PRESENTATION TO MADISON PROPERTY FUND MANAGERS Pieter Prinsloo COM - PowerPoint PPT Presentation

PRESENTATION TO MADISON PROPERTY FUND MANAGERS Pieter Prinsloo

COM OMPAN PANY OVER Y OVERVI VIEW EW Listed in 1987 - excellent track record Prime shopping centres with scarcity value Market cap of R5.2 billion Investment portfolio of R6 billion Sustainable income growth & value

ASSETS Direct vs Indirect (by value) Direct 79% Indirect 21% Value Billion Direct R 4.7 Indirect R 1.3 R 6.0

ASSETS Property Investments (Direct) Offices Retail 6% 94% Value Billion Retail R 4.4 Offices R 0.3 R 4.7

ASSETS Property Investments ( Indirect ) SA Retail Hyprop owns 46% of SA Retail (Listed) VPIF 85% (Unlisted) 15% Value Billion SA Retail R 1.1 VPIF R 0.2 R 1.3

ASSETS Combined in Value VPIF 4% Offices Shopping 5% centres 73% SA Retail 18%

SHO SHOPPING CENT CENTRE RES Size Value Net Ownership Income m² Hyprop Canal Walk 131 320 R 2 240 m R 155 m 80% The Glen 51 800 R 667 m R 52 m 75.15% Hyde Park 37 121 R 782 m R 59 m 100% Rosebank Mall 33 774 R 577 m R 48 m 100% Southcoast Mall 27 642 R 117 m R 10 m 50% Value Canal Walk The Glen 51% 15% Southcoast Hyde Park 3% 18% Rosebank Mall 13%

Retail area 122 000 m² Number of stores 420 Offices 9 400 m² National tenants 73% Footcount (p a) 20 million

Retail area 51 800 m² Number of stores 152 National tenants 83% Footcount (p a) 12 million

Retail area 27 600 m² Number of stores 132 Offices 9 500 m² National tenants 57% Footcount (p a) 5 million

Retail area 34 000 m² Number of stores 116 National tenants 62% Footcount (p a) 11 million

Retail area 27 600 m² Number of stores 93 National tenants 73% Footcount (p a) 3 million

DEVEL ELOPM PMENT ENT Located in Greenstone Park Modderfontein Retail area Phase 1 50 000 m² Phase 2 15 000 m² Number of stores 75 Cost of Phase 1 R512 million Completion Oct 2008

VUNAN VUNANI PRO PROPERTY I INVE NVESTMENT FUND UND (“VP VPIF”) Transformation initiative with Vunani Properties Hyprop owns 49.8% and Vunani Properties 50.2% Focus on enterprise and skills development Unlisted PLS Company Hyprop disposed of 5 office buildings – value R174.5 million Total portfolio is 17 buildings - value R422 million

PERFORMANCE Distribution History (cents per unit) 11% average growth p a over 11 years 250 13 years of uninterrupted growth 225 200 190 163 140 150 130 126 117 108 96 100 85 77 72 50 - 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

PERFORMANCE Distribution Growth (year on year) 20% 18% 17% 18% 16% 16% 14% 13% 12% 12% 11% 10% 9% 8% 8% 8% 7% 6% 4% 3% 2% 0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

PERFORMANCE Vacancy Reduction 12 10.8 10 8.8 8 6.8 6 % vacant 3.7 4 2.7 1.7 2 0 2001 2002 2003 2004 2005 2006

PERF PERFORM RMANCE CE 7,000 Total Assets 6,000 R6 billion 5,000 4,000 3,000 2,000 1,000 - 2001 2002 2003 2004 2005 2006

PERF PERFORM RMANCE CE 7,000 Total Assets 6,000 R6 billion 5,000 Market Cap 4,000 R5.2 billion 3,000 2,000 1,000 - 2001 2002 2003 2004 2005 2006

PERFORM PERF RMANCE CE 7,000 Total Assets 6,000 R6 billion 5,000 Market Cap 4,000 R5.2 billion 3,000 2,000 Debt 1,000 R1.2 billion - 2001 2002 2003 2004 2005 2006

UNI UNIT PRI PRICE CE HI HIST STORY Hyprop Combined Unit Price 4000 3.5 times increase in unit price over 3500 5 years 3000 2500 2000 1500 1000 500 0 Oct-01 Feb-02 Jun-02 Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06

UNIT PRI UNI PRICE CE HI HIST STORY Hyprop vs PLS Index Hyprop PLS Index 4.5 Consistently outperforming the index 4 3.5 3 2.5 2 1.5 1 0.5 0 Jul-02 Nov-02 Mar-03 Jul-03 Nov-03 Mar-04 Jul-04 Nov-04 Mar-05 Jul-05 Nov-05 Mar-06 Jul-06

OVE VERALL PERF PERFORM RMANC NCE Price per unit in Oct 2001 : R10.50 Total distribution over 5 years: R8.48 per unit = income return of 16.2% p a (12.6% compounded) Price per unit in Nov 2006: R36.50 Capital growth over 5 years: R26.00 per unit = capital return of 50% p a (28.3% compounded) Total growth over 5 years: R34.48 per unit = total return of 66% p a (33.8% compounded)

BORRO ROWING NGS Debt - R1.18 billion Gearing – 20% Weighted Average Interest Rate – 9.6% Borrowing Capacity – R2 billion First property fund to use capital debt market funding

BORRO ROWING NGS Interest Rate Expiry Profile R million 300 300 300 300 295 290 10.3 % 9.1 % 9.3 % 285 283 280 275 10.0 % 270 2007 2008 2009 2010 2011 2012 2013 2014 2015 76% of debt fixed for longer periods

UNI UNITHOLDE DER PRO PROFILE Unitholders in Excess of 5% of Units in Issue Redefine 28.60% Standard Bank Group 5.20% Old Mutual Funds 6.80% Coronation Stanlib Funds Funds 7.30% 11.80%

Boar oard d Com ompos position on Independent Non-Executive Directors PF Kirchmann (Chairman) MS Aitken JR McAlpine PJ Thurling (will become alternate director from 1 December) K Sibisi (appointed from 1 December) Non-Executive Directors WE Cesman EG Dube S Shaw-Taylor (Chairman Audit committee) M Wainer LE Weil Executive Directors Pieter Prinsloo (CEO) Laurence Cohen (CFO – appointed from 1 December)

Com ompany pany Struct cture Board of Directors Asset Manager Madison Property Fund Managers Property Managers Madison Property Fund Managers, Canal Walk Management Company (Pty) Ltd, JHI Real Estate Ltd (Rosebank Mall & JHI House) Senior Management Employed by MPFM Asset Manager: Nicole Greenstone Employed by Hyprop Investments Canal Walk: Wayne Abegglen & Gavin Wood The Glen: Roy Licht Hyde Park: Reinette Atkinson Rosebank Mall: Leila Daya Southcoast Mall: Tracey Kohler Offices: Lelani Grove

PROSPECTS – UNL UNLOCK CKING VAL VALUE UE Developments in existing portfolio Canal Walk East Piazza, Nu Metro space & food court area New retail at entrances – 20 000m² The Glen Extension to Edgars & application for additional bulk Rosebank Planet Fitness Mall Southcoast Further retail developments Total Value - ± R300 million

ST STRAT RATEGY BEE equity transaction – R600 million Corporate action – SA Retail Maintain focus on prime A grade shopping centres Dispose of stand-alone offices Superior income growth

ST STRAT RATEGY THANK YOU FOR THE OPPORTUNITY