Redefine Group results for the six months ended 29 February 2020 1 · Redefine Group results for...

1Redefine Group results for the six months ended 29 February 2020


Our conversation

We apply an integrated management approach to focus on what matters most

Grow Reputation

Invest Strategically

Optimise Capital

Operate Efficiently

Engage Talent

Creating sustained value for all our

stakeholders

Securing capital in a constrained and costly

environment

Operating in a low growth, rising

administered cost context

Harnessing our people’s skills,

abilities and attitudesLiving our purpose

Strategic matters

Strategic objectives


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Growing reputation01

Our purpose drives us to add value to the lives of our stakeholders

Section


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EnvironmentIncreased solar PV capacity to 25.1 MWp (26 plants)

Green Star certification of 26 buildings in progress, which will take the total Green Star certifications to 100

Developed Green Tenant Guidelines and Supplier Code of Conduct to enforce environmental best practice

SocialReceived a global CDP Supplier Engagement A rating

Total mentees matched to mentors now 1 514 on The Mentorship Challenge platform

Maintained Level 3 BBBEE contributor status

GovernanceFilling the financial director role an opportunity to address diversity

Awarded AAA ethics rating from Ethics Monitor

All board committees comprise independent non-executive directors

Key outcomes for the first half of 2020

The role of ESG has been elevated in every aspect of what we do

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After-hours water consumption at Golden Walk after the smart valve installation

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After-hours water consumption at Golden Walk prior to the smart valve installation

m³ m³

Golden Walk – total flow


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Our response to COVID-19

Embedding sustainable relationships leading up to and during the lockdown

Stakeholder emphasis to position Redefine for business continuity

Collaborating with investors and funders is underway to ensure that Redefine is provided the space to take the requisite

actions to weather the challenging financial conditions that will arise during and post the lockdown

Reinforcing our purpose and values, so that employees have clarity and are empowered to make commercially defendable

decisions on their own and quickly, while remaining accountable for their actions is a priority during the lockdown

Offering unique value to affected tenants through relief and assistance packages to support their liquidity needs during the

lockdown

Supporting and working closely with our suppliers, brokers and service providers to ensure their businesses survive this

period and position us to receive improved levels of service

Using this crisis as an opportunity to deepen our community purpose by ensuring that we remain focused to create and manage

our spaces in ways that play supportive roles to those more vulnerable than us


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Looking ahead as the new normal unfolds

Achieving stakeholder goals to create sustained value

A source of sustained growth in total returns for

investors and funders

An employer of choice for employees

A differentiated provider of relevant space to tenants

A preferred business partner for brokers and suppliers

A responsible community participant

Second half 2020 focus

Deepen communication and collaboration

Remain relevant to stakeholders

Heighten focus on ESG

Anticipated outcome

Build brand loyalty

Improve stakeholder perceptions

ESG considerations in all aspects of what we do

Our stakeholder goals


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Investing strategically02Section

Positioning the core portfolio to remain relevant to users’ needs


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54

776

1 843

ELI acquisitions

Working capital

Development activities & capex


Advancing our strategy to diversify, grow and improve the quality of the property asset platform

Property assets under

management now at

R89.2 billion

Offshore expansion totalled

R1.0 billion, with R0.6 billion

invested in Poland

Deployed R1.9 billion

into property assets

Local development activity

totalled R0.8 billion

Capital deployed of R2.7 billion

628

409387

193

179

2423 Capital allocated to developments and capex

European Logistics platform

Retail

Australian student accommodation

Office

Local student accommodation

Industrial

Residential

Rm

80% of property asset

base is local

Progress made on

simplifying and right-

sizing asset portfolio


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Local portfolio profile

A well-located, high-value, high-quality and efficient portfolio

(FY19 | R72.8bn)

(FY19 | 73%)

(FY19 | 18%)

(FY19 | 40%)

(FY19 | 36%)

(FY19 | 19%)

Carrying value

R71.3 billion

73% located in

Gauteng

17% located in

Western Cape

Retail 40% of local

portfolio value

Office 36% of local

portfolio value

Industrial 20% of local

portfolio value

11 09612 870

14 38215 854 15 608

312327 315 302 300

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100

150

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300

350

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10 000

15 000

20 000

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FY16 FY17 FY18 FY19 HY20

Impact of portfolio restructure

Average value per m² (R) Number of properties (#)

R #


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Local portfolio headlines

A focus on organic growth

(HY19 | 456 717m²)

(FY19 | R236m)

Active portfolio revaluation

of -0.7%

Completed developments

totaling R94.7 million

Disposals totalling

R707 million

Total letting

at 455 553m²

Average valueper property ofR232 million

Continued focus to right-

size retailers footprint to

improve trading performance

Quality tenants and tenant

retention the key driver of

office performance

Industrial developments

tenant driven with emphasis

on efficiency through design

8.5%

8.6%

9.3%

9.6%

10.6%

0% 2% 4% 6% 8% 10% 12%

Retail

Office

Industrial

Specialised

Student accommodation

Exit cap rate per sector

4% 4%

14%16%

11%8%

36%

7%

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1 200

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Monthly 2020 2021 2022 2023 2024 Beyond2024

Vacancy

Lease expiry profile by GLA (m²)

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* Figures are based on top 19 shopping centres

** Excludes monthly leases

# Excluding properties under development and new GLA

Local retail portfolio overview

Differentiating by creating outstanding places for modern consumer lifestyles

37%

35%

16%

6%

6%Value by type (%)

R28.1 billion

Value

(FY19 | R28.8bn)

3.6%#

Trading density growth

(FY19 | 3.0%)

8.0%*

Rent to turnover

(FY19 | 8.0%)

Completed refurbishments

of R47.5 million

1.4 million m²

GLA

(FY19 | 1.4 million m²)

4.3%#

Sales growth

(FY19 | 4.2%)

95.8%

Tenant retention by GLA

(FY19 | 94.1%)

Edcon (excl. CNA)exposure reduced by 12 286m² to 55 583m²

5.6%

Active vacancy

(FY19 | 4.6%)

-0.3%*

Footfall growth

(FY19 | -1.8%)

-2.5%

Renewal rent reversion

(FY19 | -1.8%)

52.4%**

Renewal success rate by GLA

Community / Small regional

Regional

Super regional

Neighbourhood

Other


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* Excludes monthly leases

Local office portfolio overview

Efficient, modern facilities to enable work-life integration

51%

34%

15%

Value by grade (%)

R25.1 billion

Value

(FY19 | R25.4bn)

93.3%


(FY19 | 91.4%)

Completedrefurbishments

of R208.0 million

1.2 million m²

GLA


-1.5%

(FY19 | -2.0%)

2 500 kWp

Solar PV roll-out of

12.3%

Active vacancy

(FY19 | 10.2%)

57.0%*


at 155 West

Street

R92.4 million

Disposals

Renewal reversion

Installation of WeWork

Rosebank Link achieved a 4 Green Star ‘design’ and a 5 ‘as built’ rating

Premium

A grade

Secondary

(FY19 | 56.7%)

Good exposure to premium node Rosebank


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* Excludes monthly leases

Local industrial portfolio overview

Incorporating key design elements to functionally differentiate our offering

R13.7 billion

Value

(FY19 | R13.8bn)

72.5%*

1.8 million m²

GLA


2.1%

Active vacancy

(FY19 | 1.8%)


Land disposals

of R104.2 million

97.1%


(FY19 | 93.8%)

9.4%

(FY19 | -3.6%)

Renewal rental growth

R241.4 million

Developments in progress Infrastructure

projects

in progress

R468.5 million(FY19 | 65.7%)

Hi-tech industrial

Industrial units

Warehousing / Logistics

Light manufacturing

Heavy grade industrial

Vacant land

Retail warehouse

46%

20%

11%

8%

8% 7%1%

BY VALUE (%)


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Local student accommodation Loans High yielding

Redefine’s interests → Current bed capacity at 8 377

→ Loans of R2.1 billion to various

third parties attracting commercial interest

rates

→ Solar PV plants

→ LED screens, exterior media, kiosks

and wi-fi

→ Park Central residential development

→ Oando Wings

Platform profile

→ Lockdown resulted in shutdown of

universities and residences largely vacated

→ All new development projects placed on

hold to preserve liquidity and due to risk of

not completing it on time for 2021 academic

intake due to disruption by COVID-19

→ Loan to BEE consortium for Delta shares

disposal reflected in the books at market

value of the Delta shares

→ 26 solar PV plants generate 25.1 MWp

→ Non-GLA income growing by 7.5%

→ Park Central comprising 159 units – 36.1%

and 25.7 % by value sold and let out

respectively

Priorities→ Initial disposal transaction fell through,

however demand for specialist assets still

presents recycling opportunity

→ Provide loan funding to secure strategic

partners and provide transformed

opportunities

→ Downside risk on Delta to be mitigated

→ Pipeline of solar PV projects to add another

794 kWp

→ Leverage non-GLA opportunities off

property base

→ Sell / rent Park Central units

→ Sale of Oando Wings to Growthpoint

Investec African Properties

Alternative investments

Diversifying income streams


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*Including Redefine’s foreign borrowings

**Including local assets and borrowings net of cash

International portfolio profile

Geographic diversification in hard currency markets

(FY19 | R22.6bn)

(FY19 | R37.3bn)

(FY19 | R33.1bn)

(FY19 | R12.6bn)

(FY19 | R10.0bn)

(FY19 | 51.7%)

Carrying value

R17.9 billion

Proportional share of

assets R34.8 billion

Proportional share of debt*

R32.4 billion

Listed securities

R12.0 billion

Direct properties

R5.9 billion

Redefine see through

LTV** 52.4%

60%

22%

16%

2%

Geographic spread by value (%)

Poland

Australia

United Kingdom

Africa


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International portfolio headlines

Seeking active asset management opportunities to unlock and sustain value

Disposal of Strykow

EUR49.2 million at a

yield of 6.1%

EPP NAV per share

EUR1.32

EPP carrying value

impaired by

R442.4 million

Introduced joint venture

partner into ELI

Leicester Street

(Australian student accomm.)

average occupancy at Feb

83%

RDI carrying value

impaired by

R121.5 million

55%

18%

14%

9%

4%Value by type (%)

Retail

Hotel

Office


Industrial


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European Logistics platform overview

Economic growth, e-commerce expansion and infrastructure improvement drives demand

EUR270.3 million

Value of income producing assets

392 384m²

(FY19 | 444 114m²)

EUR13.6 million

GLA added through developments 25 510m²

9.9%

Income producing GLA

Activevacancy

New

developments in progress of EUR62.3 million

Weighted average unexpired lease

term 4.1 years

Completed newdevelopments of

Madisonintroduced as ajoint venture

partner

EUR3.3 million

Disposal of Stykow


0.0%

EUR49,2 millionat yield of 6.1%

36.5%

(FY19 | 13.6%)

(FY19 | -3.8%)

Renewal reversion

(FY19 | 4.5 years)

Acquisition of

15.9ha of land with 72 310m² developable bulk

(FY19 | R295.0 million) (FY19 | 130 633m²)

(FY19 | 16.0%)

29%

26%16%

12%

10%4%

2% 1%

GLA by tenant type (%)

Retailer

Distribution

Production

3PL

Delivery

Vacancy

Packaging

Supplier


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Protecting our net asset value

Focus on restoring value of under-performing assets

RDI REIT PLC Delta Oando Wings

Redefine’s investment has declined

R2.2 billion in carrying value since

August 2016

Changing retail behaviour, Brexit and

balance sheet risk contributed to the loss

in value

Redefine continues to work closely with

RDI to evaluate all options which may

require Redefine to remain invested in

the medium term without committing

further equity

A number of opportunistic approaches to

acquire the RDI shares referenced off

current market prices have been

received and declined

The loan to Cornwall Crescent (BEE

consortium) is reflected at Delta’s share

price as Redefine’s sole recourse is to

the shares

The loan has been written down by

R1.4 billion since inception (June 2017)

– from R9 to under 50 cents per share

Redefine is working closely with

Cornwall Crescent to restore some of

the lost value which, due to COVID-19

has been placed on hold

Growthpoint Investec African Properties

(GIAP) has concluded a portfolio

transaction with our partners RMB

Westport

The sale of our share in Oando for

shares in GIAP has been concluded and

is subject to regulatory clearance by the

Nigerian authorities


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Capital allocation priorities 2020

Allocating capital to position platform for sustained value creation

Improving: R170 million Expanding: R1.0 billion

Revenue enhancing operational capital

expenditure

Solar PV / Smart metering

Local retail development activity

European Logistics platform developments

Australian student accommodation expansion

Local retail developments

Local industrial developments

Local student accommodation developments

Defending: R129 million Protecting: R78 million

Local operational capital expenditure

Local retail capital expenditure

Local office capital expenditure

Capital enhancing operational capital

expenditure

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Low

Hig

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Long-term value creation potential

Limited Significant


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Systemic changes in behaviour will shape how we will live, work and play

Retail

→Tenant mix and store offerings will be influenced by a change in consumer behaviour

→Consumers may permanently change their preferred buying channel for certain categories toward e-commerce

→Current preference of neighbourhood / convenience centres becoming the norm

Office

→Trend toward densification and open-plan layouts may reverse

→Public-health officials may increasingly amend building regulations to limit the risk of future pandemics

→Offices expected to maintain its appeal for facilitating interaction, collaboration and productivity

Industrial

→Supply chain risk mitigation and increased levels of inventory further boost already high demands for industrial (logistics /

warehousing)

We are now shifting our thinking ahead to when the crisis is over to:

→Provide a better, and more distinctive, tenant and customer experience

→ Importantly ensure our offering keeps pace with the evolving dynamics of space usage

At this stage, it is not possible to assess the full impact of COVID-19 on the future carrying value of property assets


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Simplified, focused and significant in each sector / geography


Renewed focus on space offering

Offshore expansion through development activity

Protect value of property assets

Anticipated outcome

Improve relevance of local portfolio

Expand offshore logistics platform

Minimise TNAV downside risks

Indicative asset platform 3+ years

Property portfolio

Retail

Office

Industrial

Direct local property portfolio

Direct Polish properties

International listed securities

EPP N.V.European Logistics platform


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Optimising capital03Section

Dusting off playbooks from earlier crises is a waste of time


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Strengthening the balance sheet continues to be our most important strategic priority

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Vendor loans repaid

Recycling of capital

Debt raised

Sources of capital of R2.7 billion

(FY19 | R5.8%)

(FY19: 43.9%)

(FY19: 4.3x)

(FY19: 87.3%)

Average cost of debt

increased by 30bps to 6.1%

LTV increased to 44.2%

Interest cover ratio

at 3.7x

Interest rate hedged

on 88.7% of total debt

Healthy liquidity levels, and

all near term debt maturities

substantially refinanced

Funded deployment of capital of R1.9 billion and working

capital of R0.8 billion

Moody’s investment grade

credit rating downgraded to

Ba1 in line with Sovereign

Rm


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Analysis of secured and unsecured debt to property assets

Financial market conditions demand prudent balance sheet management and careful liquidity planning

* Cross currency swaps do not require cash margining

** Local debt net of cash (including cash flow received from sale of ELI on 11 March 2020)# Includes offshore assets of R0.3bn securing local debt## Includes local assets of R5.6bn securing offshore debt

AssetsRbn

DebtRbn

LTV

Secured 58.1 26.9 46.3%

Local 47.0# 21.5 45.7%

Offshore 11.1## 5.4 48.6%

Unsecured 31.1 11.3 36.3%

Local** 19.0 9.6

Offshore 12.1 1.7

Group loan-to-value before inclusion of cross currency swaps 89.2 38.2 42.8%

Mark-to-market unsecured cross currency swaps* 1.2

Local deposit (8.7)

Foreign debt 9.9

Group loan-to-value 89.2 39.4 44.2%


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Update on lowering the LTV

Proven track record in recycling assets despite challenging conditions

Improving the LTV is being addressed through a combination of

→ Local non-core property disposals in progress totalling R2.9 billion

→ Selling Australian assets to realise R4.3 billion

→ Receipt of earn-out fee totalling R0.6 billion from European Logistics platform developments in progress

→ Limiting speculative capital expenditure

→ Moratorium on acquisitions

→ A distribution reinvestment programme considered to be inappropriate given the share price

→ Implementation of dividend pay-out policy

→ Restoring value of under-performing assets

→ Deferment of decision on 2020 dividend to November


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Adopted a “manage for liquidity and sustainability and not for profit” attitude

→ 73% of April billings collected – May collections will be heavily impacted by lockdown and rental relief packages

→ Liquidity headroom sufficient to absorb ±50% rental decline and 100% dividend withholding from foreign investments up to Aug 2020

→ Banks' attitude is supportive and pragmatic with regards to access to liquidity and covenant compliance

→ R7.7 billion of DCM listed notes outstanding, only R834 million matures in next 12 months

→ All listed offshore entities are sufficiently capitalised to meet liquidity needs

→ Engaging with regulatory bodies on REIT listing requirements and tax implications

Risks during COVID-19

LTV

impact

ICR

impact

Rental relief during lockdown period, and rental deferments X

Property devaluation X

Delayed transfer on sale of non-core properties or sale cancellations X

Possible restrictions on development activity X X

Foreign investments withhold dividends to maintain liquidity X

Further impairment of foreign investments X

Continued ZAR depreciation X

Further credit rating downgrade resulting in higher debt costs X

Strictest covenants LTV = 50% and ICR = 2x

LTV sensitivity analysis

LTV

impact

Rand at 19 April spot FX rates +2.4%

Rand at 19 April spot FX rates and then depreciates by 5% +0.5%

SA property values decrease by 10% (-R7.1bn) +3.6%

EPP written down to listed price (R6.75 per share) +3.1%

RDI written down to listed (GBP0.6 per share) +0.8%

ICR sensitivity analysis 29 Feb 2020

Stressed* at

31 Aug 2020

ICR 3.7 2.5

*Stressed forecasted ICR assumes:

- no foreign cash dividend income from associates, and

- decrease in SA and ELI rental income by 25% for next six months


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5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Jan

18

Feb

18

Ma

r 1

8

Apr

18

Ma

y 1

8

Jun 1

8

Jul 18

Aug 1

8

Sep 1

8O

ct 18

No

v 1

8

De

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8

Jan

19

Fe

b 1

9

Ma

r 19

Apr

19

Ma

y 1

9

Jun 1

9Jul 19

Aug 1

9

Sep 1

9

Oct 19

No

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9

De

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9

Jan 2

0

Feb

20

Ma

r 2

0

Apr

20

Redefine forward yield R186 yield 5 year swap rate


Pre-empting the race to liquidity

Drivers of the cost of capital


Right-size asset footprint to capital base

Bolster liquidity

Apply dividend pay-out policy

Anticipated outcome

Maintain and improve credit metrics

Meet funding commitments and cover short term

liquidity needs

Lower LTV ratio


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Operating efficiently04Section

Managing the variables under our control


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A solid local first half performance in a challenging environment

(HY19: 11.7%)

Active portfolio margin

at 83.0%

Active portfolio occupancy

at 94.0%

Group revenue growth

of 9.6%

New lets 191 840m² and

renewed 263 713m² at an

average increase of 2.2%

Tenant retention

rate at 95.7%

Non-recurring income

almost phased out

2 420 2 5341 801

116 124

16

2 536 2 658

1 817

0

1 000

2 000

3 000

4 000

HY18 HY19 HY20

Rm

Distributable income analysis

Recurring income Non-recurring income

(HY19: 83.4%)

(FY19: 94.9%) (FY19: 93.3%)


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Financial headlines for the first half of 2020

Financial year 2020 will be a tale of two halves

(HY19: 49.19 cents)

(HY19: 16.8%)

(FY19: R45.5 billion)

Half year distributable

income per share 33.46 cents

Net operating cost to income

ratio 17.4%

Market capitalisation at

R13.2 billion

Deferment of half year

dividend payout

Local debt cost increase

due to debt reorganisation

TNAV declined by 59.6 cents

per share to 884.3 cents

per share

Only dividend income

received has been

recognised

Bulk of distributable income

decline due to negative

international contribution

39.0 41.7 44.8 47.3 49.233.5

41.0 44.3 47.2 49.8 51.8

80.086.0

92.0 97.1 101.0

33.5

0

20

40

60

80

100

120

FY15 FY16 FY17 FY18 FY19 HY20

CPS

Distributable income per share

Interim Final

91

2

94

3

91

3

97

7

94

4

88

4

1 0

34

1 0

56

1 0

23

1 0

83

1 0

48

88

4

1 148 1 102 1066 1 035

785

543

400

600

800

1 000

1 200

1 400


CPS

Net asset value per share growth

NTAV NAV Share price


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Contributors to growth in distributable income

Operating in an environment where the knowns are outweighed by evolving unknowns

Rm

Tailwinds

R228 million

Headwinds

(R1 069 million)

HY 2019distributable

income

Local active portfolio

NOI growth

HY 2020distributable

income

Loweradmin costs

Local developed properties NOI growth

Australianstudent

accomm.

Highernet SA finance charges

Lower income on Cornwall

Oando Wings

income not accrued

NOI of local disposed properties

Increase in EUR

funding cost

EPPdividend not

accrued

Increase in AUD

funding cost

Lower sundry income

Chariot income not

accrued

RDI dividend

not accrued


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Decline in net asset value per share (cents)

Our diversified asset platform is capable of absorbing shocks and providing a platform for sustained growth

GBP 4.7

EUR 1.2

USD 0.3

AUD (0.2)

Journal (1.0)

Cromwell (1.1)

Other (1.3)

RDI (1.8)

31 Aug 2019 NAV

OtherStatutory profit excl

revaluation, impairments, amortisation,

EAP and forex

Distributions paid

Write down of goodwill

and intangible

assets

29 Feb 2020 NAV

NAV decrease of international

assets

FV of hedges

Forex gain on international

investments

Forex loss on foreign

denominated loans

Impairment of

international assets

Revaluation of SA

property portfolio

AUD 0.2

USD (0.1)

EUR (1.2)

GBP (6.1)

Oando (0.8)

RDI (2.3)

EPP (3.8)

Intangibles (5.8)

Goodwill (97.7)

EUR 1.4

ZAR (0.9)

*TNAV – Tangible net asset value

TNAV*

943.9TNAV


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Supporting the recovery and sustainability of our stakeholders is top of mind

→ A significant amount of work is going into agreeing rental relief packages with emphasis on supporting SMMEs

→ Rental relief is structured according to categories – but handled on a case-by-case basis

→ Negotiations, through the Property Industry Group, are ongoing with large and medium retailers

→ No dividend income from offshore entities, with the exception of European Logistics platform, is anticipated in 2020

→ Proactive utility management and unlocking procurement and discretionary expenditure efficiencies

→ All non-essential costs have been frozen or deferred to support liquidity and absorb extra costs

→ Continued support for all our suppliers and third-party representatives

4%

8%

9%

13%

33%

33%

0% 20% 40%

Pharmacy and personal care

Restaurant and food

Financial services

Grocery Stores / Supermarkets

Other

Apparel

Retail (GMR %)

6%

13%

15%

31%

35%

0% 20% 40%

Warehousing

Midi units and other

Light manufacturing

Modern logistics

Heavy Grade Industrial

Industrial (GMR %)

4%

7%

9%

11%

13%

20%

36%

0% 20% 40%

Retail

Construction, mining & property

IT & Tech

Legal

Government

Other

Financial services

Office (GMR %)

Tenant categorisation by sector


Op

era

ting e

fficie

ntly


Letting will be reshaped by low levels of confidence and tight economy


Support tenants through rental relief

Proactive utilities management and re-prioritise

discretionary expenditure

Unlock procurement and operational expenditure

efficiencies

Anticipated outcome

Secure sustainability of tenants

Mitigate impact of lower revenue

Eliminate non-recurring income


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35

Engaging talent05Section

Our values are the glue that holds our people together


En

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t


The right people in the right place at the right time

Remuneration policy

approved with

overwhelming support

50 learners on the

2020 programme

8 682 hours of

training and

development

Certified as a

Top Employer for 5th

consecutive year

Transformation

across all levels in

progress

Employee

engagement score of

87% - above global

and local benchmark


En

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gin

g ta

len

t


Remaining engaged, motivated and connected through a refreshed people plan

→ A dedicated COVID-19 task team established to implement a coordinated response across the business to ensure

health, safety and wellbeing of all our stakeholders

→ Activated business continuity plans to minimise disruption by initiatives implemented to curb the spread of the virus

→ Our people have all responded positively to the work-from-home challenge

→ A staff communication plan was launched using our values as the driver and emphasising our purpose

→ The focus has now shifted to planning for the eventual return to normalcy


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Our people are our strategic differentiator

Second half 2020 focus Anticipated outcome

Instil a culture of innovation and learning

Accelerate transformation

Refresh organisational structure

Keep staff engaged and motivated

Improve transformation across all levels

Position management for the new normal


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Outlook

A fluid game plan to make decisions and adapt to new rules that emerge

Using the COVID-19 crisis as an opportunity

CConnect: Heighten communication and

collaboration with all stakeholders

OOthers: Reassess what sustained value

means to others – all our stakeholders

VValues: Live our values no matter what

the situation

IInnovation: Leverage our purpose as a

tool to stimulate innovation

DDisruption: Focus on what matters most

to deliver on our strategic priorities

Operating in an environment where the knowns are outweighed by evolving unknowns, we are not in a position to provide the market with distributable income guidance

Distributable income retained to bolster liquidity

1 817

1 504

426

175 13

Distributable income retained

Providers of debt

Government and regulatory bodies

Employees

Minority interest holders

Rm


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Supplementary information06Section


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Top risks

Uncertainty pertaining to long-term impact of geo-political and socio-economic growth factors

Impact of disruptive technologies

Inability to sustain business operations and services following a disaster or adverse event

Deteriorating public / state infrastructure and poor administrative delivery locally

Financial market volatility

Inability to effectively manage our reputation

Failure to comply with local and international laws and regulations

Inability to be environmentally resilient

Damage to property and security-related threats

Inability to prevent computer fraud and respond to cybersecurity attacks

Long-term impact of failing to transform at an acceptable rate

Increased competition for tenants

Inability to maintain strong ethical and governance culture

Misalignment with international partners (in country)

Elevated top risk Unchanged top risk Reduced exposure


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Snapshot of our value creation scorecard by key stakeholder

A source of sustained growth in total returns for investors and funders

Outcomes : On track Requires focus Work in progress Introduced in 2020 Not available

Value creation indicator

Distributable income per share down

Reduction of non-recurring distributable income

Deterioration of loan to value ratio to 44.2%

Tangible net asset value per share decrease of 6.4%

Total return to shareholders at -2.8%

Redefine forward yield improvement

Perception score on strategy (consistency on delivery)

Perception score on governance (particularly board independence)

Perception score on disclosure and communication

Moodys credit rating maintained

Inclusion in FTSE4Good sustainability index

Implementation of green funding strategy

Value creation outcome

HY 2020 FY 2019

Active portfolio operating margin ✓X

=

N/A

✓X

X

X

X

✓

=X

==

✓

✓

✓

=

X

X

X

X

✓

✓

✓

N/A

✓ X =


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An employer of choice for employees


Achieve training and development targets - 8 682 hours recorded

Improvement in communication platforms and use of technology

Transformation progress across all levels

Ensure fair and responsible remuneration

Responsible management of staff complement and staff turnover

55% of vacancies filled through internal appointments

Absorption of learners and youth identified through upliftment programmes into formal employment

Employee engagement maintained

Number of employees mentored through Mentorship Challenge

Change in employee behaviour due to environmental awareness campaigns

Ethics survey score


Certified Top Employer status ✓

✓

=

N/A

✓

✓

✓

=✓

X

✓

=

✓X

✓

✓

X

=

N/A

=

✓

N/A

N/A

HY 2020 FY 2019

✓

Outcomes : On track Requires focus Work in progress Introduced in 2020 Not available✓ X =


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A differentiated provider of relevant space to tenants


Tenant retention on target

Occupancy rate maintained

Footfall in shopping centres maintained

Development to uplift capital and improve spaces

Rollout of solar PV

Address tenant concerns raised through Challenge Convention

Growth in tenant-generated turnover in retail spaces

Increase number of Green Star certifications

Reach tenants through sustainability awareness campaigns

Measures put in place to monitor / address issues around environmental impact caused by tenants

Improved complaint management turnaround times

Improved tenant satisfaction levels

Innovative solutions implemented in idle spaces


Growth in total gross lettable area (GLA) space provided X

✓

✓

N/A

✓X

✓

✓

✓

✓

====

✓

✓

✓

✓

X

✓

✓

✓

✓

N/A

N/A

N/A

= N/A

HY 2020 FY 2019



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A preferred business partner for brokers and suppliers


Procurement spend towards empowering suppliers

Increased share of broker let business

Leverage procurement efficiencies

Enterprise and supplier development of SMMEs

Suppliers agreeing to adhere to Redefine’s code of conduct


Level 3 broad-based black economic empowerment (BBBEE) rating ✓

✓

✓

===

✓

✓

✓

✓

N/A

N/A

HY 2020 FY 2019



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A responsible community participant


Increased stakeholders engaged with the Challenge Convention

Increased mentees matched to mentors under The Mentorship Challenge

Health and safety scores improved

Increased carbon emission savings from solar installations

Local community members employed as suppliers and or as staff of tenants

Achievement of Corporate Social Investment goals

Projects implemented to improve sustainability and the environment in and around our buildings

Development activity to support climate resilience

Implement ESG strategy


Contribution to community engagement (through CSI and the second Challenge Convention) =X

=

✓

✓

✓X

=

✓

=

✓

✓

✓

N/A

X

✓

N/A

N/A

N/A

N/A

HY 2020 FY 2019



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Simplified distributable income statement

RmCents per

Share Change %

HY 2019 distributable income 2 658 49.2

Less HY 2019 non-recurring income (124) (2.3)

HY 2019 recurring distributable income 2 534 46.9

Less: dilution arising from new shares - (0.2)

Less: impact of non-accrual of foreign income (614) (11.3)

1 920 35.4

Organic growth (119) (2.2)

HY 2020 recurring distributable income 1 801 33.2 (6.2%)

Add HY 2020 non-recurring income 16 0.3

HY 2020 distributable income 1 817 33.5 (32.0%)

HY 2020Rm

HY 2019Rm

change%

NOI from investment properties 2 699 2 561 5.4%

Sundry and trading income 21 39 (46.2%)

Total revenue 2 720 2 600 4.6%

Administration costs (114) (133) (14.3%)

Net operating profit 2 606 2 467 5.6%

Net finance charges (745) (484) 53.9%

South African distributable income 1 861 1 983 (6.2%)

International distributable income (44) 675 (106.8%)

Distributable income 1 817 2 658 (31.6%)


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Funding snapshot

Funding sources

HY 2020

Rbn

FY 2019

Rbn

Bank borrowings 11.9 12.9

Listed bonds and commercial paper 7.7 9.2

Foreign-listed bonds 2.0 2.5

Unlisted bonds 17.9 16.6

Total debt 39.5 41.2

Mark-to-market of cross currency swaps 1.2 1.0

Cash* (1.6) (0.4)

Non-current liabilities held for sale 0.3 -

Net debt 39.4 41.8

Loan-to-value ratio (min required <50%) 44.2% 43.9%

Average term of debt 3.2 years 3.4 years

% of debt secured 68.1% 66.3%

% of asset secured 65.1% 65.3%

Weighted average cost of ZAR debt 8.9% 9.1%

Weighted average cost of FX debt 2.3% 2.3%

Weighted average cost of total debt 6.1% 5.8%

% of ZAR debt hedged 94.0% 92.6%

% of FX debt hedged 78.4% 79.3%

% of total debt hedged 88.7% 87.3%

Average term of hedges 3.0 years 2.9 years

Undrawn facilities (Rbn) 3.5* 5.6

Interest cover ratio (min required >2x) 3.7x 4.3x

*Including cash flow received from sale of ELI on 11 March 2020


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Active portfolio income analysis

41%

38%

19%

2%

41%

38%

19%

2%

* Properties owned for 12 months in both years

** Net of recoveries

HY 2020

Active portfolio NOI contributionHY 2020

Rm

HY 2019

Rm

Change

%

Active portfolio revenue* 3 128 2 946 6.2%

Active portfolio costs** (531) (488) 8.8%

Property income from active portfolio 2 597 2 458 5.7%

Net operating income from acquired/development properties 39 18 116.7%

Net operating income from disposed properties 63 85 (25.9%)

Net operating income from investment properties 2 699 2 561 5.4%

Active portfolio margin % 83.0% 83.4%

Retail

Industrial

Office

Specialised

HY 2019


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Debt funding profile

0.8

2.3

8.8 8.5

6.5

4.5

1.6

-

2.2 3.0

5.7

7.2 8.0

2.9 2.0

-0

2

4

6

8

10

2020 2021 2022 2023 2024 2025 2026 2027

Maturity of South African debt

Debt Hedges

0.4 0.7

5.4

3.9

4.9

1.6

- -0.4 0.7

3.2 4.1 3.8

0.9

- -0

2

4

6

2020 2021 2022 2023 2024 2025 2026 2027

Maturity of foreign debt

Debt Hedges

Rbn

47.156.4

60.465.9 68.1

62.2

01020304050607080


Equity headroom for the unsecured lender

1%

1%

1%

1%

2%

2%

3%

4%

4%

5%

5%

5%

8%

10%

13%

17%

18%

NAB and Bank of China

Nedbank

ABSA - UL

Commercial paper

National Bank of Australia

Liberty

Investec

Standard Bank

Exchangable bond

RMB

Standard Bank IOM

Standard Chartered

Standard Bank - UL

Nedbank - UL

Listed Bonds

RMB - UL

ABSA

Sources of debt (%)

Rbn

Rbn

27%

35% 36% 35%

42% 40%

0%

10%

20%

30%

40%

50%


Unsecured debt / unencumbered assets

%

71%

58%

68% 70%66% 68%

60%53%

63%67% 65% 65%

0%

20%

40%

60%

80%


Secured debt / secured assets

Secured debt Secured assets

%

UL = Unlisted Bonds


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* Net of cash and cash deposits on cross currency swaps

** The over exposure to GBP debt is due to the impairment of RDI

The debt has no recourse to the GBP assets, therefore it does not create liquidity risk but only NAV risk

Currency analysis of property assets and borrowings

HY 2020 FY 2019

Currency

Property assets

RbnDebtRbn

NAV hedge%

Weighted avg cost %

Property assets

RbnDebtRbn

NAV hedge

%Weighted

avg cost %

Net ZAR* 71.3 22.4 31.4% 8.9% 72.8 21.2 29.1% 9.1%

AUD 3.9 2.2 56.4% 3.7% 3.6 1.9 52.0% 4.0%

EUR 10.6 9.9 93.4% 1.6% 15.8 14.0 89.2% 1.7%

GBP** 2.7 4.5 166.7%# 3.0% 2.8 4.1 145.5% 3.0%

USD 0.7 0.4 57.1% 3.9% 0.4 0.6 141.0% 4.5%

Total 89.2 39.4 44.2% 6.1% 95.4 41.8 43.9% 5.8%

Currency Property assetsRbn

DebtRbn

NAV hedge %

EUR 10.6 10.7 101.1%

GBP 2.7 3.2 118.5%

# Post period end, in order to reduce the overexposure to GBP debt, Redefine refinanced it to EUR

debt and settled a portion as follows:


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Analysis of non-recurring income

HY 2020

Rm

HY 2019

Rm

Chariot trading income - 80

Land trading profit 16 23

EPP withholding tax refund - 21

Total 16 124


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Active portfolio expenditure analysis

Rm % change

Half-year ended February 2019 488

Net municipal costs increased due to the completed development on properties costs filtering through 15 15.7%

Net electricity costs decreased through a focus on renewable energy (11) 17.4%

Operating costs increased and as a result of developed properties service warranties coming to an end 23 16.3%

Repairs and maintenance increased due to planned preventative maintenance strategies 4 6.9%

Tenant installations costs are deal driven 4 12.3%

Letting commissions are deal driven 0 1.7%

Management fees remain near flat due to the insourcing of certain property management functions 1 2.1%

Bad debts provided for on a specific basis 22 57.6%

Property admin costs decreased due to cost reduction strategies (15) (10.5%)

Half-year ended February 2020 531 8.8%


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Local active portfolio revenue growth

Active portfolio revenue growth Office Retail Industrial Specialised Total

Active portfolio average rental escalation 7.6% 6.7% 7.5% 9.0% 7.3%

Renewal plus new lets net of expiries -2.5% -2.0% -0.6% 18.5% -1.2%

Growth in rental income 5.1% 4.7% 6.9% 27.5% 6.0%

Growth in other income 0.6% -0.7% 0.6% 3.5% 0.1%

Growth in 2020 property revenue 5.7% 4.0% 7.5% 31.0% 6.2%

Active portfolio NOI growth 6.9% 2.8% 7.6% 23.7% 5.7%

Total vacancy August 2019 % 13.4% 4.8% 1.8% 8.3% 6.0%

Total vacancy February 2020 % 13.6% 5.6% 2.6% 6.3% 6.6%

Vacant properties under refurbishment 1.3% 0.0% 0.5% 0.0% 0.6%

Vacant properties held-for-sale 0.0% 0.0% 0.0% 0.0% 0.0%

Active vacancy February 2020 12.3% 5.6% 2.1% 6.3% 6.0%

Net letting activity post February 2020 0.0% -1.5% 0.0% 1.8% -0.5%

Current vacancy 12.3% 7.1% 2.1% 4.5% 6.5%


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Realising value from sale of non-core assets

Asset description Proceeds Deal progress

Local property assets R2.9 billion Various properties are in the process of disposal at average yield of 9.1%

Journal

(student accommodation in Australia)R3.8 billion Bidding process completed and transaction in legal drafting stage

Cromwell R0.5 billionResidual investment well be sold on open market once released from Journal

development funding encumbrance

Anticipated proceeds R7.2 billion Anticipated to reduce LTV by 4.3%


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International distributable income analysis

UK Europe Australia Africa

Total

internationalR000 RDI EPP Chariot

RDF

Europe Cromwell Journal Other

Oando

Wings

Contractual rental income - - - 200 615 - 94 748 - - 296 363

Investment income - - - - 22 564 - 835 - 23 399

Total revenue - - - 200 615 22 564 94 748 835 - 319 762

Operating costs - - - (69 880) - (28 647) - - (98 527)

Administration costs (176) (453) (4 856) (74 692) (95) (19 753) - (1) (100 026)

Net operating profit (176) (453) (4 856) 57 043 22 469 46 348 835 (1) 121 209

Other gains - - - 1 630 - - - - 1 630

Distributable equity income - - - - - - - - -

Net distributable profit before finance costs and taxation (176) (453) (4 856) 58 673 22 469 46 348 835 (1) 122 839

Net interest costs (62 724) (84 513) 11 663 (27 014) (18 347) (21 552) 3 147 (10 622) (209 962)

- Interest income 37 - 12 611 395 26 336 3 147 - 16 552

- Interest expense (62 761) (84 513) (948) (27 409) (18 373) (21 888) - (10 622) (226 514)

Distributable foreign exchange gain (6 828) 4 222 5 426 3 118 3 161 - - 151 9 250

Net distributable profit before taxation (69 728) (80 744) 12 233 34 777 7 283 24 796 3 982 (10 472) (77 873)

Current and withholding taxation (2 640) - - (5 774) (3 857) (504) (1 071) - (13 847)

Net income from operations before NCI share (72 368) (80 744) 12 233 29 003 3 426 24 291 2 911 (10 472) (91 720)

NCI share of distributable income - - - (2 278) - (2 933) - - (5 211)

Net income before distributable adjustments (72 368) (80 744) 12 233 26 725 3 426 21 358 2 911 (10 472) (96 931)

Below the line distributable income adjustments:

- Transaction costs - - - 48 509 - 4 587 - - 53 096

- Accrual for listed security income - - - - (239) - - - (239)

Distributable income (72 368) (80 744) 12 233 75 234 3 187 25 945 2 911 (10 472) (44 074)


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Income hedging position by currency

56.268.7 72.4 72.8 71.3

16.515.4

18.9 22.6 17.9

18.7 23.6 20.8 21.2 22.4

9.3 11.1 15.7 20.6 17.0

0

20

40

60

80

100

120

Local property assets

Local debt (net of cash)

International property assets

International debt

FY16 FY17 FY18 FY19 HY20

LTV%

RbnAnalysis of property assets and debt

36.5% 41.1% 40.0% 43.9% 44.2%

72.7

28.0

84.1

34.7

91.3

36.5

95.4

41.8

89.2

39.4

2020 2021 2022 2023 2024 2025

EUR

EUR amount (€m) 18.5 24.5 18.0 18.0 12.0 2.5

FEC rate (R: €1) 18.4 19.7 20.9 22.6 23.7 24.6

GBP

GBP amount (£m) 27.4 9.5 3.5 - - -

FEC rate (R: £1) 18.5 20.6 20.7 - - -

AUD

AUD amount (A$m) 2.0 - - - - -

FEC rate (R: A$1) 11.8 - - - - -


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Reconciliation of cash generated to total distributable income

HY 2020R000

Net cash inflow from operating activities (as per statement of cashflows) 2 135 073

Items in cash flow from operating activities, but not related to distributable income 84 306

Working capital changes 31 210

Increase in trade receivables (182 489)

Decrease in trade payables 213 699

Capital transaction costs 53 096

Non-cash flow items included in distributable income (20 217)

Realised foreign exchange gain 9 250

Amortisation of tenant installations and letting commissions (47 845)

Non-cash flow other (10 299)

Depreciation on property, plant and equipment (10 543)

Share incentive schemes – difference between accrual and payment 39 220

Adjustments to distributable income, not included in IFRS statement of profit and loss 15 861

Trading profit (included in P & L but shown under investing activities) 15 861

Timing differences (384 296)

Equity-accounted investments (net of withholding tax) - difference between dividend received and dividend accrual (no dividends accrued in current period) (520 692)

Taxation - difference between income and withholding taxation accrued not yet paid / received 16 620

Listed investment (Cromwell) – difference between dividend received and dividend accrual (293)

Increase in interest income accrual 41 464

Decrease in interest expense accrual 78 605

Non-controlling interest share of distributable income (13 394)

Distributable income for the year 1 817 333


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Reconciliation of property assets

Rm

August 2019 property asset platform 95 434

Deployment of capital 1 853

Disposals (5 907)

Impairments (626)

Fair value adjustments (1 731)

Foreign exchange adjustments 496

Net equity accounted profit (368)

Interest raised 88

Interest settled (47)

February 2020 property asset platform 89 192


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Property portfolio 100.0% R68.5bn

Retail R28.1bn

Office R25.1bn

Industrial R13.7bn

Specialised (excl Respublica) R1.6bn

Respublica 53.4% R1.1bn

Loans receivable and investment in securities*

R1.7bn

R71.3bn

Redefine’s diversified property asset platform

Portfolio valued at R89.2 billion

Direct local property portfolio Direct international properties International listed securities

RDI REIT PLC 29.4% R2.7bn

Cromwell Property Group 2.3% R0.7bn

EPP N.V. 45.4% R8.6bn

R12.0bn

Journal Student Accommodation Fund 90.0% R3.2bn

Oando Wings Development Limited 40.6% R0.7bn

European Logistics platform 46.5% R1.1bn

Chariot Top Group BV 25.0% R0.9bn

R5.9bn

80%

13%

4%3%0%

South Africa

Poland

Australia

UK

Africa

Geographic spread by value

Carried at fair value Equity accounted

*Includes Edcon and Delta

% above represents Redefine's % interest in the asset


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Local retail portfolio

Market

→ Concern in reduction of disposable income and unemployment on sales and footfall

→ Greater focus on value and essentials

→ Entertainment/restaurants will no longer be a key driver of footfall

→ Online shopping will continue to increase due to lockdown

→ Structural change to convenience shopping

→ Vacancy will increase due to retailers downsizing and liquidations

→ Struggling malls will no longer be relevant and possibly shutdown

→ Retail categories in distress – restaurants, cinemas, travel, luxury and entertainment

→ Operating cost increases due to security and cleaning requirements

Activity

→ Disposed of two non-core properties for R445 million

→ Concluded refurbishments at Kenilworth Centre and Sammy Marks

→ Edcon exposure reduced by 12 286m² to 55 583m² at February 2020

→ Negotiation with retailers on rental relief

→ Half year valuations completed

→ Continued negotiations with tenants to right size and secure tenure

Priorities

→ Occupancy/vacancy management through repurposing of premises

→ Tenant retention and early lease renewal of key retailers

→ Conclude rental relief arrangements with tenants

→ Marketing activities to focus on retailer support

→ COVID-19 compliance - Health and safety will be a key issue

→ Further reduction of space with Edcon

→ Continued focus on underperforming assets


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Local office portfolio

Market

→ Vacancies will continue to increase with rentals while escalations remain under pressure

→ Densification of space may no longer be a driver for space requirements

→ Tenant sustainability is a key risk

→ Increased vacancy and reduced rental in P and A grade properties will allow for tenant movement from secondary markets

→ Although co-working accommodation may see short term decline, we expect demand to increase medium term

→ Retention of tenants likely to be driven by rental reductions as cost of relocation may be prohibitive

→ Operational costs will be impacted due to regulatory requirements as a result of COVID-19

Activity

→ No acquisitions during the period and unlikely for the foreseeable future

→ Completed refurbishment of 155 West Street at a cost of R168.5 million with current building occupancy of 60%

→ Disposed of one asset to the value of R92.4 million

→ The portfolio has 74 Green Star rated certifications with a further 26 in process of being certified

→ Continued subdivision of space to focus on smaller tenants in selected properties


Priorities

→ Tenant retention remains our top priority

→ Mitigate increasing vacancy through lease structuring and rental incentives

→ Conclude rental relief arrangements with tenants in lieu of COVID-19

→ Update asset manager strategies

→ Sustainability initiatives such as water efficiency and waste management

→ Focus on additional services and flexibility of occupancy structures

→ Target businesses with growth opportunities


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Local industrial portfolio

Market

→ Market rentals remain flat while municipal tariffs continue to rise

→ Pressure from tenants to sign shorter leases

→ Vacancies are expected to rise particularly in secondary nodes impacted by failing municipal infrastructures

→ Continued threat of Eskom load-shedding

→ Potential increase in local manufacturing could impact space requirements

→ SAA liquidation will impact businesses associated with air cargo in the short / medium term

→ Manufacturers and suppliers to non-essential retailers are negatively impacted by the lockdown

Activity

→ Focusing on aesthetic refurbishment projects to keep older properties relevant

→ S&J spec building completed at a cost of R94.7 million

→ New Massmart DC and the Roche laboratory are under development at a cost of R241.4 million at Brackengate 2

→ Infrastructure development at S&J Industrial Estate, Atlantic Hills and Brackengate 2 are in progress at a cost of R468.5 million


Priorities

→ Tenant retention remains our top priority

→ Mitigate increasing vacancies through lease structuring and rental incentives for tenants

→ Focus on flexible lease structures to enhance offering to smaller users

→ Continued efforts to dispose of non-core assets and land holdings

→ Focus on product differentiation through the acquisition of High-tech industrial and logistics warehousing within key nodes

→ Concluding negotiations with tenant for rent relief as a result of COVID-19


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Local portfolio overview

HY 2020 FY 2019

Description Office Retail Industrial Specialised Total Total

Number of properties 106 72 107 15 300 302

Number of tenants 1 125 3 047 407 12 4 591 4 654

Total GLA (m²) (million) 1.2 1.4 1.8 0.0 4.5 4.5

Vacancy (%) active 12.3 5.6 2.1 6.3 6.0 5.1

Vacancy (%) held-for-sale and development 1.3 0.0 0.5 0.0 0.6 0.9

Vacancy (%) total 13.6 5.6 2.6 6.3 6.6 6.0

Asset value (R billion) 25.1 28.1 13.7 2.7 69.6 71.3

Average property value (R million) 237 390 128 178 232 236

Value as % of portfolio 36.1 40.3 19.7 3.8 100.0 100.0

Average gross rent per m² (R) 170.3 171.4 57.8 201.7 122.7 118.4

Weighted average retention rate by GLA 93.3 95.8 97.1 100.0 95.7 93.3

Weighted average retention rate by GMR 94.1 94.9 96.4 100.0 95.0 92.2

Weighted average renewal growth rate (%) -1.5 -2.5 9.4 0.0 2.2 -2.0

Renewal success rate by GLA (includes monthly leases) 78.7 78.1 77.1 0.0 78.0 73.5

Renewal success rate by GLA (excludes monthly leases) 57.0 52.4 72.5 0.0 60.4 64.8

Weighted average inforce lease escalations by GMR (%) 7.6 6.7 7.5 9.0 7.2 7.3

Weighted average unexpired lease term (remaining) by GMR (years) 3.7 3.1 4.6 1.4 3.6 3.7


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Local portfolio split

DescriptionValuation

(R000)Value

(%)Number of properties

Number of properties (%)

GLA (m²)

GLA (%)

GMR (R000)

GMR (%)

Sector

Office 25 141 795 36% 106 35% 1 237 824 28% 182 084 36%

Retail 28 087 254 40% 72 24% 1 364 501 30% 220 868 43%

Industrial 13 736 208 20% 107 36% 1 829 051 41% 103 040 20%

Specialised 2 662 907 4% 15 5% 29 738 1% 5 620 1%

Grand total 69 628 164 100% 300 100% 4 461 114 100% 511 612 100%

Province

Gauteng 50 837 672 73% 209 70% 3 168 016 71% 369 709 72%

Western Cape 12 037 333 17% 45 15% 651 245 15% 86 616 16%

KwaZulu-Natal 3 093 229 4% 20 7% 286 642 6% 27 085 6%

Other 3 659 928 6% 26 8% 355 221 8% 31 202 6%

Grand total 69 628 164 100% 300 100% 4 461 114 100% 511 612 100%


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Local sectoral split

36%

40%

20%

4%BY VALUE (%)

28%

30%

41%

1%BY GLA (%)

36%

43%

20%

1%BY GMR (%)

35%

24%

36%

5%BY NUMBER OF PROPERTIES (%)

Office

Retail

Industrial

Specialised


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Local geographical split

73%

17%

4%6%

BY VALUE (%)

71%

15%

6%

8%BY GLA (%)

72%17%

5%

6%

BY GMR (%)

70%

15%

7%

8%

BY NUMBER OF PROPERTIES (%)

Gauteng

Western Cape

KwaZulu-Natal

Other


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Local retail sector

37%

35%

16%

6%

6%

BY VALUE (%)

39%

32%

10%

10%

9%BY GLA (%)

5.9%

4.3%

6.7%

7.9%

5.0%

BY ACTIVE VACANCY 5.6%

38%

33%

14%

8%

7%

BY GMR (%)

Community / Small regional

Regional

Super regional

Other

Neighbourhood


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Local office sector

51%

34%

15%

VALUE BY GRADE (%)

76%

22%

1% 1%VALUE BY LOCATION (%)

4.6%

14.7%

19.9%

Premium A Grade Secondary


75%

22%

1%2%

GMR BY LOCATION (%)

Premium

A Grade

Secondary

Gauteng

Western Cape

KwaZulu-Natal

Other


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Local industrial sector

46%

20%

11%

8%

8%

7%1%

BY VALUE (%)

50%

22%

10%

11%

5% 1% 1%BY GLA (%)

2.7%

6.8%


50%

20%

11%

9%

8% 1% 1%

BY GMR (%)

Hi-tech industrial

Industrial units

Warehousing / Logistics

Light manufacturing

Heavy grade industrial

Vacant land

Retail warehouse

Warehousing / Logistics Industrial units


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Local vacancy profile

Office

GLA m²

Retail

GLA m²

Industrial

GLA m²

Specialised

GLA m²

Total

GLA m²

Gauteng 127 063 52 238 25 551 1 875 206 727

Western Cape 26 934 806 19 422 0 47 162

KwaZulu-Natal 1 701 2 822 1 657 0 6 180

Other 13 079 20 029 0 0 33 108

Total 168 777 75 895 46 630 1 875 293 177

Vacancy % 13.6 5.6 2.6 6.3 6.6

Active vacancy, excluding held-for-sale or under development 12.3 5.6 2.1 6.3 6.0

Total GLA 1 237 824 1 364 501 1 829 051 29 738 4 461 114


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Local tenant grading

76%

13%

11%TOTAL (%)

69%

18%

13%

OFFICE (%)

73%

13%

14%RETAIL (%)

81%

11%

8% INDUSTRIAL (%)

Grade A

Grade B

Grade C


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Local lease expiry profile by GMR

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

Monthly 2020 2021 2022 2023 2024 Beyond2024

Vacancy

Thousands

GMR

Total GMR: 511 612 066

Office Retail Industrial Specialised

Office Retail Industrial Specialised Total

Monthly 14 592 876 13 570 683 1 434 240 4 320 29 602 119

2020 11 121 964 14 771 604 3 618 946 27 619 29 540 133

2021 25 844 676 42 442 748 14 495 818 5 473 843 88 257 085

2022 30 549 207 48 869 244 19 023 827 23 053 98 465 331

2023 18 253 034 33 082 087 9 256 767 - 60 591 888

2024 21 304 573 28 333 787 3 682 019 - 53 320 379

Beyond 2024 60 417 679 39 798 153 51 528 149 91 150 151 835 131

Total GMR 182 084 009 220 868 306 103 039 766 5 619 985 511 612 066


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Local lease expiry profile by GLA

0

100

200

300

400

500

600

700

800

900

1 000

Monthly 2020 2021 2022 2023 2024 Beyond2024

Vacancy

Thousands

GLA

Total GLA: 4 461 114 m²

Office Retail Industrial Specialised

Office Retail Industrial Specialised Total

Monthly 106 293 70 848 16 917 6 194 064

2020 70 731 58 480 63 376 87 192 674

2021 149 624 209 282 227 625 27 159 613 690

2022 186 192 257 628 289 772 81 733 673

2023 124 948 188 697 167 916 - 481 561

2024 131 649 191 615 65 711 - 388 975

Beyond 2024 299 610 312 056 951 104 530 1 563 300

Vacancy 168 777 75 895 46 630 1 875 293 177

Total GLA 1 237 824 1 364 501 1 829 050 29 738 4 461 114


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Local top 10 properties and tenants of total portfolio

Property Region

Value

(R000) GLA m² Tenant GLA m² GMR (R)

Centurion Mall Gauteng 4 516 923 119 066 MacSteel 554 987 28 684 408

Alice Lane Gauteng 3 253 800 77 491 Pepkor 223 677 22 658 245

115 West Street Gauteng 1 693 000 41 091 Government 178 321 24 982 645

Blue Route Mall Western Cape 1 687 100 56 145 Shoprite 138 090 13 808 609

Black River Western Cape 1 605 000 71 560 Pick n Pay 102 049 10 487 157

Kenilworth Centre Western Cape 1 495 300 53 433 Woolworths 98 070 8 942 817

East Rand Mall (50% share) Gauteng 1 464 000 34 180 Massmart 88 018 9 515 151

Golden Walk Gauteng 1 411 400 45 208 Edcon 82 357 10 121 713

90 Rivonia Road Gauteng 1 153 000 39 964 Hirt and Carter (SA) 47 718 4 444 253

Stoneridge Centre Gauteng 1 145 757 67 891 Standard Bank 46 805 9 984 845

Total top 10 properties 19 425 280 606 029 Total top 10 tenants 1 560 092 143 629 843

Balance of portfolio 50 202 884 3 855 085 Balance of portfolio 2 901 022 367 982 223

Total portfolio* 69 628 164 4 461 114 Total portfolio 4 461 114 511 612 066

% of total portfolio 27.9% 13.6% % of total portfolio 35.0% 28.1%

* Total portfolio value and GLA (m²) includes properties as presented in the local undeveloped land page

Also included in the portfolio value is the IFRS 16 value of the right-of-use.asset and properties classified as property, plant and equipment


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Local top 10 retail properties

Property Region

Value


Centurion Mall Gauteng 4 516 923 119 067 Shoprite 107 942 12 129 256

Blue Route Mall Gauteng 1 687 100 56 145 Pick n Pay 102 049 10 487 157

Kenilworth Centre Western Cape 1 495 300 53 433 Woolworths 70 459 5 649 946

East Rand Mall (50% share) Gauteng 1 464 000 34 180 Edcon 58 937 8 807 056

Golden Walk Gauteng 1 411 400 45 208 Pepkor 58 578 11 623 613

Stoneridge Centre Gauteng 1 145 757 67 891 Massmart 55 663 7 302 708

Centurion Lifestyle Centre Gauteng 1 143 200 62 297 Mr Price 45 671 9 407 061

Matlosana Mall North West 1 061 100 65 000 Foschini 42 673 11 040 569

The Boulders Shopping Centre Gauteng 987 567 48 310 Adeo (SA) 33 580 4 041 568

Maponya Mall (51% share) Gauteng 937 584 36 453 Virgin Active (SA) 30 617 5 311 173

Total top 10 properties 15 849 931 587 984 Total top 10 tenants 606 169 85 800 107

Balance of portfolio 12 237 323 776 517 Balance of portfolio 758 332 135 068 200






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Local top 10 office properties

Property Region

Value


Alice Lane Gauteng 3 253 800 77 491 Government 126 237 17 692 430

115 West Street Gauteng 1 693 000 41 091 Alexander Forbes 44 611 12 443 717

Black River Western Cape 1 605 000 71 560 Standard Bank 38 726 7 532 841

90 Rivonia Road Gauteng 1 153 000 39 964 Sanlam 35 049 6 824 570

The Towers Western Cape 1 120 000 59 372 Webber Wentzel 34 883 6 443 259

Wembley Office Park Western Cape 789 100 33 626 Bowman Gilfillan 29 957 7 437 111

Rosebank Link Gauteng 744 320 21 756 Wework (SA) 24 453 3 105 083

Boulevard Office Park Western Cape 725 100 31 533 Amazon Development Centre (SA) 20 130 3 645 066

90 Grayston Drive Gauteng 567 400 19 894 Murray & Roberts 19 309 2 237 146

Riverside Office Park Gauteng 562 700 27 284 Nedbank 18 834 3 781 589


Balance of portfolio 12 928 375 814 253 Balance of portfolio 845 635 110 941 197






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Local top 10 industrial properties

Property Region

Value


Pepkor Isando Gauteng 906 200 107 017 MacSteel 554 987 28 684 408

Macsteel Lilianton Boksburg Gauteng 694 700 73 071 Pepkor 165 099 11 034 632

Hirt & Carter Cornubia KwaZulu-Natal 591 920 47 718 Hirt and Carter (SA) 47 718 4 444 253

Macsteel Coil Processing Wadeville Gauteng 407 800 52 886 Isuzu Motors (SA) 38 515 2 077 685

Macsteel VRN Roodekop Gauteng 385 200 57 645 Kintetsu World Express (SA) 35 358 2 123 317

Macsteel Tube & Pipe Usufruct Gauteng 369 100 68 822 Massmart 32 355 2 212 443

Cato Ridge DC KwaZulu-Natal 366 200 50 317 Shoprite 30 148 1 679 352

Macsteel Trading Germiston South Gauteng 332 900 56 495 Robertson & Caine 25 295 1 261 825

Wingfield Park Gauteng 290 200 56 486 Coricraft Group 24 253 1 092 715

GM - COEGA Eastern Cape 267 200 38 515 Government 23 805 2 259 509


Balance of portfolio 9 124 788 1 220 079 Balance of portfolio 851 518 46 169 627






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Local undeveloped land

Property Region

Value

(R000)

S & J Industrial (90% share) Gauteng 725 430

Brackengate 2 Mainland Western Cape 258 011

Galleria (90% share) Gauteng 190 260

Atlantic Hills (55% share) Western Cape 160 759

Cornubia Ptn 18 KwaZulu-Natal 52 291

BGM 5 - Mass Mart (50.1% share) Western Cape 41 733

Boulevard Annex Western Cape 39 728

Golf Air Park III Western Cape 27 300

Masingita Mall (40% share) Gauteng 24 103

Wonderboom Junction Phase 2 Gauteng 24 047

Total undeveloped land 1 543 662

Balance of undeveloped land 31 758

Total undeveloped land 1 575 420

% of total undeveloped land 98.0%


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Local specialised properties

Property Region

Value

(R000) GLA m²

Bedford Gardens Hospital Gauteng 361 000 12 817

Southern Sun OR Tambo International Airport Gauteng 22 820 14 153

Total specialised properties 383 820 26 970

Balance of portfolio 2 279 087 2 768

Total specialised portfolio* 2 662 907 29 738

% of total specialised portfolio 14.4% 90.7%

*Total portfolio value and GLA (m²) includes properties presented in the student accommodation page as well as properties classified and property, plant and equipment and properties held for trading


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* As at 29 February 2020, the student accommodation portfolio had an average occupancy rate of 96.7% (FY19 83.7%)

** Held for future development applied to 55 Empire Road

Local student accommodation

Property Region

Value

(R000) Beds

Hatfield Square Gauteng 681 764 2 331

Princeton House Gauteng 393 010 1 846

Roscommon House Western Cape 232 292 582

Saratoga Village Gauteng 210 937 1 077

West City Gauteng 139 790 1 134

Yale Village Gauteng 110 944 330

Lincoln House Free State 103 550 469

Urban Nest Gauteng 58 800 300

The Fields Gauteng 55 160 308

55 Empire Road** Gauteng 41 125 0

Paton House KwaZulu-Natal 13 768 0

Total* 2 041 140 8 377


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* Land sales do not have GLA or yields

** The proceeds on disposal of the UK assets are based on an exchange rate of R18.6/GBP. The proceeds on disposal of the Polish assets are based on an exchange rate of R16.3/EUR

Disposals – Investment property

Property Province

Date

of transfer GLA (m²)

Proceeds

(R000) Yield (%)

Retail 35 986 445 307 10.8

Ermelo Mall Other 29-Nov-19 19 501 253 441 10.8

Alberton Mall Gauteng 29-Nov-19 16 485 191 866 10.8

Office 11 082 92 382 -

22 Fredman Drive Gauteng 19-Dec-19 11 082 92 382 -

Land* - 67 001 -

Wilgespruit (Ext 62) Gauteng 25-Sep-19 - 6 000 -

Centurion Land Gauteng 13-Nov-19 - 11 769 -

Mainland Phase 2 Western Cape 19-Dec-19 - 1 037 -

S&J Land (90%) Gauteng 27-Nov-19 - 48 195 -

International** 731 134 6 705 929 6.9

UK townhouses UK 20-Dec-19 - 10 093 -

Stryków Poland 31-Jan-20 77 659 801 960 6.1

European Logistics Investment B.V. Poland 29-Feb-20 653 475 5 893 876 7.0

Grand total 778 202 7 310 619 7.1


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Disposals – Held for trading

Property Province

Date

of transfer

Proceeds

(R000)

Specialised 46 806

Park Central Gauteng Various 46 806

Land 55 050

Stikland Western Cape Various 2 914

Erf, Atlantic Hills (55% share) Western Cape Various 52 136

Grand total 101 856


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* Purchase price includes the cost of land and relates to 100% of the cost. Numbers as shown relate to Redefine's share in the joint ventures. Redefine's share is 47.5% of this cost

The purchase prices of the Polish assets are based on an exchange rate of R16.3/EUR

Acquisitions

Property Country Sector

Date

of transfer GLA (m²)

Purchase price

(R000) Yield (%)

International

Toruń* Poland Land 23-Sep-19 16 902 25 068 6.6

Ruda* Poland Land 23-Sep-19 32 949 28 636 6.6

Grand total 49 851 53 704 6.6


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* Land sales do not have GLA or yields

Non-current assets held for sale

Property Province Sector GLA (m²)

Proceeds

(R000) Yield (%)

Industrial 7 590 31 604 9.8

6 Kruger Gauteng Industrial 7 590 31 604 9.8

Land* - 42 000 -

Kyalami Ridge land Gauteng Land - 42 000 -

Oando Wings - 402 518 -

Non-current assets held for sale - 669 847 -

Non-current liabilities held for sale - (267 329) -

7 590 476 122 9.8


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Local new developments completed

Property Province GLA (m²)

Development

cost (R000)

Initial yield

(%)

Completion

date

Industrial* 18 568 94 656 9.3

S & J -Spec Jupiter (90% share) Western Cape 18 568 94 656 9.3 Oct-19

94 656 9.3

* Development cost exclude the cost of land


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Local current new developments in progress

Property Province GLA (m²)

Projected dev.

cost (R000)

Initial yield

(%)

Projected

completion date

Still to spend

(R000)

Industrial* 52 313 241 351 9.4 205 586

Brackengate MassMart (50.1% share) Western Cape 52 313 168 326 9.3 Oct-20 133 141

Roche at Brackengate 2 (50.1% share) Western Cape - 73 025 9.5 Nov-20 72 445

Retail* 267 5 500 11.0 4 948

Ottery Burger King DT Western Cape 267 5 500 11.0 May-20 4 948

Grand total 52 580 246 851 9.4 210 534



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Local refurbishments

Refurbishments completed Province

Refurbishment cost

(R000) Completion date

Office 207 976

155 West* Gauteng 168 461 Oct-19

Knowledge Park* Western Cape 39 515 Dec-19

Retail 47 500

Sammy Marks Phase 3* Gauteng 15 423 Mar-20

Kenilworth Centre* Western Cape 32 077 Feb-20

255 476

Refurbishments in progress Province

Projected

cost (R000)

Projected

completion date

Still to spend

(R000)

Office

Black River Park* Western Cape 2 014 Jun-20 2 014

Towers Phase 1* Western Cape 27 137 Jun-20 25 422

29 151 27 436

* Refurbishment costs exclude the cost of land


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Local new developments/refurbishments

Local new developments future committed pipeline Province GLA (m²)Projected cost

(R000)

Initial yield

(%)Projected start date

Industrial* 20 651 122 952 9.2

Sparepro S & J (90% share) Gauteng 20 651 109 452 9.2 Apr-20

Infrastructure ext 28 Gauteng - 13 500 - Apr-20

Retail* 10 059 172 580 10.0

Little Falls Phase 2 Gauteng 10 059 172 580 10.0 Nov-20

Local new refurbishments future committed pipeline ProvinceProjected cost

(R000)

Initial yield


Retail* 170 108 8.8

Centurion Lifestyle Centre Gauteng 68 146 3.0 Apr-20

Kyalami Corner Dis-Chem extension Gauteng 21 533 - May-20

Centurion Mall food experience Gauteng 80 429 13.8 Aug-20

Industrial* 10 156 -

Wingfield Park upgrades Gauteng 10 156 - May-20

Province

Number

of bedsProjected cost

(R000)

Initial yield


Student accommodation* 53 550 10.6

Paton House Kwazulu-Natal 538 53 550 10.6 Oct-20

Province

Number

of bedsProjected cost

(R000)

Initial yield


Student accommodation 73 955 9.7

Yale Village Phase 2* Gauteng 196 28 855 8.9 Jul-20

55 Empire Road* Gauteng 462 45 100 10.2 Feb-21* Development cost exclude the cost of land


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Local infrastructure projects

Infrastructure projects completed ProvinceTotal dev. cost

(R000) Completion date

Industrial

S & J Phase 2 (90% share)* Gauteng 18 974 Dec-19

Grand total 18 974

Infrastructure projects in progress ProvinceTotal dev. cost

(R000)Expected

completion dateStill to spend

(R000)

Industrial*

S & J Phase 1 (90% share) Gauteng 135 576 May-20 31 500

Brackengate (50.1% share) Western Cape 178 962 Jun-20 5 375

Atlantic Hills (55% share) Western Cape 153 943 Apr-20 53 375

Grand total 468 481 90 250



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United Kingdom

Redefine’s interests → RDI REIT 29.4%

Platform profile → 28% exposure to retail, 24% to offices, 28% to hotels and 19% to industrial assets

Carrying value → R2.7 billion

See through value of assets → R8.3 billion

See through LTV → 110.1% (2019 : 109.5%)

Redefine activity in firsthalf of 2020

→ Following the large drop in the RDI share price, several opportunistic approaches have been received

→ While the share price is at a deep discount to NAV, it is unlikely that any realistic offers will be made

→ The focus will now shift to securing the future before any further approaches or strategic options are entertained

Redefine’s strategy → Some options may require Redefine to remain invested in the medium-term without committing further equity to RDI or a

sale of the stake

→ Options, if realistic and capable of conclusion, will be considered for Redefine to realise value

→ Funding arrangements put in place to allow for EUR117.2 million exchangeable bond early redemption


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Australia

Redefine’s interests → Journal 90%

→ Cromwell 2.3%

Platform profile → 12% exposure to offices, 6% to retail assets and 82% to student accommodation



See through LTV → 63.3% (2019: 29.8%)


→ A competitive bidding process run by JLL, which drew strong response, has concluded

→ Final negotiations on the disposal of the Australian student accommodation portfolio are underway

→ Conclusion of the sale agreement is anticipated by June

Redefine’s strategy → Establish Uni Place as the premier student accommodation facility in Melbourne

→ Central development to be completed by mid-June

→ Disposal of Journal would release remaining Cromwell units for disposal

→ The disposals will greatly support our strategic priority to strengthen our balance sheet


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Australia | continued

Impact of COVID-19 → The government has now closed the borders to all inbound travel

→ The universities are physically closed but facilitating on-line learning. In light of the significant change in circumstances

some students have not been able to arrive in Australia while others have sought to return home

Key operational highlights Uni Place semester one

→ Due to the aforementioned travel ban and changes in university operating settings occupancy has dropped

→ Taking into account non arrivals and processed cancelations/deferrals, we are currently projecting revenue equivalent to

75% occupancy for semester one, which is partly elevated by 12 month bookings from calendar year 2019 running into

calendar year 2020

Central semester two

→ The unknown duration of the travel ban means that leasing for semester two will be extremely challenging

→ The current strategy is to direct the limited inquiry toward Uni Place, on the grounds of mitigating costs, by not opening a

second building (reducing staff, utility etc)

→ In the event that onshore demand for Uni Place exceeds supply, bookings for Central will be opened

Development → The construction of Central is due to be completed by mid-June as long as there is no shutdown of building sites. The

project cost is A$110.0 million, with costs to complete of A$20.7 million


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Poland

Redefine’s interests → EPP 45.4%

→ Chariot Top Group 25%

→ European Logistics 46.5%

Platform profile → 81% exposure to retail, 9% to office and 10% logistics assets



See through LTV → 93.2% (2019 : 89.4%)


EPP

→ No change in Redefine’s shareholding in EPP is anticipated in the medium term

European Logistics

→ On 23 December 2019, Redefine entered into a share sale agreement with Madison and Griffin for the disposal of a 46.5%

and 2% interest respectively in the Polish logistics portfolio held through European Logistics Investment B.V (“ELI”)

→ Before the sale, Redefine Europe B.V (“Redefine Europe”), a wholly owned subsidiary of Redefine, held 95% and Griffin 5%

of the shares in ELI

→ In terms of the agreement, Madison and Griffin agreed to a total equity commitment of EUR150.0 million and

EUR13.4 million respectively over the next five years

→ Following the conclusion of the transaction, Redefine holds a 46.5% equity interest in ELI

→ Net after the settlement of the purchase price (comprising equity and an earn out applicable to developments in progress),

Madison’s equity commitment is EUR66.3 million with Griffin’s commitment at EUR4.9 million

→ Redefine agreed to match the equity commitment of Madison and will reinvest EUR66.3 million in the platform funded from

the proceeds of the sale of 48.5% of ELI

→ With the exclusivity arrangement with Panattoni still in place, the equity will be invested in new development projects across

Poland

→ Cash flow for the transaction occurred 11 March 2020


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Poland | continued

Redefine’s strategy EPP

→ The focus in the short term is for EPP is to get through the crisis period with enough liquidity to maintain operational

functionality

→ Medium term focus is to continue with optimising asset management opportunities within the portfolio as well as de-

leveraging the company to a LTV level below 45%

→ Redefine as a significant shareholder will continue to provide strategic support to the EPP management team

Chariot Top Group

→ The trading opportunity will be unwound as and when deal flow resumes in the Polish market

European Logistics

The focus for the immediate future, apart from dealing with the current crisis will be to:

→ Complete the developments in progress in order to receive the earn out fee from Madison

→ Complete the developments currently under construction as well as let the vacancies

→ Secure pre letting on current land holdings for further expansion

→ Continue identifying market opportunities to invest and grow the logistics portfolio in Poland through development activity

Market Overview

European Logistics

→ For the 2019 calendar year, the demand for logistic space in Poland, for the third consecutive year, reached nearly

4.0 million m², of which 67% came from new business

→ Poland's five main logistics hubs accounted for 80% of the total demand

→ The highest lease activity occurred in the Warsaw region (1.3 million m²), followed by Upper Silesia (600 000m²) and then

Central Poland and Wroclaw (590 000m² each)

→ Despite the COVID-19 outbreak, threatening the disruption of global supply chains and business operations, the logistics

industry is maintaining a generally positive outlook

→ Logistics is expected to prove more resilient than other real estate classes in the longer term

→ A positive demand for space will be generated through rising inventory levels and the acceleration of e-commerce


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Poland | continued

European Logistics

Impact of COVID-19 on

operations

→ To contain the spread of the COVID-19 virus, the Polish government published a decree in March 2020, declaring a nationwide state of epidemy

→ Pursuant to the decree, business activity has been restricted and any retail trade, except for those that sell groceries, toiletries, medical supplies and services has been prohibited

→ The decree does not enforce any closure of logistics parks, offices or warehouses and tenants retain access to their premises→ Most logistics tenants are still operational→ Tenants negatively impacted by the decree, who have decided to close their operations, are mainly suppliers to non-essential

retailers (i.e. furniture) and industries related to automotive manufacturing→ These closures are voluntary and each request for relief is dealt with on a case-by-case basis→ On 29 April a phased plan to open the economy from 4 May was released

Key operational highlights → Conclusion of 48.5% share sale to Madison and Griffin→ Completion of Strykow sale→ Reduction in vacancy to 9.9%→ Completion of Warsaw Logistics development (25 510m² GLA)→ Approval of three new developments (90 110m² GLA)→ New land acquisition in Czeladz approved in February 2020 and sale was executed in March 2020→ Limited negative impact on cash flow from COVID-19 to date→ As at 29 February 2020, the total GLA for the operational portfolio, was 392 384m² (444 114m² at 31 August 2019)→ The reduction in the GLA is the result of the Strykow sale in January 2020→ The vacancy in the operational portfolio decreased from 71 025m² (16.5%) as at 31 August 2019 to 38 839m² (9.9%) as at 29

February 2020 mainly due to the disposal of the Strykow building with 22 213m² vacant and the letting to NVH (16 235m²) in Bielsko

→ The largest vacancy in the portfolio is 12 566m² at Lodz Business Center II and III where Brand BQ vacated in October 2019→ During the period, good leasing activity was recorded with 18 805m² of lease renewals at an average rent of EUR3.86 per m²

and 18 629m² of new lettings at an average rent of EUR3.78 per m²→ No rental growth was recorded on lease renewals and new lettings→ Included in the operational portfolio is the first phase of Warsaw Logistics (25 510m² GLA) which was completed in the first

quarter of FY2020 and is fully let→ The development cost is EUR13.6 million with an initial yield of 6.8%


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European Logistics

Acquisitions → In March 2020, concluded the acquisition of 8.7ha of well-located, undeveloped land in Czeladz, located in the Upper Silesia region (the second largest industrial market in Poland), for an amount of EUR3.4 million

→ The multi-phase development of logistic warehousing will have a total GLA of 36 511m²→ Phase 1 of the development will consist of approximately 9 200m² GLA→ The land is still to be transferred and the development of the warehouses will only start once letting targets are met

Developments Under construction→ As at 29 February 2020, Torun (16 902m² and 67% let) and the small building at Opole (9 074m² and 88% let) are

substantially complete→ Other projects still under construction, are the second phase of Warsaw Logistics (47 961m²) and the larger building at

Opole (15 261m²) → The projects, with a total development cost (including land) of EUR73.7 million, are expected to yield an initial return of 6.6%

and are on program for completion in FY 2020→ The second phase of the Warsaw Logistics is also fully let, which is indicative of the strong letting market in Warsaw→ To date, no tenant has been secured for the second building at Opole

New development projects→ In March 2020, three new projects approved - all being developed on existing landholdings→ The projects, all started in March 2020, are:

Disposals → The sale of Strykow was concluded on 31 January 2020→ Redefine (95%) and Griffin (5%) retained the right to develop the last phase of the Strykow development (22 300m²) over

the next two years→ The rental guarantee, provided by Redefine Europe and Griffin on the vacant space, is for a maximum period of two years

and can reduce over time with new lettings

Project

GLA

(m²)

Dev cost

(EUR ’000) Yield Pre-letting

Anticipated

completion date

Bielsko Biala 2 44 148 29 208 7.3% 40.4% Jul/Aug 2020

Ruda Slaska 1 32 949 17 967 6.2% 63.6% July 2020

Gdansk 1 13 013 7 372 6.3% 27.4% July 2020

Total 90 110 54 547


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International new developments

Completed during the year Country GLA (m²)Development

cost (EUR’m)

Development

cost (Rm)Initial yield (%)

Industrial

Warszawa Phase II Poland 25 510 13.6 220.5 6.8

25 510 13.6 220.5 6.8

In progress Country GLA (m²)Development

cost (EUR’m)

Development

cost (Rm)

Initial yield

(%)

Completion

date

Still to spend

(EUR’m)

Still to spend

(Rm)

IndustrialWarszawa Phase I Poland 47 961 31.5 541.5 6.5 Sep-20 4.9 84.5

Opole Phase I Poland 24 335 18.4 316.8 6.8 Oct-20 1.9 33.0

Torun Building B Poland 16 902 12.4 213.2 6.6 Mar-20 1.6 28.2

89 198 62.3 1 071.5 6.6 8.4 145.7

CountryNumber

of beds

Development

cost (AUD’m)

Development

cost (Rm)

Initial yield

(%)

Completion

date

Still to spend

(AUD’m)

Still to spend

(Rm)


Swanston Street Australia 587 110.0 1 121.0 9.2 Jun-20 20.7 210.7

Future committed

timelineCountry

GLA

(m²)

Development

cost (EUR’m)

Development

cost (Rm)

Initial yield

(%)

Completion

date

Still to spend

(EUR’m)

Still to spend

(Rm)

Industrial

Gdańsk Phase II Poland 13 013 7.4 127.2 6.3 Jul-20 7.4 127.2

Ruda Ślaska Phase I Poland 32 949 18.0 308.9 6.2 Jul-20 18.0 308.9

Bielsko-Biała Phase II Poland 44 148 29.2 502.1 7.3 Jul-20 22.7 390.4

90 110 54.6 938.2 6.6 48.1 826.5


Disclaimer

This presentation may include forward-looking statements which statements are not based on historical information, but rather premised on certain assumptions, risks, estimates

and/or uncertainties (“risks and uncertainties”), which are taken into consideration as at date of this presentation. All figures presented are as at 29 February 2020.

Should these risks and uncertainties prove inaccurate, or should unknown risks and uncertainties affecting Redefine’s business materialise, the actual results may differ materially

from Redefine’s expectations. As a result of risks and uncertainties falling outside of our control, Redefine is not able to guarantee that any forward-looking statements will

materialise. Attendees are accordingly cautioned in this regard and in respect of reliance placed on forward-looking statements as predictors of future events.

Redefine assumes no obligation and disclaims any intention to update or revise any forward-looking statements (even in the event of new information or change in risks and

uncertainties), save to the extent required by the JSE.

Redefine Group results for the six months ended 29 February 2020 1 · Redefine Group results for...

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