| Tue 5 Jun 2007, 8:55 | | OAS - Oasis - Final abridged audited results and i |
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OAS
OAS
OAS - Oasis - Final abridged audited results and income distribution declaration
Oasis Crescent Property Fund
(Incorporated in the Republic of South Africa)
(Registration number 2003/012266/06)
Share code: OAS
ISIN: ZAE000074332
("Oasis")
Final abridged audited results and income distribution declaration
The directors of Oasis Crescent Property Fund Managers Limited ("OCPFM"), the
management company of the Oasis Crescent Property Fund ("the Fund"), present the
abridged audited results of the Fund for the year from 1 April 2006 to 31
March 2007 as follows:
ABRIDGED INCOME STATEMENT
for the year ended 31 March 2007
12 months 4 months
2007 2006
R R
Revenue 32,341,611 6,836,905
Expenses 10,302,346 1,644,706
22,039,265 5,192,199
Fair value adjustment to investment properties
excluding straight lining of lease income 10,307,058 18,093,214
Operating profit for the year 32,346,323 23,285,413
Interest received 2,556,851 1,850,850
Interest paid (15,323) (157)
Profit for the year 34,887,851 25,136,106
Headline earnings and distribution income
reconciliation
Net profit for the year 34,887,851 25,136,106
Adjusted for:
Fair value adjustment to investment
properties (12,448,435) (18,990,208)
Headline earnings 22,439,416 6,145,898
Non-permissible rental income (731,243) (244,992)
Non-permissible interest income (2,556,851) (1,850,850)
Distribution excluding non-permissible income 19,151,322 4,050,056
Units in issue 22,231,250 20,000,000
Basic earnings per unit (cents) 156.9 125.7
Headline earnings per unit (cents) 100.9 30.7
Distribution per unit excluding
non-permissible income 86.1 20.3
(cents)
Net asset value per unit (cents) 1,154 1,087
ABRIDGED BALANCE SHEET
as at 31 March 2007
2007 2006
R R
ASSETS
Non-current assets 264,190,000 134,300,000
Investment properties 261,151,629 133,403,006
Straight line lease accrual 3,038,371 896,994
Current assets 17,067,608 89,582,973
Trade and other receivables 2,819,947 428,874
Cash and cash equivalents 14,247,661 89,154,099
Total assets 281,257,608 223,882,973
UNIT HOLDERS FUNDS AND LIABILITIES
Unit holders funds 265,149,025 217,447,240
Current liabilities 16,108,583 6,435,733
Trade and other payables 4,138,201 289,835
Unit holders for distribution 10,898,385 4,050,056
Non-permissible income available for
distribution 1,071,997 2,095,842
Total unit holders funds and liabilities 281,257,608 223,882,973
ABRIDGED STATEMENT OF CHANGES IN UNIT HOLDERS FUNDS
for the year ended 31 March 2007
Capital Revaluation
of the Fund reserve
R R
Balance at 23 November 2005 - -
Issue of units 200,000,000 -
Listing costs (1,542,968) -
Transfer to revaluation reserve - 18,990,208
Net profit for the period ended 31 March
- -
2006
Distribution to unit holders - -
Distribution of non-permissible income - -
Balance at 01 April 2006 198,457,032 18,990,208
Issue of units 35,253,350 -
Transfer to revaluation reserve - 12,448,435
Net profit for the year ended 31 March
2007 - -
Distribution to unit holders - -
Distribution of non-permissible income - -
Balance at 31 March 2007 233,710,382 31,438,643
Retained Total
income
R R
Balance at 23 November 2005 - -
Issue of units - 200,000,000
Listing costs - (1,542,968)
Transfer to revaluation reserve (18,990,208) -
Net profit for the period ended 31 March
25,136,106 25,136,106
2006
Distribution to unit holders (4,050,056) (4,050,056)
Distribution of non-permissible income (2,095,842) (2,095,842)
Balance at 01 April 2006 - 217,447,240
Issue of units - 35,253,350
Transfer to revaluation reserve (12,448,435) -
Net profit for the year ended 31 March
2007 34,887,851 34,887,851
Distribution to unit holders (19,151,322) (19,151,322)
Distribution of non-permissible income (3,288,094) (3,288,094)
Balance at 31 March 2007 - 265,149,025
ABRIDGED CASH FLOW STATEMENT
for the year ended 31 March 2007
12 months 4 months
2007 2006
R R
Cash generated from operations 21,355,181 4,156,166
Interest paid (15,323) (157)
Interest received 2,556,851 1,850,850
CASH FLOWS FROM OPERATING ACTIVITIES 23,896,709 6,006,859
CASH FLOWS FROM INVESTING ACTIVITIES (117,441,565) (115,309,792)
CASH FLOWS FROM FINANCING ACTIVITIES 18,638,418 198,457,032
NET INCREASE IN CASH AND
CASH EQUIVALENTS (74,906,438) 89,154,099
CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE YEAR 89,154,099 -
CASH AND CASH EQUIVALENTS AT THE END OF THE
YEAR 14,247,661 89,154,099
COMMENTARY
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The financial statements of the Fund have been prepared in accordance with
International Financial Reporting Standards (IFRS), International Accounting
Standard 34 (IAS 34) and the requirements of the Collective Investment Schemes
Control Act of 2002.
The financial statements are prepared on the historical cost basis as modified
by the revaluation of investment properties which are carried at fair value.
There have been no changes to the accounting policies since the previous
reported financial period.
PricewaterhouseCoopers Inc has audited the financial information set out in
this report. Their unqualified audit report is available for inspection at the
Fund`s registered office.
2. PORTFOLIO COMMENTARY
As at 31 March 2007, the Fund comprised of seven properties with a value of
R264.2 million. By gross rental, 52% of the property portfolio is retail,
19% is offices and 29% is industrial.
The significant increase in the retail exposure is due to the acquisition of
The Ridge@Shallcross, a community shopping centre in Durban for R117 million
effective from 1 July 2006. In terms of Shari`ah principles the non- permissible
component of the property was sold to eliminate the exposure to non-permissible
business activities. This comprised approximately 12% of rentable area and R15
million of the initial purchase price. 27 Nourse Avenue, an industrial facility
in Epping, Cape Town was acquired for R10.3 million effective 15 November 2006.
3. PORTFOLIO VALUATION
The investment properties were independently valued by Mills Fitchet Magnus
Penny (Pty) Ltd on 31 March 2007 and the portfolio was valued at R264.2 million.
4. CAPITAL COMMITMENTS
As at 31 March 2007, R4.2 million is committed to be utilised for redevelopment
at 27 Nourse Avenue, Epping Industria, funded from existing cash resources.
5. OUTLOOK
Strong demand, combined with supply constraints, increasing replacement and
land cost provides a positive outlook for rental growth. Going forward, the
outlook for the fund is to deliver distribution growth in line with the growth
in rentals.
6. TRADING STATEMENT CRITERIA
In terms of section 3, paragraph 3.4 (b) (viii) of the Listings Requirements of
the JSE Limited, the fund advises unit holders that it has adopted distribution
per unit as the financial results measurement for trading statement purposes
with immediate effect.
7. SEGMENTAL INFORMATION
Retail Office Industrial
R R R
Income statement
Rental and related income 15,765,738 5,586,490 8,848,006
Straight lining of lease income 359,611 670,094 1,111,672
Property expenses 5,204,962 1,666,792 1,213,014
Segment result
Operating profit 14,447,242 7,168,793 12,947,867
Balance sheet
Investment properties at
valuation 133,704,122 39,918,337 87,529,170
Straight line lease accrual 489,021 963,520 1,585,830
Corporate Total
R R
Income statement
Rental and related income - 30,200,234
Straight lining of lease income - 2,141,377
Property expenses - 8,084,768
Segment result
Operating profit (2,217,580) 32,346,323
Balance sheet
Investment properties at valuation - 261,151,629
Straight line lease accrual - 3,038,371
8. RELATED PARTY TRANSACTIONS AND BALANCES
Identity of the related parties with whom material transactions have occurred
Oasis Crescent Property Fund Managers Ltd ("OCPFM") is the management company of
the Fund in terms of the Collective Investment Schemes Control Act.
Eden Court Property Fund (Pty) Ltd ("ECPF") is the vehicle that accumulates the
portion of a property that is not Shari`ah compliant. Rentals are collected by
ECPF and expenses are paid by the Fund and recovered from ECPF.
Oasis Group Holdings (Pty) Ltd ("OGH") is a tenant at The Ridge@Shallcross.
Oasis Crescent Property Fund (Pty) Ltd ("OCPF") is the vehicle that accumulated
the properties prior to the listing of the Fund. The properties were sold to the
Fund on listing at the initial purchase prices.
There are common directors to OCPFM, ECPF, OGH, and OCPF. Transactions with
related parties are executed on terms no less favourable than those arranged
with third parties.
Type of related party transactions
The Fund pays a service charge and a property managment fee on a monthly basis
to OCPFM.
12 months 4 months
2007 2006
Related party transactions R R
Service charge paid to OCPFM 1,355,829 420,467
Property management fees paid to OCPFM 529,499 73,333
Expense recoveries from ECPF 553,521 -
Rental, related income and deposit from
OGH at the Ridge@Shallcross 146,092 -
2,584,941 493,800
Related party balances
Trade receivables from ECPF 56,036 -
Trade receivables from OGH 6,539 -
Trade and other receivables from OCPF - 67,200
Trade and other payables to OCPFM 191,147 129,147
9. INCOME DISTRIBUTION
Notice is hereby given that a distribution after non-permissible income of
49.89 cents per unit has been declared payable to unit holders recorded in the
register of the Fund at the close of business on the record date.
In compliance with the requirements of STRATE, the following dates are
applicable:
Last day to trade "cum" the dividend Friday, 22 June 2007
Date trading commences "ex" the dividend Monday, 25 June 2007
Record Date Friday, 29 June 2007
Date of Payment Monday, 2 July 2007
Unit certificates may not be dematerialised or rematerialised during the period
Monday, 25 June 2007 to Friday, 29 June 2007, both days inclusive.
By order of the Board
Cape Town
5 June 2007
Designated Advisor
Ernst & Young Sponsors (Pty) Ltd
(Registration Number: 2000/031843/07)
Date: 05/06/2007 08:55:49 Produced by the JSE SENS Department.
