| Thu 6 Feb 2003, 18:07 | | CENTRE CITY PROPERTY FUND - FINANCIAL RESULTS AND |
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DECLARATION
CENTRE CITY PROPERTY FUND
Share code CEN
ISIN ZAE000001335
("Cenprop")
Financial Results and final Income Distribution Declaration
The directors of Property Fund Managers Limited, management company of
Cenprop, announce that the audited consolidated results of the Trust for the
financial year ended 31 December 2002 are as follows:
2002 2001
R`000 R`000
CONSOLIDATED INCOME STATEMENTS
Net property income 68 159 71 074
Interest 2 523 3 875
70 682 74 949
Trust expenditure 24 611 20 078
Headline earnings 46 071 54 871
Net write-(down)/up on revaluation
of investment property (125 019) 15 877
Net (deficit)/surplus on disposal
of investment property (12 847) 230
Net (loss)/income for the year (91 795) 70 978
Transfer from/(to) revaluation
reserve/ trust capital 137 866 (16 107)
Transfer from maintenance reserve 944 1 232
Income available for distribution 47 015 56 103
Reconciliation of headline earnings to
income available for distribution
Headline earnings 46 071 54 871
Transfer from maintenance reserve 944 1 232
Income available for distribution 47 015 56 103
Units in issue 163 490 707 163 490 707
Headline earnings (cents per unit) 28,18 33,56
(Loss)/earnings (cents per unit) (56,15) 43,41
Income distribution (cents per unit) 28,76 34,31
Net asset value (cents per unit) 244 329
CONSOLIDATED BALANCE SHEETS
Assets
Non-current assets
Investment property 424 842 537 880
Current assets 19 963 30 759
Total assets 444 805 568 639
Unitholders` interest and liabilities
Unitholders` interest 399 395 538 205
Long-term liabilities 17 969 -
Current liabilities 27 441 30 434
Total unitholders` interest and liabilities 444 805 568 639
CONSOLIDATED STATEMENT OF CHANGES
IN UNITHOLDERS` INTEREST
Capital of Trust 250 244 252 781
Balance at beginning of the year 252 781 252 551
Net (deficit)/surplus on disposal of property (2 537) 230
Revaluation reserve 144 943 280 272
Balance at beginning of the year 280 272 264 395
Reversal on disposal of property company (10 310)
Adjustment to current independent valuation
of investment property (125 019) 15 877
Maintenance reserve 4 198 5 142
Balance at beginning of the year as restated 5 142 6 374
As previously reported - -
Change in accounting policy (refer below) 5 142 6 374
Transfer to distributable reserve (944) (1 232)
Undistributed income 10 10
Balance at beginning of the year 10 10
Income for the year available for distribution 47 015 56 103
Income distributions (47 015) (56 103)
Total unitholders` interest 399 395 538 205
ABRIDGED CONSOLIDATED CASH FLOW STATEMENTS
Net cash outflow from operating activities (8 349) (10 193)
Net cash outflow from investing activities (24 828) (16 120)
Net cash inflow from financing activities 17 969 -
Net decrease in cash resources (15 208) (26 313)
Cash resources at the beginning of the year 16 259 42 572
Cash resources at the end of the year 1 051 16 259
NOTES
As at 31 December 2002 the investment property companies have contractual
commitments totalling R1,6 million (2001: R7,7 million)
INCOME DISTRIBUTIONS
Income available for distribution (cents per unit) 28,76 34,31
Distribution (cents per unit) 28,76 34,31
Interim 14,51 18,08
Final 14,25 16,23
The final distributions being number 47 for Centrecity Property Fund, have been
declared in respect of the income distribution period 1 July 2002 to 31 December
2002.
COMMENTARY
FINANCIAL RESULTS
Income available for distribution is 28,76 cents per unit (2001: 34,31
cents). Allowing for the interim distribution of 14,51 cents per unit (2001:
18,08 cents) a final distribution of 14,25 cents per unit (2001: 16,23 cents)
will be distributed at the beginning of March 2003. Headline earnings per unit
declined by 16,0% compared to 2001.
A significant factor contributing to the decline in earnings was the vacancy
at Andersen Park which was sold for a gross price of R12,5 million in December
2002. While it generated net income of R3,9 million in 2001, this reversed to a
net loss of R602 000 in 2002. Innes Chambers distributable income reduced by
R3,4 million in 2002 over 2001 due to The Society of Advocates vacating 5 159 m2
of offices. Their renewal over 5 436 m2 was at substantially lower rentals.
The refurbishment of The Mall of Rosebank was completed late in 2002. It
increased its distributable income from R17,8 million in 2001 to R22,3 million
in 2002, an increase of 25,3%. The Mall of Rosebank and JHI House, which are
treated as one property, increased distributable income by 2,7% to R32,4
million.
During October 2002, Cradock Heights (Pty) Limited obtained an order from the
High Court against Cenprop and The Rosebank Mall (Pty) Limited for the removal
of the new glass structure at the Cradock Avenue entrance of The Rosebank Mall.
Cenprop and The Rosebank Mall (Pty) Limited have recently obtained leave to
appeal the judgement. The directors are of the opinion that the potential
liability will not exceed R4,5 million in the event that the appeal is not
upheld.
Trading in Cenprop units during 2002 increased to 63,0% of units in issue
compared to 46,5% in 2001.
PORTFOLIO UPDATE
As stated in the Interim Results Declaration the PFM Board has resolved that
unitholders` interests would be best served by the disposal of the funds
properties and it being wound-up thereafter. Accordingly unitholders are
referred to the various announcements that have been made to date and the
details of the transactions contained in the circular to unitholders to be
posted in the week commencing 10 February 2003.
As advised in the announcement of the 18 December 2002, the sale of NBS
Building and Innes Chambers to ApexHi for R16,8 million was effected and these
properties were transferred on 30 January 2003.
ACCOUNTING POLICIES
The results have been prepared in accordance with South African Statements of
Generally Accepted Accounting Practice. The accounting policies are consistent
with those applied in the previous year, with the exception of the accounting
policy for maintenance expenditure noted below.
CHANGE IN ACCOUNTING POLICY
In terms of the Generally Accepted Accounting Practice, AC 130, a provision
for long-term maintenance can no longer be raised. As management deem it prudent
to provide for long-term maintenance a reserve has been created to provide for
such maintenance.
AUDIT OPINION
The auditors, KPMG Inc., have issued their opinion on the Group`s financial
statements for the year ended 31 December 2002. A copy of their unqualified
report is available for inspection at the fund`s registered office.
ANNUAL REPORT
Cenprop`s annual report will be posted to unitholders on or about 1 March
2003.
INCOME DISTRIBUTION DECLARATION
Notice is hereby given that a cash distribution of 14,25 cents per unit
(2001: 16,23) ("the distribution") has been declared, payable to unitholders
recorded in the books of the Fund at the close of business on the record date,
Friday, 28 February 2003. Unitholders are advised that the last day to trade
"cum" the distribution will be Friday, 21 February 2003. The units will trade
"ex" distribution as from Monday, 24 February 2003. Payment will be made on
Monday, 3 March 2003. Unit certificates may not be dematerialised or
rematerialised during the period Monday, 24 February 2003 to Friday, 28
February 2003, both days inclusive.
On behalf of the board
J H I Real Estate Limited Johannesburg
Secretaries 7 February 2003
REGISTERED OFFICE:
1st Floor, JHI House,
11 Cradock Avenue,
Corner Baker Street,
Rosebank, 2196
PO Box 2100, Parklands, 2121
TRANSFER SECRETARIES:
Computershare Investor Services,
Ground Floor, 70 Marshall Street
Johannesburg, 2001
PO Box 1053, Johannesburg, 2000
PFM PROPERTY FUND MANAGERS LTD
Co. Reg. No. 1980/009531/06
Date: 06/02/2003 05:56:49 PM Produced by the JSE SENS Department
