Wrap Text
Unaudited results for six months ended 31 March 2018
INDLUPLACE PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2013/226082/06)
JSE share code: ILU ISIN: ZAE000201125
(Approved as a REIT by the JSE)
("Indluplace" or "the company" or "the Group")
UNAUDITED RESULTS FOR SIX MONTHS ENDED 31 MARCH 2018
Portfolio growth of 82% year on year
Largest focused residential REIT
Diverse and defensive portfolio delivering in difficult market
Nature of business
Indluplace is the first focused residential REIT listed on the main board of the JSE. In almost three years since listing
it has grown its residential portfolio by over 260% to 9 662 units. It is Indluplace's stated intention to continue growing
the portfolio aggressively by focusing on acquiring yield enhancing properties and portfolios that provide income from the
day of acquisition and to pay growing dividends to its shareholders. Indluplace is positioned to assist in overcoming the
shortage of rental housing in South Africa by providing an exit for developers and owners of residential stock or portfolios
which may reinvest the capital in new developments. By utilising specialist outsourced property managers for the respective
portfolios, Indluplace ensures that its growing portfolio remains professionally managed to maintain returns while providing
value for money accommodation to all its customers.
Summarised distributable income analysis
for the period ended
UNAUDITED FOR UNAUDITED FOR AUDITED FOR
THE 6 MONTHS THE 6 MONTHS THE YEAR
ENDED ENDED ENDED
R 31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
Contractual rental income 282 522 683 156 784 816 330 048 127
Net property expenses (77 624 882) (36 474 094) (73 952 618)
Net property income 204 897 801 120 310 722 256 095 509
DISTRIBUTABLE INCOME
Amount available for distribution* 154 738 052 117 451 114 266 786 847
Distributed for the half year/quarter ended:
3 months ended 31 December - (57 654 491) (57 654 491)
3 months ended 31 March - (59 796 623) (59 796 630)
6 months ended 31 March (154 738 052) (117 451 114) (117 451 121)
3 months ended 30 June - - (71 505 648)
3 months ended 30 September - - (77 830 078)
6 months ended 30 September - - (149 335 726)
Total distributed 154 738 052 117 451 114 266 786 847
DIVIDEND FOR HALF YEAR ENDED 31 MARCH AND YEAR ENDED 30 SEPTEMBER CENTS CENTS CENTS
3 months ended 31 December - 23,82951 23,82951
3 months ended 31 March - 24,71489 24,71489
6 months ended 31 March 48,56125 48,54440 48,54440
3 months ended 30 June - - 24,72452
3 months ended 30 September - - 24,48003
6 months ended 30 September - - 49,20455
Total distributed per share 48,56125 48,54440 97,74895
Property expense ratio - net (%) 27,5 23,3 22,4
Net asset value per share (cents) 1 048,95 1 024,32 1 029,98
SHARES USED IN CALCULATION OF THE DIVIDENDS FOR THE PERIODS ENDED:
31 December - 241 945 767 241 945 767
31 March 318 645 117*^ 241 945 767 241 945 767#
30 June - - 289 209 449
30 September - - 317 932 853
* In line with the announcement released on SENS on 22 January 2018, dividends will be paid twice a year compared to
quarterly as in previous periods.
# Includes the 28 723 404 shares issued during October 2017.
^ Per IFRS 2, 22 440 285 shares have been excluded from the number of shares in issue at 31 March 2018. See note under
investment properties.
COMMENTARY
In a period characterised by difficult market conditions; delays with resolving the partial rent boycott in Windsor;
and a complex handover of the very large Buffet portfolio, Indluplace was again able to demonstrate the defensive nature
of its diverse residential portfolio, and, despite a tough first period, remains on track to deliver dividends for the
full year in line with the lower end of guidance.
Although vacancies increased over the period, spiking during December and January, our active asset management, including an
intensive marketing strategy, had reduced these by the end of March 2018, and vacancies have fallen further since the period end.
Solid progress has been made in resolving Windsor and we are now in a position to begin re-letting units - with the benefits
of this expected to start reflecting in the second half of the year. We were also able to negotiate a short-term rental guarantee
over the Buffet portfolio to cater for certain handover issues, with the result that these issues have not effected Indluplace's
income during the period. Given the headwinds experienced, we are happy with the performance of the portfolio over the period, and
satisfied that we are on a solid base to continue to provide sustainable, defensive income in the coming years.
Revenue
Total revenue includes contractual rental income and expenditure that is recoverable from tenants. Revenue, excluding straight
line rental income, has increased from R195,0 million to R334,7 million for the period ended 31 March 2018 as the full effect
of the acquisitions concluded during the current and previous financial year, as well as rental escalations are taken into account.
Property portfolio
6 MONTHS ENDED 6 MONTHS ENDED 12 MONTHS ENDED
31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
Residential Buildings 171 117 125
Units 9 662 5 511 6 859
Vacancy (%) 6,3 4,5 3,5
Retail GLA - m2 17 764 12 647 14 803
Vacancy (%) 1,5 9,6 1,0
RESIDENTIAL UNIT SPREAD % RESIDENTIAL UNIT CATEGORY % RESIDENTIAL BUILDING TYPE %
Johannesburg suburbs 48 Rooms 5 High rise 29
Johannesburg inner city 32 Bachelors 14 Walk-up 71
Pretoria/Midrand 10 One bed 22
Witbank 5 Two Bed 48
Vanderbijlpark 5 Three bed 9
Other 2
100 100 100
Vacancies have increased from 4,5% at 31 March 2017, being the comparable reporting period, to 6,3%. There has been an improvement
to the end of March 2018.
Property expenses
Property expenses have increased from R74,7 million to R129,8 million for the period ended 31 March 2018, which is in line with the
increased property portfolio. The net property expense ratio of 27,5% is in line with expectations and the nature of the current portfolio.
Administration costs
Administration costs have increased from R5,9 million to R7,4 million for the period ended 31 March 2018, which is in line with the increased
expansion of the company's management team.
Finance income
6 MONTHS ENDED 6 MONTHS ENDED 12 MONTHS ENDED
R 31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
Interest on indluplace share purchase and option scheme 10 263 766 9 365 374 18 662 768
Interest received on cash balances 4 342 174 1 992 222 12 728 274
14 605 940 11 357 596 31 391 042
Finance income has increased from R11,4 million to R14,6 million for the period ended 31 March 2018. The interest received
on cash balances has increased as a result of increased billings and the placing of excess funds in deposit facilities.
Finance charges
6 MONTHS ENDED 6 MONTHS ENDED 12 MONTHS ENDED
R 31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
Interest paid on secured financial liabilities & swaps 57 866 129 8 332 679 17 897 726
Interest paid on cash balances 40 057 - 8 109 271
57 906 186 8 332 679 26 006 997
Finance charges increased from R8,3 million to R57,9 million for the period ended 31 March 2018, as a result of the Buffet
transaction. The transaction was funded by way of a joint loan facility of R1,3 billion by ABSA and Investec Bank, in
addition to a R200 million Standard Bank facility. The details of the facilities have been included below.
Investment property
The increase in investment property relates to the acquisition for R1,4 billion of the Buffet Group residential portfolio
(as announced on Sens on 20 June 2017) comprising 2 803 units spread over 48 properties, including the two properties where
the 50% not already owned by Indluplace, were acquired. This increased the number of residential properties in the portfolio to 171.
In addition to the 12 495 936 vendor shares issued to the Buffet Group of entities to discharge the purchase price, an additional
22 440 285 shares valued at R240,8 million were issued to the Buffet Group pursuant to the transaction. Indluplace provided the
funding to the Buffet Group for the purchase of these 22 440 285 shares. The funding is secured by the pledge of shares issued
to the Buffet Group and bears interest at a rate equal to the dividends received on those shares. The security will be released
on the payment of the outstanding amounts which can take place from year 3, but the loans must be settled by year 10. The issue
of shares using the proceeds of a loan made by the share issuer, when the loan is recourse only to the shares, is treated as an
option grant in which options are exercised on the date or dates when the loan is repaid. This is based on an International Financial
Reporting Interpretations Committee agenda decision issued in November 2005. This option grant is accounted for in terms of IFRS 2,
more specifically as an equity-settled share-based payment, valued using a Black Scholes option pricing model. The issue of these options
to the Buffet Group was considered to be part of the acquisition costs of the properties and has therefore been capitalised to the cost of
the investment property. A further impact of this is that the shares are not treated as in issue, until such time as the debt is settled.
Trade and other receivables
Trade and other receivables increased from R68,7 million to R133,7 million for the period ended 31 March 2018, which is in line with
the increased size of the portfolio. Of this amount, net trade receivables amounts to R4,8 million which is comparable to 30 September 2017.
The remaining balance comprises municipal deposits, amounts receivable from property managers and the interest element relating
to the loans to participants of the Indluplace share purchase and option scheme. Cash in excess of R80,8 million, held by the
company's property managers in trust accounts, is included in the aforesaid balance.
Cash and cash equivalents
Cash and cash equivalents decreased from R40,9 million to R4,4 million as at 31 March 2018. The decrease in cash is due to
excess funds being deposited into debt facilities.
Secured financial liabilities and derivative instruments
Loan facility in terms of which Indluplace entered into a R1,3 billion facility, comprising a R100,0 million access facility, a
R685,7 million 3 year loan and a R514,3 million 5 year loan. In total Indluplace is able to draw on a R1,5 billion facility, when
taking into account the R200 million Standard Bank 3 year facility. At 31 March 2018, Indluplace had drawn only R1,3 billion of total
facilities to date.
The fair value adjustment of the interest rate swaps amounting to R10,8 million is included in secured financial liabilities.
MATURITY FIXED RATE % 3 MONTH JIBAR % PRIME MARGIN % CAPITAL
September 2019 10,11 - - 150 000 000
October 2020 - - (1,35) 7 000 000
October 2020 9,28 - - 550 050 042
October 2020 9,51 - - 56 969 975
October 2020 - 2,05 - 78 694 268
October 2022 9,94 - - 289 958 763
October 2022 - 2,20 - 163 274 955
1 295 948 003
Trade and other payables
Trade and other payables increased from R65,3 million to R101,2 million as at 31 March 2018, mainly as a result of
the Buffet portfolio acquisition. The balance comprises trade payables and accruals of R42,1 million, prepayment of tenant rentals
of R16,6 million and deposits from tenants amounting to R42,5 million.
Change in directorate
As published on SENS on 13 October 2017, Yondela Silimela was appointed to the board of directors with effect from 1 November 2017.
Prospects
The board of directors acknowledges the difficult environment in which Indluplace operates. Given the defensive nature of it's diverse
residential portfolio, coupled with strong, hands-on management and with the strong fundamentals in this sector, Indluplace expects to
deliver full year dividend growth of around 4% which is in line with previous guidance. The board of directors is confident that ample
opportunities for acquisitions exist and that Indluplace will grow the portfolio substantially over the next few years.
This forecast has not been reviewed or reported on by the company's auditors. Given the nature of its business, Indluplace uses dividend
per share as its key performance measure as it is considered to be a more relevant performance measure than earnings or headline earnings
per share.
Payment of dividend for the 6 months ended 31 March 2018
The board of directors has declared a gross dividend of 48,56125 cents per share (dividend number 11) for the six months ended 31 March 2018,
in accordance with the timetable set out below:
Last date to trade cum dividend
Tuesday, 29 May 2018
Shares trade ex dividend
Wednesday, 30 May 2018
Record date
Friday, 1 June 2018
Payment date
Monday, 4 June 2018
Shares may not be dematerialised or rematerialised between Wednesday, 30 May 2018 and Friday, 1 June 2018, both days inclusive. Payment of the
dividend will be made to shareholders on Monday, 4 June 2018. In respect of dematerialised shares, the dividend will be transferred to the CSDP/
broker accounts on Monday, 4 June 2018. Certificated shareholders' dividend payment will be deposited on or about Monday, 4 June 2018.
Tax treatment of dividend
In accordance with Indluplace's status as a REIT, shareholders are advised that the dividend meets the requirements of a "qualifying distribution"
for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 ("Income Tax Act"). The distribution on shares will be deemed to be a
dividend, for South African tax purposes, in terms of section 25BB of the Income Tax Act. The dividend received by or accrued to South African tax
residents must be included in the gross income of such shareholders and will not be exempt from income tax (in terms of the exclusion to the
general dividend exemption, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because they are dividends distributed
by a REIT. This dividend is, however, exempt from dividends withholding tax in the hands of South African tax resident shareholders, provided
that the South African resident shareholders provided the following forms to their Central Securities Depository Participant ("CSDP") or broker,
as the case may be, in respect of uncertificated shares, or the company, in respect of certificated shares: a) a declaration that the dividend is
exempt from dividends tax; and b) a written undertaking to inform the CSDP, broker or the company, as the case may be, should the circumstances
affecting the exemption change or the beneficial owner cease to be the beneficial owner, both in the form prescribed by the Commissioner for the
South African Revenue Service. Shareholders are advised to contact their CSDP, broker or the company, as the case may be, to arrange for the
abovementioned documents to be submitted prior to payment of the dividend, if such documents have not already been submitted. Dividends received
by non-resident shareholders will not be taxable as income and instead will be treated as dividends which are exempt from income tax in terms of
the general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. From 22 February 2017, any dividend received by a non-resident from
a REIT is subject to dividends withholding tax at 20%, unless the rate is reduced in terms of any applicable agreement for the avoidance of double
taxation ("DTA") between South Africa and the country of residence of the shareholders. Assuming dividend withholding tax will be withheld at
a rate of 20%, the net dividend amount due to non- resident shareholders is 38,84900 cents per share. A reduced dividend withholding rate in terms
of the applicable DTA, may only be relied on if the non- resident shareholders have provided the following forms to their CSDP or broker, as
the case may be, in respect of uncertificated shareholders, or the company, in respect of certificated shareholders:
a) a declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
b) a written undertaking to inform their CSDP, broker or the company, as the case may be, should the circumstances affecting the reduced rate change
or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service.
Non-resident shareholders are advised to contact their CSDP, broker or the company, as the case may be, to arrangefor the abovementioned documents
to be submitted prior to payment of the dividend if such documents have not already been submitted, if applicable.
Shares in issue at the date of declaration of this dividend: 341 085 402.
Indluplace's income tax reference number: 9390/649/177
Dividend declaration after reporting date
In line with IAS 10 Events after the Reporting Period, the declaration of the dividend occurred after the end of the reporting
period, resulting in a non-adjusting event which is not recognised in the financial statements.
Dividends
As published on SENS on 22 January 2018, the board of directors has resolved to change the frequency of dividend declarations and payments from
quarterly for the three months ended 30 September, 31 December, 31 March and 30 June of each year, to bi-annual dividends for the six
months ended 31 March and 30 Septemberof each year, with immediate effect.
Litigation statement
There are no legal or arbitration proceedings, including any proceedings that are pending or threatened, of which Indluplace is aware, that may have
or have had in the recent past, being the previous 12 months, a material effect on the group's financial position.
Basis of preparation
The unaudited interim group financial statements for the six months ended 31 March 2018 have not been reviewed or reported on by the company's
independent auditors, Grant Thornton. The financial statements have been prepared in accordance with the requirements of International Financial
Reporting Standards, the SAICA Financial Reporting Guides as issued by the Financial Practices Committee and the Financial Reporting pronouncement
as issued by the Financial Reporting Standard Council, IAS 34: Interim Financial Reporting, the JSE Listings Requirements and the requirements of the
South African Companies Act, 2008. The accounting policies are consistent with those of the audited results for the year ended 30 September 2017.
These results have been prepared under the supervision of Terry Kaplan CA (SA), Indluplace's Financial Director.
Condensed consolidated statement of comprehensive income
UNAUDITED UNAUDITED AUDITED
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED 12 MONTHS ENDED
R 31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
PROPERTY PORTFOLIO REVENUE
Contractual rental income 282 552 683 156 784 816 330 048 127
Recoveries 52 167 572 38 207 087 79 328 680
Straight line rental income accrual - - 513 434
Total revenue 334 720 255 194 991 903 409 890 241
Operating costs (129 792 454) (74 681 181) (153 281 298)
Administration costs (7 399 896) (5 884 525) (13 409 923)
Net operating profit 197 527 905 114 426 197 243 199 020
Changes in fair values (10 826 641) (18 103) 35 723 690
Profit from operations 186 701 264 114 408 094 278 922 710
Net finance (charges)/income (43 300 246) 3 024 917 5 384 045
Finance charges (57 906 186) (8 332 679) (26 006 997)
Finance income 14 605 940 11 357 596 31 391 042
Profit before taxation 143 401 018 117 433 011 284 306 755
Taxation - - -
Total comprehensive income for the period 143 401 018 117 433 011 284 306 755
RECONCILIATION OF EARNINGS TO HEADLINE EARNINGS
Profit for the year attributable to shareholders 143 401 018 117 433 011 284 306 755
Change in fair value of properties - - (36 881 197)
Deferred tax thereon - - -
Headline earnings attributable to shareholders 143 401 018 117 433 011 247 425 558
Number of shares in issue at period-end 318 645 117 * 241 945 767 289 209 449
Number of shares in issue used for the calculation of distribution per share (last quarter) 318 645 117 * 241 945 767 317 932 853
Weighted average number of shares in issue used for the calculation of earnings and headline
earnings per share 317 307 598 * 240 612 882 253 384 729
Basic and diluted earnings per share (cents) 45,19 48,81 112,20
Headline earnings per share (cents) 45,19 48,81 97,65
Dividends per share (cents) 48,56 48,54 97,75
* Per IFRS 2, 22 440 285 shares have been excluded from the above number of shares in issue at 31 March 2018. See note under investment properties
above.
Condensed consolidated statement of financial position
AS AT 31 MARCH 2018
UNAUDITED UNAUDITED AUDITED
FOR THE SIX FOR THE SIX FOR THE
MONTHS ENDED MONTHS ENDED 12 MONTHS ENDED
R 31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
ASSETS
Non-current assets 4 615 932 614 2 614 194 018 3 137 624 685
Investment property 4 406 592 316 2 422 356 232 2 945 718 828
Fair value of investment property 4 403 342 002 2 419 619 352 2 942 468 514
Straight line rental income accrual 3 250 314 2 736 880 3 250 314
Computer software 177 334 133 158 201 229
Loans to participants of Indluplace share purchase and option scheme 209 162 964 191 704 628 191 704 628
Current assets 138 077 238 74 761 514 109 686 991
Trade and other receivables 133 678 368 55 607 325 68 738 896
Cash and cash equivalents 4 398 870 19 154 189 40 948 095
Total assets 4 754 009 852 2 688 955 532 3 247 311 676
EQUITY AND LIABILITIES
Shareholders' interest 3 342 441 976 2 478 310 813 2 978 791 568
Stated capital 3 033 288 346 2 290 271 465 2 755 180 753
Reserves 309 153 630 188 039 348 223 610 815
Non-current liabilities 1 310 387 193 160 967 536 203 211 727
Secured financial liabilities 1 295 948 003 158 494 392 199 599 178
Derivative instruments 14 439 190 2 473 144 3 612 549
Current liabilities 101 180 683 49 677 183 65 308 381
Trade and other payables 101 180 683 49 677 183 65 308 381
Total equity and liabilities 4 754 009 852 2 688 955 532 3 247 311 676
Number of shares in issue for the period ended 318 645 117 241 945 767 289 209 449
Net asset value per ordinary share (cents) 1 048,95 1 024,32 1 029,98
* Per IFRS 2, 22 440 285 shares have been excluded from the above number of shares in issue at 31 March 2018. See note under investment properties
above.
Condensed consolidated statement of changes in equity
R STATED CAPITAL RESERVES TOTAL
Balance at 30 September 2016 2 274 536 709 184 353 830 2 458 890 539
Issue of shares 15 734 756 - 15 734 756
Total comprehensive income for the 6 months - 117 433 011 117 433 011
Dividends - (113 747 493) (113 747 493)
Balance at 31 March 2017 2 290 271 465 188 039 348 2 478 310 813
Issue of shares 464 909 288 - 464 909 288
Total comprehensive income for the 6 months - 166 873 744 166 873 744
Dividends - (131 302 277) (131 302 277)
Balance at 30 September 2017 2 755 180 753 223 610 815 2 978 791 568
Issue of shares 286 833 433 - 286 833 433
Share buyback (8 725 840) - (8 725 840)
Total comprehensive income for the 6 months - 143 401 018 143 401 018
Share based payments - 19 971 854 19 971 854
Dividends - (77 830 057) (77 830 057)
Balance at 31 March 2018 3 033 288 346 309 153 630 3 342 441 976
Consolidated statements of cash flow
FOR SIX FOR SIX FOR 12
MONTHS ENDED MONTHS ENDED MONTHS ENDED
R 31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
Net cash generated/(utilised) from operating activities 47 375 165 (6 448 082) (4 383 862)
Cash generated from operations 168 505 468 104 274 494 235 281 863
Dividends paid (77 830 057) (113 747 493) (245 049 770)
Finance charges paid (57 906 186) (8 332 679) (26 006 997)
Finance income received 14 605 940 11 357 596 31 391 042
Net cash utilised in investing activities (1 301 661 591) (30 632 982) (516 705 648)
Net acquisition and additions to investment property (1 301 640 750) (30 594 232) (516 562 197)
Net acquisition of computer software (20 841) (38 750) (143 451)
Net cash generated from financing activities 1 217 737 201 9 968 490 515 770 842
Proceeds from share issue 130 114 216 (69 307) 464 733 045
Proceeds from secured financial liabilities 1 239 348 825 9 000 000 50 000 000
Share buyback (8 725 840) - -
Repayment of secured financial liabilities (143 000 000) - -
Loan from shareholder - 1 037 797 1 037 797
Net movement in cash and cash equivalents (36 549 225) (27 112 574) (5 318 668)
Cash and cash equivalents at the beginning of the period 40 948 095 46 266 763 46 266 763
Cash and cash equivalents at the end of the period 4 398 870 19 154 189 40 948 095
Condensed consolidated segmental analysis
The entity has increased to four reportable segments based on the geographic split of the country which are the entity's strategic business segments.
For each strategic business segment, the entity's executive directors review internal management reports on a monthly basis. All segments are located
in South Africa. There are no single major tenants. The following summary describes the operations in each of the entity's reportable segments.
UNAUDITED FOR THE SIX
MONTHS ENDED
UNAUDITED FOR THE SIX MONTHS ENDED 31 MARCH 2018 31 MARCH 2017
R GAUTENG MPUMALANGA KWA-ZULU NATAL FREE STATE TOTAL GAUTENG MPUMALANGA TOTAL
PROPERTY PORTFOLIO REVENUE
Rental income and recoveries 309 511 233 20 462 512 3 170 151 1 576 359 334 720 255 172 643 434 22 348 469 194 991 903
Straight line rental income accrual - - - - - - - -
Total revenue 309 511 233 20 462 512 3 170 151 1 576 359 334 720 255 172 643 434 22 348 469 194 991 903
Operating costs (123 942 850) (3 980 660) (1 434 726) (434 218) (129 792 454) (67 944 086) (6 737 095) (74 681 181)
Administration costs (7 399 896) (5 884 525)
Net operating profit 197 527 905 114 426 197
Changes in fair values (10 826 641) (18 103)
Profit from operations 186 701 264 114 408 094
Net finance (charges)/income (43 300 246) 3 024 917
Finance charges (57 906 186) (8 332 679)
Finance income 14 605 940 11 357 596
Profit before taxation 143 401 018 117 433 011
Taxation - -
Total comprehensive income for the period 143 401 018 117 433 011
Reportable segment assets 4 143 982 806 328 075 660 44 405 468 25 158 554 4 541 622 488 2 155 906 529 318 220 890 2 474 127 419
Corporate segment assets 212 387 364 214 828 113
Reportable segment liabilities (90 115 581) (8 494 907) (1 269 498) (1 300 697) (101 180 683) (46 111 107) (4 599 960) (50 711 067)
Corporate segment liabilities (1 310 387 193) (159 933 652)
3 342 441 976 2 478 310 813
R/AUDITED - 30 SEPTEMBER 2017 GAUTENG MPUMALANGA FREE STATE TOTAL
PROPERTY PORTFOLIO REVENUE
Rental income and recoveries 363 098 186 45 495 171 783 450 409 376 807
Straight line rental income accrual 513 434 - - 513 434
Total revenue 363 611 620 45 495 171 783 450 409 890 241
Operating costs (139 820 967) (13 262 190) (198 141) (153 281 298)
Administration costs (13 409 923)
Net operating profit 243 199 020
Changes in fair values 35 723 690
Profit from operations 278 922 710
Net finance income/(charges) 5 384 045
Finance charges 31 391 042
Finance income (26 006 997)
Profit before taxation 284 306 755
Taxation -
Total comprehensive income for the year 284 306 755
Reportable segment assets 2 851 959 169 325 902 763 23 338 558 3 201 200 490
Corporate segment assets 46 111 186
Reportable segment liabilities (16 988 203) (8 622 615) (23 338 558) (48 949 376)
Corporate segment liabilities (219 570 732)
2 978 791 568
UNAUDITED FOR UNAUDITED FOR
THE SIX THE SIX AUDITED FOR THE
MONTHS ENDED MONTHS ENDED 12 MONTHS ENDED
R 31 MARCH 2018 31 MARCH 2017 30 SEPTEMBER 2017
RECONCILIATION OF COMPREHENSIVE INCOME TO DISTRIBUTABLE EARNINGS
Total comprehensive income for the period 143 401 018 117 433 011 284 306 755
Change in fair value of derivative instruments 10 826 641 18 103 1 157 508
Change in fair value of properties (36 881 197)
Straight line rental income accrual - - (513 434)
Antecedent dividends 510 393 - 18 717 215
Amount avaliable for distribution 154 738 052 117 451 114 266 786 847
RECONCILIATION OF AMOUNT AVAILABLE FOR DISTRIBUTION FOR THE SIX MONTHS/
PER QUARTER
Amounts available for distribution to shareholders 154 738 052 117 451 114 266 786 847
3 months ended 31 December - (57 654 491) (57 654 491)
3 months ended 31 March - - (59 796 630)
3 months ended 30 June - - (71 505 648)
Amount available for distribution for the six months/year ended: 154 738 052 59 796 623 77 830 078
Dividend per share (cents) 48,56 48,54 97,55
By order of the Board
9 May 2018
Directors
T Adler (Chairperson)*, C Abrams*^, C de Wit (CEO), M Kaplan,
T Kaplan (FD), G Kinross*^ (Lead independent director), S Noik*,
A Rehman*^, Y Silimela* , I Suleman.
*Non-executive, ^ Independent. All directors are South African.
Registered office
3rd Floor, 1 Sturdee Avenue, Rosebank, Johannesburg, 2196
PO Box 685, Melrose Arch, 2076.
Transfer secretaries
Computershare Investor Services Proprietary Limited
Sponsor
Java Capital
Company secretary
CIS Company Secretaries Proprietary Limited
Website
www.indluplace.co.za
Date: 09/05/2018 07:07:00 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
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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,
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