ANNUAL RESULTS PRESENTATION

Transcription

1 GROWTHPOINT PROPERTIES LIMITED ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2013

2 AGENDA Introduction & highlights Financial review Capital management Operational review o o o South Africa Australia - GOZ V&A Waterfront Property Investment Activities Sustainability & CSI REIT conversion Prospects Annexures FAST & FURIOUS, Meadowdale, Gauteng

3 WOODMEAD RETAIL PARK, Johannesburg INTRODUCTION & HIGHLIGHTS

4 INTRODUCTION TO GROWTHPOINT 4 The largest listed property company on the JSE with property assets valued at R59,8 billion including 100% of Growthpoint Properties Australia ("GOZ") and 50% of the V&A Waterfront in Cape Town Market capitalisation of R49,9 billion at 30 June 2013 (R26.39 per linked unit) Diversified property portfolio comprising 393 properties in RSA, 44 properties in Australia, which is 65.8% owned, and 50% interest in the properties of the V&A Waterfront Retail Office Industrial Australia V&A Waterfront R15,1 billion R14,9 billion R16,2 billion R8,0 billion R5,6 billion AUD 1,7 billion Fully integrated internally managed property company employing 457 staff

5 HIGHLIGHTS FOR THE YEAR UNDER REVIEW % Return to investors for the year Income yield 6.5% Capital growth 14.7% Distribution per linked unit 149,0 cents 7.2% growth Average annual growth in distributions over last 5 years 7.0% R380,2 million additional investment in Growthpoint Properties Australia 35.2% Return on R3,4 billion Australian investment for the year New equity raised via Distribution Re- Investment Plan (supported by 58.2% of unitholders) Total cost June 2013 R3,4 billion Income yield 11.8% R1,5 billion Market value June 2013 R5,7 billion Capital growth 23.4% New equity raised via placement R2,5 billion Successful conversion to Growthpoint Properties REIT

6 GROWTH IN DISTRIBUTION PER LINKED UNIT 6 Cents 180 Interim distribution Final distribution ,6 58,3 Growth 5.8% 6.5% 121,2 62,1 Growth 8.1% 8.1% 131,0 67,1 Growth 6.1% 6.1% 139,0 71,2 Growth 7.2% 7.2% 149,0 76, ,3 5.0% 59,1 8.1% 63,9 67,8 6.1% 7.2% 72,7 0 FY2009 FY2010 FY2011 FY2012 FY2013

7 GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION 7 Tangible assets (R bn) Unit price (cents) Market cap (R bn) NTAV per unit (cents) R'billion 70 Cents Dec 08 Jun 09 Dec 09 Jun 10 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 0

8 V&A WATERFRONT, Cape Town FINANCIAL REVIEW

9 CONTRIBUTION TO DISTRIBUTABLE INCOME 9 R million % % % 12% % 8% V&A GOZ RSA % % % Jun 13 Jun 12 Jun 11 The contribution from V&A Waterfront and GOZ to total distributable income exceeded 25% at 30 June 2013 The distribution from V&A Waterfront does not take finance costs into account, the related finance costs are included in the RSA contribution to distributable income

10 CONSOLIDATED DISTRIBUTION CALCULATION 10 Jun 2013 R million Jun 2012 R million Increase/ (Decrease) Gross property revenue % RSA % GOZ % Property expenses (1 237) (1 102) 12.3% RSA (1 078) (997) 8.1% GOZ (159) (105) 51.4% Net property income % Other operating expenses (236) (176) 34.1% RSA (175) (128) 36.7% GOZ (61) (48) 27.1% Net property income after operating expenses % Finance costs (1 782) (1 677) 6.3% RSA (1 272) (1 276) (0.3%) GOZ (510) (401) 27.2% Finance income % Investment income from V&A Waterfront (Distributable) % Other finance income % Adjustment for non-controlling interest in GOZ, foreign exchange profit, GOZ income retained & normal taxation (301) (182) 65.4% Distributable profit for the year %

11 WEALTH CREATED AND DISTRIBUTED TO STAKEHOLDERS R million % 8.3% % % % % Reinvested in the group % % % Governments - direct taxes Providers of debt Minority interest holders % Linked unit holders % % % Employees % % 201 Jun 13 Jun 12 Jun % Wealth created is based on a look through principle and therefore include RSA, GOZ and V&A Waterfront

12 EXPENSE TO INCOME RATIO 12 RSA V&A % 35 Property expense ratio Operating expense ratio % 40 Property expense ratio Operating expense ratio % 4.0% 27.4% 27.6% 3.1% 2.7% % 6.6% 32.1% 6.1% % 24.3% 24.9% % 26.0% 26.0% Jun 13 Jun 12 Jun 11 0 Jun 13 Jun 12 % 20 Property expense ratio GOZ Operating expense ratio % 15.1% 14.3% 4.3% 4.7% 5.6% % 10.4% 8.7% 0 Jun 13 Jun 12 Jun 11

13 CONSOLIDATED BALANCE SHEET (EXTRACTS) 13 Jun 2013 R million Jun 2012 R million Increase/ (Decrease) Property portfolio* % RSA % GOZ*** % 50% Investment in V&A Waterfront % Nominal borrowings** (0.8%) RSA (8.4%) GOZ*** % Linked unitholders interest (NAV) % *Includes R545m of properties reclassified as held for sale (June 2012 R515m) **Excludes fair value adjustments ***Closing exchange rate at June R9.03/AUD (June R8.35/AUD)

14 LAKESIDE, Centurion CAPITAL MANAGEMENT

15 LOAN TO VALUE & INTEREST COVER RATIO 15 RSA GOZ** LTV (incl V&A)* Interest cover ratio (incl V&A) LTV* Interest cover ratio % times % times % % % 33.9% 44.4% % Jun 13 Jun 12 Jun 11 Jun 13 Jun 12 Jun 11 *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 the 50% equity investment in V&A Waterfront was included in the fair value of property assets ** Calculated in Rands

16 RSA DIVERSIFIED BORROWINGS 16 R'million Nominal value Debt Capital Market 27.4% Debt Capital Market 24.3% Unsecured 37.8% Debt Capital Market 7.0% Traditional Bank Debt Unsecured 39.0% CMBS 13.8% Unsecured 21.1% Traditional Bank Debt 72.6% Traditional Bank Debt 75.7% Secured 62.2% Secured 61.0% Traditional Bank Debt 79.2% Secured 78.9% Jun 13 Jun 12 Jun 11 Secured Bank Debt Secured Institutional Financier CMBS Unsecured Bank Debt Corporate Bonds Commercial Paper

17 CAPITAL MANAGEMENT 17 The capital expenditure and acquisitions programme was mainly financed through the issue of equity: R613 million raised via the DRIP in September 2012 R857 million raised via the DRIP in March 2013 R2,5 billion raised through placement in May 2013, in anticipation of the capital expenditure and acquisition programme for FY14 RSA debt balance reduced by R1,1 billion following May 2013 capital raise 5 Year corporate bond of R500 million issued in December 2012 at 150 basis points over Jibar Commercial paper of R400 million rolled in July 2013 at 21 basis points (23 basis points in June 2012) RSA debt profile: Jun 2013 Jun 2012 Unutilised committed facilities (R billion) 3,3 2,1 Weighted average term of liabilities (years) Weighted average term of fixed interest rate profile (years) Weighted average interest rate (%) % Debt at fixed interest rates Moody's has maintained Growthpoint's credit ratings, with a stable outlook Treasury policy guidelines reaffirmed by Board of Directors: Growthpoint will ensure that cash flows from operations plus available credit facilities will exceed committed cash outflows and debt maturities over a rolling 12 month period Growthpoint will fix the interest rate on a minimum of 75% of total debt

18 THE PLACE, Sandton OPERATIONAL REVIEW

19 BROOKLYN MALL, Pretoria SOUTH AFRICA

20 RSA PORTFOLIO OVERVIEW 20 R'million NET PROPERTY INCOME R'million PROPERTY PORTFOLIO (BY VALUE) % 41% % 43% % 42% % 41% % 42% % 42% % % % % 37% % 0 Jun 13 Jun 12 Jun 11 0 Jun 13 Jun 12 Jun NUMBER OF PROPERTIES % % % Industrial Office 200 Retail % % 32% % 47 12% 51 Jun 13 Jun 12 Jun 11 12%

21 NET PROPERTY INCOME ANALYSIS RSA 21 Jun 2013 R million Jun 2012 R million Increase/ (Decrease) Gross property revenue % Retail % Office % Industrial % Property expenses (1 078) (997) 8.1% Retail (439) (401) 9.5% Office (423) (390) 8.5% Industrial (216) (206) 4.9% Net property income % Adjustments: (388) (404) (4.0%) Acquisitions & developments (118) (74) 59.5% Disposals (36) (103) (65.0%) Investec rent (234) (227) 3.1% Adjusted like for like net property income % Retail % Office % Industrial %

22 KEY PERFORMANCE INDICATORS RSA 22 Jun 2013 Jun 2012 Vacancies (%) Total arrears (R million) 29,9 32,6 Bad debts (R million) 10,9 7,8 Average in force escalations (%) Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Number of employees Net property income per employee (R)

23 RSA - RETAIL 23 Turnover growth is in line with national benchmarks but is decelerating, especially in lower and middle market Size of portfolio: Jun 2013 R million Jun 2012 R million International retailer interest remains strong at prime shopping centres. However, finding suitable premises in terms of location and size is challenging Vacancies, excluding space under development, are at longterm average of 2.5%. Distortion of top 10 centre vacancy is due to redevelopments at Brooklyn Mall and Kolonnade where vacancies have been 100% pre-let The non-renewal of shops forming part of redevelopments has resulted in the interim marginal deterioration of renewal success rate but remains above 80% with future rental escalations of 8% at renewal Disposal of non-core retail properties valued at R180 million during year with a further R460 million in process of transfer, improving portfolio risk profile Net property income Portfolio value Vacancy: % % Total portfolio Arrears: R million R million Total 18,2 14,8 Bad debt provision 8,8 5,2 Renewals: % % Renewal success rate Renewal rental growth Extensions/Redevelopments at Brooklyn Mall, Kolonnade, Walmer Park and Northgate on time and within budget and expected to open for trade from Q3/3013 to Q3/2014 Foot-count at the top 15 shopping centres declined by 0.9%, whilst turnover increased at an average of 6% over the year, negatively impacted by Waterfall Mall Average trading densities of the top 15 shopping centres amounted to R2 560/m 2 /month (6 centres achieved trading densities in excess of R35 000/m 2 /annum)

24 RSA - OFFICE 24 Net property income growth on total portfolio impacted by the sale of 13 properties for R545 million during the year at a profit of historical cost of R241 million Market conditions have remained challenging and vacancies have increased from 5.8% to 7.8%. Recently completed developments accounted for 1.6% of the increase in vacancy. Vacancies well below the national office vacancy for Q2/ 2013 of 11% Letting of m² in the year, m² of space was renewed and m² of new space let. Renewal success rate has dropped due to major tenants vacating or downsizing Arrears at an all time low due to strict credit control, ending the year at 2.9% of collectables Size of portfolio: Jun 2013 R million Jun 2012 R million Net property income Portfolio value Vacancy: % % Total portfolio Arrears: R million R million Total 5,9 10,9 Bad debt provision 3,2 6,2 Renewals: % % Renewal success rate Renewal rental growth 3.6 (1.5) Five new developments completed totaling m². Two have achieved Green Star certifications from GBCSA Focus on tenant relationships, maximising rental growth and tight cost control in new year. Acquisition and development opportunities will be explored and non-core properties to be sold

25 RSA - INDUSTRIAL 25 Sound performance considering the economic environment and negative sentiment Size of portfolio: Jun 2013 R million Jun 2012 R million Low vacancy and arrear levels unlikely to continue in the future o m² renewed in financial year o m² of new letting during financial year Slowdown in retail sales is a proxy for slowing manufacturing output expected to remain sluggish Acquisition opportunities expensive and very limited New developments/redevelopments are yield enhancing Have to own developable land to be in the game Emergence of new industrial nodes and significant activity in Kwa-Zulu Natal Net property income Portfolio value Vacancy: % % Total portfolio Arrears: R million R million Total 5,8 6,9 Bad debt provision 2,6 2,8 Renewals: % % Renewal success rate Renewal rental growth Warehousing/logistics as a subsector is the best performer (56% of portfolio) Emergence of retail warehousing as a subsector (5% of portfolio) Strategy: o Protect net income whilst operating costs are increasing o Pursue financially viable developments/redevelopments o Do the basics well in the current economic environment

26 TULLAMARINE, Victoria, Australia AUSTRALIA GOZ

27 GOZ PORTFOLIO OVERVIEW 27 R'million NET PROPERTY INCOME R'million PROPERTY PORTFOLIO (BY VALUE) % % % % 96 Jun 13 Jun 12 Jun 11 83% 17% % % % % Jun 13 Jun 12 Jun 11 72% 28% 50 NUMBER OF PROPERTIES % 27 66% 29 78% Industrial Office % 14 34% 8 Jun 13 Jun 12 Jun 11 22%

28 KEY PERFORMANCE INDICATORS - GOZ 28 Jun 2013 Jun 2012 Vacancies (%) Total arrears (R million) 0,5 0,3 Average in force escalations (%) Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Number of employees Net property income per employee (R)

29 OPERATIONAL REVIEW - GOZ 29 Growing income AUD76,0 million distributable profit and distributable income per security 19,3 cps; up 8.6% from FY ,3 cps distribution; up 4% from FY2012 (before withholding tax of 0,77 cps payable by international investors Growhtpoint RSA) Distribution declared equates to 95% of distributable profit Growing portfolio AUD83,0 million of property acquisitions during FY2013 AUD60,2 million of property acquisitions announced to date in FY2014 Excellent property fundamentals AUD1,7 billion portfolio with exposure in every Australian state and Canberra WALE: 6.8 years at June 2013 WARR: 3.1% at June 2013 Prudent Capital Management Weighted average debt maturity of 4.3 years at June 2013 Balance sheet gearing of 46.8% at June % debt hedged at June 2013 with an average maturity of 3.4 years Low risk income Long WALE, all leases on fixed annual increase, high level of hedging, quality tenants and medium-term debt Low management expenses 0.4% Management Expense Ratio (all costs except interest divided by total property value) Strong support Investors (particularly GRT) continue to support growth including via DRIP High total return 23.6% total security holder return for year to June % total return for 3 years to June 2013 ROE for year end to June 2013 of 13.1% 19,0 cps distribution guidance for FY2014, 8.1% distribution yield on AUD2.35 (closing price at 22 August 2013) 1 Source: UBS Investment Research

30 V&A WATERFRONT, Cape Town V&A WATERFRONT

31 V&A PORTFOLIO OVERVIEW (50%) 31 R'million NET PROPERTY INCOME % % 12% 43 14% 79 24% 61 20% R'million PROPERTY PORTFOLIO (BY VALUE) % % % 373 7% 461 9% % 18% % % % % % 0 Jun 13 Jun 12 0 Jun 13 Jun 12 Hotel Bulk Fishing & Industrial Hotel Office Fishing & Industrial Retail Office Retail

32 KEY PERFORMANCE INDICATORS V&A (50%) 32 Jun 2013 Jun 2012 Vacancies (%) Total arrears (R million) 19,9 19,1 Bad debts (R million) 1,0 (1,8) Average in force escalations (%) Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) Number of employees* Net property income at 100% per employee (R) *Decrease in the number of employees due to parking management being outsourced

33 OPERATIONAL REVIEW V&A 33 Retail Retail vacancies at a record low of 0% Continued strong retail sales growth of 16% year on year to June 2013, well in excess of inflation resulting in average trading densities in excess of R4 500/m 2 /month New openings of Zara, Topshop, Moyo, Market on the Wharf and the Shimmy Restaurant and Beach Club have had a positive spin off on footfall, retail sales, as well as revenue growth Footfall growth showing the same trend as revenue growth, with visitors stay just short of 3,5 hours per visit and spend per head of R175 The V&A received the award for the highest number of visitors in one day in a South African Shopping Centre for the third consecutive year Commercial Office vacancy levels dropped to 2.4% at the year end. This compares favourably to the CBD vacancy level of 13.5% for A-grade office space Average lease periods negotiated are 5 years with escalations in excess of 8% There is demand for high quality commercial assets, as well as interest from both local and international blue chip tenants

34 OPERATIONAL REVIEW V&A (CONT D) 34 Hotel The hotel market is slowly starting to gather momentum. Over the last year, room occupancies and average room rates have grown year on year, however, they are still only now reaching 2008 levels Fishing and Industrial Fishing and industrial revenue continues to be strong with no vacancies Development update Allan Gray just about complete with first phase of staff moves into the property already under way Additional retail space in the new flagship Pick 'n Pay store and Crossmall development should release some 6 900m² of GLA. These are due to trade pre-christmas 2013 A new tunnel linking Victoria Wharf and the Breakwater parking garage is part of the development. The existing Pick n Pay space will be reconfigured and re-let in the early part of 2014 The V&A will be developing apartments to let. These will be located in Portswood Ridge and above the Breakwater parking garage. This is in line with the strategy to encourage more people to "Live, work, play and stay" in the V & A V&A to embark on a R46m redevelopment of Workshop 17 and the current Blue Shed. The existing 4 000m² shed will be redeveloped in an exciting way to house both our craft and design activities. This is a joint venture with the Graduate School of Business and is part of the V&A's CSR initiative. The objective is to assist small businesses with basic infrastructure, further create employment, as well as develop a place of networking and growth The MyCity bus service to be welcomed into the V&A. The first phase will be complete by Christmas The IRT stations will directly link the V&A with the airport, the CBD and Table View areas

35 NESTLÉ, Cape Town PROPERTY INVESTMENT ACTIVITIES

36 PROPERTY INVESTMENT ACTIVITIES 36 Annexures Retail Office Industrial RSA Total GOZ Total V&A Opening balance Purchase price of acquisitions 3 & Selling price of disposals 4 &22 (180) (545) (144) (869) (688) (1 557) - Developments and capex 5 & 22 & Fair value adjustment FCTR Total Long-term property assets Reclassified as Held for Sale Commitments 7 & 22&

37 ELLERINES, Cape Town SUSTAINABILITY & CSI

38 SUSTAINABILITY & CSI 38 Nedbank Capital Sustainable Business Award winner for 2013 Growthpoint has once again been included in the JSE SRI (Social Responsible Investment) Index Excelling at the Carbon Disclosure Project (CDP) by achieving a Gold status score of 95% Monitoring electricity usage to help our clients reduce cost and have subsequently installed 241 bulk check meters at various buildings Achieving an additional energy saving of over 4.5 million kwh of energy and kl of water per annum At Growthpoint Properties our philosophy towards being responsible global citizens is intrinsically linked to us having a long-term sustainable impact

39 SUSTAINABILITY & CSI CSI Expenditure 2% 6% 28% 24% 40% Entrepreneurship Education Subsidies Infrastructure Other Our key focus areas are education, entrepreneurship and infrastructure development, with a total CSI spend of R12 million We support under resourced communities through infrastructure development. One of these projects is the construction of the Genesis Trust Community and Youth Centre in Marburg, Kwa-Zulu Natal, where activities available at the centre include computer training, entrepreneurial skills and practical training such as woodwork and crafts Since inception of the Property Point programme, it has created over 800 sustainable jobs and unlocked market opportunities to the value of over R130 million within the industry Growsmart is an innovative literacy programme in partnership with the Western Cape Education Department, delivering measureable impact with over learners reached in the Western Cape since its inception Pursuing potential of future property leaders by offering student bursaries within the property field worth over R Staff Community Involvement Projects (HALO) - staff commit to the upliftment of their local communities through various needs-focused projects

40 MENLYN CORNER, Pretoria REIT CONVERSION

41 REIT CONVERSION 41 Implication to Growthpoint On 1 July 2013, Growthpoint converted from a PLS to a REIT, after approval was obtained from the JSE The capital structure, comprising of a linked debenture and share, was delinked and the debenture was capitalised to equity. This simplifies the Growthpoint capital structure and ensures that only shares remain traded on the JSE The Growthpoint REIT shares started trading on the JSE on 2 August 2013 The 2013 final distribution paid in September 2013, will still be paid as interest and dividends based on the linked unit structure that was in place for the year ended 30 June 2013 Future distributions will be in the form of a REIT qualifying distribution and will be subject to tax in terms of section 25BB of the South African Income Tax legislation: o As a REIT, Growthpoint will get a deduction on the qualifying distribution, therefore the return to shareholders will remain pre-tax income o No capital gains tax will be payable on disposal of investment property or disposals of investments in subsidiaries that hold investment property. This will provide more capital to reinvest o The first REIT dividend will be paid in March 2014

42 REIT CONVERSION 42 Benefits of Growthpoint being a REIT Simplified capital structure Abolition of capital gains tax arising from the disposal of properties Certainty of the deduction of our distributions in the form of dividend to shareholders More attractive investment for foreign investors Inclusion in various Global REIT indexes possible South Africa REITs have been granted a tax dispensation that is internationally recognised and will be regulated by the JSE A representative body, the SA REIT Association (SAREIT) has been formed by the sector to address industry issues. One of SAREIT s first initiatives will be to develop a Best Practice Property Reporting Guideline for its member REIT entities

43 HITACHI, Johannesburg PROSPECTS

44 PROSPECTS 44 RSA The economy Higher inflation (6%), slower GDP growth (2%), labour unrest and countless strikes, weak manufacturing output and increased unemployment all suggest a tough operating environment Property fundamentals Remain relatively robust, however will be negatively impacted by higher office vacancies, weaker retail spending, speculative developments Funding environment Regulatory environment Access to debt funding (Banks, Life Companies and Bond Markets) remains good, however a significant increase in longer term interest rates since mid-may 2013, will impact interest costs going forward With listed property shares having lost around 25% of their value since the peak in May 2013 and all fixed income type investments under pressure due to rising bond yields, raising new equity will be a lot more difficult and expensive Process whereby PLS s convert to REITs has started (25 PLS s have converted) JSE the new regulator with tax certainty having been achieved (a few loose ends still to be tied up) New simplified capital structure (shares vs linked units) Investment market Quality property investment opportunities remain expensive and are hard to find Higher funding costs and increase in yields prevalent in the listed property market will take 6 to 12 months to filter through to the direct property market

45 PROSPECTS (CONT D) 45 GOZ The economy Inflation (2.4%) and unemployment (5.7%) appear under control however GDP growth of about 2.5% is below the long term trend, impacted by weak consumer demand and residential property market Property fundamentals Remain solid, especially the industrial sector, however retail and office sectors showing some weakness Funding environment Investment market Accessing Bond Market funding remains a challenge due to higher LTV ratio, however access to Bank funding has improved markedly with longer term funding and lower margins being achieved Equity funding also negatively impacted by higher global bond yields and a more muted sell-off of listed property shares in Australia. Growthpoint RSA to continue to support the growth of GOZ Relatively high yields (7% to 8%) still available for good quality investment property (non-cbd) with industrial sector offering the best value Competition for best quality assets remains fierce with many global property investors seeking to enter the Australian property investment market or increase their exposure

46 PROSPECTS (CONT D) 46 V&A Waterfront Property fundamentals Investment and development The trading environment at the V&A remains very strong with Q versus Q turnovers increasing at over 19%, which is having a positive impact on trading densities and rent/turnover ratios Other key metrics including vacancies and arrears remain positive with the hotel sector also starting to show positive signs off a low base Demand for retail space in the V&A remains strong with demand for office space improving The experiment, testing the market s appetite for new residential properties for sale, yielded positive results Currently there are 14 development and re-development projects under way at the V&A and the development master plan for certain of the precincts is starting to take shape V&A is set to produce like-for-like distribution growth of between 6% and 7%, however some development projects are likely to be dilutive to the overall yield Group Overall conclusion Growthpoint is likely to deliver similar distribution growth for the year to June 2014 as it did in FY2013

47 V&A WATERFRONT, Cape Town ANNEXURES

48 CONTENT 48 Annexure 1 GROWTHPOINT S PROPERTY PORTFOLIO Annexure 2 SPLIT OF RSA PROPERTY PORTFOLIO Annexure 3 ACQUISITIONS RSA Annexure 4 - DISPOSALS RSA Annexure 5 DEVELOPMENTS AND CAPITAL EXPENDITURE RSA Annexure 6 NON-CURRENT ASSETS HELD FOR SALE RSA Annexure 7 - COMMITMENTS RSA Annexure 8 - TOP 10 RSA RETAIL PROPERTIES BY VALUE Annexure 9 - TOP 10 RSA RETAIL TENANTS Annexure 10 - TOP 10 RSA OFFICE PROPERTIES BY VALUE Annexure 11 - TOP 10 RSA OFFICE TENANTS Annexure 12 - TOP 10 RSA INDUSTRIAL PROPERTIES BY VALUE Annexure 13 - TOP 10 RSA INDUSTRIAL TENANTS Annexure 14 GLA AND VACANCY RECONCILIATION RSA Annexure 15 - LEASE EXPIRY BY SECTOR RSA (% OF GLA) Annexure 16 LEASE EXPIRY BY SECTOR RSA (% OF GROSS MONTHLY RENTAL) Annexure 17 - LINKED UNITS ISSUED AND UNITHOLDERS HOLDING > 2% AT JUNE 2013

49 CONTENT (CONT D) 49 Annexure 18 DETAILED BORROWINGS Annexure 19 - DEBT EXPIRY PROFILE RSA Annexure 20 - FIXED INTEREST RATE EXPIRY PROFILE FOR RSA BORROWINGS Annexure 21 - SPLIT OF GOZ PROPERTY PORTFOLIO Annexure 22 ACQUISITIONS, DISPOSAL, DEVELOPMENTS AND COMMITMENT GOZ Annexure 23 TOP 10 GOZ PROPERTIES BY VALUE Annexure 24 - TOP 10 GOZ TENANTS Annexure 25 NET PROPERTY INCOME ANALYSIS GOZ Annexure 26 - GLA AND VACANCY RECONCILIATION GOZ Annexure 27 LEASE EXPIRY BY SECTOR GOZ Annexure 28 - SPLIT OF V&A PROPERTY PORTFOLIO Annexure 29 - DEVELOPMENTS AND COMMITMENTS V&A (50%) Annexure 30 TOP 10 V&A TENANTS (100%) Annexure 31 NET PROPERTY INCOME ANALYSIS V&A (50%) Annexure 32 - GLA AND VACANCY RECONCILIATION V&A (50%) Annexure 33 LEASE EXPIRY BY SECTOR V&A

50 ANNEXURE 1 GROWTHPOINT S PROPERTY PORTFOLIO 50 Retail Office Industrial RSA Total GOZ* V&A* Number of properties GLA (m 2 ) Vacancy (m 2 ) Vacancy (%) Valuation (R m) Value per m 2 (excl bulk) Average gross rental (Rand per m 2 /month) AUD163** 155 Forward yield (%) Average in force escalations (%) Weighted average lease period (years): - By gross rental Renewal success rate (%) Weighted average renewal growth (%) Weighted average future escalations on renewals (%) *V&A is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100% **Based on net rental per annum

51 ANNEXURE 2 SPLIT OF RSA PROPERTY PORTFOLIO 51 Value Value 21% 38% 9% 4% 3% 2% 12% 50% Greater JHB Retail 41% 20% Western Cape Office Industrial GLA 22% 13% GLA 2% 3% 1% Pretoria KwaZulu-Natal Eastern Cape North West Other 51% 8% 55% 27% 18%

52 ANNEXURE 3 ACQUISITIONS RSA 52 Acquisitions *Consolidated into Walmer Park Shopping Centre Sector Purchase price R million Pick n Pay Walmer, Port Elizabeth* Retail 12,7 * Menlyn Corner, Menlyn, Pretoria Office 209,7 9.2% Willowbridge Office Park, Bellville, Cape Town Office 121,8 9.0% Deloitte and Touche, Durban Office 103,8 8.1% 116 Teakwood Road, Durban Industrial 22,9 9.9% Midrand Central Business Park, Midrand Industrial 20,8 Land Total 491,5 Yield

53 ANNEXURE 4 DISPOSALS RSA 53 Disposals Selling price R million Sector Profit/ (loss) on cost Profit/ (loss) on book value Atlas Mall Shopping Centre, Boksburg 58,0 Retail 27,1 (0,1) 7.8% Northcliff Square Shopping Centre, Northcliff 40,2 Retail 0,2 0,2 9.3% Heritage Market, Durban 75,0 Retail (47,6) (0,1) 9.2% Other Retail below R20,0 million (1 property) 7,0 Retail (3,8) (0,1) 9.0% ABSA Midrand, Midrand 114,0 Office 29,9 (5,4) 8.9% 174 Visagie Street, Pretoria 82,8 Office 60,4 33,1 16.5% Sunset Boulevard, George 73,0 Office 48,4 (0,1) 10.2% 7 Sturdee Avenue, Rosebank 59,4 Office 3,8 0,4 9.2% 5 Sturdee Avenue, Rosebank 46,6 Office 29,9 (0,5) 9.2% 115 Paul Kruger Street, CBD, Pretoria 40,4 Office 26,5 0,3 10.4% ABSA Cash Centre, Durban 30,3 Office 5,8 0,1 10.2% La Rocca, Bryanston 28,4 Office 8,4 (0,3) 10.5% Other Office below R20,0 million (5 properties) 70,5 Office 27,6-11.6% Amalgam South, Crown, Johannesburg 44,4 Industrial 32,9 (0,1) 9.9% Illnov, East London 35,0 Industrial 17,1-10.3% Fitzmaurice (portion), Epping, Cape Town 27,0 Industrial 9,1 (1,5) 11.7% Other Industrial below R20,0 million (4 properties) 37,1 Industrial 16,0 0,7 15.9% Total 869,1 291,7 26,6 Yield

54 ANNEXURE 5 DEVELOPMENTS AND CAPITAL EXPENDITURE RSA 54 Developments and capital expenditure Sector R million Brooklyn / Design Square (75%), Brooklyn, Pretoria Retail 57,0 Walmer Park, Port Elizabeth Retail 39,2 Other Retail below R30,0 million Retail 100,8 44 On Grand Central, Midrand Office 75,0 Lakeside 3, Centurian, Pretoria Office 54,0 Growthpoint Business Park, Midrand Office 34,4 Other Office below R30,0 million Office 268,6 Meadowbrook Estate (Gundle Site), Germiston Industrial 86,1 Other Industrial below R30,0 million Industrial 188,9 Total 904,0

55 ANNEXURE 6 NON-CURRENT ASSETS HELD FOR SALE RSA 55 Properties held for sale Sector Fair value Jun 2013 R million Gustav Voigts, Windhoek, Namibia, Retail 220,0 Arcadia Centre, Pretoria Retail 68,6 Centurion Southlake 1 & 2, Centurion, Pretoria Retail 61,0 Cowey Park, Durban Office 67,1 140 Daisy Street, Sandton Office 33,5 81 Central Street, Houghton Office 23,6 Trador, Witbank Industrial 30,8 Kwaford, Port Elizabeth Industrial 29,0 Witdrich, Witbank Industrial 11,3 Total 544,9

56 ANNEXURE 7 COMMITMENTS RSA 56 Commitments Sector R' million Developments Walmer Park, Port Elizabeth Retail 70,1 Brooklyn/Design Square (75%), Brooklyn, Pretoria Retail 68,2 Kolonnade (50%), Montana Park, Pretoria Retail 30,3 Brookfield Office Park, Brooklyn, Pretoria Office 34,9 Allen Road, Elandsfontein, Germiston Industrial 42,3 Other below R30,0 million 57,3 Subtotal 303,1 Acquisitions Stikland, Belville, Cape Town Industrial 37,8 Other below R30,0 million 60,7 Subtotal 98,5 Total Commitments 401,6

57 ANNEXURE 8 TOP 10 RSA RETAIL PROPERTIES BY VALUE 57 Building Fair value R million GLA m 2 1 Brooklyn/Design Square (75%), Brooklyn, Pretoria Waterfall Mall, Rustenburg Lakeside Mall, Benoni La Lucia Mall, La Lucia, Durban Alberton City, Alberton Kolonnade (50%), Montana Park, Pretoria Walmer Park Shopping Centre, Walmer Park, Port Elizabeth The Constantia Village, Constantia, Cape Town Woodmead Retail Park, Woodmead, Johannesburg Northgate (50%), Randburg Subtotal Balance of the sector Total for the Retail sector % Value GLA 65.0 % Top 10 Properties Balance of Retail Properties 52.1 % 47.9 % Top 10 Properties Balance of Retail Properties

58 ANNEXURE 9 TOP 10 RSA RETAIL TENANTS 58 Retail Gross Monthly Rental R 000 % of Gross Monthly Retail % of Total Rental GLA m 2 Retail GLA 1 Edcon Holdings (Pty) Ltd The Foschini Group Ltd Pick n Pay Stores Ltd Mr Price Group Ltd Shoprite Holdings Ltd Pepkor Holdings Ltd Massmart Holdings Ltd Woolworths Holdings Ltd Truworths International Ltd Clicks Group Ltd Subtotal Balance of the sector Total for the Retail sector (excl. vacancies)

59 ANNEXURE 10 TOP 10 RSA OFFICE PROPERTIES BY VALUE 59 Building Fair value R million GLA m 2 1 Investec, Sandton The Place, Sandton Constantia Office Park, Roodepoort Growthpoint Business Park, Midrand Montclare Place, Claremont, Cape Town Investec, CBD, Cape Town N1 City Hospital, Goodwood, Cape Town Hatfield Gardens, Hatfield, Pretoria Central Park, Midrand Sunnyside Ridge Office Park, Parktown, Johannesburg Subtotal Balance of the sector Total for the Office sector % Value GLA 41.0 % Top 10 Properties Balance of Office Properties 34.1 % 65.9 % Top 10 Properties Balance of Office Properties

60 ANNEXURE 11 TOP 10 RSA OFFICE TENANTS 60 Office Gross Monthly Rental R 000 % of Gross Monthly % of Total Office Rental GLA m 2 Office GLA 1 Investec Bank Ltd Netcare Hospitals (Pty) Ltd Ernst & Young Services Business Connexion (Pty) Ltd Mobile Telephone Networks (Pty) Ltd AON South Africa Allied Electronics Corporation Ltd EON Mthombo (Pty) Ltd IBM South Africa Macquarie Africa (Pty) Ltd Subtotal Balance of the sector Total for the Office sector (excl. vacancies)

61 ANNEXURE 12 TOP 10 RSA INDUSTRIAL PROPERTIES BY VALUE 61 Building Fair value R million GLA m 2 Value 1 Growthpoint Industrial Estate, Meadowdale, Germiston Adcock Ingram, Midrand Hilltop Industrial Estate, Elandsfontein Central Park, Elsiesriver, Cape Town Pine Industrial Park, New Germany Grenville, Epping, Cape Town Omni Park, Aeroton, Johannesburg Kulingile Building, Isando, Kempton Park Newmarket Industrial Estate, Alberton Meadowbrook Estate (Gundle Site), Germiston Subtotal Balance of the sector Total for the Industrial sector % GLA 20.1 % Top 10 Properties Balance of Industrial Properties 17.9 % 82.1 % Top 10 Properties Balance of Industrial Properties

62 ANNEXURE 13 TOP 10 RSA INDUSTRIAL TENANTS 62 Industrial Gross Monthly Rental R 000 % of Gross Monthly Industrial Rental GLA m 2 % of Total Industrial GLA 1 The Bidvest Group Ltd Ellerine Furnishers (Pty) Ltd Adcock Ingram Holdings Ltd Scania SA (Pty) Ltd Midas Group (Pty) Ltd The Laser Transport Group (Pty) Ltd Kulingile Metals (Pty) Ltd Iliad Africa Trading (Pty) Ltd Allied Electronics Corporation Ltd Barloworld Logistics (Pty) Ltd Subtotal Balance of the sector Total for the Industrial sector (excl. vacancies)

63 ANNEXURE 14 GLA AND VACANCY RECONCILIATION RSA 63 Total GLA (m 2 ) Vacant area (m 2 ) Vacancy Balance at 1 Jul % GLA adjustments (12 535) 15 Disposals ( ) (10 514) Acquisitions Developments and extensions Leases expired in the year* Renewals of expired leases** - ( ) New letting of vacant space - ( ) Leases terminated Balance at 30 Jun % *19.8% of opening balance GLA expired during the year under review **Retention % of 70.4% compared to 75.2% for the year to June 2012

64 ANNEXURE 15 LEASE EXPIRY BY SECTOR RSA (% OF GLA) 64 % Vacant TOTAL 4.4 Monthly TOTAL 4.2 By Jun TOTAL 20.0 By Jun TOTAL 17.9 By Jun TOTAL 18.8 By Jun TOTAL 11.5 By Jun TOTAL 10.0 Jul 2018-beyond TOTAL 13.2 Retail Office Industrial

65 ANNEXURE 16 LEASE EXPIRY BY SECTOR RSA (% OF GROSS MONTHLY RENTAL) 65 % Vacant TOTAL 4.6 Monthly TOTAL 4.3 By Jun TOTAL 19.5 By Jun TOTAL 17.6 By Jun TOTAL 16.4 By Jun TOTAL 10.0 By Jun TOTAL 12.2 Jul 2018-beyond TOTAL 15.4 Retail Office Industrial

66 ANNEXURE 17 LINKED UNITS ISSUED AND UNITHOLDERS HOLDING > 2% AT JUNE Linked units Opening balance 1 Jul Distribution re-investment (Sep 2012) Distribution re-investment (Mar 2013) Capital raising (May 2013) Closing balance 30 Jun Name Holding % Units held Public Investment Corporation BEE Consortia Stanlib Old Mutual Group Investec Investment Solutions Vanguard Eskom Pension & Provident Fund Momentum Sanlam Group Total unitholders holding > 2% Other Total Foreign unitholding 17.7%

67 ANNEXURE 18 DETAILED BORROWINGS 67 RSA Secured/Unsecured Refinance Date Jun 2013 R million Jun 2012 R million Commercial paper - 3 months Unsecured Jul Nedbank Unsecured Sep Standard Bank Secured Feb China Construction Bank Secured Sept ABSA Secured Nov Corporate Bond GRT01 Unsecured Dec Corporate Bond GRT05 Unsecured Jan ABSA - Paramount Secured Mar RMB Secured Jun Corporate Bond GRT03 Unsecured Oct Standard Bank Secured Feb Sanlam Secured Feb Corporate Bond GRT02 Unsecured May Corporate Bond GRT04 Unsecured Sep RMB Secured Jun Corporate Bond GRT06 Unsecured Dec RMB Secured Mar RMB Paramount Secured Apr Nedbank Unsecured Dec OMSFIN Secured May Investec Secured Feb RSA Subtotal GOZ* GOZ: Westpac, NAB, ANZ (weighted average interest rate of 6.7%) Secured Apr 2016 Dec * 6 118* Total RSA and GOZ * Includes a cumulative foreign exchange difference of R1,6 billion (June 2012: R1,1 billion)

68 ANNEXURE 19 DEBT EXPIRY PROFILE RSA 68 % 30 Debt expiry profile at 30 June 2013 per 12 month period

69 ANNEXURE 20 FIXED INTEREST RATE EXPIRY PROFILE FOR RSA BORROWINGS 69 % Fixed interest rate expiry % at 30 June 2013 per 12 month period

70 ANNEXURE 21 SPLIT OF GOZ PROPERTY PORTFOLIO 70 Value Value 2% 7% 3% 11% 39% 48% 52% 9% 29% Queensland Victoria Industrial South Australia Office 17% GLA 6% 9% GLA 1% 2% 21% New South Wales Western Australia Australian Capital Territory Tasmania 12% 83% 49%

71 ANNEXURE 22 ACQUISITIONS, DISPOSAL, DEVELOPMENTS AND COMMITMENT GOZ 71 Acquisitions Sector R million AUD million Yield Lenore Lane, Erskine Park, NSW Industrial 215,1 23,9 8.0% 6 7 John Morphett Place, Erskine Park, NSW Industrial 344,1 38,2 8.2% Lenore Lane, Erskine Park, NSW Industrial 188,8 20,9 8.0% Total 748,0 83,0 Disposal Sector R million AUD million Yield 134 Lillkar Road, Goulburn, NSW Industrial 688,4 74,7 8.0% Developments Sector R million AUD million Yield Pacific Highway, Artarman, NSW Office 345,1 38,2 8.0% Sandgate Road, Nundah, QLD Office 245,5 27,2 8.0% Mort Street, Canberra, ACT Office 36,0 4,0 9.8% Other below R30,0 million 54,5 6,0 - Total 681,1 75,4 Commitment for a development Sector R million AUD million Yield Lenore Lane, Erskine Park, NSW Industrial 228,5 25,3 8.1%

72 ANNEXURE 23 TOP 10 GOZ PROPERTIES BY VALUE 72 GOZ Sector Fair value R million GLA m Distribution Street, Larapinta, QLD Industrial Horrie Miller Drive, Perth Airport, WA Industrial Value Ann Street, Brisbane, QLD Office Pacific Highway, Artarmon, NSW Office Sandgate Road, Nundah, QLD Office Swan Street (Building 2), Richmond, VIC Office Bilston Drive, Wodonga, VIC Industrial % 54.1% Northcorp Boulevard, Broadmeadows, VIC Industrial CB1, 22 Cordelia Street, South Brisbane, QLD Office Cordelia Street, South Brisbane, QLD Office Subtotal Balance of GOZ Top 10 Properties Balance of GOZ Properties GLA 44 Total for GOZ % 60.3% Top 10 Properties Balance of GOZ Properties

73 ANNEXURE 24 TOP 10 GOZ TENANTS 73 GOZ Gross Monthly Rental R 000 % of Gross Monthly Rental GLA m 2 % of Total GLA 1 Woolworths Ltd GE Capital Finance Australasia Linfox Australia Commonwealth of Australia Sinclair Knight Merz Energex Fox Sports Star Track Express Runge Ltd Macmahon Corporation Subtotal Balance of the sector Total for GOZ (excl. vacancies)

74 ANNEXURE 25 NET PROPERTY INCOME ANALYSIS GOZ 74 Jun 2013 R million Jun 2012 R million Increase/ (Decrease) Gross property revenue % Property expenses (159) (105) 51.4% Net property income % Adjustments: (477) (147) Foreign exchange impact (144) - Acquisitions & developments (301) (91) Disposals (32) (56) Adjusted like for like net property income % Office % Industrial % Average exchange rate R9.07/AUD (JUNE 2012: R8.04/AUD)

75 ANNEXURE 26 GLA AND VACANCY RECONCILIATION GOZ 75 Total GLA (m 2 ) Vacant area (m 2 ) Vacancy Balance at 1 Jul % GLA adjustments Disposal (42 826) - Acquisitions Leases expired in the year* Renewals of expired leases** - - New letting of vacant space - (3 458) Leases terminated Balance at 30 Jun % *0.4% of opening balance GLA expired during the year **Leases that expired were let to new tenants

76 ANNEXURE 27 LEASE EXPIRY BY SECTOR GOZ % % of GLA % % of gross monthly rental Office Industrial

77 ANNEXURE 28 SPLIT OF V&A PROPERTY PORTFOLIO 77 Property portfolio by value Property portfolio GLA 9% 11% Retail Office 22% 23% Retail Office 7% 18% 55% Fishing & Industrial Hotel Bulk 32% 23% Fishing & Industrial Hotel Developed vs undeveloped by value Net property income 11% Developed 10% Retail Undeveloped 12% Office 24% 54% Fishing & Industrial Hotel 89%

78 ANNEXURE 29 DEVELOPMENTS AND COMMITMENTS V&A (50%) 78 Developments Sector R million Allan Gray Office 170,2 Other below R30,0 million 56,3 Total 226,5 Commitments for Developments R million Residential developments, Breakwater & Portswood Residential 112,5 Allan Gray Office 51,4 Pick 'n Pay development Retail 45,8 Other below R30,0 million 16,3 Total 226,0

79 ANNEXURE 30 TOP 10 V&A TENANTS (100%) 79 V&A Gross Monthly Rental R 000 % of Gross Monthly % of Total Rental GLA m 2 GLA 1 The Board of Executors Allan Gray Ltd Legacy Hotels BP Southern Africa Sun International Hotels Woolworths Holdings Ltd Tourvest Holdings (Pty) Ltd Newmark Hotels The Foschini Group Ltd National Department of Public Works Subtotal Balance of the V&A Total for the V&A (excl. vacancies)

80 ANNEXURE 31 NET PROPERTY INCOME ANALYSIS V&A (50%) 80 Jun 2013 R million Jun 2012 R million Increase/ (Decrease) Gross property revenue % Property expenses (118) (107) 10.3% Net property income % The distribution received from the V&A Waterfront is R312m (June 2012: R293m), which is the net property income of R324m (June 2012: R305m), after the operating expenses of R29m (June 2012: R25m), net finance income of R18m (June 2012: R13m) and NCI of R1m (June 2012: R0m).

81 ANNEXURE 32 GLA AND VACANCY RECONCILIATION V&A (50%) 81 Total GLA (m 2 ) Vacant area (m 2 ) Vacancy Balance at 1 Jul % GLA adjustments (79) (79) Developments and extensions Leases expired in the year* Renewals of expired leases** - (12 073) New letting of vacant space - (4 054) Leases terminated Balance at 30 Jun % *7.1% of opening balance GLA expired during the year under review **Retention % of 88.6%, compared to 83.7% for the year to June 2012

82 ANNEXURE 33 LEASE EXPIRY BY SECTOR V&A 82 % 100 % of GLA % of gross monthly rental Retail Office Fishing & Industrial Hotel

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