2005 INTERIM RESULTS for the six months ended 30 September 2005

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

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%)

Group income statement Unaudited six months ended 30 Sept 2005 R000 Property revenue Straight-line rental income accrual Gross property revenue Property expenses (95 599) Net profit from property operations Administrative expenses (5 595) Investment and other income Operating profit before finance costs Finance costs (73 981) Net profit before debenture interest

Group income statement contd Unaudited six months ended 30 Sept 2005 R000 Debenture interest (94 518) Net profit before fair value changes Fair value adjustment Net profit before taxation Taxation (28 149) Net profit Attributable to: Linked unitholders of the company Minority shareholders

Reconciliation Unaudited six months ended 30 Sept 2005 R000 Attributable profit after taxation Adjusted for: Change in fair value of investment properties ( ) Straight-line rental accrual net of deferred taxation Deferred taxation on change in fair value adjustment of investment properties Debenture interest net of minority interest Minority interest in revaluation surplus net of deferred taxation Headline earnings of linked units Adjusted for straight-line rental accrual net of deferred taxation (11 766) Earnings available for distribution Distribution for six months ended 30 Sept

Group balance sheet Unaudited at 30 Sept 2005 R000 ASSETS Non-current assets Current assets Total assets EQUITY AND LIABILITIES Equity and reserves Non-current liabilities Current liabilities Total equity and liabilities Sept 05Sept 04 NAV654 cents494 cents Premium to NAV5.5% Loan to value ratio39.7%41%

The property portfolio Vukile: 52 properties with GLA of m² MICC: 40 properties with GLA of m² (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%)

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

The Vukile portfolio Lease expiry profile - % of gross rentals

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

The Vukile portfolio Sept 04Mar 05Sept 05 Bloemfontein Plaza21.2%19.4%10.7% Randburg Square23.6%22.7%23.7% If Randburg excluded, overall vacancy drops to ± 1.8% Large vacancies (% of gross rentals)

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

The Vukile portfolio Geographical spread - % of GLA

The Vukile portfolio Total contract valueR124 million Total rentable area m² Includes CCMA in Durban Embassy (R16.1m) Bateman in Bedfordview GIS (R9.7m) Y Hotels in Bloemfontein Plaza (R9.1m) New leases and renewals

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

The MICC portfolio Lease expiry profile - % of gross rentals

The MICC portfolio Vacancy profile - % of gross rentals

The MICC portfolio 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% Large vacancies (% of gross rentals)

The MICC portfolio Sectoral spread - % of gross rentals

The MICC portfolio Geographical spread - % of GLA

Combined portfolio Number of properties 92 GLA m² Market valueR 3.32 billion Vacancy (% of gross rentals) 4.7% Sectoral spread Retail54% Commercial34% Industrial12%

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

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

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)

CMBS Overview contd

CMBS ± $120bn currently outstanding in Europe South Africas first CMBS was launched in November Vukile launched second on 31 October, Growthpoint third on 23 November

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

CMBS Structure

CMBS funding costs and benefits Notes issued by SPV are rated by rating agency (e.g. Moodys 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

Vukiles 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)

Liquidity Trading volumes continue to improve : 6 months to end March 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

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

Acquisition of MICC Vukile currently owns % of MICCs issued linked units Making good progress towards acquiring balance and delisting MICC Cautionary announcement made on 22 November 2005

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

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