| Tue 20 Aug 2002, 0:00 | | Hyprop - Unaudited Results For The Six Months Ende |
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Hyprop - Unaudited results for the six months ended 30 June 2002
Hyprop Investments Limited
(Registration number 1987/00528/06)
Share code HYP ISIN code ZAE 000003437
GROUP INCOME STATEMENT
30 June 30 June 31 Dec
2002 2001 2001
Note (R000) (R000) (R000)
Turnover 51 190 38 060 89 523
Operating income 42 234 29 267 72 058
Finance charges (6 680) 1 736 751
Interest received 18 3 615 4 529
Interest paid (6 698) (1 879) (3 778)
Net operating income 35 554 31 003 72 809
Change in fair value of investment 15 876 (1 323) (1 323)
property
Income before debenture interest 51 430 29 680 71 486
and tax
Interest (41 150) (17 821) (72 021)
Debenture interest paid 1.0 (41 150) (18 044) (72 726)
Interest capitalised - 223 705
Income/(loss) before taxation 10 280 11 859 (535)
Taxation (2 391) (5) (18)
Secondary tax on companies (10) (5) (18)
Deferred capital gains taxation (2 381) - -
Net income/(loss) after taxation 7 889 11 854 (553)
Income/(loss) from associate 5 729 3 (51)
Net profit for the period 13 618 11 857 (604)
Earnings per combined unit (cents)
-
as previously reported - 61,856* 127,51*
Earnings per combined unit (cents) 84,624 59,235* 125,21*
Headline earnings per combined 63,772 61,824* 127,51*
unit cents)
(*Based on weighted average
combined units)
Reconciliation - Headline earnings
Net profit for the period 13 618 11 857 (604)
Debenture interest paid 41 150 18 044 72 726
Net profit after taxation before
debenture interest 54 768 29 901 72 122
Change in fair value of investment
property
(net of deferred taxation) (13 495) 1 323 1 323
Profit on sale of tangible fixed - (16) -
assets
Headline earnings 41 273 31 208 73 445
Total combined units in issue 64 719 64 719 64 719
478 478 478
Weighted average combined units 64 719 50 478 57 599
478 997 237
Note
1.0 Distribution details Dividends Total
Interest on on ordinary distribution
Debentures shares per combined
(cents (cents unit (cents
per unit) per unit) per unit)
Distribution number 29
for the six months ended
30 June 2002 63,583 0,127 63,710
Total distribution for the
year ended 31 December 2001 126,107 0,253 126,360
Distribution number 28
for the eight months ended
31 December 2001 84,490 0,170 84,660
Distribution number 27
for the four months ended
30 April 2001 41,617 0,083 41,700
ABRIDGED GROUP CASH FLOW STATEMENT
30 June 30 June 31 Dec
2002 2001 2001
(R000) (R000) (R000)
Cash (absorbed by)/generated from
operating activities (12 549) 9 878 38 092
Cash generated from operations 48 941 33 579 82 750
Interest income 18 3 615 4 529
Finance charges (6 698) - (3 778)
Distribution to unitholders (54 792) (27 316) (45 396)
Taxation (18) - (13)
Cash flow from investing (3 194) (321 683) (424 834)
activities
Cash flow from financing 10 682 314 400 334 954
activities
Net (decrease)/increase in cash
and cash equivalents (5 061) 2 595 (51 788)
Cash and cash equivalents at
beginning of the period 4 732 56 520 56 520
Cash and cash equivalents at end
of the period (329) 59 115 4 732
GROUP BALANCE SHEET
30 June 30 June 31 Dec
2002 2001 2001
(R000) (R000) (R000)
Assets
Non-current assets 888 837 769 918 871 388
Tangible fixed assets 887 802 769 311 870 631
Financial assets 1 035 607 757
Current assets 3 078 64 517 6 807
Trade and other receivables 3 078 5 402 2 075
Cash and cash equivalents - 59 115 4 732
Total assets 891 915 834 435 878 195
Equity and liabilities
Share capital and reserves 249 254 248 290 235 719
Non-current liabilities 584 352 550 736 571 289
Debentures 319 067 319 067 319 067
Debenture premium 144 690 144 710 144 981
Deferred capital gains taxation 2 381 - -
Long-term liabilities 118 214 86 959 107 241
Current liabilities 58 309 35 409 71 187
Trade and other payables 16 736 17 323 16 376
Taxation 11 5 19
Unitholders for distribution 41 233 18 081 54 792
Bank overdraft 329 - -
Total equity and liabilities 891 915 834 435 878 195
Net asset value per combined
unit (cents) 1 102 1 100 1 081
GROUP STATEMENT OF CHANGES IN EQUITY
Non-
distri- Reva-
Share butable luation Retained
capital reserve reserve income Total
(R000) (R000) (R000) (R000) (R000)
Balance at 1 January 2001
as previously reported 434 9 050 48 532 5 031 63 047
Change in accounting policy 173 208 173 208
Restated balance at
1 January 2001 434 9 050 221 740 5 031 236 255
Issue of ordinary share 214 214
capital
Net profit after taxation
for the six months ended 30 11 857 11 857
June 2001
Transfer to revaluation (1 323) 1 323 -
reserve
Dividends (36) (36)
Balance at 30 June 2001 648 9 050 220 417 18 175 248 290
Restated balance at
1 January 2001 434 9 050 221 740 5 031 236 255
Issue of ordinary share 214 214
capital
Net loss after taxation for
the year ended 31 December (604) (604)
2001
Transfer to revaluation (1 323) 1 323 -
reserve
Dividends (146) (146)
Balance at 31 December 2001 648 9 050 220 417 5 604 235 719
Restated balance at
1 January 2002 648 9 050 220 417 5 604 235 719
Net profit after taxation
for the six months ended 30 13 618 13 618
June 2002
Transfer to revaluation
reserve (net of deferred 13 495 (13 495) -
taxation)
Dividends (83) (83)
Balance at 30 June 2002 648 9 050 233 912 5 644 249 254
COMMENTS
1 Review of results
The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. For the period under
review the group adopted accounting statement, AC 135 (Investment Property)
for the first time. The results for the previous comparative periods have
been restated on the same basis.
Grant Thornton Kessel Feinstein have reviewed the financial information set
out in this report and their unqualified review report is available for
inspection at the company`s registered office.
Hyprop`s results for the period under review are in line with management`s
expectations. The headline earnings for the period ended 30 June 2002, of
63,772 cents per combined unit, represent an increase of 3% over the previous
comparable period.
2 Distribution
The Board has approved an interim distribution of 63,710 cents per combined
unit, a 3% growth in distribution over the previous comparable period.
3 New business and developments
Hyprop`s stated objective of actively growing its portfolio of prime,
strategically located property investments, has resulted in the following
initiatives being undertaken:
3.1 The Glen Shopping Centre
3.1.1 The acquisition of a further 16,77% undivided share in The Glen
Shopping Centre ("The Glen") for a purchase consideration of R47,8 million is
expected to yield 13%. The purchase consideration is payable in cash on
transfer of the undivided share into Hyprop`s name and will be funded out of
existing loan facilities. The effect of the acquisition on the net asset
value, earnings and headline earnings per linked unit will not be material.
The acquisition will result in Hyprop controlling 50,11% of The Glen. The
effective date of the acquisition is on transfer which is expected within the
next three months.
3.1.2 The co-owners of The Glen have agreed to capital expenditure of R10,3
million to expand the Pick `n Pay store as well as those of other national
tenants due to increased trading demand. Hyprop`s contribution will be R5,2
million which is expected to yield 15,5%.
3.2 The Rosebank Mall and JH Isaacs House
It was announced in a joint detailed cautionary dated 8 August 2002, that
Hyprop has offered to acquire the Rosebank Mall and JH Isaacs House from
Centrecity Property Fund (Cenprop) effective 1 October 2002 for an aggregate
purchase price of between R273,3 million and R304,0 million, payable by the
issue of Hyprop combined units at R10,25 per combined unit with a cash
alternative in respect of 50% of the consideration. The final purchase price
will depend upon capital expended to complete the refurbishment of the
Rosebank Mall.
Cenprop unitholders will have an election to receive cash instead of Hyprop
combined units, provided that the cash portion of the purchase price will not
exceed 50% of the total purchase price. The final proportion of combined
units to cash will depend upon the election made by Cenprop unitholders.
The transaction is subject to various suspensive conditions and further
announcements containing details of the acquisition, including financial
effects salient dates and times will be published as soon as possible.
Combined unitholders are advised to continue to exercise caution in their
dealings in combined units until further announcements are made.
4 Borrowings
At 30 June 2002 Hyprop`s borrowings amounted to R118,5 million, equating to a
14% debt-to-open market value ratio. Depending on the basis of settlement of
the purchase price payable for the Rosebank Mall and JH Isaacs House, Hyprop
may require maximum additional borrowings of R152,0 million which, together
with Hyprop`s available facilities of R211,0 million, will result in the debt-
to-open market value ratio not exceeding 30%.
5 Vacancies
Vacancies by area amount to 11% of the portfolio, unchanged from the prior
reporting period. The underlying quality of the office portfolio has shown
resilience in an otherwise difficult letting market. Vacancies in the retail
portfolio are insignificant.
6 Prospects
The Board is confident that Hyprop will deliver growth in distributions for
the year ended 31 December 2002, notwithstanding the weaker market
conditions.
Further investment opportunities in the retail and commercial sectors will
continue to be explored by management.
7 Payment of dividend and debenture interest
The Board resolved on 28 June 2002 that combined unitholders are entitled to
receive dividend payment number 29 of 0,127 cents per share and debenture
interest payment number 29 of 63,583 cents per debenture for the income
distribution period 1 January 2002 to 30 June 2002. The distribution amounts
to 63,710 cents per combined unit. The last day to trade cum distribution
will be Friday 6 September 2002. The combined units will trade ex
distribution as from Monday 9 September 2002. The record date will be Friday
13 September 2002 and the payment date will be Monday 16 September 2002.
Combined unitholders may not dematerialise or rematerialise their combined
units between Monday 9 September 2002 and Friday 13 September 2002, both days
inclusive.
On behalf of the Board
PF Kirchmann PG Prinsloo
Chairman Managing Director
16 August 2002
Registered office Transfer secretaries
Hyde Park Corner Shopping Centre Computershare Investors
Jan Smuts Avenue Services Limited
Sandton 2196 11 Diagonal Street
PO Box 41257 PO Box 1053
Craighall 2024 Johannesburg 2000
Date: 20/08/2002 04:00:00 PM Produced by the JSE SENS Department
Hyprop Steady In Tough Property Market
HYPROP STEADY IN TOUGH PROPERTY MARKET
HYPROP INVESTMENTS LIMITED
Property loan stock company Hyprop continued to grow strategically its portfolio
of prime real estate investments, boosting headline earnings per combined unit
by 3% from 61,82 cents to 63,77 cents for the six-months ended 30 June 2002.
Interim turnover of R51,2 million rose 35% from R38,1 million for the six months
ended 30 June 2001. The company declared an interim distribution of 63,71 cents
per combined unit, up 3% from the pro-forma distribution for the previous
comparative period.
Hyprop has been on a targeted acquisition trail since the successful integration
of the Kirchmann-Hurry Properties portfolio in May last year. Hyprop managing
director Pieter Prinsloo says: "We have continued to deliver income growth by
strengthening our portfolio with select property investments offering attractive
yields."
The company raised its one-third stake to a majority interest in The Glen
Shopping Centre, capitalising on increased trade that prompted the expansion of
tenant premises including Pick `n Pay. "Our investment of just under R48
million is expected to yield 13%, while our R5 million contribution to the
expansion is expected to yield 15,5%," says Prinsloo.
Hyprop, still under cautionary, also offered to acquire northern suburbs retail
hub Rosebank Mall and accompanying JH Isaacs House from Centrecity Property
Fund. The final purchase price of not more than R304 million, which is payable
in a combination of cash and combined units at R10,25 a unit, will be determined
by the cost of completing the Mall`s refurbishment.
Prinsloo points out the strategic importance of the Mall, located in the heart
of a captive affluent customer-base, which will further enable Hyprop to achieve
its objective of maximising returns by targeting quality properties.
Vacancies in the overall portfolio have been maintained at 11%, attributable
primarily to the office portfolio. "Our vacancy levels are lower than the
industry average for comparative locations," says Prinsloo emphasising this in
light of a generally difficult commercial letting market.
Looking ahead to year-end he anticipates little improvement in the property
market, particularly in the over-saturated northern suburbs office market.
"However, the ongoing diversification and consolidation of our portfolio in line
with strategy and embedded value of our core retail properties, should ensure
growth in distributions," says Prinsloo.
Ends.
Issued by: Envisage
Nicole Sacks
(011) 447 9601/083 287 2771
On behalf of: Hyprop Investments Limited
Pieter Prinsloo, MD
(011) 325 4340/ 082 451 3103
Issue date: 20 August 2002
FYI -
Website: www.hyprop.co.za
Past financials: www.hyprop.co.za/financials.asp
Date: 20/08/2002 04:01:00 PM Produced by the JSE SENS Department
