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ANNUAL RESULTS

for the year ended 31 March 2020

1ACCELERATE PROPERTY FUND ANNUAL RESULTS 2020 1ACCELERATE PROPERTY FUND ANNUAL RESULTS 2020

CONTENTS

INTRODUCTION 2

STRATEGY UPDATE 4

KEY PRIORITIES 8

COVID-19 10

STRENGTHEN BALANCE SHEET 14

AT A GLANCE 19

FINANCIAL RESULTS 21

KEY INDICATORS 25

CAPITAL AND TREASURY MANAGEMENT 29

FOURWAYS MALL 32

PORTFOLIO UPDATE 37

EUROPEAN RETAIL 40

CORPORATE GOVERNANCE AND ORTHOTOUCH 43

SUMMARY 45

2

INTRODUCTION

3ACCELERATE PROPERTY FUND ANNUAL RESULTS 2020

INTRODUCTION

• SA economy was already on downward trajectory pre COVID-19

• COVID-19 has accelerated this trajectory as well as change in:

– how we work

– how we socially interact

– how our tenants and their customers will do business

• Extensive additional scenario planning and modelling undertaken in this regard

• Accelerate was already ahead of the change curve in terms of shoppertainment and its nodal approach to property

• Focus is now on solvency and liquidity rather than dividend growth

• We further continue to focus on stakeholder relationships

– Debt providers

– Equity providers

– Tenants and their customers

– Our people

4

STRATEGY UPDATE


STRATEGIC SHIFT TOWARDS A NODAL STRATEGY

STRATEGY STATEMENT

Building cities of the future, by focusing on property fundamentals within specifically identified nodes.

Accelerate’s portfolio strategy has historically been driven by retail bias, underpinned by a targeted revenue spit of 70-15-15 between retail, office and industrial.

Through major acquisitions, such as Portside, the KPMG portfolio and Eden Meander Accelerate was able to create value and growth, however, these acquisitions did not follow the targeted 70-15-15 split.

The retail bias strategy displayed growth in the fund, however, we believe that it is time to lead with a strategy that is better suited to the current economic climate and risks. This has led to the development of a revised nodal strategy that is underpinned by properties with superior property fundamentals and balanced with geographic diversification.

Nodes are identified based on transportation routes, future growth and densification potential. We buy, develop or redevelop in these strategic nodes, allowing us to attract a diversified high-quality tenant mix and maximise value.

RETAIL FOCUS

Traditional thinking for large retail centres has to change. APF is comfortable with it’s retail exposure. Pre-COVID-19, management was spearheading the drive toward shoppertainment, taking learnings from offshore jurisdictions.

COVID-19 will necessitate an enhanced focus on health and safety, but the shoppertainment strategy still holds true especially for big super-regionals to differentiate themselves.

COVID-19 has also resulted in smaller shopping centres coming into their own due to proximity to home and ease of access.


OUR APPROACH

Our approach to sustainable business includes selecting the locations of our properties based on the resilience of the areas surrounding them. Through active Asset Management, we concentrate our investment in these critical nodes to extract and enhance value on a much greater scale.

WHY NODAL?

The benefits we have identified to adopting a purely nodal strategy include:

• Diversification in property types through investing in all property types

• Proximity to assets enables economies of scale and the ability to strategically place tenants

• Focus on nodes with strongest LSMs and catchment areas

THE NODES WE CURRENTLY CHOOSE TO PARTICIPATE IN, IN SOUTH AFRICA ARE:

Fourways, Gauteng Lies on northern outskirts of Johannesburg along key transport routes close to Lanseria airport. Considerable growth in residential dwellings over the last five years, which has increased demand for retail and office space.• Properties in node: Fourways Mall, Cedar Square, Valleyview, Mazda Fourways,

Ford Fourways, BMW Fourways, The Buzz and Waterford shopping centres and Leaping Frog ‒ Gross lettable area (GLA): 175 451 m2

Foreshore, Western CapeSituated between Cape Town City Centre and the Port. The Cape Town central business district remains extremely resilient as a premier, global residential and business destination.• Properties in node: Portside, Oceana House, Thomas Pattullo, 73, 89, 99-101

Hertzog boulevard and Bytes.‒ GLA: 52 152 m2

Charles Crescent, Gauteng Conveniently located near the M1/N3 highway and Sandton, and close to the Sandton and Marlboro Gautrain stations.• Properties in node: 1,9 & 10 Charles Crescent, 185 Catherine street,

MB Technologies and Brooklyn place ‒ GLA: 47 692 m2

George, Western Cape The acquisition of the Eden Meander Lifestyle Centre has allowed Accelerate to create another strategic node within the Western Cape.• Properties in node: Eden Meander Lifestyle Centre, Site A

‒ GLA: 29 840 m2

KEY IDENTIFIED STRATEGIC NODES


OUR OFFSHORE STRATEGY

A proven resilient strategy in any economic climate

Accelerate Property Fund Europe (APFE) was established in 2016 to acquire or develop commercial real estate in Central and Eastern Europe. The offshore strategy to target commercial real estate is underpinned by:

• Single-tenanted premises

• Triple net leases

• Letting to financially strong blue-chip multi-national or large regional tenants

• Euro-denominated income with consumer price indexation (CPI)

• Minimum 10 years’ unexpired lease terms

• An on the ground offshore executive management team

Under the single-tenant and long-term lease strategy, Accelerate, through APFE, established its European real estate platform with the acquisition of an OBI portfolio across both Austria and Slovakia, with 41 202 m2 and 24 691 m2 GLA respectively.

Under this strategy, acquisitions can include income-producing high-quality retail, office and industrial properties and APFE will seek exposure to different tenants to mitigate risk and balance the investments made to hold for the long term and for the purpose of optimising sustainable income.

The single-tenant and long-term lease strategy provides security for Accelerate which allows the properties to generate positive returns in the normal course of business while being less exposed to the effects of negative downturns.

8

KEY PRIORITIES


RESPONDING TO COVID-19

• Supporting our tenants

• Safety of tenants, shoppers and our people

• Focused marketing

• Ensure liquidity

• Strengthening balance sheet

PORTFOLIO OPTIMISATION

• Reduce leverage

• Reinvest in core portfolio

• Sale of non-core properties (R 845 million of sales done since Sept 2018)

• In-house developments

• Manage swap and debt maturity profile

• Development of bulk owned

POST COVID-19 STRATEGY

• Rebalancing tenant mix

• Safe and comfortable shopping experience

• Differentiate from other super-regional offerings

• Innovation and repurposing affected spaces

• Strategic capex spend

• Tenant retention

GREEN INITIATIVES

• Major solar investment

• Water savings

• Reducing carbon footprint

SOCIAL INVESTMENT

• Bursaries, community outreach initiatives, school funding

KEY PRIORITIES

10

COVID-19


The fund is and has been in ongoing negotiations with tenants in order to not only assist our tenants during this difficult time, but also to ensure the long-term sustainability of the fund as well as our tenants. The process followed is as follows:

• The Property Industry Group and SA REIT Association negotiations with the various tenant groups were taken into account

• The optimal tenant mix for each building was examined in light of COVID-19

• Thereafter negotiations with tenants were undertaken taking into account their financial position and liquidity

• The principle adopted was to assist smaller tenants with minimal balance sheet capacity to a larger extent

The financial impact post year-end on the funds South African assets is as follows, based on the current status of negotiations:

*Subject to change.

Rental assistance to tenants expected to exceed R 100 million.

For the European retail portfolio OBI paid 50% of rental during the lockdown period (16 March to 13 April 2020 for Austria and 16 March to 5 May 2020 for Slovakia). All stores are now open, fully trading and OBI is paying rental in full.

RENTAL COLLECTION PERCENTAGES (based on full rental billed):

• April 2020: 61%

• May 2020: 49%

• June 2020: 61%

TENANT ASSISTANCE AND FINANCIAL IMPACT

Month Rentals to be paid* Rental deferment*

April 2020 44,5% 6,1%

May 2020 54,3% 7,7%

June 2020 78,4% 7,4%


COVID-19 SAFETY ACTION

Accelerate is committed to providing a safe and hygienic environment for our shoppers, tenants and employees. The fund has implemented safety measures in line with the Adjusted Risk Management Schedule as set out by government, including:

• Increased frequency of daily sanitising in common areas

• Branded social distancing floor markers outside all major retailers, ATMs and restroom entrances

• The implementation of mandatory mask wearing restrictions

• Informational and supportive messagingposted on multiple platforms and via the digital media channels

• Implementation of voluntary temperature screening

• Hands-free sanitising stations positioned throughout

• Partnership with Dis-Chem pharmacies with the hosting of a COVID-19 testing station


COVID-19 SAFETY ACTION CONTINUED

14

STRENGTHEN BALANCE SHEET


PROPERTY SALES TO DATE

The following properties were sold by the fund since the commencement of the balance sheet optimisation process FY2019:

R 845 million of sales completed to date

Property Sector Sales price Value held in APF books % discount

Eshowe Mall Retail 60 000 000 56 473 667

Highway Gardens Office 27 000 000 27 000 000

Traigle House Office 53 333 333 47 800 000

Wilrogate and Wilropark Retail 94 000 000 114 075 301

East Lynne Retail 34 000 000 50 000 000

Flora Park Office 78 000 000 78 000 000

Glen Gables Office 40 000 000 55 300 000

Kyalami Downs Retail 99 500 000 100 000 000

The Pines and Mr Price Retail 120 000 000 111 500 000

Wanooka Place Office 240 000 000 240 000 000

845 833 333 880 148 968 4%


LTV AND ICR BUILD UP – CURRENT VALUATIONS AND RENTAL LEVELS

LTV at 31 March 2020

(based on current

contractual rental levels)

Post disposal of

current sales

pipelinePortfolio 2

salePortfolio 3

sale

Post potential Sept 2020 distribution

withheld

Post potential March 2021 distribution

withheld

LTV effect of potential sale

of offshore portfolio

LTV - SPV 1 43,0% 40,2% 38,2% 37,3% 36,4% 33,8% 26,45%

ICR - SPV 1 2,2x 2,4x 2,57x 2,63x 2,71x 3,0x 3,3x

LTV - overall (including offshore)#

45,5% 42,7% 40,2% 39,2% 38,5% 37,0% 25,9%

ICR - overall 2,1x 2,3x 2,4x 2,5x 2,55x 2,7x 3,1x

Expected timing to completion from 1 Aug 2020

3/6 months 6/9 months 9/18 months

# Takes into account cash balances at 31 March 2020 as well as vendor loan receivables

TARGETS:• Long term fund LTV of 40%• ICR of greater than 2,0x

REIT STATUS:• For the 31 March 2020 financial year APF is fully REIT status

compliant. As per the JSE regulations a company does not qualify as a REIT if in non compliance with section 25BB for two consecutive years, thus the distributions withheld as per above would not affect APF’s REIT status.

THE ABOVE FIGURES:• Do not cater for potential tax leakage on withholding

distributions • Assumes all excess equity is paid into SPV 1• Do not cater for revaluation of bulk• Are based on our base case cash flow scenario and do not

cater for any upside in rental recoveries from tenants• Are based on current funding costs


Property name Sales price Status 73 Hertzog 158 135 356 Sales agreement finalised – Transfer delayed due to COVID-19 Cherry Lane 105 246 030 Offer received – In DD Edcon Warehouse 92 000 000 Guarantees provided 99 - 101 Hertzog Boulevard 54 800 000 Sales agreement finalised – Transfer delayed due to COVID-19 PnP PE 54 772 289 Offer received – In DD Mustek (89 Hertzog Boulevard) 52 371 233 Sales agreement finalised – Transfer delayed due to COVID-19 Beacon Isle 33 072 369 Offer received – In DD 9 Bolt Avenue 20 000 000 Guarantees provided Melville 9 & 11 14 000 000

Guarantees provided – updated clearance figures outstanding due to COVID-19 Melville 7 7 000 000

Melville 14 4 500 000595 897 277

BREAKDOWN OF CURRENT HELD FOR SALE ASSETS, SALE 2 AND SALE 3 ASSETS

ASSETS HELD FOR SALE AT 31 MARCH 2020:

Property name Sales price StatusCharles Crescent SPV 1 277 718 648

Under negotiation with buyer

Charles Crescent RMB SPV 2 76 281 352 Bosveld Bela Bela RMB SPV 2 96 000 000 Pick N Pay DC Investec 50 000 000 1 Bolt Avenue Montague Investec 100 000 000

600 000 000

SALES PORTFOLIO 2: SALES PORTFOLIO 3:

Property Name Book value Status Meshcape Building 40 795 313

Being marketed actively

Cascades Shopping Centre 19 343 853 Corporate Park Corner Shopping Centre 22 700 000

ABSA Brakpan 6 417 732 Edgars Polokwane 45 600 000

Accentuate 52 575 849


PORTFOLIO TRANSFORMATION SINCE LISTING

THE PORTFOLIO IS UNDERPINNED BY QUALITY ASSETS, INCLUDING:

• 50% Fourways Mall (super-regional retail)

• Cedar Square (regional retail)

• Eden Meander (regional retail)

• Significant retail presence in the Fourways node

• KPMG’s South African head office (A-grade office)

• Citibank’s South African head office (A-grade office)

• Portside (P-grade office)

• Offshore portfolio (10,3 % of revenue, fully trading post COVID-19)

• Charles Crescent (development opportunity)

• Foreshore Office (development opportunity)

Value of core assets

Rbn

Number of core

properties

% of core properties

by value

At listing 4,5 20 81,5

31 March 2020 12,1 35 94,0

19

AT A GLANCE


SNAPSHOT AS AT 31 MARCH 2020

Property portfolio Asset value: R12,6 billion

Strategic nodes

Fourways*** 175 451 m²Charles Crescent – Sandton 47 692 m²Foreshore – Cape Town 52 152 m²George 29 840 m²

GLA 529 363 m²

Vacancy* 10,8%

Weighted average lease expiry (WALE)(gross income)

5,6 years

Portfolio split(revenue)

Retail 71,8%Office 22,3%Industrial 5,9%

Tenant profile (% of revenue)

A - Large national 56,8%B - National listed/franchises 20,8%C - Other 22,4%

Tenant retention 90,0%

Weighted average (WA) cost of funding 7,8% (including offshore)

Debt

WA term 2,2 yearsTotal debt R6,0 billionLTV** 45,5%ICR 2,1x

Hedging(including offshore)

72,6% of debt hedgedWA term 1,8 years

* Excludes properties earmarked for redevelopment within the next 12 months.** Takes into account vendor receivables.*** All properties in Fourways (including 50% of Fourways Mall).

21

FINANCIAL RESULTS


31 March 2020(R’000)

31 March 2019 (R’000)

ASSETSNon-current assets 12 373 281 12 205 878Investment property 12 231 279 12 203 592Right-of-use asset 141 676Derivatives - 1 598Equipment 326 688Current assets 564 671 679 224Trade and other receivables 531 133 595 093Cash and cash equivalents 33 538 84 131Investment property held for sale 595 897 789 707Fair value of investment property assets 595 897 789 707Total assets 13 533 849 13 674 809EQUITY AND LIABILITIESShareholders’ interest 6 794 292 7 965 297Share capital 5 125 105 5 115 671Other reserves 165 946 77 887Minority interest 23 075 19 032Retained earnings 1 480 166 2 752 707Total equity 6 794 292 7 965 297Non-current liabilities 5 209 358 4 278 103Long-term borrowings 4 904 762 4 259 323Lease hold liability 136 173 -Derivatives 168 423 18 780Current liabilities 1 530 199 1 431 409Trade and other payables 393 774 297 231Derivatives 10 912 23 128Lease hold liability 6 745 -Short-term portion of long-term borrowings 1 118 768 1 111 050Total equity and liabilities 13 533 849 13 674 809

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

HIGH-LEVEL OVERVIEW OF POSITION

• Investment property movement due to:

– Disposal of non-core assets

– Capex spend

– Fourways Mall 50% equalisation

– Conservative property valuations

• Long-term borrowings:

– Exchange rate movement on Euro debt

– Funding of capex

– Funding of Fourways equalisation


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

HIGH-LEVEL OVERVIEW OF PERFORMANCE• Revenue movement due to:

– Sale of non-core assets during the period• Cost to income:

– Cost to income ratio of 26,2% due to additional COVID-19 provisions and costs of Fourways equalisation

– Management has undertaken an extensive cost cutting exercise by reviewing and renegotiating service level agreements for major expenses as well as reviewing and appealing municipal charges

• Fair value adjustments:– Downward mark-to-market movement on

swaps R 174 million – Downward revaluation of investment

property portfolio R 1 billion• Decrease in distributable earnings due to:

– Prudent bad debt provisions due to COVID-19

– Full rental reduction on offshore assets due to COVID-19 absorbed in FY2020 (now fully trading)

– Structural vacancies on assets held for re-development

– Increased B-grade office vacancies – Additional expenses incurred (Fourways

equalisation and re-launch)

31 March 2020(R’000)

31 March 2019(R’000)

Revenue, excl. straight-line rental revenue adjustment 1 054 228 1 190 524Straight-line rental revenue adjustment 31 393 43 802Revenue 1 085 621 1 234 326Property expenses (360 963) (374 658)Net property income 724 658 859 668Other operating expenses (54 154) (46 677)Operating profit 670 504 812 991Fair value adjustments (1 179 930) 73 405Other (expense)/income (303) 12 933Expected credit loss provision (60 268) (7 686)Unrealised losses (19 422) (21 909)Finance income 42 321 37 880Profit before long-term debt interest and taxation (547 098) 907 614Long-term debt interest (350 396) (341 781)Profit before taxation (897 494) 565 833Taxation (399) -Profit after taxation (897 893) 565 833Attributable to equity holders of the holding company (899 865) 563 356Attributable to minority interest 1 972 2 477

DISTRIBUTABLE EARNINGSProfit after taxation attributable to equity holders (899 865) 563 356

Less: straight-line rental revenue adjustment (31 393) (43 802)Add/(less): fair value adjustments 1 180 615 (72 244)Less: gains on sale of investment property - (6 000)Add: unrealised gains/losses 19 422 21 909Add: amortisation and depreciation 16 718 12 515

Distributable earnings 285 497 475 734


Actual31 March 2020

(R’000)

Actual31 March 2019

(R’000)

DISTRIBUTION ANALYSIS

Distributable earnings 285 497 475 734

Less: interim distribution 151 275 254 352

Less: capital retention 134 222 -

Final distribution - 221 382

SHARES QUALIFYING FOR DISTRIBUTION

Number of shares at year-end 998 524 580 994 310 123

Shares repurchased (10 108 038) (9 567 404)

Less: bulk ceded shares to Accelerate* (51 070 184) (51 070 184)

Shares qualifying for distribution 937 346 358 933 672 535

Final distribution per share (cents) - 23,71088

Interim distribution per share (cents) 16,12934 27,26021

Total distribution per share for the year (cents) 16,12934 50,97109

DISTRIBUTION BUILD-UP

* The above distribution per share does not include 51 070 184 shares, which do not qualify for distribution as the distribution was ceded to the fund,until the earlier of 31 December 2021 or such time that the bulk is developed/sold.

25

KEY INDICATORS


KEY INDICATORS

Key indicator summary31 March

202031 March

2019

Portfolio value (Rbn) 12,6 12,7

GLA (m²) 529 363 601 506

Number of properties 51 62

WALE (years) 5,6 5,3

Lease escalations (excluding offshore) 7,4% 7,4%

Listed/large national tenants (by revenue) 56,8% 65,7%

* Takes into account vendor receivables.

Key ratios31 March

202031 March

2019

Interest cover ratio 2,1 2,3

LTV* 45,5% 39,0%

Net asset value (Rbn) 6,8 8,0

Senior secured rating A (za) AA- (za)

Senior unsecured rating BBB (za) BBB+ (za)


LEASE EXPIRY PROFILE, ESCALATIONS AND DEBTORS AGEING

Sectoral type31 March 2020

(%)31 March 2019

(%)

Industrial 7,3 7,3

Office 7,7 7,6

Retail 7,6 7,3

SA portfolio 7,6 7,4

European retail 0,0 0,0

Total portfolio 6,4 6,6

Rental reversions

Expired(m²)

Renewals(m²)

Expiredrental(R/m²)

Newrental(R/m²)

Rentalreversion

(%)

Office 9 901 6 528 161,00 160,7 (0,2)

Retail 32 985 29 979 171,6 168,1 (2,0)

Industrial 24 276 22 758 87,7 88,96 1,4

Total 67 162 59 265 139,7 136,1 (2,6)

Tenant arrears 120+ days 90 days 60 days 30 days Total

31 March 2020 – 6 031 302 10 175 720 15 731 384 31 938 406

Tenant retention

90,0 % by GLA

0,0% 10,0% 20,0% 30,0% 40,0%

Mar 21

Mar 22

Mar 23

Mar 24

> Mar 24

European retail Fourways Mall Retail Office Industrial

LEASE EXPIRY PROFILE BY GROSS RENTAL CONTRACTUAL ESCALATIONS

KEY TAKE AWAYS Lease expiry in excess of 5 years

Stable contractual escalations Focus on tenant retention


VACANCY PROFILE

Sectoral type 31 March 2020 31 March 2019

Industrial 8,6% 2,5%

Office* 25,05% 21,17%

Retail 10,0% 6,25%

European retail 0,0% 0,0%

Total portfolio 10,8% 9,00%

VACANCIES AS AT 31 MARCH 2020# (M²)

# Vacancies shown above exclude vacant areas under headlease at Fourways Mall.* Vacancies also exclude properties held for redevelopment in the next 12 months.

The office vacancy relates to B-grade properties and office space attached to neighbourhood centres

APF’S OFFICE SPLIT BY REVENUE (%)

KEY TAKE AWAYS Vacancies stable (pre-COVID-19)

Offshore portfolio at 0% vacancy and earning full income post COVID-19 lockdown

AB

B to be redeveloped to AP

55,7

10,7

23,5

10,1

VACANCY (GLA)

- 5 000 10 000 15 000 20 000 25 000 30 000 35 000

Industrial

Office

Retail

European retail

0

29

CAPITAL AND TREASURY MANAGEMENT


Long-term debt allocation

31 Mar 2020 31 Mar 2019(Rm) (%) (Rm) (%)

Debt capital markets 1 785 29,6 1 785 33,2

Bank funding 4 239 70,4 3 590 66,8

Total 6 024 100,0 5 375 100,0

WA debt term (years) 2,2 2,5Short-term portion of debt 1 118 18,6 1 111 20,7

Debt hedged 72,6 82,8

WA swap term (years) 1,8 2,5

Blended interest rate** 7,8 8,4

Interest cover ratio (x) 2,1 2,3LTV*** 45,5 39,0

LONG-TERM DEBT

LONG-TERM DEBT FUNDING MATURITY PROFILE (RM)

DCM special purpose vehicle (SPV)

31 Mar 2020 31 Mar 2019(Rm) (%) (Rm) (%)

Debt capital markets 1 785 53,8 1 785 56,9

Bank funding 1 532 46,2 1 353 43,1

Total 3 317 100,0 3 138 100,0Interest cover ratio (x) Covenant 2x 2,2 2,2

LTV (covenant 45%) 43.0 40,7

** Includes the effect of interest rate swaps.*** Takes into account receivables from vendors.

INTEREST RATE SWAP MATURITY BUCKETS – SA ONLY (RM)

KEY TAKE AWAYS All funding is secured

Balance sheet optimisation to reduce LTV’sBlended interest rate will continue decreasing based on rate cuts

and swap maturities April and June expiring debt has been refinanced/repaid post year-end

0 200 400 600 800 1 000 1 200

May 23Mar 23Feb 23Feb 22Jan 22Oct 21Apr 21Feb 21

Nov 20Aug 20

0 200 400 600 800 1 000 1 200

Nov 23Jul 23

Jun 23Feb 23Jan 23Nov 22Sep 22Aug 22Jun 22Apr 22Dec 21Oct 21Jul 21

Feb 21Oct 20Sep 20Aug 20Jul 20

May 20

DCM RMB Investec Eerste Bank


The following current debt facilities at 31 March 2020 have been refinanced post pear end.

Funder Nominal amount (R’000) Term Margin – linked to 3-month JIBAR

RMB Facility P 129 328 1 year 235 bps

RMB Facility R 48 000 1 year 235 bps

RMB Facility X 32 500 6 months 230 bps

RMB Facility F 70 000 2 years 260 bps

RMB Facility H 63 625 2 years 260 bps

RMB Facility K 41 375 6 months 250 bps

Investec Facility Z` 32 500 6 months 255 bps

RE-FINANCING COMPLETED POST YEAR END

Undrawn committed facilities. At the date of release of this presentation APF had committed undrawn facilities in the amount of R 125 million.

32

FOURWAYS MALL


TENANT MIX AND VACANCIES

TRADING

• World class shopping centre

• Easy access via secured undercover parking

• Decent trading trajectory from opening peaking in November (black Friday sales) and December (Christmas sales)

• Very densified catchment area with additional bulk that can be developed into residential

• Shoppertainment still a differentiating focus

CURRENT VACANCY

• 0,5% excluding headlease

• WALE in excess of 5 years

• Only 1,24% of leases by GLA expiring in next 12 months

• Edcon shops in Mall on “retain” list see separate slide

HEADLEASE

• 19 085m2

• Reduced from 22 022 m2 at equalisation

• 11,1% of GLA

STORES OPEN AND TRADING ON LEVEL 3

• 85% of stores open and trading

Category % of GLA

Apparel 30%

Electronics 3,5%

Entertainment 10,4%

Food and food retailers 8%

Food services 4%

Health and beauty 3,50%

Homeware, furniture and interior 10%

Motor related 3%

Speciality 4,6%

Sportwear and outdoor 4,0%

Banking services and other 19%

Total 100%

BALANCED TENANT MIX


KIDZANIA AND OTHER ENTERTAINMENT OFFERINGS

KIDZANIA

• Construction to re-commence end of August 2020 with a 6 month completion period

• Full belief in the unique educational entertainment offering provided by the concept for children

BOUNCE

• Under current regulations will only open under level 1

• Unique and successful concept negatively affected by COVID-19 not the economy

ADVENTURE GOLF

• Expected to open on level 2

• Operator currently looking at distancing measures that can be put in place to open earlier

• Outdoor entertainment concept negatively affected by COVID-19 not the economy

FUN COMPANY

• Expected to re-open on level 1

• High-tech entertainment for children negatively affected by COVID-19 not the economy

STER KINEKOR

• Expected to open mid-August under strict conditions

• New material expected from distributors by then

• Analysis of Ster Kinekor balance sheet indicated that they will be sustainable post lockdown


GREATER RETENTION OF CATCHMENT AREA

• More shoppers working from home and travelling shorter distances due to COVID-19

• The new Fourways Mall now matching offering of other super-regionals

• Fourways node has a much more diverse LSM spread than other super-regionals (lower and middle LSM shoppers are returning to malls in greater numbers and sooner)

• The new Fourways Mall has much more of a family shopper element than other super-regionals

• With travel restrictions and the financial impact of COVID-19, shoppers are expected to stay home versus go on holiday

SHOPPERS AND TENANTS

• Extensive safety measures put in place

• Deep cleanse of malls at night

• Focused marketing to give assurance regarding safety measures


• Understanding tenant needs and requirements going forward

• Ample parking and security

• Wide walk ways

• Modern design allows for appropriate social distancing

• Wrap around parking allows for easy access

A RESILIENCE DURING COVID-19 AND BEYOND


THE FOURWAYS MALL DEVELOPMENT EQUALISATION WAS CONCLUDED ON 29 NOVEMBER 2019

• Forward revenue of R602,5 million (net)

• Accelerate portion before equalisation 37,9%

• Additional percentage purchased to own the mall 50/50: 12,1%

• Cap rate: 8%

• Application of the equalisation formula:

THE PURCHASE PRICE ADJUSTMENT ACCOUNT (31 AUGUST 2020)

• The purchase price may be adjusted during a 12-month period based on leases still to be confirmed, cost recoveries and expenses still to be verified

• The potential purchase price adjustment ranges from a reduction of R 74,1 million to an increase of R221,6 million

THE FOURWAYS MALL EQUALISATION

Additional share to be acquired by APF 12,1%

Attributable income to be acquired (Rm) 72,6

Purchase consideration (Rm) 907,8

37

PORTFOLIO UPDATE


CEDAR SQUARE AND EDEN MEANDER

EDEN MEANDER

TURNOVERS

• Turnover figures up 13,9% FY2020 vs FY2019

• Christmas trade November 2019 to January 2020 up 26,4% vs prior year

TRADING DENSITIES

• UP 9,3% FY2020 vs FY2019

• Christmas trade November 2019 to January 2020 up 19,7% vs prior year

BULK AVAILABLE FOR FUTURE DEVELOPMENT IN THIS GROWING NODE

CEDAR SQUARE

TURNOVERS

• Turnover figures up 5,2% FY2020 vs FY2019

• Christmas trade November 2019 to January 2020 flat vs prior year

TRADING DENSITIES

• Jan to May 2020 trading density up 16% vs prior year

• Woolworths, Pick n Pay, Baby City trading figures up significantly during lockdown

RESTAURANTS

• Open and trading on level 3 lockdown, but under severe pressure

• Planned drive through/roadhouse for restaurants


EDCON

EDCON EXPOSURE AND TRADING

• APF’s exposure to Edcon is limited to Jet and Edgars in Fourways Mall and Edgars Polokwane

• The exposure is 1,2% of revenue (6,3% by GLA) for Fourways Mall and 1,6% by revenue (2,0 % by GLA) for APF as a whole

• JET to be sold to Truworths group

• Edcon Fourways Mall earmarked to stay open

• Fourways Mall is Edgars flagship store

DRAFT TERMS WITH RETAILABILITY (PURCHASER OF EDGARS)

• Edgars Polokwane:

– New 5 year lease

– Escalating at 6% per annum

• Edgars Fourways Mall:

– New lease to August 2029 plus 2 x 5 year options

– Escalating at 6% per annum

EDCON SPACE POSSIBILITIES

• The Edgars box in Fourways Mall was laid out in a manner which enables it to be easily broken down into smaller boxes

• On a repurposed basis the box could yield more if fully let

40

EUROPEAN RETAIL


OBI PERFORMANCE

BuildingsGLA(m²)

Fair value at31 March 2020

(€’000)

Fair value at31 March 2019

(€’000)

Tenantturnover growth

year on year31 Dec 2019

(%)

Portfolioby rental income

(%)

Remaininglease term

(years)

AUSTRIA

Wien 3 16 356 43 691 000 42 940 000 9,5 40 6,58

Mauthausen 5 146 6 799 000 7 237 000 5,1 9 10,58

Hallein 3 739 2 984 000 3 053 000 4,8 4 10,58

Bruck/Mur 6 823 6 481 000 6 500 000 7,8 9 10,58

Mürzzuschlag 5 822 7 292 000 7 519 000 6,9 8 10,58

Rosental 3 316 3 690 000 3 598 000 8,4 4 10,58

SLOVAKIA

Kosice 8 054 6 540 000 6 589 600 35,7 7 10,58

Martin 7 950 6 936 400 6 218 000 22,4 7 10,58

Nitra 8 687 8 270 000 7 872 200 17,0 11 10,58

65 893 92 683 400 91 526 800 11,9 8,90


• Portfolio independently valued annually by CBRE, value confirmed in June 2020 as € 92 528 000 at a yield of 6,2%

• Increased return due to devaluation of the Rand (cross currency swap limited to € 21 000 000)

• OBI paid 50% of rental during the lockdown period (16 March to 13 April 2020 for Austria and 16 March to 5 May 2020 for Slovakia)

• OBI now paying full rental going forward

• OBI anticipates increased turnover numbers in 2020, even after taking into account the effect of the COVID-19 lockdown period - YTD turnover is in line with the comparative 2019 period and it expects a strong summer as more people are stayinghome and doing DIY

• Wien 3 trading well – expected positive reversion on Wien lease in 2021 of 2%

• Negotiations regarding extension of the Wien lease for an additional 10 years underway

• Management trying to lock in lease extension on remainder of leases as well

RESILIENT DURING AND AFTER COVID-19

43

CORPORATE GOVERNANCE AND ORTHOTOUCH


CORPORATE GOVERNANCE AND ORTHOTOUCH

CORPORATE GOVERNANCE

• Composition of the board enhanced with the addition of 3 new directors

• George Cavaleros CA (SA) – Retired audit partner with 30 years experience at Deloitte & Touche. Member of the CFA institute, Institute of Internal Auditors and the SA Instiutute of Chartered Secretaries

• Abel Mawela (MBA) (BcomH) – Extensive corporate governance experience. Member of Chartered Institute of Government Finance, Audit and Risk Officers

• Dawid Wandrag – (Bcom Accounting) – Extensive property and finance experience. Currently supporting management as an executive director

• Please refer to the annexure 3

ORTHOTOUCH FACTS AT LISTING

• On listing, Accelerate purchased properties from Orthotouch, who had acquired these properties in terms of a business rescue plan

• The sales to Accelerate were permissible in terms of the business rescue plan

• Properties were purchased at market related prices as verified by our advisors and independent external (JSE approved) valuers

• Accelerate and its funders obtained legal opinions regarding the validity and enforceability of these property sales at the time of listing

• The total value upside for APF over the last 6 years has only been 5,45%

• Please refer to the annexure 4 for purchase prices and sales of properties

RECENT HEADLINES

• Accelerate has been made aware that there is a potential settlement by Orthotouch involving Accelerate shares

– Accelerate is not involved in this matter

– Accelerate is not providing any shares whatsoever for the above

– Michael Georgiou has also confirmed that he is not personally providing any shares for the above

45

SUMMARY


STRATEGIC SHIFT

• Focusing on right nodes

• Property fundamentals

COVID-19 RESPONSE


• Focused marketing

• Safety measures

BALANCE SHEET OPTIMISATION

• Ongoing non-core sales

• Relook at funding package

• Effective hedging

• Short to medium term retention of distributions

OUTLOOK

• Based on the current market conditions and the impact it has on the business, it may be unlikely that the company will be able to pay distributions during 2021. The board will however continue to assess the impact COVID-19 has and will keep shareholders informed in this regard, to the extent required.

• Post the potential retention of distributions as contemplated above, the fund has amended its capital retention policy to cater for a retention of up to 25% of distributable profits depending on the company’s capital requirements, growth projects and balance sheet requirements.

SUMMARY OF KEY TAKEAWAYS AND OUTLOOK

47

ANNEXURE 1PROPERTY PORTFOLIO SUMMARY


SECTOR AND GEOGRAPHIC SUMMARY

SECTOR PROFILE BY REVENUE (%) SECTOR PROFILE BY GLA (%)

GEOGRAPHIC PROFILE BY REVENUE (%) GEOGRAPHIC PROFILE BY GLA (%)

European retailRetail

IndustrialOffice

61,6

10,2

22,3

5,9

European retailRetail

IndustrialOffice

46,8

12,4

24,4

16,4

South AfricaAustria

Slovakia 7,887,6

4,67,7

89,8

2,5

South AfricaAustria

Slovakia


Single

Multi

65

35

TENANT PROFILE

TENANT PROFILE BY REVENUE (%) SINGLE VS MULTI-TENANTED BY GLA (%)

A

B

C

56,8

22,4 20,8

A: Large national tenants, large listed tenants and major franchises, including Absa Bank, Capitec Bank, Dis-Chem, Edcon, FNB, Foschini, Jet Stores, KPMG, Massmart, Medscheme, Nedbank, OBI, OK Furnishers, Pepkor, Pick n Pay, Shoprite, Standard Bank, Woolworths

B: National tenants, listed tenants, franchises and medium to large professional firms, including Fishmonger, KFC, Mugg & Bean, Nando’s, Spur, Steers, Wimpy

C: Other

50

ANNEXURE 2OUR FOURWAYS EXPOSURE


OUR FOURWAYS FOOTPRINT

1

2

3

5

7

6

11

8

910

4

Number Property

1 Fourways Mall

2 Leroy Merlin (not owned by APF)

3 Cedar and BMW bulk

4 Cedar Square Shopping Centre

5 BMW Fourways

6 Valleyview Centre

7 The Buzz Shopping Centre

8 The Buzz bulk

9 Waterford

10 FORD Fourways

11 The Leaping Frog

52

ANNEXURE 3OUR LEADERSHIP


OUR BOARD OF DIRECTORS

With a wealth of diverse experience in property, business and governance, our Board of Directors embrace excellence in corporategovernance as the cornerstone of value creation.

Executive Directors

OUR LEADERSHIP

# Mr Wandrag was appointed as an Executive Director on 1 April 2020. Detailed biographies of our leadership team can be found at https://www.acceleratepf.co.za/investorcentre/#IntegratedAnnualReport

CommitteesAR Audit and RiskCommittee

SET Social, Ethics and Transformation Committee

R RemunerationCommittee

I Investment Committee

N Nominations Committee

TG Technology Governance Subcommittee

Committee chair

I

I

TG

I TG

SETMr Dimitri Kyriakides (65) Chief Financial Officer (CFO)Appointed: 1 January 2013Qualification: CA(SA)Expertise: Audit, accounting, acquisitions, disposals, finance, information technology (IT), property development and property management

Mr Dawid J Wandrag (68)Executive Director#

Appointed: 1 May 2019Qualifications: BCom (Accounting)Expertise: Acquisitions, disposals, finance, property development, property management, audit, banking, corporate governance, insurance, risk management, capital markets, legal, compliance and IT

Mr Michael N Georgiou (50)CEOAppointed: 1 January2013Expertise: Acquisitions, disposals, finance, property development and property management

Mr Andrew Costa (49)Chief Operating Officer (COO)Appointed: 1 April 2013Qualifications: BCom • LLBExpertise: Acquisitions, capital markets,disposals, finance, investment banking, legal and property management


N

OUR LEADERSHIP CONTINUED

Committees

AR Audit and RiskCommittee






Committee chair

Non-Executive Directors

AR SET

RN

IAR

Mr Timothy J Fearnhead (71)Independent Director and ChairmanAppointed: 1 June 2013Qualifications: CTA • CA(SA) • AdvDip (Banking)Expertise: Audit, banking, corporate governance, finance, insurance, remuneration and risk management

Dr Gert C Cruywagen (64)Lead Independent DirectorAppointed: 1 June 2013Qualifications: MBSc • PMD • PhD • FIRM(SA) • CRM Prof (SA) • RIMS CRMP (US)Expertise: Compliance, corporate governance, insurance and risk management

Ms Kolosa Madikizela (40)Independent DirectorAppointed: 1 June 2013Qualification: PrCM • PrCPM • PMPExpertise: Property development and property management



Committees

AR Audit and RiskCommittee






Committee chair

RI

NRAR

SETAR

Non-Executive Directors

Associate Prof. François M Viruly (60)Independent DirectorAppointed: 1 April 2014Qualifications: BA • BA (Hons) • MAExpertise: Property economist

Mr George Cavaleros (64)Independent DirectorAppointed: 1 May 2019Qualifications: CA(SA) • CFA • CIA • ACIS Expertise: Finance, audit, insurance, remuneration, capital markets, compliance and accounting

Mr Abel M Mawela (58)Independent DirectorAppointed: 1 May 2019Qualifications: MBA • BCom (Hons)Expertise: Finance, audit, corporate governance, insurance, risk management, compliance and accounting


BOARD DEMOGRAPHICS AGE (YEARS)

INDEPENDENCE (%) SECTOR EXPERIENCE (%)

TENURE (YEARS)


57

ANNEXURE 4ORTHOTOUCH PROPERTIES


ORTHOTOUCH PROPERTIES

Properties sold to date:

Properties bought at listing from Orthotouch

Independent Valuation for

listing –Dec 2013

Consideration paid for up front

by Accelerate

Consideration paid for as

deferred payment

Total paid by Accelerate

Fair value per Accelerate

financials at 31 March 2014

Fair Value Movement from

listing price to 31 March 2014

Fair value per Accelerate

financials at 31 March 2020 Sale amount Sale date

Beacon Isle 20 000 000 17 683 711 402 976 18 086 687 20 000 000 1 913 313 33 072 369 14 Main Road Melville 8 300 000 8 215 845 99 371 8 315 216 8 700 000 384 784 4 500 000 9 & 11 Main Road Melville 31 500 000 27 338 745 4 974 927 32 313 672 32 000 000 -313 672 14 000 000 7 Main Road Melville 15 500 000 7 790 107 9 434 086 17 224 193 15 600 000 -1 624 193 7 000 000 Eden Terrace 38 000 000 32 000 000 - 32 000 000 38 200 000 6 200 000 - 42 850 000 09-Nov-17Waterford S/C 36 000 000 39 270 044 4 288 287 43 558 331 36 100 000 -7 458 331 75 131 949 Cascades 15 000 000 14 000 000 14 000 000 15 000 000 1 000 000 19 343 853 Flora Office Park 73 000 000 71 374 495 32 137 934 103 512 429 74 582 000 -28 930 429 - 78 000 000 03-Jul-19Leaping Frog 148 000 000 147 121 010 147 121 010 148 000 000 878 990 150 800 000 Glen Gables 46 000 000 32 556 543 9 711 718 42 268 261 47 104 000 4 835 739 - 40 000 000 13-May-19Highveld Centurion 46 500 000 43 459 756 43 459 756 47 300 000 3 840 244 - 57 000 000 10-Feb-17Meshcape Edenvale 35 000 000 32 554 905 4 201 346 36 756 251 35 840 000 -916 251 40 795 313 Wilropark Shopping Centre 12 000 000 9 000 000 9 000 000 12 000 000 3 000 000 - 11 000 000 31-Jan-199 Charles Crescent 34 300 000 17 099 946 21 976 455 39 076 401 34 300 000 -4 776 401 37 202 190 Wilrogate Shopping Centre 72 000 000 58 974 904 58 974 904 72 000 000 13 025 096 - 83 000 000 31-Jan-191 Charles Crescent 119 400 000 110 808 516 110 808 516 119 400 000 8 591 484 103 500 000 Cherry Lane 102 000 000 80 475 677 54 445 028 134 920 705 104 448 000 -30 472 705 105 246 030 10 Charles Crescent 15 600 000 20 844 885 20 844 885 15 572 938 -5 271 947 21 900 000 Kyalami Downs S/C 132 000 000 130 000 000 130 000 000 132 000 000 2 000 000 - 99 500 000 20-Dec-19Mill House 24 700 000 22 979 381 22 979 381 25 292 800 2 313 419 - 29 000 000 30-Jun-15PriMovie Park 93 000 000 83 090 314 2 194 262 85 284 576 91 200 000 5 915 424 136 200 000 Rietfontein Pavilion 28 000 000 24 378 811 24 378 811 28 672 000 4 293 189 - 28 000 000 16-May-16Tyger Manor 51 400 000 48 832 608 48 832 608 52 633 600 3 800 992 - 59 600 000 11-Oct-17Venter Centre 59 000 000 53 059 875 793 460 53 853 335 60 416 000 6 562 665 - 68 000 000 18-Jan-17ABSA Brakpan 12 000 000 10 291 057 1 676 379 11 967 436 12 288 000 320 564 6 417 732 Corporate Park Shopping Centre 29 500 000 9 227 480 13 144 206 22 371 686 29 500 000 7 128 314 22 700 000 Eastlynne Shopping Centre 33 000 000 30 499 213 353 387 30 852 600 33 792 000 2 939 400 - 34 000 000 17-May-19Highway Gardens Office Park 29 000 000 18 773 699 8 230 336 27 004 035 29 696 000 2 691 965 - 29 000 000 26-Apr-18Rock Cottage 64 000 000 63 000 000 63 000 000 63 000 000 - - 65 000 000 08-Jun-16Willows Shopping Centre 65 000 000 58 739 013 7 658 654 66 397 667 66 560 000 162 333 - 79 125 000 23-Sep-14

1 488 700 000 1 323 440 540 175 722 812 1 499 163 352 1 501 197 338 2 033 986 777 809 436 803 075 000 Total value of properties on hand plus sale proceeds throughout the period to 31 March 2020 1 580 884 436 Value upside over 6 years 81 721 084 5,45%

ACCELERATE PROPERTY FUND


INVESTOR RELATIONS

Articulate Capital Partners: Morne Reinders

Tel: 082 480 4541

Email: [email protected]

THANK YOU


This presentation is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed orpassed on to any other person or published in whole or in part for any other purpose.

This presentation does not constitute an offer or invitation to subscribe for or purchase any securities and nothing contained herein shallform the basis of any contract or commitment whatsoever. Any decision to purchase securities in the context of a proposed offering ofsecurities, if any, should be made solely on the basis of information contained within an offering circular, programme memorandum orprospectus published in relation to such an offering.

This presentation is intended only for persons who have professional experience in matters relating to investments and to persons towhom it may be lawful to communicate it to (all such persons being referred to as relevant persons). This presentation is only directed atrelevant persons and any investment or investment activity to which this presentation relates is only available to relevant persons or willbe engaged in only with relevant persons. Solicitations resulting from this presentation will only be responded to if the person concernedis a relevant person. Other persons should not rely or act upon this presentation or any of its contents.

This presentation is for distribution in the Republic of South Africa only.

Nothing in this presentation should be construed as legal, financial, accounting, tax or other advice and relevant persons shoulddetermine for themselves the relevance of the information contained in this presentation.

This presentation is a summary of Accelerate’s financial results. Any decisions made should be based on the full 31 March 2020 auditedconsolidated financial statements which are available on the company’s website.

By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoinglimitations.

The information included in this presentation has not been reviewed or reported on by the company’s auditors.

DISCLAIMER

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