HIGHLIGHTS FOR THE PERIOD

Financial results
The distribution per linked unit for the 12-month period ended 31 August 2012 increased 52% relative to the comparable period ended 31 August 2011 and is a) consistent with the forecasted distribution per linked unit published by the company in the Circular dated 27 January 2012; b) 6,1% higher than the distribution per linked unit for the immediately preceding six-month period ended 29 February 2012.

Net property income
The increase in revenue was due in most part to a) the inclusion of revenue from the Vusani Portfolio; b) contractual rental escalations within the portfolio; and c) the full year inclusion of revenue applicable to properties acquired in the second half of the 2011 reporting period. Earnings from the Vusani Portfolio were in line with expectations, both at the time of the transaction and for the period to 31 August 2012.

The ratio of property expenses to revenue increased from 21,5% to 28,2%, largely due to accelerated repairs and maintenance allocations deployed into the portfolio to enhance the quality and sustainability of earnings, while other operating expenses increased from 5,2% to 6,7% of revenue due to additional statutory charges associated with asset management, shareholder communication and enhanced governance.

Fair value adjustments
Revaluation of the property portfolio at 31 August 2012 resulted in an upward revision of R28,5 million. This was mainly due to an increase in future contractual rental. Interest-bearing borrowings were fair valued upwards by R8,7 million using the yield curve, as applied to the applicable swaps, at 31 August 2012.

Finance costs
Finance costs increased by 328%. This was as a result of a debt funding facility secured by the company to facilitate, in part, the acquisition of the Vusani Portfolio.

Arrears
At 31 August 2012, arrears amounted to R3,7 million (August 2011: R5,0 million) with a provision of R2 million (August 2011: R1,4 million) having been raised for potential bad debts.

For the 12-month period ended 31 August 2012, the total bad debts expense amounted to R1,2 million (August 2011: Rnil).

Vacancy levels
The company's vacancy levels, as a percentage of gross lettable area (GLA) are:

                                      Retail %           Commercial %            Total %
29 February 2012             3,9                   0,4                             4,3
31 August 2012                2,0                   0,4                             2,4

Acquisitions, disposals and commitments
Vividend acquired the Vusani Portfolio in April 2012 for a total purchase consideration of R801 million, which added 126 000 m2 of GLA to the portfolio.

Prospects
Should a) existing economic conditions prevail; b) the portfolio perform in line with initial forecasted expectations, the distribution per linked unit for the year ended 31 August 2013 is expected to be in line with that forecasted by the company in the Circular dated 27 January 2012, being 52,38 cents per linked unit.