Wrap Text
Final abridged audited results and unit distribution declaration
Oasis Crescent Property Fund
A property fund created under Oasis Crescent Property Trust Scheme
registered in terms of the Collective Investment Schemes Control Act (Act
45 of 2002)
Share code: OAS
ISIN number: ZAE000074332
(“Oasis” or “the Fund”)
FINAL ABRIDGED AUDITED RESULTS AND UNIT DISTRIBUTION DECLARATION
The directors of Oasis Crescent Property Fund Managers Limited (“OCPFM” or
“the Manager”) the management company of the Fund, present the abridged
audited results of the Fund for the year ended 31 March 2013 as follows:
Statement of financial position as at 31 March 2013
2013 2012
R’000 R’000
Assets
Non-current assets 639 454 563 152
Investment properties 380 592 386 964
Property, plant and equipment 149 18
Straight-line lease accrual 17 758 9 536
Available-for-sale financial assets 240 955 166 634
Current assets 55 400 46 497
Trade receivables 1 927 2 414
Other receivables 3 437 3 486
Financial assets at fair value
through profit or loss 44 487 35 578
Cash and cash equivalents 5 549 5 019
Total assets 694 854 609 649
Unitholders’ funds and liabilities
Unitholders’ funds 669 542 585 234
Capital of the Fund 469 552 446 794
Retained income 1 309 295
Other reserves 198 681 138 145
Current liabilities 25 312 24 415
Trade payables 4 210 4 437
Accruals 905 233
Other payables 1 352 957
Trade payables to related parties 456 446
Unitholders for distribution 18 604 18 229
Non-permissible income for dispensation (215) 113
Total unitholders’ funds and
liabilities 694 854 609 649
Net asset value (“NAV”) (per unit) 1 587 cents 1 439 cents
Statement of comprehensive income for the year ended 31 March 2013
2013 2012
R’000 R’000
Income 69 756 59 471
Rental and related income 51 890 52 117
Investment income 10 406 8 276
Straight-lining of lease income 7 460 (922)
Expenses 24 634 23 714
Property expenses 21 046 20 343
Service charges 2 728 2 577
Other operating expenses 860 794
Net income from rentals and
investments 45 122 35 757
Fair value adjustment to investment
properties excluding straight-
lining of lease income (13 104) 10 679
Fair value adjustment to investment
properties (5 644) 9 757
Straight-lining of lease income (7 460) 922
Operating profit for the year 32 018 46 436
Net non-permissible investment
income 176 514
Non-permissible investment income
received 199 519
Interest paid (23) (5)
Net profit for the year 32 194 46 950
Other comprehensive income
Fair value gain on available-for-
sale financial assets 66 180 14 454
Total comprehensive income for
the year 98 374 61 404
Basic earnings per unit including
non-permissible income (cents) 77.9 118.0
Additional information:
Headline earnings and distributable income
reconciliation
Net profit for the period 32 194 46 950
Adjusted for:
Fair value adjustment to investment
properties 13 104 (10 679)
Headline earnings 45 298 36 271
Less fair value adjustment on financial
assets at fair value through profit or
loss (1 014) 154
Less straight line lease accrual (7 460) 922
Distributable income including non- 36 824 37 347
permissible income
Non-permissible rental income (25) (641)
Non-permissible investment income (179) (474)
Distributable income excluding non-
permissible income 36 620 36 232
Basic earnings per unit including non-
permissible income (cents) 77.9 118.0
Headline earnings and diluted
headline earnings per unit
including non-permissible
income (cents) 109.7 91.2
Distribution per unit including non-
permissible income (cents) 89.2 93.9
Distribution per unit excluding non-
permissible income (cents) 88.7 91.1
Weighted average units in issue 41 304 831 39 786 095
Units in issue at the end of the year 42 182 225 40 665 493
Statement of changes in unitholders’ funds for the year ended 31 March
2013
Capital
of the Other Retained
Fund Reserves income Total
R’000 R’000 R’000 R’000
Balance at 1 April 2011 414 809 113 934 449 529 192
Net profit for the year
ended 31 March 2012 - - 46 950 46 950
Other comprehensive income
Fair value gain on
available-for-sale
financial assets - 14 454 - 14 454
Total comprehensive
income for the year
ended 31 March 2012 - 14 454 46 950 61 404
Issue of units in lieu
of distribution 32 496 - - 32 496
Transaction costs for
issue of new units (207) - - (207)
Transfer to valuation
reserve - 9 757 (9 757) -
Distribution received
in advance (304) - 304 -
Distribution to
unitholders - - (36 536) (36 536)
Dispensation of non-
permissible income - - (1 115) (1 115)
Balance at 1 April 2012 446 794 138 145 295 585 234
Net profit for the year
ended 31 March 2013 - - 32 194 32 194
Other comprehensive
income
Fair value gain on
available-for-sale
financial assets - 66 180 - 66 180
Total comprehensive
income for the year
ended 31 March 2013 - 66 180 32 194 98 374
Issue of units in lieu
of distribution 33 170 - - 33 170
Repurchase and liquidation
of units (9 144) - - (9 144)
Transaction costs for
issue of new units (337) - - (337)
Transfer from valuation
reserve - (5 644) 5 644 -
Distribution received
in advance (931) - 298 (633)
Distribution to
unitholders - - (36 919) (36 919)
Dispensation of non-
permissible income - - (203) (203)
Balance at 31 March 2013 469 552 198 681 1 309 669 542
Statement of cash flows for the year ended 31 March 2013
2013 2012
R’000 R’000
Cash flows from operating activities
Net profit for the period 32 194 46 950
Adjusted for:
Non-permissible investment income received (199) (519)
Interest paid 23 5
Depreciation 21 12
Provision for receivables impairment (519) (468)
Straight-line lease accrual (7 460) 922
Lease incentives (762) -
Fair value adjustment on financial assets
at fair value through profit or loss (1 014) 154
Fair value adjustment to investment
properties excluding straight-lining of
lease income 13 104 (10 679)
35 388 36 377
Decrease/(increase) in current assets
Trade receivables 1 006 2 162
Other receivables 49 (763)
(Decrease)/increase in current liabilities
Trade payables (227) 374
Accruals 672 27
Other payables 395 (367)
Trade payables to related parties 10 399
Cash generated from operations 37 293 38 209
Interest paid (23) (5)
Non-permissible investment income received 199 519
Unitholders for distribution (3 373) (6 096)
Non-permissible income dispensed (532) (1 179)
Net cash inflow from operating activities 33 564 31 448
Cash flows from investing activities
Acquisition of available-for-sale
financial assets (8 141) (15 734)
Acquisition of financial assets at fair
value through profit or loss (10 895) (20 442)
Acquisition of property, plant and equipment (152) -
Additions to investment properties (6 732) (3 473)
Proceeds from sale of financial assets
at fair value through profit or loss 3 000 6 500
Net cash outflow from investing activities (22 920) (33 149)
Repurchase and liquidation of units (9 144) -
Distribution received in advance (633) -
Cash flows from financing activities
Transaction cost (337) (207)
Net cash (outflow)/inflow from financing
activities (10 114) (207)
Net increase/(decrease) in cash and
cash equivalents 530 (1 908)
Cash and cash equivalents
At the beginning of the year 5 019 6 927
At the end of the year 5 549 5 019
Segmental information for the year ended 31 March 2013
Indus- Invest- Cor-
Retail Offices trial ments porate Total
R’000 R’000 R’000 R’000 R’000 R’000
Segment revenue
Property income
Rental and
related income 24 765 9 981 17 144 - - 51 890
Income from
investments
excluding non-
permissible
income
Dividend income
offshore - - - 5 876 - 5 876
Permissible
investment
income -
domestic - - - 3 516 - 3 516
Fair value
adjustment to
financial
assets at fair
value through
profit or loss - - - 1 014 - 1 014
24 765 9 981 17 144 10 406 - 62 296
Segment expense
Property
expenses 13 963 2 822 3 617 - 644 21 046
Service charges - - - - 2 728 2 728
Other operating
expenses - - - - 860 860
13 963 2 822 3 617 - 4 232 24 634
Segment result
Operating
profit/(loss) 10 802 7 159 13 527 10 406 (4 232) 37 662
Net finance
income
Net interest
received - - - 176 - 176
Net profit/(loss)
before
straight-line
lease income
and fair value
change to
investment
properties 10 802 7 159 13 527 10 582 (4 232) 37 838
Straight-lining
of lease
income 8 631 (103) (1 068) - - 7 460
Fair value
adjustment to
investment
properties (3 666) 7 013 (16 451) - - (13 104)
Net profit/(loss)
after
straight-line
lease income
and fair
value change
to investment
properties 15 767 14 069 (3 992) 10 582 (4 232) 32 194
Segment assets
Investment
properties 161 702 76 895 141 995 - - 380 592
Property, plant
and equipment 83 66 - - - 149
Straight-line
lease accrual 13 278 105 4 375 - - 17 758
Available-for-
sale financial
assets - - - 240 955 - 240 955
Trade receivables 1 465 83 379 - - 1 927
Other receivables 342 170 111 785 2 029 3 437
Financial assets
at fair value
through profit
or loss - - - 44 487 - 44 487
Cash and cash
equivalents - - - 5 549 - 5 549
176 870 77 319 146 860 291 776 2 029 694 854
Segment
liabilities
Trade payables 3 107 356 745 - 2 4 210
Accruals - 117 547 - 241 905
Other payables 755 166 153 - 278 1 352
Trade payables
to related
parties 92 - 36 - 328 456
Unitholders for
distribution - - - - 18 604 18 604
Non-permissible
income
available for
dispensation - - - - (215) (215)
3 954 639 1 481 - 19 238 25 312
Net current
assets (2 147) (386) (991) 50 821 (17 209) 30 088
Capital
expenditure 653 - 6 079 - - 6 732
Segmental information for the year ended 31 March 2012
Indus- Invest- Cor-
Retail Offices trial ments porate 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
excluding 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
change 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 change
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 1 381 204 818 11 - 2 414
Other receivables 342 88 12 1 017 2 027 3 486
Financial assets
at fair value
through profit
or loss - - - 35 578 - 35 578
Cash and cash
equivalents - - - 5 019 - 5 019
170 471 70 362 158 530 208 259 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 current
assets (1 906) (186) (112) 41 625 (17 339) 22 082
Capital
expenditure 3 192 282 - - - 3 474
Commentary
Basis of preparation and accounting policies
The financial statements of the Fund have been prepared in accordance with
International Financial Reporting Standards (IFRS) including IAS34, the
SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee, the Financial Reporting Pronouncements as issued by the
Financial Reporting Standards Council, the JSE Listings Requirements and
the requirements of the Collective Investment Schemes Control Act of 2002.
The accounting policies applied in the preparation of the financial
statements are consistent with those used in the previous year.
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.
PricewaterhouseCoopers Inc. has audited the financial information set out
in this report. Their unqualified audit report is available for inspection
at the Fund’s registered office. These abridged audited results were
compiled by Mr Lourens Brink CA(SA).
Any reference to the future financial performance of the Fund contained in
this announcement has not been reviewed or reported on by the Fund’s
auditors.
Financial results
The Net Asset Value of your Fund has continued to grow, up by 10.3% to 1
587 cents per unit (2012: 1 439 cents), showing solid capital
appreciation. Distribution per unit excluding non-permissible income has
decreased by 2.6% from 91.1 cents to 88.7 cents.
2013 2012
Distribution per unit including non-permissible income
(cents) 89.2 93.9
Non-permissible rental income per unit (cents) (0.1) (1.6)
Non-permissible investment income per unit (cents) (0.4) (1.2)
Distribution per unit excluding non-permissible income
(cents) 88.7 91.1
Property portfolio valuation (Rm) 398.4 396.5
Investment portfolio valuation (Rm) 285.4 202.2
Cash and cash equivalents (Rm) 5.5 5.0
Net asset value per unit (cents) 1 587 1 439
Listed market price at year end (cents) 1 350 1 300
Overview
For the period to 31 March 2013, your Fund had another consistent year of
generating real growth. It has consistently succeeded in doing so since
inception, despite severe market fluctuations. The low risk investment
approach has created wealth for our investors with an annualised total
shareholder return of 11.7% and an annualized total intrinsic value return
of 12.5% since inception, compared to annualised inflation of 6.2%. Your
Fund is well positioned in the current economic cycle with no debt and
substantial reserves. This enables the Manager to take advantage of
potential acquisition or development opportunities in line with your
Fund’s objectives.
The focus since listing has been to build a portfolio of quality
properties through direct investments; to attract high quality tenants;
and build an investment portfolio that invests in listed global property
for scalability, geographical and currency diversification.
Financial performance
For the year under review your Fund delivered a total shareholder return
of 10.7% compared to inflation of 5.9%. Since inception the cumulative
total shareholder return is 125.0% compared to inflation of 56% for the
same period, showing substantial inflation beating growth. The cumulative
total intrinsic value return is 138.2%, with a return of 16.4% in the
current year.
Your Fund has outperformed inflation by an average of 5.5% per year since
inception. This has allowed for long term growth of wealth in real terms
in a low risk environment. At a market price of R13.50 on the 31st of
March 2013 your Fund was trading at a discount of 14.9% to NAV, offering
investors an opportunity to purchase quality assets at a discounted price.
Cumulative returns 2013 2012 2011 2010 2009 2008 2007 2006
Total shareholder return % 125.0 103.3 88.3 67.4 52.9 40.4 30.6 17.1
Total intrinsic value return
% 138.2 104.5 83.9 65.2 44.1 35.4 16.2 1.9
Inflation % 56.0 47.3 39.0 33.5 27.0 14.2 6.3 1.4
Notes:
1. Performance is based on total return (capital and distribution
excluding non-permissible income).
2. The return was realised at low risk due to non debt.
3. Intrinsic return is calculated based on movements in the NAV compared
to actual return which is calculated based on actual market price
movements as per Altx quoted prices.
4. The Fund was incorporated on 23 November 2005, inflation for 2006 has
been weighted accordingly.
In the current reporting period the Fund repurchased 746,379 units at 1
225 cents per unit. This repurchase was concluded in September 2012. The
Fund also issued 2.263 million units in lieu of distribution. 1.179
million units were issued in June 2012 at 1 439 cents per unit and 1.084
million units were issued in November 2012 at 1 491 cents per unit.
3. Portfolio valuation
The investment properties were independently valued by Mills Fitchet
Magnus Penny Proprietary Limited on 31 March 2013 and the portfolio was
valued at R398.35 million.
4. Outlook
It is expected that the trading conditions will remain competitive in the
foreseeable future. The aim to reduce investment risk through the
continuous investment in high quality assets has ensured that your Fund is
well positioned for these conditions.
Your Fund is in the fortunate position where there is further potential to
increase the income earned on the direct portfolio by maximising the
returns on existing assets which will significantly improve the yield for
investors. Global diversification decreases the risk of investment and
provides exposure to high quality global assets and is a unique
characteristic of your Fund. The substantial cash holdings of your Fund
provide it with significant flexibility to grow through value-enhancing
acquisitions and developments.
5. 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
2013 2012
R’000 R’000
Service charge paid to Oasis Crescent Property Fund
Managers Limited 2 728 2 577
Property management fees paid to Oasis Crescent
Property Fund Managers Limited 909 858
Other service charges paid to Oasis Crescent Property
Fund Managers Limited 28 -
Rental and related income from Oasis Group
Holdings (Proprietary) Limited at The
Ridge@Shallcross 381 342
Related party balances
Trade payables to Oasis Group Holdings (Proprietary)
Limited 59 115
Trade payables to Oasis Crescent Property Fund
Managers Limited 397 331
456 446
Declaration announcement in respect of unit distribution for the 6 months
ended 31 March 2013
Notice is hereby given that a final unit distribution for the six-month
period ended 31 March 2013 of 2.75 units at 1 587.26 cents per unit (in
aggregate), for every 100 (one hundred) units so held, has been declared
to unitholders recorded in the register of the Fund at 12:00pm on Friday,
31 May 2013, and the concomitant income distribution of 4 372.23 cents (in
aggregate), after non-permissible income, for every 100 (one hundred)
units so held, which such unitholders may elect to receive in lieu of the
aforementioned unit distribution, and which unit distribution comprises of
the following three payments, namely:
Cents Cents per Scrip election
per unit 100 units (per 100 units)
Income category
(a) Property income 35.4989 3 549.89 2.24
(b) Offshore dividend income 4.8191 481.91 0.30
(c) Domestic permissible
investment income 3.4043 340.43 0.21
Total 43.7223 4 372.23 2.75
(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 unit and income distribution and the
election in terms thereof.
Salient dates and times 2013
Declaration announcement on SENS of unit
distribution and right of election to receive
income distribution Wednesday, 8 May
Circular and form of election posted to
unitholders Friday, 10 May
Finalisation announcement on SENS in respect of
unit distribution and right of election to
receive income distribution Friday, 17 May
Last day to trade in order to be eligible for
the unit distribution/income distribution Friday, 24 May
Trading commences ex-entitlement Monday, 27 May
Listing of maximum possible number of unit
distribution units at commencement of trade on Monday, 27 May
Closing date for the election of income
distribution at 12:00 pm Friday, 31 May
Record date Friday, 31 May
Unit certificates and/or income distribution
cheques posted and CSDP/broker accounts updated Monday, 3 June
Announcement of the results of the unit
distribution on SENS Monday, 3 June
Adjustment of number of new units listed on
or about Wednesday, 5 June
Note:
1. Units may not be dematerialised or rematerialised between Monday, 27
May 2013 and Friday, 31 May 2013 both days inclusive.
2. The above dates and times are subject to change. Any changes will be
released on the Stock Exchange News Service (“SENS”) of the JSE.
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 as stipulated in terms of their mandate
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.
Tax implications
In respect of the unit distribution (and concomitant income distribution),
the manager hereby advises unitholders, who will receive the unit
distribution, that for taxation purposes the property unit distribution,
offshore dividend unit distribution and domestic permissible investment
income unit distribution have different tax implications for unitholders
as a result of such distributions being classified as either a net
property distribution, net foreign income distribution or net domestic
income distribution and accordingly the provisions of Dividend Tax will
not be applicable.
The Income Tax Act sections applicable to the distributions made are as
follows:
- Property income distribution – section 10 (k)
- Offshore dividend income distribution – section 10 (i)
- Domestic permissible investment income distribution – section 10 (k)
- Realised gain in domestic permissible investment income distribution –
8th schedule of the Income Tax Act
Both resident and non-resident unitholders are encouraged to consult their
professional tax advisors with regard to their individual tax liability in
this regard.
A circular will be posted out to unitholders on or about Friday, 10 May
2013, in respect of the unit and income distribution.
By order of the board
Oasis Crescent Property Fund Managers Limited
Cape Town
8 May 2013
Designated Adviser
PSG Capital (Pty) Limited
Date: 08/05/2013 03:45:00 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
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.
Sharenet Sites 
