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ACP - Audited Results for the year ended 31 March 2013
Acucap Properties Limited
(Reg No. 2001/021725/06)
(Incorporated on 12 September 2001)
"Acucap" or "the company"
Share Code: ACP
ISIN: ZAE000037651
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2013
Summarised Consolidated Statement of Financial Position
at 31 March 2013
2013 2012
R'000 R'000
Assets
Property assets 7 948 485 7 384 501
Investment properties 7 452 230 6 944 457
Non-current receivable 83 395 79 551
Current receivable 30 033 27 497
Investment properties and related receivables 7 565 658 7 051 505
Investment properties under development 319 555 267 639
Owner-occupied property 8 920 9 395
Property development inventory 54 352 55 962
Other non-current assets 2 172 406 1 713 779
Loans in respect of unit purchase scheme 390 771 321 903
Equipment 1 400 1 387
Intangible assets and goodwill 256 934 282 493
Interest in jointly controlled entities 153 078 5 099
Listed investments 1 356 789 1 044 430
Deferred tax assets 13 434 58 467
Other current assets 227 772 239 218
Trade and other receivables 203 511 230 088
Tax receivable 1 265 731
Cash and cash equivalents 22 996 8 399
Total assets 10 348 663 9 337 498
Equity and liabilities
Shareholders interest 4 856 731 3 777 372
Share capital and share premium 2 212 903 1 999 591
Non-distributable reserve 3 020 133 2 069 809
Accumulated loss (376 305) (292 028)
Non-current liabilities 4 666 723 4 823 009
Debentures 1 749 150 1 688 830
Financial liabilities 2 633 303 2 461 176
Financial instruments 47 981 83 176
BEE instrument 220 519 137 774
Deferred tax liabilities 15 770 452 053
Current liabilities 825 209 737 117
Trade and other payables 127 834 134 393
Financial liabilities 423 849 353 677
Debenture interest payable 273 526 249 047
Total equity and liabilities 10 348 663 9 337 498
Summarised Consolidated Statement of Comprehensive Income
for the year ended 31 March 2013
2013 2012
R'000 R'000
Revenue 650 790 640 084
- Contractual 644 410 654 537
- Straight lining 6 380 (14 453)
Net operating expenses (39 604) (47 817)
Loss on disposal of investment properties (962) (1 468)
Amortisation of intangible assets (25 559) (25 559)
Profit before fair value adjustments, interest and taxation 584 665 565 240
Fair value adjustment to investment properties 441 276 435 845
Fair value adjustment to BEE instrument (82 745) (53 733)
Fair value adjustment to government bonds - (19 188)
Profit before interest and taxation 943 196 928 164
Interest income 126 429 114 400
Interest expense
- debentures (535 476) (486 088)
- other (195 893) (234 270)
Share of profit of equity accounted investee (net of income tax) 18 701 270
Profit before taxation 356 957 322 476
Taxation income/(expense) 375 742 (146 133)
Profit for the year 732 699 176 343
Other comprehensive income
Net change in fair value of listed investments, net of taxation 182 433 174 507
Net change in fair value of cash flow hedge, net of taxation (49 085) (53 585)
Other comprehensive income for the year, net of taxation 133 348 120 922
Total comprehensive income for the year 866 047 297 265
Cent Cent
Basic and diluted earnings per share 426.56 107.84
Interest distribution per linked unit
- interim 151.00 145.00
- final 156.22 147.32
Total distribution per linked unit 307.22 292.32
2013 2012
Gross Net of tax Gross Net of tax
Headline earnings/(loss) R'000 R'000 R'000 R'000
The calculation of the headline earnings per share is based
on a weighted average of 171 768 394 (2012: 163 525 174)
shares in issue during the year and the headline earnings
are calculated as follows:
Profit for the year 732 699 176 343
Fair value adjustment of investment properties (441 276) (441 276) (435 845) (355 301)
Loss on disposal of investment properties 962 784 1 468 1 197
Headline earnings/(loss) - shares 292 207 (177 761)
Interest paid to debenture holders 535 476 486 088
Headline earnings - linked units 827 683 308 327
Cents Cents
Headline earnings/(loss) per share 170.12 (108.71)
Headline earnings per linked unit 481.86 188.55
Summarised Consolidated Statement of Cash Flows
for the year ended 31 March 2013
2013 2012
R'000 R'000
Cash flows from operating activities
Cash generated from operations 626 178 599 398
Changes in property purchases 1 610 6 171
Income tax paid (441) (3 426)
Interest income 126 429 114 400
Interest expense (706 890) (698 000)
Net cash inflow from operating activities 46 886 18 543
Net cash outflow from investing activities (473 794) (40 688)
Cash flows from financing activities
Proceeds from the issue of shares 213 312 167 030
Proceeds from the issue of debentures 60 320 58 197
Settlement of financial instruments (74 426) (58 641)
Financial liabilities raised 342 077 481 735
Financial liabilities repaid (99 778) (623 754)
Net cash inflow from financing activities 441 505 24 567
Net cash inflow for the year 14 597 2 422
Cash and cash equivalents at beginning of year 8 399 5 977
Cash and cash equivalents at end of year 22 996 8 399
Summarised Consolidated Statement of Changes in
Equity
for the year ended 31 March 2013
Share Share Non- Accumu Total
capital premium distributable lated loss
reserve
R'000 R'000 R'000 R'000 R'000
BALANCE AT 31 MARCH 2011 163 1 832 398 1 699 847 (219 331) 3 313 077
Total comprehensive income/(expense) for the year
Profit for the year - - - 176 343 176 343
Other comprehensive income/(expense) for the year
Net change in fair value of listed investments - - 174 507 - 174 507
Net change in fair value of cash flow hedge recognised
directly in other comprehensive income - - (53 585) - (53 585)
Total comprehensive income for the year - - 120 922 176 343 297 265
Transactions with owners, recognised directly in equity
Issue of 250 000 shares in April 2011 - 5 221 - - 5 221
Proceeds - 5 254 - - 5 254
Share issue costs - (33) - - (33)
Issue of 5 575 515 shares in March 2012 6 161 803 - - 161 809
Proceeds 6 161 907 - - 161 913
Share issue costs - (104) - - (104)
Transfer to non-distributable reserve - - 249 040 (249 040) -
Total transactions with owners 6 167 024 249 040 (249 040) 167 030
BALANCE AT 31 MARCH 2012 169 1 999 422 2 069 809 (292 028) 3 777 372
Total comprehensive income/(expense) for the year
Profit for the year - - - 732 699 732 699
Other comprehensive income/(expense) for the year - - 133 348 - 133 348
Net change in fair value of listed investments - - 182 433 - 182 433
Net change in fair value of cash flow hedge recognised (49 085) - (49 085)
directly in other comprehensive income - -
Total comprehensive income for the year - - 133 348 732 699 866 047
Transactions with owners, recognised directly in equity
Issue of 4 425 040 shares in September 2012 4 157 512 - - 157 516
Proceeds 4 157 616 - - 157 620
Share issue costs - (104) - - (104)
Issue of 1 613 000 shares in January 2013 2 55 794 - - 55 796
Proceeds 2 55 868 - - 55 870
Share issue costs - (74) - - (74)
Transfer to non-distributable reserve - - 816 976 (816 976) -
Total transactions with owners 6 213 306 816 976 (816 976) 213 312
BALANCE AT 31 MARCH 2013 175 2 212 728 3 020 133 (376 305) 4 856 731
BASIS OF PREPARATION AND AUDIT OPINION
The summary consolidated financial statements are prepared in accordance with the requirements of the JSE Limited Listings
Requirements for preliminary reports, and the requirements of the Companies Act applicable to summary financial statements. The
Listings Requirements require preliminary reports to be prepared in accordance with the framework concepts, the measurement and
recognition requirements of International Financial Reporting Standards, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council, and to also, as a
minimum, contain the information required by IAS 34 Interim Financial Reporting. The accounting policies applied in the preparation of
the consolidated financial statements from which the summary consolidated financial statements were derived are in terms of
International Financial Reporting Standards and are consistent with those accounting policies applied in the preparation of the previous
consolidated annual financial statements.
The financial statements are prepared on the historical cost basis, except for investment properties, investment properties held-
for-sale, derivative financial instruments, financial assets and available-for-sale financial assets which are measured at fair value.
The financial statements are prepared on the going concern basis and Acucaps accounting policies have been applied consistently to
all periods presented.
KPMG Inc. has audited the financial information set out above. Their unmodified audit report is available for inspection at the
companys registered office. The information contained in the commentary below does not form part of the audit opinion.
COMMENTARY
1. REVIEW OF RESULTS AND OPERATIONS
Acucaps board is pleased to report a distribution of 156.22 cents per unit (cpu) for the six months ended 31 March 2013.
This represents growth of 6.0% over the same six-month period last year. Together with the interim distribution of
151.00 cpu, this gives unitholders an annual distribution of 307.22 cpu, a growth rate of 5.1% over the previous financial
year.
Over the eleven years since Acucap was listed on the JSE, distributions have grown at a compound average annual rate of
8.4%, compared to inflation at an average annual rate of 5.4% pa over the same period. The total returns on an investment
made in Acucap units with dividends reinvested have averaged 28.1% per annum compounded over the eleven years. The
companys objective is to deliver at least inflation-equalling growth in cash distributed to its unit holders, and since listing,
Acucap has successfully met this objective.
Bad debts written off of R2.26 million were higher than the R1.27 million written off in the prior year, while the provision for impairment
of tenant receivables also increased to R3.6 million from R2.9 million at 31 March 2012. This negative shift in bad debts is attributable to
an individual tenant failure, however, and is not an indication of a general deterioration in the credit environment.
2. PORTFOLIO INVESTMENT ACTIVITY
Helderberg Hyper
The new 22,000 m2 retail centre in Somerset West has been under construction since January 2013. The centre will be
anchored by a Checkers Hyper and will accommodate a further 5,500 m2 of ancillary retail and a 7,500m2 self-storage
facility. The estimated final capital cost of the development remains at R210m with a projected first year yield of 9,1%.
The centre is scheduled to open for Easter trade in April 2014.
Watercrest Mall
Construction of the first phase of this planned 43,500 m2 regional shopping centre in the Waterfall area of Durban has
commenced and is scheduled for completion by the end of September 2013. This 10,000m2 phase includes the relocation
of the Super Spar as well as supporting retail, and its completion will allow the construction of the overall mall to
commence after building plan approval, expected in July 2013. Watercrest Mall has received strong tenant support with
70% of the proposed area already let. The project has a total capital cost of R680m and an anticipated first year yield of
8.3%. Acucap will own 50% of the completed project.
Key West Shopping Centre
The Key West upgrade and extension program commenced in March 2012 and the current phase, comprising the
upgrade of the malls and the entertainment area, and the completion of additional parking decks, is due for completion
by 1 September 2013. The relocation of the existing Virgin Gym will also have been completed by this date, and the total
cost of the recapitilsation will be approximately R230 million. The final phase of this program will involve the tenanting of
approximately 6,500 m2 of well-positioned mall space left open by the relocation of the Virgin Gym. Key West has traded
well during the upgrade and refurbishment, with consistent improvement in tenant sales revenues and shopper volumes
as successive areas of the mall have reached completion.
Randfontein Village Shopping Centre
Randfontein Village Squares upgrade and extension of approximately 3,500m2 GLA is practically complete at a total
capital cost of R45millon and a first year yield of 9,5%. The expanded centre has received positive customer response,
with improved trading densities even during the course of the upgrade. Planning for a further expansion is currently
underway.
3. SIMPLIFIED FINANCIAL INFORMATION
Simplified financial information is presented to eliminate the effects of IFRS and accounting adjustments that do not form
part of Acucaps distribution.
Simplified distribution income statement for the year ended 31 March 2013
year to 31 March year to 31 March
2013 2012
R'000 R'000
Revenue 638 356 630 158
Net property expenses -65 151 -54 653
Net property income 573 205 575 505
Income from listed investments 80 121 71 097
Net income from investment in Sycom Property
Fund Managers 57 472 39 240
Income from investment portfolio 710 798 685 842
Indirect non-property expenses -20 891 -19 771
Development profits 0 7 183
Interest received 14 885 11 551
Interest received on Unit Purchase Trust 25 055 24 936
Notional interest received on units issued 7 674 8 583
Interest paid -176 177 -207 624
Debenture holders interest paid - annual 561 344 510 700
Debenture holders interest paid - interim 274 664 249 247
Debenture holders interest paid - final 286 680 261 453
cents cents
Interim distribution per linked unit 151.00 145.00
Final distribution per linked unit 156.22 147.32
Total distribution per linked unit 307.22 292.32
Simplified balance sheet at 31 March 2013
R'000 R'000
Assets
Property assets 7 866 356 7 301 373
Listed property investments 1 400 892 1 080 951
Investment in Sycom Property Fund Managers 610 000 466 000
Other non-current assets 586 460 414 022
Other current assets 250 880 285 108
Total assets 10 714 588 9 547 454
Equity and liabilities
Shareholder's interest 7 412 173 6 069 774
Non-current liabilities 2 873 415 2 631 116
Deferred tax 15 770 452 053
Current liabilities 413 230 394 511
Total equity and liabilities 10 714 588 9 547 454
Net Asset Value (Rand) 40.48 36.75
4. PORTFOLIO PERFORMANCE
Retail portfolio
Acucaps retail portfolio has yielded positive results for the period under review despite concerns over rising
household debt to income levels. In Acucaps retail products, trading conditions have been sustained by the expanding
urban middle-income market, grant money expenditure and increased urbanisation levels evident in South African
metropolitan centres.
Vacancy rates throughout the portfolio are low at 1,6% by GLA and 1.8% by income, and shopping centers have
experienced stable and consistent shopper volumes.
The retail portfolio showed reported tenant sales revenue of R 7,3 billion for the 12 month period, up 4,8% on the prior
year figure. The highest tenant sales growths occurred in the community shopping centre formats, where shopping
convenience appears to have been a major factor. Gardens, Howard Centre and Hillcrest Corner showed year on year
increases in reported tenant sales revenue of 10,6%, 8.1% and 6,9% respectively. Regional shopping patterns remain
stable with exceptional performance at Key West, which recorded sales growth of 5,7% and a shopper volume
increase of 9,3%.
At a segmental level, retail sales were in line with the growth rates reported by the major listed retailer groups.
National supermarkets and apparel retail chains occupy 50% of the lettable area of the portfolio and contribute 70% of
retail sales. Independent line shops occupy less than 5% of lettable space.
Food services, including take away outlets and family restaurants, health and beauty and homeware retailers reflected
the highest trading density growths, upwards of 7%, with a slower growth in trading densities being reported by the
electronics and general discount segments.
Excluding the Checkers Hyper long term renewal at Festival Mall, the total cost of occupation by retailers including rent,
turnover rent, operational costs, marketing, and municipal and rates recoveries increased by 6.5% year on year to 6.4%
of their total reported sales. Total occupation costs thus remain at sustainable levels despite the effects of prolonged
increases in the cost of electricity, and municipal services and rates.
Leases for 44 440 m2 expired during the year and were renewed or relet at rates 6.7% higher on average than
terminating rentals. There was a strong tenant retention ratio of 70% of the GLA.
Office portfolio
Vacancies remained low in Acucaps office portfolio, ending the year at 2.0% (2012: 3.3%). In an office market that has
been under pressure for several years, the low vacancy rate is a good indication of the quality of the funds office assets.
Rental rates, however, remained under pressure. Leases totalling 23 187 m2 expired during the year at an average rental
of R141.21/m2, and leases totalling 24 412 m2 were entered into at an average of R130.36/m2, a negative reversion of
7.7%. The tenant retention ratio was 63% with a negative reversion of 1.6% on those leases.
Leases for 24 796 m2 are due to expire in the 2014 financial year at an average rental of R150.30/m2 and current
expectations are for renewals to be concluded approximately 12.7% lower at an average of R131.20/m2, at the same time
maintaining the high retention ratio that has characterised Acucaps office portfolio.
Contribution to net income
On the basis of individual assets and asset segments, Acucaps net income is attributable as follows:
March 2013 Contractual rental income % of total Net property income % of total % of net income 2012
R'000 R'000
Festival Mall 106 054 16.6% 93 678 16.3% 16.6%
Bayside Centre 76 977 12.1% 67 109 11.7% 10.6%
Key West 65 958 10.3% 58 045 10.1% 9.8%
Gardens Centre 39 112 6.1% 31 835 5.6% 5.4%
Other retail 158 965 24.9% 144 733 25.3% 26.2%
Total Retail 447 066 70.0% 395 400 69.0% 68.6%
Offices 174 479 27.3% 163 312 28.5% 29.1%
Industrial 13 929 2.2% 13 228 2.3% 2.2%
Storage 2 882 0.5% 1 265 0.2% 0.1%
Total 638 356 100.0% 573 205 100.0% 100.0%
5. SYCOM
Distributions received from Acucaps investment in Sycom Property Fund were 5% higher at 175.03 cpu compared to 166.66
cpu in the year to 31 March 2012. Sycom successfully completed a R900m rights offer in the period under review, and a ballot
is under way to increase Sycoms gearing limit from 30% to 60%. These initiatives will give Sycom a greater degree of
operational flexibility in pursuing its strategy.
Sycoms retail portfolio produced a solid 6.5% growth in sales revenue, with the segmental contributions to the overall result
largely unchanged from the prior year. Renewal rentals on the 28 509 m2 of leases that expired during the year were
concluded at 1.6% higher than expiring rentals.
Sycoms office portfolio remained stable, with vacancies at 3.1%. The acquisition of the remaining 60% of the 114,000m2
Woodlands Office Park has made a substantial contribution to the scale and quality of the funds office portfolio.
6. SELF-STORAGE JOINT VENTURE
There has been pleasing progress in the development of the self-storage joint venture. There are 12 trading stores, a
further nine under construction, and 9 more operating sites that have been acquired from other operators and are awaiting
transfer. These stores will be re-branded as Stor-Age facilities. Together, the overall portfolio of 30 stores, comprising a
GLA of 230 000m2, will be valued at around R1.5 billion on completion. This is close to a size considered appropriate for a
separate listing.
7. BORROWINGS
The group has total borrowings of R2.87 billion. Interest rates are hedged on 46.8% of total borrowings, with a weighted
average maturity of 3.8 years. The weighted average cost of all debt funding is 7.6%. The gearing ratio at 31 March 2013
was 28.5%, down from 29.6% at the end of March 2012. At year end, Acucap had unutilised long-term facilities of R1.140
billion plus additional gearing capacity of R1 billion. The table below shows the group's borrowings relative to its
investment portfolio over the last 11 years.
Total
investment Borrowings
portfolio (Rm) (Rm) Gearing ratio
March 2003 913 451 49.4%
March 2004 1 068 416 39.0%
March 2005 1 718 633 36.8%
March 2006 2 364 662 28.0%
March 2007 3 307 601 18.2%
March 2008 6 300 2 453 38.9%
March 2009 6 002 2 286 38.1%
March 2010 6 658 2 343 35.2%
March 2011 8 077 2 754 34.1%
March 2012 8 900 2 631 29.6%
March 2013 10 085 2 873 28.5%
8. PROPERTY PORTFOLIO VALUATION
The Acucap portfolio was revalued at 31 March 2013 by independent valuers. The value of the property portfolio
increased from R7.3 billion at the end of March 2012 to R7.9bn at the end of the current financial year, a 7.7% increase.
Excluding the effects of capital expenditure and disposals from the base, the portfolio value increased by 6.4% over the
prior year. A complete property valuation schedule is set out below. In addition to independent values and
capitalisation rates, the schedule also indicates average net rentals per m2 for each property, as well as its occupancy
level. In the case of the office segment, average net rental rates per m2 include parking revenue.
Following the year end revaluation, Acucaps Net Asset Value (NAV), calculated excluding the effects of deferred tax,
increased to R40.48 from R36.75 per linked unit at 31 March 2012.
Schedule of investment properties at 31 March 2013
Independent Cap rate Rentable Average Occupancy
valuation Area rental per
square
meter
(including
parking)
R000 m2 R
Retail 5 468 429 309 392 116.69 98.2%
Festival Mall, Kempton Park 1 408 000 7.00% 81 146 104.98 99.8%
Bayside Centre, Table View 1 000 000 7.25% 45 840 137.14 97.8%
Keywest, Krugersdorp 915 000 7.25% 51 015 112.17 99.0%
Gardens Centre, Cape Town 465 000 7.50% 14 388 210.48 94.1%
Howard Centre, Pinelands 270 000 8.00% 14 591 130.03 97.5%
The Village Square, Randfontein 324 000 8.00% 20 098 114.17 100.0%
Westville Mall, Durban 242 000 8.00% 13 104 125.73 98.4%
East Rand Value Mall, Boksburg 193 000 8.25% 13 715 116.91 90.8%
14th Avenue Hyper, Roodepoort 191 000 8.00% 20 762 68.06 98.6%
50% Hillcrest Corner, Durban 165 500 8.25% 10 088 137.49 98.4%
Sunward Centre, Boksburg 146 000 8.25% 12 031 98.39 97.5%
27.5% of The Bridge, Port Elizabeth 143 329 8.25% 12 117 93.55 96.5%
Boulevard Piazzas, Fricker Road, Illovo 5 600 9.00% 497 125.90 100.0%
Offices 1 874 335 109 408 137.50 98.0%
Tygerberg Office Park 323 185 8.50% 15 569 147.05 92.0%
Golf Park, Mowbray 222 000 9.00% 16 257 122.92 99.7%
Microsoft, Bryanston 194 000 8.25% 9 450 139.33 100.0%
82 Grayston Drive, Sandown 124 000 8.50% 7 226 151.24 90.5%
Tiger Brands, Bryanston 129 000 8.25% 6 773 127.25 100.0%
28 Fricker Road, Illovo 112 000 9.00% 6 138 176.45 100.0%
Bogare, Menlyn, Pretoria 106 000 8.75% 6 301 131.29 100.0%
Nautica, Granger Bay, Cape Town 100 000 8.50% 5 515 157.70 100.0%
Pharos House, Westville Mall, Durban 92 000 8.50% 5 590 124.62 99.4%
4 Fricker Road, Illovo 84 700 8.50% 4 726 156.00 100.0%
The Village, Faerie Glen, Pretoria 79 500 9.00% 6 447 107.87 97.5%
SA Weather Services, Pretoria 71 000 9.00% 4 270 115.94 100.0%
36 Fricker Road, Illovo 69 000 8.75% 4 334 151.27 100.0%
16 Fricker Road, Illovo 64 000 8.50% 3 808 126.23 100.0%
Albion Spring, Rondebosch 53 000 10.00% 3 361 161.21 100.0%
Bremerton Office Park, Port Elizabeth 50 950 9.50% 3 643 114.51 100.0%
Industrial 204 038 21 064 63.67 98.1%
20% of N1 Business Park, Midrand 99 860 8.50% 9 397 65.80 100.0%
30% of Tellumat, Retreat, Cape Town 54 990 10.00% 6 774 64.84 94.2%
25% of Montague Business Park, Cape Town 49 188 9.00% 4 893 58.06 100.0%
Total 7 546 802 439 864 119.32 98.2%
9. LEASE EXPIRIES OVER THE LAST 12 MONTHS
The table below shows a summary of leasing activity in the Acucap portfolio over the last financial year.
Average Average
Expiries and through Average New leases through rent
terminations rent at escalation and renewals for new leases Average escalation
m2 expiry rate at m2 R/m2 rate for new leases
R/m2 expiry
Major retail 22 910 168.42 8.6% 24 815 178.33 8.0%
Other retail 21 530 131.28 8.2% 22 219 141.31 7.6%
Offices 23 187 141.21 8.7% 24 412 130.36 8.2%
Industrial - - - 4 283 55.49 8.5%
The pattern of expiries and renewals can be seen in the context of Acucaps overall portfolio in the table below, which
reconciles the opening and closing gross lettable area, taking into consideration expiries, renewals, new leases, extensions to
GLA, and acquisitions and disposals.
Opening GLA
(excluding Expiries and New leases Net Properties
storage) terminations and renewals Additions sold Closing GLA
Total 442 600 -61 229 61 229 4 075 -6 811 439 864
- let 430 339 -67 627 71 654 4 075 -6 655 431 786
- vacant 12 261 6 398 -10 425 - -156 8 078
10. LEASE EXPIRIES OVER THE NEXT 12 MONTHS
Over the next financial year, leases for 74 324m2 will expire, representing 16.9 % of the portfolio GLA. Details of the expiry rentals
are shown below, together with estimated renewal rentals. For offices, there is a forecast negative reversion of 12.7%, and for
retail, a positive reversion of 6.8% is expected.
Area Net expected
terminating to Net rental / m2 rental / m2 on
31-3-2014 m2 at expiry date renewal
Offices 24 796 150.30 131.20
Retail 49 528 145.70 155.60
Over the longer term, the portfolio continues to show a good, long dated lease expiry profile. The principal renewals in
the retail portfolio over the next 2 years are cyclical renewals at Festival Mall, Key West and the Gardens Centre. The
table below shows the pattern of expiries for all leases in the Acucap portfolio, measured by rental income.
Total Retail Offices Industrial
Vacancy 2.1% 1.5% 0.5% 0.1%
Mar-2014 21.2% 13.7% 7.1% 0.4%
Mar-2015 22.6% 17.1% 5.1% 0.4%
Mar-2016 20.6% 14.2% 6.1% 0.3%
Mar-2017 11.0% 9.4% 1.4% 0.2%
Mar-2018 11.2% 5.9% 5.1% 0.2%
Thereafter 11.3% 7.1% 3.2% 1.0%
Total 100.0% 68.9% 28.5% 2.6%
11. MAJOR TENANTS BY AREA AND INCOME
Acucaps 20 largest tenants account for 49.4% of its rental income, with retail tenants contributing 42.1% and office
tenants 7.3%, in line with the group's high retail weighting in its property portfolio. The tenants listed below indicate
the high quality of Acucaps rental cash flows.
Rental Area
Shoprite 6.0% 11.5%
Edcon 4.2% 4.7%
Pick'n Pay 3.7% 6.1%
SA Government and parastatals 3.3% 3.0%
Foschini 3.2% 2.2%
Pep 3.0% 2.4%
Mr Price Group 2.9% 2.9%
Absa 2.5% 1.6%
Nedbank 2.4% 1.8%
Microsoft 2.4% 2.1%
Massmart 2.1% 3.5%
Standard Bank 1.8% 1.3%
Woolworths 1.8% 4.0%
Truworths 1.7% 1.5%
Clicks 1.7% 1.6%
Tiger Brands 1.7% 1.5%
Famous Brands franchisees 1.5% 0.9%
Virgin Active 1.4% 1.8%
First National Bank 1.3% 0.8%
JD Group 0.9% 1.2%
12. VACANCIES
Total vacancies by income have reduced from 2.8% at the end of March 2012 to 1.8% a year later as a result of the
completion of the Waterfront redevelopment activities at Key West.
The table below shows the vacancy attributable to each segment of the Acucap portfolio by GLA:
Vacancy profile by sector by GLA
% of Total GLA
Retail vacancy 1.2%
Office vacancy 0.5%
Industrial vacancy 0.1%
GLA let 98.2%
13. COST TO INCOME
The benefits of scale, portfolio composition and in-house property administration continue to reflect in Acucaps low net
cost-to-income ratio
2013 2012 2011 2010 2009
Net cost to income 12.0% 11.1% 11.6% 11.5% 11.1%
Increases in the cost of electricity remain a concern, but total consumption of electricity in the Acucap portfolio, measured in
kilowatt hours per m2 of GLA, decreased by 2.24% compared to the same period last year, and further reductions are
expected as the group continues to implement energy efficient technologies at its retail and office buildings.
14. UNIT HOLDER SUMMARY
A summary of Acucaps unit holder profile is set out below. Annual trade in Acucaps linked units was 31% of the total
number of units in issue, indicating a sound level of liquidity, particularly considering the long term nature of many of
Acucaps major unit holders.
Mar-13 Mar-12
Government Employees Pension Fund 12.4% 11.7%
Directors and employees 9.1% 8.6%
Investec Asset Management 8.1% 9.7%
Stanlib 7.3% 7.7%
Old Mutual Asset Management 6.1% 6.8%
Nedbank 5.0% 5.9%
Thesele Group (Pty) Limited 4.6% 4.7%
52.6% 55.1%
Other shareholders 47.4% 44.9%
100.0% 100.0%
Number of unitholders 5 117 4 194
Weighted average units 180 189 388 171 939 337
Units traded 56 204 370 36 118 038
Annualised liquidity 31.2% 21.0%
15. PROSPECTS
The Acucap property portfolio has remained defensively positioned throughout a prolonged period of weak economic
growth in South Africa. The portfolio has been continuously refreshed, individual assets have been recapitalised as
necessary, and tenant profiles optimised and remixed across the retail portfolio. The board expects distributions for 2014
to increase by 5% to 6%. Longer term, growth in distributions can be expected to move into the 5% to 8% range, in line
with the potential of Acucaps high quality property portfolio.
The above information has not been reviewed or reported on by Acucaps auditors.
16. PAYMENT OF DEBENTURE INTEREST
Notice is hereby given that a final distribution of 156.22 cents per linked unit has been approved
in respect of the six month period ended 31 March 2013. The last date to trade the linked units
cum distribution is Friday, 28 June 2013 and the record date will be Friday, 5 July 2013. The
linked units will start trading ex-distribution from Monday, 1 July 2013. Distributions will be made
to unit holders on Monday, 8 July 2013.
Linked unit certificates may not be dematerialised or rematerialised between Monday, 1 July
2013 and Friday, 5 July 2013, both days inclusive.
On behalf of the board
BS KANTOR PA THEODOSIOU
Chairman Managing Director
13 June 2013
Registered Office
Suite A11, Westlake Square
Westlake Drive
Westlake
CAPE TOWN
Transfer secretaries:
Computershare Investor Services Proprietary Limited
70 Marshall Street
JOHANNESBURG
http://www.acucap.co.za
info@acucap.co.za
Share Code: ACP
ISIN: ZAE000037651
Directors: Prof BS Kantor (Chairman), PA Theodosiou*# (Managing Director), FM Berkeley, RC Frolich,
ND Mandindi, C B Marlow *, M S Moloko, JH Rens*, BE Stevens, NDC Whale
Company secretary: H H-O Steyn
* Executive # British
Date: 13/06/2013 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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