annual financial results for the 12 months ended 31 August 2017

Octodec Head Office Sharon s Place One On Mutual 012 Steyn s Place Creating value beyond financial return annual financial results for the 12 months ended 31 August 2017

agenda 1 about us 03 2 overview for the period 06 3 our portfolio performance 10 4 our results 33 2017 Tshwane, Church Square 5 outlook 44 6 questions and answers 48 7 contact details 49 8 appendices 50 1905 Pretoria, Church Square 2

2017 One on Mutual completed 1 about us 2014 One on Mutual site preparation 3

the Octodec story Listed on the JSE in 1990: REIT status on 1 September 2013 Provided shareholders with an annual compounded return over a five and 10-year period of 12.8% and 9.4% respectively 315 properties (including joint ventures) in portfolio Properties managed by City Property Administration (Pty) Ltd New five-year management contract under negotiation Separate sub-committee formed comprising of non-executive directors Over 40 years property management experience Solid track record of managing residential, retail, office and industrial property 2017 Kerk Street, Johannesburg 1911 Anstey s Building 4

the Octodec story our strategy The strategy remains the same Focus on Tshwane and Johannesburg CBDs Continually improving the quality of our portfolio Focus on growing our residential portfolio Continue to focus on the low to mid income LSM 2017 Kerk Street, Johannesburg 1911 Anstey s Building 5

2overview for the period 2016 Tshwane, Church Square 1920s Pretoria, Church Square 6

overview for the period Dividends of 203.1 cents per share, for the twelve month period ending 31 August 2017, a 0.8% increase compared to the prior period of 201.5 cents per share Total property assets value at R12.8 billion, up by R474.2 million NAV up by 0.7% to R29.33 per share Context Residential increasingly competitive Tough economic, political and operating environment Rising costs (finance, utility and assessment rates and operating costs) Council service delivery issues Difficult construction environment Progress Property fundamentals sound Strategic greenfield developments to uplift key Tshwane CBD node Entrance to new market outside the CBD Successful trial of more upmarket offering with One on Mutual trading above expectations Profitable recycling of non-core assets Improved balance sheet Prudent capital management 7

overview of Tshwane CBD One on Mutual Sharon s Place Midtown Concentration of investments Increased urbanisation New developments improving node New Tshwane House New Tshwane House GLA of 37 000 m 2 Housing in excess of 1 500 staff Sustaining city life: TWO decades of building a city bears fruit Octodec properties Octodec properties developments 8

overview of Johannesburg CBD Urban renewal gaining momentum Increasing private sector investment Higher demand for property Local council support Sustaining city life: TWO decades of building a city bears fruit Octodec properties 9

29% Residential 8% Industrial 22.2% Offices 4.2% Parking 26.6% High street shops 10% Shopping centres 3our portfolio performance 10

portfolio analysis: rental income 31 August 2017 Rental income (%) by geographical location Rental income (%) by sector 40% 35% 30% 25% 20% 15% 10% 5% 0% 2.3 Centurion 4.4 Silverton and surrounding areas 4.8 Tshwane Arcadia 7.3 Hatfield 12.1 Johannesburg and surrounding areas 14.7 Tshwane Other 21.5 Johannesburg CBD 32.9 Tshwane CBD 26.6 (FY16: 28.9) 22.2 (FY16: 19.6) 10.0 (FY16: 9.8) 29.0 (FY16: 29.5) 8.0 (FY16: 8.0) 4.2 (FY16: 4.2) Residential Retail: shops Offices Retail: shopping centres Industrial Parking 11

portfolio analysis: GLA 31 August 2017 GLA (%) by geographical location 40% 35% 30% 25% 20% 15% 10% 5% 0% 3.8 Waverley, Gezina, Moot 4.2 Hatfield 4.6 Tshwane, Arcadia 5.9 Tshwane West 7.0 Silverton and surrounding areas 9.1 Tshwane Other 9.1 Johannesburg and surrounding areas 24.9 Johannesburg CBD 31.4 Tshwane CBD GLA (%) by sector 25.3 (FY16: 25.9) 29.3 (FY16: 29.4) 23.7 (FY16: 22.0) 5.5 (FY16: 5.4) 16.2 (FY16: 17.3) Residential Retail: shops Offices Retail: shopping centres Industrial 12

residential Portfolio sectors: Rental income (%) 2017 2016 Number of properties 70 68 Number of residential units Johannesburg Tshwane 9 509 34% 66% 8 840 38% 62% Gross lettable area (GLA) 394 721 m 2 366 827 m 2 Rental income R415 million R407 million Growth in rental income year-onyear (like-for-like) 2.5% 5.6% Total vacancies at year end (% of GLA) 12.3% 4.0% Core vacancies (% of GLA) 7.2% 3.6% 29% Rental income Average monthly rentals: R3 400 R3 900 for a bachelor unit (average size 27 m 2 ) R4 100 R4 600 for a one-bedroom unit (average size 43 m 2 ) R5 400 R5 900 for a two-bedroom unit (average size 63 m 2 ) * Like-for-like rental income growth, after taking into account occupancy levels, reversions and escalations for the twelve-month period, assuming no major development activity 2.5% * Growth in rental income 13

residential (continued) Portfolio sectors: Rental income (%) Tenant profile analysis, for applications during the year Employed by government 27% of occupants Students 27% of occupants Churn at 45% per annum Average gross salary per application of R28 000 Gross salary above R35 000 7% of occupants Strong demand for residential units Vacancies higher due to: Total vacancies include 400 units at Sharon s Place under development Increased competition in Hatfield and Johannesburg CBD Slower take-up by students impact mainly in Hatfield Affordability a concern in the tough economic environment Bad debts write-offs below 1% reflect strong collection and credit management Ongoing innovation such as roll-out of fibre installation and wifi Response to tough operating environment zero deposit for selective buildings 2.5% * Growth in rental income 29% Rental income 14

retail overview - combined Portfolio sectors: Rental income (%) * Like-for-like rental income growth, after taking into account occupancy levels, reversions and escalations for the twelve-month period, assuming no major development activity 2017 2016 Gross lettable area (GLA) 512 310 m 2 523 635 m 2 Rental income R523 million R533 million Growth in rental income year-onyear (like-for-like)* Total vacancies at year end (% of GLA) 5.9% 5.5% 9.3% 8.5% Core vacancies (% of GLA) 8.0% 8.5% 36.6% Rental income 5.9% * Growth in rental income 15

retail: high street shops Portfolio sectors: Rental income (%) 2017 2016 Gross lettable area (GLA) 420 443 m 2 432 456 m 2 Rental income R380 Million R398 Million Rental income growth (like-for-like)* 5.7% 5.4% Total vacancies (% of GLA) 10.3% 9.1% Core vacancies (% of GLA) 8.8% 9.1% High street shops make up 82% of our retail portfolio by GLA and provide 73% of our retail portfolio rental income 69.4% of our high street shops are in Tshwane 30.6% are in Johannesburg Strong demand in well located CBD retail node CBD retail offers more growth opportunities than traditional shopping centres Retailers are demanding larger tenant installations Lower cost structures (common area, security, cleaning) * Like-for-like rental income growth, after taking into account occupancy levels, reversions and escalations for the twelve-month period, assuming no major development activity 26.6% Rental income 5.7% * Growth in rental income 16

retail: high street shops (continued) Portfolio sectors: Rental income (%) Top 10 retailers by rentable area Top 10 retailers by rental FY17 Lessee GLA (m 2 ) Lessee Rental (R 000) Shoprite Checkers 48 145 Shoprite Checkers 26 237 Pepkor 16 193 Pepkor 22 047 Edcon 13 647 Edcon 15 226 Bidvest 12 325 Bidvest 12 947 Standard Bank 9 591 Foschini Retail Group 11 448 Mr Price Group 6 342 Nedbank 11 127 Foschini Retail Group 6 202 Standard Bank 10 923 AutoZone 5 501 Mr Price Group 8 821 Nedbank 5 388 KFC 7 878 Cambridge Food 4 489 FNB 5 820 Total 127 823 Total 132 475 26.6% Rental income 5.7% Growth in rental income 17

retail: shopping centres Portfolio sectors: Rental income (%) 2017 2016 Gross lettable area (GLA) 91 867 m 2 91 179 m 2 Rental income R143 Million R135 Million Rental income growth (like-for-like) 6.4% 4.7% Total and core vacancies (% of GLA) 4.6% 5.4% We have six high-quality neighbourhood / convenience shopping centres: Johannesburg: Killarney Mall and the Woodmead Value Mart Tshwane: Elardus Park, Waverley Plaza, Gezina City and Blaauw Village (50% held JV) 10% Rental income 6.4% Growth in rental income 18

retail: shopping centres (continued) Portfolio sectors: Rental income (%) Elardus Park Shopping Centre Increase in vacancies to 12% In need of an upgrade Woodmead Value Mart No vacancies Rental growth of 10% Killarney Mall Occupancy levels stable Increase in trading density by 5% and net property income Focus on improving tenant mix Waverley Plaza and Gezina No vacancies 10% Rental income 6.4% Growth in rental income 19

offices Portfolio sectors: Rental income (%) Let to government (% of total rental income from offices) 2017 2016 42.2% 35.7% Other (% of total rental income from offices) 57.8% 64.3% Gross lettable area (GLA) 487 510 m 2 489 750 m 2 Percentage of office space in development / mothballed (opportunities to sell, develop or enter into partnerships) 18.2% 19.4% Rental income R317 Million R269 Million Growth in rental income year-on-year (likefor-like) 8.4% 5.2% Total vacancies at year-end (% of GLA) 33.8% 34.7% Core vacancies at year-end (% of GLA) 15.6% 15.3% * Like-for-like rental income growth, after taking into account occupancy levels, reversions and escalations for the twelve-month period, assuming no major development activity 8.4% * Growth in rental income 22.2% Rental income 20

offices (continued) Portfolio sectors: Rental income (%) Offices comprise of Government office space Corporates Smaller units occupied by SME s, occupancy levels stable Upgrading of offices Wits Technikon R16.1m (let effective 1 March 2017) Midtown R17.3m (first phase of renovation) Strong like-for-like growth mainly due to new government lease for 9 365 m 2 included in results for 12 months (effective 1 March 2016) 22.2% Rental income 8.4% * Growth in rental income 21

industrial Portfolio sectors: Rental income (%) 2017 2016 GLA in Tshwane 217 090 m 2 235 306 m 2 GLA in Johannesburg 53 431 m 2 53 602 m 2 Total GLA 270 521 m 2 288 908 m 2 Rental Income R115 million R110 million Growth in core rental income year-onyear (like-for-like) Total and core vacancies at year-end (% of GLA) 5.8% 3.3% 12.3% 10.8% * Like-for-like rental income growth, after taking into account occupancy levels, reversions and escalations for the twelve-month period, assuming no major development activity 8% Rental income 5.8% * Growth in rental income 22

industrial (continued) Portfolio sectors: Rental income (%) Successful redevelopment of properties demand for upgraded properties Achieving higher rentals after upgrades Upgrade largely tenant driven The Tannery Industrial Park (R12m) improved occupancy and rentals achieved Our competitive advantage Lower cost of occupation in desirable areas 8% Rental income 5.8% * Growth in rental income 23

parking Portfolio sectors: Rental income (%) Average monthly residential rentals (per bay) Average monthly commercial rentals (per bay) 2017 2016 R380 R650 R360 R600 Rental income R61 million R58 million Growth in core rental income yearon-year (like-for-like)* 4.6% 7.2% Focused strategy to increase the number of parking bays in the CBD, due to high demand Strong demand from government and residential tenants 4.2% Rental income Greater focus on increasing revenue through improved efficiencies * Like-for-like rental income growth, after taking into account occupancy levels, reversions and escalations for the twelve-month period, assuming no major development activity 4.6% Growth in rental income * 24

vacancies by sector as at 31 August 2017 % of gross lettable area (by sector) 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 33.8 15.6 10.3 8.8 4.6 4.6 12.3 12.3 12.3 7.2 17.7 10.7 Total vacancies Core vacancies Total Residential Industrial Retail: Shopping centres High street shops Offices Note: Total vacancies include mothballed properties held for development which offer significant redevelopment, partnership or disposal opportunities. The value of these vacancies will be realised over time. Core vacancies exclude lettable area of properties that are mothballed. 25

vacancies Total vacancies in our portfolio as at 31 August 2017 were at 17.7% of our total GLA (2016: 15.6% of our total GLA) Core vacancies were at 10.7% of total GLA (31 August 2016: 9.8%) Core vacancies increased mainly in the residential sector (mainly Hatfield and other strong student nodes) Residential total vacancies include 20 195 m 2 relating to Sharon s Place, One on Mutual and The Manhattan Mothballed office vacancies of 88 742 m 2 for future redevelopment, partnerships or disposal opportunities 26

lease expiry profile Residential (12 months and less) Gross lettable area m² GLA (%) Monthly contractual rent R 000 Rental income (%) 346 027 20.8 34 946 29.4 Monthly commercial 234 506 14.1 15 544 13.1 to 28 February 2018 317 555 19.1 25 461 21.4 to 28 February 2019 170 060 10.2 14 321 12.1 to 29 February 2020 148 485 8.9 13 149 11.1 to 28 February 2021 81 118 4.9 7 984 6.7 Thereafter 73 179 4.4 7 371 6.2 Vacancies 294 132 17.6 0.0 Total 1 665 062 100.0 118 740 100.0 27

lease expiry profile Octodec s portfolio features a mix of short- to long-term leases with the majority of short-term leases providing for a monthly agreement at expiry, which is typical of the residential market and leases with small to medium sized enterprises Government leases concluded for three-year term on average Residential leases short term leases (12 month contracts providing for a month to month arrangement on expiry) Majority of leases for non-national tenants concluded for 1- to 10-year term National tenants leases concluded for 3- to 10-year term 28

recent sales In line with our strategy to dispose of non-core assets, the following properties were sold and transferred during the period under review Total Profit / (loss) Transfer date / consideration on disposal expected Property Location R million R million transfer date Frederika Street Gezina, Tshwane 7.8 0.1 3 Feb 2017 8.0 Karkap Gezina, Tshwane 5.5 0.4 3 Feb 2017 10.7 Munt Street Waltloo, Tshwane 10.9 2.1 28 Feb 2017 7.8 Raschers Johannesburg CBD 6.1 0.2 26 Nov 2016 2.7 Paulefko Tshwane CBD 4.4 0.9 17 Oct 2016 9.7 Blagil Hatfield, Tshwane 2.1 (0.1) 26 Nov 2016 9.9 High Court Building and Somerset House Johannesburg CBD 14.5 (0.1) 26 Nov 2016 Fine Art House and Fine Art Court Johannesburg CBD 17.5 0.3 May 2017 3.5 Valhof Valhalla, Tshwane 9.0 (0.1) May 2017 10.5 Total 77.8 3.7 Exit yield % The profit on the disposal consideration of R77.8 million amounted to R3.7 million, a premium of 4.8% above revalued book value at 31 August 2016. A further 35 non-core properties with a carrying value of R284.3 million have been recommended for disposal by the board. The average carrying value of these properties is R8.1 million. The proceeds from property sales will be used to repay debt, as well as fund the development pipeline. 29

capital expenditure greater than R50 million Management recognises the need to improve hurdle rates of returns and has taken a more cautious approach to development roll-outs going forward Property Location Details The Manhattan One on Mutual Sharon s Place Pretoria Midtown Sunninghill, Johannesburg Tshwane CBD Tshwane CBD Tshwane CBD 50% undivided share in residential development 180 units and parking Upmarket residential development of 142 units, 1 746 m 2 retail and 204 parking bays 400 residential units, 5 660m 2 retail and 289 parking bays Upgrade of 7 133m² office block with 944m² retail and 90 parking bays Total development cost R million Completion date Fully let yield % Loss after interest FY2017 R million 80.9 December 2016 9.0 6.1 155.0 February 2017 7.1 6.3 356.0 Early 2018 - residential July 2017 - retail 56.5 1 st phase complete 2 nd phase subject to securing lease 7.3-9.5 1.0 Total 648.4 13.4 The impact of the let-up affects results negatively. The loss after interest for the 2017 financial year was at R13.4 million or equivalent to 2.5% of distributable income The construction of the residential development Reinsurance House is in the planning phase, which is situated in the Johannesburg CBD. The total development costs is expected to be R90 million This development will only commence if an acceptable yield is achieved at least 8.5% per annum 30

One on Mutual The project was designed to be a more upmarket mixed-use development, attracting midincome tenants working in Tshwane CBD Development cost of: R155m Residential units: 142 Retail: 1 746m 2 (mostly let Pick n Pay and Mugg & Bean) Offices: 443m 2 (not let) Parking bays: 204 One on Mutual Currently over 90% residential occupancy 31

sharon s place Tshwane CBD mixed use development Development cost of: R356m Residential units: 400 Retail: 5 660m² Parking bays: 289 2014 Centre Forum 2016 Sharon s Place construction Retail completed in July 2017 Retail leasing progressing well and is almost 100% let with anchor tenants including Shoprite and Clicks Completion of the 400 residential units delayed further, expected completion in early 2018 2017 Sharon s Place 32

2017 Tshwane, Golden Mile 4our results 1902 Market Place, Pretoria 33

achievements Distribution growth per share of 0.8% to 203.1 cents per share for the twelve month period Like-for-like growth in rental income of 5.3% Net property expense to rental income ratio increased to 30.9% (31 August 2016: 29.6%) Arrears and doubtful debt provisions remain at acceptable levels despite a challenging operating environment Bad debts and movements in doubtful debt provisions as a percentage of rental income 0.9% (31 August 2016: 0.8%) Tenant arrears at 3.9% of gross revenue (3.6% at 31 August 2016) Balance sheet strengthened Loan to value ratio of 37.1% (31 August 2016: 38.3%) Proceeds of R263 million from dividend reinvestment programme Proceeds from disposal of properties of R77 million Rental income Like for like growth 5.3% Distribution growth of 0.8% 34

achievements (continued) 0.7% increase in net asset value (NAV) to R29.33 per share Interest rate risk reduced 82.1% hedged through interest rate swap contracts Successful refinance of Domestic Medium Term Note Programme (DMTN) commercial paper notes Four major projects under construction during the period with two successfully completed Some major renovations to existing properties recently completed (Wits Technikon) in JHB CBD Rental income Like for like growth 5.3% Distribution growth of 0.8% 35

challenges Tough economic and operating environment Like-for-like growth in rental income of 5.3%, under pressure Rise in costs (finance cost, utilities, assessment rates and repairs and maintenance) Higher interest rates (all-in weighted average cost of funding at 9.2% at 31 August 2017) Core vacancies in portfolio (excludes properties held for redevelopment) at 10.7% (31 August 2016: 9.8%) Dilutionary impact in the short term on distribution growth due to: Let-up phase of new residential developments Major upgrades to properties Properties acquired with vacancies, for redevelopment Council service delivery challenges New development impact 36

distributable earnings simplified income statement R 000 % Change Reviewed 31 August 2017 Audited 31 August 2016 Revenue earned on contractual basis 5.4% 1 836 251 1 742 871 Like-for-like growth in rental income of 5.3% Operating costs 6.7% (843 636) (790 529) Increased cost pressures Net rental income from properties 4.2% 992 615 952 342 Administrative costs 9.6% (77 813) (71 005) Increased corporate costs Operating profit 3.8% 914 802 881 337 Interest income 18 094 10 138 Loan advanced to JV partners Share of income from Joint Ventures 12 238 14 026 4 equity accounted JVs Distributable profit before finance costs 945 134 905 501 Finance costs 3.5% (408 702) (394 751) Increase in interest rates Shareholder distributable earnings 5.0% 536 432 510 750 Number of shares in issue (000) 266 864 254 551 Dividend per share (cents) 203.10 201.50 % growth in distribution 0.8 37 Note: Shareholders will be entitled to elect to reinvest the cash dividend in return for shares

condensed consolidated statement of financial position R'000 Reviewed 31 August 2017 Audited 31 August 2016 ASSETS Non-current assets 12 568 875 12 219 234 Investment properties 12 153 834 11 776 839 320 properties 2016 311 properties 2017 Plant and equipment 5 300 6 810 Straight-line rental income accrual 110 864 115 849 Tenant installation and lease costs 44 550 57 133 Other financial assets 75 000 51 849 Derivative financial instruments 1 847 38 172 Investment in joint ventures 177 480 172 528 4 equity accounted JVs - 50% held Current assets 560 397 373 661 Receivables 145 291 131 552 Cash and cash equivalents 130 756 69 109 Non-current assets held for sale 284 350 173 000 Properties recommended for sale at 31 August 2017 13 129 272 12 592 895 EQUITY AND LIABILITIES Equity 7 828 229 7 413 800 Stated capital 4 221 477 3 958 207 Non-distributable reserves 3 269 053 3 112 855 Retained earnings 337 699 342 708 Non-current liabilities 3 381 370 4 106 208 Interest-bearing borrowings 3 253 517 4 023 911 Derivative financial instruments 47 421 9 308 Deferred taxation 80 432 72 989 Current liabilities 1 919 673 1 072 887 Interest-bearing borrowings 1 572 817 755 116 Commercial paper notes, short term bank finance Non-interest bearing borrowings 342 548 317 771 Derivative financial instruments 4 308-13 129 272 12 592 895 Shares in issue ('000) 266 864 254 551 Net asset value (NAV) per share (cents) 2 933 2 913 Loan to investment value (LTV) ratio (%) 37.1% 38.3% 38

cash flow for the year ended 31 August 2017 R'000 1 000 000 800 000 600 000 400 000 200 000 0 69 109 948 325 (421 107) (536 536) 263 270 77 200 (316 812) 47 307 130 756-200 000-400 000-600 000 Balance end of year Increase in interest bearing borrowings Acquisition and improvements to investment property Disposal of investment property Issue of new shares Dividend paid Net finance costs Cash generated from operations Balance 1 September 2016 39

capital management funding at 31 August 2017 Prudent management of debt LTV at 37.1% (target maximum of 40%) Interest rate hedging maintain at levels of at least 80% Proactively address expiries of loans and swaps in the 2018 FY Debt capital market issuance R1 116.0m of total borrowings (currently at 23.1%) Continue to pay down debt through sales of non-core properties Unutilised banking facilities of R625.9 million R 000 Interest rate Total borrowings Banks 3 710.30 9.1% DMTN programme 1 116.0 8.5% TOTAL BORROWINGS 4 826.30 9.0% Cost of swaps 0.2% TOTAL BORROWINGS 4 826.30 9.2% Loan to value 37.1% Weighted average cost of borrowings all-in cost, including swaps 9.2% Interest rate hedging percentage of borrowings 82.1% Weighted average term of fixed rate loans/swaps 1.6 years Weighted average term of debt 1.4 years 40

funding as at 31 August 2017 31 August 2017 Standard Bank R925m 31 August 2016 Standard Bank R1 025m DMTN programme commercial paper R1 116m DMTN programme commercial paper R755m Nedbank R2 785m Nedbank R2 999m 41

interest bearing debt expiry profile as at 31 August 2017 Expiry profile per financial year (Rm and %) Rm 3 000 2 500 2 000 1 500 1 000 500 0 32.6% 1 573 50.5% 2 440 10.9% 525 Secured loans Corporate paper 6.0% 31 Aug 2018 31 Aug 2019 31 Aug 2020 31 Aug 2021 288 Debt maturing in the next 12 months: Short term borrowings are commercial paper (DMTN programme) of R958m and bank secured loans of R615m To date, R239m of the commercial paper notes have been successfully refinanced for a 12-month term at an all-in cost of 130 bps above JIBAR Debt maturing after 31 August 2017 Higher cost of interest anticipated 42

interest rate hedges expiry profile Expiry profile per financial year (Rm and %) Rm 1 600 1 400 1 200 1 000 800 600 400 200 0 34.1% 34.4 1 361 1 351 31 Aug 2019 31 Aug 2018 12.6% 500 31 Aug 2020 18.9% 750 31 Aug 2021 Fixed rate loans R412 million Swaps total of R3.550 billion Average weighted expiry 1.6 years At 31 August 2017, interest rates in respect of 82.1% of borrowings hedged R1.250 billion of swap contracts commenced effective from 3 January 2017 Weighted term 3.6 years All-in weighted cost of 8.11% 43

2014 012central original site 5outlook 2017 012central 44

outlook Continued lack of business and consumer confidence Increasing competition CBD Johannesburg and Hatfield (residential) Strong operational focus to continue Well-positioned to continue to take advantage of opportunities in the CBDs CBD retail continues to generate strong demand from National and independent tenants Strong demand for affordable and secure, quality residential accommodation Residential developments to significantly uplift the Tshwane CBD node where we have a strategic concentration of assets One on Mutual letting well above expectation Sharon s Place will be ready for occupation in early 2018 45

outlook (continued) Continue to unlock value future development opportunities under discussion Exploring new product offering (Nano units) Consideration of residential opportunities outside of Gauteng - ongoing Project returns will be improved, hurdle yield required of above 8.5% Disposal of non-core or non-performing properties will remain a focus area Forecast Impact on distributions during let-up phase Current forecast growth in distributable income per share No growth for 2018 FY Positive growth in 2019 FY 46

investment case Strategy to remain the same and diversify geographically Sustainable model urban renewal and middle-class growth Well-balanced portfolio with significant synergies across sectors in the CBDs Strong development pipeline unlock value of current portfolio (new and redevelopments) Proven track record hands-on approach delivering steady returns Well-positioned to continue to unlock value and navigate the challenging economic environment Steady and sustainable value creation 47

2016 Kerk Street Building, Johannesburg 1936 Anstey s Building after modernisation 6 2011 The building before redevelopment questions and answers 48

Jeffrey Wapnick Anthony Stein 7contact us www.octodec.co.za Managing Director Tel: +27 12 319 8708 e-mail: jeffw@octodec.co.za Financial Director Tel: +27 12 319 8780 e-mail: anthony@octodec.co.za 49

8appendices 2017 One on Mutual completed 2015 One on Mutual under construction 50

corporate structure 39% Wapnick family & directors 38% Institutional investors 23% Other Top 5 Beneficial institutional shareholders 5.2% Old Mutual Group 4.9% Stanlib 4.8% Government Employees Pension Fund 3.8% Nedbank Group 2.3% Eskom Pension & Provident Fund 51

our strategy Offer innovative property investment opportunities that create and deliver long-term sustainable returns by: Building a diversified portfolio in the Tshwane and Johannesburg CBDs and surrounding areas with an exposure to residential, office, retail and industrial sectors Actively promoting urban renewal in the Tshwane and Johannesburg CBDs 1899 Palace of Justice, Pretoria Increase the profitability of our existing portfolio by: Continually improving the quality of our portfolio Enhancing our tenant profile Developing well-located properties 2016 Tshwane (previously Pretoria) 52

our strategy (continued) Increase the profitability of our existing portfolio by: Concentration of properties in Tshwane and Johannesburg CBDs, which makes it easier to manage and extract value from our portfolio Pursuing acquisitions that offer strategic value and sustainable yield-enhancing opportunities Focusing on growing our residential portfolio in the medium term Recycling capital from low growth, poor quality assets to high growth, high quality assets Enhancing returns through effective mix of debt and equity to optimise capital structure Management of interest and liquidity risk 1880 Church Street South, Pretoria 2016 Tshwane (previously Pretoria) 53

top 10 properties Account for 25.0% of the Octodec investment property portfolio by value Property Location Sector Size (m 2 ) The Fields Hatfield, Tshwane Mixed use 54 026 Killarney Mall Killarney, Johannesburg Shopping centre 46 945 Centre Walk Tshwane CBD Mixed use 25 417 Woodmead Value Mart Woodmead, Johannesburg Shopping centre 18 093 Kempton Place Kempton Park Mixed use 32 507 Sharon s Place Tshwane CBD Mixed use 5 647 Louis Pasteur Medical Tshwane CBD Mixed use 22 314 Nedbank Plaza Arcadia, Tshwane Mixed use 23 177 Steyn s Place Tshwane CBD Mixed use 15 638 Jeff s Place Tshwane CBD Residential 14 771 54