Press release audited results FY2011
7 November 2011 – Rebosis Property Fund, the first black-managed and substantially black-held property fund to have listed on the JSE Limited earlier this year, today released a robust set of maiden financial results.
As a result of the listing on 17 May this year, where R1,66 billion of fresh capital was raised, there were significant restructurings of the property portfolio, gearing against the portfolio, asset management arrangements and the capital structure. For this reason, only the trading period for the 3,5 months since listing to the financial year-end on 31 August 2011 are of relevance to Rebosis linked unit holders.
Headline profit per linked unit of 27,94 cents was reported and a maiden distribution of 22,25 cents per linked unit was declared for the 3,5 month period, payable on Monday, 28 November 2011.
The distribution would have been 22.95 cents per linked unit (cpu), but at 22.25 cpu it is 2,8% below the pre-listing forecast of 22,91 cpu for the same period, mainly as a result of the delay in the transfer of Bloed Street Mall.
Rebosis Chief Executive, Sisa Ngebulana commented: “Our fundamentals for strong distribution growth are solid. 40% of the portfolio is underpinned by secured long-term government leases, whilst the exposure to early stage regional shopping centres that are already trading well with a high growth rate, provides for significant upside potential.
“Occupancy across the portfolio is currently 97%, considerably above the sector average and mainly as a result of long-term single tenanted office buildings. Average turnover growth at Hemingways Mall and Mdantsane City is up 19% well above national average retail sales growth of 7%.”
The transfer of Bloed Street Mall is expected to be concluded by end November 2011 and will increase the Group’s gearing ratio from 33,9% to 39.8%. The average cost of borrowings will
however decrease from 9,26% to 8,9% due to the payment of Bloed Street Mall from the Group’s floating facility that has lesser cost of borrowing.
Commenting on the Group’s prospects, Ngebulana said that Rebosis was well positioned for future growth. “We remain confident in the sustainability of government leases and welcome the increased transparency in this regard. Our empowerment credentials enable us to capitalise on opportunities for the acquisition of government tenanted buildings.
The shopping centres are trading well and are still maturing with net income guarantees in place to May 2012. In addition to pursuing yield enhancing acquisition opportunities, we have the right of first refusal on Billion Group’s R7bn development pipeline with additional 370 000 m2 gross lettable area.
The Group’s target distribution range for the year ending 31 August 2012 is between 85.0 cents and 89.3 cents per linked unit.