| Thu 3 Jun 2010, 8:00 | | FVT - Fairvest Property Holdings - Unaudited condensed consolidated group |
|
FVT
FVT
FVT - Fairvest Property Holdings - Unaudited condensed consolidated group
financial results For the 12 months ended 31 March 2010
FAIRVEST PROPERTY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1998/005011/06)
("Fairvest" or "the Company" or "the Group")
Linked unit code: FVT
ISIN: ZAE000034658
Unaudited condensed consolidated group financial results
For the 12 months ended 31 March 2010
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited Audited Audited
31 March 31 March 31 March
2010 2009 2008
R`000 R`000 R`000
ASSETS
Non-current assets 89 542 89 685 78 843
Investment property 86 426 86 426 75 921
Equipment - 4 5
Operating lease asset 3 116 3 255 2 917
Non-current assets held for sale
Investment property held for sale - - 48 650
Current assets 48 660 47 156 11 254
Trade and other receivables 1 783 965 709
Cash and cash equivalents 46 877 46 191 10 545
Total assets 138 202 136 841 138 747
EQUITY AND LIABILITIES
Equity and reserves
Ordinary share capital 857 857 857
Retained income - - -
Non-current liabilities 124 815 125 594 131 588
Linked unit debenture capital 857 857 857
Linked unit debentures premium 122 817 123 801 116 952
Long-term liabilities - - 12 526
Deferred taxation 1 141 936 1 253
Current liabilities 12 530 10 390 6 302
Trade and other payables 10 844 9 522 2 367
Taxation 1 686 868 574
Current portion of long-term
liabilities - - 3 361
Total equity and liabilities 138 202 136 841 138 747
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Audited Audited
12 months 12 months 12 months
31 March 31 March 31 March
2010 2009 2008
R`000 R`000 R`000
Gross revenue 15 846 16 180 24 095
Rental income - contractual 15 547 15 707 23 940
- straight-line accrual 299 473 155
Trading profit 9 009 4 612 10 031
Net realised loss on sale of
investments - - (1 952)
Net realised loss on sale of
investment properties - - (2 026)
Fair value adjustment to
investment properties - 7 860 19 502
Fair value adjustment to
debentures (984) (6 849) (40 767)
Operating profit/(loss) 8 025 5 623 (15 212)
Interest received 3 395 3 739 1 202
Debenture interest (8 573) (7 715) -
Finance charges - (360) (3 902)
Profit/(loss) before taxation 2 847 1 287 (17 912)
Taxation (2 847) (1 287) 17 912
Comprehensive income
attributable to linked
unitholders - - -
Reconciliation between profit
attributable to linked
unitholders and headline
earnings
Shares are traded as part of
linked units
Profit attributable to linked
unitholders* - - -
Net realised loss on sale of
investments - 1 952
Net realised loss on sale of
investment properties - 2 026
Fair value adjustment to
investment properties - (8 013) (19 502)
Fair value adjustment to
debentures (984) 6 847 40 767
Headline (loss)/earnings* (984) (1 166) 25 243
Interest distribution per
linked unit (cents) 10.0 9.0 -
Basic earnings per linked
unit (cents)* - - -
Headline earnings per linked
unit (cents)* (1.1) (1.4) 29.4
Net asset value per linked
unit and net tangible asset
value per linked
unit (cents)** 145.2 146.4 138.4
Linked unit statistics
(excluding treasury shares)
Linked units in issue 85 795 988 85 795 988 85 795 988
Effective linked units in
issue 85 721 986 85 721 986 85 721 986
Weighted average number
of linked units 85 721 986 85 721 986 85 721 986
* Headline earnings have been presented in accordance with IAS 33. The linked
unit structure of the Group whereby every shareholder is a debenture holder,
coupled with the terms of the Debenture Trust Deed which states that 99.9% of
profits are attributable to debenture holders, results in the benefits of
improved trading which would be ordinarily attributable to shareholders being
expensed in the income statement as a fair value adjustment to debentures and
debenture interest. This results in no profit being attributable to ordinary
shareholders.
** Linked unit debentures are included in the net asset value and net tangible
asset value calculation.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Audited Audited
12 months 12 months 12 months
31 March 31 March 31 March
2010 2009 2008
R`000 R`000 R`000
Cash inflow from operating
activities 686 5 528 2 139
Cash inflow from investing
activities - 46 005 40 600
Cash outflow from financing
activities - (15 887) (33 863)
Net increase in cash and cash
equivalents 686 35 646 8 876
Cash and cash equivalents at
beginning of period 46 191 10 545 1 669
Cash and cash equivalents at
end of period 46 877 46 191 10 545
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Retained
capital income Total
R`000 R`000 R`000
Balance at 1 April 2007 857 - 857
Profit for the period - -
Balance at 31 March 2008 857 - 857
Profit for the period - -
Balance at 31 March 2009 857 - 857
Profit for the period - -
Balance at 31 March 2010 857 - 857
STATEMENT OF CHANGES IN LINKED UNIT DEBENTURES
Linked Linked
unit unit
debenture debenture
capital premium Total
R`000 R`000 R`000
Balance at 1 April 2007 857 76 185 77 042
Net fair value adjustment - 40 767 40 767
Balance at 31 March 2008 857 116 952 117 809
Net fair value adjustment - 6 849 6 849
Balance at 31 March 2009 857 123 801 124 658
Net fair value adjustment - (984) (984)
Balance at 31 March 2010 857 122 817 123 674
SEGMENTAL INFORMATION
Unaudited Audited Audited
12 months 12 months 12 months
31 March 31 March 31 March
2009 2008
Sectoral profile based on revenue
Commercial 100% 96% 81%
Residential 0% 4% 19%
Regional profile based on income
receivable
Eastern Cape 47% 43% 31%
Free State 5% 4% 3%
Gauteng 5% 17% 45%
KwaZulu-Natal 43% 36% 21%
Regional profile based on
lettable area
Eastern Cape 30% 30% 11%
Free State 10% 10% 3%
Gauteng 20% 20% 71%
KwaZulu-Natal 40% 40% 15%
Vacancy profile based on gross
lease area
Gross lease area in metres
squared as at end of period 25 351 25 850 73 127
Vacancy area in metres squared 6 806 8 275 25 548
Vacancy area as % gross lease
area 27% 32% 35%
Regional vacancy profile
Eastern Cape 12% 6% 2%
Free State 18% 15% 5%
Gauteng 53% 52% 81%
KwaZulu-Natal 17% 27% 12%
Basis of preparation and accounting policies
The accounting policies applied in the preparation of these condensed
consolidated interim results, which are based on reasonable judgements and
estimates, are in accordance with International Financial Reporting Standards
("IFRS") and are consistent with those applied in the annual financial
statements for the year ended 31 March 2009. These condensed financial
statements as set out in this report have been prepared in terms of IAS 34 -
Interim Financial Reporting, the Companies Act of South Africa, as amended, and
the Listings Requirements of the JSE Limited.
These condensed consolidated interim results for the twelve months ended
31 March 2010 have not been reviewed by the Group`s auditors and have been
prepared on the fair value and going concern bases.
COMMENTARY
Change of financial year-end
Fairvest and its subsidiaries changed their year-end from 31 March to 30 June,
therefore these Group financial results are considered a second interim report
for the twelve months ended 31 March 2010.
The audited results for the 15 months ended 30 June 2010 will be reported on in
September 2010.
Introduction
Fairvest is a property investment holding company with investments in commercial
and retail properties in South Africa. Its short-term investment strategy is to
create a property portfolio of significant critical mass through acquisition of
quality, high-yielding properties. Accordingly, investment opportunities are
being evaluated for acquisition on an ongoing basis.
The existing property portfolio was found to be badly maintained and neglected,
therefore a considerable amount of available funds have been earmarked for the
upkeep of the portfolio.
Review of results
The Group declared a distribution of 10 cents per linked unit for the 12 months
ending 31 March 2010. The net asset value per linked unit decreased by 0.8% from
146.4 cents to 145.2 cents.
Revenue declined by 2%. However, if revenue previously derived from Kempton City
and Broadway Nordic properties which were sold in the comparative period are
excluded, revenue improved by 8% to R15.8 million. Trading profits improved by
95% largely as a result of cost containment and streamlining of operations.
As the properties are valued at financial year-end, the property portfolio under
management remained unchanged at R86.4 million.
The balance sheet of the Group remains strong with cash and cash equivalents of
R46.9 million. Fairvest is well positioned to take advantage of opportunities
that may arise.
Interest distribution and dividends
Interest on debentures has been calculated in terms of the Debenture Trust Deed.
An interest distribution of 10 cents per debenture unit has been declared for
the period ended 31 March 2010 and is payable to linked unitholders registered
in the books of the Company at the close of business on Friday, 16 July 2010. No
dividend has been declared for the period in respect of the linked units.
Last date to trade linked units cum interest payment Friday, 9 July 2010
Linked units commence trading ex interest payment Monday, 12 July 2010
Record date Friday, 16 July 2010
Payment date Monday, 19 July 2010
Linked units may not be dematerialised or rematerialised between Monday,
12 July 2010 and Friday, 16 July 2010, both days inclusive.
Directorate
During the period under review TA Bell, KJ Peter, AB Platt, TP Botsis and
DA Johnston resigned as directors. JF du Toit has been appointed as Chairman,
BJ Kriel as CEO and Financial Director, M Epstein as non- executive director and
PJ van der Merwe as independent non-executive director.
Subsequent events
The directors of Fairvest are not aware of any material matter or circumstance
that has occurred between 31 March 2010 and the date of this report.
Appreciation
We extend our appreciation to our directors, management and staff for their
valued efforts, as well as our advisers and linked unitholders for their
continuing belief in and support of Fairvest.
For and on behalf of the board
JF du Toit BJ Kriel
Chairman Financial Director and Chief Executive Officer
3 June 2010
Directors:
Executive: BJ Kriel (Financial Director and Chief Executive Officer)
Non-executive: JF du Toit (Chairman), M Epstein, PJ van der Merwe #
# independent
Registered office:
1st Floor East Wing, The Palms, 145 Sir Lowry Road, Cape Town, 8001
PO Box 4083, Durbanville, 7551
Transfer secretaries:
Computershare Investor Services (Proprietary) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107
Auditor: BDO South Africa Incorporated
Sponsor: PSG Capital (Proprietary) Limited
Date: 03/06/2010 08:00:01 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
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.
