| Thu 8 Nov 2001, 0:00 | | Allan Gray Property Trust - Audited Results For Th |
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September 2001
Shortname: Grayprop
Code: GRY
ISIN: ZAE000013165
Audited results for the twelve months ended 30 September 2001
2001 2000
INCOME STATEMENT (R000) (R000)
Income 280 508 261 955
Rent 265 325 244 595
Interest 15 183 17 360
Expenditure 99 136 90 277
Property expenses 90 346 83 472
Audit fees 613 386
Depreciation 230 166
Service charge 7 947 6 253
Headline earnings 181 372 171 678
Capital items 86 175 72 991
Realised surplus on disposal of fixed - 1 713
properties
Unrealised surplus on revaluation of 86 175 71 278
fixed properties
Net profit 267 547 244 669
Transfer to Reserves 83 031 74 609
Transfer (from)/to maintenance (3 144) 1 618
reserve
Transfer to capital reserve - 1 713
Transfer to revaluation reserve 86 175 71 278
Income available for distribution 184 516 170 060
Interim paid 88 267 82 382
Final declared 96 249 87 678
184 516 170 060
Net profit per unit (cents) 44.5 41.6
Headline earnings per unit (cents) 30.2 29.2
Income distribution per unit 30.7 28.9
(cents)
Interim distribution per unit 15.0 14.0
(cents)
Final distribution per unit (cents) 15.7 14.9
BALANCE SHEET
Assets
Non-current assets
Fixed properties 2 205 243 1 201 276
Current assets 224 977 167 093
Accounts receivable 31 075 21 133
Cash and cash equivalents 193 902 145 960
Total assets 2 430 220 1 368 369
Unitholders' funds and liabilities
Unitholders' funds and non-current 2 267 044 1 262 450
liabilities
Capital of the Fund 1 607 548 900 542
Capital reserve 110 884 110 884
Revaluation reserve 324 442 238 267
Maintenance reserve 9 597 12 741
Distributable reserve 16 16
Interest bearing liability 214 557 -
Current liabilities 163 176 105 919
Accounts payable 46 578 18 241
Unitholders for distribution 116 598 87 678
Total unitholders' funds and 2 430 220 1 368 369
liabilities
STATEMENT OF CHANGES IN UNITHOLDER'S FUNDS
Capital of the Fund
Balance at beginning of the year 900 542 900 542
Issued during the year 707 006 -
Balance at end of the year 1 607 548 900 542
Capital Reserve
Balance at beginning of the year 110 884 109 171
Net surplus on disposal of fixed - 1 713
properties
Balance at end of the year 110 884 110 884
Revaluation Reserve
Balance at beginning of the year 238 267 166 989
Revaluation of fixed properties 86 175 71 278
Balance at end of the year 324 442 238 267
Maintenance Reserve
Balance at beginning of the year 12 741 11 123
Transfer (to) / from distributable (3 144) 1 618
reserves
Balance at end of the year 9 597 12 741
Distributable Reserves
Balance at beginning of the year 16 16
Net income for the year 267 547 244 669
Transfer to capital reserve - (1 713)
Transfer to revaluation reserve (86 175) (71 278)
Transfer from / (to) maintenance 3 144 (1 618)
reserve
Income distributions (184 516) (170 060)
Balance at end of the year 16 16
Total unitholders' funds 2 052 487 1 262 450
CASH FLOW STATEMENT
Cash effects from operating
activities
Cash generated from operations 166 419 154 484
Change in working capital 7 516 4 939
Cash available from operating 173 935 159 423
activities
Interest received 15 183 17 360
Income distributions (176 406) (165 352)
12 712 11 431
Cash effects of investing
activities
Additions to investment property (99 758) (30 071)
Net proceeds from disposal of fixed - 7 430
properties
Acquisition of Allan Gray Property (647 234) -
Investments Limited
(746 992) (22 641)
Cash effects of financing
activities
Units issued during the year 707 006 -
707 006 -
Net decrease in cash and cash (27 274) (11 210)
equivalents
Cash and cash equivalents at 145 960 157 170
beginning of the year
Cash and cash equivalents acquired 75 216 -
during the year
Cash and cash equivalents at end of 193 902 145 960
the year
Comments
Distribution
Allan Gray Property Trust's distribution for the financial year amounted to
30,7 cents per unit, an increase of 6,2 percent over last year's
distribution of 28,9 cents.
The distribution for the last six months of the year of 15,7 cents per unit
was 5,4 percent better than the corresponding period of 2000.
Accounting Policies
The results are prepared in accordance with South African Statements of
Generally Accepted Accounting Practise and on a basis consistent with that
of the interim results. The changes from the previous financial year is:
To value fixed properties at market value and the net difference is
transferred to a revaluation reserve.
A maintenance reserve is maintained under unitholders' funds, the net
movement in the reserve is accounted for, after the determination of net
profit, in the calculation of the distributable income.
Changes to portfolio
Unitholders have approved a change to the trust deed of the Trust to allow
it to enter limited long-term borrowings agreements.
The following changes have occurred in the portfolio during the past year:
With effect from 1 April 2001 the 75 percent undivided share in the Randburg
Waterfront and the 50 percent undivided share of Bruma Boardwalk not owned
by the Trust were purchased R59,8 million and settled with the issue of 24
609 054 units at 243 cents.
With effect from 30 September 2001 Allan Gray Property Investments Limited
("Grayvest") was purchased R647,2 million and settled with the issue of 260
981 613 units at 248 cents.
Subsequent to year-end the following changes have occurred:
A further 19,9 percent undivided share in Westgate Shopping Centre was
purchased with effect from 1 October 2001 taking Allan Gray Property Trust's
interests therein to 41,3 percent. The purchase consideration of R141,2
million was settled with the issue of 37 690 964 units at 268 cents and
R40,2 million in cash.
A further 12,9 percent of the Southgate Shopping Centre and a further 15,9
percent of the Southgate Value Mart were purchased with effect from 1
October 2001 taking Allan Gray Property Trust's interests therein to 16,0
percent and 19,0 percent respectively. The purchase consideration of R48,8
million will be settled with the issue of 19 133 928 units at 255 cents.
Taking these changes into account, the sectoral spread of the portfolio, as
valued by Rode and Associates cc at 30 September 2001, comprises the
following:
Sector R cents/u 2001 Forwa 2000
milli nit rd EY
on
Retail 1 578 170 65% 12,8% 60%
Office Blocks 479 51 20% 11,3% 27%
Industrial 216 23 9% 14,6% 8%
Other 134 15 6% 15,8% 5%
Total Property 2 407 259 100% 12,8% 100%
Long Term Borrowings -215 -23
Cash Resources 12 1
2 204 237
The valuation per unit is 14 percent higher than that of last year. This is
largely as a result of favourable acquisition terms, insofar as NAV is
concerned, of the Grayvest transaction. The old Allan Gray Property Trust
portfolio increased in value by 8 percent. The market rating of the
property portfolio in terms of the forward earnings yield has improved from
the 14,2 percent of last year due both to lower capitalisation rates and the
acquisition of the large dominant retail centres in Grayvest.
Also subsequent to year-end, agreement has been reached to sell the Trust's
Middestad property in Bloemfontein for R27 million net, as well as the BCG
property in Midrand for R19 million net.
Capital commitments at year end were R37,7 million which, after the proceeds
of the sales mentioned above, will leave uncommitted capital of R20,3
million.
Vacancy levels
Vacancy levels in terms of rentable area at 30 September were as follows
(percent):
Sector 2001 2000
Retail 6 4
Office Blocks 10 6
Industrial 10 0
Other 0 0
Total 7 4
Note: the 2001 numbers include the Grayvest properties.
By value the vacancies equate to 7 percent of potential rental income
compared with 4 percent at half year.
In the retail sector, 70 percent of the vacancies relate to the following
properties:
Bruma Boardwalk, where a potential sale is being negotiated
Middestad, which has been sold
Northmead, where a re-tenanting proposal is being investigated
Randburg Waterfront, where proposals are being evaluated to reduce the
reliance on entertainment by converting various premises to true retail and
strengthen the new demand from Randburg office workers who no longer choose
to shop in the CBD
Blue Route Mall, where the vacancies have been created to enable a
significant upgrade and re-tenanting of the centre, introducing national
tenants not currently represented
In the office sector significant vacancies by area and value are at Grayston
Ridge and Rosebank Corner. In the bulk of the office portfolio however,
demand is good, albeit at lower rentals than the current escalated lease
rentals.
In the industrial sector demand is sporadic but some positive lettings have
occurred. Significant vacancies are concentrated in Supreme Industrial Park
and the Jet Park portfolio.
Prospects
Budgeted distributable income for 2002 is substantially the same as for the
2001 year. Contributing to this is the purchase of properties during the
year at yields marginally below the overall portfolio yield, but which are
anticipated to add positively to earnings growth in the years to come.
By order of the Board
Allan Gray Property Trust Management Limited
(Reg No 1983/003324/06)
7 November 2001
Transfer Secretaries Secretary and registered
Mercantile Registrars Limited office
11 Diagonal Street Broll Property Group
Johannesburg (Proprietary) Limited
2001 4th Floor, 15 Baker Street,
Rosebank
Johannesburg, 2196
(PO Box 1455 Saxonwold, 2132)
Directors: WJC Mitchell (Chairman), JD Rainier (Managing), DM Nurek, WT
Fairhead, M Herdman, WM Kirchmann, E Osrin, S Shaw-Taylor
e-mail: info@allangray.co.za Website: www.allangray.co.za
