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Reviewed Condensed Consolidated Provisional Financial Results For The Year Ending 28 February 2015
Freedom Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration No. 2012/129186/06)
Share code: FDP ISIN: ZAE000185260
("Freedom" or "the Company" or "the Group")
REVIEWED CONDENSED CONSOLIDATED
PROVISIONAL FINANCIAL RESULTS
FOR THE YEAR ENDING 28 FEBRUARY 2015
HIGHLIGHTS:
- NAV per share increase of 6.06% from interim to a value of 130.45 cents
- Headline earnings of 1.49 cents per share increased compared with forecasted 1.12 cents
- Combined revenue streams signifcantly up on forecast.
INTRODUCTION
Freedom Property Fund Limited ("Freedom" or "the Company" or "the Group") is a JSE listed holding and
development property company which operates across all primary sectors of the property industry namely
industrial, commercial and predominantly residential. The fundamental focus of Freedom is to strategically
acquire and develop prime properties thereby creating a portfolio that will generate sustainable income streams
in the future. As such the Company is ideally positioned to provide significant capital growth initially and
thereafter potentially convert to a Real Estate Investment Trust ("REIT") structure, thereby making it a unique
asset to hold.
The first eight and a half months, up to 28 February 2015, have been an exciting period for all parties involved. It
has been a time of growth and focus on setting up the necessary management structures and systems to
manage and implement the acquired projects thus optimising value for all stakeholders.
Freedom presents its maiden reviewed condensed consolidated provisional annual financial results of the
Company and its subsidiaries (all wholly owned) for the year ending 28 February 2015 ("the financial year").
1. FINANCIAL RESULTS
1.1. Comparative Results
Freedom was established specifically to acquire selected properties and list on the JSE Limited ("JSE"),
as set-out in the pre-listing statement dated 5 June 2014 ("Pre-listing Statement"). The various
acquisitions, being subject to listing approval, became effective at various times between 1 March 2014
and the listing date of 12 June 2014.
1.2. Revenues
Total revenue (R42 779 795) is significantly up on the forecast (R28 300 682) per the Supplementary
Circular issued on 5 June 2014. This is mainly due to higher than forecast sales of development
properties (stock of serviced stands).
In preparing the projections for the year ending 28 February 2015, management's immediate outlook
for revenues from sales of properties was not high as it was expected that marketing initiatives would
take some time to implement. The forecast revenues for sales of development properties of R8 483
922 for the year have to date been exceeded significantly with sales totalling R23 720 295 during the
period.
Whilst investment property revenue is down slightly on forecast, management is confident that the
expanded facilities at Steelpoort Industrial will add to the revenue base of the group in the coming year.
As highlighted below (see Operations - Para 2.1), Freedom has developed a further 6 306m² of
revenue generating industrial facilities at Steelpoort Industrial and will continue to do so as demand
requires.
The following table provides a comparison of actual revenues generated by Freedom and the forecast
for the financial year (as set out in Annexure 1 of the supplementary circular dated 5 June 2014). The
Actual for the Forecast for the
12 months ending 12 months ending
28 February 2015 28 February 2015
Revenue – Investment Property Income 19 059 500 19 816 760
Revenue – Development Property 23 720 295 8 483 922
Sales
Cost of Sales (9 413 880) (2 899 479)
Gross Profit 33 365 915 25 401 203
acquisition of Kadoma was effective from 1 March 2014, providing the majority of the Company's
income and contributing a full 12 month's revenues reflected in the revenues to 28 February 2015.
1.3. Headline Earnings
In the interim results for the period ended 31 August 2014 ("Interim Results"), Freedom reported
achieving approximately 50%, (being R5 020 515), of the 12 month forecast of headline earnings. We
are pleased to report that at 28 February 2015 the Group had achieved earnings ahead of its maiden
forecast and continues to strive to meet forecasts to ensure that Freedom continues on the growth path
outlined in the Group's strategy.
1.4. Expenses
As disclosed in our Interim Results listing expenses and costs relating to the establishment of Freedom
were higher than expected. These were non-recurring costs and all accrued during the interim period.
Furthermore, the operations of Steelpoort Industrial were only fully incorporated into Freedom post
listing and management could only implement cost saving measures subsequent to this. With the
expenses being above anticipated levels, management has initiated processes to contain costs going
forward.
1.5. Net Asset Value ("NAV")
The NAV at 28 February 2015 was 130.45 cents, an increase of 6.06% on the value per the Interim
Results. While gearing has grown on the Statement of Financial Position of the Company (see
Borrowings – para 4), the majority of this funding is being applied to develop Freedom's assets and
unlock value for stakeholders in terms of Freedom's strategy as a capital growth fund.
1.6. Dividends
Freedom will continue with its stated policy of retaining generated cash, which will be applied to
developing the various properties owned by Freedom to ensure capital growth and create shareholder
value. The dividend policy will be reviewed on a continual basis in line with Freedom's strategy of
applying available resources to develop property assets to be held for leasing.
2. OPERATIONS
Freedom has made substantial progress in its operations, thus enabling management to confidently continue
to implement the strategies and growth plans in line with the Company's broad short to medium term goals of
successfully unlocking value for Freedom's stakeholders. In terms of the strategy outlined in the Pre-listing
Statement for the year ending 28 February 2015, all projects have either already commenced or
development plans committed to.
The following paragraphs detail progress on key projects identified by Freedom to ensure its strategic
objectives of income generation and capital growth are sustainable and achieved.
2.1. Steelpoort Industrial
Steelpoort is a mining town in Limpopo Province's platinum belt experiencing rapid development with a
number of new mines being established, making it prime industrial land to own. The scepticism that
surrounds investing in the mining areas, due to the events that unfolded in Rustenburg, is justifiably
allayed when considering that the mining dynamics of Steelpoort are of a different nature. Mining in this
area is highly mechanised and has a primary focus on platinum and chrome production. The number of
mines which have opened in the area over the past two to five year period are testament to the fact that
it is a growing area and is to be recognised as an area in which to invest.
Freedom has, to date, made the following progress at Steelpoort Industrial:
2
- We have developed a further six industrial units, providing in excess of a further 6 306m
gross lettable area ("GLA"). The next two units are set to be completed by 31 May 2015 and
are expected to be fully tenanted by that time as well;
- Freedom has, in answer to market demand, re-sized the units from large units to Midi units
thus enabling the units to be tenanted immediately;
- Ancillary services have been provided, ensuring that tenants are satisfied and as a result
entering into long term leases, ensuring a steady income stream; and
- Certain units have been expanded. An example is unit 1195, for which an additional 400m² of
warehousing facility was created at a rental price of R65/m². This equates to an increased
monthly rental of R26 000 from this unit.
The current rental income ranges between R65/m² and R95/m² with corporate tenants such as Sasol,
Weir Minerals and North Safety. Pieterse, Du Toit and Associates have prepared reports for
submission to council on re-zoning the remaining 6 hectares for light industrial warehousing purposes.
2
This will allow for the construction of a further 36 000m of industrial warehousing. Due to the delays at
council it is now anticipated that this development will commence in September 2015, which only
delays the project by two months, and will be completed towards the end of 2018. The cost of
construction for this phase is anticipated to total R240 million and the expected rental income
generated by Steelpoort Industrial will increase by a projected R34 million per annum.
2.2. Tweefontein Residential
Tweefontein Residential Estate is the residential component of the land owned by the Company in
Steelpoort. Tweefontein Residential will provide Freedom in excess of 4 000 residential development
opportunities in the low to mid income market. Pieterse, Du Toit and Associates have initiated the
higher density re-zoning application. This development is now planned in 12 phases and is still
expected to be completed by 2020.
The demand for residential units is currently between 15 000 and 20 000 units and continually
expanding due to new mines opening in the area. A major mining group operating in the area has
expressed an interest in taking up 2 000 opportunities immediately on completion. The demand by the
existing mines in the area has far exceeded the supply as is currently evidenced by ongoing enquiries
received. This demand will be further underpinned by the new mines to be established in the area.
The agreement with Samancor, whose operations border Freedom's residential land, supports our
residential development, which inevitably makes this land highly valuable and sought after.
Furthermore there are no land claims registered against this property.
2.3. Montana (La Bonne Vie)
The proposed 90 sectional title residential opportunities of one, two and three bedroom units in
Montana, Pretoria are highly accessible and adjacent to the well-known Kolonnade Shopping Centre
and the Zambesi Country Estate. The 3 phase construction plan has been initiated with:
- Phase 1 comprising of 22 units expected to be completed by December 2015 and is estimated
to generate annual rental income of R1 329 600;
- Phase 2 comprising of 31 units is expected to be completed by July 2016 and is estimated to
generate annual rental income of R1 586 400; and
- Phase 3 comprising of 37 units is expected to be completed by April 2016 and is estimated to
generate annual rental income of R1 932 000.
The project development cost is R35 million and will yield in excess of 12% per annum.
2.4. Langebaan
The Langebaan Beach Resort, located in Langebaan in the Western Cape, is a mixed use
2 2
development consisting of 312 022m of zoned residential land, 426 982m of un-zoned residential
land, 8,063m2 of land zoned for commercial use and 21 688m2 for institutional use.
Freedom's proposed development in Langebaan which borders on Saldanha, is extremely exciting for
Freedom as Transnet has plans to spend R10 billion on the expansion of the harbour at Saldanha. This
has led to several development opportunities in the commercial and residential sector. In phase 1 of its
development, Freedom plans to develop 7 000m² of commercial space and negotiations have
commenced with high profile tenants who have a national footprint.
The development will commence on the successful conclusion of lease agreements.
2.5. Miami Village
The Miami Village, situated adjacent to Shelley Point in the St Helena Bay area in the Western Cape
Province, is made up of 261 opportunities, consisting of 164 full title serviced stands and 97 sectional,
bulk serviced stands.
- To date, in excess of 130 sale agreements have been entered into. Total revenues accounted
for in this period are approximately R14 190 000 and cost of sales amounted to R5 030 690.
- Significantly high market demand indicates that the balance of stands held will, in line with
Freedom's strategy to maintain competitive disposal values, be sold in the short term.
2.6. Gevonden
Gevonden comprises of 43 residential units in the medium level segment. It borders the urban edge in
Stellenbosch, making it the last section of land in this very popular Western Cape town that can be
developed.
Stellenbosch has not been heavily affected by the economic crisis, as property development has
continued at a very steady pace over the past few years. The demand can mainly be attributed to the
steady population growth experienced in Stellenbosch and the rest of the Western Cape since 2010.
Bordering the very successful Welgevonden Estate Development on the eastern boundary, our survey
shows that the demand significantly exceeds supply. We are in final stages of concluding a
development agreement with a local, successful developer, in which he undertakes to fully develop the
land at his cost. This includes external as well as internal services after which top structures will be
constructed. Once these units have been completed, Freedom and the developer will split the units
according to input cost, leaving Freedom with an amount of ungeared, very popular rentable units. An
option will also be made available for Freedom to acquire more of these units from the developer at a
reasonable market price, as determined by an independent valuer.
With the demand being high on most of Freedom's development land, we are continuously
investigating innovative financing methods in order to proceed at a much faster pace than traditional
institutional finance normally allows. Good progress has been made in this regard and we anticipate
initiating more of the developments on this basis.
3. PROSPECTS & STRATEGY
The period, since listing on 12 June 2014 to 28 February 2015, has proven to be a challenging one. When
one considers Freedom's strategic objectives, liquidity in trading of Freedom shares increased significantly,
albeit that the share traded at a large discount to its NAV. This was a result of shareholders realising their
opportunity for creating liquidity through trading of Freedom shares.
This has been further compounded by the markets incorrect assessment of the valuation of Freedom. This is
apparent from the current market capitalisation of the fund which infers that the valuation is derived from the
income producing assets and completely discounting the significant portfolio of remaining assets which were
acquired by Freedom for development. It is management's view that this will change as projects are
successfully delivered.
On the positive side new investors have realized the opportunity to invest at the discounted levels, resulting
in an expanding investor base.
In line with Freedom's strategy of organic growth by unlocking the potential of its existing pipeline and
creating further shareholder value, Freedom will also aggressively pursue transactions of an acquisitive
nature.
Freedom is well positioned to operate in the low to mid-tier income sector due to its strategic land
acquisitions. In providing specific rental units, Freedom's vision is to address problems currently facing the
South African market, such as lack of a supply as well as delivery to this specific income range and at the
same time, to grow the Company's income producing assets.
Freedom therefore reiterates its strategic objectives, which have been formulated with the goal of unlocking
and creating further shareholder value:
- To capitalise on the largely ungeared value in the Freedom property portfolio by securing
reasonably priced debt funding which will be utilised to develop a substantial portfolio of
income generating assets. The Company's gearing relative to the net value of its property
portfolio, is less than 10% (assuming the borrowings outlined in para 4 below are fully drawn
down).
- To provide shareholders with an opportunity to participate in significant capital growth
opportunities, as opposed to investing in the REIT, property loan stock and property unit trust
markets, which tend to focus on income distribution rather than capital growth.
- Harnessing the extensive experience of Freedom's management team, as well as having
access to the skills, expertise and market knowledge of selected vendors who hold a
shareholding in Freedom, pursuant to the acquisition agreements in respect of the acquired
properties, and who accordingly have a vested interest in developing the Freedom projects.
- To provide shareholders the prospect of participating in a diverse portfolio of assets, with a
strong weighting in residential properties, which are forecast to generate significant rental
incomes as access for investors to the residential property industry in South Africa is limited.
4. BORROWINGS
Freedom has secured facilities with Nedbank Limited ("Nedbank") to provide term funding to Kadoma
totalling R88 million, subject to agreed drawdowns and completion of units. These term facilities will be
applied to the Steelpoort Industrial expansion and further development within the Group, including
Tweefontein Residential (see Operations – para 2.2). The gearing within the Group, once the new term
facilities are in place and fully drawn down, will total R120 million (granted by Nedbank). The Nedbank
facilities are secured by first mortgage bonds over the developed Steelpoort Industrial properties and a
surety provided by Freedom. Additional borrowings to the tune of R2 100 000 have been incurred for the
purposes of expanding one stand at Steelpoort Industrial Park. This will generate an approximate initial
additional R100 000 in monthly rental revenue through a 60 month lease agreement being entered into.
5. CORPORATE GOVERNANCE
The board is fully committed to the principles of the Code of Corporate Practices and Conduct as set out in
King III. The board acknowledges its responsibility in ensuring that the Company acts with integrity and
fairness. As such they are continually monitoring and investigating methods of improving systems and
controls in order to ensure that stakeholder opportunities are maximised.
6. HEALTH & SAFETY
Across all aspects of operations Freedom strives to adhere to the standards of best practice and upholds
health and safety as one of our highest values. This includes the health and safety policies and procedures
set forth to ensure and maintain the welfare of all employees and development contractors. We are delighted
to report another consecutive period without injuries.
7. SUBSEQUENT EVENTS
There have been no material events subsequent to 28 February 2015 to report. In the normal course of
business, a number of the stands for which sale agreements have been concluded at Miami Village, have
now been transferred after various delays outside of Freedom's control. This will be reflected in the Group's
revenue stream in the next financial period.
8. CHANGES TO THE BOARD
Mr Richard Eaton has resigned as the chief financial officer and the financial director of the Company with
effect from 17 October 2014. Mr Jan Francois (Franky) Pretorius was appointed as the new chief financial
officer and financial director, with effect from the same date.
9. BASIS OF PREPARATION
The condensed consolidated financial statements for the year ended 28 February 2015 have been prepared
in accordance with the requirements of the JSE Limited Listings Requirements for provisional reports and the
requirements of the Companies Act of South Africa. The Listings Requirements require provisional reports to
be prepared in accordance with the framework concepts, the measurement and recognition requirements of
International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting
Standards Council and also, as a minimum requirement, contain the information required by IAS 34 Interim
Financial Reporting. The accounting policies applied in the preparation of the condensed consolidated
financial statements are in terms of IFRS. The directors take full responsibility for the preparation of the
provisional condensed consolidated results.
These provisional condensed results have been prepared under the historical cost convention except for
investment properties and certain financial instruments which are measured at fair value. The fair value of
investment properties are determined with reference to the external valuations dated 28 February 2015,
prepared by the independent property valuer appointed to value the properties owned by the group.
These provisional condensed results were prepared under the supervision of JF Pretorius, in his capacity as
the Chief Financial Officer of the Group.
10. ACCOUNTING POLICIES
The accounting policies applied by the Group are consistent with those applied in the comparative financial
periods, except for the adoption of improved, revised or new standards and interpretations. The aggregate
effect of these changes in respect of the year ended 28 February 2015 is Rnil.
11. AUDITORS
The provisional condensed consolidated results of Freedom Property Fund Limited for the year ended 28
February 2015 have been reviewed by the Company's auditors, RSM Betty & Dickson (Johannesburg), and
their review report is available for inspection at the Company's registered office. RSM Betty & Dickson
(Johannesburg) state that their review was conducted in accordance with the International Standards on
Review Engagements 2410 (ISRE 2410), Review of HIstorical Information Performed by the Independent
Auditor of the Entity, which applies to a review of provisional condensed consolidated financial information,
and have expressed an unmodified conclusion on the provisional condensed consolidated financial results.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2015
2015 2014
Notes R R
Revenue 1 42 779 795 -
Cost of sales (9 413 880) -
Gross Profit 33 365 915 -
Other income 17 898 097 -
Operating expenses (26 867 846) (4 657 688)
Profit (Loss) from Operations 24 396 166 (4 657 688)
Investment revenue 31 903 -
Gain on bargain purchase 2 314 194 519 -
Fair value adjustment 3 235 805 060 -
Finance costs (4 435 941) -
Profit (Loss) before taxation 569 991 706 (4 657 688)
Taxation (48 926 654) -
Total comprehensive income (Loss) for the
year 4 521 065 052 (4 657 688)
Earnings per share in cents 58.61
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 28 FEBRUARY 2015
2015 2014
Notes R R
ASSETS
Non - current assets 1 561 038 125 -
Investment Property 5 1 556 382 000 -
Property, Plant and equipment 1 137 124 -
Operating lease asset 1 085 808 -
Other Investments 2 433 193 -
Current assets 143 355 291 566 632
Inventories 6 87 693 239 -
Trade and other receivables 54 325 687 551 180
Cash and cash equivalents 1 336 365 15 452
Total assets 1 704 393 416 566 632
EQUITY AND LIABILITIES
Equity 1 339 737 751 (4 643 133)
Stated capital 823 330 832 15 000
Reserves - 12 895 000
Retained income / (Accumulated loss) 516 406 919 (17 553 133)
Liabilities
Non - current liabilities 327 059 556 -
Other financial liabilities 7 82 290 865 -
Deferred tax 8 244 768 691 -
Current liabilities 37 596 109 5 209 765
Other financial liabilities 3 167 176 1 780
Current tax payable 5 385 341 -
Trade and other payables 19 699 941 5 207 985
Provisions 156 106 -
Bank overdraft 9 187 545 -
Total equities and liabilities 1 704 393 416 566 632
Total number of shares in issue 1 027 029 031
NAV per share (cents) 130.45
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2015
2015 2014
Notes R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash (utilised in) / generated from operations (37 284 075) 39 179
Interest income 31 903 -
Finance costs (4 435 941) -
Tax paid (149 290) -
Net cash from operating activities (41 837 403) 39 179
CASH FLOWS FROM INVESTING ACTIVITIES 9
Purchase of property plant and equipment (866 894) -
Purchase of investment property (163 946 292) -
Proceeds from sale of investment property 1 000 000 -
Proceeds from sale of subsidiary 12 000 000 -
Investment in subsidiaries (719 369 654) -
Purchase of other asset (2 433 193) -
Net cash from investing activities (873 616 033) -
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on share issue 823 315 832 -
Proceeds from other financial liabilities 84 270 972 -
Repayment of shareholder loans - (24 320)
Net cash from financing activities 907 586 804 (24 320)
Total cash movement (7 866 632) 14 859
Cash at the beginning of the year 15 452 593
Total cash at the end of the year (7 851 180) 15 452
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2015
Share Based Payment Retained income /
Stated capital Reserve (Accumulated loss) Total Equity
R R R R
Balance as at 01 March 2013 15 000 12 895 000 (12 895 445) 14 555
Loss for the year - - (4 657 688) (4 657 688)
Balance as at 01 March 2014 15 000 12 895 000 (17 553 133) (4 643 133)
Profit for the year - - 521 065 052 521 065 052
Issue of shares 882 075 382 - - 882 075 382
Purchase of own/treasury shares (58 759 550) - - (58 759 550)
Transfer between reserves - (12 895 000) 12 895 000 -
Total contributions by and distributions to
owners of company recognised directly in
equity 823 315 832 (12 895 000) 12 895 000 823 315 832
Balance as at 28 February 2015 823 330 832 - 516 406 919 1 339 737 751
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
1. Revenue – comprises of the following:
2015 2014
R R
Investment property income 19 059 500 -
Development property sales income 23 720 295 -
42 779 795 -
2. Gain on bargain purchase – relates to the acquisition of the 6 property owning subsidiaries acquired by
Freedom, as set out in the Pre-listing Statement and supplementary circular dated 5 June 2014 ("Listing
Documents"). The fair value of the properties owned in the acquired subsidiaries (as valued by the
independent valuer dated 28 February 2015) was higher than the purchase consideration paid by Freedom.
3. Fair value adjustment – relates to the fair value of properties acquired by Freedom, as set out in the Listing
Documents. The fair value of the properties acquired (as valued by the independent valuer dated 28
February 2015) was higher than the purchase consideration paid by Freedom.
4. Headline Earnings
2015
R
Total comprehensive income 521 065 052
Fair value adjustment (235 805 060)
Gain on bargain purchase (314 194 519)
Gain on disposal of subsidiary (3 589 500)
Profit on sale of investment property (339 713)
Tax effect of above adjustments 46 136 548
Headline earnings 13 272 808
Shares in issue 1 027 029 031
Weighted average no of shares in issue 889 037 602
Earnings per share (in cents) 58.61
Headline earnings per share (in cents) 1.49
Diluted earnings per share (in cents) 58.61
Diluted headline earnings per share (in cents) 1.49
5. Investment property – is the fair value of the properties acquired by Freedom as set out in the Listing
Documents, which will be developed and held by Freedom as income generating property assets.
6. Inventories – are the properties acquired in Langebaan (see paragraph 2.4) and Miami Village (see
paragraph 2.5) by Freedom which will be developed and sold, as set out in the Listing Documents.
7. Other financial liabilities – This relates to the long term portion of the mortgage bond which was taken over
in the acquisition of Stellenbosch Industrial (held through Passion Way Props Proprietary Limited) as well as
the long term portion of the Nedbank facilities drawn down to finance the expansion at Steelpoort.
8. Deferred taxation – relates to the fair value adjustments of the acquisition of the properties and property
owning subsidiaries acquired by Freedom as set out in the Listing Documents.
9. Net cash flows from financing and investment activities – a total of R882 075 382 Freedom ordinary
shares were issued by Freedom to acquire the investment properties and property owning subsidiaries
(purchase consideration and related costs).
CONDENSED CONSOLIDATED SEGMENT REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2015
The Group has two reportable segments, as described below. The segments offer different types of revenue
income and are managed separately to enable the Group to adequately monitor the various risk profiles. For
each of these segments, the Group's chief executive officer reviews internal management reports on a monthly
basis. The following summary describes each of the Group's reportable segments:
- Property Rental Income; and
- Development Property Sales.
Other operations include the Group's administrative and finance costs. None of these segments meets any of the
quantitative thresholds for determining reportable segments in the current year. Information regarding the results
of each reportable segment is included below. No segment results are disclosed for the prior period as the Group
only commenced these operations on listing in the current year.
OPERATING SEGMENTS
Statement of comprehensive Income – 28 February 2015
Development Property
Rental Income Sales Total Operating Segments
Segment revenue 19 059 500 23 720 295 42 779 795
Expenditure (13 647 244) (10 813 527) (24 460 771)
Segment Results 5 412 256 12 906 768 18 319 024
Statement of Financial Position – 28 February 2015
Development Property
Rental Income Sales Total Operating Segments
Non-Current Assets
Investment properties 1 556 382 000 - 1 556 382 000
Operating lease asset 1 085 808 - 1 085 808
Current Assets - -
Trade and other receivables 1 699 413 23 778 847 25 478 260
Inventory - 87 693 239 87 693 239
Segment Assets 1 559 167 221 111 472 086 1 670 639 307
Non-Current Liabilities
Deferred tax 244 768 691 - 244 768 691
Other financial liabilities 82 290 865 - 82 290 865
Current Liabilities - - -
Trade and other payables 15 956 601 2 253 914 18 210 515
Other financial liabilities 3 167 176 - 3 167 176
Segment Liabilities 346 183 333 2 253 914 348 437 247
Reconciliations of reportable segment revenues, profit or loss, assets and liabilities and other material items :
Revenues
Total Revenue for reportable segments 42 779 795
Profit or loss for reportable segments 18 319 024
Other profit or loss
Unallocated Amounts
Operating Expenses (11 820 956)
Finance Costs (4 435 941)
Other Income 17 898 097
Investment Revenue 31 903
Gain on bargain purchase 314 194 519
Fair value adjustment 235 805 060
Profit / (Loss) before taxation 569 991 706
The following assets and liabilities are not allocated to business segments:
Assets
Property, plant and equipment 1 137 124
Other financial assets 2 433 193
Trade and other receivables 28 847 427
Cash and cash equivalents 1 336 365
Total unallocated assets 33 754 109
Liabilities
Bank overdraft 9 187 545
Current tax payable 5 385 341
Trade and other payables 1 645 532
Total unallocated liabilities 16 218 418
By order of the Board
PE Burton NT Govender
Chairman Chief Executive Officer
Monday, 25 May 2015
COMPANY INFORMATION Company Secretary: Statucor Proprietary Limited
Freedom Property Fund Limited Registered Office: 24 Peter Place, Lyme Park, Sandton, 2196
(Incorporated in the Republic of South Africa) Postal Address: PO Box 752, Cramerview, 2060
(Registration No. 2012/129186/06) Transfer Secretaries: Computershare Investor Services Proprietary
Share code: FDP ISIN: ZAE000185260 Limited, Ground Floor, 70 Marshall Street,
("Freedom" or "the Company" or "the Group") Johannesburg 2001 (PO Box 61051, Marshalltown, 2107)
Directors: PE Burton#* (Chairman); NT Govender (Chief Executive Sponsor: PSG Capital Proprietary Limited, 1st Floor, Ou Kollege
Officer); JF Pretorius (Chief Financial Officer); RD Eaton#*; BM Building,
Molefi#*; SB Rule*; WH Rule*, WB Stocks#* (#Independent *Non- 35 Kerk Street, Stellenbosch 7600
executive)
Date: 25/05/2015 08:59:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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