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DELTA PROPERTY FUND LIMITED - Unaudited condensed consolidated interim results for the six months ended 31 August 2018

Release Date: 05/11/2018 07:05
Code(s): DLT     PDF:  
Wrap Text
Unaudited condensed consolidated interim results for the six months ended 31 August 2018

Delta Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/005129/06)
Share code: DLT 
ISIN: ZAE000194049
("Delta" or "the Fund" or "the Group")
(REIT status approved)

Unaudited condensed consolidated interim results 
for the six months ended 31 August 2018

Performance
- Interim distribution of 39.40 cents per share
- Loan to value of 43%
- Renewed and concluded 62 035m2 of leases
- Portfolio vacancy at 13.3%

Commentary
Company profile
Delta is a JSE listed Real Estate Investment Trust ("REIT") with a property portfolio of R11.5 billion and a
market capitalisation of R4.4 billion as at 31 August 2018. Delta is the dominant sovereign listed property
fund in South Africa, is black managed and is one of the most empowered funds in the sector. The primary 
focus of the Fund is long-term investment in quality, rental income-generating properties situated in 
strategic nodes that are attractive to sovereign entities and other tenants requiring empowered landlords.

Financial results
Contractual rental income and like-for-like net property income increased by 1.6% and 0.8% respectively,
affected by disposal of non-current assets held for sale and increased vacancies. 

Property operating expenses increased by 23.8% during the period, resulting in net property income decreasing 
8.8%. These were primarily affected by a R30 million once-off provision raised in respect of a gross lettable 
area (GLA) dispute on the Forum building, which is currently under discussion with the National Department of 
Public Works (DPW). The Board acting prudently, has requested management to raise this provision.  

The gross and net cost to income ratio increased to 32% and 17.9% respectively due to the Forum provision
raised and increased vacancies in the portfolio.   

Administrative expenses increased by 1.6%, benefiting from stricter cost management and reduced asset
management fees.

Finance costs increased by 5.7%, primarily due to the conclusion of new facilities and the refinancing of
existing facilities at marginally higher rates, coupled with higher debt restructuring fees.  

Following the resignation of Sandile Nomvete as Chairman of Grit and the subsequent dilution of Delta's
interest to 7.8%, Delta no longer has significant influence over Grit's financial and operating policy 
decisions. Therefore, this interest has been reclassified as an equity investment measured at fair value. 

Taking into account the aforementioned provision the Board has conservatively declared a half-year
distribution of 39.40 cents per share which represents a 15.1% decrease to the prior period.

Property portfolio
Delta's portfolio of R11.5 billion consists of 105 properties with a total GLA of 952 839m2, which includes
assets held for sale comprising 11 properties with a total GLA of 90 131m2 and a combined value of 
R969.4 million.

Acquisition and disposals
During the current period, Delta was focused on renewing leases with the DPW and did not embark on any
acquisitions. 

The long-awaited cession from the Tshwane Council for the sale of Block G was finally received and transfer 
is anticipated to take place before year-end. The transfer of Broadcast House and Top trailers 1 have also 
been delayed due to further renegotiations on their sale agreements but we also anticipate these transfers 
taking place before year-end.

In terms of the disposal programme, relating to non-core and underperforming assets, Delta has to date
concluded transactions amounting to R316 million for seven buildings with a total GLA of 35 403m2. 

Major capital projects
No major capital projects were approved during the current period. The following projects currently in
progress have been prioritised for completion: 
- Embassy Building (Durban) - nearing completion November 2018 at an estimated cost of R28 million and 
  is strategic to securing future leases. 
- Beacon Hill (King Williams Town) - investment of R40 million due to the conclusion of a five-year lease. 
- Commission House (Pretoria) - nearing completion November 2018 at an estimated cost of R12 million with
  negotiations for a 10-year lease extension in progress.
- 17 Harrison Street Building and Kay Street Parkade (Johannesburg) - nearing completion January 2019 at 
  an estimated cost of R4.5 million due to a four-year lease renewal. 
- Poyntons - fire compliance project underway at an approved cost of R32.5 million and is expected to be
  completed by January 2019.

Letting and vacancies
The lease expiry profile of the portfolio at 31 August 2018 was as follows:
                                                                                          Beyond     
                                   February  February  February  February  February  28 February     
                  Vacant  Monthly      2019      2020      2021      2022      2023         2023    
Segment                %        %         %         %         %         %         %            %    
Office sovereign     7.9     39.7      10.2      11.9      18.7       7.7       0.8          3.0    
Office other        26.0      8.5      10.1      18.8      21.3       7.7       3.9          3.7    
Retail               5.1      2.3      10.0      14.2       3.2       8.5         -         56.7    
Industrial          19.0        -      41.9         -      39.1         -         -            -    

Vacancies increased to 13.3% (GLA of 126 330m2) with a weighted average rental of R115.48m2 across the
portfolio. Lease renewals of 52 422m2 and new leases totalling 9 613m2 have been concluded during 
the period. 

Over the last five years, since listing, Delta's occupancy rate has on average been greater than 90.0%.
However, this number has declined mainly due to challenges faced in the Bloemfontein portfolio. The 
vacancy in the Durban CBD is 16.0% and in the Pretoria CBD 6.9%. Both lower than the SAPOA second 
quarter average for B grade office space of 17.9% and 7.7% respectively.

Altogether 59 leases totalling 227 500m2 have been agreed on and concluded with the DPW and Treasury in
stage 1 of the negotiation process. The lease terms proposed range between three and 9 years 11 months. 
DPW has negotiated the terms and rentals with Delta and now will agree these with their various user 
departments, this being stage 2 of the negotiation process. Three user departments, making up 94 334m2, 
have concluded stages 1 and 2 and have progressed to the third and final stage whereby the Bid Adjudication 
Committee is expected to grant its approval. Following these same three stages, DPW has indicated that the 
remaining 133 166m2 is expected to be renewed by 31 December 2018.

Delta as a responsible landlord is mindful of its health and safety obligations and will endeavour to 
ensure that it meets with the highest level of compliance.  

Funding
Loan to value increased to 43.0% (2018: 41.3%), primarily due to new bank facilities concluded. 

The weighted average all-in cost of funding increased to 9.3% (2018: 9.2%) due to higher rates on both new
and existing facilities renewed. Interest rate exposure remains hedged with 81.9% (2018: 85.4%) of borrowings
being fixed through a combination of swap contracts and fixed rate loans for an average period of 1.1 years
(2018: 1.5 years). The average debt facility expiry period is 1.1 years (2018: 1.5 years) with the interest 
cover ratio at 2.2 (2018: 2.4). 

Management remains committed to reduce the weighted average cost of funding and  term out the debt expiry
profile once the bulk lease renewals are concluded. 

Provision of financial assistance
Delta shareholders are referred to special resolution number 4 relating to the provision of direct or
indirect financial assistance in terms of section 45 of the Companies Act, No 71 of 2008 ("the Companies Act") 
to related or inter-related companies, which was approved at the Annual General Meeting of Delta on 
7 August 2018.

Further to the above, Delta shareholders are notified in terms of section 45(5)(a) of the Companies Act,
that the Board of directors of the Company ("the Board") passed a resolution on 31 October 2018 ("the Board
resolution") granting financial assistance to the following related companies:
- Somnipoint Proprietary Limited - R25 million in respect of a loan to a company with common directors.
- Grit Real Estate Income Group Limited - R2.1 million in respect of a guarantee fee charged.
- Hestitrix Proprietary Limited - R248.8 million in the ordinary course of business.
- K2014000273 Proprietary Limited - R147.3 million in the ordinary course of business.
- 277 Vermeulen Street Properties Proprietary Limited - R22.1 million in the ordinary course of business.
- Hendisa Investments Proprietary Limited - R33 614 in the ordinary course of business.

The financial assistance provided, as detailed above, is greater than one-tenth of 1% of Delta's net worth
as at the date of the Board resolution. The Board further confirms that immediately after providing the
financial assistance, the Company continues to satisfy the solvency and liquidity test as contemplated in 
section 4 of the Companies Act and that the terms and conditions of the financial assistance are fair and 
reasonable to the Company.

Changes to directorate during the period
There have been no changes to directorate since the release of the 2018 year-end results.

Prospects
The South African economy remains under severe pressure, exacerbated by uncertainty in the lead up to the
2019 election year. Notwithstanding these pressures, the Board expects the conclusion of long-term leases 
by the end of this calendar year as indicated by DPW. 

Continued low economic growth, lacklustre demand in the Sunninghill node and challenges with the Free State
portfolio have negatively impacted the Group's vacancies. The vacancy levels in excess of budget were
partially countered by continuing income due to the delays in the transfer of disposals, and to a lesser 
extent by negative reversions on lease renewals which were budgeted towards the latter part of the current 
period not materialising. 

The finalisation of long-term leases remains a priority, with the conclusion thereof demanding significant
cash flow requirements in the form of tenant installations, capital expenditure and maintenance. The Board has
acknowledged that the capital structure of the Group needs to be reassessed together with a dedicated focus on
capital expenditure, debt refinancing, and filling of vacancies. 

The Company revises its previous guidance of a negative reversion in distribution of between 2% and 4% down
to a negative reversion in distribution of between 2% and 6%. This guidance has not been reviewed or reported
on by the Company's auditors.

Declaration of interim dividend ("the cash dividend") with the election to reinvest the dividend 
Shareholders are advised that dividend number 12 of 39.39818 cents per share for the six months ended 
31 August 2018 has been declared. The source of the cash dividend is from distributable income. 

Shareholders will be entitled, in respect of all or part of their shareholding, to elect to reinvest the
cash dividend in return for Delta shares ("the dividend reinvestment alternative"), failing which they will
receive the cash dividend of 39.39818 cents per Delta share in respect of all or part of their shareholding. 
The number of Delta shares to which shareholders are entitled will be determined with reference to the ratio 
that 39.39818 cents per Delta share bears to the five-day volume weighted average traded price (cum dividend) 
of Delta shares on the JSE prior to the finalisation date, which will be no later than Tuesday, 
20 November 2018.

The Board of directors of Delta, at its discretion, may withdraw the dividend reinvestment alternative should market
conditions warrant such action and such withdrawal will be communicated to shareholders prior to the finalisation
announcement to be published by 11:00 on Tuesday, 20 November 2018.

Salient dates relating to the cash dividend and the dividend reinvestment alternative:
                                                                                            2018    
Declaration date of cash dividend and                                     
dividend reinvestment alternative                                             Monday, 5 November    
Circular and form of election posted to                                   
Delta shareholders                                                         Wednesday, 7 November    
Announcement of dividend reinvestment                                     
alternative ratio (including reinvestment 
price) and finalisation information ("finalisation date") 
released on SENS by 11:00                                                   Tuesday, 20 November    
Last day to trade in order to be eligible for the cash 
dividend and dividend reinvestment alternative                               Tuesday, 4 December    
Delta shares commence trading ex cash dividend and                    
dividend reinvestment alternative                                          Wednesday, 5 December    
Last day to elect to receive the dividend reinvestment                
alternative (no late forms of election will be accepted) by 12:00             Friday, 7 December    
Listing of maximum possible number of Delta shares in respect         
of the dividend reinvestment alternative commences on the JSE                 Friday, 7 December    
Record date of cash dividend and dividend reinvestment alternative            Friday, 7 December    
Announcement of results of cash dividend and dividend                 
reinvestment alternative on SENS                                             Monday, 10 December    
Cheques posted to certificated shareholders and accounts credited 
by CSDP or broker to dematerialised shareholders electing 
the cash dividend on                                                         Monday, 10 December    
Announcement of results of cash dividend and dividend 
reinvestment alternative in the press                                       Tuesday, 11 December    
Share certificates posted to certificated shareholders and accounts 
credited by CSDP or broker to dematerialised shareholders electing 
the dividend reinvestment alternative on                                  Wednesday, 12 December    
Adjustment to Delta shares listed on or about                              Thursday, 13 December    

Notes:
1. All dates and times indicated are South African dates and times.
2. All dates and times indicated are subject to change. Any change will be announced on SENS.
3. Shares may not be dematerialised or rematerialised between commencement of trade on Wednesday, 
   5 December 2018 and the close of trade on Friday, 7 December 2018, both dates included.
4. Shareholders electing the dividend reinvestment alternative should note that settlement of the 
   Delta shares will occur three business days after the record date, which differs from the 
   conventional one business day after the record date settlement process.

Trading in the Strate environment does not permit fractions or fractional entitlements. Accordingly, 
where a shareholder's entitlement to the Delta shares in relation to the dividend reinvestment 
alternative calculated in accordance with the formula mentioned above, gives rise to a fraction of 
a new Delta share, such fraction will be rounded down to the nearest whole number and the cash balance 
will be paid to the shareholder.

The distribution of the circular and/or accompanying documents and the right to elect the dividend
re-investment alternative in jurisdictions other than the Republic of South Africa may be restricted 
by law and failure to comply with any of these restrictions may constitute a violation of the securities 
laws of any such jurisdictions. Accordingly, shareholders will not be entitled to receive the dividend 
reinvestment alternative, directly or indirectly, in those jurisdictions and shall be deemed to have 
elected the cash dividend. More specifically, the Delta shares have not been and will not be registered 
for the purposes of the election under the securities laws of the United Kingdom, European Economic 
Area or EEA, Canada, United States of America, Japan or Australia and accordingly are not being offered, 
sold, taken up, resold or delivered directly or indirectly to recipients with registered addresses in 
such jurisdictions.

Tax implications
In accordance with Delta's status as a REIT, shareholders are advised that the cash 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"). An announcement informing shareholders of the tax treatment of the 
distributions will be released separately on SENS.

Basis of preparation and accounting policies
The unaudited condensed consolidated interim results have been prepared in accordance with the International
Financial Reporting Standards (IFRS), IAS 34: Interim Financial Reporting, the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Reporting Standards Council, the JSE Listings Requirements and the requirements of the Companies Act of South
Africa. The accounting policies applied in the preparation of these interim results are in terms of IFRS and 
are consistent with those applied in the previous annual financial statements.

The condensed consolidated interim results have been prepared under the supervision of the Chief Financial
Officer, Mr Shaneel Maharaj CA(SA)/HDip Tax, and have not been reviewed nor audited by the independent 
external auditor BDO South Africa Incorporated. Delta has complied with IFRS and JSE Listings Requirements by
disclosing earnings and headline earnings per share, with distribution per share being disclosed voluntarily.

By order of the Board

JB Magwaza            SH Nomvete 
(Chairman)            (Chief Executive Officer)

2 November 2018

Consolidated statement of financial position
as at 31 August 2018
                                                   Unaudited for       Unaudited for       Audited for     
                                                       the half-           the half-          the year     
                                                      year ended          year ended             ended    
                                                       31 August           31 August       28 February     
                                                            2018                2017              2018    
                                                           R'000               R'000             R'000    
Assets                                                                                                    
Non-current assets                                                                                        
Investment property                                   10 561 140          10 124 585        10 535 000    
 Fair value of investment property                    10 383 457           9 934 190        10 342 418    
 Straight-line rental income accrual                     177 683             190 395           192 582    
Property, plant and equipment                              2 069               3 090             2 557    
Investment in Grit                                       453 468             398 304           381 868    
Total non-current assets                              11 016 677          10 525 979        10 919 425    
Current assets                                                                                            
Loans due from related parties                            46 995              45 497            55 243    
Loan receivable                                           45 835              21 364            48 465    
Derivative financial instruments                               -                 164                 -    
Current tax receivable                                       526                 526               526    
Trade and other receivables                              409 068             285 123           338 845    
Cash and cash equivalents                                 22 648              60 772           100 177    
Total current assets                                     525 072             413 446           543 256    
Non-current assets held for sale                         974 727           1 205 844           972 600    
 Fair value of investment property                       959 558           1 187 128           957 466    
 Straight-line rental income accrual                      15 169              18 716            15 134    
Total assets                                          12 516 476          12 145 269        12 435 281    
Equity and liabilities                                                                                    
Total equity attributable to equity holders                                                               
Share capital                                          4 866 080           4 845 248         4 854 032    
Reserves                                                 139 425             141 906           144 230    
Retained income                                        2 079 279           1 933 494         2 160 330    
Total equity                                           7 084 784           6 920 648         7 158 592    
Liabilities                                                                                               
Non-current liabilities                                                                                   
Interest-bearing borrowings                            2 981 210           3 039 048         2 688 755    
Derivative financial instruments                           4 527              39 989            31 475    
Total non-current liabilities                          2 985 737           3 079 037         2 720 230    
Current liabilities                                                                                       
Interest-bearing borrowings                            2 140 744           1 996 696         2 263 935    
Derivative financial instruments                          42 410              34 094            11 426    
Trade and other payables                                 166 237             109 880           183 983    
Bank overdraft                                            96 564               4 914            97 115    
Total current liabilities                              2 445 955           2 145 584         2 556 459    
Liabilities associated with disposal 
groups held for sale                                                 
Total liabilities                                      5 431 692           5 224 621         5 276 689    
Total equity and liabilities                          12 546 476          12 145 269        12 435 281    

Consolidated statement of comprehensive income
for the period ended 31 August 2018
                                                   Unaudited for       Unaudited for       Audited for     
                                                       the half-           the half-          the year     
                                                      year ended          year ended             ended    
                                                       31 August           31 August       28 February     
                                                            2018                2017              2018    
                                                           R'000               R'000             R'000    
Revenue                                                                                                   
Rental income                                            794 506             782 341         1 562 033    
Straight-line rental income accrual                      (14 863)               (699)            2 020    
                                                         779 643             781 642         1 564 053    
Property operating expenses                             (254 083)           (205 266)         (414 168)   
Net property rental and related income                   525 560             576 376         1 149 885    
Other income                                               1 103                  19            20 287    
Administration expenses                                  (46 672)            (45 949)          (53 329)   
(Loss)/gain on foreign exchange differences              (35 589)              1 664            16 881    
Net operating profit                                     444 402             532 110         1 133 724    
Fair value adjustments                                    72 370             (86 698)          104 759    
Profit from operations                                   516 772             445 412         1 238 483    
Finance costs                                           (248 604)           (235 967)         (482 179)   
Interest income                                           12 698              12 840            19 696    
Share of profit in associate                                   -              19 225            43 970    
Impairment of investment in associate                          -                               (21 900)   
Profit before tax                                        280 866             241 510           798 070    
Taxation                                                       -                   -                 -    
Profit for the period                                    280 866             241 510           798 070    
Other comprehensive income:                                                                                
Items that may be reclassified                    
subsequently to profit or loss                                             
Share of foreign currency translation reserve     
of associate transferred to profit or loss                (4 805)              2 127             4 451    
Total comprehensive income for the period                276 061             243 637           802 521    
Profit for the period attributable to:                                                                    
Owners of the parent                                     280 866             241 510           798 070    
Total comprehensive income attributable to:                                                               
Owners of the parent                                     276 061             243 637           802 521
Basic and diluted earnings per share (cents)               39.51               33.99            112.26    

Consolidated statement of changes in equity
for the period ended 31 August 2018
                                              Foreign     Deferred                                         
                                             currency         con-                                        
                                  Share   translation   sideration      Total     Retained       Total     
                                capital       reserve      reserve   reserves       income      equity    
                                  R'000         R'000        R'000      R'000        R'000       R'000    
Balance at 1 March 2017       4 845 248           354      139 425    139 779    2 056 589   7 041 616    
Profit for the year                   -             -            -          -      798 070     798 070    
Other comprehensive income            -         4 451            -      4 451            -       4 451    
Total comprehensive                                                                         
income for the year                   -         4 451            -      4 451      798 070     802 521    
Dividend reinvestment             8 784             -            -          -            -       8 784    
Distribution paid                     -             -            -          -     (694 329)   (694 329)   
Balance at 28 February 2018   4 854 032         4 805      139 425    144 230    2 160 330   7 158 592    
Profit for the period                 -             -            -          -      280 866     280 866    
Other comprehensive income            -        (4 805)           -     (4 805)                  (4 805)   
Total comprehensive                                                                         
income for the year                   -        (4 805)           -     (4 805)     280 866     276 061    
Dividend reinvestment            12 048                                                         12 048    
Distribution paid                     -             -            -          -     (361 917)   (361 917)   
Balance at 31 August 2018     4 866 080             -      139 425    139 425    2 079 279   7 084 784    

Consolidated statement of cash flows
for the period ended 31 August 2018

                                                   Unaudited for       Unaudited for       Audited for     
                                                       the half-           the half-          the year     
                                                      year ended          year ended             ended    
                                                       31 August           31 August       28 February     
                                                            2018                2017              2018    
                                                           R'000               R'000             R'000    
Cash generated from operations                           377 960             505 583         1 132 324    
Finance costs                                           (246 971)           (232 772)         (475 899)   
Interest received                                          4 992              12 194            12 158    
Taxation refund                                                -                 627               627    
Dividends received                                        17 080              14 062            18 587    
Net cash from operating activities                       153 061             299 694           687 797    
Acquisition of property, plant and equipment                 (68)               (430)             (498)   
Capital expenditure on investment 
property and assets held for sale                        (40 197)            (90 143)         (185 436)   
Proceeds of disposal of 
property, plant and equipment                                 12                   -                 -    
Proceeds on disposal of assets held for sale                   -             105 526           205 200    
Gross movement in loans with related parties              25 049              28 835            26 223    
Decrease/(increase) in loan receivable                     5 534                   -           (48 465)   
Net cash from investing activities                        (9 670)             43 788            (2 976)   
Dividend reinvestment                                     12 048                   -             8 784    
Dividends paid                                          (361 917)           (364 650)         (694 329)   
Repayment of derivative financial instrument                   -              (9 024)                -    
Increase in interest-bearing borrowings                  180 000              42 037           220 358    
Repayment of interest-bearing borrowings                 (50 500)           (108 825)         (360 385)   
Repayment of other financial liabilities                       -                   -            (9 025)   
Net cash from financing activities                      (220 369)           (440 462)         (834 597)   
Net movement in cash and cash equivalents                (76 978)            (96 980)         (149 776)   
Cash at the beginning of the period                        3 062             152 838           152 838    
Total (overdraft)/cash at the end of the period          (73 916)             55 858             3 062    

Reconciliation of earnings, headline earnings and distributable earnings
for the period ended 31 August 2018
                                                   Unaudited for       Unaudited for       Audited for     
                                                       the half-           the half-          the year     
                                                      year ended          year ended             ended    
                                                       31 August           31 August       28 February     
                                                            2018                2017              2018    
                                                           R'000               R'000             R'000    
Profit for the period                                    280 866             241 510           798 070    
Fair value adjustment to investment                                                   
properties                                                     -              57 399          (148 562)   
Change in fair value of Delta's                                                       
investment properties                                          -              55 390          (146 611)   
Change in fair value of associate's                                                   
investment properties                                          -               2 009            (1 951)   
Headline earnings                                        280 866             298 909           649 508    
Fair value adjustment to financial                                                    
instruments (net of deferred taxation)                   (72 370)             31 308               290    
Change in fair value of financial instrument             (72 370)             31 308               290    
Deferred taxation                                              -                   -                 -    
Fair value adjustment to investment in joint                                          
venture (net of deferred taxation)                             -                   -            41 562    
Fair value adjustment on disposal of Baystone                  -                   -            41 562    
Deferred taxation                                              -                   -                 -    
Straight-line rental income accrual                                                   
(net of deferred taxation)                                14 863                 699            (2 020)   
Unrealised foreign exchange loss/(gain)                   35 640              (1 923)          (16 881)   
Antecedent dividend                                          476                   -               257    
Share of profit in associate                                   -             (19 225)          (43 970)   
Impairment of investment in associate                          -                   -            21 900    
Change in fair value of associate's                                                   
investment properties                                          -              (2 009)            1 951    
Dividend income from investment in Grit                   21 747              18 587            35 666    
Prior year retained distribution                               -               3 378             3 378    
Distributable earnings attributable                                                   
to owners of the parent                                  281 222             329 724           691 641    
Less: Distribution declared                              281 222             329 724           691 641    
Interim                                                  281 222             329 724           329 724    
Final (declared after 28 February 2018)                        -                   -           361 917    
Distributable earnings retained                                -                   -                 -    
Shares in issue at the beginning of the year         711 844 486         710 632 183       710 632 183    
Distribution reinvestment                              1 948 980                   -         1 212 303    
Number of shares in issue                            713 793 466         710 632 183       711 844 486    
Shares in issue at the beginning of the year         711 844 486         710 632 183       710 632 183    
Distribution reinvestment weighted                       309 701                   -           295 603    
Weighted average number of shares in issue           712 154 187         710 632 183       710 927 786    
Basic and diluted earnings per share (cents)               39.51               33.99            112.26    
Basic and diluted headline                                                            
earnings per share (cents)                                 39.51               42.06             91.36    
Distribution per share (cents)                                                                            
Distribution per share - interim                           39.40               46.40             46.40    
Distribution per share - final                                 -                   -             50.84    
Distribution per share declared for the full year          39.40                46.4             97.24    
The Fund has no dilutionary instruments in issue.                                                         

Condensed consolidated segmental analysis
for the period ended 31 August 2018
                                                                                 Admini-                  
                                                                                stration                   
                                                                                     and                   
                                            Office      Office                 corporate                   
                               Retail   government       other   Industrial        costs         Total    
                                R'000        R'000       R'000        R'000        R'000         R'000    
Unaudited for the half-year                                                               
ended 31 August 2018                                                                      
Revenue                        19 738      560 328     183 672       15 905            -       779 643    
Net property rental                                                                       
and related income             12 311      393 641     107 818       11 790            -       525 560    
Total assets                  338 282    8 444 722   2 913 492      191 669      628 311    12 516 476    
Total liabilities             173 620    4 336 336   1 842 247       94 192   (1 014 703)    5 431 692    
Unaudited for the half year                                                               
ended 31 August 2017                                                                      
Revenue                        24 210      606 507     138 036       12 889            -       781 642    
Net property rental and                                                                   
related income                 17 348      464 913      84 927        9 188            -       576 376    
Total assets                  325 484    8 037 049   3 051 269      221 972      509 495    12 145 269    
Total liabilities             200 798    5 180 337   2 098 833      115 463   (2 370 810)    5 224 621    
Audited for the year                                                                      
ended 28 February 2018                                                                    
Revenue                        42 635    1 133 798     362 545       25 075            -     1 564 053    
Net property rental and                                                                   
related income                 28 835      879 238     223 414       18 398            -     1 149 885    
Total assets                  360 252    8 358 595   2 926 852      190 656      598 926    12 435 281    
Total liabilities             187 411    4 696 358   1 947 170      105 236   (1 659 486)    5 276 689    

The segmental report has been populated based on a per building classification which is in accordance 
with the majority tenant.

Corporate information
Directors
JB Magwaza^ (Chairman), SH Nomvete* (CEO), S Maharaj* (CFO), ON Tshabalala* (COO), N Khan~, 
DN Motau^, ID Macleod^, MJN Njeke^#, NN Afolayan^, MCR Rampheri~
*Executive  ^Independent non-executive  ~Non-executive  #Lead independent director

Registered office
Silver Stream Office Park, 10 Muswell Road South, Bryanston 
(Postnet Suite 210, Private Bag X21, Bryanston, 2021)

Transfer secretaries
Computershare Investor Services Proprietary Limited 

Sponsor
Nedbank Corporate and Investment Banking

www.deltafund.co.za
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