Read on Twitter
I just finished Rebosis Integrated Annual Report and it is horrific.
Rebosis Property Fund was founded in 2010 by Dr Sisa Ngebulana and listed on the JSE a year later which was the largest property IPO https://twitter.com/MaanoMadima/status/1344610489792389121
Rebosis Property Fund was founded in 2010 by Dr Sisa Ngebulana and listed on the JSE a year later which was the largest property IPO https://twitter.com/MaanoMadima/status/1344610489792389121
Their property portfolio comprises retail (Baywest, Hemingways, Forest Hill, Sunnypark and Bloed Street) , office (National Department of Public Works) and industrial properties.
The Fund has a record South African listed property sector loan-to-value (LTV)ratio of 72.4% although it decreased slightly from highs of 75.7% in 2019 to 72.4%.
The main focus for its management over the last year was to deleverage the fund through the sale of retail assets.
The Fund has disposed the Mdantsane shopping centre for R516m as well as the Medscheme building for a consideration of R89.1m in order to reduce the LTV
The Fund has disposed the Mdantsane shopping centre for R516m as well as the Medscheme building for a consideration of R89.1m in order to reduce the LTV
Some notable achievements were as follows;
1) Reduced debt from R10.1 bn to R9.6 bn
2) 90% tenant retention on lease renewals despite worst economic conditions
3) Passed rental concessions of R70 million to assist tenants with impact of COVID-19
1) Reduced debt from R10.1 bn to R9.6 bn
2) 90% tenant retention on lease renewals despite worst economic conditions
3) Passed rental concessions of R70 million to assist tenants with impact of COVID-19
It's investment properties are valued at R13.2 billion and have been pledged as security for Nedbank Bank corporate, Investec Limited , Standard Bank Limited, Sanlam and RMB facilities amounting to R9.6 billion.
Rebosis reported that they have retained 100% of their retail tenants during COVID-19 as a result of our support measures. We further retained over 90% of tenants on lease renewals, and trading density grew by a positive 0.5% on average, despite lost trading weeks during lockdown
Rebosis will not be paying out any dividends this year.
Executive Directors did not receive any bonuses in 2020.
Even Dr Sisa Ngebulana - CEO remuneration decreased.
Executive Directors did not receive any bonuses in 2020.
Even Dr Sisa Ngebulana - CEO remuneration decreased.
Here's where the fun starts starring their external auditors.
There was dispute involving the valuation of the investment properties.
Management was going with R15.6bn while BDO went with R13.2bn for its 2019FY. This led to to BDO giving the group a qualified audit last year.
There was dispute involving the valuation of the investment properties.
Management was going with R15.6bn while BDO went with R13.2bn for its 2019FY. This led to to BDO giving the group a qualified audit last year.
The dispute has now been resolved, with Rebosis accepting the R2.4bn devaluation, which has effectively resulted in the group now getting a clean audit for both its 2019 and 2020 FY.
The 2019 qualified audit opinion has been changed to an unqualified one.
The 2019 qualified audit opinion has been changed to an unqualified one.
BDO made the following comments:
Material uncertainty related to going concern (Note 39 in the AFS) group’s current liabilities exceeded its current assets by R9,8 billion (company’s R6 billion).
Material uncertainty related to going concern (Note 39 in the AFS) group’s current liabilities exceeded its current assets by R9,8 billion (company’s R6 billion).
The Group and Company’s ability to continue as a going concern is dependent on the roll-forward of the debt facilitates by their banks.These conditions, along with other matters indicate the existence of a material uncertainty that may cast significant doubt on the group’s...
... and company’s ability to continue as a going concern.
Management has noted the short term portion of the interest bearing borrowings is in excess of the current assets of the group by R9.3bn and the company by R6.0bn and as a result the group does not pass the liquidity test
Management has noted the short term portion of the interest bearing borrowings is in excess of the current assets of the group by R9.3bn and the company by R6.0bn and as a result the group does not pass the liquidity test
Liquidity has been negatively impacted, which required company to attract additional short-term funding of R40 million from its banks in order to meet interest obligations. This was repaid at the end of August 2020.
During the period ended 31 August 2020, the company has furthermore incurred losses due to the write-off and loss
allowance provisions recognised on outstanding receivables of R56.9 million and R53.6 million respectively.
allowance provisions recognised on outstanding receivables of R56.9 million and R53.6 million respectively.
