INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

Transcription

1 INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

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3 AGENDA SLIDE INVEST DEVELOP GROW GENERAL OVERVIEW 3 PORTFOLIO OVERVIEW 7 INVESTMENTS SOUTH AFRICA 8 INVESTMENTS NON-SA 13 DEVELOPMENTS 18 FINANCIAL RESULTS 28 LOOKING AHEAD 38 QUESTIONS & ANSWERS 42 APPENDICES GENERAL OVERVIEW 1

4 YEAR-ON-YEAR HIGHLIGHTS INVEST 3 YEAR ROLLING ADJ NAVPS CAGR* 14.43% Dec 2016: R21.35 Adj NAVPS Dec 2013: R14.25 Adj NAVPS ADJ NAVPS CAGR* FROM INCEPTION 27.69% Dec 2016: 27.69% Dec 2015: 30.91% DEVELOP GROW NET RENTAL INCOME % Dec 2016: R million Dec 2015: R million TOTAL OPERATING COSTS OF GROSS ASSETS 0.46% Dec 2016: 0.46% Dec 2015: 0.38% WATERFALL BULK COMPLETED % Dec 2016: m² Dec 2015: m² GROUP GEARING (LOAN TO VALUE) 41.40% Dec 2016: 41.40% Dec 2015: 39.69% * CAGR: Compounded Annual Growth Rate ATTACQ HISTORY R billion Change 30 25% % 15.5% 19.1% 16.1% 17.7% 17.0% 14.4% 20% 15% % 11.7% 10% Jun 2009 Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Dec % 0% TOTAL ASSETS ATTRIBUTABLE NAV 3 YEAR ROLLING ADJUSTED NAVPS CAGR - 5-2

5 STRATEGIC EXECUTION HIGHLIGHTS DECEMBER 2015 TO DECEMBER 2016 INVEST DEVELOP GROW Invested in partnerships with Equites, Zenprop, Barrow, Artisan, Atterbury Europe completed 6 buildings in SA, adding primary GLA of m² 11 bursaries via Atterbury Trust Contributions made to Columba Leadership Programme, Property Point and CEO Sleepout Vacancies reduced from 3.4% to 2.6% Normalised expenses to income ratio (excl. utilities) 15.9% A further m² of bulk jointly secured with Sanlam Properties at Waterfall Diversified portfolio Internalised development management MAS revised its investment strategy Successful opening of Mall of Africa Average trading density of R2 777 m² (opening to December 2016) >1.1 million visitors per month 1.2 million m² development rights in the centre of Gauteng, of which m² bulk is serviced Completed 3 rooftop PV plants with a total capacity of kwp Another 2 installations underway 8 Green rated buildings (by design) and 1 Gold LEED rated building Sold: Great Westerford (50%), MAS shares, The Club, Geelhoutboom, Atterbury, R1.6 bn 8 industrial buildings (Equites deal) capital recycled High quality directly held property portfolio Total operating costs 0.46% of gross assets Rebranded to communicate our vision and offering to the market WALE 6.5 years 94.7% collection rate NOTES 3

6 PORTFOLIO OVERVIEW SOUTH AFRICA 69% 66% Dec % NON-SA 21% Jun % DEVELOPMENTS 13% Percentages based on gross assets SOUTH AFRICA 69% INVESTMENTS SOUTH AFRICA 4

7 SA PORTFOLIO Portfolio value by sector 58.2% 58.4% RETAIL Dec % 4.9% HOTEL LIGHT INDUSTRIAL 2.4% 6.1% Jun 2016 OFFICE AND MIXED-USE 34.6% 33.1% Portfolio value by location 80.3% GAUTENG Dec % NORTH WEST 6.9% Jun % 12.9% WESTERN CAPE 13.0% Percentages based on IFRS values, excluding developments under construction, development rights and vacant land NOTES 5

8 QUALITY PROPERTY PORTFOLIO VACANCIES 2.6% Dec 2016: 2.6% Dec 2015: 3.4% COLLECTION RATE^ 94.7% Dec 2016: 94.7% Dec 2015: 95.8% WALE* PROFILE 6.5 YEARS Dec 2016: 6.5 years Dec 2015: 6.8 years RENTAL ESCALATIONS # 7.6% Dec 2016: 7.6% Dec 2015: 7.9% 1. Eikestad Mall 2. MooiRivier Mall 3. Mall of Africa 4. Garden Route Mall 5. Brooklyn Mall NON-GLA INCOME +105% Dec 2016: R8.2 million Dec 2015: R4.0 million RENTAL ~ R / m² R158.8 Dec 2016: R158.8 / m² Dec 2015: R138.3 / m² * WALE: Weighted average lease expiry profile ^ Collection rate based on total arrears as a percentage of rental income # Weighted average rental escalations ~ Gross weighted average rental R / m² per month (basic rental + operating cost recoveries) MALL OF AFRICA Successfully opened 28 th April shoppers on opening day >1.1 million average shoppers per month (opening to December 2016) R2 777 m² average trading density (opening to December 2016) Average rental (including anchors) R233 / m² National retailers indicated their Mall of Africa branch trades in top 5 of their SA portfolio Won 2016 Spectrum Award for the best retail development in the category of new regional and super-regional shopping centres Dedicated Gautrain bus route istore opened with the launch of iphone 7 and sold the most phones across SA stores

9 TRADING DENSITIES R / m² % % % % 5% % (2%) % Brooklyn Mall Eikestad Precinct Garden Route Mall Glenfair Lynnwood Bridge Shopping Centre - Retail Mall of Africa MooiRivier Mall Newtown Junction Waterfall Corner 12 MONTHS AVERAGE ENDING DEC MONTHS AVERAGE ENDING DEC 2015 The Mall of Africa has been trading since 28 April 2016, which equates to 8 months NOTES 7

10 NON-SA 19% INVESTMENTS NON-SA MAS 38.6% held by Attacq at year end Attacq equity accounts for MAS R2.4 billion equity accounted value vs market value of R3.3 billion MAS strategy: focus on income and distribution per share growth Historical markets: Western Europe; Germany, UK and Switzerland Expanded investment focus to Central and Eastern Europe via Prime Kapital Investment JVs: Development JV focusing on new developments Investment JV focusing on accretive acquisitions HIGHLIGHTS Distribution per share increased by 19.3% Rental income increased by 80.9% vs December % increase in investment property vs June 2016 Nova Park acquisition in Poland under Prime Kapital JV Balance sheet optimisation - drew down on 80.4 million debt MAS New Waverley development

11 CYPRUS PROPERTY SHACOLAS EMPORIUM PARK THE MALL OF ENGOMI Location Nicosia Nicosia GLA m² m² Value million 37.8 million Vacancy 2.3% 0.0% Attacq effective holding 48.6% 48.5% Potential expansion m² m² Attacq has a 48.8% shareholding in Atterbury Cyprus Atterbury Cyprus holds 99.7% of Shacolas Emporium Park and 99.5% of the Mall of Engomi Cyprus economy returned to growth and interest rates reduced Both centres are trading well Planning approval process underway for Mall of Cyprus expansion Mall of Engomi NOTES 9

12 SERBIA PROPERTY UŠĆE IMMO KANEM (H&M) OAZA SUBREAL SUBOTICA Location Belgrade Belgrade Belgrade Belgrade Belgrade Subotica GLA m² m² m² 574 m² m² m² Vacancy 0.9% 0.0% 0.0% 0.0% 0.0% 0.0% Attacq effective holding 12.5% 12.5% 12.5% 12.5% 12.5% 12.5% Attacq has a 25.0% shareholding in Atterbury Serbia Atterbury Serbia acquired a 33.3% shareholding in existing portfolio of 5 properties with a total value of million in December 2015 Subotica added to portfolio April 2016 Additional 16.7% acquired in portfolio by Atterbury Serbia during the current period Prime portfolio asset is the Ušće Shopping Centre, Serbia s largest mall Seventh retail asset, Borca ( m²) acquired in January / 50 development fund capitalised with 40.0 million to undertake retail developments - land acquired for development, in advanced stages of acquiring a further site AFRICA PROPERTY GLA VALUATION (USD 000) ATTACQ SHARE (USD 000) VALUE (USD 000) VACANCY % Operational portfolio summary* m² / m² operational malls Portfolio includes dominant assets in major cities of Accra, Lusaka and Lagos: Accra Mall Manda Hill Ikeja City Mall Weak commodity cycle, strong USD and high inflation challenges continue Focus remains: Delivering Kumasi City Mall and settling West Hills Mall and Achimota Mall Managing assets through the cycle Improving liquidity in the portfolio * Data provided at 100% level Attacq owns 31.25% of AttAfrica and 25% of Ikeja City Mall West Hills Mall 10

13 DEVELOPMENTS 12% DEVELOPMENTS NOTES 11

14 WATERFALL SECOND WAVE What next after Mall of Africa? Catalyst for growth: Mall of Africa and 1.3 Ha Waterfall Park Projected growth of office space at Waterfall City ±30% p.a. until 2020 / 21 Examples Benefits of Waterfall Central location Infill development Excellent access Unique urban design and infrastructure 1.3 Ha Waterfall Park Corporate consolidation Jul 2008 Economic benefit 1.2 million m² remaining bulk ± m² serviced development rights Sep 2016 Source: Urban Studies Newsletter, June DEVELOPMENTS UNDER CONSTRUCTION Gateway West Primary gross lettable area: ± m² Segment: office Gateway West Estimated value on completion: ±R387.6 million

15 DEVELOPMENTS UNDER CONSTRUCTION CONTINUED PwC Tower and Annex* Primary gross lettable area: ± m² Segment: office Estimated value on completion: ±R1.6 billion PwC * Data provided at 100% level Attacq has a 75% undivided share NOTES 13

16 FUTURE DEVELOPMENTS Corporate Campus Primary gross lettable area: ± m² Segment: office 50% JV partnership with Zenprop Corporate Campus First tenant secured Development of Phase I commenced FUTURE DEVELOPMENTS CONTINUED The Atria Primary gross lettable area: ± m² The Atria Segment: office and mixed-use 2 office buildings 1 residential tower with ±120 apartments 1 hotel 50% JV partnership with Barrow Group

17 FUTURE DEVELOPMENTS CONTINUED Sanlam joint ventures m² of additional bulk Attacq holds 50.0% of the retail JV* Attacq holds 20.0% of the industrial JV and has the right to increase its shareholding to 50.0% Economies of scale Availability of bridging funding Attacq appointed as the developer and asset manager LOGISTICS PRECINCT DISTRIBUTION CAMPUS WATERFALL CITY MALL OF AFRICA JV DEAL RETAIL RETAIL AND INDUSTRIAL / WAREHOUSING INDUSTRIAL / WAREHOUSING * JV: joint venture NOTES 15

18 FUTURE DEVELOPMENTS CONTINUED Waterfall Point Total saleable area: ±9 584 m² Segment: office (sectional title) Total development profit: ±R25.0 million Waterfall Point FUTURE DEVELOPMENTS CONTINUED New warehouse secured with multi-national Primary gross lettable area: ± m² Segment: light industrial Aiming to commence construction by end March 2017 Location BMW

19 FUTURE DEVELOPMENTS CONTINUED Shortlisted for another corporate consolidation Primary gross lettable area: ± m² Segment: office Decision pending: to be awarded soon Location NOTES 17

20 FINANCIAL RESULTS EQUITY MOVEMENT NAV bridge (R million) (66.0) 73.1 (326.5) Jun 2015 Share issues A-F-S reserve Distributable reserve FCTR Share-based payment reserve Jun 2016 Share issues A-F-S reserve Distributable reserve FCTR Share-based payment reserve Dec 2016 NAVPS bridge (R) (0.09) 0.10 (0.51) Jun 2015 Share issues A-F-S reserve Distributable reserve FCTR Share-based payment reserve Jun 2016 Share issues A-F-S reserve Distributable reserve FCTR Share-based payment reserve Dec

21 INCOME STATEMENT TOTAL NET PROFIT (R 000) DEC 2016 DEC 2015 % CHANGE Completed buildings (7.6) Developments* (78.9) International ( ) (158.1) Corporate (71.5) Total net profit (99.7) Decrease due to the completion of the Mall of Africa in April 2016 The loss is due to impairments of investments in Ikeja City Mall, AttAfrica and Nova Eventis as well as foreign exchange losses * Developments under construction, development rights, infrastructure and services and land NOTES 19

22 NORMALISED NET PROFIT R million % R476.6 m 10.0% 3.0% 3.4% COMPLETED BUILDINGS Total comprehensive income Net forex losses Impairment of Ikeja City Mall Impairment of Nova Eventis Impairment of investments Loss from mark-to-market on swaps Loss on PwC Sunninghill Normalised comprehensive income DEVELOPMENTS CORPORATE INTERNATIONAL BALANCE SHEET R 000 DEC 2016 JUN 2016 % CHANGE Investment properties^ (0.3) Investments*^ (4.6) Other assets (9.2) Total assets (1.8) Total interest bearing borrowings (0.1) Total non-interest bearing borrowings (7.1) Total liabilities (1.5) Equity attributable to owners of the holding company (2.2) Less: non-controlling interest (16 673) (13 201) 26.3 Equity (2.2) Disposed of properties to the value of R940.7 m Decrease due to foreign exchange losses and impairments Decrease in cash of R225.7 m and trade and other receivables of R69.4 m Decrease in trade and other payables of R164.5 m ^ Includes non-current assets held for sale * Includes equity and net loans advanced

23 BALANCE SHEET TOTAL ASSETS (R 000) DEC 2016 JUN 2016 % CHANGE Completed buildings Developments* (10.1) International (10.2) Corporate (2.1) Total assets (1.8) Increase mainly due to completion of Mall of Africa and fair value adjustments The reduction is due to the completion of four properties in Waterfall Decrease due to foreign exchange losses and impairments NET ASSET VALUE (NAV) (R 000) DEC 2016 JUN 2016 % CHANGE Completed buildings Developments* (15.8) International (10.8) Corporate ( ) ( ) (12.6) Total NAV (2.2) * Developments under construction, development rights, infrastructure and services and land NOTES 21

24 INVESTMENT PROPERTIES INCLUDING NON-CURRENT ASSETS HELD FOR SALE R million (242.0) (940.7) (286.3) Jun 2015 Sold Capex FVA - development under construction FVA - development rights FVA - completed Jun 2016 Sold Capex FVA - development under construction FVA - development rights FVA - completed Dec WEIGHTED AVERAGE CAPITALISATION RATES SEGMENT CAP RATES DEC 2016 CAP RATES DEC 2015 Office and mixed-use 7.76% 7.84% Industrial 7.75% 7.75% Hotel 8.07% 8.13% Retail 6.92% 6.89% Total portfolio 7.32% 7.35% We have sold Great Westerford during the period which had a cap rate of 8.75% City Lodge Waterfall s cap rate improved by 0.25% year-on-year Year-on-year Newtown Junction and Brooklyn Mall cap rates increased by 0.25% respectively

25 INVESTMENTS R million Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun MAS Cyprus AttAfrica Serbia Ikeja City Mall PwC partnership Nova Eventis Atterbury Namibia Artisan Winterrobin EA Waterfall Logistics Other EQUITY LOAN NOTES 23

26 INTEREST BEARING DEBT DEC 2016 JUN 2016 Gearing 41.4% 39.9% Weighted average cost of debt 9.4% 9.2% Total hedges as a % of total committed facilities 80.0% 79.5% Increased gearing due to debt used to fund the R616.3 million capex spend during the last six months Increase in Dollar funding interest rates and general increase in JIBAR rates There are forward starting hedges in place for developments, allowing for a reasonable level of interest rate certainty and income visibility once the developments are completed 29.3% 6.3% 0.7% INVESTEC BANK NEDBANK 28.0% 6.3% 0.3% RMB Dec 2016 Jun 2016 SANLAM 44.7% ABSA 9.5% 9.5% STANDARD BANK 3.0% 3.1% 6.5% BANK OF CHINA 7.8% 45.0% LOOKING AHEAD 24

27 LOOKING AHEAD Risks Political uncertainty in SA Lack of local services: power and water Tenants defaulting Persistent low demand for commodities Market volatility - Brexit and USA Key focus areas Waterfall Distribution and logistics Corporate consolidation and leverage the opening of Mall of Africa Optimise the existing SA portfolio Consolidation and stabilisation of the African portfolio Optimise balance sheet / recycle capital / sale of non-core assets Gateway West NOTES 25

28 LOOKING AHEAD CONTINUED Potential going forward Short term Distribution from MAS Value upliftment from Mall of Africa Newly secured deals Long term Owning a city Quality portfolio Diversification in place Mall of Africa - the catalyst Allandale Building BENEFITS BEYOND OUR BOTTOM LINE Property Point Contributed nearly R3 million towards current intake (2016) 8 businesses graduated on 22 November 2016 Average revenue growth of 35.8%, created 65 full-time jobs Columba Leadership Contributed R (2016: R ) Total contribution over four years: R1.1 million Benefitting 89 learners and 9 educators in total New Grade 10 intake of 12 learners and 3 educators Targeting schools in Olievenhoutbosch Atterbury Trust Bursaries for tertiary education Financial support to various schools in Pretoria West Allocated contribution R (2016: R ) Attacq the Future Bana Ba Rona ECD Centre

29 QUESTIONS & ANSWERS NOTES 27

30 DISCLAIMER This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including statements with respect to the company s business, financial condition and results of operations. These statements, which contain the words anticipate, believe, intend, estimate, expect, forecast and words of similar meaning, reflect the directors beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profitforecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness, accuracy or fairness. This information is still in draft form and has not been legally verified. The financial information included herein is in draft form and unaudited. The company, its advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current the information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is given by the company, or any of its subsidiary undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information APPENDICES 28

31 YEAR-ON-YEAR KPIs KPI DEC months DEC months JUN months 3 year rolling adjusted NAVPS CAGR¹ >15% Adjusted head office cost <0.5% Group gearing (loan to value) <60% Group interest cover ratio >1.2 times Minimum cash drag <5.0% Debt fixed (% hedged of total committed facilities) >70% Waterfall roll-out m² / bi-annually CAGR: Compounded Annual Growth Rate NOTES 29

32 NAV EXPLAINED R 000 DEC 2016 DEC 2015 % CHANGE JUN 2016 % CHANGE South Africa Non-SA assets (22.7) (12.6) Total NAV (3.1) (2.2) Non-SA assets: equity MAS (10.7) (0.3) Africa (AttAfrica and Ikeja City Mall) $ (37.9) (13.2) Nova Eventis (45.1) (45.7) MAS is equity accounted in our group results at a value of R2.4 billion (31 December 2015: R3.1 billion) The market value as at 31 December 2016 is calculated as R3.3 billion (31 December 2015: R3.4 billion) Included in MAS results is a currency loss of 28.5 million between 31 December 2015 and 31 December 2016 due to the weakening of the Pound as a result of Brexit FAIR VALUE ADJUSTMENTS R 000 DEC 2016 DEC 2015 % CHANGE Completed buildings (25.4) Developments under construction (81.4) Development rights and land ( ) (114.1) Other financial assets / liabilities (28 524) (112.4) Other investments - (20 670) (100.0) Total fair value adjustments (61.4) Included in the December 2015 fair value for Developments under construction is R364.0 million development profit on Mall of Africa For December 2016 additional development rights were obtained versus December 2015 where the roll-out period of land was extended Nenegate had a positive effect on our December 2015 asset swap valuations R (200) (400) Dec 2016 Dec 2015 OTHER INVESTMENTS OTHER FINANCIAL ASSETS / LIABILITIES DEVELOPMENT RIGHTS AND LAND DEVELOPMENTS UNDER CONSTRUCTION COMPLETED BUILDINGS

33 INTEREST BEARING DEBT R million % % % % % 0 < 1 year 1 to 3 years 3 to 5 years 5 to 7 years > 7 years 0% DEBT MATURITY HEDGE MATURITY DEBT MATURITY PERCENTAGE HEDGE MATURITY PERCENTAGE NOTES 31

34 PORTFOLIO AND INVESTMENTS OVERVIEW AS AT 31 DECEMBER 2016 South Africa RETAIL PORTFOLIO INDUSTRIAL PORTFOLIO OFFICE AND MIXED-USE PORTFOLIO DEVELOPMENTS Brooklyn Mall, Pretoria # 25% Amrod, Waterfall 100% Altech, Waterfall # xx 50% OFFICE AND MIXED-USE PORTFOLIO Eikestad Precinct, Stellenbosch # 80% Dimension Data, Waterfall 100% Aurecon, Pretoria 100% Gateway West 100% Garden Route Mall, George 100% Massbuild, Waterfall 100% Brooklyn Bridge Office Park, Pretoria xx 100% PwC Tower and Annex, Waterfall # 75% Glenfair Boulevard, Pretoria 100% Torre Industries, Waterfall 100% Cell C Campus, Waterfall 100% INDUSTRIAL PORTFOLIO Lynnwood Bridge, Pretoria 100% Group Five, Waterfall 100% K101 Warehouse 100% Mall of Africa, Waterfall # 80% Lynnwood Bridge, Pretoria 100% LAND AND DEVELOPMENT RIGHTS MooiRivier Mall, Potchefstroom 100% Majestic Offices, Johannesburg 50% Le Chateau** 100% Newtown Junction, Johannesburg 50% Maxwell Office Park, Waterfall # 50% Development rights, Waterfall** 100% Waterfall Corner, Waterfall 100% Colgate Waterfall Lifestyle, Waterfall 100% Mac Mac House Magwa House Westwood Mall, Durban^ 34.4% Att House Golder KEY HOTEL PORTFOLIO Premier Honda ** Vacant land ^ Accounted for as an investment in associate City Lodge, Johannesburg 50% Newtown Junction, Johannesburg 50% ^^ Accounted for as an investment City Lodge, Pretoria 100% Novartis, Waterfall 100% # xx Undivided share Held for sale City Lodge, Waterfall 100% PwC, Sunninghill 100% All shareholdings represent Attacq s effective interest PORTFOLIO AND INVESTMENTS OVERVIEW AS AT 31 DECEMBER 2016 CONTINUED Non-SA markets RETAIL PORTFOLIO AttAfrica^ Accra Mall, Accra, Ghana 15.0% Achimota Mall, Accra, Ghana 23.9% West Hills Mall, Accra, Ghana 14.3% Kumasi City Mall, Kumasi, Ghana 23.9% Manda Hill, Lusaka, Zambia 15.9% Atterbury Serbia^ Ušće Mall, Belgrade, Serbia 12.5% Immo, Belgrade, Serbia 12.5% Kanem, Belgrade, Serbia 12.5% Oaza, Belgrade, Serbia 12.5% Subreal, Belgrade, Serbia 12.5% Subotica, Subotica, Serbia 12.5% Borca Retail Park, Belgrade, Serbia 12.5% Development fund, Belgrade, Serbia 12.5% Ikeja City Mall, Lagos, Nigeria^ 25.0% RETAIL PORTFOLIO Atterbury Cyprus^ Shacolas Emporium Park, Nicosia, Cyprus 48.6% Mall of Engomi, Nicosia, Cyprus 48.5% MAS (Germany, UK and Switzerland)^ 38.6% Nova Eventis, Leipzig, Germany^^ 19.9% KEY ** Vacant land ^ Accounted for as an investment in associate ^^ Accounted for as an investment # Undivided share xx Held for sale All shareholdings represent Attacq s effective interest The Grove Mall of Namibia, Windhoek, Namibia^ 25.0% Ušće Mall 32

35 PORTFOLIO OVERVIEW Retail portfolio PROPERTY NAME LOCATION KEY TENANTS PRIMARY GLA # m² VALUATION R 000 BROOKLYN MALL* Pretoria Checkers, Dis-Chem, Game, Woolworths EIKESTAD PRECINCT^ Stellenbosch Checkers, Woolworths, Food Lovers Market, Game GARDEN ROUTE MALL George Dis-Chem, Game, Pick n Pay, Woolworths GLENFAIR BOULEVARD Pretoria Dis-Chem, Shoprite Checkers, SuperSpar LYNNWOOD BRIDGE - RETAIL Pretoria Planet Fitness, The Pro Shop, Woolworths MALL OF AFRICA^ Waterfall Game, Shoprite Checkers, Woolworths MOOIRIVIER MALL Potchefstroom Game, Shoprite Checkers, Woolworths NEWTOWN JUNCTION Johannesburg Pick n Pay, Shoprite Checkers, Ster Kinekor WATERFALL CORNER Waterfall Clicks, Shoprite Checkers, Woolworths WATERFALL LIFESTYLE Waterfall Bounce, Virgin Active TOTAL Hotel portfolio PROPERTY NAME LOCATION LEASE EXPIRY PRIMARY GLA # m² VALUATION R 000 CITY LODGE - LYNNWOOD Pretoria CITY LODGE - NEWTOWN Johannesburg CITY LODGE - WATERFALL Waterfall TOTAL VALUE R / m² VALUE R / m² # Primary GLA refers to the main rental generating GLA, e.g. warehouse, industrial, hotel, shop, office, ATM, mezzanine Values provided above reflect Attacq s undivided share in the property: *25%; ^80% NOTES 33

36 PORTFOLIO OVERVIEW CONTINUED Office and mixed-use portfolio PROPERTY NAME LOCATION KEY TENANTS # Primary GLA refers to the main rental generating GLA, e.g. warehouse, industrial, hotel, shop, office, ATM, mezzanine Values provided above reflect Attacq s undivided share in the property: *50% LEASE EXPIRY PRIMARY GLA # m² VALUATION R 000 ALLANDALE BUILDING Waterfall Schneider Electric, Wisetech, TransAfrica Mixed ALTECH* Waterfall Altech BROOKLYN BRIDGE OFFICE PARK Pretoria Counsel Chambers, SARS Mixed CELL C CAMPUS Waterfall Cell C GROUP FIVE Waterfall Group Five LYNNWOOD BRIDGE - AURECON Pretoria Aurecon LYNNWOOD BRIDGE - BLOUKRANS Pretoria Water Research Commission Mixed LYNNWOOD BRIDGE - KAAIMANS Pretoria Citadel Mixed LYNNWOOD BRIDGE - OFFICES Pretoria Adams & Adams, Sanlam Mixed MAXWELL OFFICE PARK - ATT HOUSE* Waterfall Attacq, Atterbury, Cipla Mixed MAXWELL OFFICE PARK - COLGATE* Waterfall Colgate MAXWELL OFFICE PARK - GOLDER* Waterfall Golder Associates MAXWELL OFFICE PARK - HONDA* Waterfall Honda, City Connect Mixed MAXWELL OFFICE PARK - MAC MAC HOUSE* Waterfall Black & Veatch, Strategic Solution Architects Mixed MAXWELL OFFICE PARK - MAGWA HOUSE* Waterfall Diageo, DOW Mixed MAXWELL OFFICE PARK - PREMIER* Waterfall Premier Foods NEWTOWN JUNCTION NEDBANK Johannesburg Nedbank NOVARTIS Waterfall Novartis PWC SUNNINGHILL Sunninghill PwC THE MAJESTIC Johannesburg Nedbank TOTAL VALUE R / m² PORTFOLIO OVERVIEW CONTINUED Industrial portfolio PROPERTY NAME LOCATION LEASE EXPIRY PRIMARY GLA # m² VALUATION R 000 VALUE R / m² AMROD Waterfall DIMENSION DATA Waterfall MASSBUILD DISTRIBUTION CENTRE Waterfall TORRE INDUSTRIES Waterfall TOTAL Developments PROPERTY NAME SECTOR COMPLETION DATE GLA m² % PRE-LET (GLA) TOTAL CAPITAL COST R 000 VALUE ESTIMATE ON COMPLETION R 000 ESTIMATED DEVELOPMENT PROFIT R 000 GATEWAY WEST Office August PWC TOWER AND ANNEX ~ Office January K101 WAREHOUSE Industrial September TOTAL > # Primary GLA refers to the main rental generating GLA, e.g. warehouse, industrial, hotel, shop, office, ATM, mezzanine ~ Values provided above reflect Attacq s undivided share in the property: ~ 75%. Recently secured projects are not included above

37 GLA EVOLUTION m² (14 558) (56 266) Jun 15 Reconfigurations Completed Sold Jun 16 Reconfigurations Completed Sold Dec % 3 Star GBCSA 67.1% 1.9% 13.5% 4.0% 4 Star GBCSA Dec 2016 Jun % 5 Star GBCSA 6.3% 15.4% 1.1% GREEN ELEMENTS Gold LEED NON-GREEN 1.2% 14.3% 62.7% GBCSA: Green Building Council of South Africa NOTES 35

38 PROPERTY AGEING OF GLA GLA (m²) % 45.9% Total GLA Dec 2016: m² Jun 2016: m² % % % % % % % % < 1 year 1 to 2 years 3 to 5 years 6 to 10 years > 10 years AS AT DEC 2016 AS AT JUN LEASE EXPIRY PROFILE GLA (m²) % % 0.2% 4.2% Vacancy Month-to-month HOTEL INDUSTRIAL OFFICE RETAIL TOTAL % 6.0% 7.8%

39 COMPLETED BUILDINGS PROPERTY ALLANDALE BUILDING DIMENSION DATA TORRE INDUSTRIES AMROD Sector Office Industrial Industrial Industrial Location Waterfall Waterfall Waterfall Waterfall Primary GLA m² m² m² m² Value R401.0 million R87.2 million R128.9 million R364.1 million Value / GLA R / m² R / m² R / m² R9 596 / m² Mall of Africa NOTES 37

40 WATERFALL VISIBLE CHANGES Completed buildings Maxwell Office Park Allandale Building Novartis Mall of Africa City Lodge Buildings under construction PwC Tower and Annex Gateway West Infrastructure and more Road infrastructure (Waterfall City) Upgraded Allandale N1 free flow intersection Waterfall Park Imphomphoma substation PV plants on the roofs of: Allandale Building Novartis Mall of Africa Maxwell Office Park 2. Allandale Building and Novartis 3. Mall of Africa 4. City Lodge 5. PwC Tower and Annex WATERFALL BULK m² DEC 2016 % JUN 2016 % Total approved bulk Completed held ( ) (20.1) ( ) (18.6) Completed sold ( ) (15.5) (61 963) (3.3) Under construction (67 682) (3.6) ( ) (7.5) Remaining bulk total Remaining for development Newly secured developments % REMAINING FOR DEVELOPMENT - NEW BULK SECURED 5.2% COMPLETED - HELD 18.6% Dec % COMPLETED - SOLD 3.3% Jun % 3.6% UNDER CONSTRUCTION 7.5% 65.4% REMAINING FOR DEVELOPMENT

41 AFRICA PROPERTY ACCRA MALL* WEST HILLS MALL* MANDA HILL* ACHIMOTA MALL* KUMASI CITY MALL*^ IKEJA CITY MALL Location Accra, Ghana Accra, Ghana Lusaka, Zambia Accra, Ghana Kumasi, Ghana Lagos, Nigeria GLA m² m² m² m² m² m² Vacancy 0.0% 5.9% 6.1% 11.8% # n/a 1.1% Foot count 28 / m² 16 / m² 23 / m² 27 / m² Opening April / m² Attacq effective holding 15.0% 14.3% 15.9% 23.9% 23.9% 25.0% * Held via AttAfrica ^ Proposed size # Opened November 2015 West Hills Mall NOTES 39

42 40 NOTES

43 Directors P Tredoux # * (Chairman) MC Wilken (CEO) M Hamman (CFO) MM du Toit # * HR El Haimer # * KR Moloko # * BT Nagle # * S Shaw-Taylor # * JHP van der Merwe # * LLS van der Watt* # Independent * Non-executive Company Secretary T Kodde Attacq Limited (Incorporated in the Republic of South Africa) (Registration number 1997/000543/06) JSE share code: ATT ISIN: ZAE ( Attacq or the Company or the Group ) Registered office ATT House, 2nd Floor Maxwell Office Park Magwa Crescent West Waterfall City 2090 Postal address PostNet Suite 016 Private Bag X81 Halfway House 1685 Transfer Secretaries Computershare Investor Services Proprietary Limited Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196 (PO Box 61051, Marshalltown, 2107) Sponsor Java Capital GREYMATTER & FINCH # 10869

44 ATT House, 2nd Floor, Maxwell Office Park, Magwa Crescent West, Waterfall City, Waterfall Tel Tel Fax