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GROWTHPOINT PROPERTIES LIMITED - Condensed unaudited results for the six months ended 31 December 2017

Release Date: 28/02/2018 09:00
Code(s): GRT     PDF:  
Wrap Text
Condensed unaudited results for the six months ended 31 December 2017

GROWTHPOINT PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
A Real Estate Investment Trust, listed on the JSE
Share code: GRT ISIN: ZAE000179420

CONDENSED UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017 

HIGHLIGHTS
- 101.2 cents 
  dividend per share
  6.5% growth

- R2.9bn 
  distributable income 
  growth 10.6% 

- 3.9%
  increase in Group NAV from HY17 to 2 593 cents per share
  
- 4.6% Group vacancies
  well contained albeit they have increased by 0.9% from FY17

- R127.7bn
  Group property assets 4.4% increase from FY17 
  
- 34.5% Group LTV
  gearing levels remain conservative, down by 0.5% from FY17 
  
- Largest South African primary listed REIT 21st largest company in the FTSE/JSE top 40 index
  R80.4bn 
  Market capitalisation
  R4.5bn
  average value of shares traded per month
  
- Baa3 global scale and AAA .za national scale rating from Moody's

- Included in major sustainability indices:
  FTSE/JSE Responsible Investment Index, Dow Jones Sustainability Index (DJSI) FTSE4Good Emerging Index

Investment proposition:
- Sustainable quality of earnings
- 14-year track record of uninterrupted dividend growth - 3.1% above inflation on average
- Underpinned by high-quality physical property assets
- Diversified across international geographies and sectors
- Dynamic and proven management track record
- Best practice corporate governance
- Transparent reporting
- Level 3 BEE contributor

COMMENTARY
Growthpoint is an international property company that provides space to thrive with innovative and sustainable
property solutions. 

INTRODUCTION
Growthpoint is the largest South African primary listed REIT with a quality portfolio of 463 directly owned 
properties in South Africa (RSA) valued at R80.1 billion. 

Growthpoint has a 65.1% interest in Growthpoint Properties Australia (GOZ), which owns 56 properties in 
Australia valued at R31.2 billion. 

Growthpoint has five equity-accounted investments, valued at R12.1 billion. Our 50% share of the V&A Waterfront 
(V&A) is the largest of these investments (R7.2 billion), followed by a 29.0% stake in London Stock Exchange 
(AIM)-listed Globalworth Real Estate Investments (GWI) (R4.9 billion). 

Growthpoint also has a listed investment which is an 18.2% investment in ASX-listed Industria REIT, owned by 
GOZ, valued at R722.0 million.

In line with Growthpoint's vision "to be a leading international property company providing space to thrive", 
the company's strategy incorporates the optimisation and streamlining of our existing portfolio, the 
introduction of new revenue streams via the Funds Management business and trading and development and 
lastly, further international diversification. The company has set a target to double the offshore 
contribution to distributable income over the next three to five years. 

The company's objective is to grow and nurture a diversified portfolio of quality investment properties, 
providing accommodation to a wide spectrum of clients and delivering sustainable income distributions and 
capital appreciation, optimised by effective financial structures. Effectively, net property income 
received by the property portfolios of South Africa (RSA) and GOZ, including interest received, the 
distributable income received from the equity-accounted and listed investments, less administration and 
operating overheads, interest on debt and normal taxation, is distributed to Growthpoint shareholders 
bi-annually. Growthpoint's distributions are based on sustainable income generated from rentals, trading 
profits and development fees and going forward, distributions and management fees from its Funds 
Management business.

Growthpoint is included in the FTSE/JSE Top40 Index (J200) with a market capitalisation of R80.4 billion 
at 31 December 2017 (HY18). Over this period, on average, more than 180.0 million shares traded per month 
(HY17: 147.2 million). The monthly average value traded was R4.5 billion (HY17: R3.8 billion). This makes 
Growthpoint the most liquid and tradable way to own commercial property in South Africa. 

The value of Growthpoint's property portfolio is split between South African (inclusive of the V&A) (69.5%) 
and international (30.5%) assets. The RSA portfolio represents 84.9% by gross lettable area (GLA), excluding 
GWI. It is well diversified in the three major sectors of commercial property, being retail, office and 
industrial. Most of the value of the RSA portfolio is in strong economic nodes within major metropolitan 
areas. 

For the period under review the net asset value (NAV) of the group increased by 3.9% to 2 593 
(HY17: 2 495) cents per share.

GROWTH IN DISTRIBUTIONS
Growthpoint delivered growth in distributions per share for HY18 of 6.5% and has declared an interim dividend 
of 101.2 cents per share for the six months ended 31 December 2017. This growth is in line with the guidance 
given to the market for FY18.

Distributions increased by R281 million or 10.6% to R2.9 billion. 

BASIS OF PREPARATION
The condensed consolidated interim financial statements are prepared in accordance with International Financial
Reporting Standard, IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the 
Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council, 
and the requirements of the Companies Act of South Africa. The accounting policies applied in preparing these 
interim financial statements are in terms of International Financial Reporting Standards and are consistent 
with those applied in the previous annual financial statements. Mr G Volkel (CA(SA)), Growthpoint's Financial 
Director, was responsible for supervising the preparation of these condensed consolidated interim financial 
statements. 

These condensed interim financial statements for the period ended 31 December 2017 have not been reviewed or 
audited by Growthpoint's independent external auditors.

GROWTHPOINT PROPERTIES AUSTRALIA (GOZ)
The investment in GOZ was accounted for in terms of IAS 21 The Effects of Changes in Foreign Exchange Rates. 
The statement of financial position includes 100% of the assets and liabilities of GOZ, converted at the 
closing exchange rate at HY18 of R9.66:AUD1 (FY17: R10.04:AUD1).

On 13 July 2017, GOZ acquired an 18.2% stake in the Australian Securities Exchange (ASX)-listed Industria REIT,
classified as a Listed Investment, for AUD68.1 million (R681.0 million).

A deferred tax liability of R2.4 billion (FY17: R2.1 billion) is included in the statement of financial position. 
This relates to capital gains tax payable in Australia if Growthpoint were to sell its investment in GOZ. 

The statement of profit or loss and other comprehensive income also includes 100% of the revenue and expenses 
of GOZ, which were translated at an average exchange rate of R10.45: AUD1 (HY17: R10.55:AUD1) for HY18.

The resulting foreign currency translation difference is recognised in other comprehensive income. 
A non-controlling interest was raised for the 34.9% (FY17: 34.9%) not owned by Growthpoint.

Included in the HY18 distributable income is R417.5 million income from GOZ, compared to R426.2 million for HY17. 
Included in normal tax in the statement of profit or loss and other comprehensive income is R74.9 million 
(HY17: R67.0 million) that relates to withholding tax paid on the distributions received from GOZ. The increased 
withholding tax and stronger Rand had a negative impact on the distribution received from GOZ.

V&A WATERFRONT AND OTHER EQUITY-ACCOUNTED INVESTMENTS
The investments in the V&A, GWI and the other joint ventures were accounted for in terms of IFRS 11 Joint
Arrangements. The equity-accounting method was used, where the Group's share of the profit or loss and other 
comprehensive income of these investments were accounted for.

Included in the HY18 finance income is R287.0 million from the V&A, compared to R256.0 million for HY17, and 
R128.0 million from GWI (included in distributable income), compared to R78.0 million for FY17. 

NET PROPERTY INCOME
Gross revenue increased by 6.0% for HY18 compared to HY17. RSA increased revenues by 6.4% compared to HY17, 
and the GOZ operations increased revenues by 4.7%.

The ratio of property expenses to revenue for the Group increased slightly to 21.7% at HY18 from 21.3% at 
HY17. For RSA the ratio increased to 24.0% from 23.7% at HY17, and increased for GOZ to 14.3% from 13.7% 
at HY17.

FAIR VALUE ADJUSTMENTS
The revaluation of properties in RSA and GOZ resulted in an increase of R2.5 billion (2.3%) to R111.3 billion 
for investment property (including investment properties classified as held for sale). This was driven mainly 
by growth in future contractual rental. Interest-bearing borrowings and derivatives were fair valued using 
the South African or EUR swap curve at HY18, decreasing the overall liability by R174.0 million. 

These fair value adjustments and other non-distributable items, such as capital items, non-cash charges, 
deferred taxation and the net effect of the non-controlling interests portion of the non-distributable items, 
were transferred to the non-distributable reserve.

FINANCE COSTS
Finance costs increased by 4.3% to R1 308 million (HY17: R1 254 million). This was partly offset by the 
proceeds from the Distribution Re-Investment Plans (DRIPs) offered by Growthpoint. The weighted average 
interest rate for RSA borrowings was 9.1% (HY17: 9.2%) (7.5% including Euro loans and cross-currency 
interest rate swaps (CCIRS) (HY17: 7.6%)). The weighted average maturity of debt decreased to 2.8 years 
(FY17: 3.0 years). Finance costs for GOZ increased by 0.7% from R291.0 million in HY17 to R293.0 million 
in HY18. The interest cover ratio, where income from the equity-accounted investments and listed 
investments is included in the operating profit, remained at 3.5 times at HY18 (HY17: 3.5 times).

FINANCE INCOME
Finance income increased by 15.8% to R360.0 million (HY17: R311.0 million). 

ACQUISITIONS AND COMMITMENTS
Growthpoint acquired one retail property, the remainder of N1 City, for R922.1 million and one industrial property,
for R132.0 million during the period for its RSA portfolio. The development and capital outlay for RSA of 
R1.1 billion (HY17: R1.1 billion) was for various projects undertaken in the period, of which the Discovery 
Head Office accounted for R275.7 million. 

Growthpoint has commitments outstanding for RSA developments totalling R2.2 billion (HY17: R2.4 billion) of 
which 144 Oxford, Rosebank is the largest at R600.2 million. These commitments also include Exxaro Head Office 
in Centurion at R408.5 million.

GOZ acquired one industrial property for R517.8 million (AUD48.6 million) and it incurred development costs 
of R64.7 million (AUD6.4 million), which includes an office property development at Buildings 1 & 3, 572-576 
Swan Street, Richmond, VIC for R18.4 million (AUD1.7 million). 

GOZ has commitments outstanding totalling R146.5 million (AUD14.8 million) (HY17: R218.0 million (AUD22.0 million)) 
of which 1 Charles Street, Parramatta, NSW is the largest at R59.4 million (AUD6.0 million). These commitments also
include Building 2, 572-576 Swan Street, Richmond, VIC at R37.6 million (AUD3.8 million).

Our 50% development and capital expenditure at the V&A amounted to R187.0 million (HY17: R312 million) for the period.
Growthpoint's share of the V&A's commitments outstanding at HY18 amounted to R99.7 million (HY17: R364.0 million). 
The largest include the Dock Road Junction at R35.1 million, Battery Parkade at R23.8 million and Waterway House 
at R18.6 million.

ADDITIONAL INVESTMENT GLOBALWORTH (GWI)
Growthpoint followed its rights in the GWI EUR340.0 million capital raise in December 2017 and made an additional
investment of R1.9 billion (EUR113.8 million) in GWI. This increased Growthpoint's interest to 29.0%.
 
GWI completed its strategic investment in Griffin Premium RE. N.V. ("GPRE") resulting in a shareholding of 
71.7% in December 2017. GPRE has now been fully consolidated into Globalworth's accounts for FY17.

On 22 December 2017, GPRE completed the acquisition of three high quality properties in Wroclaw, Gdansk 
and Katowice in Poland from Echo Polska Properties (EPP) for a total consideration of approximately 
EUR160.0 million. This takes GWI's total properties to 39, 19 in Romania and 20 in Poland.

DISPOSALS AND HELD FOR SALE ASSETS
Growthpoint disposed of ten properties in the period (HY17: seven) for R478.6 million (HY17: R259.0 million),
achieving a collective R230.8 million (HY17: R85.0 million) profit on cost.

At HY18, five RSA properties (HY17: four) valued at R159.9 million (HY17: R968.0 million) were held for sale.

GOZ disposed of two properties in the period (HY17: five) with a book value of R1.7 billion (AUD169.4 million) 
(HY17: R1.6 billion (AUD151.6 million)).

ARREARS
Total RSA arrears at HY18 were R76.6 million (HY17: R82.8 million) with a provision for bad debts of 
R28.9 million (HY17: R34.2 million). Total RSA bad debt expenses were R7.1 million (HY17: R6.4 million).

VACANCY LEVELS
At HY18 Growthpoint's vacancy levels as a percentage of its total portfolio GLA were:

                    Total GLA                    Vacancy              
                            m2             m2          %         %    
                          HY18           HY17       HY18      HY17    
Retail               1 423 816      1 422 121        3.0       2.6    
Office               1 757 898      1 759 080        8.4       6.9    
Industrial           2 244 535      2 273 094        4.1       6.0    
RSA total            5 426 249      5 454 295        5.2       5.4    
GOZ                  1 003 529      1 065 623        2.4       0.5    
V&A (50%)              229 315        217 920        1.2       1.1    
Total/Average %      6 659 093      6 737 838        4.6       4.5    

Vacancies decreased in the industrial sector but increased across the retail and office sectors. 
Tenant retention remains a priority and we are driving it through various initiatives including 
the UNdeposit and Smartmove campaigns, as well as the launch of Growthpoint's resource efficient, 
sustainable Thrive Portfolio.

EQUITY RAISED
During the period Growthpoint issued 45.7 million shares and raised R1.1 billion through its DRIP programme. 
The DRIP equity raised was used to finance Growthpoint's investment activities.

BORROWINGS AND NET WORKING CAPITAL
At HY18, the consolidated loan-to-value ratio (LTV), measured by dividing the nominal value of interest-bearing
borrowings (net of cash) by the fair value of property assets including investment property held for sale and 
the equity-accounted investments and the listed investments, was 34.5% (HY17: 36.7%). Growthpoint has 
consistently applied its policy for measuring the fair value of long-term interest-bearing loans and 
derivatives. There were no changes in valuation techniques, nor were there any transfers between level 1, 
level 2 and level 3 during the period.

Growthpoint had unused committed bank facilities of R3.0 billion in RSA and R2.2 billion (AUD230.9 million) 
in Australia at HY18, which assures that it can meet its short-term commitments. 

CHANGE IN DIRECTORATE
Mr HS Herman retired as a non-executive director on 14 November 2017.

Ms N Siyotula was appointed as a non-executive director on 1 January 2018.

EVENTS AFTER THE REPORTING PERIOD
In line with IAS 10 Events after the Reporting Period, the declaration of the dividend occurred after the end 
of the reporting period, resulting in a non-adjusting event that is not recognised in the financial statements.

PROSPECTS
The quality and diversity of the underlying South African property portfolio and our strong corporate customer 
base, together with our investment in the prestigious V&A, will continue to ensure sustainable, quality earnings 
domestically, against the back drop of a domestic economy where property fundamentals remain weak. Growthpoint's 
increased internationalisation has added further geographic exposure to our business. The contribution to 
distributable income from GOZ is expected to increase in line with guidance provided by GOZ but the strong 
ZAR and increased dividend withholding tax are expected to have a negative impact. GWI, through the GPRE 
acquisition, now has a Polish footprint which further adds to the diversification and defensiveness of the 
investment opportunity. Large multi-national tenants continue to be attracted to both Poland and Romania 
due to the young, educated, affordable and ambitious labour force, and as such GWI is expected to perform 
well. Given the above, the Growthpoint Board is of the view that the dividend growth for FY18 will be 
similar to that achieved for FY17.

INTERIM DIVIDEND WITH THE ELECTION TO REINVEST THE CASH DIVIDEND IN RETURN FOR GROWTHPOINT SHARES
Notice is hereby given of the declaration of the final dividend number 64 of 101.20000 cents per share for 
the period ended 31 December 2017. Shareholders will be entitled to elect to reinvest the net Cash Dividend, 
in return for Growthpoint shares (Share Alternative), failing which they will receive the net cash dividend in 
respect of all or part of their shareholdings. The entitlement of shareholders to elect to participate in the 
share re-investment alternative is subject to the Board, either itself or through a Board sub-committee 
appointed to set the pricing and terms of the share re-investment alternative, having the discretion to 
withdraw the entitlement to elect the share re-investment alternative should market conditions warrant 
such action. A withdrawal of the entitlement to elect the share re-investment alternative would be 
communicated to shareholders before the publication of the finalisation announcement on Friday, 
9 March 2018.

Other information:
- issued shares at 31 December 2017: 2 934 202 472 ordinary shares of no par value.
- Income Tax Reference Number of Growthpoint: 9375/077/71/7.

Shareholders are advised that the dividend meets the requirements of a "qualifying distribution" for the 
purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (Income Tax Act). The dividends on the 
shares will be deemed to be taxable dividends for South African tax purposes in terms of section 25BB 
of the Income Tax Act.

Tax implications for South African resident shareholders
Dividends received by or accrued to South African tax residents must be included in the gross income of such
shareholders and will not be exempt from the income tax in terms of the exclusion to the general dividend 
exemption contained in section 10(1)(k)(i)(aa) of the Income Tax Act, because they are dividends distributed 
by a REIT. These dividends are however exempt from dividend withholding tax (Dividend Tax) in the hands of 
South African resident shareholders provided that the South African resident shareholders have provided to 
the Central Securities Depository Participant (CSDP) or broker, as the case may be, in respect of 
uncertificated shares, or the company, in respect of certificated shares, a DTD(EX) (Dividend Tax: 
Declaration and undertaking to be made by the beneficial owner of a share) form to prove their status 
as South African residents.

If resident shareholders have not submitted the abovementioned documentation to confirm their status as 
South African residents, they are advised to contact their CSDP or broker, as the case may be, to arrange 
for the documents to be submitted prior to the payment of the dividend.

Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT will not be taxable as income and instead will 
be treated as ordinary dividends which are exempt from income tax in terms of the general dividend exemption 
section 10(1)(k) of the Income Tax Act. Any dividend received by a non-resident from a REIT is subject to 
Dividend Tax at 20%, unless the rate is reduced in terms of any applicable agreement for the avoidance of 
double taxation (DTA) between South Africa and the country of residence of the non-resident shareholder. 
Assuming Dividend Tax will be withheld at a rate of 20%, the net amount due to non-resident shareholders 
is 80.96000 cents per share. A reduced dividend withholding tax rate in terms of the applicable DTA may 
only be relied on if the non-resident shareholder has provided the following forms to their CSDP or broker, 
as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares:
- a declaration that the dividend is subject to a reduced rate as a result of the application of the DTA; and
- a written undertaking to inform the CSDP broker or the company, as the case may be, should the circumstances
  affecting the reduced rate change or the beneficial owner cease to be the beneficial owner, both in the form 
  prescribed by the Commissioner of the South African Revenue Services.

If applicable, non-resident shareholders are advised to contact the CSDP, broker or the company, as the case 
may be, to arrange for the abovementioned documents to be submitted prior to payment of the dividend if such 
documents have not already been submitted.

Summary of the salient dates relating to the Cash Dividend and Share Alternative are as follows:
Salient dates and times                                                                     2018    
Circular and form of election posted to shareholders                         
and announced on SENS                                                            Friday, 2 March    
Last date for Growthpoint to withdraw the entitlement for                    
shareholders to elect to participate in the share re-investment              
alternative before the publication of the announcement of the                
share alternative issue price and finalisation information on SENS               Friday, 9 March    
Announcement of share re-investment alternative issue price                  
and finalisation information published on SENS                                  Monday, 12 March    
Last day to trade (LDT) cum dividend                                            Monday, 19 March    
Shares to trade ex-dividend                                                    Tuesday, 20 March    
Listing of maximum possible number of share alternative shares               
commences on the JSE                                                            Friday, 23 March    
Last day to elect to receive the share alternative (no late                  
forms of election will be accepted) at 12:00 (South African time)               Friday, 23 March    
Record date                                                                     Friday, 23 March    
Announcement of results of cash dividend and share re-investment             
alternative published on SENS                                                   Monday, 26 March    
Cheques posted to certificated shareholders and accounts credited            
by CSDP or broker to dematerialised shareholders electing the cash           
alternative on                                                                  Monday, 26 March    
Share certificates posted to certificated shareholders and                   
accounts credited by CSDP or broker to dematerialised shareholders           
electing the share re-investment alternative on                              Wednesday, 28 March    
Adjustment to the maximum number of shares listed on or about                 Thursday, 29 March    

Notes:
1. Shareholders electing the share reinvestment alternative are alerted to the fact that the new shares 
   will be listed on LDT + 3 and that these new shares can only be traded on LDT + 3, due to the fact 
   that settlement of the shares will be three days after record date, which differs from the 
   conventional one day after record date settlement process.
2. Shares may not be dematerialised or rematerialised between commencement of trade on 
   Tuesday, 20 March 2018 and the close of trade on Friday, 23 March 2018.

By order of the Board

GROWTHPOINT PROPERTIES LIMITED
27 February 2018

DIRECTORS
JF Marais (Chairman), LN Sasse* (Group Chief Executive Officer), EK de Klerk* (Chief Executive Officer 
South Africa), G Volkel* (Financial Director), MG Diliza, PH Fechter, LA Finlay, JC Hayward, SP Mngconkola, 
R Moonsamy, NBP Nkabinde, N Siyotula, FJ Visser
* Executive

COMPANY SECRETARY
RA Krabbenhoft

REGISTERED OFFICE 
The Place, 1 Sandton Drive, Sandton, 2196 
PO Box 78949, Sandton, 2146 

TRANSFER SECRETARY
Computershare Investor Services (Pty) Ltd
(Registration number 2004/003647/07)
Ground Floor, 70 Marshall Street,
Johannesburg, 2001
PO Box 61051, Marshalltown, 2107

SPONSOR
Investec Bank Limited
(Registration number 1969/004763/06)
100 Grayston Drive, Sandown, Sandton, 2196
PO Box 785700, Sandton, 2146


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the six months ended 31 December 2017
                                                                           Unaudited        Unaudited        Audited    
                                                                          six months       six months      12 months    
                                                                         31 December      31 December        30 June    
                                                                                2017             2016           2017    
                                                              Notes               Rm               Rm             Rm    
Revenue, excluding straight-line lease income adjustment                       5 487            5 178         10 716    
Straight-line lease income adjustment                                              7               40             39    
Total revenue                                                                  5 494            5 218         10 755    
Property-related expenses                                                     (1 192)          (1 103)        (2 245)    
Net property income                                                            4 302            4 115          8 510    
Other administrative and operating overheads                                    (213)            (196)          (416)    
Operating profit                                                               4 089            3 919          8 094    
Equity-accounted investment profit - net of tax                                  555               68            369    
Fair value adjustments, capital items and other charges                        2 926            1 595          1 850    
Finance and other investment income                               1              360              311            692    
Finance expense                                                               (1 308)          (1 254)        (2 510)    
Profit before taxation                                                         6 622            4 639          8 495    
Taxation                                                                        (179)             137            (48)    
Profit for the year                                                            6 443            4 776          8 447    
Other comprehensive income                                                                                              
Items that may subsequently be reclassified to profit or loss                                                           
Translation of foreign operations                                               (917)          (1 891)        (1 571)    
Total comprehensive income for the year                                        5 526            2 885          6 876    
                                                                                                                        
Profit attributable to:                                                        6 443            4 776          8 447    
Owners of the company                                                          5 748            4 416          7 524    
Non-controlling interests                                                        695              360            923    
Total comprehensive income attributable to:                                    5 526            2 885          6 876    
Owners of the company                                                          5 092            3 154          6 507    
Non-controlling interests                                                        434             (269)           369    
                                                                                                                        
                                                                               Cents            Cents          Cents    
Basic earnings per share                                                      200.07           158.86         267.72    
Diluted earnings per share                                                    198.80           158.02         266.21    
Headline earnings per share                                       2           101.04           100.12         179.66    
Diluted headline earnings per share                               2           100.40            99.58         178.64    
                                                              

STATEMENT OF FINANCIAL POSITION
As at 31 December 2017
                                                                           Unaudited        Unaudited        Audited    
                                                                         31 December      31 December        30 June    
                                                                                2017             2016           2017    
                                                                                  Rm               Rm             Rm    
Assets                                                                                                                  
Cash and cash equivalents                                                        631            1 027            613    
Trade and other receivables                                                    3 697            2 970          3 214    
Investment property classified as held for sale                                  160            1 070          1 241    
Derivative assets                                                                697              347            356    
Listed investments                                                               722              382            226    
Fair value of property assets                                                111 145          107 593        108 201    
Fair value of investment property for accounting purposes                    108 557          105 085        105 641    
Straight-line lease income adjustment                                          2 588            2 508          2 560    
Long-term loans granted                                                          353              761            709    
Equity-accounted investments                                                  12 142            9 627          9 920    
Equipment                                                                         14                5             15    
Intangible assets                                                              2 314            2 412          2 362    
Total assets                                                                 131 875          126 194        126 857    
Liabilities and Equity                                                                                                  
Liabilities                                                                                                             
Trade and other payables                                                       2 739            2 442          2 572    
Derivative liabilities                                                           566              537            587    
Taxation payable                                                                  71               60             44    
Interest-bearing borrowings                                                   43 810           44 843         42 568    
Deferred tax liability                                                         2 441            2 178          2 332    
Total liabilities                                                             49 627           50 060         48 103    
Shareholders' interest                                                        75 371           69 922         72 045    
Share capital                                                                 45 993           43 390         44 876    
Retained income                                                                2 943            2 688          2 886    
Other reserves                                                                26 435           23 844         24 283    
Non-controlling interest                                                       6 877            6 212          6 709    
Total liabilities and equity                                                 131 875          126 194        126 857    
                                                                         

STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
                                           Attributable to owners of the company                                 
                                                     Non-distributable 
                                                       reserves (NDR)               
                                      Share       Foreign                                                                         
                                    capital      currency            Non-                                 Non-                 
                                     net of   translation   distributable   Retained      Share-   controlling                
                                   treasury       reserve         reserve   earnings    holders'      interest     Total                 
                                     shares         (FCTR)           (NDR)       (RE)   interest          (NCI)   equity               
                                         Rm            Rm              Rm         Rm          Rm            Rm        Rm          
                                                                                                                            
Balance at 30 June 2016              42 329         2 602          20 736      2 628      68 295         5 871    74 166    
Total comprehensive income:                                                                                                 
- Profit after taxation                   -             -               -      4 416       4 416           360     4 776    
- Other comprehensive income              -        (1 262)              -          -      (1 262)         (629)   (1 891)    
Transactions with owners                                                                                        
recognised directly in equity:                                                                                  
Contributions by and distributions                                                                              
to owners:                                                                                                      
Shares issued                         1 057             -               -          -       1 057             -     1 057    
Transfer non-distributable         
items to NDR                              -             -           1 754     (1 754)          -             -         -    
Share-based payment transactions          4             -              23          -          27             -        27    
Dividends declared                        -             -               -     (2 602)     (2 602)         (249)   (2 851)    
Changes in ownership interest:                                                                                              
Rights issue and acquisitions - GOZ       -            (9)              -          -          (9)          859       850    
Balance at 31 December 2016          43 390         1 331          22 513      2 688      69 922         6 212    76 134    
Total comprehensive income:                                                                                                 
- Profit after taxation                   -             -               -      3 108       3 108           563     3 671    
- Other comprehensive income              -           245               -          -         245            75       320    
Transactions with owners recognised                                                                             
directly in equity:                                                                                             
Contributions by and distributions                                                                              
to owners:                                                                                                      
Shares issued                         1 476             -               -          -       1 476             -     1 476    
Transfer non-distributable         
items to NDR                              -             -             248       (248)          -             -         -    
Share-based payment transactions         10             -             (50)         -         (40)            -      (40)    
Dividends declared                        -             -               -     (2 662)     (2 662)         (253)   (2 915)    
Changes in ownership interest:                                                                                              
Rights issue and acquisitions - GOZ       -            (4)              -          -          (4)          112       108    
Balance at 30 June 2017              44 876         1 572          22 711      2 886      72 045         6 709    78 754    
Total comprehensive income:                                                                                                 
- Profit after taxation                   -             -               -      5 748       5 748           695     6 443    
- Other comprehensive income              -          (656)              -          -        (656)         (261)     (917)    
Transactions with owners recognised                                                                             
directly in equity:                                                                                             
Contributions by and distributions                                                                              
to owners:                                                                                                      
Shares issued                         1 107             -               -          -       1 107             -     1 107    
Transfer non-distributable         
items to NDR                              -             -           2 805     (2 805)          -             -         -    
Share-based payment transactions         10             -               3          -          13             -        13    
Dividends declared                        -             -               -     (2 886)     (2 886)         (266)   (3 152)    
Balance at 31 December 2017          45 993           916          25 519      2 943      75 371         6 877    82 248
      
                                                                                                          2017      2016    
                                                                                                         Cents     Cents    
Dividend per share                                                                                       101.2      95.0    


STATEMENT OF CASH FLOWS
For the six months ended 31 December 2017
                                                                           Unaudited        Unaudited        Audited    
                                                                         31 December      31 December        30 June    
                                                                                2017             2016           2017    
                                                                                  Rm               Rm             Rm    
Cash flows from operating activities                                                                                    
Cash generated from operations                                                 3 796            3 747          7 580    
Finance expense paid                                                          (1 008)          (1 187)        (2 438)    
Finance and other investment income received                                      29               55            105    
Taxation paid                                                                    (43)             (65)           (84)    
Distribution to shareholders                                                  (3 153)          (2 761)        (5 766)    
Net cash outflow from operating activities                                      (379)            (211)          (603)    
Net cash outflow from investing activities                                    (1 917)          (8 783)        (8 637)    
Net cash inflow from financing activities                                      2 331            9 165          8 993    
Net increase/(decrease) in cash and cash equivalents                              35              171           (247)    
Translation effects on cash and cash equivalents of foreign operation            (17)             (45)           (41)    
Cash and cash equivalents at beginning of period                                 613              901            901    
Cash and cash equivalents at end of period                                       631            1 027            613    


SEGMENTAL ANALYSIS
For the six months ended 31 December 2017

Segment Analysis  
The Group determines and presents operating segments based on the information that is provided internally to 
the Executive Management Committee (EXCO), the Group's operating decision-making forum. The Group comprises 
six segments, namely Retail, Office, Industrial, Growthpoint Australia, V&A Waterfront and Globalworth. 
An operating segment's operating results are reviewed regularly by Exco to make decisions about resources 
to be allocated to the segment and assess its performance, and for which discrete financial information 
is available.                                 

Segment                    Brief description of segment  
Retail                     The Growthpoint retail portfolio consists of 54 properties, comprising shopping 
                           centres with the balance being vacant land. It includes regional, community, 
                           neighbourhood, speciality and small regional shopping centres as well as 
                           retail warehouses.                              
Office                     The Growthpoint office portfolio consists of 182 properties which includes high 
                           rise and low rise offices, office parks, office warehouses, hospitals as well as 
                           mixed use properties comprising both office and retail.                        
Industrial                 The Growthpoint industrial portfolio consists of 227 properties which includes 
                           warehousing, industrial parks, retail warehousing, motor-related outlets, low 
                           and high grade industrial, high-tech industrial as well as mini, midi and maxi 
                           units, as well as mixed use properties comprising both industrial and retail.                
Growthpoint Australia      The GOZ portfolio consists of 56 properties which includes both industrial and 
                           office properties, all situated in Australia.                                        
V&A Waterfront             The V&A Waterfront is a 122 hectare mixed-use property development situated in 
                           and around the historic Victoria and Alfred Basins, which formed Cape Town's 
                           original harbour, with Table Mountain as its backdrop. Its properties include 
                           retail, office, fishing and industrial, hotel and residential as well as 
                           undeveloped bulk.     
Globalworth                The Globalworth portfolio consists of 39 properties which includes mostly 
                           modern A-grade office properties, industrial properties as well as a residential 
                           property complex concentrated in Bucharest and in Timisoara, Romania (19) 
                           and major cities in Poland (20).                                                                    

Geographic segments                                                                 
In addition to the main reportable segments, the Group also includes a geographical analysis of net property 
income, excluding straight-line lease income adjustment and investment property.    
The following geographic segments have been identified:    
- South Africa                                                                         
- Australia                                                                            
- V&A Waterfront                                                                       
- Central Eastern Europe                                                                       
                                                                                        
Profit or loss and assets and liabilities disclosure            
                                                                 Unaudited 31 December 2017                   
                                                               Total                                      Central
                                                               South               Total as         V&A   Eastern   
                             Retail    Office    Industrial   Africa   Australia   reported  Waterfront    Europe    Total
                                 Rm        Rm            Rm       Rm          Rm         Rm          Rm        Rm       Rm   
Revenue, excluding                                                                                                
straight-line lease                                                                                               
adjustment                    1 612     1 871           705    4 188       1 299      5 487         420       356    6 263    
Property-related expenses      (420)     (426)         (160)  (1 006)       (186)    (1 192)       (121)     (123)  (1 436)   
Net property income           1 192     1 445           545    3 182       1 113      4 295         299       233    4 827    
Other administrative and                                                                                          
operating overheads                                             (150)        (63)      (213)        (12)      (66)    (291)   
Equity-accounted investment                                                                                       
profit - net of tax                                              555           -        555           -        10      565    
Fair value adjustment on                                                                                          
investment property             763       544           202    1 509       1 253      2 762           -        32    2 794    
Fair value adjustments                                                                                            
(other than investment                                                                                            
property)                                                        176          65        241           -       131      372    
Capital items and                                                                                                 
other charges                                                    (70)          -        (70)         86       (52)     (36)   
Finance and other                                                                                                 
investment income                                                359           1        360          11         7      378    
Finance expense                                               (1 015)       (293)    (1 308)        (10)     (176)  (1 494)   
Consolidated profit                                                                                               
before taxation                                                4 546       2 076      6 622         374       119    7 115    
Assets                                                                                                                        
Cash and cash equivalents                                        326         305        631         395     1 191    2 217    
Trade and other receivables                                    3 011         686      3 697         101       112    3 910    
Investment property                                                                                               
classified as held for sale       -       126            34      160           -        160           -         -      160    
Derivative assets                                                695           2        697           -         -      697    
Listed investments                                                 -         722        722           -       123      845    
Fair value of                                                                                                     
property assets                                                                                                   
Acquisitions made                                                                                                 
during the year                 922         -           132    1 054         518      1 572           -     3 532    5 104    
Balance at year end          31 245    35 698        12 954   79 897      31 248    111 145       8 660     7 739  127 544    
Long-term loans granted                                          353           -        353           -         -      353    
Equity-accounted investments                                  12 142           -     12 142           -        95   12 237    
Equipment                                                          3          11         14           -         -       14    
Intangible assets                                              2 314           -      2 314           -        53    2 367    
Total assets                                                  98 901      32 974    131 875       9 156     9 313  150 344    
Liabilities                                                                                                                   
Trade and other payables                                       1 962         777      2 739         153       231    3 123    
Derivative liabilities                                           455         111        566           -         -      566    
Taxation payable                                                   -          71         71           -         4       75    
Interest-bearing borrowings                                   31 836      11 974     43 810         192     3 751   47 753    
Deferred tax liability                                         2 438           3      2 441           -       429    2 870    
Total liabilities                                             36 691      12 936     49 627         345     4 415   54 387    
                                                                                                                                       
                                                                Unaudited 31 December 2016
                                                               Total                                      Central
                                                               South               Total as         V&A   Eastern   
                             Retail    Office    Industrial   Africa   Australia   reported  Waterfront    Europe    Total
                                 Rm        Rm            Rm       Rm          Rm         Rm          Rm        Rm       Rm    
Revenue, excluding 
straight-line lease 
adjustment                    1 544     1 739           654    3 937       1 241      5 178         349         -    5 527    
Property-related expenses      (395)     (395)         (143)    (933)       (170)    (1 103)        (95)        -   (1 198)    
Net property income           1 149     1 344           511    3 004       1 071      4 075         254         -    4 329    
Other administrative 
and operating overheads                                         (135)        (61)      (196)         (9)        -     (205)    
Equity-accounted 
investment profit - 
net of tax                                                        68           -         68           -         -       68    
Fair value adjustment 
on investment property          540       436           281    1 257         329      1 586           -         -    1 586    
Fair value adjustments 
(other than investment 
property)                                                         98          34        132           -         -      132    
Capital items and 
other charges                                                    (70)        (13)       (83)          -         -      (83)    
Finance and other 
investment income                                                308           3        311          22         -      333    
Finance expense                                                 (963)       (291)    (1 254)        (10)        -   (1 264)    
Consolidated profit 
before taxation                                                3 567       1 072      4 639         257         -    4 896    
Assets                                                                                                      
Cash and cash 
equivalents                                                      653         374      1 027          36         -    1 063    
Trade and other 
receivables                                                    2 387         583      2 970         222         -    3 192    
Investment property 
classified as held 
for sale                          -       966            2       968         102      1 070           -         -    1 070    
Derivative assets                                                347           -        347           -         -      347    
Listed investments                                               382           -        382           -         -      382    
Fair value of 
property assets                      
Acquisitions made 
during the year                   -     1 168           12     1 180       3 860      5 040         312     3 813    9 165    
Balance at year end          30 035    33 782       12 247    76 064      31 529    107 593       7 965     3 813  119 371    
Long-term loans granted                                          761           -        761           -         -      761    
Equity-accounted 
investments                                                    9 627           -      9 627           -         -    9 627    
Equipment                                                          5           -          5           -         -        5    
Intangible assets                                              2 412           -      2 412           -         -    2 412    
Total assets                                                  93 606      32 588    126 194       8 223     3 813  138 230    
Liabilities                                                                                                                   
Trade and other payables                                       1 692         750      2 442         108         -    2 550    
Derivative liabilities                                           537           -        537           -         -      537    
Taxation payable                                                  (8)         68         60           -         -       60    
Interest-bearing borrowings                                   31 011      13 832     44 843         195         -   45 038    
Deferred tax liability                                         2 180          (2)     2 178           -         -    2 178    
Total liabilities                                             35 412      14 648     50 060         303         -   50 363    
                                                                                                 
                                                                  Audited 30 June 2017            
                                                               Total                                      Central    
                                                               South               Total as         V&A   Eastern   
                             Retail    Office    Industrial   Africa   Australia   reported  Waterfront    Europe    Total
                                 Rm        Rm            Rm       Rm          Rm         Rm          Rm        Rm       Rm    
Revenue, excluding 
straight-line 
lease adjustment              3 099     3 632         1 348    8 079       2 637     10 716         726       140   11 582    
Property-related                                                                                           
expenses                       (792)     (819)         (290)  (1 901)       (344)    (2 245)       (204)      (52)  (2 501)    
Net property income           2 307     2 813         1 058    6 178       2 293      8 471         522        88    9 081    
Other administrative                                                                                       
and operating overheads                                         (289)       (127)      (416)        (24)      (16)    (456)    
Equity-accounted                                                                                           
investment profit                                                                                          
net of tax                                                       369           -        369           -         -      369    
Fair value adjustment on                                                                                   
investment property             481       293           332    1 106         848      1 954         492         4    2 450    
Fair value adjustments 
(other than investment 
property)                                                         35           4         39           -         -       39    
Capital items and other 
charges                                                          (91)        (13)      (104)         (1)        8      (97)    
Finance and other 
investment income                                              1 521        (829)       692          28         4      724    
Finance expense                                               (1 944)       (566)    (2 510)          -      (108)  (2 618)    
Consolidated profit 
before taxation                                                6 885       1 610      8 495       1 017       (20)   9 492    
Assets                                                                     
Cash and cash equivalents                                        298         315        613          81     1 139    1 833    
Trade and other receivables                                    2 649         565      3 214          73        46    3 333    
Investment property 
classified as held for sale     173         -            29      202       1 039      1 241           -         -    1 241    
Derivative assets                                                356           -        356           -         -      356    
Listed investments                                               226           -        226           -         -      226    
Fair value of 
property assets                                                                                                                
Acquisitions made 
during the year                   -     1 758           116    1 874       5 047      6 921           -       192    7 113    
Balance at year end          29 415    34 732        12 557   76 704      31 497    108 201       8 705     4 200  121 106    
Long-term loans granted                                          709           -        709           -         -      709    
Equity-accounted                                                                                            
investments                                                    9 920           -      9 920           -         8    9 928    
Equipment                                                          3          12         15           -         -       15    
Intangible assets                                              2 362           -      2 362           -        52    2 414    
Total assets                                                  93 429      33 428    126 857       8 859     5 445  141 161    
Liabilities                                                                                                                   
Trade and other payables                                       1 829         743      2 572         111        51    2 734    
Derivative liabilities                                           523          64        587           -         -      587    
Taxation payable                                                  (4)         48         44           6         -       50    
Interest-bearing borrowings                                   29 492      13 076     42 568         195       559   43 322    
Deferred tax liability                                         2 332           -      2 332           -        74    2 406    
Total liabilities                                             34 172      13 931     48 103         312       684   49 099    


Distributable earnings reconciliation                                                                                      
                                                               Unaudited            Unaudited              Audited    
                                                             31 December          31 December              30 June    
                                                                    2017                 2016                 2017    
                                                                      Rm                   Rm                   Rm    
Revenue, excluding straight-line lease income adjustment           5 487                5 178               10 716    
Property-related expenses                                         (1 192)              (1 103)              (2 245)    
Other administrative and operating overheads                        (213)                (196)                (416)    
Net interest                                                        (948)                (943)              (1 818)    
Finance and other investment income                                  360                  311                  692    
Finance expense                                                   (1 308)              (1 254)              (2 510)    
GWI dividend declared after half-year end, based          
on HY18 earnings*                                                    128                    -                    -    
Antecedent dividends                                                  22                   20                   45    
Non-controlling portion of distribution                   
(excluding fair value adjustments) - GOZ                            (266)                (249)                (502)    
Distributable income from GOZ retained                    
(including NCI's portion)                                              -                    -                 (165)    
Realised foreign exchange (loss)/gain                                 (1)                  22                   31    
Current normal taxation                                              (74)                 (67)                 (98)    
Distributable earnings                                             2 943                2 662                5 548    
                                                                                                                      
                                                               Unaudited            Unaudited              Audited    
                                                             31 December          31 December              30 June    
                                                                    2017                 2016                 2017    
Distributable earnings (Rm)                                        2 943                2 662                5 548    
Net number of shares in issue                              2 906 954 088        2 802 007 024        2 860 702 595    
Distribution per share                                             101.2                 95.0                195.8    
- Interim taxable dividend (cents)                                 101.2                 95.0                 95.0    
- Final taxable dividend (cents)                                                                             100.8    
                                                                                                                      
Number of shares             
Shares issued during the period:                                                                                      
Issued ordinary shares at the beginning of the period      2 888 462 582        2 786 093 366        2 786 093 366    
Effect of shares issued                                       45 739 890           44 023 040          102 369 216    
Shares in issue at end of the period                       2 934 202 472        2 830 116 406        2 888 462 582    
Effect of treasury shares held                               (27 248 384)         (28 109 382)         (27 759 987)    
Net shares in issue at end of the period                   2 906 954 088        2 802 007 024        2 860 702 595    
* R78.0 million distribution from GWI included in finance and other investment income for FY17.
  
                                                               Unaudited            Unaudited            Unaudited    
                                                             31 December          31 December              30 June    
                                                                    2017                 2016                 2017    
                                                                   Cents                Cents                Cents    
Net asset value*                                                                                                      
Net asset value per share                                          2 593                2 495                2 518    
Tangible net asset value per share                                 2 597                2 487                2 517
    
                                                                      Rm                   Rm                   Rm    
Net asset value per share is reconciled to                  
tangible net asset value per share as follows:                             
Net asset value attributable to shareholders                      75 371               69 922               72 045    
Less: Net effect of business acquisitions                   
and other intangibles                                                127                 (234)                 (30)    
Intangible assets                                                 (2 314)              (2 412)              (2 362)    
Deferred tax liability                                             2 441                2 178                2 332    
                                                                                                                      
Tangible net asset value                                          75 498               69 688               72 015    

Key reporting ratios*   
Best practice recommendations were issued by the SA REIT Association outlining the need to provide consistent 
presentation and disclosure of relevant ratios in the SA REIT sector. This will ensure information and 
definitions are clearly presented, enhancing comparability and consistency across the sector.           
                                                                                                                    
Property cost-to-income ratio                                                                                         
Gross                                                              31.29                31.19                30.42    
Net                                                                16.82                16.82                16.56    
Based on IFRS reported figures                                     21.72                21.30                20.95    

Property cost-to-income ratio is based on the total 
property related expenses divided by the revenue, 
excluding straight-line lease income adjustments. 
The figures are adjusted for gross, net and IFRS 
reported expense.                                   
Operating cost-to-income ratio                                                                                        
Gross                                                               3.41                 3.52                 4.15    
Net                                                                 4.13                 3.79                 3.88    
Based on IFRS reported figures                                      3.88                 3.79                 3.88    

Operating cost-to-income ratio is based on the total 
operating expenses divided by the revenue, excluding 
straight-line lease income adjustments. The figures 
are adjusted for gross, net and IFRS reported expense.   
Total cost-to-income ratio                                                                                            
Gross                                                              34.70                34.71                34.00    
Net                                                                20.95                20.82                20.66    
Based on IFRS reported figures                                     25.61                25.09                24.83    

Total cost-to-income ratio is based on the total 
expenses divided by the revenue, excluding 
straight-line lease income adjustments. 
The figures are adjusted for gross, net and 
IFRS reported expense.                                                                                       
* This information has not been audited by Growthpoint's independent external auditors.

                                                               Unaudited            Unaudited            Unaudited    
                                                              six months           six months            12 months    
                                                             31 December          31 December              30 June    
                                                                    2017                 2016                 2017    
                                                                       %                    %                    %    
Interest cover ratio                                                3.46                 3.45                 3.51    
Interest cover ratio (excluding GOZ)                                3.42                 3.43                 3.43    
Interest cover ratio for Growthpoint is based on 
the operating profit excluding straight-line lease 
income adjustment plus the investment income from 
equity-accounted investments divided by the finance 
costs, after deducting finance income from banks 
and long-term loans.                               
Loan to value ratio                                                34.53                36.70                34.98    
Loan to value ratio (excluding GOZ)                                33.84                34.69                33.40    
Loan to value ratio for Growthpoint is based on the 
nominal value of debt (net of cash), divided by the 
fair value of property assets, including investment 
property held for sale, equity-accounted investments
and listed investments.     


NOTES
For the six months ended 31 December 2017

Note 1: Finance and other investment income                                                                 
                                                               Unaudited            Unaudited              Audited    
                                                              six months           six months            12 months    
                                                             31 December          31 December              30 June    
                                                                    2017                 2016                 2017    
                                                                      Rm                   Rm                   Rm    
Finance income                                                                                                        
Banks                                                                 28                   12                   23    
Long-term loans                                                       17                   22                   19    
                                                                      45                   34                   42    
Investment income                                                                                                     
Dividends received from equity-accounted investments                 287                  256                  605    
Other                                                                 28                   21                   45    
                                                                     315                  277                  650    
Total finance and other investment income                            360                  311                  692    
                                                                                                            
                                                            
Note 2: Headline earnings per share                                              
Reconciliation between basic earnings, diluted earnings and headline earnings                     
                                             Gross                                            Total                                    
                             Unaudited        Unaudited        Audited        Unaudited        Unaudited        Audited    
                            six months       six months      12 months       six months       six months      12 months    
                           31 December      31 December        30 June      31 December      31 December        30 June    
                                  2017             2016           2017             2017             2016           2017    
                                    Rm               Rm             Rm               Rm               Rm             Rm    
Profit for the year                                                               5 748            4 416          7 524    
Bargain purchase                 2 926*           1 595*         1 850*              (1)             (80)           (78)    
Fair value adjustments 
on investment property           2 926*           1 595*         1 850*          (2 845)          (1 553)        (2 397)    
Fair value adjustment: 
Net of straight-line 
lease adjustment                                                                 (2 486)          (1 431)        (1 993)    
NCI portion of fair                                      
value adjustments                                                                  (359)            (122)          (404)    
Headline earnings                                                                 2 902            2 783          5 049    
* Both the bargain purchase and fair value adjustment on investment property are included in the "Fair value 
  adjustments, capital items and other charges" line item on the statement of profit or loss and other 
  comprehensive income.

  
Note 3: Fair Value Disclosure                      
Classification of financial assets and liabilities    
                                                                            Loans and         Outside              
                                         Held for         Designated            other           scope           
                                          trading      at fair value      receivables       of IAS 39         Total    
                                               Rm                 Rm               Rm              Rm            Rm  
Assets                                                                                                                 
Unaudited six months 31 December 2017                                                                                   
Cash and cash equivalents                       -                  -              631               -           631    
Trade and other receivables                     -                  -            2 929             768         3 697    
Derivative assets                             697                  -                -               -           697    
Listed investments                              -                722                -               -           722    
Long-term loans granted                         -                353                -               -           353    
Unaudited six months 31 December 2016                                                                                  
Cash and cash equivalents                       -                  -            1 027               -         1 027    
Trade and other receivables                     -                  -            2 185             785         2 970    
Derivative assets                             347                  -                -               -           347    
Listed investments                              -                382                -               -           382    
Long-term loans granted                         -                761                -               -           761    
Audited 30 June 2017                                                                                                   
Cash and cash equivalents                       -                  -              613               -           613    
Trade and other receivables                     -                  -            2 426             788         3 214    
Derivative assets                             356                  -                -               -           356    
Listed investments                              -                226                -               -           226    
Long-term loans granted                         -                709                -               -           709    
Liabilities                                                                                                            
Unaudited six months 31 December 2017                                                                                   
Trade and other payables                        -                  -            2 395             344         2 739    
Derivative liabilities                        566                  -                -               -           566    
Taxation payable                                -                  -                -              71            71    
Interest-bearing borrowings                     -             43 810                -               -        43 810    
Deferred tax liabilities                        -                  -                -           2 441         2 441    
Unaudited six months 31 December 2016                                                                                  
Trade and other payables                        -                  -            2 151             291         2 442    
Derivative liabilities                        537                  -                -               -           537    
Taxation payable                                -                  -                -              60            60    
Interest-bearing borrowings                     -             44 843                -               -        44 843    
Deferred tax liabilities                        -                  -                -           2 178         2 178    
Audited 30 June 2017                                                                                                   
Trade and other payables                        -                  -            2 302             270         2 572    
Derivative liabilities                        587                  -                -               -           587    
Taxation payable                                -                  -                -              44            44    
Interest-bearing borrowings                     -             42 568                -               -        42 568    
Deferred tax liabilities                        -                  -                -           2 332         2 332    
                                                                                                                       

Fair value estimation                                  
Fair value measurement of assets and liabilities       
The table below includes only those assets and liabilities that are measured at fair value including non-recurring 
items measured at fair value:  

                                    Unaudited                               Unaudited                        Audited        
                                 31 December 2017                        31 December 2016                 30 June 2017      
                                        Rm                                      Rm                             Rm          
                    Fair value   Level 1   Level 2   Level 3   Fair value   Level 2   Level 3   Fair value   Level 2   Level 3    
                                                                                                                                  
Assets                                                                                                                            
Recurring fair                                                                                                        
value measurement                                                                                                     
Fair value of                                                                                                         
property assets        111 305         -         -   111 305      107 593         -   107 593      108 201         -   108 201    
Listed investments         722       722         -         -          382         -       382          226         -       226    
Long-term loans                                                                                                       
granted                    353         -         -       353          761         -       761          709         -       709    
Derivative assets          697         -       590       107          347       347         -          356       249       107    
Non-recurring fair                                                                                                    
value measurement                                                                                                     
Non-current assets                                                                                                    
held for sale              160         -         -       160        1 070         -     1 070        1 241         -     1 241    
Total assets 
measured                                                                                                 
at fair value          113 237       722       590   111 925      110 153       347   109 806      110 733       249   110 484    
Liabilities                                                                                                                       
Recurring fair                                                                                                        
value measurement                                                                                                     
Interest-bearing                                                                                                      
borrowings              43 810         -    43 810         -       44 843    44 843         -       42 568    42 568         -    
Derivative 
liabilities                566         -       535        31          537       537         -          537       556        31    
Total liabilities 
measured                                                                                            
at fair value           44 376         -    44 345        31       45 380    45 380         -       43 155    43 124        31    
The carrying amount of assets and liabilities that are not measured at fair value reasonably approximate their fair value 
due to their short-term nature. These include trade and other receivables, cash and cash equivalents and trade and 
other payables.                

Movement in level 3 instruments                                                  
                                       Unaudited                         Unaudited                         Audited             
                                       six months                        six months                        12 months            
                                     31 December 2017                 31 December 2016                   30 June 2017            
                                           Rm                               Rm                                Rm                
                                                     Long-                           Long-                             Long-    
                                         Listed       term                Listed      term                 Listed       term    
                             Property   invest-      loans    Property   invest-     loans    Property    invest-      loans     
                               assets     ments    granted      assets     ments   granted      assets      ments    granted    
                                                                                                                                
Opening balance               109 442       226        709     104 690       440       605     104 690        440        605    
Gain/(loss) from fair value                                                        
adjustments and translation                                                        
of foreign operations           1 298        10         37      (1 898)      (58)       31      (1 086)      (214)        53    
Acquisitions                    2 744         -          -       7 717         -       172       9 529          -          -    
Disposals                      (2 179)     (236)         -      (1 846)        -         -      (3 691)         -          -    
Advances                            -         -         50           -         -         -           -          -        463    
Settlements                         -         -       (443)          -         -       (47)          -          -       (412)    
Closing balance               111 305         -        353     108 663       382       761     109 442        226        709    

Valuation process                                    
A number of the Group's accounting policies and disclosures require the measurement of fair values, for both 
financial and non-financial assets and liabilities. The Group has an established control framework with 
respect to the measurement of fair values. This includes a valuation team that has overall responsibility 
for overseeing all significant fair value measurements, including level 3 fair values, and reports directly 
to the Financial Director.    

The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third-party 
information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team 
assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the 
requirements of IFRS, including the level in the fair value hierarchy in which such valuations should be classified.        

Significant valuation issues are reported to the Group's Audit Committee.   

When measuring the fair value of an asset or a liability, the Group uses observable market data as far as 
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs 
used in the valuation techniques as follows:                                                                         
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.                           
- Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, 
  either directly (i.e. as prices) or indirectly (i.e. derived from prices).   
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). 

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair 
value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair 
value hierarchy as the lowest level input that is significant to the entire measurement. 

Valuation techniques using observable inputs - Level 1 and 2 
Fair values classified as Level 1 and 2 have been determined using models for which inputs are observable 
in an active market. A valuation input is considered observable if it is obtained directly, such as quoted
prices, or indirectly, such as those derived from quoted prices.  

Valuation technique using significant unobservable inputs - level 3     
Fair values are classified at Level 3 if their determination incorporates significant inputs that are not 
based on observable market data.           

Valuation techniques and significant observable and unobservable inputs
Level 1 instruments                                                    
Listed investments       
Description                Valuation technique                        Significant observable inputs               
Industria REIT             The fair value is based on the last        Market price of AUD2.52 
                           traded market price from the               per listed share     
                           Australian Securities Exchange (ASX)      
                           as at 31 December 2017.                        
The estimated fair value would increase/(decrease) if the credit margin were lower/(higher).         

Level 2 instruments           
Interest-bearing borrowings   
Description                Valuation technique                        Significant observable inputs               
Interest-bearing           Valued by discounting future cash          Credit margins: 0.49%   
borrowings                 flows using the South African or           to 3.60% (FY17: 0.43%
                           EUR swap curve plus an appropriate         to 3.60%)
                           credit margin at the dates when the 
                           cash flows will take place.                                         
The estimated fair value would increase/(decrease) if the credit margin were lower/(higher).     

Derivative instruments  
Description                Valuation technique                        Significant observable inputs               
Forward exchange           Valued by discounting the forward          Not applicable
contracts                  rates applied at year end to the     
                           open hedged positions.
Interest rate swaps        Valued by discounting the future           Not applicable
                           cash flows using the South African
                           swap curve at the dates when
                           the cash flows will take place.
Cross-currency             Valued by discounting the future           Not applicable                              
interest rate swaps        cash flows using the basis swap 
                           curve of the respective currencies 
                           at the dates when the cash flows 
                           will take place.

Level 3 instruments 
In terms of the Group's accounting policy, at least 75% of the fair value of investment properties 
should be determined by an external, independent property valuer, having appropriate recognised 
professional qualifications and recent experience in the location and category of the property 
being valued.    

The balance of the South African portfolio was valued by Growthpoint's qualified internal valuers.    

The South African properties were valued at HY18 using the discounted cash flow of future income 
streams method by the following valuers who are all registered valuers in terms of section 19 of 
the Property Valuers Professional Act, No 47 of 2000:  

Mills Fitchet PWV     PG Mitchell            NDip (Prop Val), MIV (SA), CIEA, professional valuer                  
Eris Property Group   C Everatt              BSc (Hons) Estate management, MRICS, MIV (SA), 
                                             professional valuer    
Jones Lang LaSalle    J Karg                 BSc, MRICS, MIV (SA), professional valuer                             
Spectrum              PL O'Connell           NDip (Prop Val), professional valuer                                  
Sterling              Ali Su Greybe-Smith    BSc (Hons), MIVSA, professional associated valuer                    

The Australian properties were valued at HY18 using the discounted cash flow of future income streams 
method by Savills, Urbis, m3property, JLL, CBRE, Colliers, Knight Frank and LMW. The fair value of 
properties not externally valued as at 31 December 2017 were based solely on director valuations.     

At the reporting date, the key assumptions and unobservable inputs used by the Group in determining fair 
value were in the following ranges for the Group's portfolio of properties:    

Investment property    
                       Significant unobservable inputs and range of estimates used
                    Valuation        Discount    Exit capitalisation    Capitalisation
Description         technique        rate (%)               rate (%)          rate (%)    
Retail sector       Discounted    12.5 - 17.0            6.8 - 11.00        6.8 - 11.0    
Office sector       cash flow     13.3 - 16.0             7.5 - 10.3        7.5 - 10.0    
Industrial sector   model         13.8 - 17.0             8.0 - 12.0        8.0 - 13.4    
GOZ office                          6.8 - 9.0              6.5 - 8.5        5.3 - 13.4    
GOZ industrial                      6.8 - 8.8             6.0 - 10.0         5.8 - 8.8    

The estimated fair value would increase/(decrease) if the expected market rental growth was higher/
(lower), expected expense growth was lower/(higher), the vacant periods were shorter/(longer), the 
occupancy rate was higher/(lower), the rent-free periods were shorter/(longer), the discount rate 
was lower/(higher) and/or the reversionary capitalisation rate was lower/(higher).     

Long-term loans granted                                                   
Description                Valuation technique                        Significant unobservable inputs    
Acucap Unit                Valued by discounting future cash          Not applicable                     
Purchase Scheme            flows using the South African swap 
                           curve at the dates when the cash 
                           flows will take place.   
Roeland Street             Valued by discounting future cash          Not applicable                     
Investment 2 (Pty) Ltd     flows using a floating rate that 
                           is applicable to this loan including 
                           an estimated counter party 
                           credit spread.
OPEN                       Valued by discounting future cash          Not applicable
                           flows using the South African swap 
                           curve at the dates when the cash 
                           flows will take place.        
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