RESILIENT REIT LIMITED
Incorporated in the Republic of South Africa
Registration number: 2002/016851/06
JSE share code: RES
ISIN: ZAE000209557
Bond company code: BIRPIF
LEI: 378900F37FF47D486C58
(Approved as a REIT by the JSE)
(“Resilient” or “the Company” or “the Group”)


PRE-CLOSE UPDATE


In anticipation of Resilient’s results for the six months ending June 2023, the following pre-close update is provided. The
financial information on which this update is based has not been reviewed or reported on by the Company’s external
auditors.

SOUTH AFRICA
TRADING PERFORMANCE
Resilient went to extra lengths to facilitate trading during periods of loadshedding. To support its tenants and mitigate the
effects of loadshedding, Resilient has, in partnership with its tenants, installed 163 in-store battery systems to date. A
number of tenants have also been connected to back-up generators.

The impact of loadshedding on trading has been limited by Resilient’s emphasis on being accessible and open for business
through loadshedding wherever possible. Comparable sales growth of 2,9% was achieved for the four months ended April
2023. Foot traffic for the corresponding period grew by 5,8%.

The new Checkers store at The Grove Mall opened on schedule at the end of March 2023 and is trading well.

VACANCIES
Resilient’s pro rata share of the vacancy in the portfolio is currently 1,9%. Vacancies increased from 1,7% as at
December 2022 due to the implementation of tenant initiatives at Tzaneng Mall and Jabulani Mall that are expected to be
completed by mid-2024.

ENERGY
Resilient has, for a number of years, been a leader in solar and battery installations. The local authorities have been slow
in implementing the amended regulations relating to solar installations announced by the President. Approval has,
however, recently been received from the Mbombela Local Authority to expand the solar installation at I’langa Mall from
1,37MWp to 4,37MWp. Approval has also been received from NERSA to expand the solar installations at Galleria Mall
and Arbour Crossing from 1,45MWp to 5,98MWp and 1,43MWp to 2,98MWp, respectively. Tshwane Municipality
continues to delay approvals affecting the planned additional installations at Mams Mall, The Grove Mall and Soshanguve
Crossing. Approval from the Madibeng Municipality for the increase of the installation at Brits Mall from 1,44MWp to
3,94MWp is anticipated within the next month.

In the current period, the 6,81MWp installation at Boardwalk Inkwazi and the 1,1MWp installation at Tzaneen Crossing
were completed. In addition, the installed capacity at Mall of the North and The Crossing Mokopane was expanded from
1,33MWp to 5,23MWp and 1,17MWp to 2,03MWp, respectively.

Resilient has trialled different batteries for a period in excess of a year to determine the most effective system for the
Group’s requirements. The Board has approved the expansion of the battery system installed at The Grove Mall from
1,35MWh to 6,0MWh. The expansion of the Irene Village Mall battery system from 0,75MWh to 4,0MWh is currently
under evaluation.

The roll-out of solar installations and batteries will alleviate the negative impact of diesel costs on earnings. Resilient’s
pro rata share of the unrecoverable cost of diesel for the four months to April 2023 was approximately R5,4 million.

FUNDING AND INTEREST RATES
Resilient continues to be well supported by both the capital markets and the banks. Since the release of the December 2022
results, a new R750 million five-year facility has been accepted from Nedbank at a cost of 3-month JIBAR plus 1,60%.
Although Resilient's interest rate risk is well-hedged, as interest rate derivatives expire, the sharp rise in interest rates will
impact earnings in the future. The average hedge term is 3,2 years and the following interest rate derivatives are in place:

                        Interest rate swaps            Interest rate caps
                                       Average                     Average
                       Amount        swap rate        Amount       cap rate
 Expiry                   R'000             %            R'000            %
 Aug 2023               500 000           7,78               -
 Sep 2023                      -                       300 000          7,91
 Dec 2023                      -                       200 000          7,43
 Dec 2024             1 100 000           4,81         400 000          8,37
 Dec 2025             1 500 000           6,10               -
 Dec 2026             1 600 000           6,65         400 000          7,91
 Dec 2027             1 500 000           7,44       1 000 000          8,03
 Dec 2028             2 500 000           7,01         500 000          7,15
                      8 700 000           6,63       2 800 000          7,85

FRANCE
The 6 709m2 Primark store at Saint Sever has been handed over to the tenant and is currently undergoing fit-out. The store
is scheduled to open in November 2023. The addition of Primark has attracted strong demand from international clothing
retailers supporting the strategy of regional dominance. The customer parking is being upgraded to improve reticulation
and convenience.

The process of right-sizing older brands and introducing new retail concepts continues at Docks Vauban reinforcing the
centre as the dominant retail offering in the region. Similar strategies are being implemented at Docks 76 and Rivetoile.
Construction at Rivetoile to improve the ground floor reticulation is awaiting council approval and is anticipated to
commence in September 2023.

LISTED INVESTMENTS
Resilient invested R746 million in Hammerson. Hammerson has made a number of positive announcements including the
sale of its share of Italie Deux and the Italik extension in France and its share in the Croydon partnership in the UK. In
addition, undertakings to substantially reduce operating costs have been made. These announcements have been positively
received and Resilient’s 200 268 486 shares are currently valued at R1,2 billion.

OUTLOOK
The Board anticipates that the distribution per share for 1H2023 will be in line with that of 2H2022. This forecast is based
on the guidance previously provided by Lighthouse and an assumption regarding dividends to be received from
Hammerson.

This forecast statement and the forecast underlying such statement are the responsibility of the Board and have not been
reviewed or reported on by the Company’s auditor.

13 June 2023


 Sponsor                                                                 Debt Sponsor

 Java Capital



                                                                         Rand Merchant Bank
                                                                         (a division of First Rand Bank Limited)