Trading statement and pre-close guidance ACCELERATE PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) (Registration number: 2005/015057/06) Share code: APF ISIN: ZAE000185815 (“Accelerate” or the “Company”) TRADING STATEMENT AND PRE-CLOSE GUIDANCE 2019 continues to be one of the toughest periods faced by the property industry, with headwinds affecting performance. While political certainty has firmed up since the beginning of the year, sluggish economic conditions continue to weigh in on weaker property fundamentals and performance. The South African listed property sector index (SAPY) had its worst year on record in 2018, when it suffered a total loss, including share price movement and dividends of 25,26%. So far in 2019, SAPY’s recovery has been weak. Year to date, SAPY achieved a total return of 1,8%, while the JSE all share index’s total return has been about 4,4% (22 August 2019). This performance has been driven by weak economic conditions affecting tenants in all property sectors. In terms of paragraph 3.4(b)(vii) of the Listings Requirements of the JSE Limited, Accelerate has adopted distribution per share as its financial results measurement for trading statement purposes. Shareholders are advised that Accelerate anticipates negative distributable income growth for the year ended 31 March 2020, resulting in a 10% to 15% reduction in distribution per share (43,32 to 45.87 cents per share) compared to the 31 March 2019 full-year distribution of 50.97cents per share (27.26 cents per share at 30 September 2018 interims and 23.37 cents per share at 31 March 2019 year-end) . In the previous financial year the distribution was heavily weighted in favour of the interim period, consequently the current interim period distribution per share in comparison with the previous period is anticipated to be between 16% to 22% (21.26 to 22.90 cents per share) lower compared to 27.26 cents per share at 30 September 2018. In addition, taking into account the current economic environment faced by South African focused REITS, the board of directors of Accelerate deems it prudent to retain an additional percentage of Accelerate’s distributable income for reinvestment in the Company and its core assets in order to ensure long-term sustainability and profitability. The policy is to retain up to a further 5% of the distributions per share, depending on the circumstances. Over and above the continued weak economic and trading environment the following factors contribute to the revised guidance above: - Higher than expected rental reversions on renewal of leases as well as additional assistance provided to tenants necessitated by the current trading environment; - Additional spend on assets such as Cedar Square, the Buzz and Waterford centres in Fourways in order to improve asset quality and to attract exciting new tenants; - Cost of exiting an existing expiring cross-currency swap and entering into a new 3- year swap at favourable market rates; - Additional spend and marketing for the three-month launch of the recently completed Fourways Mall development to ensure the best possible experience for our shoppers; - Delays in the commencement of the Foreshore retail and office development; and - Higher than expected funding cost for the funding of the Fourways equalisation. The Company is taking corrective measures to ensure improved quality and long-term sustainability of the fund’s assets, it’s income stream, as well as controlling its operating costs. The financial information on which this announcement is based has not been reviewed or reported on by Accelerate’s external auditors. Accelerate’s pre-close presentation will be available on the Company’s website from commencement of business on 30 September 2019 at www.acceleratepf.co.za/investors. Johannesburg 30 September 2019 Sponsor The Standard Bank of South Africa Limited Date: 30/09/2019 08:45:00 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.