APEXHI SCOREBOARD AT HALF TIME

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APEXHI SCOREBOARD AT HALF TIME 1 July 2006 31
December 2006
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PROFILE

• Listed property loan stock company since March
  2001
• The company offers investors a high yielding,
  professionally managed portfolio of commercial,
  retail and industrial properties
• Second largest South African listed property
  company on the JSE with a market capitalisation
  of approximately R10-billion
• Innovative unit structure of A, B and C units

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FIRST HALF HIGHLIGHTS

• Creation of the C unit to facilitate BEE at
  equity level
• Net conventional income before debenture interest
  of R350-million and distribution of R0,63 per A
  unit and R0,77 per B unit (combined R1,40)
• Profit on Matemeku loan of R15,2-million
• Acquisitions of R148-million
• Disposals of R113-million
• Capex of R138-million
• Property portfolio of 436 properties valued at
  R7,6-billion, debt of R1,67-billion with
  loan to value of 22
• Isivuno joint venture producing excellent results
• Leasing successes to reduce vacancies to 8

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REPLAY THE C UNIT

• Issued to existing unit holders, in October 2006,
  at no cost, on the basis of 55 per 100 B units
  held and 45 per 100 A units held.
• 30 of C units sold to BEE consortiums at R2 per
  unit
• Price at 31 December 2006 R4,40 (BEE value of
  R330-million)
• Effect
• BEE of 10 at equity level
• Change of distribution policy for A and B units
• Increase in unit holder value

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REPLAY DISTRIBUTION POLICY

• Annual distribution from R2,27 to R3,00
• A units receive 45 of the annual income
  distribution
• B units receive 55 of the annual income
  distribution
• C units receive nothing
• Annual distribution from R3,00 to R3,75 (or R0,75
  per quarter)
• A units receive the first R1,35
• B units receive the next R1,65
• C units receive the balance of the annual income
  distribution, to a max of R0,75
• Annual distribution above R3,75
• A units receive 36 of the annual income
  distribution
• B units receive 44 of the annual income
  distribution
• C units receive 20 of the annual income
  distribution

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INCOME STATEMENT FOR 6 MONTHS TO DEC 2006
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LIQUIDITY, UNIT PRICES AND TOTAL RETURNS

• 1 July 2006 31 December 2006

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PROGRESS TO END DEC 2006
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ACQUISITIONS, DISPOSALS AND CAPEX

• 10 properties acquired for R148-million
• 11,6 before gearing of R125-million
• revenue enhancing
• 18 properties sold for R113-million at a forward
  yield of 5
• proceeds used to repay debt at 11,5
• revenue enhancing
• R138-million spent on refurbishments
• revenue enhancing to various degrees

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PROPERTY REVALUATION AND NAV

• Valued by directors at 31 December 2006
• Upward valuation of R780-million
• Written up value increased by 11,5 to
  R7,6-billion
• (on 2,6-million m2 R2 900/m2!)
• Portfolio yield at new value yields 11,7
• NAV (excluding deferred tax) R24,05
• Market value of one A, B and C unit R37,09
• Premium 54

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PROPERTY PORTFOLIO
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LEASING PERFORMANCE 1 JUL 06 31 DEC 06
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RENEWALS SECTORAL BREAKDOWN
( average rental in the portfolio R36/m2)
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ISIVUNO A GREAT SUCCESS TO DATE

• Total portfolio
• R500 million (plus R281-million in new
  acquisitions)
• Dumisani Nene is entitled to 50 of the profit on
  sale
• Surplus earnings over base
• R170 000 (for the six months)
• Dumisani Nene is entitled to 50 of the net
  revenue on the portfolio in excess of a preset
  hurdle rate. (Projected to be in excess of
  R3-million for the year.)
• Leases negotiated with Government and parastatals
  in Pretoria for in excess of 74 000m2.

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COSTS

• As a percentage of conventional income 24
• Continue to show improvements in
• Recoveries of municipal charges
• Lift maintenance
• Air-conditioning and electrical maintenance
• Cleaning and security contracts

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ONE OFFS

• R15,2-million profit on the repayment of the
  R84-million loan to Matemeku

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HEAD OFFICE COSTS

• Increase in asset management fee arising from
  increased market capitalisation of ApexHi units

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GEARING

• Gearing of R1,67-billion loan to value of
  portfolio is 22
• R1,365-billion (82) at fixed rates averaging
  10,27 for 6 years
• R300-million linked to prime
• Negotiating to place R500-million into the
  Standard Bank conduit which should result in
  annual savings of R3-million

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BIRDIE SCENARIO ARE WE ON TRACK?
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ACHIEVING BIRDIE FOR THE YEAR

• Rents are expected to be at least 10 higher in
  the second six months as a result of
• Turnover commissions usually received in the last
  quarter
• Income on acquisitions substantial new
  purchases after December
• Escalation on the core portfolio and renewals.
• Costs expected to be 23 of conventional income
• Head office costs now budgeted at R66-million for
  the year based on the increasing value of the
  ApexHi units
• One offs Guarantee fee from Clearwater
• expect around R6-million

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SECOND HALF PORTFOLIO ACTIVITY

• Net acquisitions post 31 December 2006
• Acquired 8 properties for R536-million
• Disposed of 33 properties for R287-million
• Target additional acquisitions R500-million
• Target additional disposals R100-million
• Additional Capex R150-million
  

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PORTFOLIO AFTER POST BALANCE SHEET EVENTS
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REVISED BIRDIE SCENARIO
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IF DISTRIBUTIONS CONTINUE TO GROW
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QUESTIONS
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