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Arrowhead Properties Limited
(formerly Nervada Trading 13 (Proprietary) Limited) (Registration number 2011/000308/06) JSE code: AWA ISIN: ZAE000158101 JSE code: AWB ISIN: ZAE000158119 ('Arrowhead')
FINANCIAL EFFECTS RELATING TO THE ACQUISITIONS OF PROPERTIES AND WITHDRAWAL OF CAUTIONARY INTRODUCTION
Linked unitholders are referred to the following announcements released on SENS in which it was announced that Arrowhead had concluded agreements for the acquisition of the following properties: - 18 May 2012, acquisition of Midtown Mall, Rustenburg ('Midtown Mall'); - 31 May 2012, acquisition of Sterkspruit Boxer Shopping Centre, Sterkspruit and Tsolo Shopping Centre, Tsolo ('Corovest');
- 18 June 2012, acquisition of 67 Middle Road, Bartlett, Boksburg ('Frutek'); and - 3 July 2012, acquisition of 106 Booysens Road, Johannesburg ('Dunrose'), (collectively, the 'acquisitions').
The purpose of this announcement is to present the financial effects of the acquisitions.
UNAUDITED PRO FORMA FINANCIAL EFFECTS OF THE ACQUISITIONS
The table below sets out the unaudited pro forma financial effects of the acquisitions based on Arrowhead's published interim results for the six months ended 31 March 2012. These financial effects are the responsibility of the directors of Arrowhead and they have been prepared for illustrative purposes only, in order to provide information about the financial position of Arrowhead assuming that the acquisitions had been implemented on 1 October 2011 for purposes of statement of comprehensive income and on 31 March 2012 for purposes of statement of financial position.
Due to its nature, the unaudited pro forma financial effects may not fairly present Arrowhead's financial position, changes in equity, results of operations and cash flows subsequent to the acquisitions.
The unaudited pro forma financial effects have been prepared in accordance with the accounting policies of Arrowhead that were used in the preparation of the published interim results for the 6 months ended 31 March 2012.
The effect of the acquisitions on Arrowhead's distribution per A linked unit and B linked unit is not significant and therefore has not been disclosed.
The effect of the acquisition of Corovest, Frutek and Dunrose on Arrowhead's net asset value and net tangible asset value per A linked unit and B linked unit is not significant and therefore has not been disclosed.
The financial information relating to the acquisitions has been extracted from the respective vendors management accounts 6 month period to 31 March 2012 for Midtown Mall, Corovest and Frutek and 6 month period to 29 February 2012 for Dunrose. The management of Arrowhead is satisfied with the quality of the information contained in these management accounts.
The table below reflects the unaudited pro forma financial effect of the acquisitions on earnings and headline earnings per A and B share on an Arrowhead unitholder:
Before the acquisitions After the acquisitions % change Midtown Mall (13.55) (11.34) 16.3% Frutek (13.55) (12.55) 7.4% Corovest (13.55) (12.72) 6.2% Dunrose (13.55) (11.99) 11.5%
The table below reflects the effect of the acquisitions on actual and weighted average linked units in issue:
Before the After the acquisitions acquisitions Actual A and B linked units in issue:
- Midtown Mall 87 561 123 104 353 576 - Frutek 87 561 123 94 399 681 - Corovest 87 561 123 93 221 500 - Dunrose 87 561 123 98 790 965 Weighted average A and B linked units in issue:
- Midtown Mall 86 200 399 102 992 852 - Frutek 86 200 399 93 038 957 - Corovest 86 200 399 91 860 776 - Dunrose 86 200 399 97 430 241
The table below reflects the unaudited pro forma financial effect of the acquisition of Midtown Mall on the net asset value and net tangible asset value per A and B linked unit:
Before the After the acquisitions % change acquisitions NAV and NTAV per A linked unit 438 452 3.4% NAV and NTAV per B linked unit 438 452 3.4% WITHDRAWAL OF CAUTIONARY
Arrowhead linked unitholders are advised that following the release of the financial effects of the acquisitions, caution is no longer required to be exercised by linked unitholders when dealing in their securities in the company. Johannesburg 18 July 2012 Corporate advisor and sponsor Java Capital
Date: 18/07/2012 01:23:00 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.
