| Wed 18 Aug 2010, 17:44 | | EMI - Emira Property Fund - Reviewed financial results for the year ended 30 |
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EMI
EMI
EMI - Emira Property Fund - Reviewed financial results for the year ended 30
June 2010 and income distribution declaration
EMIRA PROPERTY FUND
(A property fund created under the Emira Property Scheme, registered in terms
of the Collective Investment Schemes Control Act)
Share code: EMI
ISIN: ZAE000050712
("Emira" or "the Fund")
www.emira.co.za
REVIEWED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2010
AND INCOME DISTRIBUTION DECLARATION
R527,2 million distributable income
+ 6,8% growth in distribution per PI
+ 1 133 cents per PI net asset value
+ 32,8% 12 month total return
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
Year ended Year ended
R`000 30 June 2010 30 June 2009
Revenue 1 162 179 1 082 688
Operating lease rental income and tenant 1 152 167 1 059 866
recoveries
Allowance for future rental escalations 10 012 22 822
Property expenses (391 807) (350 880)
Management expenses (36 171) (31 843)
Administration expenses (43 214) (39 023)
Depreciation (9 704) (11 198)
Operating profit 681 283 649 744
Net fair value adjustments 42 430 (83 511)
Net fair value gain/(deficit) on investment 39 661 (83 511)
properties
Change in fair value as a result of (10 012) (22 822)
straight-lining lease rentals
Change in fair value as a result of 5 329 (6 717)
amortising upfront lease costs
Change in fair value as a result of 44 344 (53 972)
property appreciation/(depreciation) in
value
Unrealised gain on listed property 2 769 -
investment
Profit before finance costs 723 713 566 233
Net finance costs (211 839) (307 774)
Finance income 5 484 11 902
Finance costs (217 323) (319 676)
Interest paid and amortised borrowing costs (143 219) (121 844)
Interest capitalised to the cost of 3 065 1 728
developments
Preference share dividends paid (13 351) (16 424)
Unrealised deficit on interest-rate swaps (63 818) (183 136)
Profit before income tax expense 511 874 258 459
Income tax expense 2 683 64 929
Deferred taxation 4 018 66 571
- Revaluation of investment properties 1 753 54 441
- Other timing differences including 2 265 12 130
allowance for future rental escalations
STC on preference share dividends paid (1 335) (1 642)
Profit for the year attributable to equity 514 557 323 388
holders
Total comprehensive income for the year 514 557 323 388
RECONCILIATION BETWEEN EARNINGS AND HEADLINE EARNINGS AND DISTRIBUTION
Reviewed Audited
Year ended Year ended
R`000 30 June 2010 30 June 2009
Profit for the year attributable to equity 514 557 323 388
holders
Adjusted for:
Net fair value(gain)/deficit on investment (39 661) 83 511
properties
Deferred taxation on revaluation of (1 753) (54 441)
investment properties
Headline earnings 473 143 352 458
Adjusted for:
Allowance for future rental escalations (10 012) (22 822)
Amortised upfront lease costs 5 329 (6 717)
Unrealised deficit on interest rate swaps 63 818 183 136
Unrealised gain on listed property (2 769) -
investment
Deferred taxation - other timing differences (2 265) (12 130)
Distribution payable to participatory 527 244 493 925
interest holders
Distribution per participatory interest
Interim (cents) 51,84 48,79
Final (cents) 56,24 52,46
Total (cents) 108,08 101,25
Number of PIs in issue at the end of the 487 827 654 487 827 654
year
Weighted average number of PIs in issue 487 827 654 491 194 770
Earnings per participatory interest (cents) 105,48 65,84
The calculation of earnings per
participatory interest is based on net
profit for the year of R514,6 million (2009:
R323,4 million), divided by the weighted
average number of participatory interests in
issue during the year of 487 827 654 (2009:
491 194 770).
Headline earnings per participatory interest 96,99 71,76
(cents)
The calculation of headline earnings per
participatory interest is based on net
profit for the year, adjusted for non-
trading items, of R473,1 million (2009:
R352,5 million), divided by the weighted
average number of participatory interests in
issue during the year of 487 827 654 (2009:
491 194 770).
CONDENSED STATEMENT OF FINANCIAL POSITION
at 30 June 2010
Reviewed Audited
R`000 30 June 30 June
2010 2009
Assets
Non-current assets 7 655 558 7 355 777
Investment properties 7 334 034 7 158 603
Allowance for future rental escalations 162 838 152 826
Unamortised upfront lease costs 39 019 44 348
Fair value of investment properties 7 535 891 7 355 777
Listed property investment 119 667 -
Current assets 103 526 95 233
Accounts receivable and prepayments 62 845 51 892
Derivative financial instruments - 6 817
Cash and cash equivalents 40 681 36 524
Non-current assets held for sale 347 039 362 300
Total assets 8 106 123 7 813 310
Equity and liabilities
Participatory interest holders` capital and 5 525 665 5 538 352
reserves
Non-current liabilities 2 033 746 1 819 417
Redeemable preference shares 200 000 200 000
Interest-bearing debt 1 591 663 1 373 316
Deferred taxation 242 083 246 101
Current liabilities 546 712 455 541
Accounts payable 215 357 199 627
Derivative financial instruments 57 001 -
Distribution payable to participatory interest 274 354 255 914
holders
Total equity and liabilities 8 106 123 7 813 310
CONDENSED STATEMENT OF CASH FLOWS
Reviewed Audited
Year ended Year ended
R`000 30 June 30 June
2010 2009
Cash generated by rental operations 691 140 664 501
Net finance costs (151 086) (126 366)
STC on preference share dividends paid (1 523) (1 228)
Distribution to participatory interest holders (508 804) (473 086)
Cash flows from operating activities 29 727 63 821
Acquisition of, and additions to, investment (139 337) (311 111)
properties and furniture and equipment
Proceeds on sale of investment properties and 12 189 21 029
furniture and equipment
Acquisition of investment in listed property (116 769) -
fund
Cash flows from investing activities (243 917) (290 082)
Repurchase of participatory interests - (52 151)
Increase in interest-bearing debt 218 347 246 111
Cash flows from financing activities 218 347 193 960
Net increase/(decrease) in cash and cash 4 157 (32 301)
equivalents
Cash and cash equivalents at the beginning of 36 524 68 825
the year
Cash and cash equivalents at the end of the 40 681 36 524
year
CONDENSED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2010
Revaluation
Participatory and other Retained
R`000 interest reserves earnings Total
Balance at 1 July 3 563 635 2 198 750 (1 345) 5 761 040
2008
Total - - 323 388 323 388
comprehensive
income for the
year
Distribution to - - (493 925) (493 925)
participatory
interest holders
Repurchase of (52 151) - - (52 151)
participatory
interests
Transfer to fair - (170 537) 170 537 -
value reserve
(net of deferred
taxation)
Balance at 30 3 511 484 2 028 213 (1 345) 5 538 352
June 2009
Total - - 514 557 514 557
comprehensive
income for the
year
Distribution to - - (527 244) (527 244)
participatory
interest holders
Transfer to fair - (12 687) 12 687 -
value reserve
(net of deferred
taxation)
Balance at 30 3 511 484 2 015 526 (1 345) 5 525 665
June 2010
RELATED PARTIES AND RELATED PARTY TRANSACTIONS
Momentum Group ("Momentum") is the major participatory interest holder. At 30
June 2010, Momentum owned 20,8% of the Fund`s participatory interests and the
Fund`s BEE partners - The Tiso Group, The Shalamuka Foundation, Avuka
Investments, The RMBP Broad Based Empowerment Trust and Mr B van der Ross -
held 12,5%. The remaining 66,7% were widely held.
The following transactions were carried out with related parties:
Reviewed Audited
Year ended Year ended
R`000 30 June 2010 30 June 2009
Strategic Real Estate Managers (Proprietary)
Limited
Expenditure comprising asset management fees 36 171 31 843
Relationship: Associated company of the
FirstRand Group
Rand Merchant Bank a division of FirstRand
Bank Limited
Long-term interest-bearing debt 1 099 475 884 475
Net finance cost in respect of long-term 93 617 72 526
interest-bearing debt
Cash on call 5 000 6 000
Cash reserve 2 000 2 000
Finance income on cash on call 1 572 5 467
Relationship: Associated company of the
FirstRand Group
Eris Property Group (Proprietary) Limited 58 773 176 806
Expenditure comprising: Property management 53 409 58 620
fee and letting commissions
Purchase consideration of TIS Corporate Park - 90 100
Development fees relating to refurbishments 5 364 28 086
and extensions
Relationship: Associated company of the FirstRand Group
The above transactions were carried out on commercial terms and conditions no
more favourable than those available in similar arm`s length dealings at
market-related rates.
SEGMENTAL INFORMATION
Admini-
strative
Sectoral Office Retail Industrial and Total
Corporate
Segments R`000 R`000 R`000 R`000 R`000
Revenue 510 188 463 773 188 218 - 1 162 179
Revenue 511 019 455 785 185 363 - 1 152 167
Allowance for (831) 7 988 2 855 - 10 012
future rental
escalations
Segmental
result
Operating 319 994 266 460 136 776 (41 947)* 681 283
profit
Investment 3 696 931 2 846 316 1 339 683 - 7 882 930
properties
Geographical
segments
Revenue
- Gauteng 381 718 306 847 142 276 - 830 841
- Western and 63 235 40 480 19 134 - 122 849
Eastern Cape
- KwaZulu- 44 347 76 512 26 808 - 147 667
Natal
- Free State 20 888 39 934 - - 60 822
510 188 463 773 188 218 - 1 162 179
Investment
properties
- Gauteng 2 794 049 1 906 016 1 036 783 - 5 736 848
- Western and 505 382 247 100 155 500 - 907 982
Eastern Cape
- KwaZulu- 283 100 454 100 147 400 - 884 600
Natal
- Free State 114 400 239 100 - - 353 500
3 696 931 2 846 316 1 339 683 - 7 882 930
* Includes management expenses of R36,171 million and general fund expenses of
R5,776 million.
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The condensed consolidated preliminary financial statements have been prepared
in accordance with International Financial Reporting Standards ("IFRS")
including IAS 34, and are in compliance with the Listings Requirements of the
JSE Limited. The accounting policies used in the preparation of these
financial statements are consistent with those used in the annual financial
statements for the year ended 30 June 2009.
COMMENTARY
The Board of directors of Strategic Real Estate Managers (Pty) Ltd ("STREM")
is pleased to announce a distribution of 108,08 cents per Emira participatory
interest (PI) for the twelve months to 30 June 2010. This represents good
growth in distributions of 6,8% on the previous comparable period and is
slightly better than the prospects statement in the Fund`s interim results
announcement released on 17 February 2010.
Emira PI holders enjoyed a very healthy total return of 32,8% during the
twelve months to 30 June 2010, comprising capital appreciation of 22,6% and an
income return of 10,2%, which represents the distributions actually paid out
during the period under review. This strong appreciation in Emira`s PI price
was ahead of the SA Listed Property Index, which appreciated by 18,6%. During
the period the listed property sector benefited from a recovery in global
economic growth, as well as an improved local inflation outlook, which
resulted in the yield on government long dated bonds declining. The percentage
of PIs in issue that traded in the twelve-month period equated to 33,8%.
The most recent highlight for Emira PI holders, albeit that it occurred after
the end of the financial year, was the announcement on 14 July 2010 that the
Manager and the Trustee have agreed to enter into supplemental deeds in order
to amend the Trust Deed. This will, if approved by PI holders in a ballot by
26 August 2010, firstly, extend the ambit of the Manager`s investment policy
so that the Fund can invest in a broader class of assets; secondly, increase
the limit of borrowing by the Emira Property Scheme from the current limit of
30% to 40% of the value of its underlying assets; and thirdly, amend the
existing service charge arrangement from a monthly charge based on enterprise
value to a monthly charge equal to the actual operating costs incurred by the
Manager in administering the Fund and the once-off cancellation payment of
R197,4 million to the Manager.
The STREM Board believes that the proposed amendments are extremely positive
for Emira PI holders and recommends that they vote in favour of the proposed
amendments in the ballot form that was distributed to PI holders at the date
of the announcement. With respect to the amendment of the service charge
payable to the Manager, after being appointed as an independent adviser by the
Board to consider the terms of the proposed service charge amendment, KPMG has
advised the Board that it is of the opinion that the terms and conditions are
fair and reasonable to PI holders.
Another highlight during the period was the acquisition of 10,25 million
stapled securities in Growthpoint Properties Australia (GOZ) for a total
consideration of A$17,97 million (R116,8 million) - representing 6,4% of the
stapled securities in issue - in May 2010. The investment represents Emira`s
first investment in an offshore jurisdiction and was motivated by the
opportunity to acquire a small, passive stake in a high quality listed
Australian REIT, backed by extremely secure, long-term leases with blue-chip
tenants at a yield higher than that which is achievable by buying South
African commercial property. The transaction will be earnings enhancing from
the date of purchase and Emira looks forward to a prosperous relationship with
GOZ.
Management continues to improve the quality of the Emira portfolio through the
acquisition of new properties, the refurbishment of existing assets, as well
as the disposal of those properties deemed to be non-core. Activity in the
portfolio comprises the following:
- Five small, earnings enhancing projects totalling R20,0 million were
concluded during the period, which consisted of extensions for existing blue-
chip and long-standing tenants at Southern Centre, Wonderpark Shopping Centre,
Ngwavuma Shopping Centre, One Highveld and the creation of additional parking
at Tuinhof in Centurion;
- A further seven projects worth approximately R161,4 million are still
underway, which include (i) the refurbishment and extension of Randridge Mall
and the introduction of additional national tenants at the centre (R126,2
million) (ii) the refurbishment of Rigel Office Park after the previous tenant
vacated the property (R14,7 million) (iii) the general upgrade of Wesbank
House in the Cape Town CBD in order to capitalise on higher rentals (R11
million), and (iv) extension to Market Square Shopping Centre in Plettenberg
Bay to accommodate extensions for Woolworths (R4,0 million);
- Two Board approved projects comprising the complete demolition and
reconstruction of 15,600 m2 of prime office space at Podium House in Menlyn
(R255,6 million) and the refurbishment of 6,745 m2 of office space at FNB
Heerengracht (R36,2 million) require a level of pre-letting in order to
initiate construction, which has not occurred to-date. Marketing of the space
continues and, although letting has been slower than expected, management is
confident that given the buildings` exceptional locations and attractive
rental levels, occupancies will be secured;
- In June 2010, Emira, in partnership with the Eris Property Group, agreed to
purchase a 50% undivided share in a 12,500m2, multi-tenanted office building
located at 80 Strand Street, Cape Town for R62m. The property comprises
several ground floor retail units, with ten floors of offices above and, when
compared to similar Cape Town CBD commercial buildings, has a high parking
ratio of 3.0 bays per 100m2. The anticipated yield on transfer is expected to
be 10.4%.
- The disposal of non-core buildings continued during the period, with three
sectionalised units at Georgian Place being transferred out of the Fund as
well as Rinaldo Park, a small industrial unit located in KwaZulu-Natal. The
sale of four buildings - Nampak, Howick Gardens,
QD House and Standard Bank, Glenwood - are all unconditional, but final
transfer has been stalled due to delays in receiving rates clearance
certificates. A total of nine other non-core properties remain on the disposal
list;
RESULTS The first half of the financial year proved to be tough, in line with
the poor South African economic conditions, with vacancies increasing and
rentals under pressure. In the six months to 30 June 2010 the market improved,
as letting took place and vacancies stabilised as a result. With a substantial
portion of Emira`s portfolio on long term, escalating leases, property income
continued to grow during the period under review, while costs were tightly
managed.
Excluding the straight-line adjustments from future rental escalations,
revenue rose by 8,7% over the comparable period. This was the result of
organic growth in income from the existing portfolio, the inclusion of the
acquired property from the effective date, as well as the conclusion of
several capital projects in the previous financial year which contributed for
the full period under review.
Although tenant arrears are still relatively high, the actual bad debts charge
for the period declined, which, when combined with lower leasing fees and good
management of contractual escalations resulted in property expenses, when
adjusted for amortised upfront lease costs, rising by 8,1% year-on-year. Net
income from properties was 9,0% higher.
The substantially higher PI price, particularly in the latter part of the
period under review, resulted in asset management expenses rising by 13,6%,
while administration expenses increased by 10,7%. Net interest costs excluding
unrealised losses on interest rate swaps rose by 18,3%. This was the result of
increased levels of gearing in the Fund, which was partially offset by lower
average debt costs.
Net asset value declined marginally (-0,2%) in the twelve months from 1135
cents (1186 cents excluding the deferred tax provision) to 1 133 cents (1182
cents), largely as a result of a reduction in the fair value of derivative
financial instruments of R63,8m. This is, in effect, a mark-to-market
accounting entry and is not a liability to Emira. This adjustment reflects
the variance between the interest rates payable in terms of the interest rate
swaps entered into by Emira and prevailing market interest rates. It has no
impact on the distribution payable by the Fund.
DISTRIBUTION STATEMENT for the year ended 30 June 2010
R`000 2010 2009 % change
Operating lease rental income 1 152 167 1 059 866 8,7
and tenant recoveries excluding
straight-lining of leases
Property expenses excluding
amortised upfront
lease costs (386 478) (357 597) 8,1
Net property income 765 689 702 269 9,0
Asset management expenses (36 171) (31 843) 13,6
Administration expenses (43 214) (39 023) 10,7
Depreciation (9 704) (11 198) (13,3)
Net interest cost (149 356) (126 280) 18,3
Interest paid and amortised (143 219) (121 844) 17,5
borrowing costs
Interest capitalised to the cost 3 065 1 728 77,4
of developments
Preference share dividends paid (13 351) (16 424) (18,7)
STC on preference share (1 335) (1 642) (18,7)
dividends paid
Investment income 5 484 11 902 (53,9)
Distribution payable to 527 244 493 925
participatory interest holders
Number of units in issue 487 827 654 487 827 654
Distribution per participatory 108,08 101,25 6,8
interest (cents)
DIRECTORATE Bryan Kent, an independent non-executive director of STREM since
April 2007, was appointed as Lead Independent Director on 20 May 2010.
On 24 June 2010, Vusi Mahlangu was appointed to the board of STREM as an
independent non-executive director. Vusi qualified as a chemical engineer at
UCT and has also been awarded an MBA from Harvard. He has extensive
experience in structured finance and investment banking, as well as mezzanine
funding and currently manages his own investment company.
PROSPECTS Since the beginning of 2010, conditions in the commercial property
market have undoubtedly improved, in line with general global and local
economic recovery, however the pace of the economic recovery appears to be
slower than most economists` expectations. It is anticipated that the gradual
recovery in the commercial property market will continue in the coming
financial year, with vacancies expected to decline moderately and rentals
recovering thereafter.
The level of growth in distributions from the Fund in the coming year is
expected to be good and potentially enhanced by the proposed service charge
amendment mentioned above (the STREM transaction). The forecast financial
information on which this statement has been based has not been reviewed or
reported on by the Fund`s auditors.
INDEPENDENT REVIEW The financial information has been reviewed by
PricewaterhouseCoopers Inc., whose unqualified review conclusion is available
for inspection at Emira`s registered address. The distribution statement was
not reviewed.
INCOME DISTRIBUTION DECLARATION Notice is hereby given that a final cash
distribution of 56,24 cents (2009: 52,46 cents) per participatory interest has
been declared payable to participatory interest holders, payable on 20
September 2010.
Last day to trade cum distribution Friday, 10 September 2010
Participatory interests trade ex Monday, 13 September 2010
distribution
Record date Friday, 17 September 2010
Payment date Monday, 20 September 2010
PI certificates may not be dematerialised or rematerialised between Monday, 13
September 2010 and Friday 17 September 2010, both days inclusive.
NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the seventh
annual general meeting of PI holders of Emira Property Fund will be held at
14:00 on 16 November 2010, at 3 Gwen Lane, Sandton, to transact the business
as stated in the annual general meeting notice forming part of the annual
financial statements.
By order of the STREM board
Martin Harris Ben van der Ross James Templeton
Company Secretary Chairman Chief Executive Officer
Sandton - 17 August 2010
ACQUISITIONS
Property purchased and transferred to Emira during the twelve months to June
2010
Property Sector Location GLA
(mSquared)
Taylor Blinds Industrial Montague Gardens, Cape Town 7 614
Purchase Forward
price yield
Property (Rm) (%) Effective date Tenant
Taylor Blinds 36,0 10,78 4 September 2009 Taylor Blinds
Taylor Blinds is a modern, well located warehouse let to Taylor Blinds on a
long-term lease until September 2013. The purchase was earnings enhancing to
Emira and reflected a substantial discount to replacement cost on a R/m2
basis.
Property purchased but not yet transferred to Emira
Property Sector Location GLA
(mSquared)
80 Strand Street Office Cape Town, CBD 12 500
(50% undivided
share)
Purchase Forward
price yield
Property (Rm) (%) Effective date Tenants
80 Strand 62,0 10,4 Transfer pending DeVries Inc,
Street (50% CK
undivided Friedlander,
share) Medway
Holdings
DISPOSALS
In accordance with the strategy of the Fund, certain properties that are
underperforming or pose excessive risk to the Fund are earmarked and disposed
of.
Properties transferred out of Emira during the twelve months to June 2010
Property Sector Location GLA
(mSquared)
Sections 9, 16 and 19 Office Kelvin, Gauteng 1 578
Georgian Place
Rinaldo Park Industrial Redhill Industrial 1 650
Park, Durban
Valuation
June `09 Sale price Exit yield
Property (Rm) (Rm) (%) Effective date
Sections 9, 16 and 5,6 6,6 3,9 15 July 2009,
19
Georgian Place 28 July 2009 and
4 November 2009
Rinaldo Park 4,8 6,0 9,8 10 June 2010
Properties sold, not yet transferred out of Emira at June 2010
Property Sector Location GLA
(mSquared)
Howick Gardens Office Midrand 3 075
Standard Bank Glenwood Retail Durban 368
Nampak Building Industrial Denver, Gauteng 24 880
QD House Industrial Kyalami, Gauteng 3 470
Valuation
June `09 Sale price Expected
Property (Rm) (Rm) Exit yield (%) effective date
Howick Gardens 20,0 20,7 9,4 August 2010
Standard Bank 4,5 5,0 11,6 August 2010
Glenwood
Nampak Building 18,0 20,5 8,5 September 2010
QD House 14,4 16,6 11,7 September 2010
VACANCIES
Vacancies increased from 7.5% in June 2009 to 9.2% by June 2010, largely as a
result of an increase in office vacancies from 13.6% to 16.2%, although
industrial vacancies also rose from 3.0% to 5.1%. Retail vacancies increased
fractionally from 5.0% to 5.3%. The rise in vacancies is reflective of the
tough market conditions experienced during the first half of the financial
year.
When compared to December 2009, the level of vacant space at June 2010
actually remained stable at 9.2%, with the industrial portfolio declining from
5.5% to 5.1% and retail vacancies also moving down from 5.9% to 5.3%. In
contrast, office vacancies increased from 15.3% to 16.2%.
On an adjusted basis, excluding projects either being or ready to be
refurbished, vacancies rose from 6.7% in June 2009 and 7.5% at December 2009
to 7.9% by June 2010.
Sector GLA Vacancy GLA Vacancy
(mSquared) (mSquared) (mSquared) (mSquared)
June `09 June `09 % June `10 June `10 %
Office 449 129 61 011 13,6 447 289 72 293 16,2
Retail 380 269 18 866 5,0 384 640 20 454 5,3
Industrial 380 839 11 360 3,0 386 061 19 746 5,1
Total 1 210 237 91 237 7,5 1 217 990 112 493 9,2
VALUATIONS
One-third of Emira`s portfolio is valued by independent valuers at the end of
every financial year, with the balance being valued by the directors.
Total portfolio movement
Sector June 2009 June 2010 Difference Difference
(R`000) R/m2 (R`000) R/m2 (%) (R`000)
Office 3 679 586 8 193 3 696 931 8 265 0,5 17 345
Retail 2 732 279 7 185 2 846 316 7 400 4,2 114 037
Industrial 1 306 212 3 430 1 339 683 3 470 2,6 33 471
Total 7 718 077 7 882 930 164 853
After capital expenditure and capitalised interest of R142,4 million,
disposals of R12,2 million and depreciation of R9,7 million, investment
properties increased in value by R164,8 million, implying a slight upward
revision in property values of R44,3 million.
DEBT
Emira has a relatively low level of gearing, with available debt facilities at
attractive margins which will enable the Fund to acquire good quality
properties with sustainable income streams. As at June 2010 Emira had a total
debt facility (including preference shares) available of R2,257 million, of
which R1,799 million had been accessed.
Emira has entered into various swap agreements as set out below. As a result,
94,2% of the Fund`s debt has been fixed for periods of between three and
thirteen years. As at 30 June 2010, the weighted average cost of debt equated
to 9,51%.
Rate (%) Term Amount (Rm) % of Debt
1. Debt - Swap 9,43 September 2011 110,0 6,1
- Extended 9,79 September 2021
2. Debt - Swap 9,78 April 2013 * 650,0 36,1
3. Debt - Swap 9,20 June 2013 500,0 27,8
- Extended (R200 9,80 June 2022
million)
- Extended (R200 10,23 June 2023
million)
- Extended (R100 9,83 June 2023
million)
4. Debt - Swap 10,25 October 2013 84,6 4,7
5. Debt - Swap 9,25 June 2014 60,0 3,3
6. Debt - Swap 9,66 December 2014 100,0 5,6
7. Debt - Swap 9,69 December 2016 60,0 3,4
8. Debt - Swap 10,11 April 2019 40,0 2,2
9. Debt - Swap 9,87 March 2020 90,0 5,0
1 694,6 94,2
10. Debt - Floating 8,15 January 2019 104,9 5,8
Total 9,51 1 799,5 100,0
Less: Costs (7,8)
capitalised not yet
amortised
Per balance sheet 1 791,7
*Existing debt swaps that were in place have been novated to RMB. These revert
back to Emira in April 2013 and continue until expiry, ranging between October
2013 and November 2018.
Fund Manager: Strategic Real Estate Managers (Pty) Limited
Directors of the Fund Manager: BJ van der Ross (Chairman)*,
JWA Templeton (Chief Executive Officer), MS Aitken*, BH Kent*,
V Mahlangu*, NE Makiwane*, W McCurrie*, MSB Neser*, WK Schultze,
NL Sowazi*, PJ Thurling
*Non-Executive Director
Registered address: 3 Gwen Lane, Sandton, 2146
Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
Transfer Secretaries: Computershare Investor Services (Pty) Limited, 70
Marshall Street, Johannesburg, 2001
Date: 18/08/2010 17:44:14 Produced by the JSE SENS Department.
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