ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2017 AGENDA - PowerPoint PPT Presentation

ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2017

AGENDA Milestones & Highlights 01 Financial Results 02 Capital Management South Africa 03 V&A Waterfront Portfolio Update 04 GOZ Property Investment & Development 05 Globalworth Conclusion 06 Annexures 07 Oxford Corner, Rosebank 2

MILESTONES & HIGHLIGHTS M1 Place, Eastgate, Sandton

▪ Good progress implementing strategic initiatives, including Internationalisation, Funds Management and Trading and Development MILESTONES V&A Waterfront South Africa ▪ Gross monthly billings in excess of R1bn ▪ Completion of Silo Precinct scheduled for ▪ Sale of Harrowdene to Huawei for R846m September when the ▪ First Trading Profit and Development Fee Zeitz MOCAA and income earned Radisson Red Hotel opens ▪ 1 399 222m² of space let in FY17 4

Australia ▪ Successful acquisition of AUD440.3m GPT Metro Office Fund (GMF) ▪ Significant portfolio reweighting through AUD480m office asset purchases and AUD166m strategic industrial asset sales: - Office 66% vs. 56% at FY16 - Geographically to New South Wales 26% from 20% at FY16 Eastern Europe Funds management ▪ Successful EUR186.4m ▪ R2.3bn Healthcare Fund established with 5 acquisition of 26.9% of assets Globalworth Real Estate ▪ Capital raise to third parties scheduled for Investments (GWI) HY18 ▪ Further acquisitions and developments in the pipeline 5

Open JV (50/50) ▪ Strategic venture aligning ourselves with the co-working, flexible office trend ▪ Anticipated rollout of 8 locations in 3 years, with 138 West Street Sandton just opened ▪ Open will operate the sites and GRT will provide the funding ▪ Incubator for thriving businesses and tomorrows office users Delivering on our strategic initiatives in line with our vision: To be a leading international property company providing space to thrive 6

195.8 cents ▪ 6.5% growth in total FY17 dividend per share PERFORMANCE ▪ Final dividend of 100.8c up 6.9% compared to FY16 final dividend of 94.3c HIGHLIGHTS R5.6bn R122.3bn ▪ Total distributable income ▪ Group property assets ▪ 10.4% growth FY16 to FY17 7

27.1% 35.0% Group LTV ▪ RSA total expense ▪ Gearing remains below 40% to income ratio ▪ Increased from 33.7% at FY16 ▪ Expenses under control Total RSA arrears – R60.4m Vacancies – 4.4% ▪ Well contained ▪ RSA vacancies improved from 5.7% at FY16 ▪ 6.5% of collectables ▪ Strong focus on tenant retention ▪ R13.2m bad debt write and leasing off (I/S) 8

▪ Largest South African primary listed REIT ▪ 21 st largest company in the FTSE/JSE Top 40 Index ▪ Gross market capitalisation R70.7bn COMPANY ▪ Liquid and tradeable: HIGHLIGHTS - R3.8bn average value of shares traded per month ▪ 8 th year inclusion in FTSE/JSE Responsible Index ▪ 1 st year inclusion in the FTSE4Good Emerging Index ▪ Top 10 constituent of FTSE EPRA/NAREIT Emerging Index Investment proposition ▪ Sustainable quality of earnings ▪ 14 year track record of uninterrupted dividend growth ▪ Underpinned by high-quality physical property assets ▪ Diversified across international geographies and sectors ▪ Dynamic and proven management track record ▪ Best practice corporate governance ▪ Transparent reporting ▪ Level 3 BEE contributor 9

GROWTH IN DIVIDEND PER SHARE (cents) Growth 8.3% 7.5% 6.0% 6.5% 6.5% 195.8 183.8 173.4 161.3 149.0 44.5 100.8 94.3 82.8 76.3 44.5 95.0 89.5 84.4 78.5 72.7 FY13 FY14 FY15 FY16 FY17 Interim dividend Special dividend Final dividend The Place, Sandhurst, Sandton 10

GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION Rbn cents 135 3 000 3 000 120 2 510c 2 500 2 500 2 448c 105 90 2 000 2 000 75 1 500 1 500 60 45 1 000 1 000 30 500 500 15 0 0 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share (cents) 11

LONG BOND YIELD VS. GRT FORWARD YIELD Long Bond GRT Forward Yield 11% 10% 9% 8.80% 8.18% 8% 7% 6% 5% 4% 2012/01/12 2012/07/12 2013/01/12 2013/07/12 2014/01/12 2014/07/12 2015/01/12 2015/07/12 2016/01/12 2016/07/12 2017/01/12 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Greencourt “A” & “B”, Bucharest, Romania 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 12

FINANCIAL RESULTS Waterway House, V&A Waterfront

CONSOLIDATED DISTRIBUTION CALCULATION FY17 FY16 INCREASE/ Rm Rm (DECREASE) Gross property income 10 716 9 764 9.8% RSA (1) 8 079 7 589 6.5% GOZ 2 637 2 175 21.2% Property expenses (2 245) (2 126) 5.6% RSA (1 901) (1 864) 2.0% GOZ (344) (262) 31.3% Net property income 8 471 7 638 10.9% Other operating expenses (416) (308) 35.1% RSA (289) (204) 41.7% GOZ (127) (104) 22.1% Net property income after operating expenses 8 055 7 330 9.9% Finance costs (2 510) (2 466) 1.8% RSA (1 944) (1 989) (2.3%) GOZ (566) (477) 18.7% Finance income 789 760 3.8% Investment income from V&A Waterfront 479 429 11.7% Investment income from GWI 78 - 100% Other finance income (2) 232 331 (29.9%) (552) Adjustment for NCI, foreign exchange profit /(loss) and normal taxation (734) 33.0% Distributable income 5 600 5 072 10.4% Dividend for the period 5 600 5 072 10.4% 1. Trading Profits and Development Fees of R91m included in revenue. 2. Includes R52m (FY16: R39m) dividends received on treasury shares held, R45m (FY16: R31m) antecedent dividend, R0m (FY16: R22m) distribution from Stenham and R45m (FY16: R50m) interest on V&A Waterfront development funding. 14 * Average exchange rate at R10.26/AUD (FY16: R10.57/AUD) for GOZ.

Distributable income growth of 10.4% ▪ Steady contribution from South Africa ▪ First inclusion of Trading Profit and Development Fee income INCOME ▪ Solid contribution from the V&A, growth has slowed down as the STATEMENT base has grown ▪ Stable contribution from GOZ due to additional investment of 48.8m shares but earnings impacted negatively due to the higher expected (9.7%) and actual withholding tax rates (9.7% at HY17 vs. 6.9% at HY16 & 6.5% at FY16 ) and the stronger ZAR (R10.26/AUD1 average vs. FY16 at R10.57/AUD1) ▪ First dividend contribution from GWI of EUR0.22 cps ▪ Net property income from GOZ ▪ RSA net property income increased 19.9% mainly as a result under pressure of the acquisition of GMF ▪ Costing more to keep and attract tenants in a fiercely competitive and weak market 15

Expenses remain under control ▪ SA property expenses under control ▪ Operating expenses increased as a result of less development fees earned in the current period and the reallocation of expenses ▪ V&A Waterfront and GOZ expense ratios up slightly due to increased office weightings Property Operating Total Expense Ratio Expense Ratio Expense Ratio South Africa 23.5% 3.6% 27.1% V&A Waterfront 28.1% 3.3% 31.4% GOZ 13.0% 4.8% 17.8% ▪ 11.7% increase in investment ▪ Reduction in finance costs for RSA income received from the due to increase in use of CCIRS V&A driven mainly by hotel ▪ Increase in finance costs for GOZ occupancies combined with due to acquisition of GMF the conversion of development activity into income producing assets 16

CONSOLIDATED BALANCE SHEET (EXTRACTS) FY17 FY16 INCREASE/ Rm Rm (DECREASE) Property portfolio (1) 109 442 104 690 4.5% RSA 76 906 73 752 4.3% GOZ (2) 32 536 30 938 5.2% 50% Investment in V&A Waterfront 7 110 6 616 7.5% 26.9% Investment in Globalworth 2 769 - 100% Other property-related investments 226 440 (48.6%) Nominal borrowings (3) 42 428 38 413 10.5% RSA (4) 29 288 24 653 18.8% GOZ (2) 13 076 13 760 (5.0%) Shareholders interest 72 045 68 295 5.5% 1. Includes R1 241m (FY16: R1 938m) of properties classified as held for sale. 2. Closing exchange rate R10.04/AUD (FY16: R11.04/AUD). 3. Excludes fair value adjustments. 4. The total value for FY17 excludes the deferred payment of R85m (FY16: R165m) on the Samrand land purchased. The outstanding payment is due in September 2017. 17

▪ 4.5% or R4.7bn increase in property values (RSA and GOZ) ▪ R5bn for the acquisition of GMF in GOZ BALANCE ▪ R1.5bn of assets acquired for the Healthcare Fund SHEET ▪ 18.8% increase in borrowings in RSA which ▪ NAV up 1.7% to was used to fund the GWI acquisition, 2 518 cents per acquisition of assets for the Healthcare share from FY16 Fund and further investment into the V&A Waterfront and GOZ ▪ 4.6% increase in borrowings in AUD for GOZ as a result of the GMF acquisition which, after the foreign exchange gain of R1.4bn, results in a 5.0% decrease in borrowings in Rands 18

CONTRIBUTION TO DISTRIBUTABLE INCOME Growth R5 600m R5 072m 10.4% 1.4% 78 1.6% 91 22 0.4% R4 232m 15.4% 865 772 15.2% 479 8.6% 345 429 8.2% 8.5% 658 15.5% 368 8.7% 4 087 73.0% 75.9% 3 849 67.6% 2 861 FY15 FY16 FY17 (1) RSA V&A Waterfront GOZ Trading & Development Listed Investments Anslow, Bryanston, Sandton 1. Listed Investments for FY17 consist of investment in GWI, FY16 consists of investment in Stenham. 19

CAPITAL MANAGEMENT 1 Charles Street, Paramatta, NSW, Australia