Unaudited interim results - Hyprop · Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Rent ratio - property Average monthly foot count / m² 11.8 10.3 12.3 9.7 15.0 14.1 15.1 13.3 11.7

Unaudited interim results As at 31 December 2018

CapeGate, Brackenfell, Cape Town

Stratco

2

• Project architect at ORT

International Terminal

Building (2005 – 2009)

• Development Director at

Compass Group, USA

(2003 – 2005)

• Various retail development

roles at Old Mutual Properties

(1998 – 2003)

• Regional Executive overseeing

Gauteng & Nigeria

• Portfolio Manager – European

investments (2015 – 2017)

• Joined Hyprop as Portfolio

Manager

• Joined Colliers RMS and GM at

Westgate Shopping Centre

• Regional Executive overseeing

Western Cape & Pretoria

portfolio

• Previously GM of Canal Walk

• Previously GM of Menlyn Park

Shopping Mall

• CFO of Mentor Africa Limited

(2007 ‒ 2017)

• Group CFO of Rebhold /

Mvelaphanda Group

(1999 ‒ 2007)

• Extensive experience

• Corporate finance

• Financial reporting &

management

• Taxation & commercial law

• Executive Director at Blend

Property Group

• Manager: Strategic

Investments at Royal Bafokeng

Holdings

• Investment analyst at BJM

• Extensive experience in:

‒ Investments

‒ M&A

‒ Business strategy

Brett Till (50) Wilhelm Nauta (47)

CFO CA (SA)

CIOCA (SA); EDP (Wits)

Morné Wilken (47)

CEOB. Eng (Hons)

Steven Riley (49) Nicole Greenstone (50) Wayne Abegglen (52)

Development ExecutiveB. Arch, PDP (UCT), PMD (GIBS)

Regional ExecutiveHigher Diploma (HR)

• CEO of MAS REI (2018)

• CEO of Attacq Limited

(2011 – 2017)

• COO of Attacq limited

(2008 – 2011)

• Extensive experience in property

development, investment, finance

and corporate restructuring

• His key focus Attacq was the

roll-out of the Waterfall

development in Gauteng,

including Mall of Africa

Joined Dec 2018 Joined Oct 2018 Joined Jul 2016

Joined Nov 2009 Joined Nov 2003

Regional ExecutiveBA (Hons), HDIP ED, Nat Dip Real Estate (valuations)

Joined Oct 2003

Agenda

3

Sub-Saharan Africa

South-Eastern Europe Financial results Outlook

Six month overview

€

$South Africa R

Six month overview

4Canal Walk, Cape Town

Highlights

Refinance of debt

€183mSale of last non-core asset

Distributable income from SA (yoy)

9%Distributable income from Europe (yoy)

17%Vacancies reduced in SA portfolio (retail & office)

1.6%

5

Lakefield

The Glen Shopping Centre, Oakdene, Johannesburg South

Focus Areas, Highs, Lows & Challenges

6

South

AfricaSub-Saharan

Africa

South-Eastern

Europe

Focus Areas

• Moody’s credit downgrade • African impairment / reduced distribution

• New R250m bond for 3.5 years @ 1.44% margin

• Disposal of last non-core asset – Lakefield

• Distributable income from SA up 9% (yoy)

• Stuttafords space all re-let

• Refinance of EUR debt: €183m

• South-Eastern Europe portfolio vacancy <0.1%

• Distributable income from Europe up 17% (yoy)

Highs

Lows

• Managing weakening economy

• Restore Moody's rating to investment grade

• Reducing exposure to Africa

• Growth in distributions

• Edcon restructure

• Repositioning our malls

Challenges

Key Metrics

7

Distribution – cps Distributable earnings - Rm

933 985

500

600

700

800

900

1000

31 Dec 2017 31 Dec 2018

5.6%

Gross assets - Rbn^

42.9 43.2

0

10

20

30

40

50

30 June 2018 31 Dec 2018

NAV per share - R

103.0

99.9

103.7

100.6

98

99

100

101

102

103

104

30 June 2018 31 Dec 2018

Based on IFRS TNAV**

Share price - R

102.381.5

0

20

40

60

80

100

120

30 June 2018 31 Dec 2018

-20.4%

-3.0%

-2.9%

Loan-to-value - %

20.0 21.2

31.2 32.8

0

10

20

30

40

30 June 2018 31 Dec 2018

Based on IFRS See through** Hystead: Guaranteed debt and 60% of NAV

** Incl. Hystead: 60% debt and 60% of NAV

6.4%

5.0%

^ Including 60% of Hystead gross assets

376.3 385.6330.6

383.8

0

200

400

600

Dec 2017 Dec 2018

Group Excl Africa

2.5% 6.6%

0.7%

Contribution to DPS

Property locations as per the next slide of all the SA assets

H Y D E P A R K

C O R N E R

Gauteng region

Western Cape region

86%

<1%

14%

8

South Africa

CapeGate, Brackenfell, Cape Town

OperationsSouth Africa

Leasing

% of

total

portfolio

Rentable

area

(m²)

Rental

growth

(%)

Contractual

escalation

(%)

Retail 7.4 49 010 -1.8 7.3

New lettings 2.6 17 447 -2.0 7.2

Renewals 4.8 31 562 -1.6 7.3

Offices 13.4 7 920 -7.8 7.8

Total 7.9 56 930 -2.2 7.3

1.2%1.4%

0.9% 0.8% 0.9%1.1%

0.0%

0.5%

1.0%

1.5%

2.0%

Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

Retail vacancy

Lease expiries (retail and office)

25%

18%

12% 14%

31%

0%

10%

20%

30%

40%

*2019/2020 *2020/2021 *2021/2022 *2022/2023 *2023+

9

* Expiries for financial year Jul - Jun


10

Rent ratio - portfolio

10.8% 10.7%9.9%

8.6% 8.5% 8.2% 8.0% 7.6%6.5%

0%

5%

10%

15%

Hyde ParkCorner

The GlenShoppingCentre

Canal Walk RosebankMall

ClearwaterMall

AtterburyValue Mart

Woodlands SomersetMall

CapeGate

Deterioration

Improvement

0%1%

6%2%

2% 0%5%

1%

2%

* Figures based on Jul – Dec yoy growth

7.6% 7.7%8.3% 8.5%

8.9%

0%

2%

4%

6%

8%

10%

Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018

Rent ratio - property

Average monthly foot count / m²

11.810.3

12.3

9.7

15.014.1

15.113.3

11.79.9

12.4

9.6

14.813.6

15.2

12.7

0

5

10

15

20

Canal Walk ClearwaterMall


Woodlands CapeGate SomersetMall

RosebankMall

Hyde ParkCorner

YTD 2017 YTD 2018

1%0%1%

4%

3% 5%

1%

1%

2 6442 930 3 073 3 126 3 102

1 000

2 000

3 000

4 000

5 000

2014 2015 2016 2017 2018

Trading density

0.6%5.6% 3.4% 1.4%

5.5%

Edcon exposure ‒ 31 Dec 2018South Africa

11

92.4%

7.6%

90.6%

9.4%

Exposure per property % of gross income

% of GLA

Other tenants

Edcon

2.3%

1.5%1.3%

0.7% 0.6%

0.4% 0.4%0.2%

0.1%

2.1% 2.1%

1.5%

1.2%

0.9%0.8% 0.7%

0.1% 0.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

CanalWalk

ClearwaterMall


Rosebank Mall WoodlandsBoulevard

CapeGateMall

Somerset Mall Hyde ParkCorner

AtterburyValue Mart

% of gross income % of GLA

Other tenants

Edcon

GLA reduction - m²

2019 2020

66 781

50 871

Strategy in the event of Edcon failureSouth Africa

12

Potential tenants identified for space 79% of Edcon space = 53 000m²

Current concluded deals to reduce exposure Take back space of 7 563m² (11%)

Estimated investment required to re-let and re-configure ±R300m

Time period estimated to re-work and re-tenant the space ±15 - 20 months

Estimated rental loss based on the 15-month period R120m

Gross rental income shortfall between current Edcon

and new assumed income Estimated at -R4.5m / month

Numerous Edcon brands trade profitably in Hyprop mallsStrong likelihood of business components

being sold off with continuous trade

DevelopmentsSouth Africa

13

Property Project

Hyprop share

(Rm)

Completion

date

Rosebank Mall Offices Re-glazing and upgrade of atrium 10.0 Aug 2018

Woodlands Food court upgrade – phase 2 9.8 April 2019

Restroom upgrade 6.0 April 2019

The Glen Downsizing of Edgars to unlock space for Checkers 40.8 Nov 2019

Canal Walk Ratanga Junior and food court upgrade 44.0 Dec 2019

Restroom upgrade 24.0 Phased

Total 134.6

WoodlandsSmaller projects completed

Planned projects Canal Walk

• Dion Wired sub-division

• Refuse yard upgrade

SustainabilitySouth Africa

14

GRESB benchmark

CDP water

Clearwater Mall now generates 15% of total energy from solar power

Savings during the past 6 months

Water saving

24.5%Electricity

5.4%Waste recycling

83%

CDP carbon score reduced

61%

B+

42%

A-

First Hyprop submission

2018 2017

Key InitiativesSouth Africa

15

Portfolio approach

Partner with the tenant

Re-invest

Relevance and repositioning of malls

Entertainment

Technology

Embrace online

ServicesCapeGate, Brackenfell, Cape Town

Sub-Saharan Africa

NigeriaGhana

Zambia

Contribution to DPS16

86%

<1%

14%

Manda Hill, Lusaka, Zambia

OperationsSub-Saharan Africa

17



27

17

33 32

22

2928

16

31 31

22

29

0

10

20

30

40

Accra Mall West HillsMall

Achimota Kumasi Manda Hill Ikeja CityMall

YTD 2017 YTD 2018

3%1%

5%2%

4%

0%

6.8%

9.2% 8.9%

6.8%6.0%

8.7% 9.2%

11.1%

7.4%

0%

2%

4%

6%

8%

10%

12%

Accra Mall West Hills Mall Achimota Kumasi Manda Hill

YTD 2017 YTD 2018

Deterioration

Improvement0.3%

0.6%

Note: Turnover provided by tenants

Vacancy as % of GLA

5.8%

10.7% 11.3%14.0%

5.3% 1.5%6.3%

15.6%

3.4%

12.7%

7.2% 3.1%

0%

5%

10%

15%

20%

25%

Accra Mall West HillsMall

Achimota Kumasi Manda Hill Ikeja CityMall

YTD 2017 YTD 2018

0.5%

4.9%7.9%

1.3%

1.9%

1.6%

Lease expiries*

34% 34%

27%

2%3%

0%

10%

20%

30%

40%

2019 2020 2021 2022 2023

* Includes Ikeja

0.8%

0.5%

Key initiativesSub-Saharan Africa

18

Asset management

Right-sizing

Sustainability

West Hills Mall, Accra, Ghana

Reduce exposure

South-Eastern Europe

Contribution to DPS

Macedonia

Serbia

Montenegro

Bulgaria

Croatia

19

86%

14%

The Mall, Sofia, Bulgaria

Hystead at a glance

20

A UK company, modelled on Hyprop

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

Strategic shareholders: Hyprop (60%) and PDI (40%)

– deep retail experience

Strong operational focus with core competence in active asset

management by in-country teams on site

Executive management team in Europe

European mandate, initial focus on South-Eastern EuropeCity Center One West, Zagreb, Croatia

21


10.39.3

10.412.0

8.8 8.910.5

9.310.2

12.3

8.7 8.8

0%

5%

10%

15%

Delta CityBelgrade

Delta CityPodgorica

Skopje CityMall

The MallSofia

City CenterOne East

City CentreOne West

YTD 2017 YTD 2018

3%2%

3%

0%

Note: Turnover provided by tenants

1% 2%

Rent ratio - portfolio

10.5%

9.0%

10.4%

9.2%

8%

9%

10%

11%

Jun Dec

2017 2018

OperationsSouth-Eastern Europe


28.1

21.6 20.6

12.0 12.1 11.5

27.8

22.0 20.5

11.4 11.9 11.2

0

10

20

30

40

Delta CityBelgrade

Delta CityPodgorica

Skopje CityMall

The MallSofia

City CenterOne East

City CenterOne West

YTD 2017 YTD 2018

2%

1%1%

4%1% 3%

211255

223264

100

200

300

400

Jun Dec

2017 2018

Trading density per month - €

6% 3%

12%13% 14%

19%

14%

28%

0%

5%

10%

15%

20%

25%

30%

2019 2020 2021 2022 2023 2024+

22

Lease expiry profile

0.3%

0.2%

0.0%

0.3%

0.0%0.0%

0.0%

0.1%

0.2%

0.3%

0.4%

Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18

Vacancy - portfolio

New lettings & renewals

% of total

portfolio

Rentable area(m²)

Rental growth

(%)

Contractual escalation

(%)

New lettings 1.7 4 079 9.6 1.7

Renewals 5.0 11 729 0.1 1.8

Total 6.7 15 808 2.9 1.8

City Center One West – Zagreb, Croatia

LeasingSouth-Eastern Europe

Debt summarySouth-Eastern Europe

23

Debt maturity profile

Property value

Weighted average loan tenor

Weighted average cost of debt

Proportion of debt hedged

LTV

87%

0%

13%

0%

0%

0%

32%

14%

41%

13%

0% 20% 40% 60% 80% 100%

4-5 years

3-4 years

2-3 years

1-2 years

< 1 yearHyprop guaranteed

Non-recourse€798 m

4.1 years

3.2%

63%

45.7%

2.1 years

2.1%

0%

49.7%

Non-recourseHyprop

guaranteed

24

Developments & sustainabilitySouth-Eastern Europe

Live projects Project Project budget (€ m) Completion date

The Mall Sofia Hypermarket redevelopment 23.5 Aug 2019

Planned projects

The Mall Sofia

Food court redevelopment 0.6 Q4 2019

Bathroom refurbishment 0.3 Q4 2019

Re-surfacing open parking 0.4 Q3 2019

Delta City Podgorica Parking equipment and deck repairs 1.0 Q3 2019

Skopje City Mall Right-sizing of various tenancies & internal mall changes 5.2 Q3 2019 & 2-years

Total 7.5

Sustainability Score

BREEAM certification

Delta City Belgrade Very Good

Delta City Podgorica Good

Skopje City Mall Very Good

Key initiatives

25

Execute asset management & redevelopment initiatives

Reposition for relevance & ‘experience’

Deliver the supermarket conversion project at The Mall (Sofia)

Selective acquisitions to bolster scale and diversification

City Center One West – Zagreb, Croatia

Delta City, Belgrade, Serbia

Financial results

26CapeGate, Brackenfell, Cape Town

0

100

200

300

400

500

600

700

800

900

H1 2017 H2 2017 FY 2017 H1 2018 H2 2018 FY 2018 H1 2019

South Africa Sub-Saharan Africa South-Eastern Europe

Distribution growth

27

Cents per share

347 348

695

376 380

757

38616.6% 8.0%

12.1%

8.3% 9.3%

8.8%

2.5%

13.1%

5.6%

89.3%

Distributable earnings

28

Dec 2018

R000

%

Change

Dec 2017

R000

June 2018

R000

Revenue 1 631 673 6 1 539 370 3 113 712

Property expenses (587 669) 13 (521 113) (1 049 892)

Net property income 1 044 004 3 1 018 257 2 063 820

Other operating expenses (20 649) (27) (28 295) (55 778)

Operating income 1 023 354 3 989 962 2 008 042

Net interest (138 862) (14) (161 646) (282 273)

Other income 20 425 (11) 22 996 46 671

Dividends received 111 434 41 78 820 182 778

Net income before fair value adjustments 1 016 352 9 930 132 1 955 219

Net income before fair value adjustments 1 016 352 9 930 132 1 955 219

South Africa 833 022 8 771 784 1 590 217

Sub-Saharan Africa 47 177 (11) 52 960 128 275

South-Eastern Europe 136 153 29 105 388 236 727

Distributable earnings 985 240 6 933 127 1 904 514

South Africa 844 682 9 776 326 1 591 673

Sub-Saharan Africa 4 405 (89) 40 025 78 368

South-Eastern Europe 136 153 17 116 776 234 473

Dec 2018

R000

Dec 2017

R000

June 2018

R000

Total profit for the period/ year attributable to shareholders of the

company181 894 1 436 930 2 529 466

Adjusted for: 803 345 (503 803) (624 952)

Change in fair value - investment property (387 904) (541 802) (646 021)

Change in fair value - derivative instruments (3 515) 6 943 (29 085)

Change in fair value - financial asset 213 364 41 393 (87 761)

Derecognition of financial guarantee (33 674) (11 984) (11 984)

Profit on disposal - investment property (2 697)

Impairment - loans to joint ventures 1 069 991 8 539 166 441

Impairment - joint venture - - 10 103

Deferred and normal tax 10 138 6 080 39 485

Capital and other items * (900) 14 721 (5 831)

Income from sub-Saharan Africa * (64 155) (27 693) (57 602)

Distributable earnings 985 240 933 127 1 904 514

29

* Net effect of converting IFRS earnings to distributable earnings

Reconciliation of attributable net profitto distributable earnings

Bank & DCM debt profile

On balance sheet by lender

Dec 2018

Investec

OMSFIN

RMB

USD bank facilities

EUR bank facilities

Group (incl. guaranteed debt) by lender

Dec 2018

5%

3%54%

34%

4%

10%3%

26%

38%

21%2%

5%

34%

61%

3%

21%

36%

40%

DCM funding

Standard Bank

GroupZAR DCM facilities

ZAR bank facilities

Standard Bank

Group

OMSFIN

DCM funding

RMB

Nedbank

Investec

USD bank facilities

ZAR bank facilities

ZAR DCM facilities

On balance sheet sources of funding

Dec 2018

Group (incl. guaranteed debt) sources of funding

Dec 2018

30

824

1 796

650

2 699

246

2 821

863

317

3 019

250

400 452348 500

1 000

1 500

2 000

2 500

3 000

3 500

Q1:2019

Q2:2019

Q3:2019

Q4:2019

Q1:2020

Q2:2020

Q3:2020

Q4:2020

Q1:2021

Q2:2021

Q3:2021

Q4:2021

Q1:2022

Q2:2022

Q3:2022

Q4:2022

Q1:2023

Q2:2023

Q3:2023

Q4:2023

Q1:2024

Q2:2024

Q3:2024

Q4:2024

Q1:2025

Total debt maturityRand equivalent – includes guaranteed debt in Hystead and 100% of Ikeja

31

Total debt (Rm)

R824m (Q1:2019) refinanced

for 3 years to 31 March 2022

Refinance in progress

32

31 Dec 2018

(Rm)

30 Jun 2018

(Rm)

South African debt 3 199 2 951

• Bank debt 600 600

• Corporate bonds 2 599 2 350

USD bank debt (Rand equivalent of Hyprop’s effective %) 4 744 4 513

EUR bank debt (Rand equivalent) 5 177 4 963

Cash and cash equivalents (893) (704)

Net borrowings 12 227 11 723

Loan-to-value 32.8% 31.2%

LTV calculationsWith recourse to Hyprop balance sheet

LTV calculations Comparison between Hyprop and Moody’s methodologies

33

Per

Balance Sheet

Moody’s

methodology

Hyprop

methodology

Per

Balance Sheet

Moody’s

methodology

Hyprop

methodology

Dec 2018 Dec 2018 Dec 2018 Jun 2018 Jun 2018 Jun 2018

Hyprop total assets 34 785 233 34 785 233 34 785 233 35 012 920 35 012 920 35 012 920

Financial asset - Hystead 176 473 176 473 152 556 152 556

Hystead total assets 13 941 899 13 217 510

Hystead NAV (total assets - in-country debt) x 60% 4 752 879 4 297 489

Total assets 34 961 706 48 727 132 39 714 585 35 165 476 48 230 430 39 462 965

Hyprop gross debt 8 403 239 8 403 239 8 403 239 7 884 994 7 884 994 7 884 994

Hystead gross debt 12 562 624 12 194 954

Hystead Debt guaranteed by all shareholders (gross) 6 542 190 6 352 742

Hystead Debt guaranteed by PDI (EUR 40m) (659 200) (640 128)

Security from PDI held by Hyprop (EUR 46.8m) (771 489) (748 950)

Total debt 8 403 239 20 965 863 13 514 740 7 884 994 20 079 948 12 848 659

Gross debt / total assets 24.0% 43.0% 34.0% 22.4% 41.6% 32.6%

Jun 2018 (R ‘000)Dec 2018 (R ‘000)

Hystead capital structure (€)

34

PDI

Dec 2018

€ m

HYPROP

Dec 2018

€ m

PDI

Dec 2018

%

HYPROP

Dec 2018

%

Debt guaranteed directly % 40 361 10 90

Adjusted for: 91 (91) 23 (23)

PDI - back to back security - UK Listed shares 47 (47) 12 (12)

Guarantee fee* 44 (44) 11 (11)

Subtotal 131 270 33 67

% Shareholding in Hystead (160) (241) (40) (60)

Perceived (under)/over-exposure (29) 29 (7) 7

Debt guaranteed directly* Guarantee fee

PDI

Dec 2018

%

% Shareholding in Hystead 40

Adjusted for direct guarantees and security: (22)

PDI - €40m direct guarantee to lenders (10)

PDI - €46.8m back to back security

- UK listed shares (12)

Unsecured portion 18

Guarantee fee (60% x 18.3%) (11)

Carry 7

241

160

60%

40%

100% 10%

12%

11%

67%

270

26 305* 25 520*

Equity bridgeHyprop group (Rm)

35

NAV

Jun 2018

Net operating

income

Africa

impairments

Property

re-valuations

Distributions

paid

Currency

translation Other

NAV

Dec 2018

* NAV excluding minorities

25 512 26 064

NAV bridgeHyprop & Hystead (Rm)

36

TNAV – R / share 101

LTV on property assets 25.2%

LTV on total assets 24.0%

TNAV – R / share 104

LTV on property assets 45.0%

LTV on total assets 43.1%

Hystead

Hyprop

NAV

Property

assets

Hystead

cash

Other

assets

In-country

finance

Equity

borrowings

Other

liabilities

Inter-group

eliminations

Aggregated

NAV

Investment profile

37

Core South African portfolio R29.7bn = 73%

Cap rates: 6.3% – 8.8%

Sub-Saharan Africa (excl. SA)Hyprop share R3.4bn

Cap rates: 7.8% – 9.0%

South-Eastern EuropeHyprop share R7.9bn

Cap rates: 7.0% – 9.3%

Totalportfolio R41bn

68% 4%

8%

19%

SA shopping centresSA value centres

SA standalone offices 1%

Outlook & Focus

38Woodlands, Pretorius Park, Pretoria East

Outlook & focus

39

• Reposition malls

• Partner with tenants

• Portfolio approach

• Reduce exposure

• Active asset management

• Strengthen the entertainment

and restaurants

• Secure rights for extensions

South Africa Sub-Saharan Africa (Excl. SA) South-Eastern Europe

Hyprop

• Strategy

• Review debt position

• Restore Moody’s investment grade

• Recycle capital to support growth

• Cash-backed distributions

• Long-term investment decisions

Questions & Answers

40Hyde Park Corner, Johannesburg

Appendices

41Rosebank Mall, Johannesburg

Aggregated Balance Sheet

42

Hyprop Group Hystead Group* Aggregated Hyprop Group incl Hystead**

Dec 2018

R000

June 2018

R000

Dec 2018

R000

June 2018

R000

Dec 2018

R000

June 2018

R000

Non-current assets 33 558 090 33 951 124 13 263 131 12 703 739 46 644 748 46 502 308

Investment property 31 303 632 30 854 277 13 193 168 12 676 758 44 496 800 43 531 035

Other property investments 2 054 164 2 918 721 - - 2 054 164 2 918 721

Other non-current assets 200 294 178 126 69 963 26 981 93 784 52 551

Current assets 1 403 616 1 214 350 678 768 512 699 1 991 283 1 650 565

Receivables and other current assets 502 494 498 858 172 641 106 232 584 033 528 607

Cash and cash equivalents 901 122 715 492 506 127 406 466 1 407 250 1 121 958

Total assets 34 961 706 35 165 475 13 941 899 13 216 438 48 636 031 48 152 873

Non-current liabilities 6 435 083 8 203 399 12 306 924 8 926 768 18 393 430 16 944 481

Borrowings – in-country 5 872 230 7 815 651 5 922 643 2 873 344 11 794 873 10 688 995

Borrowings – equity - - 5 717 950 5 550 277 5 717 950 5 550 277

Other non-current liabilities 562 853 387 748 666 331 503 146 880 607 705 209

Current liabilities 3 014 212 566 840 1 255 510 4 082 283 4 178 621 4 572 639

Borrowings – in-country 2 531 009 69 343 97 791 2 943 557 2 628 800 3 012 900

Borrowings – equity - - 824 240 800 070 824 240 800 070

Other current liabilities 483 203 497 497 333 479 338 656 725 581 759 669

Total liabilities 9 449 295 8 770 239 13 562 434 13 009 051 22 572 051 21 517 120

Net Assets 25 512 410 26 395 236 379 465 207 387 26 063 980 26 635 753

TNAV (Excl. - deferred tax, fin liab) 25 703 215 26 573 238 594 989 267 845 26 470 309 26 874 214

TNAV per share *** (Rands per share) 101 104 104 105

LTV (Borrowings/property assets) 25.2% 23.3% 45.0% 43.2%

LTV (Borrowings/total assets) 24.0% 22.4% 43.1% 41.6%

* Hystead Group excludes the financial liability and goodwill written off

** After elimination of inter-group balances

*** Based on 255 540 828 Hyprop shares in issue for distribution purposes

Balance sheet extracts

43

31 Dec 2018

(Rm)

30 Jun 2018

(Rm)

Change

(%)

Hyprop’s share

Investment property (South Africa) 29 479 28 785 2.4

Investments in sub-Saharan Africa

(excl. South Africa)3 422 4 470 (23.4)

South-Eastern Europe 4 148 3 843 7.9

Held-for-sale 206 199

Other assets (includes cash) 1 221 1 041

Total assets 38 477 38 338 0.4

Net borrowings 12 227 11 722 4.3

Guarantees on Balance Sheet

44

Details of movement in financial guarantees

Dec 2018

R000

Dec 2017

R000

Jun 2018

R000

Balance at beginning of the period 185 686 163 855 163 855

Net change 162 891 29 409 21 831

Recognition of new financial guarantees 196 565 41 393 33 815

Derecognition of expired guarantees (33 674) (11 984) (11 984)

Balance at end of period 348 577 193 264 185 686

Property valuations

45

31 Dec 2018

(USD million)

30 Jun 2018

(USD million)

Total value 550 638

Ikeja City Mall 121 151

AttAfrica & Manda Hill 429 487

Hyprop share 241 283

Rentable

area (m²) Value/m²

Cap rate

(%)

147 946 USD 3 715 7.5 – 9.0

Rentable

area (m²) Value/m²

Cap rate

(%)

241 326 EUR 3 309 6.9 – 9.2

31 Dec 2018

(EUR million)

30 Jun 2018

(EUR million)

Total value 799 740

Hyprop share 460 444

Sub-Saharan Africa (Excluding SA) South-Eastern Europe

Rand denominated debtSouth African portfolio

46

Maturity profile 31 Dec 2018 (years) 30 June 2018 (years)

Fixed rates and swaps 2.9 3.3

Facilities 3.3 3.8

% of debt fixed 101.6 113.6

Average cost of funding 9.5 9.4

358

650

425

317250

400452

348

0

200

400

600

800

Q1:2019

Q2:2019

Q3:2019

Q4:2019

Q1:2020

Q2:2020

Q3:2020

Q4:2020

Q1:2021

Q2:2021

Q3:2021

Q4:2021

Q1:2022

Q2:2022

Q3:2022

Q4:2022

Q1:2023

Q2:2023

Q3:2023

Q4:2023

Q1:2024

Q2:2024

Q3:2024

Q4:2024

Q1:2025

South African debt (Rm)

USD debtSub-Saharan Africa

47


Fixed rates and swaps 2.0 2.4

Facilities 2.2 2.7

% of debt fixed 58.1 63.5


African debt ($m)

100

17

167

60

0

50

100

150

200

Q1:2019

Q2:2019

Q3:2019

Q4:2019

Q1:2020

Q2:2020

Q3:2020

Q4:2020

EUR debtSouth-Eastern Europe

48


% of debt fixed 32.1 -


50

164

183

0

50

100

150

200

Q1:2019

Q2:2019

Q3:2019

Q4:2019

Q1:2020

Q2:2020

Q3:2020

Q4:2020

Q1:2021

Q2:2021

Q3:2021

Q4:2021

Euro Debt (€m) (only guaranteed loans)

Edcon exposure by brand

49

* Gross income (based on basic rental & operating cost)

Jet 0.8%

Boardmans 0.4%

River Island 0.3%

Edgars Beauty 0.2%

Edgars Cosmetics Gallery 0.2%

Top Shop 0.1%

J-Exchange/Free 2BU 0.1%

Edgars Active 0.1%

Dune 0.1%

Jigsaw, 0.1%

Accessorize 0.1%

La Senza 0.1%

Edgars 4.5%

Edcon Brands

% of total gross

income*

% of total

GLA

Edgars 4.46% 6.81%

Jet 0.77% 1.10%

CNA 0.55% 0.44%

Boardmans 0.36% 0.29%

River Island 0.27% 0.16%

Edgars Beauty 0.19% 0.10%

Edgars Cosmetics Gallery 0.17% 0.08%

Top Shop 0.13% 0.10%

J-Exchange/Free 2BU 0.10% 0.08%

Edgars Active 0.09% 0.05%

Dune 0.08% 0.02%

Jigsaw 0.06% 0.02%

Accessorize 0.06% 0.02%

La Senza 0.05% 0.02%

Salsa 0.04% 0.03%

Inglot 0.04% 0.01%

TM Lewin 0.03% 0.02%

Jo Malone 0.03% 0.01%

Edgars Office 0.03% 0.05%

Lipsy 0.03% 0.02%

Dr. Martens 0.03% 0.02%

MAC 0.02% 0.01%

Bobbi Brown 0.02% 0.01%

Total 7.62% 9.45%

CNA 0.5%


50

Per month (R/m²)

4 004

3 6573 548

3 251

2 9452 836

2 6812 458

2 261

1 000

2 000

3 000

4 000

5 000

Hyde ParkCorner

CanalWalk

SomersetMall

ClearwaterMall

CapeGate RosebankMall

Woodlands AtterburyValue Mart



Trading density*

1%

1%

1%0%

0%

3%

3%

0%0%

Average monthly foot count – millions / m²

12

10

12

10

1514

15

13

12

10

12

10

15

14

15

13

0

2

4

6

8

10

12

14

16

18

20

CanalWalk

ClearwaterMall


Woodlands CapeGate SomersetMall

RosebankMall

Hyde ParkCorner

YTD 2017 YTD 2018

1%0%

1%

4%

3%5%

1%

1%

Lease expiry profile

51

Retail

Expiring area

(m²)

% Rentable area

of centre

Clearwater 33 301 38

CapeGate Regional Mall 29 393 46

Canal Walk 23 105 16

Rosebank Mall 16 059 24

The Glen 14 697 18

Woodlands Boulevard 10 575 15

Somerset Mall 9 639 14

Hyde Park Corner 8 824 31

Atterbury Value Centre 6 675 14

Retail 152 268 23

Offices 6 604 15

Total 158 871 22

Expiring area

(m²)

% Rentable area

of centre

17 641 20

3 986 6

33 222 22

3 231 5

7 258 9

22 845 32

8 673 13

3 827 13

9 530 20

110 213 17

6 544 15

116 757 17

2019 / 2020 2018 / 2019

Trading performance

52

Primary categoryTrading density

growth% of

total turnover% of area

Department stores: Clicks, Dis-Chem, Edgars, Game, Woolworths (0.5) 27,1 25,3

Apparel (3,6) 18,8 21,3

Food/supermarket 1,4 11,5 10,6

Home furnishings 7,3 4,9 6,8

Speciality/toys (6,5) 5,4 6,5

Sporting/outdoor goods & wear 3,5 5,8 5,8

Food service 5,9 6,4 5,7

Entertainment/movies (1,3) 1,0 5,3

Electronic/photography/music/mobile 1,8 7,0 3,9

Shoes 2,9 2,0 2,1

Books/cards/stationery (1,3) 1,8 1,8

Health & beauty 0,8 2,4 1,6

Jewellery 1,1 2,7 0,9

Eyewear 2,3 1,0 0,6

Note: IPD/MSCI allocations


Company structure South African portfolio

53

100% owned

Co-owned

Somerset MallClearwater Mall Hyde Park Corner

Rosebank Mall Woodlands Boulevard CapeGate

Atterbury Value MartOffices

Cradock Heights

Canal Walk (80%) The Glen (75,15%)

SOUTH

AFRICA

South African properties

54

Portfolio summary

Canal Walk &

Canal Walk

Offices

Clearwater

Mall

The Glen

Shopping Centre

Woodlands

Boulevard

CapeGate

Regional Mall

% Ownership 80% 100% 75.15% 100% 100%

GLA 158 750 87 060 80 431 71 624 63 832

Vacancy levels 0.5% 1.9% 3.7% 0.7% 0.0%

Avg foot count per m² / month 11.7 9.9 12.4 9.6 14.8

South African properties

55

Portfolio summary

Somerset

Mall

Rosebank

Mall

Hyde Park Corner

& Offices

Atterbury

Value Mart

Cradock

Heights

Rosebank Mall

Offices

% Ownership 100% 100% 100% 100% 100% 100%

GLA 69 018 65 836 38 771 48 641 4 468 18 249

Vacancy levels 0.1% 0.8% 6.7% 0% 30.4% 12.8%

Avg foot count per m² / month 13.6 15.2 12.7 - - -

100% owned

AttAfrica

(Mauritius)

Manda Hill

(Zambia)

Ikeja City Mall

(Nigeria)

Accra Mall

(Ghana)

West Hills Mall

(Ghana)

Achimota Retail Centre

(Ghana)

Kumasi City Mall

(Ghana)

37,5% 50% 75%

50%

Hyprop Investments Mauritius

47% 75% 75%45%

Company structure Sub–Saharan African

56

SUB-SAHARAN

AFRICA

Sub-Saharan Africa properties

57

Portfolio summary Accra Mall West Hills Mall Achimota Kumasi Manda Hill Ikeja City Mall

% Ownership 17.6% 16.8% 28.1% 28.1% 68.8% 75.0%

GLA m² 21 311 28 272 15 534 18 604 42 002 22 223

Vacancy levels 6.3% 15.6% 3.4% 12.7% 7.2% 3.1%

Avg foot count per m² / month 28 16 31 31 22 29

Company structure South-Eastern Europe portfolio

58

60%

owned

100% 100% 90%

Delta City

Belgrade

(Serbia)

Delta City

Podgorica

(Montenegro)

Skopje City Mall

(Macedonia)

The Mall

Sofia

(Bulgaria)

City Center

One - East,

Zagreb

(Croatia)

City Center

One - West,

Zagreb

(Croatia)

100% 100% 90%

Hystead Limited

(established in the UK)

SOUTH-

EASTERN

EUROPE

South-Eastern Europe properties

59

Portfolio summary

Delta City

Belgrade

Serbia

Delta City

Podgorica

Montenegro

Skopje

City Mall

Macedonia

The Mall

Sofia

Bulgaria

City Center

One East

Zagreb, Croatia

City Center

One West

Zagreb, Croatia

% Ownership 60% 60% 60% 60% 54% 54%

GLA 29 862 23 753 36 264 51 211 48 574 46 760

Vacancy levels 0% 0% 0% 0% 0.2% 0%

Avg foot count per m² / month 27 21 20 13 11 10

DisclaimerForward-looking statements

60

• This document contains forward-looking statements that, unless otherwise indicated, reflect the group’s

expectations as at 31 December 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

Contact detailsInvestor relations

61

Mobile: +27 82 497 9827

Tel: +27 10 003 0661

E-mail: [email protected]

Michèle Mackey

Documents

Unaudited interim results - Hyprop · Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 Rent ratio - property Average monthly foot count / m² 11.8 10.3 12.3 9.7 15.0 14.1 15.1 13.3 11.7