Wrap Text
Reviewed interim results for the six months ended 30 September 2013 and unit declaration announcement
Oasis Crescent Property Fund
A property fund created under the Oasis Crescent Property Trust Scheme
registered in terms of the Collective Investment Schemes Control Act
(Act 45 of 2002), that has REIT status with the JSE Limited.
Share code: OAS
ISIN: ZAE000074332
(“Oasis” or “the Fund”)
Reviewed interim results for the six months ended 30 September 2013
Condensed statement of comprehensive income
for the 6 months ended 30 September 2013
Reviewed Reviewed Audited
6 months 6 months 12 months
to 30 to 30 to 31
September September March
2013 2012 2013
R’000 R’000 R’000
Revenue 25 922 28 096 69 756
Rental and related income 26 556 25 394 51 890
Income from investments excluding non- 6 236 5 871 10 406
permissible income
Straight-lining of lease income (6 870) (3 169) 7 460
Expenses 13 238 12 291 24 634
Property expenses 11 357 10 254 21 046
Service charges 1 443 1 338 2 728
Other operating expenses 438 699 860
Net income from rentals and investments 12 684 15 805 45 122
Fair value adjustment to investment
properties excluding straight-lining of
lease income 5 709 3 169 (13 104)
Fair value adjustment to investment
properties (1 161) - (5 644)
Straight-lining of lease income 6 870 3 169 (7 460)
Operating profit for the period 18 393 18 974 32 018
Net non-permissible investment income 104 46 176
Non-permissible investment income 104 69 199
received
Interest paid - (23) (23)
Net profit for the period 18 497 19 020 32 194
Other comprehensive income
Fair value gain on available-for-sale 16 332 23 290 66 180
financial assets
Total comprehensive income for the 34 829 42 310 98 374
period
Basic earnings per unit including non- 43.10 46.75 77.90
permissible income (cents)
Reconciliation of distributable income
for the 6 months ended 30 September
2013
Rental and related income 26 556 25 394 51 890
Less: Property expenses (11 357) (10 254) (21 046)
Property operating income 15 199 15 140 30 844
Investment income 6 340 5 940 10 605
Less: Investment expenses - (23) (23)
Investment operating income 6 340 5 917 10 582
Less: Fair value adjustment on
financial assets at fair value through (742) (367) (1 014)
profit or loss
Service charges and other operating (1 881) (2 037) (3 588)
expenses
Distributable income including non- 18 916 18 653 36 824
permissible income
Non-permissible rental income (323) (267) (25)
Non-permissible investment income (104) (95) (179)
Distributable income excluding non-
permissible income 18 489 18 291 36 620
Distribution per unit including non-
permissible income (cents) 44.1 45.9 89.2
Interim distribution per unit (cents) 44.1 45.9 45.9
Final distribution per unit (cents) - - 43.3
Additional information:
Headline earnings and diluted headline
earnings per unit including non- 29.8 39.0 109.7
permissible income (cents)
Distribution per unit including non- 44.1 45.9 89.2
permissible income (cents)
Distribution per unit excluding non- 43.1 45.0 88.7
permissible income (cents)
Weighted average units in issue 42 915 837 40 685 181 41 304 831
Units in issue at the end of the period 43 301 294 41 097 679 42 182 225
Headline earnings and distribution income
reconciliation
Net profit for the period 18 497 19 020 32 194
Adjusted for:
Fair value adjustment to investment
properties (5 709) (3 169) 13 104
Headline earnings 12 788 15 851 45 298
Less: Fair value adjustments on
financial assets at fair value through
profit or loss (742) (367) (1 014)
Less: Straight-line lease accrual 6 870 3 169 (7 460)
Distribution income including non-
permissible income 18 916 18 653 36 824
Non-permissible rental income (323) (267) (25)
Non-permissible investment income (104) (95) (179)
Distribution income excluding non-
permissible income 18 489 18 291 36 620
Distribution per unit excluding non-
permissible income (cents) 43.1 45.0 88.7
Interim distribution per unit (cents) 43.1 45.0 45.0
Final distribution per unit (cents) - - 43.7
Condensed statement of financial position
as at 30 September 2013
Reviewed Reviewed Audited
30 30 31
September September March
2013 2012 2013
R’000 R’000 R’000
Assets
Non-current assets 667 270 590 749 639 454
Investment properties 394 061 388 587 380 592
Property, plant and equipment 134 43 149
Straight-line lease accrual 10 262 6 750 17 758
Available-for-sale financial assets 262 813 195 369 240 955
Current assets 61 745 55 840 55 400
Trade receivables 2 942 3 054 1 927
Trade receivables from related parties 37 - -
Other receivables 5 354 2 411 3 437
Straight-line lease accrual 727 - -
Financial assets at fair value through
profit or loss 45 184 37 448 44 487
Cash and cash equivalents 7 501 12 927 5 549
Total assets 729 015 646 589 694 854
Unitholders’ funds and liabilities
Unitholders’ funds 703 019 612 732 669 542
Capital of the Fund 487 012 453 803 469 552
Retained income 2 538 663 1 309
Non–distributable reserve 119 900 123 919 121 444
Available-for-sale reserve 93 569 34 347 77 237
Current liabilities 25 996 33 857 25 312
Trade payables 4 531 13 405 4 210
Accruals 746 198 905
Other payables 1 315 933 1 352
Trade payables to related parties 432 431 456
Unitholders for distribution 18 815 18 751 18 604
Non-permissible income available for
dispensation 157 139 (215)
Total unitholders’ funds and
liabilities 729 015 646 589 694 854
NAV (in cents per unit) 1624 1491 1587
Condensed statement of changes in unitholders’ funds
for the 6 months ended 30 September 2013
Capital Non- Available-
of the distributable for-sale Retained
Fund reserve reserve income Total
R’000 R’000 R’000 R’000 R’000
Balance at 1 April
2012 446 794 127 088 11 057 295 585 234
Net profit for the
period ended 30
September 2012 - - - 19 020 19 020
Other
Comprehensive
Income
Fair value gain on
available-for-sale
financial assets - - 23 290 - 23 290
Total
Comprehensive
Income for the
period ended 30
September 2012 - - 23 290 19 020 42 310
Issue/(repurchase)
of units (9 144) - - - (9 144)
Issue of units in
lieu of
distribution 16 524 - - - 16 524
Transaction costs
for issue of new
units (185) - - - (185)
Distribution
received in
advance (186) - - 186 -
Transfer from non-
distributable
reserve - (3 169) - - (3 169)
Distribution to
unitholders - - - (18 476) (18 476)
Dispensation of
non-permissible
income - - - (362) (362)
Balance at 30
September 2012 453 803 123 919 34 347 663 612 732
Net profit for the
period ended 31
March 2013 - - - 13 174 13 174
Other
Comprehensive
Income
Fair value gain on
available-for-sale
financial assets - - 42 890 - 42 890
Total
Comprehensive
Income for the
period ended 31
March 2013 - - 42 890 13 174 56 064
Issue of units in
lieu of
distribution 16 646 - - - 16 646
Transaction costs
for issue of new
units (152) - - - (152)
Transfer from non-
distributable
reserve - (2 475) - 5 644 3 169
Distribution
received in
advance (745) - - 112 (633)
Distribution to
unitholders - - - (18 443) (18 443)
Dispensation of
non-permissible
income - - - 159 159
Balance at 31
March 2013 469 552 121 444 77 237 1 309 669 542
Net profit for the
period ended 30
September 2013 - - - 18 497 18 497
Other
Comprehensive
Income
Fair value gain on
available-for-sale
financial assets - - 16 332 - 16 332
Total - - 16 332 18 497 34 829
Comprehensive
Income for the
period ended 30
September 2013
Issue of units in
lieu of
distribution 17 791 - - - 17 791
Transaction costs
for issue of new
units (166) - - - (166)
Transfer from non-
distributable
reserve - (1 161) - 1 161 -
Transfer from non-
distributable
reserve - (383) - 383 -
Distribution
received in
advance (165) - - 165 -
Distribution to
unit holders - - - (18 654) (18 654)
Dispensation of
non-permissible
income - - - (323) (323)
Balance at 30
September 2013 487 012 119 900 93 569 2 538 703 019
Condensed statement of cash flows
for the 6 months ended 30 September 2013
Reviewed Reviewed Audited
6 months to 6 months to 12 months to
30 September 30 September 31 March
2013 2012 2013
R’000 R’000 R’000
Cash flows from operating
activities
Net profit for the period 18 497 19 020 32 194
Adjusted for:
Non-permissible investment (104) (69) (199)
income received
Interest paid - 23 23
Depreciation 15 6 21
Provision for receivables
impairment 49 (579) (519)
Straight-line lease accrual 6 870 3 169 (7 460)
Lease incentives 312 (383) (762)
Realised gain on financial
assets at fair value through (85) (58) -
profit or loss
Fair value adjustment on
financial assets at fair
value through profit or loss (742) (367) (1 014)
Fair value adjustment to
investment properties
excluding straight-lining of
lease income (5 709) (3 169) 13 104
Net operating cash flow 19 103 17 593 35 388
before changes in working
capital
(Increase)/decrease in
current assets
Trade receivables (1 015) 956 1 006
Trade receivables from (37) - -
related parties
Other receivables (1 917) 58 49
Increase/(decrease) in
current liabilities
Trade payables 321 (176) (227)
Accruals (159) (35) 672
Other payables (37) (24) 395
Trade payables to related
parties (24) (15) 10
Cash generated from
operations 16 235 18 357 37 293
Interest paid - (23) (23)
Non-permissible investment
income received 104 69 199
Unitholders for distribution (487) (1 430) (3 373)
Non-permissible income
dispensed 49 (336) (532)
Net cash inflow from
operating activities 15 901 16 637 33 564
Cash flows from investing
activities
Acquisition of available-for-
sale financial assets (5 525) (5 445) (8 141)
Acquisition of financial
assets at fair value through
profit or loss (5 347) (4 445) (10 895)
Additions to investment
properties (2 134) (1 623) (6 732)
Proceeds from sale of
financial assets at fair
value through profit or loss 5 523 3 000 3 000
Leasehold improvements (6 300) - -
Acquisition of property,
plant and equipment - (31) (152)
Net cash outflow from
investing activities (13 783) (8 544) (22 920)
Cash flows from financing
activities
Repurchase and liquidation of
units - - (9 144)
Distribution received in
advance - - (633)
Transaction costs on issue of
new units (166) (185) (337)
Net cash flow from financing
activities (166) (185) (10 114)
Net increase in cash and cash
equivalents 1 952 7 908 530
Cash and cash equivalents
At beginning of period 5 549 5 019 5 019
At end of period 7 501 12 927 5 549
Segment information for the 6 months ended 30 September 2013
Indus- Invest- Corpo-
Retail Offices trial ments rate Total
R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue
Property income
Rental and
related income 13 130 5 431 7 995 - - 26 556
Income from
investments
excluding non-
permissible
income
Dividend income
offshore - - - 3 852 - 3 852
Permissible
investment
income -
domestic - - - 1 557 - 1 557
Fair value
adjustment to
financial assets
at fair value
through profit
or loss - - - 742 - 742
Realised gain on
financial assets
at fair value
through profit
or loss - - - 85 - 85
13 130 5 431 7 995 6 236 - 32 792
Segment expense
Property
expenses 8 026 1 729 1 485 - 117 11 357
Service charges - - - - 1 443 1 443
Other operating
expenses - - - - 438 438
8 026 1 729 1 485 - 1 998 13 238
Fair value
adjustment to
investment
properties (1 161) - - - - (1 161)
Segment result
Operating
profit/(loss) 3 943 3 702 6 510 6 236 (1 998) 18 393
Net finance
income
Net interest
received - - - 104 - 104
Net
profit/(loss)
before straight-
line lease
income and fair
value adjustment
to investment
properties 3 943 3 702 6 510 6 340 (1 998) 18 497
Straight-lining
of lease income (5 835) (18) (1 017) - - (6 870)
Fair value
adjustment to
investment
properties 1 161 - - - - 1 161
Net
profit/(loss)
after straight-
line lease
income and fair
value adjustment
to investment
properties (731) 3 684 5 493 6 340 (1 998) 12 788
Segment assets
Investment
properties 159 298 91 580 143 183 - - 394 061
Property, plant
and equipment 64 70 - - - 134
Straight-line 7 509 109 3 371 - - 10 989
lease accrual
Available-for-
sale financial
assets - - - 262 813 - 262 813
Trade
receivables 1 813 367 762 - - 2 942
Trade
receivables from
related parties - - - - 37 37
Other
receivables 284 63 1 857 1 077 2 073 5 354
Held-for-trading
investments - - - 45 184 - 45 184
Cash and cash
equivalents 2 349 - 143 5 009 - 7 501
171 317 92 189 149 316 314 083 2 110 729 015
Segment
liabilities
Trade payables 3 170 173 896 - 292 4 531
Accruals - - - - 746 746
Other payables 461 83 515 - 256 1 315
Trade payables
to related
parties 107 11 33 - 281 432
Unitholders for
distribution - - - - 18 815 18 815
Non-permissible
income available
for dispensation - - - - 157 157
3 738 267 1 444 - 20 547 25 996
Net segment
assets 167 579 91 922 147 872 314 083 (18 437) 703 019
Capital
expenditure 230 697 1 207 - - 2 134
Segment information for the 6 months ended 30 September 2012
Indus- Invest- Corpo-
Retail Offices trial ments rate Total
R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue
Property income
Rental and
related income 12 175 4 768 8 451 - - 25 394
Income from
investments
excluding non-
permissible
Dividend income
offshore - - - 3 605 - 3 605
Permissible
investment
income - - - - 1 841 - 1 841
domestic
Fair value
adjustment to
financial assets - - - 367 - 367
at fair value
through profit
or loss
Realised gain on
financial assets
at fair value
through profit
or loss - - - 58 - 58
12 175 4 768 8 451 5 871 - 31 265
Segment expense
Property
expenses 7 310 1 364 1 580 - - 10 254
Service charges - - - - 1 338 1 338
Other operating
expenses - - - - 699 699
7 310 1 364 1 580 - 2 037 12 291
Segment result
Operating
profit/(loss) 4 865 3 404 6 871 5 871 (2 037) 18 974
Net finance
income
Net interest
received - - - 46 - 46
Net
profit/(loss)
before straight-
line lease
income and fair
value adjustment
to investment
properties 4 865 3 404 6 871 5 917 (2 037) 19 020
Straight-lining
of lease income (2 735) (87) (347) - - (3 169)
Fair value
adjustment to
investment
properties 2 735 87 347 - - 3 169
Net
profit/(loss)
after straight-
line lease
income and fair
value adjustment
to investment
properties 4 865 3 404 6 871 5 917 (2 037) 19 020
Segment assets
Investment
properties 169 645 65 344 153 598 - - 388 587
Property, plant
and equipment 43 - - - - 43
Straight-line
lease accrual 1 555 89 5 106 - - 6 750
Available-for-
sale financial
assets - - - 195 369 - 195 369
Trade
receivables 957 302 287 1 508 - 3 054
Other
receivables 284 59 2 - 2 066 2 411
Held-for-trading
investments - - - 37 448 - 37 448
Cash and cash
equivalents – - - 12 927 - 12 927
172 484 65 794 158 993 247 252 2 066 646 589
Segment
liabilities
Trade payables 3 158 379 667 - 9 201 13 405
Accruals - - - - 198 198
Other payables 660 9 181 - 83 933
Trade payables
to related 181 - 78 - 172 431
parties
Unitholders for - - - - 18 751 18 751
distribution
Non-permissible - - - - 139 139
income available
for dispensation
3 999 388 926 - 28 544 33 857
Net segment
assets 168 485 65 406 158 067 247 252 (26 478) 612 732
Capital
expenditure 373 - 1 250 - - 1 623
Segment information for the year ended 31 March 2013
Indus- Invest- Corpo-
Retail Offices trial ments rate Total
R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue
Property income
Rental and
related income 24 765 9 981 17 144 - - 51 890
Income from
investments
excluding non-
permissible
income
Dividend income
offshore - - - 5 876 - 5 876
Permissible
investment income
- domestic - - - 3 516 - 3 516
Fair value
adjustment to
financial assets
at fair value
through profit or
loss - - - 1 014 - 1 014
24 765 9 981 17 144 10 406 - 62 296
Segment expense
Property expenses 13 963 2 822 3 617 - 644 21 046
Service charges - - - - 2 728 2 728
Other operating
expenses - - - - 860 860
13 963 2 822 3 617 - 4 232 24 634
Segment result
Operating
profit/(loss) 10 802 7 159 13 527 10 406 (4 232) 37 662
Net finance
income
Net interest
received - - - 176 - 176
Net profit/(loss)
before straight-
line lease income
and fair value
adjustment to
investment
properties 10 802 7 159 13 527 10 582 (4 232) 37 838
Straight-lining
of lease income 8 631 (103) (1 068) - - 7 460
Fair value
adjustment to
investment
properties (3 666) 7 013 (16 451) - - (13 104)
Net profit/(loss)
after straight-
line lease income
and fair value
adjustment to
investment
properties 15 767 14 069 (3 992) 10 582 (4 232) 32 194
Segment assets
Investment
properties 161 702 76 895 141 995 - - 380 592
Property, plant
and equipment 83 66 - - - 149
Straight-line
lease accrual 13 278 105 4 375 - - 17 758
Available-for-
sale financial
assets - - - 240 955 - 240 955
Trade receivables 1 465 83 379 - - 1 927
Other receivables 342 170 111 785 2 029 3 437
Financial assets
at fair value
through profit or
loss - - - 44 487 - 44 487
Cash and cash
equivalents - - - 5 549 - 5 549
176 870 77 319 146 860 291 776 2 029 694 854
Segment
liabilities
Trade payables 3 107 356 745 - 2 4 210
Accruals - 117 547 - 241 905
Other payables 755 166 153 - 278 1 352
Trade payables to
related parties 92 - 36 - 328 456
Unitholders for
distribution - - - - 18 604 18 604
Non-permissible
income available
for dispensation - - - - (215) (215)
3 954 639 1 481 - 19 238 25 312
Net segment
assets 172 916 76 680 145 379 291 776 (17 209) 669 542
Capital 653 - 6 079 - - 6 732
expenditure
Basis of preparation and accounting policies
The interim results of the Fund have been prepared on the historic cost
basis, except for financial instruments and investment properties which
are carried at fair value, in accordance with International Financial
Reporting Standards (IFRS), as well as the SAICA Financial Reporting
Guides, and the Financial Reporting Pronouncements, International
Accounting Standard 34 (IAS 34) and the requirements of the Collective
Investment Schemes Control Act of 2002. The non-permissible income is
dispensed to the Oasis Crescent Fund Trust which is a registered public
benefit organisation. The accounting policies are consistent with those
applied in the most recent annual financial statements of the Fund, which
should be read in conjunction with this report. The interim financial
statements have been prepared under the revised disclosure requirements of
IAS 34. The Fund’s external auditor, PricewaterhouseCoopers Inc. has
reviewed the financial information set out in this report. Their
unqualified review report is available for inspection at the Fund’s
registered office. These abridged reviewed results were compiled by Mr.
Johan Henning CA(SA).
Fair value estimation of investments
Effective 1 January 2009, the Fund adopted the amendment to IFRS 7 for
financial instruments that are measured in the statement of financial
position at fair value which requires disclosure of fair value
measurements by level of the following fair value measurement hierachy:
- Quoted prices (unadjusted) in active markets for identical assets or
liabilities (level 1).
- Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices) (level 2).
- Inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs) (level 3).
The information below analyses financial assets and financial liabilities,
which are carried at fair value, by level of hierarchy as required by IFRS
7 and IFRS 13.
The following table presents the Fund’s financial assets that are measured
at fair value at 30 September 2013:
Assets Level 1 Level 2 Level 3 Total
R ’000 R ’000 R ’000 R ’000
Available-for-sale financial assets
Investment in Oasis Crescent
Global Property Equity Fund - 241 545 - 241 545
Investment in listed
property funds 19 169 - - 19 169
Investment in Oasis Crescent
International Property Equity
Feeder Fund - 2 099 - 2 099
Financial assets at fair value through profit or loss
Investment in Oasis Crescent
Income Fund - 45 184 - 45 184
The following table presents the Fund’s assets that are measured at fair
value at 30 September 2012:
Assets Level 1 Level 2 Level 3 Total
R ’000 R ’000 R ’000 R ’000
Available-for-sale financial assets
Investment in Oasis Crescent
Global Property Equity Fund - 178 018 - 178 018
Investment in listed
property funds 17 351 - - 17 351
Financial assets at fair value through profit or loss
Investment in Oasis Crescent
Income Fund - 37 448 - 37 448
The following table presents the Fund’s financial assets that are measured
at fair value at 31 March 2013:
Assets Level 1 Level 2 Level 3 Total
R ’000 R ’000 R ’000 R ’000
Available-for-sale financial assets
Investment in Oasis Crescent
Global Property Equity Fund - 221 157 - 221 157
Investment in listed
property funds 19 798 - - 19 798
Financial assets at fair value through profit or loss
Investment in Oasis Crescent
Income Fund - 44 487 - 44 487
The fair value of financial liabilities approximates their fair value due
to the short term nature of the instruments.
Specific valuation techniques used to value financial instruments include:
- Level 1: Quoted closing market prices at financial position date..
- Level 2: Valuation techniques using observable market data in the form
of quoted market prices on the Irish Stock Exchange and prices determined
by the Management company for those financial instruments. Instruments
quoted on the Irish Stock Exchange are not considered to fall within level
1 because it is not considered an active market where instruments can be
traded.
- Level 3: Instruments not included in Level 1 or Level 2 above.
There have been no significant transfers between level 1, 2 or 3 during
the period under review, nor were there any significant changes to the
valuation techniques and inputs used to determine fair values.
The operational results of the Fund is not affected by seasonal or
cyclical fluctuations.
Related party transactions and balances
Identity of the related parties with whom material transactions have
occurred
Oasis Crescent Property Fund Managers Ltd. is the management company of
the Fund in terms of the Collective Investment Schemes Control Act.
Oasis Group Holdings (Pty) Ltd. is a tenant at the Ridge@Shallcross and
the parent of Oasis Crescent Property Fund Managers Ltd.
As disclosed in the prospectus of Oasis Crescent Global Property Equity
Fund, a management fee is charged for investing in the Oasis Crescent
Global Property Equity Fund by Oasis Global Management Company (Ireland)
Ltd., the manager of the Fund.
As disclosed in the prospectus of the Oasis Crescent Income Fund, a
management fee is charged for investing in the Oasis Crescent Income Fund
by Oasis Crescent Management Company Ltd., the manager of the fund.
There are common directors to Oasis Crescent Property Fund Managers Ltd.,
Oasis Group Holdings (Pty) Ltd., Oasis Global Management Company (Ireland)
Ltd. and Oasis Crescent Management Company Ltd. Transactions with related
parties are executed on terms no less favourable than those arranged with
third parties.
Type of related party transactions
The Fund pays a service charge and a property management fee on a monthly
basis to Oasis Crescent Property Fund Managers Ltd.
Related party transactions
6 months to 6 months to 12 months
30 September 30 September to 31 March
2013 2012 2013
Related party transactions R’000 R’000 R’000
Service charge paid to Oasis
Crescent Property Fund Managers
Ltd. 1 443 1 338 2 728
Property management fees paid to
Oasis Crescent Property Fund 472 441 909
Managers Limited
Managers Ltd.
Rental and related income paid by
Oasis Group Holdings (Pty) Ltd. at
the Ridge@Shallcross 202 209 381
Related party balances
6 months to 6 months to As at
30 September 30 September 31 March
2013 2012 2013
Related party balance R’000 R’000 R’000
Trade (payables to)/receivables
from Oasis Group Holding (Pty) Ltd. (38) (102) (59)
Trade (payables to)/receivables
from Oasis Crescent Property Fund
Managers Ltd. (357) (329) (397)
Directors’ commentary
Financial Highlights
6 months to 6 months to 12 months to
30 September 30 September 31 March
2013 2012 2013
Distribution per unit including
non-permissible income (cents) 44.1 45.9 89.2
Non-permissible rental income per
unit (cents) (0.8) (0.7) (0.1)
Non-permissible investment income
per unit (cents) (0.2) (0.2) (0.4)
Distribution per unit excluding
non-permissible income (cents) 43.1 45.0 88.7
Property portfolio valuation (Rm) 405.1 395.3 398.4
Investment in Offshore Listed
Properties (Rm) 241.5 178.0 221.2
Investments in Local Listed
Properties (Rm) 19.2 17.4 19.8
Cash and cash equivalents (Rm) * 52.7 50.4 50.0
Net asset value per unit (cents) 1 624 1 491 1587
Listed market price (cents) 1 360 1 320 1350
*Includes held-for-trading investments.
Since its listing, the focus of the Fund has been to:
• Build a portfolio of quality properties through direct investments;
• Attract high quality tenants;
• Build an investment portfolio; and
• Investment in listed global property for scalability, geographical and
currency diversification.
Your Fund continues to deliver on its objectives and to deliver stable
income and capital growth.
The total shareholder return has been strong through all economic
conditions, generating 9.7% over the last 12 months.
Overview
Your Fund is well positioned in the current economic cycle with no debt
and substantial reserves. The Fund is well diversified in terms of sector,
tenant mix, geography and currency. Your Fund has 34.4% of its assets
invested internationally. The global portfolio is well diversified, and
should continue to deliver growth in earnings and value over the medium
term.
The Fund continued to deliver a positive real return with a total
shareholder return of 9.7% compared to inflation of 6.4% over the last 12
months. Measured since the inception of the Fund, the cumulative total
shareholder return is 134.0% compared to inflation over this period of
62.3%, showing substantial inflation beating growth. This provides an
annualised total shareholder return of 11.5% for the Fund since inception
against annual inflation of 6.4% during that period. Beating inflation by
an annual average of 5.1% allows for the real growth of wealth over the
long term. The total intrinsic value return since inception is 150.3%
with an annualised total intrinsic value return of 12.4%.
The level of diversification in the Fund gives it flexibility to allocate
the assets in a manner which enables it to perform consistently through
the cycle.
The accumulated cash reserve gives the ability to take advantage of
attractive investment and development opportunities.
Overview of performance
The Fund has continued to deliver a competitive return relative to
inflation.
Sep Sep Sep Sep Sep
2013 2012 2011 2010 2009
(%) (%) (%) (%) (%)
Oasis Crescent Property Fund 9.7 8.9 12.3 7.8 20.4
Actual Return
Oasis Crescent Property Fund 14.9 14.0 11.5 11.4 7.5
Total Intrinsic Value Return
Inflation 6.4 4.9 5.7 3.2 6.1
Notes:
1. Performance is based on total return (capital and distribution
excluding non-permissible income).
2. The return was realised at low risk due to no debt.
3. Intrinsic return is calculated based on movements in the net asset
value (NAV) compared to actual return which is calculated based on actual
market price movements as per Altx quoted prices.
4. The Fund was incorporated on 23 November 2005; inflation for 2006 has
been weighted accordingly.
5. Inflation lagged by one month as September 2013 inflation not
released by date of publication.
Fund Portfolio
Segment profile based on 30 September 30 September 31 March 2013
distributable income 2013 2012 (%)
(%) (%)
Industrial 33 36 36
Retail 25 26 28
Office 19 18 19
Listed properties and 23 20 17
other investments
100 100 100
Segment profile based on 30 September 30 September 31 March 2013
assets employed 2013 (%) 2012 (%) (%)
Industrial 21 25 21
Retail 23 27 26
Office 13 10 11
Listed properties and 43 38 42
other investments
100 100 100
Office Properties
The office component of the portfolio remains fully let.
Industrial Properties
Your Fund continues to successfully implement the strategy to refurbish
and reposition the industrial properties. This is in-line with the Fund’s
policy of ensuring that all assets are maintained in an excellent
condition, meeting the requirements of world class tenants. There is
currently a major refurbishment taking place at the Moorsom Avenue
property, in preparation for the commencement of a 10 year lease with a
national furniture manufacturer and retailer. This period of refurbishment
has a short term impact on earnings for this cycle. The new lease
commences on 1 November 2013 and will enhance shareholder value. We have
completed the refurbishment of both Nourse Avenue and Sacks Circle. Nourse
Avenue is fully let and we are in final negotiations with a national
logistics tenant for Sacks Circle.
Retail Properties
There is continued progress in implementing the strategy at The Ridge @
Shallcross to provide shoppers with a superior experience. The Centre
offers this with its safety, convenience, and cleanliness. We have
completed the expansion of Checkers, the anchor tenant of The Ridge @
Shallcross, enabling the tenant to offer a new generation Checkers Hyper
of over 7,500 square meters. We are currently engaged in extending the
parking capacity at the Centre and building a drive-through restaurant for
McDonalds. This will be a unique drawcard for the Centre as it will be
the only location in the area where this sought after global brand is
available. These material investments into the Centre by high quality
tenants have been made as a result of strong growth by the Centre and its
growing popularity, and further increase the appeal of the Centre by
broadening the offering that is available.
Footfall has increased by 28.5% from 2008; and footfall has increased by
8.3% for the 6 months to 30 September, year on year.
Tenant turnover has increased by 64% from 2008; most notable increases
were 14% and 18% in the last two completed financial years.
With the expansions and additions to The Ridge we anticipate continued
growth in the number of shoppers visiting The Ridge. This in turn will
continue to attract quality tenants and sustain the overall performance of
The Ridge. This is borne out by the substantial drop in vacancies and high
occurrence of renewals.
At Protea Assurance House in St. George’s Mall we have signed a long term
lease with KFC, and the fit-out of this new store has commenced. This
will be an excellent addition to the tenant mix of this property.
Global Investment
Your fund has the benefit of exposure to a global portfolio with an
excellent track record, which provides it with a competitive advantage. It
is well balanced in terms of geographic and sectoral exposure and has a
high exposure to Real Estate Investment Trusts (REITS) that are positioned
to benefit from secular demand drivers and superior balance sheets. Global
REIT income yields remain attractive relative to bond and cash yields and
the global property component of the portfolio continues to take advantage
of these opportunities.
The Fund has 34.4% of its portfolio invested in global investments of
R241.5 million (September 2012: R178.0 million).
Outlook
These positive developments are in line with our efforts to protect and
enhance the assets in the Fund’s portfolio and the Fund’s objective to
provide unitholders with consistent and high quality performance from the
Fund. The South African property environment is reacting with volatility
to external factors. Your Fund has maintained consistent performance
throughout this cycle based on the fundamentals of the Fund. We have
focused on enhancing the value of the assets within our portfolio which
has resulted in material growth in the Net Asset Value, and we will
continue with this process. We have identified attractive development
opportunities which will provide us with the ability to grow the portfolio
through the development of high quality properties for national and
international brands. At period end the Fund was trading at an 18.9%
discount to NAV on an ex dividend basis, representing an excellent
investment opportunity. Any reference to the future financial performance
of the Fund included in this announcement has not been reviewed or
reported on by the Fund’s auditors.
Service charge
The service charge is equal to 0.5% per annum of the Fund’s market
capitalisation and borrowing facilities based on the average daily closing
prices of the units. The amount paid to the Managers was R1.443 million
(September 2012: R1.338 million).
Property management
Property management is outsourced to the Managers and external service
providers. The amount paid to Managers was R472,090 (September 2012:
R441,146).
Actual units in issue
September 2013: 43 301 294 (September 2012: 41 097 679).
Changes to the Board
During the interim period the following changes to the board of directors
occurred:
Z Kara resigned effective 7 May 2013
A A Gani was appointed as independent non-executive director effective 7
May 2013
Distribution declaration and important dates
Notice is hereby given that a unit distribution after non-permissible
income in respect of the six months ended 30 September 2013 of 2.65 units
for every 100 units so held, has been declared payable to unit holders
recorded in the register of the Fund at close of business on Friday, 15
November 2013. The concomitant income distribution of 4,308.25 cents (in
aggregate) for 100 units so held, which unit holders may elect to receive
in lieu of the aforementioned unit distribution.
Unitholders should take note of the corporate action timetable as set out
below in respect of the above unit and income distribution and the
election in terms thereof:
Declaration announcement on SENS of unit Friday, 18 October 2013
distribution and right of election to
receive income distribution
Circular and form of election posted to Monday, 21 October 2013
unitholders
Last day to trade in order to be eligible Friday, 8 November 2013
for the unit distribution/unit distribution
Trading commences ex-entitlement Monday, 11 November 2013
Listing of maximum possible number of income Monday,11 November 2013
distribution units at commencement of trade
Closing date for the election of income Friday, 15 November 2013
distribution or scrip issue at 12:00
Record date for income distribution Friday, 15 November 2013
Unit certificates and/or income distribution Monday, 18 November 2013
cheques posted and CSDP/broker accounts
updated
Announcement of the results of the income Monday, 18 November 2013
distribution on SENS
Adjustment of number of new units listed Wednesday, 20 November 2013
Note:
1. Units may not be dematerialised or rematerialised between Monday 11
November 2013 and Friday 15 November 2013, both days included.
2. All times quoted are South African times.
3. Dematerialised unitholders are requested to ascertain from their broker
or CSDP as to the cut-off time required by them in order to advise the
transfer secretaries of their election.
4. If no election is made, unitholders will receive the unit distribution.
Tax Implications of the Distribution
In respect of the unit distribution (and concomitant income distribution),
the manager hereby advises unit holders, who will receive the unit
distribution, that for taxation purposes, Oasis is a REIT as defined in
the Income Tax Act as from 01 April 2013 and, accordingly, the tax
implications of the distribution have changed as from that date. In
accordance with the provisions of Section 1 of the Income Tax Act, Oasis
is a South African resident company and a REIT and as such any unit
distribution (and concomitant income distribution) is a dividend
distribution as envisaged in accordance with the provisions of the Income
Tax Act. If you are a South African resident taxpayer the unit
distribution (and concomitant income distribution) will, however, not be
exempt from tax in terms of section 10(1)(k) of the Income Tax Act.
Accordingly the provisions of Dividend Tax will not be applicable to South
African resident taxpayers and the unit distribution (and concomitant
income distribution) will be included in such taxpayers’ gross income for
any given period.
Should the unit distribution (and concomitant income distribution) be made
to a non-South African resident taxpayer, it shall be regarded as an
ordinary dividend payment and will be exempt from income tax in terms of
section 10(1)(k). Further, in terms of section 64F(2) this payment is also
exempt from Dividend Tax until 31 December 2013. Any dividend from a REIT
received by or accrued to non-resident taxpayers from 1 January 2014 will
be subject to Dividends Tax at a rate of 15%, unless the unit holder has,
on the form prescribed by Oasis, confirmed that a lower rate of tax or no
tax is applicable. The Dividends Tax is a final tax and will be withheld
by Oasis on distribution made on or after 1 January 2014.
The Income Tax Act sections applicable to the distributions made are as
follows:
- Property income distribution – section 10(1)(k) and section 64F.
Unit holders both South African resident and non-resident taxpayers are
encouraged to consult their professional tax advisors with regard to their
individual tax liability in this regard.
A circular will be posted to unitholders on or about 21 October 2013 in
respect of the income and unit distribution.
By order of the Board
Oasis Crescent Property Fund Managers Limited
Cape Town
18 October 2013
Designated Advisor
PSG Capital (Pty) Limited
Date: 18/10/2013 03:15:00 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
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information disseminated through SENS.
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