2
Introduction and Highlights
Financial Review
Operational Overview
RSA
GOZ
V&A
Acquisitions, Disposals, Developments and Commitments
Sustainability and CSI
Prospects
Annexures
AGENDA
4
INTRODUCTION TO GROWTHPOINT
Fully integrated internally managed property company employing 457 staff
R13,1 billion
Office
R14,6 billion
R7,3 billion R13,1 billion
AUD 1,57 billion
Industrial
Australia V&A
Waterfront Office Industrial Retail
The largest listed property company on the JSE with property assets valued at
R53,1 billion including 100% of Growthpoint Properties Australia (“GOZ”) and 50% of
the V&A Waterfront in Cape Town
Market capitalisation of R40,1 billion at 30 June 2012 (R23.00 per linked unit)
Diversified property portfolio comprising 403 properties in RSA, 41 properties in
Australia which is 64.5% owned and a 50% interest in the properties of the V&A
Waterfront
R5,0 billion
5
HIGHLIGHTS FOR THE YEAR UNDER REVIEW
33.2% Return to investors for the
year
Capital growth 25.6%
Income yield 7.6%
Distribution per linked unit 6.1% growth 139,0 cents
Repayment of CMBS Notes
New equity raised via placement
GOZ acquires office properties and
developments totalling
R1,5 billion additional investment in Growthpoint Properties Australia
R2,0 billion
R1,8 billion
AUD 346,2 million
Market value Jun 2012
R4,3 billion
Total cost Jun 2012
R3,1 billion
6
HIGHLIGHTS FOR THE YEAR UNDER REVIEW
37.1% Return on R3,1 billion
Australian investment for the year
Capital growth 25.4%
Income yield 11.7%
New equity raised via Distribution Re-Investment Plan (supported by 42.0% of unit holders on average)
Vacancies
Formalisation of sector-specific
development parameters with a
current development pipeline of
Increase in unsecured debt to 39.0%
of total RSA borrowings by increasing
corporate bond program by
Growthpoint’s foreign unitholding
R959,9 million
Jun 2011
5.0%
Jun 2012
4.0%
R1,6 billion
R1,5 billion
Jun 2011
11.8%
Jun 2012
15.3%
7
HIGHLIGHTS FOR THE YEAR UNDER REVIEW
Inclusion in JSE – Socially Responsible Investment Index (SRI)
Honeycomb BEE rating Level 4
Investment Analysts’ Award Best reporting and communication in
financial services sector
8
GROWTH IN DISTRIBUTION PER LINKED UNIT
51,1 56,3 59,1 63,9 67,8
55,4 58,3
62,1
67,1 71,2
106,5
114,6 121,2
131,0
139,0
0
30
60
90
120
150
FY2008 FY2009 FY2010 FY2011 FY2012
Final distribution Interim distribution Cents
9
GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION
Cents R’bn
0
400
800
1200
1600
2000
2400
0
10
20
30
40
50
60
Tangible assets (R’bn) Market cap (R’bn)
Unit price (cents) NTAV per unit (cents)
11
SIMPLIFIED CONSOLIDATED INCOME STATEMENT
Jun 2012
R’ million
Jun 2011
R’ million Increase
Gross property revenue 5 107 4 410 15.8%
RSA 4 096 3 803 7.7%
GOZ 1 011 607 66.6%
Property expenses (1 102) (1 001) 10.1%
RSA (997) (948) 5.2%
GOZ (105) (53) 98.1%
Net property income 4 005 3 409 17.5%
Other operating expenses (176) (135) 30.4%
Net property income after operating expenses 3 829 3 274 17.0%
Finance costs (1 677) (1 237) 35.6%
RSA (1 276) (950) 34.3%
GOZ (401) (287) 39.7%
Finance income 425 107 297.2%
Investment income from V&A – distributable 369 18 1950.0%
Investment income from V&A – non-distributable (76) - 100.0%
Other finance income 132 89 48.3%
Adjustment for NCI, foreign exchange & taxation (excl CGT & deferred tax) (182) (72) 152.8%
Profit before debenture interest 2 395 2 072 15.6%
Distribution for the year 2 395 2 072 15.6%
Note:
Average exchange rate at R8.01 /AUD (Jun 2011: R6.91/AUD) for GOZ
50% interest in V&A Waterfront included for full year in Jun 2012 (Jun 2011: 23 days)
32.1%
12
EXPENSE TO INCOME RATIOS
Property expense ratio (%)
Operating expense ratio (%)
RSA V&A
GOZ
12
27.4% 27.6% 26.7%
15.1% 14.3%
16.7%
Property expense ratio (%)
Operating expense ratio (%)
Property expense ratio (%)
Operating expense ratio (%)
26.0%
6.1%
0%
5%
10%
15%
20%
25%
30%
35%
Jun 2012
10.4% 8.7%
11.4%
4.7% 5.6%
5.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Jun 2012 Jun 2011 Jun 2010
24.3% 24.9% 24.5%
3.1% 2.7% 2.2%
0%
5%
10%
15%
20%
25%
30%
35%
Jun 2012 Jun 2011 Jun 2010
13
CONSOLIDATED BALANCE SHEET (EXTRACTS)
Jun 2012
R’ million
Jun 2011
R’ million
Increase/
(decrease)
Property portfolio * 48 106 40 919 17.6%
RSA 34 988 32 495 7.7%
GOZ 13 118 8 424 55.7%
50% Investment in V&A Waterfront 4 912 4 950 (0.8%)
Borrowings ** 19 731 19 093 3.3%
RSA 13 613 14 249 (4.5%)
GOZ 6 118 4 844 26.3%
Linked unitholders’ interest (NAV) 28 543 24 884 14.7%
RSA 27 653 24 325 13.7%
GOZ 890 559 59.2% * Includes R515m of properties reclassified as held for sale (Jun 2011 – R539m)
** Excludes fair value adjustments
Note:
Closing exchange rate at 30 Jun 2012 R8.35/AUD (Jun 2011 – R7.24/AUD)
14
PROPERTY PORTFOLIO
Annexures
RSA
Jun 2012
R’ million
GOZ
Jun 2012
R’ million
Total
Jun 2012
R’ million
V&A
Jun 2012
R’ million
Balance at 1 Jul 2011 32 495 8 424 40 919 4 783
Acquisitions 3 & 19 575 2 283 2 858 -
Disposals 4 & 19 (644) (43) (687) -
Foreign exchange translation - 1 349 1 349 -
Developments and capital
expenditure
883
831
1 714
128
Sub-total 33 309 12 844 46 153 4 911
Fair value adjustment* 1 679 274 1 953 39
Balance at 30 Jun 2012 34 988 13 118 48 106 4 950
Long-term property assets 34 473 13 118 47 591 4 950
Properties held for sale 5 515 - 515 -
* Fair value adjustment represents 4.2% of investment property portfolio (excl V&A Waterfront)
15 BORROWINGS – LOAN TO
VALUE & INTEREST COVER RATIO
RSA
LTV (incl V&A) *
Interest cover ratio (incl V&A)
GOZ
LTV *
Interest cover ratio
NET ASSET VALUE & NET
TANGIBLE ASSET VALUE
times %
times %
NAV (Per linked unit consolidated)
NTAV (Per linked unit consolidated)
* Based on nominal value of interest bearing borrowings and net of
cash balances
1601 1499
1365
1638 1563
1444
0
200
400
600
800
1000
1200
1400
1600
1800
Jun 2012 Jun 2011 Jun 2010
Cents
33.9%
37.9%
29.9%
3.5 3.2 3.1
0
1
2
3
4
5
6
7
8
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Jun 2012 Jun 2011 Jun 2010
44.4%
55.4% 53.9%
2.2 1.9 1.7
0
1
2
3
4
5
6
7
8
0%
10%
20%
30%
40%
50%
60%
Jun 2012 Jun 2011 Jun 2010
16
BORROWINGS
Jun 2012
R’ million
% of total
RSA debt
Jun 2011
R’ million
% of total
RSA debt
RSA
Secured debt: 8 303 61.0% 11 249 78.9%
Bank debt 6 853 50.3% 8 080 56.7%
Institutional financier 1 450 10.7% 1 200 8.4%
CMBS - - 1 969 13.8%
Unsecured debt: 5 310 39.0% 3 000 21.1%
Bank debt 2 000 14.7% 2 000 14.1%
Corporate bonds 2 510 18.4% 1 000 7.0%
Commercial paper 800 5.9% - -
Total RSA debt 13 613 100.0% 14 249 100.0%
GOZ
Secured debt:
Bank debt 6 118* 4 844*
Consolidated debt 19 731 19 093 Note: Refer to Annexure 15 for a breakdown of debt
* Includes a cumulative foreign exchange difference of R1,1 billion (30 Jun 2011: R379,0 million)
17
BORROWINGS (CONT’D)
R750,0 million bond issue (GRT05) in Jan 2012 utilised for additional investment in GOZ
Total DRIP of R959,9 million utilised for acquisitions, capital expenditure and reduction
of debt
RSA: 83.1% (2011: 77.7%) of interest rates fixed for a weighted average of 4.9 years
(2011: 5.3 years)
Unutilised committed facilities (RSA) available of R2,1 billion
Growthpoint currently enjoys the following Moody’s ratings, with a stable outlook:
Global long-term Baa3
Global short-term P-3
National long-term A-2.za
National short-term P-2.za
Subsequent to 30 Jun 2012 :
R400 million commercial paper issue rolled and downscaled to R300,0 million at
JIBAR + 21 basis points
R400 million commercial paper issued rolled and upscaled to R500,0 million at
JIBAR + 21 basis points
19 OPERATIONAL
OVERVIEW
RSA
19
The P
lace, 1
Sandto
n D
rive, S
andto
n
SIMPLIFIED INCOME STATEMENT (EXTRACTS) RSA
Jun 2012
R’ million
Jun 2011
R’ million Increase
Gross property revenue 4 096 3 803 7.7%
Retail 1 441 1 374 4.9%
Office 1 712 1 555 10.1%
Industrial 943 874 7.9%
Property expenses (997) (948) 5.2%
Retail (401) (390) 2.8%
Office (390) (367) 6.3%
Industrial (206) (191) 7.9%
Net property income 3 099 2 855 8.5%
Other operating expenses (128) (101) 26.7%
Net property income after operating expenses 2 971 2 754 7.9%
Finance costs (1 276) (950) 34.3%
Finance income 416 101 311.9%
Investment income from V&A 369 18 1950.0%
Investment income from V&A – non-distributable (76) - 100.0%
Other finance income 123 83 48.2%
Taxation (excl CGT and deferred tax) 2 (1) 300.0%
Profit before debenture interest 2 113 1 904 11.0%
Note:
50% interest in V&A Waterfront included for full year in Jun 2012 (Jun 2011: 23 days)
20
21
CONSOLIDATED OPERATIONS – RSA (EXCLUDING V&A)
Jun 2012 Jun 2011
Vacancies (%) 4.0% 5.0%
Total arrears (R’million) 32,6 34,8
Bad debts (R’million) 7,8 9,6
Average in force escalations (%) 8.4% 8.3%
Renewal success rate (%) 75.2% 65.8%
Weighted average renewal growth (%) 2.7% 3.1%
Weighted average future escalations on renewals (%) 8.1% 8.1%
Number of employees 457 456
Net Property Income per employee (R) 6 781 181 6 260 964
22
RSA - RETAIL Trading density growth remains above the IPD benchmark
notwithstanding construction activity at various centres
Rent/Turnover ratios are affordable, resulting in positive rent
reversions at renewal
Vacancies, due to redevelopments, will reduce significantly
with the completion of the redevelopment at Brooklyn Mall
Demand for space at Top 16 centres is robust with national
retailers seeking expansion opportunities
Entry of new international retailers to SA market provides
further opportunity to enhance tenant mix albeit we are not
expecting a massive inflow
Costs are under control but subject to pressure
Redevelopments/Refurbishments/Extensions: R780 million next
financial year (Brooklyn Mall, Kolonnade, River Square,
Northgate, Waterfall Mall and Walmer Park)
Vacancy:
Jun
2012
%
Jun
2011
%
Total portfolio 3.1 2.9
Top 10 centre vacancy 1.6 1.3
Balance of portfolio 4.4 4.3
Arrears: R’million R’million
Total 14,8 16,9
Bad debt provision 5,2 5,3
Renewals: % %
Renewal success rate 81.1 81.2
Renewal rental growth 6.7 3.5
Booklyn Mall, Pretoria
23
RSA - OFFICE Notwithstanding challenging market conditions, vacancies have
been reduced from 8.1% to 5.8%, significantly outperforming
the national average for Q2: 2012 of 10.5%
New letting of 108 119m² was achieved due to continued focus
by our teams and by offering attractive incentives to brokers
and tenants
142 665m² of leases expiring in the year were renewed,
improving the renewal success rate to 74.6%. The renewal
growth rate has been under pressure due to the tougher
market environment
Eight new developments and major redevelopments, totalling
44 634m² have been completed or are in progress. Two of the
developments achieved Green Star certifications from GBCSA
Arrears have been kept under control through continued
proactive credit control, ending the year at 5.4% of
collectables
Maximising rental growth, keeping costs under control and
exploring new acquisition and development opportunities will
be key future focus areas
Vacancy:
Jun
2012
%
Jun
2011
%
Total portfolio 5.8 8.1
Arrears: R’million R’million
Total 10,9 8,2
Bad debt provision 6,2 5,8
Renewals: % %
Renewal success rate 74.6 57.5
Renewal rental growth (1.5) 2.1
Summer Square, Rivonia
24
RSA - INDUSTRIAL Trading conditions are sound. Contradicts negative factory
output data and sentiment
Continued positive demand for warehousing and distribution
facilities (>10 000m²)
Performance of mini and midi units still under
pressure. Highest vacancies and lowest growth
Increasing demand for manufacturing facilities
Vacancy levels expected to remain at current levels. Arrears
management remains key area of focus
New development enquiries increasing, however land prices
remain high
Utility costs and impact of rates increases remain an area of
concern
Strategy:
Pursue development opportunities on existing land holdings
Redevelop properties in key nodes
Pursue acquisition opportunities if financially viable
Dispose non-performing properties into “Seller’s” market
Vacancy:
Jun
2012
%
Jun
2011
%
Total portfolio 3.4 4.3
Arrears: R’million R’million
Total 6,9 9,7
Bad debt provision 2,8 5,7
Renewals: % %
Renewal success rate 74.0 63.1
Renewal rental growth 4.0 7.1
Ellerines, Cape Town
25
AUSTRALIA – GOZ
33-3
9 R
ichm
ond R
oad,
Kesw
ick,
SA
OPERATIONAL OVERVIEW
25
26
Jun 2012
R’ million
Jun 2011
R’ million
Increase
Gross property revenue 1 011 607 66.6%
Property expenses (105) (53) 98.1%
Net property income 906 554 63.5%
Other operating expenses (48) (34) 41.2%
Net property income after operating expenses 858 520 65.0%
Finance costs (401) (287) 39.7%
Finance income 9 6 50.0%
Adjustment for non-controlling interest, foreign
exchange difference and taxation (excl CGT and
deferred tax)
(184)
(71)
159.2%
Profit before debenture interest 282 168 67.9%
Distribution for the year 282 168 67.9%
Note:
Average exchange rate R8.01/AUD (2011: R6.91/AUD) for GOZ
The number of properties in Australia has increased from 37 in Jun 2011 to 41 in Jun 2012. Refer to Annexure 21 for net property income like for
like growth.
SIMPLIFIED INCOME STATEMENT (EXTRACTS) GOZ (100%)
27
GROWTHPOINT PROPERTIES AUSTRALIA – GOZ (CONT’D)
LARGER PROPERTY
PORTFOLIO/
GREATER
DIVERSIFICATION
STRONG
OPERATING
PERFORMANCE
CAPITAL
MANAGEMENT
Statutory profit: AUD49,5 million; 14.0% above FY2011
Distributable income: AUD57,7 million; 17.7 cps; 58.5% above FY2011
Distributions paid and provided of AUD57,4 million; 17.6 cps – above guidance & 2.9% above FY2011
result
All Group operating expenses, inclusive of interest expense, as a percentage of net property income
have reduced to 51% from 58% in the prior year
AUD1,6 billion of property assets
A concentration in office 47% of portfolio value and industrial 53% of portfolio value
Acquired, or contracted to acquire, 6 properties during FY2012, for a total price of AUD346,2 million
(before transaction costs), at an average initial yield of 8.9%
Greater diversification of tenants and geographic locations
Raised or issued equity in excess of AUD640 million over the last 3 years, driving over 250% growth of
the property portfolio
Recently introduced a distribution reinvestment plan
Debt facilities of the Group total AUD835 million, with an average duration of 3.5 years. No
refinancing requirement until December 2014
Cost of capital reducing over time – ASX price above NTA, whilst average cost of debt has fallen
(restructuring swaps plus incremental debt at lower rates)
28
GROWTHPOINT PROPERTIES AUSTRALIA – GOZ (CONT’D)
STRONG
FUNDAMENTALS FOR
PROPERTY & A-REIT
INVESTMENT
QUALITY
PROPERTY
PORTFOLIO
GOZ owns a diversified portfolio of modern, well leased office and industrial properties,
occupied by quality tenants, with a rising rental income
Limited lease expiry risk in the next 3 years: FY13 – 0.8%, FY14 – 7.5%, FY15 – 6.5% of rental
income
WALE: 7.2 years; Occupancy: 99.7%; WARR: 3.2%; WACR: 8.3%
Top 5 tenants: Woolworths, General Electric, Commonwealth Government, Coles Group and
Sinclair Knight Merz
Increase into office market with strategic positioning into Brisbane
Strong AUS economic growth has continued in FY12
There is a limited supply of new developments in major office and industrial markets. Tenants
seeking new quality accommodation have fewer choices
The spread between property yields or capitalisation rates and the long-term government bond
rate is historically high
A-REIT sector has outperformed other asset classes in the last 6 months. Domestic and global
investors are chasing “yield” and a safer haven for funds
29
OPERATIONAL OVERVIEW
V&A WATERFRONT
Victoria and Alfred Waterfront, Cape Town
30
SIMPLIFIED INCOME STATEMENT (EXTRACTS) V&A (50%)
Jun 2012
V&A
R’ million
Jun 2011
V&A
R’ million
Gross property revenue 412 25
Property expenses (107) (8)
Net property income 305 17
Other operating expenses (25) -
Net property income after operating expenses 280 17
Net finance income 12 1
Taxation (excl CGT and deferred tax) 1 -
Profit before debenture interest 293 18
Distribution for the year 293 18
Interest paid to Growthpoint 369 18
Interest paid to Growthpoint – exceeding distributable income (76) -
31
V&A WATERFRONT (CONT’D) RETAIL
Retail sales increased by 12.8% measured against the
comparative 12 month period
Footfall consistently strong with 2.5% growth for the year,
putting annual visitorship in excess of 21,9 million
Vacancies in the retail portfolio reduced from 11.8% at June
2011 to 4.6% at June 2012 following improved letting at the
Clock Tower after the refurbishment, whereby weaker retail
space was converted to office space. The Victoria Wharf
vacancy is at 1.9% following the letting of some large spaces
and is expected to reduce further following the take up of
remaining vacancies
OFFICE
Office vacancies have been reduced to 2.4% at June 2012 from
3.3% at June 2011 with just over 2 000m² remaining vacant
73% of re-developed Clock Tower has been let
Tenant retention is 100% for the period
The development of a 18 100m² office space in the Silo precinct
is under way for Allan Gray with completion expected in
September 2013
Vacancy:
Jun
2012
%
Jun
2011
%
Total portfolio 1.6 3.5
Arrears: R’million R’million
Total 38,1 23,6
Bad debt provision 19,9 14,9
Renewals: % %
Renewal success rate 83.7 -
Renewal rental growth 2.7 -
32
V&A WATERFRONT (CONT’D) HOTEL
Reduced hotel occupancy levels and average rates per room
negatively impacted on turnover rental from the hotel and
leisure sector
The expectation is for this to improve slightly over the coming
12 months and we continue to work closely with the hotel
operators to help ease the current situation
INDUSTRIAL AND FISHING INDUSTRY
The industrial portfolio with it’s exposure to the fishing
industry remains stable with 100% occupancy during the period
The recent decision by Home Affairs banning cruise liners from
docking at the V&A was detrimental, however positive steps
are being taken to have this decision reversed and in the
meantime the focus has changed to target vessels servicing the
oil exploration and research industries
33
V&A WATERFRONT (CONT’D) DEVELOPMENT AND LEASING UPDATE
Allan Gray development currently on track for completion in
September 2013
Food court refurbishment to be completed early November
2012
A small residential development adjacent to the Allan Gray
office development to be launched early 2013
“Zara” opened on Friday, 17 August 2012 and is the first Zara
store to open in the Western Cape
Terms agreed with “Topshop” for the first Western Cape store
to open early in 2013
Lease signed with “Moyo” for a new concept design restaurant
in the old “Paulaner Brauhaus” space in the Clock Tower
precinct with opening scheduled for the Festive Season
First Food & Wine market known as “Market on the Wharf” to
open in the ex Musica space adjacent to Nobel Square
35
Retail Office Industrial GOZ Total V&A
Purchase price of acquisitions 424 146 5 2 283 2 858 -
Selling price of disposals 288 191 165 43 687 -
Developments and capex 174 350 359 831 1 714 128
Note: Refer to Annexures 3, 4 and 19 for yields on Acquisitions and Disposals
In aggregate, RSA properties sold at R1,0 million profit on book value and R184 million
profit on cost
RSA Properties (excl V&A) where amounts in excess of R30,0 million were spent on
development during the period include:
Brooklyn/Design Square 75% (retail) R36,2m
OK Empangeni (retail) R32,0m
Mayfair on the Lake (office) R55,0m
Grenville (industrial) R74,8m
Greenbushes (industrial) R72,4m
Growthpoint Industrial Estate (industrial) R33,9m
Adcock Ingram (industrial) R32,0m
ACQUISITIONS, DISPOSALS AND DEVELOPMENTS
36
Rosebank:
35 000m² office development near Rosebank Gautrain Station
Estimated development value – R700m
Commencement – will be tenant driven
DEVELOPMENTS
MTC:
6 700m² office development underway opposite
Midrand Gautrain Station
2 500m² let to Gautrain Management Agency
Development value – R105m
Completion – 31 May 2013
Lakeside Centurion:
25 000m² office development to be developed in
phases
Phase 1 underway – 5 000m²
Development value Phase 1 – R74m
Completion Phase 1 – 31 December 2012
37
RSA Sector R’ million
Commitments for developments
Brooklyn/Design Square, Brooklyn, Pretoria Retail 110,8
Waterfall Mall, Rustenburg Retail 215,8
Hatfield Festival, Hatfield, Pretoria Office 200,6
MTC, Midrand Office 98,8
Meadowbrook Estate, Meadowbrook, Germiston Industrial 81,5
Other below R50,0 million 203,1
TOTAL 910,6
Commitments for acquisitions
Menlyn Corner, Menlyn, Pretoria Office 213,0
Deloitte & Touche KZN, La Lucia Ridge, Durban Office 113,4
Willowbridge Office Park, Bellville, Cape Town Office 74,1
Other below R50,0 million 0,8
TOTAL 401,3
GOZ AUD’ million
Development commitments for Energex and Fox Sports Office 61,7
TOTAL 61,7
V&A R’ million
Allan Gray (Growthpoint’s 50% share) Office 207,6
Other below R50,0 million 15,2
TOTAL 222,8
COMMITMENTS
39
SUSTAINABILITY AND CSI
Sustainability:
Founding Member of the GBCSA
Pursuing Green Star accreditation in new developments with two “Four Star Green Star”
ratings achieved
Reducing resource consumption – energy efficiency projects focusing on LED retrofit and HVAC
resulted in savings of 10,4 million kWh
Exploring alternate clean energy sources – partnered with Eskom on rooftop solar project at
Lincoln on the Lake in Umhlanga Ridge resulting in generation capacity of 87,000 kWh per
annum
Carbon Disclosure – now the leading real estate player in Africa with a score of 83%
40
SUSTAINABILITY AND CSI (CONT’D)
CSI Initiatives:
Property Point – small business development programme that develops SMME’s in the property
sector. R80 million in procurement opportunities facilitated and 420 jobs created
Bursary programme – offered to students wanting to pursue a career in property through SAPOA
and Growthpoint directly
Growsmart – an inter-schools competition reaching over 60 000 learners promoting literacy
amongst scholars of the Western Cape – received a national award from the SACSC and 3
international awards from the ICSC, including one for the best CSI campaign globally
Bricks and Mortar Projects – We support infrastructure development projects in under
resourced communities. Projects include the Zikhuliseni Skills Centre in Diepsloot, the Zolile
Malindi Community Centre in Mfuleni and the Rylands Primary school hall in Cape Town
Staff Involvement Projects – “Helping and Loving Others” aka HALO is a charitable project run
by a committee of Growthpoint staff members. These staff give of their personal time to
assist charities and people in need, usually those that are lesser known and supported
42
PROSPECTS: RSA
Business confidence in South Africa is currently at a 12 year low
GDP growth prospects continue to be revised lower (2.7%) based on a weaker global
economic outlook, particularly in the Eurozone
Property “fundamentals” to remain solid, however “like for like” net property income
growth will come under pressure:
Consolidated vacancies are at 4.0%; unlikely to reduce much further
Debtors arrears levels are close to record lows at 6.5% of total monthly collectables; unlikely to
reduce much further
Property expense ratio at <25.0%; unlikely to reduce much further
Access to liquidity (debt and equity) remains good, although access to conventional
bank debt funding and the cost thereof will become more challenging with the
implementation of Basel III
Office sector to remain the weakest with very little growth in overall demand when
measured net of savings in space due to efficiencies
Early signs of positive yield spread emerging following the recent 0.5% cut in interest
rates, the strong performance in the listed property sector and the Growthpoint share
price in particular
43
PROSPECTS: RSA (CONT’D)
Focus on executing the Development Plan, completing existing developments and
identifying new ones
REIT legislation is anticipated to be promulgated in the first quarter of 2013 and it is
Growthpoint’s intention to convert into a REIT
Assuming current economic conditions continue, the growth in distribution per linked
unit for the year to 30 June 2013 is expected to be in line with that achieved in the
current year (this forecast has not been audited by the company’s auditors)
44
PROSPECTS: GOZ
Access to debt funding remains challenging with the four major Australian banks still
hesitant to lend and being concerned about single borrower limits
The Australian Corporate Bond market and debt capital markets are relatively
undeveloped compared to South Africa and currently not a viable alternative to bank
funding
Yields on good quality investment property are significantly higher than the cost of debt
(positive yield spread)
The economic outlook for Australia is still positive with projected GDP growth of 3.25%,
inflation at below 3% and bond yields and interest rates near all time lows
Historic vacancy and arrear levels are not sustainable as the portfolio has been
diversified from a few, large, single tenanted industrial buildings to include a number
of large multi-tenanted office buildings
Forecast distribution growth of 4% in AUD from 17.6 cents per stapled security for
FY2012 to 18.3 cents per stapled security for FY2013 whilst managing the payout ratio
to take into account capex requirements, portfolio metrics, prevailing financial
conditions and access to finance
Estimated distributable profit for the year ending 30 June 2013 is between 19.4 cents
and 19.8 cents per stapled security, suggesting a payout ratio of between 92% and 94%
45
PROSPECTS: V&A WATERFRONT
Overall development masterplan is taking shape
The perception that the V&A is “too expensive” and that major corporates “can’t
afford” to be in the V&A is incorrect
V&A is “Open for Business” in respect of development, redevelopment and investment
however activity is constrained by weak demand for office space and weak residential
demand
Actively pursuing single occupancy office tenants and development opportunities
Whilst the Link Mall lease renewal process has been completed resulting in 3 vacancies
and “better than expected” outcome on reversions, demand for good retail space
remains very strong
Net distributable income from the V&A is expected to increase by circa 7
48
CONTENT
Annexure 1 – Growthpoint’s Property Portfolio
Annexure 2 – Split of RSA Property Portfolio (Excl V&A)
Annexure 3 – Acquisitions RSA (Excl V&A)
Annexure 4 – Disposals RSA (Excl V&A)
Annexure 5 – Non-Current Assets Held for Sale
Annexure 6 – Top 12 RSA Retail Properties by Value (Excl V&A)
Annexure 7 – Top 12 RSA Office Properties by Value (Excl V&A)
Annexure 8 – Top 12 RSA Industrial Properties by Value (Excl V&A)
Annexure 9 – Net Property Income Analysis RSA (Excl V&A)
Annexure 10 – GLA and Vacancy Reconciliation RSA (Excl V&A)
Annexure 11 – Lease Expiry by Sector RSA (% of GLA)
Annexure 12 – Lease Expiry by Sector RSA (% of Gross Monthly Rental)
Annexure 13 – Unitholders Holding > 1% at June 2012
49
CONTENT (CONT’D)
Annexure 14 – Linked Units Issued
Annexure 15 – Detailed Borrowings
Annexure 16 – Debt Expiry Profile RSA
Annexure 17 – Fixed Interest Rate Expiry Profile for RSA borrowings
Annexure 18 – Split of GOZ Property Portfolio
Annexure 19 - Acquisitions and Disposals – GOZ
Annexure 20 – Top 12 GOZ Properties by Value
Annexure 21 – Net Property Income Analysis GOZ
Annexure 22 - GLA and Vacancy reconciliation GOZ
Annexure 23 - Lease expiry by sector GOZ
Annexure 24 – Split of V&A Property Portfolio
Annexure 25 – GLA and Vacancy Reconciliation V&A
Annexure 26 – Lease expiry by sector V&A
50
ANNEXURE 1 - GROWTHPOINT’S PROPERTY PORTFOLIO
Retail
Office
Industrial
RSA
Total
GOZ*
V&A*
Number of properties 47 130 226 403 41 1
GLA (m²) 975 373 1 156 944 2 219 781 4 352 098 900 676 192 086
Vacancy (m²) 30 215 66 736 75 810 172 761 2 291 3 088
Vacancy (%) 3.1% 5.8% 3.4% 4.0% 0.3% 1.6%
Valuation (R’m) 13 145 14 592 7 251 34 988 13 118 4 950
Value per m² (excl bulk) 13 462 12 363 3 222 7 947 14 565 22 880
Average gross rental (per m²/month) R122 R115 R36 R76 AUD 142** R152
Forward yield 8.7% 9.3% 11.0% 9.4% 8.5% 7.2%
Average in force escalations 7.7% 8.8% 8.7% 8.4% 3.2% 8.5%
Weighted average lease period (years):
- By gross rental 3.2 4.4 3.0 3.7 7.2 5.0***
- Excluding Investec - 3.3 - 3.2 - -
Renewal success rate 81.1% 74.6% 74.0% 75.2% 100.0% 83.7%
Weighted average renewal growth 6.7% (1.5%) 4.0% 2.7% 6.1% 2.7%
Weighted average future escalations on
renewals
8.1% 8.6% 8.6% 8.1% 3.6% 7.6%
Note:
* V&A is included reflecting Growthpoint’s 50% interest, GOZ is reflected at 100%
** Based on net rental per annum
*** Various leases in the V&A were excluded in the average lease period calculation. When these leases are included the average lease period
increases to 10.9 years
51 ANNEXURE 2 - SPLIT OF RSA PROPERTY PORTFOLIO
(EXCL V&A)
Value
GLA
Value
GLA
Retail
Office
Industrial
55%
18%
8%
13%
3% 1% 2%
22%
27%
51%
37%
42%
21%
Eastern Cape
Other
Greater JHB
Western Cape
Pretoria
KwaZulu-Natal
North West
50%
20%
11%
10%
4% 3%
2%
52
ANNEXURE 3 - ACQUISITIONS RSA (EXCL V&A)
Purchase
Price
R’ million Sector
Alberton City * 423,8 Retail
Ernst & Young ** 71,6 Office
144 Oxford Road, Rosebank 43,3 Office
Merck Longmeadow ** 10,7 Office
Other below R10,0 million 25,1 -
574,5
* Additional 64.3% acquired, Growthpoint now owns 100%
** Payment for rights to cancel bare dominium structures
53
ANNEXURE 4 - DISPOSALS RSA (EXCL V&A)
Selling
price
R’ million Sector
Profit/
(loss) on
cost
Profit/
(loss) on
book value Yield
Brooklyn/Design Square (7% sold),
Pretoria
120,3 Retail 54,9 - -
Ruimsig Shopping Centre, Roodepoort 73,0 Retail 6,2 (0,1) 8.9%
Bronkhorstspruit Mall, Bronkhorstpruit 44,1 Retail 27,7 - 9.9%
Otjiwarongo, Namibia 28,4 Retail 14,2 0,2 11.4%
The Gallery, Milnerton 22,5 Retail (21,8) (0,2) 11.0%
Meersig, Centurion 73,0 Office 37,1 (0,1) 9.1%
Hatfield Festival * 23,2 Office - - -
ABSA Bruma, Bruma Lake 23,0 Office 6,2 (1,9) 9.4%
The Ridge, Parktown 33,6 Office 15,2 - 10.4%
Other Office below R20,0 million
(3 properties)
38,1 Office 10,4 1,2 -
Chamberlain, Durban 33,3 Industrial 8,3 0,1 13.3%
Metro Cash & Carry, East London 20,0 Industrial (2,1) (0,6) 7.6%
Other Industrial below R20,0 million
(11 properties)
111,1 Industrial 27,3 2,1 -
643,6 183,6 0,7
* Vacant land
54
ANNEXURE 5 – NON-CURRENT ASSETS HELD FOR SALE
Properties held for sale
Sector
Fair value
Jun 2012
R’ million
Northcliff Square Shopping Centre, Northcliff Retail 40,0
ABSA Midrand, Midrand Office 118,0
Metropark, CBD Pretoria Office 78,0
174 Visagie Street, CBD Pretoria Office 47,6
115 Paul Kruger Street, CBD Pretoria Office 36,2
ABSA Cash Centre, Westway, Westville Office 28,8
La Rocca, Bryanston Office 27,8
Itas House, Meyersdal Office 15,4
Emerson Network Power Building, Sunninghill Office 13,7
Galileo House, Bruma Office 13,6
Oakhill Building, Fourways Office 13,1
ABSA Goodwood, Goodwood Office 11,2
Montclare Residential Units, Cape Town Residential 1,3
Amalgam South, Crown Mines Industrial 43,6
Fitzmaurice, Epping * Industrial 27,0
Total 515,3
* Subdivided portion
55 ANNEXURE 6 - TOP 12 RSA RETAIL PROPERTIES BY
VALUE (EXCL V&A)
Building Fair value R’ million
GLA m²
1 Brooklyn/Design Square (75%), Brooklyn, Pretoria 1 538 54 181*
2 Waterfall Mall, Rustenburg 1 044 49 268
3 Lakeside Mall, Benoni 980 67 578
4 La Lucia Mall, La Lucia, Durban 874 36 343
5 Kolonnade (50%), Montana Park, Pretoria 714 36 355*
6 Alberton City, Alberton 671 49 295
7 Walmer Park Shopping Centre, Walmer Park, Port Elizabeth 664 38 317
8 The Constantia Village, Constantia, Cape Town 649 20 395
9 Northgate (50%), Randburg 639 45 286*
10 Woodmead Retail Park, Woodmead, Johannesburg 620 54 891
11 River Square Shopping Centre, Three Rivers, Vereeniging 515 38 904
12 Golden Acre, CBD Cape Town 442 33 686
Subtotal 9 350 524 499
35 Balance of the sector 3 795 450 874
47 Total for the RSA sector 13 145 975 373
* GLA reflected is the % undivided share held by Growthpoint
Value
GLA
Top 12 Properties
Balance of Retail Properties
Top 12 Properties
Balance of Retail Properties
71.1%
28.9%
53.8%
46.2%
56 ANNEXURE 7 - TOP 12 RSA OFFICE PROPERTIES BY
VALUE (EXCL V&A)
Building Fair value R’ million
GLA m²
1 Investec, Sandton 1 893 70 945
2 The Place, Sandton 826 33 979
3 Constantia Office Park, Roodepoort 779 71 955
4 Montclare Place, Claremont, Cape Town 483 29 446
5 Growthpoint Business Park, Midrand 429 62 966
6 36 Hans Strijdom Avenue, Cape Town 339 12 836
7 Central Park, Midrand 317 34 060
8 Hatfield Gardens, Hatfield, Pretoria 314 25 556
9 N1 City Hospital, Goodwood, Cape Town 310 14 022
10 Sunnyside Ridge Office Park, Parktown, Johannesburg 268 29 571
11 The District, Woodstock, Cape Town 234 18 413
12 Fredman Towers, Sandton 228 15 005
Subtotal 6 420 418 754
118 Balance of the sector 8 172 738 190
130 Total for the RSA sector 14 592 1 156 944
Value
GLA
44.0%
56.0%
36.2%
63.8%
Top 12 Properties
Balance of Office Properties
Top 12 Properties
Balance of Office Properties
57 ANNEXURE 8 - TOP 12 RSA INDUSTRIAL PROPERTIES
BY VALUE (EXCL V&A)
Building Fair value R’ million
GLA m²
1 Growthpoint Industrial Estate, Meadowdale, Germiston 353 59 166
2 Hilltop Industrial Estate, Elandsfontein 173 69 571
3 Adcock Ingram, Midrand 172 21 536
4 Central Park, Elsiesriver, Cape Town 122 49 135
5 Grenville, Epping, Cape Town 120 16 220
6 Omni Park, Aeroton, Johannesburg 113 40 527
7 Pine Industrial Park, New Germany 110 39 150
8 226 Brakpan Road, Boksburg 100 40 300
9 Kulingile Building, Isando, Kempton Park 96 49 000
10 Midas Meadowdale, Germiston 93 18 981
11 Greenbushes, Port Elizabeth 92 13 539
12 Maitland Industrial Park, Maitland, Cape Town 87 27 961
Subtotal 1 631 445 086
214 Balance of the sector 5 620 1 774 696
226 Total for the RSA sector 7 251 2 219 782
Value
GLA
22.5%
77.5%
20.1%
79.9%
Top 12 Properties
Balance of Industrial Properties
Top 12 Properties
Balance of Industrial Properties
58 ANNEXURE 9 – NET PROPERTY INCOME ANALYSIS RSA
(EXCL V&A)
Jun 2012
R’ million
Jun 2011
R’ million
Increase
Net property income 3 099 2 855 8.5%
Adjustments:
Acquisitions & Developments (234) (78)
Disposals (22) (145)
Investec rent (227) (205)
Adjusted “like for like” net property
income 2 616 2 427 7.8%
Retail 919 857 7.2%
Office 1 028 948 8.4%
Industrial 669 622 7.6%
Total 2 616 2 427 7.8%
59 ANNEXURE 10 – GLA AND VACANCY RECONCILIATION
RSA (EXCL V&A)
Total GLA
(m²)
Vacant
area
(m²)
Vacancy
Balance at 1 Jul 2011 4 390 073 220 003 5.0%
GLA adjustments (6 380) 4 107
Disposals (126 258) (22 133)
Acquisitions 32 175 864
Developments and extensions 62 488 -
Leases expired in the period * 901 815
Renewals of expired leases ** (678 195)
New letting of vacant space (362 949)
Leases terminated 109 249
Balance at 30 Jun 2012 4 352 098 172 761 4.0%
* 20.5% of opening balance GLA expired during the year under review
** Retention % of 75.2% compared to 65.8% for the year to Jun 2011
60 ANNEXURE 11 – LEASE EXPIRY BY SECTOR RSA (% OF GLA)
RETAIL OFFICE INDUSTRIAL
%
19.2
7.5
11.8
17.7
21.7
16.1
2.9
3.1
17.1
10.1
9.9
17.6
19.6
16.1
3.8
5.8
8.6
12
12.9
15.7
24.6
21.2
1.6
3.4
TOTAL 13.2
TOTAL 10.5
TOTAL 11.8
TOTAL 16.7
TOTAL 22.6
TOTAL 18.7
TOTAL 2.5
TOTAL 4.0
2017-beyond
By June-17
By June-16
By June-15
By June-14
By June-13
Monthly
Vacant
61 ANNEXURE 12 – LEASE EXPIRY BY SECTOR RSA
(% OF GROSS MONTHLY RENTAL)
%
RETAIL OFFICE INDUSTRIAL
12.9
7.2
12.1
18.6
23.4
19.5
3.3
3.0
26.5
8.3
9.2
14.6
17.6
15.4
3.8
4.6
9.9
8.9
11.3
16.9
24.7
23.1
1.9
3.3
TOTAL 17.5
TOTAL 8.0
TOTAL 10.8
TOTAL 16.6
TOTAL 21.4
TOTAL 18.8
TOTAL 3.2
TOTAL 3.7
2017-beyond
By June-17
By June-16
By June-15
By June-14
By June-13
Monthly
Vacant
62 ANNEXURE 13 – UNITHOLDERS HOLDING >1% AT JUNE 2012
Name
Units held
Holding
Public Investment Corporation 418 064 821 24.0%
BEE Consortia 122 000 000 7.0%
Stanlib 104 471 356 6.0%
Old Mutual Group 77 717 711 4.5%
Investec 64 324 683 3.7%
Eskom Pension & Provident Fund 52 172 282 3.0%
Investment Solutions 46 249 747 2.7%
Vanguard 43 857 190 2.5%
Prudential 30 942 900 1.8%
Momentum 30 646 140 1.8%
Sanlam Group 29 523 361 1.7%
Liberty Group 27 851 232 1.6%
Transnet Retirement Funds 25 432 109 1.5%
Coronation Fund Managers 18 177 440 1.0%
Total unitholders holding >1% 1 091 430 972 62.8%
Other 651 649 946 37.2%
Total 1 743 080 918 100.0%
Foreign unitholding 15.3%
63
ANNEXURE 14 – LINKED UNITS ISSUED
Linked units
Opening balance 1 Jul 2011 1 591 971 441
Equity raising (Jul 2011) 100 000 000
Distribution reinvestment (Sep 2011) 9 395 001
Distribution reinvestment (Mar 2012) 41 714 476
Closing balance 30 Jun 2012 1 743 080 918
64
ANNEXURE 15 – DETAILED BORROWINGS
RSA
Refinance
Date
Jun 2012
R’ million
Jun 2011
R’ million
Commercial paper – 3 months (R400m x 2) Jul/Aug 2012 800
ABSA Nov 2012 695
Nedbank Sep 2013 2 000
Standard Bank/Sanlam Dec 2013 1 000
Standard Bank Feb 2014 800
China Construction Bank Aug 2014 250
Corporate Bond – GRT 01 Dec 2014 500
Corporate Bond – GRT 05 Jan 2015 750
ABSA – Paramount Feb 2015 740
RMB Jun 2015 500
Corporate Bond – GRT 03 Oct 2015 500
Corporate Bond – GRT 02 May 2016 500
Corporate Bond – GRT 04 Sep 2016 260
RMB Jun 2017 1 000
RMB Feb 2018 675
RMB – Paramount Apr 2018 740
OMSFIN May 2021 1 200
Investec Buildings loan Feb 2024 703
Total 13 613 14 249
Weighted average interest rate 9.5%
% of debt at fixed interest rate 83.1%
GOZ *
Westpac, NAB, ANZ (weighted average interest rate of 7.3%) 6 118
Total 6 118 4 844 * Includes a cumulative foreign exchange difference of R1,1 billion (30 Jun 2011: R379,0 million)
65
ANNEXURE 16 – DEBT EXPIRY PROFILE RSA
Debt expiry at 30 June 2012 per 12 month period
11%
28%
20%
7%
9%
11%
0% 0%
9%
0% 0%
5%
0%
5%
10%
15%
20%
25%
30%
2012-1
3
2013-1
4
2014-1
5
2015-1
6
2016-1
7
2017-1
8
2018-1
9
2019-2
0
2020-2
1
2021-2
2
2022-2
3
2023-2
4
%
Fixed interest rate expiry at 30 June 2012 per 12 month period
66 ANNEXURE 17 – FIXED INTEREST RATE EXPIRY PROFILE
FOR RSA BORROWINGS
R’m
2,299
1,000
318
905 952
2,212
1,915
650
500
2,159
- -
703
-
500
1,000
1,500
2,000
2,500
Flo
ati
ng
2012-1
3
2013-1
4
2014-1
5
2015-1
6
2016-1
7
2017-1
8
2018-1
9
2019-2
0
2020-2
1
2021-2
2
2022-2
3
2023-2
4
67
ANNEXURE 18 - SPLIT OF GOZ PROPERTY PORTFOLIO
GLA Net property
income
Industrial
Office
Value Value
84%
16%
40%
30%
9%
8%
7%
4% 2%
Western Australia
Tasmania
Queensland
Victoria
South Australia
New South Wales
ACT
53% 47%
Industrial
Office
35%
65%
68
ANNEXURE 19 - ACQUISITIONS AND DISPOSALS - GOZ
Acquisitions Sector R’ million
AUD’
million Yield
333 Ann Street, Brisbane, QLD Office 960,7 116,1 9.1%
CB 1, South Brisbane, QLD Office 560,9 67,8 8.9%
CB 2, South Brisbane, QLD Office 284,5 34,4 7.8%
219 – 247 Pacific Highway, NSW* Office 3,3 0,4 8.1%
10 - 12 Mort Street, Canberra, ACT Office 466,2 55,8 9.6%
Botanicca Carpark, Richmond, VIC** Carpark 7,8 1,0 -
2 283,4 275,5 -
Note:
* Only land value of development project acquired
** Consolidated into a current property
Disposals Sector R’ million
AUD’
million Yield
1304 Ferntree Gully Road, Scoresby, VIC Industrial 42,8 5,2 7.2%
42,8 5,2
33 A
nne S
treet,
Bri
sbane,
QLD
CB1 &
CB2,
SW
1 S
outh
Bri
sbane
219-2
47 P
acif
ic H
ighw
ay A
rtarm
on
10-1
2 M
ort
Str
eet,
Canberr
a
69
Building Sector Fair value R’ million
GLA m²
1 70 Distribution Street, Larapinta, QLD Industrial 1 328 75 425
2 333 Ann Street, Brisbane, QLD Office 972 16 476
3 2 Horrie Miller Drive, Perth Airport, WA Industrial 927 80 374
4 572-576 Swan Street, Richmond, VIC Office 626 14 660
5 134 Lillkar Road, Goulburn, NSW Industrial 593 42 826
6 28 Bilston Drive, Wodonga, VIC Industrial 589 57 440
7 CB1, 100 Melbourne Street, South Brisbane, QLD Office 568 11 561
8 52 Merivale Street, South Brisbane, QLD Office 543 9 453
9 120 Northcorp Boulevard, Broadmeadows, VIC Industrial 535 58 320
10 32 Cordelia Street, South Brisbane, QLD Office 535 10 125
11 599 Main North Road, Gepps Cross, SA Industrial 476 67 238
12 42 10-12 Mort Street, Canberra, ACT Office 466 15 398
Subtotal 8 158 459 296
29 Balance of the sector 4 960 441 380
41 Total for the GOZ sector 13 118 900 676
Value
GLA
ANNEXURE 20 – TOP 12 GOZ PROPERTIES BY VALUE
62.2%
37.8%
49.0%
51.0%
Top 12 Properties
Balance of GOZ Properties
Top 12 Properties
Balance of GOZ Properties
70
Jun 2012
AUD’000
Jun 2011
AUD’000 Increase
Net property income 108 942 79 202 37.5%
Adjustments:
Unallocated once off adjustments - (399)
Acquisitions (43 838) (13 127)
Disposals (294) (2 561)
Adjusted “like for like” net property income 64 810 63 115 2.7%
Office - - -
Industrial 64 810 63 115 2.7%
Total 64 810 63 115 2.7%
ANNEXURE 21 – NET PROPERTY INCOME ANALYSIS GOZ
70 Distribution Street, Larapinta, QLD
71
Total
GLA
(m²)
Vacant
(m²) Vacancy
Balance at 1 July 2011 843 964 29 0.0%
GLA adjustments 164 -
Disposals (7 621) -
Acquisitions, developments and extensions 64 169 1 395
Leases expired in the period - -
Renewals of expired leases - -
New letting of vacant space - -
Leases terminated - 867
Balance at 30 June 2012 900 676 2 291 0.3%
ANNEXURE 22 – GLA AND VACANCY RECONCILIATION GOZ
572-576 Swan St, Richmond, VIC 33-39 Richmond Road, Keswick, SA
72
ANNEXURE 23 – LEASE EXPIRY BY SECTOR GOZ
% of GLA % of gross monthly rental
Office
Industrial
2
12 8 9
13
56
1 5
0
5 8
81
0
10
20
30
40
50
60
70
80
90
100
2
11 12 10
12
53
4 1
4 5
86
0
10
20
30
40
50
60
70
80
90
100
73
ANNEXURE 24 - SPLIT OF V&A PROPERTY PORTFOLIO
Property portfolio
by value
Property portfolio
by GLA
87%
13%
54%
20%
14%
12%
Developed vs
undeveloped by value Net property
income
55%
16%
7%
9%
13% 23%
23% 32%
22%
Developed
Undeveloped
Bulk
Retail
Office
Fishing & Industrial
Hotel
Bulk
Retail
Office
Fishing & Industrial
Hotel
74 ANNEXURE 25 – GLA AND VACANCY RECONCILIATION V&A
50% of GLA
(m²)
Vacant
(m²) Vacancy
Balance at 1 Jul 2011 191 918 6 732 3.5%
GLA adjustments - (1 130)
Disposals - -
Developments and extensions 168 -
Leases expired in the period * - 11 673
Renewals of expired leases ** - (9 770)
New letting of vacant space - (5 042)
Leases terminated - 625
Balance at 30 Jun 2012 192 086 2 924 1.6%
* 3.7% of opening balance GLA expired during the year under review
** Retention of 83.7% for the year to Jun 2012
75
ANNEXURE 26 – LEASE EXPIRY BY SECTOR V&A
% of GLA % of gross monthly rental
Office
Retail
Fishing & Industrial
Hotel
2
21
4 7
12 13
41
5
16
12
16
8
19
24
14
5
10
71
14
1
85
0
10
20
30
40
50
60
70
80
90
100
11
2 3 2
7
75
20
15 16 13
17 19
34
18
1
17
30
1
99
0
10
20
30
40
50
60
70
80
90
100