1 Redefine Group results for the six months ended 29 February 2020 - - PowerPoint PPT Presentation

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Redefine Group results for the six months ended 29 February 2020

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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

Grow Reputation Invest Strategically Optimise Capital Operate Efficiently Engage Talent

Creating sustained value for all our stakeholders Securing capital in a constrained and costly environment Operating in a low growth, rising administered cost context Harnessing our people’s skills, abilities and attitudes Living our purpose

Strategic matters Strategic objectives

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Redefine Group results for the six months ended 29 February 2020

Growing reputation

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Growing reputation

01

Our purpose drives us to add value to the lives of our stakeholders

Section

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Redefine Group results for the six months ended 29 February 2020

Growing reputation

Environment Increased solar PV capacity to 25.1 MWp (26 plants) Green Star certification of 26 buildings in progress, which will take the total Green Star certifications to 100 Developed Green Tenant Guidelines and Supplier Code of Conduct to enforce environmental best practice Social Received a global CDP Supplier Engagement A rating Total mentees matched to mentors now 1 514 on The Mentorship Challenge platform Maintained Level 3 BBBEE contributor status Governance Filling the financial director role an opportunity to address diversity Awarded AAA ethics rating from Ethics Monitor All board committees comprise independent non-executive directors

Key outcomes for the first half of 2020

The role of ESG has been elevated in every aspect of what we do

5 10 15 20 25 30 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec

After-hours water consumption at Golden Walk after the smart valve installation

2 4 6 8 10 12 14 7 Oct 8 Oct 9 Oct 10 Oct 11 Oct 12 Oct 13 Oct

After-hours water consumption at Golden Walk prior to the smart valve installation m³ m³

Golden Walk – total flow

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Redefine Group results for the six months ended 29 February 2020

Growing reputation

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 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

• ur spaces in ways that play supportive roles to those more vulnerable than us

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Redefine Group results for the six months ended 29 February 2020

Growing reputation

Looking ahead as the new normal unfolds

Achieving stakeholder goals to create sustained value

A source of sustained growth in total returns for investors and funders An employer of choice for employees A differentiated provider of relevant space to tenants A preferred business partner for brokers and suppliers A responsible community participant

Second half 2020 focus Deepen communication and collaboration Remain relevant to stakeholders Heighten focus on ESG Anticipated outcome Build brand loyalty Improve stakeholder perceptions ESG considerations in all aspects of what we do Our stakeholder goals

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

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Investing strategically

02 Section

Positioning the core portfolio to remain relevant to users’ needs

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

54 776 1 843 ELI acquisitions Working capital Development activities & capex

Key outcomes for the first half of 2020

Advancing our strategy to diversify, grow and improve the quality of the property asset platform

Property assets under management now at R89.2 billion Offshore expansion totalled R1.0 billion, with R0.6 billion invested in Poland Deployed R1.9 billion into property assets Local development activity totalled R0.8 billion

Capital deployed of R2.7 billion

628 409 387 193 179 24 23 Capital allocated to developments and capex European Logistics platform Retail Australian student accommodation Office Local student accommodation Industrial Residential Rm

80% of property asset base is local Progress made on simplifying and right- sizing asset portfolio

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

Local portfolio profile

A well-located, high-value, high-quality and efficient portfolio

(FY19 | R72.8bn) (FY19 | 73%) (FY19 | 18%) (FY19 | 40%) (FY19 | 36%) (FY19 | 19%)

Carrying value R71.3 billion 73% located in Gauteng 17% located in Western Cape Retail 40% of local portfolio value Office 36% of local portfolio value Industrial 20% of local portfolio value

11 096 12 870 14 382 15 854 15 608 312 327 315 302 300 50 100 150 200 250 300 350 5 000 10 000 15 000 20 000 25 000 FY16 FY17 FY18 FY19 HY20

Impact of portfolio restructure

Average value per m² (R) Number of properties (#) R #

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

Local portfolio headlines

A focus on organic growth

(HY19 | 456 717m²) (FY19 | R236m)

Active portfolio revaluation

• f -0.7%

Completed developments totaling R94.7 million Disposals totalling R707 million Total letting at 455 553m² Average value per property of R232 million Continued focus to right- size retailers footprint to improve trading performance Quality tenants and tenant retention the key driver of

• ffice performance

Industrial developments tenant driven with emphasis

• n efficiency through design

8.5% 8.6% 9.3% 9.6% 10.6%

0% 2% 4% 6% 8% 10% 12%

Retail Office Industrial Specialised Student accommodation Exit cap rate per sector

4% 4% 14% 16% 11% 8% 36% 7% 400 800 1 200 1 600 2 000

Monthly 2020 2021 2022 2023 2024 Beyond 2024 Vacancy

Lease expiry profile by GLA (m²)

Thousands

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

* Figures are based on top 19 shopping centres ** Excludes monthly leases # Excluding properties under development and new GLA

Local retail portfolio overview

Differentiating by creating outstanding places for modern consumer lifestyles

37% 35% 16% 6% 6%

Value by type (%)

R28.1 billion Value

(FY19 | R28.8bn)

3.6%# Trading density growth

(FY19 | 3.0%)

8.0%* Rent to turnover

(FY19 | 8.0%)

Completed refurbishments

• f R47.5 million

1.4 million m² GLA

(FY19 | 1.4 million m²)

4.3%# Sales growth

(FY19 | 4.2%)

95.8% Tenant retention by GLA

(FY19 | 94.1%)

Edcon (excl. CNA) exposure reduced by 12 286m² to 55 583m² 5.6% Active vacancy

(FY19 | 4.6%)

• 0.3%*

Footfall growth

(FY19 | -1.8%)

• 2.5%

Renewal rent reversion

(FY19 | -1.8%)

52.4%** Renewal success rate by GLA

Community / Small regional Regional Super regional Neighbourhood Other

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

* Excludes monthly leases

Local office portfolio overview

Efficient, modern facilities to enable work-life integration

51% 34% 15%

Value by grade (%)

R25.1 billion Value

(FY19 | R25.4bn)

93.3% Tenant retention by GLA

(FY19 | 91.4%)

Completed refurbishments

• f R208.0 million

1.2 million m² GLA

(FY19 | 1.2 million m²)

• 1.5%

(FY19 | -2.0%)

2 500 kWp Solar PV roll-out of 12.3% Active vacancy

(FY19 | 10.2%)

57.0%* Renewal success rate by GLA at 155 West Street R92.4 million Disposals Renewal reversion Installation

• f WeWork

Rosebank Link achieved a 4 Green Star ‘design’ and a 5 ‘as built’ rating

Premium A grade Secondary

(FY19 | 56.7%)

Good exposure to premium node Rosebank

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

* Excludes monthly leases

Local industrial portfolio overview

Incorporating key design elements to functionally differentiate our offering

R13.7 billion Value

(FY19 | R13.8bn)

72.5%* 1.8 million m² GLA

(FY19 | 1.8 million m²)

2.1% Active vacancy

(FY19 | 1.8%)

Renewal success rate by GLA Land disposals

• f R104.2 million

97.1% Tenant retention by GLA

(FY19 | 93.8%)

9.4%

(FY19 | -3.6%)

Renewal rental growth R241.4 million Developments in progress Infrastructure projects in progress R468.5 million

(FY19 | 65.7%)

Hi-tech industrial Industrial units Warehousing / Logistics Light manufacturing Heavy grade industrial Vacant land Retail warehouse 46% 20% 11% 8% 8% 7% 1% BY VALUE (%)

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

Local student accommodation Loans High yielding

Redefine’s interests

→ Current bed capacity at 8 377 → Loans of R2.1 billion to various

third parties attracting commercial interest rates

→ Solar PV plants → LED screens, exterior media, kiosks

and wi-fi

→ Park Central residential development → Oando Wings

Platform profile

→ Lockdown resulted in shutdown of

universities and residences largely vacated

→ All new development projects placed on

hold to preserve liquidity and due to risk of not completing it on time for 2021 academic intake due to disruption by COVID-19

→ Loan to BEE consortium for Delta shares

disposal reflected in the books at market value of the Delta shares

→ 26 solar PV plants generate 25.1 MWp → Non-GLA income growing by 7.5% → Park Central comprising 159 units – 36.1%

and 25.7 % by value sold and let out respectively

Priorities

→ Initial disposal transaction fell through,

however demand for specialist assets still presents recycling opportunity

→ Provide loan funding to secure strategic

partners and provide transformed

• pportunities

→ Downside risk on Delta to be mitigated → Pipeline of solar PV projects to add another

794 kWp

→ Leverage non-GLA opportunities off

property base

→ Sell / rent Park Central units → Sale of Oando Wings to Growthpoint

Investec African Properties

Alternative investments

Diversifying income streams

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

*Including Redefine’s foreign borrowings **Including local assets and borrowings net of cash

International portfolio profile

Geographic diversification in hard currency markets

(FY19 | R22.6bn) (FY19 | R37.3bn) (FY19 | R33.1bn) (FY19 | R12.6bn) (FY19 | R10.0bn) (FY19 | 51.7%)

Carrying value R17.9 billion Proportional share of assets R34.8 billion Proportional share of debt* R32.4 billion Listed securities R12.0 billion Direct properties R5.9 billion Redefine see through LTV** 52.4%

60% 22% 16% 2%

Geographic spread by value (%)

Poland Australia United Kingdom Africa

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

International portfolio headlines

Seeking active asset management opportunities to unlock and sustain value

Disposal of Strykow EUR49.2 million at a yield of 6.1% EPP NAV per share EUR1.32 EPP carrying value impaired by R442.4 million Introduced joint venture partner into ELI Leicester Street (Australian student accomm.) average occupancy at Feb 83% RDI carrying value impaired by R121.5 million

55% 18% 14% 9% 4% Value by type (%)

Retail Hotel Office Student accommodation Industrial

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

European Logistics platform overview

Economic growth, e-commerce expansion and infrastructure improvement drives demand

EUR270.3 million Value of income producing assets 392 384m²

(FY19 | 444 114m²)

EUR13.6 million GLA added through developments 25 510m² 9.9% Income producing GLA Active vacancy New developments in progress of EUR62.3 million Weighted average unexpired lease term 4.1 years Completed new developments of Madison introduced as a joint venture partner EUR3.3 million Disposal

• f Stykow

Renewal success rate by GLA 0.0% EUR49,2 million at yield of 6.1% 36.5%

(FY19 | 13.6%) (FY19 | -3.8%)

Renewal reversion

(FY19 | 4.5 years)

Acquisition of 15.9ha of land with 72 310m² developable bulk

(FY19 | R295.0 million) (FY19 | 130 633m²) (FY19 | 16.0%)

29% 26% 16% 12% 10% 4% 2% 1%

GLA by tenant type (%)

Retailer Distribution Production 3PL Delivery Vacancy Packaging Supplier

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

Protecting our net asset value

Focus on restoring value of under-performing assets

RDI REIT PLC Delta Oando Wings Redefine’s investment has declined R2.2 billion in carrying value since August 2016 Changing retail behaviour, Brexit and balance sheet risk contributed to the loss in value Redefine continues to work closely with RDI to evaluate all options which may require Redefine to remain invested in the medium term without committing further equity A number of opportunistic approaches to acquire the RDI shares referenced off current market prices have been received and declined The loan to Cornwall Crescent (BEE consortium) is reflected at Delta’s share price as Redefine’s sole recourse is to the shares The loan has been written down by R1.4 billion since inception (June 2017) – from R9 to under 50 cents per share Redefine is working closely with Cornwall Crescent to restore some of the lost value which, due to COVID-19 has been placed on hold Growthpoint Investec African Properties (GIAP) has concluded a portfolio transaction with our partners RMB Westport The sale of our share in Oando for shares in GIAP has been concluded and is subject to regulatory clearance by the Nigerian authorities

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

Capital allocation priorities 2020

Allocating capital to position platform for sustained value creation Improving: R170 million Expanding: R1.0 billion

Revenue enhancing operational capital expenditure Solar PV / Smart metering Local retail development activity European Logistics platform developments Australian student accommodation expansion Local retail developments Local industrial developments Local student accommodation developments

Defending: R129 million Protecting: R78 million

Local operational capital expenditure Local retail capital expenditure Local office capital expenditure Capital enhancing operational capital expenditure

Income growth potential Low High Long-term value creation potential Limited Significant

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

Our response to COVID-19

Systemic changes in behaviour will shape how we will live, work and play

Retail

→Tenant mix and store offerings will be influenced by a change in consumer behaviour →Consumers may permanently change their preferred buying channel for certain categories toward e-commerce → Current preference of neighbourhood / convenience centres becoming the norm

Office

→ Trend toward densification and open-plan layouts may reverse → Public-health officials may increasingly amend building regulations to limit the risk of future pandemics → Offices expected to maintain its appeal for facilitating interaction, collaboration and productivity

Industrial

→ Supply chain risk mitigation and increased levels of inventory further boost already high demands for industrial (logistics /

warehousing) We are now shifting our thinking ahead to when the crisis is over to:

→ Provide a better, and more distinctive, tenant and customer experience → Importantly ensure our offering keeps pace with the evolving dynamics of space usage

At this stage, it is not possible to assess the full impact of COVID-19 on the future carrying value of property assets

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Redefine Group results for the six months ended 29 February 2020

Investing strategically

Looking ahead as the new normal unfolds

Simplified, focused and significant in each sector / geography

Second half 2020 focus Renewed focus on space offering Offshore expansion through development activity Protect value of property assets Anticipated outcome Improve relevance of local portfolio Expand offshore logistics platform Minimise TNAV downside risks Indicative asset platform 3+ years

Property portfolio Retail Office Industrial Direct local property portfolio Direct Polish properties International listed securities EPP N.V. European Logistics platform

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Redefine Group results for the six months ended 29 February 2020

Optimising capital

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Optimising capital

03 Section

Dusting off playbooks from earlier crises is a waste of time

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Redefine Group results for the six months ended 29 February 2020

Optimising capital

Key outcomes for the first half of 2020

Strengthening the balance sheet continues to be our most important strategic priority

48 1 014 1 609 500 1 000 1 500 2 000

Vendor loans repaid Recycling of capital Debt raised Sources of capital of R2.7 billion

(FY19 | R5.8%) (FY19: 43.9%) (FY19: 4.3x) (FY19: 87.3%)

Average cost of debt increased by 30bps to 6.1% LTV increased to 44.2% Interest cover ratio at 3.7x Interest rate hedged

• n 88.7% of total debt

Healthy liquidity levels, and all near term debt maturities substantially refinanced

Funded deployment of capital of R1.9 billion and working capital of R0.8 billion

Moody’s investment grade credit rating downgraded to Ba1 in line with Sovereign

Rm

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Redefine Group results for the six months ended 29 February 2020

Optimising capital

Analysis of secured and unsecured debt to property assets

Financial market conditions demand prudent balance sheet management and careful liquidity planning

* Cross currency swaps do not require cash margining ** Local debt net of cash (including cash flow received from sale of ELI on 11 March 2020)

# Includes offshore assets of R0.3bn securing local debt ## Includes local assets of R5.6bn securing offshore debt

Assets Rbn Debt Rbn LTV Secured 58.1 26.9 46.3% Local 47.0# 21.5 45.7% Offshore 11.1## 5.4 48.6% Unsecured 31.1 11.3 36.3% Local** 19.0 9.6 Offshore 12.1 1.7 Group loan-to-value before inclusion of cross currency swaps 89.2 38.2 42.8% Mark-to-market unsecured cross currency swaps* 1.2 Local deposit (8.7) Foreign debt 9.9 Group loan-to-value 89.2 39.4 44.2%

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Redefine Group results for the six months ended 29 February 2020

Optimising capital

Update on lowering the LTV

Proven track record in recycling assets despite challenging conditions

Improving the LTV is being addressed through a combination of

→ Local non-core property disposals in progress totalling R2.9 billion → Selling Australian assets to realise R4.3 billion → Receipt of earn-out fee totalling R0.6 billion from European Logistics platform developments in progress → Limiting speculative capital expenditure → Moratorium on acquisitions → A distribution reinvestment programme considered to be inappropriate given the share price → Implementation of dividend pay-out policy → Restoring value of under-performing assets → Deferment of decision on 2020 dividend to November

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Redefine Group results for the six months ended 29 February 2020

Optimising capital

Our response to COVID-19

Adopted a “manage for liquidity and sustainability and not for profit” attitude

→ 73% of April billings collected – May collections will be heavily impacted by lockdown and rental relief packages → Liquidity headroom sufficient to absorb ±50% rental decline and 100% dividend withholding from foreign investments up to Aug 2020 → Banks' attitude is supportive and pragmatic with regards to access to liquidity and covenant compliance → R7.7 billion of DCM listed notes outstanding, only R834 million matures in next 12 months → All listed offshore entities are sufficiently capitalised to meet liquidity needs → Engaging with regulatory bodies on REIT listing requirements and tax implications

Risks during COVID-19 LTV impact ICR impact Rental relief during lockdown period, and rental deferments X Property devaluation X Delayed transfer on sale of non-core properties or sale cancellations X Possible restrictions on development activity X X Foreign investments withhold dividends to maintain liquidity X Further impairment of foreign investments X Continued ZAR depreciation X Further credit rating downgrade resulting in higher debt costs X Strictest covenants LTV = 50% and ICR = 2x LTV sensitivity analysis LTV impact Rand at 19 April spot FX rates +2.4% Rand at 19 April spot FX rates and then depreciates by 5% +0.5% SA property values decrease by 10% (-R7.1bn) +3.6% EPP written down to listed price (R6.75 per share) +3.1% RDI written down to listed (GBP0.6 per share) +0.8% ICR sensitivity analysis 29 Feb 2020 Stressed* at 31 Aug 2020 ICR 3.7 2.5 *Stressed forecasted ICR assumes:

• no foreign cash dividend income from associates, and
• decrease in SA and ELI rental income by 25% for next six months

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Redefine Group results for the six months ended 29 February 2020

Optimising capital

5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Dec 18 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 Redefine forward yield R186 yield 5 year swap rate

Looking ahead as the new normal unfolds

Pre-empting the race to liquidity

Drivers of the cost of capital

Second half 2020 focus Right-size asset footprint to capital base Bolster liquidity Apply dividend pay-out policy Anticipated outcome Maintain and improve credit metrics Meet funding commitments and cover short term liquidity needs Lower LTV ratio

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Redefine Group results for the six months ended 29 February 2020

Operating efficiently

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Operating efficiently

04 Section

Managing the variables under our control

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Redefine Group results for the six months ended 29 February 2020

Operating efficiently

Key outcomes for the first half of 2020

A solid local first half performance in a challenging environment

(HY19: 11.7%)

Active portfolio margin at 83.0% Active portfolio occupancy at 94.0% Group revenue growth

• f 9.6%

New lets 191 840m² and renewed 263 713m² at an average increase of 2.2% Tenant retention rate at 95.7% Non-recurring income almost phased out

2 420 2 534 1 801 116 124 16 2 536 2 658 1 817 1 000 2 000 3 000 4 000

HY18 HY19 HY20

Rm

Distributable income analysis

Recurring income Non-recurring income

(HY19: 83.4%) (FY19: 94.9%) (FY19: 93.3%)

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Redefine Group results for the six months ended 29 February 2020

Operating efficiently

Financial headlines for the first half of 2020

Financial year 2020 will be a tale of two halves

(HY19: 49.19 cents) (HY19: 16.8%) (FY19: R45.5 billion)

Half year distributable income per share 33.46 cents Net operating cost to income ratio 17.4% Market capitalisation at R13.2 billion Deferment of half year dividend payout Local debt cost increase due to debt reorganisation TNAV declined by 59.6 cents per share to 884.3 cents per share Only dividend income received has been recognised Bulk of distributable income decline due to negative international contribution

39.0 41.7 44.8 47.3 49.2 33.5 41.0 44.3 47.2 49.8 51.8 80.0 86.0 92.0 97.1 101.0 33.5 20 40 60 80 100 120

FY15 FY16 FY17 FY18 FY19 HY20

CPS

Distributable income per share Interim Final

912 943 913 977 944 884 1 034 1 056 1 023 1 083 1 048 884

1 148 1 102 1066 1 035 785 543 400 600 800 1 000 1 200 1 400

FY15 FY16 FY17 FY18 FY19 HY20

CPS

Net asset value per share growth NTAV NAV Share price

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Redefine Group results for the six months ended 29 February 2020

Operating efficiently

Contributors to growth in distributable income

Operating in an environment where the knowns are outweighed by evolving unknowns

Rm

Tailwinds R228 million Headwinds (R1 069 million)

HY 2019 distributable income Local active portfolio NOI growth HY 2020 distributable income Lower admin costs Local developed properties NOI growth Australian student accomm. Higher net SA finance charges Lower income on Cornwall Oando Wings income not accrued NOI of local disposed properties Increase in EUR funding cost EPP dividend not accrued Increase in AUD funding cost Lower sundry income Chariot income not accrued RDI dividend not accrued

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Redefine Group results for the six months ended 29 February 2020

Operating efficiently

Decline in net asset value per share (cents)

Our diversified asset platform is capable of absorbing shocks and providing a platform for sustained growth

GBP 4.7 EUR 1.2 USD 0.3 AUD (0.2) Journal (1.0) Cromwell (1.1) Other (1.3) RDI (1.8) 31 Aug 2019 NAV Other Statutory profit excl revaluation, impairments, amortisation, EAP and forex Distributions paid Write down

• f goodwill

and intangible assets 29 Feb 2020 NAV NAV decrease of international assets FV

• f hedges

Forex gain

• n international

investments Forex loss on foreign denominated loans Impairment

• f

international assets Revaluation

• f SA

property portfolio AUD 0.2 USD (0.1) EUR (1.2) GBP (6.1) Oando (0.8) RDI (2.3) EPP (3.8) Intangibles (5.8) Goodwill (97.7) EUR 1.4 ZAR (0.9)

*TNAV – Tangible net asset value

TNAV* 943.9 TNAV

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Redefine Group results for the six months ended 29 February 2020

Operating efficiently

Our response to COVID-19

Supporting the recovery and sustainability of our stakeholders is top of mind

→ A significant amount of work is going into agreeing rental relief packages with emphasis on supporting SMMEs → Rental relief is structured according to categories – but handled on a case-by-case basis → Negotiations, through the Property Industry Group, are ongoing with large and medium retailers → No dividend income from offshore entities, with the exception of European Logistics platform, is anticipated in 2020 → Proactive utility management and unlocking procurement and discretionary expenditure efficiencies → All non-essential costs have been frozen or deferred to support liquidity and absorb extra costs → Continued support for all our suppliers and third-party representatives

4% 8% 9% 13% 33% 33% 0% 20% 40% Pharmacy and personal care Restaurant and food Financial services Grocery Stores / Supermarkets Other Apparel Retail (GMR %) 6% 13% 15% 31% 35% 0% 20% 40% Warehousing Midi units and other Light manufacturing Modern logistics Heavy Grade Industrial Industrial (GMR %) 4% 7% 9% 11% 13% 20% 36% 0% 20% 40% Retail Construction, mining & property IT & Tech Legal Government Other Financial services Office (GMR %)

Tenant categorisation by sector

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Redefine Group results for the six months ended 29 February 2020

Operating efficiently

Looking ahead as the new normal unfolds

Letting will be reshaped by low levels of confidence and tight economy

Second half 2020 focus Support tenants through rental relief Proactive utilities management and re-prioritise discretionary expenditure Unlock procurement and operational expenditure efficiencies Anticipated outcome Secure sustainability of tenants Mitigate impact of lower revenue Eliminate non-recurring income

35

Redefine Group results for the six months ended 29 February 2020

Engaging talent

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Engaging talent

05 Section

Our values are the glue that holds our people together

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Redefine Group results for the six months ended 29 February 2020

Engaging talent

Key outcomes for the first half of 2020

The right people in the right place at the right time

Remuneration policy approved with

• verwhelming support

50 learners on the 2020 programme 8 682 hours of training and development Certified as a Top Employer for 5th consecutive year Transformation across all levels in progress Employee engagement score of 87% - above global and local benchmark

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Redefine Group results for the six months ended 29 February 2020

Engaging talent

Our response to COVID-19

Remaining engaged, motivated and connected through a refreshed people plan

→ A dedicated COVID-19 task team established to implement a coordinated response across the business to ensure

health, safety and wellbeing of all our stakeholders

→ Activated business continuity plans to minimise disruption by initiatives implemented to curb the spread of the virus → Our people have all responded positively to the work-from-home challenge → A staff communication plan was launched using our values as the driver and emphasising our purpose → The focus has now shifted to planning for the eventual return to normalcy

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Redefine Group results for the six months ended 29 February 2020

Engaging talent

Looking ahead as the new normal unfolds

Our people are our strategic differentiator Second half 2020 focus Anticipated outcome Instil a culture of innovation and learning Accelerate transformation Refresh organisational structure Keep staff engaged and motivated Improve transformation across all levels Position management for the new normal

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Redefine Group results for the six months ended 29 February 2020

Engaging talent

Outlook

A fluid game plan to make decisions and adapt to new rules that emerge

Using the COVID-19 crisis as an opportunity

C

Connect: Heighten communication and collaboration with all stakeholders

O

Others: Reassess what sustained value means to others – all our stakeholders

V

Values: Live our values no matter what the situation

I

Innovation: Leverage our purpose as a tool to stimulate innovation

D

Disruption: Focus on what matters most to deliver on our strategic priorities

Operating in an environment where the knowns are

• utweighed by evolving unknowns, we are not in a position

to provide the market with distributable income guidance

Distributable income retained to bolster liquidity

1 817 1 504 426 175 13 Distributable income retained Providers of debt Government and regulatory bodies Employees Minority interest holders

Rm

40

Redefine Group results for the six months ended 29 February 2020

Supplementary information

40

Supplementary information

06 Section

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Redefine Group results for the six months ended 29 February 2020

Supplementary information

Top risks

Uncertainty pertaining to long-term impact of geo-political and socio-economic growth factors Impact of disruptive technologies Inability to sustain business operations and services following a disaster or adverse event Deteriorating public / state infrastructure and poor administrative delivery locally Financial market volatility Inability to effectively manage our reputation Failure to comply with local and international laws and regulations Inability to be environmentally resilient Damage to property and security-related threats Inability to prevent computer fraud and respond to cybersecurity attacks Long-term impact of failing to transform at an acceptable rate Increased competition for tenants Inability to maintain strong ethical and governance culture Misalignment with international partners (in country)

Elevated top risk Unchanged top risk Reduced exposure

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Redefine Group results for the six months ended 29 February 2020

Supplementary information

Snapshot of our value creation scorecard by key stakeholder

A source of sustained growth in total returns for investors and funders

Outcomes : On track Requires focus Work in progress Introduced in 2020 Not available Value creation indicator Distributable income per share down Reduction of non-recurring distributable income Deterioration of loan to value ratio to 44.2% Tangible net asset value per share decrease of 6.4% Total return to shareholders at -2.8% Redefine forward yield improvement Perception score on strategy (consistency on delivery) Perception score on governance (particularly board independence) Perception score on disclosure and communication Moodys credit rating maintained Inclusion in FTSE4Good sustainability index Implementation of green funding strategy Value creation outcome HY 2020 FY 2019 Active portfolio operating margin

✓

X

=

N/A

✓

X X X X

✓

=

X

= =

✓ ✓ ✓

=

X X X X

✓ ✓ ✓

N/A

✓

X

=

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Redefine Group results for the six months ended 29 February 2020

Supplementary information

Snapshot of our value creation scorecard by key stakeholder

An employer of choice for employees

Value creation indicator Achieve training and development targets - 8 682 hours recorded Improvement in communication platforms and use of technology Transformation progress across all levels Ensure fair and responsible remuneration Responsible management of staff complement and staff turnover 55% of vacancies filled through internal appointments Absorption of learners and youth identified through upliftment programmes into formal employment Employee engagement maintained Number of employees mentored through Mentorship Challenge Change in employee behaviour due to environmental awareness campaigns Ethics survey score Value creation outcome Certified Top Employer status

✓ ✓

=

N/A

✓ ✓ ✓

=

✓

X

✓

=

✓

X

✓ ✓

X

=

N/A

=

✓

N/A N/A

HY 2020 FY 2019

✓

Outcomes : On track Requires focus Work in progress Introduced in 2020 Not available

✓

X

=

44

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Snapshot of our value creation scorecard by key stakeholder

A differentiated provider of relevant space to tenants

Value creation indicator Tenant retention on target Occupancy rate maintained Footfall in shopping centres maintained Development to uplift capital and improve spaces Rollout of solar PV Address tenant concerns raised through Challenge Convention Growth in tenant-generated turnover in retail spaces Increase number of Green Star certifications Reach tenants through sustainability awareness campaigns Measures put in place to monitor / address issues around environmental impact caused by tenants Improved complaint management turnaround times Improved tenant satisfaction levels Innovative solutions implemented in idle spaces Value creation outcome Growth in total gross lettable area (GLA) space provided

X

✓ ✓

N/A

✓

X

✓ ✓ ✓ ✓

= = = =

✓ ✓ ✓ ✓

X

✓ ✓ ✓ ✓

N/A N/A N/A

=

N/A

HY 2020 FY 2019 Outcomes : On track Requires focus Work in progress Introduced in 2020 Not available

✓

X

=

45

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Snapshot of our value creation scorecard by key stakeholder

A preferred business partner for brokers and suppliers

Value creation indicator Procurement spend towards empowering suppliers Increased share of broker let business Leverage procurement efficiencies Enterprise and supplier development of SMMEs Suppliers agreeing to adhere to Redefine’s code of conduct Value creation outcome Level 3 broad-based black economic empowerment (BBBEE) rating

✓ ✓ ✓

= = =

✓ ✓ ✓ ✓

N/A N/A

HY 2020 FY 2019 Outcomes : On track Requires focus Work in progress Introduced in 2020 Not available

✓

X

=

46

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Snapshot of our value creation scorecard by key stakeholder

A responsible community participant

Value creation indicator Increased stakeholders engaged with the Challenge Convention Increased mentees matched to mentors under The Mentorship Challenge Health and safety scores improved Increased carbon emission savings from solar installations Local community members employed as suppliers and or as staff of tenants Achievement of Corporate Social Investment goals Projects implemented to improve sustainability and the environment in and around our buildings Development activity to support climate resilience Implement ESG strategy Value creation outcome Contribution to community engagement (through CSI and the second Challenge Convention)

=

X

=

✓ ✓ ✓

X

=

✓

=

✓ ✓ ✓

N/A

X

✓

N/A N/A N/A N/A

HY 2020 FY 2019 Outcomes : On track Requires focus Work in progress Introduced in 2020 Not available

✓

X

=

47

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Simplified distributable income statement

Rm Cents per Share Change % HY 2019 distributable income 2 658 49.2 Less HY 2019 non-recurring income (124) (2.3) HY 2019 recurring distributable income 2 534 46.9 Less: dilution arising from new shares

• (0.2)

Less: impact of non-accrual of foreign income (614) (11.3) 1 920 35.4 Organic growth (119) (2.2) HY 2020 recurring distributable income 1 801 33.2 (6.2%) Add HY 2020 non-recurring income 16 0.3 HY 2020 distributable income 1 817 33.5 (32.0%) HY 2020 Rm HY 2019 Rm change % NOI from investment properties 2 699 2 561 5.4% Sundry and trading income 21 39 (46.2%) Total revenue 2 720 2 600 4.6% Administration costs (114) (133) (14.3%) Net operating profit 2 606 2 467 5.6% Net finance charges (745) (484) 53.9% South African distributable income 1 861 1 983 (6.2%) International distributable income (44) 675 (106.8%) Distributable income 1 817 2 658 (31.6%)

48

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Funding snapshot

Funding sources HY 2020 Rbn FY 2019 Rbn Bank borrowings 11.9 12.9 Listed bonds and commercial paper 7.7 9.2 Foreign-listed bonds 2.0 2.5 Unlisted bonds 17.9 16.6 Total debt 39.5 41.2 Mark-to-market of cross currency swaps 1.2 1.0 Cash* (1.6) (0.4) Non-current liabilities held for sale 0.3

• Net debt

39.4 41.8 Loan-to-value ratio (min required <50%) 44.2% 43.9% Average term of debt 3.2 years 3.4 years % of debt secured 68.1% 66.3% % of asset secured 65.1% 65.3% Weighted average cost of ZAR debt 8.9% 9.1% Weighted average cost of FX debt 2.3% 2.3% Weighted average cost of total debt 6.1% 5.8% % of ZAR debt hedged 94.0% 92.6% % of FX debt hedged 78.4% 79.3% % of total debt hedged 88.7% 87.3% Average term of hedges 3.0 years 2.9 years Undrawn facilities (Rbn) 3.5* 5.6 Interest cover ratio (min required >2x) 3.7x 4.3x

*Including cash flow received from sale of ELI on 11 March 2020

49

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Active portfolio income analysis

41% 38% 19% 2% 41% 38% 19% 2%

* Properties owned for 12 months in both years ** Net of recoveries

HY 2020 Active portfolio NOI contribution

HY 2020 Rm HY 2019 Rm Change %

Active portfolio revenue* 3 128 2 946 6.2% Active portfolio costs** (531) (488) 8.8% Property income from active portfolio 2 597 2 458 5.7% Net operating income from acquired/development properties 39 18 116.7% Net operating income from disposed properties 63 85 (25.9%) Net operating income from investment properties 2 699 2 561 5.4% Active portfolio margin % 83.0% 83.4%

Retail Industrial Office Specialised

HY 2019

50

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Debt funding profile

0.8 2.3 8.8 8.5 6.5 4.5 1.6

• 2.2

3.0 5.7 7.2 8.0 2.9 2.0

• 2

4 6 8 10 2020 2021 2022 2023 2024 2025 2026 2027

Maturity of South African debt

Debt Hedges

0.4 0.7 5.4 3.9 4.9 1.6

• 0.4

0.7 3.2 4.1 3.8 0.9

• 2

4 6 2020 2021 2022 2023 2024 2025 2026 2027

Maturity of foreign debt

Debt Hedges Rbn

47.1 56.4 60.4 65.9 68.1 62.2

10 20 30 40 50 60 70 80 FY15 FY16 FY17 FY18 FY19 HY20

Equity headroom for the unsecured lender

1% 1% 1% 1% 2% 2% 3% 4% 4% 5% 5% 5% 8% 10% 13% 17% 18%

NAB and Bank of China Nedbank ABSA - UL Commercial paper National Bank of Australia Liberty Investec Standard Bank Exchangable bond RMB Standard Bank IOM Standard Chartered Standard Bank - UL Nedbank - UL Listed Bonds RMB - UL ABSA Sources of debt (%)

Rbn Rbn

27% 35% 36% 35% 42% 40%

0% 10% 20% 30% 40% 50% FY15 FY16 FY17 FY18 FY19 HY20

Unsecured debt / unencumbered assets

%

71% 58% 68% 70% 66% 68% 60% 53% 63% 67% 65% 65%

0% 20% 40% 60% 80% FY15 FY16 FY17 FY18 FY19 HY20

Secured debt / secured assets

Secured debt Secured assets %

UL = Unlisted Bonds

51

Redefine Group results for the six months ended 29 February 2020

Supplementary information

* Net of cash and cash deposits on cross currency swaps ** The over exposure to GBP debt is due to the impairment of RDI The debt has no recourse to the GBP assets, therefore it does not create liquidity risk but only NAV risk

Currency analysis of property assets and borrowings

HY 2020 FY 2019 Currency Property assets Rbn Debt Rbn NAV hedge % Weighted avg cost % Property assets Rbn Debt Rbn NAV hedge % Weighted avg cost % Net ZAR* 71.3 22.4 31.4% 8.9% 72.8 21.2 29.1% 9.1% AUD 3.9 2.2 56.4% 3.7% 3.6 1.9 52.0% 4.0% EUR 10.6 9.9 93.4% 1.6% 15.8 14.0 89.2% 1.7% GBP** 2.7 4.5 166.7%# 3.0% 2.8 4.1 145.5% 3.0% USD 0.7 0.4 57.1% 3.9% 0.4 0.6 141.0% 4.5% Total 89.2 39.4 44.2% 6.1% 95.4 41.8 43.9% 5.8%

Currency Property assets Rbn Debt Rbn NAV hedge % EUR 10.6 10.7 101.1% GBP 2.7 3.2 118.5%

# Post period end, in order to reduce the overexposure to GBP debt, Redefine refinanced it to EUR debt and settled a portion as follows:

52

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Analysis of non-recurring income

HY 2020 Rm HY 2019 Rm Chariot trading income

• 80

Land trading profit 16 23 EPP withholding tax refund

• 21

Total 16 124

53

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Active portfolio expenditure analysis

Rm % change

Half-year ended February 2019 488 Net municipal costs increased due to the completed development on properties costs filtering through 15 15.7% Net electricity costs decreased through a focus on renewable energy (11) 17.4% Operating costs increased and as a result of developed properties service warranties coming to an end 23 16.3% Repairs and maintenance increased due to planned preventative maintenance strategies 4 6.9% Tenant installations costs are deal driven 4 12.3% Letting commissions are deal driven 1.7% Management fees remain near flat due to the insourcing of certain property management functions 1 2.1% Bad debts provided for on a specific basis 22 57.6% Property admin costs decreased due to cost reduction strategies (15) (10.5%) Half-year ended February 2020 531 8.8%

54

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local active portfolio revenue growth

Active portfolio revenue growth Office Retail Industrial Specialised Total

Active portfolio average rental escalation 7.6% 6.7% 7.5% 9.0% 7.3% Renewal plus new lets net of expiries

• 2.5%
• 2.0%
• 0.6%

18.5%

• 1.2%

Growth in rental income 5.1% 4.7% 6.9% 27.5% 6.0% Growth in other income 0.6%

• 0.7%

0.6% 3.5% 0.1% Growth in 2020 property revenue 5.7% 4.0% 7.5% 31.0% 6.2% Active portfolio NOI growth 6.9% 2.8% 7.6% 23.7% 5.7% Total vacancy August 2019 % 13.4% 4.8% 1.8% 8.3% 6.0% Total vacancy February 2020 % 13.6% 5.6% 2.6% 6.3% 6.6% Vacant properties under refurbishment 1.3% 0.0% 0.5% 0.0% 0.6% Vacant properties held-for-sale 0.0% 0.0% 0.0% 0.0% 0.0% Active vacancy February 2020 12.3% 5.6% 2.1% 6.3% 6.0% Net letting activity post February 2020 0.0%

• 1.5%

0.0% 1.8%

• 0.5%

Current vacancy 12.3% 7.1% 2.1% 4.5% 6.5%

55

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Realising value from sale of non-core assets

Asset description Proceeds Deal progress Local property assets R2.9 billion Various properties are in the process of disposal at average yield of 9.1% Journal (student accommodation in Australia) R3.8 billion Bidding process completed and transaction in legal drafting stage Cromwell R0.5 billion Residual investment well be sold on open market once released from Journal development funding encumbrance Anticipated proceeds R7.2 billion Anticipated to reduce LTV by 4.3%

56

Redefine Group results for the six months ended 29 February 2020

Supplementary information

International distributable income analysis

UK Europe Australia Africa Total international R000 RDI EPP Chariot RDF Europe Cromwell Journal Other Oando Wings Contractual rental income

• 200 615
• 94 748
• 296 363

Investment income

• 22 564
• 835
• 23 399

Total revenue

• 200 615

22 564 94 748 835

• 319 762

Operating costs

• (69 880)
• (28 647)
• (98 527)

Administration costs (176) (453) (4 856) (74 692) (95) (19 753)

• (1)

(100 026) Net operating profit (176) (453) (4 856) 57 043 22 469 46 348 835 (1) 121 209 Other gains

• 1 630
• 1 630

Distributable equity income

• Net distributable profit before finance costs and taxation

(176) (453) (4 856) 58 673 22 469 46 348 835 (1) 122 839 Net interest costs (62 724) (84 513) 11 663 (27 014) (18 347) (21 552) 3 147 (10 622) (209 962)

• Interest income

37

• 12 611

395 26 336 3 147

• 16 552
• Interest expense

(62 761) (84 513) (948) (27 409) (18 373) (21 888)

• (10 622)

(226 514) Distributable foreign exchange gain (6 828) 4 222 5 426 3 118 3 161

• 151

9 250 Net distributable profit before taxation (69 728) (80 744) 12 233 34 777 7 283 24 796 3 982 (10 472) (77 873) Current and withholding taxation (2 640)

• (5 774)

(3 857) (504) (1 071)

• (13 847)

Net income from operations before NCI share (72 368) (80 744) 12 233 29 003 3 426 24 291 2 911 (10 472) (91 720) NCI share of distributable income

• (2 278)
• (2 933)
• (5 211)

Net income before distributable adjustments (72 368) (80 744) 12 233 26 725 3 426 21 358 2 911 (10 472) (96 931) Below the line distributable income adjustments:

• Transaction costs
• 48 509
• 4 587
• 53 096
• Accrual for listed security income
• (239)
• (239)

Distributable income (72 368) (80 744) 12 233 75 234 3 187 25 945 2 911 (10 472) (44 074)

57

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Income hedging position by currency

56.2 68.7 72.4 72.8 71.3 16.5 15.4 18.9 22.6 17.9 18.7 23.6 20.8 21.2 22.4 9.3 11.1 15.7 20.6 17.0

20 40 60 80 100 120

Local property assets Local debt (net of cash) International property assets International debt

FY16 FY17 FY18 FY19 HY20

LTV% Rbn

Analysis of property assets and debt

36.5% 41.1% 40.0% 43.9% 44.2% 72.7 28.0 84.1 34.7 91.3 36.5 95.4 41.8 89.2 39.4

2020 2021 2022 2023 2024 2025 EUR EUR amount (€m) 18.5 24.5 18.0 18.0 12.0 2.5 FEC rate (R: €1) 18.4 19.7 20.9 22.6 23.7 24.6 GBP GBP amount (£m) 27.4 9.5 3.5

• FEC rate (R: £1)

18.5 20.6 20.7

• AUD

AUD amount (A$m) 2.0

• FEC rate (R: A$1)

11.8

58

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Reconciliation of cash generated to total distributable income

HY 2020 R000

Net cash inflow from operating activities (as per statement of cashflows) 2 135 073 Items in cash flow from operating activities, but not related to distributable income 84 306 Working capital changes 31 210 Increase in trade receivables (182 489) Decrease in trade payables 213 699 Capital transaction costs 53 096 Non-cash flow items included in distributable income (20 217) Realised foreign exchange gain 9 250 Amortisation of tenant installations and letting commissions (47 845) Non-cash flow other (10 299) Depreciation on property, plant and equipment (10 543) Share incentive schemes – difference between accrual and payment 39 220 Adjustments to distributable income, not included in IFRS statement of profit and loss 15 861 Trading profit (included in P & L but shown under investing activities) 15 861 Timing differences (384 296) Equity-accounted investments (net of withholding tax) - difference between dividend received and dividend accrual (no dividends accrued in current period) (520 692) Taxation - difference between income and withholding taxation accrued not yet paid / received 16 620 Listed investment (Cromwell) – difference between dividend received and dividend accrual (293) Increase in interest income accrual 41 464 Decrease in interest expense accrual 78 605 Non-controlling interest share of distributable income (13 394) Distributable income for the year 1 817 333

59

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Reconciliation of property assets

Rm August 2019 property asset platform 95 434 Deployment of capital 1 853 Disposals (5 907) Impairments (626) Fair value adjustments (1 731) Foreign exchange adjustments 496 Net equity accounted profit (368) Interest raised 88 Interest settled (47) February 2020 property asset platform 89 192

60

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Property portfolio 100.0% R68.5bn

Retail R28.1bn Office R25.1bn Industrial R13.7bn Specialised (excl Respublica) R1.6bn

Respublica 53.4% R1.1bn Loans receivable and investment in securities* R1.7bn R71.3bn

Redefine’s diversified property asset platform

Portfolio valued at R89.2 billion

Direct local property portfolio Direct international properties International listed securities

RDI REIT PLC 29.4% R2.7bn Cromwell Property Group 2.3% R0.7bn EPP N.V. 45.4% R8.6bn R12.0bn Journal Student Accommodation Fund 90.0% R3.2bn Oando Wings Development Limited 40.6% R0.7bn European Logistics platform 46.5% R1.1bn Chariot Top Group BV 25.0% R0.9bn R5.9bn 80% 13% 4% 3% 0% South Africa Poland Australia UK Africa

Geographic spread by value

Carried at fair value Equity accounted *Includes Edcon and Delta % above represents Redefine's % interest in the asset

61

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local retail portfolio

Market

→ Concern in reduction of disposable income and unemployment on sales and footfall → Greater focus on value and essentials → Entertainment/restaurants will no longer be a key driver of footfall → Online shopping will continue to increase due to lockdown → Structural change to convenience shopping → Vacancy will increase due to retailers downsizing and liquidations → Struggling malls will no longer be relevant and possibly shutdown → Retail categories in distress – restaurants, cinemas, travel, luxury and entertainment → Operating cost increases due to security and cleaning requirements

Activity

→ Disposed of two non-core properties for R445 million → Concluded refurbishments at Kenilworth Centre and Sammy Marks → Edcon exposure reduced by 12 286m² to 55 583m² at February 2020 → Negotiation with retailers on rental relief → Half year valuations completed → Continued negotiations with tenants to right size and secure tenure

Priorities

→ Occupancy/vacancy management through repurposing of premises → Tenant retention and early lease renewal of key retailers → Conclude rental relief arrangements with tenants → Marketing activities to focus on retailer support → COVID-19 compliance - Health and safety will be a key issue → Further reduction of space with Edcon → Continued focus on underperforming assets

62

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local office portfolio

Market

→ Vacancies will continue to increase with rentals while escalations remain under pressure → Densification of space may no longer be a driver for space requirements → Tenant sustainability is a key risk → Increased vacancy and reduced rental in P and A grade properties will allow for tenant movement from secondary markets → Although co-working accommodation may see short term decline, we expect demand to increase medium term → Retention of tenants likely to be driven by rental reductions as cost of relocation may be prohibitive → Operational costs will be impacted due to regulatory requirements as a result of COVID-19

Activity

→ No acquisitions during the period and unlikely for the foreseeable future → Completed refurbishment of 155 West Street at a cost of R168.5 million with current building occupancy of 60% → Disposed of one asset to the value of R92.4 million → The portfolio has 74 Green Star rated certifications with a further 26 in process of being certified → Continued subdivision of space to focus on smaller tenants in selected properties → Half year valuations completed

Priorities

→ Tenant retention remains our top priority → Mitigate increasing vacancy through lease structuring and rental incentives → Conclude rental relief arrangements with tenants in lieu of COVID-19 → Update asset manager strategies → Sustainability initiatives such as water efficiency and waste management → Focus on additional services and flexibility of occupancy structures → Target businesses with growth opportunities

63

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local industrial portfolio

Market

→ Market rentals remain flat while municipal tariffs continue to rise → Pressure from tenants to sign shorter leases → Vacancies are expected to rise particularly in secondary nodes impacted by failing municipal infrastructures → Continued threat of Eskom load-shedding → Potential increase in local manufacturing could impact space requirements → SAA liquidation will impact businesses associated with air cargo in the short / medium term → Manufacturers and suppliers to non-essential retailers are negatively impacted by the lockdown

Activity

→ Focusing on aesthetic refurbishment projects to keep older properties relevant → S&J spec building completed at a cost of R94.7 million → New Massmart DC and the Roche laboratory are under development at a cost of R241.4 million at Brackengate 2 → Infrastructure development at S&J Industrial Estate, Atlantic Hills and Brackengate 2 are in progress at a cost of R468.5 million → Half year valuations completed

Priorities

→ Tenant retention remains our top priority → Mitigate increasing vacancies through lease structuring and rental incentives for tenants → Focus on flexible lease structures to enhance offering to smaller users → Continued efforts to dispose of non-core assets and land holdings → Focus on product differentiation through the acquisition of High-tech industrial and logistics warehousing within key nodes → Concluding negotiations with tenant for rent relief as a result of COVID-19

64

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local portfolio overview

HY 2020 FY 2019 Description Office Retail Industrial Specialised Total Total

Number of properties

106 72 107 15 300 302

Number of tenants

1 125 3 047 407 12 4 591 4 654

Total GLA (m²) (million)

1.2 1.4 1.8 0.0 4.5 4.5

Vacancy (%) active

12.3 5.6 2.1 6.3 6.0 5.1

Vacancy (%) held-for-sale and development

1.3 0.0 0.5 0.0 0.6 0.9

Vacancy (%) total

13.6 5.6 2.6 6.3 6.6 6.0

Asset value (R billion)

25.1 28.1 13.7 2.7 69.6 71.3

Average property value (R million)

237 390 128 178 232 236

Value as % of portfolio

36.1 40.3 19.7 3.8 100.0 100.0

Average gross rent per m² (R)

170.3 171.4 57.8 201.7 122.7 118.4

Weighted average retention rate by GLA

93.3 95.8 97.1 100.0 95.7 93.3

Weighted average retention rate by GMR

94.1 94.9 96.4 100.0 95.0 92.2

Weighted average renewal growth rate (%)

• 1.5
• 2.5

9.4 0.0 2.2

• 2.0

Renewal success rate by GLA (includes monthly leases)

78.7 78.1 77.1 0.0 78.0 73.5

Renewal success rate by GLA (excludes monthly leases)

57.0 52.4 72.5 0.0 60.4 64.8

Weighted average inforce lease escalations by GMR (%)

7.6 6.7 7.5 9.0 7.2 7.3

Weighted average unexpired lease term (remaining) by GMR (years)

3.7 3.1 4.6 1.4 3.6 3.7

65

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local portfolio split

Description Valuation (R000) Value (%) Number of properties Number of properties (%) GLA (m²) GLA (%) GMR (R000) GMR (%) Sector Office 25 141 795 36% 106 35% 1 237 824 28% 182 084 36% Retail 28 087 254 40% 72 24% 1 364 501 30% 220 868 43% Industrial 13 736 208 20% 107 36% 1 829 051 41% 103 040 20% Specialised 2 662 907 4% 15 5% 29 738 1% 5 620 1% Grand total 69 628 164 100% 300 100% 4 461 114 100% 511 612 100% Province Gauteng 50 837 672 73% 209 70% 3 168 016 71% 369 709 72% Western Cape 12 037 333 17% 45 15% 651 245 15% 86 616 16% KwaZulu-Natal 3 093 229 4% 20 7% 286 642 6% 27 085 6% Other 3 659 928 6% 26 8% 355 221 8% 31 202 6% Grand total 69 628 164 100% 300 100% 4 461 114 100% 511 612 100%

66

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local sectoral split

36% 40% 20% 4% BY VALUE (%) 28% 30% 41% 1% BY GLA (%) 36% 43% 20% 1% BY GMR (%) 35% 24% 36% 5% BY NUMBER OF PROPERTIES (%) Office Retail Industrial Specialised

67

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local geographical split

73% 17% 4% 6% BY VALUE (%) 71% 15% 6% 8% BY GLA (%) 72% 17% 5% 6% BY GMR (%) 70% 15% 7% 8% BY NUMBER OF PROPERTIES (%) Gauteng Western Cape KwaZulu-Natal Other

68

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local retail sector

37% 35% 16% 6% 6% BY VALUE (%) 39% 32% 10% 10% 9% BY GLA (%) 5.9% 4.3% 6.7% 7.9% 5.0% BY ACTIVE VACANCY 5.6% 38% 33% 14% 8% 7% BY GMR (%) Community / Small regional Regional Super regional Other Neighbourhood

69

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local office sector

51% 34% 15% VALUE BY GRADE (%) 76% 22% 1% 1% VALUE BY LOCATION (%) 4.6% 14.7% 19.9%

Premium A Grade Secondary

BY ACTIVE VACANCY 12.3% 75% 22% 1% 2% GMR BY LOCATION (%) Premium A Grade Secondary Gauteng Western Cape KwaZulu-Natal Other

70

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local industrial sector

46% 20% 11% 8% 8% 7% 1% BY VALUE (%) 50% 22% 10% 11% 5% 1% 1% BY GLA (%) 2.7% 6.8% BY ACTIVE VACANCY 2.1% 50% 20% 11% 9% 8% 1% 1% BY GMR (%) Hi-tech industrial Industrial units Warehousing / Logistics Light manufacturing Heavy grade industrial Vacant land Retail warehouse Warehousing / Logistics Industrial units

71

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local vacancy profile

Office GLA m² Retail GLA m² Industrial GLA m² Specialised GLA m² Total GLA m² Gauteng 127 063 52 238 25 551 1 875 206 727 Western Cape 26 934 806 19 422 47 162 KwaZulu-Natal 1 701 2 822 1 657 6 180 Other 13 079 20 029 33 108 Total 168 777 75 895 46 630 1 875 293 177 Vacancy % 13.6 5.6 2.6 6.3 6.6 Active vacancy, excluding held-for-sale or under development 12.3 5.6 2.1 6.3 6.0 Total GLA 1 237 824 1 364 501 1 829 051 29 738 4 461 114

72

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local tenant grading

76% 13% 11% TOTAL (%) 69% 18% 13% OFFICE (%) 73% 13% 14% RETAIL (%) 81% 11% 8% INDUSTRIAL (%) Grade A Grade B Grade C

73

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local lease expiry profile by GMR

10 000 20 000 30 000 40 000 50 000 60 000 70 000 Monthly 2020 2021 2022 2023 2024 Beyond 2024 Vacancy Thousands

GMR

Total GMR: 511 612 066

Office Retail Industrial Specialised

Office Retail Industrial Specialised Total

Monthly 14 592 876 13 570 683 1 434 240 4 320 29 602 119 2020 11 121 964 14 771 604 3 618 946 27 619 29 540 133 2021 25 844 676 42 442 748 14 495 818 5 473 843 88 257 085 2022 30 549 207 48 869 244 19 023 827 23 053 98 465 331 2023 18 253 034 33 082 087 9 256 767

• 60 591 888

2024 21 304 573 28 333 787 3 682 019

• 53 320 379

Beyond 2024 60 417 679 39 798 153 51 528 149 91 150 151 835 131 Total GMR 182 084 009 220 868 306 103 039 766 5 619 985 511 612 066

74

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local lease expiry profile by GLA

100 200 300 400 500 600 700 800 900 1 000 Monthly 2020 2021 2022 2023 2024 Beyond 2024 Vacancy Thousands

GLA

Total GLA: 4 461 114 m²

Office Retail Industrial Specialised

Office Retail Industrial Specialised Total

Monthly 106 293 70 848 16 917 6 194 064 2020 70 731 58 480 63 376 87 192 674 2021 149 624 209 282 227 625 27 159 613 690 2022 186 192 257 628 289 772 81 733 673 2023 124 948 188 697 167 916

• 481 561

2024 131 649 191 615 65 711

• 388 975

Beyond 2024 299 610 312 056 951 104 530 1 563 300 Vacancy 168 777 75 895 46 630 1 875 293 177 Total GLA 1 237 824 1 364 501 1 829 050 29 738 4 461 114

75

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local top 10 properties and tenants of total portfolio

Property Region Value (R000) GLA m² Tenant GLA m² GMR (R)

Centurion Mall Gauteng 4 516 923 119 066 MacSteel 554 987 28 684 408 Alice Lane Gauteng 3 253 800 77 491 Pepkor 223 677 22 658 245 115 West Street Gauteng 1 693 000 41 091 Government 178 321 24 982 645 Blue Route Mall Western Cape 1 687 100 56 145 Shoprite 138 090 13 808 609 Black River Western Cape 1 605 000 71 560 Pick n Pay 102 049 10 487 157 Kenilworth Centre Western Cape 1 495 300 53 433 Woolworths 98 070 8 942 817 East Rand Mall (50% share) Gauteng 1 464 000 34 180 Massmart 88 018 9 515 151 Golden Walk Gauteng 1 411 400 45 208 Edcon 82 357 10 121 713 90 Rivonia Road Gauteng 1 153 000 39 964 Hirt and Carter (SA) 47 718 4 444 253 Stoneridge Centre Gauteng 1 145 757 67 891 Standard Bank 46 805 9 984 845 Total top 10 properties 19 425 280 606 029 Total top 10 tenants 1 560 092 143 629 843 Balance of portfolio 50 202 884 3 855 085 Balance of portfolio 2 901 022 367 982 223 Total portfolio* 69 628 164 4 461 114 Total portfolio 4 461 114 511 612 066 % of total portfolio 27.9% 13.6% % of total portfolio 35.0% 28.1%

* Total portfolio value and GLA (m²) includes properties as presented in the local undeveloped land page Also included in the portfolio value is the IFRS 16 value of the right-of-use.asset and properties classified as property, plant and equipment

76

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local top 10 retail properties

Property Region Value (R000) GLA m² Tenant GLA m² GMR (R)

Centurion Mall Gauteng 4 516 923 119 067 Shoprite 107 942 12 129 256 Blue Route Mall Gauteng 1 687 100 56 145 Pick n Pay 102 049 10 487 157 Kenilworth Centre Western Cape 1 495 300 53 433 Woolworths 70 459 5 649 946 East Rand Mall (50% share) Gauteng 1 464 000 34 180 Edcon 58 937 8 807 056 Golden Walk Gauteng 1 411 400 45 208 Pepkor 58 578 11 623 613 Stoneridge Centre Gauteng 1 145 757 67 891 Massmart 55 663 7 302 708 Centurion Lifestyle Centre Gauteng 1 143 200 62 297 Mr Price 45 671 9 407 061 Matlosana Mall North West 1 061 100 65 000 Foschini 42 673 11 040 569 The Boulders Shopping Centre Gauteng 987 567 48 310 Adeo (SA) 33 580 4 041 568 Maponya Mall (51% share) Gauteng 937 584 36 453 Virgin Active (SA) 30 617 5 311 173 Total top 10 properties 15 849 931 587 984 Total top 10 tenants 606 169 85 800 107 Balance of portfolio 12 237 323 776 517 Balance of portfolio 758 332 135 068 200 Total portfolio* 28 087 254 1 364 501 Total portfolio 1 364 501 220 868 307 % of total portfolio 56.4% 43.1% % of total portfolio 44.4% 38.8%

* Total portfolio value and GLA (m²) includes properties as presented in the local undeveloped land page Also included in the portfolio value is the IFRS 16 value of the right-of-use.asset and properties classified as property, plant and equipment

77

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local top 10 office properties

Property Region Value (R000) GLA m² Tenant GLA m² GMR (R)

Alice Lane Gauteng 3 253 800 77 491 Government 126 237 17 692 430 115 West Street Gauteng 1 693 000 41 091 Alexander Forbes 44 611 12 443 717 Black River Western Cape 1 605 000 71 560 Standard Bank 38 726 7 532 841 90 Rivonia Road Gauteng 1 153 000 39 964 Sanlam 35 049 6 824 570 The Towers Western Cape 1 120 000 59 372 Webber Wentzel 34 883 6 443 259 Wembley Office Park Western Cape 789 100 33 626 Bowman Gilfillan 29 957 7 437 111 Rosebank Link Gauteng 744 320 21 756 Wework (SA) 24 453 3 105 083 Boulevard Office Park Western Cape 725 100 31 533 Amazon Development Centre (SA) 20 130 3 645 066 90 Grayston Drive Gauteng 567 400 19 894 Murray & Roberts 19 309 2 237 146 Riverside Office Park Gauteng 562 700 27 284 Nedbank 18 834 3 781 589 Total top 10 properties 12 213 420 423 571 Total top 10 tenants 392 189 71 142 812 Balance of portfolio 12 928 375 814 253 Balance of portfolio 845 635 110 941 197 Total portfolio* 25 141 795 1 237 824 Total portfolio 1 237 824 182 084 009 % of total portfolio 48.6% 34.2% % of total portfolio 31.7% 39.1%

* Total portfolio value and GLA (m²) includes properties as presented in the local undeveloped land page Also included in the portfolio value is the IFRS 16 value of the right-of-use.asset and properties classified as property, plant and equipment

78

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local top 10 industrial properties

Property Region Value (R000) GLA m² Tenant GLA m² GMR (R)

Pepkor Isando Gauteng 906 200 107 017 MacSteel 554 987 28 684 408 Macsteel Lilianton Boksburg Gauteng 694 700 73 071 Pepkor 165 099 11 034 632 Hirt & Carter Cornubia KwaZulu-Natal 591 920 47 718 Hirt and Carter (SA) 47 718 4 444 253 Macsteel Coil Processing Wadeville Gauteng 407 800 52 886 Isuzu Motors (SA) 38 515 2 077 685 Macsteel VRN Roodekop Gauteng 385 200 57 645 Kintetsu World Express (SA) 35 358 2 123 317 Macsteel Tube & Pipe Usufruct Gauteng 369 100 68 822 Massmart 32 355 2 212 443 Cato Ridge DC KwaZulu-Natal 366 200 50 317 Shoprite 30 148 1 679 352 Macsteel Trading Germiston South Gauteng 332 900 56 495 Robertson & Caine 25 295 1 261 825 Wingfield Park Gauteng 290 200 56 486 Coricraft Group 24 253 1 092 715 GM - COEGA Eastern Cape 267 200 38 515 Government 23 805 2 259 509 Total top 10 properties 4 611 420 608 972 Total top 10 tenants 977 533 56 870 140 Balance of portfolio 9 124 788 1 220 079 Balance of portfolio 851 518 46 169 627 Total portfolio* 13 736 208 1 829 051 Total portfolio 1 829 051 103 039 767 % of total portfolio 33.6% 33.3% % of total portfolio 53.4% 55.2%

* Total portfolio value and GLA (m²) includes properties as presented in the local undeveloped land page Also included in the portfolio value is the IFRS 16 value of the right-of-use.asset and properties classified as property, plant and equipment

79

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local undeveloped land

Property Region Value (R000)

S & J Industrial (90% share) Gauteng 725 430 Brackengate 2 Mainland Western Cape 258 011 Galleria (90% share) Gauteng 190 260 Atlantic Hills (55% share) Western Cape 160 759 Cornubia Ptn 18 KwaZulu-Natal 52 291 BGM 5 - Mass Mart (50.1% share) Western Cape 41 733 Boulevard Annex Western Cape 39 728 Golf Air Park III Western Cape 27 300 Masingita Mall (40% share) Gauteng 24 103 Wonderboom Junction Phase 2 Gauteng 24 047 Total undeveloped land 1 543 662 Balance of undeveloped land 31 758 Total undeveloped land 1 575 420 % of total undeveloped land 98.0%

80

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local specialised properties

Property Region Value (R000) GLA m²

Bedford Gardens Hospital Gauteng 361 000 12 817 Southern Sun OR Tambo International Airport Gauteng 22 820 14 153 Total specialised properties 383 820 26 970 Balance of portfolio 2 279 087 2 768 Total specialised portfolio* 2 662 907 29 738 % of total specialised portfolio 14.4% 90.7%

*Total portfolio value and GLA (m²) includes properties presented in the student accommodation page as well as properties classified and property, plant and equipment and properties held for trading

81

Redefine Group results for the six months ended 29 February 2020

Supplementary information

* As at 29 February 2020, the student accommodation portfolio had an average occupancy rate of 96.7% (FY19 83.7%) ** Held for future development applied to 55 Empire Road

Local student accommodation

Property Region Value (R000) Beds

Hatfield Square Gauteng 681 764 2 331 Princeton House Gauteng 393 010 1 846 Roscommon House Western Cape 232 292 582 Saratoga Village Gauteng 210 937 1 077 West City Gauteng 139 790 1 134 Yale Village Gauteng 110 944 330 Lincoln House Free State 103 550 469 Urban Nest Gauteng 58 800 300 The Fields Gauteng 55 160 308 55 Empire Road** Gauteng 41 125 Paton House KwaZulu-Natal 13 768 Total* 2 041 140 8 377

82

Redefine Group results for the six months ended 29 February 2020

Supplementary information

* Land sales do not have GLA or yields ** The proceeds on disposal of the UK assets are based on an exchange rate of R18.6/GBP. The proceeds on disposal of the Polish assets are based on an exchange rate of R16.3/EUR

Disposals – Investment property

Property Province Date

• f transfer

GLA (m²) Proceeds (R000) Yield (%)

Retail 35 986 445 307 10.8 Ermelo Mall Other 29-Nov-19 19 501 253 441 10.8 Alberton Mall Gauteng 29-Nov-19 16 485 191 866 10.8 Office 11 082 92 382

• 22 Fredman Drive

Gauteng 19-Dec-19 11 082 92 382

• Land*
• 67 001
• Wilgespruit (Ext 62)

Gauteng 25-Sep-19

• 6 000
• Centurion Land

Gauteng 13-Nov-19

• 11 769
• Mainland Phase 2

Western Cape 19-Dec-19

• 1 037
• S&J Land (90%)

Gauteng 27-Nov-19

• 48 195
• International**

731 134 6 705 929 6.9 UK townhouses UK 20-Dec-19

• 10 093
• Stryków

Poland 31-Jan-20 77 659 801 960 6.1 European Logistics Investment B.V. Poland 29-Feb-20 653 475 5 893 876 7.0 Grand total 778 202 7 310 619 7.1

83

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Disposals – Held for trading

Property Province Date

• f transfer

Proceeds (R000)

Specialised 46 806 Park Central Gauteng Various 46 806 Land 55 050 Stikland Western Cape Various 2 914 Erf, Atlantic Hills (55% share) Western Cape Various 52 136 Grand total 101 856

84

Redefine Group results for the six months ended 29 February 2020

Supplementary information

* Purchase price includes the cost of land and relates to 100% of the cost. Numbers as shown relate to Redefine's share in the joint ventures. Redefine's share is 47.5% of this cost The purchase prices of the Polish assets are based on an exchange rate of R16.3/EUR

Acquisitions

Property Country Sector Date

• f transfer

GLA (m²) Purchase price (R000) Yield (%)

International Toruń* Poland Land 23-Sep-19 16 902 25 068 6.6 Ruda* Poland Land 23-Sep-19 32 949 28 636 6.6 Grand total 49 851 53 704 6.6

85

Redefine Group results for the six months ended 29 February 2020

Supplementary information

* Land sales do not have GLA or yields

Non-current assets held for sale

Property Province Sector GLA (m²) Proceeds (R000) Yield (%)

Industrial 7 590 31 604 9.8 6 Kruger Gauteng Industrial 7 590 31 604 9.8 Land*

• 42 000
• Kyalami Ridge land

Gauteng Land

• 42 000
• Oando Wings
• 402 518
• Non-current assets held for sale
• 669 847
• Non-current liabilities held for sale
• (267 329)
• 7 590

476 122 9.8

86

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local new developments completed

Property Province GLA (m²) Development cost (R000) Initial yield (%) Completion date

Industrial* 18 568 94 656 9.3 S & J -Spec Jupiter (90% share) Western Cape 18 568 94 656 9.3 Oct-19 94 656 9.3

* Development cost exclude the cost of land

87

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local current new developments in progress

Property Province GLA (m²) Projected dev. cost (R000) Initial yield (%) Projected completion date Still to spend (R000)

Industrial* 52 313 241 351 9.4 205 586 Brackengate MassMart (50.1% share) Western Cape 52 313 168 326 9.3 Oct-20 133 141 Roche at Brackengate 2 (50.1% share) Western Cape

• 73 025

9.5 Nov-20 72 445 Retail* 267 5 500 11.0 4 948 Ottery Burger King DT Western Cape 267 5 500 11.0 May-20 4 948 Grand total 52 580 246 851 9.4 210 534

* Development cost exclude the cost of land

88

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local refurbishments

Refurbishments completed Province Refurbishment cost (R000) Completion date

Office 207 976 155 West* Gauteng 168 461 Oct-19 Knowledge Park* Western Cape 39 515 Dec-19 Retail 47 500 Sammy Marks Phase 3* Gauteng 15 423 Mar-20 Kenilworth Centre* Western Cape 32 077 Feb-20 255 476

Refurbishments in progress Province Projected cost (R000) Projected completion date Still to spend (R000)

Office Black River Park* Western Cape 2 014 Jun-20 2 014 Towers Phase 1* Western Cape 27 137 Jun-20 25 422 29 151 27 436

* Refurbishment costs exclude the cost of land

89

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local new developments/refurbishments

Local new developments future committed pipeline Province GLA (m²) Projected cost (R000) Initial yield (%) Projected start date

Industrial* 20 651 122 952 9.2 Sparepro S & J (90% share) Gauteng 20 651 109 452 9.2 Apr-20 Infrastructure ext 28 Gauteng

• 13 500
• Apr-20

Retail* 10 059 172 580 10.0 Little Falls Phase 2 Gauteng 10 059 172 580 10.0 Nov-20

Local new refurbishments future committed pipeline Province Projected cost (R000) Initial yield (%) Projected start date

Retail* 170 108 8.8 Centurion Lifestyle Centre Gauteng 68 146 3.0 Apr-20 Kyalami Corner Dis-Chem extension Gauteng 21 533

• May-20

Centurion Mall food experience Gauteng 80 429 13.8 Aug-20 Industrial* 10 156

• Wingfield Park upgrades

Gauteng 10 156

• May-20

Province Number

• f beds

Projected cost (R000) Initial yield (%) Projected start date

Student accommodation* 53 550 10.6 Paton House Kwazulu-Natal 538 53 550 10.6 Oct-20

Province Number

• f beds

Projected cost (R000) Initial yield (%) Projected start date

Student accommodation 73 955 9.7 Yale Village Phase 2* Gauteng 196 28 855 8.9 Jul-20 55 Empire Road* Gauteng 462 45 100 10.2 Feb-21

* Development cost exclude the cost of land

90

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Local infrastructure projects

Infrastructure projects completed Province Total dev. cost (R000) Completion date

Industrial S & J Phase 2 (90% share)* Gauteng 18 974 Dec-19 Grand total 18 974

Infrastructure projects in progress Province Total dev. cost (R000) Expected completion date Still to spend (R000)

Industrial* S & J Phase 1 (90% share) Gauteng 135 576 May-20 31 500 Brackengate (50.1% share) Western Cape 178 962 Jun-20 5 375 Atlantic Hills (55% share) Western Cape 153 943 Apr-20 53 375 Grand total 468 481 90 250

* Development cost exclude the cost of land

91

Redefine Group results for the six months ended 29 February 2020

Supplementary information

United Kingdom

Redefine’s interests

→ RDI REIT 29.4%

Platform profile

→ 28% exposure to retail, 24% to offices, 28% to hotels and 19% to industrial assets

Carrying value

→ R2.7 billion

See through value of assets

→ R8.3 billion

See through LTV

→ 110.1% (2019 : 109.5%)

Redefine activity in first half of 2020

→ Following the large drop in the RDI share price, several opportunistic approaches have been received → While the share price is at a deep discount to NAV, it is unlikely that any realistic offers will be made → The focus will now shift to securing the future before any further approaches or strategic options are entertained

Redefine’s strategy

→ Some options may require Redefine to remain invested in the medium-term without committing further equity to RDI or a

sale of the stake

→ Options, if realistic and capable of conclusion, will be considered for Redefine to realise value → Funding arrangements put in place to allow for EUR117.2 million exchangeable bond early redemption

92

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Australia

Redefine’s interests

→ Journal 90% → Cromwell 2.3%

Platform profile

→ 12% exposure to offices, 6% to retail assets and 82% to student accommodation

Carrying value

→ R3.9 billion

See through value of assets

→ R4.5 billion

See through LTV

→ 63.3% (2019: 29.8%)

Redefine activity in first half of 2020

→ A competitive bidding process run by JLL, which drew strong response, has concluded → Final negotiations on the disposal of the Australian student accommodation portfolio are underway → Conclusion of the sale agreement is anticipated by June

Redefine’s strategy

→ Establish Uni Place as the premier student accommodation facility in Melbourne → Central development to be completed by mid-June → Disposal of Journal would release remaining Cromwell units for disposal → The disposals will greatly support our strategic priority to strengthen our balance sheet

93

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Australia | continued

Impact of COVID-19

→ The government has now closed the borders to all inbound travel → The universities are physically closed but facilitating on-line learning. In light of the significant change in circumstances

some students have not been able to arrive in Australia while others have sought to return home Key operational highlights Uni Place semester one

→ Due to the aforementioned travel ban and changes in university operating settings occupancy has dropped → Taking into account non arrivals and processed cancelations/deferrals, we are currently projecting revenue equivalent to

75% occupancy for semester one, which is partly elevated by 12 month bookings from calendar year 2019 running into calendar year 2020 Central semester two

→ The unknown duration of the travel ban means that leasing for semester two will be extremely challenging → The current strategy is to direct the limited inquiry toward Uni Place, on the grounds of mitigating costs, by not opening a

second building (reducing staff, utility etc)

→ In the event that onshore demand for Uni Place exceeds supply, bookings for Central will be opened

Development

→ The construction of Central is due to be completed by mid-June as long as there is no shutdown of building sites. The

project cost is A$110.0 million, with costs to complete of A$20.7 million

94

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Poland

Redefine’s interests

→ EPP 45.4% → Chariot Top Group 25% → European Logistics 46.5%

Platform profile

→ 81% exposure to retail, 9% to office and 10% logistics assets

Carrying value

→ R10.6 billion

See through value of assets

→ R23.4 billion

See through LTV

→ 93.2% (2019 : 89.4%)

Redefine activity in first half of 2020 EPP

→ No change in Redefine’s shareholding in EPP is anticipated in the medium term

European Logistics

→ On 23 December 2019, Redefine entered into a share sale agreement with Madison and Griffin for the disposal of a 46.5%

and 2% interest respectively in the Polish logistics portfolio held through European Logistics Investment B.V (“ELI”)

→ Before the sale, Redefine Europe B.V (“Redefine Europe”), a wholly owned subsidiary of Redefine, held 95% and Griffin 5%

• f the shares in ELI

→ In terms of the agreement, Madison and Griffin agreed to a total equity commitment of EUR150.0 million and

EUR13.4 million respectively over the next five years

→ Following the conclusion of the transaction, Redefine holds a 46.5% equity interest in ELI → Net after the settlement of the purchase price (comprising equity and an earn out applicable to developments in progress),

Madison’s equity commitment is EUR66.3 million with Griffin’s commitment at EUR4.9 million

→ Redefine agreed to match the equity commitment of Madison and will reinvest EUR66.3 million in the platform funded from

the proceeds of the sale of 48.5% of ELI

→ With the exclusivity arrangement with Panattoni still in place, the equity will be invested in new development projects across

Poland

→ Cash flow for the transaction occurred 11 March 2020

95

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Poland | continued

Redefine’s strategy EPP

→ The focus in the short term is for EPP is to get through the crisis period with enough liquidity to maintain operational

functionality

→ Medium term focus is to continue with optimising asset management opportunities within the portfolio as well as de-

leveraging the company to a LTV level below 45%

→ Redefine as a significant shareholder will continue to provide strategic support to the EPP management team

Chariot Top Group

→ The trading opportunity will be unwound as and when deal flow resumes in the Polish market

European Logistics The focus for the immediate future, apart from dealing with the current crisis will be to:

→ Complete the developments in progress in order to receive the earn out fee from Madison → Complete the developments currently under construction as well as let the vacancies → Secure pre letting on current land holdings for further expansion → Continue identifying market opportunities to invest and grow the logistics portfolio in Poland through development activity

Market Overview European Logistics

→ For the 2019 calendar year, the demand for logistic space in Poland, for the third consecutive year, reached nearly

4.0 million m², of which 67% came from new business

→ Poland's five main logistics hubs accounted for 80% of the total demand → The highest lease activity occurred in the Warsaw region (1.3 million m²), followed by Upper Silesia (600 000m²) and then

Central Poland and Wroclaw (590 000m² each)

→ Despite the COVID-19 outbreak, threatening the disruption of global supply chains and business operations, the logistics

industry is maintaining a generally positive outlook

→ Logistics is expected to prove more resilient than other real estate classes in the longer term → A positive demand for space will be generated through rising inventory levels and the acceleration of e-commerce

96

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Poland | continued

European Logistics

Impact of COVID-19 on

• perations

→ To contain the spread of the COVID-19 virus, the Polish government published a decree in March 2020, declaring a nationwide

state of epidemy

→ Pursuant to the decree, business activity has been restricted and any retail trade, except for those that sell groceries, toiletries,

medical supplies and services has been prohibited

→ The decree does not enforce any closure of logistics parks, offices or warehouses and tenants retain access to their premises → Most logistics tenants are still operational → Tenants negatively impacted by the decree, who have decided to close their operations, are mainly suppliers to non-essential

retailers (i.e. furniture) and industries related to automotive manufacturing

→ These closures are voluntary and each request for relief is dealt with on a case-by-case basis → On 29 April a phased plan to open the economy from 4 May was released

Key operational highlights

→ Conclusion of 48.5% share sale to Madison and Griffin → Completion of Strykow sale → Reduction in vacancy to 9.9% → Completion of Warsaw Logistics development (25 510m² GLA) → Approval of three new developments (90 110m² GLA) → New land acquisition in Czeladz approved in February 2020 and sale was executed in March 2020 → Limited negative impact on cash flow from COVID-19 to date → As at 29 February 2020, the total GLA for the operational portfolio, was 392 384m² (444 114m² at 31 August 2019) → The reduction in the GLA is the result of the Strykow sale in January 2020 → The vacancy in the operational portfolio decreased from 71 025m² (16.5%) as at 31 August 2019 to 38 839m² (9.9%) as at 29

February 2020 mainly due to the disposal of the Strykow building with 22 213m² vacant and the letting to NVH (16 235m²) in Bielsko

→ The largest vacancy in the portfolio is 12 566m² at Lodz Business Center II and III where Brand BQ vacated in October 2019 → During the period, good leasing activity was recorded with 18 805m² of lease renewals at an average rent of EUR3.86 per m²

and 18 629m² of new lettings at an average rent of EUR3.78 per m²

→ No rental growth was recorded on lease renewals and new lettings → Included in the operational portfolio is the first phase of Warsaw Logistics (25 510m² GLA) which was completed in the first

quarter of FY2020 and is fully let

→ The development cost is EUR13.6 million with an initial yield of 6.8%

97

Redefine Group results for the six months ended 29 February 2020

Supplementary information

Poland | continued

European Logistics

Acquisitions

→ In March 2020, concluded the acquisition of 8.7ha of well-located, undeveloped land in Czeladz, located in the Upper Silesia

region (the second largest industrial market in Poland), for an amount of EUR3.4 million

→ The multi-phase development of logistic warehousing will have a total GLA of 36 511m² → Phase 1 of the development will consist of approximately 9 200m² GLA → The land is still to be transferred and the development of the warehouses will only start once letting targets are met

Developments Under construction

→ As at 29 February 2020, Torun (16 902m² and 67% let) and the small building at Opole (9 074m² and 88% let) are

substantially complete

→ Other projects still under construction, are the second phase of Warsaw Logistics (47 961m²) and the larger building at

Opole (15 261m²)

→ The projects, with a total development cost (including land) of EUR73.7 million, are expected to yield an initial return of 6.6%

and are on program for completion in FY 2020

→ The second phase of the Warsaw Logistics is also fully let, which is indicative of the strong letting market in Warsaw → To date, no tenant has been secured for the second building at Opole

New development projects

→ In March 2020, three new projects approved - all being developed on existing landholdings → The projects, all started in March 2020, are:

Disposals

→ The sale of Strykow was concluded on 31 January 2020 → Redefine (95%) and Griffin (5%) retained the right to develop the last phase of the Strykow development (22 300m²) over

the next two years

→ The rental guarantee, provided by Redefine Europe and Griffin on the vacant space, is for a maximum period of two years

and can reduce over time with new lettings

Project GLA (m²) Dev cost (EUR ’000) Yield Pre-letting Anticipated completion date Bielsko Biala 2 44 148 29 208 7.3% 40.4% Jul/Aug 2020 Ruda Slaska 1 32 949 17 967 6.2% 63.6% July 2020 Gdansk 1 13 013 7 372 6.3% 27.4% July 2020 Total 90 110 54 547

98

Redefine Group results for the six months ended 29 February 2020

Supplementary information

International new developments

Completed during the year

Country GLA (m²) Development cost (EUR’m) Development cost (Rm) Initial yield (%)

Industrial Warszawa Phase II Poland 25 510 13.6 220.5 6.8 25 510 13.6 220.5 6.8

In progress

Country GLA (m²) Development cost (EUR’m) Development cost (Rm) Initial yield (%) Completion date Still to spend (EUR’m) Still to spend (Rm) Industrial

Warszawa Phase I Poland 47 961 31.5 541.5 6.5 Sep-20 4.9 84.5 Opole Phase I Poland 24 335 18.4 316.8 6.8 Oct-20 1.9 33.0 Torun Building B Poland 16 902 12.4 213.2 6.6 Mar-20 1.6 28.2 89 198 62.3 1 071.5 6.6 8.4 145.7

Country Number

• f beds

Development cost (AUD’m) Development cost (Rm) Initial yield (%) Completion date Still to spend (AUD’m) Still to spend (Rm) Student accommodation

Swanston Street Australia 587 110.0 1 121.0 9.2 Jun-20 20.7 210.7

Future committed timeline

Country GLA (m²) Development cost (EUR’m) Development cost (Rm) Initial yield (%) Completion date Still to spend (EUR’m) Still to spend (Rm) Industrial

Gdańsk Phase II Poland 13 013 7.4 127.2 6.3 Jul-20 7.4 127.2 Ruda Ślaska Phase I Poland 32 949 18.0 308.9 6.2 Jul-20 18.0 308.9 Bielsko-Biała Phase II Poland 44 148 29.2 502.1 7.3 Jul-20 22.7 390.4 90 110 54.6 938.2 6.6 48.1 826.5

99

Redefine Group results for the six months ended 29 February 2020

Disclaimer This presentation may include forward-looking statements which statements are not based on historical information, but rather premised on certain assumptions, risks, estimates and/or uncertainties (“risks and uncertainties”), which are taken into consideration as at date of this presentation. All figures presented are as at 29 February 2020. Should these risks and uncertainties prove inaccurate, or should unknown risks and uncertainties affecting Redefine’s business materialise, the actual results may differ materially from Redefine’s expectations. As a result of risks and uncertainties falling outside of our control, Redefine is not able to guarantee that any forward-looking statements will

• materialise. Attendees are accordingly cautioned in this regard and in respect of reliance placed on forward-looking statements as predictors of future events.

Redefine assumes no obligation and disclaims any intention to update or revise any forward-looking statements (even in the event of new information or change in risks and uncertainties), save to the extent required by the JSE.