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OAS - Oasis - Final abridged audited results and income distribution
declaration
Oasis Crescent Property Fund
(Incorporated in the Republic of South Africa)
(Registration number 2003/012266/06)
Share code: OAS ISIN: ZAE000074332
("Oasis" or "the Fund")
Final abridged audited results and income distribution declaration
The directors of Oasis Crescent Property Fund Managers Limited ("OCPFM"),
the management company of the Oasis Crescent Property Fund (the "Fund"),
present the abridged audited results of the Fund for the year ended 31
March 2011 as follows:
Statement of financial position as at 31 March 2011
2011 2010
R`000 R`000
Assets
Non-current assets 519 746 478 222
Investment properties 372 812 364 308
Property, plant and equipment 30 42
Straight-line lease accrual 10 458 10 105
Available-for-sale financial assets 136 446 103 767
Current assets 35 548 41 775
Trade receivables 4 108 4 034
Other receivables 2 723 4 347
Financial assets at fair value
through profit or loss 21 790 -
Cash and cash equivalents 6 927 33 394
Total assets 555 294 519 997
Unitholders` funds and liabilities
Unitholders` funds 529 192 494 599
Capital of the Fund 414 809 402 487
Retained income 449 -
Non-distributable reserve 117 331 108 581
Fair value loss on available-for-
sale financial assets (3 397) (16 469)
Current liabilities 26 102 25 398
Trade payables 4 063 3 086
Accruals 206 249
Other payables 1 324 1 585
Trade payables to related parties 47 13
Unitholders for distribution 20 285 20 155
Non-permissible income available
for
dispensation 177 310
Total unitholders` funds and
liabilities 555 294 519 997
NAV (per unit) 1 376 cents 1 320 cents
Statement of comprehensive income for the year ended 31 March 2011
2011 2010
R`000 R`000
Revenue 57 904 56 382
Rental and related income 50 749 49 161
Income from investments excluding
non-permissible income 6 802 4 981
Straight-lining of lease income 353 2 240
Expenses 20 448 17 929
Property expenses 17 414 15 302
Service charges 2 363 2 202
Other operating expenses 671 425
Net income from rentals and
investments 37 456 38 453
Realised gain on sale of available-
for-sale financial assets - 7
Fair value adjustment to investment
properties excluding straight-
lining of lease income 8 397 16 752
Fair value adjustment to investment
properties 8 750 18 992
Straight-lining of lease income (353) (2 240)
Operating profit for the year 45 853 55 212
Net non-permissible investment
income 208 796
Non-permissible investment income
received 214 809
Interest paid (6) (13)
Net profit for the year 46 061 56 008
Other comprehensive income
Fair value gain on available-for-
sale financial assets 13 072 14 227
Total comprehensive income for
the year 59 133 70 235
Basic earnings per unit including
non-permissible income (cents) 121.8 156.9
Reconciliation of distributable income for the year ended 31 March 2011
2011 2010
R`000 R`000
Reconciliation of distributable
income:
Rental and related income 50 749 49 161
Less: Property expenses (17 414) (15 302)
Property operating income 33 335 33 859
Investment income 6 567 5 790
Less: Investment expenses (6) (13)
Investment operating income 6 561 5 777
Service charges and other operating
expenses (3 034) (2 627)
Distributable income including
non-permissible income 36 862 37 009
Non-permissible rental income (1 241) (2 035)
Non-permissible interest income (199) (739)
Distributable income excluding
non-permissible income 35 422 34 235
Distribution including
non-permissible income (cents) 97.4 103.7
Interim distribution per
unit (cents) 49.5 50.8
Final distribution per unit (cents) 47.9 52.9
Additional information:
Headline earnings and diluted
headline earnings per unit
including non-permissible
income (cents) 99.6 110.0
Distribution per unit including non-
permissible income (cents) 97.4 103.7
Distribution per unit excluding non-
permissible income (cents) 93.6 95.9
Weighted average units in issue 37 832 250 35 694 283
Units in issue at the end of
the year 38 448 017 37 462 790
Statement of changes in unitholders` funds for the year ended 31 March
2011
Non- Avail-
Capital distri- able-for-
of the butable sale
Fund reserve reserve
R`000 R`000 R`000
Balance at 1 360 931 89 589 (30 703)
April 2009
Net profit
for the year
ended 31 - - -
March 2010
Other
comprehensive
income
Fair value
gain on
available-for-
sale
financial - - 14 227
assets
Transfer to
available-
for-sale - - 7
reserve
Total
comprehensive
income for
the year
31 March 2010 - - 14 234
Issue of 22 410 - -
units for
cash
Issue of
units in lieu
of 21 107 - -
distribution
Transaction
costs for
issue of new (265) - -
units
Transfer to
non-
distributable - 18 992 -
reserve
Distribution
received
in advance (1 696) - -
Distribution
to
unitholders - - -
Dispensation
of non-
permissible - - -
income
Balance at 1 402 487 108 581 (16 469)
April 2010
Net profit
for the year
ended 31 - - -
March 2011
Other
comprehensive
income
Fair value
gain on
available-for-
sale
financial - - 13 072
assets
Total
comprehensive
income for
the year
31 March 2011 - - 13 072
Issue of
units in lieu
of 13 094 - -
distribution
Transaction
costs for
issue of new (195) - -
units
Transfer to
non-
distributable - 8 750 -
reserve
Distribution
received
in advance (577) - -
Distribution
to
unitholders - - -
Dispensation
of non-
permissible - - -
income
Balance at 31 414 809 117 331 (3 397)
March 2011
Table continues:...
Retained
income Total
R`000 R`000
Balance at 1 April - 419 817
2009
Net profit for the
year
ended 31 March 2010 56 008 56 008
Other comprehensive
income
Fair value gain on
available-for-sale
financial assets - 14 227
Transfer to
available-
for-sale reserve (7) -
Total comprehensive
income for the year
31 March 2010 56 001 70 235
Issue of units for - 22 410
cash
Issue of units in
lieu
of distribution - 21 107
Transaction costs
for
issue of new units - (265)
Transfer to non-
distributable (18 992) -
reserve
Distribution
received
in advance 1 696 -
Distribution to
unitholders (35 931) (35 931)
Dispensation of non-
permissible income (2 774) (2 774)
Balance at 1 April - 494 599
2010
Net profit for the
year
ended 31 March 2011 46 061 46 061
Other comprehensive
income
Fair value gain on
available-for-sale
financial assets - 13 072
Total comprehensive
income for the year
31 March 2011 46 061 59 133
Issue of units in
lieu
of distribution - 13 094
Transaction costs
for
issue of new units - (195)
Transfer to non-
distributable (8 750) -
reserve
Distribution
received
in advance 577 -
Distribution to
unitholders (35 999) (35 999)
Dispensation of non-
permissible income (1 440) (1 440)
Balance at 31 March 449 529 192
2011
Statement of cash flows for the year ended 31 March 2011
2011 2010
R`000 R`000
Cash flows from operating activities
Net profit for the period 46 061 56 008
Adjusted for:
Non-permissible investment income
received (214) (809)
Interest paid 6 13
Depreciation 12 11
Provision for receivables impairment 94 33
Straight-line lease accrual (353) (2 240)
Realised gain on sale of available-for-
sale financial assets - (7)
Fair value adjustment on financial
assets
at fair value through profit or loss (449) -
Fair value adjustment to investment
properties excluding straight-lining
of lease income (8 397) (16 752)
36 760 36 257
Decrease/(increase) in current assets
Trade receivables (168) (4)
Other receivables 1 624 (1 614)
(Decrease)/increase in current
liabilities
Trade payables 977 (552)
Accruals (43) (110)
Other payables (261) 794
Trade payables to related parties 34 (226)
Cash generated from operations 38 923 34 545
Interest paid (6) (13)
Non-permissible investment income 214 809
received
Unitholders for distribution (22 754) (11 782)
Non-permissible income dispensed (1 594) (2 518)
Net cash inflow from operating 14 783 21 041
activities
Cash flows from investing activities
Acquisition of available-for-sale
financial assets (19 607) (30 376)
Acquisition of financial assets at fair
value through profit or loss (31 342) -
Additions to investment properties (107) (2 120)
Proceeds from sale of financial assets
at fair value through profit or loss 10 001 -
Net cash outflow from investing (41 055) (32 496)
activities
Cash flows from financing activities
Proceeds from issue of units - 22 410
Transaction cost (195) (265)
Net cash (outflow)/inflow from
financing
activities (195) 22 145
Net (decrease)/increase in cash and
cash equivalents (26 467) 10 690
Cash and cash equivalents
At beginning of period 33 394 22 704
At end of period 6 927 33 394
Segmental information for the year ended 31 March 2011
Indus-
Retail Offices trial
R`000 R`000 R`000
Segment revenue
Property income
Rental and
related income 21 996 8 766 19 987
Income from
investments
excluding non-
permissible
income
Dividend income
offshore - - -
Permissible
investment
income -
domestic - - -
Fair value
adjustment
financial
assets at fair
value through
profit or loss - - -
21 996 8 766 19 987
Segment expense
Property
expenses 11 638 2 651 3 125
Service charges - - -
Other operating
expenses - - -
11 638 2 651 3 125
Realised gain
on sale of
available-for-
sale financial
assets - - -
Segment result
Operating
profit/(loss) 10 358 6 115 16 862
Net finance
income
Net interest
received - - -
Net
profit/(loss)
before
straight-line
lease income
and fair value
change to
investment
properties 10 358 6 115 16 862
Straight-lining
of lease
income (47) 315 85
Fair value
adjustment to
investment
properties (12 863) 10 365 10 895
Net
profit/(loss)
after
straight-line
lease income
and fair
value change
to investment
properties (2 552) 16 795 27 842
Segment assets
Investment
properties 140 651 79 306 152 855
Property,
plant and
equipment 30 - -
Straight-line
lease accrual 3 839 774 5 845
Available-for-
sale financial
assets - - -
Trade
receivables 1 553 121 411
Other
receivables 261 291 148
Financial
assets at
fair value
through profit
or loss - - -
Cash and cash
equivalents - - -
146 334 80 492 159 259
Segment
liabilities
Trade payables 2 509 429 687
Accruals - - -
Other payables 675 - 400
Trade payables
to related
parties 10 - 37
Unitholders for
distribution - - -
Non-permissible
income
available for
dispensation - - -
3 194 429 1 124
Net current
assets (1 380) (17) (565)
Capital
expenditure - - 107
Table continues:...
Invest- Cor-
ments porate Total
R`000 R`000 R`000
Segment revenue
Property income
Rental and
related income - - 50 749
Income from
investments
excluding non-
permissible
income
Dividend income
offshore 4 978 - 4 978
Permissible
investment
income -
domestic 1 375 - 1 375
Fair value
adjustment
financial
assets at fair
value through
profit or loss 449 - 449
6 802 - 57 551
Segment expense
Property
expenses - - 17 414
Service charges - 2 363 2 363
Other operating
expenses - 671 671
- 3 034 20 448
Realised gain
on sale of
available-for-
sale financial
assets - - -
Segment result
Operating
profit/(loss) 6 802 (3 034) 37 103
Net finance
income
Net interest
received 208 - 208
Net
profit/(loss)
before
straight-line
lease income
and fair value
change to
investment
properties 7 010 (3 034) 37 311
Straight-lining
of lease
income - - 353
Fair value
adjustment to
investment
properties - - 8 397
Net
profit/(loss)
after
straight-line
lease income
and fair
value change
to investment
properties 7 010 (3 034) 46 061
Segment assets
Investment
properties - - 372 812
Property,
plant and
equipment - - 30
Straight-line
lease accrual - - 10 458
Available-for-
sale financial
assets 136 446 - 136 446
Trade
receivables 2 023 - 4 108
Other
receivables - 2 023 2 723
Financial
assets at
fair value
through profit
or loss 21 790 - 21 790
Cash and cash
equivalents 6 927 - 6 927
167 186 2 023 555 294
Segment
liabilities
Trade payables - 438 4 063
Accruals - 206 206
Other payables - 249 1 324
Trade payables
to related
parties - - 47
Unitholders for
distribution - 20 285 20 285
Non-permissible
income
available for
dispensation - 177 177
- 21 355 26 102
Net current
assets 30 740 (19 332) 9 446
Capital
expenditure - - 107
Segmental information
for the year ended 31 March 2010
Indus-
Retail Offices trial
R`000 R`000 R`000
Segment
revenue
Property
income
Rental and
related income 23 849 7 495 17 817
Income from
investments
excluding non-
permissible
income
Dividend
income
offshore - - -
Permissible
investment
income -
domestic - - -
Fair value
adjustment
financial
assets at fair
value through
profit or loss - - -
23 849 7 495 17 817
Segment
expense
Property
expenses 10 176 2 725 2 401
Service - - -
charges
Other
operating
expenses - - -
10 176 2 725 2 401
Realised gain
on
sale of
available-for-
sale financial
assets - - -
Segment result
Operating
profit/(loss) 13 673 4 770 15 416
Net finance
income
Net interest
received - - -
Net
profit/(loss)
before
straight-line
lease income
and fair value
change to
investment
properties 13 673 4 770 15 416
Straight-
lining
of lease
income 969 (417) 1 688
Fair value
adjustment to
investment
properties 185 7 777 8 790
Net
profit/(loss)
after
straight-line
lease income
and fair value
change to
investment
properties 14 827 12 130 25 894
Segment assets
Investment
properties 161 972 60 483 141 853
Property,
plant
and equipment 42 - -
Straight-line
lease accrual 3 868 477 5 760
Available-for-
sale financial
assets - - -
Trade
receivables 1 649 144 396
Other
receivables 243 13 308
Cash and cash
equivalents - - -
167 774 61 117 148 317
Segment
liabilities
Trade payables 2 492 154 183
Accruals - - -
Other payables 1 093 33
Trade payables
to related
parties 13 - -
Unitholders
for
distribution - - -
Non-
permissible
income
available for
dispensation - - -
3 598 154 216
Net current
assets (1 706) 3 488
Capital
expenditure 2 083 - 37
Table Continues:...
Invest- Cor-
ments porate Total
R`000 R`000 R`000
Segment
revenue
Property
income
Rental and
related income - - 49 161
Income from
investments
excluding non-
permissible
income
Dividend
income
offshore 4 453 - 4 453
Permissible
investment
income -
domestic 528 - 528
Fair value
adjustment
financial
assets at fair
value through
profit or loss - - -
4 981 - 54 142
Segment
expense
Property
expenses - - 15 302
Service - 2 202 2 202
charges
Other
operating
expenses - 425 425
- 2 627 17 929
Realised gain
on
sale of
available-for-
sale financial
assets 7 - 7
Segment result
Operating
profit/(loss) 4 988 (2 627) 36 220
Net finance
income
Net interest
received 796 - 796
Net
profit/(loss)
before
straight-line
lease income
and fair value
change to
investment
properties 5 784 (2 627) 37 016
Straight-
lining
of lease
income - - 2 240
Fair value
adjustment to
investment
properties - - 16 752
Net
profit/(loss)
after
straight-line
lease income
and fair value
change to
investment
properties 5 784 (2 627) 56 008
Segment assets
Investment
properties - - 364 308
Property,
plant
and equipment - - 42
Straight-line
lease accrual - - 10 105
Available-for-
sale financial
assets 103 767 - 103 767
Trade
receivables - 1 845 4 034
Other
receivables 3 753 30 4 347
Cash and cash
equivalents 33 394 - 33 394
140 914 1 875 519 997
Segment
liabilities
Trade payables - 256 3 085
Accruals - 249 249
Other payables - 459 1 585
Trade payables
to related
parties - - 13
Unitholders
for
distribution - 20 155 20 155
Non-
permissible
income
available for
dispensation - 310 310
- 21 429 25 397
Net current
assets 37 147 (19 554) 16 378
Capital
expenditure - - 2 120
Commentary
1. Basis of preparation
The abridged financial information of the Fund for the year ended 31
March 2011 has been prepared in accordance with IAS 34 - Interim
Financial Reporting and in compliance with the Listing Requirements of
the JSE Limited. The abridged financial information does not include all
of the information required by IFRS for full 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.
The Fund`s investment manager follows the guidance of IAS 39 to determine
when an available-for-sale asset is impaired. The determination requires
significant judgment. In making this judgement, the Fund`s investment
manager evaluates, among other factors, the duration and extent to which
the fair value of an investment is less than cost and the financial
health and business outlook for the investee, including factors such as
industry and sector performance. The Fund`s investment manager does not
consider the available-for-sale investment to be impaired. If the
available-for-sale investments were to be impaired this would result in a
movement between non-distributable reserves. Furthermore, this would not
have an impact on the distribution per unit.
The Fund`s external auditors, PricewaterhouseCoopers Inc. have audited
the abridged financial report and annual financial statements for the
year ended 31 March 2011.Copies of their unqualified audit reports are
available on request at the Fund`s registered office.
2. Financial results
2011 2010
Distribution per unit including non-permissible 97.4 103.7
income(cents)
Non-permissible rental per unit (cents) (3.3) (5.7)
Non-permissible interest per unit (cents) (0.5) (2.1)
Distribution per unit excluding non-permissible 93.6 95.9
income(cents)
Property portfolio valuation (Rm) 383.3 374.4
Investments portfolio valuation (Rm) 158.2 103.8
Cash and cash equivalents (Rm) 6.9 33.4
Net asset value per unit (cents) 1 376 1 320
Listed market price at year end (cents) 1 290 1 230
Since listing, the focus of OCPFM has been to:
build a portfolio of quality properties
attract high quality tenants
investment in listed global property for scalability, geographical and
currency diversification
The Fund has delivered solid and consistent performance over the years.
Distribution per unit excluding non-permissible income decreased by 2%
from 95.9 cents to 93.6 cents. NAV has improved by 4.3% reaching 1 376
cents per unit (2010: 1 320 cents) despite the strengthening of the Rand,
lower interest rates on cash balances and repositioning of the retail
portfolio. The Fund has delivered a total return of 12.5% compared to
inflation of 4.1% for the year. Actual annualized yield of the property
portfolio is 8.7% (2010: 9.0%)
The Fund has continued to deliver a competitive return relative to
inflation:
2011 2010 2009 2008 2007
% % % % %
Oasis Crescent Property
Fund actual
return 12.5 9.5 8.9 7.5 11.5
Inflation 4.1 5.1 11.2 7.5 4.8
Notes:
i. Performance based on total return (capital and distribution excluding
non-permissible income).
ii. The return was realised at low risk due to no debt.
During the current reporting period the Fund issued 0.99 million units in
lieu of distribution. These units were issued in November 2010 at 1,329
cents per unit.
3. Portfolio valuation
The investment properties were independently valued by Mills Fitchet
Magnus Penny (Pty) Ltd on 31 March 2011 and the portfolio was valued at
R383.3 million.
4. Capital commitments
As at 31 March 2011, there is a capital commitment of R12.3 million
(2010: Nil) relating to the acquisition of a property to be funded from
existing cash resources.
5. Outlook
Improving demand, together with supply constraints and the lack of major
new developments within the footprint of the Fund`s portfolio, provide a
positive outlook for the rental growth. We believe that the levels of
rentals have now reached its lowest point and that going forward the Fund
should be able to take an advantage of an upturn in rentals.
6. 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.
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
2011 2010
R`000 R`000
Service charge paid to Oasis Crescent Property
Fund
Managers Limited 2 363 2 202
Property management fees paid to Oasis Crescent
Property Fund Managers Limited 879 916
Rental, related income and deposit from Oasis
Group
Holdings (Proprietary) Limited at the
Ridge@Shallcross 320 292
Related party balances
Trade payables to Oasis Group Holdings
(Proprietary)
Limited 47 6
Trade payables to Oasis Crescent Property Fund
Managers Limited - 7
47 13
7. Income distribution
Declaration announcement in respect of income distribution for the 6
months ended 31 March 2011
Notice is hereby given that a final income distribution, after non-
permissible income for the six-month period ended 31 March 2011 of 4
616.40 cents per unit (in aggregate) for every 100 (one hundred) units so
held, has been declared payable to unitholders recorded in the register
of OCPF at close of business on Friday, 3 June 2011, and the concomitant
unit distribution of 3.35 units at 1 376 cents per unit (in aggregate)
for every 100 units so held, which such unit holders may elect to receive
in lieu of the aforementioned income distribution, and which income
distribution comprises of the following 3 (three) payments, namely:
Cents Cents per Scrip election
per unit 100 units (per 100 units)
Income category
(a) Property income 39.7668 3 976.68 2.89
(b) Offshore dividend 4.6531 465.31 0.34
income
(c) Domestic
permissible
investment income 1.7441 174.41 0.12
Total 46.1640 4 616.40 3.35
(a)-(c) collectively referred to as the "income distribution" and/or the
"unit distribution" as the case may be.
Unitholders should take note of the corporate timetable as set out below
in respect of the abovementioned income and unit distribution and the
election in terms thereof.
Salient dates and times 2011
Declaration announcement on SENS of
income
distribution and right of election to
receive
unit distribution 11 May,
Wednesday
Circular and form of election posted to
unitholders 13 May, Friday
Finalisation announcement on SENS in
respect of
income distribution and right of election
to
receive unit distribution 20 May, Friday
Last day to trade in order to be eligible
for
the income distribution/unit distribution 27 May, Friday
Trading commences ex-entitlement 30 May, Monday
Listing of maximum possible number of
unit
distribution units at commencement of 30 May, Monday
trade on
Closing date for the election of unit
distribution or scrip issue at 12:00 3 June, Friday
Record date for income distribution 3 June, Friday
Income distribution cheques and/or unit
certificates posted and CSDP/broker
accounts
updated 6 June, Monday
Announcement of the results of the income
distribution on SENS 6 June, Monday
Adjustment of number of new units listed
on
or about 8 June,
Wednesday
Note:
Units may not be dematerialised or rematerialised between Monday, 30 May
2011 and Friday, 3 June 2011 both days inclusive.
All times quoted are South African times.
Dematerialised unit holders are requested to ascertain from their broker
or CSDP as to the cut-off time required by them in order to advise the
transfer secretaries of their election.
If no election is made, unitholders will receive the income distribution.
A circular will be posted out to unitholders on or about Friday, 13 May
2011, in respect of the income and unit distribution.
Change in directorship
Dr. Yousuf Mahomed has been appointed as the Lead Independent Non-
executive Director of OCPFM with effect from 10 May 2011.
Cape Town
11 May 2011
Designated Adviser
PSG Capital (Pty) Limited
Date: 11/05/2011 17:53:47 Supplied by www.sharenet.co.za
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