Summarised Consolidated Results for the Year Ended 30 June 2018

Summarised consolidated results for the year ended 30 June 2018

30 years of property investment excellence STRATEGIC & OPERATIONAL OVERVIEW

2 Strategy & highlights

Strategy ▪ Invested in South-Africa, sub-Saharan Africa and South-Eastern Europe ▪ Dominant quality shopping centres in major metropolitan areas ▪ Ownership in 21 shopping centres across 9 countries Highlights ▪ Acquired 3 major shopping centres – EUR 439 million in EU countries (via Hystead) ▪ Successfully completed R276 million of developments in SA ▪ Equity raise of R779 million - issuing 7,5 million new shares ▪ Issued two new long-term corporate bonds - total value R800 million ▪ Repaid debt of R1,95 billion ▪ Sold non-core asset of R230 million ▪ Conservative gearing levels

3 Financial highlights

30 Jun 2018 30 Jun 2017 Change (%)

Distributable earnings (Rbn) 1,9 1,7 10,5

Distribution 756,5 cps 695,1 cps 8,8

Total investments (Rbn) 37,3 35,5 5,1

Loan-to-value (%) 28,1 28,9 (2,8)

NAV (R per share) 102,98 99,78 3,2

Cost to income ratio (SA)

- Gross (%) 33,0 33,3 (0,9)

- Net (%) 15,8 15,7 0,6

4 Distribution growth

Cents per share 8,8% 800 12,1% 757 14,2% 695 700 15,0% 620 600 543

500 14,9% 16,6% 8,0% 8,3% 9,3% 13,4% 13,7% 16,3% 376 380 400 347 348 322 298 300 263 280

200

100

0 2015 2016 2017 2018 1st Half 2nd Half Total % growth 5 OPERATING PERFORMANCE

CapeGate (Brackenfell, Cape Town, Western Cape)

6 South African property locations

Gauteng region Super regional mall Canal Walk (80%)

Large regional malls CapeGate

H Y D E P A R K Clearwater C O R N E R Rosebank Mall Somerset Mall The Glen (75,15%) Woodlands

Western Cape region Regional mall Hyde Park Corner

Value/ lifestyle centre Atterbury Value Mart

7 Performance & market conditions South Africa

Operating in a challenging trading and consumer environment

Distributable earnings growth of 4%

- With second half growth of 6%

CapeGate and Somerset Mall – best performers 8,7% CapeGate (Brackenfell)

Vacancies reduced

Retaining good contractual escalations

Rental arrears well within market norm

Completed projects – positive impact on the centres Somerset Mall (Somerset West)

8 Leasing activity 30 June 2018

Contractual % of total Rentable area Rental growth Contractual lease value Leasing portfolio (m²) (%) escalation (%) (Rm) Retail 17,2 114 272 1,5 7,7 1 836 Offices 32,5 19 175 (6,7) 7,6 104 Total 18,5 133 447 1,0 7,7 1 940

30 Jun 2018 30 Jun 2017 Change EDCON Group (m2) (m2) (m2) Area occupied 67 300 70 102 (2 802)

Non-renewals in 2019 1 38093% m2 Under review to find replacement tenants 8 600 m2

Further reduction of 15%

9 Lease expiry profile

2018 / 2019 2019 / 2020 Expiring area % Rentable area Expiring area % Rentable area Retail (m²) of centre (m²) of centre Canal Walk 18 277 12 23 118 16 Somerset Mall 7 848 11 9 880 14 CapeGate 11 986 19 30 435 48 The Glen 11 547 14 14 952 19 Atterbury Value Centre 11 119 23 6 188 13 Woodlands Boulevard 7 111 10 11 034 14 Rosebank Mall 13 126 20 15 386 23 Hyde Park Corner 6 650 24 8 745 31 Clearwater 3 635 4 32 950 38 Retail 91 299 14 152 688 23 Offices 15 371 26 7 671 13 Total 106 670 15 160 359 22

10 Vacancies

Vacancies 30 Jun 2018 30 Jun 2017 30 Jun 2016

Retail (%) 1,6 1,9 0,8

Offices (%) 5,5 7,9 4,5

Total (%) 1,9 2,4 1,1

Vacancies Rentable area (m²) Change (m²)

Retail 10 713 (2 132)

Offices 3 255 (1 459)

13 968 (3 591)

11 Comparison to IPD Trading Density Index March 2018

Trading density growth Rent to turnover ratio Hyprop IPD Hyprop IPD Super regional 0,6% 0,0% 9,9% 11,0% Canal Walk Regional Clearwater, Rosebank 1,4% 0,5% 8,5% 8,8% Mall, Somerset Mall, CapeGate, Woodlands, Hyde Park Corner Small regional 1,0% 0,8% 9,0% 8,1% Atterbury Value Mart Community - (1,3%) - 5,4%

Neighbourhood - (0,6%) - 5,6%

Trading density growth Rent to turnover ratio Hyprop Jun 2018 Jun 2017 Jun 2018 Jun 2017 Total 0,5% 1,4% 9,1% 8,6%

12 Trading performance

Trading % of density total % of Primary category growth turnover area Department stores: Clicks, Dis-Chem, Edgars, Game, Woolworths 2,6 28,1 25,8 Apparel (2,9) 18,2 20,7 Food/supermarket 0,6 11,8 10,9 Electronic/photography/music/mobile 2,8 7,5 4,3 Food service 6,1 6,4 5,9 Sporting/outdoor goods & wear (1,4) 5,5 5,8 Home furnishings (0,8) 5,1 7,6 Speciality/toys 0,0 4,1 5,0 Jewellery 1,5 2,7 0,9 Health & beauty 0,4 2,5 1,6 Shoes (0,5) 2,1 2,3 Books/cards/stationery 1,1 2,0 2,0 Eyewear 10,7 1,0 0,6 Entertainment/movies 4,8 1,0 5,0

Note: IPD/MSCI allocations 13 DEVELOPMENTS

Rosebank Mall, Johannesburg, Gauteng

14 Developments

Hyprop Shopping centre Project share (Rm) Completion date

Rosebank Mall Additional 4 300m2 rentable area 127,0 April 2018 Food court enclosure and The Glen 90,9 April 2018 additional retail Canal Walk Additional retail in La Piazza area 41,6 November 2017

Woodlands Nu Metro refurbishment 16,0 December 2017

TOTAL 275,5

Smaller ▪ Refurbishment of the Hyde Park Corner offices (R14 million) projects ▪ Façade replacement of the Rosebank Mall offices (R10 million) completed ▪ Re-tenanting of the Stuttafords stores

Planned ▪ Upgrade of food courts at Woodlands Boulevard and Canal Walk

15 Hyprop sustainability

Completed solar PV project at Clearwater Mall

Various water saving initiatives in the Western Cape (use of borehole, capturing run off water, treatment of effluent grey water)

Use of grey and borehole water at The Glen

Installation of waterless urinals and aerators in the public bathrooms

Savings for the year

Electricity 3%

Water 19%

Recycle 80% of waste 1% improvement

16 INVESTMENT IN SUB-SAHARAN AFRICA (excluding SA)

Ikeja City Mall, Lagos, Nigeria

17 Sub-Saharan Africa property locations

Hyprop ownership Accra, Ghana ▪ West Hills Mall 16,8% ▪ Accra Mall 17,6% ▪ Achimota Retail Centre 28,1% Nigeria Ghana Kumasi, Ghana ▪ Kumasi City Mall 28,1% Lagos, Nigeria ▪ Ikeja City Mall 75,0% Zambia Lusaka, Zambia ▪ Manda Hill Shopping Centre 68,8%

18 Performance and market conditions Sub-Saharan Africa

Economic prospects in Ghana continue to improve, while Zambia and Nigeria are stable

AttAfrica and Manda Hill ▪ Financial performance impacted by vacancies and tenant portfolio replacements during the year

▪ Trading conditions and rent collection stable over recent Ikeja City Mall months ▪ Impacted by re-tenanting of shops at the beginning of the financial year Manda Hill ▪ Improved performance in 2nd half with further letting since year-end ▪ Game will open in November 2018, which will strengthen Achimota and West Hills the tenant mix ▪ Burger King opened successfully Accra Mall ▪ Since year-end further progress with re-letting Retain focus on further operational improvement 19 Income producing properties Investment in Sub-Saharan Africa (excl. SA)

Vacancy % Vacancy % Rentable rentable area rentable area Centre City & country area m² 30 Jun 2018 30 Jun 2017

Ikeja City Mall Lagos, Nigeria 22 223 3,1 -

Manda Hill Lusaka, Zambia 42 002 4,1 5,4

Accra Mall Accra, Ghana 21 311 6,8 -

West Hills Mall Accra, Ghana 28 272 10,4 5,3

Achimota Retail Centre Accra, Ghana 15 534 1,9 6,1

Kumasi City Mall Kumasi, Ghana 18 604 13,0 26,5

Average vacancies 147 946 6,4 6,5

20 INVESTMENT IN SOUTH- EASTERN EUROPE

Delta City (Podgorica, Montenegro)

West Hills Mall, Accra, Ghana 21 Hystead property locations

Macedonia, Skopje GLA (m²) ▪ Skopje City Mall 36 241

Serbia, Belgrade ▪ Delta City 29 850

Croatia Montenegro, Podgorica ▪ Delta City 23 718 Serbia Bulgaria, Sofia Bulgaria ▪ The Mall 51 211 Montenegro Zagreb, Croatia Macedonia ▪ City Center one - East 47 191

Zagreb, Croatia ▪ City Center one - West 42 373

22 Hystead at a glance

A UK company, modelled on Hyprop

Six high quality dominant shopping centres in capital cities of five countries – scale, credibility, bargaining power

Hyprop and PDI strategic shareholders – vast retail experience

Strong operational focus with a core competence in active asset management by in-country people on site

Executive management team in Europe (CEO, CFO & COO)

European mandate, initial focus on South East Europe

23 Investment rationale

Wide spread between funding costs and initial yield (margin of safety) Markets catching up to Western peers in terms of development

EU members or EU candidates (60/40 by value)

Strong macroeconomic fundamentals and favourable retail environment

Stable currencies closely linked to Euro (or Euro itself)

Political stability and well-established property rights

Opportunity: Ownership of prime assets not dominated by REITS or pension funds (yet)

24 Acquisitions

City Center one, City Center one, The Mall East West Location Sofia, Bulgaria Zagreb, Croatia Zagreb, Croatia Acquisition date Oct 2017 April 2018 April 2018 Price EUR 155 m EUR 283,5 m (90% share) Yield 7,25% 7,00% Expansion opportunities (m²) 12 000 10 000 13 600

City Center one - East and West, Zagreb (Croatia) 25 Operating performance

Leasing 30 Jun 2018

Trading conditions and consumer spend Vacancies positive 0,1%

All shopping centres growing NOI, most WALE showing strong growth 5,4 years

LFL NOI growth well in excess of inflation Euro based or linked leases 99%

All acquisitions performing in line or Leases indexed to CPI or better than estimated fixed escalations 72%

26 Balance sheet

Successfully converted bridge loan into non-recourse Debt maturity term loan with EBRD/IFC (EUR 134m) in June 2018 profile

< 1 year 0% Property value €740 m 1-2 years 0% LTV* 47% 2-3 years 14% Average cost of debt* 3,6% 3-4 years 0% Weighted average loan tenor* 4,5 years 4-5 years 86% Proportion of debt hedged* 45% 0% 20% 40% 60% 80% 100% * non-recourse debt only 27 The way forward

Deliver the supermarket conversion project at The Mall (Sofia)

Execute asset management & redevelopment initiatives

Align with Hyprop from a managerial and operational perspective

Selective acquisitions to bolster scale and diversification

28 FINANCIAL RESULTS

Woodlands (Pretoria East, Gauteng)

29 Distributable earnings

30 Jun 2018 30 Jun 2017 Change (R’000) (R’000) (%)

South African property portfolio 1 937 661 1 916 927 1,1

- Continuing operations 1 929 055 1 854 471 4,0

- Properties sold 8 606 62 456

Investments in sub-Saharan Africa (excl. SA) 78 368 56 972 37,6

Investments in South-Eastern Europe 187 802 101 823 84,4

Fund management expenses (65 142) (67 347) (3,3)

Net interest (280 846) (321 336) (12,6)

Other income 46 671 36 533 27,7

Distributable earnings 1 904 514 1 723 572 10,5

30 Reconciliation to dividend declared

30 Jun 2018 30 Jun 2017 (R’000) (R’000) Dividend for 6 months – first half 933 127 861 423 Dividend for 6 months – second half 971 387 862 149 Total dividend 1 904 514 1 723 572

Shares in issue – first half 247 995 018 248 030 619 Shares in issue – second half 255 448 256 247 899 032

Dividend per share (cents) – first half 376,3 347,3 Dividend per share (cents) – second half 380,2 347,8 Dividend per share (cents) 756,5 695,1

Dividend per share growth (%) - first half 8,3 16,6 Dividend per share growth (%) - second half 9,3 8,0 Dividend per share growth (%) 8,8 12,1

31 Balance sheet extracts

30 Jun 2018 30 Jun 2017 Change (Rm) (Rm) (%) Hyprop’s share Investment property (South Africa) 28 785 27 860 3,3 Investments in sub-Saharan Africa 4 470 4 482 (0,3) (excl. South Africa) South-Eastern Europe 3 843 2 681 43,3 Held-for-sale 199 427 Other assets (includes cash) 1 041 1 362 Total assets 38 338 36 812 4,1

Total debt 11 257 11 407 (1,3)

Net asset value per share (R) 102,98 99,78 3,2

32 Investment profile

South-Eastern Europe R3,8bn

Sub-Saharan Africa 10% (excluding SA) R4,5bn 12%

78% Core South African portfolio R29,0bn

33 Property valuations South African portfolio

Rentable Hyprop % change area share (from Value Cap rate Category (m²) (Rm) 30 Jun 2017)* (R/m2) (%)

Shopping centres 653 258 27 352 3,3% 45 965 6,3 – 7,0

Value centres 48 848 1 303 4,4% 26 675 7,8

Stand-alone offices 20 354 323 3,9% 15 869 8,3 – 8,8

Total 722 460 28 978 3,3% 43 813 6,3 – 8,8

* Excludes properties sold

34 Property valuations

Sub-Saharan Africa South-Eastern Europe (Excluding SA) 30 Jun 2018 30 Jun 2017 30 Jun 2018 30 Jun 2017 (USD million) (USD million) (EUR million) (EUR million) Total value 638 629 Total value 740 300 Ikeja City Mall 151 151 Hyprop share 444 180 AttAfrica & 487 478 Manda Hill Hyprop share 283 282

Rentable Value/ Cap rate Rentable Value/ Cap rate area (m²) m² (%) area (m²) m²) (%)

147 946 USD 4 314 7,8 – 9,0 230 584 EUR 3 347 6,7 – 9,2

35 Effective debt management

30 Jun 2018 30 Jun 2017 (Rm) (Rm)

South African debt 2 950 4 114

▪ Bank debt 600 1 814

▪ Corporate bonds 2 350 2 300

USD bank debt (Rand equivalent) 4 513 4 391

EUR bank debt (Rand equivalent) 3 795 2 673

Cash and cash equivalents (715) (1 126)

Net borrowings 10 543 10 052

Loan-to-value 28,1% 28,9%

36 Sources of funding

R million 30 Jun 2018 600 5% Bank facilities (SA) 30 Jun 2017 1,814 16% % of total debt

2,350 21% DCM funding (SA) 2,300 21%

USD debt 4,513 40% (Rand equivalent) 4,391 39%

EUR debt 3,795 34% (Rand equivalent) 2,673 24%

0 1000 2000 3000 4000 5000

37 Rand denominated debt South African portfolio

Maturity profile 30 June 2018 (years) 30 Jun 2017 (years) Fixed rates and swaps 3,8 3,9 Facilities 3,8 2,2

% of debt fixed 113,6 100,9 Average cost of funding 9,4 8,9

Rand debt Maturity date Status R300m bond Sept 2017 Repaid R450m bond Apr 2018 Repaid R1,2bn bank debt Jun 2018 Repaid New bonds R452m bond Mar 2023 R348m bond Mar 2025

38 USD debt Sub-Saharan Africa

Debt maturity profile 30 Jun 2018 (years) 30 Jun 2017 (years) Fixed rates and swaps 2,4 2,7 Facilities 2,7 2,6

% of debt fixed 63,5 70,4 Average cost of funding 4,8 4,7

USD debt Maturity date Status

USD 40m Oct 2017 Re-financed for 3 years USD 20m Nov 2018 as one facility USD 55m Dec 2017 Re-financed for 3 years USD 17m May 2018 Re-financed for 3 years

39 EUR debt South Eastern Europe

30 Jun 2018 (%) 30 Jun 2017 (%) % of debt fixed - - Average cost of funding 1,7 2,2

EUR debt Maturity date Status Replaced with asset-backed EUR 134,1m bridge loans Mar 2018 finance

EUR 104,5m bridge loan Oct 2018 To be refinanced with 3-year term loans at an estimated EUR 127,2m bridge loan Sep 2018 fixed interest of 2,1%

40 OUTLOOK & FOCUS

City Center one - East (Zagreb, Croatia)

41 Outlook & focus

South Africa ▪ Very cautious outlook on the South African economy ▪ Focus on tenant retention and retaining the quality of the portfolio Sub-Saharan Africa (Excl. SA) ▪ Continue to focus on operational improvement ▪ Consider opportunities to reduce investment exposure South-Eastern Europe ▪ Focus on asset management and expansion opportunities ▪ Consider further acquisitions

Dividend growth 5% to 7%

42 QUESTIONS & ANSWERS

Delta City (Podgorica, Montenegro)

43 APPENDICES

City Center one - West (Zagreb, Croatia)

44 Company structure South African portfolio

Clearwater Mall Somerset Mall Hyde Park Corner

Rosebank Mall Woodlands Boulevard CapeGate 100% owned Offices Atterbury Value Mart Cradock Heights

SOUTH AFRICA Canal Walk (80%) The Glen (75,15%) Co-owned

Offices: Lakefield Held-for-sale

45 Company structure Sub–Sahara African portfolio

Hyprop Investments Mauritius

37,5% 50% 75%

SUB- AttAfrica 50% Manda Hill Ikeja City Mall SAHARAN (Mauritius) (Zambia) (Nigeria) AFRICA 100% owned 47% 45% 75% 75%

West Hills Achimota Retail Kumasi City Accra Mall Mall Centre Mall (Ghana) (Ghana) (Ghana) (Ghana)

46 Company structure South-Eastern Europe portfolio

Hystead Limited (established in the UK) SOUTH- EASTERN 100% 100% 100% 100% 90% 90% EUROPE 60% owned City Center City Center Delta City Delta City Skopje City The Mall one - East, one - West, Belgrade Podgorica Mall Sofia Zagreb Zagreb (Serbia) (Montenegro) (Macedonia) (Bulgaria) (Croatia) (Croatia)

47 Credible track record

Rbn LTV %

36 60% Investment property 33.4 33.3 34.0 32 29.4 31.6 Market cap 28.6 29.0 28 26.4 26.2 LTV % 45% 24 20.2 18.7 19.0 19.3 20 17.4 17.7 26.2% 30% 30,8% 16 28.9% 12.9 26.6% 28.1% 12 23.1% 22.9% 23.1% 15% 8

0 0% Jun 2011 Jun 2012 Jun 2013 Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018

48 % Gross rent to turnover

Deterioration Improvement 13%

12% 10% Portfolio average: +9,1% (2017: +8,6%) 11% 7% 11.2% 8% 10% 10.6% 10.1% 2% 3% 3% 9% 7% 9.0% 8.9% 8.7% 7% 8% 8.3% 1% 7.8% 7%

6% 6.6%

0% The Glen Hyde Park Corner Canal Walk Atterbury Value Clearwater Mall Rosebank Mall Woodlands Somerset Mall CapeGate Mall Shopping Centre Mart Boulevard

49 Trading density

Per month (R/m²)

5 000

4 500 3% Average portfolio growth: +0,5% (2017: +1,4%) 4 000 3 990 1% 3 500 0% 4% 3 413 3 330 3 000 7% 2% 3 042 1%

2 500 2 754 2 748 3% 2 549 6% 2 263 2 000 2 128

1 500

1 000

500

Hyde Park Corner Canal Walk Somerset Mall Clearwater Mall CapeGate Mall Rosebank Mall Woodlands Atterbury Value The Glen Boulevard Mart Shopping Centre

50 Rent ratio

Rental as % of turnover

10%

9.1% 8% 8.5% 7.3% 6.9% 7.1% 6%

0% Jun 2014 Jun 2015 Jun 2016 Jun 2017 Jun 2018 51 Top 8 SA properties

Canal Walk Clearwater Rosebank Mall Woodlands (80% undivided share)

Region Cape Town Region Johannesburg Region Johannesburg Region Pretoria

Total rentable Total rentable Total rentable Total rentable 158 396 87 083 65 886 71 643 area (m²) area (m²) area (m²) area (m²)

Vacancy levels 0,2% Vacancy levels 2,3% Vacancy levels 1,1% Vacancy levels 0,9%

Foot count 20,1 million Foot count 10,2 million Foot count 11,7 million Foot count 8,1 million

52 Top 8 SA properties (cont.)

The Glen Somerset Mall Hyde Park Corner CapeGate (75,15% undivided share)

Region Cape Town Region Johannesburg Region Johannesburg Region Cape Town

Total rentable Total rentable Total rentable Total rentable 69 054 80 428 38 764 63 765 area (m²) area (m²) area (m²) area (m²)

Vacancy levels 0,1% Vacancy levels 5,4 % Vacancy levels 1,9% Vacancy levels 0,5%

Foot count 10,9 million Foot count 11,5 million Foot count 4,5 million Foot count 11 million

53 Disclaimer Forward-looking statements

▪ This document contains forward-looking statements that, unless otherwise indicated, reflect the group’s expectations as at 30 June 2018

▪ Actual results may differ materially from the group’s expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate

▪ The group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on any forward-looking statements

▪ The group disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available as a result of future events or for any other reason, other than as required by the JSE Listings Requirements