Wrap Text
Reviewed interim results for the six months ended 30 September 2012
Oasis Crescent Property Fund
A property fund created under the Oasis Crescent Property Trust Scheme
registered in terms of the Collective Investment Schemes Control Act
(Act 45 of 2002) JSE code: OAS
Share code: OAS
ISIN: ZAE000074332
("Oasis" or "the Fund")
Reviewed interim results for the six months ended 30 September 2012
Condensed statement of comprehensive income for the 6 months ended 30 September 2012
Reviewed Reviewed Audited
6 months 6 months 12 months
to 30 to 30 to 31
September September March
2012 2011 2012
R'000 R'000 R'000
Revenue 28 096 29 461 59 471
Rental and related income 25 394 26 004 52 117
Income from investments excl non-permissible
income 5 871 4 346 8 276
Straight-lining of lease income (3 169) (889) (922)
Expenses 12 291 11 589 23 714
Property expenses 10 254 9 925 20 343
Service charges 1 338 1 269 2 577
Other operating expenses 699 395 794
Net income from rentals and investments 15 805 17 872 35 757
Fair value adjustment to investment properties
excluding straight-lining of lease income 3 169 889 10 679
Fair value adjustment to investment properties - - 9 757
Straight-lining of lease income 3 169 889 922
Operating profit for the period 18 974 18 761 46 436
Net non-permissible investment income 46 334 514
Non-permissible investment income received 69 334 519
Interest paid (23) - (5)
Net profit for the period 19 020 19 095 46 950
Other comprehensive income
Fair value gain/(loss) on available-for-sale
financial assets 23 290 3 212 14 454
Total comprehensive income for the period 42 310 22 307 61 404
Basic earnings per unit including non-
permissible income (cents) 46.75 48.72 118.00
Reconciliation of distributable income for the 6 months ended 30 September 2012
Rental and related income 25 394 26 004 52 117
Less: Property expenses (10 254) (9 925) (20 343)
Property operating income 15 140 16 079 31 774
Investment income 5 940 4 680 8 949
Less: Investment expenses (23) - (5)
Investment operating income 5 917 4 680 8 944
Add: Fair value adjustment on financial assets
at fair value through profit or loss (367) 28 -
Service charges and other operating expenses (2 037) (1 664) (3 371)
Distributable income including non-permissible
income 18 653 19 123 37 347
Non-permissible rental income (267) (358) (641)
Non-permissible interest income (95) (306) (474)
Distributable income excluding non-permissible
income 18 291 18 459 36 232
Distribution per unit including non-
permissible income (cents) 45.9 48.8 93.9
Interim distribution per unit (cents) 45.9 48.8 48.8
Final distribution per unit (cents) - - 45.1
Additional information:
Headline earnings and diluted headline
earnings per unit including non-permissible
income (cents) 39.0 46.5 91.2
Distribution per unit including non-
permissible income (cents) 45.9 48.8 93.9
Distribution per unit excluding non-
permissible income (cents) 45.0 47.1 91.1
Weighted average units in issue 40 685 181 39 191 861 39 786 095
Units in issue at the end of the period 41 097 679 39 592 393 40 665 493
Headline earnings and distribution income Reconciliation
Net profit for the period 19 020 19 095 46 950
Adjusted for:
Fair value adjustment to investment properties (3 169) (889) (10 679)
Headline earnings 15 851 18 206 36 271
Less: Fair value adjustments on financial
assets at fair value through profit or loss (367) 28 154
Less: Straight-line lease accrual 3 169 889 922
Distribution income including non-permissible
income 18 653 19 123 37 347
Non-permissible rental income (267) (358) (641)
Non-permissible interest income (95) (306) (474)
Distribution income excluding non-permissible
income 18 291 18 459 36 232
Distribution per unit excluding non-
permissible income (cents) 45.0 47.1 91.1
Interim distribution per unit (cents) 45.0 47.1 47.1
Final distribution per unit (cents) - - 44.0
Condensed statement of financial position as at 30 September 2012
Reviewed Reviewed Audited
30 30 31
September September March
2012 2011 2012
R'000 R'000 R'000
Assets
Non-current assets 590 749 533 296 563 152
Investment properties 388 587 375 075 386 964
Property plant and equipment 43 24 18
Straight-line lease accrual 6 750 9 569 9 536
Available-for-sale financial assets 195 369 148 628 166 634
Current assets 55 840 41 571 46 497
Trade receivables 3 054 3 737 3 431
Other receivables 2 411 2 912 2 469
Financial assets at fair value through
profit or loss 37 448 16 972 35 578
Cash and cash equivalents 12 927 17 950 5 019
Total assets 646 589 574 867 609 649
Unitholders' funds and liabilities
Unitholders' funds 612 732 549 634 585 234
Capital of the Fund 453 803 432 067 446 794
Retained income 663 421 295
Nondistributable reserve 123 919 117 331 127 088
Fair value profit/(loss) on available-for-sale
assets 34 347 (185) 11 057
Current liabilities 33 857 25 233 24 415
Trade payables 13 405 4 846 4 437
Accruals 198 177 233
Other payables 933 837 957
Trade payables to related parties 431 164 446
Unitholders for distribution 18 751 18 945 18 229
Non-permissible income available for
dispensation 139 264 113
Total unitholders' funds and liabilities 646 589 574 867 609 649
NAV (in cents per unit) 1 491 1 388 1 439
Condensed statement of changes in unitholders' funds for the 6 months ended 30 September 2012
Non- Available-
Capital of distributable for-sale Retained
the Fund reserve reserve income Total
R'000 R'000 R'000 R'000 R'000
Balance at 1 April
2011 414 809 117 331 (3 397) 449 529 192
Net profit for the
period ended 30
September 2011 - - - 19 095 19 095
Other Comprehensive
Income
Fair value gain on
available-for-sale
financial assets - - 3 212 - 3 212
Total Comprehensive
Income for the period
30 September 2011 - - 3 212 19 095 22 307
Issue of units in lieu
of distribution 17 588 - - - 17 588
Transaction costs for
issue of new units (141) - - - (141)
Distribution received
in advance (189) - - 189 -
Transfer to non-
distributable reserve - - - - -
Distribution to
unitholders - - - (18 647) (18 647)
Dispensation of non-
permissible income - - - (665) (665)
Balance at 30
September 2011 432 067 117 331 (185) 421 549 634
Net profit for the
period ended 31 March
2012 - - - 27 855 27 855
Other Comprehensive
Income
Fair value gain on
available-for-sale
financial assets - - 11 242 - 11 242
Transfer to available-
for-sale reserve - - - - -
Total Comprehensive
Income for the period
31 March 2012 - - 11 242 27 855 39 097
Issue of units for
cash - - - - -
Issue of units in lieu
of distribution 14 908 - - - 14 908
Transaction costs for
issue of new units (66) - - - (66)
Transfer to non-
distributable reserve - 9 757 - (9 757) -
Distribution received
in advance (115) - - 115 -
Distribution to
unitholders - - - (17 889) (17 889)
Dispensation of non-
permissible income - - - (450) (450)
Balance at 1 April
2012 446 794 127 088 11 057 295 585 234
Net profit for the
period ended 30
September 2012 - - - 19 020 19 020
Other Comprehensive
Income
Fair value gain on
available-for-sale
financial assets - - 23 290 - 23 290
Total Comprehensive
Income for the period
30 September 2012 - - 23 290 19 020 42 310
Issue/(repurchase) of
units (9 144) - - - (9 144)
Issue of units in lieu
of distribution 16 524 - - - 16 524
Transaction costs for
issue/(repurchase) of
new units (185) - - - (185)
Transfer to non-
distributable reserve - (3 169) - - (3 169)
Distribution received
in advance (186) - - 186 -
Distribution to unit
holders - - - (18 476) (18 476)
Dispensation of non-
permissible income - - - (362) (362)
Balance at 30
September 2012 453 803 123 919 34 347 663 612 732
Condensed statement of cash flows for the 6 months ended 30 September 2012
Reviewed Reviewed Audited
6 months to 6 months to 12 months to
30 September 30 September 31 March
2012 2011 2012
R'000 R'000 R'000
Cash flows from operating
activities
Net profit for the period 19 020 19 095 46 950
Adjusted for:
Non-permissible investment income
received (69) (334) (519)
Interest paid 23 - 5
Depreciation 6 6 12
Provision for receivables
impairment (579) (27) (468)
Straight-line lease accrual 3 169 889 922
Lease incentives 383 - -
Realised gain on financial assets
at fair value throught
profit or loss (58) (120) -
Fair value adjustment on financial
assets at fair value through profit
or loss (367) 28 154
Fair value adjustment to investment
properties excluding straight-
lining of lease income (3 169) (889) (10 679)
17 593 18 648 36 377
(Increase)/decrease in current
assets
Trade receivables 956 398 1 145
Other receivables 58 (189) 254
Increase/(decrease) in current
liabilities
Trade payables (176) 783 374
Accruals (35) (29) 27
Other payables (24) (487) (367)
Trade payables to related parties (15) 117 399
Cash generated from operations 18 357 19 241 38 209
Interest paid (23) - (5)
Non-permissible investment income
received 69 334 519
Unitholders for distribution (1 430) (2 399) (6 056)
Non-permissible income dispensed (336) (578) (1 219)
Net cash inflow from operating
activities 16 637 16 598 31 448
Cash flows from investing
activities
Acquisition of available-for-sale
financial assets (5 445) (8 970) (15 734)
Acquisition of financial assets at
fair value through profit or loss (4 445) (1 590) (20 442)
Additions to investment
properties (1 623) (1 374) (3 473)
Proceeds from sale of financial
assets at fair value through
profit or loss 3 000 6 500 6 500
Acquisition of property, plant and
equipment (31) - -
Net cash flow from investing
activities (8 544) (5 434) (33 149)
Cash flows from financing
activities
Transaction costs on issue of new
units (185) (141) (207)
Net cash flow from financing
activities (185) (141) (207)
Net increase /(decrease)in cash and
cash equivalents 7 908 11 023 (1 908)
Cash and cash equivalents
At beginning of period 5 019 6 927 6 927
At end of period 12 927 17 950 5 019
Segment information for the 6 months ended 30 September 2012
Indus- Invest- Corpo-
Retail Offices trial ments rate Total
R'000 R'000 R'000 R'000 R'000 R'000
Segment revenue
Property income
Rental and related
income 12 175 4 768 8 451 - - 25 394
Income from
investments excl
non-permissible
income
Dividend income
offshore - - - 3 605 - 3 605
Permissible
investment income
domestic - - - 1 841 - 1 841
Fair value
adjustment to
financial assets at
fair value through
profit or loss - - - 367 - 367
Realised gain on
financial assets at
fair value through
profit or loss - - - 58 58
12 175 4 768 8 451 5 871 - 31 265
Segment expense
Property expenses 7 310 1 364 1 580 - - 10 254
Service charges - - - - 1 338 1 338
Other operating
expenses - - - - 699 699
7 310 1 364 1 580 - 2 037 12 291
Segment result
Operating
profit/(loss) 4 865 3 404 6 871 5 871 (2 037) 18 974
Net finance income
Net interest
received - - - 46 - 46
Net profit/(loss)
before straight-line
lease income and
fair value
adjustment to
investment
properties 4 865 3 404 6 871 5 917 (2 037) 19 020
Straight-lining of
lease income (2 735) (87) (347) - - (3 169)
Fair value
adjustment to
investment
properties 2 735 87 347 - - 3 169
Net profit/(loss)
after straight-line
lease income and
fair value
adjustment to
investment
properties 4 865 3 404 6 871 5 917 (2 037) 19 020
Segment assets
Investment
properties 169 645 65 344 153 598 - - 388 587
Property, plant and
equipment 43 - - - - 43
Straight-line lease
accrual 1 555 89 5 106 - - 6 750
Available-for-sale
financial assets - - - 195 369 - 195 369
Trade receivables 957 302 287 1 508 - 3 054
Other receivables 284 59 2 - 2 066 2 411
Held-for-trading
investments - - - 37 448 - 37 448
Cash and cash
equivalents - - 12 927 - 12 927
172 484 65 794 158 993 247 252 2 066 646 589
Segment liabilities
Trade payables 3 158 379 667 - 9 201 13 405
Accruals - - - - 198 198
Other payables 660 9 181 - 83 933
Trade payables to
related parties 181 - 78 - 172 431
Unitholders for
distribution - - - - 18 751 18 751
Non-permissible
income available for
dispensation - - - - 139 139
3 999 388 926 - 28 544 33 857
Net segment assets 168 485 65 406 158 067 247 252 (26 478) 612 732
Capital expenditure 373 - 1 250 - - 1 623
Segment information for the 6 months ended 30 September 2011
Indus- Invest- Corpo-
Retail Offices trial ments rate Total
R'000 R'000 R'000 R'000 R'000 R'000
Segment revenue
Property income
Rental and related
income 10 411 4 228 11 365 - - 26 004
Income from
investments excl
non-permissible
Dividend income
offshore - - - 3 050 - 3 050
Permissible
investment income
domestic - - - 1 204 - 1 204
Fair value
adjustment to
financial assets at
fair value through
profit or loss - - - (28) - (28)
Realised gain on
financial assets at
fair value through
profit or loss - - - 120 - 120
10 411 4 228 11 365 4 346 - 30 350
Segment expense
Property expenses 6 202 1 366 2 357 - - 9 925
Service charges - - - - 1 269 1 269
Other operating
expenses - - - - 395 395
6 202 1 366 2 357 - 1 664 11 589
Segment result
Operating
profit/(loss) 4 209 2 862 9 008 4 346 (1 664) 18 761
Net finance income
Net interest
received - - - 334 - 334
Net profit/(loss)
before straight-line
lease income and
fair value
adjustment to
investment
properties 4 209 2 862 9 008 4 680 (1 664) 19 095
Straight-lining of
lease income (135) (555) (199) - - (889)
Fair value
adjustment to
investment
properties 135 555 199 - - 889
Net profit/(loss)
after straight-line
lease income and
fair value
adjustment to
investment
properties 4 209 2 862 9 008 4 680 (1 664) 19 095
Segment assets
Investment
properties 158 567 63 454 153 054 - - 375 075
Property, plant and
equipment 24 - - - - 24
Straight-line lease
accrual 3 754 169 5 646 - - 9 569
Available-for-sale
financial assets - - - 148 628 - 148 628
Trade receivables 1 315 286 991 1 145 - 3 737
Other receivables 366 90 36 - 2 420 2 912
Held-for-trading
investments - - - 16 972 - 16 972
Cash and cash
equivalents - - 17 950 - 17 950
164 026 63 999 159 727 184 695 2 420 574 867
Segment liabilities
Trade payables 2 929 450 1 467 - - 4 846
Accruals - - - - 177 177
Other payables 448 8 167 - 214 837
Trade payables to
related parties 195 2 101 - (134) 164
Unitholders for
distribution - - - - 18 945 18 945
Non-permissible
income available for
dispensation - - - - 264 264
3 572 460 1 735 - 19 466 25 233
Net segment assets 160 454 63 539 157 992 184 695 (17 046) 549 634
Capital expenditure - 63 - - 63
Segment information for the year ended 31 March 2012
Indus- Invest- Corpo-
Retail Offices trial ments rate Total
R'000 R'000 R'000 R'000 R'000 R'000
Segment revenue
Property income
Rental and related
income 22 289 9 718 20 110 - - 52 117
Income from
investments excl
non-permissible
income
Dividend income
offshore - - - 5 693 - 5 693
Permissible
investment income
domestic - - - 2 737 - 2 737
Fair value
adjustment to
financial assets at
fair value through
profit or loss - - - (154) - (154)
22 289 9 718 20 110 8 276 - 60 393
Segment expense
Property expenses 12 753 3 196 4 252 - 142 20 343
Service charges - - - - 2 577 2 577
Other operating
expenses - - - - 794 794
12 753 3 196 4 252 - 3 513 23 714
Segment result
Operating
profit/(loss) 9 536 6 522 15 858 8 276 (3 513) 36 679
Net finance income
Net interest
received - - - 514 - 514
Net profit/(loss)
before straight-line
lease income and
fair value
adjustment to
investment
properties 9 536 6 522 15 858 8 790 (3 513) 37 193
Straight-lining of
lease income 157 (586) (493) - - (922)
Fair value
adjustment to
investment
properties 8 572 2 614 (507) - - 10 679
Net profit/(loss)
after straight-line
lease income and
fair value
adjustment to
investment
properties 18 265 8 550 14 858 8 790 (3 513) 46 950
Segment assets
Investment
properties 164 735 69 882 152 347 - - 386 964
Property, plant and
equipment 18 - - - - 18
Straight-line lease
accrual 3 995 188 5 353 - - 9 536
Available-for-sale
financial assets - - 166 634 - 166 634
Trade receivables 1 382 204 818 1 027 - 3 431
Other receivables 342 88 12 - 2 027 2 469
Financial assets at
fair value through
profit or loss - - - 35 578 - 35 578
Cash and cash
equivalents - - - 5 019 - 5 019
170 472 70 362 158 530 208 258 2 027 609 649
Segment liabilities
Trade payables 2 958 480 816 - 183 4 437
Accruals (14) (4) (10) - 261 233
Other payables 570 2 55 - 330 957
Trade payables to
related parties 115 - 81 - 250 446
Unitholders for
distribution - - - - 18 229 18 229
Non-permissible
income available for
dispensation - - - - 113 113
3 629 478 942 - 19 366 24 415
Net segment assets 166 843 69 884 157 588 208 258 (17 339) 585 234
Capital expenditure 3 192 282 - - - 3 474
Basis of preparation and accounting policies
The interim results of the Fund have been prepared in accordance with International
Financial Reporting Standards (IFRS), as well as the AC 500 Standards, International
Accounting Standard 34 (IAS 34) and the requirements of the Collective Investment Schemes
Control Act of 2002. 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 interim financial statements have been prepared under the revised disclosure
requirements. The Fund's external auditor, PricewaterhouseCoopers Inc. has reviewed the
financial information set out in this report. Their unqualified review report is
available for inspection at the Fund's registered office.
Related party transactions and balances
Identity of the related parties with whom material transactions have occurred
Oasis Crescent Property Fund Managers Limited ("OCPFM") 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 the 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
6 months to 6 months to 12 months
30 September 30 September to 31 March
2012 2011 2012
Related party transactions R'000 R'000 R'000
Service charge paid to Oasis Crescent
Property Fund Managers Limited 1 338 1 269 2 577
Property management fees paid to Oasis
Crescent Property Fund 441 436 858
Managers Limited
Rental and related income paid by Oasis
Group Holdings (Proprietary) Limited
at the Ridge@Shallcross 209 168 390
Related party balances
6 months to 6 months to As at
30 September 30 September 31 March
2012 2011 2012
Related party balance R'000 R'000 R'000
Trade (payables to)/receivables from
Oasis Group Holding (Proprietary) Limited (102) (110) (115)
Trade (payables to)/receivables from Oasis
Crescent Property Fund Managers Limited (329) (54) 331
Trade deposit received from Oasis Group
Holdings (Proprietary) Limited - (64) -
Directors' commentary
Financial Highlights
6 months to 6 months to 12 months to
30 September 30 September 31 March
2012 2011 2012
Distribution per unit including non-
permissible income (cents) 45.9 48.8 93.9
Non-permissible rental income
per unit (cents) (0.7) (0.9) (1.6)
Non-permissible investment income per
unit (cents) (0.2) (0.8) (1.2)
Distribution per unit excluding non-
permissible income (cents) 45.0 47.1 91.1
Property portfolio valuation (Rm) 395.3 384.6 396.5
Investment in Offshore Listed Properties
(Rm) 178.0 135.2 152.8
Investments in Local Listed Properties
(Rm) 17.4 13.5 13.8
Cash and cash equivalents (Rm)* 50.4 34.9 40.6
Net asset value per unit (cents) 1 491 1 388 1439
Listed market price (cents) 1 320 1 296 1300
*Includes held-for-trading investments.
Since its listing, the focus of the Fund has been to:
- build a portfolio of quality properties through direct investments;
- attract high quality tenants;
- build an investment portfolio; and
- investment in listed global property for scalability, geographical and currency
diversification.
Your Fund continues to deliver on its objectives and to deliver stable income and capital
growth.
The total return has been strong through all economic conditions, generating 8.9% over
the last 12 months.
Overview
The Fund has positioned itself well to deal with the expected economic environment and is
well diversified in terms of sector, tenant mix, geography and currency. The Fund has
diversified geographically, with 28% of its assets invested internationally. The global
portfolio is well diversified, and should deliver growth in earnings and value over the
medium term.
The Fund again delivered a positive return, with a total return of 8.9% compared to
inflation of 5.0% over the last 12 months. Measured since the inception of the Fund,
the cumulative performance is 113.3% compared to inflation over this period of 50.9%,
showing substantial inflation beating growth. This is annualised performance of 11.6% for
the Fund since inception against annual inflation of 6.1% during that period.
Beating inflation by an average of 5.5% allows for real growth of wealth over the long
term.
The level of diversification in the Fund gives it flexibility to allocate the assets in a
manner to perform consistently through the cycle.
Overview of performance
The Fund has continued to deliver a competitive return relative to inflation.
Sep Sep Sep Sep Sep
2012 2011 2010 2009 2008
Oasis Crescent Property Fund Actual Return (%) 8.9 12.3 7.8 20.4 -2.1
Inflation (%) *5.0 5.7 3.2 6.1 11.7
Notes:
Performance based on total return (capital and distribution including non permissible
income).
* Inflation lagged by one month as September 2012 inflation not released by date of
publication.
Fund Portfolio
Segment profile based on 30 September 2012 30 September 2011 31 March 2012
distributable income (%) (%) (%)
Industrial 36 48 39
Retail 26 23 23
Office 18 16 16
Listed properties and other 20 13 22
investments
100 100 100
Segment profile based on assets 30 September 2012 30 September 2011 31 March 2012
employed (%) (%) (%)
Industrial 25 27 26
Retail 27 28 28
Office 10 15 12
Listed properties and other
investments 38 30 34
100 100 100
Office Properties
The office component of the portfolio remains fully let. We have identified a building
that is an attractive investment opportunity with outstanding visibility and will enter
into the acquisition process.
Industrial Properties
The Fund has committed to a process of significant refurbishment of the industrial
properties within the Fund. At the properties of both Nourse Avenue and Sacks Circle the
Fund is undertaking a major refurbishment. This is in-line with the Fund's policy of
ensuring that all assets are kept in excellent condition, meeting the requirements of
world class tenants.
These properties were vacant during the refurbishment, which has a short term impact on
results.
Retail Properties
There has been solid progress on implementing the strategy at the Ridge @ Shallcross.
Checkers, the anchor tenant of The Ridge @ Shallcross, are expanding their premises from
approximately 4,500 to approximately 7,000 square meters. They are upgrading the entire
store to a new generation Checkers Hyper and entering into a new long term lease. The
success of this store has led to their major investment taking place. At the same centre,
we have entered into an agreement with another national tenant to build a specific
purpose unit for them with floor area of 1,320 square meters and yard of 600 square
meters. Combined, these developments will greatly enhance the centre.
Tenant turnover has increased by 64% from 2008; most notable increases were 14% and 18%
in the last two completed financial years. The space under refurbishment represents 16%
of the GLA of the Ridge and has been under refurbishment from 1 September 2012.
With the expansion and upgrade of the Checkers Hyper at The Ridge we anticipate increased
growth in the number of shoppers visiting the Ridge. This in turn will attract more
quality tenants and improve the overall performance and appearance of the Ridge. There
has also been an increase in tenants wanting to lease shops at the mall and a few new
leases have been concluded after 30 September 2012.
Global Investment
Your fund has the benefit of an excellent global portfolio that provides a competitive
advantage. It consists of high quality selected investments that perform well in tough
conditions. In this low global economic growth environment the top quality Real Estate
Investment Trusts (REITS) are increasingly benefiting from their competitive advantages
and are therefore delivering stronger operational results and cash flows relative to
their second and third tier peers. Global REIT income yields remain very attractive
relative to bond and cash yields and the global property component of the portfolio
continues to take advantage of these opportunities.
The Fund has 28% of its portfolio invested in global investments of R178.0 million
(September 2011: R135.2 million).
Outlook
These positive developments are in line with our efforts to protect and enhance the
assets in the Fund's portfolio and the Fund's objective to provide unitholders with
consistent and high quality performance from the Fund. The South African property
environment is still difficult and we have maintained consistent performance throughout
this cycle. There is still additional value within our portfolio that we will realise,
and we will continue to find attractive investment opportunities.
Service charge
The service charge is equal to 0.5% per annum of the Fund's market capitalisation and
borrowing facilities based on the average daily closing prices of the units. The amount
paid to OCPFM was R1.338 million (September 2011: R1.269million).
Property management
Property management is outsourced to OCPFM and external service providers. The amount
paid to OCPFM was R441 146 (September 2011: R436 173).
Actual units in issue
September 2012: 41 097 679 (September 2011: 39 592 393).
Changes to the Board
During the interim period, Mr Amir Abubaker Gogabori resigned as Financial Director and
was appointed as Non-executive Director effective 7 May 2012. Mr. Michael Swingler was
appointed as Financial Director effective 7 May 2012.
Distribution declaration and important dates
Notice is hereby given that a unit distribution after non-permissible income in respect
of the six months ended 30 September 2012 of 3.02 units for every 100 units so held, has
been declared payable to unit holders recorded in the register of the Fund at close of
business on Friday, 9 November 2012. The concomitant income distribution of 4 495.54
cents (in aggregate) for 100 units so held, which unit holders may elect to receive in
lieu of the aforementioned unit distribution, and which unit distribution comprises of
the following three payments, namely:
Scrip (per Cents (per Cents (per 100
Income category 100 units) unit) units)
(i) Property income 2.20 32.84 3 284.03
(ii) Offshore dividend income 0.54 7.99 7 98.78
(iii) Domestic permissible investment
income 0.28 4.12 412.73
Total 3.02 44.95 4 495.54
[(i) (iii) collectively referred to as the "unit distribution" and / or the "income
distribution" as the case may be.]
Unitholders should take note of the corporate action timetable as set out below in
respect of the above unit and income distribution and the election in terms thereof:
Declaration announcement on SENS of income
distribution and right of election to receive unit
distribution Friday, 19 October 2012
Circular and form of election posted to unitholders Monday, 22 October 2012
Finalisation announcement on SENS in respect of
income distribution and right of election to receive
unit distribution Friday, 26 October 2012
Last day to trade in order to be eligible for the
income distribution/unit distribution Friday, 2 November 2012
Trading commences ex-entitlement Monday, 5 November 2012
Listing of maximum possible number of unit
distribution units at commencement of trade on Monday, 5 November 2012
Closing date for the election of unit distribution
or scrip issue at 12:00 Friday, 9 November 2012
Record date for income distribution Friday, 9 November 2012
Unit certificates and/or income distribution cheques
posted and CSDP/broker accounts updated Monday, 12 November 2012
Announcement of the results of the income
distribution on SENS Monday, 12 November 2012
Adjustment of number of new units listed on or about Wednesday, 14 November 2012
Note:
1. Units may not be dematerialised or rematerialised between Monday 5 November 2012 and
Friday 9 November 2012.
2. The above dates and times may be subject to change. Any changes will be released on
the Securities Exchange News Service ("SENS").
3. All times quoted are South African times.
4. Dematerialised unitholders 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.
5. If no election is made, unitholders will receive the unit distribution.
A circular will be posted out to unitholders on or about 22 October 2012 in respect of
the income and unit distribution.
By order of the Board
Oasis Crescent Property Fund Managers Limited
Cape Town
19 October 2012
Designated Advisor
PSG Capital (Pty) Limited
Date: 19/10/2012 03:05:00 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
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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.