STRATEGIC & OPERATIONAL OVERVIEW Canal Walk (Cape Town, - PDF document

SUMMARISED CONSOLIDATED RESULTS For the year ended 30 June 2016 STRATEGIC & OPERATIONAL OVERVIEW Canal Walk (Cape Town, Western Cape) 1

STRATEGY & OVERVIEW South African REIT Focused on emerging markets (South Africa, sub-Saharan Africa and South-Eastern Europe) Ownership of shopping centres, distinguished by:  Quality, dominance and location  Middle-to-higher income consumers  Mix of flagship national and international retailers  Preferred shopping destination in high-density metropolitan areas or key cities CapeGate (Cape Town, Western Cape) 3 CORPORATE HIGHLIGHTS Acquired 3 new shopping centres R3,8bn New development completed USD 54,5m – Achimota Retail Centre (Ghana) New equity raised R700m* New corporate bonds issued R1,1bn* Disposed of two non-core assets R365m* * post year-end Canal Walk (Cape Town, Western Cape) 4 2

FINANCIAL HIGHLIGHTS June 2016 June 2015 % Change Distribution (cents) 619,9 543,0 14,2 Market capitalisation (Rbn) 31,6 29,4 7,3 Total assets (Rbn) 33,8 28,9 17,3 Loan to value (%) 30,8 22,9 34,5 NAV (R per share) 94,50 89,04 6,1 Total expense to income ratio (%) 36,0 36,0 - 5 DISTRIBUTION GROWTH Cents per share 700 14,2% 620 15,0% 600 543 11,3% 6,0% 472 500 9,9% 424 400 14,9% 400 13,4% 13,7% 16,3% 322 13,1% 298 9,5% 280 7,5% 300 4,5% 263 10,4% 9,4% 241 231 211 213 202 198 200 100 0 2012 2013 2014 2015 2016 1st Half 2nd Half Total % growth 6 3

SHARE PRICE PERFORMANCE JULY 2015 TO 23 Aug 2016 Post year-end SA Listed Property Hyprop Inv Ltd 120 100 80 June June 2016 2015 60 % shares traded 71,8% 73,0% % offshore shareholders 26,3% 25,0% 40 20 Q1: 52,3 million* Q2: 46,0 million* Q3: 46,0 million* Q4: 30,4 million* 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug 2015 2016 * Number of shares traded per quarter 7 INVESTMENT PROFILE Investments Distributable income Sold* R365m Sold* R33m Held for sale Held for sale R79m R864m South-Eastern Europe South-Eastern Europe R32m 3% 1% 2% R2,0bn 2% Sub-Saharan Africa 5% 6% Sub-Saharan Africa (excluding SA) 6% R84m (excluding SA) 12% R4,2bn 78% 85% Core South African Core South African Core South African Core South African portfolio portfolio portfolio portfolio R26,5bn R1,3bn R1,3bn R1,6 bn * Post year-end 8 4

OPERATING PERFORMANCE Rosebank Mall (Johannesburg, Gauteng) SOUTH AFRICAN PORTFOLIO OPERATING PERFORMANCE Maintaining good rental growth and escalations Low vacancy Arrears improved to 0,5% (2015:0,6%) Renewals successfully completed Trading density growth slowing Edcon Canal Walk (Cape Town, Western Cape) 10 5

LEASING TERMS 12% Rental growth Contractual escalation 10% 8,3% 8,2% 8,2% 8,1% 7,6% 8% 7,4% 7,3% 6,3% 6% 4% 2% 0% 2013 2014 2015 2016 11 LEASING ACTIVITY % of total Rentable area Rental growth Contractual Leasing portfolio (m²) (%) escalation (%) No. of leases Retail 19,3 137 568 7,4 8,0 504 Offices 21,3 16 096 5,2 8,3 64 Total 19,6 153 664 7,3 8,1 568 4% Rentable area Lease renewal process (m²) Leases still outstanding 6 346 Leases completed 153 664 96% Total 160 010 12 6

LEASE EXPIRY PROFILE 2016 / 2017 Total Expiring % Rentable rentable area area area of Retail (m²) (m²) centre The Glen 79 704 19,651 25 Canal Walk 148 449 18 179 12 Cape Gate Mall 63 783 13 638 21 Atterbury Value Centre 47 785 12 629 26 Somerset Mall 69 048 9 981 14 Willowbridge 40 341 9 094 23 Hyde Park Corner 28 583 7 741 27 Woodlands Boulevard 71 642 6 329 9 Clearwater Mall 86 867 3 177 4 Rosebank Mall 62 413 2 649 4 Retail 698 615 103 068 15 Offices 65 275 22 565 35 Portfolio total 763 890 125 633 16 13 VACANCIES Vacancies 30 Jun 2016 30 Jun 2015 30 Jun 2014 Retail (%) 0,8 1,3 1,2 Offices (%) 4,5 8,3 13,8 Total (%) 1,1 2,0 2,4 Tenant updates:  First Starbucks in South Africa opened at Rosebank in April 2016  First H&M in Hyprop portfolio opened at Clearwater Mall in April 2016 Clearwater Mall (Johannesburg, Gauteng) 14 7

TRADING OVERVIEW Rent ratio Trading density growth (rental as % of turnover) 10% 10% 8% 8% 7,4% 7,3% 7,1% 7,0% 6,9% 6,9% 6,8% 6% 6% 5,2% 4% 4% 2% 2% 0% 0% Jun 2013 Jun 2014 Jun 2015 Jun 2016 Jun 2013 Jun 2014 Jun 2015 Jun 2016 15 DEVELOPMENTS Extensions and developments completed:  Somerset Mall – Woolworths & other R81m  Clearwater Mall – H&M extension R22m Under construction:  Somerset Mall – H&M R16m  Atterbury Value Mart – Checkers R31m Total spend on projects, new equipment R178m and tenant installations Under planning:  Canal Walk R45m  Rosebank Mall extension R122m 16 8

INVESTMENT IN SUB-SAHARAN AFRICA (excluding SA) Ikeja City Mall (Lagos, Nigeria) West Hills Mall, Accra, Ghana MARKET CONDITIONS Negatives  Weakening of local currencies  USD liquidity and availability  Lower economic growth in 2016 Positives  Defensive portfolio - able to withstand headwinds  Located in key cities - economic growth higher than country average  Portfolio largest and best quality in sub-Saharan Africa 18 9

CURRENCIES EXCHANGE RATE VOLATILITY Ghana Nigeria Zambia RSA Indexed 2,5 2,0 1,5 1,0 0,5 0,0 Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 2013 2014 2015 2016 19 INCOME PRODUCING PROPERTIES INVESTMENT IN SUB-SAHARAN AFRICA (EXCL. SA) Hyprop Rentable Vacancy % Foot count Centre City & country % share area m² rentable area / m² Accra Mall Accra, Ghana 17,6 21 240 0 27 West Hills Mall Accra, Ghana 16,8 28 466 0 16 Achimota Retail Centre Accra, Ghana 28,1 15 170 18,0* 28 Manda Hill Lusaka, Zambia 68,8 40 561 4,7 22 Ikeja City Mall Lagos, Nigeria 75,0 22 223 2,3 30 Average 4,0 * 8 months of trading - opened in Nov 2015 20 10

DEVELOPMENTS Achimota Retail Centre Accra Mall Kumasi City Mall (Accra, Ghana) (Accra, Ghana) (Kumasi, Ghana)  Redevelopment of food court and 1 000m² extension  Under construction  Opened in October 2015  Cost USD 9,5m - Opening April 2017  Completed in April 2016 21 INVESTMENT IN SOUTH- EASTERN EUROPE Delta City (Belgrade, Serbia) West Hills Mall, Accra, Ghana 11

STRATEGY & STRUCTURE Strategy  To acquire or develop high-quality shopping malls  Size of EUR 1bn within 5-years (currently EUR 203m)  Will partner with strong local developers/owners – signed letters of intent  Attractive income yields  Low cost of bank funding Company structure  Hystead established in the UK  60% shareholding  Secured EUR funding 23 FOCUS ON EMERGING MARKETS Less competition / can acquire better quality centres Strong economic growth off a lower base Available skilled labour Better return on investment Lower taxes Delta City (Belgrade, Serbia) 24 12

INCOME PRODUCING PROPERTIES Hyprop Rentable Vacancy % Foot count Centre City & country % share area m² Rentable area / m² Delta City Belgrade, Serbia 60 29 876 0 28 Delta City Podgorica, Montenegro 60 23 729 0 19 Potential expansions: Belgrade (Serbia) Podgorica (Montenegro)  Internal changes to improve  Increase rentable area by tenant mix 12 000m² 25 FINANCIAL RESULTS Somerset Mall (Somerset West, Western Cape) 13

NET INCOME DRIVERS OF GROWTH 30 Jun 2015 30 Jun 2016 Rbn 2,5 12,6% 10,8% 8,7% 1,964 1,932 2,0 7,3% 1,848 1,743 1,743 1,701 14,2% 1,665 1,551 1,506 1,5 1,320 1,0 0,5 0,0 Investment property Add Rosebank Mall Add sub-Saharan Africa Add South-Eastern Net interest and other income (excl. SA) Europe 27 NET INCOME YEAR ON YEAR CHANGE R’000 1 600 000 22 868 31 944 1 550 000 41 286 1 500 000 (51 085) 28 947 (6 365) 118 306 1 450 000 1 400 000 1 505 519 1 350 000 1 505 519 1 300 000 1 250 000 1 319 618 1 200 000 1 150 000 1 100 000 30 Jun 2015 Existing Rosebank Sub-Saharan South-Eastern Net Properties Other 30 Jun 2016* portfolio Mall Africa Europe interest sold (Excl. SA) * Antecedent dividend excluded 28 14

DISTRIBUTABLE EARNINGS STATEMENT 30 June 2016 30 June 2015 % ( R’000) ( R’000) Change South African property portfolio 1 848 151 1 752 187 5,5 Investments in sub-Saharan Africa 83 654 42 368 97,4 (excl. SA) Investments in South-Eastern Europe 31 944 - Word4Word Marketing 1 000 4 243 Fund management expenses (64 922) (62 001) 4,7 Net interest (394 310) (417 178) Antecedent dividend 32 146 - Total distributable earnings 1 537 663 1 319 619 29 RECONCILIATION TO DIVIDEND DECLARED 30 June 2016 30 June 2015 ( R’000) ( R’000) Total distributable earnings 1 537 663 1 319 619 Total shares in issue at year-end 243 256 092 243 256 092 Treasury shares in issue (410 659) (265 659) Shares issued, August 2016 5 185 186 - Shares in issue for distributable earnings 248 030 619 242 990 433 Dividend per share (cents) 619,9 543,0 Dividend per share growth (%) 14,2 15,0 30 15