| Wed 18 Apr 2001, 0:00 | | Octodec Investments Limited - Projected Earnings 2 |
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OCTODEC INVESTMENTS LIMITED
and its subsidiaries
NOTICE TO LINKED UNIT HOLDERS
The directors report the unaudited results of the group for the six months
ended 28 February 2001 set out below, together with comparisons with the
results for the corresponding period ended in 2000 and the year ended 31 August
2000.
CONSOLIDATED INCOME STATEMENT
Key Six months Six month Year
% to to to
R'000 Changes 28/2/2001 29/2/2000 31/8/2000
Turnover (rental income) 1,3 24,094 23,777 47,744
Net rental from
properties (4,0) 16,414 17,099 33,900
Interest received 277 273 9
16,691 17,372 33,909
Interest paid 20,3 2,280 1,896 4,563
Depreciation 239 205 353
Profit before debenture
interest and capital
profit 14,172 15,271 28,993
Capital profit/loss:
disposal of properties - - (126)
Profit before debenture
interest (7,2) 14,172 15,271 28,867
Debenture interest 13,922 15,053 28,606
Profit before taxation 250 218 261
Taxation 146 122 219
Profit after taxation 104 96 42
Dividends (67) (74) (141)
Transfer from
non-distributable
reserve - - 126
Retained profit for the
year/period 37 22 27
Earnings per linked unit
(cents) (basic
and diluted) 22,8 24,6 46,6
Headline earnings per
linked unit (cents)
(basic and diluted) 22,8 24,6 46,8
Distribution per linked
unit (cents)
Dividends 0,11 0,12 0,23
Interest 22,64 24,48 46,52
Total (7,5) 22,75 24,60 46,75
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Six months Six months Year
to to to
R'000 28/2/2001 29/2/2000 31/8/2000
CASH FLOW FROM OPERATING ACTIVITIES
Net rental income from properties 16,175 16,895 33,548
Adjustment for :
- Depreciation 239 205 353
- Working capital changes (179) 741 2,268
Cash generated from operations 16,235 17,841 36,169
Investment income 277 273 9
Finance costs (2,280) (1,896) (4,563)
Taxation paid (58) (10) (473)
Distribution to linked unit
holders paid (13,621) (15,681) (30,807)
Net cash inflow (outflow) from
operating activities 553 527 335
CASH FLOW FROM INVESTING ACTIVITIES
Investing activities (5,310) (1,888) (4,367)
Proceeds from sale of fixed assets - - 275
Net cash outflow used in investing
activities (5,310) (1,888) (4,092)
Cash flow from financing activities 5,085 (242) 2,867
NET INCREASE IN CASH AND CASH
EQUIVALENTS 328 (1,603) (891)
Cash and cash equivalents at
beginning of period/year (120) 771 771
Cash and cash equivalents at end
of period/year 208 (832) (120)
ABRIDGED CONSOLIDATED BALANCE SHEET
R'000 28/2/2001 29/2/2000 31/8/2000
ASSETS
Investment in fixed properties 251,913 244,911 246,842
Investments - unlisted 3,373 3,373 3,373
Current assets 4,078 3,264 5,429
Total assets 259,364 251,548 255,644
EQUITY AND LIABILITIES
Share capital and premium 7,542 7,542 7,542
Non-distributable reserve 6,915 7,041 6,915
Retained profit 292 250 255
Ordinary shareholders' interest 14,749 14,833 14,712
Debentures 185,130 185,130 185,130
Linked unit holders' interest 199,879 199,963 199,842
Outside shareholders' interest 4,188 4,068 4,077
Long term liabilities - interest
bearing 33,000 25,000 -
Deferred taxation - 56 64
Current liabilities - Interest
bearing - 838 30,135
- Non-interest bearing 22,297 21,623 21,526
Total equity and liabilities 259,364 251,548 255,644
Linked units in issue 61,492,890 61,492,890 61,492,890
Net asset value per linked unit
(cents) 325 325 325
STATEMENT OF CHANGES IN EQUITY
Share Share Non-distri- Distribu- Total
capital premium butable table
R'000 reserve reserve
Balance at
1/9/1999 615 6,927 7,041 228 14,811
Profit
attributable to
ordinary
shareholders 42 42
Dividends (141) (141)
Transfer to non-
distributable
reserve (126) 126 -
Balance at
1/9/2000 615 6,927 6,915 255 14,712
Profit
attributable to
ordinary
shareholders 104 104
Dividends (67) (67)
Transfer to
non-distributable
reserve - - -
Balance at
28/2/2001 615 6,927 6,915 292 14,749
NOTES:
1. Interest, assessment rates and other municipal charges in respect of
undeveloped properties previously capitalised to the cost of such properties
are now being expensed in the period in which they occur. This change in
accounting policy came into effect on 1 March 2000. The interim results for
the six month period ended 29 February 2000 were prepared on the basis of the
previous accounting policy. Had the same accounting policy been applied for
the six months ended 29 February 2000, the headline earnings per linked unit
for that period would have been approximately 23,6 cents. Save as aforesaid
the same accounting policies and methods of computation were followed as were
followed in the financial statements of 31 August 2000.
2. Capital expenditure during the period under review amounted to R5,3-million.
3. Interest charges in an amount of R297 642 have been capitalised to a
property under development.
4. The company has no capital commitments.
5. Guarantees amounting to approximately R1,5-million have been issued in
respect of electricity deposits for various subsidiaries.
COMMENTS
1. Income before debenture interest, capital profit and taxation decreased by
7,2 percent to R14,2-million from R15,3-million.
2. Potential rentals from vacancies amount to R650 000 per month which
represents approximately 13% of total potential monthly rental income.
Vacancies increased due to the loss of a number of the larger tenants who
vacated their premises.
3.The distribution to linked unitholders of 22,75 cents per linked unit
represents a decrease of 7,5 percent on the distribution for the comparable
period last year although slightly higher than the final distribution for the
year ended 31/8/2000. (See Note 1)
4. The directors are of the view that if market conditions remain stable, the
distribution for the year ended 31/8/2001 should at least remain the same as
the current period.
5. Your company is in the process of acquiring 80% of Killarney Mall. The
acquisition will be financed by loan capital and your directors refer you to
circulars setting out the details. Octodec's strategy is to build a substantial
portfolio of quality, well positioned, income producing properties. The
acquisition of Killarney Mall will increase the overall quality of Octodec's
property portfolio and represents a blue chip tenant mix with 75% national
tenants, sustainable rentals and good escalations.
The acquisition of Killarney Mall will help Octodec to achieve appropriate
critical mass.
DECLARATION OF DIVIDEND AND INTEREST PAYMENT NO. 22
Notice is hereby given that dividend No. 22 of 0,11 cents (2000: 0,12 cents)
per ordinary share and interest of 22,64 cents (2000: 24,48 cents) per
debenture totalling 22,75 cents (2000: 24,60 cents) have been declared payable
to linked unitholders registered in the books of the company at the close of
business on 4 May 2001.
The register of linked unit holders will be closed from 5 May 2001 to 18 May
2001, both days inclusive.
Payment will be effected on or about 23 May 2001.
By order of the Board
City Property Administration (Pty) Ltd 12 April 2001
A Wapnick Chairman
J P Wapnick Managing Director
Registered Office: Downies Building, 373 Proes Street, Pretoria, 0002. P.O. Box
15, Pretoria, 0001. Tel (012) 326-8811
Transfer Secretaries: Investments Registrars (Pty) Ltd, Pollack House, 440
Louis Botha Avenue, Highlands North, Johannesburg, P.O. Box 722, Highlands
North, 2037. Tel (011) 640-5081
Directors: A Wapnick (Chairman), J P Wapnick (Managing), M J Holmes, S P McCoy,
J Pollack, M Z Pollack, S Wapnick
