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Condensed unaudited consolidated financial statements for the three and nine months ended 30 June 2017
Greenbay Properties Ltd
Incorporated in the Republic of Mauritius
Reg No C124756 C1/GBL
ISIN MU0461N00007
SEM share code: GFP.N0000 and JSE share code: GRP
("Greenbay" or "the company" or "the group")
www.greenbayprop.mu
Condensed unaudited consolidated financial statements for the three and nine
months ended 30 June 2017
Directors' commentary
Greenbay invests globally in direct property as well as in listed real estate
and infrastructure securities.
At 30 June 2017, Greenbay's portfolio comprised:
Sectoral profile based on fair value of assets
42,3% Listed infrastructure
34,6% Listed real estate
23,1% Direct property
Geographical profile based on fair value of assets
47,9% USA
37,9% Europe
6,9% Canada
5,1% Australia
1,5% Singapore
0,4% UK
0,3% Hong Kong
Summary of financial performance
Net asset
Dividend value per Loan-to-
per share Shares in share value
EUR cents issue EUR cents ratio*
Jun 2016 - 3 358 333 333 6,86 4,2%
Sep 2016 0,1136 4 920 833 333 7,80 -
Dec 2016 - 4 977 795 757 7,73 32,5%
Mar 2017 0,2308 6 302 299 068 8,66 6,5%
Jun 2017 - 7 037 912 566 8,74 20,7%
* 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. The ratio is based on
the management accounts.
The company's policy is to consider and declare dividends on a semi-annual
basis in March and September. As such no dividend was declared for the
quarter ended June 2017. The board remains confident of its dividend
guidance of 0,236 EUR cents per share for the second half of the
financial year. It is, however, expected that the distributable earnings
will exceed this expected dividend and in line with the dividend policy,
the excess will be retained. Greenbay expects 25% growth in dividends for
the 2018 financial year.
This forecast statement and the forecasts underlying such statement are
the responsibility of the board and have not been reviewed or reported on
by the company's external auditors. The forecast is based on the assumptions
that a stable global macro-economic environment will prevail and no failures
of listed real estate or infrastructure companies will occur.
Greenbay is currently evaluating further significant direct retail
opportunities in Europe.
By order of the board
Intercontinental Trust Limited
Company secretary
Mauritius
11 August 2017
Consolidated statement of comprehensive income
Unaudited Restated* Unaudited Restated*
for the for the for the for the
nine nine three three
months months months months
ended ended ended ended
Jun 2017 Jun 2016 Jun 2017 Jun 2016
Income statement EUR EUR EUR EUR
Net rental and
related revenue 3 358 619 77 391 1 044 224 25 360
Recoveries and
contractual rental
revenue 4 515 653 113 195 1 519 261 25 661
Straight-lining of
rental revenue
adjustment 1 122 - 4 -
Rental revenue 4 516 775 113 195 1 519 265 25 661
Property operating
expenses (1 158 156) (35 804) (475 041) (301)
Income from equity
derivatives 18 847 017 - 7 819 551 -
Income from
investments 148 425 - 111 845 -
Fair value (loss)/gain
on investment property,
investments and equity
derivatives (2 099 709) 4 974 969 (1 130 257) 4 974 969
Adjustment resulting
from straight-lining
of rental revenue (1 122) - (4) -
Fair value gain on
investments 808 736 - 502 059 -
Fair value (loss)/gain
on equity derivatives (2 907 323) 4 974 969 (1 632 312) 4 974 969
Operating expenses (1 438 834) (116 586) (667 313) (59 272)
Listing costs - (330 239) - (2 780)
Profit on sale of
subsidiary - 31 346 - 31 346
Foreign exchange
(loss)/gain (15 272 249) 16 083 357 (9 805 074) 16 177 621
Income from joint
venture 577 240 - 577 240 -
Profit/(loss) before net
finance (costs)/income 4 120 509 20 720 238 (2 049 784) 21 147 244
Net finance
(costs)/income (1 985 160) 219 018 (2 846 042) 241 753
Finance income 2 841 639 361 424 1 714 028 353 892
Interest on Greenbay
management incentive
loans 54 150 31 678 12 896 31 678
Interest received 2 787 489 329 746 1 701 132 322 214
Finance costs (4 826 799) (142 406) (4 560 070) (112 139)
Interest on borrowings (4 826 799) (142 406) (4 560 070) (112 139)
Profit/(loss) before
income tax 2 135 349 20 939 256 (4 895 826) 21 388 997
Income tax (795 583) (3 073) (289 875) (3 073)
Profit/(loss) for the
period attributable to
equity holders of the
company 1 339 766 20 936 183 (5 185 701) 21 385 924
Other comprehensive income
net of tax:
Items that may subsequently be
reclassified to profit or loss
Listed security investment fair
value adjustment - - - 118 226
- - - 118 226
Total comprehensive income/
(loss) for the period
attributable to equity
holders of the company 1 339 766 20 936 183 (5 185 701) 21 504 150
Basic earnings/(loss
per share (EUR cents) 0,02 6,91 (0,08) 2,47
Consolidated statement of financial position
Unaudited Restated* Restated*
Jun 2017 Sep 2016 Jun 2016
EUR EUR EUR
Assets
Non-current assets 146 152 731 75 716 763 9 937 608
Investment property 56 732 861 56 750 707 -
Straight-lining of rental
revenue adjustment 1 122 1 479 -
Investment property under
development 13 818 470 13 319 446 -
Investment in and loan to
joint venture 58 075 964 - -
Greenbay management incentive
loans 1 003 767 2 549 487 9 931 160
Investments 16 520 547 3 095 644 6 448
Current assets 505 319 827 310 058 034 220 885 403
Equity derivative margin 207 784 201 86 226 838 68 712 536
Trade and other receivables 4 024 002 7 534 350 4 817 015
Cash and cash equivalents 293 511 624 216 296 846 147 355 852
Total assets 651 472 558 385 774 797 230 823 011
Equity and liabilities
Total equity attributable to
equity holders 615 045 251 383 936 503 230 389 658
Stated capital 605 264 538 364 806 890 222 296 317
Non-distributable reserve 1 662 737 19 034 695 16 083 357
Currency translation reserve (11 028 765) (20 758 845) (12 962 467)
Retained earnings 19 146 741 20 853 763 4 972 451
Total liabilities 36 427 307 1 838 294 433 353
Non-current liabilities 25 500 069 - -
Interest-bearing borrowings 25 500 069 - -
Current liabilities 10 927 238 1 838 294 433 353
Interest-bearing borrowings 1 374 996 - -
Trade and other payables 9 050 537 1 706 317 430 458
Income tax payable 501 705 131 977 2 895
Total equity and liabilities 651 472 558 385 774 797 230 823 011
Total number of shares in
issue 7 037 912 566 4 920 833 333 3 358 333 333
Net asset value per share
(EUR cents) 8,74 7,80 6,86
* The restated figures are based on the audited financial statements for the
year ended September 2016 and the unaudited financial statements for the
three and nine months ended June 2016 and were adjusted from GBP to EUR.
Consolidated statement of cash flows
Unaudited Restated
for the nine for the nine
months months
ended ended
Jun 2017 Jun 2016
EUR EUR
Operating activities
Cash generated from operations 16 541 302 11 639 406
Interest received 2 787 489 -
Interest paid (4 826 799) (32 459)
Income tax paid (425 855) (178)
Dividends paid (687 939) -
Cash inflow from operating activities 13 388 198 11 606 769
Investing activities
Greenbay management incentive loans
repaid/(advanced) 1 599 870 (9 899 482)
(Acquisition)/disposal of listed
security investments (12 616 167) 595 279
Development of investment property (499 024) -
Disposal of subsidiary - 556 236
Loan to joint venture advanced (19 042 175) -
Investment in joint venture (38 483 224) -
Increase in equity derivative
position (124 464 686) (63 847 514)
Cash outflow from investing
activities (193 505 406) (72 595 481)
Financing activities
Increase/(decrease) in interest-
bearing borrowings 26 875 065 (169 937)
Raising of stated capital 230 456 921 208 143 768
Cash inflow from financing activities 257 331 986 207 973 831
Increase in cash and cash equivalents 77 214 778 146 985 119
Cash and cash equivalents at
beginning of the period 216 296 846 370 733
Cash and cash equivalents at end of
the period 293 511 624 147 355 852
Cash and cash equivalents consist of:
Current accounts 293 511 624 147 355 852
Consolidated statement of changes in equity
Non- Currency
Stated distrbutable translation
capital reserve reserve
EUR EUR EUR
Restated balance at
Sep 2015 1 190 082 29 958 -
Issue of shares:
- 9 765 210 shares on
27 Nov 2015 781 239
- 3 333 333 333 shares on
8 Jun 2016 220 324 996
Translation of historical
equity on change of
reporting currency (12 962 467)
Profit for the period
Transfer from non-
distributable reserve (29 958)
Transfer to non-
distributable reserve 16 083 357
Restated balance at
Jun 2016 222 296 317 16 083 357 (12 962 467)
Issue of shares:
- 1 562 500 000 shares
on 29 Sep 2016 142 510 573
Translation of historical
equity on change of
reporting currency (7 796 378)
Profit for the period
Tranfer to non-
distributable reserve 2 951 338
Restated balance at
Sep 2016 364 806 890 19 034 695 (20 758 845)
Issue of shares:
- 1 324 503 311 shares
on 27 Mar 2017 144 979 034
- 620 000 000 shares
on 12 Jun 2017 75 747 807
Translation of historical
equity on change of
reporting currency 9 730 080
Profit for the period
Dividend paid - final 2016 5 588 558
- scrip issue:
56 962 424 shares 5 588 558
- cash
Dividend paid - interim 2017 14 142 249
- scrip issue:
115 613 498 shares 14 142 249
- cash
Transfer from non-
distributable reserve (17 371 958)
Balance at Jun 2017 605 264 538 1 662 737 (11 028 765)
Retained Total
earnings equity
EUR EUR
Restated balance at Sep 2015 89 667 1 309 707
Issue of shares:
- 9 765 210 shares on 27 Nov 2015 781 239
- 3 333 333 333 shares on 8 Jun 2016 220 324 996
Translation of historical equity on
change of reporting currency (12 962 467)
Profit for the period 20 936 183 20 936 183
Transfer from non-distributable reserve 29 958 -
Transfer to non-distributable reserve (16 083 357) -
Restated balance at Jun 2016 4 972 451 230 389 658
Issue of shares:
- 1 562 500 000 shares on 29 Sep 2016 142 510 573
Translation of historical equity on
change of reporting currency (7 796 378)
Profit for the period 18 832 650 18 832 650
Tranfer to non-distributable reserve (2 951 338) -
Restated balance at Sep 2016 20 853 763 383 936 503
Issue of shares:
- 1 324 503 311 shares on 27 Mar 2017 144 979 034
- 620 000 000 shares on 12 Jun 2017 75 747 807
Translation of historical equity on
change of reporting currency 9 730 080
Profit for the period 1 339 766 1 339 766
Dividend paid - final 2016 (5 873 040) (284 482)
- scrip issue: 56 962 424 shares (5 588 558) -
- cash (284 482) (284 482)
Dividend paid - interim 2017 (14 545 706) (403 457)
- scrip issue: 115 613 498 shares (14 142 249) -
- cash (403 457) (403 457)
Transfer from non-distributable reserve 17 371 958 -
Balance at Jun 2017 19 146 741 615 045 251
Notes
1. Preparation and accounting policies
The condensed unaudited consolidated financial statements for the three and
nine months ended 30 June 2017 ("financial statements") have been prepared in
accordance with the measurement and recognition requirements of IFRS, the
requirements of IAS 34: Interim Financial Reporting, the Listings Requirements
of the JSE Limited ("JSE"), the Listing Rules of the Stock Exchange of
Mauritius Ltd ("SEM") and the Securities Act of Mauritius 2005.
The company is required to publish financial results for the three and nine
months ended 30 June 2017 in terms of Listing Rule 12.19 of the SEM.
Accordingly, this announcement presents the financial results of the group for
the period from 1 April 2017 to 30 June 2017, the period from 1 October 2016
to 30 June 2017, as well as the comparative results.
On 13 April 2017, the company announced that it had changed its reporting and
functional currency from Pounds Sterling ("GBP") to Euro ("EUR") as approved by
the Mauritian Registrar of Companies effective from 11 April 2017. As per IAS
21, the financial results of the company will subsequently be presented in EUR.
In order to satisfy the requirement of IAS 21 with respect to a change in
presentation currency, the comparative financial information was restated from
GBP to EUR using the following exchange rates:
Sep 2016 Jun 2016
EUR/GBP exchange rate
Closing 0,8661 0,8343
Average 0,8135 0,7859
Share capital was translated at the historic rates prevailing at the dates of
the underlying transactions.
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 September 2016.
This report was compiled under the supervision of Paul May CA(SA), the chief
financial officer.
These financial statements have not been reviewed or reported on by the
group's external auditors.
These financial statements were approved by the board of Greenbay on
10 August 2017.
This communique is issued pursuant to SEM Listing Rule 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 these
financial statements. The directors are not aware of any matters or
circumstances arising subsequent to 30 June 2017 that require any additional
disclosure or adjustment to the financial statements.
Copies of the financial statements and the statement of direct and indirect
interests of each officer of the company, pursuant to rule 8(2)(m) of the
Securities (Disclosure Obligations of Reporting Issuers) Rules 2007, are
available free of charge, upon request at Greenbay's registered office
address.
Contact person: Ms Smitha Algoo.
2. Investment in joint venture
On 31 May 2017, Greenbay acquired 50% of Locaviseu, the holding company of
Forum Coimbra and Forum Viseu, two retail centres in Portugal. The properties
were acquired at a yield of 6% and Resilient REIT Limited is Greenbay's joint
venture partner.
3. Segmental analysis
Unaudited Restated* Restated*
Jun 2017 Sep 2016 Jun 2016
Total assets EUR EUR EUR
UK 63 268 843 233 382 091 32 553 996
USA 112 484 203 68 612 843 114 048 956
Canada 1 790 593 917 551 14 857 363
Hong Kong 2 240 031 - -
Singapore 1 175 207 100 283 7 898 804
Europe 460 945 642 76 414 953 49 306 571
Australia 980 317 (104 921) 2 387 986
Corporate 8 587 722 6 451 997 9 769 335
651 472 558 385 774 797 230 823 011
Unaudited Restated*
for the nine for the nine
months ended months ended
Jun 2017 Jun 2016
Profit for the period EUR EUR
UK 902 980 (677 481)
USA 5 664 996 4 745 352
Canada 330 540 669 724
Hong Kong 3 896 -
Singapore 124 327 509 361
Europe 7 439 281 (382 799)
Australia 2 054 160 87 787
Corporate (15 180 414) 15 984 239
1 339 766 20 936 183
4. Headline earnings
Unaudited Restated*
for the nine for the nine
months ended months ended
Reconciliation of profit for the period Jun 2017 Jun 2016
to headline earnings EUR EUR
Basic earnings - profit for the period 1 339 766 20 936 183
Headline earnings 1 339 766 20 936 183
Weighted average shares in issue 5 480 133 586 302 773 904
Headline earnings per share (EUR cents) 0,02 6,91
Greenbay has no dilutionary instruments in issue.
Management accounts
Basis of preparation
In order to provide information of relevance to investors these management
accounts, which comprise financial information extracted from the condensed
unaudited consolidated financial statements for the three and nine months
ended 30 June 2017, have been prepared and are presented below to provide
users with the position:
- Had the equity investments held through derivative products been
accounted for on a grossed-up basis instead of only accounting for the margin;
and
- Had the group's interest in Locaviseu, the joint venture in Portugal
accounted for on the equity method for IFRS, been proportionately consolidated.
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 consolidated statement of financial
position and the 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 not been reviewed by reporting
accountants.
Consolidated statement of financial position
Adj 2
Propor-
tionate
consoli-
Adj 1 dation of
Equity investment
derivatives in joint Management
IFRS gross-up venture accounts
Jun 2017 Jun 2017 Jun 2017 Jun 2017
EUR EUR EUR EUR
Assets
Non-current assets 146 152 731 589 744 886 64 667 787 800 565 404
Investment property 56 732 861 113 000 000 169 732 861
Straight-lining of
rental revenue
adjustment 1 122 1 122
Investment property
under development 13 818 470 13 818 470
Investment in and
loan to joint
venture 58 075 964 (58 075 964) -
Greenbay management
incentive loans 1 003 767 1 003 767
Investments 16 520 547 589 744 886 606 265 433
Goodwill - 9 743 751 9 743 751
Current assets 505 319 827 - 4 105 440 509 425 267
Equity derivative
margin 207 784 201 (207 784 201) -
Trade and other
receivables 4 024 002 1 090 075 5 114 077
Cash and cash
equivalents 293 511 624 207 784 201 3 015 365 504 311 190
Total assets 651 472 558 589 744 886 68 773 227 1 309 990 671
Equity and
liabilities
Total equity
attributable to
equity holders 615 045 251 - - 615 045 251
Stated capital 605 264 538 605 264 538
Non-distributable
reserve 1 662 737 1 662 737
Currency
translation reserve (11 028 765) (11 028 765)
Retained earnings 19 146 741 19 146 741
Total liabilities 36 427 307 589 744 886 68 773 227 694 945 420
Non-current
liabilities 25 500 069 589 744 886 65 442 065 680 687 020
Interest-bearing
borrowings 25 500 069 589 744 886 51 350 000 666 594 955
Deferred tax - 14 092 065 14 092 065
Current liabilities 10 927 238 - 3 331 162 14 258 400
Interest-bearing
borrowings 1 374 996 1 374 996
Trade and other
payables 9 050 537 3 331 162 12 381 699
Income tax payable 501 705 501 705
Total equity and
liabilities 651 472 558 589 744 886 68 773 227 1 309 990 671
Consolidated statement of comprehensive income
Adj 2
Propor-
tionate
Adj 1 consoli-
Equity dation of
derivative investment Management
IFRS gross-up in joint accounts
for the for the venture for the
nine nine for the nine
months months nine months months
ended ended ended ended
Jun 2017 Jun 2017 Jun 2017 Jun 2017
EUR EUR EUR EUR
Income statement
Net rental and
related revenue 3 358 619 - 585 839 3 944 458
Recoveries and
contractual rental
revenue 4 515 653 787 196 5 302 849
Straight-lining of
rental revenue
adjustment 1 122 1 122
Rental revenue 4 516 775 - 787 196 5 303 971
Property operating
expenses (1 158 156) (201 357) (1 359 513)
Income from equity
derivatives 18 847 017 18 847 017
Income from investments 148 425 148 425
Fair value loss on
investment property,
investments and
equity
derivatives (2 099 709) - - (2 099 709)
Adjustment resulting
from straight-lining
of rental revenue (1 122) (1 122)
Fair value gain on
investments 808 736 808 736
Fair value loss on
equity derivatives (2 907 323) (2 907 323)
Operating expenses (1 438 834) (1 438 834)
Foreign exchange
loss (15 272 249) (15 272 249)
Income from joint
venture 577 240 (577 240) -
Profit before net
finance (costs)/
income 4 120 509 - 8 599 4 129 108
Net finance
(costs)/income (1 985 160) - 78 319 (1 906 841)
Finance income 2 841 639 - 156 638 2 998 277
Interest on Greenbay
management incentive
loans 54 150 54 150
Interest received 2 787 489 156 638 2 944 127
Finance costs (4 826 799) - (78 319) (4 905 118)
Interest on borrowings (4 826 799) 4 110 473 (78 319) (794 645)
Interest on equity
derivatives - (4 110 473) (4 110 473)
Profit before income
tax 2 135 349 - 86 918 2 222 267
Income tax (795 583) (86 918) (882 501)
Profit for the period 1 339 766 - - 1 339 766
Adj 1: The equity derivatives are grossed-up by multiplying the shares held in
each counter by the quoted closing price of the respective counter at June 2017.
This more accurately reflects the group's loan-to-value ratio.
Adj 2: This adjustment proportionately consolidates the indirect investments
in Forum Coimbra and Forum Viseu that are held through Locaviseu, 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 month of
June 2017 on a line-by-line basis. Greenbay is satisfied with the quality of
the financial information contained in the management accounts of Locaviseu.
Directors
Terry Warren (chairman); Stephen Delport (CEO)*; Paul May*; Jan Wandrag*;
Karen Bodenstein; Teddy Lo Seen Chong; Ronnie Porter; Mark Olivier
(*executive director)
Changes to the board of directors
There have been no changes to the board during the quarter.
Company secretary
Intercontinental Trust Limited
Registered address
C1-401, 4th Floor, La Croisette, Grand Baie, Mauritius
Transfer secretary in South Africa
Link Market Services South Africa Proprietary Limited
JSE sponsor
Java Capital
SEM authorised representative and sponsor
Perigeum Capital Ltd
Date: 11/08/2017 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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