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INDLUPLACE PROPERTIES LIMITED - Unaudited financial results for the six months ended 31 March 2019

Release Date: 09/05/2019 07:05
Code(s): ILU     PDF:  
 
Wrap Text
Unaudited financial results for the six months ended 31 March 2019

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 FINANCIAL RESULTS
for the six months ended 31 March 2019
 
Nature of business
Indluplace is the only residential REIT listed on the main board of the JSE. In the almost four
years since listing it has grown its residential portfolio by 269% from 3 690 units to 9 933 units.
It is a focussed South African property fund operating mainly in the inner city area of the large
metropoles. Indluplace ensures that its growing portfolio remains professionally managed to
provide competitive investment 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 ENDED      THE 6 MONTHS ENDED         THE YEAR ENDED   
R                                                                                        31 MARCH 2019           31 MARCH 2018      30 SEPTEMBER 2018   
Contractual rental income                                                                  265 246 288             282 522 683            563 481 852   
Net property expenses                                                                     (85 779 777)            (77 624 882)          (146 817 312)   
Net property income                                                                        179 466 511             204 897 801            416 664 540   
DISTRIBUTABLE INCOME                                                                                                                                    
Amount available for distribution                                                          120 477 201             154 738 052            311 483 183   
Distributed for the six months ended:                                                                                                                   
6 months ended - 31 March                                                                  120 477 201             154 738 052            154 738 052   
6 months ended - 31 September                                                                        -                       -            156 745 131   
Total distributions                                                                        120 477 201             154 738 052            311 483 183   
DIVIDEND FOR HALF YEAR ENDED 31 MARCH AND YEAR ENDED 30 SEPTEMBER                                CENTS                   CENTS                  CENTS   
6 months ended 31 March                                                                       37,49077                48,56125               48,56125   
6 months ended 30 September                                                                                                  -               49,19113   
Total distributions per share                                                                 37,49077                48,56125               97,75238   
Property expense ratio - net (%)                                                                  32,3                    27,5                   26,1   
Net asset value per share (cents)                                                               992,92                1 048,95               1 009,30   
SHARES USED IN CALCULATION OF THE DIVIDEND FOR THE HALF YEAR ENDED:                                                                                     
31 March                                                                                  321 351 669^            318 645 117^           318 645 117^   
30 September                                                                                         -                       -           318 645 117^   

^ - Per IFRS 2, 22 440 285 shares have been excluded from the number of shares in issue.                                                                 


COMMENTARY

Revenue
Total revenue includes contractual rental income and expenditure that is recoverable from tenants. Revenue, excluding straight line rental income,
has decreased from R334,7 million at 31 March 2018 to R318,3 million at 31 March 2019. R16,0 million of the decrease relates to the non-renewal of
bulk leases at Highveld View, a property situated in Emalahleni. The balance of R0,4 million relates to lower escalations combined with the additional 
rent specials necessary to fill the vacancies on the balance of the portfolio.


Property portfolio                                                                 FOR THE SIX MONTHS ENDED    FOR THE SIX MONTHS    FOR THE YEAR ENDED
                                                                                              31 MARCH 2019   ENDED 31 MARCH 2018     30 SEPTEMBER 2018
                                        Buildings                                                       176                   171                   176
Residential (including student units)   Units                                                         9 933                 9 662                 9 788
                                        Vacancy (%)                                                     8,5                   6,3                   8,4
                                        GLA - m 2                           
                                                                                                     20 583                17 764                18 163
Retail                               
                                        Vacancy (%)                                                     1,0                   1,5                   0,7

RESIDENTIAL UNIT SPREAD     %       RESIDENTIAL UNIT CATEGORY                        %         EXPOSURE TO HEAD / BULK LEASES     %   
Johannesburg suburbs       47       Rooms                                            7         No exposure                       86   
Johannesburg inner city    31       Bachelor                                        16         Vanderbijlpark                    13   
Pretoria/Midrand           10       One bed                                         20         Other                              1   
Witbank                     5       Two bed                                         47                                                
Vanderbijlpark              5       Three bed                                        8                                                
Durban                      1       Other                                            2                                                
Bloemfontein                1                                                                                                         
Total                     100       Total*                                         100         Total                            100   
                                    * Including student units housing 2 655 beds                                                      

Vacancies have increased from 6,3% at 31 March 2018, being the comparable reporting period, to 8,5% (5,7% excluding Highveld View) at 31 March 2019. 
Vacancies are distorted by the increased vacancies at Highveld View from 8 units at 31 March 2018 to 282 units at 31 March 2019, impacted by the 
reduction in employment at Eskom and the consequential non-renewal of bulk residential contracts with contractors.

Property expenses
Property expenses have increased by 7% from R129,8 million at 31 March 2018 to R138,9 million at 31 March 2019 as a result
of higher than inflationary municipal cost increases ranging between 6% and 14% combined with additional fees associated
with non-paying tenants. The net expense ratio of 32,3% is higher than that for previous years, as a result of the increased
municipal costs, combined with the distortion of the partly vacant Highveld View property.

Administration costs
Administration costs have increased from R7,4 million at 31 March 2018 to R9,9 million at 31 March 2019 as a result of increased
professional fees, audit fees, non-executive director fees and staff costs.

Finance income                                                                             FOR THE 6 MONTHS      FOR THE 6 MONTHS   FOR THE YEAR ENDED   
R                                                                                       ENDED 31 MARCH 2019   ENDED 31 MARCH 2018    30 SEPTEMBER 2018   
Interest on share purchase and option scheme                                                      8 913 438            10 263 766           20 627 583   
Interest received on cash balances                                                                  926 134             4 342 174            6 716 799   
Total                                                                                             9 839 572            14 605 940           27 344 382                                            

Finance income has decreased from R14,6 million for the six months ended 31 March 2018 to R9,8 million for the six months
ended 31 March 2019. The interest received on cash balances has decreased as a result of decreased cash on hand.


Finance charges                                                                            FOR THE 6 MONTHS      FOR THE 6 MONTHS   FOR THE YEAR ENDED   
R                                                                                       ENDED 31 MARCH 2019   ENDED 31 MARCH 2018    30 SEPTEMBER 2018   
Interest paid on secured financial liabilities                                                                                                            
and swaps                                                                                        58 964 953            57 866 129          116 986 602   
Interest paid on cash balances                                                                            -                40 057              184 889   
Total                                                                                            58 964 953            57 906 186          117 171 491   

Finance charges increased as a result of less money being deposited into the company's revolving access facilities due to the
need for specific capex projects.

Investment property
The increase in investment property relates to the
acquisition of two additional tranches comprising of 70
units each within the Golden Oaks development for
R56 million. The acquisition was funded with external debt.

Trade and other receivables
Trade and other receivables increased from R97,9 million
at 30 September 2018 to R115,2 million. Trade receivables
of R3,8 million are included in the 31 March 2019 balance,
and while this has increased from 30 September 2018, this
is down on the R4,8 million at 31 March 2018. The other
receivables amount includes R62,5 million of cash, held by
the company's property managers in their trust accounts.
The balance is made up of municipal deposits and the
interest element relating to the loans to participants of the
Indluplace share purchase and option scheme.

The Group applies the IFRS 9 simiplified approach to
measuring expected credit losses using a lifetime expected
credit loss provision for trade receivables. The adoption of
this new standard has not resulted in a significant effect on
the unaudited financial results.

Cash and cash equivalents
Cash and cash equivalents increased from R286 407 at
30 September 2018 to R2,3 million at 31 March 2019.

Secured financial liabilities and derivative instrument
Secured financial liabilities increased from R1,3 billion to R1,4 billion. The acquisition of the additional units in Golden Oaks was
funded by a joint ABSA Bank and Investec Bank facility. Cash in excess of R77 million has been placed in the access facilities.
Interest rates on the facilities are as follows:

                                                        MATURITY           DRAWN                         BASE       MARGIN   
Standard Bank                                  01 September 2019     150 000 000                        Prime   less 1,26%   
Standard Bank                       RCF        01 September 2019      27 000 000                        Prime   less 1,26%   
ABSA Bank                           RCF          04 October 2020      22 853 514                        Prime   less 1,35%   
Investec Bank                       RCF          04 October 2020      22 853 514                        Prime   less 1,35%   
ABSA Bank                           3 year       04 October 2020     342 802 157                3 month JIBAR   plus 2,05%   
Investec Bank                       3 year       04 October 2020     342 802 157                3 month JIBAR   plus 2,05%   
ABSA Bank                           5 year       04 October 2022     257 091 763                3 month JIBAR   plus 2,20%   
Investec Bank                       5 year       04 October 2022     257 091 763                3 month JIBAR   plus 2,20%   
                                                                   1 422 494 867                            
                                                                                    
Hedging/SWAPS                                                           NATIONAL   FIXED RATE                                
Standard Bank                       3 year                           150 000 000       10,11%                                
ABSA Bank                           3 year                           275 025 021        7,14%                                
Investec Bank                       3 year                           275 025 021        7,14%                                
ABSA Bank                           3 year                            28 484 987        7,35%                                
Investec Bank                       3 year                            28 484 987        7,35%                                
ABSA Bank                           5 year                           144 979 382         7,7%                                
Investec Bank                       5 year                           144 979 382         7,7%                                
                                                                   1 046 978 780           
                                                                                                     
Drawn debt fixed at year end:       73,8%                                                                                    
Average cost of debt at year end:   9,5%   

Trade and other payables
Trade and other payables decreased from R77,3 million to R71,7 million for the six month period ending 31 March 2019. Trade
payables and accruals of R15,9 million, prepayment of tenant rentals of R17,9 million and deposits from tenants amounting to
R37,9 million are included in the aforesaid balance.

Changes in directorate
As published on SENS on 8 February 2019 as part of the Group's
ongoing commitment to good governance, Mark Kaplan has
resigned as an executive director of Indluplace with effect from
7 February 2019. Imraan Suleman will remain on the board (as a
non- executive director) but has stepped down from his role as
an executive director of the company, also with effect from
7 February 2019. Yondela Silimela resigned as an independent
non-executive director with effect from 30 April 2019 as she is
relocating abroad.

Prospects
The board acknowledges the difficult environment in which
Indluplace operates. Conditions foreseen at the beginning
of the financial year in October 2018 have turned out to be
considerably worse than anticipated. While vacancies have
been kept largely under control, this has come at substantial
costs in terms of low escalations and costly incentives.
Tenants are under increasing pressure with low salary
increases and rising cost of living expenses. This, together
with the year on year impact of the large vacancies at
Highveld View, has resulted in an interim dividend of
37,49 cents per share, substantially lower than the comparable
2018 interim dividend. Whilst management expects conditions
to remain tough over the second half of the year, the company
expects an improved performance based on the building
specific strategies that have been implemented, the increased
head office team, the continued letting at Highveld View
combined with the historical seasonality experienced in the
residential sector. As a result, dividends per share for the
year ending 30 September 2019 are expected to be down by
approximately 20%, when compared to the prior year.

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 a more relavant performance
meausure than earnings or headline earnings per share.                                                                             

Payment of dividend for the 6 months ended 31 March 2019
The board of directors has declared a gross dividend of
37,49077 cents per share (dividend number 13) for the
six months ended 31 March 2019, in accordance with the
timetable set out below:

                                                    2019
Last date to trade cum dividend          Tuesday, 4 June
Shares trade ex dividend               Wednesday, 5 June
Record date                               Friday, 7 June
Payment date                             Monday, 10 June

Shares may not be dematerialised or rematerialised
between Wednesday, 5 June 2019 and Friday, 7 June 2019,
both days inclusive.

Payment of the dividend will be made to shareholders
on Monday, 10 June 2019. In respect of dematerialised
shares, the dividend will be transferred to the CSDP/
broker accounts on Monday, 10 June 2019. Certificated
shareholders' dividend payment will be deposited on or
about Monday, 10 June 2019.


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 ordinary 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. 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 29,99262 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 arrange for 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:
343 791 954

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.

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 2019 have not been reviewed or reported on by the company's
independent auditors, BDO South Africa Incorporated. 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 2018 except for the first time adoption of IFRS 9 and IFRS 15.
These results have been prepared under the supervision of Terry Kaplan CA
(SA), Indluplace's Financial Director.

Condensed consolidated statement of comprehensive income                                                                                                                         
FOR THE 6 MONTHS ENDED 31 MARCH 2019                                                                                                                                             
                                                                                                UNAUDITED FOR        UNAUDITED FOR         AUDITED FOR   
                                                                                           THE 6 MONTHS ENDED   THE 6 MONTHS ENDED      THE YEAR ENDED   
R                                                                                               31 MARCH 2019        31 MARCH 2018   30 SEPTEMBER 2018   
PROPERTY PORTFOLIO REVENUE                                                                                                                               
Contractual rental income                                                                         265 246 288          282 552 683         563 481 852   
Recoveries                                                                                         53 086 330           52 167 572         106 293 266   
Straight line rental income accrual                                                                         -                    -           2 774 044   
Total revenue                                                                                     318 332 618          334 720 255         672 549 162   
Operating costs                                                                                 (138 866 107)        (129 792 454)       (253 110 578)   
Administration costs                                                                              (9 863 929)          (7 399 896)        (15 864 641)   
Net operating profit                                                                              169 602 582          197 527 905         403 573 943   
Changes in fair values                                                                            (8 219 217)         (10 826 641)       (141 851 379)   
Profit from operations                                                                            161 383 365          186 701 264         261 722 564   
Net finance income                                                                               (49 125 381)         (43 300 246)        (89 827 109)   
Finance charges                                                                                  (58 964 953)         (57 906 186)       (117 171 491)   
Interest received                                                                                   9 839 572           14 605 940          27 344 382   
Profit before taxation                                                                            112 257 984          143 401 018         171 895 455   
Taxation                                                                                                    -                    -                   -   
Total comprehensive income for the period                                                         112 257 984          143 401 018         171 895 455   

RECONCILIATION OF EARNINGS, HEADLINE EARNINGS                                                                                                            
Profit for the year attributable to equity holders                                                112 257 984          143 401 018         171 895 455   
Change in fair value of properties                                                                          -                    -         148 337 819   
Headline profit attributable to equity holders                                                    112 257 984          143 401 018         320 233 274   
Number of shares in issue at period end^                                                          321 351 669          318 645 117         318 645 019   
Number of shares in issue used for the calculation of 
dividend per share (last quarter)^                                                                321 351 669          318 645 117         318 645 019   
Weighted average number of shares in issue used for the 
calculation of earnings and headline earnings per share^                                          318 507 028          317 307 598         317 646 864   
Basic and diluted earnings per share (cents)                                                            35,25                45,19               54,12   
Headline and diluted headline earnings per share (cents)                                                35,25                45,19              100,81   
Dividends per share (cents)                                                                             37,49                48,56               97,75   

^ - Per IFRS 2, 22 440 285 shares have been excluded from the number of shares in issue.                                                                                         


Condensed consolidated statement of financial position                                                                                                    
AS AT 31 MARCH 2019                                                                                                                                      
                                                                                                UNAUDITED FOR        UNAUDITED FOR         AUDITED FOR   
                                                                                           THE 6 MONTHS ENDED   THE 6 MONTHS ENDED      THE YEAR ENDED   
R                                                                                               31 MARCH 2019        31 MARCH 2018   30 SEPTEMBER 2018   
ASSETS                                                                                                                                                   
Non-current assets                                                                              4 572 079 632        4 615 932 614       4 483 743 613   
Investment property                                                                             4 344 455 224        4 406 592 316       4 270 425 689   
Fair value of investment property portfolio for accounting purposes                             4 338 430 866        4 403 342 002       4 264 401 331   
Straight line rental income accrual                                                                 6 024 358            3 250 314           6 024 358   
Computer software                                                                                      97 620              177 334             184 504   
Loans to participants of Indluplace share purchase and option scheme                              227 526 788          209 162 964         208 526 646   
Derivative instruments                                                                                      -                    -           4 606 774   
Current assets                                                                                    117 547 077          138 077 238          98 184 154   
Trade and other receivables                                                                       115 241 520          133 678 368          97 897 747   
Cash and cash equivalents                                                                           2 305 557            4 398 870             286 407   
Total assets                                                                                    4 689 626 709        4 754 009 852       4 581 927 767   

EQUITY AND LIABILITIES                                                                                                                                   
Shareholders' interest                                                                          3 190 077 261        3 342 441 976       3 216 099 141   
Stated capital                                                                                  3 051 853 350        3 033 288 346       3 033 167 513   
Retained income                                                                                   118 230 444          289 160 163         162 938 161   
Share based payment reserve                                                                        19 993 467           19 993 467          19 993 467   
Other non-current liabilities                                                                   1 250 840 193        1 310 387 193       1 136 849 338   
Secured financial liabilities                                                                   1 245 494 867        1 295 948 003       1 136 849 338   
Derivative instruments                                                                              5 345 326           14 439 190                   -   
Current liabilities                                                                               248 709 255          101 180 683         228 979 288   
Trade and other payables                                                                           71 709 255          101 180 683          77 246 405   
Derivative instruments                                                                                      -                    -           1 732 883   
Secured financial liabilities                                                                     177 000 000                    -         150 000 000   
Total equity and liabilities                                                                    4 689 626 709        4 754 009 852       4 581 927 767   
Number of shares in issue^                                                                        321 351 669          318 645 117        318 645 019^   
Net asset value per ordinary share (cents)                                                             992,71             1 048,96            1 009,30   

^ - Per IFRS 2, 22 440 285 shares have been excluded from the number of shares in issue.                                                                 


Statement of changes in equity                                                                                      
FOR THE 6 MONTHS ENDED 31 MARCH 2019                                                                                
                                                                                                                       SHARE BASED                       
R                                                                       STATED CAPITAL        RETAINED INCOME     PAYMENT RESERVES               TOTAL   
Balance at 30 September 2017                                             2 755 180 753            223 610 815                    -       2 978 791 568   
Issue of shares                                                            286 716 198                      -                    -         286 716 198   
Share buy-backs                                                            (8 729 438)                      -                    -         (8 729 438)   
Total comprehensive income for the 6 months                                          -            143 401 018                    -         143 401 018   
Share based payments                                                                 -                      -           19 993 467          19 993 467   
Dividends                                                                            -           (77 830 057)                    -        (77 830 057)   
Balance at 31 March 2018                                                 3 033 167 513            289 181 776           19 993 467       3 342 342 756   
Total comprehensive income for the year                                              -             28 491 437                    -          28 491 437   
Dividends                                                                            -          (154 738 052)                    -       (154 738 052)   
Balance at 30 September 2018                                             3 033 167 513            162 935 161           19 993 467       3 216 096 141   
Issue of shares                                                             18 685 837                      -                    -          18 685 837   
Total comprehensive income for the year                                              -            112 257 984                    -         112 257 984   
Dividends                                                                            -          (156 962 701)                    -       (156 962 701)   
Balance at 31 March 2019                                                 3 051 853 350            118 230 444           19 993 467       3 190 077 261   


Consolidated statement of cash flow                                                                                                
FOR THE 6 MONTHS ENDED 31 MARCH 2019                                                                                                                     
                                                                                                UNAUDITED               UNAUDITED              AUDITED   
                                                                                   FOR THE 6 MONTHS ENDED  FOR THE 6 MONTHS ENDED   FOR THE YEAR ENDED   
R                                                                                           31 MARCH 2019           31 MARCH 2018    30 SEPTEMBER 2018   
Net cash generated from utilised in operating activities                                     (59 282 539)              47 375 165           61 460 477   
Cash generated from operations                                                                146 805 543             168 505 468          383 855 695   
Dividend paid                                                                               (156 962 701)            (77 830 057)        (232 568 109)   
Finance charges paid                                                                         (58 964 953)            (57 906 186)        (117 171 491)   
Finance income received                                                                         9 839 572              14 605 940           27 344 382   
Net cash utilised in investment activities                                                   (74 029 535)         (1 301 661 591)      (1 310 438 501)   
Net acquisition and additions to investment property                                         (74 029 535)        (1 301 640 750)*     (1 312 383 136)*   
Net acquisition of computer software                                                                    -                (20 841)             (50 900)   
Proceeds from disposal of assets                                                                        -                       -            1 995 535   
Net cash generated from financing activities                                                  135 331 224           1 217 737 201        1 208 316 336   
Share issue costs paid                                                                          (314 305)            130 114 216*         130 004 613*   
Proceeds from secured financial liabilities                                                   135 645 529           1 239 348 825        1 210 041 161   
Share buy-backs                                                                                         -             (8 725 840)          (8 729 438)   
Repayment of secured financial liabilities                                                              -           (143 000 000)        (123 000 000)   
Net movement in cash and cash equivalents                                                       2 019 150            (36 549 225)         (40 661 688)   
Cash and cash equivalents at the beginning of the period                                          286 407              40 948 095           40 948 095   
Cash and cash equivalents at the end of the period                                              2 305 557               4 398 870              286 407   

* Excludes the non-cash flow effects of the 14 495 938 vendor shares that were issued at R9,65 to part fund the Buffet acquisition 
  amounting to R139 885 802.

Condensed consolidated segmental analysis
The entity has 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 6 MONTHS ENDED 31 MARCH 2019
R                                                                        GAUTENG     FREE STATE        MPUMALANGA      KWAZULU-NATAL            TOTAL
PROPERTY PORTFOLIO REVENUE
Rental income and recoveries                                         309 147 418      1 629 076         4 459 462          3 096 662      318 332 618
Straight line rental income accrual                                            -              -                 -                  -                -
Total revenue                                                        309 147 418      1 629 076         4 459 462          3 096 662      318 332 618
Operating costs                                                    (133 329 063)      (529 321)       (3 216 772)        (1 790 951)    (138 866 107)
                                                                     175 818 355      1 099 755         1 242 690          1 305 711      179 466 511
Administration costs                                                                                                                      (9 863 929)
Net operating profit                                                                                                                      169 602 582
Changes in fair values                                                                                                                    (8 219 217)
Profit from operations                                                                                                                    161 383 365
Net finance (charges)/income                                                                                                             (49 125 381)
Finance charges                                                                                                                          (58 964 953)
Finance income                                                                                                                              9 839 572
Profit before taxation                                                                                                                    112 257 984
Taxation                                                                                                                                            -
Total comprehensive income for the period                                                                                                 112 257 984
Reportable segment assets                                          4 041 902 368     26 770 615       252 911 417         51 356 229    4 372 940 629
Corporate segment assets                                                                                                                  316 686 080
Reportable segment liabilities                                      (26 470 567)      (437 642)       (4 559 872)        (1 910 656)     (33 378 737)
Corporate segment liabilities                                                                                                         (1 466 170 711)
                                                                   4 015 431 801     26 332 973       248 351 545         49 445 573    3 190 077 261
UNAUDITED FOR THE 6 MONTHS ENDED 31 MARCH 2018
R                                                                        GAUTENG     FREE STATE        MPUMALANGA      KWAZULU-NATAL            TOTAL
PROPERTY PORTFOLIO REVENUE 
Rental income and recoveries                                         309 511 233      1 576 359        20 462 512          3 170 151      334 720 255
Straight line rental income accrual                                            -              -                 -                  -                -
Total revenue                                                        309 511 233      1 576 359        20 462 512          3 170 151      334 720 255
Operating costs                                                    (123 942 850)      (434 218)       (3 980 660)        (1 434 726)    (129 792 454)
                                                                     185 568 383      1 142 141        16 481 852          1 735 425      204 927 801
Administration costs                                                                                                                      (7 399 896)
Net operating profit                                                                                                                      197 527 905
Changes in fair values                                                                                                                   (10 826 641)
Profit from operations                                                                                                                    186 701 264
Net finance (charges)/income                                                                                                             (43 300 246)
Finance charges                                                                                                                          (57 906 186)
Finance income                                                                                                                             14 605 940
Profit before taxation                                                                                                                    143 401 018
Taxation                                                                                                                                            -
Total comprehensive income for the period                                                                                                 143 401 018
Reportable segment assets                                          4 143 982 806     25 158 554       328 075 660         44 405 468    4 541 622 488
Corporate segment assets                                                                                                                  212 387 364
Reportable segment liabilities                                      (90 115 581)    (1 300 697)       (8 494 907)        (1 269 498)    (101 180 683)
Corporate segment liabilities                                                                                                         (1 310 387 193)
                                                                   4 053 867 225     23 857 857       319 580 753         43 135 970    3 342 441 976                                                                                                                                             

AUDITED FOR THE YEAR ENDED 30 SEPTEMBER 2018
R                                                                        GAUTENG     FREE STATE        MPUMALANGA      KWAZULU-NATAL            TOTAL
PROPERTY PORTFOLIO REVENUE
Rental income and recoveries                                         623 328 763      3 254 707        35 604 831          7 586 817      669 775 118
Straight line rental income accrual                                    2 774 043              -                 -                  -        2 774 043
Total revenue                                                        626 102 806      3 254 707        35 604 831          7 586 817      672 549 161
Operating costs                                                    (238 706 026)      (974 552)       (9 906 689)        (3 523 311)    (253 110 578)
                                                                     387 396 780      2 280 155        25 698 142          4 063 506      419 438 583
Administration costs                                                                                                                     (15 864 641)
Net operating profit                                                                                                                      403 573 942
Changes in fair values                                                                                                                  (141 851 379)
Profit from operations                                                                                                                    261 722 563
Net finance (charges)/income                                                                                                             (89 827 109)
Finance charges                                                                                                                            27 344 382
Finance income                                                                                                                          (117 171 491)
Profit before taxation                                                                                                                    171 895 454
Taxation                                                                                                                                            -
Total comprehensive income for the period                                                                                                 171 895 454
Reportable segment assets                                          3 985 836 536     26 770 615       255 188 416         50 326 978    4 318 122 545
Corporate segment assets                                                                                                                  263 805 223
Reportable segment liabilities                                      (26 470 567)    (1 990 400)       (7 206 249)        (1 772 465)     (37 439 681)
Corporate segment liabilities                                                                                                         (1 328 388 944)
                                                                   3 959 365 969     24 780 215       247 982 167         48 554 513    3 216 099 143
                          UNAUDITED FOR        UNAUDITED FOR         AUDITED FOR   
                                                                                          THE 6 MONTHS ENDED   THE 6 MONTHS ENDED      THE YEAR ENDED   
R                                                                                              31 MARCH 2019        31 MARCH 2018   30 SEPTEMBER 2018   
RECONCILIATION OF COMPREHENSIVE INCOME FOR THE PERIOD TO DISTRIBUTABLE EARNINGS                                                                         
Total comprehensive income for the period                                                        112 257 984          143 401 018         171 895 455   
Change in fair value of derivative instruments                                                     8 219 217           10 826 641         (6 486 440)   
Change in fair value of properties                                                                         -                    -         148 337 819   
Straight line rental income accrual                                                                        -                    -         (2 774 044)   
Deferred tax thereon                                                                                       -                    -                   -   
Antecedent dividends                                                                                       -              510 393             510 393   
Amount available for distribution                                                                120 477 201          154 738 052         311 483 183   
RECONCILIATION OF AMOUNT AVAILABLE FOR DISTRIBUTION FOR THE SIX MONTHS                                                                                  
Amounts available for distribution to shareholders                                               120 477 201          154 738 052         311 483 183   
31 March                                                                                                   -                    -       (154 738 052)   
Amount available for distribution for the six months/year ended:                                 120 477 201          154 738 052         156 745 131   
Dividend per share (cents)                                                                             37,49                48,56               97,75   


By order of the Board
9 May 2019

Directors
T Adler (Chairperson)*, C Abrams*^, C de Wit (CEO), T Kaplan (FD),
G Kinross*^ (Lead independent director), S Noik*, A Rehman*^, 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

www.indluplace.co.za



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