Slide 1: Interim Results for the period ended 30 September 2017
INTERIM RESULTS for the period ended 30 September 2017 A LEADING PORTFOLIO
Slide 2: Contents
CONTENTS Snapshot 2 Highlights 4 Financial results 8 Capital structure 13 Key statistics 15 Fourways Mall and other 18 developments Accelerate Europe 22 Way forward 24 Annexure A: Property portfolio 26 summary Annexure B: The Fourways Mall 30 development equalisation Annexure C: Additional informati
Slide 3: Fourways Mall development
• • • • • - • • - • - - - Fourways Mall development
Slide 4: Citibank Fourways Mall development
Citibank Fourways Mall development Fourways Mall
Slide 5: Snapshot
A / ACCELERATE SNAPSHOT Retail — targeted 70% (currently 63,0%) Office — targeted 15% (currently 30,8%) Industrial - targeted 15% (currently 6,2%) Consumers visiting malls less frequently but spending more per visit (SAPOA) Shift in mall culture - “shoppertainment” Competitive advantage for APF: - F
Slide 6: Revamped Citibank (artist impression)
Revamped Citibank (artist impression)
Slide 7: Highlights
A / ACCELERATE HIGHLIGHTS Portside letting Citibank letting Eden Meander development Fourways Mall development Vacancy reduced from 74,1% in Jun 2016 to 21,0% in Sept 2017 Average gross rentals of R179/m? for office and R227/m* for retail Average escalations of 8,4% with a WALE of 2,8 years Acquired
Slide 8: Fund as at September 2017
FUND AS AT 30 SEPTEMBER 2017 Property portfolio Asset value: R11,8b6n Fourways Precinct: 175 563 m* Strateci d Charles Crescent - Kramerville: 47 692 m* rategic nodes Foreshore - Cape Town: 51057 m* Somerset West - Cape Town: 9 281 m? 637 577 m? 91,7% (excl. structural vacancies and Portside) Occupa
Slide 9: Balance sheet optimisation
BALANCE SHEET OPTIMISATION LTV movement Targeted LTV * 35% to 40% 50% ° 42.8% 40% 36.6% 30.2% 29,2% 30% 28.2% ae 20% BEE transaction * RL2 billion sale 10% 0% Current LTV BEE Recycling of | Foreshore Bulk transaction assets development Recycling of assets * Ri billion Foreshore development * Sale of
Slide 10: Portside
Portside
Slide 11: Income and distributions
INCOME AND DISTRIBUTIONS 30 September 2017 30 September 2016 Consolidated statement of comprehensive income 000) (R’000} Revenue, excl. straight-line rental revenue adjustment 606 305 498 042 Straightline rental revenue adjustment 26 921 16 027 Revenue 633 226 514 069 Property expenses (169 024) (38
Slide 12: Distribution build-up
Li rare DISTRIBUTION BUILD-UP igeva Actual 30 September 2016 (R’000) (R’000) Distribution analysis Distributable earnings 266 037 232 599 Shares qualifying for distribution Number of shares at year-end 986 372 706 859 652 330 Less: shares repurchased Accelerate (10 828 803) - Less: bulk ceded shares
Slide 13: Like-for-like net property income 2016 - 2017
Lp LIKE-FOR-LIKE NET PROPERTY INCOME 2016 - 2017 Gross property revenue (excl. straightining) Office Industrial Retail European - Single tenant Property expenses Office Industrial Retail European - Single tenant Net property income (excl. straighttining) Office Industrial Retail European - Single te
Slide 14: Financial position
FINANCIAL POSITION 30 September 2017 31 March 2017 High level overview of performance Consolidated statement of financial position (R'000) (R’000} * Investment property increase: Investment property 12080 925 11860 689 . - OBI properties Investment property held for sale 100 450 - = Capex Other asse
Slide 15: Cedar Square
Cedar Square
Slide 16: Long-term debt
LONG-TERM DEBT Long-term debt funding maturity profile (Rm)* 800 700 600 500 BERS 2 £0 2o27 2 3.5 2034 =RMB Sep-18 Dec 18. Apr-18 Jun-19 minvestec Sep 19 D a Apr-20 ab B oO Jan-20 m@STD bank Interest rate swap maturity buckets (Rm) 1800 1600 1400 1200 1000 800 600 400 200 io} S00 Feb-18 100 Mar 18 1
Slide 17: Key statistics
KEY STATISTICS Fourways Mall development
Slide 18: Lease expiry profile, escalations and debtors-ageing
LEASE EXPIRY PROFILE, ESCALATIONS AND DEBTORS-AGEING Lease expiry profile by revenue* 20% 15% 10% 5% | O% _iI Sept 18 Sept 19 Sept 20 Sept 21 >Sept 21 Mindusirial Office Retail Offshore Letting Renewals/ Expired New Rental Expired new lets rental rental reversion Escalations Sectoral m m* R/m? m % %
Slide 19: Vacancies as at September 2017
Vacancies as at 30 September 2017 (net of structural vacancies* and Portside*) (m*) Sectoral type 30 September 2017 31 March 2017 Industrial 0,0% 0,0% Office 17,48% 11,22% Retail 7AI% v 7.91% European retail 0,0% 0,0% Total portfolio 8,38% 6.91% Total vacancies as at 30 September 2017 (m*) Sectoral
Slide 20: Witkoppen flyover into Fourways Mall
Witkoppen flyover into Fourways Mall
Slide 21: The Fourways Mall development
L pessesnen THE FOURWAYS MALL DEVELOPMENT Construction progress Leroy Merlin (17 335 m*) Entertainment differentiation * Expected completion end 2018 * Please refer to Annexure C ( illustrative calculation of the Fourways equalisation) * New offshore entrant * DIY, building, decorating and gardening
Slide 22: Fourways View (artist impression)
• • • • Fourways View (artist impression) • • • Fourways View (artist impression)
Slide 23: Foreshore development (artist impression)
• - • - • - - • - - - Foreshore development (artist impression)
Slide 24: OBI Vienna
ct Cy ; aE) Set . - \ OBI Vienna
Slide 25: OBI portfolio performance to date
OBI portfolio performance to date: * Properties - 9 OBI retail outlets (Six in Austria and three in Slovakia) acquired Dec 2016 - Net lease - Purchase price €82m - Externally valued at €89,2m (30 Sept 2017) - WALE: 12,1 years * Performance to date - Net yield back to SA (1 Apr 2017 to 30 Sept 2017)
Slide 26: Fourways Mall development
Fourways Mall development
Slide 27: Potential Accelerate three-year horizon asset management and deal pipeline
POTENTIAL ACCELERATE THREE-YEAR HORIZON ASSET MANAGEMENT AND DEAL PIPELINE OPPORTUNITIES Progress on . Initiation Advanced execution Buzz bulk:* BEE deal:* Description - Sale/JV on bulk for Sale of non-core assets residential development approximately R1,2bn Strategic sales Eden Meander Fourways Vie
Slide 28: Cedar Isle Auto
° £ S <= wy Q . © mo) o oO
Slide 29: Sector and geographic summary
SECTOR AND GEOGRAPHIC SUMMARY Sector profile by revenue 5.8% 5.8% 29,1% S9,5% Geographic profile by revenue oy 2% 07% 22.6% 68.4% 16% 10% m Industrial m Office Retail m European retail m Gauteng KwaZulu-Natal Limpopo = Western Cape Eastern Cape B Mpumalanga mEurope Sector profile by GLA 13,1% 10,4%
Slide 30: Tenant profile
Lila TENANT PROFILE Tenant profile by revenue Tenant profile by GLA 18,5% wA-crade ™ B-grade 17.0% wA-grade mB-grade = C-grade mC-grade 12.3% 162% 66.3% 0.7% Single vs multi-tenanted by GLA A: Large national tenants, large listed tenants and major franchises, including, Absa Bank, Capitec Bank, Dis-
Slide 31: APF: Portfolio summary
APF: PORTFOLIO SUMMARY Description Total property p io Number of properties Asset value (R'000) Value per sector (%) Average property value (R'000) Total GLA (m*) GLA as percentage of portfolio (%) Retail Office Industrial European retail 70 31 e3 7 3g 11922 271 6 562 886 3 285 661 644 988 1428 736
Slide 32: Fourways Mall development (artist impression)
Fourways Mall development (artist impression)
Slide 33: Annexure B: Illustrative Fourways development equalisation calculation
A (OTT y eites ANNEXURE B: ILLUSTRATIVE FOURWAYS DEVELOPMENT EQUALISATION CALCULATION Why is an equalisation required The equalisation price formula Accelerate currently owns the existing properties forming part of the redevelopment (existing GLA before development) namely, Fourways Mall, Fourways G
Slide 34: Annexure B: Illustrative Fourways development equalisation calculation
Lila = : = ANNEXURE B: ILLUSTRATIVE FOURWAYS DEVELOPMENT EQUALISATION CALCULATION Please note that the calculation below is for illustrative purposes only and is not based on finalised figures Description Rand Development guarantee 12-month forward (existing GLA) 215 703 657 Estimated forward net in
Slide 35: Fourways Mall development
Fourways Mall development
Slide 36: Witkoppen flyover into Fourways Mall
• • • • • • • • • • • Witkoppen flyover into Fourways Mall
Slide 37: Selected developments in the Fourways area
Lila 7 Soares SELECTED DEVELOPMENTS IN THE FOURWAYS AREA Developments Riversands Commercial Park: Both residential and commercial developments of 240ha are well underway with a Makro being built, as well as a number of smaller residential developrnents Lanseria: Development of Lanseria Airport City
Slide 38: Fourways node key statistics — Urban Studies
FOURWAYS NODE KEY STATISTICS — URBAN STUDIES | * Key findings from independent Urban Studies report * The Fourways Node is experiencing strong development growth * 180 000 people 7S 000 households Growing at >3% pa * LSM profile: LSM1-4 18% LSM5S 6% LSM 6-7 8% LSM 8-9 15% LSM 10+ 53% Monthly disposa
Slide 39: Key findings from independent report
cs SC by Sine (rw) Key findings from independent report: * Extended catchment area from previous analysis (2014) Catchment * Includes: Steyn City, Sunninghill and Bryanston * 332 000 people * 82 991 households * Growing at >3% pa * LSM profile: LSM 1-5 8.1% LSM6 18% LSM 7-8 7.0% LSM9 39.4% LSM 10+ 4
Slide 40: Portside
Portside
Slide 41: Revamped Citibank (artist impression)
• - - • - - Revamped Citibank (artist impression) • -
Slide 42: Portside
PORTSIDE * Leasing update: 3 056m’ is under discussion/negotiation at an average gross rental of R185/m’: - Qth floor - 1 000m? - 16th floor- 1556m* - 18th floor- SOOm* * Current average rentals of R179/m* gross on office space and R227/m’ for retail space Portside + WALE: - 2.8 years at 30 Sept 201
Slide 43: Case studies: Wilrogate and Beacon Isle
CASE STUDIES: WILROGATE AND BEACON ISLE Wilrogate Scope: Upgrade of look and feel including painting, new signage, re-tar of parking area, re-tiling of entire centre, renovation of toilet and landscaping Rationale: Tenant driven defensive spend Securing new long-term lease with anchor tenant (Checke
Slide 44: Thank you
THANK YOU KEY DATES Declaration date Last day to trade cum distribution Shares commence trading ex distribution Record date Payment date INVESTOR RELATIONS Instinctif Partners The Firs, 302 3rd Floor, Cnr Craddock and Biermann Roads, Rosebank, Johannesburg, 2196 Monday, 20 November 2017 Tuesday, 5 D
Slide 45: Notes
NOTES
Slide 46: Notes
NOTES
Slide 47: GREYMATTER & FINCH # 11195
GREYMATTER & FINCH # 11195
Slide 48: www.acceleratepf.co.za
ACCELERATE PROPERTY FUND www.acceleratepf.co.za