STENPROP LIMITED - HALF YEARLY REPORT 2017 AND CHANGE IN PRESENTATION CURRENCY

Hamilton, Bermuda: 22 November 2017 – In a filing with the Bermuda Stock Exchange (“BSX”), Stenprop Limited (the “Company” or “Stenprop”; Ticker: STP.BH) released a Half Yearly Report 2017 and Change in Presentation Currency.

STENPROP LIMITED - HALF YEARLY REPORT 2017 AND CHANGE IN PRESENTATION CURRENCY

(Incorporated in Bermuda) 

Registration number: 47031     

BSX share code: STP.BH        

JSE share code: STP              

ISIN: BMG8465Y1093

Stenprop Limited ('Stenprop' or the 'Company' or together

with its subsidiaries the 'Group') is a property investment

company with a primary listing on the Johannesburg Stock

Exchange ('JSE') and a secondary listing on the Bermuda

Stock Exchange ('BSX').

Stenprop's strategy is to enhance shareholder value by

delivering sustainable growth in earnings and distributions

through identifying and investing in sectors and assets that

have positive growth fundamentals and where there is an

opportunity to add value and grow earnings through active

asset management.

HALF YEARLY REPORT 2017 AND CHANGE IN PRESENTATION CURRENCY

Highlights

GBP130.5m

Strategic MLI acquisitions

GBP1.35

diluted EPRA* NAV per share

4.87 pence

diluted adjusted EPRA earnings per share

4.0 pence

interim dividend per share declared

2.6%

increase in half-year dividend per share against prior year

Key highlights

key strategic decisions taken to:

 - invest significantly in multi-let industrial ('MLI') assets, with the objective of establishing Stenprop as a leading player in the

   MLI sector;

 - fund the Company's MLI investments primarily through selling assets with lower growth prospects;

 - actively pursue a listing on the London Stock Exchange and a conversion to a UK REIT; and

 - reduce debt from the current LTV* of 55% to no more than 45% by 31 March 2019 and no more than 40% by

   31 March 2020.

GBP135 million investment in MLI sector, including the GBP130.5 million strategic acquisition of the industrials.co.uk portfolio and

management platform. GBP4.5 million completed post-period end.

GBP71.0 million proceeds from asset sales (including GBP54.0** million of post-balance sheet sales) to fund the Company's

investment in the MLI sector and to reduce debt.

Successful integration of the C2 Capital management team and industrials.co.uk platform.

Financial highlights

Declaration of an interim dividend on 22 November 2017 of 4.0 pence per share for the six months ended

30 September 2017, in line with forecast and payable on 26 January 2018. The 2016 interim dividend was paid in Euros and

amounted to 4.5 cents per share, which at the then prevailing exchange rate would have equated to 3.9 pence per share.

Based on a projected full-year dividend of 8.0 pence per share, a dividend yield of 7.5% on the share price of GBP1.07^ at

20 November 2017, or 5.9% on the diluted EPRA NAV of GBP1.35 at 30 September 2017.

Diluted adjusted EPRA EPS* of 4.87 pence (2016: 4.35 pence) for the period ended 30 September 2017. Diluted IFRS EPS

was 3.08 pence (2016: 1.59 pence loss). Projected diluted adjusted EPRA EPS for the full year is 9.1 pence.

Diluted EPRA net asset value per share of GBP1.35 (2016: GBP1.34). Diluted IFRS net asset value per share of GBP1.30 (2016: GBP1.28).

Effective 1 April 2017, a change in reporting currency from Euros to Pounds Sterling. This change has been made to reflect

the relatively larger weighting of Stenprop's UK portfolio following Stenprop's entry into the UK multi-let industrial estate

asset class. It also accords with Stenprop's expected listing on the London Stock Exchange, as explained later in this commentary.

FX rates in period

Average foreign exchange rates in the period: GBP1.00:EUR1.138; GBP1.00:CHF1.259 (2016: GBP1.00:EUR1.223; GBP1.00:CHF1.336)

Period-end foreign exchange rates: GBP1.00:EUR1.134; GBP1.00:CHF1.298 (2016: GBP1.00:EUR1.157; GBP1.00:CHF1.257)

*  'EPRA' means European Public Real Estate Association. 'LTV' means loan to value ratio. 'EPS' means earnings per share.

**  Includes GBP42.2 million from the conditional exchange on the sale of the investment in Pilgrim Street.

^   JSE closing price on 20 November 2017 was ZAR20.00. ZAR:GBP rate at the same date was 18.637:1.

For the remainder of the full filing please visit:

www.bsx.com/CompanyDocuments/1099937873/Stenprop_RNS_211117.pdf

22 November 2017

JSE sponsor

JAVA CAPITAL

Bermuda Stock Exchange sponsor

Estera Securities (Bermuda) Limited