| Thu 6 Feb 2003, 18:00 | | APEXHI B UNITS BENEFIT FROM INCREASED SECOND QUART |
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NEWS RELEASE
APEXHI B UNITS BENEFIT FROM INCREASED SECOND QUARTER DISTRIBUTION, BOOSTS
INTERIM RESULTS
ApexHi Properties Limited has reported a distributable income of R119,8-million
for the six months ended 31 December 2002.
The distribution for the A and B units together increased from 51,25 cents in
the first quarter to 52 cents in the second quarter, with the A units
maintaining its distribution of 25,50 cents per unit, and the B units increasing
three percent from 25,75 cents to 26,50 cents per unit.
ApexHi CEO, Gerald Leissner, says the increase in the distribution, which is
based on satisfactory earnings, demonstrates the effect of the company`s unique
capital structure. "The separate A units have a guaranteed distributable income
of 102 cents per unit per annum, while the more volatile B units receive the
balance of the income. The B units therefore benefit directly from any increase
in the distribution, but would of course feel the effect of any reduced
distribution," he says.
The directors are confident that the forecast distribution for the full year of
102 cents per A unit, and 103 cents per B unit will be achieved.
During the six months under review, five properties were acquired for R128-
million, including Vineyard in Stellenbosch; Nedbank Centre, Vereeniging; and
Jewel City, Sage Towers and Education Centre in Johannesburg.
In addition, a portfolio of 18 properties was purchased from Pangbourne for
R122,1-million. The total purchase consideration was settled by the issue of 10
617 600 units at a price of R11,50 per combined unit. Although transfer had not
been effected as at 31 December 2002, the risks and rewards of ownership passed
on 1 October 2002 and the consideration units rank for distribution from that
date.
Perm Building Paarl and Strydom Street A&B were sold for R3,4-million and the
proceeds used to reduce debt.
The total portfolio at 31 December 2002 comprised 193 properties with 1,4-
million square meters of lettable area.
The company`s total borrowings amounted to R542,5-million at 31 December 2002,
of which R475-million or 88% has fixed rates of interest at a weighted average
all inclusive rate of 12,82%. The ratio of borrowings to property assets is 29%.
Subsequent to the period under review, ApexHi sold the majority of the Domayne
Engineering Services` (DES) lift maintenance contracts to Otis (Pty) Ltd, with
effect from 1 January 2003 for R8,3-million. The disposal is consistent with the
company`s strategy to focus on its core business, and ApexHi intends to dispose
of the remaining air conditioning maintenance business, which remains in DES, in
due course.
In addition, since 31 December 2002, ApexHi has entered into agreements for the
purchase of a further nine properties for a purchase price of R226,9-million.
The purchase considerations will be settled by the issue of 10 241 839 A units
and 10 241 839 B units at an average issue price of R11,64 and cash of R107,7-
million. These acquisitions boost the company`s asset value to more than R2-
billion.
Agreements have been reached for the disposal of 80 Mimetes Road, 52 Andries
Street and Elandsfontein for a total consideration of R9,1-million. Proceeds
will be used to repay debt. The book value of these properties as at 30 June
2002 was R8,9-million.
ApexHi announced today (Thursday) that it had made an offer to purchase the
entire property portfolio of Fairvest Property Holdings Limited and the units in
Bonatla Property Holdings Limited held by Fairvest, for approximately R240-
million.
Ends
For further information:
Gerald Leissner
(011) 442-3111
Issued by:
Sandra Mason
DiagonalStreet Communications
(011) 880-2271
Date:
Date: 06/02/2003 05:53:18 PM Produced by the JSE SENS Department
