Wrap Text
Unaudited Abridged Consolidated Interim Financial Statements For The Three Months Ended 30 September 2016
Mara Delta Property Holdings Limited
(previously Delta Africa Property Holdings Limited)
(Registered by continuation in the Republic of Mauritius)
(Registration number 128881 C1/GBL)
SEM share code: DEL.N0000
JSE share code: MDP ISIN: MU0473N00028
("Mara Delta" or "the Company" or "the Group")
Unaudited abridged consolidated interim financial statements
for the three months ended 30 September 2016 (the "financial statements")
Highlights
Gross income increased by 49.3%
On track to meet forecast distribution
WACD - 5.65% (2016: 6.22%)
Occupancy 98% (2016: 91%)
Hard currency denominated rentals - 87%
DIRECTORS' COMMENTARY
NATURE OF THE BUSINESS
Mara Delta is a pan African property income fund focusing on African real estate assets (excluding
South Africa), underpinned by predominantly US Dollar denominated medium- to long-term leases
with high quality counterparties delivering sustainable returns. Listed in July 2014, the Company
holds dual primary listings on the Official market of the Stock Exchange of Mauritius Limited ("SEM")
and on the main board of the JSE Limited ("JSE").
The Group's strategy remains to expand its property portfolio throughout targeted countries in
Africa, with assets that will provide sustainable long term, hard currency based income from high
quality counterparties with a core focus on enhancing shareholder value and dividend yield.
The Group has focused on risk mitigants in relation to the target countries to ensure the resilience
of the portfolio to any macro-economic uncertainties. This is demonstrated by the delivery of the dividend
forecast and the payment thereof.
REVIEW
Results
The Company forecasted growth on distribution of 2% to 4%, which is on target to be delivered.
The calculated distribution for the period 1 July 2016 to 30 September 2016 falls within the
forecast on the previous year's full year distribution of US$11.75 cents per share.
Rental income together with income from associates has increased 49.3% versus the first quarter
of the 2016 financial year on the back of asset acquisitions in the latter half of the previous financial
year. The rental income increase included the impact of the US Dollar-based rental escalations.
Operating costs were maintained at expected levels and the Operating cost percentage decreased
to 24.3% for the first quarter of the 2017 financial year from 25.7% for the 2016 financial year.
The Company continues to make significant progress in reducing its cost of borrowings with the
weighted average cost of debt decreasing to 5.65% for the three months ended 30 September 2016
(year ended 30 June 2016: 6.22%). The Company's loan to value ratio at 30 September 2016 was
49.58%, up from 48.85% reported in June 2016.
Despite the economic and liquidity challenges that Mozambique is currently facing, Mara Delta's
assets are performing as expected with no material movement in vacancies or arrears. The Company
remains confident about the long-term growth prospects in Mozambique.
Vacancies
Portfolio vacancies have reduced significantly with an overall portfolio vacancy of 2% as
at 30 September 2016 versus an overall portfolio vacancy of 9% reported for the 2016 financial year.
The primary contributor to this low vacancy percentage remains Anfa Place Shopping Centre which
holds strategic vacancies due to a pending upgrade of the Centre. Amongst the new tenants
secured is LC Waikiki, an international Turkish clothing brand which entered into Heads of Agreement for
1,337sqm of GLA, with occupation due in February 2017.
Portfolio vacancy excluding Anfa Place Shopping Centre is 0.29%.
SUBSEQUENT EVENTS
a) On 3 October 2016, Mara Delta has paid distribution of US$5.58 cents per share. This took the
full year distribution of the 2016 financial year to a total of US$11.75 cents per share, a growth of
4.13% growth on 2015's distribution.
b) Mara Delta has signed a binding sale agreement with Néréide Limited ("Néréide)"), being a
wholly-owned subsidiary of Lux Island Resorts Limited("LUX"), for the acquisition of the
Tamassa Resort (located, in Bel Ombre, Mauritius), for a total consideration of
the Euro equivalent of US$40.0 million. Approval from the Board of Investment of Mauritius
was obtained during October 2016 with the approval of the Prime Minister's office expected during November 2016.
Subsequent to the sale, the Property will be leased back to Néréide guaranteed by LUX, for an initial period of 10 years.
The Euro denominated lease agreement will be on a triple net basis. There will be no operational risk assumed on the hotel.
c) Mara Delta entered into negotiations with New Mauritius Hotels Limited ("NMH") for the
acquisition of a 45% interest in an entity owning three hotel assets in Mauritius namely Le Victoria,
Le Canonnier and Le Mauricia. This transaction will be on a sale and leaseback basis, no operational
risk will be assumed and will generates Euro denominated earnings from a 15 year triple net lease from NMH.
d) Mara Delta (via two wholly-owned subsidiaries namely Warehousely Limited and Mara Viwandani Limited) has
agreed to acquire the Imperial Health Sciences logistics warehouse in Nairobi, Kenya. The facility will be leased
back to Imperial on a 10 year triple net basis, denominated in USD and guaranteed by Imperial Holdings Limited.
The total purchase price is US$16.88 million for the warehouse and US$2.99 million for the vacant land.
e) The Vale accommodation compound in Tete, Mozambique and the Cosmopolitan Mall in Lusaka,
Zambia are awaiting transfer pending regulatory approvals.
f) Mara Delta is in the process of obtaining shareholders' approval to allot and issue a maximum of
125,513,408 additional ordinary shares at a minimum price of US$1.54 per share.
The proceeds of this capital raise will be utilised to close the abovementioned acquisitions.
OUTLOOK
After the first quarter the board remains confident of the forecasted distribution growth of 2% to 4%
in US Dollars and the ability to convert on the yield accretive pipeline of US$168.3.
Even though Mozambique faces macro-economic challenges our portfolio is proving to be resilient to
these challenges due to the strength of the underlying tenant base.
Any forecast included above has been based on the assumption, of stable regional, political and
economic environments as well as a stable global macro-economic environment.
This forecast is the responsibility of the Mara Delta Board and has not been reviewed or reported on
by the auditors of the Company.
Unaudited Audited Unaudited
for the for the for the
quarter year quarter
ended ended ended
30 September 30 June 30 September
CONSOLIDATED STATEMENT OF 2016 2016 2015
COMPREHENSIVE INCOME $ $ $
Gross rental income 5,703,841 20,878,458 5,560,233
Straight-line rental income accrual 481,833 2,217,399 576,908
Revenue 6,185,674 23,095,857 6,137,141
Income from associates 1,984,547 3,219,866 -
Property operating expenses (1,535,557) (5,769,024) (938,799)
Net property income 6,634,664 20,546,699 5,198,342
Other income 617,001 2,933,782 604,528
Administrative expenses (1,468,620) (3,856,608) (562,292)
Profit from operations 5,783,045 19,623,873 5,240,578
Acquisition fees (146,992) (990,338) (537,412)
Set-up and merger costs (30,397) (848,462) -
Fair value adjustment on investment property (47,548) (3,759,543) 1,274,205
Fair value adjustment on financial instruments 39,998 (99,198) (479,533)
Gain from bargain purchase - 250,515 -
Foreign currency gains/(losses) 29,306 2,763,774 (487,925)
Profit before interest and taxation 5,627,412 16,940,621 5,009,913
Interest income 119,225 170,158 480
Finance costs (1,778,684) (9,698,267) (2,308,920)
Profit for the quarter/year before tax 3,967,953 7,412,512 2,701,473
Current tax expense (835,313) (1,493,959) (573,852)
Deferred tax expense 1,211,518 (3,944,764) (314,194)
Profit for the quarter/year after tax 4,344,158 1,973,789 1,813,427
Other comprehensive income
(Loss)/profit on translation of functional currency (34,087) 783,491 (1,498,489)
Total comprehensive income 4,310,071 2,757,280 314,938
Reconciliation of basic earnings and headline
earnings
Basic earnings 4,344,158 1,973,789 1,813,427
Fair value adjustments on investment property 47,548 3,759,543 (1,274,205)
Gain from bargain purchase - (250,515) -
Share of fair value adjustment on investment
property accounted by associate - (1,418,401) -
Fair value adjustment on financial instruments (39,998) 99,198 479,533
Headline earnings/(loss) attributable to
shareholders 4,351,708 4,163,614 1,018,755
Number of shares in issue at interim 100,061,130 81,785,009 73,656,446
Number of shares in issue at quarter/year-end 100,706,571 100,061,130 -
Weighted average number of shares 100,341,757 81,725,430 73,656,446
Earnings per share
Basic and diluted earnings per share (cents) 4.33 2.42 2.46
Headline diluted earnings/(loss) per share (cents) 4.34 5.09 1.38
Unaudited
As at As at as at
30 September 30 June 30 September
CONSOLIDATED STATEMENT OF 2016 2016 2015
FINANCIAL POSITION $ $ $
Assets
Non-current assets
Investment property 251,963,700 248,545,665 222,544,519
Fair value of property portfolio 246,755,977 243,705,971 219,347,391
Straight-line rental income accrual 5,207,723 4,839,694 3,197,128
Property, plant and equipment 789,696 803,240 107,655
Investments in associates 47,072,630 45,945,339 -
Intangible assets 5,575,562 5,699,199 29,828
Related party loans - 978,277 -
Deferred tax 7,025,055 5,984,142 -
Total non-current assets 312,426,643 307,955,862 222,682,002
Current assets
Trade and other receivables 20,038,550 18,101,466 17,374,020
Cash and cash equivalents 7,663,609 17,771,821 16,292,470
Total current assets 27,702,159 35,873,287 33,666,490
Total assets 340,128,802 343,829,149 256,348,492
Equity and liabilities
Total equity attributable to equity holders
Share capital 173,060,368 171,995,298 127,956,113
Foreign currency translation reserve (35,985) (1,898) (2,283,878)
Antecedent dividend reserve - 635,547 -
Retained loss (9,896,220) (9,256,498) (4,370,390)
Total equity attributable to equity holders 163,128,163 163,372,449 121,301,845
Liabilities
Non-current liabilities
Interest-bearing borrowings 111,148,224 127,070,183 48,920,933
Deferred tax 665,041 835,646 929,744
Total non-current liabilities 111,813,265 127,905,829 49,850,677
Current liabilities
Interest-bearing borrowings 44,600,000 34,548,386 73,831,819
Trade and other payables 11,346,980 15,029,155 10,380,706
Related party loans 1,365,000 1,365,000 -
Shareholders for dividend 5,613,322 - -
Withholding tax payable 21,147 33,180 -
Current tax payable 1,469,649 1,020,938 503,912
Financial instruments 319,334 554,212 479,533
Cash and cash equivalents 451,942 - -
Total current liabilities 65,187,374 52,550,871 85,195,970
Total liabilities 177,000,639 180,456,700 135,046,647
Total equity and liabilities 340,128,802 343,829,149 256,348,492
Net asset value per share (cents) 161.98 163.27 164.69
Net asset value per share (excluding deferred
taxation) (cents) 155.67 158.13 165.95
Unaudited Unaudited
for the Audited for the
quarter for the quarter
ended year ended ended
30 September 30 June 30 September
CONSOLIDATED STATEMENT OF 2016 2016 2015
CASH FLOWS $ $ $
Dividends paid - (8,469,704) (3,423,234)
Net cash generated from operating activities (2,037,414) 9,625,298 3,205,627
Net cash utilised in investing activities (3,706,773) (62,116,830) (10,806,291)
Net cash (utilised in)/generated from financing
activities (4,815,967) 72,510,166 21,093,477
Net movement in cash and cash equivalents (10,560,154) 11,548,930 10,069,579
Cash at the beginning of the quarter/year 17,771,821 6,222,891 6,222,891
Total cash at the end of the year 7,211,667 17,771,821 16,292,470
Unaudited Audited Unaudited
as at as at as at
30 September 30 June 30 September
CONDENSED CONSOLIDATED 2016 2016 2015
SEGMENTAL ANALYSIS US$ US$ US$
Profit for the period before tax
Morocco 323,616 (4,296,926) 1,107,218
Mozambique 3,760,435 12,325,295 1,797,836
Zambia 1,751,517 2,638,296 -
Kenya (11,983) 238 -
Mauritius (1,855,632) (3,254,391) (203,581)
3,967,953 7,412,512 2,701,473
Total assets
Morocco 114,722,085 114,297,213 119,712,498
Mozambique 142,270,432 148,641,297 135,169,592
Zambia 45,820,476 44,656,394 -
Kenya 4,517,036 4,529,018 -
Mauritius 32,798,773 31,705,227 1,466,402
340,128,802 343,829,149 256,348,492
Foreign Retained
CONSOLIDATED currency Antecedent earnings/ Total
STATEMENT OF Share translation dividend (Revenue equity
CHANGES IN capital reserve reserve deficit) holders
EQUITY $ $ $ $ $
GROUP
Balance as at 1 July 2015 127,958,794 (785,389) - (2,760,583) 124,412,822
Profit for the year - - - 1,973,789 1,973,789
Foreign currency
translation reserve
movement - 783,491 - - 783,491
Dividends paid - - - (8,469,704) (8,469,704)
Shares issued 44,830,306 - - - 44,830,306
Transfer from share issues (635,547) - 635,547 - -
Balance as at
30 June 2016 171,995,298 (1,898) 635,547 (9,256,498) 163,372,449
Profit for the quarter - - - 4,344,158 4,344,158
Dividends paid - - (635,547) (4,983,880) (5,619,427)
Foreign currency
translation reserve
movement - (34,087) - - (34,087)
Shares issued 1,064,978 - - - 1,064,978
Share issue expenses 92 - - - 92
Transfer from share issues - - - - -
Balance as at
30 September 2016 173,060,368 (35,985) - (9,896,220) 163,128,163
NOTES
The Group is required to publish interim reports in accordance with the Listing Rule 12.19 of the SEM.
Accordingly, this announcement presents the financial results of the Group in respect of the three-
month period from 1 July 2016 to 30 September 2016.
The accounting policies which have been applied are consistent with those used in the preparation
of the audited financial statements for the year ended 30 June 2016.
The financial statements for the three months ended 30 September 2016 have been prepared in
accordance with the measurement and recognition requirements of IFRS, the requirements of
IAS 34: Interim Financial Reporting, the SEM Listing Rules, the JSE Listings Requirements and the
Securities Act of Mauritius 2005.
The financial statements have not been reviewed or reported on by the Group's external auditors.
These financial statements were approved by the Board on 10 November 2016. Copies of the
financial statements and the statement of direct and indirect interests of each officer of the Group,
pursuant to rule 8(2)(m) of the Securities (Disclosure Obligations of Reporting Issuers) Rules of
Mauritius 2007, are available free of charge, upon request at the Company's registered address.
Contact person: Mr Kesaven Moothoosamy.
By order of the board
10 November 2016
JSE sponsor and corporate adviser SEM authorised representative
to Mara Delta and sponsor to Mara Delta
PSG CAPITAL Perigeum Capital
Directors: Sandile Nomvete (chairman), Bronwyn Corbett*, Peter Todd (lead independent),
Maheshwar Doorgakant, Chandra Gujadhur, Ian Macleod, Leon van de Moortele*, Ashish
Thakkar, Jaqueline van Niekerk and David Savage (*executive directors)
Company secretary: Intercontinental Fund Services Limited
Registered address: c/o Intercontinental Fund Services Limited, Level 5, Alexander House,
35 Cybercity, Ebène, 72201, Mauritius
Transfer secretary (South Africa): Computershare Investor Services Proprietary Limited
Registrar and transfer agent (Mauritius): Intercontinental Secretarial Services Limited
Corporate advisor and JSE sponsor: PSG Capital Proprietary Limited
Sponsoring broker: Capital Markets Brokers Limited
SEM authorised representative and sponsor: Perigeum Capital Limited
www.maradelta.com
This communiqué is issued pursuant to SEM Listing Rules 11.3 and 12.20 and section 88 of
the Securities Act of Mauritius 2005. The Board accepts full responsibility for the accuracy of
the information contained in this communique. The directors are not aware of any matters or
circumstances arising subsequent to the quarter ended 30 September 2016 that require any
additional disclosure or adjustment to the financial statements.
Date: 11/11/2016 08:00:00 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.
Sharenet Sites 
