HOSPITALITY PROPERTY FUND LIMITED - Upgrade of Hospitalitys national scale issuer ratings

Upgrade of Hospitality’s national scale issuer ratings

HOSPITALITY PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/014211/06)
Share code of B shares: HPB
ISIN for B shares: ZAE ZAE000214656
(Approved as a REIT by the JSE)
(“Hospitality”)

UPGRADE OF HOSPITALITY’S NATIONAL SCALE ISSUER RATINGS

Hospitality would like to advise all its Shareholders that on 18 October 2016 Global Credit Ratings
(“GCR”) upgraded the national scale issuer ratings assigned to Hospitality to BBB+(za) and A2(za) in
the long term and short term respectively.

The outlook on the rating is accorded as Stable, recognising the strengthening of Hospitality’s credit
profile, as well as the increased portfolio scale following the recent concluded transaction with Tsogo
Sun Holdings Limited (“Tsogo”). The transaction brought on 10 established properties, raising the
value of Hospitality’s consolidated property investments from R5.3 billion FYE16 to an estimated R7.1
billion as well as the resultant potential pipeline of future acquisition opportunities.

At FYE16, Hospitality’s LTV ratio was reported at a conservative 33%. With the Tsogo transaction
being ungeared, GCR expects that Hospitality’s leverage will fall to the lower end of its targeted
range of 25%-35% over the intermediate term unless major acquisitions materialise. Other key credit
metrics, such as interest coverage and earnings based gearing are expected to remain at stronger
levels due to moderate debt increases and cash flow growth.

The full GCR rating report on Hospitality is available online at
http://www.hpf.co.za/downloads/GCROct16.pdf

Johannesburg
19 October 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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