Trading Statement and Revised Distribution Guidance SAFARI INVESTMENTS RSA LIMITED Approved as a REIT by the JSE Limited (Incorporated in the Republic of South Africa) (Registration number 2000/015002/06) Share code: SAR ISIN: ZAE000188280 (“Safari” or “the Company”) TRADING STATEMENT AND REVISED DISTRIBUTION GUIDANCE TRADING STATEMENT FOR THE YEAR ENDED 31 MARCH 2019 (“FY 2019”) In terms of the JSE Limited Listings Requirements, a listed property entity may adopt “distribution per share” and “net asset value per share” as the applicable criteria for trading statement purposes and is then required to publish a trading statement as soon as it becomes reasonably certain that the distribution per share for the next period to be reported on will differ by 15% or more from the distribution per share from the previous corresponding period. The Company hereby advises that a reasonable degree of certainty exists that for the financial year ended 31 March 2019 (“FY2019” or “the current period”), the distribution per share will be between 48 cents and 52 cents, representing a decrease of between 24% and 29% compared to the distribution per share of 68 cents reported for the financial year ended 31 March 2018 (“FY2018” or the “previous corresponding period”). The decrease in distribution per share is attributed to : • For FY2018, distributable earnings included antecedent dividends (resulting from the 119 552 633 shares issued at R7.60 during FY 2018) and distribution per share was calculated using the weighted average number of shares in issue. In the current period there is no adjustment for antecedent dividends and distribution per share is calculated using the number of shares in issue at 31 March 2019. • The continued weaker than expected performance of the Platz Am Meer shopping centre in the current period and the delay, due to finalisation of regulatory processes, in the sale of the residential units at the Platz Am Meer development in Swakopmund. • The challenging local retail environment putting current period rental renewals and escalations under pressure. As previously disclosed, Southern Palace defaulted on the R50 million equity loan from Sanlam during the current period which resulted in a cross-default on the R455 million senior loan. Guarantee fees and additional interest expense resulting from funding the interest shortfall from December 2018 amounting to R2.69 million paid on behalf of Southern Palace are deemed to not be recoverable and have been expensed in FY2019. It should be noted that there is a reversionary pledge and cession agreement together with a Southern Palace Holdco guarantee in place which will result in Safari holding a pledge over the 53 million Safari shares of Southern Palace for as long as Safari has a claim against Southern Palace for any amounts or expenses paid on account of the guarantee provided by Safari. The financial information on which this trading statement is based has not been reviewed or reported on by the auditor of the Company. The audited results for FY2019 are expected to be published on or about 24 June 2019. REVISED DISTRIBUTION GUIDANCE FOR THE FINANCIAL YEAR ENDING 31 MARCH 2020 (“FY 2020”) The board of Safari issues revised guidance for FY2020. The core business of Safari is expected to perform well despite continued pressure on the retail sector and suppressed rental renewals and escalations. Excluding the impact of the Southern Palace transaction, distribution per share for FY2020 would be expected to increase by between 4% and 6% over FY2019. However, in accordance with Safari’s commitment to delivering sustainable and quality growth in earnings and distributions, Safari has resolved to treat interest on payments and expenses resulting from the guarantee provided on the Southern Palace transaction as non- distributable due to recoverability concerns. Accordingly, distribution per share for FY2020 is expected to be between 6% and 8% lower than FY2019. As and when amounts are recovered from Southern Palace in future, these amounts will have a positive impact on distributable earnings. This guidance has not been reported on by Safari’s auditor and is based on the following assumptions: • The macro-economic environment will not further deteriorate; • No major tenant failures will occur; • Vacancy rates will remain unchanged; and • The regulatory process relating to the residential units at the Platz Am Meer development in Swakopmund will be completed, with sales commencing in FY2020 (the proceeds of which will not be distributed and will be used to reduce interest- bearing borrowings). The information contained above is provided for illustrative purposes and in good faith based on reliable information provided to management. No representation, warranty, undertaking or guarantee of whatsoever nature is made or given regarding the accuracy and/or completeness of such information. The forecast for the FY2020 is the sole responsibility of the directors and has not been reviewed and reported on by the auditor of the Company. Pretoria 18 June 2019 Sponsor PSG Capital Date: 18/06/2019 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.