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Redefine Income Fund Limited - Unaudited Interim Results For The Six Months
Ended 29 February 2004 Consolidated Income Statement
Redefine Income Fund Limited
(Registration No. 1999/018591/06)
Share Code: RDF ISIN Code: ZAE000023503
("Redefine")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 29 FEBRUARY 2004
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Feb 2004 Feb 2003 31 Aug 2003
R000 R000 R000
Revenue
Property portfolio 117 238 92 940 197 919
Listed security portfolio 88 143 90 448 164 174
205 381 183 388 362 093
Operating costs - property portfolio 36 093 23 844 52 691
Administration costs 9 026 8 041 17 415
Operating profit 160 262 151 503 291 987
Net capital gain on non-current assets 97 266 120 380 51 340
Profit from operations 257 528 271 883 343 327
Interest received 1 068 3 970 6 657
Profit before finance charges 258 596 275 853 349 984
Finance charges 92 614 89 427 182 447
Profit before taxation 165 982 186 426 167 537
Taxation - - -
Profit attributable to
linked unitholders 165 982 186 426 167 537
Headline earnings and distributions
Profit attributable to
linked unitholders 165 982 186 426 167 537
Net capital gain on
non-current assets (97 266) (120 380) (51 340)
Headline earnings and
total distributions 68 716 66 046 116 197
- First quarter 32 068 29 669 29 135
- Second quarter 36 648 36 377 34 966
- Third quarter - - 25 369
- Fourth quarter - - 26 727
Earnings per linked unit
Actual number of linked
units in issue (000) 463 358 421 653 413 016
Weighted number of linked
units in issue (000) 442 838 388 146 392 839
Earnings per linked unit
(cents) 37,48 48,03 42,65
Headline earnings per
linked unit (cents) 15,52 17,02 29,58
Distribution per linked
unit (cents) 15,50 17,00 2,75
Net asset value per
linked unit (cents) 265,28 265,73 240,79
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Unaudited Unaudited Audited
Feb 2004 Feb 2003 31 Aug 2003
R000 R000 R000
Balance at beginning of
period 994 503 761 457 761 457
- As previously stated 994 503 753 666 753 666
- Deferred interest rate
hedging gain - 7 791 7 791
Net issue of linked units 128 750 246 242 226 143
Issue expenses written-off (443) (979) (1 178)
Revaluation of interest
rate swaps 9 132 (6 649) (43 259)
Profit attributable to
linked unitholders 165 982 186 426 167 537
Distributions to linked unitholders (68 716) (66 046) (116 197)
1 229 208 1 120 451 994 503
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
Feb 2004 Feb 2003 31 Aug 2003
R000 R000 R000
ASSETS
Non-current asset 2 777 806 2 465 895 2 448 578
Property portfolio 1 279 546 1 171 026 1 139 256
Listed security portfolio 1 498 260 1 293 727 1 309 322
Interest rate swaps - 1 142 -
Current assets 92 843 93 578 76 729
Trading securities 492 9 347 5 392
Deposits, prepayments and
other receivables 16 724 15 837 19 667
Tenant debtors 7 718 4 814 6 384
Listed security distributions
and sales 52 653 58 173 45 262
Cash and cash equivalents 15 256 5 407 24
Total assets 2 870 649 2 559 473 2 525 307
EQUITY AND LIABILITIES
Capital and reserves 1 229 208 1 120 451 994 503
Linked unit capital 1 011 785 903 831 883 478
Non-distributable reserve 243 759 215 478 146 493
Deferred interest rate
hedging (loss) gain (26 336) 1 142 (35 468)
Non-current liabilities 1 568 362 1 375 741 1 468 072
Interest-bearing liabilities 1 542 026 1 375 741 1 432 604
Interest rate swaps 26 336 - 35 468
Current liabilities 73 079 63 281 62 732
Interest-bearing liabilities 15 221 15 480 17 086
Trade and other payables 23 049 11 424 15 754
Bank overdraft - - 3 165
Unitholders for distribution 34 809 36 377 26 727
Total equity and liabilities 2 870 649 2 559 473 2 525 307
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Feb 2004 Feb 2003 31 Aug 2003
R000 R000 R000
Cash effects from operating
activities 12 630 (22 127) (15 085)
Cash generated from
operations 164 810 122 724 279 900
Net financing costs (91 546) (85 457) (175 790)
Linked unit distributions paid (60 634) (59 394) (119 195)
Cash effects of investing activities (232 405) (449 481) (503 242)
Net property acquisitions (135 331) (362 747) (403 936)
Net listed security acquisitions (97 074) (86 734) (99 306)
Cash effects from financing activities 238 172 510 043 548 214
Linked units issued 128 750 245 263 224 965
Net borrowings 109 422 264 780 323 249
Net movement in cash and
cash equivalents 18 397 38 435 29 887
Opening cash and cash equivalents (3 141) (33 028) (33 028)
Closing cash and cash equivalents 15 256 5 407 (3 141)
BASIS OF PREPARATION
The financial results are determined in accordance with South African Statements
of Generally Accepted Accounting Practice and the accounting policies applied
are consistent with those applied in the previous financial year.
REDEFINE INCOME FUND LIMITED
2 Arnold Road, Rosebank, Johannesburg P O Box 471917, Parklands, 2121, South
Africa. Telephone +27 11 283 0110 E-mail: mail@redefine.co.za
Directors: W Cesman* (Chairman), B Azizollahoff8 (CEO), E Ellerine*, J Kron*, S
Shaw-Taylor*, M Wainer* *non-executive 8British
Registration No 1999/018591/06 Share code: RDF ISN Code: ZA000023503
Company secretary: Probity Business Services (Pty) Ltd P O Box 85392,
Emmarentia, 2129. Telephone: +27 11 726 2446
www.redefine.co.za
COMMENTARY
Review of results
Redefine Income Fund Limited ("Redefine") has increased its interest
distribution to 8 cents per linked unit for the second quarter ended 29 February
2004. Distributions for the six months ended 29 February 2004 total 15,5 cents
per linked unit
Headline earnings per linked unit for the six months ended 29 February 2004 are
15,5 cents per linked unit.
Non-current assets have increased to R2,78 billion at 29 February 2004. The Net
Asset Value ("NAV") per linked unit is R2,65 (Feb 2003:R2,66).
Property portfolio
During the period under review Standard Bank Centre Cape Town which Redefine
acquired for R218 million and Motown Durban which it acquired for R39,5 million
were transferred.
16 properties sold to Prima Property Trust were transferred during the period
under review.
The net effect of acquisitions and sales during the period reduces the number of
properties owned by Redefine to 72.
Sectoral spread by revenue comprises 64% commercial, 22% retail and 14%
industrial. It is Redefine"s intention to increase its retail assets to
approximately 35% of its portfolio.
The lease expiry profile is better than the sector average with 41,7% of leases
expiring in 2008 and beyond.
During the period under review 20 045m2 of vacant space was leased and leases in
respect of 33 411m2 were renewed.
At 29 February 2004, 93,4% of the portfolio was leased.
Listed securities portfolio
Redefine"s listed securities portfolio increased during the period under review
by 14,4% as a result of acquisitions and increases in market value. The market
value of the listed securities portfolio at 29 February 2004 was R1,498 billion.
During the period under review Redefine sold 50 million A-Prop units to Corovest
for R40 million in exchange for listed property units in counters which form
part of Redefine"s core listed securities portfolio.
As a result of the A-Prop clawback offer, Redefine will own 9,7% of
A-Prop, reduced from 31,3%.
Redefine acquired 120 million units in Prima Property Trust from the sale of 16
properties. Redefine currently owns 51,3% of Prima Property Trust units, which
it intends to reduce to below 35% in the medium term.
Shops for Africa unitholders approved the sale of all its properties to ApexHi
Properties in return for ApexHi linked units. Accordingly Redefine will receive
approximately 4 million ApexHi A and B linked units in exchange for its Shops
for Africa units.
Interest rate management
Redefine"s borrowings of R1,54 billion represents gearing of 55%, a reduction
from 58% at August 2003, consistent with the long-term strategy to reduce
gearing to below 45%.
The current average all-in interest rate is 11,96%. 72% of the borrowings are
fixed for periods of five and seven years.
Directorate
Messrs D and J Solomon resigned from the Redefine Board on 21 November 2003. Mr
S Shaw-Taylor was appointed non-executive director on 4 December 2003.
Prospects
The Board anticipates that the distribution per linked unit for the quarter
ended 29 February 2004 will at least be maintained for each quarter in the
remainder of the current financial year.
The property portfolio comprises 45% of Redefine"s total assets. Current yield
differentials favour fixed property and therefore Redefine intends to increase
its fixed property holdings.
Interest distribution
Unitholders are advised that interest distribution No. 16 in respect of the
period 1 December 2003 to 29 February 2004 of 8 cents per linked unit has been
declared.
- The last date to trade cum interest Thursday, 22 April 2004
- Linked units will trade ex interest Friday, 23 April 2004
- Record date Friday, 30 April 2004
- Payment of interest distribution No. 16 Monday, 3 May 2004
Unitholders may not dematerialise or re-materialise their linked units between
Friday, 23 April 2004 and Friday, 30 April 2004, both days inclusive.
Wolf Cesman, Chairman Brian Azizollahoff, Chief Executive Officer
Johannesburg
1 April 2004
Date: 01/04/2004 05:00:10 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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