| Wed 4 May 2011, 16:04 | | MSP - MAS PLC - Abridged Audited Consolidated Results for the Year Ended 28 |
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MSP
MSP
MSP - MAS PLC - Abridged Audited Consolidated Results for the Year Ended 28
February 2011
MAS PLC
(Incorporated in the Isle of Man)
(Registration number 2893V)
(Registered as an external company in the Republic of South Africa)
(Registration number 2010/000338/10)
JSE share code: MSP
ISIN: IM00B4LFGH00
("the company" or "the group")
Abridged Audited Consolidated Results for the Year Ended 28 February 2011
Highlights
- NAV per share increased by 40%
- Final dividend of 2,10 euro cents per share declared
- All assets performing well
- Proposed capital raising in second quarter of 2011
Abridged consolidated statement of comprehensive income
Audited Audited
Year ended Year ended
(EUR`000) 28/02/11 28/02/10
Income
Rent received 1 711 291
Finance income 330 -
Exchange differences 276 82
Expenses
Investment adviser fees (235) (72)
Operating expenses (689) (826)
Fair value adjustments 1 930 (2 115)
Results from operating activities 3 322 (2 639)
Net interest expense (686) (49)
Profit / (loss) before taxation 2 636 (2 688)
Taxation (5) -
Profit / (loss) after taxation 2 631 (2 688)
Other comprehensive income
Currency translation adjustment 420 -
Total comprehensive income 3 051 (2 688)
Earnings / (loss) per share (cents) * 14.1 (78.6)
Headline earnings / (loss) per share (cents) ** 14.1 (78.6)
Weighted average number of ordinary
shares in issue (`000`s) 18 666 3 420
Distributable core income (`000`s) 813 -
*There are no potentially dilutive instruments in issue
**There are no reconciling items between earnings and headline earnings
Abridged consolidated statement of financial position
Audited Audited
As at As at
(EUR`000) 28/02/11 29/02/10
Investment property 30 202 24 773
Current assets 9 120 1 651
Total assets 39 322 26 424
Share capital 19 763 9 310
Retained earnings (451) (2 687)
Currency translation reserve 420 -
Shareholder equity 19 732 6 623
Long-term loans 17 689 16 953
Financial instruments 853 726
Current liabilities 1 049 2 121
Total liabilities 19 591 19 801
Total equity and liabilities 39 322 26 424
Net asset value per share (cents) 99.8 71.1
Number of shares in issue (`000`s) 19 763 9 310
Abridged consolidated statement of cash flows
Audited Audited
Year ended Year ended
(EUR`000) 28/02/11 29/02/10
Operating cash flows 1 568 (340)
Investing activities (3 337) (24 020)
Financing activities - debt and capital raised 7 409 25 868
Cash and equivalents at the beginning of the year 1 528 21
Currency translation differences (556) -
Cash and equivalents at the end of the year 6 612 1 528
Abridged consolidated statement of changes in equity
Currency
Audited Share Retained translation
(EUR`000) capital earnings reserve Total
28 February 2009 0.1 1 - 1
Issue of shares 9 310 - - 9 310
Loss for the year - (2 688) - (2 688)
28 February 2010 9 310 (2 687) - 6 623
Issue of shares 10 453 - - 10 453
Profit for the year - 2 631 - 2 631
Interim dividend paid - (396) - (396)
Currency translation adjustment - - 420 420
28 February 2011 19 763 (451) 420 19 732
Supplementary information
Reconciliation of profit after taxation to distributable core income
Year ended
(EUR`000) 28/02/11
Profit after taxation 2 631
Adjusted for
Fair value adjustments (1 930)
Unrealised exchange differences (239)
Fundraising and structure costs 268
731
Non-distributable interest expense 82
Distributable core income 813
Commentary
MAS plc is a real estate investment company with a portfolio of commercial
properties in Western Europe. It aims to provide investors with a sustainable
attractive euro denominated dividend. The current investment focus is in
Germany, Switzerland and the United Kingdom. The company has its primary listing
on the Euro MTF market of the Luxembourg Stock Exchange and a secondary listing
on the Alternative Exchange of the JSE.
Reporting currency
The company`s results are reported in euro.
Business review
The company owns eight properties: the Aldi portfolio of six properties, the
purpose-built Swiss headquarters of the logistics company DPD, and a student
residential development in Birmingham. Net asset value per share (NAV/share)
increased 40% over the previous year. This is driven by increases in valuations
across all properties, but in particular by the value uplift in the University
of Birmingham student property development, which reflects the quality of asset
selection and management by the Investment Adviser.
Aldi portfolio
The acquisition of the Aldi portfolio in Baden-Wurttemberg in Germany was
completed in December 2009. The properties are all performing well and in line
with expectations, generating rental income for the year of EUR 732 108. All of
the debt on the portfolio has been hedged for the full 20-year term of the
lease. The valuation of the portfolio at EUR 10,06 million was independently
performed by DTZ at 28 February 2011.
DPD property
The DPD property, a logistics and office centre, was acquired in January 2010
and is located in a logistics hub about 20 km outside the Zurich city centre in
Switzerland. This property has also performed in line with expectations,
generating rental income for the year of EUR 978 858. 70% of the debt on this
investment is hedged for the full 15-year term of the lease. The valuation of
the property at CHF 21,75 million was independently performed by Wuest & Partner
at 28 February 2011, and compares with an acquisition price of CHF 20,5 million
just over a year ago.
Birmingham student development
The development site has full planning permission for a 67-unit development
targeted at students at the University of Birmingham. The University has
committed itself to a three-year nomination agreement guaranteeing occupancy
levels of 97%. The development is progressing on schedule and construction is
expected to be completed in time for the autumn intake of students in September
2011, at which time the property will start generating income.
Savills independently valued the development at GBP 2,7 million.
Opportunistic loans
As part of its strategy to manage its resources optimally, MAS plc has also
granted fully-secured high-interest loans using excess cash that is earmarked
for investment. Interest on these loans closely matched the returns generated on
the property portfolio and significantly outperformed investment rates for cash
in the market, demonstrating the resourceful approach taken by the Investment
Adviser to create shareholder value. Interest on these loans totalled EUR 291
537 during the year.
Prospects
The tenants in our current portfolio continue to trade well. In addition, the
progress on the student residential development in Birmingham is encouraging and
in line with our projections.
Dividend
The directors have declared a final dividend for the year of 2,10 euro cents per
share. This brings the total distribution for the year to 4,15 euro cents per
share, which reflects a yield of 4,15% on the issue price of EUR 1 of the
capital raised. In line with its long-term planning, MAS plc expects to build on
this in the coming reporting periods as its portfolio matures further. Details
and timing of the final dividend will be published in due course.
Proposed capital raising
MAS plc proposes raising capital in the second quarter of 2011, subject to
compliance with regulatory requirements in South Africa, Luxembourg and the Isle
of Man. The capital will be deployed to make acquisitions of properties that
diversify and enhance the company`s portfolio and income generation and the
increase in issued shares will improve liquidity for shareholders. MAS plc has
received in-principle institutional capital commitments of R200 million.
Basis of preparation
These results have been prepared in accordance with International Financial
Reporting Standards (IFRS), IAS 34 - Interim Financial Reporting, and the
Listings Requirements of the JSE Limited.
Accounting policies
The financial statements on which these abridged results have been based, have
been audited by the group`s auditors, KPMG Audit LLC, and their unqualified
audit report is available on request from the company secretary and will be
released together with the full annual report. The accounting policies adopted
are consistent with those of the previous year.
4 May 2011
South African sponsor: Java Capital
Date: 04/05/2011 16:04:01 Produced by the JSE SENS Department.
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