Wrap Text
Reviewed provisional condensed consolidated results for the year ended 28 February 2017
DELTA PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
Share code: DLT
ISIN: ZAE000194049
("Delta" or "the Fund" or "the Group")
(REIT status approved)
Reviewed provisional condensed consolidated results for the year ended 28 February 2017
- Increased year-end distribution by 7.1% to 97.24 cents per share
- Reduced gearing to 41.5% from 47.2% at 29 February 2016
- Successfully refinanced R1.2 billion in debt
- Renewed 100 364m2 of gross lettable area
- Vacancy of 9.1% below the SAPOA national average of 11.1%
Condensed Consolidated Statement of comprehensive income
Group Company
2017 2016 2017 2016
R’000 R’000 R’000 R’000
Revenue
Contractual rental income 1 612 481 1 220 632 1 557 344 1 150 047
Straight-line rental income accrual 4 863 26 950 4 432 30 396
1 617 344 1 247 582 1 561 776 1 180 443
Property operating expenses (464 003) (322 051) (455 703) (312 737)
Net property rental and related income 1 153 341 925 531 1 106 073 867 706
Other income 6 215 7 266 6 027 7 286
Dividend income - - 80 798 105 912
Gain/(loss) on foreign exchange differences 20 336 (57 834) 20 336 (57 834)
Administration expenses (68 169) (82 744) (66 649) (82 042)
Net operating profit 1 111 723 792 219 1 146 585 841 028
Fair value adjustments (34 887) 259 124 (49 904) 230 783
Profit from operations 1 076 836 1 051 343 1 096 681 1 071 811
Finance costs (470 580) (412 713) (470 578) (412 972)
Interest income 27 168 26 593 54 930 49 514
Share of profit in associate 1 526 33 537 - -
Impairment of investment in associate - - (80 586) -
Cancellation fee - (11 542) - (11 542)
Share of loss in joint venture - (2) - -
Profit before taxation 634 950 687 216 600 447 696 811
Taxation - - - -
Profit for the year from continuing operations 634 950 687 216 600 447 696 811
Loss from discontinued operations - (38 089) - -
Profit for the year 634 950 649 127 600 447 696 811
Other comprehensive income:
Items that may be reclassified subsequently
to profit or loss
Exchange gain on translation of foreign subsidiary - 83 649 - -
Reclassification of foreign currency translation
reserve on loss of control of subsidiary - (43 843) - -
Share of foreign currency translation reserve
of associates 44 150 (43 796) - -
Taxation related to components of other
comprehensive income - - - -
Total comprehensive income for the year 679 100 645 137 600 447 696 811
Profit for the year attributable to:
Owners of the parent
Profit for the year from continuing operations 634 950 687 216 600 447 696 811
Loss for the year from discontinued operations - (36 011) - -
634 950 651 205 600 447 696 811
Non controlling interest:
Loss for the year from discontinued operations - (2 078) - -
634 950 649 127 600 447 696 811
Total comprehensive income attributable to:
Owners of the parent 679 100 607 409 600 447 696 811
Non-controlling interest - 37 728 - -
679 100 645 137 600 447 696 811
Reconciliation Of Earnings, Headline Earnings And Distributable Earnings
Group
2017 2016
R’000 R’000
Profit for the period from continuing operations
attributable to owners of the parent 634 950 687 216
Loss for the period from discontinued operations
attributable to owners of the parent - (36 011)
Profit for the period attributable to equity shareholders 634 950 651 205
Headline earnings - continuing operations
Profit for the period from continuing operations 634 950 687 216
Change in fair value of investment property 103 922 (373 286)
Fair value loss/(gain) of investment property 43 817 (304 200)
Fair value loss/(gain) of investment property of associate 60 105 (69 086)
Headline earnings from continuing operations 738 872 313 930
Headline earnings - continuing and discontinued operations
Profit for the period from continuing and discontinued operations 634 950 651 205
Change in fair value of investment property 103 922 (373 286)
Fair value loss/(gain) of investment property 43 817 (304 200)
Fair value loss/(gain) of investment property of associate 60 105 (69 086)
Headline earnings from continuing and discontinued operations 738 872 277 919
Headline earnings from continuing operations 738 872 313 930
Unrealised (gain)/loss on derivative financial instruments (8 930) 45 076
Straight-line rental income accrual (net of deferred taxation) (4 863) (26 950)
Antecedent interest - 9 010
Cancellation fee - 11 542
Dividend income 37 990 36 779
Share of profit in associate (1 526) (33 537)
Share of loss in joint venture - 2
Unrealised foreign exchange (gain)/loss (20 336) 57 795
Amortisation of debt structuring fee - 6 141
Change in fair value of investment property of associate (60 105) 69 086
Distributable earnings attributable to owners of the parent 681 102 488 874
Less: distribution declared 677 724 487 962
Interim 313 119 232 608
Final (declared after 28 February 2017) 364 605 255 354
Retained distribution 3 378 912
Weighted average number of shares in issue
In issue at the beginning of the year 533 097 436 458 409 836
Shares issued 160 941 759 76 905 629
Share buy-back - (4 021 829)
Deferred consideration shares allocated 15 491 667 3 889 216
Weighted average number of shares in issue 709 530 862 535 182 853
Actual number of shares in issue
Number of shares in issue at interim 681 722 806 542 316 733
Number of shares in issue at year-end 710 632 182 533 097 436
Basic and diluted earnings per share
Basic and diluted earnings per share from
continuing operations 89.49 128.41
Basic and diluted earnings per share from
discontinued operations - (6.73)
89.49 121.68
Basic and diluted headline earnings per share
Basic and diluted headline earnings per share from
continuing operations 104.14 58.66
Basic and diluted headline loss per share from
discontinued operations - (6.73)
104.14 51.93
Distribution per share (cents)
Distribution per share - interim 45.93 42.89
Distribution per share - final (declared after 28 February 2017) 51.31 47.90
97.24 90.79
Condensed Consolidated Statement of financial position
Group Company
2017 2016 2017 2016
R’000 R’000 R’000 R’000
Assets
Non current assets
Investment property 10 053 921 8 684 700 9 793 123 8 431 398
Fair value of investment property 9 861 449 8 500 183 9 600 791 8 247 733
Straight-line rental income accrual 192 472 184 517 192 332 183 665
Property, plant and equipment 3 302 4 331 3 302 4 331
Investment in subsidiaries - - 62 273 62 273
Investment in joint venture - - 2 2
Investment in associate 391 013 383 327 429 587 510 173
Loans due from subsidiaries - - 405 152 376 404
Derivative financial instruments 35 13 401 35 13 401
10 448 271 9 085 759 10 693 474 9 397 982
Current assets
Loans due from related parties 108 483 77 115 108 483 77 115
Current tax receivable 1 153 1 153 - -
Trade and other receivables 276 091 252 938 256 400 233 029
Derivative financial instruments 1 721 545 1 721 545
Cash and cash equivalents 196 115 187 362 194 372 186 416
583 563 519 113 560 976 497 105
Non-current assets held-for-sale 1 327 500 1 410 481 1 101 700 1 199 381
Total assets 12 359 334 11 015 353 12 356 150 11 094 468
Equity
Share capital 4 845 248 3 450 593 4 845 248 3 450 593
Reserves 139 779 215 924 139 425 259 720
Retained income 2 056 589 1 990 112 2 056 438 2 024 464
Total equity 7 041 616 5 656 629 7 041 111 5 734 777
Liabilities
Non current liabilities
Derivative financial instruments 29 623 49 981 29 623 49 981
Interest bearing borrowings 4 112 646 3 560 275 4 112 646 3 560 275
Loans due to subsidiaries - - 4 190 4 490
Cash-settled share-based payment arrangement - 559 - 559
4 142 269 3 610 815 4 146 459 3 615 305
Current liabilities
Interest bearing borrowings 986 581 1 534 035 986 581 1 534 035
Trade and other payables 121 823 102 233 114 954 98 710
Derivative financial instruments 23 768 30 032 23 768 30 032
Bank overdraft 43 277 81 609 43 277 81 609
1 175 449 1 747 909 1 168 580 1 744 386
Total liabilities 5 317 718 5 358 724 5 315 039 5 359 691
Total equity and liabilities 12 359 334 11 015 353 12 356 150 11 094 468
Condensed Consolidated Statement of cash flows
Group Company
2017 2016 2017 2016
R’000 R’000 R’000 R’000
Cash generated from operations 1 016 482 827 846 967 411 788 418
Interest received 7 823 10 227 35 584 33 148
Dividend received 18 851 36 837 60 159 105 912
Finance costs (482 090) (374 449) (482 090) (374 708)
Dividends paid (568 473) (470 854) (568 473) (470 854)
Net cash from operating activities (7 407) 29 607 12 591 81 916
Purchase of property, plant and equipment (260) (4 449) (260) (4 449)
Acquisition of investment properties (60 300) (801 449) (60 300) (801 449)
Capital expenditure (202 965) (304 073) (196 217) (303 266)
Proceeds on disposal of investment properties 268 500 104 859 268 500 104 859
Loans repaid/(advanced) to related parties 18 634 (77 115) 18 634 (77 115)
Loans advanced to subsidiaries - - (27 543) (53 430)
Acquisition of shares in associate - (9 123) - (9 123)
Acquisition of shares in joint venture - (2) - (2)
Net cash from investing activities 23 609 (1 091 352) 2 814 (1 143 975)
Proceeds from issue of shares - 703 376 - 703 376
Share buy-back - (98 254) - (98 254)
Capital issue expenses (604) (15 514) (604) (15 514)
Proceeds from loans with subsidiaries - - - 1 002
Increase in interest-bearing borrowings 418 800 1 376 946 418 800 1 376 946
Repayment of interest-bearing borrowings (387 313) (859 765) (387 313) (859 765)
Net cash from financing activities 30 883 1 106 789 30 883 1 107 791
Net movement in cash and cash equivalents 47 085 45 044 46 288 45 732
Cash at the beginning of the year 105 753 60 709 104 807 59 075
Total cash at the end of the year 152 838 105 753 151 095 104 807
Condensed Consolidated Statement of changes in equity
Foreign
currency Non-
Share translation Deferred Retained controlling Total
capital reserve consideration income interest equity
R'000 R'000 R'000 R'000 R'000 R'000
Group
Balance at 1 March 2015 2 778 064 27 185 - 1 815 732 453 190 5 074 171
Total comprehensive income for the year - (43 796) - 651 205 37 728 645 137
Profit for the year - - - 651 205 (2 078) 649 127
Other comprehensive income - (43 796) - - 39 806 (3 990)
Loss of control of subsidiary - (27 185) - - (490 918) (518 103)
Issue of shares - issued as consideration
for investment property 76 950 - - - - 76 950
Issue of shares - issued as consideration
for cash 658 169 - - - - 658 169
Issue of shares - dividend reinvestment
programme 45 207 - - - - 45 207
Capital issue expenses (15 514) - - - - (15 514)
Share capital not eliminated in prior period 5 971 - - (5 971) - -
Share buy-back (98 254) - - - - (98 254)
Deferred consideration raised - - 259 720 - - 259 720
Distributions paid - - - (470 854) - (470 854)
Balance at 1 March 2016 3 450 593 (43 796) 259 720 1 990 112 - 5 656 629
Total comprehensive income for the year - 44 150 - 634 950 - 679 100
Profit for the year - - - 634 950 - 634 950
Other comprehensive income - 44 150 - - - 44 150
Issue of shares - issued as consideration
for investment property 1 255 834 - - - - 1 255 834
Capital issue expenses (604) - - - - (604)
Deferred consideration settled
- issue of shares 139 425 - (139 425) - - -
Deferred consideration raised - - 19 130 - - 19 130
Distributions paid - - - (568 473) - (568 473)
Balance at 28 February 2017 4 845 248 354 139 425 2 056 589 - 7 041 616
Condensed Consolidated Segmental Analysis
Administration
Office Office and corporate
Retail government other Industrial costs Total
R'000 R'000 R'000 R'000 R'000 R'000
Group 2017
Contractual rental income 71 198 1 265 981 216 403 21 895 37 004 1 612 481
Straight-line rental income accrual (2 001) 6 830 (278) 312 - 4 863
Property operating expenses (27 823) (294 536) (76 792) (6 959) (57 893) (464 003)
Net property rental and related income 41 374 978 275 139 333 15 248 (20 889) 1 153 341
Fair value adjustments to:
Fair value (loss)/gain to
investment property 40 239 33 874 (74 826) 9 548 (52 652) (43 817)
Unrealised gain on derivative
financial instruments - - - - 8 930 8 930
Assets
Investment property - fair value 439 242 8 185 019 1 237 188 - - 9 861 449
Non-current assets held-for-sale - 900 400 269 100 158 000 - 1 327 500
Straight-line rental income accrual 9 295 172 693 10 484 - - 192 472
Other assets 23 650 301 417 (64 757) 1 243 716 360 977 913
Total assets 472 187 9 559 529 1 452 015 159 243 716 360 12 359 334
Total liabilities 339 641 73 382 15 244 1 632 4 887 819 5 317 718
Group 2016
Contractual rental income 87 875 912 667 201 134 18 956 - 1 220 632
Straight-line rental income accrual 10 051 22 363 671 (6 134) - 26 950
Property operating expenses (31 060) (213 658) (71 453) (5 880) - (322 051)
Net property rental and related income 66 865 721 373 130 351 6 942 - 925 531
Fair value adjustment to:
Fair value (loss)/gain to
investment property (85 269) 329 648 22 095 37 726 - 304 200
Unrealised loss on derivative
financial instruments - - - - (45 076) (45 076)
Assets
Investment property - fair value 422 241 6 795 035 1 282 907 - - 8 500 183
Non-current assets held-for-sale 206 000 769 681 257 500 177 300 - 1 410 481
Straight-line rental income 4 349 168 726 11 441 - - 184 517
Other assets (223 938) (1 870 547) 1 718 005 12 043 1 284 609 920 172
Total assets 408 652 5 862 895 3 269 854 189 343 1 284 609 11 015 353
Total liabilities 319 29 666 21 450 542 5 306 747 5 358 724
This segmental report has been populated based on a per building classification which is in accordance with the majority tenant.
Commentary
Company profile
Delta is a JSE listed Real Estate Investment Trust ("REIT") with a property portfolio of R11.4 billion and a market
capitalisation of R5.9 billion as at 28 February 2017. The Fund is black managed with a level 2 B-BBEE contributor status
which is the highest in the sector. Delta continues to be the dominant sovereign listed property fund in South Africa.
The primary focus of the Fund is long-term investment in quality, rental income-generating properties situated in
strategic nodes attractive to sovereign entities and other tenants requiring empowered landlords.
Financial results
The Board has declared a full-year distribution of 97.24 cents per share which represents a 7.1% increase to the prior
year.
Contractual rental income and property operating expenses increased by 32.1% and 44.1% respectively, largely
influenced by the growth in the portfolio due to transfer of previous acquisitions. The gross cost to income ratio increased to
28.8% and was impacted by higher maintenance and repairs, while the net cost to income ratio remained fairly unchanged at
12.4% due to higher utility recoveries.
Administrative expenses for the period, excluding once-off items of R20 million recognised in the prior year,
increased 8.7% while the weakening of the rand resulted in a R20.3 million forex gain on foreign loans. Fair value adjustments
of R34.9 million represents the net movement between the fair value loss on investment property of R43.8 million and gain
on swap contracts of R8.9 million.
Finance costs increased 14.0% due to prime interest rate increases of 100 basis points during the period coupled with
prior year acquisitions funded by debt being in place for the full current year, while interest income increased
marginally by 2.2%.
The share of profit in associate decreased to R1.5 million primarily due to fair value adjustments by Mara Delta on
its property portfolio. Delta continues to benefit from its 21.4% shareholding in Mara Delta, having received a US Dollar
denominated distribution which translated into R38.0 million.
Property portfolio
Delta’s portfolio of R11.4 billion consists of 112 properties with a total GLA of 981 777m2, which includes assets
held-for-sale comprising 18 properties with a total GLA of 126 144m2 and a combined value of R1.3 billion.
The segmental and geographic breakdown of the portfolio (per tenant) at the reporting date was as follows:
TENANT PROFILE
Detailed tenant breakdown - GLA (%) Detailed tenant breakdown - revenue (%)
Government Government
- National government 35.7% - National government 41.1%
- Provincial government 13.8% - Provincial government 19.8%
- Local government 3.9% - Local government 5.0%
- State-owned enterprise 9.6% - State-owned enterprise 10.5%
Other Other
- Retail 6.2% - Retail 7.1%
- Industrial 2.8% - Industrial 1.5%
- Vacant 10.7% - General office 15.0%
- General office 17.3%
GEOGRAPHIC PROFILE
Geographic profile - GLA (%) Geographic profile - rental (%)
- Gauteng 42.8% - Gauteng 44.8%
- KwaZulu-Natal 29.4% - KwaZulu-Natal 23.1%
- Free State 8.7% - Free State 7.2%
- Limpopo 4.6% - Limpopo 9.2%
- Western Cape 4.3% - Western Cape 5.0%
- Northern Cape 3.8% - Northern Cape 4.3%
- Mpumalanga 3.4% - Mpumalanga 3.1%
- Eastern Cape 2.4% - Eastern Cape 2.8%
- North West 0.6% - North West 0.5%
Acquisitions
Delta did not embark on any new acquisitions during the current year, choosing to rather focus inwardly on assets
acquired, filling up vacancies and renewal of leases. The R1.3 billion Redefine portfolio acquired in 2015 transferred
between April 2016 and August 2016.
Major capital projects
Delta continues to invest substantial capital in its property portfolio to ensure that it maintains a higher quality
and grade of assets that meets the requirements of its tenants. The following major capital projects progressed during
the current year and are expected to be completed in the new financial year:
- 88 Field Street (Durban) - estimated capital spend of R89 million.
- Sleepy Hollow (PMB) - estimated capital spend of R4.5 million intended to upgrade the asset.
- Embassy Building (Durban) - undertaken at an estimated cost of R28 million and is strategic to securing future
leases.
- Beacon Hill (King Williams Town) - approved at an estimated cost of R40 million due to a newly secured five-year
lease.
- Commission House (Pretoria) - currently in progress at an estimated cost of R32 million and is intended to upgrade
the asset which is well positioned near the Union Buildings. We recently secured a three-year lease for this asset
and are in negotiations to extend this to five years.
- 17 Harrison Street Building & Kay Street Parkade (Johannesburg) - approved at an estimated cost of R11 million due
to a four-year lease secured.
Disposals
At 2016 financial year-end 17 non-core properties, with a GLA of 134 754m2 and amounting to R1.4 billion, were
classified as non-current assets held-for-sale. During the current year, an additional five buildings with a GLA of 34 792m2
and amounting to R413.4 million were added to non-current assets held-for-sale. The disposal of Tembisa Megamart, Thema
Thumo, Protea Coin Durban and Top Trailer site 2, with a total GLA of 33 409m2, for an aggregate R268.5 million were
concluded during the current financial year. Sale agreements for Block G, Broadcast House, Damelin, Presidia, 1 Ferreira
Street, 3 Ferreira Street and Samora House with a total GLA of 40 287m2 and fair value of R558.1 million were concluded as
at 28 February 2017 and are in the process of being transferred. Samora House has since transferred.
Management remains opportunistic in respect of acquiring assets that complement the Fund’s strategy and intends to
utilise the net disposal proceeds to invest in either higher yielding assets, capital expenditure or to reduce gearing.
Letting and vacancies
The lease expiry profile of the portfolio by building classification at 28 February 2017 was as follows:
Segment Vacant Monthly February February February February February Beyond
2018 2019 2020 2021 2022 28 February
2022
Office sovereign 7.66% 25.94% 30.52% 7.73% 7.02% 13.28% 5.41% 2.43%
Office other 20.96% 10.26% 21.50% 23.74% 16.02% 2.84% 4.16% 0.52%
Retail 3.39% 9.04% 3.50% 11.39% 14.41% 2.02% 1.04% 55.20%
Industrial 0.00% 0.00% 41.52% 0.00% 0.00% 58.48% 0.00% 0.00%
Vacancies increased to 10.7% with a GLA of 105 119m2 and reduced to 9.1% post-year-end. The weighted average in-force
escalation at year-end is 6.9% with a weighted average rental per m2 of R105.21. Lease renewals of 100 364m2 and new
leases totalling 12 073m2 were also concluded during the year.
National Treasury, together with national and provincial departments of Public Works, is in the process of finalising
a new framework for the procurement of leases. Following the directive of the finance minister to renegotiate leases,
DPW and National Treasury established a high-level negotiation team to engage landlords. This team is well advanced in the
negotiation process, having consulted with all relevant stakeholders. Delta together with other landlords have
responded to the call by government to renegotiate all leases, and has submitted its own bulk lease proposal to renew 62 leases
totalling approximately 243 000m2 for long-term periods. The initial roll out is afforded to the major landlords, who
make up the bulk of the rental accommodation spend for national government, to submit proposals for lease renewals, with
an intention of rolling it out to all landlords thereafter. Delta remains confident of obtaining long-term leases on its
government portfolio.
Funding
Delta’s loan to value ratio has improved significantly to 41.5% (2016: 47.2%), benefiting from acquisitions funded
with equity and the settlement of debt on disposals.
The weighted average all-in cost of funding is 9.2% (2016: 8.8%), with 85.1% (2016: 83.5%) of borrowings being fixed
through a combination of swap contracts and fixed rate loans for an average period of 2.2 years (2016: 2.1 years). The
average debt facility expiry period is 1.9 years (2016: 2.3 years) with the interest cover ratio at 2.5 (2016: 2.4).
Management remains focused on improving both gearing and the debt expiry profile as well as obtaining competitive
funding rates.
Provision of financial assistance
Delta shareholders are referred to special resolution 4 relating to the provision of direct or indirect financial
assistance in terms of section 45 of the Companies Act, No 71 of 2008 ("the Companies Act") to related or inter-related
companies, which was approved at the Annual General Meeting of Delta on 21 September 2016.
Further to the above, Delta shareholders are notified in terms of section 45(5)(a) of the Companies Act, that the
Board of directors of the Company ("the Board") passed a resolution on 25 May 2017 ("the Board resolution") granting
financial assistance to the following related companies:
- Somnipoint Proprietary Limited - R46.6 million in respect of a loan to a company with common directors.
- Mara Delta Property Holdings Limited - R5.3 million in respect of a guarantee fee charged.
- Hestitrix Proprietary Limited - R247.8 million in the ordinary course of business.
- K2014000273 Proprietary Limited - R138.6 million in the ordinary course of business.
- 277 Vermeulen Street Properties Proprietary Limited - R18.8 million in the ordinary course of business.
- Hendisa Investments Proprietary Limited - R33 614 in the ordinary course of business.
- Baystone Holdings Limited - R56.6 million in order to acquire a property.
The financial assistance provided, as detailed above, is greater than one-tenth of 1% of Delta’s net worth as at the
date of the Board resolution. The Board further confirms that immediately after providing the financial assistance, the
Company continues to satisfy the solvency and liquidity test as contemplated in section 4 of the Companies Act and that
the terms and conditions of the financial assistance are fair and reasonable to the Company.
Changes to directorate during the period
Since the release of the 2017 interim results announcement, Marelise de Lange stepped down as Chairman of the
Remuneration Committee, member of the Investment Committee and as an independent non-executive director of the Board with effect
from 23 February 2017. We thank Marelise for her contributions to Delta and wish her well in her future endeavours.
Mfundiso Johnson Ntabankulu ("JJ") Njeke has been appointed as an independent non-executive director of the Board from
1 April 2017.
Events after the reporting period
Delta entered into a sale agreement with an unrelated UK-based company for the disposal of its 10% shareholding in
joint venture Baystone Holdings Limited, which was concluded on the 7 April 2017. The decision to dispose was based on the
UK commercial property market being negatively affected by the Brexit outcome, together with Delta’s ambition to more
effectively manage its balance sheet. The disposal has resulted in free cash of R116.1 million being released from a cash
guarantee issued in favour of Baystone, which will be more effectively deployed within the Group.
Prospects
South Africa’s downgrade to sub-investment or "junk" status reflects the rating agency’s belief that political risks
will remain elevated this year, that policy shifts are likely which could further affect fiscal and economic growth
outcomes and that interest rates could rise.
Delta will be exposed to rising interest rates in the medium term and management will endeavour to manage this
downside risk and to reduce gearing to below 40%. Significant effort is being channelled into addressing the ownership pillar
per the proposed new BBBEE codes, ensuring compliance and qualification for long-term leases per the much anticipated DPW
leasing policy framework. We believe this will result in a healthier balance sheet and improved long-term
sustainability of the business.
Management and the Board remain committed to Delta’s sovereign strategy, and remain positive that the defensive nature
of Delta’s portfolio will reward investors on a total return basis. We forecast earnings remaining flat for the 2018
financial year primarily due to once-off lease adjustments being traded off for longer-term leases, and disposal of
non-current assets held-for-sale. The Group’s independent auditors have not reviewed nor reported on this forecast.
Declaration of final dividend ("the cash dividend")
Shareholders are advised that dividend No 9 of 51.30719 cents per share for the year ended 28 February 2017 has been
declared. The source of the cash dividend is from distributable income. The abbreviated timetable is as follows:
Declaration date Monday, 29 May 2017
Last day to trade cum dividend Tuesday, 20 June 2017
Shares to trade ex dividend Wednesday, 21 June 2017
Record date Friday, 23 June 2017
Payment date Monday, 26 June 2017
Shareholders may not dematerialise or rematerialise their shares between Wednesday, 21 June 2017 and Friday, 23 June 2017,
both days included.
In accordance with Delta’s status as a REIT with effect from 8 December 2014, shareholders are advised that the
dividend meets the requirements of a "qualifying distribution" for the purposes of section 25BB of the Income Tax Act, No 58
of 1962 ("Income Tax Act"). An announcement informing shareholders of the tax treatment of the distributions will be
released separately on SENS.
Basis of preparation and accounting policies
The condensed consolidated financial statements have been prepared in accordance with the International Financial
Reporting Standards ("IFRS"), IAS 34: Interim Financial Reporting, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council, the JSE
Listings Requirements and the requirements of the Companies Act of South Africa. The accounting policies applied in the
preparation of these interim results are in terms of IFRS and are consistent with those applied in the previous annual
financial statements.
The condensed consolidated financial statements have been prepared under the supervision of the Chief Financial
Officer, Mr Shaneel Maharaj CA(SA)/HDipTax, and have been reviewed by BDO South Africa Incorporated, who expressed an
unmodified review conclusion.
A copy of the auditor’s review report is available for inspection at the Company’s registered office together with the
financial statements identified in the auditor’s report. The auditor’s report does not necessarily cover all of the
information contained in this announcement. Shareholders are therefore advised that in order to obtain a full understanding
of the nature of the auditor’s work they should obtain a copy of that report together with the accompanying financial
information from the registered office of the Company.
The directors take full responsibility for the preparation of the provisional report and the financial information has
been correctly extracted from the underlying financial statements. Delta has complied with IFRS and JSE Listings
Requirements by disclosing earnings and headline earnings per share. Distribution per share has been disclosed additionally.
By order of the Board
JB Magwaza (Chairman) SH Nomvete (Chief Executive Officer)
29 May 2017
Directors: JB Magwaza^ (Chairman), SH Nomvete* (CEO), S Maharaj* (CFO), ON Tshabalala* (COO), N Khan^#, DN Motau^,
ID Macleod^, MJN Njeke^, NN Afolayan^, BA Corbett~, AJ König~
*Executive; ^Independent non-executive; ~Non-executive; #Lead independent director
Registered office: Silver Stream Office Park, 10 Muswell Road South, Bryanston (Postnet Suite 210, Private Bag X21,
Bryanston, 2021)
Transfer secretaries: Computershare Investor Services Proprietary Limited
Sponsor: Nedbank Corporate and Investment Banking
www.deltafund.co.za
Date: 29/05/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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