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ROCKCASTLE GLOBAL REAL EST CO LTD - Abridged unaudited financial statements for the quarter ended 30 September 2013

Release Date: 05/11/2013 13:14
Code(s): ROC     PDF:  
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Abridged unaudited financial statements for the quarter ended 30 September 2013

ROCKCASTLE GLOBAL REAL ESTATE COMPANY LIMITED
(Incorporated in the Republic of Mauritius)
(Reg no 108869 C1/GBL)
ISIN: MU0364N00003
Primary listing SEM
SEM code: Rock.N0000
Secondary listing JSE
JSE shares code: ROC
(“Rockcastle” or “the Company”)

ABRIDGED UNAUDITED FINANCIAL STATEMENTS for the quarter ended 30 September 2013

DIRECTORS’ COMMENTARY

STRUCTURE OF ROCKCASTLE
Rockcastle was established on 30 March 2012 in Mauritius as a Category One
Global Business License Company with the primary objective of investing
globally in listed real estate assets and opportunistically in direct
property assets. Rockcastle is listed on both the Stock Exchange of
Mauritius Limited (“SEM”) and the Alternative Exchange of the JSE Limited.

REVIEW
During the 3 month period since the release of the first audited annual
financial statements for the period ended 30 June 2013, the number of
investors increased and the trading liquidity of the Company’s shares
improved. Rockcastle continues to invest in global listed real estate
companies and is in the process of finalising various agreements for the
acquisition of direct retail property assets in Africa (excluding South
Africa). Further announcements will be made as and when appropriate.
Rockcastle will continue to pursue direct property opportunities and will
seek to raise additional capital accordingly. The global macro-economic
environment continues to be volatile, providing Rockcastle with various
investment opportunities.

As at the end of the quarter, Rockcastle’s loan to value ratio (total
interest-bearing borrowings divided by total assets) was 40,6%. The
Company utilises short selling of government bonds as well as interest
rate swaps to hedge out interest rate risk. No currency hedging strategies
have been implemented.

No dividend has been declared in respect of the quarter ended 30 September
2013. The Company will continue to consider and declare dividends on a
semi-annual basis.

OUTLOOK
Rockcastle’s   portfolio  is   performing  in   line  with  management’s
expectations. Accordingly, the Company’s hybrid strategy of investing in
global listed real estate equities and direct property should allow
Rockcastle to deliver continued growth in distributable earnings per
share.
Annualised distributions are forecast to increase by approximately 5% for
the 2014 financial year. The aforegoing forecast statement and the
forecasts underlying such statement are the responsibility of the board
and have not been reviewed or reported on by the Company’s external
auditors. The forecast is based on the assumptions that a stable macro-
economic environment will prevail and that no major currency fluctuation
or failures of listed REITs will occur.

By order of the board

Intercontinental Trust Limited
Company secretary

5 November 2013


STATEMENT OF FINANCIAL POSITION
                                          Unaudited      Audited       Restated
                                              as at         as at         as at
                                        30 Sep 2013   30 Jun 2013   30 Sep 2012
                                            USD’000       USD’000       USD’000
ASSETS
Non-current assets                          669 887       693 644       138 133
Listed security investments                 665 477       689 257       138 133
Rockcastle management incentive loans         4 410         4 387             –

Current assets                                  173         3 321             4
Trade and other receivables                      82         3 126             4
Cash and cash equivalents                        91           195             –

Total assets                                670 060       696 965       138 137


EQUITY AND LIABILITIES
Total equity attributable to
  equity holders                            396 690       401 361       122 250
Stated capital                              409 771       409 771       120 970
Retained (loss)/earnings                   (13 081)       (8 410)         1 280

Total liabilities                           273 370       295 604       15 887

Non-current liabilities                     179 541        66 970       15 733
Interest-bearing borrowings                 179 541        66 970       15 733

Current liabilities                          93 829       228 634           154
Trade and other payables                      1 247            51           145
Interest-bearing borrowings                  92 165       228 385             –
Income tax payable                              417           198             9

Total equity and liabilities                670 060       696 965       138 137

Total number of shares in issue         350 000 000   350 000 000   118 000 000
Net asset value per share (USD)                1,13          1,15          1,04


STATEMENT OF COMPREHENSIVE INCOME
                                                     Unaudited      Restated
                                                       for the       for the
                                                       quarter       quarter
                                                         ended         ended
                                                   30 Sep 2013   30 Sep 2012
                                                       USD’000       USD’000
Distributions received from listed
  security investments                                   6 164          930
Fair value loss on listed security investments        (13 100)        (546)
Foreign exchange gain                                   4 380         1 394
Operating expenses                                       (196)         (61)
Listing costs                                                –        (314)

(Loss)/profit before net finance costs                 (2 752)        1 403

Net finance costs                                      (1 700)         (43)
Finance costs                                          (2 990)         (43)
  Interest on borrowings                               (2 373)         (43)
  Unrealised fair value loss on interest rate
    derivatives                                          (459)            –
  Unrealised fair value loss on bond shorts              (158)            –

Finance income                                           1 290            –
  Interest received                                         22            –
  Unrealised fair value gain on interest rate
    derivatives                                             76            –
  Unrealised fair value gain on bond shorts              1 192            –

(Loss)/profit before income tax expense                (4 452)        1 360
Income tax expense                                       (219)          (9)
(Loss)/profit for the period attributable to
  equity holders                                       (4 671)        1 351

Total comprehensive (loss)/income for the period       (4 671)        1 351

Basic (loss)/earnings per share and headline
  (loss)/earnings per share (USD cents)                 (1,33)         2,49

Basic (loss)/earnings per share and headline (loss)/earnings per share are
based on the weighted average of 350 000 000 shares in issue for the three
months ended 30 September 2013 (three months ended 30 September 2012: 54
315 815 shares).
There are no reconciling items between basic (loss)/earnings and headline
(loss)/earnings.
Rockcastle has no dilutionary instruments in issue.


STATEMENT OF CHANGES IN EQUITY
                                                     Retained
                                           Stated    earnings/
                                          Capital       (loss)          Total
                                          USD’000     USD’000         USD’000
Restated for the quarter ended
  30 September 2012
Balance as at 30 June 2012                  6 201        (71)           6 130
Total comprehensive income for
  the period                                            1 351            1 351
Issue of shares                           114 769                      114 769
Balance at 30 September 2012              120 970       1 280          122 250

Unaudited for the quarter ended
  30 September 2013
Balance as at 30 June 2013                409 771     (8 410)          401 361
Total comprehensive loss for the period               (4 671)          (4 671)
Balance at 30 September 2013              409 771    (13 081)          396 690



STATEMENT OF CASH FLOWS
                                                   Unaudited        Restated
                                                     for the         for the
                                              quarter ended    quarter ended
                                                 30 Sep 2013     30 Sep 2012
                                                     USD’000         USD’000
Cash inflow from operating activities                  7 475             438
Cash inflow/(outflow) from investing activities       16 072        (137 141)
Cash (outflow)/inflow from financing activities      (23 651)        136 703
Decrease in cash and cash equivalents                   (104)              –
Cash and cash equivalents at beginning of period         195               –
Cash and cash equivalents at end of period                91               –

Cash and cash equivalents consist of:
Current accounts                                          91               –


SEGMENTAL REPORTING
                                                       Unaudited             Restated
                                                         for the                as at
                                                   quarter ended        quarter ended
                                                     30 Sep 2013          30 Sep 2012
                                                         USD’000             USD’000
(Loss)/profit before income tax expense
Australia                                                    623                  66
Canada                                                    (4 017)                428
Europe                                                      4 318                108
UK                                                          1 815                  9
Hong Kong                                                     110                  7
Singapore                                                     809                 33
USA                                                      (12 316)                155
Corporate                                                   4 206                554
                                                           (4 452)             1 360


                                     Unaudited            Audited        Restated
                                         as at              as at           as at
                                   30 Sep 2013        30 Jun 2013     30 Sep 2012
                                       USD’000            USD’000         USD’000
Total assets
Australia                                  54   406        52   823        16 767
Canada                                     92   428        90   125        12 978
Europe                                    123   658       135   869        31 834
UK                                         61   028        58   106         9 780
Hong Kong                                  37   758        33   867         3 505
Singapore                                  73   553        72   900        19 902
USA                                       222   815       248   888        43 371
Corporate                                   4   414         4   387             –
                                          670   060       696   965       138 137

Notes

The Company is required to publish financial results for the quarter ended
30 September 2013 in terms of the Listing Rule 12.19 of the SEM.
Accordingly, this announcement presents the financial results of the
Company in respect of the period from 1 July 2013 to 30 September 2013 as
well as the restated comparative results from the prior period.

The comparative results for the quarter ended 30 September 2012 have been
restated from a disclosure perspective to ensure the comparability of
information for the users of the financial statements. The disclosure of
the financial results for the quarter ended 30 September 2012 has
accordingly been restated to ensure consistency between this information
and the current quarter’s information using the accounting policies and
disclosures currently applied. The accounting policies which have been
applied are consistent with those used in the preparation of the audited
financial statements for the 15 month period ended 30 June 2013.

During the course of the quarter, shareholders approved a cash
distribution of USD 4.00 cents per share by way of a reduction of stated
capital. The distribution is due to be approved and paid in the following
quarter.

The abridged unaudited financial statements (“financial statements”) for
the quarter ended 30 September 2013 have been prepared in accordance with
the measurement and recognition requirements of IFRS, the requirements of
IAS 34: Interim Financial Reporting, the JSE Listings Requirements, the
SEM Listing Rules and the Securities Act of Mauritius 2005.

The financial statements have not been reviewed or reported on by the
Company’s external auditors.

These financial statements were approved by the board on 5 November 2013.

Copies of the financial statements and the Statement of direct and
indirect interests of each officer of the Company, pursuant to rule
8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers)
Rules of Mauritius 2007, are available free of charge, upon request at the
Registered Office of the Company at Level 3, Alexander House, 35
Cybercity, Ebene, Mauritius.

Contact person: Mr Kesaven Moothoosamy
This communiqué is issued pursuant to SEM Listing Rules 12.20 and section
88 of the Securities Act of Mauritius 2005. The board accepts full
responsibility for the accuracy of the information contained in these
financial statements. The directors are not aware of any additional
matters or circumstances arising subsequent to the period ended 30
September 2013 that require any additional disclosure or adjustment to the
financial statements.


Directors: Mark Olivier (chairman); Craig Hallowes*; Stephen Delport*;
Andries de Lange; Rory Kirk; Alexandru Morar; Yan Ng; Paul Pretorius*
(*executive director)

Company secretary:    Intercontinental Trust Limited

Registered address:    Level 3, Alexander House, 35 Cybercity, Ebene,
Mauritius

Transfer secretary in South Africa:    Link Market Services South Africa
Proprietary Limited

JSE sponsor:   Java Capital

SEM sponsor:   Capital Market Brokers Limited

www.rockcastleglobalre.mu

Date: 05/11/2013 01:14:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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