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Resilient - Reviewed Interim Report For The 7 Months Ended 30 June 2003
Release Date: 07/08/2003 17:30:02 Code(s): RES
Resilient - REVIEWED INTERIM REPORT FOR THE 7 MONTHS ENDED 30 JUNE 2003
Resilient Property Income Fund Limited
(Incorporated in the Republic of South Africa)
Registration number 2002/016851/06
Share code: RES ISIN: ZAE000043642
REVIEWED INTERIM REPORT FOR THE 7 MONTHS ENDED 30 JUNE 2003
ABRIDGED CONSOLIDATED INCOME STATEMENT
Reviewed
7 months to
30 June 2003
R"000
Revenue 73 267
Net operating expenses (17 420)
Investment income 3 076
Operating profit 58 923
Loss on sale of investment properties (266)
Profit on sale of equity investments 2 633
Profit before interest 61 290
Net financing cost (23 421)
Interest to debenture holders (35 502)
Profit before exceptional items 2 367
Listing cost (3 370)
Loss before taxation (1 003)
Income tax on capital gains (355)
Net loss for the period (1 358)
Earnings per linked unit (cents) (1.81)
Adjusted for:
- interest to debenture holders 47.30
- net capital investment profit (2.68)
- listing cost 4.49
Headline earnings per linked unit cents) 47.30
Distribution per linked unit (cents) 45.10
Earnings per linked unit and headline earnings per linked unit is based on the
weighted average of 75 065 122 linked units in issue for the period 1 December
2002 to 30 June 2003. Distribution per linked unit is based on 78 718 453
linked units in issue on 30 June 2003.
ABRIDGED CONSOLIDATED BALANCE SHEET
Reviewed
30 June 2003
R"000
Assets
Non current assets
Investment properties 674 937
Current assets 75 602
Accounts receivable 2 803
Cash and cash equivalents 72 799
TOTAL ASSETS 750 539
Equity and liabilities
Share capital and premium 16 567
Non-distributable reserve 2 012
Retained loss (3 370)
Capital and reserves 15 209
Linked debentures 377 849
Linked unitholders" capital 393 058
Other non current liabilities
Loans 315 599
Current liabilities 41 882
Accounts payable 6 025
Taxation 355
Unitholders" distribution 35 502
TOTAL EQUITY AND LIABILITIES 750 539
Net asset value per linked unit (cents) 499
(based on 78 718 453 linked units in issue)
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Reviewed
7 months to
30 June 2003
R"000
Cash generated by operations 62 145
Net interest paid (23 421)
Net cash inflow from operating activities 38 724
Investment activities (672 570)
Finance raising activities 314 659
Raising of unitholders" capital 391 986
Cash and cash equivalents 72 799
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Non-
Distri- Distri-
Share Share butable butable
Capital Premium Reserve Reserve Total
R"000 R"000 R"000 R"000 R"000
Incorporation* - -
Issue of units on 6 December 2002 677 11 065 11 742
Issue of units on 17 December 2002 20 361 381
Issue of units on 14 January 2003 5 111 116
Issue of units on 11 February 2003 20 361 381
Issue of units on 31 March 2003 65 3 882 3 947
Net loss for the period (1 358) (1 358)
Transfer to non-distributable reserve 2 012 (2 012) -
Balance at 30 June 2003 787 15 780 2 012 (3 370) 15 209
* Less than R1 000
NOTES
1. Preparation and review opinion
The interim report has been prepared in accordance with the company"s
accounting policies as set out in the Prospectus dated 27 November 2002,
South African Statements of Generally Accepted Accounting Practice and the
requirements of the Companies Act (Act 61 of 1973).
KPMG Inc. has reviewed the financial information set out in the interim
report. The unqualified review opinion is available for inspection at the
company"s registered office.
2. Commentary on the results for the seven months to 30 June 2003
Resilient"s maiden interim results for the period under review are in line
with the forecast. Operating income for the property portfolio exceeded
projections, enabling the company to accelerate the strategy of disposing of
smaller properties.
The proceeds from the disposal of the investment in Shops for Africa Limited
linked units exceeded the access facilities available and as a result R20
million of fixed interest rates were unfixed at a cost of R729 000.
3. Facilities and borrowings
In addition to the facilities disclosed in the Prospectus, Standard Bank of
South Africa Limited approved a facility of R21,3 million during the period
under review. The company has total facilities of R387 million of which R316
million are utilised.
Resilient"s interest rate profile is as follows:
Borrowings % of
Fixed rate expiry (R million) Interest rate Borrowings
85,6 prime less 1,50% 27,1%
December 2005 30,0 14,15% 9,5%
December 2007 140,0 14,30% 44,4%
December 2009 60,0 13,90% 19,0%
315,6 14,13% 100,0%
4. Vacancies, lease expiry profile and sector composition
Vacancies based on rental improved to 4,0% from 4,9% at listing. There has
been no material change in the sector composition.
5. Acquisitions
The following acquisitions were made during the period under review. The
acquisitions did not have a material impact on the forecast distribution per
unit or the net asset value per unit.
5.1 Shops for Africa Limited
Resilient acquired 22 909 702 Shops for Africa linked units at 210 cents per
linked unit. The board accepted an unsolicited offer to acquire this
holding at 230 cents per linked unit plus a final distribution of 15,22
cents per linked unit, on 30 May 2003.
5.2 The Bridge, Port Elizabeth
A 17,7683% interest in the property known as The Bridge in Port Elizabeth,
was acquired at a cost of R20,6 million on 20 May 2003. This property is
adjacent to Greenacres and is anchored by Shoprite and Game.
5.3 Shoprite Rustenburg
This retail centre in Rustenburg with a Shoprite Checkers headlease expiring
in March 2009, was acquired at a cost of R11,9 million.
5.4 Chemserve Spartan
This single tenanted industrial property in Spartan, let to a Chemserve
subsidiary with a lease expiring in December 2008, was acquired for R5,34
million. The acquisition includes a portion of vacant land for development.
6. Disposals
In line with the strategy to dispose of small properties, the following
properties were sold during the period under review. The disposal of these
properties did not have a material impact on the forecast distribution per
unit or the net asset value per unit.
Prospectus Carrying
Property valuation value Sale price
(Rand) (Rand) (Rand)
Metraclark Pretoria 850 000 872 500 565 000
Shell Crown Mines 700 000 718 500 719 800
Ackermans Brakpan 612 500 628 700 750 000
Shell Bellville 235 000 241 200 325 000
2 397 500 2 460 900 2 359 800
7. Prospects
The board is confident that the portfolio will continue to perform strongly
for the remainder of the financial year and that the distribution forecast of
86,6 cents per linked unit for the full year will be achieved.
8. Declaration of distribution to linked unitholders
The board has approved and notice is hereby given of an interim distribution
of 45,10 cents per linked unit for the period 1 December 2002 to 30 June
2003.
The last date to trade linked units cum-distribution will be Friday 22 August
2003 and trading will commence ex-distribution on Monday 25 August 2003. The
record date to participate in the distribution will be Friday 29 August 2003.
Linked unit certificates may not be dematerialised or rematerialised between
Monday 25 August 2003 and Friday 29 August 2003, both days inclusive.
Payment of the distribution will be made to linked unitholders on Monday 1
September 2003. In respect of dematerialised linked unitholders, the
distribution will be transferred to the Central Securities Depository
Participant accounts/broker accounts on 1 September 2003. Certificated linked
unitholders" distribution payments will be posted on or about 1 September
2003.
By order of the Board
AS Nkonyeni D de Beer
Chairman Managing Director
Johannesburg
8 August 2003
REGISTERED OFFICE TRANSFER SECRETARIES
57 6th Road Computershare Limited
Hyde Park 70 Marshall Street
2196 Johannesburg, 2001
Directors: AS Nkonyeni (Chairman) #, JJG da Costa #, D de Beer*, MP Greyling,
JG Kirchner #, DJ Lewis*, MJN Njeke, BL Stuhler*, PA Theodosiou #,
R Turner #, BD van Wyk #, JN Zidel*
MH Muller (alternate director)
JJ van Wyk (company secretary)
* Executive # Independent non-executive
