AGENDA GENERAL OVERVIEW 3 FINANCIAL RESULTS 34 LOOKING AHEAD 46 QUESTIONS & ANSWERS 50 DEVELOPMENTS 26 INVESTMENTS EMERGING MARKETS 11

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2 GENERAL OVERVIEW 3 INVESTMENTS SOUTH AFRICA 7 INVESTMENTS EMERGING MARKETS 11 INVESTMENTS DEVELOPED MARKETS 15 DEVELOPMENTS 26 FINANCIAL RESULTS 34 LOOKING AHEAD 46 QUESTIONS & ANSWERS 50 APPENDICES 52 AGENDA 2

3 GENERAL OVERVIEW 3

4 YEAR-ON-YEAR HIGHLIGHTS ADJUSTED NAVPS +27.6% TOTAL ASSETS +32.4% INTERNATIONAL ASSETS +72.8% NET RENTAL INCOME +25.5% Dec 2015: R21.72 Dec 2014: R17.02 Dec 2015: R27.1 billion Dec 2014: R20.5 billion Dec 2015: R6.4 billion Dec 2014: R3.7 billion Dec 2015: R531.0 million Dec 2014: R423.2 million 4

5 STRATEGIC EXECUTION HIGHLIGHTS Substantial investments into foreign markets Investments into Central and Eastern Europe Serbia: five operational malls, two under construction Cyprus: two malls Expansion of Africa portfolio Further investment into AttAfrica Acquisition of Ikeja City Mall, Nigeria Realisation of Karoo agterskot (R483.9 million) Disposal of non-core investments Investment in Mauritius: profit of R145.0 million Investment in The Pavilion, residential development Birmingham Undivided share in Great Westerford: transfer in progress Completion of 6 buildings in South Africa with total effective GLA of m² Secured further JVs at Waterfall Appointment: Head of Developments 5

6 BUSINESS STRATEGY SOUTH AFRICA 51% * * Percentages based on gross assets. 51% USE BALANCE SHEET TO SECURE AND FUND DEVELOPMENTS INVESTMENTS 75% * DEVELOPMENTS 25% * EMERGING MARKETS 7% * DEVELOPED MARKETS 17% * CREATE PIPELINE INCREASE IN RISK / RETURN PROFILE South Africa Dec % 17% Emerging markets Developed markets 6% 12% Dec % 25% Developments 18% 6

7 INVESTMENTS SOUTH AFRICA South Africa 51% 7

8 SA PORTFOLIO Portfolio value by sector 53.5% 54.0% Retail 2.4% Dec % Hotel Light industrial 2.5% Jun % Office and mixed use 37.1% 37.5% Portfolio value by location 73.7% Gauteng Dec % North West 7.4% Jun % Western Cape 15.9% Based on IFRS values, including developments under construction. 76.7% 8

9 GLA EVOLUTION Jun 2014 Reconfigurations Completed Acquired Jun 2015 Reconfigurations Completed Dec 2015 Green elements 41.7% 41.2% 14.3% Retrofit LED energy efficient lights 13.0% Dec % 3 Star GBCSA 2.3% Jun % 4 Star GBCSA 16.1% 19.0% 19.8% 7.3% 7.6% Non-green 5 Star GBCSA Non-green 9 m² (462)

10 COMPLETED BUILDINGS Property Hilti Stryker Servest Maxwell Office Park Colgate and Mac Mac House^ City Lodge Sector Industrial Industrial Industrial Office Hotel Location Waterfall Waterfall Waterfall Waterfall Newtown GLA m² m² m² m² m² Value (100%) R59.4 million R61.5 million R157.4 million R285.2 million R104.3 million Value / GLA R / m² R / m² R / m² R / m² R / m² ^ Attacq owns a 50% undivided share. 10

11 INVESTMENTS EMERGING MARKETS Emerging markets 7% 11

12 EMERGING MARKETS STRATEGY Target countries coming from a low base Retail specific focus Bigger cities / metropoles Joint venture with local partner with expertise 12

13 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 Value (100%) USD101.4 million USD89.2 million USD153.1 million USD53.0 million Under construction USD155.0 million Status Operational Operational Operational Operational Opening Apr 2017 Operational Attacq effective holding 14.7% 14.1% 15.6% 23.4% 23.4% 25.0% * Held via AttAfrica. ^ Proposed size. 13

14 SERBIA Property Ušće Immo Kanem (H&M) Oaza Subreal Location Belgrade Belgrade Belgrade Belgrade Subotica GLA m² m² m² 574 m² m² Atterbury Serbia holding 33.0% 33.0% 33.0% 33.0% 33.0% Attacq effective holding 8.25% 8.25% 8.25% 8.25% 8.25% Attacq has a 25.0% shareholding in Atterbury Serbia Atterbury Serbia acquired 33.0% shareholding in existing portfolio of five properties with a gross value of million Prime portfolio asset is the Ušće Shopping Centre, Serbia s largest mall Two further properties under construction will be acquired at pre-agreed yields: ± 32.0 million asset value for ± m² 50/50 development fund capitalised with 40.0 million to undertake retail developments in Serbia and neighbouring countries 14

15 INVESTMENTS DEVELOPED MARKETS Developed markets 17% 15

16 CYPRUS Property Shacolas Emporium Park The Mall of Engomi Location Nicosia Nicosia GLA m² m² Value (100%) EUR158.9 million EUR39.8 million 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 16

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26 DEVELOPMENTS Developments 25%

27 EXISTING PIPELINE Developments Attributable GLA m² Attributable estimated capital cost R4.5 billion Attributable estimated value on completion R6.0 billion Attributable estimated development profit R1.5 billion Number of properties 7 27

28 DEVELOPMENTS UNDER CONSTRUCTION Property Mall of Africa # PwC Tower and Annex* Allandale Building Amrod Torre Industries Sector Retail Office Office Industrial Industrial Location Waterfall Waterfall Waterfall Waterfall Waterfall GLA (100%) m² m² m² m² m² Estimated completion date April 2016 January 2018 August 2016 November 2016 July 2016 # Attacq owns an 80% undivided share. * Attacq owns a 75% undivided share. 28

29 WATERFALL BULK m² Dec 2015 % approved bulk Jun 2015 % approved bulk Total approved bulk Completed - held ( ) (14.9) ( ) (11.6) Completed - sold (61 963) (3.3) (61 963) (3.4) Under construction ( ) (13.5) ( ) (11.4) Remaining bulk total Remaining for development Newly secured % Remaining for development - new bulk secured 4..3% 14.9% Completed - held 11.6% 67.4% Dec % Completed - sold 3.4% Jun % 13.5% Under construction 11.4% Remaining for development 29

30 WATERFALL PROGRESS: Buccleuch Interchange Buccleuch Interchange Waterfall City Waterfall City 30

31 MALL OF AFRICA m² Location / access households Delivery / servicing Dedicated drop-off zones Public transport holding facility 24 access points 303 shops (269 shops + 34 kiosks) ±6 800 parking bays Anchor tenants Uniqueness / efficiencies Town square opening into a central park Planned now for future expansion ± m² Value upliftment in years to come 31

32 WATERFALL SECOND WAVE Infill development Central location Excellent access Completion of Bridal Veil Bridge Opening of Mall of Africa on 28 April 2016 Corporate HQ consolidation: weaker economy Unique urban design: Live, Work, Play 1.3 ha central park Pipeline for next years Economic benefit to Gauteng

33 NEWLY SECURED DEVELOPMENTS JV with Zenprop ± m² JV with Barrow Group ± m²

34 FINANCIAL RESULTS 34

35 BALANCE SHEET Dec 2015 Jun 2015 % change Investment properties Investments* Other assets (4.4) Total assets Interest bearing debt Non-interest bearing debt Total liabilities Equity attributable to owners of the holding company Minority interest Equity * Investments includes equity and loans advanced. 35

36 TOTAL ASSETS Jun 2014 Investment properties Other non-current assets Investments Current assets Jun 2015 Investment properties Other non-current assets Investments Current assets Dec R million (384.8)

37 INVESTMENT PROPERTIES Jun 2014 Purchased Sold Capex FVA - developments under construction FVA - development rights FVA - completed buildings Jun 2015 Sold Capex FVA - developments under construction FVA - development rights FVA - completed buildings Dec R million (308.6) (215.4) (3.6)

38 INVESTMENT PROPERTIES CONTINUED (267.1) (160.9) Jun 2014 Completed buildings Development rights Developments under construction Jun 2015 Completed buildings Development rights Developments under construction Dec R million 21% 16% Completed buildings 13% Development rights 11% Dec 2015 Jun 2015 Developments under construction 68% 71%

39 INVESTMENTS Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 Dec 15 Jun 15 MAS Cyprus AttAfrica APH Nova Eventis Ikeja Serbia Namibia Mauritius Other Wingspan 39 R million Equity Loan Agterskot

40 INTEREST BEARING DEBT Dec 2015 Jun 2015 Total net interest bearing debt Long-term Short-term Overdraft Cash on hand ( ) ( ) Total assets Gearing 39.7% 36.3% 6% 27% 8% Investec Bank 25% Nedbank RMB Dec 2015 Jun 2015 Sanlam 46% 42% 10% ABSA 12% 3% Standard Bank 4% 8% 9% 40

41 INTEREST BEARING DEBT Dec 2015 Jun 2015 Facilities utilised Committed facilities unutilised Total committed facilities Total debt hedged of facilities utilised % hedged of facilities utilised 66.1% 76.8% Cost of floating debt 8.1% 7.6% Hedge premium 1.0% 1.4% Weighted average cost of debt 9.1% 9.0% Net cash on hand Cash on hand Less: Overdraft utilised - (19 349) Committed working capital facilities - Rand Total debt hedged including forward starting hedges Total hedges as % of total committed facilities 72.0% 74.7% 41

42 DEBT MATURITY Maturity of debt and interest rate hedging as at 31 December Within 1 year 1-2 years 3-5 years 6-7 years > 7 years 30% 25% 20% 15% 10% 5% 0% 42 R million Debt maturity Hedge maturity Debt maturity percentage

43 INCOME STATEMENT Dec 2015 Dec 2014 % change Net rental income Gross revenue Property expenses ( ) ( ) 28.2 Operating profit Fair value adjustments Finance costs ( ) ( ) 34.1 Total comprehensive income

44 FAIR VALUE ADJUSTMENTS Dec 2015 Dec 2014 % change Total properties Completed buildings Development rights ( ) (597.9) Developments under construction Other financial assets (2 362) Other investments (20 670) (1 625) ( ) Total

45 EQUITY MOVEMENT NAV bridge Jun 2014 Share issues A-F-S reserve (66.2) 7.0 (113.9) Distributable reserve FCTR Share-based payment reserve Acquisition of NCI reserve Jun 2015 Share issues A-F-S reserve Distributable reserve FCTR Share-based payment reserve Acquisition of NCI reserve Dec R million NAVPS bridge Jun 2014 Share issues A-F-S reserve 1.40 (0.09) 0.01 (0.16) Distributable reserve FCTR Share-based payment reserve Acquisition of NCI reserve Jun Share issues A-F-S reserve Distributable reserve (13.0) (0.02) FCTR Share-based payment reserve Acquisition of NCI reserve Dec 2015 R

46 LOOKING AHEAD 46

47 LOOKING AHEAD Risks Is the growth in US really that promising? What is happening in China? Struggling commodities and impact on Africa and South Africa Political uncertainty and slower growth in South Africa Local services: power and water Downgrading of SA and timing Increasing tenant arrears and defaults Market opportunities Attacq has the ability to focus long-term Most of Attacq s portfolio has green elements Instability creates opportunities Corporate HQ consolidation and the central location of Waterfall City Leverage of existing relationships i.e. MAS, Atterbury and Artisan 47

48 LOOKING AHEAD CONTINUED Key focus areas Grow development pipeline / Waterfall City Leverage opening of Mall of Africa Corporate HQ consolidation and the central location of Waterfall City Ongoing diversification into developed markets Build up cash resources: disposal of mature / under-performing assets Liquidity and sources of funding Reduce exposure to increasing interest rates Potential going forward Conversion of serviced land into developments - joint ventures with other developers Completion of Mall of Africa: the game changer Diversification into European markets i.e. MAS investment Redevelopment and extension of the Cyprus portfolio with other opportunities New development opportunities with local partner in Serbia 48

49 BENEFIT BEYOND OUR BOTTOM-LINE Develop Our focus is education Invest CSI spend to date: R Approved future investment: R Grow Impacted students within five schools Established an Early Childhood Development Centre in Villa Liza (Boksburg) Funding 11 post matric bursary students 10 Property Point participants: generating R24.5 million revenue and creating 34 full-time jobs in their businesses Royal Bafokeng Enterprise Development business mentorship for 36 SMMEs 49

50 QUESTIONS & ANSWERS 50

51 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 may 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 profit forecast. 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. 51

52 APPENDICES

53 PORTFOLIO AND INVESTMENT OVERVIEW AS AT 31 DECEMBER 2015 INVESTMENTS DEVELOPMENTS SOUTH AFRICA EMERGING MARKETS DEVELOPED MARKETS RETAIL PORTFOLIO Garden Route Mall, George 100% Brooklyn Mall, Pretoria 25% # Glenfair Boulevard, Pretoria 100% MooiRivier Mall, Potchefstroom 100% Eikestad Mall, Stellenbosch 80% # Mill Square, Stellenbosch 80% # Andringa Walk, Stellenbosch 100% Waterfall Corner, Waterfall 100% Waterfall Lifestyle, Waterfall 100% Lynnwood Retail, Pretoria 100% Newtown Retail, Johannesburg 55% Club Retail, Pretoria 34.7%^ Wingspan Portfolio 34.4%^ INDUSTRIAL PORTFOLIO Massbuild, Waterfall 100% Angel Shack, Waterfall 100% Dräger, Waterfall 100% Westcon, Waterfall 100% Medtronic, Waterfall 100% Cummins, Waterfall 50% # Hilti, Waterfall 100% Stryker, Waterfall 100% Servest, Waterfall 100% HOTEL PORTFOLIO City Lodge, Pretoria 100% City Lodge, Waterfall 100% City Lodge, Johannesburg 55% OFFICE AND MIXED USE PORTFOLIO Aurecon, Pretoria 100% Altech, Waterfall 50% #xx Great Westerford, Cape Town 50% #xx Brooklyn Bridge Office Park, Pretoria 100% Maxwell Office Park, Waterfall 50% # - Colgate - Mac Mac House - Att House - Golder, Premier, Honda Cell C Campus, Waterfall 100% Group Five, Waterfall 100% Club 1, Pretoria 34.7%^ The Majestic, Newtown 55% Newtown Junction, Johannesburg 55% Novartis, Waterfall 100% Lynnwood Bridge Precinct, Pretoria 100% PwC, Sunninghill 100% Bagatelle Mall of Mauritius, Port Louis, Mauritius 14.3%^^xx AttAfrica^: - Accra Mall, Accra, Ghana 14.3% - Achimota Mall, Accra, Ghana 23.4% - West Hills Mall, Accra, Ghana 14.1% - Kumasi City Mall, Kumasi, Ghana 23.4%*: April Manda Hill, Lusaka, Zambia 15.6% - Waterfalls Mall, Lusaka, Zambia 7.8%** The Grove Mall of Namibia, Windhoek, Namibia 27.5%^ Atterbury Serbia^ - Ušće Mall, Belgrade, Serbia 8.3% - Immo, Belgrade, Serbia 8.3% - Kanem, Belgrade, Serbia 8.3% - Oaza, Belgrade, Serbia 8.3% - Subreal, Subotica, Serbia 8.3% - Development fund, Belgrade, Serbia 12.5% Ikeja City Mall, Lagos, Nigeria 25%^ MAS 44.9%^ Nova Eventis, Leipzig, Germany 19.9%^^ Atterbury Cyprus^ - Shacolas Emporium Park Nicosia, Cyprus 48.6% - Mall of Engomi, Nicosia, Cyprus 48.5% Key * In progress dates represent expected completion dates ** 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 RETAIL PORTFOLIO Waterfall - Mall of Africa 82% # : April 2016 OFFICE AND MIXED USE PORTFOLIO Waterfall - Magwa House 50% # : June Allandale Building 100%: August PwC 75% # : January 2018 INDUSTRIAL PORTFOLIO Waterfall - Spec Warehouse 100%: July Amrod 100%: November Torre 100%: July 2016 DEVELOPMENT RIGHTS Waterfall Land, Waterfall 100%** 53

54 WATERFALL MAP 54

55 PROPERTY AGEING OF GLA % Total GLA Dec 2015: m² Jun 2015: m² 30.6% <1 year 1 2 years 3 5 years 6 10 years +10 years 55 GLA (m²) 25.0% % % % % % 9.2% % As at 31 Dec 2015 As at 30 Jun 2015

56 TRADING DENSITIES 12% Brooklyn Mall Eikestad Precinct Garden Route Mall MooiRivier Mall Newtown Junction Glenfair Shopping Centre Lynnwood Bridge Retail Waterfall Corner 56 R / m² 10% % % % % months average ending 31 Dec months average ending 30 Jun % %

57 PORTFOLIO OVERVIEW Retail portfolio Primary GLA m² Valuation Property name Location Key tenants Garden Route Mall George Pick n Pay, Game, Woolworths, Dis-Chem Glenfair Boulevard Pretoria Shoprite Checkers, SuperSpar, Dis-Chem MooiRivier Mall Potchefstroom Woolworths, Checkers, Game Eikestad Mall^ Stellenbosch Checkers, Woolworths Andringa Walk Stellenbosch Food Lovers Market, Game, USave Brooklyn Mall* Pretoria Woolworths, Checkers, Dis-Chem, Game Lynnwood Bridge - Retail Pretoria Woolworths, Planet Fitness, The Pro Shop Waterfall Corner Waterfall Woolworths, Shoprite Checkers, Clicks Waterfall Lifestyle Waterfall Virgin Active, Bounce Newtown Junction Johannesburg Shoprite, Pick n Pay, Ster Kinekor, Planet Fitness, Mr Price Total Value R / m² Hotel portfolio Primary GLA m² Valuation Property name Location Lease expiry City Lodge - Lynnwood Pretoria City Lodge - Waterfall Waterfall City Lodge - Newtown Johannesburg Total Value R / m² Values provided above reflect Attacq s undivided share in the property: ^80%; *25%. 57

58 PORTFOLIO OVERVIEW Office and mixed use portfolio Property name Location Key tenants Lynnwood Bridge - Offices Pretoria Adams & Adams, Sanlam Mixed Lease expiry Primary GLA m² Valuation Lynnwood Bridge - Aurecon Pretoria Aurecon Lynnwood Bridge Phase III Pretoria Atterbury, Citadel, Aurecon Mixed Brooklyn Bridge Office Park Pretoria SARS, Counsel Chambers Mixed Mill Square^ Stellenbosch Cape Union Mart, Cotton On, Investec, Mertech Mixed Altech* Waterfall Altech Maxwell Office Park - Golder* Waterfall Golder & Associates Maxwell Office Park - Att House* Waterfall Attacq, Atterbury, Cipla Mixed Maxwell Office Park - Premier* Waterfall Premier Foods Maxwell Office Park - Honda* Waterfall Honda, Quant Mixed Maxwell Office Park - Colgate^ Waterfall Colgate Maxwell Office Park - Mac Mac House^ Waterfall Northam Platinum, Strategic Solution Architects Mixed Cell C Campus Waterfall Cell C Group Five Waterfall Group Five The Majestic Johannesburg Nedbank Newtown Junction Nedbank Johannesburg Nedbank Novartis Waterfall Novartis PwC Sunninghill Sunninghill PwC Great Westerford* Cape Town Korbitec, Teraco, Futuregrowth, Intec Mixed Total Value R / m² Values provided above reflect Attacq s undivided share in the property: ^80%; *50%. 58

59 PORTFOLIO OVERVIEW Industrial portfolio Primary GLA m² Valuation Property name Location Lease expiry Massbuild Waterfall Angel Shack Waterfall Westcon Waterfall Dräger Waterfall Cummins* Waterfall Medtronic Waterfall Hilti Waterfall Stryker Waterfall Servest Waterfall Total Value R / m² Values provided above reflect Attacq s undivided share in the property: *50% 59

60 PORTFOLIO OVERVIEW Developments Primary GLA m² % Pre-let (GLA) Total capital cost Value est on completion Est dev profit Property name Sector Completion date Mall of Africa* Retail April > Maxwell Office Park - Magwa House^ Office June > Allandale Building Office August > PwC Tower and Annex ~ Office January Speculative warehouse Industrial July Torre Industries Industrial July Amrod Industrial November Total Values provided above reflect Attacq s undivided share in the property: ^50%; ~ 75%; *80%. Recently secured projects not included above. 60

61 LEASE EXPIRY PROFILE % % 6.2% 3.4% 4.4% 0 Vacancy Hotel Industrial Office Retail Total GLA (m²) 14.6% 57.1%

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64 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unuadited 31 December 2015 Unaudited 31 December 2014 Audited 30 June 2015 Assets Non-current assets Property, plant and equipment Investment properties Per valuation Straight-line lease debtor ( ) ( ) ( ) Straight-line lease debtor Deferred initial lease expenditure Intangible assets Goodwill Investment in associates Other financial assets Other investments Deferred tax assets Total non-current assets Current assets Taxation receivable Trade and other receivables Loans to associates Other financial assets Cash and cash equivalents Total current assets Assets held for sale Total assets Equity and liabilities Equity Stated capital Distributable reserves Available-for-sale reserve Share-based payment reserve Foreign currency translation reserve Acquisition of non-controlling interests reserve ( ) ( ) ( ) Equity attributable to owners of the holding company Non-controlling interests (2 706) Total equity Non-current liabilities Long-term borrowings Deferred tax liabilities Other financial liabilities Provisions for liabilities relating to associates Finance lease obligation Total non-current liabilities Current liabilities Other financial liabilities Finance lease obligation Loans from associates Taxation payable Trade and other payables Provisions Bank overdraft Short-term portion of long-term borrowings Total current liabilities Liabilities directly associated with assets held for sale Total liabilities Total equity and liabilities Net asset value per share (cents) Net asset value per share adjusted for deferred tax (cents) Develop Invest Grow

65 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited 31 December 2015 Unaudited 31 December 2014 Audited 30 June 2015 Gross revenue Rental income Straight-line lease income adjustments Property expenses ( ) ( ) ( ) Net rental income Other income Operating and other expenses ( ) (61 005) ( ) Operating profit Amortisation of intangible asset (9 982) (9 756) (20 303) Fair value adjustments Investment properties Other financial assets and liabilities (2 362) Other investments (20 670) (1 625) (64 576) Net income (loss) from associates (24 960) Investment income Finance costs ( ) ( ) ( ) Profit before taxation Income tax expense ( ) ( ) ( ) Profit for the period Attributable to: Owners of the holding company Non-controlling interests (4 451) Other comprehensive income Items that will be reclassified subsequently to profit and loss Gain on available-for-sale financial assets Taxation relating to components of other comprehensive income (63 153) Other comprehensive income for the period net of taxation Total comprehensive income for the period Attributable to: Owners of the holding company Non-controlling interests (4 451) Earnings per share Basic (cents) Diluted (cents) attacq Condensed unaudited consolidated interim results for the six months ended 31 December

66 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unuadited 31 December 2015 Unaudited 31 December 2014 Audited 30 June 2015 Assets Non-current assets Property, plant and equipment Investment properties Per valuation Straight-line lease debtor ( ) ( ) ( ) Straight-line lease debtor Deferred initial lease expenditure Intangible assets Goodwill Investment in associates Other financial assets Other investments Deferred tax assets Total non-current assets Current assets Taxation receivable Trade and other receivables Loans to associates Other financial assets Cash and cash equivalents Total current assets Assets held for sale Total assets Equity and liabilities Equity Stated capital Distributable reserves Available-for-sale reserve Share-based payment reserve Foreign currency translation reserve Acquisition of non-controlling interests reserve ( ) ( ) ( ) Equity attributable to owners of the holding company Non-controlling interests (2 706) Total equity Non-current liabilities Long-term borrowings Deferred tax liabilities Other financial liabilities Provisions for liabilities relating to associates Finance lease obligation Total non-current liabilities Current liabilities Other financial liabilities Finance lease obligation Loans from associates Taxation payable Trade and other payables Provisions Bank overdraft Short-term portion of long-term borrowings Total current liabilities Liabilities directly associated with assets held for sale Total liabilities Total equity and liabilities Net asset value per share (cents) Net asset value per share adjusted for deferred tax (cents) Develop Invest Grow

67 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited 31 December 2015 Unaudited 31 December 2014 Audited 30 June 2015 Gross revenue Rental income Straight-line lease income adjustments Property expenses ( ) ( ) ( ) Net rental income Other income Operating and other expenses ( ) (61 005) ( ) Operating profit Amortisation of intangible asset (9 982) (9 756) (20 303) Fair value adjustments Investment properties Other financial assets and liabilities (2 362) Other investments (20 670) (1 625) (64 576) Net income (loss) from associates (24 960) Investment income Finance costs ( ) ( ) ( ) Profit before taxation Income tax expense ( ) ( ) ( ) Profit for the period Attributable to: Owners of the holding company Non-controlling interests (4 451) Other comprehensive income Items that will be reclassified subsequently to profit and loss Gain on available-for-sale financial assets Taxation relating to components of other comprehensive income (63 153) Other comprehensive income for the period net of taxation Total comprehensive income for the period Attributable to: Owners of the holding company Non-controlling interests (4 451) Earnings per share Basic (cents) Diluted (cents) attacq Condensed unaudited consolidated interim results for the six months ended 31 December

68 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME continued Unaudited 31 December 2015 Unaudited 31 December 2014 Audited 30 June 2015 Reconciliation between earnings, headline earnings and distributable earnings (loss) Profit for the period Headline earnings adjustments ( ) ( ) ( ) Profit on disposal of associates ( ) (331) (89 161) Profit on disposal of other investments (1 994) (956) (956) Loss (Profit) on disposal of investment property (29 132) Impairment (reversal of impairment) of associates and other investments (14 838) Impairment of goodwill Fair value adjustments ( ) ( ) ( ) Net (income) loss from associates (87 286) (50 568) Tax effect of adjustments Non-controlling interests share (19 214) (11 347) Headline earnings Distributable earnings adjustments ( ) (64 701) ( ) Straight-line lease income adjustments (52 623) (64 965) ( ) Depreciation and amortisation Foreign currency translation effect ( ) (47 246) Finance lease interest Actual finance lease payments (243) (374) (392) Distributable earnings (loss) ( ) Number of shares in issue* Weighted average number of shares in issue* Diluted weighted average number of shares in issue* Headline earnings per share Basic (cents) Diluted (cents) * Adjusted for treasury shares (2014: ) 69 Develop Invest Grow

69 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS Unaudited 31 December 2015 Unaudited 31 December 2014 Audited 30 June 2015 Cash flow (utilised in) generated from operating activities (108) ( ) Cash generated from operating activities Investment income Finance costs ( ) ( ) ( ) Taxation paid (22 157) (31 443) (75 768) Cash flow utilised in investing activities ( ) ( ) ( ) Cash flow generated from financing activities Total cash movement for the period ( ) Cash at the beginning of the period Cash acquired with subsidiaries 391 Total cash at the end of the period attacq Condensed unaudited consolidated interim results for the six months ended 31 December

70 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Stated capital Distributable reserves Availablefor-sale reserve Audited balance at 1 July Total comprehensive income Profit for the period Other comprehensive income Foreign currency translation reserve Derecognition of non-controlling interest Issue of shares Recognition of non-controlling interests reserve Recognition of share-based payments Unaudited balance at 31 December Total comprehensive income Profit for the period Other comprehensive income Foreign currency translation reserve Recognition of share-based payments Audited balance at 30 June Total comprehensive income Profit for the period Other comprehensive income Foreign currency translation reserve Issue of shares Recognition of non-controlling interests reserve Recognition of share-based payments Unaudited balance at 31 December Develop Invest Grow

71 Share-based payment reserve Foreign currency translation reserve Acquisition of noncontrolling interests reserve Equity attributable to owners of the holding company Noncontrolling interests Total equity (2 574) (4 451) (4 451) (6 773) (6 773) (6 773) ( ) ( ) ( ) ( ) ( ) ( ) (2 706) (59 416) (59 416) (59 416) ( ) (13 000) (13 000) (13 000) ( ) attacq Condensed unaudited consolidated interim results for the six months ended 31 December

72 CONDENSED SEGMENTAL ANALYSIS Revenue Unaudited 31 December 2015 Net profit (loss) Investment properties Net asset value Notes Business segment Brooklyn Bridge Office Park Great Westerford * Lynnwood Bridge Precinct Aurecon Building Newtown Junction The Majestic (7 038) PwC Sunninghill (1 080) (48 001) Waterfall Altech Building * 1 (1 487) Waterfall Cell C Campus Waterfall City Lodge Waterfall Group Five Waterfall Maxwell Office Park Phase I, II & III * Waterfall Novartis Office and mixed use Glenfair Boulevard Shopping Centre Garden Route Mall Brooklyn Mall # MooiRivier Mall Andringa Walk Eikestad Mall^ Mill Square^ Waterfall Corner Waterfall Lifestyle Retail Waterfall Angel Shack Waterfall Medtronic Waterfall Cummins * Waterfall Dräger Waterfall Massbuild Waterfall Westcon Waterfall Hilti (32) Waterfall Servest Waterfall Stryker Light industrial Le Chateau (2) Waterfall Development rights ( ) Waterfall Infrastructure and services (13 543) Vacant land ( ) Newtown City Lodge Newtown Carr Street Waterfall Allandale Building Waterfall Hilti Waterfall Mall of Africa^ Waterfall Maxwell Office Park Phase IV * Waterfall PwC Tower and PwC Annex ~ Waterfall Servest Waterfall Stryker Waterfall Torre Industries Waterfall Amrod Waterfall Spec Warehouse Waterfall Cummins * Waterfall Novartis Developments under construction Head office/other Total Notes: 1. Held for sale as at 31 December Acquired during prior year Represents Attacq s undivided share in the property: * 50%; # 25%;^80%; ~ 75% 73 Develop Invest Grow

73 Revenue Unaudited Audited 31 December June 2015 Investment Net Net properties asset value Revenue profit (loss) Net profit (loss) Investment properties Net asset value (45 800) (21 896) (29 371) (1 205) (468) (4 434) (3 179) ( ) (3 122) (1 664) (5) (4) (7 780) (7 751) (3 838) (3 838) attacq Condensed unaudited consolidated interim results for the six months ended 31 December

74 COMMENTARY Introduction Attacq is a leading South African capital growth property company listed on the JSE. Attacq s vision is to deliver exceptional sustainable capital growth through creative local and international real estate developments and investments. Attacq pursues this vision through its strategic drivers of Develop, Invest and Grow. Attacq s business has two key focus areas: Investments and Developments. Investments comprise completed buildings held directly and indirectly. Developments comprise land, greenfields development of land and brownfields development by refurbishment of existing buildings. Investments provide stable income and balance sheet strength to responsibly secure and fund sound growth opportunities. Attacq has a total asset value of R27.1 billion, which includes landmark commercial and retail property assets and developments. Attacq s portfolio of properties and investments consists of geographically diverse assets across South Africa as well as a growing representation of international investments in sub-saharan Africa, Western, Central and Eastern Europe. Highlights Net asset value per share ( NAVPS ) adjusted for deferred tax ( Adjusted NAVPS ) increased by 27.6% to R21.72 year-on-year NAVPS increased by 24.5% to R19.33 year-on-year Total assets increased by 32.4% to R27.1 billion year-on-year Investments in international assets increased by 72.8% to R6.4 billion year-on-year Net rental income increased by 25.5% to R531.0 million against the prior comparative period The Mall of Africa, a super-regional mall, opening on 28 April 2016 Net asset value ( NAV ) and NAVPS NAV attributable to Attacq shareholders increased by 24.6% year-on-year. Adjusted NAVPS increased by 27.6% year-on-year from R17.02 to R21.72 and NAVPS increased by 24.5% from R15.52 to R Acquisitions Investment in Cyprus On 24 July 2015, the Group acquired an effective 48.6% interest in ITTL Trade & Tourist Leisure Park Plc, owner of the Shacolas Emporium Park and an effective 48.5% interest in Woolworth Commercial Centre Plc, the owner of The Mall of Engomi. The properties are located in Nicosia, the capital city of Cyprus and were acquired by Atterbury Cyprus Limited ( Atterbury Cyprus ) in which Attacq has a 48.8% shareholding. Atterbury Europe B.V. ( Atterbury Europe ), together with minorities, owns the balance of the shareholding in Atterbury Cyprus. The m² Shacolas Emporium Park comprises the m² Mall of Cyprus and a m² Ikea store. It attracts over five million shoppers annually. The Mall of Engomi is a m² retail centre located in the west of Nicosia and attracts more than one and a half million shoppers annually. Both centres provide expansion opportunities. Attacq s share of the acquisition consideration was R670.6 million and the investment was valued at R968.0 million as at 31 December Investment in Serbia Effective 1 December 2015, the Group, jointly with Atterbury Europe, acquired a 33.0% shareholding in a portfolio of five operational Serbian retail properties with a gross value of million. The acquisition was made via Atterbury Serbia B.V. ( Atterbury Serbia ), in which Attacq has a 25.0% shareholding. The seller, Balkans Real Estate B.V. ( BRE ), has retained a 67.0% shareholding in the portfolio. An interest in a further two properties will be acquired upon completion during the course of the 2016 calendar year. The portfolio was acquired at a euro yield in excess of 8.0% and Attacq s investment is valued at R358.9 million as at 31 December Serbia s largest mall, the m² Ušće Shopping Centre, located in the capital city Belgrade, forms part of the investment portfolio. Belgrade is a city of close to two million people and currently has only two large shopping malls. Ušće Shopping Centre, with a diverse retail offering via its 150 stores, dominates the local market and averages over one million shoppers per month. In addition to the operational properties acquired, Atterbury Serbia and BRE have jointly invested 40.0 million into a development fund which will undertake retail developments in Serbia and neighbouring countries. 75 Develop Invest Grow

75 Investment in Nigeria The Group acquired a 25.0% shareholding in Ikeja City Mall located in Lagos, Nigeria with the balance of 75.0% acquired by Hyprop Investments Limited ( Hyprop ). The effective date of the transaction was 17 November 2015 and as at 31 December 2015 the investment was valued at R360.8 million. The m 2 Ikeja City Mall receives in excess of shoppers per month and was acquired at a US dollar yield in excess of 8.0%. The mall was acquired as part of a strategy by Attacq, Hyprop and AttAfrica Limited ( AttAfrica ) to create a portfolio of dominant malls in large cities across Africa. Disposals Mauritian assets Effective 27 November 2015, the Group disposed of a 34.9% shareholding in Bagaprop Limited, the owner of the Bagatelle Mall in Mauritius and its 49.9% interest in Mall of Mauritius at Bagatelle Limited, the owner of the land and developments surrounding the Bagatelle Mall. These investments were held via Attacq s 85.0% (80.0% as at 30 June 2015) subsidiary, Atterbury Mauritius Consortium (Pty) Ltd ( AMC ). Attacq completed the exit from its Mauritius assets subsequent to interim period end by disposing of its shareholding in AMC to Atterbury Property Holdings (Pty) Ltd ( Atterbury ). Total cash funds received by Attacq from the exit of these assets amounted to R676.4 million. Other disposals The Group disposed of its 25.0% shareholding in Atterbury Mauritius Limited, which held a minority interest in the asset manager of the Bagatelle Precinct for R8.0 million as well as its effective 30.0% interest in The Pavilion, a student residential accommodation property located in Birmingham, UK, held via Bishopsgate Limited, for R34.9 million. Financial position Investment properties 31 December December June 2015 Completed buildings Developments under construction Development rights Infrastructure and services Vacant land Per valuation Straight-line lease debtor ( ) ( ) ( ) Total Buildings completed during the period During the six months ended 31 December 2015, the following six buildings were completed. Attacq s attributable share of the total of m 2 primary gross leasable area ( GLA ) of these properties is m 2 : Property Sector Completion date GLA (m 2 ) Occupancy % Waterfall Hilti Industrial October Stryker Industrial September Servest Industrial August Maxwell Office Park Colgate^ Office August Maxwell Office Park Mac Mac House^ Office October Other City Lodge Newtown Hotel November Total % of the GLA is reflected above ^ Attacq has a 50% undivided share in the property attacq Condensed unaudited consolidated interim results for the six months ended 31 December

76 COMMENTARY continued Developments under construction The following properties were under development at 31 December Attacq s attributable share of the total of m 2 GLA of these properties is m 2 : Property Sector Anticipated completion date GLA (m 2 )* % pre-let Waterfall Mall of Africa # Retail April >95 Maxwell Office Park Magwa House^ Office June >75 Allandale Building Office August >55 PwC Tower and Annex ~ Office January Amrod Industrial November Speculative warehouse Industrial July Torre Industries Industrial July Total >90 * Estimated GLA for 100% of development. Subject to change upon final remeasurement post completion ^ Attacq has an undivided share in the property: # 80%; ^50%; ~ 75% Development rights Development rights relate to the contractual rights held by Attacq Waterfall Investment Company (Pty) Ltd ( AWIC ) to develop certain land parcels in Waterfall. These rights form a material element of the overall land valuation. As at 31 December million m 2 (30 June 2015: 1.35 million m 2 ) of Waterfall s total bulk of 1.85 million m 2 (30 June 2015: 1.83 million m 2 ) remains available for development. Infrastructure and services The net growth in infrastructure and services is as a result of the costs incurred to service the Waterfall land in preparation for the development of Waterfall City and future top structures. While this asset generated no cash return, it creates the platform for future economic benefits from top structure developments. Investments in and loans to associates MAS Real Estate Inc. ( MAS ) As at 31 December 2015, Attacq held a 44.9% shareholding in MAS (30 June 2015: 45.3%). Attacq s equity accounted investment in MAS increased from R2.2 billion as at 30 June 2015 to R2.6 billion as at 31 December 2015, driven mainly by the 23.6% weakening in the rand against the euro. MAS adjusted NAVPS increased by 10.4% from euro cents per share as at 31 December 2014 to euro cents per share as at 31 December After taking into account MAS distribution of 2.2 euro cents per share paid in September 2015, adjusted NAVPS compared with 30 June 2015 was lower by 2.2% or 2.7 euro cents per share, being negatively impacted by the strengthening of the euro, MAS reporting currency, against the pound sterling and Swiss franc. MAS has made favourable progress in achieving its short-term income goals, however, given the current stage of the market cycle in many parts of Western Europe and muted outlook for capital growth in these markets, the MAS board has decided to alter MAS strategy of focusing purely on income returns to a total return strategy. In terms of this new strategy, MAS will continue to distribute all available income profits with the reinvestment of capital profits remaining at the discretion of the MAS board. As part of this strategy, MAS will widen its Western Europe investment focus to include opportunities in Central and Eastern Europe ( CEE ). MAS has entered into a joint venture ( JV ) with Prime Kapital Limited, a real estate development and investment business established by Martin Slabbert and Victor Seminonov and backed by an experienced team with a proven track record. The JV will provide MAS with access to high growth euro denominated jurisdictions and will focus on the development and redevelopment of commercial real assets in CEE to create a high quality portfolio of assets in dominant locations. As at 31 December 2015, the fair value of the agterskot owing by MAS in respect of the disposal of the Karoo Investment Fund S.C.A. SICAV-SIF ( Karoo ) to MAS in December 2013 amounted to R490.2 million ( 29.1 million). This amount was included under other financial assets at interim period end. The agterskot will be settled during the course of March 2016 by the issue of 21.3 million new MAS shares which will result in Attacq s interest in MAS increasing to 48.6%. 77 Develop Invest Grow

77 AttAfrica Presently, Africa in general is experiencing tough economic conditions given the recent USD strength, continued depressed commodity and oil prices and lack of stability in power supply. The dominant malls in the portfolio, notably Manda Hill Mall and Accra Mall, have defensive qualities and continue to trade relatively well given the more challenging operating environment. During the period, the Group s investment in AttAfrica increased to R871.1 million (30 June 2015: R461.8 million). The investment relates to the shareholder s loan provided by Attacq to AttAfrica. With the completion of Achimota Mall in November 2015, the only remaining development under construction is Kumasi City Mall which is expected to be completed by April At 31 December 2015, AttAfrica s underlying assets were as follows: Property Location GLA (m 2 *) AttAfrica ownership % AttAfrica attributable property value USD 000 Attacq effective interest % Completed buildings Manda Hill Mall Lusaka, Zambia Accra Mall Accra, Ghana West Hills Mall Accra, Ghana Achimota Mall Accra, Ghana Development under construction Kumasi City Mall Kumasi, Ghana * * Proposed size Other investments Attacq s 19.9% interest in Stenham European Shopping Centre Fund Limited, the owner of the Nova Eventis regional shopping centre in Leipzig, Germany is included in other investments together with Attacq s 10% shareholding in Atterbury. Other financial assets In addition to the Karoo agterskot of R490.2 million, other financial assets include an amount of R581.7 million owed by Atterbury for the acquisition of their 20.0% undivided share in the Mall of Africa. The amount due by Atterbury in respect of 18.8% of the Mall is to be settled within 10 days after completion of the Mall with the balance of 1.2% to be settled based on the fair market value of the Mall as at 30 June 2017 as determined by an external independent valuer. Assets held for sale The Club Retail Park (Pty) Ltd ( The Club ) Atterbury Property Fund (Pty) Ltd has offered to acquire Attacq s 32.0% shareholding in The Club. The transaction is subject to conditions precedent. As at 31 December 2015, the investment is included under assets held for sale at an amount of R49.1 million. 50% undivided share in Great Westerford Attacq s 50% undivided share in the Great Westerford property is included under assets held for sale at an amount of R292.0 million. The asset was disposed of at this value effective 21 January 2016 to The Leaf Property Fund Trust. 50% undivided share in the Altech Building The Altech building has been identified as a non-core asset and as a result management has commenced with an active programme to locate a buyer. The programme is at an advanced stage and management anticipates the disposal of the building before year end. attacq Condensed unaudited consolidated interim results for the six months ended 31 December

78 COMMENTARY continued Borrowings Total net interest-bearing borrowings increased by 27.2% compared with 30 June 2015 due to additional debt being incurred to fund the growing property portfolio. Gearing, calculated as total interest-bearing debt less cash on hand as a percentage of total assets, increased from 36.3% as at 30 June 2015 to 39.7% as at 31 December In order to mitigate interest rate risk, approximately R10.3 billion or 72.0% of total committed facilities as at 31 December 2015 (30 June 2015: R8.9 billion or 74.7%) were hedged by way of fixed interest rate loans and interest rate swaps. This is within the 70.0% minimum interest hedge policy set by the Attacq Board. The weighted average cost of funding increased slightly over the last six months from 9.0% at 30 June 2015 to 9.1% as at 31 December Approximately 13.6% (R1.5 billion) of the Group s debt is due for repayment over the next 12 months. Similarly, 13.3% of the Group s interest rate swaps or fixed rate loans mature over the same period. Financial performance Profit before taxation Net rental income Net rental income, which includes straight-line lease income adjustments, increased by 25.5% compared with the prior comparative period. A year-on-year comparison of net rental income is less meaningful, due to six buildings having been completed during the current reporting period (31 December 2014: 11 buildings). The weighted average lease expiry profile is 6.8 years as at 31 December 2015 (31 December 2014: 7.2 years). Vacancies Overall portfolio vacancies, measured in terms of GLA, have decreased by m² compared with 31 December This decrease relates primarily to Newtown Junction, The Majestic, Lynnwood Bridge Offices and Waterfall Lifestyle, all of which came into operation during the period ending 31 December Current vacant space amounts to m², which equates to 2.2% of the total GLA. 31 December December June 2015 Sector Vacancy % Vacant GLA m 2 Vacancy % Vacant GLA m 2 Vacancy % Vacant GLA m 2 Retail Office Industrial Hotel Portfolio vacancy Property expenses Property expenses increased by 28.2% mainly due to municipal charges that increased by 44.8%. Property expenses as a percentage of rental income improved marginally from 36.1% to 34.6% for the six-month period ending 31 December Other income Other income of R569.9 million includes unrealised foreign exchange gains of R420.4 million (December 2014: R43.7 million) and a profit of R145.0 million on the disposal of a 34.9% shareholding in Bagaprop Limited and a 49.9% interest in Mall of Mauritius at Bagatelle Limited. Operating and other expenses The increase of 99.6% in operating and other expenses is primarily attributed to the marketing, rates and taxes and security expenses relating to Waterfall which are not capitalised against the developments under construction. 79 Develop Invest Grow

79 Fair value adjustments Compared with the corresponding prior period, fair value adjustments on investment properties increased by 37.5% to R426.8 million and are made up as follows: Six months ended 31 December 2015 Six months ended 31 December months ended 30 June 2015 Completed buildings Developments under construction Development rights ( ) Total fair value adjustments to investment properties Property valuations for interim reporting purposes are directors valuations which are in the main, supported by external desktop valuations performed by Jones Lang LaSalle (Pty) Ltd, Old Mutual Investment Group (South Africa) (Pty) Ltd and Mills Fitchet KZN CC. The directors valuation in respect of Waterfall s development rights is based on an external desktop valuation performed on a freehold basis. The desktop valuation is then adjusted downward by management to take into account, inter alia, the nature of the contractual rights and the estimated future rental obligations attached to the development rights. The deteriorating economic environment and lower investor confidence have caused the directors to take a more conservative view on the timing of the roll-out of the development rights, which resulted in a negative fair value adjustment of R215.4 million. Over the last six months, the fair value of the interest rate swaps increased favourably by R229.6 million (December 2014: decrease of R2.4 million), displaying the effect of the future outlook of interest rates as well as the interest rate hikes for the period under review. Investment income Included in investment income in the current period is interest income of R64.4 million (December 2014: R49.6 million) and dividend income of R9.8 million (December 2014: R23.9 million). Finance costs The increase in finance costs of 34.1% compared with the prior reporting period is attributable to the six buildings (31 December 2014: 11 buildings) completed over the last six months, resulting in the finance costs post completion being expensed and no longer capitalised to the specific development. Change in directors Effective 1 July 2015, BT Nagle was appointed to the Board as a non-executive director, LLS van der Watt s designation was changed from executive to non-executive and, following a review of his independence by the Board, AW Nauta s designation was changed from non-independent to independent due to the fact that he is no longer a representative of a significant shareholder of Attacq. TJA Reilly, an alternate director to JHP van der Merwe, a non-independent non-executive director of the Company, resigned with effect from 30 October BT Nagle and JHP van der Merwe no longer act as representatives of significant shareholders of Attacq. Based on the important contribution that both directors make to the Board, the Board has decided to retain them in an independent non-executive capacity with effect from 1 February attacq Condensed unaudited consolidated interim results for the six months ended 31 December

80 COMMENTARY continued Subsequent events 50% undivided share in Great Westerford Effective 21 January 2016, Attacq sold its 50% undivided share in the Great Westerford property to The Leaf Property Fund Trust for an amount of R292.0 million. Deferred taxation As announced on 24 February 2016 by the Minister of Finance in the budget speech, the inclusion rate for capital gains for companies has been increased from 66.6% to 80.0%. This will raise the capital gains tax rate for companies from 18.6% to 22.4% effective for years of assessment beginning on or after 1 March The deferred taxation balances for these interim results have not been adjusted for the new capital gains tax rate in accordance with SAICA Financial Reporting Guide on substantively enacted tax rates and tax laws issued in December The increased rate will be taken into account when reporting the results for the year ending 30 June Prospects In South Africa, in addition to optimising its growing R12.4 billion portfolio of operational buildings and delivering on its Waterfall pipeline, Attacq remains on the lookout for further growth opportunities. The Waterfall node continues to strengthen with six new buildings completed during the period under review, adding m 2 GLA to Attacq s portfolio. The super-regional Mall of Africa is on track to open on 28 April 2016 and is expected to act as a strong catalyst for demand for premises in the surrounding Waterfall City, which has a further m 2 of bulk available for development. Waterfall City is seen as one of the most significant South African commercial developments of the decade and continues to attract local and international attention as the new corporate headquarters destination. Internationally, Attacq has invested into new markets in Cyprus and Serbia which complement its existing Western European exposure via MAS. The Cyprus assets provide expansion opportunities and further developments will be undertaken in Serbia. In sub-saharan Africa, the short to medium-term outlook has weakened significantly with the challenges of a strong dollar and depressed commodity prices. Attacq s focus in Africa will be on delivering Kumasi City Mall and active asset management of existing assets through the cycle. Basis of preparation The condensed unaudited consolidated interim financial statements for the six months ended 31 December 2015 have been prepared in accordance with IAS 34: Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the JSE Limited Listings Requirements and the requirements of the Companies Act of South Africa. This report was compiled under the supervision of M Hamman CA(SA), Chief Financial Officer of Attacq. The accounting policies applied in the preparation of the condensed consolidated interim financial statements are in terms of IFRS and are consistent with the accounting policies applied in the preparation of the previous consolidated financial statements, with the exception of the adoption of new and revised standards which became effective during the period. The Group s investment properties are valued internally by the directors at interim reporting periods and externally by independent valuers for year-end reporting. In terms of IAS 40: Investment Property and IFRS 7: Financial Instruments: Disclosure, the Group s investment properties are measured at fair value and are categorised as level 3 investments. In terms of IAS 39: Financial Instruments: Recognition and Measurement and IFRS 7, the Group s currency and interest rate derivatives as well as the equity derivative are measured at fair value through profit or loss and are categorised as level 2 investments. In terms of IAS 39, listed investments are measured at fair value being the quoted closing price at the reporting date and are categorised as level 1 investments. Unlisted investments are categorised as level 3. There were no transfers between levels 1, 2 and 3 during the period. The valuation methods applied are consistent with those applied in preparing the previous consolidated financial statements. The directors are not aware of any matters or circumstances arising subsequent to 31 December 2015 that require any additional disclosure or adjustment to the financial statements. The interim financial statements have not been audited or reviewed by Attacq s auditors. On behalf of the Board P Tredoux Chairman 8 March 2016 MC Wilken CEO 81 Develop Invest Grow

81 Directors P Tredoux #* (Chairman) MC Wilken (CEO) M Hamman (CFO) LLS van der Watt * AW Nauta #* JHP van der Merwe #* S Shaw-Taylor #* HR El Haimer #* PH Faure #* MM du Toit #* KR Moloko #* BT Nagle #* # 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 205 Private Bag X20009 Garsfontein 0042 Transfer Secretaries Computershare Investor Services (Pty) Ltd Ground Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107) Sponsor Java Capital attacq Condensed unaudited consolidated interim results for the six months ended 31 December