FY17 FY18 FY19

Rbn cents

3 000

2 500

2 000

1 500

1 000

500

0

2 569c

2 428c

Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share (cents)

ANNEXURE 02:GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION

39

4%

5%

6%

7%

8%

9%

10%

11%GRT Clean Forward Yield SA Long Bond Yield SAPY Historical Dividend Yield

9.4%

ANNEXURE 03:GRT FORWARD YIELD VS. LONG BOND YIELD & SAPY YIELD

June 2011

June 2012

June2013

June 2014

June 2015

June 2016

June 2017

June 2018

8.1%

June2019

Source: Anchor Stockbrokers

9.0%

40

FY15 FY16 FY17 FY18 FY19

84.4 89.5 95.0 101.2 105.8

44.5

44.594.3

100.8107.4 112.3

208.6

173.4183.8

195.8

Interim dividend Special dividend Final dividend

Growth

4.6%

ANNEXURE 04:GROWTH IN DIVIDEND PER SHARE (cents)

218.1

6.0% 6.5% 6.5% 4.6%

41

RETAIL OFFICE INDUSTRIAL HEALTHCARE RSA TOTAL GOZ (1) (3) V&A (1)

Number of properties 49� 172� 219� 5 445 � 57� 1�

GLA (m²) 1 381 997� 1 675 560� 2 262 328 72 121 5 392 006� 1 026 466� 225 490�

Vacancy (m²)(4) 53 232 � 174 590� 139 730� - 367 552� 13 941 � 2 740�

Vacancy (%)(4) 3.9 � 10.4� 6.2� - 6.8� 2.0 − 1.2�

Valuation (Rm) 29 845� 31 696� 13 682� 2 626 78 304� 38 705� 9 567�

Value per m² (excl. bulk) (R) 21 523� 17 661� 5 676� 35 917 13 866� AUD3 881� 40 512�

Average gross rental (per m²/month) (R)(4) 197� 159 − 55 � 273 127� AUD260(2)� 260�

Average annualised yield (%)(4) 8.3� 8.5� 9.1 − 8.7 8.5 − 6.3� 7.5�

Average in force escalations (%)(4) 6.9� 8.1� 8.2� 7.9 7.7� 3.3 − 7.5�

Weighted average lease period (years)(4) 3.1� 3.8� 3.5� 8.2 3.6 − 5.1� 5.4�

Renewal success rate (%)(4) 82.7� 63.5� 68.0� 100.0 70.1� 66.5� 79.4�

Weighted average renewal lease period (years)(4) 4.8� 3.7� 3.3� 3.9 3.8� 4.8− 6.3�

Weighted average renewal growth (%)(4) (5.3)� (8.6)� 0.3� 7.7 (5.3)� (8.6)� 4.0�

Weighted average future escalations on renewals (%)(4) 6.5� 8.1� 8.1� 8.4 7.4� 3.2� 7.8−

Total letting success rate (%)(4) 83.6� 68.2� 81.4� 100.0 77.4� 58.6� 96.0�

Arrears (Rm)(4) 30.8� 18.3� 28.6� - 77.7� 6.2� 37.4�

Provision for bad debts (Rm)(4) 8.7� 9.9� 18.2� - 36.8� -� 8.0�

Bad debts (I/S) (Rm)(4) 2.9� 4.8� 11.2� - 18.9� -� 0.2�

ANNEXURE 05:PORTFOLIO OVERVIEW

1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%.2. Based on net rental per annum.3. Measurements and ratios are based on income and not GLA (when compared to RSA).

4. Arrows indicate increase / decrease from FY18 to FY19.5. Excludes 5 Trading & Development properties.

(5)

42

ANNEXURESRETAIL

RmOFFICE

RmINDUSTRIAL

RmHEALTHCARE

Rm

TRADING & DEVELOPMENT

RmRSA TOTAL

RmGOZ(1)

RmTOTAL

RmV&A(1)

Rm

Opening balance – 1 July 2018 29 878 32 853 13 434 2 469 131 78 765 33 591 112 356 9 141

Purchase price of acquisitions 21,40 - - 36 - - 36 3 714 3 750 -

Selling price of disposals 21,40 (118) (2 200) (308) - (301) (2 927) (452) (3 379) -

Developments and capex 22,32,41 509 1 250 608 17 336 2 720 858 3 578 191

Transferred to trading & development(2) - (42) (247) - 289 - - - -

Fair value adjustment (424) (165) 159 140 - (290) 2 118 1 828 235

Foreign currency translation - - - - - - (1 124) (1 124) -

Closing balance – 30 June 2019 29 845 31 696 13 682 2 626 455 78 304 38 705 117 009 9 567

Long-term property assets 29 681 31 591 13 626 2 626 455 77 979 38 705 116 684 9 567

Classified as held for sale 24 164 105 56 - - 325 - 325 -

Commitments 23,32,41 250 525 167 - 577 1 519 960 2 479 118

ANNEXURE 06:PROPERTY INVESTMENT ACTIVITIES

1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%.2. Trading & Development properties previously included in the RSA sectors. Pine Industrial, Bakers Transport Samrand and Runway Park transferred from the industrial sector and Pretoria Head & Neck Hospital transferred

from the office sector.

43

30.3% Offshore

76 906 78 634 78 304

8 705 9 141 9 567

21 181 22 003 25 528

4 2006 193

12 788226

4

FY17 FY18 FY19

5 889 6 127 6 122

498592 628

1 4101 340 1 449

72 103

59819

Book Value of Property Assets EBIT

ANNEXURE 07: OFFSHORE CONTRIBUTION

R121 346m

18.1%

7.5%

64.8%

R111 218m

19.0%

7.8%

69.2%

3.8%

R126 187m

20.2%

7.6%

62.1%

10.1%

R8 131m

16.5%

6.7%

75.3%

R7 869m

17.9%

6.3%

74.9%

1.3%

R8 797m

16.5%

7.1%

69.6%

9.5%0.2% 6.8%

1. Includes 100% of RSA, 50% of the V&A Waterfront, 66.0% of GOZ and 29.8% of GWI.

23.3% Offshore

4.0%0.2%

FY17 FY18 FY19

0.9%

RSA V&A Waterfront GOZ GWI Stenham

44

FY17 FY18 FY19

28.1% 28.9% 28.5%

3.3% 3.6% 3.2%

FY17 FY18 FY19

23.5%23.8%

25.6%

3.6% 3.7%3.4%

FY17 FY18 FY19

13.0% 14.2% 15.4%

4.8%5.1%

5.1%

SOUTH AFRICA GOZV&A WATERFRONT

ANNEXURE 08:EXPENSE TO INCOME RATIOS (IFRS)

27.5%27.1% 29.0% 32.5%31.4% 31.7% 19.3%17.8% 20.5%

Operating Expense Ratio Property Expense Ratio Operating Expense Ratio Property Expense Ratio Operating Expense Ratio Property Expense Ratio

45

FY17 FY18 FY19

35.0% 35.1%37.8%

3.0% 3.3%3.4%

FY17 FY18 FY19

13.9% 15.1% 16.3%

4.8% 5.0% 5.1%

SOUTH AFRICA GOZ

FY17 FY18 FY19

35.5% 35.1% 34.5%

3.0% 3.3% 2.9%

V&A WATERFRONT

ANNEXURE 09: EXPENSE TO INCOME RATIOS (GROSS)*

* This ratio is presented where expense recoveries have been reclassified as revenue as per SA Reit Association Best Practice guidance (issued in January 2016, first edition).

38.4%38.0% 41.2% 38.4%38.5% 37.4% 20.1%18.7% 21.4%

Operating Expense Ratio Property Expense Ratio Operating Expense Ratio Property Expense Ratio Operating Expense Ratio Property Expense Ratio

46

FY17 FY18 FY19

15 276 15 44712 582

1 540 6032 552

5 248 5 0363 476

6 824 8 23310 650

4005 833 5 980

ANNEXURE 10: RSA DIVERSIFIED BORROWINGS — NOMINAL VALUE

Debt capital market 47.2%

Traditional bank debt

52.8%

Unsecured57.1%

Secured42.9%



75.3%

Unsecured42.6%

Secured57.4%

R35 152mR29 288m R35 240m

Secured bank debt Secured institutional financier Unsecured bank debt and institutional financier Corporate bonds Commercial paper Eurobonds



60.0%

Unsecured54.3%

Secured45.7%

47

ANNEXURE 11: RSA FACILITIES

RSA facilities FY19 FY18Unutilised committed facilities (Rbn) 5.5 5.8

Weighted average term of liabilities (years) 4.0 3.7

Weighted average term of fixed interest rate profile (Incl. AUD & EUR CCIRS and IRS) (years) 3.6 4.3

Weighted average interest rate (%) 9.2 9.1

Weighted average interest rate (Incl. AUD & EUR CCIRS and EUR debt) (%) 7.1 6.9

% debt at fixed interest rate 86.5 81.5

Unencumbered assets (Incl. equity accounted and listed investments) (Rbn) 51.5 51.2

Unsecured debt (Rbn) 20.1 19.1

48

33.4%35.4% 36.9%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

50%

FY17 FY18 FY19

35.0% 35.2% 36.4%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

50%

FY17 FY18 FY19

SOUTH AFRICA GROUP

39.4%36.2% 35.4%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

50%

FY17 FY18 FY19

GOZ(2)

ANNEXURE 12: LOAN TO VALUE AND INTEREST COVER RATIOS

3.6x3.4x 3.8x3.9x 3.7x3.5x3.9x 3.8x3.8x

1. Nominal value of interest-bearing borrowings (net of cash), divided by the fair value of property assets, including investment property held for sale. For RSA and Group equity-accounted and listed investments were included in the fair value of property assets.

2. GOZ disclosed gearing is calculated differently and is 34.3%. Calculated as the nominal value of debt (net of cash), divided by total assets.

LTV (1) Interest cover ratio (incl V&A) LTV (1) Interest cover ratio (incl V&A) LTV (1) Interest cover ratio (incl V&A)

49

ANNEXURE 13:LOAN EXPOSURE PER FINANCIER RSA

15%

30%

17%9%

4%

3%

1%

Nedbank

Standard Bank

Old Mutual

LibFin

Absa

Investec JSE (Corporate Bonds)

Euronext (Eurobonds)

13%RMB

6%

Addendum

50

0%

5%

10%

15%

20%

25%

30%

FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29

ANNEXURE 14: DEBT EXPIRY PROFILE PER FINANCIER RSA

9% 9% 15% 27% 15% 10% 10%

Absa Investec JSE (Corporate Bonds) Euronext (Eurobonds) LibFin Nedbank Old Mutual RMB Standard Bank Addendum

0% 2% 3%

51

0%

5%

10%

15%

20%

25%

Floating FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29

ANNEXURE 15: FIXED INTEREST RATE EXPIRY PROFILE RSA

12% 15% 17% 25% 8% 1% 3% 2%2% 13% 2%

52

0

1 500

3 000

4 500

6 000

7 500

9 000

10 500

FY17 FY18 FY19

669 623 644

5 548 6 108 6 430

471 455

720 2 922 2 597

2 627

1 016 1 1761 042164

ANNEXURE 16: WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS(1)

R10 959mR10 790m R11 463mRm

1. Wealth created based on a look-through principle and therefore includes RSA, GOZ and V&A Waterfront.

23.7%

4.2%

55.7%

5.7%

10.7%9.1%

22.9%

6.3%

56.1%

5.6%

Employees Shareholders Minority interest holders Providers of debt Governments – direct taxes Reinvested in the group

27.1%

4.4%

51.4%

6.2%

9.4%1.5%

53

SHARES

Opening balance 1 July 2018 2 970 981 288

Dividend reinvestment (September 2018) -

Dividend reinvestment (March 2019) -

Closing balance 30 June 2019 2 970 981 288

Treasury shares held for staff share scheme (20 393 600)

Shares in issue (net of treasury shares) 2 950 587 688

% HOLDING SHARES HELDGovernment Employees Pension Fund 13.8 411 095 877The Vanguard Group 4.4 131 676 424Prudential Portfolio Managers 4.1 122 781 268Momentum Asset Management 4.0 118 402 318Sanlam Investment Management 3.9 116 385 657Sesfikile Capital 3.9 116 225 096Stanlib Asset Management Ltd 3.8 112 601 782Old Mutual Investment Group 3.6 108 431 638Blackrock Institutional Trust Company 3.2 94 592 943Meago Asset Managers 2.8 83 951 582State Street Global Advisors 2.8 83 175 653Investec Asset Management 2.5 75 466 136Total shareholders holding >2% 52.8 1 574 786 374Other 47.2 1 396 194 914Total 100.0 2 970 981 288

Foreign shareholding: 31% of institutional ownership and 26% of total shares outstanding

ANNEXURE 17: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY19

54

ANNEXURE 18:KEY PERFORMANCE INDICATORS RSA

FY19 FY18

Vacancies (%) 6.8 5.4

Total arrears (Rm) 77.7 68.5

Provision for bad debts (B/S) (Rm) 36.8 27.4

Bad debts (I/S) (Rm) 18.9 17.3

Average in force escalations (%) 7.7 7.4

Renewal success rate (%) 70.1 66.6

Total letting success rate (%) 77.4 78.7

Weighted average renewal growth (%) (5.3) (2.8)

Weighted average future escalations on renewals (%) 7.4 7.8

Number of employees 601 610

Net property income per employee (R) 10 657 541 10 550 820

55

FY17 FY18 FY19

17.2%

45.5%

37.3%

17.7%

39.8%

38.0%

17.0%

45.6%

37.4%

3.3%

1.2%

FY17 FY18 FY19

3.4%16.4%

45.2%

38.4%

17.5%

40.4%

38.1%

17.1%

44.9%

38.0%

0.9%

NET PROPERTY INCOME(1) PROPERTY PORTFOLIO VALUE

FY17 FY18 FY19

49.5%

38.6%

48.7%

38.2%

10.9%

49.6%

39.4%

11.0%

1.1%1.1%

NUMBER OF PROPERTIES

ANNEXURE 19: PORTFOLIO OVERVIEW RSA (EXCL. V&A)

R6 178m R6 436m R6 416m 471 454 450 R76 906m R78 634m R78 304m

11.9%

Retail Office Industrial Healthcare Trading & Development

56

41%

38%

17%

3%1%

52%

25%

10%

8%4%

2%

31%

25%

42%

1% 1%

56%22%

11%

6%3%

1% 1%

VALUE VALUEGLA GLA

ANNEXURE 20: SPLIT OF RSA PROPERTY PORTFOLIO

Greater JHB Western Cape Kwazulu-Natal

Pretoria Eastern Cape North West Other

Retail Office Industrial

Healthcare Trading & Development

57

ACQUISITIONS SECTOR DATEPURCHASE PRICE

Rm YIELD

Blackheath, Bellville, Cape Town Industrial June 2019 36.1 Vacant land

ANNEXURE 21: ACQUISITIONS & DISPOSALS RSA

DISPOSALS SECTOR DATE

SELLING PRICE

Rm

PROFIT/(LOSS)ON COST

Rm

PROFIT/(LOSS)ON BOOK VALUE

RmYIELD

%Norkem Mall, Norkem Park, Kempton Park Retail December 2018 109.5 71.9 4.9 10.6Longbeach Mall, Noordhoek, Cape Town(1) Retail October 2018 8.5 - - -100 Grayston Drive, Sandton Office August 2018 2 200.0 938.3 13.0 10.9Rivonia Crossing 2, Sunninghill, Sandton Industrial August 2018 188.0 (17.3) - 8.9Highland, Meadowdale, Germiston Industrial August 2018 33.0 15.5 - 7.63 Spartan Crescent, Eastgate, Sandton Industrial August 2018 25.0 (5.7) (0.6) 9.7Laser Commercia Erf 65, Clayville, Midrand Industrial July 2018 19.4 13.9 (0.3) 8.7Isando Industrial Park, Kempton Park Industrial September 2018 16.5 8.7 (0.4) 9.7Aeroton 7 of 17, Aeroton, Johannesburg Industrial October 2018 11.8 4.8 (0.1) 9.6Laser Commercia Erf 2 and 3, Clayville, Midrand Industrial July 2018 9.2 2.3 (0.1) 8.7Dekema, Wadeille, Germiston Industrial February 2019 5.0 2.1 0.1 10.4Runway Park, Mobeni, Durban (50%) Trading & Development September 2018 138.8 27.9 9.9 9.5Samrand Erf 5437/1, Midrand Trading & Development June 2019 115.3 18.0 18.0 12.7Pine Industrial Park, New Germany Trading & Development July 2018 46.9 10.8 11.5 10.4

Total 2 926.9 1 091.2 55.9

1. Sale relates to vacant land adjacent to Longbeach Mall.

58

DEVELOPMENTS & CAPITAL EXPENDITURE(1) SECTORESTIMATED

COMPLETION DATEFY19

RmWalmer Park Shopping Centre, Walmer, Port Elizabeth Retail June 2019 120.1Lakeside Mall, Benoni, Johannesburg Retail April 2019 44.3Festival Mall, Kempton Park, Johannesburg Retail April 2019 41.5Northgate Mall, North Riding, Randburg Retail July 2019 36.2La Lucia Mall, La Lucia, Durban Retail November 2019 32.4Other, below R30m Retail 234.5

Total Retail 509.0

144 Oxford Road, Rosebank Office February 2020 406.1Lakeside 1 & 2, Centurion, Pretoria Office May 2019 321.7Draper on Main, Claremont, Cape Town Office August 2019 77.629 Richefont, Umhlanga Ridge, Durban Office August 2019 42.932 On Kloof, Gardens, Cape Town Office July 2019 42.7Sandton Summit, Sandton Office June 2020 42.2Other, below R20m Office 316.8

Total Office 1 250.0

ANNEXURE 22: DEVELOPMENTS & CAPITAL EXPENDITURE RSA

1. The average yield for developments is 8.0% - 9.0% on a fully let basis.

59

DEVELOPMENTS & CAPITAL EXPENDITURE(1) SECTORESTIMATED

COMPLETION DATEFY19

RmWadestone Industrial Park, Wadeville, Germiston Industrial August 2019 122.9Millroad Industrial Park, Bellville, Cape Town Industrial October 2018 98.2Mt Edgecombe Industrial Park, Umhlanga, Durban Industrial September 2019 76.2Sterling Industrial, Midrand Industrial October 2019 61.5Montague Business Park (25%), Montague Gardens, Cape Town Industrial May 2019 52.0Midrand Central Business Park 519, Midrand Industrial November 2018 31.4Other, below R30m Industrial 165.8Total Industrial 608.0Hillcrest Private Hospital, Hillcrest, Durban Healthcare October 2019 14.1N1 Hospital, Goodwood, Cape Town Healthcare June 2019 2.2N1 Medical Chambers, Goodwood, Cape Town Healthcare June 2019 0.7Total Healthcare 17.0Pretoria Head & Neck Private Hospital, Menlyn, Pretoria Trading & Development April 2020 124.3Bakers Transport, Cato Ridge, Durban Trading & Development November 2019 101.7Woodburn Square, Pietermaritzburg Trading & Development November 2019 57.3Runway Park, Mobeni, Durban Trading & Development July 2018 21.1Samrand development, Midrand Trading & Development Vacant land 31.6Total Trading & Development 336.0

TOTAL 2 720.0Development Expenditure 2 019.8Capital Expenditure 700.2

ANNEXURE 22: DEVELOPMENTS & CAPITAL EXPENDITURE RSA CONTINUED


60

COMMITMENTS SECTOR

ESTIMATED COMPLETION/

TRANSFER DATEFY19

RmDevelopments(1) 1 519.2

Lakeside Mall, Benoni Retail March 2020 74.7

Waterfall Mall, Rustenburg Retail April 2020 71.8

La Lucia Mall, La Lucia, Durban Retail November 2019 39.5

Longbeach Mall, Noordhoek, Cape Town Retail August 2019 27.2

Walmer Park Shopping Centre, Walmer, Port Elizabeth Retail June 2019 26.7

144 Oxford Road, Rosebank Office February 2020 457.9

29 Richefont Umhlanga Ridge, Durban Office August 2019 48.0

Millroad Industrial Park, Bellville, Cape Town Industrial March 2020 84.8

Mount Edgecombe Industrial Park, Mount Edgecombe, Durban Industrial September 2019 51.1

Pretoria Head & Neck Hospital, Pretoria Trading & Development April 2020 262.8

Woodburn Centre, Pietermaritzburg Trading & Development November 2019 75.8

Bakers Transport, Cato Ridge, Durban Trading & Development November 2019 238.1

Other below R25m Various Various 60.8

ANNEXURE 23: COMMITMENTS RSA


61

PROPERTIES HELD FOR SALE SECTORFY19

Rm

Sunward Park Shopping Centre, Boksburg, Gauteng Retail 147.0

Edgars, Stanger, Durban Retail 17.0

442 on Rigel - SA Weather Services, Erasmusrand, Pretoria Office 54.0

Sandown Erven 159-162, Sandhurst, Sandton Office 51.3

Commerce Corner, Kramerville Sandton Industrial 34.5

N1 Tyre, Cape Town, Western Cape Industrial 17.1

Neon Erf 26, Fulcom Park, Springs Industrial 4.5

Total 325.4

ANNEXURE 24: NON-CURRENT ASSETS HELD FOR SALE

62

TOP 10 PROPERTIES BY VALUEFAIR VALUE

RmGLAm²

Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria 2 125 56 334Festival Mall, Kempton Park, Johannesburg 1 754 82 754N1 City Mall (100%), Goodwood, Cape Town 1 741 63 397Waterfall Mall, Rustenburg 1 628 49 883Greenacres, Greenacres, Port Elizabeth 1 485 49 530Vaal Mall (66.6%), Vanderbijlpark, Johannesburg 1 386 44 029Lakeside Mall, Benoni 1 346 65 355La Lucia Mall, La Lucia, Durban 1 304 37 287Kolonnade (50%), Montana Park, Pretoria 1 173 38 284The Constantia Village, Constantia, Cape Town 1 135 20 421Sub Total 15 077 507 274Balance of the sector 14 768 874 723Total for the sector 29 845 1 381 997

TOP 10 TENANTSGLA(1)

m²The Foschini Group Ltd 58 922Edcon Holdings Ltd 104 377Pepkor Holdings Ltd 72 001Shoprite Holdings Ltd 135 297Pick n Pay Stores Ltd 112 897Mr Price Group Ltd 56 647Truworths International Ltd 32 070Woolworths Holdings Ltd 87 253Massmart Holdings Ltd 65 715Clicks Group Ltd 27 344Sub Total 752 523Balance of the sector 576 242Total for the sector (excluding vacancies) 1 328 765

14.713.711.113.321.116.06.23.9

FY25 and beyondBy FY24By FY23By FY22By FY21By FY20MonthlyVacant

9.111.211.716.224.418.36.52.6


ANNEXURE 25: RETAIL OVERVIEW RSA

1. Ranked in terms of gross monthly rental.

LEASE EXPIRY (% OF GLA) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)

63


RmGLAm²

Discovery 1 & 2 (55%), Sandton, Johannesburg 2 196 64 127The Woodlands, Woodmead, Johannesburg 1 750 126 051Constantia Office Park, Roodepoort, Johannesburg 1 191 74 242Inanda Greens, Wierda Valley, Sandton, Johannesburg 940 40 774The Place, Sandton, Johannesburg 850 35 396MontClare Place, Claremont, Cape Town 660 29 674Golf Park, Bellville, Cape Town 581 30 838Country Club Estate, Woodmead, Johannesburg 523 33 142Inyanda 1,3 and 4, Parktown North, Johannesburg 457 23 196Hatfield Gardens, Pretoria 428 25 927Sub Total 9 576 483 367Balance of the sector 22 120 1 192 193Total for the sector 31 696 1 657 560


m²Discovery Holdings Ltd (55%) 66 211Deloitte (South Africa) 47 680Transnet 31 535Absa Bank Ltd 27 400EOH Holdings Ltd 38 225Exxaro Resources Ltd 21 708Investec Bank Ltd 13 785Norton Rose (South Africa) 7 969Nestle South Africa (Pty) Ltd 11 986Firstrand Bank Ltd 12 591Sub Total 279 450Balance of the sector 1 221 520Total for the sector (excluding vacancies) 1 500 970

13.412.411.214.715.918.63.410.4


14.512.510.913.916.719.63.58.4



ANNEXURE 26: OFFICE OVERVIEW RSA


64


RmGLAm²

Growthpoint Business Park, Midrand 575 68 701Hilltop Industrial Estate, Elandsfontein, Johannesburg 382 76 283Montague Business Park (25%), Montague Gardens, Cape Town 381 41 008Isobar, Isando, Kempton Park, Johannesburg 247 50 219Adcock Ingram, Midrand 228 21 536Mill Road Industrial Park, Bellville, Cape Town 221 24 891Central Park, Cape Town, Elsiesrivier, Cape Town 217 49 135Wadestone Industrial Park, Germiston 208 21 543Omni Park, Aeroton, Johannesburg 201 41 265N1 Business Park (20%), Midrand 168 22 173Sub Total 2 828 416 754Balance of the sector 10 854 1 845 574Total for the sector 13 682 2 262 328


m²The Bidvest Group Ltd 58 681Adcock Ingram Holdings Ltd 27 280 Consolidated Steel Industries (Pty) Ltd 60 267Scania SA (Pty) Ltd 23 717Distell Ltd 45 636GZ Industries (Pty) Ltd 21 543Heneways Freight Services (Pty) Ltd 25 573Anchor Logistics 25 070Nestle South Africa (Pty) Ltd 16 255Overnight Logistics (Pty) Ltd 32 132Sub Total 336 154Balance of the sector 1 786 444Total for the sector (excluding vacancies) 2 122 598

11.59.814.119.614.619.64.66.2


11.711.814.418.713.518.55.36.1



ANNEXURE 27: INDUSTRIAL OVERVIEW RSA


65

TOTAL GLAm²

VACANT AREAm²

VACANCY%

Balance as at 1 July 2018 5 437 316 295 915 5.4

GLA adjustments 3 641 1 163

Disposals (154 100) (1 403)

Developments and extensions 105 149 105 149

Leases expired in the period (1) 1 067 639

Renewals of expired leases (2) (748 263)

New letting of vacant space (509 831)

Leases terminated 157 183

Balance as at 30 June 2019 5 392 006 367 552 6.8

ANNEXURE 28: GLA & VACANCY RECONCILIATION RSA

1. 19.6% of opening balance GLA expired during the year under review (FY18: 16.2%).2. Retention of 70.1% for the year under review (FY18: 66.6%).

66

FY19 FY18

Vacancies (%) 1.2 1.8


Provision for bad debts (B/S) (Rm) 8.0 7.6

Bad debts (I/S) (Rm) 0.2 0.1

Average in force escalations (%) 7.5 8.4

Renewal success rate (%)(1) 79.4 92.4


Weighted average renewal growth (%) 4.0 6.0

Weighted average future escalations on renewals (%) 7.8 7.8

Number of employees (100%)(2) 205 213


ANNEXURE 29:KEY PERFORMANCE INDICATORS V&A WATERFRONT (50%)

1. Premier Fishing’s lease expired during the period which the V&A chose not renewed. It accounted for 23% of the total renewals for the period at 13 695m².2. An additional 89 permanent staff are employed in terms of a management contract with the Radisson Red Hotel.

67

FY17 FY18 FY19

49.6% 47.3%

21.8%22.6%

19.0%

21.0%9.6%

9.1%

45.7%

FY17 FY18 FY19

50.5% 51.7% 51.5%

24.5%24.0% 24.7%

12.5%11.9%

11.6%6.8%7.7%

7.7%5.7%

4.7%4.5%

NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE

ANNEXURE 30: PORTFOLIO OVERVIEW V&A WATERFRONT (50%)

R594mR522m R657m R8 705m R9 570mR9 141m

23.6%

21.9%

8.8%

Retail Office Hotel & Residential Marine & Industrial Retail Office Hotel & Residential Marine & Industrial Bulk

68

52%

24%

12%

7%5%

46%

23%

22%

9%21%

34%23%

22%

95%

5%

Retail Office Hotel & Residential Marine & Industrial Bulk

PROPERTY PORTFOLIOBY VALUE

NET PROPERTYINCOME

PROPERTY PORTFOLIOBY GLA

DEVELOPED VS. UNDEVELOPED BY VALUE

ANNEXURE 31: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO

Developed Undeveloped

69

SECTORESTIMATED

COMPLETION DATEFY19

RmDEVELOPMENTS & CAPITAL EXPENDITURE(1)

Site B “The Ridge”: Deloitte Office July 2020 27.6

Dock Road Junction Office July 2019 18.5

Woolworths Extension Retail September 2019 21.6

Retail below R18m Various 36.2

Office below R18m Various 31.3

Fishing & Industrial below R18m Various 19.4

Hotel & Residential below R18m Various 36.4

Total 191.0

COMMITMENTS

Site B “The Ridge”: Deloitte Office August 2020 76.0

Woolworths Extension Retail April 2020 28.2

Other below R10m Various Various 13.2

Total 117.4

ANNEXURE 32: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%)


70

FY19Rm

FY18Rm

INCREASE/(DECREASE)

Gross property revenue 920 836 10.0%Property related 852 788Radisson Red Hotel 68 48Property expenses (263) (242) 8.7%Property related (233) (212)Radisson Red Hotel (30) (30)Net property income 657 594 10.6%Rates rebate - 14 100.0%Other operating expenses (29) (30) (3.3%)Net finance income 13 6 (136.4%)Other non-distributable amounts (2) (1) 100.0%Distributable income 639 583 9.7%Adjustments (43) (23)

Office (Dock Road Junction, Battery Parkade & Waterway House North) (5) 1The Silo Hotel (7) (6)Radisson Red (31) (18)

Adjusted “like-for-like” distributable income 596 560 6.5%

ANNEXURE 33: DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%)

71

FY19Rm

FY18Rm

INCREASE/(DECREASE)

Gross property revenue 920 836 10.0%Property related 852 788Radisson Red Hotel 68 48Property expenses (263) (242) 8.7%Property related (233) (212)Radisson Red Hotel (30) (30)Net property income 657 594 10.6%Adjustments (43) (23)

Office (Dock Road Junction, Battery Parkade & Waterway House North) (5) 1The Silo Hotel (7) (6)Radisson Red (31) (18)

Adjusted “like-for-like” net property income 614 571 7.5%

ANNEXURE 34: NET PROPERTY INCOME ANALYSIS V&A WATERFRONT (50%)

72

TOP 10 TENANTS (100%)GLA(1)

m²

Allan Gray (Pty) Ltd 20 357

Nedbank Group Ltd 26 551

Legacy Hotels 16 226

Tourvest Holdings Ltd 2 681

The Foschini Group Ltd 4 472

PwC 9 650

Sun International Hotels 17 100

Newmark Hotels 7 563

National Department of Public Works 17 323

Edcon Holdings Ltd 6 710

Subtotal 128 633

Balance of V&A 316 867

Total for V&A Waterfront (excluding vacancies) (100%) 445 500

47

9

12

15

4

12

1

FY25 and beyond

By FY24

By FY23

By FY22

By FY21

By FY20

Vacant

LEASE EXPIRY (% OF GLA)

33

12

10

16

8

21

0

FY25 and beyond

By FY24

By FY23

By FY22

By FY21

By FY20

Vacant

LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)

ANNEXURE 35: V&A WATERFRONT OVERVIEW


73

TOTAL GLAm2

VACANT AREAm2

VACANCY%

Balance as at 1 July 2018 231 172 4 208 1.8

GLA adjustments (1 225) (258)

Developments and extensions (4 457) (4 457)

Leases expired in the period (1) 59 254

Renewals of expired leases (2) (47 038)

New letting of vacant space (18 058)

Leases terminated 9 089

Balance as at 30 June 2019 225 490 2 740 1.2

ANNEXURE 36: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%)

1. 25.6% of opening balance GLA expired during the year under review (FY18: 20.2%).2. Retention of 79.4% for the year under review (FY18: 92.4%).

74

FY19 FY18

Vacancies (%)(1) 2.0 2.0


Provision for bad debts (B/S) (Rm) - -

Renewal success rate (%) 66.5 51.2


Weighted average renewal growth (%)(2) (8.6) (3.6)

Weighted average future escalations on renewals (%)(3) 3.2 3.4

Number of employees 24 24


ANNEXURE 37:KEY PERFORMANCE INDICATORS GOZ

1. Measurements and ratios are based on income and not GLA (when compared to RSA). 2. Renewal growth of -8.6% impacted by the renewal of 7 Laffer drive which was over rented and renewed at 24.0% lower rent, if excluded total renewal growth is 0.6%.3. Weighted average escalation on entire portfolio WARR 3.3% (FY18: 3.3%).

75

61.3%62.2%

64.1%

38.7%37.8%

35.9%

10.26

9.97

10.15

9.8

9.9

9.9

10.0

10.0

10.1

10.1

10.2

10.2

10.3

10.3

0.00

500.00

1000.00

1500.00

2000.00

2500.00

FY17 FY18 FY19

Office Industrial average exchange rate

26 26 26

31 31 31

FY17 FY18 FY19

NET PROPERTY INCOME NUMBER OF PROPERTIES

66.0%

66.0%

69.0%34.0%

34.0%

31.0%

10.04

10.16

9.89

9.8

9.8

9.9

9.9

10.0

10.0

10.1

10.1

10.2

10.2

0.00

5000.00

10000 .00

15000 .00

20000 .00

25000 .00

30000 .00

35000 .00

40000 .00

45000 .00

FY17 FY18 HY19

Office Industrial closing exchange rate

PROPERTY PORTFOLIO VALUE

ANNEXURE 38:PORTFOLIO OVERVIEW GOZ

R2 174mR2 293m R2 337m 5757 57R33 591mR32 536m R38 705mAUD/ZAR AUD/ZAR

Office Industrial Office Industrial Office Industrial

10.26

9.97

10.1510.04

10.16

9.89

76

69%

31% 29%

28%

25%

8%

6%4%

30%

70%

19%

40%15%

12%

12%

2%

VALUE (AUD) VALUEGLA GLA

ANNEXURE 39:SPLIT OF GOZ PROPERTY PORTFOLIO

Office IndustrialQueensland Victoria New South Wales Western Australia

South Australia ACT

77

ACQUISITIONS(1) SECTOR DATEFY19

RmFY19

AUDm836 Wellington Street, West Perth, WA Office October 2018 1 004.6 91.3

100 Skyring Terrace, Newstead, QLD Office December 2018 2 707.9 250.0

Total 3 712.5 341.3

ANNEXURE 40:ACQUISITIONS & DISPOSALS GOZ

DISPOSALS7 Laffer Drive, Bedford Park, SA Office April 2019 201.9 20.2

89 Cambridge Park Drive, Cambridge, TAS Office April 2019 250.1 25.0

Total 452.0 45.2

1. AUD amount excludes acquisition costs.

78

DEVELOPMENT & CAPITAL EXPENDITURE SECTORESTIMATED

COMPLETION DATEFY19

RmFY19

AUDm

Building 3, 570 Swan Street, Richmond, VIC Office March 2020 567.3 55.9

75 Dorcas Street, South Melbourne, VIC Office June 2019 22.3 2.2

Quad 2, 6 Parkview Drive, Sydney Olympic Park, NSW Office June 2019 15.3 1.5

Other Various 253.1 25.5

Total 858.0 85.1

ANNEXURE 41:DEVELOPMENTS & COMMITMENTS GOZ

1. Due to expansion, lessor works and capex/refurbishment clauses.

COMMITMENTS

1 Charles Street, Parramatta, NSW(1) Office July 2019 59.3 6.0

Building 3, 570 Swan Street, Richmond, VIC Office March 2020 400.4 40.5

599 Main North Road, Gepps Cross, SA Industrial December 2020 450.8 45.6

120 - 132 Atlanic Drive, Keysborough, VIC(1) Industrial December 2028 24.7 2.5

1500 Ferntree Gully Road, Knoxfield, VIC(1) Industrial August 2024 24.7 2.5

Total 959.9 97.1

79

FY19AUDm

FY18AUDm

INCREASE / (DECREASE)

Gross property revenue 276.0 259.1 6.5%

Property expenses (45.6) (40.6) 12.3%

Net property income 230.4 218.5 5.4%

Adjustments (24.4) (18.2)

Acquisitions (15.5) (2.5)

Disposals (3.3) (7.5)

Developments - (0.6)

GMF & ADI distribution (5.6) (7.6)

Adjusted “like-for-like” net property income 206.0 200.3 2.9%

Office 128.7 125.3 2.7%

Industrial 77.3 75.0 3.1%

ANNEXURE 42:NET PROPERTY INCOME ANALYSIS GOZ

80

TOP 10 PROPERTIES BY VALUE

FAIR VALUE

RmGLAm²

1 Charles Street, Parramatta, NSW Office 3 490 32 356100 Skyring Terrace, Newstead, QLD Office 2 482 24 66570 Distribution Street, Larapinta, QLD Industrial 2 299 76 10975 Dorcas Street, South Melbourne, VIC Office 2 101 23 81120 Colquhoun Road, Perth Airport, WA Industrial 1 730 80 374Optus Centre, 15 Green Square Close, QLD Office 1 511 16 442Building C, 219 - 247 Pacific Highway, Artarmon, NSW Office 1 303 14 375333 Ann Street, Brisbane, QLD Office 1 284 16 341599 Main North Road, Gepps Cross, SA Industrial 1 246 67 238Building 3, 572 - 576 Swan Street, Richmond, VIC Office 1 097 - (1)

Sub Total 18 543 351 711Balance of GOZ 20 162 674 755Total for GOZ 38 705 1 026 466


m²Woolworths 282 041NSW Police Department 32 356Commonwealth of Australia 36 343Bank of Queensland 13 237Linfox 58 077Country Road Group 23 156Samsung Electronics 13 423Lion 12 317Australia and New Zealand Banking Group 13 744Jacobs Group 8 207Sub Total 492 901Balance of GOZ 519 624Total for GOZ (excluding vacancies) 1 012 525

4219816682

FY25 and beyondBy FY24By FY23By FY22By FY21By FY20Vacant

LEASE EXPIRY (% OF INCOME)

ANNEXURE 43:GOZ OVERVIEW

1. Building under development.2. Ranked in terms of gross monthly rental.

81

TOTAL GLAm2

VACANCY(1)

%

Balance as at 1 July 2018 1 003 444 1.7

GLA adjustments (396)

Disposals (13 219)

Acquisitions, developments and extensions 36 637

Balance as at 30 June 2019 1 026 466 2.0

ANNEXURE 44:GLA & VACANCY RECONCILIATION GOZ

1. Vacancy ratio is based on income and not GLA (when compared to RSA).

Thank you

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