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ACP
ACP
ACP - Acucap Properties Limited - Unaudited Condensed Interim Results for
the 6 months ended 30 September 2010
Acucap Properties Limited
Reg no 2001/021725/06
Share Code: ACP
ISIN: ZAE000037651
("Acucap" or "the fund" or "the company")
Unaudited Condensed Interim Results for the 6 months ended 30 September 2010
30 31 March 30
September 2010 September
2010 2009
Unaudited Audited Restated
R`000 R`000 R`000
Condensed consolidated
statement of financial
position
Assets
Property assets 6 271 805 5 841 064 5 285 227
Investment properties 5 729 547 5 379 866 4 918 966
Non-current receivable 112 045 112 284 115 951
Current receivable 28 627 24 005 19 363
Investment properties and 5 870 219 5 516 155 5 054 280
related receivables
Investment properties held for 100 752 50 000 -
sale and related receivables
Investment properties under 230 542 203 400 191 979
development
Owner-occupied property 10 106 10 344 10 640
Property development inventory 60 186 61 165 28 328
Other non-current assets 1 435 315 1 312 873 1 163 798
Loans in respect of unit 274 103 294 230 256 373
purchase scheme
Equipment 1 573 1 459 1 572
Listed investments 788 552 786 424 684 327
Interest in jointly controlled - 98 368 98 368
entities
Intangible assets and goodwill 320 832 82 786 94 749
Deferred tax assets 50 255 49 606 28 409
Other current assets 301 491 224 220 210 068
Trade and other receivables 246 194 186 308 181 662
Cash and cash equivalents 55 297 37 912 28 406
Total assets 8 008 611 7 378 157 6 659 093
Equity and liabilities
Shareholders` interest 2 568 479 2 489 553 2 112 614
Share capital and share 1 717 855 1 535 933 1 343 315
premium
Non-distributable reserve 1 092 668 1 155 931 921 419
Accumulated loss (242 044) (202 311) (152 120)
Non-current liabilities 4 238 999 4 040 431 3 797 759
Debentures 1 583 119 1 496 030 1 386 353
Financial liabilities 2 071 137 2 008 111 2 013 064
BEE instrument 94 736 76 547 50 694
Financial instruments 150 865 110 565 69 735
Deferred tax liabilities 339 142 349 178 277 913
Current liabilities 1 201 133 848 173 748 720
Trade and other payables 143 761 103 503 104 562
Financial liabilities 832 081 518 518 422 655
Tax payable 8 583 30 635 42 901
Debenture interest payable 216 708 195 517 178 602
Total equity and liabilities 8 008 611 7 378 157 6 659 093
Condensed consolidated statement of
comprehensive income
for the 6 months ended 30 September 2010
6 months year 6 months
ended ended ended
30 31 March 30
September 2010 September
2010 2009
Unaudited Audited Restated
R`000 R`000 R`000
Revenue 294 696 552 151 271 010
- Contractual 288 022 545 215 267 427
- Straight lining 6 674 6 936 3 583
Net operating expenses (20 423) (56 161) (27 684)
Loss on sale of properties (200) (1 281) (1 025)
Loss on sale of jointly (948) - -
controlled entity
Amortisation of intangible (12 371) (23 950) (11 957)
assets
Profit before fair value
adjustments,
interest and taxation 260 754 470 759 230 344
Fair value adjustment to (6 474) 216 648 593
investment properties
Fair value adjustment to BEE (18 189) (36 126) (10 274)
instrument
Fair value adjustment to (18 564) 5 701 1 562
government bonds
Profit before interest and 217 527 656 982 222 225
taxation
Interest income 53 023 107 912 44 257
Interest expense
- Debenture holders - interim (216 708) (178 602) (178 602)
- Debenture holders - final - (209 647) -
- Financial institutions and (108 938) (223 342) (110 314)
other
(Loss)/ profit before taxation (55 096) 153 303 (22 434)
Taxation (3 688) (48 142) 1 679
(Loss)/ profit for the period (58 784) 105 161 (20 755)
Other comprehensive (expense)/
income
Net change in fair value of 181 149 824 62 021
listed investments
Net change in fair value of (44 393) (10 558) 18 840
cash flow hedge recognised
directly in equity, net of
taxation
Other comprehensive (expense)/ (44 212) 139 266 80 861
income for the period, net of
income tax
Total comprehensive (expense)/ (102 996) 244 427 60 106
income for the period
Reconciliation of (loss)/
profit for the period to
headline loss
(Loss)/ profit for the period (58 784) 105 161 (20 755)
Fair value adjustment to 6 474 (216 648) (593)
investment properties
Loss on disposal of investment 200 1 281 1 025
properties
Tax effects - 51 394 953
Headline loss - shares (52 110) (58 812) (19 370)
Interest paid to debenture 216 708 388 249 178 602
holders
Headline earnings - linked 164 598 329 437 159 232
units
Cents Cents Cents
Basic and diluted (loss)/ (38.45) 73.39 (15.01)
earnings per share
Headline earnings per linked 107.65 229.91 114.74
unit
Interest Distribution per 136.75 259.26 128.70
linked unit
- Interim 136.75 128.70 128.70
- Final - 130.56 -
Condensed Consolidated statement of
changes in equity
for the 6 months ended 30 September 2010
Shares Share Share
issued capital Premium
Number R`000 R`000
Balance at 31 March 138 249 105 138 1 334 481
2009
Restatement of prior - - -
period due to change in
accounting policy
Restated balance at 31 138 249 105 138 1 334 481
March 2009
Total comprehensive
income/ (expense) for
the period
Loss for the period - - -
Other comprehensive
income/ (expense)
Net change in fair - - -
value of listed
investments
Net change in fair - - -
value of cash flow
hedge recognised
directly in equity
Total comprehensive - - -
income/ (expense) for
the period
Transactions with
owners, recorded
directly in equity
Issue of 525 000 shares 525 000 1 8 695
in September 2009
Transfer to non- - - -
distributable reserve
Total transactions with 525 000 1 8 695
owners
Balance at 30 September 138 774 105 139 1 343 176
2009
Total comprehensive
income for the period
Profit for the period - - -
Other comprehensive
income/ (expense)
Net change in fair - - -
value of listed
investments
Net change in fair - - -
value of cash flow
hedge recognised
directly in equity
Total comprehensive - - -
income for the period
Transactions with
owners, recorded
directly in equity
Issue of 9 698 649 9 698 649 10 169 065
shares in October 2009
Issue of 1 280 000 1 280 000 1 23 542
shares in November 2009
Transfer to non- - - -
distributable reserve
Total transactions with 10 978 649 11 192 607
owners
Balance at 31 March 149 752 754 150 1 535 783
2010
Total comprehensive
expense for the period
Loss for the period - - -
Other comprehensive
income/ (expense)
Net change in fair - - -
value of listed
investments
Net change in fair - - -
value of cash flow
hedge recognised
directly in equity
Total comprehensive - - -
expense for the period
Transactions with
owners, recorded
directly in equity
Issue of 8 717 627 8 717 627 9 181 913
shares in July 2010
Transfer to non- - - -
distributable reserve
Total transactions with 8 717 627 9 181 913
owners
Balance at 30 September 158 470 381 159 1 717 696
2010
Condensed Consolidated statement of
changes in equity
for the 6 months Non Accumulated Total
ended 30 September Distributable loss
2010 Reserve
R`000 R`000 R`000
Balance at 31 March 766 244 (83 903) 2 016 960
2009
Restatement of prior 26 852 - 26 852
period due to change
in accounting policy
Restated balance at 793 096 (83 903) 2 043 812
31 March 2009
Total comprehensive
income/ (expense) for
the period
Loss for the period - (20 755) (20 755)
Other comprehensive
income/ (expense)
Net change in fair 62 021 - 62 021
value of listed
investments
Net change in fair 18 840 - 18 840
value of cash flow
hedge recognised
directly in equity
Total comprehensive 80 861 (20 755) 60 106
income/ (expense) for
the period
Transactions with
owners, recorded
directly in equity
Issue of 525 000 - - 8 696
shares in September
2009
Transfer to non- 47 462 (47 462) -
distributable reserve
Total transactions 47 462 (47 462) 8 696
with owners
Balance at 30 921 419 (152 120) 2 112 614
September 2009
Total comprehensive
income for the period
Profit for the period - 125 916 125 916
Other comprehensive
income/ (expense)
Net change in fair 87 803 - 87 803
value of listed
investments
Net change in fair (29 398) - (29 398)
value of cash flow
hedge recognised
directly in equity
Total comprehensive 58 405 125 916 184 321
income for the period
Transactions with
owners, recorded
directly in equity
Issue of 9 698 649 - - 169 075
shares in October
2009
Issue of 1 280 000 - - 23 543
shares in November
2009
Transfer to non- 176 107 (176 107) -
distributable reserve
Total transactions 176 107 (176 107) 192 618
with owners
Balance at 31 March 1 155 931 (202 311) 2 489 553
2010
Total comprehensive
expense for the
period
Loss for the period - (58 784) (58 784)
Other comprehensive
income/ (expense)
Net change in fair 181 - 181
value of listed
investments
Net change in fair (44 393) - (44 393)
value of cash flow
hedge recognised
directly in equity
Total comprehensive (44 212) (58 784) (102 996)
expense for the
period
Transactions with
owners, recorded
directly in equity
Issue of 8 717 627 - - 181 922
shares in July 2010
Transfer to non- (19 051) 19 051 -
distributable reserve
Total transactions (19 051) 19 051 181 922
with owners
Balance at 30 1 092 668 (242 044) 2 568 479
September 2010
Condensed Cash flow statement
for the 6 months ended 30 September
2010
6 months year 6 months
ended ended ended
30 31 March 30
September 2010 September
2010 2009
R`000 R`000 R`000
Cash flows from operating
activities
Cash generated by 250 209 426 097 181 385
operations
Changes in property 979 6 863 1 700
development inventory
Income tax paid (24 058) (18 172) (3 291)
Interest received 53 023 107 912 44 257
Interest paid (325 646) (585 789) (280 029)
Net cash outflows from (45 493) (63 089) (55 978)
operating activities
Cash (outflows)/ inflows (569 972) (299 584) 81 143
from investing activities
Cash inflows/ (outflows) 632 850 378 380 (18 964)
from financing activities
Net cash inflows for the 17 385 15 707 6 201
period
Cash and cash equivalents 37 912 22 205 22 205
at beginning of period
Cash and cash equivalents 55 297 37 912 28 406
at end of period
Condensed Segmental results
for the 6 months ended 30 September 2010
6 months 6 months
ended ended
30 30
September September
2010 2009
R`000 R`000
Retail
Segment revenue (external 194 285 167 745
customers)
Net operating expenses (22 215) (20 389)
Fair value adjustment to (1 267) (1 951)
investment properties
Loss on disposal of - (160)
investment properties
Segmental results 170 803 145 245
Offices
Segment revenue (external 81 813 72 089
customers)
Net operating expenses (2 953) (2 515)
Fair value adjustment to (5 307) (446)
investment properties
Loss on disposal of (200) (865)
investment properties
Segmental results 73 353 68 263
Industrial
Segment revenue (external 6 953 6 774
customers)
Net operating expenses (809) (320)
Fair value adjustment to 100 2 990
investment properties
Segmental results 6 244 9 444
Property development
Segment revenue (external 11 645 24 402
customers)
Net operating expenses (7 077) (11 070)
Segmental results 4 568 13 332
Reconciliation to profit before interest and taxation for
the period in the income statement
Revenue 294 696 271 010
Allocated operating (33 054) (34 294)
expenses
Unallocated operating 12 631 6 610
expenses
Loss on disposal of (200) (1 025)
investment properties
Loss on sale of jointly (948) -
controlled entity
Amortisation of intangible (12 371) (11 957)
assets
Fair value adjustment to (6 474) 593
investment properties
Fair value adjustment to (18 564) 1 562
government bonds
Fair value adjustment to (18 189) (10 274)
BEE instrument
Profit before interest and 217 527 222 225
taxation
Basis of preparation
The interim condensed financial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) and IAS34, as well as the
requirements of the Companies Act in South Africa and the JSE Limited
Listings Requirements, and on a basis consistent with the company`s most
recent annual financial statements.
COMMENTARY
1. REVIEW OF RESULTS AND OPERATIONS
Acucap`s board is pleased to report a distribution of 136.75 cents per unit
(cpu) for the six months ended 30 September 2010, a growth of 6.25% over the
same six month period last year. Economic conditions were generally weak
over the reporting period, although the third quarter saw distinct signs of
improvement, with retail sales in particular showing a satisfactory recovery
from June through to the September reporting date. Retail inflation peaked
at 12.7% in November 2008, but has now receded to just 0.66%. With further
help from a strong rand and thus cheaper imports, the resulting lower prices
have stimulated improved sales. Consumers may also have been encouraged by
further reductions in borrowing costs over the period, with the expectation
of more to come. Sustained momentum in household spending, which accounts
for more than 60% of GDP, should reinforce the recovery of the South African
economy.
Retail
Reported tenant revenue across all Acucap`s retail assets grew by a healthy
8.69% in nominal terms for the six months to 30 September 2010 compared to
the same period last year. With retail inflation down to negligible levels,
this result points to meaningful real growth in sales. A noticeable trend
has been the strong recovery in discretionary spending, in particular
amongst durable goods discounters, and in both the homeware and electronics
segments.
The major development activity in Acucap`s retail portfolio has been the
R160m extension of Bayside Mall in the Tableview corridor. Due for
completion in April 2011, the extension includes a new Game store, the
introduction of Dischem into the centre, an entirely new banking hall, and
the right-sizing of a number of national retailers. Supermarket anchor
Checkers is due to undertake a complete store revamp to coincide with the
mall redevelopment. On completion, Bayside will comprise a comprehensive
retail offering of over 55,000m2.
Offices
In contrast, the performance of the office market has remained subdued,
although Acucap has largely been shielded from the effects of rising
vacancies due to its long lease expiry profile. During the period under
review, the vacancy in the Acucap office portfolio increased only marginally
from 4% to 4.4%, although subsequent to 30 September, new leases have been
concluded, resulting in the vacancy rate declining to 2.7%. Renewal rentals
reflected the generally difficult conditions in the office market, with
rentals generally remaining at existing levels on renewal.
Industrial
There was no significant leasing activity in either of Acucap`s industrial
joint ventures, although infrastructural development of both the N1 and
Montague Business Parks continued throughout the period.
Development
The contribution to profits from the Helderberg Village development has
continued to diminish as intended, with only 4 units sold in the current six
months, compared to 6 in the period to September 2009, and 9 in the same
period to September 2008. The few remaining units should be disposed of by
31 March 2011.
Sycom
Distributions received from Acucap`s investment in Sycom Property Fund were
flat at 77.18 cpu compared to 77.14 cpu in the six months to September 2009.
This disappointing result was principally due to the sharp increase in
Sycom`s office vacancies in the second half of the March 2010 financial
year, from 4.3% at the end of September 2009 to 11.1% at the end of the
current reporting period. This represents an additional 11,277m2 of office
vacancy.
A decline in the contribution from Sycom`s investment in the Stenham
European Shopping Centre Fund (`SESCF`) also affected Sycom`s distribution.
Dividends received from SESCF were down by 3.5% in Euro terms, and combined
with the strong Rand relative to the Euro, this resulted in an overall 15.5%
decline in income from Sycom`s investment in SESCF.
Like Acucap, however, Sycom`s retail portfolio showed a pleasing turnover
growth of 8.42%, and as the office cycle moves into the recovery phase,
distributions from Sycom can be expected to show meaningful growth.
Income from Sycom`s management company, Sycom Property Fund Managers (SPFM),
continued to show steady growth, with property management fees up by 9% over
the six months to September 2009, and comparative asset management fees
increasing by 27% over the same period as a result of the sustained higher
unit price.
Bad debts and impairments
Bad debts written off and tenant receivables impaired amounted to R562,000,
compared to R1.383m in the comparable prior period, reflecting a welcome
improvement after significant write-offs and impairments at the last year
end.
6 year to 6 6 months year to
months 31-Mar- months to 31-Mar-09
to 10 to 31-3- 30-9-09
30-9-10 10
Bad debts (562) (2 146) (763) (1 383) (743)
written off
Movement in 905 (1 352) (1 887) 535 (188)
provision for
arrears
Income 343 (3 498) (2 650) (848) (931)
Statement
movement
On the basis of individual assets and asset segments, Acucap`s net income is
attributable as follows:
% of Net % of
Contractual total property total
rental income
income
R 000`s R 000`s
Festival 49 627 18.0 44 142 17.6
Mall
Key West 29 051 10.5 27 914 11.2
Bayside 28 551 10.3 26 370 10.5
Other 85 789 31.0 72 377 28.9
retail
Offices 76 506 27.7 73 353 29.3
Industrial 6 853 2.5 6 244 2.5
Total 276 377 100.0 250 400 100.0
The table reflects a pleasing growth in the diversification of retail income
amongst a greater number of properties, with Acucap`s largest retail asset
now contributing only 17.6% of net property income.
2. SIMPLIFIED FINANCIAL INFORMATION
Simplified financial information is presented to eliminate the effects of
IFRS and accounting adjustments that do not form part of Acucap`s
distribution.
Simplified income statement for the six months ended 30
September 2010
6 months year to 31 6 months to
to 30 March 30
September September
2010 2010 2009
R`000 R`000 R`000
Revenue 276 377 506 070 243 025
Net operating expenses (31 211) (58 992) (28 681)
Profit before interest 245 166 447 078 214 344
and taxation
Income from investment 15 700 24 321 13 879
in Sycom Property Fund
Managers
Development profits 12 472 31 748 17 617
Interest received 6 811 14 604 7 117
Income from Listed 28 975 59 811 28 959
Investments
Interest received on 10 783 19 664 9 121
Unit Purchase Trust
Notional Interest 7 672 16 594 547
received on units issued
Debenture holders 0 (203 570) 0
interest paid - interim
Other interest paid (99 357) (203 735) (102 140)
Profit for the period 228 222 206 515 189 444
Distribution per unit 136.75 130.56
for six months(cents) 128.70
Simplified Balance Sheet at 30 September 2010
30-Sep-10 31-Mar-10 30-Sep-09
R`000 R`000 R`000
Assets
Property assets 6 110 867 5 729 899 5 256 899
Listed property 817 527 817 276 713 286
investments
Other non-current assets 646 763 526 449 479 471
Other current assets 381 934 298 003 250 355
Total assets 7 957 091 7 371 627 6 700 011
Equity and liabilities
Shareholder`s interest 4 646 400 4 457 649 3 903 379
Financial liabilities 2 667 475 2 342 893 2 251 983
Other non-current 263 833 231 892 209 165
liabilities
Current liabilities 379 383 339 193 335 484
Total equity and 7 957 091 7 371 627 6 700 011
liabilities
3. BORROWINGS
The company has fixed the interest rate on 61% (2009:73.8%) of its
facilities with unexpired terms up to 15 years. The weighted average rate
for interest rate swaps is 10.4%, and the weighted average term to maturity
is 7 years.
4. LEASE EXPIRIES
The forward lease expiry profile of the Acucap portfolio is detailed below,
categorized as to (1) major retail assets (Festival Mall, Key West, Bayside
Mall, Gardens Centre, The Bridge (28%)), (2) other retail assets, (3) office
and (4) industrial.
Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 thereafter
Major 6.1% 11.7% 7.2% 5.2% 8.7% 6.2%
retail
Other 2.3% 2.7% 5.7% 3.6% 4.2% 3.9%
Retail
Offices 1.9% 6.0% 5.7% 7.7% 3.7% 5.0%
Industrial 0.2% 0.0% 0.0% 0.1% 1.3% 0.9%
Total 10.5% 20.4% 18.6% 16.6% 17.9% 16.0%
The above profile reflects an evenly distributed pattern of lease expiries,
with only the 2012 financial year showing a higher percentage expiry,
principally due to upcoming renewals at Festival Mall.
5. RETAIL PORTFOLIO PERFORMANCE
As noted above, the retail portfolio showed a pleasing 8.69% growth in
turnover in the six months to 30 September 2010 compared to the same period
in the prior year. The table below shows turnover contribution within
Acucap`s retail portfolio, reported by retail segment. Food and apparel
comprise just over 64% of retail turnover, down from 67% for the six months
to March 2010, and the mass discount segment lifted its contribution
significantly from 6.7% to 8.1% as discretionary spending continued its
strong recovery.
Segment % of Turnover
Food Majors 39.50%
Apparel 24.90%
Home & Furniture 3.00%
Electronics & Music 3.80%
Mass Discounters 8.10%
Health & Beauty 9.50%
Food Service & Entertainment 6.50%
Other 4.70%
100.00%
The performance of Acucap`s major retail segments for the six months to 30
September 2010 and for the quarter then ended are shown in the chart below.
For the six months, the table shows a resurgent mass discount sector, with
turnover growth rates in the electronics, homeware and health & beauty
segments also registering strong gains. Food majors, comprising the
supermarket segment, had a flat six months from a growth perspective, partly
because of a relatively high base in 2009, and partly due to lower food
price inflation.
Retail segments: Turnover growth
Segment Quarter-on- 6 months to Sep
Quarter 09/10
Total Turnover 8.2% 8.7%
Food Majors 1.2% 2.8%
Apparel 8.3% 6.2%
Home 13.3% 13.4%
Electronics 17.5% 6.5%
Mass Discounters 17.5% 25.7%
Health & Beauty 17.3% 12.1%
Food Service 9.1% 10.1%
Acucap also monitors each tenant`s rent to turnover ratio on a monthly basis
for any signs of distress, typically indicated by rent to turnover ratios
exceeding segmental industry norms. The table below shows these ratios for
each of the seven major segments in Acucap`s retail portfolio, and it was
pleasing to see improvements in four of the seven categories, with only a
marginal decline in the food service and apparel segments. The ratio of rent
to turnover for food majors moved out from 2.4% to 2.6%, still leaving this
segment comfortably within the industry norm of 2.5% to 2.75%.
Segment Rent to Rent to Quarter-on-
turnover turnover Quarter
Ratio 2010 Ratio 2011 Change Sep
09/10
Food Majors 2.4% 2.6% 8.5%
Apparel 4.8% 4.9% 2.3%
Home 10.2% 8.9% -12.7%
Electronics 3.9% 3.6% -8.0%
Mass Discounters 5.4% 5.0% -8.2%
Health & Beauty 2.4% 2.2% -8.1%
Food Service 8.1% 8.2% 1.7%
6. RECONCILIATION OF LEASE EXPIRIES WITH NEW LEASES AND RENEWALS
The tables below provides a reconciliation of lease expiries with new leases
and re-lets / renewals over the six month period from 1 April 2010 to 30
September 2010:
Expiries and Average Average
terminations through rent escalation
(m2) at expiry rate at
(R/mSquared) expiry
Major Retail* 3 343 113.36 8.4%
Other retail 7 341 126.71 8.7%
Offices 3 805 96.58 9.0%
Industrial 516 50.70 10.0%
Total 35 005 113.41 8.5%
New leases Average Average
and renewals through rent escalation
(m2) for new for new
leases leases
(R/mSquared)
Major Retail* 25 784 115.96 8.2%
Other retail 10 122 117.58 8.5%
Offices 4 005 97.20 9.0%
Industrial 717 58.16 10.0%
Total 40 628 113.49 8.4%
*Major retail assets :Festival Mall, Key West, Gardens Centre, Bayside Mall
& The Bridge (28%)
Renewal escalation rates have not changed significantly across the whole
portfolio.
The following table places the six month pattern of expiries and renewals
within the context of an overall reconciliation of change in the gross
lettable area of the combined Acucap portfolio:
GLA at Expiries and New Net GLA at 30
31 terminations leases Area September
March and added 2010
2010 renewals
Total 433 620 (30 573) 31 934 14 763 449 744
- leased 414 900 (35 005) 40 628 14 290 434 813
- vacant 18 720 4 432 (8 694) 473 14 931
The vacancy rate remains low, as shown in the next table. Within the retail
segment, there are planned redevelopment vacancies at Bayside is in excess
of 1,000 mSquared. Approximately 2,561mSquared of the vacancy in `other
retail` consists of vacancies in Westville Mall and Howard Centre, where the
final leasing deals following the recent redevelopments are now being
concluded. Excluding the effects of such activities, the `major retail` and
`other retail` vacancies would reduce to 1.8% and 1.7% respectively. By
March 2011, the total vacancy is expected to reduce to approximately 2.5%.
SUMMARY OF PORTFOLIO GROSS LETTABLE AREA AND VACANCY
Total GLA Leased Vacant Vacancy
%
Major retail 198 176 193 487 4 689 2.4%
Other retail 116 118 111 636 4 482 3.9%
Offices 112 960 108 035 4 925 4.4%
Industrial 22 490 21 655 835 3.7%
TOTAL 449 744 434 813 14 931 3.3%
7. UNITHOLDERS
A table of Acucap`s major unit holders is set out below :
Acucap unitholders at 30 September 2010
Entities controlling > 5% of
issued units
30-9-2010 31-3-2010
Public Investment 13.5% 14.0%
Corporation
Coronation Fund Managers 11.1% 15.1%
Stanlib Asset Managers 11.0% 10.3%
Investec 10.7% 11.5%
Directors and employees 8.5% 9.5%
Nedbank Limited 6.2% 6.6%
Thesele Group 5.0% 5.3%
Other 34.0% 27.7%
Total 100.0% 100.0%
Number of units in issue 166 891 375 158 173 748
Number of unitholders 2 697 2 390
8. COST TO INCOME RATIO
Costs remained well-controlled as further scale benefits were derived from
the management of both the Acucap and Sycom portfolios. In spite of rapidly
escalating electricity and rates charges, the net cost to income ratio has
remained low, and the rate of operating cost recovery from tenants has been
maintained. Of course, this places pressure on tenants to absorb rental
increases over time, and this will ultimately dampen the growth prospects of
listed property funds.
Period Percentage
6 months to 30 Sept 11.3%
2010
Year to 31 March 2010 11.1%
Year to 31 March 2009 11.1%
Year to 31 March 2008 14.2%
Year to 31 March 2007 12.6%
Year to 31 March 2006 12.2%
9. PROSPECTS
Acucap has benefited from the good performance of its retail portfolio,
whilst at the same time, the fund was shielded from the worst effects of the
office downturn by its long lease expiry profile in that segment. Looking
ahead, the SA economy looks set to grow by between 3% and 3.5% over the next
year, and whilst this is encouraging, there are still risks to the recovery,
in particular the low rate of job creation. Until labour market imbalances
are addressed, the SA economy is unlikely to achieve its full growth
potential.
Office and retail rentals remain under pressure, while operating costs have
escalated significantly, electricity at an annualized 28.1% and rates at 17%
within the Acucap portfolio. Under these conditions, the board expects the
distribution growth for the full year to be slightly lower than the 6.25%
achieved at the interim date. The expected distribution has not been
reviewed or reported on by Acucap`s auditors.
10. PAYMENT OF DEBENTURE INTEREST
Notice is hereby given that interim distribution number 20 of 136.75 (one
hundred and thirty six comma seven five) cents per linked unit has been
approved in respect of the six month period ended 30 September 2010. The
last date to trade the units cum distribution is Friday, 3 December 2010 and
the record date will be Friday, 10 December 2010. The units will start
trading ex-distribution from Monday, 6 December 2010. Distributions will be
made to unit holders on Monday 13 December 2010.
Unit certificates may not be dematerialised or rematerialised between Monday
6 December and Friday 10 December 2010 both days inclusive.
On behalf of the Board
BS KANTOR PA THEODOSIOU
(Chairman) (Managing Director)
17 November 2010
Registered Office
Suite A11 Westlake Square
Westlake Drive
Westlake
CAPE TOWN
Transfer secretaries:
Computershare Investor Services (Pty) Limited
70 Marshall Street
JOHANNESBURG
http://www.acucap.co.za
info@acucap.co.za
Directors: Prof BS Kantor (Chairman), PA Theodosiou*# (Managing Director),
FM Berkeley, RC Frolich, CB Marlow*, MS Moloko, N Mandindi, JH Rens*, B
Stevens, NDC Whale
* Executive; # British
Date: 17/11/2010 08:49:01 Produced by the JSE SENS Department.
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