GROWTHPOINT PROPERTIES LIMITED INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

Transcription

1 GROWTHPOINT PROPERTIES LIMITED INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2011

2 2 AGENDA Introduction and Highlights Financial Review Operational Overview Acquisitions, Disposals, Developments and Commitments Prospects Annexures Woodmead Retail Park, Woodmead Growthpoint Business Park, Midrand Growthpoint Industrial Estate, Meadowdale, Germiston

3 INTRODUCTION AND HIGHLIGHTS

4 4 INTRODUCTION TO GROWTHPOINT The largest listed property company on the JSE with property assets valued at R50,2 billion Market capitalisation of R31,6 billion at 31 December 2011 (R18.55 per linked unit) Diversified property portfolio comprising 412 properties in RSA, 40 properties in Australia ( GOZ ) which is 61% owned and a 50% interest in the properties of the V&A Waterfront Retail Office Industrial V&A Waterfront Australia Office Industrial R12,2 billion R14,3 billion R7,2 billion R4,8 billion R11,7 billion AUD 1,43 billion Fully integrated internally managed property company employing 446 staff

5 5 HIGHLIGHTS FOR THE PERIOD UNDER REVIEW 10.0% Return to investors for the 6 months (annualised) Income yield 7.4% Capital growth 2.6% Distribution per linked unit 67,8 cents 6.1% growth R469 million additional investment in Growthpoint Properties Australia 43.6% Return on R2,0 billion Australian investment for the 6 months (annualised) Growthpoint s foreign unitholding doubled in the last 2 years Total cost at 31 Dec 2011 R2,0 billion Income yield 11.7% Dec % 233 million units Market value at 31 Dec 2011 R2,8 billion Capital growth 31.9% Dec % 111 million units Overall reduction in vacancies Dec % Jun %

6 6 HIGHLIGHTS FOR THE PERIOD UNDER REVIEW (CONT D) Repayment of CMBS notes R2,0 billion Additional Corporate Bonds raised Equity raised R500 million 4.25 years 145 bps margin 100 million linked units R260 million 5.00 years 150 bps margin R1,8 billion Inclusion in JSE - Socially Responsible Investment Index (SRI) Most empowered property company on JSE 5 th year

7 7 HIGHLIGHTS SUBSEQUENT TO 31 DECEMBER 2011 Additional investment in Growthpoint Properties Australia R1,1 billion participation in rights issue increasing unitholding to 64.5% Corporate bond raised R750 million 3 years 135 bps margin Commercial paper rolled and increased from R300 million to R400 million 3 months 27 bps margin

8 8 GROWTH IN DISTRIBUTION Cents 31 Dec 2011 distribution 106,5 114,6 121,2 131,0

9 9 GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION R bn Unit price (cents) NTAV per unit (cents) Cents

10 FINANCIAL REVIEW

11 11 SIMPLIFIED CONSOLIDATED INCOME STATEMENT Dec 2011 R million Dec 2010 R million Increase Gross property revenue % Property expenses (609) (488) 24.8% Net property income % Other operating expenses (77) (61) 26.2% Net property income after operating expenses % Finance costs (833) (584) 42.6% Finance income % Adjustment for non-controlling interest (83) (28) 196.4% Profit before debenture interest % Distribution for the period % Note: Refer to Annexure 9, 20 and 25 for the simplified income statements of RSA, V&A and GOZ

12 12 CONSOLIDATED INCOME STATEMENT (EXTRACTS) Dec 2011 R million Dec 2010 R million Increase Net property income after operating expenses % RSA % V&A % GOZ % Finance costs (833) (584) 42.6% RSA (643) (452) 42.3% V&A (1) % GOZ (189) (132) 43.2% Finance income % Adjustment for non-controlling interest (83) (28) 196.4% Profit before debenture interest % Distribution for the period % RSA and V&A % GOZ % Note: 50% interest in V&A Waterfront included for 6 months in Dec 2011 (Dec 2010:Nil) Average exchange rate of R7.84/AUD (Dec 2010: R6.72/AUD) for GOZ The number of properties in Australia has grown from 33 properties in Dec 2010 to 40 in Dec 2011

13 EXPENSE TO INCOME RATIOS 13 RSA V&A Property expense ratio (%) Operating expense ratio (%) Property expense ratio (%) Operating expense ratio (%) 30% 25% 27.2% 27.6% 27.6% 2.8% 2.7% 2.5% 33.3% 1.0% 32.0% 0% 20% 15% 10% 5% 24.4% 24.9% 25.1% GOZ 0% Dec 2011 Jun 2011 Dec 2010 Property expense ratio (%) Operating expense ratio (%) 14.9% 14.3% 13.9%

14 14 CONSOLIDATED BALANCE SHEET (EXTRACTS) Dec 2011 R million Jun 2011 R million Dec 2010 R million Jun 2011 Dec 2011 Increase/ (decrease) Property portfolio * % RSA % V&A % GOZ % Borrowings ** (5.8%) RSA (9.1%) GOZ % Linked unitholders interest % RSA % V&A (3) (3) - - GOZ % * Includes R418m of properties reclassified as held for sale (Jun 2011 R539m, Dec 2010 R571m) ** Excludes fair value adjustments

15 PROPERTY PORTFOLIO Annexures RSA Dec 2011 R million V&A Dec 2011 R million GOZ Dec 2011 R million 15 Total Dec 2011 R million Balance at 30 June Acquisitions 3 & Disposals 4 & 23 (416) - (43) (459) Foreign exchange translation Developments and capital expenditure Subtotal Fair value adjustment * Balance at 31 December Long-term property assets Properties held for sale * Fair value adjustment represents 2.3% of investment property portfolio

16 BORROWINGS LOAN TO VALUE AND INTEREST COVER RATIO NET ASSET VALUE & NET TANGIBLE ASSET VALUE 16 RSA % LTV (incl V&A) * Interest cover ratio (incl V&A) times NAV (Per linked unit consolidated) NTAV (Per linked unit consolidated) GOZ % LTV ** Interest cover ratio times * Based on nominal value of interest bearing borrowings and net of cash balances ** Based on GOZ s Syndicated Facility Agreement

17 17 BORROWINGS RSA Dec 2011 R million % of total RSA debt Jun 2011 R million % of total RSA debt Secured debt: % % Bank debt % % Institutional financier % % CMBS % Unsecured debt: % % Bank debt % % Corporate bonds % % Commercial paper % - - Total RSA debt % % GOZ Secured debt: Bank debt 5 044* 4 855* Consolidated debt Note: Refer to Annexure 16 for a breakdown of debt * Includes a cumulative foreign exchange difference of R1,0 billion (30 Jun 2011: R390,0 million)

18 18 BORROWINGS (CONT D) 100 million linked units issued for R1,8 billion, utilised for repayment of R2,0 billion of CMBS notes LTV (SA) decreased from 37.8% at 30 June 2011 to 33.1% at 31 December % of interest rates fixed for a weighted average of 5.6 years Growthpoint currently enjoys the following Moody s ratings, with a stable outlook: Global long-term Baa3 Global short-term P-3 National long-term A-2.za National short-term P-2.za Subsequent to 31 December 2011: Hatfield Gardens, Hatfield, Pretoria R750 million corporate bond issued for 3 years at 135 bps for participation in GOZ rights issue R300 million commercial paper issue rolled for 3 months at Jibar plus 27 bps and upsized to R400m

19 OPERATIONAL OVERVIEW

20 20 PORTFOLIO ANALYSIS Property portfolio by value Property portfolio by GLA Retail 23.3% 24.3% Office Industrial 3.5% 16.4% 17.5% V&A 9.6% GOZ 21.7% 14.3% 28.5% 40.9% Net property income 19.4% 25.1% 6.6% 17.3% 31.6%

21 21 RSA - RETAIL Growth in national retail exceeded expectations in Q4/2011 but likely to weaken in 2012 Vacancy: Dec 2011 % Dec 2010 % Turnover growth at Growthpoint s top centres outperformed national retail sales with double digit growth at Brooklyn, Woodmead and Walmer Park Arrears were impacted negatively by local authorities incorrect billings. Northgate rates back charge of R22 million in December 2011, R18,8 still outstanding from tenants. Growthpoint s share is 50% Vacancy factor deteriorated due to intentional vacancies under development. If excluded, vacancy factor is 2.7% Extensions and redevelopment projects in progress: Brooklyn Mall R201 million Waterfall Mall R150 million OK Empangeni R40 million Total portfolio vacancy Top 10 centre vacancy Balance of portfolio Arrears: R million R million Total 26,4 17,7 Bad debt provision 4,9 5,1 Renewals: % % Renewal success rate Renewal growth Booklyn Mall, Pretoria

22 22 RSA - OFFICE Moderate economic activity continues to put pressure on vacancies and rentals Vacancy: Dec 2011 % Dec 2010 % Drop in vacancies in all regions has been achieved through focussed letting strategies and improved broker relationships. New lets of m² in the last six months, reducing office vacancy percentage to 6.7% Renewed m² of leases, improving the renewal rate to 72.6%. Renewal rentals under pressure with market reducing asking rentals and increasing tenant incentives Total portfolio Arrears: R million R million Total 14,1 12,0 Bad debt provision 5,8 5,9 Renewals: % % Renewal success rate Renewal growth (4.4) 5.3 Developments in progress at Grosvenor, Mayfair on the Lake and Menlyn Corner, which will increase GLA by m² by the end of 2012 Expect the remainder of the year to be challenging. Vacancy levels are not expected to change significantly Constantia Office Park, Roodepoort

23 23 RSA - INDUSTRIAL Trading conditions have improved. Expected to remain stable during 2012 Market sentiment, specifically manufacturing and factory output data remaining cautious Continued demand for large warehousing and distribution facilities Mini and Midi Units, Light Manufacturing still marginal and showing slowest recovery Vacancies have reduced substantially will be difficult to maintain at these levels Positive rental growth, favourable escalations increasing lease periods (>3 yrs) and Utilities management and occupancy cost remain an area of concern Short term view: Sector has stabilised Marginal growth New development activity increasing Many redevelopment opportunities Vacancy: Dec 2011 % Dec 2010 % Portfolio Arrears: R million R million Total 8,8 11,4 Bad debt provision 4,6 6,0 Renewals: % % Renewal success rate Renewal growth Adcock Ingram, Midrand

24 24 V&A WATERFRONT Net property income Property portfolio by value 8.0% 12.1% 12.8% 13.2% 24.4% 55.5% Retail 5.8% 14.8% 53.4% Office Fishing & Industrial Hotel Bulk

25 25 V&A WATERFRONT (CONT D) RETAIL Turnover growth at the V&A has outperformed the national market and has been particularly strong over the last five months Rental in the Victoria Wharf is in line with our expectations Slow re-letting of refurbished Clock Tower space is causing slight shortfall to budget Vacancies in the Victoria Wharf are 1.3%, however, retail vacancies in Clock Tower are 3% currently Arrears slightly inflated due to rates arrears following recent rates valuation settlement with City of Cape Town Renewals in luxury wing which fall due in March 2012 are largely agreed and the negative reversion minimised Vacancy: Dec 2011 % Portfolio 2.1 Arrears: R million Total 30,1 Bad debt provision 13,7 Renewals: % Renewal success rate 94.7 Renewal growth 6.9

26 V&A WATERFRONT (CONT D) OFFICE Office rental income marginally below target due to slow re-letting of refurbished Clock Tower Office vacancies at historic high of 6% again reflecting slower letting of refurbished Clock Tower 80% under offer Should this be successfully let it will bring vacancies down to normal 4% level 26 HOTEL Turnover rental negatively impacted by reduced hotel occupancy and average revenue per room INDUSTRIAL Industrial rentals and Marina revenue are strong and marginally ahead of budget

27 27 GROWTHPOINT PROPERTIES AUSTRALIA GOZ Net property income Property portfolio by value 69.3% 30.7% 59.2% 40.8% Office Industrial

28 38-40 Annandale Rd, Tullamarine, VIC 32 Cordelia St, South Brisbane, QLD 28 GROWTHPOINT PROPERTIES AUSTRALIA GOZ (CONT D) HY2012 results in line with guidance Statutory profit: $26.9 million, an 8.2% increase from HY2011 Distributable profit: $24.9 million, a 57.5% increase from HY cps distribution, 3.6% above HY2011 (7.5 cps for GOZN) 9.1% total return for calendar year to 31 December 2011 Capital management Extended average debt maturity profile to 4 years Tranched debt maturities LVR 49.7%; ICR 2.1 times 99% of debt is now hedged Comparative Return & Equity Growth Significantly expanded market capitalisation and free float Outperformed A-REITs and broader market 2 rights offers fully taken-up raising $289 million (including underwriting by GRT) Quality investment property portfolio Outlook & Summary 2.1% rise in property portfolio value due to property valuation increases 100% occupancy 100% tenant retention Diversified by location, sector and tenant Diversified property portfolio valued at over $1.5 billion Quality tenants with WALE of 7.8 years and growing rental Continuation of business model: providing secure, growing returns from rent FY2012 guidance of 17.5 cps for GOZ

29 ACQUISITIONS, DISPOSALS, DEVELOPMENTS AND COMMITMENTS

30 30 ACQUISITIONS, DISPOSALS AND DEVELOPMENTS Retail Office Industrial V&A GOZ Total Purchase price of acquisitions Selling price of disposals Developments and capex Note: Refer to Annexures 3, 4 and 23 for yields on Acquisitions and Disposals In aggregate properties sold at book value however representing a profit on cost of R129m Properties where amounts in excess of R20,0m were spent during the period include: Grenville (industrial) Greenbushes (industrial) Growthpoint Industrial Estate (industrial) OK Empangeni (retail) Adcock Ingram (industrial) R61,2m R39,4m R29,4m R28,7m R28,3m

31 COMMITMENTS 31 RSA Sector R million Commitments for developments Brooklyn/Design Square Retail 134,8 Hatfield Festival Office 237,0 Meerlus Office 73,9 Grosvenor Corner Office 50,7 Ellerines Industrial 54,9 Other below R50,0 million 210,6 TOTAL 761,9 Commitments for acquisitions Alberton City (remaining 64.3%) Retail 417,9 Menlyn Corner Office 208,5 Sandhurst Office Park (33% share) Office 73,0 Other below R50,0 million 10,8 TOTAL 710,2 V&A Allan Gray (Growthpoint s 50% share) Office 259,0 GOZ AUD million Pacific Highway Office 82,2 Energex Office 33,5 TOTAL 115,7

32 PROSPECTS

33 33 PROSPECTS It is expected that growth in distribution per linked unit for the full year will be in line with the growth rate achieved in the 6 months ended 31 December 2011 (This profit forecast has not been reviewed or reported on by Growthpoint s independent external auditors) GOZ and V&A are now major contributors to the overall performance of Growthpoint with between 25% and 30% of total net property income expected to be contributed by these 2 investments R1,05 billion investment in GOZ on 25 January 2012 will be enhancing V&A expected to deliver just over 7.0% return on cost of developed properties (Growthpoint s 50% share = R4.25 billion), in line with due diligence forecast Moderate forecast GDP growth of between 2.5% and 3.0% is insufficient to stimulate strong demand for retail, office and industrial space Overall vacancy factor is unlikely to reduce much below the current 4.0%, with negative rent reversions in the office sector unlikely to change until such time as national office vacancies across all grades start to improve Continued focus on tenant retention, debt collection and credit vetting, letting, cost management and development and redevelopment opportunities

34 34 PROSPECTS More focused and active treasury management through the appointment of a dedicated corporate treasurer Access to liquidity remains good with strong demand for Growthpoint s corporate bonds and equity, as well as a willingness by all the major banks and life companies to provide debt facilities to Growthpoint Significant increases in electricity, rates and taxes and other administered costs at rates well in excess of inflation and contractual annual rental increases, coupled with a deteriorating infrastructure and reduced service levels. The impact of this on the overall cost of occupation and our cost to income ratio remains a major concern

35 THANK YOU

36 ANNEXURES

37 37 CONTENT Annexure 1 Growthpoint s Property Portfolio Annexure 2 Split of RSA Property Portfolio (Excl V&A) Annexure 3 Acquisitions RSA (Excl V&A) Annexure 4 Disposals RSA (Excl V&A) Annexure 5 Non-Current Assets Held for Sale Annexure 6 Top 12 RSA Retail Properties by Value (Excl V&A) Annexure 7 Top 12 RSA Office Properties by Value (Excl V&A) Annexure 8 Top 12 RSA Industrial Properties by Value (Excl V&A) Annexure 9 Simplified Income Statement (Extracts) RSA (Excl V&A) Annexure 10 Net Property Income Analysis RSA (Excl V&A) Annexure 11 GLA and Vacancy Reconciliation RSA (Excl V&A) Annexure 12 Lease Expiry by Sector RSA (% of GLA) Annexure 13 Lease Expiry by Sector RSA (% of Gross Monthly Rental) Annexure 14 Unitholders Holding > 1% at Dec 2011

38 38 CONTENT (CONT D) Annexure 15 Linked Units Issued Annexure 16 Detailed Borrowings Annexure 17 Debt Expiry Profile RSA Annexure 18 Interest Rate Fix Expiry Profile for RSA borrowings Annexure 19 Split of V&A Property Portfolio Annexure 20 Simplified Income Statement (Extracts) V&A Annexure 21 Lease expiry by sector V&A Annexure 22 Split of GOZ Property Portfolio Annexure 23 - Acquisitions and Disposals GOZ Annexure 24 Top 12 GOZ Properties by Value Annexure 25 Simplified Income Statement (Extracts) GOZ Annexure 26 Net Property Income Analysis GOZ Annexure 27 - GLA and Vacancy reconciliation GOZ Annexure 28 - Lease expiry by sector GOZ Swan St, Richmond, VIC

39 39 ANNEXURE 1 - GROWTHPOINT S PROPERTY PORTFOLIO Retail Office Industrial RSA Total V&A GOZ Number of properties GLA (m²) Vacancy (m²) Vacancy (%) 3.6% 6.7% 2.7% 4.0% 2.1% - Valuation (R m) ** Value per m² (excl bulk) Average gross rental (per m²/month) R119 R112 R34 R73 R153 AUD 138* Forward yield 8.4% 8.9% 10.5% 9.1% 7.4% 8.3% Average in force escalations 7.9% 8.8% 8.6% 8.4% 8.5% 3.2% Weighted average lease period (years): - By gross rental *** Excluding Investec Renewal success rate 82.4% 72.6% 73.8% 74.9% 94.7% 100.0% Weighted average renewal growth 7.1% (4.4%) 5.1% 1.63% 6.9% 4.2% Weighted average future escalations on renewals 8.1% 8.8% 8.6% 8.5% 7.2% 3.5% Note: V&A is included at our 50% interest. GOZ is reflected at 100% * Based on net rental per annum ** Excluding value attributable to the rights to undeveloped bulk *** Various leases in the V&A were excluded in the average lease period calculation. When these leases are included the average lease period increases to 12.0 years

40 40 ANNEXURE 2 - SPLIT OF RSA PROPERTY PORTFOLIO (EXCL V&A) Value Value 4% 3% 2% 21% 36% 12% 9% 50% Greater JHB Retail Office Industrial 43% GLA 20% GLA Western Cape Pretoria KwaZulu-Natal Eastern Cape North West 1% 2% 3% Other 22% 13% 51% 8% 55% 27% 18%

41 41 ANNEXURE 3 - ACQUISITIONS RSA (EXCL V&A) Purchase Price R million Sector Initial Yield Ernst & Young ** 71,6 Office Oxford Road, Rosebank 43,3 Office Land Merck Longmeadow ** 10,7 Office - Ciros House, Rivonia * 9,7 Office 10.5% Sovereign Quay * 4,4 Office - * Building consolidated into currently owned property ** Payment for rights to cancel bare dominium structures 139,7

42 42 ANNEXURE 4 - DISPOSALS RSA (EXCL V&A) Brooklyn/Design Square (7% sold), Pretoria Selling price R million Sector Profit/ (loss) on cost Profit/ (loss) on book value Yield 120,3 Retail 54,9 - - Ruimsig Shopping Centre, Roodepoort 73,0 Retail 6,2 (0,1) 8.9% Bronkhorstspruit Mall, Bronkhorstpruit 44,1 Retail 27,7-9.9% Otjiwarongo, Namibia 28,4 Retail 14,2 0,2 11.4% Fountain Grove, Hyde Park 15,0 Office 3,8-10.4% Chamberlain, Durban 33,3 Industrial 8,3 0,1 13.3% Metro Cash & Carry, East London 20,0 Industrial (2,1) (0,6) 7.6% Boston Circle, Cape Town 19,0 Industrial (5,4) % Norbertville, Roodepoort 16,0 Industrial 5,5 (0,1) 7.5% Kelsteel, Kempton Park 15,5 Industrial 2,7 (0,6) 12.6% Rittel, City Deep 10,0 Industrial 3,2-12.0% Vereeniging Road 5, Vereeniging 8,1 Industrial 4,1-6.4% Sheidan, Pretoria 5,0 Industrial 4,3 0,1 - Gazelle, Cape Town 3,2 Industrial 1,9 (0,2) 6.3% Office Montclare residential units, Cape Town 5,1 Residential - 1,2 416,0 129,3 - -

43 ANNEXURE 5 NON-CURRENT ASSETS HELD FOR SALE Properties held for sale Sector Fair value Dec 2011 R million Northcliff Square Shopping Centre, Northcliff Retail 40,5 The Gallery, Milnerton Retail 21,5 Metropark, CBD Pretoria Office 123,1 174 Visagie Street, CBD Pretoria Office 76,6 Meersig, Centurion Office 71,4 The Ridge, Parktown Office 33,6 ABSA Bruma, Bruma Lake Office 22,4 230 Jan Smuts Avenue, Dunkeld West Office 18,0 Montclare Residential Units, Cape Town Residential 1,2 Sarmcol, Amalgam Industrial 8,5 Laser Kimberley Erf 12802, Kimberley Industrial 1,6 Total 418,4 43

44 ANNEXURE 6 - TOP 12 RSA RETAIL PROPERTIES BY VALUE (EXCL V&A) 44 Building Fair value R million 1 Brooklyn/Design Square (75%), Brooklyn, Pretoria * 2 Lakeside Mall, Benoni Waterfall Mall, Rustenburg GLA m² Value 29.3% 4 La Lucia Mall, La Lucia, Durban Kolonnade (50%), Montana Park, Pretoria * 70.7% 6 Northgate (50%), Northriding, Johannesburg * 7 Walmer Park Shopping Centre, Walmer Park, Port Elizabeth Woodmead Retail Park, Woodmead, Johannesburg Top 12 Properties Balance of Retail Properties 9 The Constantia Village, Constantia, Cape Town River Square Shopping Centre, Three Rivers, Vereeniging Golden Acre, CBD, Cape Town GLA 12 Longbeach Mall, Noordhoek, Cape Town Subtotal Balance of the sector Total for the RSA sector * GLA included ofthe % of the undivided share held by Growthpoint Top 12 Properties 46.5% Balance of Retail Properties 53.5%

45 ANNEXURE 7 - TOP 12 RSA OFFICE PROPERTIES BY VALUE (EXCL V&A) 45 Building Fair value R million 1 Investec, Sandton GLA m² Value 2 The Place, Sandton Constantia Office Park, Roodepoort Montclare Place, Claremont, Cape Town Growthpoint Business Park, Midrand Investec, CBD, Cape Town N1 City Hospital, Goodwood, Cape Town Central Park, Midrand Hatfield Gardens, Hatfield, Pretoria Sunnyside Ridge Office Park, Parktown, Johannesburg Fredman Towers, Sandton The District, Woodstock, Cape Town Subtotal Balance of the sector Total for the RSA sector % Top 12 Properties Balance of Office Properties GLA 64.3% 43.4% 35.7% Top 12 Properties Balance of Office Properties

46 ANNEXURE 8 - TOP 12 RSA INDUSTRIAL PROPERTIES BY VALUE (EXCL V&A) 46 Building Fair value R million 1 Growthpoint Industrial Estate, Meadowdale, Germiston Hilltop Industrial Estate, Elandsfontein Adcock Ingram, Midrand GLA m² Value 22.6% 4 Central Park, Elsiesriver, Cape Town Omni Park, Aeroton, Johannesburg Pine Industrial Park, New Germany Grenville, Epping, Cape Town* Brakpan Road, Boksburg Top 12 Properties 77.4% Balance of Industrial Properties 9 Kulingile Building, Isando, Kempton Park Midas, Meadowdale, Germiston Maitland Industrial Park, Maitland, Cape Town Meadowdale, Germiston Subtotal Balance of the sector GLA 19.5% 230 Total for the RSA sector % Top 12 Properties Balance of Industrial Properties

47 ANNEXURE 9 - SIMPLIFIED INCOME STATEMENT (EXTRACTS) RSA 47 Dec 2011 R million Dec 2010 R million Increase Gross property revenue % Retail % Office % Industrial % V&A % Property expenses (561) (464) 20.9% Retail (203) (192) 5.7% Office (191) (177) 7.9% Industrial (102) (95) 7.4% V&A (65) % Net property income % Other operating expenses (58) (47) 23.4% Net property income after operating expenses % Finance costs (644) (452) 42.5% Finance income % Taxation (excl CGT and deferred tax) % Profit before debenture interest %

48 ANNEXURE 10 NET PROPERTY INCOME ANALYSIS RSA (EXCL V&A) 48 Dec 2011 R million Dec 2010 R million Increase Net property income % Adjustments: Acquisitions (109) (31) Disposals (8) (71) Investec rent (112) (98) Adjusted like for like net property income % Retail % Office % Industrial % Total %

49 ANNEXURE 11 GLA AND VACANCY RECONCILIATION RSA (EXCL V&A) 49 Total GLA (m²) Vacant area (m²) Vacancy Balance at 1 July % GLA adjustments (27) Disposals (79 652) (15 416) Developments and extensions Leases expired in the period * Renewals of expired leases ** ( ) New letting of vacant space ( ) Leases terminated Balance at 31 December % * 11.3% of opening balance GLA expired for the period under review ** Retention % of 74.9% compared to 69.3% for the 6 months to Dec 2010 (Jun 2011: 65.8%)

50 ANNEXURE 12 LEASE EXPIRY BY SECTOR RSA (% OF GLA) 50 % Vacant TOTAL 4.0 Monthly TOTAL 2.7 By Dec TOTAL 15.8 By Dec TOTAL 22.4 By Dec TOTAL 17.9 By Dec TOTAL 12.0 By Dec TOTAL beyond TOTAL 15.5 RETAIL OFFICE INDUSTRIAL TOTAL

51 ANNEXURE 13 LEASE EXPIRY BY SECTOR RSA (% OF GROSS MONTHLY RENTAL) 51 % Vacant TOTAL 3.6 Monthly TOTAL 2.7 By Dec TOTAL17.5 By Dec TOTAL 23.3 By Dec TOTAL 17.3 By Dec TOTAL11.7 By Dec TOTAL beyond TOTAL 15.4 RETAIL OFFICE INDUSTRIAL TOTAL

52 ANNEXURE 14 UNITHOLDERS HOLDING >1% AT DEC Name Units held Holding Public Investment Corporation % BEE Consortia % Stanlib % Old Mutual Group % Investec % Investment Solutions % Liberty Group % Vanguard % Transnet Retirement Funds % Prudential % Sanlam Group % Coronation Fund Managers % Momentum % Sentinel Mining Industry Retirement Funds % Total unitholders holding >1% % Other % Total % Foreign unitholding 13.7%

53 ANNEXURE 15 LINKED UNITS ISSUED 53 Linked units Opening balance 1 July Equity raising (July 2011) Distribution reinvestment (September 2011) Closing balance 31 December

54 ANNEXURE 16 DETAILED BORROWINGS 54 RSA Refinance date Dec 2011 R million Jun 2011 R million Commercial paper 4 months (R300m x 3) Jan/Feb/Apr ABSA Nov Nedbank Sep Standard Bank/Sanlam Dec Standard Bank Feb China Construction Bank Aug Corporate Bond 4 years Dec ABSA Paramount Feb RMB Jun Corporate Bond 4.25 years Oct Corporate Bond 5 years Sept Corporate Bond 5 years May RMB Jun RMB Feb RMB Paramount Apr OMSFIN May Investec Buildings loan Feb Total Weighted average interest rate 9.7% % of debt at fixed interest rate 93.1% GOZ * Westpac, NAB, ANZ (weighted average interest rate of 7.7%) Dec Total * Includes a cumulative foreign exchange difference of R1,0 billion (30 Jun 2011: R390,0 million)

55 ANNEXURE 17 DEBT EXPIRY PROFILE RSA 55 Debt expiry at 31 Dec 2011 per 12 month period 25% 23% 20% 15% 10% 5% 12% 12% 14% 6% 8% 11% 9% 5% 0%

56 ANNEXURE 18 INTEREST RATE FIX EXPIRY PROFILE FOR RSA BORROWINGS 56 R m

57 ANNEXURE 19 SPLIT OF V&A PROPERTY PORTFOLIO 57 Property portfolio by value Property portfolio by GLA 13.2% Retail Office 21.7% 22.9% 12.8% Fishing & Industrial 5.8% 14.8% 53.4% Hotel Bulk 31.9% 23.5% Developed vs undeveloped by value 13.2% Developed Undeveloped 86.8%

58 ANNEXURE 20 SIMPLIFIED INCOME STATEMENT (EXTRACTS) V&A 58 Dec 2011 V&A R million Gross property revenue 201 Property expenses (65) Net property income 136 Other operating expenses (2) Net property income after operating expenses 134 Finance costs (1) Finance income 8 Taxation (excl CGT and deferred tax) (1) Profit before debenture interest 140 Distribution for the period 140

59 ANNEXURE 21 LEASE EXPIRY BY SECTOR V&A 59 % of GLA % of gross monthly rental Retail Office Fishing & Industrial Hotel

60 ANNEXURE 22 - SPLIT OF GOZ PROPERTY PORTFOLIO 60 Value * Value 0 8% 06% 41% 59% 33% 41% Industrial Office 2% 10% New South Wales Queensland South Australia GLA GLA Tasmania Victoria 14% 0 9% 07% Western Australia 21% 86% 49% 13% 1% * Based on values at 31 December 2011 before completion of developments

61 61 ANNEXURE 23 - ACQUISITIONS AND DISPOSALS - GOZ Acquisitions Sector R million AUD million Yield 333 Ann Street, Brisbane, QLD Office 909,6 109,9 9.1% CB 1, South Brisbane, QLD Office 532,2 64,3 8.9% CB 2, South Brisbane, QLD Office 268,1 32,4 7.8% Pacific Highway * Office 3,3 0,4 8.1% 1 713,2 207,0 8.7% Note: * Only land value of development project acquired Disposals Sector R million AUD million Yield 1304 Ferntree Gully Road, Scoresby, VIC Industrial 42,8 5,2 7.2% 42,8 5,2 Fox Sports, Gore Hill, NSW (artist s impression) 333 Ann St, Brisbane, QLD

62 62 ANNEXURE 24 TOP 12 GOZ PROPERTIES BY VALUE Building Sector Fair value R million GLA m² Value 1 70 Distribution Street, Larapinta, QLD Industrial Horrie Miller Drive, Perth Airport, WA Industrial % Ann Street, Brisbane, QLD Office GE Swan Street, Richmond, VIC Office % 5 28 Bilston Drive, Wondonga, VIC Industrial Lillkar Road, Goulburn, NSW Industrial CB1, 100 Melbourne Street, South Brisbane, QLD Office Merivale Street, South Brisbane, QLD Office Cordelia Street (car park), South Brisbane, QLD Office Top 12 Properties Balance of GOZ Properties GLA Northcorp Boulevard, Broadmeadows, VIC Industrial Main North Road, Gepps Cross, SA Industrial Richmond Road, Keswick, SA Office Subtotal Balance of the sector % 51.5% 40 Total for the GOZ sector Top 12 Properties Balance of GOZ Properties

63 ANNEXURE 25 - SIMPLIFIED INCOME STATEMENT (EXTRACTS) GOZ Dec 2011 GOZ R million 63 Dec 2010 GOZ R million Increase Gross property revenue % Property expenses (48) (24) 100.0% Net property income % Other operating expenses (19) (14) 35.7% Net property income after operating expenses % Finance costs (189) (132) 43.2% Finance income % Adjustment for non-controlling interest and taxation (excl CGT and deferred tax) (84) (28) 200.0% Profit before debenture interest % Distribution for the period % Note: Average exchange rate R7.84/AUD (Dec 2010: R6.72/AUD) The number of properties in Australia has grown from 33 in December 2010 to 40 in December 2011

64 64 ANNEXURE 26 NET PROPERTY INCOME ANALYSIS GOZ Dec 2011 GOZ AUD 000 Dec 2010 GOZ AUD 000 Increase Net property income (excl straight line lease income) % Adjustments: Acquisitions (17 543) (4 084) Disposals (266) (1 333) Developments (adding additional GLA) - - Adjusted like for like net property income % Office Industrial % Total % 28 Bilston Drive, Wodonga, VIC

65 ANNEXURE 27 - GLA AND VACANCY RECONCILIATION GOZ 65 Total GLA (m²) Vacant (m²) Vacancy Balance at 1 July % GLA adjustments: Disposals (7 621) Acquisitions, developments and extensions Balance at 31 December % 22 Cordelia St, South Brisbane, QLD

66 ANNEXURE 28 LEASE EXPIRY BY SECTOR GOZ 66 % of GLA % of gross monthly rental Office Industrial