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Unaudited Interim Results for the six months ended 31 December 2013, interest payment and trading statement
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")
Unaudited Interim Results for the six months ended 31 December 2013,
interest payment declaration and trading statement
Comments
1. Introduction
Hospitality is the only Specialised Real Estate Investment Trust ("REIT") listed on
the JSE that offers investors a unique investment vehicle in the hospitality sector
through the ownership of a portfolio of hotel and leisure properties.
The Fund continued to benefit from the improving fundamentals in the South
African hospitality industry over the past six months. Supported by the quality of
its hotel portfolio, it delivered strong year-on-year growth in distributions with the
Sandton and Cape Town properties in particular performing well. Industry-wide
occupancies are reaching levels last seen in 2008 and revenue per available room
("RevPar") was boosted in December 2013 as many foreign dignitaries travelled
to South Africa to pay tribute to late President Nelson Mandela.
Hospitality once again exceeded the forecast set out in its 2013 Integrated Report
("Forecast"), for the period ended 31 December 2013 ("the period").
Distributable earnings per combined linked unit increased by 17,7% to 89,08 cents
compared to 75,70 cents in the previous financial year, these also exceeded the Forecast of
83,19 cents by 7,1%. The A-linked unit distribution grew by 5,0% to 69,83 cents,
in line with the Fund's distribution structure and the Forecast. Distribution on the
B-linked unit showed an increase of 109,5% to 19,25 cents compared to 9,19 cents
in the previous period and exceeded the Forecast by 44,10%.
2. Trading environment
According to STR Global, the hotel industry reported that year-on-year occupancy
increased by 2,7% to 63,5%, average room rates ("ARR") were up 11,7% to
R992 and that industry-wide RevPar increased 14,7% for the six months to
December 2013. The Fund reflected RevPar growth of 18,4% for that portion of its
portfolio which is subject to variable rental income (i.e. dependent on operational
earnings), exceeding the industry RevPar growth. It achieved a 4,5% increase in occupancy
to 62,5%, while ARR rose 13,4% to R1 121.
The strength of the industry's recovery is being driven by improving occupancies
and higher room rates as demand for hotel accommodation continues to rise,
especially in major metropolitan areas where the supply of new hotel rooms into
the market has been slow. In particular, the three months from September to
December 2013 saw room rates exceeding levels last achieved before the global
financial crisis. A significant recent development for the domestic hospitality industry
is the proposed acquisition of Protea Hospitality Holdings' brands and hotels business by
Marriott International.
3. Results
Rental income for the period exceeded the Forecast by R23,8 million (12,6%), and
showed growth of R38,6 million (22,2%) from the comparable period in the prior
year. The increase is mainly due to the inclusion of the Radisson Blu Gautrain Hotel
("RBGH") for the period and rental income growth of 13,1% that was achieved by
the portfolio's remaining 22 properties that are subject to variable rental. However,
the Fund's overall rental income growth was marginally dampened by the impact of
the average rental increase of 2,3% on the fixed lease portion of the portfolio, which
contributes 30% of total rental income.
Fund expenses increased R5,2 million (35,6%) and were also R4,9 million higher
than Forecast.The increase was primarily due to a bad debt provision of R4,2 million
raised as a result of a tenant default. However, with effect from 1 December 2013,
this tenant vacated the property and a replacement tenant was secured.
Net finance costs rose R4,7 million (7,1%), due largely to increased debt levels
associated with the corporate bond issued to finance the RBGH acquisition in May
2013.
The following table reflects the operating financial results for the six months ended
31 December 2013 compared to the Forecast and the previous financial year.
2013 2012
Actual Forecast Variance Actual Variance
R'000 R'000 R'000 % R'000 R'000 %
Contractual
rental 212 579 188 743 23 836 12,6 173 957 38 622 22,2
Fund
expenses (19 790) (14 935) (4 855) (32,5) (14 591) (5 199) (35,6)
Profit on
properties
held for sale - - - 0.0 974 (974) (100,0)
Income from
associates 83 - 83 100,0 - 83 100,0
Taxation (46) - (46) (100,0) - (46) (100,0)
Net finance
costs (70 565) (70 019) (546) (0,8) (65 899) (4 666) (7,1)
Profit before
debenture
interest 122 261 103 789 18 472 17,8 94 441 27 820 29,5
Distribution (122 261) (103 789) (18 472) (17,8) (94 441) (27 820) (29,5)
Distribution
- A-linked
unit (95 843) (87 121) (8 722) (10,0) (82 981) (12 862) (15,5)
2013 2012
Actual Forecast Variance Actual Variance
R'000 R'000 R'000 % R'000 R'000 %
Distribution
- B-linked
unit (26 418) (16 668) (9 750) (58,5) (11 460) (14 958) (130,5)
Distribution
- A-linked
unit (cents) 69,83 69,83 - 0,0 66,51 3,32 5,0
Distribution
- B-linked
unit (cents) 19,25 13,36 5,89 44,1 9,19 10,06 109,5
Combined
distribution -
unit (cents) 89,08 83,19 5,89 7,1 75,70 13,38 17,7
4. Property portfolio
The Fund's portfolio comprises interests in 27 hotel and resort properties in South
Africa. As at 31 December 2013, the carrying amount of the portfolio was R4,6 billion.
The net asset value per linked unit as at 31 December 2013 was R10,97, an increase
of 9,6% from December 2012 due primarily to an increase in the valuation of the
standing portfolio. The weighted average lease expiry period is 6,9 years.
African Pride Hotels (owned by Protea Hotels) took over as hotel manager at
Mount Grace in December 2013, positioning the property to regain market share
by leveraging off Protea Hotels' extensive sales and marketing infrastructure. The
Fund also concluded a new lease agreement with a subsidiary of African Hotels and
Adventures ("AHA") (a division of Tourvest) for the Kopanong Hotel & Conference
Centre on 1 December 2013. Through the extensive sales and marketing network
that is available to AHA the performance of this property should improve.
5. Funding
The Group's debt facilities as at 31 December 2013 amounted to R1,73 billion.Total
funds outstanding on these facilities were R1,59 billion resulting in a loan to value
("LTV") ratio (total interest-bearing liabilities/investment property plus non-current
assets held for sale) of 34,6%. (2012: 34,1%). The interest cover ratio ("ICR") is
2,73 times.
The average cost of borrowings for the six months under review was 9,02% (2012:
9,84%). Of the borrowings, 62% was subject to fixed interest rates through interest
rate swap structures.
Debt facilities
Facility Expiry Margin
Nedbank R000's
Loan 1 176 300 July 2015 3-month JIBAR plus 2,9%
Loan 2 400 000 Oct 2019 3-month JIBAR plus 2,8%
Loan 3 30 250 Oct 2018 3-month JIBAR plus 2,85%
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 200 000 June 2014 3-month JIBAR plus 2,05%
Facility B 150 000 June 2015 3-month JIBAR plus 2,47%
Facility C 100 000 June 2016 3-month JIBAR plus 2,84%
Facility D 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 the end of the period:
Dec 13 Dec 12 Nominal rate Maturity date
Absa - Swap 1 - 346,67 7,42% June 13
Absa - Swap 2 346,67 346,67 7,75% June 14
Absa - Swap 3 346,67 346,67 7,98% June 15
Nedbank - Swap 1 150,00 - 6,0% - 9,09% Sep 16
Nedbank - Swap 2 150,00 - 6,40% Oct 16
993,34 1 040,01
The Fund continually plans and evaluates the optimal methods of funding for new
acquisitions and replacing debt, including new unit issues, replacement of bank
funding and the Group's corporate bond programme. When raising new debt the
Group endeavours to spread the maturity to reduce the need to replace large
tranches in a single year.
The debt expiry profile has been restructured to provide an even expiry spread with no
concentrated exposures.
Rand Merchant Bank ("RMB"), acting as arranger, successfully facilitated a
R500 million secured note issue on 17 February 2014. The issue comprised
R300 million of floating rate notes at 3-month JIBAR plus 200bps and R200 million
of fixed rate notes at an interest rate of 9,89% for a three-year period. Nedbank also
provided a new term loan of R50 million at 3-month JIBAR + 238bps.The proceeds
were utilised to repay all the facilities previously provided by Absa amounting to
R550 million. The decision was taken due to the restrictive conditions imposed by Absa
in terms of the loan agreement An early repayment penalty of R4,9 million was paid to Absa
which will be incurred in the second half of the current financial year.The two Absa swaps
were also novated to RMB on 10 February 2014. The Fund thanks Nedbank, RMB,
Bowman Gilfillan and investors in the note programme for their continued support
and assistance in restructuring and enhancing the Fund's debt facilities.
6. Acquisitions and disposals
The Fund continually evaluates property acquisitions in line with its strategy to
acquire large, well-located properties with strong brands in major metropolitan
areas. Several opportunities across South Africa are currently under consideration.
The Fund has identified certain properties amounting to R326,7 million which
do not meet its long-term investment criteria and continues to market these for
sale. These properties remain profitable and Hospitality is not under pressure to
compromise on-pricing.
7. Development and capital projects
With virtually all fixed and variable lease properties having been refurbished during
the last six years, capex has been contained to R40,0 million in the period under review.
In the short term, the addition of a new outdoor swimming pool at Westin Cape Town, the
upgrade of the public areas at Radisson Waterfront and the expansion of the Protea Edward
with 24 new bedrooms are planned.
The application process for the development rights on the Phase 2 land at Arabella
Hotel and Spa is still in progress, finalisation of the matter has been impacted by
delays at the local municipality. The Fund now anticipates a response from the
relevant authorities in the next six months. Should the development rights be
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.
8. Liquidity
During the six months under review, 25,9% of the A-linked units and 38,5% of the
B-linked units were traded on the JSE Limited.
9. Board of directors
Ms Zola Ntwasa was appointed as Independent Non-Executive Director on 8 July
2013.
10. Prospects and trading update
The fundamentals for the hospitality industry remain strong, especially in major cities
where business volumes continue to grow. Whilst occupancies, which initially drove
the recovery, continue to track higher, room rates are starting to reflect the strong
demand. The Rand's weakness since the beginning of 2014 has made South Africa more affordable
for international visitors, which could further boost demand in the domestic hospitality sector.
The scarcity and high cost of land in major nodes coupled with the limited availability
of capital is expected to limit the pace of new hotel developments. Currently
acquisition opportunities are providing higher relative returns than bringing new
developments on stream.
The high quality of the Fund's properties continues to provide a solid platform to
benefit from improved trading given the positive fundamentals in the hospitality
sector.
Hospitality's focus for the remainder of the financial year remains on further
rationalising its capital and funding structure, optimally growing room rates in order
to improve its profitability while being sensitive to the impact on trading volumes.
The Absa early repayment penalty of 4,9 million referred to above will have a negative effect on
distributions.
Distributions for the 12 months ending 30 June 2014 are expected to be in line with
the Forecast of 141,36 cents per A-linked unit. The annual B-linked unit distribution
is expected to be at least 32,61 cents which is 22,0% higher than the current
Forecast of 26,72 cents per linked unit. This forecast has not been reviewed by the
Fund's auditors.
As previously stated the Fund's underlying performance in the 2015 financial year 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. Based on current trading figures, this could
result in a reversion in rental at Birchwood of between 10% and 20% in the 2015
financial year. The impact of the dilution in rental will be influenced by the trading
volumes and rates achieved at Birchwood during the 2015 financial year. Hospitality
has commenced discussions with the tenant to focus on a smooth transition from
fixed to F&V lease and together with the hotel's management team will ensure that
earnings before interest, tax, depreciation and amortisation ("EBITDA") levels are
optimised to minimise any dilution in rental income. The Fund's asset management
team which has recently been expanded and strengthened, is planning to implement
new hotel operating and control systems at Birchwood prior to the conversion in
June 2014.
11. Payments of interim distribution
Unitholders will receive distribution payment number 16 for the six-month period
ended 31 December 2013 of 69,83 cents per A-linked unit and 19,25 cents per
B-linked unit.
In accordance with Hospitality's status as a REIT, linked unitholders are advised
that the distribution meets the requirements of a "qualifying distribution" for the
purposes of section 25BB of the Income Tax Act, No. 58 of 1962 ("Income Tax
Act").
Local tax residents
Qualifying distributions received by local tax residents must be included in the gross
income of such linked unitholders (as a non-exempt dividend in terms of section
10(1)(k)(aa) of the Income Tax Act), with the effect that the qualifying distribution is
taxable as income in the hands of the linked unitholder.These qualifying distributions
are, however, exempt from dividend withholding tax in the hands of South African
tax resident linked unitholders, provided that the South African resident linked
unitholders provided the following forms to their Central Securities Depository
Participant ("CSDP") or broker, as the case may be, in respect of uncertificated
linked units, or the company, in respect of certificated linked units:
(a) a declaration that the distribution is exempt from dividends tax; and
(b) a written undertaking to inform the CSDP, broker or the company, as the
case may be, should the circumstances affecting the exemption change or
the beneficial owner cease to be the beneficial owner, both in the form
prescribed by the Commissioner for the South African Revenue Service.
Linked unitholders are advised to contact their CSDP, broker or the company,
as the case may be, to arrange for the abovementioned documents to be
submitted prior to payment of the distribution, if such documents have not
already been submitted.
Non-residents
Qualifying distributions received by non-resident linked unitholders will not be
taxable as income and instead will be treated as ordinary dividends but which
are exempt in terms of the usual dividend exemptions per section 10(1)(k) of
the Income Tax Act. It should be noted that until 31 December 2013 qualifying
distributions received by non-residents were not subject to dividend withholding
tax. From 1 January 2014, any qualifying distribution received by a non-resident from
a REIT will be subject to dividend withholding tax at 15%, unless the rate is reduced
in terms of any applicable double taxation agreement ("DTA") between South
Africa and the country of residence of the linked unitholder. A reduced dividend
withholding tax rate in terms of the applicable DTA, may only be relied on if the
non-resident linked unitholder has provided the following forms to their CSDP or
broker, as the case may be, in respect of uncertificated linked units, or the company,
in respect of certificated linked units:
(a) a declaration that the dividend is subject to a reduced rate as a result of the
application of a DTA; and
(b) a written undertaking to inform their CSDP, broker or the company, as the
case may be, should the circumstances affecting the reduced rate change
or the beneficial owner cease to be the beneficial owner, both in the form
prescribed by the Commissioner for the South African Revenue Service. Non-
resident linked unitholders are advised to contact their CSDP, broker or the
company, as the case may be, to arrange for the abovementioned documents
to be submitted prior to payment of the distribution if such documents have
not already been submitted, if applicable.
Unitholders are requested to seek professional advise on the appropriate action
to take.
Last day to trade cum distribution Thursday, 13 March 2014
Linked units will trade ex-distribution Friday, 14 March 2014
Record date Thursday, 20 March 2014
Payment date Monday, 24 March 2014
Unitholders may not dematerialise or rematerialise their linked units between
Friday, 14 March 2014 and Thursday, 20 March 2014, both days inclusive.
By order of the Board
D G Bowden A S Rogers
(Chairman) (Chief Executive Officer)
25 February 2014
Directors: D G Bowden (Chairman)*+, A S Rogers (CEO), K H Abdul-
Karrim*+, R Asmal, L de Beer *+, S A Halliday *+, Z N Kubukeli *+,
G A Nelson*, Z Ntwasa *+, W C 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 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 IAS 34
(Interim Financial Reporting), the SAICA financial reporting guidelines as issued by
the Accounting Practices Committee and the requirements of the Companies Act of
South Africa, 2008. KPMG Inc, the independent auditor, has not reviewed the financial
statements. The accounting policies used are consistent with those used in the annual
financial statements for the year ended 30 June 2013 .
STATEMENTS OF COMPREHENSIVE INCOME
for the six months ended 31 December 2013
Unaudited Unaudited Audited
Dec 2013 Dec 2012 June 2013
R'000 R'000 R'000
Revenue 211 156 173 852 356 042
Rental income - contractual 212 579 173 957 356 337
- straight-line accrual (1 423) (105) (295)
Expenditure (19 790) (14 591) (29 878)
Operating expenses (19 790) (14 591) (29 878)
Operating profit 191 366 159 261 326 164
Transaction costs on business
combination - - (1 975)
Profit on properties held for sale - 974 948
Net finance cost (70 565) (65 899) (132 320)
Finance income 1 349 228 1 819
Finance costs (71 914) (66 127) (134 139)
Profit before debenture interest,
goodwill, fair value adjustments and
taxation 120 801 94 336 192 817
Recoupment of debenture interest - - 6 130
Debenture interest (122 261) (94 441) (200 184)
Loss before fair value adjustments,
goodwill and taxation (1 460) (105) (1 237)
Gain on bargain purchase - - 7 615
Fair value adjustments 7 592 2 309 199 356
Investment properties, before straight-
lining adjustment - - 218 441
Straight-line rental income accrual 1 423 105 295
Total fair value of investment properties 1 423 105 218 736
Goodwill impairment - - (41 400)
Interest-rate swaps 6 169 2 204 22 020
Profit before taxation 6 132 2 204 205 734
Debenture discount amortisation (3 757) (2 662) (5 635)
Equity accounted profit from associate
after tax 83 55 126
Taxation (46) - 35 572
Total profit/(loss) and comprehensive
income for the period 2 412 (403) 235 797
Reconciliation between earnings,
headline earnings and distributable
earnings
Total profit/(loss) and comprehensive
income for the period 2 412 (403) 235 797
Adjustments: Debenture interest 122 261 94 441 200 184
Profit/(loss) (linked units) 124 673 94 038 435 981
Adjustments:
Equity accounted profit from associate
after tax - (55) -
Gain on bargain purchase - - (7 615)
Goodwill impairment - - 41 400
Fair value - investment properties
revaluation, net of tax - - (255 172)
Fair value - straight-line rental income (1 423) (105) (295)
Headline earnings (linked units) 123 250 93 878 214 299
Fair value - interest rate swaps (6 169) (2 204) (22 020)
Transaction costs on business
combinations - - 1 975
Debenture discount amortisation 3 757 2 662 5 635
Straight-line rental income 1 423 105 295
Distributable earnings 122 261 94 441 200 184
Number of units/shares
A-linked unit 137 237 530 124 761 391 137 237 530
B-linked unit 137 237 530 124 761 391 137 237 530
Unaudited Unaudited Audited
Dec 2013 Dec 2012 June 2013
R'000 R'000 R'000
Weighted average number of
units/shares
A-linked unit 137 237 530 124 761 391 129 273 310
B-linked unit 137 237 530 124 761 391 129 273 310
Distribution per linked unit (cents)
A-linked unit 69,83 66,51 134,63
- Interim 69,83 66,51 66,51
- Final - - 68,12
B-linked unit 19,25 9,19 18,08
- Interim 19,25 9,19 9,19
- Final - - 8,89
89,08 75,70 152,71
Profit per linked unit (cents)
A-linked unit 45,42 37,69 168,63
B-linked unit 45,42 37,69 168,63
90,84 75,38 337,26
Headline earnings per linked unit
(cents)
A-linked unit 44,90 37,62 82,89
B-linked unit 44,90 37,62 82,89
89,80 75,24 165,78
Earnings and diluted earnings per
ordinary share (cents) 0,88 (0,16) 91,20
STATEMENTS OF FINANCIAL POSITION
as at 31 December 2013
Unaudited Unaudited Audited
Dec 2013 Dec 2012 June 2013
R'000 R'000 R'000
ASSETS
Non-current assets 4 354 882 3 772 862 4 324 662
Investment properties 4 278 426 3 653 965 4 246 848
Straight-line rent income accrual 2 729 4 342 4 152
Investment properties and related
accrual 4 281 155 3 658 307 4 251 000
Furniture, fittings and equipment 1 031 463 899
Goodwill 72 600 114 000 72 600
Investment in associate 96 92 163
Current assets 434 917 267 655 448 263
Non-current assets held for sale 326 736 218 034 318 900
Properties held for trading 19 917 19 702 19 708
Trade and other receivables 56 272 21 938 42 260
Cash and cash equivalents 31 992 7 981 67 395
Total assets 4 789 799 4 040 517 4 772 925
EQUITY AND LIABILITIES
Equity 693 164 370 480 690 752
Share capital and share premium 476 199 392 127 476 199
Retained earnings 70 127 112 671 73 884
Fair value reserve 146 838 (134 318) 140 669
Non-current liabilities 3 692 072 3 521 203 3 708 134
Debentures 2 318 197 2 126 946 2 314 441
Interest-bearing liabilities 1 363 139 1 320 629 1 372 627
Derivative liability 10 736 36 898 21 066
Deferred taxation - 36 730 -
Current liabilities 404 563 148 834 374 039
Trade and other payables 48 091 50 410 67 151
Short-term portion of interest-bearing
liabilities 230 000 - 200 000
Derivative liability 4 162 3 984 -
Taxation - - 1 153
Debenture interest payable 122 310 94 440 105 735
Total equity and liabilities 4 789 799 4 040 517 4 772 925
A. Net asset value per linked unit
(Rand)
A-linked unit 10,97 10,01 10,95
B-linked unit 10,97 10,01 10,95
B. Net asset value per linked unit
(excluding deferred taxation) (Rand)
A-linked unit 10,97 10,16 10,95
B-linked unit 10,97 10,16 10,95
STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2013
Fair
Share Share Retained value
capital premium earnings reserve Total
R'000 R'000 R'000 R'000 R'000
Balance at 1 July 2012 25 392 102 115 278 (136 522) 370 883
Loss/Total comprehensive loss
for the period - - (403) - (403)
Transfer to fair value reserve
- interest rate swaps - - (2 204) 2 204 -
Balance at 31 December
2012 25 392 102 112 671 (134 318) 370 480
Balance at 1 July 2013 27 476 172 73 884 140 669 690 752
Profit/Total comprehensive
income for the year - - 2 412 - 2 412
Transfer to fair value reserve
- interest rate swaps - - (6 169) 6 169 -
Balance at 31 December
2013 27 476 172 70 127 146 838 693 164
STATEMENT OF CASH FLOWS
for the six months ended 31 December 2013
Unaudited Unaudited Audited
Dec 2013 Dec 2012 June 2013
R'000 R'000 R'000
Cash flows from operating activities
Cash generated from operations 159 931 174 702 336 430
Finance income received 1 349 228 1 819
Finance costs paid (71 914) (66 127) (134 139)
Taxation (383) (84) (89)
Distribution to unitholders (106 504) (62 052) (156 500)
Net cash (outflow)/inflow from
operating activities (17 521) 46 667 47 521
Cash flows from investing activities
Acquisition and development of
investment properties (37 991) (14 486) (481 989)
Properties held for trading (209) (722) (728)
Acquisition of furniture and equipment (344) (147) (799)
Dividends received from associate 150 125 125
Loan from associate - - -
Net cash outflow from investing
activities (38 394) (15 230) (483 391)
Cash flows from financing activities
Proceeds from the issue of linked units - - 274 974
Share issue expenses paid - - (251)
Interest-bearing liabilities (repaid)/raised 20 512 (38 898) 213 100
Net cash inflow/(outflow) from
financing activities 20 512 (38 898) 487 823
Net (decrease)/increase in cash and
cash equivalents (35 403) (7 461) 51 953
Cash and cash equivalents at
beginning of year 67 395 15 442 15 442
Cash and cash equivalents at
end of period 31 992 7 981 67 395
CONDENSED SEGMENTAL INFORMATION
for the six months ended 31 December 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
R'000s agreements agreements agreements Office segments
Statement of
Comprehensive Income
- 31 December 2013
Segment revenue 63 404 138 046 11 129 - 212 579
Expenditure - - - (19 790) (19 790)
Segment results 63 404 138 046 11 129 (19 790) 192 789
Statement of
Comprehensive Income
- 31 December 2012
Segment revenue 61 986 104 360 7 611 - 173 957
Expenditure - - - (14 591) (14 591)
Segment results 61 986 104 360 7 611 (14 591) 159 366
Statement of Financial
Position
- 31 December 2013
Non-current assets
Investment properties 926 403 3 092 207 262 545 - 4 281 155
Current assets
Non-current assets
held for sale 81 000 245 736 - - 326 736
Trade and other
receivables 6 207 367 29 243 20 455 56 272
Segment assets 1 013 610 3 338 310 291 788 20 455 4 664 163
Statement of
Financial Position
- 31 December 2012
Non-current assets
Investment properties 1 044 666 2 362 601 251 040 - 3 658 307
Current assets -
Non-current assets
held for sale - 218 034 - - 218 034
Trade and other
receivables 2 796 7 696 - 11 446 21 938
Segment assets 1 047 462 2 588 331 251 040 11 446 3 898 279
Web: www.hpf.co.za
26 February 2014
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 26/02/2014 11:15:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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