| Mon 29 Apr 2002, 0:00 | | S.a. Retail Properties - Audited Results And Distr |
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S A RETAIL PROPERTIES
AUDITED RESULTS AND DISTRIBUTION ANNOUNCEMENT
for the period 12 November 2001 to 31 March 2002
Registration number 1999/025764/06
Share code: SRL ISIN number: ZAE000034328
Website: www.saretail.co.za
BALANCE SHEET (R'000) 31.03.2002
Assets
Non-current assets
Investment properties 784 872
Current assets
Trade and other receivables 8 665
Bank balances and cash 45 008
53 673
TOTAL ASSETS 838 545
EQUITY AND LIABILITIES
Capital and reserves
Share capital and reserves 33 238
Debentures 762 528
Linked unitholders' interest 795 766
Non-current liabilities
Deferred taxation 38
Current liabilities
Trade and other payables 6 130
Taxation 8
Unitholders for distribution 36 603
42 741
TOTAL EQUITY AND LIABILITIES 838 545
INCOME STATEMENT (R'000) 12.11.2001
to
Notes 31.03.2002
Revenue 48 523
Net rental from properties 35 483
Investment income 1 167
Net profit before debenture interest 36 650
Debenture interest 36 527
Net profit before taxation 123
Taxation 47
Net profit attributable to
linked unitholders 76
Distribution per linked unit (cents) 2.2
Interest 23,95
Dividend 0,05
Total 24,00
Headline earnings per linked unit (cents) 2.2 24,00
Earnings per linked unit (cents) 2.2 24,00
CASH FLOW STATEMENT (R'000) 12.11.2001
to
31.03.2002
OPERATING ACTIVITIES
Cash received from customers 39 857
Cash paid to suppliers and employees (6 909)
Cash generated by operating activities 32 948
Investment income 1 167
Taxation paid (1)
34 114
INVESTING ACTIVITIES
Acquisition of investment properties (784 048)
Improvements to investment properties (824)
(784 872)
FINANCING ACTIVITIES
Share capital issued 2
Share premium arising on listing 33 236
Debentures issued on listing 762 528
795 766
Net increase in cash and cash equivalents 45 008
Cash and cash equivalents at beginning of the period -
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 45 008
STATEMENT OF CHANGES Share Share Distributable
IN EQUITY (R'000) capital premium reserves Total
On listing
15 November 2001 2 33 236 - 33 238
Net profit attributable
to linked
unitholders - - 76 76
Dividend declared - - (76) (76)
Balance at 31 March 2002 2 33 236 - 33 238
1. OTHER INFORMATION 31.03.2002
Linked units in issue 152 505 805
Net asset value (cents per linked unit)
(based on book values) 521
Listed market price (cents per linked unit) 440
Discount to net asset value 15,55%
Vacancy factor (based on lettable area) 5,7%
Guarantees in lieu of Municipal deposits (R'000) 1 195
2. NOTES TO THE FINANCIAL STATEMENTS
2.1 Accounting policies
These financial results are prepared in accordance with South African
Statements of Generally Accepted Accounting Practice on the historic cost
basis. These accounting policies are also consistent with those used in the
preparation of the company's prospectus on listing. No comparative amounts
are shown as this is the company's first period of trading.
2.2 Distribution and headline earnings attributable to linked unitholders
The distribution and headline earnings per linked unit for the period
12 November 2001 to 31 March 2002 is calculated as follows:
R'000 Cents per unit
Net profit attributable to linked
unitholders per income statement 76 0,05
Add: Debenture interest 36 527 23,95
Distribution and headline earnings
attributable to linked unitholders 36 603 24,00
3. COMMENTARY ON RESULTS
3.1 Results
S A Retail's net distributable income for the first trading period from 12
November 2001 to 31 March 2002 is 24,00 cents per unit, marginally ahead of
the expectation expressed in the prospectus.
3.2 Property portfolio
S A Retail was established in November 2001 to acquire, secure and manage
sustainable income from a focused retail portfolio of convenience shopping
centres in stable communities. In pursuit of this objective, S A Retail
acquired 17 neighbourhood and convenience shopping centres with 66% of its
income derived from South Africa's leading national retailers. Line shop
rental is generally assured where the trading density of the anchor tenants
is robust and growing. As the anchor tenants underpinning the portfolio are
amongst South Africa's leading retailers, the surrounding line shops are
likely to perform in line with the major anchor tenants.
There are two properties, Cambridge Downs Office Park in Sandton and Kyalami
Downs Business Park in Midrand, which are being marketed for disposal from
the portfolio. These two properties were acquired as part of a portfolio and
their sale is consistent with the company's investment policy.
The current portfolio vacancy factor is 5,7%. Refurbishment/upgrade
proposals for the two flagship properties, East Rand Galleria in Gauteng and
Eikestad Mall in Stellenbosch, are currently under consideration which, when
completed, will reduce the vacancy factor and enhance the strength of both
centres.
3.3 Prospects
Management seeks to grow the portfolio further by securing similar
properties to those already within the portfolio. The focus will remain upon
convenience shopping centres serving stable communities where the primary
and secondary spending capacity is unlikely to fluctuate greatly during
periods of general economic uncertainty.
General market conditions prevailing at present are difficult and are
affecting profitability in the industry generally. An anticipated further
increase in interest rates will further exacerbate trading conditions and
impact on the performance of the S A Retail's properties. It will be
challenging to grow earnings under these circumstances in the short term.
However, as the interest rate cycle turns and the South African economy
expands, S A Retail is well positioned to take advantage of rising rentals
coming off a modest market related base.
4. DECLARATION OF DIVIDEND AND INTEREST PAYMENT NUMBER 1
Notice is hereby given that dividend number 1 of 0,05 cents per ordinary
share and interest of 23,95 cents per debenture totalling 24,00 cents per
linked unit have been declared in respect of the income distribution period
12 November 2001 to 31 March 2002.
Last date to trade cum distribution Friday, 17 May 2002
Units will trade ex distribution Monday, 20 May 2002
Record date to participate
in the distribution Friday, 24 May 2002
Payment of the dividend and
debenture interest Monday, 27 May 2002
Linked unit certificates may not be dematerialised or rematerialised between
Monday, 13 May 2002 and Friday, 24 May 2002, both days inclusive.
By order of the board
S A RETAIL PROPERTIES LIMITED
30 April 2002
Registered office Transfer secretaries
Marriott at Kingsmead Computershare Services Limited
Kingsmead Office Park 7th Floor,
Durban, 4001 11 Diagonal Street
PO Box 207 Johannesburg, 2001
Durban, 4000 PO Box 1053
Tel: (031) 366-1111 Johannesburg, 2000
Tel: (011) 370-5305
Sponsor
Exchange Sponsors (Pty) Limited
(Registration number 1999/024433/07)
Property Asset Managers
Marriott Property Services
(Registration number 1982/006032/07)
