annual results - the vault financial results 25 looking ahead 37 ... checkers hyper in mall of...

- 1 -

ANNUAL RESULTSFOR THE YEAR ENDED 30 JUNE 2016

- 2 -

GENERAL OVERVIEW 3

INVESTMENTS SOUTH AFRICA 8

INVESTMENTS EMERGING MARKETS 13

INVESTMENTS DEVELOPED MARKETS 17

DEVELOPMENTS 20

FINANCIAL RESULTS 25

LOOKING AHEAD 37

QUESTIONS & ANSWERS 41

APPENDICES 43

AGENDA

DEVELOP

GROW

INVEST

GENERAL OVERVIEW

- 4 -

YEAR-ON-YEAR HIGHLIGHTS

ADJUSTED NAVPS

+15.3%June 2016: R21.89June 2015: R18.98

DEVELOP

GROW

INVEST

NET RENTAL INCOME

+17.2%June 2016: R1 118.27 million

June 2015: R 954.05 million

TOTAL ASSETS

+18.6%June 2016: R27.63 billion

June 2015: R23.30 billion

WATERFALL BULK COMPLETED

+49.5%June 2016: 409 509 m²

June 2015: 273 860 m²

CAGR* FROM INCEPTION

+29.4%June 2016: 29.4%

June 2015: 30.9%

NON-SA ASSETS

+34.0%June 2016: R5.83 billion

June 2015: R4.35 billion

* CAGR: Compounded Annual Growth Rate

- 5 -

STRATEGIC EXECUTION HIGHLIGHTS

DEVELOP GROWINVESTNew partnerships formed with

Sanlam, Equites, Zenprop, Barrow,

Artisan, Atterbury Europe

Investments in Central

and Eastern Europe:

Serbia:

6 operational malls,

1 under construction

Cyprus:

2 operational malls

Investments in International increased

by 34.0% to

R5.8 bn

Appointed Head of Developments,

internalised development management

and cancelled Atterbury’s exclusive right

to develop Waterfall

Mall of Africaopened on 28 April 2016

SACSC* Spectrum Award for the

best regional and super-regional shopping centre

Checkers Hyper in Mall of Africa won SACSC Award

for the best shopping centre store larger than 1 000 m²

11 bursaries

via Atterbury Trust

Columba

Property Point

CEO Sleepout

Commenced on the

largest PV plantin South Africa

at Mall of Africa and

3 other installations

8buildings in SA, adding primary

GLA of 127 198 m²

Completed

81 Gold LEED rated

building

Green ratedbuildings

MSCI Award for best performing office portfolio based on a 3-year annualised total return to December 2015

Vacanciesreduced from 4.0%

to

2.4%

Rebrandwith a new colour palette

and a recognisable

icon element

Implemented waste management and recycling projects

for all buildings in our portfolio

capital recycled

Sold: THE CLUB, ATTERBURY,

INVESTMENTS IN MAURITIUS,

GREAT WESTERFORD,

GEELHOUTBOOM,

BISHOPSGATE R1.3 bn

Total operating costs

0.5% of gross assets

Maintained a

B-BBEE level 4rating despite the impact

of the new codes already

affecting suppliers

Karoo agterskot

R479.8 m

* SACSC: South African Council of Shopping Centres

LaunchLabIncubator Programme

Acquired 25% of

Ikeja City Mall

- 6 -

PERFORMANCE 2016 FINANCIAL YEAR

Performers

• Healthy income growth on core portfolio

• Recycling of capital

• SA Retail Portfolio

• SA Industrial Portfolio

• Completion of Mall of Africa

• Development profit from other developments

• Serbia and Cyprus investments

Underperformers

• Mark-to-market adjustments swaps

• MAS Real Estate (Brexit impact)

• Nova Eventis, Germany

• African portfolio

• Vacant land and infrastructure

- 7 -

BUSINESS STRATEGY

58%

23%

13%

6%

June 2015

66%6%

15%

13%

June 2016

Percentages based on gross assets

EMERGING MARKETS

DEVELOPED MARKETS

DEVELOPMENTS

SOUTH AFRICA

DEVELOP GROWINVEST

SOUTH AFRICA 66%

INVESTMENTSSOUTH AFRICA

- 9 -

SA PORTFOLIO

RETAIL

HOTEL

LIGHT INDUSTRIAL

OFFICE AND MIXED USE

80.1%

6.9%

13.0%

GAUTENG

NORTH WEST

WESTERN CAPE19.5%

9.1%

71.4%

Portfolio value by location

June 2016 June 2015

2.4%

6.1%

33.1%

58.4%

June 2016

46.5%

45.6%

5.5%

2.4%June 2015

Portfolio value by sector

Percentages based on IFRS values, excluding developments under construction, development rights and vacant land

- 10 -

14.3%

50.2%12.5%

2.0%

13.5%

6.3%

1.2% 7.6%

16.1%

2.3%

13.0%

41.2%

19.8%

GREEN ELEMENTS

RETROFIT LED ENERGY EFFICIENT LIGHTS

3 Star GBCSA

4 Star GBCSA

5 Star GBCSA

GLA EVOLUTION

June 2016

NON-GREEN NON-GREEN

June 2015

200 000

400 000

600 000

800 000

June 14 Reconfigurations Completed Acquired June 15 Reconfigurations Completed Sold June 16

m²

389 882 (462)

150 85125 525 565 796 1 599

127 198 (14 558)

Gold LEED

680 035

GBCSA: Green Building Council of South Africa

- 11 -

MALL OF AFRICA

28th April opened

131 038 m² total GLA

4 500 permanent jobs created

>1.1 million shoppers per month

±7 500 people employed during construction

Delivery and servicing

Public transport holding facility

26 entrances

304 retail outlets

±6 500 parking bays

Anchor tenants

Uniqueness and efficiencies

±25 000 m² planned for

future expansion

Value upliftmentin years to come

SACSC Spectrum Award

- 12 -

TRADING DENSITIES

0

1 000

2 000

3 000

4 000

5 000

Brooklyn

Mall

Eikestad

Precinct

Garden Route

Mall

Glenfair

Shopping Centre

Lynnwood Bridge

Retail

MooiRivier

Mall

Newtown

Junction

Waterfall

Corner

12 MONTHS AVERAGE ENDING JUNE 2016 12 MONTHS AVERAGE ENDING JUNE 2015

4 690

2 920

2 1392 353

4 130

2 405

1 113

▲9%

3 196

▲16%

2 487

▲8%

2 541

▲13%

4 672

▲2%

4 777

▲1%

2 440

▲35%

1 506

R / m²

3 058

▲15%

3 506

EMERGING MARKETS 6%

INVESTMENTSEMERGINGMARKETS

- 14 -

EMERGING MARKETS STRATEGY

• JV with local partner with expertise

• Act as investor

• Property skill to give strategic input

• Bigger cities / metropoles

• Under traded

- 15 -

AFRICA

• 5 operational malls

• Continued headwinds in Africa due to USD strength, weak commodity prices

• Defensive assets

› Ikeja City Mall

› Manda Hill

› Accra Mall

• Focus will be on:

› Delivering Kumasi and settling West Hills and Achimota

› Managing assets through the cycle

› Improving liquidity in the portfolio

• Achimota – SACSC Award for top shopping centre

developed outside of South Africa

* Data provided at 100% level

Attacq owns 31.25% of AttAfrica assets and 25% of Ikeja City Mall

PROPERTY GLAValuation (USD’000)

Attacq share(USD’000)

Value / m²(USD’000) VACANCY %

Operational portfolio summary* 127 660 m² 562 400 102 902 4 405 / m² 4.0

- 16 -

SERBIA

• Attacq has a 25% shareholding in Atterbury Serbia

• Atterbury Serbia acquired 33% shareholding in existing portfolio of five properties with a total value of €228 million

• Shoppi Subiotica added to portfolio April 2016

• Additional 17% acquired in portfolio by Atterbury Serbia post year end

• Prime portfolio asset is the Ušće Shopping Centre, Serbia’s largest mall

• Further property to be acquired at pre-agreed yield: October 2016

• 50/50 development fund capitalised with €40 million to undertake retail developments – development targets identified

PROPERTY UŠĆE IMMO KANEM (H&M) OAZA SUBREAL SUBOTICA

Location Belgrade Belgrade Belgrade Belgrade Belgrade Subotica

GLA 47 363 m² 8 350 m² 2 655 m² 574 m² 4 417 m² 9 989 m²

Vacancy 1.38% 0% 0% 0% 0% 0%

Attacq effective holding 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%

DEVELOPED

MARKETS 15%

INVESTMENTSDEVELOPEDMARKETS

- 18 -

CYPRUS

• Attacq has a 48.8% shareholding in Atterbury Cyprus

• Atterbury Cyprus holds 99.7% of Shacolas Emporium Park and 99.5%

of the Mall of Engomi

• Cyprus economy returned to growth and interest rates reduced

• Both centres are trading well

PROPERTY SHACOLAS EMPORIUM PARK THE MALL OF ENGOMI

Location Nicosia Nicosia

GLA 47 000 m² 13 600 m²

Value €170.0 million €37.8 million

Vacancy 2.3% 0%

Attacq effective holding 48.6% 48.5%

Potential expansion 6 500 m² 1 300 m²

- 19 -

MAS

• Historically had a Western European focus on Germany, UK and Switzerland

› Expanded target markets to include Central and Eastern Europe (“CEE”)

• 41.4% held by Attacq at year end

• Attacq equity accounts for MAS

› R2.7 billion equity accounted value vs market value of R2.9 billion

• Karoo agterskot vested during year at R479.8 million, sold R200 million MAS

shares thereafter at R22 / share

• Brexit – Forex losses of 7.2 euro cents per share due to drop in Sterling

MAS HIGHLIGHTS

• Admitted into SAPY index – December 2015. Share liquidity increased

• Annual distributions increased by 34%

• 12% LTV to move towards 40% in 2017 – deploy capital into pipeline

• Rental income increased by 63%

• Strategy to invest in CEE

› Prime Kapital JV for expansion into CEE

• R1.2 billion capital raised

DEVELOPMENTS 13%

DEVELOPMENTS

- 21 -

WATERFALL BULK

m² JUNE 2016 % APPROVED BULK JUNE 2015 % APPROVED BULK

Total approved bulk 1 871 835 100.0 1 831 248 100.0

Completed – held (347 546) (18.6) (211 897) (11.6)

Completed – sold (61 963) (3.3) (61 963) (3.4)

Under construction (140 321) (7.5) (209 467) (11.4)

Remaining bulk total 1 322 005 70.6 1 347 921 73.6

Remaining for development 1 224 886 65.4 1 269 161 69.3

Newly secured 97 119 5.2 78 760 4.3

65.4%

5.2%

18.6%

3.3%

7.5%

69.3%

11.4%

3.4%

11.6%

4.3%

June 2016 June 2015

REMAINING FOR DEVELOPMENT

REMAINING FOR DEVELOPMENT - NEW BULK SECURED

COMPLETED - HELD

COMPLETED - SOLD

UNDER CONSTRUCTION

- 22 -

NEW DEVELOPMENTS

• JV with Zenprop ±35 000 m²

› Office development

• JV with Barrow Group ±38 000 m²

› 126 Residential units, Hotel and Office

• Gateway Building ±13 900 m²

- 23 -

SANLAM JV

• 100 Ha of additional land

• Attacq has the right to increase its shareholding to 50%

• Economies of scale

• Availability of bridging funding

• Attacq will receive development fees

• Attacq will perform the asset management

DISTRIBUTION

CAMPUS

LOGISTICS

PRECINCT

ACCESS

PARK

MALL OF AFRICA

WATERFALL CITY

- 24 -

WATERFALL SECOND WAVE

• What after Mall of Africa?

• Catalyst for growth:

Mall of Africa and 1.3 Ha Waterfall Park

• Projected growth of office space at Waterfall City ±30% p.a.

until 2020/21

• Examples

• Benefits of Waterfall

› Central location

› Infill development

› Excellent access

› Unique urban design and infrastructure

› 1,3 Ha Waterfall Park

• Corporate consolidation

• Economic benefit

Source: Urban Studies Newsletter, June 2016

FINANCIAL RESULTS

- 26 -

BALANCE SHEET

^ Includes non-current assets held for sale

* Investments includes equity and net loans advanced

R’000 JUNE 2016 JUNE 2015 % CHANGE

Investment properties^ 19 591 664 16 187 873 21.0

Investments*^ 6 222 856 5 105 058 21.9

Other assets 1 815 157 2 007 750 (9.6)

Total assets 27 629 677 23 300 681 18.6

Interest bearing debt 11 457 520 9 209 530 24.4

Non-interest bearing debtand other liabilities

2 700 837 2 126 701 27.0

Total liabilities 14 158 357 11 336 231 24.9

Equity attributable to owners of the holding company

13 484 521 11 957 198 12.8

Minority interest (13 201) 7 252 (282.0)

Equity 13 471 320 11 964 450 12.6

Investment properties increased primarily due

to the completion of eight new developments, including the Mall of Africa

Increase largely due to increase in

MAS, Cyprus, Serbia, Nigeria and theMall of Namibia

Additional debt was incurred to fund capital expenditure and certain global investments

Deferred tax liabilities increased substantially due to higher capital gains

taxation rate

Attacq holds 50% in the two Newtownlegal entities

- 27 -

TOTAL ASSETS

15 000

20 000

25 000

30 000

June 14 Investment

properties

Other

non-current

assets

Investments Current

assets

June 15 Investment

properties

Other

non-current

assets

Investments Current

assets

June 16

R’million

18 464.9

3 358.5350.0

714.0413.3 23 300.7

3 403.8 47.6

1 117.8 (240.2) 27 629.7

- 28 -

INVESTMENT PROPERTIES

10 000

12 000

14 000

16 000

18 000

20 000

June 14 Purchased Sold Capex FVA -

development

under

construction

FVA -

development

rights

FVA -

completed

June 15 Sold Capex FVA -

development

under

construction

FVA -

development

rights

FVA -

completed

June 16

R’million

12 829.3348.8 (308.6)

2 207.6

591.6 84.5434.7 16 187.9 (286.3)

2 615.8

758.3 (242.0)557.9 19 591.6

- 29 -

0

6 000

12 000

18 000

June 14 Completed

buildings

Development

rights

Developments

under construction

June 15 Completed

buildings

Development

rights

Developments

under construction

June 16

R’million

INVESTMENT PROPERTIES | CONTINUED

12 829.3

3 491.8 133.9 (267.1) 16 187.9

3 218.6 75.6 (1 438.9)18 043.2

81.4%

6.6%

12.0%

70.8%

13.0%

16.2%June 2016 June 2015

COMPLETED BUILDINGS

DEVELOPMENTS UNDER CONSTRUCTION

DEVELOPMENT RIGHTS

- 30 -

INVESTMENTS

2 7222 538

892 877

599

381 344 367 327227 191 163 143 161

549

52 53 84

656

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015

MAS Cyprus AttAfrica Nova Eventis Serbia Ikeja Other Namibia APH Artisan Wingspan Mauritius

EQUITY LOAN AGTERSKOT

R’million

- 31 -

INTEREST BEARING DEBT

R’000 JUNE 2016 JUNE 2015

Total net interest bearing debt 11 020 239 8 462 385

Long-term 10 445 221 8 863 852

Short-term 265 276 326 329

Assets held for sale 747 023 -

Overdraft - 19 349

Cash on hand (437 281) (747 145)

Total assets 27 629 677 23 300 681

Gearing 39.9% 36.3%

6.3%

45.0%

7.8%3.1%

9.5%

28.0%

0.3%INVESTEC BANK

NEDBANK

RMB

SANLAM

ABSA

STANDARD BANK

BANK OF CHINA

8.2%

41.5%

8.5%3.6%

11.8%

26.4%

June 2016 June 2015

2.5% of facilities are due in the next 12 months, excluding facilities in respect of non-current

assets held for sale

Consists of eight properties transferred after

year end into a SPV held 80/20 by Equites and

AWIC respectively

The increase is driven mainly by a R2.6 billion

increase in funding for development activity in Waterfall

- 32 -

INTEREST BEARING DEBT | CONTINUED

R’000 JUNE 2016 JUNE 2015

Facilities utilised 11 457 520 9 190 181

Committed facilities unutilised 2 408 869 2 764 899

Total committed facilities 13 866 389 11 955 080

Total debt hedged of facilities utilised 9 285 136 7 055 758

% hedged of facilities utilised 81.0% 76.8%

Cost of floating debt 8.4% 7.6%

Hedge premium 0.8% 1.4%

Weighted average cost of debt 9.2% 9.0%

Net cash on hand 437 281 727 796

Cash on hand 437 281 747 145

Less: Overdraft utilised - (19 349)

Committed working capital facilities 290 000 260 000

Total debt hedged including forward starting hedges 11 017 993 8 931 100

Total hedges as % of total committed facilities 79.5% 74.7%

Marginal increase driven by higher funding rates during the current year

Increase due to R2 billion forward starting hedges that have commenced during the current year

To reduce the impact of volatility in interest

rates, the Group hedged more facilities during this year

- 33 -

0

2 000

4 000

6 000

8 000

10 000

12 000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+

HEDGING TOTAL DEBT

INTEREST BEARING DEBT | CONTINUED

Indicative roll-off profile (R’million)

• Weighted average term of hedges: 4.1 years

(5.1 years including forward-starting)

• Weighted average term of debt: 3.7 years

PwC development reaching funding peak

and forward-starting hedges commencing

81.0% hedgedARF three year

tranche maturing

USD and EUR

debt maturing

ARF five year

tranche maturing

Mall of Africa

five year debt maturing

- 34 -

LAST 12 MONTHS BASE RATES MOVEMENT

5%

6%

7%

8%

9%

10%

Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016

3m JIBAR 5y Swap5 YEAR SWAP

Cost of carry:

160 bpsNenegate

Speculation that

Gordhan may quit

Cost of carry:

56 bps

- 35 -

INCOME STATEMENT

R’000 JUNE 2016 JUNE 2015 % CHANGE

Net rental income 1 118 273 954 050 17.2

Gross rental income 1 621 018 1 312 935 23.5

Property expenses (502 745) (358 885) 40.1

Operating profit 1 219 537 854 051 42.8

Fair value adjustments 1 041 553 1 114 224 (6.5)

Finance costs (839 975) (685 872) 22.5

Profit for the year 1 384 999 984 161 40.7

Positively impacted by the completion of eight buildings

Includes R345.7 million municipal charges

Includes foreign exchange gains ofR211.6 million and R145.0 million on the

disposal of the Mauritius assets

Consists of R1.1 billion for properties and

R32.6 million on mark-to-market

Funding the growing property portfolio

- 36 -

EQUITY MOVEMENT

8 000

10 000

12 000

14 000

June 14 Share issues A-F-S

reserve

Distributable

reserve

FCTR Share-based

payment

reserve

Acquisition

of NCI

reserve


reserve

Distributable

reserve

FCTR Share-based

payment

reserve

June 16

NAV bridge (R’million)

9 912.2

640.6598.8

978.7 (66.2) 7.0 (113.9) 11 957.2 3.4 164.9

1 075.9273.0 10.1 13 484.5

14

16

18

20


reserve

Distributable

reserve

FCTR Share-based

payment

reserve

Acquisition

of NCI

reserve


reserve

Distributable

reserve

FCTR Share-based

payment

reserve

June 16

NAVPS bridge (R)

14.770.28

0.85

1.40 (0.09) 0.01 (0.16) 17.06 0.000.23

1.540.39 0.01 19.23

LOOKING AHEAD

- 38 -

LOOKING AHEAD

Risks

• Slower growth in SA and potential rating downgrade

• Political uncertainty in SA

• Local services / supply: power and water

• Increasing tenant arrears and defaults

• Persistent low demand for commodities

• Brexit

• US elections and interest rate hikes

Market opportunities

• Attacq has the ability to look through the cycle

• Cost of occupancy

› Green buildings

› New builds are more efficient

› Solar panels

• Instability creates opportunities

• Corporate HQ consolidation and the central location

of Waterfall City

• Leveraging of relationships, i.e. MAS, Zenprop, Barrow,

Atterbury, Sanlam, Equites and Artisan

• LaunchLab initiative

- 39 -

LOOKING AHEAD | CONTINUED

Key focus areas

• Leverage the opening of Mall of Africa

• Waterfall

› Logistics

› Corporate consolidation

• Non-GLA revenue

• Reduce the cost of occupancy for tenants

• Consolidation and stabilisation of the African portfolio

• Manage liquidity

• Optimise balance sheet / recycle capital

Potential going forward

• Imagine?

• Completion of Mall of Africa: the game changer

• 783 000 m² serviced land in centre of Gauteng

• 215 600 m² active inquiries on Waterfall

• Launch of first residential apartments at Waterfall City

• MAS income growth potential and Prime Kapital

• Extension of the Cyprus portfolio

• New development opportunities with local partner in Serbia

- 40 -

BENEFITS BEYOND OUR BOTTOM LINE

• CSI contribution for 2016: R6.45 million

• 366 hours spent on CSI

• More than 2 000 individuals

• Columba Leadership

• Bana ba Rona Early Childhood Development Centre

› 75 children

› Nine employment opportunities

• 11 post-matric bursaries

• 26 SMEs benefitted from ESD programmes

› Property Point

› Royal Bafokeng ED

• Attacq the Future

DEVELOP

GROW

INVEST

“Give a man a fish, and you feed him for a day.

Teach him how to fish, and you feed him for a lifetime.”

Chinese proverb

QUESTIONS& ANSWERS

- 42 -

DISCLAIMER

This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including statements with

respect to the company’s business, financial condition and results of operations. These statements, which contain the words “anticipate”, “believe”, “intend”, “estimate”,

“expect”, “forecast” and words of similar meaning, reflect the directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on

circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There

are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past

performance of the company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the company

expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is

intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements.

This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness,

accuracy or fairness. This information is still in draft form and has not been legally verified. The financial information included herein is in draft form and unaudited. The company, its

advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current the information contained in this

presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they

would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is

given by the company, or any of its subsidiary undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information or

opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection

therewith is accepted by any such person in relation to such information.

APPENDICES

- 44 -

WATERFALL

- 45 -

Buccleuch Interchange Buccleuch Interchange

Waterfall City Waterfall City

WATERFALL PROGRESS: 2008-20162

00

8

20

16

- 46 -

COMPLETED BUILDINGS

* Attacq owns an 80% undivided share. 100% values shown above^ Colgate, Mac Mac House and Magwa House. Attacq owns a 50% undivided share. 100% values shown above# Based on total GLA

PROPERTYMALL OF AFRICA* HILTI STRYKER SERVEST

MAXWELLOFFICE PARK^ CITY LODGE

Sector Retail Industrial Industrial Industrial Office Hotel

Location Waterfall Waterfall Waterfall Waterfall Waterfall Newtown

Primary GLA #131 038 m² 3 948 m² 3 220 m² 6 650 m² 17 748 m² 5 828 m²

Value R5.1 billion R59.3 million R61.3 million R157.0 million R495.8 million R106.5 million

Value / GLA #R38 920 / m² R15 020 / m² R19 037 / m² R23 609 / m² R27 936 / m² R18 274 / m²

- 47 -

PORTFOLIO AND INVESTMENTS OVERVIEW AS AT 30 JUNE 2016

SOUTH AFRICA

INDUSTRIAL PORTFOLIO

Angel Shack, Waterfallxx 100%

Cummins, Waterfall# xx 50%

Dräger, Waterfallxx 100%

Hilti, Waterfallxx 100%

Massbuild, Waterfall 100%

Medtronic, Waterfallxx 100%

Servest, Waterfallxx 100%

Stryker, Waterfallxx 100%

Westcon, Waterfallxx 100%

HOTEL PORTFOLIO

City Lodge, Johannesburg 50%

City Lodge, Pretoria 100%

City Lodge, Waterfall 100%

RETAIL PORTFOLIO

Andringa Walk, Stellenbosch 100%

Brooklyn Mall, Pretoria# 25%

Eikestad Mall, Stellenbosch# 80%

Garden Route Mall, George 100%

Glenfair Boulevard, Pretoria 100%

Lynnwood Bridge Retail, Pretoria 100%

Mall of Africa, Waterfall# 80%

Mill Square, Stellenbosch# 80%

MooiRivier Mall, Potchefstroom 100%

Newtown Retail, Johannesburg 50%

Waterfall Corner, Waterfall 100%

Waterfall Lifestyle, Waterfall 100%

Wingspan Property, Durban^ 34.4%

OFFICE AND MIXED USE PORTFOLIO

Altech, Waterfall# 50%

Aurecon, Pretoria 100%

Brooklyn Bridge Office Park, Pretoriaxx 100%

Cell C Campus, Waterfall 100%

Group Five, Waterfall 100%

Lynnwood Bridge Offices, Pretoria 100%

Majestic Offices, Johannesburg 50%

Maxwell Office Park, Waterfall# 50%

• Colgate

• Mac Mac House

• Magwa House

• Att House

• Golder

• Premier

• Honda

Newtown Junction, Johannesburg 50%

Novartis, Waterfall 100%

PwC, Sunninghill 100%

DEVELOPMENTS

OFFICE AND MIXED USE PORTFOLIO

Allandale Building, Waterfall 100%

PwC Tower and Annex, Waterfall# 75%

INDUSTRIAL PORTFOLIO

Amrod, Waterfall 100%

Dimension Data Wareouse, Waterfall 100%

Torre Industries, Waterfall 100%

LAND AND DEVELOPMENT RIGHTS

Le Chateau** 100%

Waterfall Land, Waterfall** 100%

KEY

** Vacant land

^ Accounted for as an investment in associate

^^ Accounted for as an investment

# Undivided share

xx Held for sale

All shareholdings represent Attacq’s effective interest

- 48 -

PORTFOLIO AND INVESTMENTS OVERVIEW AS AT 30 JUNE 2016 | CONTINUED

EMERGING MARKETS

RETAIL PORTFOLIO

AttAfrica^

• Accra Mall, Accra, Ghana 14.7%

• Achimota Mall, Accra, Ghana 23.4%

• West Hills Mall, Accra, Ghana 14.1%

• Kumasi City Mall, Kumasi, Ghana 23.4%

• Manda Hill, Lusaka, Zambia 15.6%

Atterbury Serbia^

• Ušće Mall, Belgrade, Serbia 8.25%

• Immo, Belgrade, Serbia 8.25%

• Kanem, Belgrade, Serbia 8.25%

• Oaza, Belgrade, Serbia 8.25%

• Subreal, Belgrade, Serbia 8.25%

• Shoppi, Subotica, Serbia 8.25%

• Development fund, Belgrade, Serbia 8.25%

Ikeja City Mall, Lagos, Nigeria^ 25.0%

The Grove Mall of Namibia, Windhoek, Namibia^ 25.0%

DEVELOPED MARKETS

RETAIL PORTFOLIO

Atterbury Cyprus^

• Shacolas Emporium Park, Nicosia, Cyprus 48.6%

• Mall of Engomi, Nicosia, Cyprus 48.5%

MAS (Germany, UK and Switzerland)^ 41.4%

Nova Eventis, Leipzig, Germany^^ 19.9%

KEY

** Vacant land

^ Accounted for as an investment in associate

^^ Accounted for as an investment

# Undivided share

xx Held for sale

All shareholdings represent Attacq’s effective interest

- 49 -

50 000

100 000

150 000

200 000

250 000

300 000

350 000

<1 year 1 – 2 years 3 – 5 years 6 – 10 years +10 years

AS AT JUNE 2016 AS AT JUNE 2015

GLA (m²)

PROPERTY AGEING OF GLA

19.3%

130 760

45.9%

311 712

7.6%

51 827

18.5%

125 594

8.7%

60 142

25.0%

141 711

30.6%

173 313

9.2%

51 827

22.0%

124 246

13.2%

74 699

Total GLA

June 2016: 680 035 m²

June 2015: 565 796 m²

- 50 -

PORTFOLIO OVERVIEW

# Primary GLA refers to the main rental generating GLA, e.g. warehouse, industrial, hotel, shop, office, ATM, mezzanine

Values provided above reflect Attacq’s undivided share in the property: *25%; ^80%

Retail portfolio

PROPERTY NAME LOCATION KEY TENANTSPRIMARY GLA#

m²

VALUATIONR’000

VALUER / m²

ANDRINGA WALK Stellenbosch Food Lovers Market, Game, USave 10 595 190 628 17 992

BROOKLYN MALL* Pretoria Checkers, Dis-Chem, Game, Woolworths 18 689 754 145 40 352

EIKESTAD MALL^ Stellenbosch Checkers, Woolworths 25 678 590 843 23 010

GARDEN ROUTE MALL George Dis-Chem, Game, Pick n Pay, Woolworths 53 015 1 307 652 24 666

GLENFAIR BOULEVARD Pretoria Dis-Chem, Shoprite Checkers, SuperSpar 15 927 433 000 27 187

LYNNWOOD BRIDGE - RETAIL Pretoria Planet Fitness, The Pro Shop, Woolworths 11 378 346 000 30 410

MALL OF AFRICA^ Waterfall Game, Shoprite Checkers, Woolworths 98 678 4 080 000 41 347

MILL SQUARE^ Stellenbosch Investec, Mertech 3 562 97 402 27 345

MOOIRIVIER MALL Potchefstroom Game, Shoprite Checkers, Woolworths 49 054 1 124 443 22 923

NEWTOWN JUNCTION Johannesburg Pick n Pay, Shoprite Checkers, Ster Kinekor 33 653 617 887 18 361

WATERFALL CORNER Waterfall Clicks, Shoprite Checkers, Woolworths 9 415 211 747 22 490

WATERFALL LIFESTYLE Waterfall Bounce, Virgin Active 7 139 127 123 17 807

TOTAL 336 783 9 880 870 29 339

Hotel portfolio

PROPERTY NAME LOCATION LEASE EXPIRYPRIMARY GLA#

m²

VALUATIONR’000

VALUER / m²

CITY LODGE - LYNNWOOD Pretoria 2020 7 946 189 000 23 786

CITY LODGE - NEWTOWN Johannesburg 2026 5 828 106 500 18 274

CITY LODGE - WATERFALL Waterfall 2025 5 744 98 267 17 108

TOTAL 19 518 393 767 20 175

- 51 -

PORTFOLIO OVERVIEW | CONTINUED


Values provided above reflect Attacq’s undivided share in the property: *50%; ~75%

Office and mixed use portfolio

PROPERTY NAME LOCATION KEY TENANTSLEASE

EXPIRYPRIMARY GLA#

m²

VALUATIONR’000

VALUER / m²

ALTECH* Waterfall Altech 2022 2 113 49 000 23 190

BROOKLYN BRIDGE OFFICE PARK Pretoria Counsel Chambers, SARS Mixed 23 525 637 000 27 078

CELL C CAMPUS Waterfall Cell C 2028 43 890 904 000 20 597

GROUP FIVE Waterfall Group Five 2026 25 782 612 000 23 737

LYNNWOOD BRIDGE - AURECON Pretoria Aurecon 2023 19 104 762 000 39 887

LYNNWOOD BRIDGE - OFFICES Pretoria Adams & Adams, Sanlam Mixed 13 399 485 000 36 198

LYNNWOOD BRIDGE - PHASE III Pretoria Aurecon, Citadel, Water Research Commission Mixed 14 219 416 000 29 256

MAXWELL OFFICE PARK - ATT HOUSE* Waterfall Attacq, Atterbury, Cipla Mixed 2 523 69 958 27 728

MAXWELL OFFICE PARK - COLGATE* Waterfall Colgate 2025 2 122 61 472 28 976

MAXWELL OFFICE PARK - GOLDER* Waterfall Golder Associates 2025 3 040 88 901 29 244

MAXWELL OFFICE PARK - HONDA* Waterfall Honda, City Connect Mixed 1 986 53 693 27 036

MAXWELL OFFICE PARK - MAC MAC HOUSE* Waterfall Black & Veatch, Strategic Solution Architects Mixed 3 144 85 713 27 262

MAXWELL OFFICE PARK - MAGWA HOUSE* Waterfall Diageo, DOW Mixed 3 609 100 796 27 929

MAXWELL OFFICE PARK - PREMIER* Waterfall Premier Foods 2024 2 000 56 068 28 034

NEWTOWN JUNCTION NEDBANK Johannesburg Nedbank 2024 29 911 630 000 21 062

NOVARTIS Waterfall Novartis 2024 7 982 215 043 26 941

PWC SUNNINGHILL~ Sunninghill PwC 2025 25 525 348 889 13 699

THE MAJESTIC Johannesburg Nedbank 2018 8 913 138 266 15 513

TOTAL 232 787 5 713 799 24 545

- 52 -


Industrial portfolio

PROPERTY NAME LOCATION LEASE EXPIRYPRIMARY GLA#

m²

VALUATIONR’000

VALUER / m²

ANGEL SHACK Waterfall 2021 4 652 36 692 7 887

MEDTRONIC Waterfall 2024 12 060 137 800 11 426

CUMMINS* Waterfall 2025 10 504 94 740 9 019

DRÄGER Waterfall 2024 5 027 75 294 14 977

HILTI Waterfall 2023 3 948 59 276 15 013

MASSBUILD DISTRIBUTION CENTRE Waterfall 2028 36 803 293 000 7 961

SERVEST Waterfall 2025 6 650 157 013 23 610

STRYKER Waterfall 2025 3 220 61 314 19 042

WESTCON Waterfall 2024 8 087 106 068 13 115

TOTAL 90 951 1 021 197 11 228


Values provided above reflect Attacq’s undivided share in the property: *50%

- 53 -


Values provided above reflect Attacq’s undivided share in the property: ~75%. Recently secured projects are not included above

Developments

PROPERTY NAME SECTOR COMPLETION DATEGLA

m²

% PRE-LET(GLA)

TOTAL CAPITAL COSTR’000

VALUE ESTIMATEON COMPLETION

R’000

ESTIMATEDDEVELOPMENT PROFIT

R’000

ALLANDALE BUILDING Office August 2016 14 848 >70 317 984 420 749 102 765

AMROD Industrial November 2016 38 455 100 329 488 365 802 36 314

DIMENSION DATA WAREHOUSE Industrial August 2016 8 230 100 73 705 83 772 10 067

PWC TOWER AND ANNEX~ Office January 2018 33 917 100 985 137 1 182 141 197 004

TORRE INDUSTRIES Industrial August 2016 8 910 100 106 674 124 581 17 907

TOTAL 104 360 1 812 988 2 177 045 364 057

- 54 -

0

100 000

200 000

300 000

400 000

500 000

Vacancy 2016 2017 2018 2019 2020 2021+

HOTEL 7 946 11 572

INDUSTRIAL 80 933

OFFICE 9 203 3 516 4 364 36 184 5 804 2 732 189 170

RETAIL 7 070 4 987 27 773 48 668 32 760 42 747 164 606

TOTAL 16 273 8 503 32 137 84 852 38 564 53 425 446 281

GLA (m²)

LEASE EXPIRY PROFILE

2.4% 1.3%4.7%

12.5%

5.7%7.8%

65.6%

- 55 -

AFRICA

* Held via AttAfrica# Opened November 2015^ Proposed size

PROPERTYACCRA

MALL*WEST HILLS

MALL*MANDA

HILL*ACHIMOTA

MALL*KUMASI CITY

MALL*^

IKEJA CITYMALL

Location Accra, Ghana Accra, Ghana Lusaka, Zambia Accra, Ghana Kumasi, Ghana Lagos, Nigeria

GLA 21 240 m² 28 466 m² 40 561 m² 15 170 m² 18 000 m² 22 223 m²

Vacancy 0% 0% 4.7% 18.0%# n/a 2.3%

Foot count 27 / m² 16 / m² 22 / m² 28 / m² Opening April 2017 30 / m²

Attacq effective holding 14.7% 14.1% 15.6% 23.4% 23.4% 25.0%

annual results - the vault financial results 25 looking ahead 37 ... checkers hyper in mall of...

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