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Provisional summarised consolidated annual financial results for the year ended 31 March 2019
Stor-Age Property REIT Limited
Reg No. 2015/168454/06
Approved as a REIT by the JSE
Share Code: SSS ISIN: ZAE000208963
("Stor-Age" or "the company")
Provisional summarised consolidated annual financial results for the year ended 31 March 2019
INCLUDED IN THIS ANNOUNCEMENT IS A DECLARATION OF A CASH DIVIDEND
COMMENTARY
The board of directors ("the board") of Stor-Age is pleased to present the provisional summarised consolidated annual results of the company
and its subsidiaries ("the group") for the year ended 31 March 2019.
HIGHLIGHTS
- Total dividend up 9.05% to 106.68 cents
- Total portfolio GLA up 107 900m2 to 423 700m2 - 83.5% occupied
- Rental income and net property income up 63.2% and 65.2%, respectively
- SA rental income and net property income up 7.5% and 7.3%, on a like-for-like basis, respectively
- SA closing rental rate up 9.3%
- UK net operating income up 6.3% on a like-for-like basis
- Investment property value up 56% to R6.0 billion
- Acquisition of the Managed Portfolio and three trading properties (one SA; two UK)
- Completion of Bryanston development - strong seven-month trading results to March 2019
- Secured additional three properties in SA for future development with c. 20 000m2 + GLA
- Raised over R1.0 billion in new equity
- Gearing at year end of 24.6% - fully hedged on a net debt basis
- Favourably restructured SA and UK debt facilities
INTRODUCTION
Stor-Age has delivered another successful year, driven by both strong organic growth in the SA and UK portfolios and the seamless integration
of acquisitions. Since listing in November 2015, Stor-Age has continued to effectively execute its strategy. Our market capitalisation has
increased to R5.4 billion (2015: R1.4 billion) and the value of our portfolio has grown to over R6.0 billion (2015: R1.3 billion). In
March 2019 Stor-Age was included in a number of JSE indices including the All Share, All Property and SA REIT indices.
The final dividend for the year of 55.38 cents per share is up 9.0% on the prior year and, when added to the interim dividend of 51.30 cents
per share, brings the total dividend to 106.68 cents per share, a 9.05% year-on-year increase.
The group's strong trading performance was achieved in the face of a severely constrained SA economy with low GDP growth, and the continued
economic uncertainty in the UK as a result of its protracted withdrawal from the EU. This is testament to the resilient nature of our
underlying product as well as our specialist sector focus and expertise, the latter a critical success factor.
Our strong balance sheet, reinforced by the debt restructuring and oversubscribed equity raises, continues to provide the flexibility to
target select development and acquisition opportunities as they arise. In the year, in addition to completing the Bryanston development, we
also successfully closed four acquisitions - the Managed Portfolio and three new trading properties - adding significant scale and value to
the portfolio. An additional three properties were acquired in SA for future development. All three are in prime sought-after locations and
together will offer an additional c. 20 000m2 + GLA once developed.
Self storage remains a needs-driven product and an asset class with highly defensive characteristics. The flexibility of the product makes
Stor-Age's business case cyclically resilient. We have prioritised enhancing the operating platform with a focus on improving enquiry
generation, particularly in the digital space, and the conversion of enquiries into move-ins, and have achieved scale and efficiencies on the
platform across both regions.
SA - South Africa
m2 - square metres
UK - United Kingdom
sqf - square foot
Managed Portfolio - a portfolio of 12 properties previously managed and operated by Stor-Age
EU - European Union
CPC - Certificate of Practical Completion
GLA - gross lettable area
LTV - loan to value
GROUP SNAPSHOT
Stor-Age is the largest and most recognisable self storage property fund and brand in South Africa. The portfolio comprises 65 self storage
properties across both SA (49) and the UK (16). The SA portfolio is valued at R4.0 billion and the UK portfolio - under the brand
Storage King - at R2.0 billion. (In the UK a further 12 properties trade under the licence of the Storage King brand and generate licence
and management fee revenue. In total this represents 28 properties trading under the Storage King brand, the sixth largest in the UK self
storage market.)
OPERATIONAL REVIEW
- Total portfolio occupancy up 88 400m2 (SA 80 000m2; UK 8 400m2)
- Closing occupancy of 84.0% (SA); 80.3% (UK)
- Closing rental of R100.0/m2, up 9.3% (SA), and GBP21.63/sqf, up 0.8% (UK)(1)
Occupancy profile
31 March 2019 31 March 2018
GLA m2 Occupied m2 % occupied GLA m2 Occupied m2 % occupied
SA 357 600 300 600 84.0 258 800 220 600 85.3
UK 66 100 53 000 80.3 57 000 44 600 78.2
Total 423 700 353 600 83.5 315 800 265 200 84.0
SA
The SA portfolio closed at 357 600m2 GLA (2018: 258 800m2), up by 98 800m2 due to the acquisitions of All-Store (6 100m2) and the Managed
Portfolio (86 700m2) during the year, as well as the opening of Bryanston (3 900m2) in September 2018 and expansion at existing stores (2 100m2).
The negligible year-on-year decrease in closing occupancy, from 85.3% to 84.0%, reflects the impact of the Managed Portfolio acquisition and
the inclusion of the newly completed Bryanston.
Bryanston, developed under the CPC structure, commenced trading in September 2018 and has delivered an exceptionally strong performance with
occupancy gains of 2 900m2 in the seven months to March 2019. This represents a 48% occupancy level on the full GLA fit-out of 6 100m2. The
lease up of space has exceeded our expectations and reflects the viability of our strategy to place a quality product in a premium location
with an under-supplied market.
In October 2018 we completed the acquisition of the Managed Portfolio. The acquisition is in line with the board's stated intention at listing
and eliminates the former related party relationships of executive management. Nine of the 12 properties are high quality 'big-box' type stores
and nine have reached mature occupancy levels (80.0% or greater). Since acquisition, occupancy in the Managed Portfolio has grown by 4 400m2
and closed the year at 80.1% occupied on a full fit-out basis.
Local economic conditions remain challenging with low levels of business and consumer confidence. Several risks remain elevated, most notably
concerns around electricity supply shortages and increased tariffs, municipal rates, as well as low GDP growth. International volatility,
ongoing trade tensions and changing emerging market sentiment all weigh heavy on these domestic growth concerns.
UK
The UK portfolio closed at 66 100m2 GLA (2018: 57 000m2), up 9 100m2 year-on-year as a result mainly of the acquisitions of Viking Self Storage
Bedford ("Viking") and The Storage Pod ("Pod") in March 2019. Closing occupancy increased from 78.2% to 80.3%, driven by an increase of 1 300m2
in like-for-like occupancy and the positive impact of acquisitions.
Operationally we have been able to execute our integration plan for the Storage King business in line with our strategy. Our proven experience
in development and acquisitions, treasury management and capital allocation is yielding positive results. We believe the UK business is well
placed to pursue its medium-term goal of 85.0% occupancy and to capitalise on further acquisition and development opportunities, in a
disciplined manner.
The uncertainty as a result of Brexit will persist until the UK's trading relationship with the EU is more clearly defined. Against this
backdrop, the Storage King portfolio and the industry in general have continued to demonstrate resilience and have performed in line with our
expectations since the acquisition in November 2017.
(1) UK rental rate quoted on an annual basis
FINANCIAL RESULTS
The table below sets out the group's underlying operating performance by SA and the UK:
31 March 2019 31 March 2018
SA UK Total SA UK Total % variance
R'000 R'000 R'000 R'000 R'000 R'000 SA UK Total
Property revenue 329 171 191 950 521 121 241 399 68 778 310 177 36.4 179.1 68.0
Rental income (2) 310 004 172 050 482 054 233 657 61 702 295 359 32.7 178.8 63.2
Ancillary income 9 167 19 900 29 067 6 742 7 076 13 818 36.0 181.2 110.4
Rental guarantee 10 000 - 10 000 - - - 100.0 - 100.0
Licence fees - - - 1 000 - 1 000 (100.0) - (100.0)
Direct operating costs (75 649) (60 188) (135 837) (53 203) (23 714) (76 917) (42.2) (153.8) (76.6)
Net property operating income 253 522 131 762 385 284 188 196 45 064 233 260 34.7 192.4 65.2
(2) Tenant debtors impairment has been offset against rental income
The acquisitions in SA and the UK, as above, have been included for the part-period from their respective acquisition dates. Revenue and
earnings show significant increases year-on-year.
Total property revenue increased by 68.0% to R521.1 million (2018: R310.2 million). Rental income for the year was R482.1 million
(2018: R295.4 million), a 63.2% increase. On a like-for-like basis (excluding the acquisitions in the 2018 and 2019 financial years) SA rental
income increased by 7.5%, driven by a 0.5% increase in average occupancy levels and a 7.0% increase in the average rental rate. The latter was
slightly constrained by the 1% increase in VAT from 14% to 15%, effective 1 April 2018. Although we were able to pass on the increase to
existing tenants on the effective date, the nature of our dynamic pricing model meant we absorbed a portion of the VAT increase in rentals for
new tenants moving in after 1 April 2018. While the growth is slightly lower than previous reporting periods, the like-for-like growth is a
pleasing result in the overall context of the SA economic environment with residential and commercial customers under considerable financial
strain.
Total occupancy in the SA portfolio grew by 80 000m2 year-on-year. Excluding the impact of acquisitions, occupancy growth in the SA portfolio
was 4 500m2 comprising the seven-month lease up of Bryanston (2 900m2) and 1 600m2 relating to other properties in the portfolio. The closing
rental was up 9.3% year-on-year. Occupancy in the Managed Portfolio grew by 4 400m2 from the acquisition in October 2018 to year end. Rental
rate growth in the Managed Portfolio was 10.1% for the full year to March 2019.
The UK portfolio delivered a strong operational performance, broadly as expected. Total occupancy grew by 8 400m2 year-on-year, made up of
growth in the like-for-like portfolio of 1 300m2 and from acquisitions of 7 100m2. The closing rental was up 0.8% year-on-year.
Ancillary income (net of related costs) of R29.1 million (2018: R13.8 million) reflects the positive contribution of acquisitions to date.
Although ancillary income is a relatively small proportion of total revenue, each component makes a meaningful contribution to earnings with
little capital investment. In a more challenging economic environment, the overall performance of this revenue stream plays an important role
in generating overall earnings growth. Excluding once-off sundry items in both years (R0.4 million in 2019 and R0.6m in 2018), ancillary
income increased by 12.5% on a like-for-like basis.
The rental guarantee amount of R10.0 million relates to the Managed Portfolio acquisition, details of which are set out in the Acquisitions
and Developments section below.
Licence fee income of R1.0 million in the prior year relates to the opening of the Randburg property in the Managed Portfolio in July 2017.
Other revenue of R11.1 million (2018: R22.1 million) comprises property and asset management fees charged on the Managed Portfolio and
development fees on properties being developed under the CPC structure. The decrease in these fees is a result of the acquisition of the
Managed Portfolio.
The increase in direct operating costs to R135.8 million (2018: R76.9 million) reflects the impact of acquisitions. On a like-for-like basis,
direct operating costs increased by 8.2% due to the impact of load shedding (diesel cost to operate generators), increased electricity
tariffs and higher municipal rates charged on certain properties. Disciplined cost control remains a key priority.
The increase in administrative expenses from R36.9 million to R43.8 million relates mainly to the Storage King acquisition being included for
a full year (2018: five months). This increase is also attributable to the underlying growth in the business, a greater investment in
technology, centralisation and automation, the appointment of two additional non-executive directors, and the employment of additional staff.
Interest income of R48.9 million (2018: R23.6 million) comprises interest received on the share purchase scheme loans, cross currency interest
rate swaps and call and money market accounts. The increase relates mainly to the cross currency interest rate swaps entered into pursuant to
the Storage King transaction.
Interest expense of R81.8 million (2018: R33.1 million) comprises mainly interest on bank borrowings. The increase is due to the
GBP-denominated debt arising from the Storage King acquisition and higher levels of SA debt related to acquisitions during the year. Further
details of bank borrowings are set out in Capital Structure below.
CAPITAL STRUCTURE
Our financing policy is to fund our current needs through a mix of debt, equity and cash flow to enable the group to expand the portfolio and
achieve our strategic growth objectives.
Details of the group's borrowing facilities at 31 March 2019 are set out below:
31 March 2019
SA UK Total
R'000 R'000 R'000
Total debt facilities 1 645 000 981 193 2 626 193
Undrawn facilities 430 501 155 062 585 563
Gross debt 1 214 499 826 131 2 040 630
Net debt 687 818 794 920 1 482 738
Investment properties 3 999 366 2 029 736 6 029 102
Subject to fixed rates
- Amount 880 000 744 386 1 624 386
- % hedged on gross debt 72.5% 90.1% 79.6%
- % hedged on net debt 127.9% 93.6% 109.6%
Effective interest rate 9.15% 3.89% 6.67%
Gearing (LTV ratio) (3) 17.2% 39.2% 24.6%
(3) LTV ratio is defined as the ratio of debt as a percentage of gross investment property of R6.242 billion less finance lease obligations
relating to leasehold investment property of R213 million.
At 31 March 2019 the group had SA loan facilities of R1.645 billion available. The respective maturities of the various facilities range from
October 2019 to November 2021, with a weighted average maturity of 2.2 years. R1.125 billion of the facilities accrue interest at an average
rate of 1.40% below prime and the remaining R520 million accrues interest at JIBAR plus 1.66%.
The UK loan facility increased from GBP24.5 million to GBP52.0 million (R981.1 million) with an expiry date of November 2024. The loan
facility is priced at LIBOR plus 2.75% (previously LIBOR plus 3.0%) and is non-amortising (previously amortising).
The interest rate risk on the loan is hedged at approximately 90.0% of the gross debt, in line with underlying LIBOR fixed at 1.17%.
At 31 March 2019, Stor-Age's total gross borrowings amounted to R2.040 billion (2018: R758.6 million) with 79.6% (2018: 81.6%) subject to
fixed rates, and total undrawn borrowing facilities of R585.6 million (2018: R642.4 million).
On a net debt basis, over 100.0% of borrowings were subject to fixed rates (2018: 99.9%). Net debt stood at R1.483 billion at year end
(2018: R619.7 million) with a gearing ratio (LTV) of 24.6% (2018: 16.1%).
The effective interest rate at 31 March 2019 was 6.67% (2018: 6.54%).
The group raised over R1.0 billion in new equity through two accelerated bookbuilds (R400 million in October 2018 and R585 million in
March 2019) and a vendor consideration placement of R52.0 million for the acquisition of All-Store. Stor-Age also conserved R75.5 million cash
under the Dividend Reinvestment Programmes in July 2018 and December 2018.
Net asset value per share (net of non-controlling interest) was R11.70 (2018: R11.49) and net tangible asset value per share (net of non-
controlling interest) was R11.34 (2018: R11.01).
CROSS CURRENCY INTEREST RATES SWAPS ("CCIRS") AND HEDGING OF GBP EARNINGS
The acquisition of Storage King in November 2017 was financed through a combination of SA equity capital and UK denominated debt. The group
also makes use of CCIRS as part of its treasury management policy to create a synthetic matching of GBP funding in relation to GBP denominated
assets at optimal levels.
At 31 March 2019 the group had entered into CCIRS with a notional value of GBP25.0 million (2018: GBP20.0 million). The notional value of the
CCIRS represents an effective hedge of 38.3% (2018: 38.1%) of the net investment in Storage King. The group's GBP denominated debt of
GBP43.8 million (2018: GBP24.5 million), together with the notional value of the CCIRS, equates to an effective hedge of 63.1% (2018: 57.8%)
of GBP denominated assets.
Distributable earnings from the UK are repatriated to SA for distribution purposes. To manage the impact of currency volatility, the group
adopted a rolling hedging policy using forward exchange contracts ("FECs") as follows:
- 12 month forecast - at least 80%
- 13-24 month forecast - at least 75%
- 25-36 month forecast - at least 50%
FECs entered into by the group as at the date of this announcement are summarised below:
Six month period ending Hedging level (%) Forward rate
Mar 2019 100% R22.30
Sep 2019 100% R22.68
Mar 2020 100% R28.19
Sep 2020 75% R20.76
Mar 2021 75% R21.41
Sep 2021 50% R21.80
Mar 2022 50% R22.49
ACQUISITIONS AND DEVELOPMENTS
As previously announced:
All-Store
On 6 April 2018 Stor-Age concluded the acquisition of All-Store, located in Cape Town's northern suburbs, for a purchase consideration of
R52.0 million.
Bryanston and Craighall developments
The Bryanston development was completed in September 2018 at a total cost of R80.9 million with trading commencing in the latter part of the
month. On full fit-out Bryanston will comprise 6 100m2 GLA. The development was completed by Stor-Age Property Holdings Proprietary Limited ("SPH")
under the CPC acquisition structure. Under the terms of the development a cost saving of R1.0 million accrued to Stor-Age.
The Craighall development is currently in process under the same CPC acquisition structure. The development cost is R95.1 million (i.e. the
maximum amount payable by Stor-Age before any potential cost saving). On completion the property will have 6 650m2 GLA. The development is
progressing according to schedule and is expected to complete by August 2019.
Managed Portfolio
On 9 October 2018 Stor-Age acquired the Managed Portfolio (RSI 2 and RSI 3) for an aggregate purchase consideration of R58.0 million. The 12
purpose-built self storage properties - located in Cape Town, Johannesburg, Durban, Port Elizabeth and Pretoria - were previously operated and
managed by Stor-Age. The acquisition was structured with a rental guarantee of R44.5 million, paid upfront by the sellers (4) on the effective
date of the acquisition, and held in an escrow account. Stor-Age is entitled to draw down on the escrow amount over a 36-month period, with
the first period ending 31 March 2019, and thereafter for every six month period.
(4) Acucap Investments Proprietary Limited (being a wholly owned subsidiary of Growthpoint Properties Limited), SPH, and The Fairstore Trust.
UK acquisitions
In March 2019 the group acquired 100% of the issued share capital of Viking and Pod, details of which are set out below.
Viking Pod
Date of acquisition 6 March 2019 26 March 2019
Purchase consideration (including net working capital) GBP12.3 million (R229.6 million) GBP11.50 million (R215.3 million)
Location Bedford, Bedfordshire (East of England) Weybridge, Surrey (Southeast England)
GLA 48 000 sqf (4 500m2) 42 800 sqf (4 900m2)
Maximum lettable area (sqf) 54 000 sqf (5 000m2) 55 000 sqf (5 100m2)
Both acquisitions are mature, high-quality freehold self storage properties which trade into dense residential areas in locations which
complement the existing Storage King portfolio. The properties will be re-branded under the Storage King brand and managed under the existing
operating infrastructure.
INVESTMENT PROPERTIES
A reconciliation of the movement in investment properties (net of finance lease obligations) is set out below:
2019 2018
R million R million
Balance at beginning of year 4 034 2 050
Acquisitions
Unit Self Storage - 42
Storage King (including Crewe) - 1 711
StorTown - 145
All Store 52 -
Managed Portfolio (RSI 2 & 3) 1 120 -
Viking 230 -
Pod 215 -
New developments 81 -
Other (including expansion at existing stores, unit mix and GLA reconfigurations and other capitalised expenditure) 63 45
Disposal of investment property - (18)
CPC developments (Bryanston and Craighall) 146 40
Fair value adjustment 86 203
Movement in foreign exchange difference 215 (184)
Balance at end of year 6 242 4 034
Finance lease obligation relating to leasehold investment property (213) (181)
Net investment property at end of year 6 029 3 853
The group's policy is to have at least one-third of the properties externally valued by an independent valuer each year and the remaining
properties valued internally by the board, using the same methodology applied by the external valuers. In line with this policy, 17 of the
49 properties in the SA portfolio were valued independently by Mills Fitchet Magnus Penny (members of the South African Institute of Valuers)
at 31 March 2019.
For the UK portfolio, 14 of the 16 properties were valued independently by Cushman and Wakefield (Registered Valuers of The Royal Institution
of Chartered Surveyors in the UK) at 31 March 2019. The remaining two properties, Viking and Pod, had been independently valued by Cushman and
Wakefield at 30 November 2018. The board is satisfied that the internal valuation of these two properties at 31 March 2019 is consistent with
the independent valuation performed at 30 November 2018.
EVENTS AFTER THE REPORTING DATE
The board is not aware of any events that have a material impact on the results or disclosures of the group and which have occurred subsequent
to the end of the reporting period.
OUTLOOK
We remain focussed on our core objective of delivering real and sustainable growth to shareholders, driven by outperformance in our key focus
areas, namely: occupancy and revenue growth; acquisitions and new developments; and enhancing our market-leading operating platform.
For the year ahead this will require strong emphasis on active, hands-on management and disciplined operational focus at an individual property
level. By its nature, self storage is a micro-managed, micro-market business in which the monthly success at a property level can be impacted
by only a small margin of move-ins or move-outs. To achieve growth within the prevailing macroeconomic environment in SA and the UK will require
ongoing intense scrutiny of all operational aspects of the business.
We remain confident that our highly strategic approach and specialist sector focus and expertise, combined with the defensive and resilient
nature of our portfolio, will allow Stor-Age to continue delivering sustainable distribution growth. In this light the board anticipates
dividend growth of 7.0-9.0% for the year ending 31 March 2020.
This guidance is based on the assumptions that there is no further deterioration in the macroeconomic environment, demand for self storage
remains at its current level, electricity supply remains stable and that we will be able to absorb the rising utility costs and municipal rates
charges. This guidance has not been reviewed or reported on by the company's auditors.
Notice is hereby given of the declaration of the gross final dividend from income reserves (number 7) of 55.38 cents per share for the
six months ended 31 March 2019 ("Cash Dividend").
Salient dates and times: 2019
The dividend will be paid to Stor-Age shareholders in accordance with the timetable set out below:
Last date to trade cum dividend Tuesday, 2 July
Shares trade ex dividend Wednesday, 3 July
Record date Friday, 5 July
Payment date Monday, 8 July
Share certificates may not be dematerialised or rematerialised between Wednesday, 3 July 2019 and Friday, 5 July 2019. Payment of the dividend
will be made to shareholders on Monday, 8 July 2019. The dividend will be transferred to the Central Securities Depository Participant
("CSDP")/broker accounts of dematerialised shareholders and will be posted, at the risk of the shareholder concerned, to certificated
shareholders on or about that date.
TAX IMPLICATIONS
As the company has REIT status, shareholders are advised that the dividend meets the requirements of a "qualifying distribution" for the
purposes of section 25BB of the Income Tax Act (No. 58 of 1962), as amended, ("Income Tax Act"). The dividend on the shares will be deemed to
be a dividend, for South African tax purposes, in terms of section 25BB of the Income Tax Act.
South African tax residents:
The dividend received by or accrued to South African tax residents must be included in the gross income of such shareholders and will not be
exempt from income tax (in terms of the exclusion to the general dividend exception, contained in paragraph (aa) of section 10(1)(k)(i) of the
Income Tax Act) because it is a dividend distributed by a REIT. The dividend is exempt from dividend withholding tax in the hands of South
African tax resident shareholders, provided that the South African resident shareholders provide the following forms to the CSDP or broker in
respect of uncertificated shares, or to the company, in respect of certificated shares:
a) a declaration that the dividend is exempt from dividend tax; and
b) a written undertaking to inform the CSDP, broker or the company, should the circumstances affecting the exemption change or the beneficial
owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders are advised to contact their CSDP, broker
or the company to arrange for the abovementioned documents to be submitted prior to payment of the dividend, if such documents have not already
been submitted.
Non-resident shareholders:
Dividends received by non-resident shareholders will not be taxable as income and instead will be treated as an ordinary dividend which is
exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. It should be noted that up to
31 December 2013 dividends received by non-residents from a REIT were not subject to dividend withholding tax. Since 1 January 2014, any
dividend received by a non-resident from a REIT will be subject to dividend withholding tax at 20%, unless the rate is reduced in terms of any
applicable agreement for the avoidance of double taxation ("DTA") between South Africa and the country of residence of the shareholder
concerned. Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-resident shareholders is
44.304 cents per share. A reduced dividend withholding rate in terms of the applicable DTA may only be relied on if the non-resident
shareholder has provided the following form to their CSDP or broker in respect of uncertificated shares, or the company, in respect of
certificated shares:
a) a declaration that the dividend is subject to a reduced rate as a result of the application of DTA; and
b) a written undertaking to inform their CSDP, broker or the company, should the circumstances affecting the reduced rate change or the
beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident shareholders are advised to contact their
CSDP, broker or the company to arrange for the abovementioned documents to be submitted prior to payment of the dividend, if such documents
have not already been submitted.
The company's tax reference number is: 9027205245
Non participating shares:
An agreement was concluded prior to listing in November 2015 between the company, Castle Rock Investments and the HJS Trust, in terms of which
Stor-Age acquired all the assets owned by Stor-Age Self Storage Proprietary Limited in terms of section 44 of the Income Tax Act ("the Agreement")
in consideration for the allotment of 10 000 000 ordinary shares in the company ("Consideration Shares"), comprising 2.54% (2018:3.44%) of the
issued share capital, and the distribution of those shares to Castle Rock Investments and HJS Trust as a dividend.
A mechanism was agreed whereby the Consideration Shares will not participate fully in the distribution of distributable profits earned by the
company in the ordinary course of business ("Distributable Profits"), declared by the company as an interim or final dividend, for the period
from the listing date of the company (i.e. 16 November 2015) until 31 March 2020, on a tiered basis as follows:
% of the Consideration Shares
entitled to participate in the
distribution of the Distributable Profits
16 November 2015 to 31 March 2016 0%
1 April 2016 to 31 March 2017 0%
1 April 2017 to 31 March 2018 25%
1 April 2018 to 31 March 2019 50%
1 April 2019 to 31 March 2020 75%
1 April 2020 onwards 100%
The Consideration Shares will however participate fully in any distributions of profits earned from the disposal of any properties.
The amount which would have been declared as a dividend in respect of the Consideration Shares shall be declared and paid as a dividend,
pro rata, to the holders of the remaining shares in Stor-Age. As security for this arrangement, the Consideration Shares, or the relevant
portion thereof, as the case may be, will be held in certificated form in escrow for the period during which the distribution restrictions
apply and in the event that these shares are disposed of, the shares will be transferred to another escrow arrangement and the acquirer
thereof will be subject to the same restrictions regarding the distributions detailed above.
A reconciliation of the number of shares in issue and the number of shares entitled to receive the dividend, and the resultant dividend per
share, is included in the table below:
Distributable Profits (note 1) (R000's) 214 867
Number of shares entitled to the dividend ('000) 387 987
Number of shares in issue as at the date of this announcement ('000) 392 987
Consideration Shares not entitled to the dividend ('000) (note 2) 5 000
Dividend per share (cents per share) 55.38
Notes:
1. Stor-Age did not undertake any disposals of any properties during the year ended 31 March 2019 and all of the distributable income of
Stor-Age was earned in the ordinary course of business.
2. Excludes 5 000 000 Stor-Age shares, being all of the Consideration Shares that are excluded from participating in the Distributable Profits.
3. At the date of announcement, Stor-Age had 392 986 858 ordinary shares in issue.
On behalf of the board
PA Theodosiou GM Lucas
Chairman CEO
Cape Town
11 June 2019
BASIS OF PREPARATION
The provisional summarised consolidated annual financial results are prepared in accordance with the JSE Limited Listings Requirements for
provisional reports and the requirements of the Companies Act of South Africa as applicable to summary financial statements. The Listings
Requirements require provisional reports to be prepared in accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards and the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the
information required by IAS 34 Interim Financial Reporting. The accounting policies applied are in terms of IFRS and are consistent with the
policies applied in the previous consolidated financial statements except for the adoption of revised and new standards that became effective
during the year for which comparative information has not been restated. The implementation of these standards do not have a material impact
on the group's results.
Any information included in this announcement that might be perceived as a forward looking statement has not been reviewed or reported on by
the company's auditors in accordance with section 8.40(a) of the Listings Requirements.
The provisional summarised consolidated annual final results were prepared under the supervision of the Financial Director, Stephen Lucas CA(SA).
AUDIT OPINION
These provisional summarised consolidated annual financial results are extracted from the audited information, but are not in themselves
audited. The consolidated annual financial statements for the year ended 31 March 2019 were audited by KPMG Inc., who expressed an unmodified
opinion thereon. The audited consolidated annual financial statements for the year ended 31 March 2019 and the auditor's report thereon are
available for inspection at the company's registered office.
The directors take full responsibility for the preparation of these provisional summarised consolidated annual financial statements and the
financial information has been correctly extracted from the consolidated annual financial statements.
The auditor's report does not necessarily report on all of the information contained in these provisional summarised consolidated annual
financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement
they should obtain a copy of the auditor's report together with the accompanying financial information from the company's registered office.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 31 March
2019 2018
R'000 R'000
Assets
Non-current assets 6 644 781 4 493 563
Investment properties 6 242 413 4 034 430
Property and equipment 8 793 4 969
Stor-Age share purchase scheme loans 184 739 166 961
Goodwill and intangible assets 140 842 144 036
Other receivables 9 929 -
Unlisted investment 4 600 -
Deferred taxation 18 829 19 098
Derivative financial assets 34 636 124 069
Current assets 384 085 90 156
Trade and other receivables 119 273 65 165
Inventories 5 239 3 168
Cash and cash equivalents 259 573 21 823
Total assets 7 028 866 4 583 719
Equity and liabilities
Total equity 4 624 751 3 494 259
Stated capital 4 292 941 3 175 075
Non-distributable reserve 490 839 523 006
Accumulated loss (206 533) (108 855)
Foreign currency translation reserve 19 149 (120 732)
Share-based payment reserve 190 -
Total attributable equity to shareholders 4 596 586 3 468 494
Non-controlling interest 28 165 25 765
Non-current liabilities 1 706 902 801 598
Bank borrowings 1 493 450 624 985
Derivative financial liabilities 21 298 3 343
Finance lease obligation 192 154 173 270
Current liabilities 697 213 287 862
Bank borrowings 248 861 16 571
Trade and other payables 206 062 94 817
Provisions 6 266 16 331
Finance lease obligation 21 157 8 230
Dividends payable 214 867 151 913
Total equity and liabilities 7 028 866 4 583 719
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
31 March 31 March
2019 2018
R'000 R'000
Property revenue 524 351 310 177
- Rental income 485 284 295 359
- Other income 39 067 14 818
Impairment losses recognised on tenant debtors (3 230) -
Direct property costs (135 837) (76 917)
Net property operating income 385 284 233 260
Other revenue 11 065 22 053
- Management fees 11 065 22 053
Administration expenses (43 805) (36 923)
Operating profit 352 544 218 390
Transaction and advisory fees (357) (6 552)
Gain on bargain purchase - 377
Restructuring of bank borrowings (5) (13 590) -
Fair value adjustment to investment properties 85 675 203 001
Fair value adjustment to derivative financial instruments (120 431) 178 570
- Realised 12 649 56 321
- Unrealised (133 080) 122 249
Impairment loss on intangible asset (4 000) -
Depreciation and amortisation (6 679) (2 232)
Profit before interest and taxation 293 162 591 554
Interest income 48 917 23 601
Interest expense (81 786) (33 091)
Profit before taxation 260 293 582 064
Taxation expense (2 398) (3 839)
- Normal taxation 291 (3)
- Deferred taxation (2 689) (3 836)
Profit for the year 257 895 578 225
Other comprehensive income
Items that may be reclassified to profit or loss
Translation of foreign operations 143 183 (123 902)
Other comprehensive income for the year, net of taxation 143 183 (123 902)
Total comprehensive income for the year 401 078 454 323
Profit attributable to: 257 895 578 225
Shareholders of the company 257 566 576 726
Non-controlling interest 329 1 499
Total comprehensive income attributable to: 401 078 454 323
Shareholders of the company 397 452 455 994
Non-controlling interest 3 626 (1 671)
Earnings per share
Basic earnings per share (cents) 80.01 250.26
Diluted earnings per share (cents) 79.99 250.26
See page 23 for definitions used in relation to the above.
(5) Relates to the expensing of the unamortised portion of the raising fee relating to the Royal Bank of Scotland loan facility which was
settled during the year as part of the UK debt restructuring.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Foreign
Non- currency Share-based Non-
Stated distributable Accumulated translation payment controlling Total
capital reserve loss reserve reserve Total interest equity
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 April 2017 1 766 561 141 058 (17 788) - - 1 889 831 - 1 889 831
Total comprehensive income for the year - - 576 726 (120 732) - 455 994 (1 671) 454 323
Profit for the year - - 576 726 - - 576 726 1 499 578 225
Other comprehensive income - - - (120 732) - (120 732) (3 170) (123 902)
Transactions with shareholders, recognised directly
in equity
Issue of shares 1 408 514 - - - - 1 408 514 - 1 408 514
Proceeds 1 440 643 - - - - 1 440 643 - 1 440 643
Share issue costs (32 129) - - - - (32 129) - (32 129)
Transfer to non-distributable reserve - 381 948 (381 948) - - - -
Dividends - - (285 845) - - (285 845) - (285 845)
Total transactions with shareholders 1 408 514 381 948 (667 793) - - 1 122 669 - 1 122 669
Changes in ownership interests
Acquisition of subsidiary with non-controlling interest - - - - - - 27 436 27 436
Balance at 31 March 2018 3 175 075 523 006 (108 855) (120 732) - 3 468 494 25 765 3 494 259
Total comprehensive income for the year - - 257 566 139 886 - 397 452 3 626 401 078
Profit for the year - - 257 566 - - 257 566 329 257 895
Other comprehensive income - - - 139 886 - 139 886 3 297 143 183
Transactions with shareholders, recognised directly
in equity
Issue of shares 1 117 866 - - - - 1 117 866 - 1 117 866
Proceeds 1 126 512 - - - - 1 126 512 - 1 126 512
Share issue costs (8 646) - - - - (8 646) - (8 646)
Transfer to non-distributable reserve - (32 167) 32 167 - - - - -
Equity settled share-based payment charge - - - - 190 190 - 190
Dividends - - (387 468) - - (387 468) (1 174) (388 642)
Total transactions with shareholders 1 117 866 (32 167) (355 301) - 190 730 588 (1 174) 729 414
Acquisition of non-controlling interest without
a change in control - - 57 (5) - 52 (52) -
Balance at 31 March 2019 4 292 941 490 839 (206 533) 19 149 190 4 596 586 28 165 4 624 751
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
31 March 31 March
2019 2018
R'000 R'000
Cash flows from operating activities
Cash generated from operations 396 758 201 766
Interest received 44 982 19 365
Interest paid (75 283) (33 475)
Dividends paid (325 696) (209 222)
Taxation received 471 -
Net cash inflow/(outflow) from operating activities 41 232 (21 566)
Cash flows from investing activities
Additions to investment properties (348 045) (204 369)
Proceeds on disposal of investment properties - 5 369
Advance of Stor-Age share purchase scheme loans (21 096) (43 076)
Repayments of Stor-Age share purchase scheme loans 17 318 44 670
Acquisition of property and equipment (6 352) (2 828)
Acquisition of intangible assets (764) (1 799)
Acquisition of unlisted equity investment (4 600) -
Asset acquisition, net of cash acquired (426 130) -
Acquisition of subsidiaries, net of cash acquired and settlement
of financial liabilities - (1 079 212)
Net cash outflow from investing activities (789 669) (1 281 245)
Cash flows from financing activities
Advance of bank borrowings 735 526 247 774
Repayment of bank borrowings (507 460) (273 162)
Repayment of loans from previous shareholder of RSI 2 and RSI 3 (326 389) -
Proceeds from the issue of shares 1 112 512 1 392 557
Share issue costs (8 646) (32 129)
Repayment of finance leases (22 310) (8 693)
Net cash inflow from financing activities 983 233 1 326 347
Net cash inflow for the year 234 796 23 536
Effects of movements in exchange rate changes on cash held 2 954 (9 744)
Cash and cash equivalents at beginning of year 21 823 8 031
Cash and cash equivalents at end of year 259 573 21 823
SEGMENTAL INFORMATION
Segmental information is based on the geographic location of each investment property. The group trades in five of the nine provinces in
South Africa and in the United Kingdom through its subsidiary Betterstore Self Storage Holdings Limited. The group is managed on a
consolidated basis and inter-segmental transactions have been eliminated. The segmental information is limited to:
- On the statement of profit or loss and other comprehensive income: Rental income, other income, fair value adjustment to investment
properties and direct property costs.
- On the statement of financial position: Investment property, tenant debtors, inventories, goodwill and intangible assets, bank
borrowings and finance leases.
The chief executive officer reviews the segmental information on a quarterly basis.
Statement of profit or loss and other comprehensive income extracts*
Total Total Total
Western Free KwaZulu- Eastern South United as
Cape Gauteng State Natal Cape Africa Kingdom reported
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
For the year ending
31 March 2019
Property revenue 130 995 151 148 4 050 33 702 11 401 331 296 193 055 524 351
- Rental income 125 551 140 510 3 866 31 616 10 586 312 129 173 155 485 284
- Other income 5 444 10 638 184 2 086 815 19 167 19 900 39 067
Impairment losses recognised on tenant debtors (760) (888) (88) (314) (75) (2 125) (1 105) (3 230)
Direct property costs (28 828) (33 397) (1 595) (8 947) (2 882) (75 649) (60 188) (135 837)
Segment property operating income 101 407 116 863 2 367 24 441 8 444 253 522 131 762 385 284
Fair value adjustment to investment properties 53 586 26 257 2 802 4 886 1 064 88 595 (2 920) 85 675
For the year ending
31 March 2018
Property revenue 113 477 105 082 3 594 12 264 6 982 241 399 68 778 310 177
- Rental income 110 548 100 720 3 436 12 154 6 799 233 657 61 702 295 359
- Other income 2 929 4 362 158 110 183 7 742 7 076 14 818
Direct property costs (21 974) (23 463) (1 622) (4 000) (2 144) (53 203) (23 714) (76 917)
Segment property operating income 91 503 81 619 1 972 8 264 4 838 188 196 45 064 233 260
Fair value adjustment to investment properties 106 771 48 237 1 097 15 639 884 172 628 30 373 203 001
* Head office costs and treasury function costs are not allocated to the operating segments.
Statement of financial position extracts
Total Total Total
Western Free KwaZulu- Eastern South United as
Cape Gauteng State Natal Cape Africa Kingdom reported
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
31 March 2019
Investment properties 1 588 030 1 838 579 28 600 443 869 126 000 4 025 078 2 217 335 6 242 413
Tenant debtors 2 254 2 142 64 796 256 5 512 10 081 15 593
Inventories 1 918 2 027 78 308 127 4 458 781 5 239
Goodwill and intangible assets - - - - - - 58 894 58 894
Bank borrowings - - - - - - 826 131 826 131
Finance lease obligation 22 608 3 104 - - - 25 712 187 599 213 311
31 March 2018
Investment properties 1 161 948 1 026 053 25 700 216 863 59 000 2 489 564 1 544 866 4 034 430
Tenant debtors 1 314 1 594 82 354 139 3 483 6 396 9 879
Inventories 1 109 1 209 74 169 85 2 646 522 3 168
Goodwill and intangible assets^ - - - - - - 58 623 58 623
Bank borrowings^ - - - - - - 405 987 405 987
Finance lease obligation^ 3 181 2 699 - - - 5 880 175 620 181 500
31 March 31 March
2019 2018
Number of shares in issue 392 986 858 301 864 102
Net asset value*
Net asset value per share (cents) 1 176.82 1 157.56
Net asset value per share excluding non-controlling interest (cents) 1 169.65 1 149.03
Tangible net asset value per share (cents) 1 140.98 1 109.84
Net tangible asset value per share excluding non-controlling
interest (cents) 1 133.82 1 101.31
Unaudited Unaudited
31 March 31 March
2019 2018
Key reporting ratios*
Total property cost-to-income ratio 27% 25%
Based on the total direct property costs divided by property revenue.
Administrative cost-to-income ratio 9% 11%
Based on the administration expenses divided by total revenue.
^ The amounts are represented to conform with current year disclosure.
* The ratios are computed based on IFRS reported figures and have not been audited by the group's external auditors.
EARNINGS, HEADLINE EARNINGS AND DIVIDEND PER SHARE
31 March 31 March
2019 2018
R'000 R'000
Basic earnings (profit attributable to shareholders of the parent) 257 566 576 726
Basic earnings 257 566 576 726
Adjusted for:
Gain on bargain purchase - (377)
Impairment loss on intangible asset 4 000 -
Fair value adjustment to investment properties (85 675) (203 001)
Fair value adjustment to investment properties (NCI)+ 70 778
Headline earnings 175 961 374 126
Adjusted for:
Equity-settled share-based payment expense 190 -
Fair value adjustment to derivative financial instruments 133 080 (178 570)
Restructuring of bank borrowings 13 590 -
Depreciation and amortisation 6 679 2 232
Deferred tax 2 689 3 836
Foreign exchange gain available for distribution 10 149 -
Transaction and advisory fees 357 6 552
Antecedent dividend^ 45 353 77 590
212 087 (88 360)
Other adjustments
Non-controlling interests in respect of the above adjustments (357) 79
Distributable earnings 387 691 285 845
Dividend declared for the six months ending 30 September 172 824 133 932
Dividend declared for the six months ending 31 March 214 867 151 913
Total dividends for the year 387 691 285 845
+ Non-controlling interest.
^ In the determination of distributable earnings, the group elects to make an adjustment for the antecedent dividend arising as result of the
issue of shares during the period for which the company did not have full access to the cash flow from such issue.
31 March 31 March
2019 2018
Number of shares
Total shares in issue ('000) 392 987 301 864
Weighted average shares in issue ('000) 326 937 237 950
Shares in issue entitled to dividends ('000) 387 987 298 524
Weighted average shares in issue entitled to dividends ('000) 321 937 230 450
Weighted potential dilutive impact of conditional shares 57 -
Diluted weighted average number of shares in issue entitled to dividends 321 994 230 450
Basic earnings per share
Basic earnings per share (cents) 80.01 250.26
Diluted earnings per share (cents) 79.99 250.26
Headline earnings per share
Basic headline earnings per share (cents) 54.66 162.35
Diluted headline earnings per share (cents) 54.65 162.35
Dividends per share (cents) 106.68 97.83
- Interim dividend (cents) 51.30 47.02
- Final dividend (cents) 55.38 50.81
The Board declared a final dividend of 55.38 cents (2018: 50.81 cents) per share for the six months ended 31 March 2019 on 13 March 2019 and
finalised on 11 June 2019.
This represents growth of 9.0% over the comparative period, which is in line with the guidance provided in the results for the year ended
31 March 2018.
Earnings per share disclosed above is calculated in terms of IAS 33 Earnings per share and Circular 2/2015, issued by SAICA.
FINANCIAL INSTRUMENT FAIR VALUE MEASUREMENTS
The company's financial assets and liabilities are classified according to the following three-tiered fair value hierarchy:
- Level 1: Quoted prices (unadjusted) in an active market for an identical instrument.
- Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This
category includes instruments valued using: quoted market prices in active markets for similar instruments; quoted prices for identical or
similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly
or indirectly observable from market data.
- Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique
includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument's valuation. This
category also includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments
or assumptions are required to reflect differences between the instruments.
The table below shows financial assets and liabilities carried at fair value, where the fair value approximates the carrying value, according
to their fair value hierarchy level classification:
Carrying
value Level 1 Level 2 Level 3
R'000 R'000 R'000 R'000
31 March 2019
Assets
Derivative assets 34 636 - 34 636 -
Other receivables 32 232 - - 32 232
Unlisted investment 4 600 - 4 600 -
Liabilities
Derivative liabilities 21 298 - 21 298 -
31 March 2018
Assets
Derivative assets 124 069 - 124 069 -
Liabilities
Derivative liabilities 3 343 - 3 343 -
The following table reflects the valuation techniques used in measuring the Level 2 fair values:
Significant Inter-relationship between key
unobservable unobservable inputs and
Type Valuation technique inputs fair value measurements
Derivative assets Fair valued monthly by Nedbank, Standard Bank and Lloyds Bank Not applicable Not applicable
and liabilities: using mark-to-market mid market values. This involves,
Interest rate swaps inter alia, discounting the future cash flows using the
yield curves at the reporting date and the credit risk
inherent in the contract.
Derivative assets Fair valued monthly by Investec and Nedbank using mark-to-market Not applicable Not applicable
and liabilities: mid market values. This involves, inter alia, discounting the
Cross-currency future cash flows using the basis swap curves of the respective
interest rate swaps currencies at the dates when the cash flows will take place.
Derivative assets Fair valued monthly by Investec using mark-to-market mid market Not applicable Not applicable
and liabilities: values. This fair value isdetermined, inter alia, using quoted
Forward exchange forward exchange rates at the reporting date and present value
contracts calculations.
Unlisted investment Fair valued monthly by Cadiz Asset Management in relation to Not applicable Not applicable
underlying performance of the fund using appropriate discount
and default rates.
The following table reflects the valuation techniques used in measuring the Level 3 fair values:
Significant Inter-relationship between key
unobservable unobservable inputs and
Type Valuation technique inputs fair value measurements
Other receivables: Fair valued bi-annually by the directors based on the projected Financial information used Higher assumptions for stabilised
Rental guarantee revenue of the underlying investment properties versus the to calculate forecast occupancy, lease up rates and rental rates
expected rental revenue thresholds as agreed between the previous revenue - e.g. stabilised for the underlying investment
shareholders of Roeland Street Investments 2 and Roeland Street occupancy levels, lease up properties would result in an increase
Investments 3 (collectively referred to as the Managed Portfolio). projections, expected future in forecast revenue, and thus a decrease
growth in revenue. in valuation.
RELATED PARTY TRANSACTIONS
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other
party in making financial or operational decisions. The shares of Stor-Age Property REIT are widely held.
Identity of the related parties with whom material transactions have occurred
- Subsidiaries
- Roeland Street Investments Proprietary Limited
- Roeland Street Investments 2 Proprietary Limited ("RSI 2")
- Roeland Street Investments 3 Proprietary Limited ("RSI 3")
- Wimbledonway Investments Proprietary Limited
- N14 Self Storage Proprietary Limited
- Storage RSA Investments Proprietary Limited and its subsidiaries
- Units 1-4 Somerset West Business Park Proprietary Limited
- Unit Self Storage Proprietary Limited
- Stor-Age Properties KZN Proprietary Limited (Previously known as Dancor Properties Proprietary Limited)
- Stor-Age International Proprietary Limited
- Directors as listed in this announcement
- Related through common shareholding/directorships or affiliation with related parties
- Madison Square Holdings Close Corporation
- Stor-Age Property Holdings Proprietary Limited
- Fair store Trust
Material related party transactions and balances
31 March 31 March
2019 2018
R'000 R'000
Related party balances
Amounts - owing to related parties 55 500 -
Amounts - owing by related parties 60 9 325
Working capital - owing by related parties - 1 024
Working capital - owing to related parties - 2 492
Related party transactions
Interest income on Stor-Age share purchase scheme loans 13 819 8 739
Interest income from related party 309 -
Interest expense to related party 1 223 -
Construction fees expensed to related party 45 656 30 163
Development fees income from related parties 369 4 953
Asset management income from related party 3 212 7 531
Property management income received from related party 3 449 4 913
Licence income received from related party - 1 000
Office rental expense to related party 1 270 801
Office rental income from related party 100 -
Disposal of Bryanston land - 18 550
Purchase of Bryanston self storage property (6) 80 946 -
Acquisition of RSI 2 and RSI 3 from related parties 36 250 -
(6) Relates to the development of Bryanston under the CPC structure. The development was completed in September 2018 and acquired by Stor-Age
for a consideration of R80.9 million.
DEFINITIONS
Other income comprises licence fee income relating to the opening of new stores in the Managed Portfolio and ancillary income such as the sale
of merchandise (e.g. packaging materials and padlocks), administration fees, late fees, rental guarantee income and other sundry income.
Direct property costs comprise mainly store-based staff salaries, rates, utilities, a full allocation of marketing spend and other property-related
costs such as insurance, maintenance, IT and communications at a property level.
Management fees comprise property and asset management fees charged on the Managed Portfolio and development fees on properties being developed
under the CPC structure.
Administration expenses relate mainly to support function costs for IT, finance, HR, property management, professional fees and directors' remuneration.
Impairment losses recognised on tenant debtors in 2018 rental income was reflected net of impairment losses on tenant debtors.
ADMINISTRATION
Registered office
216 Main Road
Claremont
7708
Directors
PA Theodosiou (Chairman)(#)(+), GM Lucas (CEO)(*),
SC Lucas(*)(+), SJ Horton(*), MS Moloko(#),
GA Blackshaw(^), GBH Fox(#)(+),
KM de Kock(#), P Mbikwana(#)
^ Non-executive
# Independent non-executive
* Executive
+ British citizen
Transfer secretaries
Computershare Investor Services Proprietary Limited
2nd Floor
Rosebank Towers
15 Biermann Avenue
Rosebank
Sponsor
Questco Corporate Advisory Proprietary Limited1st Floor, Yellowwood House
Ballywoods Office Park
33 Ballyclare Drive
Bryanston
Investor relations
Singular Investor Relations (a division of Systems Proprietary Limited)
28 Fort Street Birnam
Date: 11/06/2019 08:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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