Response to Covid-19 and Withdrawal of Dividend Guidance TRANSCEND RESIDENTIAL PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) Registration number 2016/277183/06 JSE Code: TPF ISIN: ZAE000227765 (Approved as a REIT by the JSE) (“Transcend” or “the Company”) RESPONSE TO COVID-19 AND WITHDRAWAL OF DIVIDEND GUIDANCE Response to COVID-19 The COVID-19 pandemic has given rise to unprecedented circumstances globally, as well as in South African financial markets. The Board of Directors of Transcend (“the Board”) supports President Ramaphosa’s initiatives which have been implemented in a nationwide effort to “flatten the curve” in respect of COVID-19 infections in South Africa. Actions taken by the Company The safety and well-being of Transcend’s people, tenants, communities and broader group of stakeholders remain the Company’s priority while it works hard to contain and mitigate the potential effects of the pandemic. Transcend is closely monitoring the recommendations issued by the World Health Organisation, the South African Government and relevant authorities and will continue to apply these initiatives across all properties and operations. Management continues to take the necessary steps to ensure that a sound financial and liquidity position is maintained during this period of uncertainty. This is supported by high occupancies and strong positive cashflows generated by Transcend’s portfolio, although management and the Board are aware that the impact of the “lockdown” and a slowdown in economic activity may affect these conditions in the short-term. The Company also has no commercial bank debt obligations maturing during the next 12-month period. Operational update Transcend’s portfolio extends across 4 722 individual units that are let on month-to-month leases with tenants. The Company and its property management teams have been working constantly through this challenging time to maintain, secure and operate its properties and business effectively. The Company’s portfolio achieved an occupancy of 95.7% at 31 March 2020 and an average collection on rental income of 97% for the first quarter ending 31 March 2020. The following considerations are pertinent: - Residential property is a more defensive and resilient asset class than others due to a broad and diversified tenant base; however, the current set of circumstances bring significant uncertainty and unchartered territory to all financial markets, the property sector and the Company. - The Company currently continues to generate strong cashflows at a property level, as monthly and quarterly rental collections continue uninterrupted to date. - The Company has implemented an income declaration process for tenants whose income has been affected by this pandemic. - The Company continues to be in constant communication with tenants and key service providers to keep abreast of and review their circumstances as they respond to the pandemic. Operational staff are providing ongoing feedback to management, and consequently, to the Board. Management will adjust the Company’s approach when and if deemed necessary. Withdrawal of dividend guidance In light of current market uncertainties, the Board is of the view that it is no longer appropriate for its distribution guidance, as previously communicated to shareholders, to remain in place. The Board will provide further guidance once there is greater certainty on the impact of COVID-19 on the business of Transcend. Bryanston 6 April 2020 Sponsor Questco Corporate Advisory Proprietary Limited Date: 06-04-2020 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.