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EMIRA PROPERTY FUND - UNAUDITED INTERIM RESULTS FOR THE ONE MONTH PERIOD ENDED
31 DECEMBER 2003
EMIRA PROPERTY FUND
A property fund created under the Emira Property Scheme,
registered in terms of the Collective Investment Schemes Control Act
JSE Share code: EMI
ISIN: ZAE000050712
("Emira")
UNAUDITED INTERIM RESULTS FOR THE ONE MONTH PERIOD ENDED 31 DECEMBER 2003
Emira Property Fund Actual Forecast Forecast
Unaudited income statements unaudited results in results
For the one month period ended results the pre- on the
31 December 2003 listing date of
statement on listing
18 November on 28
2003 November
2003
R"000 R"000 R"000
Revenue 23,166 25,415 19,307
Net income from property rental
operations 13,293 14,623 11,109
Net finance costs -654 -2,051 -176
Listing costs -264 --- ---
Net income for the one month
period 12,375 12,572 10,933
Headline earnings reconciliation
Net income for the one month 12,375 12,572 10,933
Add: Listing costs 264 --- ---
Headline earnings 12,639 12,572 10,933
Weighted average number of
participatory interests in issue
("000) 262,134 272,134 262,134
Headline earnings per
participatory interest (cents) 4.82 4.62 4.17
Earnings per participatory
interest (cents) 4.72
Distribution per participatory
interest (cents) 4.72 4.62 4.10
Notes:
1. The actual results reflect the revenue and earnings from the 56
properties transferred by listing date, the additional 12 properties
transferred in December 2003 and the new property acquired as
detailed in the press announcement on 10 February 2004.
2. The forecast contained in the pre-listing statement on 18
November 2003 reflects forecast revenue and earnings for the 77
properties acquired pursuant to Emira"s listing.
3. The forecast at listing date reflects forecast revenue and
earnings from the 56 properties acquired as at listing date only.
Unaudited balance sheet as at 31 31 18 November 28
December 2003 December 2003 November
2003 Pre-listing 2003
Unaudited forecast for Listing
the listing date
date balance balance
sheet sheet
R"000 R"000 R"000
Assets
Investment properties 1,374,902 1,548,622 1,086,509
Fixed assets 18,736 16,332 16,332
Long-term assets 1,393,638 1,564,954 1,102,841
Accounts receivable and
prepayments 6,963 --- ---
Cash and cash equivalents 332,671 82,494 497,608
Current assets 339,634 82,494 497,608
Total assets 1,733,272 1,647,448 1,600,449
Capital and liabilities
Participatory interest holders"
capital 1,301,207 1,349,323 1,299,323
Long-term interest bearing
liabilities 386,784 298,125 301,126
Short-term portion of long term
interest bearing liabilities 2,492 --- ---
Accounts payable 30,414 --- ---
Provision for distributions to
participatory interest holders 12,375 --- ---
45,281 --- ---
Total fund holders" capital and 1,733,272 1,647,448 1,600,449
long-term liabilities
Unaudited cash flow statement One month
For the one month period ended ended
31 December 2003 31 December
2003
Unaudited
R"000
Cash generated from rental
operations 36,458
Cash generated from investment
income 2,172
Cash utilised to pay financing
costs -2,826
Cash utilised for property and
associated asset investing
activities -1,393,352
Cash raised from borrowings 389,276
Cash raised from private
placements upon listing 1,310,668
Cash utilised for listing
costs/listing cost credits -9,725
Net change in cash and cash
equivalents 332,671
Unaudited statement of changes Distributable Participatory
in participatory interest reserves interests
holders" funds R"000 R"000
For the one month period ended
31 December 2003
Issue of 262,133,684 --- 1,310,668
participatory interests at 500
cents each
Headline earnings for the year 12,639 ---
Listing costs -264 -9,461
Provision for distributions to -12,375 ---
participatory interest holders
--- 1,301,207
Additional unaudited financial information as
at 31 December 2003 R"000
Outstanding capital commitments as at 31 December 2003:
Properties acquired prior to listing but
subject to transfer which were still
outstanding as at 31 December 2003 81,445
Properties acquired prior to listing subject to
competition authority approval which were still
to be transferred as at 31 December 2003 181,900
Total commitments as at 31 December 2003 263,345
Less commitments to be paid for by the issue of
participatory interests -50,000
Cash commitments as at 31 December 2003 213,345
Leasehold property commitments due within one
year 1,515
Leasehold property commitments due thereafter 136,002
Capital expenditure commitments as at 31
December 2003 47,431
Depreciation 286
Management fees and service charges 785
Emira Property Fund
31 December 2003
CHIEF EXECUTIVE OFFICER"S REVIEW
Financial Review
Emira Property Fund ("Emira") listed on the JSE Securities Exchange South Africa
("JSE") on 28 November 2003 and is pleased to report its results and maiden
distribution of 4.72 cents per participatory interest for the period 28 November
2003 to 31 December 2003. The earnings per participatory interest are ahead of
the forecast for the fund despite the loss of rental income caused by delays in
the transfer of properties to Emira.
The results incorporate the profits from the property acquisition announced in
the press on 12 February 2004.
The actual unaudited results have been compared to both the forecast contained
in Scenario A in the prelisting statement and the listing announcement on
28 November 2003 ("listing announcement"). The listing announcement was
published for participatory interest holders information since only 56 of the 77
acquisition properties had been transferred as at the listing date, and provided
a forecast for these 56 properties only.
With regards to the actual net financing costs, these were lower than the pre-
listing forecast as property transfer delays gave rise to lower borrowings and
higher cash reserves over the month of December 2003.
Operational Review
At the time of listing additional capital was raised for the acquisition of
further properties. One acquisition was announced in the press on 12 February
2004, and we are currently considering further acquisitions that will utilise a
portion of our cash, to enhance the yield and geographical spread of the
property portfolio.
Capital expenditure budgeted for at certain key retail properties in order to
provide enhanced rental revenues have commenced. The work is expected to be
completed according to schedule.
Occupancy rates in the portfolio remain stable and at levels reported at the
time of listing.
A further 12 of the original acquisition properties were transferred in December
2003, resulting in the revenue and earnings being materially higher than the
forecast reflected in the listing announcement. A further 6 of the original
acquisition properties have been transferred since 31 December 2003. The
remaining 3 properties listed in the pre-listing statement remain to be
transferred. The delays in respect of these properties, relating to the issue
of rates clearance certificates and a lost title deed, have now been overcome
and transfer of these properties is expected in due course.
Prospects
Emira"s management expects to report profits for the six months to 30 June 2004
in accordance with the forecast contained in Scenario A of the pre-listing
statement. This forecast, which includes the results of all 77 property
acquisitions detailed in the pre-listing statement dated 18 November 2003,
reflects net income per participatory interest for the period from 1 January
2004 to 30 June 2004 of 27,98 cents.
Accounting Policies And Financial Statements Review
The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The accounting policies
used in the preparation of the financial statements are consistent with those
used in the preparation of the pro forma historical figures and forecasts
detailed in the pre-listing statement.
There have been no changes in the fair value of the investment properties during
the period under review.
Notice Of Distribution
Emira"s maiden distribution of 4,72 cents per participatory interest is hereby
declared. The distribution is payable on 23 March 2004 to participatory interest
holders recorded in the register on 19 March 2004.
Any change in address or distribution instruction to apply to this distribution
must be received by Emira"s transfer secretaries by no later than 12 March 2004.
No dematerialisation or rematerialisation of participatory interests may occur
between 15 March 2004 and 19 March 2004, both days inclusive. This announcement
will be mailed to all participatory interest holders on or about 27 February
2004.
Last day to trade participatory interests cum
distribution 12 March 2004
Participatory interests trade ex distribution from 15 March 2004
Record date 19 March 2004
Payment date 23 March 2004
By order of the Board
C.Wallach
Company secretary
Strategic Real Estate Managers (Proprietary) Limited
This report was approved by the fund manager"s Board of Directors and is signed
on their behalf by:
R. van der Bos W Schultze
Chief executive officer Director
Sandton
26 February 2004
Property fund manager:
Strategic Real Estate Managers (Proprietary) Limited
Directors of the fund manager:
B.J. van der Ross (Chairman)*, R.P.S. van der Bos (Chief executive officer),
L .Barnard* L. Basson*, L.J. Forrester, B.T. Jackson*, M.S.B. Neser*,
W.K. Schultze
* Non-executive director
Trustee:
ABSA Bank Limited
Transfer secretaries:
Computershare Limited
PO Box 61051, Marshalltown, 2107
70 Marshall Street, Johannesburg, 2001
Merchant bank and sponsor:
RAND MERCHANT BANK (A division of First Rand Bank Limited) CORPORATE FINANCE
Date: 26/02/2004 05:26:26 PM Supplied by www.sharenet.co.za
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