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REBOSIS PROPERTY FUND LIMITED - Unaudited results for the six months ended 28 February 2019

Release Date: 14/05/2019 09:00
Code(s): REB REA REBC09     PDF:  
 
Wrap Text
Unaudited results for the six months ended 28 February 2019

REBOSIS PROPERTY FUND LIMITED
(Rebosis or the company) 
(Registration number 2010/003468/06)
(Approved as a REIT by the JSE)
JSE share code Rebosis A share: REA
JSE share code Rebosis Ordinary share: REB
Alpha code: REBI 
ISIN Rebosis A share: ZAE000240552
ISIN Rebosis Ordinary share: ZAE000201687

UNAUDITED RESULTS for the six months ended 28 February 2019

Highlights

Tangible NAV B Shares*
R8.82 

Retail trading density growth
3.9% 

Total Assets
R17.5bn

UK investment cross currency
(R75m)

Net Property Income growth 
(3.0%)

Vacancy 
6.4%

UK Asset Write-down 
(R2bn)

UK income impact
(R96m)


* The reported tangible NAV attributable to the REB shares is the net asset value excluding goodwill after netting off market cap of REA shares


RETAIL

6 high quality dominant malls
Baywest, Hemingways, Forest Hill,  
Mdantsane, Sunnypark and Bloed Street
Strong national tenant profile
Secure, escalating income streams
Weighted average lease expiry of 3.8 years
Average contractual escalation of 6.9%
Portfolio by GLA 326 008 m2
Portfolio by value 47%

Number of properties                             6
Portfolio valuation R'000                8 100 000
Gross lettable area - m2                   326 008
Value per m2 - R                            24 861

OFFICE

36 predominantly A and B grade well-located properties in nodes attractive to government tenants
6 properties were sold as part of the Boxwood transaction
Let primarily to National Department of Public Works
Weighted average lease expiry of 1 year
Average contractual escalation of 7.2%
Shielded from private sector e.g. tenant cash flow  
and insolvency related default
Portfolio by GLA 496 612 m2
Portfolio by value 52%

Number of properties                            36
Portfolio valuation R'000                8 800 000 
Gross lettable area - m2                   496 612 
Value per m2 - R                            17 724

INDUSTRIAL

Single tenanted industrial warehouse in Johannesburg 
Industrial warehouse acquired in March 2013
Lease underpinned by international listed parent company
Weighted average lease expiry of 7.3 years
Contractual escalation of 6.8%
Portfolio by GLA 18 954 m2
Portfolio by value 1.0%

Number of properties                             1 
Portfolio valuation R'000                  183 000
Gross lettable area - m2                    18 954 
Value per m2 - R                             9 637

STATEMENT OF COMPREHENSIVE INCOME

                                                           Group     
                                           Unaudited for the    Unaudited for the
                                            six months ended     six months ended
                                            28 February 2019     28 February 2018
                                                       R'000                R'000

Investment property income                           970 763             1 043 381 
Net income from facilities management agreement       14 941                13 854 
Management fees received                                   -                 4 833 
Listed property securities and related income              -                33 183 
Straight-line rental adjustment                      (32 387)              100 435 
Revenue                                              953 317             1 195 686 
Property expenses                                   (282 926)             (255 500)
Net property income                                  670 391               940 186 
Other operating expenses                             (70 062)              (65 142)
Operating profit                                     600 329               875 044 
Finance income                                        38 902                81 397 
Finance cost amortisation                            (19 532)               (9 265)
Finance costs                                       (479 317)             (367 342)
Net operating income                                 140 382               579 834 
Other income                                           3 194                     - 
Changes in fair values                            (1 093 570)             (236 721)
Changes in impairments                            (1 073 629)                    - 
Profit before income tax                          (2 023 623)              343 113 
Income tax expense                                         -                     - 
Profit/(loss) for the period                      (2 023 623)              343 113 
Total comprehensive income for the period  
attributable to equity holders                    (2 023 623)              343 113

STATEMENT OF FINANCIAL POSITION

                                                          Group     
                                             Unaudited as at         Audited as at
                                            28 February 2019        31 August 2018
                                                                          Restated
                                                       R'000                 R'000
ASSETS            

Non-current assets                                15 959 303            19 620 370 
Investment property                               14 966 231            16 682 000 
Fair value of property portfolio                  14 608 059            16 266 788 
Straight-line rental income accrual                  358 172               415 212 
Property, plant and equipment                          7 513                 8 595 
Investment in associates                             108 590               992 774 
Loans to associates                                  180 473               180 473 
Other financial assets                               180 499             1 246 995 
Goodwill                                             499 331               499 331 
Derivative instruments                                16 666                10 202 
Current assets                                       328 907               564 995 
Trade and other receivables                          266 902               445 556
Short term portion of derivatives                     15 624                 5 826 
Cash and cash equivalents                             46 381               179 943 
Investment property reclassified 
as held for sale                                   2 128 329             1 403 000 
Total assets                                      18 416 539            21 654 695 

EQUITY AND LIABILITIES           
Equity                                             7 953 675            10 329 420 
Stated capital                                     9 015 068             9 015 068 
(Accumulated loss)/retained earnings              (1 061 393)            1 314 352
Total equity attributable to 
equity owner of the parent                         7 953 675            10 329 420 
Non-current liabilities                            4 842 110             4 926 245 
Interest bearing borrowings                        4 813 748             4 899 095 
Derivative instruments                                28 362                27 150 
Current liabilities                                5 620 754             6 399 030 
Current portion of interest bearing borrowings     5 262 296             5 856 984 
Short term portion of deferred payment liability     124 889               124 936 
Short term portion of derivative instruments          51 461                65 311 
Trade and other payables                             182 108               351 799 
Total liabilities                                 10 462 864            11 325 275 
Total equity and liabilities                      18 416 539            21 654 695 

Number of A ordinary shares in issue              63 266 012            63 266 012 
Number of ordinary shares in issue               699 253 200           699 253 200 
Treasury shares                                   (2 408 326)          (2 408 326)

Number of ordinary shares in issue 
(net of treasury shares)                         696 844 874           696 844 874 
Net asset value per A ordinary - REA ( R)              20.65                 22.75 
Net asset value per ordinary - REB ( R)                 9.54                 12.76 

Gearing %                                              57.3%                 57.9%
Loan to value (%)                                      57.1%                 51.6%

Loan to value calculated in terms 
of REIT best practice           

Net debt                                          10 029 663            10 576 136 
Interest bearing borrowings  
(excluding derivatives)                           10 076 044            10 756 079 
Less: cash and cash equivalents                      (46 381)             (179 943)
Property assets                                   17 564 121            20 505 241 
Investment property                               14 966 231            16 682 000 
Investment property held for sale                  2 128 329             1 403 000 
Listed securities                                    108 590               992 774 
Loan receivable                                      180 499             1 246 995 
Loans to related companies                           180 473               180 473 
Loan-to-value                                          57.1%                 51.6%
Available borrowing capacity                               -                     -

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                          Group     
                                           Unaudited for the     Unaudited for the
                                            six months ended      six months ended
                                            28 February 2019      28 February 2018
                                                                          Restated
                                                       R'000                R'000

Balance at 31 August                              10 461 731            11 847 850 
Prior period restatement - 01 September 2016        (132 311)             (132 311)
Balance at 31 August - Restated                   10 329 420            11 715 539 
Change in accounting policy - 01 September 2018      (66 328)                    - 
Issue of shares                                            -               350 000 
Profit for the year                               (2 023 623)              343 113 
Dividend paid                                       (285 794)             (508 416)
Balance at 28 February                             7 953 675            11 900 236

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
                                                          Group     
                                           Unaudited for the     Unaudited for the
                                            six months ended      six months ended
                                            28 February 2019      28 February 2018
                                                       R'000                 R'000

Cash flow from operating activities                   16 924               122 224 
Cash generated from operations                       490 080               374 990 
Dividend received                                          -                33 179 
Net finance charges paid                            (473 156)             (285 945)
Cash flow from investing activities                  844 345              (333 266)
Capex and tenant installations                       (22 101)             (113 828)
Acquisition of listed securities and investments        (518)             (292 995)
Acquisition of property, plant and equipment          (1 036)                 (276)
Proceeds on sale of assets                           868 000                73 833 
Cash flow from financing activities                 (994 831)              139 454 
Proceeds from issue of shares                              -                 1 451 
Proceeds/(repayments) in financial liabilities      (696 437)              497 937 
Derivative instruments                               (12 600)                    - 
Loans repaid/advanced to related party                     -               (81 110)
Decrease in other financial assets                         -               229 592 
Dividend paid                                       (285 794)             (508 416)
Net movement in  cash and cash equivalents          (133 562)              (71 588)
Cash and cash equivalents at the 
beginning of the period                              179 943               104 642 
Cash and cash equivalents at 
the end of the period                                 46 381                33 054

COMMENTARY

INTRODUCTION

Rebosis is a JSE listed real estate investment trust (REIT) with a high quality diversified portfolio across commercial and retail assets. The majority of the commercial 
income enjoys a sovereign underpin from leases to national government departments across 36 buildings. Its retail portfolio has a mix of dominant and newly built shopping 
centres set to dominate in their nodes in Port Elizabeth (Baywest Mall) and Centurion (Forest Hill City).

FINANCIAL RESULTS

Difficult trading conditions in the retail sector, the uncertainty around Brexit and the National and Provincial elections influenced the environment in which the company 
operated during the first six months of the financial year. 


Distributable income decreased by 61% from R504 million to R195 million for this reporting period of which R96 million was as a direct result of New Frontier Properties. 
In addition, finance costs increased by R97 million due to lower income from cross currency swaps, higher average debt levels and higher borrowing costs. The loss of 
rental warranty income of R42 million and rate rebates of R24 million reduced the distributable income further.

The Board deemed it prudent to deleverage the fund and has therefore resolved to not declare an interim dividend, but rather intends to distribute a full year dividend at 
the final distribution date, being after the conclusion of its year ending 31 August 2019.

The carrying value of the investment portfolio has been adjusted to reflect the values of the assets as per the sales transactions that were announced. The value of the 
direct investment in New Frontier Properties and the loan to the BEE consortium has been written down to the underlying net asset value. The impairment of New Frontier 
Properties of R1 957 million together with the valuation adjustments above, resulted in the loan to value  increasing from 51.6% as at 31 August 2018 to 57.1%.

PROPERTY PORTFOLIO

The consolidated property portfolio of Rebosis is illustrated in the following graphs in terms of sectoral and geographical splits.

As at 28 February 2019


Sectoral spread

Value
Retail         48%
Office         51%
Industrial      1%

GLA
Retail         39%
Office         59%
Industrial      2%

Net Income
Retail         35%
Office         64%
Industrial      1%

Geographic spread

Value
Eastern Cape           4 728 852.97
Gauteng               10 881 732.09
Kwa-Zulu Natal           254 052.51
Mpumalanga                  167 393
North West               139 594.85
Western Cape             701 916.37

GLA
Eastern Cape                197 384
Gauteng                  553 928.31
Kwa-Zulu Natal            18 768.38
Mpumalanga                   14 950
North West                   11 665
Western Cape                 44 878

Net Income
Eastern Cape          136 035 792.1
Gauteng               470 126 683.6
Kwa-Zulu Natal        11 429 674.78
Mpumalanga             8 158 635.99
North West               5938934.71
Western Cape          36 078 527.64

Our South African retail portfolio consists of six high-quality, dominant shopping malls with strong anchor national tenants delivering income streams escalating at a 
weighted average of 6.9%. The office portfolio consists of 36 buildings in nodes attractive to government tenants. These buildings are mainly single-tenanted buildings let 
to the National Department of Public Works, providing for a weighted average escalations of 7.2%. The office portfolio represents a defensive sovereign underpin, shielding 
the group from private sector risks such as tenant insolvency and default which are material risks in the context of sluggish economic growth and constrained consumer 
spend.

The group's expiry profile by gross lettable area is as follows:

                                                                              After
               Monthly     Vacant     28 Feb   28 Feb   28 Feb   28 Feb    28 Feb
                                        2020     2021     2022     2023      2023

Retail              7%         7%        14%      16%      10%       5%       40%
Office             27%         7%        38%      16%       3%       2%        7%
Industrial          0%         0%         0%       0%       0%       0%      100%
Total portfolio    18%         7%        28%      16%       6%       3%       22%

FUNDING

At 28 February 2019, Rebosis' borrowings decreased to R10.1 billion from R10.8 billion as 31 August 2018 due to the utilisation of the proceeds from the Boxwood disposal, 
partially offset by the distribution payment.

The weighted average cost of debt for the six month period increased from 9.3% to 9.5%, largely due to the increase in the Prime rate as well as the refinancing of some of 
the 3m Jibar facilities to Prime facilities.

There are currently hedge arrangements in place for 83.9% of the debt.

The loan to value increased from 51.6% to 57.1% mainly resulting from the write down of New Frontier Properties, the revaluation of assets held for sale and the 
distribution.

                                                         Group     

                                           Unaudited for the     Unaudited for the
                                            six months ended      six months ended
                                            28 February 2019      28 February 2018
                                                       R'000                 R'000

EARNINGS AND HEADLINE EARNINGS
Number of REA shares in issue at period end       63 266 012            63 266 012 
Weighted average number of REA shares in 
issue used for the calculation of earnings 
and headline earnings per share                   63 266 012            63 266 012 
Number of REB shares in issue at period end      696 844 874           670 881 453 
Weighted average number of shares in issue 
used for the calculation of earnings 
and headline earnings per share                  696 844 874           648 121 956 

CONTINUING OPERATIONS                                  R'000                 R'000

Profit attributable to ordinary equity 
holders of the parent entity                      (2 023 623)              343 113

Adjusted for:          
Change in fair value of investment properties        227 375               (36 051)
Change in fair value of investment 
in listed securities                                 884 184                     -
Changes in impairments                             1 073 629                     -
Headline profit attributable to shareholders         161 565               307 062
Basic and diluted earnings per REA share (cents)      132.75                126.43 
Basic and diluted earnings per REB share (cents)     (302.45)                40.60 
Basic and diluted headline 
earnings per REA share (cents)                        132.75                126.43 
Basic and diluted 
headline earnings per REB share (cents)                11.13                 35.04

SEGMENT REPORT

The group classifies segments based on the type of property i.e. Commercial, Retail, Industrial, and Other. Properties can be mixed use properties. In this instance the 
property will be classified according to its principle use. Accordingly, the group only has three reporting segments as set out below. Some of the buildings do have a 
small retail component (normally at street level), but seldom exceeds 10% of the total GLA per building
These operating segments are managed separately based on the nature of the operations. For each of the segments, the group's CEO (the group's chief operating decision-
maker) reviews internal management reports monthly. The CEO considers earnings before taxation to be an appropriate measure of each segment's performance.

                                                                                     Property portfolio                                  Admin and     

For the six months ended 28 February                  Retail               Office            Industrial                Total       corporate costs                Total
2019                                                   R'000                R'000                 R'000                R'000                 R'000                R'000

Property portfolio                                   418 532              528 092                 6 693              953 317                     -              953 317
Investment property income                           406 152              555 573                 9 038              970 763                     -              970 763
Net income from facilities management                      -               14 941                     -               14 941                     -               14 941
Straight line rental income accrual                   12 381              (42 422)               (2 345)             (32 387)                    -              (32 387)
Property expenses                                   (170 304)            (112 363)                 (259)            (282 926)                    -             (282 926)
                         
Net property income                                  248 229              415 729                 6 434              670 391                     -              670 391
Other operating expenses                                   -                    -                     -                    -               (70 062)             (70 062)
Operating income                                     248 229              415 729                 6 434              670 391               (70 062)             600 329
Net interest                                               -                    -                     -                    -              (459 947)            (459 947)
Net operating income                                 248 229              415 729                 6 434              670 391              (530 009)             140 382
Other income                                               -                    -                     -                    -                 3 194                3 194
Changes in fair values                                     -             (327 027)                    -             (327 027)             (766 544)          (1 093 570) 
Changes in impairments                                     -                    -                     -                    -            (1 073 629)          (1 073 629)
Segment profit before taxation                       248 229               88 702                 6 434              343 364            (2 366 989)          (2 023 623)
Investment property                                8 105 031            6 678 545               182 655           12 565 873                     -           14 966 231
Investment property held for sale                          -            2 128 329                     -            4 307 669                     -            2 128 329
Other assets                                         126 895              154 229                    16              281 140             1 040 840            1 321 979
Total assets                                       8 231 926            8 961 102               182 671           17 154 681             1 040 840           18 416 539
Total liabilities                                     64 807               51 705                     -              116 512            10 346 352           10 462 864
                                                                                    Property portfolio                                  Admin and     

For the six months ended 28 February                  Retail               Office            Industrial                Total       corporate costs                Total
2018                                                   R'000                R'000                 R'000                R'000                 R'000                R'000

Property portfolio                                   527 753              602 869                27 048            1 157 670                38 016            1 195 686
Investment property income                           450 154              584 782                 8 445            1 043 381                     -            1 043 381
Net income from facilities management                      -               13 854                     -               13 854                     -               13 854
Management fees received                                   -                    -                     -                    -                 4 833                4 833
Listed security income                                     -                    -                     -                    -                33 183               33 183
Straight line rental income accrual                   77 599                4 233                18 603              100 435                     -              100 435
Property expenses                                   (121 132)            (134 127)                 (241)            (255 500)                    -             (255 500)
Net property income                                  406 621              468 742                26 807              902 170                38 016              940 186
Other operating expenses                                   -                    -                     -                    -               (65 142)             (65 142)
Operating income                                     406 621              468 742                26 807              902 170               (27 126)             875 044
Net interest                                               -                    -                     -                    -              (295 210)            (295 210)
Net operating income                                 406 621              468 742                26 807              902 170              (322 336)             579 834
Changes in fair values                              (205 631)             263 285               (21 603)              36 051              (272 772)            (236 721)
Segment profit before taxation                       200 990              732 026                 5 203              938 219              (595 109)             343 113
Investment property                                8 772 200            8 597 000               170 000           17 539 200                     -           17 539 200
Investment property held for sale                          -            1 403 000                     -            1 403 000                     -            1 403 000
Other assets                                         153 808              277 836                     -              431 645             3 391 336            3 822 981
Total assets                                       8 926 008           10 277 836               170 000           19 373 844             3 391 336           22 765 181
Total liabilities                                     60 276               64 861                   200              125 338            10 602 297           10 727 635

Distributable Income
Non-IFRS information                                    2019                  2018
Reconciliation of profit before tax 
to distributable earnings:                             R'000                 R'000
Total profit before taxation                      (2 023 623)              343 113
Taxation                                                   -                    -
Profit for the period                             (2 023 623)              343 113
Adjusted for:          
Changes in fair value                              1 093 570               236 721
Changes in impairments                             1 073 629                     -
Straight line rental accrual                          32 387              (100 435)
Amortisation of structuring fees                      19 532                 9 271
Corporate transaction costs                                -                 2 699
Antecedent interest                                        -                14 499
Dividend income distributed in previous periods            -               (33 183)
Anticipated distribution from listed REIT subsidiaries     -                31 500
Distributable earnings attributable to 
shareholders/owners of the parent                    195 495               504 185
Distributable income per REA share (cents)            132.75                126.43 
Distributable income per REB share (cents)             16.00                 63.23 
Year-on-year distribution growth REA (%)                5.0%                  5.0%
Year-on-year distribution growth REB (%)              -74.7%                  4.0%


ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND RESTATEMENTS

i) Change in accounting policy

During the year, the Group adopted the New IFRS 9 Financial Instruments standard. IFRS 9 replaces the "incurred loss" model in IAS 39 with a forward-looking "expected 
credit loss (ECL) " model. This requires a loss allowance to be recognised at the amount equal to the lifetime ECLs. Lifetime ECLs result from all possible default events 
over the expected life of a financial instrument.

This requires considerable judgement over how changes in economic factors affect ECLs, which will be determined on a probability-weighted basis.

The new impairment model applies to the following financial instruments that are not measured at Fair value through profit and loss (FVTPL):

- financial assets that are debt instruments;
- lease receivables; and
- loan commitments and financial guarantee contracts issued (previously impairment was measured under IAS 37 Provisions, Contigent Liabilities and Contingent Assets).

Under IFRS 9, no impairment loss is recognised on equity investments.

Impact of assessment

The most significant impact on the Group's financial statements from the implementation of IFRS 9 is expected to result from the new impairment requirements. Impairment 
losses will increase and become more volatile for financial instruments in the scope of the IFRS 9 impairment model.

The Group has estimated that, on adoption of IFRS 9 at 1 September 2018, the net financial impact of the change in classification and measurement after tax is a reduction 
in opening retained earnings of R66million.

ii) Prior period restatement

The Group had incorrectly accounted for a portion of the Goodwill amounting to R132million arising from the acquisition of Billion Property Developments, Baywest City 
Mall, Billion Asset Managers and Billion Property Services on 1 September 2016. This amount was reflected under the short-term portion of other financial assets in the 
annual financial statements for the year-ended 31 August 2018.

This should have reduced the gain on bargain purchase which was recognised in the 2017 financial year. Accordingly the asset of R132million has been written off against 
the retained earnings of 2017.

Impact of assessment

The Group has estimated that the net financial impact of the change in classification and measurement after tax is a reduction in opening retained earnings of R132million.

                                                                       Adjustments
                                                 As reported                  2018             Restated
                                                                             R'000     
Company statements of financial position               
Short-term portion of other financial assets         132 311              (132 311)                   -
Total assets                                      21 787 005              (132 311)          21 654 694
Total equity                                      10 461 730              (132 311)          10 329 419
Opening retained income - 2018                     1 446 662              (132 311)          1 314 3517

SIGNIFICANT RELATED PARTY TRANSACTIONS

Parties are considered related if one party has the ability to exercise control or significant influence over the party making financial or operational decisions. Related 
parties with whom the Group transacted with during the period were:

                                                                     Group     
                                                        2019                  2018
                                                       R'000                 R'000
Loans accounts- owing (to)/by related parties          
New Frontier Properties Limited                      180 473               151 810
Billion Group Proprietary Limited                     (4 889)              (52 780)
Abacus Property Fund                                 (70 000)                    -

Amounts included in trade and other receivables          
Mthatha Mall Proprietary Limited                           -                 7 982
Interest received from related parties          
New Frontier Properties Limited                            -                 8 125
Rental warranty income          
Billion Group Proprietary Limited                          -                40 373
Asset management fee income          
Mthatha Mall Proprietary Limited                           -                 2 908

DECLARATION AND PAYMENT OF CASH DIVIDEND

The Rebosis Board has resolved not to declare an interim dividend but to distribute a full year dividend at the final distribution date.

RETAIL DISPOSAL SUBSEQUENT TO 28 FEBRUARY 2019

Shareholders are referred to the Sens announcement dated 12 May 2019 dealing with the disposal of retail assets.
The Company has entered into a sale of rental enterprise agreement with Vukile Property Fund Limited, dated 12 May 2019 to dispose of the Mdantsane City Shopping Centre, 
the Sunnypark Shopping Centre and the Bloedstreet Mall together with rental enterprises conducted thereon. The properties and the rental enterprises will be sold, as a 
going concern, for a purchase consideration of R1,777 billion, which represents a 9% yield on the twelve month forward net income of the properties. This transaction is 
subject to due diligence and regulatory processes.

BASIS OF PREPARATION

The unaudited results for the six months ended 28 February 2019 have not been reviewed or reported on by the company's independent auditors, BDO South Africa Incorporated. 
These results have been prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34, Interim Financial Reporting, the SAICA Financial Reporting 
Guides issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council, JSE Listings 
Requirements and the requirements of the Companies Act of South Africa.

All amendments to standards that are applicable to Rebosis for its financial year beginning 1 September 2018 have been considered. Based on management's assessment, the 
amendments do not have a material impact on the group's condensed consolidated interim financial statements with the exception of IFRS 9. The impact of IFRS 9 has resulted 
in the restatement of certain items in the Statement of Financial Position.

The accounting policies are consistent with those applied in the previous consolidated annual financial statements except for the adoption of the new standard - IFRS 9 
Financial instruments. According to the new standard, Rebosis has applied the "credit loss" model for the measurement of financial assets, specifically to trade 
receivables. These financial results have been prepared under the supervision of the Chief Financial Officer, I King, (CA) SA.

The directors are not aware of any matters or circumstances arising subsequent to 28 February 2019 that require any additional disclosure or adjustment to the financial 
statements, other than as disclosed in this announcement.

CHANGE IN DIRECTORATE

There has been no changes in directors since the last reporting period.

PROSPECTS

The trading conditions will remain challenging for the remainder of this year. Rebosis will have a strong focus on operations with an accelerated focus on renewing the 
remaining office leases. The office portfolio has delivered a 5.3% net property income growth in the reporting period. Filling up the remaining vacancies at Forest Hill 
will continue to be an area of importance to the team. 

The main focus will be on the successful completion of the announced disposals and the disposal of the second tranche of the retail portfolio. This in turn will also serve 
to reduce the loan to value to below 40%.

The company incurred high levels of financing costs as a result of the high debt levels, this is expected to reduce significantly following the reduction in the expected 
loan to value level and should have a positive impact on the earnings.

The prospects statement is issued by the board and has not been reviewed or reported on by the company's external auditors.

By order of the Board

13 May 2019.

Corporate Information

Ordinary A share code:  
REA and ISIN: ZAE000240552

Ordinary B share code:  
REB and ISIN: ZAE000201687

JSE sector: Real Estate -  
Real Estate holdings and development

Listing date: 17 May 2011

Number of shares
A ordinary shares: 63 266 012 (2018: 63 266 012)
Ordinary shares: 696 844 874 (2018: 673 289 779)

Company registration number: 2010/003468/06
Country of incorporation: South Africa

Website: www.rebosis.co.za

DIRECTORS

ATM Mokgokong* (Chairperson)
SM Ngebulana (Chief Executive Officer)
RP Becker (Chief Investment Officer)
I King (Chief Financial Officer)
Z Kogo
WJ Odendaal*
NV Qangule*
TSM Seopa*
M Mdlolo*
F Froneman*

*Independent Non-executive

REGISTERED OFFICE AND COMPANY SECRETARY

2nd Floor, Roland Garros Building
The Campus
Corner Sloane and Main streets,
Bryanston,
2191

Private Bag x21
Bryanston
2021

Tel: 011 575 4835

BANKERS

First National Bank
(a division of FirstRand Bank Limited)
6th Floor, First Place
Corner Simmonds and Pritchard Streets
Johannesburg
2001

Box 1153, Johannesburg, 2000)

INDEPENDENT AUDITORS

BDO South Africa Incorporated
Wanderers Office Park
52 Corlett Drive, Illovo
Johannesburg
2196

(Private Bag X10046, Sandton, 2146)

TRANSFER SECRETARIES

Computershare Investor  
Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank Towers
2196

(PO Box 61051, Marshalltown, 2107)

SPONSOR

Nedbank Corporate and Investment Banking

LEGAL ADVISERS

Bowman Gilfillan
165 West Street
Sandton, 2146
(PO Box 785812, Sandton 2146)

Cliffe Dekker Hofmeyer Inc.
11 Buitengracht Street
Cape Town
8001
Box 695, Cape Town, 8000)

RELATED QUERIES

Mr RP Becker (Chief Investment Officer)
robb@rebosis.co.za


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