INTERIM RESULTS PRESENTATION - Growthpoint Statements... · 2017-09-27 · GROWTHPOINT PROPERTIES...

INTERIM RESULTS PRESENTATION

FOR THE SIX MONTHS ENDED

31 DECEMBER 2015

The Place, Sandton

GROWTHPOINT PROPERTIES INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

DISCLAIMER: The information contained in this document has not been verified independently.

No representation or warranty express or implied is made as to and no reliance should be placed on the fairness, accuracy,

completeness or correctness of the information or opinions contained herein. Opinions and forward looking statements

expressed represent those of the Company at the time. Undue reliance should not be placed on such statements and opinions

because by nature, they are subjective to known and unknown risk and uncertainties and can be affected by other factors

that could cause actual results and Company plans and objectives to differ materially from those expressed or implied in the

forward looking statements.

Neither the Company nor any of its respective affiliates, advisors or representatives shall have any liability whatsoever (based

on negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise

arising in connection with this presentation and do not undertake to publicly update or revise any of its opinions or forward

looking statements whether to reflect new information or future events or circumstances otherwise.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and no part of it shall

form the basis of or be relied upon in connection with any contract or commitment whatsoever.

GROWTHPOINT PROPERTIES INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2015 1

Notes:

AGENDA

Introduction & Highlights

Financial Review

Capital Management

Portfolio Update RSA

V&A Waterfront

GOZ

Conclusion

Annexures

Meadowbrook Estate, Germiston

INTERIM RESULTS PRESENTATION For the six months ended 31 December 2015

The Place, Sandton


Notes:

4

Introduction & Highlights Financial Review Capital Management Portfolio Update Conclusion

INTRODUCTION TO GROWTHPOINT

* Includes 100% of GOZ and 50% of V&A Waterfront.

R28,9bn 58 properties

1.4m m²


1.8m m²


2.2m m²


1.1m m²

R7,0bn 1 property

0.2m m²

R110,0bn*

531 properties

6.7m m²

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V&V&VV&VV&&V&V A AAAAAAAAAAWaWaWaWaWaWaWaWaWWaWaWaWaWWaWaWaWaWWWaWWaWaaateteteteteeteteeteeeteteteteteteteeeterffrfrfrr rooooooorooorooorororooonnnnnnnnnnnnaaaaaaaaaaaaaatetetetttetetetteteteteteteteteteeeerfrfrffrfrfrfrffrfrffrfrfrffrfrffrfrfrfrfrorororrororrororororoorororororoonnnnnnnnnnn nttntttntttntnttntttntntntntntnttt

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INTRODUCTION & HIGHLIGHTS

Willowbridge, Cape Town


Notes:

6


HIGHLIGHTS FOR THE PERIOD UNDER REVIEW

24.3% distributable income growth R2,4bn

6.0% GROWTH dividend per share

89,5 CENTS property assets R110,0bn

RSA expenses under control 27.8% FY15

26.5% COST-TO-INCOME

gearing levels remain conservative

decreased from 33.2% FY15 32.4% LTV

28.7% growth in gross revenue

RSA vacancies down from 5.7% FY15 – strong focus on

tenant retention

4.9% VACANCIES GOZ 10.1% PROPERTY

VALUE INCREASE

5


Largest company

on the JSE

INTRODUCTION TO GROWTHPOINT

Internally managed company

Ownership in

Growthpoint

Australia

South African, primary listed

REIT

Inclusion in

FTSE/JSE Responsible Investment

Index*

Ownership in

V&A Waterfront

* Previously JSE SRI Index.

32nd 673 STAFF 65% #1 7th

YEAR 50%

R63,5bnRRRRRRRRRRRRRRRRRRRRRRRRRR66666666666666666666666666633333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,5555555555555555555555555bbbbbbbbbbbbbbbbbbbbbbbbbb nnnnnnnnnnnnnnnnnnnnnnnnnn

Market capitalisation


Notes:

8


GROWTH IN TANGIBLE ASSETS AND MARKET CAPITALISATION

0

500

1,000

1,500

2,000

2,500

3,000

0

20

40

60

80

100

120

FY11 HY12 FY12 HY13 FY13 HY14 FY14 HY15 FY15 HY16

Cents Rbn

Tangible assets (Rbn) Market cap (Rbn) Share price (cents) NTAV per share (cents)

7


GROWTH IN DIVIDEND PER SHARE (CENTS)

FY12 FY13 FY14 FY15 FY16

Interim dividend Special dividend Final dividend

GROWTH 7.2%

GROWTH 8.3%

GROWTH 7.5%

GROWTH 6.0%

7.2%

7.2%

8.5%

8.0%

7.5%

7.5%

Freestone, Sandton

139,0

161,3 149,0

173,4

71,2

82,8 76,3

44,5

67,8 78,5

72,7 84,4

44,5

6.0% 89,5


Notes:

FINANCIAL REVIEW

Alice Lane, Sandton

9


LONG BOND YIELD VS. GRT FORWARD YIELD

4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

01/02/2011 01/08/2011 01/02/2012 01/08/2012 01/02/2013 01/08/2013 01/02/2014 01/08/2014 01/02/2015 01/08/2015 01/02/2016

Long Bond GRT Forward Yield

Feb 2011 Aug 2011 Feb 2012 Aug 2012 Feb 2013 Aug 2013 Feb 2014 Aug 2014 Feb 2015 Aug 2015 Feb 2016


Notes:

12


CONSOLIDATED DISTRIBUTION CALCULATION HY16

Rm HY15

Rm INCREASE / (DECREASE)

Gross property income 4 689 3 643 28.7% RSA 3 747 2 725 37.5% GOZ 942 918 2.6%

Property expenses (998) (756) 32.0% RSA (882) (648) 36.1% GOZ (116) (108) 7.4%

Net property income 3 691 2 887 27.8% Other operating expenses (153) (155) (1.3%) RSA (111) (111) - GOZ (42) (44) (4.5%)

Net property income after operating expenses 3 538 2 732 29.5% Finance costs (1 217) (1 016) 19.8% RSA (1 005) (777) 29.3% GOZ (212) (239) (11.3%)

Finance income 340 450 (24.4%) Investment income from V&A Waterfront 198 172 15.1% Other finance income(1) 142 278 (48.9%)

Adjustment for NCI, foreign exchange profit and normal taxation (217) (199) 9.0%

Distributable profit 2 444 1 967 24.3% Dividend for the period 2 444 1 967 24.3%

1. Includes R13m (HY15: R26m) dividends received on treasury shares held, R10m for the distribution from Stenham (HY15: R170m from Acucap & Sycom prior to the acquisition of the remaining interest on 1 April 2015) and R19m interest on V&A Waterfront development funding.

* Average exchange rate at R9.84/AUD (HY15: R9.78/AUD) for GOZ.

11


157 172

198

232

334

361

170

10

HY14 HY15 HY16

RSA V&A Waterfront GOZ Listed Investments

CONTRIBUTION TO DISTRIBUTABLE INCOME

GROWTH 29.4%

GROWTH 24.3%

Nestlé, Cape Town

1 131 1 291

R1 520m

R1 967m

R2 444m

1 875 10.3%

74.4%

15.3% 8.8%

65.6%

17.0%

8.6% 8.1%

76.7%

14.8%

0.4%


Notes:

14


CONSOLIDATED BALANCE SHEET (EXTRACTS)

HY16 Rm

FY15 Rm

HY15 Rm

HY16-FY15 INCREASE/ (DECREASE)

Property portfolio (1) 103 014 93 574 72 030 10.1%

RSA 73 655 71 550 51 369 2.9%

GOZ (2) 29 359 22 024 20 661 33.3%

50% Investment in V&A Waterfront 6 042 6 047 5 572 (0.1%)

Other property-related investments 452 742 5 262 (39.1%)

Nominal borrowings (3) 36 182 33 811 24 926 7.0%

RSA (4) 24 758 25 444 17 188 (2.7%)

GOZ (2) 11 424 8 367 7 738 36.5%

Shareholders interest 67 799 63 369 52 927 7.0%

1. Includes R394m of properties classified as held for sale (FY15 - R539m, HY15 - R465m). 2. Closing exchange rate at R11.43/AUD (FY15 - R9.40/AUD, HY15 - R9.49/AUD). 3. Excludes fair value adjustments. 4. The total value for HY16 excludes the deferred payments of R158m on the Samrand land purchased. The two outstanding payments are due Sept 2016 and Sept 2017.

13


EXPENSE TO INCOME RATIOS

23.8% 24.0% 23.5%

4.1% 3.8% 3.0%

HY15 FY15 HY16Operating Expense Ratio Property Expense Ratio

28.5% 27.8% 28.1%

2.7% 2.9% 2.4%


11.8% 11.6% 12.3%

4.8% 4.4% 4.5%


SOUTH AFRICA V&A WATERFRONT GOZ

27.8% 27.9% 26.5% 30.7% 31.2% 30.5% 16.0% 16.6% 16.8%


Notes:

16


RSA CAPITAL MANAGEMENT

FOR RSA HY16 FY15 Unutilised committed facilities (Rbn) 4,9 4,1

Facilities earmarked for guarantees (Rbn) 0,1 0,3

Weighted average term of liabilities (years) 2.7 2.9

Weighted average term of fixed interest rate profile (years) 3.4 3.5

Weighted average interest rate (%) 9.0 8.9

% debt at fixed interest rate (incl. forward starting swaps) 84.3 76.0

Unencumbered assets (incl. V&A Waterfront and listed investments) (Rbn) 36,0 35,1

Unsecured debt (Rbn) 7,2 7,5

R502,8m raised via equity (incl. DRIP)

Investment Activities

44 on Grand Central, Midrand

MOODY’s OUTLOOK changed in Dec 2015

from stable to negative due to change in Sovereign outlook

CAPITAL MANAGEMENT

Allen Road, Germiston


Notes:

18


LOAN TO VALUE AND INTEREST COVER RATIOS

26.9%

32.1% 30.5%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

HY15 FY15 HY16

LTV¹ Interest cover ratio (incl V&A)

30.8% 36.2% 36.8% 37.4%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

HY15 FY15 HY16

LTV¹ Interest cover ratio

29.2%

33.2% 32.4%

0

1

2

3

4

5

6

7

0%

10%

20%

30%

40%

HY15 FY15 HY16

LTV¹ Interest cover ratio

SOUTH AFRICA GOZ (2) GROUP

1. Nominal value of interest-bearing borrowings (net of cash), divided by the fair value of property assets, including investment property held for sale. For RSA and GROUP the 50% equity investment in V&A Waterfront and other equity-accounted investments were included in the fair value of property assets.

2. Calculated in Rands.

3.4x 3.3x 3.7x 3.3x 3.4x 3.3x 3.8x 3.4x 3.7x

LTV(1) LTV(1) LTV(1)

17


RSA CAPITAL MANAGEMENT (CONTINUED)

GROWTHPOINT

Banking relationships

Volatile economic environment resulted in more reliance on bank funding

Banks have expressed interest in supporting good quality borrowers

Increasing interest rate environment

Well positioned due to our fixed interest rate profile

Corporate bonds

Successfully re-financed R500m unsecured corporate bond for 3 years

Lakeside, Centurion


Notes:

PORTFOLIO UPDATE

Eastgate, Sandton

19


8 855

15 852 15 781 1 450

2 053 1 803

3 081

4 480 4 115

3 409

2 659 2 659

393

400 400

HY15 FY15 HY16Secured bank debt Secured institutional financier Unsecured bank debt and institutional financier Corporate bonds Commercial paper

(1)

RSA DIVERSIFIED BORROWINGS — NOMINAL VALUE

Debt capital market 12.0%

R25 444m R17 188m R24 758m

Traditional bank debt

88.0%

Unsecured 29.6%

Secured 70.4%



77.9%

Unsecured 40.0%

Secured 60.0%



87.6%

Unsecured 29.0%

Secured 71.0%

1. The total value for HY16 excludes the deferred payments of R158m on the Samrand land purchased. The two outstanding payments are due Sept 2016 and Sept 2017.


Notes:

PORTFOLIO UPDATE — SOUTH AFRICA

Constantia Village, Cape Town

21


CONSOLIDATED PORTFOLIO OVERVIEW

NET PROPERTY INCOME PROPERTY PORTFOLIO (by value)

RSA 73.4% V&A Waterfront 5.4% GOZ 21.2%

RSA 66.9% V&A Waterfront 6.4% GOZ 26.7%

The Oval, Cape Town


Notes:

24

South Africa


NET PROPERTY INCOME ANALYSIS

HY16 Rm

HY15 Rm

INCREASE

Gross property revenue 3 747 2 725 37.5% Retail 1 437 872 64.8% Office 1 710 1 290 32.6% Industrial 600 563 6.6%

Property expenses (882) (648) 36.1% Retail (357) (237) 50.6% Office (394) (292) 34.9% Industrial (131) (119) 10.1%

Net property income 2 865 2 077 37.9% Adjustments (935) (241)

Acquisitions and developments (105) (81) Acucap & Sycom acquisitions (693) - Ellerines (5) (7) Disposals (5) (30) Investec rent (127) (123)

Adjusted “like-for-like” net property income 1 930 1 836 5.1% Retail 671 630 6.5% Office 858 812 5.7% Industrial 401 394 1.8%

23

South Africa


RSA PORTFOLIO OVERVIEW (EXCL. V&A)

HY14 HY15 HY16Retail Office Industrial

24.0%

41.3%

34.7%

16.4%

45.9%

37.7%

21.4%

48.0%

30.6%

HY15 FY15 HY16Retail Office Industrial

52.9%

37.6%

9.5%

48.6%

39.1%

12.3%

48.6%

39.1%

12.3%

HY15 FY15 HY16Retail Office Industrial

18.9%

49.4%

31.7%

15.3%

45.5%

39.2%

14.6%

46.0%

39.4%

NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE

R2 077m R1 716m R2 865m 471 431 473 R71 550m R51 369m R73 655m


Notes:

26

South Africa


RETAIL

HY16 HY15

Size of portfolio Rm Rm

Net property income 1 080 635

Portfolio value 28 912 16 310

Vacancy % %

Total portfolio 2.5 4.4

Arrears Rm Rm

Total portfolio 38,6 26,1

Bad debt provision 14,3 10,3

Renewals % %

Renewal success rate 91.6 84.4

Weighted average renewal growth 5.8 7.4

Increased R445m, mainly due to the Acucap portfolio GRT “like-for-like” portfolio increased 6.5%

NET PROPERTY INCOME

Increased due to the Acucap acquisition Arrears as a % of monthly collectables improved to 10.88% vs. 11.80% HY15 Trading arrears excluding legal arrears and outstanding deposits is 5% of total collections

ARREARS

Improved to 2.5% due to ongoing leasing activity Core retail vacancy 1.5% VACANCIES

Western Cape trading densities increased by 8% on an annualised basis to December 2015 Trading density growth across the portfolio was disappointing with average growth of 4.0% to R2 700/m2 per monthxcluding 3 centres competing with new developments,

average portfolio trading density growth was 6.3%

TRADING

Renewal success rate improved to 91.6% Renewal growth decreased to 5.8% LEASING

25

South Africa


KEY PERFORMANCE INDICATORS

HY16 FY15 HY15

Vacancies (%) 4.9 5.7 6.4

Total arrears (Rm) 68,2 63,7 48,4

Provision for bad debts (B/S) (Rm) 26,5 25,9 24,3

Bad debts (I/S) (Rm) 7,2 15,1 11,8

Average in force escalations (%) 8.1 7.7 8.0

Renewal success rate (%) 69.0 65.5 65.2

Weighted average renewal growth (%) 1.6 4.1 5.4

Weighted average future escalations on renewals (%) 7.7 8.3 8.1

Number of employees 673 700 530

Net property income per employee (R) 4 257 058 6 405 714 3 922 642

Deloitte, Umhlanga


Notes:

28

South Africa


INDUSTRIAL

HY16 HY15


Net property income 469 444


Vacancy % %


Arrears Rm Rm



Renewals % %


Weighted average renewal growth 0.8 4.1

NET PROPERTY INCOME

NPI increased 5.6% despite difficult trading conditions for our clients GRT “like-for-like” portfolio, excluding 3 properties of just under 40 000m² increased 5.7%

DEVELOPMENTSGood development pipeline with consistent enquiries 141 475m² currently under development across 9 properties

LEASING

The renewal success rate and rental growth remain under pressure as a result of the tough SA macro environment HY16 was impacted by the expiry of a 47 000 m² facility in Isando which has subsequently been relet

VACANCIESImproved, with tenant retention and aggressive letting being the key focus Ellerines in PE and Midas in JHB continue to be difficult to let

ARREARS Decreased, mainly as a result of a strong client focus with a view to pre-empting any tenant defaults

27

South Africa


OFFICE

HY16 HY15


Net property income 1 316 998


Vacancy % %


Arrears Rm Rm



Renewals % %


Weighted average renewal growth (4.3) 4.3

NET PROPERTY INCOME

NPI and portfolio value increased 31.9% and 32.1%, respectively, mainly due to the acquisition of Acucap portfolio

DEVELOPMENTSJust under 130 000m2 of developments in progress during the period, with over 107 000m2 in joint venture Located in Sandton, Century City, Umhlanga and Bryanston, with 91.7% of this space pre-let

LEASINGRenewal success rate increased to 64.6% Negative renewal growth of 4.3% impacted by negative reversion on one 7 year renewal of 9 155m2

VACANCIES Reported at 7.6% (SAPOA vacancies for Q4 2015 10.5%)Vacancies on the Acucap portfolio at 5.4%

ARREARSGrew to 5.5% of collectables mainly as a result of the Acucap acquisition Arrears for the core portfolio (excluding Acucap) are 4.5%


Notes:

PORTFOLIO UPDATE — V&A WATERFRONT

V&A Waterfront, Cape Town

29

South Africa


PROPERTY INVESTMENT ACTIVITIES

R576,0m R625,8m R1,2bn R2,0bn

AcquisitionsAAAAAAAAAAAAAAAAAAAAAAAAAccccccccccccccccccccccccqqqqqqqqqqqqqqqqqqqqqqqquuuuuuuuuuuuuuuuuuuuuiiiiiiiiiiiiiiiiiiiiiiiiissssssssssssssssssssssssiiiiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttiiiiiiiiiiiiiiiiiiiiiioooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnsssssssssssssssssssssss DisposalsDDDDDDDDDDDDDDDDDDDDDDDiiiiiiiiiiiiiiiiiiiiissssssssssssssssssssssssppppppppppppppppppppppoooooooooooooooooooooosssssssssssssssssssssssaaaaaaaaaaaaaaaaaaaaaaaalllllllllllll lllllllllllllssssssssssssssssssssssssDevelopmentsDDDDDDDDDDDDDDDDDDDDDDDDeeeeeeeeeeeeeeeeeeeeeeeeevvvvvvvvvvvvvvvvvvvvvvvvveeeeeeeeeeeeeeeeeeeeeeeeelllllllllllloooooooooooooooooooooooppppppppppppppppppppppppppmmmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnnnntttttttttttttttttttttDDDDDDDDDDDDDDDDDDDeeeeeeeeeeeeeeeeevvvvvvvvveeeeeeeeeeeeeeeeeeellllllooooooooooooooooooopppppppppppppppppppppmmmmmmmeeeeeeeeeeeeeeeeeeennnnnttttttttt ttttttssssssssssssssssssssssssstttttttttttsssssssssssssssssss

& Capital Deeeeeeeeeeevvvvvvveeeeeeeeelllllllooooooooopppppppppmmmmmmmmmeeeeeeeennnnnnnttttttttttttsssssssss

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&&&&&& CCCCCaaaaaaaaaaaappppppppiiiiittttttttaaaaaaaaaaaalllllll EEEEEEEEEEExxxxxxxxxxxxxxxxxxxxxppppppppppppppppppppeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnddddddddddddddddddddiiiiittttttttttttttttuuuuuuuuuuuuuuuuuurrrrrrrEEEEEEEEEEEEEEEEEEEExxxxxxxxxxxxxxxxxxxxxppppppppppppppppppppeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnddddddddddddddddddddddiiiiiiiiiiiiitttttttttttttttuuuuuuuuuuuuuurrrrrrrrrrrrrrEEEEEE ddddddddddddddddddiiiiiiiiiiiiiiittttttttttttttt reeeeeeeeeeeeeeeeeeeeeeeerreeeeeeeeeeeeeeeeeeee

CommitmentsCCCCCCCCCCCCCCCCCCCCCCCCCoooooooooooooooooooooooooooommmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmiiiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttmmmmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnntttttttttttttttttttt ttttttttttttttttssssssssssssssssssssssss


Notes:

32

V&A Waterfront


KEY PERFORMANCE INDICATORS (50%)

HY16 FY15 HY15

Vacancies (%) 1.3 2.6 1.0



Bad debts (I/S) (Rm) - 2,0 (0,3)

Average in force escalations (%) 8.0 8.3 8.1

Renewal success rate (%) 89.6 92.7 90.2



Number of employees (100%) 187 182 175


V&A Waterfront, Cape Town

31

V&A Waterfront


V&A WATERFRONT PORTFOLIO OVERVIEW (50%)

HY14 HY15 HY16Retail Office Fishing & Industrial Hotel & Residential

21.4%

48.1%

30.5%

HY15 FY15 HY16Retail Office Fishing & Industrial Hotel & Residential Bulk

NET PROPERTY INCOME PROPERTY PORTFOLIO VALUE

R188m R172m R211m R6 761m R6 122m R7 027m

12.8%

23.9%

54.3%

9.0% 12.2% 9.3%

54.1%

24.4%

17.0%

51.9%

21.2%

9.9% 8.2%

19.6%

6.5% 11.9%

53.8%

11.6%

53.9%

20.9%

6.1%

7.5% 11.1%

52.4%

7.3%

23.3%

5.9%


Notes:

34

V&A Waterfront


OPERATIONAL REVIEW

OFFICE

FISHING AND INDUSTRIAL

11 GROWTH IN GRGRGRGRGRGRGRGRGRGRGGRGG OWOWOWOWOWOWOWOWOWOWOWOWOWWWTHTHTHTHTHTHTHHTHTHTTH IIIIINNNNNNNNNNN

OFFICE GGGRRRRROWOWOOOOWOWOWTHTHHHHTTH IIIINNNNN

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OFOOOOOOFOO FIFIFICECECECECCCECE OFOFOOOOOFOOFOOO FEFEFEFEFEEEERIRRRRRIRIRIR NGNGNGNGNNNGOFOOFOOOOFOFOFOOFOOOFO FEFEFEFEFEFEFFEERIRRIRIRRIRRIRRRIRR NGNGNNNGNGNGNNGN GGGGGGGGGGGGGGGGGGGGGGGGG

18 000m2 of office space earmarked for PwC, Virgin Active and Werksmans to take occupancy in the second half of 2016 The Canal District welcomes British American Tobacco (BAT) as its flagship tenant occupying 7 000m² ZEITZ MOCAA gains momentum with the second gala event hosted, raising initial donor awareness and funding Amway plans are being worked up

11 VACANCIESVAVAVAVAVAVAVAVAVAVVAVAVAVACACACACACACACACACACACACACCAC NCNCNCNCNCNCCCNCNCNCCCIEIIEIEEEIEEE EEEEESSSSSSSSSSSSS 2.3% Well below national benchmark

11 LEASINGLELELLELELEELELLEL ASASASASASASASASASASASASA INNININININNINGGGGGGGGGGG GGGGGGGGGGGGGGStrong average renewal growth and renewal success rates; 8% and 93% respectively

DOCKSIDE DODODODODODODODODODODOOODOCKCKCKCKCKCKCKCKCKCKKCCKCCKSISISISSSISISISSSS DEDEDDDEDDEDEDDDDEDPRECINCTDODODODODOOCKCKCKCCKCCKKSISSSISSSSIS DEDDEDE PRPPPPPRPRRPRPRRECECECECCCCCCCECECININNNINNNNCTCCCCCCCCCPRPRPRPRPRPRPRPRRPRPRPRPRRECECCECECECECCCCECECECININININININNNINCTCTCCCTCCTCCCCTCC

DEEEEEE TTTTTTTTTTT11

The V&A Waterfront took over management of the cruise liner terminal in December 2015; building to be redesigned and some 28 000m² multi-use to be let To date some 24 000 passengers and 18 vessels have been through the terminal

11 STABLE STSTSTSTSTSTSSTSTSTSTS ABABABABABAABABABABABAABBLELLELELEELELEELEFISHING STSSSTSTSSTSTTSTTTABAABABABBAAABABLELLLEEELELE FFIISHSSSHSHSHSHSSSS ININNNNNNGGGGGGGGGGGGGGGFIFIFIFFIFFIFFIF SHSHSHSHSHSSHSHSHHSHINININNINNNNGGGGGGGGGGGG

INDUSTRYFFFIFIISHSSSSSSSHHSHININNINNING GGGGGGG

ININNNNININNDUDUDUDUUDUDUDDUUDUDDUSTSTSSSTSSTSSSS RRRRRRINNININININNNNDUDDUDUDUDDDDDUDUDUD STSTSTSSSSTSTSTSTSSS RRRRRRRRRRRRRRR G RYRYRYYYYRYRYRYRYYYRYRYYRYYY

Long term leases in place

OFFICE

11 WORKSHOP 17WOWOWOWOWOWOWOWOWOWOOWOWOWOWWW RKRKRKRKRKRKRKRKRKRKRKRKRKKR SHSHSHSHSHSHSHSHSHSHHSHSHHOPOPOPOPOPOPOPOPOPOPOPOO 11111111111 7777777777777

Co-working and meeting space Trading for just under 6 months At 100% occupancy level Continued demand for new space with a waiting list of new tenants

TO LET

33

V&A Waterfront


OPERATIONAL REVIEW

RETAIL

SALES SASASASASASASASASASASASASSAS LELELELELELELEELELESSSSSSSSSSSSSGROWTH

SASASASASSSAASASASAAALELELLEEEELES SSSSSSSSGRGRGRGRGGGRGGRGRGRG OWOWOWWOWOOWOWOWOWOWOWWTTHHGRGRGRGRGRGRGRGRGRGRGRGGROWOWOWOWOWOWOWOWOWOWWOOWTTHTHTHTTT HHHHHHHHHHHHHHH11

Continued double digit year on year sales growth at 13% Trading density increased by 11% for the period Benefit seen from weaker Rand and new retail offerings

11 VACANCIESVAVAVAVAVAVAVAVAVAVAVAAVACACACACACACACACACACACACCAANCNCNCNCNCNCNCNCCCCNCCIEIEIEIEIEEEEEE EEEEESSSSSSSSSSSS Remain at 0% TO LET

11 23,5m232323232323233232323233232 ,5,555,5,5,5,55,5,555mmmmmmmmm mmmmmmmmmmmmVISITORS2322323332232 ,5,5,,5,5,5,55,,55,, mmmmmmm

VIVVVIVVVIVV SISSISISISSSSSS TOTOTOTOOTOTOTOOTOOORRRRRVIVIVVVVIVIVIVIVIV SISISSSISSSISSSIS TOTOTOTOTOTOOOTOOOTOORRRRRRRRRRRRRR mRSRSRSSSSSSSSSRSRSSSSSSSSSRSSS

Consistent footfall Record number of 3 million visitors in December New Years Eve event welcomed over 80 000 patrons for the evening

11 DEVELOPMENTDEDEDEDEDDDEDEDEDEDEDD VEVEVEVEVEVVEVEVVVELOOLOLOLLOLOLOOOLOLOOLOPMPMPMPMPMPMPMPMPMPMPMMMMENENENEENENENNENENNNTTT TTTTTTTTTAdditional parking for the Victoria Wharf district is being considered before the approved additional 15 000m² expansion to the mall

ENHANCED ENEENENENNENENENENNENHAHAHAHAHHAHAHAHAHAHAHAAAANCNCNCNCNCNCNCNCNCNCNCNCCEDEDEDEEDEDEDEDEDEDEDDTENANT MIXENENNNEE HAHAAHHAAHAAANCNNCEDEDEDE

TETETEEEEET NANANANANANANAAAAAANTNNTNNTNN MMMMMMMMMMMMMIIITETETETETEETETETEENANAANANANNANAANANAAANTNTNTNTNNTNTTNTNT MMMMMMMMMMMMMIIIIII DD XXXXXXXXXXXXXXXXXXXXXXXX11

H&M traded since October 2015, currently top 5 store globally in terms of unit sales New Western Cape retailers, exclusive to the V&A Waterfront, include Versace, Tom Ford, Kiehls and Habitat New food offerings include Dalliance, Ranoushe and Cinnabon

11 WATERSHED WAWAWAWAWAWAWAWAWWAWAWAWAWW TETETETETETETETEEEEERSRSRSRSRSRSRSRSSRSRSSSRSSSHEHEHEHEHEHEEHEEHEDDDDDDDDDDDDDD

CRAFT & WAWAWAWAWAWAWATETETEERSRRRRSSSHEHEHEHEHEDDDDDD

CRCRCRCRCRCCRCCRCRC AFAAAAFAAAAA TT &&&&&&&&&&&&CRCRCRCRCCRCCRCRCRCCRCRCCRAFAFAFAAFAFAFAAAAFAFTTTTTTTT &&&&&&&&&&&&&&&DESIGN

CRCRCRCCRCCCRRCRRRAFAAFAFAAAAAA T TTTT &&&&&&&&&&&DEDEDEDEDEDDDDEDDEDDEDESISIISISSSSSSSSS GGGGGGGGGGGGDEDEDEDEDEDDEDEDEDESISISISISISISSSSSSIIS GGGGGGGGGGGGGG

&&& &&&&&&&&&&&NNNNNNNNNNNNNNNN

Continues to showcase strength of small businesses 95% retention rate after first renewals Retail sales growth in excess of 300%


Notes:

36

V&A Waterfront



- - R266,1m R705,8m

AcquisitionsAAAAAAAAAAAAAAAAAAAAAAAAccccccccccccccccccccccccqqqqqqqqqqqqqqqqqqqqqqqqqquuuuuuuuuuuuuuuuuuuuuuuuiiiiiiiiiiiiiiiiiiiiiiissssssssssssssssssssssssiiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttttttttiiiiiiiiiiiiiiiiiiiioooooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnsssssssssssssssssssssss DisposalsDDDDDDDDDDDDDDDDDDDDDDDiiiiiiiiiiiiiiiiiiiiiiissssssssssssssssssssssspppppppppppppppppppppppppppoooooooooooooooooooooooooosssssssssssssssssssssssssaaaaaaaaaaaaaaaaaaaaaaallllllllll llllllllllllllsssssssssssssssssssssssssDevelopmentsDDDDDDDDDDDDDDDDDDDDDDDeeeeeeeeeeeeeeeeeeeeeeeeevvvvvvvvvvvvvvvvvvvveeeeeeeeeeeeeeeeeeeeeeeeeellllllllllloooooooooooooooooooooooooppppppppppppppppppppppmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnntttttttttttttttttttDDDDDDDDDDDDDDDDDDDeeeeeeeeeeeeeeeevvvvvvvveeeeeeeeeeeeeeellllllooooooooooooooooopppppppppppppppmmmmmmmeeeeeeeeeeeeeeeeeennnnnttttttttt ttttttsssssssssssssssssssssttttttttttttsssssssssssssssssssss

& Capital Deeeeeeeeevvvvvvveeeeeeeelllllllooooooooooppppppppmmmmmmmmmmmeeeeeeeeeennnnnnnnttttttttttsssssssss

&&&&&&&&&&&&&&&&&&&&& CCCCCCCCCCCCCCCCCCCCCaaaaaaaaaaaaaaaaaaaaaaaappppppppppppppppppiiiitttttttttttttaaaaaaaaaaaaaaaaaaaaaalllllll&&&&&&&&&&&&&&&&&&&&&&&&& CCCCCCCCCCCCCCCCCCCaaaaaaaaaaaaaaaaaaaaappppppppppppppppppppiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttaaaaaaaaaaaaaaaaaaallllllllllllllExpenditure

&&&&&& CCCCCCaaaaaaaaaaapppppppppiiiiitttttttttaaaaaaaaaaaaallllllll EEEEEEEEEEExxxxxxxxxxxxxxxxxxxxppppppppppppppppppppppeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnddddddddddddddddddddiiiiittttttttttttttuuuuuuuuuuuuuuuuuuuurrrrEEEEEEEEEEEEEEEEEEEEExxxxxxxxxxxxxxxxxxxxppppppppppppppppppeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnnndddddddddddddddddddddiiiiiiiiiiiiiiitttttttttttttttttuuuuuuuuuuuuuuurrrrrrrrrrrrrrrrrrEEEEEEE dddddddddddddddiiiiiiiiiiiiiiiiitttttttttttttt reeeeeeeeeeeeeeeeeeeeerrreeeeeeeeeeeeeeeeeeeee

CommitmentsCCCCCCCCCCCCCCCCCCCCCCCCCCooooooooooooooooooooooooommmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmiiiiiiiiiiiiiiiiiiiiiiittttttttttttttttttttttttmmmmmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnnnnnttttttttttttttttttttttt tttttttttttttsssssssssssssssssssssss

35

V&A Waterfront


OPERATIONAL REVIEW

HOTEL RESIDENTIAL

TRADING TRTRTRTRTRTRTRTRTRRTRRADADADADADADADADADADADADADA ININIINININNNNNNGGGGGGGGGGGGGGLEVELS

TRTRRTRRADAADADADAAAA ININNNI GGGGGGGGGLELLELELELEEVEVEVEVEVEVEVEVVVELLLLLLLLELELELELEEELEEVEVEVEVEVEVEVVEVEVVVVVV LLLLLL

NNNNG GGGGGGGGLSSSSLSSLSSLSSLSSSSSSSSSSSSSS11

Benchmark comparatives indicate that the V&A Waterfront hotels trade at approx. 20% premium levels Hotel occupancies and average room rates improved some 7% year on year

11 DEVELOPMENTDEDEDEDEDEDEDEDEDEDEDDD VEVEVEVEVEVEVEVEVEVEVELOLOLOLOLOLOOLOLOLOLOOOOPMPMPMPMPMPMPMPMPMPMPMMMMENENENENENENNENENENE TTTTTTT The first Radisson Red in South Africa on track to open early 2017

11 BREAKWATERBRBRBRBRBRBRBRBRBRBRBB EAEAEAAEAEAEAEAEAAEAAAAAAKWKWKWKWKWKWKWKWKWKWKWKWKWAATATATATATATAATAAATA EEEEEEEE RRRRRRRRRRRTrading for 10 months with favourable uptake Of the 150 units, 83% let

11 PORTSEDGEPOPOPOPOPOPOPOPOPOPOPOPOPPORTRTRTRTRTRTRTRTRRRTSESESESESESESSSESESESESS DGDGDGDGDGDGDGDGDGDGDGDG GGGGEEEEEEEEEEE Traded for just under 2 years Renewals at expected levels

DEVELOPMENTDEDEDEDEDEDEDEDEDEDEDEDD VEVEVEVEVEVEVEVEVEVVEVELOLOLOLOLOLOLOOLOLOOOOOOPMPMPMPMPMPMPMPMPMPMPMPMMENENEENEENNNENEENENE TTTTTTTTT11

Silo No. 3 residential apartments launched in November Of the 77 apartments 60% were pre-sold with a total sales value in excess of R400m There remains a strong demand for V&A Waterfront apartments


Notes:

38

GOZ


GOZ PORTFOLIO OVERVIEW

HY14 HY15 HY16

Office Industrial

HY15 FY15 HY16

Office Industrial

HY15 FY15 HY16

Office Industrial

NET PROPERTY INCOME NUMBER OF PROPERTIES PROPERTY PORTFOLIO VALUE

R810m R658m R826m 53 51 57 R22 024m R20 661m R29 359m

47.6%

50.6%

47.1%

52.4%

49.4%

52.9%

33.3%

67.9%

32.1%

66.7%

33.3%

66.7%

50.0%

49.8%

50.2%

50.0%

52.4%

47.6%

PORTFOLIO UPDATE — AUSTRALIA (GOZ)

Building C, 219-247 Pacific Highway, Artarmon, NSW


Notes:

40

GOZ


OPERATIONAL REVIEW

PRUDENT PRPRPPRPRPRPRPRPRPRPRRPRRPRPRP UDUDUDUDUDUDUDUDUDDUDUDDDDENEENNENNENNENENENTTTTTTTCAPITAL PPRPRRRPRPRRUDUUDDUDUDENEENNNNNTT TCACACACACACAACACACAAACACCAPIPIPIPPPIP TATATTATATATATATATATAATAALLLLLLLCACACACACACCACACACACACCACACACAPIPPPIPIPPIPIPIPP TATAATATATAATATTATAALLLLLL

MANAGEMENTCACACACACCCCAAACAAAPPPIPIIPITATATTAAATATATATATAL LLLLLL L

MAMAMAMAMAMAMAMAMAMAMAMAMMAMAMMAM NAAANANANANAANANANAAAGEGGEGEGEGEGEGEGEGEMEMEMMMMEMEMEMEMEMMMM NTNNNNNNNNAAAAAAAAAAAANAAANANNANANAANANAANAAAGEGEGEGGEGEGEGEGEGEGGEGGEG MEMEMMMMMEMEEEMEEMMEMMMM NTNNNNNTNNTNNNT TTTTTTTTT

11

LTV of 37.4% at HY16

81% debt hedged at HY16 with an average maturity of 3.9 years

Weighted average maturity of debt 4.7 years at HY16

AUD250m DCM issuance for 7 years at an all in cost of 4.46% pa

LEASINGLELELELELELELEELEEASAASASASASASASASASSASSSASASAASININININNINNININNGGGGGGGGG GGGGGGGGGGGGG85% tenant retention (by income) Over 38 825m² of new and renewed leases undertaken in HY16

SHAREHOLDERSHSHSHSSHSHSHSHHSHSHSSHHSSS ARARARARARARARARARARARAARAA EHEHEHEHEHEHEHEHEHEHEE OLOLOLOOOLOLOLOLOLOLOLOOOO DEDEDEDEDEDEDEDEDEDEDDDDERRRRRRRRRRRRRETURN

HHHHARARAARARARRARAARAA EHEHEHEEEHHEHHHOLOOOLOLOOLOOLLOLDEDEDEDDDDEEREREREREREREEETUTUTUTUUUTUUUUURRRRRRRRERERERERERERERERERERERRETUTTUTTUTUUTUTTUURRRRRRRRRRRRRR

EEEELLLLLDEDDEDEDDDDEDEENNNNNNNNNNNNNNNNNNNNNN

11

16.7% total security holder return for 12 months to 31 December 2015

HY16 distribution guidance of AUD10.2 cents achieved, AUD20.5 cents forecast or FY16

4.8% increase in NTAV per stapled security

11 GROWING GRGRGRGRGRGRGRGRGRGGRGRGRGRGGGG OWOWOWOWOWOWWOWOWOWOWOWOWOWWOWWWOWO ININIININNNIINNINNNGGGGGGGGGGGGGGGGGPORTFOLIOGRGRGRGRGGGGGRGRGRROWOWOWOOOOOWOWWOWWWININIINNNNNG GGGGGGGGG

POPOPOPOPPOPPOPOPOPOOOOOOORTRTRTRTRRTR FOFOFOFOOOOOOOFOOLILLLILILLIOOOOOOOOOPOPPOPOPOPOPOOPPOPOPOOPOOOP RTRTRTRTRRTRRTRTRTRTRRRR FOFOFOFOFOFOFOFOFOFOOOOOLILILILLILILILLIIOOOOOOOOO GGG GOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

AUD122m property acquisitions during HY16 at an average yield of 7%

3.25% uplift in like-for-like property values

11 EXCELLENT EXEXEXEXXXEXXEXEXXEXXEEXCECECECECECCECCCECECCECEC LLLLLLLLLLLLLLLLLLENEENENNNENENENEENTTTTTPROPERTY EXEXEXEXEXEXXXXEXCECECECCECECEELLLLLLLLLLL ENENENENENNNNT TTTPRPRPRPRPPPPPRRROPOPOPOOPOPOPPOPOPOOOO EREERERERRERRERTYTYTYTYTYYPRPRPRPRPRPPRPRRRPRPRPRRRRP OPOOPOPOPOPOPOPOPOOPOPOPOOO ERERERRERRERERRRERRTYTYTTYYTYYYYTYYYYYYY

FUNDAMENTALSPRPRPRRPRRPROPOPOPOOOOOOPO EREEREREERERRRE TYTYTTYTY

FUFUFUFUFUFUFUFUFUFUUFUNDNDDNDNDDNDDDNNDNNDDDAMAMAAMAMAMAMAMAMAMAMAMAAMA ENNENENEENENENENEE TATATATATATATATATATATAAATALLLLLLLLLLUUUUUUUUUUUNDNDNDNDNDNDNDNDNDNNDNN AMAMAMAMAMMAMAMAMAMAMMAMAMA ENENENENENENNENNENEEE TATATATAATATATAATAATAAAALLLLLL LSLSSSSLSLSLSLSSSSLSLSSSSSSSSSSSS

Quality tenants, diversified across office and industrial sectors, located in every Australian state and the ACT 6.6 years WALE, 3.0% vacancy and limited lease expiry risk in the short term

39

GOZ


KEY PERFORMANCE INDICATORS

HY16 FY15 HY15

Vacancies (%) 3.0 3.0 2.0



Renewal success rate (%) 85.1 32.1 -



Number of employees 15 14 13


51-65 Lenore Drive, Erskine Park, NSW

* Measurements and ratios are based on income and not GLA (when compared to RSA).


Notes:

CONCLUSION

Inanda Greens, Sandton

41

GOZ



R1,3bn - R335,0m R742,0m

AcquisitionsAAAAAAAAAAAAAAAAAAAAAAAAAccccccccccccccccccccccccqqqqqqqqqqqqqqqqqqqqqqqquuuuuuuuuuuuuuuuuuuuuiiiiiiiiiiiiiiiiiiiiiiiiissssssssssssssssssssssssiiiiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttiiiiiiiiiiiiiiiiiiiiiioooooooooooooooooooooooonnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnsssssssssssssssssssssss DisposalsDDDDDDDDDDDDDDDDDDDDDDDiiiiiiiiiiiiiiiiiiiiissssssssssssssssssssssssppppppppppppppppppppppoooooooooooooooooooooosssssssssssssssssssssssaaaaaaaaaaaaaaaaaaaaaaaalllllllllllll lllllllllllllssssssssssssssssssssssssDevelopmentsDDDDDDDDDDDDDDDDDDDDDDDeeeeeeeeeeeeeeeeeeeeeeeeeevvvvvvvvvvvvvvvvvvvvvvvvveeeeeeeeeeeeeeeeeeeeeeeellllllllllllloooooooooooooooooooooooopppppppppppppppppppppppmmmmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnnnnttttttttttttttttttDDDDDDDDDDDDDDeeeeeeeeeeeeeeeevvvvvvvveeeeeeeeeeeeeeeeeeeellllllloooooooooooooooooopppppppppppppmmmmmmmeeeeeeeeeeeeeeeeeennnnnttttttttt ttttttssssssssssssssssssssssttttttttttssssssssssssssssss

& Capital Deeeeeeeeevvvvvvvveeeeeeeeelllllllllloooooooooooppppppppmmmmmmmmmmeeeeeeeeeennnnnnnnnntttttttttttssssssssss

&&&&&&&&&&&&&&&&&&&&&& CCCCCCCCCCCCCCCCCCCCaaaaaaaaaaaaaaaaaaaaaaappppppppppppppppppiiiitttttttttttttttaaaaaaaaaaaaaaaaaaaaaaallllllllll&&&&&&&&&&&&&&&&&&&&&&& CCCCCCCCCCCCCCCCCCCCCCCaaaaaaaaaaaaaaaaaaappppppppppppppppppppppiiiiiiiiiiiiiiiiiiiitttttttttttttttttttaaaaaaaaaaaaaaaaaaaallllllllllllllllExpenditure

&&&&&& CCCCCCaaaaaaaaaaaappppppiiiiiiiittttttttttaaaaaaaaaaaallllllllll EEEEEEEEExxxxxxxxxxxxxxxxxxxxxppppppppppppppppppppeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnddddddddddddddddddiiiitttttttttttttuuuuuuuuuuuuuuuuurrrrrEEEEEEEEEEEEEEEEExxxxxxxxxxxxxxxxxxxxxxppppppppppppppppppppeeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnddddddddddddddddddddddddiiiiiiiiiiiittttttttttttttttuuuuuuuuuuuuuuuurrrrrrrrrrrrrrrrrEEEEEEE dddddddddddddiiiiiiiiiiiiittttttttttttttt reeeeeeeeeeeeeeeeeeeeeerrreeeeeeeeeeeeeeeeeeeeeee

CommitmentsCCCCCCCCCCCCCCCCCCCCCCCCCoooooooooooooooooooooooooooommmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmiiiiiiiiiiiiiiiiiiiiiiitttttttttttttttttttttmmmmmmmmmmmmmmmmmmmmmmmmmeeeeeeeeeeeeeeeeeeeeeeennnnnnnnnnnnnnnnnnnnnntttttttttttttttttttt ttttttttttttttttssssssssssssssssssssssss


Notes:

THANK YOU

Grayston Office Park, Sandton

43


CONCLUSION

SOUTH AFRICA V&A WATERFRONT GOZ

Stable property fundamentals

Anaemic economic growth

Rising interest rates

Rising operating costs

Slowing credit growth

Slowing rental growth rate

Weak demand and increasing supply/ competition

Constrained consumer demand

Lack of business confidence

Negative gearing

Strong retail sales growth continues

Precinct benefiting from weak Rand

Strong property fundamentals

Development in Silo precinct nearing completion with Canal District now under development

Improved contribution from office sector

2016 GDP growth forecast 2.8%

Strengthening AUD to ZAR

Low inflation

Interest rates and cap rates decreasing

GRT - 7 years market experience

Strong property fundamentals

Positive gearing

FY16 distribution growth forecast 4% in AUD

Competitive with limited opportunities

Dividend growth for FY16 will be similar to that achieved for HY16 DIVIDEND GUIDANCE:


Notes:

46

ANNEXURE CONTENTS Growthpoint’s property portfolio

Property investment activities

Loan exposure per financier

Debt expiry profile per financier

Fixed interest rate expiry profile RSA

Wealth created & distributed to stakeholders

Shares issued & shareholders holding >2% at HY16

Split of RSA property portfolio

Acquisitions & disposals RSA

Developments & Capital Expenditure RSA

Commitments RSA

Non-current assets held for sale RSA

Retail overview RSA

Office overview RSA

020000000000000000000 020202022020202020220202202200

03000000000000000000000 03030303033030330303303030303030333

010000000000000000000000 0101101001011000100110001

0400000000000000000000 04044040440404044040404044040444

050000000000000000000 050555505505050505050505055050550

0600000000000000000000 0660606060606606060606060606060666666

07000000000000000000000 07077770707070770700707000777

080000000000000000000 080808080880808080808808080808888888

09000000000000000000000 090909099099099909090909090900909909

1011111111111 0000000000000000000

11111111111111 11111111111

12111111111111 22222222222222222222

13111111111 3333333333333333333

14111111111111 4444444444444444 Merck, Edenvale

ANNEXURES

MontClare Place, Cape Town


Notes:

48

ANNEXURE 01 : GROWTHPOINT’S PROPERTY PORTFOLIO

RETAIL OFFICE INDUSTRIAL RSA TOTAL GOZ (1) (4) V&A (1)

Number of properties 58 185 230 473 57 1

GLA (m²) 1 408 468 1 804 820 2 243 707 5 456 995 1 085 041 206 497

Vacancy (m²) 35 789 137 333 93 079 266 201 8 179 2 753

Vacancy (%) 2.5 7.6 4.2 4.9 3.0 1.3

Valuation (Rm) 28 912 33 502 11 241 73 655 29 359 7 027

Value per m² (excl. bulk) 20 520 17 703 4 713 13 089 27 055 31 556

Average gross rental (per m²/month) (R) 167,0 143,0 45,7 109,0 AUD188,0 (2) 274,0

Forward yield (%) 7.5 8.2 9.1 8.1 7.1 7.0

Average in force escalations (%) (3) 7.5 8.3 8.5 8.1 3.1 8.0

Weighted average lease period (years):(3)

By gross rental 3.7 4.2 3.0 3.6 6.6 10.8

Renewal success rate (%) 91.6 64.6 58.2 69.0 85.1 89.6

Weighted average renewal growth (%) 5.8 (4.3) 0.8 1.6 3.1 5.4

Weighted average future escalations on renewals (%) 7.1 8.2 8.6 7.7 3.6 8.0

1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%. 2. Based on net rental per annum. 3. Excluding Acucap and Sycom. 4. Measurements and ratios are based on income and not GLA (when compared to RSA).

47

ANNEXURE CONTENTS Industrial overview RSA

GLA & vacancy reconciliation RSA

Split of V&A Waterfront property portfolio

Developments & commitments V&A Waterfront (50%)

Net property & distributable income analysis V&A Waterfront (50%)

V&A Waterfront overview

GLA & vacancy reconciliation V&A Waterfront (50%)

Split of GOZ property portfolio

Acquisitions, developments & commitments GOZ

Net property income analysis GOZ

GOZ overview

GLA & vacancy reconciliation GOZ

16111111111 666666666666666666666

17111111111 77777777777777

151111111111 55555555555555555555

1811111111 8888888888888888888888

19111111111 9999999999999999999999

2022222222222222222 2020200202020000000000020

212222222222222222222 21112121121121222211

222222222222222222 222222222222222222222222222

23222222222222222222 2333333233233333232332333233

2422222222222222222 24242444244424442444242

252222222222222222222 25255555255255255255255555525

262222222222222222222 2662662662626266666266666666

Grosvenor Corner, Rosebank


Notes:

50

ANNEXURE 03 : LOAN EXPOSURE PER FINANCIER

Nedbank 33%

RMB 20%

Standard Bank 13%

JSE (Corporate Bonds) 12%

OMSFIN 7%

LibFin 6%

Investec 5%

ABSA 3%

China Construction Bank 1%

49

ANNEXURE 02 : PROPERTY INVESTMENT ACTIVITIES

ANNEXURES RETAIL

Rm OFFICE

Rm INDUSTRIAL

Rm RSA TOTAL

Rm GOZ(1)

Rm TOTAL

Rm V&A(1)

Rm

Opening balance – 1 July 2015 28 213 32 901 10 436 71 550 22 024 93 574 6 761

Purchase price of acquisitions 9,23 - 192 384 576 1 253 1 829 -

Selling price of disposals 9 - (555) (71) (626) - (626) -

Developments and capex 10,18,23 295 649 302 1 246 335 1 581 266

Fair value adjustment 404 315 190 909 750 1 659 -

Foreign currency translation - - - - 4 997 4 997 -

Total 28 912 33 502 11 241 73 655 29 359 103 014 7 027

Long-term property assets 28 912 33 210 11 139 73 261 29 359 102 620 7 027

Classified as held for sale 12 - 292 102 394 - 394 -

Commitments 11,18,23 428 1 428 185 2 041 742 2 783 706

1. V&A Waterfront is included reflecting Growthpoint's 50% interest, GOZ is reflected at 100%.


Notes:

52

ANNEXURE 05 : FIXED INTEREST RATE EXPIRY PROFILE RSA

0

5

10

15

20

25

Floating HY17 HY18 HY19 HY20 HY21 HY22 HY23 HY24 HY25

16% 10% 10% 15% 16% 23% 6% 0% 1% 3% %

51

ANNEXURE 04 : DEBT EXPIRY PROFILE PER FINANCIER

0

5

10

15

20

25

30

HY17 HY18 HY19 HY20 HY21 HY22 HY23 HY24 HY25

ABSA China Construction Investec JSE (Corporate Bonds) LibFin Nedbank Omsfin RMB Standard Bank

28% 16% 18% 17% 5% 5% 4% 1% 6% %


Notes:

54

ANNEXURE 07 : SHARES ISSUED & SHAREHOLDERS HOLDING >2% AT HY16

SHARES

Opening balance 1 Jul 2015 2 711 056 264

Dividend reinvestment (Sep 2015) 19 309 956

Shares issued for acquisition (Sept 2015) 1 061 312

Closing balance Dec 2015 2 731 427 532

Treasury shares held for staff share scheme (28 565 013)

Shares in issue (net of treasury shares) 2 702 862 519

% HOLDING SHARES HELD

Public Investment Corporation Ltd 12.8 349 700 091

Stanlib Asset Management Ltd 6.3 172 447 015

Southern Palace Properties (Pty) Ltd 6.2 166 625 203

Investec Asset Management (Pty) Ltd 4.7 128 358 158

Coronation Fund Managers Ltd 4.1 112 728 111

Old Mutual Group 3.7 100 406 445

The Vanguard Group Inc 3.3 90 782 921

BEE Consortium 3.0 80 166 667

Mondrian Investment Partners Ltd 3.0 82 179 963

Prudential Portfolio Managers 2.5 67 651 505

Sanlam Investment Management 2.5 67 082 819

Sesfikile Capital (Pty) Ltd 2.3 61 994 279

Meagro Asset Managers (Pty) Ltd 2.1 55 887 237

Total shareholders holding >2% 56.5 1 536 010 414

Other 43.5 1 195 417 118

Total 100.0 2 731 427 532

Foreign shareholding : 28.0% of institutional ownership and 21.3% of total shares issued

53

180 236 259

1 520 1 967

2,444 128

180

180

897

1 077

1,293

285

329

471

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

HY14 HY15 HY16

Employees Shareholders Minority interest holders Providers of debt Governments - direct taxes

ANNEXURE 06 : WEALTH CREATED & DISTRIBUTED TO STAKEHOLDERS

R3 789m R3 010m R4 647m

8.7%

28.4%

4.8%

51.9%

6.2%

10.1%

27.8%

3.9%

52.6%

5.6%

* Wealth created based on a look-through principle and therefore includes RSA, GOZ and V&A Waterfront.

9.5%

29.8%

4.2%

50.5%

6.0%

Rm


Notes:

56

ANNEXURE 09 : ACQUISITIONS & DISPOSALS RSA

ACQUISITIONS SECTOR PURCHASE PRICE

Rm YIELD

Samrand development, Midrand Industrial 340,3 Land

33 Fricker Road, Illovo, Johannesburg Office 115,2 8.5%

4 Pencarrow, Umhlanga, Durban Office 41,0 8.8%

35 & 37 Wierda Road West, Wierda Valley, Sandton Office 36,1 8.6%

3 Spartan Crescent, Wesco Park, Johannesburg Industrial 30,0 9.8%

57 on Gibson, Aeroton, Johannesburg Industrial 13,4 7.7%

TOTAL 576,0

DISPOSALS SECTOR SELLING PRICE

Rm

PROFIT/(LOSS) ON COST

Rm

PROFIT/(LOSS) ON BOOK VALUE

Rm YIELD

Discovery Head Office (45%), Sandhurst, Sandton Office 462,5 - - n/a

132 Jan Smuts Avenue, Sandton Office 91,0 (10,5) - 9.3%

Laser Clayville, Midrand Industrial 36,0 22,0 0,1 11.5%

Linus, Parow, Cape Town Industrial 20,5 6,7 - 11.6%

Laser New Brighton, New Brighton, Port Elizabeth Industrial 13,8 9,0 (0,4) 33.0%

Woodstock, Cape Town Office 2,0 (0,7) 0,2 9.0%

TOTAL 625,8 26,5 (0,1)

55

ANNEXURE 08 : SPLIT OF RSA PROPERTY PORTFOLIO

VALUE GLA VALUE GLA

Retail 40% Office 45% Industrial 15%

Retail 26% Office 33% Industrial 41%

Greater JHB 56% Western Cape 21% Pretoria 8% KwaZulu-Natal 8% Eastern Cape 4% North West 2% Other 1%

Greater JHB 59% Western Cape 20% Pretoria 5% KwaZulu-Natal 11% Eastern Cape 3% North West 1% Other 1%


Notes:

58

ANNEXURE 11 : COMMITMENTS RSA

COMMITMENTS SECTOR HY16

Rm Developments 1 810,2 Vaal Mall (77.9%), Vanderbijlpark, Johannesburg Retail 172,3 Greenacres, Greenacres, Port Elizabeth Retail 154,3 Hillcrest Corner (50%), Hillcrest, Durban Retail 38,1 Discovery Head Office (55%), Sandhurst, Sandton Office 996,0 Anslow Phase 2, Bryanston, Sandton Office 86,1 Golf Park, Mowbray, Cape Town Office 55,2 Bridgeway Park, Century City, Cape Town Office 75,6 M1 Place, Sandton Industrial 66,2

Other below R30,0m 166,4 Acquisitions 231,1 Pinmill Farm (balance of 50%), Kramerville, Sandton Office 172,1

Anderbolt (8 Paul Smit), Boksburg, Johannesburg Industrial 59,0

TOTAL 2 041,3

57

ANNEXURE 10 : DEVELOPMENTS & CAPITAL EXPENDITURE RSA

DEVELOPMENTS & CAPITAL EXPENDITURE SECTOR HY16

Rm Vaal Mall (77.86%), Vanderbijlpark, Johannesburg Retail 75,8 Greenacres, Greenacres, Port Elizabeth Retail 67,7 Fourways Crossing Retail Centre (50%), Fourways, Johannesburg Retail 18,5 Paarl Mall, Paarl, Cape Town Retail 16,5 Watercrest Mall (50%), Waterfall, Durban Retail 15,5 Other, below R15m Retail 100,2 Discovery Head Office (55%), Sandhurst, Sandton Office 202,0 Anslow Phase 2, Bryanston, Sandton Office 68,8 Ridgeview, Umhlanga Ridge, Durban Office 54,6 The Boulevard, Westville, Durban Office 45,5 Golf Park, Mowbray, Cape Town Office 29,7 Bridgeway Park, Century City, Cape Town Office 18,9 3 Bastion Inn, Newland on Main, Cape Town Office 17,5 Other, below R15m Office 212,5 Greenfield Industrial Park, Airport Industrial, Cape Town Industrial 79,3 Midrand Central Business Park 518, Midrand Industrial 40,6 Isobar, Isando, Johannesburg Industrial 30,0 Hilltop Industrial Park, Germiston, Johannesburg Industrial 28,2 Monte Carlo, Pinetown, Durban Industrial 22,1 Montague Business Park (25%), Montague Gardens, Cape Town Industrial 15,7 Other, below R15m Industrial 86,4

TOTAL 1 246,0

DEVELOPMENT EXPENDITURE 814,5

CAPITAL EXPENDITURE 431,5


Notes:

60

ANNEXURE 13 : RETAIL OVERVIEW RSA

TOP 10 PROPERTIES BY VALUE FAIR VALUE

Rm GLA m²

Brooklyn Mall & Design Square (75%), Brooklyn, Pretoria 2 150 55 899 Festival Mall, Kempton Park, Johannesburg 1 732 80 231 Waterfall Mall, Rustenburg 1 398 49 112 Lakeside Mall, Benoni 1 315 65 340 Vaal Mall (77.9%), Vanderbijlpark 1 315 37 223 Greenacres, Port Elizabeth 1 201 43 455 Bayside Centre, Table View, Cape Town 1 163 45 459 Key West, Krugersdorp 1 159 58 271 La Lucia Mall, La Lucia, Durban 1 155 37 284 Kolonnade (50%), Montana Park, Pretoria 1 068 38 101 Sub Total 13 656 510 375 Balance of the sector 15 256 898 093 TOTAL FOR THE SECTOR 28 912 1 408 468

TOP 10 TENANTS GLA(1)

m² Edcon Holdings (Pty) Ltd 129 742The Foschini Group 55 577Shoprite Holdings Ltd 149 108Pick ‘n Pay Stores Ltd 116 585Mr Price Group Ltd 55 964Pepkor Holdings Ltd 49 045Truworths International Ltd 32 405Woolworths Holdings Ltd 87 444Massmart Holdings Ltd 67 274Clicks Group Ltd 28 215Sub Total 771 359 Balance of the sector 601 320 TOTAL FOR THE SECTOR (excluding vacancies) 1 372 679

LEASE EXPIRY (% OF GLA) LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)

15.3

13.4

17.1

16.9

12.5

20.2

2.1

2.5

HY22 and beyondBy HY21By HY20By HY19By HY18By HY17MonthlyVacant

9.6

13.8

15.5

20.0

15.6

20.6

2.3

2.6


1. Ranked in terms of gross monthly rental.

59

ANNEXURE 12 : NON-CURRENT ASSETS HELD FOR SALE RSA

PROPERTIES HELD FOR SALE SECTOR HY16

Rm Fairview Office Park, Port Elizabeth Office 110,3

Greenacres Office Park, Port Elizabeth Office 104,8

The Crescent, Sandton Office 28,5

29 West Street, Houghton, Johannesburg Office 25,9

31 West Street, Houghton, Johannesburg Office 22,1

JD Group Warehouse, Germiston, Johannesburg Industrial 70,0

4 Halifax Road, Durban Industrial 23,3

Laser Silvertondale, Pretoria Industrial 9,2

TOTAL RSA 394,1


Notes:

62

ANNEXURE 15 : INDUSTRIAL OVERVIEW RSA


Rm GLA m²

Growthpoint Industrial Estate, Meadowdale, Germiston 391 61 246 Hilltop Industrial Estate, Elandsfontein, Johannesburg 363 76 283 Montague Business Park (25%), Montague Gardens, Cape Town 338 27 321 Adcock Ingram, Midrand 209 21 536 Rivonia Crossing 2, Sunninghill, Sandton 192 19 778 N1 Business Park (20%), Midrand 187 19 584 Omni Park, Aeroton, Johannesburg 184 41 331 Isobar, Isando, Johannesburg 183 47 194 Central Park, Goodwood, Cape Town 169 49 135 Meadowbrook Estate, Meadowbrook, Germiston 144 16 772 Sub Total 2 360 380 180 Balance of the sector 8 881 1 863 527 TOTAL FOR THE SECTOR 11 241 2 243 707


m² The Bidvest Group Ltd 54 938Adcock Ingram Holdings Ltd 27 280Scania SA (Pty) Ltd 23 342Distell Ltd 45 658Allied Electronics Corporation Ltd 27 872Pioneer Foods (Pty) Ltd 20 734Barloworld Ltd 18 516Avon Justine (Pty) Ltd 16 239Nestle (South Africa) (Pty) Ltd 16 255DCD Dorbyl (Pty) Ltd 72 252Sub Total 323 086Balance of the sector 1 827 542 TOTAL FOR THE SECTOR (excluding vacancies) 2 150 628


14.2

6.3

6.2

18.9

16.0

32.2

2.0

4.2


14.1

6.9

6.7

20.7

16.4

29.8

2.0

3.4



61

ANNEXURE 14 : OFFICE OVERVIEW RSA


Rm GLAm²

The Woodlands Office Park, Woodmead, Johannesburg 2 616 114 378Investec, 100 Grayston Drive, Sandton 2 390 70 945Constantia Office Park, Roodepoort, Johannesburg 1 066 72 460The Place, Sandton 998 34 482Inanda Greens, Wierda Valley, Sandton 920 40 736Harrowdene Office Park, Woodmead, Johannesburg 792 41 353Growthpoint Business Park, Midrand 613 70 201MontClare Place, Claremont, Cape Town 565 29 453Tygerberg Park, Plattekloof, Cape Town 562 27 021Turbine Square Hall, Newtown, Johannesburg 496 22 796Sub Total 11 018 523 825Balance of the sector 22 484 1 280 995TOTAL FOR THE SECTOR 33 502 1 804 820


m² Investec Bank Ltd 83 781 Deloitte (South Africa) 46 439 Transnet Ltd 31 535 Absa Bank Ltd 25 495 Netcare Hospitals (Pty) Ltd 17 867 Business Connexion (Pty) Ltd 36 093 Anglogold Ashanti Ltd 19 381 Mobile Telephone Networks (Pty) Ltd 19 650 EOH Mthombo (Pty) Ltd 24 300 Hatch Goba (Pty) Ltd 21 320 Sub Total 325 861 Balance of the sector 1 341 626 TOTAL FOR THE SECTOR (excluding vacancies) 1 667 487


15.7

13.0

9.3

17.2

15.8

17.9

3.5

7.6


19.8

13.1

9.0

17.2

14.4

17.5

3.2

5.8




Notes:

64

ANNEXURE 17 : SPLIT OF V&A WATERFRONT PROPERTY PORTFOLIO

PROPERTY PORTFOLIO BY VALUE PROPERTY PORTFOLIO BY GLA DEVELOPED VS. UNDEVELOPED BY

VALUE NET PROPERTY INCOME

Retail 52%

Office 23%

Fishing & Industrial 6%

Hotel & Residential 12%

Bulk 7%

Retail 23%

Office 25% Fishing & Industrial 28%

Hotel & Residential 24%

Retail 52%

Office 21% Fishing & Industrial 10% Hotel & Residential 17%

Undeveloped 7% Developed 93%

63

TOTAL GLA m²

VACANT AREA m²

VACANCY %

Balance as at 1 July 2015 5 425 964 307 693 5.7

GLA adjustments 11 107 11 107

Disposals (29 515) (115)

Acquisitions 22 604 9 719

Developments and extensions 26 835 26 835

Leases expired in the period (1) 640 025

Renewals of expired leases (2) (441 531)

New letting of vacant space (368 655)

Leases terminated 81 123

Balance as at 31 December 2015 5 456 995 266 201 4.9

ANNEXURE 16 : GLA & VACANCY RECONCILIATION RSA

1. 11.8% of opening balance GLA expired during the period under review. 2. Retention % of 69% compared to 65.2% for the period to HY15.


Notes:

66

ANNEXURE 19 : NET PROPERTY & DISTRIBUTABLE INCOME ANALYSIS V&A WATERFRONT (50%)

HY16 Rm

HY15 Rm

INCREASE

Gross property revenue 294 263 11.8%

Property expenses (83) (75) 10.7%

Net property income 211 188 12.2%

Other operating expenses (7) (7) 0.0%

Net finance (costs)/income (11) (11) 0.0%

Other non-distributable amounts 5 2 150.0%

Distributable income 198 172 15.1%

Adjustments (14) (11)

BP (4) (7)

Watershed (2) (1)

H&M Hamleys (1) (1)

Other developments (7) (2)

Adjusted “like-for-like” distributable income 184 161 14.3%

65

ANNEXURE 18 : DEVELOPMENTS & COMMITMENTS V&A WATERFRONT (50%)

SECTOR HY16

Rm

Developments and Capital Expenditure

No.5 Silo - PwC and Werksmans Office 59,6

Canal District (BAT) Office 33,0

Grain Silos, Elevator & Dust House Museum 40,1

Other below R30,0m 133,4

Total 266,1

Commitments

Canal District (BAT) Office 205,2

Silo No.6 (Raddison Red Hotel) Hotel & Residential 168,2

Silo No.3 (Residential for sale) Hotel & Residential 143,3

Other below R100,0m 189,1

Total 705,8


Notes:

68

ANNEXURE 21 : GLA & VACANCY RECONCILIATION V&A WATERFRONT (50%)

TOTAL GLA m2

VACANT AREA m2

VACANCY %

Balance as at 1 July 2015 202 658 5 238 2.6%

GLA adjustments 672 667

Developments and extensions 3 167 3 019

Leases expired in the period (1) - 5 846

Renewals of expired leases (2) - (5 238)

New letting of vacant space - (7 465)

Leases terminated - 686

Balance at 31 December 2015 206 497 2 753 1.3% 1. 3% of opening balance GLA expired during the period under review. 2. Retention % of 89.6% compared to 90.2% for the period to HY15.

67

ANNEXURE 20 : V&A WATERFRONT OVERVIEW

TOP 10 TENANTS (100%) GLA(1)

m²

Allan Gray (Pty) Ltd 18 499

Nedbank Group Ltd 25 433

Legacy Hotels 16 226

Edcon Holdings Ltd 7 162

Newmark Hotels 7 563

Tourvest Holdings (Pty) Ltd 3 318

Sun International Hotels 17 100

Woolworths Holdings Ltd 7 682

The Foschini Group Ltd 3 013

National Department of Public Works 14 601

Subtotal 120 597

Balance of V&A 286 891

Total for V&A Waterfront (excluding vacancies) (100%) 407 488

11 18 21

11 10

29

2

24

9 8 4

53

11 4

11

74

6

94

Vacant By HY17 By HY18 By HY19 By HY20 By HY21 HY22 andbeyond

% Retail Office Fishing & Industrial Hotel & Residential

LEASE EXPIRY (% OF GLA)

17 18 27

16 7

15 10 11 8 4

67

34

11 8

47

1 1

98

Vacant By HY17 By HY18 By HY19 By HY20 By HY21 HY22 andbeyond

% Retail Office Fishing & Industrial Hotel & Residential

LEASE EXPIRY (% OF GROSS MONTHLY RENTAL)



Notes:

70

ANNEXURE 23 : ACQUISITIONS, DEVELOPMENTS & COMMITMENTS GOZ

SECTOR HY16

Rm HY16

AUDm

ACQUISITIONS

1-3 Pope Court, Beverley, South Australia Industrial 203,0 22,3

34 Peddalls Road, Kembla Grange, New South Wales Industrial 212,4 21,6

Building C, 211 Wellington Road, Mulgrave, Victoria Office 76,3 7,5

255 London Circuit, Canberra, ACT Office 761,7 70,1

TOTAL 1 253,4 121,5

DEVELOPMENTS AND CAPITAL EXPENDITURE

Building B, 211 Wellington Road, Mulgrave, Victoria Office 286,3 28,3

Other Office 48,7 5,1

TOTAL 335,0 33,4

COMMITMENTS

Building C, 211 Wellington Road, Mulgrave, Victoria Office 501,9 43,9

Other 240,1 21,0

TOTAL 742,0 64,9

69

ANNEXURE 22 : SPLIT OF GOZ PROPERTY PORTFOLIO

VALUE GLA VALUE GLA

Office 52% Industrial 48%

Queensland 29% Victoria 30% South Australia 7% New South Wales 22% Western Australia 5% ACT 6% Tasmania 1%

Office 19% Industrial 81%

Queensland 18% Victoria 50% South Australia 12% New South Wales 10% Western Australia 7% ACT 2% Tasmania 1%


Notes:

72

ANNEXURE 25 : GOZ OVERVIEW


Rm GLA m²

1 Charles Street, Parramatta, NSW 3 173 32 314 70 Distribution Street, Larapinta, QLD 2 270 75 425 20 Colquhoun Road, Perth Airport, WA 1 612 80 374 Building C, 219 - 247 Pacific Highway, Artarmon, SW 1 241 14 496 1231-1241 Sandgate Road, Nundah, QLD 1 132 12 980 333 Ann Street, Brisbane, QLD 1 058 16 490 CB1, 22 Cordelia Street, South Brisbane, QLD 1 015 11 529 10-21 Mort Street, Canberra, ACT 991 15 398 572-576 Swan Street (Building 2), Richmond, VIC 906 14 660 120 Northcorp Boulevard, Broadmeadows, VIC 860 58 320 Sub Total 14 258 331 986 Balance of GOZ 15 101 753 055 TOTAL FOR GOZ 29 359 1 085 041


m² Woolworths 406 941 NSW Police 32 314 Commonwealth of Australia - DEEWR 24 370 GE Capital Finance Australasia 24 910 Linfox 58 077 Jacobs Engineering 9 522 Energex 8 754 Fox Sports 8 092 Star Track Express 44 424 Downer EDI Mining 5 636 Sub Total 623 040 Balance of GOZ 453 822 TOTAL FOR THE SECTOR (excluding vacancies) 1 076 862

LEASE EXPIRY (% OF INCOME)

67.0 6.0 8.0 2.0 9.0 5.0 0.0 3.0

FY22 and beyondBy FY21By FY20By FY19By FY18By FY17By FY16Vacant


71

ANNEXURE 24 : NET PROPERTY INCOME ANALYSIS GOZ

HY16 AUDm

HY15 AUDm

INCREASE / (DECREASE)

Gross property revenue 98,9 96,4 2.6%

Property expenses (11,5) (11,0) 4.5%

Net property income 87,4 85,4 2.3%

Adjustments (3,7) (0,4)

Acquisitions and developments (3,7) -

Disposals - (0,4)

Adjusted “like-for-like” net property income 83,7 85,0 (1.5%)

Office 40,7 43,3 (6.0%)

Industrial 43,0 41,7 3.1%


Notes:

THANK YOU

Inyanda, Parktown

73

ANNEXURE 26 : GLA & VACANCY RECONCILIATION GOZ

TOTAL GLA m2

VACANCY(1) %

Balance as at 1 July 2015 1 050 611 3.0

GLA adjustments 349 -

Disposals - -

Acquisitions, developments and extensions 34 081 -

Balance at 31 December 2015 1 085 041 3.0

1. Vacancy ratio is based on income and not GLA (when compared to RSA).


Notes:

BASTION GRAPHICS

CONDENSED UNAUDITED RESULTS

FOR THE SIX MONTH ENDED

31 DECEMBER 2015

The Silos, V&A Waterfront

Condensed Unaudited Results for the six months ended 31 December 2015

Highlights

gearing levels remain conservative, decreased from 33.2% FY15

RSA vacancies down from 5.7% FY15 – strong focus on tenant retention

R2,4 billion 24.3% distributable income growth

R110,0 billion property assets

28.7% growth in gross revenue

4.9% vacancies

32.4% LTV

89,5 cents 6.0% growth dividend per share

1 GROWTHPOINT PROPERTIES CONDENSED UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

COMMENTARYINTRODUCTIONGrowthpoint is the largest South African primary listed REIT with a quality portfolio of 473 directly owned properties in South Africa valued at R73,7 billion, as well as three equity-accounted investments, with our share of properties valued at R7,3 billion of which the V&A Waterfront is by far the largest. In addition, Growthpoint has a 65% interest in Growthpoint Properties Australia (GOZ), which owns 57 properties in Australia valued at R29,4 billion as well as a listed investment with a value of R452 million that relates to a 22.9% investment in the Stenham European Shopping Centre Fund (SESCF), a company listed on the Channel Island Stock Exchange as a closed fund which was acquired as part of the Acucap and Sycom business combination.

The company’s objective is to grow and nurture a diversified portfolio of quality investment properties, providing accommodation to a wide spectrum of users and delivering sustainable income distributions and capital appreciation, optimised by effective financial structures. Effectively, net property income received by the property portfolios of South Africa (RSA) and GOZ, including interest received, the distributable income received from the equity-accounted and listed investments, less operating costs, interest on debt and normal taxation, is distributed to shareholders bi-annually. Growthpoint’s distributions are based on sustainable income generated from rentals. The company does not distribute capital profits.

Growthpoint is included in the JSE ALSI Top 40 Companies Index, with a market capitalisation of R63,5 billion at 31 December 2015 (HY16). Over this period, on average, more than 155,4 million shares traded per month (HY15: 94,9 million). The monthly average value traded was R3,9 billion (HY15: R2,4 billion). This makes Growthpoint the most liquid and tradable way to own commercial property in South Africa.

Excluding the equity-accounted investments, the South African portfolio represents 71.5% of the property portfolio by value and 83.4% by gross lettable area (GLA), and is well diversified in the three major sectors of commercial property, being retail, office and industrial. The bulk of the value of the South African properties is situated in strong economic nodes within the major metropolitan areas.

For the period under review net asset value of the group increased by 6.1% to 2 508 (FY15: 2 364) cents per share.

GROWTH IN DISTRIBUTIONSGrowthpoint delivered growth in distributions per share for HY16 of 6.0% and has declared an interim dividend of 89,5 cents per share for the six months ended 31 December 2015. This growth is in line with the guidance given to the market in the FY15 results of between 5.0% and 6.0%.

In Rand terms distributions increased by R477 million or 24.3% and was driven by the inclusion of 100% of the former Acucap Properties Limited (Acucap) and 99% of Sycom Property Fund (Sycom) for the full period under review, whilst the comparative period included the distributions of Acucap and Sycom as listed investments held at 34.6% and 15.6% respectively. The distribution growth was well supported by a strong performance from the V&A Waterfront.

The increase in distributions was further enhanced by the investment in GOZ, where a hedging strategy led to distributions from GOZ being received at an average rate of R10.28:AUD1 compared to R9.92:AUD1 for FY15.

BASIS OF PREPARATION The condensed consolidated interim financial statements are prepared in accordance with International Financial Reporting Standard, IAS 34

Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and the requirements of the Companies Act of South Africa. The accounting policies applied in the preparation of these interim financial statements are in terms of International Financial Reporting Standards and are consistent with those applied in the previous annual financial statements.

Mr G Völkel (CA(SA)), Growthpoint’s Financial Director, was responsible for supervising the preparation of these condensed consolidated interim financial statements. These condensed consolidated interim financial statements have not been reviewed or audited by Growthpoint’s independent external auditors.

GROWTHPOINT PROPERTIES AUSTRALIA (GOZ) The investment in GOZ has been accounted for in terms of IAS 21, The

Effects of Changes in Foreign Exchange Rates. The statement of financial position includes 100% of the assets and liabilities of GOZ, converted at the closing exchange rate at HY16 of R11.43:AUD1 (FY15: R9.40:AUD1). The statement of profit or loss and other comprehensive income also includes 100% of the revenue and expenses of GOZ, which were translated at an average exchange rate of R9.84:AUD1 (HY15: R9.78:AUD1) for HY16. The resulting foreign currency translation difference is recognised in other

comprehensive income. A non-controlling interest was raised for the 35%

(FY15: 35%) not owned by Growthpoint.

A deferred tax liability of R2,1 billion (FY15: R1,3 billion) is included in the statement of financial position. This relates to capital gains tax payable in Australia if Growthpoint were to sell its investment in GOZ. Included in normal tax in the statement of profit or loss and other comprehensive income, is R33 million (HY15: R15 million) that relates to withholding tax paid on the distributions received from GOZ.

V&A WATERFRONT AND OTHER EQUITY-ACCOUNTED

INVESTMENTSThe investments in the V&A Waterfront and the other joint ventures have

been accounted for in terms of IFRS 11, Joint Arrangements. The equity-accounting method was used, whereby the Group's share of the profit or loss and other comprehensive income of these investments were accounted for.

Retail operations at the V&A Waterfront performed well where 13% growth in sales was recorded with a contributing factor being the weaker Rand which afforded tourists the opportunity to spend more. Included in the HY16 finance income, is R217 million income from the V&A Waterfront, compared to distributable income for HY15 of R172 million.

NET PROPERTY INCOMEGross revenue increased by 28.7% for HY16 compared to HY15. The South African operations increased revenues by 37.45% compared to HY15, as a result of the acquisition of Acucap and Sycom. The GOZ operations increased revenues by 2.6%.

The ratio of property expenses to revenue for the Group increased marginally to 21.3% at HY16 from 20.8% at HY15. For RSA the ratio declined to 23.5% from 23.8% at HY15.

FAIR VALUE ADJUSTMENTS The revaluation of properties in South Africa and GOZ resulted in an upward revision of R1,7 billion (1.8%) to R103,0 billion for investment property (including investment properties classified as held for sale). This was mainly due to an increase in future contractual rental. Interest-bearing borrowings and derivatives were fair valued using the swap curve at HY16, resulting in an increase of R461 million in the overall liability. In addition, a loss of R113 million and R136 million were realised on the settlement of an interest rate swap by GOZ and the South African operations respectively.

These fair value adjustments, together with the other non-distributable items such as capital items, non-cash charges, deferred taxation and the net effect of the non-controlling interest’s portion of the non-distributable items were transferred to the non-distributable reserve.

FINANCE COSTSFinance costs increased by 19.8% to R1 217 million (HY15: R1 016 million) as a result of the acquisition of Acucap and Sycom. These outflows were somewhat negated by the proceeds from the Distribution Re-Investment Plans (DRIP’s) offered by Growthpoint. The weighted average interest rate for RSA borrowings was 9.0% (HY15: 9.4%). The weighted average maturity of debt reduced to 2.7 years (FY15: 2.9 years). Finance costs for GOZ decreased by 11.3% from R239 million in HY15 to R212 million in HY16. The interest cover ratio, whereby the income from the equity-accounted investments and listed investments are included in the operating profit, increased to 3.4 times at HY16 (HY15: 3.3 times).

FINANCE INCOMEFinance income decreased by 22.5% to R327 million (HY15: R422 million). The decrease resulted mainly from distributions received from the listed investment in Acucap and Sycom previously being accounted for in finance income whereas the results of Acucap and Sycom now being consolidated as a result of the business combination (HY15: R170 million).

ACQUISITIONS AND COMMITMENTS Growthpoint acquired three industrial properties for R384 million and three office properties for R192 million during the period. Development and capital expenditure for RSA amounting to R1,2 billion (HY15: R805 million) relates to various projects undertaken during the period, of which the Discovery Head Office accounted for R202 million.

GOZ acquired two industrial properties for R415 million (AUD43,9 million) and two office properties for R838 million (AUD77,6 million) and incurred development expenditure amounting to R286 million (AUD28,3 million) in respect of an office property development situated at 211 Wellington Road, Mulgrave, Victoria. Other development and capital expenditure for GOZ amounting to R49 million (AUD5,1 million) relates to various projects undertaken during the period. GOZ has further outstanding commitments of R742 million (AUD:64,9 million) which includes a commitment to fund the development of 211 Wellington Road for an amount of R501,9 million (AUD43,9 million).

2GROWTHPOINT PROPERTIES CONDENSED UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

Growthpoint RSA has commitments outstanding in respect of developments amounting to R1,8 billion (HY15: R2,0 billion) of which the Discovery Head Office (55% share) of R996 million is the largest and also includes Vaal Mall at R172 million and Greenacres phase 2 at R154 million. Further commitments in respect of property acquisitions amount to R231 million (HY15: R455 million). The commitments include the acquisition of the remaining 50% in Pinmill Farm that Growthpoint does not already own.

Development and capital expenditure at the V&A Waterfront amounted to R266 million (HY15: R173 million) for the period. Growthpoint’s share of the V&A Waterfront’s commitments outstanding at HY16 amounted to R706 million (HY15: R459 million), which relates to The Canal District, Silo number 6 (Raddison Red Hotel). Silo number 3 (Residential for sale) and other commitments below R100 million amounting to R189 million.

DISPOSALS AND HELD FOR SALE ASSETSGrowthpoint RSA disposed of six properties in the current period (HY15: six) for R626 million (HY15: R107 million) with a collective R27 million (HY15: R18 million) profit on cost achieved.

At HY16, eight RSA properties (HY15: seven) valued at R394 million (HY15: R465 million) were classified as held for sale assets.

ARREARSTotal RSA arrears at HY16 amounted to R68,2 million (HY15: R48,4 million) with a provision for bad debts of R26,5 million (HY15: R24,3 million). Total RSA bad debt expenses amounted to R7,2 million (HY15: R11,8 million).

VACANCY LEVELS At HY16, the total m2 of Growthpoint’s portfolio and vacancy levels expressed as a percentage of GLA were:

GLA Vacancy

m2 m2 % %

HY16 HY15 HY16 HY15

Retail 1 408 468 904 236 2.5 4.4

Office 1 804 820 1 486 502 7.6 8.4

Industrial 2 243 707 2 184 592 4.2 5.8

RSA total 5 456 995 4 575 330 4.9 6.4

V&A Waterfront (50%) 206 497 198 525 1.3 1.0

GOZ 1 085 041 1 023 681 0.8 1.4

Total/Average % 6 748 533 5 797 536 4.1 5.3

Vacancies have decreased across all the sectors in RSA and the focus remains on tenant retention. This is being facilitated through various initiatives including the UNdeposit campaign, which continues to maintain significant traction.

EQUITY RAISED During the period under review, Growthpoint issued 20,4 million shares and raised R502,8 million. Details thereof are as follows. In September 2015 R474,2 million was raised through the DRIP programme, where 19,3 million shares were issued at R24,56 per share. The equity raised from the DRIP was utilised to finance Growthpoint’s investment activities.

Growthpoint issued 1,1 million shares for the acquisition of Silverhorn Properties (Pty) Ltd and Basfour 2721 (Pty) Ltd.

The company has 2,7 billion shares in issue at HY16 and the authorised capital is 4,0 billion shares. Growthpoint held 28 565 013 treasury shares at HY16 (FY15: 30 631 827).

BORROWINGS AND NET WORKING CAPITALAt HY16, the consolidated loan to value ratio (LTV), measured by dividing the nominal value of interest-bearing borrowings (net of cash) by the fair value of property assets, including investment property held for sale, plus the equity-accounted investments and the listed investments, was 32.4% (HY15: 29.2%). The higher LTV relates directly to the higher LTV of the Acucap and Sycom portfolios. Growthpoint has consistently applied its policy on fair value measurement in respect of long-term interest-bearing loans and derivatives and there has been no change in valuation techniques, nor have there been any transfers between level 1, level 2 and level 3 during the period under review.

Growthpoint has unutilised committed bank facilities in RSA amounting to R4,9 billion and in Australia R4,3 billion (AUD373 million) at HY16 which provides assurance that it will be able to meet its short-term commitments which exceeded current assets by R6,3 billion at HY16 (FY15: R4,7 billion).

CHANGE IN DIRECTORATE Mr Herman Mashaba resigned on 27 January 2016 as a non-executive director and deputy chairman of Growthpoint.

EVENTS AFTER THE REPORTING PERIOD Growthpoint acquired the remaining 50% of the shares in Pinmill Shareblock (Pty) Ltd that it does not already own from MMI Group

Limited for R172,1 million, effective from 1 February 2016. This is in line with Growthpoint’s stated objective of defensively growing its property portfolio through the acquisition of complementary and quality enhancing assets.

Rm

Fair value of properties 356Net working capital 5*

Net asset value 361Consideration financed by borrowings (172)Fair value of previously held investment in Pinmill Shareblock (Pty) Ltd (178)

Gain from bargain purchase 11

Net cash outflow 172

* The initial accounting for the adjustment accounts (net working capital) was not completed at the time the financial statements were authorised for issue, as there is a 60 day period from the effective date to finalise these accounts.

The gain from bargain purchase arose as a result of an increase in the fair value of the investment property since the negotiations of the deal. It will be included in capital items on the statement of profit or loss and other comprehensive income.

PROSPECTS Property and economic fundamentals in RSA remain weak with some relief coming from the V&A and GOZ on the back of more favourable trading conditions and currency movements respectively. After considering the information above the Growthpoint Board is of the view that the dividend growth for FY16 will be similar to that achieved for HY16.

This forecast has not been subject to audit or review by the company’s independent external auditors.

INTERIM DIVIDEND WITH THE ELECTION TO REINVEST THE

CASH DIVIDEND IN RETURN FOR GROWTHPOINT SHARESNotice is hereby given of the declaration of the final dividend number 60 of 89,50000 cents per share for the period ended 31 December 2015.

Shareholders will be entitled to elect to reinvest the net Cash Dividend, in return for Growthpoint shares (Share Alternative), failing which they will receive the net Cash Dividend in respect of all or part of their shareholdings. The entitlement of shareholders to elect to participate in the share re-investment alternative is subject to the Board, either itself or through a Board sub-committee appointed to set the pricing and terms of the share re-investment alternative, having the discretion to withdraw the entitlement to elect the share re-investment alternative should market conditions warrant such action. A withdrawal of the entitlement to elect the share re-investment alternative would be communicated to shareholders before the publication of the finalisation announcement on Tuesday, 15 March 2016.

Other information:

– issued shares at 31 December 2015: 2 731 427 532 ordinary shares of no par value.

– Income Tax Reference Number of Growthpoint: 9375/077/71/7.

In accordance with Growthpoint’s status as a Real Estate Investment Trust (REIT) with effect from 1 July 2013, shareholders are advised that the dividend meets the requirements of a ‘qualifying distribution’ for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (Income Tax Act). The dividends on the shares will be deemed to be taxable dividends for South African tax purposes in terms of section 25BB of the Income Tax Act.

TAX IMPLICATIONS FOR SOUTH AFRICAN RESIDENT

SHAREHOLDERSDividends received by or accrued to South African tax residents must be included in the gross income of such shareholders and will not be exempt from the income tax in terms of the exclusion to the general dividend exemption contained in section 10(1)(k)(i)(aa) of the Income Tax Act, because they are dividends distributed by a REIT. These dividends are however exempt from dividend withholding tax (Dividend Tax) in the hands of South African resident shareholders provided that the South African resident shareholders have provided to the Central Securities Depository Participant (CSDP) or broker, as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares, a DTD(EX) (Dividend Tax: Declaration and undertaking to be made by the beneficial owner of a share) form to prove their status as South African residents.

If resident shareholders have not submitted the abovementioned documentation to confirm their status as South African residents, they are advised to contact their CSDP or broker, as the case may be, to arrange for the documents to be submitted prior to the payment of the dividend.


TAX IMPLICATIONS FOR NON-RESIDENT SHAREHOLDERSDividends received by non-resident shareholders from a REIT will not be taxable as income and instead will be treated as ordinary dividends which are exempt from income tax in terms of the general dividend exemption section 10(1)(k) of the Income Tax Act. With effect from 1 January 2014, any dividend received by a non-resident from a REIT is subject to Dividend Tax at 15%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double taxation (DTA) between South Africa and the country of residence of the non-resident shareholder. Assuming Dividend Tax will be withheld at a rate of 15%, the net amount due to non-resident shareholders is 76,07500 cents per share. A reduced dividend withholding tax rate in terms of the applicable DTA may only be relied on if the non-resident shareholder has provided the following forms to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares:

– a declaration that the dividend is subject to a reduced rate as a result of the application of the DTA; and

– a written undertaking to inform the CSDP broker or the company, as the case may be, should the circumstances affecting the reduced rate change or the beneficial owner cease to be the beneficial owner, both in the form prescribed by the Commissioner of the South African Revenue Services.

If applicable, non-resident shareholders are advised to contact the CSDP, broker or the company, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment of the dividend if such documents have not already been submitted.

Summary of the salient dates relating to the Cash Dividend and Share Alternative are as follows:

2016

Circular and form of election posted to shareholders Friday, 4 March

Last date for Growthpoint to withdraw the entitlement for shareholders to elect to participate in the share re-investment alternative before the publication of the announcement of the share alternative issue price and finalisation information on SENS Tuesday, 15 March

Announcement of Share Alternative issue price and finalisation information Tuesday, 15 March

Last day to trade ("LDT") cum dividend Wednesday, 23 March

Shares to trade ex dividend Thursday, 24 March

Listing of maximum possible number of Share Alternative shares commences on the JSE Wednesday, 30 March

Last day to elect to receive the Share Alternative (forms of election will not be accepted after 12:00 South African time) Friday, 1 April

Record date Friday, 1 April

Announcement of results of Cash Dividend and Share Alternative released on SENS Monday, 4 April

Cheques posted to certificated shareholders and accounts credited by CSDP or broker to dematerialised shareholders electing the Cash Alternative, on or about Monday, 4 April

Share certificates posted to certificated shareholders and accounts credited by CSDP or broker to dematerialised shareholders electing the Share Alternative, on or about Wednesday, 6 April

Adjustment to shares listed, on or about Thursday, 7 April

Notes:1. Shareholders electing the Share Alternative are alerted to the fact that the new shares will be listed on LDT + 3 and that these new shares can only be traded on LDT + 3, due to

the fact that settlement of the shares will be three days after record date, which differs from the conventional one day after record date settlement process.

2. Shares may not be dematerialised or rematerialised between Thursday, 24 March 2016 and close of trade on Friday, 1 April 2016.

3. The above dates and times are subject to change. Any changes will be released on SENS and published in the press.4. The Cash Dividend or Share Alternative may have tax implications for resident and non-resident shareholders. Shareholders are therefore encouraged to consult their

professional advisors should they be in any doubt as to the appropriate action to take.

By order of the Board

GROWTHPOINT PROPERTIES LIMITED1 March 2016

DIRECTORS JF Marais (Chairman), LN Sasse* (Chief Executive Officer), EK de Klerk* (Managing Director), G Völkel* (Financial Director), MG Diliza, PH Fechter, LA Finlay, JC Hayward, HS Herman, SP Mngconkola, R Moonsamy, NBP Nkabinde, FJ Visser

* Executive

GROWTHPOINT PROPERTIES LIMITED COMPANY SECRETARY(Incorporated in the Republic of South Africa) RA Krabbenhöft (Registration number 1987/004988/06) A Real Estate Investment Trust, listed on the JSE Share code: GRT ISIN: ZAE000179420

REGISTERED OFFICE TRANSFER SECRETARYThe Place, 1 Sandton Drive, Sandton, 2196 Computershare Investor Services (Pty) LtdPO Box 78949, Sandton, 2146 (Registration number 2004/003647/07) Ground Floor, 70 Marshall Street, Johannesburg, 2001 PO Box 61051, Marshalltown, 2107

SPONSOR Investec Bank Limited (Registration number 1969/004763/06) 100 Grayston Drive, Sandown, Sandton, 2196 PO Box 785700, Sandton, 2146

2 March 2016


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Unaudited Unaudited Audited 6 months 6 months 12 months 31 December 31 December 30 June 2015 2014 2015 Note Rm Rm Rm

Revenue, excluding straight-line lease income adjustment 4 689 3 643 7 740Straight-line lease income adjustment 88 133 130

Revenue 4 777 3 776 7 870Property expenses (998) (756) (1 630)

Net property income 3 779 3 020 6 240Other operating expenses and income (153) (155) (303)

Operating profit 3 626 2 865 5 937Fair value adjustments 1 833 1 704 3 562Equity-accounted investment earnings - net of tax 7 13 484Finance costs (1 217) (1 016) (2 086)Non-cash charges (70) (75) (1 723)Capital items (2) 27 1 078Finance and other investment income 1 327 422 916

Profit before taxation 4 504 3 940 8 168Taxation (850) (136) (264)

Normal taxation (including withholding tax on GOZ distribution) (37) (21) (72)Deferred taxation (813) (115) (192)

Profit after taxation 3 654 3 804 7 904Profit attributable to:

Equity holders 3 190 3 329 6 955Non-controlling interest (NCI) 464 475 949

Other comprehensive income: Items that are or may be reclassified to profit or loss: Translation of foreign operations 2 923 (556) (703)Fair value of listed investments – 774 1 143Fair value of listed investments - reclassified to profit or loss – – (1 097)

Total comprehensive income 6 577 4 022 7 247Attributable to: Equity holders 5 088 3 744 6 548Non-controlling interest 1 489 278 699

Calculation of distributable earnings Operating profit 3 626 2 865 5 937Less: Straight-line lease income adjustment (88) (133) (130)Finance costs (1 217) (1 016) (2 086)Finance and other investment income 327 422 916Cash adjustment on business acquisitions (accounted for in statement of changes in equity) – 4 4Dividends received on treasury shares (accounted for in statement of changes in equity) 13 26 66

Distributable income from GOZ retained (including NCI) – – (74)NCI’s share of distribution (excluding fair value adjustments) (202) (188) (374)Realised foreign exchange gain 22 8 45Taxation (excluding deferred taxation) (37) (21) (72)

Distributable earnings 2 444 1 967 4 232

Total dividend 2 2 444 1 967 4 232

Taxable dividend (interim) 2 444 1 967 1 967Taxable dividend (special interim) 1 058Taxable dividend (final) 1 207

Shares Shares SharesTotal shares in issue at the end of year 2 731 427 532 2 330 921 688 2 711 056 264Treasury shares (28 565 013) (30 687 644) (30 631 827)

Total shares in issue at the end of year (excluding treasury shares) 2 702 862 519 2 300 234 044 2 680 424 437Weighted average number of shares in issue 2 697 710 851 2 279 099 073 2 359 724 314

Cents Cents Cents

Dividend per share 89,5 84,4 173,4

Six months ended 31 December 89,5 84,4 84,4Three months ended 31 March 44,5Six months (FY15: three months) ended 30 June 44,5

Basic earnings per share 3 118,25 146,07 294,74Diluted earnings per share 3 117,54 145,14 292,68Headline earnings per share 4 59,72 71,21 149,42Diluted headline earnings per share 59,36 70,75 148,38


STATEMENT OF FINANCIAL POSITION

Unaudited Unaudited Audited

31 December 31 December 30 June 2015 2014 2015 Rm Rm Rm

ASSETS Non-current assets 112 922 84 214 103 187

Fair value of investment property for accounting purposes 100 295 69 438 90 917Straight-line lease income adjustment 2 325 2 127 2 118

Fair value of property assets 102 620 71 565 93 035Equity-accounted investments 6 223 5 626 6 464Listed investments 452 5 262 380Intangible assets 2 532 1 210 2 580Equipment 8 9 9Long-term loans granted 611 516 614Derivative assets 476 26 105

Current assets 3 400 2 402 3 216

Investment property classified as held for sale 394 465 539Current portion of long-term loans granted 1 – 467Trade and other receivables 2 169 1 245 1 705Cash and cash equivalents 836 692 505

Total assets 116 322 86 616 106 403

EQUITY AND LIABILITIES

Shareholders' interest 67 799 52 927 63 369

Share capital 41 635 30 537 41 132Treasury shares (603) (648) (646)Foreign currency translation reserve 2 970 1 160 1 072Non-distributable reserve 21 353 19 911 20 604Retained income 2 444 1 967 1 207

Non-controlling interest 6 008 4 321 4 713

Total equity 73 807 57 248 68 082Non-current liabilities 32 796 24 962 30 372

Non-current financial liabilities 30 369 23 424 28 755Deferred taxation liability 2 427 1 538 1 617

Current liabilities 9 719 4 406 7 949

Trade and other payables 2 590 1 610 1 802Current portion of non-current financial liabilities 6 860 2 596 5 930Taxation payable 33 17 31Linked unitholders for distribution 236 183 186

Total equity and liabilities 116 322 86 616 106 403

Cents Cents Cents

Net asset value per share 2 508 2 301 2 364

Tangible net asset value per share which excludes intangible assets and deferred tax 2 505 2 315 2 328

STATEMENT OF CASH FLOWS

Unaudited Unaudited Audited 6 months 6 months 12 months 31 December 31 December 30 June 2015 2014 2015 Rm Rm Rm

Cash generated from operations 4 077 2 917 5 911Finance and other investment income 109 232 497Finance costs (1 203) (994) (2 055)Taxation paid (35) (17) (54)Capital items 1 (9) (38)Distribution to shareholders/unitholders (1 446) (2 037) (5 618)

Net cash inflow/(outflow) from operating activities 1 503 92 (1 357)Net cash outflow from investing activities (1 577) (898) (2 283)Net cash inflow from financing activities 334 1 136 3 781

Net increase in cash and cash equivalents 260 330 141Translation effects on cash and cash equivalents of foreign operation 71 (13) (11)Cash and cash equivalents at beginning of year 505 375 375

Cash and cash equivalents at end of period 836 692 505


STATEMENT OF CHANGES IN EQUITY

Foreign currency Non- Non- translation distributable Retained controlling Share Treasury reserve reserve income Shareholders' interest Total capital shares (FCTR) (NDR) (RE) interest (NCI) equity Note Rm Rm Rm Rm Rm Rm Rm Rm

Audited balance at 30 June 2014 29 436 (682) 1 506 17 743 1 892 49 895 4 180 54 075

Total comprehensive income – profit after taxation – – – – 3 329 3 329 475 3 804

Total comprehensive income – other comprehensive income – – (359) 774 – 415 (197) 218

Transactions with owners recognised directly in equity:

Shares issued 1 101 – – – – 1 101 – 1 101

Cash adjustment on business acquisitions – – – – 4 4 – 4

Dividends received on treasury shares – – – – 26 26 – 26

Transfer non-distributable items to NDR – – – 1 389 (1 389) – – –

Share-based payment transactions – 34 – 26 – 60 – 60

Rights issue and acquisitions – GOZ – – 13 – (21) (8) 51 43

Transfer to NDR reserves with NCI – – – (21) 21 – – –

Dividends declared – NCI – – – – – – (188) (188)

Dividends declared – – – – (1 895) (1 895) – (1 895)

Unaudited balance at 31 December 2014 30 537 (648) 1 160 19 911 1 967 52 927 4 321 57 248


Total comprehensive income – other comprehensive income – – (94) (728) – (822) (53) (875)


Shares issued 10 595 – – – – 10 595 – 10 595

Acquisition of subsidiary with NCI – – – – – – 64 64

Dividends received on treasury shares – – – – 40 40 – 40

Transfer non-distributable items to NDR – – – 1 401 (1 401) – – –

Share-based payment transactions – 2 – 46 – 48 – 48

Rights issue and acquisitions – GOZ – – 6 – (26) (20) 93 73

Transfer to NDR reserves with NCI – – – (26) 26 – – –


Dividends declared – – – – (3 025) (3 025) – (3 025)

Audited balance at 30 June 2015 41 132 (646) 1 072 20 604 1 207 63 369 4 713 68 082


Total comprehensive income – other comprehensive income – – 1 898 – – 1 898 1 025 2 923


Shares issued 503 – – – – 503 – 503

Dividends received on treasury shares 2 – – – – 13 13 – 13

Transfer non-distributable items to NDR – – – 759 (759) – – –

Share-based payment transactions – 43 – (10) – 33 – 33

Rights issue and acquisitions – GOZ – – – – – – 8 8


Dividends declared 2 – – – – (1 207) (1 207) – (1 207)

Unaudited balance at 31 December 2015 41 635 (603) 2 970 21 353 2 444 67 799 6 008 73 807


SEGMENTAL ANALYSIS

South Africa

Total as V&AOther

joint Retail Office Industrial Australia reported Waterfront ventures Total Rm Rm Rm Rm Rm Rm Rm Rm

Statement of profit or loss and other comprehensive income extracts – 31 December 2015 Revenue, excluding straight-line lease income adjustment 1 437 1 710 600 942 4 689 294 2 4 985Property expenses (357) (394) (131) (116) (998) (83) (1) (1 082)

Segment results 1 080 1 316 469 826 3 691 211 1 3 903

Material non-cash items: Fair value adjustment on investment property 404 315 190 489 1 398 – 6 1 404Fair value adjustment on investment property – NCI – – – 261 261 – – 261

Total fair value 404 315 190 750 1 659 – 6 1 665

South Total as V&AOther

joint Africa Australia reported Waterfront ventures Total Rm Rm Rm Rm Rm Rm

Further extracts of statement of profit or loss and other comprehensive income Other operating expenses and income (111) (42) (153) (7) (1) (161)Finance costs (1 005) (212) (1 217) – (1) (1 218)Finance and other investment income 324 3 327 8 – 335

South Africa

Total as V&AOther


Statement of financial position extracts at 31 December 2015 Investment property Opening balance 1 July 2015 28 213 32 901 10 436 22 024 93 574 6 761 631 100 966

Acquisitions – other – 192 384 1 253 1 829 – – 1 829Developments and capital expenditure 295 649 302 335 1 581 266 – 1 847Disposals – (555) (71) – (626) – (413) (1 039)Foreign exchange gain – – – 4 997 4 997 – – 4 997Fair value adjustments 404 315 190 750 1 659 – 6 1 665

Fair value of total property assets – 31 December 2015 28 912 33 502 11 241 29 359 103 014 7 027 224 110 265

Fair value of long-term property assets 28 912 33 210 11 139 29 359 102 620 7 027 224 109 871

Investment property classified as held for sale – 292 102 – 394 – – 394



Further extracts of statement of financial position Intangible assets 2 532 – 2 532 – – 2 532

Opening balance 1 July 2015 2 580 – 2 580 – – 2 580Amortisation for the year (48) – (48) – – (48)

Listed investments 452 – 452 – – 452Trade and other receivables 1 688 481 2 169 40 1 2 210Cash and cash equivalents 378 458 836 52 3 891Trade and other payables (1 384) (1 206) (2 590) (116) – (2 706)Financial liabilities (25 734) (11 495) (37 229) (196) (392) (37 817)

Nominal value – interest-bearing liabilities (24 916) (11 424) (36 340) (196) (392) (36 928)Fair value adjustments (718) (71) (789) – – (789)Foreign translation differences (100) – (100) – – (100)


South Africa

Total as V&A Other


Statement of profit or loss and other comprehensive income extracts – 31 December 2014 Revenue, excluding straight-line lease income adjustment 872 1 290 563 918 3 643 263 3 3 909Property expenses (237) (292) (119) (108) (756) (75) (1) (832)

Segment results 635 998 444 810 2 887 188 2 3 077

Material non-cash items: Fair value adjustment on investment property 462 322 152 583 1 519 – 17 1 536Fair value adjustment on investment property – NCI – – – 319 319 – – 319

Total fair value adjustment on total investment property 462 322 152 902 1 838 – 17 1 855



Further extracts of statement of profit or loss and other comprehensive income Other operating expenses and income (111) (44) (155) (7) – (162)Finance costs (777) (239) (1 016) (12) – (1 028)Finance and other investment income 418 4 422 1 – 423

South Africa

Total as V&A Other


Statement of financial position extracts at 30 June 2015 Investment property Opening balance 1 July 2014 15 756 24 012 9 286 20 859 69 913 5 947 315 76 175Acquisition – Acucap & Sycom 11 324 6 789 473 – 18 586 – 569 19 155Acquisition – Other – 755 21 637 1 413 25 – 1 438Developments and capital expenditure 352 1 003 530 306 2 191 309 – 2 500Disposals (115) (430) (76) (237) (858) – (272) (1 130)Foreign exchange loss – – – (1 205) (1 205) – – (1 205)Fair value adjustments 896 772 202 1 664 3 534 480 19 4 033

Fair value of total property assets – 30 June 2015 28 213 32 901 10 436 22 024 93 574 6 761 631 100 966

Fair value of long-term property assets 28 213 32 432 10 366 22 024 93 035 6 761 631 100 427

Investment property classified as held for sale – 469 70 – 539 – – 539



Further extracts of statement of financial position Intangible assets 2 580 – 2 580 – – 2 580

Opening balance 1 July 2014 1 258 – 1 258 – – 1 258Acquisition through business combination 2 978 – 2 978 – – 2 978Impairment of goodwill (1 558) – (1 558) – – (1 558)Additions during the year 4 – 4 – – 4Amortisation for the year (102) – (102) – – (102)

Listed investments 380 – 380 – – 380Trade and other receivables 1 353 352 1 705 23 – 1 728Cash and cash equivalents 253 252 505 129 3 637Trade and other payables (1 514) (288) (1 802) (102) (10) (1 914)Financial liabilities (26 130) (8 555) (34 685) (197) (502) (35 384)

Nominal value – interest-bearing liabilities (25 444) (8 367) (33 811) (197) (502) (34 510)Fair value adjustments (686) (131) (817) – – (817)Foreign translation differences – (57) (57) – – (57)

SEGMENTAL ANALYSIS (CONTINUED)



Note 1: Finance and other investment income 327 422 916

– Investment in joint venture - V&A Waterfront 198 172 368– V&A Waterfront development funding interest 19 – –

Total V&A Waterfront income 217 172 368Other finance income 100 80 203Listed investments 10 170 345

Note 2: Dividends on treasury shares

The interim dividend of R2 444 million (HY15: R1 967 million) included dividends on treasury shares of R13 million (HY15: R26 million). The net interim dividend paid by Growthpoint for accounting purposes is R2 431 million (HY15: R1 941 million).

The final dividend of R1 207 million for FY15 included dividends on treasury shares of R13 million. The net dividend paid was therefore R1 194 million.

Note 3: Basic and diluted earnings per share

The directors are of the view that the disclosure of earnings per share, while obligatory in terms of IAS 33, Earnings per Share, and the JSE Limited Listings Requirements, is not meaningful to investors as the basic profit includes fair value adjustments, as well as other non-distributable items.

The calculation of distributable earnings and the dividend per share is more meaningful.

Note 4: Headline earnings per share

In terms of Circular 2/2015, issued by SAICA, the fair value adjustment on investment property is added back in the calculation of headline earnings per share. The Circular does not make provision for the fair value adjustment on non-current financial liabilities, accounting adjustments required to account for lease income on a straight-line basis, as well as other non-cash fair value accounting adjustments that do not affect distributable earnings, to be added back.


Basic profit is reconciled to headline earnings as follows: Profit after taxation – attributable to equity holders 3 190 3 329 6 955(Bargain purchase)/Impairment of goodwill ( 2) – 1 558Realised profit on sale of listed investments – – (1 097)Add back: Net fair value adjustment – investment property (1 577) (1 706) (3 890)

Fair value adjustment, net of straight-line lease income adjustment (1 310) (1 386) (2 817)Fair value adjustment (equity-accounted investments) ( 6) (1) (486)NCI portion of fair value adjustment (261) (319) (587)

Headline earnings attributable to shareholders 1 611 1 623 3 526

Note 5: DisclosureThis announcement does not include the information required pursuant to paragraph 16A(j) of IAS 34. The full preliminary report is available at the issuers registered office and upon request.

NOTES

The Place, 1 Sandton Drive, Sandton, Gauteng, 2196, South Africa

Tel: +27 (0) 11 944 6000, Fax: +27 (0) 11 944 6005

PO Box 78949, Sandton, 2146, South Africa

Docex: 48 Sandton Square

[email protected]

WWW.GROWTHPOINT.CO.ZA

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