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Condensed unaudited consolidated interim financial statements for three and six months ended 31 March 2018
Greenbay Properties Ltd
Incorporated in the Republic of Mauritius
Reg No C124756 C1/GBL ISIN MU0461N00007
SEM share code: GFP.N0000 and
JSE share code: GRP
("Greenbay" or "the company" or "the group")
www.greenbayprop.mu
Condensed unaudited consolidated interim financial statements for the three
and six months ended 31 March 2018
Directors' commentary
Nature of the business
Greenbay is a Category One Global Business Licence company registered in
Mauritius.The company has primary listings on both the Official Market of
the Stock Exchange of Mauritius Ltd ("SEM") and the Main Board of the
Johannesburg Stock Exchange Limited ("JSE"). Greenbay invests globally in
direct property and infrastructure assets as well as in listed real estate
and infrastructure securities.
Distributable earnings and commentary on results
Greenbay achieved 0,2854 EUR cents of distributable earnings per share for the
first half of the 2018 financial year. The board intends to declare a dividend
of 0,2885 EUR cents per share for the six months ended March 2018. Of the
expected EUR27,373,187 dividend, EUR295,282 will be paid from prior year
retained distributable earnings due to more conservative gearing in the
portfolio. Shareholders will be afforded the option to receive the
distribution either in cash or in scrip. This declaration is subject to any
required approvals and regulatory compliance. A circular with relevant details
and accompanying announcements on the Stock Exchange News Service of the JSE
and the website of the SEM will follow in due course.
In a volatile global economic environment, Greenbay increased its net asset
value per share from 8,66 EUR cents at March 2017 to 8,82 EUR cents at
March 2018, an increase of 1,8%. The net asset value per share has decreased
since September 2017 by 8,0%. Post reporting period end, the net asset value
has benefited from a strong performance in the listed portfolio. At March 2018,
the loan-to-value ratio was 31,3%, which remains below the board's limit of 45%.
At 31 March 2018, Greenbay's portfolio composition was as follows:
Sectoral profile based on fair value of assets
49,1% - Listed infrastructure
36,9% - Listed real estate
14,0% - Direct property
Geographical profile based on fair value of assets
41,9% - USA
33,8% - Europe
10,1% - Canada
5,7% - Australia
4,7% - UK
2,7% - Hong Kong
1,1% - Singapore
The following table indicates the top ten investments by fair value as at March 2018:
Fair value
as at
Mar 2018
Primary sector Jurisdiction EUR '000
Forum Coimbra Direct property Europe 94 948
Planet Koper Direct property Europe 57 701
Unibail-Rodamco SE Listed real estate Europe 51 982
TransCanada Corp Listed infrastructure Canada 51 291
Klepierre Listed real estate Europe 47 502
E.ON SE Listed infrastructure Europe 42 665
Enbridge Inc. Listed infrastructure Canada 42 067
NextEra Energy Inc. Listed infrastructure USA 41 083
Enterprise Products
Partners LP Listed infrastructure USA 40 223
Kinder Morgan Inc. Listed infrastructure USA 36 048
DIRECT INVESTMENTS
As announced on 24 April 2018, Greenbay has concluded an agreement with
Resilient REIT Limited, to acquire the remaining 50% share of the holding
company of Forum Coimbra and Forum Viseu, two retail centres in Portugal, for
a net cash consideration of EUR66,4 million. The transaction is consistent
with Greenbay's strategy to reduce the listed security investments and to
focus on direct property and infrastructure assets. The transaction is subject
to shareholder approval and a circular to shareholders will be distributed
in due course.
The two Portuguese retail centres are performing well. Forum Coimbra and
Forum Viseu recorded year-on-year retail sales growth of 7,6% and 5,6%
respectively, benefiting from the earlier 2018 Easter weekend trading.
At Forum Coimbra, lease renewals have been ahead of expectations with 45
leases concluded during the interim period. Positive rental reversions
of 5,5% on both renewals and new leases were achieved. Management has been
successful at attracting new international brands including JD Sports, Adidas,
Tiger, Nyx, Celeiro, Tomatino and Subway. Tenant demand remains strong and
expansion feasibility studies are in progress. Greenbay is negotiating with
a national gym operator to fill almost all of the remaining vacant space at
Forum Viseu.
The reconfiguration of Planet Koper in Koper, Slovenia, to accommodate new
and expand existing international brands, is progressing well. Management is
engaging with the LPP brands as potential new international entrants to the
mall.
Greenbay disposed of its Tivoli land investment in Ljubljana, Slovenia for
EUR16,2 million. The proceeds of EUR16,2 million were EUR2,2 million above
the book value of the land at September 2017.
Greenbay, along with other bidders, is in the final phase of the bidding
process of a substantial direct infrastructure opportunity. A due diligence
is currently in progress by a team of international advisors and professionals.
The final and binding offer is anticipated to be submitted during May 2018.
In addition, Greenbay is in active discussions on four further direct
infrastructure opportunities in the transportation sector. Management believes
that direct infrastructure is attractively valued when compared to the direct
property sector. In a rising interest rate environment, Greenbay remains
prudent and selective of investment opportunities.
Listed investments
The first three months of 2018 have been characterised by increased volatility
with global equity markets declining, global bond yields rising and energy
prices increasing. Despite the increase in energy prices, many counters in
the energy sector have experienced share price weakness, offering attractive
opportunities. TransCanada is now the second largest listed holding in the
portfolio.
Despite higher bond yields, Greenbay's listed portfolio benefited from merger
and acquisition activity during the period. While high levels of volatility
may continue, the listed portfolio remains well diversified and defensive
with strong growth prospects.
Due to rising interest rates, it was financially beneficial for Greenbay to
rotate from its equity derivative positions to directly held equity holdings.
The directly held equity holdings have increased from 24,6% to
46,9% of the listed portfolio over the period.
Facilities, hedges and derivatives
Equity derivatives offer gearing in the same currency as the underlying
exposure and, together with the equity derivative margin held in EUR,
mitigated currency risk. Due to the increase in directly held listed
investments, and the resultant increase in currency risk, the board reviewed
its policy not to hedge Greenbay's capital exposure. A new policy whereby 25%
of the USD directly held capital exposure is hedged against the EUR has been
implemented for the 2018 financial year. At March 2018, a total of
USD65,3 million was hedged against EUR at a forward rate of 0,8053.
The board's policy is to hedge 90% of non-EUR denominated distributable income
receivable over the forecast period, currently being two years. In line with
this policy, the following hedges are currently in place:
Forward rate
against EUR USD GBP AUD CAD HKD SGD
Sep 2018 0,8274 1,1291 0,6472 0,6584 0,1051 0,6152
Mar 2019 0,8271 1,1180 0,6350 0,6431 0,1043 0,6124
Sep 2019 0,8177 1,1100 0,6296 0,6364 0,1027 0,6047
Summary of financial performance
Net asset
Dividend value Loan-
per share Shares in per share to-value
EUR cents issue EUR cents ratio*
Mar 2017 0,2308 6 302 299 068 8,66 6,5%
Jun 2017 - 7 037 912 566 8,74 20,7%
Sep 2017 0,2360 9 322 176 525 9,59 10,1%
Dec 2017 - 9 488 106 526 9,68 28,7%
Mar 2018 0,2885 9 488 106 526 8,82 31,3%
* The loan-to-value ratio is calculated by dividing total interest-bearing
borrowings adjusted for cash on hand by the total of investments in property,
listed securities and loans advanced.
Outlook
Greenbay's dividends are forecast to increase by 25% per year for the
2018 and 2019 financial years.
The dividend growth is based on the following assumptions:
- That a stable global macro-economic environment will prevail;
- That there will be no failures of listed real estate or infrastructure
securities or of investment counterparties;
- That there will be no material changes in the regulatory or taxation
environment;
- That the only further direct property or infrastructure investment will be
the acquisition of the remaining 50% in the holding company of Forum Coimbra
and Forum Viseu with effect from 1 June 2018. The additional income is
included in the 2018 forecast for four months and in the 2019 forecast for the
full year;
- That further investments in listed real estate and infrastructure securities
will be made in line with the investment policy; and
- That the additional investments in listed securities will be funded by debt
(with a maximum loan-to-value ratio of 45%).
This forecast statement and the assumptions underlying such statement are the
responsibility of the board and have not been reviewed or reported on by the
company's external auditors.
By order of the board
Intercontinental Trust Limited
Company secretary
Mauritius - 7 May 2018
Condensed consolidated statement of comprehensive income
Unaudited Restated1 Unaudited Restated1
for the for the for the for the
six months six months three months three months
ended ended ended ended
Income Mar 2018 Mar 2017 Mar 2018 Mar 2017
statement EUR EUR EUR EUR
Net rental
and related
revenue 1 613 267 2 314 290 629 553 1 156 764
Recoveries and
contractual
rental revenue 2 959 445 2 996 256 1 431 727 1 500 950
Straight-lining
of rental
revenue
adjustment 46 1 118 (1 093) (339)
Rental revenue 2 959 491 2 997 374 1 430 634 1 500 611
Property
operating
expenses (1 346 224) (683 084) (801 081) (343 847)
Income from
equity
derivatives 20 379 374 11 032 082 10 595 946 6 578 386
Income from
investments 5 418 971 31 463 4 323 707 31 463
Fair value
(loss)/gain
on investment
property,
investments
and equity
derivatives (71 111 762) 1 539 259 (86 247 234) 10 203 652
Adjustment
resulting
from straight
-lining of
rental
revenue (46) (1 118) 1 093 339
Profit on
sale of
investments
under
development 2 221 363 - 2 221 363 -
Impairment of
Greenbay share
incentive loans (710 707) - (710 707) -
Fair value
(loss)/gain on
investments (26 250 825) 306 664 (32 113 216) 70 661
Fair value
gain on
currency
derivatives 3 109 001 - 1 689 808 -
Fair value
(loss)/gain
on equity
derivatives (49 480 548) 1 233 713 (57 335 575) 10 132 652
Administrative
expenses (1 441 978) (771 484) (862 656) (457 509)
Foreign
exchange loss (10 138 439) (5 492 273) (7 243 927) (4 735 132)
Income from
joint venture 2 252 730 - 1 208 460 -
Operating
(loss)/profit (53 027 837) 8 653 337 (77 596 151) 12 777 624
Net finance
costs (6 187 316) (1 696 914) (3 034 350) (929 205)
Finance income 326 778 1 078 470 73 814 675 744
Interest on
Greenbay share
incentive loans 42 196 41 252 31 179 12 885
Fair value
adjustment on
interest rate
derivatives - - 11 888 -
Interest
received 284 582 1 037 218 30 747 662 859
Finance costs (6 514 094) (2 775 384) (3 108 164) (1 604 949)
Interest on
borrowings (6 509 078) (2 775 384) (3 103 148) (1 604 949)
Fair value
adjustment
on interest
rate
derivatives (5 016) - (5 016) -
(Loss)/profit
before income
tax expense (59 215 153) 6 956 423 (80 630 501) 11 848 419
Income tax (843 939) (505 685) (539 121) (304 586)
(Loss)/profit
for the period
attributable
to equity
holders of
the company (60 059 092) 6 450 738 (81 169 622) 11 543 833
Other
comprehensive
income net
of tax:
Items that
may sub-
sequently
be reclassified
to profit
or loss
Exchange
differences
on translation
of foreign
operations
- subsidiaries 987 - 972 -
987 - 972 -
Total
comprehensive
(loss)/income
for the period
attributable
to equity
holders of
the company (60 058 105) 6 450 738 (81 168 650) 11 543 833
Basic (loss)/
earnings per
share (EUR
cents) (0,64) 0,13 (0,86) 0,23
1 The restated figures are based on the audited consolidated financial
statements for the year ended September 2016 and the unaudited consolidated
financial statements for three and the six months ended March 2017 and were
translated from GBP to EUR.
Condensed consolidated statement of financial position
Unaudited Audited Restated1
Mar 2018 Sep 2017 Mar 2017
EUR EUR EUR
Assets
Non-current assets 617 630 182 290 757 701 73 746 980
Investment property 57 699 598 57 498 838 56 732 865
Straight-lining of
rental revenue
adjustment 1 116 1 162 1 118
Investment property
under development - 13 942 548 13 629 757
Investment in and
loans to joint
venture 62 185 294 59 361 010 -
Greenbay share
incentive loans 5 353 030 505 679 1 050 762
Investments 492 391 144 159 448 464 2 332 478
Current assets 275 637 205 644 871 133 502 098 853
Equity derivative
margin 58 834 083 233 825 666 182 050 205
Trade and other
receivables 30 394 709 4 457 081 8 825 631
Cash and cash
equivalents 186 408 413 406 588 386 311 223 017
Total assets 893 267 387 935 628 834 575 845 833
Equity and liabilities
Total equity attributable
to equity holders 837 056 698 893 778 890 545 898 913
Stated capital 917 719 017 892 382 767 515 374 482
Non-distributable
reserve (118 841 116) (36 075 289) 13 542 422
Currency translation
reserve (11 027 792) (11 028 779) (9 941 725)
Retained earnings 49 206 589 48 500 191 26 923 734
Total liabilities 56 210 689 41 849 944 29 946 920
Non-current
liabilities 24 444 496 25 144 714 25 846 667
Interest-bearing
borrowings 24 048 026 24 714 857 25 846 667
Deferred tax 396 470 429 857 -
Current liabilities 31 766 193 16 705 230 4 100 253
Interest-bearing
borrowings 1 374 996 1 374 996 1 374 996
Trade and other
payables 29 127 328 14 670 411 2 291 725
Income tax payable 1 263 869 659 823 433 532
Total equity and
liabilities 893 267 387 935 628 834 575 845 833
Total number of shares
in issue 9 488 106 526 9 322 176 525 6 302 299 068
Net asset value per
share (EUR cents) 8,82 9,59 8,66
Condensed consolidated statement of cash flows
Unaudited Restated1
for the for the
six months six months
ended ended
Mar 2018 Mar 2017
EUR EUR
Operating activities
Cash generated from operations 4 287 504 6 425 290
Interest received 284 582 1 037 218
Finance costs (6 509 078) (2 775 384)
Income tax paid (342 066) (204 130)
Dividends paid (2 339 413) (284 482)
Cash (outflow)/inflow from operating
activities (4 618 471) 4 198 512
Investing activities
Share incentive loans
(advanced)/repaid (4 805 155) 1 539 977
(Acquisition)/disposal of listed
security investments (356 972 142) 1 069 830
Net proceeds from sale of investment
property under development 16 163 911 -
Investment in joint venture (1 135 464) -
Decrease/(increase) in equity
derivative position 125 512 022 (83 772 534)
Cash outflow from investing activities (221 236 828) (81 473 038)
Financing activities
Increase in interest-bearing
borrowings - 27 221 663
Proceeds from share issuances 5 675 326 144 979 034
Cash inflow from financing activities 5 675 326 172 200 697
(Decrease)/increase in cash and cash
equivalents (220 179 973) 94 926 171
Cash and cash equivalents at beginning
of the period 406 588 386 216 296 846
Cash and cash equivalents at end of
the period 186 408 413 311 223 017
Cash and cash equivalents consist of:
Current accounts 186 408 413 311 223 017
The decrease in cash and cash equivalents at March 2018 resulted mainly from
the group's investment in direct equity holdings, offset by the subsequent
release of equity derivative margin cash and the disposal of the Tivoli land.
Notes
1. Preparation and accounting policies
The condensed unaudited consolidated interim financial statements for the
three and six months ended 31 March 2018 ("interim financial statements")
have been prepared in accordance with the measurement and recognition
requirements of IFRS, the requirements of IAS 34: Interim Financial Reporting,
the JSE Listings Requirements, the SEM Listing Rules and the Securities Act
of Mauritius 2005.
The accounting policies applied in the preparation of the interim financial
statements are consistent with those applied in the preparation of the audited
consolidated financial statements for the year ended 30 September 2017.
The company is required to publish financial results for the three and
six months ended 31 March 2018 in terms of Listing Rule 12,20 of the SEM. This
report was compiled under the supervision of Kobus van Biljon CA(SA), the
chief financial officer.
On 13 April 2017, the company announced that it had changed its presentation
and functional currency from Pounds Sterling ("GBP") to Euro ("EUR") as
approved by the Mauritian Registrar of Companies effective from 11 April 2017.
As per IAS 21, the financial results of the company will subsequently be
presented in EUR.
In order to satisfy the requirement of IAS 21 with respect to a change in
presentation currency, the comparative financial information was restated
from GBP to EUR using the following exchange rates:
EUR/GBP exchange rate Mar 2017
Closing 0,8485
Average 0,8602
Share capital was translated at the historic rates prevailing at the dates
of the underlying transactions.
These interim financial statements were approved by the board of Greenbay
on 4 May 2018.
These interim financial statements have not been audited, reviewed or
reported on by the company's external auditor.
In terms of IAS 39: Financial Instruments: Recognition and measurement and
IFRS 7, the group's currency and interest rate derivatives as well as the
equity derivatives are measured at fair value through profit or loss and are
categorised as level 2 investments. In terms of IAS 39, investments are
measured at fair value, being the quoted closing price at the reporting date,
and are categorised as level 1 investments.
There were no transfers between levels 1, 2 and 3 during the period. The
valuation methods applied are consistent with those applied in preparing the
previous consolidated financial statements.
This communique is issued pursuant to SEM Listing Rule 12,20 and section
88 of the Securities Act of Mauritius 2005. The board accepts full
responsibility for the accuracy of the information contained in these
financial statements. The directors are not aware of any matters or
circumstances arising subsequent to 31 March 2018 that require any additional
disclosure or adjustment to the financial statements.
Copies of the interim financial statements and the statement of direct and
indirect interests of each officer of the company, pursuant to rule 8(2)(m)
of the Securities (Disclosure Obligations of Reporting Issuers) Rules 2007,
are available free of charge, upon request at Greenbay's registered office
address.
Contact person: Jan Wandrag.
2. Equity derivative margin
In addition to cash, Greenbay utilises its direct listed equity investments
as collateral for the group's equity derivative exposure. At 31 March 2018,
the total equity derivative margin requirement was EUR296 439 993
(31 December 2017: EUR302 846 904).
3. Segmental analysis
Unaudited Audited Restated1
Mar 2018 Sep 2017 Mar 2017
Total assets EUR EUR EUR
Australia 33 522 689 1 781 607 1 116 576
Canada 63 402 836 1 344 166 656 565
Europe 451 639 638 797 174 578 299 620 322
Hong Kong 33 233 232 9 656 029 -
Singapore 12 595 668 1 466 401 701 754
UK 51 041 941 4 738 221 143 686 111
USA 211 314 671 110 977 339 127 986 019
Corporate 36 516 712 8 490 493 2 078 486
893 267 387 935 628 834 575 845 833
Unaudited Restated1
for the for the
six months six months
ended ended
(Loss)/profit for the Mar 2018 Mar 2017
period EUR EUR
Australia (1 103 043) 2 351 013
Canada (12 283 191) 632 789
Europe* (2 062 617) 1 228 909
Hong Kong 1 680 328 -
Singapore (455 745) (229 456)
UK (205 407) (665 752)
USA (36 612 470) 9 294 746
Corporate (9 016 947) (6 161 511)
(60 059 092) 6 450 738
*All net rental and related revenue is included in the Europe segment.
Unaudited
for the
six months
ended
Reconciliation of loss for the period to distribution Mar 2018
proposed EUR
Loss for the period (60 059 092)
Foreign exchange loss 10 138 439
Fair value loss on equity derivatives 49 480 548
Profit on sale of investments under development (2 221 363)
Fair value loss on investments 26 250 825
Fair value gain on currency derivatives (3 109 001)
Fair value adjustment on interest rate derivatives 5 016
Impairment of Greenbay share incentive loans 710 707
Dividends accrued 5 730 791
Non-distributable portion of income from joint venture (52 468)
Antecedent dividend - six months ended 31 March 2018 203 503
Distributable earnings for the period 27 077 905
Distributable earnings retained - at September 2017 2 133 858
Interim distribution proposed (27 373 187)
Distributable earnings retained - at March 2018 1 838 576
4. Headline earnings
Unaudited Restated1
for the for the
six months six months
ended ended
Reconcilliation of (loss)/profit for Mar 2018 Mar 2017
the period to headline (loss)/earnings EUR EUR
Basic earnings - (loss)/profit for the
period attributable to equity holders (60 059 092) 6 450 738
Adjusted for:
- impairment of Greenbay share
incentive loans 710 707 -
– profit on sale of investment
property under development (2 221 363) -
- income tax effect 330 629 -
Headline (loss)/earnings (61 239 119) 6 450 738
Weighted average shares in issue 9 416 370 741 4 993 526 508
Headline (loss)/earnings per share
(EUR cents) (0,65) 0,13
Greenbay has no dilutionary instruments in issue.
Condensed consolidated statement of changes in equity
Non- Currency
distributable translation
Stated capital reserve reserve
EUR EUR EUR
Restated1 at Sep 2016 364 806 890 19 034 695 (20 758 845)
Translation of historical
equity on change of
presentation
currency 10 817 120
Issue of shares -
1 324 503 311 shares on
27 Mar 2017 144 979 034
Profit for the period
Dividend paid
- Dec 2016 5 588 558
- scrip issue
- 56 962 424 shares 5 588 558
- cash
Transfer to non-
distributable reserve (5 492 273)
Restated1 at Mar 2017 515 374 482 13 542 422 (9 941 725)
Issue of shares 362 866 036
Translation of
historical equity on
change of presentation
currency (1 087 040)
Exchange differences on
translation of foreign
operations (14)
Loss for the period
Dividend paid
- Jun 2017 14 142 249
- scrip issue
- 115 613 498 shares
on 14 Jun 2017 14 142 249
- cash
Transfer to non-
distributable reserve (49 617 711)
Balance at Sep 2017 892 382 767 (36 075 289) (11 028 779)
Issue of shares
- 36 414 535 shares on
14 Dec 2017 5 675 326
Dividend paid
- Dec 2017 19 660 924
- scrip issue
- 129 515 466 shares
on 20 Dec 2017 19 660 924
- cash
Exchange differences on
translation of foreign
operations 987
Loss for the period
Transfer to non-
distributable reserve (82 765 827)
Balance at Mar 2018 917 719 017 (118 841 116) (11 027 792)
Retained Total
earnings equity
EUR EUR
Restated1 at Sep 2016 20 853 763 383 936 503
Translation of historical equity on
change of presentation currency 10 817 120
Issue of shares - 1 324 503 311 shares
on 27 Mar 2017 144 979 034
Profit for the period 6 450 738 6 450 738
Dividend paid - Dec 2016 (5 873 040) (284 482)
- scrip issue - 56 962 424 shares (5 588 558) -
- cash (284 482) (284 482)
Transfer to non-distributable reserve 5 492 273 -
Restated1 at Mar 2017 26 923 734 545 898 913
Issue of shares 362 866 036
Translation of historical equity on
change of presentation currency (1 087 040)
Exchange differences on translation of
foreign operations (14)
Loss for the period (13 495 548) (13 495 548)
Dividend paid - Jun 2017 (14 545 706) (403 457)
- scrip issue - 115 613 498 shares
on 14 Jun 2017 (14 142 249) -
- cash (403 457) (403 457)
Transfer to non-distributable reserve 49 617 711 -
Balance at Sep 2017 48 500 191 893 778 890
Issue of shares - 36 414 535 shares on
14 Dec 2017 5 675 326
Dividend paid - Dec 2017 (22 000 337) (2 339 413)
- scrip issue - 129 515 466 shares on
20 Dec 2017 (19 660 924) -
- cash (2 339 413) (2 339 413)
Exchange differences on translation of
foreign operations 987
Loss for the period (60 059 092) (60 059 092)
Transfer to non-distributable reserve 82 765 827 -
Balance at Mar 2018 49 206 589 837 056 698
Management accounts
Basis of preparation
In order to provide information of relevance to investors these management
accounts, which comprise financial information extracted from the condensed
unaudited consolidated interim financial statements for the three and six
months ended 31 March 2018, have been prepared and are presented below to
provide users with the position:
- had the equity investments held through derivative products been accounted
for on a grossed-up basis instead of only accounting for the margin; and
- had the group's interest in Locaviseu, the joint venture in Portugal,
accounted for using the equity method as required by IFRS, been
proportionately consolidated.
The pro forma financial information (management accounts) has
been prepared in terms of the JSE Listings Requirements and
the SAICA Guide on pro forma financial information.
This pro forma financial information has not been reviewed or reported on
by Greenbay's auditor.
Directors' responsibility statement
The preparation of the management accounts is the sole responsibility of the
directors and have been prepared on the basis stated, for illustrative
purposes only, to show the impact on the condensed consolidated statement of
financial position and the condensed consolidated statement of comprehensive
income. Due to their nature the management accounts may not fairly present the
financial position and results of the group in terms of IFRS.
Management account adjustments
Adjustment 1
The equity derivatives are grossed up by multiplying the shares held in
each counter by the quoted closing price of the respective counter at
March 2018. This more accurately reflects the group's assets and liabilities.
Adjustment 2
This adjustment proportionately consolidates the indirect investments in
Forum Coimbra and Forum Viseu that are held through Locaviseu, accounted for
using the equity method. It effectively discloses the group's interest in the
assets, liabilities and results of operations from these investments by
disclosing the consolidated management accounts for the six months ended
March 2018 on a line-by-line basis. Greenbay is satisfied with the quality
of the financial information contained in the management accounts of Locaviseu.
Condensed consolidated statement of financial position
Adjustment 2
Propor-
tionate
consoli-
dation
Adjustment 1 of
Equity investment
derivatives in joint Management
IFRS gross-up venture accounts
Mar 2018 Mar 2018 Mar 2018 Mar 2018
EUR EUR EUR EUR
Assets
Non-current
assets 617 630 182 557 473 450 61 956 709 1 237 060 341
Investment
property 57 699 598 113 210 397 170 909 995
Straight-
lining of
rental revenue
adjustment 1 116 (210 397) (209 281)
Investment
property under - -
development
Investment in
and loan to
joint venture 62 185 294 (62 185 294) -
Greenbay share
incentive
loans 5 353 030 5 353 030
Investments 492 391 144 557 473 450 1 049 864 594
Goodwill - 11 142 003 11 142 003
Current
assets 275 637 205 - 6 492 609 282 129 814
Equity
derivative
margin 58 834 083 (58 834 083) -
Trade and
other
receivables 30 394 709 1 738 652 32 133 361
Cash and cash
equivalents 186 408 413 58 834 083 4 753 957 249 996 453
Total assets 893 267 387 557 473 450 68 449 318 1 519 190 155
Equity and
liabilities
Total equity
attributable
to equity
holders 837 056 698 - - 837 056 698
Stated
capital 917 719 017 917 719 017
Non-
distributable
reserve (118 841 116) (118 841 116)
Currency
translation
reserve (11 027 792) (11 027 792)
Retained
earnings 49 206 589 49 206 589
Total
liabilities 56 210 689 557 473 450 68 449 318 682 133 457
Non-current
liabilities 24 444 496 557 473 450 65 283 470 647 201 416
Interest-
bearing
borrowings 24 048 026 557 473 450 50 683 768 632 205 244
Deferred tax 396 470 14 599 702 14 996 172
Current
liabilities 31 766 193 - 3 165 848 34 932 041
Interest-
bearing
borrowings 1 374 996 1 374 996
Trade and
other payables 29 127 328 3 165 848 32 293 176
Income tax
payable 1 263 869 1 263 869
Total equity
and
liabilities 893 267 387 557 473 450 68 449 318 1 519 190 155
Condensed consolidated statement of comprehensive income
Adjustment 2
Propor-
tionate
consoli-
dation
Adjustment 1 of
Equity investment
derivatives in joint Management
IFRS gross-up venture accounts
for the for the for the for the
six six six six
months months months months
ended ended ended ended
Mar 2018 Mar 2018 Mar 2018 Mar 2018
Income statement EUR EUR EUR EUR
Net rental
and
related
revenue 1 613 267 - 3 502 944 5 116 211
Recoveries
and contractual
rental
revenue 2 959 445 4 833 906 7 793 351
Straight-lining
of rental
revenue
adjustment 46 15 358 15 404
Rental revenue 2 959 491 - 4 849 264 7 808 755
Property
operating
expenses (1 346 224) (1 346 320) (2 692 544)
Income from
equity
derivatives 20 379 374 20 379 374
Income from
investments 5 418 971 5 418 971
Fair value
loss on
investment
property,
investments
and equity
derivatives (71 111 762) - 52 468 (71 059 294)
Adjustment
resulting from
straight-lining
of rental
revenue (46) 32 996 32 950
Fair value gain
on investment
property - - 19 472 19 472
Profit on sale
of investment
property
development 2 221 363 2 221 363
Impairment of
Greenbay share
incentive loans (710 707) (710 707)
Fair value loss
on investments (26 250 825) (26 250 825)
Fair value
gain on
currency
derivatives 3 109 001 3 109 001
Fair value
loss on equity
derivatives (49 480 548) (49 480 548)
Administrative
expenses (1 441 978) (57 141) (1 499 119)
Foreign
exchange
loss (10 138 439) (10 138 439)
Income from
joint venture 2 252 730 (2 252 730) -
Loss before net
finance costs (53 027 837) - 1 245 541 (51 782 296)
Net finance
costs (6 187 316) - (728 127) (6 915 443)
Finance income 326 778 - - 326 778
Interest on
share incentive
loans 42 196 42 196
Interest
received 284 582 - 284 582
Finance costs (6 514 094) - (728 127) (7 242 221)
Interest on
borrowings (6 509 078) 5 680 415 (728 127) (1 556 790)
Fair value
adjustment on
interest rate
derivatives (5 016) (5 016)
Interest on equity
derivatives - (5 680 415) (5 680 415)
Loss before
income tax (59 215 153) - 517 414 (58 697 739)
Income tax (843 939) (517 414) (1 361 353)
Loss for the
period (60 059 092) - - (60 059 092)
Directors:
Terry Warren (chairman); Stephen Delport (CEO)*; Kobus van Biljon*;
Jan Wandrag*, Karen Bodenstein; Teddy Lo Seen Chong; Mark Olivier;
Barry Stuhler (*executive director)
There were no changes to the board of directors during the quarter
Mauritian management company and company secretary:
Intercontinental Trust Ltd
Registered address:
C1-401, 4th Floor, La Croisette, Grand Baie, Mauritius
Transfer secretary in South Africa:
Link Market Services South Africa Proprietary Ltd
JSE sponsor:
Java Capital
SEM authorised representative and sponsor:
Perigeum Capital Ltd
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