| Thu 4 May 2006, 10:41 | | Allan Gray - Interim Results and Distribution Anno |
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Allan Gray - Interim Results and Distribution Announcement
Allan Gray Property Trust
Short Name: GRAYPROP
Share code: GRY & ISIN: ZAE000013165
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2006 AND DISTRIBUTION
ANNOUNCEMENT
PROPERTY TRUST
The directors of Allan Gray Property Trust Management Limited, the manager of
Allan Gray Property Trust ("Grayprop"), submit their report on the unaudited
results of Grayprop for the six months ended 31 March 2006.
INCOME STATEMENT
Restated
Unaudited Audited unaudited
6 months to 12 months to 6 months to
31 Mar 2006 30 Sept 2005 31 Mar 2005
R"000 R"000 R"000
Income 280 478 542 213 264 953
Contractual rental income 267 531 507 453 253 304
Straight-line lease accrual 12 947 34 760 11 649
Expenses (74 608) (158 073) (79 747)
Administrative expenses (15 274) (24 880) (11 298)
Property operating expenses (59 334) (133 193) (68 449)
Operating profit 205 870 384 140 185 206
Net finance costs (686) (723) (246)
Interest received 9 693 20 035 9 918
Interest paid (10 379) (20 758) (10 164)
Profit on disposal of
investment properties 1 434 16 247 540
Fair value adjustments to
investment properties (12 947) 1 144 116 (11 649)
Unrealised surplus on
revaluation of investment
properties - 1 178 876 -
Change in straight-line lease
accrual (12 947) (34 760) (11 649)
Net profit for the period 193 671 1 543 780 173 851
Net profit per unit (cents) 19.4 155.0 17.5
Headline earnings per unit
(cents) 20.6 38.5 18.6
Distribution per unit (cents) 19.3 35.0 17.4
Interim distribution per unit
(cents) 19.3 17.4 17.4
Final distribution per unit
(cents) - 17.6 -
Units in issue 996 043 081 996 043 081 996 043 081
Headline earnings and
distribution
income reconciliation
Net profit for the period 193 671 1 543 780 173 851
Adjusted for:
Profit on disposal of
investment properties (1 434) (16 247) (540)
Fair value adjustments to
investment properties 12 947 (1 144 116) 11 649
Headline earnings 205 184 383 417 184 960
Less: straight-line lease
accrual (12 947) (34 760) (11 649)
Less: retained earnings - (42) -
Distribution income 192 237 348 615 173 311
STATEMENT OF CHANGES IN UNITHOLDERS" FUNDS
Restated
Unaudited Audited unaudited
6 months to 12 months to 6 months to
31 Mar 2006 30 Sept 2005 31 Mar 2005
R"000 R"000 R"000
Capital of the fund 1 933 354 1 933 354 1 933 354
Capital reserve
Balance at beginning of the
period 421 754 400 265 400 265
Realised profit on disposal of
investment properties 7 127 21 489 1 226
Balance at end of the period 428 881 421 754 401 491
Revaluation reserve
Balance at beginning of the
period 1 588 147 449 273 449 273
Revaluation reserve realised
on sale of investment
properties (5 693) (5 242) (686)
Fair value adjustments of
investment properties (12 947) 1 144 116 (11 649)
Balance at end of the period 1 569 507 1 588 147 436 938
Retained earnings
Balance at beginning of the
period 218 710 183 908 183 908
Net profit for the period 193 671 1 543 780 173 851
Profit on disposal of
investment properties (1 434) (16 247) (540)
Transfer to revaluation reserve 12 947 (1 144 116) 11 649
Income distributions (192 237) (348 615) (173 311)
Balance at end of the period 231 657 218 710 195 557
Total unitholders" funds 4 163 399 4 161 965 2 967 340
BALANCE SHEET
Unaudited Audited Restated
as at as at unaudited as at
31 Mar 2006 30 Sept 2005 31 Mar 2005
R"000 R"000 R"000
ASSETS
Property assets 4 418 839 4 371 731 3 177 662
Investment properties 4 187 242 4 153 081 2 982 123
Straight-line lease accrual 231 597 218 650 195 539
Current assets 269 277 264 482 249 612
Trade and other receivables 23 515 26 972 29 040
Cash and cash equivalents 245 762 237 510 220 572
Total assets 4 688 116 4 636 213 3 427 274
UNITHOLDERS" FUNDS AND
LIABILITIES
Unitholders" funds 4 163 399 4 161 965 2 967 340
Capital of the fund 1 933 354 1 933 354 1 933 354
Capital reserve 428 881 421 754 401 491
Revaluation reserve 1 569 507 1 588 147 436 938
Retained earnings 231 657 218 710 195 557
Non-current liabilities
Interest-bearing liability 258 000 229 000 214 557
Current liabilities 266 717 245 248 245 377
Trade and other payables 74 481 69 944 72 066
Unitholders for
distribution 192 236 175 304 173 311
Total unitholders" funds
and liabilities 4 688 116 4 636 213 3 427 274
CASH FLOW STATEMENT
Restated
Unaudited Audited unaudited
6 months to 12 months to 6 months to
31 Mar 2006 30 Sept 2005 31 Mar 2005
R"000 R"000 R"000
Cash effects from operating
activities
Profit for the period 193 671 1 543 780 173 851
Adjustments for:
Straight-line lease accrual (12 947) (34 760) (11 649)
Interest received (9 693) (20 035) (9 918)
Interest paid 10 379 20 758 10 164
Profit on disposal of
investment properties (1 434) (16 247) (540)
Fair value adjustments to
investment properties 12 947 (1 144 116) 11 649
Operating profit before
changes in
working capital 192 923 349 380 173 557
Decrease in trade and other
receivables 3 457 5 200 3 132
Increase in trade and other
payables 4 537 17 105 19 226
Cash generated from the
operations 200 917 371 685 195 915
Interest received 9 693 20 035 9 918
Interest paid (10 379) (20 758) (10 164)
Income distributions (175 304) (338 654) (165 343)
Cash flows from operating
activities 24 927 32 308 30 326
Cash effects from investing
activities
Additions to investment
properties (56 975) (104 140) (46 819)
Proceeds from disposal of
investment properties 11 300 61 031 3 197
(45 675) (43 109) (43 622)
Cash effects from financing
activities
Increase in long-term loan 29 000 14 443 -
29 000 14 443 -
Net increase/(decrease) in
cash and cash equivalents 8 252 3 642 (13 296)
Cash and cash equivalents at
beginning of period 237 510 233 868 233 868
Cash and cash equivalents at
end of the period 245 762 237 510 220 572
COMMENTARY
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The unaudited interim results have been prepared in accordance with
International Financial Reporting Standards (IFRS), its interpretations adopted
by the International Accounting Standards Board, IAS 34 - Interim Financial
Reporting and the requirements of the Collective Investment Schemes Control Act
of 2002. IFRS 1 - First-time adoption of International Financial Reporting
Standards has been applied in the preparation of the interim results. No
adjustments have arisen from the conversion to IFRS affecting the financial
position, financial performance and cash flows of the Trust. The accounting
policies are consistent with those applied in the prior year. Adjustments were
made to the comparative period to comply with IAS 17- Leases which had no
impact on opening retained earnings.
2. DISTRIBUTION PER UNIT
Allan Gray Property Trust"s net distributable income for the first six months
of the financial year amounts to 19.3 cents per unit, 10.9 percent greater than
the comparable period last year.
3. CHANGES TO PORTFOLIO
During the period, the following sales were concluded:
Property Net price 2005 valuation Profit
(Rm) (Rm) %
Saxon Industrial Park 4.5 4.3 5
Custom Place 1.3 1.2 8
Crescent Place 2.5 1.9 32
Westar Place 3.0 2.5 20
11.3 9.9 14
4. MAJOR CAPITAL PROJECTS
Significant capital projects and planned projects are:
N1 City Mall (58% share)
Work on the R110 million refurbishment and extension to the N1 City Mall is
nearing completion. The project includes the refurbishment of the existing
mall, the construction of an additional 8 500 m2 and 250 additional parking
bays. The project is expected to generate an initial return of 10.2 percent.
Centurion Mall (75% share)
A further R226 million is to be invested in the complex over the next year. The
retail on the Bayside is to be refurbished to improve the entertainment
offering. Land adjoining the site is to be acquired for the construction of
additional parking. The Munpen Office Tower is to be extensively refurbished
both internally and externally. In addition, an office tower adjoining the
parking land, called Die Anker, has also been acquired for R48 million. Die
Anker will be extensively refurbished and let to a single tenant on a five-year
lease. In total the capital expenditure is expected to generate an initial
return of 9 percent.
The Boulders Shopping Centre
Plans to reconfigure the largely vacant lower level and introduce fashion and
homeware are well advanced. Council approval has been obtained, and final
leasing is being concluded before construction commences. The project is
expected to cost R48 million.
The Brightwater Commons
Due to slow letting the redevelopment has been put on hold to address the
tenant mix of the centre. Meanwhile it is pleasing that foot traffic and
trading at the centre continues to improve.
Benmore Gardens Shopping Centre
Town planning continues to delay the planned refurbishment. Plans include
extensive alterations to the centre to improve the retail mix, parking and
circulation as well as a new store for Pick "n Pay.
Douglas Roberts Centre
Negotiations are nearing conclusion for the refurbishment of the office tower
and construction of the parking garage at a maximum total cost of R155 million.
Murray & Roberts will enter a 10-year lease on completion in October 2007,
based on a 8.5 percent yield with 7 percent per annum escalations.
5. CONTRIBUTION TO DISTRIBUTION
Mar 2006 Sept 2005 Mar 2005
6 months % of 12 months % of 6 months % of
Rm Total Rm Total Rm Total
Retail 143 74 263 75 127 74
Office blocks 31 16 48 14 26 15
Industrial 24 13 46 13 23 13
Specialised 10 5 19 5 9 5
Corporate (16) (8) (27) (7) (12) (7)
Total 192 100 349 100 173 100
6. VACANCY LEVELS
Vacancy levels in terms of rentable area were as follows:
Sector Mar 2006 Sept 2005 Mar 2005
% % %
Retail 5 5 5
Office blocks 7 9 13
Industrial 8 9 6
Specialised - - -
Total 6 6 7
By value, the vacancies equated to 5 percent of potential rental income, the
same as at year-end.
In the retail sector 74 percent of the vacancies were in the Boulders and The
Brightwater Commons reported upon above.
In the office sector, significant vacancies by area and value remain at
Grayston Ridge and 271 Oak Avenue. At Grayston Ridge, with the high tenant
turnover, no improvement is envisaged in the short term. Negotiations have been
concluded to sell 271 Oak Avenue to an end user at a price in excess of the
historic valuation.
In the industrial sector, 23 percent of the vacancy is at Degussa in Midrand,
which remains a challenge to let. Two properties comprising a further 16
percent of this sector"s vacancies have subsequently been let.
7. DISTRIBUTION ANNOUNCEMENT
Notice is hereby given of distribution no. 46 of 19.3 cents per unit for the
six months ended 31 March 2006.
The last date to trade cum the distribution will be Friday, 19 May 2006. The
units of Grayprop will commence trading ex-distribution on Monday, 22 May 2006
and the record date will be Friday, 26 May 2006. The distribution will be paid
on Monday, 29 May 2006.
Unit certificates may not be dematerialised or rematerialised between Monday,
22 May 2006 and Friday, 26 May 2006, both dates inclusive.
BY ORDER OF THE BOARD
Allan Gray Property Trust Management Limited
(Reg No. 1983/003324/06)
3 May 2006
Transfer Secretaries: Computershare Investor Services 2004 (Pty) Ltd, 70
Marshall Street, Johannesburg, 2001, (PO Box 61051, Marshalltown, 2107)
Secretary and registered office: Broll Property Group (Pty) Ltd, Broll House,
27 Fricker Road, Illovo, Johannesburg, 2196, (PO Box 1455, Saxonwold, 2132)
Short Name: GRAYPROP Share code: GRY ISIN: ZAE000013165
Directors: WJC Mitchell (Chairman), JD Rainier (Managing), WT Fairhead, GW Fury
(alternate), DD Govender, WM Kirchmann, SP McCoy, DM Nurek, E Osrin,
S Shaw-Taylor
Sponsor: Standard Bank
e-mail: info@allangray.co.za
website: www.allangray.co.za
Date: 04/05/2006 10:41:15 AM Produced by the JSE SENS Department
