|Unitholders are advised that supplementary information regarding the performance of the retail portfolio for the period ended 30 June 2017 can be found on the website of Liberty Two Degrees: http://www.liberty2degrees.co.za.|
|Liberty2D announced that Mr Michael Ilsley has resigned with immediate effect from the board.|
|Liberty2D published their maiden set of interim results. Net rental and related income came in at R179.5 million, profit from operations was R158.8 million, total earnings was recorded at R313.6 million, while headline earnings per share was 29.49 cents per share. |
Declaration of a cash distribution
The Manager has approved and notice is hereby given of a distribution of 30.00 cents per unit for the six months ended 30 June 2017.
The performance of the L2D assets is underpinned by the quality of the portfolio. In spite of the tough economic environment and the resultant impact on the consumer, the portfolio remains resilient. We are in the process of implementing the acquisition of a further proportional share in the co-owned portfolio to the value of R2.5 billion following the exercise of the PUT option by Liberty. The differential between interest earned (per the pre-listing statement forecasted at 8%) and the net yield earned on the real estate assets acquired, which is calculated as 6.8% may reduce our 2017 distribution set out in the pre-listing statement by 2.5 cents per unit. The net yield is calculated by dividing the expected net property income of these additional properties by the purchase price. The remaining assumptions in the pre-listing statement remain valid. The additional stake in these high quality assets that are already managed by SRFM, enhances the total return of the portfolio going forward. The forecast has not been reviewed or reported on by L2D's independent external auditors. L2D uses distribution per unit as a relevant measure of financial performance.
|Unitholders of Liberty Two Degrees are advised that Mr Angus Band has been appointed as an independent non- executive director and chairman of the board of the Manager, effective 26 July 2017. He has also been appointed to all sub-committees of the board. Mr. Band brings many years of business experience to the board.|
In addition, unitholders are further advised that the Manager has appointed Ms Lynette Ntuli as a director of the board, also effective 26 July 2017. Ms Ntuli is a property, asset management and infrastructure solutions specialist. The Manager of Liberty Two Degrees welcomes the appointment of the independent non-executive directors to its board and confirms that the relevant regulatory approval has been received.
|Liberty2D and its co-owners have recently signed a binding offer to lease the Nelson Mandela Square offices (?lease agreement?). The lease agreement is for 6 350 m2 of office space with an international tenant for a period of 5 years. The rental obligation date of the lease agreement is from 1 October 2017. The lease agreement will reduce Nelson Mandela Square?s office vacancy (currently at 4 599 m2 as at the end of February 2017) to zero. As a consequence hereof certain existing tenants in occupation at Nelson Mandela Square will be relocated into the Atrium on 5th and Sandton Office Tower thereby reducing vacancies in these offices. This lease agreement should also assist in underpinning the retail performance of both Nelson Mandela Square and Sandton City which are linked via a pedestrian bridge. This is a noteworthy deal in the Liberty2D portfolio, given the level of competition for office space in Sandton and shows the robust and quality nature of our assets. This, together with other leasing activities in Atrium on 5th in Sandton, reduces the overall office vacancy in Liberty2D to 4.5%.|
Supplementary information on the retail portfolio
Unitholders of Liberty2D are advised that supplementary information regarding the performance of the retail portfolio for the period ended 31 December 2016 can be found on the website of Liberty2D - hwww.liberty2degrees.co.za.
|Unitholders of Liberty Two Degrees are referred to the announcement released on 3 April 2017 and are advised that Mr Michael Ilsley, currently on the board as an independent non-executive director, will serve as the interim chairman, until such time a new chairman is appointed. |
As previously announced the Manager of Liberty Two Degrees is still in the process of appointing additional independent non-executive directors to its board, subject to regulatory approval, and will make further announcements when finalised.
|The Manager of Liberty2D announces that Mr Peter Moyo has resigned with immediate effect from the board. Subject to regulatory approval, the Manager of Liberty2D will announce a new chairman to its board in due course, and make a further announcement once finalised. The Manager is in the process of appointing additional independent non-executive directors to its board, subject to regulatory approval, and will make a further announcement in due course.|
|Liberty Two Degrees announced that, following approval by the Financial Services Board, Mr Jos? Snyders has been appointed as the financial director of the Manager replacing Mr John Sturgeon, effective 23 March 2017. |
Mr Sturgeon will remain on the board as a non-executive director, enabling continued support to the board and utilisation of his experience in this capacity.
The Manager of Liberty Two Degrees is in the process of appointing additional independent non-executive directors, subject to regulatory approval, to its board and will make a further announcement in due course.
|Unitholders are referred to the summarised results for the period ended 31 December 2016 published on SENS on 16 February 2017, wherein shareholders were advised of the maiden distribution of 4.85047 cents per unit for the period ended 31 December 2016. |
Following the Budget Speech delivered by the Minister of Finance, Pravin Gordhan, on 22 February 2017 wherein the dividends withholding tax rate was increased from 15% to 20%, the draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill has amended section 64E of the Income Tax Act No. 58 of 1962 and the increased dividends withholding tax of 20% applies in respect of any dividend paid on or after 22 February 2017.
Non-resident unitholders are accordingly advised that the net distribution amount due to non-resident unitholders, 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 unitholder, is 3.88038 cents per share and not 4.12290 cents per unit as previously disclosed. The tax position in respect of the distribution received by or accrued to South African tax residents remains unchanged.
The salient dates and times and other information provided in respect of the distribution declaration announced on 16 February 2017 remain unchanged.
|The following results are the company?s maiden final results. Property portfolio revenue came in at R43.9 million. Profit from operations were R26.4 million whilst total earnings were recorded as R96.6 million. In addition, headline earnings per unit were 4.8 cents per unit. |
The board of the manager has approved and notice is hereby given of a maiden distribution of 4.85047 cents per unit for the period to 31 December 2016.
The scale and presence, quality and location of the retail assets, continue to position L2D as one of the premier real estate investment opportunities in South Africa. The historic capital expenditure incurred to maintain the high quality of the properties, provides a platform for good growth without incurring significant amounts of new capital to refresh the environments.
In the short term, L2D will focus its growth strategy in South Africa. Growth is expected from carefully identified quality acquisition targets, as well as the current development pipeline in respect of Liberty Midlands Mall, the Eastgate Complex and Melomed Hospital.
Looking at the year ahead, management is confident that the strategic approach of investing in high-quality assets that remain resilient and defensive during tough economic times, positions L2D for sustainable growth. L2D's objective is to deliver on the forecast distribution in its PLS of 65c per unit for the year ending 31 December 2017.
Given the nature of the business, L2D uses distribution per unit as its key performance measure as it is considered a more relevant performance measure than earnings or headline earnings per unit.
|Liberty Two Degrees is a portfolio created under the Liberty Two Degrees Scheme in terms of the CISCA to afford investors growth in income and capital by investing at fair prices in a balanced spread of immovable properties and related assets permitted by the Trust Deed. The Liberty Two Degrees Scheme was registered by the Registrar on 28 October 2016 and is to be managed by STANLIB REIT Fund Managers. Liberty Two Degrees will invest in the Liberty Property Portfolio immediately prior to the listing.|
The Liberty Property Portfolio is one of South Africa?s iconic, predominantly retail property portfolios with interests in assets such as the Sandton City Complex, the Eastgate Complex and Melrose Arch. The Liberty Property Portfolio comprises predominantly retail real-estate assets in South Africa. In Johannesburg, the retail assets are an interest in the Sandton City Complex, the Eastgate Complex and Nelson Mandela Square. Other retail assets are two regional shopping centres, being Liberty Midlands Mall in KwaZulu-Natal and Liberty Promenade Mitchells Plain in the Western Cape. The Liberty Property Portfolio also includes interests in the mixed-use precinct of Melrose Arch and the newly developed Botshabelo Mall.