ANNUAL RESULTS for the year ended 31 March 2017 A LEADING PORTFOLIO CONTENTS Accelerate since listing 1 Highlights for the period under review 4 Accelerate at a glance 6 Financial results 8 Like-for-like net property income and key indicators 12 Capital structure 17 Our strategic nodes 19 Looking forward 40 Annexure 1: Property portfolio summary 43 Annexure 2: Drive for quality since listing 47 Annexure 3: Accelerate’s positioning on the JSE 50 ACCELERATE SINCE LISTING 1 ACCELERATE SINCE LISTING Total return since listing Asset growth (Rands per share) (Rbn) R11,6bn 69 properties Total return since listing (75%) 3.68 R8,4bn 31 March 2017 distribution 0.58 61 properties R6,7bn R6,1bn 52 properties 31 March 2016 distribution 0.54 R5,5bn 52 properties 51 properties 31 March 2015 distribution 0.49 31 March 2014 distribution (110 days) 0.14 Capital growth 1.93 0 1 2 3 4 At listing Mar 14 Mar 15 Mar 16 Mar 17 RSA properties APF Europe Acquisition of Acquisition of Acquisition of KPMG portfolio Portside Eden Meander shopping centre 800 for R850m for R755m in George for R365m 700 APF lists at R4,88 600 Cents 500 Equalisation option (8%) on Acquisition of Fourways Super Regional agreed property portfolio in CEE (Austria and Slovakia) for €82,1m 400 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 2 STRATEGY, FOCUS AND OUTCOMES Strategy Retail focus Nodal strategy Drive for quality Geographic diversification Active asset Quality enhancing Establishing future growth Key operational focus Reduce vacancies management acquisitions platforms and nodes Outcomes Remained Average DPS Nodes Enhanced quality Successful launch retail focused growth 7,7% of European 67,4% of revenue Fourways Acquisitions: single tenant platform Vacancies reduced development KPMG from 10,01% at launched Portside Acquired 31 March 2014 Eden Meander initial portfolio to 6,85% at Strategic of R1,25bn 31 March 2017 acquisitions Disposal of non core assets On the ground Cost to income Development experienced ratio upside Developments management 16,9% team in line with market Synergies Reinvestment unlocked in core assets 3 HIGHLIGHTS FOR THE PERIOD UNDER REVIEW 4 HIGHLIGHTS FOR THE PERIOD UNDER REVIEW • R1bn revenue mark achieved Financial milestones • R500m full year distribution achieved • Acquisition of nine single tenant OBI retail properties for €82m at yield of 11,5% (Rand) Launch of European single • Scalable platform put in place tenant platform • Portfolio valued at €87m by CBRE • Fourways Mall re-development well under way › Foodcourt and Bounce open › Kidzania concept signed › Leroy Merlin entering node Nodal strategy • Cedar square re-development: ongoing, exciting additional tenants signed • Portside: Premium grade office in Cape Town Foreshore acquired in June 2016 • Murray & Roberts building in the Cape Town Foreshore acquired in February 2017, large scale commercial and residential development opportunity • Eden Meander 28 240 m² retail centre in George acquired in October 2016 Drive for quality • The CITI bank building in Sandton acquired in February 2017 5 ACCELERATE AT A GLANCE 6 ACCELERATE AT A GLANCE AS AT 31 MARCH 2017 A - Large National: 65,1% Property portfolio Asset value: R11,6bn Tenant profile B - National Listed/Franchises: 13,7% (% of revenue) C - Other: 21,2% Fourways Precinct: 175 563 m² Charles Crescent – Kramerville: 44 380 m² Strategic nodes Market cap* R6,64bn Foreshore – Cape Town: 51 057 m² Somerset West – Cape Town: 19 281 m² NAV per share R7,46 GLA 633 494 m² Yield** 8,6% Occupancy 93,1% (excl. structural vacancies & Portside) WA cost of funding 8,4% WA term: 2,3 years WALE (revenue) 5,6 years Total debt: R4,87bn Debt LTV: 41,9% ICR: 2,6x Retail: 64,7% Office: 26,5% Portfolio split (revenue) Industrial: 6,1% 77,9% of debt hedged Hedging European retail: 2,7% WA term: 2,4 years * Market cap calculated on a closing share price at 31 March 2017 of R 6,73 7 ** Actual Yield for the year ended 31 March 2017, calculated on an average share price of R6,70 FINANCIAL RESULTS 8 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31 March 2017 31 March 2016 High level overview of performance Consolidated statement of financial position (R’000) (R’000) • Investment property: ASSETS The increase in the portfolio is due to acquisitions Non-current assets 11 900 199 8 496 381 of R2,8bn and R505m of upward valuations driven Investment property 11 860 689 8 422 776 by increased income Derivative financial instruments 38 134 73 086 Equipment 1 376 519 • Trade and other receivables: Current assets 483 688 278 605 Includes a R32m deposit paid to the transferring Trade and other receivables 350 070 207 177 attorneys for the remaining Noor properties which Cash and cash equivalents 133 618 71 428 are in the process of being transferred Investment property held for sale - 130 726 • Shareholders interest: Fair value of investment property assets - 130 726 Equity of R1,05bn raised Total assets 12 383 887 8 905 712 • Contingent purchase consideration: EQUITY AND LIABILITIES Expired in December 2016, no issuances made in Shareholders' interest 7 352 992 5 771 966 this financial year Share capital 5 156 011 4 105 211 Other reserves 52 944 20 045 • Long-term borrowings: Minority interest 12 421 - New debt of R1,9bn raised to fund acquisitions Retained earnings 2 131 616 1 646 710 and redevelopments Total equity 7 352 992 5 771 966 • Current portion of long-term borrowings: Non-current liabilities 3 887 257 2 597 181 R197m expiring in June 2017 fully refinanced post Long-term borrowings 3 887 257 2 569 905 year end Contingent liability on conditional purchase costs - 27 276 Current liabilities 1 143 638 536 565 Trade and other payables 151 619 114 209 Short-term portion of long-term borrowings 992 019 422 356 Total equity and liabilities 12 383 887 8 905 712 9 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 31 March 2017 31 March 2016 High level overview of performance Consolidated statement of comprehensive income (R’000) (R’000) • Revenue: Revenue, excl. straight-line rental revenue adjustment 1 062 999 818 700 Straight-line rental revenue adjustment 36 958 68 059 Revenue in excess of R1bn for the period Revenue 1 099 957 886 759 • Property expenses (286 314) (225 114) Foreign exchange losses: Net property income 813 643 661 645 Relates to unrealised losses on consolidation of Other operating expenses (74 022) (38 694) APF Europe Operating profit 739 621 622 951 Fair value adjustments 469 463 386 746 • Cost to income: Other income/(expenses) (1 509) (142) Cost to income ratio of 16,9% Unrealised foreign exchange gains/(losses) (47 367) - Profit on disposal of asset 7 038 - • Fair value adjustments: Finance income 34 094 14 247 Fair value adjustment of R475m comprises Profit before long-term debt interest and taxation 1 201 340 1 020 802 downward mark to market movement on swaps of Long-term debt interest (299 032) (215 770) Profit before taxation 901 308 805 032 R34,9m and an upward property re-valuation of Taxation (423) - R505m Profit after taxation 901 885 805 032 Attributable to equity holders of the holding company 898 372 805 032 Attributable to minority interest 3 513 - EARNINGS PER SHARE Basic earnings per share (cents) 101.47 107.53 Diluted earnings per share (cents) 99.96 105.92 Headline earnings per share (cents) 44.05 56.27 Diluted headline earnings per share (cents) 43.39 55.43 DISTRIBUTABLE EARNINGS Profit after taxation attributable to equity holders 898 372 805 032 Less: straight-line rental revenue adjustment (36 958) (68 059) Less: fair value adjustments (466 398) (383 746) Add: Unrealised gains/(losses) 55 804 - Add: distribution from reserves 52 297 42 863 Less: Profit from sale of properties (1 107) Distributable earnings 502 010 396 090 10 DISTRIBUTION BUILD-UP Actual 31 March 2017 Actual 31 March 2016 (R’000) (R’000) Distribution analysis Distributable earnings 502 010 396 090 Less: Interim distribution 232 599 192 360 Final distribution 269 411 203 730 Shares qualifying for distribution Number of shares at year –end 986 372 706 801 344 007 Less Noor transaction ceded shares - (13 290 135) Shares issued after year end - 16 100 000 Less: bulk ceded shares to Accelerate* (51 070 184) (51 070 184) Shares qualifying for distribution 935 302 522 753 083 688 Final distribution per share (cents) 28,80469 27,05277 Interim distribution per share (cents) 28,76627 26,61692 Total distribution per share for the year (cents) 57,57096 53,66969 * Note: the above distribution per share does not include 51 070 184 shares which do not qualify for distribution, as the distribution was ceded to the Fund, until the earlier of 31 December 2021 or such time that the bulk is developed 11 LIKE-FOR-LIKE NET PROPERTY INCOME AND KEY INDICATORS 12 LIKE-FOR-LIKE NET PROPERTY INCOME 2016 – 2017 CORE PORTFOLIO CONTINUES TO PERFORM Like-for-like net income growth 31 March 31 March (%) 2017 2016 R’000 R’000 % change 8.1% Gross property revenue 1 062 999 818 700 29,8 8.0% Office 280 523 173 262 61,9 Industrial 65 124 36 108 80,4 Retail 688 509 609 330 12,9 European – Single tenant 28 843 - 100,0 7.7% Property expenses (286 314) (225 114) 27,7 Office (70 333) (49 426) 42,3 Industrial (6 761) (4 743) 42,5 Retail (206 417) (170 945) 21,4 European – Single tenant (2 803) - 100,0 Industrial Office Retail Net property income 776 685 593 586 30,5 Office 210 190 123 836 69,7 Industrial 58 363 31 365 86,1 Portfolio movements 2016 to 2017: Retail 482 092 438 385 9,6 European – Single tenant 26 040 - 100,0 Acquisitions: Acquisitions (107