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REBOSIS PROPERTY FUND LIMITED - Short-form announcement results for the year ended 31 August 2019

Release Date: 11/11/2019 07:05
Code(s): REB REA REBC15     PDF:  
 
Wrap Text
Short-form announcement results for the year ended 31 August 2019

REBOSIS PROPERTY FUND LIMITED
(Rebosis or the company) 
(Registration number 2010/003468/06)
(Approved as a REIT by the JSE)
JSE share code Rebosis A share: REA
JSE share code Rebosis Ordinary share: REB
Alpha code: REBI 
ISIN Rebosis A share: ZAE000240552
ISIN Rebosis Ordinary share: ZAE000201687

SHORT-FORM ANNOUNCEMENT RESULTS
for the year ended 31 August 2019

Net Property Income        growth             0.4%
Vacancy Rate               growth             6.5%
Retail Footfall            growth             2.5%
Tangible NAV B shares                        R7.78
Total Assets                               R17.2bn
Portfolio WAULT                           3.3years
Retail Trading Density                        5.4%
Office Renewals                          202 574m2

* The reported tangible NAV attributable to the REB shares is the net 
asset value excluding goodwill after netting off market cap of REA 
shares

                                                     Group
                                         Unaudited           Audited
                                           for the           for the
                                        year ended        year ended
                                         31-Aug-19         31-Aug-18
Revenue (R’000)                          1 842 144         2 261 439
Distributable income 
per A Share (cents)                         265.50            252.86 
Distributable income 
per B Share (cents)                           8.36             92.83 
Basic and diluted earnings 
per A Share (cents)                         265.50            252.86 
Basic and diluted earnings 
per B Share (cents)                        (503.29)          (163.75)
Basic and diluted headline 
earnings per A Share (cents)                265.50            252.86 
Basic and diluted headline 
earnings per B Share (cents)                (14.69)            15.72 
Net asset value per A Share (R)              13.65             22.75
Net asset value per B Share (R)               8.29             12.76

INTRODUCTION

Rebosis is a JSE listed real estate investment trust (REIT) with a 
high quality diversified portfolio across commercial and retail 
assets. The majority of the commercial income enjoys a sovereign 
underpin from leases to national government departments accross 36 
buildings. Its retail portfolio has a mix of dominant and newly built 
shopping centres set to dominate in their nodes in Port Elizabeth 
(Baywest Mall) and Centurion (Forest Hill City).

FINANCIAL RESULTS

Distributable income decreased by 71% from R791 million to R226 
million for this reporting period of which R250 million was as a 
result of once off items. In addition, finance income decreased by 
R190 million due to lower income from cross currency swaps as well as 
loss of income due to the BBBEE consortium and the Charitable trust. 
The increase in bad debt provision of R61 million and tax expense of 
R38 million reduced the distributable income further.

"The Board deemed it prudent to deleverage the fund and has therefore 
resolved to not declare a full year dividend for the year ending 31 
August 2019. Investment property was revalued at year-end by 
independent valuers. The value of the property declined by 8.7% to 
R16.3 billion. The direct investment in New Frontier Properties and 
the loan to the BEE consortium has been written off to Rnil. The 
impairment of New Frontier Properties of R2.4 billion together with 
the valuation adjustments above, resulted in the loan to value  
increasing from 51.6% as at 31 August 2018 to 60.9% as at 31 August 
2019."

DECLARATION AND PAYMENT OF CASH DIVIDEND

The Rebosis Board has resolved not to declare a dividend for the 
financial year-ended 31 August 2019.

PROSPECTS

The company has achieved good operational efficiencies in a difficult 
trading environment including progress on lease renewals and 
containing vacancies. It will continue to focus on these key 
efficiencies including remaining renewals on expired leases in order 
to improve WAULT that would lead to better credit profile especially 
in light of expiring debt. 

There will be more emphasis to continue the disposal program on the 
back of the lease renewals to reduce LTV and the Delta merger 
including other measures to unlock value.

SHORT-FORM ANNOUNCEMENT

This short-form announcement has been prepared by 
Ms I. King CA (SA), in her capacity as Chief Financial Officer of the 
company, and is the responsibility of the directors of Rebosis. The 
full announcement ("Full Announcement") was released on SENS on 11 
November 2019 and can be found on the company’s website at 
http://www.rebosis.co.za/#investor-relations. The full announcement 
is also available on the JSE’s website at 
https://senspdf.jse.co.za/documents/2019/jse/isse/REB/ye2019.pdf.

The information contained in this short-form announcement is only a 
summary of the information in the Full Announcement and does not 
contain full or complete details. Any investment decision by 
investors and/or shareholders should be based on consideration of the 
Full Announcement published on SENS and on the company’s website as a 
whole.

A copy of the Full Announcement is available for inspection, and may 
be requested, by investors and/or shareholders at the Company’s 
registered office, 2nd Floor, Roland Garros Building, The Campus, 
Corner Sloane and Main Streets, Bryanston, 2191, Attention: Isabeau 
King, and at the offices of the Sponsor (Nedbank Corporate and 
Investment Banking, a division of Nedbank Limited, Nedbank 135 
Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, 2196, Attention: 
Michelle Benade) at no charge, during business hours from 11 November 
2019 to 25 November 2019.

The information contained in this short-form announcement has not 
been reviewed or reported on by the company’s auditors.

By order of the Board

Monday, 11 November 2019

Equity and Debt Sponsor

Nedbank CIB

Date: 11/11/2019 07:05:00
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