| Thu 9 Feb 2006, 8:48 | | Diversified - Unaudited Interim Results For Three |
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DIV
DIV
Diversified - Unaudited Interim Results For Three Months Ended 31 December 2005
Diversified Property Fund Limited
Registration number 2005/029685/06
Incorporated in the Republic of South Africa
("Diversified" or "the company")
JSE code: DIV ISIN: ZAE000072369
Unaudited interim results and distribution announcement
Directors" Commentary
Strategy
In the short period since listing on 6 October 2005 management has concentrated
on bedding down the portfolio of properties. As reflected in the financial
results, both the industrial and retail portfolios are performing ahead of
budget. This bodes well for the results for the remainder of the financial year
to June 2006.
Diversified"s future strategy remains focused on rural retail developments and a
number of proposed developments are currently being evaluated.
Acquisitions
Checkers Queenstown
Diversified has acquired the 2 682 m2 Checkers in the centre of Queenstown for
R10,4 million payable in cash. This property is adjacent to Bradlows, Queenstown
(owned by Diversified), and the combined site opens up the possibility of
developing additional retail space.
Pick "n Pay New Redruth
This retail development is located in Alberton and will be anchored by Pick "n
Pay, Clicks and Woolworths. The development will have a GLA of 11 400 m2 and the
estimated purchase price of R104 million is based on a guaranteed first year
forward yield of 9,5%. Construction has commenced and completion is scheduled
for October 2006.
Rivonia Village
Diversified acquired this retail and office complex for R93,9 million payable in
cash at a forward yield of 11%. The centre comprises 14 500 m2 of retail
anchored by Woolworths and Clicks, and an office block component of 6 500 m2.
The transaction remains subject to competition commission approval.
Disposals
Diversified sold 4 638 081 units in Capital Property Fund at an average price at
R4,09 to part fund the new property acquisitions.
Developments planned for 2006
Pick "n Pay, Newton Park
This centre is scheduled for an alteration to its configuration and an extension
of 260 m2 to accommodate a new Wimpy outlet and expansion of the Pick "n Pay
trading area.
Market Square, Grahamstown
Planning is in an advanced stage to extend the centre by an additional 3 300 m2
to accommodate a new 650 m2 Jet Stores and extensions to Pep Stores and Discom.
Vryheid Plaza
The existing Score Supermarket is to be replaced by a Boxer Superstores (also
part of the Pick "n Pay Group). An extension of 2 000 m2 and extension of the
existing taxi rank is currently being evaluated.
Mussina Shopping Centre
Negotiations are at an advanced stage to extend the Spar Supermarket by 220 m2
and to renew the Spar corporate lease for a further period of 10 years.
Isando Business Park
Discussions are under way with a multinational to redevelop a portion of the
property to accommodate their warehousing and office requirements of
approximately 4 700 m2. If successfully concluded, construction will commence in
May 2006.
By order of the board
David Lewis Jacques van Wyk
Managing Director Financial Director
Johannesburg
9 February 2006
Registered office Transfer secretaries
2nd Floor Ultra Registrars (Pty) Ltd
66 Park Lane 11 Diagonal Street
Sandown Johannesburg
2196 2001
Directors:
Mike Tshishonga (Chairman)#; Hayden Bamford; Des de Beer; David Lewis; Holden
Marshall#; Gugu Mazibuko#; Marius Muller; David Savage#; Manosagaran
Subramanien#; Nomatembo Tambo#; Andrew Teixeira; Jacques van Wyk; Djurk Venter#
Company secretary: AA Bornman
# Independent non-executive
Consolidated income statement
For the 3 months ended
31 Dec 2005
Unaudited
R"000
Gross rental income 25 239
Amortised lease escalations 1 992
Property operating expenses (7 943)
Net rental and related income 19 288
Distribution income from listed equity investments 719
Total distribution income 719
Profit on disposal of listed property securities 180
Profit on disposal of investments 180
Valuation adjustment resulting from amortised lease
escalations (1 992)
Valuation gains on listed property securities 1 432
Valuation losses on investments (560)
Valuation adjustment on interest rate swaps (1 988)
Administrative expenses (120)
Listing costs (1 365)
Other expenses (2 951)
Net operating income before net financing costs 13 203
Financing income from the incentive trust 1 043
Interest on units issued cum distribution 426
Interest on borrowings (5 847)
Interest to linked debenture holders (12 492)
Net financing costs (16 870)
Loss before tax (3 667)
Income tax 303
Loss for the period (3 364)
For the 3 months ended
31 Dec 2005
Unaudited
Reconciliation of headline earnings per linked unit Cents
Earnings per share (3,58)
Interest to linked debenture holders 13,28
Earnings per linked unit 9,70
Adjusted for:
- valuation gains on listed property securities (1,52)
- profit on disposal of listed property securities (0,19)
- impairment of goodwill 2,04
- taxation effect 0,47
0,80
Headline earnings per linked unit 10,50
A distribution of 12,91 cents per linked unit will be paid to unitholders on 13
March 2006.
Earnings per share, earnings per linked unit and headline earnings per linked
unit are based on the weighted average of 94 097 110 linked units in issue.
Consolidated balance sheet
31 Dec 2005
Unaudited
R"000
Assets
Investment properties 649 473
Investments in listed property securities 22 978
Other asset investments 49 352
Total non-current assets 721 803
Trade and other receivables 900
Cash and cash equivalents 5 207
Total current assets 6 107
Total assets 727 910
Equity
Issued capital 968
Share premium 21 221
Non-distributable reserves (3 364)
Retained earnings -
Total equity 18 825
Liabilities
Linked debenture liabilities 464 455
Interest-bearing borrowings 227 848
Deferred tax liabilities 3 511
Total non-current liabilities 695 814
Trade and other payables 753
Linked debenture interest payable 12 492
Income tax payable 26
Total current liabilities 13 271
Total liabilities 709 085
Total equity and liabilities 727 910
Consolidated statement of changes in equity
Non-dis-
Issued Share tributable Retained
capital premium reserves earnings Total
Unaudited R"000 R"000 R"000 R"000 R"000
Issue of units 968 21 221 22 189
Loss for the period (3 364) (3 364)
Transfer to reserves (3 364) 3 364 0
Balance at 31 Dec 05 968 21 221 (3 364) 0 18 825
Abridged consolidated statement of cash flows
For the 3 months ended
31 Dec 2005
Unaudited
R"000
Cash flows from operating activities 12 949
Cash flows from investing activities (658 937)
Cash flows from financing activities 651 195
Cash and cash equivalents at 31 December 2005 5 207
Notes
1 Preparation
This interim report has been prepared in accordance with International Financial
Reporting Standards (IFRS) and the requirements of the Companies Act (Act 61 of
1973) and was not audited or reviewed by the company"s auditors.
2 Summary of financial performance
31 Dec 2005
Net asset value per linked unit 499 cents
Distribution per linked unit 12,91 cents
Gearing ratio 34,9%
Units in issue 96 761 507
The distribution result above exceeds forecast distribution per unit by 2,7% for
the 3 months to 31 December 2005 (the company therefore confirms that, in terms
of JSE Listings Requirements and pro rata for the interim period, the forecast
income as per the prospectus has been materially achieved). The excess
distribution was calculated after taking into account higher distributable
income and an additional 8 202 500 units issued during the period under review.
The board is confident that the distribution forecast of 39,45 cents per unit
for the nine months to 30 June 2006, as contained in the listings prospectus
dated 26 September 2005, will be achieved.
3 Borrowings
The interest rate profile of the group is shown below.
Amount % of
Expiry R"million Interest rate borrowings
October 2006 50,0 8,93% 21,3%
October 2008 50,0 9,48% 21,3%
October 2010 50,0 9,76% 21,3%
Interest rate hedges 150,0 9,39% 63,8%
Prime linked 85,0 9,00%* 36,2%
Total borrowings 235,0 9,25% 100,0%
* Based on the current prime lending rate of 10,50%
4 Payment of interim distribution
The board has approved and notice is hereby given of an interim distribution
(distribution No 1) of 12,91 cents per linked unit for the three months to 31
December 2005.
The last date to trade linked units cum distribution will be Friday, 3 March
2006 and trading will commence ex distribution on Monday, 6 March 2006. The
record date to participate in the distribution will be Friday, 10 March 2006.
Linked unit certificates may not be dematerialised or rematerialised between
Monday, 6 March 2006 and Friday, 10 March 2006, both days inclusive.
Payment of the distribution will be made to linked unitholders on Monday, 13
March 2006. In respect of dematerialised linked unitholders, the distribution
will be transferred to the Central Securities Depository Participant
accounts/broker accounts on Monday, 13 March 2006. Certificated linked
unitholders" distribution payments will be posted on or about Monday, 13 March
2006.
*** end of press release ***
Date: 09/02/2006 08:48:45 AM Produced by the JSE SENS Department
