ANNUAL RESULTS PRESENTATION - Growthpoint Statements/FY16 Growthpoint Annual... · ANNUAL RESULTS PRESENTATION For the year ended 30 June 2016 . AGENDA ... FY12 FY13 FY14 FY15 FY16

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


FY16 HIGHLIGHTS

Same as FY15

FY16 – strong focus

on 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


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 of 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


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


GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION

0

500

1 000

1 500

2 000

2 500

3 000

0

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


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


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


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


12.1% 11.6% 12.0%

5.3% 4.4% 4.8%

FY14 FY15 FY16


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


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


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


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%



73.9%

Unsecured 37.0%

Secured 63.0%



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


40.6%

36.8%

42.0%

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%

0

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%

0

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


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


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


52.8%

37.8%

9.4%

48.6%

39.0%

12.4%

48.6%

39.1%

12.3%

FY14 FY15 FY16


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


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


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


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


South Africa

OFFICE

FY16 FY15


Net property income 2 634 2 117


Vacancy % %


Arrears Rm Rm



Renewals % %


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


South Africa

INDUSTRIAL

FY16 FY15


Net property income 952 892


Vacancy % %


Arrears Rm Rm



Renewals % %


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


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


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


V&A Waterfront


FY16 FY15

Vacancies (%) 1.4 2.6


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



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


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


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


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 open 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


V&A Waterfront


- - R420,0m R483,0m


DEVELOPMENTS

& CAPITAL


Excludes R77,5m development

expenditure spent on Silo 3

which is classified as inventory

PORTFOLIO UPDATE GOZ Dorcas Street, Melbourne, VIC

41


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


GOZ


FY16 FY15

Vacancies (%) (1) 1.0 3.0


Provision for bad debts (B/S) (Rm) - -



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


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 over 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


GOZ



DEVELOPMENTS

& CAPITAL


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


32.1% 33.2% 34.0%

3.1% 2.7% 2.9%

FY14 FY15 FY16


13.4% 12.6% 13.0%

5.2% 4.3% 4.7%

FY14 FY15 FY16


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

0

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


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


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


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



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


68

ANNEXURE 17: INDUSTRIAL OVERVIEW RSA


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


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



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


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%



Retail 54%

Office 19%



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


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


Total 483,0


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)


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


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


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

ANNUAL RESULTS PRESENTATION - Growthpoint Statements/FY16 Growthpoint Annual... · ANNUAL RESULTS PRESENTATION For the year ended 30 June 2016 . AGENDA ... FY12 FY13 FY14 FY15 FY16

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