for the six months ended 31 December 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 will ensure information and definitions are clearly presented, enhancing comparability and consistency across the sector.
| SA REIT Funds from Operations (SA REIT FFO) | Six months 31 December 2022 Rm |
Six months 31 December 2021 Rm |
12 months 30 June 2022 Rm |
| Profit attributable to the owners of the company | 1 866 | 3 650 | 7 937 |
|---|---|---|---|
| Adjusted for: | |||
| Accounting/specific adjustments | 1 422 | (2 755) | (2 637) |
| Fair value adjustments to: | |||
| Investment property | 1 562 | (2 745) | (1 857) |
| Debt and equity instruments held at fair value through profit or loss | (118) | (1 178) | (1 109) |
| Depreciation and amortisation of intangible assets | 41 | 50 | 103 |
| Asset impairments (excluding goodwill) and reversals of impairment | – | 9 | – |
| Losses on the modification of financial instruments | – | (43) | (728) |
| Deferred tax movement recognised in profit or loss | (277) | 1 087 | 1 030 |
| Straight-lining operating lease adjustment | 162 | 45 | (164) |
| Transaction costs expensed in accounting for a business combination | (14) | 39 | 76 |
| Adjustments to dividends from equity interests held | 10 | (19) | 12 |
| Adjustments arising from investing activities: | (115) | (62) | (58) |
| Gains on disposal of capital items | – | (19) | (12) |
| Development fees and profit earned | (115) | (43) | (46) |
| Foreign exchange and hedging items: | 15 | (298) | (2 806) |
| Fair value adjustments on derivative financial instruments employed solely for hedging purposes | (51) | (380) | (2 787) |
| Foreign exchange gains/(losses) relating to capital items – realised and unrealised | 66 | 82 | (19) |
| Other adjustments: | (492) | 2 100 | 2 862 |
| Adjustments made for equity-accounted entities | 316 | 420 | 479 |
| Dividends declared to non-controlling interests | (501) | (409) | (810) |
| Non-controlling interests in respect of the above adjustments – plus not distributable | (367) | 2 089 | 3 193 |
| Antecedent earnings adjustment (GHPH and GSAH) | 20 | – | – |
| SA REIT FFO (Rm) | 2 696 | 2 635 | 5 298 |
| Number of shares outstanding at end of period (net of treasury shares) | 3 411 622 222 | 3 406 439 781 | 3 407 663 028 |
| SA REIT FFO per share (cents) | 79.0 | 77.4 | 155.5 |
| Interim SA REIT FFO per share (cents) | 79.0 | 77.4 | 77.4 |
| Final SA REIT FFO per share (cents) | 78.1 | ||
| Rm | Rm | Rm | |
| Company-specific adjustments to SA REIT FFO | (34) | (12) | 9 |
|---|---|---|---|
| Decrease/(increase) in staff incentive scheme cost | 5 | (13) | (23) |
| Trading profits and development fees earned | 64 | 47 | 90 |
| Profit on disposal of OneCart (Pty) Limited | – | – | 46 |
| Profit on disposal of convertible shares in GHPH | 26 | – | – |
| Pre-acquisition profits of GSAH | – | 9 | 3 |
| Amortisation of tenant incentive add back (GOZ FFO) | 232 | 170 | 364 |
| Distributable income from GOZ retained (including NCI's portion) | (431) | (269) | (446) |
| Distributable income from C&R retained (including NCI's portion) | (4) | (67) | (150) |
| Adjustments to dividends from GHPH | (22) | (8) | (48) |
| Adjustments to dividends from GSAH | (11) | – | 2 |
| Taxation paid on distributable income retained | 107 | 119 | 171 |
| Distributable income (Rm) | 2 662 | 2 623 | 5 307 |
| Distributable income per share (DIPS) (cents) | 77.9 | 76.9 | 155.6 |
| First half-year (cents) | 77.9 | 76.9 | 76.9 |
| Second half-year (cents) | 78.7 | ||
| SA REIT net asset value (SA REIT NAV) (Group) | Six months 31 December 2022 Rm |
Six months 31 December 2021 Rm |
12 months 30 June 2022 Rm |
| Reported NAV attributable to the parent | 71 748 | 69 801 | 71 212 |
|---|---|---|---|
| Adjustments: | 654 | 3 652 | 2 597 |
| Dividend to be declared | (2 194) | (2 095) | (2 280) |
| Fair value of certain derivative financial instruments | (1 253) | 849 | (25) |
| Goodwill and intangible assets | (1 058) | (548) | (496) |
| Deferred tax | 5 159 | 5 446 | 5 398 |
| SA REIT NAV | 72 402 | 73 453 | 73 809 |
| Shares outstanding | Number of shares |
Number of shares |
Number of shares |
| Number of shares in issue at period end (net of treasury shares) | 3 411 622 222 | 3 406 439 781 | 3 407 663 028 |
|---|---|---|---|
| Diluted number of share options granted to employees | 20 147 746 | 12 497 449 | 13 216 959 |
| Dilutive effect of share options granted to employees | 3 431 769 968 | 3 418 937 230 | 3 420 879 987 |
| SA REIT NAV per share (R) | 21.10 | 21.48 | 21.58 |
| SA REIT cost-to-income ratio | Rm | Rm | Rm |
| Expenses | |||
| Operating expenses per IFRS income statement (includes municipal expenses) | 2 850 | 2 609 | 5 197 |
| Administrative expenses per IFRS income statement | 452 | 397 | 832 |
| Excluding: Depreciation expense in relation to property, plant and equipment of an administrative nature and amortisation expense in respect of intangible assets | |||
| Operating costs | 3 302 | 3 006 | 6 029 |
| Rental income | |||
| Contractual rental income per IFRS income statement (excluding straight-lining) | 7 010 | 6 421 | 12 884 |
| Utility and operating recoveries per IFRS income statement | 901 | 872 | 1 681 |
| Gross rental income | 7 911 | 7 293 | 14 565 |
| SA REIT cost-to-income ratio | 41.7% | 41.2% | 41.4% |
| SA REIT administrative cost-to-income ratio | Rm | Rm | Rm |
| Expenses | |||
| Administrative expenses as per IFRS income statement | 452 | 397 | 832 |
| Administrative costs | 452 | 397 | 832 |
| Rental income | |||
| Contractual rental income per IFRS income statement (excluding straight-lining) | 7 010 | 6 421 | 12 884 |
| Utility and operating recoveries per IFRS income statement | 901 | 872 | 1 681 |
| Gross rental income | 7 911 | 7 293 | 14 565 |
| SA REIT administrative cost-to-income ratio | 5.7% | 5.4% | 5.7% |
| SA REIT GLA vacancy rate | GLA m2 | GLA m2 | GLA m2 |
| Gross lettable area of vacant space | 776 736 | 758 864 | 763 751 |
|---|---|---|---|
| Gross lettable area of total property portfolio | 8 086 298 | 8 428 982 | 8 223 473 |
| SA REIT GLA vacancy rate | 9.6% | 9.0% | 9.3% |
| Cost of debt | ZAR % |
AUD % |
EUR % |
USD % |
| 31 December 2022 | ||||
| Variable interest-rate borrowings | ||||
| Floating reference rate plus weighted average margin | 8.5 | – | – | 6.1 |
| Fixed interest-rate borrowings | ||||
| Weighted average fixed rate | 9.9 | – | – | 5.9 |
| Pre-adjusted weighted average cost of debt | 8.5 | – | – | 5.9 |
| Adjustments: | ||||
| Impact of interest-rate derivatives | 0.2 | – | (0.4) | – |
| Impact of cross-currency interest-rate swaps | 0.2 | 3.5 | 3.5 | (0.6) |
| Amortised transaction costs imputed in the effective interest rate | – | – | – | 0.2 |
| All-in weighted average cost of debt | 8.9 | 3.5 | 3.1 | 5.5 |
| Cost of debt | ZAR % |
AUD % |
EUR % |
USD % |
| 31 December 2021 | ||||
| Variable interest-rate borrowings | ||||
| Floating reference rate plus weighted average margin | 5.5 | – | – | 2.0 |
| Fixed interest-rate borrowings | ||||
| Weighted average fixed rate | 9.9 | – | – | 5.9 |
| Pre-adjusted weighted average cost of debt | 5.6 | – | – | 5.4 |
| Adjustments: | ||||
| Impact of interest-rate derivatives | 1.7 | – | 1.0 | – |
| Impact of cross-currency interest-rate swaps | 0.3 | 3.5 | 2.9 | (0.4) |
| Amortised transaction costs imputed in the effective interest rate | – | – | – | 0.2 |
| All-in weighted average cost of debt | 7.6 | 3.5 | 3.9 | 5.2 |
| Cost of debt | ZAR % |
AUD % |
EUR % |
USD % |
| 30 June 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 |
| SA REIT loan-to-value (Group) | 31 December 2022 Rm |
31 December 2021 Rm |
30 June 2022 Rm |
| Gross debt | 66 940 | 64 861 | 63 802 |
|---|---|---|---|
| (Less)/add: | |||
| Cash and cash equivalents | (3 354) | (2 485) | (2 841) |
| Add: | |||
| Derivative financial instruments | (1 765) | 849 | (1 675) |
| Net debt | 61 821 | 63 225 | 59 286 |
| Total assets per statement of financial position | 168 167 | 168 177 | 164 729 |
| Less: | |||
| Cash and cash equivalents | (3 354) | (2 485) | (2 841) |
| Derivative financial assets | (2 563) | (1 177) | (2 492) |
| Goodwill and intangible assets | (1 058) | (548) | (496) |
| Trade and other receivables | (1 733) | (2 710) | (2 321) |
| Carrying amount of property-related assets | 159 459 | 161 257 | 156 579 |
| SA REIT loan-to-value (SA REIT LTV) | 38.8% | 39.2% | 37.9% |