| Thu 16 Aug 2001, 0:00 | | Sycom Property Fund - Unaudited Group Results |
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Sycom Property Fund
UNAUDITED GROUP results and distribution declaration for the six months
ended 30 JUNE 2001
6 months to 6 months to
30 June 2001 30 June 2000
INCOME STATEMENT (R'000) (R'000)
Revenue 98 182 74 327
Rental income 92 020 69 025
Interest received 6 162 5 302
Expenses 31 874 25 095
Auditors' remuneration 61 54
Property expenses 28 696 23 147
Service charge 3 117 1 894
Net income for the period
from ordinary activities 66 308 49 232
Increase/(decrease) in unrealised
surplus on revaluation of
investments in fixed
property companies 1 319 (511)
Transfer (to)/from
non-distributable reserve (1 319) 511
Available for distribution 66 308 49 232
Distribution 66 308 49 232
No. 30 of 46,96 cents per
unit paid September 2000 - 49 232
No. 32 of 50,06 cents per
unit proposed September 2001 66 308 -
Units in issue 132 446 104 833
Earnings/Distribution
per unit (cents) 50,06 46,96
STATEMENT OF CHANGES IN
UNITHOLDERS' FUNDS
Capital 866 618 648 951
Balance at beginning of period 648 951 648 951
New issue of units 29 June 2001 217 667 -
Non distributable reserve 179 166 85 568
Balance at beginning of period 177 847 86 079
Increase/(decrease) in
unrealised surplus on
revaluation of
investments in fixed
property companies 1 319 (511)
Distributable reserve
- major maintenance 6 177 6 502
Total Unitholders' funds 1 051 961 741 021
BALANCE SHEET 30 June 2001 30 June 2000
Assets
Fixed property 1 025 887 690 884
Current assets 106 980 106 409
1 132 867 797 293
Unitholders' funds
and liabilities
Capital and reserves 1 051 961 741 021
Current liabilities 80 906 56 272
1 132 867 797 293
1. ISSUE OF UNITS FOR PROPERTIES
In terms of recent press announcements and the circular to unitholders dated
14 June 2001,the Fund acquired certain property interests from the AECI
Pension Fund ("AECI-PF") and the results are included with effect from 1
January 2001. The purchase consideration comprised 27 612 723 Sycom units at
an issue price of 789 cents per unit, totalling Rm217,78. The properties
were revalued at date of acquisition resulting in a net unrealised surplus
of Rm1,32 being transferred to non-distributable reserve.
2. RESULTS
Sycom's net distributable income for the six month period ended
30 June 2001 amounted to 50,06 cents per unit, an increase of 6,6% over the
distribution for the same period last year of 46,96 cents per unit.
Excluding the net income from the AECI-PF properties, pro forma
distributions represent an improvement of 7,2% over the previous year. No
further maintenance reserves were created during the period and the reserve
balance remains unchanged at Rm6,18. The current net asset value of Sycom
units stands at 790 cents per unit. The closing market price of the units at
30 June 2001 of 870 cents per unit represents a premium of 10,13% to net
asset value.
3. PROPERTY PORTFOLIO
In accordance with the Fund's strategy to dispose of certain identified
properties, agreements of sale have been entered into in respect of Wierda
Manor (Sandton) and Rank Xerox House (Sunnyside, Pretoria).
A purchase agreement has been concluded to acquire a 50% undivided share in
the Fourways Crossing Retail Centre (Fourways, Sandton) for Rm113,40 to be
settled by the issue of 14 354 103 Sycom units at 790 cents per unit to the
vendors. This property is expected to show an initial yield of 12,5%.
At 30 June the Fund's capital balance stood at Rm23,78. Outstanding proceeds
from the aforementioned sale of properties should raise a further Rm13,54.
Certain of these funds are committed to various projects, which include the
following:
Harrowdene Office Park (Woodmead, Sandton) - Rm12,58 representing the
residual payments in respect of a 7 100m2, 5th phase development of this
office park. An agreement has been concluded for the letting of these
premises to a single tenant for eight years commencing 1 October 2001.
Southgate Mall (Southgate, Johannesburg) - Rm14,0 as Sycom's contribution
to an upgrade of this centre at a total cost of Rm87,5.
CU House ( Hatfield, Pretoria) - A Rm2,2 refurbishment of this property.
The Murray and Roberts headlease over the office component at Sammy Marks'
Square has been terminated. The cancellation of this headlease, which still
had approximately 6 years to run, was initiated by Murray and Roberts, and
reasonable settlement compensation in this regard was negotiated.
Vacancy levels have deteriorated from 8,0% to 9,9% over the six-month
period, primarily as a result of the cancellation of the Murray and Roberts
headlease.
4. PROSPECTS
Over the next twelve months the portfolio has a reasonably low expiry
profile of 13,2% of rentable area. Certain areas, and in particular the
Sandton node continue to show signs of significant oversupply of office
space. Given the sale of Wierda Manor, Sycom's exposure to the immediate
Sandton area will have reduced to two buildings namely, Boart Place and FNB
House, both of which have reasonably long-term leases in place.
Management is of the view that the forecast for the year to December 2001 of
exceeding the previous year's 6,1% growth in earnings will still be
achieved.
5. DISTRIBUTION DECLARATION
Notice is hereby given of the declaration of distribution No.32 in respect
of the six months to 30 June 2001. The distribution amounts to 50,06 cents
per unit and is payable to unitholders registered as such in the books of
the Fund at the close of business on Friday, 31 August 2001. Electronic
transfer of distributions to unitholders' accounts and, where applicable,
posting of distribution cheques, will be effected on or about 14 September
2001.
6. STRATE
In terms of Strate, the Fund is to dematerialize its scrip on 24 September
2001 and further details of this process will be provided to unitholders by
means of a separate circular.
By order of the Board
NIB PROPERTY FUND MANAGERS LIMITED
(Registration number 1986/002756/06)
15 August 2001
Registered Office:
Ground Floor, Corovest House,
Grayston Ridge Office Park,
Cnr Grayston Drive and Katherine Street, Sandown, 2146
PO Box 4795, Rivonia, 2128
Transfer Secretaries:
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
