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OASIS CRESCENT PROPERTY FUND - Final Preliminary Audited Results And Distribution Declaration

Release Date: 03/05/2016 17:30
Code(s): OAS     PDF:  
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Final Preliminary Audited Results And Distribution Declaration

Oasis Crescent Property Fund
A property fund created under the Oasis Crescent Property Trust Scheme
registered in terms of the Collective Investment Schemes Control Act
(Act 45 of 2002) having REIT status with the JSE
Share code: OAS
ISIN: ZAE000074332
(“Oasis” or “the Fund”)

FINAL PRELIMINARY AUDITED RESULTS AND DISTRIBUTION DECLARATION

The directors of Oasis Crescent Property Fund Managers Limited (“OCPFM” or
“the Manager”), the management company of the Fund, present the preliminary
audited results of the Fund for the year ended 31 March 2016 as follows:

Statement of financial position as at 31 March 2016

                                           Audited         Audited
                                           2016            2015
                                           R’000           R’000
Assets
Non-current assets                         1 020 578       842 520
Investment properties                      528 609         453 843
Property, plant and equipment              355             467
Straight-line lease accrual                9 763           8 212
Available-for-sale financial assets        481 851         379 998
Current assets                             103 296         88 429
Trade receivables                          3 089           2 211
Other receivables                          4 923           6 422
Trade receivables from related parties     110             110
Straight-line lease accrual                2 470           2 580
Financial assets at fair value
through profit or loss                     84 479          53 414
Other short-term financial assets          6 023           5 194
Cash and cash equivalents                  2 202           18 498
Total assets                               1 123 874       930 949
Unitholders’ funds and liabilities
Unitholders’ funds                         1 083 450       894 737
Capital of the Fund                        636 845         542 565
Retained income                            8 245           5 375
Other reserves                             438 360         346 797
Current liabilities                        40 424          36 212
Trade payables                             9 040           7 597
Accruals                                   444             234
Other payables                             1 353           1 601
Trade payables to related parties          1 078           701
Unitholders for distribution               28 427          25 173
Non-permissible income available for
dispensation                                 82            906
Total unitholders’ funds and
liabilities                                  1 123 874     930 949
Supplemental information
Net asset value (“NAV”) (per unit)           2 101 cents   1 919 cents



Statement of comprehensive income for the year ended 31 March 2016

                                             Audited       Audited
                                             2016          2015
                                             R’000         R’000
Income                                       94 684        84 607
Rental and related income                    72 703        65 668
Income from investments excluding non-
permissible income                           20 540        16 495
Straight-lining of lease income              1 441         2 444
Expenses                                     32 967        32 851
Property expenses                            27 255        28 165
Service charges                              4 493         3 643
Other operating expenses                     1 219         1 043
Net income from rentals and
investments                                  61 717        51 756
Fair value adjustment to investment
properties excluding straight-
lining of lease income                       24 994        18 189
Fair value adjustment to investment
properties                                   26 435        20 633
Straight-lining of lease income              (1 441)       (2 444)
Operating profit for the year                86 711        69 945
Net non-permissible investment income        338           362
Operating profit including non-permissible
income                                       87 049        70 307
Non-permissible income dispensed             (795)         (713)
Net profit for the year                      86 254        69 594
Other comprehensive income
Items that may subsequently be
reclassified to profit or loss               65 128        76 096
Fair value gain on available-for-sale
financial assets                             65 684        77 115
Realised fair value gain reclassified to
profit or loss                               (556)         (1 019)

Total comprehensive income for
the year                                     151 381       145 690
Basic earnings per unit (cents)              175.1         152.3

Additional information:
Headline earnings and distributable income
reconciliation
Basic earnings before non-permissible
income adjustment                            86 711        69 945
Non-permissible investment income            338           362
Basic Earnings after non-permissible
income adjustment                            87 049        70 307
Non-permissible income dispensed             (795)         (713)
Basic Earnings                               86 254        69 594
Adjusted for:
Realised gain on disposal of available-
for-sale financial assets                    (556)         (1 019)
Fair value adjustment to investment
properties                                   (24 994)      (18 189)
Headline earnings                            60 704         50 386
Less: Fair value adjustments on financial
assets at fair value through profit or
loss                                         (2 155)        (1 581)
Less: Fair value adjustments on tenant
deposits                                     (161)          (337)
Less: Straight-line lease accrual            (1 441)        (2 444)
Distribution income excluding non-
permissible income                           56 949          46 024
Basic and diluted earnings per unit
(cents)                                      175.1           152.3
Headline earnings and diluted headline
earnings per unit (cents)                    123.2           110.3
Distribution per unit including non-
permissible income (cents)                   117.2           102.3
Distribution per unit excluding non-
permissible income (cents)                   115.6           100.7
Weighted average units in issue              49 253 281      45 680 697
Units in issue at the end of the year        51 565 907      46 630 486

Statement of changes in unitholders’ funds for the year ended 31 March
2016

                              Capital
                              of the    Other           Retained
                              Fund      Reserves        income      Total
                              R’000     R’000           R’000       R’000
Balance at 1 April 2014       504 663   250 068         2 438       757 169
Net profit for the year
ended 31 March 2015           -         -               69 594      69 594
Other comprehensive income
Fair value gain on
available-for-sale
financial assets              -         76 096          -           76 096
Total comprehensive
income for the year
ended 31 March 2015           -         76 096         69 594     145 690
Issue of units                38 751    -               -          38 751
Transaction costs for
issue of new units            (173)     -               -          (173)
Transfer to non-
distributable reserve         -         20 633        (20 633)       -
Distribution received
in advance                    (676)     -               676            -
Distribution to
unitholders                   -         -             (46 700)   (46 700)
Balance at 31 March 2015      542 565   346 797        5 375      894 737
Net profit for the year
ended 31 March 2016           -         -              86 254     86 254
Other comprehensive
income
Fair value gain on
available-for-sale
financial assets              -         65 684          -          65 684
Realised gain on disposal
of available for sale
financial assets              -         (556)           -          (556)
Total comprehensive
income for the year
ended 31 March 2016           -         65 128         86 254     151 381
Issue of units                52 436    -               -          52 436
Units issued for property
acquisitions                  42 500    -               -          42 500
Transaction costs for
issue of new units            (233)     -               -          (233)
Transfer to non-
distributable reserve         -         26 435         (26 435)      -
Distribution received
in advance                    (422)     -                422         -
Distribution to
unitholders                   -         -              (57 371)   (57 371)

Balance at 31 March 2016      636 845   438 360         8 245      1 083 450

Distributions declared during the year amounted to 115.6 cents (2015:
100.7 cents) per unit.



Statement of cash flows for the year ended 31 March 2016
                                               Audited    Audited
                                               2016       2015
                                               R’000      R’000
Cash flows from operating activities
Net profit for the period                      86 254     69 594
Adjusted for:
Non-permissible investment income received     (338)      (362)
Depreciation                                   111        109
Provision for receivables impairment           (1 473)    2 565
Straight-line lease accrual                    (1 441)    (2 444)
Lease incentives                               940        605
Realised gain on sale of financial assets at
fair value through profit or loss              (556)      (1 019)
Fair value adjustment on financial assets
at fair value through profit or loss           (2 316)    (1 919)
Fair value adjustment to investment
properties excluding straight-lining of
lease income                                   (24 994)   (18 189)
Net operating cash flow before changes in
working capital                                56 187     48 940
Decrease/(increase) in current assets
Trade receivables                              595        600
Other receivables                              1 499      (628)
Trade receivables from related parties         -          192
(Decrease)/increase in current liabilities
Trade payables                                 1 443      197
Accruals                                       210        (550)
Other payables                                 (248)      75
Trade payables to related parties              377        107
Cash generated from operations                 60 063     48 933
Non-permissible investment income received     338        362
Unitholders for distribution                   (1 680)    (2 185)
Non-permissible income                         (824)      559
Net cash inflow from operating activities      57 897     47 669
Cash flows from investing activities
Acquisition of available-for-sale
financial assets                               (38 148)   (27 499)
Acquisition of financial assets at fair
value through profit or loss                   (49 171)   (30 248)
Acquisition of property, plant and equipment   -          (245)
Capital expenditure to investment properties   (8 054)    (9 058)
Lease incentives paid                          (159)      -
Acquisition of short-term financial assets     (1 149)    (16 008)
Proceeds from disposal of available-for-sale
financial assets                               1 979      10 643
 Proceeds from disposal of financial assets
 at fair value through profit or loss               20 742           30 282
 Net cash outflow from investing activities         (73 960)         (42 133)
 Cash flows from financing activities
 Transaction cost                                   (233)            (173)
 Net cash outflow from financing
 activities                                         (233)            (173)
 Net increase/ (decrease) in cash and
 cash equivalents                                   (16 296)         5 363
 Cash and cash equivalents
 At the beginning of the year                       18 498           13 135
 At the end of the year                             2 202            18 498

Segmental information for the year ended 31 March 2016

                                            Indus-     Invest-   Cor-
                         Retail   Offices   trial      ments     porate       Total
                         R’000    R’000     R’000      R’000     R’000        R’000
Segment revenue
Property income
Rental and
related income           21 553   10 112    22 042     -         -            53 707
Recoveries               11 872   3 107     4 017      -         -            18 996
Income from
investments
excluding non-
permissible
income
Dividend income
 offshore                -        -         -          10 889    -            10 889
Permissible
 investment
 income -
 domestic                -        -         -          6 779     -            6 779
                         33 425   13 219    26 059     17 668    -            90 371
Segment expense
Property
 expenses                18 237   3 697     5 977      -         -            27 911
Provision for
receivables impairment       89    262      (1 007)                           (656)
Service charges          -        -         -          -         4 493        4 493
Other operating
 expenses                -        -         -          135       1 084        1 219
                         18 326   3 959     4 970      135       5 577        32 967
Realised gain on
 sale of
 available-for-
 sale financial
 assets                 -         -         -         556         -          556
Segment result
Operating
 profit/(loss)          15 099    9 260     21 089    18 089   (5 577)    57 960
Net finance
 income
Interest received       -         -         -         -        338        338
NPI Dispensed           (457)     -         -         -        (338)      (795)
Net profit/(loss)
 before
 straight-line
 lease income
 and fair value
 change to
 investment
 properties             14 642    9 260     21 089    18 089   (5 577)    57 503
Straight-lining
 of lease
 income                 1 889     6         (454)     -        -          1 441
Fair value
 adjustment to
 investment
 properties             2 453     11 808    10 733    -        -          24 994
Fair value
 adjustment to
 financial
 assets at fair
 value through
 profit or loss         -         -         -         2 316    -           2 316
Net profit/loss
after straight line
lease income and fair
value change to
investment properties   18 984    21 074    31 368    20 405   (5 577)    86 254

Segment assets
Investment
 properties             207 680   117 971   202 957   -         -         5528 609
Property, plant 
 and equipment          327       29        -         -         -          355
Straight-line
 lease accrual
 non-current              5 503     -         4 260     -       -          9 763
Straight-line
 lease accrual
 current                  492       6         1 972     -       -          2 470
Available-for-
 sale financial
 assets                   -         -         -         481 851   -            481 851
Other short term assets   2 901     209       2 913     -         -            6 023
Trade receivables         1 972     345       773       -         -            3 089
Other receivables         401       -         1 559     2 324     639          4 923
Trade receivables
 from related
 parties                  -         -         -         -         110          110
Financial assets
 at fair value
 through profit
 or loss                  -         -         -         84 479    -            84 479
Cash and cash
 equivalents              -         -         -         2 202     -            2 202
                          219 275   118 560   214 434   570 856   749          1 123 874
Segment
 liabilities
Trade payables            4 819     439       3 782     -         -            9 040
Accruals                  21        7         33        -         383          444
Other payables            584       -         251       -         518          1 353
Trade payables
 to related
 parties                  95        1         73        38        870          1 078
Unitholders for
 distribution             -         -         -         -         28 427       28 427
Non-permissible           -         -         -         -             82          82
 income
 available for
 dispensation
                          5 519     447       4 139     38        30 281       40 424
Net current segment
assets/(liabilities)      246       113       3 078     88 967    (29 532) 62 872
Capital
 expenditure              7 446     37        571       -         -            8 054

Segmental information for the year ended 31 March 2015

                                            Indus-      Invest-       Cor-
                       Retail     Offices   trial       ments         porate     Total
                    R’000    R’000    R’000    R’000    R’000     R’000
Segment revenue
Property income
Rental and
 related income     18 731   9 490    19985    -        -         48 206
Recoveries          10 290   3 446    3 726                       17 462
Income from
 investments
 excluding non-
 permissible
 income
Dividend income
 offshore           -        -        -        9 838    -         9 838
Permissible
 investment
 income -
 domestic           -        -        -        3 720    -         3 720
                    29 021   12 936   23 711   13 558   -         79 226
Segment expense
Property
 expenses           15 940   4 369    5 291    -                  25 600
Provision for
receivable
impairment          328      -        2 238    -        -         2 565
Service charges     -        -        -        -        3 643     3 643
Other operating
 expenses           -        -        -        -        1 043     1 043
                    16 268   4 369    7 528    -        4 686     32 851
Realised gain on
 available-for-
 sale financial
 assets             -        -        -        1 019    -         1 019
Segment result
Operating
  profit/(loss)     12 753   8 567    16 183   14 577   (4 686)   47 394
Net finance
 income
Interest received   -        -        -         -       362       362
NPI dispensed       (351)    -        -         -       (362)     (713)
Net profit/(loss)
 before
 straight-line
 lease income
 and fair value
 change to
 investment
 properties          12 402    8 567      16 183      14 577      (4 686)   47 043
Straight-lining
 of lease
 income              1 151     -          1 293       -           -         2 444
Fair value
 adjustment to
 investment
 properties          3 438     1 402      13 349      -           -         18 189
Fair value
 adjustment to
 financial
 assets at fair
 value through
 profit or loss      -         -          -           1 918       -         1 918
Net profit/(loss)
 after
 straight-line
 lease income
 and fair
 value change
 to investment
 properties          16 991    9 969      30 825      16 495      (4 686)   69 594
Segment assets
Investment
 properties          181 257   97 378     175 208     -           -         453 843
Property, plant
 and equipment           419         48   -           -           -            467
Straight-line
 lease accrual
 non - current         3 615   -              4 597   -           -          8 212
Straight-line
 lease accrual
  current               491    -              2 089   -           -          2 580
Available-for-
 sale financial
 assets              -         -          -           379 998     -         379 998
Other short term
assets               2 556     -          2 638       -           -          5 194
Trade receivables    1 445     326          440       -           -          2 211
Other receivables      335     -          1 971       3 526      590        6 422
Trade receivables
from related parties -         -          -           -           110          110
Financial assets
 at fair value
 through profit
 or loss            -           -         -            53 414    -          53 414
Cash and cash
 equivalents        -           -         -            18 498    -           18 498
                    190 118     97 752    186 943     455 436   700        930 949
Segment
 liabilities
Trade payables          3 420       790       3 387   -         -           7 597
Accruals                   73   -     5          30   -         126           234
Other payables            727                   234   -         640         1 601
Trade payables
 to related
 parties                 125                    52    -         524           701
Unitholders for
Distribution                                                    25 173     25 173

Non-permissible
 income
 available for
 dispensation       -           -         -           -           906         906
                    4 345       795       3 703       -         27 369     36 212
Net current segment
assets/(liabilities) 482        (469)     3 433       75 438    (26 667)   52 217
Capital
 expenditure        5 166        384      3 508       -         -          9 058

Commentary

Basis of preparation and accounting policies
The preliminary financial statements are prepared in accordance with the
requirements of the JSE Limited’s “Listings Requirements” for preliminary
reports. 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 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 and the Collective Investment Schemes
Control Act of 2002. The accounting policies applied in the preparation of
the financial statements from which the preliminary financial statements
were derived are in terms of International Financial Reporting Standards and
are consistent with those accounting policies applied in the preparation of
the previous annual financial statements.

The non-permissible income is dispensed to the Oasis Crescent Fund Trust
which is a registered public benefit organisation. The accounting policies
are consistent with those applied in the most recent annual financial
statements of the Fund.

The financial statements are prepared on the historical cost basis as
modified by the revaluation of investment properties, financial assets at
fair value through profit or loss and available-for-sale financial assets.

PricewaterhouseCoopers Inc. has audited the financial information set out
in this report. Their unqualified audit report is available for inspection
at the Fund’s registered office.

These preliminary audited results were compiled by Michael Swingler CA(SA).

Any reference to the future financial performance of the Fund contained in
this announcement has not been reviewed or reported on by the Fund’s
auditors.

Financial highlights

    Distribution per unit (excluding non-permissible income) increased by
    14.8% to 115.6 cents per unit (FY2015: 100.7 cents)
    Net Asset Value per unit increased by 9.5% to 2 101 cents per unit
    (FY2015: 1 919 cents)
    Intrinsic value return of 14.4% per annum since inception compared to
    inflation of 6.0% per annum
                                                      2016      2015
Distribution per unit including non-permissible
income (cents)                                        117.2     102.3
Distribution per unit excluding non-permissible
income (cents)                                        115.6     100.7

Property portfolio valuation(Rm)                       541       465
Investment in Offshore Listed Properties (Rm)          421       345
Investments in Local Listed Properties and other
current assets(Rm)                                     162       121
Net asset value per unit (cents)                       2 101     1 919
Listed market price at year end (cents)                1 950     1 750

 Movement in investment properties:

 Carrying value at the beginning of the year           453 843   427 201
 Acquisitions during the period                        42 500      -
 Subsequent capitalised expenditure                    8 054     9 058
 Movement in lease incentives                          (782)     (605)
 Fair value adjustment to investment properties
 excluding straight-lining of lease income             24 994    18 189
 Revaluation                                           26 435    20 633
 Change in straight-line lease accrual                 (1 441)   (2 444)

 Carrying value at the end of the year                 528 609   453 843
 The valuation of investment properties include bulk sales, discounted cash
 flow and net income capitalisation, using contracted rental income and
 other cash flows. Capitalisation rates used in the valuations are the most
 recent rates published by the South African Property Owners Association
 (SAPOA). The principal assumptions underlying estimation of fair value
 are those related to the receipt of contractual rentals, expected future
 market rentals, void periods ranging from 0% to 5%, maintenance
 requirements and appropriate discount rates. These valuations are
 regularly compared to actual market yield data, actual transactions by
 the Fund and those reported by the market. Valuations were carried out as
 at 31 March 2016 by Mills Fitchet Magnus Penny, an independent,
 professional valuer registered without restriction in terms of the
 Property Valuers Act No. 47 of 2000.
 The valuation of investment properties requires judgement in the
 determination of future cash flows and an appropriate capitalisation rate
 which varies between 7.50% and 10.25% (2015: 6.75% and 13%). Changes in
 the capitalisation rate attributable to changes in market conditions can
 have a significant impact on property valuations. The valuation of
 investment properties may also be influenced by changes in vacancy rates.

Fair value estimation:
Effective 1 April 2013, the Fund adopted IFRS 13 for financial instruments
that are measured in the statement of financial position at fair value
which requires disclosure of fair value measurements by level of the
following fair value measurement hierarchy:
- Quoted prices (unadjusted) in active markets for identical assets or
liabilities (level 1).
- Inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly (that is, as
prices) or indirectly (that is, derived from prices) (level 2).
- Inputs for the asset or liability that are not based on observable
market data (that is, unobservable inputs) (level 3).

The following table presents the Fund's assets and liabilities that are
measured at fair value at 31 March 2016:

 Assets                               Level 1   Level 2   Level 3   Total
                                      R'000     R'000     R'000     R'000
 Available-for-sale financial
 assets
 Investment in Oasis Crescent
 Global Property Equity Fund           -        420 545   -         420 545
 Investment in listed property
 funds                                61 306    -         -         61 306
 Financial assets at fair value
 through profit or loss
 Investment in Oasis Crescent
 Income Fund                          -         84 479    -         84 479
 Other short-term financial assets    -         6 023     -         6 023
 Investment property
 Investment property                  -         -         528 609   528 609

The following table presents the Fund's assets and liabilities that are
measured at fair value at 31 March 2015:

 Assets                                    Level 1   Level 2   Level 3   Total
                                         R'000    R'000     R'000     R'000
Available-for-sale financial assets
Investment in Oasis Crescent Global
Property Equity Fund                      -       342 789   -         342 789
Investment in listed property funds      35 210   -         -         35 210
Investment in Oasis Crescent
International Property Equity Feeder
Fund                                     -        1 999     -         1 999
Financial assets at fair value through
profit or loss
Investment in Oasis Crescent Income
Fund                                     -        53 414    -         53 414
Other short-term financial assets        -         5 194    -          5 194
Investment property
Investment property                      -        -         453 843   453 843


The fair value of financial instruments traded in active markets is based on
quoted market prices at the statements of financial position date. A market
is regarded as active if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group, pricing service, or
regulatory agency, and those prices represent actual and regularly occurring
market transactions on an arm's length basis. These instruments are included
in level 1.

The instruments included in level 2 comprises of Irish stock exchange
property equity investments classified as available-for-sale and investments
in Shari'ah compliant instruments classified as financial assets at fair
value through profit or loss. The fair value of financial instruments that
are not traded in an active market is determined by using valuation
techniques. These valuation techniques maximise the use of observable
market data where it is available and rely as little as possible on entity
specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in level 2. If one or
more of the significant inputs is not based on observable market data, the
instrument is included in level 3.

Specific valuation techniques used to value financial instruments include:
Available-for-sale financial assets
Oasis Crescent Global Property Equity Fund:
The fair value of investments in the Oasis Crescent Global Property Equity
Fund is determined using the closing Net Asset Value (NAV) price published
by Oasis Global Management Company (Ireland), the management company of the
fund, and listed on the Irish Stock Exchange. The shares are not actively
traded on the Irish Stock Exchange and are therefore not included in Level
1.
Investment in listed property funds
 The fair value of these investments is determined using the closing bid
price as at statement of financial position date. These shares are listed
and traded on the JSE Stock Exchange and are therefore classified as Level
1.
Financial assets at fair value through profit or loss
Oasis Crescent Income Fund
The fair value of investments in Oasis Crescent Income Fund is determined
using the closing Net Asset Value (NAV) price published by Oasis Crescent
Management Company Ltd., the management company of the fund. These
 investments are not actively traded on an exchange and are therefore not
 classified as Level 1.


INTRODUCTION
The Oasis Crescent Property Fund is a well-diversified Real Estate Investment
Trust (“REIT”) invested in South African direct and listed property
investments and high quality global listed REITS. The Fund has a strong balance
sheet with no debt and substantial reserves which provide flexibility to take
advantage of opportunities.

The objective of the Manager is to protect and grow the real wealth of
investors by providing sustainable growth in Net Asset Value and delivering a
consistent income stream that has potential to grow. Our focused approach has
delivered significant real wealth for investors with an annualised total
unitholder return of 13.9% relative to annualised inflation of 6.0% since
inception, outperforming inflation by an average of 7.9% per annum. Your
Fund’s annualised total intrinsic value return is 14.4% per annum since
inception.


Cumulative returns Since        FY2016   FY2015   FY2014 FY2013   FY2012
                   Inception
Unitholder return 286.3         286.3    227.3    165.3   125.9   104.2
Intrinsic value    302.8        302.8    248.7    194.6   161.0   124.1
return
Inflation          83.7         83.7     71.7     65.2    56.0    47.3

Annual Returns      Since
                    Inception   FY2016   FY2015   FY2014 FY2013   FY2012
Unitholder return   13.9        18.0     23.4     17.4   10.7     7.8
Intrinsic value     14.4        15.5     18.4     12.9   16.4     11.2
return
Inflation           6.0         7.0      3.9      5.9     5.9     6.0

Market Price                    1 950    1 750    1 500   1 350   1 300
NAV                             2 101    1 919    1 706   1 587   1 439


MARKET OVERVIEW
In global property markets, the US rental growth and occupancy recovery remains
ahead of the other major developed markets. The level of new supply in
developed property markets is low while funding continues to be a limitation
for speculative development. Global REIT debt levels are well below their 2008
peaks and the average debt maturity has increased. The current global REIT DY
to 10yr bond yield spreads are above their long term averages. REITS with a
high exposure to the major global cities, positive secular demand drivers,
enhancing refurbishments / developments and superior balance sheets are well
positioned to outperform as bond yields normalise.

In a more challenging environment for the South African consumer, shopping
centres that are appealing destinations, are close to the major cities or
offer convenience are better positioned to grow trading density and rentals.
Demand in the office sector is dependent on employment and business confidence
which will take time to recover. The new supply in the Gauteng market creates
an increasing vacancy and rental risk for B and C grade office properties.
Supply in the industrial sector remains low due to the limited availability
of serviced land while demand is driven by companies looking to improve the
efficiency of their supply chain and provide goods to their customers through
various sales channels.

PORTFOLIO OVERVIEW
                             FY2016           FY2015                 FY2014
                          R'mil     %      R'mil      %           R'mil      %
 Direct Property           541      48      465      50            436      55
 Global Investments        421      37      345      37            267      34
 Cash, SA
 Investments and
 other                     162     15       121     13            84        11
 Total Assets             1 124    100      931     100           787       100

The Fund has focused on building a portfolio with a combination of high quality
direct property investments and global listed REITS with properties located
in   the   major  global   cities,   which   adds   geographic   and   currency
diversification. The direct property portfolio includes exposure to the
retail, industrial and office sectors with a high exposure to the Western
Cape. In order to attract world class tenants, there is continuous investment
in and maintenance of the direct properties. The global investments consist
of the Oasis Crescent Global Property Equity Fund which is well positioned
with a focus on REITS with the best quality assets and balance sheets. The
cash and other listed SA Investments provide flexibility for the Fund to
pursue growth opportunities.

REVIEW OF RESULTS AND OPERATIONS
Highlights
Distribution per unit increased by 14.8% to 115.6 cents per unit (FY2015:
100.7 cents)
Net Asset Value per unit increased by 9.5% to 2 101 cents per unit (FY2015: 1
919 cents)
Intrinsic value return of 14.4% per annum since inception compared to inflation
of 6.0% per annum

                                                          FY2016 FY2015 FY2014
 Distribution per unit including non-
 permissible income (cents)                               117.2     102.3   87.2
 Distribution per unit excluding non-
 permissible income (cents)                               115.6     100.7   85.1
 Property portfolio valuation (R’mil)                     541       465     436
 Investments in offshore listed
 Properties (R’mil)                                       421       345     267
 Investments in Local Listed
 Properties and other current assets
 (R’mil)                                                  76        44      30
 Cash and cash equivalents (R mil)                        86        77      54
 Net asset value per unit (cents)                         2 101     1 919   1 706
 Listed market price at year end
 (cents)                                                  1 950     1 750   1 500



                 FY2016       FY2015     FY2014    2016/2015         2016/2014
                                                                         %
                    (R'000)   (R'000)      (R'000)      %                annualised
 Direct
 property net
 income             44 990    37 153       30 479       21               21
 Global
 Investment
 Income             10 889    9 838        7 426        11               21
 Cash and Local
 Investment
 Income             6 646     3 720        3 410        79               40


 Shared expense     (5 576)   (4 686)      (3 744)      19               22

 Distributable
 Income excl
 NPI                56 949    46 024       37 571       24               23

During the period, the Fund benefitted from the active asset management,
successful refurbishments, filling of vacancies and property acquisitions
which resulted in solid growth in rentals and property expense recoveries.
The acquisition of 24 Milner Road and 265 Victoria Road contributed 3% towards
the increase in direct property net income while the addition of the national
drive-throughs contributed an additional 2% towards the increase in direct
property net income. Filling of vacancies contributed 4% towards the increase
in direct property income with escalations contributing a further 7%. The
recovery of debtors previously provided for contributed 4% to the increase in
direct property net income.

The investment income earned from the global investments benefited from the
weaker Rand while the investment income from the Oasis Crescent Income Fund
increased significantly due to the increased investment of cash flows and
higher profit rates. The higher service charge expense is due to the increase
in the market capitalisation of the Fund. The weighted average units in issue
increased due to a high proportion of unitholders electing to reinvest their
dividends in additional units as well as the two properties acquired through
the issue of units. The Fund continues to focus on renewing leases coming up
for expiry and further improvements in the quality of the tenant mix.

                                                         Revenue              Revenue
                                  Rentable Area          FY2016               FY2015
                                  Area (m²)     %        (R'mil)    %         (R'mil)   %
 Western Cape                     79 545        83       44.9       61        40.3      61
 KwaZulu-Natal                    16 407        17       28.7       39        26.0      39
 Total - Direct Property (excl
 straight lining)                 95 952             100 73.6       100       66.3      100


Note: Revenue includes recoveries and excludes leasing incentives

Segmental Profile



                                       FY2016                      FY2015
                                 Average      Average      Average       Average
                                rental per    rental     rental per       rental
  Segment       Rentable area
                                m² for the   escalatio   m² for the     escalation
                                  period      n per        period           per
                    (m²)          (m²)       (m²) (%)       (m²)         (m²) (%)
 Retail            20 936         114           8           117              8
 Office            7 429          113           8           125              9
 Industri
 al                67 587          28           8            26               8
 TOTAL             95 952

Vacancy Profile

 % of total rentable area                      FY2016     FY2015
 Retail                                            0.8        1.7
 Office                                            0.0        0.0
 Industrial                                        0.0        0.0

Note: This relates only to the Direct Property Portfolio

Lease expiry profile
                                        FY 2016                  FY2015
                                 Rental Area Revenue     Rental Area Revenue
                                      %         %             %          %
 - Within   1   year                 57         52            29        43
 - Within   2   year                  4         6             34        23
 - Within   3   year                  5         9             3          3
 - Within   4   year                  1         2             1          3
 - Within   5   year or more
 years                               33          31          33              28
                                     100         100         100             100

Tenant Profile

                                                                      FY 2016      FY2015
                                                                        (%)         (%)
 A - Large Nationals, large listed, large franchisees,
 multi-nationals and government                                         67          72
 B - Nationals, listed, franchisees and medium to large
 professional firms                                                    17           18
 C - Other                                                             16           10
 TOTAL                                                                 100          100

Note: Tenants are classified as large or major (“A” grade) or medium to
large (“B” grade) based on their financial soundness, profile and global or
national footprint.


Investment Portfolio Characteristics
The investment in high quality global listed REITS provide geographic and
sector diversification. With Global REIT cash flow and dividend yields
remaining attractive relative to bond yields, the Oasis Crescent Global
Property Equity Fund is well positioned. The average cash flow yield of the
fund is 6.2% and the dividend yield is 4.9% which continues to offer value
relative to the average bond yield and inflation of 1.9% and 1.1% respectively.
The Fund invests its liquid reserves in the Oasis Crescent Income Fund which
provides competitive, Shariah compliant income and flexibility to take
advantage of opportunities.

OUTLOOK
The Fund remains focused on addressing the lease expiry profile through
strategically renewing leases of high quality tenants and improving the tenant
mix where necessary. Expiries also provide opportunities to strategically
refurbish properties and enhance tenant mix. The accumulated cash and liquid
reserves provide the flexibility to take advantage of opportunities. Post
year-end the Fund has acquired a property in the Western Cape being 364
Victoria Road for R23 million, which will form part of the retail and office
segments. This property has location advantages and development potential.
The global investments will continue to provide diversification benefits to
investors and will remain a unique characteristic of the Fund. Management is
confident in the strategy of the Fund.

ADDITIONAL INFORMATION
Property management
Property management is outsourced to the Manager and external service
providers. The amount paid to the Manager was R1.25 million (FY2015: R1.11
million)


Service charge
The service charge is equal to 0.5% per annum of the Fund’s market
capitalization and borrowing facilities based on the average daily closing
prices of the units. The amount paid to the Manager was R4.49 million (FY2015:
R3.64 million)

Units in issue
As at 31 March 2016 the number of units in issue was 51,565,907 (FY2015:
46,630,486)

    Unitholders' holding more than 5% of issued units as at 31
                            March 2016:
                                          NUMBER OF      HOLDING
 NAME                                       UNITS          (%)
 Oasis Crescent Balanced Progressive
 Fund of Funds                           6 669 699.00     12.9
 Oasis Crescent Property Company
 (Pty) Ltd                               5 278 304.00     10.2
 Oasis Crescent Pension Annuity
 Stable Fund                             4 474 890.00      8.7
 Oasis Crescent Balanced Stable Fund
 of Funds                                4 109 721.00      8.0
 Oasis Crescent Retirement Annuity
 High Equity Fund                        3 424 640.00      6.6

 BNP Paribas Securities                   3 029 526.00     5.9

 Oasis Crescent Income Fund               2 566 295.00     5.0

 Oasis Crescent Equity Fund               2 563 972.00     5.0
 Total                                    32 117 047.00    62.3
Shareholding in OCPFM

OCPFM is 100% owned by Oasis Group Holdings (Proprietary) Limited

Related party transactions and balances

Oasis Crescent Property Fund Managers Limited is the management company of
the Fund in terms of the Collective Investment Schemes Control Act.

Oasis   Group  Holdings   (Proprietary)  Limited   is  a   tenant  at   The
Ridge@Shallcross as well as 24 Milner Road and the parent of Oasis Crescent
Property Fund Managers Limited.

As disclosed in the prospectus of Oasis Crescent Global Property Equity
Fund, a management fee is charged for investing in the Oasis Crescent Global
Property Equity Fund by Oasis Global Management Company (Ireland) Limited,
the manager of the Fund.

As disclosed in the prospectus of Oasis Crescent Income Fund, no management
fee is charged for investing in the Oasis Crescent Income Fund by Oasis
Crescent Management Company Limited, the manager of the Fund.

Abli Property Developers (Pty) Ltd. renders property development consulting
services to the Fund on capital development projects.

Oasis Asset Managers renders investment management services to the Fund on
Available-for-sale financial assets.

There are common directors to Oasis Crescent Property Fund Managers Limited,
Oasis Group Holdings (Pty) Ltd., Oasis Global Management Company (Ireland)
Limited, Oasis Crescent Management Company Limited, Oasis Asset Management
and Abli Property Developers (Pty) Ltd. Transactions with related parties
are executed on terms no less favourable than those arranged with third
parties.

Type of related party transactions

The Fund pays a service charge and a property management fee on a monthly
basis to Oasis Crescent Property Fund Managers Limited.

Related party transactions

                                                       2016      2015
                                                       R’000     R’000
Service charge paid to Oasis Crescent Property Fund
  Managers Limited                                     4 493     3 643
Property management fees paid to Oasis Crescent
  Property Fund Managers Limited                       1 251     1 112
Rental and related income from Oasis Group
  Holdings (Proprietary) Limited at The
  Ridge@Shallcross                                     467       413
Rental and related income from Oasis Group
  Holdings (Proprietary) Limited at 24
  Milner Road                                          275       -
Consulting fees paid to Abli Property Developers
 (Proprietary) Limited for consulting services on
  capital projects                                      186      197
Investment management fees paid to Oasis
  Asset Management                                      135      -
Related party balances
Trade receivables from Oasis Group Holdings
  (Proprietary) Limited                                 110      110
Trade payables to Oasis Crescent Property Fund
  Managers Limited                                      (873)   (658)
Trade payables to Oasis Group Holdings (Proprietary)
  Limited                                               (154)    (39)
Trade payables to Oasis Asset Management                (38)      -
Trade payables to Abli Property Developers
  (Proprietary) Limited                                 (12)     (4)

The Fund issued 2 296 056 new units as consideration for the acquisition of
two properties, 24 Milner Road and 265 Victoria Road. 1 296 596 new units
were issued to Oasis Crescent Fund Trust in consideration for 265 Victoria
Road at an issue price of 1 851 cents per unit and 999 460 new units were
issued to Oasis Crescent Property Company (Proprietary) Limited in
consideration for 24 Milner Road at an issue price of 1 851 cents per unit.

Declaration announcement in respect of distribution for the 6 months ended
31 March 2016

Notice is hereby given that a distribution for the six-month period ended
31 March 2016 has been approved and declared of 5 504.971 cents (in
aggregate), after non-permissible income, for every 100 (one hundred) units
so held, to unitholders recorded in the register of the Fund at 12:00pm on
Friday, 10 June 2016. Unitholders may elect to receive the distribution in
cash or to reinvest the distribution by the purchase of new units at a rate
of 2.621 units at 2 101 cents per unit (in aggregate), for every 100 (one
hundred) units so held.

Unitholders should take note of the corporate timetable as set out below in
respect of the abovementioned distribution and the election in terms thereof.



              SALIENT DATES AND TIMES                          2016

Declaration announcement on SENS of distribution         Tuesday, 3 May
and right of election to purchase new units or
receive a cash payment

Finalisation announcement on SENS in respect of          Friday, 20 May
distribution and right of election to purchase
new units or receive a cash payment

Circular and form of election posted to                  Friday, 20 May
unitholders

Last day to trade in order to be eligible for the        Friday, 3 June
distribution
Trading commences ex- entitlement to the                 Monday, 6 June
distribution

Listing of maximum possible number of units that      Wednesday, 8 June
may be purchased at commencement of trade on

Closing date for the election of cash                   Friday, 10 June
distribution at 12:00 pm on

Record date for the distribution                        Friday, 10 June

Cash distribution cheques posted and CSDP/broker        Monday, 13 June
accounts updated with cash

Announcement of the results of the distribution         Monday, 13 June
on SENS

Unit certificates posted and CSDP/broker accounts    Wednesday, 15 June
updated with units

Adjustment of number of new units listed on or          Friday, 17 June
about

  Notes:

  1. Unitholders reinvesting their distribution in new units are alerted to
     the fact that the new units will be listed 3 business days after the
     last day to trade and that these new units can only be traded 3 business
     days after the last day to trade, due to the fact that settlement of
     the units will be 3 business days after the record date, which differs
     from the conventional one business day after the record date settlement
     process.
  2. Units may not be dematerialised or rematerialised between Monday, 6
     June 2016 and Friday, 10 June 2016, both days inclusive.
  3. The above dates and times are subject to change. Any changes will be
     announced on SENS.
  4. All times quoted in this circular are South African times.
  5. Dematerialised unitholders should provide their CSDP or broker with
     their election instructions by the cut-off time stipulated in terms of
     their custody agreement with such CSDP or broker.
  6. If no election is made, the distribution accrued to the unitholder will
     be used to purchase additional units.


Tax implications

For taxation purposes, OCPF is a REIT as defined in the Income Tax Act as
from 01 April 2013 and, accordingly, the tax implications of the distribution
have changed as from that date. The distribution will not be exempt from
income tax in terms of section 10(1)(k) of the Income Tax Act.
For South African tax residents, the distribution will be exempt from
dividends tax in terms of section 64F(l) of the Income Tax Act, provided
that you, as unitholder, provide the transfer secretary, or your nominee,
custodian or CSDP with confirmation of your tax residence status in the
prescribed form. If you do not provide the required residence status, they
will have no choice but to withhold dividends tax at a rate of 15%.
For non-residents for South African tax purposes, the 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 shareholder. Non-resident unitholders that believe that
a reduced rate of tax applies in respect of their applicable DTA should
contact the transfer secretary, or their nominee, custodian or CSDP for the
prescribed form to record the reduced rate of tax.

Where dividends tax is withheld at 15% for non-resident unitholders:
-    the reinvestment ratio for non-resident unitholders will be 2.22785
     units at 2,101 cents per unit, for every 100 (one hundred) units held
     on the record date;
-    should such unitholders elect to receive the distribution in cash, they
     will receive 4,679.225 cents per 100 units held on the record date.

The Income Tax Act sections applicable to the distributions made are as
follows:

Property income distribution from a REIT – section 10(1)(k) and section
64F(l)

Both resident and non-resident unitholders are encouraged to consult their
professional tax advisors with regard to their individual tax liability in
this regard.

A circular will be posted out to unitholders on or about Friday, 20 May
2016, in respect of the unit and income distribution.

English copies of this circular and form of election are available at the
offices of OCPF’s designated adviser, PSG Capital Proprietary Limited, at
the addresses set out in the Corporate Information section and at the office
of OCPF, 96 Upper Roodebloem Road, University Estate, Cape Town, during
normal business hours from Friday, 20 May 2016 until Friday, 10 June 2016.

The number of units in issue at the date of the aforesaid distribution is
51 565 907. The income tax reference number of the Fund is 3354212148.

By order of the board
Oasis Crescent Property Fund Managers Limited

Cape Town
3 May 2016
Designated Adviser

PSG Capital (Proprietary) Limited

Date: 03/05/2016 05:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

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