| Tue 31 May 2011, 17:14 | | REB - Rebosis Properties Limited - Unaudited results for the six months ended 28 |
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REB
REB
REB - Rebosis Properties Limited - Unaudited results for the six months ended 28
February 2011
REBOSIS PROPERTIES LIMITED
(formerly Business Venture Investments No. 1389 (Proprietary) Limited)
("Rebosis" or the "company")
Registration number 2010/003468/06
JSE code: REB ISIN: ZAE 000156147
Unaudited results for the six months ended 28 February 2011
Current and more meaningful information is as contained in the forecast.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months Forecast Forecast
ended 17 May to year ending
28 February 31 August 31 August
2011 # 2011 ## 2012 ##
(three months
trading
period)
R`000 R`000 R`000
REVENUE
Property portfolio 92 511 135 110 434 059
Contractual rental income 79 976 111 323 404 760
Straight line rental income 12 535 23 787 29 299
Facilities management income - 13 209 46 516
Sundry income 243 - -
Total revenue 92 754 148 319 480 575
Property expenses (18 676) (29 161) (107 227)
Administration and corporate (1 431) (5 693) (20 513)
costs
Net operating profit 72 647 113 465 352 835
Changes in fair values of 23 580 - -
properties and financial
instruments
Profit from operations 96 227 113 465 352 835
Finance charges (60 112) (39 336) (129 528)
Secured financial liabilities (54 281) (39 336) (129 528)
Unsecured financial liabilities (5 825) - -
Profit before debenture 36 115 74 129 223 307
interest
Debenture interest - (50 342) (194 008)
Profit before taxation 36 115 23 787 29 299
Taxation (11 867) (6 660) (8 204)
Profit for the period 24 248 17 127 21 095
Reconciliation of earnings,
headline earnings and
distributable earnings
Profit for the period 24 248 17 127 21 095
attributable to shareholders
Change in fair value of 10 780 - -
properties (net of deferred
taxation)
Change in fair value of 12 535 - -
properties
Deferred taxation (1 755) - -
Headline earnings attributable 35 028 17 127 21 095
to shareholders
Debenture interest - 50 342 194 008
Headline earnings attributable 35 028 67 469 215 103
to linked unitholders
Change in fair value of (26 003) - -
financial instruments (net of
deferred taxation)
Change in fair value of (36 115) - -
financial instruments
Deferred taxation 10 112 - -
Straight line rental income (9 025) (17 127) (21 095)
(net of deferred taxation)
Straight line rental income (12 535) (23 787) (29 299)
Deferred taxation 3 510 6 660 8 204
Distributable earnings - 50 342 194 008
Actual number of shares/linked 1 000 219 744 713 219 744 713
units in issue
Weighted number of 1 000 64 092 209 219 744 713
shares/linked units in issue
Earnings per share/linked unit 2 424 800 105,27 97,89
(cents)
Headline earnings per 3 502 800 105,27 97,89
share/linked unit (cents)
Distribution per linked unit - 22,91 88,29
(cents)
# Results for the period include trading for the three month period 1 December
2010 to 28 February 2011 only.
## As per the prelisting statement dated 19 April 2011
CONDENSED STATEMENT OF FINANCIAL POSITION
28 February
2011
R`000
ASSETS
Non-current assets 2 972 919
Investment property 2 857 500
Fair value of property portfolio for accounting purposes 2 844 965
Straight line rental income accrual 12 535
Goodwill and intangibles 95 703
Financial assets 18 981
Property, plant and equipment 735
Current assets 9 718
Trade and other receivables 8 241
Cash and cash equivalents 1 477
Total assets 2 982 637
EQUITY AND LIABILITIES
Equity 24 249
Stated capital 1
Reserves 24 248
Liabilities 2 739 844
Secured financial liabilities 2 162 522
Unsecured financial liabilities 435 728
Interest rate swaps 34 024
Deferred taxation 107 570
Current liabilities 218 544
Secured financial liabilities 9 245
Trade and other payables 97 473
Future tenant installations 75 000
Bank overdraft 36 826
Total equity and liabilities 2 982 637
Net asset value per share (excluding deferred taxation) 13 181 900
(cents)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
Six months
ended
28 February
2011
R`000
Cash generated from operations 75 519
Net finance costs (60 112)
Net cash inflow from operating activities 15 407
Net cash outflow from investing activities (481 804)
Net cash inflow from financing activities 431 048
Net movement in cash and cash equivalents (35 349)
Cash and cash equivalents at the beginning of the period -
Cash and cash equivalents at the end of the period (35 349)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Six months
ended
28 February
2011
R`000
Balance at the beginning of the period -
Issue of shares 1
Profit for the period 24 248
Total share capital and reserves 24 249
COMMENTARY
Profile
Rebosis, the first black-managed and substantially black-held property fund,
successfully listed on the JSE Limited ("JSE") on 17 May 2011. On listing
Rebosis raised R1,66 billion in terms of a private placement which was
oversubscribed. Proceeds from the listing were utilised to acquire additional
properties and to restructure and reduce Rebosis` overall gearing levels.
Rebosis` portfolio currently consists of 60% shopping centres and 40% office
buildings (by value), located in Gauteng and the Eastern Cape. The retail
portfolio comprises three exceptional quality shopping malls delivering secure,
escalating income streams underpinned by strong anchor and national tenants. The
office portfolio consists of five buildings which are well located in nodes
attractive to government tenants; four in Pretoria and one in Braamfontein.
These are mainly let to the National Department of Public Works, under long
leases providing for escalations of 8% or more per annum. The office portfolio
represents a sovereign underpin to a substantial portion of the earnings and
shields it from private sector risks such as tenant insolvency and default.
Financial results
Pursuant to its listing, Rebosis issued a prelisting statement dated 19 April
2011, containing current financial information pertinent to shareholders as
required by JSE Listings Requirements. In particular, the prelisting statement
included a pro forma statement of financial position at 31 August 2010 and
forecast statements of comprehensive income for the period from the listing date
on 17 May 2011 to 31 August 2011 and for the full year ending 31 August 2012.
These forecast statements of comprehensive income have been reported on by the
reporting accountants PKF Jhb Inc., whose report has been included in the
prelisting statement.
The interim period reported on in these results is for the three month period
from 1 December 2010, the date on which Rebosis acquired the initial portfolio
of properties, to 28 February 2011. This interim period ended before Rebosis
listed. Rebosis` portfolio of assets, the gearing against the portfolio, the
asset management arrangements and the capital structure during this period were
all substantially different than as disclosed and reflected in the prelisting
statement. In the opinion of the directors, the results reported for the interim
period do not constitute meaningful information. For shareholders and investors,
more current and meaningful information is as contained in the forecasts. This
notwithstanding, JSE Listings Requirements require publication of these interim
results.
Post balance sheet event
Linked unitholders are advised that the transfer of the Victoria Mxenge building
was registered on 24 May 2011 and transfer of Bloed Street Mall is still in
process.
Directorate
Sisa Ngebulana was appointed as chief executive officer on 13 August 2010. Anna
Mokgokong was appointed as chairperson and Mike Rodel and Janys Finn were
appointed as chief operating officer and financial director respectively with
effect from 11 April 2011. Simon Fifield, Andile Mazwai, Ken Reynolds, Jaco
Odendaal and Sindiswa Zilwa were appointed as non-executive directors with
effect from 11 April 2011.
Basis of preparation
The results for the six months ended 28 February 2011 have not been reviewed or
audited by the company`s independent external auditors, PKF (Jhb) Inc. These
results have been prepared in accordance with International Financial Reporting
Standards, the AC 500 standards as issued by the Accounting Practices Board or
its successor, the JSE Listings Requirements and the requirements of the South
African Companies Act. This report has been prepared in terms of IAS 34 -
`Interim Financial Reporting`. No comparative financial information has been
presented as the company only commenced trading on 1 December 2010.
By order of the board
Rebosis Property Fund Limited
31 May 2011
Directors
ATM Mokgokong* (Chairperson)
SM Ngebulana (CEO)
SP Fifield*
JA Finn
AM Mazwai*
WJ Odendaal*
KL Reynolds*
MF Rodel
SV Zilwa*
* Non-executive
Independent
Registered office
3rd Floor, Palazzo Towers West
Montecasino Boulevard, Fourways, 2191
(PO Box 2972, Northriding, 2162)
Transfer secretaries
Computershare Investor Services (Proprietary) Limited
Company secretary
Probity Business Services (Proprietary) Limited
Sponsor
Java Capital
www.rebosis.co.za
Date: 31/05/2011 17:14:01 Produced by the JSE SENS Department.
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