PRESENTATION TO MADISON PROPERTY FUND MANAGERS Pieter Prinsloo COM - - PowerPoint PPT Presentation

PRESENTATION TO MADISON PROPERTY FUND MANAGERS

Pieter Prinsloo

Listed in 1987 - excellent track record Prime shopping centres with scarcity value Market cap of R5.2 billion Investment portfolio of R6 billion Sustainable income growth & value

COM OMPAN PANY OVER Y OVERVI VIEW EW

ASSETS Direct vs Indirect (by value)

Direct 79% Indirect 21%

Value Billion Direct R 4.7 Indirect R 1.3 R 6.0

ASSETS Property Investments

(Direct)

Retail 94% Offices 6%

Value Billion Retail R 4.4 Offices R 0.3 R 4.7

ASSETS Property Investments (Indirect)

SA Retail

(Listed)

85%

VPIF

(Unlisted)

15%

Value Billion SA Retail R 1.1 VPIF R 0.2 R 1.3

Hyprop owns 46% of SA Retail

ASSETS

Offices 5% VPIF 4% SA Retail 18% Shopping centres 73%

Combined in Value

SHO SHOPPING CENT CENTRE RES

Size m² Value Hyprop Net Income Ownership Canal Walk 131 320 R 2 240 m R 155 m 80% The Glen 51 800 R 667 m R 52 m 75.15% Hyde Park 37 121 R 782 m R 59 m 100% Rosebank Mall 33 774 R 577 m R 48 m 100% Southcoast Mall 27 642 R 117 m R 10 m 50%

Value

The Glen 15% Canal Walk 51% Hyde Park 18% Rosebank Mall 13%

Southcoast

3%

Retail area 122 000 m² Number of stores 420 Offices 9 400 m² National tenants 73% Footcount (p a) 20 million

Retail area 51 800 m² Number of stores 152 National tenants 83% Footcount (p a) 12 million

Retail area 27 600 m² Number of stores 132 Offices 9 500 m² National tenants 57% Footcount (p a) 5 million

Retail area 34 000 m² Number of stores 116 National tenants 62% Footcount (p a) 11 million

Retail area 27 600 m² Number of stores 93 National tenants 73% Footcount (p a) 3 million

DEVEL ELOPM PMENT ENT

Located in Greenstone Park Modderfontein Retail area Phase 1 50 000 m² Phase 2 15 000 m² Number of stores 75 Cost of Phase 1 R512 million Completion Oct 2008

Transformation initiative with Vunani Properties Hyprop owns 49.8% and Vunani Properties 50.2% Focus on enterprise and skills development Unlisted PLS Company Hyprop disposed of 5 office buildings – value R174.5 million Total portfolio is 17 buildings - value R422 million

VUNAN VUNANI PRO PROPERTY I INVE NVESTMENT FUND UND (“VP VPIF”)

PERFORMANCE

Distribution History

(cents per unit)

72 77 85 96 108 117 126 130 140 163 225 190

• 50

100 150 200 250

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

11% average growth p a over 11 years 13 years of uninterrupted growth

Distribution Growth (year on year)

7% 11% 13% 12% 9% 8% 3% 8% 18% 17% 16% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

PERFORMANCE

PERFORMANCE

10.8 8.8 6.8 3.7 2.7 1.7 2 4 6 8 10 12 % vacant 2001 2002 2003 2004 2005 2006 Vacancy Reduction

PERF PERFORM RMANCE CE

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 2001 2002 2003 2004 2005 2006

Total Assets R6 billion

PERF PERFORM RMANCE CE

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 2001 2002 2003 2004 2005 2006

Total Assets R6 billion Market Cap R5.2 billion

PERF PERFORM RMANCE CE

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 2001 2002 2003 2004 2005 2006

Total Assets R6 billion Market Cap R5.2 billion Debt R1.2 billion

UNI UNIT PRI PRICE CE HI HIST STORY

Hyprop Combined Unit Price

500 1000 1500 2000 2500 3000 3500 4000 Oct-01 Feb-02 Jun-02 Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06

3.5 times increase in unit price over 5 years

Hyprop vs PLS Index

0.5 1 1.5 2 2.5 3 3.5 4 4.5 Jul-02 Nov-02 Mar-03 Jul-03 Nov-03 Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06 Hyprop PLS Index

UNI UNIT PRI PRICE CE HI HIST STORY

Consistently outperforming the index

Price per unit in Oct 2001 : R10.50 Total distribution over 5 years: R8.48 per unit = income return of 16.2% p a

(12.6% compounded)

Price per unit in Nov 2006: R36.50 Capital growth over 5 years: R26.00 per unit = capital return of 50% p a

(28.3% compounded)

Total growth over 5 years: R34.48 per unit = total return of 66% p a

(33.8% compounded)

OVE VERALL PERF PERFORM RMANC NCE

Debt - R1.18 billion Gearing – 20% Weighted Average Interest Rate – 9.6% Borrowing Capacity – R2 billion First property fund to use capital debt market funding BORRO ROWING NGS

BORRO ROWING NGS

283 300 300 300 270 275 280 285 290 295 300 2007 2008 2009 2010 2011 2012 2013 2014 2015 Interest Rate Expiry Profile R million

10.3 % 9.1 % 9.3 %

76% of debt fixed for longer periods

10.0 %

UNI UNITHOLDE DER PRO PROFILE

Unitholders in Excess of 5% of Units in Issue

Standard Bank Group 5.20% Old Mutual Funds 6.80% Coronation Funds 7.30% Stanlib Funds 11.80% Redefine 28.60%

Independent Non-Executive Directors PF Kirchmann (Chairman) MS Aitken JR McAlpine PJ Thurling (will become alternate director from 1 December) K Sibisi (appointed from 1 December)

Boar

• ard

d Com

• mpos

position

• n

Non-Executive Directors WE Cesman EG Dube S Shaw-Taylor (Chairman Audit committee) M Wainer LE Weil Executive Directors

Pieter Prinsloo (CEO) Laurence Cohen (CFO – appointed from 1 December)

Board of Directors

Com

• mpany

pany Struct cture

Asset Manager

Madison Property Fund Managers

Property Managers

Madison Property Fund Managers, Canal Walk Management Company (Pty) Ltd, JHI Real Estate Ltd (Rosebank Mall & JHI House)

Senior Management

Employed by MPFM Asset Manager: Nicole Greenstone Employed by Hyprop Investments Canal Walk: Wayne Abegglen & Gavin Wood The Glen: Roy Licht Hyde Park: Reinette Atkinson Rosebank Mall: Leila Daya Southcoast Mall: Tracey Kohler Offices: Lelani Grove

Developments in existing portfolio Canal Walk East Piazza, Nu Metro space & food court area New retail at entrances – 20 000m² The Glen Extension to Edgars & application for additional bulk Rosebank Planet Fitness Mall Southcoast Further retail developments Total Value - ± R300 million PROSPECTS – UNL UNLOCK CKING VAL VALUE UE

BEE equity transaction – R600 million Corporate action – SA Retail Maintain focus on prime A grade shopping centres Dispose of stand-alone offices Superior income growth ST STRAT RATEGY

THANK YOU FOR THE OPPORTUNITY

ST STRAT RATEGY