ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2014 AGENDA - - PowerPoint PPT Presentation

ANNUAL RESULTS PRESENTATION

FOR THE YEAR ENDED 30 JUNE 2014

SPACE TO THRIVE

AGENDA

ABSA CAPITAL, Gauteng

1 2 3 4 5 6 7 INTRODUCTION & HIGHLIGHTS FINANCIAL REVIEW CAPITAL MANAGEMENT OPERATIONAL OVERVIEW PROPERTY INVESTMENT ACTIVITIES PROSPECTS ANNEXURES

ABSA CAPITAL, Gauteng

V&A WATERFRONT, Western Cape

INTRODUCTION & HIGHLIGHTS

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INTRODUCTION & HIGHLIGHTS

INTRODUCTION TO GROWTHPOINT

• The largest listed REIT on the JSE with property assets valued at R76,2 bn, including 100%
• f Growthpoint Properties Australia (GOZ) and 50% of the V&A Waterfront in Cape Town
• Listed investments in Acucap and Sycom of R4,5 bn
• Market capitalisation of R56,5 bn at 30 June 2014 (R24.73 per share)
• Diversified property portfolio comprising 436 properties in RSA, 51 properties in Australia

which are 64.0% owned, and a 50.0% interest in the properties of the V&A Waterfront

• Fully integrated internally managed property company employing 528 staff

Retail

R15,8 bn

Office

R24,3 bn

Industrial

R9,3 bn

Australia

R20,9 bn AUD2,1 bn

V&A Waterfront

R5,9 bn

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INTRODUCTION & HIGHLIGHTS

HIGHLIGHTS FOR THE YEAR UNDER REVIEW

Distribution per share

161,3 cents 8.3% growth

Average annual growth in distributions over last 5 years

7.1%

R1,9 bn additional investment in GOZ Total cost

R5,3 bn

Market value

R8,4 bn

25.0% return on R5,3 bn GOZ investment for the year Income yield

12.7%

Capital growth

12.3%

New equity raised via Distribution Re-Investment Plan

R2,0 bn 66.6%

participation Acquisition and integration of Tiber portfolio

R5,7 bn R2,1 bn

equity raised Acquisition and integration of Abseq portfolio

R1,3 bn R369 m

equity raised Investment in Acucap Properties Limited Cost

R3,3 bn

Shareholding

34.9%

Investment in Sycom Property Fund Cost

R1,2 bn

Shareholding

23.2%

Investment Analysts’ Awards Third consecutive year

winner

for best reporting and communication in sector Overall

winner

for best reporting and communication

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INTRODUCTION & HIGHLIGHTS

GROWTH IN DISTRIBUTION PER UNIT/SHARE

59,1 63,9 67,8 72,7 78,5 62,1 67,1 71,2 76,3 82,8 121,2 131,0 139,0 149,0 161,3 30 60 90 120 150 180 FY10 FY11 FY12 FY13 FY14 Cents Interim distribution Final distribution Growth 8.1% 8.1% 8.1% Growth 6.1% 6.1% 6.1% Growth 7.2% 7.2% 7.2% Growth 8.3% 8.5% 8.0%

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INTRODUCTION & HIGHLIGHTS

GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION

300 600 900 1200 1500 1800 2100 2400 2700 10 20 30 40 50 60 70 80 90 HY10 FY10 HY11 FY11 HY12 FY12 HY13 FY13 HY14 FY14 Cents Rbn Market cap (Rbn) Tangible assets (Rbn) NTAV per unit/share (cents) Unit/share price (cents)

EAST 20 KRAMERVILLE, Gauteng

FINANCIAL REVIEW

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FINANCIAL REVIEW

CONTRIBUTION TO DISTRIBUTABLE INCOME

2 652 2 022 1 820 513 394 282 332 312 293 3 497 2 728 2 395 600 1 200 1 800 2 400 3 000 3 600 FY14 FY13 FY12 Rm RSA GOZ V&A 12.2% 11.8% 76.0% 11.4% 14.4% 74.2% 9.5% 14.7% 75.8% Growth 28.2% Growth 13.9%

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FINANCIAL REVIEW

WEALTH CREATED AND DISTRIBUTION TO STAKEHOLDERS

418 353 279 3 497 2 728 2 395 293 248 182 1 802 1 820 1 710 602 469 363 40 35 6 652 5 653 4 929 1 000 2 000 3 000 4 000 5 000 6 000 7 000 FY14 FY13 FY12 Rm Employees Shareholders/linked unit holders Minority interest holders Providers of debt Governments - direct taxes Reinvested in the Group

5.6% 48.6% 3.7% 34.7% 7.4%

Growth 17.7% Growth 14.7%

• Wealth created based on a look-through principle and therefore includes RSA, GOZ and V&A Waterfront

6.3% 52.6% 4.4% 27.1% 9.1% 0.6% 6.2% 48.3% 4.4% 32.2% 8.3% 0.6%

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FINANCIAL REVIEW

CONSOLIDATED DISTRIBUTION CALCULATION

• 1. Includes R110 m relating to cash adjustments on business acquisitions, R165 m included for the

distribution received on listed investments, and R25 m of dividends received on treasury shares held * Average exchange rate at R9.53/AUD (FY13: R9.07/AUD) for GOZ ** The distribution calculation includes the results of the equity-accounted investments acquired from Tiber on a see-through principle (refer Annexure 35)

FY14 Rm FY13 Rm Increase/ (decrease) Gross property income 6 422 5 773 11.2% RSA 4 805 4 354 10.4% GOZ 1 617 1 419 14.0% Property expenses (1 386) (1 237) 12.0% RSA (1 190) (1 078) 10.4% GOZ (196) (159) 23.3% Net property income 5 036 4 536 11.0% Other operating expenses (267) (236) 13.1% RSA (182) (175) 4.0% GOZ (85) (61) 39.3% Net property income after operating expenses 4 769 4 300 10.9% Finance costs (1 752) (1 782) (1.7%) RSA (1 285) (1 272) 1.0% GOZ (467) (510) (8.4%) Finance income 841 511 64.6% Investment income from V&A Waterfront 332 312 6.4% Other finance income¹ 509 199 155.8% Adjustment for NCI, foreign exchange profit and normal taxation (361) (301) 19.9% Distributable profit 3 497 2 728 28.2% Distribution for the year 3 497 2 728 28.2%

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FINANCIAL REVIEW

EXPENSE TO INCOME RATIOS

24.8% 24.8% 24.3% 3.8% 4.0% 3.1% 28.6% 28.8% 27.4% 5 10 15 20 25 30 35 FY14 FY13 FY12 % Operating expense ratio Property expense ratio 12.1% 11.2% 10.4% 5.3% 4.3% 4.7% 17.4% 15.5% 15.1% 5 10 15 20 25 30 35 FY14 FY13 FY12 % Operating expense ratio Property expense ratio 26.6% 26.6% 3.3% 2.9% 29.9% 29.5% 5 10 15 20 25 30 35 FY14 FY13 % Operating expense ratio Property expense ratio

RSA GOZ V&A

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FINANCIAL REVIEW

CONSOLIDATED BALANCE SHEET (EXTRACTS)

• 1. Includes R265 m of properties reclassified as held for sale (FY13: R545 m)
• 2. The property value, as well as nominal borrowings of the equity-accounted investments acquired from Tiber

are included on a see-through principle (refer Annexure 35)

• 3. Closing exchange rate at FY14: R9.96/AUD (FY13: R9.03/AUD)
• 4. Excludes fair value adjustments

FY14 Rm FY13 Rm Increase Property portfolio¹ 70 228 54 231 29.5% RSA² 49 369 39 168 26.0% GOZ³ 20 859 15 063 38.5% 50% investment in V&A Waterfront 5 574 5 444 2.4% Listed investments in Acucap and Sycom 4 457

• Nominal borrowings⁴

25 045 19 571 28.0% RSA² 16 499 12 468 32.3% GOZ³ 8 677 7 103 22.2% Shareholders’/linked unitholders’ interest (NAV) 49 895 36 745 35.8%

DB SCHENKER, Gauteng

CAPITAL MANAGEMENT

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CAPITAL MANAGEMENT

40.6% 46.6% 44.4% [VALUE ]x [VALUE ]x [VALUE ]x 2 4 6 8 10 20 30 40 50 FY14 FY13 FY12 times % LTV¹ Interest cover ratio

LOAN TO VALUE AND INTEREST COVER RATIOS

1. Nominal value of interest-bearing borrowings (net of cash), divided by the fair value of property assets, including investment property held for sale. For RSA and GROUP the 50% equity investment in V&A Waterfront, other equity-accounted investments and listed investments were included in the fair value of property assets

• 2. Calculated in Rands

27.4% 23.9% 33.9% 3.5x [VALUE ]x [VALUE ]x 2 4 6 8 10 20 30 40 50 FY14 FY13 FY12 times % LTV¹ Interest cover ratio (incl V&A) 30.8% 29.6% 36.5% 3.3x [VALUE ]x [VALUE ]x 2 4 6 8 10 20 30 40 50 FY14 FY13 FY12 times % LTV¹ Interest cover ratio

RSA GOZ² GROUP

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CAPITAL MANAGEMENT

8 944 6 358 6 853 1 450 1 400 1 450 1 796 1 300 2 000 3 909 3 010 2 510 400 400 800 16 499 12 468 13 613 3 000 6 000 9 000 12 000 15 000 18 000 FY14 FY13 FY12 Rm Secured bank debt Secured institutional financier Unsecured bank debt Corporate bonds Commercial paper

RSA DIVERSIFIED BORROWINGS – NOMINAL VALUE

Debt capital market 26.1% Traditional bank debt 73.9% Unsecured 37.0% Secured 63.0% Debt capital market 27.4% Traditional bank debt 72.6% Unsecured 37.8% Secured 62.2% Debt capital market 24.3% Traditional bank debt 75.7% Unsecured 39.0% Secured 61.0%

• For detail, refer to Annexure 19

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CAPITAL MANAGEMENT

CAPITAL MANAGEMENT

• The investment activities (acquisitions, developments and capital expenditure) were

financed through a combination of equity and debt: R9,1 bn additional equity and R3,9 bn additional debt was raised

• 16,5 m shares were repurchased in October 2013 when the BEE transaction with Phatsima

Properties was refinanced. 17,0 m shares were repurchased in March 2014 when the BEE transaction with Quick Leap Investments 429 was restructured. Shares were acquired at R21.50

For RSA FY14 FY13 Unutilised committed facilities (R bn) 3,8 3,3 Weighted average term of liabilities (years) 3.5 3.5 Weighted average term of fixed interest rate profile (years) 4.3 4.9 Weighted average interest rate (%) 9.4 9.7 % debt at fixed interest rate 78.4 87.8 Unencumbered assets (incl V&A and listed investments) (R bn) 32,8 20,2 Unsecured debt (R bn) 6,1 4,7

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CAPITAL MANAGEMENT

CAPITAL MANAGEMENT (CONTINUED)

• Growthpoint has R12,9 bn invested in marketable securities (GOZ, ACP and SYC shares),

which is available for use in an unlikely liquidity event

• Moody's maintained Growthpoint's credit ratings, but changed the outlook from stable

to positive

• Treasury policy guidelines reaffirmed by the Board of Directors:

› Growthpoint will ensure that cash flows from operations plus available credit facilities will exceed committed cash outflows and debt maturities over a rolling 12-month period › Growthpoint will maintain the following minimum ratios of fixed interest rate obligations to total debt

Rolling period % fixed 12-months 75% 24-months 65% 36-months 50%

LA LUCIA MALL, KwaZulu-Natal

OPERATIONAL OVERVIEW

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OPERATIONAL OVERVIEW & OPERATING ENVIRONMENT

CONSOLIDATED PORTFOLIO OVERVIEW

67.0% 26.4% 6.6% RSA GOZ V&A Waterfront 64.8% 27.4% 7.8%

Net property income Property portfolio (by value)

THE OVAL NEWLANDS, Western Cape

SOUTH AFRICA

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SOUTH AFRICA

RSA PORTFOLIO OVERVIEW

32.8% 34.7% 33.6% 44.0% 41.3% 42.6% 23.2% 24.0% 23.8% 3 615 3 276 3 099 1 000 2 000 3 000 4 000 FY14 FY13 FY12

Rm

Retail Office Industrial 31.9% 38.1% 37.6% 49.3% 41.4% 41.7% 18.8% 20.5% 20.7% 49 369 39 168 34 988 15 000 30 000 45 000 60 000 FY14 FY13 FY12

Rm

Retail Office Industrial 9.4% 10.9% 11.7% 37.8% 30.5% 32.2% 52.8% 58.6% 56.1% 436 393 403 100 200 300 400 500 FY14 FY13 FY12

Number

Retail Office Industrial

Net property income Number of properties Property portfolio (by value)

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SOUTH AFRICA

NET PROPERTY INCOME ANALYSIS – RSA

FY14 Rm FY13 Rm Increase/ (decrease) Gross property revenue 4 805 4 354 10.4% Retail 1 645 1 576 4.4% Office 2 086 1 776 17.5% Industrial 1 074 1 002 7.2% Property expenses (1 190) (1 078) 10.4% Retail (459) (439) 4.6% Office (496) (423) 17.3% Industrial (235) (216) 8.8% Net property income 3 615 3 276 10.3% Adjustments (585) (436) 34.2% Acquisitions and developments (320) (87) Disposals (24) (115) Investec rent (241) (234) Adjusted “like for like” net property income 3 030 2 840 6.7% Retail 1 169 1 080 8.2% Office 1 082 1 034 4.6%¹ Industrial 779 726 7.3%

• 1. Included in Office “like for like” is a property that was vacant for 5 months during FY14. Subsequent to year end an

agreement was signed to sell this property. If this property is excluded, the “like for like” growth will be 6.4%

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SOUTH AFRICA

KEY PERFORMANCE INDICATORS - RSA

FY14 FY13 Vacancies (%) 4.9 4.4 Total arrears (Rm) 34,7 29,9 Provision for bad debts (B/S) (Rm) 14,1 14,6 Bad debts (I/S) (Rm) 6,6 10,9 Average in force escalations (%) 8.1 8.0 Renewal success rate (%) 65.7 70.4 Weighted average renewal growth (%) 3.0 4.2 Weighted average future escalations on renewals (%) 8.3 8.6 Number of employees 528 457 Net property income per employee (R)¹ 6 846 591 7 168 490

• 1. The net property income per employee when recalculated on the average number of employees is R7 484 472

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SOUTH AFRICA

RSA - RETAIL

• IPD award for highest annual total return for a

retail portfolio over past three years,

• utperforming IPD benchmark by over 3%
• Trading at shopping centre level reflects the

deteriorating consumer environment with turnover at top 16 centres increasing by 6.5% p.a., excluding Waterfall Mall

• Prolonged strike in Platinum sector resulted in

7.8% decline in turnovers at Waterfall Mall,

• Rustenburg. However, average trading density

remains above R2 400/m² per month

• Portfolio value increased 5.6% and net property

income by 4.3%; both impacted negatively by disposal of R386 m non-core properties

• Office and storage vacancies within shopping

centres represent 27% (1.2%) of overall vacancy

• factor. Lettable retail GLA vacancy across

portfolio is at 2.5%

• Total retail portfolio arrears was up 6% on

FY13, but as a percentage of collections, remained the same year on year at 9%. Trading arrears are at 3.6% of collections while legal arrears are fully provided for

• The portfolio historical renewal success rate of

80%+ has declined to 75.6% mainly due to the non-renewal of Nu-metro leases of 7 000 m² during FY14 Size of portfolio FY14 Rm FY13 Rm Net property income 1 186 1 137 Portfolio value 15 756 14 915 Vacancy % % Total portfolio 4.5 3.7 Arrears Rm Rm Total portfolio 19,3 18,2 Bad debt provision (B/S) 8,3 8,8 Renewals % % Renewal success rate 75.6 80.5 Weighted average renewal growth 6.9 6.1

• Redevelopments and extensions at Brooklyn Mall, Kolonnade,

Northgate and Walmer Park were completed on time and at better yields than originally budgeted

• Growthpoint’s retail portfolio remains relatively insulated from

negative macro consumer dynamics, given the overweight exposure to the higher income market segment

• Partnering with Internet Solutions to transform our shopping centres

into “smart malls” and installed an open access fibre optic network within 17 of our shopping centres, which offers improved connectivity to our tenants and free internet access to our shoppers

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SOUTH AFRICA

RSA - OFFICE

• Net property income has increased by 17.5% and

includes results of Abseq properties for 6 months and Tiber properties for 4 months totalling R198 m

• Portfolio value increased by 50% after the inclusion
• f the Abseq and Tiber properties valued at

R7,0 bn

• Market conditions remained challenging and

vacancies have increased marginally from 7.8% to 8.0%. Vacancies well below the national office vacancy for Q2 2014 of 11.3%

• Letting of 258 000 m² in the year, 143 000 m² of

space was renewed and 115 000 m² of new space

• let. Renewal success rate has dropped, reflecting

the tough market conditions

• Arrears have increased due to the portfolio size

increasing but are well contained at 3.5% of collectibles

• Five developments underway which will create GLA
• f 78 687 m² at a development cost of R2,3 billion
• Focus will be on tenant retention, cost control,
• ptimising and improving the performance of newly

acquired properties and ensuring their effective integration into the overall office portfolio Size of portfolio FY14 Rm FY13 Rm Net property income 1 590 1 353 Portfolio value 24 327 16 211 Vacancy % % Total portfolio 8.0 7.8 Arrears Rm Rm Total portfolio 10,5 5,9 Bad debt provision (B/S) 4,1 3,2 Renewals % % Renewal success rate 63.0 66.2 Weighted average renewal growth 1.6 3.6

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SOUTH AFRICA

RSA - INDUSTRIAL

Trading environment

• Challenging year considering the labour unrest,

input cost increases, impact of utilities, e-tolls and volatile exchange rate

• Significant increase in supply, specifically big

box, generic warehousing

• Emergence of new industrial nodes at below

market rentals to stimulate activity

• Acquisition growth is limited due to scarcity
• f quality and low cap rates

Property portfolio

• Sound performance given trading environment
• Focus on basics – arrears, vacancies, lease

periods, escalations and tenant retention

• Strategic land acquisitions
• Development capability is a core requirement

Strategy

• Keep doing the basics right
• Focus on core portfolio for value extraction
• “Convert the dirt” strategy is to remain a key

area of focus Size of portfolio FY14 Rm FY13 Rm Net property income 839 786 Portfolio value 9 286 8 042 Vacancy % % Total portfolio 3.0 3.0 Arrears Rm Rm Total portfolio 4,9 5,8 Bad debt provision (B/S) 1,7 2,6 Renewals % % Renewal success rate 63.7 69.0 Weighted average renewal growth 0.6 3.6

33 RICHMOND ROAD, Australia

AUSTRALIA - GOZ

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AUSTRALIA - GOZ

31.4% 34.1% 34.1% 68.6% 65.9% 65.9% 51 44 41 15 30 45 60 FY14 FY13 FY12

Number

Office Industrial 50.1% 47.8% 46.9% 49.9% 52.2% 53.1% 20 859 15 063 13 118 6 000 12 000 18 000 24 000 FY14 FY13 FY12

Rm

Office Industrial

GOZ PORTFOLIO OVERVIEW

47.4% 48.8% 35.0% 52.6% 51.2% 65.0% 1 421 1 260 906 400 800 1 200 1 600 FY14 FY13 FY12

Rm

Office Industrial

Net property income Number of properties Property portfolio (by value)

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AUSTRALIA - GOZ

KEY PERFORMANCE INDICATORS - GOZ

FY14 FY13 Vacancies (%) 1.5 0.4 Total arrears (Rm) 6,9 0,5 Provision for bad debts (B/S) (Rm) 1,0

• Bad debts (I/S) (Rm)

0,2

• Average in force escalations (%)

3.1 3.1 Renewal success rate (%) 76.0

• Weighted average renewal growth (%)

2.7

• Weighted average future escalations on renewals (%)

3.5

• Number of employees

12 11 Net property income per employee (R) 118 416 667 114 545 455

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AUSTRALIA - GOZ

OPERATIONAL REVIEW - GOZ

Growing income • 19.00 DPU for FY14 (up 3.8% on FY13)

• Annualised DPU yield of 7.8%, based on FY14 closing price of AUD2.45

Growing portfolio

• AUD352,9 million of property acquisitions during FY14

Excellent property fundamentals

• Quality tenants, diversified across office and industrial sectors, located in every

Australian state and the ACT

• 6.9 years WALE, 1.5% vacancy and limited lease expiry risk in the short term

Prudent capital management

• LTV of 40.6% at FY14
• 82% debt hedged at FY14 with an average maturity of 3.0 years
• Weighted average debt maturity of 3.1 years at FY14
• Moody’s senior secured debt rating of Baa 2, with a stable outlook

Strong support

• Investors (particularly GRT) continue to support growth, including via DRIP

High total return • 10.8% total security holder return for FY14 in AUD

V&A WATERFRONT, Western Cape

V&A WATERFRONT

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V&A WATERFRONT

54.5% 53.3% 23.6% 24.4% 9.8% 10.1% 12.1% 12.2% 356 328 100 200 300 400 FY14 FY13

Rm

Retail Office Fishing & Industrial Hotel & Residential

V&A PORTFOLIO OVERVIEW (50%)

Net property income Property portfolio (by value)

54.8% 55.3% 18.7% 18.3% 6.6% 6.7% 11.5% 9.0% 8.4% 10.7% 5 947 5 549 1 000 2 000 3 000 4 000 5 000 6 000 7 000 FY14 FY13

Rm

Retail Office Fishing & Industrial Hotel & Residential Bulk

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V&A WATERFRONT

KEY PERFORMANCE INDICATORS – V&A (50%)

FY14 FY13 Vacancies (%) 1.5 0.6 Total arrears (Rm) 25,0 25,8 Provision for bad debts (B/S) (Rm) 6,2 10,1 Bad debts (I/S) (Rm) (2,0) 1,0 Average in force escalations (%) 7.8 8.4 Renewal success rate (%) 89.1 88.6 Weighted average renewal growth (%) 4.9 7.5 Weighted average future escalations on renewals (%) 7.0 7.5 Number of employees (100%) 178 177 Net property income per employee (R) (100%) 4 000 000 3 706 215

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V&A WATERFRONT

OPERATIONAL REVIEW – V&A

• Retail

› Consistently strong retail sales performance with year on year growth to June 2014 up 21.5% for rolling 12 month period and trading densities up 19.2% › Total retail vacancy only 1.7% with Victoria Wharf fully let › Additional 8 000 m² retail space created with relocation of Pick n Pay to create flagship store and creation of Cross Mall all fully let › New lettings to Cotton On, Mr Price, Tashas, Witchery, Mimco, Tiger of Sweden and Mondiall enhancing retail offering. New stores in the pipeline include Pylones, Longamps, Calvin Klein and Jigsaw › V&A Waterfront again received the award for the highest number of visitors in a day › V&A Waterfront regained the Times Sowetan Retail Award as the top Shopping Centre in the Western Cape 2014

• Commercial

› BP and Allan Gray office tenants successfully renewed and overall renewals for FY14 were a healthy 89% › Refurbishment of former Allan Gray building in Granger Bay almost fully let securing new blue chip tenants including Total Gas and Red Bull together with EOH increasing their footprint › Overall office vacancy contained at 2.9%, well below the national office vacancy for Q2 2014

• f 11.3%

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V&A WATERFRONT

OPERATIONAL REVIEW - V&A (CONTINUED)

• Hotel

› Hotel statistics have shown overall growth on FY13’s performance, indicating that the turnaround for the industry remains positive

• Fishing and Industrial

› The portfolio remains stable with no vacancies › The Volvo Ocean race will once again be hosted by the V&A Waterfront in November 2014 › A tender for a Cruise Liner terminal was submitted to TNPA for the operation and management

• f the terminal. The long term rental of an additional 24 676 m² of industrial space
• Residential

› Conversion of former Alan Gray offices on Portswood Ridge into 114 residential units for let to private tenants on leases of 12 months. A new income stream for the V&A aimed at encouraging more people to live work and play in the V&A. This development is proving popular with

• ver 70% of the first block having been let

› No 2 Silo residential, all but one of the 31 units built have been sold › No 2 Silo achieved the highest Green Star rating, 4 stars for a residential development and received the 2014 SAPOA Best Residential Development › 151 residential units for let scheduled for completion at end of year above the Breakwater parking garage

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V&A WATERFRONT

OPERATIONAL REVIEW - V&A (CONTINUED)

• Development update

› Successful completion of a number of development projects including CrossMall, Pick n Pay re- location, Victoria Wharf/Breakwater tunnel adding some 8 000 m² and the flagship No 1 Silo office building comprising some 18 000 m² additional office accommodation for Allan Gray › No 1 Silo has received a number of prestigious industry awards including Green Building Council 6-Star As-Built, a first in South Africa. In addition, #1 Silo was the overall Innovative Excellence winner at the SAPOA 2014 Convention as well as being awarded Best Green Building and Best Commercial Office Development › Commencement of the R46 m extension to the Two Oceans Aquarium which includes a new 6 m-deep predator tank, improved exhibitions and a R26 m new conference venue. Following the completion of the extension, existing tanks will be refurbished, making the Two Oceans Aquarium one of the top aquarium attractions on the continent › Innovative R50 m re-development of the old Blue Shed – now re-named The Watershed – into a dramatic space that will house 150 traders showcasing some 365 of the finest of South African craft and design brands and opens October › Zeitz Museum of Contemporary Art Africa construction under way on this R400 m conversion of the existing Grain Silo Building, which should complete October 2016 › Work continues apace on the remainder of the Silo Precinct. R1,5 bn spend adding a further 35 000 m²

• f mixed use development. It will comprise 75 luxury residential units; a 13 500 m² commercial office

building; a Virgin Health Club; a 200 bed internationally recognised branded business hotel and a further 1 000 parking bays. The entire precinct is expected to be complete by mid-2017 › Planning consent has been requested for a further 15 000 m² extension to the Victoria Wharf Shopping Centre

PROPERTY INVESTMENT ACTIVITIES

5

THE TOWERS, Gauteng (Co-owned with Zenprop)

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PROPERTY INVESTMENT ACTIVITIES

PROPERTY INVESTMENT ACTIVITIES

Annexures Retail Rm Office Rm Industrial Rm RSA total Rm GOZ Rm Total Rm V&A (50%) Rm Opening balance 14 915 16 211 8 042 39 168 15 063 54 231 5 549 Purchase price of acquisitions 3.2, 23 1 284 205 490 3 452 3 942

• Purchase price of Tiber portfolio

3.1 90 5 257 347 5 694

• 5 694
• Purchase price of Abseq portfolio

3.1

• 1 343
• 1 343
• 1 343
• Selling price of disposals

4 (386) (158) (107) (651)

• (651)
• Development and capex

5, 23, 30 270 543 234 1 047 416 1 463 276 Fair value adjustment 866 847 565 2 278 288 2 566 122 Foreign currency translation

• 1 640

1 640

• Total

15 756 24 327 9 286 49 369 20 859 70 228 5 947 Long term property assets 15 597 24 257 9 250 49 104 20 859 69 963 5 947 Reclassified as held for sale 6 159 70 36 265

• 265
• Commitments

7, 30 66 1 962 307 2 335

• 2 335

496

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PROPERTY INVESTMENT ACTIVITIES

NEW ACQUISITIONS AND DEVELOPMENTS

ALICE LANE PRECINCT (OFFICE)

• 50% owned by Growthpoint, 50% owned by Zenprop
• Three properties with a total GLA of 57 261 m² (100%)
• Combined valuation at 30 June 2014 - R1,7 billion (GRT share R841 million)
• The Annex development just completed and 92% let

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PROPERTY INVESTMENT ACTIVITIES

NEW ACQUISITIONS AND DEVELOPMENTS (CONTINUED)

THE BOULEVARD (OFFICE)

• 5 506 m² development in Umhlanga Ridge
• Development value R117,2 million
• Project yield 8.4%
• Expected completion date - 1 February 2016
• 42% let

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PROPERTY INVESTMENT ACTIVITIES

NEW ACQUISITIONS AND DEVELOPMENTS (CONTINUED)

MEADOWBROOK ESTATE

• 2014 SAPOA Overall Winner: Industrial Developments
• First Integrated Office and Warehouse Facility to be

awarded a 5-Star Green SA Office Design Rating

• Consulting Engineers South Africa Commendation

Award (Excellence Awards 2014)

• 9 684 m² hi–tech facility let to Grundfos SA

(African Head Office and Distribution Centre)

• Innovative Design - the facility is the integrated

product showroom

• Includes latest sustainable technologies
• Phase 2 of Meadowbrook Estate under development

WILLOWBRIDGE PLACE, Western Cape

PROSPECTS

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PROSPECTS

PROSPECTS

Risks

• Slow economic growth (GDP <2%)
• Increased competition (new listings and developments)
• Weakening property fundamentals

› Slowdown in retail sales › Zero net new office demand › Cost pressures

• Rising, global and local, longer term bond yields
• Rising short term interest rates in SA
• Higher cost of debt and equity funding

Opportunities

• Focus on tenant retention and letting of vacant space
• P and A grade office, as well as industrial properties, showing resilience
• Exciting development pipeline
• Implement enhancing acquisitions and focus on extracting efficiencies
• Weakening Rand vs AUD
• Exposure to tourism and hotel sector via V&A
• V&A attracting new retail and office tenants (retail showing circa 20% trading density growth)
• Debt and equity capital remains available, albeit more expensive

Distribution outlook

• Due to the challenging, low growth domestic macro-economic environment and rising interest rate cycle

which is currently having a negative impact on consumers and the overall retail environment, as well as demand for rental space across the retail, office and industrial property sectors, the board of Growthpoint is

• f the view that the distribution growth for FY15 will be between 7.0% and 7.5% which is in line with the

average growth rate achieved over the past 5 years

THE ANNEX, Gauteng

ANNEXURES

7

46

ANNEXURES

CONTENTS

• Annexure 1:

Growthpoint’s property portfolio

• Annexure 2:

Split of RSA property portfolio

• Annexure 3.1: Acquisitions Abseq & Tiber
• Annexure 3.2: Acquisitions other RSA
• Annexure 4:

Disposals RSA

• Annexure 5:

Developments and capital expenditure RSA

• Annexure 6:

Non-current assets held for sale RSA

• Annexure 7:

Commitments RSA

• Annexure 8:

Top 10 RSA Retail properties by value

• Annexure 9:

Top 10 RSA Retail tenants

• Annexure 10: Top 10 RSA Office properties by value
• Annexure 11: Top 10 RSA Office tenants
• Annexure 12: Top 10 RSA Industrial properties by value
• Annexure 13: Top 10 RSA Industrial tenants
• Annexure 14: Exposure to ABIL Group
• Annexure 15: GLA and vacancy reconciliation RSA
• Annexure 16: Lease expiry by sector RSA (% of GLA)
• Annexure 17: Lease expiry by sector RSA (% of gross monthly rental)

47

ANNEXURES

CONTENTS

• Annexure 18: Shares issued and shareholders holding >2% at FY14
• Annexure 19: Detailed borrowings - nominal value
• Annexure 20: Debt expiry profile RSA
• Annexure 21: Fixed interest rate expiry profile RSA
• Annexure 22: Split of GOZ property portfolio
• Annexure 23: Acquisitions, developments and other capex GOZ
• Annexure 24: Top 10 GOZ properties by value
• Annexure 25: Top 10 GOZ tenants
• Annexure 26: Net property income analysis GOZ
• Annexure 27: GLA and vacancy reconciliation GOZ
• Annexure 28: Lease expiry by sector GOZ
• Annexure 29: Split of V&A property portfolio
• Annexure 30: Developments and commitments for developments V&A (50%)
• Annexure 31: Top 10 V&A tenants (100%)
• Annexure 32: Distributable income analysis V&A (50%),

“like for like” distributable income growth V&A (50%)

• Annexure 33: GLA and vacancy reconciliation V&A (50%)
• Annexure 34: Lease expiry by sector V&A
• Annexure 35: Equity-Accounted profits and investments

48

ANNEXURES

ANNEXURE 1: GROWTHPOINT’S PROPERTY PORTFOLIO

• 1. V&A is included reflecting Growthpoint’s 50% interest, GOZ is reflected at 100%
• 2. Based on net rental per annum

Retail Office Industrial RSA total GOZ¹ V&A¹ Number of properties 41 165 230 436 51 1 GLA (m²) 907 746 1 460 741 2 194 459 4 562 946 1 036 740 195 700 Vacancy (m²) 40 461 116 842 64 876 222 179 15 786 2 974 Vacancy (%) 4.5 8.0 3.0 4.9 1.5 1.5 Valuation (Rm) 15 756 24 327 9 286 49 369 20 859 5 947 Value per m² (excl bulk) 17 347 16 105 4 119 10 585 20 120 27 828 Average gross rental (per m²/month) (R) 148.6 131.8 42.4 91.2 AUD166² 172.0 Forward yield (%) 8.2 8.3 10.1 8.6 8.2 6.8 Average in force escalations (%) 7.7 8.3 8.3 8.1 3.1 7.8 Weighted average lease period (years): By gross rental 3.8 4.2 2.9 3.8 6.9 8.6 Renewal success rate (%) 75.6 63.0 63.7 65.7 76.0 89.1 Weighted average renewal growth (%) 6.9 1.6 0.6 3.0 2.7 4.9 Weighted average future escalations

• n renewals (%)

7.8 8.5 8.7 8.3 3.5 7.0

49

SOUTH AFRICA

ANNEXURE 2: SPLIT OF RSA PROPERTY PORTFOLIO

32% 49% 19% Retail Office Industrial 20% 32% 48% 57% 17% 10% 9% 3% 3% 1% Greater Jhb Western Cape Pretoria KwaZulu-Natal Eastern Cape North West Other 59% 17% 7% 12% 3% 1% 1%

Value GLA GLA Value

50

SOUTH AFRICA

ANNEXURE 3.1: ABSEQ AND TIBER PORTFOLIOS

• 1. This includes the standalone properties acquired, as well as the 50% of the share block companies

Abseq Rm Tiber¹ Rm Total Property valuation 1 343 5 694 7 037 Net working capital (32) (129) (161) External debt (923) (1 407) (2 330) Net asset value 388 4 158 4 546 Funded by (360) (4 158) (4 518) Issued share capital (369) (2 069) (2 438) Debt/cash utilised

• (2 089)

(2 089) Refunded by cash 9

• 9

Bargain purchase (28)

• (28)

Effective date 1 Jan 2014 1 Mar 2014

51

SOUTH AFRICA

ANNEXURE 3.1: ABSEQ AND TIBER PORTFOLIOS (CONTINUED)

• 1. This includes the standalone properties acquired, as well as the 50% of the share block companies

Abseq Tiber¹ Total Number of properties 17 38 51 100% owned 13 27 40 50% owned Abseq, 50% owned Tiber 4 4 4 50% owned

• 7

7 GLA (m²) 82 818 289 732 372 550 Office 82 818 250 095 332 913 Retail

• 4 335

4 335 Industrial

• 35 302

35 302 Vacancy at 30 June 2014 (%) 8.7 7.3 7.3 Office 8.7 7.1 7.2 Industrial

• 9.4

9.4 Forward yield (%) 8.7 7.7

52

SOUTH AFRICA

ANNEXURE 3.2: ACQUISITIONS OTHER RSA

• 1. Portion bought, consolidated into existing property

Acquisitions Sector Purchase price Rm Yield River Square Centre, Vereeniging¹ Retail 1,4 Land Sandhurst B and C, Sandton¹ Office 205,0 Land Bridge Park, Century City, Cape Town Office 32,7 Land Longkloof Studios, Cape Town¹ Office 24,6 9.6% Ridgeside, Umhlanga Ridge Office 21,6 Land 20 Rustic Close, Westmead Industrial 100,3 8.2% Mill Road Park, Bellville Industrial 38,0 Land Range Industrial Park, Bellville, Cape Town Industrial 26,2 Land Midrand Central Business Park, Midrand¹ Industrial 21,6 Land Wadeville (70%), Germiston Industrial 19,0 Land 490,4

53

SOUTH AFRICA

Disposals Sector Selling price Rm Profit/(loss)

• n cost

Rm Profit/(loss)

• n book value

Rm Yield Gustav Voigts, Windhoek Retail 220,0 14,7 (0,4) 9.8% Bridge Shopping Centre, CBD, Johannesburg Retail 104,0 28,6 0,7 8.4% Centurion Southlake 1 & 2, Centurion Retail 61,9 9,6

• 12.1%

Cowey Park, Durban Office 68,3 15,7 (0,3) 6.9% 140 Daisy Street, Sandton Office 34,4 9,5 0,2 6.4% 81 Central Street, Houghton, Johannesburg Office 23,7 21,2

• 9.8%

St Peters Square, Fourways, Sandton Office 17,4 9,0 2,7 12.4% Worx Zone 2, Umhlanga Ridge, Durban Office 14,0 2,8 2,1 Land Trador, Witbank Industrial 31,0 9,5 0,2 8.6% Kwaford, Port Elizabeth Industrial 29,0 4,4

• 12.5%

Ormonde, Johannesburg Industrial 14,0 (2,4) 2,5 9.7% Vintonia, Nelspruit Industrial 13,0 (0,6) 2,8 15.4% Witdrich, Witbank Industrial 11,3 7,9

• 9.9%

Bison, Pretoria West Industrial 8,8 1,7 0,3 11.9% 650,8 131,6 10,8

ANNEXURE 4: DISPOSALS RSA

54

SOUTH AFRICA

ANNEXURE 5: DEVELOPMENTS AND CAPITAL EXPENDITURE RSA

Sector FY14 Rm Walmer Park Shopping Centre, Walmer Park, Port Elizabeth Retail 69,9 Northgate (50%), North Riding, Johannesburg Retail 44,3 Brooklyn Mall/Design Square (75%), Brooklyn, Pretoria Retail 34,1 Other Retail below R30,0 m Retail 121,5 Discovery Head Office (55%), Sandton Office 106,4 Bridge Park, Milnerton, Cape Town Office 39,1 IBM, Sandurst, Sandton Office 30,0 Other Office below R30,0 m Office 368,1 Other Industrial below R30,0 m Industrial 234,0 Total 1 047,4

55

SOUTH AFRICA

ANNEXURE 6: NON-CURRENT ASSETS HELD FOR SALE RSA

Properties held for sale Sector FY14 Rm Palm Springs, Springs Retail 108,8 Blackheath Rendezvous, Blackheath, Randburg Retail 50,5 The Worx Zone 1, Umhlanga Ridge, Durban Office 15,8 Sandton Place, Wierda Valley, Sandton Office 44,0 6 Georgian Crescent, Bryanston, Sandton Office 10,5 Bonanza, Fordsburg, Johannesburg Industrial 14,6 Strijdom Park 347, Strijdom Park, Randburg Industrial 13,0 Denmaree, Denver, Johannesburg Industrial 7,9 Total RSA 265,1

56

SOUTH AFRICA

ANNEXURE 7: COMMITMENTS RSA

Commitments Sector FY14 Rm Developments Brooklyn Mall/Design Square (75%), Brooklyn, Pretoria Retail 35,4 Discovery Head Office (55%), Sandton Office 1 386,9 Bridge Park, Century City, Cape Town Office 153,4 Ridgeview, Umhlanga Ridge, Durban Office 141,3 The Annex (50%), Sandton Office 34,7 Hilltop Industrial Estate, Elandsfontein Industrial 48,8 Meadowbrook Estate, Meadowbrook, Germiston Industrial 48,4 Trafford Park, Pinetown, Durban Industrial 48,0 Hilltop Industrial Estate (Man Diesel & Turbo), Elandsfontein Industrial 46,2 Penraz, Industrial, Johannesburg Industrial 32,7 Other below R30,0 m 87,2 Subtotal 2 063,0 Acquisitions Inyanda 1, 2, 3 and 4 Parktown, Johannesburg (net asset value) Office 224,9 Other below R30,0 m 47,0 Subtotal 271,9 Total commitments 2 334,9

57

SOUTH AFRICA

ANNEXURE 8: TOP 10 RSA RETAIL PROPERTIES BY VALUE

Fair value Rm GLA m² 1 Brooklyn Mall/Design Square (75%), Brooklyn, Pretoria 1 953 56 069 2 Waterfall Mall, Rustenburg 1 287 49 228 3 Lakeside Mall, Benoni 1 234 67 515 4 La Lucia Mall, La Lucia, Durban 1 066 36 379 5 Kolonnade (50%), Montana Park, Pretoria 958 37 893 6 Walmer Park Shopping Centre, Walmer Park, Port Elizabeth 901 43 202 7 Alberton City, Alberton 877 47 615 8 The Constantia Village, Constantia, Cape Town 813 20 370 9 Northgate (50%), Randburg, Johannesburg 756 45 329 10 Woodmead Retail Park, Woodmead, Johannesburg 732 54 891 Subtotal 10 577 458 491 31 Balance of sector 5 179 449 255 41 Total for the Retail sector 15 756 907 746 67% 33%

Property portfolio by value

50% 50% Top 10 properties Balance of sector

Property portfolio by GLA

58

SOUTH AFRICA

ANNEXURE 9: TOP 10 RSA RETAIL TENANTS

• 1. Ranked ito gross monthly rental

GLA¹ m² 1 Edcon Holdings (Pty) Ltd 85 954 2 The Foschini Group Ltd 32 469 3 Pick n Pay Stores Ltd 74 476 4 Mr Price Group Ltd 34 127 5 Pepkor Holdings Ltd 28 689 6 Shoprite Holdings Ltd 70 180 7 Massmart Holdings Ltd 45 334 8 Truworths International Ltd 19 130 9 Woolworths Holdings Ltd 54 209 10 Clicks Group Ltd 15 786 Subtotal 460 354 Balance of the sector 406 931 Total for Retail sector (excl vacancies) 867 285 41% 59% 53% 47% Top 10 tenants Balance of sector

Top 10 tenants by value Top 10 tenants by GLA

59

SOUTH AFRICA

ANNEXURE 10: TOP 10 RSA OFFICE PROPERTIES BY VALUE

Fair value Rm GLA m² 1 Investec, Sandton 2 084 70 945 2 Constantia Office Park, Roodepoort 1 006 72 411 3 The Place, Sandton 979 34 023 4 Inanda Greens, Wierda Valley, Sandton 857 40 509 5 Growthpoint Business Park, Midrand 572 69 900 6 Montclare Place, Claremont, Cape Town 529 29 446 7 Country Club Estate, Woodmead, Sandton 498 26 978 8 Turbine Square and Hall, Newtown, Johannesburg 454 22 796 9 The Towers (50%), Sandton 447 12 655 10 N1 City Hospital, Goodwood, Cape Town 390 14 022 Subtotal 7 816 393 685 155 Balance of sector 16 511 1 067 056 165 Total for the Office sector 24 327 1 460 741 32% 68%

Property portfolio by value

27% 73% Top 10 properties Balance of sector

Property portfolio by GLA

60

SOUTH AFRICA

ANNEXURE 11: TOP 10 RSA OFFICE TENANTS

• 1. Ranked ito gross monthly rental

GLA¹ m² 1 Investec Bank Ltd 85 134 2 Mobile Telephone Networks (Pty) Ltd 21 956 3 Netcare Hospitals (Pty) Ltd 16 913 4 Business Connexion (Pty) Ltd 36 093 5 ABSA Bank Ltd 20 227 6 EOH Mthombo (Pty) Ltd 24 666 7 Anglogold Ashanti Ltd 18 705 8 Allied Electronics Corporation Ltd 21 232 9 Nestlé South Africa (Pty) Ltd 11 986 10 Aon South Africa (Pty) Ltd 9 400 Subtotal 266 312 Balance of the sector 1 077 587 Total for Office sector (excl vacancies) 1 343 899 23% 77% 20% 80% Top 10 tenants Balance of sector

Top 10 tenants by value Top 10 tenants by GLA

61

SOUTH AFRICA

ANNEXURE 12: TOP 10 RSA INDUSTRIAL PROPERTIES BY VALUE

Fair value Rm GLA m² 1 Growthpoint Industrial Estate, Meadowdale 400 61 246 2 Adcock Ingram, Midrand 205 21 536 3 Hilltop Industrial Estate, Elandsfontein 194 66 564 4 Rivonia Crossing 2, Sandton 188 20 454 5 Omni Park, Aeroton, Johannesburg 162 41 331 6 Rivonia Crossing 1, Sandton 159 14 848 7 Central Park, Elsiesriver, Cape Town 147 49 135 8 Pine Industrial Park, New Germany 134 39 150 9 Newmarket Industrial Estate, Alrode, Alberton 128 34 075 10 Grenville, Epping, Cape Town 124 16 220 Subtotal 1 841 364 559 220 Balance of sector 7 445 1 829 900 230 Total for the Industrial sector 9 286 2 194 459 20% 80%

Property portfolio by value

17% 83% Top 10 properties Balance of sector

Property portfolio by GLA

62

SOUTH AFRICA

ANNEXURE 13: TOP 10 RSA INDUSTRIAL TENANTS

• 1. Ranked ito gross monthly rental

GLA¹ m² 1 The Bidvest Group Ltd 62 810 2 Ellerine Furnishers (Pty) Ltd 46 404 3 Adcock Ingram Holdings Ltd 27 280 4 Scania SA (Pty) Ltd 23 341 5 Midas Group (Pty) Ltd 24 703 6 The Laser Transport Group (Pty) Ltd 36 013 7 Kulungile Metals (Pty) Ltd (Robor) 49 000 8 Distell Ltd 45 658 9 Allied Electronics Corporation Ltd 27 872 10 Pioneer Foods (Pty) Ltd 20 734 Subtotal 363 815 Balance of the sector 1 765 768 Total for Industrial sector (excl vacancies) 2 129 583 19% 81%

Top 10 tenants by value

17% 83% Top 10 tenants Balance of sector

Top 10 tenants by GLA

63

SOUTH AFRICA

ANNEXURE 14: EXPOSURE TO ABIL GROUP

GLA Ellerines m² %

• f total

GLA African Bank m² %

• f total

GLA Total ABIL m² Total Growthpoint m² % Retail 15 862 1.7% 1 222 0.1% 17 084 907 746 1.9% Office 199

• 199

1 460 741

• Industrial

46 404 2.1%

• 46 404

2 194 459 2.1% 62 465 1.4% 1 222 0.0% 63 687 4 562 946 1.4% Monthly charges Ellerines R % African Bank R % Total ABIL R Total Growthpoint R % Retail 1 443 346 0.8% 248 488 0.1% 1 691 834 185 077 955 0.9% Office 32 305

• 32 305

290 213 929

• Industrial

2 490 466 2.0%

• 2 490 466

126 811 331 2.0% 3 966 117 0.7% 248 488 0.0% 4 214 605 602 103 215 0.7% Annualised 47 593 404 0.7% 2 981 856 0.0% 50 575 260 7 225 238 580 0.7%

64

SOUTH AFRICA

ANNEXURE 15: GLA AND VACANCY RECONCILIATION RSA

• 1. 21.5% of opening balance GLA expired during the year under review
• 2. Retention % of 65.7% compared to 70.4% for the year to FY13

Total GLA m² Vacant area m² Vacancy Balance at 1 Jul 2013 4 270 467 189 718 4.4% GLA adjustments (25 276) (9 618) Disposals (91 843) (7 910) Acquisitions 396 006 55 724 Developments and extensions 13 592

• Leases expired in the year¹
• 916 018

Renewals of expired leases²

• (602 020)

New letting of vacant space

• (399 940)

Leases terminated

• 80 207

Balance at 30 Jun 2014 4 562 946 222 179 4.9%

65

SOUTH AFRICA

ANNEXURE 16: LEASE EXPIRY BY SECTOR RSA (% OF GLA)

14.0 14.5 15.0 13.3 15.5 18.6 4.6 4.5 17.3 9.9 11.4 17.6 17.4 13.2 5.2 8.0 6.5 9.6 7.7 19.8 25.7 23.0 4.7 3.0 Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE].0 Total [VALUE] Total [VALUE] FY20 and beyond By FY19 By FY18 By FY17 By FY16 By FY15 Monthly Vacant Retail Office Industrial

66

SOUTH AFRICA

ANNEXURE 17: LEASE EXPIRY BY SECTOR RSA (% OF GROSS MONTHLY RENTAL)

10.1 13.8 15.7 15.4 18.1 18.3 4.8 3.8 23.4 8.9 11.5 16.8 16.3 12.9 4.1 6.1 7.8 10.3 9.2 17.1 25.1 23.5 4.0 3.0 Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE] Total [VALUE] FY20 and beyond By FY19 By FY18 By FY17 By FY16 By FY15 Monthly Vacant Retail Office Industrial

67

SOUTH AFRICA

ANNEXURE 18: SHARES ISSUED AND SHAREHOLDERS HOLDING >2% AT FY14

Shares Opening balance 1 Jul 2013 1 891 558 328 Distribution reinvestment (Sep 2013 and Mar 2014) 93 071 195 Shares issued for acquisitions (Jan 2014 to Mar 2014) 109 132 477 Shares issued for investments (Apr 2014 to Jun 2014) 191 146 257 Closing balance 30 Jun 2014 2 284 908 257 Treasury shares held for staff share scheme (32 406 635) Shares in issue (net of treasury shares) 2 252 501 622 Name % Holding Shares held Public Investment Corporation (PIC)¹ 18.9 431 981 972 Stanlib 5.3 122 128 043 BEE Consortium 3.5 80 166 667 Old Mutual Group 3.5 79 684 414 Investment Solutions 3.3 75 543 252 Investec 3.1 70 980 930 Eskom Pension & Provident Fund 2.7 62 253 250 Vanguard 2.6 60 068 020 Momentum 2.3 53 121 522 Sanlam Group 2.1 47 324 375 Allan Gray 2.1 47 255 549 Total shareholders holding >2% 49.4 1 130 507 994 Other 50.6 1 154 400 263 Total 100.0 2 284 908 257 Foreign shareholding 18.9%

• 1. After year end, Southern Palace Properties (Pty) Ltd acquired 8.0% of Growthpoint’s share capital from the PIC

68

SOUTH AFRICA

ANNEXURE 19: DETAILED BORROWINGS – NOMINAL VALUE

• 1. An extension of five years has been signed by the bank
• 2. An extension of two years has been signed by the bank

RSA Secured/ unsecured Refinance date FY14 Rm FY13 Rm Nedbank Unsecured Sep 13

• 800

Standard Bank Secured Feb 14

• 800

Commercial paper – 3 months Unsecured Aug 14 400 400 China Construction Bank¹ Secured Sep 14 250

• ABSA²

Secured Nov 14 600 600 Corporate Bond – GRT01 Unsecured Dec 14 500 500 Corporate Bond – GRT05 Unsecured Jan 15 750 750 ABSA – Paramount Secured Mar 15 740 740 RMB Secured Jun 15 500 500 RMB Secured Sep 15 500

• Corporate Bond – GRT03

Unsecured Oct 15 500 500 Investec Secured Dec 15 181

• Standard Bank/Sanlam

Secured Feb 16 1 000 800 Nedbank Unsecured Feb 16 246

• RMB

Secured Mar 16 500

• Corporate Bond – GRT02

Unsecured May 16 500 500 Corporate Bond – GRT04 Unsecured Sep 16 260 260 Standard Bank Secured Oct 16 800

• RMB

Secured Jun 17 1 000 1 000 Corporate Bond – GRT06 Unsecured Dec 17 500 500

69

SOUTH AFRICA

ANNEXURE 19: DETAILED BORROWINGS – NOMINAL VALUE (CONTINUED)

• 3. Includes the debt of the equity accounted Tiber entities
• 4. Includes a cumulative foreign exchange difference of R2,3 bn (FY13: R1,6 bn)

RSA Secured/ unsecured Refinance date FY14 Rm FY13 Rm RMB Secured Mar 18 675 675 RMB – Paramount Secured Apr 18 740 740 Nedbank Secured Dec 18 38

• Nedbank

Unsecured Dec 18 500 500 RMB Secured Mar 19 500

• Corporate Bond – GRT08

Unsecured Jun 19 499

• Nedbank

Unsecured Sep 19 1 000

• ABSA

Secured Apr 20 76

• OMSFIN

Secured Jun 21 1 200 1 200 Nedbank Unsecured Jan 22 25

• Investec

Secured Aug 23 260

• Nedbank

Unsecured Jan 24 25

• Corporate Bond – GRT07

Unsecured Feb 24 400

• Investec

Secured Feb 24 703 703 Subtotal 16 368 12 468 Nedbank (equity-accounted) Secured Dec 15 52

• Nedbank (equity-accounted)

Secured Oct 20 79

• Total³

16 499 12 468 GOZ Westpac, NAB, ANZ (weighted average interest rate of 5.8%) Secured 8 677⁴ 7 103⁴ Total 25 176 19 571

70

SOUTH AFRICA

ANNEXURE 20: DEBT EXPIRY PROFILE RSA

23 21 12 12 9 7 8 8 5 10 15 20 25 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 %

The weighted average term of our debt facilities is 3.5 years

71

SOUTH AFRICA

ANNEXURE 21: FIXED INTEREST RATE EXPIRY PROFILE RSA

22 3 6 17 17 12 3 14 6 5 10 15 20 25 Floating FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 %

The weighted average term of our debt facilities is 4.3 years

72

AUSTRALIA - GOZ

ANNEXURE 22: SPLIT OF GOZ PROPERTY PORTFOLIO

50% 50% Office Industrial 17% 83% 31% 29% 8% 22% 6% 3% 1% Queensland Victoria South Australia New South Wales Western Australia ACT Tasmania 18% 50% 11% 11% 8% 1% 1%

Value GLA GLA Value

73

AUSTRALIA - GOZ

ANNEXURE 23: ACQUISITIONS, DEVELOPMENTS AND OTHER CAPEX GOZ

Building Sector FY14 Rm AUDm Yield 120-132 Atlantic Drive, Keysborough, VIC Industrial 163,7 17,7 7.5% 1 Charles Street, Parramatta, NSW Office 2 539,1 254,9 7.6% 9-11 Drake Boulevard, Keysborough, VIC Industrial 227,5 24,6 8.3% 213-215 Robinson Road, Keysborough, VIC Industrial 226,6 24,5 8.5% 19&20 Southern Court Road, Keysborough, VIC Industrial 94,3 10,2 8.3% 99-103 William Angliss Drive, Laverton North, VIC Industrial 200,8 21,0 8.3% 3 452,0 352,9 Developments and other capex Sector Rm AUDm Yield 27-49 Lenore Lane, Eskrine Park, NSW Industrial 248,0 26,7 8.1% 19&20 Southern Court Road, Keysborough, VIC Industrial 82,1 8,6 8.3% Other 86,1 8,0 416,2 43,3

74

AUSTRALIA - GOZ

ANNEXURE 24: TOP 10 GOZ PROPERTIES BY VALUE

53% 47%

Property portfolio by value

36% 64% Top 10 properties Balance of the GOZ properties

Property portfolio by GLA

Building Sector Fair value Rm GLA m² 1 1 Charles Street, Parramatta, NSW Office 2 402 31 954 2 70 Distribution Street, Larapinta, QLD Industrial 1 726 75 425 3 2 Horrie Miller Drive, Perth Airport, WA Industrial 1 206 80 374 4 333 Ann Street, Brisbane, QLD Office 946 16 490 5 219-247 Pacific Highway, Artarmon, NSW Office 925 14 388 6 1231-1241 Sandgate Road, Nundah, QLD Office 875 12 978 7 28 Bilston Drive, Wodonge, VIC Industrial 752 57 440 8 572-576 Swan Street (Building 2), Richmond, VIC Office 747 14 660 9 120 Northcorp Boulevard, Broadmeadows, VIC Industrial 692 58 320 10 CB1, 22 Cordelia Street, South Brisbane, QLD Office 687 11 529 Subtotal 10 958 373 558 41 Balance of GOZ 9 901 663 182 51 Total for GOZ 20 859 1 036 740

75

AUSTRALIA - GOZ

ANNEXURE 25: TOP 10 GOZ TENANTS

• 1. Ranked ito gross monthly rental

GLA¹ m² 1 Woolworths 406 941 2 NSW Police 31 954 3 GE Capital Finance Australasia 24 910 4 Linfox 58 077 5 Commonwealth of Australia - DEEWR 15 398 6 Jacobs 9 595 7 Energex 8 754 8 Fox Sports 8 092 9 Star Track Express 44 424 10 Runge Pincock Minarco 4 334 Subtotal 612 479 Balance of GOZ 408 475 Total for GOZ (excl vacancies) 1 020 954 62% 38% 60% 40% Top 10 properties Balance of the GOZ properties

Top 10 tenants by value Top 10 tenants by GLA

76

AUSTRALIA - GOZ

ANNEXURE 26: NET PROPERTY INCOME ANALYSIS GOZ

• Average exchange rate R9.53/AUD (FY13: R9.07/AUD)

FY14 Rm FY13 Rm Increase Gross property revenue 1 617 1 419 14.0% Property expenses (196) (159) 23.3% Net property income 1 421 1 260 12.8% Adjustments (296) (169) 75.1% Foreign exchange impact (69)

• Acquisitions and developments

(227) (133) Disposals

• (36)

Adjusted “like for like” net property income 1 125 1 091 3.1% Office 516 496 4.0% Industrial 609 595 2.4%

77

AUSTRALIA - GOZ

ANNEXURE 27: GLA AND VACANCY RECONCILIATION GOZ

• 1. 5.6% of opening balance GLA expired during the year under review
• 2. Retention % of 76.0% for FY14

Total GLA m² Vacant area m² Vacancy Balance at 1 Jul 2013 886 975 3 641 0.4% GLA adjustments 1 880

• Acquisitions, developments and extensions

147 885

• Leases expired in the year¹
• 49 370

Renewals of expired leases²

• (37 532)

New letting of vacant space

• (2 246)

Leases terminated

• 2 553

Balance at 30 Jun 2014 1 036 740 15 786 1.5%

78

AUSTRALIA - GOZ

ANNEXURE 28: LEASE EXPIRY BY SECTOR GOZ

3 5 3 10 17 10 52 1 4 7 7 5 76 20 40 60 80 100 Vacant By FY15 By FY16 By FY17 By FY18 By FY19 FY20 and beyond

%

Office Industrial

% of GLA % of gross monthly rental

3 8 3 10 15 10 51 1 1 3 5 7 3 80 20 40 60 80 100 Vacant By FY15 By FY16 By FY17 By FY18 By FY19 FY20 and beyond

%

Office Industrial

79

V&A WATERFRONT

ANNEXURE 29: SPLIT OF V&A PROPERTY PORTFOLIO

55% 19% 7% 11% 8% Retail Office Fishing & Industrial Hotel & Residential Bulk

Property portfolio by value Developed vs undeveloped by value

24% 26% 29% 21% Retail Office Fishing & Industrial Hotel & Residential 92% 8% Developed Undeveloped 54% 24% 10% 12% Retail Office Fishing & Industrial Hotel & Residential

Property portfolio by GLA Net property income

80

V&A WATERFRONT

ANNEXURE 30: DEVELOPMENTS AND COMMITMENTS FOR DEVELOPMENTS V&A (50%)

Developments Sector FY14 Rm Pick n Pay (new store) Retail 39,5 Watershed development Retail 21,6 Silo development (grain silo) Office 46,9 Phase 2 car park Office 28,6 Breakwater and Portswood Residential 82,3 Other below R20,0 m 57,1 Total 276,0 Commitments for developments Sector FY14 Rm Silo No 5 165,0 Silo development (grain silo) Museum 158,2 Phase 2 car park Office 85,2 Breakwater Residential 30,7 Other below R30,0 m 56,8 Total 495,9

81

V&A WATERFRONT

ANNEXURE 31: TOP 10 V&A TENANTS (100%)

• 1. Ranked ito gross monthly rental

GLA¹ m² 1 Allan Gray Ltd 9 250 2 Nedbank Group Ltd 12 716 3 Woolworths Holdings Ltd 3 641 4 Legacy Hotels 8 113 5 Sun International Hotels 8 550 6 BP Southern Africa 4 750 7 Edgars 3 239 8 The Foschini Group Ltd 1 412 9 Tourvest Holdings (Pty) Ltd 1 606 10 Newmark Hotels 3 474 Subtotal 56 751 Balance of V&A 135 975 Total for V&A (excl vacancies) 192 726 33% 67% 29% 71% Top 10 tenants Balance of sector

Top 10 tenants by value Top 10 tenants by GLA

82

V&A WATERFRONT

ANNEXURE 32: DISTRIBUTABLE INCOME ANALYSIS V&A (50%), “LIKE FOR LIKE” DISTRIBUTABLE INCOME GROWTH V&A (50%)

FY14 Rm FY13 Rm Increase/ (decrease) Gross property revenue 485 447 8.5% Property expenses (129) (119) 8.4% Net property income 356 328 8.5% Other operating expenses (16) (13) 23.1% Net finance costs (14) (2) 700.0% Other non-distributable amounts 6 (1) (600.0%) Distributable income 332 312 6.4% Adjustments (20) (27) Allan Gray development and previous space (net of finance costs) (10) (20) Other developments (10) (7) Adjusted “like for like” distributable income 312 285 9.5%

83

V&A WATERFRONT

ANNEXURE 33: GLA AND VACANCY RECONCILIATION V&A (50%)

• 1. 10.1% of opening balance GLA expired during the year under review
• 2. Retention % of 89.1% compared to 88.6% for the year to FY13

Total GLA m² Vacant area m² Vacancy Balance at 1 Jul 2013 193 873 1 146 0.6% GLA adjustments (17 062) (1 257) Developments and extensions 18 889

• Leases expired in the year¹
• 19 629

Renewals of expired leases²

• (17 499)

New letting of vacant space

• (1 284)

Leases terminated

• 2 239

Balance at 30 Jun 2014 195 700 2 974 1.5%

84

V&A WATERFRONT

ANNEXURE 34: LEASE EXPIRY BY SECTOR V&A

2 15 8 16 20 15 24 3 20 8 6 4 4 55 4 1 29 66 1 3 96 20 40 60 80 100 Vacant By FY15 By FY16 By FY17 By FY18 By FY19 FY20 and beyond

%

Retail Office Industrial Hotel

% of GLA % of gross monthly rental

2 20 14 19 19 16 12 24 6 7 3 4 56 10 2 39 49 1 3 96 20 40 60 80 100 Vacant By FY15 By FY16 By FY17 By FY18 By FY19 FY20 and beyond

%

Retail Office Industrial Hotel

85

SOUTH AFRICA

ANNEXURE 35: EQUITY-ACCOUNTED PROFITS AND INVESTMENTS

Two properties: Inyanda 1, 3, 4 and TATA, where 50% was acquired by Tiber during the year

Equity-accounted profits included in management accounts FY14 Rm Gross property income 10 Property expenses (2) Net property income 8 Net finance cost (4) Equity-accounted profit before taxation 4 Distribution made (4) Equity-accounted investments included for management accounts FY14 Rm Investment property 315 Current assets 18 Borrowings - nominal value (131) Deferred taxation (39) Current liabilities (15) Owners’ equity 148

MENLYN CORNER, Gauteng

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