| Thu 7 Mar 2002, 0:00 | | Rand Leases Properties Limited - Unaudited Interim |
|
Months Ended 31 December 2001
Share code : RPR
ISIN : ZAE000028254
RAND LEASES PROPERTIES LIMITED
Unaudited Interim Results for the six months ended 31 December 2001
Incorporated in the Republic of South Africa
Registration Number: 1978/000870/06
(The Company)
HIGHLIGHTS
Maiden Interim distribution of 11 cents per unit declared
Acquisition of Fourteen "A" grade office buildings
Vacancy factor - 2,6%
Interest rates on 86% of bond liability fixed
Consolidated Income Statement
Six Months Ended Year Ended
31 Dec 2001 31 Dec 2000 30 Jun 2001
R000's R000's R000's
Revenue 72 080 17 208 83 563
Income from investment buildings 17 396 4 763 13 744
Income from other operations 4 518 6 693 16 306
Unrealised surplus on revaluation
of investment properties - - 3 724
Other operating expenses (2 237) (2 363) (12 213)
Profit from operations 19 677 9 093 21 561
Net interest expense (12 839) (2 913) (10 627)
Profit before distribution to
unit holders 6 838 6 180 10 934
Debenture interest (6 650) - (10 556)
Profit before taxation 188 6 180 378
Taxation - - 756
Profit after taxation 188 6 180 1 134
Headline earnings per linked
unit (cents) 13,22 16,87 31,85
Fully diluted earnings per
linked unit (cents) 11,31 16,42 30,73
Distribution per linked
unit (cents) 11,00 - 22,50
Weighted average linked units
in issue - 000's 51 733 36 644 38 034
Linked units in issue - 000's 60 453 37 644 44 030
Consolidated Balance Sheet
31 Dec 2001 31 Dec 2000 30 Jun 2001
R000's R000's R000's
ASSETS
Non-current assets 443 017 182 723 230 373
Fixed assets 1 578 1 036 1 094
Investment Property 374 003 114 175 163 588
Marketable securities - 292 75
Development Property 64 766 67 220 64 946
Deferred taxation 2 670 - 670
Current assets 22 042 15 652 26 250
Trade and other receivables 20 686 12 123 24 702
Cash and bank balances 1 356 3 529 1 548
Total assets 465 059 198 375 256 623 0
EQUITY AND LIABILITIES
Capital and reserves 98 862 74 154 77 830
Non-current liabilities 295 833 107 299 137 170
Long term liabilities -
debentures 36 877 22 963 26 858
Long term liabilities - bonds 258 333 83 330 109 689
Deferred taxation liability 623 1 006 623
Current liabilities 70 364 16 922 41 623
Bank overdraft 10 906 - 4 290
Trade and other payables 7 768 16 254 17 942
Deferred Liability 44 197 - 8 680
Taxation payable 804 506 804
Shareholders for dividends
and debenture interest 6 689 162 9 907
Total equity and liabilities 465 059 198 375 256 623
Consolidated Cash Flow Statement
Six Months Ended Year ended
31 Dec 2001 31 Dec 2000 30 Jun 2001
R000's R000's R000's
Cash flow from operating
activities (13 119) (2 002) (2 832)
Cash flow from investing
activities (210 235) (71 064) (138 628)
Cash flow from financing
activities 216 546 46 590 108 713
Net decrease in cash and cash
equivalents (6 808) (26 476) (32 747)
Cash and cash equivalents at
beginning of period (2 742) 0 30 005
Cash and cash equivalents at
end of period (9 550) (26 476) (2 742)
Statement of changes in equity
Equity at beginning of period 77 830 62 647 76 388
Issue of new shares 16 258 4 468 (1 306)
Net income for the period 188 - 1 134
Non-distributable Reserve 4 586 - -
Adjustment to share premium - - 1 689
Dividends to linked units - - (75)
Equity at end of period 98 862 67 115 77 830
Property market
The oversupply in decentralised areas has reduced rental levels. A slow down
in economic activity has reduced demand for office space. The company is in
the fortunate position of having a low lease expiry profile of 11,4% in
calendar 2002 and 12,7% in calendar 2003. This will mitigate the effect of
the downturn on the Company.
Operations
Rental Portfolio
The Company is earning the benefits of the strategy of re-deployment to
quality recurring income with a contribution of R17,3 million from these
sources during the period under review. The rental portfolio has been
expanded, with the acquisition of fourteen buildings in Bryanston, Midrand,
Sandton, Hyde Park and Houghton, for a total consideration of R205,8
million. These acquisitions were funded by a combination of debt and an
issue of shares. The effective date of the transaction was 15 September
2001.
Interest Rate
The company has fixed interest rates on 86.4 % of its investment property
bonds. The average interest rate on its bond debt is 14.4%. The interest
rate was fixed for a period of two years. 19% of the fixed rates expire
during September 2002.
Vacancy
The total vacancy factor in the portfolio is 2 451 square metres or 2.6 % of
total lettable area.
Development Activities
The first building on the Hackle Brooke Office Park at Craighall was
completed in September 2001. A total of seven sites are available for sale
and construction. Marketing of the office park has commenced and a number of
exploratory enquiries have already been received.
Low Cost Housing
During the period under review a further 2 414 houses were completed and
handed over to beneficiaries. The total now completed and handed over for
the project is 10 314.
The Company has reached agreement to acquire an additional 685 hectares of
land for R7 million next to the existing development, for future
developments. Planning on this additional land, which is expected to extend
the life of the Bram Fischerville project for over two years, has commenced.
Results of operations
Income from operations for the six months under review of R19,7 million is
R10,6 million higher than the corresponding period in the previous financial
year. An increased contribution was received from the investment property
portfolio acquired. Transactional income from development activities is
lower than the previous year. The income available for distribution of R6,8
million is an increase of 10.6% over the corresponding period in the
previous year.
Prospects
Income for the second six months is expected to be higher than the period
under review as the Company will have the benefit of the investment property
portfolio acquired for the full period. A higher contribution to earnings
from the low cost housing project is anticipated.
Declaration of Dividends and Debenture Interest
Notice is hereby given of the declaration of a distribution in respect of
the period ended 31 December 2001 which amounts to 11,0 cents per linked
unit. The last date to trade cum distribution will be Wednesday, 20 March
2002, and the units will commence trading ex distribution from Friday, 22
March 2002 with the record date being Thursday, 28 March 2002. Payment will
be effected on Tuesday, 2 April 2002.
Share certificates may not be dematerialised or rematerialised between
Thursday, 14 March and Thursday, 28 March 2002, both days inclusive.
By order of the Board
