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Abridged Audited Consolidated Annual Financial Statements for the year ended 28 February 2017
FREEDOM PROPERTY FUND LIMITED
Incorporated in the Republic of South Africa
Registration number: 2012/129186/06
Share code: FDP
ISIN: ZAE000185260
(“Freedom” or “the Company”)
SHORT FORM ANNOUNCEMENT: ABRIDGED AUDITED CONSOLIDATED ANNUAL FINANCIAL
STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2017
The board of directors (“the Board”) of the Company is pleased to present the audited annual financial
results for the year ended 28 February 2017.
The audited financial results of the Group for the year ended 28 February 2017, as compared to the
year ended 29 February 2016 (comparative period), are set out below:
- Basic loss per share decreased from 1,56 cents to earnings of 1,01 cents;
- Headline loss per share decreased from 2,00 cents to 0,98 cents; and
- Revenue decreased by 36% from R38 474 to R24 579 million.
No dividends were declared or paid during the period under review or during the comparative period.
Qualified audit opinion:
The summarised consolidated results of the Group for the year ended 28 February 2017 have been
audited by the Group’s auditors, Moore Cape Town Inc. and their qualified audit report is available for
inspection at the Group’s registered office and from the company’s website. An extract from the audit
report is as follows:
“In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section
of our report, the consolidated Financial Statements present fairly, in all material respects, the
consolidated financial position of Freedom Property Fund as at 28 February 2017, and its consolidated
financial performance and its consolidated cash flows for the year then ended in accordance with the
International Financial Reporting Standards and the requirements of the Companies Act 71 of 2008 of
South Africa.
Basis for Qualified Opinion on consolidated Financial Statements and Unqualified Opinion on the
Separate Financial Statements
The Company acquired Ligitprops 184 (Pty) Ltd on 1 March 2014. The consolidated financial statements
are materially misstated as we were unable to obtain sufficient appropriate evidence on the values of
certain of the subsidiary’s material assets and liabilities at the acquisition date. Consequently, we are
unable to determine whether any adjustments to these amounts were necessary. This matter also
effected the 28 February 2017 consolidated Statement of Comprehensive Income as we are unable to
obtain sufficient appropriate audit evidence on the profit on disposal of investment in subsidiary on 31
May 2016. There is no effect on the separate financial statements.”
Key Audit Matter:
Valuation of investment properties (consolidated)
The Group holds commercial and residential investment properties, along with vacant land, to the
value of R 216 625 million at year-end, including the straight-lining accrual. The movement in these
properties’ fair value for the year amounts to R 23 938 million.
Investment property is measured at their fair values based on valuations obtained from external
valuators and the directors. The location, zoning, size, exposure, capitalisation rates and occupancy
rates are some of the crucial variables which were considered and applied in the valuation of
investment properties.
For commercial properties the directors and external valuators have used 3 methods namely, the Net
Income Capitalisation Method, the Discounted Cash Flow Method and the Comparable Sales Method
in determining the fair value.
For residential investment properties the directors and external valuators have used the Net Income
Capitalisation Method in the valuation of the properties.
For vacant land the directors and external valuators have used the Comparable Sales Method in the
valuation of the properties.
We consider the valuation of investment properties a matter of most significance to the current year’s
audit due to the significance of the estimates and judgements involved and the inherent sensitivity of
data whereby a percentage difference in individual yields could result in a material misstatement.
Reportable Irregularities:
Reportable irregularity Date of first Financial
report year
affected
Annual financial statements not issued within 6 months after 21/09/2017 2017-2019
year end – in respect of the 2017-2019 financial statements. and
04/10/2018
Interim financial statements not issued within 3 months after the 01/06/2017 2017-2019
interim period – in respect of the 2017-2019 financial and
statements. 02/07/2018
Trading in own shares – during the period 26 November 2014 21 January 2015 and
and 6 March 2015, the group traded in its own shares. The 2020 2016
group sold 6 229 361 shares and repurchased 2 669 262. These
shares were traded without the required authorisations and
some of the trades were executed during closed periods.
This short form announcement is the responsibility of the Board and is only a summary of the
abridged audited consolidated financial results for the year ended 28 February 2017 (“Full
Announcement”) which may be downloaded from:
https://senspdf.jse.co.za/documents/2020/jse/isse/fdp/Feb2017.pdf
The detailed audited consolidated financial results for the year ended 28 February 2017 inclusive of
the Independent Auditors’ report are available on the Company’s website:
http://www.freedomprop.co.za/wp-content/uploads/2020/01/Freedom-Consol-2017-FINAL.pdf
Any investment decisions by investors and/or shareholders should be based on consideration of the
Full Announcement at the link set out above.
The Full Announcement may also be viewed, at no cost, at the registered office of the Company and
the Johannesburg office of its Sponsor, during ordinary business hours, for a period of 30 calendar days
following the date of this announcement.
Registered office: KWV Building, 57 Main Street, Paarl, Cape Province.
Paarl
29 January 2020
Sponsor: Questco Corporate Advisory Proprietary Limited
First Floor, Yellowwood House, Ballywoods Office Park, 33 Ballyclare Drive, Bryanston.
Date: 29-01-2020 03:44:00
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