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Condensed unaudited consolidated interim financial statements for the three and nine months ended 30 June 2018
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 interim financial statements
for the three and nine months ended 30 June 2018
Directors' commentary
Nature of the business
Greenbay is a Category One Global Business Licence company registered in
Mauritius. The company has primary listings on both the Official Market of the
Stock Exchange of Mauritius Ltd ("SEM") and the Main Board of the Johannesburg
Stock Exchange Limited ("JSE"). Greenbay invests globally in direct property,
and in listed real estate and infrastructure securities.
Commentary
The company generated solid results for the quarter ended June 2018. The net
asset value per share increased from 8,82 EUR cents at March 2018 to
9,41 EUR cents at June 2018, an increase of 6,7%. In absolute terms the
net asset value increased by EUR55,2 million, after paying a cash dividend
of EUR27,4 million during the period. The most significant contributor to the
increase in net asset value was the company's investments in infrastructure-
focused equities.
A substantial toll road and bridge project was identified for acquisition at
the beginning of the year, however failed the due diligence process. Greenbay
was out-bid on two other direct infrastructure projects. With the current
global market uncertainties, the bidding process for participation in an
international airport transaction has been postponed by the seller.
Greenbay has successfully acquired the remaining share in its two retail
assets in Portugal following shareholder approval of the acquisition on
2 August 2018. The major asset, Forum Coimbra, continues to perform well.
Greenbay is also considering other jurisdictions for direct retail property
investments that offer better growth and value opportunities than currently
available in Iberia. Based on feedback from investors, the board confirms
that direct and indirect property holdings will constitute the majority
of the investments of the company.
Greenbay continues to trade below its net asset value per share and the
board has accordingly decided to replace the existing share repurchase
programme with a pro rata share repurchase offer whereby the company
repurchases up to 30% of its shares in issue. A circular to shareholders
in this regard, together with a notice of general meeting, is in the process
of being prepared and will be published in due course, following the
required regulatory approvals. Shareholders should note that the current
repurchase programme will remain in place until shareholder approval of
the proposed pro rata share repurchase offer is obtained.
Summary of financial performance
Net asset
Dividend value per Loan-to
per share Shares in share value
EUR cents issue EUR cents ratio*
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%
Mar 2018 0,2885 9 488 106 526 8,82 31,3%
Jun 2018 - 9 486 106 526 9,41 35,1%
* The loan-to-value ratio is calculated by dividing total interest-bearing
borrowings, adjusted for cash, by the total of investments in property, listed
securities and loans advanced. The ratio is based on the management accounts.
Outlook
The delay in the completion of the Portuguese acquisition due to unforeseen
circumstances, and the board's decision to reduce the current leverage through
sales in the listed portfolio, will result in a reduction in the forecast
distribution growth for the 2018 financial year to between 15% and 20%. The
2019 financial year distribution forecast will be updated in November 2018
with the release of the annual results, when there will be greater certainty
on new direct acquisitions.
The revised distribution forecast is based on the following assumptions:
- That a stable global macro-economic environment will prevail;
- That there will be no failures of listed real estate or infrastructure
securities or of investment counterparties;
- That there will be no material changes in the regulatory or taxation
environment; and
- That no further direct property and infrastructure investments will be made.
This forecast statement and the assumptions underlying such statement are the
responsibility of the board and have not been reviewed or reported on by
the company's external auditors.
By order of the board
Intercontinental Trust Ltd
Company secretary
Mauritius - 8 August 2018
Consolidated statement of comprehensive income
Unaudited Unaudited Unaudited Unaudited
for the for the for the for the
nine months nine months three months three months
ended ended ended ended
Jun 2018 Jun 2017 Jun 2018 Jun 2017
EUR EUR EUR EUR
Net rental and
related revenue 2 594 278 3 358 619 981 011 1 044 224
Recoveries and
contractual rental
revenue 4 406 720 4 515 653 1 447 275 1 519 261
Straight-lining of
rental revenue
adjustment (69) 1 122 (115) 4
Rental revenue 4 406 651 4 516 775 1 447 160 1 519 265
Property operating
expenses (1 812 373) (1 158 156) (466 149) (475 041)
Income from equity
derivatives 30 795 191 18 847 017 10 415 817 7 819 551
Income from
investments 13 335 808 148 425 7 916 837 111 845
Total revenue 46 725 277 22 354 061 19 313 665 8 975 620
Fair value
(loss)/gain on
investment property,
investments and
derivatives (21 768 629) (2 099 709) 49 343 133 (1 130 257)
Fair value
(loss)/gain on
investments (1 631 326) 808 736 24 619 499 502 059
Fair value
(loss)/gain
on equity derivatives (19 118 686) (2 907 323) 30 361 862 (1 632 312)
Adjustment resulting
from straight-lining
of rental revenue 69 (1 122) 115 (4)
Profit on sale of
investment property
under development 2 223 157 - 1 794 -
Impairment of
Greenbay share
incentive loans (681 495) - 29 212 -
Fair value loss on
currency derivatives (2 560 348) - (5 669 349) -
Administrative
expenses (3 844 388) (1 438 834) (2 402 410) (667 313)
Foreign exchange
gain/(loss) 5 279 336 (15 272 249) 15 417 775 (9 805 074)
Income from joint
venture 6 620 821 577 240 4 368 091 577 240
Operating
profit/(loss) 33 012 417 4 120 509 86 040 254 (2 049 784)
Net finance costs (9 442 707) (1 985 160) (3 255 391) (2 846 042)
Finance income 429 718 2 841 639 102 940 1 714 028
Interest on share
incentive loans 50 437 54 150 8 241 12 896
Interest received 379 281 2 787 489 94 699 1 701 132
Finance costs (9 872 425) (4 826 799) (3 358 331) (4 560 070)
Interest on
borrowings (9 479 256) (4 826 799) (2 970 178) (4 560 070)
Fair value
adjustment on
interest rate
derivatives (393 169) - (388 153) -
Other income 135 074 - 135 074 -
Profit/(loss)
before income tax 23 704 784 2 135 349 82 919 937 (4 895 826)
Income tax (1 031 352) (795 583) (187 413) (289 875)
Profit/(loss) for
the period
attributable
to equity holders
of the company 22 673 432 1 339 766 82 732 524 (5 185 701)
Other comprehensive
income net of tax:
Items that may
subsequently be
reclassified to
profit or loss:
Exchange differences
on translation of
foreign operations
- subsidiaries (796) - (1 783) -
(796) - (1 783) -
Total comprehensive
income/(loss) for
the period
attributable to
equity holders of
the company 22 672 636 1 339 766 82 730 741 (5 185 701)
Basic earnings/
(loss) per share
(EUR cents) 0,24 0,02 0,87 (0,09)
Consolidated statement of financial position
Unaudited Audited Unaudited
Jun 2018 Sep 2017 Jun 2017
EUR EUR EUR
Assets
Non-current assets 688 316 934 290 757 701 146 152 731
Investment property 57 916 707 57 498 838 56 732 861
Straight-lining of
rental revenue adjustment 1 093 1 162 1 122
Investment property
under development - 13 942 548 13 818 470
Investment in and loans
to joint venture 66 575 211 59 361 010 58 075 964
Greenbay share
incentive loans 3 542 490 505 679 1 003 767
Investments 556 524 869 159 448 464 16 520 547
Other non-current assets 3 756 564 - -
Current assets 239 866 241 644 871 133 505 319 827
Trade and other receivables 24 763 900 4 457 081 4 024 002
Equity derivative cash margin 67 424 674 233 825 666 207 784 201
Cash and cash equivalents 147 677 667 406 588 386 293 511 624
Total assets 928 183 175 935 628 834 651 472 558
Equity and liabilities
Total equity attributable
to equity holders 892 252 572 893 778 890 615 045 251
Stated capital 917 719 017 892 382 767 605 264 538
Treasury shares (161 680) - -
Non-distributable reserve (54 499 482) (36 075 289) 1 662 737
Currency translation reserve (11 029 575) (11 028 779) (11 028 765)
Retained earnings 40 224 292 48 500 191 19 146 741
Total liabilities 35 930 603 41 849 944 36 427 307
Non-current liabilities 24 118 705 25 144 714 25 500 069
Interest-bearing borrowings 23 714 094 24 714 857 25 500 069
Deferred tax 404 611 429 857 -
Current liabilities 11 811 898 16 705 230 10 927 238
Interest-bearing borrowings 1 428 598 1 374 996 1 374 996
Trade and other payables 9 940 724 14 670 411 9 050 537
Income tax payable 442 576 659 823 501 705
Total equity and liabilities 928 183 175 935 628 834 651 472 558
Total number of shares
in issue 9 486 106 526 9 322 176 525 7 037 912 566
Net asset value per share
(EUR cents) 9,41 9,59 8,74
Consolidated statement of cash flows
Unaudited Unaudited
for the for the
nine months nine months
ended ended
Jun 2018 Jun 2017
EUR EUR
Operating activities
Cash generated by operations 19 028 074 16 541 302
Income tax paid (1 462 505) (425 855)
Dividends paid (29 712 600) (687 939)
Cash (outflow)/inflow from
operating activities (12 147 031) 15 427 508
Investing activities
Share incentive loans (advanced)/repaid (5 111 551) 1 599 870
Acquisition of listed security investments (398 707 731) (12 616 167)
Improvement of investment property (417 800) (499 024)
Proceeds from sale of investment property
under development 16 165 705 -
Investment in joint venture (1 373 232) (38 483 224)
Loan to joint venture (67 099) (19 042 175)
Decrease/(increase) in equity
derivative position 147 281 510 (124 464 686)
Cash outflow from investing activities (242 230 198) (193 505 406)
Financing activities
(Decrease)/increase in interest-bearing
borrowings (947 161) 26 875 065
Interest received 379 281 2 787 489
Interest paid (9 479 256) (4 826 799)
Purchase of treasury shares (161 680) -
Proceeds from share issuances 5 675 326 230 456 921
Cash (outflow)/inflow from
financing activities (4 533 490) 255 292 676
(Decrease)/increase in cash and
cash equivalents (258 910 719) 77 214 778
Cash and cash equivalents at
beginning of the period 406 588 386 216 296 846
Cash and cash equivalents at end
of the period 147 677 667 293 511 624
Cash and cash equivalents consist of:
Current accounts 147 677 667 293 511 624
Consolidated statement of changes in equity
Non-
Stated Treasury distributable
capital shares reserve
EUR EUR EUR
Restated1 at Sep 2016 364 806 890 - 19 034 695
Translation of historical
equity on change of
presentation currency
Issue of shares: 220 726 841
- 1 324 503 311 shares
on 27 Mar 2017 144 979 034
- 620 000 000 shares
on 12 Jun 2017 75 747 807
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
on 14 Jun 2017 14 142 249
- cash
Transfer to non-
distributable reserve (17 371 958)
Balance at Jun 2017 605 264 538 - 1 662 737
Issue of shares:
2 284 263 959 shares
on 22 Aug 2017 287 118 229
Exchange differences on
translation of foreign
operations
Loss for the period
Transfer to non-
distributable reserve (37 738 026)
Balance at Sep 2017 892 382 767 - (36 075 289)
Issue of shares:
36 414 535 shares
on 14 Dec 2017 5 675 326
Share repurchase
- 2 000 000 shares (161 680)
Dividend paid - final 2017 19 660 924
- scrip issue
- 129 515 466 shares
on 20 Dec 2017 19 660 924
- cash
Dividend paid
- interim 2018: cash
Exchange differences on
translation of foreign
operations
Profit for the period
Transfer to non-
distributable reserve (18 424 193)
Balance at Jun 2018 917 719 017 (161 680) (54 499 482)
Currency
translation Retained Total
reserve earnings equity
EUR EUR EUR
Restated1 at Sep 2016 (20 758 845) 20 853 763 383 936 503
Translation of historical
equity on change of
presentation currency 9 730 080 9 730 080
Issue of shares: 220 726 841
- 1 324 503 311 shares
on 27 Mar 2017 144 979 034
- 620 000 000 shares
on 12 Jun 2017 75 747 807
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
on 14 Jun 2017 (14 142 249) -
- cash (403 457) (403 457)
Transfer to non-
distributable reserve 17 371 958 -
Balance at Jun 2017 (11 028 765) 19 146 741 615 045 251
Issue of shares:
2 284 263 959 shares
on 22 Aug 2017 287 118 229
Exchange differences on
translation of foreign
operations (14) (14)
Loss for the period (8 384 576) (8 384 576)
Transfer to non-
distributable reserve 37 738 026 -
Balance at Sep 2017 (11 028 779) 48 500 191 893 778 890
Issue of shares:
36 414 535 shares
on 14 Dec 2017 5 675 326
Share repurchase -
2 000 000 shares (161 680)
Dividend paid - final 2017 (22 000 337) (2 339 413)
- scrip issue
- 129 515 466 shares
on 20 Dec 2017 (19 660 924) -
- cash (2 339 413) (2 339 413)
Dividend paid
- interim 2018: cash (27 373 187) (27 373 187)
Exchange differences on
translation of foreign
operations (796) (796)
Profit for the period 22 673 432 22 673 432
Transfer to non-
distributable reserve 18 424 193 -
Balance at Jun 2018 (11 029 575) 40 224 292 892 252 572
1 The restated figures are based on the audited consolidated financial
statements for the year ended September 2016 and were translated from GBP
to EUR.
Notes
1. Preparation and accounting policies
The condensed unaudited consolidated interim financial statements for the three
and nine months ended 30 June 2018 ("interim financial statements") 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 interim financial
statements are consistent with those applied in the preparation of the audited
consolidated financial statements for the year ended 30 September 2017.
All amendments to standards that are applicable to Greenbay for its financial
year beginning 1 October 2017 have been considered. Based on management's
assessment, the amendments do not have a material impact on the group's
condensed unaudited consolidated interim financial statements.
The group's investment property is valued internally by management at interim
reporting periods and externally by an independent valuer for year-end
reporting. In terms of IAS 40: Investment Property and IFRS 7: Financial
Instruments: Disclosure, investment property is valued at fair value and
is categorised as a level 3 investment, as one or more of the significant
inputs is not based on observable market data.
In terms of IFRS 7: Financial Instruments: Disclosures, IAS 39: Financial
Instruments: Recognition and measurement and IFRS 13: Fair Value Measurement,
the group's currency and interest rate derivatives, as well as the equity
derivatives are measured at fair value through profit or loss. The currency
and interest rate derivatives are categorised as level 2 investments, while
the equity derivatives are categorised as level 1 investments. In terms of
IFRS 13, investments are measured at fair value, based on directly observable
quoted closing prices at the reporting date, and are therefore categorised as
level 1 investments.
The company is required to publish financial results for the three and nine
months ended 30 June 2018 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.
These interim financial statements were approved by the board of Greenbay
on 7 August 2018.
These interim financial statements have not been audited, reviewed or
reported on by the company's external auditor.
This communique is issued pursuant to SEM Listing Rule 12.19 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 2018, other than those discussed in the directors' commentary and
in note 2 below, that require any additional disclosure or adjustment to the
financial statements.
Copies of the interim 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. Subsequent events and other disclosures
At the 2 August 2018 general meeting shareholders authorised:
- the acquisition from Resilient REIT Limited of the 50% of the shares and
claims in LocaViseu-Sociedade de Gestao de Imoveis, S.A. that it does not yet
own;
- the transfer of EUR 400 million of stated capital to non-distributable
reserve; and
- changes to the company's constitution.
Refer to the circular relating to these items for details of the pro forma
financial effects.
Greenbay has converted a substantial component of its overall listed equity
exposure from equity swap derivatives to directly-held equity investments.
Combined with fair value adjustments for market movements it resulted in the
majority of the changes in:
- Investments, Trade and other receivables, and Equity derivative cash margin,
compared to June and September 2017, respectively; and
- Income from equity derivatives, Income from investments, Fair value
(loss)/gain on investments, Fair value (loss)/gain on equity derivatives,
and Interest on borrowings, compared to the prior periods.
In March 2018, Greenbay disposed of its investment property under development,
being the Tivoli land investment in Ljubljana, Slovenia.
Cash and cash equivalents have decreased mainly as a result of the group
reducing its investments in equity derivative swaps in favour of directly-held
equity securities (as noted above), cash dividends paid in June 2018, offset
by the subsequent release of equity derivative margin cash and the disposal
of the Tivoli land.
The changes in Foreign exchange gain/(loss), partially offset by the Fair
value loss on currency derivatives, compared to the prior periods, resulted
primarily from the impact of foreign currency fluctuations on the net
investment in foreign exchange holdings.
The group's weighted average income tax rate is not expected to change
significantly to that which was disclosed at 30 September 2017.
3. Fair value measurement
The fair value of the level 2 instruments, being the currency and interest
rate derivatives, is determined using valuation techniques that maximise
the use of observable market data (for example observable yield curves
and forward exchange rates) where it is available and rely as little as
possible on entity-specific estimates.
There were no transfers between levels 1, 2 and 3 during the period.
The valuation methods applied are consistent with those applied in preparing
the previous consolidated financial statements. Quarterly discussions of
valuation processes and results are held between the CFO and management where
any changes in level 2 and 3 fair values are analysed for period-end reporting.
Level 1 Level 2 Level 3
Fair value hierarchy EUR EUR EUR
Jun 2018
Assets
Investment property 57 916 707
Investments 556 524 869
Interest rate derivatives
receivable 140 038
Currency derivatives
receivable 78 883
556 524 869 218 921 57 916 707
Liabilities
Interest rate derivatives
payable 265 770
Currency derivatives
payable 2 335 563
- 2 601 333 -
Jun 2017
Assets
Investment property 56 732 861
Investment property under
development 13 818 470
Investments 16 520 547
Currency derivatives
receivable 1 104 115
16 520 547 1 104 115 70 551 331
Greenbay uses equity swap derivatives to obtain exposure to listed real
estate and infrastructure securities. In addition to cash, Greenbay
utilises its directly-held listed equity investments as collateral for the
group's equity derivative exposure.
Below is a summary of the amounts directly related to the equity swap
derivatives:
Jun 2018 Jun 2017
EUR EUR
Gross exposure to listed investments 623 546 291 589 744 886
Interest bearing borrowings (623 546 291) (589 744 886)
Net exposure to listed investments - -
Equity derivative collateral 330 270 261 207 784 201
- cash 67 424 674 207 784 201
- directly-held listed equity investments
(Investments) 262 845 587 -
4. Segmental analysis
Unaudited Audited Unaudited
Jun 2018 Sep 2017 Jun 2017
Total assets EUR EUR EUR
Geographical
Australia 45 548 709 1 781 607 980 317
Canada 77 080 688 1 344 166 1 790 593
Europe 410 324 698 797 174 578 460 945 642
Hong Kong 34 050 355 9 656 029 2 240 031
Singapore 16 126 442 1 466 401 1 175 207
UK 58 278 834 4 738 221 63 268 843
USA 266 299 923 110 977 339 112 484 203
Corporate 20 473 526 8 490 493 8 587 722
928 183 175 935 628 834 651 472 558
Sectoral
Listed investments 626 354 766 393 274 130 224 304 748
Direct investments 143 694 627 135 381 550 133 408 203
Corporate 158 133 782 406 973 154 293 759 607
928 183 175 935 628 834 651 472 558
Unaudited Audited Unaudited
Jun 2018 Sep 2017 Jun 2017
Total liabilities EUR EUR EUR
Geographical
Australia 52 574 395 007 1 223 180
Canada 78 461 122 212 885 384
Europe 31 262 605 28 236 432 31 192 282
Hong Kong - - 36 243
Singapore 187 256 463 770 110 775
UK 1 443 651 146 202 22 089
USA 2 474 471 11 415 370 2 208 814
Corporate 431 585 1 070 951 748 540
35 930 603 41 849 944 36 427 307
Sectoral
Listed investments 5 707 441 5 993 050 591 192
Direct investments 26 913 341 27 157 820 27 528 959
Corporate 3 309 821 8 699 074 8 307 156
35 930 603 41 849 944 36 427 307
Unaudited Unaudited
for the for the
nine months nine months
ended ended
Jun 2018 Jun 2017
Revenue EUR EUR
Geographical
Australia 3 887 514 615 831
Canada 4 430 461 1 306 627
Europe 12 711 281 6 959 949
Hong Kong 798 819 42 818
Singapore 345 658 500 424
UK 1 627 456 1 039 638
USA 22 924 088 11 888 774
Corporate - -
46 725 277 22 354 061
Sectoral
Listed investments 44 130 999 18 995 442
Direct investments 2 594 278 3 358 619
Corporate - -
46 725 277 22 354 061
Unaudited Unaudited
for the for the
nine months nine months
ended ended
Jun 2018 Jun 2017
Profit for the period EUR EUR
Geographical
Australia 6 290 206 2 054 160
Canada (2 724 861) 330 540
Europe 7 918 992 7 439 281
Hong Kong 144 102 3 896
Singapore (525 285) 124 327
UK 827 475 902 980
USA 7 924 640 5 664 996
Corporate 2 818 163 (15 180 414)
22 673 432 1 339 766
Sectoral
Listed investments 13 170 017 12 786 341
Direct investments 9 737 424 3 166 547
Corporate (234 009) (14 613 122)
22 673 432 1 339 766
After reassessing the group's segmental reporting during the quarter,
management has added further details to the report to enhance the disclosure.
5. Headline earnings
Unaudited Unaudited
for the for the
nine months nine months
ended ended
Reconciliation of profit for the Jun 2018 Jun 2017
period to headline earnings EUR EUR
Basic earnings – profit for the
period attributable to equity holders 22 673 432 1 339 766
Adjusted for:
- Impairment of Greenbay share incentive
loans 681 495 -
- Profit on sale of investment property
under development (2 223 157) -
- Fair value gain on investment property –
included in income from joint venture (4 635 000) -
- Income tax effect 1 604 325 -
Headline earnings 18 101 095 1 339 766
Weighted average shares in issue 9 440 143 475 5 480 133 586
Headline earnings per share (EUR cents) 0,19 0,02
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 interim financial statements for the three and nine
months ended 30 June 2018, 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.
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 June 2018 and raising the corresponding equity swap liability. 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 nine months
ended June 2018 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
Adjust-
ment 2
Proportionate
Adjust- consoli-
ment 1 dation of
Equity investment
derivatives in joint Management
IFRS gross-up venture accounts
Jun 2018 Jun 2018 Jun 2018 Jun 2018
EUR EUR EUR EUR
Assets
Non-current assets 688 316 934 623 546 291 62 039 116 1 373 902 341
Investment
property 57 916 707 117 668 826 175 585 533
Straight-lining
of rental revenue
adjustment 1 093 (218 326) (217 233)
Investment in
and loans to
joint venture 66 575 211 (66 575 211) -
Greenbay share
incentive loans 3 542 490 3 542 490
Investments 556 524 869 623 546 291 1 180 071 160
Other non-
current assets 3 756 564 3 756 564
Goodwill – 11 163 827 11 163 827
Current assets 239 866 241 - 7 087 692 246 953 933
Trade and other
receivables 24 763 900 1 279 948 26 043 848
Equity derivative
cash margin 67 424 674 (67 424 674) -
Cash and cash
equivalents 147 677 667 67 424 674 5 807 744 220 910 085
Total assets 928 183 175 623 546 291 69 126 808 1 620 856 274
Equity and
liabilities
Total equity
attributable to
equity holders 892 252 572 - - 892 252 572
Stated capital 917 719 017 917 719 017
Treasury shares (161 680) (161 680)
Non-distributable
reserve (54 499 482) (54 499 482)
Currency
translation
reserve (11 029 575) (11 029 575)
Retained earnings 40 224 292 40 224 292
Total liabilities 35 930 603 623 546 291 69 126 808 728 603 702
Non-current
liabilities 24 118 705 623 546 291 66 222 212 713 887 208
Interest-bearing
borrowings 23 714 094 623 546 291 50 727 461 697 987 846
Deferred tax 404 611 15 494 751 15 899 362
Current liabilities 11 811 898 - 2 904 596 14 716 494
Interest-bearing
borrowings 1 428 598 1 428 598
Trade and other
payables 9 940 724 2 659 249 12 599 973
Income tax payable 442 576 245 347 687 923
Total equity and
liabilities 928 183 175 623 546 291 69 126 808 1 620 856 274
Condensed consolidated statement of comprehensive income
Adjust-
ment 2
Proportionate
Adjust- consoli-
ment 1 dation of
Equity investment
derivatives in joint Management
IFRS gross-up venture accounts
for the for the for the for the
nine months nine months nine months nine months
ended ended ended ended
Jun 2018 Jun 2018 Jun 2018 Jun 2018
EUR EUR EUR EUR
Net rental and
related revenue 2 594 278 - 5 208 271 7 802 549
Recoveries and
contractual
rental revenue 4 406 720 7 226 086 11 632 806
Straight-lining of
rental revenue
adjustment (69) 16 249 16 180
Rental revenue 4 406 651 - 7 242 335 11 648 986
Property operating
expenses (1 812 373) (2 034 064) (3 846 437)
Income from equity
derivatives 30 795 191 30 795 191
Income from
investments 13 335 808 13 335 808
Total revenue 46 725 277 - 5 208 271 51 933 548
Fair value
(loss)/gain on
investment
property,
investments and
derivatives (21 768 629) - 4 618 751 (17 149 878)
Fair value loss
on investments (1 631 326) (1 631 326)
Fair value loss
on equity
derivatives (19 118 686) (19 118 686)
Fair value gain
on investment
property - 4 635 000 4 635 000
Adjustment resulting
from straight-
lining of rental
revenue 69 (16 249) (16 180)
Profit on sale of
investment property
under development 2 223 157 2 223 157
Impairment of
Greenbay share
incentive loans (681 495) (681 495)
Fair value loss
on currency
derivatives (2 560 348) (2 560 348)
Administrative
expenses (3 844 388) (155 676) (4 000 064)
Foreign exchange
gain 5 279 336 5 279 336
Income from
joint venture 6 620 821 (6 620 821) -
Profit before net
finance costs 33 012 417 - 3 050 525 36 062 942
Net finance
costs (9 442 707) - (1 081 999) (10 524 706)
Finance income 429 718 - - 429 718
Interest on
share incentive
loans 50 437 50 437
Interest
received 379 281 379 281
Finance costs (9 872 425) - (1 081 999) (10 954 424)
Interest on
borrowings (9 479 256) 7 650 621 (1 081 999) (2 910 634)
Fair value
adjustment on
interest rate
derivatives (393 169) (393 169)
Interest on equity
derivatives - (7 650 621) (7 650 621)
Other income 135 074 135 074
Profit before
income tax 23 704 784 - 1 968 526 25 673 310
Income tax (1 031 352) (1 968 526) (2 999 878)
Profit for the
period 22 673 432 - - 22 673 432
Directors:
Terry Warren (chairman); Stephen Delport (CEO)*; Kobus van Biljon*;
Jan Wandrag*, Karen Bodenstein; Teddy Lo Seen Chong; Mark Olivier;
Barry Stuhler
*executive director)
There were no changes to the board of directors during the quarter.
Mauritian management company and 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 (Pty) Ltd
JSE sponsor:
Java Capital
SEM authorised representative and sponsor:
Perigeum Capital Ltd
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