| Wed 9 May 2001, 0:00 | | Cbd Property Fund Pioneer Property Fund - Results |
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YEAR ENDED 31 MARCH 2001
The directors of Sage Property Trust Managers Limited announce that the audited
consolidated results of the Trusts for the year ended 31 March 2001 are as
follows:
CBD PROP. FUND PIONEER PROP. FUND
2001 2000 2001 2000
R000 R000 R000 R000
Consolidated Income Statements
Net property income (note 1) 36 640 32 575 40 246 41 213
Interest 5 216 8 912 5 424 6 740
41 856 41 487 45 670 47 953
Trust expenditure 1 317 1 212 1 657 1 558
Headline earnings 40 539 40 275 44 013 46 395
Net write up/(down) on
revaluation of investment
property 4 800 (11 504) (18 132) 9 618
Net surplus/(deficit) on disposal
of investment property 330 6 635 3 659 (309)
Net income 45 669 35 406 29 540 55 704
Capital (surplus)/deficit
transferred (to)/from non-
distributable reserve (5 130) 4 869 14 473 (9 309)
Transfer from maintenance
reserve 1 500 1 541 639 1 233
Income for the year available
for distribution 42 039 41 816 44 652 47 628
Units in issue 122 137 500 122 137 500 134 789 175 134 789 175
Net income (cents per unit) 37,39 28,98 21,92 41,32
Headline earnings
(cents per unit) 33,19 32,97 32,65 34,42
Income distributions
(cents per unit) 34,42 34,23 33,12 35,34
Net asset value (cents per unit) 203 200 263 275
Consolidated balance sheets
Assets
Non-current assets
Investment property 223 370 194 108 327 132 342 908
Current assets 57 606 82 571 55 815 57 149
Total assets 280 976 276 679 382 947 400 057
Unitholders9 interest
and liabilities
Unitholders' interest 248 288 244 659 355 113 370 215
Current liabilities 32 688 32 020 27 834 29 842
Total unitholders' interest
and liabilities 280 976 276 679 382 947 400 057
Consolidated statements of
changes in unitholders' interest
Capital of Trust
Balance at beginning and end
of the year 148 725 148 725 256 383 256 383
Non-distributable reserve 95 444 90 314 98 437 112 910
Balance at beginning of the year
- As previously reported 90 314 111 395 112 910 23 510
- Change in accounting policy - (16 212) - 80 091
Adjustment to current independent
valuation of investment
property 4 800 (11 504) (18 132) 9 618
Net surplus/(deficit) on disposal
of investment property 330 6 635 3 659 (309)
Maintenance reserve 4 109 5 609 280 919
Balance at beginning of the year 5 609 7 150 919 2 152
Transfer to income for the year
available for distribution (1 500) (1 541) (639) (1 233)
Undistributed income 10 11 13 3
Balance at beginning of the year 11 3 3 9
Income for the year available
for distribution 42 039 41 816 44 652 47 628
Income available for
distribution 42 050 41 819 44 655 47 637
Income distributions (42 040) (41 808) (44 642) (47 634)
Total UNITHOLDERS' INTEREST AT END
of the year 248 288 244 659 355 113 370 215
Abridged consolidated cash flow statements
Net cash inflow/(outflow)
from operating activities 3 842 (876) (4 574) (237)
Net cash (outflow)/inflow from
investing activities (25 308) 11 753 1 116 (1 336)
Net (decrease)/increase in
cash resources (21 466) 10 877 (3 458) (1 573)
Cash resources at the beginning
of the year 73 683 62 806 48 242 49 815
Cash resources at the end of
the year 52 217 73 683 44 784 48 242
NOTES
1. Depreciation expense charged
against net property income 1 176 1 277 187 222
2. Capital expenditure during
the year 26 372 1 623 2 802 3 298
3. Capital expenditure committed or
authorised at 31 March 101 2 600 12 308 1 380
4. Uncommitted capital available
for property investments 18 854 40 126 15 217 25 020
COMMENTS
Change in accounting policies
The results of the Trusts are presented in compliance with South African
Statements of Generally Accepted Accounting Practice.
The introduction of new statements during the review period required the Trusts
to change their accounting policies in respect of maintenance provisions and
valuation of investments.
A maintenance reserve, as determined by the directors of the management
company, has been created to replace the maintenance provision and movements
therein are no longer included in net income.
Investment properties are valued annually and any movement in valuation
together with realised surpluses or deficits on disposal are now included in
net income.
These changes have no effect on income available for distribution or income
distributed to unitholders. Prior year results have been restated.
CBD PROPERTY FUND
Net property income for the year under review increased by 12,5%, partly due to
acquisitions. However, as a result of lower interest earnings, headline
earnings increased only marginally to R40,5 million or 33,19 cents per unit.
Income available for distribution was R42,0 million or 34,42 cents per unit.
This is marginally above the previous year and ahead of expectations as
reported at the interim stage.
During the review period the Robert Koch building in Pretoria was sold for R1,2
million and the purchase of two office developments in Sandton, previously
reported, was finalised. An amount of R18,9 million is available for investment
and prospective acquisitions are currently being investigated.
PIONEER PROPERTY FUND
As anticipated in the interim report in October 2000, a difficult letting
climate impacted on performance in the second half of the year. As a result,
net property income for the year declined by R1,0 million to R40,2 million.
This, together with lower interest earnings, resulted in a 5,1% reduction in
headline earnings to R44,0 million or 32,65 cents per unit.
Income available for distribution was R44,7 million or 33,12 cents per unit,
6,3% below the previous year.
An amount of R10,3 million has been committed to a prime industrial development
in Modderfontein and will benefit earnings from July 2001. There has also been
a marked increase in enquiries for the purchase of older properties in the
portfolio. Disposal of such properties would generate additional capital for
new prime investments.
STRATE
The Trusts are scheduled to move to the STRATE system during July and August
2001. Dematerialisation will start on 30 July with electronic trading
commencing on 20 August and the first electronic settlement taking place on 27
August. All registered unitholders will shortly be informed of the procedures
to be followed in this regard.
INCOME DISTRIBUTIONS
CBD PROP. FUND PIONEER PROP. FUND
2001 2000 2001 2000
Income available for distribution
(cents per unit) 34,42 34,23 33,12 35,34
Income distributions (cents per unit) 34,42 34,23 33,12 35,34
- Interim 14,64 15,54 17,15 17,20
- Final 19,78 18,69 15,97 18,14
The final distributions, being number 39 for CBD Property Fund and number 45
for Pioneer Property Fund, have been declared in respect of the income
distribution period 1 October 2000 to 31 March 2001.
Last day to register 25 May 2001 25 May 2001
Dividends will be paid on or about 31 May 2001.
By order of the Board
CS Cant
Secretary
8 May 2001
REGISTERED OFFICE
11th Floor Sage Centre
10 Fraser Street Johannesburg 2001
PO Box 7755 Johannesburg 2000
(Reg no 1975/000613/06)
TRANSFER SECRETARIES
Fraser Street Registrars (Pty) Limited
Ground Floor Sage Centre
10 Fraser Street Johannesburg 2001
PO Box 61178 Marshalltown 2107
