Wrap Text
Unaudited Abridged Consolidated Financial Statements For The Three And Six Months Ended 31 December 2017
GRIT REAL ESTATE INCOME GROUP LIMITED
(previously Mara Delta Property Holdings Limited)
(Registered by continuation in the Republic of Mauritius)
(Registration number 128881 C1/GBL)
SEM share code: DEL.N0000
JSE share code: GTR
ISIN: MU0473N00036
("Grit" or "the Company" or "the Group)
UNAUDITED ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED 31 DECEMBER 2017
(the "financial statements")
HIGHLIGHTS
ANNUALISED DIVIDEND YIELD - 8.6% SEM AND 9.6% JSE
WACD - 5.69%
(2017: 5.78%)
WALE - 7.4 years
NAV GROWTH - 2%
UPCOMING ACQUISITIONS IN GHANA
16.7% INCREASE IN PROPERTY PORTFOLIO
MAINTAIN FORECAST DISTRIBUTION GROWTH
3% - 5%
PORTFOLIO OCCUPANCY
96.1%
DIRECTORS' COMMENTARY
NATURE OF THE BUSINESS
Grit is a pan-African property income fund focusing on African real estate assets (excluding South Africa), underpinned by
predominantly US Dollar and Euro-denominated medium to long-term leases with high quality global graded tenants delivering
sustainable income and growth. The Company holds dual primary listings on the Main Board of the Johannesburg Stock
Exchange ("JSE") since July 2014 and on the Stock Exchange of Mauritius Ltd ("SEM") since March 2015. The Company has seen
significant growth in the portfolio, with income-producing assets of US$592m. The Company has exposure into Morocco,
Mozambique, Mauritius, Kenya and Zambia and during the reporting period entered the Botswana market. The Company is currently
assessing an opportunity in Ghana.
The Group's strategy remains to expand its property portfolio throughout targeted countries in Africa, with assets that will
provide sustainable long term, hard currency-based income from high quality global graded tenants with a core focus on
enhancing shareholder value and dividend yield. The Company's sustained delivery has been attributed to the geographic asset
class diversification, low vacancy rate, long-term lease profile and strong management expertise.
REVIEW
Results
The distribution approved by the Grit Board of Directors ("the Board") for the six months ended 31 December 2017 is US$6.07 cents
per share. The Company maintains its forecast growth distribution of 3% to 5% on the prior year's full year distribution of
US$12.07 cents per share.
Rental income together with income from associates has increased by 82% versus the first six months of the 2017 financial year.
This is on the back of asset acquisitions in the latter half of the previous financial year, being Tamassa Resort, Cosmopolitan Mall
and Mall de Tete together with Imperial Distribution Centre and Beachcomber Hotels that transferred during August 2017 as well as
the completion of Commodity House Phase II(1) in November 2017. The rental income increase included the impact of the hard currency-
based rental escalations. Operating costs were maintained at expected levels. Operating costs percentages reduced significantly to
15.3% versus 25.3% for the first six months of the 2017 financial year.
(1) - Commodity House Phase II is the building developed on the same site as the existing Anadarko Building located at JN3412 in
Maputo, Mozambique.
Total income-producing assets have increased 16.7% from US$508m in June 2017 to US$592m in December 2017. This is
attributable to the transfers concluded in August 2017 and completion of the Commodity House Phase II building in Mozambique
during November 2017. These transactions were all concluded timeously and have improved the NAV and diversification of
the portfolio.
Post the transfer of these properties Grit's sectorial and geographical split can be seen below. These changes are in line with the
Company's investment strategy to maintain geographical and asset class diversification.
Geographical split
% Shareholding 2015 2016 2017 2018
Mozambique 45.4% 37.2% 33.6% 32.8%
Zambia 13.6% 17.6% 15.9% 20.3%
Kenya 2.1% 1.8% 4.9% 4.3%
Mauritius 4.8% 21.5% 25.9% 24.2%
Morocco 34% 22% 20% 17.8%
Botswana 0% 0% 0% 0.6%
Sectoral split
% Shareholding 2015 2016 2017 2018
Commercial 40.7% 27.3% 24.6% 29.3%
Retail 53.5% 47.9% 43.2% 38.2%
Light Industrial 2.9% 1.9% 5.0% 4.5%
Hospitality 0.0% 18.5% 23.3% 21.9%
Corporate Accommodation 3% 4% 4% 5.5%
Listed Equity 0% 0% 0% 0.6%
COST OF FUNDING
The Company continues to focus on reducing its cost of borrowings with the weighted average cost of debt at 5.69% for the
six months ended 31 December 2017 (year ended 30 June 2017: 5.78%). New funding mechanisms have been identified to
further reduce the cost of debt which should be affected during the following six months. The Company's loan to value ratio at
31 December 2017 was 49.19%, up from 41.60%(1) reported in June 2017. The Company has a medium-term targeted property loan
to value ratio of 40% and is currently working on the reduction of the loan to value.
(1) Prior to full disbursement of cash held at 30 June 2017 from the rights issue.
Weighted average cost of debt
Period FY2015 FY2016 FY2017 HY2018
WACD 6.94% 6.22% 5.78% 5.69%
Grit continues its multibank approach, with exposure to a number of financiers across the various jurisdictions.
The composition of debt providers is as follows:
Debt provider Dec 2017 Jun 2017 Increase/(decrease)
Bank of China 31.5% 22.2% 9.3%
Standard Bank 23.1% 20.6% 2.5%
Investec Bank 17.1% 21.5% (4.4%)
State Bank Mauritius 13.2% 15.1% (1.9%)
Barclays 10.4% 3.1% 7.3%
Afrasia Bank 3.8% 8.2% (4.4%)
Banco Unico 1.0% 1.3% (0.4%)
Rockcastle/Standard Bank 0.0% 5.5% (5.5%)
Nedbank South Africa 0.0% 2.4% (2.4%)
Total 100.0% 100.0%
Debt expiry profile
Rank Exipy Value (US$m)
1 Feb 2018 5.0
2 Apr 2018 11.7
3 Jul 2018 38.0
4 Sep 2018 20.0
5 Nov 2018 12.0
6 Feb 2019 7.4
7 Mar 2019 11.7
8 Sep 2019 10.5
9 Mar 2020 26.7
10 Dec 2020 14.6
11 2021 Onwards 154.5
Notes:
1. To be settled with cash
2. Revolving credit facility
3. Current refinancing negotiations in process
4. Revolving credit facility
5. Current refinancing negotiations in process
NAV PER SHARE
Grit's NAV per share increased from US$150.94 cents per share in 30 June 2017 to US$158.73 cents per
share at 31 December 2017. Net of dividends, NAV per share increased 2.08% from US$149.56 cents per share in 30 June 2017 to
US$152.67 cents per share at 31 December 2017. The key driver of this growth over the past six months were revaluations to the
existing portfolio.
NAV Evolution
June 2017 as reported 150.9
2017 Final dividend -1.4
June 2017 Net of Dividend 149.6
2018 Distributable Profit 6.1
Property fair value adjustments 3.0
FCTR 0.8
Non cash items -0.6
Dec 2017 as reported 158.7
2018 Interim dividend -6.1
Dec 2017 Net of Dividend 152.7
Vacancies
Grit's portfolio vacancy is 3.9% at 31 December 2017. Excluding Anfa Place Shopping Centre in Morocco, which is currently under
redevelopment, the vacancy for the portfolio is 1.3%. Compared to the industry norms of 4.8%(1), the occupancy rate across the
portfolio is exceptional.
(1) Source: Grit vs IPD SA Benchmark report produced by MSCI as at 30 June 2017.
MARKET LIQUIDITY
Liquidity has been a key focus area over the past twelve months for Grit. New institutional shareholders entered the share register
from the UK, Ghana and Mauritius. The trading statistics record demonstrates the improvement made over the period on both
exchanges, JSE and SEM.
Grit has obtained inclusion into the following indexes:
- SEM 10 Index inclusion since 4 October 2017.
- Inclusion in Cloud Atlas AMI series BIG 50 EX-SA index.
TRADING STATISTICS H1 FY18 H1 FY17 Movement
JSE
Trading frequency 73.8% 54.8% 34.7%
Average daily value traded (ZAR) 590,790 525,197 12.5%
Average daily volume traded (number of shares) 36,600 27,603 32.6%
SEM
Trading frequency 55.6% 2.4% 2 216.7%
Average daily value traded (USD) 33,764 999 3 279.8%
Average daily volume traded (number of shares) 24,574 580 4 136.9%
OUTLOOK
Whilst the Board recognises the complexity and risk in Africa, the Group has positioned itself with a skilled and experienced
management team and platform to capitalise on the significant opportunities on the continent. The distribution growth is
forecast to be between 3% and 5% in US Dollars, derived from its strong portfolio demonstrating resilience to macroeconomic
challenges due to the strength of the underlying tenant base. The Company will continue to grow in current jurisdictions
leveraging off the current investment team and cost base. New jurisdictions with promising growth prospects will be targeted.
Asset growth financed through shares issued at NAV to vendors will take place before year-end.
Any forecast included above has been based on the assumption of stable regional, political and economic environments as well
as a stable global macroeconomic environment.
This forecast is the responsibility of the Grit Board and has not been reviewed or reported on by the auditors of the Company.
Unaudited for Unaudited for Unaudited for Unaudited for Audited for
the quarter the quarter the six the six the year
ended ended months ended months ended ended
31 December 31 December 31 December 31 December 30 June
CONSOLIDATED STATEMENT OF 2017 2016 2017 2016 2017
COMPREHENSIVE INCOME US$ US$ US$ US$ US$
Gross rental income 7,786,133 4,996,106 15,168,079 10,699,947 24,329,570
Straight-line rental income accrual 128,960 293,787 610,120 775,620 1,132,143
Revenue 7,915,093 5,289,893 15,778,199 11,475,567 25,461,713
Income from associates 6,144,375 543,105 8,920,625 2,527,652 7,621,227
Property operating expenses (1,327,980) (1,400,846) (2,739,613) (2,936,403) (7,170,116)
Net property income 12,731,488 4,432,152 21,959,211 11,066,816 25,912,824
Other income 809,999 760,900 1,621,060 1,377,901 3,274,668
Administrative expenses (1,740,918) (1,566,615) (3,183,463) (3,035,235) (5,601,436)
Profit from operations 11,800,569 3,626,437 20,396,808 9,409,482 23,586,056
Acquisition fees and set-up costs 74,895 89,022 (179,601) (88,367) (1,166,356)
Fair value adjustment on investment property 2,800,299 4,338,108 2,800,299 4,290,560 2,936,120
Fair value adjustment on financial instruments (5,550) 87,022 (60,068) 127,020 103,624
Gain from bargain purchase - - - - 957,837
Foreign currency (losses)/gains (892,003) (2,670,876) 231,786 (2,641,570) 778,640
Profit before interest and taxation 13,778,210 5,469,713 23,189,224 11,097,125 27,195,921
Interest income 2,539,895 185,727 3,848,553 304,952 1,993,516
Finance costs (4,698,542) (2,484,922) (8,797,687) (4,263,606) (10,970,561)
Profit for the period before tax 11,619,563 3,170,518 18,240,090 7,138,471 18,218,876
Current tax expense - (95,066) - (930,379) (32,326)
Deferred tax (expense)/income (1,064,467) 202,183 (742,214) 1,413,701 (454,865)
Profit for the period after tax 10,555,096 3,277,635 17,497,876 7,621,793 17,731,685
Profit/(loss) on translation of functional currency 1,588,480 (19,098) 1,636,043 (53,185) 1,065,619
Total comprehensive income 12,143,576 3,258,537 19,133,919 7,568,608 18,797,304
Unaudited for Unaudited for
the six months the six months
ended ended Audited for
31 December 31 December the year ended
RECONCILIATION OF BASIC EARNINGS 2017 2016 30 June 2017
AND HEADLINE EARNINGS US$ US$ US$
Basic earnings 17,497,876 7,621,793 17,731,685
Fair value adjustments on investment property (net of deferred taxation) (2,800,299) (4,290,560) (2,936,120)
Loss from bargain purchase - - (957,837)
Share of value adjustment on investment property accounted by associate (3,380,000) (901,596) (4,181,162)
Fair value adjustments on financial instruments 60,068 (127,020) (103,624)
Headline earnings attributable to shareholders 11,377,645 2,302,617 9,552,942
Less: Straight-line rental income accrual (net of deferred taxation) (793,156) (415,687) (939,219)
Unrealised foreign currency exchange differences (net of deferred taxation) (307,666) 2,750,223 1,209,426
Share in income from associates - 901,596 1,786,328
Acquisition costs of investment property 103,333 2,429 774,404
Deferred taxation - other adjustments 925,250 - 273,057
Setup costs 76,268 85,938 391,952
Amortisation of intangible assets 21,393 262,090 25,786
Antecedent dividend - 897,264 2,220,889
Tax credits utilised 1,081,454 - -
Retained distributable earnings 166,811 55,003 (166,811)
Distributable earnings attributable to shareholders 12,651,332 6,841,473 15,128,754
Number of shares in issue at interim 208,514,261 100,061,130 111,787,042
Number of shares in issue 208,514,261 111,787,042 208,514,261
Weighted average number of shares 208,514,261 101,909,223 110,435,576
Earnings per share
Basic and diluted profit per share (cents) 8.39 7.48 16.06
Headline and diluted headline earnings per share (cents) 5.46 2.26 8.65
Distribution per share
Distribution per share (cents) - interim 6.07 6.12 6.12
Distribution per share (cents) - clean out prior to rights issue - - 4.57
Distribution per share (cents) - final (declared after 30 June) - - 1.38
Distribution per share (cents) - full year 6.07 6.12 12.07
Unaudited Unaudited
as at as at Audited
31 December 31 December as at
2017 2016 30 June 2017
CONSOLIDATED STATEMENT OF FINANCIAL POSITION US$ US$ US$
Assets
Non-current assets
Total property related investments 592,446,601 328,412,764 507,611,637
Fair value of property portfolio 390,495,401 253,379,135 345,850,499
Straight-line rental income accrual 6,529,572 5,482,393 5,971,837
Investment in associates 153,874,863 46,899,736 89,049,264
Investment in listed shares: Available-for-sale 3,819,877 - -
Other financial assets 37,726,888 22,651,500 66,740,037
Property, plant and equipment 2,182,894 1,608,312 1,932,521
Intangible assets 5,685,825 5,432,779 5,692,190
Related party loans 14,599,446 516,673 12,722,604
Deferred tax 5,978,719 7,626,077 6,174,482
Total non-current assets 620,893,485 343,596,605 534,133,434
Current assets
Trade and other receivables 18,884,790 14,064,681 18,656,708
VAT 10,143,975 4,888,201 7,259,812
Current tax receivable 559,046 - 438,831
Financial instruments 66,363 - -
Cash and cash equivalents 21,206,118 3,428,779 24,666,676
Total current assets 50,860,292 22,381,661 51,022,027
Total assets 671,753,777 365,978,266 585,155,461
Equity and liabilities
Total equity attributable to equity holders
Share capital 319,978,513 188,352,466 319,978,513
Foreign currency translation reserve 2,699,764 (55,083) 1,063,721
Antecedent dividend reserve - 897,264 1,260,656
Retained profit/(loss) 8,302,760 (6,618,586) (7,578,171)
Total equity attributable to equity holders 330,981,037 182,576,061 314,724,719
Liabilities
Non-current liabilities
Preference shares: Non-redeemable 12,840,000 - 12,840,000
Interest-bearing borrowings 261,511,696 109,487,099 187,447,310
Secured finance leases 154,576 199,446 171,247
Deferred tax 1,140,972 748,349 898,773
Total non-current liabilities 275,647,244 110,434,894 201,357,330
Current liabilities
Interest-bearing borrowings 50,606,637 60,470,610 47,959,452
Secured finance leases 43,506 44,169 44,566
Trade and other payables 12,526,562 8,840,021 19,201,998
Related party loans 1,365,000 1,365,000 1,365,000
Withholding tax payable 52,873 65,865 45,460
Current tax payable - 1,158,030 -
Financial instruments - 71,159 18,724
Cash and cash equivalents 530,918 952,457 438,212
Total current liabilities 65,125,496 72,967,311 69,073,412
Total liabilities 340,772,740 183,402,205 270,430,742
Total equity and liabilities 671,753,777 365,978,266 585,155,461
Loan to value 49.19% 50.95% 41.60%
Net asset value per share (cents) 158.73 163.32 150.94
Net asset value per share (excluding deferred taxation) (cents) 156.41 157.17 148.41
Foreign
currency Antecedent Total
Share translation dividend Retained equity
CONSOLIDATED STATEMENT OF capital reserve reserve earnings holders
CHANGES IN EQUITY US$ US$ US$ US$ US$
Balance as at 1 July 2016 171,995,297 (1,898) 635,547 (9,256,498) 163,372,448
Profit for the period - - - 7,621,793 7,621,793
Dividends paid - - (635,547) (4,983,881) (5,619,428)
Foreign currency translation reserve movement - (53,185) - - (53,185)
Shares issued 18,274,078 - - - 18,274,078
Share issue expenses (1,019,645) - - - (1,019,645)
Transfer from share issues (897,264) - 897,264 - -
Balance as at 31 December 2016 188,352,466 (55,083) 897,264 (6,618,586) 182,576,061
Profit for the period - - - 10,109,892 10,109,892
Dividends paid - - (960,233) (11,069,477) (12,029,710)
Foreign currency translation reserve movement - 1,118,804 - - 1,118,804
Shares issued 137,260,679 - - - 137,260,679
Share issue expenses (4,311,007) - - - (4,311,007)
Transfer from share issues (1,323,625) - 1,323,625 - -
Balance as at 31 July 2017 319,978,513 1,063,721 1,260,656 (7,578,171) 314,724,719
Unaudited for the six months ended
Profit for the period - - - 17,497,876 17,497,876
Dividends paid - - (1,260,656) (1,616,945) (2,877,601)
Foreign currency translation reserve movement - 1,636,043 - - 1,636,043
Shares issued - - - - -
Share issue expenses - - - - -
Transfer from share issues - - - - -
Balance as at 31 December 2017 319,978,513 2,699,764 - 8,302,760 330,981,037
Unaudited Unaudited
for the six for the six Audited
months ended months ended for the year
31 December 31 December ended
2017 2016 30 June 2017
CONSOLIDATED STATEMENT OF CASH FLOWS US$ US$ US$
Cash generated from operations 10,687,867 7,121,524 16,835,120
Changes in working capital:
Trade and other receivables 2,926,523 (853,798) 8,459,768
Trade debtors (1,393,954) 572,432 988,805
VAT 1,478,940 (536,915) (2,908,526)
Vendor adjustment account 5,801,868 109,074 1,023,269
Pre-paid expenses 5,107,712 (683,387) 1,193,664
Other receivables (8,068,043) (315,002) 8,162,556
Trade and other payables (8,521,143) (6,189,134) (9,939,611)
Trade creditors (5,226,152) (2,835,639) 3,313,885
Income received in advance (2,534,516) (2,363,076) (470,006)
Other payables (760,475) (990,419) (12,783,490)
Cash generated from operations 5,093,247 78,592 15,355,278
Interest received 3,848,553 304,952 1,993,516
Finance costs (7,208,060) (3,578,606) (9,685,296)
Taxation paid (112,802) (760,602) (1,479,815)
Dividends paid (1,933,598) (4,722,163) (17,649,138)
Net cash (utilised in)/generated from operating activities (312,660) (8,677,827) (11,465,455)
Acquisition of investment property (40,876,631) (9,589,791) (82,561,907)
VAT on acquisition of investment property (3,281,649) - (4,553,568)
Acquisition of listed equities (3,819,877) - -
Acquisition of property, plant and equipment (365,416) (1,162,696) (1,011,886)
Acquisition of intangible assets - (5,851) (10,374)
Net cash outflow on acquisition of subsidiaries and associates (59,870,651) - (24,118,753)
Dividends received from associates 3,972,193 1,648,469 3,573,077
Loans raised/(advanced to) property investments and related parties 27,131,183 (22,187,514) (68,533,142)
Net cash utilised in investing activities (77,110,848) (31,297,383) (177,216,553)
Proceeds from the issue of shares - 17,376,816 133,439,348
Share issue expenses - (1,019,645) (5,330,652)
Proceeds from the issue of preference shares - - 12,840,000
Proceeds from interest-bearing borrowings 123,157,329 35,575,980 168,983,007
Settlement of interest-bearing borrowings (49,287,085) (27,253,440) (114,793,052)
Net cash generated from financing activities 73,870,244 24,679,711 195,138,651
Net movement in cash and cash equivalents (3,553,264) (15,295,499) 6,456,643
Cash at the beginning of the year 24,228,464 17,771,821 17,771,821
Total cash at the end of the year 20,675,200 2,476,322 24,228,464
Represented by:
Cash at bank 21,206,118 3,428,779 24,666,676
Bank overdraft (530,918) (952,457) (438,212)
Total cash at the end of the year 20,675,200 2,476,322 24,228,464
Unaudited Unaudited
for the for the
six months six months Audited
ended ended for the
31 December 31 December year ended
2017 2016 30 June 2017
FUNDS FROM OPERATIONS ("FFO") US$ US$ US$
Operating profit 20,396,808 9,409,482 23,586,056
Adjusted for non-cash items: - - -
Property fair value adjustment included in income from associate (3,380,000) (901,596) (2,394,834)
Depreciation and amortisation 121,408 179,706 205,275
Straight-line rental income accrual (610,120) (775,620) (1,132,143)
Tax credits utilised 1,081,454 - -
Non-operating income/cost - - -
Realised foreign exchange gains (75,880) 1,881,302 1,999,182
Interest income 3,848,553 304,952 1,993,516
Interest expense (8,797,687) (4,263,606) (10,970,561)
Taxation - (930,379) (32,326)
Total funds from operations 12,584,536 4,904,241 13,254,165
Weighted average number of shares 208,514,261 101,909,223 110,435,576
FFO per share 6.04 4.81 12.00
CONDENSED
CONSOLIDATED
SEGMENTAL ANALYSIS Botswana Morocco Mozambique Zambia Kenya Mauritius Total
Geographical location
31 December 2017 - US$
Gross rental income - 4,515,274 7,184,975 - 590,430 2,877,401 15,168,079
Straight-line rental income
accrual - 77,974 483,731 - - 48,415 610,120
Pre-transfer rental accrued - - 1,620,000 - - - 1,620,000
Property operating expenses - (2,026,510) (594,804) - (17,836) (100,465) (2,739,613)
Income from associates - - - 6,392,330 1,238,364 1,289,931 8,920,625
Net property rental and
related income - 2,566,738 8,693,902 6,392,330 1,810,958 4,115,282 23,579,211
Fair value adjustment - - 2,050,299 - 540,000 210,000 2,800,299
Investment property vehicles 3,819,877 110,675,129 205,020,005 123,915,410 28,124,098 120,892,082 592,446,601
Investment property at fair
value - 108,075,749 201,620,443 - 21,525,293 59,273,916 390,495,401
Straight-line rental income
accrual - 2,599,380 3,399,562 - - 530,630 6,529,572
Investment in associates - - - 86,188,522 6,598,805 61,087,536 153,874,863
Investment in listed shares:
Available-for-sale 3,819,877 - - - - - 3,819,877
Other financial assets - - - 37,726,888 - - 37,726,888
Corporate
Listed Light accom-
equities Hospitality Retail Office industrial modation Total
Type of property
31 December 2017 - US$
Gross rental income - 1,939,492 6,032,173 5,817,255 1,048,235 330,925 15,168,079
Straight-line rental income
accrual - - 221,348 388,772 - - 610,120
Pre-transfer rental accrued - - - - - 1,620,000 1,620,000
Property operating expenses - - (2,280,900) (328,430) (29,622) (100,661) (2,739,613)
Income from associates - 1,289,931 7,630,694 - - - 8,920,625
Net property rental and
related income - 3,229,423 11,603,315 5,877,597 1,018,613 1,850,264 23,579,211
Fair value adjustment on
investment property - - (470,000) 2,730,299 540,000 - 2,800,299
Investment property vehicles 3,819,877 106,727,750 276,136,693 143,436,989 28,025,293 34,300,000 592,446,601
Investment property at fair
value - 45,367,655 143,194,859 139,607,594 28,025,293 34,300,000 390,495,401
Straight-line rental income
accrual - - 2,700,177 3,829,395 - - 6,529,572
Investment in associates - 61,360,095 92,514,768 - - - 153,874,863
Investment in listed shares:
Available-for-sale 3,819,877 - - - - - 3,819,877
Other financial assets - - 37,726,889 - - - 37,726,888
GOING CONCERN
Having considered the Group's budget and cash flow, the directors are of the opinion that the Group has adequate resources to
continue operating for the foreseeable future and that it is appropriate to adopt the going-concern basis in preparing the Group's
financial statements. The directors have satisfied themselves that the Group is in a sound financial position and that it has access
to sufficient borrowing facilities to meet its foreseeable cash requirements.
NOTES
The Group is required to publish interim reports in accordance with the Listing Rule 12.19 of the SEM. Accordingly, this announcement
presents the financial results of the Group in respect of the three and six-month period from 1 July 2017 to 31 December 2017.
The accounting policies which have been applied are consistent with those used in the preparation of the audited financial
statements for the year ended 30 June 2017.
The financial statements have been prepared in accordance with the measurement and recognition requirements of IFRS, the
requirements of IAS 34: Interim Financial Reporting, the SEM Listing Rules, the JSE Listings Requirements, the SAICA Financial
Reporting Guides as issued by the Accounting Practices Committee, the Financial Reporting Pronouncements as issued by the
Financial Reporting Accountants Council and the Securities Act of Mauritius 2005.
These financial statements have not been reviewed or reported on by the Group's external auditors. These financial statements were
approved by the Board on 7 February 2018. Copies of the financial statements and the statement of direct and indirect interests of
each officer of the Group, pursuant to rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules of Mauritius
2007, are available free of charge, upon request at the Company's registered address. Contact person: Mr Sheetal Bissumray.
Declaration of final dividend
Shareholders are advised that dividend number 8 of US$6.07000 cents per share for the six months ended 31 December 2017 has
been approved and declared by the Board. The source of the cash dividend is from rental income and cum dividend reserve.
Salient dates and times
For shareholders on the Mauritian Register
Announcement of results and cash dividend on JSE and SEM 8 February 2018
Announcement of US$ to Rand conversion rate released on SEM website by no later than 13:00 20 February 2018
Last date to trade cum dividend 27 February 2018
Shares trade ex-dividend 28 February 2018
Record date of dividend on SEM 2 March 2018
Payment date of dividend 29 March 2018
Notes
1. All dates and times quoted above are local dates and times in Mauritius. The above dates and times are subject to change. Any
changes will be released on the SEM website.
2. No dematerialisation or rematerialisation of share may take place between 28 February 2018 and 2 March 2018, both days
inclusive.
3. No transfers of shares between sub-registers in Mauritius and South Africa may take place between 20 February 2018 and
2 March 2018, both days inclusive.
For shareholders on the South African Register
Announcement of results and cash dividend in JSE and SEM 8 February 2018
Announcement of US$ to Rand conversion rate released on SENS by no later than 11:00 20 February 2018
Last date to trade cum dividend 27 February 2018
Shares trade ex dividend 28 February 2018
Record date of dividend on SEM 2 March 2018
Payment date of dividend 29 March 2018
Notes
1. All dates and times quoted above are local dates and times in South Africa. The above dates and times are subject to change.
Any changes will be released on SENS.
2. No dematerialisation or rematerialisation of share certificates may take place between Monday, 28 February 2018 and 2 March
2018, both days inclusive.
3. No transfer of shares between sub-registers in Mauritius and South Africa may take place between 20 February 2018 and
2 March 2018, both days inclusive.
4. Shareholders on the South African sub-register will receive dividends in South African Rand, based on the exchange rate
to be obtained by the Company on or before 20 February 2018. A further announcement in this regard will be made on
20 February 2018.
In terms of the JSE Listings Requirements regarding Dividends Tax, the following information is only of direct application to
shareholders on the South African share register, as the dividend is regarded as a foreign dividend for shareholders on the South
African register:
- the final dividend is subject to South African Dividends Tax;
- the local dividend tax rate is 20%;
- there is no withholding tax payable in Mauritius;
- the number of ordinary shares in issue is 208,514,261; and
- the Mauritian income tax reference number of the Company is 27331528.
By order of the board
8 February 2018
JSE sponsor and corporate advisor to Grit
PSG CAPITAL
SEM Authorised Representative and Sponsor to Grit
Perigeum Capital
Directors: Sandile Nomvete (chairman), Bronwyn Corbett*, Peter Todd (lead independent),
Chandra Gujadhur, Ian Macleod, Leon van de Moortele*, Nomzamo Radebe, Catherine Mcllraith,
Matshepo More and Maheshwar Doorgakant(#)
(*executive director)
((#)alternate to Mr Gujadhur)
Company secretary: Intercontinental Fund Services Limited
Registered address: Level 5, Alexander House, 35 Cybercity, Ebène, 72201, Mauritius
Transfer secretary (South Africa): Computershare Investor Services Proprietary Limited
Registrar and transfer agent (Mauritius): Intercontinental Secretarial Services Limited
Corporate advisor and JSE sponsor: PSG Capital Proprietary Limited
Sponsoring Broker: Axys-Stockbrokering Limited
SEM authorised representative and sponsor: Perigeum Capital Ltd
Results released to market
8 February 2018
This communiqué is issued pursuant to SEM Listing Rules 11.3 and 12.20 and section 88 of the Securities Act of Mauritius
2005 and the JSE Listings Requirements. The board accepts full responsibility for the accuracy of the information contained
in these abridged unaudited consolidated financial statements and this communiqué.
Date: 08/02/2018 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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