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REBOSIS PROPERTY FUND LIMITED - Unaudited results for the six months ended 28 February 2021
2021/05/11 09:55:00Download PDF Stock report
Unaudited results for the six months ended 28 February 2021 REBOSIS PROPERTY FUND LIMITED (Rebosis or the company or group or the fund) (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 ISIN Rebosis A share: ZAE000240552 ISIN Rebosis Ordinary share: ZAE000201687 Unaudited RESULTS for the six months ended 28 February 2021 Highlights Net Property Income Growth (like for like)# (12.8%) All expired debt renewed R6.4bn Total Assets R13.7bn Portfolio Vacancy 11.2% Portfolio WALE 2.7 years Tenant retention (GLA) 96% # Like for like before bad debt, COVID-19 Reprieves and disposals. These adjusted numbers are the responsibility of the directors, have been prepared for illustrative purposes only and because of their nature may not fairly present Rebosis' financial position. Group Unaudited Reviewed for the six for the six months ended months ended 28 February 2021 29 February 2020 Restated Revenue (R'000) 849 196 937 869 Distributable income per A Share (cents) 146.36 139.39 Distributable loss per B Share (cents) (20.53) (9.53) Basic and diluted earnings per A Share (cents) 146.36 139.39 Basic and diluted (loss)/earnings per B Share (cents) (23.05) 61.28 Basic and diluted headline earnings per A Share (cents) 146.36 139.39 Basic and diluted headline earnings per B Share (cents) (20.72) (12.84) Net asset value per A Share (R) 0.6 0.77 Net asset value per B Share (R) 4.84 5.51 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 35 buildings. Its retail portfolio has a mix of flagship shopping centres including Port Elizabeth (Baywest Mall) and East London (Hemingways Mall). FINANCIAL RESULTS Distributable income decreased from R22 million in the prior period to a loss of R71 million. The decrease is due to the recognition of a deferred payment liability amounting to R175 million as well as interest on the land previously acquired from Billion Group (Pty) Ltd in the income statement. Interest paid on secured loans dropped in the current year due to the impact of interest rate cuts. The fund continues to provide Covid-19 relief to its tenants. Concessions amounting to R14.3 million have been provided in the period ended 28 February 2021. Investment properties including non-current assets held for sale are reflected at a book value of R13.1 billion. Formal valuations will be performed at year-end according to the fund's policy as current valuations are still within the 12 month cycle. During the period, proceeds from the disposal of the Medscheme building were used to settle Standard Bank facilities. DECLARATION AND PAYMENT OF CASH DIVIDEND The Rebosis Board has deferred the decision to declare an interim dividend for the six months ended 28 February 2021 (29 February 2020 :Nil) to the financial year end. PROSPECTS The company has positively engaged with local and offshore institutions in a transaction to improve the company's loan to value, interest cover ratio and optimise the balance sheet in realising value for all stakeholders. The proposed transaction would be subject to due diligence and the prerequisite regulatory approvals. The company continues to trade under cautionary due to the proposed transaction. The significant reduction in interest rates during the 2020 year will continue to have a positive impact on the fund's performance. The defensive nature of the office portfolio is expected to mitigate the risk on the retail portfolio. Whilst overall collections have been robust over the reporting period, the fund continues to assist small tenants especially in the entertainment, food and beverage sectors through rental concessions. The aggregated rental concessions of R14.3 million granted over the reporting period were less than expected. We expect the rental concessions to further decrease unless a third Covid-19 wave occurs which may require further lockdowns. Management's focus will be on concluding the pending transaction while simultaneously achieving lease renewals and vacancy fill ups. SHORT-FORM ANNOUNCEMENT This Short-form Announcement has been prepared by Ms A.L. Magwentshu CA (SA), in her capacity as Chief Financial Officer of the company, and is the responsibility of the directors of Rebosis. The Full Announcement ('Full Announcement') was released on SENS on 11 May 2021 and can be found on the company's website at http://www.rebosis.co.za/#investor-relations. The Full Announcement is also available on the JSE's website at https://senspdf.jse.co.za/documents/2021/jse/isse/REB/ie2021.pdf. The information contained in this Short-form Announcement is only a summary of the information in the Full Announcement and does not contain full or complete details. Any investment decision by investors and/or shareholders should be based on consideration of the Full Announcement published on JSE website and on the company's website as a whole. A copy of the Full Announcement is available for inspection, and may be requested, by investors and/or shareholders at the company's registered office, Office 95 & 95A, Forest Hill City, 6922 Forest Beech Street, Monavoni Centurion, 0157, Attention: Asathi Magwentshu, and at the offices of the Sponsor (Nedbank Corporate and Investment Banking, a division of Nedbank Limited, Nedbank 135 Rivonia Campus, 135 Rivonia Road, Sandown, Sandton, 2196, Attention: D Thiele) at no charge, during business hours from 11 May 2021 to 31 May 2021. The information contained in this Short-form Announcement has not been reviewed or reported on by the company's auditors. By order of the Board 11 May 2021 Sponsor Nedbank Corporate and Investment Banking a division of Nedbank Limited Date: 11-05-2021 09:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.