|
PRELIMINARY REVIEWED RESULTS FOR THE PERIOD ENDED 30 JUNE 2003
iFour Properties Limited
(Formerly iFour Properties (Proprietary)Limited)
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
(REGISTRATION NUMBER 2001/016118/06)
SHARE CODE: IFR
ISIN CODE: ZAE000039236
("the company")
Group abridged income statement
for 18 months ended
R"000 30 June 2003
Revenue 139 861
Operating costs - property portfolio 34 212
Operating costs - administration 6 298
Operating profit 99 351
Revaluation of investment properties 24 205
Net profit on disposal of investment property 7 224
Earnings before finance charges 130 780
Finance charges 55 550
Debenture interest distributions 43 706
Earnings before taxation 31 524
Taxation 4 714
Earnings for the period 26 810
Reconciliation between earnings and
headline earnings per share
Earnings for the period 26 810
Adjusted for:
Revaluation of investment properties
net of deferred capital gains taxation (20 575)
Profit on disposal of investment property
net of capital gains taxation (6 140)
Listing transaction costs amortised 1 017
Headline earnings 1 112
Number of linked units in issue 58 275 179
Weighted average linked units in issue 58 275 179
Earnings per share (cents) 46,00
Headline earnings per share (cents) 1,91
Diluted headline earnings per share (cents)
based on 64 875 179 units 1,71
Net asset value per share (cents) 83,60
Distribution per linked unit (cents) 75,00
Statement of changes in equity
Share Share Retained
capital premium income Total
R"000 R"000 R"000 R"000
GROUP
Balance at 1 January 2002 - - - -
Units issued - 11 June 2002 58 23 252 23 310
Share issue costs - (1 403) - (1 403)
Earnings for the period after distributions and tax 26
810 26 810
Balance at 30 June 2003 58 21 849 26 810 48 717
ACCOUNTING POLICIES
The financial statements are prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The accounting policies
used in their preparation are consistent with those set out in the Prospectus
except for the adoption of AC133 in the preparation of these results.
Comparative figures
No comparative figures are presented as the company was dormant prior to listing
on 10 June 2002.
Note 1
This amount is to be settled by the issue of 6 600 000 linked units on 15 March
2004.
Group abridged balance sheet
R"000 30 June 2003
ASSETS
Non-current assets
Investment properties 716 379
Current assets
Receivables and pre-payments 12 418
Cash and cash equivalents 43 368
Total assets 772 165
EQUITY AND LIABILITIES
Share capital and reserves 48 717
Non-current liabilities
Debenture capital (net of transaction costs) 256 042
Interest bearing debt 390 010
Deferred taxation 3 630
Current liabilities
Payables 18 211
Amount due to vendors - Note 1 33 000
Debenture interest 22 555
Total equity and liabilities 772 165
Group abridged cash flow statement
R"000 30 June 2003
Cash flow from operating activities
Cash generated from operations before debenture interest
82 282
Debenture interest paid (21 151)
Net cash generated from operating activities
61 131
Investing activities
Investment properties acquired (729 783)
Proceeds on sale of investment property 44 831
Net cash utilised in investing activities (684 952)
Financing activities
Issue of ordinary share capital net
of transaction costs 21 907
Issue of debentures net of
transaction costs 255 542
Proceeds of long-term liability
net of transaction costs 429 038
Less repaid during the period 39 298 389 740
Net cash from financing activities 667 189
Cash and cash equivalents at the
end of the period 43 368
1. Results
The company achieved a total distribution of 75 cents for the period under
review, which is in line with the amount stated in the listing prospectus. The
distribution for the second half of the year at 38,71 cents is greater than the
projection made at the half year. These results were achieved in a generally
difficult environment for the property rental market. The excess of office
market space as a result of the oversupply has depressed office rentals and
industrial rentals are only now starting to show some improvement off a low
base. The four interest rate increases since the company was listed compounded
the difficult market conditions in these sectors as well as in the retail
market. Despite the interest rate increases the company having hedged its
interest rate exposure throughout the period under review was able to contain
interest costs and ensure achievement of the required earnings.
The occupancy rate of the portfolio at 30 June 2003 was 94,3%. The company has
adopted a strategy of tenant retention in order to minimise the level of
vacancies.
2. Distribution per Linked Unit
The board has approved a final distribution of 38,71 cents per linked unit for
the period to 30 June 2003. The last date to trade cum distribution is 22 August
2003, the record date has been set for 29 August 2003 and payment date 1
September 2003.
3. Borrowing and Interest Rate Hedge
Set out below is the company"s borrowings at listing and at 30 June 2003:
Original Balance at
capital 30 June
amount 2003 Maturity
Institution Notes R000"s R000"s
The Standard Bank of (1) 107 000 107 000 30 April
South Africa Limited 2005
The Standard Bank of (1) 248 000 214 230 30 April
South Africa Limited 2007
355 000 321 230
Nedcor Investment Bank Limited (2) 75 388 73 201
430 388 394 431
Less transaction costs 1 350
Total 429 038
Portion payable within 12 months,
included in payables 4 421
390 010
(1) (a) Only interest is payable on the bonds until maturity.
(b) R35 million has been utilised on an access bond facility.
At 30 June 2003 R32,7 million had been deposited into this facility and is
available for future use.
(c) Interest on the loan is at prime overdraft rate less 1,5% on unhedged
amounts.
(d) Interest rate hedges are as follows:
Fixed interest rate:
R320 million fixed at 12,48% NACQ to 10 June 2008.
(2) The Nedcor Investment Bank Limited finance lease facility bears interest at
an effective rate of 13,5% and is amortised annually to 30 September 2009.
The company"s investment properties are bonded to secure the facilities in
favour of Standard Bank and Nedcor Investment Bank above.
4. Profit on the Sale of Investments
As announced in the media on Tuesday, 8 April 2003 the Beach Road property in
Mouille Point, Cape Town was sold and realised a net profit before taxation of
R7,2 million.
5. Segmental Information
Analysis by property usage:
Income/
Invest- (loss)
ment Re- before
R"000 property % venue % financing %
Commercial 235 770 32,9 36 561 26,1 50 214 38,4
Office 366 400 51,1 79 386 56,8 62 475 47,8
Retail 114 200 16,0 23 400 16,7 23 875 18,2
Corporate/unallocated 9 - 514 0,4 (5 784) (4,4)
716 379 100 139 861 100 130 780 100
6. Valuation of Properties
The entire portfolio was valued by independent valuers registered with the South
African Institute of Valuers on the open market basis in existing use. The
valuation of R716,4 million resulted in a surplus of R24,2 million before
capital gains taxation.
7. Capital Commitments
There is a contracted commitment for capital expenditure of R3,7 million. This
will be funded from the group"s resources and facilities.
8. Prospects
The company anticipates difficult trading conditions in the year ahead. The
current initiative to expand the portfolio is focused on reducing its level of
exposure to the office market.
9. Cautionary announcement
Linked unitholders are advised that the company has entered into negotiations,
which if successfully concluded, may have a material effect on the price of the
company"s securities. Accordingly, linked unitholders are advised to exercise
caution when dealing in the company"s securities until a further announcement is
made.
10. Linked unit holders information
R000"s
Share capital and reserves 48 717
Debentures capital 256 042
Linked unit holders" interest 304 759
Net asset value per linked unit (cents) 523
R000"s
Earnings for the period 26 810
Interest distributions 43 706
Total earnings 70 516
Total earnings per linked unit (cents) 121,01
11. REVIEW BY INDEPENDENT AUDITORS
PricewaterhouseCoopers Inc."s unmodified review report on the condensed
financial statements contained in this preliminary report is available for
inspection at the Company"s registered office.
By order of the board
29 July 2003
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
