REG - Sirius Real Estate - Half-year Report <Origin Href="QuoteRef">SRET.L</Origin> - Part 2
28/11/2016 07:05
- Part 2: For the preceding part double click ID:nRSb2322Qa
derivative financial instruments 126 (271) 476
Depreciation 5 416 293 634
Finance income 8 (18) (29) (45)
Finance expense 5,132 6,271 12,888
Exit fees/prepayment penalties 15 5,929 5,929
Cash flows from operations before changes in working capital 20,115 13,508 34,328
Changes in working capital
Decrease/(increase) in trade and other receivables 3,738 (707) (356)
(Decrease)/increase in trade and other payables (2,206) 721 3,707
Taxation received/(paid) 118 (42) 168
Cash flows from operating activities 21,765 13,480 37,847
Investing activities
Purchase of investment properties (50,801) (31,365) (82,716)
Prepayments relating to new acquisitions (378) (18,114) (2,147)
Capital expenditure (7,955) (4,363) (14,391)
Purchase of plant and equipment (410) (380) (821)
Net proceeds on disposal of properties - (68) -
Interest received 18 29 45
Cash flows used in investing activities (59,526) (54,261) (100,030)
Financing activities
Issue of shares 29,117 48,899 48,873
Dividends paid (5,503) (3,425) (7,345)
Proceeds from loans 141,500 59,000 99,088
Repayment of loans (116,426) (58,324) (60,383)
Exit fees/prepayment penalties (15) (5,929) (5,929)
Finance charges paid (6,039) (5,463) (12,384)
Cash flows from financing activities 42,634 34,758 61,920
Increase/(decrease) in cash and cash equivalents 4,873 (6,023) (263)
Cash and cash equivalents at the beginning of the period 19,874 20,137 20,137
Cash and cash equivalents at the end of the period 16 24,747 14,114 19,874
Notes forming part of the financial statements
1. General information
The Company is a company incorporated in Guernsey and resident in the United
Kingdom, whose shares are publiclytraded on AIM of the LSE (primary listing)
and the AltX of the JSE (secondary listing).
The unaudited interim condensed set of consolidated financial statements of
Sirius Real Estate Limited comprises that of the Company and its subsidiaries
(together referred to as the "Group").
The principal activity of the Group is the investment in and operation and
development of commercial property to provide conventional and flexible
workspace in Germany.
The audited consolidated financial statements of the Group for the year ended
31 March 2016 are available upon request from the Company's registered office
at PO Box 119, Martello Court, Admiral Park, St. Peter Port, Guernsey GY1 3HB,
Channel Islands or at www.sirius-real-estate.com.
2. Significant accounting policies
(a) Basis of preparation
The unaudited interim condensed set of consolidated financial statements have
been prepared on a historical cost basis, except for investment properties,
investment properties held for sale and derivative financial instruments which
have been measured at fair value. The unaudited interim condensed set of
consolidated financial statements are presented in euros and all values are
rounded to the nearest thousand (E000) except where otherwise indicated.
(b) Statement of compliance
The audited consolidated financial statements of the Group for the year ended
31 March 2016 have been prepared in accordance with IFRSs adopted for use in
the EU ("Adopted IFRSs") and the Companies (Guernsey) Law, 2008. The unaudited
interim set of financial statements has been prepared applying the accounting
policies and presentation that were applied in the preparation of the
Company's audited consolidated financial statements for the year ended 31
March 2016. They do not include all of the information required for full
annual financial statements and should be read in conjunction with the audited
consolidated financial statements of the Group as at and for the year ended 31
March 2016.
(c) Going concern
Having reviewed the Group's current trading and cash flow forecasts, together
with sensitivities and mitigating factors and the available facilities, the
Board has a reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future. Accordingly, the
Board continued to adopt the going concern basis in preparing these financial
statements.
(d) Basis of consolidation
The unaudited interim condensed set of consolidated financial statements
comprises the financial statements of the Group as at 30 September 2016. The
financial statements of the subsidiaries are prepared for the same reporting
period as the Company, using consistent accounting policies.
All intra-group balances and transactions and any unrealised income and
expenses arising from intra-group transactions are eliminated in preparing the
consolidated financial statements.
Subsidiaries are fully consolidated from the date of acquisition, being the
date on which the Group obtains control, and continue to be consolidated until
the date that such control ceases.
Non-controlling interests represent the portion of profit or loss and net
assets not held by the Group and are presented separately in the consolidated
statement of comprehensive income and within equity in the consolidated
statement of financial position, separately from the Company's shareholders'
equity.
(e) Significant accounting policies
The accounting policies applied by the Group in this unaudited interim
condensed set of consolidated financial statements are the same as those
applied by the Group in its audited consolidated financial statements as at
and for the year ended 31 March 2016.
3. Operating segments
The Directors are of the opinion that the Group is engaged in a single segment
of business, being property investment, and in one geographical area, Germany.
All rental income is derived from operations in Germany. There is no one
tenant that represents more than 10 per cent of Group revenues. The chief
operating decision maker is considered to be the Board of Directors, which is
provided with consolidated IFRS information on a quarterly basis.
4. Revenue
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Rental and other income from investment properties 32,636 25,869 55,790
Other income relates primarily to income associated with conferencing and
catering.
5. Operating profit
The following items have been (credited)/charged in arriving at operating
profit:
Direct costs
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Service charge income (18,184) (15,962) (36,729)
Property and overhead costs 27,084 24,291 52,561
Irrecoverable property costs and overheads 8,900 8,329 15,832
Property management fee - - -
8,900 8,329 15,832
15,832
Administrative expenses
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Audit fee 213 288 535
Legal and professional fees 779 740 1,661
Other administration costs 1,093 681 1,491
LTIP 2,152 - 1,452
Non-recurring items 804 (58) 464
Administrative expenses 5,041 1,651 5,603
Non-recurring items relate primarily to costs associated with scrip dividends,
aborted acquisitions and other non-recurring events or transactions. In the
six months to 30 September 2016 an amount of E711,000 was accrued for in
respect of services relating to market listing activity. It is expected that
total costs relating to market listing activity will be in the region of
E1,600,000.
Other operating expenses
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Directors' fees 94 85 170
Depreciation 416 293 634
Bank fees 70 62 113
Marketing and other expenses 721 568 1,282
Other operating expenses 1,301 1,008 2,199
6. Employee costs and numbers
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Wages and salaries 6,921 4,789 11,301
Social security costs 1,286 943 2,146
Other employment costs 48 29 58
8,255 5,761 13,505
The costs for the period ended 30 September 2016 include those relating to
Executive Directors and an accrual of E2,152,000 (31 March 2016: E1,452,000)
relating to the granting or award of shares under LTIPs (see note 7).
All employees are employed directly by one of the following Group subsidiary
companies: Sirius Facilities GmbH, Sirius Facilities (UK) Limited,Curris
Facilities & Utilities Management GmbH, SFG NOVA GmbH and Sirius Corporate
Services B.V. The average number of people employedby the Group during the
period was 201 (30 September 2015: 188; 31 March 2016: 182) expressed in
full-time equivalents. In addition, the Board of Directors consists of four
Non-executive Directors and two Executive Directors as at 30 September 2016.
7. Employee schemes
Equity settled share based payments
A new LTIP for the benefit of the Executive Directors and the Senior
Management Team was approved in October 2015. The fair value determined at the
grant date is expensed on a straight-line basis over the vesting and holding
period, based on the Company's estimate of the shares that will eventually
vest and adjusted for the effect of non-market-based vesting conditions. Under
the LTIP, the awards are granted in the form of whole shares at no cost to the
participants. Shares vest after the three year performance period followed by
a holding period. The performance conditions used to determine the vesting of
the award are based on net asset value and total shareholder return allowing
vesting of zero per cent to a maximum of 125 per cent. As a result, a maximum
of 25,150,000 shares were granted, subject to performance criteria,under the
scheme in December 2015 and an expense of E1,452,000 was recognised in the
consolidated statement of comprehensive income to 31 March 2016.
A total of 1,300,000 shares were forfeited in the six month period to 30
September 2016. An expense of E2,152,000 was recognised in the statement of
comprehensive income to 30 September 2016.
Movements in the number of shares outstanding and their weighted average
exercise prices are as follows:
(Unaudited)six months ended Year ended
30 September 2016 31 March 2016
Number ofshares Weightedaverageexerciseprice E000 Number ofshares Weightedaverageexerciseprice E000
Balance outstanding as at the beginning of the period (nil exercisable) 25,150,000 - - -
Maximum granted during the period - - 25,150,000 -
Forfeited during the period (1,300,000) - - -
Exercised during the period - - - -
Balance outstanding as at the end of the period (nil exercisable) 23,850,000 - 25,150,000 -
The fair value per share was determined using the Monte-Carlo model, with the
following assumptions used in the calculation as at grant date:
31 March 2016
Weighted average share price - E 0.52
Weighted average exercise price - E -
Expected volatility - % 20
Expected life - years 2.48
Risk-free rate based on European treasury bonds' rate of return - % (0.11)
Expected dividend yield - % 3.41
Assumptions considered in the model include: expected volatility of the
Company's share price, as determined by calculating the historical volatility
of the Company's share price over the historic period immediately prior to the
date of grant and commensurate with the expectedlife of the awards; dividend
yield based on the actual dividend yield as a percentage of share price at the
date of grant; expected life of the awards; risk-free rates; and correlation
between comparators.
Employee benefit scheme
The original LTIP for the benefit of the Executive Directors and the Senior
Management Team expired at the end of March 2015. As a result, a total of
3,471,200 Ordinary Shares were issued during the financial year to 31 March
2016.
During the period 313,608 shares were issued to the Company's management
through its MSP and Ordinary Shares taken in lieu of bonus (31 March 2016:
134,918 shares).
A reconciliation of share-based payments and employee benefit schemes and
their impact on the consolidated statement of changes in equity is as
follows:
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Charge relating to original LTIP - 1,625 1,625
Charge relating to MSP 153 - 50
Charge relating to new LTIP 2,152 - 1,452
Share-based payment transactions as per consolidated statement of changes in equity 2,305 1,625 3,127
8. Finance income and expense
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Bank interest income 18 29 45
Finance income 18 29 45
Bank loan interest expense (3,642) (5,462) (9,945)
Amortisation of capitalised finance costs (583) (809) (1,277)
Refinancing costs (922) (7,595) (7,595)
Finance expense (5,147) (13,866) (18,817)
Net finance expense (5,129) (13,837) (18,772)
The refinancing costs on derecognition of the loans for the six months ended
30 September 2016 relate to the costs associated with the refinancing of the
Berlin-Hannoversche Hypothekenbank AG/Deutsche Pfandbriefbank AG facility with
the new E137 million loan facility. The refinancing costs for derecognition of
the loans in the year ended 31 March 2016 relate to the costs associated with
the refinancing of the Macquarie loan facilities with the new E59 million SEB
AG loan facility.
9. Taxation
Consolidated statement of comprehensive income
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Current income tax
Current income tax (charge)/credit (59) 256 156
Adjustment in respect of prior periods 81 - -
22 256 156
Deferred tax
Relating to origination and reversal of temporary differences (4,738) (441) (2,727)
Relating to LTIP charge for the period 84 - 183
Income tax charge reported in the statement of comprehensive income (4,632) (185) (2,388)
Deferred income tax liability
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Opening balance 11,747 9,020 9,020
Taxes on the revaluation of investment properties and derivative financial instruments* 4,738 441 2,727
Balance as at period end 16,485 9,461 11,747
* Movement refers to the revaluation of investment properties to fair
value, the recognition of derivatives and adjustments for lease incentives
(e.g. rent-free periods).
Deferred income tax asset
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Opening balance (183) - -
Relating to LTIP charge for the year (84) - (183)
Balance as at period end (267) - (183)
The Group has tax losses of E252,002,000, (31 March 2016: E235,682,000) that
are available for offset against future profits of its subsidiaries in
whichthe losses arose under the restrictions of the minimum taxation. Deferred
tax assets have not been recognised in respect of the revaluation losses on
investment properties and interest rateswaps as they may not be used to offset
taxable profits elsewhere in the Group as realisation is not assured. Deferred
tax assets have been recognised in respect of the valuation of the Company
LTIP.
10. Earnings per share
The calculation of the basic, diluted, headline and adjusted earnings per
share is based on the following data:
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Earnings
Basic earnings 32,862 28,079 54,671
Diluted earnings 32,862 28,204 54,921
Headline earnings 12,270 1,785 13,582
Diluted headline earnings 12,270 1,910 13,832
Adjusted
Basic earnings after tax 32,862 28,079 54,671
Deduct revaluation surplus, net of related tax (20,592) (26,362) (41,089)
Add loss/deduct gain on sale of properties, net of related tax - 68 -
Headline earnings after tax 12,270 1,785 13,582
Add/deduct change in fair value of derivative financial instrument, net of related tax 86 (495) 124
Add non-recurring items, net of related tax 3,794 7,537 9,329
Adjusted earnings after tax 16,150 8,827 23,035
Number of shares
Weighted average number of Ordinary Shares for the purpose of basic and headline earnings per share 803,512,009 707,075,634 728,152,740
Weighted average number of Ordinary Shares for the purpose of diluted earnings and diluted headline earnings per share 827,362,009 727,908,968 770,534,539
Weighted average number of Ordinary Shares for the purpose of adjusted earnings per share 803,512,009 707,075,634 728,152,740
Basic earnings per share 4.09c 3.97c 7.51c
Diluted earnings per share 3.97c 3.87c 7.13c
Headline earnings per share 1.53c 0.25c 1.87c
Diluted headline earnings per share 1.48c 0.26c 1.80c
Adjusted earnings per share 2.01c 1.25c 3.16c
Adjusted diluted earnings per share 1.95c 1.21c 2.99c
Non-recurring items as stated within earnings per share can be reconciled with
those stated within administrative expenses in note 5 as follows:
(Unaudited)six months ended30 September 2016E000 (Unaudited)six months ended30 September 2015E000 Year ended31 March 2016E000
Non-recurring items as per note 5 804 (58) 464
Finance restructuring costs 922 7,595 7,595
LTIP 2,152 - 1,452
Change in deferred tax assets (84) - (183)
Non-recurring items as per note 10 3,794 7,537 9,328
The number of shares has been reduced by 1,062,058 shares (30 September 2015:
1,471,875 shares; 31 March 2016: 1,375,666 shares), that are held by the
Company as Treasury Shares at 30 September 2016, for the calculation of basic,
headline, adjusted and diluted earnings per share.
The weighted average number of shares for the purpose of adjusted earnings per
share is calculated as follows:
(Unaudited)30 September 2016Number of shares (Unaudited)30 September 2015Number of shares 31 March 2016Number of shares
Weighted average number of Ordinary Shares for the purpose of basic and headline earnings per share 803,512,009 707,075,634 728,152,740
Effect of conversion of convertible shareholder loan - 20,833,334 22,261,799
Effect of grant of LTIP shares 23,850,000 - 20,120,000
Weighted average number of Ordinary Shares for the purpose of diluted earnings and diluted headline earnings per share 827,362,009 727,908,968 770,534,539
The Directors have chosen to disclose adjusted earnings per share in order to
provide a better indication of the Group's underlying business performance;
accordingly, it excludes the effect of non-recurring items, gains/losses on
sale of properties, deferred tax and the revaluation deficits/surpluses on the
investment properties and derivative financial instruments.
11. Net assets per share
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Net assets
Net assets for the purpose of assets per share (assets attributable to the equity holders of the Company) 450,833 362,926 387,052
Deferred tax arising on revaluation of properties and LTIP valuation 16,218 9,461 11,564
Derivative financial instruments 599 1,824 2,571
Adjusted net assets attributable to equity holders of the Company 467,650 374,211 401,187
Number of shares
Number of Ordinary Shares for the purpose of net assets per share 840,769,233 746,410,666 751,984,887
Net assets per share 53.62c 48.62c 51.47c
Adjusted net assets per share 55.62c 50.13c 53.35c
The number of shares has been reduced by 1,062,058 shares (31 March 2016:
1,375,666 shares) that are held by the Company as Treasury Shares at 30
September 2016, for the calculation of net assets and adjusted net assets per
share.
12. Investment properties
Most of the Group's properties are pledged as security for loans obtained by
the Group. See note 18 for details.
A reconciliation of the valuation carried out by the external valuer to the
carrying values shown in the statement of financial position is as follows:
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Investment properties at market value 779,590 615,240 695,190
Adjustment in respect of lease incentives (2,820) (2,020) (2,427)
Directors' impairment of non-core assets (5,910) (3,100) (5,310)
Reclassified as investment properties held for sale (5,870) - -
Balance as at period end 764,990 610,120 687,453
The fair value (market value) of the Group's investment properties at 30
September 2016 has been arrived at on the basis of a valuation carried out at
that date by Cushman & Wakefield LLP (2015: Cushman & Wakefield LLP), an
independent valuer. The adjustment in respect of lease incentives excludes
those relating to assets that have been written down.
The valuation is based upon assumptions including future rental income,
anticipated maintenance costs and an appropriate discount rate. The properties
are valued on the basis of a ten year discounted cash flow model supported by
comparable evidence. The discounted cash flow calculation is a valuation of
rental income considering non-recoverable costs and applying a discount rate
for the current income risk over a ten year period. After ten years a
determining residual value (exit scenario) is calculated. A capitalisation
rate is applied to the more uncertain future income, discounted to a present
value.
The Directors also perform a review of the valuation and they have decided to
reduce the value of 3 of the 42 properties from the Cushman & Wakefield LLP
valuation.
The weighted average lease expiry remaining across the whole portfolio at 30
September 2016 was 2.6 years.
The movement on the valuation of the investment properties at market value as
set out in the valuer's report is as follows:
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Total investment properties at market value as per valuer's report as at the beginning of the period 695,190 550,030 550,030
Additions 50,801 31,365 82,716
Subsequent expenditure 7,236 6,102 14,943
Disposals - - -
Surplus on revaluation above capex 26,363 27,743 47,501
Reclassified as other fixed assets - - -
Total investment properties at market value as per valuer's report as at the end of the period 779,590 615,240 695,190
The reconciliation of surplus on revaluation above capex as per the statement
of comprehensive income is as follows:
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Surplus on revaluation above capex 26,363 27,743 47,501
Adjustment in respect of lease incentives (393) (16) (423)
Changes in Directors' impairment of non-core asset valuations (600) (700) (2,910)
Surplus on revaluation of investment properties reported in the statement of comprehensive income 25,370 27,027 44,168
13. Investment properties held for sale
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Merseburg 5,870 - -
Bremen Doetlingerstr. partial site - - -
Bonn Siemensstr. land - - -
Cottbus site - - -
Balance as at period end 5,870 - -
Investment properties held for sale at 30 September 2016 is E5.9 million (31
March 2016: Enil) representing a non-core asset that was notarised for sale in
the period. A loss of E1.1 million was recognised in the surplus on
revaluation of investment properties within the consolidated statement of
comprehensive income in the period. See note 24 for details of a disposal of a
non-income producing piece of land that was notarised post period end which
has not been recognised as an investment property held for sale.
14. Goodwill
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Opening balance 3,738 3,738 3,738
Additions - - -
Impairment - - -
Closing balance 3,738 3,738 3,738
On 30 January 2012 a transaction was completed to internalise the Asset
Management Agreement which was previously held by a company external to the
Group and, as a result of the consideration givenexceeding the net assets
acquired, goodwill of E3,738,000 was recognised. The impairment review
methodology for goodwill is unchanged from that described in the 2016 Annual
Report and Group Financial Statements. Current business plans indicate that
the balance is unimpaired.
15. Trade and other receivables
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Trade receivables 1,808 1,857 3,069
Other receivables 5,265 6,206 6,368
Prepayments 1,503 19,307 2,499
Related party receivable - - -
Balance as at period end 8,576 27,370 11,936
16. Cash and cash equivalents
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Cash at bank and in hand 24,747 14,114 19,874
Balance as at period end 24,747 14,114 19,874
Cash at bank earns interest at floating rates based on daily bank deposit
rates. The fair value of cash as at 30 September 2016 is E24,747,000 (31 March
2016: E19,874,000).
As at 30 September 2016 E11,462,000 (31 March 2016: E10,858,000) of cash is
held in blocked accounts. Included in blocked accounts is deposits received
from tenants, cash held in escrow as requested by a supplier, restricted
accounts for office rent deposits, amounts reserved for future bank loan
interest and amortisation payments, pursuant to certain of the Group's banking
facilities, and an amount reserved for future capital expenditure.
17. Trade and other payables
(Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Trade payables 4,483 7,359 6,960
Accrued expenses 9,568 8,236 9,305
Accrued interest 1,564 1,614 530
Other payables 12,148 9,375 12,746
Balance as at period end 27,763 26,584 29,541
18. Interest-bearing loans and borrowings
EffectiveInterest rate% Maturity (Unaudited)30 September 2016E000 (Unaudited)30 September 2015E000 31 March 2016E000
Current
Deutsche Genossenschafts-Hypothekenbank AG
- fixed rate facility 1.59 31 March 2021 320 - 320
Bayerische Landesbank
- hedged floating rate facility Hedged1 19 October 2020 508 - 508
SEB AG
- fixed rate facility 1.84 1 September 2022 1,180 1,180 1,180
Berlin-Hannoversche Hypothekenbank AG/Deutsche Pfandbriefbank AG
- floating rate facility Floating2 27 April 2023 1,063 1,150 1,437
- fixed rate facility 1.66 27 April 2023 2,394 1,150 1,437
Berlin-Hannoversche Hypothekenbank AG
- fixed rate facility 2.85 31 December 2019 828 720 756
- fixed rate facility 1.32 31 December 2019 112 - -
K-Bonds I
- fixed rate facility 6.00 31 July 2020 1,000 1,000 1,000
Capitalised finance charges on all loans (1,201) (853) (996)
6,204 4,347 5,642
Non-current
Deutsche Genossenschafts-Hypothekenbank AG
- fixed rate facility 1.59 31 March 2021 14,520 - 14,680
Bayerische Landesbank
- hedged floating rate facility Hedged1 19 October 2020 24,367 - 24,621
SEB AG
- fixed rate facility 1.84 1 September 2022 56,640 57,820 57,230
Berlin-Hannoversche Hypothekenbank AG/Deutsche Pfandbriefbank AG
- floating rate facility Floating2 27 April 2023 40,906 54,625 53,763
- fixed rate facility 1.66 27 April 2023 91,138 54,625 53,763
Berlin-Hannoversche Hypothekenbank AG
- fixed rate facility 2.85 31 December 2019 33,912 34,740 34,344
- fixed rate facility 1.32 31 December 2019 4,341 - -
K-Bonds I
- fixed rate facility 4.00 31 July 2023 45,000 45,000 45,000
- fixed rate facility 6.00 31 July 2020 3,000 4,000 4,000
Convertible fixed rate facility 5.00 21 March 2018 - 5,000 5,000
Capitalised finance charges on all loans (5,807) (3,895) (4,053)
308,017 251,915 288,348
Total 314,221 256,262 293,990
1 This facility is hedged with a swap charged at a rate of 1.66 per cent.
2 Tranche 2 of this facility is charged with a floating rate of 1.57 per
cent over three month EURIBOR (not less than 0 per cent) for the full term of
the loan.
The Group has pledged 36 (31 March 2016: 33) investment properties to secure
related interest-bearing debt facilities granted to the Group. The 36 (31
March 2016: 33) properties had a combined valuation of E696,302,000 as at 30
September 2016 (31 March 2016: E635,413,000).
Deutsche Genossenschafts-Hypothekenbank AG
On 24 March 2016, the Group agreed to a facility agreement with Deutsche
Genossenschafts-Hypothekenbank AG for E16 million. As at 31 March 2016 tranche
1 had been drawn down in full totalling E15 million. The loan terminates on 31
March 2021. Amortisation is 2 per cent per annum with the remainder of the
loan due in the fifth year. The facility is charged a fixed interest rate of
1.59 per cent. The facility is secured over one property asset and is subject
to various covenants with which the Group has complied.
Bayerische Landesbank
On 20 October 2015, the Group agreed to a facility agreement with Bayerische
Landesbank for E25.4 million. The loan terminates on 19 October 2020.
Amortisation is 2 per cent per annum with the remainder due in the fourth
year. The full facility has been hedged at a rate of 1.66 per cent until 19
October 2020 by way of an interest rate swap. The facility is secured over
four property assets and is subject to various covenants with which the Group
has complied.
SEB AG
On 2 September 2015, the Group agreed to a facility agreement with SEB AG for
E59 million to refinance the two existing Macquarie facilities. The loan
terminates on 1 September 2022. Amortisation is 2 per cent per annum with the
remainder due in the seventh year. The facility is charged a fixed interest
rate of 1.84 per cent. This facility is secured over 12 of the 14 property
assets previously financed through the Macquarie facilities, thereby two
non-core assets were unencumbered in the refinancing process. The facility is
subject to various covenants with which the Group has complied.
Berlin-Hannoversche Hypothekenbank AG/Deutsche Pfandbriefbank AG
On 31 March 2014, the Group agreed to a facility agreement with
Berlin-Hannoversche Hypothekenbank AG and Deutsche Pfandbriefbank AG for E115
million. The loan terminates on 31 March 2019. Amortisation is 2 per cent per
annum for the first two years, 2.5 per cent for the third year and 3 per cent
thereafter, with the remainder due in the fifth year. Half of the facility
(E55.2 million) is charged interest at 3.2 per cent plus three months'
EURIBORand is capped at 4.5 per cent, and the other half (E55.2 million) has
been hedged at a rate of 4.265 per cent until 31 March 2019. This facility is
secured over nine property assets and is subject to various covenants with
which the Group has complied.
On 28 April 2016, the Group agreed to a facility agreement with
Berlin-Hannoversche Hypothekenbank AG/Deutsche Pfandbriefbank AG to refinance
its existing loan that had an outstanding balance of E110.4 million at 31
March 2016. The new facility is split in two tranches totalling E137 million
and terminates on 27 April 2023. Tranche 1, totalling E94.5
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