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OAS
OAS
OAS - Oasis Crescent Property Fund - Reviewed interim results for the six months
ended 30 September 2011
Oasis Crescent Property Fund
(Incorporated in the Republic of South Africa)
(Registration number 2003/012266/06)
Share code: OAS
ISIN: ZAE000074332
("Oasis" or "the Fund")
Reviewed interim results for the six months ended 30 September 2011
Condensed statement of comprehensive income
for the 6 months ended 30 September 2011
Reviewed Reviewed Audited
6 months 6 months 12 months
to 30 to 30 to 31
September September March
2011 2010 2011
R`000 R`000 R`000
Revenue 29 461 28 035 57 904
Rental and related income 26 004 24 422 50 749
Income from investments 4 346 3 687 6 802
Straight-lining of lease income (889) (74) 353
Expenses 11 589 9 674 20 448
Property expenses 9 925 8 110 17 414
Service charges 1 269 1 162 2 363
Other operating expenses 395 402 671
Net income from rentals and investments 17 872 18 361 37 456
Realised gain on sale of available-for- - - -
sale investments
Fair value adjustment to investment 889 74 8 397
properties excluding straight-lining of
lease income
Fair value adjustment to investment - - 8 750
properties
Straight-lining of lease income 889 74 (353)
Operating profit for the period 18 761 18 435 45 853
Net non-permissible investment income 334 127 208
Non-permissible investment income 334 131 214
received
Interest paid - (4) (6)
Net profit for the period 19 095 18 562 46 061
Other comprehensive income
Fair value gain on available-for-sale 3 212 3 542 13 072
financial assets
Total comprehensive income for the period 22 307 22 104 59 133
Basic earnings per unit including non- 48.72 49.5 121.8
permissible income (cents)
Reconciliation of distributable income
for the 6 months ended 30 September 2011
Rental and related income 26 004 24 422 50 749
Less: Property expenses (9 925) (8 110) (17 414)
Property operating income 16 079 16 312 33 335
Murabaha income - 190 -
Less: Murabaha expenses - - -
Murabaha operating income - 190 -
Investment income 4 680 3 628 6 567
Less: Investment expenses - (4) (6)
Investment operating income 4 680 3 624 6 561
Fair value adjustment on financial assets - -
at fair value through profit or loss 28
Service charges and other operating (1 664) (1 564) (3 034)
expenses
Distributable income including non- 19 123 18 562 36 862
permissible income
Non-permissible rental income (358) (658) (1 241)
Non-permissible investment income (306) (121) (199)
Distributable income excluding non- 18 459 17 783 35 422
permissible income
Distribution per unit including non- 48.8 49.5 97.4
permissible income
Interim distribution per unit (cents) 48.8 49.5 49.5
Final distribution per unit (cents) - - 47.9
Additional information:
Basic earnings per unit including non- 50.8 156.9
permissible income (cents)
Headline earnings and diluted headline 46.5 49.4 99.6
earnings per unit including non-
permissible income (cents)
Distribution per unit including non- 48.8 49.5 97.4
permissible income (cents)
Distribution per unit excluding non- 47.1 47.5 93.6
permissible income (cents)
Weighted average units in issue 39 191 861 37 462 790 37 832 250
Units in issue at the end of the period 39 592 393 37 462 790 38 448 017
Headline earnings and distribution income
Reconciliation
Net profit for the period 19 095 18 562 46 061
Adjusted for:
Fair value change to investment (889) (74) (8 397)
properties
Headline earnings 18 206 18 488 37 664
Less: Fair value adjustments on financial 28 (449)
assets at fair value through profit or
loss
Less: Straight-line-lease accrual 889 74 (353)
Distribution income including non- 19 123 18 562 36 862
permissible income
Non-permissible rental income (358) (658) (1 241)
Non-permissible investment income (306) (121) (199)
Distribution excluding non-permissible 18 459 17 783 35 422
income
Condensed statement of financial position
as at 30 September 2011
Reviewed Reviewed Audited
30 30 31
September September March
2011 2010 2011
R`000 R`000 R`000
Assets
Non-current assets 533 296 491 375 519 746
Investment properties 375 075 364 396 372 812
Property plant and equipment 24 36 30
Straight-line lease accrual 9 569 10 031 10 458
Available-for-sale financial assets 148 628 116 912 136 446
Current assets 41 571 32 367 35 548
Trade receivables 3 737 2 452 4 108
Other receivables 2 912 570 2 723
Trade receivables from related parties - 32 -
Held-for-trading investments 16 972 20 960 21 790
Cash and cash equivalents 17 950 8 353 6 927
Total assets 574 867 523 742 555 294
Unitholders` funds and liabilities
Unitholders` funds 549 634 498 020 529 192
Capital of the Fund 432 067 402 440 414 809
Retained income 421 - 449
Non-distributable reserve 117 331 108 507 117 331
Fair value loss on available-for-sale (185) (12 927) (3 397)
assets
Current liabilities 25 233 25 722 26 102
Trade payables 4 846 3 862 4 063
Accruals 177 225 206
Other payables 837 1 406 1 324
Trade payables to related parties 164 140 47
Unitholders for distribution 18 945 19 749 20 285
Non-permissible income available for 264 340 177
dispensation
Total unitholders` funds and liabilities 574 867 523 742 555 294
NAV (in cents per unit) 1 388 1 329 1 376
Condensed statement of changes in unitholders` funds
for the 6 months ended 30 September 2011
of the table -for-sale Retained
Capital Non- Available- Retained Total
of the distributable for-sale income
Fund reserve reserve
R`000 R`000 R`000 R`000 R`000
Balance at 1 402 487 108 581 (16 469) - 494 599
April 2010
Net profit for - - - 18 562 18 562
the period ended
30 September 2010
Other
Comprehensive
Income
Fair value gain - - 3 542 - 3 542
on available-for-
sale financial
assets
Total - - 3 542 18 562 22 104
Comprehensive
Income for the
period 30
September 2010
Issue of units - - - - -
Issue of units in - - - - -
lieu of
distribution
Transaction costs (47) - - - (47)
for issue of new
units
Distribution - - - - -
received in
advance
Transfer to non- - (74) - - (74)
distributable
reserve
Distribution to - - - (17 783) (17 783)
unitholders
Dispensation of - - - (779) (779)
non-permissible
income
Balance at 30 402 440 108 507 (12 927) - 498 020
September 2010
Net profit for 27 499 27 499
the period ended
31 March 2011
Other
Comprehensive
Income
Fair value gain 9 530 9 530
on available-for-
sale financial
assets
Transfer to
available-for-
sale reserve
Total - - 9 530 27 499 37 029
Comprehensive
Income for the
period 31 March
2011
Issue of units 13 094 13 094
for cash
Issue of units in
lieu of
distribution
Transaction costs (148) (148)
for issue of new
units
Transfer to non- 8 824 (8 750) 74
distributable
reserve
Distribution (577) 577
received in
advance
Distribution to (18 216) (18 216)
unitholders
Dispensation of (661) (661)
non-permissible
income
Balance at 1 414 809 117 331 (3 397) 449 529 192
April 2011
Net profit for 19 095 19 095
the period ended
30 September 2011
Other
Comprehensive
Income
Fair value gain 3 212 3 212
on available-for-
sale financial
assets
Total - - 3 212 19 095 22 307
Comprehensive
Income for the
period 30
September 2011
Issue of units
Issue of units in 17 588 17 588
lieu of
distribution
Transaction costs (141) (141)
for issue of new
units
Transfer to non-
distributable
reserve
Distribution (189) 189 -
received in
advance
Distribution to (18 647) (18 647)
unit holders
Dispensation of (665) (665)
non-permissible
income
Balance at 30 432 067 117 331 (185) 421 549 634
September 2011
Condensed statement of cash flows
for the 6 months ended 30 September 2011
Reviewed Reviewed Audited
6 months to 6 months to 12 months to
30 September 30 September 31 March
2011 2010 2011
R`000 R`000 R`000
Cash flows from operating
activities
Net profit for the period 19 095 18 562 46 061
Adjusted for:
Non-permissible investment (334) (131) (214)
income received
Interest paid - 4 6
Depreciation 6 6 12
Bad debt provision (27) (80) 94
Dividend income - Offshore
Unrealised gain on held-for-
trading financial assets
Straight-line-lease accrual 889 74 (353)
Realised gain on available-for- (120) - -
sale financial assets
Fair value adjustment on 28 - (449)
financial assets at fair value
through profit or loss
Fair value adjustment to (889) (74) (8 397)
investment properties excluding
straight-lining of lease income
18 648 18 361 36 760
(Increase)/decrease in current
assets
Trade receivables 398 1 662 (168)
Other receivables (189) 3 777 1 624
Trade receivables from related - (32) -
parties
Increase/(decrease) in current
liabilities
Trade payables 783 776 977
Accruals (29) (24) (43)
Other payables (487) (179) (261)
Trade payables to related 117 127 34
parties
Cash generated from operations 19 241 24 468 38 923
Interest paid - (4) (6)
Non-permissible investment 334 131 214
income received
Unitholders for distribution (2 399) (18 189) (22 754)
Non-permissible income (578) (749) (1 594)
dispensed
Net cash inflow from operating 16 598 5 657 14 783
activities
Cash flows from investing
activities
Acquisition of available-for- (8 970) (9 603) (19 607)
sale financial assets
Acquisition of financial assets (1 590) (20 960) (31 342)
at fair value through profit or
loss
Proceeds from sale of financial 6 500 10 001
assets at fair value through
profit or loss
Acquisition of investment (1 374) (88) (107)
properties
Net cash flow from investing (5 434) (30 651) (41 055)
activities
Cash flows from financing
activities
Transaction costs for issue of (141) (47) (195)
new units
Net cash flow from financing (141) (47) (195)
activities
Net increase /(decrease)in cash 11 023 (25 041) (26 467)
and cash equivalents
Cash and cash equivalents
At beginning of period 6 927 33 394 33 394
At end of period 17 950 8 353 6 927
Segmental information for the 6 months ended 30 September 2011
Retail Offices Indus- Invest- Corpo- Total
trial ments rate
R`000 R`000 R`000 R`000 R`000 R`000
Segment revenue
Property income
Rental and 10 411 4 228 11 365 - - 26 004
related income
Income from
investments
Dividend income - - - 3 050 - 3 050
offshore
Permissible - - - 1 204 - 1 204
investment
income domestic
Realised gain on 120 120
investment
income
Fair value - - - (28) - (28)
adjustment
financial assets
at fair value
through profit
or loss
10 411 4 228 11 365 4 346 - 30 350
Segment expense
Property 6 202 1 366 2 357 - - 9 925
expenses
Service charges - - - - 1 269 1 269
Other operating - - - - 395 395
expenses
6 202 1 366 2 357 - 1 664 11 589
Segment result
Operating 4 209 2 862 9 008 4 346 (1 664) 18 761
profit/(loss)
Net finance
income
Non-permissible - - - 334 - 334
investment
income
Net 4 209 2 862 9 008 4 680 (1 664) 19 095
profit/(loss)
before straight-
line-lease
income and fair
value change to
investment
properties
Straight-lining (135) (555) (199) - - (889)
of lease income
Add back 135 555 199 - - 889
straight lining
of lease income
Net 4 209 2 862 9 008 4 680 (1 664) 19 095
profit/(loss)
after straight-
line-lease
income and fair
value change to
investment
properties
Segment assets
Investment 158 567 63 454 153 054 - - 375 075
properties
Property, plant 24 - - - - 24
and equipment
Straight-line- 3 754 169 5 646 - - 9 569
lease accrual
Available-for- - - - 148 628 - 148 628
sale financial
assets
Trade 1 315 286 991 1 145 - 3 737
receivables
Other 366 90 36 - 2 420 2 912
receivables
Trade - - - - - -
receivables from
related parties
Held-for-trading - - - 16 972 - 16 972
investments
Cash and cash - - - 17 950 - 17 950
equivalents
164 026 63 999 159 727 184 695 2 420 574 867
Segment
liabilities
Trade payables 2 929 450 1 468 - - 4 847
Provisions - - - - 177 177
Other payables 448 8 167 - 214 837
Trade payables 195 2 101 - (134) 164
to related
parties
Unitholders for - - - - 18 945 18 945
distribution
Non-permissible - - - - 264 264
income available
for dispensation
3 572 460 1 735 - 19 466 25 233
Net segment 160 454 63 539 157 992 184 695 (17 046) 549 634
assets
Capital - - 63 - - 63
expenditure
Segmental information for the 6 months ended 30 September 2010
Retail Offices Indus- Invest- Corpo- Total
trial ments rate
R`000 R`000 R`000 R`000 R`000 R`000
Segment revenue
Property income
Rental and 10 962 3 856 9 604 - - 24 422
related income
Income from
investments
Dividend income - - - 3 037 - 3 037
offshore
Permissible - - - 387 - 387
investment
income domestic
Fair value - - - 263 - 263
adjustment
financial assets
at fair value
through profit
or loss
10 962 3 856 9 604 3 687 - 28 109
Segment expense
Property 5 568 1 100 1 442 - - 8 110
expenses
Service charges - - - - 1 162 1 162
Other operating - - - - 402 402
expenses
5 568 1 100 1 442 - 1 564 9 674
Segment result
Operating 5 394 2 756 8 162 3 687 (1 564) 18 435
profit/(loss)
Net finance
income
Non-permissible - - - 127 - 127
investment
income
Net 5 394 2 756 8 162 3 814 (1 564) 18 562
profit/(loss)
before straight-
line-lease
income and fair
value change to
investment
properties
Straight-lining (63) (281) 270 - - (74)
of lease income
Fair value 63 281 (270) - - 74
change to
investment
properties
Net 5 394 2 756 8 162 3 814 (1 564) 18 562
profit/(loss)
after straight-
line-lease
income and fair
value change to
investment
properties
Segment assets
Investment 165 752 56 703 141 941 - - 364 396
properties
Property, plant 36 - - - - 36
and equipment
Straight-line- 3 835 166 6 030 - - 10 031
lease accrual
Available-for- - - - 116 912 - 116 912
sale financial
assets
Trade 1 782 90 558 22 - 2 452
receivables
Other 357 13 187 - 13 570
receivables
Trade (17) - (13) - 62 32
receivables from
related parties
Held-for-trading - - - 20 960 - 20 960
investments
Cash and cash - - - 8 353 - 8 353
equivalents
171 745 56 972 148 703 146 247 75 523 742
Segment
liabilities
Trade payables 2 706 148 629 - 379 3 862
Provisions - - - - 225 225
Other payables 1 002 - - - 404 1 406
Trade payables 39 - 40 - 61 140
to related
parties
Unitholders for - - - - 19 749 19 749
distribution
Non-permissible - - - - 340 340
income available
for dispensation
3 747 148 669 - 21 158 25 722
Net segment 167 998 56 824 148 034 146 247 (21 083) 498 020
assets
Capital - 88 - - 88
expenditure
Segmental information for the year ended 31 March 2011
Retail Offices Indus- Invest- Corpo- Total
trial ments rate
R`000 R`000 R`000 R`000 R`000 R`000
Segment revenue
Property income
Rental and 21 996 8 766 19 987 - - 50 749
related income
Income from
investments
Dividend income - - - 4 978 - 4 978
offshore
Permissible - - - 1 375 - 1 375
investment
income domestic
Fair value - - - 449 - 449
adjustment
financial assets
at fair value
through profit
or loss
21 996 8 766 19 987 6 802 - 57 551
Segment expense
Property 11 638 2 651 3 125 - - 17 414
expenses
Service charges - - - - 2 363 2 363
Other operating - - - - 671 671
expenses
11 638 2 651 3 125 - 3 034 20 448
Segment result
Operating 10 358 6 115 16 862 6 802 (3 034) 37 103
profit/(loss)
Net finance
income
Net interest - - - 208 - 208
received
Net 10 358 6 115 16 862 7 010 (3 034) 37 311
profit/(loss)
before straight-
line-lease
income and fair
value change to
investment
properties
Straight-lining (47) 315 85 - - 353
of lease income
Fair value (12 863) 10 365 10 895 - - 8 397
change to
investment
properties
Net (2 552) 16 795 27 842 7 010 (3 034) 46 061
profit/(loss)
after straight-
line-lease
income and fair
value change to
investment
properties
Segment assets
Investment 140 651 79 306 152 855 - - 372 812
properties
Property, plant 30 - - - - 30
and equipment
Straight-line- 3 839 774 5 845 - - 10 458
lease accrual
Available-for- - - - 136 446 - 136 446
sale financial
assets
Trade 1 553 121 411 2 023 - 4 108
receivables
Other 261 291 148 - 2 023 2 723
receivables
Financial assets - - - 21 790 - 21 790
at fair value
through profit
or loss
Cash and cash - - - 6 927 - 6 927
equivalents
146 334 80 492 159 259 167 186 2 023 555 294
Segment
liabilities
Trade payables 2 509 429 687 - 438 4 063
Provisions - - - - 206 206
Other payables 675 - 400 - 249 1 324
Trade payables 10 - 38 - - 48
to related
parties
Unitholders for - - - - 20 285 20 285
distribution
Non-permissible - - - - 177
income available 177
for dispensation
3 194 429 1 125 - 21 355 26 103
Net segment 143 140 80 063 158 134 167 186 (19 332) 529 191
assets
Capital - - 107 - - 107
expenditure
Basis of preparation and accounting policies
The interim results of the Fund have been prepared in accordance with
International Financial Reporting Standards (IFRS), as well as the AC 500
Standards, International Accounting Standard 34 (IAS 34) and the requirements of
the Collective Investment Schemes Control Act of 2002. The non-permissible
income is dispensed to the Oasis Crescent Fund Trust which is a registered
public benefit organisation. The accounting policies are consistent with those
applied in the most recent annual financial statements of the Fund. The interim
financial statements have been prepared under that revised disclosure
requirements. The Fund`s investment manager follows the guidance of IAS 39 to
determine when an available-for-sale asset is impaired. The determination
requires significant judgment. In making this judgment, the Fund`s investment
manager evaluates, among other factors, the duration and extent to which the
fair value of an investment is less than cost and the financial health and
business outlook for the investee, including factors such as industry and sector
performance. The Fund`s external auditors, PricewaterhouseCoopers Inc., has
reviewed the financial information set out in this report. Their unqualified
review report is available for inspection at the Fund`s registered office. The
person who supervised the preparation of these interim results is A A Gogabori
CA(SA).
Related party transactions and balances
Identity of the related parties with whom material transactions have occurred
Oasis Crescent Property Fund Managers Limited ("OCPFM") is the management
company of the Fund in terms of the Collective Investment Schemes Control Act.
Oasis Group Holdings (Pty) Limited is a tenant at the Ridge@Shallcross.
As disclosed in the prospectus of Oasis Crescent Global Property Equity Fund a
management fee is charged for investing in the Oasis Crescent Global Property
Equity Fund by Oasis Global Management Company (Ireland) Limited, the manager of
the Fund.
There are common directors to Oasis Crescent Property Fund Managers Limited,
Oasis Group Holdings (Pty) Limited and Oasis Global Management Company (Ireland)
Limited. Transactions with related parties are executed on terms no less
favourable than those arranged with third parties.
Type of related party transactions
The Fund pays a service charge and a property management fee on a monthly basis
to Oasis Crescent Property Fund Managers Limited.
Related party transactions
6 months to 6 months to 12 months
30 September 30 September to 31 March
2011 2010 2011
Related party transactions R`000 R`000 R`000
Service charge paid to Oasis Crescent 1 269 1 162 2 363
Property Fund Managers Limited
Property management fees paid to 436 456 879
Oasis Crescent Property Fund Managers
Limited
Managers Limited
Rental, related income and deposit 168 155 320
paid by Oasis Group Holdings (Pty)
Limited at the Ridge@Shallcross
Related party balances
6 months to 6 months to As at
30 September 30 September 31 March
2011 2010 2011
Related party balance R`000 R`000 R`000
Trade (payables)/receivables to Oasis (110) (140)
Group Holding (Pty) Limited (47)
Trade (payables to)/receivables from (54) 32 -
Oasis Crescent Property Fund Managers
Limited
Trade deposit received from Oasis (64) (64) (64)
Group Holdings (Pty) Limited
Directors` commentary
Financial Highlights
6 months to 6 months to 12 months to
30 September 30 September 31 March 2011
2011 2010
Distribution per unit including non- 48.8 49.5 97.4
permissible income (cents)
Non-permissible rental per unit (0.9) (1.7) (3.3)
(cents)
Non-permissible investment income (0.8) (0.3) (0.5)
per unit (cents)
Distribution per unit excluding non- 47.1 47.5 93.6
permissible income (cents)
Distribution per unit excluding non- 47.1 46.8 93.6
permissible income (cents)*
Property portfolio valuation (Rm) 384.6 374.4 383.3
Investment in Offshore Listed 148.6 116.9 158.2
Properties (Rm)
Cash and cash equivalents (Rm) ** 34.9 29.3 28.7
Net asset value per unit (cents) 1 388 1 329 1 376
Listed market price (cents) 1 296 1 240 1 290
* In the financial year ended 31 March 2011, the Fund adopted a more
conservative policy with regards to distribution to unitholders. This has
resulted in the figure for September 2010 being revised 0.7 cents lower.
** Includes held-for-trading investments
Since its official listing date of 23 November 2005 the Fund has delivered an
annualised return of 11.1 percent to investors compared to an annualised
inflation of 6.6 percent over the same period.
Highlights
NAV growth of 4.4 percent year-on-year to 1388 cents
Stable dividend distribution in a challenging market
Strong balance sheet with zero debt
Increased footfall in retail properties of 7.4 percent year-on-year
Well diversified with 23 percent global exposure
Overview
The Fund has delivered solid and consistent performance over the years and this
has continued during the six months under review. NAV has improved by 4.4
percent year-on-year, reaching 1388 cents per unit (September 2010: 1329 cents)
on the back of underlying strong performance and global diversification.
Unitholders have realised a total return of 12.3 percent over the past year to
September 2011 compared to inflation of 5.2 percent over the same period. The
adjusted distribution per unit excluding non-permissible income increased by 0.6
percent from 46.8 cents in September 2010 to 47.1 cents in September 2011. While
the adjusted distribution growth has increased marginally, year-on-year, it was
better than budgeted, considering the significant increases in administered
prices, repositioning of the portfolio, the strong Rand and low yields on cash
equivalents.
The Fund is appropriately positioned for the current economic environment and is
well diversified in terms of sector, tenant mix, geography and currency. The
attractiveness of the global property market has resulted in the Fund increasing
its global exposure to 23 percent while maintaining a strong and ungeared
balance sheet.
The office and industrial sectors of the portfolio performed particularly well.
Space was fully let during the period under review and the rentals on these
sectors have shown good growth. In the retail sector we have historically
acquired prime properties at attractive valuations. Our focus in the last few
years has been on improving the mix of tenants within those properties and
bulking the properties appropriately. We are expanding the earning potential of
the Ridge by developing 2 additional spaces which are intended for national
tenants.
Overview of performance
The Fund has continued to deliver a competitive return relative to inflation.
Sep Sep Sep Sep Sep
2011 2010 2009 2008 2007
Oasis Crescent Property Fund 12.3 7.8 20.4 -2.1 14.5
Actual Return (%)
Inflation (%) *5.2 3.2 6.1 11.7 7.2
Notes:
Performance based on total return (capital and distribution including non-
permissible income).
* Inflation lagged by one month as September inflation not released by date of
publication.
Fund Portfolio
Segment profile based on net 30 September 30 September 31 March 2011
operating revenue* 2011 (%) 2010 (%) (%)
Industrial 44 41 42
Retail 20 26 26
Office 14 15 15
Listed properties and other 22 18 17
investments
100 100 100
*Net operating revenue represents gross rentals/investment income less directly
attributable costs.
Segment profile based on 30 September 30 September 31 March 2011
assets employed 2011 (%) 2010 (%) (%)
Industrial 29 28 29
Retail 27 32 26
Office 15 12 15
Listed properties and other 30 28 30
investments
100 100 100
Office Properties
The office component of the portfolio continues to be fully let, with new leases
at market related rentals and escalations. The Fund is also in the process of
acquiring a property in Cape Town, which is ideally positioned to enhance
revenue through its advertising ability and will be an attractive addition to
our existing portfolio.
Industrial Properties
The Fund has five industrial properties which were fully let during the period
under review. At the end of September, one tenant space was vacated when the
lease expired but we are confident that we will fill this vacancy soon due to
the attractive location of the property.
Retail Properties
At the Ridge@Shallcross the focus continues to be on the development of the
Centre to enhance standards and customer experience. We are currently in the
process of making improvements in order to accommodate two new national tenants
who will occupy a substantial space and expect significant progress with regards
to filling vacancies in the next six months.
Since acquisition, the Centre has experienced continuous improvements of
turnover levels, trading densities and footfall numbers. The footfall for the
month of September 2011 is up 7.4 percent, year-on-year, which is a substantial
increase in the current economic environment. We have had good growth in
turnover and our retail properties are well positioned.
Global investment
The Fund has 23 percent of its portfolio invested in global investments of
R135.2 million (September 2010: R116.9 million). The global listed property
sector has successfully reduced levels of debt, strengthened its financial
position and is currently offering attractive opportunities in high quality
property assets
Outlook
The South African property environment is anticipated to remain challenging in
the year ahead. The industry is facing an oversupply of property in certain
sectors while demand is fairly muted. In addition, increasing administered costs
such as electricity and rates as well as an increase in maintenance costs will
put pressure on distribution growth for the industry in the near future.
The income generating capacity of the existing direct property portfolio is
anticipated to improve and contribute towards unitholder value over the next few
years. The Fund`s global diversification decreases risk and provides exposure to
high quality global assets. The substantial cash holdings of the Fund provide it
with significant flexibility to grow through value-enhancing acquisitions and
developments.
Since its official listing date of 23 November 2005 the Fund has delivered on
its objectives of providing real returns to unitholders who have received an
annualised return of 11.1 percent compared to an annualised inflation of 6.6
percent over the same period. We remain focused on delivering sustainable real
returns in the years to come.
Service charge
The service charge is equal to 0.5% per annum of the Fund`s market
capitalisation and borrowing facilities based on the average daily closing
prices of the units. The amount paid to OCPFM was R1.269 million (September
2010: R1.162 million).
Property management
Property management is outsourced to OCPFM and external service providers. The
amount paid to OCPFM was R436 173 (September 2010: R456 000).
Actual units in issue
September 2011: 39 592 393 (September 2010: 37 462 790).
Changes to the board
During the interim period, Mr Busisa Mhlanga Jiya resigned as Non-executive
Director effective 2 October 2011. The Board will appoint a new Non-executive
Director as soon as possible, but no later than the next Board of directors
meeting.
Income Distribution declaration and important dates
Notice is hereby given that an income distribution after non-permissible income
in respect of the six months ended 30 September 2011 of 4 709.59 cents (in
aggregate) for every 100 units so held, has been declared payable to unit
holders recorded in the register of the Fund at close of business on Friday, 11
November 2011. The concomitant unit distribution of 3.40 units for every 100
units so held, which unit holders may elect to receive in lieu of the
aforementioned income distribution, and which income distribution comprises of
the following three payments, namely:
Income category Cents (per Cents (per Scrip
unit) 100 units) election
(per 100
units)
(i) Property income 36.8215 3 682.15 2.65
(ii) Offshore dividend income 7.1767 717.67 0.52
(iii Domestic permissible investment 3.0977 309.77 0.22
) income
Total 47.0959 4 709.59 3.39
((i) - (iii) collectively referred to as the "income distribution" and/or the
"unit distribution" as the case may be.)
Unitholders should take note of the corporate action timetable as set out below
in respect of the above income and unit distribution and the election in terms
thereof:
Declaration announcement on SENS of income Thursday, 20 October 2011
distribution and right of election to receive
unit distribution
Circular and form of election posted to Monday,24 October 2011
unitholders
Finalisation announcement on SENS in respect of Friday,28 October 2011
income distribution and right of election to
receive unit distribution
Last day to trade in order to be eligible for Friday,4 November 2011
the income distribution/unit distribution
Trading commences ex-entitlement Monday, 7 November 2011
Listing of maximum possible number of unit Monday, 7 November 2011
distribution units at commencement of trade on
Closing date for the election of unit Friday, 11 November 2011
distribution or scrip issue at 12:00
Record date for income distribution Friday, 11 November 2011
Income distribution cheques and/or unit Monday, 14 November 2011
certificates posted and CSDP/broker accounts
updated
Announcement of the results of the income Monday, 14 November 2011
distribution on SENS
Adjustment of number of new units listed on or Wednesday, 16 November 2011
about
Note:
1. Units may not be dematerialised or re-materialised between Monday 7
November 2011 and Friday 11 November 2011.
2. The above dates and times may be subject to change. Any changes will be
announced on SENS.
3. All times quoted are South African times.
4. Dematerialised unitholders are requested to ascertain from their broker or
CSDP as to the cut-off time required by them in order to advise the
transfer secretaries of their election.
5. If no election is made, unit holders will receive the income distribution.
A circular will be posted out to unit holders on or about Monday, 24 October
2011, in respect of the income and unit distribution.
By order of the board
Oasis Crescent Property Fund Managers Limited
Cape Town
19 October 2011
Designated Advisor
PSG Capital (Pty) Limited
Date: 20/10/2011 17:41:29 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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