ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2017

Transcription

1 ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2017

2 AGENDA 01 Milestones & Highlights 02 Financial Results 03 Capital Management 04 Portfolio Update 05 Property Investment & Development South Africa V&A Waterfront GOZ Globalworth 06 Conclusion 07 Annexures Oxford Corner, Rosebank 2

3 MILESTONES & HIGHLIGHTS M1 Place, Eastgate, Sandton

4 MILESTONES Good progress implementing strategic initiatives, including Internationalisation, Funds Management and Trading and Development V&A Waterfront Completion of Silo Precinct scheduled for September when the Zeitz MOCAA and Radisson Red Hotel opens South Africa Gross monthly billings in excess of R1bn Sale of Harrowdene to Huawei for R846m First Trading Profit and Development Fee income earned m² of space let in FY17 4

5 Australia Successful acquisition of AUD440.3m GPT Metro Office Fund (GMF) Significant portfolio reweighting through AUD480m office asset purchases and AUD166m strategic industrial asset sales: - Office 66% vs. 56% at FY16 - Geographically to New South Wales 26% from 20% at FY16 Eastern Europe Successful EUR186.4m acquisition of 26.9% of Globalworth Real Estate Investments (GWI) Funds management R2.3bn Healthcare Fund established with 5 assets Capital raise to third parties scheduled for HY18 Further acquisitions and developments in the pipeline 5

6 Open JV (50/50) Strategic venture aligning ourselves with the co-working, flexible office trend Anticipated rollout of 8 locations in 3 years, with 138 West Street Sandton just opened Open will operate the sites and GRT will provide the funding Incubator for thriving businesses and tomorrows office users Delivering on our strategic initiatives in line with our vision: To be a leading international property company providing space to thrive 6

7 195.8 cents PERFORMANCE HIGHLIGHTS 6.5% growth in total FY17 dividend per share Final dividend of 100.8c up 6.9% compared to FY16 final dividend of 94.3c R5.6bn Total distributable income 10.4% growth FY16 to FY17 R122.3bn Group property assets 7

8 27.1% RSA total expense to income ratio Expenses under control 35.0% Group LTV Gearing remains below 40% Increased from 33.7% at FY16 Total RSA arrears R60.4m Well contained 6.5% of collectables R13.2m bad debt write off (I/S) Vacancies 4.4% RSA vacancies improved from 5.7% at FY16 Strong focus on tenant retention and leasing 8

9 COMPANY HIGHLIGHTS Largest South African primary listed REIT 21 st largest company in the FTSE/JSE Top 40 Index Gross market capitalisation R70.7bn Liquid and tradeable: - R3.8bn average value of shares traded per month 8 th year inclusion in FTSE/JSE Responsible Index 1 st year inclusion in the FTSE4Good Emerging Index Top 10 constituent of FTSE EPRA/NAREIT Emerging Index Investment proposition Sustainable quality of earnings 14 year track record of uninterrupted dividend growth Underpinned by high-quality physical property assets Diversified across international geographies and sectors Dynamic and proven management track record Best practice corporate governance Transparent reporting Level 3 BEE contributor 9

10 GROWTH IN DIVIDEND PER SHARE (cents) 8.3% 7.5% 6.0% 6.5% Growth 6.5% FY13 FY14 FY15 FY16 FY17 Interim dividend Special dividend Final dividend The Place, Sandhurst, Sandton 10

11 GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION Rbn 135 cents c 2 448c FY11 FY12 FY13 FY14 FY15 FY16 FY Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share (cents) 11

12 LONG BOND YIELD VS. GRT FORWARD YIELD 11% Long Bond GRT Forward Yield 10% 9% 8% 8.80% 8.18% 7% 6% 5% 4% 2012/01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/12 Jun 2011 Dec 2011 Jun 2012 Dec 2012 Jun 2013 Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun 2016 Dec 2016 Jun 2017 Greencourt A & B, Bucharest, Romania 12

13 FINANCIAL RESULTS Waterway House, V&A Waterfront

14 CONSOLIDATED DISTRIBUTION CALCULATION FY17 Rm FY16 Rm INCREASE/ (DECREASE) Gross property income % RSA (1) % GOZ % Property expenses (2 245) (2 126) 5.6% RSA (1 901) (1 864) 2.0% GOZ (344) (262) 31.3% Net property income % Other operating expenses (416) (308) 35.1% RSA (289) (204) 41.7% GOZ (127) (104) 22.1% Net property income after operating expenses % Finance costs (2 510) (2 466) 1.8% RSA (1 944) (1 989) (2.3%) GOZ (566) (477) 18.7% Finance income % Investment income from V&A Waterfront % Investment income from GWI % Other finance income (2) (29.9%) Adjustment for NCI, foreign exchange profit /(loss) and normal taxation (734) (552) 33.0% Distributable income % Dividend for the period % 1. Trading Profits and Development Fees of R91m included in revenue. 2. Includes R52m (FY16: R39m) dividends received on treasury shares held, R45m (FY16: R31m) antecedent dividend, R0m (FY16: R22m) distribution from Stenham and R45m (FY16: R50m) interest on V&A Waterfront development funding. * Average exchange rate at R10.26/AUD (FY16: R10.57/AUD) for GOZ. 14

15 Distributable income growth of 10.4% INCOME STATEMENT Steady contribution from South Africa First inclusion of Trading Profit and Development Fee income Solid contribution from the V&A, growth has slowed down as the base has grown Stable contribution from GOZ due to additional investment of 48.8m shares but earnings impacted negatively due to the higher expected (9.7%) and actual withholding tax rates (9.7% at HY17 vs. 6.9% at HY16 & 6.5% at FY16 ) and the stronger ZAR (R10.26/AUD1 average vs. FY16 at R10.57/AUD1) First dividend contribution from GWI of EUR0.22 cps Net property income from GOZ increased 19.9% mainly as a result of the acquisition of GMF RSA net property income under pressure Costing more to keep and attract tenants in a fiercely competitive and weak market 15

16 Expenses remain under control SA property expenses under control Operating expenses increased as a result of less development fees earned in the current period and the reallocation of expenses V&A Waterfront and GOZ expense ratios up slightly due to increased office weightings Property Expense Ratio Operating Expense Ratio Total Expense Ratio South Africa 23.5% 3.6% 27.1% V&A Waterfront 28.1% 3.3% 31.4% GOZ 13.0% 4.8% 17.8% Reduction in finance costs for RSA due to increase in use of CCIRS Increase in finance costs for GOZ due to acquisition of GMF 11.7% increase in investment income received from the V&A driven mainly by hotel occupancies combined with the conversion of development activity into income producing assets 16

17 CONSOLIDATED BALANCE SHEET (EXTRACTS) FY17 Rm FY16 Rm INCREASE/ (DECREASE) Property portfolio (1) % RSA % GOZ (2) % 50% Investment in V&A Waterfront % 26.9% Investment in Globalworth % Other property-related investments (48.6%) Nominal borrowings (3) % RSA (4) % GOZ (2) (5.0%) Shareholders interest % 1. Includes R1 241m (FY16: R1 938m) of properties classified as held for sale. 2. Closing exchange rate R10.04/AUD (FY16: R11.04/AUD). 3. Excludes fair value adjustments. 4. The total value for FY17 excludes the deferred payment of R85m (FY16: R165m) on the Samrand land purchased. The outstanding payment is due in September

18 BALANCE SHEET 4.5% or R4.7bn increase in property values (RSA and GOZ) R5bn for the acquisition of GMF in GOZ R1.5bn of assets acquired for the Healthcare Fund 18.8% increase in borrowings in RSA which was used to fund the GWI acquisition, acquisition of assets for the Healthcare Fund and further investment into the V&A Waterfront and GOZ 4.6% increase in borrowings in AUD for GOZ as a result of the GMF acquisition which, after the foreign exchange gain of R1.4bn, results in a 5.0% decrease in borrowings in Rands NAV up 1.7% to cents per share from FY16 18

19 CONTRIBUTION TO DISTRIBUTABLE INCOME R4 232m % R5 072m % 15.2% 8.5% R5 600m % 1.6% 15.4% 8.6% Growth 10.4% % % % % % FY15 FY16 FY17 RSA V&A Waterfront GOZ Trading & Development Listed Investments (1) Anslow, Bryanston, Sandton 1. Listed Investments for FY17 consist of investment in GWI, FY16 consists of investment in Stenham. 19

20 CAPITAL MANAGEMENT 1 Charles Street, Paramatta, NSW, Australia

21 Total debt R29.3bn RSA CAPITAL MANAGEMENT Unsecured debt increased by R4.5bn, of which R3.5bn is corporate bonds 17 new bond issues, publicly and privately placed, listed and unlisted, at margins between 140 to 185 basis points with terms of 3 to 7 years Demand in bond market exacerbated by demand for HQLA bonds by banks EUR100m loans for GWI investment Unencumbered assets (properties & investments) R44.2bn Weighted average cost of debt decreased to 9.2% excluding CCIRS and EUR debt Investment activities Funded from: - R2.5bn equity DRIP proceeds - R4.6bn net new borrowings - R2.0bn property disposals Interest rate risk 85.6% of the liabilities are at fixed interest rates for an average term of 3.9 years 21

22 AUD & EUR cross currency interest rate swaps (CCIRS) Total AUD700m representing 76% of historical cost and 52% of market value of GOZ Total EUR86.4m together with the direct EUR loans representing 100% of the historical cost of GWI Credit rating Our rating is capped at the sovereign rating due to our operational concentration in SA Moody s National Scale rating AAA.za & Global Scale rating is Baa3 Negative outlook due to negative outlook on sovereign rating Group LTV 35.0% vs 33.7% at FY16 Increased due to funding of investment activities mainly by way of debt in both RSA and GOZ RSA LTV 33.4% vs. 30.5% at FY16 - Further investment in GOZ - Acquisition of assets for the Healthcare Fund - GWI investment GOZ LTV 39.4% vs. 42.0% at FY16 - GMF transaction initially increased the LTV which has subsequently been decreased through asset sales Group Interest Cover Ratio increased to 3.5x from 3.3x 22

23 Exchange rate risk ZAR has been relatively strong to the AUD and EUR for the majority of FY17 Only 29% of GOZ dividends were hedged for FY18 at 30 June 2017, subsequently taken advantage of the ZAR weakness and 64% now hedged RSA facilities FY17 FY16 Unutilised committed facilities (Rbn) Weighted average term of liabilities (years) Weighted average term of fixed interest rate profile (years) (Incl. AUD & EUR CCIRS and IRS) Weighted average interest rate (%) Weighted average interest rate (%) (Incl. AUD & EUR CCIRS and EUR debt) % debt at fixed interest rate Unencumbered assets (incl. V&A Waterfront and listed investments) (Rbn) Unsecured debt (Rbn)

24 PORTFOLIO UPDATE Discovery, Sandhurst, Sandton

25 CONSOLIDATED NET PROPERTY INCOME OVERVIEW NET PROPERTY INCOME V&A Waterfront 5.7% GWI (1) 1.0% 26.3% Offshore GOZ 25.3% 68.0% RSA Greenfield Industrial Park, Cape Town 1. Includes 100% of RSA, 100% of GOZ, 50%of the V&A Waterfront and 26.9% of GWI. 25

26 CONSOLIDATED PORTFOLIO VALUE OVERVIEW PROPERTY PORTFOLIO (by value) V&A Waterfront 7.1% 3.4% (1) GWI 30.0% Offshore GOZ 26.6% 62.9% RSA Eastgate, Sandton 1. Includes 100% of RSA, 100% of GOZ, 50%of the V&A Waterfront and 26.9% of GWI. 26

27 PORTFOLIO UPDATE SOUTH AFRICA Key West, Krugersdorp

28 Net property income (Rm) Vacancy (%) In force leases SOUTH AFRICA Average gross rental (per m²/month) (R) Average in force escalations (%) Weighted average lease period (years) Renewals Total letting success rate (%) Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Arrears Arrears (Rm) Provision for bad debts (Rm) Bad Debts (I/S) (Rm) FY Retail NPI still showing growth based on the successful renewal of existing leases Renewal success rates deteriorated and renewal growth remains under pressure, both as a result of new competition, which continues to cannibalise trading densities in a weak macro economic environment, with a very constrained consumer Most of our top 16 shopping centres have faced or will face competition 1.3% portfolio average trading density growth, weighted by GLA Vacancies are ticking up as tenants consolidate and reduce space. We expect vacancies to peak in HY18 and settle thereafter at current levels 2.1% core vacancy vs. 2.0% FY16 International retailers are not a natural plug in Arrears as a % of collectables improved slightly from 9.7% to 9.3% We need to keep our centres relevant and as part of our ongoing strategy to improve our offering, we are giving Lakeside and Festival Mall a facelift and we are reconfiguring the food courts at Kolonnade and Waterfall Mall Long term strategy to consolidate and hold larger centres in the major urban areas 28

29 Net property income (Rm) Vacancy (%) In force leases Average gross rental (per m²/month) (R) Average in force escalations (%) Weighted average lease period (years) Renewals Total letting success rate (%) Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Arrears Arrears (Rm) Provision for bad debts (Rm) Bad Debts (I/S) (Rm) FY (1.8) Office Economic drivers are indicative of a sector under pressure Supply generally continues to exceed demand with consolidation remaining a key theme Higher incentives and lower rental levels still the order of the day to attract and retain tenants Renewal growth rates still negative but improved from -3.5% Growthpoint vacancies are well contained and are below the MSCI office benchmark which is testament to our quality portfolio and staff efforts Arrears as a % of collectables improved slightly from 3.7% to 3.3% Demand is for new P grade green buildings 76 Office buildings valued at R13bn green star rated by the Green Building Council of South Africa (GBCSA) Discovery completion in sight with income positively impacting the second half of FY18 Earthworks at 144 Oxford Road in Rosebank commenced Asset management strategy is very important; need to buy correctly, do the right developments and dispose of non-core properties 29

30 Net property income (Rm) Vacancy (%) In force leases Average gross rental (per m²/month) (R) Average in force escalations (%) Weighted average lease period (years) Renewals Total letting success rate (%) Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Arrears Arrears (Rm) Provision for bad debts (B/S) (Rm) Bad Debts (I/S) (Rm) FY Industrial The industrial asset class has come into its own, it has performed well and is proving to be resilient and in favour, albeit that it is costing us to attract and retain tenants Users are getting more sophisticated which is creating demand for modern logistics facilities which is feeding the development pipeline and the emergence of the asset class The renewal success rate is much improved from 63.5% to 78.5% with growth in rentals on renewal from 0.5% to 2.3% Vacancies are significantly improved from 6.0% with the Paul Smit Anderbolt property being the only large vacancy remaining The portfolio is diverse with an emphasis on warehousing and distribution and a reduction in the manufacturing component Emergence of online retail in SA is real with many tenants playing in this space Durban and Cape Town, with their access to the ports and limited supply of land, are performing well with vacancies virtually non existent and with real demand and growth Owning land is critical and we continue to convert the dirt with the majority of developments pre-let The environment will, no doubt, get tougher but the portfolio is well positioned with conservative rentals and values and as such we expect to continue to extract value Arrears as a % of collectables improved slightly from 6.8% to 6.5% 30

31 Sustainability focus across all 3 sectors Total of 234 kilolitres of water saved in FY kwp installed solar capacity Via our innovative Green Leases we have shared more than R40m in utilities cost savings, 50/50 with our clients since August 2013 Greenovate Awards launched in 2015 which introduces university students to green building thinking and recognises excellence in application In the process of submitting our commitment to Scientific Based Targets for carbon emissions Continued focus on waste data gathering and piloting of a waste to compost project 31

32 NET PROPERTY INCOME ANALYSIS FY17 Rm FY16 (1) Rm INCREASE/ DECREASE Gross property revenue % Retail % Office % Industrial % Property expenses (1 901) (1 864) 2.0% Retail (792) (814) (2.7%) Office (819) (790) 3.7% Industrial (290) (260) 11.5% Net property income % Adjustments (1 143) (897) Acquisitions and developments (662) (431) Trading Profit and Development Fees (91) - Disposals (126) (211) Investec rent (264) (255) Adjusted like-for-like net property income % Retail % Office % Industrial % 1. From 1 July 2016, Growthpoint Business Park was reclassified from an office building to an industrial building. The comparatives have been restated to reflect this adjustment. 32

33 PORTFOLIO UPDATE V&A WATERFRONT V&A Waterfront, Cape Town

34 V&A WATERFRONT Highlights Silo & Canal Districts c m² of mixed use space committed and let in Silo District P grade office offering includes blue chip tenants such as PwC, EY, Werksmans and British American Tobacco The Silo Hotel above the museum opened on time No 3 Silo residential units sold at an average price of R83 000/m² with one penthouse remaining of the 79 units Marine Cruise terminal improved passenger processing with the turnaround of passengers and 41 vessels Workshop17 Continued expansion of Workshop17 with 350 members and 85 businesses Sustainability Leading in the sustainability space: - 6 Star green rating for No 5 Silo building - 16% of total energy consumption (kwh) saved since Solar panels generated 1.58 MWh energy in % reduction in water consumption since % of total waste collected in 2016 was diverted from landfill - First district cooling plant in South Africa utilising sea water 34

35 Net property income Vacancy (%) In force leases Average gross rental (per m²/month) (R) Average in force escalations (%) Weighted average lease period (years) Renewals Total letting success rate (%) Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Arrears Arrears (Rm) Provision for bad debts (B/S) (Rm) Bad Debts (I/S) (Rm) FY Property fundamentals Strong demand for office and retail space continues Vacancies across sectors remain very low - Office 0.8% - Retail 0.0% - Residential 8.0% Tenants electing to stay at the V&A - growth in tenant retention from 82.3% FY16 with strong renewal growth Stabilised residential portfolio of 259 units Footfall of 24m visitors Retail sales growth of 3% and trading density growth of 2%, both coming off a high base, with international tourists up 35% year on year, but with a reduction in spending power impacted by a stronger rand The V&A hotels trade on average 63% higher in revenue per available room than the Cape Town city hotels across the 3 star to 5 star market 35

36 Development activity Silo Precinct Zeitz MOCAA officially opening 22 September room Radisson Red hotel opens in September 2017 Canal Precinct c m² Canal District development includes: - The Battery Park, bay parkade with 3 acres of public green space with expected completion early Dock Road Junction with smaller office and retail pockets creating strong leisure and street culture due for completion in c m² earmarked for further office, residential for sale and to let, as well as other uses Cruise terminal The second phase of the cruise terminal development includes extended office & retail space Masterplan update The Granger Bay District masterplan submitted to The City for approval includes application for land reclamation and further enhancement of the protection of the coast Awaiting the City adjudication on the Foreshore Freeway Project 36

37 PORTFOLIO UPDATE GOZ 5 Murray Rose Ave, Sydney Olympic Park, NSW, Australia

38 Shareholder Return GOZ A year of growth in assets, profit and shareholder returns 4.9% increase in dividend per share to 21.5 cps 6.3% total shareholder return vs. -5.6% S&P/ASX 300 A-REIT index 10.3% increase in net tangible asset per share to AUD2.88 Property fundamentals Further cap rate compression driven by limited supply, strong demand and low interest rates, all coupled with global money seeking investment opportunities in the direct property market Significant disparity in economic outcomes by State - growth centred on Australia's Eastern seaboard (89% of GOZ portfolio) m² of space let (c. 9% of portfolio) 99% occupancy with low upcoming lease expiries 38

39 Guidance Guidance for FY18 dividend growth of 2.3% to 22.0 cps Capital management Gearing reduced to 39.0% from 43.1% at FY16 following strategic asset sales Good access to funding remains: AUD208m raised in March 2017 via the US Private Placement (USPP) market. The issue was more than 4x oversubscribed with an average interest rate of 5.34% and a tenor of 10.8 years, extending GOZ s debt maturity profile to 5 years All in cost of debt slightly higher at 4.3% vs. 4.1% at FY16 75% of debt fixed vs. 65% at FY16 with a weighted average fixed debt maturity of 6.4 years AUD1.3bn drawn debt AUD245.7m new equity issued - AUD139.8 (GMF acquisition) - AUD105.9 (DRIP) 39

40 PORTFOLIO UPDATE GLOBALWORTH Globalworth Tower, Bucharest, Romania

41 Transaction GWI Acquired 24.3m shares for EUR186.4m Funded by EUR100m loans and EUR86.4m CCIRS 4.2 years weighted average term of debt EUR base interest rates are fixed for a weighted average term of 9.9 years Transaction funded at a weighted average interest rate of 2.62% Initial acquisition yield of 6% expected to grow significantly over the next 3-5 years based on the following: - Filling of vacancies, from 20% on acquisition, to 8% where they are expected to stabilise - Accretive c. EUR100m development pipeline at yields of 7% to 9% - Refinancing of c. EUR400m of existing debt, through EUR550m Eurobond, from 5% to 3% with a BB+ rating from S&P and Ba2 rating from Moody s - Capital injection and surplus debt proceeds to fund acquisitions of stabilised assets at yields of 7% to 8% in Romania and the broader CEE region 41

42 Portfolio Activity Completed 3 acquisitions m² development property for Groupe Renault Romania headquarters m² Building C Green Court let to global corporates including General Motors, ABB and Merck m² Dacia (Renault Group) Distribution facility Concluded significant leasing with global corporates New developments are on track and management has been able to secure pre-leases Surpassed Growthpoint s due diligence expectations and delivered on distribution guidance Delivered EUR0.22 dividend per share EUR0.22 dividend per share expected for HY18 42

43 PROPERTY INVESTMENT & DEVELOPMENT Brooklyn Mall, Brooklyn, Pretoria

44 Acquisitions PROPERTY INVESTMENT & DEVELOPMENT South Africa R1.9bn V&A Waterfront (50%) - GOZ R5.0bn Development & capex Disposals South Africa R2.1bn South Africa R2.0bn V&A Waterfront (50%) R557m V&A Waterfront (50%) R113.0m GOZ R473m GOZ R1.7bn Trading Profits & Development Fees R91m Commitments South Africa V&A Waterfront (50%) GOZ R3.1bn R220m R151m 44

45 CONCLUSION Deloitte, La Lucia Ridge, Durban

46 South Africa V&A Waterfront PROSPECTS Healthy and strong core market supplemented by tourism; as such we expect good growth and demand with retail tempered by a strong ZAR c m² bulk remaining with a good development pipeline and exploring ways to acquire additional bulk Weakening property fundamentals Economic growth prospects insufficient to repair lacklustre property fundamentals Potential debt downgrade Impact of competition in the retail portfolio Continued pressure on the office portfolio Increased cost of retaining tenants and attracting new ones Continue to look for opportunities to grow internationally Capital raise for Africa Fund has yielded mixed results with the first close targeted for Q Capital raise for the Healthcare Fund to commence Q with institutional investment expected H Exploring the optimum mechanism to dispose c. 5% of the RSA portfolio 46

47 GOZ GWI Romania is performing well with the highest European GDP growth rate, which is expected to grow at +6% for 2017 Strong demand from global corporates for office space EU funding of EUR43bn approved for and expected to flow into the country Romanian cap rates higher than other prime markets in CEE but expect further cap rate compression as the property market continues to evolve Exploring opportunities in the CEE region for both office and industrial asset acquisitions Continue to pursue opportunities for growth in the office segment in Sydney and Melbourne as a result of declining vacancies, growing population, significant infrastructure spending and Gross State GDP growth in NSW and Victoria Deterioration in Western Australia property fundamentals is creating opportunities Offshore demand is creating opportunities for further asset sales Considering further M&A opportunities Taking advantage of development opportunities Dividend withholding tax expected to be higher Recent ZAR weakness will be beneficial should it persist 47

48 Dividend guidance Dividend growth for FY18 should be similar to that achieved for FY17 48

49 THANK YOU Hilltop Industrial Park, Elandsfontein

50 ANNEXURES Growthpoint Industrial Estate, Meadowdale, Germiston

51 ANNEXURE CONTENTS 01 Portfolio overview 09 Fixed interest rate expiry profile RSA 02 Property investment activities 10 Wealth created and distributed to stakeholders 03 Expense to income ratios (IFRS) 11 Shares issued and beneficial shareholders holding > 2% at FY17 04 Expense to income ratios (gross) 12 Key performance indicators RSA 05 RSA diversified borrowings nominal value 13 Portfolio overview RSA (excl. V&A) 06 Loan to value and interest cover ratios 14 Split of RSA property portfolio 07 Loan exposure per financier RSA 15 Acquisitions RSA 08 Debt expiry profile per financier RSA 16 Disposals RSA 51

52 ANNEXURE CONTENTS 17 Developments & capital expenditure RSA 25 V&A Waterfront portfolio overview (50%) 18 Commitments RSA 26 Split of V&A Waterfront property portfolio 19 Non-current assets held for sale RSA 27 Developments & commitments V&A Waterfront (50%) 20 Retail overview RSA 28 Net property & distributable income analysis V&A Waterfront (50%) 21 Office overview RSA 29 V&A Waterfront overview 22 Industrial overview RSA 30 GLA & vacancy reconciliation V&A Waterfront (50%) 23 GLA & vacancy reconciliation RSA 31 Key performance indicators GOZ 24 Key performance indicators V&A Waterfront 32 GOZ portfolio overview 52

53 ANNEXURE CONTENTS 33 Split of GOZ property portfolio 34 Acquisitions & disposals GOZ 35 Developments, commitments & non-current assets held for sale GOZ 36 Net property income analysis GOZ 37 GOZ overview 38 GLA & vacancy reconciliation GOZ 53

54 ANNEXURE 01: PORTFOLIO OVERVIEW RETAIL OFFICE INDUSTRIAL RSA TOTAL GOZ (1) (3) V&A (1) Number of properties GLA (m²) Vacancy (m²) Vacancy (%) Valuation (Rm) Value per m² (excl. bulk) Average gross rental (per m²/month) (R) AUD237 (2) 231 Avrage annualised yield (%) Average in force escalations (%) Weighted average lease period (years) Renewal success rate (%) Weighted average renewal lease period (years) Weighted average renewal growth (%) 3.2 (1.8) (7.7) 7.9 Weighted average future escalations on renewals (%) Total letting success rate (%) V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%. 2. Based on net rental per annum. 3. Measurements and ratios are based on income and not GLA (when compared to RSA). 54

55 ANNEXURE 02: PROPERTY INVESTMENT ACTIVITIES ANNEXURES RETAIL Rm OFFICE Rm INDUSTRIAL Rm RSA TOTAL Rm GOZ (1) Rm TOTAL Rm V&A (1) Rm Opening balance 1 July 2016 (²) Purchase price of acquisitions 15, Selling price of disposals 16,34 (607) (1 131) (223) (1 961) (1 730) (3 691) (113) (3) Developments and capex 17,27, Fair value adjustment Foreign currency translation (3 040) (3 040) - Total Long-term property assets Classified as held for sale 19, Commitments 18,27, V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%. 2. From 1 July 2016, Growthpoint Business Park was reclassified from an office building to an industrial building. The comparatives have been restated to reflect this adjustment. 3. Disposal relates to the sale of 50% of the portion of Waterway House that is occupied by BAT, to Atterbury. 55

56 ANNEXURE 03: EXPENSE TO INCOME RATIOS (IFRS) SOUTH AFRICA V&A WATERFRONT 27.8% 27.2% 27.1% 30.7% 30.8% 31.4% 16.0% 16.8% 17.8% GOZ 3.8% 2.7% 3.6% 2.9% 3.1% 3.3% 24.0% 24.5% 23.5% 27.8% 27.7% 28.1% 4.4% 4.8% 4.8% 11.6% 12.0% 13.0% FY15 FY16 FY17 Operating Expense Ratio Property Expense Ratio FY15 FY16 FY17 Operating Expense Ratio Property Expense Ratio FY15 FY16 FY17 Operating Expense Ratio Property Expense Ratio 56

57 ANNEXURE 04: EXPENSE TO INCOME RATIOS (GROSS)* SOUTH AFRICA V&A WATERFRONT 38.2% 38.5% 38.0% 35.9% 36.9% 38.5% 16.9% 17.7% 18.7% GOZ 3.2% 2.3% 3.0% 2.7% 2.9% 3.0% 35.0% 36.2% 35.0% 33.2% 34.0% 35.6% 4.3% 4.7% 4.8% 12.6% 13.0% 13.9% FY15 FY16 FY17 Operating Expense Ratio Property Expense Ratio FY15 FY16 FY17 Operating Expense Ratio Property Expense Ratio FY15 FY16 FY17 Operating Expense Ratio Property Expense Ratio * This ratio is presented where expense recoveries have been reclassified as revenue as per SA Reit Association Best Practice guidance. 57

58 ANNEXURE 05: RSA DIVERSIFIED BORROWINGS NOMINAL VALUE R25 444m R24 653m R29 288m 400 Debt capital market 12.0% Unsecured 29.6% Debt capital market 14.9% Unsecured 32.3% Debt capital market 24.7% Unsecured 42.6% Traditional bank debt 88.0% Traditional Traditional bank debt bank debt Secured 75.3% 85.1% Secured % % Secured 57.4% FY15 FY16(1) FY17 (1) Secured bank debt Secured institutional financier Unsecured bank debt and institutional financier Corporate bonds Commercial paper 1. The total value excludes the deferred payments of R85m (FY16: R165m) on the Samrand land purchased. The outstanding payment is due in Sept

59 ANNEXURE 06: LOAN TO VALUE AND INTEREST COVER RATIOS SOUTH AFRICA GOZ (2) GROUP 40% 30% 32.1% 30.5% 33.4% % 30% 36.8% 42.0% 39.4% % 30% 33.2% 33.7% 35.0% % 3 20% 3 20% 3 10% % 3.4x 3.2x 3.4x 3.7x 3.8x 3.9x 3.4x 3.3x 3.5x % 2 1 0% FY15 FY16 FY17 0 0% FY15 FY16 FY17 0 0% FY15 FY16 FY17 0 LTV (1) Interest cover ratio (incl V&A) LTV (1) (1) Interest cover ratio LTV Interest cover ratio 1. Nominal value of interest-bearing borrowings (net of cash), divided by the fair value of property assets, including investment property held for sale. For RSA and group the 50% equity investment in V&A Waterfront and other equity-accounted and listed investments were included in the fair value of property assets. 2. Calculated in Rands. 59

60 ANNEXURE 07: LOAN EXPOSURE PER FINANCIER RSA China Construction Bank ABSA Investec 2% 2%1% 25% JSE (Corporate Bonds) LibFin 5% OMSFIN 5% 22% Nedbank Standard Bank 17% 21% RMB 60

61 ANNEXURE 08: DEBT EXPIRY PROFILE PER FINANCIER RSA 25% 15% 18% 23% 16% 16% 3% 9% 20% 15% 10% 5% 0% FY18 FY19 FY20 FY21 FY22 FY23 FY24 ABSA China Construction Investec JSE (Corporate Bonds) LibFin Nedbank Omsfin RMB Standard Bank 61

62 ANNEXURE 09: FIXED INTEREST RATE EXPIRY PROFILE RSA 25% 14% 9% 9% 11% 21% 17% 3% 6% 3% 0% 2% 2% 3% 20% 15% 10% 5% 0% Floating FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 62

63 ANNEXURE 10: WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS* Rm R8 060m % % R10 216m R10 842m % % % % % % % % % % % % % % % % FY15 FY16 FY17 Employees Shareholders Minority interest holders Providers of debt Governments - direct taxes Reinvested in the group * Wealth created based on a look-through principle and therefore includes RSA, GOZ and V&A Waterfront. 63

64 ANNEXURE 11: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY17 SHARES Opening balance 1 July Dividend reinvestment (September 2016) Dividend reinvestment (March 2017) Closing balance 30 June Treasury shares held for staff share scheme ( ) Shares in issue (net of treasury shares) % HOLDING SHARES HELD Government Employees Pension Fund Stanlib Asset Management Ltd Southern Palace Properties Pty Ltd Investec Asset Management (Pty) Ltd Old Mutual Group Prudential Portfolio Managers The Vanguard Group Sesfikile Capital Coronation Fund Managers Ltd BEE Consortium Momentum Asset Management Sanlam Investment Management Meago Asset Managers Blackrock Institutional Trust Company Total shareholders holding >2% Other Total Foreign shareholding: 28% of institutional ownership and 22% of total shares issued 64

65 ANNEXURE 12: KEY PERFORMANCE INDICATORS RSA FY17 FY16 Vacancies (%) Total arrears (Rm) Provision for bad debts (B/S) (Rm) Bad debts (I/S) (Rm) Average in force escalations (%) Renewal success rate (%) Total letting success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Number of employees Net property income per employee (R) The Towers, Sandton 65

66 ANNEXURE 13: PORTFOLIO OVERVIEW RSA (EXCL.V&A) NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE R4 479m R5 725m R6 178m R71 550m R73 752m R76 906m 16.6% 17.2% 48.6% 48.6% 49.5% 14.6% 15.3% 16.4% 19.9% 46.0% 45.5% 46.0% 45.1% 45.2% 47.3% 39.1% 39.0% 38.6% 32.8% 37.4% 37.3% 12.3% 12.4% 11.9% 39.4% 39.6% 38.4% FY15 FY16 FY17 Retail Office Industrial FY15 FY16 FY17 Retail Office Industrial FY15 FY16 FY17 Retail Office Industrial 66

67 ANNEXURE 14: SPLIT OF RSA PROPERTY PORTFOLIO VALUE GLA VALUE GLA 39% 16% 45% 42% 32% 10% 7% 22% 4% 2% 1% 54% 11% 21% 5% 3% 1% 1% 58% 26% Office Retail Industrial Greater JHB Western Cape Kwazulu-Natal Pretoria Eastern Cape North West Other 67

68 ANNEXURE 15: ACQUISITIONS RSA Acquisitions SECTOR DATE PURCHASE PRICE Rm Gateway Private Hospital, Umhlanga Ridge, Durban Healthcare Fund (1) November % Hillcrest Private Hospital, Assagay, Durban Healthcare Fund (1) November % Louis Leipoldt Hospital, Bellville, Cape Town Healthcare Fund (1) February % Site B, Foreshore, Cape Town Office March Land Remaining 50% of 144 Oxford Road, Rosebank Office March Land Ncondo Place, Umhlanga Ridge, Durban Office March Land Draper on Main, Claremont, Cape Town Office August % 31 Impala Road, Chislehurston, Sandton Office December % 29 Richefont, Umhlanga Ridge, Durban Office September Land 28 Sacks Circle, Bellville, Cape Town Industrial May % Remaining 30% of Wadeville, Germiston Industrial July Land Total YIELD 1. Properties acquired for Healthcare Fund and currently included in the office portfolio. 68

69 ANNEXURE 16: DISPOSALS RSA Disposals SECTOR DATE SELLING PRICE Rm PROFIT/(LOSS) ON COST Rm PROFIT/(LOSS) ON BOOK VALUE Rm Picbel Parkade, CBD, Cape Town Retail March (0.4) 10.1% Vaal Mall %, Vanderbijlpark Retail April (1.0) (0.5) 7.4% Grayston Shopping Centre, Kramerville, Sandton Retail May % Harrowdene Office Park, Woodmead, Johannesburg Office March (27.7) 2.7% 16 Fricker Road, Illovo, Sandton Office May % 61 Central, Houghton, Johannesburg Office February % Thebe House, Rosebank, Johannesburg Office June % Bremerton Office Park, Newton Park, Port Elizabeth Office December (4.6) (3.0) 9.8% 295 Florida Road, Morningside, Durban Office November % Woodstock, Woodstock, Cape Town Office October % Redwood, Roodekop, Alberton Industrial December % Kya Sands, Kya Sands, Randburg Industrial April (0.3) 9.4% Laser Isipingo, Isipingo, Durban Industrial November % Osram, Randjiespark, Midrand Industrial August % Metro Cash & Carry Krugersdorp, Krugersdorp Industrial December (1.7) (0.2) 5.3% Snowy Owl, Arcadia, Pretoria Industrial January (3.1) % Erf 321 Wadeville, Wadeville, Germiston Industrial March % Portland, Wadeville, Germiston Industrial June % Total YIELD 69

70 ANNEXURE 17: DEVELOPMENTS & CAPITAL EXPENDITURE RSA SECTOR ESTIMATED COMPLETION DATE Developments and Capital Expenditure (1) Greenacres, Greenacres, Port Elizabeth Retail July Vaal Mall (66.6%), Vanderbijlpark, Johannesburg Retail December Hillcrest Corner (50%), Hillcrest, Durban Retail June KeyWest Shopping Centre, Krugersdorp, Johannesburg Retail November Other, below R30m Retail Total Retail Discovery Head Office (55%), Sandhurst, Sandton Office November Lakeside 1, Centurion, Pretoria Office April Anslow Phase 2, Bryanston, Sandton Office July Other, below R30m Office Total Office Samrand Development, Midrand Industrial July M1 Place, Eastgate, Sandton Industrial November Growthpoint Industrial Estate, Erf 307, Meadowdale, Germiston Industrial Dec Saligna, Boksburg Industrial July Montague Business Park (25%), Montague Gardens, Cape Town Industrial 39.0 Other, below R30m Industrial Total Industrial Total Development Expenditure Capital Expenditure FY17 Rm 1. The average yield for developments is 8.0% - 9.0% on a fully let basis. 70

71 ANNEXURE 18: COMMITMENTS RSA Commitments SECTOR ESTIMATED COMPLETION DATE Developments (1) River Square Shopping Centre, Three Rivers, Vereeniging Retail November Oxford Road, Rosebank Office October Exxaro Head Office and AECOM, Centurion Office May Discovery Head Office (55%), Sandhurst, Sandton Office April Draper on Main, Cape Town Office March Boulevard, Umhlanga Ridge, Umhlanga Rocks, Durban Office April on Kloof, Cape Town Office June Bakers Transport, Samrand, Midrand Industrial February Fast & Furious, Growthpoint Industrial Estate, Meadowdale, Germiston Industrial January Other below R30,0m Various Various 94.8 Acquisitions Remaining 58% of N1 City Mall Goodwood, Cape Town Retail November Exxaro Corporate Centre & Vacant land, Pretoria (2) Office FY17 Rm Total The average yield for developments is 8.0% - 9.0% on a fully let basis. 2. Property acquired for Trading and Development purposes. The transaction is subject to Competition Commission approval and as such estimated completion date is unknown. 71

72 ANNEXURE 19: NON-CURRENT ASSETS HELD FOR SALE RSA Properties Held For Sale SECTOR FY17 Rm OK Empangeni, Empangeni, Durban Retail Whitworth, Heriotdale ext 8, Johannesburg Industrial 16.0 Greenhills Centre, Elandsfontein, Germiston Industrial 13.4 Total RSA

73 ANNEXURE 20: RETAIL OVERVIEW RSA TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m² Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria Festival Mall, Kempton Park, Johannesburg Geenacres, Greenacres, Port Elizabeth Waterfall Mall, Rustenburg Lakeside Mall, Benoni, Johannesburg Vaal Mall (66.6%), Vanderbijlpark, Johannesburg La Lucia Mall, La Lucia, Durban Kolonnade (50%), Montana Park, Pretoria Bayside Mall, Table View, Cape Town The Constantia Village, Constantia, Cape Town Sub Total Balance of the sector Total for the sector Vacant Monthly By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond Ranked in terms of gross monthly rental. LEASE EXPIRY (% OF GLA) GLA (1) TOP 10 TENANTS m² Edcon Holdings Ltd The Foschini Group Ltd Shoprite Holdings Ltd Pepkor Holdings Ltd Pick n Pay Stores Ltd Mr Price Group Ltd Truworths International Ltd Massmart Holdings Ltd Woolworths Holdings Ltd Clicks Group Ltd Sub Total Balance of the sector Total for the sector (excluding vacancies) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) Vacant Monthly By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond

74 ANNEXURE 21: OFFICE OVERVIEW RSA TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m² Investec, 100 Grayston Drive, Sandton, Johannesburg The Woodlands, Woodmead, Johannesburg Constantia Office Park, Roodepoort, Johannesburg Inanda Greens, Wierda Valley, Sandton, Johannesburg The Place, Sandton, Johannesburg MontClare Place, Claremont, Cape Town Inyanda 1,3 and 4, Parktown North, Johannesburg Country Club Estate, Woodmead, Johannesburg Golf Park, Bellville, Cape Town The Towers (50%), Sandton, Johannesburg Sub Total Balance of the sector Total for the sector GLA (1) TOP 10 TENANTS m² Investec Bank Ltd Deloitte (South Africa) Absa Bank Ltd Transnet Business Connexion (Pty) Ltd Anglogold Ashanti Ltd EOH Holdings Ltd Firstrand Bank Ltd Edward Nathan Sonnenbergs Inc Nestle South Africa (Pty) Ltd Sub Total Balance of the sector Total for the sector (excluding vacancies) Vacant Monthly By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond LEASE EXPIRY (% OF GLA) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) Vacant Monthly By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond Ranked in terms of gross monthly rental. 74

75 ANNEXURE 22: INDUSTRIAL OVERVIEW RSA TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m² Growthpoint Business Park, Midrand Montague Business Park (25%), Montague Gardens, Cape Town Hilltop Industrial Estate, Elandsfontein, Johannesburg Isobar, Isando, Kempton Park, Johannesburg Central Park, Cape Town, Elsiesrivier, Cape Town Adcock Ingram, Midrand Omni Park, Aeroton, Johannesburg Rivonia Crossing 2, Sunninghill, Sandton N1 Business Park (20%), Midrand Greenfield Industrial Park, Airport Industrial, Cape Town Sub Total Balance of the sector Total for the sector Vacant Monthly By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond Ranked in terms of gross monthly rental. LEASE EXPIRY (% OF GLA) GLA (1) TOP 10 TENANTS m² The Bidvest Group Ltd Adcock Ingram Holdings Ltd Scania SA (Pty) Ltd Consolidated Steel Industries (Pty) Ltd Allied Electronic Corporation Ltd Distell Ltd Pioneer Foods Ltd Barloworld Ltd Continuity SA (Pty) Ltd DCD Group (Pty) Ltd Sub Total Balance of the sector Total for the sector (excluding vacancies) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) Vacant Monthly By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond

76 ANNEXURE 23: GLA & VACANCY RECONCILIATION RSA TOTAL GLA m² VACANT AREA m² VACANCY % Balance as at 1 July GLA adjustments (61 235) (59 776) Disposals ( ) (2 111) Acquisitions Developments and extensions Leases expired in the period (1) Renewals of expired leases (2) ( ) New letting of vacant space ( ) Leases terminated Balance as at 30 June % of opening balance GLA expired during the half year under review compared to 22.6% for FY Retention of 73.6% compared to 68.7% for FY16. 76

77 ANNEXURE 24: KEY PERFORMANCE INDICATORS V&A WATERFRONT (50%) FY17 FY16 Vacancies (%) Total arrears (Rm) Provision for bad debts (B/S) (Rm) Bad debts (I/S) (Rm) Average in force escalations (%) Renewal success rate (%) Total letting success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Number of employees (100%) Net property income per employee (R) V&A Waterfront, Cape Town 77

78 ANNEXURE 25: V&A WATERFRONT PORTFOLIO OVERVIEW (50%) NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE R399m R462m R522m R6 761m R7 766m R8 705m 17.6% 9.5% 18.4% 8.9% 18.6% 19.0% 9.6% 21.8% 7.5% 11.6% 6.1% 6.4% 11.4% 5.8% 23.8% 5.7% 12.5% 6.8% 24.5% 21.6% 20.9% 51.3% 54.1% 49.6% 53.9% 52.6% 50.5% FY15 FY16 FY17 Retail Office Fishing & Industrial Hotel & Residential FY15 FY16 FY17 Retail Office Fishing & Industrial Hotel & Residential Bulk 78

79 ANNEXURE 26: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO PROPERTY PORTFOLIO BY VALUE PROPERTY PORTFOLIO BY GLA NET PROPERTY INCOME DEVELOPED VS. UNDEVELOPED BY VALUE 12% 6% 24% 22% 19% 6% 7% 51% 9% 50% 24% 26% 28% 22% 94% Retail Office Fishing & Industrial Hotel & Residential Bulk Developed Undeveloped 79

80 ANNEXURE 27: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%) Developments and capital expenditure (1) SECTOR ESTIMATED COMPLETION DATE Waterway House (EY & Ferrari) Office & Retail May Grain Silo - Zeitz MOCAA and The Silo Hotel Museum & Hotel September Battery Park Parkade April No 6 Silo - Radisson Red Hotel Hotel September Other below R30m Various Various Total FY17 Rm Commitments Battery Park Parking April Dock Road Junction Office September Other below R30m Various Various 92.6 Total The average yield for developments is 7.0% - 9.0% on a fully let basis. 80

81 ANNEXURE 28: NET PROPERTY & DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%) FY17 Rm FY16 Rm INCREASE/ (DECREASE) Gross property revenue % Property expenses (204) (177) 15.3% Net property income % Other operating expenses Net finance costs Other non-distributable amounts (24) (20) 20.0% (18) (11) 63.6% (1) (2) (50.0%) Distributable income % Adjustments (19) - Silo No 5 PwC & Werksmans Waterway House EY & Ferrari (11) - (8) - Adjusted like-for-like distributable income % 81

82 ANNEXURE 29: V&A WATERFRONT OVERVIEW TOP 10 TENANTS (100%) GLA (1) m² Allan Gray (Pty) Ltd Nedbank Group Ltd Legacy Hotels Edcon Holdings Ltd Vacant By FY18 By FY19 By FY20 By FY21 LEASE EXPIRY (% OF GLA) Tourvest Holdings Ltd Sun International Hotels Newmark Hotels By FY22 11 FY23 and beyond 53 LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) Woolworths Holdings Ltd The Foschini Group Ltd National Department of Public Works Subtotal Balance of V&A Total for V&A Waterfront (excluding vacancies) (100%) Vacant By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond Ranked in terms of gross monthly rental. 82

83 ANNEXURE 30: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%) TOTAL GLA m 2 VACANT AREA m 2 VACANCY % Balance as at 1 July % GLA adjustments - - Developments and extensions Leases expired in the period (1) Renewals of expired leases (2) (79 735) New letting of vacant space (18 694) Leases terminated 282 Balance as at 30 June % % of opening balance GLA expired during the year under review compared to 10.1% for FY Retention of 98.2% compared to 82.3% for FY16. 83

84 ANNEXURE 31: KEY PERFORMANCE INDICATORS GOZ FY17 FY16 Vacancies (%) (1) Total arrears (Rm) Provision for bad debts (B/S) (Rm) - - Renewal success rate (%) Total letting success rate (%) Weighted average renewal growth (%) (7.7) (0.5) Weighted average future escalations on renewals (%) (2) Number of employees Net property income per employee (R) Measurements and ratios are based on income and not GLA (when compared to RSA). 2. Weighted average escalation on entire portfolio WARR 3.3%. Green Square Close, Fortitude Valley, QLD, Australia 84

85 ANNEXURE 32: GOZ PORTFOLIO OVERVIEW NUMBER OF PROPERTIES NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE NUMBER OF PROPERTIES R1 631m R1 913m R2 293m R22 024m R30 938m R32 536m AUD ZAR 10.8 AUD ZAR % % % 48.5% 38.7% % % % % 55.9% 34.0% % FY15 FY16 FY FY15 FY16 FY17 FY15 FY16 FY17 Office Industrial average exchange rate Office Industrial closing exchange rate Office Industrial 85

86 ANNEXURE 33: SPLIT OF GOZ PROPERTY PORTFOLIO VALUE (AUD) GLA VALUE GLA 34% 28% 5% 6% 5% 1% 29% 12% 8% 2%1% 45% 66% 72% 26% 14% 28% 18% Office Industrial Victoria Queensland New South Wales South Australia ACT Western Australia Tasmania 86

87 ANNEXURE 34: ACQUISITIONS & DISPOSALS GOZ Acquisitions SECTOR 15 Green Square Close, Fortitude Valley, Queensland Office October Murray Rose Avenue, Sydney Olympic Park, New South Wales Office October Murray Rose Avenue, Sydney Olympic Park, New South Wales Office October Vantage, 109 Burwood Road, Hawthorn, Victoria Office October Quad 3, 102 Bennelong Parkway, Sydney Olympic Park, New South Wales Office October Quad 2, 6 Parkview Drive, Sydney Olympic Park, New South Wales Office October Total DATE FY17 Rm FY17 AUDm Disposals 28 Bilston Drive, Wodonga, Victoria Industrial December and William Angliss Drive, Laverton North, Victoria Industrial December Robinsons Road, Ravenhall, Victoria Industrial December Fitzgerald Road, Derrimut, Victoria Industrial December Mcarthur Avenue, Pinkenba, Queensland Industrial September Business Street, Yatala, Queensland Industrial March Gassman Drive, Yatala, Queensland Industrial June Total

88 ANNEXURE 35: DEVELOPMENTS, COMMITMENTS & NON-CURRENT ASSETS HELD FOR SALE GOZ Developments and Capital Expenditure SECTOR ESTMATAED COMPLETION DATE Building C, 211 Wellington Road, Mulgrave, Victoria Office October Other Various Total FY17 Rm FY17 AUDm Commitments 1 Charles Street, Paramatta, New South Wales Office June Other Various Total Non-Current Assets Held For Sale Sandgate Road, Nundah, Queensland Office Total

89 ANNEXURE 36: NET PROPERTY INCOME ANALYSIS GOZ FY17 AUDm FY16 AUDm Increase / (Decrease) Gross property revenue % Property expenses (38.1) (27.5) 38.5% Net property income % Adjustments (65.7) (25.5) Acquisitions and developments (59.5) (12.2) Disposals (6.2) (13.3) Adjusted like-for-like net property income % Office % Industrial (0.4%) 89

90 ANNEXURE 37: GOZ OVERVIEW FAIR VALUE Rm GLA m² TOP 10 PROPERTIES BY VALUE 1 Charles Street, Parramatta, NSW Office Distribution Street, Larapinta, QLD Industrial Dorcas Street, South Melbourne, VIC Office Colquhoun Road, Perth Airport, WA Industrial Optus Centre, 15 Green Square Close, QLD Office Ann Street, Brisbane, QLD Office Building C, Pacific Highway, Artarmon, NSW Office Sandgate Road, Nundah, QLD Office Murray Rose Avenue, Sydney Olympic Park, NSW Office Murray Rose Avenue, Sydney Olympic Park, NSW Office Sub Total Balance of GOZ TOTAL FOR GOZ GLA (1) TOP 10 TENANTS m² Woolworths NSW Police Department Commonwealth of Australia Linfox GE Capital Finance Australasia (²) Samsung Electronics Lion Energex Australia and New Zealand Banking Group Jacobs Group Sub Total Balance of GOZ TOTAL FOR GOZ (excluding vacancies) Vacant By FY18 By FY19 By FY20 By FY21 By FY22 FY23 and beyond LEASE EXPIRY (% OF INCOME) 1. Ranked in terms of gross monthly rental. 2. Leases to Country Road/ David Jones, with a weighted average lease term commencement of 14.5 years, will replace the existing lease to GE Capital Finance Australasia upon the lease expiry. 90

91 ANNEXURE 38: GLA & VACANCY RECONCILIATION GOZ TOTAL GLA VACANCY (1) m 2 % Balance as at 1 July GLA adjustments (477) Disposals ( ) Acquisitions, developments and extensions Balance as at 30 June Vacancy ratio is based on income and not GLA (when compared to RSA). 91

92 THANK YOU Illovo, Umhlanga Ridge, Durban