1 Redefine Group results for the six months ended 29 February 2020
Our conversation We apply an integrated management approach to focus on what matters most Strategic matters Grow Invest Optimise Operate Engage Reputation Strategically Capital Efficiently Talent Creating sustained Securing capital in a Operating in a low Harnessing our people’s skills, Living our purpose value for all our constrained and costly growth, rising stakeholders abilities and attitudes environment administered cost context Strategic objectives 2 Redefine Group results for the six months ended 29 February 2020
Growing reputation Section 01 Growing reputation Our purpose drives us to add value to the lives of our stakeholders 3 3 Redefine Group results for the six months ended 29 February 2020
Key outcomes for the first half of 2020 The role of ESG has been elevated in every aspect of what we do Green Star certification of 26 Developed Green Tenant Guidelines Increased solar PV capacity to buildings in progress, which will and Supplier Code of Conduct to Environment 25.1 MWp (26 plants) take the total Green Star enforce environmental best practice certifications to 100 Total mentees matched to mentors Received a global CDP Supplier Maintained Level 3 BBBEE now 1 514 on The Mentorship Social Engagement A rating contributor status Challenge platform Filling the financial director role Awarded AAA ethics rating from All board committees comprise an opportunity to address Ethics Monitor independent non-executive Governance Growing reputation diversity directors After-hours water consumption at Golden Walk prior to the smart valve installation After-hours water consumption at Golden Walk after the smart valve installation m³ m³ 14 30 12 25 10 20 8 15 6 10 4 5 2 0 0 7 Oct 8 Oct 9 Oct 10 Oct 11 Oct 12 Oct 13 Oct 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec Golden Walk – total flow 4 Redefine Group results for the six months ended 29 February 2020
Our response to COVID-19 Embedding sustainable relationships leading up to and during the lockdown Stakeholder emphasis to position Redefine for business continuity Collaborating with investors and funders is underway to ensure that Redefine is provided the space to take the requisite actions to weather the challenging financial conditions that will arise during and post the lockdown Reinforcing our purpose and values, so that employees have clarity and are empowered to make commercially defendable decisions on their own and quickly, while remaining accountable for their actions is a priority during the lockdown Growing reputation Offering unique value to affected tenants through relief and assistance packages to support their liquidity needs during the lockdown Supporting and working closely with our suppliers, brokers and service providers to ensure their businesses survive this period and position us to receive improved levels of service Using this crisis as an opportunity to deepen our community purpose by ensuring that we remain focused to create and manage our spaces in ways that play supportive roles to those more vulnerable than us 5 Redefine Group results for the six months ended 29 February 2020
Looking ahead as the new normal unfolds Achieving stakeholder goals to create sustained value Second half 2020 focus Our stakeholder goals Deepen communication and collaboration A source of sustained growth in total returns for investors and funders Remain relevant to stakeholders An employer of choice for employees Heighten focus on ESG A differentiated provider of relevant space to tenants Growing reputation A preferred business partner for brokers and suppliers Anticipated outcome Build brand loyalty A responsible community participant Improve stakeholder perceptions ESG considerations in all aspects of what we do 6 Redefine Group results for the six months ended 29 February 2020
Investing strategically Investing strategically Section 02 Positioning the core portfolio to remain relevant to users’ needs 7 7 Redefine Group results for the six months ended 29 February 2020
Key outcomes for the first half of 2020 Advancing our strategy to diversify, grow and improve the quality of the property asset platform Capital deployed of R2.7 billion Property assets under Deployed R1.9 billion Development activities & capex management now at into property assets 1 843 R89.2 billion Working capital 776 Offshore expansion totalled Local development activity R1.0 billion, with R0.6 billion totalled R0.8 billion ELI acquisitions 54 Investing strategically invested in Poland 80% of property asset Progress made on 23 Capital allocated to developments and capex 24 base is local simplifying and right- 179 European Logistics platform 628 sizing asset portfolio Australian student accommodation 193 Office Retail Rm Industrial Local student accommodation Residential 387 409 8 Redefine Group results for the six months ended 29 February 2020
Local portfolio profile A well-located, high-value, high-quality and efficient portfolio Impact of portfolio restructure Carrying value Retail 40% of local R # portfolio value R71.3 billion 327 25 000 315 350 312 302 300 300 20 000 (FY19 | R72.8bn) (FY19 | 40%) 15 854 250 15 608 14 382 15 000 12 870 200 11 096 73% located in Office 36% of local 150 10 000 portfolio value Gauteng 100 Investing strategically 5 000 50 (FY19 | 73%) (FY19 | 36%) 0 0 FY16 FY17 FY18 FY19 HY20 17% located in Industrial 20% of local Average value per m² (R) Number of properties (#) Western Cape portfolio value (FY19 | 18%) (FY19 | 19%) 9 Redefine Group results for the six months ended 29 February 2020
Local portfolio headlines A focus on organic growth Exit cap rate per sector Average value Active portfolio revaluation Student accommodation 10.6% per property of of -0.7% R232 million Specialised 9.6% (FY19 | R236m) Industrial 9.3% Office 8.6% Completed developments Continued focus to right- totaling R94.7 million size retailers footprint to Retail 8.5% Investing strategically improve trading performance 0% 2% 4% 6% 8% 10% 12% Lease expiry profile by GLA (m²) Disposals totalling Quality tenants and tenant 2 000 R707 million retention the key driver of 36% 1 600 Thousands office performance 1 200 16% 800 14% 11% Total letting Industrial developments 8% 7% 400 4% 4% at 455 553m² tenant driven with emphasis 0 on efficiency through design Monthly 2020 2021 2022 2023 2024 Beyond Vacancy (HY19 | 456 717m²) 2024 10 Redefine Group results for the six months ended 29 February 2020
Local retail portfolio overview Differentiating by creating outstanding places for modern consumer lifestyles Value by type (%) Active 6% Value GLA vacancy 6% R28.1 billion 1.4 million m² 5.6% 37% (FY19 | R28.8bn) (FY19 | 1.4 million m²) (FY19 | 4.6%) 16% Trading Sales Footfall density growth growth growth 3.6% # 4.3% # -0.3%* Investing strategically 35% (FY19 | 3.0%) (FY19 | 4.2%) (FY19 | -1.8%) Rent Tenant retention Renewal rent to turnover by GLA reversion Community / Small regional 8.0%* 95.8% -2.5% Regional Super regional (FY19 | 8.0%) (FY19 | 94.1%) (FY19 | -1.8%) Other Renewal success Neighbourhood Edcon (excl. CNA) Completed rate by GLA exposure reduced refurbishments by 12 286m² to 52.4%** of R47.5 million 55 583m² * Figures are based on top 19 shopping centres ** Excludes monthly leases # Excluding properties under development and new GLA 11 Redefine Group results for the six months ended 29 February 2020
Local office portfolio overview Efficient, modern facilities to enable work-life integration Value by grade (%) 15% Value GLA Active vacancy R25.1 billion 1.2 million m² 12.3% 51% (FY19 | R25.4bn) (FY19 | 1.2 million m²) (FY19 | 10.2%) Tenant retention Renewal Renewal success by GLA reversion rate by GLA 34% 93.3% -1.5% 57.0%* Investing strategically (FY19 | 56.7%) (FY19 | 91.4%) (FY19 | -2.0%) Solar PV Installation Rosebank Link Premium roll-out of of WeWork achieved a 4 A grade Green Star 2 500 kWp at 155 West ‘design’ and a 5 Secondary Street ‘as built’ rating Completed Good exposure refurbishments Disposals to premium of R208.0 million R92.4 million node Rosebank * Excludes monthly leases 12 Redefine Group results for the six months ended 29 February 2020
Local industrial portfolio overview Incorporating key design elements to functionally differentiate our offering BY VALUE (%) 1% 7% Active 8% Value GLA vacancy 46% R13.7 billion 1.8 million m² 2.1% 8% (FY19 | R13.8bn) (FY19 | 1.8 million m²) (FY19 | 1.8%) 11% Land disposals Tenant retention Renewal of R104.2 million by GLA rental growth 97.1% 9.4% Investing strategically 20% (FY19 | 93.8%) (FY19 | -3.6%) Developments Renewal success Warehousing / Logistics Infrastructure rate by GLA in progress Heavy grade industrial projects 72.5%* R241.4 million Vacant land in progress Light manufacturing R468.5 million (FY19 | 65.7%) Industrial units Hi-tech industrial Retail warehouse * Excludes monthly leases 13 Redefine Group results for the six months ended 29 February 2020
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