2005 INTERIM RESULTS for the six months ended 30 September 2005

1. 2005 INTERIM RESULTS for the six months ended 30 September 2005

2. Highlights • Distribution up 8.3% on strong property performance • Overall portfolio vacancy rate reduced to 3.8% of gross rentals • R80m expansion and upgrading project launched • Securitisation will impact positively on full-year and future results

3. Salient features of results • Net profit before tax, debenture interest and fair value adjustment of R115m (2004: R75m) - includes R33.9m from MICC • Net asset value per linked unit up to 654c from 494c at September 04 (+32.6%) • Distribution up to 32.5c from 30c (+8.3%)

4. Group income statement

5. Group income statement contd

6. Reconciliation

7. Group balance sheet

8. The property portfolio • Vukile: 52 properties with GLA of 676 961m² • MICC: 40 properties with GLA of 395 322m² (MICC to sell Sandton Sanlam Park for R60.25m cash, subject to conditions precedent) • Vukile portfolio valued at R2.27 billion (up 6.4%) • MICC valued at R1.051 billion (up 4.9%)

9. The Vukile portfolio National tenant groups - % of GLA and gross rentals

10. The Vukile portfolio Lease expiry profile - % of gross rentals

11. The Vukile portfolio Vacancy profile - % of gross rentals Figures in brackets as at 31 March 2005 (Commercial space in Randburg re-classified)

12. The Vukile portfolio Large vacancies (% of gross rentals) If Randburg excluded, overall vacancy drops to ± 1.8%

13. The Vukile portfolio Sectoral spread - % of gross rentals Figures in brackets prior to commercial space in Randburg re-classified

14. The Vukile portfolio Geographical spread - % of GLA

15. The Vukile portfolio New leases and renewals • Total contract value R124 million • Total rentable area 71 060 m² • Includes • CCMA in Durban Embassy (R16.1m) • Bateman in Bedfordview GIS (R9.7m) • Y Hotels in Bloemfontein Plaza (R9.1m)

16. The MICC portfolio National tenant groups - % of GLA and gross rentals

17. The MICC portfolio Lease expiry profile - % of gross rentals

18. The MICC portfolio Vacancy profile - % of gross rentals

19. The MICC portfolio Large vacancies (% of gross rentals) • Fredman Drive sold – commercial vacancy reduces to 11.8% (4.6% total) • With Fredman Drive out – Hillview, Randburg contributes 35% of commercial vacancy (0.8% total) • i.e. if Fredman and Hillview out, overall vacancy drops to 3.8%

20. The MICC portfolio Sectoral spread - % of gross rentals

21. The MICC portfolio Geographical spread - % of GLA

22. Combined portfolio • Number of properties 92 • GLA 1 072 283m² • Market value R 3.32 billion • Vacancy (% of gross rentals) 4.7% • Sectoral spread • Retail 54% • Commercial 34% • Industrial 12%

23. Strategic objectives (annual report) • Enhancement of existing properties • Debt funding structure • Improvement of liquidity of linked units

24. Capex project • Board has approved R80m to upgrade and expand Phoenix Plaza and Dobsonville • Phoenix Plaza GLA to be increased by 3 500m² and Dobsonville by 5 000m² • Initial yield of ± 11% expected • Work to start in January and finish August 2006

25. CMBS Overview • Commercial Mortgage Backed Securitisation (CMBS) used worldwide since late 1980s as alternative to bank loans for commercial property owners • Part of growing move towards disintermediation (i.e. reduced reliance on traditional bank finance)

26. CMBS Overview contd

27. CMBS Overview contd • CMBS ± $120bn currently outstanding in Europe • South Africa’s first CMBS was launched in November 2004. Vukile launched second on 31 October, Growthpoint third on 23 November

28. CMBS Structure • CMBS is a substitute for bank debt through the use of a special purpose vehicle (SPV) • The SPV makes a loan to the borrower and funds this loan by issuing highly rated securitisation notes to capital markets investors • The properties are generally (not always) held in an insolvency-remote subsidiary SPV of the transaction sponsor

29. CMBS Structure

30. CMBS funding costs and benefits • Notes issued by SPV are rated by rating agency (e.g. Moody’s or Fitch) • Due to high credit rating of the notes, capital market investors prepared to purchase with low margin • This low margin translates to lower cost of funds for SPV, which benefit is passed back to borrower as lower margin on loan • In addition to lower funding costs, CMBS offers number of benefits to property owners, including: • Diversified funding base • Decreased pressure on traditional credit lines • Validation of asset and property management functions by the rating agency

31. Vukile’s securitisation programme • R2 billion CMBS programme arranged by ABSA launched on 31 October 2005 • First issuance of 5 and 7 year floating rate notes totalling R770 million • Floating rate notes converted into fixed-rate exposure through interest rate swaps • Overall debt cost, after all expenses and costs, will reduce from 11.16% to 10% NACM • If in place for year ended 31 March 2005, earnings would have been ± 5% higher than reported • Future benefits if structure is utilised (set-up costs not repeated)

32. Liquidity • Trading volumes continue to improve : • 6 months to end March 2005 - R137 million • 6 months to end September 2005 – R174 million (± 27%) • Average monthly trade • 6 months to end March 2005 – R22.8 million • 6 months to end September 2005 – R29.0 million

33. BEE initiatives • Discussions underway which may lead to substantial portion of Sanlam shareholding (58%) sold to BEE consortium

34. Acquisition of MICC • Vukile currently owns 75.003% of MICC’s issued linked units • Making good progress towards acquiring balance and delisting MICC • Cautionary announcement made on 22 November 2005

35. Prospects • Continued strong performance expected from property portfolio • Prospects for further reduction in vacancies • Benefits of securitisation will start flowing through in 2nd half and following years • Full-year distribution growth could be similar to interims

36. Questions ? END