STENPROP LIMITED
(Formerly GoGlobal Properties Limited)
(Incorporated in Bermuda)
(Registration number 47031)
BSX share code: STP.BH JSE share code: STP
ISIN: BMG8465Y1093
(?Stenprop? or ?the Company?)
FORECAST FINANCIAL INFORMATION FOR THE YEAR ENDING 31 MARCH 2016, PURSUANT TO THE PROPOSED TRANSFER OF THE COMPANY?S JSE
LISTING FROM THE ALTX MARKET TO THE MAIN BOARD
Stenprop currently holds a primary listing on the Bermuda Stock Exchange (?BSX?) and a secondary listing on the
Alternative Exchange (?AltX?) of the JSE. Stenprop intends transferring its listing from the AltX to the ?Real Estate ?
Real Estate Holdings and Development? sector of the Main Board of the JSE during the third quarter of the current
financial year. The JSE will designate the Company?s Main Board listing as its primary listing; the Company will therefore
have dual primary listings.
In order to qualify for the JSE?s Main Board, the JSE Listings Requirements require that three years of audited financial
statements are presented. To date, the Company has published two years of audited financial statements, being for the
period from incorporation to 31 March 2014 and for the year ended 31 March 2015. The Company is therefore required by
the JSE to publish a forecast statement of comprehensive income for the year ending 31 March 2016.
Accordingly, the purpose of this announcement is to present such forecast statement of comprehensive income, including
the notes thereto (the ?Forecast?). The Forecast was reported on by Deloitte & Touche (South Africa), who have issued
an unmodified independent reporting accountants? report (the ?Report?). The Forecast and Report have been published
and are available on the Company?s website at www.stenprop.com/investor-relations; alternatively they are available for
inspection at the Company?s registered address being 20 Reid Street, Williams House, 3 rd Floor, Hamilton, HM 11,
Bermuda.
The Forecast, including the assumptions on which it is based and the financial information from which it is prepared, are
the responsibility of the directors. The Forecast has been prepared in compliance with IFRS, JSE Listings Requirements
and in accordance with the group?s accounting policies.
Forecast statement of comprehensive income
Forecast
for the year ending
31 March
2016
EUR
Net rental income 40,552,754
Management fee income 2,598,222
Operating costs ( 10,029,972)
Net operating income 33,121,003
Investment in associates 2,718,582
Investment in joint ventures 2,976,414
Profit from operations 38,815,999
Net gain from fair value of financial liabilities 2,510,465
Net finance costs ( 11,108,158)
Profit for the period before taxation 30,218,306
Taxation ( 1,836,652)
Profit for the period after taxation 28,381,654
Profit attributable to:
Forecast
for the year ending
31 March
2016
EUR
Equity holders 28,251,759
Non-controlling interest 129,895
Total comprehensive profit for the period 28,381,654
Weighted average number of shares in issue 277,817,610
Share-based payments 327,149
Diluted weighted average number of shares in issue - 31 March 2016 278,144,759
Earnings per share
? IFRS EPS (Euro cents) 10.17
? EPRA/Headline EPS (Euro cents) 9.62
? Adjusted EPRA/Headline EPS (Euro cents) 10.33
? IFRS Diluted EPS (Euro cents) 10.16
? EPRA/Headline Diluted EPS (Euro cents) 9.61
? Adjusted EPRA/Headline Diluted EPS (Euro cents) 10.32
Reconciliation of profit to Headline and adjusted EPRA earnings
Earnings per IFRS income statement attributable to shareholders 28,251,759
Adjustments to calculate EPRA/Headline earnings, exclude:
Changes in fair value of financial instruments ( 3,247,600)
Deferred tax in respect of EPRA/Headline adjustments 1,234,029
Adjustments above in respect of joint ventures and associates
Deferred tax in respect of EPRA/Headline adjustments 496,893
EPRA/Headline earnings attributable to shareholders 26,735,082
Further adjustments to arrive at Adjusted EPRA earnings
Straight-line unwind of purchase swaps 1,976,377
Adjusted EPRA earnings attributable to shareholders 28,711,459
Notes and assumptions
The forecast statement of comprehensive income incorporates the following material assumptions in respect of
revenue and expenses that can be influenced by the directors:
? Stenprop's management forecasts for the year ending 31 March 2016 are based on information derived from the
property managers and asset managers engaged with the portfolio as well as historical information.
? No further acquisitions or disposals are included, other than those already undertaken at the time the Forecast
was prepared (which were disclosed in the 31 March 2015 financial statements as post balance sheet events).
? Contracted revenue is based on existing lease agreements. This accounts for 97.4% of rental income.
? Uncontracted revenue amounts to 2.6% of rental income for the year ending 31 March 2016.
? None of Stenprop's lease agreements are based on turnover rental (rental income based on the actual turnover
of the tenant).
? In considering the re-letting of expiring leases, the property managers and asset managers considered the
expiring rental, the market related rental in the area in which the property is located and the opportunities for re-
letting. A vacancy period is included if it is assumed that the tenant will not renew. Provision has also been
included for letting commissions, void costs, vacant service charges and tenant installation costs.
? Leases expiring during the period have been forecast on a lease by lease basis. In circumstances where
discussion with the lessee has proven positive, these are forecast to be re-let at current market rates.
? Property operating expenses have been forecast based on management?s review of historical expenditure and
discussions with the property and asset managers.
? Material expenditures are bank finance costs (?11.1m), management company staff costs (?4.7m), and non-
recoverable property operating costs (?4.2m).
? The properties have been fair market valued at 31 March 2015 ("FY15").
? No fair value adjustments to the properties have been provided for in the profit forecast as management does
not consider it useful to predict valuation movements.
? The profit forecast has been compiled utilising the accounting policies of Stenprop as set out in Stenprop's
audited annual financial statements for the year ended 31 March 2015, which are available on the Stenprop
website, www.stenprop.com/investor-relations.
The forecast statement of comprehensive income incorporates the following material assumptions in respect of
revenue and expenses that cannot be influenced by the directors:
? There will be no unforeseen economic factors that will affect the lessees' ability to meet their commitments in
terms of existing lease agreements.
? Foreign exchange rates have been assumed as follows: GBP:EUR 1:1.42 and CHF:EUR 1:0.96.
? Cost inflation assumptions vary by country and region, and are between 0% and 1.5%.
? No changes to taxation rates or regulations have been assumed in any of the jurisdictions.
? No assumptions for movements in interest rates have been made. The interest rates on Stenprop's borrowings
are generally fixed (including via the use of interest rate derivatives).
The forecast differs from the proforma normalised FY15 financial results (?FY15 Proforma?) (published in the audited
annual financial statement on 11 June 2015) by more than 15% as a result of the following:
? Net rental income, non-recoverable property operating costs, fair value movement in joint ventures and taxation
are all forecast to increase by greater than 15% from the FY15 Proforma as a result of the acquisitions of
Trafalgar Court, Argyll Street, Hermann Quartier and Victoria Centre properties during the financial year ended
31 March 2016.
? Management fee income is forecast to be more than 15% higher than FY15 Proforma due to the internalisation of
the management companies in October 2014.
? Income from associates is expected to be more than 15% higher than FY15 Proforma, as the Nova Eventis
shopping centre suffered a fall in value of ?5 million in FY15, which is not forecast to be repeated in FY16.
? Management company staff costs are forecast to be more than 15% higher than FY15 Proforma due to the
internalisation of the management companies in October 2014.
? Net gain from the fair value of financial liabilities is expected to be more than 15% higher than FY15, as interest
rates (and rate expectations over the remaining term of the instruments) declined significantly in FY15 resulting
in Stenprop?s interest rate swaps moving further out of the money. As Stenprop's interest rate swaps approach
maturity they will move towards a zero value positively impacting the income statement.
14 August 2015
JSE sponsor
Java Capital
Bermuda Stock Exchange sponsor
Appleby Securities (Bermuda) Ltd
Reporting Accountants Deloitte & Touche
