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Unaudited interim results for the six months ended 31 December 2014 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
Income tax reference number: 9770/799/1/47
("Hospitality" or "the Fund" or "the Company")
Unaudited Interim Results for the six months ended 31 December 2014 and interest payment declaration
Comments
1. Introduction
Hospitality is the only Specialised Real Estate Investment Trust ("REIT") listed on the
JSE that offers investors an investment vehicle in the hospitality sector through the
ownership of a portfolio of hotel properties.
Hospitality's strategy is to focus on growing its exposure to large hotels in major
metropolitan centres ("core portfolio"). The performance of the Fund during the first
six months of the year reflected the impact of a weaker hospitality trading environment,
however, its core portfolio occupancy and room rates continue to track industry trends.
The Western Cape and Sandton portfolios continue to show strong growth. Strategic
properties in the portfolio have also undergone selective refurbishments, sustaining their
appeal within their target markets, with total capital expenditure of R50 million in the
six months.
Distributable earnings per combined linked unit decreased by 7,4% to 82,45 cents
(2014: 89,08 cents), and remains in line with the trading statement released on
25 November 2014 ("the forecast") of 82,33 cents. The A-linked unit distribution of
73,33 cents (2014: 69,83 cents) showed a 5,0% increase, consistent with the forecast and
the distribution policy. The distribution of the B-linked unit declined 52,6% to 9,12 cents
(2014: 19,25 cents), in-line with the forecast of 9,0 cents.
2. Trading environment
According to the STR Global South Africa Hotel Review, the hotel industry reported a
year-on-year increase in occupancy of 1.0% to 64,3% for the reporting period. This is due
to the subdued pace of domestic economic growth. Average daily rates ("ADR") for the
industry were up 5,9% to R1,022, resulting in revenue per available room ("RevPAR")
growth of 7,0%. In addition to the muted economy, other factors impacting the South
African hospitality industry during the six months under review included reduced
international travel as a result of the Ebola epidemic in Africa and its perceived impact on
South Africa, while arrivals from Asian countries have also been negatively impacted by
the recently implemented visa requirements. In addition, restricted public sector spending
in line with cost saving measures imposed by the Finance Ministry also contributed to
the lower demand from government segments. Hospitality's trading performance for the
core portfolio which is subject to variable rental income and excluding conference hotels
(hotels where the revenue generated from conferencing exceeds rooms revenue), was
in line with the overall hotel and leisure market. Occupancy increased by 1.1% to 66.3%,
ADR increasing 4.4% to R1,290 resulting in RevPar growth of 5.6% to R855 for the six
months to 31 December 2014.
OCCUPANCY ADR RevPAR
FY2015 FY2014 Variance FY2015 FY2014 Variance FY2015 FY2014 Variance
Core 66.3% 65.5% 1.1% R1 290 R1 236 4.4% R855 R810 5.6%
Secondary 50.9% 54.2% (6.1%) R725 R685 5.8% R369 R371 (0.7%)
Total 62.6% 62.9% (0.4%) R1 182 R1 124 5.2% R740 R706 4.8%
Gross rental income Property valuation
R 000 % R 000 %
Fixed leases 19 713 9,1 287 720 5,7
F&V leases 197 680 90,9 4 748 835 94,3
Core portfolio 145 132 66,8 3 604 881 71,6
Secondary portfolio 12 830 5,9 302 891 6,0
Conference portfolio 39 717 18,3 841 063 16,7
217 392 100,0 5 036 555 100,0
Management continually monitors and interacts with tenants to maintain a full
understanding of their underlying business performance and to evaluate the serviceability
of rentals. This has become an increasingly important driver of distribution growth as the
proportion of the Fund's rental income from F&V leases has grown.
3. Results
The Fund reported rental income growth of 2,3% to R217,4 million (2014: R212,6 million),
reflecting the weaker hospitality trading environment. In addition, the prior year result
was boosted by higher rates in December 2013 with the arrival of a number of foreign
dignitaries to South Africa, to pay tribute to the late President Nelson Mandela. The
resultant year-on-year impact was a decline of some R10 million, experienced mainly at
the Fund's Sandton properties. In addition, the negative impact of the lease conversion
at Birchwood Hotel and OR Tambo Conference Centre ("Birchwood") from a fixed
to a F&V lease was R6,7 million compared to the previous year. The Fund's properties
in outlying areas, predominantly those on the disposal list ("secondary portfolio"),
experienced a sharper decline in demand than in the core portfolio. However, strong
trading results from its properties in the Western Cape, which are all well-located,
somewhat ameliorated these factors. The Fund's Courtyard Hotels continued to
underperform during the period and this portfolio is now also being marketed for sale.
The change in hotel operator at Kopanong led to an improved performance.
Fund expenses decreased by R1,5 million (7,7%) to R18,3 million.
Net finance costs were up 13,7% to R80,3 million (2014: R70,6 million), due to additional
debt of R196 million raised to fund acquisitions and capital projects, the impact of
additional swaps contracted for and the 25 basis points rise in the South African prime
overdraft rate in July 2014.
The following table reflects the operating financial results for the six months ended
31 December 2014 compared to the previous financial year:
Actual 2014 Actual 2013 Variance Variance
R'000 R'000 R'000 %
Contractual rental 217 392 212 579 4 813 2.3
Fund expenses (18 264) (19 790) 1 526 7.7
Net finance costs (80 266) (70 565) (9 701) (13.7)
Taxation – (46) 46 100.0
Income from associates 101 83 18 21.7
Debenture interest (118 963) (122 261) 3 298 2.7
A-linked unit (105 805) (95 843) (9 962) (10.4)
B-linked unit (13 158) (26 418) 13 260 (50.2)
Distribution comparative to prior year and revised forecast:
Actual 2014 Actual 2013 Variance % Rev Fcst 2014 Variance %
Distribution – A-linked unit (cents) 73.33 69.83 5.0 73.33 0.0
Distribution – B-linked unit (cents) 9.12 19.25 (52.6) 9.0 1.3
Combined distribution (cents) 82.45 89.08 (7.4) 82.33 0.1
Number of units in issue 144 285 503 137 237 530 5.1 144 285 503 0.0
4. Funding
The group's debt facilities with financial institutions as at 31 December 2014 amounted
to R1,89 billion. Total funds drawn on these facilities were R1,79 billion resulting in a
loan to value ("LTV") ratio (total interest-bearing liabilities/investment properties plus
properties held for sale) of 35,5% (2014: 34,6%).The interest cover ratio was 2,48 which
is well within the minimum covenant level of 2,00 required by the debt providers.
The average cost of borrowings was 9,23% (2014: 9,02%) for the period under review,
with 68% of the group's borrowings subject to fixed interest rates.
Facility Interest rate Repmt date
Nedbank
Loan 1 176 300 000 3-month JIBAR plus 2,67% June 2020
Loan 2 400 000 000 3-month JIBAR plus 2,8% Oct 2019
Loan 3 30 250 000 3-month JIBAR plus 2,85% Oct 2018
Loan 4 150 000 000 3-month JIBAR plus 2,38% Feb 2018
Loan 5 150 000 000 3-month JIBAR plus 2,84% June 2016
Loan 6 50 000 000 3-month JIBAR plus 2,38% Feb 2018
Loan 7 67 000 000 3-month JIBAR plus 2,38% July 2018
1 023 550 000
54%
Corporate bonds
Secured – HPF 01 150 000 000 3-month JIBAR plus 1.82% April 2016
Unsecured – HPF 02 40 000 000 3-month JIBAR plus 2.4% April 2015
Unsecured – HPF 03 80 000 000 3-month JIBAR plus 2.7% April 2016
Secured – HPF 04.1 300 000 000 3-month JIBAR plus 2,0% Feb 2017
Secured – HPF 04.2 100 000 000 3-month JIBAR plus 2,0% Feb 2017
Secured – HPF 05 200 000 000 Fixed at 9.89% Feb 2017
870 000 000
46%
1 893 550 000
SWAPS/FIXED
Nominal rate Expiry
Collar swap – Floor 6.0%/
Nedbank swap 1 150 000 000 Ceiling 9.09% Sep 2016
Nedbank swap 2 150 000 000 Vanilla swap – 6.4% Oct 2016
Nedbank swap 3 100 000 000 Vanilla swap – 7.05% Sep 2017
RMB swap 2 346 667 000 Vanilla swap – 7.96% July 2016
Collar swap – Floor 6.65%/
RMB swap 3 250 000 000 Ceiling 9.20% Feb 2016
RMB swap 4 100 000 000 Vanilla swap – 7.05% Sep 2017
Secured – HPF 05 200 000 000 Fixed at 9.89% Feb 2017
1 296 667 000
Additional five-year secured notes for R60 million and 2.5-year secured notes for
R80 million were issued in February 2015. The proceeds will be utilised to repay
the R40 million unsecured note that matures in April 2015 and to fund the capital
expenditure programme for FY2016.
The Fund continually reviews the optimal method of funding new acquisitions and capital
projects with consideration given to the options of new unit issues, replacement of bank
funding and the group's DMTN programme. When contracting for new debt, the group
endeavours to optimally spread the maturity to minimise its exposure to large debt
maturities in any single year.
5. Capital structure
Hospitality was awarded REIT status by the JSE Limited ("JSE") with effect from
1 July 2013. In order to maintain its REIT status and ensure that it may continue to
benefit from the tax efficiencies granted to REITs as set out in section 25BB of the
Income Tax Act, the company is required to comply with section 13 of the JSE Listings
Requirements.
The JSE has granted REIT companies dispensation until 1 July 2015 to comply with
the gearing requirement of section 13 of the Listings Requirements that the total
consolidated IFRS liabilities of a REIT may not exceed 60% of its consolidated IFRS
assets. In this regard, the JSE agreed to the exclusion of the existing debentures issued
as part of Hospitality's linked units and the related premium from its liabilities for the
purposes of the gearing test until such date.
In this regard, Hospitality will propose a restructuring of the Company's linked unit capital
structure to A and B shares by way of a scheme of arrangement in terms of sections
114 and 115 of the Companies Act, 71 of 2008 at a Special General Meeting to be held
during the month of April 2015. A circular and meeting notice relating to the restructure
will be circulated to linked unitholders in due course.
6. Property portfolio
The Fund's portfolio comprises interests in 26 hotel and resort properties in South
Africa. As at 31 December 2014, the carrying amount of the portfolio was R5,0 billion.
The net asset value (NAV) per linked unit as at 31 December 2014 was R11,24, an
increase of 2,5% from 2013. The combined linked unit market value of the Fund's
securities at the end of the period traded at a 30% discount to the NAV.
The weighted average lease expiry period is 11.36 years.
7. Acquisitions and disposals
The Fund continues to evaluate opportunities to deliver on its strategy
and is accelerating the disposal of properties from its secondary
portfolio. This will unlock additional capital resources while releasing
management time to focus on the core portfolio.
The renegotiation of the new fixed and variable lease at Birchwood
from 1 July 2014 included the investment by the Fund of a further
R60 million in the property for the Terminal Convention Centre
development, funded through the issue of linked units to the sellers.
This facility is uniquely positioned to accommodate large conferences of
approximately 2 000 delegates. Its scale and proximity to the OR Tambo
International Airport, coupled with the 665 available rooms continue to
differentiate this hotel from its competitors.
The Fund invested R76,6 million to acquire additional units at the
Radisson Blu Waterfront, increasing its share of the rental pool by 19%
to 54%.The acquisition was funded by a combination of debt and equity.
Due to its prime location at the Waterfront development in Cape
Town, coupled with recent refurbishments, this property enjoys strong
demand from both leisure travellers and corporate conferences.
8. Developments and capital projects
The Fund continued to upgrade several of its properties during the
period, as follows:
- R11,0 million was invested to reposition the Mount Grace Country
House and Spa with the construction of a mountain cycling club
and children's entertainment facilities leading to improved demand
in the peak summer holiday period.
- Refurbishment of 167 rooms at Birchwood for R12,3 million to
support the hotel's initiatives to attract additional corporate clients,
including the relaunch of a section of the hotel as "The Silverbirch Hotel".
- Four new rooms were added at the Radisson Blu Gautrain and the
public areas were upgraded, with a total investment of R10,3 million.
- The Radisson Blu Waterfront conference facilities and public areas
were refurbished, at a cost of R9,4 million.
- An outdoor swimming pool, with an investment of R8,4 million, was
completed at The Westin Cape Town to enhance the appeal of the
hotel to the leisure market.
The Fund is awaiting a final decision on the approval of Phase 2 at
Arabella Hotel & Spa by the Minister of Environmental Affairs and
Development Planning.
9. Liquidity
During the six months, 11.3% of the A-linked units and 35.4% of the
B-linked units were traded on the JSE Limited.
10. Board of directors
Mr Kamil Abdul Karrim resigned as an independent non-executive
director with effect from 31 December 2014. He served on the Board
since listing of the Fund in 2006 and was a valued member of the Audit
and Risk, and Investment Committees. The Board would like to express
its gratitude to Mr Abdul Karrim for the significant contribution during
this period. The Board and its committees remain properly constituted
following Mr Abdul Karrim's resignation.
11. Prospects
The short-term outlook for the economy and the hospitality sector
remains uncertain.
Hospitality's underlying performance will be impacted by a renewal
of the lease at Champagne Sports Resort ("Champagne") from 1 July
2015. Due to escalations in the fixed rental since 2006 the rental at
expiry is significantly higher than market which will result in a reversion
of approximately R7 million per annum. Furthermore, a refurbishment will be
required at the hotel in order to maintain market share.
No further fixed lease rental income reversions are due following the
restructure of the Champagne lease.
12. Payment of distribution
Unitholders will receive distribution payment number 18 for the six-
month period ended 31 December 2014 of 73,33 cents per A-linked
unit and 9,12 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").
The number of units in issue at the date of the declaration is 144 285 503.
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 ceases 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 CSDPs, brokers 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-resident
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 agreement for the avoidance of double taxation
("DTA") between South Africa and the country of residence of the
linked unitholder. Assuming dividend withholding tax is withheld at a
rate of 15%, the net amount due to non-resident unitholders will be
62,3305 cents per A-linked unitholder and 7,752 cents per B-linked
unit. 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 ceases 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 CSDPs, brokers 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 interest Friday, 13 March 2015
Linked units will trade ex-interest Monday, 16 March 2015
Record date Friday, 20 March 2015
Payment date Monday, 23 March 2015
Unitholders may not dematerialise or rematerialise their linked units between
Monday,16 March and Friday, 20 March 2015 both days inclusive.
By order of the Board
D G Bowden A S Rogers
(Chairman) (Chief Executive Officer)
24 February 2015
Directors: D G Bowden (Chairman)*+, A S Rogers (CEO),
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 6320 Fax: +27 11 994 6321 Email: info@hpf.co.za
Web: www.hpf.co.za
Sponsor: Rand Merchant Bank (a division of FirstRand Bank Limited)
25 February 2015
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 consolidated financial statements have been prepared in
accordance with the requirements of the JSE Limited Listings Requirements
for preliminary reports and the requirements of the Companies Act of
South Africa. The Listings Requirements require preliminary reports to be
prepared in accordance with the framework concepts and the measurement
and recognition requirements of International Financial Reporting Standards
(IFRS) and the SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee and the Financial Pronouncements as issued by the
Financial Reporting Standards Council and to also, as a minimum, contain
the information required by IAS 34 Interim Financial Reporting. KPMG Inc.,
the independent auditor, has not reviewed the financial statements. The
accounting policies applied are consistent with those applied in the previous
year's consolidated annual financial statements, with the exception of
the adoption of new and revised standards which became effective during
the year.
STATEMENTS OF COMPREHENSIVE INCOME
for the six months ended 31 December 2014
Unaudited Unaudited Audited
Dec 2014 Dec 2013 June 2014
R'000 R'000 R'000
Revenue 217 027 211 156 423 174
Rental income – contractual 217 392 212 579 426 276
– straight-line accrual (365) (1 423) (3 102)
Expenditure (18 264) (19 790) (40 524)
Operating expenses (18 264) (19 790) (40 524)
Operating profit 198 763 191 366 382 650
Transaction costs on business combination – – –
Profit on properties held for sale – – –
Net finance cost (80 266) (70 565) (146 041)
Finance income 4 511 1 349 4 371
Finance costs (84 777) (71 914) (150 412)
Profit before distribution, goodwill, fair value
adjustments and taxation 118 497 120 801 236 609
Recoupment of distribution – – 531
Distribution (118 963) (122 261) (240 014)
Loss before fair value adjustments, goodwill
and taxation (466) (1 460) (2 874)
Fair value adjustments 922 7 592 116 275
Investment properties, before straight-lining
adjustment – – 153 772
Straight-line rental income accrual 365 1 423 3 102
Total fair value of investment properties 365 1 423 156 874
Goodwill impairment – – (53 400)
Interest-rate swaps 557 6 169 12 801
Profit before taxation 456 6 132 113 401
Debenture discount amortisation (4 082) (3 757) (7 480)
Equity accounted profit from associate
after tax 93 83 238
Taxation – (46) (181)
Total profit/(loss) and comprehensive
income for the period (3 533) 2 412 105 978
Reconciliation between earnings, headline
earnings and distributable earnings
Total profit/(loss) and comprehensive
income for the period (3 533) 2 412 105 978
Adjustments: Distribution 118 963 122 261 240 014
Profit/(loss) (linked units) 115 430 124 673 345 992
Adjustments:
Equity accounted profit from associate after
tax – – –
Gain on bargain purchase – – –
Goodwill impairment – – 53 400
Fair value – investment properties revaluation,
net of tax – – (153 772)
Fair value – straight-line rental income (365) (1 423) (3 102)
Headline earnings (linked units) 115 065 123 250 242 518
Fair value – interest rate swaps (557) (6 169) (12 801)
HPF Employee Incentive Trust effects 8 – (285)
Debenture discount amortisation 4 082 3 757 7 480
Straight-line rental income 365 1 423 3 102
Distributable earnings 118 963 122 261 240 014
Number of units/shares – – –
A-linked unit 144 285 503 137 237 530 138 149 717
B-linked unit 144 285 503 137 237 530 138 149 717
Weighted average number of units/shares
A-linked unit 140 506 693 137 237 530 137 639 080
B-linked unit 140 506 693 137 237 530 137 639 080
Distribution per linked unit (cents)
A-linked unit 73.33 69.84 141.03
– Interim 73.33 69.84 69.83
– Final – – 71.20
B-linked unit 9.12 19.25 33.45
– Interim 9.12 19.25 19.25
– Final – – 14.20
82.45 89.09 174.48
Profit per linked units (cents)
A-linked unit 41.08 45.42 126.46
B-linked unit 41.08 45.42 126.46
82.15 90.84 252.92
Headline earnings per linked unit (cents)
A-linked unit 40.95 44.90 88.64
B-linked unit 40.95 44.90 88.64
81.89 89.81 177.28
Earnings and diluted earnings per ordinary
share (cents) 41.08 45.42 126.46
STATEMENT OF CASH FLOWS
for the six months ended 31 December 2014
Unaudited Unaudited Audited
Dec 2014 Dec 2013 June 2014
R'000 R'000 R'000
Cash flows from operating activities
Cash generated from operations 192 059 159 931 391 132
Finance income received 4 511 1 349 4 371
Finance costs paid (84 777) (71 914) (150 412)
Taxation (134) (383) (1 200)
Distribution to unitholders (118 142) (106 504) (227 607)
Net cash (outflow)/inflow from operating
activities (6 483) (17 521) 16 284
Cash flows from investing activities
Acquisition and development of investment
properties (208 655) (37 991) (104 228)
Properties held for trading (362) (209) (827)
Acquisition of furniture and equipment (173) (344) (484)
Dividends received from associate 200 150 150
Loan from associate – – –
Net cash outflow from investing activities (208 990) (38 394) (105 389)
Cash flows from financing activities
Proceeds from the issue of linked units 119 694 – 18 985
Share issue expenses paid (3 004) – (77)
HPF shares and debentures held by trust – (9 995)
Interest-bearing liabilities (repaid)/raised 16 536 20 512 200 000
Net cash inflow/(outfl ow) from financing
activities 133 226 20 512 208 913
Net (decrease)/increase in cash and
cash equivalents (82 247) (35 403) 119 808
Cash and cash equivalents at beginning
of year 187 203 67 395 67 395
Cash and cash equivalents at end of period 104 956 31 992 187 203
STATEMENTS OF FINANCIAL POSITION
as at 31 December 2014
Unaudited Unaudited Audited
Dec 2014 Dec 2013 Jun 2014
R'000 R'000 R'000
Non-current assets 4 745 015 4 354 882 4 536 393
Investment properties 4 724 131 4 278 426 4 514 950
Straight-line rent income accrual 685 2 729 1 050
Investment properties and related
accrual 4 724 816 4 281 155 4 516 000
Furniture, fittings and equipment 855 1 031 942
Goodwill 19 200 72 600 19 200
Investment in associate 144 96 251
Current assets 475 989 434 917 577 725
Non-current assets held for sale 311 739 326 736 311 900
Properties held for trading 20 897 19 917 20 535
Trade and other receivables 38 397 56 272 58 087
Cash and cash equivalents 104 956 31 992 187 203
Total assets 5 221 004 4 789 799 5 114 118
EQUITY AND LIABILITIES
Equity 832 617 693 164 801 847
Share capital and share premium 515 619 476 199 481 316
Retained earnings 9 199 70 127 13 289
Fair value reserve 307 799 146 838 307 242
Non-current liabilities 4 168 528 3 692 072 4 066 078
Debentures 2 411 657 2 318 197 2 325 186
Interest-bearing liabilities 1 749 163 1 363 139 1 732 627
Derivative liability 7 708 10 736 8 265
Current liabilities 219 859 404 563 246 193
Trade and other payables 60 896 48 091 87 917
Short-term portion of interest-bearing
liabilities 40 000 230 000 40 000
Derivative liability – 4 162 –
Taxation – – 134
Distribution payable 118 963 122 310 118 142
Total equity and liabilities 5 221 004 4 789 799 5 114 118
A. Net asset value per linked unit (Rand)
A-linked unit 11.24 10.97 11.40
B-linked unit 11.24 10.97 11.40
STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 December 2014
Share Share Retained Fair value
capital premium earnings reserve Total
R'000 R'000 R'000 R'000 R'000
Balance at 1 July 2013 27 476 172 73 884 140 669 690 752
Profit/total comprehensive
income for the period – – 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
Balance at 1 July 2014 27 481 289 13 289 307 242 801 847
Issue of shares 2 37 305 – – 37 307
Share issue expense, net of tax – (3 004) – – (3 004)
Loss/total comprehensive loss for
the year – – (3 533) – (3 533)
Transfer to fair value reserve –
interest rate swaps – – (557) 557 –
Balance at 31 December 2014 29 515 590 9 199 307 799 832 617
CONDENSED SEGMENTAL INFORMATION
for the six months ended 31 December 2014
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
Fixed lease F & V lease lease Head all operating
R'000 agreements agreements agreements Office segments
Statement of
Comprehensive Income
– 31 December 2014
Segment revenue 19 713 183 393 14 286 – 217 392
Expenditure – – – (18 264) (18 264)
Segment results 19 713 183 393 14 286 (18 264) 199 128
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 Financial
Position – 31 December
2014
Non-current assets
Investment properties 287 720 3 730 323 395 034 – 4 724 816
Current assets
Non-current assets
held for sale – 311 739 – – 311 739
Trade and other
receivables 8 1 589 258 36 542 38 397
Segment assets 287 728 4 043 651 395 292 36 542 5 074 952
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
Web:www.hpf.co.za
Date: 25/02/2015 10:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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