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Forecast statement of comprehensive income for 28 Feb 2017 & 2018 for proposed transfer to Main Board of the JSE
Atlantic Leaf Properties Limited
(Incorporated in the Republic of Mauritius on 11 November 2013)
(Registration number: 119492 C1/GBL)
SEM share code: ALPL.N0000
JSE share code: ALP
ISIN: MU0422N00009
www.atlanticleaf.mu
(“Atlantic Leaf” or “the Company” or “the Group”)
FORECAST STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARS ENDING 28 FEBRUARY 2017 AND 2018 ISSUED IN
ANTICPATION OF THE PROPOSED TRANSFER OF THE COMPANY’S JSE LISTING FROM THE ALTX MARKET TO THE MAIN BOARD
Atlantic Leaf currently holds primary listings on both the Stock Exchange of Mauritius Ltd (“SEM”) and the
Alternative Exchange (“AltX”) of the JSE. The Company intends transferring its JSE listing from the AltX
to the Main Board of the JSE, subject to JSE approval.
In order to transfer its listing to the Main Board of the JSE, the Company is required, in terms of the JSE
Listings Requirements, to publish a forecast statement of comprehensive income for the current financial
year ending 28 February 2017 and the financial year ending 28 February 2018.
The purpose of this announcement is to present such forecast statement of comprehensive income, including
the notes thereto (the “Forecast”). The Forecast was reported on by Mazars (South Africa), who have issued
an unmodified independent reporting accountants’ report (the “Report”). The Forecast and Report have
been published and are available on the Company’s website at www.atlanticleaf.mu/investors/announcements/.
Alternatively, they are available for inspection at the Company’s registered office being at c/o Intercontinental
Trust Ltd, Level 3, Alexander House, 35 Cybercity, Ebene 72201, Mauritius. Mazars (South Africa) has consented
in writing to act as reporting accountant and has not withdrawn their consent prior to the publication of this
announcement.
The Forecast, including the assumptions on which it is based and the financial information from which it is
prepared, are the responsibility of the directors. The Forecast has been prepared in compliance with IFRS,
JSE Listings Requirements and in accordance with Atlantic Leaf’s accounting policies. The Forecast is in
line with the guidance given by the directors in the abridged audited financial statements published on the
12 April 2016.
Atlantic Leaf will publish a further announcement confirming JSE formal approval and the date of the
Company’s transfer to the Main Board of the JSE.
FORECAST STATEMENT OF COMPREHENSIVE INCOME
Group Group
Forecast Forecast
Year Year
ending ending
28-Feb-2017 28-Feb-2018
GBP GBP
Rental revenue 19 713 685 19 959 605
Straight-line lease income adjustment 1 293 510 1 243 529
Revenue 21 007 195 21 203 134
Property operating expenses (848 286) (840 206)
Net property income 20 158 909 20 362 928
Other operating expenditure (2 394 403) (1 908 736)
Net property income 17 764 506 18 454 192
Investment income 159 446 41 120
Fair value adjustments (1 234 435) (1 243 529)
Fair value adjustments relating to investment properties (1 293 510) (1 243 529)
Other fair value adjustments 59 075 -
Finance Costs (4 343 473) (4 374 529)
Profit before taxation 12 346 044 12 877 254
Taxation (1 727 382) (1 793 353)
Profit for the year 10 618 662 11 083 901
Add back:
Fair value adjustments to investment properties 1 293 510 1 243 529
Headline earnings 11 912 172 12 327 430
Less:
Straight-line lease income adjustment (1 293 510) (1 243 529)
Adjusted for once-off costs
Transaction costs 414 489 -
Adjusted headline earnings 11 033 151 11 083 901
Weighted average number of shares in issue 123 882 814 123 882 814
Basic and diluted earnings per share (GBP pence) 8.57 8.95
Basic and diluted headline earnings per share (GBP pence) 9.62 9.95
Forecast distribution per share (GBP pence) 8.50 8.90
Notes and assumptions
The forecast statement of comprehensive income incorporates the following material assumptions in respect
of revenue and expenses that can be influenced by the directors:
- Atlantic Leaf's management forecasts for the years ending 28 February 2017 and 2018 are based on
information derived from the property managers and asset managers engaged with the portfolio as well
as historical information.
- No further acquisitions or disposals are included, other than those already undertaken at the time the
forecast was prepared (which were disclosed in the 28 February 2016 financial statements as post
balance sheet events).
- Contracted revenue is based on existing lease agreements. This accounts for 98.9% and 98.7% of rental
income for the years ending 28 February 2017 and 2018 respectively.
- All of the leases are full repairing and insuring leases and therefore no material property related expenses
have been recognised.
- Uncontracted revenue amounts to 1.1% and 1.3% of rental income for the years ending
28 February 2017 and 2018 respectively and relates to contract increases still to be formally concluded
on existing leases. These contractual increases have been based on the minimum contractual rental
uplifts as per the lease agreement or confirmed rental uplifts that have been agreed with the tenant but
not yet signed.
- None of Atlantic Leaf's lease agreements are based on turnover rental. Rental income is based on the
actual leases with the tenant.
- Investment revenue is non-rental revenue and consists of interest on a loan provided to Atlantic
Properties Investments Limited (2017: c£112,500/ 2018: Nil), dividend income from the investment in
listed securities (2017: c£35,000/ 2018: c£29,000) and interest on cash (2017 & 2018: c£12,000).
- There are no expiring leases and no near-contracted revenue in both forecast years mentioned.
- Property operating expenses have been forecast based on management’s review of historical expenditure
and discussions with the property and asset managers.
- Material expenditures includes finance costs of £4.3m in 2017 and £4.4m in 2018, management fees of
£1.3m in both 2017 and 2018 (disclosed under Other Operating Expenditure) and head rents of £0.65m
in both 2017 and 2018 (disclosed under Property Operating Expenses).
- A large proportion of the investment properties purchased were purchased in the second half of the prior
year and therefore the forecast expenses for finance costs and management fees have increased in direct
relation to the increase in the rental income. This has resulted in increases in the material expenditures
items of finance costs and management fees amounting to 71.8% and 111.9% respectively for the first
forecast financial year ended 28 February 2017, compared to that disclosed in the 28 February 2016
audited results.
- The properties have been held at fair market value at 28 February 2016 ("FY16"). Properties acquired
during the forecast year that are assessed as Investment properties are initially recorded at cost including
costs directly attributable to the acquisition.
- Other than to remove the effect of the straight-line adjustment on the carrying value of the investment
property, no fair value adjustments to the properties have been provided for in the profit forecast as
management does not consider it useful to predict valuation movements.
- The profit forecast has been compiled on an aggregated basis, utilising the accounting policies of
Atlantic Leaf as set out in its audited annual financial statements for the year ended 28 February 2016,
which are available for inspection at the registered office being at c/o Intercontinental Trust Ltd, Level 3,
Alexander House, 35 Cybercity, Ebene 72201, Mauritius and is available on the Company’s website,
www.atlanticleaf.mu.
- The forecast distribution per share will be determined annually by the directors but is based on the basic
and diluted earnings per share for each forecast year, after rounding down the distribution by not more
than 1%.
The forecast statement of comprehensive income incorporates the following material assumptions in respect
of revenue and expenses that cannot be influenced by the directors:
- There will be no unforeseen economic factors that will affect the lessees' ability to meet their
commitments in terms of existing lease agreements.
- No foreign exchange rates have been assumed. The functional and presentation currency is GBP.
- No cost inflation has been assumed.
- Tax comprises mainly of UK Non-resident landlord tax.
- No changes to taxation rates or regulations have been assumed in any of the jurisdictions.
- No assumptions for movements in interest rates have been made. The interest rates on the majority of
Atlantic Leaf's borrowings are fixed using interest rate derivatives.
Atlantic Leaf currently has primary listings on both the Official Market of the SEM and the AltX of the JSE.
By Order of the Board
For further information please contact:
South African JSE sponsor
Java Capital +27 11 722 3050
South African corporate advisor
Leaf Capital +27 21 657 1180
Corporate secretary
Intercontinental Trust Limited +230 403 0800
SEM authorised representative and sponsor
Perigeum Capital Ltd +230 402 0890
17 October 2016
This notice is issued pursuant to the JSE Listings Requirements, the SEM Listing Rule 11.3 and the
Mauritian Securities Act 2005.
The Board of Directors of Atlantic Leaf Properties Limited accepts full responsibility for the accuracy of the
information contained in this announcement.
Date: 17/10/2016 10:45:00 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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