Wrap Text
Reviewed results for the year ended 30 June 2013 and
interest payment declaration
Hospitality Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2005/014211/06)
Share code for A-linked units: HPA ISIN for A-linked units: ZAE000076790
Share code for B-linked units: HPB ISIN for B-linked units: ZAE000076808
("Hospitality" or "the Fund" or "the company")
Reviewed Results for the year ended 30 June 2013 and
interest payment declaration
Comments
1. Introduction
The Fund returned strong year-on-year distribution growth, underpinned by
the recovering hospitality business environment following the adverse industry-
wide environment between 2009 and 2011. The successful resolution of
Hospitality's debt refinancing issues in the previous year also contributed to the
improved performance. Hospitality has exceeded the Forecast set out in its rights
offer circular dated 28 May 2012 ("Forecast"), for the year ended 30 June 2013
("the period").
The A-linked unit distribution grew by 19,1% to 134,63 cents, in line with
the Fund's distribution structure and the Forecast. Distribution on the B-linked
unit showed an increase of 128,6% to 18,08 cents compared to the previous
corresponding period and exceeded the Forecast by 28,1%.
The A-linked units have a preferential claim to earnings with capped growth at the lower of CPI
or 5% from the entitlement in the prior comparable period. The B-linked units receive the balance
of the earnings.
Hospitality continues to enhance the overall quality of its property portfolio, in
line with its strategy. Most notably, the Radisson Blu Gautrain Hotel that is located
in the heart of Sandton was acquired for R443,4 million during the year. Selective
refurbishments were also carried out at other properties to ensure their continued
appeal.
2. Trading environment
According to STR Global, the hotel industry reported a year-on-year increase
in occupancy of 4,9% to 61,2% and average room rates ("ARR") were up 6,8%
to R930, resulting in revenue per available room ("RevPAR") growth of 12,0%
for the year ended June 2013. The Fund's trading figures for that portion of its
portfolio which is subject to variable rental income (i.e. dependent on operational
earnings) continued to track industry trends with an increase in occupancy of 4,4%
to 60,1%, while ARR rose 4,8% to R1020, leading to RevPAR growth of 9,4% for
the 12-month period. The disparity between the Fund's RevPAR growth and the
industry was more marked in the first six months. This was largely attributable to
abnormal income from a product launch in the prior year at the Westin Cape Town
and a reduction in available room stock at the Radisson Blu Waterfront during a
refurbishment. Excluding these anomalies, the Fund's performance would have been
aligned to hospitality industry trends.
The recovery trend in the industry has been underpinned by consistent growth in
RevPAR since October 2011.The supply and demand fundamentals in the domestic
trading environment are improving despite muted economic growth. Demand
is improving as the oversupply of hotel rooms dissipates with no new major
hotels earmarked for development. In order to manage its utility costs, the Fund
completed the roll out of its energy saving initiatives throughout the portfolio by
June 2013.
Insofar as the Fund's fixed lease properties are concerned, management constantly
monitors and interacts with the tenants in order to understand their underlying
business performance and evaluate the serviceability of rentals.
3. Results
Rental income was R5,9 million (1,7%) higher than the Forecast, growing by
R29,7 million (9,1%) compared to 2012. The Fund's overall rental income growth
was dampened by the impact of the average rental increase of 3,3% on the fixed lease
portion of the portfolio, contributing 35% of total rental income. The Radisson Blu
Gautrain Hotel had a marginal impact on revenues, contributing to the last two months of the
financial year after the acquisition became effective on 30 April 2013. The rental
income growth for the portfolio's other 22 properties subject to variable rental was 10,5%, driven mainly
by improved sentiment in the hospitality industry and the higher ARR's achieved
by the Fund.
Fund expenses declined by R10,4 million (25,87%) compared to 2012, but were
R2,0 million higher than Forecast. The decline was primarily due to the impact in
the prior year of the Absa bridge loan fee of R6,7 million, the Paulaner Brauhaus
rental loss and closure costs of R4,8 million and a bad debt allowance of R3,8 million
raised as a result of tenant arrears. The increase to Forecast was due to higher staff
incentive costs and additional amortisation of debt raising fees.
Having successfully addressed the debt refinancing issues in the prior year, net
finance costs showed a significant decrease of R44,3 million (25,1%) and came
in R4,5 million (3,3%) lower than Forecast.The decline was due to the rights offer in
2012 which reduced overall debt levels and eliminated the Absa penalty bridge loan
interest of R13,8 million that was paid in the last four months of 2012. The stable
domestic interest rate environment has also been beneficial.
Distributable earnings per combined linked unit grew by 26,2% to 152,71 cents
compared to the previous financial year, exceeding the Forecast of 148,74 cents
by 2,7%. The A-linked unit distribution of 134,63 cents increased by 19,1%, and
in line with Forecast, and due to the once off impairment of the bridge loan in 2012.
The reported distribution of the B-linked unit of 18,08 cents is 128,6% higher than
the previous year and 28,1% above Forecast.
For the last six month period the B-linked unit distribution reflected growth of 86% to
the Forecast.
The following table reflects the operating financial results for the year ended
30 June 2013 compared to the Forecast and the previous financial year.
Year ended 30 June
FY 2013 FY 2012
Actual Forecast Variance Prior year Variance
(R'000) (R'000) (R'000) % (R'000) (R'000) %
Contractual
Rental 356 337 350 357 5 980 1.7 326 681 29 656 9.1
Profit on sale
of properties 948 948 100.0 948 100.0
Fund
Expenses (29 878) (27 898) (1 980) (7.1) (40 289) 10 411 25.8
Net Finance
Costs (132 320) (136 899) 4 579 3.3 (176 705) 44 385 25.1
Profit before
debenture
interest 195 087 185 560 9 527 5.1 109 687 85 400 77.9
Taxation (1 158) (1 158) (100.0) (84) (1 074) (1278.6)
Recoupment
of debenture
interest 6 130 6 130 100.0 15 469 (9 339) (60.4)
Income from
associates 125 125 100.0 222 (97) (43.7)
Debenture
Interest (200 184) (185 560) (14 624) (7.9) (125 293) (74 891) (59.8)
Distribution
A-linked
unit (176 464) (167 965) (8 499) (5.1) (118 272) (58 192) (49.2)
Distribution
B-linked
unit (23 720) (17 594) (6 126) (34.8) (7 021) (16 699) (237.8)
Number of
linked units 137 238 124 761 12 476 10.0 124 761 12 476 10.0
Distribution
A-linked unit
(cents) 134.63 134.63 113.08 21.55 19.1
Interim 66.51 66.51 63.34 3.17 5.0
Final 68.12 68.12 49.74 18.38 37.0
Distribution
B-linked unit
(cents) 18.08 14.11 3.97 28.1 7.91 10.17 128.6
Interim 9.19 9.33 (0.14) (1.5) 7.91 1.28 16.2
Final 8.89 4.78 4.11 86.0 8.89 100.0
Combined
distribution
(cents) 152.71 148.74 3.97 2.7 120.99 31.72 26.2
Interim 75.70 75.84 (0.14) (0.2) 71.25 4.45 6.2
Final 77.01 72.90 4.11 5.6 49.74 27.27 54.8
4. Property Portfolio
The Fund's portfolio comprises interests in 27 hotel and resort properties in South
Africa. As at 30 June 2013, the carrying value of the portfolio was R4,56 billion.
In line with its strategy of focusing on large, well located properties with strong
brands in major metropolitan areas, the Fund has identified certain non-core
properties amounting to R318,9 million for disposal. It is currently in various stages
of negotiation regarding the disposals. The net asset value per linked unit as at
30 June 2013 was R10,95, an increase of 9,5% from 2012 primarily as a result of
an increase in the valuation of the standing portfolio. The weighted average lease
expiry period is 9,04 years.
In April 2014, the ownership of the Courtyard Cape Town property, currently
50:50 owned by the Fund and City Lodge, will revert to the University of Cape
Town. The valuation of this property was written down to zero in June 2013 from
R0,95 million in the prior year and there will be no further impairment in 2014.
5. Real Estate Investment Trust (REIT)
Hospitality's application for REIT status was approved by the JSE Limited effective
from 1 July 2013. In terms of tax legislation REITS are exempt from capital gains tax
and profits are effectively taxed in the hands of investors providing an investment
akin to direct ownership of the underlying property.
6. Funding
The group's debt facilities with financial institutions as at 30 June 2013 amounted to
R1,73 billion. Total funds outstanding on these facilities were R1,57 billion resulting
in a loan to value (LTV) ratio (total interest bearing liabilities/investment property
value) of 34,4% (2012: 35,2%). The interest cover ratio (ICR) was 2,47 which
meets the minimum covenant level required by the debt providers. The Fund has
R300 million debt maturing in June 2014 and is currently engaging with financial
institutions regarding the refinancing of this facility. The average cost of borrowings
was 8,56% (2012: 9,74%) for the period under review with 44% of the group's
borrowings at year-end subject to fixed interest rates through interest rate swap
structures. The interest rate swap agreements that were in place with Absa at year-
end amounted to R693,3 million.
The Fund continually plans and strategises the best possible method of funding new acquisitions
and replacing debt. This includeds considering new unit issues, replacement of bank funding and
the Group's note programme. When issuing new dept the Group intends to spread the maturity so
that it is not dependent on large amounts in any one single year.
Debt facilities
Facility Expiry Margin
Nedbank R000's
Loan 1 176 300 July 2015 3 month JIBAR plus 2,9%
Loan 2 400 000 May 2016 3 month JIBAR plus 2,9%
Loan 3 30 250 May 2016 3 month JIBAR plus 2,9%
Loan 4 150 000 June 2015 3 month JIBAR plus 2,7%
Loan 5 150 000 June 2016 3 month JIBAR plus 2,84%
906 550
Absa Bank
Facility A 2 year 200 000 June 2014 3 month JIBAR plus 2.05%
Facility B 3 year 150 000 June 2015 3 month JIBAR plus 2.47%
Facility C 4 year 100 000 June 2016 3 month JIBAR plus 2.84%
Facility D revolving loan 100 000 June 2014 3 month JIBAR plus 2.05%
550 000
Corporate bonds
Secured HPF 01 150 000 April 2016 3 month JIBAR plus 1.82%
Unsecured HPF 02 40 000 April 2015 3 month JIBAR plus 2.4%
Unsecured HPF 03 80 000 April 2016 3 month JIBAR plus 2.7%
270 000
Total facility 1 726 550
The following swap agreements were in place at year end:
FY 2013 FY 2012 Nominal rate Maturity date
Swap 1 346.67 7.42% 11 June 2013
Swap 2 346.67 346.67 7.75% 11 June 2014
Swap 3 346.67 346.67 7.98% 11 June 2015
693.34 1 040.01
7. Acquisitions and disposals
In line with the Fund's acquisition strategy Hospitality secured
the Radisson Blu Gautrain Hotel for a total consideration of R443.4 million
on 30 April 2013.The acquisition was funded by a R275 million vendor consideration
placement, the issuance of R150 million secured notes and the private placement of
R18.4 million unsecured notes.
The Radisson Blu Gautrain Hotel is highly visible, directly across from the
Sandton Gautrain Station on Rivonia Road, which is the main transport hub in
the Sandton CBD. The hotel is made up of various sections of the sectional title
scheme known as Sandton Eye and comprises 216 rooms, 8 conference facilities,
the Central One Restaurant and Bar, an outdoor bar and swimming pool, as well
as a fitness centre.
Based on its anticipated trading performance and cost of funding, the property
is expected to be earnings accretive from the outset, with a projected yield of
approximately 8.15% in year one, with growth in rental for year two expected to be
approximately 15%.
The seller has provided a limited rental guarantee for the first
two years of trading following registration of transfer.
8. Development and capital projects
The Fund invested a total of R19.7 million to complete various refurbishment
projects during the period under review.
Details of the significant refurbishment projects are as follows:
- Protea Hotel The Richards, located in Richards Bay, is undergoing a R4,5 million
renovation to upgrade the soft furnishings in 97 bedrooms.
- A R6,0 million project at the Protea Hotel Hluhluwe & Safaris, located close
to the Umfolozi/Hluhluwe Game Reserve. The renovation of the property's
75 bedrooms will be completed ahead of schedule and before the peak summer
trading season.
Although two of the refurbishment projects are being carried out on properties
earmarked for disposal, these investments will ensure that they maintain their
market positioning while enhancing their appeal to potential buyers.
Virtually all fixed and variable lease properties have been refurbished during the last five years,
and therefore require minimal further capital expenditure in the short term.
The high quality of the Fund's properties will continue to provide a solid platform
to benefit from improved trading in a recovering market.
The application process for the development rights on the Phase 2 land at Arabella
Hotel and Spa is in progress. The Fund submitted its revised environmental impact
assessment on 16 July 2013, which incorporated adjustments to the development
to meet the additional requirements of the Ministry of Local Government,
Environmental Affairs and Development Planning, while still positioning Arabella
to attain its full potential as a premier golf and leisure resort of international
standing. This new development option that has been tabled is confined to areas of
low environmental sensitivity and is also more cost effective with regard to the provision of bulk
services infrastructure and roads. It also has the added benefit of providing a greater
spectrum of recreational facilities to expand the resort's existing offering. The Fund
expects a response from the relevant authorities in 2013. If the development rights
are secured, the Fund will market this scheme with a view to realising a profit from
the sales of 352 residential stands, which will be classified as distributable income.
9. Liquidity
During the year, 27.1% of the A-linked units and 41% of the B-linked units were
traded on the JSE Limited.
10. Board of directors
New appointments to the board during the year were as follows:
- Mr Donald Bowden was appointed as an independent non-executive director
to the Board with effect from 24 August 2012 and took up the position
of Chairman from Mr Willy Ross on 30 June 2013. Mr Ross had assumed the role
of Acting Chairman following Mr Frank Berkeley's resignation in February 2012;
- Mr Syd Halliday was appointed as Independent Non-Executive Director on
30 June 2013;
- Mrs Anitha Soni was appointed as Independent Non-Executive Director
on 30 June 2013;
- Ms Zola Ntwasa was appointed as Independent Non-Executive Director on
8 July 2013.
The following resignations from the board of directors took place during the
financial year:
- Mr Youseph Aminzadeh resigned as non-executive director with effect from
1 December 2012;
- Mr William Midgley has resigned as non-executive director with effect from
29 March 2013;
- Mrs Brenda Madumise resigned as non-executive director from the board on 30 April 2013.
The Board thanks Messrs Aminzadeh, Midgley and Madumise for their invaluable
contributions.
Mr Gerald Nelson, who was the co-founder of the Fund and has held the position
of Chief Executive Officer ("CEO"), retired as CEO from the Fund at the end of
June 2013 and remains on the board as a non-executive director. He was succeeded
by Mr Andrew Rogers, the deputy CEO of the Fund, assisted by Mr Ridwaan Asmal
in his continuing role as Financial Director.
Following the reconstitution of the Board, the majority of the directors are non-
executive and independent as recommended in terms of King III Code of Corporate
Governance.
11. Prospects
The outlook for the hospitality industry is positive, particularly in major cities where
business volumes have shown a strong recovery. Whilst room rate growth has been
muted, and has not achieved the levels required to justify new hotel developments, the
lack of new capacity is likely to lead to demand outstripping medium term supply
in the major markets. Room rates remain lower than the long term trend that was
reflected prior to 2008 and are largely still recording rates last seen at that time.
The high cost of land, the limited availability of capital and a residual perception of
oversupply in major nodes will mean that the pace of new hotel developments is
likely to be slow. Currently acquisition opportunities are providing higher relative
returns than bringing new developments on stream.
The Fund's focus over the next year continues to be on optimally growing room
rates in order to further improve its profitability as occupancies continue to track
upwards across the industry.
Distributions for the 12 months ending 30 June 2014 are expected to be at least in
line with the Forecast of 141,36 cents per A-linked unit and 26,72 cents per B-linked unit,
earned evenly across the distribution periods.
The Fund's underlying performance in 2015 is likely to be impacted by a change
within its fixed lease portfolio as the current lease at Birchwood Hotel & OR Tambo
Conference Centre converts into a fixed and variable lease at the end of June 2014.
This is expected to result in a reversion in rental at Birchwood of between 10%
and 20% in the 2015 financial year. The Fund is currently exploring yield enhancing
opportunities to expand this property's income stream, thereby mitigating the
impact of the rental dilution.
12. Payments of debenture interest
Unitholder's will receive debenture interest payment number 15 for the six-month
period ended 30 June 2013 of 68,12 cents per A-linked unit and 8,89 cents per
B-linked unit.
Last day to trade cum interest 6 September 2013
Linked units will trade ex-interest 9 September 2013
Record date 13 September 2013
Payment date 16 September 2013
The above distribution is not regarded as a dividend and therefore no Dividend's
Tax is payable on the distribution amount.
Unitholders may not dematerialise or rematerialise their linked units between
Monday, 9 September 2013 and Friday, 13 September 2013, both days inclusive.
By order of the Board
D G Bowden A S Rogers
(Chairman) (Chief Executive Officer)
20 August 2013
Directors: D G Bowden (Chairman)*+, A S Rogers (CEO), K H Abdul-
Karrim*+, R Asmal, L de Beer *+, S A Halliday *+, Z N Kubukeli *+,
GA Nelson*, Z Ntwasa *+, WC Ross *+, A Soni*+
(*Non-Executive, +Independent)
Registered Office: The Zone 2, Loft Offices East Wing, 2nd Floor, Cnr Oxford Road
and Tyrwhitt Avenue, Rosebank, 2196
Tel: +27 11 994 6300
Fax: +27 11 994 6301
Email: info@hpf.co.za
BASIS OF PREPARATION AND ACCOUNTING POLICIES
These results were prepared by the Group Financial Manager,
Mr R Erasmus CA (SA), under the supervision of the Financial Director, Mr R Asmal.
The condensed annual financial statements have been prepared in accordance with
the recognition and measurement requirements of International Financial Reporting
Standards (IFRS), including the presentation and disclosure requirements of IAS34 (Interim
Financial Reporting), the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and the requirements of the Companies Act of South Africa, 2008. KPMG
Inc, the independent auditor, has reviewed the financial statements and expressed an
unqualified review opinion, which is available for inspection at Hospitality's registered
office. The accounting policies used are consistent with those used in the annual financial
statements for the year ended 30 June 2012.
STATEMENTS OF COMPREHENSIVE INCOME
for the year ended 30 June 2013
Reviewed Audited
2013 2012
R'000 R'000
Revenue 356 042 315 956
Rental income contractual 356 337 326 681
straight-line accrual (295) (10 725)
Expenditure (29 878) (40 289)
Operating expenses (29 878) (40 289)
Operating profit 326 164 275 667
Transaction costs on business combinations (1 975)
Profit on properties held for sale 948
Net finance cost (132 320) (176 705)
Finance income 1 819 1 214
Finance costs (134 139) (177 919)
Profit before debenture interest, goodwill, fair value
adjustments and taxation 192 817 98 962
Recoupment of debenture interest 6 130 15 469
Debenture interest (200 184) (125 293)
Loss before fair value adjustments, goodwill and
taxation (1 237) (10 862)
Gain on bargain purchase 7 615
Fair value adjustments 199 356 (218 776)
Investment properties, before straight-lining
adjustment 218 441 (169 132)
Straight-line rental income accrual 295 10 725
Total fair value of investment properties 218 736 (158 407)
Contingent consideration
Goodwill (41 400) (38 822)
Interest-rate swaps 22 020 (21 547)
Profit/(loss) before taxation 205 734 (229 638)
Debenture discount amortisation (5 635) (174)
Equity accounted profit from associate after tax 126 222
Taxation 35 572 14 053
Total profit/(loss) and comprehensive income for
the year 235 797 (215 537)
Reconciliation between earnings, headline earnings
and distributable earnings
Total profit/(loss) and comprehensive income for
the year 235 797 (215 537)
Adjustments: Debenture interest 200 184 125 293
Profit/(loss) (linked units) 435 981 (90 244)
Adjustments:
Gain on bargain purchase (7 615)
Goodwill impairment 41 400 38 822
Fair value investment properties revaluation, net
of tax (255 172) 154 994
Fair value straight line rental income (295) (10 725)
Headline earnings (linked units) 214 299 92 847
Fair value interest rate swaps (22 020) 21 547
Transaction costs on business combinations 1 975
Debenture discount amortisation 5 635 174
Straight line rental income 295 10 725
Distributable earnings 200 184 125 293
Number of units/shares
A-linked unit 137 237 530 124 761 391
B-linked unit 137 237 530 124 761 391
Weighted average number of units/shares
A-linked unit 129 273 310 90 040 080
B-linked unit 129 273 310 90 040 080
Distribution per linked unit (cents)
A-linked unit 134.63 113.08
Interim 66.51 63.34
Final 68.12 49.74
B-linked unit 18.08 7.91
Interim 9.19 7.91
Final 8.89
152.71 120.99
Profit/(loss) per linked units (cents)
A-linked unit 168.63 (50.11)
B-linked unit 168.63 (50.11)
337.26 (100.22)
Headline earnings per linked unit (cents)
A-linked unit 82.89 51.55
B-linked unit 82.89 51.55
165.78 103.10
Earnings per ordinary share (cents) 91.20 (119.69)
STATEMENTS OF FINANCIAL POSITION
as at 30 June 2013
Reviewed Audited
2013 2012
R'000 R'000
ASSETS
Non-current assets 4 324 662 3 758 599
Investment properties 4 246 848 3 639 508
Straight-line rent income accrual 4 152 4 447
Investment properties and related accrual 4 251 000 3 643 955
Furniture, fittings and equipment 899 482
Goodwill 72 600 114 000
Investment in associates 163 162
Current assets 448 263 275 678
Non-current assets held for sale 318 900 217 900
Properties held for trading 19 708 18 980
Trade and other receivables 42 260 23 356
Cash and cash equivalents 67 395 15 442
Total assets 4 772 925 4 034 277
EQUITY AND LIABILITIES
Equity 690 752 370 883
Share capital and share premium 476 199 392 127
Retained earnings 73 884 115 278
Fair value reserve 140 669 (136 522)
Non-current liabilities 3 708 134 3 563 628
Debentures 2 314 441 2 124 285
Interest-bearing liabilities 1 372 627 1 359 527
Derivative liability 21 066 43 086
Deferred taxation 36 730
Current liabilities 374 039 99 766
Trade and other payables 67 151 37 631
Short term position of Interest-bearing
liabilities 200 000
Taxation 1 153 84
Debenture interest payable 105 735 62 051
Total equity and liabilities 4 772 925 4 034 277
A. Net asset value per linked unit (Rand)
A-linked unit 10.95 10.00
B-linked unit 10.95 10.00
B. Net asset value per linked unit (excluding deferred
taxation) (Rand)
A-linked unit 10.95 10.15
B-linked unit 10.95 10.15
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2013
Fair
Share Share Retained value
capital premium earnings reserve Total
R'000 R'000 R'000 R'000 R'000
Balance at 30 June 2011 18 342 844 123 718 70 575 537 155
Loss/Total comprehensive loss
for the year (215 537) (215 537)
Transactions with owners,
recorded directly in equity 7 49 258 207 097 (207 097) 49 265
Issue of shares 7 59 407 59 414
Share issue expenses, net
of tax (10 149) (10 149)
Transfer from fair value
reserve investment
properties (net of deferred
tax) 154 995 (154 995)
Transfer to fair value reserve
contingent consideration 30 555 (30 555)
Transfer to fair value reserve
interest rate swaps 21 547 (21 547)
Balance at 30 June 2012 25 392 102 115 278 (136 522) 370 883
Loss/Total comprehensive loss
for the year 235 797 235 797
Transactions with owners,
recorded directly in equity 2 84 070 (277 191) 277 191 84 072
Issue of shares 2 84 321 84 323
Share issue expenses, net
of tax (251) (251)
Transfer from fair value
reserve investment
properties (net of deferred
tax) (255 171) 255 171
Transfer to fair value reserve
interest rate swaps (22 020) 22 020
Balance at 30 June 2013 27 476 172 73 884 140 669 690 752
STATEMENT OF CASH FLOWS
for the year ended 30 June 2013
Reviewed Audited
2013 2012
R'000 R'000
Cash flows from operating activities
Cash generated from operations 336 430 275 121
Finance income received 1 819 1 214
Finance costs paid (134 139) (177 919)
Taxation (89)
Distribution to unitholders (156 500) (136 235)
Net cash inflow/(outflow) from operating activities 47 521 (37 819)
Cash flows from investing activities
Acquisition and development of investment properties (481 989) (75 257)
Acquisition of properties held for trading (728) (2 040)
Acquisition of fixtures,furniture and equipment (799) (35)
Dividends received from associates 125
Loan repaid from associate 60
Net cash outflow from investing activities (483 391) (77 272)
Cash flows from financing activities
Proceeds from the issue of linked units 274 974 530 280
Share issue expenses paid (251) (10 149)
Interest-bearing liabilities raised/(repaid) 213 100 (380 815)
Net cash inflow from financing activities 487 823 139 316
Net increase in cash and cash equivalents 51 953 24 225
Cash and cash equivalents at beginning of year 15 442 (8 783)
Cash and cash equivalents at end of year 67 395 15 442
CONDENSED SEGMENTAL INFORMATION
for the year ended 30 June 2013
Information regarding the results of each reportable segment is included below.
Performance is measured based on operating profit before finance costs, as included in
the internal management reports that are reviewed by the group's CEO. Segment profit
is used to measure performance as management believes that such information is the
most relevant in evaluating the results of certain segments relative to other entities that
operate within these industries. Inter-segment pricing is determined on an arm's length
basis.
Variable Total of all
Fixed lease F & V lease lease Head operating
R000's agreements agreements agreements Office segments
Statement of
Comprehensive Income
30 Jun 2013
Segment revenue 124 756 214 108 17 473 356 337
Expenditure (29 878) (29 878)
Segment results 124 756 214 108 17 473 (29 878) 326 459
Statement of
Comprehensive Income
30 Jun 2012
Segment revenue 120 796 192 965 12 920 326 681
Expenditure (40 289) (40 289)
Segment results 120 796 192 965 12 920 (40 289) 286 392
Statement of Financial
Position 30 Jun 2013
Non-current assets
Investment properties 927 000 3 064 000 260 000 4 251 000
Current assets
Non-current assets
held for sale 79 000 239 900 318 900
Trade and other
receivables 7 743 1 660 223 32 634 42 260
Segment assets 1 013 743 3 305 560 260 223 32 634 4 612 160
Statement of Financial
Position 30 Jun 2012
Non-current assets
Investment properties 1 042 000 2 352 000 249 955 3 643 955
Current assets
Non-current assets
held for sale 217 900 217 900
Trade and other
receivables 4 613 9 068 (45) 9 720 23 356
Segment assets 1 046 613 2 578 968 249 910 9 720 3 885 211
Web: www.hpf.co.za
Date: 21/08/2013 01:26:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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