| Wed 13 Feb 2002, 0:00 | | Sycom Property Fund - Audited Group Results And Di |
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The Year Ended
SYCOM PROPERTY FUND
Share Code : SYC
ISIN Code : ZAE000019303
AUDITED GROUP RESULTS AND DISTRIBUTION DECLARATION FOR THE YEAR ENDED
31 DECEMBER 2001
12 months to 12 months to
31-Dec-01 31-Dec-00
INCOME STATEMENT (R'000) (R'000)
Revenue 218 763 149 553
Rental income 208 126 138 967
Net interest received 10 637 10 586
Expenses 65 910 48 520
Auditors' remuneration 512 419
Property expenses 58 786 44 016
Service charge 6 612 4 085
Net income for the year
from ordinary activities 152 853 101 033
Exceptional items 77 063 91 768
Realised deficit on disposal of
investments in fixed properties (469) (6 639)
Increase in unrealised surplus
on revaluation of investments
in fixed property companies 77 532 98 407
Net income for the year 229 916 192 801
Net transfers to reserve (85 737) (91 060)
Transferred to non-distributable
reserve (77 063) (91 768)
Transferred (to)/from
distributable reserve (8 674) 708
Available for distribution 144 179 101 741
Distribution 144 179 101 741
No. 30 of 46,96 cents per
unit paid September 2000 - 49 229
No. 31 of 50,09 cents per
unit paid March 2001 - 52 512
No. 32 of 50,06 cents per
unit paid September 2001 66 302 -
No. 33 of 53,05 cents per
unit proposed March 2002 77 877 -
Units in issue 146 800 104 833
Headline earnings per unit (cents) 109,43 96,38
Earnings per unit (cents) 164,60 183,91
Income distribution per
unit (cents) 103,11 97,05
CASH FLOW STATEMENTS
31-Dec-01 31-Dec-00
(R'000) (R'000)
Cash Flows from Operating
activities
Cash received from rentals 203 553 131 289
Cash paid to suppliers and
service providers (66 316) (47 949)
Cash generated by operations 137 237 83 340
interest received 11 741 10 586
Interest paid (1 104) -
Cash generated by operating
activities 147 874 93 926
Distributions paid (118 814) (98 834)
Net cash inflow / (outflow)
from operating activies 29 060 (4 908)
Cash flows from investing
activities
Cash inflow on disposal of
investments in fixed property 11 500 43 166
Purchases of fixed property (30 253) (48 980)
Net cash outflow from
investing activities (18 753) (5 814)
Cash flows from financing
activities
New unit issue expenses (232) -
Net cash outflow from
financing activities (232) -
Net increase / (decrease)
in cash and cash resources 10 075 (10 722)
Cash resources at beginning
of the year 75 699 86 421
Cash resources at end of
the year 85 774 75 699
STATEMENT OF CHANGES IN
UNITHOLDERS' FUNDS
Capital Non-distri- Distri- reserve Total
butable butable
reserve
Invest- Retained Major
ments
reserve income maintenance
reserve
Balance at
31 December 2000 648 951 177 847 6 177 832 975
Issue of 27 612 723
units-29 June 2001 217 776 217 776
Issue of 14 354 103
units-6 September
2001 113 397 113 397
Associated share
issue expenses (232) (232)
Net income for year 229 916 229 916
Realised deficit on
disposal of
investment in fixed
properties (469) 469
Increase in
unrealised surplus
on revaluation of
investment in fixed
property companies 77 532 (77 532)
Transfer to major
maintenance reserve (8 674) 8 674
Distributions:
No. 32 of 50,06
cents per unit paid
September 2001 (66 302) (66 302)
No. 33 of 53,05
cents per unit
proposed March 2002 (77 877) (77 877)
Balance at
31 December 2001 979 892 254 910 14 851 1 249 653
BALANCE SHEET
As at As at
31-Dec-01 31-Dec-00
(R'000) (R'000)
Assets
Fixed property 1 217 692 790 703
Current assets 120 696 105 847
1 338 388 896 550
Unitholders' funds and liabilities
Capital and reserves 1 249 653 832 975
Current liabilities 88 735 63 575
1 338 388 896 550
ACCOUNTING POLICIES
There has been no change in the accounting policies during the year.
1. RESULTS
Sycom's net distributable income for the year ended 31 December 2001
amounted to 103,11 cents per unit, an increase of 6,2% over the previous
year's distribution of 97,05 cents per unit and in line with management's
forecast.
As at 31 December 2000, major maintenance reserves stood at Rm6,18. For the
twelve months ended 31 December 2001, transfers to the reserve amounted to
Rm8,95, and amounts written back on sold properties totalled Rm0,28,
resulting in a balance of Rm14,85.
The portfolio was again independently revalued in December 2001 resulting in
a further increase in the unrealised surplus on investment in fixed property
companies of Rm77,53 to a total of Rm266,75.
The net asset value of the Fund now stands at 841 cents per unit compared to
789 cents per unit at 31 December 2000. The current trading price of around
810 cents per unit represents a discount of 3,7% to net asset value.
2. PROPERTY PORTFOLIO
As reported on in previous announcements, the Fund acquired properties
totalling Rm311,18 during the year, through the issue of 41,97m new units.
The sale of Wierda Manor (office building - Sandton) was concluded for a net
consideration of Rm11,1 compared to a book value of Rm12,0. An agreement of
sale has been entered into in respect of Sycom's portion of Sammy Marks'
Square (retail and office complex - Pretoria CBD), which still requires
certain suspensive conditions to be met.
At 31 December 2001 the Fund's capital cash balance stood at Rm21,08. These
funds are committed to various projects, which include:
- Harrowdene Office Park (Woodmead, Sandton) - Rm4,79 residual payments in
respect of the 7 100m_ fifth phase completed earlier in the year.
- Southgate Mall (Southgate, Johannesburg) - Rm13,65 as Sycom's contribution
to an Rm80,0 refurbishment and extension of this shopping centre.
3. PROSPECTS
Over the next twelve months, the portfolio has a reasonable expiry profile
of 12,0% by area with the office component having the largest exposure. The
letting market continues to show signs of stress and requires an intensive
focus on tenant retention, marketing and letting to ensure that vacancy
levels are at least contained at current levels. To this end, marketing
campaigns coupled with refurbishment programmes for a number of the Fund's
buildings have been concluded and a number of negotiations with prospective
new tenants have been initiated.
Given the weaker market conditions, growth in distributions for the year to
31 December 2002 is likely to be around 3,0%.
4. BORROWING CAPABILITY
In December 2001 a ballot of unitholders was held to approve, inter-alia,
the introduction of borrowing up to 30% of market capitalisation. The
requisite majority to approve the ballot was obtained and whilst the
borrowing capability has not been utilised to date, it is envisaged that
this will stand the Fund in good stead in the future.
5. DISTRIBUTION DECLARATION
Notice is hereby given of the declaration of distribution No. 33 in respect
of the six months to 31 December 2001 of 53,05 cents per unit. The last
date to trade cum dividend will Friday, 1 March 2002 and the units will
commence trading ex-dividend from the commencement of business on Monday, 4
March 2002. The record date is Friday, 8 March 2002 and payment will be
made to unitholders on or about Monday, 11 March 2002.
Unitholders may not dematerialise or re-materialise their unit between
Monday, 25 February 2002 and Friday, 8 March 2002, both days inclusive.
By order of the Board
NIB PROPERTY FUND MANAGERS LIMITED
(Registration number 1986/002756/06)
12 February 2002
Registered Office:
Ground Floor, Corovest House,
Grayston Ridge Office Park,
Cnr Grayston Drive and Katherine Street, Sandown, 2146
P.O. Box 4795, Rivonia, 2128
Auditors:
Deloitte & Touche
Deloitte & Touche Place
The Woodlands, Woodlands Drive
Woodmead, Sandton
Transfer Secretaries:
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg, 2001
P.O. Box 1053, Johannesburg, 2000
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