IncomeandCapitalSAListedPropertySectorTotalReturns

-20,0%

-10,0%

0,0%

10,0%

20,0%

30,0%

40,0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CapitalGrowth

IncomeGrowth

TotalGrowth

Source:Bloomberg,STANLIBResearch,September2016

2

DespiteslowingGDPgrowthStrongIncomeGrowthfromtheListedPropertySector

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

'02 '04 '06 '08 '10 '12 '14 '16

GDP growth DPS growth

Source:AviorResearch,September2016

3

SectorexposurebyvalueSAListedPropertyExposure

54,87%29,58%

11,90%

2,94% 0,71%

Retail

Office

Industrial

Residential

Other

Source:STANLIBResearch,CompanyData,September2016

Toughandcompetitiveofficemarket

4Source:STANLIBResearchMay,June&July2016

Competitiveretailenvironmentandincreasingsupply

5

Source:AttacqCompanyPresentation,STANLIBResearch,MayandSeptember2016

Demandforretailspacedrivenbyinternationalandlocalbrands

6Source:STANLIBResearch,GoogleImages,September2016

7

NewequityraisedoverthelastfewyearsStrongappetiteforlistedproperty

Source:STANLIBResearch,CompanyData,October2016

Year Amount Raised

2011 R16bn

2012 R11bn

2013 R18bn

2014 R40bn

2015 R36bn

2016sofar R26bn

TOTAL R147bn

RecentListingsHammerson

EPPGTC

ListingscomingupLibertyTwoDegreesSpearPropertiesStudentHousing?

8

37%exposuretooffshorepropertiesIncreasedoffshoreexposureintheSAListedPropertyIndex

99% 96% 95% 90% 89%81%

74%63%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013 2014 2015 Current

ZAR USD EUR GBP AUD

Source:AviorResearch,September2016

9

ForwardYieldandIncomeGrowthSouthAfricanListedPropertySector

*EXCLUDINGRES,NEP,FFA,FFB,IPF,ROC,STP,MSP(THESETOGETHEREQUATETO48%OFTHESAPYMARKETCAP)Source:StanlibResearchNov2016

RES

OCTTEXREB

EMI

SAC

VKEGRTRDF

HYPNEP

RPL

DLTAPF AWA

AIADIA

DIB

FFA

FFB

TWR

TDH

BWNHPB

ILU

ITU

IAPIPF

EQUFVT

CRPIHL

SSSROC

ATT

PIVING CCO

SGA

SGB

MDP

SRE

STP

NFP

MSP

LDO

HMN

EPP

SARGRP

0%

5%

10%

15%

20%

25%

30%

0,00% 1,00% 2,00% 3,00% 4,00% 5,00% 6,00% 7,00% 8,00% 9,00% 10,00% 11,00% 12,00% 13,00% 14,00% 15,00%

Expe

cted

dividen

dgrow

thover3

years(C

AGR)

12monthexpecteddividendyield

SA 10-yearbondyieldSAPY forwardyield(7.0%)

SAPY ex-offshore(7.9%)*SAPYoffshore(5.5%)

10

DividendgrowthstillreasonableSAListedPropertyOutlook

Source:Bloomberg,STANLIBResearch,September2016

0-12mDPSgrowth

12m-24mDPSgrowth

24m-36mDPSgrowth

3YearCAGR

Dividendgrowth:Dividendpayingcompanies 8.82% 7.27% 6.89% 7.66%

Dividendgrowth:Development companies 1.00% 1.00% 1.00% 1.00%

Dividendgrowth:JSAPYINDEX 9.07% 8.10% 7.92% 8.36%

Dividendgrowth:JSAPYINDEX(EXOFFSH0RE) 7.53% 7.02% 7.09% 7.21%

Dividendgrowth:JSAPYINDEX(OFFSHORE) 12.11% 10.14% 9.45% 10.56%

Dividendgrowth:UNIVERSE 8.78% 7.23% 6.86% 7.62%

IncomeandCapitalSAListedPropertySectorTotalReturns

-20,0%

-10,0%

0,0%

10,0%

20,0%

30,0%

40,0%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CapitalGrowth

IncomeGrowth

TotalGrowth

Source:Bloomberg,STANLIBResearch,September2016

12

ForlocalbalancedportfoliosAddinglistedpropertyhashelpedtoboostreturns

13,7

11,011,5

9,5

7,3

14,1

11,4 11,8

9,8

7,1

14,6

11,7 12,1

10,2

6,9

15,0

12,1 12,4

10,6

6,8

0

2

4

6

8

10

12

14

16

15 yrs 10 yrs 5 yrs 3 yrs 1 yr

Annu

alis

ed R

etur

n (%

)

Investment Horizon

Annualised Returns of Portfolios with Different Weightings in Property

0% Property 5% Property 10% Property 15% Property

Source:BNPCadiz,September2016

13

➜ Demandforretailspaceinbiggershoppingcentres

➜ Increasedoffshoreexposure,portfolioandcurrencydiversification

➜ Corporateaction– mergersandtake-overs

➜ Risingbondyields➜ Globalmarketsvolatility➜ Increasingofficevacancies➜ Competitiveretaillandscape➜ Increasingoperatingcosts➜ Loweconomicgrowth

Upsid

eRisk

DownsideRisk

SAListedPropertyConclusion

THANKYOU

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