Wrap Text
Condensed unaudited consolidated financial statements for the three months ended 31 December 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 months ended 31 December 2017
Nature of the business
Greenbay invests globally in direct property and infrastructure
assets as well as in listed real estate and infrastructure securities.
Summary of financial performance
Net asset
Dividend value Loan-
per share Shares in per share to-value
EUR cents issue EUR cents ratio*
Dec 2016 - 4 977 795 757 7,74 32,5%
Mar 2017 0,2308 6 302 299 068 8,66 6,5%
Jun 2017 - 7 037 912 566 8,74 20,7%
Sep 2017 0,2360 9 322 176 525 9,59 10,1%
Dec 2017 - 9 488 106 526 9,68 28,7%
* 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.
Comments
Greenbay is required to publish financial results for the quarter ended
31 December 2017 in terms of Listing Rule 12,20 of the Stock Exchange of
Mauritius ("SEM"). Accordingly, this announcement presents the condensed
unaudited consolidated financial results of the group in respect of the
financial period from 1 October 2017 to 31 December 2017 as well as
comparatives. The dividend guidance, and the assumptions on which this was
based, as previously announced in the company’s audited consolidated annual
financial statements for the year ended 30 September 2017 remain unchanged.
By order of the board
Intercontinental Trust Limited
Company secretary
Mauritius - 2 February 2018
Condensed consolidated statement of financial position
Unaudited Audited Restated1
Dec 2017 Sep 2017 Dec 2016
EUR EUR EUR
Assets
Non-current assets 407 428 255 290 757 701 74 926 313
Investment property 57 498 861 57 498 838 56 733 830
Straight-lining of rental
revenue adjustment 1 139 1 162 1 457
Investment property under
development 13 942 548 13 942 548 13 532 480
Investment in and loans to
joint venture 60 221 656 59 361 010 -
Greenbay share incentive
loans 6 155 266 505 679 1 031 833
Investments 269 608 785 159 448 464 3 626 713
Current assets 547 709 898 644 871 133 339 072 852
Equity derivative margin 84 411 931 233 825 666 145 629 839
Trade and other
receivables 18 591 208 4 457 081 16 735 850
Cash and cash equivalents 444 706 759 406 588 386 176 707 163
Total assets 955 138 153 935 628 834 413 999 165
Equity and liabilities
Total equity attributable
to equity holders 918 225 348 893 778 890 385 074 614
Stated capital 917 719 017 892 382 767 370 395 448
Non-distributable reserve (23 845 078) (36 075 289) 18 277 554
Currency translation
reserve (11 028 764) (11 028 779) (14 243 157)
Retained earnings 35 380 173 48 500 191 10 644 769
Total liabilities 36 912 805 41 849 944 28 924 551
Non-current liabilities 24 855 097 25 144 714 26 172 528
Interest-bearing
borrowings 24 438 463 24 714 857 26 172 528
Deferred tax 416 634 429 857 -
Current liabilities 12 057 708 16 705 230 2 752 023
Interest-bearing
borrowings 1 374 996 1 374 996 1 374 996
Trade and other payables 9 704 123 14 670 411 1 053 819
Income tax payable 978 589 659 823 323 208
Total equity and
liabilities 955 138 153 935 628 834 413 999 165
Total number of shares
in issue 9 488 106 526 9 322 176 525 4 977 795 757
Net asset value per
share (EUR cents) 9,68 9,59 7,74
Condensed consolidated statement of comprehensive income
Unaudited Restated1
for the for the
three months three months
ended ended
Dec 2017 Dec 2016
Income statement EUR EUR
Net rental and related revenue 983 714 1 157 526
Recoveries and contractual rental
revenue 1 527 718 1 495 306
Straight-lining of rental revenue
adjustment 1 139 1 457
Rental revenue 1 528 857 1 496 763
Property operating expenses (545 143) (339 237)
Income from equity derivatives 9 783 428 4 453 696
Income from investments 1 095 264 -
Fair value gain/(loss) on
investment property, investments
and equity derivatives 15 135 472 (8 664 393)
Adjustment resulting from straight-
lining of rental revenue (1 139) (1 457)
Fair value gain on investments 5 862 391 236 003
Fair value gain on currency
derivatives 1 419 193 -
Fair value gain/(loss) on equity
derivatives 7 855 027 (8 898 939)
Administrative expenses (579 322) (313 975)
Foreign exchange loss (2 894 512) (757 141)
Income from joint venture 1 044 270 -
Profit/(loss) before net
finance costs 24 568 314 (4 124 287)
Net finance costs (3 152 966) (767 709)
Finance income 264 852 402 726
Interest on share incentive loans 11 017 28 367
Interest received 253 835 374 359
Finance costs (3 417 818) (1 170 435)
Interest on borrowings (3 405 930) (1 170 435)
Fair value adjustment on interest
rate derivatives (11 888) -
Profit/(loss) before income tax 21 415 348 (4 891 996)
Income tax (304 818) (201 099)
Profit/(loss) for the period
attributable to equity holders
of the company 21 110 530 (5 093 095)
Other comprehensive income
net of tax:
Items that may subsequently be
reclassified to profit or loss
Exchange differences on
translation of foreign
operations - subsidiaries 15 -
15 -
Total comprehensive income/(loss)
for the period attributable
to equity holders of the company 21 110 545 (5 093 095)
Basic earnings/(loss) per
share (EUR cents) 0,23 (0,10)
1 The restated figures are based on the audited consolidated financial
statements for the year ended September 2016 and the unaudited
consolidated financial statements for the three months ended
December 2016 and were translated from GBP to EUR.
Condensed consolidated statement of cash flows
Unaudited Restated1
for the for the
three months three months
ended ended
Dec 2017 Dec 2016
EUR EUR
Operating activities
Cash utilised in operations (9 163 861) (5 298 450)
Interest received 253 835 374 359
Finance costs (3 405 930) (1 170 435)
Income tax paid (134 797) (9 868)
Dividends paid (2 339 413) (284 482)
Cash outflow from operating
activities (14 790 166) (6 388 876)
Investing activities
Share incentive loans
(advanced)/repaid (5 638 570) 1 546 021
Acquisition of listed security
investments (104 297 930) (295 066)
Development of investment property - (213 034)
Loans to joint venture advanced (99 065) -
Decrease/(increase) in equity
derivative position 157 268 778 (61 786 252)
Cash inflow/(outflow) from
investing activities 47 233 213 (60 748 331)
Financing activities
Increase in interest-bearing
borrowings - 27 547 524
Proceeds from share issuances 5 675 326 -
Cash inflow from financing activities 5 675 326 27 547 524
Increase/(decrease) in cash and
cash equivalents 38 118 373 (39 589 683)
Cash and cash equivalents at
beginning of the period 406 588 386 216 296 846
Cash and cash equivalents at
end of the period 444 706 759 176 707 163
Cash and cash equivalents
consist of:
Current accounts 444 706 759 176 707 163
The net cash outflow from operating activities at December 2017 resulted
mainly from dividends paid in cash (EUR2,3 million) and equity derivative
mark to market resets included in receivables (EUR12,3 million).
Condensed consolidated statement of changes in equity
Non- Currency
Stated distributable translation
capital reserve reserve
EUR EUR EUR
Restated1 at Sep 2016 364 806 890 19 034 695 (20 758 845)
Translation of historical
equity on change of
presentation currency 6 515 688
Loss for the period
Dividend paid
- Dec 2016 5 588 558
- scrip issue
- 56 962 424 shares 5 588 558
- cash
Transfer to non-
distributable reserve (757 141)
Restated1 at Dec 2016 370 395 448 18 277 554 (14 243 157)
Issue of shares 507 845 070
Translation of historical
equity on change of
presentation currency 3 214 392
Exchange differences on
translation of foreign
operations (14)
Loss for the period
Dividend paid - Jun 2017 14 142 249
- scrip issue
- 115 613 498 shares
on 14 Jun 2017 14 142 249
- cash
Transfer to non-
distributable reserve (54 352 843)
Balance at Sep 2017 892 382 767 (36 075 289) (11 028 779)
Issue of shares - 36 414
535 shares on 14 Dec 2017 5 675 326
Dividend paid - Dec 2017 19 660 924
- scrip issue
- 129 515 466 shares
on 20 Dec 2017 19 660 924
- cash
Exchange differences on
translation of foreign
operations 15
Profit for the period
Transfer to non-
distributable reserve 12 230 211
Balance at Dec 2017 917 719 017 (23 845 078) (11 028 764)
Retained Total
earnings equity
EUR EUR
Restated1 at Sep 2016 20 853 763 383 936 503
Translation of historical equity on
change of reporting currency 6 515 688
Loss for the period (5 093 095) (5 093 095)
Dividend paid - Dec 2016 (5 873 040) (284 482)
- scrip issue - 56 962 424 shares (5 588 558) -
- cash (284 482) (284 482)
Transfer to non-distributable reserve 757 141 -
Restated1 at Dec 2016 10 644 769 385 074 614
Issue of shares 507 845 070
Translation of historical equity on
change of reporting currency 3 214 392
Exchange differences on translation of
foreign operations (14)
Loss for the period (1 951 715) (1 951 715)
Dividend paid - Jun 2017 (14 545 706) (403 457)
- scrip issue - 115 613 498 shares on 14
June 2017 (14 142 249) -
- cash (403 457) (403 457)
Transfer to non-distributable reserve 54 352 843 -
Balance at Sep 2017 48 500 191 893 778 890
Issue of shares - 36 414 535 shares on 14
Dec 2017 5 675 326
Dividend paid - Dec 2017 (22 000 337) (2 339 413)
- scrip issue - 129 515 466 shares on 20
December 2017 (19 660 924) -
- cash (2 339 413) (2 339 413)
Exchange differences on translation of
foreign operations 15
Profit for the period 21 110 530 21 110 530
Transfer to non-distributable reserve (12 230 211) -
Balance at Dec 2017 35 380 173 918 225 348
Notes
1. Preparation and accounting policies
The condensed unaudited consolidated financial statements for the three months
ended 31 December 2017 have been prepared in accordance with the measurement
and recognition requirements of IFRS, the requirements of IAS 34: Interim
Financial Reporting, the JSE Listings Requirements, the SEM Listing Rules
and the Securities Act of Mauritius 2005.
The accounting policies applied in the preparation of the condensed unaudited
consolidated financial statements, are consistent with those applied in the
preparation of the audited consolidated financial statements for the year
ended 30 September 2017.
The company is required to publish financial results for the three months
ended 31 December 2017 in terms of Listing Rule 12,20 of the SEM. This report
was compiled under the supervision of Kobus van Biljon CA(SA), the chief
financial officer.
On 13 April 2017, the company announced that it had changed its presentation
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 Dec 2016
EUR/GBP exchange rate
Closing 0,8661 0,8535
Average 0,8135 0,8677
Share capital was translated at the historic rates prevailing at the
dates of the underlying transactions.
These financial statements were approved by the board of Greenbay on
2 February 2018.
These condensed consolidated inancial statements have not been audited,
reviewed or reported on by the company's external auditor.
In terms of IAS 39: Financial Instruments: Recognition and measurement and
IFRS 7, the group’s currency and interest rate derivatives as well as the
equity derivatives 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.
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 31 December 2017 that require any
additional disclosure or adjustment to the financial statements.
Copies of the condensed consolidated unaudited 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: Jan Wandrag.
2. Equity derivative margin
In addition to cash, Greenbay utilises its direct listed equity investments
as collateral for the group’s equity derivative exposure. At 31 December 2017,
the total equity derivative margin requirement was EUR302 846 904
(30 September 2017: EUR233 825 666).
3. Segmental analysis
Unaudited Audited Restated1
Dec 2017 Sep 2017 Dec 2016
Total assets EUR EUR EUR
Australia 7 946 992 1 781 607 1 149 062
Canada 105 715 1 344 166 552 562
Europe 763 543 049 797 174 578 159 786 475
Hong Kong 26 040 254 9 656 029 -
Singapore 1 744 038 1 466 401 (390 699)
UK 4 453 576 4 738 221 130 162 311
USA 132 956 716 110 977 339 120 135 065
Corporate 18 347 813 8 490 493 2 604 389
955 138 153 935 628 834 413 999 165
Unaudited Restated1
for the for the
three months three months
ended ended
Dec 2017 Dec 2016
Profit/(loss) for the period EUR EUR
Australia 6 864 052 770 025
Canada (1 672 530) (169 241)
Europe 7 178 817 (3 722 044)
Hong Kong (676 258) -
Singapore 729 200 (1 322 283)
UK (298 603) (26 118)
USA 11 112 747 361 232
Corporate (2 126 895) (984 666)
21 110 530 (5 093 095)
All net rental and related revenue is included in the Europe segment.
4. Headline earnings
Unaudited Restated1
for the for the
year ended year ended
Reconciliation of profit/(loss) for the Dec 2017 Dec 2016
period to headline earnings/(loss) EUR EUR
Basic earnings - profit/(loss) for the
period attributable to equity holders 21 110 530 (5 093 095)
Adjusted for:
- fair value loss on investment
property
- included from joint venture 139 303 -
- income tax effect (35 522) -
Headline earnings/(loss) 21 214 311 (5 093 095)
Weighted average shares in issue 9 346 194 430 4 936 931 409
Headline earnings/(loss) per share
(EUR cents) 0,23 (0,10)
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 months ended
31 December 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 using 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.
This pro forma financial information has not been reviewed or reported on
by Greenbay's auditor.
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 condensed consolidated statement
of financial position and the condensed 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.
Management account adjustments
Adjustment 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
December 2017. This more accurately reflects the group's assets and
liabilities.
Adjustment 2
This adjustment proportionately consolidates the indirect investments
in Forum Coimbra and Forum Viseu that are held through Locaviseu,
accounted for using 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
three months ended December 2017 on a line-by-line basis. Greenbay is
satisfied with the quality of the financial information contained in
the management accounts of Locaviseu.
Condensed consolidated statement of financial position
Adjustment 2
Propor-
tionate
consoli-
dation
Adjustment 1 of
Equity investment
derivatives in joint Management
IFRS gross-up venture accounts
Dec 2017 Dec 2017 Dec 2017 Dec 2017
EUR EUR EUR EUR
Assets
Non-current assets 407 428 255 825 144 348 63 165 167 1 295 737 770
Investment
property 57 498 861 113 000 000 170 498 861
Straight-lining of
rental revenue
adjustment 1 139 1 139
Investment property
under development 13 942 548 13 942 548
Investment in and
loan to joint
venture 60 221 656 (60 221 656) -
Greenbay share
incentive loans 6 155 266 6 155 266
Investments 269 608 785 825 144 348 1 094 753 133
Goodwill - 10 386 823 10 386 823
Current assets 547 709 898 - 5 877 147 553 587 045
Equity derivative
margin 84 411 931 (84 411 931) -
Trade and other
receivables 18 591 208 1 795 414 20 386 622
Cash and cash
equivalents 444 706 759 84 411 931 4 081 733 533 200 423
Total assets 955 138 153 825 144 348 69 042 314 1 849 324 815
Equity and liabilities
Total equity
attributable to
equity holders 918 225 348 - - 918 225 348
Stated capital 917 719 017 917 719 017
Non-distributable
reserve (23 845 078) (23 845 078)
Currency
translation
reserve (11 028 764) (11 028 764)
Retained earnings 35 380 173 35 380 173
Total liabilities 36 912 805 825 144 348 69 042 314 931 099 467
Non-current
liabilities 24 855 097 825 144 348 65 160 398 915 159 843
Interest-bearing
borrowings 24 438 463 825 144 348 50 632 205 900 215 016
Deferred tax 416 634 14 528 193 14 944 827
Current liabilities 12 057 708 - 3 881 916 15 939 624
Interest-bearing
borrowings 1 374 996 1 374 996
Trade and other
payables 9 704 123 3 881 916 13 586 039
Income tax payable 978 589 978 589
Total equity and
liabilities 955 138 153 825 144 348 69 042 314 1 849 324 815
Condensed consolidated statement of comprehensive income
Adjustment 2
Propor-
tionate
consoli-
dation
Adjustment 1 of
Equity investment
derivatives in joint Management
IFRS gross-up venture accounts
for the for the for the for the
three months three months three months three months
ended ended ended ended
Dec 2017 Dec 2017 Dec 2017 Dec 2017
Income statement EUR EUR EUR EUR
Net rental and
related revenue 983 714 - 1 751 127 2 734 841
Recoveries and
contractual
rental revenue 1 527 718 2 469 812 3 997 530
Straight-lining
of rental revenue
adjustment 1 139 1 139
Rental revenue 1 528 857 - 2 469 812 3 998 669
Property operating
expenses (545 143) (718 685) (1 263 828)
Income from equity
derivatives 9 783 428 9 783 428
Income from
investments 1 095 264 1 095 264
Fair value gain
on investment
property, investments
and equity derivatives 15 135 472 - - 15 135 472
Adjustment resulting
from straight-lining
of rental revenue (1 139) (1 139)
Fair value gain
on investments 5 862 391 5 862 391
Fair value gain
on currency
derivatives 1 419 193 1 419 193
Fair value gain
on equity
derivatives 7 855 027 7 855 027
Administrative
expenses (579 322) (33 766) (613 088)
Foreign exchange
loss (2 894 512) (2 894 512)
Income from joint
venture 1 044 270 (1 044 270) -
Profit before net
finance costs 24 568 314 - 673 091 25 241 405
Net finance costs (3 152 966) - (363 949) (3 516 915)
Finance income 264 852 - - 264 852
Interest on share
incentive loans 11 017 11 017
Interest received 253 835 - 253 835
Finance costs (3 417 818) - (363 949) (3 781 767)
Interest on
borrowings (3 405 930) 2 929 164 (363 949) (840 715)
Fair value adjustment
on interest rate
derivatives (11 888) (11 888)
Interest on
equity
derivatives - (2 929 164) (2 929 164)
Profit before
income tax 21 415 348 - 309 142 21 724 490
Income tax (304 818) (309 142) (613 960)
Profit for the
period 21 110 530 - - 21 110 530
Directors
Terry Warren (chairman); Stephen Delport (CEO)*; Kobus van Biljon*;
Jan Wandrag* Karen Bodenstein; Teddy Lo Seen Chong; Barry Stuhler;
Mark Olivier
(*executive director)
There were no changes to the board of directors during the quarter
Company secretary
Intercontinental Trust Ltd
Registered address
C1-401, 4th Floor, La Croisette, Grand Baie, Mauritius
Transfer secretary in South Africa
Link Market Services South Africa Proprietary Ltd
JSE sponsor
Java Capital
SEM authorised representative and sponsor
Perigeum Capital Ltd
Date: 02/02/2018 01:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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