ANNUAL RESULTS PRESENTATION For the year ended 30 June 2016 AGENDA - - PowerPoint PPT Presentation

ANNUAL RESULTS PRESENTATION

For the year ended 30 June 2016

AGENDA

• Strategy & Highlights
• Financial Results
• Capital Management
• Portfolio Update
• South Africa
• V&A Waterfront
• GOZ
• Conclusion
• Annexures

Harbour, V&A Waterfront

STRATEGY & HIGHLIGHTS

Bridgepark, Cape Town

Value 1

2016

REVIEW

Tough year Volatile financial markets Increasing interest rate environment

Optimising and streamlining the existing portfolio

• Non core properties identified for sale

Introduction of new revenue streams

• Funds management business
• Trading and development

Grow contribution of non-SA distributable income

• GOZ
• Europe incl. Eastern Europe

Depressed local and global growth Supply continues to exceed demand Refining our vision which drives our strategy

6 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion

VISION & MISSION

We create value for all our stakeholders through innovative and sustainable property solutions

MISSION

To be a leading international property company providing space to thrive

VISION

7 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion

FY16 HIGHLIGHTS

Same as FY15 FY16 – strong focus

• n tenant retention

RSA expenses under control 27.8% FY15

183,8

cents

6.0%

growth

dividend per share

5.7%

vacancies

27.2%

expense-to-income

30.5%

LTV

RSA gearing levels remain conservative, decreased from 32.1% FY15

26.1%

growth in gross revenue

R5,1bn

19.8% distributable income growth

R112,5bn

property assets

19.7%

property value increase

GOZ

8 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion

Diversified across sectors and geography

GROWTHPOINT HIGHLIGHTS

Inclusion in FTSE/JSE Responsible Investment Index Constituent FTSE Russell EPRA/NAREIT Emerging Index

7th

5

South African, primary listed REIT

#1

Transparent reporting Sustainable quality

• f earnings

Proven management track record Underpinned by high-quality physical property assets Excellent corporate governance

Top

year largest

Inclusion in FTSE/JSE Top 40 Index

35th

R71,5bn

Market capitalisation

largest company on the JSE

Most liquid and tradeable way to own commercial property in SA

R3,8bn

average value traded/ month

9 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion

GROWTH IN DIVIDEND PER SHARE (CENTS)

FY12 FY13 FY14 FY15 FY16 Interim dividend Special dividend Final dividend

7.2% 7.2% 8.5% 8.0% 7.5% 7.5% 139,0 161,3 149,0 173,4

71,2 82,8 76,3 44,5 67,8 78,5 72,7 84,4 44,5 6.0% 89,5

Growth

7.2%

Growth

8.3%

Growth

7.5%

Growth

6.0%

London Circuit, Canberra, ACT

183,8

94,3 6.0%

10 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion

GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION

500 1 000 1 500 2 000 2 500 3 000 20 40 60 80 100 120 FY11 FY12 FY13 FY14 FY15 FY16 Cents Rbn Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share (cents) 2 568c 2 474c

11 STRATEGY & HIGHLIGHTS Financial Results Capital Management Portfolio Update Conclusion

LONG BOND YIELD VS. GRT FORWARD YIELD

4% 5% 6% 7% 8% 9% 10% 11%

01/07/2011 01/01/2012 01/07/2012 01/01/2013 01/07/2013 01/01/2014 01/07/2014 01/01/2015 01/07/2015 01/01/2016 01/07/2016

Long Bond GRT Forward Yield

Jun 2011 Dec 2011 Jun 2012 Dec 2012 Jun 2013 Dec 2013 Jun 2014 Dec 2014 Jun 2015 Dec 2015 Jun 2016

FINANCIAL RESULTS

Hilltop Industrial Park, Elandsfontein

Value 2

13 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion

CONTRIBUTION TO DISTRIBUTABLE INCOME

332 368 429 513 658 772 165 345 22

FY14 FY15 FY16 RSA V&A Waterfront GOZ Listed Investments

2 487 2 861

R3 497m R4 232m R5 072m

3 849 9.5% 71.1% 4.7% 8.7% 67.6% 15.5% 8.5% 75.9% 15.2% 0.4%

Growth

21.0%

Growth

19.8%

The Oval, Cape Town

8.2% 14.7%

14 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion

CONSOLIDATED DISTRIBUTION CALCULATION

FY16 Rm FY15 Rm INCREASE/ (DECREASE)

Gross property income 9 764 7 740 26.1% RSA 7 589 5 896 28.7% GOZ 2 175 1 844 18.0% Property expenses (2 126) (1 630) 30.4% RSA (1 864) (1 417) 31.5% GOZ (262) (213) 23.0% Net property income 7 638 6 110 25.0% Other operating expenses (308) (303) 1.7% RSA (204) (222) (8.1%) GOZ (104) (81) 28.4% Net property income after operating expenses 7 330 5 807 26.2% Finance costs (2 466) (2 086) 18.2% RSA (1 989) (1 663) 19.6% GOZ (477) (423) 12.8% Finance income 760 987 (23.0%) Investment income from V&A Waterfront 429 368 16.6% Other finance income(1) 331 619 (46.5%) Adjustment for NCI, foreign exchange profit / (loss), normal taxation and profit on sale of Stor-Age (552) (476) 16.0% Distributable profit 5 072 4 232 19.8% Dividend for the period 5 072 4 232 19.8%

• 1. Includes R39m (FY15: R66m) dividends received on treasury shares held, R31m antecedent dividend, R22m distribution from Stenham (FY15: R345m from Acucap & Sycom prior to the

acquisition of the remaining interest on 1 April 2015) and R50m interest on V&A Waterfront development funding.

* Average exchange rate at R10.57/AUD (FY15: R9.55/AUD) for GOZ.

15 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion

EXPENSE TO INCOME RATIOS (IFRS)

24.8% 24.0% 24.5% 3.8% 3.8% 2.7%

FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio

26.6% 27.8% 27.7% 3.3% 2.9% 3.1%

FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio

12.1% 11.6% 12.0% 5.3% 4.4% 4.8%

FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio

SOUTH AFRICA V&A WATERFRONT GOZ 27.8% 28.6% 27.2% 30.7% 29.9% 30.8% 16.0% 17.4% 16.8%

16 Strategy & Highlights FINANCIAL RESULTS Capital Management Portfolio Update Conclusion

CONSOLIDATED BALANCE SHEET (EXTRACTS)

FY16 Rm FY15 Rm INCREASE/ (DECREASE) Property portfolio(1) 104 690 93 574 11.9% RSA 73 752 71 550 3.1% GOZ(2) 30 938 22 024 40.5% 50% Investment in V&A Waterfront 6 616 6 047 9.4% Other property-related investments 440 742 (40.7%) Nominal borrowings(3) 38 413 33 811 13.6% RSA(4) 24 653 25 444 (3.1%) GOZ(2) 13 760 8 367 64.5% Shareholders interest 68 295 63 369 7.8%

• 1. Includes R1 938m of properties classified as held for sale (FY15: R539m), of which R1 674m relates to GOZ.
• 2. Closing exchange rate at R11.04/AUD (FY15: R9.40/AUD).
• 3. Excludes fair value adjustments.
• 4. The total value for FY16 excludes the deferred payments of R165m on the Samrand land purchased. The two outstanding payments are due Sept 2016 and Sept 2017.

CAPITAL MANAGEMENT

Inanda Greens, Sandton

Value 3

18 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion

RSA CAPITAL MANAGEMENT

FOR RSA FY16 FY15

Unutilised committed facilities (Rbn) 5,9 4,1 Weighted average term of liabilities (years) 3.0 2.9 Weighted average term of fixed interest rate profile (years) 3.4 3.5 Weighted average interest rate (%) 9.3 8.9 Weighted average interest rate (%) (Incl. CCIRS) 8.5 N/A % debt at fixed interest rate (incl. forward starting swaps) 86.6 76.0 Unencumbered assets (incl. V&A Waterfront and listed investments) (Rbn) 37,2 35,1 Unsecured debt (Rbn) 8,1 7,5

Debt Funding

• Bank margins increased since last year
• DCM more liquid
• More volatility in swap rates post Nenegate

& BREXIT

• Sovereign rating downgrade uncertainty remains

Greenfield Industrial Park, Cape Town

Equity Funding

R1,8bn raised incl. DRIP

19 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion

RSA CAPITAL MANAGEMENT (CONTINUED)

• R1.4bn of bonds and commercial paper repaid
• Bond issues well supported, raised R1,6bn for a term of 3-5 years
• Continued issuance of commercial paper R400m

BONDS

• R4,0bn of bank debt repaid
• R5,6bn of new bank debt
• Continued support for good quality borrowers

BANKING RELATIONSHIPS

• Total AUD452m representing 59% of the historical cost of GOZ

and 38% of market value of GOZ

• Yield on GOZ higher than implied cost of AUD

CROSS CURRENCY INTEREST RATE SWAPS

Oxford Corner, Rosebank

• National Scale Aaa.za - one of only two SA corporates
• Global Scale Baa2/P-2 – capped at sovereign rating
• Negative outlook – based on that of sovereign

MOODY’S RECALIBRATION

20 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion

RSA DIVERSIFIED BORROWINGS — NOMINAL VALUE

8 944 15 852 14 880 1 450 2 053 1 803 1 796 4 480 4 286 3 909 2 659 3 284 400 400 400

FY14 FY15 FY16

Secured bank debt Secured institutional financier Unsecured bank debt and institutional financier Corporate bonds Commercial paper

(1)

R25 444m R16 499m

Debt capital market 12.0% Traditional bank debt 88.0% Unsecured 29.6% Secured 70.4% Debt capital market 26.1% Traditional bank debt 73.9% Unsecured 37.0% Secured 63.0% Debt capital market 14.9% Traditional bank debt 85.1% Unsecured 32.3% Secured 67.7%

• 1. The total value for FY16 excludes the deferred payments of R165m on the Samrand land purchased. The two outstanding payments are due Sept 2016 and Sept 2017.

R24 653m

21 Strategy & Highlights Financial Results CAPITAL MANAGEMENT Portfolio Update Conclusion

40.6% 36.8% 42.0%

1 2 3 4 5 6 7 0% 10% 20% 30% 40%

FY14 FY15 FY16

LTV¹ Interest cover ratio

LOAN TO VALUE AND INTEREST COVER RATIOS

27.4% 32.1% 30.5%

1 2 3 4 5 6 7

0% 10% 20% 30% 40%

FY14 FY15 FY16

LTV ¹ Interest cover ratio (incl V&A)

30.8% 30.8% 33.2% 33.7%

1 2 3 4 5 6 7 0% 10% 20% 30% 40%

FY14 FY15 FY16

LTV¹ Interest cover ratio

SOUTH AFRICA GOZ(2) GROUP

• 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 and other equity-accounted and listed investments were included in the fair value of property assets.

• 2. Calculated in Rands.

3.4x 3.5x 3.7x 2.9x 3.4x 3.3x 3.8x 3.3x 3.2x

LTV(1) LTV(1) LTV(1) Interest cover ratio (incl V&A) LTV(1) Interest cover ratio LTV(1) Interest cover ratio

PORTFOLIO UPDATE

The Annex, Sandton

Value 4

23 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion

PORTFOLIO HIGHLIGHTS

*Includes 100% of GOZ and 50% of V&A Waterfront.

R29,2bn 58 properties 1.4m m²

RETAIL

R33,3bn 182 properties 1.8m m²

OFFICE

R30,9bn 58 properties 1.1m m²

AUSTRALIA (GOZ)

R7,8bn 1 property 0.2m m²

V&A WATERFRONT (50%)

R112,5bn*

526 properties 6.8m m²

TOTAL

R11,3bn 227 properties 2.3m m²

INDUSTRIAL

24 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion

CONSOLIDATED PORTFOLIO OVERVIEW

NET PROPERTY INCOME PROPERTY PORTFOLIO (by value)

RSA 70.7% V&A Waterfront 5.7% GOZ 23.6% RSA 65.6% V&A Waterfront 6.9% GOZ 27.5%

Willowbridge Place, Cape Town

PORTFOLIO UPDATE

South Africa

The Boulevard, Umhlanga

26 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa

PORTFOLIO OVERVIEW (EXCL. V&A)

FY14 FY15 FY16 Retail Office Industrial

23.2% 44.0% 32.8% 16.6% 46.0% 37.4% 19.9% 47.3% 32.8%

FY14 FY15 FY16 Retail Office Industrial

52.8% 37.8% 9.4% 48.6% 39.0% 12.4% 48.6% 39.1% 12.3%

FY14 FY15 FY16 Retail Office Industrial

18.9% 49.0% 32.1% 15.3% 45.1% 39.6% 14.6% 46.0% 39.4%

NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE

R4 479m R3 615m R5 725m 471 436 467 R71 550m R49 054m R73 752m

27 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa

NET PROPERTY INCOME ANALYSIS

FY16 Rm FY15 Rm INCREASE/ (DECREASE) Gross property revenue 7 589 5 896 28.7% Retail 2 953 1 995 48.0% Office 3 428 2 752 24.6% Industrial 1 208 1 149 5.1% Property expenses (1 864) (1 417) 31.5% Retail (814) (525) 55.0% Office (794) (635) 25.0% Industrial (256) (257) (0.4%) Net property income 5 725 4 479 27.8% Adjustments (1 897) (855) Acquisitions and developments (237) (192) Acucap & Sycom (1 369) (338) Ellerines (11) (7) Disposals (24) (69) Investec rent (256) (249) Adjusted “like-for-like” net property income 3 828 3 624 5.6% Retail 1 341 1 259 6.5% Office 1 685 1 588 6.1% Industrial 802 777 3.2%

28 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa

KEY PERFORMANCE INDICATORS

FY16 FY15

Vacancies (%) 5.7 5.7 Total arrears (Rm) 64,3 63,7 Provision for bad debts (B/S) (Rm) 29,8 25,9 Bad debts (I/S) (Rm) 15,9 15,1 Average in force escalations (%) 7.8 7.7 Renewal success rate (%) 68.7 65.5 Total letting success rate (%) 82.4 76.5 Weighted average renewal growth (%) 1.1 4.1 Weighted average future escalations on renewals (%) 7.8 8.3 Number of employees 657 700 Net property income per employee (R) 8 713 851 6 405 714

Ridgeview, Umhlanga

29 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa

RETAIL

FY16 FY15

Size of portfolio Rm Rm Net property income 2 139 1 470 Portfolio value 29 210 28 213 Vacancy % % Total portfolio 2.6 3.3 Arrears Rm Rm Total portfolio 37,5 35,6 Bad debt provision 15,1 14,7 Renewals % % Renewal success rate 89.3 87.0 Weighted average renewal growth 5.9 6.0 NET PROPERTY INCOME VACANCIES ARREARS LEASING TRADING

• Increased 45.5%; Acucap & Sycom portfolio included for a full 12 months
• Nominal increase in arrears is a reflection of challenging trading conditions
• Arrears as a % of total collectables improved to 9.7% vs. 10.2% for FY15
• Legal arrears of R14,3m (FY15: R16,8m) are fully provided for
• Improved to 2.6% due to ongoing leasing activity and focus on tenant retention
• Core retail vacancy is 2%
• Western Cape trading densities increased by 6.1%
• Increased competition experienced at nine of our shopping centres with the development of

new malls in their primary catchment areas

• Affluent shopping centres trading density increased by 7.1%
• 17 shopping centres exceeding R1bn turnover per year
• Renewal success rate improved to 89.3% but at the expense of lower escalation on renewal rentals
• Renewal success rate target above 90%

30 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa

OFFICE

FY16 FY15

Size of portfolio Rm Rm Net property income 2 634 2 117 Portfolio value 33 257 32 963 Vacancy % % Total portfolio 7.8 8.0 Arrears Rm Rm Total portfolio 15,3 18,8 Bad debt provision 7,8 7,4 Renewals % % Renewal success rate 61.4 62.0 Weighted average renewal growth (3.5) 1.5 NET PROPERTY INCOME VACANCIES ARREARS LEASING DEVELOP- MENTS

• NPI increased 24.4%, mainly due to the acquisition of Acucap & Sycom included for a full 12 months
• “like –for-like” portfolio increased 6.1%
• The control of arrears has become more difficult with many tenants experiencing cash constraints

and requesting more time to pay rentals

• Arrears were however well contained at 3.7% of collectables
• Legal matters account for R8,6m of this balance, of which R7,8m was provided for
• Decreasing (SAPOA vacancies Q2 2016 10.5%)
• A and P grade properties more resilient
• Nodes showing backfill risk: Sandton, Rosebank, Illovo, Midrand and Houghton
• Demand for P Grade space in Sandton and Rosebank
• Over 100 000m² of developments completed or in progress during the period
• Located in Sandton, Centurion, Century City, Umhlanga and Bryanston, with 97% of this

space pre-let

• Renewal success rate 0.6% below last year
• Negative renewal growth of 3.5% impacted by 3 renewals on 17 205m²

31 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa

INDUSTRIAL

FY16 FY15

Size of portfolio Rm Rm Net property income 952 892 Portfolio value 11 285 10 436 Vacancy % % Total portfolio 6.0 5.3 Arrears Rm Rm Total portfolio 11,5 9,3 Bad debt provision 6,9 3,8 Renewals % % Renewal success rate 63.5 61.6 Weighted average renewal growth 0.5 4.9 NET PROPERTY INCOME VACANCIES ARREARS LEASING DEVELOP- MENTS

• NPI increased 6.7% despite difficult trading conditions for our clients
• “like-for-like” portfolio, excluding 3 properties of just over 44 000m²

increased 5.7% and renewal growth excluding these properties was 4.0%

• Increased off a low base with tenants feeling the pressure of the broader SA economy
• Deteriorated above market (4.5%) but expected to normalise by HY17 with a number of large

vacancies either immanently let or sold

• Four properties represent 2.21% of the total vacancy at 49 787m²
• Good development pipeline across JHB, KZN and Cape Town
• 3rd party development opportunities (Turnkey)
• New sustainable rental streams at very low expense ratios
• 49 165 m² currently under development across six properties
• Manufacturing sector impacted by the weak macro; as such rentals have come under pressure
• Large warehouses and logistics consolidation, has enabled tenants to negotiate favourable rentals
• The improvement in the renewal success rate and corresponding decline in the rental growth

rate is indicative of us having to keep tenants vs. the costs of vacancies and other associated costs

32 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion South Africa

PROPERTY INVESTMENT ACTIVITIES

R840,5m R1,1bn R2,4bn R1,7bn

ACQUISITIONS DISPOSALS DEVELOPMENTS & CAPITAL EXPENDITURE COMMITMENTS

PORTFOLIO UPDATE

V&A Waterfront

The Grain Silo, V&A Waterfront

34 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront

V&A WATERFRONT PORTFOLIO OVERVIEW (50%)

FY14 FY15 FY16

Retail Office Fishing & Industrial Hotel & Residential

21.4% 48.1% 30.5%

FY14 FY15 FY16

Retail Office Fishing & Industrial Hotel & Residential Bulk

NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE R399m R356m R462m R6 761m R5 947m R7 766m

21.6% 51.3% 17.6% 14.7% 9.8% 52.2% 23.3% 18.4% 54.1% 18.6% 8.9% 8.4% 18.7% 6.6% 11.5% 54.8% 11.6% 53.9% 20.9% 6.1% 7.5% 11.4% 52.6% 6.4% 23.8% 5.8% 9.5%

35 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront

KEY PERFORMANCE INDICATORS

FY16 FY15

Vacancies (%) 1.4 2.6 Total arrears (Rm) 28,1 21,0 Provision for bad debts (B/S) (Rm) 8,6 8,4 Bad debts (I/S) (Rm) 1,4 2,0 Average in force escalations (%) 8.0 8.3 Renewal success rate (%) 82.3 92.7 Total letting success rate (%) 90.3 88.9 Weighted average renewal growth (%) 6.0 7.1 Weighted average future escalations on renewals (%) 8.0 7.6 Number of employees (100%) 186 182 Net property income per employee (R) 4 967 742 4 384 615

The Grain Silo, V&A Waterfront

36 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront

OPERATIONAL REVIEW

RETAIL

SALES GROWTH

• Continued double digit year on year sales growth at

22%

• Trading density increased by 13% for the period
• Benefit seen from weaker Rand, increased tourists

and enhanced tenant mix

VACANCIES & TENANT MIX

• Vacancies low at 0.5%
• H&M traded since October 2015, currently one of their

top five stores globally in terms of unit sales

• New retailers for the country include Versace,

Hackett and Seafolly

TO LET

24,2m VISITORS

• Up 2.75%
• Increased tourism, earlier onset of H&M and good

weather include drawing factors

DEVELOP- MENT

• The Hildebrand restaurant will be split to celebrate

“harbour edge dining” and offer a new Portuguese concept

• The Quayside project will provide enclosure during

the winter season and include an alfresco offering which will further enhance the food offering at the V&A

GREEN SUSTAIN- ABILITY

• Victoria Wharf achieved the first in Africa 4 star

“Green Star Rating” on the existing building

WATERSHED CRAFT & DESIGN

• Strong demand for space with no vacancies
• Commitment to growing strength of small businesses
• 34% sales growth
• Trading densities particularly strong
• The Wellness offering to be relocated to the ground

floor

37 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront

OPERATIONAL REVIEW

OFFICE FISHING & INDUSTRIAL

VACANCIES

• 1.7%
• Well below national benchmark

WORKSHOP 17

• Co-working and meeting space
• Trading for just under 12 months
• At 100% occupancy level
• Expansion of W17 space to meet continued demand

and waiting list of small businesses

DEVELOP- MENT

• Attraction of high calibre blue chip tenancies
• PwC and Werksmans took occupation in the Silo

District

• Virgin Active opening December 2016
• The Canal District looks forward to welcoming BAT in

October 2016 and EY in 2017

DOCKSIDE PRECINCT

• The V&A Waterfront has managed its first season of

the cruise liner terminal

• To date some 30 000 passengers, 45 vessels and

17 800 crew members have been through the terminal

STABLE FISHING INDUSTRY

• Long term leases in place

TO LET

38 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront

OPERATIONAL REVIEW

HOTEL RESIDENTIAL

TRADING LEVELS

• Continued growth in hotel trading levels and

performance

• Benchmark comparatives indicate that the V&A

Waterfront hotels trade at approx. 20% premium levels

• Hotel occupancies exceed the Western Cape’s

DEVELOP- MENT

• Silo Hotel, operated by Royal Hotel Portfolio opens its

doors in early 2017

• The first Radisson Red in South Africa on track to
• pen September 2017

ZEITS MOCAA

• The first for Africa , Museum of Contemporary Art

nearing completion in December 2016

• Official opening of this non-profit organisation in

September 2017

TO LET

• The income stream is still in its early days
• Just over 250 apartments to let
• The renewals and new letting are being managed to

decrease the vacancy levels

DEVELOP- MENT

• Silo No. 3 residential apartments remain popular and

in demand

• 80% of the 79 units have been sold

MUSEUM & ART

39 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion V&A Waterfront

PROPERTY INVESTMENT ACTIVITIES

• R420,0m

R483,0m

ACQUISITIONS DISPOSALS DEVELOPMENTS & CAPITAL EXPENDITURE COMMITMENTS

Excludes R77,5m development expenditure spent on Silo 3 which is classified as inventory

PORTFOLIO UPDATE

GOZ

Dorcas Street, Melbourne, VIC

41 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion GOZ

GOZ PORTFOLIO OVERVIEW

FY14 FY15 FY16 Office Industrial FY14 FY15 FY16 Office Industrial FY14 FY15 FY16 Office Industrial

NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE

R1 631m R1 421m R1 913m 53 51 58 R22 024m R20 859m R30 938m 47.4% 49.4% 48.5% 52.6% 50.6% 51.5% 31.4% 67.9% 32.1% 68.6% 34.5% 65.5% 49.9% 49.8% 50.2% 50.1% 55.9% 44.1%

42 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion GOZ

KEY PERFORMANCE INDICATORS

FY16 FY15

Vacancies (%) (1) 1.0 3.0 Total arrears (Rm) 4,7 0,4 Provision for bad debts (B/S) (Rm)

• Renewal success rate (%)

96.0 32.1 Total letting success rate (%) 93.3 64.8 Weighted average renewal growth (%) (0.5) 3.0 Weighted average future escalations on renewals (%) (2) 4.0 3.9 Number of employees 17 14 Net property income per employee (R) 112 529 412 116 500 000

• 1. Measurements and ratios are based on income and not GLA (when compared to RSA).
• 2. Weighted average escalation on entire portfolio WARR 3.1%

Atlantic Drive, Keysborough, VIC

43 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion GOZ

OPERATIONAL REVIEW

SHARE- HOLDER RETURN

• 7.4% total security holder return for FY16
• FY16 distribution guidance achieved, total of

AUD20.5 cents

• 7.7% increase in NTAV per stapled security
• ver FY15

GROWING PORTFOLIO

• AUD314,3m property acquisitions during FY16
• 5.5% uplift in like-for-like property values

SOLID PROPERTY FUNDAMEN- TALS

• Quality tenants, diversified across office and

industrial sectors, located in every Australian state and the ACT

• 6.9 years WALE and 1% vacancy with limited

lease expiry risk in the short term

PRUDENT CAPITAL MANAGE- MENT

• LTV of 42.6%
• 65% debt fixed or hedged with an average

maturity of 5.7 years

• All in cost of debt of 4.1%
• 4.2 years weighted average maturity of debt
• AUD250m DCM issuance for seven years at an

all in cost of 4.46% pa

LEASING

• 78.5% tenant retention (by income)
• Over 59 000m² of leasing was completed in FY16

44 Strategy & Highlights Financial Results Capital Management PORTFOLIO UPDATE Conclusion GOZ

PROPERTY INVESTMENT ACTIVITIES

ACQUISITIONS DISPOSALS DEVELOPMENTS & CAPITAL EXPENDITURE COMMITMENTS

R3,4bn

• R441,3m

R496,7m

CONCLUSION

Midrand Central Business Park, Midrand

Value 5

LOOKING FORWARD

South Africa V&A Waterfront

• Stable, but weakening property fundamentals
• Weak macro with limited opportunities for growth
• Looming debt downgrade
• Strategy to diversify the non-SA contribution to distributable

income through our internationalisation aspirations

• Introduction of a funds management business
• Optimisation of existing portfolio
• Exploring trading and development opportunities
• Strong property fundamentals
• Continued growth; benefiting from the

weaker rand

• Development pipeline in the Silo and

Canal districts converting into revenue generating investments

• Good development pipeline and exploring

ways to acquire additional bulk

LOOKING FORWARD

GOZ

DIVIDEND GUIDANCE

• Stable property fundamentals
• Macro intact despite reliance on commodities
• Positive funding yield spread dynamic
• Deep understanding of the Australian property market
• Continue to pursue opportunities for growth:
• Dorcas street acquisition
• GPT Metro Office Fund take over

Dividend growth for FY17 should be similar to that achieved for FY16

THANK YOU

Illovo Sugar, Umhlanga

ANNEXURES

Eastgate, Sandton

50

ANNEXURE CONTENTS

Growthpoint’s property portfolio Property investment activities Expense to income ratios (Gross) Loan exposure per financier RSA Debt expiry profile per financier RSA Fixed interest rate expiry profile RSA Wealth created & distributed to stakeholders Shares issued & beneficial shareholders holding >2% at FY16 Split of RSA property portfolio Acquisitions RSA Disposals RSA Developments & Capital Expenditure RSA Commitments RSA Non-current assets held for sale RSA Retail overview RSA 01 02 03 04 05 06 07 08 09 10 11 12 13 14

The Towers, Sandton

15

51

ANNEXURE CONTENTS

Office overview RSA Industrial overview RSA GLA & vacancy reconciliation RSA Split of V&A Waterfront property portfolio Developments & commitments V&A Waterfront (50%) Net property & distributable income analysis V&A Waterfront (50%) V&A Waterfront overview GLA & vacancy reconciliation V&A Waterfront (50%) Split of GOZ property portfolio Acquisitions GOZ Developments & commitments GOZ Non-current assets held for sale GOZ Net property income analysis GOZ GOZ overview GLA & vacancy reconciliation GOZ 16 17 18 19 20 21 22 23 24 25 26 27

Den Anker, V&A Waterfront

28 29 30

52

ANNEXURE 01: GROWTHPOINT’S PROPERTY PORTFOLIO

RETAIL OFFICE INDUSTRIAL RSA TOTAL GOZ (1) (3) V&A (1)

Number of properties 58 182 227 467 58 1 GLA (m²) 1 420 570 1 799 391 2 251 089 5 471 050 1 109 545 206 838 Vacancy (m²) 36 422 140 728 134 409 311 559 3 850 2 993 Vacancy (%) 2.6 7.8 6.0 5.7 1.0 1.4 Valuation (Rm) 29 210 33 257 11 285 73 752 30 938 7 766 Value per m² (excl. bulk) 20 541 17 533 4 682 13 026 27 883 34 147 Average gross rental (per m²/month) (R) 166.1 138.6 46.8 108.0 AUD198.0 (2) 214.0 Forward yield (%) 7.8 8.3 9.7 8.3 7.3 7.5 Average in force escalations (%) 7.3 8.1 8.4 7.8 3.1 8.0 Weighted average lease period (years): By gross rental 3.2 3.6 3.1 3.4 6.9 8.0 Renewal success rate (%) 89.3 61.4 63.5 68.7 96.0 82.3 Total letting success rate (%) 89.2 74.1 84.9 82.4 93.3 90.3 Weighted average renewal growth (%) 5.9 (3.5) 0.5 1.1 (0.5) 6.0 Weighted average future escalations on renewals (%) 7.4 8.2 8.4 7.8 4.0 8.0

• 1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%.
• 2. Based on net rental per annum.
• 3. Measurements and ratios are based on income and not GLA (when compared to RSA).

53

ANNEXURE 02: PROPERTY INVESTMENT ACTIVITIES

ANNEXURES RETAIL Rm OFFICE Rm INDUSTRIAL Rm RSA TOTAL Rm GOZ(1) Rm TOTAL Rm V&A(1) Rm Opening balance – 1 July 2015 28 213 32 901 10 436 71 550 22 024 93 574 6 761 Purchase price of acquisitions 10,25

• 398

442 840 3 410 4 250

• Selling price of disposals

11

• (887)

(242) (1 129)

• (1 129)
• Developments and capex

12,20,26 549 1 302 543 2 394 441 2 835 420 Fair value adjustment 448 (457) 106 97 1 115 1 212 585 Foreign currency translation

• 3 948

3 948

• Total

29 210 33 257 11 285 73 752 30 938 104 690 7 766 Long-term property assets 29 210 33 112 11 166 73 488 29 264 102 752 7 766 Classified as held for sale 14,27

• 145

119 264 1 674 1 938

• Commitments

13,20,26 428 1 158 162 1 747 497 2 244 483

• 1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%.

54

ANNEXURE 03: EXPENSE TO INCOME RATIOS (GROSS)*

35.9% 35.0% 36.2% 3.2% 3.2% 2.3%

FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio

32.1% 33.2% 34.0% 3.1% 2.7% 2.9%

FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio

13.4% 12.6% 13.0% 5.2% 4.3% 4.7%

FY14 FY15 FY16 Operating Expense Ratio Property Expense Ratio

SOUTH AFRICA V&A WATERFRONT GOZ 38.2% 39.1% 38.5% 35.9% 35.2% 36.9% 16.9% 18.6% 17.7%

*This ratio is presented where expense recoveries have been reclassified as revenue as per SA Reit Association Best Practice guidance.

55

ANNEXURE 04: LOAN EXPOSURE PER FINANCIER RSA

Nedbank 24% RMB 24% Standard Bank 16% JSE (Corporate Bonds) 15% OMSFIN 7% LibFin 5% Investec 5% ABSA 3% China Construction Bank 1%

56

ANNEXURE 05: DEBT EXPIRY PROFILE PER FINANCIER RSA

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 ABSA China Construction Investec JSE (Corporate Bonds) LibFin Nedbank Omsfin RMB Standard Bank

19% 19% 19% 18% 12% 6% 0% 7%

57

ANNEXURE 06: FIXED INTEREST RATE EXPIRY PROFILE RSA

13% 8% 14% 15% 11% 26% 9% 0% 4%

0% 5% 10% 15% 20% 25% 30% Floating FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

58

ANNEXURE 07: WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS*

418 463 625 3 497 4 232 5 072 293 329 450 1802 2 215 2 710 602 747 941 40 74 418

1 500 3 000 4 500 6 000 7 500 9 000 10 500

FY14 FY15 FY16 Employees Shareholders Minority interest holders Providers of debt Governments - direct taxes Reinvested in the Group

R8 060m R6 652m R10 216m

9.3% 27.5% 4.1% 52.5% 5.7% 9.2% 26.5% 4.4% 49.7% 6.1%

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

9.0% 27.1% 4.4% 52.6% 6.3%

Rm

0.6% 0.9% 4.1%

59

ANNEXURE 08: SHARES ISSUED & BENEFICIAL SHAREHOLDERS HOLDING >2% AT FY16

SHARES

Opening balance 1 July 2015 2 711 056 264 Shares issued for acquisition (September 2015) 1 061 312 Dividend reinvestment (September 2015) 19 309 956 Dividend reinvestment (March 2016) 52 272 973 Shares issued for acquisition (April 2016) 2 392 861 Closing balance 30 June 2016 2 786 093 366 Treasury shares held for staff share scheme (28 529 523) Shares in issue (net of treasury shares) 2 757 563 843

% HOLDING SHARES HELD

Government Employees Pension Fund 12.4 344 714 339 Southern Palace Properties (Pty) Ltd 5.8 160 942 921 Stanlib Asset Management Ltd 4.4 122 461 748 Old Mutual Group 4.2 117 265 071 Investec Asset Management (Pty) Ltd 3.5 97 262 457 Coronation Fund Managers Ltd 3.3 91 696 607 The Vanguard Group 3.1 85 936 806 BEE Consortium 2.8 77 666 667 Investment Solutions Ltd 2.6 73 267 280 Eskom Pension & Provident Fund 2.5 68 434 964 Sanlam Investment Management 2.0 55 336 252 Total shareholders holding >2% 46.6 1 294 985 112 Other 53.4 1 491 108 254 Total 100.0 2 786 093 366 Foreign shareholding: 27.2% of institutional ownership and 21.3% of total shares issued

60

ANNEXURE 09: SPLIT OF RSA PROPERTY PORTFOLIO

VALUE GLA VALUE GLA

Retail 40% Office 45% Industrial 15% Retail 26% Office 33% Industrial 41%

Greater JHB 56% Western Cape 21% Pretoria 8% KwaZulu-Natal 8% Eastern Cape 4% North West 2% Other 1% Greater JHB 59% Western Cape 20% Pretoria 5% KwaZulu-Natal 11% Eastern Cape 3% North West 1% Other 1%

61

ANNEXURE 10: ACQUISITIONS RSA

ACQUISITIONS SECTOR PURCHASE PRICE Rm YIELD

Samrand development, Midrand Industrial 340,3 Land Pinmill Farm (50%), Sandton, Johannesburg Office 177,5 8.7% 33 Fricker Road, Illovo, Sandton, Johannesburg Office 115,2 8.5% Paul Smit Anderbolt, Boksburg, Johannesburg Industrial 59,0 11.1% 4 Pencarrow, Umhlanga Ridge, Durban Office 41,0 8.8% 35 & 37 Wierda Road West, Wierda Valley, Sandton, Johannesburg Office 36,1 8.6% 3 Spartan Crescent, Eastgate, Sandton, Johannesburg Industrial 30,0 9.8% 35 Impala Road, Sandton, Johannesburg Office 28,0 6.8% 57 on Gibson, Aeroton, Johannesburg Industrial 13,4 7.7% TOTAL 840,5

62

ANNEXURE 11: DISPOSALS RSA

DISPOSALS SECTOR SELLING PRICE Rm PROFIT/(LOSS) ON COST Rm PROFIT/(LOSS) ON BOOK VALUE Rm YIELD

Discovery Head Office (45%), Sandhurst, Sandton, Johannesburg Office 462,5

• n/a

Fairview Office Park, Greenacres, Port Elizabeth Office 112,5 56,5 (0,5) 11.6% Greenacres Office Park, Newton Park, Port Elizabeth Office 107,0 48,7 0,1 8.3% 132 Jan Smuts Avenue, Sandton, Johannesburg Office 91,0 (10,5)

• 9.3%

JD Group Warehouse, Germiston, Johannesburg Industrial 70,0 42,3

• 7.0%

Gazelle, Midrand Industrial 38,0 16,5 4,0 7.6% Laser Clayville, Midrand Industrial 36,0 22,0 0,1 11.5% BCX - Port Elizabeth, Newton Park, Port Elizabeth Office 36,0 (9,9)

• 6.0%

Garfield, Alberton, Johannesburg Industrial 30,0 14,3

• 7.6%

The Crescent, Sunninghill, Johannesburg Office 28,5 (1,7) (1,6) 10.5% 29 West Street, Houghton, Johannesburg Office 25,9 11,2

• 7.7%

4 Halifax Road, Pinetown, Durban Industrial 23,8 5,9 (0,3) 9.1% 31 West Street, Houghton, Johannesburg Office 22,1 3,8

• 7.7%

Linus, Parow, Cape Town Industrial 20,5 6,7

• 11.6%

Laser New Brighton, New Brighton, Port Elizabeth Industrial 13,8 9,0 (0,4) 33.0% Laser Silvertondale, Silvertondale, Pretoria Industrial 9,5 5,6

• 7.8%

Woodstock, Cape Town Office 2,0 (0,7) 0,2 9.0% TOTAL 1 129,1 219,7 1,6

63

• 1. The average yield for developments is 8.0% - 9.0% on a fully let basis.

ANNEXURE 12: DEVELOPMENTS & CAPITAL EXPENDITURE RSA

DEVELOPMENTS & CAPITAL EXPENDITURE (1) SECTOR ESTIMATED COMPLETION DATE FY16 Rm

Vaal Mall (77.9%), Vanderbijlpark, Johannesburg Retail Dec 2016 142,3 Greenacres, Greenacres, Port Elizabeth Retail Jul 2017 117,1 KeyWest Shopping Centre, Krugersdorp, Johannesburg Retail Nov 2016 38,8 Fourways Crossing (50%), Fourways, Johannesburg Retail Jun 2016 36,5 Other, below R30m Retail 214,2 Discovery Head Office (55%), Sandhurst, Sandton Office Dec 2017 497,0 Anslow Phase 2, Bryanston, Sandton Office July 2016 127,9 The Boulevard, Umhlanga, Durban Office Apr 2016 97,3 Golf Park, Mowbray, Cape Town Office Jul 2016 67,0 Ridgeview, Umhlanga Ridge, Durban Office Dec 2015 63,9 Bridgepark, Century City, Cape Town Office Jun 2015 46,9 Other, below R30m Office 402,4 Greenfield Industrial Park, Airport Industrial, Cape Town Industrial Mar 2016 98,0 Isobar, Isando, Kempton Park, Johannesburg Industrial Sep 2015 58,4 Midrand Central Business Park 518, Midrand Industrial Nov 2016 38,2 Hilltop Industrial Park, Elandsfontein, Johannesburg Industrial Jul 2015 36,3 Monte Carlo, New Germany, Pinetown, Durban Industrial Feb 2016 32,6 Other, below R30m Industrial 279,5 TOTAL 2 394,3 DEVELOPMENT EXPENDITURE 1433,3 CAPITAL EXPENDITURE 961,0

64

ANNEXURE 13: COMMITMENTS RSA

COMMITMENTS SECTOR ESTIMATED COMPLETION DATE FY16 Rm

Developments (1) 1 696,6 Vaal Mall (77.9%), Vanderbijlpark, Johannesburg Retail Dec 2016 124,3 Greenacres, Greenacres, Port Elizabeth Retail Jul 2017 218,3 River Square Shopping Centre, Three Rivers, Vereeniging Retail Nov 2016 65,8 Discovery Head Office (55%), Sandhurst, Sandton Office Dec 2017 1 068,1 Dominic Corner, Boksburg Industrial Jun 2017 53,2 M1 Place, Eastgate, Sandton Industrial Nov 2016 44,1 Other below R30,0m Various Various 122,8 Acquisitions 50,7 Below R30,0m Various 50,7 TOTAL 1 747,3

• 1. The average yield for developments is 8.0% - 9.0% on a fully let basis.

65

ANNEXURE 14: NON-CURRENT ASSETS HELD FOR SALE RSA

PROPERTIES HELD FOR SALE SECTOR FY16 Rm

16 Fricker Road, Illovo, Sandton, Johannesburg Office 61,4 295 Florida Road, Morningside, Durban Office 29,4 Bremerton, Newton Park, Port Elizabeth Office 54,0 Laser Isipingo, Isipingo, Durban Industrial 40,5 Osram, Randjespark, Midrand Industrial 23,8 Redwood, Roodekop, Germiston Industrial 55,0 TOTAL RSA 264,1

66

ANNEXURE 15: RETAIL OVERVIEW RSA

TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m²

Brooklyn Mall and Design Square (75%), Brooklyn, Pretoria 2 262 55 940 Festival Mall, Kempton Park, Johannesburg 1 580 83 617 Waterfall Mall, Rustenburg 1 448 49 106 Vaal Mall (77.9%), Vanderbijlpark, Johannesburg 1 395 43 505 Lakeside Mall, Benoni, Johannesburg 1 384 65 340 Greenacres, Greenacres, Port Elizabeth 1 303 43 925 Bayside Mall, Table View, Cape Town 1 233 45 745 La Lucia Mall, La Lucia, Durban 1 189 37 280 Kolonnade (50%), Montana Park, Pretoria 1 110 38 101 The Constantia Village, Constantia, Cape Town 1 054 20 351 Sub Total 13 958 482 910 Balance of the sector 15 252 937 660 TOTAL FOR THE SECTOR 29 210 1 420 570

LEASE EXPIRY (% OF GLA) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)

12.8 15.2 16.2 15.5 16.6 15.4 5.7 2.6

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Monthly Vacant

8.3 15.2 14.0 18.5 19.2 16.9 5.6 2.3

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Monthly Vacant

• 1. Ranked in terms of gross monthly rental.

TOP 10 TENANTS GLA(1) m²

Edcon Holdings Ltd 128 757 The Foschini Group Ltd 57 411 Shoprite Holdings Ltd 142 744 Mr Price Group Ltd 56 465 Pick ‘n Pay Stores Ltd 116 052 Pepkor Holdings Ltd 50 976 Truworths International Ltd 33 955 Massmart Holdings Ltd 66 589 Woolworths Holdings Ltd 86 988 Clicks Group Ltd 27 567 Sub Total 767 504 Balance of the sector 616 644 TOTAL FOR THE SECTOR (excluding vacancies) 1 384 148

67

ANNEXURE 16: OFFICE OVERVIEW RSA

TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m²

Investec, 100 Grayston Drive, Sandton, Johannesburg 2 223 70 945 The Woodlands, Woodmead, Johannesburg 2 010 119 261 The Place, Sandton, Johannesburg 1 019 34 669 Constantia Office Park, Roodepoort, Johannesburg 1 018 72 451 Inanda Greens, Wierda Valley, Sandton, Johannesburg 910 40 774 Harrowdene Office Park, Woodmead, Johannesburg 833 43 923 Growthpoint Business Park, Midrand 602 70 201 MontClare Place, Claremont, Cape Town 569 29 453 Turbine Square Hall, Newtown, Johannesburg 513 22 796 Country Club Estate, Woodmead, Johannesburg 500 33 142 Sub Total 10 197 537 615 Balance of the sector 23 060 1 261 776 TOTAL FOR THE SECTOR 33 257 1 799 391

TOP 10 TENANTS GLA(1) m²

Investec Bank Ltd 83 781 Deloitte (South Africa) 46 439 Transnet 33 273 Absa Bank Ltd 39 187 Netcare Ltd 17 867 Telkom Ltd 36 093 EOH Holdings Ltd 27 849 Anglogold Ashanti Ltd 19 381 MTN Group Ltd 19 669 Hatch Goba (Pty) Ltd 21 320 Sub Total 344 859 Balance of the sector 1 313 804 TOTAL FOR THE SECTOR (excluding vacancies) 1 658 663

LEASE EXPIRY (% OF GLA) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)

16.4 9.7 10.1 15.4 16.5 19.2 4.9 7.8

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Monthly Vacant

19.9 9.1 11.3 14.7 16.2 18.8 4.6 5.4

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Monthly Vacant

• 1. Ranked in terms of gross monthly rental.

68

ANNEXURE 17: INDUSTRIAL OVERVIEW RSA

TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m²

Growthpoint Industrial Estate, Meadowdale, Germiston 404 61 246 Hilltop Industrial Estate, Elandsfontein, Johannesburg 342 76 283 Montague Business Park (25%), Montague Gardens, Cape Town 320 28 635 Isobar, Isando, Kempton Park, Johannesburg 216 47 194 Adcock Ingram, Midrand 209 21 536 Rivonia Crossing 2, Sunninghill, Sandton 192 19 778 Omni Park, Aeroton, Johannesburg 190 41 331 N1 Business Park (20%), Midrand 177 19 597 Central Park - Cape Town, Elsiesrivier, Cape Town 163 49 135 Greenfield Industrial Park, Airport Industrial, Cape Town 155 21 815 Sub Total 2 568 386 550 Balance of the sector 8 717 1 864 539 TOTAL FOR THE SECTOR 11 285 2 251 089

TOP 10 TENANTS GLA(1) m²

The Bidvest Group Ltd 52 329 Adcock Ingram Holdings Ltd 27 280 Scania SA (Pty) Ltd 23 341 Consolidated Steel Industries (Pty) Ltd 47 193 Distell Ltd 45 658 Allied Electronic Corporation Ltd 28 008 Imperial Group Ltd 23 482 Pioneer Foods Ltd 20 122 Barloworld Ltd 18 516 Avon Justine (Pty) Ltd 16 239 Sub Total 302 168 Balance of the sector 1 814 512 TOTAL FOR THE SECTOR (excluding vacancies) 2 116 680

LEASE EXPIRY (% OF GLA) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)

14.6 7.8 6.7 20.2 15.8 23.2 5.7 6.0

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Monthly Vacant

14.0 8.3 7.3 21.8 17.0 21.6 5.0 5.0

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Monthly Vacant

• 1. Ranked in terms of gross monthly rental.

69

ANNEXURE 18: GLA & VACANCY RECONCILIATION RSA

TOTAL GLA m² VACANT AREA m² VACANCY % Balance as at 1 July 2015 5 425 964 307 693 5.7 GLA adjustments 35 333 5 976 Disposals (119 866) (9 645) Acquisitions 57 510 32 344 Developments and extensions 72 109 Leases expired in the period (1) 1 224 070 Renewals of expired leases (2) (840 708) New letting of vacant space (555 111) Leases terminated 142 940 Balance as at 30 June 2016 5 471 050 311 559 5.7

• 1. 22.6% of opening balance GLA expired during the year under review (FY15: 19.7%).
• 2. Retention % of 68.7% compared to 65.5% for the year to FY15.

70

ANNEXURE 19: SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO

PROPERTY PORTFOLIO BY VALUE PROPERTY PORTFOLIO BY GLA DEVELOPED VS. UNDEVELOPED BY VALUE NET PROPERTY INCOME

Retail 53% Office 24% Hotel & Residential 11% Fishing & Industrial 6% Bulk 6% Retail 23% Office 25% Hotel & Residential 24% Fishing & Industrial 28% Retail 54% Office 19% Hotel & Residential 18% Fishing & Industrial 9% Undeveloped 6% Developed 94%

71

ANNEXURE 20: DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%)

SECTOR ESTIMATED COMPLETION FY16 Rm Developments and Capital Expenditure (1) No.5 Silo — PwC and Werksmans Office Jul 2016 126,0 Grain Silo — Zeitz MOCAA and The Silo Hotel Office & Hotel Dec 2016 82,0 Waterway House (BAT , EY & Ferrari) Office & Retail Mar 2017 58,0 No.6 Silo — Radisson Red Hotel Hotel Jun 2017 37,0 Operational capital expenditure Retail Various 31,0 Other below R30,0m Various Various 86,0 Total 420,0 Commitments No.6 Silo — Radisson Red Hotel Hotel Jun 2016 140,3 Waterway House (BAT , EY & Ferrari) Office & Retail Mar 2017 123,2 No.3 Silo — Residential for sale (2) Residential Mar 2017 102,0 Grain Silo — Zeitz MOCAA and The Silo Hotel Office & Hotel Dec 2016 38,6 Other below R100,0m Various Various 78,9 Total 483,0

• 1. The average yield for developments is 7.0% - 9.0% on a fully let basis.
• 2. Classified as inventory; R77,5m development expenditure spent in FY16.

72

ANNEXURE 21: NET PROPERTY & DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%)

FY16 Rm FY15 Rm INCREASE/ (DECREASE) Gross property revenue 639 553 15.6% Property expenses (177) (154) 14.9% Net property income 462 399 15.8% Other operating expenses (20) (16) 25.0% Net finance (costs)/income (11) (20) (45.0%) Other non-distributable amounts (2) 5 (140.0%) Distributable income 429 368 16.6% Adjustments (33) (13) Breakwater (9) (1) H&M and Hamleys (15)

• Other developments

(9) (12) Adjusted “like-for-like” distributable income 396 355 11.5%

73

ANNEXURE 22: V&A WATERFRONT OVERVIEW

TOP 10 TENANTS (100%) GLA(1) m²

Allan Gray (Pty) Ltd 18 499 Nedbank Group Ltd 25 433 Legacy Hotels 16 226 Edcon Holdings Ltd 7 518 Tourvest Holdings (Pty) Ltd 3 318 Sun International Hotels 17 100 Newmark Hotels 7 563 Woolworths Holdings Ltd 7 682 The Foschini Group Ltd 3 013 National Department of Public Works 14 601

Subtotal 120 953 Balance of V&A 286 737 Total for V&A Waterfront (excluding vacancies) (100%) 407 690

38.0 2.0 5.0 10.0 17.0 27.0 1.0

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Vacant

LEASE EXPIRY (% OF GLA)

33.0 3.0 6.0 16.0 17.0 25.0 0.0

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Vacant

LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)

• 1. Ranked in terms of gross monthly rental.

74

ANNEXURE 23: GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%)

TOTAL GLA m2 VACANT AREA m2 VACANCY %

Balance as at 1 July 2015 202 658 5 238 2.6% GLA adjustments 727 720 Developments and extensions 3 453 3 069 Leases expired in the period (1) 20 407 Renewals of expired leases (2) (16 792) New letting of vacant space (10 923) Leases terminated 1 274 Balance as at 30 June 2016 206 838 2 993 1.4%

• 1. 10.1% of opening balance GLA expired during the year under review (FY15: 5.0%).
• 2. Retention % of 82.3% compared to 92.7% for the year to FY15.

75

ANNEXURE 24: SPLIT OF GOZ PROPERTY PORTFOLIO

VALUE GLA VALUE GLA

Office 56% Industrial 44%

Queensland 27% Victoria 35% South Australia 7% New South Wales 20% Western Australia 5% ACT 5% Tasmania 1%

Office 21% Industrial 79%

Queensland 17% Victoria 52% South Australia 11% New South Wales 10% Western Australia 7% ACT 2% Tasmania 1%

76

ANNEXURE 25: ACQUISITIONS GOZ

SECTOR PURCHASE PRICE Rm PURCHASE PRICE(1) AUDm ACQUISITIONS 1-3 Pope Court, Beverley, South Australia Industrial 203,0 22,3 34 Reddalls Road, Kembla Grange, New South Wales Industrial 212,4 21,6 Building C, 211 Wellington Road, Mulgrave, Victoria Office 218,7 21,4 255 London Circuit, Canberra, Australian Capital Territory Office 849,9 73,7 75 Dorcas Street, South Melbourne, Victoria Office 1 925,9 175,3 TOTAL 3 409,9 314,3

• 1. Purchase price is at acquisition date excluding revaluation and development expenditure.

77

ANNEXURE 26: DEVELOPMENTS & COMMITMENTS GOZ

SECTOR ESTIMATED COMPLETION DATE FY16 Rm FY16 AUDm DEVELOPMENTS AND CAPITAL EXPENDITURE Building B, 211 Wellington Road, Mulgrave, Victoria Office Dec 2015 286,3 28,3 Other Various 155,0 12,2 TOTAL 441,3 40,5 COMMITMENTS Building C, 211 Wellington Road, Mulgrave, Victoria Office Sep 2016 331,1 30,0 Other Various 165,6 15,0 TOTAL 496,7 45,0

78

ANNEXURE 27: NON-CURRENT ASSETS HELD FOR SALE GOZ

PROPERTIES HELD FOR SALE SECTOR FY16 Rm FY16 AUDm 28 Bilston Drive, Wodonga, Victoria Industrial 763,8 69,2 99 and 101-103 William Angliss Drive, Laverton North, Victoria Industrial 305,8 27,7 213-215 Robinsons Road, Ravenhall, Victoria Industrial 298,0 27,0 365 Fitzgerald Road, Derrimut, Victoria Industrial 196,5 17,8 670 Macarthur Avenue, Pinkenba, Queensland Industrial 109,4 9,9 TOTAL 1 673,5 151,6

79

ANNEXURE 28: NET PROPERTY INCOME ANALYSIS GOZ

FY16 AUDm FY15 AUDm INCREASE / (DECREASE) Gross property revenue 208,6 197,2 5.8% Property expenses (27,5) (25,4) 8.3% Net property income 181,1 171,8 5.4% Adjustments (12,2) (1,1) Acquisitions and developments (12,2) (0,5) Disposals

• (0,6)

Adjusted “like-for-like” net property income 168,9 170,7 (1.1%) Office 82,6 87,0 (5.1%) Industrial 86,3 83,7 3.1%

80

ANNEXURE 29: GOZ OVERVIEW

TOP 10 PROPERTIES BY VALUE FAIR VALUE Rm GLA m²

1 Charles Street, Parramatta, NSW 3 091 32 356 70 Distribution Street, Larapinta, QLD 2 216 76 109 75 Dorcas Street, South Melbourne, VIC 1 832 23 811 20 Colquhoun Road, Perth Airport, WA 1 612 80 374 Building C, 219 - 247 Pacific Highway, Artarmon, NSW 1 225 14 496 1231-1241 Sandgate Road, Nundah, QLD 1 142 12 980 333 Ann Street, Brisbane, QLD 1 131 16 457 CB1, 22 Cordelia Street, South Brisbane, QLD 1 021 11 529 10-12 Mort Street, Canberra, ACT 966 15 398 572-576 Swan Street (Building 2), Richmond, VIC 905 14 660 Sub Total 15 141 298 170 Balance of GOZ 15 797 811 375 TOTAL FOR GOZ 30 938 1 109 545

TOP 10 TENANTS GLA(1) m²

Woolworths 407 625 NSW Police Department 32 356 Commonwealth of Australia 24 370 GE Capital Finance Australasia 24 910 Linfox 58 077 Jacobs Group 9 522 Energex 8 754 Australia and New Zealand Banking Group 13 744 Fox Sports 8 092 Star Track 44 424 Sub Total 631 874 Balance of GOZ 473 821 TOTAL FOR GOZ (excluding vacancies) 1 105 695

LEASE EXPIRY (% OF INCOME)

73.0 6.0 11.0 2.0 4.0 3.0 1.0

FY22 and beyond By FY21 By FY20 By FY19 By FY18 By FY17 Vacant

• 1. Ranked in terms of gross monthly rental.

81

ANNEXURE 30: GLA & VACANCY RECONCILIATION GOZ

TOTAL GLA m2 VACANCY(1) %

Balance as at 1 July 2015 1 050 611 3.0 GLA adjustments 1 042 Disposals

• Acquisitions, developments and extensions

57 892 Balance as at 30 June 2016 1 109 545 1.0

• 1. Vacancy ratio is based on income and not GLA (when compared to RSA).

THANK YOU

The Place, Sandton