Wrap Text
Unaudited Condensed Consolidated interim results
for the six months ended 31 March 2021
ARROWHEAD PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2007/032604/06)
JSE share code: AHA ISIN: ZAE000275491
JSE share code: AHB ISIN: ZAE000275509
(Approved as a REIT by the JSE)
("Arrowhead" or "the Company" or "the Group")
Short-Form Announcement
Unaudited Condensed Consolidated
INTERIM RESULTS
for the six months ended 31 March 2021
Highlights
- 57% increase in distributable earnings per B share for the 6-month period ended 31 March 2021 compared to the previous
6-month period ended 30 September 2020
- 20 assets disposed of and transferred during the six months at a book and sales value of R498 million. A further 20 properties
of R647 million are held for sale, the majority of which are expected to transfer during the remainder of the 2021 financial year
- Active investment in solar power plants - 7.3 megawatt installed with a further 3.6 megawatt currently under construction. As
at the end of March 2021, Arrowhead's energy generation stood at 4.7% of total energy consumption
- Overall tenant retention and re-letting of 85%
- Group Loan-to-Value of 39.8% (41.4% including derivatives)
- Rental collections stabilised to pre-COVID-19 levels. Rental relief reduced from R77 million in the 6-month period ending
30 September 2020 to R5 million for the 6-month period ending 31 March 2021
- Improved bank covenant terms
- B-share price increased by 108% from R1.30 at 30 September 2020 to R2.70 at 31 March 2021 after paying a full year 2020
dividend per B share of 32.99 cents in the same period
% Increase/
R'000 31 March 2021 31 March 2020 (decrease)
Revenue (excluding straight line rental income) 989 091 1 173 524 (16%)
Basic earnings (loss) per combined shares in issue (cents) 42.07 (10.89) 486%
Basic and diluted earnings (loss) per combined shares in issue (cents) 41.65 (10.89) 482%
Headline earnings (loss) per combined shares in issue (cents) 42.38 (7.54) 662%
Headline diluted earnings (loss) per combined shares in issue (cents) 41.96 (7.54) 656%
Net asset value per A share at reporting date (cents) 923 1 003 (8%)
Net asset value per B share at reporting date (cents) 635 679 (6%)
Distributable income per A share (cents) for the 6 months ended 31 March 58.59 56.77 3%
Distributable income per B share (cents) for the 6 months ended 31 March 23.19 30.65 (24%)
Nature of the business
Arrowhead is a diversified South African Real Estate Investment Trust ("REIT") focused on creating long-term shareholder value.
Arrowhead holds a diverse portfolio of retail, office and industrial properties valued at R9.3 billion. The average value per
property held by the Group (excluding Indluplace) at 31 March 2021, was R75.9 million (R68.0 million at 30 September 2020).
At 31 March 2021, Arrowhead held a 60.0% interest (2020: 60.0%) in its subsidiary, Indluplace Properties Limited ("Indluplace"),
which owns a portfolio of residential properties.
In addition, Arrowhead held an interest of 8.6% (2020: 8.6%) in Dipula Income Fund Limited ("Dipula") at 31 March 2021. During
the current six-month period, the last of the Group's holding in Rebosis Property Fund Limited ("Rebosis") was disposed of.
Dividend for the six months ended 31 March 2021
The board believes that, given the continued prevailing uncertainty brought about by the COVID-19 pandemic, it is important
that Arrowhead retain as much capital as possible to protect its balance sheet and bolster liquidity. Accordingly, the board has
resolved to defer the decision on the declaration of an interim dividend, for the six month period ended 31 March 2021, until not
later than the release of its financial results for the year ending 30 September 2021, expected to be on or about 25 November 2021.
Subsequent events
On 18 May 2021 Fairvest Property Holdings Limited ("Fairvest") announced that, inter alia, it had concluded agreements
with various Arrowhead B ("AHB") shareholders to acquire their Fairvest shares in return for 1,85 AHB shares per Fairvest
share, subject to various terms and conditions. Fairvest has advised Arrowhead that it wishes to engage on a scheme of
arrangement between Arrowhead and its AHB shareholders, in order to facilitate a 'single-step merger'. Arrowhead is always
open to considering proposals that may unlock value and has begun a process to more fully assess Fairvest's proposal. These
results do not take into consideration the impact of the merger between the companies should it materialise in the future.
Prospects
Arrowhead is pleased with the progress it has made in the current period and is well on track to stabilising its core portfolio
as it faces the challenges of a third wave of the COVID-19 pandemic. Given the uncertainty surrounding the unpredictable
environment in which the Company will be operating for the foreseeable future, the Company is not in a position to provide the
market with guidance as to its distributable income per share and dividend per share for the year ending 30 September 2021.
Short-form announcement
This short-form announcement is the responsibility of the board of directors of the Company. This short-form announcement is only
a summary of the full announcement released on SENS, published on Arrowhead's website: (http://www.arrowheadproperties.co.za)
https://arrowheadproperties.co.za/cmsAdmin/uploads/interim-results/arrowhead-interim-results-2021.pdf
and on the JSE website at
https://senspdf.jse.co.za/documents/2021/jse/isse/AHAE/IE2021.pdf
and does not contain the complete or full announcement details. Any investment decision by investors and shareholders should
be based on consideration of the full announcement. Copies of the full announcement may be requested from:
info@arrowprop.co.za
By order of the Board
26 May 2021
Directors M Nell* (Chairperson), M Kaplan (CEO), J Limalia (CFO), T Adler*, A Basserabie*, G Kinross*,
N Makhoba*, S Mokorosi*
Registered office 3rd Floor, Upper building, 1 Sturdee Avenue, Rosebank, Johannesburg, 2196
PO Box 685, Melrose Arch, 2076
Transfer secretaries JSE Investor Services Proprietary Limited
Sponsor Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Company secretary Vicki Turner
Website http://www.arrowheadproperties.co.za
* Independent non-executive. All directors are South African.
Date: 26-05-2021 07:15:00
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