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Financial effects of the acquisition of Tembisa Mega Mart and Old Mutual and withdrawal of cautionary
Delta Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
Share code: DLT ISIN: ZAE000172052
("Delta" or “the Company”)
REIT status approved
FINANCIAL EFFECTS OF THE ACQUISITION OF TEMBISA MEGA MART AND OLD
MUTUAL AND WITHDRAWAL OF CAUTIONARY
1.1 Introduction
Holders of Delta linked units (“Delta Linked Unitholders”) are
referred to the announcements released on SENS by the Company
on 26 March 2014 and 22 April 2014 (“Cautionary
Announcements”) relating to the acquisition of the turnkey
development of the letting enterprise and property commonly
known as Tembisa Mega Mart and the acquisition of the letting
enterprises and properties commonly known as:
OMC Durban and the Marine, respectively (collectively, “the
Acquisitions”).
1.2 Forecast financial effects of the Acquisitions
The forecast financial effects of the Acquisitions
(“Forecasts”), including the assumptions on which they are
based and the financial information from which they are
prepared, are the responsibility of the board of directors of
Delta. The Forecasts have not been reviewed or reported on by
the independent reporting accountants.
The Forecasts presented in the tables below have been prepared
in accordance with Delta’s accounting policies and in
compliance with International Financial Reporting Standards.
The Forecasts have been prepared with effect from 1 September
2014 (“the Effective Date”), and include forecast results for
the 6 months ending 28 February 2015 and the 12 months ending
28 February 2016.
The effects of the Acquisitions on Delta’s net asset value and
net tangible asset value per Delta linked unit are not
material and accordingly have not been disclosed.
Summarised forecast in respect of the acquisition of Tembisa
Mega Mart:
Forecast Forecast
6 months ending 12 months ending
28 February 2015 28 February 2016
R R
Rental income 12 835 577 27 410 655
Straight-line rental income
accrual 2 836 726 3 934 610
Total revenue 15 672 302 31 345 265
Net operating profit before
finance charges 12 918 690 25 606 546
Net operating profit after
finance charges 7 982 139 15 733 444
Net profit after tax 2 836 726 3 934 610
Distributable earnings 5 145 413 11 798 833
attributable to linked
unitholders
Notes:
1. The forecast information for the 6 months ending 28 February 2015
has been calculated from the anticipated effective date of the
acquisition being 1 September 2014.
2. Contracted revenue is based on existing lease agreements.
Uncontracted revenue in respect of this property amounts to 0% for
both the years ending 28 February 2015 and 29 February 2016.
3. Net operating profit after finance charges includes asset management
fees, property management fees and transaction costs.
4. Distributable income excludes any antecedent interest from the issue
of new linked units.
Summarised forecast in respect of the acquisition of OMC
Durban:
Forecast Forecast
6 months ending 12 months ending
28 February 2015 29 February 2016
R R
Rental income 25 641 427 49 924 242
Straight-line rental income
accrual (29 133) 1 287 139
Total revenue 25 612 293 51 211 381
Net operating profit before
finance charges 15 104 335 28 448 412
Net operating profit after
finance charges 9 823 536 17 886 814
Net profit after tax (29 133) 1 287 139
Distributable earnings 9 852 670 16 599 674
attributable to linked
Forecast Forecast
6 months ending 12 months ending
28 February 2015 29 February 2016
R R
unitholders
Notes:
1. The forecast information for the 6 months ending 28 February 2015
has been calculated from the anticipated effective date of the
acquisition being 1 September 2014.
2. Contracted revenue is based on existing lease agreements.
Uncontracted revenue in respect of this property amounts to 0% for
the year ending 28 February 2015 and 7% for the year ending 29
February 2016.
3. Net operating profit after finance charges includes asset management
fees, property management fees and transaction costs.
4. Distributable income excludes any antecedent interest from the issue
of new linked units.
Summarised forecast in respect of the acquisition of the
Marine:
Forecast Forecast
6 months ending 12 months ending
28 February 2015 29 February 2016
R R
Rental income 16 262 296 31 084 805
Straight-line rental income
accrual (422 533) 598 304
Total revenue 15 839 762 31 683 109
Net operating profit before
finance charges 10 596 611 20 433 679
Net operating profit after
finance charges 6 901 548 13 043 553
Net profit after tax (422 533) 598 304
Distributable earnings 7 324 081 12 445 249
attributable to linked
unitholders
Notes:
1. The forecast information for the 6 months ending 28 February 2015
has been calculated from the anticipated effective date of the
acquisition, 1 September 2014.
2. Contracted revenue is based on existing lease agreements.
Uncontracted revenue in respect of this property amounts to 0% for
the year ending 28 February 2015 and 9% for the year ending 29
February 2016.
3. Net operating profit after finance charges includes asset
management fees, property management fees and transaction costs.
4. Distributable income excludes any antecedent interest from the
issue of new linked units.
Summarised consolidated forecast in respect of the
Acquisitions:
Forecast Forecast
12 months ending 12 months ending
28 February 2015 29 February 2016
R R
Rental income 54 739 299 108 419 701
Straight-line rental income
accrual 2 385 059 5 820 054
Total revenue 57 124 358 114 239 755
Net operating profit before
finance charges 38 619 637 74 488 637
Net operating profit after
finance charges 24 707 223 46 663 810
Net profit after tax 2 385 059 5 820 054
Distributable earnings 22 322 164 40 843 757
attributable to linked
unitholders
Notes:
1. The forecast information for the 6 months ending 28 February 2015
has been calculated from the anticipated effective date of the
Acquisitions being 1 September 2014.
2. Contracted revenue is based on existing lease agreements.
Uncontracted revenue in respect of this property amounts to 0% for
the year ending 28 February 2015 and 6% for the year ending 29
February 2016.
3. Net operating profit after finance charges includes asset
management fees, property management fees and transaction costs.
4. Distributable income excludes any antecedent interest from the
issue of new linked units.
1.3 Withdrawal of the cautionary
Having regard to the information set out above, the Cautionary
Announcements in respect of the Forecasts are hereby
withdrawn.
4 June 2014
Johannesburg
Investment bank and sponsor
Nedbank Capital
Date: 04/06/2014 11:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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