ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2019 1 - PowerPoint PPT Presentation

ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 30 JUNE 2019

1 Strategy in Action 2 Group Salient Features AGENDA 3 Financial Results GOZ 4 International Investments Globalworth RSA 5 South African Portfolio Update V&A Waterfront 6 Capital Management 7 Conclusion 8 Annexures 2

STRATEGY IN ACTION

Internationalisation � 30.3% of property assets, by book value, located offshore � 23.3% of EBIT from offshore STRATEGY � Additional R1.3bn (AUD131m) investment in GOZ IN ACTION � Consolidation of GPRE into GWI and an additional R241.6m (EUR15m) invested into GWI Optimising & streamlining RSA Portfolio � 14 individual asset sales in excess of R2.9bn with a further 7 assets of R325.4m held for sale Introducing new revenue streams 1. Trading & Development: � Trading profits of R61.5m earned � Third party development fees of R13.0m earned � Good pipeline of opportunities 2. Funds Management - AUM of R10.0bn assuming all current transactions conclude Growthpoint Investec Africa Properties - GIAP � − USD212.0m should be fully invested by the end of the calendar year − USD32.5m drawn down for the acquisition of Achimota Mall in Ghana − USD62.5m drawn down for the acquisition of Manda Hill in Zambia post FY19 � Growthpoint Healthcare Property Holdings - GHPH − R2.6bn portfolio of four hospitals and one medical chambers − Attracted R700.0m in investment from third parties − Developments and extensions to Hillcrest and Gateway hospitals for c. R100.0m − Development of Head and Neck hospital in Pretoria due for completion in April 2020 − Significant pipeline of both acquisitions and greenfield developments 4

GHPH Other Growthpoint Shareholders (GRT) 100% 27.1% 72.9% Property management Growthpoint Management fee of 1.5% of rent collected = R4.7m for Services (GMS) FY19 GHPH Asset management fee Growthpoint Healthcare Net rental of 1.25% of GAV 100% received of Property Management Company = R32m for FY19 R210m for FY19 GRT NCI 5 assets - R2.6bn GHPH (72.9%) (27.1%) Rm Rm Rm Rent net of collection fee 210.0 153.0 57.0 13% total return Asset management fee (32.0) (23.0) (9.0) delivered to GHPH shareholders for FY19 NPI 178.0 130.0 48.0 Receipt of asset and property management fee on consolidation of GMS 36.7 Total to GRT from GHPH 166.7 5

GROUP SALIENT FEATURES

GROUP SALIENT FEATURES 5.3% increase in distributable income from FY18 to R6.4bn 4.6% distribution growth from FY18 to 218.1 cents per share 4.9% increase in group property assets from FY18 to R139.4bn Group LTV 36.4% vs. 35.2% at FY18, which reduces to 35.1% post the GOZ equity raise 0.7% decrease in group NAV from FY18 to 2 539 cents per share 7

FINANCIAL RESULTS

CONSOLIDATED DISTRIBUTION CALCULATION FY19 FY18 INCREASE/ Rm Rm (DECREASE) Gross property income 11 388 10 976 3.8% RSA 8 312 8 221 1.1% GOZ 2 761 2 533 9.0% Healthcare 240 222 8.1% Trading & Development (1) 75 - 100.0% Property expenses (2 635) (2 366) 11.4% RSA (2 181) (1 976) 10.4% GOZ (424) (359) 18.1% Healthcare (30) (31) (3.2%) Net property income 8 753 8 610 1.7% Other operating expenses (467) (442) (5.7%) RSA (294) (309) (4.9%) GOZ (141) (128) 10.2% Healthcare (32) (5) 540.0% Net property income after operating expenses 8 286 8 168 1.4% Finance costs (2 603) (2 574) 1.1% RSA (2 033) (2 027) 0.3% GOZ (570) (547) 4.2% Other income 1 352 1 163 16.2% Investment income from V&A Waterfront (2) 678 592 14.4% Investment income from GWI & GPRE 512 386 32.6% GPRE capital raising fee - 35 (100.0%) Other finance income (3) 130 145 (10.3%) 32 Funds management income 5 540.0% Adjustment for NCI, foreign exchange profit/(loss) and normal taxation (605) (649) (6.8%) FY19 distributable income and dividend 6 430 6 108 5.3% 1. Trading profits on the sale of Pine Industrial, 50% of Runway Park and Bakers Transport Samrand. Third party development fees from Stor-Age and Bakers Transport Cato Ridge. 2. Includes R3.4m (FY18: R8.8m) interest on V&A Waterfront development funding, as well as R35m on residential sales. 3. FY18 includes antecedent dividends of R33m and income from Stenham of R19m, which did not reoccur in FY19. 9 * Average exchange rate at R10.15/AUD (FY18: R9.97/AUD) for GOZ.

DISTRIBUTABLE INCOME GROWTH BOOSTED BY STRATEGIC THRUSTS FY19 Distributable Income Growth RSA (0.2%) Trading & Development 1.1% Healthcare (1) (0.6%) Fund Management 0.4% V&A Waterfront 1.5% GOZ 2.0% GWI & GPRE 1.6% Underwriting fee GPRE capital raise (2) (0.5%) 5.3% 1. Healthcare decreased due to third party investment and Growthpoint’s 72.9% ownership. 2. Earned in FY18 but not in FY19. 10

CONSOLIDATED BALANCE SHEET (EXTRACTS) FY19-FY18 FY19 FY18 INCREASE/ Rm Rm (DECREASE) Property portfolio 117 009 112 227 4.3% RSA (1) 78 304 78 634 (0.4%) GOZ (2) 38 705 33 593 15.2% Equity Investments 15 515 15 096 2.8% Investment in V&A Waterfront (50%) 7 583 7 549 0.5% Investment in GWI (29.8%) 7 714 5 057 52.5% Investment in GPRE (3) - 2 422 (100.0%) Other Investments (Ferguson Place, GIAP , Workshop 17) 218 68 220.6% Listed investments (GOZ’s 18.2% investment in ADI) 846 801 5.6% Unlisted investment (Edcon) 96 - 100.0% Nominal borrowings (4) 49 466 47 385 4.4% RSA 35 241 35 152 0.3% GOZ (2) 14 225 12 233 16.3% Shareholders interest (NAV) 74 908 75 273 (0.5%) 1. Includes R325.4m of properties classified as held for sale (FY18: R3 180m). 2. Closing exchange rate R9.89/AUD (FY18: 10.16/AUD). 3. Consolidation of GPRE into GWI. 4. Excludes fair value adjustments. 11

INTERNATIONAL INVESTMENTS GOZ

Cost of GOZ investment R9.6bn AUD341.3m of acquisitions and vs. R19.6bn market value AUD45.2m of disposals Post FY19 investment in GOZ 62.2% Completed 2 significant equity raises which were oversubscribed 86.0% of properties located on raising AUD309m in total Eastern Seaboard GOZ Portfolio split: Reduced gearing by 380bps to Office 69.0% and Industrial 31.0% 30.1% post the June 2019 AUD174m equity raise Portfolio occupancy 98.0% Free float has increased 3.3% WARR to c. AUD1.3bn 5 year WALE AUD353m development pipeline Average lease incentives of 10.0% vs. 17.0% for FY18 Like–for-like portfolio valuation growth of 10.0% 76.0% of debt fixed for 5.6 years at 3.7% 13

INTERNATIONAL INVESTMENTS GWI

6 acquisitions EUR574m in Poland since Cost of GWI investment R7.1bn vs. R8.1bn market value June 2018 including Warsaw 29.8% investment in GWI Trade Tower, Rondo, Retro Business House and Silesea Star in July 2019 Simplified structure with buy-in of minority interests in GPRE , including exchanging GRT stake into GWI shares EUR81m development pipeline in Romania GWI now owns >99% of GPRE and is in the process of RBC and first logistics unit at expropriating the minorities and delisting GPRE from GLT II, Timisoara completed the Warsaw Stock Exchange Globalworth Campus Tower 3 and Globalworth Square GWI successfully completed a office developments in EUR500.5m capital raise : Bucharest progressing well � EUR347.6m issue of new shares for cash GWI � EUR152.9m exchange for GPRE shares Portfolio Update Investment grade credit rating from 60 standing buildings all three major ratings agencies 23 in Romania and 37 in Poland including July 2019 acquisitions New remuneration structure Proforma portfolio value EUR2.8bn, Well positioned for future acquisitions up from EUR2.1bn in June 2018 following recent equity raise GLA now 1.2m² up from 0.9m² GWI EUR dividend of 57 cents in June 2018 for FY19 vs. 49 cents for FY18 Commercial occupancy 95.1% at December 2018, with 5.0 years GPRE EUR dividend of 3.7 cents weighted average lease period for FY19 vs. 6.8 cents for FY18 15

SOUTH AFRICAN PORTFOLIO UPDATE RSA PORTFOLIO UPDATE

RSA SALIENT FEATURES Over 1 258 094m² of space 70.1% renewal success rate vs. let in FY19 66.6% at FY18 Vacancies of 6.8% vs. 5.4% 36.9% LTV vs. 35.4% FY18 and at FY18 interest cover healthy at 3.8x 29.0% total expense ratio -5.3% renewal growth rate vs. (incl. group overhead) vs. -2.8% at FY18 27.5% FY18 R2.9bn of disposals and R2.7bn of development and one strategic acquisition in capital expenditure with R1.5bn the period for R36.0m of commitments Arrears still under control at Portfolio value stable at R77.7m vs. R68.5m at FY18 and R78.3bn bad debts per income statement, R18.9m vs. R17.3m at FY18 17