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Preliminary summarised audited consolidated financial statements for the year ended 30 June 2014
Resilient Property Income Fund Limited
Incorporated in the Republic of South Africa
Reg no 2002/016851/06
Share code RES
ISIN ZAE000043642
(“Resilient” or “the group”)
(Approved as a REIT by the JSE)
PRELIMINARY SUMMARISED AUDITED CONSOLIDATED
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
DIRECTORS’ REPORT
1 CAPITAL STRUCTURE
The conversion of the company’s linked unit capital structure to an all
share structure was approved on 30 June 2014. The company’s capital
structure is now in line with the internationally recognised Real Estate
Investment Trust (“REIT”) capital structures.
2 NATURE OF THE BUSINESS
Resilient is an internally asset managed REIT listed on the JSE Limited.
Its strategy is to invest in dominant regional retail centres with a
minimum of three anchor tenants and let predominantly to national
retailers. It further invests in listed and offshore property related
assets.
3 DISTRIBUTABLE EARNINGS AND COMMENTARY ON RESULTS
The board has declared a dividend of 168,35 cents per share for the six
months ended June 2014. This, combined with the 159,59 cents in respect of
the interim period, represents an increase of 20,94% compared to the
comparable prior period. Despite the subdued growth in the South African
economy and the group’s exposure to areas negatively affected by the
protracted strike by platinum miners, the property portfolio performed
ahead of budget. Resilient again benefited from the strong performance of
its listed holdings, particularly the offshore holdings where dividends
benefited from the depreciation of the Rand.
National retail sales have held up surprisingly well under the current
challenging economic environment. Widely varying performances were
achieved in provinces where Resilient is represented. North West province
again achieved negative nominal growth due to the impact of the strike
action on its mining sector. In KwaZulu-Natal, Boardwalk Inkwazi (Richards
Bay) and Murchison Mall (Ladysmith) achieved disappointing growth.
Boardwalk Inkwazi was affected by the closure of the Bayside aluminium
smelter and Murchison Mall is undergoing refurbishment which has disrupted
pedestrian flows. Gauteng achieved the highest growth largely as a result
of the successful extension of The Grove where the footcount increased by
over 40% and the trading densities of tenants in the original mall
increased by 19,4%.
The comparable sales growth per province is set out below:
North West (0,3%)
KwaZulu-Natal 4,2%
Eastern Cape 7,9%
Limpopo 8,7%
Northern Cape 9,6%
Mpumalanga 11,7%
Gauteng 15,9%
Following the resolution of the platinum miners’ strike, retail sales in
the North West province have recovered sharply which bodes well for the
June 2015 financial year. The Northern Cape, particularly Village Mall
Kathu, benefited from the continued growth of mining activity in its
target market. Resilient’s intensive management of its malls, including
its focus on tenant profile, refurbishment and appropriate extensions,
supports continued above market performance of the portfolio as a whole.
Turnover rental of R24,7 million was received against a budget of R14,1
million.
4 PROPERTY ACQUISITIONS
The Galleria and Arbour Crossing Resilient increased its interest in The
Galleria and Arbour Crossing from 10% to 75% at a cost of R1 389 million
and a yield of 8% effective from 17 October 2013. At 30 June 2013 The
Galleria (an 88 443m2 GLA mall) and Arbour Crossing (a 39 786m2 GLA value
centre) had vacancies of 13,3% and 8,7% respectively. These vacancies have
since reduced to 8,5% and 6,9% respectively. As a result of progress
achieved with letting, management decided not to introduce a gymnasium to
the mall. Although this would have reduced the vacancy at The Galleria to
below the targeted 5% level, flexibility to introduce further national and
international clothing retailers would have been compromised.
Tubatse Crossing Resilient increased its interest in this mall from 90% to
96,5% at a cost of R39,8 million.
Jubilee Mall Resilient agreed to acquire Jubilee Mall in Hammanskraal at a
cost of R975 million representing a forward yield of 7,5% with effect from
1 September 2014. The mall has a GLA of 52 577m2 with five anchors being
Edgars, Game, Pick n Pay, Spar and Woolworths. It further includes all
major national clothing retailers. The mall dominates the substantial
Hammanskraal region and strong trading densities are achieved.
The purchase price will be discharged by Resilient issuing 6 578 947
shares at a price of R57,00 per share with the balance in cash. The
transaction is unconditional.
Irene Mall Subsequent to the year end, Resilient acquired Irene Mall at a
capitalisation rate of 7,75%. The cost of R665 million escalates at 7,5%
from 1 January 2014 to the date of transfer. Irene Mall currently has a
GLA of 30 000m2 and is anchored by Pick n Pay and a small Woolworths
store. The centre has a strong entertainment offering including six Ster
Kinekor cinemas and a variety of restaurants. In addition, two portions of
adjacent land zoned for retail development is being acquired for a total
of R135 million. Irene is an upmarket area currently undergoing rapid
growth which should continue as the road infrastructure is further
developed. Resilient’s long term intention is to extend the mall to a full
regional mall of up to 80 000m2 GLA.
The transactions are expected to be finalised by September 2014.
5 PROPERTY DEVELOPMENTS
Secunda Mall The mall opened on schedule in October 2013 and achieved its
budgeted yield of 9%. Retailers reported trading figures well ahead of
their projections. Following the introduction of Dis-Chem and Food Lover’s
Market (scheduled to open in September 2014) the mall will have a GLA of
59 694m2. The mall is anchored by Checkers Hypermarket, Edgars, Game, Pick
n Pay and Woolworths and includes all major national clothing retailers.
Resilient has a 40% interest in this mall with Sasol Pension Fund and
local consortiums owning 40% and 20% respectively.
Soshanguve Crossing This 34 513m2 GLA mall anchored by Edgars, Game,
Shoprite and Spar opened in May 2014. Retailers have reported strong
trading performance. Resilient has a 55% interest in this mall that
achieved a yield of 8,5% against the budgeted 8%. Resilient’s cost was
R290 million.
6 PROPERTY EXTENSIONS
Circus Triangle The final extension to this mall to accommodate Edgars and
Game and the expansion of Foschini, Shoprite, Truworths and Woolworths is
on schedule for completion in October 2014 at a cost of R170 million. The
extension is projected to achieve an 8% return.
The Grove The 11 600m2 GLA extension to The Grove to accommodate Ster
Kinekor (eight screens including two prestige cinemas and iMax), an ice
rink and a family entertainment centre opened during the year. As a result
of a substantial and unbudgeted increase in parking income, a yield of
7,4% was achieved against the 6% initially budgeted. An additional
10 000m2 of retail rights were approved by the authorities in December
2013 and Resilient is now letting the vacant stores constructed on the
upper level.
Jabulani Mall The 2 350m2 GLA extension to Jabulani Mall to accommodate
Food Lover’s Market and Shoprite Liquor opened in November 2013 and the
projected yield of 11% was achieved.
Northam Plaza The 8 100m2 GLA extension to Northam Plaza to accommodate
Game opened on schedule and within budget at a yield of 8% in October
2013.
Village Mall Kathu The 7 300m2 GLA extension to accommodate Game and
additional national retailers opened in September 2013 within budget at
the forecast yield of 8%. A 1 450m2 Woolworths store will open in October
2014.
Rivonia Village The 2 200m2 GLA extension to accommodate Checkers opened
in November 2013. Excluding the income from an additional 64 parking bays,
the yield was 7%.
The board is evaluating major tenant driven extensions with a focus on
improving the entertainment offerings to five existing malls.
7 PROPERTY DISPOSALS
The properties sold to Fortress for R1 042 million transferred. The
transaction had an effective date of 1 July 2013.
8 RESILIENT AFRICA
The board has agreed to increase its capital commitment to this joint
venture for the development of properties in Nigeria to R1 billion.
Resilient has a 50,98% interest in Resilient Africa with Standard Bank and
Shoprite Checkers as its partners. In addition to the 12 819m2 GLA Delta
Mall under construction in Warri, Delta State, construction has commenced
on a 12 291m2 GLA mall in Owerri, Imo State. Negotiations are at various
stages on an additional seven sites with the target of commencing
construction on a further two developments by December 2014.
9 LISTED PORTFOLIO
Jun 2014 Jun 2013
Number Fair Number Fair
of units/ value of units/ value
Counter shares R’000 shares R’000
Capital (CPF) 208 340 000 2 229 238 153 850 000 1 636 964
Fortress B (FFB) 98 670 000 986 700 63 000 000 535 500
Nepi (NEP) 25 300 000 2 403 500 21 220 000 1 421 527
5 619 438 3 593 991
Rockcastle (ROC) 168 560 000 2 857 092* 60 775 000 817 423
8 476 530 4 411 414
* Rockcastle was treated as an associate (equity accounted) and was thus
not fair valued in the financial statements at June 2014.
The board’s policy is to hedge a maximum of 35% of its foreign currency
exposure to equity investments (Nepi and Rockcastle). At June 2014 USD98
million was hedged at R10,60.
Following a lengthy process and with the approval of the relevant
regulators and its unitholders, Capital Property Fund (a Collective
Investment Scheme in Property) converted to a corporate REIT and
simultaneously internalised its asset management, in consideration for
which Resilient now holds 70 754 717 Capital shares.
10 VACANCIES
As a result of the increased holdings in The Galleria and Arbour Crossing,
vacancies increased from 1,8% at June 2013 to 2,2% at June 2014. The
vacancies have, however, decreased from the 2,7% at December 2013.
11 FACILITIES AND INTEREST RATE DERIVATIVES
Resilient accepted 5-year loans of R825 million and R910 million from RMB
and Standard Bank respectively. The group further accepted a 3-year loan
of R600 million from Standard Bank. Resilient has a R4 billion DMTN
programme and the board’s intention remains to finance 50% of Resilient’s
borrowings on an unsecured basis. Following the R1 billion rights issue
concluded in May 2014 and the revaluation of assets at June 2014,
Resilient’s interest-bearing debt to asset ratio reduced from 34,6% at
December 2013 to 28,7% at June 2014. This is anticipated to increase to
approximately 32% following the transfer of Irene Mall and Jubilee Mall.
Average
Amount margin
Facility expiry R’million over Jibar
Jun 2015 650 1,15%
Jun 2016 275 1,22%
Jun 2017 2 976 1,59%
Jun 2018 1 584 1,57%
Jun 2019 2 747 1,53%
Jun 2020 553 1,44%
Jun 2021 400 1,75%
9 185 1,52%
Interest rate swap expiry Amount Average
R’million swap rate
Jun 2015 250 6,84%
Jun 2016 450 7,73%
Jun 2017 700 7,67%
Jun 2018 900 7,52%
Jun 2019 1 100 7,28%
Jun 2020 880 6,31%
Jun 2021 820 7,88%
Jun 2022 500 8,09%
5 600 7,39%
Amount Average
Interest rate cap expiry R’million cap rate
Jun 2018 400 5,90%
Jun 2019 200 7,38%
Jun 2020 300 7,54%
Jun 2021 300 7,92%
Jun 2022 - -
Jun 2023 200 7,99%
Jun 2024* 400 7,99%
1 800 7,36%
*A R200 million interest rate cap was entered into in July 2014.
Amount
Variable rate instruments R’000
Loans to BEE vehicles (614 259)
Loans to development partners (198 866)
Cash and cash equivalents (37 173)
Interest-bearing borrowings 6 957 487
Capital commitments contracted for 1 780 536
7 887 725
Total interest rate derivatives 7 400 000
Percentage hedged 93,8%
The all-in weighted average cost of funding of Resilient was 8,58% at June
2014 and the average hedge term was 4,8 years.
The information contained in note 11 and the “Property operations” section
of note 12 has been compiled using proportionate consolidation. This
results in Resilient accounting for its share of the assets and
liabilities of Resilient Africa and joint ventures (Arbour Crossing, The
Galleria and Mafikeng Mall).
12 SUMMARY OF FINANCIAL PERFORMANCE
Jun 2014 Dec 2013 Jun 2013 Dec 2012
* * #*
Distribution (cents per
share/linked unit) 168,35 159,59 136,23 134,93
Shares/units
in issue 312 569 839 293 339 070 289 544 070 285 744 070
Property operations
Net asset value R53,06 R44,36 R41,75 R34,51
Interest-bearing
debt to asset ratio** 28,7% 34,6% 26,8% 26,7%
Net property
expense ratio 12,2% 14,9% 14,2% 13,7%
Gross property
expense ratio 33,9% 34,9% 35,7% 34,9%
Consolidated
Net asset value R53,06 R44,36 R41,75 R33,92
Interest-bearing debt
to asset ratio** 28,2% 34,3% 26,5% 27,8%
Shares/units
in issue 312 569 839 293 339 070 289 544 070 274 933 259
*Net asset value includes total equity attributable to equity holders and
linked debentures.
**The interest-bearing debt to asset ratio is calculated by dividing total
interest-bearing borrowings adjusted for cash on hand by the total of
investments in property, listed securities and loans advanced. The
comparatives were adjusted to be compliant with best practice disclosure
for REITs.
#To comply with financial reporting requirements the group will account
for entities that do not form part of its operations, do not operate under
its operating policies and whose businesses, risk profiles and debt levels
are not comparable with its own. Disclosure under “Property operations”
excludes Eagle’s Eye Investments Proprietary Limited (“BEE SPV” or
“Eagle’s Eye”). On 27 June 2006 10 810 811 linked units were issued to BEE
SPV and Resilient is standing surety for the funding obligations of BEE
SPV in acquiring these units. In terms of IFRS the issue did not take
place and the essence of the transaction was that the BEE shareholders
received a right/option to acquire linked units in Resilient at a future
date at a predetermined price. As a consequence, the issue of linked units
has been eliminated in the preparation of the financial statements.
This BEE transaction matures in tranches. Due to the positive equity in
this scheme and the minimal residual risk resulting from Resilient’s
surety, the board has taken the view that the units are in issue and has
therefore reversed the effect of the option/right from the June 2013
financial statements and deconsolidated BEE SPV.
13 CONVERSION TO A REIT
The implications of the conversion to a REIT on financial reporting are
summarised below:
BEFORE AFTER
CONVERSION CONVERSION
Status Property Loan Stock Real Estate Investment
Company (“PLS”) Trust (“REIT”)
Applicable date Up to 30 June 2013, From 1 July 2013 - first
including the REIT distribution paid
distribution paid on on 3 March 2014
2 September 2013
Capital structure 1 debenture linked Ordinary shares with no
to 1 share par value (30 June 2014)
Distribution Debenture interest Taxable dividend
Declaration of Statement of Statement of changes
distribution comprehensive income: in equity:
Debenture interest Prior reporting period
Statement of financial dividend
position: Current period dividend:
Liability for linked Non-adjusting event
debenture interest after the reporting
at reporting date period
Deductibility of Debenture interest: Dividend: deductible
distribution for deductible (S24J of (S25BB of the Income
tax the Income Tax Act) Tax Act)
Capital gains
Tax (“CGT”) Applicable Exemption from CGT:
- disposal of immovable
property
- disposal of shares in
a REIT
- disposal of shares in
a property company if
the holding in that
company is 20% or
more
14 BROAD-BASED BLACK ECONOMIC EMPOWERMENT
Following repeated representations, particularly from the Thohoyandou
shareholders, Resilient agreed to the early termination of the Amber Peek
Proprietary Limited (“Amber Peek”) BBBEE initiative in December 2013. The
shareholders of Amber Peek are Aquarella Investments 553 Proprietary
Limited (26%), Celtic Rose Investments 10 Proprietary Limited (26%) and
The Siyakha Education Trust (“The Trust”) (48%). Aquarella Investments 553
Proprietary Limited is owned by 50 black business people from Thohoyandou
whilst Celtic Rose Investments 10 Proprietary Limited is owned by nine
black business people from Johannesburg. The Trust is a charitable trust
established for the promotion of black education and is a registered
public benefit organisation. Resilient’s consent was conditional on an
early termination fee of R54,4 million, being 10% of the proceeds.
The units were acquired by The Trust with finance provided by Resilient at
a price of R53,10 per Resilient linked unit. The fee received was fully
offset by the cost of interest rate cap premiums expensed. The first of
three tranches of the Eagle’s Eye BBBEE initiative matured. Eagle’s Eye
has shareholders comprising The Trust and three women groupings based in
Mthatha, Polokwane and Johannesburg, each with a 25% interest. The second
and third tranches mature in June 2015 and June 2016 respectively.
Following the approval by shareholders at the meeting held on 30 June
2014, Resilient is authorised to provide financial assistance to The Trust
for the purchase of up to R500 million of its shares.
15 RECONCILIATION BETWEEN STATEMENT OF COMPREHENSIVE INCOME AND DIVIDEND
DECLARED
Jun 2014
R’000
Recoveries and contractual rental revenue 1 281 705
Property operating expenses (430 846)
Income from investments 172 416
Dividends accrued 141 993
Management fees received from PFM 81 774
Underwriting fee received 2 500
Administrative expenses (100 781)
Termination fee received from Amber Peek 54 366
Foreign exchange gains 8 693
Distributable income from associate and joint ventures 138 014
Interest from loans 88 065
Interest on linked units issued cum distribution 29 286
Interest on borrowings (531 337)
Capitalised interest 59 441
Interest to linked debenture holders (468 140)
Minority interest 303
Tax effect of foreign exchange gains (1 241)
Dividend declared 526 211
The methodology applied in calculating the dividend is consistent with
that of the prior periods.
16 PROSPECTS
Distributions are forecast to increase by approximately 12% for the 2015
financial year. The forecast assumes exchange rates of R14,00 and R10,20
to the Euro and US Dollar respectively. The growth is further based on the
assumptions that a stable macro-economic environment will prevail, no
major corporate failures will occur and that tenants will be able to
absorb the recovery of rising utility costs and municipal rates. Budgeted
rental income was based on contractual escalations and market related
renewals. This forecast has not been audited or reviewed by Resilient’s
auditors.
By order of the board
Des de Beer Nick Hanekom
Managing director Financial director
Johannesburg - 5 August 2014
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Restated
Jun 2014 Jun 2013
R’000 R’000
ASSETS
Non-current assets 24 118 626 16 769 388
Investment property 11 996 729 9 561 158
Straight-lining of rental revenue adjustment 198 586 167 176
Investment property under development 630 272 1 196 124
Investment in and loans to associate
and joint ventures 4 320 508 166 571
Investments 5 619 438 4 411 414
Intangible asset - 26 422
Resilient Share Purchase Trust loans 610 728 480 774
Loans to employees to acquire Capital units - 144 661
Loans to BEE vehicles 614 259 448 765
Loans to development partners 128 106 166 323
Current assets 395 923 1 248 328
Investment property held for sale - 1 029 467
Straight-lining of rental revenue adjustment - 12 524
Resilient Share Purchase Trust loans 17 319 13 372
Loans to development partners 81 219 24 867
Trade and other receivables 234 268 166 504
Cash and cash equivalents 63 117 1 594
Total assets 24 514 549 18 017 716
EQUITY AND LIABILITIES
Total equity attributable to equity holders 16 584 164 10 698 505
Stated capital/share capital 5 594 555 2 895
Share premium - 3 031 257
Non-distributable reserves - 7 664 353
Currency translation reserve (122) -
Reserves/retained earnings 10 989 731 -
Minority interest 23 460 -
Total equity 16 607 624 10 698 505
Total liabilities 7 906 925 7 319 211
Non-current liabilities 6 977 067 5 658 281
Linked debentures - 1 389 812
Interest-bearing borrowings 6 228 510 3 717 699
Deferred tax 552 454 550 770
Loans from development partners 196 103 -
Current liabilities 929 858 1 660 930
Trade and other payables 268 527 260 797
Linked debenture interest payable - 394 446
Income tax payable 1 721 1 007
Interest-bearing borrowings 659 610 1 004 680
Total equity and liabilities 24 514 549 18 017 716
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Restated
for the for the
year six months
ended ended
Jun 2014 Jun 2013
Income statement R’000 R’000
Net rental and related revenue 869 745 399 596
Recoveries and contractual rental revenue 1 281 705 602 683
Straight-lining of rental revenue adjustment 18 886 11 464
Rental revenue 1 300 591 614 147
Property operating expenses (430 846) (214 551)
Income from investments 172 416 113 775
Fair value gain on investment property,
investments and currency derivatives 1 923 848 1 285 704
Fair value gain on investment property 878 691 755 679
Adjustment resulting from straight-lining
of rental revenue (18 886) (11 464)
Fair value gain on investments 1 071 396 541 489
Fair value loss on currency derivatives (7 353) -
Management fees received from PFM 81 774 42 821
Underwriting fee received 2 500 -
Administrative expenses (100 781) (46 713)
Deconsolidation of BEE SPV (refer note 12) - 6 733
Termination fee received from Amber Peek 54 366 -
Amortisation of intangible asset (26 422) -
Foreign exchange gains 8 693 -
Profit on sale of interest in subsidiaries 752 990 -
Goodwill on acquisition of interest
in joint venture 29 598 -
Income from associate and joint ventures 284 406 22 589
- distributable 138 014 6 135
- non-distributable 146 392 16 454
Profit before net finance costs 4 053 133 1 824 505
Net finance costs (725 398) (288 146)
Finance income 214 638 256 560
Interest from loans 88 065 38 694
Fair value adjustment on interest
rate derivatives 97 287 216 004
Interest on linked units issued cum distribution 29 286 1 862
Finance costs (940 036) (544 706)
Interest on borrowings (531 337) (182 935)
Capitalised interest 59 441 32 675
Interest to linked debenture holders (468 140) (394 446)
Profit before income tax 3 327 735 1 536 359
Income tax (2 660) 501 142
Profit for the period 3 325 075 2 037 501
Other comprehensive income net of tax
Items that may be reclassified
subsequently to profit or loss
Exchange differences on translation
of foreign operations (122) -
Total comprehensive income for the period 3 324 953 2 037 501
Profit for the period attributable to:
Equity holders of the company 3 325 378 2 037 501
Minority interest (303) -
3 325 075 2 037 501
Total comprehensive income for
the period attributable to:
Equity holders of the company 3 325 256 2 037 501
Minority interest (303) -
3 324 953 2 037 501
Basic earnings per share (cents) 1 097,65 703,69
Comparable basic earnings per share (cents) 1 252,17
Basic earnings per linked unit (cents) 839,92
RECONCILIATION OF PROFIT FOR THE PERIOD TO HEADLINE EARNINGS
Audited Restated
for the for the
year six months
ended ended
Jun 2014 Jun 2013
R’000 R’000
Basic earnings (shares) - profit for the
period attributable to equity holders 3 325 378 2 037 501
Adjusted for: (1 679 351) (1 494 393)
- fair value gain on investment property (859 805) (744 215)
- goodwill on acquisition of
interest in joint venture (29 598) -
- profit on sale of interest in subsidiaries (752 990) -
- fair value gain on investment property
of joint ventures (37 183) (4 506)
- income tax effect 225 (733 724)
- income tax effect - joint ventures - (11 948)
Headline earnings (shares) 1 646 027 543 108
Headline earnings per share (cents) 543,32 187,57
Comparable headline earnings per share (cents) 697,85
Headline earnings per linked unit (cents) 323,80
Basic earnings per share, basic earnings per linked unit, headline
earnings per share and headline earnings per linked unit are based on the
weighted average of 302 954 455 (Jun 2013: 289 544 070) shares/linked
units in issue during the period.
Resilient has no dilutionary instruments in issue.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity
Stated Currency Non- Re- attribu-
capital/ trans- distri- serves/ table
share Share lation butable retained to equity
capital premium reserve reserves earnings holders
Audited R’000 R’000 R’000 R’000 R’000 R’000
Balance at
Dec 2012 2 749 2 712 168 - 5 291 797 - 8 006 714
Issue of units 38 176 819 176 857
Recognition of
units issued
to BEE SPV
(refer note 12) 108 142 270 (2 585) 139 793
Derecognition of
BEE instrument
(refer note 12) 337 640 337 640
Total
comprehensive
income for
the period 2 037 501 2 037 501
Transfer to
non-distributable
reserves 2 037 501(2 037 501) -
Balance at
Jun 2013 2 895 3 031 257 - 7 664 353 -10 698 505
Issue of units 230 1 059 838 1 060 068
- 3 795 000:
13 Nov 2013 38 178 673 178 711
- 19 230 769:
19 May 2014 192 881 165 881 357
Exchange
differences on
translation of
foreign
operations (122) (122)
Total
comprehensive
income for
the year 3 325 378 3 325 378
Capitalisation
of linked
debentures 1 500 335 1 500 335
Transfer to
stated
capital 4 091 095 (4 091 095) -
Transfer from
non-distri-
butable
reserves (7 664 353) 7 664 353 -
Balance at
Jun 2014 5 594 555 - (122) - 10 989 731 16 584 164
SUMMARISED CONSOLIDATED STATEMENT OF CASH FLOWS
Restated
Audited for the
for the six
year months
ended ended
Jun 2014 Jun 2013
R’000 R’000
Cash (outflow)/inflow from operating activities (64 962) 23 165
Cash outflow from investing activities (3 239 133) (772 301)
Cash inflow from financing activities 3 365 618 749 607
Increase in cash and cash equivalents 61 523 471
Cash and cash equivalents at beginning of period 1 594 1 123
Cash and cash equivalents at end of period 63 117 1 594
Cash and cash equivalents consist of:
Current accounts 63 117 1 594
NOTES
1 PREPARATION, ACCOUNTING POLICIES AND AUDIT OPINION
The summarised audited consolidated financial statements have been
prepared in accordance with the requirements of the JSE Limited Listings
Requirements for preliminary reports and the requirements of the Companies
Act of South Africa applicable to summary financial statements. The
Listings Requirements require preliminary reports to be prepared in
accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards (IFRS), 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 in the preparation of the consolidated
financial statements, from which the summarised consolidated financial
statements were derived, are in terms of IFRS and are consistent with the
accounting policies applied in the preparation of the previous
consolidated financial statements, with the exception of the adoption of
new and revised standards which became effective during the year. The
restatement of the comparative information for June 2013 is the result of
the adoption of IFRS 11 Joint Arrangements which resulted in Resilient
accounting for its investment in Mafikeng Mall on an equity accounted
method as opposed to proportionately consolidating it.
This report was compiled under the supervision of Nick Hanekom CA(SA), the
financial director.
The directors are not aware of any matters or circumstances arising
subsequent to June 2014 that require any additional disclosure or
adjustment to the financial statements.
The auditors, Deloitte & Touche, have issued their opinion on the group’s
financial statements for the year ended June 2014. The audit was conducted
in accordance with International Standards on Auditing. They have issued
an unmodified audit opinion. These preliminary summarised consolidated
financial statements have been derived from the group financial statements
and are consistent, in all material respects, with the group financial
statements. A copy of their audit report is available for inspection at
Resilient’s registered address. This preliminary report has been audited
by Deloitte & Touche and an unmodified audit opinion has been issued. The
auditor’s report does not necessarily report on all of the information
contained in this announcement. 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 that report together with the
accompanying financial information from Resilient’s registered address.
2 LEASE EXPIRY PROFILE (UNAUDITED)
Based on
Based on contractual
rentable rental
Lease expiry area revenue
Vacant 2,2%
Jun 2015 16,8% 18,8%
Jun 2016 12,4% 13,8%
Jun 2017 9,1% 11,1%
Jun 2018 15,1% 16,7%
Jun 2019 13,4% 16,5%
> Jun 2019 31,0% 23,1%
100,0% 100,0%
3 SEGMENTAL ANALYSIS
Audited Restated
for the for the
year six months
ended ended
Jun 2014 Jun 2013
R’000 R’000
Rental revenue
Retail 1 300 591 614 147
Profit before net finance costs
Retail 1 860 774 1 166 400
Corporate 2 192 359 658 105
4 053 133 1 824 505
4 PAYMENT OF FINAL DIVIDEND
The board has approved and notice is hereby given of a final dividend of
168,35 cents per share for the six months ended 30 June 2014.
The dividend is payable to Resilient shareholders in accordance with the
timetable set out below:
Last date to trade cum dividend Friday, 22 August 2014
Shares trade ex dividend Monday, 25 August 2014
Record date Friday, 29 August 2014
Payment date Monday, 1 September 2014
Share certificates may not be dematerialised or rematerialised between
Monday, 25 August 2014 and Friday, 29 August 2014, both days inclusive.
In respect of dematerialised shareholders, the dividend will be
transferred to the CSDP accounts/broker accounts on Monday, 1 September
2014. Certificated shareholders’ dividend payments will be posted on or
about Monday, 1 September 2014.
An announcement informing shareholders of the tax treatment of the
dividend will be released separately on SENS.
Directors
JJ Njeke (chairman); Des de Beer*; Thembi Chagonda; Andries de Lange*;
Marthin Greyling; Nick Hanekom*; Bryan Hopkins; Johann Kriek*; Spiro
Noussis; Umsha Reddy; Barry van Wyk (* executive director)
Changes to the board of directors
There were no changes to the board of directors since 5 February 2014, the
date of the previous results announcement.
Company secretary
Rajeshree Sookdeyu
Registered address
4th Floor Rivonia Village, Rivonia Boulevard, Rivonia, 2191
Transfer secretaries
Link Market Services South Africa Proprietary Limited
13th Floor, Rennie House, 19 Ameshoff Street, Braamfontein, 2001
Sponsor
Java Capital
Date: 05/08/2014 02:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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