03 Dec 2020 - 8 min read

Results for the year ended 31 August 2020

Results for the year ended 31 August 2020

(Rebosis or the company 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

for the year ended 31 August 2020

Asset disposals                              R516m
Net Property Income growth#                  (7.6%)
Total Assets                              R13.7 bn
Vacancy**                                     9.1%
Total GLA Renewed                         43 047m2
Portfolio WALE                           2.8 years

# Like for like before bad debt, COVID-19 Reprieves and disposals.
**6.4% excl. NBC and 373 Pretorius street under conversion

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.


                                                  Reviewed for the   Audited for the 

                                                        year ended        year ended

                                                         31-Aug-20         31-Aug-19


Revenue (R'000)                                          1 704 854         1 842 144

Distributable income per A Share (cents)                    278.78            265.50 

Distributable income per B Share (cents)                         -              9.51 

Basic and diluted earnings per A Share (cents)              278.78            265.50 

Basic and diluted earnings per B Share (cents)               (9.67)          (972.14)

Basic and diluted headline earnings per A Share (cents)     278.78            265.50 

Basic and diluted headline earnings per B Share (cents)     (47.94)          (361.52)

Net asset value per A Share (R)                               1.15             13.65

Net asset value per B Share (R)                               4.89              3.60


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 36 buildings. Its retail portfolio has a mix of shopping centres including 

Baywest Mall (Port Elizabeth) and Forest Hill City (Centurion).


Distributable income before tax is R62 million excluding capitalised interest on deferred payment liability of R23 

million and tax. Due to the company not declaring distributions in the current financial year, the tax expense is 

R44 million for the current year and a prior year tax adjustment of  R30 million. This lower distributable income 

figure has been impacted by Covid-19 concessions on the retail portfolio of R148 million including bad debt write-

offs and changes in the expected credit loss allowances. Finance costs including debt structuring fees amortised 

costs decreased by R131 million mainly due to the repayment of facilities using proceeds from the sale of Mdantsane 

Shopping Centre as well as the repo rate cuts.

The Board deemed it prudent to deleverage the fund and has therefore resolved to not declare a full year dividend 

for the year ending 31 August 2020.

The retail property portfolio was independently valued at year end while the commercial property portfolio was 

independently valued at the interim reporting period, taking into account COVID-19 considerations. During the 

period, proceeds from the disposal of Mdantsane Shopping Centre were used to settle Nedbank facilities to the value 

of R491 million.

Detailed commentary on investment property changes

-  The fund reported a fair value of R15.601 billion at 31 August 2019.

-  Subsequently investment property carrying value at 31 August 2019 was restated in order to address the 2019 

   qualified audit opinion.

-  This resulted in an adjustment of R2.318 billion to the carrying value of investment property at 31 August 2019 

   to R13.283 billion (R12.767 billion excluding Mdantsane City that was transferred in December 2019).

-  Given the restatement of our valuations to conservative valuations at  31 August 2019, we have not had further 

   devaluations of our assets in the current financial year despite COVID-19 impact.

-  The total carrying value of investment property in the current financial year at 31 August 2020 is R13.160 

   billion, compared to R12.767 billion stated above. This has resulted in an increase in fair value of R391 million in 

   the current financial year to investment property, largely as a result of a number of commercial office lease 

   renewals which changed the discount and cap rates.

-  The fair value adjustment to the restated carrying value resulted in the loan to value being restated to 75.7% 

   for 31 August 2019, with an improvement of the loan to value in the current financial year at 31 August 2020 to 

   72.4% as a result of the Mdantsane City disposal and positive valuations.

Quadrant Properties, led by Mr. Peter Parfitt, was responsible for the valuation of the retail portfolio and the 

office and industrial properties were valued by CBRE, led by Mr Carlo Geldenhuys. Both valuers are registered 

valuers in terms of Section 19 of the Property Valuers Professional Act (Act No 47 of 2000). The valuers work 

independently of each other and their valuations are combined to arrive at the value of the full portfolio.

The significant inputs and assumptions in respect of the valuation process are developed in close consultation with 

management. The valuation process and fair value changes are reviewed by the audit committee and the board of 

directors at each reporting date. The directors confirm that there have been no material changes to the assumptions 

applied by the registered valuers.

The company is engaged in arbitration with regards to a possible amount owing to the Billion Group relating to the 

original purchase of the Forest Hill and Baywest properties.  It was agreed that an adjustment account would be kept 

and reconciled between the entities.  These amounts are not recognised in the statement of financial position as no 

reliable estimate of these liabilities can be made. In the event that the Group is found to be liable, the 

independent directors are of the opinion that the amount is not material.


The Company had established a Covid-19 Committee to deal with the pandemic in early March. A five-tier response 

program was developed based on the severity of the level of infections. The plan focuses on our staff, our tenants 

and our customers. This enabled us to react swiftly to the actions taken by Government and ensure that we complied 

with all the regulations. The lockdown at level 5 from 26 March to 30 April did not materially impact our Commercial 

property collections however has severely impacted our Retail tenants.

As only essential services tenants could trade, retail collections in April were 39%. From 1 May when the country 

moved to level 4 and additional stores could trade, collections increased to 50%. The collection rate for June under 

level 3 increased to 78%. Our collection rate in August had improved to 95%. The company negotiated concessions with 

tenants during the period of the pandemic. The impact of the concessions was R148 million including bad debt write-

offs and changes in the expected credit loss allowances. The outcome of the negotiations was recognised in the 

results. The company is pursuing an insurance claim for these losses however insurers are yet to respond to the 

claim. The longterm impact of the pandemic is still uncertain and is being closely monitored.


The Rebosis Board has resolved not to declare a dividend for the financial year-ended 31 August 2020. In terms of 

the Companies Act the board is required to perform the solvency and liquidity test when considering payment of a 

distribution. This test was performed and based on management's assessment the company is currently solvent but not 

liquid and therefore unable to make payment.


The interest rates decrease has had a material positive impact on the fund given the debt levels, with the unhedged 

and expiring hedged portion of debt at 72% in H2 (2020). This will continue to lead towards a much improved interest 

cover ratio and better returns for shareholders.

We remain confident on the office portfolio given its defensive nature and this will mitigate the risk from the 

retail portfolio. The Covid 19 negative impact has affected collections from impacted retailers on our retail 

portfolio, with 73%, 78%, 88% and 96% overall collection rates in April, May, June and August respectively, We have 

had higher collection rates for the months September (96%) and October (104%) and have seen higher recoveries for 

food and beverage services and the entertainment sectors than anticipated.

Our objective will be to continue to assist the small businesses to ensure continuity into the future through 

sensible rent concessions. The lack of growth in the economy, now exacerbated by the Covid 19 impact, will continue 

to negatively affect the retail environment, more-so the weak currency that implies higher input cost to retailers 

and lesser margins on products, leading to a squeeze on landlord rentals. Our focus will be on achieving good lease 

renewals, vacancy fill ups that are more informed by innovative repositioning of the offerings in our retail centres 

in line with global trends.

We will continue deleveraging our balance sheet in an endeavour to achieve an optimal capital structure through 

asset disposals at good value with some imminent transactions in progress. Furthermore, in an endeavour to realise 

shareholder value and continued success of the business, the Board continues to assessing various approaches from 

the market.


This Short-form Announcement has been prepared by Ms A.L. Magwentshu CA (SA), in her capacity as Interim 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 3 December 2020 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  


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 SENS 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  4 December 2020 to 21 December 2020.

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


The Full Announcement has been reviewed by the company's auditors and their unqualified review conclusion is 

available on the company's website at  http://www.rebosis.co.za/#investor-relations.

By order of the Board

3 December 2020


Nedbank Corporate and Investment Banking

Date: 03-12-2020 04:35:00
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.
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from Rebosis Property Fund (JSE:REB) when you join Listcorp.