| Thu 1 Nov 2007, 12:00 | | SAT - SA Reit Limited - Audited results for the ye |
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SAT - SA Reit Limited - Audited results for the year ended 31 August 2007
SA REIT LIMITED (formerly Shops for Africa Limited)
(Incorporated in the Republic of South Africa)
(Company registration number 2000/018084/06)
Share code: SAT & ISIN: ZAE000104196
("SA REIT")(the "company")
AUDITED RESULTS FOR THE YEAR ENDED 31 AUGUST 2007
Audited Audited
31 August 31 August
BALANCE SHEET Notes 2007 2006
R`000 R`000
ASSETS
Non-current assets 20,604 18,388
Equipment 91 0
Investments 1 20,513 18,388
Current assets 14,173 8,200
Accounts receivable 1,492 0
Cash and cash equivalents 12,681 8,200
TOTAL ASSETS 34,777 26,588
EQUITY AND LIABILITIES
Capital and reserves 29,800 24,010
Share capital 721 721
Share premium 559 559
Fair value reserve 10,104 8,287
Retained earnings 18,416 14,443
Non-current liability 1,714 1,406
Deferred tax liability 1,714 1,406
Current liabilities 3,263 1,172
Interest payable on debentures 0 11
Accounts payable 30 169
Loan payable 2 1,509 0
Taxation payable 1,724 992
TOTAL EQUITY AND LIABILITIES 34,777 26,588
Net asset value per share (in cents) 41.3 33.3
Number of shares in issue 72,114,720 72,114,720
Audited Audited
12 months 16 months
ended ended
31 August 31 August
INCOME STATEMENT Notes 2007 2006
R`000 R`000
REVENUE 3 5,868 3,072
Operating income/(loss) 2,181 (1 389)
Investment income 2,533 3,072
Finance costs (9) (78)
Profit before taxation 4,705 1,605
Taxation (732) (446)
Income attributable to ordinary shareholders 3,973 1,159
Number of shares in issue 72,114,720 72,114,720
Weighted average number of shares in issue 72,114,720 72,114,720
Basic and diluted earnings per share (cents)4 5.51 1.61
Loss on sale of investment properties - 0.31
Realised profit on available-for-sale
investments (4.62) -
Tax effects 0.46 (0.05)
Headline earnings per share (cents) 4 1.35 1.87
NOTES:
1. Investments comprise 644 043 A units and 644 043 B units in
ApexHi Properties Limited.
2. The loan is from an affiliated company and has been repaid subsequent to
the year end.
3. Revenue comprises interest income of R2.5 million and profit on sale of
ApexHi C units of R3.3 million.
4. The basic and headline earnings per share are based on income
attributable to ordinary shareholders and the weighted number of shares
in issue.
Audited Audited
12 months 16 months
CASH FLOW STATEMENT ended ended
31 August 31 August
2007 2006
R`000 R`000
Cash flows from operating activities
Cash utilised by operations (2 785) (1 652)
Investment income 2,533 3,072
Finance costs (20) (968)
Taxation paid - (3 623)
Net cash outflow from operating activities (272) (3 171)
Cash flows from investing activities
Additions to equipment to expand operations (91) -
Proceeds from disposals of investments 3,335 -
Net cash inflow from investing activities 3,244 -
Cash flows from financing activities
Increase in loans 1,509 -
Net cash inflow from financing activities 1,509 -
Net increase/(decrease) in cash and cash equivalents 4,481 (3 171)
Cash and cash equivalents at beginning of
year/period 8,200 11,371
Cash and cash equivalents at end of year/period 12,681 8,200
STATEMENT OF CHANGES IN EQUITY
Share Share Fair value
capital premium reserve
R`000 R`000 R`000
Balance at 1 May 2005 721 559 3608
Total recognised income 0 0 4,679
Profit for the period - - -
Fair value gain on available-for-sale
investments - - 4,679
Balance at 31 August 2006 721 559 8,287
Balance at 1 September 2006 721 559 8,287
Total recognised income 0 0 1,817
Profit for the period - -
Fair value gain on available-for-sale
investments - - 1,817
Balance at 31 August 2007 721 559 10,104
Retained Total
earnings equity
R`000 R`000
Balance at 1 May 2005 13,284 18,172
Total recognised income 1,159 5,838
Profit for the period 1,159 1,159
Fair value gain on available-for-sale investments - 4,679
Balance at 31 August 2006 14,443 24,010
Balance at 1 September 2006 14,443 24,010
Total recognised income 3,973 5,790
Profit for the period 3,973 3,973
Fair value gain on available-for-sale investments - 1,817
Balance at 31 August 2007 18,416 29,800
COMMENTARY
1. Presentation of Audited Annual Financial Statements
SA REIT is a company domiciled in the Republic of South Africa and
carries on the business of property investment and development. The
financial statements were approved and authorised for issue by the board
of directors on 25 October 2007.
The financial statements have been prepared on the going concern basis
using a combination of the historical cost and fair value basis of
accounting in accordance with International Financial Reporting Standards
(IFRSs), IAS 34 and in the manner required by the Companies Act of South
Africa.
The accounting policies have been applied consistently to all periods
presented in these results.
These annual financial statements are presented in South African Rands,
which is the functional currency of the company, rounded to the nearest
thousand.
The preparation of financial statements requires management to make
judgements, estimates and assumptions that effect the application of
accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in any future periods affected.
KPMG Inc., the company`s auditors, has issued an unqualified audit
opinion on the annual financial statements for the year ended 31 August
2007, which is available for inspection at the company`s registered
office. These financial statements have been summarised for the purposes
of this announcement.
2. Code of Corporate Practice and Conduct
The company has adopted and applied the Code of Corporate Practices and
Conduct as set out in the King II Report.
3. General review
The primary component of income is interest received on cash deposits and
interest received on the holdings of ApexHi units. During the year under
review, ApexHi converted its A and B units, into A, B and C units.
The company disposed of its C units for a total consideration and profit
of R3.3 million.
4. Subsequent events
Subsequent to year-end, the company entered into various agreements to
acquire properties and restructure the company as set out in the Circular
incorporating Revised Listing Particulars sent to shareholders, on 5
September 2007 and the Announcements dated 27 September 2007 and 19
October 2007.
Accordingly, additional directors were appointed, the authorised share
capital of the company was increased, the unissued shares were placed
under the control of the directors, shares were issued, a new memorandum
and articles of association were adopted, a share incentive scheme was
adopted , and the company`s name was changed to SA REIT LIMITED with the
company`s shares commencing trading on the lists of the JSE Ltd under its
new name with effect from the commencement of trading on Monday 22
October 2007.
5. Prospects
The medium to long-term objective is to grow the company`s asset base in
a controlled manner. The development of additional bulk and the
properties specifically acquired for development will remain a focus of
management. Once these value-added opportunities are unlocked the
portfolio will achieve greater diversification, more critical mass and
enhanced earnings capacity. The company is well positioned to take
advantage of improving property fundamentals.
For and on behalf of the Board
ARNOLD AARON MARESKY
Chief Executive Officer
Cape Town
26 October 2007
Directors: M Kaplan (Chairman)*, J Bielich, L H Cohen*, D B Fabian*,
A Groll*, A A Maresky (CEO), R S Schur*, A J Shapiro*, A Varachhia*,
M Wagenheim *non-executive
Company secretary: M Wagenheim
Registered office: Suite 102, INTABA, 25 Protea Road, Claremont, Cape Town.
7708.
Postal address: Suite 102, INTABA, 25 Protea Road, Claremont, Cape Town.
7708.
Contact details: tel: 021 674 5170. fax: 021 674 5135.
e-mail: info@sareitltd.com
Transfer secretaries: Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street, Johannesburg. 2001 (PO Box 61051, Marshalltown. 2107)
Bank: ABSA Bank Ltd, 1st Floor Tijgerpark IV Building, Willie van
Schoor Drive, Tyger Valley, Bellville. 7530. (PO Box 4453, Tyger Valley,
7536)
Investment bank and Sponsor: Nedbank Capital, a division of Nedbank Ltd
3rd Floor, Corporate Place, Nedbank Sandton, 135 Rivonia Road, Sandton. 2196.
(PO Box 1144, Johannesburg. 2000)
Auditors: KPMG Inc., 1 Mediterranean Street, Foreshore, Cape Town. 8001.
(PO Box 4609, Cape Town. 8000)
Attorneys: Edward Nathan Sonnenbergs Inc., 1 North Wharf Square,
Loop Street, Cape Town. 8001. (PO Box 2293, Cape Town. 8000)
Date: 01/11/2007 12:00:03 Produced by the JSE SENS Department.
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