Wrap Text
Preliminary summarised audited consolidated financial statements for the year ended 30 June 2017
Fortress Income Fund Limited
Incorporated in the Republic of South Africa
Reg no 2009/016487/06
JSE share codes: FFA: ISIN ZAE000192787
FFB: ISIN ZAE000192795
("Fortress" or "the group")
(Approved as a REIT by the JSE)
Preliminary summarised audited consolidated financial
statements for the year ended 30 June 2017
Directors' commentary
Nature of business and strategy
Fortress is a Real Estate Investment Trust ("REIT") investing in direct
property and listed property securities.
At 30 June 2017 Fortress owned 327 investment properties valued at
R29,9 billion. At this date the listed securities portfolio, comprising
both local listed REITs and international listed property securities,
was valued at R30,2 billion.
The group's direct property portfolio consists predominantly of A-grade
logistics warehouses let primarily to corporate tenants on long leases.
The development pipeline of logistics warehouses, which are built to the
highest specifications, continues to grow to accommodate current demand.
Fortress has acquired various strategically-positioned zoned and serviced
land parcels for this purpose. Fortress owns a portfolio of retail centres,
the majority of which focus on commuter-orientated nodes. These centres
continue to perform well and are continually being improved and where
appropriate expanded to maintain relevance in their markets.
Fortress will endeavour to acquire similar properties when opportunities
present themselves.
Capital structure
Fortress is an internally asset managed REIT listed on the Johannesburg
Stock Exchange ("JSE") with separately traded A and B shares. The company
had a combined market capitalisation of R57,5 billion at 30 June 2017.
The Fortress A shares (share code: FFA) have a preferential right to
income distribution and to capital participation in the event of winding
up. The annual increase on the A share dividend is the lower of 5,00% or
CPI. The Fortress B shares (share code: FFB) are entitled to the residual
distributable income and capital participation on winding up.
Distributable earnings
The increase in the dividend for the six months to June 2017 attributable
to the A share was 5,00%, being the lower of CPI or 5,00%, as data
published by Statistics SA indicated CPI to be 5,80% for the period.
Accordingly, the dividend for the A share increased from 64,45 cents per
share to 67,67 cents per share. The B share dividend increased by 25,06%
from 74,69 cents per share to 93,41 cents per share compared to the
previous comparable period.
For the 2017 financial year, the dividend for the A share amounts to
135,63 cents per share (5,00% increase). The B share dividend for the
year increased by 25,09% to 172,00 cents per share.
Earnings from the listed portfolio continued to outperform and in addition,
the dividend income from the offshore listed securities benefited from
attractive currency hedges previously contracted. The retail and logistics
portfolios performed well, while the office and industrial portfolios
were marginally behind budget.
Direct property portfolio
Logistics
The construction of phase one of Louwlardia Logistics Park in Centurion
was completed and this 23 642m2 facility with easy access and good
exposure to the N1 north highway was let to We Buy Cars. This transaction
was concluded at an initial yield of 9,1%. Phase two of the park has been
pre-let to Worldwide Automotive Group. Construction of this 34 000m2
facility at a forecast yield of 9,5% has commenced and completion is
expected in April 2018. The tenant has a fixed option to purchase 50% of
the facility within the first year of the lease agreement. The
construction of phase three, a 17 000m2 logistics facility,
is anticipated to commence in October 2017. Negotiations with a large
corporate tenant for this space are at an advanced stage.
Westlake View phase one, located in the logistics node of Longmeadow, was
completed prior to the financial year-end. This 19 878m2 logistics
facility was leased to Bongani Rainmaker, a logistics contractor focused
on education. The development achieved a yield of 9,4%. Construction of
Westlake View phase two, a speculative logistics facility measuring
23 500m2, is anticipated to commence in September 2017. Negotiations with
a current Fortress multinational tenant to lease this entire facility
are in progress.
The joint venture with C. Steinweg Bridge for the construction of the
30 000m2 logistics facility in City Deep is progressing ahead of programme
with occupation anticipated in October 2017. Fortress expects to yield
10,3% on its 51% share of this development on commencement of this 15-year
lease.
The construction of phase one of a facility measuring 13 400m2 at Union
Park Logistics is expected to be completed by October 2017. The
remaining 50 000m2 of available bulk will be developed once phase one
has been let.
Extensive soil improvements are underway at Clairwood Logistics Park to
enable construction of logistics warehouses measuring a total of 358 000m2.
Development site one in this park has been platformed and construction of
a speculative facility measuring 25 000m2 has commenced. Negotiations are
currently in progress with three separate tenants for this facility.
The earthworks at Cornubia Ridge Logistics Park (50,1% owned) are at an
advanced stage and the creation of three separate platforms is nearing
completion. Negotiations with a potential tenant over a 20 000m2 facility
are at an advanced stage.
Post year-end, Fortress took transfer of zoned and serviced land situated
east of Linbro Park for the creation of Linbro Park East Logistics
(GLA of 105 000m2).
The infrastructure at East Port Logistics Park (65% owned) is
progressing well and the board has approved the construction of the
first warehouse of 21 000m2. In addition, a current multinational
logistics tenant has committed to a new 10-year lease on a 23 600m2
facility in this park. Construction will commence on signature of
the lease agreement.
Industrial
The continual slowdown in manufacturing demand, rand strength and
increasing utility costs has impacted negatively on both rental growth and
vacancy in the industrial portfolio. This slowdown and the resultant
strain on tenants have seen rentals remain flat and vacancies increase.
Retail
Trading density at Fortress' retail centres grew at a pleasing 7,3% year-
on-year. Strong trade over Black Friday, the December holidays and during
the January back-to-school campaign all contributed to this growth.
Turnover rental billed and collected during the period exceeded budget by
R4 million.
The Galleria (25% owned) welcomed several new tenants to its retail
offering during the year, including new lettings to H&M and Pick n Pay.
The extensions and refurbishments undertaken at the following centres were
completed: Lephalale Crossing, Lebowakgomo Centre, Venda Plaza, The
Plaza (Nelspruit), Rustenburg Plaza and Jeffreys Bay Centre. These centres
are all trading well. Park Central Shopping Centre, Central Park
Bloemfontein and Palm Springs Centre are undergoing refurbishment and
redevelopment to meet strong tenant demand.
The Weskus Mall extension for the new Edgars store was handed over in
April 2017 and beneficial occupation of the new Pick n Pay store is
expected on 1 September 2017.
Transfer of Fortress' 51% share in the White River centre is imminent,at
which point construction of phase one, measuring 10 000m2 of this 25 000m2
development, will commence.
Offices
In a challenging market characterised by continual new supply and weak
demand, the office portfolio performed marginally below budget. The board
has taken the decision to exit the office portfolio and several
transactions were concluded. Six office buildings with a total GLA of
41 816m2 and a combined sale price of R584 million were sold. Several
further sales are in various stages of negotiation.
Property disposals
The following properties were sold during the year:
Net Book
proceeds value Transfer Exit
Property name Sector R'000 R'000 date yield
The Crescent
Umhlanga @ Retail 550 000 486 000 ^& 8,2%
Long Street Cape
Town @ Office 387 500 376 000 Jun 2017 8,7%
Makhaza Shopping
Centre Retail 115 681 110 400 Dec 2016 8,8%
9 Galaxy Avenue
Linbro Park Logistics 115 000 95 000 May 2017 8,0%
Kingsburgh Shopping
Centre $ Retail 114 660 94 184 ^& 8,6%
40 Brakfontein
Century Park Logistics 90 000 88 300 Feb 2017 *
Greenbushes Logistics 80 000 96 533 ^ n/a
Van Riebeeck Mall $ Retail 74 000 77 497 ^& 9,3%
11 Naivasha Road Office 70 938 68 000 Nov 2016 9,5%
33 Angus Crescent
Longmeadow Logistics 62 000 58 000 & 8,2%
Corporate Place
Cape Town Office 58 600 49 200 Apr 2017 7,8%
Shoprite Bela-Bela $ Retail 54 250 47 000 ^ 9,1%
7 Wilcox Road
Prospecton Logistics 53 500 52 400 Nov 2016 9,2%
Homeworld Centre Retail 50 500 47 000 Nov 2016 9,1%
7 Old Pretoria Road
Nelspruit Industrial 50 000 54 900 Dec 2016 11,7%
28 Milkyway Avenue
Linbro Park Logistics 42 000 37 400 Apr 2017 *
8 Armstrong Road La
Lucia Office 31 000 31 000 May 2017 9,2%
Citrus Street Logistics 30 600 30 900 Nov 2016 9,2%
Cranberry Street Logistics 28 800 28 700 Nov 2016 9,2%
Albert Amon Road
Meadowdale Industrial 27 500 26 000 Jan 2017 8,8%
Broadwalk Motor
City Retail 27 350 26 800 ^ 9,1%
21E Polo Crescent
Woodmead Office 23 000 27 000 ^& 9,8%
12 Olympia Street
Eastgate Industrial 22 400 18 500 May 2017 8,4%
Bofors Circle Park
Epping Logistics 21 500 18 600 Feb 2017 8,3%
93 Goodwood Road
Pinetown Logistics 20 800 20 600 Dec 2016 9,1%
Brewery Road Isando $ Industrial 16 950 14 700 ^ *
Absa Towers
Vanderbijlpark Office 13 000 15 000 Mar 2017 14,0%
18 Suni Avenue
Corporate Park Logistics 7 575 5 640 Nov 2016 6,7%
3 Arbeid Street Industrial 6 500 6 400 Mar 2017 9,7%
9 Linbro Village
Linbro Park Industrial 4 400 4 300 Dec 2016 9,0%
2 250 004 2 111 954
@ Sale agreement subject to limited rental guarantees.
^ Held for sale.
& Transferred after year-end.
* Vacant occupation.
$ Details of these properties, previously owned by Lodestone, were
included in the circular
Vacancies
The total vacancy at 30 June 2017 decreased to 5,3% from 6,0% at
31 December 2016. Fortress' property portfolio has a total GLA of
3 263 683m2 (based on 100%). The total office vacancy as a percentage
increased marginally, largely due to the sales of tenanted office buildings.
The total office vacancy measured in GLA has reduced as offices became
a smaller part of the direct portfolio.
% property % property
portfolio portfolio
Sectoral vacancy by value by value
by GLA Jun 2017 Dec 2016 Jun 2017* Dec 2016*
Logistics 3,0% 5,0% 37,3% 35,7%
Retail 3,8% 3,7% 36,1% 34,1%
Offices 17,4% 15,7% 11,7% 15,9%
Industrial 6,4% 6,2% 13,1% 12,7%
Other 10,6% 10,7% 1,8% 1,6%
* Information based on Fortress' management accounts.
Broad-based black economic empowerment
Fortress issued 9 805 844 A shares and 9 805 844 B shares at R16,94 per
A share and R34,05 per B share to The Siyakha 2 Education Trust on
25 May 2017. In line with shareholder approval, Fortress provided financial
assistance to this charitable trust, established for the promotion of
black education, to enable it to acquire these shares.
In future, Fortress intends financing the acquisition of shares by BEE
partnersat rates equal to the income produced by the Fortress shares in
exchange for a 49% equity participation in the investment.
Listed portfolio
Jun 2017 Jun 2016
Number of Fair value Number of Fair value
Counter shares R'000 shares R'000
Greenbay
(GRP)* * 420 000 000 579 600
Nepi
(NEP)% 59 154 000 9 787 621 52 530 000 8 825 040
Resilient
(RES) 39 456 000 4 803 373 39 370 000 5 188 966
14 590 994 14 593 606
Greenbay
(GRP)* 1 480 410 000 2 857 191 *
Hammerson
(HMN)** - 13 300 405 1 403 489
Rockcastle
(ROC)^ % 358 432 000 12 788 854 343 830 000 11 865 573
Total 30 237 039 27 862 668
* Fortress owns 21% of Greenbay and treated it as an associate
(equity accounted) at June 2017. At June 2016 it was accounted for as an
investment and was fair valued.
^ Rockcastle was treated as an associate (equity accounted) and was thus
not fair valued in the financial statements.
** The Hammerson position at June 2016 was held through equity derivatives.
% In July 2017 Nepi and Rockcastle merged into a new company, Nepi
Rockcastle plc, which is listed on the JSE Limited and Euronext in
Amsterdam. Fortress owns 25,1% of this new company.
Facilities
Fortress has accepted R2 billion in new facilities from Nedbank with
tenures of 4 years (R1 billion) and 6 years (R1 billion) and R500 million
in new facilities from Sanlam with tenures of 7 years (R250 million)
and 10 years (R250 million). New 6-year (R250 million) and 7-year
(R250 million) facilities from LibFin have been approved.
During the year Fortress raised a total of R1,367 billion
(3-years: R876 million; 3,5-years: R241 million; 6-months: R250 million)
and repaid R1,022 billion under its Domestic Medium Term Note programme.
Average
Amount margin
Facility expiry R'million over Jibar
Jun 2018 1 257 1,65%
Jun 2019 5 137 1,65%
Jun 2020 4 596 1,72%
Jun 2021 3 716 1,81%
Jun 2022 2 650 1,87%
Jun 2023 1 281 1,92%
Jun 2024 250 1,75%
Jun 2025 - -
Jun 2026 - -
Jun 2027 250 1,99%
19 137 1,75%
Interest rate derivatives
The following interest rate derivatives are in place in mitigation of
South African interest rate risk:
Amount Average
Interest rate swap expiry R'million swap rate
Jun 2019 100 7,71%
Jun 2020 1 200 6,99%
Jun 2021 700 8,16%
Jun 2022 600 7,99%
Jun 2023 300 7,79%
Jun 2024 200 7,47%
Jun 2025 100 7,78%
3 200 7,59%
Amount Average
Interest rate cap expiry R'million cap rate
Jun 2019 200 7,39%
Jun 2020 200 7,52%
Jun 2021 400 7,80%
Jun 2022 400 7,76%
Jun 2023 300 7,71%
Jun 2024 400 7,98%
Jun 2025 250 8,03%
Jun 2026 250 8,13%
Jun 2027 250 8,18%
2 650 7,85%
Variable rate instruments R'000
Interest-bearing borrowings 14 768 882
Loans to BEE vehicles (3 432 645)
Loans to co-owners (353 510)
Cash and cash equivalents (15 211)
Currency derivatives (6 927 869)
Capital commitments contracted for 1 072 860
5 112 507
Total interest rate derivatives 5 850 000
Percentage hedged 114,4%
Capital expenditure approved by the board 1 083 412
Percentage hedged inclusive of approved capital
expenditure 94,4%
Information based on Fortress' management accounts.
The all-in weighted average cost of funding of Fortress was 9,09% at
30 June 2017 and the average hedge term was 4,6 years.
The following interest rate derivatives are in place in mitigation of the
group's exposure to foreign interest rate risk:
Amount Average
Interest rate cap expiry EUR'000 cap rate
Jun 2022 146 900 0,36%
Jun 2023 146 900 0,49%
Jun 2024 48 900 0,27%
Jun 2025 48 900 0,38%
391 600 0,40%
In total 80,1% of the exposure to Euro base rates is hedged, and the
average hedge terms was 5,5 years.
Currency derivatives
Balance sheet hedging
The board's policy is to use cross-currency swaps as a means of obtaining
funding at rates in a currency similar to that of the foreign investments,
but only to achieve a neutral effect on the first year's distribution. At
June 2017 cross-currency swaps totalled EUR488,911 million at an exchange
rate of R14,17 against investments of EUR1 702,1 million (Greenbay, Nepi
and Rockcastle).
Income hedging
Foreign income is hedged in line with the following policy:
- Hedge 100% of the income projected to be received in the following
12 months;
- Hedge 67% of the income projected to be received in months 13 to 24;
and
- Hedge 33% of the projected income to be received in months 25 to 36.
In line with this policy the following hedges are currently in place:
Nepi
Greenbay Rockcastle
Forward rate against ZAR EUR EUR
Dec 2017 16,69 17,16
Jun 2018 17,05 17,66
Dec 2018 17,36 18,01
Jun 2019 18,23 18,71
Dec 2019 18,33 18,49
Jun 2020 19,28 18,97
Summary of financial performance
Jun 2017 Dec 2016 Jun 2016 Dec 2015
Dividend
per A share
(cents) 67,67 67,96 64,45 64,72
Dividend
per B share
(cents) 93,41 78,59 74,69 62,81
Shares in
issue at
period end
- A 1 175 214 835 1 172 508 991 1 119 708 334 1 091 747 728
- B 1 076 832 691 1 067 026 847 1 014 226 190 986 265 584
Shares used
for dividend
per share
calculation
- A 1 175 214 835 1 165 408 991 1 112 608 334 1 112 608 334
- B 1 076 832 691 1 067 026 847 1 014 226 190 1 014 226 190
A shares
held in
treasury - 7 100 000 7 100 000 7 100 000
Managment
accounts
information
Net asset
value per
A share* R16,89 R16,32 R15,62 R16,61
Net asset value
per B share R26,75 R24,73 R25,73 R24,14
Loan-to-value
ratio** 22,8% 25,2% 23,8% 25,3%
Net property
expense ratio 14,9% 19,5% 16,8% 15,2%
Gross property
expense ratio 34,9% 36,2% 33,6% 35,3%
Net total expense
ratio 12,4% 15,8% 15,6% 13,3%
Gross total
expense ratio 26,5% 28,0% 28,1% 27,4%
IFRS accounting
Net asset value
per A share* R16,89 R16,32 R15,62 R16,61
Net asset value
per B share R23,43 R22,83 R23,22 R20,77
* 60-day volume weighted average traded price at reporting date limited
to combined net asset value.
** The loan-to-value ratio is calculated by dividing total interest-
bearing borrowings adjusted for cash on hand by the total of investments
in property, listed securities and loans advanced.
Revised listings particulars forecast
Shareholders are referred to the Revised Listings Particulars ("RLP")
which was posted to shareholders on 28 September 2015 with regards to the
Capital Property Fund Limited transaction. In compliance with paragraph
8.63(g) of the JSE Listings Requirements, the main reasons why the 2016
forecast contained in the RLP varied by more than 10% compared to
actual revenue and profit before tax for 2016 are set out below.
Revenue
The forecast in the RLP was based on an assumed transaction date of
1 November 2015. The effective date was, however, 1 December 2015.
As a result of the difference in effective date, the revenue of
Capital for November 2015 was included as an antecedent dividend
as opposed to being included as part of revenue in the results of
June 2016.
Profit before tax
Fair value adjustments on investment property, investments and
currency derivatives are based on future closing equity prices, future
capitalisation rates and future spot currency rates which fluctuate.
Goodwill was not impaired in the circular, thus impacting profit
after tax.
Prospects
The defensive nature of Fortress' direct property portfolio which
specialises in logistics warehouses and the development thereof, in
conjunction with its commuter-orientated retail centres, continues to
deliver sustained growth in the current difficult economic environment.
The group's strategically located land will ensure a sustainable pipeline
for the development of technically superior logistics facilities.
The listed offshore portfolio is well positioned to show strong growth
in distributions.
On the assumption that the A share dividend will increase by 5,00%, the
board anticipates that the B share dividend will increase by
approximately 15% for the 2018 financial year and by at least 15% for the
2019 financial year. The growth is based on the assumptions that there is
no further deterioration of the macro-economic environment, that no major
corporate failures will occur and that tenants will be able to absorb the
recovery of rising utility costs and municipal rates. Budgeted rental
income was based on contractual escalations and market-related renewals.
This forecast has not been audited or reviewed by Fortress' auditors.
By order of the board
Mark Stevens Rual Bornman
Managing director Financial director
Johannesburg
8 August 2017
Summarised consolidated statement of financial position
Audited Audited
Jun 2017 Jun 2016
R'000 R'000
Assets
Non-current assets 60 144 415 53 771 468
Investment property 24 848 981 24 286 405
Straight-lining of
rental revenue
adjustment 364 862 282 850
Investment property under
development 3 282 103 1 709 878
Investment in and loans to
associates and
joint venture 12 860 576 10 053 527
Investments 14 590 994 14 593 606
Fortress Share Purchase
Trust loans 764 254 1 019 634
Loans to BEE vehicles 3 432 645 1 803 180
Loans to co-owners - 22 388
Current assets 1 921 566 1 395 532
Investment property held for sale 990 409 222 377
Straight-lining of rental revenue
adjustment 11 801 1 568
Fortress Share Purchase Trust loans 22 344 26 878
Loans to co-owners - 146 641
Trade and other receivables 881 242 805 497
Hammerson equity derivative - 182 670
Cash and cash equivalents 15 770 9 901
Total assets 62 065 981 55 167 000
Equity and liabilities
Total equity attributable to
equity holders 45 074 462 40 924 489
Stated capital 45 072 151 42 241 795
Treasury shares - (104 827)
Currency translation reserve (134 149) (34 075)
Reserves 136 460 (1 178 404)
Non-controlling interests 38 101 -
Total equity 45 112 563 40 924 489
Total liabilities 16 953 418 14 242 511
Non-current liabilities 14 951 626 12 052 828
Interest-bearing borrowings 13 804 864 10 987 225
Deferred tax 1 146 762 1 065 603
Current liabilities 2 001 792 2 189 683
Trade and other payables 1 001 482 551 318
Interest-bearing borrowings 1 000 310 1 638 365
Total equity and liabilities 62 065 981 55 167 000
Summarised consolidated statement of comprehensive income
Audited Audited
for the for the
year ended year ended
Jun 2017 Jun 2016
Income statement R'000 R'000
Net rental and related revenue 2 181 722 1 557 337
Recoveries and contractual
rental revenue 3 204 670 2 148 517
Straight-lining of rental revenue
adjustment 92 245 127 827
Rental revenue 3 296 915 2 276 344
Property operating expenses (1 115 193) (719 007)
Income from investments 740 734 348 296
Fair value gain on investment
property,investments and currency
derivatives 1 314 302 1 331 559
Fair value gain on investment
property 856 542 524 586
Adjustment resulting from
straight-lining of rental revenue (92 245) (127 827)
Fair value (loss)/gain on
investments (223 138) 1 915 616
Fair value gain/(loss) on
currency derivatives 773 143 (980 816)
Administrative expenses (122 694) (104 502)
Impairment of goodwill on
Capital merger - (8 846 837)
Impairment of goodwill on Lodestone
merger (1 707) -
Profit on sale of interest in
associate Rockcastle - 54 004
Income from associates and joint
venture 640 113 511 793
- distributable 634 467 411 950
- non-distributable 5 646 99 843
Profit/(loss) before net
finance costs 4 752 470 (5 148 350)
Net finance costs (262 124) (127 393)
Finance income 972 593 650 426
Interest received 972 593 650 426
Finance costs (1 234 717) (777 819)
Interest on borrowings (1 398 418) (849 951)
Capitalised interest 222 292 93 029
Fair value adjustment on
interest rate derivatives (58 591) (20 897)
Profit/(loss) before
income tax 4 490 346 (5 275 743)
Income tax (64 063) (96 014)
Profit/(loss) for the year
attributable to equity holders 4 426 283 (5 371 757)
Other comprehensive loss net
of tax
Items that may subsequently be
reclassified to profit or loss
Exchange differences on
translation of associates (100 074) (34 075)
Total comprehensive income/(loss)
for the year 4 326 209 (5 405 832)
Profit/(loss) for the year
attributable to:
Equity holders of the company 4 420 054 (5 371 757)
Non-controlling interests 6 229 -
4 426 283 (5 371 757)
Total comprehensive income/(loss)
for the year attributable to:
Equity holders of the company 4 319 980 (5 405 832)
Non-controlling intrest 6 229 -
4 326 209 (5 405 832)
Basic earnings/(loss) per A
share (cents) 202,21 (332,71)
Basic earnings/(loss) per B
share (cents) 202,21 (332,71)
Summarised consolidated statement of changes in equity
Currency
Stated Treasury translation
capital shares reserve Reserves
R'000 R'000 R'000 R'000
Audited
Balance at Jun 2015 7 441 388 6 019 423
Issue of shares
(equal number of A
and B shares) 39 057 666
Total comprehensive
loss for the year (5 371 757)
Repurchase of
A shares (104 827)
Repurchase and
cancellation of
B shares (4 257 259)
Exchange differences
on translation of
Rockcastle associate (34 075)
Dividends paid (1 826 070)
Balance at Jun 2016 42 241 795 (104 827) (34 075) (1 178 404)
Issue of shares
(equal number of
A and B shares) 2 935 183
- Issue of
35 272 360 shares on
1 December 2016 1 600 566
- Issue of 6 890 000
shares on
12 December 2016 335 032
- Issue of
10 638 297 shares on
15 December 2016 499 792
- Issue of 9 805 844
shares on 25 May 2017 499 793
Non-controlling
interests on Lodestone
merger
Total comprehensive
income for the year 4 420 054
Cancellation of
treasury shares (104 827) 104 827
Exchange differences on
translation of associates (100 074)
Dividends paid (3 105 190)
Balance at Jun 2017 45 072 151 - (134 149) 136 460
Equity
attributable Non-
to equity controlling Total
holders interests equity
Audited R'000 R'000 R'000
Balance at Jun 2015 13 460 811 13 460 811
Issue of shares (equal
number of A and B shares) 39 057 666 39 057 666
Total comprehensive loss
for the year (5 371 757) (5 371 757)
Repurchase of A shares (104 827) (104 827)
Repurchase and cancellation
of B shares (4 257 259) (4 257 259)
Exchange differences on
translation of
Rockcastle associate (34 075) (34 075)
Dividends paid (1 826 070) (1 826 070)
Balance at Jun 2016 40 924 489 40 924 489
Issue of shares (equal
number of A and B shares) 2 935 183 2 935 183
- Issue of 35 272 360
shares on 1 December 2016 1 600 566 1 600 566
- Issue of 6 890 000 shares
on 12 December 2016 335 032 335 032
- Issue of 10 638 297
shares on 15 December 2016 499 792 499 792
- Issue of 9 805 844 shares
on 25 May 2017 499 793 499 793
Non-controlling interests
on Lodestone merger 31 872 31 872
Total comprehensive income
for the year 4 420 054 6 229 4 426 283
Cancellation of treasury
shares - -
Exchange differences on
translation of associates (100 074) (100 074)
Dividends paid (3 105 190) (3 105 190)
Balance at Jun 2017 45 074 462 38 101 45 112 563
Summarised consolidated statement of cash flows
Audited Audited
for the for the
year ended year ended
Jun 2017 Jun 2016
R'000 R'000
Operating activities
Cash generated from operations 2 375 529 1 333 547
Interest received 972 593 650 426
Interest on borrowings (1 398 418) (849 951)
Dividends paid (3 105 190) (1 826 070)
Income tax - 13 663
Cash outflow from operating
activities (1 155 486) (678 385)
Investing activities
Development and improvement of
investment property (1 031 231) (386 792)
Acquisition of investment
property (907 201) (230 714)
Disposal of investment property 1 471 189 635 665
Increase of interest in and loans
advanced to associates and
joint venture (1 423 636) (52 084)
Proceeds from disposal of
interest in associate - 219 863
Share Purchase Trust loans advanced (335 199) (512 500)
Share Purchase Trust loans repaid 675 088 250 283
Investment property and related
assets and liabilities acquired not
included in additions to investment
property or financing activities 2 927 61 531
Cash flow on currency derivatives 1 263 422 (1 376 187)
Cash flow on Hammerson equity
derivative 278 349 (139 092)
Acquisition of investments (759 234) (1 018 067)
Proceeds on disposal of investments - 136 077
Co-owner loans advanced - (20 696)
Co-owner loans repaid 169 029 -
Loans advanced to BEE vehicles (1 336 851) (527 206)
Cash outflow from investing
activities (1 933 348) (2 959 919)
Financing activities
Increase in interest-bearing
borrowings 1 760 086 576 308
Raising of share capital 1 334 617 3 067 211
Cash inflow from financing
activities 3 094 703 3 643 519
Increase in cash and cash
equivalents 5 869 5 215
Cash and cash equivalents at the
beginning of the year 9 901 4 686
Cash and cash equivalents at the
end of the year 15 770 9 901
Cash and cash equivalents consist of:
Current accounts 15 770 9 901
The net cash outflow from operating activities results mainly from the
group distributing scrip dividends received, the antecedent dividend
adjustment and dividends accrued for but not yet received.
Notes
1. Preparation, accounting policies and audit opinion
The preliminary summarised audited consolidated financial statements have
been prepared in accordance with the requirements of the JSE Listings
Requirements for preliminary reports and the requirements of the Companies
Act of South Africa applicable to summary financial statements. The JSE
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"), 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. This report
complies with the SA REIT Association Best Practice Recommendations.
This report was compiled under the supervision of Rual Bornman CA(SA),
the financial director.
The accounting policies applied in the preparation of the consolidated
financial statements, from which the summarised consolidated financial
statements were derived, are in terms of IFRS and are consistent with the
accounting policies applied in the preparation of the previous
consolidated financial statements, with the exception of the adoption of
new and revised standards which became effective during the year.
The group's investment properties were externally valued by an independent
valuer. In terms of IAS 40: Investment Property and IFRS 7: Financial
Instruments: Disclosure, investment properties are measured at fair value
and are categorised as level 3 investments. The revaluation of investment
property requires judgement in the determination of future cash flows from
leases and an appropriate capitalisation rate which varies between 7,50%
and 15,50% (Jun 2016: 8,0% and 14,50%).
Changes in the capitalisation rate attributable to changes in market
conditions can have a significant impact on property valuations. A 25
basis points increase in the capitalisation rate will decrease the value
of investment property by R704,4 million (Jun 2016: R659,9 million).
A 25 basis points decrease in the capitalisation rate will increase the
value of investment property by R744,4 million (Jun 2016: R697,1 million).
In terms of IAS 39 and IFRS 7, the group's currency and interest rate
derivatives as well as the Hammerson equity derivative are measured at
fair value through profit or loss and are categorised as level 2
investments. In terms of IAS 39, investments are measured at fair value
being the quoted closing price at the reporting date and are categorised
as level 1 investments.
There were no transfers between levels 1, 2 and 3 during the year. The
valuation methods applied are consistent with those applied in preparing
the previous consolidated financial statements.
In July 2017 Nepi and Rockcastle merged into a new company, Nepi
Rockcastle plc, which is listed on the JSE Limited and Euronext in
Amsterdam. Fortress owns 25,1% of this new company. As a result of the
merger, a total of R1,109 billion of the deferred tax liability at
30 June 2017, relating to the deferred tax on the fair value adjustment
on the Nepi investment, was reversed in July 2017. A total of
R823,7 million of investment property held for sale at 30 June 2017,
transferred post year-end. Other than this, the directors are not aware
of any other events subsequent to 30 June 2017, not arising in the
normal course of business, which are likely to have a material effect
on the financial information contained in this report.
The auditors, Deloitte & Touche, have issued their opinion on the
consolidated financial statements for the year ended 30 June 2017. The
audit was conducted in accordance with International Standards on Auditing.
They have issued an unmodified audit opinion. These preliminary summarised
consolidated financial statements have been derived from the consolidated
financial statements and are consistent, in all material respects, with
the consolidated financial statements. This preliminary report has been
audited by Deloitte & Touche and an unmodified audit opinion has been
issued. Copies of their audit reports and the consolidated financial
statements are available for inspection at Fortress' registered address.
The auditor's report does not necessarily report on 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
engagement, they should obtain a copy of that report together with the
accompanying financial information from Fortress' registered address.
2. Lease expiry profile
Based on
Based on contractual
rentable area rental revenue
Vacant 5,3%
Jun 2018 27,8% 26,0%
Jun 2019 20,8% 20,8%
Jun 2020 14,3% 15,9%
Jun 2021 8,9% 11,1%
Jun 2022 6,0% 8,3%
> Jun 2022 16,9% 17,9%
100,0% 100,0%
3. Segmental analysis
Audited Audited
for the for the
year ended year ended
Jun 2017 Jun 2016
R'000 R'000
Segmental revenue - rental revenue
Logistics 1 345 816 850 957
Industrial 197 686 95 439
Offices 491 743 321 547
Retail 1 203 854 995 978
Other 57 816 12 423
Total 3 296 915 2 276 344
Profit/(loss) after tax
Logistics 1 288 746 639 548
Industrial 183 022 115 150
Offices 229 998 62 397
Retail 1 275 658 1 114 821
Other 51 644 52 670
Corporate - South Africa (81 049) (7 839 118)
Corporate - Europe 1 478 264 482 775
Total 4 426 283 (5 371 757)
Total assets
Logistics 11 585 403 10 034 954
Industrial 3 957 574 3 252 085
Offices 3 547 279 4 232 922
Retail 10 852 993 9 419 134
Other 671 314 500 638
Corporate - South Africa 9 601 117 8 826 751
Corporate - Europe 21 850 301 18 900 516
Total 62 065 981 55 167 000
Reconciliation of profit/(loss)
for the year to dividend declared
Profit/(loss) for the year 4 426 283 (5 371 757)
Fair value gain on investment
property (856 542) (524 586)
Fair value loss/(gain) on investments 223 138 (1 915 616)
Fair value (gain)/loss on currency
derivatives (773 143) 980 816
Impairment of goodwill on Capital
merger - 8 846 837
Impairment of goodwill on Lodestone
merger 1 707 -
Profit on sale of interest in
associate Rockcastle - (54 004)
Non-distributable income from
associates and joint venture (5 646) (99 843)
Fair value adjustment on interest
rate derivatives 58 591 20 897
Income tax 64 063 96 014
Non-controlling interests 3 348 -
Antecedent dividend * 116 652 758 405
Dividends accrued 173 274 94 554
Amount available for distribution
under best practice 3 431 725 2 831 717
Interim dividend declared
- A shares (net of treasury shares) (792 012) (720 080)
- B shares (838 576) (637 035)
Final dividend declared
- A shares (795 268) (717 076)
- B shares (1 005 869) (757 526)
- -
* The antecedent dividend includes eight months' performance of
Lodestone prior to 1 December 2016 and in 2016, five months' performance
of Capital prior to 1 December 2015.
The methodology applied in calculating the dividend is consistent with
that of the prior year.
4. Headline earnings
Audited Audited
for the for the
year ended year ended
Jun 2017 Jun 2016
R'000 R'000
Reconciliation of profit/(loss) for
the year to headline earnings
Basic earnings - profit/(loss)
for the year attributable to
equity holders 4 420 054 (5 371 757)
Adjusted for: (791 029) 8 300 269
- fair value gain on investment
property (764 297) (396 759)
- profit on sale of interest in
associate Rockcastle - (54 004)
- fair value (gain)/loss on
investment property of associates
and joint venture (23 720) 23 725
- impairment of goodwill on Capital
merger - 8 846 837
- impairment of goodwill on Lodestone
merger 1 707 -
- income tax effect (4 719) (119 530)
Headline earnings 3 629 025 2 928 512
Headline earnings per A share (cents) 165,79 181,38
Headline earnings per B share (cents) 165,79 181,38
Diluted earnings per share and diluted headline earnings per share are the
same as basic earnings per share and headline earnings per share as there
are no dilutionary instruments in issue.
Basic earnings per share and headline earnings per share are based on the
following weighted average shares in issue during the year:
Jun 2017 Jun 2016
- A share 1 143 654 442 835 699 554
- B share 1 045 272 298 778 829 752
5. Payment of final dividends
The board has approved and notice is hereby given of final dividends of
67,67 cents per A share and 93,41 cents per B share for the six months
ended 30 June 2017. The dividends are payable to Fortress shareholders in
accordance with the timetable set out below:
Last date to trade cum dividend Tuesday, 5 September 2017
Shares trade ex dividend Wednesday, 6 September 2017
Record date Friday, 8 September 2017
Payment date Monday, 11 September 2017
Share certificates may not be dematerialised or rematerialised between
Wednesday, 6 September 2017 and Friday, 8 September 2017, both days
inclusive. In respect of dematerialised shareholders, the dividend will be
transferred to the CSDP accounts/broker accounts on Monday, 11 September
2017. Certificated shareholders' dividend payments will be deposited on
or about Monday, 11 September 2017. An announcement informing shareholders
of the tax treatment of the dividend will be released separately on SENS.
Directors
Iraj Abedian (chairman); Jeff Zidel (deputy chairman); Mark Stevens*;
Rual Bornman*; Kura Chihota; Vuso Majija*; Tshiamo Matlapeng-Vilakazi;
Bongiwe Njobe; Jan Potgieter; Andrew Teixeira* (alternate: Steven Brown*);
Fareed Wania*; Banus van der Walt; Djurk Venter (*executive director)
Changes to the board of directors
On 15 May 2017 Vuso Majija was appointed to the board and Wiko Serfontein
resigned from the board. Bongiwe Njobe was appointed to the board on
7 June 2017.
Company secretary
Tamlyn Stevens
Registered address
3rd Floor Rivonia Village, Rivonia Boulevard, Rivonia, 2191
PO Box 138, Rivonia, 2128
Transfer secretaries
Link Market Services
South Africa Proprietary Limited, 13th Floor, Rennie House, 19 Ameshoff
Street Braamfontein, 2001
PO Box 4844, Johannesburg, 2000
Sponsor
Java Capital
Management accounts
Basis of preparation
In order to provide information of relevance to investors these management
accounts, which comprise financial information extracted from the audited
annual financial statements for the year ended June 2017, have been
prepared and are presented below to provide users with the position:
- Had the group's listed investments in Greenbay and Rockcastle that were
accounted for on the equity method for IFRS, been fair valued.
- Had the group's interest in Arbour Town, an associate, accounted for on
the equity method for IFRS, been proportionately consolidated.
- Had the group's interest in Mantraweb Investments, a joint venture,
accounted for on the equity method for IFRS, been proportionately
consolidated.
- Had the group accounted for its share of the assets, liabilities and
results of partially-owned subsidiaries (Cornubia, Bridge and Araxia) on
a proportionately consolidated basis instead of consolidating it.
The pro forma financial information (management accounts) has been
prepared in terms of the JSE Listings Requirements and the SAICA Guide
on pro forma financial information.
Directors' responsibility statement
The preparation of the management accounts is the sole responsibility of
the directors and have been prepared on the basis stated, for illustrative
purposes only, to show the impact on the summarised consolidated statement
of financial position and the summarised consolidated statement of
comprehensive income. Due to their nature the management accounts may not
fairly present the financial position and results of the group in terms
of IFRS.
Reporting accountant's opinion
The pro forma financial information has been reviewed by Deloitte & Touche
and their unmodified assurance report is available for inspection at
Fortress' registered address.
Summarised consolidated statement of financial position
Adj 2
Adj 1 Fair value
Fair value accounting for
accounting for investments
investments in associates
in associate - - listed
IFRS Arbour Town investments
Jun 2017 Jun 2017 Jun 2017
R'000 R'000 R'000
Assets
Non-current assets 60 144 415 411 3 583 365
Investment property 24 848 981 615 954
Straight-lining of
rental revenue
adjustment 364 862 11 225
Investment property
under development 3 282 103
Investment in and
loans to associates
and joint venture 12 860 576 (626 768) (12 062 680)
Investments 14 590 994 15 646 045
Fortress Share Purchase
Trust loans 764 254
Loans to BEE vehicles 3 432 645
Loans to co-owners -
Current assets 1 921 566 3 605 -
Investment property
held for sale 990 409
Straight-lining of rental
revenue adjustment 11 801
Fortress Share Purchase
Trust loans 22 344
Trade and other receivables 881 242 1 846
Cash and cash equivalents 15 770 1 759
Total assets 62 065 981 4 016 3 583 365
Equity and liabilities
Total equity attributable
to equity holders 45 074 462 - 3 583 365
Stated capital 45 072 151
Currency translation
reserve (134 149)
Reserves 136 460 3 583 365
Non-controlling interests 38 101
Total equity 45 112 563 - 3 583 365
Total liabilities 16 953 418 4 016 -
Non-current liabilities 14 951 626 - -
Interest-bearing
borrowings 13 804 864
Deferred tax 1 146 762
Current liabilities 2 001 792 4 016 -
Trade and other payables 1 001 482 4 016
Interest-bearing borrowings 1 000 310
Total equity and
liabilities 62 065 981 4 016 3 583 365
Adj 3 Adj 4
Proportionate Proportionate
consolidation consolidation
of investment of partially-
in joint owned Management
venture subsidiaries accounts
Jun 2017 Jun 2017 Jun 2017
R'000 R'000 R'000
Assets
Non-current assets (83) (62 464) 63 665 644
Investment property 124 500 (53 826) 25 535 609
Straight-lining of
rental revenue adjustment (3 014) 373 073
Investment property
under development (312 589) 2 969 514
Investment in and
loans to associates
and joint venture (171 128) -
Investments 30 237 039
Fortress Share Purchase
Trust loans 764 254
Loans to BEE vehicles 3 432 645
Loans to co-owners 46 545 306 965 353 510
Current assets 488 (14 082) 1 911 577
Investment property
held for sale 990 409
Straight-lining of
rental revenue adjustment 11 801
Fortress Share Purchase
Trust loans 22 344
Trade and other receivables 434 (11 710) 871 812
Cash and cash equivalents 54 (2 372) 15 211
Total assets 405 (76 546) 65 577 221
Equity and liabilities
Total equity attributable
to equity holders - - 48 657 827
Stated capital 45 072 151
Currency translation reserve (134 149)
Reserves 3 719 825
Non-controlling interests (38 101) -
Total equity - (38 101) 48 657 827
Total liabilities 405 (38 445) 16 919 394
Non-current liabilities - (36 292) 14 915 334
Interest-bearing borrowings (36 292) 13 768 572
Deferred tax 1 146 762
Current liabilities 405 (2 153) 2 004 060
Trade and other payables 405 (2 153) 1 003 750
Interest-bearing borrowings 1 000 310
Total equity and liabilities 405 (76 546) 65 577 221
Summarised consolidated statement of comprehensive income
Adj 2
Adj 1 Fair value
Fair value accounting for
accounting for investments
investments in associates
in associate - - listed
IFRS Arbour Town investments
for the for the for the
year ended year ended year ended
Jun 2017 Jun 2017 Jun 2017
Income statement R'000 R'000 R'000
Net rental and related
revenue 2 181 722 43 672 -
Recoveries and contractual
rental revenue 3 204 670 69 920
Straight-lining of rental
revenue adjustment 92 245 1 283
Rental revenue 3 296 915 71 203 -
Property operating
expenses (1 115 193) (27 531)
Income from investments 740 734 575 138
Fair value gain on
investment property,
investments and
currency derivatives 1 314 302 15 743 3 565 291
Fair value gain on
investment property 856 542 17 026
Adjustment resulting from
straight-lining of
rental revenue (92 245) (1 283)
Fair value (loss)/gain
on investments (223 138) 3 565 291
Fair value gain
on currency derivatives 773 143
Administrative expenses (122 694) (62)
Impairment of goodwill
on Lodestone merger (1 707)
Income from associates
and joint venture 640 113 (59 519) (557 064)
- distributable 634 467 (42 493) (575 138)
- non-distributable 5 646 (17 026) 18 074
Profit/(loss) before
net finance costs 4 752 470 (166) 3 583 365
Net finance costs (262 124) 166 -
Finance income 972 593 166 -
Interest received 972 593 166
Finance costs (1 234 717) - -
Interest on borrowings (1 398 418)
Capitalised interest 222 292
Fair value adjustment
on interest rate
derivatives (58 591)
Profit/(loss) before
income tax 4 490 346 - 3 583 365
Income tax (64 063)
Profit/(loss) for the
year attributable to
equity holders 4 426 283 - 3 583 365
Profit for the year
attributable to:
Equity holders of the
company 4 420 054 - 3 583 365
Non-controlling
interests 6 229
Total comprehensive income/
(loss) for the year 4 426 283 - 3 583 365
Adj 3 Adj 4
Proportionate Proportionate
consolidation consolidation
of investment of partially-
in joint owned Management
venture subsidiaries accounts
for the for the for the
year ended year ended year ended
Jun 2017 Jun 2017 Jun 2017
Income statement R'000 R'000 R'000
Net rental and related
revenue 12 143 (6 240) 2 231 297
Recoveries and
contractual rental
revenue 15 748 (4 056) 3 286 282
Straight-lining of
rental revenue
adjustment - (3 014) 90 514
Rental revenue 15 748 (7 070) 3 376 796
Property operating
expenses (3 605) 830 (1 145 499)
Income from investments 1 315 872
Fair value gain on
investment property,
investments and
currency derivatives 6 694 (6 563) 4 895 467
Fair value gain on
investment property 6 694 (9 577) 870 685
Adjustment resulting
from straight-lining of
rental revenue 3 014 (90 514)
Fair value (loss)/gain
on investments 3 342 153
Fair value gain
on currency derivatives 773 143
Administrative expenses (108) 42 (122 822)
Impairment of goodwill
on Lodestone merger (1 707)
Income from associates
and joint venture (23 530) - -
- distributable (16 836) -
- non-distributable (6 694) -
Profit/(loss) before
net finance costs (4 801) (12 761) 8 318 107
Net finance costs 4 801 6 532 (250 625)
Finance income (8 129) (4) 964 626
Interest received (8 129) (4) 964 626
Finance costs 12 930 6 536 (1 215 251)
Interest on borrowings 12 930 22 875 (1 362 613)
Capitalised interest (16 339) 205 953
Fair value adjustment on
interest rate derivatives (58 591)
Profit/(loss) before
income tax - (6 229) 8 067 482
Income tax (64 063)
Profit/(loss) for the
year attributable to
equity holders - (6 229) 8 003 419
Profit for the year
attributable to:
Equity holders of
the company - - 8 003 419
Non-controlling interests (6 229) -
Total comprehensive
income/(loss) for the year - (6 229) 8 003 419
Adj 1: This adjustment proportionately consolidates the indirect investments
in The Galleria and Arbour Crossing that are held through Arbour Town
(Fortress has a 25% interest), previously accounted for on the equity
method. It effectively discloses the group's interest in the assets,
liabilities and results of operations from these investments by
disclosing the consolidated management accounts for the year ended
June 2017 on a line-by-line basis.
Adj 2: The investments in Greenbay and Rockcastle are reflected at their
respective fair values by multiplying the 1 480 410 000 and 358 432 000
shares held respectively by their quoted closing prices at June 2017.
All entries relating to accounting for these investments on the equity
method are reversed. This more accurately reflects the group's loan-to-
value ratio and net asset value.
Adj 3: This adjustment proportionately consolidates the indirect
investment in Mthatha Residential that is held through Mantraweb
Investments (Fortress has a 60% interest), previously accounted for
on the equity method. It effectively discloses the group's interest
in the assets, liabilities and results of operations from this
investment by disclosing the consolidated management accounts for
the year ended June 2017 on a line-by-line basis.
Adj 4: This adjustment proportionately consolidates the indirect
investments in partially-owned subsidiaries (the indirect investments
in Bridge, Cornubia and Araxia) previously consolidated. It uses
the management accounts for the year ended June 2017 of Bridge,
Cornubia and Araxia to reverse the non-controlling interests to
reflect the group's interest in the assets, liabilities and
results of operations from these investments.
Shareholder spread at
30 June 2017 as defined in terms of the JSE Listings Requirements
Fortress - A shares
Percentage
Number Percentage Number of
of of of issued
shareholders shareholders shares held shares
Public 8 516 98,9% 1 148 606 397 97,7359%
Directors and
employees 95 1,1% 26 608 438 2,2641%
8 611 100,0% 1 175 214 835 100,0000%
Percentage
Number Percentage Number of
Size of of of of issued
holding shareholders shareholders shares held shares
1 to
2 500 shares 3 664 42,5% 3 345 252 0,2847%
2 501 to
10 000 shares 2 640 30,7% 14 230 730 1,2109%
10 001 to
100 000 shares 1 630 18,9% 48 232 329 4,1041%
100 001 to
1 000 000 shares 497 5,8% 155 313 442 13,2157%
1 000 001 to
3 500 000 shares 124 1,4% 222 521 866 18,9346%
More than
3 500 000 shares 56 0,7% 731 571 216 62,2500%
8 611 100,0% 1 175 214 835 100,0000%
Percentage
Number of
Registered shareholders owning 5% or more of issued
of issued shares shares held shares
Coronation Balanced Plus Fund 116 540 899 9,9166%
Government Employees Pension Fund 105 921 881 9,0130%
The Siyakha Education Trust 87 495 313 7,4450%
309 958 093 26,3746%
Percentage
Number of
of shares issued
Control of more than 5% of issued shares controlled shares
Coronation Fund Managers 279 540 228 23,7863%
Public Investment Corporation SOC Limited 125 706 952 10,6965%
The Siyakha Education Trust 87 495 313 7,4450%
492 742 493 41,9278%
Fortress - B shares
Percentage
Number Percentage Number of
of of of issued
shareholders shareholders shares held shares
Public 9 866 98,2% 782 304 339 72,6487%
Non-public 1 - 172 930 000 16,0591%
Directors and
employees 184 1,8% 121 598 352 11,2922%
10 051 100,0% 1 076 832 691 100,0000%
Percentage
Number Percentage Number of
Size of of of of issued
holding shareholders shareholders shares held shares
1 to
2 500 shares 5 286 52,6% 4 646 258 0,4315%
2 501 to
10 000 shares 2 678 26,6% 13 739 200 1,2759%
10 001 to
100 000 shares 1 455 14,5% 43 436 213 4,0337%
100 001 to
1 000 000 shares 493 4,9% 166 306 055 15,4440%
1 000 001 to
3 500 000 shares 90 0,9% 165 580 524 15,3766%
More than
3 500 000 shares 49 0,5% 683 124 441 63,4383%
10 051 100,0% 1 076 832 691 100,0000%
Percentage
Number of
Registered shareholders owning 5% or more of issued
of issued shares shares held shares
Resilient Properties Proprietary Limited 172 930 000 16,0591%
The Siyakha Education Trust 101 533 488 9,4289%
Government Employees Pension Fund 93 759 687 8,7070%
368 223 175 34,1950%
Percentage
Number of
of shares issued
Control of more than 5% of issued shares controlled shares
Resilient REIT Limited 172 930 000 16,0591%
Public Investment Corporation SOC Limited 107 636 164 9,9956%
The Siyakha Education Trust 101 533 488 9,4289%
382 099 652 35,4836%
Date: 08/08/2017 04:31:00 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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