For the year ended 30 June 2022
The second edition of the SA REIT Association’s best practice recommendations was issued in November 2019, outlining the need to provide consistent presentation and disclosure of relevant ratios in the SA REIT sector. This ensures information and definitions are clearly presented, enhancing comparability and consistency across the sector.
| SA REIT funds from operations (SA REIT FFO) | 2022 Rm |
2021 Rm |
| Profit/(loss) attributable to the owners of the company | 7 937 | (497) |
|---|---|---|
| Adjusted for accounting/specific adjustments: | ||
| Adjustments to: | (2 637) | 5 824 |
| Fair value on investment property | (1 857) | 4 745 |
| Fair value on debt and equity instruments held at fair value through profit or loss | (1 109) | 584 |
| Depreciation and amortisation of intangible assets | 103 | 108 |
| Impairment of goodwill or the recognition of a bargain purchase gain | – | 30 |
| (Gains)/losses on the modification of financial instruments | (728) | 295 |
| Deferred tax movement recognised in profit or loss | 1 030 | 400 |
| Straight-lining operating lease adjustment | (164) | (322) |
| Transaction costs expensed in accounting for a business combination | 76 | 28 |
| Adjustments to dividends from equity interests held | 12 | (44) |
| Adjustments arising from investing activities: | (58) | (98) |
| (Gains)/losses on disposal of equipment | (12) | 24 |
| Development fees and profit earned | (46) | (122) |
| Foreign exchange and hedging items: | (2 806) | (2 014) |
| Fair value adjustments on derivative financial instruments employed solely for hedging purposes | (2 787) | (1 681) |
| Foreign exchange gains or losses relating to capital items – realised and unrealised | (19) | (333) |
| Other adjustments: | 2 862 | 1 438 |
| Adjustments made for equity-accounted entities | 479 | 1 206 |
| Non-controlling interests in respect of the above adjustments | (810) | (748) |
| Non-controlling interests in respect of the above adjustments – plus not distributable | 3 193 | 963 |
| Antecedent earnings adjustment | – | 17 |
| SA REIT FFO (Rm) | 5 298 | 4 653 |
| Number of shares outstanding at end of period (net of treasury shares) | 3 407 663 028 | 3 402 889 319 |
| SA REIT FFO per share (cents) | 155.5 | 136.8 |
| Interim SA REIT FFO per share (cents) | 77.4 | 65.9 |
| Final SA REIT FFO per share (cents) | 78.1 | 70.9 |
| Rm | Rm | |
| Company-specific adjustments to SA REIT FFO | 9 | 399 |
| (Decrease)/increase in staff incentive scheme cost | (23) | 28 |
| Trading profit and development fees earned | 90 | 122 |
| Profit on the sale of OneCart (Pty) Limited | 46 | – |
| Amortisation of tenant incentive add back (GOZ FFO) | 364 | 288 |
| Distributable income from GOZ retained (including NCI portion) | (446) | (157) |
| Distributable income from C&R retained (including NCI portion) | (150) | (139) |
| Over distribution/(distributable income from GHPH retained) (including NCI portion) | 2 | (8) |
| Distributable income from GSAH retained (including NCI portion) | (48) | – |
| Pre-acquisition profit GSAH | 3 | – |
| Tax on distributable income retained | 171 | 265 |
| Distributable income (Rm) | 5 307 | 5 052 |
| Distributable income per share (DIPS) (cents) | 155.6 | 148.1 |
| Interim DIPS (cents) | 76.9 | 73.1 |
| Final DIPS (cents) | 78.7 | 75.0 |
| SA REIT net asset value (SA REIT NAV) (Group) | 2022 Rm |
2021 Rm |
| Reported NAV attributable to the parent | 71 212 | 66 410 |
|---|---|---|
| Adjustments: | 2 597 | 2 700 |
| Dividend to be declared | (2 280) | (2 042) |
| Fair value of certain derivative financial instruments | (25) | 1 068 |
| Goodwill and intangible assets | (496) | (597) |
| Net deferred tax | 5 398 | 4 271 |
| SA REIT NAV | 73 809 | 69 110 |
| Shares outstanding | Number of shares |
Number of shares |
| Number of shares in issue at period end (net of treasury shares) | 3 407 663 028 | 3 402 889 319 |
|---|---|---|
| Diluted effect of share options granted to employees | 13 216 959 | 12 699 001 |
| Dilutive number of shares in issue | 3 420 879 987 | 3 415 588 320 |
| SA REIT NAV per share (R) | 21.58 | 20.23 |
| SA REIT cost-to-income ratio | 2022 Rm |
2021 Rm |
| Expenses | ||
| Operating expenses per IFRS income statement (includes municipal expenses) | 5 197 | 4 946 |
| Administrative expenses per IFRS income statement | 832 | 613 |
| Excluding: Depreciation expense in relation to property, plant and equipment of an administrative nature and amortisation expense in respect of intangible assets | ||
| Operating costs | 6 029 | 5 559 |
| Rental income | ||
| Contractual rental income per IFRS income statement (excluding straight-lining) | 12 884 | 12 804 |
| Utility and operating recoveries per IFRS income statement | 1 681 | 1 510 |
| Gross rental income | 14 565 | 14 314 |
| SA REIT cost-to-income ratio | 41.4% | 38.8% |
| SA REIT administrative cost-to-income ratio | Rm | Rm |
| Expenses | ||
| Administrative expenses as per IFRS income statement | 832 | 613 |
| Administrative costs | 832 | 613 |
| Rental income | ||
| Contractual rental income per IFRS income statement (excluding straight-lining) | 12 884 | 12 804 |
| Utility and operating recoveries per IFRS income statement | 1 681 | 1 510 |
| Gross rental income | 14 565 | 14 314 |
| SA REIT administrative cost-to-income ratio | 5.7% | 4.3% |
| SA REIT GLA vacancy rate | GLA m² | GLA m² |
| Gross lettable area of vacant space | 573 804 | 731 045 |
|---|---|---|
| Gross lettable area of total property portfolio | 6 727 564 | 7 089 573 |
| SA REIT GLA vacancy rate | 8.5% | 10.3% |
| Cost of debt | ZAR % |
AUD % |
EUR % |
USD % |
| 2022 | ||||
| Variable interest-rate borrowings | ||||
| Floating reference rate plus weighted average margin | 6.3 | – | – | 3.3 |
| Fixed interest-rate borrowings | ||||
| Weighted average fixed rate | 9.9 | – | – | 5.9 |
| Pre-adjusted weighted average cost of debt | 6.4 | – | – | 5.5 |
| Adjustments: | ||||
| Impact of interest rate derivatives | 1.4 | – | 0.7 | – |
| Impact of cross-currency interest rate swaps | 0.3 | 3.5 | 3.1 | (0.5) |
| Amortised transaction costs imputed in the effective interest rate | – | – | – | 0.2 |
| All-in weighted average cost of debt | 8.1 | 3.5 | 3.8 | 5.2 |
| Cost of debt | ZAR % |
AUD % |
EUR % |
USD % |
| 2021 | ||||
| Variable interest-rate borrowings | ||||
| Floating reference rate plus weighted average margin | 5.4 | – | – | – |
| Fixed interest-rate borrowings | ||||
| Weighted average fixed rate | 9.9 | – | – | 5.9 |
| Pre-adjusted weighted average cost of debt | 5.5 | – | – | 5.9 |
| Adjustments: | ||||
| Impact of interest rate derivatives | 2.0 | – | 1.4 | – |
| Impact of cross-currency interest rate swaps | 0.3 | 3.6 | 2.4 | (0.9) |
| Amortised transaction costs imputed in the effective interest rate | – | – | – | 0.2 |
| All-in weighted average cost of debt | 7.8 | 3.6 | 3.8 | 5.2 |
| SA REIT loan-to-value (Group) | 2022 Rm |
2021 Rm |
| Gross debt | 63 802 | 60 793 |
|---|---|---|
| Less: | ||
| Cash and cash equivalents | (2 841) | (2 622) |
| (Less)/add: | ||
| Derivative financial instruments | (1 675) | 1 181 |
| Net debt | 59 286 | 59 352 |
| Total assets per statement of financial position | 164 729 | 154 455 |
| Less: | ||
| Cash and cash equivalents | (2 841) | (2 622) |
| Derivative financial assets | (2 492) | (814) |
| Goodwill and intangible assets | (496) | (597) |
| Trade and other receivables | (2 321) | (2 087) |
| Carrying amount of property-related assets | 156 579 | 148 335 |
| SA REIT loan-to-value (SA REIT LTV) | 37.9% | 40.0% |
| Net initial yield | Rm | Rm |
| Investment property | 135 578 | 128 242 |
|---|---|---|
| Less: | ||
| Properties under development | (820) | (697) |
| Grossed up property value | 134 758 | 127 545 |
| Property income | ||
| Contractual cash rentals | 11 630 | 10 808 |
| Less: | ||
| Notional rental for rent-free periods, discounted rentals, stepped rentals and lease incentives | (1 391) | (1 562) |
| Less: | ||
| Non-recoverable property expenses | (172) | (262) |
| Annualised net rental | 10 067 | 8 984 |
| Net initial yield | 7.5% | 7.0% |