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MSP - MAS PLC - Abridged Audited Consolidated Results for the Year Ended 28

Release Date: 04/05/2011 16:04
Code(s): MSP
Wrap Text

MSP - MAS PLC - Abridged Audited Consolidated Results for the Year Ended 28 February 2011 MAS PLC (Incorporated in the Isle of Man) (Registration number 2893V) (Registered as an external company in the Republic of South Africa) (Registration number 2010/000338/10) JSE share code: MSP ISIN: IM00B4LFGH00 ("the company" or "the group") Abridged Audited Consolidated Results for the Year Ended 28 February 2011 Highlights - NAV per share increased by 40% - Final dividend of 2,10 euro cents per share declared - All assets performing well - Proposed capital raising in second quarter of 2011 Abridged consolidated statement of comprehensive income Audited Audited Year ended Year ended (EUR`000) 28/02/11 28/02/10 Income Rent received 1 711 291 Finance income 330 - Exchange differences 276 82 Expenses Investment adviser fees (235) (72) Operating expenses (689) (826) Fair value adjustments 1 930 (2 115) Results from operating activities 3 322 (2 639) Net interest expense (686) (49) Profit / (loss) before taxation 2 636 (2 688) Taxation (5) - Profit / (loss) after taxation 2 631 (2 688) Other comprehensive income Currency translation adjustment 420 - Total comprehensive income 3 051 (2 688) Earnings / (loss) per share (cents) * 14.1 (78.6) Headline earnings / (loss) per share (cents) ** 14.1 (78.6) Weighted average number of ordinary shares in issue (`000`s) 18 666 3 420 Distributable core income (`000`s) 813 - *There are no potentially dilutive instruments in issue **There are no reconciling items between earnings and headline earnings Abridged consolidated statement of financial position Audited Audited As at As at (EUR`000) 28/02/11 29/02/10 Investment property 30 202 24 773 Current assets 9 120 1 651 Total assets 39 322 26 424 Share capital 19 763 9 310 Retained earnings (451) (2 687) Currency translation reserve 420 - Shareholder equity 19 732 6 623 Long-term loans 17 689 16 953 Financial instruments 853 726 Current liabilities 1 049 2 121 Total liabilities 19 591 19 801 Total equity and liabilities 39 322 26 424 Net asset value per share (cents) 99.8 71.1 Number of shares in issue (`000`s) 19 763 9 310 Abridged consolidated statement of cash flows Audited Audited Year ended Year ended
(EUR`000) 28/02/11 29/02/10 Operating cash flows 1 568 (340) Investing activities (3 337) (24 020) Financing activities - debt and capital raised 7 409 25 868 Cash and equivalents at the beginning of the year 1 528 21 Currency translation differences (556) - Cash and equivalents at the end of the year 6 612 1 528 Abridged consolidated statement of changes in equity Currency Audited Share Retained translation (EUR`000) capital earnings reserve Total 28 February 2009 0.1 1 - 1 Issue of shares 9 310 - - 9 310 Loss for the year - (2 688) - (2 688) 28 February 2010 9 310 (2 687) - 6 623 Issue of shares 10 453 - - 10 453 Profit for the year - 2 631 - 2 631 Interim dividend paid - (396) - (396) Currency translation adjustment - - 420 420 28 February 2011 19 763 (451) 420 19 732 Supplementary information Reconciliation of profit after taxation to distributable core income Year ended (EUR`000) 28/02/11 Profit after taxation 2 631 Adjusted for Fair value adjustments (1 930) Unrealised exchange differences (239) Fundraising and structure costs 268 731 Non-distributable interest expense 82 Distributable core income 813 Commentary MAS plc is a real estate investment company with a portfolio of commercial properties in Western Europe. It aims to provide investors with a sustainable attractive euro denominated dividend. The current investment focus is in Germany, Switzerland and the United Kingdom. The company has its primary listing on the Euro MTF market of the Luxembourg Stock Exchange and a secondary listing on the Alternative Exchange of the JSE. Reporting currency The company`s results are reported in euro. Business review The company owns eight properties: the Aldi portfolio of six properties, the purpose-built Swiss headquarters of the logistics company DPD, and a student residential development in Birmingham. Net asset value per share (NAV/share) increased 40% over the previous year. This is driven by increases in valuations across all properties, but in particular by the value uplift in the University of Birmingham student property development, which reflects the quality of asset selection and management by the Investment Adviser. Aldi portfolio The acquisition of the Aldi portfolio in Baden-Wurttemberg in Germany was completed in December 2009. The properties are all performing well and in line with expectations, generating rental income for the year of EUR 732 108. All of the debt on the portfolio has been hedged for the full 20-year term of the lease. The valuation of the portfolio at EUR 10,06 million was independently performed by DTZ at 28 February 2011. DPD property The DPD property, a logistics and office centre, was acquired in January 2010 and is located in a logistics hub about 20 km outside the Zurich city centre in Switzerland. This property has also performed in line with expectations, generating rental income for the year of EUR 978 858. 70% of the debt on this investment is hedged for the full 15-year term of the lease. The valuation of the property at CHF 21,75 million was independently performed by Wuest & Partner at 28 February 2011, and compares with an acquisition price of CHF 20,5 million just over a year ago. Birmingham student development The development site has full planning permission for a 67-unit development targeted at students at the University of Birmingham. The University has committed itself to a three-year nomination agreement guaranteeing occupancy levels of 97%. The development is progressing on schedule and construction is expected to be completed in time for the autumn intake of students in September 2011, at which time the property will start generating income. Savills independently valued the development at GBP 2,7 million. Opportunistic loans As part of its strategy to manage its resources optimally, MAS plc has also granted fully-secured high-interest loans using excess cash that is earmarked for investment. Interest on these loans closely matched the returns generated on the property portfolio and significantly outperformed investment rates for cash in the market, demonstrating the resourceful approach taken by the Investment Adviser to create shareholder value. Interest on these loans totalled EUR 291 537 during the year. Prospects The tenants in our current portfolio continue to trade well. In addition, the progress on the student residential development in Birmingham is encouraging and in line with our projections. Dividend The directors have declared a final dividend for the year of 2,10 euro cents per share. This brings the total distribution for the year to 4,15 euro cents per share, which reflects a yield of 4,15% on the issue price of EUR 1 of the capital raised. In line with its long-term planning, MAS plc expects to build on this in the coming reporting periods as its portfolio matures further. Details and timing of the final dividend will be published in due course. Proposed capital raising MAS plc proposes raising capital in the second quarter of 2011, subject to compliance with regulatory requirements in South Africa, Luxembourg and the Isle of Man. The capital will be deployed to make acquisitions of properties that diversify and enhance the company`s portfolio and income generation and the increase in issued shares will improve liquidity for shareholders. MAS plc has received in-principle institutional capital commitments of R200 million. Basis of preparation These results have been prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34 - Interim Financial Reporting, and the Listings Requirements of the JSE Limited. Accounting policies The financial statements on which these abridged results have been based, have been audited by the group`s auditors, KPMG Audit LLC, and their unqualified audit report is available on request from the company secretary and will be released together with the full annual report. The accounting policies adopted are consistent with those of the previous year. 4 May 2011 South African sponsor: Java Capital Date: 04/05/2011 16:04:01 Supplied by www.sharenet.co.za 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 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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