Grit Real Estate Income Group Correction of Note 17 in Annual Results (9449P)

TIDMGR1T

RNS Number : 9449P

Grit Real Estate Income Group

15 October 2019

GRIT REAL ESTATE INCOME GROUP LIMITED

(Registered by continuation in the Republic of Mauritius)

(Registration number: C128881 C1/GBL)

LSE share code: GR1T

SEM share code: DEL.N0000

JSE share code: GTR

ISIN: MU0473N00036

("Grit" or the "Company")

CORRECTION OF NOTE 17 IN THE RESULTS FOR THE YEARED 30 JUNE 2019

Shareholders are referred to the results announcement for the year ended 30 June 2019 as published by the Company on 30 September 2019 ("Results") and are advised that Note 17, Reconciliation of basic and headline earnings, contained a restatement relating to the 30 June 2018 headline earnings that was not disclosed as such.

Accordingly, shareholders are advised that Note 17 of the Results has been corrected to reflect the restatement as set out below. All other details in the Results announcement remain unchanged.

17. Reconciliation of basic and headline earnings

 
                                                             Restated 
                                         30 June 2019    30 June 2018 
                                              US$'000         US$'000 
                                       --------------  -------------- 
 Basic earnings                                28,035          28,562 
                                       --------------  -------------- 
 Fair value adjustments on 
  investment property                        (21,363)        (13,762) 
                                       --------------  -------------- 
 Deferred taxation on investment 
  property revaluation                         22,349           5,979 
                                       --------------  -------------- 
 Fair value adjustment on other 
  investments                                     795             757 
                                       --------------  -------------- 
 Fair value adjustment on other 
  financial asset                                 516             128 
                                       --------------  -------------- 
 Fair value adjustment on derivative 
  financial instruments                             6            (25) 
                                       --------------  -------------- 
 Share of fair value adjustment 
  on investment property accounted 
  by associate                                (6,921)         (8,858) 
                                       --------------  -------------- 
 Headline earnings attributable 
  to shareholders                              23,417          12,781 
                                       --------------  -------------- 
 
 Weighted average number of 
  shares(1)                               289,612,780     201,200,481 
                                       --------------  -------------- 
 Earnings per share                              9.68           14.20 
                                       --------------  -------------- 
 Basic and diluted earnings 
  per share (cents)                              9.68           14.20 
                                       --------------  -------------- 
 Headline and diluted headline 
  earnings per share (cents)                     8.09            6.35 
                                       --------------  -------------- 
 

Restatement of the reconciliation of basic earnings and headline earnings for the year ended 30 June 2018

 
                                       Previously      Correction        Restated 
                                         reported    30 June 2018    30 June 2018 
                                     30 June 2018         US$'000         US$'000 
                                          US$'000 
 Basic earnings                            28,562               -          28,562 
                                   --------------  --------------  -------------- 
 Fair value adjustments 
  on investment property                 (13,762)               -        (13,762) 
                                   --------------  --------------  -------------- 
 Deferred taxation on investment 
  property revaluation                      5,979               -           5,979 
                                   --------------  --------------  -------------- 
 Fair value adjustment 
  on other investments                        757               -             757 
                                   --------------  --------------  -------------- 
 Fair value adjustment 
  on other financial asset                    128               -             128 
                                   --------------  --------------  -------------- 
 Fair value adjustment 
  on derivative financial 
  instruments                                (25)               -            (25) 
                                   --------------  --------------  -------------- 
 Share of fair value adjustment 
  on investment property 
  accounted by associate(2)                 8,858        (17,716)         (8,858) 
                                   --------------  --------------  -------------- 
 Share-based payment expense(3)               282           (282)               - 
                                   --------------  --------------  -------------- 
 Headline earnings attributable 
  to shareholders                          30,779        (17,998)          12,781 
                                   --------------  --------------  -------------- 
 
 Weighted average number 
  of shares(1)                        201,200,481     201,200,481     201,200,481 
                                   --------------  --------------  -------------- 
 Earnings per share                         14.20                           14.20 
                                   --------------  --------------  -------------- 
 Basic and diluted earnings 
  per share (cents)                         14.20                           14.20 
                                   --------------  --------------  -------------- 
 Headline and diluted headline 
  earnings per share (cents)                15.30                            6.35 
                                   --------------  --------------  -------------- 
 

Notes

   1)     There are no dilutionary instruments in issue 

2) The share of fair value adjustment on investment property accounted by associate has been restated to correct for an amount incorrectly added back in the headline earnings reconciliation for the year ended 30 June 2018

3) Share-based payment expense incorrectly added back in the headline earnings reconciliation for the year ended 30 June 2018

The Results have been updated to reflect the corrected note and are available on the Company's website at https://grit.group/financial-results/ and on the link below:

https://senspdf.jse.co.za/documents/2019/JSE/ISSE/GTRE/FY2019.pdf.

By order of the Board

15 October 2019

FOR FURTHER INFORMATION, PLEASE CONTACT:

 
Grit Real Estate Income Group Limited 
Bronwyn Corbett, Chief Executive Officer               [phone] 
Darren Veenhuis, Head of Investor Relations            [phone] 
Morne Reinders, Investor Relations                     [phone] 
 
Maitland/AMO - Communications Adviser 
James Benjamin                                         [phone] 
Vikki Kosmalska                                        [e-mail] 
Jason Ochere 
 
finnCap Ltd - UK Financial Adviser 
William Marle / Scott Mathieson / Matthew Radley 
 (Corporate Finance)                                   [phone] 
Mark Whitfeld (Sales)                                  [phone] 
Monica Tepes (Research)                                [phone] 
 
Perigeum Capital Ltd - SEM Authorised Representative 
 and Sponsor 
Shamin A. Sookia                                       [phone] 
Kesaven Moothoosamy                                    [phone] 
 
PSG Capital - JSE Sponsor and Corporate Adviser 
David Tosi                                             [phone] 
 

The Company's LEI is: 21380084LCGHJRS8CN05

NOTES:

Grit Real Estate Income Group Limited is a leading pan-African real estate company focused on investing in and actively managing a diversified portfolio of assets in carefully selected African countries (excluding South Africa). These high quality assets are underpinned by predominantly US$ and Euro denominated long-term leases with a wide range of blue-chip multi-national tenant covenants across a diverse range of robust property sectors.

The Company is committed to delivering strong and sustainable income for shareholders, with the potential for income and capital growth. The Company is targeting a net total shareholder return inclusive of NAV growth of 12.0% p.a.*

The Company currently holds primary listings on both the Main Market of the London Stock Exchange (LSE: GR1T) and on the Main Board of the Johannesburg Stock Exchange (JSE: GTR), while its listing on the Official Market of the Stock Exchange of Mauritius Ltd is termed as a secondary listing (SEM: DEL.N0000).

Further information on the Company is available at http://grit.group/

* This is a target only and not a profit forecast and there can be no assurance that it will be met. Any forward-looking statements and the assumptions underlying such statements are the responsibility of the Board of Directors and have not been reviewed or reported on by the Company's external auditors

Directors:

Peter Todd+ (Chairman), Bronwyn Corbett (Chief Executive Officer)*, Leon van de Moortele (Chief Financial Officer)*, Ian Macleod+, Nomzamo Radebe, Catherine McIlraith+, David Love+, Sir Samuel Esson Jonah+, and Bright Laaka (Permanent Alternate Director to Nomzamo Radebe).

(* Executive Director) (+ independent Non-Executive Director)

Company secretary: Intercontinental Fund Services Limited

Registered address: c/o Intercontinental Fund Services Limited, Level 5, Alexander House, 35 Cybercity, Ebène 72201, Mauritius

Transfer secretary (South Africa): Computershare Investor Services Proprietary Limited

Registrar and transfer agent (Mauritius): Intercontinental Secretarial Services Limited

JSE sponsor: PSG Capital Proprietary Limited

Sponsoring broker: Axys Stockbroking Limited

SEM authorised representative and sponsor: Perigeum Capital Ltd

This notice is issued pursuant to the LSE Listing Rules, JSE Listings Requirements, SEM Listing Rule 11.3 and the Mauritian Securities Act 2005. The board of directors of the Company accepts full responsibility for the accuracy of the information contained in this communiqué.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

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October 15, 2019 07:30 ET (11:30 GMT)