Wrap Text
Final preliminary audited results and distribution declaration
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
having REIT status with the JSE (Act 45 of 2002)
Share code: OAS
ISIN: ZAE000074332
(“Oasis” or “the Fund”)
FINAL PRELIMINARY AUDITED RESULTS AND DISTRIBUTION DECLARATION
The directors of Oasis Crescent Property Fund Managers Limited (“OCPFM” or
“the Manager”), the management company of the Fund, present the
preliminary audited results of the Fund for the year ended 31 March 2014
as follows:
Statement of financial position as at 31 March 2014
Audited Audited
2014 2013
R’000 R’000
Assets
Non-current assets 720 209 639 454
Investment properties 427 201 380 592
Property, plant and equipment 331 149
Straight-line lease accrual 6 650 17 758
Available-for-sale financial assets 286 027 240 955
Current assets 67 020 55 400
Trade receivables 5 376 1 927
Other receivables 5 794 3 437
Trade receivables from related parties 302 -
Straight-line lease accrual 1 699 -
Financial assets at fair value
through profit or loss 40 714 44 487
Cash and cash equivalents 13 135 5 549
Total assets 787 229 694 854
Unitholders’ funds and liabilities
Unitholders’ funds 757 169 669 542
Capital of the Fund 504 663 469 552
Retained income 2 438 1 309
Other reserves 250 068 198 681
Current liabilities 30 060 25 312
Trade payables 7 400 4 210
Accruals 784 905
Other payables 1 526 1 352
Trade payables to related parties 594 456
Unitholders for distribution 19 409 18 604
Non-permissible income available for
dispensation 347 (215)
Total unitholders’ funds and
liabilities 787 229 694 854
Net asset value (“NAV”) (per unit) 1 706 cents 1 587 cents
Statement of comprehensive income for the year ended 31 March 2014
Audited Audited
2014 2013
R’000 R’000
Income 56 801 69 756
Rental and related income 54 042 51 890
Investment income 12 168 10 406
Straight-lining of lease income (9 409) 7 460
Expenses 26 806 24 634
Property expenses 22 859 21 046
Service charges 2 970 2 728
Other operating expenses 977 860
Net income from rentals and
investments 29 995 45 122
Fair value adjustment to investment
properties excluding straight-
lining of lease income 24 585 (13 104)
Fair value adjustment to investment
properties 15 176 (5 644)
Reversal of straight lining lease accrual 5 709 -
Straight-lining of lease income 3 700 (7 460)
Operating profit for the year 54 580 32 018
Net non-permissible investment
income 203 176
Non-permissible investment income
received 203 199
Interest paid - (23)
Net profit for the year 54 783 32 194
Other comprehensive income
Fair value gain on available-for-
sale financial assets 36 211 66 180
Total comprehensive income for
the year 90 994 98 374
Basic earnings per unit including
non-permissible income (cents) 124.1 77.9
Additional information:
Headline earnings and distributable income
reconciliation
Net profit for the period 54 783 32 194
Adjusted for:
Fair value adjustment to investment
properties (24 585) 13 104
Headline earnings 30 198 45 298
Less fair value adjustment on financial
assets at fair value through profit or
loss (1 129) (1 014)
Less straight line lease accrual 9 409 (7 460)
Distributable income including non-
permissible income 38 478 36 824
Non-permissible rental income (704) (25)
Non-permissible investment income (203) (179)
Distributable income excluding non-
permissible income 37 571 36 620
Basic earnings per unit including non-
permissible income (cents) 124.1 77.9
Headline earnings and diluted
headline earnings per unit
including non-permissible
income (cents) 68.4 109.7
Distribution per unit including non-
permissible income (cents) 87.2 89.2
Distribution per unit excluding non-
permissible income (cents) 85.1 88.7
Weighted average units in issue 44 130 490 41 304 831
Units in issue at the end of the year 44 406 888 42 182 225
Statement of changes in unitholders’ funds for the year ended 31 March
2014
Capital
of the Other Retained
Fund Reserves income Total
R’000 R’000 R’000 R’000
Balance at 1 April 2012 446 794 138 145 295 585 234
Net profit for the year
ended 31 March 2013 - - 32 194 32 194
Other comprehensive income
Fair value gain on
available-for-sale
financial assets - 66 180 - 66 180
Total comprehensive
income for the year
ended 31 March 2013 - 66 180 32 194 98 374
Issue of units in lieu
of distribution 33 170 - - 33 170
Repurchase and liquidation
of units (9 144) - - (9 144)
Transaction costs for
issue of new units (337) - - (337)
Transfer to non-
distributable reserve - (5 644) 5 644 -
Distribution received
in advance (931) - 298 (633)
Distribution to
unitholders - - (36 919) (36 919)
Dispensation of non-
permissible income - - (203) (203)
Balance at 1 April 2013 469 552 198 681 1 309 669 542
Net profit for the year
ended 31 March 2014 - - 54 783 54 783
Other comprehensive
income
Fair value gain on
available-for-sale
financial assets - 36 211 - 36 211
Total comprehensive
income for the year
ended 31 March 2014 - 36 211 54 783 90 994
Reinvestment of
distribution 35 715 - - 35 715
Transaction costs for
issue of new units (220) - - (220)
Transfer to non-
distributable reserve - 15 176 (15 176) -
Distribution received
in advance (384) - 282 (102)
Distribution to
unitholders - - (37 853) (37 853)
Dispensation of non-
permissible income - - (907) (907)
Balance at 31 March 2014 504 663 250 068 2 438 757 169
Statement of cash flows for the year ended 31 March 2014
Audited Audited
2014 2013
R’000 R’000
Cash flows from operating activities
Net profit for the period 54 783 32 194
Adjusted for:
Non-permissible investment income received (203) (199)
Interest paid - 23
Depreciation 35 21
Provision for receivables impairment (34) (519)
Straight-line lease accrual 3 700 (7 460)
Lease incentives 910 (762)
Reversal of straight-line lease accrual 5 709 -
Realised gain on sale of financial assets at
fair value through profit or loss (270) -
Fair value adjustment on financial assets
at fair value through profit or loss (1 129) (1 014)
Fair value adjustment to investment
properties excluding straight-lining of
lease income (24 585) 13 104
38 916 35 388
Decrease/(increase) in current assets
Trade receivables (3 415) 1 006
Other receivables (2 357) 49
Trade receivables from related parties (302) -
(Decrease)/increase in current liabilities
Trade payables 3 548 (227)
Accruals (121) 672
Other payables 174 395
Trade payables to related parties 138 10
Cash generated from operations 36 581 37 293
Interest paid - (23)
Non-permissible investment income received 203 199
Unitholders for distribution (1 333) (3 373)
Non-permissible income dispensed (345) (532)
Net cash inflow from operating activities 35 106 33 564
Cash flows from investing activities
Acquisition of available-for-sale
financial assets (8 861) (8 141)
Acquisition of financial assets at fair
value through profit or loss (6 300) (10 895)
Acquisition of property, plant and equipment (217) (152)
Additions to investment properties (10 119) (6 732)
Lease incentives paid (13 173) -
Proceeds from sale of financial assets
at fair value through profit or loss 11 472 3 000
Net cash outflow from investing activities (27 198) (22 920)
Cash flows from financing activities
Repurchase and liquidation of units - (9 144)
Distribution received in advance (102) (633)
Transaction cost (220) (337)
Net cash outflow from financing
activities (322) (10 114)
Net increase in cash and
cash equivalents 7 586 530
Cash and cash equivalents
At the beginning of the year 5 549 5 019
At the end of the year 13 135 5 549
Segmental information for the year ended 31 March 2014
Indus- Invest- Cor-
Retail Offices trial ments porate Total
R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue
Property income
Rental and
related income 26 718 11 761 15 563 - - 54 042
Income from
investments
excluding non-
permissible
income
Dividend income
offshore - - - 7 426 - 7 426
Permissible
investment
income -
domestic - - - 3 343 - 3 343
Fair value
adjustment to
financial
assets at fair
value through
profit or loss - - - 1 129 - 1 129
26 718 11 761 15 563 11 898 - 65 940
Segment expense
Property
expenses 15 756 3 881 4 062 - (840) 22 859
Service charges - - - - 2 970 2 970
Other operating
expenses - - - - 977 977
15 756 3 881 4 062 - 3 107 26 806
Realised gain on
sale of
available-for-
sale financial
assets - - - 270 - 270
Segment result
Operating
profit/(loss) 10 962 7 880 11 501 12 168 (3 107) 39 404
Net finance
income
Interest received - - - 203 - 203
Interest paid - - - - - -
Reversal of
Straight line
accrual (5 709) - - - - (5 709)
Net profit/(loss)
before
straight-line
lease income
and fair value
change to
investment
properties 5 253 7 880 11 501 12 168 (2 904) 33 898
Straight-lining
of lease
income (4 794) 89 1 005 - - (3 700)
Fair value
adjustment to
investment
properties 12 628 3 709 8 248 - - 24 585
Net profit/(loss)
after
straight-line
lease income
and fair
value change
to investment
properties 14 087 11 678 20 754 12 168 (2 904) 55 783
Segment assets
Investment
properties 173 703 95 341 158 157 - - 427 201
Property, plant
and equipment 270 61 - - - 331
Straight-line
lease accrual
non-current 2 409 - 4 241 - - 6 650
Straight-line
lease accrual
current 546 - 1 153 - - 1 699
Available-for-
sale financial
assets - - - 286 027 - 286 027
Trade receivables 1 600 551 3 225 - - 5 376
Trade receivables
from related
parties - - - - 302 302
Other receivables 290 111 1 958 1 412 2 023 5 794
Financial assets
at fair value
through profit
or loss - - - 40 714 - 40 714
Cash and cash
equivalents - - - 13 135 - 13 135
178 818 96 064 168 734 341 288 2 325 787 229
Segment
liabilities
Trade payables 3 180 565 3 655 - - 7 400
Accruals 8 - 547 - 229 784
Other payables 648 2 226 - 650 1 526
Trade payables
to related
parties 193 11 84 - 306 594
Unitholders for
distribution - - - - 19 409 19 409
Non-permissible
income
available for
dispensation - - - - 347 347
4 029 578 4 511 - 20 941 30 060
Net current
assets (1 593) 83 1 824 55 261 (18 616) 36 960
Capital
expenditure 1 361 823 7 935 - - 10 119
Segmental information for the year ended 31 March 2013
Indus- Invest- Cor-
Retail Offices trial ments porate 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
Realised gain on
available-for-
sale financial
assets - - - - - -
Segment result
Operating
profit/(loss) 10 802 7 159 13 527 10 406 (4 232) 37 662
Net finance
income
Interest received - - - 199 - 199
Interest paid - - - (23) - (23)
Net profit/(loss)
before
straight-line
lease income
and fair value
change 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 change
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 current
assets (2 147) (386) (991) 50 821 (17 209) 30 088
Capital
expenditure 653 - 6 079 - - 6 732
Commentary
Basis of preparation and accounting policies
The preliminary financial statements are prepared in accordance with the
requirements of the JSE Limited Listings Requirements for preliminary
reports. 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) and 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 and
the Collective Investment Schemes Control Act of 2002. The accounting
policies applied in the preparation of the financial statements from which
the preliminary financial statements were derived are in terms of
International Financial Reporting Standards and are consistent with those
accounting policies applied in the preparation of the previous annual
financial statements.
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.
The financial statements are prepared on the historical cost basis as
modified by the revaluation of investment properties, financial assets at
fair value through profit or loss and available-for-sale financial assets.
PricewaterhouseCoopers Inc. has audited the financial information set out
in this report. Their unqualified audit report is available for inspection
at the Fund’s registered office.
These preliminary audited results were compiled by Mr Wynand Pretorius
CA(SA).
Any reference to the future financial performance of the Fund contained in
this announcement has not been reviewed or reported on by the Fund’s
auditors.
Financial highlights
The Net Asset Value of The Fund has continued with its low volatility
growth path, up by 7.5% to 1 706 cents per unit (2013: 1 587 cents).
Distribution per unit excluding non-permissible income has decreased by
4.1% from 88.7 cents to 85.1 cents. The decrease in vacancy levels from
15.9% to 3.1% over the past year will have a positive impact going
forward.
2014 2013
Distribution per unit including non-permissible income
(cents) 87.2 89.2
Non-permissible rental income per unit (cents) (1.6) (0.1)
Non-permissible investment income per unit (cents) (0.5) (0.4)
Distribution per unit excluding non-permissible income
(cents) 85.1 88.7
Property portfolio valuation (Rm) 435.5 398.4
Investment portfolio valuation (Rm) 326.7 285.4
Cash and cash equivalents (Rm) 13.1 5.5
Net asset value per unit (cents) 1 706 1 587
Listed market price at year end (cents) 1 500 1 350
Movement in investment properties:
Carrying value at the beginning of the year 380 592 386 964
Additions 10 119 6 732
Acquisition of lease incentive asset 11 905 -
Fair value adjustment to investment properties
excluding straight-lining of lease income 24 585 (13 104)
Revaluation 15 176 (5 644)
Reversal of straight lining lease accrual 5 709 -
Change in straight-line lease accrual 3 700 (7 460)
Carrying value at the end of the year 427 201 380 592
During the current year, the Fund replaced a material lease with a new
lease with the same tenant, resulting in a realisation of the accrued
lease straight-line asset.
Fair value estimation:
Effective 1 April 2013, the Fund adopted IFRS 13 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 hierarchy:
- 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 following table presents the Fund's assets and liabilities that are
measured at fair value at 31 March 2014:
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 - 265 102 - 265 102
Investment in listed property
funds 18 681 - - 18 681
Investment in Oasis Crescent
International Property Equity
Feeder Fund - 2 244 - 2 244
Financial assets at fair value
through profit or loss
Investment in Oasis Crescent
Income Fund - 40 714 - 40 714
Investment property
Investment property
- - 427 201 427 201
The following table presents the Fund's assets and liabilities 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
Investment property
Investment property
- - 380 592 380 592
Market overview
In the Global Property Market, this is the 6th year of relatively low
supply and demand is recovering gradually. The tapering of Quantitative
Easing in the United States has resulted in those Real Estate Investment
Trusts (REIT’s) with longer debt duration and broader access to capital
markets gaining a competitive advantage given their lower cost of capital.
REITS with a funding advantage and strong locations have earning enhancing
opportunities for brownfield developments. Income yield remains
attractive relative to bond yields and inflation.
In the South African Market, there continues to be a high volume of new
supply of office space in Sandton and Cape Town. This current market
condition creates pressure on rental income levels. New AA grade
buildings are accepting first user leases at levels that are significantly
discounted. With this supply of new build at low rentals, tenants are
able to negotiate strongly on renewals of existing leases. The Retail
sector continues to experience an increase in supply, as has been the
trend for the past 3 years. The super-regional Centres are establishing
themselves as the destination of choice, while convenience centres
continue to perform well. The Industrial sector has seen a reduction in
vacancies, and rentals are stable.
Financial performance
For the year under review The Fund delivered a total shareholder return of
17.5% compared to inflation of 5.9%. Since inception the cumulative total
shareholder return is 164.5% compared to inflation of 65.2% for the same
period, significantly outperforming inflation.
The cumulative total intrinsic value return is 169.1%, with a return of
13.0% in the current year.
The Fund has outperformed inflation by an average of 6.1% per annum since
inception. This has allowed for long term growth of wealth in real terms
within a low risk strategy. At a market price of R15.00 on the 31st of
March 2014 The Fund was trading at a discount of 12.1% to its net asset
value.
Cumulative returns 2014 2013 2012 2011 2010 2009 2008 2007
Total shareholder return % 164.5 125.0 103.3 88.3 67.4 52.9 40.4 30.6
Total intrinsic value return
% 169.1 138.2 104.5 83.9 65.2 44.1 35.4 16.2
Inflation % 65.2 56.0 47.3 39.0 33.5 27.0 14.2 6.3
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 shareholder return which is calculated based on
actual market price movements as per Altx quoted prices.
4. The Fund was incorporated on 23 November 2005.
5. Inflation lagged by one month as March 2014 inflation was not released
by date of publication.
Portfolio overview
Office Properties
The office component of The Portfolio continues to be fully let, with the
lease at market related rental and escalations.
Industrial Properties
At year end 2013 we advised that a process was undertaken to refurbish all
vacant industrial properties. A plan was followed to enhance the
attractiveness and quality of the Industrial Portfolio to improve the
rental generating capability of these properties. With the positive impact
on the quality of the properties, occupancy of the Funds properties in the
direct South African industrial sector is now 100%.
Retail Properties
The largest retail asset in The Fund is The Ridge @ Shallcross, a
community shopping centre in Durban, KwaZulu-Natal. The Fund is seeing the
benefits of the focus on developing this Centre to provide a superior
experience for customers and tenants.
Portfolio valuation
The investment properties were independently valued by Mills Fitchet
Magnus Penny Proprietary Limited on 31 March 2014. The fair value of
investment properties is determined using observable market inputs. The
valuation methodologies include discounted cash flow and net income
capitalisation, using contracted rental income and other observable cash
flows. Capitalisation rates used in the valuations are the most recent
rates published by the South African Property Owners Association (SAPOA).
The portfolio was valued at R435.5 million.
Outlook
The Fund’s global diversification decreases risk and provides exposure to
high quality global assets. This remains a unique characteristic of The
Fund. The cash holdings of The Fund provide it with flexibility to grow
through value-enhancing acquisitions and developments. Developments with
potential to add value have been identified and are being evaluated.
The Fund is in a position to increase the income earning potential on the
Direct Property Portfolio by maximizing the returns on existing assets.
The retail assets have been identified as a key focus area to achieve this
objective. The decrease in vacancy over the past year will have a
positive impact going forward.
Management remain confident in the strategy of The Fund and are satisfied
with the execution thereof.
Related party transactions and balances
Oasis Crescent Property Fund Managers Limited is the management company of
the Fund in terms of the Collective Investment Schemes Control Act.
Oasis Group Holdings (Proprietary) Limited is a tenant at The
Ridge@Shallcross and the parent of Oasis Crescent Property Fund Managers
Limited.
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)
Limited, the manager of the Fund.
As disclosed in the prospectus of Oasis Crescent Income Fund a management
fee is charged for investing in the Oasis Crescent Income Fund by Oasis
Crescent Management Company Limited, the manager of the Fund.
There are common directors to Oasis Crescent Property Fund Managers
Limited, Oasis Group Holdings Proprietary Limited, Oasis Global Management
Company (Ireland) Limited and Oasis Crescent Management Company Limited.
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 Limited.
Related party transactions
2014 2013
R’000 R’000
Service charge paid to Oasis Crescent Property Fund
Managers Limited 2 970 2 728
Property management fees paid to Oasis Crescent
Property Fund Managers Limited 921 909
Other service charges paid to Oasis Crescent Property
Fund Managers Limited 32 28
Rental and related income from Oasis Group
Holdings (Proprietary) Limited at The
Ridge@Shallcross 415 381
Consulting fees paid to Abli Property Developers
(Proprietary) Limited for consulting services on
capital projects 356 -
Related party balances
Trade receivables from Oasis Group Holdings
(Proprietary) Limited 302 -
Trade payables to Abli Property Developers
(Proprietary Limited) (39) -
Trade payables to Oasis Group Holdings (Proprietary)
Limited (142) (59)
Trade payables to Oasis Crescent Property Fund
Managers Limited (413) (397)
(292) (456)
Declaration announcement in respect of distribution for the 6 months ended
31 March 2014
Notice is hereby given that a distribution for the six-month period ended
31 March 2014 has been approved and declared of 4 205.33 cents (in
aggregate), after non-permissible income, for every 100 (one hundred)
units so held, to unitholders recorded in the register of the Fund at
12:00pm on Friday, 30 May 2014. Unitholders may elect to receive the
distribution in cash or to reinvest the distribution by the purchase of
new units at a rate of 2.46571 units at 1 705.53 cents per unit (in
aggregate), for every 100 (one hundred) units so held.
Unitholders should take note of the corporate timetable as set out below
in respect of the abovementioned distribution and the election in terms
thereof.
Salient dates and times 2014
Declaration announcement on SENS of distribution
and right of election to purchase new units or
receive a cash payment Tuesday, 6 May
Circular and form of election posted to
Unitholders on Monday, 12 May
Finalisation announcement on SENS in respect of
distribution and right of election to
purchase new units or receive a cash payment Friday, 16 May
Last day to trade in order to be eligible for
the distribution Friday, 23 May
Trading commences ex-entitlement Monday, 26 May
Listing of maximum possible number of units that
may be purchased at commencement of trade on Tuesday, 27 May
Closing date for the election at 12:00 pm Friday, 30 May
Record date Friday, 30 May
Cash distribution cheques posted and CSDP/broker
accounts updated with cash Monday, 2 June
Unit certificates posted and CSDP/broker accounts
updated with units Tuesday, 3 June
Announcement of the results of the
distribution on SENS Tuesday, 3 June
Adjustment of number of new units listed on
or about Wednesday, 4 June
Note:
1. Unitholders electing to reinvest their distribution in new units are
alerted to the fact that the new units will be listed 2 days after the
Last Day to Trade and that these new units can only be traded 2 days
after the Last Day to Trade, due to the fact that settlement of the
units will be 2 days after the Record Date, which differs from the
conventional one day after the Record Date settlement process.
2. Units may not be dematerialised or rematerialised between Monday, 26
May 2014 and Friday, 30 May 2014 both days inclusive.
3. The above dates and times are subject to change. Any changes will be
released on the Stock Exchange News Service (“SENS”) of the JSE.
4. All times quoted are South African times.
5. Dematerialised unitholders are requested to ascertain from their broker
or CSDP as to the cut-off time as stipulated in terms of their mandate
required by them in order to advise the transfer secretaries of their
election.
6. If no election is made, the distribution accrued to the unitholder will
be used to purchase additional units.
Tax implications
For taxation purposes, OCPF 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. The distribution will not be
exempt from income tax in terms of section 10(1)(k) of the Income Tax Act.
For South African tax residents, the distribution will be exempt from
dividends tax in terms of section 64F(l) of the Income Tax Act, provided
that you, as unitholder, provide your transfer secretary, nominee,
custodian or CSDP with confirmation of your tax residence status in the
prescribed form. If you do not provide the required residence status, they
will have no choice but to withhold dividends tax at a rate of 15%.
For non-residents for South African tax purposes, the distribution
received by a non-resident from a REIT will be subject to dividend
withholding tax at 15%, which will amount to a net distribution amount of
3 574.5305 cents (in aggregate), after non-permissible income, for every
100 (one hundred) units so held, unless the rate is reduced in terms of
any applicable agreement for the avoidance of double taxation (“DTA”)
between South Africa and the country of residence of the shareholder. Non-
resident unitholders that believe that a reduced rate of tax applies in
respect of their applicable DTA should contact their transfer secretary,
nominee, custodian or CSDP for the prescribed form to record the reduced
rate of tax.
The Income Tax Act sections applicable to the distributions made are as
follows:
Property income distribution from a REIT – section 10(1)(k) and section
64F(l)
Both resident and non-resident unitholders are encouraged to consult their
professional tax advisors with regard to their individual tax liability in
this regard.
A circular will be posted out to unitholders on or about Monday, 12 May
2014, in respect of the unit and income distribution.
By order of the board
Oasis Crescent Property Fund Managers Limited
Cape Town
6 May 2014
Designated Adviser
PSG Capital (Pty) Limited
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