Trading Update CALGRO M3 HOLDINGS LIMITED (Incorporated in the Republic of South Africa) (Registration Number 2004/030045/06) Share code: CGR ISIN: ZAE000109203 (“Calgro M3” or “the company”) TRADING UPDATE In accordance with paragraph 3.4 of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as it becomes aware, with a reasonable degree of certainty, that the financial results for the next period to be reported on are likely to vary by more than 20% from the previous corresponding period. Calgro M3 wishes to advise shareholders that the company’s Headline earnings per share (“HEPS”) for the six months ending 31 August 2017, is expected to be 47.71 cents per share compared to 65.13 cents per share reported in the previous corresponding period. This equates to a decrease of 26.74%. Earnings per share (“EPS”) for the six months ending 31 August 2017, is expected to be 47.71 cents per share compared to 65.11 cents per share as reported in the previous corresponding period. This equates to a decrease of 26.72%. The Group’s profit after tax was impacted by the construction of units for the AFHCO Calgro M3 Consortium (Pty) Ltd (REIT JV), in which Calgro M3 has a 49% shareholding. The Group’s shareholding in the REIT JV has resulted in 49% of the development profit (construction and other services) being eliminated on consolidation as an unrealised profit, as prescribed by International Financial Reporting Standards (IFRS). This unrealised profit is carried on the balance sheet until it realises in future financial years, once the units are completed, tenanted and the portfolio has been revalued. The impact of this unrealised profit is substantial to the financial performance and has necessitated the Group to institute new metrics to measure operational performance between reporting periods, as well as to give all stakeholders an indication of the Group’s performance that is consistent between periods. The below two metrics are described as follows: Core Earnings per share (“Core EPS”) – Earnings per share before elimination of unrealised profits from development of units for the REIT JV Core Headline Earnings per share (“Core HEPS”) – Headline Earnings per share before elimination of unrealised profits from development of units for the REIT JV Core earnings per share (“Core EPS”), is expected to be 77.1 cents per share compared to 65.11 cents per share in the previous corresponding period. This equates to an increase of 18.42%. Core headline earnings per share (“Core HEPS”) is expected to be 77.1 cents per share compared to 65.13 cents per share in the previous corresponding period. This equates to an increase of 18.38%. The Memorial Parks business is showing pleasing results and an update on the continued construction in the Western Cape will be detailed in the interim results commentary. The financial information on which this trading statement is based has not been reviewed or reported on by the company’s auditors. The interim results for the 6 months ended 31 August 2017 are expected to be released during the week of 16 October 2017. Johannesburg 9 October 2017 Sponsor Grindrod Bank Limited Date: 09/10/2017 01:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.