ARROWHEAD PROPERTIES LIMITED - Vividend Financial Effects

Vividend Financial Effects

ARROWHEAD PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2011/000308/06)
JSE share code: AWA ISIN: ZAE000158101
JSE share code: AWB ISIN: ZAE000158119
(Approved as a REIT by the JSE)
(“Arrowhead”)


VIVIDEND FINANCIAL EFFECTS


INTRODUCTION

Linked unitholders are referred to the announcement released on SENS on 6 December 2013 in respect of the acquisition by
Arrowhead of a 31.7% stake in Vividend Income Fund Limited (“Vividend”) (“the acquisition”).

UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITION

The table below sets out the unaudited pro forma financial effects of the acquisition based on Arrowhead’s audited results for the year
ended 30 September 2013. These financial effects are the responsibility of the directors of Arrowhead and have been prepared for
illustrative purposes only, in order to provide information about the results and financial position of Arrowhead assuming that the
acquisition had been implemented on 1 October 2012 for purposes of the statement of comprehensive income and on 30 September
2013 for purposes of the statement of financial position.

The effects of the acquisition on Arrowhead’s net asset value and net tangible asset value per A and B linked unit, headline and
diluted headline earnings per A and B linked unit and distribution per A-linked unit are not significant (less than 3%) and therefore
have not been disclosed.

The table below reflects the unaudited pro forma financial effects of the acquisition on an Arrowhead unitholder holding either 
an A or B linked unit:

                                                                        30 September           Pro forma after
                                                                                2013      Vividend acquisition               % change
 Basic and diluted earnings per A-linked unit                                 145.17                    140.24                  -3.4%
 Basic and diluted earnings per B-linked unit                                 138.02                    127.72                  -7.5%
 Distribution per B-linked unit                                                53.01                     55.93                   5.5%

Notes:

1.       Due to their nature, the unaudited pro forma financial effects may not fairly present Arrowhead’s financial position, changes in
         equity, results of operations and cash flows subsequent to the acquisition.

2.       The unaudited pro forma financial effects have been prepared in accordance with the accounting policies of Arrowhead that
         were used in the preparation of the audited results for the year ended 30 September 2013.

3.       Given the nature of Arrowhead’s linked unit capital structure, the company considers the impact of the acquisition on earnings
         per share figures as an inappropriate measure in assessing the impact of the acquisition but is however required to disclose this
         information in terms of the JSE Listings Requirements.

4.       The unaudited pro forma financial effects have not been reviewed or reported on by Arrowhead’s auditors.

CAUTIONARY

Although the financial effects of the acquisition have now been published, unitholders are referred to the announcements released on
SENS on 9 December 2013 (in respect of the acquisition of a property letting enterprise and its related immovable properties from
The Standard Bank of South Africa Limited) and on 13 December 2013 (in respect of the acquisition of a property from the Sasol
Pension Fund) and are advised that the financial effects of these acquisitions are still in the process of being finalised.

Accordingly, linked unitholders are advised to continue to exercise caution when dealing in their Arrowhead linked units until further
announcements are made.

23 January 2014


Corporate advisor, legal advisor and sponsor

Java Capital


Date: 23/01/2014 05:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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