EQUITES PROPERTY FUND LIMITED - Trading statement and operational update

Trading statement and operational update

EQUITES PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/080877/06)
JSE share code: EQU  ISIN: ZAE000188843
(Approved as a REIT by the JSE)
(“Equites” or “the Company”)


TRADING STATEMENT AND OPERATIONAL UPDATE



HIGHLIGHTS

    -    Distribution per share for the 6 months ended 31 August 2016 is expected to be between 16.7% and 20.0% higher than
         corresponding financial period.

    -    Fair value of property and land portfolio exceeds R5.3 billion at 31 August 2016.

    -    Portfolio acquisition of eight A-Grade properties in Waterfall City, Midrand concluded.

    -    Acquisition of the Company’s first property outside South Africa, a Tesco Distribution facility in Hinckley, United
         Kingdom.

TRADING STATEMENT

In terms of paragraph 3.4(b)(vi) of the JSE Listings Requirements, Equites has adopted distribution per share as its financial results
measurement for trading statement purposes. The JSE Listings Requirements require the Company to publish a trading statement as
soon as it is satisfied that a reasonable degree of certainty exists that the distribution per listed share will differ by at least 15% from
the distribution for the previous corresponding financial period.

Accordingly, shareholders are advised that Equites anticipates that the distribution per share for the six months ended 31 August 2016
will be between 53.0 cents per share and 54.5 cents per share, being between 16.7% and 20.0% higher than the 45.42 cents per share
reported in the interim results for the six months ended 31 August 2015.

The growth in distribution was positively impacted by:

    -    The inclusion for the full 6 month period of acquisitions and developments that were completed during the prior year;

    -    Savings in finance costs following the R1.5 billion accelerated book build in November 2015;

    -    Nominal increases in administrative costs, despite a large increase in the portfolio size; and

    -    The acquisition of a property in the United Kingdom (a distribution centre let to Tesco Distribution Limited), at an accretive
         yield.


The financial results on which this trading statement is based have not been reviewed or reported on by Equites’ auditors. The
financial results for the 6 months ended 31 August 2016 will be published on or about
13 October 2016.


SUMMARY OF MATERIAL TRANSACTIONS SINCE LAST PUBLISHED RESULTS

Equites/Attacq Joint Venture and acquisition of an interest in a portfolio of properties

As announced on SENS on 20 May 2016, Equites Limited and Attacq Limited (“Attacq”) (through its wholly owned subsidiary
Attacq Waterfall Investment Company Proprietary Limited (“AWIC”)) agreed to establish a joint venture in respect of a portfolio of
industrial properties at Waterfall, Midrand which came into effect on 1 July 2016. Equites subscribed for 80% shareholding in an SPV
that owns the portfolio of properties, and Attacq subscribed for the remaining 20% shareholding.

This transaction has added 8 properties (valued at R728 million) of recently completed, high profile industrial properties to the
Company’s portfolio. The portfolio is predominantly tenanted by multinational/listed companies and on the effective date the
weighted average lease expiry date was 8.4 years.

Expansion into the United Kingdom and acquisition of Tesco Distribution Centre

As announced on SENS on 27 May 2016, Equites, through its Isle of Man based wholly-owned subsidiary, Equites International
Limited, concluded the acquisition of a distribution centre in Hinckley, England let to Tesco Distribution Limited for a purchase
consideration of £28 million in cash. The transfer of this property was completed on 9 June 2016 and income has accrued to Equites
from that date.

New Epping facility let

Towards the end of 2015, Equites commenced a speculative development at 160 Gunners Circle, Epping, Cape Town. This modern
8,000m2 cross-docking distribution centre was completed in August 2016 and was let to an international tenant prior to completion
with the first rental due in October 2016.

27 September 2016



Sponsor
Java Capital

Date: 27/09/2016 10:09:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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