CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS attacq interim results for the six months ended 31 december 2019 1 / 1 attacq | interim results presentation 2 performance

CONDENSED UNAUDITED CONSOLIDATED

INTERIM FINANCIAL RESULTSfor the six months ended 31 December 2019

ATTACQ INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019 1 /

1

A T T A C Q | I N T E R I M R E S U L T S P R E S E N T A T I O N

2 PERFORMANCE OVERVIEW

4 SOUTH AFRICAN PORTFOLIO

14 DEVELOPMENTS AT WATERFALL

23 INVESTMENT IN MAS

28 REST OF AFRICA RETAIL INVESTMENTS

30 FINANCIAL RESULTS

37 STRATEGIC UPDATE

39 QUESTIONS AND ANSWERS

40 APPENDICES

AGENDA

Deloitte interior, Waterfall City

INTERIM RESULTS for the six months ended 31 December 2019

/ 2 ATTACQ INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2019

3


DEPS cents

Dec 2019 Dec 2018 % change

South African portfolio 37.4 29.3 27.6

Developments at Waterfall (2.5) (2.3) 8.7

Investment in MAS 16.6 12.3 35.0

Rest of Africa retail investments 1.7 5.7 (70.2)

Distributable earnings per share 53.2 45.0 18.2

Sales of sectional title units (1.3) -

Abnormal net lease cancellation fee (2.1) -

Interest received from AttAfrica - (4.8)

Core distributable earnings 49.8 40.2 23.9

FOCUSED APPROACH FOUR KEY DRIVERS

2


01Core DEPS

December 2018: 40.2cps

49.8cps

PERFORMANCE OVERVIEW

05Interest cover ratio

June 2019: 1.85 times

1.91 times

02DPS

December 2018: 40.5cps

45.0cps

06Gearing

June 2019: 37.7%

39.1%

03DPS growth

Full year guidance: 8.0% - 10.0%

11.1%

07Trading density growth

December 2018: 6.9%

5.7%

04Developments at Waterfall

June 2019: 7 buildings completed

6 buildings completed

08Mall of Africa trading density growth

December 2018: 12.7%

10.1%


4


1ST KEY DRIVER: SOUTH AFRICAN PORTFOLIO

Dec 2019Core DEPS

34.0cps

Mall of Africa, Waterfall CityR20.7bn | 76.5% of TOTAL ASSETS

68.3%

Dec 2018Core DEPS

29.3cps72.9%

NOTES


5


11PGLA green certified

12Installed PV capacity

119 405m² 6 852 kWp

June 2019: 119 405m2 June 2019: 6 852 kWp^ Weighted average based on PGLA ** Weighted average lease expiry on PGLA# Weighted average based on gross rent multiplied by PGLA* Rental escalation excluding rates multiplied by PGLA, excluding BMW Group SA Regional Distribution Centre

SOUTH AFRICAN PORTFOLIO01Value of total assets

June 2019: 75.6%

76.5%

05Collections

June 2019: 99.0%

98.8%

02Number of additional buildings

June 2019: 7 newly completed

6 newly completed

06WALE**

June 2019: 6.5 years

6.1 years

03Average portfolio age^


7.2 years

07Rental reversion#

June 2019: +6.9%

-7.5%

04Occupancy

June 2019: 93.8%

94.0%

08Rental escalation*

June 2019: 7.3%

7.2%

09Tenant success rate^


92.0% 5.7%

June 2019: 80.6% December 2018: 6.9%

6


Weighted on property value2 Eglin valued in accordance with the signed sale agreement

VALUATION INPUTS FOR DCF METHODOLOGY

Dec 2019SECTOR

% of total portfolio by value

Discount rates%

Exit cap rates%

Cap rates%

Average valueR/m²

Retail 52.28 12.35 7.14 6.88 32 670

Office and mixed-use 37.62 13.24 8.12 7.74 28 312

Light industrial 8.20 13.25 8.51 7.75 9 785

Hotel 1.90 13.75 8.41 7.92 26 403

Total portfolio 100.00 12.78 7.65 7.29 26 050

Jun 2019SECTOR

% of total portfolio by value

Discount rates%

Exit cap rates%

Cap rates%

Average valueR/m²

Retail 52.23 12.38 7.10 6.84 32 592

Office and mixed-use 37.32 13.13 8.05 7.63 29 699

Light industrial 8.62 13.51 8.32 7.51 9 714

Hotel 1.83 13.74 8.40 7.91 25 338

Total portfolio 100.00 12.78 7.58 7.21 26 185


NOTES

7


SOUTH AFRICAN PORTFOLIO: LEASING UPDATEOCCUPANCY Dec 2019 Jun 2019

% PGLA m2 % PGLA m2

Retail 97.8 289 257 97.1 287 573

Office and mixed-use 85.7 233 714 87.5 227 583

Like-for-like portfolio 86.7 224 234 88.5 225 598

Buildings completed during the period 67.9 9 480 38.1 1 985

Light industrial 100.0 173 266 97.1 175 561

Hotel 100.0 13 690 100.0 13 690

Year end portfolio occupancy 94.0 709 927 93.8 704 407

Plus: filled post period-end 0.6 4 863 0.9 6 594

Plus: 2 Eglin 2.9 22 215 2.8 20 732

Adjusted portfolio occupancy 97.5 737 005 97.5 731 733

Waterfall 98.6 457 471 97.7 448 656

Non-Waterfall 95.9 279 534 97.1 283 077


9


TRADING DENSITY* RENT TO TURNOVER#

CENTREDec 2019

R/m2Dec 2018

R/m2Growth

%Dec 2019

%Dec 2018

%Change

%

Super-regional 3 293 2 991 10.1

Mall of Africa 3 293 2 991 10.1 9.1 9.2 (1.1)

Regional 2 781 2 680 3.8

Brooklyn Mall 3 036 2 928 3.7 10.6 10.8 (1.9)

Eikestad Precinct 2 693 2 597 3.7 7.0 7.0 0.0

Garden Route Mall 2 854 2 710 5.3 6.9 6.8 1.5

MooiRivier Mall 2 659 2 600 2.3 6.7 6.5 3.1

Convenience and other 4 982 4 948 0.7

Glenfair Boulevard 5 040 4 939 2.0 5.1 5.2 (1.9)

Lynnwood Bridge 4 908 4 959 (1.0) 5.9 5.8 1.7

Neighbourhood 3 900 3 479 12.1

Waterfall Corner 3 900 3 479 12.1 4.8 5.3 (9.4)

Portfolio (effective average) 3 177 3 006 5.7

* Reported tenant turnover divided by PGLA based on a 12 month average # Gross rental including operating costs and rates divided by reported turnover based on a 12 month average

SOUTH AFRICAN PORTFOLIO: RETAIL

8


09Tenant success rate#

June 2019: 79.0%

90.9%

10Non-PGLA income

December 2018: R10.1m

R8.7m


June 2019: 6 611 kWp

6 611kWp

12% Generator capacity^

June 2019: 63.3%

97.4%

* Rental escalation excluding rates multiplied by PGLA# Weighted average based on gross rent multiplied by PGLA^ Based on PGLA

SOUTH AFRICAN PORTFOLIO: RETAIL01% of total portfolio by value

June 2019: 51.8%

51.9%

05WALE


4.0 years

02Value of total portfolio

June 2019: R9.9bn

R9.9bn

06Rental reversion#

June 2019: +1.6%

-10.8%

03Occupancy

June 2019: 97.1%

97.8%


June 2019: 7.0%

6.9%

04Collections

June 2019: 99.4%

98.8%


December 2018: 6.9%

5.7%


NOTES

10


Mall of Africa visitor information

SOUTH AFRICAN PORTFOLIO: MALL OF AFRICA

* Reported tenant turnover divided by PGLA based on a 12-month average

Dec 2019 Jun 2019 Jun 2018 Jun 2017

Trading density* (R/m²) 3 293 3 202 2 832 2 564

Rolling 12-months foot count (million) 16.4 15.5 14.6 14.0

Rent to turnover (%) 9.1 9.1 9.6 9.9

Rolling 12-months non-PGLA income (R’million) 8.7 7.1 5.9 4.3

Occupancy (%) 98.8 97.2 99.4 98.6

Collections (%) 98.5 99.4 99.0 95.8

Conversion rate

93%

Average stores visited

7.4Average time a mobile device

spends per single visitPercentage of mobile devices

that visit and enter a storeAverage number of stores visited

per mobile device per visitPercentage of mobile devices

detected more than oncein 31 days

Time spent

119 min

Loyalty

55%


12


SOUTH AFRICAN PORTFOLIO: LIGHT INDUSTRIAL

* Rental escalation excluding rates multiplied by PGLA, excluding BMW Group SA Regional Distribution Centre^ Weighted average based on PGLA

01% of total portfolio by value

June 2019: 8.6%

8.1%

05WALE


9.6 years


June 2019: R1.6bn

R1.6bn

06PGLA of total portfolio

June 2019: 22.5%

22.9%

03Occupancy

June 2019: 96.8%

100.0%


June 2019: 7.1%

6.9%

04Collections

June 2019: 100.0%

100.0%



3.3 years

11


SOUTH AFRICAN PORTFOLIO: OFFICE AND MIXED-USE

# Weighted average based on gross rent multiplied by PGLA* Rental escalation excluding rates multiplied by PGLA^ Weighted average based on PGLA

09PGLA green certified

June 2019: 59.0%

59.0%


June 2019: 241 kWp

241 kWp


5.4 years

12Newly completed PGLA

December 2018: 9 634m2

18 642m²


June 2019: 37.8%

38.1%

05WALE


6.4 years


June 2019: R7.2bn

R7.3bn

06Rental reversion#

June 2019: +2.8%

+7.1%

03Occupancy

June 2019: 88.2%

85.7%


June 2019: 7.7%

7.7%

04Collections

June 2019: 99.7%

99.3%

08Tenant retention success rate

June 2019: 89.4%

96.6%



13


SOUTH AFRICAN PORTFOLIO: HOTEL

* Rental escalation excluding rates multiplied by PGLA^ Weighted average based on PGLA


June 2019: 1.8%

1.9%

05WALE

8.2 years


June 2019: R346.9m

R361.5m

06PGLA of total portfolio

June 2019: 1.8%

1.8%

03Occupancy

June 2019: 100.0%

100.0%


June 2019: 7.0%

7.0%

04Collections

June 2019: 100.0%

100.0%



7.3 years


NOTES


15


WATERFALL CITY

Pipeline

Completed

Under construction

Waterfall City

Netcare Hospital

14


2ND KEY DRIVER: DEVELOPMENTS AT WATERFALLDeloitte Head Office, Waterfall City

Dec 2019Core DEPS

(2.5)cps

R2.4bn | 8.7% of TOTAL ASSETS

(5.0%)

Dec 2018Core DEPS

(2.3)cps

(5.7%)


NOTES

16


LEASEHOLD LAND

Industrial 170 952m²

Total 170 952m²

WATERFALLCITYAN INTEGRATEDCITY THATWORKS

Retail 52 692m²

Residential 60 473m²

Office 593 101m²


Hotel 50 640m²

Total 770 227m²

Total of 1 102 882m² effective remaining undeveloped bulk, valued via comparable sales technique.

WATERFALLLOGISTICS HUBGAUTENG’SLOGISTICS HUBOF CHOICE

Sanlam JV


Attacq (23.57%)

161 703m²

Total 161 703m²

Remaining undeveloped bulk

COMPLETED - HELD

COMPLETED - SOLD

BULK - SOLDWaterfall City

(%)

WaterfallLogistics Hub

(%)UNDER CONSTRUCTION

REMAINING UNDEVELOPED BULK

65.7

22.0

4.84.03.5

21.937.9

2.21.2

36.8


17


COMPLETED DEVELOPMENTS

* Sectional title

COMPLETED BUILDINGSMulti or single

tenantedEffective PGLA m² % Let/sold

Practicalcompletion date

Leasecommencement

date

Waterfall CityThe Ingress – Building 2 Multi 4 484 37.2 Q2 FY20 Q3 FY20The Ingress – PSG Wealth Single 4 311 100.0 Q1 FY20 Q1 FY20Waterfall Point – Building 1* Multi 2 339 79.8 sold Q2 FY20 InventoryWaterfall Point – Building 2* Multi 2 585 100.0 Q2 FY20 Q2 FY20Waterfall Point – Building 3* Multi 2 339 50.8 sold Q2 FY20 InventoryWaterfall Point – Building 4* Single 2 584 100.0 Q2 FY20 Q2 FY20TOTAL 18 642 >80.0

Waterfall Point

The Ingress

18


Deloitte Head Office

PGLA: ±42 500m²

Land Parcel 10

Sector: office

50.0% JV with Atterbury

Targeting Silver LEED certification(as built and commissioning)

Completion date: Quarter 3 FY20

Installing PV system of 220 kWp

Corporate consolidation

DEVELOPMENTS UNDER CONSTRUCTION

Deloitte


NOTES

19


Waterfall Corporate Campus

PGLA: ±35 000m²

Land Parcel 10B

Seven buildings phased development

Sector: office

50.0% JV with Zenprop

All buildings have targeted or have achieved a minimum four-star GBCSA(by design and as built) certification

Completed

• Three buildings (16 300m2) – >95.0% let

Completed post 31 December 2019

• Building 5 ContinuitySA (5 530m²) – fully let

• Completion date: Quarter 3 FY20

Under construction post 31 December 2019

• Building 4 spec building (4 958m²)

• Expected completion Quarter 1 FY21

DEVELOPMENTS UNDER CONSTRUCTION | CONTINUED

CorporateCampus


21


Nexus Waterfall, Courtyard Hotel

PGLA: ±32 000m²

Land Parcel 10

Sector: office and mixed-use

Targeting four-star GBCSA certification(by design and as built)

Phased development

“New concept” 4-star Courtyard Hotelby the City Lodge Hotel Group

› 168 keys

› Completion date: Quarter 2 FY21› Lease term: 15 years

Three office buildings


Nexus Waterfall

20


Nespresso warehouse

Total PGLA: 4 757m²

Land Parcel 8 North

Sector: light industrial

Estimated completion date: Quarter 4 FY20

This marks the final development in Land Parcel 8 North


Nespresso


22


Ellipse Waterfall

Develop to sell residential units

Land Parcel 10

50.0% JV with Portstone Developments

Targeting four-star GBCSA certification(by design and as built)

Sector: residential (sectional title)

Phased development

• Newton and Kepler towers (phase 1): 269 units, >75.0% pre-soldCompletion date: Quarter 1 FY22

• Cassini tower (phase 2): 175 units,>13.0% pre-sold

• Galileo tower (phase 3): ±175 units based on early designs


Ellipse

NOTES


24


05DPS and guidance

€858.1 million

MAS OVERVIEW01Strategy

Long-term focusing on capital allocation, operational excellence, leveraging and cost efficiencyFocus on Central and Eastern Europe (“CEE”), redeployment of capital invested in Western Europe into CEE

02Asset split*

Total€1 462.2 million

CEE€524.3 million

Development JV€206.2 million

Western Europe€565.6 million

Head Office€166.1 million

Total€906.3 million

CEE€344.3 million




03NAV split*

Total€27.7 million

CEE€12.7 million




04Distributable earnings split*

Interim dividend declared of 4.24 euro cents per share Prior guidance replaced. Aim to pay out 100.0% of adjusted distributable earnings per share on a bi-annual basis

* As per MAS proportionate accounts

23


Nova Park, Poland

3RD KEY DRIVER: INVESTMENT IN MAS

Dec 2019Core DEPS

16.6cps

R3.0bn | 11.0% of TOTAL ASSETS

33.3%

Dec 2018Core DEPS

12.3cps 30.6%


25


01Board and management• Investment JV and Prime Kapital

management platform acquisition approved 20 November 2019

• MAS now a Central and Eastern Europe (CEE) property investor and operator

• Reconstituted board• Strong, experienced management

MAS RESULTS AND INCOME-GENERATING PORTFOLIO02Western Europe

• Acceleration of exit strategy

› €544.0 million of IP to be recycled

› €508.0 million targeted by Dec 2020

› €36.0 million of costs estimated to crystallise on disposal

03CEE

• Growing contribution from CEE(46.0% adjusted DE from CEE vs 33.8%in prior period)

• Extensions and refurbishment› Extension of Militari Shopping Centre

(Romania) to commence soon› Extension of Nova Park (Poland)

underway› Major refurbishment and tenant

reconfiguration of Stara Zagora Mall (Bulgaria) underway

Galleria Burgas, Bulgaria

NOTES


27


2 500

2 750

3 000

3 250

3 500

Jun2019

Equityacc

Shareof OCI

Dividend FXimpact

Dec2019

• Shareholding drop to 20.7% due to MAS share issue (30 June 2019: 22.8%) • Decrease in equity accounted investment in associate from R3.2 billion to R3.0 billion• Cash dividends received of R121.2 million during period (being final MAS’ FY19 dividend)• Strengthening of rand vs euro

MAS IN ATTACQ’S FINANCIALSR’million

3 183.5

194.0 16.0 (121.2)

(297.1)

2 975.2

26


Development pipeline (€’million)

MAS AND PKM DEVELOPMENTS

CEE development pipelineDevelopment completions • Zalau Value Centre (Zalau, Romania): 23 338m², initial yield of 12.2%• DN1 Value Centre (Balotesti, Romania): 46 726m², initial yield of 11.1%• €773.0 million total development pipeline made up of:

› €220.8 million of projects under construction› €552.2 million of projects under permitting

Projects under construction• 32 900m² Dambovita Mall (Targoviste, Romania)

(May 2020 targeted trading date)• 92 000m² super-regional Mall Moldova (Iasi, Romania)• 17 000m² mall (Sfantu Gheorghe, Romania)• Marmura Residence (465 apartments, Bucharest, Romania)

Projects under permitting• €258.0 million relates to large-scale mixed use Silk District development

(Iasl, Romania)› Includes 98 000m² A grade offices, 2 500 residential units › Targeted start date moved to September 2020

• Avalon Estate (Bucharest, Romania) construction to commenceonce building permits issued

220.8

552.2

0

200

400

600

Under construction Under permitting


NOTES

28


4TH KEY DRIVER: REST OF AFRICA RETAIL INVESTMENTSRest of Africa presence

Dec 2019Core DEPS

1.7cps

R0.8bn | 2.8% TOTAL ASSETS

3.4%

Dec 2018Core DEPS

0.9cps

2.2%


29


0

100

200

300

400

Jun2019

ECL adj Interestaccrued

Interestreceived

FXimpact

Dec2019

0

100

200

300

400

Jun2019

Loansrepaid

Loansadvanced

ECL adj FXimpact

Dec2019

Note: Attacq has no debt against its Rest of Africa retail investments

REST OF AFRICA RETAIL INVESTMENTS BREAKDOWN

R’000Dec2019 %

Jun2019 %

Attacq offshore cash on hand 174 317 23.0 180 624 22.0

Ikeja City Mall (loan) 278 586 36.6 276 899 33.8

AttAfrica (loan) 306 561 40.4 362 545 44.2

Rest of Africa retail investments 759 464 100.0 820 068 100.0

362.5

276.9 0.2306.6 15.0

(113.9)

(1.2)46.9 13.4278.6

(2.3)

AttAfrica (R’million) Ikeja (R’million)

(12.1)

30


FINANCIAL RESULTS

Novartis, Waterfall City


NOTES

31


01Core DEPS growth

23.9%

FINANCIAL OVERVIEW

05Weighted average cost of debt

June 2019: 8.8%

8.8%

02Interest cover ratio

1.91 times

06Interest rate hedging

June 2019: 78.7%

80.2%

03Gearing

June 2019: 37.7%

39.1%

07First time adoption

IFRS 16

04Debt expiry profile


3.1 years

08Leasehold land

Change in valuation technique

June 2019: 1.85 timesDecember 2018: n/a


33


R’000 Dec 2019 Jun 2019 % change

South African portfolio 20 695 353 20 455 643 1.2

Developments at Waterfall* 2 354 782 2 329 199 1.1

Investment in MAS 2 985 125 3 192 978 (6.5)

Rest of Africa retail investments 759 464 820 068 (7.4)

Head office – South Africa 266 264 252 441 5.5

Head office – Global 267 72 270.8

Total assets 27 061 255 27 050 401 0.0

Total liabilities (11 992 758) (11 462 669) 4.6

Total equity 15 068 497 15 587 732 (3.3)

Progress on developments under construction, including development surplus and a negative fair value adjustment on leasehold land

* Includes developments under construction and leasehold land

BALANCE SHEET PER KEY DRIVER

Forex movements and utilisation of cash balance to part settle euro debt

Increase in interest bearing debt in respectof developments and recognition of IFRS 16 lease liabilities

Increase due to newly completed buildings, the recognition of IFRS 16 right of use assets, set off by negative fair value adjustments

32


R’000 Dec 2019 Dec 2018 % change

South African portfolio 262 200 205 587 27.5

Developments at Waterfall (17 323) (16 213) 6.8

Investment in MAS 117 086 86 579 35.2

Rest of Africa retail investments 12 093 40 424 (70.1)

Distributable earnings 374 056 316 377 18.2

DISTRIBUTABLE EARNINGS PER KEY DRIVER

Increase mainly due to newly completed buildings, vacancies filled and in-force escalations. NOI like-for-like growth was 7.6%

Cents per share Dec 2019 Dec 2018 % change

South African portfolio 37.4 29.3 29.6

Developments at Waterfall (2.5) (2.3) 8.7

Investment in MAS 16.6 12.3 35.0

Rest of Africa retail investments 1.7 5.7 (70.2)

Distributable earnings 53.2 45.0 18.2

Sales of sectional title units (1.3) - Nmf

Abnormal net lease cancellation fee (2.1) - Nmf

Interest received in cash from AttAfrica - (4.8) Nmf

Core distributable earnings 49.8 40.2 23.9

Dividend per share 45.0 40.5 11.1

Holding costs on development rights comprising rates and taxes and marketing

Increase in the underlying euro-based dividends of 23.3% net of euro interest paid as well as the impact of forex movements

Cash interest received


34


VALUATION OF LEASEHOLD LANDValuation technique changed from residual land valuation to comparable salesTo facilitate the application of comparable sales – the leasehold land has been categorised as per below:

* Market rates relate to freehold bulk rates, with the exception of the rates of unserviced land which relate to leasehold rates on land area

Freehold market rates*

Valued areas External valuer range Utilised

Land Land Bulk Industrial Mixed use Industrial Mixed use ValuationCategory Characteristics Comparable sales application Parcels (m²) (m²) (R per m²) (R per m²) R’000

Unserviced leasehold land

Unserviced leasehold landwith development potential

Land area multiplied by market rate per m2

for unserviced land

12, portions of 10

471 387 - 150-750 150-170 150 150 70 708

Partially serviced leasehold land

Leasehold land,at varying degrees of servicing

Land/bulk area multiplied by market rate per m2

of serviced bulk, reduced by future costs of servicing, and leasehold liability; DCF factor applied relative to timelines of servicing

Portions of 8, 10 41 620 144 980 600-1 750 2 500-4 700 1 150 3 000 276 165

Fully serviced leasehold land

Leasehold landwith s82 certificates, a small measure of costs to complete

Land/bulk area multiplied by market rate per m2

of serviced bulk, reduced by future costs of servicing, and leasehold liability

9, 10b, 22, portions of 8 and 10

228 621 217 366 600-1 750 2 500-4 700 1 200 3 200 660 861

741 268 362 346 1 007 734

Impairment of leasehold land for the six months ended 31 December 2019: R51.2m

NOTES


36


NET ASSET VALUE PER SHARE MOVEMENT

18

19

20

21

22

23

24

25

Jun2018

IFRS 9transition

adjustment

Shareissues

Loss for theyear

Othercompre-

hensive loss

Dividendpaid

Otherdistribut-

ableearnings

movements

OtherFVOCIreserve

movements

FCTR Settlementof SBP

SBPreserve

Jun2019

Shareissues

Loss for theperiod

Othercompre-hensiveincome

Dividendpaid

Otherdistribut-

ableearnings

movements

FCTR Settlementof SBP

SBPreserve

Dec2019

R per share

24.24 (0.03) (0.87)0.00

(0.05) (1.14)

(0.21) 0.040.18 (0.03) 0.03 22.16 0.01 (0.06) (0.41)0.010.12 (0.43)

(0.01) 0.02 21.41

35


1.91 1.85

39.1 37.7

0

10

20

30

40

0,0

0,8

1,6

2,4

Dec 2019 Jun 2019Interest cover ratio Gearing

9.7 9.9

2.0 1.9

8.8 8.8

0

4

8

12

Dec 19 Jun 19

INTEREST-BEARING DEBTInterest cover ratio (times) and Gearing (%) Weighted average cost of debt (%)

1 217

4 438

2 978

73

2 093

6991 040

3 007

1 489

2 740

0

1 000

2 000

3 000

4 000

5 000

Within 1 year 1 to 2 years 2 to 3 years 3 to 4 years > 4 years

Debt maturity Hedge maturity

Debt and hedge maturity (R’million)

11 69510 799

8960

3 000

6 000

9 000

12 000

15 000

Committed facilities Drawn facilities Available facilities

Debt facilities (R’million)

9.0

0.9

8.7

1.0

Rand-denominated Euro-denominated Hedging premium Total


37


STRATEGIC UPDATE

Corporate Campus, Waterfall City

NOTES


39


QUESTIONS AND ANSWERS

Waterfall Point, Waterfall City

38


South Africa• Own and manage dominant nodes

anchored by retail• Focus on property fundamentals

› Tenant experience focused› Proactive in identifying tenant failures› Improve cost efficiencies

• Roll-out developments in Waterfall City and Waterfall Logistics Hub

• Creating safe, sustainable spaces where people can connect and grow

* Guidance has not been reviewed or reported on by Attacq’s auditors

STRATEGIC UPDATEInternational• Investment in MAS

› Future cap raisings will not be followed

• Rest of Africa retail investment› no further investments to be made but for

operational needs › continue implementation of exit strategy› Disposal proceeds to be used to reduce

debt

Balance sheet management• Allocation of capital • Improve ICR• Long-term targets:

› Gearing <35.0%› ICR >2.0 times

• Guidance* affirmed at upper range› Approximately 10.0% growth in DPS

PSG, Waterfall City Nova Park, Poland Cummins interior, Waterfall City


40


APPENDICES

Deloitte head office, Waterfall City

NOTES


41


SA PORTFOLIO: LEASE EXPIRY PROFILE

0

100 000

200 000

300 000

400 000

500 000

Vacant Month-to-month Dec 2020 Dec 2021 Dec 2022 Dec 2023 Dec FY24+

Hotel 13 690Industrial 8 518 164 748Office 38 955 374 16 775 34 599 15 420 14 767 151 779Retail 6 488 4 709 38 042 57 928 29 273 50 232 109 073TOTAL 45 443 5 083 54 817 92 527 44 693 73 517 439 290

Lease expiry profile - PGLA (m²)

6.0%

0.7%

7.3%

12.2%

5.9%9.7%

58.2%

TOTAL 45 443 5 083 54 817 92 527 44 693 73 517 439 290

42


* Gross rental including operational costs and rates

SA PORTFOLIO: TOP 5 TENANTS PER SECTOR

TOP 5 TENANTS

Attributable gross rentalas a % of total gross rent

%

RetailThe Foschini Group 3.1Edcon 2.5Mr Price Group 2.4Woolworths 2.0Shoprite Checkers 2.0Office and mixed-usePwC 5.8Cell C 5.5Aurecon 5.0Transnet 3.6Adams & Adams 2.8Light industrialMassmart 2.3Amrod 2.1BMW 2.0Cummins 0.6Dimension Data 0.5

TOP 5 TENANTS

Attributable PGLAas a % of total PGLA

%

RetailWoolworths 3.6Shoprite Checkers 3.2Edcon 2.9Massmart 2.8The Foschini Group 2.1Office and mixed-useCell C 6.0PwC 5.0Transnet 3.3Aurecon 3.1Adams & Adams 1.7Light industrialMassmart 6.9Amrod 5.2BMW 4.4Dis-chem 1.2Dimension Data 1.1


43


SA PORTFOLIO: PROPERTY COST-TO-INCOME RATIODec 2019 Dec 2018

TotalR’000

WaterfallR’000

Non-Waterfall

R’000Total

R’000Waterfall

R’000

Non-Waterfall

R’000

Rental income^ per income statement A 1 130 999 656 988 474 011 1 004 001 546 663 457 338

Property expenses per income statement* B (385 828) (210 424) (175 404) (365 346) (196 185) (169 161)

Municipal recoveries^ C 240 947 131 217 109 730 208 611 102 787 105 824

Municipal charges* D (267 262) (154 655) (112 607) (232 968) (125 817) (107 151)

Repayment of lease liability (LL) interest E (10 582) (10 638) 56 - - -

Repayment of LL capital F (11 509) (11 939) 430 - - -

Rental paid* (5 824) (5 846) 22 (21 477) (21 058) (419)

Gross cost to income adjusted for LL ((B+E+F)/A) 36.1% 35.5% 36.9% 36.4% 35.9% 37.0%

Net cost to income adjusted for LL ((B+E+F+C)/(A-C)) 18.8% 19.4% 17.9% 19.7% 21.0% 18.0%

^ Municipal recoveries included in rental income* Rental paid and municipal charges included in property expenses

NOTES


45


• Buildings included for 6 months in both periods# Excludes net operating income impact of 2 Eglin, straight-lining, sale of inventory and cost of sales

SA PORTFOLIO: NET OPERATING INCOME BRIDGE

450

550

650

750

850

Dec 2018NOI

Plus:RI increasecompletedbuildings*

Plus:RI increasebuildings

completed2020

Plus:RI increasebuildings

completed2019

Plus:Early

termination

Plus:RI Eglinimpact

Less:PE increasecompletedbuildings*

Less:PE increase

buildingscompleted

2019

Less:PE increase

buildingscompleted

2018

Plus:PE Eglinimpact

Plus:IFRS 16

rental paid

Dec 2019NOI

R’million

Like-for-like net operating income per sector % Change

Retail (1.1)

Office and mixed-use# 18.8

Light industrial 5.6

Hotel 6.5

Total 7.6

638.7

81.0 14.1 16.0 16.0 0.5(32.4)

(5.9) (6.3) 1.6 21.9 745.2

Interim vacancies and tenant replacements

Contractual escalations, vacancies filled and full year income from tenants previously in beneficial occupation

44


RETAIL CATEGORY % of area % of total turnover% trading density

growth

Accessories, jewellery and watches 1.1 2.1 3.1

Apparel 25.8 20.8 2.6

Books, cards and stationery 1.9 1.5 (2.0)

Department stores 24.2 22.0 12.8

Electronics 2.5 4.7 5.1

Entertainment 3.5 0.6 (4.2)

Eyewear and optometrists 0.5 0.7 (3.5)

Food 11.3 12.4 (2.0)

Food services 8.3 9.8 16.8

Health and beauty 5.6 11.6 1.9

Homeware, furniture and interior 6.8 4.4 8.5

Luggage 0.3 0.4 1.6

Services 0.2 0.2 8.6

Speciality 3.1 4.2 10.3

Sportswear and outdoor 4.9 4.6 1.1

Total 100.0 100.0 5.7

SA PORTFOLIO: RETAIL PER SECTOR


NOTES

46


Hotel portfolio

PROPERTY NAME Location Key tenantsPGLA

m²Valuation

R’000ValueR/m²

City Lodge Hotel Lynnwood Pretoria City Lodge 7 946 239 114 30 092 City Lodge Hotel Waterfall City Waterfall City Lodge 5 744 122 341 21 299 TOTAL 13 690 361 455 26 403

Values provided above reflect Attacq’s undivided share in the property: *25.0%; **80.0%

SA PORTFOLIO: OVERVIEWRetail portfolio


m²Valuation

R’000ValueR/m²

Brooklyn Mall* Pretoria Checkers, Dis-Chem, Game, Woolworths 18 764 641 331 34 179 Eikestad Mall** Stellenbosch Checkers, Game, Food Lover’s Market, Woolworths 38 227 936 320 24 494 Garden Route Mall George Dis-Chem, Edgars, Game, Pick n Pay, Woolworths 53 767 1 501 600 27 928 Glenfair Boulevard Pretoria Dis-Chem, Shoprite Checkers, SuperSpar 15 951 452 947 28 396 Lynnwood Bridge – retail Pretoria Planet Fitness, Safari and Outdoor Warehouse, Woolworths 11 378 373 139 32 795 Mall of Africa** Waterfall Checkers Hyper, Game, Edgars, Woolworths 99 770 4 467 525 44 778 MooiRivier Mall Potchefstroom Checkers, Dis-Chem, Edgars Game, Woolworths 49 696 1 231 600 24 783 Waterfall Corner Waterfall Checkers, Woolworths 9 582 207 634 21 669 Waterfall Lifestyle Waterfall Bounce, Virgin Active 7 139 128 553 18 007 TOTAL 304 274 9 940 649 32 670


48


Values provided above reflect Attacq’s undivided share in the building: *50.0%

SA PORTFOLIO: OVERVIEW | CONTINUED

Light industrial portfolio

PROPERTY NAME Location TenantsPGLA

m²Valuation

R’000ValueR/m²

Amrod Waterfall Amrod 37 937 418 416 11 029 BMW Group SA Regional Distribution Centre Waterfall BMW 31 987 279 435 8 736 Cummins SA Regional Office* Waterfall Cummins 7 649 116 339 15 210 Dimension Data Waterfall Dimension Data 8 291 94 151 11 356 Dis-Chem warehouse Waterfall Dis-Chem 8 518 84 038 9 866 GloTool Waterfall GloTool 5 262 40 597 7 715 Massbuild distribution centre Waterfall Massbuild 50 033 417 401 8 343Pirtek Waterfall Pirtek 2 815 31 653 11 244 Superga Waterfall Superga 4 710 44 169 9 378 Zimmer Biomet* Waterfall Zimmer Biomet 2 050 32 096 15 657 TOTAL 159 252 1 558 295 9 785

47


Office and mixed-use portfolio


m²Valuation

R’000ValueR/m²

2 Eglin Sunninghill Group Five 25 525 135 000 5 289Allandale building Waterfall Cummins, Trans-Africa Projects, WiseTech Global 15 359 423 102 27 547 Brooklyn Bridge Office Park Pretoria Circle Chambers, SARS 23 525 481 000 20 446 Cell C Campus Waterfall Cell C 43 890 955 866 21 779Gateway West Waterfall Sage South Africa, Spaces 13 803 359 914 26 075 Transnet Waterfall Transnet 24 354 639 359 26 253 The Ingress – building 2 Waterfall Greensill, Averda South Africa 4 484 80 931 18 049The Ingress – PSG Wealth Waterfall PSG Wealth 4 311 118 656 27 524Lynnwood Bridge – Aurecon Pretoria Aurecon 19 104 634 199 33 197 Lynnwood Bridge Pretoria Adams & Adams, Citadel, Sanlam, Water Research Commission 27 613 929 582 33 665 Maxwell Office Park* Waterfall Cipla Colgate, Golder Associates, Premier Foods 18 424 537 686 29 184 Novartis Waterfall Novartis 7 982 238 887 29 928 PwC Tower# Waterfall PwC 36 461 1 394 080 38 235 Waterfall Corporate Campus – building 1* Waterfall Isuzu Motors South Africa, Decision Inc 2 934 85 190 29 035 Waterfall Corporate Campus – building 2* Waterfall SASSETA 3 231 76 236 23 595 Waterfall Corporate Campus – Accenture* Waterfall Accenture 1 985 68 043 34 279Waterfall Point – building 2 Waterfall RSR, Novo Energy, Teleforge 2 585 63 762 24 666Waterfall Point – building 4 Waterfall RSR 2 584 65 817 25 471TOTAL 278 154 7 287 310 26 199

Values provided above reflect Attacq’s undivided share in the building: *50.0%; Values provided above reflect Attacq’s effective co-ownership in the building: #75.0%

SA PORTFOLIO: OVERVIEW | CONTINUED


49


Values provided above reflect Attacq’s undivided share in the building: *50.0%# Estimated PGLA for Attacq’s attributable share of development. Subject to change upon final re-measurement post completion^ The estimated value on completion of pre-sold and inventory is indicative of sales proceeds and not of an external valuation** Pre-sold based on bankable sales

DEVELOPMENTS: OVERVIEWDevelopments under construction

% completed

Estimated practical

completion datePGLA#

m²% Pre-let

PGLA

Estimatedcapital cost

R’000

Estimated valueon completion

R’000

Book value at31 Dec 2019

R’000PROPERTY NAME

Waterfall City

Deloitte Head Office* 86.3 Q3 FY20 21 250 100.0 713 653 839 150 731 074

Waterfall Corporate Campus – ContinuitySA* 85.9 Q3 FY20 2 765 100.0 64 187 83 926 72 539

Ellipse Waterfall (Phase 1) – sectional title inventory*^ 8.8 Q1 FY22 8 522 >75.0 pre-sold** 248 645 317 316 25 322

Nexus Waterfall, Courtyard Hotel 38.3 Q2 FY21 6 236 100.0 176 535 195 037 83 684

Waterfall Logistics Hub

Nespresso 33.9 Q4 FY20 4 757 100.0 46 746 46 940 23 312

TOTAL 43 530 100.0 1 249 766 1 482 369 935 931

NOTES


50


Dec 2019 Jun 2019

m² % m² %Waterfall City

LP 10 Waterfall City (Retail, residential, office and hotel) 552 294 58.7 559 901 59.0

LP 10A Corporate City (Office) 150 000 15.9 150 000 15.8

LP 10B Corporate Campus (Office) 6 282 0.7 6 282 0.7

LP 12 Capital City (Office) 48 330 5.1 48 330 5.1

LP 21 Landmark Park (Office) 13 321 1.4 13 321 1.4

Sub total 770 227 81.8 777 834 82.0

Waterfall Logistics Hub

LP 8 Distribution Campus (Industrial) 24 905 2.6 24 905 2.6

LP 9 Logistics Precinct (Industrial) 128 365 13.7 128 365 13.5

LP 22 Commercial District (Industrial) 17 682 1.9 17 682 1.9

Sub total 170 952 18.2 170 952 18.0

Total remaining bulk 941 179 100.0 948 786 100.0

Waterfall Junction (Industrial and retail) – effective share in Attacq Sanlam JV 161 703 161 703

Total remaining effective bulk including Waterfall Junction 1 102 882 1 110 489

DEVELOPMENTS: LEASEHOLD LAND

51


GROWTH IN CORE DISTRIBUTABLE EARNINGS

200

250

300

350

400

Dec

201

8 C

ore

DE

NO

Iin

crea

se

Ed

con

rest

ruct

ure

Ope

ratin

g ex

pen

se

i

ncre

ase

Inve

stm

ent i

ncom

e

dec

rea

se

Finan

ce c

ost

dec

reas

e

Dec

rea

se in

Equi

ties d

ivid

end

Cur

rent

tax

in

crea

se

Sect

iona

l titl

e sa

les

d

ecre

ase

Oth

er S

A in

vest

men

ts

MA

S d

ivid

end

in

crea

se

Real

ised

hed

ging

fore

x in

crea

se

Dec

reas

e in

Eur

ofu

ndin

g fin

ance

cos

t

Hed

ging

tax

dec

reas

e

Afri

ca in

tere

st

i

ncre

ase

Afri

ca ta

x d

ecre

ase

Land

hol

din

g co

sts

i

ncre

ase

Dec

201

9 C

ore

DE

R’million

282.8

69.3 (7.5)(1.6) (30.7)

6.6 (2.3) (0.0) (0.6) (0.5)

23.8 4.8 0.3 1.5 4.9 0.4 (1.1) 350.1


52


DIRECT METHOD: CORE DISTRIBUTABLE EARNINGS

TOTALSouth African

portfolioDevelopments

at WaterfallInvestment

in MASRest of Africa

retail investments

Rental income 1 105 474 1 105 474 Per the income statement 1 130 999 - - - -Less: Abnormal lease cancellation fee (18 000) - - - -Less: Edcon restructure (7 525) - - - -

Property expenses (399 290) (399 290) - - -Per income statement (385 828) - - - -Less: Cost iro lease cancellation 3 000 - - - -Less: Rental paid (22 091) - - - -Plus: Depreciation 2 749 - - - -Plus: Deferred leasing 2 880 - - - -

Other income (realised forex/sundry income) 7 289 197 - 7 092 -Operating expenses (82 179) (82 179) - - -

Per income statement (83 622) - - - -Less: Rental paid (1 064) - - - -Plus: Depreciation 1 705 - - - -Plus: Deferred leasing 802 - - - -

Other expenses (land holding costs) (17 323) - (17 323) - -Investment income 25 917 25 917 - - -

Per income statement 49 964 - - - -Less: non-cash interest (1 094) - - - -Less: Associates (non-cash) (22 953) - - - -

Finance cost (420 922) (411 829) - (9 093) -Per income statement (437 671) - - - -Plus: Interest on lease liability 11 359 - - - -Plus: interest capitalised 5 390 - - - -

Current tax (2 130) (40) - (2 090) -MAS dividend received 121 177 - - 121 177 -Investment income from Ikeja 12 093 - - - 12 093 Core distributable earnings 350 106 238 250 (17 323) 117 086 12 093

NOTES


53


R’000 Dec 2019 Jun 2019 % change

South African Portfolio 9 930 901 10 321 064 (3.8)

Developments at Waterfall* 2 354 782 2 329 199 1.1

Investment in MAS 1 903 480 1 969 099 (3.3)

Rest of Africa Retail Investments 743 471 803 851 (7.5)

Head office – South Africa 135 596 164 447 (17.5)

Head office – Global 267 72 270.8

Net asset value 15 068 497 15 587 732 (3.3)

* Includes developments under construction and leasehold land

NET ASSET VALUE PER KEY DRIVER

CENTS PER SHARE Dec 2019 Jun 2019 % change

South African Portfolio 14.11 14.67 (3.8)

Developments at Waterfall* 3.35 3.31 1.0

Investment in MAS 2.70 2.80 (3.4)

Rest of Africa Retail Investments 1.06 1.14 (7.6)

Head office – South Africa 0.19 0.23 (17.6)

Head office – Global 0.00 0.00 0.00

Net asset value per share 21.41 22.16 (3.4) 411 353 shares issued due to LTI scheme

54


INVESTMENT PROPERTIES MOVEMENT

16 000

17 000

18 000

19 000

20 000

21 000

Jun 2018 Capex DUC* Leaseholdland

Completedbuildings

HFS** Inventory PPE*** Othermovements

Jun2019

Additions ofIFRS 16 ROU^

assets

Capex DUC* Leaseholdland

Completedbuildings

Other HFS** Othermovements

Dec2019

R’million

19 791.1

950.4 92.2 (384.1)(373.2)

70.1 23.7(102.4) 13.7 20 081.5

* DUC: Developments under construction** HFS: Held for sale*** PPE: Property, Plant and Equipment^ ROU: Right-of-use

Fair value adjustments TransfersFair value adjustments Transfers

249.3

456.0 102.1 (51.2) (381.0)(138.0)(3.0) 4.3 20 320.0


NOTES

55


* Loan advanced to 25.0% co-owners of the PwC Tower

INVESTMENTS

2 9753 183

307 363 336 332 279 27780

241116 112 27 32 45 52

0

500

1 000

1 500

2 000

2 500

3 000

3 500

Dec 2019 Jun 2019 Dec 2019 Jun 2019 Dec 2019 Jun 2019 Dec 2019 Jun 2019 Dec 2019 Jun 2019 Dec 2019 Jun 2019 Dec 2019 Jun 2019 Dec 2019 Jun 2019MAS AttAfrica PwC Tower* Ikeja City Mall Newtown Precinct Waterfall Junction Wingspan Other

Equity Loan

R’million


57


R’000 Dec 2019

Net cash generated from operating activities 353 501

Working capital movements 34 271

Trade and other receivables 5 482

Inventory 41 570

Trade and other payables (12 781)

Adjustments between distributable earnings and cash from operating activities (13 716)

Share-based payments (11 877)

Bad debts (3 563)

Edcon restructure (7 525)

Current taxation paid versus accrued 119

Interest accrual (1 065)

Interest capitalised to investment property 21 976

Capital repayments of lease liability (11 939)

Other adjustments 158

Distributable earnings 374 056

CASH GENERATED TO DISTRIBUTABLE EARNINGS

The nature of the adjustments largely reflect timing differences (net interest accruals), non-cash items (share-based payments and bad debts) and items of a capital nature (Edcon restructure and repayment of lease liabilities)

56


INVESTEC BANK NEDBANKRMB SANLAMABSA STANDARD BANKMMI LIBERTYOMSFIN

INTEREST-BEARING DEBT

Funding mix (%)

Dec 2019

28.5

4.32.84.4

2.4

40.0

8.8

2.9

5.9

^ Calculated as total interest-bearing debt - unrestricted cash on hand / (total assets - cash on hand - right of use asset recognised as a result of IFRS 16: Leases)* Calculated as total interest-bearing debt / (total assets - goodwill - intangible assets - deferred initial lease expenditure - straight line lease adjustment - receivables - deferred tax asset)

Group covenants Covenant Actual

Bank gearing ratio* (%) 60.0 42.3

Minimum net asset value (R’billion) 7.0 15.1

Dec 2019 Jun 2019

Gross interest-bearing debt (R’000) 10 799 330 10 516 731

ZAR debt (R’000) 9 440 412 9 061 280

EUR debt (R’000) 1 358 918 1 455 451

Weighted average loan term (years) 3.1 3.6

Gearing^ (%) 39.1 37.7

Total hedged as a percentage of total committed facilities (%) 80.2 78.7

Weighted average term of hedges (years) 3.8 3.4

Total weighted average cost of debt (%) 8.76 8.76

ZAR weighted average cost of debt (%) 9.73 9.86

EUR weighted average cost of debt (%) 2.04 1.90

Interest cover ratio (times) 1.91 1.85


NOTES

58


IMPACT OF FIRST-TIME ADOPTION OF IFRS 16: LEASESDec 2019

R’000Dec 2018

R’000

Impact on the statement of profit or loss and other comprehensive incomeProperty expenses

Rental paid (5 824) (21 477) Operating expenses

Rental paid (456) (2 830)Depreciation on right-of-use asset (1 053) -

Finance costsInterest expense on lease liability (11 359) -

Fair value adjustmentsFair value adjustment on right-of-use asset (10 067) -

Impact on the statement of financial positionNon-current assets

Investment property 239 207 -Property and equipment 10 738 -

Non-current liabilitiesLease liability 224 895 -

Current liabilitiesLease liability 24 373 -

Impact on the statement of cash flowsCash flow from operating activities

Rental paid (cash from operations) (6 280) (24 307)Finance cost on lease liability (11 216) -

Cash flow from financing activitiesRepayment of lease liability (11 939) -

Rental paid relates only to variable rental, fixed rentals are capitalised to the lease liability (2018: rental paid based on fixed and variable)

Based on the weighted average cost of debt, the interest recognised

The fair value adjustments the ROU assets over the remaining term of the underlying tenant lease

Lease liability, including only the fixed rentalsof the underlying tenant lease

The rental payments due within the next12 months

Only variable payments included in cash from operations (2018: all rental payments included)

The lease liability being amortised, results in a payment of finance costs and a repaymentof capital on the lease liability


59


Environmental• Giles Pendleton nominated as incoming

chairperson of the GBCSA board• 123 949 m² of buildings undergoing green

certification by both GBCSA and US GBC• Total PV production for the six month ended is

1 453.9 MWh, equivalent to a reduction of 1 410.25 Tonne CO2e

SUSTAINABILITYGovernance• Continuous improvement in ESG reporting

demonstrated by our inclusion in the FTSE/JSE Responsible Investment Top 30 Index

• Appointed Group Risk and Compliance Officer

• Appointed Company Secretary

Tree planting, Lynnwood Bridge Gogo Mahlatse house donation, Attacq sponsorship Attacq Foundation skills development sponsorship

Social• Focus on being socially responsible citizen

that can contribute positively to the upliftment of the communities in which we operate

• B-BBEE Level 3 (strategic KPI achieved)› Improvement in Procurement and Skills

Development scorecards.

• Improved diversity

60


Purpose• Promote and support programmes aimed at

education and training

2020 Vision• Ensuring our youth are educated, equipped

with the necessary skills and sufficiently prepared for employment

ATTACQ FOUNDATION 2020 Training initiatives• Roast Republic Coffee in Waterfall City:

learnership and apprenticeship programme• Ukukhula learnership - 30 Learners

on 12 month learnership• 12-month disabled learnership program

through SDC for 10 learners• Property Point enterprise development

training for 8 SMME’s

2020 Educational initiatives• Bursaries: Woman in Property and Atterbury

Foundation• School learners programmes

› Bana ba Rona, ECD Centre, end of year graduation

› Attacq the Future› Keep a girl in school (sanitary towels) in

partnership with Sage Foundation› Back to School Programme – Tembisa and

Alexandra primary schools

Bana Ba Rona graduation ceremony, Attacq Foundation Attacq the Future, Attacq Foundation Keep a girl in school campaign


61


WATERFALL MASTER PLAN

NOTES


62


DISCLAIMER

This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements beliefs or opinions including statements with respect to the company’s business financial condition and results of operations. These statements which contain the words “anticipate” “believe” “intend” “estimate” “expect” “forecast” and words of similar meaning reflect the directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts. Past performance of the company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the company expressly disclaims any obligations or undertaking to release any update of or revisions to any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast.As a result you are cautioned not to place any undue reliance on such forward-looking statements.

This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness accuracy or fairness. This information is still in draft form and has not been legally verified. The financial information included herein is in draft form and unaudited. The company its advisers and each of their respective members directors officers and employees are under no obligation to update or keep current the information contained in this presentation to correct any inaccuracies which may become apparent or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law and any opinions expressed in them are subject to change without notice. No representation or warranty express or implied is given by the company or any of its subsidiary undertakings or affiliates or directors officers or any other person as to the fairness accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information.

NOTES


CONDENSED UNAUDITED CONSOLIDATED

INTERIM FINANCIAL RESULTS for the six months ended 31 December 2019


NOTES


Commentary Commentary

Highlights • Growth in core distributable earnings per share (DEPS) of 23.9%• Dividend per share (DPS) growth of 11.1% to 45.0 cents• Trading density growth in retail portfolio of 5.7%, with Mall of Africa having increased by 10.1%• On a like-for-like basis, net operating income increased by 7.6%• Interest cover ratio improved to 1.91 times from 1.85 times• Six buildings were completed in Waterfall with a further six buildings under construction• Reduction in Rest of Africa exposure with the disposal of interest in Manda Hill, Zambia

IntroductionAttacq is a South African-based Real Estate Investment Trust (REIT), with a vision of delivering sustainable income and long-term capital growth through a focused approach in real estate investments and developments. The quality South African portfolio is dominant in its respective nodes, ensuring its defensiveness in a subdued economy.

The group’s business model is based on four key drivers, namely the South African portfolio, Developments at Waterfall, Investment in MAS Real Estate Inc. (MAS) and the Rest of Africa retail investments. Attacq’s strategy is to exit the Rest of Africa retail investments in an orderly manner.

Attacq is listed on the Johannesburg Stock Exchange (JSE) and is included in the FTSE/JSE SAPY Index and FTSE/JSE SA REIT Index. Attacq is the only property company included in the FTSE/JSE Responsible Investment Top 30 Index.

The group has restated its prior period interim financial statements. For more information, refer to the paragraph below titled Restatement of Attacq’s prior period interim financial statements.

General overviewAttacq’s board of directors (board) is pleased to announce that an interim dividend of 45.0 cents per share (cps) (31 December 2018: 40.5cps) for the six months ended 31 December 2019 has been declared.

Attacq’s South African portfolio performed well, supported by good trading growth from the Mall of Africa as well as income from new buildings completed in Waterfall. The Rest of Africa portfolio, notwithstanding an increase in core distributable earnings, continued to underperform. These drivers combined with strong growth in dividends received from MAS, resulted in the group’s core distributable earnings increasing by 23.9% to R350.1 million (31 December 2018: R282.8 million).

During the six-month period ended 31 December 2019 the net asset value per share (NAVPS) declined by 3.4% from R22.16 at 30 June 2019 to R21.41.

A breakdown of core distributable earnings per key driver is tabled below:

Unaudited 31 December 2019

Unaudited31 December 2018

Changein cps

Core distributable earnings R’000 cps R’000 cps %South African portfolio 238 250 34.0 205 587 29.3 16.0Developments at Waterfall (17 323) (2.5) (16 213) (2.3) 8.7Investment in MAS 117 086 16.6 86 579 12.3 35.0Rest of Africa retail investments 12 093 1.7 6 800 0.9 88.9Total 350 106 49.8 282 753 40.2 23.9


Commentary (continued)

South African PortfolioOverviewAttacq’s high-quality South African portfolio consists of retail, office and mixed-use, light industrial and hotel properties. The group prides itself on providing an authentic service experience that integrates our collaborative approach with our clients’ unique needs – creating sustainable value for all our stakeholders within our South African portfolio.

During the six months ended 31 December 2019, the operational portfolio increased with newly completed buildings of 13 964m2 and decreased with the disposal of the Torre Industries building, resulting in the 31 December 2019 primary gross lettable area (PGLA) of 755 370m2 (30 June 2019: 750 825m2). These asset movements contributed towards the 16.0% increase in core distributable earnings of 34.0cps (31 December 2018: 29.3cps). The value of the existing South African portfolio is R20.7 billion (30 June 2019: R20.5 billion), comprising 76.5% (30 June 2019: 75.6%) of total gross assets.

The portfolio’s weighted average lease expiry profile is 6.1 years as at 31 December 2019 (30 June 2019: 6.5 years). The average growth in trading densities in the retail portfolio for the year ended 31 December 2019 was 5.7% (31 December 2018: 6.9%) with the Mall of Africa’s trading density continuing to grow strongly by 10.1% (31 December 2018: 12.7%) for the calendar year ended. The Mall of Africa’s rent to sales ratio also improved to 9.1% (31 December 2018: 9.2%) despite the challenging trading conditions.

Net profit from property operationsNet profit from property operations, excluding the International Financial Reporting Standards (IFRS) adjustment for straight-line leasing and profits from the sale of sectional title units, increased by 16.7% to R745.2 million (31 December 2018: R638.7 million). On a like-for-like basis, net operating income increased by 7.6%.

Rental incomeRental income increased by 12.6% to R1.1 billion (31 December 2018: R1.0 million) due to the additional rental income from the buildings completed during the FY19 and FY20 years as well as in-force escalations and vacancies filled. Like-for-like rental growth of 8.1% was achieved. This was driven by the 12.8% growth in the office and mixed-use portfolio due to contractual escalations, full year rental income from tenants previously in beneficial occupation and filling of vacancies.

Property expensesThe property expenses increase of 5.6%, excluding cost of sale, to R385.8 million (31 December 2018: R365.3 million) was mainly due to newly completed buildings and an increase in municipal rates. Municipal charges increased by 14.7% to R267.3 million (31 December 2018: R233.0 million), not all of which are recoverable from tenants. The municipal charge recovery ratio improved from 89.5% to 90.2%.

The first-time adoption of IFRS 16: Leases resulted in a R15.7 million decrease in property expenses.

Property cost-to-income ratioThe property cost-to-income ratio calculated below is based on best practice recommendations first edition issued by the SA REIT Association. The Waterfall portfolio’s ratios include payments relating to the land lease rental obligation. The impact of IFRS 16: Leases has been ignored for the purpose of this calculation.

Property cost-to-income ratio

Unaudited31 December

2019%


2018%

Waterfall portfolioNet cost-to-income ratio 19.4 21.0Gross cost-to-income ratio 35.5 35.9Non-Waterfall portfolioNet cost-to-income ratio 17.9 18.0Gross cost-to-income ratio 36.9 37.0



OccupancyThe overall occupancy rate increased from 93.8% as at 30 June 2019 to 94.0% as at 31 December 2019. Unoccupied space at period end mainly relates to 2 Eglin, Brooklyn Bridge Office Park, Gateway West and The Ingress – building 2. Subsequent to 31 December 2019, 1 622m2 of The Ingress – building 2 was filled as well as 1 640m2 of Gateway West.


2019

Unaudited30 June

2019Sector occupancy % PGLA m2 % PGLA m2

Retail 97.8 289 257 97.1 287 573 Office and mixed-use 85.7 233 714 87.5 227 583

Existing portfolio 86.7 224 234 88.5 225 598 Completed during the period 67.9 9 480 38.1 1 985

Light industrial 100.0 173 266 97.1 175 561 Hotel 100.0 13 690 100.0 13 690 Portfolio occupancy 94.0 709 927 93.8 704 407 Add: filled post period-end 0.6 4 863 0.9 6 594 Add: 2 Eglin 2.9 22 215 2.8 20 732 Adjusted portfolio occupancy 97.5 737 005 97.5 731 733

Waterfall 98.6 457 471 97.7 448 656Non-Waterfall 95.9 279 534 97.1 283 077

Leases amounting to 19 941m2 (2.6% of total PGLA) expired during the period, of which 92.0% have been leased at a 7.5% reduction in rental rates (weighted on the average rental rate per square metre) with a weighted average lease escalation rate of 6.2%.

Lease renewalsPGLA

m2Success rate

%

Expiring rental rate increase*

%Escalation rate*

%Retail 4 106 96.6 7.1 7.5Office and mixed-use 15 835 90.9 (10.8) 5.9Portfolio 19 941 92.0 (7.5) 6.2

* Based on new and renewed leases pertaining to leases that expired during the six months ended 31 December 2019


Commentary (continued)ValuationsThe capitalisation rates (cap rates) for the 31 December 2019 completed building valuations remained largely unchanged except that of the industrial portfolio which increased by 25.0 basis points. Valuation inputs (i.e. long-term vacancy rates, rental reversions and market rental growth rates) were revised considering the prevailing macro-economic conditions resulting in a negative fair value adjustment of R324.6 million (31 December 2018: positive R90.4 million). This excludes the IFRS adjustment for straight-line leasing.

The office and mixed-use buildings that contributed to the negative fair value adjustment are 2 Eglin, Aurecon and Cell C. The fair value adjustments for the retail centres were negatively impacted by the capital expenditure on tenant reconfigurations, rental reversion at Glenfair shopping centre and Lynwood Bridge retail refurbishments.

The information below is weighted on property values for all properties valued using the discounted cash flow (DCF) methodology:

Sector% of total portfolio

Discount rates %

Exit cap rates %

Cap rates %

Average value per PGLA

R/m2

Retail 52.28 12.35 7.14 6.88 32 670Office and mixed-use 37.62 13.24 8.12 7.74 28 312Light industrial 8.20 13.25 8.51 7.75 9 785Hotel 1.90 13.75 8.41 7.92 26 403Total portfolio 100.00 12.78 7.65 7.29 26 050

All property valuations as at 31 December 2019 are directors’ valuations which are in the main supported by external desktop valuations performed by Mills Fitchet Cape Proprietary Limited (Mills Fitchet) and Sterling Valuation Specialists Close Corporation (Sterling). All income producing properties were valued on the DCF methodology, except for 2 Eglin which was valued in accordance with the signed sale agreement.

Developments at WaterfallOverviewWaterfall’s location and ease of access creates an attractive value proposition for the continued development of a new city and logistics hub in the centre of Gauteng. Attacq has 941 179m2 (30 June 2019: 948 786m2) of developable bulk remaining at Waterfall. In addition, Attacq’s share of the industrial developable bulk in its joint venture with Sanlam Life Insurance Limited (Sanlam) is 161 703m2 (30 June 2019: 161 703m2).

The group’s core distributable earnings were negatively impacted by the holding costs relating to developments under construction and leasehold land. Holding costs include rates and taxes, marketing, security, and property owners’ association levies. For the six months ended 31 December 2019, the impact thereof on core DEPS was a reduction of 2.5cps (31 December 2018: negative 2.3cps).

The total asset value of Developments at Waterfall, including the value of the Attacq Sanlam joint venture (Waterfall Junction), increased to R2.4 billion (30 June 2019: R2.3 billion). Whilst these assets are currently not contributing to core distributable earnings, it creates the platform for future economic benefits through the utilisation of developable bulk in the development of new properties.


Developments at Waterfall


2019R’000

Audited30 June

2019R’000

Developments under construction 910 593 791 276Leasehold land* 1 007 734 1 076 193Pre-development capex 243 273 181 966Subtotal 2 161 600 2 049 435Waterfall Junction 116 293 111 620Inventory 25 322 51 137Assets held for sale 26 465 19 018Trade and other receivables 24 555 97 018Other assets 547 971Total 2 354 782 2 329 199

* Comprise the development rights, infrastructure and services

Completed developmentsDuring the six months ended 31 December 2019 six buildings were completed in Waterfall with a PGLA of 18 642m2. Waterfall Point building 1 and 3 are classified as inventory and Waterfall Point buildings 2 and 4 are classified as investment property.

Completed developmentsFirst lease commencement date

Multi or single tenanted

TotalPGLA m2

Occupancy %

ValuationR’000

Waterfall City The Ingress – building 2 1 March 2020 Multi 4 484 37.2 80 931The Ingress – PSG Wealth 1 August 2019 Single 4 311 100.0 118 656Waterfall Point – building 1# Sectional title – inventory Multi 2 339 79.8 sold 17 273Waterfall Point – building 2 1 October 2019 Multi 2 585 100.0 63 762 Waterfall Point – building 3# Sectional title – inventory Multi 2 339 50.8 sold 42 031Waterfall Point – building 4 1 October 2019 Single 2 584 100.0 65 817Total 18 642 >80.0 388 470

# Inventory is valued at cost


Commentary (continued)Developments under constructionDevelopments under construction increased to R910.6 million (30 June 2019: R791.3 million) as a result of capital expenditure and fair value adjustments based on the progress of the developments offset by developments completed. The value of developments under construction as at 31 December 2019 is supported by desktop valuations performed by Mills Fitchet and Sterling adjusted for costs still to be incurred to final completion.

The following developments were under construction as at 31 December 2019. Attacq’s attributable share of the total of 76 067m2 PGLA is 43 530m2.

Developments under construction Sector

Anticipated practical completion date

Lease commencement date

EffectivePGLA (m2)*

Total PGLA (m2)*

Pre-let % based on

total PGLAWaterfall CityDeloitte head office+ Office Q3 FY20 1 April 2020 21 250 42 500 100.0Waterfall Corporate Campus, ContinuitySA+ Office Q3 FY20 1 March 2020 2 765 5 530 100.0Ellipse, phase I+ Residential Q1 FY22 n/a 8 522 17 044 >75.0#

Nexus Waterfall, Courtyard Hotel Hotel Q2 FY21 1 January 2021 6 236 6 236 100.0Waterfall Logistics HubNespresso Industrial Q4 FY20 1 June 2020 4 757 4 757 100.0Total 43 530 76 067 100.0

* Estimated PGLA of development. Subject to change upon final re-measurement post completion + Attacq has a 50.0% ownership# Pre-sold based on bankable sales

Deloitte head officeThe Deloitte head office development is a 50/50 joint venture between Attacq and Atterbury Property Holdings Proprietary Limited and its subsidiaries. Practical completion was reached on 31 January 2020, with lease commencement date set at 1 April 2020. The consolidation of the Deloitte Pretoria and Johannesburg offices will result in 3 200 Deloitte employees occupying the building. The development is targeting a silver United States Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) (as built and commissioning) certification and includes a 220 kWp photovoltaic system.

Waterfall Corporate CampusWaterfall Corporate Campus is a 50/50 joint venture between Attacq and Zenprop Property Holdings Proprietary Limited (Zenprop). The development will comprise of seven office buildings with a centrally located communal facility which includes a conference facility and restaurant. The estimated total PGLA for this development is 35 000m2 with an approximate total development cost of R880.0 million. The first three buildings (16 300m2) and communal facility are completed. Practical completion for the fourth building, to be occupied by ContinuitySA, was reached on 31 January 2020. Construction on a speculative basis for the fifth building commenced after 31 December 2019 and is expected to be completed in quarter 1 FY21. The remaining buildings will be developed in a phased approach subject to market demand. All buildings are targeting a minimum four-star GBCSA (by design and as built) certification.

EllipseAs part of the “live, work, play” urban environment in Waterfall City, Attacq is co-developing Ellipse, a residential offering, in Waterfall City. This high-rise luxury residential development comprises four towers with approximately 620 residential units in total. The development is a 50/50 joint venture with Portstone Developments Proprietary Limited (Portstone) with Phase I consisting of two towers of 269 units with an estimated development cost of R520.0 million. Construction has commenced and the anticipated completion date of Phase I is quarter 1 FY22.


Nexus Waterfall, Courtyard HotelNexus Waterfall comprises three office buildings and a “new concept” 4-star Courtyard Hotel which will be operated by, and leased to, the City Lodge Hotel Group for 15 years. The total PGLA of the precinct is estimated at 32 000m2 at an estimated total development cost of R925.0 million. Construction of the 10-storey, 168-key hotel has commenced at an approximate development cost of R1.3 million per key. Construction of the remaining precinct will be in a phased approach subject to market demand. Each building is targeting a minimum four-star GBCSA (by design and as built) certification.

Nespresso A 4 757m2 warehouse with an office component for Top Vending – Nespresso South Africa is currently under construction. The design of the Nespresso building is based on the completed midi-unit scheme within the same land parcel and represents the final development for Land Parcel 8 North.

Leasehold landLeasehold land relates to the notarially secured leasehold rights in respect of Waterfall, held by Attacq Waterfall Investment Company Proprietary Limited (AWIC), a 100.0% subsidiary of Attacq.

As at 31 December 2019, AWIC has 941 179m2 of developable bulk remaining, held on leasehold land, the core of which is 770 227m2 in Waterfall City, zoned for mixed-use developments. The Waterfall Logistics Hub, which is zoned for light industrial tenants, comprises a further 170 952m2.

The group carries leasehold land, encompassing both development rights and infrastructure, at fair value. The group has previously determined fair value with reference to a residual land valuation technique which is dependent upon several inputs and underlying assumptions. With effect from the financial year ending 30 June 2020, the group has adopted a comparable sales valuation technique for leasehold land which is more in line with international best practice. The comparable sales technique is an internationally accepted technique to assess the fair value of land. The adoption of this valuation technique is a change in estimate in terms of IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors.

For the application of the comparable sales technique, the leasehold land has been categorised into three different categories and valued accordingly. The below table summarises the application:

Category Characteristics ValuationUnserviced leasehold land

Leasehold land with development potential

Land area multiplied by market rate per m2 for unserviced land

Partially serviced leasehold land

Leasehold land at varying degrees of servicing

Land/bulk area multiplied by market rate per m2 of serviced bulk, reduced by future costs of servicing, and leasehold liability; DCF factor applied relative to timelines of servicing

Fully serviced leasehold land

Leasehold land with Section 82 certificates and a small measure of servicing required

Land/bulk area multiplied by market rate per m2 of serviced bulk, reduced by future costs of servicing, and leasehold liability

The output of the comparable sales valuation technique determines the valuation of leasehold land, being in aggregate development rights together with infrastructure and services. For the reporting period, leasehold land has been impaired by R51.2 million (31 December 2018: R15.9 million). This valuation represents a directors’ valuation, conducted in consultation with an external valuer. An independent external valuation, on a comparable sales basis, will be carried out for the purposes of the 30 June 2020 financial results.

Waterfall JunctionAttacq, through a joint venture between Sanlam (76.43%) and Attacq (23.57%), has access to a further 686 054m2 (effective share 161 703m2) of industrial developable bulk in Waterfall. Attacq has been appointed as the development, property and asset manager for the joint venture. The development of Waterfall Junction has been activated with the design and commencement of a bulk water pipeline as well as roads and other infrastructure.



Investment in MASOverviewCore distributable earnings of R117.1 million (31 December 2018: R86.6 million) were generated by the investment in MAS representing MAS dividends received in cash of R121.2 million (31 December 2018: R97.3 million) adjusted for realised hedging gains net of tax and interest paid on euro debt funding associated with the investment.

Description


2019R’000


2018R’000

MAS dividend received 121 177 97 300Plus: Realised hedging gain 7 092 2 323Less: Tax paid on hedging (2 090) (3 624)Less: Interest paid on euro funding (9 093) (9 420)Core distributable earnings from MAS 117 086 86 579

Attacq’s shareholding in MAS decreased to 20.7% (30 June 2019: 22.8%) due to an increase in issued shares. The market value of Attacq’s investment, based on the 31 December 2019 MAS share price of R19.10 (28 June 2019: R21.90) is R2.8 billion (30 June 2019: R3.2 billion). Attacq’s equity accounted investment at 31 December 2019 is R3.0 billion (30 June 2019: R3.2 billion).

Hedging of MAS dividends and tax implicationsAttacq hedged a portion of MAS’ final FY19 dividend received during October 2019 and realised a taxable foreign exchange profit of R7.1 million (31 December 2018: R2.3 million). Tax relating to the foreign exchange profit amounted to R2.1 million (31 December 2018: R3.6 million).

Attacq has the following currency hedges in place in respect of expected future MAS dividends:

MAS dividend period Anticipated timing of receiptAmount hedged

EUR’millionFixed rate

RAmount hedged

R’millionInterim FY20 March 2020 4.5 17.31 77.2Final FY20 October 2020 5.9 17.63 104.2Interim FY21 March 2021 1.7 17.71 29.2

Strategy and performanceUnder new management, MAS has announced a focus on maximising long-term returns from investments by concentrating on capital allocation, operations, leverage and cost efficiency in order to sustainably grow distributable earnings per share rather than focus on specific distribution targets. MAS has consequently withdrawn its prior guidance to the market of targeting 30.0% growth in dividends per share by the year ending 2022 and has targeted paying, subject to certain assumptions, at least 100.0% of MAS’ adjusted distributable earnings to shareholders on a bi-annual basis for the foreseeable future.

MAS’ adjusted total earnings for the period increased by 20% to EUR27.6 million compared to the prior period, with the contribution made by MAS’ CEE assets increasing 63.4% over the prior period and making up 46.0% of total adjusted earnings as compared to 33.8% of total adjusted earnings for the prior period. MAS’ previously communicated strategy of exiting its mature Western European assets to invest into the higher growth CEE markets is being accelerated and EUR544 million of Western European assets is earmarked for disposal by 2022. MAS IFRS NAV declined by 4.4% from 134.6 euro cents per share as at 30 June 2019 to 128.6 euro cents per share due to the 10.5% increase in issued shares offset by positive fair value adjustments on the CEE portfolio.


Development pipelineDuring the period, the Prime Kapital CEE Development joint venture completed the Zalau Value Centre and DN1 Value Centre at initial yields of 12.2% and 11.1% respectively. The remaining development pipeline totals EUR773.0 million, made up of EUR220.8 million of assets under construction and a further EUR557.2 million of projects under permitting. Developments under construction include the 32 900m2 Dambovita regional mall (Targoviste, Romania), the 92 000 m2 super-regional Mall Moldova (Iasi, Romania), a 17 000m2 mall (Sfantu Gheorghe, Romania) and the 465-apartment Marmura Residence development (Bucharest, Romania). EUR258.0 million of the pipeline under permitting relates to the large-scale mixed used Silk District development in Iasi, Romani. The expected construction start date of the project has been moved to September 2020 from the second quarter of 2020 due to a delay in receiving local council approvals.

Interim dividendMAS has announced an interim dividend per share of 4.24 euro cents per share to be paid on or about 3 April 2020.

For further information in respect of MAS’ results, refer to the MAS website at www.masrei.com.

NOTES


Rest of Africa retail investmentsOverviewDuring the year the Rest of Africa retail investments generated core distributable earnings of R12.1 million (31 December 2018: R6.8 million). As at 31 December 2019, the value of Attacq’s Rest of Africa retail investments was R759.5 million (30 June 2019: R820.1 million) representing 2.8% (30 June 2019: 3.0%) of Attacq’s total gross assets (including cash balances held in AIH International Limited (AIHI), a wholly-owned subsidiary of Attacq).

Attacq’s Rest of Africa retail investment comprises:

• Cash held by AIHI of R174.3 million (30 June 2019: R180.6 million) • A 31.8% shareholding in AttAfrica, which is invested in three retail properties in Ghana; and• A 25.0% shareholding in Gruppo Investment Nigeria (Gruppo), the owner of Ikeja City Mall, Nigeria.

Attacq’s strategy, which is aligned with its co-shareholders, is to seek an orderly disposal of these assets and recycle proceeds into interest-bearing debt. Progress has been made in implementing this strategy with the exit of Achimota Retail Centre (Accra, Ghana) during the 2019 financial year and the sale of Manda Hill Shopping Centre (Lusaka, Zambia) in August 2019. A new funding arrangement is in place between AttAfrica shareholders from 1 January 2020, with all capital requirements and distributions to be on a pari passu basis going forward. Asset management of the AttAfrica assets has been internalised and in-principle agreement as been reached to acquire the minority shareholdings in AttAfrica for a nominal amount. Operationally, trading conditions remain challenging, impacted by local currency weakness against the US dollar and poor tenant depth.

Attacq’s investment in AttAfrica, through its shareholder loan, amounted to R306.6 million (30 June 2019: R362.5 million). A reversal of impairment of R13.4 million (30 June 2019: impairment of R418.5 million) was recognised against the loan in the current period due to a net repayment of the loan of R67.1 million as well as a 0.8% strengthening of the rand against the US dollar. During the period, no cash interest was received from AttAfrica (31 December 2018: R33.6 million).

The group’s loan to Gruppo totalled R278.6 million (30 June 2019: R276.9 million). The increase in the investment value is as a result of capitalised interest of R15.0 million (31 December 2018: R24.0 million) of which R12.1 million (31 December 2018: R7.2 million) was received in cash, set off by the 0.8% strengthening of the rand against the US dollar (31 December 2018: 2.6%).

Attacq does not have any debt associated with its Rest of Africa retail investments and any proceeds will be utilised at the group’s discretion.

Assets held for saleUnaudited

31 December 2019

R’000

Audited30 June

2019R’000

Transactions with joint venture partnersEllipse 26 465 19 018Investment property2 Eglin, Sunninghill 135 000 –Torre Industries – 77 000InvestmentsRainprop Proprietary Limited – 763Newtown precinct 80 000 –Total 241 465 96 781



The proceeds from the sale of the building previously let to Torre Industries was received on 11 October 2019. The investment in Rainprop Proprietary Limited has been impaired to Rnil. The R26.5 million (30 June 2019: R19.0 million), in respect of the Ellipse leasehold land, has been received upon transfer to Portstone.

Sale agreements have been entered into for the disposal of 2 Eglin, Sunninghill and Newtown precinct which are subject to conditions precedent. The sale of these two assets allows the recycling of capital which will be positive on future core distributable earnings and cash flow.

Non-current assets held for sale are unencumbered and upon transfer of the assets, the cash received will used for effective capital allocation.

BorrowingsTotal interest-bearing borrowings increased by 2.7% to R10.8 billion (30 June 2019: R10.5 billion) due to capital requirements for developments at Waterfall. Committed but undrawn facilities as at 31 December 2019 was R895.7 million (30 June 2019: R1.4 billion), of which R861.5 million is rand-denominated. These facilities exceed the cost-to-complete on developments under construction of R220.7 million (30 June 2019: R582.4 million). Subsequent to 31 December 2019, a facility was secured to fund the entire development of Ellipse phase I.

The euro-denominated borrowings of R1.4 billion (30 June 2019: R1.5 billion) are secured by a combination of a cession of MAS shares and mortgage bonds over investment properties.

The interest cover ratio improved to 1.91 times (30 June 2019: 1.85 times). Gearing, calculated as total interest-bearing debt less unrestricted cash on hand as a percentage of total assets less cash on hand and right of use asset recognised as a result of IFRS 16: Leases, increased to 39.1% (30 June 2019: 37.7%). The increase in gearing is mainly due to lower investment property values and the impact of the strengthening of the rand against the euro related to the investment in MAS.

Units


2019

Audited 30 June

2019Total drawn facilities R’000 10 799 330 10 516 731 Total weighted average loan term years 3.1 3.6

Rand-denominated interest-bearing borrowingsCommitted facilities available R’000 10 301 862 10 415 826 Drawn facilities R’000 9 440 412 9 061 280Weighted average loan term years 3.4 3.9

Euro-denominated interest-bearing borrowingsCommitted facilities available R’000 1 393 158 1 498 072Drawn facilities R’000 1 358 918 1 455 451Weighted average loan term years 1.4 1.7

Interest cover ratio times 1.91 1.85

Gearing % 39.1 37.7


In order to mitigate rand-denominated interest rate risk, 91.0% (30 June 2019: 90.5%) of total committed facilities of R10.3 billion (30 June 2019: R10.4 billion) were hedged by way of fixed interest-rate loans or interest rate swaps. On a rand and euro denominated basis, this equates to 80.2% (30 June 2019: 78.7%), which exceeds the minimum hedging policy requirement of 70.0%. There are currently no euro-denominated hedges in place.

Units


2019

Audited30 June

2019Total hedged as a percentage of total committed facilities % 80.2 78.7Total hedged as a percentage of rand-denominated committed facilities % 91.0 90.5Total weighted average rand-denominated hedged term years 3.8 3.4

The weighted average cost of funding remained unchanged over the last six months at 8.8% (30 June 2019: 8.8%).

Units


2019

Audited30 June

2019Total weighted average cost of debt % 8.76 8.76Rand-denominated weighted average cost of debt % 9.73 9.86Weighted average floating interest rate % 8.69 8.95Premium for hedging % 1.04 0.91Euro-denominated weighted average cost of debt % 2.04 1.90Weighted average floating interest rate % 2.04 1.90Premium for hedging % – –

R1.2 billion (30 June 2019: R313.6 million) of the group’s interest-bearing debt is due for repayment in December 2020 and relates to one of the tranches in the Attacq Retail Fund Proprietary Limited (ARF) and Lynnwood Bridge Office Park Proprietary Limited (LBOP) syndicated loan. Attacq is in the process of refinancing the maturing tranche and targets an implementation date of 30 June 2020 for the transaction.

Prior to 31 December 2019, Attacq successfully negotiated the extension of the maturity date for Facility 1 of the euro-denominated funding provided by Standard Bank. Facility 1 is for an amount of EUR27.5 million (R433.0 million); the maturity date was extended from 31 July 2020 to 31 January 2021.

Due to lower forward interest rates, an increase in other financial liabilities of R18.3 million (31 December 2018: increase R15.9 million) was recorded on the mark-to-market valuation of interest rate swaps.

ProspectsDuring September 2019 Attacq indicated that it was targeting DPS growth of between 8.0% and 10.0% for the year ending 30 June 2020. Attacq achieved DPS growth of 11.1% for the six months ended 31 December 2019 and has revised its target for the full year ending 30 June 2020 to a growth in DPS of approximately 10.0%.

This guidance is based on the following assumptions:

• Achieving forecasted rental income based on contractual terms and anticipated market-related renewals• Tenants will be able to absorb the recovery of rising utility costs and municipal rates• The expected roll-out of the current and budgeted development portfolio• No unforeseen circumstances such as major corporate tenant failures or deterioration of the macro-economic environment

The prospects have not been reviewed or reported on by Attacq’s auditors.



Restatement of Attacq’s prior period interim financial statementsError on transition adjustment relating to IFRS 9: Financial InstrumentsIFRS 9: Financial instruments became effective for all periods beginning on or after 1 January 2018. The group considered the impact of IFRS 9: Financial instruments at 31 December 2018. Based on initial assessments, the impact was not materially different from IAS 39: Financial Instruments: Recognition and Measurement.

The impact of the adoption of IFRS 9: Financial instruments was reassessed for the period ended 30 June 2019 and the total equity balance at 1 July 2018 was restated. Consequently, the restatements were applied to the interim reporting period ended 31 December 2018.

Error in discounting intercompany loans not payable on demandAttacq grants intercompany loans to subsidiaries and associates. For the loans granted to AWIC, ARF, Brooklyn Bridge Office Park Proprietary Limited, LBOP, Lynnaur Investments Proprietary Limited and Nieuwtown, subordination agreements are in place. Consequently, these loans are not repayable to Attacq on demand. In terms of IFRS 9: Financial Instruments (2018: IAS 39: Financial Instruments: Recognition and Measurement), loans to group companies should be recognised initially at fair value. Due to the loans to the mentioned entities, not being repayable on demand, the fair value of the loan at initial recognition will be lower than the amount advanced. The loans were discounted back for the duration of the subordination period at the incremental rate of borrowing of the underlying subsidiaries and associate. Interest was recognised for the period, on the discounted loan balances using the effective interest rate method.

The discounting of the loans to the subsidiaries are eliminated on consolidation of the group’s condensed unaudited consolidated interim financial statements and therefore has no impact on the group’s condensed unaudited consolidated interim financial statements.

Error in classification of AttAfrica and Gruppo loansThe group, through its wholly-owned subsidiary AIHI, granted loans to AttAfrica and Gruppo. The loan to AttAfrica is repayable on 31 December 2020 and the loan to Gruppo is repayable at Gruppo’s discretion. These loans have been reclassified from current assets to non-current assets.

Error in classification of Nieuwtown loanThe group granted a loan to Nieuwtown and as per the subordination agreement the loan to Nieuwtown has been subordinated until 29 April 2042. This loan has been reclassified from current assets to non-current assets.

The impact of these restatements on the key metrics is as follows:

31 December 2018

Unobservable inputsAs reported

centsRestatement

centsRestated

centsNAVPS 2 366 (3) 2 363DEPS 45.0 – 45.0


Restatement of consolidated interim financial statements for 31 December 2018A restatement is required in terms of IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors because of the material adjustments to individual line items of the financial statements as detailed below:

IMPACT ON CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEAs reported


2018R’000

RestatementR’000

RestatedUnaudited

31 December2018

R’000Impairment losses (389 630) 19 109 (370 521)Operating profit 253 710 19 109 272 819 Net income from associates and joint ventures 24 007 (6 552) 17 455 Investment income 138 552 255 138 807 Profit before taxation 41 814 12 812 54 626 Profit for the period 31 332 12 812 44 144 Attributable to:

Owners of the holding company 31 332 12 812 44 144 Total comprehensive income for the period 25 468 12 812 38 280 Attributable to:

Owners of the holding company 25 468 12 812 38 280

Earnings per shareBasic (cents) 4.5 1.8 6.3 Diluted (cents) 4.4 1.8 6.2

IMPACT ON CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs reported


2018R’000

RestatementR’000

RestatedUnaudited

31 December2018

R’000ASSETSNon-current assetsInvestment in associates and joint ventures 3 329 163 42 394 3 371 557 Loans to associates and joint ventures – 1 085 452 1 085 452 Other financial assets 388 307 (549) 387 758 Total non-current assets 25 379 967 1 127 297 26 507 264 Current assetsLoans to associates and joint ventures 1 283 417 (1 144 631) 138 786 Other financial assets 26 822 (428) 26 394 Total current assets 2 360 084 (1 145 059) 1 215 025 Total assets 27 916 795 (17 762) 27 899 033 Equity and liabilitiesEquityDistributable reserves 9 052 751 (43 320) 9 009 431 Available-for-sale reserve 283 506 25 558 309 064 Equity attributable to owners of the holding company 16 640 810 (17 762) 16 623 048 Total equity and liabilities 27 916 795 (17 762) 27 899 033 The following information does not form part of the statement of financial position:Net asset value per share (cents) 2 366 (3) 2 363 * Only line items affected by the restatement are presented


Restatement of consolidated interim financial statements for 31 December 2018IMPACT ON RECONCILIATION BETWEEN EARNINGS AND HEADLINE EARNINGS

As reportedUnaudited

31 December2018

R’000Restatement

R’000

RestatedUnaudited

31 December2018

R’000Profit for the period 31 332 12 812 44 144 Headline earnings adjustments 169 696 12 557 157 139

Net impairment of associates and other investments 389 617 (19 109) 370 508Net income from associates and joint ventures (79 055) 6 552 (72 503)

Headline earnings 201 028 255 201 283Headline earnings per share

Basic (cents) 28.6 – 28.6Diluted (cents) 28.3 – 28.3

IMPACT ON RECONCILIATION OF PROFIT FOR THE PERIOD TO DISTRIBUTABLE EARNINGSThe reconciliation of profit to distributable earnings is a non-form part of the condensed financial statements for the periods and year presented.

As reportedUnaudited

31 December2018

R’000Restatement

R’000

RestatedUnaudited

31 December2018

R’000Profit for the year attributable to Attacq’s shareholders 31 332 12 812 44 144 Adjustment for net non-cash interest from associates (64 786) (255) (65 041)Net income from associates and joint ventures (24 007) 6 552 (17 455)Net impairment of associates, other investments and loans 389 617 (19 109) 370 508

* Only line items affected by the restatement are presented


Declaration of a cash dividend The board declared an interim gross cash dividend of 45.00000 cents per share, for the six months ended 31 December 2019, out of the company’s distributable income.

The dividend is payable to Attacq shareholders in accordance with the timetable set out below:

2020Last day to trade cum dividend Tuesday, 17 MarchShares trade ex dividend Wednesday, 18 MarchRecord date Friday, 20 MarchPayment date Monday, 23 March

Notes:

1. Share certificates may not be dematerialised or rematerialised between Wednesday, 18 March 2020 and Friday, 20 March 2020, both days inclusive.

2. Payment of the dividend will be made to shareholders on Monday, 23 March 2020. In respect of dematerialised shareholders, the dividend will be transferred to the Central Securities Depository Participant (CSDP) account or broker account on Monday, 23 March 2020. Certificated shareholders’ dividend will be deposited on or about Monday, 23 March 2020.

3. Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend will be held in trust by the transfer secretaries pending receipt of the relevant certificated shareholder’s banking details whereafter the cash dividend will be paid via electronic transfer into the personal bank accounts of certificated shareholders.

In accordance with Attacq’s status as a REIT with effect from 29 May 2018, 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 dividend on the shares will be deemed to be a taxable dividend for South African tax purposes in terms of section 25BB of the Income Tax Act.

Tax implications for South African resident shareholdersThe dividend 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 income tax (in terms of the exclusion to the general dividend exemption contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because it is a dividend distributed by a REIT. This dividend is, however, exempt from dividend withholding tax (dividend tax) in the hands of South African tax resident shareholders, provided that the South tax resident shareholders provide 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 exempt from dividends tax

b) written undertaking to inform the CSDP, broker or the company, as the case may be, should the circumstances affecting the exemption change or the beneficial owner cease to be the beneficial owner

c) oth in the form prescribed by the Commissioner for the South African Revenue Service.

Shareholders are advised to contact their 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.



Tax implications for non-resident shareholdersDividends received by non-resident shareholders will not be taxable as income and instead will be treated as an ordinary dividend which is exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. Any distribution received by a non-resident from a REIT will be subject to dividend withholding tax at 20.0%, 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 shareholder. Assuming dividend withholding tax will be withheld at a rate of 20.0%, the net dividend amount due to non-resident shareholders is 36.00000 cents per share.

A reduced dividend withholding 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). a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA

b). a written undertaking to inform their 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

c). both in the form prescribed by the Commissioner for the South African Revenue Service.

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

The number of shares in issue as at 31 December 2019 and as at the date of this announcement is 750 334 130 ordinary shares of no par value which includes 46 427 553 treasury shares. Attacq’s tax reference number is 9241/038/64/6.

Subsequent eventsIn line with IAS 10: Events after the reporting period, the declaration of the dividend occurred after the six-month period under review, resulting in a non-adjusting event which is not recognised in the financial statements. There are no further subsequent events noted.

CommitmentsPlease refer to developments under construction and developments in the pipeline for future capital commitments. Future commitments will be funded by undrawn banking facilities, cash on hand and proceeds from capital recycling activities.

Issue of sharesDuring the period under review, 411 353 shares were issued in terms of long-term incentive awards.

Change in director and company secretaryThys du Toit resigned from the board of directors with effect from 14 November 2019. Anda Matwa has been appointed as company secretary from 1 March 2020 and is replacing Peter de Villiers who has been acting as interim company secretary.

Basis of preparation, changes in accounting policies and change in accounting estimatesThe condensed unaudited consolidated interim financial statements for the six months ended 31 December 2019 have been prepared in accordance with IFRS, IAS 34: Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the JSE Listings Requirements and the requirements of the Companies Act of South Africa. These interim results was compiled under the supervision of R Nana CA(SA), CFO of Attacq.

The accounting policies applied in the preparation of the condensed unaudited consolidated interim financial statements are in terms of IFRS and are consistent with the accounting policies applied in the preparation of the previous consolidated annual financial statements for the year ended 30 June 2019, with the exception of the adoption of all the new, revised and amended accounting pronouncements as issued by the International Accounting Standards Board (IASB) which were effective for Attacq from 1 July 2019. In particular, the following standards had an impact on Attacq’s unaudited consolidated interim financial statements:


Impact on the condensed unaudited consolidated interim financial statementsIFRS 16: LeasesLessee accountingIFRS 16: Leases introduces a single, on balance sheet lease accounting model for lessees. Attacq elected to adopt IFRS 16: Leases from 1 July 2019 using the modified retrospective approach without restating comparative figures. There was no impact to opening retained earnings on adoption of IFRS 16: Leases, which replaces the existing lease standard and the related interpretations. In applying IFRS 16: Leases for the first time, Attacq used certain practical expedients permitted by the standard, namely a single discount rate for leases with reasonably similar characteristics. All leases that met the definition of a lease under IAS 17: Leases were carried forward as a lease under IFRS 16: Leases. The liability was measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate at 1 July 2019. The incremental borrowing rate applied to the lease liability on 1 July 2019 ranged between 8.5% to 9.5%. This range was calculated with reference to the weighted average cost of debt. Attacq will recognise the right-of-use asset and lease liability for its operating lease property. The nature of expenses related to this lease will now change from an operating lease expensed to the statement of profit or loss and other comprehensive income to an asset measured at fair value and/or cost hence being fair valued and depreciated. Finance costs includes interest on the lease liability. On 1 July 2019 a lease liability was raised and subsequently amortised over the period of the lease.

Lessor accountingLessor accounting remains substantially unchanged at Attacq, as a lessor, has operating leases only.


2019R'000


2018R'000

Impact on the statement of profit or loss and other comprehensive incomeProperty expenses

Rental paid (5 824) (21 477)Operating expenses

Rental paid (456) (2 830)Depreciation on right-of-use asset (1 053) –

Finance costsInterest expense on lease liability (11 359) –

Fair value adjustmentsFair value adjustment on right-of-use asset (10 067) –

Impact on the statement of financial positionNon-current assets

Investment property 239 207 –Property and equipment 10 738 –

Non-current liabilitiesLease liability 224 895 –

Current assetsLease liability 24 373 –

Impact on the statement of cash flowsCash flow from operating activities

Rental paid (6 280) (24 307)Finance cost on lease liability (11 216) –

Cash flow from financing activitiesRepayment of lease liability (11 939) –



Change in accounting estimateThe group’s development rights together with infrastructure and services, is classified as investment property and is measured in terms of IAS 40: Investment Property’s fair value model. As discussed under the heading “leasehold land”, the group has changed its valuation technique to comparable sales to determine such fair value.

IAS 40: Investment Property requires that fair value assessments, required where such investment property is carried under the fair value model, be driven by IFRS 13: Fair value measurements which guides that valuation technique changes shall be accounted for as a change in accounting estimate in accordance with IAS 8: Accounting policies, Changes in accounting estimates and Errors.

The group’s investment properties are valued internally by the directors at interim reporting periods and externally by independent valuers for year-end reporting. In terms of IAS 40: Investment Property and IFRS 7: Financial Instruments: Disclosures, the group’s investment properties are measured at fair value and are categorised as level 3 investments. In terms of IAS 39: Financial Instruments: Recognition and Measurement and IFRS 7: Financial Instruments: Disclosure, the group’s interest rate derivatives are measured at fair value through profit or loss and are categorised as level 2 investments. In terms of IAS 39: Financial Instruments: Recognition and Measurement, listed investments are measured at fair value, being the quoted closing price at the reporting date, and are categorised as level 1 investments. Unlisted investments are categorised as level 3 investments. There were no transfers between levels 1, 2 and 3 investments during the period. The valuation methods applied are consistent with those applied in preparing the previous consolidated financial statements.

The condensed interim financial statements have not been audited or reviewed by Attacq’s auditors.

P Tredoux M HammanChairman CEO

3 March 2020


Condensed consolidated statement of profit or loss and other comprehensive income


2019R’000

RestatedUnaudited

31 December2018

R’000

Audited30 June

2019R’000

Gross revenue 1 194 948 1 107 066 2 283 244 Rental income 1 130 999 1 004 001 2 057 548 Straight-line lease income adjustment 56 421 81 319 197 124 Sale of sectional title units 7 528 21 746 28 572

Gross property expenses (384 406) (386 467) (780 690)Property expenses (385 828) (365 346) (749 143)Cost of sales of sectional title units 1 422 (21 121) (31 547)

Net profit from property operations 810 542 720 599 1 502 554 Other income 61 334 39 523 89 532 Operating expenses (83 622) (83 508) (155 485)Impairment losses (265 278) (370 521) (505 148)Other expenses (31 689) (33 274) (170 138)Operating profit 491 287 272 819 761 315 Amortisation of intangible asset (9 982) (9 982) (19 964)Fair value adjustments (352 971) 71 103 (801 735)

Investment properties (333 125) 86 962 (665 110)Other financial assets and liabilities (18 271) (15 859) (135 761)Other investments (1 575) – (864)

Net income from associates and joint ventures 188 405 17 455 124 770 Investment income 49 964 138 807 230 549 Finance costs (437 671) (435 576) (855 465)(Loss)/profit before taxation (70 968) 54 626 (560 530)Income tax credit/(expense) 33 941 (10 482) (42 058)(Loss)/profit for the period/year (37 027) 44 144 (602 588)Attributable to:

Owners of the holding company (37 027) 44 144 (602 588)Other comprehensive income/(loss)Income/(loss) on available-for-sale financial assets 9 273 (5 867) (6 144)Taxation relating to components of other comprehensive income – 3 (27 566)Other comprehensive income/(loss) for the period/year net of taxation 9 273 (5 864) (33 710)Total comprehensive (loss)/income for the period/year (27 754) 38 280 (636 298)Attributable to:

Owners of the holding company (27 754) 38 280 (636 298)

Earnings per shareBasic (cents) (5.3) 6.3 (85.7)Diluted (cents) (5.3) 6.2 (85.7)



2019R’000

RestatedUnaudited

31 December2018

R’000

Audited30 June

2019R’000

AssetsNon-current assetsProperty and equipment 18 808 37 083 10 069Investment properties 20 319 983 20 369 160 20 081 544

Per valuation 21 415 555 21 292 503 21 120 691Straight-line lease debtor (1 095 572) (923 343) (1 039 147)

Straight-line lease debtor 1 095 572 923 343 1 039 147Deferred initial lease expenditure 5 558 8 129 6 860Intangible assets 174 685 256 520 184 667Goodwill 67 774 67 774 67 774Investment in associates and joint ventures 3 003 827 3 371 557 3 217 711Loans to associates and joint ventures 278 586 1 085 452 879 955Other financial assets 389 362 387 758 386 709Other investments – 488 –Total non-current assets 25 354 155 26 507 264 25 874 436Current assetsTaxation receivable 5 025 2 713 4 806Trade and other receivables 211 092 225 707 203 450Inventory 84 626 93 078 51 137Loans to associates and joint ventures 427 915 138 786 113 649Other financial assets 25 295 26 394 32 656Cash and cash equivalents 711 682 728 347 673 486Total current assets 1 465 635 1 215 025 1 079 184Non-current assets held for sale 241 465 176 744 96 781Total assets 27 061 255 27 899 033 27 050 401Equity and liabilitiesEquityStated capital 6 473 103 6 462 389 6 463 585Distributable reserves 7 713 300 9 009 431 7 954 665Fair value through other comprehensive income reserve 290 491 309 064 281 218Share-based payment reserve 118 539 106 511 117 118Foreign currency translation reserve 473 064 839 868 771 146Acquisition of non-controlling interests reserve – (104 215) –Equity attributable to owners of the holding company 15 068 497 16 623 048 15 587 732

Condensed consolidated statement of financial position


Condensed consolidated statement of financial position (continued)


2019R’000

RestatedUnaudited

31 December2018

R’000

Audited30 June

2019R’000

Non-current liabilitiesLong-term borrowings 9 582 193 10 007 313 10 203 134 Deferred tax liabilities 202 468 185 367 238 539 Other financial liabilities 288 922 141 955 268 112 Cash settled share-based payments 306 376 537 Lease liability 224 895 – – Total non-current liabilities 10 298 784 10 335 011 10 710 322 Current liabilitiesOther financial liabilities 4 919 38 668 29 439 Lease liability 24 373 – – Taxation payable 1 328 3 354 1 228 Cash settled share-based payments 514 329 89 Trade and other payables 422 488 361 735 389 690 Provisions 23 215 33 802 18 304 Short-term portion of long-term borrowings 1 217 137 503 086 259 611 Total current liabilities 1 693 974 940 974 698 361 Liabilities directly associated with non-current assets held for sale – – 53 986 Total liabilities 11 992 758 11 275 985 11 462 669 Total equity and liabilities 27 061 255 27 899 033 27 050 401 The following information does not form part of the statement of financial positionNet asset value per share (cents) 2 141 2 363 2 216


Reconciliation between earnings and headline earnings


2019R’000

RestatedUnaudited

31 December2018

R’000

Audited30 June

2019R’000

(Loss)/profit for the period/year (37 027) 44 144 (602 588)Headline earnings adjustments 554 071 157 139 1 124 202

Loss/(profit) on disposal of associate – 2 597 (14 550)(Profit) on disposal of other investments – (2 180) –Loss/(profit) on disposal of investment property 2 – (11 095)Net impairment of associates and other investments 265 115 370 508 550 023 Impairment of intangible asset – – 61 871 Fair value adjustments 334 700 (71 103) 665 974 Net income from associates and joint ventures (60 093) (72 503) (46 995)Tax effect of adjustments 14 347 (70 180) (81 026)

Headline earnings 517 044 201 283 521 614 Number of shares in issue* 703 906 577 703 395 224 703 495 224 Weighted average number of shares in issue* 703 669 602 703 178 702 703 311 279 Diluted weighted average number of shares in issue* 712 014 065 711 327 206 710 613 023 Headline earnings per share

Basic (cents) 73.5 28.6 74.2 Diluted (cents) 72.6 28.3 73.4

* Adjusted for 46 427 553 treasury shares



2019R’000

RestatedUnaudited

31 December2018

R’000

Audited30 June

2019R’000

Cash flow generated from operating activities 353 501 213 554 653 327 Cash generated from operations 649 612 466 061 1 170 806 Investment income 38 010 97 428 186 552 Dividend income 121 177 99 600 191 045 Finance costs (453 049) (432 980) (868 330)Settlement of cash settled share based payments – (14 389) (14 389)Taxation paid (2 249) (2 166) (12 357)Cash flow (utilised in) investing activities (336 202) (554 218) (819 409)Property and equipment acquired (1 386) (1 545) (3 591)Investment properties acquired (434 088) (528 600) (907 330)Associates and joint ventures disposed – – 96 179 Obtaining control of entity 18 079 – – Other investments acquired (7 525) – – Other financial assets repaid/(raised) 11 718 (25 170) (27 072)Additions to deferred initial lease expenditure – (4 030) (3 536)Cash flow relating to non-current assets held for sale 77 000 5 127 25 941 Cash flow generated from/(utilised in) financing activities 20 897 (152 115) (381 558)Capital raised – 2 281 3 477 Dividends paid (288 433) (520 334) (805 250)Repayment of lease liability (11 939) – – Long-term borrowings raised 1 223 446 384 445 1 599 898 Long-term borrowings repaid (923 254) (8 966) (1 194 443)Loans to associates and joint ventures repaid/(advanced) 42 131 (26 391) 884

Other financial liabilities (repaid)/raised (21 054) 16 850 13 876

Total cash movement for the period/year 38 196 (492 779) (547 640)Cash at the beginning of the period/year 673 486 1 221 126 1 221 126 Total cash at the end of the period/year 711 682 728 347 673 486

Condensed consolidated statement of cash flows



2019R’000

RestatedUnaudited

31 December2018

R’000

Audited30 June

2019R’000

Cash flow generated from operating activities 353 501 213 554 653 327 Cash generated from operations 649 612 466 061 1 170 806 Investment income 38 010 97 428 186 552 Dividend income 121 177 99 600 191 045 Finance costs (453 049) (432 980) (868 330)Settlement of cash settled share based payments – (14 389) (14 389)Taxation paid (2 249) (2 166) (12 357)Cash flow (utilised in) investing activities (336 202) (554 218) (819 409)Property and equipment acquired (1 386) (1 545) (3 591)Investment properties acquired (434 088) (528 600) (907 330)Associates and joint ventures disposed – – 96 179 Obtaining control of entity 18 079 – – Other investments acquired (7 525) – – Other financial assets repaid/(raised) 11 718 (25 170) (27 072)Additions to deferred initial lease expenditure – (4 030) (3 536)Cash flow relating to non-current assets held for sale 77 000 5 127 25 941 Cash flow generated from/(utilised in) financing activities 20 897 (152 115) (381 558)Capital raised – 2 281 3 477 Dividends paid (288 433) (520 334) (805 250)Repayment of lease liability (11 939) – – Long-term borrowings raised 1 223 446 384 445 1 599 898 Long-term borrowings repaid (923 254) (8 966) (1 194 443)Loans to associates and joint ventures repaid/(advanced) 42 131 (26 391) 884

Other financial liabilities (repaid)/raised (21 054) 16 850 13 876

Total cash movement for the period/year 38 196 (492 779) (547 640)Cash at the beginning of the period/year 673 486 1 221 126 1 221 126 Total cash at the end of the period/year 711 682 728 347 673 486

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Condensed consolidated statement of changes in equity


Office and mixed use

R’000RetailR'000

IndustrialR'000

HotelR'000

Waterfall developments

R'000Head office SA

R'000Total SA

R'000

MASEuropean

R'000Rest of Africa

R'000

Head office GlobalR'000

TotalR'000

STATEMENT OF FINANCIAL POSITIONInvestment property 6 568 694 9 766 067 1 468 344 353 278 – 2 000 18 158 383 – – – 18 158 383Waterfall developments – – – – 2 161 600 – 2 161 600 – – – 2 161 600

Developments under construction – – – – 910 593 – 910 593 – – – 910 593Leasehold land – – – – 1 251 007 – 1 251 007 – – – 1 251 007

Straight-line lease debtor 718 106 226 083 140 953 10 430 – – 1 095 572 – – – 1 095 572Intangible assets and goodwill – – – – – 242 459 242 459 – – – 242 459Investments in associates and joint ventures 1 079 26 564 – – – 1 018 28 661 2 975 166 – – 3 003 827Other financial assets 336 005 28 157 6 847 – – 33 689 404 698 9 959 – – 414 657Loans to associates and joint ventures – – – – 116 293 5 061 121 354 – 585 147 – 706 501Trade and other receivables 98 789 62 400 9 708 1 075 24 555 14 517 211 044 – – 48 211 092Cash and cash equivalents 76 486 104 796 6 098 7 547 349 431 537 365 – – 174 317 711 682Inventory 59 304 – – – 25 322 – 84 626 – – – 84 626Non-current assets held for sale 135 000 – – – 26 465 80 000 241 465 – – – 241 465Other assets 1 673 – – – – 27 499 29 172 – – 219 29 391Total assets 7 995 136 10 214 067 1 631 950 364 790 2 354 782 755 674 23 316 399 2 985 125 585 147 174 584 27 061 255Long-term borrowings – – – – – 9 440 412 9 440 412 – – 1 358 918 10 799 330Other financial liabilities – – – – – 293 841 293 841 – – – 293 841Deferred tax liabilities – – – – – 110 614 110 614 91 854 – – 202 468Trade and other payables 146 687 161 390 12 843 2 110 18 171 65 334 406 535 – – 15 953 422 488Lease liability 134 054 51 517 50 287 2 253 – 11 157 249 268 – – – 249 268Other liabilities – – – – 16 062 9 261 25 323 – – 40 25 363Total liabilities 280 741 212 907 63 130 4 363 34 233 9 930 619 10 525 993 91 854 – 1 374 911 11 992 758STATEMENT OF COMPREHENSIVE INCOMERental income 419 919 577 827 107 533 20 168 – 5 552 1 130 999 – – – 1 130 999Straight-line lease income adjustment 47 487 (5 941) 17 025 (2 150) – – 56 421 – – – 56 421Sale of inventory 7 528 – – – – – 7 528 – – – 7 528Property expenses (120 634) (235 550) (27 452) (5 985) – 3 793 (385 828) – – – (385 828)Cost of sales 1 422 – – – – – 1 422 – – – 1 422Net profit from property operations 355 722 336 336 97 106 12 033 – 9 345 810 542 – – – 810 542Other income 150 – 197 – – 8 200 8 547 7 567 45 220 – 61 334Operating expenses (15 821) (17 302) (3 987) (867) – (45 645) (83 622) – – – (83 622)Impairment losses (5) (5) (1 476) – – (263 771) (265 257) – (21) – (265 278)Other expenses – – (2) – (17 323) (7 689) (25 014) – (6 675) – (31 689)Operating profit/(loss) 340 046 319 029 91 838 11 166 (17 323) (299 560) 445 196 7 567 38 524 – 491 287Amortisation of intangible assets – – – – – (9 982) (9 982) – – – (9 982)Fair value adjustments (331 062) (39 375) (27 219) 16 609 50 922 (22 846) (352 971) – – – (352 971)Net income from associates 57 (5 441) – – – (173) (5 557) 193 962 – – 188 405Investment income 19 766 3 935 586 – – 10 679 34 966 – 14 998 – 49 964Finance costs (5 944) (2 402) (2 475) (108) – (412 259) (423 188) – – (14 483) (437 671)Profit/(loss) before tax 22 863 275 746 62 730 27 667 33 599 (734 141) (311 536) 201 529 53 522 (14 483) (70 968)Taxation – – – – – (10 595) (10 595) 44 576 – (40) 33 941Profit/(loss) for the period attributable to owners 22 863 275 746 62 730 27 667 33 599 (744 736) (322 131) 246 105 53 522 (14 523) (37 027)

Unaudited condensed segmental analysis31 December 2019



R’000RetailR'000

IndustrialR'000

HotelR'000


R'000Head office SA

R'000Total SA

R'000

MASEuropean

R'000Rest of Africa

R'000

Head office GlobalR'000

TotalR'000



Straight-line lease debtor 718 106 226 083 140 953 10 430 – – 1 095 572 – – – 1 095 572Intangible assets and goodwill – – – – – 242 459 242 459 – – – 242 459Investments in associates and joint ventures 1 079 26 564 – – – 1 018 28 661 2 975 166 – – 3 003 827Other financial assets 336 005 28 157 6 847 – – 33 689 404 698 9 959 – – 414 657Loans to associates and joint ventures – – – – 116 293 5 061 121 354 – 585 147 – 706 501Trade and other receivables 98 789 62 400 9 708 1 075 24 555 14 517 211 044 – – 48 211 092Cash and cash equivalents 76 486 104 796 6 098 7 547 349 431 537 365 – – 174 317 711 682Inventory 59 304 – – – 25 322 – 84 626 – – – 84 626Non-current assets held for sale 135 000 – – – 26 465 80 000 241 465 – – – 241 465Other assets 1 673 – – – – 27 499 29 172 – – 219 29 391Total assets 7 995 136 10 214 067 1 631 950 364 790 2 354 782 755 674 23 316 399 2 985 125 585 147 174 584 27 061 255Long-term borrowings – – – – – 9 440 412 9 440 412 – – 1 358 918 10 799 330Other financial liabilities – – – – – 293 841 293 841 – – – 293 841Deferred tax liabilities – – – – – 110 614 110 614 91 854 – – 202 468Trade and other payables 146 687 161 390 12 843 2 110 18 171 65 334 406 535 – – 15 953 422 488Lease liability 134 054 51 517 50 287 2 253 – 11 157 249 268 – – – 249 268Other liabilities – – – – 16 062 9 261 25 323 – – 40 25 363Total liabilities 280 741 212 907 63 130 4 363 34 233 9 930 619 10 525 993 91 854 – 1 374 911 11 992 758STATEMENT OF COMPREHENSIVE INCOMERental income 419 919 577 827 107 533 20 168 – 5 552 1 130 999 – – – 1 130 999Straight-line lease income adjustment 47 487 (5 941) 17 025 (2 150) – – 56 421 – – – 56 421Sale of inventory 7 528 – – – – – 7 528 – – – 7 528Property expenses (120 634) (235 550) (27 452) (5 985) – 3 793 (385 828) – – – (385 828)Cost of sales 1 422 – – – – – 1 422 – – – 1 422Net profit from property operations 355 722 336 336 97 106 12 033 – 9 345 810 542 – – – 810 542Other income 150 – 197 – – 8 200 8 547 7 567 45 220 – 61 334Operating expenses (15 821) (17 302) (3 987) (867) – (45 645) (83 622) – – – (83 622)Impairment losses (5) (5) (1 476) – – (263 771) (265 257) – (21) – (265 278)Other expenses – – (2) – (17 323) (7 689) (25 014) – (6 675) – (31 689)Operating profit/(loss) 340 046 319 029 91 838 11 166 (17 323) (299 560) 445 196 7 567 38 524 – 491 287Amortisation of intangible assets – – – – – (9 982) (9 982) – – – (9 982)Fair value adjustments (331 062) (39 375) (27 219) 16 609 50 922 (22 846) (352 971) – – – (352 971)Net income from associates 57 (5 441) – – – (173) (5 557) 193 962 – – 188 405Investment income 19 766 3 935 586 – – 10 679 34 966 – 14 998 – 49 964Finance costs (5 944) (2 402) (2 475) (108) – (412 259) (423 188) – – (14 483) (437 671)Profit/(loss) before tax 22 863 275 746 62 730 27 667 33 599 (734 141) (311 536) 201 529 53 522 (14 483) (70 968)Taxation – – – – – (10 595) (10 595) 44 576 – (40) 33 941Profit/(loss) for the period attributable to owners 22 863 275 746 62 730 27 667 33 599 (744 736) (322 131) 246 105 53 522 (14 523) (37 027)



R'000Retail

R'000Industrial

R'000Hotel

R'000


R'000Head office SA

R'000Total SA

R'000

MASEuropean

R'000Rest of Africa

R'000

Head office Global R'000

Total R'000



Straight-line lease debtor 553 808 239 034 116 352 14 149 – – 923 343 – – – 923 343Intangible assets and goodwill – – – – – 324 294 324 294 – – – 324 294Investments in associates and joint ventures 978 37 619 91 025 – 963 58 142 188 727 3 182 830 – – 3 371 557Other financial assets 352 526 22 394 6 913 – – 21 794 403 627 10 525 – – 414 152Loans to associates and joint ventures – – 69 – 136 486 281 317 417 872 – 806 366 – 1 224 238Trade and other receivables 43 240 75 980 13 180 1 230 72 071 19 987 225 688 – – 19 225 707Cash and cash equivalents 44 740 106 900 7 164 54 129 502 985 661 972 – – 66 375 728 347Inventory – – – – 93 078 – 93 078 – – – 93 078Non-current assets held for sale – – 108 204 – 67 777 763 176 744 – – – 176 744Other assets 2 673 – – – – 45 740 48 413 – – – 48 413Total assets 7 690 987 10 260 793 1 745 157 334 020 2 541 939 1 260 022 23 832 918 3 193 355 806 366 66 394 27 899 033Long-term borrowings – – – – – 9 038 478 9 038 478 – – 1 471 921 10 510 399Other financial liabilities – – 12 807 – – 166 765 179 572 – – 1 051 180 623Deferred tax liabilities – – – – – 46 996 46 996 138 371 – – 185 367Trade and other payables 101 119 151 932 25 723 1 091 55 412 26 418 361 695 – – 40 361 735Other liabilities – – – – 27 029 10 424 37 453 – – 408 37 861Total liabilities 101 119 151 932 38 530 1 091 82 441 9 289 081 9 664 194 138 371 – 1 473 420 11 275 985STATEMENT OF COMPREHENSIVE INCOMERental income 356 074 551 073 72 574 19 165 – 5 115 1 004 001 – – – 1 004 001Straight-line lease income adjustment 62 380 3 366 16 775 (1 202) – – 81 319 – – – 81 319 Sale of inventory 32 267 – (10 521) – – – 21 746 – – – 21 746 Property expenses (121 907) (214 682) (22 049) (6 061) – (647) (365 346) – – – (365 346)Cost of sales (29 517) – 8 396 – – – (21 121) – – – (21 121)Net profit from property operations 299 297 339 757 65 175 11 902 – 4 468 720 599 – – – 720 599 Other income – – – – – 2 816 2 816 12 848 21 221 2 638 39 523 Operating expenses (16 721) (16 082) (3 510) (288) – (46 907) (83 508) – – – (83 508)Impairment losses – – – – – (239) (239) – (370 282) – (370 521)Other expenses – – – – (16 213) (5 233) (21 446) – (11 828) – (33 274)Operating profit/(loss) 282 576 323 675 61 665 11 614 (16 213) (45 095) 618 222 12 848 (360 889) 2 638 272 819 Amortisation of intangible assets – – – – – (9 982) (9 982) – – – (9 982)Fair value adjustments (58 956) 74 344 (12 466) 6 110 77 930 (16 552) 70 410 – – 693 71 103 Net income from associates 24 (2 502) 3 463 – (795) (7 832) (7 642) 41 683 (16 586) – 17 455 Investment income 19 273 2 990 44 12 – 48 299 70 618 – 68 189 – 138 807 Finance costs – – – – – (417 705) (417 705) – – (17 871) (435 576)Profit/(loss) before tax 242 917 398 507 52 706 17 736 60 922 (448 867) 323 921 54 531 (309 286) (14 540) 54 626 Taxation - - - - - 1 831 1 831 (11 912) - (401) (10 482)Profit/(loss) for the period attributable to owners 242 917 398 507 52 706 17 736 60 922 (447 036) 325 752 42 619 (309 286) (14 941) 44 144

Restated unaudited condensed segmental analysis31 December 2018



R'000Retail

R'000Industrial

R'000Hotel

R'000


R'000Head office SA

R'000Total SA

R'000

MASEuropean

R'000Rest of Africa

R'000


Total R'000



Straight-line lease debtor 553 808 239 034 116 352 14 149 – – 923 343 – – – 923 343Intangible assets and goodwill – – – – – 324 294 324 294 – – – 324 294Investments in associates and joint ventures 978 37 619 91 025 – 963 58 142 188 727 3 182 830 – – 3 371 557Other financial assets 352 526 22 394 6 913 – – 21 794 403 627 10 525 – – 414 152Loans to associates and joint ventures – – 69 – 136 486 281 317 417 872 – 806 366 – 1 224 238Trade and other receivables 43 240 75 980 13 180 1 230 72 071 19 987 225 688 – – 19 225 707Cash and cash equivalents 44 740 106 900 7 164 54 129 502 985 661 972 – – 66 375 728 347Inventory – – – – 93 078 – 93 078 – – – 93 078Non-current assets held for sale – – 108 204 – 67 777 763 176 744 – – – 176 744Other assets 2 673 – – – – 45 740 48 413 – – – 48 413Total assets 7 690 987 10 260 793 1 745 157 334 020 2 541 939 1 260 022 23 832 918 3 193 355 806 366 66 394 27 899 033Long-term borrowings – – – – – 9 038 478 9 038 478 – – 1 471 921 10 510 399Other financial liabilities – – 12 807 – – 166 765 179 572 – – 1 051 180 623Deferred tax liabilities – – – – – 46 996 46 996 138 371 – – 185 367Trade and other payables 101 119 151 932 25 723 1 091 55 412 26 418 361 695 – – 40 361 735Other liabilities – – – – 27 029 10 424 37 453 – – 408 37 861Total liabilities 101 119 151 932 38 530 1 091 82 441 9 289 081 9 664 194 138 371 – 1 473 420 11 275 985STATEMENT OF COMPREHENSIVE INCOMERental income 356 074 551 073 72 574 19 165 – 5 115 1 004 001 – – – 1 004 001Straight-line lease income adjustment 62 380 3 366 16 775 (1 202) – – 81 319 – – – 81 319 Sale of inventory 32 267 – (10 521) – – – 21 746 – – – 21 746 Property expenses (121 907) (214 682) (22 049) (6 061) – (647) (365 346) – – – (365 346)Cost of sales (29 517) – 8 396 – – – (21 121) – – – (21 121)Net profit from property operations 299 297 339 757 65 175 11 902 – 4 468 720 599 – – – 720 599 Other income – – – – – 2 816 2 816 12 848 21 221 2 638 39 523 Operating expenses (16 721) (16 082) (3 510) (288) – (46 907) (83 508) – – – (83 508)Impairment losses – – – – – (239) (239) – (370 282) – (370 521)Other expenses – – – – (16 213) (5 233) (21 446) – (11 828) – (33 274)Operating profit/(loss) 282 576 323 675 61 665 11 614 (16 213) (45 095) 618 222 12 848 (360 889) 2 638 272 819 Amortisation of intangible assets – – – – – (9 982) (9 982) – – – (9 982)Fair value adjustments (58 956) 74 344 (12 466) 6 110 77 930 (16 552) 70 410 – – 693 71 103 Net income from associates 24 (2 502) 3 463 – (795) (7 832) (7 642) 41 683 (16 586) – 17 455 Investment income 19 273 2 990 44 12 – 48 299 70 618 – 68 189 – 138 807 Finance costs – – – – – (417 705) (417 705) – – (17 871) (435 576)Profit/(loss) before tax 242 917 398 507 52 706 17 736 60 922 (448 867) 323 921 54 531 (309 286) (14 540) 54 626 Taxation - - - - - 1 831 1 831 (11 912) - (401) (10 482)Profit/(loss) for the period attributable to owners 242 917 398 507 52 706 17 736 60 922 (447 036) 325 752 42 619 (309 286) (14 941) 44 144


Audited condensed segmental analysis30 June 2019


R'000Retail

R'000Industrial

R'000Hotel

R'000


R'000Head office SA

R'000Total SA

R'000

MASEuropean

R'000Rest of Africa

R'000


Total R'000

STATEMENT OF FINANCIAL POSITIONInvestment property 6 568 929 9 686 888 1 436 998 334 294 – 5 000 18 032 109 – – – 18 032 109 Waterfall developments – – – – 2 049 435 – 2 049 435 – – – 2 049 435

Developments under construction – – – – 791 276 – 791 276 – – – 791 276 Leasehold land – – – – 1 258 159 – 1 258 159 – – – 1 258 159

Straight-line lease debtor 670 618 232 022 123 927 12 580 – – 1 039 147 – – – 1 039 147 Intangible assets and goodwill – – – – – 252 441 252 441 – – – 252 441 Investments in associates and joint ventures 1 022 32 004 – – – 1 191 34 217 3 183 494 – – 3 217 711 Other financial assets 343 035 24 320 9 289 – – 33 237 409 881 9 484 – – 419 365 Loans to associates and joint ventures – – – – 111 620 242 540 354 160 – 639 444 – 993 604 Trade and other receivables 37 177 57 128 7 700 1 001 97 018 3 354 203 378 – – 72 203 450 Cash and cash equivalents 344 698 90 760 5 762 21 971 50 650 492 862 – – 180 624 673 486 Inventory – – – – 51 137 – 51 137 – – – 51 137 Non-current assets held for sale – – 77 000 – 19 018 763 96 781 – – – 96 781 Other assets 2 173 – – – – 19 562 21 735 – – – 21 735 Total assets 7 967 652 10 123 122 1 660 676 347 896 2 329 199 608 738 23 037 283 3 192 978 639 444 180 696 27 050 401 Long-term borrowings – – – – – 9 007 294 9 007 294 – – 1 455 451 10 462 745 Other financial liabilities – – – – – 297 551 297 551 – – – 297 551 Deferred tax liabilities – – – – – 100 019 100 019 138 520 – – 238 539 Trade and other payables 121 765 143 902 12 435 1 712 62 752 30 906 373 472 – 16 218 – 389 690 Non-current liabilities held directly associated with assets held for sale – – – – – 53 986 53 986 – – – 53 986 Other liabilities – – – – 10 925 7 978 18 903 – – 1 255 20 158 Total liabilities 121 765 143 902 12 435 1 712 73 677 9 497 734 9 851 225 138 520 16 218 1 456 706 11 462 669 STATEMENT OF COMPREHENSIVE INCOMERental income 739 065 1 114 314 156 860 38 213 – 9 096 2 057 548 – – – 2 057 548 Straight-line lease income adjustment 179 189 (3 645) 24 351 (2 771) – – 197 124 – – – 197 124 Sale of inventory 39 093 – (10 521) – – – 28 572 – – – 28 572 Property expenses (244 625) (448 831) (47 273) (11 762) – 3 348 (749 143) – – – (749 143)Cost of sales (39 943) – 8 396 – – – (31 547) – – – (31 547)Net profit from property operations 672 779 661 838 131 813 23 680 – 12 444 1 502 554 – – – 1 502 554 Other income 406 – 28 571 – – 3 898 32 875 21 164 33 313 2 180 89 532 Operating expenses (33 632) (32 869) (7 530) (764) – (80 690) (155 485) – – – (155 485)Impairment losses – – – – (29 975) (55 865) (85 840) – (419 308) – (505 148)Other expenses – (930) (86) – (26 589) (66 823) (94 428) – (75 710) – (170 138)Operating profit/(loss) 639 553 628 039 152 768 22 916 (56 564) (187 036) 1 199 676 21 164 (461 705) 2 180 761 315 Amortisation of intangible assets – – – – – (19 964) (19 964) – – – (19 964)Fair value adjustments (267 082) (86 608) (41 323) 21 816 (291 913) (137 979) (803 089) – – 1 354 (801 735)Net income from associates 69 (8 117) (759) – (1 758) (67 380) (77 945) 204 037 (1 322) – 124 770 Investment income 38 104 6 529 199 17 – 66 760 111 609 – 118 940 – 230 549 Finance costs – – – – – (820 681) (820 681) (1 003) – (33 781) (855 465)Profit/(loss) before tax 410 644 539 843 110 885 44 749 (350 235) (1 166 280) (410 394) 224 198 (344 087) (30 247) (560 530)Taxation – – – – – (26 111) (26 111) (14 287) – (1 660) (42 058)Profit/(loss) for the year attributable to owners 410 644 539 843 110 885 44 749 (350 235) (1 192 391) (436 505) 209 911 (344 087) (31 907) (602 588)



R'000Retail

R'000Industrial

R'000Hotel

R'000


R'000Head office SA

R'000Total SA

R'000

MASEuropean

R'000Rest of Africa

R'000


Total R'000

STATEMENT OF FINANCIAL POSITIONInvestment property 6 568 929 9 686 888 1 436 998 334 294 – 5 000 18 032 109 – – – 18 032 109 Waterfall developments – – – – 2 049 435 – 2 049 435 – – – 2 049 435

Developments under construction – – – – 791 276 – 791 276 – – – 791 276 Leasehold land – – – – 1 258 159 – 1 258 159 – – – 1 258 159

Straight-line lease debtor 670 618 232 022 123 927 12 580 – – 1 039 147 – – – 1 039 147 Intangible assets and goodwill – – – – – 252 441 252 441 – – – 252 441 Investments in associates and joint ventures 1 022 32 004 – – – 1 191 34 217 3 183 494 – – 3 217 711 Other financial assets 343 035 24 320 9 289 – – 33 237 409 881 9 484 – – 419 365 Loans to associates and joint ventures – – – – 111 620 242 540 354 160 – 639 444 – 993 604 Trade and other receivables 37 177 57 128 7 700 1 001 97 018 3 354 203 378 – – 72 203 450 Cash and cash equivalents 344 698 90 760 5 762 21 971 50 650 492 862 – – 180 624 673 486 Inventory – – – – 51 137 – 51 137 – – – 51 137 Non-current assets held for sale – – 77 000 – 19 018 763 96 781 – – – 96 781 Other assets 2 173 – – – – 19 562 21 735 – – – 21 735 Total assets 7 967 652 10 123 122 1 660 676 347 896 2 329 199 608 738 23 037 283 3 192 978 639 444 180 696 27 050 401 Long-term borrowings – – – – – 9 007 294 9 007 294 – – 1 455 451 10 462 745 Other financial liabilities – – – – – 297 551 297 551 – – – 297 551 Deferred tax liabilities – – – – – 100 019 100 019 138 520 – – 238 539 Trade and other payables 121 765 143 902 12 435 1 712 62 752 30 906 373 472 – 16 218 – 389 690 Non-current liabilities held directly associated with assets held for sale – – – – – 53 986 53 986 – – – 53 986 Other liabilities – – – – 10 925 7 978 18 903 – – 1 255 20 158 Total liabilities 121 765 143 902 12 435 1 712 73 677 9 497 734 9 851 225 138 520 16 218 1 456 706 11 462 669 STATEMENT OF COMPREHENSIVE INCOMERental income 739 065 1 114 314 156 860 38 213 – 9 096 2 057 548 – – – 2 057 548 Straight-line lease income adjustment 179 189 (3 645) 24 351 (2 771) – – 197 124 – – – 197 124 Sale of inventory 39 093 – (10 521) – – – 28 572 – – – 28 572 Property expenses (244 625) (448 831) (47 273) (11 762) – 3 348 (749 143) – – – (749 143)Cost of sales (39 943) – 8 396 – – – (31 547) – – – (31 547)Net profit from property operations 672 779 661 838 131 813 23 680 – 12 444 1 502 554 – – – 1 502 554 Other income 406 – 28 571 – – 3 898 32 875 21 164 33 313 2 180 89 532 Operating expenses (33 632) (32 869) (7 530) (764) – (80 690) (155 485) – – – (155 485)Impairment losses – – – – (29 975) (55 865) (85 840) – (419 308) – (505 148)Other expenses – (930) (86) – (26 589) (66 823) (94 428) – (75 710) – (170 138)Operating profit/(loss) 639 553 628 039 152 768 22 916 (56 564) (187 036) 1 199 676 21 164 (461 705) 2 180 761 315 Amortisation of intangible assets – – – – – (19 964) (19 964) – – – (19 964)Fair value adjustments (267 082) (86 608) (41 323) 21 816 (291 913) (137 979) (803 089) – – 1 354 (801 735)Net income from associates 69 (8 117) (759) – (1 758) (67 380) (77 945) 204 037 (1 322) – 124 770 Investment income 38 104 6 529 199 17 – 66 760 111 609 – 118 940 – 230 549 Finance costs – – – – – (820 681) (820 681) (1 003) – (33 781) (855 465)Profit/(loss) before tax 410 644 539 843 110 885 44 749 (350 235) (1 166 280) (410 394) 224 198 (344 087) (30 247) (560 530)Taxation – – – – – (26 111) (26 111) (14 287) – (1 660) (42 058)Profit/(loss) for the year attributable to owners 410 644 539 843 110 885 44 749 (350 235) (1 192 391) (436 505) 209 911 (344 087) (31 907) (602 588)


The reconciliation of profit to distributable earnings is a non-IFRS financial measure and does not form part of the condensed financial statements for the periods and year presented.


2019R'000

RestatedUnaudited

31 December2018

R'000

Audited30 June

2019R'000

(Loss)/profit for the period/year attributable to Attacq's shareholders (37 027) 44 144 (602 588)Loss on disposal of associate 83 – –Profit on disposal of other investments – (2 180) –Loss/(profit) on disposal of investment property 2 – (11 095)Loss/(profit) on disposal of investment in associate – 2 597 (14 547)Net impairment of associates, other investments and loans 251 710 370 508 550 967Impairment of Wi-Fi rights intangible asset – – 61 871Fair value adjustments 352 971 (71 103) 801 735Net income from associates and joint ventures (188 405) (17 455) (124 770)Straight-line lease income adjustments (56 421) (81 319) (197 124)Net non-cash interest from associates (10 014) (65 041) (114 193)Net cash interest received from associates 3 450 31 405 89 514Depreciation and amortisation 18 118 18 631 37 026Unrealised foreign currency translation effect (25 628) (19 867) (31 667)Dividends received from associates 121 177 99 600 191 045Edcon restructure (7 525) – (4 129)Interest on lease liability 11 359 – –Rental paid (23 155) – –Other non-cash movements (568) – –Deferred taxation (36 071) 6 457 32 061Distributable earnings for the period/year 374 056 316 377 664 106Number of shares in issue* 703 906 577 703 395 224 703 495 224Weighted average number of shares in issue* 703 669 602 703 178 702 703 311 279DEPSBasic (cents) 53.2 45.0 94.4Dividends (R’000) 316 758 284 875 573 308Interim (R’000) 316 758 284 875 284 875Final (R’000) – – 288 433Dividend per share (cents) 45.0 40.5 81.5Interim (cents) 45.0 40.5 40.5Final (cents) – – 41.0

* Adjusted for 46 427 553 treasury shares

ANNEXURE Reconciliation of profit for the period/year to distributable earnings


Independent non-executive directorsP Tredoux (Chairman)HR El Haimer (Lead independent)IN MkhariBT NagleS Shaw-TaylorJHP van der Merwe

Executive directorsM Hamman (CEO)R Nana (CFO)JR van Niekerk (COO)

Company secretaryP de Villiers (resigned 29 February 2020)A Matwa (appointed 1 March 2020)

Registered officeATT House, 2nd FloorMaxwell Office Park37 Magwa CrescentWaterfall City2090

Postal addressPostNet suite 016Private Bag X81Halfway House1685

Transfer secretariesComputershare Investor Services (Pty) LtdRosebank Towers, 15 Biermann Avenue, Rosebank, 2196(PO Box 61051, Marshalltown, 2107)

SponsorJava Capital

Company contact detailsHead of Investor RelationsBI BothaLandline number: +27 12 010 3457

ATT House, 2nd Floor, Maxwell Offi ce Park, 37 Magwa Crescent, Waterfall City, 2090+27 10 549 1050 | [email protected]

Documents

CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS attacq interim results for the six months ended 31 december 2019 1 / 1 attacq | interim results presentation 2 performance