ANNUAL RESULTS PRESENTATION. For the year ended 30 June 2016

Transcription

1 ANNUAL RESULTS PRESENTATION For the year ended 30 June 2016

2 AGENDA Strategy & Highlights Financial Results Capital Management Portfolio Update South Africa V&A Waterfront GOZ Conclusion Annexures Harbour, V&A Waterfront

3 Value 1 STRATEGY & HIGHLIGHTS Bridgepark, Cape Town

4 2016 REVIEW Tough year Volatile financial markets Increasing interest rate environment

5 Supply continues to exceed demand Depressed local and global growth Refining our vision which drives our strategy Optimising and streamlining the existing portfolio Non core properties identified for sale Introduction of new revenue streams Funds management business Trading and development Grow contribution of non-sa distributable income GOZ Europe incl. Eastern Europe

6 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion VISION & MISSION VISION To be a leading international property company providing space to thrive MISSION We create value for all our stakeholders through innovative and sustainable property solutions 6

7 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion FY16 HIGHLIGHTS 183,8 cents 6.0% growth dividend per share 5.7% vacancies Same as FY15 FY16 strong focus on tenant retention 27.2% expense-to-income RSA expenses under control 27.8% FY % LTV RSA gearing levels remain conservative, decreased from 32.1% FY % growth in gross revenue R5,1bn 19.8% distributable income growth R112,5bn property assets 19.7% property value increase GOZ 7

8 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion GROWTHPOINT HIGHLIGHTS #1 R3,8bn 35th Top 7 th Excellent corporate governance largest average value traded/ month largest company on the JSE 5 year Transparent reporting South African, primary listed REIT Most liquid and tradeable way to own commercial property in SA Inclusion in FTSE/JSE Top 40 Index Market capitalisation R71,5bn Constituent FTSE Russell EPRA/NAREIT Emerging Index Inclusion in FTSE/JSE Responsible Investment Index Sustainable quality of earnings Proven management track record Underpinned by high-quality physical property assets Diversified across sectors and geography 8

9 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion GROWTH IN DIVIDEND PER SHARE (CENTS) 139,0 71,2 Growth 7.2% 7.2% 149,0 76,3 Growth 8.3% 8.5% 161,3 82,8 Growth 7.5% 7.5% 173,4 44,5 44,5 Growth 6.0% 6.0% 183,8 94,3 67,8 7.2% 72,7 8.0% 78,5 7.5% 84,4 6.0% 89,5 FY12 FY13 FY14 FY15 FY16 Interim dividend Special dividend Final dividend London Circuit, Canberra, ACT 9

10 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share (cents) Rbn 120 Cents c 2 474c FY11 FY12 FY13 FY14 FY15 FY

11 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion LONG BOND YIELD VS. GRT FORWARD YIELD Long Bond GRT Forward Yield 11% 10% 9% 8% 7% 6% 5% 4% 01/07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/ /01/ /07/2016 Jun 2011 Dec 2011 Jun 2012 Dec 2012 Jun 2013 Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun

12 Value 2 FINANCIAL RESULTS Hilltop Industrial Park, Elandsfontein

13 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion CONTRIBUTION TO DISTRIBUTABLE INCOME Growth 21.0% Growth 19.8% R5 072m R4 232m % 15.2% R3 497m % 14.7% 9.5% % 15.5% 8.7% % 75.9% % % FY14 FY15 FY16 RSA V&A Waterfront GOZ Listed Investments The Oval, Cape Town 13

14 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion CONSOLIDATED DISTRIBUTION CALCULATION FY16 Rm FY15 Rm INCREASE/ (DECREASE) Gross property income % RSA % GOZ % Property expenses (2 126) (1 630) 30.4% RSA (1 864) (1 417) 31.5% GOZ (262) (213) 23.0% Net property income % Other operating expenses (308) (303) 1.7% RSA (204) (222) (8.1%) GOZ (104) (81) 28.4% Net property income after operating expenses % Finance costs (2 466) (2 086) 18.2% RSA (1 989) (1 663) 19.6% GOZ (477) (423) 12.8% Finance income (23.0%) Investment income from V&A Waterfront % Other finance income (1) (46.5%) Adjustment for NCI, foreign exchange profit / (loss), normal taxation and profit on sale of Stor-Age (552) (476) 16.0% Distributable profit % Dividend for the period % 1. Includes R39m (FY15: R66m) dividends received on treasury shares held, R31m antecedent dividend, R22m distribution from Stenham (FY15: R345m from Acucap & Sycom prior to the acquisition of the remaining interest on 1 April 2015) and R50m interest on V&A Waterfront development funding. * Average exchange rate at R10.57/AUD (FY15: R9.55/AUD) for GOZ. 14

15 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion EXPENSE TO INCOME RATIOS (IFRS) SOUTH AFRICA V&A WATERFRONT GOZ 28.6% 27.8% 27.2% 29.9% 30.7% 30.8% 17.4% 16.0% 16.8% 3.8% 3.8% 2.7% 3.3% 2.9% 3.1% 24.8% 24.0% 24.5% 26.6% 27.8% 27.7% 5.3% 4.4% 4.8% 12.1% 11.6% 12.0% FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio 15

16 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion CONSOLIDATED BALANCE SHEET (EXTRACTS) FY16 Rm FY15 Rm INCREASE/ (DECREASE) Property portfolio (1) % RSA % GOZ (2) % 50% Investment in V&A Waterfront % Other property-related investments (40.7%) Nominal borrowings (3) % RSA (4) (3.1%) GOZ (2) % Shareholders interest % 1. Includes R1 938m of properties classified as held for sale (FY15: R539m), of which R1 674m relates to GOZ. 2. Closing exchange rate at R11.04/AUD (FY15: R9.40/AUD). 3. Excludes fair value adjustments. 4. The total value for FY16 excludes the deferred payments of R165m on the Samrand land purchased. The two outstanding payments are due Sept 2016 and Sept

17 Value 3 CAPITAL MANAGEMENT Inanda Greens, Sandton

18 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion RSA CAPITAL MANAGEMENT Debt Funding Bank margins increased since last year DCM more liquid More volatility in swap rates post Nenegate & BREXIT Sovereign rating downgrade uncertainty remains Equity Funding R1,8bn raised incl. DRIP FOR RSA FY16 FY15 Unutilised committed facilities (Rbn) 5,9 4,1 Weighted average term of liabilities (years) Weighted average term of fixed interest rate profile (years) Weighted average interest rate (%) Weighted average interest rate (%) (Incl. CCIRS) 8.5 N/A % debt at fixed interest rate (incl. forward starting swaps) Unencumbered assets (incl. V&A Waterfront and listed investments) (Rbn) 37,2 35,1 Unsecured debt (Rbn) 8,1 7,5 Greenfield Industrial Park, Cape Town 18

19 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion RSA CAPITAL MANAGEMENT (CONTINUED) MOODY S RECALIBRATION National Scale Aaa.za - one of only two SA corporates Global Scale Baa2/P-2 capped at sovereign rating Negative outlook based on that of sovereign BONDS R1.4bn of bonds and commercial paper repaid Bond issues well supported, raised R1,6bn for a term of 3-5 years Continued issuance of commercial paper R400m BANKING RELATIONSHIPS R4,0bn of bank debt repaid R5,6bn of new bank debt Continued support for good quality borrowers CROSS CURRENCY INTEREST RATE SWAPS Total AUD452m representing 59% of the historical cost of GOZ and 38% of market value of GOZ Yield on GOZ higher than implied cost of AUD Oxford Corner, Rosebank 19

20 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion RSA DIVERSIFIED BORROWINGS NOMINAL VALUE R16 499m R25 444m R24 653m Debt capital market 26.1% Traditional bank debt 73.9% Unsecured 37.0% Secured 63.0% Debt capital market 12.0% Traditional bank debt 88.0% Unsecured 29.6% Secured 70.4% Debt capital market 14.9% Traditional bank debt 85.1% Unsecured 32.3% Secured 67.7% FY14 FY15 FY16 Secured bank debt Secured institutional financier Unsecured bank debt and institutional financier Corporate bonds Commercial paper 1. The total value for FY16 excludes the deferred payments of R165m on the Samrand land purchased. The two outstanding payments are due Sept 2016 and Sept (1) 20

21 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion LOAN TO VALUE AND INTEREST COVER RATIOS SOUTH AFRICA GOZ (2) GROUP LTV LTV (1) ¹ Interest Interest cover cover ratio ratio (incl (incl V&A) V&A) LTV (1) LTV¹ Interest (1) Interest cover ratio cover ratio LTV (1) LTV¹ (1) Interest Interest cover ratio cover ratio 40% 30% 20% 27.4% 32.1% 30.8% 30.5% % 30% 20% 40.6% 36.8% 42.0% % 30% 20% 30.8% 33.2% 33.7% % 2 10% 3.5x 3.4x 3.2x 3.7x x 3.8x 3.3x 3.4x 3.3x 10% 2 1 0% FY14 FY15 FY16 0 0% FY14 FY15 FY16 0 0% FY14 FY15 FY16 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. 0 21

22 Value 4 PORTFOLIO UPDATE The Annex, Sandton

23 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion PORTFOLIO HIGHLIGHTS RETAIL OFFICE INDUSTRIAL V&A WATERFRONT (50%) AUSTRALIA (GOZ) TOTAL R29,2bn 58 properties 1.4m m² R33,3bn 182 properties 1.8m m² R11,3bn 227 properties 2.3m m² R7,8bn 1 property 0.2m m² R30,9bn 58 properties 1.1m m² R112,5bn* 526 properties 6.8m m² *Includes 100% of GOZ and 50% of V&A Waterfront. 23

24 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion CONSOLIDATED PORTFOLIO OVERVIEW NET PROPERTY INCOME PROPERTY PORTFOLIO (by value) RSA 70.7% V&A Waterfront 5.7% GOZ 23.6% RSA 65.6% V&A Waterfront 6.9% GOZ 27.5% Willowbridge Place, Cape Town 24

25 The Boulevard, Umhlanga PORTFOLIO UPDATE South Africa

26 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa PORTFOLIO OVERVIEW (EXCL. V&A) NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE R3 615m R4 479m R5 725m R49 054m R71 550m R73 752m 14.6% 15.3% 23.2% 19.9% 16.6% 46.0% 52.8% 48.6% 48.6% 18.9% 46.0% 45.1% 44.0% 32.8% 47.3% 32.8% 37.4% 37.8% 9.4% 39.1% 12.3% 39.0% 12.4% 49.0% 32.1% 39.4% 39.6% FY14 FY15 FY16 Retail Office Industrial FY14 FY15 FY16 Retail Office Industrial FY14 FY15 FY16 Retail Office Industrial 26

27 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion NET PROPERTY INCOME ANALYSIS South Africa FY16 Rm FY15 Rm INCREASE/ (DECREASE) Gross property revenue % Retail % Office % Industrial % Property expenses (1 864) (1 417) 31.5% Retail (814) (525) 55.0% Office (794) (635) 25.0% Industrial (256) (257) (0.4%) Net property income % Adjustments (1 897) (855) Acquisitions and developments (237) (192) Acucap & Sycom (1 369) (338) Ellerines (11) (7) Disposals (24) (69) Investec rent (256) (249) Adjusted like-for-like net property income % Retail % Office % Industrial % 27

28 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion KEY PERFORMANCE INDICATORS South Africa FY16 FY15 Vacancies (%) Total arrears (Rm) 64,3 63,7 Provision for bad debts (B/S) (Rm) 29,8 25,9 Bad debts (I/S) (Rm) 15,9 15,1 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) Ridgeview, Umhlanga 28

29 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion RETAIL South Africa NET PROPERTY INCOME Increased 45.5%; Acucap & Sycom portfolio included for a full 12 months FY16 FY15 Size of portfolio Rm Rm VACANCIES Improved to 2.6% due to ongoing leasing activity and focus on tenant retention Core retail vacancy is 2% Net property income Portfolio value Vacancy % % ARREARS Nominal increase in arrears is a reflection of challenging trading conditions Arrears as a % of total collectables improved to 9.7% vs. 10.2% for FY15 Legal arrears of R14,3m (FY15: R16,8m) are fully provided for Total portfolio Arrears Rm Rm LEASING TRADING Renewal success rate improved to 89.3% but at the expense of lower escalation on renewal rentals Renewal success rate target above 90% Western Cape trading densities increased by 6.1% Increased competition experienced at nine of our shopping centres with the development of new malls in their primary catchment areas Affluent shopping centres trading density increased by 7.1% 17 shopping centres exceeding R1bn turnover per year Total portfolio 37,5 35,6 Bad debt provision 15,1 14,7 Renewals % % Renewal success rate Weighted average renewal growth

30 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion OFFICE South Africa NET PROPERTY INCOME NPI increased 24.4%, mainly due to the acquisition of Acucap & Sycom included for a full 12 months like for-like portfolio increased 6.1% FY16 FY15 Size of portfolio Rm Rm VACANCIES ARREARS Decreasing (SAPOA vacancies Q %) A and P grade properties more resilient Nodes showing backfill risk: Sandton, Rosebank, Illovo, Midrand and Houghton Demand for P Grade space in Sandton and Rosebank The control of arrears has become more difficult with many tenants experiencing cash constraints and requesting more time to pay rentals Arrears were however well contained at 3.7% of collectables Legal matters account for R8,6m of this balance, of which R7,8m was provided for Net property income Portfolio value Vacancy % % Total portfolio Arrears Rm Rm LEASING Renewal success rate 0.6% below last year Negative renewal growth of 3.5% impacted by 3 renewals on m² Total portfolio 15,3 18,8 Bad debt provision 7,8 7,4 Renewals % % DEVELOP- MENTS Over m² of developments completed or in progress during the period Located in Sandton, Centurion, Century City, Umhlanga and Bryanston, with 97% of this space pre-let Renewal success rate Weighted average renewal growth (3.5)

31 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion INDUSTRIAL South Africa NET PROPERTY INCOME NPI increased 6.7% despite difficult trading conditions for our clients like-for-like portfolio, excluding 3 properties of just over m² increased 5.7% and renewal growth excluding these properties was 4.0% FY16 FY15 Size of portfolio Rm Rm VACANCIES Deteriorated above market (4.5%) but expected to normalise by HY17 with a number of large vacancies either immanently let or sold Four properties represent 2.21% of the total vacancy at m² Net property income Portfolio value Vacancy % % ARREARS Increased off a low base with tenants feeling the pressure of the broader SA economy Total portfolio Arrears Rm Rm LEASING DEVELOP- MENTS Manufacturing sector impacted by the weak macro; as such rentals have come under pressure Large warehouses and logistics consolidation, has enabled tenants to negotiate favourable rentals The improvement in the renewal success rate and corresponding decline in the rental growth rate is indicative of us having to keep tenants vs. the costs of vacancies and other associated costs Good development pipeline across JHB, KZN and Cape Town 3 rd party development opportunities (Turnkey) New sustainable rental streams at very low expense ratios m² currently under development across six properties Total portfolio 11,5 9,3 Bad debt provision 6,9 3,8 Renewals % % Renewal success rate Weighted average renewal growth

32 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion PROPERTY INVESTMENT ACTIVITIES South Africa ACQUISITIONS DISPOSALS DEVELOPMENTS & CAPITAL EXPENDITURE COMMITMENTS R840,5m R1,1bn R2,4bn R1,7bn 32

33 The Grain Silo, V&A Waterfront PORTFOLIO UPDATE V&A Waterfront

34 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A WATERFRONT PORTFOLIO OVERVIEW (50%) NET PROPERTY INCOME V&A Waterfront PROPERTY PORTFOLIO VALUE R356m R399m R462m R5 947m R6 761m R7 766m 14.7% 9.8% 23.3% 21.4% 17.6% 9.5% 21.6% 18.4% 8.9% 18.6% 8.4% 11.5% 6.6% 18.7% 7.5% 11.6% 6.1% 20.9% 6.4% 11.4% 5.8% 23.8% 52.2% 48.1% 51.3% 54.1% 54.8% 53.9% 52.6% 30.5% FY14 FY15 FY16 Retail Office Fishing & Industrial Hotel & Residential FY14 FY15 FY16 Retail Office Fishing & Industrial Hotel & Residential Bulk 34

35 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion KEY PERFORMANCE INDICATORS V&A Waterfront FY16 FY15 Vacancies (%) Total arrears (Rm) 28,1 21,0 Provision for bad debts (B/S) (Rm) 8,6 8,4 Bad debts (I/S) (Rm) 1,4 2,0 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) The Grain Silo, V&A Waterfront 35

36 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront OPERATIONAL REVIEW RETAIL SALES GROWTH Continued double digit year on year sales growth at 22% Trading density increased by 13% for the period Benefit seen from weaker Rand, increased tourists and enhanced tenant mix DEVELOP- MENT The Hildebrand restaurant will be split to celebrate harbour edge dining and offer a new Portuguese concept The Quayside project will provide enclosure during the winter season and include an alfresco offering which will further enhance the food offering at the V&A TO LET VACANCIES & TENANT MIX Vacancies low at 0.5% H&M traded since October 2015, currently one of their top five stores globally in terms of unit sales New retailers for the country include Versace, Hackett and Seafolly GREEN SUSTAIN- ABILITY Victoria Wharf achieved the first in Africa 4 star Green Star Rating on the existing building Strong demand for space with no vacancies 24,2m VISITORS Up 2.75% Increased tourism, earlier onset of H&M and good weather include drawing factors WATERSHED CRAFT & DESIGN Commitment to growing strength of small businesses 34% sales growth Trading densities particularly strong The Wellness offering to be relocated to the ground floor 36

37 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion OPERATIONAL REVIEW V&A Waterfront OFFICE FISHING & INDUSTRIAL TO LET VACANCIES 1.7% Well below national benchmark DOCKSIDE PRECINCT The V&A Waterfront has managed its first season of the cruise liner terminal To date some passengers, 45 vessels and crew members have been through the terminal WORKSHOP 17 Co-working and meeting space Trading for just under 12 months At 100% occupancy level Expansion of W17 space to meet continued demand and waiting list of small businesses STABLE FISHING INDUSTRY Long term leases in place Attraction of high calibre blue chip tenancies DEVELOP- MENT PwC and Werksmans took occupation in the Silo District Virgin Active opening December 2016 The Canal District looks forward to welcoming BAT in October 2016 and EY in

38 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion OPERATIONAL REVIEW V&A Waterfront HOTEL RESIDENTIAL TRADING LEVELS Continued growth in hotel trading levels and performance Benchmark comparatives indicate that the V&A Waterfront hotels trade at approx. 20% premium levels Hotel occupancies exceed the Western Cape s TO LET The income stream is still in its early days Just over 250 apartments to let The renewals and new letting are being managed to decrease the vacancy levels DEVELOP- MENT Silo Hotel, operated by Royal Hotel Portfolio opens its doors in early 2017 The first Radisson Red in South Africa on track to open September 2017 DEVELOP- MENT Silo No. 3 residential apartments remain popular and in demand 80% of the 79 units have been sold MUSEUM & ART ZEITS MOCAA The first for Africa, Museum of Contemporary Art nearing completion in December 2016 Official opening of this non-profit organisation in September

39 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront PROPERTY INVESTMENT ACTIVITIES ACQUISITIONS DISPOSALS DEVELOPMENTS & CAPITAL EXPENDITURE COMMITMENTS - - R420,0m R483,0m Excludes R77,5m development expenditure spent on Silo 3 which is classified as inventory 39

40 Dorcas Street, Melbourne, VIC PORTFOLIO UPDATE GOZ

41 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion GOZ GOZ PORTFOLIO OVERVIEW NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE R1 421m R1 631m R1 913m R20 859m R22 024m R30 938m 44.1% 52.6% 49.4% 51.5% 68.6% 67.9% 65.5% 50.1% 49.8% 47.4% 50.6% 48.5% 31.4% 32.1% 34.5% 49.9% 50.2% 55.9% FY14 FY15 FY16 Office Industrial FY14 FY15 FY16 Office Industrial FY14 FY15 FY16 Office Industrial 41

42 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion KEY PERFORMANCE INDICATORS GOZ FY16 FY15 Vacancies (%) (1) Total arrears (Rm) 4,7 0,4 Provision for bad debts (B/S) (Rm) - - Renewal success rate (%) Total letting success rate (%) Weighted average renewal growth (%) (0.5) 3.0 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 3.1% Atlantic Drive, Keysborough, VIC 42

43 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion OPERATIONAL REVIEW GOZ LTV of 42.6% SHARE- HOLDER RETURN 7.4% total security holder return for FY16 FY16 distribution guidance achieved, total of AUD20.5 cents 7.7% increase in NTAV per stapled security over FY15 PRUDENT CAPITAL MANAGE- MENT 65% debt fixed or hedged with an average maturity of 5.7 years All in cost of debt of 4.1% 4.2 years weighted average maturity of debt AUD250m DCM issuance for seven years at an all in cost of 4.46% pa GROWING PORTFOLIO AUD314,3m property acquisitions during FY16 5.5% uplift in like-for-like property values LEASING 78.5% tenant retention (by income) Over m² of leasing was completed in FY16 SOLID PROPERTY FUNDAMEN- TALS Quality tenants, diversified across office and industrial sectors, located in every Australian state and the ACT 6.9 years WALE and 1% vacancy with limited lease expiry risk in the short term 43

44 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion PROPERTY INVESTMENT ACTIVITIES GOZ ACQUISITIONS DISPOSALS DEVELOPMENTS & CAPITAL EXPENDITURE COMMITMENTS R3,4bn - R441,3m R496,7m 44

45 Value 5 CONCLUSION Midrand Central Business Park, Midrand

46 LOOKING FORWARD V&A Waterfront South Africa Stable, but weakening property fundamentals Weak macro with limited opportunities for growth Looming debt downgrade Strategy to diversify the non-sa contribution to distributable income through our internationalisation aspirations Introduction of a funds management business Optimisation of existing portfolio Exploring trading and development opportunities Strong property fundamentals Continued growth; benefiting from the weaker rand Development pipeline in the Silo and Canal districts converting into revenue generating investments Good development pipeline and exploring ways to acquire additional bulk

47 LOOKING FORWARD GOZ Stable property fundamentals Macro intact despite reliance on commodities Positive funding yield spread dynamic Deep understanding of the Australian property market Continue to pursue opportunities for growth: Dorcas street acquisition GPT Metro Office Fund take over DIVIDEND GUIDANCE Dividend growth for FY17 should be similar to that achieved for FY16

48 Illovo Sugar, Umhlanga THANK YOU

49 Eastgate, Sandton ANNEXURES

50 ANNEXURE CONTENTS Growthpoint s property portfolio Property investment activities Expense to income ratios (Gross) Loan exposure per financier RSA Debt expiry profile per financier RSA Fixed interest rate expiry profile RSA Wealth created & distributed to stakeholders Shares issued & beneficial shareholders holding >2% at FY16 Split of RSA property portfolio Acquisitions RSA Disposals RSA Developments & Capital Expenditure RSA Commitments RSA Non-current assets held for sale RSA Retail overview RSA The Towers, Sandton 50

51 ANNEXURE CONTENTS Office overview RSA Industrial overview RSA GLA & vacancy reconciliation RSA Split of V&A Waterfront property portfolio Developments & commitments V&A Waterfront (50%) Net property & distributable income analysis V&A Waterfront (50%) V&A Waterfront overview GLA & vacancy reconciliation V&A Waterfront (50%) Split of GOZ property portfolio Acquisitions GOZ Developments & commitments GOZ Non-current assets held for sale GOZ Net property income analysis GOZ GOZ overview GLA & vacancy reconciliation GOZ Den Anker, V&A Waterfront 51

52 ANNEXURE 01: GROWTHPOINT S PROPERTY PORTFOLIO 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) AUD198.0 (2) Forward yield (%) Average in force escalations (%) Weighted average lease period (years): By gross rental Renewal success rate (%) Total letting success rate (%) Weighted average renewal growth (%) 5.9 (3.5) (0.5) 6.0 Weighted average future escalations on renewals (%) 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). 52

53 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 Purchase price of acquisitions 10, Selling price of disposals 11 - (887) (242) (1 129) - (1 129) - Developments and capex 12,20, Fair value adjustment 448 (457) Foreign currency translation Total Long-term property assets Classified as held for sale 14, Commitments 13,20, V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%. 53

54 ANNEXURE 03: EXPENSE TO INCOME RATIOS (GROSS)* 3.2% SOUTH AFRICA V&A WATERFRONT GOZ 39.1% 38.2% 38.5% 35.2% 35.9% 36.9% 18.6% 16.9% 17.7% 3.2% 2.3% 3.1% 2.7% 2.9% 35.9% 35.0% 36.2% 32.1% 33.2% 34.0% 5.2% 4.3% 4.7% 13.4% 12.6% 13.0% FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio FY14 FY15 FY16 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. 54

55 ANNEXURE 04: LOAN EXPOSURE PER FINANCIER RSA Nedbank 24% RMB 24% Standard Bank 16% JSE (Corporate Bonds) 15% OMSFIN 7% LibFin 5% Investec 5% ABSA 3% China Construction Bank 1% 55

56 ANNEXURE 05: DEBT EXPIRY PROFILE PER FINANCIER RSA 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 19% 19% 19% 18% 12% 6% 0% 7% 0% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 ABSA China Construction Investec JSE (Corporate Bonds) LibFin Nedbank Omsfin RMB Standard Bank 56

57 ANNEXURE 06: FIXED INTEREST RATE EXPIRY PROFILE RSA 30% 13% 8% 14% 15% 11% 26% 9% 0% 4% 25% 20% 15% 10% 5% 0% Floating FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 57

58 ANNEXURE 07: WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS* Rm R6 652m R8 060m R10 216m % 9.0% 27.1% 4.4% % 9.3% 27.5% 4.1% % 9.2% 26.5% 4.4% % % % % % % FY14 FY15 FY16 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. 58

59 ANNEXURE 08: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY16 SHARES Opening balance 1 July Shares issued for acquisition (September 2015) Dividend reinvestment (September 2015) Dividend reinvestment (March 2016) Shares issued for acquisition (April 2016) 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 Southern Palace Properties (Pty) Ltd Stanlib Asset Management Ltd Old Mutual Group Investec Asset Management (Pty) Ltd Coronation Fund Managers Ltd The Vanguard Group BEE Consortium Investment Solutions Ltd Eskom Pension & Provident Fund Sanlam Investment Management Total shareholders holding >2% Other Total Foreign shareholding: 27.2% of institutional ownership and 21.3% of total shares issued 59

60 ANNEXURE 09: SPLIT OF RSA PROPERTY PORTFOLIO VALUE GLA VALUE GLA Retail 40% Office 45% Industrial 15% Retail 26% Office 33% Industrial 41% Greater JHB 56% Western Cape 21% Pretoria 8% KwaZulu-Natal 8% Eastern Cape 4% North West 2% Other 1% Greater JHB 59% Western Cape 20% Pretoria 5% KwaZulu-Natal 11% Eastern Cape 3% North West 1% Other 1% 60

61 ANNEXURE 10: ACQUISITIONS RSA ACQUISITIONS SECTOR PURCHASE PRICE Rm Samrand development, Midrand Industrial 340,3 Land Pinmill Farm (50%), Sandton, Johannesburg Office 177,5 8.7% 33 Fricker Road, Illovo, Sandton, Johannesburg Office 115,2 8.5% Paul Smit Anderbolt, Boksburg, Johannesburg Industrial 59,0 11.1% 4 Pencarrow, Umhlanga Ridge, Durban Office 41,0 8.8% 35 & 37 Wierda Road West, Wierda Valley, Sandton, Johannesburg Office 36,1 8.6% 3 Spartan Crescent, Eastgate, Sandton, Johannesburg Industrial 30,0 9.8% 35 Impala Road, Sandton, Johannesburg Office 28,0 6.8% 57 on Gibson, Aeroton, Johannesburg Industrial 13,4 7.7% TOTAL 840,5 YIELD 61

62 ANNEXURE 11: DISPOSALS RSA DISPOSALS SECTOR SELLING PRICE Rm PROFIT/(LOSS) ON COST Rm PROFIT/(LOSS) ON BOOK VALUE Rm Discovery Head Office (45%), Sandhurst, Sandton, Johannesburg Office 462,5 - - n/a Fairview Office Park, Greenacres, Port Elizabeth Office 112,5 56,5 (0,5) 11.6% Greenacres Office Park, Newton Park, Port Elizabeth Office 107,0 48,7 0,1 8.3% 132 Jan Smuts Avenue, Sandton, Johannesburg Office 91,0 (10,5) - 9.3% JD Group Warehouse, Germiston, Johannesburg Industrial 70,0 42,3-7.0% Gazelle, Midrand Industrial 38,0 16,5 4,0 7.6% Laser Clayville, Midrand Industrial 36,0 22,0 0,1 11.5% BCX - Port Elizabeth, Newton Park, Port Elizabeth Office 36,0 (9,9) - 6.0% Garfield, Alberton, Johannesburg Industrial 30,0 14,3-7.6% The Crescent, Sunninghill, Johannesburg Office 28,5 (1,7) (1,6) 10.5% 29 West Street, Houghton, Johannesburg Office 25,9 11,2-7.7% 4 Halifax Road, Pinetown, Durban Industrial 23,8 5,9 (0,3) 9.1% 31 West Street, Houghton, Johannesburg Office 22,1 3,8-7.7% Linus, Parow, Cape Town Industrial 20,5 6,7-11.6% Laser New Brighton, New Brighton, Port Elizabeth Industrial 13,8 9,0 (0,4) 33.0% Laser Silvertondale, Silvertondale, Pretoria Industrial 9,5 5,6-7.8% Woodstock, Cape Town Office 2,0 (0,7) 0,2 9.0% TOTAL 1 129,1 219,7 1,6 YIELD 62

63 ANNEXURE 12: DEVELOPMENTS & CAPITAL EXPENDITURE RSA DEVELOPMENTS & CAPITAL EXPENDITURE (1) SECTOR ESTIMATED COMPLETION DATE Vaal Mall (77.9%), Vanderbijlpark, Johannesburg Retail Dec ,3 Greenacres, Greenacres, Port Elizabeth Retail Jul ,1 KeyWest Shopping Centre, Krugersdorp, Johannesburg Retail Nov ,8 Fourways Crossing (50%), Fourways, Johannesburg Retail Jun ,5 Other, below R30m Retail 214,2 Discovery Head Office (55%), Sandhurst, Sandton Office Dec ,0 Anslow Phase 2, Bryanston, Sandton Office July ,9 The Boulevard, Umhlanga, Durban Office Apr ,3 Golf Park, Mowbray, Cape Town Office Jul ,0 Ridgeview, Umhlanga Ridge, Durban Office Dec ,9 Bridgepark, Century City, Cape Town Office Jun ,9 Other, below R30m Office 402,4 Greenfield Industrial Park, Airport Industrial, Cape Town Industrial Mar ,0 Isobar, Isando, Kempton Park, Johannesburg Industrial Sep ,4 Midrand Central Business Park 518, Midrand Industrial Nov ,2 Hilltop Industrial Park, Elandsfontein, Johannesburg Industrial Jul ,3 Monte Carlo, New Germany, Pinetown, Durban Industrial Feb ,6 Other, below R30m Industrial 279,5 TOTAL 2 394,3 DEVELOPMENT EXPENDITURE 1433,3 CAPITAL EXPENDITURE 961,0 1. The average yield for developments is 8.0% - 9.0% on a fully let basis. FY16 Rm 63

64 ANNEXURE 13: COMMITMENTS RSA COMMITMENTS SECTOR ESTIMATED COMPLETION DATE Developments (1) 1 696,6 Vaal Mall (77.9%), Vanderbijlpark, Johannesburg Retail Dec ,3 Greenacres, Greenacres, Port Elizabeth Retail Jul ,3 River Square Shopping Centre, Three Rivers, Vereeniging Retail Nov ,8 Discovery Head Office (55%), Sandhurst, Sandton Office Dec ,1 Dominic Corner, Boksburg Industrial Jun ,2 M1 Place, Eastgate, Sandton Industrial Nov ,1 Other below R30,0m Various Various 122,8 Acquisitions 50,7 Below R30,0m Various 50,7 FY16 Rm TOTAL 1 747,3 1. The average yield for developments is 8.0% - 9.0% on a fully let basis. 64

65 ANNEXURE 14: NON-CURRENT ASSETS HELD FOR SALE RSA PROPERTIES HELD FOR SALE SECTOR 16 Fricker Road, Illovo, Sandton, Johannesburg Office 61,4 295 Florida Road, Morningside, Durban Office 29,4 Bremerton, Newton Park, Port Elizabeth Office 54,0 Laser Isipingo, Isipingo, Durban Industrial 40,5 Osram, Randjespark, Midrand Industrial 23,8 Redwood, Roodekop, Germiston Industrial 55,0 TOTAL RSA 264,1 FY16 Rm 65

66 ANNEXURE 15: 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 Waterfall Mall, Rustenburg Vaal Mall (77.9%), Vanderbijlpark, Johannesburg Lakeside Mall, Benoni, Johannesburg Greenacres, Greenacres, Port Elizabeth Bayside Mall, Table View, Cape Town La Lucia Mall, La Lucia, Durban Kolonnade (50%), Montana Park, Pretoria The Constantia Village, Constantia, Cape Town Sub Total Balance of the sector TOTAL FOR THE SECTOR LEASE EXPIRY (% OF GLA) TOP 10 TENANTS LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) GLA (1) m² Edcon Holdings Ltd The Foschini Group Ltd Shoprite Holdings Ltd Mr Price Group Ltd Pick n Pay Stores Ltd Pepkor Holdings 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) Vacant Monthly By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond Ranked in terms of gross monthly rental. Vacant Monthly By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond

67 ANNEXURE 16: OFFICE OVERVIEW RSA TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm Investec, 100 Grayston Drive, Sandton, Johannesburg The Woodlands, Woodmead, Johannesburg The Place, Sandton, Johannesburg Constantia Office Park, Roodepoort, Johannesburg Inanda Greens, Wierda Valley, Sandton, Johannesburg Harrowdene Office Park, Woodmead, Johannesburg Growthpoint Business Park, Midrand MontClare Place, Claremont, Cape Town Turbine Square Hall, Newtown, Johannesburg Country Club Estate, Woodmead, Johannesburg Sub Total Balance of the sector TOTAL FOR THE SECTOR LEASE EXPIRY (% OF GLA) GLA m² TOP 10 TENANTS GLA (1) m² Investec Bank Ltd Deloitte (South Africa) Transnet Absa Bank Ltd Netcare Ltd Telkom Ltd EOH Holdings Ltd Anglogold Ashanti Ltd MTN Group Ltd Hatch Goba (Pty) Ltd Sub Total Balance of the sector TOTAL FOR THE SECTOR (excluding vacancies) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) Vacant Monthly By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond Ranked in terms of gross monthly rental. Vacant Monthly By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond

68 ANNEXURE 17: INDUSTRIAL OVERVIEW RSA TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m² Growthpoint Industrial Estate, Meadowdale, Germiston Hilltop Industrial Estate, Elandsfontein, Johannesburg Montague Business Park (25%), Montague Gardens, Cape Town Isobar, Isando, Kempton Park, Johannesburg Adcock Ingram, Midrand Rivonia Crossing 2, Sunninghill, Sandton Omni Park, Aeroton, Johannesburg N1 Business Park (20%), Midrand Central Park - Cape Town, Elsiesrivier, Cape Town Greenfield Industrial Park, Airport Industrial, Cape Town Sub Total Balance of the sector TOTAL FOR THE SECTOR LEASE EXPIRY (% OF GLA) TOP 10 TENANTS GLA (1) m² The Bidvest Group Ltd Adcock Ingram Holdings Ltd Scania SA (Pty) Ltd Consolidated Steel Industries (Pty) Ltd Distell Ltd Allied Electronic Corporation Ltd Imperial Group Ltd Pioneer Foods Ltd Barloworld Ltd Avon Justine (Pty) Ltd Sub Total Balance of the sector TOTAL FOR THE SECTOR (excluding vacancies) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) Vacant Monthly By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond Ranked in terms of gross monthly rental. Vacant Monthly By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond

69 ANNEXURE 18: GLA & VACANCY RECONCILIATION RSA TOTAL GLA m² VACANT AREA m² VACANCY % Balance as at 1 July GLA adjustments Disposals ( ) (9 645) 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 year under review (FY15: 19.7%). 2. Retention % of 68.7% compared to 65.5% for the year to FY15. 69

70 ANNEXURE 19: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO PROPERTY PORTFOLIO BY VALUE PROPERTY PORTFOLIO BY GLA DEVELOPED VS. UNDEVELOPED BY VALUE NET PROPERTY INCOME Retail 53% Office 24% Hotel & Residential 11% Fishing & Industrial 6% Retail 23% Office 25% Hotel & Residential 24% Fishing & Industrial 28% Undeveloped 6% Developed 94% Retail 54% Office 19% Hotel & Residential 18% Fishing & Industrial 9% Bulk 6% 70

71 ANNEXURE 20: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%) Developments and Capital Expenditure (1) SECTOR ESTIMATED COMPLETION No.5 Silo PwC and Werksmans Office Jul ,0 Grain Silo Zeitz MOCAA and The Silo Hotel Office & Hotel Dec ,0 Waterway House (BAT, EY & Ferrari) Office & Retail Mar ,0 No.6 Silo Radisson Red Hotel Hotel Jun ,0 Operational capital expenditure Retail Various 31,0 Other below R30,0m Various Various 86,0 Total 420,0 FY16 Rm Commitments No.6 Silo Radisson Red Hotel Hotel Jun ,3 Waterway House (BAT, EY & Ferrari) Office & Retail Mar ,2 No.3 Silo Residential for sale (2) Residential Mar ,0 Grain Silo Zeitz MOCAA and The Silo Hotel Office & Hotel Dec ,6 Other below R100,0m Various Various 78,9 Total 483,0 1. The average yield for developments is 7.0% - 9.0% on a fully let basis. 2. Classified as inventory; R77,5m development expenditure spent in FY16. 71

72 ANNEXURE 21: NET PROPERTY & DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%) FY16 Rm FY15 Rm INCREASE/ (DECREASE) Gross property revenue % Property expenses (177) (154) 14.9% Net property income % Other operating expenses (20) (16) 25.0% Net finance (costs)/income (11) (20) (45.0%) Other non-distributable amounts (2) 5 (140.0%) Distributable income % Adjustments (33) (13) Breakwater (9) (1) H&M and Hamleys (15) - Other developments (9) (12) Adjusted like-for-like distributable income % 72

73 ANNEXURE 22: V&A WATERFRONT OVERVIEW TOP 10 TENANTS (100%) GLA (1) m² LEASE EXPIRY (% OF GLA) Allan Gray (Pty) Ltd Nedbank Group Ltd Legacy Hotels Edcon Holdings Ltd Tourvest Holdings (Pty) Ltd Sun International Hotels Vacant By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond Newmark Hotels 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 FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond LEASE EXPIRY (% OF GROSS MONTHLY RENTAL) Ranked in terms of gross monthly rental. 73

74 ANNEXURE 23: 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) (16 792) New letting of vacant space (10 923) Leases terminated Balance as at 30 June % % of opening balance GLA expired during the year under review (FY15: 5.0%). 2. Retention % of 82.3% compared to 92.7% for the year to FY15. 74

75 ANNEXURE 24: SPLIT OF GOZ PROPERTY PORTFOLIO VALUE GLA VALUE GLA Office 56% Industrial 44% Office 21% Industrial 79% Queensland 27% Victoria 35% South Australia 7% New South Wales 20% Western Australia 5% ACT 5% Tasmania 1% Queensland 17% Victoria 52% South Australia 11% New South Wales 10% Western Australia 7% ACT 2% Tasmania 1% 75

76 ANNEXURE 25: ACQUISITIONS GOZ ACQUISITIONS SECTOR PURCHASE PRICE Rm PURCHASE PRICE (1) AUDm 1-3 Pope Court, Beverley, South Australia Industrial 203,0 22,3 34 Reddalls Road, Kembla Grange, New South Wales Industrial 212,4 21,6 Building C, 211 Wellington Road, Mulgrave, Victoria Office 218,7 21,4 255 London Circuit, Canberra, Australian Capital Territory Office 849,9 73,7 75 Dorcas Street, South Melbourne, Victoria Office 1 925,9 175,3 TOTAL 3 409,9 314,3 1. Purchase price is at acquisition date excluding revaluation and development expenditure. 76

77 ANNEXURE 26: DEVELOPMENTS & COMMITMENTS GOZ DEVELOPMENTS AND CAPITAL EXPENDITURE SECTOR ESTIMATED COMPLETION DATE Building B, 211 Wellington Road, Mulgrave, Victoria Office Dec ,3 28,3 Other Various 155,0 12,2 TOTAL 441,3 40,5 COMMITMENTS Building C, 211 Wellington Road, Mulgrave, Victoria Office Sep ,1 30,0 Other Various 165,6 15,0 TOTAL 496,7 45,0 FY16 Rm FY16 AUDm 77

78 ANNEXURE 27: NON-CURRENT ASSETS HELD FOR SALE GOZ PROPERTIES HELD FOR SALE SECTOR 28 Bilston Drive, Wodonga, Victoria Industrial 763,8 69,2 99 and William Angliss Drive, Laverton North, Victoria Industrial 305,8 27, Robinsons Road, Ravenhall, Victoria Industrial 298,0 27,0 365 Fitzgerald Road, Derrimut, Victoria Industrial 196,5 17,8 670 Macarthur Avenue, Pinkenba, Queensland Industrial 109,4 9,9 TOTAL 1 673,5 151,6 FY16 Rm FY16 AUDm 78

79 ANNEXURE 28: NET PROPERTY INCOME ANALYSIS GOZ FY16 AUDm FY15 AUDm INCREASE / (DECREASE) Gross property revenue 208,6 197,2 5.8% Property expenses (27,5) (25,4) 8.3% Net property income 181,1 171,8 5.4% Adjustments (12,2) (1,1) Acquisitions and developments (12,2) (0,5) Disposals - (0,6) Adjusted like-for-like net property income 168,9 170,7 (1.1%) Office 82,6 87,0 (5.1%) Industrial 86,3 83,7 3.1% 79

80 ANNEXURE 29: GOZ OVERVIEW FAIR VALUE GLA TOP 10 PROPERTIES BY VALUE Rm m² 1 Charles Street, Parramatta, NSW Distribution Street, Larapinta, QLD Dorcas Street, South Melbourne, VIC Colquhoun Road, Perth Airport, WA Building C, Pacific Highway, Artarmon, NSW Sandgate Road, Nundah, QLD Ann Street, Brisbane, QLD CB1, 22 Cordelia Street, South Brisbane, QLD Mort Street, Canberra, ACT Swan Street (Building 2), Richmond, VIC Sub Total Balance of GOZ TOTAL FOR GOZ GLA (1) TOP 10 TENANTS m² Woolworths NSW Police Department Commonwealth of Australia GE Capital Finance Australasia Linfox Jacobs Group Energex Australia and New Zealand Banking Group Fox Sports Star Track Sub Total Balance of GOZ TOTAL FOR GOZ (excluding vacancies) Vacant By FY17 By FY18 By FY19 By FY20 By FY21 FY22 and beyond Ranked in terms of gross monthly rental. LEASE EXPIRY (% OF INCOME) 80

81 ANNEXURE 30: GLA & VACANCY RECONCILIATION GOZ TOTAL GLA m 2 VACANCY (1) % Balance as at 1 July GLA adjustments Disposals - Acquisitions, developments and extensions Balance as at 30 June Vacancy ratio is based on income and not GLA (when compared to RSA). 81

82 The Place, Sandton THANK YOU