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Metboard - Interim Results And Dividend Declaration For The Six Months Ended
Release Date: 21/11/2002 17:57:04 Code(s): MPL
Metboard - Interim results and dividend declaration for the six months ended
30 September 2002
Metboard Properties Limited
Registration number 1998/005425/06
JSE Share Code: MPL
ISIN Code: ZAE000014874
("Metboard" or "the company")
Interim results and dividend declaration for the six months ended
30 September 2002
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
30 September 30 September 31 March
2002 2001 2002
Income statement R`000 R`000 R`000
Revenue 77 714 59 950 130 980
Net property income 63 476 53 869 116 473
Expenses (1 989) (1 743) (3 265)
Net income before 61 487 52 126 113 208
interest paid
Net interest paid (30 176) (26 191) (51 388)
Interest paid (30 782) (26 501) (52 564)
Interest received 606 310 1 176
Revaluation of - - 8 701
investment properties
Net income before
debenture interest
and taxation 31 311 25 935 70 521
Less distributions (31 302) (25 935) (61 821)
Debenture interest 31 271 25 909 61 759
Dividends 31 26 62
Net income before 9 - 8 700
taxation
Taxation (16) (11) (1 625)
Current (16) (11) (23)
Deferred - - (1 602)
Net income after (7) (11) 7 075
taxation
Transfer to non- - - (7 099)
distributable reserve
Retained income at (7) (11) (24)
end of period
Linked units in issue 198 850 362 155 614 955 166 141 271
Weighted average
number of linked
units in issue 187 947 332 149 101 883 157 621 577
Earnings per linked 16.65 17.39 44.72
unit (cents)
Headline earnings per 16.65 17.39 39.20
linked unit (cents)
Earnings/Headline
earnings are
calculated as
follows:
Net income before
debenture interest
and taxation 31 311 25 935 70 521
Taxation (16) (11) (23)
Earnings 31 295 25 924 70 498
Revaluation of - - (8 701)
investment properties
Headline earnings 31 295 25 924 61 797
Distribution
analysis:
Distribution per 16.86 17.52 39.12
linked unit (cents)
One month to - 3.40 3.40
April 2001
Five months to - 14.12 14.12
September 2001
Six months to - - 21.60
March 2002
Two months to 6.80 - -
May 2002
Four months to 10.06 - -
September 2002
Unaudited Unaudited Audited
30 September 30 September 31 March
2002 2001 2002
Balance sheet as at R`000 R`000 R`000
30 September
Assets
Investment properties 1 111 807 869 234 914 606
Current assets 33 712 17 584 41 432
Accounts receivable 18 643 7 083 27 206
Cash and cash equivalents 15 069 10 501 14 226
1 145 519 886 818 956 038
Equity and liabilities
Capital and reserves 614 498 487 443 524 554
Non-current liabilities 455 119 373 425 315 626
Current liabilities 75 902 25 950 115 858
Accounts payable 17 455 3 977 3 792
Short-term portion of loans 38 443 - 76 179
Distribution to unitholders 20 004 21 973 35 887
1 145 519 886 818 956 038
Net asset value per linked
unit (cents) 309 313 316
Total
Share
Share Debenture Non Retained Capital
Distributable and
Statement of Capital Capital Reserves Income Reserves
changes in R`000 R`000 R`000 R`000 R`000
equity
Audited
balance at
31 March 1 661 430 298 92 595 524 554
2002
Shares 329 329
issued
Debentures 89 622 89 622
issued
Net income
for the
period 24 24
Dividends (31) (31)
Unaudited
balance at
30 September 1 990 519 920 92 595 (7) 614 498
2002
Unaudited Unaudited
6 months to 6 months to
30 September 30 September
2002 2001
Abridged cash flow statement R`000 R`000
Cash flow from operating activities 45 964 48 547
Net financing costs (30 176) (26 191)
Taxation paid (4) (9)
Distributions to unitholders (47 185) (25 011)
(31 401) (2 664)
Cash flow from investing activities (197 199) (204 777)
Cash flow from financing activities 229 443 120 245
843 7 234
Cash and cash equivalents at beginning
of period 14 226 14 318
Cash and cash equivalents at end of 15 069 21 552
period
Accounting
These interim financial statements have been prepared in accordance with the
South African statements of generally accepted accounting practice and the
accounting policies used are consitant with those applied in the annual
financial statements of 31 March 2002.
Financial results of the company
The financial results for the six month period ended 30 September 2002 are not
directly comparable to the results for the same period to 30 September 2001 as
Metboard acquired 8 properties from PG Wood Industries (Finance Co.) (Pty)
Limited and Nogaprops (Pty) Ltd in October 2001 for a total purchase
consideration of R41,0 million as well as a portfolio of 22 new properties from
Old Mutual Life Assurance Company (South Africa) Limited ("Old Mutual") with
effect from 1 June 2002 for a total purchase consideration of R199,950 million.
In addition, Metboard has disposed of 7 properties for R9,47 million since 1
April 2002.
Revenue for the period increased by 29,6% to R77,7 million as a direct result of
the above whilst net property income rose to R63,5 million, an increase of
17,8%. After accounting for an increase of R4,0 million in net interest paid,
net income before debenture interest and taxation for the period increased by
16,9%.
Although total distributions for the period, including debenture interest and
dividends, increased by 20,7% to R31,3 million, total distributions per linked
unit for the period decreased by 3,8% from 17,52 cents to 16,86 cents.
This decrease can be attributed, in the main, to the substantial increase in
vacancies experienced during the last quarter (January to March 2002), of the
previous financial year which continued to effect the first six months of this
financial year. Other factors impacting on the distribution for the period are
the increased number of linked units in issue and the fact that the total
insurance premium for the year was paid during the period whilst in most
instances, the premium will only be recovered monthly from the tenants.
In the past six months, Metboard has however managed to reduce its overall
vacancies through aggressive letting strategies and the full impact of this
additional letting will only be evident in the results for the second six month
period to 31 March 2003.
Property portfolio
At the end of September 2002 Metboard`s property portfolio consisted of 163
industrial properties with a total gross lettable area of 1 215 474 square
metres making it the only focused industrial property fund listed on the JSE
Securities Exchange SA. The 22 properties acquired in June 2002 added 234 084
square metres of gross lettable area to the property portfolio, and the 7
properties sold reduced the gross lettable area by 19 691 square metres.
Vacant space in the portfolio increased from 88 248 square metres at the end of
March 2002 to 93 105 square metres at the end of September 2002. As a percentage
however, vacancies have reduced from 8,82% to 7,66%.
Since the end of September 2002, a further 10 919 square meters of vacant space
has been let which should reduce the overall vacancy percentage to below 7,0% at
the year-end.
The improved letting and reduced vacancy percentage has not had any impact on
the results for the six months ended 30 September 2002 but are expected to have
a positive impact on the results for the second six month period ending 31 March
2003.
Share capital
At 30 September 2001 Metboard had 155 614 955 linked units in issue. Since then
the Company has issued 10 526 316 new linked units to fund the PG Wood
acquisition and a further 32 709 091 new linked units to partly fund the
portfolio of properties acquired from Old Mutual in June 2002, thereby
increasing the total number of linked units in issue to 198 850 362.
Borrowings
At 30 September 2002 Metboard`s total interest bearing borrowings amounted to
R492 million representing a loan to property value ratio of 44,3%, comfortably
below the Company`s stated upper limit of 50,0%.
Interest rates in respect of approximately 92% of Metboard`s total borrowings
have been fixed for periods ranging between 2 and 10 years at an average all-in
rate of around 13,7%. The 4% increase in the prime overdraft interest rate since
the last quarter of 2001 has had a very limited effect on the Company`s results
for the period and is unlikely to have any material effect on the results for
the year ending 31 March 2003.
Prospects
Despite generally improved conditions in the industrial sector which are
reflected in the recent letting activity experienced by Metboard and the
accompanying reduction of vacancy levels, market conditions remain extremely
competitive.
Although the recent hike in the prime overdraft interest rate will have an
immaterial effect on the total interest bill of Metboard, the impact of this
inflation curbing measure imposed by the South African Reserve Bank is being
felt by a large percentage of Metboard`s tenants.
The lower results achieved during the first six month period of the financial
year will make it difficult for Metboard to achieve total distributions for the
year equal to that paid for the year to 31 March 2002.
The reduced vacancy levels and improved letting conditions experienced recently
should however bode well for a significantly improved second half.
Declaration of dividend
The directors of Metboard hereby give notice of second interim dividend
declaration number 12 of 0.0100 cents per share and debenture interest payment
number 12 of 10.0500 cents per debenture for the 4 month period 1 June 2002 to
30 September 2002 ("the second distribution"). The second distribution amounts
to 10.0600 cents per Metboard linked unit. The second distribution to Metboard
linked unit holders will be made in accordance with the abbreviated timetable
set out below:
2002
Last date to trade cum the second distribution Friday, 6 December
Linked units commence trading ex the second
distribution Monday, 9 December
Record date to participate in the second
distribution Friday, 13 December
Payment of the dividend and debenture
interest Tuesday, 17 December
No dematerialisation or rematerialisation of linked unit certificates may take
place between Monday 9 December 2002 and Friday 13 December 2002, both dates
inclusive.
By order of the board
C M Liebenberg
Secretary 22 November 2002
Registered office:
100 Grayston Drive Sandown Sandton 2196
P O Box 78949 Sandton 2146
Transfer secretary:
Computershare Investor Services Limited
Registration number 1958/003546/06
70 Marshall Street Johannesburg 2001
P O Box 1053 Johannesburg 2000
Managed by Investec property group
Date: 21/11/2002 05:57:03 PM Produced by the JSE SENS Department
