1 Redefine group results for the year ended 31 August 2019 Our - - PowerPoint PPT Presentation

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Redefine group results for the year ended 31 August 2019

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Redefine group results for the year ended 31 August 2019

Our conversation

The critical levers that impact our ability to create value

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 attitude Living our purpose

Strategic matters Strategic objectives

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Redefine group results for the year ended 31 August 2019

Growing reputation

Placing people at the heart of what we do Section 01

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Redefine group results for the year ended 31 August 2019

Key outcomes for 2019

Relationships are the lifeblood of our people-centric approach

G r o w i n g r e p u t a t i o n

Environment

Carbon emissions savings from our solar installations for the year equate to taking approximately 6 300 passenger cars off the road Expanded external waste management to

• ffice buildings as part of our Green Star

programme Continue to install various technologies such as online monitoring and leak detection, smart shutoff valves and sensors in bathrooms to reduce water consumption

Social

International Council of Shopping Centres Solal award for Innovation Challenge Centurion Mall and Kyalami Corner won Gold at Footprint Marketing Awards 2019 233 stakeholders engaged with the second Challenge Convention at Maponya Mall

Governance

Improved board independence – appointed Daisy Naidoo. 88% of non-executive directors independent, 50% of board is female 3rd in EY excellence in integrated reporting 2019 Focus on embedding IT governance standards and aligning IT services with current and future business needs

Environmental benefit Return on investment

Waste recycling Water efficiency Groundwater extraction LED retrofit Energy storage Waste water treatment Green Star certifications Green cleaning Solar PV

High Low High

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Redefine group results for the year ended 31 August 2019

Looking ahead

Achieving stakeholder goals to create sustained value 2020 focus Anticipated outcome

Safeguard Redefine’s brand Remain relevant to stakeholders Heighten focus on ESG Improve stakeholder perceptions Embed ESG considerations in all aspects

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

Our stakeholder goals

G r o w i n g r e p u t a t i o n

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Redefine group results for the year ended 31 August 2019

Investing strategically

Positioning the core portfolio to withstand prevailing conditions Section 02

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Redefine group results for the year ended 31 August 2019

Key outcomes for 2019

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

I n v e s t i n g s t r a t e g i c a l l y

Local development activity totaled

R2.4 billion

Offshore expansion totaled

R4.3 billion, with R3.6 billion

invested in Poland Deployed R6.9 billion into property assets Property assets under management expanded to R95.4 billion NTAV declined by

33.0 cents per share to 943.9 cents per share

732 817 556 195 136 678 1 545 Sectoral split of development activities and capital expenditure R4.7 billion Office Retail Industrial Residential Local Student Accommodation Leicester street development Offshore logistics Rm

6 33 50 73 80 2 036 4 659

Atlantic Hills (55%) 55 Empire Road JD Rosslyn (50%) European Logistics Platform land Torre Modderfontein EPP shares Development activities and capex

Capital deployed of R6.9 billion

Rm

Local student accommodation Australian student accommodation European Logistics Platform

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Redefine group results for the year ended 31 August 2019

Local portfolio profile

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

10 093 11 096 12 870 14 382 15 854 333 312 327 315 302 50 100 150 200 250 300 350 5 000 10 000 15 000 20 000 FY15 FY16 FY17 FY18 FY19

Impact of portfolio restructure

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

Retail 40%

• f local portfolio value

(FY18 | 40%)

Carrying value

R72.8 billion

(FY18 | R72.4bn)

18% located in

Western Cape

(FY18 | 17%)

Industrial 19%

• f local portfolio value

(FY18 | 19%)

Office 36%

• f local portfolio value

(FY18 | 37%)

73% located in

Gauteng

(FY18 | 73%)

I n v e s t i n g s t r a t e g i c a l l y

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Redefine group results for the year ended 31 August 2019

Local portfolio highlights

A focus on organic growth

Average value per property of

R236 million

(FY18 | R221m)

Active portfolio capital appreciation of 3.3% Developments in progress total R342.8 million at average projected yield

• f 9.3%

Completed developments totaling R2.7 billion at average yield of 8.9% Disposals totalling

R1.4 billion

at yield of 8.2% Total active vacancy of 5.1%

(FY18 | 4.5%)

Total letting at 841 857m²

(FY18 | 942 102m²)

Tenant retention by GLA 93.3%

(FY18 | 90.4%)

4% 11% 13% 16% 9% 8% 33% 6% 400 800 1 200 1 600

Monthly 2020 2021 2022 2023 2024 Beyond 2024 Vacancy

Lease expiry profile by GLA (m²)

Thousands

8.4% 8.6% 9.2% 9.6% 10.6%

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

Retail Office Industrial Specialised Student accommodation

Exit cap rate per sector I n v e s t i n g s t r a t e g i c a l l y

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Redefine group results for the year ended 31 August 2019

Retail portfolio overview

* Figures are based on top 19 shopping centres

Differentiating by creating outstanding places for modern consumer lifestyles

16% 35% 37% 6% 6% Value by type (%)

Super regional Regional Community / Small regional Other Neighbourhood

I n v e s t i n g s t r a t e g i c a l l y

** Excludes monthly leases

Value

R28.8 billion

(FY18 | R27.8bn)

GLA

1.4 million m²

(FY18 | 1.4 million m²)

Active vacancy

4.6%

(FY18 | 4.5%)

Trading density growth

(like-for-like)

3.0%

(FY18 | 3.3%)

Sales growth

(like-for-like)

4.2%

(FY18 | 3.7%)

Footfall growth

• 1.8%*

(FY18 | -2.0%)

Rent to turnover

8.0%*

(FY18 | 7.9%)

Tenant retention by GLA

94.1%

(FY18 | 90.7%)

Renewal reversion

• 1.8%

(FY18 | 0.1%)

Completed developments and redevelopments of

R959.3 million

at yield of 7.2% Edcon exposure reduced by

11 474m² to

71 223m² Renewal success rate by GLA

72.0%**

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Redefine group results for the year ended 31 August 2019

Office portfolio overview

Efficient, modern facilities to enable work-life integration

51% 34% 15% Value by grade (%)

Premium A Grade Secondary

I n v e s t i n g s t r a t e g i c a l l y

* Excludes monthly leases

Value

R25.4 billion

(FY18 | R25.9bn)

GLA

1.2 million m²

(FY18 | 1.3 million m²)

Active vacancy

10.2%

(FY18 | 9.5%)

Tenant retention by GLA

91.4%

(FY18 | 87.7%)

Renewal reversion

• 2.0%

(FY18 | -3.1%)

Renewal success rate by GLA

56.7%*

Green star rated buildings increased to

74

Solar PV roll-out of

2 408 Kwp

Installation of

WeWork

at Rosebank Link Completed new developments of

R1.3 billion

at yield of 8.4% Redevelopments in progress of

R653.6 million

at yield of 6.5% Disposals

R613.5 million

at yield of 7.5%

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Redefine group results for the year ended 31 August 2019

Industrial portfolio overview

Incorporating key design elements to functionally differentiate our offering

46% 14% 22% 7% 1% 10% Value by type (%)

Land Big box retailer Warehousing / Logistics Industrial units Light manufacturing Heavy grade industrial

I n v e s t i n g s t r a t e g i c a l l y

*Excludes monthly leases

Value

R13.8 billion

(FY18 | R13.1bn)

GLA

1.8 million m²

(FY18 | 1.8 million m²)

Active vacancy

1.8%

(FY18 | 1.0%)

Acquisitions of

R135.8 million

at an average yield of

9.7%

Disposals of

R147.4 million

at a yield of 9.3% Tenant credit risk on the rise –

Robor

in liquidation Renewal success rate by GLA

65.7%*

Tenant retention by GLA

93.8%

(FY18 | 91.8%)

Renewal reversion

• 3.6%

(FY18 | 2.9%)

Completed new developments of

R236.5 million

at yield of 9.2% New developments in progress of

R342.7 million

at yield of 9.3% Infrastructure projects in progress

R720.9 million

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Redefine group results for the year ended 31 August 2019

Alternative Investments

Diversifying income streams

Local student accommodation Loans High yielding Redefine’s interests

→ Current bed capacity at 8 378 → Loans of R1.9 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

Completed developments:

→ Hatfield Square (Pretoria)

2 331 beds

→ Lincoln House (Bloemfontein)

469 beds

→ Roscommon House (Cape Town)

582 beds

→ Loan to BEE consortium for Delta

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

→ 23 Solar PV plants generate 23.7 MWp

→ Non-GLA income growing by 16.2% → Park Central comprising 159 units – 37.9% and

12.1% by value sold and let out respectively

Priorities

→ Expand Yale Village by 196 beds → Expand into Pietermaritzburg

538 beds

→ Demand for specialist assets –

recycle opportunity

→ Provide loan funding to secure

strategic partners and provide transformed opportunities

→ Downside risk on Delta to be

mitigated

→ Pipeline of Solar PV projects to add another

3.5 MWp

→ Leverage non-GLA opportunities off property base → Sell/rent Park Central units → Sale of Oando Wings to Growthpoint Investec

African Properties I n v e s t i n g s t r a t e g i c a l l y

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Redefine group results for the year ended 31 August 2019

International portfolio profile

Geographic diversification in hard currency markets

Listed securities

R12.6 billion

(FY18 | R11.9bn)

Carrying value

R22.6 billion

(FY18 | R18.9bn)

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

Direct properties

R10.0 billion

(FY18 | R7.0bn)

Proportional share of assets R37.3 billion

(FY18 | R32.6bn)

Redefine see through LTV** 51.7%

(FY18 | 46.1%)

Proportional share of debt*

R33.1 billion

(FY18 | R29.9bn)

12% 16% 70% 2%

Geographic spread by value (%)

United Kingdom Australia Poland Africa

I n v e s t i n g s t r a t e g i c a l l y

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Redefine group results for the year ended 31 August 2019

International portfolio highlights

Seeking active asset management opportunities to unlock and sustain value

Expanded logistics through developments of

130 633m2 costing EUR75.2 million

Invested

R3.6 billion

into Poland EPP NAV per share

EUR1.33

Acquired 88.6 million EPP shares for

EUR129.8 million

Leicester street (student accommodation)

• ccupancy at 97%

Interest in GRIT sold for

R18 per share EUR32.8 million of

exchangeable bond redeemed RDI impaired by

R266.4 million

38% 19% 28% 3% 12%

Sectoral spread by value (%)

Retail Office Industrial Student Accomodation Hotels Student accommodation

I n v e s t i n g s t r a t e g i c a l l y

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Redefine group results for the year ended 31 August 2019

European Logistics Platform overview

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

Value of income producing assets

EUR295.0 million

Under construction

EUR63.9 million

at yield of 6.7% GLA added through developments

130 633m2

Income producing GLA

444 114m2

Weighted average unexpired lease term

4.5 years

Active vacancy

16.0%*

Completed new developments

EUR75.2 million

at yield of 6.7% Introduction of

equity investor

at advanced stage

I n v e s t i n g s t r a t e g i c a l l y GLA by tenant type (%)

* 8.5% as at 25 October 2019

9% 25% 23% 28% 10% 3% 1% 1% Distribution Retailer 3PL Production Vacant Delivery Packaging Supplier

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Redefine group results for the year ended 31 August 2019

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 value since August 2016 Changing retail behaviour, Brexit and balance sheet risk contributed to the loss in value Redefine is working closely with RDI to evaluate all options which may require Redefine to remain invested in the medium term without committing further equity The loan to Cornwall Crescent (BEE consortium) is referenced to Delta’s share price as Redefine’s sole recourse is to the shares The loan has been written down by R1.3 billion since inception (June 2017) – from R9 to R1 per share Redefine is working closely with Cornwall Crescent to restore some of the lost value Growthpoint Investec African Properties (GIAP) are first concluding a portfolio transaction with our partners RMB Westport, which is well advanced The sale of our share in Oando Wings will be for shares in GIAP, who plan to list in due course

I n v e s t i n g s t r a t e g i c a l l y

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Redefine group results for the year ended 31 August 2019

Capital allocation priorities 2020

Allocating capital to ensure sustained value creation

Improving: R93.1 million Expanding: R3.0 billion

Revenue enhancing operational capital expenditure Solar PV expansion Local retail development activity Local residential development activity European Logistics Platform developments Australian student accommodation expansion Local industrial developments Local student accommodation developments

Defending: R365.8 million Protecting: R47.6 million

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

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

I n v e s t i n g s t r a t e g i c a l l y

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Redefine group results for the year ended 31 August 2019

Looking ahead

Simplified, focused and significant in each sector / geography

Property portfolio Retail Office Industrial

Indicative asset platform 3+ years

Direct local property portfolio Direct Polish properties International listed securities EPP N.V. European Logistics Platform

I n v e s t i n g s t r a t e g i c a l l y

Anticipated outcome

Grow offshore logistics presence Lift NTAV per share by 6%

2020 focus

Continued focus on asset quality Offshore expansion through development activity Restoring value of underperforming assets

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Redefine group results for the year ended 31 August 2019

Optimising capital

Section Lowering LTV ratio and conserving equity to strengthen the balance sheet

03

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Redefine group results for the year ended 31 August 2019

Key outcomes for 2019

Strengthening the balance sheet is imperative to our sustainability and long-term expansion plans

O p t i m i s i n g c a p i t a l

268 645 1 634 5 123 1 000 2 000 3 000 4 000 5 000 6 000

Shares issued under DRIP Vendor loans repaid Recycling of capital Debt raised Sources of capital of R7.7 billion

Rm

Average cost of debt decreased by 50bps to 5.8% Interest cover ratio maintained at 4.3x

(FY18 | 4.3x)

Implemented a dividend

pay-out policy

Interest rates hedges on

87.3% of total debt

LTV increased to 43.9% Funded deployment of capital of R6.9 billion and working capital of R0.8 billion

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Redefine group results for the year ended 31 August 2019

Currency analysis of property assets and borrowings

* Net of cash and cash deposits on cross currency swaps

** The over exposure to GBP debt is due to the impairment of RDI *** The over exposure to USD debt is due to the impairment of Oando Wings and sale of GRIT The debt has no recourse to the GBP/USD assets, therefore it does not create liquidity risk but only NAV risk

2019 2018 Currency Property assets Rbn Debt Rbn LTV % Weighted average cost % Property assets Rbn Debt Rbn LTV % Weighted average cost % Net ZAR* 72.8 21.2 29.1% 9.1% 72.4 20.8 28.8% 9.3% AUD 3.6 1.9 52.0% 4.0% 2.1 1.4 66.7% 4.1% EUR 15.8 14.0 89.2% 1.7% 11.9 9.4 79.3% 1.6% GBP** 2.8 4.1 145.5%# 3.0% 4.0 4.2 105.1% 3.0% USD*** 0.4 0.6 141.0%# 4.5% 0.9 0.6 63.9% 4.1% Total 95.4 41.8 43.9% 5.8% 91.3 36.5 40.0% 6.3%

Our funding strategy focuses on protecting our net asset value and optimising cost of capital

O p t i m i s i n g c a p i t a l

Currency Property assets Rbn Debt Rbn LTV % AUD 3.6 2.6 73.0% EUR 15.7 15.5 98.6% GBP 2.8 2.3 80.2% USD 0.4 0.2 53.2%

# Post year end, in order to reduce the overexposure to USD and GBP debt, Redefine is in the process of refinancing a portion of this debt into AUD and EUR facilities. Post the refinance the LTV position is anticipated to be:

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Redefine group results for the year ended 31 August 2019

Funding snapshot

Funding sources 2019 Rbn 2018 Rbn Bank borrowings 12.9 12.4 Listed bonds and commercial paper 9.2 5.5 Foreign-listed bonds 2.5 2.5 Unlisted bonds 16.6 15.7 Total debt 41.2 36.1 Loan-to-value ratio 43.9% 40.0% Average term of debt 3.4 years 3.6 years % of debt secured 66.3% 70.4% % of asset secured 65.3% 66.4% Weighted average cost of ZAR debt 9.1% 9.3% Weighted average cost of FX debt 2.3% 2.3% Weighted average cost of total debt 5.8% 6.3% % of ZAR debt hedged 92.6% 81.9% % of FX debt hedged 79.3% 79.8% % of total debt hedged 87.3% 81.2% Average term of hedges 2.9 years 2.8 years Undrawn facilities (Rbn) 5.6 3.8 Interest cover ratio 4.3x 4.3x

Accessing debt funding from diverse sources

Moody’s investment grade credit rating maintained

O p t i m i s i n g c a p i t a l

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Redefine group results for the year ended 31 August 2019

Update on lowering the LTV

Recalibrating to an environment of scarce and costly capital

Improving the LTV is being addressed through a combination of

→ Local property disposals in progress totalling R1.2 billion → Selling non-core assets to realise R8 billion → Introducing an equity investor into the European Logistics Platform → Limiting speculative capital expenditure going forward → Placing a halt on acquisitions → A distribution reinvestment programme was considered inappropriate given the share price → Introduction of a dividend pay-out policy → Restoring value of under-performing assets O p t i m i s i n g c a p i t a l

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Redefine group results for the year ended 31 August 2019

Introduction of a dividend pay-out policy

Conserving retained earnings is integral to building a sustainable capital structure

Rm Cents per share Distributable income for the year 5 472 101.0 Distributable income for H1 2019 2 658 49.2 Distributable income for H2 2019 2 814 51.8 Operational capex requirement for H1 2020 (200) (3.7) Pay-out ratio Dividend for the year 5 272 97.3 96.4% Dividend declared H1 2019 2 658 49.2 100.0% Dividend declared H2 2019 2 614 48.1 92.9%

→ The high LTV ratio limits additional debt funding → Trading at a discount to NAV limits potential to raise equity → A dividend pay-out policy introduces balance sheet flexibility → Introduces a third source of funding → Provides consistent NAV growth as retained earnings

are reinvested into property assets

→ Allows raising equity without diluting NAV → The pay-out policy goes to the heart of sustainability → Withholding is to fund capital expenditure required to

maintain operations

→ There is no distress on the business → We have no defensive capital expenditure backlogs → A pay-out policy of 90% to 100% aligns us to international

REITS and is pitched at a level that poses no tax risk

O p t i m i s i n g c a p i t a l

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Redefine group results for the year ended 31 August 2019

Realising value from sale of non-core assets

Well-considered process to avoid damage to income earning asset base

Asset description Proceeds Strategic motivation for disposal Local property assets (to be identified) R1.5 billion A number of properties are strong candidates Respublica (local student accommodation) R2.5 billion Limited scope to grow into a significant sector on a relative basis within Redefine’s domestic asset platform Journal (student accommodation in Australia) R3.3 billion High investor demand and record low asking income yields on established facilities provides an opportunity to realise capital uplift Cromwell R0.7 billion Residual investment trading at five year high, which can now be sold CGT-free once released from Journal development funding encumbrance Anticipated proceeds R8.0 billion

O p t i m i s i n g c a p i t a l

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Redefine group results for the year ended 31 August 2019

Looking ahead

Positioning the asset base to provide a platform for sustained growth

6.5% 7.5% 8.5% 9.5% 10.5% 11.5% 12.5% 13.5% 14.5% Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 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 Redefine forward yield R186 yield 5 year swap rate

2020 focus

Right-size asset footprint to capital case Introduce dividend pay-out policy

Drivers of the cost of capital O p t i m i s i n g c a p i t a l

Anticipated outcome

Bring LTV ratio back to comfort zone of 35% to 40% Improve forward yield

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Redefine group results for the year ended 31 August 2019

Operating efficiently

Delivering quality sustainable earnings Section 04

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Redefine group results for the year ended 31 August 2019

Key outcomes for 2019

Phasing out non-recurring income is a key focus

O p e r a t i n g e f f i c i e n t l y

454 049m2 renewed

at an average reversion

• f -2%

Active portfolio margin maintained at 83.2% Tenant retention rate at 93.3% Active portfolio occupancy decreased to 94.9% Recurring income growth

• f 6.6%

Total Solar PV capacity increased to 23.7 MWp

4 369 4 789 5 141 462 438 332 4 831 5 227 5 473 1 000 2 000 3 000 4 000 5 000 6 000

2017 2018 2019

Rm

Distributable income analysis

Recurring Income Non-recurring income 10% 90% 8% 92% 6% 94%

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Redefine group results for the year ended 31 August 2019

Financial highlights

In pursuit of delivering sustained value to all our stakeholders

52.8 56.2 68.7 72.4 72.8 11.0 16.5 15.4 18.9 22.6 19.3 18.7 23.6 20.8 21.2 4.2 9.3 11.1 15.7 20.6

20 40 60 80 100 120

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

FY15 FY16 FY17 FY18 FY19

LTV% Rbn 63.8 23.5 72.7 28.0 84.1 34.7 91.3 36.5 95.4 41.8

Analysis of property assets and debt

36.8% 36.5% 41.1% 40.0% 43.9%

International distributable income contribution of

26.8%

(FY18 | 24.0%)

Net operating cost to income ratio maintained at

16.9%

(FY18 | 16.9%)

Full year distribution per share up by 4.0% to

101.0 cents

(FY18 | 5.5%)

Total distributable income has grown by

4.7% to R5.5 billion

(FY18 | 8.2%)

International investments constitute 23.7% of the asset platform

(FY18 | 20.7%)

Total assets now

R102.7 billion up R4.1 billion

(FY18 | R98.7bn)

Market capitalisation at

R45.5 billion

(FY18 | R56.2bn)

Local net property income increased by 5.4% on a like-for-like basis

(FY18 | 6.0%)

O p e r a t i n g e f f i c i e n t l y

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Redefine group results for the year ended 31 August 2019

Simplified distributable income statement

2019 Rm 2018 Rm change % NOI from investment properties 5 245 5 157 1.7% Sundry and trading income 73 113 (35.4%) Total revenue 5 318 5 270 0.9% Administration costs (277) (220) 25.9% Net operating profit 5 041 5 050 (0.2%) Net finance charges (1 037) (1 079) (3.9%) South African distributable income 4 004 3 971 0.8% International distributable income 1 469 1 256 17.0% Distributable income 5 473 5 227 4.7% Rm Cents per Share Change % 2018 distributable income 5 227 97.1 Less 2018 non-recurring income (438) (8.1) 2018 recurring distributable income 4 789 89.0 Less dilution arising from new shares (0.6) Organic growth 352 6.5 2019 recurring distributable income 5 141 94.9 6.6% Add 2019 non-recurring income 332 6.1 2019 distributable income 5 473 101.0 4.0%

A purpose-driven strategy delivering quality earnings in a tough operating environment

O p e r a t i n g e f f i c i e n t l y

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Redefine group results for the year ended 31 August 2019

Contributors to growth in distributable income

A diversified portfolio absorbs headwinds and provides sustained growth

* Net of funding costs

Rm

Tailwinds R941 million Headwinds (R695 million)

2018 distributable income Chariot income increase* Disposal of GRIT Active SA portfolio NOI growth Prior year realised FX gains RDI income decrease* NOI of property disposals Increased admin costs 2019 distributable income Journal SAF EPP income increase* Lower net local finance costs RDF Europe income increase* NOI of SA acquired properties Cromwell & CPT disposal* NOI of SA properties under redevelopment Oando Wings income decrease* Lower sundry income

O p e r a t i n g e f f i c i e n t l y

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Redefine group results for the year ended 31 August 2019

Active portfolio income analysis

36% 43% 20% 1% 36% 43% 20% 1%

Relentless focus on containing cost growth below revenue increase

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

2019 2018 Active portfolio NOI contribution

Office Industrial Retail

2019 Rm 2018 Rm Change % Active portfolio revenue* 5 742 5 457 5.2% Active portfolio costs** (964) (922) 4.6% Property income from active portfolio 4 778 4 535 5.4% Net operating income from acquired/development properties 383 459 (16.6%) Net operating income from disposed properties 84 164 (48.8%) Net operating income from investment properties 5 245 5 158 1.7% Active portfolio margin % 83.2% 83.1%

Specialised

O p e r a t i n g e f f i c i e n t l y

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Redefine group results for the year ended 31 August 2019

1 083.3 1 047.5 (0.2) (1.3) (1.2) (1.9) (5.7) (14.9) (30.1) (99.0) 89.1 22.9 6.4 0.1

950 1 000 1 050 1 100 1 150 1 200 1 250

Growth in net asset value per share (cents)

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

2018 NAV Statutory profit excluding revaluation, forex and impairments Revaluation

• f SA

property portfolio Forex loss on foreign denominated loans Impairment

• f Delta

Distributions paid 2019 NAV NAV increase

• f

international assets Revaluation of hedges and exchangeable bond Impairments Other NAV decrease and impairment of international assets Forex gain on international investments Dilution due to issue of shares EUR 1.6 GBP (4.3) AUD (0.1) USD 2.9 EUR (3.9) GBP 2.3 AUD 0.8 USD (0.4) Journal 12.7 Logistics 6.4 Chariot 2.8 Cromwell 1.0 RDI (11.8) EPP (8.4) Wings (9.3) Grit (0.6) Goodwill (1.1) Loans receivable (0.8)

O p e r a t i n g e f f i c i e n t l y

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Redefine group results for the year ended 31 August 2019

Looking ahead

Letting reshaped by low levels of confidence and subdued economy - demands a broader source of income 2020 focus Anticipated outcome

Focus on organic growth Expand non-GLA income sources Roll-out solar PV interventions Pro-active utilities management Unlock procurement efficiencies Maintain active portfolio margin Significantly reduce non-recurring income

Business confidence Consumer confidence

10 20 30 40 50 60 Overall Building contractors Manufacturing New vehicles Retail Wholesale 4Q18 1Q19 2Q19 3Q19 Optimism Pessimism Index where 50 = neutral

• 5
• 2

1 4 7 10

• 20
• 10

10 20 30 2004 2006 2008 2010 2012 2014 2016 2018 FNB/BER CCI Household spending (RHS) Index %y/y

Source : RMB Source : RMB

O p e r a t i n g e f f i c i e n t l y

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Redefine group results for the year ended 31 August 2019

Engaging talent

Instilling a culture of operational excellence Section 05

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Redefine group results for the year ended 31 August 2019

Key outcomes for 2019

The right people in the right place at the right time

E n g a g i n g t a l e n t

Critical thinking

Problem solving

Creativity

Thinking outside the box

Collaboration

Working with others to achieve a common goal

Communication

How to best convey ideas in a clear and concise manner Business processes restructured to enable

service excellence 200 learners completed

the programme since 2013 Focusing on people not jobs is the key

to sustainability

Certified as a

Top Employer Transformation across

all levels in progress Employee engagement score of 87% - above global and local benchmark

The competencies underpinning our DNA

38

Redefine group results for the year ended 31 August 2019

Looking ahead

2020 focus Anticipated outcome

Instil a culture of innovation and accelerate transformation Maintain staff engagement levels Improved transformation across all levels

Our people are our strategic differentiator

Value distributed R9.5 billion

5 211 2 920 778 327 36 261 Shareholders Providers of debt Government and regulatory bodies Employees Minority interest holders Distributable income retained

Rm E n g a g i n g t a l e n t

39

Redefine group results for the year ended 31 August 2019

Outlook

In summary, our immediate focus is to

Reduce balance sheet risk Deliver sustainable quality earnings Ensure that operational excellence becomes the way in which we approach everything we do Live our values to protect and grow our reputation in every situation Place people at the heart of what we do

Our purpose-driven strategic approach is appropriate for the environment in which we are operating

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

FY15 FY16 FY17 FY18 FY19

CPS

Distributable income per share Interim Final

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

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

FY15 FY16 FY17 FY18 FY19

CPS

Net asset value per share growth NTAV NAV Share price

785 101.0

E n g a g i n g t a l e n t

We anticipate distributable income per share for the 2020 financial year to be in line with 2019

40

Redefine group results for the year ended 31 August 2019

Supplementary information

Section 06

41

Redefine group results for the year ended 31 August 2019

Strategy

S u p p l e m e n t a r y i n f o r m a t i o n

We adopt an agile and uncompromising approach to the way we do business

Our focus is on real estate and related investments – not a particular sector

→ We will continue to build an asset platform that sustains organic growth through: − Continuously improving, expanding and protecting our domestic portfolio − Recycling capital through the sale of assets at the end of their investment life cycle − Unlocking value through active asset management opportunities in offshore markets − Driving innovative business projects to ensure we remain relevant and futureproof our business → We continue to broaden our interpretation of sustainability, looking beyond environmental considerations → We continue to deepen our understanding of our stakeholders’ needs, while managing their impact on us and our impact on them → We focus on proactively managing and enhancing our reputation in all that we do

42

Redefine group results for the year ended 31 August 2019

Top risks

Uncertainty pertaining to long-term impact of geo-political and socio-economic growth factors Impact of disruptive technologies Deteriorating public/state infrastructure and poor administrative delivery locally Inability to effectively manage our reputation Financial market volatility Damage to property and security-related threats Long-term impact of failing to transform at an acceptable rate Increased competition for tenants, capital and property assets Failure to comply with local and international laws and regulations Misalignment with international partners (in-country) Inability to be environmentally resilient Information security resilience Inability to maintain strong ethical and governance culture

Elevated top risk Unchanged top risk Reduced exposure S u p p l e m e n t a r y i n f o r m a t i o n

43

Redefine group results for the year ended 31 August 2019

Key outcomes for 2019

S u p p l e m e n t a r y i n f o r m a t i o n Invest strategically

Deployed R6.9 billion into property assets Property assets under management expanded to R95.4 billion Offshore expansion totalled R4.3 billion, with R3.6 billion invested in Poland Local development activity totalled R2.4 billion NTAV declined by 33.0 cents per share to 944 cents per share

Optimise capital

Average cost of debt decreased by 50bps to 5.8% Implemented a dividend pay-out policy LTV increased to 43.9% Agreed refinance terms for all near term debt maturities Interest rates hedged on 87.3% of total debt

Operate efficiently

Active portfolio margin maintained at 83.2% Active portfolio

• ccupancy at 94.9%

Tenant retention rate at 93.3% Total solar PV capacity increased to 23.7MWp 454 049m2 renewed at an average reversion

• f -2%

Engage talent

200 learners completed the programme since 2013 Certified as a Top Employer Business processes restructured to enable service excellence Employee engagement score of 87% above global and local benchmark Transformation across all levels in progress

Grow reputation

Improved board independence – appointed Daisy Naidoo International Council of Shopping Centres Solal award for Innovation Challenge Centurion Mall and Kyalami Corner won Gold at Footprint Marketing Awards 2019 3rd in EY excellence in integrated reporting 2019 74 Green Star rated buildings

44

Redefine group results for the year ended 31 August 2019

Outcomes : Positive Negative Neutral

Scorecard by key stakeholder

Snapshot of our value creation scorecard by key stakeholder A source of sustained growth in total returns for investors and funders

Value creation indicator Value creation outcome 2019 2018 Active portfolio operating margin maintained at 83.2% Full-year distributable income up 4% to 101 cents (2018: 97.1 cents) per share Reduction of non-recurring distributable income Improvement of loan to value ratio Net tangible asset value per share has decreased by 33.0 cents to R9.44 Total return to shareholders of 7.1% for the year (2018: 17.7%) Redefine forward yield has increased by 400 bps to 12.9% Perception score on strategy (consistency on delivery) Perception score on governance (particularly board independence) Perception score on disclosure and communication Moody’s credit rating maintained

S u p p l e m e n t a r y i n f o r m a t i o n

45

Redefine group results for the year ended 31 August 2019

Outcomes : Positive Negative Neutral

Scorecard by key stakeholder

Snapshot of our value creation scorecard by key stakeholder An employer of choice for employees

Value creation indicator Value creation outcome 2019 2018 Annual employee remuneration at R175.3 million (2018: R174.7 million) 5th year accredited Top Employer status 14 486 man hours spent on training and development (2018: 17 728) Improvement in communication platforms and use of technology Total staff turnover 11.6% (2018: 10.5%) Transformation progress across all levels Ensure fair and responsible remuneration Staff compliment increased by 4% contributing to the broader South Africa’s job creation agenda Absorption of learners into formal employment Employee engagement score of 87% outperforming benchmark N/A

S u p p l e m e n t a r y i n f o r m a t i o n

46

Redefine group results for the year ended 31 August 2019

Outcomes : Positive Negative Neutral

Scorecard by key stakeholder

Snapshot of our value creation scorecard by key stakeholder A differentiated provider of relevant space to tenants

Value creation indicator Value creation outcome 2019 2018 Total gross lettable area (GLA) space provided 4 494 571m2 (2018: 4 874 236m2) Tenant retention 93.3% (2018: 90.4%) Occupancy rate maintained at 95.5% Footfall in shopping centres 5.3% (2018: -2.0%) Development to uplift capital and improve spaces Rollout of solar PV R1.3 million invested at Maponya Mall to address tenant concerns raised through Challenge Convention R27.8 billion tenant-generated turnover in retail spaces (2018: R26.7 billion) 74 Green Star rated buildings (2018: 44)

S u p p l e m e n t a r y i n f o r m a t i o n

47

Redefine group results for the year ended 31 August 2019

Outcomes : Positive Negative Neutral

Scorecard by key stakeholder

Snapshot of our value creation scorecard by key stakeholder A preferred business partner for brokers and suppliers

Value creation indicator Value creation outcome 2019 2018 Level 3 broad-based black economic empowerment (BBBEE) rating 97% of procurement spend towards empowering suppliers 188 538m2 let by brokers Leverage procurement efficiencies

S u p p l e m e n t a r y i n f o r m a t i o n

48

Redefine group results for the year ended 31 August 2019

Outcomes : Positive Negative Neutral

Scorecard by key stakeholder

Snapshot of our value creation scorecard by key stakeholder A responsible community participant

Value creation indicator Value creation outcome 2019 2018 R8 million contribution to community engagement (through CSI and the second Challenge Convention) 233 stakeholders engaged with the second Challenge Convention at Maponya Mall 599 of mentees matched to mentors under The Mentorship Challenge Health and Safety scores improved Carbon emissions savings from our solar installations for the year equate to taking circa 6 300 passenger cars off the road

S u p p l e m e n t a r y i n f o r m a t i o n

49

Redefine group results for the year ended 31 August 2019

Debt funding profile

3.4 2.1 6.8 8.2 6.5 2.9 1.6 5.9 2.9 5.7 6.6 8.0

2 4 6 8 10 2020 2021 2022 2023 2024 2025 2026

Maturity of South African debt

Debt Hedges

73% 71% 58% 68% 70% 66% 68% 60% 53% 63% 67% 65%

0% 20% 40% 60% 80% FY14 FY15 FY16 FY17 FY18 FY19

Secured debt / secured assets

Secured debt Secured assets %

36.6 47.1 56.4 60.4 65.9 68.1

10 20 30 40 50 60 70 80 FY14 FY15 FY16 FY17 FY18 FY19

Equity headroom for the unsecured lender 33% 27% 35% 36% 35% 42%

0% 10% 20% 30% 40% 50% FY14 FY15 FY16 FY17 FY18 FY19

Unsecured debt / unencumbered assets

% Rbn Rbn

2.9 1.3 5.3 3.7 3.7 3.5 0.2 2.5 0.9 3.2 3.9 5.7

2 4 6 2020 2021 2022 2023 2024 2025 2026

Maturity of foreign debt

Debt Hedges Rbn

0% 0% 2% 0% 4% 2% 1% 5% 12% 3% 6% 0% 4% 6% 8% 12% 0% 1% 2% 2% 3% 4% 4% 4% 4% 4% 5% 15% 16%

RMB Offshore mBank Commercial paper Pekao RMB Liberty National Bank of Australia Nedbank Standard Bank Investec Exchangable bond Standard Bank IOM ING Bank Standard Chartered ABSA Listed Bonds

Sources of debt (%)

FY19 FY18

S u p p l e m e n t a r y i n f o r m a t i o n

50

Redefine group results for the year ended 31 August 2019

Analysis of non-recurring income

2019 Rm 2018 Rm Chariot trading income 200 54 Land trading profit 39 41 EPP prior year WHT 31

• Realised foreign exchange gains

28 70 Bonus provision "saving" 20 15 Lease cancellation /property once off gains 14 163 Dipula profit share

• 52

Oando debt raising fee

• 27

EPP guarantee fee

• 16

Total 332 438

S u p p l e m e n t a r y i n f o r m a t i o n

51

Redefine group results for the year ended 31 August 2019

Active portfolio expenditure analysis

Rm % change

Year end August 2018 922 Net municipal costs in line with prior year due to focused recovery strategies (0)

• 0.3%

Net electricity costs improved as a result of improved vacancy rate and associated recoveries (7) 5.9% Operating costs increase in line with legislative and contractual obligations 27 7.3% Repairs and maintenance decreased due to prior year planned preventative maintenance strategies bearing fruit (4)

• 3.5%

Tenant installation (TI) costs are deal driven and reflective of a decreased vacancy rate 10 20.3% Letting commissions are deal driven 1 5.3% Management fees reduction due to the insourcing of certain property management functions (5)

• 13.2%

Bad debts provided for on a specific basis and is reflective of the challenging economic environment 17 37.5% Property admin costs increased marginally due to cost reduction strategies 2 0.9% Year ended August 2019 964 4.5% S u p p l e m e n t a r y i n f o r m a t i o n

52

Redefine group results for the year ended 31 August 2019

Local active portfolio revenue growth

Active portfolio revenue growth Office Retail Industrial Specialised Total

Active portfolio average rental escalation 8.0% 7.0% 7.8% 8.8% 7.5% Renewal plus new lets net of expiries

• 3.0%
• 2.4%
• 1.9%

0.1%

• 2.4%

Growth in rental income 5.0% 4.6% 5.9% 8.9% 5.1% Growth in other income 0.3% 0.1% 0.1% 0.0% 0.1% Growth in 2019 property revenue 5.3% 4.7% 6.0% 8.9% 5.2% Active portfolio NOI growth 5.8% 4.1% 6.0% 8.8% 5.4% Total vacancy August 2018 % 16.0% 5.8% 1.2% 3.0% 6.9% Total vacancy August 2019 % 13.4% 4.8% 1.8% 8.3% 6.0% Vacant properties under redevelopment 2.3% 0.1% 0.0% 0.0% 0.6% Vacant properties held-for-sale 0.9% 0.1% 0.0% 0.0% 0.3% Active vacancy August 2019 10.2% 4.6% 1.8% 8.3% 5.1% Net letting activity post August 2019

• 0.2%

0.3% 1.1% 0.0% 0.5% Current vacancy 10.4% 4.3% 0.7% 8.3% 4.6% S u p p l e m e n t a r y i n f o r m a t i o n

53

Redefine group results for the year ended 31 August 2019

International income analysis

2019 Rm 2018 Rm

EPP N.V. 874 607 Cromwell Property Group 46 311 Chariot 350 109 RDI REIT PLC 203 265 Redefine Europe 189 22 CPT - Northpoint

• 80

Oando Wings 82 89 GRIT 14 24 Journal 13 (9) Other 8 5 Realised foreign gains 28 70 Total foreign income 1 808 1 574 USD funding expense (26) (24) GBP funding expense (123) (107) EUR funding expense (149) (101) AUD funding expense (41) (88) Total foreign funding expense (339) (320) Total net foreign income 1 469 1 254 S u p p l e m e n t a r y i n f o r m a t i o n

54

Redefine group results for the year ended 31 August 2019

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

• 434 197
• 91 676
• 525 873

Investment income

• 44 753
• 1 133

18 061

• 63 947

Total revenue

• 434 197

44 753 91 676 1 133 18 061

• 589 820

Operating costs

• (169 622)
• (41 192)
• (210 815)

Administration costs (424) (1 273) (10 310) (56 738) (535) (25 730)

• (848)

(95 857) Net operating profit (424) (1 273) (10 310) 207 837 44 218 24 754 1 133 18 061 (848) 283 148 Other gains 351

• 40 185

83

• 40 619

Distributable equity income 231 454 843 927

• 3 680
• 1 079 061

Net distributable profit before finance costs and taxation 231 381 842 654 29 875 207 920 47 898 24 754 1 133 18 061 (848) 1 402 828 Net interest costs (123 165) (148 480) 49 702 (35 132) (41 291) (10 116) 8 445

• 59 198

(240 839)

• Interest income
• 52 316
• 156

8 445

• 85 337

146 254

• Interest expense

(123 165) (148 480) (2 614) (35 132) (41 291) (10 272)

• (26 139)

(387 093) Distributable foreign exchange gain 27 617

• 10 830
• 38 447

Net distributable profit before taxation 135 833 694 174 79 577 183 618 6 607 14 638 9 578 18 061 58 350 1 200 436 Current and withholding taxation (27 878) 31 487

• (4 424)

(1 877)

• (1 196)
• (2 945)

(6 833) Net income from operations before NCI share 107 955 725 661 79 577 179 194 4 730 14 638 8 382 18 061 55 405 1 193 603 NCI share of distributable income

• (8 166)
• (1 464)
• (9 630)

Net income before distributable adjustments 107 955 725 661 79 577 171 028 4 730 13 174 8 382 18 061 55 405 1 183 973 Below the line distributable income adjustments:

• Accrual for listed security income
• (260)
• (4 092)
• (4 352)
• Transaction costs relating to business acquisitions
• 18 192
• 18 192
• Other distributable income
• 270 833
• 270 833

Distributable income 107 955 725 661 350 410 189 220 4 470 13 174 8 382 13 969 55 405 1 468 646

International segmental analysis

Values are rounded to the nearest R'000

S u p p l e m e n t a r y i n f o r m a t i o n

55

Redefine group results for the year ended 31 August 2019

Income hedging position by currency

S u p p l e m e n t a r y i n f o r m a t i o n

2020 2021 2022 2023 2024 2025 EUR EUR amount (€m) 42.0 24.5 18.0 18.0 12.0 2.5 FEC rate (R: €1) 18.0 19.7 20.9 22.6 23.7 24.6 GBP GBP amount (£m) 12 9.5 3.5

• FEC rate (R: £1)

20.0 20.6 20.7

• AUD

AUD amount (A$m) 4.0

• FEC rate (R: A$1)

11.7

56

Redefine group results for the year ended 31 August 2019

Reconciliation of cash generated to total distributable income

2019 R000

Net cash inflow from operating activities (as per statement of cashflows) 4 624 774 Items in cash flow from operating activities, but not related to distributable income 279 217 Working capital changes 299 688 Increase in trade receivables (43 784) Decrease in trade payables (255 904) Merger costs 20 709 Capital gains tax (41 180) Non-cash flow items included in distributable income (78 394) Realised foreign exchange gain 27 879 Amortisation of tenant installations and letting commissions (85 150) Depreciation on property, plant and equipment (23 730) Share incentive schemes – difference between accrual and payment 2 607 Adjustments to distributable income, not included in IFRS statement of profit and loss 316 516 Antecedent distribution on shares issued during the year 6 770 Chariot (shown under investing activities) 270 832 Trading profit (included in P & L but shown under investing activities) 38 914 Timing differences 366 764 Equity-accounted investments (net of withholding tax) - difference between dividend received and dividend accrual 200 530 Taxation - difference between income and withholding taxation accrued not yet paid / received 13 768 Delta - difference between interest accrual and distribution received 91 204 Listed investment (Cromwell) – difference between dividend received and dividend accrual (260) Listed investment (GRIT) – difference between dividend received and dividend accrual (4 092) Interest income – accrued not yet received 162 185 Interest expense – accrued not yet paid (96 571) Non-controlling interest share of distributable income (36 242) Distributable income for the year 5 472 635

S u p p l e m e n t a r y i n f o r m a t i o n

57

Redefine group results for the year ended 31 August 2019

Reconciliation of property assets

Rm August 2018 property asset platform 91 335 Deployment of capital 6 292 Disposals (1 634) Impairments (393) Fair value adjustments 904 Foreign exchange adjustments (44) Net equity accounted profit (1 103) Interest raised 216 Interest settled (139) August 2019 property asset platform 95 434

S u p p l e m e n t a r y i n f o r m a t i o n

58

Redefine group results for the year ended 31 August 2019

Property portfolio 100.0% R70.0bn

Retail R28.8bn Office R25.4bn Industrial R13.8bn Specialised R2.0bn

Respublica 53.4% R1.3bn Loans receivable and investment in securities* R1.5bn R72.8bn

Redefine’s diversified property asset platform

Portfolio valued at R95.4 billion

Direct local property portfolio Direct international properties International listed securities

RDI REIT PLC 29.4% R2.8bn Cromwell Property Group 2.3% R0.9bn EPP N.V. 45.4% R9.0bn R12.7bn Journal Student Accommodation Fund 90.0% R2.8bn Oando Wings Development Limited 40.6% R0.4bn European Logistics Platform 95.0% R5.8bn Chariot Top Group BV 25.0% R0.9bn R9.9bn 76% 4% 0% 3% 17% South Africa Australia Africa UK Poland

Geographic spread by value

Carried at fair value Equity accounted *Includes Edcon and Delta

S u p p l e m e n t a r y i n f o r m a t i o n

59

Redefine group results for the year ended 31 August 2019

Local investment strategy

Diversify exposure across traditional sectors Exposure to key economic nodes Locations that have solid infrastructure to reduce leasing risk Lower tenant risk an improve profile Continue to expand and improve existing well-located properties through development Invest in younger (more efficient), well-located and better-quality properties with longer leases and A-grade tenants Recycle non-core assets to position the portfolio for sustained organic growth Continued implementation of long-term strategy on an asset-by-asset basis Selective acquisitions in under-represented regions and to complement existing assets

Investment criteria Our focus

Placed on hold until capital markets and loan-to-value ratio normalise

S u p p l e m e n t a r y i n f o r m a t i o n

60

Redefine group results for the year ended 31 August 2019

Retail portfolio

Market

→ South African shopping centre year-on-year trading density growth of 5.6% as at June 2019 → Continued pressure on total cost of occupation - pushback on rentals and escalations → Retailers continue to focus on ‘right sizing’ → Banks reducing their footprint in shopping centres → Entertainment and food are key drivers of footfall and spend → Administered costs impacting margins of tenants and owners → Security, parking charges and convenience will have greater influence on shopping behaviour → Co dependency of physical retail and online shopping platforms

Activity

→ No acquisitions during the period → Disposed of four non-core properties for R283.8 million → Concluded development of Centurion Lifestyle Walk, Park Meadows Builders Express, Brackengate Planet Fitness and Little Falls Leroy Merlin for a total of R415.5 million → Increased entertainment and restaurant offering at larger malls → Edcon exposure reduced by 11 474m² to 71 223m² at August with a potential further reduction of 8 961m² by end Dec 2019 → Centurion Mall redevelopment complete at a cost of R1.06 billion → Soft refurbishments and major tenant reconfigurations were completed at Horizon, Boulders and Besterbrown

Priorities

→ Occupancy management → Tenant retention and early lease renewal of key retailers → Completion of soft refurbishments and major tenant reconfigurations at Kenilworth, Sammy Marks, Centurion Lifestyle and Goldfields → Further reduction of space with Edcon → Driving sales growth to support rental levels → Continued focus on underperforming assets → Management of administered costs → Sustainability initiatives such as water efficiency, waste management and renewable energy solutions → Innovative entertainment offering (gaming, pause areas and sporting facilities) → Limit operating cost growth → Strategic approach to security → Reconfiguring banking malls

S u p p l e m e n t a r y i n f o r m a t i o n

61

Redefine group results for the year ended 31 August 2019

Retail asset optimisation initiatives

Expanding Protecting Improving Improving

Wilgespruit (Little Falls)

GLA 19 665m² Phase 1 completed March 2019 with installation of Leroy Merlin (17 000m²) and Decathlon (2 665m²) Assessing viability of Phase 2 8 000m² to 10 000m², convenience retail shopping centre Cost R298 million

Centurion Lifestyle Centre

GLA 62 297m² Refurbishing and enclosing Checkers mall Reconfiguring traffic flow to improve the access to the parking deck and improving tenant mix by adding restaurants and lifestyle tenants Cost R68 million

Kenilworth Centre

GLA 53 179m² Refurbishment of ground floor mall (tiles, columns, walls, ceilings and lighting) to align to upper level completed in 2017 Terminated Edgars lease and replaced with Dis-Chem, Mr Price and various line stores Occupation October 2019 Cost R25.8 million

Sammy Marks Square

GLA 35 795m² Improving the fashion component by expanding Foschini and Truworths and adding G-Star and Fabiani. Also adding a new McDonalds together with upgrade of the square Improving the non-GLA offering with the addition of a digital screen Cost: R22 million

S u p p l e m e n t a r y i n f o r m a t i o n

62

Redefine group results for the year ended 31 August 2019

Office portfolio

Market

→ Continued increase in vacancy with pressure on rentals and escalations → Increases in administered costs impacting total cost of occupation → Demand is driven by consolidation, densification, public transport and parking → Space densification is driving up operating costs and increasing pressure on infrastructure → P-grade and high end A-grade properties remain in demand in key nodes → Co-working environments have become a market disruptor → Third party tenant representation growing aggressively through broker involvement → The cost of retaining and securing a tenant continues to increase

Activity

→ No acquisitions during the period and unlikely for the foreseeable future → Completed development of Rosebank Link (100% let) and 2 Pybus (75% let) at a cost of R1.3 billion → Disposed of eleven non-core properties for R613.5 million → Continued rejuvenation of smaller properties → Continued focus on deepening tenant and broker relationships → Green star rated buildings increased to 73 → Solar PV and sustainability rollout of 2408kWp with pipeline of 169 kWp → Installation of WeWork at Rosebank Link → Sub-division of vacant space to allow smaller user flexibility

Priorities

→ Tenant retention and reducing vacancies remains our top priority → Completion of 155 West street and Knowledge Park redevelopments at R653.6 million → Disposal of non-core assets → Continue to strengthen relationships with third-party brokerages → Extend lease profile → Management of WeWork leases → Development focus to improve building densification and improve parking ratios → Sustainability initiatives such as water efficiency and waste management → Continue to increase number of green star rated buildings

S u p p l e m e n t a r y i n f o r m a t i o n

63

Redefine group results for the year ended 31 August 2019

Office asset optimisation initiatives

Expanding Protecting Improving

2 Pybus Road Knowledge Park I Clearwater Office Park Hillcrest Office Park Silverstream Office Park

GLA: 12 903m² Completion: December 2018 Tenants: Group 1 advocates, Rivonia group of advocates A premium grade development in the heart of Sandton in close proximity to Gautrain Development cost: R475.5 million GLA: 6 200m² Previously occupied by Discovery Full internal and external refurbishment with projected completion January 2020 Cost: R38 million GLA: 19 620m² The external facades and common spaces for 2 of the 6 buildings are upgraded to remain ahead of market conditions GLA: 21 661m² The park was refurbished to an A Grade specification Allowing subdivision for smaller tenants GLA: 16 811m² The bathrooms and foyers are being upgraded in line with renewal requirements for Publisis (6 000m2) Total cost: R60 million The A grade offices are being refreshed to achieve competitive rentals

S u p p l e m e n t a r y i n f o r m a t i o n

64

Redefine group results for the year ended 31 August 2019

Industrial portfolio

Market

→ Limited rental growth with pressure to sign shorter leases → Policy uncertainty causing erratic demand for new premises → Failing municipal infrastructure contributes to rising vacancies in older industrial nodes → Increases in administered costs adding pressure to rental growth → Larger logistics operators are taking advantage of competitive market rates → International data and web service providers investing in new facilities in Gauteng and the Western Cape → Continued threat of Eskom load-shedding → Delays in town planning processes impacting development opportunities → Gauteng development environment is extremely competitive

Activity

→ Completed development of Hirt & Carter (Cornubia) and Brights (Brackengate 2) for a cost of R236.5 million → Acquired property to the value of R135.8 million → Disposed of two non-core properties for R147.4 million and land of 177 067m² for R191.3 million → S&J Industrial Estate Spec Building as well as the new Massmart DC at Brackengate 2 are under development at a cost of R342.8 million → Infrastructure development at S&J Industrial Estate, Atlantic Hills and Brackengate 2 are in progress at a cost of R721 million → Installing six solar PV projects with a first year generation capacity of 4 million KWh at a projected weighted yield of 16% → Water security projects were fully commissioned in the Western Cape and similar projects are under investigation in Gauteng

Priorities

→ Tenant retention and reduction of vacancy is our top priority → Focus on relationships with corporate real estate representatives → S&J Industrial Estate - finalise town planning processes → Continued efforts to dispose of non-core assets and land holdings → Implementation of power, water and waste management projects → Improve aesthetics, functionality and efficiency of mini parks to attract tenants → Focus on product differentiation → Leasing of Robor (Isando) property measuring 120 000m²

S u p p l e m e n t a r y i n f o r m a t i o n

65

Redefine group results for the year ended 31 August 2019

Industrial asset optimisation initiatives

Expanding Protecting Protecting Improving

Brights Hardware, Brackengate 2

GLA:13 605m² Easy access off the R300 freeway via Bottelary Road New flagship facility for the Western Cape based Hardware chain Occupation June 2019 Total cost: R100 million (RDF 50.1%)

Wingfield Park, Jet Park

GLA: 56 486m² Conveniently located within 5km of O.R Tambo international airport General refurbishment of roofs, road resurfacing, fire sprinkler system and electrical ring main improvement Cost: R7.4 million

190 Barbara Road, Elandsfontein

GLA: 24 398m² Central within the Tunney/Elandsfontein industrial node Reorientation of access within the yards to improve vehicle circulation Cost: R690 000

Jupiter Ext 1, Germiston

GLA: 11 508m² Completion: October 2019 Adjacent to Geldenhuys interchange. New roof overlay, expanding the truck yard by 5 460m². Improvements to N3 facing façade Cost: R5.36 million

S&J??

S u p p l e m e n t a r y i n f o r m a t i o n

66

Redefine group results for the year ended 31 August 2019

Local portfolio overview

Description Office Retail Industrial Specialised 2019 2018

Number of properties 107 74 105 16 302 315 Number of tenants 1 116 3 126 402 10 4 654 4 967 Total GLA (m²) (million) 1.2 1.4 1.8 0.0 4.5 4.6 Vacancy (%) active 10.2 4.6 1.8 8.3 5.1 4.5 Vacancy (%) held-for-sale and development 3.2 0.2 0.0 0.0 0.9 2.4 Vacancy (%) total 13.4 4.8 1.8 8.3 6.0 6.9 Asset value (R billion) 25.4 28.8 13.8 3.3 71.3 69.7 Average property value (R million) 237 389 131 205 236 221 Value as % of portfolio 35.6 40.4 19.3 4.6 100.0 100.0 Average gross rent per m² (R) 162.1 165.4 55.7 194.7 118.4 112.3 Weighted average retention rate by GLA 91.4 94.1 93.8 96.0 93.3 90.4 Weighted average retention rate by GMR 91.6 92.7 92.2 94.8 92.2 89.4 Weighted average renewal growth rate (%) (2.0) (1.8) (3.6) 0.0 (2.0) (1.5) Renewal success rate by GLA (includes monthly leases) 71.3 82.3 68.8 0.0 73.5 0.0 Renewal success rate by GLA (excludes monthly leases) 56.7 72.0 65.7 0.0 64.8 0.0 Weighted average inforce lease escalations by GMR (%)* 7.7 6.9 7.5 8.8 7.3 7.4# Weighted average unexpired lease term (remaining) by GMR (years)** 3.7 3.1 4.9 1.9 3.7 3.7#

* Excludes expired but active leases and leases expiring within one year ** Excludes expired but active leases # Restated with new method of calculation

S u p p l e m e n t a r y i n f o r m a t i o n

67

Redefine group results for the year ended 31 August 2019

Portfolio split

Description Valuation (R000) Value (%) Number of properties Number of properties (%) GLA (m²) GLA (%) GMR (R000) GMR (%) Sector Office 25 398 882 36% 107 35% 1 249 501 28% 175 296 35% Retail 28 809 375 40% 74 25% 1 399 221 31% 220 282 44% Industrial 13 763 583 19% 105 35% 1 816 064 40% 99 315 20% Specialised 3 284 499 5% 16 5% 29 785 1% 5 317 1% Grand total 71 256 339 100% 302 100% 4 494 571 100% 500 210 100% Province Gauteng 52 071 714 73% 211 70% 3 193 848 71% 355 960 71% Western Cape 12 438 961 18% 47 16% 691 900 16% 86 473 17% KwaZulu-Natal 3 062 299 4% 20 6% 284 125 6% 26 394 6% Other 3 683 365 5% 24 8% 324 699 7% 31 382 6% Grand total 71 256 339 100% 302 100% 4 494 571 100% 500 210 100%

S u p p l e m e n t a r y i n f o r m a t i o n

68

Redefine group results for the year ended 31 August 2019

Local sectoral split

36% 40% 19% 5% BY VALUE (%) 28% 31% 40% 1% BY GLA (%) 35% 44% 20% 1% BY GMR (%) 35% 25% 35% 5% BY NUMBER OF PROPERTIES (%) Office Retail Industrial Specialised S u p p l e m e n t a r y i n f o r m a t i o n

69

Redefine group results for the year ended 31 August 2019

Local geographical split

73% 18% 4% 5% BY VALUE (%) 71% 16% 6% 7% BY GLA (%) 71% 17% 6% 6% BY GMR (%) 70% 16% 6% 8% BY NUMBER OF PROPERTIES (%) Gauteng Western Cape KwaZulu-Natal Other S u p p l e m e n t a r y i n f o r m a t i o n

70

Redefine group results for the year ended 31 August 2019

Local retail sector

16% 35% 37% 6% 6% BY VALUE (%) 9% 31% 41% 10% 9% BY GLA (%) 8.6% 3.5% 3.9% 9.9% 1.5%

Super regional Regional Community / Small regional Neighbourhood Other

BY ACTIVE VACANCY 4.6% 14% 33% 40% 7% 6% BY GMR (%) Super regional

Regional Community / Small regional Other Neighbourhood S u p p l e m e n t a r y i n f o r m a t i o n

71

Redefine group results for the year ended 31 August 2019

75% 23% 1% 1% VALUE BY LOCATION (%)

Local office sector

51% 34% 15%

VALUE BY GRADE (%) 3.3% 12.9% 17.3% BY ACTIVE VACANCY 10.2% 74% 23%

1% 2%

GMR BY LOCATION (%) Premium A Grade Secondary Gauteng Western Cape KwaZulu-Natal Other S u p p l e m e n t a r y i n f o r m a t i o n

72

Redefine group results for the year ended 31 August 2019

48% 16% 25% 10% 1% BY GLA (%) Land Big box retailer

Local industrial sector

46% 14% 22% 7% 1% 10%BY VALUE (%) 50% 17% 21% 11% 1% BY GMR (%) Warehousing / Logistics Industrial units Light manufacturing Heavy grade industrial 1.7% 9.5% BY ACTIVE VACANCY 1.8% S u p p l e m e n t a r y i n f o r m a t i o n

73

Redefine group results for the year ended 31 August 2019

Local vacancy profile

Office GLA m² Retail GLA m² Industrial GLA m² Specialised GLA m² Total GLA m² Gauteng 138 255 42 526 26 952 2 481 210 214 Western Cape 15 549 837 5 077 21 463 KwaZulu-Natal 2 295 3 542 1 129 6 966 Other 11 809 20 177 31 986 Total 167 908 67 082 33 158 2 481 270 629 Vacancy % 13.4 4.8 1.8 8.3 6.0 Active vacancy, excluding held-for-sale or under development 10.2 4.6 1.8 8.3 5.1 Total GLA 1 249 501 1 399 221 1 816 064 29 785 4 494 571

S u p p l e m e n t a r y i n f o r m a t i o n

74

Redefine group results for the year ended 31 August 2019

Local tenant grading

70% 18% 12% OFFICE (%) 81% 12% 7% INDUSTRIAL (%) 75% 13% 12% RETAIL (%) Grade A Grade B Grade C 76% 14% 10% TOTAL (%) S u p p l e m e n t a r y i n f o r m a t i o n

75

Redefine group results for the year ended 31 August 2019

Local lease expiry profile by GMR

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

GMR

Total GMR: R500 209 842

Office Retail Industrial Specialised S u p p l e m e n t a r y i n f o r m a t i o n

Office Retail Industrial Specialised Total

Monthly 12 242 985 9 695 166 1 197 092

• 23 135 243

2020 29 114 099 40 710 115 9 320 878 31 939 79 177 031 2021 21 920 095 41 419 725 12 686 700 5 262 037 81 288 557 2022 29 280 359 47 084 093 18 229 119 23 053 94 616 624 2023 14 701 465 28 129 972 7 004 692

• 49 836 129

2024 20 218 667 26 691 679 2 780 584

• 49 690 930

Beyond 2024 47 818 013 26 551 304 48 096 012

• 122 465 329

Total GMR 175 295 683 220 282 054 99 315 077 5 317 029 500 209 842

76

Redefine group results for the year ended 31 August 2019

Local lease expiry profile by GLA

Office Retail Industrial Specialised

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

GLA

Total GLA: 4 494 571m²

S u p p l e m e n t a r y i n f o r m a t i o n Office Retail Industrial Specialised Total Monthly 97 528 47 587 15 454 160 568 2020 171 244 186 029 148 767 93 506 133 2021 135 281 217 302 206 091 27 130 585 804 2022 185 741 254 497 282 745 81 723 064 2023 100 018 175 497 144 096 419 611 2024 129 204 189 626 45 310 364 139 Beyond 2024 262 578 261 602 940 443 1 464 623 Vacancy 167 908 67 082 33 158 2 481 270 629 Total GLA 1 249 501 1 399 221 1 816 064 29 785 4 494 571

77

Redefine group results for the year ended 31 August 2019

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

Centurion Mall Gauteng 4 705 834 119 035 Macsteel 552 641 26 559 637 Alice Lane Gauteng 3 257 288 78 665 Pepkor 224 614 22 290 941 115 West Street Gauteng 1 690 000 41 091 Government 178 315 24 380 570 Blue Route Mall Western Cape 1 688 319 56 145 Shoprite 153 270 14 734 733 Black River Western Cape 1 585 900 71 579 Robor 120 277 4 816 434 Kenilworth Centre Western Cape 1 477 800 53 433 Pick n Pay 102 040 10 268 751 East Rand Mall (50% share) Gauteng 1 455 000 34 201 Edcon 94 643 12 165 489 Golden Walk Gauteng 1 408 100 45 214 Woolworths 93 937 8 377 992 90 Rivonia Road Gauteng 1 195 904 39 964 Massmart 91 644 9 649 294 Stoneridge Centre Gauteng 1 189 000 67 816 Standard Bank 54 870 10 769 716 Total top 10 properties 19 653 145 607 143 Total top 10 tenants 1 666 251 144 013 557 Balance of portfolio 51 603 194 3 887 428 Balance of portfolio 2 828 320 356 196 285 Total portfolio 71 256 339 4 494 571 Total portfolio 4 494 571 500 209 842 % of total portfolio 27.6% 13.5% % of total portfolio 37.1% 28.8%

Local top 10 properties and tenants of total portfolio

S u p p l e m e n t a r y i n f o r m a t i o n

78

Redefine group results for the year ended 31 August 2019

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

Centurion Mall Gauteng 4 705 834 119 035 Shoprite 121 563 12 890 188 Blue Route Mall Western Cape 1 688 319 56 145 Pick n Pay 102 040 10 268 751 Kenilworth Centre Western Cape 1 477 800 53 433 Edcon 71 223 11 002 390 East Rand Mall (50% share) Gauteng 1 455 000 34 201 Woolworths 66 326 5 307 603 Golden Walk Gauteng 1 408 100 45 214 Pepkor 59 515 11 474 835 Stoneridge Centre Gauteng 1 189 000 67 816 Massmart 55 663 6 999 720 Matlosana Mall North West 1 163 649 65 000 Mr Price 46 200 9 184 088 Centurion Lifestyle Centre Gauteng 1 138 900 62 297 Foschini 42 889 10 909 003 The Boulders Shopping Centre Gauteng 997 622 48 310 Adeo (SA) 33 673 2 190 959 Maponya Mall (51% share) Gauteng 911 637 36 453 Virgin Active (SA) 30 617 5 405 414 Total top 10 retail properties 16 135 861 587 904 Total top 10 retail tenants 629 719 85 632 951 Balance of portfolio 12 673 514 811 317 Balance of portfolio 769 512 134 649 103 Total portfolio 28 809 375 1 399 221 Total portfolio 1 399 221 220 282 054 % of total retail portfolio 56.0% 42.0% % of total retail portfolio 45.0% 38.9%

Local top 10 retail properties

S u p p l e m e n t a r y i n f o r m a t i o n

79

Redefine group results for the year ended 31 August 2019

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

Alice Lane Gauteng 3 257 288 78 665 Government 126 237 17 091 972 115 West Street Gauteng 1 690 000 41 091 Standard Bank 46 783 8 361 279 Black River Western Cape 1 585 900 71 579 Alexander Forbes 44 611 11 665 792 90 Rivonia Road Gauteng 1 195 904 39 964 Webber Wentzel 34 883 6 160 121 The Towers Western Cape 1 177 000 59 372 Bowman Gilfillan 29 957 7 437 111 Wembley Office Park Western Cape 808 900 33 626 Santam 22 162 3 716 319 Boulevard Office Park Western Cape 774 100 31 816 Nedbank 20 337 3 935 391 Rosebank Link Gauteng 718 155 22 277 Amazon Development Centre (SA) 20 130 3 645 066 90 Grayston Drive Gauteng 559 300 19 894 Murray & Roberts 19 309 2 073 108 Riverside Office Park Gauteng 555 492 27 284 Medscheme Holdings 14 397 2 379 903 Total top 10 office properties 12 322 039 425 568 Total top 10 office tenants 378 806 66 466 062 Balance of portfolio 13 076 841 823 933 Balance of portfolio 870 695 108 829 621 Total portfolio 25 398 882 1 249 501 Total portfolio 1 249 501 175 295 683 % of total office portfolio 48.5% 34.1% % of total office portfolio 30.3% 37.9%

Local top 10 office properties

S u p p l e m e n t a r y i n f o r m a t i o n

80

Redefine group results for the year ended 31 August 2019

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

Pepkor Isando Western Cape 890 700 107 017 Macsteel 552 641 26 559 637 Robor Gauteng 775 200 120 277 Pepkor 165 099 10 816 107 Macsteel Lilianton Boksburg Gauteng 676 100 73 071 Robor 120 277 4 816 434 Hirt & Carter Cornubia Gauteng 591 900 47 718 Hirt and Carter (SA) 47 718 4 262 183 Macsteel Coil Processing Wadeville North West 402 900 52 886 Isuzu Motors (SA) 38 515 2 077 685 Macsteel VRN Roodekop Gauteng 386 300 57 645 Kintetsu World Express (SA) 35 358 1 975 071 Cato Ridge DC Gauteng 360 000 50 317 Massmart 32 355 2 270 781 Macsteel Tube & Pipe Usufruct Gauteng 358 500 68 822 Shoprite 30 148 1 679 352 Macsteel Trading Germiston South Free State 328 700 56 495 Coricraft Group 24 253 1 092 715 Wingfield Park Gauteng 286 500 56 486 Ciba Packaging 23 803 1 861 606 Total top industrial properties 5 056 800 690 734 Total top 10 industrial tenants 1 070 167 57 411 571 Balance of portfolio 8 706 783 1 125 330 Balance of portfolio 745 897 41 903 507 Total portfolio 13 763 583 1 816 064 Total portfolio GLA 1 816 064 99 315 078 % of total industrial portfolio 36.7% 38.0% % of total industrial portfolio 58.9% 57.8%

Local top 10 industrial properties

S u p p l e m e n t a r y i n f o r m a t i o n

81

Redefine group results for the year ended 31 August 2019

Property Region Value (R000)

S & J Industrial (90% share) Gauteng 806 931 Brackengate 2 Mainland Western Cape 298 433 Galleria (90% share) Gauteng 217 232 Atlantic Hills (55% share) Western Cape 163 649 Cornubia Ptn 18 KwaZulu-Natal 52 402 Boulevard Annex-CPT Western Cape 39 728 Loftus Park Hotel (25% share) Gauteng 32 677 Centurion Junction (25% share) Gauteng 26 950 Masingita Mall (40% share) Gauteng 24 103 Wonderboom Junction Phase 2 Gauteng 24 047 Total undeveloped land 1 686 152 Balance of portfolio

• Total portfolio

1 686 152 % of total undeveloped land 100.0%

Local undeveloped land

S u p p l e m e n t a r y i n f o r m a t i o n

82

Redefine group results for the year ended 31 August 2019

Property Region Value (R000) GLA m²

Bedford Gardens Hospital Gauteng 349 800 12 817 Southern Sun O.R Tambo International Airport Gauteng 35 940 14 153 Total top specialised properties 385 740 26 970 Balance of portfolio 2 898 759 2 815 Total portfolio 3 284 499 29 785 % of total specialised portfolio 11.7% 90.5%

Local specialised properties

S u p p l e m e n t a r y i n f o r m a t i o n

83

Redefine group results for the year ended 31 August 2019

Property Region Value (R000) GLA Beds

Hatfield Square Gauteng 855 008 2 815 2 331 Peasons and Princeton House Gauteng 587 234

• 1 846

Saratoga Village Gauteng 254 880

• 1 078

Roscommon House Western Cape 240 933

• 582

West City Gauteng 143 112

• 1 134

Lincoln House Free State 113 270

• 469

Yale Village Gauteng 106 031

• 330

Urban Nest Gauteng 62 742

• 300

The Fields Gauteng 59 063

• 308

55 Empire Road* Gauteng 35 807

• Paton House*

KwaZulu-Natal 12 667

• 2 470 747

2 815 8 378

Local student accommodation

As at 31 August 2019, the student accommodation portfolio had an average occupancy of 83.7% (FY18: 91.7%) * Held for future development

S u p p l e m e n t a r y i n f o r m a t i o n

84

Redefine group results for the year ended 31 August 2019

Disposals – Investment property

* 25% of the Loftus Hotel was disposed after development before operations commenced ** Land sales do not have GLA or yields

Property Province Date

• f transfer

GLA (m²) Proceeds (R000) Yield (%)

Retail 31 153 283 816 8.9% China Town Ottery Western Cape 23-Oct-18 8 227 85 706 9.3% Standerton Centre Mpumalanga 10-Dec-18 6 573 51 333 10.8% Riverhorse Valley KwaZulu-Natal 04-Jul-19 12 490 137 077 8.4% Southern Motors Gauteng 10-Jul-19 3 863 9 700 2.5% Office 105 834 613 483 7.5% Jewel City Gauteng 14-Nov-18 42 531 178 000 10.1% Allhart Office Park Gauteng 07-Dec-18 4 668 30 000 7.9% The Ambridge Gauteng 28-Feb-19 4 949 44 145 10.0% Fedsure Forum Gauteng 08-Apr-19 28 721 197 737 0.9% Delmat House KwaZulu-Natal 17-May-19 4 187 33 309 17.0% Kent House KwaZulu-Natal 17-May-19 2 774 23 261 16.9% The Ridge KwaZulu-Natal 17-May-19 1 013 9 062 11.9% Odyssey Place KwaZulu-Natal 17-May-19 2 100 18 193 13.4% BDO House KwaZulu-Natal 17-May-19 2 214 20 214 11.5% Sevenfold KwaZulu-Natal 17-May-19 670 6 064 13.6% Surrey Place Gauteng 26-Aug-19 12 007 53 498 6.5% Industrial 23 089 147 381 9.3% 26 - 28 Christian Avenue Western Cape 15-Mar-19 13 727 75 844 9.2% Platinum Park Western Cape 28-Jun-19 9 362 71 537 9.3% Specialised

• 45 459

Loftus Hotel* Gauteng 30-Nov-18

• 45 459
• Industrial land
• 58 752

Cornubia - Portion 22 of Erf 28** KwaZulu Natal 08-Jan-19

• 24 372
• Cornubia - Portion 17 of Erf 28**

KwaZulu Natal 09-May-19

• 34 380
• UK townhouses
• 27 246

Grand total 160 076 1 176 137 8.2% S u p p l e m e n t a r y i n f o r m a t i o n

85

Redefine group results for the year ended 31 August 2019

Disposals - Held for trading

Property Province Date

• f transfer

Proceeds (R000)

Specialised 114 260 Park Central Gauteng Various 114 260 Industrial land 132 554 Stikland Western Cape Various 26 525 Atlantic Hills (55%) Western Cape 03-Jan-19 48 216 Brackengate - Amazon Western Cape 30-Aug-19 57 813 Grand total 246 814 S u p p l e m e n t a r y i n f o r m a t i o n

86

Redefine group results for the year ended 31 August 2019

Acquisitions

Property Province Sector Date

• f transfer

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

Industrial 17 215 135 866 9.7% Torre Modderfontein Gauteng Industrial 16-Nov-18 9 381 80 000 9.9% JD Rosslyn (50%)** Gauteng Industrial 05-Feb-19 7 834 50 000 9.5% Atlantic Hills – Land (55%)* Western Cape Industrial 21-May-19

• 5 866
• Student accommodation

33 000 55 Empire Road* Gauteng Specialised 06-Dec-18

• 33 000
• International

434 694 Bielsko Land* Poland Industrial 23-Oct-18

• 120 671
• Lublin Land*

Poland Industrial 04-Jan-19

• 38 069
• Warsaw Land*

Poland Industrial 21-Mar-19

• 136 675
• Opole Land*

Poland Industrial 30-Jul-19

• 66 644
• Gdansk Land*

Poland Industrial 31-Jul-19

• 72 635
• Grand total

17 215 603 560

* Held for future development ** Also known as 14 Piet Rautenbach Street

S u p p l e m e n t a r y i n f o r m a t i o n

87

Redefine group results for the year ended 31 August 2019

Non-current assets held for sale

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

Retail 35 986 435 204 10.1% Ermelo Mall Other Retail 19 501 247 690 9.8% Alberton Mall Gauteng Retail 16 485 187 514 10.5% Office 11 082 90 000 22 Fredman Drive Gauteng Office 11 082 90 000

• Land*

107 195 Wilgespruit Land Gauteng Land

• 6 000
• S & J Land

Gauteng Land

• 48 195
• Centurion Land

Gauteng Land

• 11 000
• Kyalami Ridge Land

Gauteng Land

• 42 000
• UK townhouses

13 062 Oando Wings – Investment in associate and loan receivable 436 198 Grand total 47 068 1 081 659 8.4%

* Land sales do not have GLA or yields

S u p p l e m e n t a r y i n f o r m a t i o n

88

Redefine group results for the year ended 31 August 2019

Local new developments completed

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

Retail 28 837 415 529 9.1% Park Meadows Builders Express Gauteng 3 100 31 682 11.4% Sep-18 Centurion Lifestyle Walk - Decathlon & Stodels Gauteng 6 162 85 624 10.8% Dec-18 Leroy Merlin - Little Falls Gauteng 19 575 298 223 8.3% Mar-19 Office 33 752 1 299 001 8.4% 2 Pybus Gauteng 13 588 475 519 8.0% Dec-18 Rosebank Link Gauteng 20 164 823 482 8.7% Oct-18 Industrial 31 549 236 507 9.2% Brackengate Planet Fitness (50.1%) Western Cape 6 289 29 159 11.0% Nov-18 Hirt & Carter KwaZulu-Natal 17 153 164 776 8.5% Feb-19 Brackengate Brights (50.1%) Western Cape 8 107 42 572 10.7% May-19 Specialised 14 949 472 413 9.2% Park Central Gauteng 14 949 472 413 9.2% May-19 Grand total 109 087 2 423 450 8.8%

Province Number

• f beds

Development cost (R000) Initial yield (%) Completion date

Student accommodation 231 682 Roscommon House Western Cape 582 231 682 10.0% Mar-19 S u p p l e m e n t a r y i n f o r m a t i o n

89

Redefine group results for the year ended 31 August 2019

Current new developments in progress

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

Industrial 70 881 342 793 9.3% 273 744 Brackengate MassMart (50.1%) Western Cape 52 313 216 144 9.3% Oct-20 212 189 S & J - Spec Jupiter (90%) Gauteng 18 568 126 649 9.3% Sep-19 61 555 Grand total 70 881 342 793 9.3% 273 744 S u p p l e m e n t a r y i n f o r m a t i o n

90

Redefine group results for the year ended 31 August 2019

Local redevelopments

Redevelopments completed Province Redevelopment cost (R000) Initial yield (%) Completion date

Retail Centurion Mall (Phase 3 and 4) Gauteng 543 833 5.8% Jul-19 Grand total 543 833 5.8%

Redevelopments in progress Province Projected redevelopment cost (R000) Budgeted yield (%) Projected completion date Still to spend (R000)

Retail 8 767 12.9 8 522 Sammy Marks Gauteng 8 767 12.9 Feb-20 8 522 Office 653 607 6.5 141 025 155 West Gauteng 614 092 6.5 Oct-19 104 600 Knowledge Park Western Cape 39 515

• Dec-19

36 425 Grand total 662 374 6.6 149 547 S u p p l e m e n t a r y i n f o r m a t i o n

91

Redefine group results for the year ended 31 August 2019

Local new developments/redevelopments

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

Industrial Sparepro S & J (90%) Gauteng 20 651 142 425 9.2% Nov-19

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

Retail Centurion Lifestyle Centre Gauteng 68 146 3.0% Nov-19

Province Number

• f beds

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

Student accommodation Paton House Kwazulu-Natal 538 108 080 10.6% Oct-20

Province Number

• f beds

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

Student accommodation 178 032 10.2% Yale Village - Phase 2 Gauteng 196 53 910 8.9% Aug-20 55 Empire Gauteng 462 124 122 10.7% Nov-19 S u p p l e m e n t a r y i n f o r m a t i o n

92

Redefine group results for the year ended 31 August 2019

Local infrastructure projects

Infrastructure projects completed Province Total development cost (R000) Completion date

Industrial S & J Jupiter (90%) Gauteng 30 991 Nov-18 Retail Matlosana access road Gauteng 57 563 Dec-18 Grand total 88 554

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

Industrial S & J Phase 1 (90%) Gauteng 135 576 Jan-20 35 227 S & J Phase 2 (90%) Gauteng 18 974 Dec-19 4 574 Brackengate (50.1%) Western Cape 309 375 Jun-20 120 004 Atlantic Hills (55%) Western Cape 257 054 Mar-20 91 664 Grand total 720 979 251 469 S u p p l e m e n t a r y i n f o r m a t i o n

93

Redefine group results for the year ended 31 August 2019

International investment strategy

Investment criteria Our focus

Local partner representation and aligned with Redefine’s interests Provide opportunities for scale Liquid real estate market Free flow of currency Sophisticated tax regimes and rules of law Limited to Poland, United Kingdom and Australia Provide ongoing strategic and financial support to our partners in-country Invest directly where there is potential for capital uplift through active asset management Support-listed investments in corporate activities Actively hedge income as and when the rand shows weakness Hedge balance sheet naturally through matching currency gearing Responsibly manage geographic concentration risk In process of exiting

S u p p l e m e n t a r y i n f o r m a t i o n

94

Redefine group results for the year ended 31 August 2019

International portfolio

Market

→ The UK commercial market continues to experience shocks and headwinds → Demand for student accommodation in Melbourne massively outstrips supply → Continued growth in consumer spending in Poland sustains retail sales growth

Activity

→ Leicester street occupancy at 97% for second semester → Value uplift post development of Leicester street amounts to AUD53 million

European Logistics Platform activity and priorities covered separately Refer to RDI and EPP results presentations for activity Priorities

→ Provide ongoing strategic and financial support to our local partners → Options to stem value destruction by RDI being explored → Complete Swanston street development for second semester 2020 → Bring equity investor on board to expand logistics platform in Poland → Realise capital uplift on student accommodation → Free up Cromwell units that are trading at all-time high

S u p p l e m e n t a r y i n f o r m a t i o n

95

Redefine group results for the year ended 31 August 2019

European Logistics Platform

Market

→ Poland’s strategic location in central Europe, supply chain reconfiguration, e-commerce and an expanding manufacturing

sector poses opportunities for logistics Activity

→ Completed developments → Strykow → Bielsko Brala Phase I → Lubin II Phase I → Developments in progress → Warsaw Phase I and II → Opole Phase I → Land acquired for development Gdansk, Torun and Ruda Slaska

Priorities

→ Tenant retention → Filling vacancies on new developments → Replacing the vacating tenant at Lodz III → Increasing weighted average lease expiry profile → Improving portfolio quality through new developments → Completing the developments in progress → Increasing weighting of the portfolio in primary logistics nodes

S u p p l e m e n t a r y i n f o r m a t i o n

96

Redefine group results for the year ended 31 August 2019

European Logistics Platform development activity

New projects Land holdings

→ 22.2ha of land in Gdansk, located in northern Poland on the Baltic coast on which 71 440m² of GLA can be developed

in phases

→ 11.8ha of land in Ruda Slaska, located in the Upper Silesia region, for the development of 57 562m² of GLA, also in

phases

→ 4.1ha of land in Torun of GLA of 16 495m²

Transfer of ownership on all land parcels have occurred, with the commencement of the developments subject to the finalisation of development rights, the installation of infrastructure and the meeting of pre-letting requirements Project Warsaw – Phase 1 Warsaw – Phase 2 Opole – Phase 1

Number of phases 1 1 2 GLA under construction 48 744m2 24 790m2 24 327m2 Estimated project cost EUR31.5 million EUR14.5 million EUR17.9 million Stabilised yield* 6.54% 6.83% 6.78% Anticipated capital uplift EUR2.3 million EUR2.7 million EUR1.5 million Pre-let % 86% 55% 33% Estimated completion date Q3 2020 Q4 2019 Q4 2020

* Net of all project fees

S u p p l e m e n t a r y i n f o r m a t i o n

97

Redefine group results for the year ended 31 August 2019

International new developments

Completed during the year

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

Industrial Stykow Poland 77 659 37.5 609.3 6.3% Bielsko-Biała Phase I Poland 27 701 15.1 245.3 6.1% Lublin Phase I Poland 25 273 22.6 367.2 7.6% Grand total 130 633 75.2 1 221.8 6.7%

Country Number of beds Development cost (AUD’m) Development cost (Rm) Initial yield (%) Student accommodation

Leicester Street Australia 804 130 1 332.5 9.5%

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 48 744 31.5 532.8 6.5% Sep-20 14.0 236.8 Warszawa Phase II Poland 24 790 14.5 245.3 6.8% Oct-19 4.2 71.0 Opole Phase I Poland 24 327 17.9 302.8 6.7% Oct-20 22.3 377.2 Grand total 97 861 63.9 1 080.9 6.7% 40.5 685.0

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 1 131.4 9.2% Jun-20 43 442.3

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

Toruń Building B Poland 16 920 11.6 196.2 6.6% Feb-20 11.6 196.2 S u p p l e m e n t a r y i n f o r m a t i o n

98

Redefine group results for the year ended 31 August 2019

Redefine’s interests

→

RDI REIT PLC 29.4% Platform profile

→

43% exposure to retail, 21% to offices, 23% to hotels and 13% to industrial assets Carrying value

→

R2.8 billion See through value of assets

→

R7.2 billion See through LTV

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109.5% Redefine activity in first half of 2019

→

Redefine has been working closely with RDI to evaluate all options to maximise shareholder value

→

Exchangeable bond - 22% (EUR32.8 million) of the exchangeable bondholders have elected to put their bonds back to us in September – we were very surprised by the low take up

→

This leaves EUR117.2 million outstanding to the maturity date of 16 September 2021 Redefine’s strategy

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Options under consideration for Redefine to realise its stated objective of recovering value that has been destroyed

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

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RDI REIT is no longer a core asset

→

Funding arrangements to be put in place to allow for EUR117.2 million exchangeable bond early redemption

United Kingdom

S u p p l e m e n t a r y i n f o r m a t i o n

99

Redefine group results for the year ended 31 August 2019

Redefine’s interests

→

Cromwell 2.3%

→

Journal 90% Platform profile

→

20% exposure to offices, 2% to industrial assets and 78% to student accommodation Carrying value

→

R3.7 billion See through value of assets

→

R2.9 billion See through LTV

→

29.8% Redefine activity in first half of 2019 Journal

→

Provided financial support to Journal including advancing a shareholder loan of AUD24 million to fund the development of Central

→

The sale process of Journal has been actioned with JLL appointed to assist with the process. The process will be launched at the end of October Redefine’s strategy

→

Establish Uni Place as the premier student accommodation facility in Melbourne

→

Central development to be completed by mid-2020 in time for the second semester

→

Two significant PBSA portfolio disposals in progress are setting new benchmarks on yield expectations and attracting high investor demand

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Excellent prospects for capital uplift on student accommodation (current prime grade yields for student accommodation are at 5 to 5.5%, we are developing at circa 9.5%)

→

Disposal of Journal would release remaining Cromwell units for disposal

Australia

S u p p l e m e n t a r y i n f o r m a t i o n

100

Redefine group results for the year ended 31 August 2019

Redefine’s interests

→

EPP 45.4%

→

European Logistics Platform 95%

→

Chariot Top Group 25% Platform profile

→

47% exposure to retail, 16% to office and 37% logistics assets Carrying value

→

R15.7 billion See through value of assets

→

R29.0 billion See through LTV

→

89.4% Redefine activity in first half of 2019 EPP

→

During April, Redefine acquired a further 44.3 million EPP shares from Pimco / Oaktree for a consideration of EUR64.9 million as part of the Chariot Put arrangement

→

Ahead of EPP’s AGM in June, Redefine and EPP entered into a voting limitation deed to limit its voting rights exercised at general meetings to no more than 40% of the aggregate votes exercised, to ensure that Redefine, as a minority shareholder, does not exercise legal or factual control of EPP European Logistics Platform

→

Covered separately Redefine’s strategy

→

Support EPP in recycling assets at upper end of cycle rather than raising capital at high yields

→

Grow logistics platform through development pipeline

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Focus on leasing to extend logistics standing portfolio WALT of 4.5 years

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Improve logistics platform occupancy – currently 89% including two recent developments

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To support funding of the expansion of European Logistics Platform, an equity partner will acquire half of Redefine’s interest – process well advanced

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Chariot is expected to unwind by the end of 2020

Poland

S u p p l e m e n t a r y i n f o r m a t i o n