Wrap Text
Unaudited consolidated interim financial statements
for the six months ended 31 December 2015
Delta Africa Property Holdings Limited
(Registered by continuation in the Republic of Mauritius)
(Registration number 128881 C1/GBL)
JSE share code: DLA
SEM share code: DEL.N0000
ISIN: MU0473N00010
("Delta Africa" or "Company")
Unaudited consolidated interim financial statements
for the six months ended 31 December 2015 (the "financial statements")
HIGHLIGHTS
Dividend of 6.17 US$c per share, an
increase from last six months of 32.8%
Capital of US$10.4 raised at US$1.70 per share
Yield accretive assets of US$51.3 million
JSE Dividend yield of 10.6% (annualised)
SEM Dividend yield of 7.1% (annualised)
Operating costs dropped to 17.1% from 25.0%
DIRECTORS' COMMENTARY
Nature of the business
Delta Africa is a pan African property income fund focusing on African real estate assets (excluding
South Africa), underpinned by US Dollar-denominated long-term leases with high quality tenants
delivering sustainable income.
Listed in July 2014, the Company holds dual primary listings on the Stock Exchange of Mauritius
("SEM") as well as the main board of the Johannesburg Stock Exchange ("JSE").
In its first year of trading, the Company and its subsidiaries ("Group") successfully bedded down its
footprint in Africa through the acquisition of three properties in Mozambique and one property in Morocco.
Subsequent to the Group's maiden results, it has maintained momentum in its geographical expansion
strategy by acquiring a portfolio of assets, the salient highlights of which are as follows:
Acquisitions during the reporting period
- Zimpeto Square, a 4,764m(2) retail mall in Maputo Mozambique, which transferred on 15 October
2015 for a consideration of US$10.6 million;
- A 50% interest in the Makuba Mall, a 28,235m(2) retail mall in Kitwe, Zambia on 1 December 2015
for a net purchase price of US$17.5 million (made up of the asset value of US$31.5 less debt of
US$14 million); and
- A 50% interest in the Kafubu Mall, an 11,964m(2) retail mall in Ndola, Zambia on 1 December 2015 for
a net purchase price of US$4.1 million (made up of the asset value of US$9.1 million less debt of
US$4 million).
Acquisitions post period end
- Barclays House, a 7,700m(2) commercial office building in Ebene, Mauritius for a consideration of
US$13.5 million, which transferred on or about 23 February 2016;
- The Vale accommodation compound in Tete, Mozambique, consisting of 83 villas and 40 apartments
with a net purchase price including of US$17 million (made up of the asset value of US$33.1 million less debt
of US$16.5 million). Anticipated transfer date is 31 March 2016;
- The Bollore/Plexus warehousing compound in Pemba, Mozambique, 6,374m(2) warehouse for
US$4.3 million (made up of US$8.5 million less debt of US$4.3 million). Anticipated transfer date
is 29 February 2016;
- The Buffalo Mall in Naivasha, Kenya, a 6,167m(2) warehouse for US$4.1 million (made up of
US$6.1 million less debt of US$2.0 million). This is anticipated to transfer before 31 March 2016; and
- The Wings Office Towers in Lagos, Nigeria, a 27,812m(2) office complex for US$73.2 million (made up
of US$110.3 million less debt of US$37.1 million). The property will transfer on practical completion,
estimated on 1 September 2016.
The Group's strategy remains to expand its property portfolio throughout targeted countries in Africa
with assets that will provide sustainable long-term, US Dollar-based income from high quality tenants
with a core focus on protecting shareholder value and dividend yield.
REVIEW
The Board approved and declared its third distribution of US$ 6.17 cents per share for the six month
period ended 31 December 2015, an increase of 32.8% over the six months ended 30 June 2015. This
represents an annualised dividend yield of 10.6% on the JSE and 7.1% on the SEM(1).
(1) Based on the JSE price of ZAR18.50 and ZAR:US$ rate of exchange of 15.85; and the SEM trading price of US$1.70.
On 22 July 2015, the Group finalised a medium-term finance agreement with Standard Bank of South
Africa, with the proceeds of US$38.0 million being utilised to settle the Standard Bank Mozambique
bridging facility of US$24.3 million that was in place at year end for the acquisition of the Hollard
Building and the Vodacom Building (with the remainder of the funds being utilised to secure the
current pipeline of acquisitions in Mozambique).
On 11 February 2016, Investec Bank dispersed a long-term facility of US$50.9 million to Freedom
Property Fund in Morocco. The loan was the first entry into the Moroccan market by Investec Bank
and has now set the platform for additional funding for future projects in Morocco. The loan has
been denominated in Euros (60%) and US Dollars (40%) (based on the weighting of the Moroccan
Dirham), while securing the lower cost of borrowings attached to the hard currency versus the higher
Moroccan Dirham-based lending rate. The proceeds of the loan have been utilised to settle the vendor
loan which arose on the acquisition of the Moroccan property, resulting in a significant reduction to
the 8.9% borrowing costs associated with the vendor loan to the all-in interest rate of 5.52% (of which
70% is a fixed interest rate).
The Group's property loan to value is currently 44.7%, down from the 48.3% reported in June 2015.
The total loan to value including the equity bridge facilities with AfrAsia Bank and Standard Bank
South Africa is 53.8%.
Asset acquisitions and geographical footprint in Africa
During the six months to December 2015, the Group has transferred yield-enhancing assets to the
value of US$51.3 million and secured an additional US$55.2 million of assets due to transfer before
the end of March 2016. The expansion has increased the Group's targeted African footprint with asset
acquisitions in both Zambia and Mauritius.
The portfolio composition is now as follows:
GROSS ASSET VALUE BY REGION
Transferred assets
Zambia 15%
Mozambique 45%
Morocco 38%
Mauritius 2%
Including assets acquisitions
Nigeria 26%
Zambia 9%
Mozambique 37%
Morocco 23%
Mauritius 3%
Kenya 1%
GROSS ASSET VALUE BY SECTOR
Transferred assets
Retail 58%
Office 42%
Including assets acquisitions
Corporate Accommodation 8%
Light Industrial 2%
Retail 37%
Office 54%
Details of acquisitions transferred by 31 December 2015
Zimpeto Square, which transferred to the Group in October 2015, is a 4,764m(2) strip mall in Maputo,
Mozambique. The mall has achieved exceptional trading densities, with no vacancies and minimal
arrears. The gross asset value of the centre is US$11.0 million as at 31 December 2015 (independently
valued by JLL).
The 50% stake in Makuba Mall in Kitwe, Zambia transferred on 1 December 2015. The mall provides
28,235m(2) of GLA and is valued at US$63.1 million (US$31.5 million attributable to the Group). The mall
is anchored by Shoprite, Game and Pick n Pay. Other notable tenants include Mr Price, Woolworths,
Spur, Barclays and FNB.
Kafubu Mall based in Ndola, Zambia provides 11,964m(2) of GLA, is valued at US$17.5 million and is
anchored by Shoprite. Other notable tenants include Spur and OK Furniture. The gross asset value of
the Group's 50% stake in the mall is US$8.8 million.
Both Zambian malls are the dominant retail offerings in their respective catchment areas and are
effectively managed by Heriot Properties. The extensive property management experience of Heriot
Properties in Zambia has resulted in the malls being very well managed, with negligible vacancies and
arrears.
Details of acquisitions currently being transferred
The Barclays House Building in Ebene, Mauritius transferred on or about 23 February 2016. The building houses
the corporate head office for Barclays in Mauritius and has 12 years remaining on the lease. The 7,700m(2)
building is valued at Rs490 million (approximately US$14 million) and was acquired for Rs470 million
(approximately US$13.5 million). Although the leases are denominated in Mauritian Rupees, the Group
will hedge the currency exposure to the US$ for a period of three years, the cost of which has been
factored into the initial acquisition yield.
The Vale accommodation compound in Tete, Mozambique is the premier accommodation offering
in the area and provides 83 x three-bedroom units as well as 40 x two-bedroom apartments. The
compound includes sporting and entertainment facilities for the tenants. Vale and Barloworld fully
occupy all the units on five-year leases. The gross asset value of the compound has recently been
independently valued at US$35.7 million. The transfer of the property, at a cost US$33.1 million, will
conclude on the date of subdivision of the property, however the effective date of the transaction is
1 December 2015.
The Bollore/Plexus warehouse compound in Pemba, Mozambique spanning 6,374m(2), provides seven
individual warehouses and office space to tenants. In addition to meeting Delta's requirements for
US$-based leases with strong counter parties, this property's location, being at the base of the
Anadarko/ENI pier in Pemba harbour, provides the Group with the opportunity to redevelop the site
at a later stage. The acquisition price of the property is US$8.5 million (independently valued by JLL)
and is expected to transfer by mid-March 2016.
The Phase I of the Buffalo Mall in Naivasha, Kenya is a 6,167m(2) retail, commercial and entertainment
centre development, anchored by Tuskys. The 45.5% stake in the asset provides the Group with its
initial acquisition in the Kenyan market. The asset has recently been valued at US$13.4 million, which
includes the land and development rights for Phase II of the mall, with a maximum of 14,000m 2 of
additional GLA.
The Wings Office Towers in Lagos, Nigeria is a 27,812m(2) twin towered office complex. The asset is
expected transfer on 1 September 2016 (being the estimated date of completion). The building is
anchored by Oando Oil PLC, with the balance of the property covered by a two-year rental guarantee
by the seller.
Results
Profit for the six months to 31 December 2015 amounted to US$7.8 million, compared to the
US$2.2 million loss for the comparative six months to 31 December 2014, and US$2.3 million profit for
the previous six month period.
Net operating expenses as a percentage of revenue has decreased to 17.1% for the six months to
31 December 2015 from the 25.0% reported in the previous financial year, with the decline being
attributed to acquisitions of triple net lease buildings that were acquired at the end of the 2015
financial year.
The weighted average cost of debt is currently at 6.99% (versus 6.94% at 30 June 2015). The increase
is attributable to the interest rate ramp-up on the recently settled vendor loan on the Anfa Place
Shopping Centre, this facility has been refinanced with Investec Bank at an effective rate of 5.52%
(vendor loan currently at 8.9%). Finance for new acquisitions have been secured at an all-in rate of
between 5% and 5.65% (with a minimum of 70% of the interest costs being fixed).
The results include the impact in the slide in the Mozambique Meticais, which has depreciated 23%
against the US Dollar from 38.05 in June 2015 to 46.88 by the end of December 2015. Although the
movement in the currency does not impact operating profits (as all leases and borrowing costs are
US$ based), it does provide for large revaluation movement as can be seen in the revaluation of the
properties, unrealised foreign exchange movements and the foreign currency translation reserve, with
the latter impacting on the NAV per share by 13.55 US$ cents per share – without this movement, the
NAV per share would be 175.39 US$ cents per share.
Existing portfolio performance
The Anadarko Building in Mozambique is operating as expected and remains 100% occupied. The
Anadarko Phase II Building's development plans have now obtained the required local authority approvals
and the terms of the lease with Anadarko have been agreed. Hodari Properties are expected to commence
the development in mid-2016. In addition to the net rental income to be generated on Phase II, the Group
will share in the development fee without taking any development risk. The development fee is based
on the Group's existing interest in the land and the ability to provide backing for the required financing
facilities. The Group has invoiced fees amounting to US$0.6 million to the developer to date which is
disclosed under other income.
The Vodacom Building and Hollard Building, which transferred in April 2015 and May 2015 respectively,
have now been bedded down and are operating beyond expectations, with a number of tenants requesting
lease renewals long before the current lease expiry. Both buildings remain fully occupied and arrears are
insignificant.
Anfa Place Shopping Centre in Morocco continues to perform within expectations. The emphasis on
collections has produced positive results and arrears have improved significantly over the last three
months. The intense scrutiny on late payments has, however, resulted in the eviction of two small tenants
in October 2015, which has increased the overall vacancies from 7.64% to 8.13%.
The recent addition of McDonalds and the first of new Turkish fashion brands, Exist, are part of the planned
enhancements to the tenant mix that will gain momentum over the coming year. A project is being formulated
to increase the space efficiency and unlock additional retail GLA that will enable further strengthening of
the tenant mix that appeals to the wealthy primary catchment of Anfa. The plans include entertainment
facilities as part of the centre's popular food court. The Four Seasons Hotel, which is adjacent to the centre,
opened on 28 October 2015 and this has seen further uplift in the increasing footfall.
The restaurants and vacancies within the street retail section of the centre will no longer be hindered by
the hotel construction site and the Group is now expecting significant interest in this area of the complex.
The Group has recently appointed Aswaq Management and Services ("AMS") as the property managers
to replace Commercial Real Estate Service ("CBRE"). Their local knowledge and insight of the Moroccan
retail market combined with their extensive retail experience in the UAE will be paramount in maximising
the project plans for the centre and reducing vacancies. New Turkish brands that are trading extremely
well in Morocco such as LC Waikiki, Defacto and Koton have expressed strong interest and negotiations
are being concluded to introduce these exciting brand offerings to the centre. In addition, we have interest
from quality food tenants, Laduree, Fauchon and Frederic Cassell whom we are aiming to accommodate.
The Moroccan Dirham ("MAD"), being the functional currency of the Moroccan investment, has remained
relatively stable against the US Dollar, moving from 9.78 at year end its current levels of 9.72 to the
US Dollar.
SUBSEQUENT EVENTS
Shareholders are referred to the announcement dated 17 November 2015, released on the news service of
the JSE and SEM respectively informing the market that Delta Africa and The Pivotal Fund ("Pivotal"), a
JSE-listed development focused investment fund, formed a new strategic relationship to be named Mara
Delta Property Holdings Limited ("Mara Delta").
In terms of the framework agreement entered into between Delta Africa and Pivotal, Delta Africa will
acquire Pivotal's entire 45.5% shareholding in Buffalo Mall Naivasha Limited, a Kenyan retail, commercial
and entertainment centre development. The purchase consideration amounts to US$4.1 million and will
be settled through the issue of new Delta Africa ordinary shares to Pivotal at US$1.70 a share. Transfer is
expected to take place in March 2016.
In addition, Delta Africa will also acquire Pivotal's entire shareholding in SB Wings Development Limited
("SB Wings"), a Mauritian company with a 37.1% shareholding in Oando Wings Development Limited
("Oando Wings") as its sole asset. Oando Wings is currently undertaking an office development in Lagos,
Nigeria. The transfer of the interest in SB Wings is due to take place on completion of the development,
expected in September 2016.
The purchase consideration, including all amounts owed by SB Wings to Pivotal, amounts to US$73.2 million
and will also be settled through the issue of new Delta Africa ordinary shares to Pivotal.
The framework agreement will result in Delta Africa Property Holdings changing its name to Mara
Delta Property Holdings, retaining its two primary listings on the JSE and the SEM. The existing asset
management agreement between Delta Africa and Freedom Asset Management Limited will also be
terminated in favour of the internalisation of Delta Africa's asset management function and associated
management fee.
Pivotal will commit to the US Dollar equivalent of R300 million to future capital raises as and when
required in order to facilitate the equity funding of future acquisitions.
As part of the agreement, Abland Africa Limited, Carlisle Property Holdings Limited and the Mara Group
will be appointed as promoters to source investment and development opportunities for Mara Delta
across the continent.
Delta and Pivotal will add further depth and experience to the board of Mara Delta with the intention
to appoint Jackie van Niekerk, Dave Savage and Ashish J. Thakkar as non-executive directors after the
closing date. Peter Todd will remain as the lead independent non-executive director to the Board, and will
be joined by Ian Chambers as an independent non-executive director.
The conclusion of the strategic framework agreement is subject to inter alia, Delta Africa shareholder
approval. Once concluded, Pivotal will be a substantial shareholder with Board representation in Delta
Africa, subject to shareholders and regulatory approvals.
Other than the items mentioned previously, no material events have occurred since the reporting date.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited for Audited Unaudited for
the six months for the the six months
ended year ended ended
31 December 30 June 31 December
2015 2015 2014
$ $ $
Gross rental income 10,389,958 13,918,198 6,836,536
Straight-line rental income accrual 1,652,597 2,622,295 916,000
Revenue 12,042,555 16,540,493 7,752,536
Income from associates 279,115 – –
Property operating expenses (1,774,809) (3,477,760) (1,670,954)
Net property income 10,546,861 13,062,733 6,081,582
Other income 600,005 384,061 66,247
Administrative expenses (1,825,914) (1,711,295) (572,429)
Profit from operations 9,320,952 11,735,499 5,575,400
Acquisition fees (758,413) (3,291,940) (2,487,382)
Acquisition fees – Asset management fees (318,073) (2,098,563)
Acquisition fees – Other (440,340) (1,193,377) (2,487,382)
Set-up costs – (829,279) (524,379)
Fair value adjustment on investment property 16,573,662 4,560,458 5,333,350
Fair value adjustment on financial instruments (193,869) – –
Gain from bargain purchase – 3,504,523
Unrealised foreign currency loss (14,516,303) (11,803,314) (6,372,955)
Realised foreign currency gain 2,849,750 551,853 516,209
Profit before interest and taxation 13,275,779 4,427,800 2,040,244
Interest income (34,446) 91,477 18,651
Finance costs (5,291,586) (3,640,293) (1,700,754)
Profit for the period before tax 7,949,747 878,984 358,140
Current tax expense (267,947) (78,542) (530,018)
Deferred tax expense 79,533 (617,062) (1,983,719)
Profit/(loss) for the period after tax 7,761,333 183,380 (2,155,597)
Loss on translation of functional currency (10,045,316) (838,254) 735,801
Other comprehensive income – – –
Total comprehensive loss (2,283,983) (654,874) (1,419,796)
Reconciliation of basic earnings and headline
earnings
Basic earnings 7,761,333 183,380 (2,155,597)
Less: Fair value adjustments on investment property
(net of deferred taxation) (16,573,662) (4,560,458) (3,632,724)
Gain from bargain purchase – (3,504,523) –
Headline loss attributable to shareholders (8,812,329) (7,881,601) (5,788,321)
Less:
Straight-line lease income accrual (net of deferred tax) (1,670,091) (1,815,090) (632,908)
Unrealised foreign currency revaluations 14,516,303 11,803,314 6,372,955
Fair value adjustments on financial instruments
(net of deferred taxation) 131,831 – –
Acquisition costs on investment properties 758,413 3,626,253 2,487,382
Set-up costs – 829,279 524,379
Profits retained (1,651) (175,538) –
Distributable earnings attributable to shareholders 4,922,476 6,386,617 2,963,487
Number of shares in issue 79,780,817 73,656,447 44,656,447
Weighted average number of shares* 73,937,102 54,717,865 20,071,041
Earnings per share
Basic and diluted profit/(loss) per share (cents) 10.50 0.39 (10.74)
Headline diluted loss earnings per share (cents) (11.92) (16.73) (28.84)
Distribution per share
Distribution per share (cents) – interim 6.17 6.64 6.64
Distribution per share (cents) – final
(declared after 30 June) – 4.65 –
Distribution per share (cents) – full year 6.17 11.28 6.64
NOTES
The Group is required to publish financial results for the six months ended 31 December 2015 in accordance with
the Listing Rule 12.19 of the SEM. Accordingly, this announcement presents the financial results of the Group in
respect of the six month period from 1 July 2015 to 31 December 2015 and six month period from 1 July 2014 to
31 December 2014.
The accounting policies which have been applied are consistent with those used in the preparation of the audited
financial statements for the period ended 30 June 2015.
The financial statements for the six months ended 31 December 2015 have been prepared in accordance with the
measurement and recognition requirements of IFRS, SAICA Financial Reporting Guides as issued by the Accounting
Practices Committee, Financial Pronouncements as issued by the Financial Reporting Standards Council, the
requirements of IAS 34: Interim Financial Reporting, the SEM Listing Rules, the JSE Listings Requirements and the
Securities Act of Mauritius 2005.
The financial statements have not been reviewed or reported on by the Group's external auditors.
These financial statements were approved by the Board on 18 February 2016.
Copies of the financial statements and the Statement of direct and indirect interests of each officer of the Group,
pursuant to rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules of Mauritius 2007, are
available free of charge, upon request at the Company's registered address.
This communiqué is issued pursuant to SEM Listing Rule 11.3, 12.20 and section 88 of the Securities Act of Mauritius
2005. The Board accepts full responsibility for the accuracy of the information contained in these financial
statements. The directors are not aware of any matters or circumstances arising subsequent to the period ended
31 December 2015 that require any additional disclosure or adjustment to the financial statements.
Declaration of final dividend
Shareholders are advised that dividend number 3 of US$6.17000 cents per share for the six months ended
31 December 2015 has been approved and declared. The source of the cash dividend is from rental income.
Salient dates and times
for shareholders on the sa register
2016
Announcement of results of cash dividend on JSE and SEM Thursday, 18 February 2016
Dividend finalisation announcement released on SENS by no later than 11:00 on Friday, 26 February 2016
Last date to trade on the JSE in order to be eligible for the cash dividend on Friday, 4 March 2016
Shares commence trading ex cash divided on the JSE on Monday, 7 March 2016
Record date for shareholders recorded on the SA register Friday, 11 March 2016
Payment date of Dividend Monday, 14 March 2016
Notes:
1. All dates and times quoted above are local dates and times in South Africa. The above dates and times are subject to change. Any
changes will be released on SENS.
2. No dematerialisation or rematerialisation of share certificates nor transfer of shares between sub-registers in Mauritius and South
Africa may take place between Monday, 7 March 2016 and Friday, 11 March 2016, both days inclusive.
3. Shareholders on the South African sub-register will receive dividends in South African Rand, based on the exchange rate to be obtained
by the Company on or before Friday, 26 February 2016. A further announcement in this regard will be made on or before Friday,
26 February 2016.
For shareholders on the Mauritian register
Announcement of results of cash dividend on JSE and SEM Thursday, 18 February 2016
Last date to trade on the SEM in order to be eligible for the cash dividend on Tuesday, 8 March 2016
Shares commence trading ex cash divided on the SEM on Wednesday, 9 March 2016
Record date for shareholders recorded on the Mauritian register Friday, 11 March 2016
Payment date of Dividend, on or about Monday, 14 March 2016
Notes:
1. All dates and times quoted above are local dates and times in Mauritius. The above dates and times are subject to change. Any changes
will be released on the SEM website.
2. No dematerialisation or rematerialisation of share certificates nor transfer of shares between sub-registers in Mauritius and South
Africa may take place between Monday, 7 March 2016 and Friday, 11 March 2016, both days inclusive.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited for Unaudited for
the six months Audited the six months
ended for the ended
31 December period ended 31 December
2015 30 June 2015 2014
$ $ $
Assets
Non–current assets
Investment property 220,665,113 210,390,631 150,405,893
Fair value of property portfolio 216,711,912 207,768,336 149,489,893
Straight-line rental income accrual 3,953,201 2,622,295 916,000
Property, plant and equipment 111,483 96,512 81,018
Intangible assets 28,092 8,774 –
Investment in associates 40,320,074 – –
Goodwill – – 5,205,188
Related-party loans 163,740 11,778 3,274,558
Deferred tax 2,032,063 190,143 –
Total non–current assets 263,320,565 210,697,838 158,966,657
Current assets
Trade and other receivables 15,189,306 18,777,373 9,504,278
Cash and cash equivalents 18,151,211 6,565,282 1,843,558
Current tax receivable 198,521
Total current assets 33,340,517 25,342,655 11,347,837
Total assets 296,859,603 236,040,493 170,314,494
Equity and liabilities
Total equity attributable to equity holders
Share capital 138,320,299 127,958,794 87,643,412
Foreign currency translation reserve (10,830,705) (785,389) 788,666
Retained earnings/(loss) 1,577,519 (2,760,583) (2,136,125)
Total equity attributable to equity holders 129,067,113 124,412,822 86,295,953
Liabilities
Non–current liabilities
Interest–bearing borrowings 49,693,467 10,490,966 74,417,905
Derivative instruments 190,997 – –
Deferred tax – 807,205 7,974,546
Total non–current liabilities 49,884,464 11,298,171 82,392,451
Current liabilities
Interest–bearing borrowings 108,917,548 91,165,629 –
Trade and other payables 8,890,582 8,671,831 1,104,151
Withholding tax payable 99,894 11,893 –
Current tax payable – 137,756 521,938
Cash and cash equivalents – 342,391 –
Total current liabilities 117,709,503 100,329,500 1,626,090
Total liabilities 167,593,967 111,627,671 84,018,540
Total equity and liabilities 296,859,603 236,040,493 170,314,494
Net asset value per share (cents) 161.78 168.91 193.24
Net asset value per share (excluding deferred
taxation) (cents) 161.78 170.01 211.10
CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited for Audited Unaudited for
the six months for the the six months
ended year ended ended
31 December 30 June 31 December
2015 2015 2014
$ $ $
Net cash generated from operating activities 4,601,144 (11,152,988) (3,796,660)
Dividends paid (3,423,231) (2,963,434) –
Net cash utilised in investing activities (56,607,426) (202,967,002) (94,368,289)
Net cash generated from financing activities 67,357,833 222,656,987 99,359,179
Net movement in cash and cash equivalents 11,928,320 5,573,563 1,194,230
Cash at the beginning of the period 6,222,891 649,328 649,328
Total cash at the end of the period 18,151,211 6,222,891 1,843,558
CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS BY REGION
Unaudited for Audited Unaudited for
the six months for the the six months
ended year ended ended
31 December 30 June 31 December
2015 2015 2014
$ $ $
Profit/(loss) before income tax expense
Morocco (4,809,331) (6,888,969) (3,499,883)
Mozambique 12,396,370 12,907,229 6,790,595
Mauritius 248,453 (5,139,276) (2,932,572)
Zambia 114,255 – –
7,949,747 878,984 358,140
Total assets
Morocco 110,192,228 120,118,086 118,718,424
Mozambique 138,303,149 109,957,954 46,439,298
Mauritius 7,772,611 5,964,453 5,156,772
Zambia 40,591,615 – –
296,859,603 236,040,493 170,314,494
CONDENSED CONSOLIDATED SEGMENTAL ANALYSIS BY SECTOR
Unaudited for Audited Unaudited for
the six months for the the six months
ended year ended ended
31 December 30 June 31 December
2015 2015 2014
$ $ $
Profit/(loss) before income tax expense
Office 11,234,710 12,907,229 6,790,595
Retail (3,980,825) (6,888,969) (3,499,883)
Corporate accommodation 284,867 – –
Light industrial 74,250 – –
Corporate 336,745 (5,139,276) (2,932,572)
7,949,747 878,984 358,140
Total assets
Office 129,875,011 109,957,954 118,718,424
Retail 162,448,399 120,118,086 46,439,298
Corporate accommodation 1,634,867 5,964,453 5,156,772
Light industrial 74,250 – –
Corporate 2,628,555 – –
296,859,603 236,040,493 170,314,494
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Foreign
currency
Share translation Retained Total equity
capital reserve earnings holders
$ $ $ $
Unaudited for the six months ended
31 December 2014
Balance as at 30 June 2014 864,655 52,865 19,471 936,991
Loss for the period – – (2,155,597) (2,155,597)
Foreign currency translation reserve
movement – 735,801 – 735,801
Shares issued 87,941,691 – – 87,941,691
Share issue expenses (1,162,933) – – (1,162,933)
Balance as at 31 December 2014 87,643,412 788,666 (2,136,126) 86,295,952
Audited for the six months ended
30 June 2015
Profit for the period – – 2,338,977 2,338,977
Dividends paid – – (2,963,434) (2,963,434)
Foreign currency translation reserve
movement – (1,574,055) – (1,574,055)
Shares issued 42,762,783 – – 42,762,783
Share issue expenses (2,447,402) – – (2,447,402)
Balance as at 30 June 2015 127,958,794 (785,389) (2,760,583) 124,412,822
Unaudited for the six months ended
31 December 2015
Profit for the period – – 7,761,333 7,761,333
Dividends paid – – (3,423,231) (3,423,231)
Foreign currency translation reserve
movement – (10,045,316) – (10,045,316)
Shares issued 10,411,386 – – 10,411,386
Share issue expenses (49,881) – – (49,881)
Balance as at 30 June 2015 138,320,299 (10,830,705) 1,577,519 129,067,113
OUTLOOK
The Board remains confident on the prospects of the business growth and the future returns.
Any reference to future financial information included in the financial statements for the six months
ended 31 December 2015 are the responsibility of the Board and has not been reviewed or reported
on by the Group's external auditors. The forecast growth is based on assumptions, including
assumptions that a stable regional, political and economic environment as well as a stable global
macro-economic environment will prevail.
By order of the Board
International Fund Services Limited
Company Secretary
18 February 2016
Delta Africa directors: Sandile Nomvete (chairman), Greg Pearson*, Bronwyn Anne Corbett*, Peter Todd
(lead independent), Maheshwar Doorgakant, Chandra Kumar Gujadhur, Ian Macleod and Leon van de Moortele*
(*executive director)
Company secretary of Delta Africa: Intercontinental Fund Services Limited
Registered address of Delta Africa: Level 5, Alexander House, 35 Cybercity, Ebene, 72201, Mauritius
Transfer secretary (South Africa) of Delta Africa: Computershare Investor Services Proprietary Limited
Registrar and transfer agent (Mauritius) of Delta Africa: Intercontinental Secretarial Services Limited
Corporate advisor and JSE Sponsor of Delta Africa: PSG Capital Proprietary Limited
SEM sponsor of Delta Africa: Capital Markets Brokers Limited
www.deltainternationalproperty.com
Date: 18/02/2016 01:25:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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