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ATTACQ LIMITED - Condensed unaudited consolidated interim financial results for the six months ended 31 December 2018

Release Date: 05/03/2019 08:22
Code(s): ATT     PDF:  
 
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Condensed unaudited consolidated interim financial results for the six months ended 31 December 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)

CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS
for the six months ended 31 December 2018

Commentary

Highlights

-   Dividend per share (DPS) of 40.5 cents declared for the six months ended 31 December 2018
-   Growth in distributable earnings per share (DEPS) of 9.5%
-   Interest cover ratio improved to 1.77 times from 1.68 times
-   Trading density growth in retail portfolio of 6.9%
-   During the period, two buildings were completed in Waterfall with a further 12 buildings under construction

Introduction

Attacq is a South African-based REIT, delivering sustainable income and capital growth through a focused approach in real estate
investments and developments.

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

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

The group deconsolidated Nieuwtown Property Development Proprietary Limited (Nieuwtown) and Majestic Offices Proprietary
Limited (Majestic) and as a result restated prior year figures. For more information, refer to the paragraph, restatement of Attacq's
prior year financial statements.

General overview

Attacq's board of directors (the board) is pleased to announce that an interim dividend of 40.5 cents per share (cps) for the six
months ended 31 December 2018 has been declared. Having converted to a REIT in May 2018, Attacq declared its inaugural dividend
in October 2018 for the full year ended 30 June 2018 and therefore there is no prior period comparative for this interim dividend.

In a challenging environment, Attacq's South African portfolio performed well, supported by good trading growth from the Mall of
Africa as well as newly completed buildings in Waterfall. This, combined with strong growth in dividends received from MAS, resulted
in the group's distributable earnings increasing by 9.6% to R316.4 million (31 December 2017: R288.7 million). The investments into
the Rest of Africa remain a challenge and impairments to these investments as well as Attacq paying out a full year dividend in
October 2018, resulted in the net asset value per share (NAVPS) declining by 2.4% from R24.24 at 30 June 2018 to R23.66.

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

                                                                                      Unaudited           Restated unaudited
                                                                                  31 December 2018         31 December 2017 
Distributable earnings                                                              R'000       cps         R'000        cps   
South African portfolio                                                           205 587      29.3       174 608       24.9   
Developments at Waterfall                                                        (16 213)     (2.3)       (2 792)      (0.4)   
Investment in MAS                                                                  95 999      13.6        74 167       10.5   
Rest of Africa retail investments                                                  31 004       4.4        42 747        6.1   
Total                                                                             316 377      45.0       288 730       41.1   

South African Portfolio

Overview

Attacq's high-quality operational portfolio consists of retail, office and mixed-use, light industrial and hotel properties. During the
six months ended 31 December 2018, the distributable earnings from the South African portfolio increased by 17.7% to 29.3 cps
(31 December 2017: 24.9 cps). The value of the existing South African portfolio is R21.0 billion (30 June 2018: R21.0 billion), comprising
75.1% (30 June 2018: 75.2%) of total gross assets.

The portfolio's weighted average lease expiry profile is 6.8 years as at 31 December 2018 (30 June: 7.0 years). The average growth
in trading densities in the retail portfolio for the year ended 31 December 2018 was 6.9% (31 December 2017: (0.8%)). The Mall
of Africa's trading density growth is 12.7% (31 December 2017: 11.0%) for the 2018 calendar year ended and its rent to sales ratio
improved to 9.2% (31 December 2017: 9.8%).

During the six months ended 31 December 2018, two buildings were completed in Waterfall, increasing the total South African
portfolio primary gross lettable area (PGLA) to 731 945m2 (30 June 2018: 722 730m2). Attacq's attributable share of the total newly
completed 19 268m2 PGLA is 9 634m2:

                                                          Lease             Effective    Total               Effective share   
                                                          commencement           PGLA     PGLA   Occupancy         valuation   
Completed properties                                      date                     m2       m2           %             R'000   
Waterfall City                                                                                                                 
Waterfall Corporate Campus - Accenture(+)                 1 December 2018       1 985    3 970      100.0%            66 159   
Waterfall Logistics Hub                                                                                                        
Cummins South Africa's Regional Office(+)                 1 March 2019          7 649   15 298      100.0%           114 267   

(+) Attacq has a 50.0% co-ownership

Rental income

Rental income increased by 12.4% to R1.0 billion (31 December 2017: R893.5 million) mainly due to the additional rental income from
the buildings completed during the FY17 and FY18 years. Like-for-like rental growth was 0.4%, negatively impacted by the beneficial
occupation period granted to Transnet and vacancies at 2 Eglin.

Leases expiring over the last 12 months amounted to 110 171m2 (15.1% of total rentable area of the space). During this period, 92 861m2
was renewed at a reversion rate of negative 4.1% and a weighted average escalation rate of 7.1%.

                                                        Expired PGLA                                                           
Lease renewals                                                    m2   Success rate %   Reversion rate %   Escalation rate %   
Office                                                        61 421             91.5              (8.1)                 7.8   
Retail                                                        48 751             75.5              (0.1)                 6.5   
Total                                                        110 171             84.4              (4.1)                 7.1   

Property expenses

Property expenses increased by 8.0% on a like-for-like basis. The increase of 17.0% on total property expenses to R365.3 million
(31 December 2017: R312.4 million) was due to newly completed buildings and an increase in municipal rates, impacted by increases
in municipal valuations in Johannesburg. Municipal charges increased by 19.7% to R233.0 million (31 December 2017: R194.6 million),
not all of which were recoverable from all tenants. This, combined with vacancies, resulted in a reduction in the municipal charge
recovery ratio to 89.5% (31 December 2017: 93.1%).

Property cost-to-income ratio

The property cost-to-income ratio calculated below is based on best practice recommendations issued by the SA REIT Association.
The Waterfall portfolio's ratios include the land lease rental obligation.

                                                                                                                    Restated   
                                                                                                Unaudited          unaudited   
                                                                                         31 December 2018   31 December 2017   
Property cost-to-income ratio                                                                           %                  %   
Waterfall portfolio                                                                                                            
Net cost-to-income ratio                                                                             21.0               21.2   
Gross cost-to-income ratio                                                                           35.9               36.1   
Non-Waterfall portfolio                                                                                                        
Net cost-to-income ratio                                                                             18.0               15.8   
Gross cost-to-income ratio                                                                           37.0               33.9   

Vacancies

Overall portfolio vacancies, measured in terms of PGLA, decreased by 19 168m2 to 36 494m2 when compared with 30 June 2018
mainly due to the Dis-Chem warehouse lease commencement and the leases concluded in Gateway West with Sage and Spaces.

Subsequent to 31 December 2018, 3 077m2 of this vacant space was let, reducing the overall vacancy rate to 4.6%. Vacancies not
yet filled mainly refer to 2 Eglin, Brooklyn Bridge Office Park and Gateway West.

                                                        Unaudited 31 December 2018          Restated unaudited 30 June 2018
Sector vacancies                                                        %      PGLA m2                      %        PGLA m2   
Retail                                                                2.6        7 539                    1.7          4 946   
Office and mixed-use                                                 11.3       28 955                   16.7         42 198   
Light industrial                                                        -            -                    5.3          8 518   
Hotel                                                                   -            -                      -              -   
Period end portfolio vacancy                                          5.0       36 494                    7.7         55 662   
Less: filled post period-end                                          0.4        3 077                    3.0         21 791   
Less: 2 Eglin                                                         2.8       20 732                    2.9         20 732   
Adjusted portfolio vacancy                                            1.7       12 685                    1.8         13 139   
Waterfall                                                             0.5        3 574                    0.6          4 573   
Other                                                                 1.2        9 111                    1.2          8 566   

Edcon restructure

From a South African operational point of view (including 50.0% of Newtown Junction), Attacq's effective Edcon Limited (Edcon)
exposure will settle at 22 945m2 of PGLA by 1 October 2019 (with an effective gross monthly rental of R3.2 million), which is
estimated at 3.0% of the effective PGLA. This follows a reduction from 29 262m2 based on PGLA (with an effective gross monthly
rental of R4.1 million) at 30 June 2018 to 25 499m2 by 31 December 2018 (with an effective gross monthly rental of R3.6 million).

Attacq is participating in Edcon's announced recapitalisation programme. The impact of the recapitalisation programme on Attacq's
property valuations has been incorporated by reducing the gross rental income for the 24 months commencing 1 April 2019. On
implementation, the impact on the distributable earnings for the 2019 financial year will be a R4.2 million reduction.

Valuations

The capitalisation and discount rates for the 31 December 2018 valuations remained largely unchanged when compared with
the 30 June 2018 valuations. Fair value adjustments were negatively impacted mainly by an impairment on 2 Eglin, due to high
vacancies and lower market rental projections.

Property valuations on completed properties for the interim reporting period are directors' valuations which are in the main
supported by external desktop valuations performed by Sterling Valuation Specialists CC and Wolffs Valuations Services Proprietary
Limited in association with Mills Fitchet Cape Proprietary Limited.

Developments at Waterfall

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 953 036m2 (30 June 2018: 957 008m2) of remaining developable bulk.

Distributable earnings are impacted by the holding costs relating to developments under construction, infrastructure and
development rights. Holding costs refer to spend on rates and taxes, marketing, security, and Property Owners Association levies.
For the period ended 31 December 2018, this has had a negative 2.3 cents impact on the distributable earnings.

The total asset value of Developments at Waterfall, including the value of the Attacq Sanlam joint venture, increased to R2.6 billion
(30 June 2018: R2.3 billion). The increase is a result of capital expenditure and fair value adjustments on developments under
construction due to the progress of the developments.

                                                                                                                    Restated   
                                                                                                    Unaudited      unaudited   
                                                                                             31 December 2018   30 June 2018   
Developments at Waterfall                                                                               R'000          R'000   
Developments under construction                                                                       758 849        527 592   
Development rights                                                                                    879 179        901 428   
Infrastructure and services                                                                           766 462        685 875   
Attacq Sanlam joint venture                                                                           145 648        143 803   
Total                                                                                               2 550 138      2 258 698   

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.

Developments under construction

The following developments were under construction as at 31 December 2018. Attacq's attributable share of the total of 83 896m2
PGLA is 57 431m2.

                                                               Anticipated                                                     
                                                                 practical           Lease   Effective    Total      Pre-let   
                                                        Land    completion    commencement        PGLA     PGLA   % based on   
Developments                                          parcel          date            date         m2*      m2*   total PGLA   
Waterfall City                                                                                                                 
Waterfall Corporate                                      10B       Q3 FY19               -       3 215    6 430            -   
Campus - building 2(+)                                                                                                           
Waterfall Point                                           15       Q3 FY19       Sectional       9 356    9 356      40.0(#)   
                                                                               title sales                                     
The Ingress - PSG Wealth                                  10       Q1 FY20   1 August 2019       4 371    4 371        100.0   
The Ingress - building 2                                  10       Q2 FY20               -       4 360    4 360            -   
Deloitte head office(+)                                   10       Q3 FY20    1 April 2020      21 250   42 500        100.0   
Waterfall Logistics Hub                                                                                                        
Pirtek                                                     8       Q3 FY19      1 May 2019       2 926    2 926        100.0   
Superga/Kappa warehouse                                    8       Q4 FY19     1 June 2019       4 657    4 657        100.0   
Midi warehouse                                             8       Q4 FY19               -       5 296    5 296            -   
Zimmer Biomet(+)                                           8       Q4 FY19     1 June 2019       2 000    4 000        100.0   
Total                                                                                           57 431   83 896       >73.0%   

*   Estimated PGLA of development. Subject to change upon final re-measurement post completion
(+) Attacq has a 50.0% ownership
(#) Based on pre-sales

Waterfall Point - land parcel 15

Waterfall Point, located at the corner of Waterfall and Woodmead Drive, is an A-grade office park with four buildings of 2 339m2
of PGLA each. The office park is structured as a sectional title scheme, to cater for companies with the need to invest in their own
premises. It is the intention for Attacq to retain at least one full building as investment property, for rental. Three buildings have
been classified as inventory, with 40.0% pre-sold. Recognition of the revenue, and cost of sales, on the pre-sold inventory is on a
percentage completion basis.

Valuations

The valuations of developments under construction as at 31 December 2018 are directors' valuations, valuing the development
at completion, less the costs to complete. These valuations are supported by external desktop valuations performed by Sterling
Valuation Specialists CC and Wolffs Valuations Services Proprietary Limited in association with Mills Fitchet Cape Proprietary
Limited.

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 31 December 2018, AWIC had 953 036m2 of remaining developable bulk. The heart of the development portfolio is 776 484m2
of remaining developable bulk in Waterfall City, zoned for mixed-use developments. The Logistics Hub, which is well positioned for
light industrial tenants, comprises 176 552m2 of remaining developable bulk. In addition, AWIC has access to a further 686 054m2 of
developable bulk in the joint venture with Sanlam Properties, a division of Sanlam Life Insurance Limited (Sanlam).

The development rights valuation is a directors' valuation, supported by an external desktop valuation performed by Sterling
Valuation Specialists CC. The external valuation is carried out using a residual land valuation model on a freehold, fully serviced
basis. The valuation is adjusted downwards 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.

Infrastructure and services

The net increase in the value of infrastructure and services, held at cost, compared to prior year is as a result of infrastructure and
pre-development spend of R75.7 million, offset against the reallocation to developments under construction of R4.8 million.

Development pipeline

                                                         Anticipated        Anticipated                                        
                                                           practical              lease   Effective   Total          Pre-let   
                                                  Land    completion       commencement       PGLA*   PGLA*       % based on   
Developments                                    parcel          date               date          m2      m2       total PGLA   
Waterfall City                                                                                                                 
Waterfall Corporate Campus -                                                                                                   
ContinuitySA(+)                                    10B       Q2 FY20     1 January 2020       2 765   5 530            100.0   
Courtyard Hotel(+)                                  10       Q2 FY21     1 January 2021       3 119   6 237            100.0   
The Ellipse                                         10             -          Sectional         n/a     n/a   Phase I >60.0%   
                                                                       title unit sales                             pre-sold   

*   Estimated PGLA of development. Subject to change upon final re-measurement post completion
(+) Attacq has a 50.0% ownership

Waterfall Corporate Campus Office Park (Corporate Campus) - land parcel 10B

Corporate Campus is a 50/50 joint venture with Zenprop Property Holdings Proprietary Limited (Zenprop), with an approximate
total development cost of R880.0 million. The development, on completion, will comprise six multi-tenanted office buildings with an
estimated total PGLA of 30 000m2. Building 1 (5 868m2) and the Accenture building (3 970m2) have been completed and are fully
tenanted. Building 2 will be completed during the third quarter of the 2019 financial year. Building 5 (phase III) will be fully tenanted
by ContinuitySA with a total construction cost estimated at R126.6 million. The estimated practical completion date of Building 5 is
the second quarter of the 2020 financial year, with the lease commencement date being 1 January 2020.

Courtyard Hotel - land parcel 10

Attacq and Barrow Properties Proprietary Limited (Barrow Properties) have established a 50/50 joint venture to develop this
mixed-use precinct adjacent to the Mall of Africa which comprises four office buildings and a "new concept" 4 star Courtyard
Hotel by the City Lodge Hotel Group. The total PGLA is estimated at 32 000m2 at an estimated total development cost of R800.0
million. The basement beneath building 1 has been completed with the construction of the remainder of the super-basement to
commence in March 2019. The construction of the top structure of the 168 key Courtyard Hotel is estimated to commence 1 June
2019 at an approximate development cost of R229.1 million (cost per key: R1.3 million). Construction of the remaining precinct will
be in a phased approach subject to leasing. Transfer of Barrow Properties share of development rights is pending and R56.0 million
(30 June 2018: R46.7 million) is classified as non-current assets held for sale.

The 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 620 residential units, west of the Mall of Africa.
The development is a 50/50 joint venture with Portstone Developments Proprietary Limited. Phase I will consist of two towers
of 272 units. The estimated development cost of R520.0 million for phase I includes infrastructure that will benefit phase II. The
commencement of construction is subject to achieving a certain level of secured pre-sales.

Investment in MAS

Overview

Distributable earnings of R96.0 million (31 December 2017: R74.2 million), was generated by the investment in MAS, comprising the
cash dividend received of R97.3 million, a realised profit of R2.3 million on forward exchange contracts less the tax impact of realised
and unrealised hedges of R3.6 million.

Attacq's shareholding in MAS remained unchanged at 22.8%. The market value of Attacq's investment, based on 31 December 2018
MAS share price of R21.20 (30 June 2018: R21.00), equates to R3.1 billion (30 June 2018: R3.1 billion). Attacq's equity accounted
investment at 31 December 2018 is R3.2 billion (30 June 2018: R3.1 billion).

MAS' income-producing portfolio achieved a 55.7% increase in net rental income to EUR23.8 million and MAS recorded a 40.0%
increase in distributable earnings per share from 2.70 euro cents per share to 3.78 euro cents per share, driven by acquisitions of
investment property, its Prime Kapital joint venture and its listed REIT portfolio. Investment property (including assets held for sale)
increased by 21.6% to EUR769.8 million from EUR632.8 million.

MAS' management focus on the recycling of capital out of mature assets into higher-yielding properties resulted in the disposal
of its Whitbread hotel assets at New Waverley, Edinburgh, for EUR43.3 million at yields of 4.1%. During the period, three income-
producing properties were acquired adding a total of 110 340m2 gross lettable area (GLA) to MAS' property portfolio.

                                                                                                                 Acquisition   
                                                                                                           GLA     valuation   
Property                                                                                     Location       m2   EUR million   
Flensburg Galerie Shopping Centre                                                  Flensburg, Germany   25 540          62.5   
Militari Shopping Centre                                                           Bucharest, Romania   56 200          95.0   
Atrium Mall Shopping Centre                                                             Arad, Romania   28 600          40.5   

The Prime Kapital development joint venture completed the first two of its larger retail developments in November 2018 and
December 2018, respectively, with the opening of the 18 808m2 Roman Value Centre and the 21 318m2 Baia Mare Value Centre, both
located in Romania. A total of nine developments totalling 67 950m2 of GLA have been completed by the joint venture at a net
initial yield of 10.6%.

The development joint venture pipeline comprises ten assets with an estimated total development cost of EUR737.8 million and
totalling 498 300m2 of GLA. Development of seven of these assets will commence shortly and two are expected to be completed
by December 2019.

In addition, plans are underway to extend and refurbish the retail assets of the investment joint venture between MAS and Prime
Kapital, namely Nova Park (Poland), Burgas Mall and Stara Zagora Mall (both Bulgaria). Approximately 57 000m2 of GLA can be
added at an estimated cost of EUR134.5 million in order to expand the fashion and leisure offerings of the centres and entrench
their regionally dominant nature.

Subsequent to period end, MAS entered into a transaction via the investment joint venture with Prime Kapital, to acquire the nine
completed developments in Romania from the Prime Kapital development JV for an aggregate value of EUR108 million. It was also
agreed that the existing development joint venture would be extended by a further two years, taking the exclusivity period with
Prime Kapital to 2023.

Hedging of MAS dividends

Attacq hedged a portion of the final MAS dividend received on 17 October 2018 and realised a foreign exchange profit of R2.3 million.

Additional hedges currently in place in respect of expected future MAS dividends are as follows:
                       
                                                                          Financial                                            
                       Amount hedged                                         period                                  Forward   
                         EUR million                                       received                                     rate   
                                 4.5                                           2019                                 R17.9895   
                                 5.1                                           2020                                 R18.0962   
                                 2.7                                           2020                                 R17.2850   
         
Rest of Africa Retail Investments

Overview

The Rest of Africa Retail Investments generated distributable earnings of R31.0 million (31 December R42.7 million) during the
period, comprising R33.6 million of interest received from AttAfrica, R7.2 million of interest received from Gruppo Investment
Nigeria Limited (Gruppo) less the cost of external debt service of R9.4 million and associated tax paid of R0.4 million.

As at 31 December 2018, Attacq's Rest of Africa Investments were held via its:

- 25.0% shareholding in Gruppo, the owner of Ikeja City Mall, located in Lagos, Nigeria; and
- 31.8% shareholding in AttAfrica Limited (AttAfrica), which is invested in four retail properties in Ghana and one retail property in
  Zambia.

As at 31 December 2018, the value of Attacq's Rest of Africa retail investments was R806.9 million comprising 2.9% (30 June 2018: 4.2%)
of its total gross assets.

The group's equity accounted investment into and loan to Gruppo totalled R253.0 million (30 June 2018: R305.2 million). The decrease in
the investment value is a result of an impairment of R66.1 million offset by a 4.9% weakening of the rand against the US dollar.

Attacq's investment in AttAfrica, through its shareholder loan, amounted to R553.9 million (30 June 2018: R787.3 million), being its gross
loan of R1.0 billion (30 June 2018: R953.9 million), net of an aggregate impairment of R484.0 million (30 June 2018: R166.6 million). An
impairment of R304.1 million was recognised against the loan in the current period (31 December 2017: R3.5 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.
As reported in prior periods, AttAfrica shareholders are investigating options to create liquidity in the portfolio in advance of the
June 2020 shareholder liquidity event; failing which the existing capital structure will be restructured.

Malls and performance

At 31 December 2018, the retail properties in which Attacq has an interest, together with the vacancy rates were as follows:

                                                                                            Attacq's                           
                                                                                           effective   Vacancy %   Vacancy %   
Property                                           Location         Owner       PGLA m2   interest %    Dec 2018   June 2018   
Manda Hill                                         Lusaka, Zambia   AttAfrica    42 002         15.9         7.2         4.1   
Accra Mall                                         Accra, Ghana     AttAfrica    21 311         15.0         6.3         6.8   
West Hills Mall                                    Accra, Ghana     AttAfrica    28 272         14.3        15.6        10.4   
Achimota Retail Centre                             Accra, Ghana     AttAfrica    15 534         23.9         3.4         1.9   
Kumasi City Mall                                   Kumasi, Ghana    AttAfrica    18 604         23.9        12.8        13.0   
Ikeja City Mall                                    Lagos, Nigeria   Gruppo       22 223         25.0         3.1         3.1   

The Ghana, Zambia and Nigeria economies remain under pressure with continued local currency depreciation and policy uncertainty.
Tenant depth challenges will be exacerbated by the loss of a number of South African clothing retailers who are unlikely to renew
their leases. AttAfrica shareholders are reviewing this investment with the view to a reduction in exposure.

Assets held for sale

                                                                                                                    Restated
                                                                                                  Unaudited        unaudited
                                                                                           31 December 2018     30 June 2018
                                                                                                      R'000            R'000   
Waterfall City/Barrow Properties                                                                     56 026           46 668   
Cummins South Africa's regional office/Zenprop                                                      108 204           63 372   
Stenham European Shopping Centre Fund Limited                                                             ?            2 947   
Rainprop Proprietary Limited                                                                            763              775   
Zimmer Biomet/Sanlam                                                                                 11 751            5 109   
Total                                                                                               176 744          118 871   

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. The 31 December 2018
value of R108.2 million was settled during February 2019 when the property transferred to Zenprop. Similarly, amounts outstanding
from Barrow Properties and Sanlam will be settled upon transfer.

Borrowings

Total interest-bearing borrowings increased by 4.4% to R10.5 billion (30 June 2018: R10.1 billion). Gearing, calculated as total interest-
bearing debt less unrestricted cash on hand as a percentage of total assets less cash on hand, increased from 33.5% (30 June 2018)
to 36.3% (31 December 2018). The increase of the gearing ratio is largely as a result of paying out a full year dividend in October
2018 and impairments to the investments in Africa. Attacq has provided a guarantee of R286.0 million in respect of external
interest-bearing debt on behalf of Nieuwtown a 50.0% equity accounted associate. Should Nieuwtown Precinct be proportionally
consolidated, the group's gearing ratio would increase to 37.6% There are committed but undrawn facilities as at 31 December 2018
of R720.5 million which are all rand-denominated (30 June 2018: R676.4 million).

                                                                                                                    Restated   
                                                                                                    Unaudited      unaudited   
                                                                                             31 December 2018   30 June 2018   
Total drawn facilities (R'000)                                                                     10 510 399     10 065 586   
Total weighted average loan term (years)                                                                  3.8            4.2   
ZAR-denominated interest-bearing borrowings                                                                                    
Committed facilities available (R'000)                                                              9 755 753      9 312 162   
Drawn facilities (R'000)                                                                            9 038 478      8 634 578   
Weighted average loan term (years)                                                                        4.1            4.7   
EUR-denominated interest-bearing borrowings                                                                                    
Committed facilities available (R'000)                                                              1 475 166      1 431 123   
Drawn facilities (R'000)                                                                            1 471 921      1 431 008   
Weighted average loan term (years)                                                                        1.1            1.4   
Gearing (%)                                                                                              36.3           33.5   

In order to mitigate interest rate risk, as at 31 December 2018, approximately 89.0% (30 June 2018: 94.2%) of total committed
facilities of R11.2 billion (30 June 2018: R10.7 billion) were hedged by way of fixed interest rate loans or interest rate swaps which is
higher than the group's minimum hedging policy of 70.0%.

                                                                                                    Unaudited      unaudited   
                                                                                             31 December 2018   30 June 2018   
Total hedged as a % of total committed facilities (%)                                                    89.0           94.2   
Total weighted average hedges term (years)                                                                3.3            3.7   
Rand-denominated hedges                                                                                                        
Total hedged as a % of total committed facilities (%)                                                    93.9           99.9   
Weighted average hedges term (years)                                                                      3.6            4.0   
EUR-denominated hedges                                                                                                         
Total hedged as a % of total committed facilities (%)                                                    56.8           56.8   
Weighted average hedges term (years)                                                                      0.3            0.8   

The weighted average cost of funding remained unchanged over the last six months at 8.9% (30 June 2018: 8.9%). For rand-
denominated funding, the weighted average floating interest rate increased from 8.8% (30 June 2018) to 9.0% (31 December 2018),
which is in line with the increase in the three-month JIBAR rate over the same period.

                                                                                                                    Restated   
                                                                                                    Unaudited      unaudited   
                                                                                             31 December 2018   30 June 2018   
                                                                                                            %              %   
Total weighted average cost of debt                                                                       8.9            8.9   
Rand-denominated weighted average cost of debt                                                                                 
Weighted average floating interest rate                                                                   9.0            8.8   
Premium for hedging                                                                                       0.9            1.2   
Weighted average cost of debt                                                                             9.9           10.0   
EUR-denominated weighted average cost of debt                                                                                  
Weighted average floating interest rate                                                                   2.3            2.3   
Premium for hedging                                                                                       0.1            0.1   
Weighted average cost of debt                                                                             2.4            2.4   

The interest cover ratio has improved to 1.77 times (31 December 2017: 1.68 times) due to escalations in contractual rental income
and an increase in the cash dividend received from MAS.

R503.1 million (30 June 2018: R538.1 million) of the group's interest-bearing debt is due for repayment over the next 12 months.
Of the R503.1 million, R398.3 million relates to one of the tranches in the Attacq Retail Fund and Lynnwood Bridge Office Park
syndicated loan and the group has started discussions with funders to refinance this tranche and is confident that the tranche will
be refinanced.

During the six months ended 31 December 2018, a facility of R330.3 million was refinanced.

An increase in other financial liabilities of R15.9 million (30 June 2018: decrease R40.7 million) was recorded on the mark-to-market
valuation of interest rate swaps.

Restatement of Attacq's prior year financial statements

Deconsolidation of Nieuwtown and Majestic

The group has a 50.0% shareholding in Nieuwtown and Majestic.

The group was considered to have control over both Nieuwtown and Majestic because of its 50.0% ownership as well as performing
the asset management function on behalf of both companies. As a result, Nieuwtown and Majestic were consolidated in the group
financial statements for all previous reporting dates since inception.

When Attacq relinquished the asset management function, Nieuwtown and Majestic were deconsolidated by the group with effect
from 1 July 2018.

The decision to consolidate Nieuwtown and Majestic in prior years was reviewed together with the accounting treatment appropriate
with the change in asset managers referred to above. Following the review, it was determined that the performance of the asset
management function in conjunction with a 50.0% shareholding does not by itself result in control. It was therefore concluded that
Attacq had joint control with its co-shareholder prior to 1 July 2018.

The impact of this error is that the group has restated the prior year financial statements by deconsolidating Nieuwtown and
Majestic and accounting for these investments as associates in terms of IFRS 11: Joint Arrangements.

Error in treatment of non-controlling interest of Nieuwtown in calculating distributable earnings

While preparing the restated prior year financial statements as referred to above, it was observed that the non-cash intercompany
transactions attributable to the non-controlling interest in respect of Nieuwtown were not adjusted for in the calculation
of distributable earnings. This error was corrected by effecting the prior year restatement of deconsolidating Nieuwtown and
accounting for this investment as an associate in terms of IFRS 11: Joint Arrangements.

The impact of these restatements on the key metrics is as follows:

                                                       31 December 2017                                30 June 2018
Impact on                                   As reported       Restatement   Restated   As reported    Restatement   Restated   
Net asset value per share (cps)                 2 056.0               2.0    2 058.0       2 424.0              -    2 424.0   
Distributable earnings per share (cps)             38.9               2.2       41.1          75.0            5.7       80.7   

A restatement is required in terms of IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors because of the
material adjustments to individual line items of the financial statements as detailed below:

Condensed consolidated statement of financial position

                                                                   As reported                   Restated                                            
                                                                     unaudited                  unaudited   As reported                   Restated   
                                                                            31                         31       audited                  unaudited   
                                                                      December                   December       30 June                    30 June   
                                                                          2017   Restatement         2017          2018   Restatement         2018   
                                                                         R'000         R'000        R'000         R'000         R'000        R'000   
ASSETS                                                                                                                                               
Non-current assets                                                                                                                                   
Property and equipment                                                  47 130       (1 501)       45 629        42 667       (1 446)       41 221   
Investment properties                                               20 323 153   (1 480 370)   18 842 783    21 234 085   (1 442 940)   19 791 145   
Per valuation                                                       21 165 270   (1 558 148)   19 607 122    22 166 318   (1 533 150)   20 633 168   
Straight-line lease debtor                                           (842 117)        77 778    (764 339)     (932 233)    )   90 210    (842 023)   
Straight-line lease debtor                                             842 117      (77 778)      764 339       932 233      (90 210)      842 023   
Investment in associates and joint ventures                          3 179 281        12 404    3 191 685     3 328 852        16 710    3 345 562   
Total non-current assets                                            25 117 175   (1 547 245)   23 569 930    26 255 538   (1 517 886)   24 737 652   
Current assets                                                                                                                                       
Trade and other receivables                                            183 124      (12 672)      170 452       212 563       (9 548)      203 015   
Loans to associates and joint ventures                               1 070 696       346 370    1 417 066     1 190 590       320 295    1 510 885   
Cash and cash equivalents                                              725 244      (19 989)      705 255     1 239 631      (18 505)    1 221 126   
Total current assets                                                 2 154 087       313 709    2 467 796     2 704 290       292 242    2 996 532   
Total assets                                                        28 164 232   (1 233 536)   26 930 696    29 078 699   (1 225 644)   27 853 055   
EQUITY AND LIABILITIES                                                                                                                               
Equity                                                                                                                                               
Distributable reserves                                               7 215 581        10 665    7 226 246     9 544 296       (9 521)    9 534 775   
Available-for-sale reserve                                             286 152         9 525      295 677       279 845         9 526      289 371   
Equity attributable to owners of the                                                                                                                 
holding company                                                     14 452 122        20 190   14 472 312    17 042 125             5   17 042 130   
Non-controlling interests                                             (66 057)        66 057            -        16 705      (16 705)            -   
Total equity                                                        14 386 065        86 247   14 472 312    17 058 830      (16 700)   17 042 130   
Non-current liabilities                                                                                                                              
Long-term borrowings                                                10 372 429   (1 020 589)    9 351 840    10 527 029     (999 539)    9 527 490   
Deferred tax liabilities                                             2 079 216       (2 541)    2 076 675       178 924           (1)      178 923   
Other financial liabilities                                            214 106       (1 832)      212 274       127 869       (1 004)      126 865   
Finance lease obligation                                                85 983      (85 983)            -        88 914      (88 914)            -   
Total non-current liabilities                                       12 752 606   (1 110 945)   11 641 661    10 923 295   (1 089 458)    9 833 837   
Current liabilities                                                                                                                                  
Other financial liabilities                                            158 002     (146 069)       11 933        74 060      (53 011)       21 049   
Trade and other payables                                               301 382      (22 368)      279 014       403 550      (20 046)      383 504   
Short-term portion of long-term                                                                                                                      
borrowings                                                             214 888      (40 401)      174 487       584 525      (46 429)      538 096   
Total current liabilities                                              694 985     (208 838)      486 147     1 096 574     (119 486)      977 088   
Total liabilities                                                   13 778 167   (1 319 783)   12 458 384    12 019 869   (1 208 944)   10 810 925   
Total equity and liabilities                                        28 164 232   (1 233 536)   26 930 696    29 078 699   (1 225 644)   27 853 055   
The following information does not form                                                                                                              
part of the statement of financial position                                                                                                          
Net asset value per share (cents)                                        2 056             2        2 058         2 424             -        2 424   
Net asset value per share adjusted for                                                                                                               
deferred tax (cents)                                                     2 351             3        2 354         2 449             -        2 449   

Condensed consolidated statement of comprehensive income

                                                                     As reported                  Restated                                           
                                                                       unaudited                 unaudited   As reported                  Restated   
                                                                              31                        31       audited                 unaudited   
                                                                        December                  December       30 June                   30 June   
                                                                            2017   Restatement        2017          2018   Restatement        2018   
                                                                           R'000         R'000       R'000         R'000         R'000       R'000   
Gross revenue                                                          1 001 983      (89 152)     912 831     2 138 961     (186 452)   1 952 509   
Rental income                                                            980 055      (86 583)     893 472     2 035 494     (171 452)   1 864 042   
Straight-line lease income adjustment                                     21 928       (2 569)      19 359       103 467      (15 000)      88 467   
Property expenses                                                      (348 163)        35 782   (312 381)     (724 726)        70 878   (653 848)   
Net rental income                                                        653 820      (53 370)     600 450     1 414 235     (115 574)   1 298 661   
Other income                                                              38 445         (176)      38 269       157 675     (112 705)      44 970   
Operating expenses                                                      (75 039)             1    (75 038)     (170 256)             2   (170 254)   
Operating profit                                                         549 754      (53 545)     496 209     1 253 939     (228 277)   1 025 662   
Fair value adjustments                                                   213 406        11 417     224 823       370 265        50 621     420 886   
Investment properties                                                    252 882        11 197     264 079       328 970        51 228     380 198   
Other financial assets and liabilities                                  (39 476)           220    (39 256)        41 295         (607)      40 688   
Net income from associates and joint                                                                                                                 
ventures                                                                  38 020             -      38 020        81 706      (52 560)      29 146   
Investment income                                                         82 830        19 146     101 976       194 447        38 868     233 315   
Finance costs                                                          (456 060)        68 674   (387 386)     (950 501)       136 633   (813 868)   
Profit before taxation                                                   414 305        45 692     459 997       961 569      (54 715)     906 854   
Income tax expense                                                     (173 170)           247   (172 923)     1 749 765       (2 293)   1 747 472   
Profit for the period/year                                               241 135        45 939     287 074     2 711 334      (57 008)   2 654 326   
Attributable to:                                                                                                                                     
Owners of the holding company                                            264 105        22 969     287 074     2 651 542         2 784   2 654 326   
Non-controlling interests                                               (22 970)        22 970           -        59 792      (59 792)           -   
Total comprehensive income for the                                                                                                                   
period/year                                                              244 958        45 939     290 897     2 706 686      (57 008)   2 649 678   
Attributable to:                                                                                                                                     
Owners of the holding company                                            267 928        22 969     290 897     2 646 894         2 784   2 649 678   
Non-controlling interests                                               (22 970)        22 970           -        59 792      (59 792)           -   
Earnings per share (cents)                                                                                                                           
Basic                                                                       37.6           3.2        40.8         377.2           0.4       377.6   
Diluted                                                                     37.3           3.2        40.5         374.2           0.4       374.6   

Reconciliation between earnings and headline earnings

                                                                     As reported                  Restated                                           
                                                                       unaudited                 unaudited   As reported                  Restated   
                                                                              31                        31       audited                 unaudited   
                                                                        December                  December       30 June                   30 June   
                                                                            2017   Restatement        2017          2018   Restatement        2018   
                                                                           R'000         R'000       R'000         R'000         R'000       R'000   
Profit for the period/year                                               264 105        22 969     287 074     2 651 542         2 784   2 654 326   
Headline earnings adjustments                                          (206 079)       (4 423)   (210 502)     (426 476)        43 788   (382 688)   
Impairment of associates and other                                                                                                                   
investments                                                                6 435             -       6 435        51 197        16 624      67 821   
Fair value adjustments                                                 (213 406)      (11 417)   (224 823)     (370 265)      (50 621)   (420 886)   
Net income from associates and joint                                                                                                                 
ventures                                                                (38 020)             -    (38 020)      (33 270)        52 560      19 290   
Tax effect on adjustments                                                 53 248         2 570      55 818         4 975         (170)       4 805   
Non-controlling interests' share                                         (4 424)         4 424           -      (25 395)        25 395           -   
Headline earnings                                                         58 026        18 546      76 572     2 225 066        46 572   2 271 638   
Headline earnings per share (cents)                                                                                                                  
Basic                                                                        8.3           2.6        10.9         316.5           6.6       323.1   
Diluted                                                                      8.2           2.6        10.8         314.0           6.6       320.6   

Condensed consolidated statement of cash flows

                                                                 As reported                    Restated                                             
                                                                   unaudited                   unaudited   As reported                    Restated   
                                                                          31                          31       audited                   unaudited   
                                                                    December                    December       30 June                     30 June   
                                                                        2017   Restatement          2017          2018   Restatement          2018   
                                                                       R'000         R'000         R'000         R'000         R'000         R'000   
Cash flow generated from operating
activities                                                            54 890         8 881        63 771       380 762         3 827       384 589   
Cash generated from operations                                       339 737      (48 096)       291 641     1 019 788     (108 193)       911 595   
Investment income                                                    106 605         (868)       105 737       290 129       (1 790)       288 339   
Finance costs                                                      (378 159)        57 845     (320 314)     (899 312)       113 810     (785 502)   
Cash flow (utilised in) generated from                                                                                                               
investing activities                                               (237 968)           367     (237 601)     (119 105)         2 729     (116 376)   
Property and equipment acquired                                        (640)           238         (402)       (2 874)             -       (2 874)   
Investment properties acquired                                     (455 870)           129     (455 741)     (738 927)         2 729     (736 198)   
Cash flow generated from financing                                                                                                                   
activities                                                           460 476         1 048       461 524       530 128         5 224       535 352   
Long-term borrowings repaid                                      (1 496 779)         7 116   (1 489 663)   (2 895 275)        21 439   (2 873 836)   
Loans to associates and joint ventures                                                                                                               
repaid (advanced)                                                    135 484       (6 068)       129 416       130 649      (16 215)       114 434   
Total cash movement for the period/year                              277 398        10 296       287 694       791 785        11 780       803 565   
Cash at the beginning of the period/year                             447 846      (30 285)       417 561       447 846      (30 285)       417 561   
Total cash at the end of the period/year                             725 244      (19 989)       705 255     1 239 631      (18 505)     1 221 126   

Reconciliation of profit for the year to distributable earnings

                                                                   As reported                  Restated                                             
                                                                     unaudited                 unaudited   As reported                    Restated   
                                                                            31                        31       audited                   unaudited   
                                                                      December                  December       30 June                     30 June   
                                                                          2017   Restatement        2017          2018   Restatement          2018   
                                                                         R'000         R'000       R'000         R'000         R'000         R'000   
Profit for the period/year                                             264 105        22 969     287 074     2 651 542         2 784     2 654 326   
Fair value adjustments                                               (213 406)      (11 417)   (224 823)     (370 265)      (50 621)     (420 886)   
Net income from associates and joint                                                                                                                 
ventures                                                              (38 020)             -    (38 020)      (81 706)        52 560      (29 146)   
Non-controlling interests' share of                                                                                                                  
fair value adjustments                                                 (4 424)         4 424           -      (25 395)        25 395             -   
Straight-line lease income adjustments                                (20 644)         1 285    (19 359)      (95 967)         7 500      (88 467)   
Adjustment for net non-cash interest                                                                                                                 
from associates                                                              -             -           -      (87 613)      (40 658)     (128 271)   
Depreciation and amortisation                                           20 031         (357)      19 674        40 335         (571)        39 764   
Finance lease interest                                                   1 799       (1 799)           -         3 784       (3 784)             -   
Write-off of other trade and receivable                                      -             -           -        52 492       (4 520)        47 972   
Write-off of loan by APD net of                                                                                                                      
non-controlling interest                                                     -             -           -      (56 178)        56 178             -   
Non-cash interest accrued                                                    -             -           -         7 536       (7 536)             -   
Deferred taxation                                                      150 396         (247)     150 149   (1 771 676)         2 293   (1 769 383)   
Actual finance lease payments                                            (378)           378           -         (773)           773             -   
Distributable earnings for the period/                                                                                                               
year                                                                   273 494        15 236     288 730       527 384        39 793       567 177   
Distributable earnings per share (cents)                                                                                                             
Basic                                                                     38.9           2.2        41.1          75.0           5.7          80.7   

Prospects

Attacq expects its total dividend per share for the full year ending 30 June 2019 to be between 79.6 cps and 81.0 cps which would
result in growth of between 7.5% and 9.5% on the 2018 full year dividend. This is in line with the guidance provided in 
September 2018.

This guidance is based on the following assumptions:

-   achieving forecasted rental income based on contractual terms and anticipated market-related renewals
-   the proposed Edcon restructure commencing on 1 April 2019
-   the expected roll-out of the current and budgeted development portfolio
-   MAS paying its 2019 interim dividend
-   no unforeseen circumstances such as major corporate tenant failures or macro-economic instability occurring.

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

Declaration of a cash dividend

The board declared an interim gross cash dividend of 40.50000 cents per share, for the six months ended 31 December 2018, out
of the company's distributable income.

The dividend is payable to Attacq shareholders in accordance with the timetable set out below:

Last day of trade in order to be eligible to receive the cash dividend                                      Tuesday, 26 March   
Shares trade ex-dividend                                                                                  Wednesday, 27 March   
Record date to receive the cash dividend                                                                     Friday, 29 March   
Accounts credited by Central Securities Depository Participant (CSDP)                                                           
or broker to dematerialised shareholders with cash dividend payment                                           Monday, 1 April   
Cash dividend payment to certificated shareholders on or about                                                Monday, 1 April 

Notes:

1. Shares may not be dematerialised or rematerialised between Wednesday, 27 March 2019 and Friday, 29 March 2019, both days
   inclusive.
2. Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend 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 dividend 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 (dividend tax) in the hands of South African tax resident shareholders, provided that the South African tax
resident shareholders provide 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 exempt from dividends tax; and
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 abovementioned
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 20.0%, 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 20.0%, the net dividend amount due to non-
resident shareholders is 32.40000 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; and
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
abovementioned 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 31 December 2018 and as at the date of this announcement is 749 822 777 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 six months period under review,
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 period under review, 240 000 shares were issued in terms of long-term incentive awards.

Change in directors

There were no changes in directors during the reporting period.

Basis of preparation and accounting policies

The condensed unaudited consolidated interim financial statements for the six months ended 31 December 2018 have been
prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34: Interim Financial Reporting, the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued
by the Financial Reporting Standards Council, the JSE Listings Requirements and the requirements of the Companies Act of South
Africa. These interim results was compiled under the supervision of R Nana CA(SA), CFO of Attacq.

The accounting policies applied in the preparation of the condensed unaudited consolidated interim financial statements are in
terms of IFRS and are consistent with the accounting policies applied in the preparation of the previous consolidated annual
financial statements for the year ended 30 June 2018, with the exception of the adoption of new and revised standards i.e.
IFRS  9:  Financial Instruments and IFRS 15: Revenue from contracts with customers which became effective during the period.
Based on management's assessment, the amendments to the applicable accounting standards and adoption thereof do not have a
material impact on the group's interim financial statements.

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

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

On behalf of the board

P Tredoux                                                        M Hamman
Chairman                                                         CEO

5 March 2019


Condensed consolidated statement of financial position

                                                                                                                             Restated     Restated   
                                                                                                              Unaudited     unaudited    unaudited   
                                                                                                            31 December   31 December      30 June   
                                                                                                                   2018          2017         2018   
                                                                                                                  R'000         R'000        R'000   
ASSETS                                                                                                                                               
Non-current assets                                                                                                                                   
Property and equipment                                                                                           37 083        45 629       41 221   
Investment properties                                                                                        20 369 160    18 842 783   19 791 145   
Per valuation                                                                                                21 292 503    19 607 122   20 633 168   
Straight-line lease debtor                                                                                    (923 343)     (764 339)    (842 023)   
Straight-line lease debtor                                                                                      923 343       764 339      842 023   
Deferred initial lease expenditure                                                                                8 129         7 079        9 275   
Intangible assets                                                                                               256 520       276 894      266 502   
Goodwill                                                                                                         67 774        67 774       67 774   
Investment in associates and joint ventures                                                                   3 329 163     3 191 685    3 345 562   
Other financial assets                                                                                          388 307       361 280      373 651   
Other investments                                                                                                   488        12 456          488   
Deferred tax assets                                                                                                   -            11           11   
Total non-current assets                                                                                     25 379 967    23 569 930   24 737 652   
Current assets                                                                                                                                       
Taxation receivable                                                                                               2 713             -        2 714   
Trade and other receivables                                                                                     225 707       170 452      203 015   
Inventory                                                                                                        93 078        34 592       42 484   
Loans to associates and joint ventures                                                                        1 283 417     1 417 066    1 510 885   
Other financial assets                                                                                           26 822       140 431       16 308   
Cash and cash equivalents                                                                                       728 347       705 255    1 221 126   
Total current assets                                                                                          2 360 084     2 467 796    2 996 532   
Non-current assets held for sale                                                                                176 744       892 970      118 871   
Total assets                                                                                                 27 916 795    26 930 696   27 853 055   
EQUITY AND LIABILITIES                                                                                                                               
Equity                                                                                                                                               
Stated capital                                                                                                6 462 389     6 458 912    6 460 108   
Distributable reserves                                                                                        9 052 751     7 226 246    9 534 775   
Available-for-sale reserve                                                                                      283 506       295 677      289 371   
Share-based payment reserve                                                                                     106 511       107 738      117 390   
Foreign currency translation reserve                                                                            839 868       487 954      744 701   
Acquisition of non-controlling interests reserve                                                              (104 215)     (104 215)    (104 215)   
Equity attributable to owners of the holding company                                                         16 640 810    14 472 312   17 042 130   
Total equity                                                                                                 16 640 810    14 472 312   17 042 130
Non-current liabilities                                                                                                                              
Long-term borrowings                                                                                         10 007 313     9 351 840    9 527 490   
Deferred tax liabilities                                                                                        185 367     2 076 675      178 923   
Other financial liabilities                                                                                     141 955       212 274      126 865   
Cash-settled share-based payments                                                                                   376           872          559   
Total non-current liabilities                                                                                10 335 011    11 641 661    9 833 837   
Current liabilities                                                                                                                                  
Other financial liabilities                                                                                      38 668        11 933       21 049   
Taxation payable                                                                                                  3 354        16 195        1 496   
Cash-settled share-based payments                                                                                   329         1 873          747   
Trade and other payables                                                                                        361 735       279 014      383 504   
Provisions                                                                                                       33 802         2 645       32 196   
Short-term portion of long-term borrowings                                                                      503 086       174 487      538 096   
Total current liabilities                                                                                       940 974       486 147      977 088   
Liabilities directly associated with non-current assets held for sale                                                 -       330 576            -   
Total liabilities                                                                                            11 275 985    12 458 384   10 810 925   
Total equity and liabilities                                                                                 27 916 795    26 930 696   27 853 055   
The following information does not form part of the statement                                                                                        
of financial position                                                                                                                                
Net asset value per share (cents)                                                                                 2 366         2 058        2 424   
Net asset value per share adjusted for deferred tax (cents)                                                       2 392         2 354        2 449   


Condensed consolidated statement of comprehensive income

                                                                                                                              Restated    Restated   
                                                                                                               Unaudited     unaudited   unaudited   
                                                                                                             31 December   31 December     30 June   
                                                                                                                    2018          2017        2018   
                                                                                                                   R'000         R'000       R'000   
Gross revenue                                                                                                  1 085 320       912 831   1 952 509   
Rental income                                                                                                  1 004 001       893 472   1 864 042   
Straight-line lease income adjustment                                                                             81 319        19 359      88 467   
Property expenses                                                                                              (365 346)     (312 381)   (653 848)   
Net rental income                                                                                                719 974       600 450   1 298 661   
Sale of inventory                                                                                                 21 746             -      29 865   
Cost of sales                                                                                                   (21 121)             -    (24 918)   
Other income                                                                                                      39 523        38 269      44 970   
Operating expenses                                                                                              (83 508)      (75 038)   (170 254)   
Other expenses                                                                                                 (422 904)      (67 472)   (152 662)   
Operating profit                                                                                                 253 710       496 209   1 025 662   
Amortisation of intangible asset                                                                                 (9 982)      (13 645)    (24 037)   
Fair value adjustments                                                                                            71 103       224 823     420 886   
Investment properties                                                                                             86 962       264 079     380 198   
Other financial assets and liabilities                                                                          (15 859)      (39 256)      40 688   
Gain on available-for-sale financial assets                                                                            -             -      35 750   
Net income from associates and joint ventures                                                                     24 007        38 020      29 146   
Investment income                                                                                                138 552       101 976     233 315   
Finance costs                                                                                                  (435 576)     (387 386)   (813 868)   
Profit before taxation                                                                                            41 814       459 997     906 854   
Income tax (expense)/credit                                                                                     (10 482)     (172 923)   1 747 472   
Profit for the period/year                                                                                        31 332       287 074   2 654 326   
Attributable to:                                                                                                                                     
Owners of the holding company                                                                                     31 332       287 074   2 654 326   
Other comprehensive income                                                                                                                           
Items that will be reclassified subsequently to profit and loss                                                                                      
(Loss) gain on available-for-sale financial assets                                                               (5 867)         3 822      27 686   
Taxation relating to components of other comprehensive income                                                          3             1           2   
Realisation of available-for-sale financial assets                                                                     -             -    (32 336)   
Other comprehensive (loss)/income for the period/year net of taxation                                            (5 864)         3 823     (4 648)   
Total comprehensive income for the period/year                                                                    25 468       290 897   2 649 678   
Attributable to:                                                                                                                                     
Owners of the holding company                                                                                     25 468       290 897   2 649 678   
Earnings per share (cents)                                                                                                                           
Basic                                                                                                                4.5          40.8       377.6   
Diluted                                                                                                              4.4          40.5       374.6   


Reconciliation between earnings and headline earnings

                                                                                                                            Restated      Restated   
                                                                                                             Unaudited     unaudited     unaudited   
                                                                                                           31 December   31 December       30 June   
                                                                                                                  2018          2017          2018   
                                                                                                                 R'000         R'000         R'000   
Profit for the period/year                                                                                      31 332       287 074     2 654 326   
Headline earnings adjustments                                                                                  169 696     (210 502)     (382 688)   
Profit on disposal of subsidiary                                                                                     -             -       (5 633)   
Loss on disposal of associate                                                                                    2 597             -             -   
(Profit)/loss on disposal of other investments                                                                 (2 180)             -         2 612   
Profit on disposal of investment property                                                                            -       (9 912)      (14 947)   
Impairment of associates and other investments                                                                 389 617         6 435        67 821   
Realisation of available-for-sale financial assets                                                                   -             -      (35 750)   
Fair value adjustments                                                                                        (71 103)     (224 823)     (420 886)   
Net (income)/loss from associates and joint ventures                                                          (79 055)      (38 020)        19 290   
Tax effect of adjustments                                                                                     (70 180)        55 818         4 805   
Headline earnings                                                                                              201 028        76 572     2 271 638   
Number of shares in issue*                                                                                 703 395 224   703 055 224   703 155 224   
Weighted average number of shares in issue*                                                                703 178 702   702 838 702   702 989 909   
Diluted weighted average number of shares in issue*                                                        711 327 206   708 544 674   708 584 902   
Headline earnings per share (cents)                                                                                                                  
Basic                                                                                                             28.6          10.9         323.1   
Diluted                                                                                                           28.3          10.8         320.6   

* Adjusted for 46 427 553 treasury shares


Condensed consolidated statement of cash flows

                                                                                                                            Restated      Restated   
                                                                                                             Unaudited     unaudited     unaudited   
                                                                                                           31 December   31 December       30 June   
                                                                                                                  2018          2017          2018   
                                                                                                                 R'000         R'000         R'000   
Cash flow generated from operating activities                                                                  227 943        63 771       384 589   
Cash generated from operations                                                                                 466 061       291 641       911 595   
Investment income                                                                                              197 028       105 737       288 339   
Finance costs                                                                                                (432 980)     (320 314)     (785 502)   
Taxation paid                                                                                                  (2 166)      (13 293)      (29 843)   
Cash flow utilised in investing activities                                                                   (554 218)     (237 601)     (116 376)   
Property and equipment acquired                                                                                (1 545)         (402)       (2 874)   
Property and equipment disposed                                                                                      -             -           284   
Investment properties acquired                                                                               (528 600)     (455 741)     (736 198)   
Investment properties disposed                                                                                       -             -        62 584   
Associates and joint ventures acquired                                                                               -             -       (2 667)   
Associates and joint ventures disposed                                                                               -        23 620       253 977   
Other investments disposed                                                                                           -             -        11 969   
Other financial assets (repaid)/raised                                                                        (25 170)       (3 753)        98 074   
Additions to deferred initial lease adjustments                                                                (4 030)       (3 601)       (3 804)   
Cash flow relating to non-current assets held for sale                                                           5 127       202 276       202 279   
Cash flow (utilised in)/generated from financing activities                                                  (166 504)       461 524       535 352   
Capital raised                                                                                                   2 281         2 279         3 475   
Dividends paid                                                                                               (520 334)             -             -   
Settlement of share-based payment                                                                             (14 389)         2 236      (13 678)   
Long-term borrowings raised                                                                                    384 445     1 848 047     3 358 695   
Long-term borrowings repaid                                                                                    (8 966)   (1 489 663)   (2 873 836)   
Loans to associates and joint ventures (advanced) repaid                                                      (26 391)       129 416       114 434   
Other financial liabilities raised (repaid)                                                                     16 850      (30 791)      (53 738)   
Total cash movement for the period/year                                                                      (492 779)       287 694       803 565   
Cash at the beginning of the period/year                                                                     1 221 126       417 561       417 561   
Total cash at the end of the period/year                                                                       728 347       705 255     1 221 126   


Condensed consolidated statement of changes in equity

                                                                                                Acquisition        Equity                            
                                                                                       Foreign      of non-  attributable                            
                                                          Available-  Share-based     currency  controlling  to owners of         Non-               
                                   Stated  Distributable    for-sale      payment  translation    interests   the holding  controlling       Total   
                                  capital       reserves     reserve      reserve      reserve      reserve       company    interests      equity   
                                    R'000          R'000       R'000        R'000        R'000        R'000         R'000        R'000       R'000   
Audited balance as                                                                                                                                   
reported at 1 July 2017         6 456 633      6 945 483     282 329      128 216      238 254    (104 215)    13 946 700     (43 087)  13 903 613   
Restatement                             -       (12 304)       9 525            -            -            -       (2 779)       43 087      40 308   
Balance at 1 July 2017                                                                                                                               
- restated                      6 456 633      6 933 179     291 854      128 216      238 254    (104 215)    13 943 921            -  13 943 921   
Total comprehensive                                                                                                                                  
income                                  -        287 074       3 823            -            -            -       290 897            -     290 897   
Profit for the period                   -        287 074           -            -            -            -       287 074            -     287 074   
Other comprehensive                                                                                                                                  
profit                                  -              -       3 823            -            -            -         3 823            -       3 823   
Foreign currency                                                                                                                                     
translation reserve                     -              -           -            -      249 700            -       249 700            -     249 700   
Issue of shares                     2 279              -           -            -            -            -         2 279            -       2 279   
Transfer between reserves               -          5 993           -     (15 304)            -            -       (9 311)            -     (9 311)   
Settlement of share-based                                                                                                                            
payment transaction                     -              -           -     (11 198)            -            -      (11 198)            -    (11 198)   
Recognition of share-                                                                                                                                
based payment reserve                   -              -           -        6 024            -            -         6 024            -       6 024   
Unaudited balance at                                                                                                                                 
31 December 2017 -                                                                                                                                   
restated                        6 458 912      7 226 246     295 677      107 738      487 954    (104 215)    14 472 312            -  14 472 312   
Total comprehensive                                                                                                                                  
income                                  -      2 367 252     (8 471)            -            -            -     2 358 781            -   2 358 781   
Profit for the period                   -      2 367 252           -            -            -            -     2 367 252            -   2 367 252   
Other comprehensive                                                                                                                                  
loss                                    -              -     (8 471)            -            -            -       (8 471)            -     (8 471)   
Issue of shares                     1 196              -           -            -            -            -         1 196            -       1 196   
Derecognition of reserves                                                                                                                            
due to sale of subsidiary               -       (59 698)       2 164            -            -            -      (57 534)            -    (57 534)   
Transfer between reserves               -            976           -          227            -            -         1 203            -       1 203   
Settlement of share-based                                                                                                                            
payment transaction                     -              -           -      (3 763)            -            -       (3 763)            -     (3 763)   
Recognition of share-                                                                                                                                
based payment reserve                   -              -           -       13 188            -            -        13 188            -      13 188   
Unaudited balance at
30 June 2018 - restated         6 460 108      9 534 775     289 371      117 390      744 701    (104 215)    17 042 130            -  17 042 130   
Total comprehensive                                                                                                                                  
income                                  -         31 332     (5 864)            -            -            -        25 468            -      25 468   
Profit for the period                   -         31 332           -            -            -            -        31 332            -      31 332   
Other comprehensive                                                                                                                                  
loss                                    -              -     (5 864)            -            -            -       (5 864)            -     (5 864)   
Foreign currency                                                                                                                                     
translation reserve                     -              -           -            -       95 167            -        95 167            -      95 167   
Issue of shares                     2 281              -           -            -            -            -         2 281            -       2 281   
Settlement of share-based                                                                                                                            
payment transaction                     -              -           -     (14 865)            -            -      (14 865)            -    (14 865)   
Dividends                               -      (520 334)           -            -            -            -     (520 334)            -   (520 334)   
Transfer between reserves               -          6 977           -      (6 977)            -            -             -            -           -   
Recognition of share-                                                                                                                                
based payment reserve                   -              -           -       10 963            -            -        10 963            -      10 963   
Unaudited balance at                                                                                                                                 
31 December 2018                6 462 389      9 052 751     283 506      106 511      839 868    (104 215)    16 640 810            -  16 640 810   


Unaudited condensed segmental analysis
31 December 2018

                                                                                                    Office and                                       
                                                                                                     mixed use       Retail   Industrial     Hotel   
                                                                                                         R'000        R'000        R'000     R'000   
STATEMENT OF FINANCIAL POSITION                                                                                                                      
Investment property                                                                                  6 693 022    9 778 866    1 402 250   318 587   
Waterfall developments                                                                                       -            -            -         -   
Developments under construction                                                                              -            -            -         -   
Waterfall development rights                                                                                 -            -            -         -   
Infrastructure and services                                                                                  -            -            -         -   
Straight-line lease debtor                                                                             553 808      239 034      116 352    14 149   
Intangible assets and goodwill                                                                               -            -            -         -   
Investments in associates and joint ventures                                                               978       37 619       91 025         -   
Other financial assets                                                                                 352 526       22 394        6 913         -   
Loans to associates and joint ventures                                                                       -            -           69         -   
Trade and other receivables                                                                             43 240       75 980       13 180     1 230   
Cash and cash equivalents                                                                               44 740      106 900        7 164        54   
Inventory                                                                                                    -            -            -         -   
Non-current assets held for sale                                                                             -            -      108 204         -   
Other assets                                                                                             2 673            -            -         -   
Total assets                                                                                         7 690 987   10 260 793    1 745 157   334 020   
Interest-bearing borrowings                                                                                  -            -            -         -   
Other financial liabilities                                                                                  -            -       12 807         -   
Deferred tax liabilities                                                                                     -            -            -         -   
Trade and other payables                                                                               101 119      151 932       25 723     1 091   
Other liabilities                                                                                            -            -            -         -   
Total liabilities                                                                                      101 119      151 932       38 530     1 091   
STATEMENT OF COMPREHENSIVE INCOME                                                                                                                    
Rental income                                                                                          356 074      551 073       72 574    19 165   
Straight-line lease income adjustment                                                                   62 380        3 366       16 775   (1 202)   
Property expenses                                                                                    (121 907)    (214 682)     (22 049)   (6 061)   
Net rental income                                                                                      296 547      339 757       67 300    11 902   
Sale of inventory                                                                                       32 267            -     (10 521)         -   
Cost of sales                                                                                         (29 517)            -        8 396         -   
Other income                                                                                                 -            -            -         -   
Operating expenses                                                                                    (16 721)     (16 082)      (3 510)     (288)   
Other expenses                                                                                               -            -            -         -   
Operating profit (loss)                                                                                282 576      323 675       61 665    11 614   
Amortisation of intangible assets                                                                            -            -            -         -   
Fair value adjustments                                                                                (58 956)       74 344     (12 466)     6 110   
Net income from associates                                                                                  24      (2 502)        3 463         -   
Investment income                                                                                       19 273        2 990           44        12   
Finance costs                                                                                                -            -            -         -   
Profit (loss) before tax                                                                               242 917      398 507       52 706    17 736   
Taxation                                                                                                     -            -            -         -   
Profit (loss) for the period attributable to owners                                                    242 917      398 507       52 706    17 736 
  

                                                         Waterfall                                                         Head office               
                                                      developments  Head office SA    Total SA        MAS  Rest of Africa       Global       Total   
                                                             R'000           R'000       R'000      R'000           R'000        R'000       R'000   
STATEMENT OF FINANCIAL POSITION                       
Investment property                                              -           5 000  18 197 725          -               -            -  18 197 725   
Waterfall developments                                   2 171 435               -   2 171 435          -               -            -   2 171 435   
Developments under construction                            597 594               -     597 594          -               -            -     597 594   
Waterfall development rights                               857 075               -     857 075          -               -            -     857 075   
Infrastructure and services                                716 766               -     716 766          -               -            -     716 766   
Straight-line lease debtor                                       -               -     923 343          -               -            -     923 343   
Intangible assets and goodwill                                   -         324 294     324 294          -               -            -     324 294   
Investments in associates and joint ventures                   963          15 748     146 333  3 182 830               -            -   3 329 163   
Other financial assets                                           -          22 771     404 604     10 525               -            -     415 129   
Loans to associates and joint ventures                     144 685         331 680     476 434          -         806 983            -   1 283 417   
Trade and other receivables                                 72 071          19 987     225 688          -               -           19     225 707   
Cash and cash equivalents                                      129         502 985     661 972          -               -       66 375     728 347   
Inventory                                                   93 078               -      93 078          -               -            -      93 078   
Non-current assets held for sale                            67 777             763     176 744          -               -            -     176 744   
Other assets                                                     -          45 740      48 413          -               -            -      48 413   
Total assets                                             2 550 138       1 268 968  23 850 063  3 193 355         806 983       66 394  27 916 795   
Interest-bearing borrowings                                      -       9 038 478   9 038 478          -               -    1 471 921  10 510 399   
Other financial liabilities                                      -         166 765     179 572          -               -        1 051     180 623   
Deferred tax liabilities                                         -          46 996      46 996    138 371               -            -     185 367   
Trade and other payables                                    55 412          26 418     361 695          -               -           40     361 735   
Other liabilities                                           27 029          10 424      37 453          -               -          408      37 861   
Total liabilities                                           82 441       9 289 081   9 664 194    138 371               -    1 473 420  11 275 985   
STATEMENT OF COMPREHENSIVE INCOME                           
Rental income                                                    -           5 115   1 004 001          -               -            -   1 004 001   
Straight-line lease income adjustment                            -               -      81 319          -               -            -      81 319   
Property expenses                                                -           (647)   (365 346)          -               -            -   (365 346)   
Net rental income                                                -           4 468     719 974          -               -            -     719 974   
Sale of inventory                                                -               -      21 746          -               -            -      21 746   
Cost of sales                                                    -               -    (21 121)          -               -            -    (21 121)   
Other income                                                     -           2 816       2 816     12 848          21 221        2 638      39 523   
Operating expenses                                               -        (46 907)    (83 508)          -               -            -    (83 508)   
Other expenses                                            (16 213)        (24 581)    (40 794)          -       (382 110)            -   (422 904)   
Operating profit (loss)                                   (16 213)        (64 204)     599 113     12 848       (360 889)        2 638     253 710   
Amortisation of intangible assets                                -         (9 982)     (9 982)          -               -            -     (9 982)   
Fair value adjustments                                      77 930        (16 552)      70 410          -               -          693      71 103   
Net income from associates                                   (795)         (1 280)     (1 090)     41 683        (16 586)            -      24 007   
Investment income                                                -          48 044      70 363          -          68 189            -     138 552   
Finance costs                                                    -       (417 705)   (417 705)          -               -     (17 871)   (435 576)   
Profit (loss) before tax                                    60 922       (461 679)     311 109     54 531       (309 286)     (14 540)      41 814   
Taxation                                                         -           1 831       1 831   (11 912)               -        (401)    (10 482)   
Profit (loss) for the period attributable to owners         60 922       (459 848)     312 940     42 619       (309 286)     (14 941)      31 332  

31 December 2017

                                                                                                     Office and                                      
                                                                                                      mixed use      Retail   Industrial     Hotel   
                                                                                                          R'000       R'000        R'000     R'000   
STATEMENT OF FINANCIAL POSITION                                                                                                                      
Investment property                                                                                   6 011 433   9 522 341    1 286 167   309 043   
Waterfall developments                                                                                        -           -            -         -   
Developments under construction                                                                               -           -            -         -   
Waterfall development rights                                                                                  -           -            -         -   
Infrastructure and services                                                                                   -           -            -         -   
Straight-line lease debtor                                                                              475 055     213 643       59 631    16 010   
Intangible assets and goodwill                                                                                -           -            -         -   
Investments in associates and joint ventures                                                                932      37 621       90 564         -   
Other financial assets                                                                                   42 636      71 860            -         -   
Loans to associates and joint ventures                                                                        -           -      138 859         -   
Trade and other receivables                                                                              28 904      55 531        3 543     1 255   
Cash and cash equivalents                                                                                31 047      80 293        1 487         2   
Inventory                                                                                                27 726           -        6 866         -   
Non-current assets held for sale                                                                        550 548           -            -         -   
Other assets                                                                                                  -           -            -         -   
Total assets                                                                                          7 168 281   9 981 289    1 587 117   326 310   
Interest-bearing borrowings                                                                                   -           -            -         -   
Other financial liabilities                                                                                   -           -        9 685         -   
Deferred tax liabilities                                                                                      -           -            -         -   
Trade and other payables                                                                                 84 386     135 022       23 657     1 861   
Liabilities held for sale                                                                                     -           -            -         -   
Other liabilities                                                                                             -           -            -         -   
Total liabilities                                                                                        84 386     135 022       33 342     1 861   
STATEMENT OF COMPREHENSIVE INCOME                                                                                                                    
Rental income                                                                                           294 776     527 096       47 059    18 340   
Straight-line lease income adjustment                                                                     9 765       6 578        3 332     (316)   
Property expenses                                                                                      (75 720)   (209 519)     (13 154)   (5 982)   
Net rental income                                                                                       228 821     324 155       37 237    12 042   
Other income                                                                                             10 014          33            -         -   
Operating expenses                                                                                     (17 743)    (21 334)      (3 012)     (339)   
Other expenses                                                                                                -           -            -         -   
Operating profit (loss)                                                                                 221 092     302 854       34 225    11 703   
Amortisation of intangible assets                                                                             -           -            -         -   
Fair value adjustments                                                                                   11 804     203 333       11 592    12 504   
Net income from associates                                                                                    -     (6 664)      (1 026)         -   
Investment income                                                                                         4 899       5 060            4         -   
Finance costs                                                                                                 -           -            -         -   
Profit (loss) before tax                                                                                237 795     504 583       44 795    24 207   
Taxation                                                                                                      -           -            -         -   
Profit (loss) for the period attributable to owners                                                     237 795     504 583       44 795    24 207  
 

                                                       Waterfall                                                          Head office              
                                                    developments  Head office SA    Total SA         MAS  Rest of Africa       Global        Total 
                                                           R'000           R'000       R'000       R'000           R'000        R'000        R'000 
STATEMENT OF FINANCIAL POSITION                       
Investment property                                            -           5 000  17 133 984           -               -            -   17 133 984 
Waterfall developments                                 1 708 799               -   1 708 799           -               -            -    1 708 799 
Developments under construction                          138 070               -     138 070           -               -            -      138 070 
Waterfall development rights                             937 779               -     937 779           -               -            -      937 779 
Infrastructure and services                              632 950               -     632 950           -               -            -      632 950 
Straight-line lease debtor                                     -               -     764 339           -               -            -      764 339 
Intangible assets and goodwill                                 -         344 668     344 668           -               -            -      344 668 
Investments in associates and joint ventures                   -          12 404     141 521   2 950 461          59 115       40 588    3 191 685 
Other financial assets                                         -         385 740     500 236           -           1 475            -      501 711 
Loans to associates and joint ventures                         -         347 365     486 224           -         892 840       38 002    1 417 066 
Trade and other receivables                               44 692          36 395     170 320           -               -          132      170 452 
Cash and cash equivalents                                      -         482 565     595 394           -               -      109 861      705 255 
Inventory                                                      -               -      34 592           -               -            -       34 592 
Non-current assets held for sale                         152 982             775     704 305           -         185 951        2 714      892 970 
Other assets                                                   -          53 206      53 206           -               -       11 969       65 175 
Total assets                                           1 906 473       1 668 118  22 637 588   2 950 461       1 139 381      203 266   26 930 696 
Interest-bearing borrowings                                    -       8 091 810   8 091 810           -               -    1 434 517    9 526 327 
Other financial liabilities                                    -         212 465     222 150           -               -        2 057      224 207 
Deferred tax liabilities                                       -       1 956 047   1 956 047      86 324          34 304            -    2 076 675 
Trade and other payables                                  20 230          13 835     278 991           -               -           23      279 014 
Liabilities held for sale                                      -         330 576     330 576           -               -            -      330 576 
Other liabilities                                              -          21 561      21 561           -               -           24       21 585 
Total liabilities                                         20 230      10 626 294  10 901 135      86 324          34 304    1 436 621   12 458 384 
STATEMENT OF COMPREHENSIVE INCOME                           
Rental income                                                  -           6 201     893 472           -               -            -      893 472 
Straight-line lease income adjustment                          -               -      19 359           -               -            -       19 359 
Property expenses                                              -         (8 006)   (312 381)           -               -            -    (312 381) 
Net rental income                                              -         (1 805)     600 450           -               -            -      600 450 
Other income                                                   -          10 423      20 470           -          17 799            -       38 269 
Operating expenses                                             -        (30 935)    (73 363)           -               -      (1 675)     (75 038) 
Other expenses                                           (2 792)        (10 284)    (13 076)           -        (54 396)            -     (67 472) 
Operating profit (loss)                                  (2 792)        (32 601)     534 481           -        (36 597)      (1 675)      496 209 
Amortisation of intangible assets                              -        (13 645)    (13 645)           -               -            -     (13 645) 
Fair value adjustments                                    24 846        (38 536)     225 543           -               -        (720)      224 823 
Net income from associates                                     -               -     (7 690)      41 801         (7 551)       11 460       38 020 
Investment income                                             79          28 129      38 171           -          60 723        3 082      101 976 
Finance costs                                                  -       (371 111)   (371 111)           -               -     (16 275)    (387 386) 
Profit (loss) before tax                                  22 133       (427 764)     405 749      41 801          16 575      (4 128)      459 997 
Taxation                                                       -       (123 359)   (123 359)    (49 538)               -         (26)    (172 923) 
Profit (loss) for the period attributable to owners       22 133       (551 123)     282 390     (7 737)          16 575      (4 154)      287 074 

30 June 2018

                                                                                                   Office and                                       
                                                                                                    mixed use       Retail   Industrial      Hotel   
                                                                                                        R'000        R'000        R'000      R'000   
STATEMENT OF FINANCIAL POSITION                                                                                                                      
Investment property                                                                                 6 674 605    9 639 616    1 286 827    312 477   
Waterfall developments                                                                                      -            -            -          -   
Developments under construction                                                                             -            -            -          -   
Waterfall development rights                                                                                -            -            -          -   
Infrastructure and services                                                                                 -            -            -          -   
Straight-line lease debtor                                                                            491 428      235 667       99 577     15 351   
Intangible assets and goodwill                                                                              -            -            -          -   
Investments in associates and joint ventures                                                              954       40 121       91 619          -   
Other financial assets                                                                                 22 920       13 288            -          -   
Loans to associates and joint ventures                                                                      -            -      143 247          -   
Trade and other receivables                                                                           106 650       63 070       23 286      2 367   
Cash and cash equivalents                                                                              67 398       89 325        5 862        151   
Inventory                                                                                              42 484            -            -          -   
Non-current assets held for sale                                                                            -            -            -          -   
Other assets                                                                                            3 000            -            -          -   
Total assets                                                                                        7 409 439   10 081 087    1 650 418    330 346   
Interest-bearing borrowings                                                                                 -            -            -          -   
Other financial liabilities                                                                                 -            -       12 807          -   
Deferred tax liabilities                                                                                    -            -            -          -   
Trade and other payables                                                                              186 261      135 957       33 113      2 630   
Other liabilities                                                                                           -            -            -          -   
Total liabilities                                                                                     186 261      135 957       45 920      2 630   
STATEMENT OF COMPREHENSIVE INCOME                                                                                                                    
Rental income                                                                                         650 477    1 058 450      107 598     34 880   
Straight-line lease income adjustment                                                                  17 561       28 604       43 278      (976)   
Property expenses                                                                                   (202 340)    (422 464)     (32 000)   (10 248)   
Net rental income                                                                                     465 698      664 590      118 876     23 656   
Sale of inventory                                                                                      19 344            -       10 521          -   
Cost of sales                                                                                        (16 522)            -      (8 396)          -   
Other income                                                                                           16 708           31            -          -   
Operating expenses                                                                                   (30 848)     (31 927)      (5 972)      (562)   
Other expenses                                                                                        (7 918)     (13 395)      (2 231)          -   
Operating profit (loss)                                                                               446 462      619 299      112 798     23 094   
Amortisation of intangible assets                                                                           -            -            -          -   
Fair value adjustments                                                                                 99 784      263 650     (10 842)     15 939   
Gain on available for sale financial assets                                                                 -            -            -          -   
Net income from associates                                                                                 36      (4 164)        9 668          -   
Investment income                                                                                       3 119        7 779           13          6   
Finance costs                                                                                               -            -            -          -   
Profit (loss) before tax                                                                              549 401      886 564      111 637     39 039   
Taxation                                                                                                    -            -            -          -   
Profit (loss) for the year attributable to owners                                                     549 401      886 564      111 637     39 039  
 

                                                     Waterfall                                                            Head office                
                                                  developments  Head office SA    Total SA         MAS   Rest of Africa        Global        Total   
                                                         R'000           R'000       R'000       R'000            R'000         R'000        R'000   
STATEMENT OF FINANCIAL POSITION                   
Investment property                                          -           5 000  17 918 525           -                -             -   17 918 525   
Waterfall developments                               1 872 620               -   1 872 620           -                -             -    1 872 620   
Developments under construction                        346 441               -     346 441           -                -             -      346 441   
Waterfall development rights                           879 324               -     879 324           -                -             -      879 324   
Infrastructure and services                            646 855               -     646 855           -                -             -      646 855   
Straight-line lease debtor                                   -               -     842 023           -                -             -      842 023   
Intangible assets and goodwill                               -         334 276     334 276           -                -             -      334 276   
Investments in associates and joint ventures                 -          19 092     151 786   3 145 828           47 948             -    3 345 562   
Other financial assets                                       -         353 751     389 959           -                -             -      389 959   
Loans to associates and joint ventures                       -         323 109     466 356           -        1 044 529             -    1 510 885   
Trade and other receivables                                  -           7 587     202 960           -                -            55      203 015   
Cash and cash equivalents                                    -         990 152   1 152 888           -                -        68 238    1 221 126   
Inventory                                                    -               -      42 484           -                -             -       42 484   
Non-current assets held for sale                       115 149             775     115 924           -                -         2 947      118 871   
Other assets                                                 -          50 709      53 709           -                -             -       53 709   
Total assets                                         1 987 769       2 084 451  23 543 510   3 145 828        1 092 477        71 240   27 853 055   
Interest-bearing borrowings                                  -       8 634 578   8 634 578           -                -     1 431 008   10 065 586   
Other financial liabilities                                  -         133 393     146 200           -                -         1 714      147 914   
Deferred tax liabilities                                     -          48 840      48 840     130 083                -             -      178 923   
Trade and other payables                                     -          25 532     383 493           -                -            11      383 504   
Other liabilities                                       25 476           8 026      33 502           -                -         1 496       34 998   
Total liabilities                                       25 476       8 850 369   9 246 613     130 083                -     1 434 229   10 810 925   
STATEMENT OF COMPREHENSIVE INCOME                       
Rental income                                                -          12 637   1 864 042           -                -             -    1 864 042   
Straight-line lease income adjustment                        -               -      88 467           -                -             -       88 467   
Property expenses                                            -          13 204   (653 848)           -                -             -    (653 848)   
Net rental income                                            -          25 841   1 298 661           -                -             -    1 298 661   
Sale of inventory                                            -               -      29 865           -                -             -       29 865   
Cost of sales                                                -               -    (24 918)           -                -             -     (24 918)   
Other income                                                 -          23 017      39 756           -            5 214             -       44 970   
Operating expenses                                           -        (95 767)   (165 076)           -                -       (5 178)    (170 254)   
Other expenses                                        (39 500)         (1 773)    (64 817)           -         (83 490)       (4 355)    (152 662)   
Operating profit (loss)                               (39 500)        (48 682)   1 113 471           -         (78 276)       (9 533)    1 025 662   
Amortisation of intangible assets                            -        (24 037)    (24 037)           -                -             -     (24 037)   
Fair value adjustments                                  11 667          40 887     421 085           -                -         (199)      420 886   
Gain on available for sale financial assets                  -          35 750      35 750           -                -             -       35 750   
Net income from associates                                   -        (57 150)    (51 610)      68 774              908        11 074       29 146   
Investment income                                            -          97 997     108 914           -          120 619         3 782      233 315   
Finance costs                                                -       (779 960)   (779 960)           -                -      (33 908)    (813 868)   
Profit (loss) before tax                              (27 833)       (735 195)     823 613      68 774           43 251      (28 784)      906 854   
Taxation                                                     -       1 842 193   1 842 193    (93 297)                -       (1 424)    1 747 472   
Profit (loss) for the year attributable to owners     (27 833)       1 106 998   2 665 806    (24 523)           43 251      (30 208)    2 654 326   


Reconciliation of profit
for the year to distributable earnings

                                                                                                                Office and                           
                                                                                                     Dec 2018    mixed use     Retail   Industrial   
Unaudited distributable earnings                                                                        R'000        R'000      R'000        R'000   
Profit/(loss) for the period                                                                           31 332      242 917    398 507       52 706   
Loss on disposal of associate                                                                           2 597            -          -            -   
Profit on disposal of other investments                                                               (2 180)            -          -            -   
Impairment of associates, other investments                                                                                                          
and loans                                                                                             389 617            -          -            -   
Fair value adjustments                                                                               (71 103)       58 956   (74 344)       12 466   
Net income from associates and joint ventures                                                        (24 007)         (24)      2 502      (3 463)   
Straight-line lease income adjustments                                                               (81 319)     (62 380)    (3 366)     (16 775)   
Adjustment for net non-cash interest from Africa                                                     (64 786)            -          -            -   
Net cash interest received from Africa                                                                 31 405            -          -            -   
Depreciation and amortisation                                                                          18 631            -          -            -   
Foreign currency translation effect                                                                  (19 867)            -          -            -   
Dividends received from associates                                                                     99 600            -          -        2 300   
Deferred taxation                                                                                       6 457            -          -            -   
Distributable earnings                                                                                316 377      239 469    323 299       47 234   

                                                                   Waterfall                                                           Head office   
                                                        Hotel   developments   Head office SA   Total SA        MAS   Rest of Africa        Global   
Unaudited distributable earnings                        R'000          R'000            R'000      R'000      R'000            R'000         R'000   
Profit/(loss) for the period                           17 736         60 922        (460 047)    312 741     42 619        (309 286)      (14 742)   
Loss on disposal of associate                               -              -            2 597      2 597          -                -             -  
Profit on disposal of other investments                      
Impairment of associates, other investments                 -              -                -          -          -                -       (2 180)   
and loans                                                   -              -           19 335     19 335          -          370 282             -   
Fair value adjustments                                (6 110)       (77 930)           16 552   (70 410)          -                -         (693)   
Net income from associates and joint ventures               -            795            1 280      1 090   (41 683)           16 586             -   
Straight-line lease income adjustments                  1 202              -                -   (81 319)          -                -             -   
Adjustment for net non-cash interest from Africa            -              -         (13 760)   (13 760)          -         (68 189)        17 163   
Net cash interest received from Africa                      -              -                -          -          -           40 825       (9 420)   
Depreciation and amortisation                               -              -           18 631     18 631          -                -             -   
Foreign currency translation effect                         -              -                -          -   (10 525)          (9 342)             -   
Dividends received from associates                          -              -                -      2 300     97 300                -             -   
Deferred taxation                                           -              -          (1 831)    (1 831)      8 288                -             -   
Distributable earnings                                 12 828       (16 213)        (417 243)    189 374     95 999           40 876       (9 872)

                                                                                                               Office and                            
                                                                                                    Dec 2017    mixed use      Retail   Industrial   
Restated unaudited distributable earnings                                                              R'000        R'000       R'000        R'000   
Profit/(loss) for the period                                                                         287 074      237 874     504 583       44 795   
Profit on disposal of investment property                                                            (9 912)      (9 912)           -            -   
Impairment of associates, other investments                                                                                                          
and loans                                                                                              6 435            -           -            -   
Fair value adjustments                                                                             (224 823)     (11 804)   (203 333)     (11 592)   
Net income from associates and joint ventures                                                       (38 020)            -       6 664        1 026   
Straight-line lease income adjustments                                                              (19 359)      (9 765)     (6 578)      (3 332)   
Depreciation and amortisation                                                                         19 674            -           -            -   
Foreign currency translation effect                                                                   33 014            -           -            -   
Dividends received from associates                                                                    84 498            -           -            -   
Deferred taxation                                                                                    150 149            -           -            -   
Distributable earnings                                                                               288 730      206 393     301 336       30 897   

                                                                     Waterfall                                                         Head office  
                                                           Hotel  developments  Head office SA   Total SA       MAS   Rest of Africa        Global  
Restated unaudited distributable earnings                  R'000         R'000           R'000      R'000     R'000            R'000         R'000  
Profit/(loss) for the period                              24 207        22 054       (555 351)    278 162   (7 737)           20 803       (4 154)  
Profit on disposal of investment property                      -             -               -    (9 912)         -                -             - 
Impairment of associates, other investments                              
and loans                                                      -             -          10 162     10 162         -            3 586       (7 313)  
Fair value adjustments                                  (12 504)      (24 846)          38 536  (225 543)         -                -           720  
Net income from associates and joint ventures                  -             -               -      7 690  (41 801)            7 551      (11 460)  
Straight-line lease income adjustments                       316             -               -   (19 359)         -                -             -  
Depreciation and amortisation                                  -             -          19 674     19 674         -                -             -  
Foreign currency translation effect                            -             -               -          -         -           33 014             -  
Dividends received from associates                             -             -          10 331     10 331    74 167                -             -  
Deferred taxation                                              -             -         100 611    100 611    49 538                -             -  
Distributable earnings                                    12 019       (2 792)       (376 037)    171 816    74 167           64 954      (22 207) 

Segmental analysis

Reconciliation of profit for the period/year to distributable earnings

                                                                                                                            Restated      Restated   
                                                                                                             Unaudited     unaudited     unaudited   
                                                                                                           31 December   31 December       30 June   
                                                                                                                  2018          2017          2018   
                                                                                                                 R'000         R'000         R'000   
Profit for the period/year                                                                                      31 332       287 074     2 654 326   
Profit on disposal of subsidiary                                                                                     -             -       (5 633)   
Loss on disposal of associate                                                                                    2 597             -             -   
(Loss)/profit on disposal of other investments                                                                 (2 180)             -         2 612   
Profit on disposal of investment property                                                                            -       (9 912)      (14 947)   
Impairment of associates, other investments and loans                                                          389 617         6 435        51 197   
Realisation of available-for-sale financial assets                                                                   -             -      (35 750)   
Fair value adjustments                                                                                        (71 103)     (224 823)     (420 886)   
Net income from associates and joint ventures                                                                 (24 007)      (38 020)      (29 146)   
Straight-line lease income adjustments                                                                        (81 319)      (19 359)      (88 467)   
Adjustment for net non-cash interest from associates                                                          (64 786)             -     (128 271)   
Net cash interest received from associates                                                                      31 405             -        42 425   
Depreciation and amortisation                                                                                   18 631        19 674        39 764   
Unrealised foreign currency translation effect                                                                (19 867)        33 014        50 698   
Dividends received from associates                                                                              99 600        84 498       166 723   
Write-off of other trade and receivable                                                                              -             -        47 972   
Movement in provision                                                                                                -             -         3 943   
Deferred taxation                                                                                                6 457       150 149   (1 769 383)   
Distributable earnings for the period/year                                                                     316 377       288 730       567 177   
Number of shares in issue*                                                                                 703 395 224   703 055 224   703 155 224   
Weighted average number of shares in issue*                                                                703 178 702   702 838 702   702 989 909   
Distributable earnings per share (cents)                                                                                                             
Basic                                                                                                             45.0          41.1          80.7   
Dividends (cents)                                                                                                                                    
Interim                                                                                                        284 875             -             -   
Final                                                                                                                -             -       520 334   
Dividend per share (cents)                                                                                                                           
Interim                                                                                                           40.5             -             -   
Final                                                                                                                -             -          74.0   

* Adjusted for 46 427 553 treasury shares                                                          

Independent non-executive directors
P Tredoux (Chairman)
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




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