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SAC
SAC
SAC - SA Corporate - Unaudited Interim Results And Distribution Declaration
30 June 2009
SA CORPORATE REAL ESTATE FUND
(Incorporated in the Republic of South Africa)
Share Code: SAC ISIN Code: ZAE000083614
A Collective Investment Scheme in property registered in terms of the
Collective Investment Schemes Control Act, No. 45 of 2002 and managed by SA
Corporate Real Estate Fund Managers Limited ("SA Corporate Fund Managers")
(Registration number 1994/009895/06)
("SA Corporate" or "the Fund")
UNAUDITED INTERIM RESULTS AND DISTRIBUTION DECLARATION 30 JUNE 2009
Interim distribution
- 14,45 cents per unit
Strong occupancy levels
- 6% of lettable space vacant
- tenant retention ratio of 79% (based on lettable area)
Low debt risk
- low gearing of 16%
- earliest maturity in December 2012
Portfolio valuation
- properties independently valued at R8,98 billion
- unit price of 253 cents per unit at 28% discount to net asset value of
353 cents per unit
INTRODUCTION
SA Corporate is a JSE listed Property Unit Trust which owns a portfolio of
retail, industrial and office buildings located primarily in the major
metropolitan areas of South Africa.
The impact of the weakening economy is reflected in the interim results.
Management has taken cognisance of this in the assessment of provisions.
In October 2008 the Fund announced its intention to dispose of certain
properties with the objectives of reducing the number of properties within
the portfolio and improving the overall quality of the Fund`s property
portfolio and earnings. Progress in terms of the disposal strategy is being
dealt with later in this results announcement.
FINANCIAL RESULTS AND PORTFOLIO PERFORMANCE
Distributable earnings for the six months amounted to R301m (2008: R306m).
This equates to a distribution of 14,45 cents per unit for the 6 months under
review (2008: 14,50 cents).
The net income per sector is reflected in the table below:
30.06.09 % of total 31.12.08 % of total 30.06.08
Retail 192,011 62 426,306 6 204,845
Industrial 137,153 45 240,709 38 125,083
Offices & other 37,267 12 67,229 11 26,817
Corporate (58,370) (19) (99,626) (16) (71,996)
308,061 100 634,618 100 284,749
The Fund`s retail portfolio comprises 56% of the total portfolio value and
43% of the gross lettable area. It is dominated by smaller retail centres
which make up more than two thirds of the retail portfolio by value. The
difficult economic environment has led to challenging retail conditions which
have influenced the demand for space, causing a slower take up of vacancies
and curtailing market rental growth. While the rental levels achieved on
renewals were up by an average of 10% on closing rentals, vacancies have
increased to 8% of the retail lettable space (2008: 6%). Turnover rental for
the year under review amounts to R2,1m, 0.5% of total rental, down 13% on the
previous year`s R2,4m and reflects the decline in consumer spending.
The industrial portfolio, which makes up 35% of total portfolio value and 51%
of gross lettable area, comprises warehousing, workshops and distribution
facilities. This portfolio has performed well in a challenging industrial
market and has continued to enjoy excellent occupancy levels throughout the
period under review, however space that has become available is remaining
unlet for longer periods of time. The vacancy factor at the end of June has
increased to 3% of the total lettable space (2008: 1%). The increase in the
vacancy factor is mainly due to the vacancy at the Paarden Eiland Development
in Cape Town which was completed in December 2008. The overall vacancy
position remains positive and continues to reflect the quality of the Fund`s
industrial portfolio. Average rentals of leases renewed during the 6 month
period to 30 June 2009 is 18% higher than the closing rentals.
The Fund`s office portfolio comprises 9% of the total property portfolio
value and 6% of the gross lettable area, hence the impact of this sector on
the Fund`s overall performance is limited. The rentals in terms of leases
renewed in this sector grew by an average of 6%. However the vacancy factor
has increased to 11% of lettable office space (2008: 10%) and the majority of
the increase in these vacancies is as a result of vacant offices which form
part of retail centres.
The rental growth from escalations and positive lease reversions has been
diluted by the increase in vacancies, mainly within the retail portfolio, the
effect of bad debts and an increase in the impairment of trade receivables.
The overall vacancy factor as at 30 June 2009 is 6% of total lettable space,
which has increased from 4% at the end of December 2008. The vacancy amounts
to 8% of total rental income (2008: 6%) and, as detailed above, this increase
is mainly in the retail portfolio. The total annualised lost rental income
for this six month period attributable to these vacancies amounts to
approximately R34m and is a key area of management focus.
During the period under review bad debts of R1,4m were written off and the
impairment of debtors increased from R16,1m to R29,4m. This equates to 69%
(2008: 36%) of arrear rentals and is a consequence of a revised management
policy.
The breakdown of distributable earnings is set out below:
6 months to 6 months to 12 months to
30.06.2009 30.06.2008 31.12.2008
DISTRIBUTABLE EARNINGS (R000) Unaudited Unaudited Audited
Rent (excluding straight lining
adjustment) 410,107 386,960 798,164
Net property expenses (43,676) (30,215) (63,920)
Property expenses (159,449) (126,975) (284,498)
Recovery of property expenses 115,773 96,760 220,578
Net property income 366,431 356,745 734,244
Interest income from associate
company (Oryx) 6,930 5,999 12,511
Net funding cost (55,823) (34,738) (75,385)
Interest received 25,028 9,530 39,821
Interest paid (80,851) (44,268) (115,206)
Fund expenses (20,177) (22,084) (44,516)
Distribution contributions 3,447 162 162
Distribution prepaid received in advance - 162 162
Lapsed distribution on units bought back 3,447 - -
Distributable earnings 300,808 306,084 627,016
Units in issue 2,081,869 2,110,926 2,104,469
Distribution (cents per unit) 14,45 14,50 29,75
1st Interim 14,45 14,50 14,50
Final N/A N/A 15,25
REVALUATION
The value of the Fund`s property portfolio at 30 June 2009 was R8,98bn (2008:
R8,95bn). The portfolio was independently valued by Broll CBRE on a
discounted cash flow basis.
The following table represents the standing portfolio`s (those properties
held for the 24 months preceding the reporting period) capital movement;
Property type Growth over HY 2008 (%) Growth over YE 2008 (%)
Retail 0.1 1.5
Industrial (incl Motor Showrooms) (3.9) 1.7
Offices (2.9) (0.3)
Portfolio total (1.6) 1.4
The standing portfolio saw a decrease in value of 1,6% since 30 June 2008,
with the industrial portfolio showing capital decline of 3.9%, the office
portfolio a decrease of 2.9% and the retail portfolio an increase of 0.1%.
An increase in vacancies and vacancy periods, as well as the resulting
pressure on market rentals has been included in the valuation assumptions.
The valuations reflect an increase in capitalisation rates ranging from 1.1%
to 1.5% and higher risk premiums in discount rates has resulted in an overall
decrease in valuations year on year and is considered a fair reflection of
the current market. The growth over YE 2008 is encouraging and could signal a
stabilisation in valuations.
Current land and building values reflected as a rate per m2 for the standing
portfolio are considered commensurate with market, with industrial being at
R4 098/m2, retail at R8 946/m2 and offices at R8 910/m2.
The forward valuation yields and internal rates of return (IRR`s) of the
three property types in the Fund`s standing portfolio at 30 June 2009,
calculated on a weighted basis, are as follows:
Property type Initial (forward) yield (%) IRR (%)
Retail 9.1 14.7
Industrial 9.4 15.4
Offices 9.1 15.0
Portfolio total 9.2 14.9
PORTFOLIO INVESTMENT ACTIVITY
The portfolio comprises 183 properties. The sectoral and geographic
weightings by value are set out below:
Sectoral Spread
Retail
56%
R5,07b
53 props
616 685m2
Industrial
35%
R3,07b
99 props
716 884m2
Offices and Other 9%
R0,84b
31 props
85 737m2
Geographic Split
Gauteng
42%
R3,77b
74 props
639 402m2
KwaZulu Natal
43%
R3,9b
80 props
588 519m2
Western Cape
9%
R0,76b
17 props
123 206m2
Other
6%
R0,56b
12 props
68 179m2
Philani Shopping Centre in Umlazi, Durban has not lived up to management`s
expectations and continues to experience difficult trading conditions. This
is reflected by its high vacancy rate of 18%. Due to the current economic
climate, few retailers are prepared to expand, particularly into these type
of centres, resulting in management experiencing difficulties in placing
suitable tenants in the vacant space.
In December 2008 SA Corporate completed the construction of a 15,900m2 high
tech industrial development in Paarden Eiland, Cape Town. A total of 7,560m2,
which represents 48% of the area, has been let to date and management is
optimistic that the leasing of the units will continue to improve.
MAJOR CAPITAL PROJECTS
As at 30 June, committed capital expenditure stands at R224m. The significant
projects are:
Northpark Mall is currently under redevelopment. The scheme provides for a
complete upgrade to the common areas with particular focus on improving the
shopping experience, including improved mall access, lines of sight and shop
fronts. The estimated cost of the project is R82 million and the completion
date is estimated to be March 2010. The scheme is well let to nationals and
the development team is currently in negotiations with a new food anchor for
the centre.
Shoprite Kempton Park is undergoing Phase 1 of its redevelopment. This phase
will convert the large Shoprite box into a smaller food anchor store, create
a new mall entrance and line shops as well as a complete upgrade to the
facade. Phase 1 is nearing completion with Shoprite having taken beneficial
occupation of their box and the letting status is 92% pre-let. The estimated
cost for Phase 1 is R43 million.
A complete refurbishment of Comaro Crossing is underway, with upgrades to all
common areas, road surfaces facades and signage at a total cost of R11,9
million.
Unipark Offices, a 5,500m2 office building in Bloemfontein which is
predominantly let to Vodacom and Quintiles is nearing completion. The project
is estimated to cost R55 million and is currently forecasting yields ahead of
budget.
ACQUISITIONS AND DISPOSALS
The only acquisition made during the current financial year was Renbro
Shopping Centre. The investment, although dilutionary, is a quality property
and will enhance the overall portfolio.
Cost (Rm) Acquisition Yield Sector Region
date forecast 1st
12 months (%)
Renbro Shopping Centre 106,2 04/2009 10.83 Retail Gauteng
The new management of the Fund has continued with the disposal strategy. The
initial disposal list of some R1.9bn was reviewed and, excluding
unconditional disposals of R157m and conditional disposals of R117m, stands
at R1,4bn as at 30 June 2009. This disposal portfolio consists 58 properties
(65% retail, 24% industrial, 6% office and 5% hospitals by value) and would
reduce the number of properties from 183 to 125. Further rationalisation is
likely in addition to the already identified disposal list.
Several sale agreements have already been concluded, some of which are now
unconditional with others pending the fulfillment of suspensive conditions.
Management believes that the disposals support the Fund`s objective of
improving the quality of the portfolio and sustainability of earnings.
Disposing of many of the smaller properties together with other non-core
assets will improve focus and manageability. The Fund`s investment philosophy
will place an emphasis on the dominance and lettability of each asset in
strong nodes and growing markets.
The investment strategy is to utilise capital from disposals to fund existing
capital commitments, retail refurbishments and tenant driven extensions.
Selective acquisitions that meet the strict investment philosophy will also
be considered. Surplus proceeds will be directed towards the buy back of the
Fund`s units which were trading at a 28% discount to NAV. The alternatives
of repaying debt and holding cash for property investment will continue to be
monitored.
Transferred disposals in the 6 months to 30 June 2009
Property Disposal date Proceeds (Rm) December 2008 Exit yield
valuations on sale
(Rm) price (%)
Cnr Chancery Lane
& Crompton Street, vacant
Pinetown 03/2009 4,3 4,1 possession
24 Chancery Lane,
Pinetown 03/2009 25,9 25,9 8.5
20 Commercial Street, vacant
Strydom Park 03/2009 23,0 19,5 possession
54 Main Road, Fish Hoek 05/2009 21,9 21,6 10.7
16 Nourse Avenue, Cape
Town 05/2009 7,8 7,6 10.2
Widah Bird Investments
(Pty) Ltd 05/2009 1,5 1,5 15.0
15 Tedstone Road,
Wadeville 05/2009 22,0 21,8 8.5
Forktailed Drongo
Investments (Pty) Ltd 05/2009 3,5 3,5 17.0
Unconditional disposals
Property Contracted Contracted June 2009 Exit yield
date sale price valuations on sale
(Rm) (Rm) price (%)
Queensburgh 02/2009 91,0 89,8 9.3
1 Circuit Road - Westmead 05/2009 9,6 9,5 9.0
Knowles 04/2009 57,5 57,5 8.4
There are a further five properties to the value of R117m which are
contracted but subject to suspensive conditions.
LEASE EXPIRIES AND VACANCIES
The vacant retail space in the Fund`s portfolio is largely attributable to
smaller line shops but also includes vacant space in Northpark Mall which is
under refurbishment and the cinema space in St Georges Mall which is being
converted to big box retail. Vacancies as at 30 June 2009 are set out in the
table below:
Property type % of area % of total rental
Retail 8 11
Industrial 3 4
Office 15 8
Portfolio total 6 8
The lease expiry profile of the respective components of the property
portfolio by area is as follows:
Property Total Vacant 2009(%) 2010(%) 2011(%) 2012(%) Thereafter
type area or
(m2) expired (%)
(%)
Retail 616,685 15 13 11 15 12 34
Industrial 716,884 4 8 30 16 22 20
Office 85,737 6 6 31 19 14 24
Portfolio total 1,419,306 9 10 22 16 17 26
By area, 3% of the portfolio is subject to leases which have expired. The
terms of approximately two thirds of these leases have been agreed and are
subject to the furnishing of final documentation.
The retail lease expiries for the remainder of 2009 of approximately 13% of
gross lettable area represent 78,000m2 of retail space. Approximately 76% of
this space is in respect of units greater than 500m2 where there is a high
probability of renewal. The balance, being line shops, carries greater risk
both in terms of renewal and achievement of asking rentals.
The industrial expiries for the remainder of 2009 represent 58,000m2 and
leases expiring during 2010 represent 212,000m2 of space. Indications are
that there should be upliftment in renewal rentals in respect of average
rentals relative to the 58,000m2 for the remainder of 2009.
BORROWINGS
With increasing levels of debt, interest expense has increased when compared
to June 2008. However, debt levels have remained low at 16% of the total
investment portfolio value at 30 June 2009. There are no liabilities maturing
which would require refinancing in the short term, with the first maturity
being R500m in December 2012. Interest rates on all loans have been fixed.
The debt profile is detailed below:
Type Maturity Step Fix expiry Bank Quantum Current Rate
%pa (Rm) (%)
Floating -
Fixed - straight 31/10/2015 n/a 13/09/2013 Nedbank 100 10.57
Fixed - straight 31/12/2012 n/a 31/12/2012 OMSFIN 500 10.82
Fixed - stepped 18/09/2014 6 30/04/2013 ABSA 300 11.20
Fixed - stepped 18/09/2014 6 05/06/2013 ABSA 400 11.64
Fixed - stepped 13/08/2013 6 13/08/2013 OMSFIN 270 10.88
Total 1 570 11.10
In addition, a R200m variable rate overdraft facility has been secured.
Interest on this facility is at prime less 1.5%.
UNITS REPURCHASED
In April 2009, 22,600,000 units were bought back in terms of the unit buy
back program. This was just prior to the last day to register for the 2008
final distribution. The total once-off enhancement in earnings as a result of
the buy-back is 0.17 cpu.
EMPOWERMENT AND TRANSFORMATION
There are certain elements of the DTI codes that the Fund is unable to comply
with due to legislative restrictions that are placed on the Fund via the
Collective Investments Schemes Control Act. The Fund will obtain an official
BBBEE rating once the Property Sector Charter has been gazetted under Section
9(1) of the BEE Act.
In terms of its internal review and rating process that has taken place, the
Fund has made positive progress, particularly in the category of preferential
procurement.
PROSPECTS
Necessary capital expenditure to maintain the condition and lettability of
the properties will be income dilutive in the short term, but will
significantly improve the quality and sustainability of future income growth.
Asset disposals are expected to be greater than capital expenditure on
retained assets and selective acquisitions, which together with the unit
price trading at a significant discount to NAV, will see the fund continue to
pursue unit buybacks and alternative debt structures.
The implementation of the Fund strategy in addition to an expected recovery
in the economy and more effective leasing and debt collections is likely to
bear fruit, the full impact of which is not expected to be felt in the
current year. To maintain 2008 distributions in the current year will be a
challenge.
The above information has not been reviewed or reported on by the Fund`s
auditors.
6 months to 6 months to 12 months to
CONSOLIDATED STATEMENT OF 30.06.2009 30.06.2008 31.12.2008
FINANCIAL POSITION (R000) Unaudited Unaudited Audited
Assets
Non-current assets
Investment property 7,161,605 8,767,519 6,835,725
At valuation 7,303,385 8,772,092 6,932,003
Straight line rental adjustment (141,780) (130,923) (134,848)
At cost - 126,350 38,570
Investment in associate 175,238 171,626 173,150
Goodwill - 1,009,143 -
Interest rate swap derivative - 16,990 -
Rental receivable straight line
adjustment 115,171 113,607 112,123
7,452,014 10,078,885 7,120,998
Current assets 2,196,897 586,695 2,502,697
Properties classified as held for
disposal 1,678,716 57,150 1,861,110
Trade receivables 18,775 50,571 34,217
Other receivables and accrued interest 121,333 94,536 141,665
Rent receivable - straight line rental
adjustment 26,609 17,316 22,726
Cash resources and short term
investments 351,464 367,122 442,979
Total assets 9,648,911 10,665,580 9,623,695
Unitholders` funds and liabilities
Unitholders` funds 7,347,989 8,699,335 7,260,893
Non-current liabilities
Interest bearing borrowings 1,573,018 1,300,000 1,571,283
At nominal value 1,570,000 1,300,000 1,570,000
Effective interest rate adjustment
on stepped debt of R270 million 3,018 - 1,283
Interest rate swap derivative 77,503 - 93,652
Deferred taxation 231,568 303,250 238,201
1,882,089 1,603,250 1,903,136
Current liabilities 418,833 362,995 459,666
Trade and other payables 103,468 40,880 123,026
Capital gains tax and secondary
taxation on companies 13,391 15,033 14,529
Unclaimed distributions 1,166 998 1,179
Distributions payable 300,808 306,084 320,932
Total unitholders` funds and
liabilities 9,648,911 10,665,580 9,623,695
6 months to 6 months to 12 months to
CONSOLIDATED STATEMENT OF 30.06.2009 30.06.2008 31.12.2008
COMPREHENSIVE INCOME (R000) Unaudited Unaudited* Audited
Revenue 535,988 454,711 1,024,261
Income 574,192 472,912 1,080,789
Rent 410,107 386,960 798,164
Straight line rental adjustment 10,108 (29,009) 5,519
Recovery of property expenses 115,773 96,760 220,578
Income received from associate company
Interest Income 6,930 5,999 12,511
Share of post acquisition reserves 6,246 2,672 4,196
Interest 25,028 9,530 39,821
Expenses (262,212) (193,327) (445,503)
Fund Expenses (20,177) (22,084) (44,516)
Accounting and secretarial fees (4,983) (4,614) (9,227)
Audit fees (724) (472) (1,116)
Administrative fees (2,865) (1,449) (4,675)
Service fees (11,605) (15,549) (29,498)
Property administration fees (13,054) (14,763) (33,859)
Property expenses (146,395) (112,212) (250,639)
Interest paid (80,851) (44,268) (115,206)
Effective interest rate adjustment on
stepped debt (1,735) - (1,283)
Deferred tax on straight line rental
adjustment (3,919) 5,164 (668)
Headline earnings 308,061 284,749 634,618
Capital profit on disposal of
investment properties/investments 4,479 24 3,589
Revaluations of investment properties 109,317 178,892 (229,401)
Revaluations 119,425 149,883 (223,882)
Straight line rental adjustment (10,108) 29,009 (5,519)
Goodwill impairment - - (1,009,094)
Impairment of investment in associate (4,158) - -
Taxation 10,552 6,131 77,517
Secondary tax on companies - - (1,137)
On capital transactions 6,633 11,295 77,986
Straight line rental adjustment 3,919 (5,164) 668
Net profit/(loss) attributable to
unitholders 428,251 469,796 (522,771)
Other comprehensive income, net of tax 16,149 16,990 (93,652)
Surplus/(deficit) on revaluation of
interest rate swap derivative 16,149 16,990 (93,652)
Total comprehensive income attributable
to unitholders` 444,400 486,786 (616,423)
* Restated for the reclassification of bad debts from rental to property
expenses
CONDENSED CONSOLIDATED STATEMENT Total Share NDR DR
OF CHANGES IN UNITHOLDERS` FUNDS (R000) Capital
Unitholders` funds at
1 January 2008 8,433,253 7,065,513 1,367,740 -
Total comprehensive income for
the period 486,786 - 16,990 469,796
Net profit for the period 469,796 - - 469,796
Interest rate swap valuation
adjustment 16,990 - 16,990 -
Revaluation of investment properties/
investments - - 178,892 (178,892)
Capital profit on disposal of fixed
properties/investments transferred
to NDR - - 24 (24)
Taxation on property revaluation,
disposals and dividends - - 6,131 (6,131)
Straight line rental adjustment net
of taxation - - (23,845) 23,845
Share of associate company`s
post-acquisition reserves - - 2,672 (2,672)
Distribution prepaid received in advance
transferred to distributable reserves - - (162) 162
21 590 385 units issued at prices
ranging between 409,26 cpu to
414,06 cpu 85,444 85,444 - -
Unit issue costs (64) (64) - -
9,005,419 7,150,893 1,548,442 306,084
Distribution attributable to
unitholders (306,084) - - (306,084)
Unitholders` funds at 30
June 2008 8,699,335 7,150,893 1,548,442 -
Total comprehensive income
for the period (1,103,209) - (110,642) (992,567)
Net profit for the period (992,567) - - (992,567)
Other comprehensive income for
the preiod (110,642) - (110,642) -
Revaluation of investment properties/
investments - - (408,293) 408,293
Goodwill impairment - -(1,009,094)1,009,094
Capital profit on disposal of fixed
properties/investments transferred
to NDR - - 3,565 (3,565)
Taxation on property revaluation,
disposals and dividends - - 71,386 (71,386)
Straight line rental adjustment net
of taxation - - 28,696 (28,696)
Share of associate company`s
post-acquisition reserves - - 1,524 (1,524)
Effective interest rate adjustment - - (1,283) 1,283
Unit issue costs 1 1 - -
6 457 279 units bought back at prices
ranging between 195,37 cpu and
240,94 cpu (14,246) (14,246) - -
Unit buy back costs (56) (56) - -
7,581,825 7,136,592 124,301 320,932
Distribution attributable to
unitholders (320,932) - - (320,932)
Unitholders` funds at 31
December 2008 7,260,893 7,136,592 124,301 -
Total comprehensive income for
the period 444,400 - 16,149 428,251
Net profit for the period 428,251 - - 428,251
Interest rate swap valuation
adjustment 16,149 - 16,149 -
Revaluation of investment properties/
investments - - 109,317 (109,317)
Impairment of investment in associate - - (4,158) 4,158
Capital profit on disposal of fixed
properties/investments transferred
to NDR - - 4,479 (4,479)
Taxation on property revaluation,
disposals and dividends - - 10,552 (10,552)
Straight line rental adjustment net
of taxation - - 6,189 (6,189)
Share of associate company`s
post-acquisition reserves - - 6,246 (6,246)
Effective interest rate adjustment - - (1,735) 1,735
22 600 000 units bought back at
264,97 cpu (59,883) (59,883) - -
Unit buy back costs (60) (60) - -
Lapsed distribution on units
bought back 3,447 - - 3,447
7,648,797 7,076,649 271,340 300,808
Distribution attributable to
unitholders (300,808) - - (300,808)
Unitholders` funds at 30
June 2009 7,347,989 7,076,649 271,340 -
6 months to 6 months to 12 months to
ABRIDGED CONSOLIDATED 30.06.2009 30.06.2008 31.12.2008
CASH FLOW STATEMENT (R000)) Unaudited Unaudited Audited
Net cash flows from operating activities (2,260) (76,037) (8,114)
Net cash flows from investing activities (32,759) (339,141) (501,687)
Net cash flows from financing activities (56,496) 717,420 887,900
Net (decrease)/increase in cash (91,515) 302,242 378,099
Cash resources at beginning of period 442,979 64,880 64,880
Cash resources at end of period 351,464 367,122 442,979
NOTES TO THE FINANCIAL STATEMENTS
The unaudited interim results have been prepared in accordance with
International Financial Reporting Standards (IFRS), IAS 34 - Interim
Financial Reporting, the requirements of the Collective Investment Schemes
Control Act as well as the JSE requirements. The accounting policies are
consistent in all respects with those applied in the prior year.
1 Headline earnings and distribution attributable to unitholders
6 months to 6 months to 12 months to
30.06.2009 30.06.2008 31.12.2008
Unaudited Unaudited Audited
R 000 CPU R 000 CPU R 000 CPU
Net profit/(loss)
for the year 428,251 20,57 469,796 22,26 (522,771) (24,84)
Adjustments for:
Capital (profit)/loss
on disposal of
investment properties (4,479) (24) (3,589)
Revaluation of
investment properties (109,317) (178,892) 229,401
Goodwill 4,158 - 1,009,094
Taxation thereon (10,552) (6,131) (77,517)
Headline earnings 308,061 14,80 284,749 13,49 634,618 30,16
Straight line rental
adjustment (10,108) 29,009 (5,519)
Taxation thereon 3,919 (5,164) 668
Share of associate
company`s after tax profit (6,246) (2,672) (4,196)
Effective interest rate
adjustment on stepped debt 1,735 - 1,283
Distribution prepaid
received in advance - 162 162
Lapsed distribution on
units bought back 3,447 - -
Distributable income 300,808 306,084 627,016
Distributable income
attributable to
unitholders 300,808 14,45 306,084 14,50 627,016 29,75
Interim 300,808 14,45 306,084 14,50 306,084 14,50
Final - - - - 320,932 15,25
Weighted headline
earnings per unit 14,72 13,51 30,10
2 Primary operational segments (R000)
Business segment Industrial Office Retail Group
Extract from statement of
comprehensive income
Rental income 142,994 8,565 228,548 410,107
Straight line rental
adjustment (3,780) 1,152 12,736 10,108
139,214 39,717 241,284 420,215
Net property expenditure (5,723) (1,298) (36,655) (43,676)
Segment result 133,491 38,419 204,629 376,539
Interest income from associate 6,930
Net interest paid (55,823)
Effective interest rate
adjustment on stepped debt (1,735)
Group expenses (20,177)
Share of associate company`s
after tax profit 6,246
Deferred tax on straight line
rental adjustment (3,919)
Headline earnings 308,061
Revaluation of investment
properties excluding straight
line adjustment net of tax 87,882 (2,333) 40,509 126,058
Other information
Properties 3,021,562 823,513 4,995,246 8,840,321
At valuation 2,681,800 668,600 3,952,985 7,303,385
Classified as held for
disposal 391,517 168,889 1,118,310 1,678,716
At cost - - - -
Straight line rental
adjustment (51,755) (13,976) (76,049) (141,780)
DISTRIBUTION DECLARATION AND IMPORTANT DATES
Notice is hereby given of the declaration of distribution no. 29 in respect
of the income distribution period 1 January 2009 to 30 June 2009. The
distribution amounts to 14,45 cents per unit.
Last date to trade cum distribution Thursday, 17 September 2009
Units will trade ex-distribution Friday, 18 September 2009
Record date to participate in the distribution Friday, 25 September 2009
Payment of distribution Monday, 28 September 2009
Unit certificates may not be dematerialised or re-materialised between
Friday, 18 September and Friday, 25 September 2009 both days inclusive.
MARRIOTT PROPERTY SERVICES (PTY) LTD
(A wholly owned subsidiary of Old Mutual Investment Group Property
Investments (Pty) Limited)
SECRETARIES
20 August 2009
SA Corporate Real Estate Fund Managers Limited
Registered office
Mutual Park,
Jan Smuts Drive
5th Floor Pinelands
7405
PO Box 333
Mutual Park 7451
Tel: (021) 530 - 4500
Auditors
Deloitte & Touche
2 Pencarrow Crescent
Pencarrow Park
La Lucia Ridge Office Estate
La Lucia 4051
Auditors
Deloitte & Touche
2 Pencarrow Crescent
Pencarrow Park
La Lucia Ridge Office Estate
La Lucia 4051
Sponsor
Nedbank Capital
A division of Nedbank
Limited
135 Rivonia Road
Sandton
2196
Directors: BM Kodisang (Chairman), LB van Niekerk (Managing)*,Z Adams*,
KJ Forbes, IM Groves, SH Mia, IN Mkhari, LM Mojela, MM Ngcobo, KM Roman,
ES Seedat, WJ Swain, WC van der Vent, CS Young
*Executive
Alternates: A Beattie, N Corbishley, GP Dingaan, P Zagaretos
Date: 24/08/2009 07:05:02 Produced by the JSE SENS Department.
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