| Thu 14 Mar 2002, 0:00 | | Hyprop Investments Limited - Audited Results For |
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2001
Hyprop Investments Limited
(Registration number 1987/00528/06)
Share code HYP ISIN code ZAE 000003437
AUDITED RESULTS
for the year ended 31 December 2001
8% increase in distribution
68% increase in operating income
GROUP INCOME STATEMENT
Note 31 Dec 2001 31 Dec 2000 Growth
(R000) (R000) %
Turnover 89 443 56 521
Operating income 71 978 42 754 68
Finance income 751 7 617
Interest received 4 529 7 617
Interest paid (3 778) -
Reversal of provision
for anticipated head
lease losses 272
Income before
distribution 72 729 50 643 44
Interest (72 021) (49 260)
Debenture interest
paid 1.0 (72 726) (50 628)
Interest capitalised 705 1 368
Income before taxation 708 1 383
Secondary tax on companies (18) (13)
Income after taxation 690 1 370
Income from associate 29 8
Net income 719 1 378
Earnings per combined
unit (cents) 127 510* 119 943 6
Headline earnings per
combined unit (cents) 127 510* 119 316
*(Based on weighted
average combined units)
Total combined units
in issue 64 719 478 43 358 756
Combined units in
issue at beginning of
year 43 358 756 43 358 756
Additional combined
units issued on 25 Sep-
tember 2001 ranking
pari passu from 1 May 2001 21 360 722 -
Weighted average combined
units 57 599 237 43 358 756
Note 1.0 Distribution details
Dividends Total distri-
Interest on on ordinar bution per
debentures shares combined unit
(cents per (cents per (cents per
unit) unit) unit)
Total distribution for
the year ended
31 December 2000 116,766 0,234 117,000
Distribution number
25 for the six months
ended 30 June 2000 53,892 0,108 54,000
Distribution number
26 for the six months
ended 31 December 2000 62,874 0,126 63,000
Total distribution for
the year ended
31 December 2001 126,107 0,253 126,360
Distribution number
27 for the four months
ended 30 April 2001 41,617 0,083 41,700
Distribution number
28 for the eight months
ended 31 December 2001 84,490 0,170 84,660
Hyprop paid an interim distribution in respect of the four-month period 1
January 2001 to 30 April 2001, of 41,70 cents per combined unit to
unitholders registered on 13 July 2001 which excluded the additional
combined units. The final distribution of 84,66 cents will be made in
respect of the eight-month period 1 May 2001 to 31 December 2001 to all
unitholders (including the holders of the additional combined units)
registered on 28 March 2002.
ABRIDGED GROUP CASH FLOW STATEMENT
31 Dec 2001 31 Dec 2000
(R000) (R000)
Cash flow from operating activities 37 944 1 195
Cash generated from operations 82 602 42 157
Interest income 4 529 7 617
Finance charges (3 778) -
Distribution to unitholders (45 396) (48 557)
Taxation (13) (22)
Cash flow from investing activities (424 686) (34 239)
Cash flow from financing activities 334 954 110
Net increase in cash and cash
equivalents (51 788) (32 934)
Cash and cash equivalents at beginning
of the period 56 520 89 454
Cash and cash equivalents at end of
the year 4 732 56 520
GROUP BALANCE SHEET
Assets
Non-current assets 699 355 277 203
Tangible fixed assets 698 746 276 603
Financial assets 609 600
Current assets 6 955 58 418
Trade and other receivables 2 223 1 898
Cash and cash equivalents 4 732 56 520
Total assets 706 310 335 621
Equity and liabilities
Equity capital and reserves 63 834 63 047
Ordinary share capital 648 434
Non-distributable reserves 57 582 57 582
Retained income 5 604 5 031
Non-current liabilities 571 289 236 549
Debentures 319 067 213 759
Debenture premium 144 981 22 790
Long-term liabilities 107 241 -
Current liabilities 71 187 36 025
Trade and other payables 16 376 8 695
Taxation 19 14
Unitholders for distribution 54 792 27 316
Total equity and liabilities 706 310 335 621
Net asset value per combined unit
(cents) 815,65 690,97
GROUP STATEMENT OF CHANGES IN EQUITY
Share Non-distribu- Retained
capital table reserve income Total
(R000) (R000) (R000) (R000)
Balance at 1 January 2000 434 57 310 4 026 61 770
Income after taxation for
year ended 31 December 2000 1 378 1 378
Dividends (101) (101)
Reversal of provision for
Anticipated head lease losses 272 (272) 0
Balance at 1 January 2001 434 57 582 5 031 63 047
Issue of ordinary share
Capital 214 214
Income after taxation for year ended
31 December 2001 719 719
Dividends (146) (146)
Balance as at 31 December
2001 648 57 582 5 604 63 834
Accounting policies
The audited financial statements have been prepared in accordance with South
African Statements of Generally Accepted Accounting Practice. The accounting
policies used in their preparation are consistent with those used in the
annual financial statements for the year ended 31 December 2000.
1 Review of results
Hyprop Investments Limited ("Hyprop") is pleased to report that it has again
achieved its objective of sustained income growth to combined unitholders.
This has been achieved through earnings that are derived from the ownership
of quality real estate assets.
Operating income increased by 68% primarily as a consequence of the merger
with Kirchmann-Hurry Properties Limited ("KH Props").
Distribution for the year ended 31 December 2001 amounted to 126,36 cents
per combined unit, an increase of 8% on that of the previous year of 117
cents per combined unit and in line with management's forecast. The
calculation of the earnings per combined unit is based on a weighted average
of 57 599 237 combined units.
2 New business and developments
During the year Hyprop successfully concluded the following transactions:
2.1 The merger with KH Props as a going concern with effect from 1 May 2001.
The acquisition was settled through the issue of 21 360 722 additional
combined units on 25 September 2001 at an issue price of 1 074 cents per
combined unit. This resulted in a 49% increase in the market capitalisation
of Hyprop.
2.2 The acquisition of an undivided one-third share in The Glen Shopping
Centre ("The Glen") for a purchase consideration of R95 million, equating to
an initial forward yield of 12%. This modern regional shopping centre is
situated in a prime location in the southern suburbs of Johannesburg.
2.3 The completion of a sixth building within the Morningview Office Park in
December 2001 at a total cost of R17 million. The building comprises 2 800
square metres of rentable area and was fully let on completion.
3 Vacancies
Vacancies by area increased from 6% in December 2000 to 11% in December 2001
as a consequence of the general deterioration in the office market. Hyprop
has nevertheless managed to maintain vacancies at lower than industry levels
for comparative locations.
4 Borrowings
Hyprop, for the first time, took advantage of its borrowing capabilities to
partly fund the KH Props merger and The Glen acquisition.
At 31 December 2001 Hyprop's borrowings amounted to R107 million. Hyprop has
borrowing facilities totalling R300 million, spread between Standard Bank
Properties and Absa Bank Limited, of which R193 million was unutilised at
year-end. Hyprop continuously applies all surplus cash to its existing
borrowing facilities, resulting in reduced gearing and interest rate costs.
A selection of interest rate products ranging from short-term transfer rates
to term funding rates is utilised. At year-end Hyprop had a 14% debt-to-
value ratio based on the directors' valuation of the total portfolio.
5 Net asset value
The net asset value of Hyprop, based on the directors' valuation of the
total property portfolio as at 31 December 2001, was 1 173 cents per
combined unit.
6 Prospects
The retail portfolio has a reasonable expiry profile of 12% by area for the
next twelve months and good progress has already been made in the renewal of
leases. Due to its unique position, this component of the portfolio
continues to perform strongly.
The office market in the northern suburbs of Johannesburg is over-supplied
and as a result rental levels have weakened considerably. In addition to
proactively marketing for new tenants, Hyprop is engaged in a campaign to
retain existing tenants.
Hyprop will continue with its strategy of actively managing its property
assets. Where appropriate, selected disposals will be undertaken whilst new
investment opportunities that will contribute to the growth and
diversification of the portfolio will be sought.
The Board anticipates growth in distribution to combined unitholders during
the year ending 31 December 2002 notwithstanding current economic
conditions. It is, however, unlikely that the growth in distribution
achieved in the previous year will be maintained.
7 Directorate
The following changes have been made to the Board of Directors.
Appointments Date
PG Prinsloo (Managing Director) 1 October 2001
M Wainer 12 March 2002
Resignations
T Schultze (Managing Director) 1 October 2001
G Itzikowitz 11 March 2002
8 Declaration of dividend and payment of debenture interest
Notice is hereby given of the declaration of distribution no 28 in respect
of the eight months to 31 December 2001 of 84,66 cents per combined unit.
The last day to trade cum dividend will be Thursday, 28 March 2002. The
combined units will trade ex dividend as from Tuesday, 2 April 2002. The
record date will be Friday, 5 April 2002 and the payment date will be
Monday, 8 April 2002. Combined unitholders may not dematerialise or
rematerialise their combined units between Monday, 20 March 2002 and Friday,
5 April 2002.
On behalf of the Board
PF Kirchmann Chairman PG Prinsloo Managing Director
12 March 2002
Registered office Transfer secretaries
Hyde Park Corner Shopping Centre Mercantile Registrars Limited
Jan Smuts Avenue Sandton 2196 11 Diagonal Street
PO Box 41257 PO Box 1053
Craighall 2024 Johannesburg 2000
Hyprop Investments Limited
(Registration no 1987/05284/06)
("Hyprop")
Share code HYP ISIN code ZAE0000034
37
AMENDMENT OF DATES RELATING TO THE HYPROP DISTRIBUTION
With reference to the audited results of Hyprop published on 14 March 2002
("the results announcement"), combined unitholders are advised that, due to
the public holidays in March and April 2002, it is necessary to amend the
dates contained in paragraph 8 of the results announcement.
Declaration of dividend and payment of debenture interest
Notice is hereby given of dividend declaration number 28 of 0,170 cents per
share and debenture interest payment number 28 of 84,490 cents per debenture
for the income distribution period 1 May 2001 to 31 December 2001. The
distribution amounts to 84,660 cents per combined unit. The last day to
trade cum dividend will be Wednesday, 27 March 2002. The combined units will
trade ex dividend as from Thursday, 28 March 2002. The record date will be
Friday, 5 April 2002 and the payment date will be Monday, 8 April 2002.
Combined unitholders may not dematerialise or rematerialise their combined
units between Wednesday, 20 March 2002 and Friday, 5 April 2002, both days
inclusive.
Hyprop Investments Limited
14 March 2002
