| Wed 14 Mar 2001, 0:00 | | Hyprop Investments Limited - Audited Results |
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Hyprop Investments Limited
(Registration number 1987/00528/06)
Audited results for the year ended 31 December 2000
Operating income up 19%
Distribution per combined unit up 9%
Earnings per combined unit up 7%
GROUP INCOME STATEMENT
31 Dec 31 Dec
2000 1999 %
R000 R000 change
Turnover 56 521 56 058 1
Operating income 42 754 35 833 19
Interest received 7 617 12 668
Reversal of provision for head lease losses 272 0
Income before distribution to unit holders 50 643 48 501
Proportionate share of income from
associated company 8 3
Income available for distribution 50 651 48 504
Interest (49 260) (46 526)
Debenture interest paid (50 628) (46 526) 9
Less: Capitalised 1 368 0
Income before taxation 1 391 1 978
Secondary tax on companies (13) (12)
Income after taxation 1 378 1 966
Final Interim Total Total
Dividends per ordinary
share (cents) 0,126 0,108 0,234 0,215
Interest per debenture
(cents) 62,874 53,892 116,766 107,305
Dividends and interest per
combined unit (cents) 63,000 54,000 117,000 107,520 9
Combined units in issue 43 358 756 43 358 756
Earnings per combined unit
(cents) 119,9 111,8 7
SUMMARISED CASH FLOW STATEMENTS
R000 R000
Cash flow from operating activities 1 194 6 222
Cash generated from operations 42 134 37 480
Net interest income 7 617 12 668
Distribution to unitholders (48 557) (43 926)
Cash flow from investing activities (34 238) (5 478)
Cash flow from financing activities 110 (14)
Net (decrease)/increase in cash
and cash equivalents (32 934) 730
Cash and cash equivalents at the
beginning of the year 89 454 88 724
Cash and cash equivalents at the end of the year 56 520 89 454
GROUP BALANCE SHEET
31 Dec 31 Dec
2000 1999
R000 R000
Assets
Non-current assets 277 203 243 292
Property and equipment 276 603 242 590
Financial assets 600 702
Current assets 58 418 91 173
Trade and other receivables 1 898 1 719
Cash and cash equivalents 56 520 89 454
Total assets 335 621 334 465
Equity and liabilities
Equity capital and reserves 63 047 61 770
Ordinary share capital 434 434
Non-distributable reserves 57 582 57 310
Retained income 5 031 4 026
Non-current liabilities 236 549 236 549
Debentures - interest bearing 213 759 213 759
Debenture premium 22 790 22 790
Current liabilities 36 025 36 146
Trade and other payables 8 709 11 002
Unitholders for distribution 27 316 25 144
Total equity and liabilities 335 621 334 465
GROUP STATEMENT OF CHANGES IN EQUITY
Non-
Share Distri- distri-
butable butable
capital reserve reserve Total
R000 R000 R000 R000
Balance at 1 January 1999 434 2 153 57 310 59 897
Income after taxation for the
year ended 31 December 1999 1 966 1 966
Dividends (93) (93)
Balance at 31 December 1999 434 4 026 57 310 61 770
Income after taxation for the
year ended 31 December 2000 1 378 1 378
Reversal of provision for
anticipated head lease losses (272) 272
Dividends (101) (101)
Balance as at 31 December 2000 434 5 031 57 582 63 047
DISTRIBUTION PER COMBINED UNIT
1994 66,00
1995 71,50
1996 76,50
1997 84,92
1998 96,00
1999 107,52
2000 117,00
COMMENTS
1 REVIEW OF RESULTS
Operating income for the year ended 31 December 2000 increased by 19%. This is
attributable to higher rentals achieved and additional income from completed
new developments, Morningview Office Park and the IMAX and retail extension to
Hyde Park Corner Shopping Centre.
The decrease in interest received arises from the reduction in cash which was
utilised for capital expenditure on new developments and a decrease in rates.
2 DISTRIBUTION
The Board of Hyprop Investments Limited ("Hyprop") has authorised a final
distribution of 63,000 (1999: 57,990) cents per combined unit. The total
distribution for the year ended 31 December 2000 of 117 cents per combined unit
represents an increase of 9,0% compared with the distribution for the year
ended 31 December 1999.
3 VACANCIES
Vacancies by area increased from 2,08% in December 1999 to 5,96% in December
2000. The relocation of major tenants from two office parks mainly contributed
to the increase in vacancies. An active marketing campaign to re-let the space
has been implemented. No vacancies are attributable to the retail portfolio.
4 NEW DEVELOPMENTS AND COMMITMENTS
4.1 Hyde Park Corner Shopping Centre
IMAX and retail extension
The IMAX and retail extension were completed during October 2000 which
coincided with the provisional liquidation of the IMAX licence holder, as a
consequence of which the lease was cancelled on 30 November 2000. Subsequent to
the year-end a revised new lease agreement for the IMAX theatre has been
concluded with a wholly owned subsidiary of Nedcor Limited.
Additional open parking and the upgrade of the Jan Smuts Avenue and Sixth Road
intersection which improved access to and egress from the existing centre were
completed during November 2000.
The committed capital expenditure as at 31 December 2000, is R5,336 million.
Morningview Office Park
The first phase of the extension to Morningview Office Park of 2 600 m2 leased
to Clientele Life Assurance Company Limited, was completed on 18 August 2000.
The second phase of approximately 2 800 m2 has commenced with completion
scheduled for September 2001. A portion will be leased to Clientele Life
Assurance Company Limited and negotiations are in progress with prospective
tenants for the balance.
The committed capital expenditure as at 31 December 2000, is R12,665 million.
4.2 Tenant installations, plant and equipment, building appurtenances
R3,960 million (1999: R2,975 million) was spent on tenant installations, plant
and equipment and building appurtenances. In line with the policy of
maintaining the quality of the property portfolio, the Board has approved
further expenditure of R2,017 million for the year ending 31 December 2001.
After payment of the committed capital expenditure detailed above, trade and
other payables, taxation and distribution to unitholders for the year ended 31
December 2000, Hyprop will have cash of R2,375 million available for investment
5 COMBINED UNITS AND DEBENTURES
There were no changes in the number of combined units and debentures in issue
for the year ended 31 December 2000.
6 ACQUISITION OF THE BUSINESS OF KIRCHMANN-HURRY PROPERTIES LIMITED GROUP
("KHP")
In terms of an agreement entered into between Hyprop and KHP, and subject to
the fulfillment of the conditions precedent set out in the detailed joint
cautionary announcement published on 7 March 2001, KHP has undertaken to
dispose of its business as a going concern to Hyprop with effect from the last
day of the month in which the conditions precedent are fulfilled or waived. The
effective date is anticipated to be 1 May 2001. The aggregate transaction
consideration will be discharged by Hyprop assuming the liabilities relating to
the transaction and through the issue of renounceable letters of allotment,
credited as fully paid, for 21 360 722 new Hyprop combined units which results
in a ratio of 57 Hyprop combined units for every 100 KHP combined units held.
The following benefits are expected to result from the transaction:
* the tradability of the Hyprop combined units is expected to improve due to
the larger capitalisation of Hyprop, the increased number of Hyprop combined
units in issue and the enlarged pool of Hyprop combined unitholders;
* an entity with greater critical mass will be created, resulting in a greater
capability to raise capital for the acquisition of additional properties, which
will, in turn, broaden the base of potential new investors;
* economies of scale will be exploited to the benefit of Hyprop combined
unitholders;
* the impact of earnings volatility in respect of individual properties will
be diluted as a result of the larger combined portfolio;
* the addition of the KHP property portfolio is expected to reinforce the
superior rating that Hyprop currently enjoys relative to the property loan
stock and property unit trust sectors on the JSE Securities Exchange South
Africa ("the JSE").
7 PROSPECTS
Earnings per combined unit are expected to increase by at least 8% for the
first four months of 2001, which rate of increase will be maintained following
the acquisition of the business of KHP.
8 DECLARATION OF DIVIDEND AND PAYMENT OF DEBENTURE INTEREST: DISTRIBUTION NO 26
The directors have resolved that a final dividend of 0,126 cents per share be
declared, payable to shareholders registered on 6 April 2001.
In terms of the debenture trust deed, an interest payment of 62,874 cents per
debenture will be made to debenture holders registered on 6 April 2001.
The total final distribution to combined unit holders will be 63,000 cents per
combined unit.
The register of combined unit holders will be closed from 7 April 2001 to 15
April 2001, both days inclusive.
Cheques in respect of the final distributions will be posted on or about 30
April 2001.
On behalf of the Board
S Shaw-Taylor T Schultze
Chairman Managing Director
9 March 2001
Registered office Transfer secretaries
3rd Floor North Block Mercantile Registrars Ltd
Hyde Park Corner Shopping Centre 11 Diagonal Street
Jan Smuts Avenue Sandton 2196 Johannesburg 2001
PO Box 41257 PO Box 1053
Craighall 2024 Johannesburg 2000
