Wrap Text
Reviewed provisional condensed consolidated results for the year ended 28 February 2019
Delta Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
Share code: DLT ISIN: ZAE000194049
("Delta" or "the Fund" or "the Group")
(REIT status approved)
Reviewed provisional condensed consolidated results for the year ended 28 February 2019
Company profile
Delta is a JSE listed Real Estate Investment Trust ("REIT") with a property portfolio of R11.4 billion as
at 28 February 2019. The Fund is black managed and is one of the most empowered funds in the sector with a
level 2 B-BBEE rating, maintaining its status as the dominant sovereign listed property fund in South Africa.
The primary focus of the Fund is long-term investment in quality, rental income-generating properties
situated in strategic nodes attractive to sovereign entities and other tenants requiring empowered
landlords.
Performance
- Full year distributable earnings of 73.84 cents per share
- Distribution of 55.39 cents per share declared for the year
- Capital expenditure of R115 million to attract and retain tenants
- Extended R2.1 billion in expiring debt facilities
- Renewed and concluded 151 018m2 expiring leases
- Concluded 12 537m2 new leases
Commentary
Financial results
Delta achieved full year distributable earnings of 73.84 cents per share (2018: 97.24 cents per share) in line
with its revised guidance to the market. The Board has decided to retain 25% of distributable earnings to
facilitate capital expenditure and working capital requirements in the business, resulting in a full year
distribution of 55.39 cents per share (2018: 97.24 cents per share) being declared.
Net property income decreased by 9.7%, largely affected by provisions raised during the year which had a direct
bearing on the gross cost to income ratio and net cost to income ratio increasing to 32.2% and 18.3% respectively.
Net property income grew 1.8% on a like-for-like basis and declined 3.2% including the effect of the provisions.
Administrative expenses for the period increased by 49.5%, largely as a result of the reclassification of asset
management fees from property operating expenses. On a normalised basis administrative expenses increased by 5.5%.
Fair value adjustment was negatively impacted by property valuations which decreased by R227 million and was affected
by the slow pace of lease renewals by the Department of Public Works. Our investment in Grit Real Estate Income Group
Limited ("Grit") increased by R80 million post its listing on the London Stock Exchange.
Finance costs increased by 11.4% due to new debt facilities, higher interest rates and debt structuring fees incurred
on extended debt facilities. Interest income increased by 32.2% primarily due to interest levied on arrear trade
receivables.
Dividend income from Grit increased by 9.9% benefiting from the foreign currency conversion due to the weakening of
the rand, while other income decreased by 68.7% due to once-off reinstatement charges to the Department of Statistics
in the prior year.
Property portfolio
Delta's property portfolio is valued at R11.4 billion and consists of 104 properties with a total gross lettable area
("GLA") of 950 442m2, including assets held-for-sale comprising 20 properties with a total GLA of 147 188m2 and a
combined value of R1.4 billion.
An additional 10 buildings, comprising the Bloemfontein provincial portfolio with a total GLA of 59 427m2 and a book
value of R483.4 million, have been added to the existing non-current assets held-for-sale. Management has constantly
been receiving unsolicited offers on the assets from potential buyers and have considered disposing some of the
properties due to the increasing vacancies and competition in the node. The provincial government of the Free State
province has been actively supporting the empowerment of their local B-BBEE property companies which has proven a
barrier for management to renew expired leases.
Acquisitions and disposals
Delta did not conclude any acquisitions during the current year. Significant effort was focused on renewing leases.
Aligned with our sovereign and diversification strategy, we did, however, explore opportunities within the Southern
African Development Community ("SADC") and will update the market upon further progression of these opportunities.
In terms of disposals, the sale of 12 New Street was concluded during the year for R15.8 million and Top Trailers
site 1 transferred, post-year-end, for R45 million. Disposal proceeds were utilised to settle debt and support
capital expenditure. The transfer of Block G, Broadcast House and Protea Coin Cape Town, totalling a GLA of
18 625m2 and with a fair value of R273 million, is expected to be concluded within the new financial year.
Major capital projects
Capital investment remains a high priority to ensure quality assets that meet the tenants' requirements.
The following major capital projects were either recently completed, are in progress or are close to completion:
- Embassy Building (Durban) - completed at a total cost of R28 million.
- Beacon Hill (King Williams Town) - investment of R40 million due to the conclusion of a five-year lease.
- Commission House (Pretoria) - completed at a total cost of R16 million.
- Poyntons Fire Project - fire compliance project of R32.5 million expected to be to be completed by June 2019.
- 17 Harrison Street - completed at a total cost of R4.5 million.
With the conclusion of the bulk lease renewals, further major capital projects on tenant installations and other
building upgrades will be initiated in the new financial year.
Letting and vacancies
The lease expiry profile of the portfolio at 28 February 2019 was as follows:
Month- Beyond
to- 29 February 28 February 28 February 28 February 29 February 29 February
Segment Vacant month 2020 2021 2022 2023 2024 2024
Office
- government 10.9% 40.4% 15.1% 18.5% 8.0% 2.4% 3.9% 0.9%
Office
- other 24.3% 15.4% 20.9% 20.4% 10.9% 3.5% 0.6% 4.0%
Retail 5.7% 11.2% 14.2% 3.6% 8.5% 0.0% 1.5% 55.2%
Industrial 33.1% 27.8% 0.0% 39.1% 0.0% 0.0% 0.0% 0.0%
Vacancies increased to 14.4% (GLA of 136 986m2). The weighted average rental achieved was R119.3/m2 across the portfolio.
During the year under review, 50 leases representing 46 833m2 were renewed at an average rental of R107.9/m2.
Totalling 12 537m2, 63 new leases were concluded at average rentals of R102.8/m2.
Vacancies in our dominant nodes of Pretoria CBD and Durban CBD are 8.5% (SAPOA 4.3%) and 16.9% (SAPOA 21.6%)
respectively. The vacancy in the Durban CBD is lower than the SAPOA last quarter average for "B" grade office space.
Delta has seen an improvement in the renewal of leases by National Department of Public Works ("DPW") and the process
is gaining momentum. We have signed 37 leases totalling 88 185m2 from the bulk renewal of 227 550m2 to date and have
agreed on rentals and tenure on the remaining 139 365m2 with DPW and the user departments. We anticipate concluding
further lease renewals between June and July of this year.
Funding
Loan to value ("LTV") increased to 45.1% (2018: 41.3%), impacted by the negative fair value adjustment of investment
properties and increased borrowings of R424.9 million. The conclusion of long-term leases and corresponding capital
expenditure on the portfolio should increase the fair value of investment property thereby reducing LTV in the short to
medium term.
Despite the challenging operating environment during the period, we successfully managed to extend expiring facilities
of R2.1 billion and concluded new facilities of R0.2 billion. The weighted average cost of funding increased to 10.2%
(2018: 9.2%) with the interest cover ratio at 2.1 (2018: 2.4). The average debt facility expiry period and average
fixed debt ratio decreased to 0.8 years (2018: 1.5 years) and 59.8% (2018: 85.4%) respectively, impacted by the passage
of time and short-term refinance of facilities.
Management intends to diversify its funding sources and negotiate pricing at more competitive rates, term out the debt
facility expiry, increase the debt fix ratio and reduce LTV during the year post the conclusion of the bulk lease
renewals.
Provision of financial assistance
Delta shareholders are referred to special resolution number 4 relating to the provision of direct or indirect
financial assistance in terms of section 45 of the Companies Act, No 71 of 2008 ("the Companies Act") to related
or inter-related companies, which was approved at the Annual General Meeting of Delta on 21 September 2017.
Further to the above, Delta shareholders are notified in terms of section 45(5)(a) of the Companies Act, that the
Board of directors of the Company ("the Board") passed a resolution on 31 May 2019 ("the Board resolution") granting
financial assistance to the following related companies:
- Somnipoint Proprietary Limited - R23.7 million in respect of a loan to a company with common directors.
- Delta Property Asset Management Proprietary Limited - R18.6 million in respect of a loan to a company with
common directors.
- Hestitrix Proprietary Limited - R248.5 million in the ordinary course of business.
- K2014000273 Proprietary Limited - R157.6 million in the ordinary course of business.
- 277 Vermeulen Street Properties Proprietary Limited - R32.9 million in the ordinary course of business.
- Hendisa Investments Proprietary Limited - R33 614 in the ordinary course of business.
The financial assistance provided, as detailed above, is greater than one-tenth of 1% of Delta's net worth as
at the date of the Board resolution. The Board further confirms that immediately after providing the financial
assistance, the Company continues to satisfy the solvency and liquidity test as contemplated in section 4 of
the Companies Act and that the terms and conditions of the financial assistance are fair and reasonable to
the Company.
Changes to directorate during the period
There have been no changes to the directorate during the period, however, Marelise de Lange was appointed as an
independent non-executive director to the Delta Board post the reporting date. Marelise is also a member of
the Audit, Risk and Compliance Committee and the Investment Committee of Delta.
Prospects
The conclusion of South Africa's sixth democratic election is expected to provide much needed political stability
and improved business confidence within the economy. We expect this transition to materialise within the next
twelve months, whereby we envisage positive capital inflow and further stability to interest rates.
The conclusion of the bulk lease renewal and longer-term refinancing of debt at market-related rates remain critical
priorities at this stage. The current short-term refinance of debt due to the low weighted average lease expiry
has resulted in higher finance costs thereby diluting earnings. Capital expenditure and reducing vacancies remain
a further strategic consideration, which is expected to benefit from a more aggressive disposal strategy of
non-core assets. We have increased focus on marketing and broker discussions in an effort to conclude disposals,
which is expected to also benefit the LTV.
While ongoing lease renewals provide much needed stability and certainty of income over a longer tenure, it does
translate into short-term sacrifice in the form of negative reversions. The Board anticipates earnings to decrease
by between 8% and 10% for the 2020 financial year. The Group's independent auditors have neither reviewed nor reported
on this forecast.
Delta's Board and management remain committed to its sovereign strategy and intend to reduce its concentration
risk within South Africa by responsibly exploring feasible and accretive opportunities in SADC.
Declaration of final dividend ("the cash dividend")
Shareholders are advised that dividend number 13 of 15.98900 cents per share for the year ended 28 February 2019 has
been declared. The source of the cash dividend is from distributable income.
Salient dates of the cash dividend:
2019
Declaration date of cash dividend Friday, 31 May
Last day to trade in order to be eligible for the cash dividend Tuesday, 18 June
Delta shares commence trading ex cash dividend Wednesday, 19 June
Record date of cash dividend Friday, 21 June
Cheques posted to certificated shareholders and accounts credited
by CSDP or broker to dematerialised shareholders on Monday, 24 June
Notes:
1. Delta shares may not be dematerialised or rematerialised between commencement of trade on Wednesday, 19 June 2019
and the close of trade on Friday, 21 June 2019, both dates included.
Tax implications
In accordance with Delta's REIT status, shareholders are advised that the cash dividend meets the requirements of a
"qualifying distribution" for the purposes of section 25BB of the Income Tax Act, No 58 of 1962 ("Income Tax Act").
An announcement informing shareholders of the tax treatment of the distributions will be released separately
on SENS.
Basis of preparation and accounting policies
The condensed consolidated financial statements have been prepared in accordance with the International Financial
Reporting Standards ("IFRS"), IAS 34 Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council,
the JSE Listings Requirements and the requirements of the Companies Act of South Africa. The accounting policies applied
in the preparation of these provisional results are in terms of IFRS and are consistent with those applied in the
previous annual financial statements.
The condensed consolidated financial statements have been prepared under the supervision of the Chief Financial
Officer, Mr Shaneel Maharaj CA(SA)/HDipTax, and have been reviewed by BDO South Africa Incorporated, who expressed
an unmodified review conclusion.
A copy of the auditor's review report is available for inspection at the Company's registered office together with
the financial statements identified in the auditor's report. The auditor's report does not necessarily cover all the
information contained in this announcement. Shareholders are therefore advised that in order to obtain a full
understanding of the nature of the auditor's work they should obtain a copy of that report together with the
accompanying financial information from the registered office of the Company.
The directors take full responsibility for the preparation of the provisional report and the financial information
has been correctly extracted from the underlying financial statements. Delta has complied with IFRS and JSE Listings
Requirements by disclosing earnings and headline earnings per share. Distribution per share has been disclosed
additionally.
By order of the Board
JB Magwaza SH Nomvete
(Chairman) (Chief Executive Officer)
31 May 2019
Condensed consolidated statement of financial position
as at 28 February 2019
Group Company
R'000 2019 2018 2019 2018
Assets
Non-current assets
Investment property 9 913 811 10 535 000 9 664 809 10 268 200
Fair value of investment property 9 755 209 10 342 418 9 506 715 10 076 207
Straight-line rental income accrual 158 602 192 582 158 094 191 993
Property, plant and equipment 1 714 2 557 1 714 2 557
Investment in subsidiaries - - 62 273 62 273
Investment in associate - 381 868 - 381 868
Investment in Grit 461 822 - 461 822 -
Loans due from subsidiaries - - 439 038 423 268
10 377 347 10 919 425 10 629 656 11 138 166
Current assets
Loans due from related parties 43 511 55 243 43 511 55 243
Loan receivable 20 906 48 465 20 906 48 465
Current tax receivable - 526 - -
Trade and other receivables 357 973 338 845 334 393 302 985
Cash and cash equivalents 25 339 100 177 26 870 96 864
447 729 543 256 425 680 503 557
Non-current assets held-for-sale 1 436 520 972 600 1 206 520 744 600
Total assets 12 261 596 12 435 281 12 261 856 12 386 323
Equity
Share capital 4 868 461 4 854 032 4 868 461 4 854 032
Reserves - 144 230 - 139 425
Retained income 1 772 984 2 160 330 1 746 477 2 117 907
Total equity 6 641 445 7 158 592 6 614 938 7 111 364
Liabilities
Non-current liabilities
Derivative financial instruments 22 478 31 475 22 478 31 475
Interest-bearing borrowings 1 448 218 2 688 755 1 448 218 2 688 755
Loans due to subsidiaries - - 4 190 4 190
1 470 696 2 720 230 1 474 886 2 724 420
Current liabilities
Interest-bearing borrowings 3 810 253 2 263 935 3 810 253 2 263 935
Trade and other payables 172 003 183 983 161 391 177 453
Derivative financial instruments 28 625 11 426 28 623 11 426
Current tax payable 12 821 - 13 347 -
Bank overdraft 125 753 97 115 158 418 97 725
4 149 455 2 556 459 4 172 032 2 550 539
Total liabilities 5 620 151 5 276 689 5 646 918 5 274 959
Total equity and liabilities 12 261 596 12 435 281 12 261 856 12 386 323
Condensed consolidated statement of profit or loss and other comprehensive income
for the year ended 28 February 2019
Group Company
R'000 2019 2018 2019 2018
Revenue
Rental income 1 581 669 1 562 033 1 522 713 1 505 471
Straight-line rental income accrual (34 304) 2 020 (32 970) 1 134
1 547 365 1 564 053 1 489 743 1 506 605
Property operating expenses (509 579) (414 168) (496 835) (406 068)
Net property rental and related income 1 037 786 1 149 885 992 908 1 100 537
Other income 6 356 20 287 6 356 20 278
Foreign currency translation reserve
recognised on derecognition of associate 4 805 - - -
Dividend income 21 769 - 36 660 50 812
(Loss)/gain on foreign exchange movements (28 103) 16 881 (28 103) 16 881
Administration expenses (79 727) (53 329) (76 361) (52 838)
Net operating profit 962 886 1 133 724 931 460 1 135 670
Fair value adjustments (168 152) 104 759 (151 437) 99 975
Profit from operations 794 734 1 238 483 780 023 1 235 645
Finance costs (537 281) (482 179) (537 354) (482 624)
Interest income 26 032 19 696 56 732 50 497
Share of profit in associate - 43 970 - -
Impairment of investment in associate - (21 900) - (47 719)
Profit before taxation 283 485 798 070 299 401 755 799
Taxation (27 692) - (27 692) -
Profit for the year 255 793 798 070 271 709 755 799
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Share of foreign currency translation
reserve of associate - 4 451 - -
Total comprehensive income for the year 255 793 802 521 271 709 755 799
Profit for the year attributable to:
Owners of the parent 255 793 798 070 271 709 755 799
Total comprehensive income attributable to:
Owners of the parent 255 793 802 521 271 709 755 799
Basic and diluted earnings per share (cents) 39.80 112.26 - -
Condensed consolidated statement of cash flows
for the year ended 28 February 2019
Group Company
R'000 2019 2018 2019 2018
Cash generated from operations 905 500 1 132 324 846 033 1 100 863
Interest received 24 544 12 158 55 244 42 504
Dividend received 38 849 18 587 53 741 33 733
Finance costs (486 027) (475 899) (486 027) (475 899)
Taxation (paid)/refund (14 345) 627 (14 345) -
Net cash from operating activities 468 521 687 797 454 646 701 201
Acquisition of property, plant and equipment (164) (498) (164) (498)
Capital expenditure on investment property
and assets held-for-sale (114 975) (185 436) (112 540) (182 905)
Proceeds on disposal of assets held-for-sale 15 750 205 200 15 750 205 200
Gross movement in loans with related parties 17 216 26 223 17 216 26 223
Decrease/(increase) in loan receivable 33 034 (48 465) 33 034 (48 465)
Loans advanced to subsidiaries - (15 771) (18 115)
Net cash from investing activities (49 139) (2 976) (62 475) (18 560)
Distribution reinvestment 14 429 8 784 14 429 8 784
Dividends paid (643 139) (694 329) (643 139) (694 329)
Deferred consideration settled in cash (140 000) - (140 000) -
Increase in interest-bearing borrowings 424 967 220 358 424 967 220 358
Repayment of interest-bearing borrowings (179 115) (360 385) (179 115) (360 385)
Repayment of other financial liabilities - (9 025) - (9 025)
Net cash from financing activities (522 858) (834 597) (522 858) (834 597)
Net movement in cash and cash equivalents (103 476) (149 776) (130 687) (151 956)
Cash at the beginning of the year 3 062 152 838 (861) 151 095
Total cash at the end of the year (100 414) 3 062 (131 548) (861)
Condensed consolidated statement of changes in equity
for the year ended 28 February 2019
Foreign
currency
translation
Share reserve Deferred Total Retained Total
R'000 capital ("FCTR") consideration reserves income equity
Group
Balance at 1 March 2017 4 845 248 354 139 425 139 779 2 056 589 7 041 616
Total comprehensive
income for the year - 4 451 - 4 451 798 070 802 521
Profit for the year - - - - 798 070 798 070
Other comprehensive income - 4 451 - 4 451 - 4 451
Deferred consideration raised 8 784 - - - - 8 784
Distributions paid - - - - (694 329) (694 329)
Balance at 1 March 2018 4 854 032 4 805 139 425 144 230 2 160 330 7 158 592
Total comprehensive
income for the year - - - - 255 793 255 793
Profit for the year - - - - 255 793 255 793
Other comprehensive income - - - - -
Deferred consideration
settled in cash - - (139 425) (139 425) - (139 425)
FCTR recognised
in profit or loss - (4 805) - (4 805) - (4 805)
Distribution reinvestment 14 590 - - - - 14 590
Share issue expenses (161) - - - - (161)
Distributions paid - - - - (643 139) (643 139)
Balance at 28 February 2019 4 868 461 - - - 1 772 984 6 641 445
Foreign
currency
translation
Share reserve Deferred Total Retained Total
R'000 capital ("FCTR") consideration reserves income equity
Company
Balance at 1 March 2017 4 845 248 - 139 425 139 425 2 056 438 7 041 111
Total comprehensive
income for the year - - - - 755 799 755 799
Profit for the year - - - - 755 799 755 799
Other comprehensive income - - - - - -
Deferred consideration raised 8 784 - - - - 8 784
Distributions paid - - - - (694 329) (694 329)
Balance at 1 March 2018 4 854 032 - 139 425 139 425 2 117 907 7 111 364
Total comprehensive
income for the year - - - - 271 709 271 709
Profit for the year - - - - 271 709 271 709
Other comprehensive income - - - - - -
Deferred consideration
settled in cash - - (139 425) (139 425) - (139 425)
Distribution reinvestment 14 590 - - - - 14 590
Share issue expenses (161) - - - - (161)
Distributions paid - - - - (643 139) (643 139)
Balance at 28 February 2019 4 868 461 - - - 1 746 477 6 614 938
Reconciliation of earnings, headline earnings and distributable earnings
Group
R'000 2019 2018
Earnings, headline earnings and distributable earnings
Profit before taxation 283 485 798 070
Investment property 237 599 (148 562)
Fair value adjustment to investment property 237 599 (146 611)
Fair value adjustment to associate's investment property - (1 951)
Headline earnings 521 084 649 508
Derivative financial instruments (net of deferred taxation) 10 507 290
Fair value adjustment to derivative financial instrument 10 547 290
Deferred taxation - -
Investment in joint venture (net of deferred taxation) - 41 562
Fair value adjustment to investment in joint venture - 41 562
Deferred taxation - -
Investment in Grit (net of deferred taxation) (79 954) 41 562
Fair value adjustment to investment in Grit (79 954) 41 562
Deferred taxation - -
Straight-line rental income accrual (net of deferred taxation) 34 304 (2 020)
Straight-line rental income accrual 34 304 (2 020)
Deferred taxation - -
Foreign currency translation reserve recognised on derecognition of associate (4 805) -
Dividend income from Grit 17 418 35 666
Loss/(gain) on foreign exchange differences 28 103 (16 881)
Share of profit in associate - (43 970)
Change in fair value of associate's investment properties - 1 951
Impairment of investment in associate - 21 900
Antecedent distribution 569 257
Prior year retained earnings distributed - 3 378
Distributable earnings attributable to owners of the parent 527 226 691 641
Less: Distribution declared 395 419 691 641
Interim 281 222 329 724
Final (declared after 28 February 2019) 114 197 361 917
Distributable earnings retained 131 807 -
Shares in issue at the beginning of the year 711 844 486 710 632 182
Distribution reinvestment 2 385 232 1 212 304
Number of shares in issue 714 229 718 711 844 486
Weighted average number of shares in issue at the beginning of the year 710 927 785 710 632 182
Distribution reinvestment 1 366 459 295 603
Weighted average number of shares in issue 712 294 244 710 927 785
Actual number of shares in issue
Number of shares in issue at interim 713 793 466 710 632 182
Number of shares in issue at year-end 714 229 718 711 844 486
Basic and diluted earnings and headline earnings per share (cents)
Basic and diluted earnings per share 39.80 112.26
Basic and diluted headline earnings per share 73.16 91.36
Distribution per share (cents)
Interim 39.40 46.40
Final (declared after 28 February 2019) 15.99 50.84
Distribution per share declared for the full year 55.39 97.24
The Group has no dilutionary instruments in issue.
Condensed consolidated segmental analysis
Administration
and corporate Office Office
R'000 costs Industrial government other Retail Total
Group 2019
Contractual rental income - 27 968 1 161 461 354 027 38 213 1 581 669
Straight-line rental income accrual - (211) (36 635) (33) 2 575 (34 304)
Property operating expenses - (8 434) (310 288) (175 287) (15 570) (509 579)
Net property rental and
related income - 19 323 814 538 178 707 25 218 1 037 786
Other income 5 053 28 847 253 175 6 356
FCTR recognised in profit or loss 4 805 - - - - 4 805
Dividend income 21 769 - - - - 21 769
(Loss)/gain on foreign
exchange movements (28 103) - - - - (28 103)
Administration expenses
(excluding depreciation) (67 576) (63) (8 614) (1 591) (915) (78 759)
Depreciation (968) - - - - (968)
Net operating profit/(loss) (65 020) 19 288 806 771 177 369 24 478 962 886
Fair value adjustment to
investment properties (10 599) 11 665 (167 745) (57 762) (13 158) (237 599)
Fair value adjustment to
investment in Grit 79 954 - - - - 79 954
Fair value adjustment to derivative
financial instruments (10 507) - - - - (10 507)
Profit/(loss) from operations (6 171) 30 953 639 026 119 607 11 320 794 735
Finance costs (542 356) (1) 3 782 1 328 (34) (537 281)
Interest income 12 510 2 10 950 2 490 80 26 032
Profit/(loss) before taxation (536 017) 30 954 653 758 123 425 11 366 283 486
Taxation (27 692) - - - - (27 692)
Profit for the year (563 709) 30 954 653 758 123 425 11 366 255 794
Reportable segment assets
and liabilities -
Assets -
Fair value of investment property - - 6 863 695 2 586 017 305 497 9 755 209
Straight-line rental income accrual - (0) 121 616 22 983 14 003 158 602
Non-current assets held-for-sale - 198 400 1 078 120 160 000 - 1 436 520
Other assets 596 827 3 335 235 372 46 109 29 621 911 264
596 827 201 735 8 298 803 2 815 109 349 121 12 261 595
Liabilities -
Total liabilities (320 268) 85 247 3 985 492 1 705 114 164 566 5 620 151
Administration
and corporate Office Office
R'000 costs Industrial government other Retail Total
Group 2018
Contractual rental income - 26 303 1 138 261 358 925 38 544 1 562 033
Straight-line rental income accrual - (1 228) (4 463) 3 620 4 091 2 020
Property operating expenses - (6 677) (254 560) (139 131) (13 800) (414 168)
Net property rental and related income - 18 398 879 238 223 414 28 835 1 149 885
Other income 1 360 127 14 488 4 201 111 20 287
Gain on foreign exchange differences 16 881 - - - - 16 881
Administration expenses
(excluding depreciation) (52 113) - - - - (52 113)
Depreciation (1 216) - - - - (1 216)
Net operating profit/(loss) (35 088) 18 525 893 726 227 615 28 946 1 133 724
Fair value adjustment to
investment properties (117 915) (30 379) 346 503 (87 379) 35 781 146 611
Fair value adjustment to investment
in joint venture disposed (41 562) - - - - (41 562)
Fair value adjustment to derivative
financial instruments (290) - - - - (290)
Profit/(loss) from operations (194 855) (11 854) 1 240 229 140 236 64 727 1 238 483
Finance costs (482 179) - - - - (482 179)
Interest income 19 696 - - - - 19 696
Share of profit in associate 43 970 - - - - 43 970
Impairment of investment in associate (21 900) - - - - (21 900)
Profit/(loss) before taxation (635 268) (11 854) 1 240 229 140 236 64 727 798 070
Taxation - - - - - -
Profit for the year (635 268) (11 854) 1 240 229 140 236 64 727 798 070
Reportable segment assets and liabilities
Assets
Fair value of investment property - - 7 431 687 2 592 159 318 572 10 342 418
Straight-line rental income accrual - - 158 613 22 541 11 428 192 582
Non- current assets held-for-sale - 186 800 593 400 192 400 - 972 600
Other assets 598 926 3 856 174 895 119 752 30 252 927 681
598 926 190 656 8 358 595 2 926 852 360 252 12 435 281
Liabilities
Total liabilities (1 659 486) 105 236 4 696 358 1 947 170 187 411 5 276 689
The segmental report has been populated based on a per building classification which is in accordance with the
majority tenant.
Corporate information
Directors
JB Magwaza^ (Chairman), SH Nomvete* (CEO), S Maharaj* (CFO), ON Tshabalala* (COO),
N Khan~, DN Motau^, ID Macleod^, MJN Njeke^#, NN Afolayan^, MCR Rampheri^, M de Lange^
*Executive, ^Independent non-executive, ~Non-executive, #Lead independent director
Registered office
Silver Stream Office Park, 10 Muswell Road South, Bryanston
(Postnet Suite 210, Private Bag X21, Bryanston, 2021)
Transfer secretaries
Computershare Investor Services Proprietary Limited
Sponsor
Nedbank Corporate and Investment Banking
www.deltafund.co.za
Date: 03/06/2019 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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