ATTACQ LIMITED - Condensed unaudited consolidated interim financial results for the six months ended 31 December 2017

Release Date: 27/02/2018 07:05
Code(s): ATT
 
Wrap Text
Condensed unaudited consolidated interim financial results for the six months ended 31 December 2017

Attacq Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/000543/06)
JSE share code: ATT ISIN: ZAE000177218
("Attacq" or "the Company")

CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS
for the six months ended 31 December 2017

Condensed consolidated statement of financial position

                                                                                                          Unaudited       Unaudited        Audited
                                                                                                        31 December     31 December        30 June
                                                                                                               2017            2016           2017
                                                                                                              R'000           R'000          R'000
ASSETS                                                
Non-current assets                                                
Property and equipment                                                                                       47 130          48 078         52 272
Investment properties                                                                                    20 323 153      18 880 950     19 735 365
  Per valuation                                                                                          21 165 270      19 600 881     20 536 861
  Straight-line lease debtor                                                                              (842 117)       (719 931)      (801 496)
Straight-line lease debtor                                                                                  842 117         719 931        801 496
Deferred initial lease expenditure                                                                            7 079           8 327          7 666
Intangible assets                                                                                           276 894         302 617        290 539
Goodwill                                                                                                     67 774          67 774         67 774
Investment in associates and joint ventures                                                               3 179 281       3 524 896      3 153 392
Other financial assets                                                                                      361 280         253 163        304 368
Other investments                                                                                            12 456         191 866         11 941
Deferred tax assets                                                                                              11          16 562          3 329
Total non-current assets                                                                                 25 117 175      24 014 164     24 428 142
Current assets                                                
Taxation receivable                                                                                               –           2 529            951
Trade and other receivables                                                                                 183 124         221 154        174 623
Deferred initial lease expenditure                                                                                –             606              –
Inventory                                                                                                    34 592               –         25 278
Loans to associates and joint ventures                                                                    1 070 696       1 755 028      1 250 278
Other financial assets                                                                                      140 431         186 824        193 590
Cash and cash equivalents                                                                                   725 244         211 554        447 846
Total current assets                                                                                      2 154 087       2 377 695      2 092 566
Non-current assets held for sale                                                                            892 970         733 498        801 483
Total assets                                                                                             28 164 232      27 125 357     27 322 191
EQUITY AND LIABILITIES                                                
Equity                                                
Stated capital                                                                                            6 458 912       6 454 839      6 456 633
Distributable reserves                                                                                    7 215 581       5 964 563      6 945 483
Available-for-sale reserve                                                                                  286 152         781 464        282 329
Share-based payment reserve                                                                                 107 738         114 938        128 216
Foreign currency translation reserve                                                                        487 954         (7 722)        238 254
Acquisition of non-controlling interests reserve                                                          (104 215)       (116 483)      (104 215)
Equity attributable to owners of the holding company                                                     14 452 122      13 191 599     13 946 700
Non-controlling interests                                                                                  (66 057)        (16 673)       (43 087)
Total equity                                                                                             14 386 065      13 174 926     13 903 613

                                                                                                            Unaudited      Unaudited       Audited
                                                                                                          31 December    31 December       30 June
                                                                                                                 2017           2016          2017
                                                                                                                R'000          R'000         R'000
Non-current liabilities                                  
Long-term borrowings                                                                                        10 372 429    10 787 800     7 976 110
Deferred tax liabilities                                                                                     2 079 216     1 829 870     1 932 140
Other financial liabilities                                                                                    214 106        65 260       164 696
Cash-settled share-based payments                                                                                  872         1 268         1 496
Finance lease obligation                                                                                        85 983        80 401        83 150
Total non-current liabilities                                                                               12 752 606    12 764 599    10 157 592
Current liabilities                                   
Other financial liabilities                                                                                    158 002       121 128       137 145
Loans from associates                                                                                                –         4 150             –
Taxation payable                                                                                                16 195         9 458         7 665
Cash-settled share-based payments                                                                                1 873         1 589         1 684
Trade and other payables                                                                                       301 382       393 073       501 380
Provisions                                                                                                       2 645         2 888         2 777
Short-term portion of long-term borrowings                                                                     214 888       304 647     2 279 802
Total current liabilities                                                                                      694 985       836 933     2 930 453
Liabilities directly associated with non-current assets held for sale                                          330 576       348 899       330 533
Total liabilities                                                                                           13 778 167    13 950 431    13 418 578
Total equity and liabilities                                                                                28 164 232    27 125 357    27 322 191
The following information does not form part of the statement                                  
of financial position                                  
Net asset value per share (cents)                                                                                2 056         1 877         1 984
Net asset value per share adjusted for deferred tax (cents)                                                      2 351         2 135         2 259

Condensed consolidated statement of comprehensive income

                                                                                                            Unaudited       Unaudited      Audited
                                                                                                          31 December     31 December      30 June
                                                                                                                 2017            2016         2017
                                                                                                                R'000           R'000        R'000
Gross revenue                                                                                               1 001 983       1 037 305    2 060 895
  Rental income                                                                                               980 055         916 718    1 861 093
  Straight-line lease income adjustment                                                                        21 928         120 587      199 802
Property expenses                                                                                           (348 163)       (368 757)    (742 277)
Net rental income                                                                                             653 820         668 548    1 318 618
Other income                                                                                                   38 445          34 411       60 463
Operating and other expenses                                                                                (142 511)       (531 509)    (585 730)
Operating profit                                                                                              549 754         171 450      793 351
Amortisation of intangible asset                                                                             (13 645)         (9 982)     (22 060)
Fair value adjustments                                                                                        213 406         246 957      527 581
  Investment properties                                                                                       252 882         274 130      664 525
  Other financial assets and liabilities                                                                     (39 476)        (28 524)    (136 944)
  Other investments                                                                                                 –           1 351            –
Net income from associates and joint ventures                                                                  38 020          45 223      249 880
Investment income                                                                                              82 830         106 775      189 536
Finance costs                                                                                               (456 060)       (495 526)    (987 411)
Profit before taxation                                                                                        414 305          64 897      750 877
Income tax expense                                                                                          (173 170)           4 681    (150 599)
Profit for the period/year                                                                                    241 135          69 578      600 278
Attributable to:                                  
  Owners of the holding company                                                                               264 105          73 050      630 164
  Non-controlling interests                                                                                  (22 970)         (3 472)     (29 886)
Other comprehensive income (loss)                                  
Items that will be reclassified subsequently to profit and loss                                  
Gain (loss) on available-for-sale financial assets                                                              3 822        (79 785)    (117 827)
Taxation relating to components of other comprehensive income                                                       1          13 750     (11 269)
Other comprehensive income (loss) for the period/year net of taxation                                           3 823        (66 035)    (129 096)
Total comprehensive income for the period/year                                                                244 958           3 543      471 182
Attributable to:                                  
  Owners of the holding company                                                                               267 928           7 015      501 068
  Non-controlling interests                                                                                  (22 970)         (3 472)     (29 886)
Earnings per share                                  
Basic (cents)                                                                                                    37.6            10.4         89.7
Diluted (cents)                                                                                                  37.3            10.3         89.0

Reconciliation between earnings, headline earnings
and distributable earnings
                                                                                                         Unaudited       Unaudited         Audited
                                                                                                       31 December     31 December         30 June
                                                                                                              2017            2016            2017
                                                                                                             R'000           R'000           R'000
Profit for the period/year                                                                                 264 105          73 050         630 164
Headline earnings adjustments                                                                            (206 079)        (33 640)       (468 558)
    Profit on disposal of associates                                                                             –           (190)        (35 695)
    Profit on disposal of investment property                                                              (9 912)        (25 282)        (15 217)
    Impairment of associates and other investments                                                           6 435         268 850         244 540
    Fair value adjustments                                                                               (213 406)       (246 957)       (527 581)
    Net income from associates and joint ventures                                                         (38 020)        (45 223)       (249 880)
    Tax effect on adjustments                                                                               53 248           9 335         123 110
    Non-controlling interests' share                                                                       (4 424)           5 827         (7 835)
Headline earnings                                                                                           58 026          39 410         161 606
Distributable earnings adjustments#                                                                        215 468          73 844          44 815
    Straight-line lease income adjustments                                                                (20 644)       (115 605)       (187 668)
    Depreciation and amortisation                                                                           20 031          14 463          31 032
    Foreign currency translation effect                                                                     33 014         173 087         162 718
    Finance lease interest                                                                                   1 799           1 682           3 422
    Distributable earnings from associates                                                                  84 498          50 362         109 113
    Deferred taxation                                                                                       97 148        (49 795)          73 087
    Actual finance lease payments                                                                            (378)           (350)           (715)
Distributable earnings#                                                                                    273 494         113 254         206 421
Number of shares in issue*                                                                             703 055 224     702 665 224     702 815 224
Weighted average number of shares in issue*                                                            702 838 702     702 000 822     702 389 882
Diluted weighted average number of shares in issue*                                                    708 544 674     707 306 634     708 079 085
Headline earnings per share
    Basic (cents)                                                                                              8.3             5.6            23.0
    Diluted (cents)                                                                                            8.2             5.6            22.8
Distributable earnings per share#
    Basic (cents)                                                                                             38.9            16.1            29.4
    Diluted (cents)                                                                                           38.6            16.0            29.2

*Adjusted for 46 427 553 treasury shares (2016: 46 427 553)
(#)The distributable earnings and adjustments for 30 June 2017 were not audited

Condensed consolidated statement of cash flows

                                                                                                           Unaudited       Unaudited        Audited
                                                                                                         31 December     31 December        30 June
                                                                                                                2017            2016           2017
                                                                                                               R'000           R'000          R'000
Cash flow generated from operating activities                                                                 54 890          58 644        124 022
  Cash generated from operations                                                                             339 737         396 257      1 033 295
  Investment income                                                                                          106 605          34 436        119 368
  Finance costs                                                                                            (378 159)       (344 382)      (934 930)
  Taxation paid                                                                                             (13 293)        (27 667)       (93 711)
Cash flow (utilised in) generated from investing activities                                                (237 968)         136 607        310 427
  Property and equipment acquired                                                                              (640)        (18 632)       (27 319)
  Investment properties acquired                                                                           (455 870)       (616 319)    (1 098 009)
  Investment properties disposed                                                                                   –         756 197         50 017
  Associates and joint ventures acquired                                                                           –        (24 037)       (36 227)
  Associates and joint ventures disposed                                                                      23 620               –        744 845
  Other financial assets raised                                                                              (3 753)        (15 588)      (175 041)
  Additions to deferred initial lease adjustments                                                            (3 601)           (192)        (4 845)
  Cash flow relating to non-current assets held for sale                                                     202 276          55 178        857 006
Cash flow generated from (utilised in) financing activities                                                  460 476       (420 978)      (423 884)
  Capital raised                                                                                               2 279          12 034         13 828
  Long-term borrowings raised                                                                              1 848 047       1 797 518      2 355 304
  Long-term borrowings repaid                                                                            (1 496 779)     (1 989 902)    (3 254 770)
  Loans to associates and joint ventures repaid (advanced)                                                   135 484       (242 343)        468 643
  Loans from associates repaid                                                                                     –           1 270              –
  Payment of cash-settled share-based payments                                                                 2 236         (1 796)        (2 097)
  Other financial liabilities (repaid) raised                                                               (30 791)           2 241        (4 792)
Total cash movement for the period/year                                                                      277 398       (225 727)         10 565
Cash at the beginning of the period/year                                                                     447 846         437 281        437 281
Total cash at the end of the period/year                                                                     725 244          211 554       447 846

Condensed consolidated statement of changes in equity

                                                                                                Acquisition         Equity
                                                                                      Foreign       of non-   attributable
                                                        Available-   Share-based     currency   controlling   to owners of         Non-
                                 Stated  Distributable    for-sale       payment  translation     interests    the holding  controlling       Total
                                capital       reserves     reserve       reserve      reserve       reserve        company    interests      equity
                                  R'000          R'000       R'000         R'000        R'000         R'000          R'000        R'000       R'000
Audited balance
at 1 July 2016                6 442 805      5 891 513     847 499       100 453      318 734     (116 483)     13 484 521     (13 201)  13 471 320
Total comprehensive income            –         73 050    (66 035)             –            –             –          7 015      (3 472)       3 543
  Profit for the period               –         73 050           –             –            –             –         73 050      (3 472)      69 578
  Other comprehensive loss            –              –    (66 035)             –            –             –       (66 035)            –    (66 035)
Foreign currency translation
reserve                               –              –           –             –    (326 456)             –      (326 456)            –   (326 456)
Issue of shares                  12 034              –           –             –            –             –         12 034            –      12 034
Recognition of share-based
payment reserve                       –              –           –        14 485            –             –         14 485            –      14 485
Unaudited balance
at 31 December 2016           6 454 839      5 964 563     781 464       114 938      (7 722)     (116 483)     13 191 599     (16 673)  13 174 926
Total comprehensive income            –        557 114    (63 061)             –            –             –        494 053     (26 414)     467 639
  Profit for the period               –        557 114           –             –            –             –        557 114     (26 414)     530 700
  Other comprehensive loss            –              –    (63 061)             –            –             –       (63 061)            –    (63 061)
Foreign currency translation
reserve                               –              –           –             –      245 976             –        245 976            –     245 976
Issue of shares                   1 794              –           –             –            –             –          1 794            –       1 794
Derecognition reserves and
non-controlling interests due
to sale of subsidiaries               –        423 806   (436 074)             –            –        12 268              –            –           –
Recognition of share-based
payment reserve                       –              –           –        13 278            –             –         13 278            –      13 278
Audited balance
at 30 June 2017               6 456 633      6 945 483     282 329       128 216      238 254     (104 215)     13 946 700     (43 087)  13 903 613
Total comprehensive income            –        264 105       3 823             –            –             –        267 928     (22 970)     244 958
  Profit for the period               –        264 105           –             –            –             –        264 105     (22 970)     241 135
  Other comprehensiv
  income                              –              –       3 823             –            –             –          3 823            –       3 823
Foreign currency translatio
reserve                               –              –           –             –      249 700             –        249 700            –     249 700
Issue of shares                   2 279              –           –             –            –             –          2 279            –       2 279
Settlement of share-based
payment transaction                   –              –           –      (11 198)            –             –       (11 198)            –    (11 198)
Transfer between reserves             –          5 993           –      (15 304)            –             –        (9 311)            –     (9 311)
Recognition of share-based
payment reserve                       –              –           –         6 024            –             –          6 024            –       6 024
Unaudited balance at
31 December 2017              6 458 912      7 215 581     286 152       107 738      487 954     (104 215)     14 452 122     (66 057)  14 386 065
  
Condensed segmental analysis

                                                                                                               Unaudited
                                                                                                           31 December 2017
                                                                                                                Net      Investment      Net asset
                                                                                            Revenue   profit (loss)      properties          value
Business segment                                                                    Notes     R'000           R'000           R'000          R'000
Brooklyn Bridge Office Park                                                            1     21 494           4 655         541 973        216 158
Lynnwood Bridge – Offices                                                                   102 822          22 821         832 813        534 790
Aurecon Building                                                                           (21 386)          13 713         744 640        347 637
Newtown Nedbank                                                                              41 166           6 485         652 343         82 221
Majestic Offices                                                                              9 320           6 986         134 970        140 913
2 Eglin, Sunninghill                                                                         22 858        (47 956)         228 684      (133 117)
Waterfall – Altech Building*                                                           2          3           (152)               –            (1)
Waterfall – Cell C Campus                                                                    79 885          44 409         828 538        997 472
Waterfall – Group Five                                                                       37 877          26 788         609 439        339 376
Waterfall – Maxwell Office Park*                                                             30 763          10 291         527 239        414 629
Waterfall – Allandale                                                                        16 686           3 202         422 260        259 099
Waterfall – PWC Tower and Annex~                                                                  –          12 765       1 213 113        302 939
Waterfall – Gateway West                                                                          –         (2 887)         314 807        312 194
Waterfall – Corporate Campus Office Park*                                                         –           6 760          71 520         71 374
Waterfall – Novartis                                                                         13 539           3 387         218 380        229 078
Office and mixed-use                                                                        355 027         111 267       7 340 719      4 114 762
Glenfair Boulevard Shopping Centre                                                           22 395          12 338         472 520        265 552
Lynnwood Bridge Retail                                                                       24 967           8 936         353 247        209 222
Newtown Junction                                                                             34 413        (43 553)         580 660       (67 304)
Garden Route Mall                                                                            78 513          35 399       1 350 527        629 146
Brooklyn Mall(#)                                                                             40 361           2 393         736 215        343 160
MooiRivier Mall                                                                              61 857          20 192       1 157 439        535 274
Eikestad Mall^                                                                               50 975          21 065         868 521        297 895
Waterfall – Mall of Africa^                                                                 228 545          88 143       4 247 185      1 917 015
Waterfall – Waterfall Corner                                                                 15 418          10 918         218 585        227 494
Waterfall – Waterfall Lifestyle                                                              10 643           2 493         118 101        133 757
Retail                                                                                      568 087         158 324      10 103 000      4 491 211
Waterfall – Massbuild                                                                         8 634           8 473         340 587        176 378
Waterfall – Torre                                                                             9 305           2 357         128 856         80 806
Waterfall – Dimension Data                                                                    5 478           3 604          89 861         32 883
Waterfall – Amrod                                                                            26 974           6 438         371 852        231 495
Waterfall – BMW Group South Africa Regional                                 
            Distribution Centre                                                                   –        (15 071)         275 755        266 700
Waterfall – K101 warehouse                                                                        –           6 888          79 256         17 205
Light industrial                                                                             50 391          12 689       1 286 167        805 467

Notes:
1. Held for sale at 31 December 2017.
2. Sold during the prior year.
Represents Attacq's co-ownership: #25%; *50%; ~75%; ^80%;

                                                  Unaudited                                                    Audited
                                             31 December 2016                                               30 June 2017
                                                    Net    Investment       Net asset                          Net      Investment      Net asset
                               Revenue    profit (loss)    properties           value     Revenue    profit (loss)      properties          value
                                 R'000            R'000         R'000           R'000       R'000            R'000           R'000          R'000
                                36 757            9 912       615 657         311 606      79 533         (53 539)         525 735        219 475
                                54 673           20 097       846 436         484 809     112 685           47 979         859 473        499 341
                                49 641           17 780       671 575         308 577      99 187           30 836         673 537        323 998
                                40 403           12 768       637 210         117 842      80 955           23 285         645 869        110 873
                                 9 592            1 175       134 108          31 191      19 460            9 217         132 940         30 057
                                22 797         (66 702)       287 903        (96 413)      45 861         (56 121)         289 735       (89 150)
                                 3 228            1 524        44 746          31 957       1 097            3 617               –              –
                                65 388            8 273       776 582         450 938     127 477           71 078         831 089        968 462
                                36 923           17 241       573 317         264 713      77 940           48 068         595 727        307 999
                                29 109           17 334       510 455         279 664      59 250           32 420         525 062        309 287
                                 9 945           21 594       384 201         163 767      27 696           42 937         414 839        180 544
                                     –                –             –               –           –                –               –              –
                                     –                –             –               –           –                –               –              –
                                     –                –             –               –           –                –               –              –
                                13 847            3 766       212 770          95 583      28 199           10 779         220 259        103 109
                               372 303           64 762     5 694 960       2 444 234     759 340          210 556       5 714 265      2 963 995
                                27 651           17 923       436 698         239 378      58 124           32 851         455 501        259 152
                                24 376           11 270       335 495         193 897      47 453            8 212         346 552        200 051
                                37 236          (8 046)       643 160          41 914      81 525         (46 696)         601 929         20 060
                                76 469           28 127     1 296 907         556 071     152 651           48 329       1 318 172        641 973
                                39 154           15 127       764 288         344 023      77 300         (10 903)         736 390        347 850
                                61 188           11 356     1 122 667         470 696     122 731           15 284       1 128 318        526 456
                                57 694           17 787       824 330         356 858     109 939           31 157         838 609        415 054
                               231 632          104 676     3 844 967       2 337 610     444 953          327 184       4 138 982      2 737 350
                                17 273          (5 947)       200 205          69 830      30 378          (1 126)         212 747        217 483
                                11 962            3 571       118 119          47 209      21 143            5 772         119 183         49 634
                               584 635          195 844     9 586 836       4 657 486   1 146 197          410 064       9 896 383      5 415 063
                                19 644            5 476       258 608          93 891      39 010           21 817         283 776        117 382
                                 5 249           15 601       123 666          49 416      13 139           21 477         129 905         59 099
                                 3 737           11 908        83 578          24 789       9 258           14 255          85 581         27 917
                                     –              255       340 902         201 562      26 143           36 029         370 869        100 136
                                     –                –             –               –           –                –               –              –
                                     –                –             –               –           –                –               –              –
                                28 630           33 240       806 754         369 658      87 550           93 578         870 131        304 534

                                                                                                             Unaudited
                                                                                                         31 December 2017
                                                                                                               Net       Investment     Net asset
                                                                                           Revenue   profit (loss)       properties         value
Business segment                                                                 Notes       R'000           R'000            R'000         R'000
Newtown Junction – City Lodge                                                                7 273           3 512          112 398        28 817
Lynnwood Bridge – City Lodge                                                                10 983           9 741          201 725       118 029
Waterfall – City Lodge                                                                       7 041           4 528          107 318       112 255
Hotel                                                                                       25 297          17 781          421 441       259 101
Le Chateau                                                                                       –             (2)            5 000         2 752
Waterfall – Development rights                                                      3            –        (19 135)          961 511       961 511
Waterfall – Infrastructure and services                                             3            –         (1 163)          664 343       662 123
Vacant land                                                                                      –        (20 300)        1 630 854     1 626 386
Waterfall – PwC Tower and Annex~                                                                 –               –                –             –
Waterfall – Gateway West                                                                         –               –                –             –
Waterfall – K101 warehouse                                                                       –               –                –             –
Waterfall – BMW Group South Africa Regional                                
          - Distribution Centre                                                                  –               –                –             –
Waterfall – Waterfall Point Office Park                                                          –               –                –        27 726
Waterfall – Corporate Campus Office Park*                                                        –               –                –             –
Waterfall – Pirtek                                                                               –               –                –         6 866
Waterfall – Cummins SA's Regional Office*                                                        –             807           75 034        57 569
Waterfall – River Creek (Deloitte head office)                                                   –           (171)          160 893       169 404
Developments under construction                                                                  –             636          235 927       261 565
MAS Real Estate Inc.                                                                             –          38 281                –     2 950 461
Atterbury Cyprus Limited                                                            2            –               –                –             –
Atterbury Africa Limited                                                                         –             872                –     (150 054)
Stenham European Shopping Centre Fund                                
Limited                                                                                          –               –                –         2 714
Atterbury Serbia B.V.                                                               2            –               –                –             –
Gruppo Investment Nigeria Limited                                                                –           (484)                –        10 123
Grove Mall of Namibia Proprietary Limited                                                        –           1 447                –       185 950
Other international                                                                              –           9 759                –       199 838
International                                                                                    –          49 875                –     3 199 032
Head office/other                                                                            3 181        (85 314)                –     (371 459)
Total                                                                                    1 001 983         244 958       21 018 108    14 386 065
 
Notes:
2. Sold during the prior year
3. Portion held for sale at 31 December 2017
Represents Attacq's co-ownership: *50%; ~75%

                                                      Unaudited                                                     Audited
                                                 31 December 2016                                                30 June 2017
                                                       Net     Investment    Net asset                            Net    Investment     Net asset
                                    Revenue  profit (loss)     properties        value         Revenue  profit (loss)    properties         value
                                      R'000          R'000          R'000        R'000           R'000          R'000         R'000         R'000
                                      7 126          1 651        110 568       24 236          14 195          3 411       110 701        26 298
                                     28 823         10 045        169 173      104 914          24 560         13 737       191 466       111 887
                                      6 785          5 697         99 983       52 983          13 935         11 182       105 073        58 817
                                     42 734         17 393        379 724      182 133          52 690         28 330       407 240       197 002
                                          –            (1)          5 000        2 753               –            (4)         5 000         2 752
                                          –         23 562      1 059 720    1 059 724               –       (50 862)     1 081 968     1 081 968
                                          –        (5 427)      1 100 556      804 287               –        (7 229)       737 172       713 619
                                          –         18 134      2 165 276    1 866 764               –       (58 095)     1 824 140     1 798 339
                                          –         21 952        705 873      175 063               –         28 562     1 027 098       236 553
                                          –          6 874        183 183      183 183               –          4 348       291 787       275 073
                                          –            660         18 747       18 747               –          7 443        45 609        23 576
                                   
                                          –              –              –            –               –         13 709       206 448       178 568
                                          –              –              –            –               –          (143)             –        25 278
                                          –              –              –            –               –          2 756        28 024        20 481
                                          –              –              –            –               –              –             –             –
                                          –              –              –            –               –              –             –             –
                                          –              –              –            –               –              –             –             –
                                          –         29 486        907 803      376 993               –         56 675     1 598 966       759 529
                                          –       (11 916)              –    2 377 696               –        106 014             –     2 729 308
                                          –         39 379              –      802 842               –         32 866             –             –
                                          –      (180 096)              –     (21 465)               –      (104 971)             –     (121 169)
                                          –      (155 617)              –      180 568               –      (142 104)             –       197 677
                                          –       (41 966)              –      171 231               –          8 383             –             –
                                          –       (21 324)              –      292 495               –       (26 491)             –        86 976
                                          –          8 378              –      173 845               –         16 324             –       184 085
                                          –        (6 350)              –      155 170               –       (32 502)             –       143 889
                                          –      (369 512)              –    4 132 382               –      (142 481)             –     3 220 766
                                      9 003         14 196              –    (854 724)          15 118      (127 445)             –     (755 615)
                                  1 037 305          3 543     19 541 353   13 174 926       2 060 895        471 182    20 311 125    13 903 613

Commentary

Highlights
-   Year-on-year growth in net asset value per share ("NAVPS"), adjusted for deferred tax, of 10.1% to R23.51;
-   Distributable earnings per share of 38.9 cents achieved during the last six months;
-   Mall of Africa's trading densities increased December on December by 10.7%;
-   Waterfall developments completed adding 114 916 m(2); and
-   Gearing ratio improved from 41.4% to 36.2% year-on-year.

Introduction
Attacq's vision is to be the premier property company in South Africa with the Waterfall development portfolio as its unique value
proposition. Attacq's business model is focused on four key value drivers, namely the South African portfolio, an investment in
MAS Real Estate Inc. ("MAS"), the Waterfall development portfolio and the Rest of Africa retail investments.

Attacq's focus is on delivering both sustainable income distributions and capital growth, through its four key value drivers.

The Real Estate Investment Trust ("REIT") conversion, subject to JSE approval, is anticipated to be in place for the next
financial year.

Performance
NAVPS adjusted for deferred tax increased by 10.1% year-on-year from R21.35 to R23.51, and NAVPS increased by 9.5% from
R18.77 to R20.56.

Attacq's distributable earnings per share for the interim reporting period is 38.9 cents (December 2016: 16.1 cents) which is on
track with the communicated guideline for the current financial year.

Financial position
Attacq's assets have increased over the last six months by 3.1% to R28.2 billion.

                                                                            31 December 2017    31 December 2016    30 June 2017
                                                                                       R'000               R'000           R'000
South African portfolio                                                           20 618 521          17 572 130      18 060 726
Investment in MAS                                                                  2 950 461           2 377 696       2 729 308
Waterfall development portfolio                                                    2 057 292           3 368 149       3 840 759
Rest of Africa retail investments                                                  1 137 905           1 257 890       1 246 835
Other assets                                                                       1 400 553           2 549 492       1 444 563
Total                                                                             28 164 232          27 125 357      27 322 191

South African portfolio
Overview
Attacq has a high-quality operational portfolio of retail, commercial and industrial properties with a weighted average lease expiry
profile of 6.7 years as at 31 December 2017 (June 2017: 6.4 years). The value of the existing South African portfolio increased to
R20.6 billion (June 2017: R18.1 billion), comprising 73.2% (June 2017: 66.1%) of Attacq's total gross assets.

During the six months ended 31 December 2017 five buildings and one extension were completed in Waterfall. Attacq's
attributable share of the total newly completed 114 916 m(2) primary gross lettable area ("PGLA") is 100 676 m(2):

                                                                                         Practical           PGLA     Occupancy
Property                                                                Sector     completion date           (m(2))             %
Waterfall City
PwC Tower and Annex~                                                    Office        October 2017         45 223           100
Gateway West                                                            Office        October 2017         13 481           >70
Corporate Campus Office Park Phase 1+                                   Office       December 2017          5 868           >94
Waterfall Logistics Hub
BMW Group South Africa Regional Distribution Centre                 Industrial       December 2017         31 987           100
K101 warehouse                                                      Industrial        October 2017          8 518             –
Massbuild extension                                                 Industrial       December 2017          9 839           100
Total                                                                                                     114 916           >89
~ Attacq has a 75.0% co-ownership
+ Attacq has a 50.0% co-ownership

Net rental income
Rental income increased by 6.9% to R980.1 million compared with the prior comparative period (December 2016: R916.7 million).
Net rental income, decreased by 2.2% compared with December 2016, negatively impacted by straight-line lease adjustments. 
Developments completed during the past six months, added 100 676 m(2) of PGLA, bringing the total PGLA to 807 467 m(2). 
Rental income will be positively impacted for the balance of the financial year as a result of the commencement of
new leases for the five completed buildings and the one extension.

Vacancies
Overall portfolio vacancies, measured in terms of PGLA, increased by 18 130 m(2) when compared with 31 December 2016.
Subsequent to 31 December 2017, 10 744 m(2) of this vacant space was let, reducing the overall vacancy rate to 3.2%. Vacancies
that were filled post 31 December 2017 relate mainly to Gateway West (9 403 m(2)) and Corporate Campus Office Park ("Corporate
Campus") (947 m(2)).

                                                            31 December 2017        31 December 2016            30 June 2017
                                                          Vacancy      Vacant     Vacancy       Vacant     Vacancy        Vacant
Sector                                                          %   PGLA m(2)           %    PGLA m(2)           %     PGLA m(2)
Retail                                                        1.5       5 083         1.5        4 729         2.4         7 869
Office and mixed-use                                          7.6      22 642         5.2       13 384         5.0        13 094
Light industrial                                              5.3       8 518           –            –           –             –
Hotel                                                           –           –           –            –           –             –
Portfolio vacancy                                             4.5      36 243         2.6       18 113         3.0        20 963

Property expenses
Property expenses decreased by 5.6% or R20.6 million to R348.2 million mainly due to non-recurring spend incurred in the
prior period relating to the opening of the Mall of Africa. Municipal charges of R221.3 million (December 2016: R218.1 million) are
included in property expenses. The cost-to-income ratio on a gross basis improved to 35.5% (December 2016: 40.2%) and 17.7%
(December 2016: 19.3%) on a net basis.


Investment in MAS
Overview
Attacq's shareholding in MAS reduced from 30.6% as at 30 June 2017 to 22.7% as at 31 December 2017. This was as a result of two
large capital raisings by MAS in which Attacq did not participate due to deploying surplus cash into the Waterfall development.
The market value of Attacq's investment, using the 31 December 2017 MAS share price of R30.00 (June 2017: R23.50) equates to
R4.4 billion (June 2017: R3.5 billion). During the six-month period ended 31 December 2017, Attacq received a cash dividend of
R74.2 million (December 2016: R54.9 million), which represents a 3.4% annualised income return, based on the 31 December 2017
market value.

Attacq's equity accounted investment at 31 December 2017 is R2.9 billion (June 2017: R2.7 billion). The increase is due to MAS'
NAVPS increasing by 9.7% from 124.5 Euro cents per share to 136.6 Euro cents per share (after adjusting for treasury shares),
offset by the 1.4% strengthening of the Rand against the Euro and the dividend of 3.19 Euro cents per share.

MAS' acquisition pipeline of income-producing assets, covering Western Europe and Central and Eastern Europe ("CEE"), totals
EUR175.0 million. The secured Prime Kapital development pipeline in CEE totals EUR495.0 million and includes major extensions of its
malls in Bulgaria and Poland and the development of sizeable new retail assets in Romania.

MAS' strong balance sheet, as well as its ability to recycle capital from mature assets, positions it well to deliver on its strong
acquisition and development pipelines and drive distribution growth.


Waterfall development portfolio
Overview
Waterfall's location and ease of access creates an attractive value proposition for the continued development of a new city
and logistics hub in the centre of Gauteng. Attacq has 975 468 m(2) (June 2017: 1.0 million m(2)) of remaining developable bulk
in Waterfall. This bulk is ungeared and approximately 600 000 m(2) is already serviced and immediately available for the value
accretive roll out of commercial, residential and industrial developments.

The value of the Waterfall development portfolio, comprising 7.3% (June 2017: 14.1%) of total gross assets, decreased to R2.1 billion
(June 2017: R3.8 billion) as a result of the five completed buildings. The values below include non-current assets held for sale.

                                                                          31 December 2017     31 December 2016      30 June 2017
                                                                                     R'000                R'000             R'000
Developments under construction                                                    288 011            1 074 092         1 880 605
Development rights                                                                 961 511            1 059 724         1 081 968
Infrastructure and services                                                        665 596            1 100 571           737 187
Attacq Sanlam joint venture                                                        142 174              133 762           140 999
Total                                                                            2 057 292            3 368 149         3 840 759

Developments under construction
The following properties were under construction as at 31 December 2017. Attacq's attributable share of the total 58 732 m(2) PGLA
is 29 366 m(2).

                                                                Land                          Anticipated     PGLA
Property                                                      parcel          Sector      completion date  (m(2))*    Pre-let %
Waterfall City
River Creek (Deloitte head office)+                               10          Office         January 2020   42 500          100
Waterfall Logistics Hub
Cummins South Africa's Regional Office+                            9      Industrial        November 2018   16 232          100
Total                                                                                                       58 732          100
* Estimated PGLA for 100.0% of development. Subject to change upon final remeasurement post completion
+ Attacq has a 50.0% co-ownership

The River Creek development is a 50/50 joint venture between Attacq and Atterbury Property Holdings Proprietary Limited
and its subsidiaries ("Atterbury Group"). As transfer is still pending, 50.0% of the carrying value is classified as held for sale.
Once transfer occurs the 31 December 2017 book value of R60.9 million will be converted to cash. Upon completion, Waterfall
City stands to further benefit from a significant densification brought about by the introduction of an estimated 3 500 Deloitte
staff members.

Attacq classified 50.0% of the development rights as well as infrastructure and service costs relating to Cummins South Africa's
Regional Office ("CISARO") as held for sale due to the 50/50 joint venture arrangement between Attacq and Zenprop Property
Holdings Proprietary Limited ("Zenprop"). The 31 December 2017 value of R37.0 million will be converted to cash on transfer to
the co-owner.

Development rights
Development rights relate to the notarially secured contractual rights held by Attacq Waterfall Investment Company Proprietary
Limited ("AWIC"), a 100.0% subsidiary of Attacq, to develop certain Waterfall land parcels.

As at 31 December 2017, Attacq has 975 468 m(2) remaining developable bulk. The heart of the development portfolio is Waterfall
City, zoned for retail, office, hotels and residential developments, amounting to 710 667 m(2). The Logistics Hub is, well positioned
for light industrial tenants, adding 173 710 m(2) to the remaining developable bulk. In addition, Attacq has a further 686 054 m(2) in
the joint venture with Sanlam Properties, a division of Sanlam Life Insurance Limited ("Sanlam Properties"). As at 31 December
2017 the equity accounted value of Attacq's interest in the joint venture was R142.2 million (June 2017: R141.0 million).

A maximum development roll out period of 12 years was incorporated in the development rights valuation process.

Infrastructure and services
The reduced value of infrastructure and services is attributable to an allocation of related service costs incurred on developments
under construction. Whilst this asset currently generates no cash return, it creates a platform for future economic benefits from
top structure developments.

Developments in the pipeline
The Atria – Land Parcel 10
Attacq and Barrow Properties Proprietary Limited ("Barrow Group") have established a 50/50 joint venture to develop The Atria,
a mixed-use precinct adjacent to the Mall of Africa which comprises two office buildings, one residential tower with 125 rental
apartments and a 179 room four star hotel. The hotel development will be sold prior to the commencement of the top structure
construction. The development cost, excluding the hotel, for this 37 280 m(2) PGLA precinct, is estimated at R981.5 million.
The super basement bulk excavations have been completed at a carrying value of R110.2 million and as transfer is pending, 50.0%
of the carrying value is classified as held for sale.

Corporate Campus – Land Parcel 10B
Corporate Campus is a 50/50 joint venture with Zenprop, with an approximate total development cost of R930.0 million. The
development comprises six multi-tenanted office buildings with an estimated total PGLA of 34 068 m(2). Phase I (5 868 m(2) of
PGLA) was completed in December 2017 with more than 94.0% of the building being tenanted. The construction of Phase
II, which consists of two buildings and the communal area, commenced post 31 December 2017. One of the buildings will be
tenanted by Accenture SA Proprietary Limited.

Waterfall Point Office Park ("Waterfall Point") – Land Parcel 15
Waterfall Point is a sectional title office park which is situated opposite Waterfall Corner along the R55. The office park will consist
of four buildings with a total PGLA of 9 584 m(2). Conditional sale agreements have been entered into for all of the sectional title
units. The cost as at 31 December 2017 of R27.7 million assigned to the development is classified as inventory as the office park is
being developed for disposal.

Pirtek and speculative warehouse – Land Parcel 8
Attacq commenced with the development of a warehouse for Pirtek post 31 December 2017. The estimated PGLA for Pirtek is
2 908 m(2) at an estimated cost of R29.4 million. In order to take advantage of economies of scale, a speculative warehouse will
be developed at the same time of 5 213 m(2) PGLA, at an estimated cost of R46.1 million. As the Pirtek warehouse is developed for
disposal, the cost assigned to the development is classified as inventory.


Rest of Africa retail investments
Overview
The value of Attacq's Rest of Africa retail investments is R1.1 billion (June 2017: R1.2 billion), comprising 4.0% (June 2017: 4.5%)
of Attacq's total gross assets. The net reduction over the year was largely as a result of a return of capital by AttAfrica Limited
("AttAfrica") as well as the strengthening of the Rand against the US Dollar.

Attacq's Rest of Africa investments are held via its:
- 25.0% shareholding in Gruppo Investment Nigeria Limited ("Gruppo"), the owner of Ikeja City Mall, located in Lagos, Nigeria;
- 31.8% shareholding in AttAfrica, which is invested in four retail properties in Ghana and one retail property in Zambia; and
- 25.0% interest in Grove Mall of Namibia Proprietary Limited ("The Grove"), owner of The Grove Mall of Namibia.

As at 31 December 2017, the Group's investment into Gruppo totalled R278.9 million (June 2017: R286.5 million). The reduced
investment value is due to the strengthening of the Rand against the US Dollar. Trading conditions in Nigeria remain challenging
despite an increase in the availability of foreign exchange. Consumers continue to be under pressure, even though the overall
economy is recovering on the back of higher oil prices.

Attacq's investment in AttAfrica, through its shareholder loan, amounted to R673.1 million (June 2017: R776.2 million). AttAfrica
repaid an amount of R99.3 million during the period, using funds generated by the external refinancing of Accra Mall. An
impairment of R3.5 million (June 2017: R82.8 million) was recognised against the loan due to poor operational performance in
Ghana and Zambia.

Currently Attacq is not receiving cash distributions from AttAfrica, due to the unfavourable trading conditions as well as a
consequence of the legal structure of Attacq's investment in AttAfrica.

Management's focus continues to be the filling of vacancies and tenant retention in order to optimise net income and asset value.

At 31 December 2017, the retail properties in which Attacq has an interest, together with the vacancy percentages were as follows:
                           
                                                                                                                          Attacq's
                                                                                                                         effective
 Property                                                       Location         Owner     PGLA (m(2))     Vacancy %    interest %
Manda Hill                                                Lusaka, Zambia     AttAfrica          40 561           5.8          15.9
Accra Mall                                                  Accra, Ghana     AttAfrica          21 349           7.2          15.0
West Hills Mall                                             Accra, Ghana     AttAfrica          27 560          12.3          14.3
Achimota Retail Centre                                      Accra, Ghana     AttAfrica          15 006           8.5          23.9
Kumasi City Mall                                           Kumasi, Ghana     AttAfrica          17 948          12.6          23.9
Ikeja City Mall                                           Lagos, Nigeria        Gruppo          22 223           3.8          25.0
The Grove Mall of Namibia                              Windhoek, Namibia     The Grove          52 089           0.6          25.0
 
Financial position
Investment properties
Investment properties increased by 3.0% to R20.3 billion (June 2017: 72.2%) of the total gross assets of the Group. The information
below excludes investment properties disclosed as non-current assets held for sale.

                                                                      31 December 2017       31 December 2016          30 June 2017
                                                                                 R'000                  R'000                 R'000
Completed buildings                                                         19 298 489             16 527 802            17 163 784
Developments under construction                                                235 927                907 803             1 598 966
Development rights                                                             961 511              1 059 720             1 058 236
Infrastructure and services                                                    664 343              1 100 556               710 875
Vacant land                                                                      5 000                  5 000                 5 000
Per valuation                                                               21 165 270             19 600 881            20 536 861
Straight-line lease debtor                                                   (842 117)              (719 931)             (801 496)
Total                                                                       20 323 153             18 880 950            19 735 365

Investments in and loans to associates and joint ventures
Investments in and loans to associates reduced from June 2017 (R4.4 billion) to December 2017 (R4.2 billion) and relate mainly to
MAS, AttAfrica, Gruppo and The Grove.

Other financial assets
Other financial assets comprise mainly of loans advanced to Atterbury Group and the 25.0% co-owner in the new PwC Tower
and Annex development. The Atterbury Group loan, with a 31 December 2017 outstanding balance of R111.3 million (June 2017:
R177.2 million), was settled in January 2018. The loan of R328.6 million (June 2017: R243.1 million) provided to the co-owner of the
PwC Tower and Annex carries similar terms and conditions to the debt raised by AWIC in respect of the development and will be
serviced monthly from the property's rental income.

Non-current assets held for sale
                                                                    31 December 2017       31 December 2016           30 June 2017
                                                                               R'000                  R'000                  R'000
Brooklyn Bridge Office Park                                                  550 548                640 000                553 000
Altech Building                                                                    –                 50 017                      –
50% of The Atria                                                              55 125                      –                 50 025
50% of River Creek (Deloitte head office)                                     60 854                      –                      –
The Grove                                                                    185 951                      –                      –
50% of Cummins South Africa's Regional Office                                 37 003                      –                      –
Stenham European Shopping Centre Fund Limited ("Stenham")                      2 714                      –                197 677
Rainprop Proprietary Limited                                                     775                      –                    781
Pemba                                                                              –                 43 481                      –
Total                                                                        892 970                733 498                801 483

The disposal of the Nova Eventis regional shopping centre in Leipzig, Germany, held by Stenham, was implemented. Attacq
utilised the proceeds to reduce interest-bearing debt. In line with Attacq's strategy to convert to a REIT, and to dispose of
non-core assets, The Grove is in the process of being sold to one of the existing co-owners.

Borrowings
Total interest-bearing borrowings net of cash decreased by 0.5% to R10.2 billion compared with 30 June 2017. Gearing, calculated
as total interest-bearing debt less cash on hand as a percentage of total assets, improved from 37.1% (June 2017) to 36.2%
(December 2017). The improved gearing is as a result of a reduction in debt facilities that took place during the last six months,
and an increase in the gross asset value of assets. Attacq simultaneously amended the majority of its facilities to an interest-only
profile as part of the process to convert to a REIT.

In order to mitigate interest rate risk, as at 31 December 2017, approximately 98.0% (June 2017: 90.8%) of total committed
facilities of R11.5 billion (June 2017: R12.0 billion) were hedged by way of fixed interest rate loans and interest rate swaps. This is
well in excess of the 70.0% minimum interest rate hedging policy set by the Attacq Board. The weighted average cost of funding
decreased over the last 12 months to 8.9% (June 2017: 9.2%).

R545.5 million (June 2017: R2.6 billion) of the Group's interest-bearing debt is due for repayment over the next 12 months,
including R330.6 million relating to non-current assets held for sale. During the past six months, Attacq successfully refinanced
R3.2 billion of debt, through its Attacq Retail Fund Proprietary Limited and Lynnwood Bridge Office Park Proprietary Limited
portfolios. Notwithstanding that half of the debt was due to expire in May 2018, the Group refinanced the entire amount early in
order to extend the tenure of its loan book and take advantage of favourable pricing. Attacq used the refinance opportunity to
introduce three new institutional lenders to the Group.


Financial performance
Profit before taxation has increased from R64.9 million to R414.3 million due to materially lower operating and other expenses as
well as lower finance costs.

Other income
Other income increased by 11.7% to R38.4 million which includes a foreign exchange gain of R18.0 million on the Euro bank
funding, a further R10.0 million profit (June 2017: R22.0 million) on the original disposal of 25.0% of the PwC Tower and Annex to
the co-owners and a R7.3 million reversal of impairment on the Stenham investment.

Operating and other expenses
Operating and other expenses consists of operating expenses of R75.0 million (December 2016: R77.2 million) and other expenses
of R67.5 million (December 2016: R454.3 million). Other expenses mainly consists of foreign exchange losses of R50.8 million
(December 2016: R173.1 million). The decrease is primarily attributable to a number of once off expenses included in the prior
reporting period, namely the Stenham impairment of R138.0 million, the AttAfrica impairment of R89.5 million, a decrease in
foreign exchange losses of R122.3 million and a R22.3 million impairment on the Gruppo investment.

Fair value adjustments
Total fair value adjustments for the period, which include fair value adjustments on investment properties and mark-to-market
movements on the interest rate swaps, reduced by 13.6% to R213.4 million (December 2016: R247.0 million).

Compared with the prior period, fair value adjustments on investment properties decreased by 7.8% to R252.9 million (December
2016: R274.1 million) and are made up as follows:

                                                                      Six months ended     Six months ended   12 months ended
                                                                      31 December 2017     31 December 2016      30 June 2017
                                                                                 R'000                R'000             R'000
Completed buildings                                                            228 036              165 620           536 936
Developments under construction                                                 49 505               78 147           193 133
Development rights                                                            (24 659)               30 363          (65 544)
Total                                                                          252 882              274 130           664 525

Fair value adjustments on the South African completed buildings increased by 38.0% from R165.6 million to R228.0 million,
however, the growth was negatively impacted by further impairments on the 2 Eglin, Sunninghill and Newtown Junction
properties. The negative fair value adjustment on Newtown Junction is due to the negative outlook on market and future
rental escalations. The 2 Eglin, Sunninghill property's impairment is due to market rentals in the Sunninghill area coming under
considerable pressure coupled with management's more conservative assumptions around tenanting of the building.

Property valuations for the interim reporting period are Directors' valuations which are in the main, supported by external desktop
valuations performed by Jones Lang LaSalle Proprietary Limited, Sterling Valuation Specialists and Mills Fitchet Magnus Penny &
Wolffs. The Directors have made adjustments for straight-lining and cost to complete.

The Directors' valuation in respect of the Waterfall development rights is based on a residual land valuation model. The inputs to
this model is an external desktop valuation performed on a freehold, fully serviced basis. The desktop valuation is then adjusted
downward by management to take into account, inter alia, the costs required to complete the servicing of the development rights
as well as the obligations pursuant to the leasehold nature of the development rights.

Over the last six months a negative movement of R39.5 million (December 2016: R28.5 million) was recorded on the mark-to-
market valuation of interest rate swaps.

Net income from associates
Net income from associates for the current period includes:
-   Income of R41.8 million (December 2016: R2.2 million) from MAS;
-   R11.5 million of income (December 2016: Loss of R34 000) from Artisan Development Partners Limited;
-   A loss of R6.7 million (December 2016: R0.6 million) from Retail Africa Wingspan Investments Proprietary Limited
    ("Wingspan"); and
-   A loss of R9.4 million (December 2016: R8.6 million) from Gruppo.

Investment income
Investment income for the current period reduced by 22.4% to R82.8 million (December 2016: R106.8 million). Interest income
from international investments, via loan accounts, amounted to R60.7 million (December 2016: R83.1 million).

The MAS dividend received of R74.2 million (December 2016: R54.9 million) as well as the Wingspan dividend of R10.3 million, is
excluded from investment income as these dividends are applied to reduce the carrying value of the investments in associates.
No other dividend income was recorded under investment income.

Finance costs
The decrease in finance costs of 8.0% to R456.1 million (December 2016: R495.5 million) is mainly attributable to a reduction
of debt and a lower JIBAR rate. The interest cover ratio for the six months ended 31 December 2017 improved to 1.6 times
(December 2016: 1.2 times) as a result of both an increase in income and a reduction in the finance cost.

Change in directors
Effective 1 July 2017, Louis van der Watt resigned from the Board of Directors of the Company as a Non-Executive Director.
Morne Wilken resigned from the Board as an Executive Director and Chief Executive Officer ("CEO") with effect from
31 December 2017, in order to take up a position as CEO of MAS. The Board, through its Remuneration Committee, has
commenced the process of identifying and appointing a successor to Morne. As an interim measure the Board appointed
Melt Hamman, the current Chief Financial Officer ("CFO"), as Interim CEO from 31 December 2017 until a new CEO is appointed.

Subsequent events
The Directors are unaware of any matters or circumstances arising subsequent to 31 December 2017 that require any additional
disclosure or adjustment to the interim financial statements.

Prospects
Attacq is focusing on its four key value drivers while making good progress towards converting to a REIT. As Waterfall City and
its surrounds continue to develop, the increasing tenant occupation will in turn contribute to the improvement in the Mall of
Africa's trading densities, further increasing its asset value in the years to come.

The location of Waterfall's Logistic Hub between Johannesburg and Pretoria with its close proximity to major highways and
transport routes, makes it a natural location for distribution centres and other light industrial users. The joint venture with Sanlam
Properties has further increased the land available for industrial developments.

Outside of Waterfall, Attacq will continue to optimise and extract further value from its South African portfolio of high quality
properties, including its portfolio of regional malls.

On an international front, Attacq expects to benefit from increasing distributions from its MAS investment underpinned by MAS'
income-generating investments and its strong acquisition and development pipeline.

In Africa, no further acquisitions or expansions will be pursued.

Attacq is targeting a maiden dividend payment of 73 cents per share, payable in October 2018, for the year ended 30 June 2018.
It is anticipated that Attacq's distributions will grow by 20.0% per annum for the next three financial years commencing 1 July
2018. The guidance is based on assumptions which include forecasted rental income based on contractual terms and anticipated
market-related renewals, the expected roll-out of the current and budgeted development portfolio, MAS achieving its distribution
targets, the required positioning to become a REIT and that no unforeseen circumstances such as major corporate tenant failures
or macro-economic instability materialise. The guidance has not been reviewed or reported on by Attacq's auditors.

Basis of preparation
The condensed unaudited consolidated interim financial statements for the six months ended 31 December 2017 have been
prepared in accordance with International Financial Reporting Standards ("IFRS"), IAS 34: Interim Financial Reporting, the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued
by the Financial Reporting Standards Council, the JSE Listings Requirements and the requirements of the Companies Act of
South Africa. These interim results was compiled under the supervision of M Hamman CA(SA), CFO and Interim CEO of Attacq.

The accounting policies applied in the preparation of the condensed unaudited consolidated interim financial statements are in
terms of IFRS and are consistent with the accounting policies applied in the preparation of the previous consolidated financial
statements, with the exception of the adoption of new and revised standards which became effective during the period. The new
and revised standards had no material impact on the interim financial statements.

The Group's investment properties are valued internally by the Directors at interim reporting periods and externally by
independent valuers for year-end reporting. In terms of IAS 40: Investment Property and IFRS 7: Financial Instruments:
Disclosures, the Group's investment properties are measured at fair value and are categorised as level 3 investments. In terms of
IAS 39: Financial Instruments: Recognition and measurement and IFRS 7, the Group's interest rate derivatives are measured at fair
value through profit or loss and are categorised as level 2 investments. In terms of IAS 39, listed investments are measured at fair
value, being the quoted closing price at the reporting date, and are categorised as level 1 investments. Unlisted investments are
categorised as level 3 investments. There were no transfers between levels 1, 2 and 3 investments during the period. The valuation
methods applied are consistent with those applied in preparing the previous consolidated financial statements.

The condensed interim financial statements have not been audited or reviewed by Attacq's auditors.

On behalf of the Board

P Tredoux                                                          M Hamman
Chairman                                                           CFO and Interim CEO

27 February 2018

Independent Non-Executive Directors
P Tredoux (Chairman)
MM du Toit
HR El Haimer
KR Moloko
BT Nagle
S Shaw-Taylor
JHP van der Merwe

Executive Director
M Hamman (CFO and Interim CEO, effective date 31 December 2017)

Company Secretary
T Kodde

Attacq Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/000543/06)
JSE share code: ATT    ISIN: ZAE000177218
("Attacq" or "the Company" or "the Group")

Registered office
ATT House, 2nd Floor
Maxwell Office Park
37 Magwa Crescent
Waterfall City
2090

Postal address
PostNet suite 016
Private Bag X81
Halfway House
1685

Transfer Secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
(PO Box 61051, Marshalltown, 2107)

Sponsor
Java Capital

Company contact details
Head of Marketing
Mandy Shave
Landline number: 087 845 1147
mandy@attacq.co.za

Head of Investor Relations
Brenda Botha
Landline number: 087 845 1112
InvestorRelations@attacq.co.za

ATT House, 2nd Floor, Maxwell Office Park,
37 Magwa Crescent, Waterfall City, 2090
Tel +27 87 845 1136

reception@attacq.co.za
www.attacq.co.za



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