SA Corporate June 2018 Interim Results Presentation

Transcription

1 SA Corporate June 2018 Interim Results Presentation September 2018 INDUSTRIAL RETAIL OFFICE RESIDENTIAL REST OF AFRICA Agenda Highlights Rory Mackey Financial Performance Antoinette Basson Portfolio Review Rory Mackey Unlocking Value in the Retail Portfolio Rory Mackey Improving The Industrial Portfolio & Reducing Commercial Exposure Rory Mackey Building the Afhco Business Rory Mackey Strategy & Prospects Rory Mackey Acknowledgements Rory Mackey Questions Team 2

2 HIGHLIGHTS RORY MACKEY 3 High Level Review Distribution Themes Half year distribution 3.1% lower than H Decline from non recurring income and base affects in PY and additional financing cost excluding which DPS growth would have been circa 2% Total NPI growth of 7.8%; LFL increasing by 2.4% Afhco portfolio NPI growth of 43.3% underpinned by greater contributions from acquisitions and developments; Afhco LFL NPI growth of 4.1%; reduced residential vacancies by GLA from 8.9% to 5.6% (excluding the units in tenanting up phases in respect of the joint initiative with Calgro M3) Retail portfolio LFL NPI growth of 3.8%; retentions of 86.2%; positive reversions of 2.6% and weighted average escalations of 7.6% Industrial portfolio LFL NPI growth of 2.3%; retentions of 70.8%; low vacancies of 1.2% Investment Strategy Executed acquisitions and pipeline totalling R1.5bn Executed & contracted disposals of R800m Committed developments to be completed in 2018 and 2019 with a total project cost of R1.4bn Capital Structure 74.1% of debt fixed through a combination of fixed rate debt and interest rate swaps for a period of 3.0 years LTV of 33.1% 4

3 FINANCIAL PERFORMANCE ANTOINETTE BASSON 5 Distribution HISTORY (CPS*) GROWTH (%) 45,00 25,0% 40,00 35,00 30,00 25,00 20,00 15,00 10,00 5,00 18,02 16,47 16,28 17,68 21,58 22,54 19,91 19,66 21,44 22,38 21,70 20,0% 15,0% 10,0% 5,0% 0,0% 10,5% 9,9% 9,4% 8,4% 7,3% 8,6% 11,2% 9,1% 4,4% 4,4% 3,1% Interim Final 5,0% Interim Final * Cents per share 6

4 Distribution at a Glance Jun 2018 Jun 2017 % Net Property Income Like for Like Net Property Income Developments Net Property Income Acquisitions Net Property Income Buildings sold Net Property Income Taxation on distributable earnings Investment in Joint Ventures Distribution related income Net finance costs Dividends from investments in listed shares Distribution related expenses Distributable earnings Rm Rm Variance (71.8) (0.260) (3.2) (100.0) ( ) ( ) (24.5) ,764.9 (23.254) (21.197) (9.7) Distribution per share (cents) (3.1) 7 Investment Properties Growth Analysis Portfolio growth underpinned by acquisitions, development expenditure and upward revaluation ( 248 ) Investment Properties December 2017 Acquisitions Improvements / Development costs Disposals Fair value adjustment Investment Properties June

5 Growth in Assets and Market Capitalisation R bn 25,0 cents , , , , ,0 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Total Assets (Rbn) Market Cap (Rbn) NAV per share (cents) Share Price (cents) 0 9 Net Asset Value 550,0 525,0 500,0 475,0 450,0 425,0 400,0 375,0 350,0 325,0 300,0 514, ,8 Opening NAV 1 Revaluation of January 2018 Investment Properties, Shares and Interest Rate Swaps Net exposure to Zambian JV (0.4) Other Nondistributable income statement items (22.5) Distributions paid December ,7 526,2 Distributable Closing NAV 30 earnings June June

6 Capital Structure Sources of Capital Debt finance sources are diversified between banks and institutional borrowings. 1,0% 2,8% Absa 2,8% Standard Bank Investec Nedbank 10,6% 11,0% Syndicated Loans 28,2% * State Bank of India Institutional and DFI Debts 3,1% # Equity 68,7% Equity Institutional and DFI Debts Syndicated Loans * Includes a R750m short term acquisition facility expiring in December 2018 # Includes R500m facility expiring in November Group Debt Structure at 30 June 2018 (excl. fixes) WAR of 8.2%, WAM of 1.7% and weighted average tenor of 2.2 years, which includes 2018 expiring debt without which the tenor would be 2.6 years. Apr 2024 Jan 2023 Jan 2023 Dec 2022 Sep 2022 Sep 2022 Dec 2021 Dec 2021 Dec 2020 Nov 2020 Jun 2020 Jan 2020 Dec 2019 Nov 2019 Mar 2019 Dec 2018 Nov 2018 Nov 2018 Nov 2018 * Amortising, 6,88% Cross Currency (ZAR), 8,91% Cross Currency (US$), 4,36% Term Loan (Syndication), 8,93% Cross Currency (ZAR), 8,94% Cross Currency (US$), 3,98% Term Loan (Syndication), 8,87% Term Loan (Syndication), 8,77% Term Loan (Syndication), 8,74% 373 Term Loan (Syndication) (US$), 4,17% Term Loan (Syndication), 8,70% Term Loan (Syndication), 8,64% 848 Term Loan (Syndication), 8,72% Revolving credit, 8,53% Revolving credit, 8,41% Revolving credit, 8,46% Term Loan, 8,60% Term Loan, 8,55% 30 Term Loan, 8,55% Amount Drawn (Rm) Amount Available (Rm) * AFD Fixed rate debt 12 1 The Group entered into an additional cross currency transaction in Jan 2018 swapping R120m of debt at a variable rate of 8.91% for a $10m debt at a fixed rate of 4.36%

7 Group Debt Structure at 30 June 2018 (incl. fixes) Maturity and interest rate profile of interestbearing debt WAR inclusive of fixes of 8.5%. Current LTV 33.1% Apr 2024 Jan 2023 Jan 2023 Dec 2022 Sep 2022 Sep 2022 Dec 2021 Dec 2021 Dec 2020 Nov 2020 Jun 2020 Jan 2020 Dec 2019 Nov 2019 Mar 2019 Dec 2018 Nov 2018 Nov 2018 Nov 2018 * Amortising, 6,88% 102 Cross Currency (ZAR), 9,23% Cross Currency (US$), 4,36% Term Loan (Syndication), 9,25% Cross Currency (ZAR), 9,26% Cross Currency (US$), 3,98% 500 Term Loan (Syndication), 9,19% Term Loan (Syndication), 9,09% Term Loan (Syndication), 9,06% 373 Term Loan (Syndication) (US$), 3,59% Term Loan (Syndication), 9,02% Term Loan (Syndication), 8,97% 848 Term Loan (Syndication), 9,04% 300 Revolving credit, 8,85% 200 Revolving credit, 8,73% Revolving credit, 8,78% Term Loan, 8,92% Term Loan, 8,87% 30 Term Loan, 8,87% Amount Drawn (Rm) Amount Available (Rm) * AFD Fixed rate debt 13 Group Interest Rate Swap Profile 30 June 2018 Rate of 6.87% (weighted swap margin 0.25%) and weighted average tenor of 3.0 years % of variable rate debt hedged by interest rate swaps % of effective debt fixed (incl fixed rate debt) ,86% ,45% ,60% ,79% * ,35% Swap amount (Rm), weighted average rate * Includes $27m swap at 1.79% (based on US LIBOR) There are no swaps expiring in

8 Group Net Cash Flow (2) (9) (2) (9) (500) (1 000) (570) (698) (1 500) (2 000) Rm Balance 31 December 2017 Cash generated from operations net of finance cost and taxation Distributions paid Acquisitions and Improvements to Investment Properties and Property, Plant and Equipment Disposal of investment properties Other financial assets Loans to developers Investments in Joint Ventures Letting commissions and tenant installations Treasury buy back of shares Loan from noncontrolling shareholder Interest bearing borrowings foreign Interest bearing borrowings local Balance 30 June PORTFOLIO REVIEW RORY MACKEY 16

9 Overview Sectoral Analysis (excl. Rest of Africa JV) 23% 4% 23% 22% 6% 2% June % June 2018 Sectoral Profile (% of GLA) 48% Sectoral Profile (% of Market Value) 28% 4% 25% 7% 20% Industrial 19% June 2017 June % 30% Retail Commercial AFHCO Storage Industrial Retail Commercial AFHCO SA Corporate excluding Zambian JV 199 Properties Total GLA 1,532,752m 2 Total Portfolio R16.9bn (Dec17: R16.4bn) Excludes development bulk across the portfolio measuring m 2 comprising 12 properties, of which 3 were partly bulk retail properties, and valued at R0.4bn. Zambian JV 3 Properties GLA 62,170m 2 Portfolio Value R985.1m (Dec17: R875.0m) 43% Market Value per m² % Storage Industrial Retail Commercial Storage AFHCO Average June 2017 December 2017 June Like for Like Portfolio: Weighted Average discount rate 15.0% Weighted average capitalisation rate 9.3% 17 Property Portfolio Acquisitions, Disposals and Developments ,00% ,00% ,00% 800 6,00% 600 9,9% 10,4% 10,0% 9,9% * 8,5% 8,7% 4,00% ,00% Committed Developments Acquisitions Contracted Acquisitions Disposals Contracted disposals Group WACC 0,00% Cost / Carrying Value (Rm) Selling Price (Rm) Yield forecast 1st 12 months Exit yield on sales price * Weighted average cost of capital at 31 July

10 Executed Acquisitions Property Sector Forward Yield % Purchase price (R000) Transfer date Northgate Heights Phase 1E, Northgate Residential ,165 Jan18 Calgro M3 Developments Fleurhof 31, Randburg 1 Residential ,946 Feb18 Calgro M3 Developments Scottsdene Erf 3833 Buildings 5 & 6, Scottsdene 1 Residential ,731 Feb18 Calgro M3 Developments South Hills Blocks 1, 3, 5, 1013 & 15, South Hills 1 Residential ,676 Feb18 May18 The Oaks, Ermelo Retail ,000 Mar18 Calgro M3 Developments Scottsdene Erf 3837 Building 11, Scottsdene 1 Residential ,898 Apr18 Northgate Heights Phase 2A B, Northgate Residential ,783 Apr18 May18 Calgro M3 Developments Jabulani Lifestyle Phases 1 & 2, Soweto 1 Residential ,046 Apr18 May18 African City Mall Final Phase, Johannesburg CBD Retail ,873 Apr18 Jun18 Total ,118 1 Represents 51% ownership in the joint initiative 19 Contracted Acquisitions Property Sector Forward Yield % Purchase price (R000) Expected transfer Northgate Heights Phase 2C, Northgate Residential ,417 1 Jul18 Calgro M3 Developments South Hills Block 8, South Hills 2 Residential ,541 1 Jul18 Calgro M3 Developments Jabulani Lifestyle Phase 3, Soweto 2 Residential ,082 1 Jul18 Calgro M3 Developments South Hills Block 9, South Hills 2 Residential ,784 1 Aug18 Calgro M3 Developments Jabulani Lifestyle Phases 45, Soweto 2 Residential ,340 1 Aug18 Calgro M3 Developments South Hills Blocks 67 & 14, South Hills 2 Residential ,324 1 Aug18 Calgro M3 Developments Jabulani Lifestyle Phase 6, Soweto 2 Residential ,894 Sep18 Long Street Precinct bulk (Parcels 57), Jeppestown Residential # 12,235 Sep18 Northgate Heights Phases 2D H, Northgate Residential ,402 Sep18 Jan19 Calgro M3 Developments South Hills Blocks 2, 4 & 16, South Hills 2 Residential ,676 Sep18 Oct19 M&T Development Etude Phases 46, Midrand Residential ,291 Oct18 Dec18 Calgro M3 Developments Belhar 2 Residential ,123 Oct18 Nov19 M&T Development Founders Hill 3 Residential ,907 Feb19 Jun20 Calgro M3 Developments Fleurhof 37, Randburg 2 Residential ,358 Aug19 M&T Development Menlyn East End Development 3,4 Residential ,600 Jun21 Total ,168,973 # Land/Bulk acquired for development 1 Transferred 2 Represents 51% ownership in the joint initiative 3 Represents 60% ownership in the joint initiative 4 SA Corporate has also secured an option to participate in phases 2 & 3 of the development, with an estimated value of R793m and R529m respectively (based on 2020 pricing) 20

11 Disposals Executed Property Sector Exit Yield % Gross price (R000) Transfer date Atterbury Décor, Pretoria Retail ,786 Jan18 Rhodesdene Shopping Centre, Kimberley Retail ,000 Mar18 22 Voortrekker Road, Vredenburg Commercial ,500 May18 Lebombo Road, Garsfontein (Portion) Commercial ,000 Jun18 21 Pomona Road, Pomona Industrial ,250 Jun18 Total ,536 Contracted and Unconditional Property Sector Exit Yield % Gross price (R000) Expected transfer 9/15 Lanner Road, New Germany Industrial ,000 1 Jul18 6 Cedarfield Close, Springfield Park Industrial ,000 Sep18 28 Durham Street, Mthatha Commercial ,500 Sep18 1/5 Stockville Road, Westmead Industrial ,600 Sep18 11 Coconut Grove, Shakashead Industrial 7.6 2,400 Sep18 24 Westmead Road, Westmead Industrial ,000 Sep18 40 Electron Avenue, Isando Industrial ,672 Oct18 Table Bay Industrial Park, Paarden Eiland Industrial ,450 Oct18 The Mall, Vanderbijl Park Afhco Retail ,600 Dec18 Total ,222 Contracted and Conditional Exit Yield % 1 Transferred 2 Exit yield in year 2 is 6.8% due to a negative reversion 3 Exit yield based on head lease rental Gross price (R000) Expected transfer Property Sector Hotel at Cullinan Jewel Shopping Centre, Pretoria Retail 9.0 2,700 Sep18 1 Marconi Street, Montague Gardens Industrial ,000 Sep18 14/24 Mahoganyfield Way, Springfield Park Industrial ,000 Nov18 Total , Lease renewals % Rental Reversions 10,0% 8,0% 7,9% 6,0% 4,0% 2,0% 2,6% 0,0% 2,0% 0,2% 4,0% 3,1% 6,0% 8,0% 10,0% 8,5% Industrial Retail Commercial Total (excl. AFHCO) AFHCO Retail / Commercial 06 months to June 2018 No retentions and reversions have been disclosed for the Residential and Storage sectors due to the short term nature of their leases 22

12 Contracted Rental Escalation Profile 9,5% 9,0% 8,9% 8,5% 8,0% 7,9% 7,6% 7,9% 7,8% 7,5% 7,0% 6,5% Industrial Retail Commercial Total (excl AFHCO) AFHCO Retail / Commercial Afhco residential increases ~ 4% 23 Group Lease Expiry Traditional Portfolio 35,0% 120,0% 30,0% 29,2% 100,0% 25,0% 19,7% 80,0% % of GLA 20,0% 15,0% 17,1% 14,9% 60,0% 10,0% 10,9% 40,0% 5,0% 6,0% 20,0% 2,2% 0,0% Vacancies Monthly % of GLA 2,2% 6,0% 10,9% 17,1% 14,9% 19,7% 29,2% Cumulative 2,2% 8,2% 19,1% 36,2% 51,1% 70,8% 100,0% 0,0% 24

13 Group Lease Expiry Afhco Retail / Commercial 35,0% 120,0% 30,0% 29,0% 100,0% 25,0% 80,0% 20,5% % of GLA 20,0% 15,0% 14,2% 17,9% 60,0% 40,0% 10,0% 7,2% 6,7% 5,0% 4,5% 20,0% 0,0% Vacancies Monthly % of GLA 4,5% 7,2% 6,7% 14,2% 20,5% 17,9% 29,0% Cumulative 4,5% 11,7% 18,4% 32,6% 53,1% 71,0% 100,0% 0,0% 25 Traditional Vacancy Profile (% of GLA) 8,0% 7,0% 6,7% 6,4% 6,0% 5,7% 5,0% 4,0% 3,0% 2,0% 1,6% 1,5% 1,2% 3,9% 3,1% 3,5% 2,6% 2,3% 2,2% 1,0% 0,0% Industrial Retail Commercial Total June 2017 December 2017 June

14 Traditional Vacancy Profile (% of gross rental) 7,0% 6,0% 5,5% 6,0% 5,5% 5,0% 4,0% 3,0% 3,2% 3,0% 3,4% 2,5% 2,4% 2,6% 2,0% 1,0% 1,1% 1,0% 0,9% 0,0% Industrial Retail Commercial Total June 2017 December 2017 June Afhco Vacancy Profile (Residential % of Units / Retail & Commercial % of GLA) 28

15 Arrears Tenant receivables as a % of rolling 12 months income 4,5% 4,0% 3,6% 3,9% 3,8% 3,5% 3,0% 2,8% 2,5% 2,4% 2,0% 1,5% 1,0% 0,5% 0,0% Jun16 Dec16 Jun17 Dec17 Jun18 29 UNLOCKING VALUE IN THE RETAIL PORTFOLIO RORY MACKEY 30

16 Retail Solar Installations (ZAR Saved & KWH Generated) Rand R Total Rand and KWH Saving KWH R R R R R R R R 0 0 Total Rand KWH 31 Jeppe Street Post Office Retail Anchored by Boxer Superstore 2,342m² (Opened 24 July 2018) Inner City grocer trading density as much as 50% higher than suburban GLA 93 properties 8,289m² Tenant mix: GLA = m Supermarket 2 1.4% Cell Vacancy Phones & Repairs Apparel Avg. Rental Bags = R 52.16/m 2 Shoes Jewellery Cosmetics ATM s 83 properties GLA = m 2 # 0.9% Vacancy Avg. Rental = R 62.16/m 2 32

17 51 Prichard Redevelopment From: October 2018 To: October 2019 GLA = 14,527m 2 GLA = 15,039 m 2 Edcon = 14,419m 2 6 Line Shops = 620m 2 Capex = R62mil Edcon (1 st Floor) = 4,349m 2 Supermarket (Ground Floor) = 3,430m 2 Line Shops (Ground Floor and lower ground) = 3,813m 2 Gym and Storage (Basement) = 2,935m 2 33 Extension to East Park Mall, Lusaka Existing 35,000m 2 ; Extension 12,000m 2 ; Ultimate development > 60,000m 2 12,000m 2 extension to be anchored by Shoprite SA Corporate shall acquire a 50% interest in extension at 9% USD yield adjusted for any movement in the 5 year USD Swap Rate Addition of further quality retail space to the premier retail node in Lusaka 34

18 Extension to East Park Mall, Lusaka (continued) 35 Shoppertainment Making Shopping Centres a Destinational Experience Musgrave Centre Roof Top Night Market Umlazi Mega City Community Radio Station & Mega Talent Search East Point Katy Perry Witness Tour Event Town Square to Time Square 36

19 NonGLA Income Mall Ads Mall TV TM Mall Radio TM Exhibitions Popup shops particularly focused on experience, e.g. Combat Laser Tag and Escape Room at Musgrave Centre Internet Connectivity/WiFi (20 Shopping Centre Rollout) Tenant line rental Mobile Application (App) Advertising Loyalty programme Push notifications Shopper analytics 37 IMPROVING THE INDUSTRIAL PORTFOLIO & REDUCING COMMERCIAL EXPOSURE RORY MACKEY 38

20 Industrial Dec 2014 Jun 2018* 93 properties GLA = 793,395 m 2 1.4% Vacancy Avg. Rental = R 52.16/m 2 Sales (Avg. Exit Yield=8.2%) IHS Pharmaceutical DC Redevelopment 42,000m 2 76 properties GLA = 674,139 m 2 # 0.7% Vacancy** Avg. Rental = R 62.35/m 2 39 * Excluding contracted disposals. # Including IHS extension. ** Including vacancies filled in July Industrial Expiries 2018 H2 Expiries 99,635 m 2 H2 Renewed/ReLet to Date 85% Reversion negative 18% H2 Remaining Renewal 15% remaining to be renewed Anticipated reversion positive 7% H2 Forecast Renewal negative 14.5% Excludes Sold and Held for Sale buildings 40

21 Reducing Commercial Exposure Sectional title divestment of Green Park 640m 2 floorplates offer one or two tenant address per floor Mixed office & residential node offers live & work lifestyle in central Sandton Premium for ownership offers attractive exit opportunity Value to be realised from vacant space 41 BUILDING THE AFHCO BUSINESS RORY MACKEY 42

22 Residential Rental Analysis (Stable Portfolio) Row Labels Average of Current Rent Average of Rental per m 2 Vacancy % Inner City Affordable Product 3, % Inner City Low End Product 2, % Suburban Lower LSM 4, % Suburban Middle LSM 6, % 43 Inner City & Suburban Tenant Preferences Profile Element Inner City Suburban Average Income R16,000 R25,400 Age 18 to 24: 12% 25 to 34: 47% 35 to 44: 20% >44: 21% 18 to 24: 6% 25 to 34: 53% 35 to 44: 25% >44: 16% Apartment Type Bachelor & 1 bed: 90% 2 bed: 10% Primarily 2 bed RANKING OF REQUIREMENTS Inner City Suburban Rental & Price (include incentives free rental, discounts) 1 3 Security & Crime 2 4 Free WiFi 3 2 Infrastructure (backup for water and electricity) 4 1 Amenities (family/lifestyle activities, play areas, gym, laundry facilities) 5 6 Service 6 5 Loyalty Programs 7 7 Accessibility (of location)

23 Vacancy Reductions Success Stories Property Vacancies Prior After Time period Interventions 120 End Street 11% 2% 5 months Greatermans 30% 5% 8 months Platinum Place 29% 3% 7 months WiFi; Common area upgrade WiFi; Indoor Gym; Tenant Shuttle; Common area upgrade; Braai facilities; Rental rebasing. Outdoor Gym; Tenant Shuttle; Braai facilities; Rental rebasing. 45 Western Cape Case Study on Rental Pricing Sensitivity 93 properties GLA = m 2 1.4% Vacancy Avg. Rental = R 52.16/m 2 83 properties GLA = m 2 # 0.9% Vacancy Avg. Rental = R 62.16/m 2 Above inflationary rental escalations result in vacancy rate increasing from below 4% in Q1 to 7.5% in Q2 46

24 Menlyn East End Development Transaction High quality high rise apartments Located directly adjacent Menlyn Maine in Menlyn Sky bridge from development to Menlyn Maine Precinct Phase 1: 240 apartments in joint initiative 452 above ground and subterranean parking bays 47 Menlyn East End Development Transaction (continued) Development to be developed by M&T Development Development to be acquired by the joint initiative with M&T Development in which SA Corporate has a 60% share Property management to be by Afhco Property Management at 6% of gross rental Option to participate in phase 2 & 3 of the development Targeted yield of 10% Summary of the entire development: No. of Units Estimated value (2020 pricing) Estimated SAC investment (2020 pricing) Expected delivery date Phase R352m R211m Jun21 Phase R1,322m R793m Dec23 Phase R881m R529m Dec25 Total 1,740 R2,555m R1,533m 48

25 49

26 STRATEGY & PROSPECTS RORY MACKEY 50 Recent Detractors to 2018 H2 Prospects Item Negative Impact Comments Transnet ground rentals iro Industrial leasehold properties at Maydon Wharf R5 million Ground rentals almost doubled R8.52 to R16.17 per m 2 & backdated to October 2017 Industrial H2 reversions R3 million Imperial & RTT renewals totalling 121,905m 2 having a negative reversion of 19% versus forecast negative 12% Industrial vacancy R1 million 3,500m 2 delinquent tenant East Point Game downsizing R3 million Downsizing from 11,000m 2 to 8,000m 2 Slower take up of Retail vacancies at UMC, Morning Glen & Montana R3 million 4 month slower take up of 5,000m 2 Crossing Retail t/o rental decline R4 million Worsened trading conditions Lower rental achieved from new FNB lease at Acacia Office Park in Lusaka Retail/Industrial Johannesburg rates increases R1 million Rentals achieved were US$2 per m 2 lower than forecast R5.6 million Rates increases from higher than anticipated valuations being challenged Afhco Municipal Charges R5 million Additional rates (post valuation objections), sewage & water charges 51

27 Strategy & Prospects Focus: Consolidating a quality industrial property portfolio Divesting from remaining commercial properties Concentrating retail portfolio on food services & convenience Establishing a quality residential rental portfolio to offer investors diversification to other South African property sectors The Board of Directors anticipates a similar decline in distribution in 2018 H2 as has been the case in 2018 H1 52 ACKNOWLEDGEMENTS 53

28 QUESTIONS 54 ADDITIONAL SLIDES 55

29 Trading Volumes and Liquidity SAC: closing price v monthly volume traded Value traded as % of market capital % % % FFA FFB RES GRT % EMI SAC HYP RDF % VKE 0 Jul17 Aug17 Sep17 Oct17 Nov17 Dec17 Jan18 Feb18 Mar18 Apr18 May18 Jun18 20% IPF Volume Traded Closing Price ( c ) 0% Overview Geographical Analysis (excl. Rest of Africa JV) 5% 6% Geographical Profile (% of GLA) 5% 6% Gauteng 27% Jun % Jun 2017 KwaZulu Natal Western Cape 62% 61% Other 4% 3% Geographical Profile (% of Market Value) 5% 3% Gauteng 31% Jun % 31% Jun 2017 KwaZulu Natal Western Cape Other 61% Dec

30 Overview Sectoral Analysis (Afhco) Retail / Commercial 19% (Jun %) By GLA 62 Properties GLA 356,405m 2 Market Value R3.7bn Residential 81% (Jun %) Weighted average capitalisation rate 10.3% Afhco also owns residential bulk of 114,470m 2 to be redeveloped 58 Overview Tenant Grading by GLA Traditional Portfolio Total Portfolio per sector C 11% 80% 70% 60% 67% 54% 53% 62% B 27% A 62% 50% 40% 30% 20% 10% 26% 7% 31% 15% 29% 18% 27% 11% 0% Industrial Retail Commercial TOTAL A B C "A": large national tenants, large listed tenants, government and major franchisees "B": national tenants, listed tenants, franchisees, large regional tenants, medium to large professional firms "C": other 59