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REDEFINE INCOME FUND - RESULTS AND DISTRIBUTION ANNOUNCEMENT

Release Date: 05/10/2000 15:21
Code(s): RDF
Wrap Text
REDEFINE INCOME FUND LIMITED
INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA
REGISTRATION NUMBER: 1999/018591/06

RESULTS AND DISTRIBUTION ANNOUNCEMENT FOR THE PERIOD TO 31 AUGUST 2000* GROUP INCOME STATEMENT
* FROM 23 FEBRUARY 2000 (DATE OF JSE LISTING) TO END OF FINANCIAL YEAR 31 AUGUST 2000
AUDITED PRO-FORMA FORECAST R000'S R000'S # REVENUE
PROPERTY PORTFOLIO 56 838 50 292
LISTED SECURITIES PORTFOLIO 46 262 43 919
103 100 94 211
OPERATING COSTS 17 621 17 382
OPERATING PROFIT 85 479 76 829 CAPITAL PROFIT ON DISPOSAL OF LISTED
SECURITIES 1 529 -
PROFIT BEFORE FINANCE CHARGES 87 008 76 829
FINANCE CHARGES 46 678 38 974
PROFIT BEFORE TAXATION 40 330 37 855
TAXATION - 374 PROFIT ATTRIBUTABLE TO LINKED
UNITHOLDERS 40 330 37 481
LINKED UNIT DISTRIBUTIONS 38 801 37 481
INTERIM DISTRIBUTION 19 032 18 740
FINAL DISTRIBUTION 19 769 18 741
PROFIT AFTER DISTRIBUTIONS 1 529 -
TRANSFER TO NON-DISTRIBUTABLE RESERVE 1 529 -
RETAINED PROFIT - -
ACTUAL NUMBER OF UNITS IN ISSUE (000'S) 232 582 -
WEIGHTED NUMBER OF UNITS IN ISSUE (000'S) 222 537 220 478
EARNINGS PER UNIT (CENTS) 18,12 17,00
HEADLINE EARNINGS PER UNIT (CENTS) 17,44 17,00
DISTRIBUTION PER UNIT (CENTS) 17,00 17,00
# A PRO-FORMA FORECAST, DRAWN FROM THE PRE-LISTING PROSPECTUS AND ADJUSTED FOR THE REVIEW PERIOD, IS PRESENTED IN THE INCOME STATEMENT FOR COMPARATIVE PURPOSES. GROUP BALANCE SHEET
AUDITED
R000'S ASSETS
NON-CURRENT ASSETS 1 197 067 PROPERTY PORTFOLIO 587 025
LISTED SECURITIES PORTFOLIO 610 042
CURRENT ASSETS 31 959
TRADE AND OTHER RECEIVABLES 16 214
CASH AND CASH EQUIVALENTS 15 745
1 229 026 EQUITY AND LIABILITIES
CAPITAL AND RESERVES 462 505
LINKED UNIT CAPITAL 460 976
NON-DISTRIBUTABLE RESERVE 1 529
NON-CURRENT LIABILITIES 724 318
INTEREST BEARING LIABILITIES 641 964
NON-INTEREST BEARING LIABILITIES 82 354
CURRENT LIABILITIES 42 203
INTEREST BEARING LIABILITIES 16 917
TRADE AND OTHER PAYABLES 5 517
UNITHOLDERS FOR DISTRIBUTION 19 769
1 229 026 NET ASSET VALUE PER UNIT (CENTS) 198,86 GROUP CASH FLOW STATEMENT (ABRIDGED)
AUDITED
R000'S
CASH EFFECTS FROM OPERATING ACTIVITIES 8 626
CASH GENERATED FROM OPERATIONS 74 336
NET FINANCING COSTS (46 678) DISTRIBUTION PAID (19 032) CASH EFFECTS OF INVESTING ACTIVITIES (1 195 092) NET PROPERTY ACQUISITIONS (586 579) NET SECURITIES ACQUIRED (608 513) CASH EFFECTS OF FINANCING ACTIVITIES 1 202 211 LINKED UNITS ISSUED 460 976
BORROWINGS RAISED 741 235
CASH AND CASH EQUIVALENTS 15 745 STATEMENT OF CHANGES IN EQUITY (ABRIDGED)
AUDITED
R000'S
LINKED UNITS ISSUED 464 769
PRELIMINARY EXPENSES WRITTEN OFF (3 793)
PROFIT ATTRIBUTABLE TO LINKED UNITHOLDERS 40 330
DISTRIBUTIONS TO LINKED UNITHOLDERS (38 801) BALANCE AT 31 AUGUST 2000 462 505 COMMENTS REVIEW OF RESULTS
THE COMPANY WAS LISTED AS A PROPERTY LOAN STOCK ON 23 FEBRUARY 2000 AND NO COMPARATIVE FIGURES ARE TABLED AS THESE ARE MAIDEN RESULTS.
REVENUE IS 9 PERCENT HIGHER THAN FORECAST, REFLECTING AN INCREASED PERFORMANCE FROM BOTH THE PROPERTY AND LISTED SECURITIES PORTFOLIOS. VACANCIES HAVE DECLINED FROM 7,9 PERCENT OF TOTAL LETTABLE AREA AT LISTING DATE TO 5,6 PERCENT.
REDEFINE HAS BEEN AWARDED AN A+ INVESTMENT GRADE RATING BY THE INTERNATIONAL RATING AGENCY FITCHIBCA.
DURING THE REVIEW PERIOD, TWO PROPERTIES CLASSIFIED AS TRADING STOCK WERE SOLD AT A NOMINAL TRADING PROFIT AND 4 PROPERTIES WERE ACQUIRED AT A COST OF R30,8M. THE SHARE IN HYPROP INVESTMENTS LIMITED WAS INCREASED FROM 20 PERCENT TO 32 PERCENT AND CERTAIN LISTED SECURITIES WERE DISPOSED OF AT A CAPITAL PROFIT OF R1,529M. POST YEAR-END EVENTS
AN INDUSTRIAL BUILDING IN ISANDO, LEASED TO NATIONAL TENANTS, HAS BEEN ACQUIRED FOR R28,5M. FOUR PROPERTIES, WHICH DO NOT CONFORM TO REDEFINE'S INVESTMENT PROFILE, HAVE BEEN DISPOSED OF AT A SELLING PRICE OF R24,7M, SUBJECT TO FULFILMENT OF CERTAIN CONDITIONS.
THE INVESTMENT IN COMPASS PROPERTIES LTD HAS BEEN INCREASED AT A COST OF R5,7M. OBJECTIVES THE COMPANY AIMS TO: * RESTRUCTURE NON-INTEREST BEARING LIABILITIES; * REDUCE THE LEVEL OF GEARING;
* INCREASE ASSETS BY THE ACQUISITION OF QUALITY PROPERTIES AND LISTED SECURITIES. PROSPECTS
THE BOARD INTENDS TO ACTIVELY EXPAND THE CAPITAL BASE OF THE COMPANY AND, THROUGH THIS POLICY, IMPROVE LIQUIDITY. INTEREST DISTRIBUTION NO. 2
LINKED UNITHOLDERS ARE ADVISED THAT INTEREST DISTRIBUTION NO. 2 IN RESPECT OF THE QUARTER 1 JUNE 2000 TO 31 AUGUST 2000 OF 8,5 CENTS PER LINKED UNIT IS HEREBY DECLARED.
PAYMENT WILL BE MADE TO LINKED UNITHOLDERS REGISTERED IN THE BOOKS OF THE COMPANY AT CLOSE OF BUSINESS ON 20 OCTOBER 2000. CHEQUES WILL BE POSTED ON OR ABOUT 31 OCTOBER 2000. BY ORDER OF THE BOARD
WOLF CESMAN, CHAIRMAN PETER PENHALL CHIEF EXECUTIVE OFFICER JOHANNESBURG 5 OCTOBER 2000
DIRECTORS (NON EXECUTIVE): WOLF CESMAN (CHAIRMAN), ERIC ELLERINE, JEFFREY KRON, MARC WAINER
E-MAIL: REDEFINE@CORPBANK.CO.ZA: WEBSITE: WWW.REDEFINEFUND.CO.ZA TELEPHONE: (011) 283-0110
REGISTERED OFFICE: 2 ARNOLD ROAD ROSEBANK JOHANNESBURG 2001 P O BOX 91656 AUCKLAND PARK 2006
TRANSFER SECRETARIES: MERCANTILE REGISTRARS LTD 11 DIAGONAL STREET JOHANNESBURG 2001 TELEPHONE (011) 370-5000 NEWS RELEASE
PROPERTY LOAN STOCK REDEFINE INCOME FUND DELIVERS MAIDEN HEADLINE EARNINGS OF 17 CENTS PER LINKED UNIT
IN LITTLE MORE THAN SIX MONTHS OF OPERATIONS, PROPERTY LOAN STOCK (PLS) COMPANY REDEFINE INCOME FUND CHALKED UP A MAIDEN REVENUE STREAM OF R103-MILLION FROM ITS HYBRID STRUCTURE OF DIRECTLY-OWNED PROPERTY AND LISTED SECURITY PORTFOLIOS. REDEFINE WAS LISTED ON FEBRUARY 23, 2000, AND THE FINANCIAL REPORTING PERIOD COVERS OPERATIONS FROM THAT DATE TO FINANCIAL YEAR-END AUGUST 31, 2000. THE COMPANY POSTED HEADLINE EARNINGS OF 17,44 CENTS (FORECAST: 17 CENTS) PER LINKED UNIT AND A NET ASSET VALUE OF 198,86 CENTS PER LINKED UNIT.
MARKET CAPITALISATION AT YEAR-END WAS R467,5-MILLION.
REDEFINE, THE ONLY PLS TO PAY UNITHOLDERS EVERY THREE MONTHS INSTEAD OF THE CONVENTIONAL SIX MONTHS, DECLARED A SECOND QUARTERLY DISTRIBUTION OF 8,5 CENTS PER LINKED UNIT, BRINGING TOTAL DISTRIBUTION PAID TO UNIT HOLDERS DURING THE MAIDEN REPORTING PERIOD TO 17 CENTS.
CEO PETER PENHALL SAID THE INCOME FUND'S PROGRESS HAD BEEN MORE THAN SATISFACTORY IN BEDDING DOWN THE NEW ACQUISITIONS.
THE FINANCIAL ACCOUNTS CARRIES A PRO FORMA FORECAST BASED ON REDEFINE'S PRE-LISTING PROSPECTUS, ADJUSTED FOR THE PERIOD UNDER REVIEW, WHICH PROVIDED SOME MEASURE OF POSITIVE PERFORMANCE.
THIS SHOWED THAT REVENUE HAD IMPROVED NINE PERCENT ON FORECAST, WITH THE PROPERTY PORTFOLIO PRODUCING R56,8-MILLION AND THE LISTED SECURITIES PORTFOLIO R46,3-MILLION.
PENHALL SAID THE FINANCIAL RESULTS HAD UNDERLINED THE COMFORT LEVEL OFFERED TO INVESTORS BY AN INDEPENDENT A+ INVESTMENT RATING AWARDED BY INTERNATIONAL RATING AGENCY FITCHIBCA.
VACANCIES IN THE SPREAD OF 58 DIRECTLY-OWNED PROPERTIES WERE BROUGHT DOWN TO 5,6 PERCENT OF TOTAL LETTABLE AREA FROM 7,9 PERCENT AT LISTING DATE. THIS LEASING ACTIVITY WOULD RESULT IN A SIGNIFICANT ENHANCEMENT OF THE COMPANY'S BOTTOM LINE RESULTS INTO THE FUTURE.
PENHALL SAID REDEFINE WOULD CONTINUE WITH ITS POLICY OF IMPROVING TRADEABILITY OF REDEFINE LINKED UNITS BY EXPANDING THE R1,2-BILLION ASSET BASE BY WAY OF QUALITY PROPERTY AND LISTED SECURITIES ACQUISITIONS.
TO THIS END, SEVERAL DEALS HAVE BEEN CLOSED IN THE LISTED SECURITIES PORTFOLIO, THE MOST SIGNIFICANT OF WHICH WAS THE INCREASE OF THE SHARE IN HYPROP
INVESTMENTS LIMITED FROM 20 PERCENT TO 32 PERCENT (HYPROP OWNS UPMARKET HYDE PARK SHOPPING CENTRE, AND SEVERAL UPMARKET OFFICE DEVELOPMENTS). INVESTMENT IN PLS COMPASS PROPERTIES LIMITED HAD ALSO INCREASED AT A COST OF R5,7-MILLION. REDEFINE'S HOLDING IN ITS SPREAD OF LISTED SECURITIES IS R610-MILLION. IN ITS DIRECTLY OWNED PORTFOLIO, REDEFINE ACQUIRED AN INDUSTRIAL BUILDING IN ISANDO WITH NATIONAL TENANTS FOR R28,5-MILLION. FOUR PROPERTIES WHICH DID NOT CONFORM TO THE INVESTMENT PROFILE HAD BEEN SOLD FOR R24,7-MILLION, SUBJECT TO THE FULFILMENT OF CERTAIN CONDITIONS
INVESTMENT IN DIRECTLY OWNED PROPERTIES AT YEAR-END WAS R587-MILLION. ENDS FAR OUT COMMUNICATION CC COMMUNICATION AND EDITORIAL CONSULTANTS
OFFICE : 10 REMBRANDT PLAZA, 286 LISTER ROAD, REMBRANDT PARK 2090 TELEPHONE : 27 11 346-2666 FAX : 27 11 346-0290 EMAIL : MANUCOMM@IAFRICA.COM HOME : 27-11 882-4446 286 PASTEUR ROAD REMBRANDT PARK 2090

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