| Wed 20 Mar 2013, 15:59 | | ORION REAL ESTATE LIMITED - Abridged consolidated statement of financial positionas at 31 December 2012 |
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ORE 201303200036A
Abridged consolidated statement of financial position
as at 31 December 2012
Orion Real Estate Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/021085/06)
Share code: ORE ISIN: ZAE000075651
("Orion Real Estate" or "the company" or "the Group")
Unaudited Interim Consolidated
Results of the Group
for the six months ended
31 December 2012
Abridged consolidated statement of financial position
as at 31 December 2012
Unaudited Unaudited Audited
six months ended six months ended year ended
Figures in Rand 31 December 2012 31 December 2011 30 June 2012
ASSETS
Non-current assets 714 662 416 646 055 306 695 784 321
Investment properties 714 195 798 645 455 462 695 193 703
Property, plant and equipment 466 618 599 844 590 618
Current assets 37 434 121 25 568 538 33 993 706
Loans to related parties 6 898 832 2 700 135
Trade and other receivables 29 855 416 25 568 538 28 335 287
Cash and cash equivalents 679 873 2 958 284
Investment properties held for sale 16 264 535
Total assets 752 096 537 671 623 844 746 042 562
EQUITY AND LIABILITIES
Capital and reserves
Share capital and share premium 74 235 526 74 235 526 74 235 526
Debenture reserve 10 675 886 10 675 886 10 675 886
Retained earnings 303 917 870 255 745 661 303 725 058
Total equity attributable to owners of the parent 388 829 282 340 657 073 388 636 470
Non-controlling interest (270 321) (182 692) (267 426)
Total equity 388 558 961 340 474 381 388 369 044
Non-current liabilities 259 189 983 239 399 011 169 806 707
Linked debentures 49 386 923 61 043 086 49 386 923
Borrowings 141 659 844 138 578 268 51 796 490
Deferred tax liabilities 68 143 216 39 777 657 68 623 294
Current liabilities 104 347 593 91 750 452 187 866 811
Current income tax liabilities 13 936 404 7 992 119 12 715 619
Loans from shareholders 1 896 305 700 121 1 998 792
Loans from directors 2 598 511 2 593 616 2 598 511
Loans from related parties 201 650 1 077 731 905 609
Tenant deposits 6 085 201 6 750 314 6 246 795
Trade and other payables 27 718 375 17 432 082 24 448 808
Borrowings 50 798 493 54 594 071 136 569 656
Bank overdraft 1 112 654 610 398 2 383 021
Total liabilities 363 537 576 331 149 463 357 673 518
Total equity and liabilities 752 096 537 671 623 844 746 042 562
Abridged consolidated statement of comprehensive income
for the six months ended 31 December 2012
Unaudited Unaudited Audited
six months ended six months ended year ended
Figures in Rand 31 December 2012 31 December 2011 30 June 2012
Revenue 47 267 210 46 738 090 90 828 412
Other income 383 685 1 926 085 3 043 398
Other direct property operating costs (30 157 047) (27 655 400) (60 791 997)
Administrative and management expenses (5 273 319) (5 980 922) (11 965 192)
Repairs and maintenance (2 707 907) (1 678 508) (4 951 860)
Fair value measurement of investment property 72 376 415
Operating profit 9 512 622 13 349 345 88 539 176
Finance income 386 997 1 366 462 2 274 522
Linked debenture interest 5 656 163
Finance costs (8 482 844) (14 841 807) (17 205 419)
Profit/(Loss) before taxation 1 416 775 (126 000) 79 264 442
Taxation (1 226 858) 110 954 (31 384 825)
Profit/(Loss) for the year 189 917 (15 046) 47 879 617
Other comprehensive income
Total comprehensive income/(loss)
for the year 189 917 (15 046) 47 879 617
Profit/(Loss) and total comprehensive
income/(loss) for the year attributable to:
Owners of the parent 192 812 (12 811) 47 966 586
Non-controlling interest (2 895) (2 235) (86 969)
189 917 (15 046) 47 879 617
Earnings per linked unit
Basic earnings per linked unit (cents) 0.03 (0.00) 7.65
Diluted earnings per linked unit (cents) 0.03 (0.00) 7.65
Headline earnings per linked unit (cents) 0.16 (0.00) 0.07
Diluted headline earnings per linked unit (cents) 0.16 (0.00) 0.07
Reconciliation of basic earnings and
headline earnings:
Profit attributable to equity holders of the parent 192 812 (12 811) 47 966 586
Fair value adjustment to investment properties (58 867 502)
Linked debenture interest (5 656 163)
Change in capital gains tax rate 16 338 726
Loss on disposal of investment property 796 863 636 000
Headline earnings/(loss) 989 675 (12 811) 417 647
Abridged consolidated statement of cash flows
for the six months ended 31 December 2012
Unaudited Unaudited Audited
six months ended six months ended year ended
Figures in Rand 31 December 2012 31 December 2011 30 June 2012
Cash flows from operating activities 2 969 192 4 106 008 4 333 814
Cash generated by operations 11 938 187 12 986 075 23 148 936
Interest paid (8 482 844) (8 841 807) (17 205 419)
Taxation paid (486 151) (38 260) (1 609 703)
Cash flows (to)/from investing activities (3 064 284) 208 038 8 317 458
Cash flows (to)/from financing activities (912 952) (3 676 420) (10 827 985)
Net increase/(decrease) in cash and cash equivalents
and bank overdrafts (1 008 044) 637 626 1 823 287
Cash and cash equivalents and bank overdrafts
at the beginning of the period 575 263 (1 284 024) (1 248 024)
Cash and cash equivalents and bank overdrafts
at the end of the period (432 781) (646 398) 575 263
Statements of changes in equity
for the six months ended 31 December 2012
Total share Non-
Share Share capital and Debenture Retained controlling Total
Figures in Rand capital premium premium reserve earnings Total interest equity
Opening balance at
1 July 2011 6 270 098 67 965 428 74 235 526 10 675 886 255 758 472 340 669 884 (180 457) 340 489 427
Total comprehensive income
for the six months (12 811) (12 811) (2 235) (15 046)
Balance at
31 December 2011 6 270 098 67 965 428 74 235 526 10 675 886 255 745 661 340 657 073 (182 692) 340 474 381
Total comprehensive income
for the six months 47 979 397 47 979 397 (84 734) 47 894 663
Balance at 30 June 2012 6 270 098 67 965 428 74 235 526 10 675 886 303 725 058 388 636 470 (267 426) 388 369 044
Total comprehensive income
for the six months 192 812 192 812 (2 895) 189 917
Balance at
31 December 2012 6 270 098 67 965 428 74 235 526 10 675 886 303 917 870 388 829 282 (270 321) 388 558 961
Segment reporting
for the period ending 30 December 2012
R % R %
Revenue (excluding operating
lease adjustment and recoveries)
Commercial 15 202 791 42 Gauteng 24 271 871 67
Industrial 5 187 086 14 Western Cape 2 220 668 6
Retail 10 322 064 29 Mpumulanga 9 038 902 25
Hospitality 4 881 181 14 KwaZulu-Natal 530 240 1
Residential 468 560 1
36 061 682 100 36 061 682 100
R % R %
Property values (including
properties held-for-sale)
Commercial 271 924 185 38 Gauteng 512 510 564 72
Industrial 96 809 264 14 Western Cape 62 450 847 9
Retail 178 368 889 25 Mpumulanga 128 426 314 18
Hospitality 74 719 819 10 KwaZulu-Natal 10 808 073 2
Residential 20 373 641 3
Land 72 000 000 10
714 195 798 100 714 195 798 100
R % R %
Gross lettable area
Commercial 53 331 43 Gauteng 93 495 75
Industrial 21 988 18 Western Cape 8 784 7
Retail 27 576 22 Mpumulanga 15 850 13
Hospitality 16 029 13 KwaZulu-Natal 6 000 5
Residential 5 205 4
124 129 100 124 129 100
R % R %
Borrowings (excluding instalment
sales and loans)
Commercial 84 001 743 48 Gauteng 140 151 847 81
Industrial 28 383 786 16 Western Cape 12 344 371 7
Retail 41 125 771 24 Mpumulanga 15 701 647 9
Hospitality 10 221 813 6 KwaZulu-Natal 5 102 781 3
Residential 9 567 532 6
Land 0
173 300 646 100 173 300 646 100
R % R %
Rating of tenants (rental income)
Commercial A 1 250 443 4 Gauteng A 1 520 995 5
B 5 403 611 18 B 8 615 962 29
C 8 928 965 30 C 11 243 401 38
Industrial A 0 Western Cape A 71 610 0.2
B 2 475 806 8 B 1 533 464 5
C 1 916 218 6 C 602 183 2
Retail A 1 376 216 5 Mpumulanga A 1 034 054 3
B 1 560 773 5 B 425 276 1
C 4 515 203 15 C 3 983 362 13
Hospitality A 0 KwaZulu-Natal A 0
B 1 664 752 6 B 530 240 2
C 0 C 0
Residential A 0
B 0
C 468 560 2
29 560 547 100 29 560 547 100
A: Represents major listed companies.
B: Represents smaller listed companies and big unlisted companies.
C: Represents smaller unlisted companies and private businesses.
Commentary on the December 2012 interim financial statements
1. Operating performance
The Group managed to grow revenue from R46.7 million in December 2011 to R47.3 million in December 2012.
The increase of 1.13% is an indication of tight trading conditions. Other direct property operating costs increased
from R27.7 million to R30.2 million for the same period. This represents an increase of 9.05%. Administrative and
management expenses decreased by 11.83% but repairs and maintenance increased significantly by 61.32%. The
increase in maintenance costs reflects the drive to improve the general condition of all buildings. The operating profit
decreased with 28.74% from R13.3 million to R9.5 million. The total comprehensive income for the year improved from
a loss of R15 046 to a profit of R189 917. Finance cost decreased from R14.8 million to R8.5 million.
2. Basis of preparation
The condensed unaudited consolidated results have been prepared in accordance with the Framework concepts
and the measurement and recognition requirements of the International Financial Reporting Standards, containing
information required by the IAS 34: Interim Financial Reporting, the AC 500 standards as issued by the Accounting
Practices Board and in the manner required by the Companies Act and the JSE Listings Requirements. These results
were prepared by Sandarie le Roux CA(SA).
3. Contingent liabilities
The company has signed surety for the obligations of its subsidiaries in respect of mortgage bond finance and has
guaranteed the debts of a wholly owned subsidiary company until that company's assets, fairly valued, exceeds its
liabilities, and whilst it remains a wholly owned subsidiary.
4. Investment property acquired and disposed
4.1 Acquired
No properties were acquired during the reporting period.
4.2 Disposed
The following properties were sold during the reporting period:
Marlboro 78 and Marlboro 84.
5. Subsequent events
The directors are not aware of any matter or circumstance arising since 30 June 2012, which would affect the results or operations of the
Group significantly.
6. Dividends
No dividends were paid or declared during the financial period under review.
7. Change to the Board of Directors
Dr A Parker has resigned from the Board of Directors from 1 January 2013.
8. Future prospects
The trading conditions remained tight during the reporting period, but a special initiative to reduce the vacancies has started to bear fruit and this
should have a positive influence on the results in the remaining period.
Johannesburg
20 March 2013
Directors
R S Wilkinson (Independent Non-executive Chairman), F M Viruly (Independent Non-executive),
A C Gmeiner (Non-executive), F Gmeiner (Managing Director), C B Nolte (Financial Director)
Company secretary and registered office
Corporate Governance Facilitators CC
Transfer office
Computershare Investor Services (Pty) Limited
Sponsor
Arcay Moela Sponsors (Pty) Limited
Date: 20/03/2013 03:59:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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