HOSPITALITY PROPERTY FUND LIMITED - Trading statement

Trading statement

HOSPITALITY PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/014211/06)
JSE share code: HPB
ISIN ZAE000214656
(Approved as a REIT by the JSE)
(“Hospitality” or “the Company” or the “Fund”)

TRADING STATEMENT

In terms of the Listings Requirements of the JSE Limited, property entities are required to publish a trading
statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for
the next period to be reported on, will differ by at least 15% from that of the previous corresponding period.
Given the nature of its business, Hospitality uses distribution per share as its key performance measure.

The distribution per share for the previous corresponding period, being the six months ended 31 December
2016 (the “previous corresponding period”), was 56.09 cents per ordinary share (excluding a clean out
dividend paid to A share unit holders of 9.29 cents, in the old capital structure).

The distribution for the six months ended 30 September 2017 (the “current period”) is not comparable to the
previous corresponding period due to the following factors:

     -   The change in Hospitality’s year end from June to March in order to align the Fund’s financial
         reporting period with that of its majority shareholder, Tsogo Sun Holdings Limited. This has resulted
         in a change in the impact of the seasonal variability on the interim distribution period of 6 months to
         December compared to 6 months to September, of which, the latter includes the full winter period in
         the Western Cape.
     -   The restructure of the Company’s dual-class share capital structure into a single-class share capital
         structure with effect from 31 August 2016.
     -   The acquisition on 1 September 2016 of 10 properties from Southern Sun Hotels Proprietary Limited,
         in consideration for which on 11 October 2016, the Fund issued 145 000 000 no par value ordinary
         shares in the new capital structure, to the value of R2.7 million.
     -   The acquisition on 1 July 2017, of a further 29 properties from Southern Sun Hotels Proprietary
         Limited for R3.6 billion, settled by way of the issue of 174 064 861 ordinary shares, and R1.03 billion
         in cash.
     -   The acquisition of sections and exclusive use areas in the Sandton Eye sectional title scheme, together
         with the acquisition of a real right to extend the existing scheme by some 10 000 m2, settled by way of
         the issue of 2 150 856 ordinary shares and R271.4 million in cash.
     -   The implementation of a R1.0 billion fully subscribed rights offer to support the funding of the above
         acquisitions.

A gross clean-out dividend payment number 24 of 14.74 cents per ordinary share was declared for the two
months ended 31 May 2017. Dividend payment number 25 will be declared by the board of directors (“the
Board”) on 22 November 2017 for the four months ended 30 September 2017.

In these circumstances, the Board believes it to be appropriate to provide shareholders with guidance on the
total expected distribution for the six months ended 30 September 2017, being between 39 and 45 cents per
ordinary share. The total expected distribution includes the clean-out dividend of 14.74 cents per ordinary
share, which was paid to shareholders on 10 July 2017.

On a like-for-like basis to September, the distribution for the current period would have increased by between
31% and 37% when compared to the six months ended 30 September 2016. This is based on management
accounts for the six months ended 30 September 2016, that have not been reviewed or reported on by
Hospitality’s auditors.

The forecast financial information on which this trading statement is based has not been reviewed or reported
on by the Company’s auditors. The financial results for the six months ended 30 September 2017 will be
published on or about 22 November 2017.

9 November 2017

Sponsor
Java Capital

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