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DELTA INTERNATIONAL PROPERTY HOLDINGS LIMITED - Unaudited interim results for the quarter ended 30 September 2014 and no change annoucement

Release Date: 23/12/2014 15:00
Code(s): DLI     PDF:  
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Unaudited interim results for the quarter ended 30 September 2014 and no change annoucement

DELTA INTERNATIONAL PROPERTY HOLDINGS LIMITED
(Formerly Osiris Properties International Limited)
(Incorporated in Bermuda with registration number 46566)
BSX share code: DLI.BH
JSE share code: DLI
ISIN: BMG2707T1018
("Delta International", "the Company" or "the Group")

UNAUDITED INTERIM FINANCIAL RESULTS FOR THE QUARTER ENDED 30 SEPTEMBER 2014 AND NO CHANGE
ANNOUNCEMENT

A. UNAUDITED INTERIM FINANCIAL RESULTS FOR THE QUARTER ENDED 30 SEPTEMBER 2014

The Group is required to publish results for the three months ended 30 September 2014 in terms of the Listing
Regulations of the Bermuda Stock Exchange ("BSX"). Accordingly this announcement presents the unaudited
condensed consolidated financial results of the Group in respect of the financial period from 01 July 2014 to
30 September 2014.

DIRECTORS' COMMENTARY

Nature of the business

Delta International, previously known as Osiris Properties International Limited, was incorporated on 16 May 2012 in
Bermuda in accordance with the applicable laws of Bermuda. Delta International has a primary listing on the BSX and
a secondary listing on the Alternative Exchange ("AltX") of the Johannesburg Stock Exchange ("JSE Limited"). On 16
May 2014 the Company changed its name from Osiris Properties International Limited to Delta International
Property Holdings Limited.

The primary objective of the Company is to invest in premium real estate assets underpinned by long-term leases
with high quality tenants delivering strong sustainable income. The Company has changed its focus from the United
Kingdom and Europe to Africa (excluding South Africa) offering investors' direct access to high growth opportunities
in African real estate.

Business review

The Company has embarked on a strategy of acquiring a portfolio of African real estate assets (excluding assets in
South Africa) in furtherance of its stated objectives. To facilitate the acquisitions into Africa, the Company has set-up
Delta International Mauritius Limited (incorporated in Mauritius), Delta International Bahrain Limited (incorporated
in Bahrain) and Freedom Property Fund SARL (incorporated in Morocco) (collectively "the Group").

On 14 July 2014 the Group indirectly acquired the Anadarko Building through the acquisition of 100% of the issued
shares of SAL Investment Holdings Limited. The Anadarko Building is a 7,058 m2 office building located in Maputo,
Mozambique with Anadarko as the major tenant. The Anadarko building has contributed $4.6 million profit before
tax to the Group's income for the period.

On 25 July 2014 the Group acquired Anfa Place, a 30,711 m2 shopping centre located in Casablanca, Morocco from
Anfa Plage SA.

The acquisitions were financed through the issue of $86,508,752 in new Delta International shares as well as new
debt facilities within the wholly owned subsidiaries.

For the 3 months ended 30 September 2014, the Group showed a net loss after tax of $1.5 million. Included in the
loss is a deferred tax expense of $1.8 million relating to investment property fair value adjustments and an
unrealised foreign currency exchange loss of $4.4 million relating to inter-company USD denominated debt provided
to Freedom Property Fund SARL.

The loan to value ratio at 30 September 2014 was 44.5%.

The geographic breakdown of property revenue for the period under review was as follows:

Geographic revenue (by value):

Morocco 84%
Mozambique 16%

Geographic revenue (by GLA):

Morocco 81%
Mozambique 19%

Subsequent events

At a special general meeting held on 31 October 2014 the shareholders approved a change in the domicile of the
Company from Bermuda to Mauritius. The Company will be discontinued as an exempted company incorporated in
Bermuda and continued as a Global Business Company organized under the laws of Mauritius under the name "Delta
International Property Holdings Limited". The application to migrate the Company is still pending and is expected to
be completed in January 2015.

Prospects

The Company is in the process of finalising the transfer of two properties in Maputo, Mozambique, namely the
Hollard Building and the Vodacom Building. The acquisitions are expected to be finalised by March 2015.

The Company is committed to increasing its portfolio further and has identified a strong acquisition pipeline in
Mozambique, Morocco, Nigeria and Ghana on which it intends to transact. The acquisitions will be funded through a
combination of new equity and debt facilities.

Directors’ interests in shares
The interests of directors in the share capital of the Company were as follows:
                                                                     
                                          Beneficial                                       
Name                      Title      Direct      Indirect    % Shareholding
Non-executive directors                                                
Bronwyn Corbett           Director        –     3,126,377              7.12
Sandile Nomvete           Chairman        –     3 853 263              8.77
                                             6 979 640             15.89

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the quarter ended 30 September 2014

                                                       Foreign currency                         Total
                                                 Share      translation     Retained  attributable to
                                               capital          reserve     earnings   equity holders
                                                 $'000            $'000        $'000            $'000


Balance at 1 September 2013                        865             (31)           67              901
Total comprehensive loss for the period              -                -         (47)             (47)
Foreign currency translation reserve movement        -               84            -               84
Balance at 30 June 2014                            865               53           20              937

Total comprehensive loss for the period              -                -      (1,543)          (1,543)
Foregn currency translation reserve movement         -              257            -              257
Shares issued                                   86,509                -            -           86,509
Share issue expenses                           (1,082)                -            -          (1,082)
Balance at 30 June 2014                         86,291              310      (1,523)           85,078

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 September 2014
                                                                 Unaudited       Audited
                                                                     As at         As at
                                                                 30-Sep-14     30-Jun-14
                                                                     $'000         $'000
Assets
Non-current assets
Investment property                                                153,883             -
Fair value of property portfolio                                   149,861             -
Straight line rental income accrual                                  4,022             -
Property, plant and equipment                                           80             -
Goodwill                                                             4,904             -
Other financial assets                                                   -           276
Total non-current assets                                           158,867           276
Current assets
Trade and other receivables                                          7,263            32
Cash and cash equivalents                                            2,039           649
Total current assets                                                 9,302           681
Total assets                                                       168,169           957
Equity and liabilities
Total equity attributable to equity holders
Share capital                                                       86,291           865
Foreign currency translation reserve                                   310            53
Retained earnings                                                  (1,523)            19
Total equity attributable to shareholders                           85,078           937
Liabilities
Non-current liabilities
Interest-bearing borrowings                                         68,450             -
Deferred tax                                                         7,813             -
Total non-current liabilities                                       76,263             -
Current liabilities
Trade and other payables                                             6,419            20
Current tax payable                                                    409             -
Total current liabilities                                            6,828            20
Total liabilities                                                   83,091            20
Total equity and liabilities                                       168,169           957
Net asset value per share (cents)                                   193.72        141.07
Net asset value per share (excluding deferred taxation) (cents)     211.51        141.07

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 3 months ended 30 September 2014
                                                                                      Unaudited            Audited
                                                                                 3 months ended    10 months ended
                                                                                      30-Sep-14          30-Jun-14
                                                                                          $'000              $'000
Gross rental income                                                                       3,061                  -
Straight-line rental income accrual                                                       4,022                  -
Revenue                                                                                   7,083                  -
Investment income                                                                             -                 63
Property operating expenses                                                               (626)                  -
Net property income                                                                       6,457                 63
Other income                                                                                 24                  -
Administrative expenses                                                                   (174)               (77)
Profit / (loss) from operations                                                           6,307               (14)
Acquisition costs                                                                       (2,361)                  -
Set-up costs                                                                              (509)                  -
Fair value adjustment on investment property                                              1,740                  -
Disposal of investment in subsidiary                                                          -               (33)
Foreign currency loss                                                                   (3,836)                  -
Profit / (loss) before interest and taxation                                              1,341               (47)
Interest income                                                                               -                  -
Finance costs                                                                             (788)                  -
Profit / (loss) for the period before tax                                                   553               (47)
Current tax expense                                                                       (273)                  -
Deferred tax expense                                                                    (1,823)                  -
Loss for the period after tax                                                           (1,543)               (47)
Gain on translation of presentation currency                                                257                 84
Total comprehensive (loss) / income for the period attributable to equity holders       (1,285)                 36

RECONCILIATION OF EARNINGS, HEADLINE EARNINGS AND DISTRIBUTABLE EARNINGS
For the 3 months ended 30 September 2014
                                                                                 Unaudited           Audited
                                                                            3 months ended   10 months ended
                                                                                 30-Sep-14         30-Jun-14
                                                                                     $'000             $'000
Basic earnings                                                                     (1,285)                36
Fair value adjustment on investment property (net of deferred taxation)            (1,128)                 -
- Fair value adjustment                                                            (1,740)                36
- Deferred taxation                                                                    612                 -
Gains or loss on the loss of control of a subsidiary                                     -                33
Foreign currency translation reserve movement                                        (257)              (84)
Headline loss attributable to shareholders                                         (2,670)              (14)
Straight-line rental income accrual (net of deferred taxation)                     (2,811)                 -
- Straight line rental income accrual                                             (4,022)                 -
- Deferred taxation                                                                 1,211                 -
Unrealised foreign currency exchange differences                                     4,421                 -
Acquisition costs                                                                    2,361                 -
Set-up costs                                                                           508                 -
Distributable earnings attributable to shareholders for the period                   1,809              (14)
Distribution from reserves                                                               -                 -
Less: distribution declared                                                              -                 -
Earnings not distributed                                                             1,809              (14)
Number of shares entitled to distribution                                       43,918,556           664,180
Distributable earnings per share not distributed (cents)                              4.12               N/A
Number of shares in issue                                                       43,918,556           664,180
Weighted average number of shares in issue                                       9,168,569           664,180
Basic (loss) / earnings per share (cents)*                                         (14.02)              5.48
Headline loss per share (cents)*                                                   (29.12)            (2.10)
* The Company does not have any dilutive intruments in issue

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the 3 months ended 30 September 2014
                                                                    Unaudited            Audited
                                                               3 months ended    10 months ended
                                                                    30-Sep-14          30-Jun-14
                                                                        $'000              $'000
Net cash generated from / (utilised in) operating activities               85              (334)
Net cash (utlised in) / generated from investing activities          (94,756)                651
Net cash generated from financing activities                           96,061                294
Net cash at the beginning of the period                                   649                 39
Net cash at the end of the period                                       2,039                649

CONSOLIDATED SEGMENTAL ANALYSIS

                                  Unaudited      Audited
                                   3 months    10 months
                                      ended        ended
                                  30-Sep-14    30-Jun-14
                                      $'000        $'000

Profit / (loss) before tax
Morocco                             (2,483)            -
Mozambique                            5,425            -
Corporate                           (2,389)         (47)
Total                                 (553)         (47)



                                  Unaudited      Audited
                                      As at        As at
                                  30-Sep-14    30-Jun-14
                                      $'000        $'000

Total assets
Morocco                             124,807            -
Mozambique                           37,938            -
Corporate                             5,425            -
Total                               168,170            -

Basis of preparation

The unaudited interim results for the three months ended 30 September 2014 have been prepared in accordance
with International Financial Reporting Standards ("IFRS"), including IAS 34 – Interim Financial Reporting, the rules of
the BSX and the Listings Requirements of the JSE Limited.

The results below have not been audited or reviewed by the Company's external auditors, Deloitte Limited Bermuda.
The accounting policies adopted are consistent with those published in the audited annual financial statements for
the year ended 30 June 2014.

Further details concerning the Company and this regulatory release can be accessed via the Company's website at
www.deltainternationalproperty.com.

By order of the Board
Sandile Nomvete                    Louis Schnetler
Chairman                           Chief Executive Officer

Bermuda
18 December 2014

B. NO CHANGE ANNOUNCEMENT - RELEASE OF INTEGRATED ANNUAL REPORT AS AT 30 JUNE 2014

In a filing with the BSX, Delta International, today released its results for the year ended 30 June, 2014.

Shareholders are advised that Delta International's annual report, incorporating the audited financial statements for
the year ended 30 June 2014, was published on the Company's website (www.deltainternationalproperty.com)
today, 23 December 2014, and contains no changes to the provisional reviewed results for the ten months ended 30
June 2014, which were announced on 30 September 2014.

Delta International has a primary listing on the Bermuda Stock Exchange and a secondary listing on the Alternative
Exchange of the JSE Limited.

Details and timing of the company's annual general meeting will be published in due course.

23 December 2014

Registered office
Williams House, 3rd Floor, 20 Reid Street, Hamilton, Bermuda, HM11

Directors: Sandile Hopeson Nomvete (Chairman and non-executive director), Louis Schnetler (Chief executive
officer), Greg Pearson (Chief operating officer), Greg Booyens (Chief financial officer), Bronwyn Anne Corbett (Non-
executive director), James Keyes (Independent non-executive director), David Brown (Independent non-executive
director) and Peter Todd (Independent non-executive director).

Auditors: Deloitte Limited (Bermuda)

Transfer secretary: Computershare Investor Services Proprietary Limited, Ground Floor, 70 Marshall Street,
Johannesburg, 2001, South Africa

Registrar and transfer agent: Apex Fund Services Limited

BSX sponsor: Global Custody and Clearing Limited

JSE sponsor: Java Capital

Company secretary: Apex Fund Services Limited
Date: 23/12/2014 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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