| Tue 4 Jun 2002, 0:00 | | Metboard Properties Limited - Audited Final Result |
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Metboard Properties Limited - Audited final results for the year ended
31 march 2002 and dividend declaration
Metboard Properties Limited
("Metboard" or "the company")
Audited final results for the year ended 31 march 2002 and dividend
declaration
Income statement 2002 2001
for the year ended 31 March
R`000 R`000
Revenue 130 980 80 394
Trading Income 113 210 67 884
Interest paid (51 390) (29 627)
Net operating income 61 820 38 257
Profit on disposal of investment
properties - 291
Revaluation of investment
properties 8 701 87 883
Income before debenture interest
and tax 70 521 126 431
Debenture interest paid (61 759) (38 178)
Interim distribution to April (3 958) -
Interim distribution to September (21 950) (17 151)
Final distribution to March (35 851) (21 027)
Net income before taxation 8 762 88 253
Taxation (1 625) (37)
Current (23) (37)
Deferred (1 602) -
Net income after taxation 7 137 88 216
Transfer to non-distributable
reserve (7 099) (88 174)
Net profit for the year 38 42
Weighted number of linked units
in issue 157 621 457 107 263 797
Earnings per linked unit (cents) 44.73 117.84
Headline earnings per linked
unit (cents) 39.21 35.63
Earnings / Headline earnings are
calculated as follows:
Income before debenture interest
and taxation 70 521 126 431
Taxation (23) (37)
Earnings 70 498 126 394
Profit on sale of properties - (291)
Revaluation of investment
properties (8 701) (87 883)
Headline earnings 61 797 38 220
Distribution per linked unit (cents) 39.12 39.00
Interim distribution to April 3.40 -
Interim distribution to September 14.12 17.52
Final distribution to March 21.60 21.48
Balance sheet 2002 2001
as at 31 March R`000 R`000
ASSETS
Investment properties 914 606 664 478
Current assets 41 432 23 120
Accounts Receivable 27 206 8 802
Bank and call accounts 14 226 14 318
956 038 687 598
EQUITY AND LIABILITIES
Capital and reserves 524 554 387 828
Non-current liabilities 315 625 271 641
Long-term interest bearing debt 314 023 271 641
Deferred tax 1 602 -
Current liabilities 115 859 28 129
Accounts payable 39 561 28 129
Short-term interest bearing debt 76 298 -
956 038 687 598
Number of linked units in issue 166 141 271 116 536 524
Net asset value per linked
unit (cents) 315.70 332.50
2002 2001
Statement of changes in equity R`000 R`000
Changes in share and debenture
capital:
Shares issued 496 185
Debentures issued 129 154 40 615
Changes in accumulated profits
and reserves:
Net profit for the year 38 42
Profit on sale of properties - 291
Revaluation of investment
properties 7 099 87 833
Dividends (61) (38)
Net increase in equity 136 726 128 928
Equity at beginning of year 387 828 258 900
Equity at end of year 524 554 387 828
2002 2001
Cash flow statement R`000 R`000
Cash flow from operating activities
Cash generated by operations 91 432 69 947
Net finance costs (51 390) (29 627)
Taxation paid (56) (19)
Distribution to linked unit holders (46 981) (23 773)
Cash flow from operating activities (6 995) 16 528
Cash flow from investing activities (241 427) (148 070)
Cash flow from financing activities 248 330 142 075
Net (decrease) / increase in cash
and cash equivalents (92) 10 533
Cash and cash equivalents at
beginning of the year 14 318 3 785
Cash and cash equivalents at
end of the year 14 226 14 318
Basis of Accounting
The final results have been prepared in accordance with the South
African Statements of Generally Accepted Accounting Practice and are
consistent with those used in the annual financial statements for the
year ended 31 March 2001.
Financial results of the company
The financial results of Metboard for the year to 31 March 2002 are
not directly comparable to the results for the same period last year
due to the fact that 32 properties, in three different transactions,
were acquired during the year. Turnover and net operating income
increased by 63% and 62% respectively, whilst total debenture interest
paid to linked unitholders for the year increased by 62%. Due to an
additional 49.6 million linked units being issued during the year, the
total distribution per linked unit was marginally higher at 39.12
cents compared to 39.0 cents for the previous year, representing an
increase of 0.3%.
During the last three months of the financial year, a number of
circumstances arose which impacted negatively on Metboard`s results
for the year and which resulted in Metboard not achieving its forecast
distribution. The major contributing factors included loss of rental
due to certain tenant insolvencies, certain budgeted lettings not
materialising, bad debts and leases being renewed at levels lower than
budget in order to retain certain tenants.
Acquisitions
In May 2001 Metboard acquired 24 properties from Old Mutual Life
Assurance Company (South Africa) Limited ("Old Mutual") for R195.65
million. In October 2001 the company acquired 5 properties from PG
Wood Industries (Finance co.) (Pty) Ltd for R30 million ("the PG Wood
acquisition") and 3 properties from Nogaprops (Pty) Ltd for R11
million. These acquisitions have significantly enhanced the property
portfolio of the company and have given the portfolio a greater
geographical spread.
Disposals
During the year to 31 March 2002 the company disposed of 3 properties
that no longer met its investment criteria. A further 4 properties
have been sold since year-end and transfer of these properties is
expected by the end of July 2002.
Property portfolio
At 31 March 2002 the company owned 149 properties with a total gross
lettable area of 1 001 081 square metres. The current valuation of the
property portfolio is R914 million. At 31 March 2002 the unlet space
in the portfolio amounted to 88 248 square meters representing 8.82%
of total gross lettable area. The comparable figure for March 2001 was
61 465 square metres representing 8.26% of total gross lettable area
at that date. A large portion of the current vacant space will be
difficult to let and is assumed to remain vacant for most of the 2003
financial year.
Share Capital
On 2 May 2001 the company issued 39 078 431 additional linked units to
partly fund the Old Mutual acquisition referred to above. In October
2001 a further 10 526 316 linked units were issued to fund the PG Wood
acquisition.
Borrowings
At 31 March 2002 total borrowings amounted to R390 million of which
89.7% has been fixed for periods ranging from 2 to 10 years. The
weighted average rate of interest over these periods amounts to
13.22%. The borrowings represent 42.7% of the value of the property
portfolio.
Post balance sheet events
At a general meeting of Metboard linked unit holders held on Friday,
31 May 2002, the acquisition by the company of a further 22 properties
from Old Mutual was approved. Transfer of these properties took place
on the same date.
Details of the properties are included in a circular posted to linked
unit holders on 8 May 2002. The total purchase price of R199.95
million (including costs) was settled through the issue of 32 709 091
new linked units at a price of R2.75 per linked unit and additional
borrowings of R110 million. The borrowings, comprising 2 loans of R55
million each, have been fixed for 5 and 7 years at 14.71% and 14 82%
respectively, with no capital repayments during the period of the
loans. The inclusion of the loans in the total borrowings of Metboard
will result in the weighted average rate of interest increasing to
13.56%.
Declaration of dividend and interest payments
Metboard linked unit holders are referred to the detailed terms
announcement published in the press on Wednesday, 3 April 2002 and the
results of general meeting announcement published in the press on
Monday, 3 June 2002 relating to the acquisition by Metboard of a
portfolio of properties from Old Mutual ("the acquisition").
In terms of the acquisition, Metboard will issue 32 709 091 new
Metboard linked units ("the new Metboard linked units") which units
will be listed on the JSE Securities Exchange as soon as is
practicably possible after the transfer of the properties into the
name of Metboard and the settlement of the dividend and interest
payments referred to in this paragraph which is expected to be on
Thursday, 27 June 2002.
Notice is hereby given of final dividend declaration number 10 of
0.0216 cents per share and debenture interest payment number 10 of
21.5784 cents per debenture for the period 1 October 2001 to 31 March
2002 ("the final distribution") as well as dividend declaration number
11 of 0.0068 cents per share and debenture interest payment number 11
of 6.7932 cents per debenture for the period 1 April 2002 to 31 May
2002 ("the first interim distribution").
The final distribution of 21.6 cents per linked unit and the first
interim distribution of 6.8 cents per linked unit will be payable to
Metboard linked unit holders in accordance with the abbreviated
timetable set out below:
2002
Last date to trade "cum" the
distributions Wednesday, 19 June
Linked units commence trading "ex"
the distributions Thursday, 20 June
Record date to participate in the
distributions Wednesday, 26 June
Payment of the dividend and
debenture interest Thursday, 27 June
The new Metboard linked units to be issued pursuant to the acquisition
will not qualify for the final or first interim distributions.
No dematerialisation or rematerialisation of linked unit certificates
may take place between Wednesday, 12 June 2002 and Wednesday, 26 June
2002, both days inclusive.
By order of the board
C M Liebenberg
Secretary
4 June 2002
METBOARD PROPERTIES LIMITED Reg no. 1998/005425/06
JSE Share Code: MPL ISIN: ZAE000014874
REGISTERED OFFICE: 100 Grayston Drive Sandown Sandton 2196
P O Box 78949 Sandton 2146
TRANSFER SECRETARY: Computershare Investor Services Limited Reg no.
1958/003546/06
11 Diagonal Street Johannesburg 2001
PO Box 1053 Johannesburg 2000
MANAGED BY INVESTEC PROPERTY GROUP
Date: 04/06/2002 04:41:58 PM Produced by the SENS Department
