Unaudited Condensed Consolidated Financial Statements of Collins Property Group for the Six Months to 31 August 2023

COLLINS PROPERTY GROUP LIMITED
(previously Tradehold Limited)
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Ordinary Share Code: CPP  ISIN: ZAE000152658
("Collins" or the "Company" or the "Group")



UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF COLLINS PROPERTY 

GROUP FOR THE SIX MONTHS TO 31 AUGUST 2023



Key information

-  Revenue: R581 million (31 August 2022: R570 million)

-  Profit from continuing operations before non-controlling interest: 

   R159 million (31 August 2022: R139 million)

-  Net profit attributable to ordinary shareholders: R108 million 

   (31 August 2022: loss of R958 million)

-  Interim dividend: To be declared post REIT conversion.



The disposal of the Company's UK assets in the second half of 2022 formed 

part of an extensive restructuring of the business over the past six months, 

a process intended to result in the conversion of the Company into a real 

estate investment trust ("REIT") during the current financial year, should 

all the necessary approvals be obtained in time.



The restructuring process started with the bringing of the Company onshore 

from a tax perspective at the end of February 2023. As part of the process 

an agreement was reached with the owners of U Reit Collins (Pty) Ltd whereby 

they swapped their 25.7% shareholding in CPP, the South African division of 

the group, for a 21.78% shareholding in the Company through the issue of 

shares at an effective price of R13.64 per ordinary share.



The name of the Company was also changed from Tradehold Limited to Collins 

Property Group Limited, to leverage off the well-respected name of Collins 

in the local property market.



Total assets now amount to R12.2 billion (28 February 2023: R12.2 billion). 

Earnings per share were 42 cents compared to a loss of 373 cents per share 

for the corresponding period. Net asset value per share was R12.62 compared 

to R12.40 at 28 February 2023.



Collins

There was a renewed focus by management in the reporting period on balancing 

its local portfolio with properties in Western Europe. In the past six 

months Collins obtained a share in four mainly industrial properties in the 

Netherlands to add to the six it already owns in Austria. A senior staff 

member of the Group will be moving to the Netherlands in January 2024 to 

actively grow its portfolio in Europe, with potential assets in Germany at 

present under consideration. 



In South Africa Collins has made good progress in selling down assets to 

free up cash for, inter alia, the intended offshore expansion. This ongoing 

recycling of assets is also aimed at constantly improving the overall 

quality and profitability of the portfolio. In the period under review seven 

properties were sold for a total of R62 million while the sale of further 

properties to the value of R159 million are expected to be completed before 

the end of the financial year.



Locally the Group is increasing its presence in the Western Cape, which 

management believes offers considerable opportunities. It has at present 

several substantial projects at various stages of investigation and 

development, the focus for now being mainly on convenience retail, targeting 

major retail groups as anchor tenants.



The bulk of the Group's gross lettable area ("GLA") of just more than 

1.5 million square metres, consists of large industrial warehouses and 

distribution centres let on long-term leases to mainly national and 

JSE-listed companies. At the end of the reporting period, the weighted 

average lease expiry date ("WALE") was 4.7 years. Vacant space increased 

from 3% in February 2023 to 4.04%, mainly due to some smaller tenants being 

forced by the harsh business environment to either downsize or close up 

their businesses altogether. Since the end of the reporting period the 

amount of vacant space has recovered to 3.6%. Rental collections reduced 

slightly from 98.8% to 97.5%.



Prospective ordinary share cash dividend

The board of directors of Collins intends to declare an interim dividend for 

the six months to 31 August 2023, subject to Collins being granted REIT 

status by the JSE. As set out above, Collins is in the process of applying 

for REIT status and anticipates being granted REIT status by the JSE. It is 

intended that the interim dividend will be treated as a "qualifying 

distribution" for purposes of section 25BB of the Income Tax Act, 58 of 

1962. Accordingly, an interim dividend will only be declared once Collins 

has been granted REIT status by the JSE. A further announcement in this 

regard will be released on SENS in due course. 



Outlook

During the period under review ñ and in the months since ñ much of 

management's time has been spent on the extensive restructuring of the 

business and on equipping it for its future status as a REIT. We believe the 

Group is now much more focused and that the broadening of its footprint both 

into Europe and the Western Cape, has greatly strengthened its ability to 

manage the challenging operating and economic environment. 



CH Wiese          GC Lang

Chairman          Director



2 November 2023



Full announcement

The contents of this announcement is the responsibility of the directors of 

Collins. It is only a summary of the information contained in the full 

announcement ("Full Announcement"). Any investment decisions by investors 

and shareholders should be based on consideration of the Full Announcement 

published on SENS on Thursday, 2 November 2023 which is available at the 

following link: 

https://senspdf.jse.co.za/documents/2023/jse/isse/ccpe/ie2023.pdf and on 

Collins's website at www.tradehold.co.za. Copies of the Full Announcement 

are available for inspection and may be requested at no charge from 

Collins's registered office at Leinster Hall, 7 Weltevreden Street, Gardens 

8005, or from that of its sponsor, Questco Corporate Advisory (Pty) Ltd, 

Ground Floor, Block C, Investment Place, 10th Road, Hyde Park, 2196 at no 

charge, from Monday to Friday during office hours.



Directors and administration

Non-executive directors: CH Wiese, PJ Roelofse, JD Wiese, KR Collins, 

MR Collins

Independent non-executive directors: RD Fenner, BA Chelius, B Makhunga

Executive directors: KA Searle, FH Esterhuyse, GC Lang, DC Coleman

Company secretary: PJ Janse van Rensburg

Transfer secretary: Computershare Investor Services (Pty) Ltd

Sponsor: Questco Corporate Advisory (Pty) Ltd


Date: 02-11-2023 09:53:00
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