for the year ended 31 March 2012

AgendaAgenda

• Highlights Laurence Rapp

• Strategic review Laurence Rapp

• Financial performance Mike Potts

• Portfolio performance and overview Ina Lopion

• Prospects and plans Laurence Rapp

• Acknowledgements Laurence Rapp

• Questions Team

2

Highlights, Vision, Values and Strategic review

LAURENCE RAPPHighlights, Vision, Values and Strategic review

3

HighlightsHighlights

A l di t ib ti i d b 6 1%• Annual distribution increased by 6.1%.

• Successful acquisition of R1.5 billion property portfolio post year end, increasing our asset base by approximately 25%increasing our asset base by approximately 25%.

• Improved quality of offices portfolio.

F fl t i d i hti i d f 50% t 100%• Free-float index weighting increased from 50% to 100%.

• Successful implementation of a Domestic Medium Term Note Programme post year end thereby reducing cost of finance onProgramme post year end, thereby reducing cost of finance on R1.02 billion debt by 1%.

• Successful broadening of Vukile’s unitholder base.

• Vukile repositioned in the market.

4

Vision and ValuesVision and Values

“Through our dedicated team and network of trusted partners, Vukile aspires to be a leading property company by providing a top quality experience for our tenants and their customers

through the active management and growth of our diversified portfolio and in so doingthrough the active management and growth of our diversified portfolio and in so doing generate superior returns for our stakeholders”

• We act with integrity

• We make a difference as a team

• We deliver results to unitholders

• We treasure our partnership

• We are client focused

• We are passionate about success

• We are responsible corporate citizens

• We are proactivep We are proactive

5

Strategic reviewStrategic review

Eight critical success factors (“CSFs”) have been identified that will enable the company toEight critical success factors ( CSFs ) have been identified that will enable the company to bring our vision to fruition:

• Grow the portfolio

• Broaden our shareholding base and enhance market perception on an independent Vukile

• Building sustainable partnerships

• Improved customer and tenant focus

• Optimise long and short-term returns for unitholders

• Minimise funding cost and refinance risk

• Invest in our people by engaging our people, building competence and capacity

• Transformation

6

Financial performance

MIKE POTTSFinancial performance

7

Distribution historyDistribution history

11

124.8120.0

140.0

88.3

97.9

107.9

17.6

80.0

100.0

4

50

54.34

53.8

60.9

67.1

70.5

61.5

68.5

76.8

60.0

30.0

32.5

35.8

40.3

44.1

47.0

0.5

3

31.5

36.0

41.0

48.0

8

20.0

40.0

0.02005 2006 2007 2008 2009 2010 2011 2012

Interim Final Total

8

Growth in distributionGrowth in distribution18.0

14.3 13

17.1

15.014.0

16.0

10

12.6

9

.9

12.1

13.2

10.2

11.4

12.0

10.9 10.210.0

12.0

8.3

.0 9.6

6.6

7.5

7.5

22

9.0

6.1

6.0

8.0

5.1

2.0

4.0

0.02006 2007 2008 2009 2010 2011 2012

Interim Final Total

9

Simplified income statementSimplified income statement

March 2012Rm

March 2011Rm

%Variance

Group net rental income 598.9 542.5 10.4

Income from asset management business 53.3 65.1 (18.1)

Asset management expenditure (30.8) (20.2) (52.5)

Net finance costs (152.1) (147.4) (3.2)

Corporate administration costs (25.9) (25.5) (1.6)

Taxation (4.3) (6.4) 32.8

Available for distribution 439.1 408.1 7.6

Increase in headline earnings per linked unit 10.7%

10

Make up of increase in distributionMake-up of increase in distribution2012

Cents per2011

Cents perCents per linked unit

Cents per linked unit

Contributions to increased rental income

Increase in rentals on new and renewed leases 12.6 10.3

Additional rentals from property acquisition 9.3 12.8

Additional municipal service recoveries and other 5.6 3.7

27.5 26.8

Increase in property expenditure (11.5) (7.6)

Net increase in net group property revenue 16.0 19.2

(Reduced)/additional income from asset management business (6.1) 11.9

Less: adjusted prior year asset management income for full year (8 5)Less: adjusted prior year asset management income for full year - (8.5)

Increased net finance costs (1.3) (6.6)

Reduced/(increased) administrative expenses, taxation and retained income 0.8 (0.7)

Adjustment for changes in linked units issued in the prior year (2.2) (2.3)Adjustment for changes in linked units issued in the prior year (2.2) (2.3)

Less: R10 million distribution foregone by Sanlam Properties in prior year - (3.3)

Net increase in distribution 7.2 9.7

11

Group balance sheetGroup balance sheet

RmillionRmillion

6000

7000

5806

5084

5000

3315

3910

3000

4000

20122011

3 2

1668401000

2000

321

267

281

09 864

0For sale Investment

propertiesCurrent assets Non-current

liabilitiesCurrent liabilities

12

Group debt structureGroup debt structureMaturity and interest rate profile of interest bearing debt at 31 March 2012

13

Group net cash flowGroup net cash flow

638 685800,000

337 809

638 685

215 947 200,000

400,000

600,000

,

(1 231)

36 476

(202 675)

(14 808)(152 076)

-400 000

-200,000

-

200,000

Rmillion

(426 233)-600,000

-400,000

Balance

Cash fr

Borrow

Pro

investm

Distribu

Acquisiinvest

Acquisi

sale

Net fina

Balancee March 2011

rom operating

wings repaid

ceeds on salm

ent propertieassets

ution

ition/improvem

ment propert

fixed assets

ition of availae financial ass

ance costs

e March 20121 g activities

e of es/fixed

ments to

ties and s able-for-sets

2

14

NAV bridgeNAV bridge

10031109

100011001200

1003

500600700800900

1000

-1

108

-1

125

1000

100200300400500

Contribution to NAV

NAV1 1

-125-100

Opening N

Am

ortisati

Fair value

including

Interest ra

Net reven

Distributi o

Closing N

ANA

V B

alance 1

ion of debentu

surplus net oftax

share based pand other

ate swap revalu

ue before distr

on AV

(31 March 1 A

pril 2011

re premium

f deferred

payments

uation

ribution

2012)

15

Linked unit priceLinked unit price

Cents15

1400

1600

1800Cents

10

1195

1423

527

1000

1200

1400

987

077

1006 919600

800

526

0

200

400

0Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12

16

Trading volumes and liquidityTrading volumes and liquidity

Value traded as % of market capital (%)VKE: closing price vs. monthly volume p ( )

50,000,000

60,000,000

15 2015.4015.60

g p ytraded

VolumePrice

20,000,000

30,000,000

40,000,000

14.2014.4014.6014.8015.0015.20

0

10,000,000

13.6013.8014.00

Volume Traded  Closing Priceg

17

Post year end transactionsPost year end transactions

A i i i f R1 5 billi f li f ll l d d• Acquisition of R1.5 billion portfolio successfully concluded on 25 April 2012.

P rchase price f nded as follo s• Purchase price funded as follows:

– 59.5 million linked units issued at R14.60 – R868.7 million;

– Bank debt raised of R612 million;

– R490 million hedged;

– R122 million variable;

– All-in cost of finance in line with circular forecast of 8.53%.

18

Post year end transactionsPost year end transactions

R fi i f R1 02 billi CMBS P• Refinancing of R1.02 billion CMBS Programme.

• Global Credit Rating Co. accorded Vukile a AA (RSA) rating to senior sec red notessenior secured notes.

• Secured bonds of R1.02 billion issued on 8 May 2012 as follows:

– R580 million due 8 May 2015 - margin of 1.30%;

– R200 million due 8 May 2016 - margin of 1.54%;

– R240 million due 8 May 2017 - margin of 1.55%;

– All based on 3 month JIBAR.

• 100% of this debt hedged at below 9%.

19

Property portfolio performance and overview

INA LOPIONProperty portfolio performance and overview

20

OverviewOverview

N b f i 72• Number of properties 72

• GLA 922 221m²

• Valuation

– Total portfolio R6.113 billion p

46% of portfolio valued externally, values in line with internal values

– Average value per property R85 million

– Average discount rate 12.7%

A it it li ti t 10 7%– Average exit capitalisation rate 10.7%

21

10 largest properties10 largest properties

A ² V l (R ) % f t t lArea m² Value (Rm) % of totalDurban Phoenix Plaza 24 342 495.4 8.1 Bellville Louis Leipoldt Hospital 22 311 287.8 4.7 p pDobsonville Shopping Centre 23 177 229.4 3.8 Pine Crest (50%) 20 072 204.1 3.3 D rban Embass 32 346 202 8 3 3Durban Embassy 32 346 202.8 3.3 Oshakati Shopping Centre 22 269 190.6 3.1 Daveyton Shopping Centre 17 095 182.5 3.0 Arivia.kom Building 15 634 169.3 2.8 Roodepoort Hillfox Power Centre 37 440 168.2 2.8 Randburg Square 50 945 150 1 2 5Randburg Square 50 945 150.1 2.5

265 631 2 280.3 37.3

22

Sectoral profileSectoral profileMarket Value (Rm)

Offices

GLA (m²)

R il

Offices29%Retail48%

Offices24%

Retail54%

Industrial17%

Industrial28%

10 000Market Value (R/m²)

6,568 7,005

3 343

5,764

7,457 7,911

3,952

6,591

4 000

6,000

8,000

10,000

R/m

²

3,343

0

2,000

4,000

Retail Offices Industrial Average

R

March/11 March/12

23

Portfolio compositionPortfolio composition

G h f li• Grow the portfolio.

• Overweight retail

– Middle LSM (3 to 6) Centres.

– Rural and Urban.

• Improve quality of offices and industrial assets

– Disposals of CBD properties.

– Acquisition of Sanlam portfolio.q p

• Yield versus quality debate.

24

DisposalsDisposals

GLA % Yield Sales price StatusProperty Sector

GLA(m²)

% Yieldper annum

Sales price (R000)

Status transferred

Benoni Kleinfontein Offices: Erf 4 Offices 439 17 3 1 700 June 2011Benoni Kleinfontein Offices: Erf 4 Offices 439 17.3 1 700 June 2011

AAD (Goodwood) Industrial 3 024 10.1 15 250 Jan 2012

Botbyl Subaru Building Hatfield Retail 4 603 19.4 13 750 Nov 2011

Oshakati Beares Furniture Retail 2 566 10.8 5 800 Sept 2011

Johannesburg John Griffen Industrial 9 774 12.0 16 500 May 2012

Total 53 000Total 53 000

25

Properties held for saleProperties held for sale% Yield Sales

Property SectorGLA(m²)

per annum

price (R000) Status

Johannesburg Glencairn Building Offices 13 3787 8

23 520 CPs fulfilled7.8

Johannesburg Truworths BuildingRetail/Offices 6 919 43 680 CPs fulfilled

Pretoria VWL Building Offices 16 933 12.5 103 000 CPs outstanding

Nelspruit Prorom Building Offices 6 178 12.5 38 000 CPs outstanding

Katima Mulilo Pep Stores Retail 2 472 11.7 18 000 CPs outstanding

Rundu Elleries Retail 1 283 14.7 2 800 CPs outstanding

Pretoria Midtown Building Offices 8 086 tbc No sale yet

Lichtenburg Shopping Centre Retail 8 423 tbc No sale yetCP = Conditions precedent

26

Geographic profile (GLA m²)Geographic profile (GLA m²)

Free State4%

Limpopo4%

Mpumalanga3%

Northwest2% Northern Cape

1%

Eastern Cape1%

Western Cape6%

4% 1%

Gauteng55%

Namibia7%

KwaZulu Natal17%17%

Top four regions account for 85% of exposure

27

Tenant profile (GLA m²)Tenant profile (GLA m²)

49%

35%

Large national and listed tenants and major franchises

49%National and listed tenants, franchised and medium to large professional firms

7%

Government

9% Other

28

Weighted average base rentals R/m² (excluding recoveries)(excluding recoveries)

9.0%4.3%90

71.36 71.86 61.11

77.79 74.96

65.73

7.5%

60

70

80

34.58 36.77

6.3%

30

40

50

-

10

20

R t il Offi I d t i l T t lRetail Offices Industrial Total

March/11 March/12

29

Weighted average base rental R/m² -(excluding recoveries): Retail(excluding recoveries): Retail

CQualbert Centre - Durban

Durban Phoenix Plaza

OshikangoDaveyton Shopping Centre

Barlows Audi - KenilworthPine Crest (50%)

Windhoek 269 Independence AvenueGrosvenor Shopping CentreTruworths Centre Nelspruit

Oshakati Shopping CenterOndangwa Shoprite Checkers

Mala PlazaKatatura Shoprite Checkers Center

The Victoria Centre - PietermaritsburgDobsonville Shopping Centre

Oshikango

Katima Mulilo Pep StoresPiet Retief Shopping CentreRustenburg Edgars Building

Truworths Building JhbMoratiwa Crossing (94.50%)

Giyani PlazaOshakati Shopping Center

Randburg SquareNelspruit Sanlam Centre

Kimberley Kim ParkBloemfontein Plaza & Parkade

Masingita Spar CentreKokstad Game Centre

p

R0/m² R20/m² R40/m² R60/m² R80/m² R100/m² R120/m² R140/m² R160/m² R180/m² R200/m²

Rundu EllerinesGermiston Meadowdale Mall

Lichtenburg Shopping CentreRoodepoort Hillfox Power Centre

Weighted average R77,79/m²

30

Weighted average base rental R/m² -(excluding recoveries): Offices(excluding recoveries): Offices

Jhb Houghton 2446Hyde Park 50 Sixth Road

Pretoria Sanwood ParkDe Tijger Office Park

WaymarkDLV Building

Barlow Place RivoniaJhb Houghton 2446

Oos London Sanlam Centre259 West Street Centurion

Arivia.kom BuildingJhb Parktown Oakhurst

Sandton Sunninghill Placee o a Sa ood a

G ff SJhb Eva Park

Pinepark PinelandsBelville Louis Leipoldt

Pretoria Hatfield Sanlam BuildingSandton St Andrews Complex

Randburg TriangleBedfordview GISMidtown BuildingNelspruit ProromDurban Embassy

Glencairn Building Eloff Street

R0/m² R20/m² R40/m² R60/m² R80/m² R100/m² R120/m² R140/m² R160/m²

Mutual and Federal PtaVWL Building

Randburg Triangle

Weighted average R74,96/m²

31

Weighted average base rental R/m² -(excluding recoveries): Industrial(excluding recoveries): Industrial

Supra Hino

Mid d S it Cit

Centurion N1

Hellman International

Sony Building (Midrand)

Richmond Park

Midrand Allandale Park

Randburg Tungsten

Midrand Sanitary City

Vill M i I d t i l P k

Pinetown Westmead Kyalami Park

Randburg Trevallyn

Germiston R24

Valley View Industrial Park

Roodepoort Robertville Mini Factories

Parow Industrial Park

Village Main Industrial Park

R0/m² R10/m² R20/m² R30/m² R40/m² R50/m² R60/m² R70/m²

John Griffin (2 6th Street Wynberg) Weighted average R36,77/m²

32

Lease renewals % escalation on expiry rentalsLease renewals - % escalation on expiry rentals

6 6%7.0% 6.6%

6.0%

4.6%

3.5%

4.4%

4.0%

5.0%

2 0%

3.0%

1.0%

2.0%

0.0%Retail Office Industrial Average

33

New leases concludedNew leases concluded(Ratio of rental concluded against budget)

103%

101%102%

104%

101%100%

98%

100%

95%

94%

96%

98%

92%

94%

90%Retail Office Industrial Average

34

Contracted rental escalation profileContracted rental escalation profile9.3%9.5%

9.0%

8.5%

8.1% 8.0%8.2%

8.0%

7.5%

7.0%Retail Offices Industrial Total

35

Group lease expiryGroup lease expiry

100%

% of GLA

60%

80%

20%

40%

Vacant March 2013

March 2014

March 2015

March 2016

March 2017

Beyond March 2017

0%

2017GLA 6% 37% 21% 14% 7% 7% 8%Cumulative 6% 43% 64% 78% 85% 92% 100%

36

Lease expiry (cont )Lease expiry (cont.)

• Included in the 37% expiries for 2013 are a number of leases that expired during 2012 that are in the process of being renewedbeing renewed.

• Once these leases are concluded, the expiries for 2013 d t 33% hi h i i li ith lreduces to 33%, which is in line with our average lease

term of 3 years.

• The following tenants, with an area > 2 000m², will renew:

37

Lease expiry (cont )Lease expiry (cont.)

Property Tenant GLA (m²)p y ( )

Randburg Square OK Bazaars 8 062

Durban Embassy Road Accident Fund 7 605

Randburg Square Woolworths 4 472*

Bloemfontein Plaza & Parkade Dept of Public Works 3 843Bloemfontein Plaza & Parkade Ackermans 2 736Masingita Spar Centre Spar 2 612Bloemfontein Plaza & Parkade Fashion World 2 596Germiston Meadowdale Mall Cashbuild 2 458

Roodepoort Robertville Mini Factories Be-Tabs Pharmaceuticals 2 104

36 488*Will reduce area to ±2 600m²

38

New leases and renewalsNew leases and renewals • For the year ended 31 March 2012 leases were concluded with a:y

– Total contract value R579.5 million

– Total rentable area 202 129 m²Total rentable area 202 129 m

• Largest contracts concludedContract

lLease

d tiTenant Property Sector

value(Rm)

duration (years)

Shoprite Checkers (Pty) Ltd Germiston Meadowdale Mall Retail 42.6 5 Virgin Active The Victoria Centre - Pietermaritzburg Retail 38.2 10 Pick n Pay Kimberley Kim Park Retail 27.2 11 Telkom VWL Building Offices 22.4 2 Fruit and Vegetable City Roodepoort Hillfox Power Centre Retail 18.4 10

• Tenant retention 74%

39

Vacancy profile % of gross rentalVacancy profile - % of gross rental

12 0%

9 7%10.0%

12.0%

8.6%

9.7%

8.0%6.8%

5.9%

1.7%

0.9%

4.0%

6.0%5.0%

3.3%2.0%

0.0%Retail Offices Industrial Total

Trading vacancy Development vacancy

40

g y p y

Vacancy profile % of gross rental

12%

Vacancy profile - % of gross rental

8.9%8.6%

9.7%10%

5 0%

7.1%

5 1%5.8%

7.9%

6.9%

5 0%

6.8%

6%

8%

0 9%Dev.vacancy

5.0%4.2%

5.1%5.0%

4%

3 3%

1.7%

0.9%

5.9%Dev.vacancy

0%

2%

R t il Offi I d t i l T t l

3.3%

Retail Offices Industrial TotalMarch/11 September/11 March/12

41

Vacancy profile % of GLAVacancy profile - % of GLA

• Overall vacancy reduced from 6.5% in September 2011 to 6.1% at end March.Overall vacancy reduced from 6.5% in September 2011 to 6.1% at end March.

• Retail and Industrial vacancies reduced, while offices increased.

12 0%

7 7%8.7%

9.7%10.0%

12.0%

4.8%

6.0%5.5% 5.3%

4.6%

7.7%

6.5%7.0%

6.1%6.0%

8.0%

3.6%

2.0%

4.0%

0.0%Retail Offices Industrial Total

March/11 September/11 March/12

42

Individual properties vacancy profileIndividual properties vacancy profile(% of GLA) (vacancy > 500m²)

Durban Embassy (11%)Randburg Square (7%)

Germiston R24 (10%)Randburg Trevallyn (11%)

Midrand Allandale Park (22%)Jhb Eva Park (52%)

Bedfordview GIS (17%)Roodepoort Robertville Mini Factories (6%)

Sandton Sunninghill Place (22%)Sony Building (Midrand) (20%)

Roodepoort Hillfox Power Centre (7%)Sandton St Andrews Complex (27%)

Pretoria Sanwood Park (49%)

Bloemfontein Plaza & Parkade (3%)Durban Phoenix Plaza (4%)

Windhoek 269 Independence Avenue (8%)Dobsonville Shopping Centre (5%)Grosvenor Shopping Centre (24%)

Parow Industrial Park (6%)Bedfordview GIS (17%)

Pine Crest (50%) (3%)Lichtenburg Shopping Centre (8%)

259 West Street Centurion (13%)Randburg Triangle (25%)Kimberley Kim Park (8%)

De Tijger Office Park (24%)Bloemfontein Plaza & Parkade (3%)

0m² 1,000m² 2,000m² 3,000m² 4,000m² 5,000m² 6,000m² 7,000m²

Centurion N1 (5%)Pinetown Westmead Kyalami Park (3%)

Glencairn Building Eloff Street (4%)Nelspruit Sanlam Centre (4%)

43

Ratio of gross recurring cost to property revenue stable portfoliorevenue - stable portfolio

40%

33.0% 32.4% 32.3%34.4% 34.2%

36.6%

30%

35%

40%

20.5% 20.4% 19.2% 19.3% 18.0% 18.4%20%

25%

10%

15%

0%

5%

Mar-07 Mar/08 Mar/09 Mar/10 Mar/11 Mar/12

All recurring expenses All recurring expenses excluding rates & taxes and electricity

44

Recurring expense categoriesRecurring expense categories

B d d bt

Sundry expenses4%

Asset management fee3%

Bad debt2% Insurance premiums

2%

Property management

Maintenance contracts6%

Government services48%

Property management fee8%

Cleaning & security10%

Rates & taxes17%

45

83% of costs from top four categories

Property portfolio bad debt and arrears analysisProperty portfolio - bad debt and arrears analysis

T t d d b R0 7 illi f M h 2011 t R20 3 illi t• Tenant arrears reduced by R0.7 million from March 2011 to R20.3 million at year end.

• Impairment allowance increased marginally from R9 9 million (March 2011)Impairment allowance increased marginally from R9.9 million (March 2011) to R10 million at 31 March 2012.

R000R000

• Impairment allowance 1 April 2011

• Allowance for receivable impairment for the year

9 911

1 555• Allowance for receivable impairment for the year

• Receivables written off as uncollectable

1 555

(1 438)

• Impairment allowance 31 March 2012 10 028• Impairment allowance 31 March 2012 10 028

Bad debt write-off per the statement of comprehensive income 6 641

46

Asset management vs property managementAsset management vs property management

V kil h k d t d t t d l i li ti• Vukile has worked on an outsourced property management model since listing.• Asset management provides strategic direction, guidance and mandates in which the

property managers need to manage the properties on a daily basis.• Relationship managed through a service level agreement with specific performance

targets– Formalised monthly meetings to monitor performance.– Frequent interaction between asset and property managers.– Partnership between Vukile and its property managers very solid.

• Following a tender process, Broll and JHI were appointed for three years from 1 S t b 20111 September 2011.

• Current portfolio distribution between property managers:

Market value Number of propertiesRm % %

Broll 2 199 36% 37 52%JHI 3 710 61% 34 47%Old Mutual 204 3% 1 1%

47

Old Mutual 204 3% 1 1%

Leasing initiatives

F d t d ith l i b k d i F b 2012

Leasing initiatives

• Focus groups were conducted with leasing brokers during February 2012.

• As a result of these, a number of initiatives will be implemented to improve:– The relationship between Vukile and the broker fraternity.

– Communication of vacancy information to brokers.

– Leasing processes, i.e. documentation required, etc.

– Marketability of our products.

• We have introduced a broker rewards scheme, called the Power to Move.

• We have launched a broker website that will enable brokers to:– Register to work on the Vukile portfolio.Register to work on the Vukile portfolio.

– Access vacancy information.

• We have launched an incentive scheme for property managers with quarterly and annual awards, based on the most m² moved.awards, based on the most m moved.

• Property specific incentives to tenants and brokers will be introduced at properties with high vacancies.

48

Vacancy websiteVacancy website

49

Sanlam acquisitionSanlam acquisition

R1 5 billi tf li h d f S l t f d 25 A il 2012• R1.5 billion portfolio purchased from Sanlam, transferred 25 April 2012.

• Assets integrated into Vukile.

• The handover between property managers is in process for 1 June 2012.

• Upgrading/extension projects are being considered for:

– Durban Workshop

– Bellville Santyger

– Bellville Tijger Parks

– Pretoria Sancardia

50

Sanlam acquisitionSanlam acquisitionUpdate on vacancy and expiries:

100%60,000

70,000

73%

84%89%

78%

86%

100%

40,000

50,000

m²)

50%

39%

63%

20,000

30,000 GLA

(m

26,4

41

65,8

71

41,2

90

21,3

46

8,64

0

20,0

96

24,7

67

46,7

22

44,9

05

26,4

58

15,7

40

25,0

58 14%

13%

-

10,000

,

-Vacant Mar/13 Mar/14 Mar/15 Mar/16 Beyond March 2016

At Deal Approval April 12

51

Re developments / upgradesRe-developments / upgrades

Property Project detail Total Yield Completion date Notes

Projects completed

Property Project detail Additional Total Yield Completion date Notes

36.50 Mala Plaza , Malamulele Extension and upgrade 1,112 m² 20.10 9.3% Jun 2011

Grosvenor Crossing, Bryanston Upgrade ‐ 7.50 - Nov 2011 (1) Grosvenor Crossing, Bryanston Upgrade 7.50 Nov 2011 (1)

Hillfox Value Centre New premises for Cashbuild 1,337 m² 8.90 10.0% Oct 2011

Projects approved

Property Project detail Additional Total Yield Completion date Notes

144.90 Randburg Square Upgrade and maintenance : Phase 1 80.80 - Jun 2012 (1)

Bellville Louis Leipoldt Hospital Upgrade for Medi Clinic 33.50 - Apr 2013 (2)

Hillfox Value Centre Upgrade : Phase 1 6.50 - Apr 2012 (1)

Hillfox Value Centre Upgrade : Phase 2 4.00 - May 2012 (1)

Oshakati Centre Rede elopment of e Standard Bank site 2 312 m² 20 10 11 1% J l 2012

Note (1): Post the upgrade/revamps higher rentals on renewals and reduced vacancies can be expected.Note (2): This capex was agreed as part of a new 15 year lease.

Oshakati Centre Redevelopment of ex-Standard Bank site 2,312 m² 20.10 11.1% Jul 2012

52

Randburg Square upgradeRandburg Square upgrade

Th d i tl i t ti i t d ill i l d th• The upgrade is mostly income protecting in nature and will include the following:

– Upgrading of the Mall areas i e replacing floor tiles shop fronts bulkheads andUpgrading of the Mall areas, i.e. replacing floor tiles, shop fronts, bulkheads and light fittings.

– Creating new premises in the Mall leading to the office foyer.

– Reconfiguration of the Woolworths area.

– Upgrading of the Mall entrances in order to improve the visibility.

– Improving the centre and tenant signage to the exterior of the building.

– Upgrading of toilet facilities.

– The replacement or upgrade of all obsolete equipment and maintenance to the remaining services.

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Randburg Square upgrade costs and timing

Combined phase 1 & 2 capex New work Services Total

Randburg Square upgrade - costs and timing

Combined phase 1 & 2 capex New work Services Total

(Rmillion) Tenant cost

Upgrade

Phase 1 7.5 55.2 18.1 80.8

Phase 2 19.6 54.3 52.8 126.7

Final estimated capex 27 1 109 5 70 9 207 5Final estimated capex 27.1 109.5 70.9 207.5

Building Programme Start Finish

Phase 1 June 2011 June 2012

Phase 2: lower level July 2012 Nov 2012

Phase 2: upper level July 2012 May 2013

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Randburg Square upgrade -market al e per m² comparison

At l ti th j t d k t l f R db S ( ffi

market value per m² comparison

At completion the projected market value for Randburg Square (offices included) will be R417 million, or R8 118/m².

This compares as follows with the R/m² value of a few other properties:

Property GLA /m² Market Value per m²

Phoenix Plaza, Durban 24 342 R20 351

Daveyton 17 095 R10 676Daveyton 17 095 R10 676

Pine Crest, Pinetown 40 484 R10 200

Dobsonville Centre, Soweto 23 133 R9 918

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Randburg Square upgrade tenant profileRandburg Square upgrade - tenant profile

Aft l ti th t t fil ill i t f ± 90% ti l t t• After completion the tenant profile will consist of ± 90% national tenants.

• The following national retail groups have either committed to lease or are seriously considering leasing premises for one or more of their brands:

– Nedcor

– Foschini

Truworths– Truworths

– Edcon

– Ellerines

– Mr Price

– Pepcor

– Woolworths

• In total, 18 new stores will be opened providing a much wider selection to our customers.

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Randburg Square architects’ perspectivesRandburg Square - architects’ perspectives

57

Prospects, plans, acknowledgements and closing

LAURENCE RAPPProspects, plans, acknowledgements and closing

58

Strategic priorities for current yearStrategic priorities for current year

• Grow the portfolio• Grow the portfolio

– Hammersdale: 19 000m², R194 million, completion date April 2013.

– Strong pipeline being evaluated in middle (LSM 3 – 6) income

shopping centres.

– Proactive approach to dealmaking.

• Building sustainable partnerships

Broaden shareholder

base

Building sustainable partnerships

Grow the portfolioBuilding sustainable partnerships

– Looking to conclude JV agreement with leading developer.

– Closer working relationship with property managers.

Optimiselong and

short term returns for unitholders

Improved customer

and tenant f

Trans-formation

• Improved customer and tenant focus

– Tenant retention.

– Conducting demographic research into growth nodes across SA.

focus

Minimisefunding cost

and refinance

risk

Invest in our people

g g p g

– Tenant and customer surveys for 2012.

– On-going broker interaction through website, regular meetings and updates.

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Strategic priorities for current yearStrategic priorities for current year

Mi i i f di t• Minimise funding costs

– Refinance of R450 million ABSA facility in June 2012.

• Invest in our people– Focus on remuneration structures.– Strengthening the investment team.– Introduce new asset managers.

Broaden shareholder

base

Building sustainable partnerships

Grow the portfolio

• Transformation– Employment equity opportunities.– Overall transformation strategy.

Optimiselong and

short term returns for unitholders

Improved customer

and tenant focus

Trans-formationgy

• Optimise long and short-term returns for unitholders– Look to reduce lumpiness in earnings.– Improve quality of offices and industrial

focus

Minimisefunding cost

and refinance

risk

Invest in our people

Improve quality of offices and industrial.– Revamps and upgrades.– Growth in distribution.

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ProspectsProspects

• Economy still fragile and susceptible to global weakness.

• Retail should continue to perform well with strong tenant p gdemand.

• Industrial looking more promising• Industrial looking more promising.

• Offices still challenging but may have stabilised.

• Underlying property fundamentals are generally positive but concerns still exist with rising electrical and municipalbut concerns still exist with rising electrical and municipal costs.

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ProspectsProspects

O ll bl h i di ib i f• Overall we expect reasonable growth in distributions for next year:

Underlying property fundamentals intact.

Big sales commission from Sanlam acquisition.

Better funding costs.

x Base effects are a challenge due to non recurring lease payment in March 2012 year.

x Potential yield drag from selling higher yielding but riskier properties.

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AcknowledgementsAcknowledgements

B d• Board

• Property managers

• Service providers

• Brokers and developers• Brokers and developers

• Tenants

• Investors

• Funders

• Colleagues

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Questions and answers

CLOSINGQuestions and answers

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