Wrap Text
Unaudited consolidated interim results for the 6 months ended 31 August 2016
Equites Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2013/080877/06)
JSE share code: EQU ISIN: ZAE000188843
(Approved as a REIT by the JSE)
("Equites" or "the Company")
Unaudited consolidated interim results for the 6 months ended 31 August 2016
Highlights
- Distribution per share for the 6 months ended 31 August 2016 amounts to
54.44 cents, which is 20% higher than the corresponding financial period.
- Net asset value per share increased by 5% during the 6 months ended
31 August 2016 to R13.54.
- Fair value of property and land portfolio totals R5.9 billion as at
31 August 2016.
- Strategic joint venture concluded with Attacq Limited, which included the
acquisition of 8 logistics facilities located in Waterfall, Midrand.
- Acquisition of the Company's first property outside South Africa, a
Tesco Distribution facility in Hinckley, England concluded in June 2016.
Commentary
1. Nature of the business
Equites is the only JSE-listed specialist logistics property fund.
The fund listed on the JSE on 18 June 2014 with a portfolio
value of R1 billion and has grown to a portfolio size of R5.9 billion
at 31 August 2016. The Company is a Real Estate Investment Trust
("REIT") and is internally asset managed. The majority of property
management is also performed internally.
The Company aims to provide investors with pure exposure to high
quality logistics properties let to investment grade tenants both in
South Africa and in the United Kingdom. The Company has a proven
ability to identify and acquire well located logistics assets that
meet the requirements of large, institutional tenants. In South
Africa, this is complemented with the in-house development of modern
logistics facilities, enabled by strategic land holdings.
The Company focuses exclusively on proven logistics nodes near large
population centres and major transport links that have predictable
patterns of strong rental growth. In South Africa, the Company's
portfolio is spread between Cape Town and Gauteng. In the UK, the
Company focuses on premium "big-box" distribution centres, let to
investment grade tenants on long-dated "triple net" leases, in proven
logistics nodes and built to institutional specifications. The
locations of preference are the central Midlands and "last-mile"
fulfilment centres near to major conurbations.
2. Commentary on results
Healthy escalations on the Equites portfolio and a 100% occupancy
rate in its industrial portfolio provided a stable base which was
buoyed by:
- the inclusion for the full 6 month period of yield accretive
acquisitions and developments that were completed during the prior
year;
- savings in finance costs following the R1.5 billion accelerated
book build in November 2015;
- nominal increases in administrative costs, despite a large increase
in the portfolio size; and
- the acquisition of a property in the United Kingdom (a distribution
centre let to Tesco Distribution Ltd.), at an accretive yield.
The Company also benefited from the completion of its first
significant development during the period - the TFG distribution
centre in Midrand, which was completed at the end of March 2016. The
development was completed within the original budget and timeline.
The Company's continued strong financial results are a reflection of
its focus on institutional tenants and sound property fundamentals.
Rental growth is also supported by continued demand for modern, well
located, logistics facilities. As a result, the Company has not
suffered any material tenant defaults or downward rental reversions,
despite a weak economic environment.
3. Acquistions
3.1. Joint venture with Attacq
Effective 1 July 2016, Equites concluded a joint venture agreement
with Attacq Limited ("Attacq") (through its wholly-owned subsidiary
Attacq Waterfall Investment Company). The joint venture forges a
strategic partnership to jointly pursue industrial developments and
initially resulted in the acquisition of 8 completed industrial
properties for R733 million at Waterfall, Midrand. These acquisitions
were fully implemented before the end of the current reporting period
and Equites owns 80% of the joint venture and Attacq the remaining
20%.
The tenants of 7 of the 8 buildings are categorised as A-grade, being
major franchisees forming part of international groups. The weighted
average lease expiry profile of the buildings is 8.4 years and the
acquisition yield was c. 8%.
1 July 2016
(Effective Date)
Fair value of properties 733 237
External debt (368 157)
365 080
Subscription for shares
Equites Property Fund (80%) 292 064
Attacq (20%) 73 016
3.2. Expansion into the United Kingdom
As a South African-based specialist REIT focussed on high quality
assets serving the logistics and distribution sector, Equites has
considered various opportunities to scale up its portfolio while
mitigating the risks of its emerging market focus by investing in
assets it understands in a familiar jurisdiction that offers a mature
and stable economic and political outlook and a thriving logistics
sector. In considering these opportunities, Equites has been mindful
of the scarcity of suitable high quality assets within its area of
specialisation available for acquisition in the South African market.
The board of Equites preferred the UK market over other developed
markets for a number of reasons, particularly the fact that its
language, culture, business practices and banking and legal systems
are similar to South Africa; the UK property market is one of the
most sought after and strongest in the world and the UK is a
sophisticated and transparent market with a constant flow of quality
information on supply and demand assisting informed decision making.
Equites' management has a wealth of experience and a successful
investment track record in the UK logistics property market through
prior business ventures. The Company has also accessed hands-on local
expertise through a strategic partnership with Birmingham based
logistics experts Collingwood Rigby LLP who will provide support
services to Equites in respect of its UK based portfolio until such
time as the size of Equites' UK investments warrant its own human
resources infrastructure.
3.2.1. Acquisition of Tesco distribution centre
As announced on SENS on 27 May 2016, Equites, through its Isle of
Man based wholly-owned subsidiary, Equites International Limited
("Equites International") concluded an agreement in terms of which
Equites International acquired a Tesco Distribution Centre in
Hinckley, England for a purchase consideration of £28 million in
cash.
This property has a gross lettable area of 27,725 square meters and
was acquired at an acquisition yield of c.7.2% based on the first
year's rental income of £2.016 million. The property is fully
refrigerated and forms part of Tesco's fresh distribution network.
The property meets modern logistics requirements and is located in a
strategic position just off the A5 in Hinckley in the Golden
Triangle, which is the logistics hub in the United Kingdom. The
location provides access to a population of 37 million people
within a 3 hour heavy goods vehicle drive. There is 7.5 years
remaining on the lease with Tesco Distribution Limited, with Tesco
PLC being the guarantor in respect of the obligations of the tenant.
4. Developments
4.1. New Epping facility let
Towards the end of 2015, Equites commenced a speculative development
at 160 Gunners Circle, Epping, Cape Town. This modern 8,000 square
meter cross-docking distribution centre was completed in August 2016
and was let to an international tenant prior to completion with the
first rental due in October 2016.
4.2. Development pipeline
The Company is presently developing the Africa head office and lead
distribution centre for the global footwear and apparel company Puma.
This project is being developed at Atlantic Hills in Durbanville.
The development is expected to be completed in December 2016.
The development of a new 25,000 square metre distribution centre and
head office for Rohlig-Grindrod Proprietary Limited on land the
Company already owns in Meadowview Business Estate, Gauteng is also
progressing well and will be completed by mid 2017.
Equites has also commenced the construction of a 3,300 square meter
speculative development in Meadowview Business Estate on one of its
smaller sites, which will also house its Gauteng office.
5. Disposals
In line with the Company's strategy of focusing solely on the
logistics sector, it has commenced a process of disposing its 5
commercial office properties. The Company intends reinvesting the
proceeds of these disposals into higher growth logistics assets.
On 8 June 2016 the Company concluded agreements of sale in terms of
which its Belvedere and Execujet office buildings in Cape Town were
sold at approximately their book values. These transactions are
expected to be fully implemented by the end of the calendar year.
6. Distributable earnings
Unaudited Unaudited Audited
6 months 6 months 12 months
Reconciliation between ended ended ended
earnings, headline earnings 31 August 31 August 28 February
and distributable earnings 2016 2015 2016
(dividend declared) R'000 R'000 R'000
Earnings (profit attributable
to owners of the parent) 311 774 208 526 383 870
Adjusted for:
Fair value adjustments to
investment properties (70 747) (131 585) (138 529)
Headline earnings 241 027 76 941 245 341
Adjusted for:
Straight-lining of
leases adjustment (45 849) (16 660) (78 653)
Fair value adjustments to
financial instruments (44 569) (2 521) (4 248)
Equity-settled share-based
payment reserve 1 243 381 1 165
Antecedent dividend 671 - 37 759
Distributable earnings 152 523 58 141 201 364
Distribution per share (cents) 54.44 45.4 96.6
Headline earnings per
share (cents) 86.1 60.5 147.4
Diluted headline earnings
per share (cents) 85.8 60.3 146.9
The board declared an interim dividend of 54.44 cents per share
on 12 October 2016 for the 6 months ended 31 August 2016. This
represents a growth of 19.9% over the comparative period. The
distribution per share is based on 280 152 669 shares in issue as
at the date of the dividend declaration.
Distributable earnings (cents per share) FY17 FY16
Interim dividend 54.44 45.42
Final dividend (2017: forecast*) 55.68 51.18
Total distributions for the period 110.12 96.60
* Illustrative at the upper end of 12-14% forecast.
7. Net asset value per share
The net asset value per share of the Company grew to 1,354 cents per
share by 31 August 2016. This equates to a growth of 5% in the
6 months from 29 February 2016.
On listing
18 Jun 14 31 Aug 14 28 Feb 15
Net asset value (cents per share) 1 000 1 009 1 137
Growth since listing 0.9% 13.7%
31 Aug 15 29 Feb 16 31 Aug 16
Net asset value (cents per share) 1 259 1 294 1 354
Growth since listing 25.9% 29.4% 35.4%
8. Updated property fundamentals
8.1. Lease expiry profile
Based on
Based on contractual
Lease expiry rentable area revenue
Vacant 0.4% 0.0%
Expiry in the year to 29 February 2017 0.8% 1.1%
Expiry in the year to 28 February 2018 8.6% 6.1%
Expiry in the year to 28 February 2019 9.0% 7.0%
Expiry in the year to 29 February 2020 13.2% 13.7%
Expiry in the year to 28 February 2021 2.2% 2.6%
Expiry in the year to 28 February 2022 and later 65.8% 69.5%
100.0% 100.0%
8.2. Weighted average lease expiry
Based on
Based on contractual
Weighted average lease expiry rentable area revenue
Weighted average lease expiry (in years) 5.37 5.69
8.3. Tenant grade profile
Based on
contractual
Tenant profile revenue
A - Large nationals, large listeds and government 88.0%
B - Smaller international and national tenants 2.8%
C - Other local tenants and sole proprietors 9.3%
100.0%
8.4. Property geographic distribution
Based on
Based on contractual
Geographic profile rentable area revenue
Gauteng 51.6% 53.2%
Cape Town 40.9% 37.4%
United Kingdom 7.5% 9.5%
100.0% 100.0%
9. Funding
The Company has available term loan facilities of R2.5 billion spread
across Nedbank, Standard Bank, Rand Merchant Bank and Sanlam. The
maturities of the various facilities range from September 2016 to
July 2021. Prime linked facilities accrue interest at an average
margin of 1.52% below prime and JIBAR linked loans accrue interest
at an average margin of 2.2% above JIBAR.
Nominal
value
Variable rate loans Base rate R'000
Expiry
November 2016 Prime 202 000
September 2017* Prime 548 000
March 2019 Prime 320 000
August 2019 Prime 600 000
August 2020 Prime 450 000
July 2021 3M JIBAR 210 000
July 2021 1M JIBAR 121 102
July 2021 1M JIBAR 38 228
2 489 330
* Refinanced to September 2022 in September 2016.
Nominal
value
Interest rate swap agreements Base rate R'000
Expiry
August 2019 7.25% 100 000
September 2020 8.32% 200 000
September 2020 7.96% 250 000
September 2021 7.61% 210 000
September 2021 8.08% 100 000
860 000
Nominal
value
Cross currency swap agreements Base rate R'000
Expiry
August 2019 3M JIBAR 600 000
600 000
Nominal
value
Variable rate instruments R'000
Total interest bearing borrowings 2 147 585
Cash and cash equivalents (378 452)
1 769 133
Interest rate derivatives 860 000
Currency derivatives 600 000
Embedded derivative in prime linked lease agreement 312 278
1 772 278
Percentage hedged 100.2%
In addition to the above listed derivatives, the Company has an
embedded interest rate derivative in a prime-linked lease agreement.
The notional capital hedged by this embedded derivative is R312
million. Based on the above derivative instruments in relation to
the total outstanding interest bearing borrowings, the Company is
100.2% hedged at 31 August 2016. The Company has a policy of hedging
at least 80% of its exposure to interest rate fluctuations.
10. Vacancies
The industrial portfolio remains fully let and the vacancy rate in
the office portfolio was 7.1% at the end of the reporting period
based on rentable area. In aggregate, this represents 0.4% of the
total rentable area compared to 0.6% at 29 February 2016. The vacancy
rate in the office portfolio was reduced through the successful
conclusion of three new leases after the end of the period.
The 0% vacancy rate in the industrial portfolio was supported by a
100% tenant retention rate since listing and is indicative of the
quality and desirable locations of the Company's properties.
11. Prospects
Management continues to see robust demand to conclude further
development leases on its existing land to add to its existing
pipeline. They further believe that a limited exposure to speculative
developments in the right locations will contribute positively to
value unlocked through developments.
The Company also continues to pursue opportunities to acquire
logistics properties that meet its investment criteria and that
are expected to contribute to long-term, predictable distribution
growth.
This will be complemented by a measured diversification into United
Kingdom, which will be limited to 25% of the portfolio value in the
medium term.
The Company had previously forecast full year distribution growth
for the year ended 28 February 2017 to be 10 - 12% higher than the
previous financial year. Given the better than expected trading
performance and yield accretive acquisitions concluded in the United
Kingdom, the board now expects full year distribution growth to be
12 - 14% higher than the prior year. This guidance is based on the
assumptions that a stable macro-economic environment will prevail,
no major corporate failures will occur and tenants will be able
to absorb the recovery of rising utility costs and municipal rates.
This forecast has not been audited or reviewed by Equites' auditors.
12. Changes to the Board of Directors
Mustaq Brey (62) was appointed as a non-executive director on
26 September 2016. Mustaq Ahmed Enus-Brey BCompt (Hons), CA(SA)
is Co-Founder and Chief Executive Officer at Brimstone Investment
Corporation Limited. Following the capital raise in November 2015,
Brimstone is a significant shareholder in Equites. Mustaq is the
Chairman of Oceana Group Limited and the Chairman of Life Healthcare
Group Limited. His appointment brings a wealth of experience to the
board and the board looks forward to the valuable contribution he is
expected to make to the Company.
13. Subsequent events
13.1. Acquisition of Amazon distribution centre
As announced on SENS on 26 September 2016, Equites International
concluded an agreement with Perevil Securities Ltd. in terms of
which Equites International acquired a 20,410 square meter
distribution centre let to Amazon UK Services Limited situated at
Stanley Matthews Way, Trentham Lakes, Stoke-on-Trent. Amazon has
signed a 10 year lease which commenced on 19 July 2016.
Equites has agreed to acquire the property at an acquisition yield
of c.6.14% based on the first year's rental income of £1.044 million
excluding acquisition costs.
The property recently underwent extensive renovations and an
extension in order to meet the requirements of the tenant, Amazon
UK Services Limited. The property, which meets modern logistics
requirements, is located in the well-established Trentham Lakes
Business Park, which affords excellent road links and is situated
exactly half way between Manchester and Birmingham in the West
Midlands. The property benefits from being 4 hours' drive from 80%
of the UK population and is in the highly desirable Midlands area,
which has the highest volume of logistics demand in the UK.
13.2. Other subsequent events
Other than disclosed in this announcement, the board is not aware
of any events that have a material impact on the results or
disclosures of the Company, which have occurred subsequent to the
end of the reporting period.
14. Basis of preparation
The unaudited consolidated interim results for the 6 months ended
31 August 2016 are prepared in accordance with the JSE Listings
Requirements and the requirements of the Companies Act of South
Africa. The report is prepared in accordance with the framework
concepts and 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 to also, as a minimum, contain the
information required by IAS 34, Interim Financial Reporting. Except
for the adoption of revised and new standards that became effective
during the year, all accounting policies applied in the preparation
of these unaudited interim financial statements are in terms of IFRS
and are consistent with those applied in the previous consolidated
financial statements. There was no material impact on the annual
financial statements as a result of the adoption of these standards.
Bram Goossens (CA) SA, in his capacity as Financial Director, was
responsible for the preparation of these unaudited consolidated
interim results for the 6 months ended 31 August 2016. These
consolidated interim financial results have not been reviewed or
reported on by the Company’s auditors.
15. Interim dividend
Notice is hereby given of the declaration of interim dividend
number 6 of 54.44282 cents per share.
As Equites is a REIT, the dividend meets the definition of a
'qualifying distribution' for the purposes of section 25BB of the
Income Tax Act, No. 58 of 1962 (Income Tax Act). Qualifying
distributions received by South African tax residents will form
part of their gross income in terms of section 10(1)(k)(i)(aa) of
the Income Tax Act). Consequently, these dividends are treated as
income in the hands of the shareholders and are not subject to
dividends withholding tax. The exemption from dividends withholding
tax is not applicable to non-resident shareholders, but they may
qualify for relief under a tax treaty.
Holders of dematerialised shares have to ensure that they have
Verified their residence status with their Central Securities
Depository Participant ("CSDP") or broker. Holders of certificated
shares will be asked to complete a declaration to the Company.
An announcement with further details regarding the tax treatment of
the dividend will be released separately on SENS.
The dividend is payable to shareholders in accordance with the
timetable set out below:
2016
Declaration date Thursday, 12 October
Last day to trade cum dividend Tuesday, 1 November
Shares trade ex dividend Wednesday, 2 November
Record date Friday, 4 November
Payment date Monday, 7 November
Share certificates may not be dematerialised or rematerialized
Between Wednesday, 2 November 2016 and Friday, 4 November 2016, both
days inclusive.
In respect of dematerialised shareholders, the dividend will be
transferred to the CSDP account / broker accounts on Monday,
7 November 2016. Certificated shareholders' dividend payments will be
posted on or about Monday, 7 November 2016.
By order of the Board
Equites Property Fund Limited
12 October 2016
Condensed consolidated statement of financial position
Unaudited Unaudited Audited
Group Group Group
31 August 31 August 29 February
2016 2015 2016
R'000 R'000 R'000
ASSETS
Non-current assets
Fair value of investment property
(excluding straight-lining) 5 490 763 3 488 732 4 017 578
Straight-lining lease accrual 135 880 31 588 93 581
Property, plant and equipment 2 247 1 738 1 786
5 628 890 3 522 058 4 112 945
Current assets
Investment property reclassified
as held for sale 232 746 - -
Current tax receivable - 122 -
Trade and other receivables 47 634 4 458 62 360
Financial asset held at fair value 3 447 4 677 47 100
Cash and cash equivalents 378 452 24 456 3 962
Derivative financial assets 51 797 2 009 -
714 076 35 723 113 422
TOTAL ASSETS 6 342 966 3 557 781 4 226 367
EQUITY AND LIABILITIES
Equity and reserves
Stated capital 3 184 368 1 592 471 3 180 784
Accumulated profit 607 477 321 960 438 689
Foreign currency translation reserve (2 552) - -
Share-based payment reserve 2 609 583 1 366
Total attributable to owners 3 791 902 1 915 014 3 620 839
Non-controlling interest 73 403 - -
3 865 305 1 915 014 3 620 839
Liabilities
Non-current liabilities
Deferred tax liability 1 424 1 424 1 424
Financial liabilities 1 946 180 1 383 410 432 221
1 947 604 1 384 834 433 645
Current liabilities
Financial liabilities 201 990 145 642 94 103
Derivative financial liabilities 3 491 - -
Trade and other payables 324 576 112 291 77 780
530 057 257 933 171 883
TOTAL LIABILITIES 2 477 661 1 642 767 605 528
TOTAL EQUITY AND LIABILITIES 6 342 966 3 557 781 4 226 367
Condensed consolidated statement of comprehensive income
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 August 31 August 29 February
2016 2015 2016
R'000 R'000 R'000
Revenue
Contractual revenue and
tenant recoveries 204 062 94 988 257 026
Straight-lining of leases adjustment 45 849 16 660 78 653
249 911 111 648 335 679
Other gains 804 177 1 248
Property operating and
management expenses (40 026) (14 000) (42 454)
Net property income 210 689 97 825 294 473
Administrative expenses (9 913) (5 242) (16 973)
Operating profit 200 776 92 583 277 500
Fair value adjustments -
investment property 70 747 131 585 138 529
Fair value adjustments -
financial instruments 44 569 2 521 4 248
Foreign exchange gain 1 347 - -
Finance costs (17 606) (18 721) (40 074)
Finance income 12 328 558 3 667
Net profit before tax 312 161 208 526 383 870
Income tax expense - - -
Profit for the period 312 161 208 526 383 870
OTHER COMPREHENSIVE INCOME
Translation of foreign operations (2 552) - -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD 309 609 208 526 383 870
PROFIT ATTRIBUTABLE TO:
Owners of the parent 311 774 208 526 383 870
Non-controlling interest 387 - -
312 161 208 526 383 870
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent 309 222 208 526 383 870
Non-controlling interest 387 - -
309 609 208 526 383 870
Basic earnings per share (cents) 111.3 164.1 230.6
Diluted earnings per share (cents) 110.9 163.3 229.9
Condensed consolidated statement of cash flows
Unaudited Unaudited Audited
Group Group Group
6 months 6 months 12 months
ended ended ended
31 August 31 August 29 February
2016 2015 2016
R'000 R'000 R'000
Cash flows from operating activities
Profit before tax 312 161 208 526 383 870
Adjusted for:
Finance costs 17 606 18 721 40 074
Finance income (12 328) (558) (3 667)
Straight-lining of leases adjustment (45 849) (16 660) (78 653)
Fair value adjustments (115 316) (132 211) (138 529)
Amortisation - 105 346
Share based payment charge 1 243 382 1 165
Decrease / (Increase) in trade
and other receivables 14 726 14 502 (44 573)
Increase in trade and other payables 246 796 61 036 16 566
Cash generated from operations 419 039 153 843 176 599
Finance costs paid (26 460) (18 721) (65 484)
Finance income received 12 328 558 606
Tax paid - 91
Dividends paid (142 986) (46 782) (105 396)
Net cash flows from operating
activities 261 921 88 898 6 417
Cash flows utilised by investing activities
Acquisition of investment
properties (1 364 650) (53 225) (398 246)
Development of investment property (553 018) - -
Movement in financial instruments
held at fair value 39 915 14 993 -
Investment in financial instrument - - (180 000)
Amount including interest received
from sale of financial instrument - - 144 000
Acquisition of property, plant
and equipment (461) (3 525) (285)
Acquired minority interest 73 016 - -
Cash acquired as part of acquisition 294 890 3 191 20 807
Net cash flows utilised by investing
activities (1 510 308) (38 566) (413 725)
Cash flows from financing activities
Proceeds from share issue (net of costs) 3 584 - 1 491 268
Proceeds from bank loans 1 652 218 (29 458) 1 482 532
Bank loans repaid (399 055) - (2 566 112)
Loans acquired as part of investment
property acquisition 368 157 - -
Increase in other borrowings 525 - -
Net cash flows from financing
activities 1 625 429 (29 458) 407 688
Net movement in cash and cash
equivalents 377 042 20 874 380
Effect of exchange rate movements
in cash and cash equivalents (2 552) - -
Cash and cash equivalents at the
beginning of the period 3 962 3 582 3 582
Cash and cash equivalents at the
end of the year 378 452 24 456 3 962
Condensed consolidated statement of changes in equity
Stated Retained
capital earnings
R'000 R'000
Balance at 28 February 2015 1 140 599 160 215
Total comprehensive income - 208 526
Shares issued for property and
subsidiary acquisitions 451 872 -
Equity-settled share-based payment - -
Dividends distributed to shareholders - (46 782)
Balance at 31 August 2015 1 592 471 321 959
Balance at 31 August 2015 1 592 471 321 959
Total comprehensive income - 175 344
Shares issued for cash 1 500 000 -
Shares issued for property and subsidiary
acquisitions 97 045 -
Equity-settled share-based payment - -
Dividends distributed to shareholders - (58 614)
Share issue costs (8 732) -
Balance at 29 February 2016 3 180 784 438 689
Balance at 29 February 2016 3 180 784 438 689
Acquisition of EA Waterfall Logistics JV -
Profit after taxation - 311 774
Other comprehensive income - -
Shares issued for property and subsidiary
acquisitions 3 584 -
Equity-settled share-based payment - -
Dividends distributed to shareholders - (142 986)
Balance at 31 August 2016 3 184 368 607 477
Condensed consolidated statement of changes in equity (continued)
Foreign
currency
translation Equity
reserve reserve
R'000 R'000
Balance at 28 February 2015 - 201
Total comprehensive income - -
Shares issued for property and subsidiary acquisitions - -
Equity-settled share-based payment - 382
Dividends distributed to shareholders - -
Balance at 31 August 2015 - 583
Balance at 31 August 2015 - 583
Total comprehensive income - -
Shares issued for cash - -
Shares issued for property and subsidiary acquisitions - -
Equity-settled share-based payment - 783
Dividends distributed to shareholders - -
Share issue costs - -
Balance at 29 February 2016 - 1 366
Balance at 29 February 2016 - 1 366
Acquisition of EA Waterfall Logistics JV -
Profit after taxation - -
Other comprehensive income (2 552) -
Shares issued for property and subsidiary acquisitions - -
Equity-settled share-based payment - 1 243
Dividends distributed to shareholders - -
Balance at 31 August 2016 (2 552) 2 609
Condensed consolidated statement of changes in equity (continued)
Total Non-
attributable controlling
to parent Interest Total
R'000 R'000 R'000
Balance at 28 February 2015 1 301 015 - 1 301 015
Total comprehensive income 208 526 - 208 526
Shares issued for property and
subsidiary acquisitions 451 872 - 451 872
Equity-settled share-based payment 382 - 382
Dividends distributed to shareholders (46 782) - (46 782)
Balance at 31 August 2015 1 915 013 - 1 915 013
Balance at 31 August 2015 1 915 013 - 1 915 013
Total comprehensive income 175 344 - 175 344
Shares issued for cash 1 500 000 - 1 500 000
Shares issued for property and
subsidiary acquisitions 97 045 - 97 045
Equity-settled share-based payment 783 - 783
Dividends distributed to shareholders (58 614) - (58 614)
Share issue costs (8 732) - (8 732)
Balance at 29 February 2016 3 620 839 3 620 839
Balance at 29 February 2016 3 620 839 - 3 620 839
Acquisition of EA Waterfall
Logistics JV - 73 016 73 016
Profit after taxation 311 774 387 312 161
Other comprehensive income (2 552) - (2 552)
Shares issued for property and
subsidiary acquisitions 3 584 - 3 584
Equity-settled share-based payment 1 243 - 1 243
Dividends distributed to shareholders (142 986) - (142 986)
Balance at 31 August 2016 3 791 902 73 403 3 865 305
CONDENSED OPERATING SEGMENT INFORMATION
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 August 31 August 29 February
2016 2015 2016
R'000 R'000 R'000
Revenue
Industrial 184 146 81 294 214 777
Office 19 916 13 694 42 249
Non-property - - -
Straight-lining of leases 45 849 16 660 78 653
249 911 111 648 335 679
Operating profit
Industrial 151 646 67 471 189 305
Office 11 847 13 694 26 515
Non-property (8 566) (5 242) (16 973)
Straight-lining of leases 45 849 16 660 78 653
200 776 92 583 277 500
Total assets
Industrial 5 572 478 3 309 118 3 929 195
Office 200 912 185 932 152 529
Non-property 433 696 31 143 51 062
Straight-lining of leases 135 880 31 588 93 581
6 342 966 3 557 781 4 226 367
Administration
Directors
A Taverna-Turisan (CEO)^, GR Gous (COO), B Goossens (CFO), PL Campher*+
(Chairman), G Lanfranchi* (Deputy Chairman), AJ Gouws*, K Dreyer*, N Khan*+,
RE Benjamin-Swales*+, M Brey*
*Non-executive
+Independent
^Italian
Registered office
14th Floor
Portside Tower
4 Bree Street
Cape Town
8000
Contact details
info@equites.co.za
Company secretary
Riaan Gous
Transfer secretary
Trifecta Capital Services Proprietary Limited
Auditors
Moore Stephens Cape Town Inc.
Sponsor
Java Capital
Bankers
Nedbank Limited
Attorneys
Cliffe Dekker Hofmeyr Inc.
13 October 2016
Date: 13/10/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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