| Wed 13 Dec 2006, 8:03 | | OAS - Oasis Crescent Property Fund - Reviewed 6 mo |
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OAS
OAS
OAS - Oasis Crescent Property Fund - Reviewed 6 months ended 30 September 2006
Oasis Crescent Property Fund
(Incorporated in the Republic of South Africa)
(Registration number 2003/012266/06)
Share code: OAS ISIN: ZAE000074332
("OCPF")
INCOME STATEMENT
for the 6 months ended 30 September 2006
Reviewed 6 months Audited 17 weeks to
to 30 September 2006 31 March 2006
R R
Revenue 13,841,625 6,836,905
Rental and related income 11,962,821 5,939,911
Straight lining of lease income 1,878,804 896,994
Expenses 3,812,932 1,644,706
Property expenses 2,794,741 1,044,985
Other operating expenses 1,018,191 599,721
10,028,693 5,192,199
Fair value adjustment to investment
properties excluding straight lining
of lease income (1,878,804) 18,093,214
Fair value adjustment to investment
properties - 18,990,208
Straight lining of lease income (1,878,804) (896,994)
Operating profit for the period 8,149,889 23,285,413
Net finance income 1,858,002 1,850,693
Interest received 1,862,119 1,850,850
Interest paid (4,117) (157)
Net profit for the period 10,007,891 25,136,106
Basic earnings per unit including
non-permissible income (cents) 46.6 125.7
Headline earnings per unit including
non-permissible income (cents) 55.3 35.2
Interim distribution per unit excluding
non-permissible income (cents) 36.3 20.3
Weighted average units in issue 21,487,500 20,000,000
Headline earnings and distribution
income reconciliation
Net profit for the period 10,007,891 25,136,106
Adjusted for:
Fair value adjustment to investment
properties 1,878,804 (18,093,214)
Headline earnings 11,886,695 7,042,892
Less: Straight line lease accrual (1,878,804) (896,994)
Distribution income including
non-permissible income 10,007,891 6,145,898
Non-permissible rental income (353,978) (244,992)
Non-permissible interest income (1,862,119) (1,850,850)
Distribution excluding
non-permissible income 7,791,794 4,050,056
OASIS CRESCENT PROPERTY FUND
BALANCE SHEET
as at 30 September 2006
Reviewed 30 Audited 31 March
30 September 2006 2006
R R
ASSETS
Non-current assets 236,923,549 134,300,000
Investment properties 234,147,751 133,403,006
Straight line lease accrual 2,775,798 896,994
Current assets 28,703,518 89,582,973
Trade receivables 911,693 361,674
Trade receivables from related parties 159,135 67,200
Cash and cash equivalents 27,632,690 89,154,099
Total assets 265,627,067 223,882,973
UNIT HOLDERS FUNDS AND LIABILITIES
Unit holders funds 252,700,590 217,447,240
Capital of the fund 233,710,382 198,457,032
Retained income - -
Revaluation reserve 18,990,208 18,990,208
Current liabilities 12,926,477 6,435,733
Trade payables 2,608,366 160,688
Trade payables to related parties 263,184 129,147
Unit holders for distribution 7,838,830 4,050,056
Non-permissible income available for
distribution 2,216,097 2,095,842
Total unit holders funds and liabilities 265,627,067 223,882,973
OASIS CRESCENT PROPERTY FUND
STATEMENT OF CHANGES IN UNIT HOLDERS FUNDS
for the 6 months ended 30 September 2006
Capital Revaluation
of the fund reserve
R R
Balance at 01 April 2006 198,457,032 18,990,208
Issue of units 35,253,350 -
Net Profit for the period ended 30
September 2006 - -
Distribution to unit holders - -
Distribution of non-permissible income - -
Balance at 30 September 2006 233,710,382 18,990,208
Retained
income Total
R R
Balance at 01 April 2006 - 217,447,240
Issue of units - 35,253,350
Net Profit for the period ended 30
September 2006 10,007,891 10,007,891
Distribution to unit holders (7,791,794) (7,791,794)
Distribution of non-permissible income (2,216,097) (2,216,097)
Balance at 30 September 2006 - 252,700,590
OASIS CRESCENT PROPERTY FUND
CASH FLOW STATEMENT
for the 6 months ended 30 September 2006
Reviewed 6 months Audited 17 weeks to
to 30 September 2006 31 March 2006
R R
CASH FLOWS FROM OPERATING
ACTIVITIES
Operating profit 10,007,891 25,136,106
Adjusted For:
Interest received (1,862,119) (1,850,850)
Interest paid 4,117 157
Straight line lease accrual (1,878,804) (896,994)
Fair value adjustment to
investment properties
excluding straight lining of
lease income - (18,093,214)
6,271,085 4,295,205
Trade receivables increase (550,019) (361,674)
Trade receivables from related
party increase (91,935) (67,200)
Trade and other payables increase 2,447,678 160,688
Trade payables to related
parties increase 134,037 129,147
Cash generated from operations 8,210,846 4,156,166
Interest paid (4,117) (157)
Interest received 1,862,119 1,850,850
Net cash inflow from operating
activities 10,068,848 6,006,858
CASH FLOWS FROM INVESTING
ACTIVITIES
Acquisition of investment properties (100,744,745) (115,309,792)
Net cash flow from investing
activities (100,744,745) (115,309,792)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issue of units 35,253,350 198,457,032
Unit holders distribution (4,003,020) -
Non permissible income
distribution (2,095,842) -
Net cash flow from financing
activities 29,154,488 198,457,032
NET INCREASE/(DECREASE) IN
CASH AND CASH EQUIVALENTS (61,521,409) 89,154,099
CASH AND CASH EQUIVALENTS
At beginning of period 89,154,099 -
At end of period 27,632,690 89,154,099
Segmental information Retail Offices Industrial
30 September 2006 (6 months) R R R
Segment revenue
Rental and related income 4,901,767 2,899,644 4,161,410
Straight lining of lease income 833,101 430,743 614,960
5,734,868 3,330,387 4,776,370
Segment expense
Property expenses 1,268,071 1,047,564 479,106
Segment result
Operating profit 3,633,695 1,852,080 3,682,304
Segment assets
Investment properties 129,106,843 36,904,615 68,136,293
Straight line lease accrual 962,511 724,169 1,089,118
Trade receivables 339,116 18,072 329,328
Trade receivables from related
parties 159,135 - -
Cash and cash equivalents - - -
130,567,605 37,646,856 69,554,739
Segment liabilities
Trade payables 952,842 29,160 169,199
Trade payables to related parties 9,092 - 49,499
Unit holders for distribution - - -
Non-permissible income available
for distribution - - -
961,934 29,160 218,698
Segmental information Corporate Total
30 September 2006 (6 months) R R
Segment revenue
Rental and related income - 11,962,821
Straight lining of lease income - 1,878,804
- 13,841,625
Segment expense
Property expenses - 2,794,741
Segment result
Operating profit (1,018,190) 8,149,889
Segment assets
Investment properties - 234,147,751
Straight line lease accrual - 2,775,798
Trade receivables 225,177 911,693
Trade receivables from related parties - 159,135
Cash and cash equivalents 27,632,690 27,632,690
27,857,867 265,627,067
Segment liabilities
Trade payables 1,457,165 2,608,366
Trade payables to related parties 204,593 236,184
Unit holders for distribution 7,838,830 7,838,830
Non-permissible income available for
distribution 2,216,097 2,216,097
11,716,685 12,926,477
COMMENTARY
1. Basis of preparation and accounting policies
The reviewed interim results of the Fund have been prepared in accordance with
International Financial Reporting Standards (IFRS), International Accounting
Standard 34 (IAS 34) and the requirements of the Collective Investment Schemes
Control Act of 2002. Revaluation of investment properties are accounted for on
an annual basis. The non-permissible income is distributed to the Crescent
Trust which is a registered public benefit organisation.
There are no comparative figures presented for the previous six months ended 30
September 2005, as 2006 is the first year of operation of the Fund. The
accounting policies are consistent with those applied in the prior period.
PricewaterhouseCoopers Inc has reviewed the financial information set out in
this report. Their unqualified review report is available for inspection at the
Fund`s registered office.
2. Financial results
6 months to 17 weeks
30 to 31
September March
2006 2006
Distribution per unit including non-permissible
income 46.6 30.7
Non-permissible rental per unit (1.6) (1.2)
Non-permissible interest per unit (8.7) (9.2)
Distribution per unit excluding non-permissible
income 36.3 20.3
Property portfolio valuation (Rm) 236.9 134.3
Cash and cash equivalents (Rm) 27.6 89.2
Net asset value per unit (cents) 1100 1087
Listed market price (cents) 1150 1151
The non-permissible interest per unit has reduced substantially since the
acquisition of The Ridge@Shallcross on 1 July 2006.
Changes to portfolio
Sectorial Profile based on gross rental September
2006
Retail 41%
Office 24%
Industrial 35%
Total 100%
As announced on 25 May 2006 The Ridge@Shallcross in Durban, a community
shopping centre, was purchased for R117m effective from 1 July 2006. In terms
of Shari`ah principles the non-permissible component of the property was sold
to eliminate the exposure to non-permissible business activities. This
comprised approximately 12% of rentable area and R15m of the initial purchase
price and a sectional title deed is in the process of being registered.
After substantial delays due to a subdivision, 27 Nourse Avenue, Epping
Industria, Cape Town was transferred effective 15 November 2006 at a total cost
of R10.3m.
Vacancy levels
As at 30 September 2006 the vacancy at the portfolio level is 1%.
Vacancies based on rentable area September
2006
Retail 6%
Office -
Industrial -
At 13-19 Moorsom Avenue, Epping Industria, 3716m2 (4% of portfolio rentable
area) has been earmarked for redevelopment based on a new 5 year lease and will
therefore be vacant due to construction from October 2006 to March 2007.
At 27 Nourse Avenue, Epping Industria, 4400m2 (5% of portfolio rentable area)
has been earmarked for redevelopment based on a new 5 year lease and will
therefore be vacant due to construction from December 2006 to April 2007.
The cost of these redevelopments is estimated at R6 million and will be funded
from existing cash resources.
Outlook
Based on the current outlook for the portfolio and taking into consideration
the vacancies created by the redevelopment of 8116m2 as highlighted above, it
is anticipated that the distribution per unit including non-permissible income
for the 12 months ending 31 March 2007 will be between 100c and 102c per unit.
These figures have not been reviewed by PricewaterhouseCoopers Inc.
Distribution announcement
Notice is hereby given that a distribution, after deducting non-permissible
income, of 36.26 cents per unit has been declared payable to unit holders
recorded in the register of the Fund at the close of business on the record
date, 5 January 2007.
Unit holders are advised that the last day to trade "cum" the distribution will
be 28 December 2006. Payment will be made on 8 January 2007. Unit certificates
may not be dematerialised or rematerialised during the period 29 December 2006
to 5 January 2007, both days inclusive.
BY ORDER OF THE BOARD
Oasis Crescent Property Fund Managers Limited
(Reg No. 2003/012266/06)
12 December 2006
Note: The listing of units in the fund is on the ALTx. Unit holders are advised
of the risks of investing in an entity listed on the ALTx. Unit holders are
advised that the JSE does not guarantee the viability or the success of an
entity listed on the ALTx. In terms of the JSE Listings Requirements a
designated advisor has to be retained by the entity.
The designated advisor is required to, inter alia, attend all board meetings
held by the entity to ensure that all JSE Listings Requirements and applicable
regulations are complied with, approve the financial director of the entity and
guide the entity in a competent, professional and impartial manner. If the
entity fails to retain the designated advisor it must make arrangements to
appoint a new designated advisor within 10 business days, failing which the
entity faces suspension of trading of its securities. If a designated advisor
is not appointed within 30 days of its suspension the entity faces the
termination of its listing without an offer to minority unit holders.
Date: 13/12/2006 08:03:16 Produced by the JSE SENS Department.
