Msci Inc. · NYSE:MSCI
Msci — Investor Presentation (October 2025)
33 slides from Msci's investor presentation, Oct 29, 2025
Slide 1: MSCI South Africa Bi-Annual Property Index
MSCI South Africa Bi-Annual Property Index June 2025 Presented on 29th October 2025 © 2025 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document.
Slide 2: Introduction
Introduction MSCI June Index, MSCI →Direct Property investment weighting by value South Africa →No Gearing 1% Bi-Annual →Total Value = R394Billion 11% 5% Universe →Number of properties = 1639 19% 61% →Number of Funds = 24 →Coverage estimated at 63% Retail Office Industrial Residential Hotel Informat
Slide 3: MSCI Real Estate South African universe contributors
MSCI Real Estate South African universe contributors Unlevered, directly held real estate 4 0 7 B http://www.hyprop.co.za/images/hyprop-investments-limited-logo2.gif N Information Classification: GENERAL 3
Slide 4: Total Return steadily improving
All Property Annualised ungeared, direct property Total Return Total Return 20.0 steadily 15.0 improving 11.8 10.0 3.2 5.0 8.4 Total Return 12 0.0 10.3 10 8.2 7.6 8 -5.0 6 4 -10.0 2 -15.0 0 Jun 2009 Jun 2010 Jun 2011 Jun 2014 Jun 2016 Jun 2017 Jun 2019 Jun 2012 Jun 2013 Jun 2015 Jun 2018 Jun 2020 Ju
Slide 5: Capital expenditure dropping off a little in the last 6 months
CRE Investment Capital Expenditure Capital 300.0 2.5 expenditure 250.0 dropping off a 2.0 little in the last 200.0 1.5 6 months m2 150.0 % 1.0 100.0 0.5 50.0 0.0 0.0 Improvement Expenditure per m² Improvement Expenditure % Average Base Net CV Source: MSCI Information Classification: GENERAL 5
Slide 6: Valuation growth underpinned by income with a conservative slant on yield movement
All Property Capital Growth Decomposition Valuation 15.0 growth underpinned 10.0 by income with a conservative 5.0 slant on the yield 0.0 movement ( 5.0) → Income Impact: The effect that achieved income growth has on the valuation growth ( 10.0) → Yield Impact: The effect the 2010 2011 2012 2013 201
Slide 7: Cap rates have shown small movements but tended back to long-term average
Cap rates have shown small movements but have tended back to the long-term average in 2025. Market income assumptions have slowed to align with inflation Cap Rates Assumed Market Income Growth, % 9.5 15 7.0 6.0 9.0 10 YonY Change BPS 5.0 Cap Rate % 8.5 5 4.4 8.2 4.0 8.0 0 3.0 7.5 -5 2.0 7.0 -10 1.0
Slide 8: Industrial, followed by retail, delivered the highest returns over the last 10 years
Sector Industrial, followed by the retail sector, have delivered the highest returns over the last 10 years – 2025 improving across all sectors Retail Office Industrial Residential 16.0 12.0 16.0 12.0 9.9 13.9 10.2 13.3 9.7 14.0 10.0 14.0 10.0 12.1 7.7 12.0 10.6 8.0 12.0 10.6 10.7 6.2 8.0 6.9 10.0 8
Slide 9: Retail Sector Analysis
Sector Analysis Retail To June 2025 11
Slide 10: Most operating metrics better than the 10-year average – except for vacancy
10.0 0.0 6.0 -4.0 -2.0 2.0 4.0 8.0 Jun 2009 Source: MSCI Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Growth, % Jun 2019 Retail Sector Analysis Jun 2020 Jun 2021 Jun 2022 Jun 2023 Retail: Base Rental Value Jun 2024 Jun 2025 5.3 5.0 1.0 3.0 7.0 0.0 6.0 2.0 4.0 Jun
Slide 11: Tenant sustainability: sales should grow faster than rents
Tenant sustainability: sales should grow faster than rents Retail: Gross Rent and Sales Growth, % Retail: Gross Rent/Sales Ratio 25.0% 10.0 20.0% 9.5 15.0% 9.0 10.0% 4.7% 8.5 5.0% 8.0 0.0% 3.9% 7.5 -5.0% 7.0 6.8 -10.0% 6.5 6.7 -15.0% 6.0 Jun 2019 Jun 2016 Jun 2013 Jun 2015 Jun 2014 Jun 2017 Jun 2018
Slide 12: Cost of occupation growing faster than inflation
Retail Sector Analysis Cost of occupation growing faster than inflation Retail: Gross Income Receivable Retail: Cost of Occupation 350.0 30% 100.0 25% 90.0 19.1 22.9 300.0 20% 80.0 Rand per m2, per month Year on Year Growth % 250.0 13.4 70.0 12.5 15% 11% 200.0 60.0 10% 50.0 150.0 5% 40.0 0% 67.5 100
Slide 13: Office Sector Analysis
Sector Analysis Office To June 2025 17
Slide 14: Positive signs in operating metrics but not out the woods yet
-6.0 10.0 0.0 -8.0 -4.0 -2.0 6.0 12.0 2.0 4.0 8.0 Jun 2009 Source: MSCI Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Growth, % Jun 2019 Jun 2020 Office Sector Analysis Jun 2021 Jun 2022 Jun 2023 Office: Base Rental Value Jun 2024 Jun 2025 -0.5 8.0 10.0 16.0 0.0 20
Slide 15: Cost of occupation growing but very slowly
Cost of occupation growing but very slowly Office: Gross Income Receivable Office: Cost of Occupation 250.0 40% 120.0 35% 30% 100.0 200.0 Rand per m2, per month Year on Year Growth % 15.3 18.6 25% 20% 80.0 150.0 18.3 15% 24.7 60.0 10% 100.0 5% 1% 40.0 0% 66.4 50.0 -5% 56.7 20.0 -10% 0.0 -15% 0.0 Jun
Slide 16: Prime Offices maintained consistent performance gap
Prime Offices maintained consistent performance gap Total Return by Office Grade Source: MSCI Information Classification: GENERAL
Slide 17: Gauteng saw negative capital growth in offices since 2018
Gauteng saw negative capital growth in offices since 2018 Office: Capital Growth by Region Source: MSCI Information Classification: GENERAL
Slide 18: Wide range of returns on nodal level, most locations improved vs 3yr
Wide range of returns on nodal level, most locations improved vs 3yr Office: Total Return 1YR vs 3YR annualises Source: MSCI Information Classification: GENERAL
Slide 19: Office transaction volumes
Office Sector Analysis Office transaction volumes increased in Q4 2023 to Q4 2024 and then again in Q3 2025 Source: MSCI Information Classification: GENERAL 25
Slide 20: Industrial Sector Analysis
Sector Analysis Industrial 26
Slide 21: Operating metrics all better than the 10YR average in 2025
10.0 16.0 0.0 -4.0 -2.0 6.0 12.0 14.0 2.0 4.0 8.0 Jun 2009 Source: MSCI Jun 2010 Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 Jun 2019 Jun 2020 Value Growth, % Jun 2021 Jun 2022 Industrial: Base Rental Industrial Sector Analysis Jun 2023 Jun 2024 Jun 2025 5.9 5.0 3.0 0.0 1
Slide 22: Cost of occupation growth is inline with inflation
Industrial Sector Analysis Cost of occupation growth is inline with inflation Industrial: Gross Income Receivable Industrial: Cost of Occupation 120.0 12% 100.0 10% 90.0 16.5 21.5 100.0 8% 80.0 7.8 Rand per m2, per month Year on Year Growth % 9.7 80.0 6% 70.0 4% 60.0 4% 60.0 50.0 2% 40.0 40.0 0% 75.
Slide 23: Residential Sector Analytics
Sector Analytics Residential To June 2025 31
Slide 24: Operating metrics improving compared to the long-term average
Residential Sector Analysis Operating metrics improving to when compared to the long-term average Resi: Base Rental Value Office: Vacancy by Unit, Resi: Net Operating Resi: Gross Cost to Income Growth, % % Income Growth, % Ratio, % 25.0 7 25.0 60.0 20.0 16.7 6 6.2 20.0 50.0 49.2 15.0 15.0 5 10.0 40.
Slide 25: Cost of occupation growing faster than inflation but higher proportions going to landlord
Residential Sector Analysis Cost of occupation growing faster than inflation but higher proportions going to the landlord Residential: Gross Income Receivable Residential: Cost of Occupation 160.0 25% 120.0 20% 140.0 100.0 15% 12.5 17.3 120.0 2.6 Rand per m2, per month Year on Year Growth % 10% 80.0
Slide 26: Asset Selection
Sector Analytics Asset Selection To June 2025 36
Slide 27: Asset selection has been main driver of returns across markets
Asset Selection Asset selection has been main driver of returns across markets– even more so in South Africa → Compared to other global SELECTION SHARE OF TRACKING ERROR markets, South Africa’s sector levels returns were 100.0% less divergent 90.0% → While other countries’ 80.0% Selection Share of T
Slide 28: South Africa: 47% of Offices had positive capital growth in 2025H1
South Africa: 47% of Offices had positive capital growth in 2025H1 RANGE OF BI-ANNUAL CAPITAL GROWTH, 2025H1 59% 47% 65% 52% Source: MSCI Information Classification: GENERAL
Slide 29: Total Return spread by property type
Asset Selection Total Return spread by property type TOTAL RETURN SPREAD BETWEEN 25TH AND 75TH PERCENTILES, 12 MONTHS TO JUNE 2025 Source: MSCI Information Classification: GENERAL
Slide 30: Summary
Summary → South African → Capital → Each sector → These returns → Asset section direct Growth was saw an were remains the property, up 1,1% for improved total supported by most important ungeared the 6 months return solid criteria driving total returns to June 2025 underpinned improvements returns i
Slide 31: Thank you
Thank you 4 Information Classification: GENERAL 1
Slide 32: About MSCI
About MSCI MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and retu
Slide 33: Notice and Disclaimer
Notice and Disclaimer This document and all of the information contained in it, including without limitation all text, data, graphs, charts (collectively, the “Information”) is the property of MSCI Inc. or its subsidiaries (collectively, “MSCI”), or MSCI’s licensors, direct or indirect suppliers or