Wrap Text
Condensed unaudited consolidated interim financial results for the six months ended 30 June 2013
SA CORPORATE REAL ESTATE FUND
SA Corporate Real Estate Fund
("SA Corporate" or "the Fund")
Incorporated in the Republic of South Africa
Share Code: SAC; ISIN Code: ZAE000083614
A Collective Investment Scheme in property registered in terms of the Collective
Investment Schemes Control Act, No. 45 of 2002 and managed by SA Corporate Real
Estate Fund Managers Limited ("SA Corporate Fund Managers")
(Registration number 1994/009895/06)
REIT status approved
CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2013
Interim distribution growth
- 7.3% higher than June 2012
- 8.7% higher than December 2012
Capital structure
- Low gearing of 14.5%
- 58.9m units repurchased
- Premium to NAV increased to 8.8%
Portfolio activity
- Disposal of 4 properties for R116,5m
- Purchased 1 property for R65,0m and contracted 5 properties for R575,0m
Property performance
- Industrial vacancy as % of GLA improved to 0.7%
- Standing portfolio net property income increase of 5.4%
INTRODUCTION
SA Corporate is a JSE listed Property Unit Trust (granted REIT status which will come into effect on 1 January 2014) which owns a portfolio of retail, industrial and commercial buildings located primarily in the major metropolitan areas of South Africa.
REVIEW OF FINANCIAL RESULTS AND PORTFOLIO PERFORMANCE
The interim distribution for the six months to June 2013 (16.28cpu) increased by 7.3% relative to the comparable period in June 2012 (15.17 cpu) and increased by 8.7% relative to the final distribution for the six months to December 2012 (14.98 cpu). While the current period was still impacted by disposals, the Fund achieved standing portfolio net property income growth of 5.4%. The premium to net asset value (NAV) increased to 8.8% at June 2013 (NAV: 362cpu, Unit price: 394cpu), compared to a premium of 3.2% at June 2012.
Industrial rental growth (7.3%) was underpinned by positive rental reversions and good tenant retentions of 65.1%. Industrial tenant retentions were impacted by the expiry of a 30 000m2 distribution centre which, although not renewed, was re-let without any downtime. Retail rental income decreased by 15.3%. The reduction is attributable to a combination of the impact of disposals (14 properties in 2012 and 4 in 2013) and a 1.3% increase in vacancies. Retail rental income on the standing portfolio has improved from 4.7% growth as at June 2012 to 6.2% growth as at June 2013, arising from strong tenant retentions (87.4%) and positive reversions (0.9%). Commercial rental income decreased by 11.7%. This reduction is attributable to combination of the impact of disposals and a 5.4% increase in vacancies relative to the comparable period. Commercial rental income on the standing portfolio increased by 1.8%. The total standing portfolio rental (excluding recoveries and turnover rental) increased by 5.6%, mainly due to improved tenant retention and positive rental reversions.
Property expenses decreased by 4.0% compared to June 2012 as a result of the impact of the disposals. Property expenses in respect of the standing portfolio increased by 9.4%. The standing portfolio municipal costs representing 59.7% of property expenses increased by 10.7%, due to an increase in electricity, rates and water costs of 11.3%, 8.8% and 20.4% respectively. The standing portfolio property expenses excluding municipal costs increased by 7.6%. This is driven largely by the increase in Transnet ground rentals representing 3.7% of the total increased costs with the rest of the cost increasing by 3.9%.
Net interest expense decreased by 46.3% for the 6 months to June 2013 compared to the same period in 2012. The reduction is attributable to the settlement of more expensive debt; injection of disposal proceeds into flexible debt facilities and as well as the restructure of the swap facilities.
Fund expenses increased by 34.2% for the 6 months to June 2013, attributable to a further provision for VAT attribution liability to bring this in line with the potential liability to SARS (representing 28.3% of the increase) and increased service fees due to unit price growth (representing 5.5% of the increase). The VAT provision is still being reviewed by SARS and subject to query by the Fund.
The 58,896,063 units repurchased in the open market in January and February 2013, has given rise to a lapsed distribution of R8.8m, as these were purchased cum dividend. These lapsed distributions are available for redistribution as part of the interim distribution.
The breakdown of distributable earnings is set out below:
6 months to 6 months to 12 months to
30.06.2013 30.06.2012 31.12.2012
DISTRIBUTABLE EARNINGS (R000) Unaudited Unaudited Audited
Rent (excluding straight line rental
adjustment) 424,333 448,382 893,877
Net property expenses (47,664) (56,074) (116,803)
Property expenses (206,144) (216,693) (442,587)
Recovery of property expenses 158,480 160,619 325,784
Net property income 376,669 392,308 777,074
Taxation on distributable earnings 103 698 699
Interest income from associate
company (Oryx) - 1,402 1,402
Net funding cost (33,095) (61,589) (108,655)
Interest income 10,519 12,115 30,547
Interest expense (43,614) (73,704) (139,202)
Fund expenses (30,174) (22,481) (54,707)
Lapsed distribution 8,812 795 795
Distributable earnings 322,315 311,133 616,608
Units in issue (000) 1,980,093 2,050,917 2,038,989
Weighted units in issue (000) 1,991,406 2,065,576 2,057,569
Distribution (cents per unit) 16.28 15.17 30.15
Interim 16.28 15.17 15.17
Final - - 14.98
PROPERTY VALUATIONS
The value of the Fund's independently valued property portfolio increased by R239,2m (2.9%) to R8,4bn as at June 2013 (December 2012: R8,1bn). The standing portfolio, representing properties not under development and held for the full 12 months to June 2013, increased by R278,5m (3.5%) from December 2012.
The capitalisation and discount rates in the Fund's portfolio at 30 June 2013 was calculated on a weighted basis:
Property type Capitalisation Discount rate (%) Growth in standing
rate (%) portfolio (%)
30.06.2013 31.12.2012 30.06.2013 31.12.2012 30.06.2013
Industrial 9.4 9.5 14.9 15.0 2.9
Retail 8.8 9.0 14.3 14.5 4.7
Commercial 9.8 9.9 15.3 15.4 0.6
Portfolio total 9.2 9.3 14.7 14.8 3.5
The portfolio valuation contributed to a 9.7% increase in the NAV of 362cpu, (June 2012: 330cpu).
PORTFOLIO INVESTMENT ACTIVITY
The portfolio comprised 136 properties (147 properties as at June 2012 and 139 properties as at December 2012). The sectoral and geographic weightings by value as at 30 June 2013 are set out below:
Sectoral Spread
Retail
46%
R3,9bn
393 955 m2
27 properties
Industrial
45%
R3,7bn
697 234 m2
88 properties
Commercial
9%
R0,8bn
77 532 m2
21 properties
Geographic Spread
Gauteng (GT)
47%
R3,9bn
602 335 m2
65 properties
KwaZulu-Natal (KZN)
44%
R3,7bn
459 077 m2
54 properties
Western Cape (WC)
7%
R0,6bn
82 828 m2
11 properties
Other
2%
R0,2bn
24 481 m2
6 properties
Developments:
Properties Cost Completion Yield Sector Region
(Rm) date forecast 1st
12 months
(%)
Corner of Rudo Nel &
Tudor Streets, Jet Park 39 11/2013 10.8 Industrial Gauteng
Middelburg Pick 'n Pay,
Middelburg 5 07/2013 11.6 Retail Mpumalanga
Town Square Shopping
Centre, Weltevreden Park 9 11/2013 8.4 Retail Gauteng
Acquisitions:
Property Cost Acquisition Yield Sector Region
(Rm) date forecast 1st
12 months
(%)
PwC, 102 Essenwood
Road, Durban 65,0 05/2013 10.6 Office KwaZulu-
Natal
Contracted and conditional acquisitions:
Properties Purchase price (Rm) Expected Yield (%)
World Trade Center, Sandton 360,0 9.0%
Eveready & Continental Tyres,
New Brighton, Port Elizabeth 124,5 9.0%
Nampak, Denver; UPM Raflatac,
Longmeadow and Wepco Tools,
Founders View 90,5 9.0%
Total 575,0 9.0%
Disposals:
Properties Transfer Gross Carrying Exit yield
date selling value at on sale
price date of price (%)
(Rm) sale (Rm)
425 West Street, Durban 01/2013 54,5 54,5 10.0
The Ridge, Wilgeheuvel 03/2013 30,0 30,0 9.0
Clubview Corner, Pretoria 01/2013 27,0 29,4 8.4
Main Street, Gingindlovu 06/2013 5,0 5,4 6.6^
Total 116,5 119,3 9.2#
Contracted disposals:
Properties Expected Gross Carrying Exit yield
Transfer selling value at on sale
date price 30 June price (%)
(Rm) 2013(Rm)
106 Johan Avenue, Sandton 07/2013 35,0 35,0 4.4*
131 Jan Hofmeyer Road,
Westville 08/2013 23,9 23,9 7.8^
13 Wellington Road,
Parktown 08/2013 17,8 17,8 6.6^
Philani Valley Shopping
Centre, Umlazi 09/2013 40,5 40,5 3.5
Total 117,2 117,2 5.1#
* Transferred in July 2013
# Weighted on gross selling price
^ Estimated yield as building is fully vacant
LEASE EXPIRIES AND VACANCIES
Vacancies in terms of rentable area and rental income were as follows:
Property Vacancy as % of GLA* Vacancy as % of rental income
type
30.06.2013 31.12.2012 30.06.2012 30.06.2013 31.12.2012 30.06.2012
Industrial 0.7 1.3 3.7 0.4 1.5 2.2
Retail 11.9 10.6 11.5 6.2 5.8 5.9
Commercial 19.9 19.2 14.5 14.1 14.1 9.5
Portfolio
total 6.0 5.9 7.4 4.5 4.9 4.9
* GLA=Gross lettable area
The Fund's industrial vacancies at 0.7% (June 2012: 3.7%) is better than the sector average and is indicative of the quality of the portfolio. The Fund continues to focus on retention strategy and partnering with its tenants.
Retail vacancies (11.9%) increased since June 2012 (11.5%) predominantly due to strategic areas held for expansion in respect of existing and prospective tenants and large box tenant failures. With the support of Broll good progress has already been made post 30 June 2013 in securing tenants for vacancies of 2.5%.
The commercial vacancy (including commercial in retail) as at June 2013 was 19.9% marginally up from December 2012 (December 2012: 19.2%) but substantially up from June 2012 (June 2012: 14.5%). The commercial vacancy, excluding C grade offices held for sale, will reduce to 14.1%.
The lease expiry profile and vacancies (by GLA) are set out below:
Property Vacant (%) Expiring (%)
type Monthly 2013 2014 2015 2016 Thereafter
Industrial 0.7 3.5 10.4 13.4 25.0 7.1 39.9
Retail 11.9 7.9 8.3 16.5 18.0 13.7 23.7
Commercial 19.9 7.8 9.1 16.6 14.3 5.2 27.1
Total 6.0 5.3 9.6 14.7 21.8 9.2 33.4
Good progress has been made in reducing the monthly expiries from 9.2% in December 2012 to 5.3% in June 2013, through longer lease negotiation or re-tenanting, while the focus on retention has seen the expiries for 2013 reduce from 18.5% to 9.6% since December 2012.
TENANT RETENTION AND RENTAL REVERSION
The table below reflects the Fund retention ratio and rental reversion per sector for a rolling 12 month period ending June 2013:
Property type Expiries m2 Retention m2 Retention (%) Rental
reversion (%)
Industrial 136,965 89,178 65.1 5.3
Retail 69,688 60,883 87.4 0.9
Commercial 17,545 9,739 55.5 (1.0)
Total 224,198 159,800 71.3 2.4
The reduction in overall tenant retentions were impacted by the expiry and re-letting of the 30 000m2 distribution centre referred to previously, representing a larger proportion of the Industrial expiries in the last 12 months. Both the retail and commercial retentions have improved over the same period.
BORROWINGS
The debt profile is detailed below as at 30 June 2013:
Type Maturity date Value Interest Rate
(Rm) (%)
Fixed 13.08.2018 270 7.45
Fixed 13.08.2018 30 7.45
Variable 31.12.2014 300 6.80
Fixed 11.09.2014 400 7.41
Fixed 29.04.2015 200 8.23
Variable 25.07.2016 16 7.15
Total 1,216 7.40
Gearing remained low with debt amounting to 14.5% of the total portfolio (30 June 2012: 17.8%). The Fund entered into new swap arrangements, effective January 2013, hedging R720m (59.2%) of the Fund's effective borrowings.
STRATEGY AND PROSPECTS
The Fund has made good progress with the execution of its four pillar strategy presented at the beginning of the year.
In respect of the first pillar relating to the Fund's investment strategy, the initial focus has been to make acquisitions to further enhance its quality industrial portfolio, acquire premium grade offices in prime locations, whilst divesting from largely vacant C grade offices in secondary nodes and retail properties not of a quality compatible with the long term strategy. The purchase of four industrial buildings for a total consideration of R215m in two separate transactions has been contracted whilst the Fund is in advanced negotiations for the acquisition of a further industrial property for R65m. The purchase of a premium grade office tower in Sandton for R360m has been contracted in addition to the office building situated in Durban already acquired. The sale of three largely vacant C grade office buildings and one of its underperforming retail centres, represents a divestment of R117,2m. The Fund is actively pursuing a number of acquisitions with a view to improving the growth of its retail portfolio. An important component of the Fund's investment strategy is to exploit redevelopment opportunities and in this regard obstacles to the redevelopment of two of its prime retail properties, East Rand Galleria and Umlazi Mega City, have been unlocked and planning on these projects has commenced.
Regarding the second pillar, being the procurement of sector best property management services to secure optimal performance of the Fund's portfolio, Broll Property Group was appointed effective 1 July 2013 and has already made good progress particularly in respect of retail vacancies. Property management expenses are expected to reduce by circa 20% from 1 July. The Fund has entered into a memorandum of understanding with Retail Africa who in return for the opportunity to co-invest 25% in the redevelopment of certain of the Fund's retail properties requiring renewal, will provide their expertise and experience in retail property redevelopment. This is done at a level which will ensure the Fund's NAV is not diluted. The partnership incentivises Retail Africa to introduce new investment.
With respect to the third pillar, establishing an optimal and cost efficient capital structure, the Fund has achieved good pricing on expiring borrowing facilities to ensure that the weighted average cost of debt supports the growth in core income. The Fund achieved its inaugural long term rating of A1-za by Global Credit Rating and will enter the debt capital markets with its inaugural issuance this year to coincide with its funding requirements. To mitigate interest rate volatility and the Fund's progress with acquisitions the Fund secured swaps on 24 July 2013 and renegotiated its long term debt on 14 August 2013, bringing the hedging of its long term debt to 91.8% and its weighted average cost of debt to 7.86%.
In the execution of the final pillar, being the alignment of investor and management interests, the Fund is still in discussions with Old Mutual Property. The aforementioned transaction would enable the conversion to a REIT company and the Fund's management is proactively engaging the Financial Services Board, National Treasury and SARS with other REIT Collective Investment Schemes in Property on formulating the process for this conversion.
The Board is confident that Management are in a position to continue to deliver the execution of the strategy such that a similar level of distribution growth is achievable for the full financial year.
As at As at As at
CONDENSED GROUP STATEMENT 30.06.2013 30.06.2012 31.12.2012
OF FINANCIAL POSITION (R000) Unaudited Unaudited Audited
Assets
Non-current assets 8,328,842 7,645,819 7,990,017
Investment property 8,055,905 7,418,385 7,733,791
- At valuation 8,103,125 6,757,925 7,903,575
- Straight line rental adjustment (221,020) (214,440) (233,084)
- Properties under development 173,800 874,900 63,300
Letting commission and tenant
installation 55,897 26,404 53,521
Interest rate swap derivative 31,668 10,831 2,854
Rental receivable - straight line
adjustment 185,372 190,199 199,851
Current assets 544,268 1,209,116 754,215
Properties held for disposal 112,040 370,400 182,900
Letting commission and tenant
installation 637 - 835
Trade receivables 23,330 18,042 20,186
Other receivables and accrued interest 88,642 130,626 108,956
Rental receivable - straight line
adjustment 35,648 24,240 33,233
Capital gains taxation - 824 824
Cash resources and short term
investments 283,971 664,984 407,281
Total assets 8,873,110 8,854,935 8,744,232
Unitholders' funds and liabilities
Unitholders' funds 7,168,527 6,777,333 6,973,355
Non-current liabilities 1,216,014 1,062,767 767,719
Interest-bearing borrowings 1,216,014 920,976 620,975
Interest rate swap derivative - 29,227 -
Deferred taxation - 112,564 146,744
Current liabilities 488,569 1,014,835 1,003,158
Trade and other payables 161,951 172,258 170,283
Interest-bearing borrowings - 500,000 520,000
Capital gains taxation 31 56 56
Unclaimed distributions 1,173 879 1,034
Distributions payable 322,315 311,133 305,475
Interest rate swap derivative 3,099 30,509 6,310
Total unitholders' funds and
liabilities 8,873,110 8,854,935 8,744,232
NAV cpu 362 330 34
6 months 6 months Year
ended ended end
CONDENSED GROUP STATEMENT 30.06.2013 30.06.2012 31.12.2012
OF COMPREHENSIVE INCOME (R000) Unaudited Unaudited Audited
Revenue 570,158 604,666 1,227,838
Income 580,677 618,183 1,259,787
Rent 424,333 448,382 893,877
Straight line rental adjustment (12,655) (4,335) 8,177
Recovery of property expenses 158,480 160,619 325,784
Interest income from associate company - 1,402 1,402
Interest income 10,519 12,115 30,547
Expenses (279,932) (312,878) (636,496)
Accounting and secretarial fees (3,041) (2,943) (5,893)
Audit fees (787) (28) (1,661)
Administrative fees (7,818) (2,095) (11,594)
Interest expense (43,614) (73,704) (139,202)
Property expenses (206,144) (216,693) (442,587)
Service fees (18,528) (17,415) (35,559)
Operating income 300,745 305,305 623,291
Revaluation of interest rate swap 32,025 (16,360) (30,141)
Debt restructure costs (10,504) (19,002) (32,739)
Capital loss on disposal of
investment properties (4,995) (13,422) (20,075)
Revaluation of investment properties 271,891 (46,379) 245,611
- Revaluations 259,236 (50,714) 253,788
- Straight line rental adjustment 12,655 4,335 (8,177)
Revaluation of investment property
under development (14,354) 11,905 625
Income before taxation 574,808 222,047 786,572
Taxation 146,847 (15,762) (49,939)
Current capital gains and normal
income taxation 103 1,439 1,441
Deferred taxation on property
transactions 146,744 (17,201) (51,380)
Deferred taxation on straight line
valuation adjustment (21,815) (445) 846
Deferred taxation on straight line
rental adjustment 21,815 445 (846)
Net profit attributable to unitholders 721,655 206,285 736,633
Other comprehensive income
Amortisation of debt restructure 10,515 13,737 27,473
Total comprehensive income attributable
to unitholders 732,170 220,022 764,106
CONDENSED GROUP STATEMENT OF 6 months to 6 months to 12 months to
CHANGES IN UNITHOLDERS 30.06.2013 30.06.2012 31.12.2012
FUNDS (R000) Unaudited Unaudited Audited
Unitholders' funds at the beginning
of the period 6,973,355 6,967,767 6,967,767
Total comprehensive income for the
period 732,170 220,022 764,106
Net profit for the period 721,655 206,285 736,633
Amortisation of debt restructure 10,515 13,737 27,473
Repurchase of units (222,986) (100,000) (142,489)
Unit repurchase cost (509) (118) (216)
Lapsed distribution on units
repurchased 8,812 795 795
Distribution attributable to
unitholders (322,315) (311,133) (616,608)
Unitholders' funds at the end of
the period 7,168,527 6,777,333 6,973,355
6 months to 6 months to 12 months to
CONDENSED GROUP STATEMENT 30.06.2013 30.06.2012 31.12.2012
OF CASH FLOWS (R000) Unaudited Unaudited Audited
Operating profit before changes in
working capital 354,722 371,234 744,552
Changes in working capital 11,504 24,494 31,663
Cash generated from operations 366,226 395,728 776,215
Changes in operating activities (337,668) (363,342) (721,539)
Net cash flows from operating activities 28,558 32,386 54,676
Net cash flows from investing activities (12,236) 665,542 708,137
Net cash flows from financing
activities (139,632) (406,595) (729,183)
Net (decrease)/increase in cash
resources and short term investments (123,310) 291,333 33,630
Cash resources and short term
investments at beginning of period 407,281 373,651 373,651
Cash resources and short term
investments at end of period 283,971 664,984 407,281
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
The condensed financial information has been prepared in accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards (IFRS), SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, the requirements of the Collective Investment Schemes Control Act and the information as required by IAS 34: Interim Financial Reporting. The report has been prepared using accounting policies that comply with IFRS which are consistent with those applied in the financial statements for the year ended 31 December 2012. The results and prospects have not been audited or reviewed by the Group's auditors, Deloitte & Touche.
1. Reconciliation of headline earnings to distributable earnings attributable to unitholders
6 months to 6 months to 12 months to
30.06.2013 30.06.2012 31.12.2012
Unaudited Unaudited Audited
R 000 CPU R 000 CPU R 000 CPU
Net profit for the period 721,655 36.24* 206,285 9.99* 736,633 35.80*
Adjustments for:
Capital loss on disposal
of investment properties 4,995 13,422 20,075
Revaluation of
investment properties (271,891) 46,379 (245,611)
Revaluation of
investment property
under development 14,354 (11,905) (625)
Taxation on adjustments (125,032) 16,207 49,093
Headline earnings 344,081 17.28* 270,388 13.09* 559,565 27.20*
Straight line rental
adjustment 12,655 4,335 (8,177)
Taxation on straight line
rental adjustment (21,815) (445) 846
Debt restructure costs 10,504 19,002 32,739
Other 103 698 699
Lapsed distribution on
units repurchased 8,812 795 795
Revaluation of interest
rate swap (32,025) 16,360 30,141
Distributable earnings
attributable to
unitholders 322,315 16.28 311,133 15.17 616,608 30.15
Interim 322,315 16.28 311,133 15.17 311,133 15.17
Final - - - - 305,475 14.98
* calculated on weighted units in issue
2. Primary operational segments (R000)
Business segment Industrial Retail Commercial Group
Extract from statement of
comprehensive income
Revenue 225,798 297,925 46,435 570,158
Rental income (excluding
straight line rental adjustment) 204,219 181,087 39,027 424,333
Net property expenses (20,576) (19,445) (7,643) (47,664)
Property expenses (48,192) (140,496) (17,456) (206,144)
Recovery of property expenses 27,616 121,051 9,813 158,480
Net property income 183,643 161,642 31,384 376,669
Straight line rental adjustment (6,037) (4,213) (2,405) (12,655)
Net interest expense - - - (33,095)
Debt restructure costs - - - (10,504)
Fund expenses - - - (30,174)
Deferred taxation on straight
line rental adjustment 1,123 20,692 - 21,815
Revaluation of interest rate swap - - - 32,025
Headline earnings 178,729 178,121 28,979 344,081
Other information
Properties 3,607,390 3,815,707 743,130 8,166,227
At valuation 3,665,500 3,750,925 686,700 8,103,125
Classified as held for
disposal - 35,300 76,740 112,040
Property under development 65,300 108,500 - 173,800
Straight line rental
adjustment (123,410) (79,018) (20,310) (222,738)
Revaluation of investment
properties excluding straight
line adjustment, net of
taxation 101,763 286,102 3,761 391,626
Segment growth rates Industrial Retail Commercial Group
% % % %
Rental income (excluding
straight line rental adjustment) 7.3 (15.3) (11.7) (5.4)
Property expenses 19.3 (11.8) 2.5 (4.9)
Recovery of property expenses 8.2 (4.0) 9.4 (1.3)
Net property income 4.7 (10.6) (13.2) (4.0)
3. Unit repurchases
The Board approved the implementation of a unit repurchase programme for which approval was given by the unitholders at the annual general meeting in 2012. In terms of the programme, a portion of the proceeds from the sale of the properties can be used to repurchase units in the open market which would then be cancelled. In January to February the programme was concluded by the repurchase of 58,896,063 units at an average price of 378.61c (2012: 42,879,535 units at an average price of 332.30c).
4. Deferred taxation
During the reporting period, the JSE Limited approved the Fund's application for the Real Estate Investment Trust (REIT) status. SA Corporate will qualify as a REIT with effect from the commencement of its next financial year, being 1 January 2014. In determining the aggregate capital gain or capital loss of a REIT or a controlled property company for purposes of the Eighth Schedule, of the Income Tax Act 1958, as amended, any capital gain or capital loss determined in respect of the disposal of immovable property; a share in a REIT; or a share in a controlled property company, must be disregarded. This resulted in a reversal of the Group's deferred taxation liability of R146.74m.
DISTRIBUTION DECLARATION AND IMPORTANT DATES
Notice is hereby given of the declaration of distribution no. 37 in respect of the income distribution period 1 January 2013 to 30 June 2013. The distribution amounts to 16.28 cpu. The source of the distribution comprises net income from property rentals, income earned from the Fund's listed property investment and interest earned on cash investments. Please refer to the statement of comprehensive income for further details. The distribution is not regarded as a dividend and therefore no dividend withholding taxation is payable on the distribution amount.
Last date to trade cum distribution Thursday, 19 September 2013
Units will trade ex-distribution Friday, 20 September 2013
Record date to participate in the distribution Friday, 27 September 2013
Payment of distribution Monday, 30 September 2013
Unit certificates may not be dematerialised or re-materialised between Friday, 20 September and Friday, 27 September 2013 both days inclusive.
SA Corporate Real Estate Fund Managers Limited
Registered office
5th Floor
Mutual Park
Jan Smuts Drive
Pinelands
7405
PO Box 333
Mutual Park
7451
Tel: (021) 530-4500
Registered auditors
Deloitte & Touche
1st Floor
The Square
Cape Quarter
27 Somerset Road
Cape Town
8005
Transfer secretaries
Computershare Investor Services
(Pty) Ltd
Ground Floor
70 Marshall Street
Johannesburg
2001
PO Box 61051
Marshalltown
2107
Sponsor
Nedbank Capital
A division of Nedbank Limited
135 Rivonia Road
Sandton
2196
Managed by Old Mutual Property
A licenced financial services provider
Directors: J Molobela (Chairman appointed 3 May 2013), TR Mackey (Managing)*, AM Basson (Finance)*, RJ Biesman-Simons, GP Dingaan, KJ Forbes, P Levett, SH Mia, R Morar, ES Seedat, GJ Van Zyl (resigned 3 June 2013)
* Executive
This report has been prepared under the supervision of AM Basson, CA(SA).
OLD MUTUAL PROPERTY PROPRIETARY LIMITED
SECRETARIES
26 August 2013
Date: 26/08/2013 11:06:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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