GROWTHPOINT PROPERTIES LIMITED INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2011
2 AGENDA Introduction and Highlights Financial Review Operational Overview Acquisitions, Disposals, Developments and Commitments Prospects Annexures Woodmead Retail Park, Woodmead Growthpoint Business Park, Midrand Growthpoint Industrial Estate, Meadowdale, Germiston
INTRODUCTION AND HIGHLIGHTS
4 INTRODUCTION TO GROWTHPOINT The largest listed property company on the JSE with property assets valued at R50,2 billion Market capitalisation of R31,6 billion at 31 December 2011 (R18.55 per linked unit) Diversified property portfolio comprising 412 properties in RSA, 40 properties in Australia ( GOZ ) which is 61% owned and a 50% interest in the properties of the V&A Waterfront Retail Office Industrial V&A Waterfront Australia Office Industrial R12,2 billion R14,3 billion R7,2 billion R4,8 billion R11,7 billion AUD 1,43 billion Fully integrated internally managed property company employing 446 staff
5 HIGHLIGHTS FOR THE PERIOD UNDER REVIEW 10.0% Return to investors for the 6 months (annualised) Income yield 7.4% Capital growth 2.6% Distribution per linked unit 67,8 cents 6.1% growth R469 million additional investment in Growthpoint Properties Australia 43.6% Return on R2,0 billion Australian investment for the 6 months (annualised) Growthpoint s foreign unitholding doubled in the last 2 years Total cost at 31 Dec 2011 R2,0 billion Income yield 11.7% Dec 2011 13.7% 233 million units Market value at 31 Dec 2011 R2,8 billion Capital growth 31.9% Dec 2009 7.2% 111 million units Overall reduction in vacancies Dec 2011 4.0% Jun 2011 5.0%
6 HIGHLIGHTS FOR THE PERIOD UNDER REVIEW (CONT D) Repayment of CMBS notes R2,0 billion Additional Corporate Bonds raised Equity raised R500 million 4.25 years 145 bps margin 100 million linked units R260 million 5.00 years 150 bps margin R1,8 billion Inclusion in JSE - Socially Responsible Investment Index (SRI) Most empowered property company on JSE 5 th year
7 HIGHLIGHTS SUBSEQUENT TO 31 DECEMBER 2011 Additional investment in Growthpoint Properties Australia R1,1 billion participation in rights issue increasing unitholding to 64.5% Corporate bond raised R750 million 3 years 135 bps margin Commercial paper rolled and increased from R300 million to R400 million 3 months 27 bps margin
8 GROWTH IN DISTRIBUTION Cents 31 Dec 2011 distribution 106,5 114,6 121,2 131,0
9 GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION R bn Unit price (cents) NTAV per unit (cents) Cents 2000 1600 1200 800 400 0 2003 2004 2005 2006 2007 2008 2009 2010 2011
FINANCIAL REVIEW
11 SIMPLIFIED CONSOLIDATED INCOME STATEMENT Dec 2011 R million Dec 2010 R million Increase Gross property revenue 2 681 2 126 26.1% Property expenses (609) (488) 24.8% Net property income 2 072 1 638 26.5% Other operating expenses (77) (61) 26.2% Net property income after operating expenses 1 995 1 577 26.5% Finance costs (833) (584) 42.6% Finance income 74 39 89.7% Adjustment for non-controlling interest (83) (28) 196.4% Profit before debenture interest 1 153 1 004 14.8% Distribution for the period 1 153 1 004 14.8% Note: Refer to Annexure 9, 20 and 25 for the simplified income statements of RSA, V&A and GOZ
12 CONSOLIDATED INCOME STATEMENT (EXTRACTS) Dec 2011 R million Dec 2010 R million Increase Net property income after operating expenses 1 995 1 577 26.5% RSA 1 479 1 341 10.3% V&A 134-100.0% GOZ 382 236 61.9% Finance costs (833) (584) 42.6% RSA (643) (452) 42.3% V&A (1) - 100.0% GOZ (189) (132) 43.2% Finance income 74 39 89.7% Adjustment for non-controlling interest (83) (28) 196.4% Profit before debenture interest 1 153 1 004 14.8% Distribution for the period 1 153 1 004 14.8% RSA and V&A 1 040 925 12.4% GOZ 113 79 43.0% Note: 50% interest in V&A Waterfront included for 6 months in Dec 2011 (Dec 2010:Nil) Average exchange rate of R7.84/AUD (Dec 2010: R6.72/AUD) for GOZ The number of properties in Australia has grown from 33 properties in Dec 2010 to 40 in Dec 2011
EXPENSE TO INCOME RATIOS 13 RSA V&A Property expense ratio (%) Operating expense ratio (%) Property expense ratio (%) Operating expense ratio (%) 30% 25% 27.2% 27.6% 27.6% 2.8% 2.7% 2.5% 33.3% 1.0% 32.0% 0% 20% 15% 10% 5% 24.4% 24.9% 25.1% GOZ 0% Dec 2011 Jun 2011 Dec 2010 Property expense ratio (%) Operating expense ratio (%) 14.9% 14.3% 13.9%
14 CONSOLIDATED BALANCE SHEET (EXTRACTS) Dec 2011 R million Jun 2011 R million Dec 2010 R million Jun 2011 Dec 2011 Increase/ (decrease) Property portfolio * 50 192 45 702 38 594 9.8% RSA 33 623 32 495 31 899 3.5% V&A 4 842 4 783-1.2% GOZ 11 727 8 424 6 695 39.2% Borrowings ** 17 997 19 104 13 362 (5.8%) RSA 12 953 14 249 9 653 (9.1%) GOZ 5 044 4 855 3 709 3.9% Linked unitholders interest 27 442 24 884 24 038 10.3% RSA 26 529 24 328 21 991 9.0% V&A (3) (3) - - GOZ 916 559 2 047 63.9% * Includes R418m of properties reclassified as held for sale (Jun 2011 R539m, Dec 2010 R571m) ** Excludes fair value adjustments
PROPERTY PORTFOLIO Annexures RSA Dec 2011 R million V&A Dec 2011 R million GOZ Dec 2011 R million 15 Total Dec 2011 R million Balance at 30 June 2011 32 495 4 783 8 424 45 702 Acquisitions 3 & 23 140-1 713 1 853 Disposals 4 & 23 (416) - (43) (459) Foreign exchange translation - - 1 175 1 175 Developments and capital expenditure 440 59 270 769 Subtotal 32 659 4 842 11 539 49 040 Fair value adjustment 964-188 1 152 * Balance at 31 December 2011 33 623 4 842 11 727 50 192 Long-term property assets 33 205 4 842 11 727 49 774 Properties held for sale 5 418 - - 418 * Fair value adjustment represents 2.3% of investment property portfolio
BORROWINGS LOAN TO VALUE AND INTEREST COVER RATIO NET ASSET VALUE & NET TANGIBLE ASSET VALUE 16 RSA % LTV (incl V&A) * Interest cover ratio (incl V&A) times NAV (Per linked unit consolidated) NTAV (Per linked unit consolidated) GOZ % LTV ** Interest cover ratio times * Based on nominal value of interest bearing borrowings and net of cash balances ** Based on GOZ s Syndicated Facility Agreement
17 BORROWINGS RSA Dec 2011 R million % of total RSA debt Jun 2011 R million % of total RSA debt Secured debt: 8 293 64.0% 11 249 78.9% Bank debt 7 093 54.7% 8 080 56.7% Institutional financier 1 200 9.3% 1 200 8.4% CMBS - - 1 969 13.8% Unsecured debt: 4 660 36.0% 3 000 21.1% Bank debt 2 000 15.4% 2 000 14.0% Corporate bonds 1 760 13.6% 1 000 7.1% Commercial paper 900 7.0% - - Total RSA debt 12 953 100.0% 14 249 100.0% GOZ Secured debt: Bank debt 5 044* 4 855* Consolidated debt 17 997 19 104 Note: Refer to Annexure 16 for a breakdown of debt * Includes a cumulative foreign exchange difference of R1,0 billion (30 Jun 2011: R390,0 million)
18 BORROWINGS (CONT D) 100 million linked units issued for R1,8 billion, utilised for repayment of R2,0 billion of CMBS notes LTV (SA) decreased from 37.8% at 30 June 2011 to 33.1% at 31 December 2011 93.1% of interest rates fixed for a weighted average of 5.6 years Growthpoint currently enjoys the following Moody s ratings, with a stable outlook: Global long-term Baa3 Global short-term P-3 National long-term A-2.za National short-term P-2.za Subsequent to 31 December 2011: Hatfield Gardens, Hatfield, Pretoria R750 million corporate bond issued for 3 years at 135 bps for participation in GOZ rights issue R300 million commercial paper issue rolled for 3 months at Jibar plus 27 bps and upsized to R400m
OPERATIONAL OVERVIEW
20 PORTFOLIO ANALYSIS Property portfolio by value Property portfolio by GLA Retail 23.3% 24.3% Office Industrial 3.5% 16.4% 17.5% V&A 9.6% GOZ 21.7% 14.3% 28.5% 40.9% Net property income 19.4% 25.1% 6.6% 17.3% 31.6%
21 RSA - RETAIL Growth in national retail exceeded expectations in Q4/2011 but likely to weaken in 2012 Vacancy: Dec 2011 % Dec 2010 % Turnover growth at Growthpoint s top centres outperformed national retail sales with double digit growth at Brooklyn, Woodmead and Walmer Park Arrears were impacted negatively by local authorities incorrect billings. Northgate rates back charge of R22 million in December 2011, R18,8 still outstanding from tenants. Growthpoint s share is 50% Vacancy factor deteriorated due to intentional vacancies under development. If excluded, vacancy factor is 2.7% Extensions and redevelopment projects in progress: Brooklyn Mall R201 million Waterfall Mall R150 million OK Empangeni R40 million Total portfolio vacancy 3.6 2.4 Top 10 centre vacancy 1.7 0.6 Balance of portfolio 5.2 3.9 Arrears: R million R million Total 26,4 17,7 Bad debt provision 4,9 5,1 Renewals: % % Renewal success rate 82.4 80.6 Renewal growth 7.1 4.9 Booklyn Mall, Pretoria
22 RSA - OFFICE Moderate economic activity continues to put pressure on vacancies and rentals Vacancy: Dec 2011 % Dec 2010 % Drop in vacancies in all regions has been achieved through focussed letting strategies and improved broker relationships. New lets of 64 657m² in the last six months, reducing office vacancy percentage to 6.7% Renewed 86 769m² of leases, improving the renewal rate to 72.6%. Renewal rentals under pressure with market reducing asking rentals and increasing tenant incentives Total portfolio 6.7 8.1 Arrears: R million R million Total 14,1 12,0 Bad debt provision 5,8 5,9 Renewals: % % Renewal success rate 72.6 54.9 Renewal growth (4.4) 5.3 Developments in progress at Grosvenor, Mayfair on the Lake and Menlyn Corner, which will increase GLA by 19 792m² by the end of 2012 Expect the remainder of the year to be challenging. Vacancy levels are not expected to change significantly Constantia Office Park, Roodepoort
23 RSA - INDUSTRIAL Trading conditions have improved. Expected to remain stable during 2012 Market sentiment, specifically manufacturing and factory output data remaining cautious Continued demand for large warehousing and distribution facilities Mini and Midi Units, Light Manufacturing still marginal and showing slowest recovery Vacancies have reduced substantially will be difficult to maintain at these levels Positive rental growth, favourable escalations increasing lease periods (>3 yrs) and Utilities management and occupancy cost remain an area of concern Short term view: Sector has stabilised Marginal growth New development activity increasing Many redevelopment opportunities Vacancy: Dec 2011 % Dec 2010 % Portfolio 2.7 5.5 Arrears: R million R million Total 8,8 11,4 Bad debt provision 4,6 6,0 Renewals: % % Renewal success rate 73.8 69.1 Renewal growth 5.1 7.1 Adcock Ingram, Midrand
24 V&A WATERFRONT Net property income Property portfolio by value 8.0% 12.1% 12.8% 13.2% 24.4% 55.5% Retail 5.8% 14.8% 53.4% Office Fishing & Industrial Hotel Bulk
25 V&A WATERFRONT (CONT D) RETAIL Turnover growth at the V&A has outperformed the national market and has been particularly strong over the last five months Rental in the Victoria Wharf is in line with our expectations Slow re-letting of refurbished Clock Tower space is causing slight shortfall to budget Vacancies in the Victoria Wharf are 1.3%, however, retail vacancies in Clock Tower are 3% currently Arrears slightly inflated due to rates arrears following recent rates valuation settlement with City of Cape Town Renewals in luxury wing which fall due in March 2012 are largely agreed and the negative reversion minimised Vacancy: Dec 2011 % Portfolio 2.1 Arrears: R million Total 30,1 Bad debt provision 13,7 Renewals: % Renewal success rate 94.7 Renewal growth 6.9
V&A WATERFRONT (CONT D) OFFICE Office rental income marginally below target due to slow re-letting of refurbished Clock Tower Office vacancies at historic high of 6% again reflecting slower letting of refurbished Clock Tower 80% under offer Should this be successfully let it will bring vacancies down to normal 4% level 26 HOTEL Turnover rental negatively impacted by reduced hotel occupancy and average revenue per room INDUSTRIAL Industrial rentals and Marina revenue are strong and marginally ahead of budget
27 GROWTHPOINT PROPERTIES AUSTRALIA GOZ Net property income Property portfolio by value 69.3% 30.7% 59.2% 40.8% Office Industrial
38-40 Annandale Rd, Tullamarine, VIC 32 Cordelia St, South Brisbane, QLD 28 GROWTHPOINT PROPERTIES AUSTRALIA GOZ (CONT D) HY2012 results in line with guidance Statutory profit: $26.9 million, an 8.2% increase from HY2011 Distributable profit: $24.9 million, a 57.5% increase from HY2011 8.7cps distribution, 3.6% above HY2011 (7.5 cps for GOZN) 9.1% total return for calendar year to 31 December 2011 Capital management Extended average debt maturity profile to 4 years Tranched debt maturities LVR 49.7%; ICR 2.1 times 99% of debt is now hedged Comparative Return & Equity Growth Significantly expanded market capitalisation and free float Outperformed A-REITs and broader market 2 rights offers fully taken-up raising $289 million (including underwriting by GRT) Quality investment property portfolio Outlook & Summary 2.1% rise in property portfolio value due to property valuation increases 100% occupancy 100% tenant retention Diversified by location, sector and tenant Diversified property portfolio valued at over $1.5 billion Quality tenants with WALE of 7.8 years and growing rental Continuation of business model: providing secure, growing returns from rent FY2012 guidance of 17.5 cps for GOZ
ACQUISITIONS, DISPOSALS, DEVELOPMENTS AND COMMITMENTS
30 ACQUISITIONS, DISPOSALS AND DEVELOPMENTS Retail Office Industrial V&A GOZ Total Purchase price of acquisitions - 140 - - 1 713 1 853 Selling price of disposals 266 20 130-43 459 Developments and capex 69 159 212 59 160 659 Note: Refer to Annexures 3, 4 and 23 for yields on Acquisitions and Disposals In aggregate properties sold at book value however representing a profit on cost of R129m Properties where amounts in excess of R20,0m were spent during the period include: Grenville (industrial) Greenbushes (industrial) Growthpoint Industrial Estate (industrial) OK Empangeni (retail) Adcock Ingram (industrial) R61,2m R39,4m R29,4m R28,7m R28,3m
COMMITMENTS 31 RSA Sector R million Commitments for developments Brooklyn/Design Square Retail 134,8 Hatfield Festival Office 237,0 Meerlus Office 73,9 Grosvenor Corner Office 50,7 Ellerines Industrial 54,9 Other below R50,0 million 210,6 TOTAL 761,9 Commitments for acquisitions Alberton City (remaining 64.3%) Retail 417,9 Menlyn Corner Office 208,5 Sandhurst Office Park (33% share) Office 73,0 Other below R50,0 million 10,8 TOTAL 710,2 V&A Allan Gray (Growthpoint s 50% share) Office 259,0 GOZ AUD million 219 247 Pacific Highway Office 82,2 Energex Office 33,5 TOTAL 115,7
PROSPECTS
33 PROSPECTS It is expected that growth in distribution per linked unit for the full year will be in line with the growth rate achieved in the 6 months ended 31 December 2011 (This profit forecast has not been reviewed or reported on by Growthpoint s independent external auditors) GOZ and V&A are now major contributors to the overall performance of Growthpoint with between 25% and 30% of total net property income expected to be contributed by these 2 investments R1,05 billion investment in GOZ on 25 January 2012 will be enhancing V&A expected to deliver just over 7.0% return on cost of developed properties (Growthpoint s 50% share = R4.25 billion), in line with due diligence forecast Moderate forecast GDP growth of between 2.5% and 3.0% is insufficient to stimulate strong demand for retail, office and industrial space Overall vacancy factor is unlikely to reduce much below the current 4.0%, with negative rent reversions in the office sector unlikely to change until such time as national office vacancies across all grades start to improve Continued focus on tenant retention, debt collection and credit vetting, letting, cost management and development and redevelopment opportunities
34 PROSPECTS More focused and active treasury management through the appointment of a dedicated corporate treasurer Access to liquidity remains good with strong demand for Growthpoint s corporate bonds and equity, as well as a willingness by all the major banks and life companies to provide debt facilities to Growthpoint Significant increases in electricity, rates and taxes and other administered costs at rates well in excess of inflation and contractual annual rental increases, coupled with a deteriorating infrastructure and reduced service levels. The impact of this on the overall cost of occupation and our cost to income ratio remains a major concern
THANK YOU
ANNEXURES
37 CONTENT Annexure 1 Growthpoint s Property Portfolio Annexure 2 Split of RSA Property Portfolio (Excl V&A) Annexure 3 Acquisitions RSA (Excl V&A) Annexure 4 Disposals RSA (Excl V&A) Annexure 5 Non-Current Assets Held for Sale Annexure 6 Top 12 RSA Retail Properties by Value (Excl V&A) Annexure 7 Top 12 RSA Office Properties by Value (Excl V&A) Annexure 8 Top 12 RSA Industrial Properties by Value (Excl V&A) Annexure 9 Simplified Income Statement (Extracts) RSA (Excl V&A) Annexure 10 Net Property Income Analysis RSA (Excl V&A) Annexure 11 GLA and Vacancy Reconciliation RSA (Excl V&A) Annexure 12 Lease Expiry by Sector RSA (% of GLA) Annexure 13 Lease Expiry by Sector RSA (% of Gross Monthly Rental) Annexure 14 Unitholders Holding > 1% at Dec 2011
38 CONTENT (CONT D) Annexure 15 Linked Units Issued Annexure 16 Detailed Borrowings Annexure 17 Debt Expiry Profile RSA Annexure 18 Interest Rate Fix Expiry Profile for RSA borrowings Annexure 19 Split of V&A Property Portfolio Annexure 20 Simplified Income Statement (Extracts) V&A Annexure 21 Lease expiry by sector V&A Annexure 22 Split of GOZ Property Portfolio Annexure 23 - Acquisitions and Disposals GOZ Annexure 24 Top 12 GOZ Properties by Value Annexure 25 Simplified Income Statement (Extracts) GOZ Annexure 26 Net Property Income Analysis GOZ Annexure 27 - GLA and Vacancy reconciliation GOZ Annexure 28 - Lease expiry by sector GOZ 572-576 Swan St, Richmond, VIC
39 ANNEXURE 1 - GROWTHPOINT S PROPERTY PORTFOLIO Retail Office Industrial RSA Total V&A GOZ Number of properties 48 134 230 412 1 40 GLA (m²) 945 782 1 173 693 2 213 774 4 333 249 192 039 885 205 Vacancy (m²) 33 582 78 125 59 768 171 475 4 079 29 Vacancy (%) 3.6% 6.7% 2.7% 4.0% 2.1% - Valuation (R m) 12 180 14 282 7 161 33 623 4 204** 11 727 Value per m² (excl bulk) 12 863 11 997 3 104 7 643 21 891 13 248 Average gross rental (per m²/month) R119 R112 R34 R73 R153 AUD 138* Forward yield 8.4% 8.9% 10.5% 9.1% 7.4% 8.3% Average in force escalations 7.9% 8.8% 8.6% 8.4% 8.5% 3.2% Weighted average lease period (years): - By gross rental 3.1 4.8 2.9 3.8 6.0*** 7.8 - Excluding Investec - 3.4-3.2 - - Renewal success rate 82.4% 72.6% 73.8% 74.9% 94.7% 100.0% Weighted average renewal growth 7.1% (4.4%) 5.1% 1.63% 6.9% 4.2% Weighted average future escalations on renewals 8.1% 8.8% 8.6% 8.5% 7.2% 3.5% Note: V&A is included at our 50% interest. GOZ is reflected at 100% * Based on net rental per annum ** Excluding value attributable to the rights to undeveloped bulk *** Various leases in the V&A were excluded in the average lease period calculation. When these leases are included the average lease period increases to 12.0 years
40 ANNEXURE 2 - SPLIT OF RSA PROPERTY PORTFOLIO (EXCL V&A) Value Value 4% 3% 2% 21% 36% 12% 9% 50% Greater JHB Retail Office Industrial 43% GLA 20% GLA Western Cape Pretoria KwaZulu-Natal Eastern Cape North West 1% 2% 3% Other 22% 13% 51% 8% 55% 27% 18%
41 ANNEXURE 3 - ACQUISITIONS RSA (EXCL V&A) Purchase Price R million Sector Initial Yield Ernst & Young ** 71,6 Office - 144 Oxford Road, Rosebank 43,3 Office Land Merck Longmeadow ** 10,7 Office - Ciros House, Rivonia * 9,7 Office 10.5% Sovereign Quay * 4,4 Office - * Building consolidated into currently owned property ** Payment for rights to cancel bare dominium structures 139,7
42 ANNEXURE 4 - DISPOSALS RSA (EXCL V&A) Brooklyn/Design Square (7% sold), Pretoria Selling price R million Sector Profit/ (loss) on cost Profit/ (loss) on book value Yield 120,3 Retail 54,9 - - Ruimsig Shopping Centre, Roodepoort 73,0 Retail 6,2 (0,1) 8.9% Bronkhorstspruit Mall, Bronkhorstpruit 44,1 Retail 27,7-9.9% Otjiwarongo, Namibia 28,4 Retail 14,2 0,2 11.4% Fountain Grove, Hyde Park 15,0 Office 3,8-10.4% Chamberlain, Durban 33,3 Industrial 8,3 0,1 13.3% Metro Cash & Carry, East London 20,0 Industrial (2,1) (0,6) 7.6% Boston Circle, Cape Town 19,0 Industrial (5,4) - 10.5% Norbertville, Roodepoort 16,0 Industrial 5,5 (0,1) 7.5% Kelsteel, Kempton Park 15,5 Industrial 2,7 (0,6) 12.6% Rittel, City Deep 10,0 Industrial 3,2-12.0% Vereeniging Road 5, Vereeniging 8,1 Industrial 4,1-6.4% Sheidan, Pretoria 5,0 Industrial 4,3 0,1 - Gazelle, Cape Town 3,2 Industrial 1,9 (0,2) 6.3% Office Montclare residential units, Cape Town 5,1 Residential - 1,2 416,0 129,3 - -
ANNEXURE 5 NON-CURRENT ASSETS HELD FOR SALE Properties held for sale Sector Fair value Dec 2011 R million Northcliff Square Shopping Centre, Northcliff Retail 40,5 The Gallery, Milnerton Retail 21,5 Metropark, CBD Pretoria Office 123,1 174 Visagie Street, CBD Pretoria Office 76,6 Meersig, Centurion Office 71,4 The Ridge, Parktown Office 33,6 ABSA Bruma, Bruma Lake Office 22,4 230 Jan Smuts Avenue, Dunkeld West Office 18,0 Montclare Residential Units, Cape Town Residential 1,2 Sarmcol, Amalgam Industrial 8,5 Laser Kimberley Erf 12802, Kimberley Industrial 1,6 Total 418,4 43
ANNEXURE 6 - TOP 12 RSA RETAIL PROPERTIES BY VALUE (EXCL V&A) 44 Building Fair value R million 1 Brooklyn/Design Square (75%), Brooklyn, Pretoria 1 291 54 078* 2 Lakeside Mall, Benoni 993 67 397 3 Waterfall Mall, Rustenburg 967 49 288 GLA m² Value 29.3% 4 La Lucia Mall, La Lucia, Durban 800 36 351 5 Kolonnade (50%), Montana Park, Pretoria 696 36 368* 70.7% 6 Northgate (50%), Northriding, Johannesburg 663 45 286* 7 Walmer Park Shopping Centre, Walmer Park, Port Elizabeth 653 38 317 8 Woodmead Retail Park, Woodmead, Johannesburg 617 54 891 Top 12 Properties Balance of Retail Properties 9 The Constantia Village, Constantia, Cape Town 606 20 396 10 River Square Shopping Centre, Three Rivers, Vereeniging 536 38 910 11 Golden Acre, CBD, Cape Town 424 33 686 GLA 12 Longbeach Mall, Noordhoek, Cape Town 365 30 794 Subtotal 8 611 505 762 36 Balance of the sector 3 569 440 020 48 Total for the RSA sector 12 180 945 782 * GLA included ofthe % of the undivided share held by Growthpoint Top 12 Properties 46.5% Balance of Retail Properties 53.5%
ANNEXURE 7 - TOP 12 RSA OFFICE PROPERTIES BY VALUE (EXCL V&A) 45 Building Fair value R million 1 Investec, Sandton 1 837 70 945 GLA m² Value 2 The Place, Sandton 770 33 979 3 Constantia Office Park, Roodepoort 740 71 499 4 Montclare Place, Claremont, Cape Town 458 29 446 5 Growthpoint Business Park, Midrand 439 63 656 6 Investec, CBD, Cape Town 337 12 836 7 N1 City Hospital, Goodwood, Cape Town 313 14 022 8 Central Park, Midrand 306 34 085 9 Hatfield Gardens, Hatfield, Pretoria 302 25 556 10 Sunnyside Ridge Office Park, Parktown, Johannesburg 258 29 546 11 Fredman Towers, Sandton 225 15 005 12 The District, Woodstock, Cape Town 215 18 413 Subtotal 6 200 418 988 122 Balance of the sector 8 082 754 705 134 Total for the RSA sector 14 282 1 173 693 56.6% Top 12 Properties Balance of Office Properties GLA 64.3% 43.4% 35.7% Top 12 Properties Balance of Office Properties
ANNEXURE 8 - TOP 12 RSA INDUSTRIAL PROPERTIES BY VALUE (EXCL V&A) 46 Building Fair value R million 1 Growthpoint Industrial Estate, Meadowdale, Germiston 354 59 165 2 Hilltop Industrial Estate, Elandsfontein 176 69 571 3 Adcock Ingram, Midrand 167 19 150 GLA m² Value 22.6% 4 Central Park, Elsiesriver, Cape Town 130 49 135 5 Omni Park, Aeroton, Johannesburg 110 40 527 6 Pine Industrial Park, New Germany 109 39 150 7 Grenville, Epping, Cape Town* 107 17 000 8 226 Brakpan Road, Boksburg 103 42 570 Top 12 Properties 77.4% Balance of Industrial Properties 9 Kulingile Building, Isando, Kempton Park 100 49 000 10 Midas, Meadowdale, Germiston 96 18 981 11 Maitland Industrial Park, Maitland, Cape Town 85 27 961 12 Meadowdale, Germiston 80 15 656 Subtotal 1 617 430 866 218 Balance of the sector 5 544 1 782 908 GLA 19.5% 230 Total for the RSA sector 7 161 2 213 774 80.5% Top 12 Properties Balance of Industrial Properties
ANNEXURE 9 - SIMPLIFIED INCOME STATEMENT (EXTRACTS) RSA 47 Dec 2011 R million Dec 2010 R million Increase Gross property revenue 2 232 1 852 20.5% Retail 724 676 7.1% Office 846 749 13.0% Industrial 461 427 8.0% V&A 201-100.0% Property expenses (561) (464) 20.9% Retail (203) (192) 5.7% Office (191) (177) 7.9% Industrial (102) (95) 7.4% V&A (65) - 100.0% Net property income 1 671 1 388 20.4% Other operating expenses (58) (47) 23.4% Net property income after operating expenses 1 613 1 341 20.3% Finance costs (644) (452) 42.5% Finance income 70 36 94.4% Taxation (excl CGT and deferred tax) 1-100.0% Profit before debenture interest 1 040 925 12.4%
ANNEXURE 10 NET PROPERTY INCOME ANALYSIS RSA (EXCL V&A) 48 Dec 2011 R million Dec 2010 R million Increase Net property income 1 535 1 388 10.6% Adjustments: Acquisitions (109) (31) Disposals (8) (71) Investec rent (112) (98) Adjusted like for like net property income 1 306 1 188 9.9% Retail 441 405 8.9% Office 524 470 11.5% Industrial 341 313 8.9% Total 1 306 1 188 9.9%
ANNEXURE 11 GLA AND VACANCY RECONCILIATION RSA (EXCL V&A) 49 Total GLA (m²) Vacant area (m²) Vacancy Balance at 1 July 2011 4 390 073 220 003 5.0% GLA adjustments (27) 9 844 Disposals (79 652) (15 416) Developments and extensions 22 855 - Leases expired in the period * 495 922 Renewals of expired leases ** (371 269) New letting of vacant space (218 126) Leases terminated 50 517 Balance at 31 December 2011 4 333 249 171 475 4.0% * 11.3% of opening balance GLA expired for the period under review ** Retention % of 74.9% compared to 69.3% for the 6 months to Dec 2010 (Jun 2011: 65.8%)
ANNEXURE 12 LEASE EXPIRY BY SECTOR RSA (% OF GLA) 50 % Vacant 3.6 6.7 2.7 TOTAL 4.0 Monthly 3.0 3.0 2.0 TOTAL 2.7 By Dec-12 13.8 14.3 19.3 TOTAL 15.8 By Dec-13 22.3 20.7 24.0 TOTAL 22.4 By Dec-14 19.1 14.9 19.8 TOTAL 17.9 By Dec-15 12.4 13.9 9.8 TOTAL 12.0 By Dec-16 9.8 8.9 10.3 TOTAL 9.7 2016-beyond 16.0 17.6 12.1 TOTAL 15.5 RETAIL OFFICE INDUSTRIAL TOTAL
ANNEXURE 13 LEASE EXPIRY BY SECTOR RSA (% OF GROSS MONTHLY RENTAL) 51 % Vacant 3.0 5.3 2.7 TOTAL 3.6 Monthly 3.6 2.8 1.5 TOTAL 2.7 By Dec-12 16.9 13.9 21.6 TOTAL17.5 By Dec-13 24.8 20.0 25.1 TOTAL 23.3 By Dec-14 20.2 12.5 19.2 TOTAL 17.3 By Dec-15 12.4 12.1 10.5 TOTAL11.7 By Dec-16 8.6 7.2 9.7 TOTAL 8.5 2016-beyond 10.5 26.2 9.7 TOTAL 15.4 RETAIL OFFICE INDUSTRIAL TOTAL
ANNEXURE 14 UNITHOLDERS HOLDING >1% AT DEC 2011 52 Name Units held Holding Public Investment Corporation 436 698 971 25.7% BEE Consortia 122 000 000 7.2% Stanlib 101 418 536 6.0% Old Mutual Group 79 122 426 4.6% Investec 76 067 310 4.5% Investment Solutions 44 101 052 2.6% Liberty Group 39 444 456 2.3% Vanguard 38 623 304 2.3% Transnet Retirement Funds 29 186 588 1.7% Prudential 28 886 991 1.7% Sanlam Group 21 853 697 1.3% Coronation Fund Managers 21 230 378 1.2% Momentum 20 159 282 1.1% Sentinel Mining Industry Retirement Funds 18 340 332 1.1% Total unitholders holding >1% 1 077 133 323 63.3% Other 624 233 119 36.7% Total 1 701 366 442 100.0% Foreign unitholding 13.7%
ANNEXURE 15 LINKED UNITS ISSUED 53 Linked units Opening balance 1 July 2011 1 591 971 441 Equity raising (July 2011) 100 000 000 Distribution reinvestment (September 2011) 9 395 001 Closing balance 31 December 2011 1 701 366 442
ANNEXURE 16 DETAILED BORROWINGS 54 RSA Refinance date Dec 2011 R million Jun 2011 R million Commercial paper 4 months (R300m x 3) Jan/Feb/Apr 2012 900 ABSA Nov 2012 685 Nedbank Sep 2013 2 000 Standard Bank/Sanlam Dec 2013 1 000 Standard Bank Feb 2014 800 China Construction Bank Aug 2014 250 Corporate Bond 4 years Dec 2014 500 ABSA Paramount Feb 2015 740 RMB Jun 2015 500 Corporate Bond 4.25 years Oct 2015 500 Corporate Bond 5 years Sept 2016 260 Corporate Bond 5 years May 2016 500 RMB Jun 2017 1 000 RMB Feb 2018 675 RMB Paramount Apr 2018 740 OMSFIN May 2021 1 200 Investec Buildings loan Feb 2024 703 Total 12 953 14 249 Weighted average interest rate 9.7% % of debt at fixed interest rate 93.1% GOZ * Westpac, NAB, ANZ (weighted average interest rate of 7.7%) Dec 2013 5 044 Total 5 044 4 855 * Includes a cumulative foreign exchange difference of R1,0 billion (30 Jun 2011: R390,0 million)
ANNEXURE 17 DEBT EXPIRY PROFILE RSA 55 Debt expiry at 31 Dec 2011 per 12 month period 25% 23% 20% 15% 10% 5% 12% 12% 14% 6% 8% 11% 9% 5% 0% 145-156 133-144 121-132 109-120 97-108 85-96 73-84 61-72 49-60 37-48 25-36 13-24 1-12
ANNEXURE 18 INTEREST RATE FIX EXPIRY PROFILE FOR RSA BORROWINGS 56 R m
ANNEXURE 19 SPLIT OF V&A PROPERTY PORTFOLIO 57 Property portfolio by value Property portfolio by GLA 13.2% Retail Office 21.7% 22.9% 12.8% Fishing & Industrial 5.8% 14.8% 53.4% Hotel Bulk 31.9% 23.5% Developed vs undeveloped by value 13.2% Developed Undeveloped 86.8%
ANNEXURE 20 SIMPLIFIED INCOME STATEMENT (EXTRACTS) V&A 58 Dec 2011 V&A R million Gross property revenue 201 Property expenses (65) Net property income 136 Other operating expenses (2) Net property income after operating expenses 134 Finance costs (1) Finance income 8 Taxation (excl CGT and deferred tax) (1) Profit before debenture interest 140 Distribution for the period 140
ANNEXURE 21 LEASE EXPIRY BY SECTOR V&A 59 % of GLA % of gross monthly rental 100 100 100 90 80 85 90 80 81 70 70 60 50 40 30 20 10-6 3 26 21 13 1 43 19 15 11 4 5 1 1 8 2 11 13 10 49 26 27 60 50 40 30 20 10-3 1 25 10 1 23 14 13 14 11 12 13 2 3 1 2 49 22 Retail Office Fishing & Industrial Hotel
ANNEXURE 22 - SPLIT OF GOZ PROPERTY PORTFOLIO 60 Value * Value 0 8% 06% 41% 59% 33% 41% Industrial Office 2% 10% New South Wales Queensland South Australia GLA GLA Tasmania Victoria 14% 0 9% 07% Western Australia 21% 86% 49% 13% 1% * Based on values at 31 December 2011 before completion of developments
61 ANNEXURE 23 - ACQUISITIONS AND DISPOSALS - GOZ Acquisitions Sector R million AUD million Yield 333 Ann Street, Brisbane, QLD Office 909,6 109,9 9.1% CB 1, South Brisbane, QLD Office 532,2 64,3 8.9% CB 2, South Brisbane, QLD Office 268,1 32,4 7.8% 219 247 Pacific Highway * Office 3,3 0,4 8.1% 1 713,2 207,0 8.7% Note: * Only land value of development project acquired Disposals Sector R million AUD million Yield 1304 Ferntree Gully Road, Scoresby, VIC Industrial 42,8 5,2 7.2% 42,8 5,2 Fox Sports, Gore Hill, NSW (artist s impression) 333 Ann St, Brisbane, QLD
62 ANNEXURE 24 TOP 12 GOZ PROPERTIES BY VALUE Building Sector Fair value R million GLA m² Value 1 70 Distribution Street, Larapinta, QLD Industrial 1 278 75 425 2 2 Horrie Miller Drive, Perth Airport, WA Industrial 911 80 374 33.2% 3 333 Ann Street, Brisbane, QLD Office 907 16 476 4 GE 2 572-576 Swan Street, Richmond, VIC Office 606 14 660 66.8% 5 28 Bilston Drive, Wondonga, VIC Industrial 573 57 440 6 134 Lillkar Road, Goulburn, NSW Industrial 569 42 826 7 CB1, 100 Melbourne Street, South Brisbane, QLD Office 530 11 561 8 52 Merivale Street, South Brisbane, QLD Office 528 9 453 9 32 Cordelia Street (car park), South Brisbane, QLD Office 521 10 052 Top 12 Properties Balance of GOZ Properties GLA 10 120 Northcorp Boulevard, Broadmeadows, VIC Industrial 519 58 320 11 599 Main North Road, Gepps Cross, SA Industrial 462 67 238 12 33-39 Richmond Road, Keswick, SA Office 433 11 835 Subtotal 7 837 455 660 28 Balance of the sector 3 890 429 545 48.5% 51.5% 40 Total for the GOZ sector 11 727 885 205 Top 12 Properties Balance of GOZ Properties
ANNEXURE 25 - SIMPLIFIED INCOME STATEMENT (EXTRACTS) GOZ Dec 2011 GOZ R million 63 Dec 2010 GOZ R million Increase Gross property revenue 449 274 63.9% Property expenses (48) (24) 100.0% Net property income 401 250 60.4% Other operating expenses (19) (14) 35.7% Net property income after operating expenses 382 236 61.9% Finance costs (189) (132) 43.2% Finance income 4 3 33.3% Adjustment for non-controlling interest and taxation (excl CGT and deferred tax) (84) (28) 200.0% Profit before debenture interest 113 79 43.0% Distribution for the period 113 79 43.0% Note: Average exchange rate R7.84/AUD (Dec 2010: R6.72/AUD) The number of properties in Australia has grown from 33 in December 2010 to 40 in December 2011
64 ANNEXURE 26 NET PROPERTY INCOME ANALYSIS GOZ Dec 2011 GOZ AUD 000 Dec 2010 GOZ AUD 000 Increase Net property income (excl straight line lease income) 50 085 36 854 35.9% Adjustments: Acquisitions (17 543) (4 084) Disposals (266) (1 333) Developments (adding additional GLA) - - Adjusted like for like net property income 32 276 31 437 2.7% Office - - - Industrial 32 276 31 347 2.7% Total 32 276 31 437 2.7% 28 Bilston Drive, Wodonga, VIC
ANNEXURE 27 - GLA AND VACANCY RECONCILIATION GOZ 65 Total GLA (m²) Vacant (m²) Vacancy Balance at 1 July 2011 843 964-0.0% GLA adjustments: Disposals (7 621) Acquisitions, developments and extensions 48 862 29 Balance at 31 December 2011 885 205 29 0.0% 22 Cordelia St, South Brisbane, QLD
ANNEXURE 28 LEASE EXPIRY BY SECTOR GOZ 66 % of GLA % of gross monthly rental 100 90 87 100 90 91 80 80 70 60 65 70 60 59 50 50 40 40 30 30 20 10-2 1 7 7 4 1 11 5 8 2 20 10-2 9 6 1 2 1 15 4 9 1 Office Industrial