| Wed 25 Apr 2012, 14:42 | | REB - Rebosis Property Fund Limited - Unaudited interim results for the six |
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REB
REB
REB - Rebosis Property Fund Limited - Unaudited interim results for the six
months ended 29 February 2012
REBOSIS PROPERTY FUND 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 INTERIM RESULTS FOR THE SIX MONTHS ENDED 29 FEBRUARY 2012
- 12,7% increase in distribution to 43,0 cents per linked unit
- R3,78 billion of investment property
- R10,53 net asset value per linked unit, excluding deferred taxation
- 16% retail turnover growth
- Acquisitions with a market value of R543 million secured
Statement of comprehensive income
Unaudited Unaudited Audited
6 months ended 6 months ended year
ended
29 Feb 2012 28 Feb 2011 31 Aug 2011
R000 R000 R000
REVENUE
Property portfolio 262 056 92 511 257 067
Rental income 196 072 79 976 252 330
Straight line rental income
accrual 65 984 12 535 4 737
Net income from facilities 7 468 - 3 994
management
Sundry income 475 243 403
Total revenue 269 999 92 754 261 464
Property expenses (42 700) (18 676) (59 725)
Administration and corporate (8 260) (1 431) (3 957)
costs
Restructuring costs - - (50 028)
Debt arrangement fees - - (120 726)
Net operating profit 219 039 72 647 27 028
Changes in fair values of (15 664) 23 580 262 761
investment properties and
financial instruments
Profit from operations 203 375 96 227 289 789
Net finance charges (59 515) (60 112) (144 701)
Profit before debenture interest 143 860 36 115 145 088
and taxation
Debenture interest (94 490) - (48 898)
Profit before taxation 49 370 36 115 145 088
Taxation (67 005) (11 867) (44 038)
(Loss)/profit for the period (17 635) 24 248 52 152
Reconciliation of earnings and
distributable earnings
(Loss)/profit for the period (17 635) 24 248 52 152
attributable to equity holders
Debenture interest 94 490 - 48 898
Earnings attributable to linked 76 855 24 248 101 050
unitholders
Change in fair value of 24 419 10 780 (241 026)
properties (net of deferred
taxation)
Change in fair value of
investment properties 30 017 12 535 (280 263)
Deferred taxation (5 598) (1 755) 39 237
Headline profit/(loss) 101 274 35 028 (139 976)
attributable to linked
unitholders
Change in fair value of financial (10 334) (26 003) 12 601
instruments (net of deferred
taxation)
Change in fair value of
financial instruments (14 353) (36 115) 17 502
Deferred taxation 4 019 10 112 (4 901)
Straight line rental income (47 508) (9 025) (3 411)
accrual (net of deferred
taxation)
Straight line rental income
accrual (65 984) (12 535) (4 737)
Deferred taxation 18 476 3 510 1 326
Deferred taxation - rate and 50 108 - 8 376
other adjustments
Structuring fee amortisation 950 - 554
Restructuring costs - - 50 028
Debt arrangement fees - - 120 726
Distributable earnings 94 490 - 48 898
attributable to linked
unitholders
Number of linked units/shares in 219 744 713 1 000 219 744 713
issue
Weighted average number of linked 219 744 713 1 000 64 419 020
units/shares in issue
Basic and diluted earnings per 34,97 2 424 800,00* 156,86
linked unit (cents)
Headline profit/(loss) per linked 46,09 3 502 800,00* (217,29)
unit (cents)
Distributable earnings per linked 43,00 - 22,25
unit (cents)
* Calculation has been based on the number of shares in issue at 28 February
2011.
Abridged statement of changes in equity
Unaudited Unaudited Audited
6 months ended 6 months ended year
ended
29 Feb 2012 28 Feb 2011 31 Aug 2011
R000 R000 R000
Stated capital 477 168 1 477 168
Balance at the beginning of
the period 477 168 1 1
Issue of shares - - 477 167
Reserves 34 517 24 248 52 152
Balance at the beginning of
the period 52 152 - -
(Loss)/profit for the period (17 635) 24 248 52 152
511 685 24 249 529 320
Statement of financial position
Unaudited Unaudited Audited
29 Feb 2012 28 Feb 2011 31 Aug 2011
R000 R000 R000
ASSETS
Non-current assets 3 884 737 2 972 919 3 501 676
Investment property 3 784 500 2 857 500 3 400 400
Goodwill 95 703 95 703 95 703
Property, plant and equipment 438 18 981 527
Structuring fee 4 096 735 5 046
Current assets 29 067 9 718 85 800
Trade and other receivables 18 419 8 241 13 680
Structuring fee 1 900 - 1 900
Cash and cash equivalents 8 748 1 477 70 220
3 913 804 2 982 637 3 587 476
EQUITY AND LIABILITIES
Equity 511 685 24 249 529 320
Stated capital 477 168 1 477 168
Reserves 34 517 24 248 52 152
Non-current liabilities 3 265 731 2 739 844 2 933 310
Debentures 1 595 347 2 162 522 1 595 347
Secured financial liabilities 1 433 300 435 728 1 153 531
Interest rate swaps 30 337 34 024 44 690
Deferred taxation 206 747 107 570 139 742
Current liabilities 136 388 218 544 124 846
Secured financial liabilities - 9 245 -
Trade and other payables 39 072 172 476 60 761
Rental warranty 2 826 - 15 187
Bank overdraft - 36 826
Unitholders for distribution 94 490 - 48 898
Total equity and liabilities 3 913 804 2 982 637 3 587 476
Net asset value per linked unit 9,59 2 186 771,00* 9,67
(R)
Net asset value per linked unit 10,53 2 294 341,00* 10,30
(excluding deferred taxation) (R)
* Calculation has been based on the number of shares in issue at 28 February
2011.
Abridged statement of cash flows
Unaudited Unaudited Audited
6 months ended 6 months ended year
ended
29 Feb 2012 28 Feb 2011 31 Aug 2011
R000 R000 R000
Cash flows from operating 6 903 15 407 (233 172)
activities
Cash generated from/(absorbed by) 66 418 75 519 (88 471)
operations
Net finance costs (59 515) (60 112) (144 701)
Cash outflows from investing (348 144) (481 804) (634 233)
activities
Cash inflows from financing 279 769 431 048 937 625
activities
Net movement in cash and cash (61 472) (35 349) 70 220
equivalents
Cash and cash equivalents at the 70 220 - -
beginning of the period
Cash and cash equivalents at the 8 748 (35 349) 70 220
end of the period
Segmental information
Retail Office Total
R000 R000 R000
For six months ended 29 February
2012
Extracts from statement of
comprehensive income
Total revenue from property 126 628 77 387 204 015
portfolio (excluding straight
line rental income accrual)
Rental income 126 305 69 767 196 072
Net income from facilities
management contract - 7 468 7 468
Sundry income 323 152 475
Property expenses (32 795) (9 905) (42 700)
Net property income 93 833 67 482 161 315
Extracts from statement of
financial position
Investment property 2 276 800 1 507 700 3 784 500
For period from listing to
31 August 2011
Extracts from statement of
comprehensive income
Total revenue from property 64 896 42 713 107 609
portfolio (excluding straight
line rental income accrual)
Rental income 64 791 38 677 103 468
Net income from facilities
management - 3 994 3 994
Sundry income 105 42 147
Property expenses (16 401) (6 334) (22 735)
Net property income 48 495 36 379 84 874
Extracts from statement of
financial position
Investment property 1 915 000 1 485 400 3 400 400
Financial results
Rebosis, the largest black-managed and substantially black-held property fund,
which listed on the JSE Limited ("JSE") on 17 May 2011, has declared a
distribution of 43,0 cents per linked unit for the six-months ended 29 February
2012. This represents an effective increase of 12,7% compared to the previous
distribution of 22,25 cents per linked unit for the period from listing on 17
May 2011 to 31 August 2011.
At 29 February 2012, the net asset value per linked unit of R10,53, excluding
deferred taxation, represents a premium of 8,6% to Rebosis` closing unit price
of R9,70.
The comparative results of the company for the period 1 December 2010, the date
on which Rebosis acquired the initial portfolio of six properties, to 28
February 2011 reflect the results of the company prior to listing. Pursuant to
its listing on the JSE, the portfolio of assets, the gearing against the
portfolio, the asset management arrangements and the capital structure were
substantially restructured. Subsequent to the listing, Rebosis took transfer of
two additional properties being Victoria Mxenge on 24 May 2011 and Bloed Street
Mall on 25 November 2011.
Property portfolio
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.
The properties, which were valued by independent valuer Quadrant Properties
(Proprietary) Limited, increased in value by R36,0 million to R3,785 billion at
29 February 2012.
Property Value Value per m2
GLA m2 R000 R/m2
Retail portfolio 134 660 2 276 800 16 908
Hemingways Mall 72 788 1 493 800 20 523
Mdantsane City 36 112 415 000 11 492
Bloed Street Mall 25 760 368 000 10 291
Office portfolio 113 103 1 507 700 13 330
Victoria Mxenge 24 720 426 500 17 253
Salu 30 157 433 500 14 375
Liberty 33 885 416 000 12 277
Bank of Lisbon 14 593 126 300 8 655
Arbour Square 9 748 105 400 10 812
247 763 3 784 500 14 493
During the period, the company let 3 757 m2 of new space and leases in respect
of 3 805 m2 were renewed.
At the reporting date, vacancies for the total portfolio were 4,1%. Taking into
account signed leases commencing after the reporting date, vacancies are 2,6%.
Borrowings
To ensure effective cash management, surplus cash is invested against the
revolving debt facilities. At 29 February 2012, Rebosis` net borrowings of
R1,433 billion equate to a gearing ratio of 37,9%. The average interest rate for
the period was 8,9% and interest rates are fixed in respect of 80% of borrowings
for an average period of 3,5 years.
Acquisitions
Further to the cautionary announcements released on SENS on 7 December 2011, 5
March 2012 and 20 April 2012 relating to the acquisition of letting enterprises
and properties from various vendors by Rebosis, unitholders are advised that a
SENS announcement was released today which sets out the financial effects of the
remaining acquisitions being 28 Harrison Street, SASSA Campus, the Revenue
Building and 270 Jabu Ndlovu Street ("the remaining acquisitions") which
includes a revised forecast for Rebosis.
Directorate
SP Fifield retired and did not stand for re-election at the company`s first
annual general meeting held on 28 March 2012. N Qangule and T Seopa have been
appointed as independent non-executive directors and members of the audit and
risk committee and investment committee with effect 26 April 2012.
Prospects
With less than a year since listing, Rebosis has established itself
operationally and is well positioned for future growth. The retail properties
have continued to perform ahead of the industry with turnover growth for the
period of 16%. Vacancies in the portfolio have reduced and interest for our
retail space remains strong. The board anticipates that the distribution for the
year ending 31 August 2012 remains unchanged between 85,0 cents and 88,3 cents
per linked unit. The forecast is based on the assumption that there will be no
changes in current trading conditions and that the remaining acquisitions will
be acquired with effect 1 July 2012. This forecast has not been reviewed or
reported on by the company`s auditors.
Debenture interest distribution
Distribution no. 2 of 43,0 cents per linked unit for the period ended 29
February 2012 will be paid to linked unitholders in accordance with the
abbreviated timetable set out below:
2012
Last day to trade cum distribution Friday, 11 May 2012
Linked units trade ex distribution Monday, 14 May 2012
Record date Friday, 18 May 2012
Payment date Monday, 21 May 2012
Linked unitholders may not dematerialise or rematerialise their linked units
between Monday, 14 May 2012 and Friday, 18 May 2012, both days included.
Basis of preparation
The results for the six months ended 29 February 2012 have not been audited or
reviewed by the company`s independent auditors. These results have been prepared
in accordance with International Financial Reporting Standards (IFRS), the AC
500 series issued by the South African Institute of Chartered Accountants, JSE
Listings Requirements and the requirements of the South African Companies Act 71
of 2008 (as amended). This report has been prepared in terms of IAS 34 -
"Interim Financial Reporting". The accounting policies adopted in the
preparation of these unaudited results are consistent with those applied in the
preparation of the financial statements for the year ending 31 August 2011. The
comparative figures for the year ended 31 August 2011 have been restated in the
statement of comprehensive income to reflect the income from facilities
management on a net basis. These financial results have been compiled by the
financial director, JA Finn CA(SA).
While the company has complied with IFRS and JSE Listings Requirements by
disclosing earnings and headline earnings per share, the directors are of the
view that earnings per share are not meaningful to investors as the shares are
traded as part of a linked unit and all earnings are distributed by way of
debenture interest. Further, headline earnings include fair value adjustments
for financial instruments and the straight-line rental income accrual that do
not affect distributable earnings. Distributable earnings and the distribution
per linked unit, as disclosed above, are more meaningful to investors.
By order of the board
Rebosis Property Fund Limited
25 April 2012
Directors
ATM Mokgokong*# (Chairperson), SM Ngebulana (CEO), 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
Sponsor
Java Capital
Company secretary
Probity Business Services (Proprietary) Limited
Date: 25/04/2012 14:42:01 Produced by the JSE SENS Department.
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