Rebosis Property Fund - A Shares (JSE:REA) News - Abridged audited results for the year ended 31 August 2021

REBOSIS PROPERTY FUND LIMITED
(Rebosis or the company or the 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


- Expired debt renewed                        98%

- Achieved milestone disposal (Announced)     R6.3 billion
- Maintained portfolio valuation growth       0.3%

- New vacancy letting                         18 074 m2
- Rental collections rate (including arrears) 103.9%

- Covid 19 rental relief                      R23 million

ABRIDGED AUDITED RESULTS For the year ended 31 August 2021

INTRODUCTION


Further to the reviewed results for the year ended 31 August 2021 ("Reviewed Results")
released on SENS on 2 December 2021, the company's audited annual results for
the year ended 31 August 2021 ("Audited Results") contain changes to the Reviewed Results,
which has necessitated the release of these abridged Audited Results.


FINANCIAL RESULTS


Net property income decreased by 10% when compared on a like for like basis to the prior year.
This is as a result of reversions on the portfolio, as well as increase in rates assessments.
The distributable income before tax excluding once off items (capitalised interest and operating
expenses on deferred payment liability) is R83 million.

The higher distributable income is as a result of a decrease in the head office costs of the
group to R151 million (2020: R175 million) and the decrease in finance costs relating to bank
facilities to R602 million (2020: R828 million), due to the repo rate cuts and the repayment of
facilities using the proceeds from the Medscheme sale.

The Board deemed it prudent to deleverage the fund and has therefore resolved to not declare a
full year dividend for the year ended 31 August 2021 (31 August 2020: Nil).

The retail and commercial property portfolio was independently valued at year end, taking into
account COVID-19 considerations. During the period, proceeds from the disposal of Medscheme were
used to settle Standard Bank facilities to the value of R89.1 million.

The fair value of the Rebosis Property Portfolio as at 31 August 2021 amounted to R13.1 billion
(0.3% growth year on year, excluding the Medscheme building disposal). This is mainly attributable
to successful government lease renewals completed, and the continued strong covenant tenant profile
in the retail portfolio with long term lease profile.


                                                                        Group

                                                             Audited for      Audited for
                                                          the year ended   the year ended
                                                          31 August 2021   31 August 2020

                                                                    R000             R000


Revenue (R'000)                                                1 666 660        1 704 854

Distributable income per A Share (cents)                          292.72           278.78

Distributable income per B Share (cents) *                             -                -

Basic and diluted earnings per A Share (cents)                    292.72           278.78

Basic and diluted loss per B Share (cents)                        (68.39)           (9.67)

Basic and diluted headline earnings per A Share (cents)           292.72           278.78

Basic and diluted headline loss per B Share (cents)               (36.06)          (47.94)

Net asset value per A Share (R)                                     0.75             1.15

Net asset value per B Share (R)                                     4.51             4.89

* The dashes represent negative amounts.

Significant changes from reviewed results to audited results

The following table highlights the changes between the Reviewed Results and the
Audited Results:

Consolidated statements of cash flows for the year ended 31 August 2021

                                                                      2021
                                                 
                                                        Audited     Reviewed      Changes
                                                Notes     R'000        R'000        R'000

Cash flows from operating activities
Cash generated by operations                            951 213      956 523       (5 311)
Finance income                                            1 059        1 059            -
Finance costs                                       1  (720 275)    (602 187)    (118 088)
Interest on land                                    2    (3 000)     (10 440)       7 440
Income tax paid                                         (26 212)     (25 998)        (213)
Net cash inflow from operating activities               202 785      318 957     (116 172)

Cash flow from investing activities
Acquisition of property, plant and equipment             (1 122)      (1 194)          71
Capital expenditure, tenant installations
and lease commissions                                   (49 734)     (51 279)       1 545
Proceeds from disposal of investment property            89 100       89 100            -
Repayment of land on loan                               (42 000)     (45 000)       3 000
Net cash (outflow)/inflow
from investing activities                                (3 756)      (8 373)       4 616

Cash flow from financing activities
Proceeds from interest-bearing borrowings           4    21 000            -       21 000
Repayment of interest-bearing borrowings                (99 100)     (99 100)           -
Repayment of deferred payment liability             2   (54 140)     (62 000)       7 860
Payment on derivative instruments                   3         -      (82 695)      82 695
Net cash outflow from financing activities             (132 240)    (243 795)     111 555

Net increase/(decrease) in cash
and cash equivalents                                     66 789       66 789            -
Cash and cash equivalents at the beginning
of the year                                              59 233       59 233            -
Cash and cash equivalents at the end of the year        126 022      126 022            -

The significant changes to the Reviewed Results relate primarily to classification differences in
the Cash Flow Statement:

1. This movement is the aggregate of:
   -  R21 million restructuring fees were excluded from the finance costs. It has been included
      in Finance costs under the Cash flow from operating activities.
   -  Items 2. and 3. below.
2. R15 million relating to interest on the land transaction and the deferred payment liability was
   restated to reflect the actual cash flow movement.
3. An interest payment reclassification of R83 million relating to derivatives and interest swaps
   previously disclosed as Cash flow from financing activities. This has now been correctly reflected
   as Finance costs under Cash Flows from operating activities.
4. A renewal loan of R21 million was not separately disclosed. This has now been reflected separately
   under the Cash flow from financing activities.

Condensed statement of profit or loss and other comprehensive income

An amount of R5 million was reclassified from changes in fair values and impairments to operating
expenses-normal.




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 the JSE's website on or before
7 January 2022 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/2022/jse/isse/REB/AF2021.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 the JSE's
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 a 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.

The information contained in this Short-form Announcement has not been reviewed or reported on by
the company's auditors.

The full announcement has been audited by the company's auditors, BDO South Africa Incorporated,
their unqualified audit opinion is available on the company's website at
http://www.rebosis.co.za/#investor-relations.

The audit opinion contains a material uncertainty that may cast significant doubt on the group's
ability to continue as a going concern. The audit opinion has not been modified as a result of the
material uncertainty.

By order of the Board

7 January 2022

Availability of integrated annual report

Rebosis shareholders are advised that the 2021 Integrated Annual Report, incorporating the annual
financial statements for the year ended 31 August 2021, and notice of annual general meeting, is available
on the company's website, http://www.rebosis.co.za, and shareholders wishing to receive a printed copy of
the 2021 Integrated Annual Report can email their request to the company secretary,
Joel Naidoo at joel@motif.co.za.

Notice of annual general meeting

The notice of annual general meeting ("AGM") has been distributed to shareholders today and the
annual general meeting will be held at the offices of the company at Office 95 and 95A, Forest Hill City, 
6922 Forest Beech Street, Monavoni, Centurion, 0157 and via electronic participation at 10h00 on Tuesday, 
31 May 2022 to transact the business as stated in the notice of the AGM forming part of the Integrated Report.

The salient dates and times of the AGM are as follows:
Record date to receive the notice of AGM                                            Friday, 31 December 2021
Notice of AGM distributed to shareholders                                           Friday, 7 January 2022
Last day to trade in order to be eligible to participate in and vote at the AGM     Tuesday, 17 May 2022
Record date for voting purposes ("voting record date")                              Friday, 20 May 2022
Last day to lodge forms of proxy, for administrative purposes, by 10h00 on *        Friday, 27 May 2022
AGM held at 10h00 on                                                                Tuesday, 31 May 2022
Results of AGM released on the Stock Exchange News Service on or about              Tuesday, 31 May 2022

* Shareholders will at any time prior to the commencement of voting on the resolutions at the AGM be
  entitled to lodge the form of proxy in respect of the AGM, in accordance with the instructions therein,
  with the Chairperson of the AGM.

Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited.

Date: 07-01-2022 04:01:00
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