Far Property : INTEGRATED ANNUAL REPORT 2022

FaR PROPERTY

INTEGRATED ANNUAL REPORT 2022

A PROPERTY PORTFOLIO

WITH VALUE, DIVERSITY,

RESILIENCE AND

GROWTH.

INTRODUCTION

ABOUT THIS REPORT

The FaR Property Company Limited ("FPC") is a property investment company with an internally managed, diversified portfolio of retail, commercial, industrial and residential properties in Botswana, South Africa and Zambia.

Listed on the Botswana Stock Exchange ("BSE"), FPC offers investors capital and income growth from a large, stable portfolio of investment properties, well positioned for future growth, and expansion across Africa.

Scope and boundary

This integrated annual report presents the performance and activities of FPC for the financial year 1 July 2021 to 30 June 2022, from a financial, economic and governance perspective. It aims to demonstrate how FPC will create and sustain value for stakeholders over the short, medium and long term. The report is primarily aimed at linked unitholders and providers of capital. The scope and boundary of the information contained in this integrated annual report encompass the Group's business activities and property portfolios in Botswana, South Africa and Zambia.

Reporting frameworks

This integrated annual report is prepared in accordance with IFRS, the BSE Listings Requirements, the Botswana Companies Act, and the International Integrated Reporting Framework. FPC complies in all material respects with the principles contained in the BSE Code of Best Practice on Corporate Governance as well as King IVTM*, as encapsulated in the applicable regulations.

Assurance

The company's external auditor, Grant Thornton, has independently audited the annual financial statements for the year ended 30 June 2022. They have provided assurance on the financial statements and expressed an unqualified audit opinion. The integrated annual report of the Group has been prepared under the supervision of Shinu Joy ACA, ACMA-(US), the acting chief

executive officer of FPC. The remaining content of the integrated annual report has been reviewed by the Board but has not been externally assured.

Business process	Nature of assurance	Assurance provider
Consolidated	External audit	Grant Thornton
annual financial
statements
Health, safety,	Compliance reviews	Board of Directors
environmental
and community
audits
BSE requirements	Compliance reviews	Management
Lender due	Legal and	Board of Directors
diligence	compliance reviews	and management
Insurance due	Independent risk	Board of Directors
diligence	reviews

Forward-looking statements

This integrated annual report contains forward-looking statements that, unless otherwise indicated, reflect the Group's expectations as at year-end. Actual results may differ materially from the Group's expectations. The Group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these. The Group disclaims any intention and assumes no obligation to revise any forward-looking statement even if new information becomes available, other than as required by the BSE Listings Requirements or any other applicable regulations.

Six capitals and materiality

Through the effective and balanced use of essential resources and stakeholder relationships, or "capitals," as described by the International Integrated Reporting Council's International Framework, we produce long-term sustainable value

iv

* Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

for stakeholders. We increase, decrease, or transform the six capitals through the execution of our business activities, as outlined in our business model on pages 14 to 15.

While this report is primarily aimed at our present and potential shareholders, it also takes into account the information demands of our vast and diverse range of stakeholders who are critical to the Group's long-term value development.

Our stakeholders

Investors and funders

Regulators, government and authorities

Employees

Media

Tenants

Suppliers

Communities

For further information, please see pages 24 to 25.

Board responsibility statement

The Board acknowledges its responsibility to ensure the integrity of this integrated annual report. The Directors can be contacted at the registered office of the company. Details of the Directors are contained on pages 34 and 35.

The Board believes that the integrated annual report was prepared in accordance with the framework. The report, which remains the ultimate responsibility of the Board, is prepared under the supervision of senior management and subject to external assurance.

The report is submitted to the Audit, Risk and Compliance Committee, which reviews and recommends it to the Board for approval having reviewed the contents, as well as the collation process, and with reliance on the assurance provided on the various reporting elements. The committee has applied its mind to the report and believes that it appropriately and sufficiently addresses FPC's performance for the year within the scope and boundary outlined above. The Audit, Risk and Compliance Committee recommended this integrated annual report to the Board for approval which then approved it.

Reetsang Mokgatlhe

Chairman

9 September 2022

CONTENTS

Introduction

About this report	IFC
FY22 highlights	2
FPC at a glance	4
Reflections from our chairman	6

Our business

Overview of our business	10
Our business model	14
Strategic overview	16
Our business in context	18

Our performance

Management report	22
Stakeholder engagement	24
Sustainability review	26
Top properties	27

Accountability

Directorate	34
Ethical leadership	36
Risks and opportunities	37
Corporate governance report	42
Governance and Nomination	48
Committee report
Audit, Risk and Compliance	51
Committee report
King IV compliance checklist	54

Annual financial statements

Directors' responsibilities and approval	64
Declaration by the company secretary	65
Directors' report	66
Independent auditor's report	67
Consolidated and separate annual	71
financial statements

Corporate information

Analysis of linked unitholders	132
Notice of annual general meeting	134
Form of proxy	135
Shareholders' diary	137
Definitions	138
Company information	140

THE FAR PROPERTY COMPANY LIMITED INTEGRATED ANNUAL REPORT 2022

1

INTRODUCTION

FY22

HIGHLIGHTS

Revenue

2%

Profit before income tax

16%

Rental yields at a stable rate

10%

Low vacancies

10%

Loan-to-asset ratio

21%

2

About this report

IFC

FY22 highlights 2

FPC at a glance 4

Reflections from our chairman

6

THE FAR PROPERTY COMPANY LIMITED INTEGRATED ANNUAL REPORT 2022

3