group audited annual financial statements · sa corporate real estate limited (company...

GROUP AUDITED ANNUAL FINANCIAL STATEMENTSI N D U S T R I A L . R E T A I L . O F F I C E . R E S I D E N T I A L . R E S T O F A F R I C A

Page

DIRECTORS' RESPONSIBILITIES AND APPROVAL................. 1

DECLARATION BY THE SECRETARY.................................... 1

DIRECTORS’ REPORT....................................................... 2

REPORT OF THE AUDIT COMMITTEE................................... 5

INDEPENDENT AUDITOR'S REPORT.................................... 9

STATEMENT OF FINANCIAL POSITION.............................. 13

STATEMENT OF COMPREHENSIVE INCOME........................ 14

STATEMENT OF CHANGES IN EQUITY............................... 15

STATEMENT OF CASH FLOWS.......................................... 17

NOTES TO THE GROUP AUDITED ANNUAL FINANCIAL

STATEMENTS.................................................................. 18

APPENDIX A: STATUTORY INFORMATION............................ 84

APPENDIX B: PROPERTY PORTFOLIO REVIEW...................... 85

APPENDIX C: PROPERTY PORTFOLIO.................................. 87

SA CORPORATE REAL ESTATE LIMITEDRegistration nr. 2015/015578/06

CONTENTS TO THEGROUP AUDITED ANNUALFINANCIAL STATEMENTSFor The Year Ended 31 December 2019

Top pictureRosewood, Cnr Raven and NightingaleRoads, Randfontein, GautengAbove pictureMpumelelo, 56, 58 & 60 Davies StreetDoornfontein, Gauteng

SA Corporate Real Estate LimitedAnnual Financial Statements for the year ended 2019

Terence Rory MackeyChief Executive Officer

The directors of SA Corporate Real Estate Limited (“the Company”) are responsible for the preparation and integrity ofthe annual financial statements and the related information included in the annual financial statements of the Companyand all its subsidiaries (“the Group”). In order for the Board of Directors (“the Board”) to discharge its responsibilities,management has developed and continues to maintain a system of internal control. The Board has ultimate responsibilityfor the system of internal control and reviews its operation, primarily through the Risk and Compliance Committee andthe Audit Committee.

The external auditors are responsible for reporting on the annual financial statements in conformity with InternationalStandards on Auditing, and their opinion is included on pages 9 to 12. The annual financial statements are prepared inaccordance with International Financial Reporting Standards, and the requirements of the Companies Act, No. 71 of 2008and the JSE Listing Requirements, and incorporate disclosures in line with the accounting practices of the Group. Theyare based on appropriate accounting policies consistently applied and are supported by reasonable judgements andestimates.

The directors believe that the Group will be a going concern for a period of 12 months from the date of this report.Accordingly, in preparing the annual financial statements, the going concern basis has been adopted.

The annual financial statements for the year ended 31 December 2019 as set out on pages 13 to 83 were approved bythe Board of Directors on 10 March 2020 and are signed on its behalf by:

MA MolotoBoard Chairman: Independent Non-Executive

These annual financial statements have been prepared under the supervision of:AM Basson CA(SA)Chief Financial Officer

DECLARATION BY THE SECRETARYFor the year ended 31 December 2019

The secretary certifies that the Company has lodged with the Commissioner of the Companies Act all such returns asare required of a public company, in terms of section 88(2)(e) of the Companies Act, No. 71 of 2008 as amended andto the best of my knowledge and belief, all such returns and notices are true, correct and up to date.

T Kodde10 March 2020

DIRECTORS' RESPONSIBILITIES AND APPROVALFor The Group Audited Annual Financial Statements for the year ended 31 December 2019

1SA Corporate Real Estate Limited

Annual Financial Statements for the year ended 2019

The directors are pleased to present their report that forms part of the Group annual financial statements for the yearended 31 December 2019. Separate annual financial statements have been prepared for the Company.

1. Nature of businessSA Corporate Real Estate Limited (Company registration: 2015/015578/06), the Company, is one of the oldestestablished property companies in the South African market. It is a JSE-listed Real Estate Investment Trust (“REIT”)which owns, through its subsidiary companies, a diversified property portfolio of 193 (2018: 200) properties in theindustrial, retail, commercial and residential sectors, located primarily in the major metropolitan areas of South Africawith a secondary node in Zambia comprising 3 properties in the retail and commercial sectors, in which the Companyholds a 50% interest through a joint venture arrangement.

2. Shareholders' equity Number of shares

2019 2018

Authorised shares 4 000 000 000 4 000 000 000Issued shares 2 514 732 095 2 530 689 337

During the year the Group repurchased and cancelled 15 957 242 shares.

3. DividendsDividends of R1 034 947 125 (2018: R1 119 390 130) were declared during the year.

4. Board compositionAs at the date of this report, the Board comprised of 10 directors in total, 2 executive and 8 non-executives. The non-executive directors are all considered by the Board to be independent.

Director Date appointed Date resigned/retiredIndependent non-executive chairmanJ Molobela 25 March 2015 14 June 2019EM Hendricks 14 June 2019 15 July 2019MA Moloto 15 July 2019

Lead Independent non-executive directorOR Mosetlhi 5 December 2019

Independent non-executive directorsRJ Biesman-Simons 16 February 2015A Chowan 13 April 2017 29 July 2019GP Dingaan 25 March 2015 28 May 2019U Fikelepi 30 October 2018 21 June 2019N Ford-Hoon (Fok) 17 July 2019EM Hendricks 25 March 2015GJ Heron 17 July 2019J Molobela 25 March 2015 27 June 2019MA Moloto 25 March 2015OR Mosetlhi 17 July 2019ES Seedat 25 March 2015A van Heerden 17 July 2019

DIRECTORS' REPORTFor the year ended 31 December 2019

2SA Corporate Real Estate LimitedAnnual Financial Statements for the year ended 2019

DIRECTORS' REPORT CONTINUEDFor the year ended 31 December 2019

Late Adv Jeff Molobela passed away on 27 June 2019 and the Board of SA Corporate extends its sincere condolencesto his family. We are thankful to him and the other directors who resigned/retired for their valued contributions.

We welcome Mrs Naidene Ford-Hoon (Fok), Mr Greg Heron, Adv Oratile Mosetlhi and Mr Andre van Heerden who joinedthe Board during the year.

Executive directors Date appointedTR Mackey (Chief Executive Officer) 19 January 2015AM Basson (Chief Financial Officer) 19 January 2015

2019 2018Number of Number of

shares sharesAwarded forfeitable shares in the Company:

TR Mackey Forfeitable share plan 3 072 717 2 413 648Co-investment plan - 163 667

3 072 717 2 577 315AM Basson Forfeitable share plan 1 764 242 1 385 828Co-investment plan 220 264 132 794

1 984 506 1 518 622

5. Company SecretaryKilgetty Statutory Services Proprietary Limited resigned as company secretary on 18 April 2019 and was replacedwith Luvivi Proprietary Limited, on 13 May 2019, who were replaced by Tasja Kodde on 17 February 2020.

6. Going concernThe directors have reviewed the cash flow forecast of the Group for the next 12 months and, in light of this reviewand the current financial position, taking into account the maturing of the facilities, they are satisfied that the Grouphave access to adequate resources to continue in operational existence for the next 12 months. The consolidatedannual financial statements, set out on pages 13 to 83 in this report, have been prepared on the going-concern basis.



Midway Mews, Cnr Harry Galaun Drive & Seventh Street, Halfway Gardens, Gauteng

Midway Mews, Cnr Harry Galaun Drive & Seventh Street, Halfway Gardens, Gauteng

DIRECTORS' REPORT CONTINUEDFor the year ended 31 December 2019


7. Reportable irregularityDuring 2019, the Group's auditors, Deloitte & Touche, reported a reportable irregularity (“RI”) to the IndependentRegulatory Board for Auditors (“IRBA”) in relation to a director's dealings in the Company's shares. The Company hasresponded to this RI and the auditors have informed the IRBA that the RI did occur, but is no longer continuing. TheRI does not affect the fair presentation of the financial statements.

8. Registered office and business addressSouth Wing, First floorBlock A, The ForumNorth Bank LaneCentury City7441

The Audit Committee has pleasure in submitting its report as required by section 94(7)(f) of the Companies Act, No.71 of 2008, as amended (“the Act”).

1. Overall role, responsibilities and functionIn addition to having statutory responsibilities to the shareholders, the Audit Committee (“the Committee”) is acommittee of the Board. It assists the Board through advising and making recommendations on financial reporting,internal financial controls, external and internal audit functions, statutory and regulatory compliance of the Group.The Committee oversees co-operation between the internal and external auditors, serving as a link between the Boardand these functions.

2. Terms of referenceThe Committee has adopted formal terms of reference, which are available on the company's website(sacorporatefund.co.za), delegated to it by the Board of its scope and responsibilities. The Committee follows an annualwork plan to ensure all its duties and responsibilities as set out in its terms of reference are dealt with. The Committeeconfirms that it has discharged its functions and complied with its terms of reference for the year ended 31 December2019.

3. CompositionThe Committee comprises of at least three independent non-executive directors. All members are independent asdescribed in section 94(4) of the Act and have as a whole, the necessary financial literacy, skills and experience tocarry out their duties effectively. The appointment of members of the Committee requires the approval of theshareholders at the Annual General Meeting each year.

SA Corporate Real Estate Fund (“the Fund”) was reconstituted as SA Corporate Real Estate Limited with effect from1 July 2015. As the Company is effectively a continuation of the Fund, the members of the Audit Committee of themanager of the Fund, SA Corporate Real Estate Fund Managers Proprietary Limited (“the Manager”), were appointedto the Company with effect from that date.

The following directors served on the Audit Committee during the year ended 31 December 2019:

REPORT OF THE AUDIT COMMITTEEFor the year ended 31 December 2019

4. Statutory dutiesThe Committee discharged its function in terms of the Act as follows:

• Nominated Deloitte & Touche as external auditor and Ms AN le Riche Traill as the designated independent auditor.• Reviewed the external auditor's terms of engagement, approved the external audit fees and ensured that the appointment of the external auditors complies with section 90 of the Act and the JSE Listing requirements.• Determined and approved the nature and extent of allowable non-audit services provided by the external auditor.• Reviewed the accounting policies, the content and auditing of annual financial statements, the internal financial

controls and other related matters for the year ending 31 December 2019.• Made submissions to the Board on matters concerning the Group's accounting policies, standards, financial

control, records and reporting.• Reviewed the Group's integrated annual report for the year ending 31 December 2018.• Took appropriate steps to ensure that the financial statements were prepared in accordance with IFRS, the JSE

Listings Requirements, and the requirements of the Act and other applicable legislation.• Dealt with queries relating to the accounting practices, the content and auditing of its financial statements, the internal financial controls of the Group and any other related matters.



Name Qualification Date of Date Meeting Meetingappointment resigned/ attendance attendance

retired Ad hoc/Special

Robert John Biesman-Simons (Chairman) CA(SA) 1 July 2015 3/3 3/3Ebrahim Suleman Seedat CA(SA) 1 July 2015 3/3 3/3Gugulethu Patricia Dingaan CA(SA) 1 July 2015 28 May 2019 0/1 -Adila Chowan CA(SA) 13 April 2017 29 July 2019 1/1 0/1Andre van Heerden CA(SA) 17 July 2019 2/2 3/3

5. Delegated dutiesThe Committee executed the duties delegated to it as follows:

• Reviewed the external audit approach and the quality and effectiveness of the external audit process.• Approved the internal audit plan, approach and fees.• Reviewed the performance of the internal audit function.• Discussed and reviewed the findings, problems and concerns arising from the internal and external audit.• Monitored compliance with legislation and regulations.• Reviewed the effectiveness of the Group's system of internal financial control, including receiving assurances from its property managers, Broll Property Group (Pty) Ltd and Afhco Property Managers (Pty) Ltd, internal and external audit.• Ensured that the Combined Assurance framework is applied to provide a coordinated approach to all assurance

activities.• Monitored compliance with the investment property valuation policy and recommended the valuations to the board for approval.• Provided inputs on the budget and recommended to the Board for approval.• Recommended approval of the interim and final results, distributions and SENS announcements to the Board.• Approved the extension of loan and overdraft facilities and recommended new debt facilities to the Board for approval.• Reviewed and approved swap derivatives, fixes and currency hedging.• Reviewed compliance with the financial conditions of loan covenants.• Approved the provision of property as security for debt and the structuring thereof.• Reviewed taxation matters.• Oversee the management of financial and other risks that affect the integrity of external reports issued by the

Group.• Reviewed compliance with the Committee's terms of reference and recommended changes to its terms of reference, in alignment with King IV, to the Board.• Reported back to the Board on matters delegated to it in terms of its terms of reference.• Reviewed exposure to banks.• Met with external and internal auditors without management being present.• Approved tenant write downs and write-offs in excess of R1 million.

6. Key focus areasContinue to deal with all its duties and responsibilities as set out in its terms of reference and annual work plan.The following areas received additional focus in 2019:• Adoption of new accounting standards effective from 1 January 2019.• Integration of technology in the financial reporting process.

7. Key audit matterValuation of investment propertyThe fair value of investment properties was determined by an experienced independent valuer, Quadrant PropertiesProprietary Limited. The valuation methodology and assumptions are subject to robust reviews by Management withinputs from the Investment Committee and Audit Committee before being recommended to the Board for approval.The Group has a property valuation policy and the committees of the Board ensure compliance therewith. The fairvalue of the industrial, retail and commercial portfolio of investment properties, excluding properties subject tounconditional contracted sales, was based on the discounted cash flow method. The fair value of the inner-city andperi-urban retail, residential and commercial investment properties was based on the capitalisation of the net incomeearnings in perpetuity. The discounted cash flow method is not appropriate in this portfolio due to the short termnature of the portfolio's leases. The Committee and Board carefully considered the movement in the valuations andthe fair values and believe that they are appropriate and justified.

8. Regulatory complianceThe Committee confirms that it has complied with all applicable legal, regulatory and other responsibilities.

REPORT OF THE AUDIT COMMITTEE CONTINUEDFor the year ended 31 December 2019



9. Independence of the external auditorsThe Committee performed its own rigorous assessment of the independence of the external auditor, as required bythe current governance requirements covered by the Companies Act and the King IV report on corporate governance.

This assessment included:• The tenure of the current engagement partner being less than five years and the audit firm's JSE accreditation;• The level of the audit fee agreed;• The extent and nature of non-audit services provided; and• The competence and expertise of the partner and the team.

The Committee has reviewed the policies and processes in place between the Group and Deloitte & Touche to ensurethat independence is maintained. These include the following:

• Assessment and pre-approval processes for engaging on non-audit services; and• Partner rotation after a five year period. The current partner, Ms AN le Riche Traill, was appointed at the annual

general meeting on 28 May 2019.

The nature of non-audit services provided during the year were largely in respect of taxation compliance reviewsand amounted to R335 286 (2018: R350 108).

The Committee confirms that the external auditors have executed their audit responsibilities as required and thatthe quality of the audits performed and reports issued were of an acceptable standard.

The Committee has taken note of the introduction by the Independent Regulatory Board for Auditors, of mandatoryaudit firm rotation rule effective from 1 April 2023 in terms of which an auditor may only serve a maximum of 10years, with a 5 year cooling off period. Deloitte & Touche has been the auditor of the Group for 25 years.

The Committee is to undertake a process to procure the appointment of external auditors to be recommended atthe Annual General meeting to be held on 26 May 2020.

10. Finance functionAs required by the JSE Listings Requirements, the Committee is satisfied that the Chief Financial Officer, Ms AntoinetteBasson CA(SA), possesses the appropriate expertise and experience to meet her responsibilities. The Committeesimilarly satisfied itself that the finance function is effective and competent. The Company is in the process of re-evaluating the resource requirements.

11. Combined assuranceThe Committee has the overall responsibility to ensure the combined assurance model is effective. It is based onthree levels of defence and assurance for all key risks identified. Level one is management-based assurance; leveltwo is assurance achieved through the oversight of the Board and its committees and level three is independentassurance provided by third parties such as the internal and external auditors, valuers, advisers and regulators.

The Committee is satisfied that the combined assurance framework appropriately addresses all significant risks.

12. Internal financial controlsThe Committee considers the adequacy and effectiveness of the system of internal financial control in the Group.The property management is outsourced to Broll Property Management (“Broll”), who have addressed a representationletter to the Committee in which they state, inter alia, “that the system of internal control in Broll is designed toprovide reasonable assurance that significant risks are appropriately managed and that the property managementand financial information for the Group emanating from Broll on-line and other systems are accurate and reliable.”

Broll have confirmed that there were no breaches or breakdowns in procedure and systems in 2019.



Musgrave Centre, Durban, KwaZulu Natal

The Group has outsourced its internal audit to BDO Advisory Services Proprietary Limited (“BDO”) who conduct theinternal audit on a three-year rotational plan. The year ended 31 December 2019 culminated in the conclusion of athree-year cycle. On completion of each audit area, BDO concluded that the internal controls operating in that specificarea were adequate and effective.

The Committee confirms that nothing has come to their attention to indicate material breakdown in the functioningof the financial reporting controls, procedures or systems occurred during the year ended 31 December 2019. Certainmonitoring deficiencies were noted. These will be addressed to ensure the control environment is strengthened.

13. Key focus areas in 2020The Committee will continue to deal with all its duties and responsibilities as set out in its terms of reference andannual work plan. The following matters will receive additional focus in 2020:

• Integration of technology in the financial reporting process.• Independent property valuation.• Ongoing focus on improving the internal control environment with a focus on both monitoring and IT controls,

both within the Group and the outsourced property managers.

14. Integrated Annual ReportThe Committee will evaluate the integrity of the 2019 Integrated Annual Report and ensure that it is prepared usingthe appropriate reporting standards, which meet the requirements of King IV and the JSE Listing Requirements inorder to recommend it to the Board for approval.

15. Financial statementsThe Committee recommends the annual financial statements to the Board for approval.

RJ Biesman-SimonsChairman Audit Committee: Independent Non-Executive10 March 2020



Report on the Audit of the Consolidated Annual Financial Statements

OpinionWe have audited the consolidated financial statements of SA Corporate Real Estate Limited and its subsidiaries (“theGroup”) set out on pages 13 to 83, which comprise the statement of financial position as at 31 December 2019, andthe statement of comprehensive income, the statement of changes in equity, and the statement of cash flows for theyear then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financialposition of the Group as at 31 December 2019, and its consolidated financial performance and its consolidated cash flowsfor the year then ended in accordance with International Financial Reporting Standards and the requirements of theCompanies Act of South Africa.

Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statementssection of our report. We are independent of the Group in accordance with the sections 290 and 291 of the IndependentRegulatory Board for Auditors Code of Professional Conduct (Revised January 2018), parts 1 and 3 of the IndependentRegulatory Board for Auditors' Code of Professional Conduct for Registered Auditors (Revised November 2018) (togetherthe IRBA Codes) and other independence requirements applicable to performing audits of financial statements in SouthAfrica. We have fulfilled our other ethical responsibilities in accordance with the IRBA Codes and in accordance with otherethical requirements applicable to performing audits in South Africa. The IRBA Codes are consistent with the correspondingsections of the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants andthe International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants(including International Independence Standards) respectively. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.

Key Audit MattersKey audit matters are those matters that, in our professional judgement, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our audit ofthe consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separateopinion on these matters.

The Key Audit Matter below applies to the consolidated financial statements.

INDEPENDENT AUDITOR’S REPORTTo the Shareholders of SA Corporate Real Estate Limited



Key Audit Matter How the matter was addressed in the audit

Of the total assets of R19.8 billion, investment propertiesrepresents R16.8 billion. The fair value adjustment recordedin total comprehensive income is R0,6 billion.

Investment properties are carried at fair value per therequirements of IAS40: Investment Properties. There area number of assumptions used in determining the fair valueof investment properties. The principal assumptions relateto: receipt of contracted rentals, expected future marketrentals, lease renewals, maintenance requirements, vacancyrates and appropriate discount and capitalisation rates.

The Directors make use of an external independent valuerto determine the valuations of the investment properties.

Our procedures included:• Assessing the competence, independence and experience of the external valuer;• Obtaining an understanding of the methods and assumptions applied by the valuer;• Using our independent valuation specialists to assists

in our assessment of the reasonableness of the valuation methodologies and assumptions applied based on their knowledge of the industry and the markets in which the group operates;• Debating and robustly challenging the significant underlying assumptions and judgement applied;

Valuation of Investment Property

INDEPENDENT AUDITOR’S REPORT CONTINUEDTo the Shareholders of SA Corporate Real Estate Limited


Other InformationThe Directors are responsible for the other information. The other information comprises the Directors' Report, the AuditCommittee's Report and the Company Secretary's Certificate, as required by the Companies Act of South Africa, whichwe obtained prior to the date of this report and the Integrated Report, which is expected to be made available to usafter that date. The other information does not include the consolidated financial statements and our auditor's reportthereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express anaudit opinion or any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the consolidated financialstatements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor's report,we conclude that there is a material misstatement of this other information, we are required to report that fact. Wehave nothing to report in this regard.

Responsibilities of the Directors for the Consolidated Financial StatementsThe Directors are responsible for the preparation and fair presentation of the consolidated financial statements inaccordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa,and for such internal control as the Directors determine is necessary to enable the preparation of consolidated financialstatements that are free from material misstatement, whether due to fraud or error.

The model used to determine the fair values of investmentproperties is the discounted cash flow model in respect ofthe traditional portfolio and the capitalisation rate in respectof the Afhco portfolio. The Directors used an externalindependent valuer to determine the fair values for all ofthe properties held in these categories bi-annually.

It is due to the quantum of the balance and key judgementin the assumptions used in the valuations, that this is akey audit matter.

The inputs with the most significant impact on thesevaluations are disclosed in note 7.

• Testing a sample of property valuations and re- performing valuations through corroborating the key

inputs given the assumptions and judgements applied;• Comparing the valuations in the current year to those valuations derived in the previous period and

enlisting explanations for the unusual or unexpectedmovements, corroborating the explanations with

further testing as necessary;• Comparing the assumptions used to market related

data and historical information specific to the Group;• Performing sensitivity analysis on the assumptions

applied in the model and analytical tests on unexpected relationships on the property valuation

data;• Assessing the competence and independence of management's expert to be in line with the industry

norms and the methods and assumptions applied bymanagement's expert; and

• Considered the disclosure and balances in the investment properties note, the accounting policies

note and critical accounting estimates and judgements.

Key Audit Matter How the matter was addressed in the audit

Valuation of Investment Property (continued)




In preparing the consolidated financial statements, the Directors are responsible for assessing the Group's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realisticalternative but to do so.

Auditor's Responsibilities for the Audit of the Consolidated Financial StatementsOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole arefree from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance withISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticismthroughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override of internal control.• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made the Directors.• Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and based on the

audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty

exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause

the Group to cease to continue as a going concern.• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events

in a manner that achieves fair presentation.• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities

within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the auditand significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regardingindependence, and to communicate with them all relationships and other matters that may reasonably be thought tobear on our independence, and where applicable, related safeguards.

From the matters communicated with the Audit Committee, we determine those matters that were of most significancein the audit of the consolidated financial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.



Report on Other Legal and Regulatory RequirementsIn terms of the Independent Regulatory Board for Auditors (IRBA) Rule published in Government Gazette Number 39475dated 4 December 2015, we report that Deloitte & Touche has been the auditor of SA Corporate Real Estate Limitedfor 25 years.

In accordance with our responsibilities in terms of sections 44(2) and 44(3) of the Auditing Profession Act, we reportthat we have identified a reportable irregularity in terms of the Auditing Profession Act. We have reported such matterto the Independent Regulatory Board for Auditors. The matter pertaining to the reportable irregularity has been describedin note 44 to the consolidated financial statements.

Deloitte & ToucheRegistered AuditorsPer: Nina le Riche TraillPartner10 March 2020

1st floor, the SquareCape Quarter27 Somerset RoadGreen Point8005Western Cape

National Executive: *LL Bam Chief Executive Officer; TMM Jordan Deputy Chief Executive Officer, Clients & Industries;MJ Jarvis Chief Operating Officer; AF Mackie Audit & Assurance; *N Sing Risk Advisory; DP Dlovu Tax & Legal; TP PillayConsulting; JK Mazzocco Talent & Transformation; MG Dicks Risk Independence & Legal; *KL Hodson Financial Advisory;*TJ Brown Chairman of the Board; Regional Leader MN Alberts

*Partner and Registered Auditor

B-BBEE rating: Level 1 contribution in terms of the DTI Generic Scorecard as per the amended Codes of Good Practice

Associate of Deloitte Africa, a member of Deloitte Touche Tohmatsu Limited

STATEMENT OF FINANCIAL POSITIONas at 31 December 2019

2019 2018Restated

Notes R 000 R 000

Assets

Non-current assetsInvestment property 7 16 788 656 17 309 740Letting commissions and tenant installations 7 44 049 42 893Investments in joint ventures 8 930 605 981 179Property, plant and equipment 9 16 033 16 396Intangible assets and goodwill 10 81 904 81 904Right-of-use assets 11 13 102 -Loans to developers 12 - 9 391Investment in listed shares 13 117 166 128 960Other financal assets 13 6 253 3 071Swap derivatives 14 249 929 261 056Deferred tax 21 6 196 199Rental receivable - straight line rental adjustment 229 927 235 476

18 483 820 19 070 265Current assetsInventories 333 279Loans to developers 12 131 767 212 804Development prepayment 13&26 - 155 135Loans receivable 13 217 338 -Other financial assets 13&26 9 886 11 968Swap derivatives 14 22 596 30 361Trade and other receivables 15 376 593 451 114Cash and cash equivalents 16 193 553 206 595Rental receivable - straight line rental adjustment 49 739 40 112Taxation receivable 1 036 1 128

1 002 841 1 109 496Non-current assets held for sale 17 307 647 216 246Total Assets 19 794 308 20 396 007

Equity and liabilitiesEquityShare capital and reserves 18 11 991 689 12 861 300

LiabilitiesNon-current liabilitiesLease liabilities 11 14 275 -Swap derivatives 14 349 166 307 095Loan from non-controlling shareholder 19 - 252 165Interest bearing borrowings 20 6 057 457 4 698 774

6 420 898 5 258 034Current liabilitiesLease liabilities 11 5 708 -Swap derivatives 14 39 066 22 469Interest bearing borrowings 20 896 130 1 791 376Trade and other payables 22 440 817 462 828

1 381 721 2 276 673Total Liabilities 7 802 619 7 534 707Total Equity and Liabilities 19 794 308 20 396 007



Beryl Street, Jet Park, Gauteng

STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 December 2019

2019 2018Restated

Notes R 000 R 000

Revenue 23 2 283 947 2 309 524Other operating expenses 27 (982 679) (908 257)

Operating profit 1 301 268 1 401 267Foreign exchange adjustments 17 185 (93 593)Fair value (loss)/gain on swap derivatives 14 (84 513) 24 874Capital loss on disposal of investment properties and property, plant and equipment (9 256) (9 242)Fair value loss on investment properties 7 (563 652) (88 384)Profit on acquisition of non-controlling interest 19 1 850 -Impairment of investment in unlisted shares 13 (1 522) -Fair value loss on investment in listed shares 13 (11 794) (41 300)Profit from joint ventures 8 17 439 38 818Dividends from investment in listed shares 13 879 16 046Interest income 24 69 533 88 816Interest expense 25&26 (503 219) (508 964)

Profit before taxation 247 198 828 338Taxation 28 5 730 1 679

Profit for the year 252 928 830 017

Other comprehensive income:

Items that may be reclassified to profit or loss:Foreign exchange adjustments on investment in joint ventures 8 (25 730) 139 098

Total comprehensive income 227 198 969 115

Profit after taxation attributable to:Owners of the company 235 603 847 850Non-controlling interest 19 17 325 (17 833)

252 928 830 017

Basic earnings per share (cents) 29 9.32 33.50Diluted earnings per share (cents) 29 9.32 33.50


Non- Non- Share distributable Distributable controlling Total

capital reserves reserves interest equityR 000 R 000 R 000 R 000 R 000

Shareholders' equity at 1 January 2018 9 212 029 3 225 969 570 355 508 13 008 861 Profit after taxation - - 847 850 (17 833) 830 017 Foreign exchange adjustments on investment in joint ventures - - 139 098 - 139 098 Total comprehensive income for the year - - 986 948 (17 833) 969 115Buy back of 439 116 treasury shares (1 974) - - - (1 974)Share-based payment reserve 4 780 (92) - - 4 688Foreign exchange loss on capital loan - (94 075) 94 075 - -Fair value gain on swap derivatives - 24 874 (24 874) - -Capital loss on disposal of investment properties - (9 242) 9 242 - -Fair value loss on investment properties - (88 384) 88 384 - - Fair value loss on investments in listed shares - (41 300) 41 300 - -Straight line rental adjustment - 21 472 (21 472) - -Dividends from listed shares not yet declared - 2 092 (2 092) - - Depreciation - (6 201) 6 201 - -Non-distributable adjustments on investment injoint ventures - 114 309 (114 309) - - Non-distributable expenses - (20 635) 20 635 - -Non-controlling interest revaluation of investmentproperties - 15 825 (15 825) - -

9 214 835 3 144 612 1 638 568 (17 325) 13 980 690

Distributions attributable to shareholders - - (1 119 390) - (1 119 390)

Shareholders' equity at 31 December 2018 9 214 835 3 144 612 519 178 (17 325) 12 861 300 Opening impact of IFRS 16 - - (7 812) - (7 812) IFRS 16 allocated NDR - (7 812) 7 812 - - Profit after taxation - - 235 603 17 325 252 928 Foreign exchange adjustments on investment in joint ventures - - (25 730) - (25 730)Total comprehensive income for the year - - 209 873 17 325 227 198Fair value loss on swap derivatives - (84 513) 84 513 - -Fair value loss on investment properties - (563 652) 563 652 - -Fair value loss on investments in listed shares - (11 794) 11 794 - -Non-distributable adjustments on investments onjoint ventures - (79 387) 79 387 - - Capital profit/loss on disposal of fixedproperties/investments transferred to NDR - (9 256) 9 256 - - Foreign exchange gain on capital loan - 15 686 (15 686) - -Non-controlling interest NDR - (17 325) 17 325 - -

STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2019



STATEMENT OF CHANGES IN EQUITY CONTINUEDfor the year ended 31 December 2019

Non- Non- Share distributable Distributable controlling Total

capital reserves reserves interest equityR 000 R 000 R 000 R 000 R 000

Straight line rental adjustment - 15 630 (15 630) - -Gain on acquisition of NCI - 1 850 (1 850) - -Treasury shares repurchased (9 470) - - - (9 470)Dividends from listed shares not yet declared - 971 (971) - - Shares repurchased (51 611) - 1 527 - (50 084)Depreciation - (6 468) 6 468 - -Non-distributable expenses - (10 316) 10 316 - -Share-based payment reserve 4 633 871 - - 5 504

9 158 387 2 389 097 1 479 152 - 13 026 636Distributions attributable to shareholders - - (1 034 947) - (1 034 947)Shareholders' equity at 31 December 2019 9 158 387 2 389 097 444 205 - 11 991 689

Note 18 18 18 19 18

21 Fricker Road, Illovo, Gauteng


2019 2018Restated

Note R 000 R 000

Cash flows from operating activities

Cash generated from operations 33 1 444 269 1 500 800Interest received 72 719 86 449Distributions paid 32 (1 034 947) (1 119 390)Interest paid (554 966) (562 057)Taxation paid 28 (175) (752)Net cash used in operating activities (73 100) (94 950)

Cash flows from investing activities

Acquisition of property, plant and equipment 9 (6 104) (5 894)Increase in investment properties 7 (860 974) (1 712 772)Proceeds on disposal of investment properties 7&17 731 864 668 551Loans to developers settled 12 312 623 202 726Loans to developers granted 12 (222 195) (30 000)Advance from investment in joint ventures 8 42 283 43 770(Increase)/decrease in other financial assets 13 (63 303) 9 171Decrease in development prepayment 13 - 39 061Increase in letting commissions and tenant installations 7&17 (26 138) (17 332)Net cash used in investing activities (91 944) (802 719)

Cash flows from financing activities

Share repurchased (50 084) -Repurchase of treasury shares (9 470) (1 974)Proceeds on interest bearing borrowings 20 4 499 000 936 186Repayment of interest bearing borrowings 20 (4 026 203) (267 376)Loan from non-controlling shareholder 19 (252 165) 161 974Payment on lease liabilities (9 076) -Net cash from financing activities 152 002 828 810

Total cash and cash equivalents movement for the year (13 042) (68 859)Cash and cash equivalents at the beginning of the year 206 595 275 454

Total cash and cash equivalents at end of the year 16 193 553 206 595

STATEMENT OF CASH FLOWSfor the year ended 31 December 2019



1. GENERAL INFORMATIONSA Corporate Real Estate Limited (“the Company”), established in the Republic of South Africa, is a Real EstateInvestment Trust (“REIT”). The Company is listed on the JSE.

2. ADOPTION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDSIn the current year the Group have adopted all of the revised Standards and Interpretations issued by the InternationalAccounting Standards Board (“the IASB”) and the IFRS Interpretations Committee (“IFRIC”) of the IASB that arerelevant to its operations and effective for accounting periods beginning on or after 1 January 2019. Except forIFRS 16, the adoption of these standards and interpretations has not resulted in any adjustment to the amountspreviously reported in the Annual Financial Statements for the year ended 31 December 2018. The Group hasapplied IFRS 16 using the modified retrospective approach and, therefore, the comparative information has notbeen restated. Refer to note 5 for an analysis of the impact of newly adopted International Financial ReportingStandards.

3. BASIS OF PREPARATIONThe annual financial statements have been prepared in accordance with the Companies Act of South Africa, No 71of 2008 as amended, International Financial Reporting Standards (''IFRS''), the SAICA Financial Reporting Guidesas issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial ReportingStandards Council. The accounting policies used in the preparation of the financial statements are consistent withthose applied in the prior year, except as noted in 5.1. The financial statements have been prepared on the goingconcern and historical cost basis, modified by the revaluation of certain financial instruments and investment propertyto fair value measurement.

Accounting policies, which are useful to users, especially where particular accounting policies are based on judgementregarding choices within IFRS have been disclosed. Accounting policies for which no choice is permitted in termsof IFRS have been included only if management concluded that the disclosure would assist users in understandingthe annual financial statements as a whole, taking into account the materiality of the item being discussed. Accountingpolicies which are not applicable from time to time, have been removed, but will be included if the type of transactionoccurs in future.

3.1 Basis of consolidationThe Group consolidated financial statements incorporate the financial statements of the Company and its subsidiaries.Consolidation of the subsidiary begins when the Company obtains control over the subsidiary and ceases whencontrol is lost. The Company is the major and/or sole owner of all its subsidiaries and consequentially has powerto direct the subsidiaries' performance which gives rise to the dividend income the Company receives from thesubsidiaries.

Profit or loss and each component of other comprehensive income are attributed to the owners of the Companyand to the non-controlling interests, even if it results in the non-controlling interests having a deficit balance.

All intragroup transactions and balances between members of the Group are eliminated in full upon consolidation.

3.2 ImpairmentThe carrying amount of the Group's assets is reviewed at each reporting date to determine whether there is anyindication of impairment. An impairment loss is recognised in profit or loss when the carrying amount of an assetexceeds its recoverable amount, which is the higher of an asset's net selling price and value in use. In assessingvalue in use, the estimated future cash flows are discounted to their present value using a discount rate that reflectscurrent market assessments of the time value of money and the risks specific to the asset. When an impairmentloss is subsequently reversed, the carrying amount of the asset is increased to the extent that the increased carryingamount does not exceed the original carrying amount. A reversal of an impairment loss is recognised immediatelyin profit or loss.

NOTES TO THE GROUP AUDITED ANNUAL FINANCIAL STATEMENTSfor the year ended 31 December 2019


Cambridge Crossing, Cnr Witkoppen Road & Stone Haven Street, Paulshof, Sandton, Gauteng

3. BASIS OF PREPARATION (continued)

3.3 Fair value measurement

Where another IFRS requires or the Group has chosen fair value measurement for assets or liabilities, the Grouphas applied the principles of IFRS 13: Fair Value Measurement to determine the fair value to be used. Fair value isthe price that would be received to sell an asset or paid to transfer a liability in an orderly transaction betweenmarket participants at the measurement date. The fair value of quoted instruments is determined with referenceto closing market prices on the date of measurement. Where there is no active market, fair value is determinedusing applicable valuation techniques. Valuation techniques include discounted cash flow models, pricing modelsand recent arm's-length transactions for similar instruments.

3.4 Foreign currenciesIn preparing the financial statements of each individual entity, transactions in currencies other than Rand arerecognised at the rate of exchange prevailing at the dates of the transactions. Non-monetary items that are measuredin terms of the historical cost in a foreign currency are not retranslated.

Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.

For the purposes of presenting these consolidated financial statements, the assets and liabilities of the Group'sforeign operations are translated into Rand using exchange rates prevailing at the end of each reporting period.Income and expense items are translated at the average exchange rates for the period.

Exchange differences arising from foreign joint ventures are recognised in other comprehensive income andaccumulated in equity.

TThe functional currency of the foreign joint ventures is US Dollar, despite the properties being situated in Zambia,as the majority of the underlying rental agreements are dollarised.

The financial statements are presented in South African Rand (ZAR). Foreign currency exchange rates used inconverting US Dollar to ZAR are:Spot on 31 December 2019 US Dollar: R14.00 (2018: R14.3467)Average US Dollar: R14.4476 (2018: R13.2350)



NOTES TO THE GROUP AUDITED ANNUAL FINANCIAL STATEMENTSCONTINUEDfor the year ended 31 December 2019

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTSEstimates and judgements are continually evaluated and are based on historical experience as, adjusted for currentmarket conditions and other factors.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates may bydefinition, seldom equal the related actual results. The estimates or assumptions that have a significant risk ofcausing a material adjustment to the carrying amounts of assets and liabilities within the next financial year arediscussed below.

4.1 Significant estimates and judgements include

4.1.1 Estimates of the fair value of investment propertiesThe best evidence of fair value is current prices in an active market for similar leases and other contracts.In the absence of such information, the Group determines the amount within a range of reasonable fair valueestimates. In making its judgement the Group considers information from a variety of sources including:• Current prices in an active market for properties of different nature, condition or location (or subject to

different lease or other contracts), adjusted to reflect those differences. This is reflected in the capitalisationrate assumption;

• Recent prices of similar properties in less active markets, with adjustments to reflect any changes in economic conditions since the date of the transactions that occurred at those prices. This is reflected in the capitalisation rate assumption;• Discounted cash flow projections based on reliable estimates of future cash flows, derived from the terms

of any existing leases and other contracts and (where possible) from external evidence such as current market rents for similar properties in the same location and condition, and using discount rates that reflect

current market assessments of the uncertainty in the amount and timing of the cash flows; and• The fair value of the inner-city retail, residential and commercial investment properties was based on the

capitalisation of the net income earnings in perpetuity. The discounted cash flow method is not appropriatein these portfolios due to the short term nature of the portfolio's leases.

If information on current or recent prices is not available, the fair values of investment properties aredetermined using discounted cash flow valuation techniques. The Group used assumptions that are mainlybased on market conditions existing at each reporting date.

The principal assumptions underlying management's estimation of fair value are those related to:• The receipt of contracted rentals, expected future market rentals, lease renewals, maintenance requirements

and appropriate discount and capitalisation rates.• These valuations are regularly compared to actual market yield data, actual transactions by the Group and those reported by the market.• The expected future market rentals are determined with reference to current market rentals for similar properties in the same location and condition.

4.2 Other estimates and judgements include:

4.2.1 Provision for expected credit lossThe assessment of the correlation between historical observed default rates, forecast economic conditionsand estimated credit loss (“ECL”) is a significant estimate. The Group adopted the simplified approachrecognises a lifetime ECL for trade receivables and debt receivables. The information about the ECLs on theGroup's trade receivables is disclosed in Note 15. Management exercises judgement in the assessment ofthe credit risk for the measurement of the ECL.

The following information is taken into account when assessing the credit risk:• The ECL rates are based on historical default expence and financial position of the counterparty of sectors

that have similar loss patterns in the industrial, retail, residential and commercial tenant sectors.



4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)

• The provision matrix is initially based on the Group's historical observed default rates. The Group's historicalcredit loss experience and forecast of economic conditions may also not be representative of the tenant'sactual default in the future. The Group will calibrate the matrix to adjust the historical credit loss experiencewith forward-looking information. The forward looking information includes, but is not limited to, inflationand GDP growth. At every reporting date, the historical observed default rates are updated and changesin the forward- looking estimates are analysed.

• The historical recoverability and financial viability of debt receivables are assessed to determine ECL.

Impairment provisions for trade receivables are recognised based on the simplified approach within IFRS 9using the lifetime expected credit losses. During this process the probability of the non-payment of the tradereceivables is assessed. This probability is then multiplied by the amount of the expected loss arising fromdefault to determine the lifetime expected credit loss for the trade receivables. For trade receivables, whichare reported net, such provisions are recorded in a separate provision account with the loss being recognisedwithin property expenses in the consolidated statement of comprehensive income. On confirmation that thetrade receivable will not be recoverable, the gross carrying value of the asset is written off against theassociated provision.

From time to time, the Group elects to renegotiate the terms of trade receivables with which it has previouslyhad a good repayment history. Such renegotiations will lead to changes in the timing of payments ratherthan changes to the amounts owed and, in consequence, the new expected cash flows are discounted atthe original effective interest rate and any resulting difference to the carrying value is recognised in theconsolidated statement of comprehensive income (interest income).

4.2.2 Intangible assetThe brand's fair value was determined using the Relief from Royalty method. The brand was valued using adiscount rate equal to the weighted average cost of capital and assumed an indefinite useful life. The indefiniteuseful life assumption is attributable to the relative strength, market recognition and the time in existenceof the brand. The brand is assessed for impairment at the end of each reporting period.

Impairment is tested based on a discounted cash flow method over an indefinite period, using the Group'sweighted average cost of capital as the discount rate and an assumed increase in net income based on theyield as at acquisition. The period over which projected cash flows is forecasted was 3 years, projected fora further 7 years.

4.2.3 Swap derivativesThe swap derivatives fair value is determined at the end of each reporting period through a discounted cashflow of the net interest payable or receivable over the instrument's remaining life. The net interest isdetermined as the difference between the fixed agreed upon price and the variable rate. The variable rateis subject to market conditions. The credit risk of the instrument is used to determine the discount rate.

4.2.4 Impairment of goodwillDetermining whether goodwill is impaired requires an estimation of the value in use of the cash-generatingunits to which goodwill has been allocated. The value in use calculation requires the Directors to estimatethe future cash flows expected to arise from the cash-generating unit and a suitable discount rate in orderto calculate the present value. Where the actual future cash flows are less than expected, a material lossmay arise.




5. NEW STANDARDS AND IFRIC INTERPRETATIONSThe aggregate impact of the initial application of the statements and interpretations on the Group's group auditedannual financial statements is expected to be as follows:

5.1 New standards and interpretations adopted in the current yearThe Group adopted the following new or revised accounting standards in the current year:

Annual Improvements 2015 - 2017 Cycle:

5.1.1 IFRS 16: Lease (effective 1 January 2019)IFRS 16 provides a comprehensive model for the identification of lease arrangements and their treatmentin the financial statements of both lessees and lessors. The standard distinguishes leases and service contractson the basis of whether an identified asset is controlled by a customer. Distinctions of operating leases andfinance leases are removed for lessee accounting and is replaced by a model where a right-of-use of theasset and a corresponding liability is recognised for all leases by lessees, except for short-term leases andleases of low value assets.

Where the Group is a lessee, the adoption of IFRS 16 results in the Group needing to recognise the right-of-use assets and lease liabilities for all contracts that are, or contain, a lease. For leases currently classifiedas operating leases, under the previous accounting requirements, the Group did not recognise related assetsor liabilities, and instead spread the lease payments on a straight-line basis over the lease term, disclosingin its annual financial statements the total commitment.

The directors have decided it will apply the modified retrospective adoption method in IFRS 16, and recognisedleases on the statement of financial position as at 1 January 2019. In addition, they have decided to measureright-of-use assets by reference to the measurement of the lease liability on that date.

Instead of recognising an operating expense for its operating lease payments, the Group recognised intereston its lease liabilities and amortisation on its right-of-use assets.

Where the Group is a lessor, the application of this standard has no significant impact on the consolidatedfinancial statements.

Refer to note 11 for detailed disclosure.

5.1.2 IFRS 3: Business combinations (effective 1 January 2019) No impact

5.1.3 IFRS 9: Financial Instruments (effective 1 January 2019) No impact

5.1.4 IFRS 11: Joint arrangements (effective 1 January 2019) No impact

5.1.5 IAS 12: Income taxes (effective 1 January 2019) No impact

5.1.6 IAS 23: Borrowings (effective 1 January 2019) No impact

5.1.7 IAS 28: Investments in Associates and Joint Ventures (effective 1 January 2019) No impact

5.1.8 IFRIC 23: Uncertainty over income tax treatments No impact



5. NEW STANDARDS AND IFRIC INTERPRETATIONS (continued)

5.2.1 New standards and interpretations in issue, but not yet effective:Certain new accounting standards and IFRIC interpretations have been published that are applicable forfuture accounting periods. These new standards and interpretations have not been early adopted by theGroup.

The amended and new standards and interpretations in issue, but not yet effective, that are relevant to theGroup are:

5.2.2 IAS 1: Presentation of financial statements (effective 1 January 2020)The amendments clarify and align the definition of 'material' and provide guidance to help improve consistencyin the application of that concept whenever it is used in IFRS.

The directors do not anticipate that the application of this amendment will have a significant impact on theconsolidated financial statements as it provides further clarity to the definition.

5.2.3 IAS 8: Accounting policies, changes in accounting estimates and errors (effective 1 January 2020)The amendments clarify and align the definition of 'material' and provide guidance to help improve consistencyin the application of that concept whenever it is used in IFRS.

The directors do not anticipate that the application of this amendment will have a significant impact on theconsolidated financial statements.

5.2.4 IFRS 3: Business combinations (effective 1 January 2020)Definition of a business:

The amendments:• Confirmed that a business must include inputs and a process, and clarified that: - the process must be substantive; and - the inputs and process must together significantly contribute to creating outputs.• narrowed the definitions of a business by focusing the definition of outputs on goods and services provided to customers and other income from ordinary activities, rather than on providing dividends or other economic benefits directly to investors or lowering costs; and• added a test that makes it easier to conclude that a company has acquired a group of assets, rather than a business, if the value of the assets acquired is substantially all concentrated in a single asset or group of similar assets.

The directors do not anticipate that the application of this amendment will have a significant impact on theconsolidated financial statements as there were no new businesses acquired during the year.

5.2.5 IFRS 7: Financial instruments - Disclosure;IFRS 9: Financial instruments; andIAS 39: Financial instruments - Recognition and measurements (effective 1 January 2020)

The amendment requirements for hedge accounting to support the provision of useful financial informationduring the period of uncertainty caused by the phasing out of interest-rate benchmarks such as interbankoffered rates (IBORs) on hedge accounting.• The amendments modify some specific hedge accounting requirements to provide relief from potential effects of the uncertainty caused by the IBOR reform.• In addition, the amendments require companies to provide additional information to investors about their

hedging relationships which are directly affected by these uncertainties.

The directors do not anticipate that the application of this amendment will have a significant impact on theconsolidated financial statements as the Group does not apply hedge accounting.




6. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT6.1 Accounting policies objectives

6.1.1 Financial assetsThe Group classifies its financial assets into one of the categories detailed below, depending on the purposefor which the asset was acquired. The Group's accounting policy for each category is as follows:

6.1.1.1 Fair value through profit or lossThis category comprises of Swap derivatives, Investment in listed shares and Loans to Developers settledthrough the transfer of properties.

These assets are carried in the statement of financial position at fair value with changes in fair valuerecognised in the statement of profit and loss. The Group does not have any assets held for trading nordoes it voluntarily classify any financial assets as being at fair value through profit or loss.

Dividends received from investments in listed shares are recognised in profit or loss, unless the dividendclearly represents a recovery of part of the cost of the investment, in which case the full or partial amountof the dividend is recorded against the associated investment’s carrying amount.

6.1.1.2 Amortised costAssets that are held for collection of contractual cash flows, where those cash flows represent solelypayments of principal and interest is measured at amortised cost. Interest income from these financialassets is included in finance income using the effective interest method. Any gain or loss arising onderecognition is recognised directly in profit or loss and presented in other gains/(losses), together withforeign exchange gains and losses.

Refer to table on Categories of financial instruments 2019: Assets for those assets measured at amortisedcost.

6.1.2 Financial liabilitiesThe Group classifies its financial liabilities into one of two categories, depending on the purpose for whichthe liability was acquired.

The Group's accounting policy for each category is as follows:

6.1.2.1 Fair value through profit or lossThis category comprises only of swap derivatives.

They are carried in the statement of financial position at fair value with changes in fair value recognisedin the statement of comprehensive income. Other than these swap derivatives, the Group does not haveany liabilities held for trading nor has it designated any financial liabilities as being at fair value throughprofit or loss.

At the end of each reporting date the liability is re-measured at fair value, where the fair value adjustmentsare recognised in the profit or loss for the year.

6.1.2.2 Financial liabilities at amortised costOther financial liabilities namely bearing borrowings, trade payables and other short-term monetary liabilitiesare initially recognised at fair value net of transaction cost directly attributable to the issue of the instrument.Such interest bearing liabilities are subsequently measured at amortised cost using the effective interestrate method, this ensures that any interest expense over the period to repayment is at a constant rateon the balance of the liability carried in the statement of financial position. For the purposes of each financialliability, interest expense includes any interest payable while the liability is outstanding.



6. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

6.1.3 Equity instrumentsAny contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

6.2 Fair value

6.2.1 Fair value of financial assets and liabilities that are measured at fair value on a recurring basis:The financial instruments are grouped into levels 1 to 3 based on the degree to which the fair value isobservable. The different levels have been defined as follows:

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets foridentical assets or liabilities;

Level 2 fair value measurements are those derived from inputs, other quoted prices included within level 1,that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived fromprices); and

Level 3 fair value measurements are those derived from valuation techniques that include inputs for theassets or liability that are not based on observable market data i.e. unobservable inputs.

6.2.2 Fair value of financial instruments measured at amortised costFinancial instruments measured at amortised costs includes cash and cash equivalents, trade and otherreceivables, trade and other payables, loans and borrowings. Due to their short-term nature, the carryingvalue of cash and cash equivalents, trade and other receivables, and trade and other payables approximatestheir fair value.

6.2.3 Expected credit losses (''ECL'')For the purpose of impairment assessment for these financial assets, the loss allowance is measured at anamount equal to life time ECL. In determining the expected credit losses for these assets, the directors ofthe Group have taken into account the historical default experience and the financial position of thecounterparties. Management has assessed the recoverability of each financial asset, excluding trade receivables,based on historical default experience and the ability of the debtor to commit to a repayment plan and whencontractual payment exceed 90 days. The other receivables and loans are also secured by properties andother assets and hence should the counter party default, the Group will not incur a loss. Refer to note 14for further details.

Impairment provisions for trade receivables are recognised based on the simplified approach within IFRS 9using the lifetime expected credit losses. During this process the probability of the non-payment of the tradereceivables is assessed. This probability is then multiplied by the amount of the expected loss arising fromdefault to determine the lifetime expected credit loss for the trade receivables. For trade receivables, whichare reported net, such provisions are recorded in a separate provision account with the loss being recognisedwithin property expenses in the consolidated statement of comprehensive income. On confirmation that thetrade receivable will not be recoverable, the gross carrying value of the asset is written off against theassociated provision.

6.3 Classification of financial instruments:The following table sets out the fair value measurement level and classification of all assets, liabilities andequity.




NOTES TO THE GROUP AUDITED ANNUAL FINANCIAL STATEMENTS CONTINUEDfor the year ended 31 December 2019


Fair Value classification and measurement Level

Categories of financial instruments 2019: Assets Fair value Financial asset Non- Total ECL (R 000) measurement Derivative Non-derivative financial assessment FVTPL FVTPL Amortised instruments note cost reference

Non-current assetsInvestment property Level 3 - - - 16 788 656 16 788 656Letting commissions and tenant installations - - - 44 049 44 049Investment in joint ventures - - - 930 605 930 605Property plant and equipment - - - 16 033 16 033Intangible assets - - - 81 904 81 904Rental receivable - straight line rental adjustment - - - 229 927 229 927Investment in listed shares Level 1 - 117 166 - - 117 166Swap derivatives Level 2 249 929 - - - 249 929Other financial assets - - 6 253 - 6 253 13Right of use asset - - - 13 102 13 102Deferred taxation - - - 6 196 6 196

249 929 117 166 6 253 18 110 472 18 483 820 -Current assetsTrade receivables - - 113 055 - 113 055 15Other receivables (1) - - 196 784 12 970 209 754 15Prepayments - - - 53 784 53 784Swap derivatives Level 2 22 596 - - - 22 596Rental receivable - straight line rental adjustment - - - 49 739 49 739Inventories - - - 333 333Loans to developers - 131 767 - - 131 767 12Taxation receivable - - - 1 036 1 036Loan receivables - 217 338 - - 217 338Other financial assets - - 9 886 - 9 886 13Development prepayment - - - - -Cash and cash equivalents - - 193 553 - 193 553 16

22 596 349 105 513 278 117 862 1 002 841Non-current assets held for sale Level 3 - - - 307 647 307 647Total assets 272 525 466 271 519 531 18 535 981 19 794 308



Categories of financial instruments 2019: Equity and liabilities Fair value Financial liabilities Equity Non- Total (R 000) measurement Derivative Non-derivative instrument financial FVTPL Amortised instrument cost

EquityShare capital and reserves - - 11 991 689 - 11 991 689

LiabilitiesNon-current liabilitiesLoan from non-controlling shareholder - - - - -Interest bearing borrowings - 6 057 457 - - 6 057 457Lease liability - - - 14 275 14 275Swap derivatives Level 2 349 166 - - - 349 166

349 166 6 057 457 - 14 275 6 420 898

Current liabilitiesTrade and other payables (2) - 371 977 - 68 840 440 817Interest bearing borrowings - 896 130 - - 896 130Lease liability - - - 5 708 5 708Swap derivatives Level 2 39 066 - - - 39 066

39 066 1 268 107 - 74 548 1 381 721Total liabilities 388 232 7 325 564 - 88 823 7 802 619Total equity and liabilities 388 232 7 325 564 11 991 689 88 823 19 794 308





Categories of financial instruments 2018: Assets Fair value FVTPL FVTPL Amortised Non- Total ECL (R 000) measurement cost financial assessment

instruments note referenceNon-current assetsInvestment property Level 3 - - - 17 309 740 17 309 740Letting commissions and tenant installations - - - 42 893 42 893Investment in joint ventures - - - 981 179 981 179Property, plant and equipment - - - 16 396 16 396Intangible assets - - - 81 904 81 904Loans to developers - - 9 391 - 9 391 12Rental receivable - straight line rental adjustment - - - 235 476 235 476Investment in listed shares Level 1 - 128 960 - - 128 960Swap derivatives Level 2 261 056 - - - 261 056Other financial assets - - 3 071 - 3 071 13Deferred taxation - - - 199 199

261 056 128 960 12 462 18 667 787 19 070 265Current assetsTrade receivables - - 74 920 - 74 920 15Other receivables (1) - - 294 636 16 751 311 387 15Prepayment (2) - - - 64 807 64 807 (Restated)Swap derivatives Level 2 30 361 - - - 30 361Rental receivable - straight line rental adjustment - - - 40 112 40 112Inventories - - - 279 279Loans to developers - 120 201 92 603 - 212 804 12Taxation receivable - - - 1 128 1 128Other financial assets - - 11 968 - 11 968 13Development prepayment - - - 155 135 155 135Cash and cash equivalents - - 206 595 - 206 595 16

30 361 120 201 680 722 278 212 1 109 496Non-current assets held for sale Level 3 - - - 216 246 216 246Total assets 291 417 249 161 693 184 19 162 245 20 396 007




Fair value FVTPL Amortised Equity Non- Totalmeasurement cost instrument financial

instrumentEquity (R 000)Share capital and reserves - - 12 861 300 - 12 861 300LiabilitiesNon-current liabilitiesLoan from non-controlling shareholder - 252 165 - - 252 165Interest bearing borrowings - 4 698 774 - - 4 698 774Swap derivatives Level 2 307 095 - - - 307 095

307 095 4 950 939 - - 5 258 034Current liabilitiesCurrent liabilitiesTrade and other payables (2) - 384 809 - 78 019 462 828Interest bearing borrowings - 1 791 376 - - 1 791 376Swap derivatives Level 2 22 469 - - - 22 469

22 469 2 176 185 - 78 019 2 276 673Total liabilities 329 564 7 127 124 - 78 019 7 534 707Total equity and liabilities 329 564 7 127 124 12 861 300 78 019 20 396 007

(1) Included in other receivables are VAT and prepayments which are non-financial assets. The prior year financial statements disclosed R64.807m prepayments as a financial asset at amortised cost.This has been correctly classified as a non-financial instrument in the 2018 comparative figures in the 2019 financial statements.

(2) Included in trade and other payables are VAT and rentals received in advance which are non-financial assets.




Comaro Crossing, Cnr Comaro Street & Boundary Lane, Oakdene, Gauteng


Risk ManagementThe Group's financial risk management objective is to manage the capital and financial risk exposure so that it continues as agoing concern and minimises adverse effects. In common with all other businesses, the Group is exposed to risks that arisefrom its use of financial instruments. This note describes the Group's objectives, policies and processes for managing thoserisks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughoutthese financial statements. In order to manage these risks, the Group may use derivative instruments. The Group does notspeculate in or engage in the trading of derivative instruments.

There have been no substantive changes in the Group's exposure to financial instrument risks, its objectives, policies andprocesses for managing those risks or the methods used to measure them from previous periods unless otherwise stated inthis note.

The Group has exposure to the following risks of financial instruments:• Liquidity risk• Market risk

- Foreign currency risk- Interest rate risk- Capital risk

• Credit risk

The categories of Financial Instruments and risk classifications are tabulated as follows:




Financial instruments 2019: Assets Financial Foreign Interest rateinstruments Credit risk Liquidity risk currency risk risk Capital risk

R 000 R 000 R 000 R 000 R 000 R 000Non-current assetsInvestment in listed shares 117 166 117 166 - - - -Swap derivatives 249 929 249 929 - 246 006 3 923 -Other financial assets 6 253 6 253 - - - -

373 348 373 348 - 246 006 3 923 -Current assetsTrade receivables 113 055 113 055 - - - -Other receivables (1) 196 784 196 784 - - - -Swap derivatives 22 596 22 596 - 21 053 1 543 -Loans to developers 131 767 131 767 - - 131 767 -Loans receivable 217 338 217 338 - - - - Other financial assets 9 886 9 886 - - - -Cash and cash equivalents 193 553 193 553 - - 193 553 193 553

884 979 884 979 - 21 053 330 786 193 553Total assets 1 258 327 1 258 327 - 267 059 326 863 193 553

Financial instruments: Equities and liabilitiesEquityShare capital and reserves - - - - - 11 991 689LiabilitiesNon-current liabilitiesInterest bearing borrowings 6 057 457 - 6 057 457 378 000 6 057 457 6 057 457Swap derivatives 349 166 - 349 166 292 999 - -

6 406 623 - 6 406 623 670 999 6 057 457 6 057 457Current liabilities Trade and other payables (2) 371 660 - 371 977 - - -Interest bearing borrowings 896 130 - 896 130 - 896 130 896 130Swap derivatives 39 066 - 39 066 11 813 - -

1 306 856 - 1 307 173 11 813 896 130 896 130Total liabilities 7 713 479 - 7 713 796 96 814 6 953 587 6 953 587Total equity and liabilities 7 713 479 - 7 713 796 96 814 6 953 587 18 945 276





Financial instruments 2018: Assets Financial Foreign Interest rateinstruments Credit risk Liquidity risk currency risk risk Capital risk

R 000 R 000 R 000 R 000 R 000 R 000Non-current assetsLoans to developers 9 391 9 391 - - - -Investment in listed shares 128 960 128 960 - - - -Swap derivatives 261 056 - - 246 154 - -Other assets 3 071 3 071 - - - -

402 478 141 422 - 246 154 - -Current assetsTrade receivables 74 920 74 920 - - - -Other receivables (1) 294 636 294 636 - - - -Swap derivatives 30 361 - - 22 419 - -Loans to developers 212 804 212 804 - - - -Other assets 11 968 - - - - -Cash and cash equivalents 206 595 206 595 - - 206 595 206 595

831 284 788 955 - 22 419 206 595 206 595Total assets 1 233 762 930 377 - 1 249 752 206 595 206 595Total financial assets 1 271 504 1 044 090 - 267 059 199 019 193 553

Financial instruments: Equities and liabilitiesEquityShare capital and reserves - - - - - 12 861 300LiabilitiesNon-current liabilitiesLoan from non-controlling shareholder 252 165 - 252 165 - 252 165 -Interest bearing borrowings 4 698 774 - 4 698 774 387 360 4 698 774 4 698 774Swap derivatives 307 095 - 307 095 296 467 - -

5 258 034 - 5 258 034 683 827 4 950 939 4 698 774




Financial Foreign Interest rateinstruments Credit risk Liquidity risk currency risk risk Capital risk

R 000 R 000 R 000 R 000 R 000 R 000Current liabilities Trade and other payables (2) 384 809 - 384 809 - - -Interest bearing borrowings 1 791 376 - 1 791 376 - 1 791 376 1 791 376Swap derivatives 22 469 - 22 469 12 003 - -

2 198 654 - 2 198 654 12 003 1 791 376 1 791 376Total liabilities 7 456 688 - 7 456 688 695 830 6 742 315 6 490 150Total equity and liabilities 7 456 688 - 7 456 688 695 830 6 742 315 19 351 450

(1) Included in other receivables are VAT and prepayments which are non-financial assets. The prior year financial statements disclosed R64.807m prepayments as a financial asset at amortisedcost. This has been correctly classified as a non-financial instrument in the 2018 comparative figures in the 2019 financial statements.

(2) Included in trade and other payables are VAT and rentals received in advance which are non-financial assets.

Liquidity riskLiquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.

The Group's policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim it seeks to maintain cash balances and agreedfacilities to meet expected requirements for a period of at least 3 months. The Group also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on a portion of its long-term borrowings this is further discussed in the 'interest rate risk' section below.

The liquidity risk of each Group entity is managed centrally by the group treasury function. Each operating unit within the Group has operational cash requirements based on the approved budgets.The budgets are set locally and agreed by the Board in advance enabling the Group's cash requirements to be anticipated. Where operational cash requirements of Group entities need to beincreased, approval must be sought from the Chief Financial Officer.

The repayment profile does not take into account refinancing in respect of interest bearing borrowings and is reflective of the known obligations as at 31 December 2019.




2019 2018 R 000 R 000


Liquidity risk (continued)

Repayment profileTrade and other payables (1) 371 977 461 766Swap derivatives 5 945 2 463Interest bearing borrowings - 925 000Interest on interest bearing borrowings 144 088 123 038Three months or less 522 010 1 512 267

Interest-bearing borrowings 895 019 865 019Swap derivatives 10 826 (11 016)Interest on interest bearing borrowings 408 509 340 904Between three months and one year 1 314 354 1 194 907

Interest-bearing borrowings 5 786 968 4 700 131Swap derivatives 72 539 (2 712)Interest on interest bearing borrowings 1 651 852 445 779Loan from non-controlling shareholder - 252 165Between one and five years 7 511 359 5 395 363

Interest bearing borrowings 300 000 -Swap derivatives (493) -Interest on interest bearing borrowings 31 830 -More than five years 331 337 -

(1) Excluding unclaimed distributions

The Group expects to meet its other obligations from operating cash flows and existing facilities as detailed in note 20.

Market Risk• Foreign currency risk management

The Group is exposed to foreign currency fluctuation through its foreign interest bearing borrowing and Zambian joint venture.

The Group’s investment in joint ventures is denominated in US Dollar. The foreign currency risk is partially off-set by theinterest bearing borrowings and cross currency swaps which are denominated in the same rate.

• Foreign currency sensitivity analysisThe Group is mainly exposed to the US Dollar currency. The following table details the Group's sensitivity to a 5% (2018:5%) fluctuation in the Rand against the US Dollar. The sensitivity rate used when reporting foreign currency risk internallyto key management personnel and represents management's assessment of the reasonably possible change in foreignexchange rates.

A positive number below indicates an increase in profit or equity where the Rand strengthens against the US Dollar. For aweakening of the Rand against the US Dollar, there would be a comparable negative impact on the profit or equity.



2019 2018 R 000 R 000


Profit or loss on financial assets and liabilities 27 630 29 691Profit or loss on derivates (14 000) (14 347)Profit or loss 13 630 15 344

• Interest rate riskThe Group is exposed to interest rate risk through its variable rate cash balances, receivables, payables and interest bearingborrowings. The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings, monitoring cash flows and investing surplus cash at negotiated rates. The Group enters into interest rate swap contracts,from time to time, for the purposes of cash flow hedging. The Group does not apply hedge accounting.

• Interest rate sensitivity analysisThe sensitivity analysis is based on the exposure to interest rates at the reporting date. For floating rate assets and liabilities,the analysis assumes that the amount of asset or liability outstanding at the reporting date was outstanding for the wholeyear. A 50 basis point fluctuation is used, it represents management's reasonable assessment of the possible change ininterest rates. If interest rates were 50 basis points higher or lower and all other variables were constant, the Group's netprofit for the year ended 31 December 2019 would fluctuate by R10.5m (2018: fluctuate by R8.3m).

• Capital risk managementThe Group's capital comprises shareholders' equity and interest bearing borrowings. Capital is actively managed to ensurethat the Group is properly capitalised and funded at all times, having regard to its regulatory needs, prudent managementand the needs of its stakeholders.

The Group has a business planning process that runs on an annual cycle with regular updates to projections. It is throughthis process, which includes risk and sensitivity analysis of forecasts, that the Group's capital is managed.

Specifically, the Group has adopted the following capital management policies:• Maintenance, as a minimum, of capital sufficient to meet the statutory requirements and such additional capital as management believes is necessary.• Maintenance of an appropriate level of liquidity at all times. The Group further ensures that it can meet its expected capital

and financing needs at all times, having regard to the business plans, forecasts and any strategic initiatives.• Maintenance of an appropriate level of issued shares based on approval from the shareholders and the Board.

The Group has both qualitative and quantitative risk management procedures to monitor the key risks and sensitivities ofthe business. This is achieved through scenario analysis and risk assessments. From an understanding of the principal risks,appropriate risk limits and controls are defined.

The Group's capital risk management strategy has remained unchanged from the prior year.

Gearing ratio:

The Group's Audit Committee reviews the capital structure 3 times a year. As part of this review, the committee considersthe cost of capital and the risks associated with each class of capital. The Group limits its borrowing capacity inclusive of itsguarantees to 45% (2018: 45%) of the total property investment and 40% (2018: 40%) exclusive of its guarantees as perthe lenders' covenant requirements. The Board has however elected to impose a debt funding limit of 40% to align itselfwith the Group's long-term strategic level and risk tolerance level.




2019 2018 R 000 R 000


The debt to total property investment ratio at the year-end was as follows:Debt (before effective interest rate adjustment) 6 981 986 6 490 150Total property investments (1) 18 420 603 18 911 139Gearing ratio 37.90% 34.32%

(1) Total property investments includes investment property (at valuation), property under development, properties classifiedas held for disposal, investment in subsidiary companies, joint ventures and listed property share investments.


Credit risk managementCredit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet itscontractual obligations.

Credit risk with regard to trade and other receivables is minimised by the large and diverse tenant base, spread across diverseindustries and geographical areas. The Group does not have any significant credit risk exposure to any single tenant counterparty.

Management has established a credit policy in terms of which each new tenant is individually analysed for credit worthinessbefore the Group's standard payment terms and conditions are offered which include a provision of a deposit. Managementmonitors the financial position of its tenants on an ongoing basis.

Further disclosures regarding trade and other receivables are provided in note 15.

Credit risk attached to the Group's cash and cash equivalents is minimised by its cash resources being placed in money marketinvestments with several financial institutions of high credit standing, in terms of pre-determined exposure limits. Exposurelimits and underlying money market exposures are assessed bi-annually and reviewed by the Audit Committee to limitconcentration to a single institution and to monitor the risks associated with the underlying money market exposures.

Cash in bank and short-term deposits

Short term Cash at bank deposits Total

2019 Rating R 000 R 000 R 000

Absa Bank Limited AA 418 100 518FirstRand Bank Limited AA 82 257 - 82 257Investec Bank Limited AA - 15 634 15 634Nedbank Limited AA 70 204 24 940 95 144

152 879 40 674 193 553

Short term Cash at bank deposits Total

2018 Rating R 000 R 000 R 000

Absa Bank Limited AA 502 100 602FirstRand Bank Limited AA 66 710 - 66 710Investec Bank Limited AA - 21 149 21 149Nedbank Limited AA 67 088 22 889 89 977The Standard Bank of South Africa Limited AA 28 157 - 28 157

162 457 44 138 206 595

The Management monitors the credit ratings of counterparties regularly. As at the reporting date we do not expect any lossesfrom non-performance by the counterparties. For all financial assets to which the impairment requirements have not beenapplied the carrying amount represents the maximum exposure to credit loss.


Hayfields Mall, Cnr Blackburrow Road & Cleland Roads, Hayfields, Pietermaritzburg, KwaZulu Natal



7. INVESTMENT PROPERTYInvestment properties are properties held to earn rentals, and/or appreciation in capital value.It excludes properties occupiedby the Group and includes developments and properties being constructed for future use as investment property. The majorityof the buildings are located on land owned by the Group, but there are certain buildings situated on long-term operating leases(refer to note 11).

Investment properties are initially recognised at the purchase cost, including transaction costs on acquisition, and are revaluedto their fair value at the end of each reporting date. Gains or losses arising from changes in the fair values are reflected in profitor loss and are excluded in determining the distributable income. Investment properties are derecognised upon disposal or whenthe investment properties are permanently withdrawn from use and no future economic benefits are expected from the disposal.Any gain or loss arising on derecognition of the properties (calculated as the difference between the net disposal proceeds andthe carrying amount of the asset) is included in profit or loss in the period in which the properties are derecognised.

Investment properties leased out under operating leases are reflected as investment properties on the statement of financialposition. Where there are fixed increments in rental, the income is recognised on a straight line basis in accordance with IFRS16: Leases. The resulting difference arising from the straight-line basis and contractual cash flows is recognised as an operatinglease obligation.

Deferred expenses comprise tenant installation costs and letting commissions which are amortised on a straight line basis overthe lease period to which they relate. The tenant installations and letting commissions are separately disclosed in this note.As at date of disposal, the unamortised deferred expense is included in the capital profit or loss of the property.

Borrowing costs:Where the Group undertakes a major development or refurbishment of its investment property, interest is capitalised to thecost of the property concerned during the construction period.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.


2019 2018 R 000 R 000

7. INVESTMENT PROPERTY (continued)

Reconciliation of Investment PropertyAt valuation 16 280 493 12 783 947Straight line rental adjustment (275 588) (231 857)Property under development 1 304 835 3 160 250Carrying value at beginning of year 17 309 740 15 712 340

Acquisitions and improvementsAt valuation 357 632 972 973Property under development 418 890 680 532Capitalised interest at valuation (1) 84 452 59 267Total acquisitions and improvements 860 974 1 712 772

DisposalsAt valuation (618 348) (199 357)

Fair value adjustmentAt valuation (404 730) (249 684)Straight line rental adjustment (15 630) (21 472)Property under development (143 292) 182 772Total fair value adjustment (563 652) (88 384)

Net transfer to/(from) property under development 1 878 239 (2 776 863)Net transfer to/(from) investment property (1 878 239) 2 776 863

Transfer of properties classified as held for disposalAt valuation (2) (211 610) 194 628Straight line rental adjustment 11 552 (22 259)Total transfer of properties classified as held for disposal (200 058) 172 369

Reconciliation of Investment PropertyAt valuation 13 525 822 16 280 493Straight line rental adjustment (279 666) (275 588)Property under development 3 542 500 1 304 835Carrying value at end of year 16 788 656 17 309 740

Letting commissions and tenant installationsCarrying value at the beginning of the year 42 893 48 187Amortisation during the year (22 419) (23 586)Additions during the year 26 712 18 636Transfers to property held for disposal (2) (3 137) (344)Carrying value at the end of the year 44 049 42 893

(1) As detailed in note 34.





The fair value of the portfolio for the current year was determined by an independent registered valuer, Quadrant PropertiesProprietary Limited. The fair value of the industrial, retail and commercial portfolio of investment properties, excluding propertiessubject to unconditional contracted sales, was based on the discounted cash flow method.

The fair value of the inner-city retail, residential and commercial investment properties was based on the capitalisation of thenet income earnings in perpetuity. The discounted cash flow method is not appropriate due to the short term nature of theportfolio's leases.

The valuer has appropriate qualifications and experience in the valuation of properties in the relevant locations.

The fair value was approved on 28 February 2020 by the Board of Directors.

The independent valuers applied current market related assumptions to the risks in rental streams of properties. Discount andcapitalisation rates in the respective sectors ranged as follows:

2019 2018

Discount Capitalisation Discount Capitalisationrate (%) rate (%) rate (%) rate (%)

Industrial 13.50 - 18.25 8.00 - 12.25 14.00 - 17.00 8.00 - 11.00Retail 14.50 - 16.50 8.50 - 10.50 14.00 - 17.50 8.00 - 11.50Commercial 15.25 - 17.00 9.25 - 11.00 15.00 - 16.75 9.00 - 10.75Storage (1) - - 16.00 10.00AFHCO N/A 9.00 - 12.00 N/A 9.25 - 12.00

(1) Storage was classified as a separate sector in 2018. However, since the units are situated predominately in retail centresand managed as an extension of the Group's retail assets this is classified as retail in 2019.

Certain properties are subject to mortgage bonds in favor of lenders as detailed in note 20.

The following table analyses the investment properties that are measured at fair value subsequent to initial recognition andprovides information about the fair value hierarchy.

Comaro Crossing, Cnr Comaro Street & Boundary Lane, Oakdene, Gauteng




2019 2018 R 000 R 000


Investment propertiesAt valuation 13 525 822 16 280 493Property under development 3 542 500 1 304 835Held for disposal 304 510 215 672

17 372 832 17 801 000

Management has reviewed the methodology and assumptions and are satisfied that the valuations are representative of thecurrent and projected portfolio performance.

The sensitivity analysis is based on the exposure to the discount rates and growth rates at the reporting date which is the mostsensitive variable in determining the valuation.

A 50 basis points increase or decrease in the discount rate and a 100 basis points increase or decrease in growth rates representsmanagement's reasonable assessment of the possible change in market rates which will have the following impact on theinvestment property value:

Growth rate(1.0%) Current 1.0%

R 000 R 000 R 000

Investment in investment properties 2019Discount rate(0.5%) 16 824 570 17 750 564 18 793 670Current 16 484 811 17 372 832 18 403 2310.5% 16 094 971 16 971 585 18 968 482

Investment in investment properties 2018Discount rate(0.5%) 17 461 693 18 284 967 19 222 382Current 17 052 587 17 801 000 18 759 4820.5% 16 660 486 17 435 969 18 315 550

8. INVESTMENT IN JOINT ARRANGEMENTSThe Group has multiple joint arrangements, including investments in joint ventures and joint operations. In the joint venturearrangements the owners require unanimous consent in the decision making that drives the profitability of the arrangements.In the joint operation, the owners have a direct right to the asset and obligation in respect of the liability, namely the investmentproperty and shareholders loan. By contrast, in the joint venture, the owners have a right to the net assets of the business,which is generally indicated when the owners have a joint shareholding in a property holding company.

All joint arrangements are strategic to the Group's activities.

Joint operationsJointly controlled operations are accounted for by including the Group's share of the jointly controlled assets, liabilities, revenuesand expenses on a line-by-line basis in the financial statements from the date that joint control commences until the date thatjoint control ceases. The Group accounts for these assets, liabilities, revenues and expenses relating to its interest in a jointoperation in accordance with IFRS 11 Joint Arrangements.



8. INVESTMENT IN JOINT ARRANGEMENTS (continued)

Details of the Group's material joint operations are as follows:

50 GriffithsUmlazi Mega Mxenge Stellenbosch

2019 (R 000) City Highway Square

Non-current assets 937 414 54 872 215 109Current assets 36 406 2 417 13 678Total assets 973 820 57 289 228 787

Non-current liabilities (295 201) (46 907) (139 888)Current liabilities (309 587) (2 466) (10 901)Total liabilities (604 788) (49 373) (150 789)

Revenue 125 661 6 983 29 133Profit from joint operations 64 567 3 459 18 284

These jointly controlled operations are not in separate legal entities but are governed by co-owner agreements, which stipulatesthe right to the assets and obligation to the liabilities.

The reconciliation of the summarised financial information set out below is based on the joint arrangement in full and not theGroup's ownership thereof.

Place of Portion ofincorporation and ownership Distributions

Name of joint principal place of 2019 2018 2019 2018operation Principal activity business % % R 000 R 000

Umlazi Mega City Property entity earning Durban, KwaZulu 75% 75% 51 430 45 249net rental income Natal, South Africa

50 Griffiths Mxenge Property entity earning Durban, KwaZulu 75% 75% 2 027 2 943Highway net rental income Natal, South AfricaStellenbosch Square Property entity earning Stellenbosch, 50% 50% 9 011 7 120

net rental income Western Cape,South Africa

50 GriffithsUmlazi Mega Mxenge Stellenbosch

2018 (R 000) City Highway Square

Non-current assets 912 691 52 772 211 936Current assets 35 710 3 377 11 613Total assets 948 401 56 149 223 549

Non-current liabilities 275 761 46 800 134 867Current liabilities 298 391 2 084 10 948Total liabilities 574 152 48 884 145 815

Revenue 129 194 6 344 27 286Profit from joint operations 71 904 1 242 20 843





Joint venturesThe Group accounts for the investments in joint ventures using the equity method. The joint venture is initially recognised atcost and adjusted thereafter to recognise the Group's share of the profit or loss and other comprehensive income of the jointventure. The Group reflects the joint venture at fair value at each reporting period as the underlying joint venture measuresits assets and liabilities at fair value. Upon acquisition there may be a gain on bargain purchase or goodwill which is subject toimpairment testing. Refer to the goodwill policy in note 10 for further detail.

The Group has ownership in the Mauritian legal entities which has 99.9% ownership in the Zambian entities.

The principal place of business is Lusaka Zambia.

The fair value of the identifiable assets, liabilities, revenue and profit or loss are shown below. This is representative of 100%of the respective entities and not the Group's ownership thereof.

Details of the Group's material joint ventures are shown below:

Ancona Graduare Premier LMMauritius Mauritius & C Mauritius

2019 (R 000) Limited Limited Limited Total

Non-current assets 258 272 1 266 708 434 444 1 959 424Current assets 5 218 361 866 19 966 387 050Total assets 263 490 1 628 574 454 410 2 346 474

Non-current liabilties 22 064 164 604 3 066 189 734Current liabilities 1 618 189 220 104 692 295 530Total liabilities 23 682 353 824 107 758 485 264

Revenue 27 206 150 281 44 594 222 081Profit from joint ventures 18 019 34 907 (20 856) 32 070

Reconciliation of the above summarisedinformation

Net assets of the joint venture 239 808 1 274 750 346 652 1 861 210Proportion of the Group's ownership interestin the joint ventures 50% 50% 50% 50%

Carrying amount of the Group's interestin joint ventures 119 904 637 375 173 326 930 605




2019 2018 R 000 R 000

Carrying value at beginning of year 981 179 847 033Profit from investment in joint ventures (1) 17 439 38 818Foreign exchange adjustments on investment in joint ventures (25 730) 139 098Advance from investment in joint ventures (42 283) (43 770)Carrying value at end of year 930 605 981 179

(1) The profit from the joint ventures is due to the profit in the underlying company.

Ancona Graduare Premier LMMauritius Mauritius & C Mauritius

2018 (R 000) Limited Limited Limited Total

Non-current assets 262 960 1 337 742 397 298 1 998 000Current assets 6 266 423 664 75 614 505 544Total assets 269 226 1 761 406 472 912 2 503 544

Non-current liabilities 31 176 277 148 2 096 310 420Current liabilities 10 246 156 358 64 162 230 766Total liabilities 41 422 433 506 66 258 541 186

Revenue 25 588 143 057 43 035 211 680Profit and loss from joint ventures 1 688 62 391 13 556 77 635

Reconciliation of the above summarisedinformation

Net assets of the joint venture 227 804 1 327 900 406 654 1 962 358Proportion of the Group's ownership interestin the joint ventures 50% 50% 50% 50%

Carrying amount of the Group's interestin joint ventures 113 902 663 950 203 327 981 179

In 2015, the joint venture companies were acquired with the following guarantees:• Two year net income guarantee linked to the joint ventures' net income, excluding interest.• Four year purchase price guarantee linked to the joint ventures' yield.• Five year tax indemnity.

During the year there was a shortfall in the income linked guarantee resulting in the income guarantee receivable ofR2 497 239 (2018: R866 089) recognised through profit and loss. This guarantee is not included in the investment in the jointventures. This has been recognised as other income in the statement of comprehensive income.

The value of the investment in the joint ventures is deemed to be that of the underlying investment properties as the jointventures fully distribute all distributable income. The fair value of the entire portfolio of investment properties was determinedby independent registered valuers and approved on 17 February 2020 by the Board of Directors.




57 Sarel Baard Crescent, Centurion


The sensitivity analysis of the Group's ownership of the underlying investment properties in the joint ventures is based on theexposure to the discount rates and growth rates at the reporting date. A 50 basis points increase or decrease in the discountrate and a 100 basis points increase or decrease in growth rates represents management's reasonable assessment of the possiblechange in market rates:

Growth rate(1.0%) Current 1.0%

R 000 R 000 R 000

Investment property in joint ventures 2019Discount rate(0.5%) 939 580 982 409 1 035 723Current 910 292 951 230 1 002 1910.5% 882 211 921 351 970 073

Investment property in joint ventures 2018Discount rate(0.5%) 990 476 1 033 522 1 086 965Current 958 304 1 000 464 1 050 1280.5% 927 471 966 456 1 014 857



9. PROPERTY, PLANT AND EQUIPMENTProperty, plant and equipment is initially measured at cost, including any directly attributable transaction costs.

Property plant and equipment is carried at cost less accumulated depreciation and any impairment losses. Property plant andequipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value anddepreciation ceases when the residual value exceeds the carrying value. The residual value useful life and depreciation methodof each asset is reviewed at the end of each reporting period. Management assesses the asset for impairment when there isan indication of impairment.

The gain or loss arising from derecognition of an item of property plant and equipment is included in profit or loss when theitem is derecognised.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item YearsLeasehold improvements 4Plant and machinery 6Furniture and fixtures 6Motor vehicles 5Office equipment 3IT equipment 3Computer software 3

2019 (R 000) 2018 (R 000)Accumulated Accumulated

Cost depreciation Carrying value Cost depreciation Carrying value

Leasehold improvements 245 (242) 3 245 (230) 15Plant and machinery 2 374 (1 222) 1 152 2 163 (837) 1 326Furniture and fixtures 14 466 (6 139) 8 327 12 684 (3 812) 8 872Motor vehicles 1 450 (741) 709 1 468 (478) 990Office equipment 970 (858) 112 1 004 (745) 259IT equipment 13 499 (8 684) 4 815 10 061 (5 916) 4 145Computer software 2 558 (1 643) 915 2 156 (1 367) 789Total 35 562 (19 529) 16 033 29 781 (13 385) 16 396

Reconciliation of property, plant and equipment - 2019 (R 000)

Opening Closing Balance Additions Depreciation Balance

Leasehold property 15 - (12) 3Plant and machinery 1 326 211 (385) 1 152Furniture and fixtures 8 872 1 748 (2 293) 8 327Motor vehicles 990 13 (294) 709Office equipment 259 26 (173) 112IT equipment 4 145 3 710 (3 040) 4 815Computer software 789 396 (270) 915

16 396 6 104 (6 467) 16 033




10. INTANGIBLE ASSETS AND GOODWILLIntangible assetsIntangible assets arising from business combinations are recognised separately from goodwill and are initially recognised attheir fair value at the acquisition date which represents their cost. The identification and initial measurement process areperformed as part of the purchase price allocation. The Group has no internally generated intangible assets.

Subsequent to initial recognition intangible assets acquired separately or through a business combination are reported at costand accumulated impairment losses.

GoodwillGoodwill is initially measured at cost being the excess of the purchase price over the Group's share of the net identifiable assetsacquired measured at fair value at the date of acquisition.

Where the fair value of the net identifiable assets at fair value exceeds the purchase price the excess is immediately recognisedin the statement of comprehensive income as a gain on bargain purchase.

Where the initial accounting for business combinations has provisionally been determined and new information emerges within12 months of the acquisition date, adjustments are made to these values against goodwill. In addition goodwill is adjusted forchanges in the estimated value of contingent considerations given in the business combination when they arise.

Goodwill is reflected at cost less any accumulated impairment losses. Goodwill is not amortised but is tested for impairment ateach reporting date. Impairment is determined by assessing the recoverable amount which is the higher of fair value less coststo sell and value in use, of the cash-generating unit to which the goodwill relates. The impairment loss is applied firstly to thecarrying amount of goodwill thereafter any remaining impairment is allocated to the other assets of the acquired business.Impairment losses on goodwill are not reversed.

2019 (R 000) 2018 (R 000)Accumulated Carrying Accumulated Carrying

Cost impairment value Cost impairment value

Afhco Brand 71 800 - 71 800 71 800 - 71 800Goodwill on Afhco Holdings 10 104 - 10 104 10 104 - 10 104Total 81 904 - 81 904 81 904 - 81 904

Goodwill arose on the acquisition of a subsidiary. The carrying value of the Afhco Brand is R71 800 000 and is assessed forimpairment at the end of each reporting period as it has an indefinite useful life.

The period in which the Brand will generate net cash inflow is not limited resulting in the useful life to be indefinite. The Brandis determined to have an indefinite useful life based on the relative strength and market recognition. The Brand has been inexistence for a considerable amount of time.

9. PROPERTY, PLANT AND EQUIPMENT (continued)

Reconciliation of property, plant and equipment - 2018 (R 000)

Opening Closing Balance Additions Depreciation Balance

Leasehold property 77 - (62) 15Plant and machinery 1 144 629 (447) 1 326Furniture and fixtures 8 054 2 967 (2 149) 8 872Motor vehicles 1 248 - (258) 990Office equipment 429 49 (219) 259IT equipment 5 134 1 770 (2 759) 4 145Computer software 617 479 (307) 789Total 16 703 5 894 (6 201) 16 396



10. INTANGIBLE ASSETS AND GOODWILL (continued)

The fair value of the Afhco brand and goodwill in respect of Afhco holdings was determined using an income based approachto ascertain if the goodwill and brand is impaired. The discounted cashflows of Afhco was determined using a 3 year forecastprojected for a further 7 years using an at acquisition yield of 9.9% and thereafter determining a terminal value. This aggregatedvalue is discounted using a WACC of 12.4% (2018: 13.0%).

A 500 basis points increase or decrease in the weighted average cost of capital and/or the discount rate will not result in animpairment.

11. LEASEHOLD PROPERTYLeasehold property as a lessee:All leases are accounted for by recognising a right-of-use asset and a lease liability except for:• Low value leases with a value when new equal to or less than R100 000; and• Short term leases with a duration of 12 months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term with thediscount rate determined by reference to the Group's weighted average cost of debt rate (''WACD'') on commencement of thelease. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate.In such cases the initial measurement of the lease liability assumes the variable element will remain unchanged throughoutthe lease term. Other variable lease payments are expensed in the period to which they relate.

On initial recognition the carrying value of the lease liability also includes:• amounts expected to be payable under any residual value guarantee; and• any penalties payable for terminating the lease if the term of the lease has been estimated on the basis of termination option

being exercised.

Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received andincreased for:• lease payments made at or before commencement of the lease;• initial direct costs incurred.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balanceoutstanding and are reduced for lease payments made. Right-of-use assets are amortised on a straight-line basis over theremaining term of the lease or over the remaining economic life of the asset if this is judged to be shorter than the lease term.

When the Group revises its estimate of the term of any lease it adjusts the carrying amount of the lease liability to reflect thepayments to be made over the revised term which are discounted at the same discount rate that applied at the commencementof the lease. The carrying value of lease liabilities is similarly revised when the variable element of future lease paymentsdependent on a rate is revised. In both cases an equivalent adjustment is made to the carrying value of the right-of-use assetwith the revised carrying amount being amortised over the remaining revised lease term.

Any gain or loss arising from the partial or full termination of a lease (i.e. derecognition of the right-of-use asset and thecorresponding lease liability) is recognised in profit or loss in the period in which it arises.

The Group elected to adopt IFRS 16 retrospectively from 1 January 2019 using the modified retrospective approach withoutrestating comparative figures. IFRS 16 replaces the existing lease standard and the related interpretations.

In applying IFRS 16 for the first time, the Group used certain practical expedients permitted by the standard, namely a singlediscount rate for leases with reasonably similar characteristics. The liability was measured at the present value of the remaininglease payments, discounted using the incremental WACD rate at 1 January 2019. The incremental WACD rate applied to thelease liability on 1 January 2019 was 9.38%.




11. LEASEHOLD PROPERTY (continued)

The change in accounting policy had the following impact on the recognition of right-of-use asset and lease liability:

2019 2018 R 000 R 000

Right-of-use assetRecognised at the beginning of the year 16 357 -Additions 2 678 -Depreciation (5 933) -Balance as at the end of the year 13 102 -

Lease liabilityRecognised at the beginning of the year 24 169 -Additions 2 678 -Finance cost 2 212 -Lease payments (9 076) -Balance as at the end of the year 19 983 -

Lease liabilityNon-current liability 14 275 -Current liability 5 708 -Balance as at the end of the year 19 983 -

Lease expense excluded from lease liabilitesLow value lease expense 490 -Expense relating to variable lease payments not included in the measurement of lease liabilities 18 566 -

19 056 -

The minimum future lease payments payable under non-cancellable leases areas follows:Not later than 1 year 7 518 7 661Later than 1 year and not later than 5 years 14 386 29 468Later than 5 years 5 654 284 369

27 558 321 498

The future minimum sub-lease payments receivable under non-cancellable leasesare as follows:Not later than 1 year 62 883 62 262Later than 1 year and not later than 5 years 106 263 115 609Later than 5 years 144 164 154 696

313 310 332 567

In determining the right of use of asset and lease liability, renewal options contained in the lease were excluded where theescalation rates were uncertain. As this is the first year of adoption of IFRS 16, the future lease payments payable later than5 years, as disclosed in the prior year, decreased substantially and gave rise to the change in expiry date as stated below.

Lease expense relates to leases of land with leases expiring up to 2029 (2018: 2060), with certain leases containing leaseextensions. These lease extensions are renegotiated as per the lease agreements and are considered to be new leases.

Lease income from leasehold properties with non-cancellable operating leases relates to leases expiring up to 2044 (2018:2044).

The contingent rental expense is calculated as a percentage of the net rental income generated by the property.



12. LOANS TO DEVELOPERSRefer to note 6 for the accounting policy.

One Triple L Projects Proprietary Limited 131 767 8 161Loan bearing interest at 10.0% (2018: 10.25%) per annum. This loan is secured and willbe settled on the transfer of the underlying properties during 2020.JR 209 Investments Proprietary Limited - 183 541Loan bearing interest at 11.20% (2018: 10.20%) per annum. This loan was repaid duringthe year on transfer of the properties and was secured by a R250m and R50m mortgagebond.JR 209 Investments Proprietary Limited - 30 493Loan bearing interest at 9.52% (2018: 9.52%) per annum. This loan was paid on 31 March2019 and was secured by a R130m and R250m mortgage bond.Carrying value at the end of year 131 767 222 195

Non-current asset - 9 391Current assets 131 767 212 804Total 131 767 222 195

Reconciliation of loans to developersCarrying value at the beginning of the year 222 195 394 921Loans settled (207 514) (202 726)Loans granted 117 086 30 000Carrying value at end of year 131 767 222 195

Loans to developersAmortised cost: settled through cash (1) - 101 994Fair value through profit or loss: settled through the acquisition of properties (level 3as per note 6) (2) 131 767 120 201Carrying value at end of year 131 767 222 195

The Group has provided advances to developers who have raised the balance from third parties.

(1) Management considers the ECL on the loans to developers to be nil as these loans are adequately secured by propertiesshares and/or suretyships.(2) The fair value of the loans to developers settled through the aquisition of properties was based on the capitalisation of thenet income in perpetuity of the underlying property.



2019 2018 R 000 R 000

11. LEASEHOLD PROPERTY (continued)

Reconciliation of the lease liability 1 January 2019

Operating lease commitments disclosed as 31 December 2018 321 498 - Discounted using the incremental borrowing rate at 1 January 2019 60 527 - Items not included in the IFRS 16 lease liability (1) (36 359) - Lease liabilities recognised at 1 January 2019 24 168 -

(1) Included in this balance are leases that includes escalations that are variable and onlydetermined when leases are renewed.


2019 2018 R 000 R 000

13. OTHER FINANCIAL ASSETSRefer to note 6 for the accounting policy.

Non-current assetsListed sharesTranscend Residential Property Fund (1) 42 966 36 960Safari Investments RSA Limited (1) 74 200 92 000

117 166 128 960

Non-listed sharesEdcon (2) 1 522 -Impairment (1 522) -

- -

Other financial assetsCity Kidz Preschool NPC (3) 6 253 3 071

Current assetsOther financial assetsCity Kidz Preschool NPC (3) - 2 098Electprops Commercial property (4) - 9 870Sun Malti Trios Trading Enterprises CC (6) 2 004 -Four Arrows Investments 130 Proprietary Limited (7) 7 882 -

9 886 11 968Loans receivableCalgro M3 Developments Limited (5) 113 338 -Calgro M3 Developments Limited (5) 104 000 -

217 338 -227 224 11 968

Development prepayment (4)

Calgro M3 Developments Limited (8) - 155 135 227 224 167 103

Total other assets 350 643 299 134

Level 1 as detailed in note 6Reconciliation of investment in listed sharesCarrying value at beginning of year 128 960 170 260Fair value loss (11 794) (41 300)Carrying value at end of year 117 166 128 960

(1) During 2016, the Group acquired 10% of the ordinary share capital of Transcend Residential Property Fund Limited aspecialised residential property fund that is listed on the AltX Board of the JSE. During 2017 the Group acquired 9% of theordinary share capital of Safari Investments RSA Limited a property investment company listed on the JSE as a Real EstateInvestment Trust (“REIT”). The directors do not consider that the Group has the ability to exercise any significant influenceover these Companies.

(2) During the year, the Group elected to become an investor in Edcon’s restructuring. The investment was fully impaired.

(3) During the year the previous three loans advanced to City Kidz Preschool NPC (''City Kidz'') with interest rates ranging fromprime less 0.5% to prime and repayable at June 2020 and August 2023 were consolidated into one loan. This loan is securedby property held by City Kidz bears interest at prime less 0.5% and is repayable on 1 December 2024.

Management considers the ECL to be negligible, as the amount is adequately secured by the underlying property.



13. OTHER FINANCIAL ASSETS (continued)(4) During 2017, the Group acquired Electprops 91 Proprietary Limited (“Electprops”). The amount above relates to investmentproperty in Electprops which the Group had an option to sell back to the sellers. There was a related liability on the balancesheet that represents the liability that needs to be settled should the Group choose to incorporate the commercial propertyinto the investment property. During the current year, the Group excluded this portion from the investment property balanceand hence reversed the financial asset balance and the corresponding liability.

(5) The net indebtedness owed to the Company will be settled with property to the value of R113 338 024 and a security noteissued by Calgro M3 Developments Limited valued at R104 000 000, bearing interest at 3 month JIBAR plus 3.95% and ismaturing on 5 April 2022.

Management considers the ECL to be negligible as the amount will be settled within 12 months through a property transaction.

(6) During the year R2 003 836 was provided as support to a BBBEE company to acquire vehicles to be used for the transportof students to and from campuses. This loan is secured by a notarial bond in respect of the vehicles bears interest at the primerate and is repayable on 16 November 2023.

Management considers the ECL to be negligible as the amount is adequately secured by the underlying vehicles.

(7) During the year R10m was advanced to the purchaser of one of the Group's investment properties. This amortising loan issecured by a mortgage bond in respect of the investment property and is repayable on 31 July 2020 at a rate of 10.5%.

Management considers the ECL to be negligible as the amount is adequately supported by the underlying property.

(8) The balance related to an advance payment paid to Calgro M3 Developments Limited in respect of the construction of unitsacquired by the Group on 1 January 2019 as detailed in note 19. 2019 2018 R 000 R 000

14. SWAP DERIVATIVESRefer to note 6 for accounting policy.

Swap derivatives at fair value through profit or loss:

Interest rate swap derivativesNon-current assets 3 923 14 902Current assets 1 543 7 942Non-current liabilities (56 167) (10 688)Current liabilities (27 253) (10 466)Carrying amount of net (liability)/asset (77 954) 1 690

Reconciliation of interest rate swap derivativesCarrying value at beginning of year 1 690 (27 476)Fair value (gain)/loss (79 312) 27 912Foreign adjustment (332) 1 254Carrying value at end of year (77 954) 1 690

Interest rate swap agreements, for 3 - 7 years loans linked to JIBAR or LIBOR, have been concluded to convert floating ratesto fixed rates. The total nominal value of the swaps is R4 457m (2018: R4 306m).




2019 2018 R 000 R 000

14. SWAP DERIVATIVES (continued)

Cross currency swap derivativesNon-current assets 246 006 246 154Current assets 21 053 22 419Non-current liabilities (292 999) (296 407)Current liabilities (11 813) (12 003)Carrying amount of net asset / (liability) (37 753) (39 837)

Reconciliation of cross currency swap derivativesCarrying value at beginning of year (39 837) 5 906Fair value loss (5 201) (3 038)Foreign adjustment 7 285 (42 705)Carrying value at end of year (37 753) (39 837)

Level 2 as detailed in note 6.

The ABSA cross currency loans are made up of the following facilities:• R131 800 000 receivable bearing interest at 9.193% (2018: 9.160%) per annum receivable

on 19 September 2022;• USD 10 000 000 payable bearing interest at 3.980% (2018: 3.980%) per annum repayable

on 19 September 2022;• R119 800 000 receivable bearing interest at 9.177% (2018: 9.027%) per annum receivable

26 January 2023; and• USD 10 000 000 payable bearing interest at 4.360% (2018: 4.360%) per annum repayable

on 26 January 2023.

The interest rate and cross currency swap derivatives are valued based on the discountedcashflow method. Future cashflows are estimated based on exchange and forward interestrates (from observable yield curves at the end of the reporting period) and contract interestrates, discounted at a rate that reflects the credit risk of various counterparties.

The following table indicates the periods in which the net undiscounted cash flows are expectedto occur:Not later than 1 year (16 771) 8 533Later than 1 year and not later than 5 years (72 539) 2 712More than 5 years 493 -Expected cash (outflow)/inflow (88 817) 11 245



2019 2018 R 000 R 000

15. TRADE AND OTHER RECEIVABLESRefer to note 6 for accounting policy.

Financial instruments at amortised cost:Trade receivables (including VAT) 158 035 113 255Provision for expected credit loss (excluding VAT) (44 980) (38 335)Trade receivables net of provision for expected credit loss 113 055 74 920Other receivables 196 356 291 022Accrued interest 428 3 614

Non-financial instruments:Prepayments 53 784 64 807VAT 12 970 16 751Total trade and other receivables 376 593 451 114

Provision for expected credit lossThe movement in the provision for expected credit loss during the year wasas follows:Balance at the beginning of the year 38 335 22 509Amounts written off during the year (19 837) (13 384)Additional provisions recognised 26 482 29 210Balance at the end of the year 44 980 38 335

The carrying amount of financial assets recorded in the financial statements which is net ofimpairment losses represents the Group's maximum exposure to credit risk without taking intoaccount the value of any collateral obtained.

The provision is carried exclusive of VAT whilst the arrear rentals include VAT. This table hasexcluded the VAT on arrears to provide us with a more suitable comparison between arrearsand the estimated credit loss.

Trade debtors including VAT 158 305 113 255VAT thereon 16 199 10 981Trade debtors excluding VAT 142 106 102 274



East Park Mall, Lusaka, Zambia


15. TRADE AND OTHER RECEIVABLES (continued)

The forward factor in respect of the ECL provision was determined by using the 3 year historical correlation between the changein GDP growth and the change in arrears as a percentage of annual tenant revenue. The average correlation was applied tothe change in GDP growth based on the forecasted GDP growth for 2020 to actual GDP growth in 2019. We believe this to bea good proxy for the ability of our tenants to pay. The Group considers the provision for any material credit risk exposure tobe adequate.

The calculation of the estimated credit loss percentage is shown in the following table.

The table below discloses the trade receivables and provision excluding VAT.

2019

Industrial Retail Commercial Afhco Total

CurrentTrade debtors R 000 1 779 7 722 265 11 640 21 406ECL % 0% 2% 0% 11% 7%Provision R 000 6 187 - 1 389 1 58230 daysTrade debtors R 000 2 287 2 597 294 5 849 11 027ECL % 2% 10% 1% 18% 13%Provision R 000 52 268 3 1 100 1 42360 daysTrade debtors R 000 826 1 510 517 3 433 6 286ECL % 18% 25% 8% 34% 14%Provision R000 149 379 40 1 201 1 76990+ daysTrade debtors R 000 17 555 52 434 3 310 21 861 95 160ECL % 35% 35% 53% 62% 42%Provision R 000 6 413 18 366 1 808 13 619 40 206Total trade debtors 22 447 64 263 4 386 42 783 133 879Total ECL provision 6 620 19 200 1 851 17 309 44 980

The Afhco table above excludes a head office trade receivable of R8,2m. Management considers the ECL to be negligible, asthe amount due is guaranteed by Hizo Cape Property Limited in terms of the purchase agreement.

2018


CurrentTrade debtors R 000 - 3 812 357 10 338 14 507ECL % 0% 2% 0% 3% 2%Provision R 000 - 70 - 268 33830 daysTrade debtors R 000 232 3 095 260 2 638 6 225ECL % 0% 3% 0% 29% 14%Provision R 000 - 88 - 765 85360 daysTrade debtors R 000 19 3 034 193 16 088 19 334ECL % 0% 1% 0% 79% 66%Provision R 000 - 24 - 12 694 12 71890+ daysTrade debtors R 000 10 098 50 874 1 236 - 62 208ECL % 17% 44% 6% 0% 39%Provision R 000 1 753 22 598 - - 24 426Total trade debtors 10 349 60 815 2 046 29 064 102 274Total ECL provision 1 753 22 780 - 13 727 38 335




2019

ECLCurrent 30 days 60 days 90 days Total Assessment:

Other receivables R 000 R 000 R 000 R 000 R 000 R 000Financial assets at amortised costTenants accruals (1) 78 634 4 485 44 68 21 006 108 593 3 288Amounts due from Municipalities (2) 193 861 828 26 388 28 270 -Interest accrual (3) 428 - - - 428 -Sundry debtors (4) 12 787 1 981 1 802 42 923 59 493 1 108

92 042 7 327 7 098 90 317 196 784 4 396

2018

ECLCurrent 30 days 60 days 90 days Total Assessment:

Other receivables R 000 R 000 R 000 R 000 R 000 R 000Financial assets at amortised costTenants accruals (1) 104 537 - - 2 529 107 066 -Amounts due from municipalities (2) 18 671 - - 6 960 25 631 -Guaranteed income 58 435 - - - 58 435 -Escrow 17 423 - - - 17 423 -Interest accrual (3) 6 514 - - - 6 514 -Sundry debtors (4) 20 323 1 135 1 087 57 022 79 567 -

225 903 1 135 1 087 66 511 294 636 -

(1) Tenant accruals relate to recoveries and turnover rental that has not been billed to tenants. When accruals are billed to thetenants, the tenant receivable ECL is applied to these recoveries. We have provided for specific expected credit losses forbalances we deem not to be recoverable and will therefore not be charged to tenants.

(2) This balance relates to deposits with municipal authorities, which will be recouped when a building is sold. We have writtenoff amounts considered to be irrecoverable, and have assessed the risk in respect of the remainder to be negligible.

(3) We have assess the risk of default to be negligible and immaterial at this stage, as the balance is held by a reputable financialinstitution.

(4) The sundry debtors include amounts receivable from various parties, including property managers, sellers, purchasers andco-owners of properties. Debtors are written off when there is no reasonable expectation of recovery. This is assessed on thebasis of the failure of the debtor to agree and commit to a repayment plan and where contractual payments are greater thana period of 90 days. We have assessed the risk of default of these parties individually to be negligible and immaterial at thisstage based on historical transactional activity and our assessment of their future ability to settle the balance. The risk of defaultof the sundry debtors in the 90 days category is partially mitigated by the balance from the co-owners to be applied againstnet property income due to them.

Historical loss ratios were adjusted for forward looking information by increasing these ratios by a factor of 3%. This factorwas determined through consideration of the GDP growth rate for 2018 and 2019 which decrease year on year by 1.6%. Wehave also looked at the increase in the debtors as a percentage of rental income which gave rise to a total increase in the ECLof 3%. The historical loss ratios and the forward looking adjustment of these ratios used at the date of initial application ofIFRS 9 were unchanged at year end. The Group does not consider that any significant change in credit conditions occurred.




2019


CurrentHistorical loss ratio (%) 0% 2% 0% 11% 2%Forward looking adjustments (%) 0% 0% 0% 0% 0%Adjusted historical loss ratio (%) 0% 2% 0% 11% 2%30 daysHistorical loss ratio (%) 2% 11% 1% 19% 13%Forward looking adjustments (%) 0% 0% 0% -1% -1%Adjusted historical loss ratio (%) 2% 11% 1% 18% 12%60 daysHistorical loss ratio (%) 19% 26% 8% 35% 15%Forward looking adjustments (%) -1% -1% 0% -1% -1%Adjusted historical loss ratio (%) 18% 25% 8% 34% 14%90 daysHistorical loss ratio (%) 37% 36% 55% 64% 44%Forward looking adjustments (%) -2% -1% -2% -2% -2%Adjusted historical loss ratio (%) 35% 35% 53% 62% 42%

The following table details the Group's sensitivity to a 1% increase and decrease in the macroeconomics.


Historical rates adjusted for forward looking assumption

2019

R 000


CurrentUpward stress 7 188 1 1 390 1 586ECL based on actual weightings 6 187 - 1 389 1 582Downward stress 6 185 - 1 375 1 56630 daysUpward stress 53 269 4 1 101 1 427ECL based on actual weightings 52 268 3 1 100 1 423Downward stress 51 265 3 1 089 1 40860 daysUpward stress 150 380 41 1 202 1 773ECL based on actual weightings 149 379 40 1 201 1 769Downward stress 148 375 39 1 189 1 75190 daysUpward stress 6 414 18 367 1 809 13 620 40 210ECL based on actual weightings 6 413 18 366 1 808 13 619 40 206Downward stress 6 349 18 182 1 790 13 483 39 804



Green Park Corner, Cnr West Road South & Lower Road, Sandton, Gauteng

2019 2018 R 000 R 000

16. CASH AND CASH EQUIVALENTSRefer to note 6 for accounting policy.

Cash and cash equivalents include cash on hand in banks:Cash and bank balances 43 430 63 254Money market investments and call accounts 40 675 44 138Distributions account 196 192Tenant deposits (1) 109 252 99 011

193 553 206 595

(1) The tenant deposits have a corresponding liability in trade and other payables. The cash is restricted as it is held in a separateaccount and can only be used as per the lease agreement terms.

The ECL is deemed to be nil as the cash and cash equivalents are held by institutions with AA ratings as detailed in note 6.




2019 2018 R 000 R 000

17. PROPERTIES CLASSIFIED AS HELD FOR DISPOSALInvestment properties which have been earmarked as held for sale and comply with incompliance with the IFRS 5: Non-current Assets Held for Sale and Discontinued Operations(''IFRS 15'') recognition criteria are measured in accordance with IAS 40: Investment propertyat fair value. These properties are disclosed as non-current assets held for sale on thestatement of financial position in accordance with IFRS 5. Gains and losses arising upon re-measurement are separately recognised in the statement of comprehensive income.

Reconciliation of properties classified as held for disposalCarrying value beginning of the year 215 672 888 736Net transfer from/(to) investment properties (1) 211 610 (194 628)Disposal (122 772) (478 436)Carrying value at the end of the year 304 510 215 672Straight line valuation adjustment (12 937) (1 386)Straight line rental adjustment 12 937 1 386Carrying value at the end of the year 304 510 215 672

Letting commissions and tenant installationsCarrying value beginning of the year 574 1 535Net transfer from/(to) investment properties (1) 3 137 344Disposal (574) (1 305)Carrying value at the end of the year 3 137 574

Total 307 647 216 246


The above properties are contracted and expected to be transferred by October 2020 (2018: December 2019). The propertiesthat are contracted and unconditional are valued at their expected proceeds on disposals. The properties that are contractedand conditional are valued as detailed in note 7. No impairment losses were recognised as at 31 December 2019 and 2018.The segmental classification of the above properties is disclosed in note 36.

18. SHARE CAPITAL AND RESERVESShare capital and reserves represent the residual interest in the Group's assets after deducting all of its liabilities and havebeen accounted for as equity.

Shares issued by the Group are recognised at the proceeds received net of direct issue cost. Shares repurchased by the Groupare recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue orcancellation of the Group's own shares.



2019 2018 R 000 R 000

18. SHARE CAPITAL AND RESERVES (continued)

Authorised4 000 000 000 shares at no par value (2018: 4 000 000 000)

Issued2 514 732 095 shares (2018: 2 530 689 337 shares) (1) 9 158 387 9 214 835Non-distributable reserves: Share-based payment reserve 8 211 7 340Non-distributable reserves: Operational (2) 2 380 886 3 137 272Distributable reserves 444 205 519 178Non-controlling interests - (17 325)

11 991 689 12 861 300

(1) Refer to note 29 for the weighted average number of shares and the diluted weighted average number of shares.

(2) Included in non-distributable reserves are operational items which are not included in the calculation of distributable income.These include fair value gains and losses of investment properties, listed shares and capital profit and loss on disposal ofinvestment properties as detailed in note 31.

As part of the employee share scheme the Group repurchased 2 942 989 (2018: 439 116) of its shares at R3.22 (2018: R4.49)and a total value of R9 469 595 (2018: R1 973 582).

During the year the Group repurchased 15 957 242 shares at an average price of R3.13 and a total value of R50 084 381. Thisresulted in an antecedent distribution of R1 566 242.

The non-distributable reserves include items of a capital nature which are not distributable to the shareholders.

The statement of changes in equity reflects a detailed analysis of movements in shareholders' funds.

2019 2018 Shares Shares

Reconciliation of number of shares issued (excluding treasury shares):Opening shares (1) 2 525 574 171 2 524 975 497Vested shares (2) 938 149 1 037 790Share repurchase - employee share scheme (2 942 989) (439 116)Share repurchase (15 957 242) -Closing shares 2 507 612 089 2 525 574 171

(1) This is net of treasury shares of 7 114 675 (2018: 5 713 840 shares).


19. NON-CONTROLLING INTERESTNon-controlling interest is measured at fair value and represents the non-controlling interest in the acquiree's identifiable netassets.

During 2018, Afhco Holdings Proprietary Limited held a 51% equity interest in the Afhco Calgro M3 Consortium ProprietaryLimited (the ''Consortium''). Hizo Cape Proprietary Limited held the remaining 49% non-controlling equity interest. The tablebelow reflects the summarised financial information of the Group's subsidiary with non-controlling interest as at 31 December2018 after the elimination of inter-company transaction with other Group Companies.




Stellenbosch Square, Cnr R44 & Webersvallei Road, Stellenbosch, Western Cape

2018 R 000

19. NON-CONTROLLING INTEREST (continued)

Revenue 64 586Profit / (loss) for the year (36 395)Profit / (loss) attributable to non-controlling interest (17 833)

Non-current assets 738 271Current assets 285 184Non-current liabilities (1) 252 165Non-current liabilities other (2) 236 911Current liabilities 569 736Net liabilities (35 357)

Net liabilities attributable to non-controlling interest (17 325)

(1) Hizo Cape Proprietary limited provided funding to the Consortium to acquire investment property. The loan was unsecuredwith Interest levied at prime and was settled as part of the restructuring transaction.

(2) This loan relates to debt funding procured by the Consortium to finance the acquisition of investment property. The non-controlling shareholder settled its share of the loan as part of the restructure through a reduction of the shareholder loan amountdue to it. The Group refinanced this loan as part of its overall refinancing. See note 20.

With effect from 1 January 2019, the Group acquired the 49% non-controlling equity interest from the Consortium at whichdate Afhco Holdings Proprietary Limited became the sole shareholder. The Consortium disposed of the following propertyinvestments: Fleurhof Lifestyle Estate, Scottsdene and South Hills Houses.

The impact of the transaction resulted in an upward revaluation of investment property to the selling price of R31.6m with anon-controlling interest impact of R15.5m. The transaction resulted in a net profit of R1.8m.



2019 2018 R 000 R 000

20. INTEREST BEARING BORROWINGSRefer to note 6 for accounting policy.

Absa Bank LimitedAbsa Bank LimitedLoan bearing interest at 8.620% (2018: 8.970%) per annum and paid quarterly. 250 000 250 000This loan is repayable on 11 December 2020. (Facility A). (6&7)

Loan bearing interest at 8.750% (2018: 9.100%) per annum and paid quarterly. 250 000 250 000This loan is repayable on 11 December 2021. (Facility B) (6)

Loan bearing interest at 8.810% (2018: 9.160%) per annum and paid quarterly.. 500 000 500 000This loan is repayable on 11 December 2022. (Facility C) (6)

Loan bearing interest at 8.850% (2018: 8.850%) per annum and paid quarterly. - 500 000This loan was repaid 11 June 2019. (Facility D)Loan bearing interest at 8.658% (2018: 8.650%) per annum and paid quarterly. - 425 000This loan was repaid on 7 May 2019. (Facility F) (5&6)

Loan bearing interest at 8.342% per annum and paid quarterly. 300 000 -This loan is repayable on 7 May 2022. (Facility I1) (6)

Loan bearing interest at 8.472% per annum and paid quarterly. - -This loan is repayable on 7 May 2022. (Facility I1) (5&6)

Loan bearing interest at 8.462% per annum and paid quarterly. 636 500 -This loan is repayable on 7 May 2023. (Facility J1) (6)

Loan bearing interest at 8.567% per annum and paid quarterly. 585 000 -This loan is repayable on 7 May 2024. (Facility K1) (6)

Loan bearing interest at 8.742% per annum and paid quarterly. 307 500 -This loan is repayable on 7 May 2025. (Facility L1) (6)

Loan bearing interest at 3.691 (2018: 4.392%) per annum and paid quarterly. 378 000 387 360This loan is repayable on 1 November 2020. (4)

3 207 000 2 312 360

Agense Francaise Development (AFD)Loan bearing interest at 6.880% (2018: 6.880%) per annum and paid quarterly. 76 587 93 605This loan is repayable in instalments until 15 April 2024. (3)




2019 2018 R 000 R 000

20. INTEREST BEARING BORROWINGS (continued)

Investec Bank LimitedLoan bearing interest at 9.000% (2018: 9.000%) per annum and paid quarterly. - 550 000This loan was repaid on 7 May 2019. (2)

Loan bearing interest at 8.650% per annum and paid quarterly. 550 000 -This loan is repayable on 13 December 2021. (Facility M1) (6)

Nedbank LimitedLoan bearing interest at 8.950% (2018: 8.950%) per annum and paid quarterly. - 548 000This loan was repaid on 18 June 2019. (1)

Loan bearing interest at 8.618% per annum and paid quarterly. 512 750 -This loan is repayable on 7 May 2023. (Facility J2) (6)

Loan bearing interest at 8.678% per annum and paid quarterly. 564 250 -This loan is repayable on 7 May 2024. (Facility K2) (6)

Loan bearing interest at 8.788% per annum and paid quarterly. 300 000 -This loan is repayable on 7 May 2025. (Facility L2) (6)

1 377 000 548 000

Old Mutual Specialised Finance Proprietary LimitedLoan bearing interest at 8.800% (2018: 8.667%) per annum. - 270 000This loan was repaid on 7 May 2019.Loan bearing interest at 8.800% (2018: 8.667%) per annum. - 30 000This loan was repaid on 7 May 2019.Loan bearing interest at 8.858% (2018: 8.717%) per annum. - 200 000This loan was repaid on 7 May 2019. - 500 000

Standard Bank of South Africa LimitedLoan bearing interest at 8.950% (2018: 8.950%) per annum and paid quarterly. - 300 000This loan was repaid on 18 June 2019. (1)

Loan bearing interest at 8.620% (2018: 8.970%) per annum and paid quarterly. 250 000 250 000This loan is repayable on 11 December 2020. (Facility A). (6&7)

Loan bearing interest at 8.750% (2018: 9.100%) per annum and paid quarterly. 250 000 250 000This loan is repayable on 11 December 2021. (Facility B) (6)

Loan bearing interest at 8.245% (2018: 8.600%) per annum and paid quarterly. 114 000 -This loan is repayable on the 30 June 2022. (Facility G) (5&6)

Loan bearing interest at 8.810% (2018: 9.160%) per annum and paid quarterly. 500 000 500 000This loan is repayable on 11 December 2022. (Facility C) (6)

Loan bearing interest at 8.938% (2018: 8.930%) per annum and paid quarterly. - 750 000This loan was repaid on 18 June 2019. (2)

Loan bearing interest at 9.500% (2018: 9.500%) per annum and paid quarterly. - 236 185This loan was repaid and terminated on 7 May 2019.Loan bearing interest at 8.448% per annum and paid quarterly. 629 000 -This loan is repayable on 7 May 2022. (Facility I3) (6)

1 743 000 2 286 185



2019 2018 R 000 R 000


State Bank of IndiaLoan bearing interest at 8.930% (2018: 8.930%) per annum. - 200 000This loan was repaid on 18 June 2019. (2)

Total interest bearing borrowings 6 953 587 6 490 150

Non-current borrowings 6 057 457 4 698 774Current borrowings 896 130 1 791 376

6 953 587 6 490 150

(1) Forms part of the R2bn Syndicated loan of which R1.152bn was settled during 2017 and the remaining R848m was settledduring 2019.

(2) Forms part of the R1.5bn Syndicated loan which was settled during 2019.

(3) The Group holds this Rand denominated loan as part of the acquisition of Atkinson House and Platinum Place.

(4) This loan is denominated in USD. The loan has been restated at the prevailing USD to Rand exchange rate at year end. On26 February 2020 this facility has been extended to 1 February 2021.

(5) Facilities of R300m (2018: R300m) and R200m (2018: R200m) are revolving credit facilities of which R114m (2018: R524m)was drawn at 31 December 2019. R750m Revolver was settled during 2019.

(6) Forms part of the R6.885bn Megapool syndicated loan.

(7) On 27 February 2020 these facilities have been extended to 11 March 2021.

All loans are linked to JIBAR (“Johannesburg Interbank Agreed Rate”), except for the USD loan with ABSA which is linked toLIBOR (“London Interbank Offered Rate”).

The loan with Agense Francais Developpement is at a fixed rate.

These loans are secured by first mortgage bonds over a portion of the property portfolio to the value of R13 611m (2018:R14 118m), as listed below:

Agense Francaise Development (AFD)Atkinson House - JohannesburgPlatinum Place - Johannesburg

Megapool - R6.885bn1 Irvine Bell Drive - Empangeni10 Industrial Avenue - Kraaifontein102 Essenwood Road - Durban11 Wankel Street - Jet Park111 Mimets Road - Denver112 Yaldwyn Road - Jet Park12 Sookhai Place - Westville120 End Street - Doornfontein120 Loper Avenue - Aeroport121 Intersite Avenue - Springfield121 Malacca Road - Red Hill





141 Hertz Close - Meadowdale147/149 Old Main Road - Pinetown153 Old Main Road - Pinetown155/157 Old Main Road - Pinetown18 Covora Street - Jet Park2 Beechfield Crescent - Springfield Park2 Fobian Street - Boksburg2 Kuba Avenue - Riverhorse Valley21 Fricker Road - Illovo27 Jet Park Rd - Jet Park28 Goodwood Road - Mahogany Ridge3 The Terrace - Westway3 Wankel Street - Jet Park30/34 Hillclimb Road - Mahogany Ridge32 Yaldwyn Road - Jet Park33 Ontdekkers Road - Roodepoort33/37 Aloefield Crescent - Springfield Park35 Surprise Road - Pinetown37 Yaldwyn Road - Jet Park41 Yaldwyn Road - Jet Park5 Westgate Place - Westmead5 Yaldwyn Road - Jet Park50 Griffiths Mxenge Highway - Durban (75% ownership)51 Pritchard Street - Johannesburg6/8 Mahogany Road - Mahogany Ridge8 Director Drive - Aeroport85 Newton Street - Meadowdale88 Loper Avenue - AeroportAnchor Towers - Johannesburg OakdeneBeryl Street - Jet ParkBlue Heron Investments - DurbanBluff Shopping Centre - DurbanBridgeport - BraamfonteinCalderwood - BenoniCambridge Building - JohannesburgCambridge Crossing - SandtonCavendish House - JohannesburgCeltis Ridge Shopping Centre - CeltisdaleChapel Court - JohannesburgCity Main II - JohannesburgCorner Giel Basson Drive & Nathan Malach Street - GoodwoodCorner Gillits & Young Roads - PinetownCorner Isotope & Bridge Streets - BellvilleCorner Koornhof Road & Essex Street - MeadowdaleCorner Rudo Nel & Tudor Streets - Jet ParkCorner Staal & Stephenson Roads - PretoriaCoachmans Crossing - SandtonComaro Crossing - OakdeneCullinan Jewel Shopping Centre - CullinanDavenport Square Shopping Centre - GlenwoodDune Lark Investments - DurbanEast Point - BoksburgElmol House - Johannesburg




Erf 1144 Bardene Extention 48 - Boksburg

Erf 84/85/86 Shakas Head - Shakas HeadForest Road Design & Décor Centre - FourwaysFrank & Hirsch - JohannesburgGolf Park - PretoriaGreatermans - JohannesburgGreenpark Corner - SandtonGrey Heron Investments - DurbanHayfields Mall - PietermaritzburgIlanga House - JohannesburgImpilo Place - JohannesburgIndlovu Complex - MidrandJabulani Mews - SowetoKempton Park Shoprite Checkers - Kempton ParkKomati Complex - MidrandLegae - JohannesburgLethabong Complex - MidrandMaxwell Hall - JohannesburgMelbourne Court - JohannesburgMidway Mews - Halfway GardensMinuet - MidrandMontana Crossing - MontanaMoray House - JohannesburgMorning Glen Shopping Centre - SandtonMusgrave Centre - DurbanNewgate - NewtownNobel Street Office Park - BloemfonteinNormandi Court - JohannesburgNorthpark Mall - Pretoria NorthPine Walk Centre - PinetownQueens Court - JohannesburgSambro House - JohannesburgSpringbok Hotel - JohannesburgSpringfield Value Centre - SpringfieldTubatse Village- SteelpoortStellenbosch Square - Stellenbosch (50% ownership)Stuttaford House - JohannesburgSuffert Street - PinetownThe Eveready Building - Port ElizabethThe Oaks Shopping Centre - ErmeloTown Square Shopping Centre - WeltevredenparkTygerberg Business Park - ParowUmlazi Mega City - Umlazi (75% ownership)Whirlprops 25 Proprietary Limited - DurbanWillow Way Shopping Centre - Lynwood





2019 2018 Ratio Ratio


The Group is subject to, and is in compliance with, the following covenants:

CovenantsAgense Francaise DevelopmentTransactional loan to value <0.70 <0.70Debt Service cover ratio >1.10 >1.10Consolidated Loan to value <0.60 <0.60

Old Mutual Specialised Finance Proprietary LimitedInterest cover ratio >2.00Security portfolio loan to value <0.50Corporate loan to value <0.40Security tenancy level >0.90Vacancy level <0.10Hedging - total debt >0.70

Standard Bank of South Africa LimitedTransactional loan to value <0.45Transactional loan to value (including mark to market value) <0.50Transactional interest cover ratio >2.00Corporate loan to value (including guarantees) <0.45Corporate interest cover ratio >2.00

Syndicated loansTransactional loan to value <0.50Transactional interest cover ratio >2.00Corporate loan to value (including guarantees) <0.50Corporate interest cover ratio >2.00Loans to third parties to total investment portfolio (%) <2.50

Megapool loansTransactional loan to value - including all facilities <0.60 <0.60Transactional loan to value (including mark to market value) including all facilities <0.65 <0.65Transactional interest cover ratio >1.75 >1.75Corporate loan to value (including guarantees) <0.45 <0.45Corporate interest cover ratio >2.00 >2.00

Current ratiosCorporate loan to value (excl guarantees) 0.38 0.35Corporate loan to value (incl guarantees) 0.42 0.38Corporate interest cover ratio 2.6 2.8


2019 2018 R 000 R 000


The following table details changes in the Group's liabilities arising from financing activitiesincluding both cash and non- cash changes. Liabilities arising from financing activities arethose for which cash flows were or future cash flows will be classified in the Group' statementof cash flows as cash flows from financing activities.

Reconciliation of interest bearing borrowingsCarrying value at the beginning of the year 6 490 150 5 767 787Repayment of interest bearing borrowings (4 026 203) (267 376)Proceeds on interest bearing borrowings 4 499 000 936 186Non-cash changes - Foreign exchange adjustments (9 360) 53 553Carrying value at the end of the year 6 953 587 6 490 150

21. DEFERRED TAXATIONDeferred taxation is provided for using the liability method based on temporary differences.Temporary differences are differences between the carrying amounts of assets and liabilitiesfor financial reporting purposes and their taxation bases. Deferred taxation is charged toprofit or loss. A deferred taxation asset is recognised to the extent that it is probable thatit will be utilised on future taxable profits. Deferred taxation is raised at tax rates that havebeen enacted or substantively enacted at the reporting date.

Reconciliation of deferred taxationBalance at the beginning of year 199 (1 616)Prior year tax adjustment 6 025 -Charged to the statement of comprehensive income (1) (28) 1 815Balance at the end of year 6 196 199

Comprising:Prepayment (684) (5 800)Provision and accruals 366 1 583Assessed loss 6 491 4 388Straight line adjustment on rental expense 23 28

6 196 199


The Group qualified as a REIT with effect from 1 January 2014. In determining the aggregate capital gain or capital loss of aREIT or a controlled property company for purposes of the Eighth Schedule of the Income Tax Act of 1958 as amended anycapital gain or capital loss determined in respect of the disposal of immovable property or a share in a controlled propertycompany, must be disregarded.




2019 2018 R 000 R 000

22. TRADE AND OTHER PAYABLESRefer to note 6 for the accounting policy.

The Group has cash management policies in place to ensure that all amounts are paid withinthe required credit time frame.

Financial liabilities at amortised cost:Trade and other payables 303 254 363 523Tenant deposits 70 748 63 041Unclaimed distributions 1 120 1 062Accrued interest 65 695 35 202

440 817 462 828

23. REVENUERevenue comprises of gross rental income, including all recoveries from tenants. Rental incomeand fixed operating costs recoveries are recognised on the straight line basis in accordancewith IFRS 16: Leases. Turnover rental income is recognised on the accrual basis and measuredat fair value.

Interest income is recognised at the effective rates of interest on a time related basis. Dividendsare recognised when declared.

The directors have assessed the following:• The rental and recovery income fall outside the scope of IFRS 15, as this is within the scope

IFRS 16: Leases scope;• The interest and dividend income falls outside of the scope of IFRS 15, as this is included in the IFRS 9: Financial Instruments; and• The amounts that are included in other income, which falls within the scope of IFRS 15, are recognised when the performance obligations have been fulfilled. The performance obligations are distinct and stipulated in the agreement with the various parties. The amount

recognised as revenue is stipulated in or calculated based on the agreement.

Operating rent 1 656 649 1 676 721Turnover based rent 15 875 14 114Rent 1 672 524 1 690 835Straight line rental adjustment 15 630 21 472Recovery of property expenses 595 793 597 217Revenue 2 283 947 2 309 524

24. INTEREST INCOMEMoney markets investments and call accounts 55 587 75 099Tenant deposits (1) 5 362 4 627Cash and bank balances 2 132 1 001Late payment penalty interest 6 452 8 089Total 69 533 88 816

(1) Interest income earned on tenant deposits attributable to the Group. This was earned on the balance disclosed per note 16.



2019 2018Restated

R 000 R 000

25. INTEREST EXPENSERefer to note 6 for accounting policy.Borrowings 493 050 508 626Operational 7 957 338Lease liability 2 212 -Total 503 219 508 964

26. RESTATEMENTRe-presentation of change in interest expense on the statement of Profit or Loss andOther Comprehensive Income.In the prior year, interest expense was erroneously included in other operating expenses inthe statement of comprehensive income. In the restated comparatives, this line item wasseparately disclosed as interest expense in line with IAS 1 - Presentation of Financial Statements.

Re-classification of prepayments on the Statement of Financial PositionSimilarly, in the prior year, other financial assets included development prepayments of R155.1m(2017: R194.2m) in the statement of financial position. This is now disclosed separately in thestatement of financial position.

In previous years, development prepayments were disclosed separately in the note supportingother financial assets.

27. OTHER OPERATING EXPENSESAudit fees 4 923 4 138Administrative fees 55 201 65 389Depreciation on leasehold properties 5 933 -Depreciation on property, plant and equipment 6 467 6 201Property expenses 796 251 731 490Property administration fees 113 904 101 039Total 982 679 908 257

During the prior year, the interest expense was disclosed as part of the other operating expense. This is now separately disclosedon the face of the statement of comprehensive income together with the comparative amount and in note 25 and 26.

28. TAXATIONDue to the Group's REIT status, the taxation liability is limited to the extent that the distributable income as defined is notdistributed by the Group to its shareholders, as set out in the Income Tax Act of 1962 section 25BB. The Group's capital profitis also exempt from capital gains taxation. To the extent that the subsidiary companies comply with the definition, the aboveexemption will apply.




2019 2018 R 000 R 000

28. TAXATION (continued)

The income tax expense comprises the sum of current taxation payable and deferred taxation.Taxable profit differs from accounting profit as it excludes income or expenses that are taxableor deductible in other years and it excludes items never deductible or taxable.

South African normal taxationCurrent taxation- Current year (267) (136)

Deferred taxation (1)

- Current year (28) -- Prior year 6 025 1 815Total 5 730 1 679

Deferred taxation is not provided on the revaluation of properties. Refer to note 21.

(1) This amount includes a prior year tax adjustment relating to the employee share scheme.

2019 2018 % %

Taxation rate reconciliationStandard rate 28.0 28.0Distributions vested in beneficiary (108.5) (36.1)Foreign exchange adjustment on capital loan (1.9) 3.2Fair value loss on investment properties (exclusive of straight line adjustments) 63.8 3.0Fair value (loss)/gain on swap derivatives 9.6 (0.8)Fair value loss on investment property in joint ventures 6.1 0.8Fair value loss on investment in listed shares 1.3 1.4Other (1) (1.4) 0.3Prior year tax adjustments 0.7 -Effective rate (2.3) (0.2)

(1) Other non-taxable income includes profit and loss on disposal and unvested dividends fromlisted companies.

The subsidiary companies eligible for this exemption are only eligible to the extent that theyare deemed to be property companies in terms of section 25BB. All subsidiary companies notmeeting the requirements of this definition will raise a deferred tax asset to the extent thatit is likely that taxable income will arise against which to utilise this asset as detailed in note21.

Estimated taxation losses for which no deferred taxation asset was raised, due to the REIT taxstatus of the Group, probability of utilising the tax benefit is unlikely 44 933 44 366

2019 2019 2018 2018R 000 CPS R 000 CPS

29. EARNINGS AND DILUTED EARNINGS PERSHARE

Earnings 235 604 9.32 847 850 33.50Diluted earnings 235 604 9.32 847 850 33.50



29. EARNINGS AND DILUTED EARNINGS PER SHARE (continued)Calculated on the profit after tax and the weighted average number of shares in issue of 2 526 974 947 (2018: 2 530 689 337)and diluted weighted average number of shares in issue of 2 521 835 829 (2018: 2 525 398 686). As the diluted weightedearnings per share is anti-dilutive, the earnings per share is reflected as diluted earnings per share.

2019 2019 2018 2018R 000 CPS R 000 CPS

30. HEADLINE EARNINGS PER SHAREThe calculation of headline earnings per share is based onheadline earnings of R883 031 000 (2018: R947 026 000) ofthe Group and 2 530 601 900 (2018: 2 530 689 337) weightednumber of shares in issue during the year.

Reconciliation of profit after taxation to headlineearnings.Profit after taxation attributable to shareholders 235 603 9.32 847 850 33.50Adjustments for:Capital loss on disposal of investment properties 9 256 9 242 Non-controlling interest - fair value gain/(loss) on 17 325 (15 825)investment in propertiesFair value loss on investment properties 563 652 88 384 Fair value loss on investment property in joint ventures 53 529 17 375 Gain on acquisition of subsidiary (1 850) Headline earnings 877 515 34.73 947 026 37.42

2019 2018 R 000 R 000

31. DISTRIBUTIONRefer to note 32 for accounting policy.

Cents per shareNo. 7 declared on 4 September 2018 and paid on 8 October 2018 - 21.70No. 8 declared on 5 March 2019 and paid on 8 April 2019 - 20.52No. 9 declared 3 September 2019 and paid 7 October 2019 20.38 -No. 10 declared 10 March 2020 and to be paid 6 April 2020 17.66 -

38.04 42.22

Reconciliation between profit after tax and distributable earningsProfit after taxation 235 603 847 850Capital loss on disposal of investment properties 9 256 9 242Gain on bargain purchase (1 850) -Fair value loss on investment properties 563 652 88 384Fair value loss on investment properties in joint ventures 53 529 17 375Non-controlling interest fair value gain/(loss) on investment properties 17 325 (15 825)

Headline earnings 877 515 947 026Antecedent distribution 1 527 -Depreciation on property plant and equipment 6 468 6 201Dividend from investment in listed shares not yet declared (971) (2 092)Foreign exchange adjustments (15 686) 94 075IFRS 16 adoption (931) (494) Depreciation leasehold property 5 933 - Finance cost (9 076) - Lease payments 2 212 -




2019 2018 R 000 R 000

31. DISTRIBUTION (continued)

Non-distributable expenses 17 166 22 450Non-distributable expenses on investment in joint venture 129 7 417Non-distributable taxation (5 920) (1 815)Fair value gain/(loss) on swap derivatives 84 513 (24 874)Fair value loss on investment in listed shares 11 794 41 300Straight line rental adjustment (15 630) (21 472)Distributable income attributable to shareholders 959 974 1 068 216

32. DISTRIBUTIONS PAIDThe Group distributes all of its distributable income to the shareholders. Prior to the REITconversion the distributable income generated in the year was recognised as a liability.Effective from the date of the REIT conversion on 1 July 2015 the distributions payable wererecognised as liabilities in the period in which the distributions were declared.

33. CASH GENERATED FROM OPERATIONSProfit after taxation 252 928 830 017Adjustments for:Interest income (69 533) (88 816)Interest expense 503 219 508 964Provision for doubtful debt movement 23 486 29 210Amortisation of letting commissions and tenant installations 22 420 23 586Taxation (5 730) (1 679)Fair value loss on investment properties (excluding straight line adjustment) 548 021 66 912Fair value loss on investment in listed shares 11 794 41 300Profit from joint ventures (17 439) (38 818)Depreciation 12 401 6 201Fair value loss/(gain) on swap derivatives 84 513 (24 874)Capital loss on disposal of investment properties 9 256 9 242Share-based payment reserve 5 505 4 688Foreign exchange adjustments on foreign loan (9 360) 53 553Foreign exchange adjustment yield guarantee (872) (1 412)Foreign exchange adjustment on cross currency swap (6 953) 41 452Profit on acquisition of non-controlling interest (1 850) -Changes in working capital:Inventories (54) (122)Trade and other receivables 52 783 (125 452)Trade and other payables 29 734 166 848

1 444 269 1 500 800



20 Kyalami Road, Pinetown, KwaZulu Natal

2019 2018 R 000 R 000

34. CAPITALISATION OF INTERESTCapitalised interest is recognised in profit or loss using the effective interest method, unlessthe capitalised interest is directly attributable to the acquisition or development of qualifyingassets, in which case the directly attributable cost of borrowing is applied.

Interest capitalised during the development phases 84 452 59 267

Interest was capitalised at annual rates ranging from 8.9% to 9.3% (2018: 9.2% to 9.4%).

The capitalised interest is included in the investment property as detailed in note 7.

35. OPERATING LEASE ARRANGEMENTSThe minimum future lease payments receivable under non-cancellable operatingleases are as follows:Not later than 1 year 1 094 831 1 138 070Later than 1 year and not later than 5 years 1 756 456 2 183 211Later than 5 years 1 409 504 1 681 984

4 260 791 5 003 265

36. SEGMENTAL RESULTSInformation regularly reported to the executive directors for the purposes of resource allocation and assessment of its performanceis based on the economic sectors in which the investment properties operate. Each sector has an associated risk profile and ismanaged separately.

On a primary basis, the Group operated in the following reportable segments during the prior year.• Retail (1)

• Industrial• Commercial• AFHCO• Corporate

(1) Storage was classified as a separate sector in 2018. However since the units are situated predominately in retail centresand managed as an extension as the Group's retail assets this has been classified as retail in 2019.




Industrial Retail Commercial AFHCO Corporate ConsolidatedR 000 R 000 R 000 R 000 R 000 R 000

2019 Information on reportablesegments

Revenue 603 840 924 685 96 770 658 652 - 2 283 947

Rental income (excluding straight linerental adjustment) 482 835 561 041 77 726 550 922 - 1 672 524Net property expenses (57 392) (35 663) (22 979) (198 328) - (314 362) Property expenses (163 965) (388 781) (51 422) (305 987) - (910 155) Recovery of property expenses 106 573 353 118 28 443 107 659 - 595 793

Net property income 425 443 525 378 54 747 352 594 - 1 358 162

Straight line rental adjustment 14 432 10 526 (9 399) 71 - 15 630Dividends from investments in listed - - - - 13 879 13 879sharesProfit on acquisition of NCI - - - - 1 850 1 850Interest income - - - - 69 533 69 533Interest expense - - - - (503 219) (503 219)Profit from investment in joint - - - - 17 439 17 439venturesForeign exchange adjustments - - - - 17 185 17 185Group expenses - - - - (72 524) (72 524)Capital loss on disposal of - - - - (9 256) (9 256)investment propertiesFair value loss on investment properties (118 089) (353 096) (67 138) (25 329) - (563 652) Investment properties (103 657) (342 570) (76 537) (25 258) - (548 022) Straightline line adjustment (14 432) (10 526) 9 399 (71) - (15 630)Impairment of investment in - - - - (1 522) (1 522)unlisted sharesFair value loss on investment in - - - - (11 794) (11 794)sharesFair value loss on swap - - - - (84 513) (84 513)derivativesTaxation - - - - 5 730 5 730Profit after taxation 321 786 182 808 (21 790) 327 336 (557 212) 252 928

Other comprehensive income, net - - - - (25 730) (25 730)of taxation

Total comprehensive income 321 786 182 808 (21 790) 327 336 (582 942) 227 198

Profit after taxation attributable to Owners of the company 321 786 182 808 (21 790) 310 011 (557 212) 235 603 Non-controlling interest - - - 17 325 - 17 325

321 786 182 808 (21 790) 327 336 (557 212) 252 928

36. SEGMENTAL RESULTS (continued)




2018 Information on reportablesegments

Revenue 613 494 973 280 117 923 604 827 - 2 309 524

Rental income (excluding 514 705 583 241 91 653 501 236 - 1 690 835straight line rental adjustment)Net property expenses (46 804) (25 385) (18 435) (144 688) - (235 312)Property expenses (159 171) (379 438) (48 360) (245 650) - (832 529) Property administration fees (5 848) (24 449) (2 343) (68 399) - (101 039) Property expenses (153 323) (354 899) (46 017) (177 251) - (731 490)Recovery of property expenses 112 472 353 858 29 925 100 962 - 597 217

Net property income 467 901 557 856 73 218 356 548 - 1 455 523Straight line rental adjustment (13 578) 36 076 (3 655) 2 629 - 21 472Dividends from investments in - - - - 16 046 16 046listed sharesInterest income - - - - 88 816 88 816Interest expense - - - - (508 964) (508 964)Profit from investment in joint - - - - 38 818 38 818venturesForeign exchange adjustments - - - - (93 593) (93 593)Group expenses - - - - (75 728) (75 728)Capital loss on disposal of - - - - (9 242) (9 242)investment properties

Fair value loss on investment properties (19 778) (13 517) (49 870) (5 219) - (88 384) Investment properties (33 356) 22 559 (53 525) (2 590) - (66 912) Straight line rental adjustment 13 578 (36 076) 3 655 (2 629) - (21 472)Fair value loss on listed shares - - - - (41 300) (41 300)Fair value gain on swap - - - - 24 874 24 874derivativesTaxation - - - - 1 679 1 679Profit after taxation 434 545 580 415 19 693 353 958 (558 594) 830 017Other comprehensive income, net - - - - 139 098 139 098of taxation

Total comprehensive income 434 545 580 415 19 693 353 958 (419 496) 969 115

Profit after taxation attributable to Owners of the company 434 545 580 415 19 693 371 791 (558 594) 847 850 Non-controlling interest - - - (17 833) - (17 833)

434 545 580 415 19 693 353 958 (558 594) 830 017






2019Properties (excluding straight 4 465 000 7 553 500 556 325 4 798 007 - 17 372 832line rental adjustments)Non-current investment property 4 152 382 7 370 814 503 785 4 761 675 - 16 788 656 At valuation 4 221 500 4 590 700 512 500 4 201 122 - 13 525 822 Straight line rental adjustment (69 118) (179 986) (8 715) (21 847) - (279 666) Under development - 2 960 100 - 582 400 - 3 542 500Non-current investment property held 230 972 2 700 43 612 14 289 - 291 573for sale Classified as held for disposal 243 500 2 700 43 825 14 485 - 304 510

Straight line rental adjustment (12 528) - (213) (196) - (12 937)

Other assets 175 206 410 491 45 686 930 747 1 151 949 2 714 079

Total assets 4 558 560 7 784 005 593 083 5 706 711 1 151 949 19 794 308Total liabilities 75 776 185 627 22 902 213 722 7 304 592 7 802 619

Acquisitions and improvements 35 782 432 220 2 662 390 309 - 860 973



2018Properties (excluding straightline rental adjustments) 4 738 222 7 463 850 903 800 4 695 128 - 17 801 000Non-current investment property 4 576 229 7 291 690 858 436 4 583 385 - 17 309 740 At valuation 4 100 580 7 281 150 803 700 4 095 063 - 16 280 493 Straight line rental adjustment (66 321) (169 460) (18 264) (21 543) - (275 588) Under development 541 970 180 000 73 000 509 865 - 1 304 835Non-current investment property held 94 778 2 700 27 037 89 771 - 214 286 for sale Classified as held for disposal 95 672 2 700 27 100 90 200 - 215 672

Straight line rental adjustment (894) - (63) (429) - (1 386)

Other assets 140 162 390 818 48 924 279 633 2 012 444 2 871 981

Total assets 4 811 169 7 685 208 934 397 4 952 789 2 012 444 20 396 007Total liabilities 57 366 147 149 18 211 773 600 6 538 381 7 534 707

Acquisitions and improvements 362 663 305 123 56 225 988 761 - 1 712 772

Revenue reported above represents revenue, from external tenants, generated in South Africa. The Group does not place significantreliance on any single tenant. No single tenant contributed 10% or more to the Group's revenue for either 2018 or 2019.



Bluff Shopping Centre Durban, Tara Road, KwaZulu Natal

2019 2018 R 000 R 000

37. CAPITAL COMMITMENTSCommitments for the acquisition and development of investment property.

Total capital commitments (1) 346 714 922 752

(1) This value includes committed acquisitions of R238.9m which has been prepaid.

The Group has the ability to fund the commitments from its available cash, debt facilities as detailed in note 20 and disposalpipeline.

38. RELATED PARTIESRelated party transactions constitute the transfer of resources, services or obligations between the Group and a party relatedto the Group, regardless of whether a price is charged.

For the purposes of defining related party transactions with key management, key management has been defined as Directorsand the Group's executive committee and includes close members of their families and entities controlled or jointly controlledby these individuals.

2019 2018 R 000 R 000

Related party balancesHizo Cape Proprietary Limited (Co-owner of subsidiary) (1)

Loan from non-controlling shareholder - (252 165)JR 209 Investments Pty Ltd (Co-owner of subsidiary)Loans to developer - 214 034

Related party transactionsHizo Cape Proprietary Limited (Co-owner of subsidiary) (1)

Interest expense - (18 541)JR 209 Investments Pty Ltd (Co-owner of subsidiary)Interest income 8 497 36 200

The related party transactions and balances are at arm's length. The directors are deemed to be key management. Refer tonote 40 for the directors' emoluments for compensation paid to key management personnel by the Group and notes 19 and12 for the terms and conditions for the loan from non-controlling shareholder and loans to developer respectively.

(1) This entity ceased to be a related party on 1 January 2019 as detailed in note 19.




39. SHARE BASED PAYMENTSOne of the Group's subsidiary companies issues shares to selected employees as part of its forfeitable share plan and/or co-investment share plan. The forfeitable share plan vests in three years after grant date and is subject to the Group's and theindividual employee's performance. The co-investment plan vests in three to five years. Both plans are subject to the employee'sremaining in employment for the duration of the vesting period.

These plans are recognised and measured as an equity-settled plan at a Group level.

Equity-settled payments to employees are measured at the fair value of the equity instruments at the grant date. The fair valuedetermined on grant date is expensed over the vesting period. The number of the vested shares is revised at each reportingdate. All required adjustments are recognised in profit of loss.

The terms of the plans as approved by the shareholders at the annual general meeting are:

Forfeitable share plan (“FSP”)

Executives and senior employees are offered shares in the Group at no cost to the employee. These shares vest based on thefollowing vesting conditions:• remaining in the employment of the Group for a duration of a three year period from the date of the award;• distribution growth relative to the SAPY index over three years (financial);• share price growth relative to the SAPY index over three years (financial); and• average personal score over three years (non-financial).

The fair value of the share plan is determined by reference to the fair value of the equity instruments.

Co-investment plan (“CIPS”)

Executives are offered matched shares based on the direct or indirect shares held by the executive in the Group at no cost tothe recipient. These shares vest in equal proportion over a period of three to five years provided that the executive remains inthe employment of the Group for the duration of the period and does not dispose of the shares upon which the matched shareis based. No performance vesting conditions are set.

The weighted average remaining contractual life of the CIPS and FSP are 2.7 and 1.8 years respectively. The shares issued forthe forfeitable share plan and co-investment plan carry the right to participate in the distributions. The number of shares grantedis calculated in accordance with the performance-based formula approved by the remuneration committee.

The valuation of the CIPS and FSP is calculated based on the following:• the probability that the shares are likely to vest based on the above conditions; and• the market price of the share on grant date.

The fair value of the CIPS and FSP granted was valued using a binomial pricing model. The expected vesting period used inthe model has been adjusted based on managements' best estimate for the effects of exercise restrictions and behaviouralconsiderations.

Further details relating to the share incentive schemes are available on the website www.sacorpfund.co.za.



39. SHARE BASED PAYMENTS (continued)

The valuation was determined based on the following inputs at grant date:

VestingExpected Dividend period

Type vesting % yield % (years)

FSP 4 60 % 7.64 % 3FSP 5 60 % 8.11 % 3FSP 6 60 % 9.38 % 3CIPS 7 100 % N/A 3 - 5CIPS 9 100 % N/A 3 - 5CIPS 10 100 % N/A 3 - 5

The following payment arrangements were in existence during the current year:

Exercise Fair value atGrant Expiry price grant date

Type Number date date R R

FSP 4 1 402 226 15 June 2017 14 June 2020 - 5.56FSP 5 2 080 825 18 June 2018 17 June 2021 - 4.54FSP 6 3 411 359 13 December 2019 17 June 2022 - 2.97CIPS 7 25 759 20 June 2017 20 June 2020 - 5.60CIPS 7 25 759 20 June 2017 20 June 2021 - 5.60CIPS 7 25 759 20 June 2017 20 June 2022 - 5.60CIPS 9 18 506 28 June 2018 28 June 2021 - 4.32CIPS 9 18 506 28 June 2018 28 June 2022 - 4.32CIPS 9 18 506 28 June 2018 28 June 2023 - 4.32CIPS 10 29 157 13 December 2019 12 December 2022 - 3.11CIPS 10 29 157 13 December 2019 12 December 2023 - 3.11CIPS 10 29 157 13 December 2019 12 December 2024 - 3.11

7 114 676

FSP CIPSMovements in shares during the year 2019 shares shares

Balance at beginning of year 4 813 364 296 471Granted during the year 3 411 359 87 470Forfeited during the year (555 840) -Vested during the year (774 472) (163 677)Balance at end of year 6 894 411 220 264

Movement in shares during the year 2018

Balance at beginning of year 4 492 187 404 630Granted during the year 2 080 826 55 518Forfeited during the year (885 536) -Vested during the year (874 113) (163 677)Balance at end of year 4 813 364 296 471




Valuation price Year-end valuation basedper share Fair value on time elapsed

Plan Shares R R 000 R 000

Revaluation of shares 2019

FSP 6 894 411 3.89 26 827 7 772CIPS 220 264 4.29 945 440

7 114 675 27 772 8 212

Revaluation of shares 2018

FSP 4 813 364 4.70 22 640 6 515CIPS 296 471 4.87 1 444 825

5 109 835 24 084 7 340

39. SHARE BASED PAYMENTS (continued)

40. DIRECTORS' REMUNERATIONShort-term benefits paid to directors:

Pension HealthDirector fees Basic salary Bonus contribution benefits Total

R 000 R 000 R 000 R 000 R 000 R 000

2019Non-executive Directors:RJ Biesman-Simons 807 - - - - 807A Chowan (2) 281 - - - - 281GP Dingaan (2) 178 - - - - 178U Fikelepi (2) 235 - - - - 235N Ford-Hoon (Fok) (3) 330 - - - - 330EM Hendricks 639 - - - - 639GJ Heron (3) 313 - - - - 313J Molobela (2) 389 - - - - 389MA Moloto 881 - - - - 881OR Mosetlhi (3) 281 - - - - 281ES Seedat 729 - - - - 729A van Heerden (3) 315 - - - - 315

Executive Directors: TR Mackey (CEO) - 2 565 1 633 380 - 4 578AM Basson (CFO) - 1 963 1 019 282 5 3 269

5 378 4 528 2 652 662 5 13 225



East Point, Cnr Northrand & Rietfontein Roads, Jansen Park, Boksburg, Gauteng

40. DIRECTORS' REMUNERATION (continued)

Short-term benefits paid to directors:

Pension HealthDirector fees Basic salary Bonus contribution benefits Total

R 000 R 000 R 000 R 000 R 000 R 000

2018Non-executive Directors:RJ Biesman-Simons 666 - - - - 666A Chowan (2) 379 - - - - 379GP Dingaan (2) 400 - - - - 400U Fikelepi (2) 107 - - - - 107KJ Forbes (1) 229 - - - - 229EM Hendricks 378 - - - - 378J Molobela (2) 486 - - - - 486MA Moloto 520 - - - - 520ES Seedat 473 - - - - 473

Executive Directors: TR Mackey (CEO) - 2 293 1 672 363 - 4 328AM Basson (CFO) - 1 756 1 133 278 5 3 172

3 638 4 049 2 805 641 5 11 138

(1) Mr Ken Forbes retired on 29 May 2018.

(2) Retired/Resigned during the year.

(3) Appointed during the year.



Share-based payments to directors:

2019 2018Award Share options: Number of shares Number of shares

AM Basson Forfeitable Shares Opening number of shares 1 385 828 1 282 100New number of share awards (1&2) 814 479 542 153Vested shares (2) (262 409) (308 625)Forfeited shares (2) (173 656) (129 800)Closing number of shares 1 764 242 1 385 828


40. DIRECTORS' REMUNERATION (continued)

Share-based payments to directors:

2019 2018Award Share options: Number of shares Number of shares

AM Basson Co-investment Shares Opening number of shares 132 794 77 276New number of share awards (1&4) 87 470 55 518Closing number of shares 220 264 132 794

TR Mackey Forfeitable Shares Opening number of shares 2 413 648 2 248 108New number of share awards (1&2) 1 418 549 944 248Vested shares (2) (430 806) (541 164)Forfeited shares (2) (328 674) (237 544)Closing number of shares 3 072 717 2 413 648

TR Mackey Co-investment Shares Opening number of shares 163 677 327 354Shares vested (3) (163 677) (163 677)Closing number of shares - 163 677

Total share expense R 000 R 000 AM Basson Forfeitable Shares 1 366 1 522TR Mackey Forfeitable Shares 2 379 2 633AM Basson Co-investment Shares 178 145TR Mackey Co-investment Shares 101 342

4 024 4 642

(1) Strike price is Rnil.

(2) Forfeitable share options:• The 2015 share issuance was granted on 19 June 2015 and has vested on 18 June 2018.• The 2016 share issuance was granted on 17 June 2016 and has vested on 9 December 2019.• The 2017 share issuance was granted on 15 June 2017 and will vest on 14 June 2020.• The 2018 share issuance was granted on 18 June 2018 and will vest on 17 June 2021.• The 2019 share issuance was granted on 13 December 2019 and will vest on 17 June 2021.

These shares are subject to vesting conditions.

(3) Co-investment share options:• The 2014 share issuance was granted on 22 December 2014 and one-third each has vested on 22 December 2017, 22 December 2018 and 22 December 2019.

(4) Co-investment share options::• The 2017 share issuance was granted on 20 June 2017 and one-third each will vest on 20 June 2020, 20 June 2021 and 20 June 2022.• The 2018 share issuance was granted on 28 June 2018 and one-third each will vest on 28 June 2021, 28 June 2022 and 28 June 2023.• The 2019 share issuance was granted on 13 December 2019 and one-third each will vest on 12 December 2022,

12 December 2023 and 12 December 2024.


41. CONTINGENT LIABILITIESA financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder fora loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.


41. CONTINGENT LIABILITIES (continued)

Where guarantees in relation to loans to related parties are provided for no compensation the fair values are accounted for ascapital contributions and recognised as part of the cost of the investment.

The Group will make payments to reimburse the lenders upon failure of the guaranteed entity to make payments when due.

Below is a list of guarantees issued by the Group: 2019 2018 R 000 R 000

Guaranteed entityOne Triple L Projects Proprietary Limited (1&2) - 115 532JR 209 Investments Proprietary Limited (2) 130 000 130 000Menlyn East End Developments (MEED) (2) 143 100 143 100Graduare Mauritius Limited (3) 265 536 272 111

538 636 660 743

(1) The guarantee was called during 2019.

(2) The guarantee is secured by the underlying property.

(3) The guarantee relates to the co-owner's allocation of the underlying debt and is secured by the 50% shareholding in thejoint venture held by the co-owner.

The Group provides guarantees to its development partners. These contingent liabilities are supportive of the Group's strategyto acquire investment properties.

42. GOING CONCERNThe financial statements have been prepared on the going concern basis for 12 months from the date of this report.

• At 31 December 2019 the Statement of Financial Position reflects that the Group's current liabilities exceeds its current assets by R379m, however there were undrawn facilities of R386m at 31 December 2019. R878m of debt facilities maturing in November and December 2020 has since been extended to March 2021.

• The reduction in operating profit arising from negative rental reversions, negative operating cash flows, increases in vacancies and arrears is reflective of the current economic climate and the distribution pay-out ratio. This is also as a result of property disposals with the proceeds being reinvested into residential and retail developments. A review

of the future operating cashflows has given the Board comfort that sufficient cash is being generated for the Group to meet its obligations and distributions to its shareholders. It is the intention to utilise a portion of divestment proceeds to settle debt, thereby reducing the LTV during 2020.

43. EVENTS AFTER THE REPORTING PERIODDistributionsThe Group declared a distribution of 17.66 cents on 10 March 2020.

The Directors are not aware of other significant events between the end of the financial year under review and the date ofsignature of these financial statements.

44. REPORTABLE IRREGULARITYDuring 2019, the Group's auditors, Deloitte & Touche, reported a reportable irregularity (“RI”) to the Independent RegulatoryBoard for Auditors (“IRBA”) in relation to a director's dealings in the Company's shares. The Company has responded to thisRI and the auditors have now informed the IRBA that the RI did occur but is no longer continuing. The RI does not affect thefair presentation of the financial statements.




There have been no changes in the direct or indirect beneficial interest of the directors between the end of the financial year under reviewand the date of signature of these financial statements.

SHAREHOLDER INFORMATION: Number of % of total

Shareholder Type shareholdings shareholdings Shares held % Holding

Non-Public Shareholders 10 0.19% 733 468 478 29.17%Directors and Associates of the Company Direct holding 5 0.09% 3 096 095 0.12% Indirect holding 2 0.04% 1 641 253 0.07%Share Schemes SA Corporate Real Estate Fund Managers Proprietary Limited 1 0.02% 7 114 675 0.28%Beneficial Shareholders holding more than 10% Government Employees Pension Fund 1 0.02% 456 936 441 18.17% Allan Gray 1 0.02% 264 680 014 10.53%

Public Shareholders 5 309 99.81% 1 781 263 617 70.83%

Total 5 319 100.00% 2 514 732 095 100.00%

Investment Manager Shareholders (>3%) Shares Held % Holding Public Investment Corporation 486 889 368 19.36% Prudential Investment Managers 385 783 426 15.34% Allan Gray 353 966 560 14.08% Old Mutual Investment Group 170 113 912 6.76% Catalyst Fund Managers 102 902 729 4.09% Vanguard Investment Management 100 043 167 3.98% Investec Asset Management 97 493 498 3.88% Momentum Investments 86 279 535 3.43%Total 1 783 472 195 70.92%

Beneficial Shareholders (>3%) Shares Held % Holding Government Employees Pension Fund 456 936 441 18.17% Allan Gray 264 680 014 10.53% Old Mutual Investment Group 243 617 594 9.69% Prudential Investment Managers 201 532 051 8.01% Momentum Investments 104 324 877 4.15% Vanguard Investment Management 99 960 705 3.98% Alexander Forbes Investments 78 149 217 3.11%Total 1 449 200 899 57.64%

DIRECTORATE:The table below sets out the directors' holdings in shares:

2019 2018Director Share Type of Holding Share Type of Holding

holding holding000 000

J Molobela 1 - Direct beneficial 76 Direct beneficialRJ Biesman-Simons 100 Indirect beneficial 100 Indirect beneficialAM Basson 824 Direct beneficial 562 Direct beneficialAM Basson 1 985 Indirect beneficial (CIPS2 & FSP3) 1 519 Direct beneficial (CIPS2 & FSP3)TR Mackey 3 073 Indirect beneficial (FSP3) 2 577 Indirect beneficial (CIPS2 & FSP3)TR Mackey 2 087 Direct beneficial 1 493 Direct beneficialTR Mackey 1 541 Indirect beneficial 1 541 Indirect beneficialMA Moloto 24 Direct beneficial 24 Direct beneficialES Seedat 85 Direct beneficial 72 Direct beneficial

9 719 7 964

1 The late Adv J Molobela passed away on 27 June 20192 CIPS = Co-investment Plan3 FSP = Forfeitable Share Plan

APPENDIX A: STATUTORY INFORMATION


Sectoral and geographical profile:The regional and sectoral composition of the property portfolio is depicted in the following tables:

Geographical profileGauteng KwaZulu Natal Western Cape Other Total

Rental Area (m2) 1 010 139 360 841 39 874 85 351 1 496 205Revenue (R 000) 1 495 448 676 863 64 111 47 525 2 283 947

Specialised:Industrial Retail Commercial AFHCO Total

Rental Area (m2) 647 814 383 778 38 858 425 755 1 496 205Revenue (R 000) 603 840 924 685 96 770 658 652 2 283 947

The rental area excludes 131 031 m2 development bulk.8 Properties disposed of in the current year

Tenant profile:"The tenants are classified in terms of the following grading:“A”: large national tenants, large listed tenants, government and major franchisees; "Large national tenants" is defined as tenants occupying premises that have on average greater than 500m2 of GLA.“B”: national tenants, listed tenants, franchisees, medium to large professional firms; and "National tenants" is defined as tenants occupying premises that have on average greater than 1 000m2 of GLA in one region. "Medium professional firms" is defined as professional firms occupying premises that have on average between 500m2 and

2 000m2 of GLA. "Large professional firms" is defined as professional firms occupying premises that have on average greater than 2 000m2 of

GLA.“C”: Other"

% of occupied space

Tenant profile 2019 2018

A 53.1 58.2B 27.7 26.7C 19.2 15.1

100.0 100.0

Vacancies, expiries and average rental income:The lease expiry profile and vacancies (as a % of Gross Lettable Area) are set out below:

Traditional Portfolio:

Property Vacancy (%) Expiries (%) type 2018 2019 Monthly 2020 2021 2022 2023 Thereafter

Industrial 0.6 3.2 8.3 17.5 25.6 12.6 15.1 17.7 Retail 4.1 4.4 8.8 19.1 18.2 16.9 6.3 26.3 Commercial 6.2 16.0 3.9 18.1 39.4 12.5 4.5 5.6 Total 2.1 4.2 8.2 18.1 23.9 14.0 11.7 19.9

APPENDIX B: PROPERTY PORTFOLIO REVIEW



AFHCO Portfolio:


Retail / Commercial 4.8 4.1 7.4 26.6 18.3 10.1 8.2 25.3 Residential (by units) 13.4 8.2 45.7 46.1 - - - -

APPENDIX B: PROPERTY PORTFOLIO REVIEW CONTINUED

The lease expiry profile and vacancies (as a % of rental income) are set out below:

Traditional Portfolio:


Industrial 0.4 2.5 8.4 17.4 34.1 13.6 18.6 5.4Retail 4.2 4.0 7.9 24.2 19.8 18.7 5.8 19.6Commercial 5.5 13.8 3.6 18.0 41.1 12.7 5.4 5.4Total 2.9 4.1 7.8 21.2 26.8 16.3 10.7 13.1

AFHCO Portfolio:


Retail / Commercial 3.3 3.0 7.4 28.6 18.3 10.1 8.2 24.4Residential 16.4 8.4 42.9 48.7 0.0 - - -

Rest of Africa Portfolio


Retail 1.8 4.3 - 13.9 13.0 12.3 53.0 3.5Commercial 1.0 11.9 - 19.2 26.0 - 42.9 -Total 1.6 4.9 14.3 14.1 11.3 52.2 3.2

Weighted average rental per square metre by GLA calculated on the total of rent, operating cost and rates:

2019 2018

Property type R/m2 R/m2

Industrial 62.95 64.55Retail 159.10 159.17Office 110.15 118.92Storage 78.95 78.95AFHCO Retail/Commercial 148.10 137.20AFHCO Residential 124.70 107.26Total 105.26 102.47

Weighted average rental escalation profile:

2019 2018

Property type % %

Industrial 7.44 7.85Retail 7.45 7.58Commercial 7.78 7.98AFHCO Retail/Commercial 8.54 8.93AFHCO Residential 3.94 4.00Total 6.69 7.03

The annualised property yield is 7.5% (2018: 8.4%)


Rest of Africa Portfolio


Retail 2.7 4.6 - 15.7 14.4 15.2 3.1 47.0Commercial 1.1 4.5 - 6.5 9.7 - 65.3 14.0Total 2.3 4.6 - 13.7 13.4 12.1 16.1 40.1

#

Stellenbosch Square (c) (f) Cnr R44 & Webersvallei Road Stellenbosch 34 753 5 477 146 107 500

Retail - Western Cape

APPENDIX C: PROPERTY PORTFOLIO

50 Griffiths Mxenge Highway (c) (e) 50 Griffiths Mxenge Highway, Umlazi Umlazi 270 511 3 237 129 40 950Bluff Shopping Centre (c) Cnr Grays Inn & Tara Roads Bluff 48 637 24 551 164 463 000Davenport Square Shopping Centre (c) Cnr Clark & Brand Roads Glenwood 8 223 8 006 232 204 100Hayfields Mall (c) Cnr Blackburrow Road & Cleland Roads, Hayfields Pietermaritzburg 34 683 12 022 213 281 000Musgrave Centre (c) 115 Musgrave Road Musgrave 25 892 39 470 230 1 064 000Pine Walk Centre (c) 22 Kings Road Pinetown 13 889 8 513 164 147 300Springfield Value Centre (c) Cnr Umgeni & Electron Roads Springfield 52 020 19 979 204 524 700Umlazi Mega City (c) (e) 50 Griffiths Mxenge Highway Umlazi 270 511 36 704 167 703 500

Retail - Kwazulu Natal

Retail - Gauteng

Cambridge Crossing (c) Cnr Witkoppen Road & Stone Haven Street, Paulshof Sandton 12 478 5 215 196 144 000Celtis Ridge Shopping Centre, Centurion (c) Cnr Main Arterial Ruimte Road & Seedcracker Road, Celtisdale 21 231 7 223 162 137 300

HeuwilsigCoachman’s Crossing (c) Cnr Peter Place & Karen Street, Bryanston West Sandton 15 860 6 309 200 106 500Comaro Crossing (c) Cnr Comaro Street & Boundary Lane Oakdene 24 067 14 665 151 287 000Cullinan Jewell Shopping Centre (c) (g) Cnr Main Road & Oak Avenue Cullinan 10 753 3 741 132 50 600East Point Shopping Centre (c) Cnr Northrand & Rietfontein Roads, Jansen Park Boksburg 80 202 42 994 150 1 122 000Forest Road Design & Décor Centre (c) Cnr Forest Drive & Sunset Avenue, Pineslopes Fourways 21 933 11 460 200 129 500Kempton Shoprite Checkers (c) Cnr Langenhoven Avenue & Voortrekker Road Kempton Park 49 124 10 659 83 101 100Midway Mews (c) Cnr Harry Galaun Drive & Seventh Street Halfway Gardens 28 198 8 740 157 177 300Montana Crossing (c) Cnr Zambesi Drive & Dr Swanepoel Road Montana 69 733 23 225 123 346 400Northpark Mall (c) 526 Rachel De Beer Street Pretoria North 20 415 14 219 91 206 000Town Square Shopping Centre (c) Cnr Hendrik Potgieter Road & Albert Street Waltevredenpark 25 057 5 655 203 156 500Willow Way Shopping Centre (c) Cnr Lynwood Road & Power Avenue Lynwood 26 482 7 933 138 133 400Morning Glen Shopping Centre (c) Kelvin Dr & Bowling Avenue Sandton 21 918 16 475 155 310 00051 Pritchard Street (c) 51 Pritchard Street Johannesburg 4 974 - - 260 000African City (a) Eloff Street Johannesburg 10 605 5 426 235 117 000The Oaks Shopping Centre (c) Kerk Street Ermelo 21 270 8 588 127 120 000

Property address Location Site area (m2)Rentable

area (m2)

Weightedaverage rental

per m2 (R)ValueR 000Property company/name Key

11 Enterprise Close Linbro Business Park Linbro Business Park 4 414 1 913 - 9 35011 Wankel Street (c) 11 Wankel Street Jet Park 16 905 6 729 - 36 600111 Mimets Road (c) 111 Mimets Road Denver 33 881 18 051 - 111 000112 Yaldwyn Road (c) 112 Yaldwyn Road Jet Park 58 675 30 299 - 215 000120 Loper Avenue (c) 120 Loper Avenue Aeroport Industrial Estate 10 111 3 575 - 21 400137 Kuschke Street 137 Kuschke Street Meadowdale 2 820 1 541 - 12 150141 Hertz Close (c) 141 Hertz Close Meadowdale 6 694 3 616 - 25 400144 Kuschke Street 144 Kuschke Street Meadowdale 2 536 1 488 - 9 250145 Kuschke Street 145 Kuschke Street Meadowdale 2 262 1 518 - 10 400148 Fleming Street 148 Fleming Street Meadowdale 2 652 1 417 - 9 950149 Fleming Street 149 Fleming Street Meadowdale 3 382 2 090 - 13 25015 Patrick Road 15 Patrick Road Jet Park 8 140 2 275 - 18 100150 Fleming Street 150 Fleming Street Meadowdale 3 180 1 835 - 12 20016 Friesland Crescent (UPM Raflatac), 16 Friesland Street Rembrandt Park 4 304 1 622 - 11 600Longmeadow18 Covora Street (c) 18 Covora Street Jet Park 10 498 4 638 - 31 40019 Brunton Circle (Webco Tools), 19 Brunton Circle, Founders View South Modderfontein 4 151 2 720 - 13 300Founders View2 Fobian Street (c) 2 Fobian Street Boksburg 12 047 5 258 - 28 8002 Webb Road 2 Webb Road Jet Park 6 009 1 859 - 13 15027 Jet Park Road (c) 27 Jet Park Road Jet Park 55 256 12 582 - 80 5003 Wankel Street (c) 3 Wankel Street Jet Park 7 391 3 952 - 27 40032 / 34 Yaldwyn Road (c) 32 / 34 Yaldwyn Road Jet Park 7 792 4 000 - 24 40033 Ontdekkers Road (c) 33 Ontdekkers Road Roodepoort 14 805 6 386 - 92 000

Industrial - Gauteng



APPENDIX C: PROPERTY PORTFOLIO CONTINUED

37 Yaldwyn Road (c) 37 Yaldwyn Road Jet Park 78 610 39 738 - 297 00041 Yaldwyn Road (c) 41 Yaldwyn Road Jet Park 12 654 6 249 - 63 0005 Yaldwyn Road (c) 5 Yaldwyn Road Jet Park 41 194 17 552 - 120 000530 Nicholson Road (g) 530 Nicholson Road Denver 31 009 24 880 - 40 00057 Sarel Baard Crescent 57 Sarel Baard Crescent Centurion 80 999 42 144 - 576 0007 Belgrade Avenue 7 Belgrade Avenue Aeroport Industrial Estate 3 525 1 535 - 9 0008 Director Drive (c) 8 Director Drive Aeroport Industrial Estate 6 947 3 750 - 22 80085 Newton Street (c) 85 Newton Street Meadowdale 5 600 3 178 - 25 10088 Loper Avenue (c) 88 Loper Avenue Aeroport Industrial Estate 10 953 7 432 - 50 00096 - 15th Road (g) 96, 15th Road, Randjespark Midrand 44 682 10 443 - 77 500Beryl Street (c) Beryl Street Jet Park 130 418 27 681 - 334 000Cnr Bismuth & Graniet Streets Cnr Bismuth & Graniet Streets Jet Park 4 005 1 800 - 9 500Cnr Fleming St & Koornhof Road Cnr Fleming St & Koornhof Road Meadowdale 5 471 2 914 - 19 000Cnr Koornhof Rd & Essex Street (c) Cnr Koornhof Rd & Essex Street Meadowdale 20 929 9 783 - 65 000Cnr Rudo Nel & Tudor Streets (c) Cnr Rudo Nel & Tudor Streets Jet Park 22 627 10 786 - 59 000Cnr Staal & Stephenson Road (c) Cnr Staal & Stephenson Road Pretoria 43 957 28 538 - 87 000Stondell Investments Proprietary Limited (g) 684 Pretoria Main Road, Wynberg Wynberg 3 718 2 551 - 4 000Erf 1144 Bardene Ext 48, Bardene (c) 39 Viewpoint Road, Bartlett Boksburg 10 204 1 045 - 15 800


area (m2)


per m2 (R)ValueR 000

Industrial - Gauteng (continued)

Property company/name Key

1 Baltex Road 1 Baltex Road Isipingo 53 080 9 964 - 127 50010 Yarborough Road 10 Yarborough Road Pietermaritzburg 38 712 3 400 - 42 3001 Irvine Bell Drive (c) 1 Irvine Bell Drive Empangeni 12 788 2 736 - 15 700121 Intersite Avenue (a) (c) 121 Intersite Avenue Durban 7 579 2 734 - 28 000121 Malacca Road (c) 121 Malacca Road Red Hill 7 565 3 751 - 22 500147 / 149 Old Main Road (c) 147 / 149 Old Main Road Pinetown 12 950 6 186 - 75 200153 Old Main Road (c) 153 Old Main Road Pinetown 9 044 3 408 - 36 000155 / 157 Old Main Road (c) 155 / 157 Old Main Road Pinetown 14 576 5 858 - 58 80017 Young Road 17 Young Road Pinetown 8 942 3 970 - 18 2002 Beechfield Crescent (c) 2 Beechfield Crescent, Springfield Park Durban 4 636 3 815 - 23 00020 Kyalami Road 20 Kyalami Road Pinetown 6 614 3 052 - 19 400264 Aberdare Drive 264 Aberdare Drive Phoenix 10 000 3 648 - 19 10028 Goodwood Road (c) 28 Goodwood Road Mahogany Ridge 21 409 7 848 - 51 0002A, B & C Kuba Avenue (c) 2A, B & C Kuba Avenue Riverhorse Valley 9 979 4 463 - 42 40030 / 34 Hillclimb Road (c) 30 / 34 Hillclimb Road Mahogany Ridge 15 966 10 132 - 42 10033 / 37 Aloefield Crescent (c) 33 / 37 Aloefield Crescent Springfield Park 6 804 5 672 - 33 40035 Surprise Road (c) 33 Surprise Road Pinetown 15 894 5 869 - 31 7005 Westgate Place (c) 5 Westgate Place Westmead 27 828 4 633 - 58 0006 / 8 Mahogany Road (c) 6 / 8 Mahogany Road Mahogany Ridge 15 173 7 324 - 61 0009 Twilight Road 9 Twilight Road Umhlanga 2 106 823 - 17 600Blue Heron Investments Proprietary (a) (c) Cnr Shadwell & Jenkyn Roads, Maydon Wharf Durban 15 703 14 587 - 64 000LimitedCnr Gillitts & Young Roads (c) Cnr Gillitts & Young Roads Pinetown 12 354 4 616 - 32 500Dune Lark Investments Proprietary Limited (a) (c) 34 Shadwell Road, Maydon Wharf Durban 16 779 13 091 - 47 000Erf 84 / 85 / 86 Shakas Head Proprietary (c) 15 Coconut Grove Shakashead 24 537 10 705 - 50 800LimitedGrey Heron Investments Proprietary (a) (c) 137 Johnston Road, Maydon Wharf Durban 7 894 7 394 - 30 000LimitedRock Kestrel Investments Proprietary (a) Shadwell Road, Maydon Wharf Durban 14 480 398 - 7 800LimitedSuffert Street (c) Suffert Street Pinetown 33 653 14 056 - 79 000Whirlprops 25 P Proprietary Limited (a) (c) 59 Intersite Avenue, Umgeni Business Park Durban 21 753 16 703 - 92 000Wood Ibis Investments Proprietary Limited (a) Methven Road, Maydon Wharf Durban 20 757 18 060 - 72 000

Industrial - KwaZulu Natal


10 Industrial Avenue (c) 10 Industrial Avenue Paarl 24 875 3 259 - 56 300Cnr Giel Basson Drive & Nathan Mallach (c) Cnr Giel Basson Drive & Nathan Mallach Road Goodwood 10 430 5 902 - 94 000RoadCnr Isotope & Bridge Streets (c) Cnr Isotope & Bridge Streets Bellville 10 756 4 573 - 29 400Tygerberg Business Park (c) Trans Karoo Street, Parow Industria Parow 49 030 17 408 - 165 000


area (m2)



Industrial - Western Cape


31 Allen Drive (c) (g) 31 Allen Drive Bellville 2 969 3 255 - 29 400

Offices and Other - Western Cape

34 Mangold Street (g) 34 Mangold Street Port Elizabeth 1 606 968 - 5 500Nobel Street Office Park (c) Noble Street, Brandwag Bloemfontein 7 808 6 713 - 80 000

Offices and Other - Other

The Eveready Building (c) (g) Eveready Road, Struandale Port Elizabeth 112 001 56 412 - 122 000

Industrial - Other

21 Fricker Road (c) 21 Fricker Road, Illovo Sandton 3 718 2 800 - 48 500252 Montrose Ave 252 Montrose Ave Northriding - - - 133 200Cnr Old Pretoria & Alexandra Roads (c) (g) Cnr Old Pretoria & Alexandra Roads Midrand 5 857 - - 8 925Green Park Corner (c) Cnr West Road South & Lower Road, Morningside Sandton 12 726 15 660 - 288 000

Offices and Other - Gauteng

12 Sookhai Place (c) Derby Downs Office Park Westville 5 806 2 513 - 21 0003 The Terrace (c) 3 The Terrace, Westway Westville 3 017 2 278 - 21 500102 Essenwood Road (c) 102 Essenwood Road Durban 2 718 4 670 - 53 500

Offices and Other - KwaZulu Natal

Lykoi Proprietary Limited 1 Link Road, Bothasig Milnerton 11 327 - - 18 000

Storage - Western Cape


Blue Valley 55 Rooihuiskraai Road, Blue Valley Mall, Centurion Centurion 33 002 1 574 - 2 590Bryanston 82 Homestead Avenue Bryanston Bryanston 8 574 2 052 - 6 600Fourways Stone River Boulevard Midrand 34 725 2 978 - 6 900Hillfox Rhinoceros Road Hillfox Roodepoort 62 141 975 - 2 900Parkview Netcare Street and the M30 Moreleta Park Pretoria 64 497 2 572 - 4 100Pomona 57 Maple Road Pomona AH Kempton Park 13 691 4 451 - 4 020Princess Crossing President Street Roodepoort 28 346 2 339 - 4 100Randburg 242 Beyers Naude Drive Blackheath Randburg 1 983 263 - 1 400Rivonia 17 Wessels Road Rivonia 17 839 3 450 - 18 400Rosebank Rosebank Road Rosebank 690 1 364 - 2 100Sandton Ninth Avenue Sandton 66 331 1 485 - 2 870Stoneridge 55 Rooihuiskraal Raod, Blue Valley Mall Centurion 105 078 4 711 - 14 400Wandereres 55 Rooihuiskraal Raod, Blue Valley Mall Centurion 5 172 1 236 - 5 200Zambezi 55 Rooihuiskraal Raod, Blue Valley Mall Centurion 117 677 2 343 - 1 220SAC Storage Proprietary Limited Erand Agricultural Holdings Ext 1, 391 9th Street Midrand 25 697 - - 14 500Midway Mews Cnr Harry Galan & 7th Road, Halfway Gardens, Midrand 1 500 1 500 3 550

Storage - Gauteng



Umlazi Mega City, 50 Griffiths Mxenge Highway, Umlazi, KwaZulu Natal

Residential, retail and commercial - Other Inner-City - Gauteng


120 End Street (c) 120 End Street and 55 Davies Street Doornfontein 8 302 34 286 - 339 85050 Stiemens Street 50 Stiemens Street Braamfontein 1 427 1 427 - 13 580Afhco Corner 64 Siemert Road New Doornfontein 4 136 4 690 - 26 200Anchor Towers (c) 2 Plein Street (Cnr Harrison Street) Johannesburg 4 436 4 410 - 25 120Bridgeport (c) 98 De Korte Street Braamfontein 3 884 3 641 - 24 230Cavendish House (c) 183 Rahima Moosa Street (Formerly Jeppe Street) Johannesburg 993 5 604 - 77 370Legae (c) 217 Lilian Ngoyi Street (Formerly Bree Street) Johannesburg 1 242 7 109 - 87 190Hayani 112 End Street and 5 Rockey Street Doornfontein 2 344 6 928 - 77 990Frank & Hirsch (c) 352 Lilian Ngoyi Street (Formerly Bree Street) Johannesburg 2 680 10 255 - 113 660Hoeksbury 3 Hoek Street Johannesburg 248 613 - 9 350Impilo Place (c) 141 Rahima Moosa Street (Formerly Jeppe Street) Johannesburg 990 3 729 - 59 290Khan Corner 104 & 106 End Street Doornfontein 933 3 522 - 36 690Cambalala 30 Eloff Street Centurion 1 982 5 572 - 53 740Maxwell Hall (c) 96 Smal Street Johannesburg 6 864 6 944 - 70 410Moray House (c) 197 Rahima Moosa Street (Formerly Jeppe Street) Johannesburg 991 4 496 - 92 000Multi Glass 4-8 Mooi Street Johannesburg 3 968 - - 3 380Newgate (c) 180 Lilian Ngoyi Street (Formerly Bree Street) Newtown 7 148 12 716 - 157 060Normandie Court (c) 96 Kerk Street Johannesburg 5 440 4 472 - 48 240Mpumelelo 56, 58 & 60 Davies Street Doornfontein 2 344 13 412 - 221 740Small Street Mall (a) 195 Jeppe Street Johannesburg 1 984 540 - 30 320Station View 62 Davies Street Doornfontein 886 2 655 - 27 080Stuttafords House (c) 60 Pritchard Street Johannesburg 1 485 7 546 - 105 950Atkinson House (d) 28 Albert Street Johannesburg 1 984 8 795 - 112 130Lustre House 114 Goud Street Johannesburg 992 4 252 - 44 610Nukerk 73 Nugget Street Johannesburg 1 983 8 580 - 95 460


area (m2)




Ilanga House (c) 131 Pritchard Street Johannesburg 1 982 7 295 - 85 150Sambro House (c) 25 Kruis Street Johannesburg 1 985 5 041 - 60 510129 Jeppe Street Cnr 68 Simmonds & 129 Jeppe Street Johannesburg 496 1 011 - 9 250Chapel Court (c) Cnr Wanderers & 39 Plein Street Johannesburg 995 2 340 - 51 390CityMainII (c) Cnr Lilian Ngoyi & Von Weilligh Street (Formerly Johannesburg 497 354 - 13 640

Bree Street)Danina 19 Wanderers Street Johannesburg 249 173 - 9 030Elmol House (c) Cnr Lilian Ngoyi & Delvers Street (Formerly Johannesburg 248 944 - 20 330

Bree Street)Georgetown 36 Railway Street Germiston 1 129 878 - 10 080Johannesburg Shopping Centre 229 Jeppe Street Johannesburg 1 984 2 397 - 43 710Melbourne Court (c) 237 Lilian Ngoyi Street Johannesburg 249 612 - 27 650Queens Court (c) 247 Lilian Ngoyi Street Johannesburg 498 2 395 - 40 780Springbok Hotel (c) Cnr Lilian Ngoyi & Joubert Street (Formerly Johannesburg 1 495 1 397 - 32 010

Bree Street)Stanop House 72 Siemert Road New Doornfontein 1 018 6 655 - 15 370The Mall (g) Cnr DF Malan & Paul Sauer Street Vanderbijlpark 3 755 2 838 - 14 590Greatermans (c) 220 Commissioner Street Johannesburg 3 470 12 387 - 131 140Beechwood Cnr Raven and Nightingale Roads Randfontein - 2 610 - 19 460Rosewood Cnr Raven and Nightingale Roads Randfontein - 2 016 - 11 780Jeppe Post Office Rahima Moosa Street (Formerly Jeppe Street) Johannesburg 9 666 25 625 - 355 400Platinum Place (d) 40 Van Beek New Doornfontein 7 084 9 081 - 89 76081 Rissk Street 81 Rissk Street Johannesburg 994 4 147 - 84 130Hartmann and Keppler 43 Sherwell Street Doornfontein 468 - - 11 031Jabulani Mews (c) 2345 Dikgathehong Street Soweto 7 380 7 359 - 73 50042-44 De Villiers Street (c) 42-44 De Villiers Street Johannesburg 992 1 821 - 19 700Andrea Close Cnr Club and General Hertzog Roads Peacehaven Johannesburg 4 660 2 672 - 8 450Burgundy Forrest Hill Centurion 900 5 544 - 56 450Calderwood Lifestyle Estate (c) The Stewards Benoni 46 154 20 032 - 170 190Indlovu Complex (c) 2670/2/3 Doberman Street, Commercia Ext 9 Midrand 10 549 5 058 - 38 580Komati Complex (c) 2670/2/3 Doberman Street, Commercia Ext 9 Midrand 7 380 2 248 - 16 300Lethabong Complex (c) 2670/2/3 Doberman Street, Commercia Ext 9 Midrand 8 256 3 372 - 25 400Minuet (c) 44 Mozart Lane, Sagewood Midrand 5 829 4 726 - 45 580Panama House 200 Commissioner Street, City and Suburban Midrand 2 082 8 081 - 92 710Tubatse Village (c) Steelport Ext 9 Township Limpopo 26 105 12 670 - 81 510South Hills Nephin Road Johannesburg 64 830 31 820 - 343 760Dennehof and Bloekomhof Cnr Club and General Hertzog Roads Peacehaven Vanderbijlpark 26 244 11 733 - 36 900Golf Park (c) Phillip Nel Park Pretoria 16 076 9 986 - 99 250Reef Acres 8 Myrtle Road, Krugersrus Springs 4 698 5 519 - 36 080Long Street Preccinct Long Street, Jeppestown Johannesburg 48 587 - - 73 000Pink Houses and Rockey Retail Cnr Davies and Rocky Streets Doornfontein 935 - - 7 246Northgate Heights 243 Montrose Ave, Northgate Randburg 4 958 8 023 - 82 770Etude 51 Mozart Lane Midrand 900 17 181 - 160 920Jabulani Lifestyle Estate Cnr Matjhanbeng & Nkwe Street Soweto 14 854 11 520 - 107 680


area (m2)



Residential, retail and commercial - Other Inner-City - Gauteng (continued)





Total 3 790 265 1 496 204 17 372 832

Investment property - at valuation 13 509 822Properties under development 3 558 500Properties classified as held for disposal 304 510Total 17 372 832

Keys:(a) Indicates leasehold properties with leases expiring between 2025 and 2049.(b) Before straight line rental adjustment(c) Indicates properties bonded with Mega Pool(d) Indicates properties bonded with Agense Francaise Developpement (AFD)(e) Indicates a 75% share in property(f) Indicates a 50% share in property(g) Indicates properties held for disposal

Due to the sensitivity of the weighted average rental per m2 in the industrial and commercial portfolios, the weighted average has been disclosed in Appendix B.

(b)


area (m2)



Stuttafords House, 60 Pritchard Street, Johannesburg, Gauteng



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