Censure imposed by the JSE on Rebosis Property Fund Limited
GEN – General – Rebosis Property Fund Limited
Censure imposed by the JSE on Rebosis Property Fund Limited (“Company”)
The JSE hereby informs stakeholders of the following findings in respect of the Company:
1. On 11 November 2019, the Company published preliminary results for the financial year ended 31
August 2019 titled ‘Unaudited Results’, that were not reviewed at the time, due to differences between
the Company and its auditors in the determination of Rebosis’ investment property valuation for the
financial period concerned. In terms of paragraph 3.22(b) of the JSE Listings Requirements, annual
financial information published by an issuer in advance of being required to do so must, at a minimum
be reviewed by the issuer’s auditor.
2. On 13 December 2019, the Company published its reviewed results for the year ended 31 August 2019,
which contained an adjustment to the property valuations, and included a qualified review opinion by
the auditors in respect of the valuations. As a result of the auditor’s review, the market at large became
aware of the significance and impact of the qualification on the 2019 annual financial statements which
they were not previously made aware of in the 11 November 2019 preliminary results announcement.
3. The subsequent adjustment to the fair valuation in the reviewed financial statements published on 13
December 2019 amounted to approximately R900 million and impacted the Company’s 2019 property
portfolio, which reduced to R15.6 billion. Further, it decreased the Company’s 2019 net asset value
per “B” share by 15% as at 13 December 2019 (on a net basis, after taking into account debt).
4. The publication of annual financial statements, whether preliminary, provisional or final, is a
fundamental disclosure requirement upon which investors rely to make informed investment
decisions. For this reason, the JSE Listings Requirements are very clear and deliberate that such
information requires a level of assurance from external auditors. In the case of preliminary annual
financial statements, they are required, at a minimum, to be reviewed by external auditors. The
publication of annual financial statements with the minimum required level of assurance from external
auditors contribute to an orderly market place and promotes investor confidence. Had the Company
complied with the Listings Requirements, it would have published annual financial results to the
market that contained the requisite level of assurance and information pertaining to the qualification
through a review report, only when the Company was in a position to do so and not on 11 November
5. Accordingly, the JSE found the Company to be in breach of paragraph 3.22(b) of the Listings
Requirements. The JSE finds it unacceptable that the Company published annual financial results that
were not at a minimum reviewed and subject to a level of assurance.
6. The JSE has therefore decided to impose this public censure against the Company in relation to the
above-mentioned breach of the Listings Requirements.
2 February 2021
Date: 02-02-2021 07:05:00
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