Resilient REIT : Pre-close update and notification of an intragroup acquisition of shares

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")

PRE-CLOSE UPDATE AND NOTIFICATION OF AN INTRAGROUP ACQUISITION OF SHARES

In anticipation of Resilient's results for the six months ended June 2022, 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

The portfolio continues to perform well with comparable sales growth of +9,7% for the five months ended May 2022.

RENEWALS AND NEW LEASES

Expiring leases with tenants that remained in occupation were renewed on average at +1,6% compared to the expiring rentals. Negative reversions were agreed on a number of expiring leisure-related tenants, including restaurants and entertainment centres. Leases concluded with new tenants were on average 7,7% higher than the rentals of the outgoing tenants. In total, rentals for renewals and new leases increased on average by 2,8%.

VACANCIES

Resilient's pro rata share of the vacancy in the portfolio is 2,0%. This includes space held vacant to accommodate the three new grocery stores.

SUSTAINABILITY

The solar installations at Irene Village Mall and Tubatse Crossing were commissioned on schedule and are performing in line with projections. Eight new installations as well as the additional installations at Mams Mall and Tzaneng Mall are under construction and are projected to be commissioned by year-end.

FRANCE

The construction works to accommodate Primark at Saint Sever and Lidl at Docks Vauban are progressing on schedule and within budget. Biltoki has taken occupation at Docks 76. Tenant interest for stores that were vacant when the portfolio was acquired is encouraging.

INTRAGROUP ACQUISITION OF SHARES

In terms of paragraph 3.95 of the JSE Listings Requirements, shareholders are advised that the Company acquired 9 000 000 Resilient shares from its wholly-owned subsidiary, Resilient Properties Proprietary Limited ("Propco"). The shares were acquired at a price of R53,60 per share on 30 June 2022. The shares will revert to authorised but unissued share capital of the Company on settlement of the transaction and an application to delist the 9 000 000 Resilient shares will be made in due course. Following this transaction, Propco holds 30 156 041 shares in the Company.

30 June 2022

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