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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 01 April 2007 to
31 March 2008 as follows:
ABRIDGED INCOME STATEMENT
for the year ended 31 March 2008
12 months 12 months
2008 2007
R `000 R `000
Revenue 42,157 32,341
Expenses 15,093 10,302
Net income from rental operations 27,064 22,039
Fair value adjustment to investment properties
excluding straight lining of lease income 21,359 10,307
Operating profit for the year 48,423 32,346
Interest received 1,681 2,557
Interest paid (12) (15)
Net profit for the year 50,092 34,888
Headline earnings and distribution income
reconciliation
Net profit for the year 50,092 34,888
Adjusted for:
Fair value adjustment to investment properties (21,359) (10,307)
Headline earnings 28,733 24,581
Less: Straight line lease accrual (2,799) (2,141)
Distribution including non-permissible income 25,934 22,440
Non-permissible rental income (1,128) (731)
Non-permissible interest income (1,681) (2,557)
Distribution excluding non-permissible income 23,125 19,152
Weighted average units in issue 25,525 22,231
Basic earnings per unit including non-permissible
income (cents) 196.2 156.9
Headline earnings per unit including non-permissible
income (cents) 112.6 110.6
Distribution per unit including non-permissible
income (cents) 101.6 100.9
Distribution per unit excluding non-permissible
income (cents) 90.6 86.1
Net asset value per unit (cents) 1,254 1,154
ABRIDGED BALANCE SHEET
as at 31 March 2008
2008 2007
R `000 R `000
ASSETS
Non-current assets 342,087 264,190
Investment properties 291,263 261,152
Straight line lease accrual 5,837 3,038
Available-for-sale financial assets 44,987 -
Current assets 15,635 17,068
Trade and other receivables 2,996 2,820
Cash and cash equivalents 12,639 14,248
Total assets 357,722 281,258
UNITHOLDERS` FUNDS AND LIABILITIES
Unitholders` funds 339,298 265,150
Current liabilities 18,424 16,108
Trade and other payables 4,213 4,138
Unitholders for distribution 12,574 10,899
Non-permissible income for dispensation 1,637 1,071
Total unitholders` funds and liabilities 357,722 281,258
ABRIDGED STATEMENT OF CHANGES IN UNITHOLDERS` FUNDS
for the year ended 31 March 2008
Capital Non-distributable
of the Fund reserve
R `000 R `000
Balance at 01 April 2006 198,458 18,991
Issue of units 35,253 -
Transfer to non-distributable reserve - 12,448
Net profit for the year ended 31 March
2007 - -
Distribution to unitholders - -
Dispensation of non-permissible income - -
Balance at 01 April 2007 233,711 31,439
Issue of units 49,980 -
Transaction costs for issue of new units (34) -
Fair value gain on available-for-sale
financial assets - -
Distribution received in advance (2,028) -
Transfer to non-distributable reserve - 24,158
Net profit for the year ended 31 March
2008 - -
Distribution to unitholders - -
Dispensation of non-permissible income - -
Balance at 31 March 2008 281,629 55,597
Available-for-sale Retained Total
reserve income
R `000 R `000 R `000
Balance at 01 April 2006 - - 217,449
Issue of units - - 35,253
Transfer to non-distributable
reserve - (12,448) -
Net profit for the year
ended 31 March 2007 - 34,888 34,888
Distribution to unitholders - (19,152) (19,152)
Dispensation of
non-permissible income - (3,288) (3,288)
Balance at 01 April 2007 - - 265,150
Issue of units - - 49,980
Transaction costs for issue of
new units - - (34)
Fair value gain on
available-for-sale
financial assets 2,072 - 2,072
Distribution received in
advance - 1,386 (642)
Transfer to non-distributable
reserve - (24,158) -
Net profit for the year ended
31 March 2008 - 50,092 50,092
Distribution to unitholders - (24,511) (24,511)
Dispensation of
non-permissible income - (2,809) (2,809)
Balance at 31 March 2008 2,072 - 339,298
ABRIDGED CASH FLOW STATEMENT
for the year ended 31 March 2008
12 months 12 months
2008 2007
R `000 R `000
Cash generated from operations 24,164 21,353
Interest paid (12) (15)
Interest received 1,681 2,557
Unitholders for distribution (23,478) (12,303)
Non-permissible income dispensed (2,243) (4,313)
CASH FLOWS FROM OPERATING ACTIVITIES 112 7,279
CASH FLOWS FROM INVESTING ACTIVITIES (51,667) (117,441)
CASH FLOWS FROM FINANCING ACTIVITIES 49,946 35,253
NET DECREASE IN CASH AND
CASH EQUIVALENTS (1,609) (74,909)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
YEAR 14,248 89,157
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 12,639 14,248
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.
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 2008, the Fund comprised of 7 properties with a value of
R297,1 million. By gross rental, 54% of the property portfolio is retail, 16% is
offices and 30% is industrial.
Since listing the focus of OCPFM has been primarily on investing to improve:
- The quality of properties in the portfolio
- The quality of the tenant mix.
- The quality of the operating environment
- Investment in listed global property
As a result of this the portfolio is exceptionally well positioned to benefit
from the strong fundamentals in the property market in terms of net asset value
and income generation.
In the industrial component of the portfolio current rentals are significantly
below market rentals and this will come through as leases are renewed.
The successful introduction of offshore investment provides scalability,
geographical and currency diversification to the portfolio which significantly
reduces the risk of the portfolio. The cost of investment in the Crescent
Global Property Equity Fund amounted to R42,9m as at 31 March 2008 and the
market value was R45 million. It is our objective to increase the offshore
exposure at an appropriate time to take advantage of the recent announcements
by the Minister of Finance to increase the offshore exposure of CIS management
companies. The investment in the global fund has also resulted in a dilution in
distribution of 4 cents per unit which is temporary and negligible as compared
to the benefits of geographical and currency diversification which the Fund now
enjoys.
3. PORTFOLIO VALUATION
The investment properties were independently valued by Mills Fitchet Magnus
Penny (Pty) Ltd on 31 March 2008 and the portfolio was valued at R297,1 million.
4. CAPITAL COMMITMENTS
As at 31 March 2008, there were no capital commitments (2007:R4,2 million) to be
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 and growth in distribution from Crescent Global Property Equity Fund
subject to any dilutions.
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 unitholders 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 `000 R `000 R `000
Income statement
Rental and related income 20,418 6,247 11,408
Income from investments - - -
Straight lining of lease income 496 1,248 1,055
Property expenses 9,341 1,718 1,643
Service charges - - -
Other operating expenses - - -
Fair value adjustment to investment
properties excluding straight lining
of lease income 540 3,395 17,424
Segment result
Operating profit 12,113 9,172 28,244
Balance sheet
Investment properties 137,465 41,488 112,310
Straight line lease accrual 985 2,212 2,640
Available-for-sale financial assets - - -
Corporate Total
R R
R `000 R `000
Income statement
Rental and related income - 38,073
Income from investments 1,285 1,285
Straight lining of lease income - 2,799
Property expenses - 12,702
Service charges 1,571 1,571
Other operating expenses 820 820
Fair value adjustment to investment properties
excluding straight lining of lease income - 21,359
Segment result
Operating profit (1,106) 48,423
Balance sheet
Investment properties - 291,263
Straight line lease accrual - 5,837
Available-for-sale financial assets 44,987 44,987
8. RELATED PARTY TRANSACTIONS AND BALANCES
Identity of the related parties with whom material transactions have occurred.
Oasis Crescent Property Fund Managers Limited is the management company of the
Fund in terms of the Collective Investment Schemes Control Act.
Eden Court Property Fund (Pty) Limited is the entity that owns any property
that is not Shari`ah compliant. Rentals are collected by Eden Court Property
Fund (Pty) Limited and expenses are paid and recovered by Oasis Crescent
Property Fund Managers Limited on behalf of the Fund from Eden Court Property
Fund (Pty) Limited.
Oasis Group Holdings (Pty) Limited is a tenant at the Ridge@Shallcross.
As disclosed in the prospectus of Crescent Global Property Equity Fund a
management fee is charged for investing in Crescent Global Property Equity Fund
by Oasis Global Management Company (Ireland) Limited, the manager of the fund.
There are common directors to Oasis Crescent Property Fund Managers Limited,
Eden Court Property Fund (Pty) Limited, Oasis Group Holdings (Pty) Limited, and
Oasis Global Management Company (Ireland) Limited. 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 management fee on a monthly basis
to Oasis Crescent Property Fund Managers Limited.
12 months 12 months
2008 2007
Related party transactions R `000 R `000
Service charge paid to Oasis Crescent Property Fund
Managers Limited 1,571 1,356
Property management fees paid to Oasis Crescent
Property Fund Managers Limited 686 529
Expense recoveries from Eden Court Property Fund
(Pty) Limited 999 554
Rental, related income and deposit from Oasis Group
Holdings (Pty) Limited at the Ridge@Shallcross 322 146
Related party balances
Trade receivables from Eden Court Property Fund
(Pty) Limited 123 56
Trade receivables from Oasis Group Holdings (Pty)
Limited - 7
123 63
Trade payables to Oasis Group Holdings (Pty) Limited 38 -
Trade payables to Oasis Crescent Property Fund
Managers Limited 225 191
263 191
9. INCOME DISTRIBUTION
Notice is hereby given that a distribution after non-permissible income in
respect of the previous 6 month period of 45.49 cents per unit has been declared
payable to unitholders, with the option for unitholders to elect to receive such
distribution in units ("the distribution").
Should any unitholder elect to receive his distribution in units, then he will
be entitled to receive such rounded number of units as may be determined by
multiplying the number of units held by him on the record date by a ratio equal
to 3.79083 for every 100 units held.
Unitholders should take note of the corporate action timetable as set out below
in respect of the above distribution and the election in terms thereof.
2008
Circular with form of election posted to Monday, 23 June
unitholders on
Declaration announcement on SENS Monday, 23 June
Finalisation announcement on SENS Monday, 30 June
Last day to trade in order to be eligible for Friday, 11 July
distribution
Trading commences ex-entitlement Monday, 14 July
Listing maximum number of units at commencement of Monday, 14 July
trade on
Closing date for election of distribution in units Friday, 18 July
at 12:00 (See note 4) on
Record date for distribution Friday, 18 July
Unit certificates and/or distribution cheques Monday, 21 July
posted and CSDP/broker accounts updated on
Announcement of the results of the distribution Monday, 21 July
Adjustment to the number of new units listed on or Wednesday, 23 July
about
Note:
1. Units may not be dematerialised or rematerialised between Monday, 14 July
2008 and Friday, 18 July 2008, both days inclusive.
2. The above dates and times may be subject to change. Any changes will be
released on SENS.
3. All times quoted are South African times.
4. Dematerialised unit holders are requested to ascertain from their broker or
CSDP as to the cut-off time required by them in order to advise the transfer
secretaries of their election.
5. If no election is made, unit holders will receive the cash distribution.
By order of the Board
Cape Town
20 May 2008
Designated Adviser - PSG Capital (Proprietary) Limited
Date: 23/05/2008 17:05:01 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
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