Attacq Interim Results 2017 - The Vault attacq interim results 2017 1-2-general overview 3 portfolio...

FOR THE SIX MONTHSENDED 31 DECEMBER 2016

INTERIM RESULTS

1ATTACQ INTERIM RESULTS 2017

- 2 -

GENERAL OVERVIEW 3

PORTFOLIO OVERVIEW 7

INVESTMENTS SOUTH AFRICA 8

INVESTMENTS NON-SA 13

DEVELOPMENTS 18

FINANCIAL RESULTS 28

LOOKING AHEAD 38

QUESTIONS & ANSWERS 42

APPENDICES 44

AGENDA

DEVELOP

GROW

INVEST

SLIDE

GENERAL OVERVIEW

ATTACQ INTERIM RESULTS 20172

- 5 -

ATTACQ HISTORY

6.02

7.04

9.55

11.0

9

12.7

8

18.4

6

23.3

0

27.6

3

27.1

3

3.99

4.35

4.31

4.62

5.35

9.91

11.9

6

13.4

8

13.1

9

19.3%

10.4%11.7%

15.5%

19.1%

16.1%17.7% 17.0%

14.4%

0%

5%

10%

15%

20%

25%

0

5

10

15

20

25

30

Jun 2009 Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Dec 2016

TOTAL ASSETS ATTRIBUTABLE NAV 3 YEAR ROLLING ADJUSTED NAVPS CAGR

R’billion Change

- 4 -

YEAR-ON-YEAR HIGHLIGHTS

* CAGR: Compounded Annual Growth Rate

NET RENTALINCOME

+25.90%Dec 2016: R668.55 millionDec 2015: R531.03 million

ADJ NAVPS CAGR*FROM INCEPTION

27.69%Dec 2016: 27.69%Dec 2015: 30.91%

WATERFALLBULK COMPLETED

+101.23%Dec 2016: 677 001 m²Dec 2015: 336 435 m²

3 YEAR ROLLINGADJ NAVPS CAGR*

14.43%Dec 2016: R21.35 Adj NAVPSDec 2013: R14.25 Adj NAVPS

TOTAL OPERATING COSTSOF GROSS ASSETS

0.46%Dec 2016: 0.46%Dec 2015: 0.38%

GROUP GEARING(LOAN TO VALUE)

41.40%Dec 2016: 41.40%Dec 2015: 39.69%

DEVELOP

GROW

INVEST


- 6 -

STRATEGIC EXECUTION HIGHLIGHTS DECEMBER 2015 TO DECEMBER 2016

Invested in partnershipswith Equites, Zenprop,

Barrow, Artisan, Atterbury Europe

Internaliseddevelopmentmanagement

Successful opening of

Mall of AfricaAverage trading density of R2 777 m² (opening to December 2016)

>1.1 million visitors per month

6buildings in SA, adding primary GLA of 200 990 m²

completed Vacanciesreduced from 3.4%

to 2.6%

Sold: Great Westerford (50%), MAS shares,The Club, Geelhoutboom, Atterbury,

8 industrial buildings (Equites deal)

capital recycledR1.6 bn

Total operating costs0.46% of gross assets

94.7%collection rate

DEVELOP GROWINVEST

Diversified portfolio

MAS revised itsinvestment strategy

High quality directly held property portfolio

Rebranded to communicate ourvision and offering to the market

WALE 6.5 years

11 bursaries via Atterbury Trust

Contributions made toColumba Leadership Programme, Property Point and CEO Sleepout

8Green rated buildings

(by design) and1 Gold LEED rated building

Completed 3 rooftop PV plantswith a total capacity of

5 909 kWpAnother 2 installations underway

Normalised expenses toincome ratio (excl. utilities)

15.9%

1.2 million m² development rights in the centreof Gauteng, of which 609 000 m² bulk is serviced

A further 665 425 m²of bulk jointly secured with

Sanlam Propertiesat Waterfall

NOTES


SOUTH AFRICA 69%

INVESTMENTSSOUTH AFRICA

PORTFOLIOOVERVIEW

66%

13%

21% Jun 2016

69%

19%

12%

Dec 2016

DEVELOPMENTS

SOUTH AFRICA

NON-SA

Percentages based on gross assets


- 9 -

SA PORTFOLIO

RETAIL

HOTEL

LIGHT INDUSTRIAL

OFFICE AND MIXED-USE

80.3%

6.8%

12.9%

GAUTENG

NORTH WEST

WESTERN CAPE 13.0%

6.9%

80.1%

Portfolio value by location

Dec 2016 Jun 2016

2.3%4.9%

34.6%

58.2%

Dec 2016

58.4%

33.1%

6.1%2.4%

Jun 2016

Portfolio value by sector

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

NOTES


- 11 -

MALL OF AFRICA• Successfully opened 28th April 2016

• 122 884 shoppers on opening day

• >1.1 million average shoppers per month(opening to December 2016)

• R2 777 m² average trading density(opening to December 2016)

• Average rental (including anchors) R233 / m²

• National retailers indicated their Mall of Africabranch trades in top 5 of their SA portfolio

• Won 2016 Spectrum Award for the bestretail development in the category ofnew regional and super-regionalshopping centres

• Dedicated Gautrain bus route

• iStore opened with the launch ofiPhone 7 and sold the mostphones across SA stores

- 10 -

QUALITY PROPERTY PORTFOLIO

* WALE: Weighted average lease expiry profile^ Collection rate based on total arrears as a percentage of rental income# Weighted average rental escalations~ Gross weighted average rental R / m² per month (basic rental + operating cost recoveries)

1. Eikestad Mall 2. MooiRivier Mall 3. Mall of Africa4. Garden Route Mall 5. Brooklyn Mall

VACANCIES

2.6%Dec 2016: 2.6%Dec 2015: 3.4%

WALE* PROFILE

6.5 YEARSDec 2016: 6.5 yearsDec 2015: 6.8 years

COLLECTION RATE^

94.7%Dec 2016: 94.7%Dec 2015: 95.8%

RENTAL ESCALATIONS#

7.6%Dec 2016: 7.6%Dec 2015: 7.9%

RENTAL~ R / m²

R158.8Dec 2016: R158.8 / m²Dec 2015: R138.3 / m²

NON-GLA INCOME

+105%Dec 2016: R8.2 millionDec 2015: R4.0 million


- 12 -

TRADING DENSITIES

0

1 000

2 000

3 000

4 000

5 000

BrooklynMall

EikestadPrecinct

Garden RouteMall

GlenfairShopping Centre

Lynnwood Bridge- Retail

Mall ofAfrica

MooiRivierMall

NewtownJunction

WaterfallCorner

12 MONTHS AVERAGE ENDING DEC 2016 12 MONTHS AVERAGE ENDING DEC 2015

R / m²

The Mall of Africa has been trading since 28 April 2016, which equates to 8 months

3 122▲1%3 137

2 327

▲5%2 439 2 436

▲13%2 748

4 467

▲5%4 692 4 735

▲2%4 820

2 7772 410

▲2%2 451

1 373

▲10%1 508

3 375▼(2%)3 310

NOTES


- 14 -

MAS• 38.6% held by Attacq at year end• Attacq equity accounts for MAS

› R2.4 billion equity accounted value vs market value of R3.3 billion• MAS strategy: focus on income and distribution per share growth• Historical markets: Western Europe; Germany, UK and Switzerland• Expanded investment focus to Central and Eastern Europe via Prime Kapital

Investment JVs:› Development JV focusing on new developments› Investment JV focusing on accretive acquisitions

HIGHLIGHTS• Distribution per share increased by 19.3%• Rental income increased by 80.9% vs December 2015• 50.0% increase in investment property vs June 2016• Nova Park acquisition in Poland under Prime Kapital JV• Balance sheet optimisation - drew down on €80.4 million debt

MAS’ New Waverley development

INVESTMENTSNON-SA

NON-SA 19%


- 15 -

CYPRUS

• Attacq has a 48.8% shareholding in Atterbury Cyprus• Atterbury Cyprus holds 99.7% of Shacolas Emporium Park and

99.5% of the Mall of Engomi• Cyprus economy returned to growth and interest rates reduced• Both centres are trading well• Planning approval process underway for Mall of Cyprus

expansion

PROPERTY SHACOLAS EMPORIUM PARK THE MALL OF ENGOMI

Location Nicosia Nicosia

GLA 47 000 m² 13 600 m²

Value €170.0 million €37.8 million

Vacancy 2.3% 0.0%

Attacq effective holding 48.6% 48.5%

Potential expansion 6 500 m² 1 300 m²

Mall of Engomi

NOTES


- 17 -

AFRICA

• 5 operational malls• Portfolio includes dominant assets in major cities of Accra, Lusaka and Lagos:

› Accra Mall› Manda Hill› Ikeja City Mall

• Weak commodity cycle, strong USD and high inflation challengescontinue

• Focus remains:› Delivering Kumasi City Mall and settling West Hills Mall and

Achimota Mall› Managing assets through the cycle› Improving liquidity in the portfolio

* Data provided at 100% levelAttacq owns 31.25% of AttAfrica and 25% of Ikeja City Mall

PROPERTY GLAVALUATION

(USD’000)ATTACQ SHARE

(USD’000)VALUE

(USD’000)VACANCY

%

Operational portfolio summary* 127 660 m² 544 718 101 796 4 267 / m² 4.8

West Hills Mall

- 16 -

SERBIA

• Attacq has a 25.0% shareholding in Atterbury Serbia• Atterbury Serbia acquired a 33.3% shareholding in existing portfolio of 5 properties

with a total value of €228.0 million in December 2015• Subotica added to portfolio April 2016• Additional 16.7% acquired in portfolio by Atterbury Serbia during the current period• Prime portfolio asset is the Ušće Shopping Centre, Serbia’s largest mall• Seventh retail asset, Borca (12 996 m²) acquired in January 2017• 50 / 50 development fund capitalised with €40.0 million to undertake retail developments -

land acquired for development, in advanced stages of acquiring a further site

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

Location Belgrade Belgrade Belgrade Belgrade Belgrade Subotica

GLA 46 565 m² 8 350 m² 2 655 m² 574 m² 4 417 m² 9 989 m²

Vacancy 0.9% 0.0% 0.0% 0.0% 0.0% 0.0%

Attacq effective holding 12.5% 12.5% 12.5% 12.5% 12.5% 12.5%


DEVELOPMENTS 12%

DEVELOPMENTS

NOTES


- 20 -

DEVELOPMENTS UNDER CONSTRUCTION

Gateway West• Primary gross lettable area: ±13 891 m²

• Segment: office

• Estimated value on completion: ±R387.6 million

Gateway West

- 19 -

WATERFALL SECOND WAVE

• What next after Mall of Africa?

• Catalyst for growth: Mall of Africa and 1.3 Ha Waterfall Park• Projected growth of office space at Waterfall City ±30% p.a. until 2020 / 21

• Examples

• Benefits of Waterfall

› Central location› Infill development› Excellent access› Unique urban design

and infrastructure› 1.3 Ha Waterfall Park

• Corporate consolidation

• Economic benefit

• 1.2 million m² remaining bulk

• ±608 000 m² serviced development rights

Source: Urban Studies Newsletter, June 2016

Jul 2008

Sep 2016


- 21 -

DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED

PwC Tower and Annex*• Primary gross lettable area: ±45 223 m²

• Segment: office

• Estimated value on completion: ±R1.6 billion PwC

* Data provided at 100% levelAttacq has a 75% undivided share

NOTES


- 23 -

FUTURE DEVELOPMENTS | CONTINUED

The Atria• Primary gross lettable area: ±38 000 m²

• Segment: office and mixed-use

› 2 office buildings› 1 residential tower with ±120 apartments› 1 hotel

• 50% JV partnership with Barrow Group

The Atria

- 22 -

FUTURE DEVELOPMENTSCorporate Campus• Primary gross lettable area: ±34 068 m²

• Segment: office

• 50% JV partnership with Zenprop

• First tenant secured

• Development of Phase I commenced

CorporateCampus


- 24 -

MALL OF AFRICA

WATERFALLCITY

LOGISTICSPRECINCT

DISTRIBUTIONCAMPUS


Sanlam joint ventures• 665 425 m² of additional bulk

• Attacq holds 50.0% of the retail JV*

• Attacq holds 20.0% of the industrial JV and hasthe right to increase its shareholding to 50.0%

• Economies of scale

• Availability of bridging funding

• Attacq appointed as thedeveloper and asset manager

RETAIL

JV DEAL

RETAIL AND INDUSTRIAL / WAREHOUSING

INDUSTRIAL / WAREHOUSING

* JV: joint venture

NOTES


- 26 -

New warehouse secured with multi-national• Primary gross lettable area: ±32 000 m²

• Segment: light industrial

• Aiming to commence construction by end March 2017


BMW

Location

- 25 -


Waterfall Point• Total saleable area: ±9 584 m²

• Segment: office (sectional title)

• Total development profit: ±R25.0 million

Waterfall Point


- 27 -


Shortlisted for another corporate consolidation• Primary gross lettable area: ±42 000 m²

• Segment: office

• Decision pending: to be awarded soonLocation

NOTES


- 29 -

EQUITY MOVEMENT

8 000

10 000

12 000

14 000

Jun 2015 Share issues A-F-Sreserve

Distributablereserve

FCTR Share-basedpaymentreserve




Dec 2016

NAV bridge (R’million)

14

16

18

20







Dec 2016

NAVPS bridge (R)

11 957.2 3.4 164.9

1 075.9 273.0 10.1 13 484.5 12.0 (66.0) 73.1 (326.5) 14.5 13 191.6

17.06 0.00 0.23

1.540.39 0.01 19.23 0.02 (0.09) 0.10 (0.51)

0.02 18.77

FINANCIAL RESULTS


- 30 -

TOTAL NET PROFIT (R’000) DEC 2016 DEC 2015 % CHANGE

Completed buildings 311 239 337 021 (7.6)

Developments* 47 620 225 790 (78.9)

International (369 512) 635 640 (158.1)

Corporate 14 196 49 878 (71.5)

Total net profit 3 543 1 248 329 (99.7)

INCOME STATEMENT

* Developments under construction, development rights, infrastructure and services and land

Decrease due to the completion of the Mallof Africa in April 2016

The loss is due to impairments of investmentsin Ikeja City Mall, AttAfrica and Nova Eventisas well as foreign exchange losses

NOTES


- 32 -

R’000 DEC 2016 JUN 2016 % CHANGE

Investment properties^ 19 541 353 19 591 664 (0.3)

Investments*^ 5 935 254 6 222 856 (4.6)

Other assets 1 648 750 1 815 157 (9.2)

Total assets 27 125 357 27 629 677 (1.8)

Total interest bearing borrowings 11 441 346 11 457 520 (0.1)

Total non-interest bearing borrowings 2 509 085 2 700 837 (7.1)

Total liabilities 13 950 431 14 158 357 (1.5)

Equity attributable to owners ofthe holding company

13 191 599 13 484 521 (2.2)

Less: non-controlling interest (16 673) (13 201) 26.3

Equity 13 174 926 13 471 320 (2.2)

Disposed of properties to the value of R940.7 m

Decrease due to foreign exchange lossesand impairments

BALANCE SHEET

^ Includes non-current assets held for sale* Includes equity and net loans advanced

Decrease in cash of R225.7 m and trade and other receivables of R69.4 m

Decrease in trade and other payables of R164.5 m

- 31 -

NORMALISED NET PROFIT

0

100

200

300

400

500

Totalcomprehensive

income

Net forexlosses

Impairmentof Ikeja

City Mall

Impairment ofNova Eventis

Impairment ofinvestments

Loss frommark-to-market

on swaps

Loss on PwCSunninghill

Normalisedcomprehensive

income

R’million

3.5

83.6%10.0%

3.0%3.4%

R476.6 m

COMPLETED BUILDINGS

DEVELOPMENTS

CORPORATE

INTERNATIONAL

124.621.3

155.6

84.220.5

66.7 476.6


- 33 -

TOTAL ASSETS (R’000) DEC 2016 JUN 2016 % CHANGE

Completed buildings 17 572 130 17 094 407 2.8

Developments* 3 239 387 3 604 307 (10.1)

International 5 239 824 5 833 769 (10.2)

Corporate 1 074 016 1 097 194 (2.1)

Total assets 27 125 357 27 629 677 (1.8)

Increase mainly due to completion ofMall of Africa and fair value adjustments

The reduction is due to the completion offour properties in Waterfall

BALANCE SHEET

* Developments under construction, development rights, infrastructure and services and land

NET ASSET VALUE (NAV) (R’000) DEC 2016 JUN 2016 % CHANGE

Completed buildings 7 653 511 7 148 269 7.1

Developments* 2 243 757 2 665 664 (15.8)

International 4 132 382 4 635 029 (10.8)

Corporate (854 724) (977 642) (12.6)

Total NAV 13 174 926 13 471 320 (2.2)

Decrease due to foreign exchange lossesand impairments

NOTES


- 35 -

WEIGHTED AVERAGE CAPITALISATION RATES

SEGMENTCAP RATES

DEC 2016CAP RATES

DEC 2015

Office and mixed-use 7.76% 7.84%

Industrial 7.75% 7.75%

Hotel 8.07% 8.13%

Retail 6.92% 6.89%

Total portfolio 7.32% 7.35%

We have sold Great Westerford during the period which had a cap rate of 8.75%

City Lodge Waterfall’s cap rate improvedby 0.25% year-on-year

Year-on-year Newtown Junction and Brooklyn Mall cap rates increased by 0.25% respectively

- 34 -

INVESTMENT PROPERTIES INCLUDING NON-CURRENT ASSETS HELD FOR SALE

14 000

16 000

18 000

20 000

Jun 2015 Sold Capex FVA -development

underconstruction

FVA -development

rights

FVA -completed

Jun 2016 Sold Capex FVA -development

underconstruction

FVA -development

rights

FVA -completed

Dec 2016

R’million

16 187.9 (286.3)

2 615.8

758.3 (242.0)557.9 19 591.6 (940.7)

616.3 78.1 30.4 165.6 19 541.3


- 36 -

INVESTMENTS

2 378

2 722

803 892 792 877

465 367 292 327192 86 181

381175 161 174 163 110 52 103 80

197 195

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec JunMAS Cyprus AttAfrica Serbia Ikeja City

MallPwC

partnershipNova

EventisAtterbury Namibia Artisan Winterrobin EA Waterfall

LogisticsOther

EQUITY LOAN

R’million

NOTES


LOOKING AHEAD

- 37 -

INTEREST BEARING DEBT

DEC 2016 JUN 2016

Gearing 41.4% 39.9%

Weighted average cost of debt 9.4% 9.2%

Total hedges as a % of total committed facilities 80.0% 79.5%

6.3%

44.7%

6.5%3.0%

9.5%

29.3%

0.7%INVESTEC BANK

NEDBANK

RMB

SANLAM

ABSA

STANDARD BANK

BANK OF CHINA

6.3%

45.0%

7.8%3.1%

9.5%

28.0%

0.3%

Dec 2016 Jun 2016

Increased gearing due to debt used to fund the R616.3 million capex spend during the last six months

Increase in Dollar funding interest rates and general increase in JIBAR rates

There are forward starting hedges in place for developments, allowing for a reasonable level of interest rate certainty and income visibility once the developments are completed


- 39 -

LOOKING AHEADRisks• Political uncertainty in SA• Lack of local services: power and water• Tenants defaulting• Persistent low demand for commodities• Market volatility - Brexit and USA

Key focus areas• Waterfall

› Distribution and logistics› Corporate consolidation and leverage the opening of Mall of Africa

• Optimise the existing SA portfolio• Consolidation and stabilisation of the African portfolio• Optimise balance sheet / recycle capital / sale of non-core assets

Gateway West

NOTES


- 41 -

BENEFITS BEYOND OUR BOTTOM LINE

Property Point• Contributed nearly R3 million towards current intake (2016)• 8 businesses graduated on 22 November 2016• Average revenue growth of 35.8%, created 65 full-time

jobs

Columba Leadership• Contributed R315 000 (2016: R290 000)• Total contribution over four years: R1.1 million• Benefitting 89 learners and 9 educators in total• New Grade 10 intake of 12 learners and

3 educators• Targeting schools in Olievenhoutbosch

Atterbury Trust• Bursaries for tertiary education• Financial support to various schools in

Pretoria West• Allocated contribution R690 000

(2016: R640 000)

Attacq the FutureBana Ba Rona ECD Centre

- 40 -

LOOKING AHEAD | CONTINUED

Potential going forward• Short term

› Distribution from MAS› Value upliftment from Mall of Africa› Newly secured deals

• Long term› Owning a city› Quality portfolio› Diversification in place› Mall of Africa - the catalyst

Allandale Building


QUESTIONS& ANSWERS

NOTES


APPENDICES

- 43 -

DISCLAIMER

This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or opinions, including statements withrespect to the company’s business, financial condition and results of operations. These statements, which contain the words “anticipate”, “believe”, “intend”, “estimate”,“expect”, “forecast” and words of similar meaning, reflect the directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend oncircumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Thereare a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Pastperformance of the company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the companyexpressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation isintended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements.

This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness,accuracy or fairness. This information is still in draft form and has not been legally verified. The financial information included herein is in draft form and unaudited. The company, itsadvisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current the information contained in thispresentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where theywould be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, isgiven by the company, or any of its subsidiary undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information oropinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connectiontherewith is accepted by any such person in relation to such information.


- 45 -

YEAR-ON-YEAR KPIs

1. CAGR: Compounded Annual Growth Rate

KPIDEC 20166 months

DEC 20156 months

JUN 201612 months

3 year rolling adjusted NAVPS CAGR¹ >15% 14.4 21.2 17.0Adjusted head office cost <0.5% 0.46 0.38 0.45Group gearing (loan to value) <60% 41.4 38.5 39.9Group interest cover ratio >1.2 times 1.1 1.2 1.3Minimum cash drag <5.0% 1.6 2.2 3.3Debt fixed (% hedged of total committed facilities) >70% 80.0 72.0 79.5Waterfall roll-out 26 250 m² / bi-annually 22 414 55 595 55 595

NOTES


- 47 -

R’000 DEC 2016 DEC 2015 % CHANGE

Completed buildings 165 620 221 931 (25.4)

Developments under construction 78 147 420 226 (81.4)

Development rights and land 30 363 (215 352) (114.1)

Other financial assets / liabilities (28 524) 229 568 (112.4)

Other investments - (20 670) (100.0)

Total fair value adjustments 245 606 635 703 (61.4)(400)

(200)

0

200

400

600

800

1 000

Dec 2016 Dec 2015

OTHER INVESTMENTSOTHER FINANCIAL ASSETS / LIABILITIESDEVELOPMENT RIGHTS AND LANDDEVELOPMENTS UNDER CONSTRUCTIONCOMPLETED BUILDINGS

R’000

FAIR VALUE ADJUSTMENTS

• Included in the December 2015 fair value for Developments under construction is R364.0 million development profit on Mall of Africa

• For December 2016 additional development rights were obtained versus December 2015 where the roll-out period of land was extended

• Nenegate had a positive effect on our December 2015 asset swap valuations

- 46 -

• MAS is equity accounted in our group results at a value of R2.4 billion (31 December 2015: R3.1 billion)The market value as at 31 December 2016 is calculated as R3.3 billion (31 December 2015: R3.4 billion)

• Included in MAS’ results is a currency loss of €28.5 million between 31 December 2015 and 31 December 2016due to the weakening of the Pound as a result of Brexit

NAV EXPLAINED

R’000 DEC 2016 DEC 2015 % CHANGE JUN 2016 % CHANGE

South Africa 9 042 544 8 251 083 9.6 8 836 291 2.3

Non-SA assets 4 132 382 5 346 943 (22.7) 4 635 029 (12.6)

Total NAV 13 174 926 13 598 026 (3.1) 13 471 320 (2.2)

Non-SA assets: equity

MAS € 165 462 185 367 (10.7) 165 886 (0.3)

Africa (AttAfrica and Ikeja City Mall) $ 19 887 32 006 (37.9) 21 998 (13.2)

Nova Eventis € 12 597 22 935 (45.1) 23 203 (45.7)


- 48 -

654

4 170 4 245

9931 380

1 967

4 916

468

1 129

0%

20%

40%

60%

80%

100%

0

1 000

2 000

3 000

4 000

5 000

< 1 year 1 to 3 years 3 to 5 years 5 to 7 years > 7 years

DEBT MATURITY HEDGE MATURITY DEBT MATURITY PERCENTAGE HEDGE MATURITY PERCENTAGE

R’million

INTEREST BEARING DEBT

NOTES


- 50 -

PORTFOLIO AND INVESTMENTS OVERVIEW AS AT 31 DECEMBER 2016 | CONTINUED

Non-SA markets

RETAIL PORTFOLIO

AttAfrica^

• Accra Mall, Accra, Ghana 15.0%

• Achimota Mall, Accra, Ghana 23.9%

• West Hills Mall, Accra, Ghana 14.3%

• Kumasi City Mall, Kumasi, Ghana 23.9%

• Manda Hill, Lusaka, Zambia 15.9%

Atterbury Serbia^

• Ušće Mall, Belgrade, Serbia 12.5%

• Immo, Belgrade, Serbia 12.5%

• Kanem, Belgrade, Serbia 12.5%

• Oaza, Belgrade, Serbia 12.5%

• Subreal, Belgrade, Serbia 12.5%

• Subotica, Subotica, Serbia 12.5%

• Borca Retail Park, Belgrade, Serbia 12.5%

• Development fund, Belgrade, Serbia 12.5%

Ikeja City Mall, Lagos, Nigeria^ 25.0%

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

RETAIL PORTFOLIO

Atterbury Cyprus^

• Shacolas Emporium Park, Nicosia, Cyprus 48.6%

• Mall of Engomi, Nicosia, Cyprus 48.5%

MAS (Germany, UK and Switzerland)^ 38.6%

Nova Eventis, Leipzig, Germany^^ 19.9%

KEY

** Vacant land

^ Accounted for as an investment in associate

^^ Accounted for as an investment

# Undivided share

xx Held for sale

All shareholdings represent Attacq’s effective interest

Ušće Mall

- 49 -

PORTFOLIO AND INVESTMENTS OVERVIEW AS AT 31 DECEMBER 2016

INDUSTRIAL PORTFOLIO

Amrod, Waterfall 100%

Dimension Data, Waterfall 100%

Massbuild, Waterfall 100%

Torre Industries, Waterfall 100%

HOTEL PORTFOLIO

City Lodge, Johannesburg 50%

City Lodge, Pretoria 100%

City Lodge, Waterfall 100%

RETAIL PORTFOLIO

Brooklyn Mall, Pretoria# 25%

Eikestad Precinct, Stellenbosch# 80%

Garden Route Mall, George 100%

Glenfair Boulevard, Pretoria 100%

Lynnwood Bridge, Pretoria 100%

Mall of Africa, Waterfall# 80%

MooiRivier Mall, Potchefstroom 100%

Newtown Junction, Johannesburg 50%

Waterfall Corner, Waterfall 100%

Waterfall Lifestyle, Waterfall 100%

Westwood Mall, Durban^ 34.4%

OFFICE AND MIXED-USE PORTFOLIO

Altech, Waterfall# xx 50%

Aurecon, Pretoria 100%

Brooklyn Bridge Office Park, Pretoriaxx 100%

Cell C Campus, Waterfall 100%

Group Five, Waterfall 100%

Lynnwood Bridge, Pretoria 100%

Majestic Offices, Johannesburg 50%

Maxwell Office Park, Waterfall# 50%

• Colgate

• Mac Mac House

• Magwa House

• Att House

• Golder

• Premier

• Honda

Newtown Junction, Johannesburg 50%

Novartis, Waterfall 100%

PwC, Sunninghill 100%

DEVELOPMENTS

OFFICE AND MIXED-USE PORTFOLIO

Gateway West 100%

PwC Tower and Annex, Waterfall# 75%

INDUSTRIAL PORTFOLIO

K101 Warehouse 100%

LAND AND DEVELOPMENT RIGHTS

Le Chateau** 100%

Development rights, Waterfall** 100%

KEY

** Vacant land

^ Accounted for as an investment in associate

^^ Accounted for as an investment

# Undivided share

xx Held for sale

All shareholdings represent Attacq’s effective interest

South Africa


- 51 -

PORTFOLIO OVERVIEW

# Primary GLA refers to the main rental generating GLA, e.g. warehouse, industrial, hotel, shop, office, ATM, mezzanineValues provided above reflect Attacq’s undivided share in the property: *25%; ^80%

Retail portfolio

PROPERTY NAME LOCATION KEY TENANTSPRIMARY GLA#

m²VALUATION

R’000VALUE

R / m²

BROOKLYN MALL* Pretoria Checkers, Dis-Chem, Game, Woolworths 18 689 777 467 41 600EIKESTAD PRECINCT^ Stellenbosch Checkers, Woolworths, Food Lovers Market, Game 37 717 863 477 22 894GARDEN ROUTE MALL George Dis-Chem, Game, Pick n Pay, Woolworths 53 584 1 339 063 24 990GLENFAIR BOULEVARD Pretoria Dis-Chem, Shoprite Checkers, SuperSpar 15 927 451 000 28 317LYNNWOOD BRIDGE - RETAIL Pretoria Planet Fitness, The Pro Shop, Woolworths 11 378 347 000 30 497MALL OF AFRICA^ Waterfall Game, Shoprite Checkers, Woolworths 98 678 4 080 000 41 347MOOIRIVIER MALL Potchefstroom Game, Shoprite Checkers, Woolworths 49 054 1 137 369 23 186NEWTOWN JUNCTION Johannesburg Pick n Pay, Shoprite Checkers, Ster Kinekor 33 653 622 000 18 483WATERFALL CORNER Waterfall Clicks, Shoprite Checkers, Woolworths 9 415 208 025 22 095WATERFALL LIFESTYLE Waterfall Bounce, Virgin Active 7 139 131 485 18 418TOTAL 335 234 9 956 886 29 701

Hotel portfolio

PROPERTY NAME LOCATION LEASE EXPIRYPRIMARY GLA#

m²VALUATION

R’000VALUE

R / m²

CITY LODGE - LYNNWOOD Pretoria 2020 7 946 195 000 24 541CITY LODGE - NEWTOWN Johannesburg 2026 5 828 109 300 18 754CITY LODGE - WATERFALL Waterfall 2025 5 744 104 864 18 256TOTAL 19 518 409 164 20 963

NOTES


- 53 -

PORTFOLIO OVERVIEW | CONTINUED

# Primary GLA refers to the main rental generating GLA, e.g. warehouse, industrial, hotel, shop, office, ATM, mezzanine~ Values provided above reflect Attacq’s undivided share in the property: ~75%. Recently secured projects are not included above

Industrial portfolio

PROPERTY NAME LOCATION LEASE EXPIRYPRIMARY GLA#

m²VALUATION

R’000VALUE

R / m²

AMROD Waterfall 2028 37 937 364 053 9 596

DIMENSION DATA Waterfall 2026 8 291 87 201 10 518

MASSBUILD DISTRIBUTION CENTRE Waterfall 2028 36 803 299 000 8 124

TORRE INDUSTRIES Waterfall 2026 8 930 128 927 14 438

TOTAL 91 961 879 181 9 560

Developments

PROPERTY NAME SECTOR COMPLETION DATEGLA

m²% PRE-LET

(GLA)TOTAL CAPITAL COST

R’000

VALUE ESTIMATEON COMPLETION

R’000

ESTIMATEDDEVELOPMENT PROFIT

R’000

GATEWAY WEST Office August 2017 13 891 - 363 733 387 623 23 890

PWC TOWER AND ANNEX~ Office January 2018 33 917 100 1 076 210 1 195 179 118 969

K101 WAREHOUSE Industrial September 2017 8 523 - 75 164 92 975 17 811

TOTAL 67 637 >67 1 515 107 1 675 777 160 670

- 52 -

PORTFOLIO OVERVIEW | CONTINUED

# Primary GLA refers to the main rental generating GLA, e.g. warehouse, industrial, hotel, shop, office, ATM, mezzanineValues provided above reflect Attacq’s undivided share in the property: *50%

Office and mixed-use portfolio

PROPERTY NAME LOCATION KEY TENANTSLEASE

EXPIRYPRIMARY GLA#

m²VALUATION

R’000VALUE

R / m²

ALLANDALE BUILDING Waterfall Schneider Electric, Wisetech, TransAfrica Mixed 15 266 400 985 26 267ALTECH* Waterfall Altech 2022 2 113 50 017 23 671BROOKLYN BRIDGE OFFICE PARK Pretoria Counsel Chambers, SARS Mixed 23 525 640 000 27 205CELL C CAMPUS Waterfall Cell C 2028 43 890 904 151 20 600GROUP FIVE Waterfall Group Five 2026 25 782 630 000 24 436LYNNWOOD BRIDGE - AURECON Pretoria Aurecon 2023 19 104 776 000 40 620LYNNWOOD BRIDGE - BLOUKRANS Pretoria Water Research Commission Mixed 7 223 212 000 29 351LYNNWOOD BRIDGE - KAAIMANS Pretoria Citadel Mixed 6 996 221 000 31 589LYNNWOOD BRIDGE - OFFICES Pretoria Adams & Adams, Sanlam Mixed 13 399 494 000 36 868MAXWELL OFFICE PARK - ATT HOUSE* Waterfall Attacq, Atterbury, Cipla Mixed 2 527 71 806 28 416MAXWELL OFFICE PARK - COLGATE* Waterfall Colgate 2025 2 122 63 687 30 013MAXWELL OFFICE PARK - GOLDER* Waterfall Golder Associates 2025 3 040 92 126 30 305MAXWELL OFFICE PARK - HONDA* Waterfall Honda, City Connect Mixed 1 986 55 290 27 840MAXWELL OFFICE PARK - MAC MAC HOUSE* Waterfall Black & Veatch, Strategic Solution Architects Mixed 3 144 88 817 28 250MAXWELL OFFICE PARK - MAGWA HOUSE* Waterfall Diageo, DOW Mixed 3 609 103 950 28 803MAXWELL OFFICE PARK - PREMIER* Waterfall Premier Foods 2024 2 000 58 125 29 063NEWTOWN JUNCTION NEDBANK Johannesburg Nedbank 2024 29 911 647 600 21 651NOVARTIS Waterfall Novartis 2024 7 982 222 395 27 862PWC SUNNINGHILL Sunninghill PwC 2025 25 525 291 644 11 426THE MAJESTIC Johannesburg Nedbank 2018 8 913 141 366 15 861TOTAL 248 057 6 748 775 27 207


- 54 -

15.4%

67.1% 1.9%4.0%

10.5%

1.1%

6.3%

13.5%

2.0%

62.7%

14.3%

1.2%

GREEN ELEMENTS

3 Star GBCSA

4 Star GBCSA

5 Star GBCSA

GLA EVOLUTION

Dec 2016 Jun 2016

200 000

400 000

600 000

800 000

Jun 15 Reconfigurations Completed Sold Jun 16 Reconfigurations Completed Sold Dec 16

m²

Gold LEED

GBCSA: Green Building Council of South Africa

NON-GREEN

57770 424

(56 266)

694 770

565 796 1 599

127 198 (14 558) 680 035

NOTES


- 56 -

0

100 000

200 000

300 000

400 000

500 000

Vacancy Month-to-month 2017 2018 2019 2020 2021+

HOTEL 7 946 11 572INDUSTRIAL 91 274OFFICE 13 384 540 3 990 36 566 7 873 2 732 191 671RETAIL 4 729 988 25 476 49 047 34 083 43 420 169 479TOTAL 18 113 1 528 29 466 85 613 41 956 54 098 463 996

GLA (m²)

LEASE EXPIRY PROFILE

2.6% 0.2%4.2%

12.3%

6.0%7.8%

60.4%

- 55 -

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

< 1 year 1 to 2 years 3 to 5 years 6 to 10 years > 10 years

AS AT DEC 2016 AS AT JUN 2016

GLA (m²)

PROPERTY AGEING OF GLA

24.9%172 711

40.6%281 815

6.6%45 994

11.6%80 525

16.4%113 725

19.3%130 760

45.9%311 712

7.6%51 827

18.5%125 594

8.7%60 142

Total GLADec 2016: 694 770 m²

Jun 2016: 680 035 m²


- 57 -

COMPLETED BUILDINGS

PROPERTY ALLANDALE BUILDING DIMENSION DATA TORRE INDUSTRIES AMROD

Sector Office Industrial Industrial Industrial

Location Waterfall Waterfall Waterfall Waterfall

Primary GLA 15 266 m² 8 291 m² 8 930 m² 37 937 m²

Value R401.0 million R87.2 million R128.9 million R364.1 million

Value / GLA R26 267 / m² R10 518 / m² R14 438 / m² R9 596 / m²

Mall of Africa

NOTES


- 59 -

WATERFALL BULKm² DEC 2016 % JUN 2016 %

Total approved bulk 1 903 901 100.0 1 871 835 100.0

Completed – held (382 566) (20.1) (347 546) (18.6)

Completed – sold (294 435) (15.5) (61 963) (3.3)

Under construction (67 682) (3.6) (140 321) (7.5)

Remaining bulk total 1 159 218 60.9 1 322 005 70.6

Remaining for development 1 159 218 60.9 1 224 886 65.4

Newly secured developments - - 97 119 5.2

60.9%

20.1%

15.5%

3.6%

Dec 2016

65.4%7.5%

3.3%

18.6%

5.2%

Jun 2016

REMAINING FOR DEVELOPMENT - NEW BULK SECURED

COMPLETED - HELD

COMPLETED - SOLD

REMAINING FOR DEVELOPMENT

UNDER CONSTRUCTION

- 58 -

WATERFALL VISIBLE CHANGES

Completed buildings• Maxwell Office Park• Allandale Building• Novartis• Mall of Africa• City Lodge

Buildings under construction• PwC Tower and Annex• Gateway West

Infrastructure and more• Road infrastructure (Waterfall City)• Upgraded Allandale N1 free flow

intersection• Waterfall Park• Imphomphoma substation• PV plants on the roofs of:

› Allandale Building› Novartis› Mall of Africa

1

4

5

1. Maxwell Office Park 2. Allandale Building and Novartis 3. Mall of Africa 4. City Lodge 5. PwC Tower and Annex

2

3


- 60 -

AFRICA

* Held via AttAfrica^ Proposed size# Opened November 2015

PROPERTYACCRA

MALL*WEST HILLS

MALL*MANDA

HILL*ACHIMOTA

MALL*KUMASI CITY

MALL*^IKEJA CITY

MALL

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

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

Vacancy 0.0% 5.9% 6.1% 11.8%# n/a 1.1%

Foot count 28 / m² 16 / m² 23 / m² 27 / m² Opening April 2017 30 / m²

Attacq effective holding 15.0% 14.3% 15.9% 23.9% 23.9% 25.0%

West Hills Mall

NOTES

40

NOTES

Directors

P Tredoux#* (Chairman)MC Wilken (CEO)M Hamman (CFO)MM du Toit#*HR El Haimer#*KR Moloko#*BT Nagle#*S Shaw-Taylor#*JHP van der Merwe#*LLS van der Watt*# Independent* Non-executive

Company Secretary

T Kodde

Attacq Limited

(Incorporated in the Republic of South Africa)(Registration number 1997/000543/06)JSE share code: ATT ISIN: ZAE000177218(“Attacq” or “the Company” or “the Group”)

Registered office

ATT House, 2nd FloorMaxwell Office ParkMagwa Crescent WestWaterfall City2090

Postal address

PostNet Suite 016Private Bag X81Halfway House1685

Transfer Secretaries

Computershare Investor Services Proprietary LimitedRosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196(PO Box 61051, Marshalltown, 2107)

Sponsor

Java Capital

GREYMATTER & FINCH # 10869

www.attacq.co.za

ATT House, 2nd Floor, Maxwell Office Park, Magwa Crescent West, Waterfall City, WaterfallTel +27 10 596 8892 Tel +27 87 845 1136 Fax +27 86 242 [email protected]

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