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ATTACQ LIMITED - Further update on the COVID-19 impact on business

Release Date: 15/05/2020 16:50
Code(s): ATT     PDF:  
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Further update on the COVID-19 impact on business

(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 “the company”)


Subsequent to the SENS announcements published on 1 April 2020 and 15 April 2020, Attacq wishes to provide a further
update on the COVID-19 impact on business.

Interest-bearing debt

The group’s debt facilities are spread between five South African banks and four South African institutions with no exposure
to the bond markets. For the period ending 31 December 2020, total debt facilities of R1.2 billion or 10.2% of the total
group interest-bearing debt is due for maturity on 7 December 2020.

As at 31 December 2019, Attacq, via a wholly-owned subsidiary, had EUR86.3 million of debt in place with The Standard
Bank of South Africa Limited. This debt is secured by shares held in MAS Real Estate Inc. (“MAS”) and a portfolio of
properties located at Waterfall. Subsequent to year end, EUR12.5 million of the debt was settled. Given the impact of
COVID-19 on equity markets worldwide and the decline in MAS shares since the onset of the pandemic, Attacq has
restructured the quantum of the euro debt attributable to its MAS shares such that a rand-equivalent of approximately
R514.9 million is secured via Attacq’s interest in MAS and a share cover of 1.75 times must be maintained on these shares
for the period to 30 June 2020. Subsequent to 30 June 2020, the required share cover will revert back to 2.00 times. At the
prevailing MAS share price and rand/euro exchange rate, the share cover ratio is approximately 3.08 times.

South African portfolio

Rentals are invoiced monthly in advance and are typically due on the first day of the month. A total rental collection rate
of 63.8% and 62.2%, based on rental invoiced prior to taking into account the impact of the rental discounts and deferrals,
was achieved by the close of business on 14 May 2020 for the months of April and May 2020 respectively.

The property and asset management teams continue to proactively engage with individual tenants across the entire portfolio
(retail, offices, industrial and hotels) assessing the requests for assistance on a case-by-case basis to ensure, as far as
possible, our tenants can trade and remain in business.

On 29 April 2020, Edcon Limited (“Edcon”) announced its commencement of voluntary business rescue proceedings.
Edcon, excluding the stationery business CNA which has since been sold, currently occupies 19 750m2 of primary gross
lettable area (“PGLA”) which equated to 2.7% of Attacq’s total PGLA and 2.3% of Attacq’s rental income for the six
months period ended 31 December 2019. Rental income from Edcon has been accounted for in full as gross revenue,
however, only 59.1% of this rental income has been included in distributable earnings. The balance of 40.9% has been used
to subscribe for equity in Edcon. Attacq placed no value on its equity interest in Edcon at 31 December 2019.

Given the fluidity of the situation, it is not currently possible to quantify the impact that COVID-19 will have on Attacq’s
distributable earnings. Attacq continues to focus on the strength of its quality asset portfolio, its capital allocation priorities
and the preservation of its liquidity position, in addition to the health and safety of its employees and communities.

The information contained in this announcement has not been reviewed or reported on by Attacq’s external auditors.

15 May 2020

Java Capital

Date: 15-05-2020 04:50:00
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