LISTED REAL ESTATE REPORTAPRIL 2020

LISTED REAL ESTATE REPORT APRIL 2020 1

February 2019

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During the month of March, the South African government were rightfully lauded for the urgency in which we entered the initial 21-day lockdown. This initial goodwill has dissipated over time as the economic hardships being experienced starts to weigh on the benefit of continuing with a stringent lockdown. The month also saw significant turmoil and panic across all major markets as the world attempted to assess the ramifications of the Covid-19 pandemic.

As we entered April, global markets rebounded on the expectation that economic activity will be restarted after grinding to a halt through the application of various confinements, curfews, and quarantines around the world. It is estimated these measures affected over 3.9 billion people or half of the world’s population.

In this publication we attempt to address some of the important real estate questions that have arisen from both our internal and external discussions over the last month.

HOW IS THIS CRISIS DIFFERENT FROM THE GFC?

As we attempt to tackle this question it is important to recap the reasons behind the Global Financial Crisis (GFC) of 2008. It has been well documented that the GFC arose from a situation where household debt became unsustainable as it was primarily accumulated to fund ever increasing house purchasers. As house prices began to decline, it became increasingly difficult for households to repay their debt, which led to widespread defaults where the collateral was worth significantly less than the loan extended. The situation was further exacerbated by the fact that these loan assets were pooled and sold to various financial institutions thereby increasing the magnitude and the depth of the problem. This ultimately led to widespread losses within the financial sector and required the intervention of various reserve banks.

Turning to the Covid-19 crisis, the situation and origin is materially different. As the virus began to spread throughout the world, national governments employed social distancing measures, through varying degrees of lockdown, to slow the

spread of the virus. This has effectively put the brakes on economies around the world.

In the GFC the root of the crisis was identifiable, and costs were eventually quantifiable. In this crisis while we can identify the cause, the uncertainty remains regarding what the true extent of the damage on the economy will be. In the GFC businesses over time became economically unviable as demand for their goods and services shrunk to the extent that they could no longer afford their various obligations. In the current crisis many economically viable businesses have closed temporarily which has resulted in little to no revenue over the lockdown period while expenses have remained relatively sticky. As the lockdown measures start to ease there are 2 main areas which we are monitoring closely:

• Business financial health. Many would have had to dip into their cash reserves, working capital and additional facilities to continue paying existing expenses while potentially restructuring current debt obligations. Businesses have also embarked on various cost saving initiatives which is expected to impact employment negatively. Therefore, most businesses would emerge from the lockdown in a worse financial position.

• Consumer demand as lockdown eases. As businesses have dipped into reserves to stay afloat, unfortunately this situation is also evident in households that received little to no income over the period. The extent to which consumer demand rebounds would have a material impact on our economic output over the months ahead.

While the majority of governments have employed various stimulus and protection measures to mitigate the damage caused by the closure of their economies the reality is that the true extent of the damage is only being comprehended now as economic data becomes available. Additionally, the phased approach to the opening of the economies implies that portions of economic activity will still be restricted for the foreseeable future and therefore limit the potential rebound.

COMMENTARY

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IMPACT ON DIFFERENT GLOBAL REAL ESTATE SECTORS

We have all been affected to different degrees by the economic shutdown due to the spread of the COVID-19 virus. Some are able, with the aid of technology and minimal adjustments, to continue working from home, whilst others must wait for the restrictions on movement to be lifted before being able to return to work. Businesses that can continue to operate in a decentralised manner over the internet, or other format, are better able to adapt to the new environment. Those that cannot have been dealt a severe blow by being forced to halt business activity altogether.

This phenomenon is also playing out in real estate, where different sectors are affected to different degrees. On the one end, Data Centres and Cell Towers are experiencing stable and higher demand from an increase in data streaming, e-commerce, and working from home. In contrast, most retail and hotel properties have been completely shut and the outlook for activity to return to pre-pandemic levels looks severely hampered. The Covid-19 situation has placed some tenants, especially in the retail sector, in a position where they are not able to pay rent as they have not generated revenue, nor have the necessary emergency funds to draw down to do so. In addition, the outlook for many retailers to return to profitable positions has dramatically deteriorated. Some landlords will have the ability to assist tenants with rent deferral, which can be repaid over the remaining lease term, or replace tenants with new ones able to pay rent. Unfortunately, many lower quality properties will not be able to attract new tenants and will have to rebase their rent down to keep properties occupied.

Most sectors fall in the “mixed bag” category. For example, the short term demand for industrial and logistic space might soften due to the drop in economic activity, but the long term tailwinds for the sector might be amplified by an increase in the long term adoption of e-commerce and higher inventory level requirements from businesses.

In the Office sector, most businesses might be paying their rent in the near term but will probably reduce the amount of space required in the future, depending on what degree their business is able to continue operations remotely. In a survey published by Gartner in March, 317 CFOs where asked “What percentage of your workforce will remain permanently remote post COVID who were not remote before COVID?”. The response was that 26% said 0% will remain remotely, 27% said 5%, 25% said 10%, 17% said 20%, 4% said 50% and 2% said more than 50% will remain remotely. However, it is uncertain to what degree this expected shrinkage in demand for office space will be offset by an increase in space occupied by employees for health and productivity reasons.

What is more certain is that the increased focus on employee wellbeing and health standards will continue to raise the capex

requirements (better air quality systems, touchless access, virus spread monitor systems etc.) for a sector that already has chronic high recurring capex requirements. Modern buildings and new developments will be better able to meet new standards, whilst older buildings might struggle to compete without excessive capital being spent, or not being able to upgrade their systems.

Monthly and quarterly rents are usually due on 1 April. During first quarter earnings releases most companies disclosed what percentage of April rents have been collected. The results so far are hardly surprising, in the US Industrial companies reporting 98% of rent collected, Office 93%, Free-standing retail 70% and Shopping Centres 47%. Most of the Office rent not collected is from tenants operating in the retail podiums at the base of office buildings. In Free-standing retail many tenants are essential services like grocery stores, pharmacies, or banks as opposed to more discretionary type retailers in Shopping Centres. We are monitoring rent collections closely, not just in the short term, but also gauging what the prospects are in the long term.

KEY CONSIDERATIONS THAT WILL DIFFERENTIATE REAL ESTATE IN THE FUTURE

Below we look at some of the considerations we view as important in our investments that will enable them to outperform their peer group over the short to long term.

• Sustainable balance sheets. In times of distress, companies with high leverage, material mismatches in foreign assets/liabilities, significant near-term debt maturities and poor cashflow generation will have higher volatility. Entering any crisis in a highly levered position runs the significant risk of material dilution from equity raises if the quantum of debt relative to a declining asset base and/or the serviceability of the existing debt becomes unsustainable.

• Strong management teams. In these turbulent times it is important to have management at the helm that are executing on a realistic strategy for the betterment of the company they lead. The current environment puts enormous pressure on management teams and we believe strong management should be able to step back, assess the situation to the best of their ability and implement the right course of action for the company regardless of how difficult it may be.

• Strategic capital allocation. Access to new capital will be limited over the short term as banks and equity providers grapple with the uncertainty of the situation. In an environment with limited access to capital, every cent counts and should be allocated on a risk adjusted basis considering current market conditions.

• Structural and social change. The implementation of social distancing has placed significant near-term pressure on various sub-categories which require social gathering

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to generate economic value. If and when this activity will be allowed to resume remains uncertain. While structural change in real estate is inevitable, the current crisis has however accelerated this evolution including the movement from physical to online retailing. Ultimately the value of real estate is linked to the economic benefit it is able to generate within its environment and the changes we are witnessing will affect that generation over the short to medium term. It is therefore important to recognise, quantify and appropriately position our investments for these expected changes.

SOUTH AFRICAN REAL ESTATE REVIEW

April saw the start of a new round of results releases and while the period under review (February 2020) occurred before the lockdown the market keenly anticipated the commentary from management teams regarding their experiences post the period end.

Octodec reported its HY’20 results during the month with distributable earnings of 97c per share, a decline of 5.5% year on year. Net property income increased by 0.8% while administrative and finance expenses continued to increase at a faster pace. While the period under review was prior to the lockdown, the results were reflective of the weak property fundamentals in the South African market. Octodec decided not to declare an interim dividend and deferred the decision to the end of the year when they finalize their annual audited results.

This is consistent with our expectation that over the short-term real estate companies will attempt to pay out as little dividends as possible and as late as possible. We fully support these measures as balance sheet preservation is of utmost importance in these uncertain times. The consequence of

retaining the dividend results in a tax burden on REITS and the Property Industry Group have made a submission to the relevant government departments in this regard. Whether or not they receive the tax dispensation, we still believe that companies should be conservative in the current market.

As previously highlighted the Covid-19 impact is expected to weigh heavily on the retail sector. In March Edcon indicated that it is under considerable financial strain due to its inability to trade. As the new alert levels were introduced by government and apparel retailers prepared to open their stores it was announced that Edcon will be filing for business rescue. Edcon has opened its stores along with other national retailers as we entered level 4 restrictions, however it will now be under the guidance of the appointed business rescue practitioners (see table below). Edcon rentals make up c.1% of the benchmark’s (ALPI) total revenue. Important to note that a few SA REITs have elected to only distribute 59.1% of Edcon rentals since March 2019, whilst some funds have elected to recognise the full rental and capitalise the 40.9% rental concession for an equity stake in Edcon. This is reflected in the table below which summarises the potential impact of Edcon on selected companies and how they have historically adjusted for Edcon rentals.

A newly formed Clothing Retailer (CR) Group representing the 5 biggest clothing retailers in South Africa (Pepkor, TFG, Truworths, Mr Price and Woolworths) remain in discussions with the Property Industry Group regarding the payment of rental during the lockdown period. The Property Industry Group has now proposed that the national government act as the mediator to avoid a protracted process. While the two parties have moved closer in terms of the appropriate rental discount, the main area of contention relates to the CR Group’s refusal to pay their share of rates and taxes.

Local Offshore Retail Office Industrial Other By income By GLA

L2D 100% 0% 62% 25% 0% 13% Not disclosed 4% 4% 4% Upfront ✖

HYP 74% 26% 99% 1% 0% 0% 7% 8% 4% 3% Build-up ✔️

RES 68% 33% 100% 0% 0% 0% 6% Not disclosed 3% 2% Build-up ✔️

RDF 76% 24% 44% 35% 20% 1% 2% 2% 2% 1% Both ✔️ and ✖

ATT 85% 15% 52% 38% 8% 2% 3% 3% 1% 1% Build-up ✔️

VKE 48% 52% 92% 3% 3% 2% 3% 4% 3% 1% Build-up ✖

GRT 76% 24% 39% 40% 17% 4% Not disclosed 2% 2% 1% Upfront ✖

EMI 90% 10% 49% 28% 16% 7% 1% 1% 1% 1% Didn’t participate ✖

FIF 62% 38% 35% 10% 55% 0% 2% 6% 1% 1% Build-up ✔️

OCT 100% 0% 34% 16% 7% 44% 1% 1% 1% 1% Build-up ✔️

Earnings reducedCounterSA exposure post

earnings reductionLocal vs offshore split SA portfolio split Edcon (total SA portfolio) Edcon

weightedEdcon equity deal

Source: Anchor Stockbrokers – Listed monthly update April 2020

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Despite the weak macro backdrop, a divergence in performance between well located dominant retail assets and secondary non-dominant assets will continue to play out. Retail exposed funds continue to be the hardest hit year to date as the majority of the tenants within the malls were closed during the lockdown. However, we believe that all sub-sectors will be impacted to varying degrees over the medium to long term due to the permanent economic destruction.

OUTLOOK:

The sector is trading at a significant discount to its latest net asset value which indicates that the market is pricing in a material decline in direct property valuations, however the long term impact remains uncertain and would be determined by the economic consequence of the lockdown and the changes to future demand/supply fundamentals. The SARB has also continued to reduce rates which is a welcome relief to consumers and businesses.

The lockdown and adoption of a phased approach to the opening of the economy has influenced our expectations going forward. We have adjusted our model assumptions to reflect short term rental discounts/concessions and higher vacancies while also adjusting our long-term rental growth forecasts and increased our required rate of returns where appropriate. Despite our adjustments and the small rebound in April, the sector continues to screen attractively. We still expect volatility over the short to medium term as more information is released regarding the impact of Covid-19 and the success of the various mitigation strategies being implemented. At this stage we expect many funds to either reduce, defer, or not pay dividends to meet short term cashflow requirements. This will be driven by the ability or affordability to pay and potential rules relaxation by regulators regarding tax and REIT status.

CATALYST’S INVESTMENT APPROACH AMID COVID-19:

In these turbulent times it is important to reiterate that our investment approach has not changed. What has changed are the various assumptions and inputs into our models.

At Catalyst our investment methodology, regardless of market conditions, focusses on risk-adjusted returns, and not just absolute returns. What this means is that, in addition to building discounted cash flow models for all our stocks, we spend an extensive amount of time building up our required rate of return for each individual stock in our core universe based on our assessment of risk. This required rate of return takes multiple factors into consideration, such as risk and economic sensitivity of earnings, asset quality, debt, quality of management to name but a few. Another key component of real estate investing is underwriting the risk that cash flows from contractual lease agreements will be different from what is

agreed. To this end, where appropriate, we adjust the expected cashflows to account for this risk. On the debt front, we look at multiple metrics – not only the level of debt, but also the nature of the debt, the duration etc. We are very punitive on companies that do not score well on these metrics and require an even higher return from them to compensate for the additional risk involved. The result is that our portfolio, not only in times of crisis but always, will comprise stocks with good capital structures and strong balance sheets, owning higher quality assets, and with management teams who have a track record of making good capital allocation decisions.

CONCLUSION:

As we navigate these challenging markets, we reaffirm our commitment to you, our clients, that we will continue to manage your money in the prudent and consistent way we always have over the past 19 years. We will continue to follow our tried and tested investment methodology, which has weathered numerous market crises, in order to maximize your risk-adjusted, real estate returns. This is not the first crisis we have managed through and will most certainly not be the last. Be safe, and please feel free to reach out to us for any further questions.

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Region April 2020 Return %

(USD)

April 2020Return %

(Rand)

YTDReturn %

(USD)

YTDReturn %

(Rand)

Global Investors Index (NTR) 6.87% 11.04% -23.76% 0.86%

North America 8.32% 12.54% -23.37% 1.38%

Europe 3.42% 7.45% -24.54% -0.17%

Asia ex Australia 3.28% 7.31% -20.62% 5.01%

Australia 26.43% 31.36% -34.11% -12.83%

SA Listed Property Index 3.0% 7.00% -58.07% -44.52%

INFORMATION SOURCE AND METHODOLOGY

Data: Bloomberg unless stated otherwise Calculations: Catalyst Fund Managers Clean Price: Adjusts the closing price for distribution accrued since last distribution dateRolled yield: Time weighted current 12 month historic distribution divided by the clean priceDebt %: These are loan to value numbers. Date: All data taken on 1 May 2020 Universe: Companies included are only those companies that form part of the Catalyst core universe

Asset Class MTD YTD 12 months

SA Listed Property1 7.00% -44.52% -45.98%

All Property Index2 5.68% -45.12% -47.09%

SA Equities3 13.98% -10.39% -10.78%

SA Cash4 0.52% 2.22% 7.14%

SA Bonds5 3.92% -5.14% 0.06%

Source: Catalyst Fund Managers, RMB Credit Research, Anchor StockbrokersNote: 1 - SA Listed Property Index (J253T), 2 – All Property Index (J803T) 3 - All Share Index, 4 – Stefi, 5 - All Bond Index

Source: Standard & Poors, UBS Securities, I Net Bridge

SA PERFORMANCE

Country Market Cap USD Million

10 Year Govt Bond Yield

Global Div Historical Yield

Debt % Local Currency

US 726 347 0.59% 4.23% 31.55%

Canada 38 173 0.55% 3.28% 34.40%

Total North America 764 519 0.59% 4.19% 31.68%

UK 62 159 0.23% 3.29% 26.61%

Continental Europe 195 020 -0.29% 4.74% 32.48%

Total Europe 257 179 -0.15% 4.35% 35.59%

Japan 126 376 -0.02% 3.39% 35.46%

Australia 27 828 0.87% 8.39% 31.39%

Hong Kong 56 485 1.42% 4.59% 13.50%

Singapore 43 677 0.90% 5.75% 35.56%

Total Asia 254 365 0.46% 4.67% 31.59%

Total 1 276 064 0.43% 4.30% 32.40%

GLOBAL REVIEW

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Total Return Jan Feb Mar Apr YTD

SA Listed Property Index (SAPY) -3.06% -15.69% -36.57% 7.00% -44.52%

All Property Index (ALPI) -3.30% -15.68% -36.32% 5.68% -45.12%

ACCPROP -2.84% -22.73% -68.07% 71.05% -58.99%

ACSION -7.69% 0.00% 0.00% 6.67% -1.54%

ARROWHEAD A 3.98% -3.83% -15.42% -5.88% -20.40%

ARROWHEAD B -0.26% -21.64% -39.39% -17.22% -60.79%

ATLEAF 4.00% -4.94% -21.71% 13.26% -12.33%

ATTACQ -6.64% -16.15% -46.08% 15.60% -51.20%

BALWIN -10.57% 6.06% -25.14% -17.56% -41.46%

CAPCO -0.37% -17.06% -8.69% 4.27% -21.32%

CAPREG -14.95% -16.48% -46.97% 13.90% -57.10%

DELPROP -5.63% -37.31% -35.71% 48.15% -43.66%

DIPULA-A -1.00% -10.61% -22.60% -22.04% -46.60%

DIPULA-B -21.43% -25.45% -30.24% 18.18% -51.71%

EMIRA -3.03% -8.12% -42.65% 2.70% -47.53%

EQUITES -0.70% -13.04% -4.17% -0.60% -17.75%

EXEMPLAR 7.78% 0.00% -5.15% -2.17% 0.00%

FAIRVEST -4.08% -6.91% -28.57% 8.92% -30.54%

FORTRESS-A -4.21% -12.47% -34.54% 0.20% -45.00%

FORTRESS-B -6.38% -33.24% -58.22% 39.29% -63.63%

GLOBE TRADE CENTRE 0.00% 0.00% 0.00% -10.53% -10.53%

GRIT REAL 7.14% -3.09% -14.58% 0.08% -11.24%

GROWTHPOINT -4.61% -16.55% -26.88% 17.95% -31.34%

HAMMERSON -18.24% -10.80% -60.68% -4.72% -72.68%

HERIOT 4.55% 0.00% 0.00% 0.00% 4.55%

HOSPITALITY-B -1.45% -25.20% -45.63% 44.59% -42.05%

HYPROP -3.89% -17.15% -57.43% 0.00% -66.10%

IAPF 4.02% -8.39% -14.17% 8.76% -11.05%

INDLU 0.00% -12.82% -17.35% -9.25% -34.62%

INTUPROP -45.05% -31.40% -58.05% 26.26% -80.03%

INVESTEC PROPERTY FUND -5.02% -17.51% -40.38% 19.91% -43.99%

LIBERTY 2D 2.69% -21.51% -3.76% 17.53% -8.84%

LIGHTHOUSE 1.15% -9.09% -23.75% 19.67% -16.09%

MAS 3.87% -16.43% -33.83% 5.50% -39.41%

NEPI ROCK -0.27% -7.69% -31.46% 6.53% -32.78%

OCTODEC -0.59% -19.07% -36.92% -19.13% -58.96%

POLSKA PROP 1.34% -8.52% -61.01% -15.32% -69.39%

PUTPROP -20.00% -5.00% 10.53% 2.00% -14.32%

REBOSIS 31.25% -26.19% -45.16% 58.82% -15.63%

REBOSIS A -33.33% -70.38% -22.08% -30.00% -89.23%

REDEFINE -4.89% -24.48% -56.35% -4.22% -69.97%

RESILIENT -4.32% -11.66% -41.67% 12.47% -44.55%

RI PLC 7.08% -10.44% -36.80% -8.75% -44.70%

SA CORPORATE -5.23% -28.28% -45.67% 6.19% -60.78%

SAFARI 15.90% -4.65% -19.51% -11.82% -21.56%

SCHROEDERS 5.11% -3.64% -22.55% 5.63% -17.13%

SIRIUS 10.38% -9.74% -10.23% 11.88% 0.06%

SPEAR REIT -2.46% -6.32% -36.07% -4.57% -44.25%

STENPROP 11.93% -5.66% -14.00% 1.86% -7.50%

STOR-AGE -3.25% -9.79% -3.49% 1.61% -14.41%

TEXTON -9.09% -12.00% -36.36% -7.86% -53.09%

TOWER -7.33% -17.74% -48.70% 19.44% -53.29%

TRADEHOLD -2.34% -18.73% 2.63% -4.62% -22.31%

TRANSCEND 7.37% 0.00% 5.40% -8.57% 3.47%

VUKILE -7.73% -18.10% -51.71% -23.59% -72.11%

SA INDIVIDUAL SHARE PERFORMANCE

DataCalculations and forecast estimates# Suspended / Delisted / Not yet listed

Information Source & MethodologyData: IRESS unless stated oterwiseCalculation: Catalyst Fund Managers

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SA SECTOR SNAPSHOTRsa Long Term Guilt (RLRS) 10.15%

ShareMarket Capitalisation

Close

Historic Rolled Yield

(Sapy) Nav

Premium Or Discount Of Clean

Price To Nav Debt %

Combined Market Cap Weighted Index 320 974 770 775 11.70%

NEPI ROCK 46 808 527 071 7 990 12.1% 15 115 -48.28% 32.0%

GROWTHPOINT 42 103 374 601 1 393 9.7% 2 518 -46.54% 38.2%

CAPCO 32 059 505 807 3 779 1.7% 7 331 -48.51% 15.0%

GLOBE TRADE SA 15 639 730 480 3 221 4.2% 3 705 -25.63% 48.0%

SIRIUS 16 624 300 834 1 601 4.5% 1 637 -3.89% 32.5%

REDEFINE 13 150 525 880 227 17.1% 884 -79.33% 43.9%

HAMMERSON 12 383 304 786 1 616 33.4% 13 557 -88.66% 45.0%

RESILIENT 14 400 723 831 3 599 8.3% 6 878 -48.96% 27.5%

FORTRESS A 12 058 943 141 1 012 8.9% 2 035 -51.07% 33.3%

EQUITES 9 824 301 801 1 645 9.4% 1 737 -9.71% 27.3%

IAPF 7 971 327 015 1 304 8.2% 1 604 -21.75% 26.8%

MAS 7 614 695 829 1 075 10.1% 2 560 -57.76% 33.7%

VUKILE 5 173 186 057 541 15.4% 2 000 -74.48% 40.8%

STENPROP 6 196 498 457 2 190 6.6% 3 383 -36.50% 38.2%

POLSKA PROP 4 766 720 658 525 41.5% 2 726 -86.03% 50.0%

RDI PLC 5 077 213 567 1 335 6.1% 4 370 -71.90% 46.4%

INVESTEC PROP 6 640 577 163 825 15.3% 1 810 -57.34% 37.3%

STOR-AGE 5 034 410 581 1 265 9.2% 1 173 7.09% 27.3%

HYPROP 4 861 995 804 1 900 7.6% 9 107 -83.86% 34.2%

LIBERTY 2D 5 178 127 004 570 8.1% 965 -41.74% 16.0%

GRIT REAL 4 114 224 453 1 301 18.6% 2 777 -54.54% 40.6%

LIGHTHOUSE 4 436 867 993 730 6.5% 846 -8.39% 31.0%

ATTACQ 4 059 307 643 541 9.5% 2 141 -75.89% 39.1%

EMIRA 3 381 657 088 647 13.7% 1 787 -65.05% 35.1%

SA CORPORATE 3 036 826 800 120 25.5% 477 -79.54% 37.9%

TRADEHOLD 2 430 523 101 930 31.0% 2 594 -73.35% 61.2%

ARROWHEAD B 1 861 097 260 149 46.6% 698 -82.36% 40.5%

ATLEAF 2 485 042 658 1 315 18.1% 2 444 -50.89% 48.0%

CAPREG 2 384 138 374 2 295 29.1% 8 482 -85.12% 46.0%

OCTODEC INV LTD 1 677 044 471 630 12.0% 2 761 -80.49% 38.5%

FORTRESS B 2 558 118 486 234 40.1% 1 008 -78.48% 76.4%

DIPULA A 1 413 315 473 534 7.2% 1 025 -52.18% 40.6%

HOSPITALITY-B 2 549 660 053 441 7.8% 1 741 -75.48% 19.0%

INTUPLC 1 693 800 304 125 2.8% 4 934 -97.47% 57.6%

FAIRVEST 1 262 475 547 124 8.3% 234 -47.84% 34.0%

BALWIN 1 019 935 999 216 14.5% 593 -65.55% 38.0%

SPEAR REIT 1 117 366 509 543 18.1% 1 164 -57.26% 38.0%

SAFARI 904 503 707 291 9.9% 721 -61.12% 33.0%

INDLU 871 582 564 255 27.8% 903 -75.20% 33.6%

TRANSCEND 837 726 675 640 9.9% 977 -35.61% 47.6%

TOWER 730 031 741 215 22.5% 931 -77.20% 33.7%

ARROWHEAD A 501 749 264 800 15.2% 990 -23.45% 40.5%

TEXTON 485 126 128 129 9.1% 605 -80.11% 44.9%

ACCPROP 649 040 977 65 26.2% 781 -92.22% 38.3%

DIPULA B 447 285 234 169 19.5% 1 025 -86.72% 40.6%

DELPROP 285 691 887 40 72.2% 929 -96.69% 44.3%

REBOSIS 186 068 293 27 0.0% 829 -96.53% 60.9%

REBOSIS A 26 571 725 42 0.0% 1 365 -96.92% 60.9%

Data IRESS unless stated otherwise

Calculations and forecast estimates Catalyst Fund Managers

Rolled yield Time weighted current 12 month historic distribution divided by the clean price.

NAV Net Asset Value adjusted for deferred tax and intangibles calc. as at the last reported period. Due to market movements and post balance sheet changes,

NAV reported may not be a true representation of actual NAV at month end.

Debt % Balance sheet long term interest bearing debt / income earning property assets, adjusted for see-through debt where information provided calc. as at the last reported period.

Catalyst Fund Managers (Pty) LtdTel: +27 21 657 5500 | Fax: +27 21 683 75794th Floor Protea Place, Protea Road,Claremont, 7708 Cape Town, South AfricaPO Box 44845, Claremont 7735 Cape Town, South Africa

An Authorised Financial Services Provider

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The information contained in this document is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of Catalyst Fund Managers. The opinions expressed are in good faith and while every care has been taken in preparing this document, Catalyst Fund Managers makes no representations and gives no warranties of whatever nature in respect of this document, including but not limited to the accuracy or completeness of any information, facts and/or opinions contained therein. Catalyst, its subsidiaries, the directors, employees and agents cannot be held liable for the use of and reliance of the opinions, estimates, forecasts and findings in this document.

Past performance is not a reliable indicator of future results, prices of investments and the income from them may fall as well as rise. Investments in equities are subject to market risk and, potentially, to exchange rate risk. This document is for information only and does not constitute advice or solicitation for funds.

IMPORTANT INFORMATION

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