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ANNUAL RESULTS PRESENTATIONFOR THE YEAR ENDED 30 JUNE 2017

2

AGENDA

01 Milestones & Highlights

02 Financial Results

03 Capital Management

04 Portfolio Update

05 Property Investment & Development

06 Conclusion

07 Annexures

South Africa

V&A Waterfront

GOZ

Globalworth

Oxford Corner, Rosebank

MILESTONES & HIGHLIGHTS

M1 Place, Eastgate, Sandton

4

MILESTONES

South Africa

▪ Gross monthly billings in excess of R1bn

▪ Sale of Harrowdene to Huawei for R846m

▪ First Trading Profit and Development Fee

income earned

▪ 1 399 222m² of space let in FY17

V&A Waterfront

▪ Completion of Silo

Precinct scheduled for

September when the

Zeitz MOCAA and

Radisson Red Hotel opens

▪ Good progress implementing strategic

initiatives, including Internationalisation,

Funds Management and Trading and

Development

5

Australia

▪ Successful acquisition of AUD440.3m GPT Metro Office Fund (GMF)

▪ Significant portfolio reweighting through AUD480m office asset

purchases and AUD166m strategic industrial asset sales:

- Office 66% vs. 56% at FY16

- Geographically to New South Wales 26% from 20% at FY16

Funds management

▪ R2.3bn Healthcare Fund established with 5

assets

▪ Capital raise to third parties scheduled for

HY18

▪ Further acquisitions and developments in the

pipeline

Eastern Europe

▪ Successful EUR186.4m

acquisition of 26.9% of

Globalworth Real Estate

Investments (GWI)

6

Delivering on our strategic initiatives

in line with our vision:

To be a

leading international property company providing space to thrive

Open JV (50/50)

▪ Strategic venture aligning ourselves

with the co-working, flexible office trend

▪ Anticipated rollout of 8 locations in

3 years, with 138 West Street Sandton

just opened

▪ Open will operate the sites and GRT will

provide the funding

▪ Incubator for thriving businesses and

tomorrows office users

7

PERFORMANCE

HIGHLIGHTS

195.8 cents

▪ 6.5% growth in total FY17 dividend per share

▪ Final dividend of 100.8c up 6.9% compared to FY16

final dividend of 94.3c

R5.6bn

▪ Total distributable income

▪ 10.4% growth FY16 to FY17

R122.3bn

▪ Group property assets

8

35.0% Group LTV

▪ Gearing remains below 40%

▪ Increased from 33.7% at FY16

27.1%

▪ RSA total expense

to income ratio

▪ Expenses under control

Total RSA arrears – R60.4m

▪ Well contained

▪ 6.5% of collectables

▪ R13.2m bad debt write

off (I/S)

Vacancies – 4.4%

▪ RSA vacancies improved from

5.7% at FY16

▪ Strong focus on tenant retention

and leasing

9

COMPANY

HIGHLIGHTS

▪ Largest South African primary listed REIT

▪ 21st largest company in the FTSE/JSE Top 40 Index

▪ Gross market capitalisation R70.7bn

▪ Liquid and tradeable:

- R3.8bn average value of shares traded per month

▪ 8th year inclusion in FTSE/JSE Responsible Index

▪ 1st year inclusion in the FTSE4Good Emerging Index

▪ Top 10 constituent of FTSE EPRA/NAREIT Emerging Index

Investment proposition

▪ Sustainable quality of earnings

▪ 14 year track record of uninterrupted

dividend growth

▪ Underpinned by high-quality physical

property assets

▪ Diversified across international geographies

and sectors

▪ Dynamic and proven management track record

▪ Best practice corporate governance

▪ Transparent reporting

▪ Level 3 BEE contributor

10

72.7 78.5 84.4 89.5 95.0

44.576.382.8

44.5

94.3100.8

FY13 FY14 FY15 FY16 FY17

Interim dividend Special dividend Final dividend

GROWTH IN DIVIDEND PER SHARE (cents)

183.8

149.0161.3

173.4

195.8

Growth

6.5%8.3% 7.5% 6.0% 6.5%

The Place, Sandhurst, Sandton

11

0

500

1 000

1 500

2 000

2 500

3 000

0

15

30

45

60

75

90

105

120

135

FY11 FY12 FY13 FY14 FY15 FY16 FY17

GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION

Rbn cents

3 000

2 500

2 000

1 500

1 000

500

0

2 510c2 448c

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

12

4%

5%

6%

7%

8%

9%

10%

11%

2012/01/12 2012/07/12 2013/01/12 2013/07/12 2014/01/12 2014/07/12 2015/01/12 2015/07/12 2016/01/12 2016/07/12 2017/01/12

Long Bond GRT Forward Yield

8.80%

LONG BOND YIELD VS. GRT FORWARD YIELD

Jun

2011

Dec

2011

Jun

2012

Dec

2012

Jun

2013

Dec

2013

Jun

2014

Dec

2014

Jun

2015

Dec

2015

Jun

2016

Dec

2016

8.18%

Greencourt “A” & “B”, Bucharest, RomaniaJun

2017

FINANCIAL RESULTS

Waterway House, V&A Waterfront

14

FY17Rm

FY16Rm

INCREASE/ (DECREASE)

Gross property income 10 716 9 764 9.8%

RSA(1) 8 079 7 589 6.5%

GOZ 2 637 2 175 21.2%

Property expenses (2 245) (2 126) 5.6%

RSA (1 901) (1 864) 2.0%

GOZ (344) (262) 31.3%

Net property income 8 471 7 638 10.9%

Other operating expenses (416) (308) 35.1%

RSA (289) (204) 41.7%

GOZ (127) (104) 22.1%

Net property income after operating expenses 8 055 7 330 9.9%

Finance costs (2 510) (2 466) 1.8%

RSA (1 944) (1 989) (2.3%)

GOZ (566) (477) 18.7%

Finance income 789 760 3.8%

Investment income from V&A Waterfront 479 429 11.7%

Investment income from GWI 78 - 100%

Other finance income(2) 232 331 (29.9%)

Adjustment for NCI, foreign exchange profit /(loss) and normal taxation (734) (552) 33.0%

Distributable income 5 600 5 072 10.4%

Dividend for the period 5 600 5 072 10.4%

CONSOLIDATED DISTRIBUTION CALCULATION

1. Trading Profits and Development Fees of R91m included in revenue.

2. Includes R52m (FY16: R39m) dividends received on treasury shares held, R45m (FY16: R31m) antecedent dividend, R0m (FY16: R22m) distribution from Stenham and R45m (FY16: R50m) interest on V&A Waterfront

development funding.

* Average exchange rate at R10.26/AUD (FY16: R10.57/AUD) for GOZ.

15

INCOME

STATEMENT

Distributable income growth of 10.4%

▪ Steady contribution from South Africa

▪ First inclusion of Trading Profit and Development Fee income

▪ Solid contribution from the V&A, growth has slowed down as the

base has grown

▪ Stable contribution from GOZ due to additional investment of 48.8m

shares but earnings impacted negatively due to the higher expected

(9.7%) and actual withholding tax rates (9.7% at HY17 vs. 6.9% at

HY16 & 6.5% at FY16 ) and the stronger ZAR (R10.26/AUD1 average

vs. FY16 at R10.57/AUD1)

▪ First dividend contribution from GWI of EUR0.22 cps

▪ Net property income from GOZ

increased 19.9% mainly as a result

of the acquisition of GMF

▪ RSA net property income

under pressure

▪ Costing more to keep

and attract tenants in a fiercely

competitive and weak market

16

Property

Expense Ratio

Operating

Expense Ratio

Total

Expense Ratio

South Africa 23.5% 3.6% 27.1%

V&A Waterfront 28.1% 3.3% 31.4%

GOZ 13.0% 4.8% 17.8%

Expenses remain under control

▪ 11.7% increase in investment

income received from the

V&A driven mainly by hotel

occupancies combined with

the conversion of

development activity into

income producing assets

▪ SA property expenses under control

▪ Operating expenses increased as a result of less development fees

earned in the current period and the reallocation of expenses

▪ V&A Waterfront and GOZ expense ratios up slightly due to increased

office weightings

▪ Reduction in finance costs for RSA

due to increase in use of CCIRS

▪ Increase in finance costs for GOZ

due to acquisition of GMF

17

FY17

Rm

FY16

Rm

INCREASE/

(DECREASE)

Property portfolio(1) 109 442 104 690 4.5%

RSA 76 906 73 752 4.3%

GOZ(2) 32 536 30 938 5.2%

50% Investment in V&A Waterfront 7 110 6 616 7.5%

26.9% Investment in Globalworth 2 769 - 100%

Other property-related investments 226 440 (48.6%)

Nominal borrowings(3) 42 428 38 413 10.5%

RSA(4) 29 288 24 653 18.8%

GOZ(2) 13 076 13 760 (5.0%)

Shareholders interest 72 045 68 295 5.5%

CONSOLIDATED BALANCE SHEET (EXTRACTS)

1. Includes R1 241m (FY16: R1 938m) of properties classified as held for sale.

2. Closing exchange rate R10.04/AUD (FY16: R11.04/AUD).

3. Excludes fair value adjustments.

4. The total value for FY17 excludes the deferred payment of R85m (FY16: R165m) on the Samrand land purchased. The outstanding payment is due in September 2017.

18

▪ 4.5% or R4.7bn increase in property values

(RSA and GOZ)

▪ R5bn for the acquisition of GMF in GOZ

▪ R1.5bn of assets acquired for the

Healthcare Fund

▪ 18.8% increase in borrowings in RSA which

was used to fund the GWI acquisition,

acquisition of assets for the Healthcare

Fund and further investment into the

V&A Waterfront and GOZ

▪ 4.6% increase in borrowings in AUD for

GOZ as a result of the GMF acquisition

which, after the foreign exchange gain

of R1.4bn, results in a 5.0% decrease in

borrowings in Rands

▪ NAV up 1.7% to

2 518 cents per

share from FY16

BALANCE

SHEET

19

2 861

3 8494 087

368

429479

658

772865

91

345

22

78

FY15 FY16 FY17

RSA V&A Waterfront GOZ Trading & Development Listed Investments

CONTRIBUTION TO DISTRIBUTABLE INCOME

Growth

10.4%R5 600m

15.4%

8.6%

73.0%

R5 072m

15.2%

8.5%

75.9%

R4 232m

15.5%

8.7%

67.6%

0.4%

8.2%

Anslow, Bryanston, Sandton

1. Listed Investments for FY17 consist of investment in GWI, FY16 consists of investment in Stenham.

1.6%

(1)

1.4%

CAPITAL MANAGEMENT

1 Charles Street, Paramatta, NSW, Australia

21

RSA

CAPITAL

MANAGEMENT

Total debt R29.3bn

▪ Unsecured debt increased by R4.5bn, of which R3.5bn is

corporate bonds

▪ 17 new bond issues, publicly and privately placed, listed and

unlisted, at margins between 140 to 185 basis points with terms

of 3 to 7 years

▪ Demand in bond market exacerbated by demand for HQLA bonds

by banks

▪ EUR100m loans for GWI investment

▪ Unencumbered assets (properties & investments) R44.2bn

▪ Weighted average cost of debt decreased to 9.2% excluding

CCIRS and EUR debt

▪ Funded from:

- R2.5bn equity DRIP proceeds

- R4.6bn net new borrowings

- R2.0bn property disposals

Investment activities

▪ 85.6% of the liabilities are at

fixed interest rates for an

average term of 3.9 years

Interest rate risk

22

AUD & EUR cross currency

interest rate swaps (CCIRS)

▪ Total AUD700m representing 76% of

historical cost and 52% of market

value of GOZ

▪ Total EUR86.4m together with the

direct EUR loans representing 100% of

the historical cost of GWI

Credit rating

▪ Our rating is capped at the

sovereign rating due to our

operational concentration in SA

▪ Moody’s National Scale rating

AAA.za & Global Scale rating is

Baa3

▪ Negative outlook due to negative

outlook on sovereign rating

Group LTV – 35.0% vs 33.7% at FY16

▪ Increased due to funding of investment activities mainly by way of debt in both RSA and GOZ

▪ RSA LTV – 33.4% vs. 30.5% at FY16

- Further investment in GOZ

- Acquisition of assets for the Healthcare Fund

- GWI investment

▪ GOZ LTV – 39.4% vs. 42.0% at FY16

- GMF transaction initially increased the LTV which has subsequently been decreased through asset sales

▪ Group Interest Cover Ratio increased to 3.5x from 3.3x

23

FY17 FY16

Unutilised committed facilities (Rbn) 4.5 5.9

Weighted average term of liabilities (years) 3.0 3.0

Weighted average term of fixed interest rate profile (years) (Incl. AUD & EUR CCIRS and IRS) 3.9 3.4

Weighted average interest rate (%) 9.2 9.3

Weighted average interest rate (%) (Incl. AUD & EUR CCIRS and EUR debt) 7.4 8.5

% debt at fixed interest rate 85.6 86.6

Unencumbered assets (incl. V&A Waterfront and listed investments) (Rbn) 44.2 37.2

Unsecured debt (Rbn) 12.5 8.1

Exchange rate risk

▪ ZAR has been relatively strong to the AUD and EUR for the majority of FY17

▪ Only 29% of GOZ dividends were hedged for FY18 at 30 June 2017,

subsequently taken advantage of the ZAR weakness and 64% now hedgedRSA facilities

PORTFOLIO UPDATE

Discovery, Sandhurst, Sandton

25

NET PROPERTY INCOME

CONSOLIDATED NET PROPERTY INCOME OVERVIEW

RSA68.0%

5.7%

25.3%GOZ

V&A

Waterfront

GWI

1.0% 26.3%Offshore

Greenfield Industrial Park, Cape Town

1. Includes 100% of RSA, 100% of GOZ, 50%of the V&A Waterfront and 26.9% of GWI.

(1)

26

PROPERTY PORTFOLIO (by value)

CONSOLIDATED PORTFOLIO VALUE OVERVIEW

RSA62.9%

7.1%

26.6%GOZ

V&A

Waterfront

3.4%

GWI 30.0%Offshore

Eastgate, Sandton

1. Includes 100% of RSA, 100% of GOZ, 50%of the V&A Waterfront and 26.9% of GWI.

(1)

PORTFOLIO UPDATE

SOUTH AFRICA

Key West, Krugersdorp

28

SOUTH AFRICA

Retail

▪ NPI still showing growth based on the successful renewal of

existing leases

▪ Renewal success rates deteriorated and renewal growth remains under

pressure, both as a result of new competition, which continues to

cannibalise trading densities in a weak macro economic environment,

with a very constrained consumer

▪ Most of our top 16 shopping centres have faced or will face competition

▪ 1.3% portfolio average trading density growth, weighted by GLA

▪ Vacancies are ticking up as tenants consolidate and reduce space. We

expect vacancies to peak in HY18 and settle thereafter at current levels

▪ 2.1% core vacancy vs. 2.0% FY16

▪ International retailers are not a natural “plug in”

▪ Arrears as a % of collectables improved slightly from 9.7% to 9.3%

▪ We need to keep our centres relevant and as part of our ongoing

strategy to improve our offering, we are giving Lakeside and Festival

Mall a facelift and we are reconfiguring the food courts at Kolonnade

and Waterfall Mall

▪ Long term strategy to consolidate and hold larger centres in the major

urban areas

FY17

Net property income (Rm) 2 307

Vacancy (%) 3.6

In force leases

Average gross rental (per m²/month) (R) 176

Average in force escalations (%) 7.2

Weighted average lease period (years) 3.3

Renewals

Total letting success rate (%) 81.4

Renewal success rate (%) 80.9

Weighted average renewal growth (%) 3.2

Weighted average future escalations on

renewals (%)7.3

Arrears

Arrears (Rm) 35.2

Provision for bad debts (Rm) 12.5

Bad Debts (I/S) (Rm) 5.0

29

FY17


Vacancy (%) 6.8

In force leases

Average gross rental (per m²/month) (R) 155

Average in force escalations (%) 8.1 −

Weighted average lease period (years) 3.8

Renewals


Renewal success rate (%) 61.4 −

Weighted average renewal growth (%) (1.8)


renewals (%)8.2 −

Arrears

Arrears (Rm) 12.8

Provision for bad debts (Rm) 5.2


Office

▪ Economic drivers are indicative of a sector under pressure

▪ Supply generally continues to exceed demand with consolidation

remaining a key theme

▪ Higher incentives and lower rental levels still the order of the day

to attract and retain tenants

▪ Renewal growth rates still negative but improved from -3.5%

▪ Growthpoint vacancies are well contained and are below the MSCI

office benchmark which is testament to our quality portfolio and

staff efforts


▪ Demand is for new P grade green buildings

▪ 76 Office buildings valued at R13bn green star rated by the Green

Building Council of South Africa (GBCSA)

▪ Discovery completion in sight with income positively impacting the

second half of FY18

▪ Earthworks at 144 Oxford Road in Rosebank commenced

▪ Asset management strategy is very important; need to buy correctly,

do the right developments and dispose of non-core properties

30

FY17


Vacancy (%) 3.1

In force leases

Average gross rental (per m²/month) (R) 50.0

Average in force escalations (%) 8.3

Weighted average lease period (years) 3.1 −

Renewals





renewals (%)8.1

Arrears

Arrears (Rm) 12.4

Provision for bad debts (B/S) (Rm) 8.4


Industrial

▪ The industrial asset class has come into its own, it has performed well

and is proving to be resilient and in favour, albeit that it is costing us to

attract and retain tenants

▪ Users are getting more sophisticated which is creating demand for

modern logistics facilities which is feeding the development pipeline

and the emergence of the asset class

▪ The renewal success rate is much improved from 63.5% to 78.5% with

growth in rentals on renewal from 0.5% to 2.3%

▪ Vacancies are significantly improved from 6.0% with the Paul Smit

Anderbolt property being the only large vacancy remaining

▪ The portfolio is diverse with an emphasis on warehousing and

distribution and a reduction in the manufacturing component

▪ Emergence of online retail in SA is real with many tenants playing in

this space

▪ Durban and Cape Town, with their access to the ports and limited

supply of land, are performing well with vacancies virtually non

existent and with real demand and growth

▪ Owning land is critical and we continue to “convert the dirt” with the

majority of developments pre-let

▪ The environment will, no doubt, get tougher but the portfolio is well

positioned with conservative rentals and values and as such we expect

to continue to extract value


31

Sustainability focus across all 3 sectors

▪ Total of 234 kilolitres of water saved in FY17

▪ 8 338.7 kWp installed solar capacity

▪ Via our innovative Green Leases we have shared more than R40m

in utilities cost savings, 50/50 with our clients since August 2013

▪ Greenovate Awards launched in 2015 which introduces university

students to green building thinking and recognises excellence

in application

▪ In the process of submitting our commitment to Scientific Based

Targets for carbon emissions

▪ Continued focus on waste data gathering and piloting of a waste

to compost project

32

FY17

Rm

FY16(1)

Rm

INCREASE/

DECREASE

Gross property revenue 8 079 7 589 6.5%

Retail 3 099 2 953 4.9%

Office 3 632 3 362 8.0%

Industrial 1 348 1 274 5.8%

Property expenses (1 901) (1 864) 2.0%

Retail (792) (814) (2.7%)

Office (819) (790) 3.7%

Industrial (290) (260) 11.5%

Net property income 6 178 5 725 7.9%

Adjustments (1 143) (897)

Acquisitions and developments (662) (431)

Trading Profit and Development Fees (91) -

Disposals (126) (211)

Investec rent (264) (255)

Adjusted “like-for-like” net property income 5 035 4 828 4.3%

Retail 1 937 1 810 7.0%

Office 2 174 2 112 2.9%

Industrial 924 906 2.0%

NET PROPERTY INCOME ANALYSIS

1. From 1 July 2016, Growthpoint Business Park was reclassified from an office building to an industrial building. The comparatives have been restated to reflect this adjustment.

PORTFOLIO UPDATE

V&A WATERFRONT

V&A Waterfront, Cape Town

34

V&A

WATERFRONT

Highlights

Silo & Canal Districts

▪ c. 100 000m² of mixed use space committed and let in

Silo District

▪ P grade office offering includes blue chip tenants such as

PwC, EY, Werksmans and British American Tobacco

▪ The Silo Hotel above the museum opened on time

▪ No 3 Silo residential units sold at an average price ofR83 000/m² with one penthouse remaining of the 79 units

Marine

▪ Cruise terminal improved passenger processing with the

turnaround of 68 000 passengers and 41 vessels

Workshop17

▪ Continued expansion of Workshop17 with 350 members and

85 businesses

Sustainability

▪ Leading in the sustainability space:

- 6 Star green rating for No 5 Silo building

- 16% of total energy consumption (kWh) saved since 2008

- Solar panels generated 1.58 MWh energy in 2016

- 25% reduction in water consumption since 2010

- 42% of total waste collected in 2016 was diverted from landfill

- First district cooling plant in South Africa utilising sea water

35

Property fundamentals

▪ Strong demand for office and retail space continues

▪ Vacancies across sectors remain very low

- Office 0.8%

- Retail 0.0%

- Residential 8.0%

▪ Tenants electing to stay at the V&A - growth in tenant

retention from 82.3% FY16 with strong renewal growth

▪ Stabilised residential portfolio of 259 units

▪ Footfall of 24m visitors

▪ Retail sales growth of 3% and trading density growth of 2%,

both coming off a high base, with international tourists up

35% year on year, but with a reduction in spending power

impacted by a stronger rand

▪ The V&A hotels trade on average 63% higher in revenue per

available room than the Cape Town city hotels across the

3 star to 5 star market

FY17

Net property income 522

Vacancy (%) 0.8

In force leases

Average gross rental (per m²/month) (R) 231.1

Average in force escalations (%) 8.0 −

Weighted average lease period (years) 8.0 −

Renewals





renewals (%)7.9

Arrears

Arrears (Rm) 35.5

Provision for bad debts (B/S) (Rm) 5.6


36

Development activity

Silo Precinct

▪ Zeitz MOCAA officially opening 22 September 2017

▪ 250 room Radisson Red hotel opens in September 2017

Canal Precinct

▪ c. 120 000 m² Canal District development includes:

- The Battery Park, 1 200 bay parkade with 3 acres of public

green space with expected completion early 2018

- Dock Road Junction with smaller office and retail pockets

creating strong leisure and street culture due for completion

in 2018

- c. 90 000 m² earmarked for further office, residential for sale

and to let, as well as other uses

Cruise terminal

▪ The second phase of the cruise terminal development

includes extended office & retail space

Masterplan update

▪ The Granger Bay District masterplan submitted to

The City for approval includes application for land

reclamation and further enhancement of the protection

of the coast

▪ Awaiting the City adjudication on the Foreshore

Freeway Project

PORTFOLIO UPDATE

GOZ

5 Murray Rose Ave, Sydney Olympic Park, NSW, Australia

38

GOZ

▪ A year of growth in assets, profit and

shareholder returns

▪ 4.9% increase in dividend per share to 21.5 cps

▪ 6.3% total shareholder return vs. -5.6%

S&P/ASX 300 A-REIT index

▪ 10.3% increase in net tangible asset per share

to AUD2.88

Property fundamentals

▪ Further cap rate compression driven by

limited supply, strong demand and low

interest rates, all coupled with global money

seeking investment opportunities in the

direct property market

▪ Significant disparity in economic outcomes by

State - growth centred on Australia's Eastern

seaboard (89% of GOZ portfolio)

▪ 94 921m² of space let (c. 9% of portfolio)

▪ 99% occupancy with low upcoming lease

expiries

Shareholder Return

39

Capital management

▪ Gearing reduced to 39.0% from 43.1% at FY16 following

strategic asset sales

▪ Good access to funding remains: AUD208m raised in March

2017 via the US Private Placement (USPP) market. The

issue was more than 4x oversubscribed with an average

interest rate of 5.34% and a tenor of 10.8 years, extending

GOZ’s debt maturity profile to 5 years

▪ All in cost of debt slightly higher at 4.3%

vs. 4.1% at FY16

▪ 75% of debt fixed vs. 65% at FY16 with a weighted average

fixed debt maturity of 6.4 years

▪ AUD1.3bn drawn debt

▪ AUD245.7m new equity issued

- AUD139.8 (GMF acquisition)

- AUD105.9 (DRIP)Guidance

▪ Guidance for FY18 dividend growth of

2.3% to 22.0 cps

PORTFOLIO UPDATE

GLOBALWORTH

Globalworth Tower, Bucharest, Romania

41

Transaction

▪ Acquired 24.3m shares for EUR186.4m

▪ Funded by EUR100m loans and EUR86.4m CCIRS

▪ 4.2 years weighted average term of debt

▪ EUR base interest rates are fixed for a weighted average

term of 9.9 years

▪ Transaction funded at a weighted average interest rate

of 2.62%

▪ Initial acquisition yield of 6% expected to grow significantly

over the next 3 - 5 years based on the following:

- Filling of vacancies, from 20% on acquisition, to 8% where

they are expected to stabilise

- Accretive c. EUR100m development pipeline at yields of

7% to 9%

- Refinancing of c. EUR400m of existing debt, through

EUR550m Eurobond, from 5% to 3% with a BB+ rating from

S&P and Ba2 rating from Moody’s

- Capital injection and surplus debt proceeds to fund

acquisitions of stabilised assets at yields of 7% to 8% in

Romania and the broader CEE region

GWI

42

Portfolio Activity

▪ Completed 3 acquisitions

- 57 000m² development property for Groupe Renault

Romania headquarters

- 16 300m² Building C Green Court let to global

corporates including General Motors, ABB

and Merck

- 68 000m² Dacia (Renault Group) Distribution facility

▪ Concluded significant leasing with global corporates

▪ New developments are on track and management has

been able to secure pre-leases

Surpassed Growthpoint’s due diligence

expectations and delivered on distribution guidance

▪ Delivered EUR0.22 dividend per share

▪ EUR0.22 dividend per share expected for HY18

PROPERTY INVESTMENT & DEVELOPMENT

Brooklyn Mall, Brooklyn, Pretoria

44

PROPERTY INVESTMENT

& DEVELOPMENT

Disposals

South Africa R1.9bn

V&A Waterfront (50%) -

GOZ R5.0bn

Acquisitions

South Africa R2.0bn

V&A Waterfront (50%) R113.0m

GOZ R1.7bn

Development & capex

South Africa R2.1bn

V&A Waterfront (50%) R557m

GOZ R473m

Trading Profits &

Development FeesR91m

Commitments

South Africa R3.1bn

V&A Waterfront (50%) R220m

GOZ R151m

CONCLUSION

Deloitte, La Lucia Ridge, Durban

46

PROSPECTS

South Africa

▪ Weakening property fundamentals

▪ Economic growth prospects insufficient to repair

lacklustre property fundamentals

▪ Potential debt downgrade

▪ Impact of competition in the retail portfolio

▪ Continued pressure on the office portfolio

▪ Increased cost of retaining tenants and attracting

new ones

▪ Continue to look for opportunities to grow internationally

▪ Capital raise for Africa Fund has yielded mixed results

with the first close targeted for Q4 2017

▪ Capital raise for the Healthcare Fund to commence

Q4 2017 with institutional investment expected H1 2018

▪ Exploring the optimum mechanism to dispose c. 5%

of the RSA portfolio

V&A Waterfront

▪ Healthy and strong core market supplemented by

tourism; as such we expect good growth and

demand with retail tempered by a strong ZAR

▪ c. 120 000m² bulk remaining with a good

development pipeline and exploring ways to acquire

additional bulk

47

GOZ

▪ Continue to pursue opportunities for growth in the

office segment in Sydney and Melbourne as a result of

declining vacancies, growing population, significant

infrastructure spending and Gross State GDP growth in

NSW and Victoria

▪ Deterioration in Western Australia property

fundamentals is creating opportunities

▪ Offshore demand is creating opportunities for further

asset sales

▪ Considering further M&A opportunities

▪ Taking advantage of development opportunities

▪ Dividend withholding tax expected to be higher

▪ Recent ZAR weakness will be beneficial should it persist

GWI

▪ Romania is performing well with the highest

European GDP growth rate, which is expected to

grow at +6% for 2017

▪ Strong demand from global corporates for

office space

▪ EU funding of EUR43bn approved for 2014-2020 and

expected to flow into the country

▪ Romanian cap rates higher than other prime markets

in CEE but expect further cap rate compression as

the property market continues to evolve

▪ Exploring opportunities in the CEE region for both

office and industrial asset acquisitions

48

▪ Dividend growth for FY18

should be similar to that

achieved for FY17

Dividend guidance

THANK YOU

Hilltop Industrial Park, Elandsfontein

ANNEXURES

Growthpoint Industrial Estate, Meadowdale, Germiston

51

ANNEXURE CONTENTS

02

03

04

05

06

07

08

01 Portfolio overview

Property investment activities

Expense to income ratios (IFRS)

Expense to income ratios (gross)

RSA diversified borrowings – nominal value

Loan to value and interest cover ratios

Loan exposure per financier RSA

Debt expiry profile per financier RSA

Fixed interest rate expiry profile RSA

Wealth created and distributed to stakeholders

Shares issued and beneficial shareholders holding > 2% at FY17

Key performance indicators RSA

Portfolio overview RSA (excl. V&A)

Split of RSA property portfolio

Acquisitions RSA

10

11

12

13

14

15

09

16 Disposals RSA

52

ANNEXURE CONTENTS

17

18

19

20

21

22

23

25

26

27

28

29

30

31

24

Developments & capital expenditure RSA

Commitments RSA

Non-current assets held for sale RSA

Retail overview RSA

Office overview RSA

Industrial overview RSA

GLA & vacancy reconciliation RSA

V&A Waterfront portfolio overview (50%)

Split of V&A Waterfront property portfolio

Developments & commitments V&A Waterfront (50%)

Net property & distributable income analysis V&A Waterfront

(50%)

V&A Waterfront overview

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

Key performance indicators V&A Waterfront

Key performance indicators GOZ

32 GOZ portfolio overview

53

ANNEXURE CONTENTS

33

34

35

36

37

38

Split of GOZ property portfolio

Acquisitions & disposals GOZ

Developments, commitments & non-current assets held for sale GOZ

Net property income analysis GOZ

GOZ overview

GLA & vacancy reconciliation GOZ

54

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

Number of properties 56 182 233 471 57 1

GLA (m²) 1 405 021 1 750 606 2 266 957 5 422 584 1 053 148 223 016

Vacancy (m²) 50 246 119 334 70 954 240 534 7 888 1 734

Vacancy (%) 3.6 6.8 3.1 4.4 1.3 0.8

Valuation (Rm) 29 588 34 732 12 586 76 906 32 536 8 705

Value per m² (excl. bulk) 21 036 18 454 5 068 13 529 30 894 36 810

Average gross rental (per m²/month) (R) 176 155 50 117 AUD237 (2) 231

Avrage annualised yield (%) 7.6 8.4 8.7 7.9 6.9 7.8

Average in force escalations (%) 7.2 8.1 8.3 7.8 3.3 8.0

Weighted average lease period (years) 3.3 3.8 3.1 3.6 6.1 8.0

Renewal success rate (%) 80.9 61.4 78.5 73.6 81.4 98.2

Weighted average renewal lease period (years) 4.3 3.4 2.9 3.3 3.3 3.0

Weighted average renewal growth (%) 3.2 (1.8) 2.3 1.0 (7.7) 7.9


renewals (%)7.3 8.2 8.1 7.8 3.3 7.9

Total letting success rate (%) 81.4 77.4 91.5 85.3 85.2 98.3

ANNEXURE 01:PORTFOLIO OVERVIEW

1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%.

2. Based on net rental per annum.

3. Measurements and ratios are based on income and not GLA (when compared to RSA).

55

ANNEXURESRETAIL

Rm

OFFICE

Rm

INDUSTRIAL

Rm

RSA TOTAL

Rm

GOZ(1)

Rm

TOTAL

Rm

V&A(1)

Rm

Opening balance – 1 July 2016(²) 29 210 32 655 11 887 73 752 30 938 104 690 7 766

Purchase price of acquisitions 15,34 - 1 756 116 1 872 5 047 6 919 -

Selling price of disposals 16,34 (607) (1 131) (223) (1 961) (1 730) (3 691) (113) (3)

Developments and capex 17,27,35 504 1 160 473 2 137 473 2 610 557

Fair value adjustment 481 292 333 1 106 848 1 954 495

Foreign currency translation - - - - (3 040) (3 040) -

Total 29 588 34 732 12 586 76 906 32 536 109 442 8 705

Long-term property assets 29 415 34 732 12 557 76 704 31 497 108 201 8 705

Classified as held for sale 19,35 173 - 29 202 1 039 1 241 -

Commitments 18,27,35 962 1 905 195 3 063 151 3 213 220

ANNEXURE 02:PROPERTY INVESTMENT ACTIVITIES

1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%.

2. From 1 July 2016, Growthpoint Business Park was reclassified from an office building to an industrial building. The comparatives have been restated to reflect this adjustment.

3. Disposal relates to the sale of 50% of the portion of Waterway House that is occupied by BAT, to Atterbury.

56

24.0% 24.5% 23.5%

3.8% 2.7% 3.6%

FY15 FY16 FY17

Operating Expense Ratio Property Expense Ratio

11.6% 12.0% 13.0%

4.4% 4.8%4.8%

FY15 FY16 FY17


SOUTH AFRICA GOZ

27.8% 27.7% 28.1%

2.9% 3.1% 3.3%

FY15 FY16 FY17


V&A WATERFRONT

ANNEXURE 03: EXPENSE TO INCOME RATIOS (IFRS)

27.2%27.8% 27.1% 30.8%30.7% 31.4% 16.8%16.0% 17.8%

57

35.0% 36.2% 35.0%

3.2% 2.3%3.0%

FY15 FY16 FY17


12.6% 13.0% 13.9%

4.3% 4.7%4.8%

FY15 FY16 FY17


SOUTH AFRICA GOZ

33.2% 34.0% 35.6%

2.7%2.9%

3.0%

FY15 FY16 FY17


V&A WATERFRONT

ANNEXURE 04: EXPENSE TO INCOME RATIOS (GROSS)*

* This ratio is presented where expense recoveries have been reclassified as revenue as per SA Reit Association Best Practice guidance.

38.5%38.2% 38.0% 36.9%35.9% 38.5% 17.7%16.9% 18.7%

58

15 852 14 880 15 276

2 0531 803 1 540

4 4804 286

5 248

2 6593 284

6 824400

400

400

FY15 FY16 FY17

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

(1)

ANNEXURE 05:RSA DIVERSIFIED BORROWINGS — NOMINAL VALUE

Debt capital market 14.9%

Traditional bank debt

85.1%

Unsecured32.3%

Secured67.7%



88.0%

Unsecured29.6%

Secured70.4%



75.3%

Unsecured42.6%

Secured57.4%

R24 653mR25 444m R29 288m

(1)

1. The total value excludes the deferred payments of R85m (FY16: R165m) on the Samrand land purchased. The outstanding payment is due in Sept 2017.

59

32.1%30.5%

33.4%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

FY15 FY16 FY17

LTV Interest cover ratio (incl V&A)

33.2% 33.7% 35.0%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

FY15 FY16 FY17

LTV Interest cover ratio

SOUTH AFRICA GROUP

36.8%

42.0%39.4%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

FY15 FY16 FY17

LTV Interest cover ratio

GOZ(2)

ANNEXURE 06:LOAN TO VALUE AND INTEREST COVER RATIOS

3.2x3.4x 3.8x3.7x 3.3x3.4x3.9x 3.5x3.4x

1. Nominal value of interest-bearing borrowings (net of cash), divided by the fair value of property assets, including investment property held for sale. For RSA and group the 50% equity investment in V&A Waterfront and

other equity-accounted and listed investments were included in the fair value of property assets.

2. Calculated in Rands.

(1) (1)(1)

60

ANNEXURE 07:LOAN EXPOSURE PER FINANCIER RSA

21%

25%

22%

17%

5%

5%

2%2%

1%

RMB

Standard Bank

OMSFIN

LibFin

Investec

ABSA

China Construction BankJSE (Corporate Bonds)

Nedbank

61

0%

5%

10%

15%

20%

25%

FY18 FY19 FY20 FY21 FY22 FY23 FY24

ABSA China Construction Investec JSE (Corporate Bonds) LibFin Nedbank Omsfin RMB Standard Bank

ANNEXURE 08: DEBT EXPIRY PROFILE PER FINANCIER RSA

15% 18% 23% 16% 16% 3% 9%

62

0%

5%

10%

15%

20%

25%

Floating FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29

ANNEXURE 09: FIXED INTEREST RATE EXPIRY PROFILE RSA

14% 9% 11% 17% 3% 6% 3% 0% 3%9% 21% 2%2%

63

463 625 669

4 2325 072

5 600

329

450 471

2 215

2 710

2 922747

941

1 016

74

418

164

0

1 500

3 000

4 500

6 000

7 500

9 000

10 500

12 000

FY15 FY16 FY17

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

ANNEXURE 10: WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS*

R10 216mR8 060m R10 842mRm

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

9.3%

27.5%

4.1%

52.5%

5.7%

0.9%

9.2%

26.5%

4.4%

49.7%

6.1%

4.1% 9.4%

27.0%

4.3%

51.6%

6.2%

1.5%

64

SHARES

Opening balance 1 July 2016 2 786 093 366

Dividend reinvestment (September 2016) 44 023 040

Dividend reinvestment (March 2017) 58 346 176

Closing balance 30 June 2017 2 888 462 582

Treasury shares held for staff share scheme (27 759 987)

Shares in issue (net of treasury shares) 2 860 702 595

% HOLDING SHARES HELD

Government Employees Pension Fund 13.3 384 361 494

Stanlib Asset Management Ltd 6.1 176 177 821

Southern Palace Properties Pty Ltd 5.6 160 942 921

Investec Asset Management (Pty) Ltd 5.1 147 899 510

Old Mutual Group 4.3 123 103 328

Prudential Portfolio Managers 4.0 116 699 191

The Vanguard Group 3.8 108 984 712

Sesfikile Capital 2.8 81 885 120

Coronation Fund Managers Ltd 2.7 78 417 247

BEE Consortium 2.7 77 666 667

Momentum Asset Management 2.6 75 906 033

Sanlam Investment Management 2.6 74 222 230

Meago Asset Managers 2.6 73 825 229

Blackrock Institutional Trust Company 2.0 58 985 663

Total shareholders holding >2% 60.2 1 739 077 166

Other 39.8 1 149 385 416

Total 100.0 2 888 462 582

Foreign shareholding: 28% of institutional ownership and 22% of total shares

issued

ANNEXURE 11: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY17

65

FY17 FY16

Vacancies (%) 4.4 5.7

Total arrears (Rm) 60.4 64.3

Provision for bad debts (B/S) (Rm) 26.1 29.8

Bad debts (I/S) (Rm) 13.2 15.9

Average in force escalations (%) 7.8 7.8

Renewal success rate (%) 73.6 68.7

Total letting success rate (%) 85.3 82.4

Weighted average renewal growth (%) 1.0 1.1


renewals (%)7.8 7.8

Number of employees 630 657

Net property income per employee (R) 9 806 349 8 713 851

ANNEXURE 12:KEY PERFORMANCE INDICATORS RSA

The Towers, Sandton

66

FY15 FY16 FY17

Retail Office Industrial

19.9%

47.3%

32.8%

17.2%

45.5%

37.3%

16.6%

46.0%

37.4%

FY15 FY16 FY17


14.6%

46.0%

39.4%

16.4%

45.2%

38.4%

15.3%

45.1%

39.6%

NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE

FY15 FY16 FY17


48.6%

39.1%

49.5%

38.6%

11.9%

48.6%

39.0%

12.4%

NUMBER OF PROPERTIES

ANNEXURE 13: PORTFOLIO OVERVIEW RSA (EXCL.V&A)

R4 479m R5 725m R6 178m 471 467 471 R71 550m R73 752m R76 906m

12.3%

67

ANNEXURE 14: SPLIT OF RSA PROPERTY PORTFOLIO

45%

39%

16%

VALUE VALUEGLA GLA

32%

26%

42%

54%

22%

10%

7%4%

2% 1%

58%21%

11%

5%3%

1% 1%

Office Retail IndustrialGreater JHB Western Cape Kwazulu-Natal

Pretoria Eastern Cape North West Other

68

SECTOR DATE

PURCHASE PRICE

Rm YIELD

Acquisitions

Gateway Private Hospital, Umhlanga Ridge, Durban Healthcare Fund(1) November 2016 559.2 9.5%

Hillcrest Private Hospital, Assagay, Durban Healthcare Fund(1) November 2016 550.4 9.5%

Louis Leipoldt Hospital, Bellville, Cape Town Healthcare Fund(1) February 2017 385.5 8.3%

Site B, Foreshore, Cape Town Office March 2017 88.7 Land

Remaining 50% of 144 Oxford Road, Rosebank Office March 2017 69.7 Land

Ncondo Place, Umhlanga Ridge, Durban Office March 2017 44.2 Land

Draper on Main, Claremont, Cape Town Office August 2016 25.8 9.1%

31 Impala Road, Chislehurston, Sandton Office December 2016 20.3 5.5%

29 Richefont, Umhlanga Ridge, Durban Office September 2016 12.5 Land

28 Sacks Circle, Bellville, Cape Town Industrial May 2017 104.2 9.6%

Remaining 30% of Wadeville, Germiston Industrial July 2016 12.2 Land

Total 1 872.7

ANNEXURE 15: ACQUISITIONS RSA

1. Properties acquired for Healthcare Fund and currently included in the office portfolio.

69

SECTOR DATE

SELLING PRICE

Rm

PROFIT/(LOSS)

ON COST

Rm

PROFIT/(LOSS)

ON BOOK VALUE

Rm YIELD

Disposals

Picbel Parkade, CBD, Cape Town Retail March 2017 271.3 160.4 (0.4) 10.1%

Vaal Mall - 11.19%, Vanderbijlpark Retail April 2017 197.6 (1.0) (0.5) 7.4%

Grayston Shopping Centre, Kramerville, Sandton Retail May 2017 138.0 47.6 9.5 7.9%

Harrowdene Office Park, Woodmead, Johannesburg Office March 2017 845.9 21.4 (27.7) 2.7%

16 Fricker Road, Illovo, Sandton Office May 2017 71.9 1.2 8.4 3.3%

61 Central, Houghton, Johannesburg Office February 2017 64.5 35.2 5.2 7.3%

Thebe House, Rosebank, Johannesburg Office June 2017 52.0 39.4 1.6 10.3%

Bremerton Office Park, Newton Park, Port Elizabeth Office December 2016 51.0 (4.6) (3.0) 9.8%

295 Florida Road, Morningside, Durban Office November 2016 34.5 13.1 4.4 8.4%

Woodstock, Woodstock, Cape Town Office October 2016 10.7 2.1 2.9 9.0%

Redwood, Roodekop, Alberton Industrial December 2016 78.5 41.8 20.9 7.3%

Kya Sands, Kya Sands, Randburg Industrial April 2017 45.8 11.9 (0.3) 9.4%

Laser Isipingo, Isipingo, Durban Industrial November 2016 44.0 24.1 2.4 9.5%

Osram, Randjiespark, Midrand Industrial August 2016 28.0 9.7 4.2 10.0%

Metro Cash & Carry Krugersdorp, Krugersdorp Industrial December 2016 12.4 (1.7) (0.2) 5.3%

Snowy Owl, Arcadia, Pretoria Industrial January 2017 7.6 (3.1) - 11.4%

Erf 321 Wadeville, Wadeville, Germiston Industrial March2017 3.7 1.8 1.6 10.7%

Portland, Wadeville, Germiston Industrial June 2017 2.8 1.8 0.1 8.5%

Total 1 960.2 401.1 29.1

ANNEXURE 16: DISPOSALS RSA

70

SECTOR

ESTIMATED COMPLETION

DATE

FY17

Rm

Developments and Capital Expenditure(1)

Greenacres, Greenacres, Port Elizabeth Retail July 2017 140.5

Vaal Mall (66.6%), Vanderbijlpark, Johannesburg Retail December 2016 90.0

Hillcrest Corner (50%), Hillcrest, Durban Retail June 2017 49.4

KeyWest Shopping Centre, Krugersdorp, Johannesburg Retail November 2016 30.3

Other, below R30m Retail 193.8

Total Retail 504.0

Discovery Head Office (55%), Sandhurst, Sandton Office November 2017 669.2

Lakeside 1, Centurion, Pretoria Office April 2019 46.8

Anslow Phase 2, Bryanston, Sandton Office July 2016 39.7

Other, below R30m Office 404.3

Total Office 1 160.0

Samrand Development, Midrand Industrial July 2017 75.5

M1 Place, Eastgate, Sandton Industrial November 2016 61.5

Growthpoint Industrial Estate, Erf 307, Meadowdale, Germiston Industrial Dec 2016 48.6

Saligna, Boksburg Industrial July 2017 45.6

Montague Business Park (25%), Montague Gardens, Cape Town Industrial 39.0

Other, below R30m Industrial 202.8

Total Industrial 473.0

Total 2 137.0

Development Expenditure 1 451.0

Capital Expenditure 686.0

ANNEXURE 17: DEVELOPMENTS & CAPITAL EXPENDITURE RSA

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

71

Commitments SECTOR

ESTIMATED

COMPLETION DATE

FY17

Rm

Developments(1) 2 051.0

River Square Shopping Centre, Three Rivers, Vereeniging Retail November 2017 46.9

144 Oxford Road, Rosebank Office October 2019 647.1

Exxaro Head Office and AECOM, Centurion Office May 2019 488.6

Discovery Head Office (55%), Sandhurst, Sandton Office April 2018 399.0

Draper on Main, Cape Town Office March 2019 119.2

Boulevard, Umhlanga Ridge, Umhlanga Rocks, Durban Office April 2018 76.4

32 on Kloof, Cape Town Office June 2018 45.1

Bakers Transport, Samrand, Midrand Industrial February 2018 77.5

Fast & Furious, Growthpoint Industrial Estate, Meadowdale, Germiston Industrial January 2018 56.4

Other below R30,0m Various Various 94.8

Acquisitions 1 011.6

Remaining 58% of N1 City Mall Goodwood, Cape Town Retail November 2017 881.6

Exxaro Corporate Centre & Vacant land, Pretoria (2) Office 130.0

Total 3 062.6

ANNEXURE 18: COMMITMENTS RSA


2. Property acquired for Trading and Development purposes. The transaction is subject to Competition Commission approval and as such estimated completion date is unknown.

72

SECTOR

FY17

Rm

Properties Held For Sale

OK Empangeni, Empangeni, Durban Retail 172.5

Whitworth, Heriotdale ext 8, Johannesburg Industrial 16.0

Greenhills Centre, Elandsfontein, Germiston Industrial 13.4

Total RSA 201.9

ANNEXURE 19: NON-CURRENT ASSETS HELD FOR SALE RSA

73

TOP 10 PROPERTIES BY VALUE

FAIR VALUE

Rm

GLA

m²

Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria 2 247 55 968

Festival Mall, Kempton Park, Johannesburg 1 610 83 387

Geenacres, Greenacres, Port Elizabeth 1 514 46 968

Waterfall Mall, Rustenburg 1 490 49 234

Lakeside Mall, Benoni, Johannesburg 1 447 65 364

Vaal Mall (66.6%), Vanderbijlpark, Johannesburg 1 272 44 172

La Lucia Mall, La Lucia, Durban 1 247 37 296

Kolonnade (50%), Montana Park, Pretoria 1 184 38 100

Bayside Mall, Table View, Cape Town 1 125 45 216

The Constantia Village, Constantia, Cape Town 1 088 20 391

Sub Total 14 224 486 096

Balance of the sector 15 364 918 925

Total for the sector 29 588 1 405 021

TOP 10 TENANTS

GLA(1)

m²

Edcon Holdings Ltd 124 097

The Foschini Group Ltd 57 321

Shoprite Holdings Ltd 139 060

Pepkor Holdings Ltd 56 896

Pick n Pay Stores Ltd 118 256

Mr Price Group Ltd 55 780

Truworths International Ltd 32 688

Massmart Holdings Ltd 66 589

Woolworths Holdings Ltd 87 127

Clicks Group Ltd 28 140

Sub Total 765 954

Balance of the sector 588 821

Total for the sector (excluding vacancies) 1 354 775

14.1

10.1

16.5

18.9

18.2

14.4

4.2

3.6

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Monthly

Vacant

9.2

10.2

17.2

18.8

21.2

17.1

3.5

2.8

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Monthly

Vacant

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

ANNEXURE 20: RETAIL OVERVIEW RSA

1. Ranked in terms of gross monthly rental.

74


FAIR VALUE

Rm

GLA

m²

Investec, 100 Grayston Drive, Sandton, Johannesburg 2 204 70 945

The Woodlands, Woodmead, Johannesburg 1 707 124 122

Constantia Office Park, Roodepoort, Johannesburg 1 075 72 834

Inanda Greens, Wierda Valley, Sandton, Johannesburg 971 40 774

The Place, Sandton, Johannesburg 954 34 682

MontClare Place, Claremont, Cape Town 629 29 645

Inyanda 1,3 and 4, Parktown North, Johannesburg 487 23 196

Country Club Estate, Woodmead, Johannesburg 486 33 142

Golf Park, Bellville, Cape Town 460 28 263

The Towers (50%), Sandton, Johannesburg 443 12 913

Sub Total 9 416 470 516

Balance of the sector 25 316 1 280 090


TOP 10 TENANTS

GLA(1)

m²

Investec Bank Ltd 83 781

Deloitte (South Africa) 46 145

Absa Bank Ltd 25 509

Transnet 33 066

Business Connexion (Pty) Ltd 34 454

Anglogold Ashanti Ltd 19 381

EOH Holdings Ltd 33 660

Firstrand Bank Ltd 17 372

Edward Nathan Sonnenbergs Inc 14 889

Nestle South Africa (Pty) Ltd 11 986

Sub Total 320 243

Balance of the sector 1 311 029


18.8

9.4

12.5

15.8

17.2

17.2

2.3

6.8

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Monthly

Vacant

24.2

8.5

11.9

16.0

16.4

14.8

2.9

5.3

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Monthly

Vacant


ANNEXURE 21: OFFICE OVERVIEW RSA


75


FAIR VALUE

Rm

GLA

m²

Growthpoint Business Park, Midrand 644 68 685

Montague Business Park (25%), Montague Gardens, Cape Town 345 30 885

Hilltop Industrial Estate, Elandsfontein, Johannesburg 333 76 283

Isobar, Isando, Kempton Park, Johannesburg 222 47 195

Central Park, Cape Town, Elsiesrivier, Cape Town 205 49 135

Adcock Ingram, Midrand 202 21 536

Omni Park, Aeroton, Johannesburg 190 41 331

Rivonia Crossing 2, Sunninghill, Sandton 187 19 778

N1 Business Park (20%), Midrand 172 21 567

Greenfield Industrial Park, Airport Industrial, Cape Town 160 21 815

Sub Total 2 660 398 210

Balance of the sector 9 926 1 868 747


TOP 10 TENANTS

GLA(1)

m²

The Bidvest Group Ltd 58 590

Adcock Ingram Holdings Ltd 27 280

Scania SA (Pty) Ltd 23 513

Consolidated Steel Industries (Pty) Ltd 55 640

Allied Electronic Corporation Ltd 30 413

Distell Ltd 45 636

Pioneer Foods Ltd 20 122

Barloworld Ltd 18 516

Continuity SA (Pty) Ltd 11 407

DCD Group (Pty) Ltd 77 239

Sub Total 368 356

Balance of the sector 1 827 647


12.9

12.5

8.1

16.8

22.9

19.1

4.6

3.1

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Monthly

Vacant

12.8

12.1

9.7

15.1

24.2

19.5

3.8

2.8

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Monthly

Vacant


ANNEXURE 22: INDUSTRIAL OVERVIEW RSA


76

TOTAL GLA

m²

VACANT AREA

m²

VACANCY

%

Balance as at 1 July 2016 5 471 050 311 559 5.7

GLA adjustments (61 235) (59 776)

Disposals (109 364) (2 111)

Acquisitions 80 387 495

Developments and extensions 44 168 42 294

Leases expired in the period (1) 1 173 913

Renewals of expired leases (2) (864 234)

New letting of vacant space (534 988)

Leases terminated 173 826

Balance as at 30 June 2017 5 425 006 240 978 4.4

ANNEXURE 23: GLA & VACANCY RECONCILIATION RSA

1. 21.5% of opening balance GLA expired during the half year under review compared to 22.6% for FY16.

2. Retention of 73.6% compared to 68.7% for FY16.

77

V&A Waterfront, Cape Town

FY17 FY16

Vacancies (%) 0.8 1.4


Provision for bad debts (B/S) (Rm) 5.6 8.6

Bad debts (I/S) (Rm) 2.7 1.4

Average in force escalations (%) 8.0 8.0



Weighted average renewal growth (%) 7.9 6.0

Weighted average future escalations on renewals (%) 7.9 8.0

Number of employees (100%) 188 186


ANNEXURE 24:KEY PERFORMANCE INDICATORS V&A WATERFRONT (50%)

78

51.3%54.1%

21.6%

18.6%9.5%

8.9%17.6%

18.4%

FY15 FY16 FY17

Retail Office Fishing & Industrial Hotel & Residential

49.6%

53.9%52.6% 50.5%

20.9%

23.8%24.5%

6.1%

5.8%

6.8%

11.6%

11.4%

12.5%

7.5%

6.4%

5.7%

FY15 FY16 FY17

Retail Office Fishing & Industrial Hotel & Residential Bulk

NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE

ANNEXURE 25: V&A WATERFRONT PORTFOLIO OVERVIEW (50%)

R462mR399m R522m R6 761m R8 705mR7 766m

21.8%

9.6%

19.0%

79

ANNEXURE 26: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO

51%

24%

7%

12%

6%

50%

22%

9%

19%22%

28%26%

24%

94%

6%

PROPERTY PORTFOLIO

BY VALUE

DEVELOPED VS.

UNDEVELOPED BY VALUE

PROPERTY PORTFOLIO

BY GLA

NET PROPERTY

INCOME

Developed UndevelopedRetail Office Fishing & Industrial Hotel & Residential Bulk

80

SECTOR

ESTIMATED COMPLETION

DATE

FY17

Rm

Developments and capital expenditure (1)

Waterway House (EY & Ferrari) Office & Retail May 2017 159.6

Grain Silo - Zeitz MOCAA and The Silo Hotel Museum & Hotel September 2017 84.6

Battery Park Parkade April 2018 52.9

No 6 Silo - Radisson Red Hotel Hotel September 2017 117.6

Other below R30m Various Various 142.9

Total 557.6

Commitments

Battery Park Parking April 2018 90.6

Dock Road Junction Office September 2018 37.1

Other below R30m Various Various 92.6

Total 220.3

ANNEXURE 27: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%)


81

FY17

Rm

FY16

Rm

INCREASE/

(DECREASE)

Gross property revenue 726 639 13.6%

Property expenses (204) (177) 15.3%

Net property income 522 462 13.0%

Other operating expenses (24) (20) 20.0%

Net finance costs (18) (11) 63.6%

Other non-distributable amounts (1) (2) (50.0%)

Distributable income 479 429 11.7%

Adjustments (19) -

Silo No 5 – PwC & Werksmans (11) -

Waterway House – EY & Ferrari (8) -

Adjusted “like-for-like” distributable income 460 429 7.3%

ANNEXURE 28: NET PROPERTY & DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%)

82

TOP 10 TENANTS (100%)

GLA(1)

m²

Allan Gray (Pty) Ltd 18 520

Nedbank Group Ltd 25 432

Legacy Hotels 16 226

Edcon Holdings Ltd 7 518

Tourvest Holdings Ltd 3 052

Sun International Hotels 17 100

Newmark Hotels 7 564

Woolworths Holdings Ltd 7 682

The Foschini Group Ltd 3 014

National Department of Public Works 17 324

Subtotal 123 432

Balance of V&A 319 132

Total for V&A Waterfront (excluding vacancies) (100%) 442 564

53

11

5

8

10

13

0

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Vacant

LEASE EXPIRY (% OF GLA)

ANNEXURE 29: V&A WATERFRONT OVERVIEW

33

11

6

11

18

21

0

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

Vacant

LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)


83

TOTAL GLA

m2

VACANT AREA

m2

VACANCY

%

Balance as at 1 July 2016 206 838 2 993 1.4%

GLA adjustments - -

Developments and extensions 16 178 15 701

Leases expired in the period (1) 81 187

Renewals of expired leases (2) (79 735)

New letting of vacant space (18 694)

Leases terminated 282

Balance as at 30 June 2017 223 016 1 734 0.8%

ANNEXURE 30: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%)

1. 39.3% of opening balance GLA expired during the year under review compared to 10.1% for FY16.

2. Retention of 98.2% compared to 82.3% for FY16.

84

FY17 FY16

Vacancies (%) (1) 1.3 1.0


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



Weighted average renewal growth (%) (7.7) (0.5)

Weighted average future escalations on renewals (%) (2) 3.3 4.0

Number of employees 23 17


ANNEXURE 31:KEY PERFORMANCE INDICATORS GOZ

1. Measurements and ratios are based on income and not GLA (when compared to RSA).

2. Weighted average escalation on entire portfolio WARR 3.3%.

Green Square Close, Fortitude Valley, QLD, Australia

85

50.6%48.5%

61.3%

49.4%

51.5%

38.7%

9.55

10.57

10.26

9

9.2

9.4

9.6

9.8

10

10.2

10.4

10.6

10.8

0.00

500.00

1000.00

1500.00

2000.00

2500.00

FY15 FY16 FY17

Office Industrial average exchange rate

1720

26

36

3831

FY15 FY16 FY17

NET PROPERTY INCOME NUMBER OF PROPERTIES

50.2%

55.9%

66.0%

49.8%

44.1%

34.0%

9.4

11.04

10.04

8.5

9

9.5

10

10.5

11

11.5

0.00

500 0.00

100 00.0 0

150 00.0 0

200 00.0 0

250 00.0 0

300 00.0 0

350 00.0 0

FY15 FY16 FY17

Office Industrial closing exchange rate

PROPERTY PORTFOLIO VALUE

ANNEXURE 32:GOZ PORTFOLIO OVERVIEW

R1 913mR1 631m R2 293m 5853 57R30 938mR22 024m R32 536m

NUMBER OF PROPERTIES

AUD ZAR AUD ZAR

Office Industrial Office Industrial Office Industrial

86

ANNEXURE 33:SPLIT OF GOZ PROPERTY PORTFOLIO

66%

34%29%

28%

26%

6%

5%5%

1%

28%

72%

45%

18%

14%

12%

8%2%

1%

VALUE (AUD) VALUEGLA GLA

Office IndustrialVictoria Queensland New South Wales South Australia

ACT Western Australia Tasmania

87

SECTOR DATE

FY17

Rm

FY17

AUDm

Acquisitions

15 Green Square Close, Fortitude Valley, Queensland Office October 2016 1 452.2 138.2

3 Murray Rose Avenue, Sydney Olympic Park, New South Wales Office October 2016 1 042.6 99.1

5 Murray Rose Avenue, Sydney Olympic Park, New South Wales Office October 2016 1 034.3 98.4

Vantage, 109 Burwood Road, Hawthorn, Victoria Office October 2016 852.5 81.3

Quad 3, 102 Bennelong Parkway, Sydney Olympic Park, New South Wales Office October 2016 335.1 31.9

Quad 2, 6 Parkview Drive, Sydney Olympic Park, New South Wales Office October 2016 330.2 31.4

Total 5 046.9 480.3

ANNEXURE 34:ACQUISITIONS & DISPOSALS GOZ

Disposals

28 Bilston Drive, Wodonga, Victoria Industrial December 2016 722.4 69.2

99 and 101-103 William Angliss Drive, Laverton North, Victoria Industrial December 2016 289.3 27.7

213-215 Robinsons Road, Ravenhall, Victoria Industrial December 2016 281.3 27.0

365 Fitzgerald Road, Derrimut, Victoria Industrial December 2016 186.2 17.8

670 Mcarthur Avenue, Pinkenba, Queensland Industrial September 2016 107.3 9.9

29 Business Street, Yatala, Queensland Industrial March 2017 96.2 10.3

10 Gassman Drive, Yatala, Queensland Industrial June 2017 47.2 4.5

Total 1 729.9 166.4

88

SECTOR

ESTMATAED

COMPLETION DATE

FY17

Rm

FY17

AUDm

Developments and Capital Expenditure

Building C, 211 Wellington Road, Mulgrave, Victoria Office October 2016 318.0 29.5

Other Various 155.0 17.5

Total 473.0 47.0

ANNEXURE 35: DEVELOPMENTS, COMMITMENTS & NON-CURRENT ASSETS HELD FOR SALE GOZ

Commitments

1 Charles Street, Paramatta, New South Wales Office June 2019 60.2 6.0

Other Various 90.3 9.0

Total 150.5 15.0

Non-Current Assets Held For Sale

1231-1241 Sandgate Road, Nundah, Queensland Office 1 038.6 103.5

Total 1 038.6 103.5

89

FY17

AUDm

FY16

AUDm

Increase /

(Decrease)

Gross property revenue 261.4 208.6 25.3%

Property expenses (38.1) (27.5) 38.5%

Net property income 223.3 181.1 23.3%

Adjustments (65.7) (25.5)

Acquisitions and developments (59.5) (12.2)

Disposals (6.2) (13.3)

Adjusted “like-for-like” net property income 157.6 155.6 1.3%

Office 84.9 82.6 2.8%

Industrial 72.7 73.0 (0.4%)

ANNEXURE 36:NET PROPERTY INCOME ANALYSIS GOZ

90


FAIR

VALUE

Rm

GLA

m²

1 Charles Street, Parramatta, NSW Office 3 046 32 356

70 Distribution Street, Larapinta, QLD Industrial 2 057 76 109

75 Dorcas Street, South Melbourne, VIC Office 1 806 23 811

20 Colquhoun Road, Perth Airport, WA Industrial 1 533 80 374

Optus Centre, 15 Green Square Close, QLD Office 1 385 16 442

333 Ann Street, Brisbane, QLD Office 1 162 16 369

Building C, 219 - 247 Pacific Highway, Artarmon, NSW Office 1 151 14 496

1231-1241 Sandgate Road, Nundah, QLD Office 1 039 12 980

3 Murray Rose Avenue, Sydney Olympic Park, NSW Office 973 13 423

5 Murray Rose Avenue, Sydney Olympic Park, NSW Office 973 12 386

Sub Total 15 125 298 746

Balance of GOZ 17 411 754 402

TOTAL FOR GOZ 32 536 1 053 148

TOP 10 TENANTS

GLA(1)

m²

Woolworths 350 185

NSW Police Department 32 356

Commonwealth of Australia 24 370

Linfox 58 077

GE Capital Finance Australasia(²) 15 957

Samsung Electronics 13 423

Lion 12 317

Energex 8 754

Australia and New Zealand Banking Group 13 744

Jacobs Group 8 207

Sub Total 537 390

Balance of GOZ 507 870

TOTAL FOR GOZ (excluding vacancies) 1 045 260

54

21

6

11

3

4

1

FY23 and beyond

By FY22

By FY21

By FY20

By FY19

By FY18

VacantLEASE EXPIRY (% OF INCOME)

ANNEXURE 37:GOZ OVERVIEW


2. Leases to Country Road/ David Jones, with a weighted average lease term commencement of 14.5 years, will replace the existing lease to GE Capital Finance Australasia upon the lease expiry.

91

TOTAL GLA

m2

VACANCY(1)

%

Balance as at 1 July 2016 1 109 545 1.0

GLA adjustments (477)

Disposals (120 963)

Acquisitions, developments and extensions 65 043

Balance as at 30 June 2017 1 053 148 1.3

ANNEXURE 38:GLA & VACANCY RECONCILIATION GOZ

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

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