Wrap Text
Unaudited condensed consolidated interim results for the six months ended 28 February 2019
INGENUITY PROPERTY INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2000/018084/06
JSE share code: ING
ISIN code: ZAE000127411
("Ingenuity" or "the company" or "the group")
UNAUDITED CONDENSED CONSOLIDATED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2019
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
AS AT 28 FEBRUARY 2019
Unaudited Audited
six months ended year ended
28 Feb 2019 31 Aug 2018
R'000 R'000
ASSETS
Non-current assets 3 922 627 3 769 551
Fair value of investment property 3 135 943 3 155 140
Investment properties under development 392 187 327 325
Development properties – land 250 408 137 282
Straight-line rental adjustment 100 832 96 353
Fair value of property assets 3 879 370 3 716 100
Property and equipment 13 872 14 043
Investment in joint venture 29 086 29 146
Derivative assets 299 10 262
Current assets 214 749 199 663
Trade and other receivables 24 212 21 565
Straight-line rental adjustment 11 829 10 152
Inventory 159 027 130 133
Cash and cash equivalents 19 681 37 813
TOTAL ASSETS 4 137 376 3 969 214
EQUITY AND LIABILITIES
Shareholders' interest 1 576 530 1 602 906
Stated capital 680 130 747 610
Treasury shares (75 347) (69 541)
Non-distributable reserve 587 499 576 284
Retained earnings 384 248 348 553
Total equity attributable to equity holders of the parent 1 576 530 1 602 906
Non-current liabilities 1 436 250 1 231 602
Borrowings 1 131 582 942 946
Derivative liabilities 29 510 15 556
Deferred taxation liability 275 158 273 100
Current liabilities 1 124 596 1 134 706
Trade and other payables 43 253 73 735
Current portion of borrowings 1 053 163 1 001 954
Prepaid rent received 15 677 20 750
Taxation payable – 23 128
Share-based incentives valuation 12 503 15 139
TOTAL EQUITY AND LIABILITIES 4 137 376 3 969 214
NOTES TO THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Net asset value per share 145 139
(based on number of shares in issue at end of period net of treasury shares) 1 081 328 144 1 148 933 920
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2019
Unaudited Unaudited
six months ended six months ended
28 Feb 2019 28 Feb 2018
R'000 R'000
Revenue, excluding straight-line rental revenue adjustment 176 869 224 667
Straight-line rental revenue adjustment 6 156 4 017
Revenue 183 025 228 684
Property expenses (64 203) (71 506)
Net property income 118 822 157 178
Other operating expenses (9 490) (8 831)
Operating profit before fair value adjustments and net finance costs 109 332 148 347
Fair value adjustments 51 602 113 054
Gains on investment and development properties 72 480 146 607
Losses to investment and development properties (23 515) (33 154)
Gains/(losses) on share-based incentives 2 637 (399)
Finance income 985 14 188
Finance costs (80 779) (131 735)
Equity-accounted investment loss (5 610) (4 338)
Profit before taxation 75 530 139 516
Taxation (11 400) (48 249)
Profit after taxation 64 130 91 267
Profit attributable to:
Equity holders of the parent 64 130 89 549
Non-controlling interest – 1 718
64 130 91 267
Profit after taxation 64 130 91 267
Other comprehensive income:
To be reclassified subsequently to profit or loss:
Cash flow hedges (23 917) 14 941
Income tax relating to components of other comprehensive income 6 697 (4 183)
Other comprehensive income net of tax (17 220) 10 758
Total comprehensive income 46 910 102 025
Attributable to:
Equity holders of the parent 46 910 100 307
Non-controlling interest – 1 718
46 910 102 025
NOTES TO THE CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
EARNINGS PER SHARE
Basic and diluted earnings per share (cents) 5.6 7.6
Headline and diluted headline earnings per share (cents) 2.5 0.5
Total shares in issue 1 193 888 216 1 255 995 859
Number of shares in issue, net of treasury shares 1 081 328 144 1 176 609 495
Weighted average number of shares 1 141 307 692 1 176 828 028
Headline earnings are calculated as follows:
Earnings attributable to equity holders 64 130 89 549
Net fair value adjustment to investment properties (48 965) (113 453)
Deferred tax on net fair value adjustment 13 036 29 730
Adjusted earnings for HEPS 28 201 5 826
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2019
Unaudited Unaudited
six months ended six months ended
28 Feb 2019 28 Feb 2018
R'000 R'000
Cash flows from operating activities
Cash generated from operations 68 973 118 228
Finance income received 985 14 188
Finance costs paid (79 746) (129 785)
Taxation paid (25 774) (1 091)
Dividends paid to shareholders – (660)
Net cash (outflow)/inflow from operating activities (35 562) 880
Cash flows from investing activities
Additions to property and equipment (36) (66)
Acquisitions/additions to investment properties (8 341) (21 259)
Acquisitions/additions to investment properties under development (78 948) (48 207)
Acquisitions/additions to development properties – land (126) (967)
Proceeds from disposal of development properties – land 45 000 –
Interest capitalised to investment properties under development (8 241) (12 609)
Additions to equity-accounted interest (5 550) (200)
Net cash (outflow) from investing activities (56 242) (83 308)
Cash flows from financing activities
Finance lease payments – (155)
Purchase of treasury shares (5 806) (205)
Purchase of ordinary shares (67 479) –
Financial liabilities raised 186 613 68 142
Financial liabilities repaid (39 656) (30 000)
Net cash inflow from financing activities 73 672 37 782
Net (decrease) in cash and cash equivalents (18 132) (44 646)
Cash and cash equivalents at beginning of period 37 813 94 432
Cash and cash equivalents at end of period 19 681 49 786
CONSOLIDATED STATEMENTS OF
CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2019
Non- Non-
Stated Treasury distributable Retained controlling
capital shares reserve earnings interest Total
R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 September 2017 747 610 (42 161) 556 169 178 762 14 818 1 455 198
Total comprehensive income for the period – – 10 758 89 549 1 718 102 025
Profit for the period – – – 89 549 1 718 91 267
Other comprehensive income – – 10 758 – – 10 758
Net change in fair value of cash flow hedge
recognised directly in other comprehensive
income – – 10 758 – – 10 758
Transfer to non-distributable reserve
– fair value adjustments to investment properties – – 83 723 (83 723) – –
Dividend paid – – – – (660) (660)
Purchase of treasury shares – (205) – – – (205)
Balance at 28 February 2018 747 610 (42 366) 650 650 184 588 15 876 1 556 358
Total comprehensive income for the period – – 30 901 58 698 (572) 89 027
Profit for the period – – – 58 698 (572) 58 126
Other comprehensive income – – 30 901 – – 30 901
Other comprehensive income – cash flow
hedges – – 30 901 – – 30 901
Transfer from non-distributable reserve
– fair value gain realised on investment
properties sold – – (123 498) 123 498 – –
Transfer to non-distributable reserve
– fair value adjustments to investment properties – – 18 231 (18 231) – –
Purchase of treasury shares – (27 175) – – – (27 175)
Non-controlling interest on disposal of subsidiary – – – – (15 304) (15 304)
Balance at 31 August 2018 747 610 (69 541) 576 284 348 553 – 1 602 906
Total comprehensive income for the period – – (17 220) 64 130 – 46 910
Profit for the period – – – 64 130 – 64 130
Other comprehensive income – – (17 220) – – (17 220)
Net change in fair value of cash flow hedge
recognised directly in other comprehensive
income – – (17 220) – – (17 220)
Transfer from non-distributable reserve
– fair value gain realised on investment
properties sold – – (7 495) 7 495 – –
Transfer to non-distributable reserve
– fair value adjustments to investment properties – – 35 930 (35 930) – –
Buy back of ordinary shares – cancelled (67 480) – – – – (67 480)
Purchase of treasury shares – (5 806) – – – (5 806)
Balance at 28 February 2019 680 130 (75 347) 587 499 384 248 – 1 576 530
SEGMENTAL INFORMATION
Development Light Straight-
Unaudited for the six months ended Offices Retail Properties Parking Industrial Other lining Total
28 February 2019 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Additions to non-current assets,
including transfers between segments (15 365) (47 719) 184 249 (6 514) (562) 2 471 – 116 560
Disposals of non-current assets – – (45 000) – – – – (45 000)
Total assets 2 208 568 436 725 796 400 429 726 86 769 179 188 – 4 137 376
Borrowings – – 347 846 – – 1 836 899 – 2 184 745
Revenue 123 172 19 900 1 610 21 910 4 746 5 531 6 156 183 025
Profit/(loss) before fair value
adjustment 77 908 11 039 (249) 15 225 3 884 (4 631) 6 156 109 332
Fair value adjustment 34 722 (10 425) 17 330 5 309 325 4 341 – 51 602
Profit/(loss) before interest and
taxation 112 630 614 17 081 20 534 4 209 (290) 6 156 160 934
Finance income – – – – – 985 – 985
Finance costs – – – – – (80 779) – (80 779)
Equity-accounted investment loss – – – – – (5 610) – (5 610)
Profit/(loss) before taxation 112 630 614 17 081 20 534 4 209 (85 694) 6 156 75 530
Development Light Straight-
Unaudited six months ended Offices Retail Properties Parking Industrial Other lining Total
28 February 2018 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Additions to non-current assets,
including transfers between segments 26 604 (18 036) 135 891 8 163 (648) (19 126) – 132 848
Total assets 2 721 299 847 251 432 388 554 130 87 011 175 489 – 4 817 568
Borrowings – – 109 300 – – 2 722 182 – 2 831 482
Revenue 143 772 43 897 270 27 857 4 471 4 400 4 017 228 684
Profit/loss before fair value
adjustment 95 563 31 252 (550) 20 236 3 586 (5 757) 4 017 148 347
Fair value adjustment 76 577 18 393 – 14 307 2 336 1 441 – 113 054
Profit/loss before interest and taxation 172 140 49 645 (550) 34 543 5 922 (4 316) 4 017 261 401
Finance income – – – – – 14 188 – 14 188
Finance costs – – – – – (131 735) – (131 735)
Equity-accounted investment loss – – – – – (4 338) – (4 338)
Profit/(loss) before taxation 172 140 49 645 (550) 34 543 5 922 (126 201) 4 017 139 516
Development Light Straight-
Audited year ended Offices Retail Properties Parking Industrial Other lining Total
31 August 2018 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Additions to non-current assets,
including transfers between segments 48 015 (54 751) 298 307 (6 876) (933) (143 245) – 140 517
Disposals of non-current assets (581 813) (299 776) – (112 483) – (131) – (994 203)
Total assets 2 189 211 494 869 594 821 430 931 87 005 172 377 – 3 969 214
Borrowings – – 207 939 – – 1 736 961 – 1 944 900
Revenue 292 196 83 701 2 321 55 218 9 111 9 453 16 379 468 379
Profit/loss before fair value
adjustment 194 381 56 415 (688) 39 914 7 354 (5 632) 16 379 308 123
Fair value adjustment 104 892 2 502 17 18 630 2 616 4 377 – 133 034
Profit/loss before interest and taxation 299 273 58 917 (671) 58 544 9 970 (1 255) 16 379 441 157
Finance income – – – – – 17 296 – 17 296
Finance costs – – – – – (257 510) – (257 510)
Equity-accounted investment loss – – – – – (6 754) – (6 754)
Profit/loss before taxation 299 273 58 917 (671) 58 544 9 970 (248 223) 16 379 194 189
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 28 FEBRUARY 2019
BASIS OF PREPARATION
The unaudited condensed consolidated interim financial results ("the financial statements") have been prepared in accordance with and
containing the information required by IAS 34 Interim Financial Reporting in accordance with the Financial Reporting Pronouncements
as issued by the Financial Reporting Standards Council, the JSE Listings Requirements and in the manner required by the Companies
Act of South Africa (as amended).
The accounting policies and methods of computation applied in the preparation of the financial statements are in accordance with
IFRS and are consistent with those applied in the audited annual financial statements for the year ended 31 August 2018, except for
the effect of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers which were adopted during the current
financial period.
These financial statements were prepared under the supervision of Mr M Wagenheim CA (SA) in his capacity as group financial director.
These financial statements have not been audited or reviewed by the group's independent external auditors.
The directors are not aware of any matters or circumstances arising after 28 February 2019 that require any additional disclosure or
adjustment to the financial statements, other than as disclosed in the financial statements.
NEW STANDARDS AND INTERPRETATIONS
IFRS 9 Financial Instruments
Classification of financial assets
IFRS 9 Financial Instruments introduces a new principle-based classification for financial assets. Despite this new basis, there has not
been any significant reclassification of assets between amortised cost, fair value through profit or loss and fair value through other
comprehensive income upon the adoption of the standard. The group's business model for its financial assets (excluding derivative
financial assets) is to "hold and collect", and the group collects capital and interest only. The group applies hedge accounting to its
derivative financial assets consisting of interest rate swap agreements (refer below).
Impairment
The group was required to revise its impairment methodology under IFRS 9 Financial Instruments for its financial assets. The group's
significant financial assets consist of trade and other receivables and cash and cash equivalents. In terms of its revised methodology
the group applies the IFRS 9 Financial Instruments simplified approach to measuring expected credit losses, which uses a lifetime
expected loss allowance for all trade receivables. The group expects to provide additional disclosures in the annual report regarding the
calculation of the expected credit loss and the judgements that have been made as a result of the new standard. The earlier recognition
of credit losses under IFRS 9 Financial Instruments has not had a material impact on the group's financial position and results.
Hedging
IFRS 9 incorporates hedge accounting requirements that are more aligned with the risk management activities of the entity than under
the largely rule-based approach of IAS 39. While these changes have affected the group's effectiveness testing methodology, there has
been no material impact on its financial position or results. The group expects to provide additional disclosures in the annual report.
IFRS 15 Revenue from Contracts with Customers
IFRS 15 Revenue from Contracts with Customers has had no impact on the results of the group. To date the group's revenue consists of
rental income, which falls outside the scope of IFRS 15 Revenue from Contracts with Customers and within the scope of IFRS 16 Leases.
The group holds inventories, which consist of residential units currently in the process of construction. None of these units have been
sold during the period under review. IFRS 16 Leases is only effective for years beginning on or after 1 January 2019.
IFRS 16 Leases
IFRS 16 Leases introduces a single accounting model for lessees building on the principle that all leases result in the lessee being
entitled to use an asset and, if lease payments are made over time, obtaining financing.
The group does not expect the adoption of this standard to have a material impact on its financial position or results. Accounting by
lessors has been left largely unchanged in IFRS 16, and the group does not have material commitments to operating lease payments.
DIRECTORS' COMMENTARY
GENERAL REVIEW
Ingenuity continues to trade well despite a somewhat subdued economic environment and lacklustre property cycle. The business
continues to maintain its focus as a strategically-based geographic entity with its primary focus to grow its net asset value ("NAV")
through development and core investment opportunities.
The fair value of the property assets has increased by 8% over the comparative period. The total property portfolio value now amounts
to R4.05 billion (2018: R3.76 billion) comprising:
- 23 investment properties with a value of R3.25 billion;
- Two properties currently under development of R551 million, which comprise the 117 On Strand development at a total current cost
(including the residential component which is disclosed as inventory) of R485 million, and 20 Vineyard Road at a current cost of
R66 million; and
- Three land opportunities held for future development, comprising "The Modern", the 23 Lower Long Street and the Tyger Valley
projects with a combined value of R250 million. The 23 Lower Long Street property was reclassified from investment property to
development property in the reporting period on termination of the lease with the gym tenant and the purchase of the leasehold
portion of the property. The building will be demolished in anticipation of its pending redevelopment.
The company's R29 million investment in a joint venture together with the Rabie Property Group is to develop and market a mixed-use
scheme on a prime location central city block known as City Park, which is bound by Bree, Longmarket, Loop and Church Streets, in
Cape Town.
The construction of the 117 on Strand development is continuing well with a total anticipated capital cost for this project of approximately
R657 million. Completion is expected at the end of August 2019.
At the reporting date, the 20 Vineyard Road development had a budgeted total capital expenditure of R86.3 million with a yield on final
completion of 8%. This project achieved practical completion on 1 April 2019 within budget.
Transfer of the sale of development property, known as State House, for a selling price of R45 million was registered on 3 December
2019. Part of the proceeds on sale were utilised to reduce borrowings.
The net asset value per share (based on the number of shares in issue and net of total treasury shares) increased by 10% to 145 cents
from 132 cents in the comparative period.
OPERATIONS
Net property income, comprising gross rental income less property expenses, decreased to R119 million (2018: R157 million) due to
properties sold in the current and previous reporting periods. On a like-for-like property basis, excluding the properties sold, core net
property income has remained flat, due to vacancies in two properties (Amber Place and 14 Dreyer Street). The vacancies in Amber
Place have now been substantially reduced, whilst 14 Dreyer Street is being reconfigured to allow for alternative letting options. We
expect this space to be let before the end of the current financial year. Property expenses and other operating expenses are well
controlled and were within budget.
Headline earnings per share ("HEPS") is 2.5 cents (2018: 0.5 cents) and earnings per share ("EPS") is 5.6 cents (2018: 7.6 cents).
HEPS has increased mainly due to a decrease in net finance costs and the related tax effects thereof as a result of lower borrowings due
to the proceeds on the sales of properties being applied against borrowings.
EPS has decreased mainly due to the net increases in the property fair value adjustments being substantially lower than in the
comparative period as there are now fewer properties in the portfolio. The decrease is also attributable to higher capitalisation rates,
discount rates and lower rental assumptions applied to valuations for individual properties, due to lower market growth assumptions
prevailing in the industry.
NET PROPERTY EXPENSES
The ratio of property expenses to revenue has increased to 36% for the current period (2018: 32%) due to lower gross contractual
revenues from vacancies. Subsequent to the reporting period, some of these vacancies have been filled, which will result in a reduction
in this ratio.
FAIR VALUE ADJUSTMENTS
Valuations of all properties were performed either internally by the directors or externally by an independent external valuer, and have
resulted in a net upward revaluation adjustment of R49 million (2018: R113 million). Independent external valuations are carried out on
a rotational basis to ensure each property is valued independently at least every three years. Conservative valuation assumptions have
been applied to take account of weakening market conditions. The valuations are based on either the discounted cash flow method
or the capitalisation of net income method or a combination of these methods, which is consistent with the basis used in prior years.
The fair value measurement for investment property has been categorised as a level 3 fair value based on the inputs to the valuation
techniques used. Significant unobservable inputs used were as follows:
- A capitalisation rate, ranging between 7% and 9% (2018: 7% and 9%); and
- The discount rates applied range between 12.5% and 14% (2018: 12.25 and 14.5%).
INVESTMENT IN JOINT VENTURE
The joint venture investment in the City Park development has increased due to funding provided by the partners to service the
borrowings net of revenues earned. The equity-accounted investment loss of R5.6 million (2018: R4.3 million) comprises mainly interest
paid on the borrowings incurred in acquiring the property. Interest will be expensed until the redevelopment commences, whereafter it
will be capitalised to the cost of the redevelopment.
FINANCE CHARGES
Finance charges decreased to R80.8 million from R131.7 million in the comparative half year 2018, due to a substantial reduction
in borrowings from applying the proceeds on the sales of properties against borrowings. The weighted average rate of interest on
borrowings as at 28 February 2019 was 10.1% compared to 9.7% for the comparative half year 2018. The higher rate is due to the
increased extent of borrowings that are hedged.
ARREARS
No bad debts have been written off during the current reporting period and there are no concerns regarding the recoverability of any
debtors as at the reporting date. The company maintains a good track record of very low write-offs and a debtors' book which is
collected within 30 days.
VACANCY LEVELS
At the reporting date, the group's core portfolio vacancy ratio was 5.3% on a portfolio GLA of 151 754 m2. For the 2018 comparative
figures, the vacancy ratio was 3.9% on a portfolio GLA of 193 452 m2. This increase is mainly due to the vacancy in 14 Dreyer Street,
which comprises 2.2%. The 14 Dreyer Street property is a purpose-built property with a long lease, which was not renewed on its expiry.
This property is currently being reconfigured for general retail and office use. The core operating vacancy is still well below current
market norms and is attributable to pro-active management and the quality of the asset base, which continues to attract high quality
tenants. At the reporting date, the weighted average lease expiry ("WALE") profile per income was a strong 4.1 years (2018: 4.5 years)
whilst the lease expiry profile of the portfolio per GLA was 61% (2018: 54%) of rentals expiring beyond February 2021.
DERIVATIVE ASSETS AND LIABILITIES
These comprise interest-rate swap contracts, which qualify for special hedge accounting. The company has classified them as cash
flow hedges stated at fair value based on broker quotes. The profile comprises five-year interest rate swaps with notional amounts
totalling R2 billion, at an average all-in cost of 10% (2018: 9.8%), maturing as follows:
- R500 million in November 2020;
- R500 million in May 2021;
- R500 million in July 2021; and
- R500 million in August 2022.
These contracts are considered to be level 2 financial assets and liabilities and are measured using a discounted cash flow valuation
technique, which utilises risk-free interest rate inputs, observable for the liability either directly (as prices) or indirectly (derived from
prices). The values of these derivative liabilities have increased (and the value of the assets decreased) since 31 August 2018 due to
decreases in the long-bond interest rates.
STATED CAPITAL
The company did not issue any shares during the reporting period under review.
The group repurchased 67.6 million (2018: 0.226 million) of its own shares during the period under review at an average cost of 108
(2018: 91) cents per share. The company delisted and cancelled 62.1 million of these shares in February 2019, and the balance of
5.5 million are held in a subsidiary as treasury shares. At the reporting date, the company held 95 560 072 (2018: 62 386 364) treasury
shares at an average cost of 67 (2018: 54) cents per share. When opportune, the company will continue to enter into further buybacks.
BORROWINGS
At the reporting date, total borrowings amounted to R2.18 billion (2018: R2.83 billion) with a loan-to-value ratio of 53% (2018: 59%),
which is the measure of dividing interest-bearing debt net of cash holdings by the fair value of all property assets. The positive reduction
in this ratio is as a result of applying the proceeds on the sales of properties to reduce borrowings.
Borrowings of 91% (2018: 71%) are fixed with the balance at floating rates. The all-in weighted average interest rate, inclusive of the
interest rate swaps, amounts to 10.09% as at 28 February 2019 (2018: 9.7%).
COMMITMENTS
Development and capital expenditure, not yet incurred but authorised and contracted for, amounts to R204 million as at the end of the
reporting period. It comprises R184 million for the 117 on Strand development, which is scheduled for completion end August 2019, and
R20 million for the 20 Vineyard Road development scheduled for completion in April 2019.
These projects are being funded by a combination of debt and existing cash resources.
PROSPECTS
Ingenuity has during the past reporting period maintained a conservative strategy and kept its focus on the construction and pending
completion of two developments, i.e. 117 on Strand, Cape Town and 20 Vineyard Road, Claremont. Both properties are due for
completion during the next six months. The combined capital cost of these two schemes is approximately R750 million. R300 million of the cost
will be recovered once the residential units in 117 on Strand have been transferred. We have not sought any additional investments
but continue to rather focus on unlocking value of our development opportunities and realising value from mature assets.
Despite prevailing uncertainty, we continue to strengthen the quality of the portfolio and the underlying income stream. Active
refurbishment and upgrade of the existing buildings continue, ensuring that quality and tenant retention is maintained.
Our commitment is to create enduring increased wealth for shareholders focusing on underlying quality assets with a strong focus on
growing net asset value.
The above information has not been reviewed or reported on by the company's auditors.
SUBSEQUENT EVENTS
The company announced on SENS on 17 April 2019 that it intends proposing for shareholder approval, a specific repurchase of
356 062 509 Ingenuity ordinary shares, representing 29.8% of shares currently in issue, from three identified shareholders at a price of
108 cents per share, subject to the provisions of the company's memorandum of incorporation, the Companies Act and its regulations
and the JSE Listings Requirements, as applicable. Subsequent to the repurchase, application will be made to the JSE for the delisting
and cancellation of these shares. A circular setting out full details of the repurchase and giving notice convening a general meeting will
be sent to shareholders shortly.
Other than as reported above, there are no other material subsequent events which have occurred between the end of this interim period
being reported on and the date of this report.
On behalf of the Board
AA MARESKY R SQUIRE-HOWE M WAGENHEIM
Chief Executive Officer Chairman Chief Financial Officer and Company Secretary
30 April 2019
Cape Town
INGENUITY PROPERTY INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 2000/018084/06
JSE share code: ING
ISIN code: ZAE000127411
("Ingenuity" or "the company" or "the group")
DIRECTORS:
RC Squire-Howe*# (Chairman), AA Maresky (CEO), M Wagenheim (Financial Director)
J Bielich, AJ Branch*# (British), LH Cohen*, DB Fabian*#, SR Leon*#, RS Schur*#
*Non-executive #Independent
REGISTERED OFFICE AND POSTAL ADDRESS:
Suite 102, Intaba, 25 Protea Road, Claremont, 7708, Cape Town, South Africa
COMPANY SECRETARY:
M Wagenheim
CONTACT DETAILS:
Tel: 021 674 5130
Fax: 021 674 5135
Email: info@ingenuityproperty.com
www.ingenuityproperty.com
TRANSFER SECRETARIES:
Computershare Investor Services Proprietary Limited,
Rosebank Towers, 15 Bierman Avenue, Rosebank, 2196
PO Box 61051, Marshalltown, 2107
Tel: 011 370 5000
SPONSOR:
Nedbank Corporate and Investment Banking
AUDITORS:
Mazars
BANKERS:
Absa Bank Limited and The Standard Bank of South Africa Limited
ingenuityproperty.com
Date: 30/04/2019 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
