| Thu 15 Feb 2001, 0:00 | | Sycom - Audited Results |
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SYCOM PROPERTY FUND
Audited results and distribution declaration for the year ended 31 December 200
12 months to 12 months to
31/12/00 31/12/99
INCOME STATEMENT (R000) (R000)
Revenue 149 553 130 172
Rental income 138 967 118 907
Interest received 10 586 11 265
Expenses 48 520 51 343
Auditors' remuneration 419 364
Property expenses 44 016 48 209
Service charge 4 085 2 770
Net income for year
from ordinary activities 101 033 78 829
Exceptional items 91 768 41 581
Realised (deficit) on
disposal of investments
in fixed property (6 639) (9 565)
Increase in unrealised
surplus on revaluation of
investments in fixed
property companies 98 407 51 146
Net transfers to reserve (91 606) (42 173)
Transferred (to)
non-distributable reserve (91 768) (41 581)
Transferred from /
(to) distributable reserve 708 (592)
Available for distribution 101 741 78 237
Distribution 101 741 78 237
No. 28 of 44,15* cents
per unit paid September 1999 - 28 632
No. 29 of 47,32 cents
per unit paid March 2000 - 49 605
No. 30 of 46,96 cents
per unit paid September 2000 49 229 -
No. 31 of 50,09 cents per
units proposed March 2001 52 512 -
Units in issue 104 833 104 833
Earnings / Distribution
per unit (cents) 97,05 91,47
STATEMENT OF CHANGES IN
UNITHOLDERS' FUNDS
Capital 648 951 648 951
Non distributable reserve 177 847 86 079
Balance at beginning of period 86 079 44 498
Realised deficit on
disposal of investment
in fixed properties (6 639) (9 565)
Increase in unrealised
surplus on revaluation
of investment in fixed
property companies 98 407 51 146
Distributable reserve
- major maintenance 6 177 6 885
Balance at beginning of period 6 885 6 293
Transfer (to) / from
the income statement (708) 592
Total Unitholders' funds 832 975 741 915
BALANCE SHEET As at As at
31 Dec. 2000 30 Dec. 1999
Assets
Fixed property 790 703 693 122
Current assets 105 611 108 654
896 314 801 776
Unitholders' funds and liabilities
Capital and reserves 832 975 741 915
Current liabilities 63 339 59 861
896 314 801 776
* Based on 64 853 664 units in issue as at 30 June 1999
1. RESULTS
Sycom's net distributable income for the year ended 31 December 2000 amounted
to 97,05 cents per unit, an increase of 6,1% over the previous year's
distributions of 91,47 cents per unit and in line with management's forecast.
Compared to the pro forma 1999 figures for the combined Sycom and Newport Funds
which were merged on 1 July 1999, net property income has increased by 10,5%.
Apart from normal rental growth, this improvement is also attributable to
reinvestment of capital cash resources into new, high-yielding property
developments. The resultant lower cash balances coupled with lower interest
rates have caused pro forma year-on-year interest earnings to decline by 17,1%.
No further maintenance reserves were created during the year. Amounts written
back to the reserve in respect of properties sold totalled Rm0,99 and Rm0,71
was transferred from the reserve to cover certain major maintenance
expenditure, resulting in a reserve balance at 31 December 2000 of Rm6,18.
In line with management's policy of annual independent property valuations, the
portfolio was again revalued in December 2000. The current open market value of
Rm790,66 represents a surplus of Rm98,41 over the previous year's valuations
which has been transferred to the non-distributable reserve.
The net asset value of Sycom units amounts to 789 cents per unit. The closing
market price of the units at 31 December stood at 780 cents per unit,
representing a nominal discount of 1,1% to net asset value.
2. PROPERTY PORTFOLIO
During the year the following properties were sold:
Property Sector Location Sale price Book value Book value
Net (Rm) Current (Rm) Original (Rm)
155-5th
Street Offices Sandton 18,7 19,2 8,6
Nedbank
Square Offices/
retail Pretoria 4,0 3,2 15,2
Centex Offices Sandton 1,4 1,9 3,2
Carlon
Falco Offices Sandton 2,8 2,4 6,8
Harrowdene Land Sandton 15,4 15,0 11,5
42,3 41,7 45,3
At 31 December the Fund's capital balance stood at Rm39,87. Some Rm20,63 of
these funds are committed to various projects, which include residual payments
in respect of the following projects undertaken during the course of the year:
* Somerset Mall (Somerset West) - A Rm78,4, 16 000m2 extension to this centre
in which Sycom owns a 40% share. This extension, which was 100% let on opening
in August 2000 is expected to yield in excess of 16% in the first year.
* Harrowdene Office Park (Woodmead, Sandton) - The development of a 5th phase
of this office park comprising some 7 100m2 of rentable area at a capital cost
of Rm39,7. The buildings are due for completion in March 2001 and negotiations
are currently in progress for letting of the entire premises to a single tenant
At year-end the Fund's uncommitted capital balance amounted to Rm19,24.
Vacancy levels for the Fund in terms of rentable area stood at 8,2% at 31
December 2000, compared to 5,4% at the beginning of the year and 8,4% at
mid-year. The bulk of these vacancies are concentrated in four buildings
namely, Hurlingham Office Park (Sandton), Natech House (Sandton), Mount Royal
(Midrand) and Rank Xerox (Sunnyside, Pretoria). With the exception of
Hurlingham where the letting prospects are reasonable, the remaining properties
are all being marketed for sale.
3. PROSPECTS
Over the next twelve months, the Fund's exposure to further expiring leases is
relatively low at 10,2% of total rentable area. Approximately 57% of these
expiries (by rental income) comprise retail space which does not represent a
disproportionate risk. The balance, which is largely offices concentrated in
the Sandton and Pretoria areas is of concern, given the oversupply of space,
both current and under development in these areas.
Overall, growth in distributions for the year to 31 December 2001 is expected
to exceed the 6,1% achieved for the period under review.
4. DISTRIBUTION DECLARATION
Notice is hereby given of the declaration of distribution No.31 in respect of
the six months to 31 December 2000. The distribution amounts to 50,09 cents per
unit and is payable to unitholders registered as such in the books of the Fund
at the close of business on Friday, 2 March 2001. Where applicable,
distributions will be electronically transferred to unitholders' accounts on 16
March 2001. Distribution cheques post-dated to 16 March 2001 will be posted to
unitholders on or about 9 March 2001.
By order of the Board
NIB PROPERTY FUND MANAGERS LIMITED
(Registration number 1986/002756/06)
14 February 2001
Registered Office:
Ground Floor, Corovest House,
Grayston Ridge Office Park,
Cnr Grayston Drive and Katherine Street, Sandown, 2146
POBox 4795, Rivonia, 2128
Transfer Secretaries:
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg, 2001
POBox 1053, Johannesburg, 2000
