ATTACQ LIMITED - Summarised provisional consolidated financial results for the year ended 30 June 2018

Release Date: 11/09/2018 07:10
Code(s): ATT
 
Wrap Text
Summarised provisional consolidated financial results for the year ended 30 June 2018

Attacq Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/000543/06)
(JSE share code: ATT   ISIN: ZAE000177218)
(Approved as a REIT by the JSE)
(Attacq or company or group)     

SUMMARISED PROVISIONAL CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2018

Commentary

Highlights
-  Converted to a Real Estate Investment Trust (REIT)
-  Maiden distribution of 74.0 cents per share
-  Primary gross lettable area (PGLA) increased by 14.1% to 802 256m(2)
-  Interest cover ratio improved by 42.9% to 1.6 times
-  Average trading density growth of 5.3% to R2 805/m(2)
-  B-BBEE level 2 rating under the revised property sector codes

Introduction
Attacq's vision is to be a premier South African-based REIT, delivering sustainable income and capital growth through a focused
approach in investment in Waterfall City, Waterfall Logistics Hub and retail and mixed-use precincts, both in South Africa
and globally.

Attacq's business model is based on four key value drivers, namely the South African portfolio, the Waterfall development,
and investments in MAS Real Estate Inc. (MAS) and the Rest of Africa retail.

Attacq is listed on the Johannesburg Stock Exchange (JSE) and is included in the FTSE/JSE SAPY Index, FTSE/JSE All Property
Index as well as the FTSE/JSE Responsible Investment Index.

Attacq successfully converted to a REIT on 29 May 2018.

General overview
Attacq's board of directors (the board) has declared a distribution for the year ended 30 June 2018 of 74.0 cents per share.
This maiden distribution is in line with market guidance for the year under review, given in the June 2017 and December 2017
financial results announcements.

Distributable earnings increased by 280.7% to R527.4 million (2017: R138.5  million) mainly due to completed developments
generating additional rental income and lower finance charges as a result of a reduction in net debt. Net asset value per share
(NAVPS) increased by 22.2% from R19.84 to R24.24, largely due to the de-recognition of the majority of the deferred tax liability 
on REIT conversion. NAVPS growth on a like-for-like basis, excluding the impact of the deferred taxation de-recognition, would have
been 8.6% had Attacq converted to a REIT by June 2017.

A breakdown of distributable earnings per value driver is tabled below:

                                                                                     2018                        2017*
                                                                                              Cents                        Cents
 Key value driver                                                              R000       per share         R000       per share
South African portfolio                                                     321 395            45.7      128 306            18.3
Waterfall development                                                       (10 149)           (1.4)     (17 464)           (2.5)
Investment in MAS                                                           151 060            21.5      105 303            15.0
Rest of Africa retail investments                                            42 425             6.0        6 591             0.9
Other assets                                                                 22 653             3.2      (84 190)          (12.0)
Total                                                                       527 384            75.0      138 546            19.7

* Unaudited comparatives

The R42.4 million (2017: R6.6 million) distributable earnings generated through the Rest of Africa retail investments represents net
cash interest received in respect of the underlying investments.

Attacq's gross assets have increased during the year by 6.4% to R29.1 billion.
 
                                                                                                              2018           2017   
Key value driver                                                                                              R000           R000   
South African portfolio                                                                                 21 084 750     18 060 726   
Waterfall development                                                                                    2 258 698      3 840 759   
Investment in MAS                                                                                        3 145 828      2 729 308   
Rest of Africa retail investments                                                                        1 092 477      1 246 835   
Other assets                                                                                             1 496 946      1 444 563   
Total                                                                                                   29 078 699     27 322 191   

South African portfolio
Overview
Attacq has a high-quality operational portfolio of retail, office and mixed-use, light industrial and hotel properties with a weighted
average lease expiry profile of 6.8 years (2017: 6.4 years). The value of the existing South African portfolio increased to R21.1 billion
(2017: R18.1 billion), comprising 72.5% (2017: 66.1%) of total gross assets. The average growth in trading densities for the year ended
30 June 2018 was 5.3%. Based on PGLA, 63.8% of our office and mixed-use portfolio is green certified and includes PwC Tower's
silver Leadership in Energy and Environmental Design certification which is currently being finalised.

During the year, five buildings and one extension were completed in Waterfall, bringing the total South African portfolio PGLA to
802 256m(2). Attacq's attributable share of the total newly completed 118 628m(2) PGLA is 103 541m(2):

                                                                                                                     External
                                                                              Practical       PGLA    Occupancy     valuation
Property                                                                completion date       m(2)            %          R000
Waterfall City                       
PwC Tower~                                                                 October 2017     48 613         100      1 750 351
Gateway West                                                               October 2017     13 803         >79        370 809
Waterfall Corporate Campus - phase I+                                     December 2017      5 868         100        169 700
Waterfall Logistics Hub                       
BMW Group South Africa Regional Distribution Centre                       December 2017     31 987         100        289 401
Dis-Chem warehouse                                                         October 2017      8 518         100         83 329
Massbuild extension                                                       December 2017      9 839         100         78 806
Total                                                                                      118 628         >97      2 742 396
    
~ Attacq has a 75.0% ownership
+ Attacq has a 50.0% ownership

Rental income
Rental income increased by 9.4% to R2.0 billion (2017: R1.9 billion), mainly due to newly completed buildings. The five new buildings
and the Massbuild extension contributed R69.8 million to rental income, adding R58.4 million to net operating income.

Property expenses
Property expenses decreased by 2.4% or R17.6 million to R724.7 million, mainly due to non-recurring expenses relating to the Mall
of Africa which were incurred in 2017. Municipal charges increased by 5.8% to R448.6 million (2017: R423.9 million) and are included
in property expenses. The municipal charge recovery ratio increased to 92.8% (2017: 90.0%) as the Mall of Africa photovoltaic plant
came into operation during the year.

The cost-to-income ratio calculated below is based on best practice recommendations issued by the SA REIT Association. In order
to allow for comparability with other listed funds, the ratio has been adjusted for the land lease rental obligation on the Waterfall
properties.

                                                                                                           2018         2017
                                                                                                              %            %
Property gross cost-to-income ratio                                                                        32.8         38.3
Property net cost-to-income ratio                                                                          15.5         22.4

Vacancies
Overall portfolio vacancies, measured in terms of PGLA, increased by 41 669m2 when compared with 30 June 2017, mainly as a
result of PwC moving into their new head offices at Waterfall City, vacating 2 Eglin Road. Subsequent to 30 June 2018, 21 791m(2) 
of total vacant space was let, reducing the overall vacancy rate to 5.1%. Vacancies that were filled post 30 June 2018 relate mainly 
to a portion of 2 Eglin Road, Dis-Chem warehouse and Gateway West. Vacancies not yet filled refers to 2 Eglin Road, Brooklyn Bridge
Office Park and the Newtown Junction precinct.

                                                                                      2018                    2017
Sector vacancy                                                                   %        PGLA m(2)         %     PGLA m(2)
Retail                                                                         2.8            9 170       2.4         7 869
Office and mixed-use                                                          15.3           44 944       5.0        13 094
Light industrial                                                               5.3            8 518         -             -
Hotel                                                                            -                -         -             -
Portfolio vacancy                                                              7.8           62 632       3.0        20 963
Less: Vacancies filled post year end                                          (2.7)        (21 791)     (0.6)       (4 431)
Portfolio vacancy                                                               5.1          40 841       2.4        16 532
Waterfall                                                                                     4 573                   3 870
Balance of portfolio                                                                         36 268                  12 662

Valuations
The capitalisation and discount rates for the 2018 valuations remained largely unchanged when compared with the previous year.
Fair value adjustments on buildings in the South African portfolio were negatively impacted by impairments on 2 Eglin, Newtown
precinct and Brooklyn Mall. The negative fair value adjustment on Newtown precinct is due to lower rental projections whilst
Brooklyn Mall's valuation decreased due to rental income being negatively impacted by increased competition in the area.

Property valuations as at 30 June 2018 are based on external valuations performed by Sterling Valuation Specialists CC,
Eris Property Group Proprietary Limited and Wolffs Valuations Services Proprietary Limited in association with Mills Fitchet.

Waterfall development
Overview
Waterfall's location and ease of access creates an attractive value proposition for the continued development of a new city and
logistics hub in the centre of Gauteng. Waterfall has 957 008m(2) (2017: 1.0 million m(2)) of remaining developable bulk.

The total Waterfall development value, including the value of the Attacq Sanlam Properties joint venture, reduced to R2.3 billion
from R3.8 billion in the prior year. The reduction is due to the completion of five buildings, and the disposal of development rights
to joint venture partners.

                                                                                                      2018            2017
Waterfall development                                                                                 R000            R000
Development rights                                                                                 901 428       1 081 968
Infrastructure and services                                                                        685 875         737 187
Developments under construction                                                                    527 592       1 880 605
Attacq Sanlam Properties joint venture                                                             143 803         140 999
Total                                                                                            2 258 698       3 840 759

Whilst these assets are currently not contributing to distributable earnings, they create the platform for future economic benefits
through the utilisation of developable bulk in the development of new properties.

Development rights
Development rights relate to the notarially secured leasehold rights held by Attacq Waterfall Investment Company Proprietary
Limited (AWIC), a 100.0% subsidiary of Attacq.

As at 30 June 2018, AWIC had 957 008m(2) of remaining developable bulk. The heart of the development portfolio is 778 023m(2)
of remaining developable bulk in Waterfall City, zoned for retail, office, hotel and residential developments. The Logistics Hub,
well positioned for light industrial tenants, comprises 178 985m2 of remaining developable bulk. In addition, AWIC has access to
a further 686 054m(2) of developable bulk in the joint venture with Sanlam Properties, a division of Sanlam Life Insurance Limited
(Sanlam Properties).

The external valuation, performed by Sterling Valuation Specialists CC, in respect of the valuation of the Waterfall development
rights is carried out using a residual land valuation model on a freehold, fully serviced basis. The independent valuation is then
adjusted downward to take into account, inter alia, the costs required to complete the servicing of the development rights as well
as the obligations pursuant to the leasehold nature of the development rights. Development rights were fair valued downwards by
R48.9 million due to various adjustments made to the assumptions in the valuation.

Infrastructure and services
The reduction in the value of infrastructure and services, held at cost, compared to prior year is attributable to the allocation of
related costs to developments under construction.

Developments under construction
The following developments were under construction as at 30 June 2018. Attacq's attributable share of the total of 99 991m(2)
PGLA is 65 479m(2).

                                                                           Land        Anticipated       PGLA
Property                                                                 parcel    completion date      m(2)*        Pre-let %
Waterfall City                                 
Deloitte head office+                                                       10            Q3 FY20      42 500            100.0
Waterfall Corporate Campus - building 2+                                   10B            Q3 FY19       6 430                -
Waterfall Corporate Campus - Accenture+                                    10B            Q2 FY19       3 863            100.0
Waterfall Point^                                                            15            Q3 FY19       9 356    25.0 pre-sold
The Ingress - phase I                                                       10            Q2 FY20       8 731             50.1
Waterfall Logistics Hub                               
Cummins South Africa's regional office+                                      9            Q2 FY19      16 232            100.0
Pirtek^^                                                                     8            Q3 FY19       2 926         Pre-sold
Superga/Kappa warehouse                                                      8            Q4 FY19       4 657            100.0
Midi warehouse                                                               8            Q3 FY19       5 296                -
Total                                                                                                  99 991            >75.0
                               
* Estimated PGLA for 100.0% of development. Subject to change upon final re-measurement post completion
+ Attacq has a 50.0% ownership
^ Two of the four buildings are classified as inventory, one building has been sold and one building is held as investment property
^^ Classified as inventory

The valuations as at 30 June 2018 are based on external valuations performed by Sterling Valuation Specialists CC and Wolffs
Valuations Services Proprietary Limited in association with Mills Fitchet.

The Deloitte head office development is a 50/50 joint venture between Attacq and Atterbury Property Holdings Proprietary
Limited and its subsidiaries (Atterbury Group). Upon completion in Q3 FY20, Waterfall City and surrounds including the Mall of
Africa are expected to further benefit from the anticipated foot traffic of approximately 3 500 Deloitte staff members who will
occupy the completed Deloitte head office.

Attacq classified 50.0% of the development rights as well as infrastructure and service costs relating to Cummins South Africa's
regional office as held for sale due to the 50/50 joint venture arrangement between Attacq and Zenprop Property Holdings
Proprietary Limited (Zenprop). The 30 June 2018 value of R63.4 million will be converted to cash on transfer of the development
rights to Zenprop, as co-owner.

Attacq commenced with the development of a 2 926m(2) warehouse for Pirtek Southern Africa Proprietary Limited (Pirtek) at an
estimated cost of R28.0 million. In order to take advantage of economies of scale, two speculative midi warehouses of 4 657m(2)
and 5 296m(2) are being developed at the same time, at an estimated cost of R41.0 million and R46.0 million respectively. One of
the midi warehouses has successfully been let to Superga/Kappa. Attacq has had previous success with speculative warehouses
as evidenced by both the Dimension Data and Dis-Chem occupancy.

Development pipeline
The Atria - land parcel 10
Attacq and Barrow Properties Proprietary Limited (Barrow Properties) have established a 50/50 joint venture to develop the Atria,
a mixed-use precinct adjacent to the Mall of Africa which comprises four office buildings and a hotel. The initial precinct's design
has been revised, resulting in the removal of the residential component and increasing the hospitality and office components. The
total PGLA is estimated at 32 000m(2) at an estimated total development cost of R840.0 million. The construction of the super-
basement has commenced. Construction of the top structure will be in a phased approach subject to leasing. Transfer to Barrow
Properties is pending and R46.7 million is classified as held for sale.

Waterfall Corporate Campus - land parcel 10B
Waterfall Corporate Campus is a 50/50 joint venture with Zenprop, with an approximate total development cost of R870.0 million.
The development on completion, will comprise six multi-tenanted office buildings with an estimated total PGLA of 30 000m(2).
Phase I, building 1 (5 868m(2) of PGLA) was completed in December 2017 and is fully tenanted. The construction of phase II, which
consists of two buildings and the communal area, will be completed during the second and third quarter of the 2019 financial year.
One of the two buildings will be fully tenanted by Accenture SA Proprietary Limited (Accenture).

The Ingress - land parcel 10
Attacq commenced with phase I of a five building office development known as The Ingress. The development is located adjacent
to the Novartis building and across the road from Gateway West on land parcel 10. Phase I comprises of two buildings, with building
one being fully tenanted. The total PGLA of phase I will be approximately 8 700m(2) and the remainder will be approximately
11 700m(2) (20 400m(2) in total). Total development cost is estimated at R570.0 million.

Ellipse - land parcel 10
Attacq intends to roll out residential developments to create a "live, work, play" urban environment in Waterfall City. The proposed
inaugural residential development will comprise four towers of approximately 550 residential units on land parcel 10, west of the
Mall of Africa. The development will be undertaken on a 50/50 joint venture basis in a phased approach. Phase I will consist of two
towers of approximately 250 units. The estimated development cost of R450.0 million for phase I includes infrastructure that will
benefit phase II. The commencement of the development is subject to achieving a certain level of pre-sales.

BMW X Lifestyle Park - land parcel 10
Attacq is developing a BMW X Lifestyle Park in Waterfall City for BMW Group South Africa. The park is located on the southern
side of the Mall of Africa and comprises a multi-functional event space to be used for promotional events and an off-road track
designed to showcase the abilities of BMW's X models. The initiative will create an additional attraction in the city.

Zimmer Biomet - land parcel 8
Attacq, in a 50/50 joint venture with Sanlam Properties, commenced post year-end with the development of a warehouse with
adjoining offices, measuring 4 000m(2) of PGLA, for Zimmer Biomet. The total capital cost for the project is R55.3 million with an
estimated date of completion of June 2019. Attacq classified 50.0% of the value of the development rights as well as infrastructure
and service costs relating to Zimmer Biomet as held for sale as transfer is pending to Sanlam Properties.

Investment in MAS
Overview
Attacq's shareholding in MAS reduced to 22.8% (2017: 30.6%). This was as a result of two large capital raisings undertaken by
MAS in which Attacq did not participate due to the company preferring to deploy surplus cash into its Waterfall development and
reducing interest-bearing debt at a group level. The market value of Attacq's investment, using the 30 June 2018 MAS share price
of R21.00 (2017: R23.50) equates to R3.1 billion (2017: R3.5 billion). During the year, Attacq received cash dividends of R151.0 million
(2017: R105.3 million), which represents a 4.9% income return based on the 30 June 2018 market value.

Attacq's equity accounted investment at 30 June 2018 is R3.1 billion (2017: R2.7 billion). The net increase is due to MAS' NAVPS
increasing by 7.6% from 124.5 euro cents per share to 134.0 euro cents per share plus a 7.1% weakening of the rand against the euro,
offset by a total of 6.77 euro cents per share in dividends being paid by MAS during the financial year.

MAS' income producing portfolio achieved a 34.8% increase in net rental income to EUR32.3 million and generated net operating
income of EUR38.3 million to June 2018, representing year-on-year growth of 89.6%. Investment property, including assets held
for sale, increased by 10.9% to EUR632.8 million from EUR570.6  million with a further EUR120.0  million of assets acquired post
year-end.

MAS has revised its prior distribution growth guidance for 2019 of 30.0% to 15.0%. The prior distribution target was premised on the
active deployment of capital raising proceeds into income-accretive acquisitions and developments. The markets MAS operates in
have become progressively more competitive resulting in a slower than anticipated drawdown of available funds.

MAS' secured Prime Kapital development pipeline in Central and Eastern Europe (CEE) totals EUR755.0 million and includes
the planned redevelopment of Era Shopping Mall in Iasi, Romania into the 100 000m(2) Mall of Moldova, the development of two
regionally dominant malls totalling 81 000m(2), a number of value centre developments, two residential developments in permitting
phase and Tera Iasi, a large scale mixed-use development planned to include up to 100 000m(2) of A grade offices, approximately
2 500 residential units and a hotel.

MAS has a well-funded balance sheet, a strong development and acquisition pipeline and access to an experienced development
partner with an exemplary track record in CEE.


Rest of Africa retail investments
Overview
As at 30 June 2018, Attacq's Rest of Africa investments are held via its:
-  25.0% shareholding in Gruppo Investment Nigeria Limited (Gruppo), the owner of Ikeja City Mall, located in Lagos, Nigeria; and
-  31.8% shareholding in AttAfrica, which is invested in four retail properties in Ghana and one retail property in Zambia.

As at 30 June 2018, the value of Attacq's Rest of Africa retail investments was R1.1 billion comprising 3.8% (2017: 4.6%) of its total
gross assets. In June 2017, the value totalled R1.2 billion and included Attacq's investment in The Grove Mall of Namibia, which was
disposed of in May 2018. The proceeds of R191.9 million were utilised to reduce interest-bearing debt.

As at 30 June 2018, the group's equity accounted investment into Gruppo totalled R305.1 million (2017: R286.5 million). The net
increase in the investment value is due to the 5.1% weakening of the rand against the US dollar, offset by an impairment of
R25.2 million.

Attacq's investment in AttAfrica, through its shareholder loan, amounted to R787.3 million (2017: R776.2 million), being its gross
loan of R953.9 million (2017: R908.5 million), net of an aggregate impairment of R166.6 million (2017: R132.3  million). AttAfrica
repaid an amount of R99.3 million comprising capital and interest during the year to Attacq, using funds generated by the external
refinancing of Accra Mall. An impairment of R25.9 million was recognised against the loan in the current year (2017: R82.8 million)
due to the increase in the negative net asset value position of AttAfrica.

AttAfrica capital structure
Currently Attacq is not receiving regular cash distributions from AttAfrica, due to the unfavourable trading conditions and as a
consequence of the capital structure of Attacq's investment in AttAfrica. The capital structure, inter alia, gives Attacq a 31.8%
shareholding in AttAfrica which is in excess of its obligation to contribute 25.0% of the funding requirements and therefore Attacq
has a share of any capital growth in the underlying portfolio in excess of its capital contributions. However, Hyprop Investments
Limited has first right to operational income flows generated by the portfolio, resulting in irregular cash distributions to Attacq.
AttAfrica shareholders are investigating options to create liquidity in the portfolio in advance of the June 2020 shareholder liquidity
event. Failing to do so, the existing capital structure will be restructured.

Malls and performance
At 30 June 2018, the retail properties in which Attacq has an interest, together with the vacancy rates were as follows:

                                                                                                                Attacq's
                                                                                   Vacancy %     Vacancy %     effective
Property                                  Location        Owner     PGLA m(2)           2018          2017    interest %
Manda Hill                          Lusaka, Zambia    AttAfrica        42 002            4.1           5.4          15.9
Accra Mall                            Accra, Ghana    AttAfrica        21 311            6.8             -          15.0
West Hills Mall                       Accra, Ghana    AttAfrica        28 272           10.4           5.3          14.3
Achimota Retail Centre                Accra, Ghana    AttAfrica        15 534            1.9           6.1          23.9
Kumasi City Mall                     Kumasi, Ghana    AttAfrica        18 604           13.0          26.5          23.9
Ikeja City Mall                     Lagos, Nigeria       Gruppo        22 223            3.1             -          25.0

Ghana's economy has favourable growth prospects and a general improvement in trading performance was evident. The
replacement of the second anchor at West Hills Mall and Achimota Retail Centre with Game is expected to impact both malls
positively once opened in November 2018. Manda Hill in Zambia was impacted by filling vacancies at lower rental levels during
the year. Whilst still challenging, trading conditions in Nigeria are improving off the back of moderating inflation, improved oil
production and an increase in the availability of foreign exchange.

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

Financial position
Investments
Investments in and loans to associates and joint ventures reduced from June 2017 (R5.1 billion) to June 2018 (R4.9 billion) and relate
mainly to movements in the MAS and AttAfrica investments as detailed above.

Other financial assets comprise mainly of the R331.7 million (2017: 243.1 million) loan provided to the co-owners of the PwC Tower.
The loan carries similar terms and conditions to the debt raised by AWIC in respect of the development and is serviced monthly
from the property's rental income. The Atterbury Group loan, with a 30 June 2017 outstanding balance of R177.2 million, was settled
in January 2018.

A breakdown of investments is shown below:
                                                        
                                                                                                      2018           2017   
Equity and loan accounts                                                                              R000           R000   
Associates and joint ventures                                                                                               
MAS                                                                                              3 145 828      2 729 308   
AttAfrica                                                                                          787 304        776 246   
Gruppo                                                                                             305 173        286 504   
Attacq Sanlam properties joint venture                                                             143 803        140 999   
Attacq Equites joint venture                                                                        91 063         91 384   
Other financial assets                                                                                                      
PwC Waterfall property partners                                                                    331 726        243 069   
Wingspan                                                                                            40 121         54 617   
Nova Eventis                                                                                         2 947        197 677   
The Grove Mall of Namibia                                                                                -        184 085   
Atterbury Group                                                                                          -        177 239   
Artisan                                                                                                  -        145 457   
Other                                                                                               46 144         69 558   
Total                                                                                            4 894 109      5 096 143   


Assets held for sale
                                                                                                      2018           2017
                                                                                                      R000           R000
Brooklyn Bridge Office Park                                                                              -        553 000
The Atria/Barrow Properties                                                                         46 668         50 025
Cummins South Africa's regional office/Zenprop                                                      63 372              -
Stenham European Shopping Centre Fund Limited (Stenham)                                              2 947        197 677
Rainprop Proprietary Limited                                                                           775            781
Zimmer Biomet/Sanlam Properties                                                                      5 109              -
Total                                                                                              118 871        801 483

The disposal of the Nova Eventis regional shopping centre in Leipzig, Germany, held by Stenham, was implemented and the
majority of the proceeds were received in July 2017 and November 2017. Brooklyn Bridge Office Park remains a non-core asset and
the group is still actively seeking a potential buyer. The asset has been reclassified to investment property as a highly probable sale
may not materialise in the next 12 months.

Funding
Total interest-bearing borrowings net of cash decreased by 2.6% to R9.9 billion compared with 30 June 2017 (R10.1 billion). Gearing,
calculated as total interest-bearing debt less cash on hand as a percentage of total assets, improved from 37.1% in June 2017 to
35.8% in June 2018. The improved gearing is as a result of an increase in cash on hand accumulated during the financial year and
an increase in the gross asset value of assets. During the financial year, Attacq converted the majority of its debt facilities to an
interest-only profile.

In order to mitigate interest rate risk, as at 30 June 2018, approximately 95.0% (2017: 90.8%) of total committed facilities of
R11.7 billion (2017: R12.0 billion) were hedged by way of fixed interest rate loans or interest rate swaps which is higher than the
group's minimum hedging policy. The weighted average cost of funding improved over the last year to 8.7% (2017: 9.2%). This is
due to a combination of a decrease in the JIBAR rates over the past 12 months and the restructure of the debt. The interest cover
ratio improved to 1.6 times (2017: 1.1 times) as a result of both an increase in income and a reduction in finance charges.

A total of R541.8 million (2017: R2.6 billion) of the group's interest-bearing debt is due for repayment over the next 12 months.
During the past year, Attacq successfully refinanced R5.7 billion of debt, including its Attacq Retail Fund Proprietary Limited and
Lynnwood Bridge Office Park Proprietary Limited portfolios and euro denominated debt. Notwithstanding that only half of the
debt secured by the portfolios was due to expire in May 2018, the group refinanced the entire amount early in order to extend the
tenure of its loan book and take advantage of favourable pricing. Attacq used the refinance opportunity to introduce three new
institutional lenders to the group.

A decrease in other financial liabilities of R41.3 million (2017: negative R136.9 million) was recorded on the mark-to-market valuation
of interest rate swaps.

Prospects
South Africa is in a phase of low economic growth resulting in both constrained consumer spend and corporate expansion.
The current weak property fundamentals provide headwinds to the sector.

Attacq's retail portfolio has proven defensive qualities evidenced by average annual trading density growth of 5.3% under
challenging conditions. This portfolio should continue to provide sustainable growth in distributable earnings.

Notwithstanding the difficult market conditions, the development of Waterfall is expected to continue, albeit at a slower pace.
The location, as evidenced by existing and secured future tenants, remains an attractive proposition for corporates considering
office consolidations and new, modern, green-rated premises.

On the international front, Attacq expects to benefit from increasing distributions from its MAS investment underpinned by MAS'
income-generating investments and its acquisition and development pipeline. Attacq is not pursuing any further acquisitions or
expansions in the rest of Africa.

Attacq will continue to explore opportunities to recycle capital with a view to the redeployment of funds into earnings accretive
developments and the reduction of debt.

Attacq has elected to adopt distribution per share as its relevant financial performance measurement due to its conversion to a
REIT.

Attacq is targeting distribution growth of between 7.5% and 9.5% for the 2019 financial year and between 13.0% and 15.0% for the
2020 financial year. This is based on the following assumptions:
-  Achieving forecasted rental income based on contractual terms and anticipated market-related renewals
-  The expected roll-out of the current and budgeted development portfolio
-  MAS achieving its revised distribution target as communicated on 7 September 2018
-  No unforeseen circumstances such as major corporate tenant failures or macro-economic instability

The prospects have not been reviewed or reported on by Attacq's auditors.

These revised targets are lower than the 20.0% distribution growth per annum for 2019 and 2020 as previously communicated.
The original distribution targets have been revised as a consequence of the prevailing economic conditions which have negatively
impacted the timing of planned disposals of non-core assets and the roll out of development activity. In addition, the guidance has
been revised due to lower than expected MAS distributions for 2019 as well as lower than expected cash receipts of interest on
shareholder loans from the Rest of Africa retail investments. In this respect, the revised targets exclude shareholder loan interest
accrued but not received. Management has made the decision not to provide a guidance for the 2021 financial year due to the
increased uncertainty in the macro-economic environment.

Declaration of a cash dividend
The board declared a final cash dividend of 74.00000 cents per share, for the year ended 30 June 2018, out of the company's
distributable income.

The dividend is payable to Attacq shareholders in accordance with the timetable set out below:                                2018
Last day of trade in order to be eligible to receive the cash dividend                                          Tuesday, 2 October
Shares trade ex-dividend                                                                                      Wednesday, 3 October
Record date to receive the cash dividend                                                                         Friday, 5 October
Accounts credited by CSDP or broker to dematerialised shareholders with cash dividend payment                    Monday, 8 October
Cash dividend payment to certificated shareholders deposited on or about                                         Monday, 8 October

Notes:
1.  Shares may not be dematerialised or rematerialised between Wednesday, 3 October 2018 and Friday, 5 October 2018 both days
    inclusive.
2.  Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend of 74.00000
    cents will be held in trust by the transfer secretaries pending receipt of the relevant certificated shareholder's banking details
    whereafter the cash dividend will be paid via electronic transfer into the personal bank accounts of certificated shareholders.

In accordance with Attacq's status as a REIT with effect from 29 May 2018, 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 dividend on the shares will be deemed to be a taxable dividends for South African tax purposes in terms of section 25BB
of the Income Tax Act.

Tax implications for South African resident shareholders
The dividend 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 income tax (in terms of the exclusion to the general dividend exemption, contained in paragraph
(aa) of section 10(1)(k)(i) of the Income Tax Act) because it is a dividend distributed by a REIT. This dividend is, however, exempt
from dividend withholding tax in the hands of South African tax resident shareholders, provided that the South African resident
shareholders provide the following forms to their 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)  A declaration that the dividend is exempt from dividends tax.
b)  A written undertaking to inform the CSDP, broker or the company, as the case may be, should the circumstances affecting the
    exemption change or the beneficial owner cease to be the beneficial owner, 

both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are advised to contact their CSDP, 
broker or the company, as the case may be, to arrange for the above-mentioned documents to be submitted prior to payment of the dividend, 
if such documents have not already been submitted.

Tax implications for non-resident shareholders
Dividends received by non-resident shareholders will not be taxable as income and instead will be treated as an ordinary dividend
which is exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. Any
distribution received by a non-resident from a REIT will be subject to dividend withholding 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 shareholder. Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to
non-resident shareholders is 59.20000 cents per share. A reduced dividend withholding 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)  A declaration that the dividend is subject to a reduced rate as a result of the application of a DTA.
b)  A written undertaking to inform their 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 for the South African Revenue Service. Non-resident shareholders are advised to contact 
their CSDP, broker or the company, as the case may be, to arrange for the above-mentioned documents to be submitted prior to payment of 
the dividend if such documents have not already been submitted, if applicable.

The number of shares in issue as at the date of declaration is 749 582 777 ordinary shares of no par value which includes 46 427 553
treasury shares. Attacq's tax reference number is 9241/038/64/6.

Subsequent events
In line with IAS 10 Events after the reporting period, the declaration of the dividend occurred after the year-end, resulting in a
non-adjusting event which is not recognised in the financial statements. There are no further subsequent events noted.

Commitments
Please refer to developments under construction and developments in the pipeline for future capital commitments. Future
commitments will be funded by undrawn banking facilities, cash on hand and proceeds from capital recycling activities.

Issue of shares
During the year, 340 000 shares were issued in terms of long-term incentive awards.

Change in directors
Effective 1 July 2017, Louis van der Watt resigned from the board as a non-executive director. Morne Wilken resigned from the
board as chief executive officer (CEO) with effect from 31 December 2017, in order to take up the CEO position of MAS. The board
appointed Melt Hamman, the then chief financial officer (CFO), as CEO on 19 June 2018. Raj Nana has been appointed as CFO
and Jackie van Niekerk as chief operating officer (COO), joining the board on 19 June 2018. Ipeleng Mkhari was appointed as
independent non-executive director from 15 March 2018.

Basis of preparation and accounting policies
The summarised provisional consolidated financial statements for the year ended 30 June 2018 have been prepared in accordance
with the JSE Listings Requirements applicable to summarised provisional reports and the requirements of the Companies Act,
No. 71 of 2008 applicable to summarised financial statements. The JSE Listings Requirements require provisional reports to
be prepared in accordance with the framework concepts and the measurement and recognition requirements of International
Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee
and Financial Pronouncements as issued by the Financial Reporting Standards Council, and to also, as a minimum, contain the
information required by IAS 34: Interim Financial Reporting.

This report together with the preparation of the consolidated financial statements were compiled under the supervision of Raj Nana
CA(SA), CFO of Attacq.

The accounting policies applied in the preparation of the summarised consolidated financial statements are in terms of IFRS and
are consistent with the accounting policies applied in the preparation of the previous consolidated financial statements, with the
exception of the adoption of new and revised standards which became effective during the year. These standards did not have any
material impact on the financial statements.

Fair value disclosure
The group's investment properties were externally valued by independent valuers. In terms of IAS 40: Investment Property and
IFRS 7: Financial Instruments: Disclosure, the group's investment properties are measured at fair value and are categorised as level
3 investments. The valuation of investment properties requires judgement in the determination of future cash flows from leases and
an appropriate capitalisation rate which varies between 6.25% and 9.75% (2017: 6.25% and 9.75%). Changes in the capitalisation rate
attributable to changes in market conditions can have a significant impact on property valuations. A 50.0 basis points weakening in
the capitalisation rate will decrease the value of investment properties by R665.1 million (2017: R640.5 million). A 50.0 basis points
improvement in the capitalisation rate will increase the value of investment properties by R740.7 million (2017: R746.2  million).
Changes in the discount rate attributable to changes in the underlying risk profile associated with the property portfolio can
have a significant impact on property valuations. A 50.0 basis points weakening in the discount rate will decrease the value of
investment properties by R589.4 million (2017: R557.7 million). A 50.0 basis points improvement in the discount rate will increase
the value of investment properties by R594.4 million (2017: R592.1 million). In terms of IAS 39: Financial Instruments: Recognition
and measurement and IFRS 7, the group's currency and interest rate derivatives as well as the equity derivative are measured
at fair value through profit or loss and are categorised as level 2 investments. Unlisted investments are categorised as level 3.
There were no transfers between levels 1, 2 and 3 during the year. The valuation methods applied are consistent with those applied
in preparing the previous consolidated financial statements. This announcement does not include all the information required
pursuant to paragraph 16A(j) of IAS 34. The group's audited consolidated financial statements is available on the issuer's website,
at the issuer's registered offices and upon request.

Audit report
The auditor, Deloitte & Touche, has issued its opinion on Attacq's audited consolidated financial statements for the year ended
30 June  2018. The audit was conducted in accordance with International Standards on Auditing. Deloitte & Touche has issued
an unmodified opinion. A copy of the auditor's report together with a copy of the audited consolidated financial statements is
available for inspection at the company's registered office and on the company's website (www.attacq.co.za/investors-home/).

These summarised provisional consolidated financial statements have been derived from the group's audited consolidated financial
statements and are consistent in all material respects with the group's audited consolidated financial statements for the year
ended 30 June 2018, but are not themselves audited. The directors take full responsibility for the preparation of these summarised
provisional consolidated financial results and confirm that the financial information has been correctly extracted from the underlying
audited consolidated financial statements. Any reference to future financial information included in this announcement has not
been reviewed or reported on by the auditor. The auditor does not necessarily report on all the information contained in this
announcement. Shareholders are advised that, in order to obtain a full understanding of the nature of the auditor's engagement,
they should obtain a copy of that report together with the audited consolidated financial statements as at 30 June 2018 from the
company's registered office or from the company's website.

On behalf of the board



P Tredoux                                                                       M Hamman
Chairman                                                                        CEO

10 September 2018


Summarised consolidated statement of financial position
                 
                                                                                                                        Audited           Audited
                                                                                                                        30 June           30 June
                                                                                                                           2018              2017
                                                                                                                           R000              R000
ASSETS                                                                
Non-current assets                                                                
Property and equipment                                                                                                   42 667            52 272
Investment properties                                                                                                21 234 085        19 735 365
  Per valuation                                                                                                      22 166 318        20 536 861
  Straight-line lease debtor                                                                                          (932 233)         (801 496)
Straight-line lease debtor                                                                                              932 233           801 496
Deferred initial lease expenditure                                                                                        9 275             7 666
Intangible assets                                                                                                       266 502           290 539
Goodwill                                                                                                                 67 774            67 774
Investment in associates and joint ventures                                                                           3 328 852         3 153 392
Other financial assets                                                                                                  373 651           304 368
Other investments                                                                                                           488            11 941
Deferred tax assets                                                                                                          11             3 329
Total non-current assets                                                                                             26 255 538        24 428 142
Current assets                                                                
Taxation receivable                                                                                                       2 714               951
Trade and other receivables                                                                                             212 563           174 623
Inventory                                                                                                                42 484            25 278
Loans to associates and joint ventures                                                                                1 190 590         1 250 278
Other financial assets                                                                                                   16 308           193 590
Cash and cash equivalents                                                                                             1 239 631           447 846
Total current assets                                                                                                  2 704 290         2 092 566
Non-current assets held for sale                                                                                        118 871           801 483
Total assets                                                                                                         29 078 699        27 322 191
EQUITY AND LIABILITIES                                                                
Equity                                                                
Stated capital                                                                                                        6 460 108         6 456 633
Distributable reserves                                                                                                9 544 296         6 945 483
Available-for-sale reserve                                                                                              279 845           282 329
Share-based payment reserve                                                                                             117 390           128 216
Foreign currency translation reserve                                                                                    744 701           238 254
Acquisition of non-controlling interests reserve                                                                      (104 215)         (104 215)
Equity attributable to owners of the holding company                                                                 17 042 125        13 946 700
Non-controlling interests                                                                                                16 705          (43 087)
Total equity                                                                                                         17 058 830        13 903 613
                   
Non-current liabilities                   
Long-term borrowings                                                                                                 10 527 029         7 976 110
Deferred tax liabilities                                                                                                178 924         1 932 140
Other financial liabilities                                                                                             127 869           164 696
Cash settled share-based payments                                                                                           559             1 496
Finance lease obligation                                                                                                 88 914            83 150
Total non-current liabilities                                                                                        10 923 295        10 157 592
Current liabilities                                             
Other financial liabilities                                                                                              74 060           137 145
Taxation payable                                                                                                          1 496             7 665
Cash settled share-based payments                                                                                           747             1 684
Trade and other payables                                                                                                403 550           501 380
Provisions                                                                                                               32 196             2 777
Short-term portion of long-term borrowings                                                                              584 525         2 279 802
Total current liabilities                                                                                             1 096 574         2 930 453
Liabilities directly associated with non-current assets held for sale                                                         -           330 533
Total liabilities                                                                                                    12 019 869        13 418 578
Total equity and liabilities                                                                                         29 078 699        27 322 191
                   
The following information does not form part of the statement of financial position                 
Net asset value per share                 
Net asset value per share (cents)                                                                                         2 424             1 984
Net asset value per share adjusted for deferred tax (cents)                                                               2 449             2 259
 
                
Summarised consolidated statement of profit and loss and other comprehensive income                 
                 
                                                                                                                        Audited           Audited
                                                                                                                        30 June           30 June
                                                                                                                           2018              2017
                                                                                                                           R000              R000
Gross revenue                                                                                                         2 138 961         2 060 895
   Rental income                                                                                                      2 035 494         1 861 093
   Straight-line lease income adjustment                                                                                103 467           199 802
Property expenses                                                                                                     (724 726)         (742 277)
Net rental income                                                                                                     1 414 235         1 318 618
Sale of inventory                                                                                                        29 865                 -
Cost of sales                                                                                                          (24 918)                 -
Other income                                                                                                            157 675            60 463
Operating and other expenses                                                                                          (322 918)         (585 730)
Operating profit                                                                                                      1 253 939           793 351
Amortisation of intangible asset                                                                                       (24 037)          (22 060)
Fair value adjustments                                                                                                  370 265           527 581
   Investment properties                                                                                                328 970           664 525
   Other financial assets and liabilities                                                                                41 295         (136 944)
Gain on available-for-sale financial assets                                                                              35 750                 -
Net income from associates and joint ventures                                                                            81 706           249 880
Investment income                                                                                                       194 447           189 536
Finance costs                                                                                                         (950 501)         (987 411)
Profit before taxation                                                                                                  961 569           750 877
Income tax credit (expense)                                                                                           1 749 765         (150 599)
   Current taxation                                                                                                    (21 911)         (100 576)
   Deferred taxation                                                                                                  1 771 676          (50 023)
Profit for the year                                                                                                   2 711 334           600 278
Attributable to:                                                    
   Owners of the holding company                                                                                      2 651 542           630 164
   Non-controlling interests                                                                                             59 792          (29 886)
Other comprehensive income                                                    
Items that will be reclassified subsequently to profit and loss                                                    
Gain (loss) on available-for-sale financial assets                                                                       27 686         (117 827)
Taxation relating to components of other comprehensive income                                                                 2          (11 269)
Realisation of available-for-sale financial assets                                                                     (32 336)                 -
Other comprehensive loss for the year net of taxation                                                                   (4 648)         (129 096)
Total comprehensive income for the year                                                                               2 706 686           471 182
Attributable to:                                                    
Owners of the holding company                                                                                         2 646 894           501 068
Non-controlling interests                                                                                                59 792          (29 886)
                                                    
Earnings per share                                                    
Basic (cents)                                                                                                             377.2              89.7
Diluted (cents)                                                                                                           374.2              89.0
  
               
Reconciliation between earnings and headline earnings                 
                                                     
                                                                                                                        Audited           Audited
                                                                                                                        30 June           30 June
                                                                                                                           2018              2017
                                                                                                                           R000              R000
Profit for the year                                                                                                   2 651 542           630 164
  Headline earnings adjustments                                                                                       (426 476)         (468 558)
  Profit on disposal of subsidiary                                                                                      (5 633)          (35 695)
  Loss on disposal of other investments                                                                                   2 612                 -
  Profit on disposal of investment property                                                                            (14 947)          (15 217)
  Impairment of associates and other investments                                                                         51 197           244 540
  Realisation of available-for-sale financial assets                                                                   (35 750)                 -
  Fair value adjustments                                                                                              (370 265)         (527 581)
  Net income from associates and joint ventures                                                                        (33 270)         (249 880)
  Tax effect of adjustments                                                                                               4 975           123 110
  Non-controlling interests' share                                                                                     (25 395)           (7 835)
                                                      
Headline earnings                                                                                                     2 225 066           161 606
Number of shares in issue*                                                                                          703 155 224       702 815 224
Weighted average number of shares in issue*                                                                         702 989 909       702 389 882
Diluted weighted average number of shares in issue*                                                                 708 584 902       708 079 085
Headline earnings per share                                                      
  Basic (cents)                                                                                                           316.5              23.0
  Diluted (cents)                                                                                                         314.0              22.8
                 
*Adjusted for 46 427 553 treasury shares (2017: 46 427 553)                                                     
  
               
Summarised consolidated statement of cash flows                 
                 
                                                                                                                        Audited          Audited
                                                                                                                        30 June          30 June
                                                                                                                           2018             2017
                                                                                                                           R000             R000
Cash flow generated from operating activities                                                                           380 762          124 022
  Cash generated from operations                                                                                      1 019 788        1 033 295
  Investment income                                                                                                     290 129          119 368
  Finance costs                                                                                                       (899 312)        (934 930)
  Taxation paid                                                                                                        (29 843)         (93 711)
Cash flow (utilised in) generated from investing activities                                                           (119 105)          310 427
  Property and equipment acquired                                                                                       (2 874)         (27 319)
  Property and equipment disposed                                                                                           284                -
  Investment properties acquired                                                                                      (738 927)      (1 098 009)
  Investment properties disposed                                                                                         62 584           50 017
  Associates and joint ventures acquired                                                                                (2 667)         (36 227)
  Associates and joint ventures disposed                                                                                253 977          744 845
  Other investments disposed                                                                                             11 969                -
  Other financial assets repaid (raised)                                                                                 98 074        (175 041)
  Additions to deferred initial lease adjustments                                                                       (3 804)          (4 845)
  Cash flow relating to non-current assets held for sale                                                                202 279          857 006
Cash flow generated from (utilised in) financing activities                                                             530 128        (423 884)
  Capital raised                                                                                                          3 475           13 828
  Settlement of share-based payment                                                                                    (13 678)          (2 097)
  Long-term borrowings raised                                                                                         3 358 695        2 355 304
  Long-term borrowings repaid                                                                                       (2 895 275)      (3 254 770)
  Loans to associates and joint ventures repaid                                                                         130 649          468 643
  Other financial liabilities repaid                                                                                   (53 738)          (4 792)
Total cash movement for the year                                                                                        791 785           10 565
Cash at the beginning of the year                                                                                       447 846          437 281
Total cash at the end of the year                                                                                     1 239 631          447 846


Summarised consolidated statement of changes in equity

                                                                                               Acquisition       Equity
                                                                                    Foreign        of non- attributable
                                                     Available-    Share-based     currency    controlling to owners of          Non-
                             Stated  Distributable     for-sale        payment  translation      interests  the holding   controlling       Total
                            capital       reserves      reserve        reserve      reserve        reserve      company     interests      equity
                               R000           R000         R000           R000         R000           R000         R000          R000        R000
Audited balance at  
1 July 2016               6 442 805      5 891 513      847 499        100 453      318 734      (116 483)   13 484 521      (13 201)  13 471 320
Total comprehensive       
income                            -        630 164    (129 096)              -            -              -      501 068      (29 886)     471 182
   Profit for the year            -        630 164            -              -            -              -      630 164      (29 886)     600 278
   Other comprehensive         
   loss                           -              -    (129 096)              -            -              -    (129 096)             -   (129 096)
Foreign currency          
translation reserve               -              -            -              -     (80 480)              -     (80 480)             -    (80 480)
Issue of shares              13 828              -            -              -            -              -       13 828             -      13 828
Derecognition of        
reserves and non-        
controlling interests due        
to sale of subsidiaries           -        423 806    (436 074)              -            -         12 268            -             -           -
Recognition of share-          
based payment reserve             -              -            -         27 763            -              -       27 763             -      27 763
Audited balance at         
30 June 2017              6 456 633      6 945 483      282 329        128 216      238 254      (104 215)   13 946 700      (43 087)  13 903 613
Total comprehensive          
income                            -      2 651 542      (4 648)              -            -              -    2 646 894        59 792   2 706 686
   Profit for the year            -      2 651 542            -              -            -              -    2 651 542        59 792   2 711 334
   Other comprehensive          
   loss                           -              -      (4 648)              -            -              -      (4 648)             -     (4 648)
Foreign currency        
translation reserve               -              -            -              -      506 447              -      506 447             -     506 447
Issue of shares               3 475              -            -              -            -              -        3 475             -       3 475
Settlement of share-        
based payment        
transaction                       -              -            -       (14 961)            -              -     (14 961)             -    (14 961)
Derecognition of         
reserves and non-         
controlling interests due         
to sale of subsidiaries           -       (59 698)        2 164              -            -              -     (57 534)             -    (57 534)
Transfer between           
reserves                          -          6 969            -       (15 077)            -              -      (8 108)             -     (8 108)
Recognition of share-           
based payment reserve             -              -            -         19 212            -              -       19 212             -      19 212
Audited balance at       
30 June 2018              6 460 108      9 544 296      279 845        117 390      744 701      (104 215)   17 042 125        16 705  17 058 830


Audited summarised segmental analysis
30 June 2018

                                                                                                                                                     
                                                Office and                                               Waterfall     Head office           Total   
Figures in R000                                  mixed-use         Retail    Industrial      Hotel    developments    South Africa    South Africa   
STATEMENT OF FINANCIAL POSITION
Investment property                              7 501 801     10 140 174     1 286 827    427 663               -           5 000      19 361 465   
Waterfall developments                                   -              -             -          -       1 872 620               -       1 872 620   
  Developments under construction                        -              -             -          -         346 441               -         346 441   
  Waterfall development rights                           -              -             -          -         879 324               -         879 324   
  Infrastructure and services                            -              -             -          -         646 855               -         646 855   
Straight-line lease debtor                         557 474        252 892        99 577     22 290               -               -         932 233   
Intangible assets and goodwill                           -              -             -          -               -         334 276         334 276   
Investments in associates and joint ventures           954         40 121        91 619          -               -           2 382         135 076   
Other financial assets                              22 920         13 288             -          -               -         353 751         389 959   
Loans to associates and joint ventures                   -              -       143 247          -               -           2 814         146 061   
Trade and other receivables                        109 565         69 396        23 286      2 674               -           7 587         212 508   
Cash and cash equivalents                           67 684         93 817         5 862        192               -       1 003 838       1 171 393   
Inventory                                           42 484              -             -          -               -               -          42 484   
Non-current assets held for sale                    46 668              -        68 481          -               -             775         115 924   
Other assets                                         3 000              -             -          -               -          52 155          55 155   
Total assets                                     8 352 550     10 609 688     1 718 899    452 819       1 872 620       1 762 578      24 769 154   
Long-term borrowings                                     -              -             -          -               -       9 680 546       9 680 546   
Other financial liabilities                         25 474         27 537        12 807          -               -         134 397         200 215   
Deferred tax liabilities                                 -              -             -          -               -          48 841          48 841   
Trade and other payables                           188 611        152 641        33 113      2 870               -          26 304         403 539   
Other liabilities                                        -              -             -          -          25 476          96 940         122 416   
Total liabilities                                  214 085        180 178        45 920      2 870          25 476       9 987 028      10 455 557   

                                                                                                     Rest of Africa
                                                                                     Investment in           retail      Head office
Figures in R000                                                                                MAS      investments           global         Total
STATEMENT OF FINANCIAL POSITION                                 
Investment property                                                                              -                -                -    19 361 465
Waterfall developments                                                                           -                -                -     1 872 620
  Developments under construction                                                                -                -                -       346 441
  Waterfall development rights                                                                   -                -                -       879 324
  Infrastructure and services                                                                    -                -                -       646 855
Straight-line lease debtor                                                                       -                -                -       932 233
Intangible assets and goodwill                                                                   -                -                -       334 276
Investments in associates and joint ventures                                             3 145 828           47 948                -     3 328 852
Other financial assets                                                                           -                -                -       389 959
Loans to associates and joint ventures                                                           -        1 044 529                -     1 190 590
Trade and other receivables                                                                      -                -               55       212 563
Cash and cash equivalents                                                                        -                -           68 238     1 239 631
Inventory                                                                                        -                -                -        42 484
Non-current assets held for sale                                                                 -                -            2 947       118 871
Other assets                                                                                     -                -                -        55 155
Total assets                                                                             3 145 828        1 092 477           71 240    29 078 699
Long-term borrowings                                                                             -                -        1 431 008    11 111 554
Other financial liabilities                                                                      -                -            1 714       201 929
Deferred tax liabilities                                                                   130 083                -                -       178 924
Trade and other payables                                                                         -                -               11       403 550
Other liabilities                                                                                -                -            1 496       123 912
Total liabilities                                                                          130 083                -        1 434 229    12 019 869
                                 


                                                                                                                                                    
                                                Office and                                               Waterfall     Head office           Total  
Figures in R000                                  mixed-use         Retail    Industrial      Hotel    developments    South Africa    South Africa  
STATEMENT OF COMPREHENSIVE INCOME 
Rental income                                      739 306      1 135 254       107 598     46 663               -           6 673       2 035 494  
Straight-line lease income adjustment               28 673         29 878        43 278      1 638               -               -         103 467  
Property expenses                                (226 974)      (470 003)      (32 000)   (12 673)               -          16 924       (724 726)  
Net rental income                                  541 005        695 129       118 876     35 628               -          23 597       1 414 235  
Sale of inventory                                   19 344              -        10 521          -               -               -          29 865  
Cost of sales                                     (16 522)              -       (8 396)          -               -               -        (24 918)  
Other income                                        70 699         58 745             -          -               -          23 017         152 461  
Operating expenses                                (32 060)       (32 790)       (5 972)      (731)               -        (93 525)       (165 078)  
Other expenses                                     (7 918)       (13 395)       (2 231)          -        (39 500)         (1 773)        (64 817)  
Operating profit (loss)                            574 548        707 689       112 798     34 897        (39 500)        (48 684)       1 341 748  
Amortisation of intangible assets                        -              -             -          -               -        (24 037)        (24 037)  
Fair value adjustments                             148 153        159 567      (10 842)     20 425          11 667          41 494         370 464  
Gain on available for sale financial assets              -              -             -          -               -          35 750          35 750  
Net income from associates                              36        (4 164)         5 362          -               -           (284)             950  
Investment income                                    3 340          8 996            13          9               -          57 688          70 046  
Finance costs                                            -              -             -          -               -       (916 593)       (916 593)  
Profit (loss) before tax                           726 077        872 088       107 331     55 331        (27 833)       (854 666)         878 328  
Taxation                                                 -              -             -          -               -       1 844 486       1 844 486  
Profit (loss) for the year                         726 077        872 088       107 331     55 331        (27 833)         989 820       2 722 814  
Non-controlling interests                                -              -             -          -               -          59 792          59 792  
Profit (loss) for the year attributable to owners  726 077        872 088       107 331     55 331        (27 833)         930 028       2 663 022  

                                                                                                     Rest of Africa
                                                                                     Investment in           retail      Head office
Figures in R000                                                                                MAS      investments           global         Total
STATEMENT OF COMPREHENSIVE INCOME                                  
Rental income                                                                                    -                -                -     2 035 494
Straight-line lease income adjustment                                                            -                -                -       103 467
Property expenses                                                                                -                -                -     (724 726)
Net rental income                                                                                -                -                -     1 414 235
Sale of inventory                                                                                -                -                -        29 865
Cost of sales                                                                                    -                -                -      (24 918)
Other income                                                                                     -            5 214                -       157 675
Operating expenses                                                                               -                -          (5 178)     (170 256)
Other expenses                                                                                   -         (83 490)          (4 355)     (152 662)
Operating profit (loss)                                                                          -         (78 276)          (9 533)     1 253 939
Amortisation of intangible assets                                                                -                -                -      (24 037)
Fair value adjustments                                                                           -                -            (199)       370 265
Gain on available for sale financial assets                                                      -                -                -        35 750
Net income from associates                                                                  68 774              908           11 074        81 706
Investment income                                                                                -          120 619            3 782       194 447
Finance costs                                                                                    -                -         (33 908)     (950 501)
Profit (loss) before tax                                                                    68 774           43 251         (28 784)       961 569
Taxation                                                                                  (93 297)                -          (1 424)     1 749 765
Profit (loss) for the year                                                                (24 523)           43 251         (30 208)     2 711 334
Non-controlling interests                                                                        -                -                -        59 792
Profit (loss) for the year attributable to owners                                         (24 523)           43 251         (30 208)     2 651 542

                                                                                                                                                  
                                                Office and                                               Waterfall     Head office           Total
Figures in R000                                  mixed-use         Retail    Industrial      Hotel    developments    South Africa    South Africa
STATEMENT OF FINANCIAL POSITION 
Investment property                              5 188 527      9 896 380       870 137    407 240               -           5 000      16 367 284
Waterfall developments                                   -              -             -          -       3 368 081               -       3 368 081
  Developments under construction                        -              -             -          -       1 598 966               -       1 598 966
  Waterfall development rights                           -              -             -          -       1 058 236               -       1 058 236
  Infrastructure and services                            -              -             -          -         710 879               -         710 879
Straight-line lease debtor                         501 534        223 013        56 298      20 651              -               -         801 496
Intangible assets and goodwill                           -              -             -          -               -         358 313         358 313
Investments in associates and joint ventures           918         54 617        91 591          -               -               -         147 126
Other financial assets                              35 183        142 118             -          -               -         319 087         496 388
Loans to associates and joint ventures                   -              -       140 792          -               -           5 605         146 397
Trade and other receivables                         77 926         82 286         5 583      1 446               -           7 295         174 536
Cash and cash equivalents                           19 468         96 476         6 708        148               -         237 284         360 084
Inventory                                                -              -        25 278          -               -               -          25 278
Non-current assets held for sale                   603 025              -             -          -               -             781         603 806
Other assets                                             -              -             -          -               -          64 706          64 706
Total assets                                     6 426 581     10 494 890     1 196 387    429 485       3 368 081         998 071      22 913 495
Long-term borrowings                                     -              -             -          -               -       9 158 969       9 158 969
Other financial liabilities                         17 268        183 899        70 174      1 510               -          27 741         300 592
Deferred tax liabilities                                 -              -             -          -               -       1 861 469       1 861 469
Trade and other payables                            83 532        149 376       137 150      2 125               -         129 186         501 369
Liabilities held for sale                                -              -             -          -               -         330 533         330 533
Other liabilities                                        -              -             -          -               -          94 807          94 807
Total liabilities                                  100 800        333 275       207 324      3 635               -      11 602 705      12 247 739

                                                                                                     Rest of Africa
                                                                                     Investment in           retail      Head office
Figures in R000                                                                                MAS      investments           global         Total
STATEMENT OF FINANCIAL POSITION 
Investment property                                                                              -                -                -    16 367 284
Waterfall developments                                                                           -                -                -     3 368 081
  Developments under construction                                                                -                -                -     1 598 966
  Waterfall development rights                                                                   -                -                -     1 058 236
  Infrastructure and services                                                                    -                -                -       710 879
Straight-line lease debtor                                                                       -                -                -       801 496
Intangible assets and goodwill                                                                   -                -                -       358 313
Investments in associates and joint ventures                                             2 729 308          223 534           53 424     3 153 392
Other financial assets                                                                           -                -            1 570       497 958
Loans to associates and joint ventures                                                           -        1 023 301           80 580     1 250 278
Trade and other receivables                                                                      -                -               87       174 623
Cash and cash equivalents                                                                        -                -           87 762       447 846
Inventory                                                                                        -                -                -        25 278
Non-current assets held for sale                                                                 -                -          197 677       801 483
Other assets                                                                                     -                -           11 453        76 159
Total assets                                                                              2 729 308       1 246 835          432 553    27 322 191
Long-term borrowings                                                                             -                -        1 096 943    10 255 912
Other financial liabilities                                                                      -                -            1 249       301 841
Deferred tax liabilities                                                                    36 786           33 885                -     1 932 140
Trade and other payables                                                                         -                -               11       501 380
Liabilities held for sale                                                                        -                -                -       330 533
Other liabilities                                                                                -                -            1 965        96 772
Total liabilities                                                                           36 786           33 885        1 100 168    13 418 578

                                                                                                                                                    
                                                Office and                                               Waterfall     Head office           Total  
Figures in R000                                  mixed-use         Retail    Industrial      Hotel    developments    South Africa    South Africa  
STATEMENT OF COMPREHENSIVE INCOME
Rental income                                      663 638      1 072 011        67 569     45 085               -          12 790       1 861 093  
Straight-line lease income adjustment               97 826         74 390        19 981      7 605               -               -         199 802  
Property expenses                                (168 455)      (462 513)      (19 075)   (13 023)               -        (79 211)       (742 277)  
Net rental income                                  593 009        683 888        68 475     39 667               -        (66 421)       1 318 618  
Sale of inventory                                        -              -             -          -               -               -               -  
Cost of sales                                            -              -             -          -               -               -               -  
Other income                                        17 787          6 120             -          -               -           1 051          24 958  
Operating expenses                                (26 515)       (32 594)       (3 117)    (1 470)               -        (94 100)       (157 796)  
Other expenses                                     (9 640)           (10)       (7 824)          -               -        (25 805)        (43 279)  
Operating profit (loss)                            574 641        657 404        57 534     38 197               -       (185 275)       1 142 501  
Amortisation of intangible assets                        -              -             -          -               -        (22 060)        (22 060)  
Fair value adjustments                              44 060        403 286        68 092     21 498         127 589       (137 628)         526 897  
Net income from associates                              37          1 283        22 385          -               -           (496)          23 209  
Investment income                                   36 183          5 189        14 852         35               -         (2 662)          53 597  
Finance costs                                            -              -             -          -               -       (891 536)       (891 536)  
Profit (loss) before tax                           654 921      1 067 162       162 863     59 730         127 589     (1 239 657)         832 608  
Taxation                                                 -              -             -          -               -       (112 194)       (112 194)  
Profit (loss) for the year                         654 921      1 067 162       162 863     59 730         127 589     (1 351 851)         720 414  
Non-controlling interests                                -              -             -          -               -        (29 886)        (29 886)  
Profit (loss) for the year attributable to owners  654 921      1 067 162       162 863     59 730         127 589     (1 381 737)         690 528  

                                                                                                    Rest of Africa
                                                                                     Investment in          retail     Head office
Figures in R000                                                                                MAS     investments          global           Total
STATEMENT OF COMPREHENSIVE INCOME  
Rental income                                                                                    -               -               -       1 861 093
Straight-line lease income adjustment                                                            -               -               -         199 802
Property expenses                                                                                -               -               -       (742 277)
Net rental income                                                                                -               -               -       1 318 618
Sale of inventory                                                                                -               -               -               -
Cost of sales                                                                                    -               -               -               -
Other income                                                                                     -               -          35 505          60 463
Operating expenses                                                                               -               -         (1 834)       (159 630)
Other expenses                                                                                   -       (266 180)       (116 641)       (426 100)
Operating profit (loss)                                                                          -       (266 180)        (82 970)         793 351
Amortisation of intangible assets                                                                -               -               -        (22 060)
Fair value adjustments                                                                           -               -             684         527 581
Net income from associates                                                                 190 008           3 159          33 504         249 880
Investment income                                                                                -         109 089          26 850         189 536
Finance costs                                                                                    -               -        (95 875)       (987 411)
Profit (loss) before tax                                                                   190 008       (153 932)       (117 807)         750 877
Taxation                                                                                  (36 096)               -         (2 307)       (150 597)
Profit (loss) for the year                                                                 153 912       (153 932)       (120 114)         600 280
Non-controlling interests                                                                        -               -               -        (29 886)
Profit (loss) for the year attributable to owner                                           153 912       (153 932)       (120 114)         570 394




Segmental analysis
Reconciliation of profit for the year to distributable earnings

                                                                                                                                           Audited
                                                                                                                                            30June
                                                                                                                                              2018   
                                                                                                                                              R000   
Profit for the year attributable to Attacq's shareholders                                                                                2 651 542   
Profit on disposal of subsidiary                                                                                                           (5 633)   
Loss on disposal of other investments                                                                                                        2 612   
Profit on disposal of investment property                                                                                                 (14 947)   
Impairment of associates, other investments and loans                                                                                       51 197   
Realisation of available-for-sale financial assets                                                                                        (35 750)   
Fair value adjustments                                                                                                                   (370 265)   
Net income from associates and joint ventures                                                                                             (81 706)   
Non-controlling interests' share of fair value adjustments                                                                                (25 395)   
Straight-line lease income adjustments                                                                                                    (95 967)   
Adjustment for net non-cash interest from associates                                                                                      (87 613)   
Net cash interest received from associates                                                                                                  42 425   
Depreciation and amortisation                                                                                                               40 335   
Foreign currency translation effect                                                                                                         50 698   
Finance lease interest                                                                                                                       3 784   
Dividends received from associates                                                                                                         166 723   
Write-off of other trade and receivable                                                                                                     52 492   
Write-off of loan account net of non-controlling interest                                                                                 (56 178)   
Non cash interest accrued                                                                                                                    7 536   
Movement in provision                                                                                                                        3 943   
Deferred taxation                                                                                                                      (1 771 676)   
Actual finance lease payments                                                                                                                (773)   
Distributable earnings for the year                                                                                                        527 384   
Number of shares in issue*                                                                                                             703 155 224   
Weighted average number of shares in issue*                                                                                            702 989 909   
Diluted weighted average number of shares in issue*                                                                                    708 584 902   
Distributable earnings per share                                                                                                                     
Basic (cents)                                                                                                                                 75.0   
Diluted (cents)                                                                                                                               75.0   
Distribution for the year                                                                                                                            
Interim                                                                                                                                          -   
Final                                                                                                                                      520 335   
Distribution per share                                                                                                                        74.0   
Interim (cents)                                                                                                                                  -   
Final (cents)                                                                                                                                 74.0   
* Adjusted for 46 427 553 treasury shares (2017: 46 427 553)                           


Independent non-executive directors
P Tredoux (chairperson)
HR El Haimer (lead independent)
MM du Toit
IN Mkhari
KR Moloko
BT Nagle
S Shaw-Taylor
JHP van der Merwe

Executive directors
M Hamman (CEO)
R Nana (CFO)
JR van Niekerk (COO)

Company secretary
T Kodde

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

Postal address
PostNet Suite 016
Private Bag X81
Halfway House
1685

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

Sponsor
Java Capital

Company contact details
Head of investor relations
Brenda Botha
Landline number: 087 845 1112
brenda@attacq.co.za

11 September 2018


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