| Fri 10 Jun 2011, 15:15 | | HPA/HPB - Hospitality - Revised Trading Statement |
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HPA HPB
HPA
HPA/HPB - Hospitality - Revised Trading Statement
HOSPITALITY PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/014211/06)
Share code for A-linked units: HPA
ISIN for A-linked units: ZAE000076790
Share code of B-linked units: HPB
ISIN for B-linked units: ZAE000076808
("Hospitality" or "the Company" or "the Fund")
REVISED TRADING STATEMENT
In terms of the Listings Requirements of the JSE Limited, property entities are
required to publish a trading statement as soon as they are reasonably certain
that the distribution for the next distribution period will differ by at least
15% from that of the previous corresponding period.
Hospitality included an early trading statement in its interim results
announcement, released on 17 February 2011, advising unitholders that according
to information available to directors at the time, "distributions per B-linked
unit for the 6 months ending 30 June 2011 were expected to be at least 34% down
on the previous corresponding period."
Unitholders are reminded that the Fund`s units in issue comprise A- and B-
linked units. The Fund`s distribution policy dictates that the A-linked units
have a preferential claim to distributions, which distributions are set to
escalate at 5% per annum up to the period ending 31 December 2011. Thereafter,
the distributions will escalate at the lesser of 5% or CPI. The B-linked units
receive the balance of the distributable earnings after deduction of the A-
linked unit distributions.
Trading conditions in the hotel industry remain challenging due to the
continuing effects of restrained demand and oversupply of available room stock
resulting in widespread discounting of rates. Substantial increases in overhead
costs arising mainly from administered prices further continue to erode margins.
In addition, the number of public holidays in April, and to a lesser extent May,
severely impacted on corporate and conferencing business during these months.
Given that the prior year comparative included the World Cup period in June
2010, and based on information currently available, the directors expect the
Fund`s total distributions for the six months to 30 June 2011 to be at least 25%
lower than the distributions in the previous year. While the A-linked unit
distribution remains unaffected, the B-linked unit distribution is consequently
likely to be at least 60% lower than the previous corresponding period.
This distribution forecast has not been reviewed and reported on by the
Company`s auditors and the Company`s results for the year ending 30 June 2011
are expected to be released on SENS on or about 17 August 2011.
Johannesburg
10 June 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 10/06/2011 15:15:01 Produced by the JSE SENS Department.
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