Half Year Results Presentation FOR THE 6 MONTHS ENDED 31 DECEMBER - - PowerPoint PPT Presentation

Half Year Results Presentation

FOR THE 6 MONTHS ENDED 31 DECEMBER 2018

Grit is a c.$440m MULTI-LISTED REAL ESTATE INCOME GROUP operating in carefully selected AFRICAN COUNTRIES excluding South Africa We optimise our structural investments which are underpinned by SOLID PROPERTY FUNDAMENTALS and anchored by MULTINATIONAL TENANTS We are committed to delivering STRONG & SUSTAINABLE INCOME with a target dividend yield of USD 8.25%; total return of USD 12.0% p.a.1 SEM - DEL.N0000 JSE - GTR:SJ LSE - GR1T:LN

• 1. These are targets only and are not guaranteed. These targets are based on a number of bases and assumptions which may or may not materialize.

Ι 3

Strategy Achievements Portfolio Update Financial Review Looking Ahead Annexures

Agenda

Bronwyn Corbett

Chief Executive Officer & Co-founder B.Comm (Acc) (Univ. of Natal, PMB), CA(SA)

• Founding member and CEO of Grit Real Estate Income Group
• Over 13 years’ experience in the real estate investment sector
• Financial Director in real estate investment firm for 4 years
• CFO of Motseng Investment Holdings in 2009 - instrumental in growing the

company’s direct real estate exposure to ZAR2 billion within 3 years

• Listing Delta Property Fund on JSE & conversion to REIT structure
• CFO & CIO of Delta Property Fund
• Co-founded Delta International Property in 2014, appointed CEO

Leon van de Moortele

Chief Finance Officer BCompt (Hons), CA(SA)

• Joined Grit in April 2015 as CFO
• Extensive experience in Africa
• Global Risk Management Services within PwC, Senior Manager in Data

Management

• Group Finance Director of Solenta Aviation in 2004
• During his tenure as Group Finance Director, the group expanded from 12

aircraft to 48 aircraft, operating in 8 African countries (South Africa, Mozambique, Algeria, Ghana, Gabon, Kenya, Tanzania and Cote d’Ivoire).

STRATEGY

Ι 5

Investment Case Compelling USD returns Blue-chip

multinational tenants

Robust risk mitigation Strong & broad African

management exposure High quality long-term

hard currency income Talented team

Experienced, well-resourced team, in- country management, alignment of interests

EXECUTIVE SUMMARY

Consistent performance

9 consecutive dividend payments

Quality portfolio

Diversification, investment grade

Relationship strength

Joint ventures, access to pipeline

Delivering attractive, stable & sustainable shareholder returns through selective risk mitigated investments

Hard currency

Margins of Safety

01

Political risk & macro-economics Hard currency Repatriation of funds Land tenure Ability to raise debt Counterparty

02 03 04 05 06

Ι 6

Attractive & Diversified Portfolio

EXECUTIVE SUMMARY 7 countries, 5 asset classes, 25 assets1

Properties acquired

Office: 4 Retail: 1

8.6% 6.5

Occupancy2

at reporting date

WALE (years)3 Valuation yield Total Portfolio Value4

(US$m)

Retail: 4 Light Industrial: 1 Office: 1 Hospitality: 4 Retail: 2 Light Industrial: 2

• Corp. Accomm: 1

Office: 1 Other: 1 Office: 2

• Corp. Accomm: 1

HY19 796.4 FY18 642.3 FY17 490.4 FY16 296.7 FY15 210.4

1. Includes 1 equity investment & 1 land parcel held for development 2. Calculation based on EPRA vacancy guidelines (weighted by market rent) 3. Weighted by GLA 4. Includes property loans receivable

96.6% 96.0%

Occupancy2

31 Jan ‘19

Country Value Mozambique US$280m Mauritius US$162m Morocco US$92m Zambia US$170m Ghana US$55m Kenya US$34m Botswana US$3m

Ι 7

Strength of Counterparty

EXECUTIVE SUMMARY Successful delivery of hard currency income from multinational tenants

• 1. Includes Forbes 2000, Other Global & Pan African tenants, weighted by income

35% 43% 15% 5% 2% % Rental Contribution to Portfolio by Tenancy Classification

Forbes Other Global Pan African National Local

92.6% 64.5% 93.2% 3.1% multinational tenants1 weighted avg. annualised rental escalation rental income top 15 tenants income hard currency

ACHIEVEMENTS

Ι 9

Financial & Strategic Highlights

ACHIEVEMENTS Creating value for shareholders Dividend Yield5

(87% payout ratio for HY19)

SEM – 8.1% JSE – 8.5% LSE – 7.9%

• 2. EPRA NAV excludes deferred tax on Property
• 5. Last 12 month dividend / share price on

each exchange as at 31 December 2018 Grit Real Estate Income Group

EPRA NAV2

US$143.1 cps

EPRA NAV growth

from portfolio performance

5.15% Income Producing Asset Value1 US$796.4m

(+19.8% during HY19)

NOI growth (incl. acquisitions)3

20.3%

Existing portfolio NOI growth 3

3.9%

• 3. 6 months Dec 17 vs Dec 18
• 4. Excluding revolver facilities

Group LTV 43.4%

(FY18: 51.4%)

Property LTV4

40.5%

Distributable Earnings

US$6.06

(Interim ‘18: US$6.07)

Interest Coverage Ratio

3.2

• 1. Includes property loans receivable

Ι 10

Portfolio Highlights

ACHIEVEMENTS Creating value for shareholders

Fair value movement4 +1.6%

• 4. Fair value movement excluding

contractual receipts from vendors. 6 months to 31 Dec ‘18

Weighted Average Cost

• f Debt

6.31%

(FY18: 5.75%)

• vs. LIBOR increase of 1.26%
• 3. Including straight lining

WALE2 6.5 years 31 Dec ‘18 6.7 years 31 Dec ‘18, excluding

acquisitions made in the period

• 2. Weighted Average Lease Expiry (by GLA)

Vacancy rate1 3.4%

Vacancy 31 Jan ’19

• 1. Measured as a percentage of total estimated

rental value, current portfolio EPRA vacancy

Cost to Income Ratio incl. associates3

15.2%

(Dec ‘17: 18.6%)

Admin Cost to Asset Value

1.3%

(Dec ‘17: 1.4%)

Gross Rental Income Growth

+25.9%

Profit from Operations Growth

+75.7%

Ι 11

Shareholder Base

ACHIEVEMENTS Diversifying shareholder base to allow access to global capital markets

5% 45% 37% 13%

Shareholders By Type

Management & Staff Fund Managers Pension Funds Retail

• New institutional shareholders from the UK following LSE listing
• Increased investments by African Pension Funds
• Increased participation by retail investors and improvements in liquidity

Register %

South Africa 22 Mauritius 63 UK1 15 TOTAL 100

• 1. As at 28 December 2018

28% 8% 8% 6% 5% 45%

Large shareholders (>5%)

Government Employees Pension Fund (PIC) Drive In Trading Limited Delta Property Fund Transformers Investment Ltd Management & Staff Others

Ι 12

Liquidity & Index Inclusion

ACHIEVEMENTS Increase in trading volume & focus on index inclusion continuing to increase liquidity in the markets

47,639 150,494 16,567

• 50,000

100,000 150,000 200,000 JSE SEM LSE Value Traded in USD

Average Daily Value Traded

Last 12 months (as at 31 Jan 2019) 9.1 25.9 2.9 37.9 0.0 10.0 20.0 30.0 40.0 JSE SEM LSE Total Million Shares

Volume Traded

Last 12 months (as at 31 Jan 2019)

Inclusions & targets Status SEM-10 Index (Mauritius) Included in 2017 S&P Africa Frontier (Global) Included in 2018 Cloud Atlas AMI series BIG 50 EX-SA ETF (South Africa) Included in underlying index in 2018 FTSE/JSE All Property Index (South Africa) Targeted 2019 FTSE/JSE SA Listed Property Index (South Africa) Targeted 2019 FTSE Frontier Index Series (UK) Targeted 2019 MSCI Frontier Markets Index & MSCI Emerging Frontier Markets ex South Africa IMI indexes (Global) Targeted 2019 SEM Sustainability Index (SEMSI) Targeted 2019 Intended LSE Premium listing Targeted 2020

PORTFOLIO UPDATE

Ι 14

Completed acquisitions since LSE listing

INVESTMENT

5TH AVENUE COMMERCIAL ACCRA 5,070m² US$21.4M 10.13% 9.08% 3.2 years 100% stake Renewal options of 2+2+1 years CADS II COMMERCIAL ACCRA 7,262m² US$37.1M 8.46% 8.22% 4.4 years 50% stake Negotiation for 2 year extension ACACIA ESTATE

• CORP. ACCOMM

MAPUTO 18,400m² US$64.7M 8.25% 8.24% 4.8 years 80.1% stake Confident on lease renewal given high spec nature of property Property Name Sector Location GLA Dec ‘18 Value1 Acquisition Yield Dec ‘18 Valuation yield WALE2 Ownership Asset management potential

1. Based on 100% ownership value 2. Based on GLA

Ι 15

Asset Management Highlights

ASSET MANAGEMENT Benefits of Sectoral Differentiation

Contribution to Total Portfolio Value (%) Existing portfolio Rental growth1 (%) Rental growth incl. acquisitions1 (%) WALE 2 Key tenancies renewed(last 12 months) Occupancy3 (%) Cost to Income Ratio4 (%) (EPRA based) Valuation trend ( ,  ,  ) 31.6% +3.3% +3.3% 3.2 years Vodacom, Bata 92.1% 31.5%



28.7% +2.4% +39.3% 4.7 years KPMG, Barclays, British Council, BP 96.0% 8.0%



20.5% +1.2% +1.2% 12.1 years No key tenancy expiries 100.0% 0.2%



Retail Office Hospitality

1. Contractual lease rental Dec ’17 vs Dec ’18 (excluding all recoveries)

• 2. Based on GLA
• 3. Based on market rental, EPRA reporting guidelines
• 4. Based on EPRA cost ratio reporting guidelines

Ι 16

Asset Management Highlights

ASSET MANAGEMENT Benefits of Sectoral Differentiation

13.7% n/a All assets acquired during the period 2.6 years No key tenancy expiries 100.0% 12.7%



4.6% (11.8)% (11.8)% 6.4 years No key tenancy expiries 100.0% 2.9%



100% +2.3% +21.6% 6.5 years n/a 96.0% 14.9%



Corp Accomm. Light Industrial

Total

Contribution to Total Portfolio Value (%) Existing portfolio Rental growth1 (%) Rental growth incl. acquisitions1 (%) WALE 2 Key tenancies renewed (last 12 months) Occupancy3 (%) Cost to Income Ratio4 (%) (EPRA based) Valuation trend ( ,  ,  )

1. Contractual lease rental Dec ’17 vs Dec ’18 (excluding all recoveries)

• 2. Based on GLA
• 3. Based on market rental, EPRA reporting guidelines
• 4. Based on EPRA cost ratio reporting guidelines

Ι 17

Portfolio Exposure

ASSET MANAGEMENT Ongoing sectoral & geographic diversification to optimise returns & mitigate risk

38.1% 22.7% 13.2% 12.8% 7.9% 4.9% 0.4%

Dec 2018 - Geographic

Mozambique Mauritius* Morocco* Zambia Ghana Kenya Botswana*

Note: Split by Asset Value, Grit proportionate ownership

*36% of Grit’s portfolio is in Investment Grade African countries

31.6% 28.7% 20.5% 13.7% 4.6% 0.5% 0.4%

Dec 2018 - Sectoral

Retail Office Hospitality Corporate Accommodation Light Industrial Property Held for Development Other Investment

Ι 18

Portfolio Key Metrics – by Sector

ASSET MANAGEMENT

As at 31 Dec ‘18 Retail Office Light Industrial Hospitality Corporate Accommodation Held for Development Other Investments Total Number of Properties/ Investments

7 8 2 4 2 1 1 25

Property Value1 (US$ m)

259.1 198.0 26.5 143.4 102.2 3.4 3.1 735.7

Weighted Average Capitalisation Rate (%)

8.2 8.3 8.3 7.5 9.4

• 12.0

8.6

WALE (years by GLA)

3.2 4.6 6.4 12.1 2.6

• 6.5

Weighted Average Annual Rent Escalations (%) by GLA

4.0 4.6 2.1 1.5 3.0

• 3.1

Weighted Average Net US$ Rental per m² per month

23.29 30.68 10.66 11.37 23.27

• 22.28

Gross Lettable Area (GLA) (m2)

120,365 51,920 19,416 111,777 35,471

• 338,949

Operating Cost to Income Ratio (%)2

31.5 8.0 2.9 0.2 12.7

• 14.9

EPRA Vacancies3 (%)

7.9 4.0 0.0 0.0 0.0

• 4.0

Weighted Average Cost

• f Property Debt (%)

6.2 7.7 6.4 3.9 8.1

• 6.3

Debt to Property Value4 (%)

39.9 43.7 26.7 45.3 35.0

• 40.5
• 1. Value as at 31 December 2018 - Grit proportionate ownership of associates, 100% value of properties under control. Portfolio value includes land values for Imperial Ph2 and Buffalo Mall Ph2.
• 2. Based on EPRA cost to income ratio guidelines
• 3. Vacancy is measured as a percentage of Total Estimated Rental Value, excludes those units under rental guarantee
• 4. Excluding revolver facilities

Ι 19

Portfolio Key Metrics – by Country

ASSET MANAGEMENT

As at 31 Dec ‘18 Morocco Kenya Ghana Mauritius Mozambique Zambia Botswana Total Number of Properties/ Investments

1 3 3 5 9 3 1 25

Property Value1 (US$ m)

92.2 28.7 52.2 158.9 273.2 127.4 3.1 735.7

Weighted Average Capitalisation Rate (%)

9.2 6.6 8.8 7.5 8.6 7.4 12.0 8.6

WALE (years by GLA)

3.5 8.6 3.5 11.8 3.1 2.6

• 6.5

Weighted Average Annual Rent Escalations (%) by GLA

3.3 2.8 3.4 1.9 3.4 4.7

• 3.1

Weighted Average Net US$ Rental per m² per month

35.38 10.81 36.69 11.40 25.01 18.25

• 22.28

Gross Lettable Area (GLA) (m2)

31,934 19,681 17,200 120,046 84,130 65,958

• 338,949

Operating Cost to Income Ratio (%)2

51.0 11.4 5.1 0.9 11.4 16.8

• 14.9

EPRA Vacancies3 (%)

20.1 0.2 5.8 0.3 4.3 0.0

• 4.0

Weighted Average Cost

• f Property Debt (%)

4.4 6.4 8.7 4.0 8.4 6.5

• 6.3

Debt to Property Value4 (%)

50.8 31.5 35.8 45.7 40.9 30.0

• 40.5
• 1. Value as at 31 December 2018 - Grit proportionate ownership of associates, 100% value of properties under control. Portfolio value includes land values for Imperial Ph2 and Buffalo Mall Ph2.
• 2. Based on EPRA cost to income ratio guidelines
• 3. Vacancy is measured as a percentage of Total Estimated Rental Value, excludes those units under rental guarantee
• 4. Excluding revolver facilities

Ι 20

Notable new leases and lease extensions

ASSET MANAGEMENT Continued counterparty strength improvements and lease extensions drive capital value

Country Property Tenant GLA Lease period Mozambique Commodity House Ph 1 Global Petroleum expansion replacing S&C Attorneys

1,910m² 10 years and 2 months

Commodity House Ph 2 Swiss Embassy

995 m² 5 years

Acacia Estate ENI

200 m² 1 year and 18 months

Zimpeto Shopping Centre Spar

1,780 m² 5 years

Morocco Anfa Place Mall Marks & Spencer (lease extension)

994 m² 9 years remaining on current lease 5 year extension in final negotiation

Anfa Place Mall Terranova (expansion and new 9 year lease)

700 m² 6 years from delivery of the unit (further 3 year lease extension equating to 9 year lease in relocated new store) - estimated from

• c. mid 2019

Ι 21

TOP 15 TENANTS

ASSET MANAGEMENT Majority of portfolio income generated from strength of multinational tenancies

• 1. Ranked by income

Rank1 Key Tenant Industry Income (% of Group Total) Tenant Grading Lease Covenant Lease Currency

1 Hospitality 9.1 Other Global Triple Net EUR 2 Telecommunications 8.3 Forbes 2000 Double Net USD 3 Hospitality 7.9 Other Global Triple Net EUR 4 Global Petroleum Oil & Gas Exploration 7.5 Forbes 2000 Gross USD 5 Mining 6.5 Forbes 2000 Gross USD 6 US State Department

• Corp. Accommodation

4.3 Other Global Gross USD 7 Global Oil Oil & Gas Exploration 3.0 Other Global Gross USD 8 Logistics 3.0 Pan African Triple Net USD 9 Financial Services 2.6 Forbes 2000 Gross MUR/USD 10 Retail 2.6 Forbes 2000 Gross USD 11 Communication 2.4 National Gross USD 12 Legal 2.0 National Gross USD 13

International Retail Morocco

Retail 1.9 Other Global Gross MAD 14 Retail 1.7 Forbes 2000 Gross USD 15 Retail 1.7 Pan African Gross USD/ZMW Total 64.5%

Ι 22

Asset Management Strategy

ASSET MANAGEMENT NAV uplift opportunities

Lifecycle Status Strategic Investment Focus Estimate Timing of deliverable

Retail Anfa Place Mall Maturing Redevelopment, Market and Tenancy re-positioning Q2 ’19 Buffalo Mall Maturing Disposal Q2 ’19 Zimpeto Square Mature Suitable New Anchor, Tenancy Mix, Redevelopment Q4 ’19 Mall de Tete Maturing Leasing, Longer Term Leases, Tenancy Mix, Market Maturity Q2 ’21 Corporate Accommodation VDE Housing Estate Mature Refurbishment, Tenancy Retention on Long Term Lease, Significant expansion, Enhanced Facilities for Occupier Loyalty Q3 ‘20 for expansion Light Industrial Imperial Phase 2 Maturing Expansion Q4 ‘19 Bollore Mature Redevelopment Q2 ’21 Hospitality Tamassa Resort Mature Expansion, Lengthened Lease Period, Asset Quality Maintenance Q2 ‘20 for expansion Office Commodity House Ph I Mature Anchor Tenancy Expansion, Cost Optimisation Q2 ’19 Vodacom Building Mature Tenant Retention on Long Term Lease, Refurbishment Q2 ’20 Commodity House Ph 2 Maturing Tenancy Mix, Longer Term Leases, Cost Optimisation 2021 to 2023

Ι 23

Mozambique Case Study

ASSET MANAGEMENT Grit Maputo office portfolio outperforms Maputo office market performance

Average rental growth last 3 years (%) Average Vacancies last 3 years (%) Average Rental last 3 years US$ m2

Maputo Office Sector Grit Maputo Office Portfolio

1.4% 0.3% US$29.30 (6.6)% 33.8% US$25.40

Ι 24

Investment opportunities

PIPELINE Grit actively pursuing yield accretive opportunities across approved investment jurisdictions

Potential Industrial Portfolio expansion of c.7%

• Potential Kenya regional expansion
• f c.125%

Disposal of Industrial Property

• capturing yield compression

INDIAN OCEAN

Mauritius, Reunion, Seychelles

• Potential expansion c.49%

hospitality portfolio expansion Potential Industrial portfolio expansion of c.37%

• Potential Botswana regional

expansion

• 1. These are targets only and are not guaranteed. These targets are based
• n a number of bases and assumptions which may or may not materialize.

Potential Industrial portfolio expansion of c.25%

FINANCIAL REVIEW HY19

Ι 26

4.65 5.58 5.95 6.07 5.25 6.64 6.17 6.12 6.12 0.81

2 4 6 8 10 12 14 FY15 FY16 FY17 FY18 HY19 US$ Cents per share (cps) Interim Dividend Final Dividend Earnings Held Back 11.29 11.75 12.07 12.19

31 Dec 2018 US$’000

Basic Earnings attributable to the owners of the parent 20,643 Add Back non-cash items:

• Straight-line leasing (non-cash rental)

(642)

• Total fair value adjustment on investment properties attributable to the owners of

the parent (11,711)

• Fair value adjustments included under income from associates

(1,925)

• Fair value adjustment on other investments

(26)

• Unrealised foreign exchange gains or losses (non-cash)

3,032

• Unrealised foreign exchange gains or losses included in associates (non-cash)

1,181

• Share based payments

78

• Movement in deferred tax attributable to the owners of the parent

4,331

• Depreciation and amortization

167 Items added back

• Acquisition costs not capitalized

2,007

• Current tax provision

(1,459) Other cash generation

• VAT and tax credits utilized

997

• Rental concessions for capital projects

288 Total Distributable Earnings 16,961 Distributable earnings per share (US$ cps) 6.06 Weighted average shares in issue (‘000) 279,673 Distribution declared: Interim 15,859 US$5.25 cps

Distributable Income

FINANCIAL REVIEW

+4.1% +2.7% +1.0%

• 1. Distributable earnings held back as contingency for Anfa project

6.06

1

Ι 27

EPRA NAV Bridge

FINANCIAL REVIEW

Corporate activity Portfolio performance 5.15% increase

US$m

Ι 28

0.8% 5.0% 14.7% 16.2% 33.2% 30.1%

Debt Financing Overview

FINANCIAL REVIEW Funding strategy continues to target reduction in LTV and cost of debt

• Successful refinancing across Mozambique portfolio delivering lower cost of debt
• Management implementing currency risk management framework to reduce EURO exposure
• Grit continues to use multibank strategy to deliver funding strategy

54.9 66.6

10 20 30 40 50 60 70 EUR m

June '18 Dec '19

NET EUR EXPOSURE DEBT EXPIRY PROFILE MULTI BANK STRATEGY

10.4 23.3 12.0 10.5 25.5 27.8 14.0 7.4 0.4 38.0 60.8 76.4 8.6 9.0 2.7

10 20 30 40 50 60 70 80 90 US$m Facility currently being refinanced (Corporate facility)

Ι 29 GROUP

Condensed consolidated statement of comprehensive income - For the 6 months ended 31 Dec 2018 31 Dec 2017 (US$’m) 31 Dec 2018 (US$’m) Gross rental income 14.9 18.7 Straight-line rental income accrual 0.4 0.6 Revenue 15.3 19.4 Property operating expenses (3.3) (4.0) Net property income 12.0 15.4 Other income 0.0 0.1 Administrative expenses (including corporate structuring costs) (7.9) (8.2) Profit from operations 4.1 7.3 Fair value adjustments on investment properties 1.5 12.4 Contractual receipts from vendors of investment properties 7.6 2.7 Total fair value adjustment on investment properties 9.2 15.0 Fair value adjustment on other investments 0.1 0.0 Fair value adjustment on other financial assets (0.1) 0.0 Fair value adjustment on derivative financial instruments (0.1) 0.0 Share-based payment expense (0.2) (0.1) Share of profits from associates 5.9 7.7 Foreign currency gains / (losses) 5.6 (1.1) Profit before interest and taxation 24.5 28.9 Interest income 2.4 6.7 Finance costs (9.4) (11.0) Profit for the period before tax 17.5 24.6 Taxation (0.2) (3.6) Profit for the period after tax 17.3 21.0

Statement of Comprehensive Income

FINANCIAL REVIEW

Ι 30

Statement of Financial Position

FINANCIAL REVIEW

INCOME PRODUCING ASSETS

Condensed consolidated statement of financial position As at 31 Dec 2018 30 June 2018 (US$’m) 31 Dec 2018 (US$’m) 30 June 2018 (US$’m) 31 Dec 2018 (US$’m) Movement Assets Non-current assets Investment properties 383.1 552.8 383.1 552.8 44.3% Deposits paid on investment properties 11.1 15.4 11.1 15.4 38.7% Other investments 4.2 4.2 4.2 4.2 0.0% Investments in associates 165.3 135.7 201.3 174.0

• 13.6%

Other loans receivable 42.9 42.9 42.1 42.1 0.0% Other non-current assets 12.1 13.2 0.5 0.5 9.1% Total non-current assets 618.6 764.2 642.3 789.0 23.1% Total current assets 32.9 70.1

• 7.4

100.0% Total assets 651.6 834.3 642.3 796.4 28.0% Equity and liabilities Total equity attributable to ordinary shareholders Ordinary share capital 328.4 443.2 Treasury shares reserve (14.8) (14.8) Reserves (34.2) (27.4) Equity attributable to owners of the Company 279.4 401.0 Non-Controlling interests (3.9) 16.7 Total equity 275.4 417.7 Liabilities Non-current liabilities Redeemable preference shares 12.8 12.8 Interest-bearing borrowings 207.1 201.5 Other non-current liabilities 20.9 44.8 Total non-current liabilities 240.8 259.1 Current liabilities Interest-bearing borrowings 99.1 123.4 Other current liabilities 36.2 34.1 Total current liabilities 135.3 157.5 Total liabilities 376.1 416.6 Total equity and liabilities 651.6 834.3

OUTLOOK

Ι 32

OUTLOOK

OUTLOOK Focus for FY19 Liquidity & Indices Focus Boosting liquidity and accessing indices Access to Pipeline Accretive assets with additional blue-chip tenancies Target Dividend Growth 3 - 5%¹ annually Target Total Return Focus 12.0%¹ minimum Existing Geographies Leveraging off current footprint for growth Reduction in Cost of Funding Debt restructuring

• 1. These are targets only and are not guaranteed. These targets are based on a number of bases and assumptions which may or may not materialize.

NAV Growth Initiatives by June ‘19

Completion of Anfa Shopping Centre redevelopment Global petroleum anchor tenant expansion in Commodity House Ph 1

Ι 33

Grit Real Estate Income Group

• Reg. No. C128881

3rd floor, La Croisette Shopping Centre, Grand Baie 30517, Mauritius Level 5, Alexander House, 35 Cybercity Ebene 72201, Mauritius

T: +230 269 7090 Communications: communications@grit.group Investor relations: darren@grit.group

Thank You

ANNEXURES

Ι 35

Peer Performance

EXECUTIVE SUMMARY Grit targets a dividend yield in excess of 8.25%* vs. a global REIT dividend of 4.2% in USD terms

4.2 4.4 3.7 4.2 8.0 9.4 0.0 2.0 4.0 6.0 8.0 10.0 12.0 Global Americas AsiaPacific Europe Middle East Africa GRIT

Dividend Yield (%)

2015 2016 2017 2018 2019 YTD

Grit

Source: National Association of Real Estate Investment Trusts (as at 11 January 2019) - Returns in USD terms

Target of min. 12% total USD return for Grit for FY19 Target of min. 8.5%* dividend yield and 3.5% NAV growth

Global Americas Asia/Pacific Europe Middle East /Africa

Grit dividend yield calculated using USD-equivalent JSE price as at 28 December 2018. * Based on last issue price of $1.43.

Ι 36 Ι 36

Bronwyn Corbett

Chief Executive Officer & Co-founder B.Comm (Acc) (Univ. of Natal, PMB), CA(SA)

Bronwyn is a founding member and CEO of Grit Real Estate Income Group, the largest pan-African focused real estate group listed on the LSE, JSE and SEM (stock exchanges in London (UK), Johannesburg (South Africa) and Port Louis (Mauritius) respectively). Bronwyn has over 13 years’ experience in the real estate investment sector. She worked in a real estate investment firm for 4 years as Financial Director before joining Motseng Investment Holdings in April 2009 as CFO. Together with the CEO, she was instrumental in growing the company’s direct real estate exposure to ZAR2 billion within 3 years, before listing the portfolio on the JSE as Delta Property Fund – where she held the positions of CFO and CIO. Bronwyn was part of the executive team that grew Delta Property Fund to a portfolio valued at ZAR12 billion in 4 years and converted the structure to a REIT. In 2014, she co-founded Delta International Property where she was appointed CEO. Under Bronwyn’s leadership, Grit has consistently achieved Dollar-based distribution exceeding 7%. She has driven the growth of the portfolio from US$140 million and two assets, to approximately c.US$700 million and 25 assets across seven jurisdictions.

Leon van de Moortele

Chief Finance Officer BCompt (Hons), CA(SA)

Leon joined Grit in April 2015 as CFO, where he has utilised his tax structuring knowledge and experience in operating in Africa to expand the asset base of the group. After completing articles with PwC, Leon moved to the Global Risk Management Services within PwC, where he become the Senior Manager in charge of Data Management. In 2004, he moved to Solenta Aviation where he became Group Finance Director within 18 months. During his tenure as Group Finance Director, the group expanded from 12 aircraft to 48 aircraft, operating in 8 African countries (South Africa, Mozambique, Algeria, Ghana, Gabon, Kenya, Tanzania and Cote d’Ivoire).

Executive Members of the Board

Ι 37 Ι 37

Peter Todd

Board Chairman Listed Directorships: 3 Appointed to the board on 14 August 2014

Peter is a qualified attorney and began his career as the senior tax manager at Arthur Anderson and Associates in

• Johannesburg. He joined TWS Rubin Ferguson in 1993 as a tax partner and was instrumental in listing several

companies on the JSE. The practice was focused on the property and finance industry. In 2000, Peter established Osiris International Trustees Limited in the British Virgin Islands ("BVI") to provide international trust and corporate administrative services to global clients, as well as Drake Fund Advisors which assists with the set-up and administration of hedge funds in the BVI and Cayman Islands. He held a non-executive director position at Redefine International Limited from the initial listing for 9 years and served for several years as audit committee chairman. Peter has been involved with Grit since inception on the SEM and has otherwise been involved in the property industry for many years, in South Africa and also in the UK and in

• ther parts of Africa. Peter also has extensive corporate finance experience with regards to listing of companies on

various exchanges including the JSE, LSE and SEM.

Ian Macleod

Senior Independent Non-Executive Director Listed Directorships: 2 Appointed to the board on 1 July 2015

Ian holds a BCom (Honours) in Real Estate Investment, Valuation and Development and has over 43 years of experience with financial institutions, including Standard Bank of South Africa and Nedbank with a specific focus on Real Estate Credit Risk. He has extensive knowledge of the real estate sector’s key role players, business sector and geographic nodes. Ian has managed portfolios in excess of R80 billion during changing economic cycles and has managed problematic properties in economic downturns. It is Ian’s expertise and knowledge that have seen him previously hold the position

• f Head of Credit for Real Estate.

Non-Executive Members of the Board

Ι 38 Ι 38

David Love

Independent Non-Executive Director Listed Directorships: 1 Appointed to the board on 4 December 2018

David Love is a Chartered Accountant, qualifying with Deloitte, and holds a BCom and LLB (Hons First) with a distinction in Land Law, Equity and Trusts. He has over 18 years’ experience in the real estate investment sector. He is the former CFO of ING REIM (UK), CFO/COO UK of CBRE Global Investors and holds the position of CFO at Knight Frank Investment Management.
David has considerable knowledge of real estate financial and operational processes, fund and asset structuring, tax, legal and compliance, and has been instrumental in the completion of a number of high profile real estate transactions including the listing of Picton Property Income Limited (formerly ING UK REIT) on the LSE and the formation of a £1.4b UK Property Authorised Investment Fund. He has arranged in excess of £4b of debt for clients including a CMBS issuance.
David has been a director and chairman of several general partner companies, a Luxembourg company investing in European infrastructure, a Guernsey trust manager and has served as a non- executive director of Welcome Break.

Catherine McIlraith

Independent Non-Executive Director Listed Directorships: 4 Appointed to the board on 24 November 2017

Catherine is a Mauritian citizen and holds a Bachelor of Accountancy degree from the University of the Witwatersrand, Johannesburg and has been a member of the South African Institute of Chartered Accountants since 1992. She served her articles at Ernst & Young in Johannesburg. She then joined the investment banking industry and has held senior positions in corporate and specialised finance for Ridge Corporate Finance, BoE NatWest and BoE Merchant Bank in

• Johannesburg. She returned to Mauritius in 2004 to join Investec Bank where she was Head of Banking until 2010.

Catherine is a Fellow Member of the Mauritius Institute of Directors ("MIoD"). She has also been a member of the Financial Reporting Council. She has served as an independent non-executive director and as a member of various committees of a number of public and private companies in Mauritius including AfrAsia Bank Limited from 2011 to

• 2017. Catherine also served as a Director of MIoD for five years and as its Chairperson for 2 years from 2014 to 2016.

Non-Executive Members of the Board

Ι 39 Ι 39

Matshepo More

Non-Executive Director Listed Directorships: 3 Appointed to the board on 7 February 2017

Matshepo is a Chartered Accountant and holds a Certificate in Theory of Accounting and a Bachelor of Business Science in Finance. Matshepo served her articles at Deloitte, specialising in financial institutions, before being seconded to New York to handle a large asset management company. She was promoted to audit manager on her return to SA. Matshepo left Deloitte to join the Public Investment Corporation in South Africa ("PIC") in 2009, where she was appointed as Finance Manager. In 2011, she was appointed CFO of the PIC, where she is responsible for the Corporation’s finances, ensuring that the PIC complies with the Public Finance Management Act (PFMA), which regulates financial management of all public entities in the national government and provincial governments. Matshepo is a member of the Financial Reporting Standards Council, a statutory body responsible for issuing financial reporting standards in South Africa and she also serves on the Board of IRBA.

Nomzamo Radebe

Non-Executive Director Listed Directorships: 1 Appointed to the board on 24 November 2017

Nomzamo is the Chief Executive Officer of Excellerate Real Estate Services, a division of Cushman and Wakefield Excellerate, one of South Africa’s leading property services companies. Nomzamo is a qualified Chartered Accountant, with a successful career spanning over 20 years, 12 of those years spent in various roles in the real estate sector. She is a Certified Retail Property Executive by the International Council of Shopping Centres. Nomzamo is a former chief investment officer of Pareto Limited, a leading company in the retail property industry in South Africa. Prior to joining Pareto, Nomzamo worked in the National Treasury’s Asset and Liability Unit as a Director and in the Sasol Group treasury unit as a Treasury Operations Manager. She completed her articles with KPMG Inc. She is a Past President of the South African Property Owners Association (SAPOA) and also a Past President of the South African Council of Shopping Centres (SACSC). She was awarded the IPM Business Leader of the year 2016 and the Five Star Woman award by the Women in Property Network in 2009. She is the Chairman of Munich Reinsurance Company of Africa Limited and has been a non -executive director of several other companies.

Non-Executive Members of the Board

Ι 40

Heidi Rix

Group General Manager B.Comm LLB

Heidi joined Grit as Chief Operating Officer in May 2016. She has 19 years’ commercial and real estate experience and is an admitted attorney holding BComm and LLB degrees in addition to specialised real estate sector qualifications. Heidi has recently taken on an expanded role as Group General Manager. Before joining Grit, Heidi worked at Broll Property Group where she was a Group Director and Managing Director of their Investor Services Division. In this capacity, Heidi was responsible for the Asset Management, Property Management and Retail Leasing businesses at Broll. Her expertise include asset management, investment management, portfolio management, portfolio and management structures and performance management, lease management models, value optimisation of property assets, property acquisitions and disposals, real estate development projects (Greenfield opportunities), redevelopment/refurbishment projects (Brownfield opportunities) and portfolio analysis and due diligence. Prior to joining Broll, Heidi successfully managed her

• wn property investment consulting business for over two years and held previous positions in the industry as a director

for Atterbury Asset Managers as well as General Manager for RMB Properties (Pty) Ltd (now known as Eris Property Group).

Belinda Wong-Vacher

Chief Investment & Corporate Advisory Officer Cert Business Accounting (CIMA), BSc (Hons), MBA (University of Mauritius)

Belinda holds a Certificate in Business Accounting (CIMA), BSc (Hons) (Finance), MBA (University of Mauritius), Financing the Entrepreneurial Business Programme (London Business School, UK) and Strategy Execution for Business Leaders (Insead, France). Prior joining Grit, Belinda started her career at Rogers Group in 2006, one of Mauritius’ most prominent conglomerate as an investment trainee. She has spent 13 years working for the Company, whereby her career took her through the various facets of real estate, project management and corporate advisory, all contributing to her most recent position there as Head of Projects and Corporate Advisory. Belinda also held the position of Executive Director of Ascencia Ltd, Mauritius’ largest domestic property company, where she was responsible for Fund Management, Strategic Management and Investor Relations.

Executive Team

Ι 41

Eric Weirich

Financial Director CA(SA)

Eric joined Grit as Finance Director of Delta International Mauritius Limited on 1 September 2018. Eric joins from Gazprom Marketing & Trading (GM&T) London, where he was the Global Head of Business Planning and Reporting and acted as Head of the Global Controlling function from November 2016. His role included managing and directing a 14 member financial reporting team controlling the statutory reporting across three continents. Eric is a Chartered Accountant having qualified with PwC in South Africa before taking up senior roles with Doosan Power Systems and then Gazprom.

Moira van der Westhuizen

Group Risk & Audit Officer B.Comm (Hons), CA(SA)

Moira joined Grit as the Chief Integration Officer (CIO) in May 2016. She holds a BCom (Honours) degree from the University of South Africa and is a qualified Chartered Accountant with more than twenty years of experience, in auditing, finance and business, including managing her own practice before partnering with an audit and accounting practice in 2005. In 2008, Moira relocated to Mauritius where she worked for Investec Bank (Mauritius) and later the CCI Group as Group Financial Controller before joining Grit. Moira has recently taken on an expanded and more challenging role as Group Risk and Audit Officer.

Executive Team

Ι 42

Jaco van Zyl

Deputy Chief Financial Officer BCompt (Hons), CA(SA)

Jaco holds a BCom Degree from the North-West University, a BCompt Honours Degree from the University of South Africa and is a qualified Chartered Accountant. After completing articles he moved to Federal Airlines as Financial Manager and ultimately assumed responsibility of the full finance function of the South African and Mozambican

• perations. In January 2012 he joined JSE-listed group, Sentula Mining’s exploration drilling division Geosearch as the

Financial Manager and developed into the CFO for of the Geosearch group. Here his experience on the African continent expanded further into Mauritius, Botswana and Mozambique. Since joining Grit in February 2016, Jaco has assumed responsibility for the group’s reporting and treasury function, effectively flowing funds within the Grit structure and maintaining debt facilities.

Greg Pearson

Co-founder MCMI, Elec Eng.

Greg is a founder member of Grit and has been instrumental in sustaining its rapid growth since inception in 2014. Prior to Grit, Greg was responsible for expanding AECOM’s African footprint. His hands-on experience has allowed him to develop an expansive strategic business network with local and global developers as well as influential industry players

• n the continent and beyond. He has successfully completed a series of developments across the office, retail, leisure,

education and healthcare sectors. Greg is registered with the Chartered Management Institute and is a graduate of Kingston University, London.

Executive Team Company Co-Founder

This report has been prepared by Grit Real Estate Income Group Limited ("Grit" or the “Company”) solely for your information and should not be considered to be an offer or solicitation of an offer to buy or sell or subscribe for any securities, financial instruments or any rights attaching to such securities or financial instruments. In particular, this report does not constitute an offer to sell, or the solicitation of an offer to acquire or subscribe for, securities in any jurisdiction where such offer or solicitation is unlawful. All information and statistics provided in this presentation relating to targeted acquisitions or post-targeted acquisitions status is predicated on information available to the Company at the time of printing of this presentation. Such information may be subject to change depending on final negotiations and documentation related to such targeted acquisition. None of the directors, officers or employees of Grit make any representation or warranty, express or implied, as to the accuracy or completeness of the information or opinions contained in this report. This report is a summary only, and does not include all material information about Grit. This report contains certain statements which are, or may be deemed to be, 'forward-looking statements'. By their nature, these forward-looking statements and the facts contained therein are subject to a number of known and unknown risks, uncertainties and contingencies, many of which are beyond Grit’s control or influence, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. These forward-looking statements speak only as of the date of this publication. Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. Except as required by any applicable law or regulation, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this publication to reflect any change in Grit's expectations or any change in events, conditions or circumstances on which any such statement is based. Accordingly, undue reliance should not be placed on any such forward-looking statements. Forward-looking statements have not been reviewed by external auditors and are the responsibility of the Board of Directors of the Company. All targets mentioned in this presentation are targets only and are not guaranteed. These targets are based on a number of bases and assumptions which may or may not materialize and have not been assessed or validated by the auditors. Nothing in this presentation should be construed as a profit forecast. Nothing in this report should be viewed, or construed, as "advice", as that term is used in the South African Financial Markets Act, 2012, and/or Financial Advisory and Intermediary Services Act, 2002 and/or the equivalent legislation in the United Kingdom, United States of America or in the Republic of Mauritius.

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