DJ Abridged Unaudited consolidated results for six months ended 31 December 2024
Grit Real Estate Income Group (GR1T)
Abridged Unaudited consolidated results for six months ended 31 December 2024
14-Feb-2025 / 07:00 GMT/BST
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GRIT REAL ESTATE INCOME GROUP LIMITED
(Registered in Guernsey)
(Registration number: 68739)
LSE share code: GR1T
SEM share codes (dual currency trading): DEL.N0000 (USD) / DEL.C0000 (MUR)
ISIN: GG00BMDHST63
LEI: 21380084LCGHJRS8CN05
("Grit" or the "Company" or the "Group")
ABRIDGED UNAUDITED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
Grit Real Estate Income Group Limited, a leading Pan-African real estate company focused on investing in, developing and actively managing a diversified portfolio of assets underpinned by predominantly US Dollar and Euro denominated long-term leases with high quality multi-national tenants, today announces its results for the six months ended 31 December 2024.
Bronwyn Knight, Chief Executive Officer of Grit Real Estate Income Group Limited, commented:
"As part of the Group's journey to recovery, we progressed in our cost reduction programme, strengthened the balance sheet through active interest rate risk management and improved the portfolio across key metrics, underpinned by strong leasing and asset management efforts. Although several initiatives already implemented will only realise full value over the medium term, net operating income benefitted from an increased contribution from the Data Centres and Healthcare segments. Our portfolio remains defensive by geographic and asset class diversification, with a significant percentage of income under long-term hard currency leases. This provides a foundation for income generation and a resilient platform from which to capitalise on growth opportunities through active management and sector-focused development structures."
Financial and Portfolio highlights
Restated
6 Months ended
6 Months ended Increase/ Decrease
31 Dec 2024
31 Dec 2023
Property portfolio net operating income (proportionate8) USUSD35.1m USUSD31.1m +13.0%
EPRA cost ratio (including associates) 2 14.2% 14.7% -0.5%
Net finance costs USUSD29.8m USUSD21.5m +38.6%
Weighted cost of debt 9.39% 9.87% -0.45%
Revenue earned from multinational tenants6 85.4% 80.0% +5.4%
Income produced in hard currency7 94.2% 95.4% -1.2%
As at 31 Dec 2024 As at 30 Jun 2024 Increase/ Decrease
EPRA NRV per share1 USUSD50.7cps USUSD57.9cps -12.4%
Group LTV 51.36% 52.33% -0.97%
Total Income Producing Assets3 USUSD956.5m USUSD971.2m -1.51%
Contractual rental collected 92.1% 91.1% +1.0%
WALE4 5.21 years 5.23 years -0.02 years
EPRA portfolio occupancy rate5 90.62% 89.77% +0.85%
Grit proportionately owned lettable area ("GLA") 353,340m2 386,538m2 -33,198m2
Weighted average annual contracted rent escalations 2.67% 2.84% -0.17%
Notes
1 Explanations of how EPRA figures and Distributable earnings per share are derived from IFRS are shown in
note 18.
2 Based on EPRA cost to income ratio calculation methodology which includes the proportionately
consolidated effects of associates and joint ventures.
Includes controlled Investment properties with Subsidiaries, Investment Property owned by Joint Ventures,
3 deposits paid on Investment properties and other investments, property plant and equipment, intangibles,
and related party loans.
4 Weighted average lease expiry ("WALE").
5 Property occupancy rate based on EPRA calculation methodology - Includes joint ventures.
6 Forbes 2000, Other Global and pan African tenants.
7 Hard (USUSD and EUR) or pegged currency rental income.
Property net operating income ("NOI") is an Alternative Performance Measure ("APM") and is derived from
8 IFRS revenue and NOI adjusted for the results of joint ventures. A full reconciliation is provided in the
financial review section below.
Summarised results commentary:
We benefit from having built a business focused on quality real estate assets with strong ESG credentials
and long term leases to a resilient and diverse customer base that comprises more than 85% of strong
multinational and investment grade tenants. The impact of the consolidation of GREA, which was fully
consolidated with effect from 30 November 2023, along with contractual lease escalations, which are
. predominantly inflation-linked, and new assets, have contributed to growth in NOI during this reporting
period and into the future. We now have 33 assets across 7 sectors with 94.2% of our leases in hard
currency providing a strong foundation to our income generation and a resilient platform from which to
pursue growth opportunities through active management and sector focused development substructures.
EPRA net reinstatement value ("NRV") per share of USUSD50.7 cents per share (30 June 2024: USUSD57.9 cents
. per share), is predominantly driven by a 2.3% decrease in the fair value adjustment made on investment
properties during the period. This culminated in an overall decrease of 4.5% in the Group's proportionate
share of property values.
. Property portfolio net operating income (Grit proportionate ownership) increased 13.0%, which is largely
driven by the impact of the full period inclusion of the consolidated results of GREA post the
acquisition of this business on the 30th of November 2023.
Group administrative costs increased by 4.1% in the six months to 31 December 2024, mainly as a result of
the impact of the consolidation of APDM. Excluding the impact of APDM and considering that the cost
related to APDM will be capitalised to development projects when these resume in 2025, the administrative
. costs on a like-for-like comparable basis reduced by 19.1% from the comparative period. As a result,
administrative expenses as a percentage of total income-producing assets declined to 1.5% as of 31
December 2024, down from 1.85% as at 30 June 2024. This demonstrates strong progress in cost reduction
initiatives, notwithstanding the smaller asset base following negative fair value adjustments. The Group
continues to advance towards its strategic objective of reducing administrative costs as a percentage of
total income-producing assets to 1.25% over the short term and ultimately 1% over the medium term.
Although the Group WACD decreased to 9.39% from 9.87% in the comparative period, finance costs increased
by USUSD10.1 million (44.6%) during the period under review as compared to the period ended 31 December
. 2024. The increase in finance costs is largely driven by the full period impact of increased borrowing
levels following the consolidation of GREA, which were partially offset by the settlement of debt from
the proceeds of the GREA capital raise that were recovered during the period.The Group has increased the
nominal value of interest rate hedges that amounted to USUSD200 million at the end of June 2024 to USUSD235
million as at 31 December 2024. The Group's focus remain on debt reduction over the foreseeable future
through asset recycling in non-core sectors.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Grit Real Estate Income Group Limited
Bronwyn Knight, Chief Executive Officer +230 269 7090
Morne Reinders, Investor Relations +27 82 480 4541
Cavendish Capital Markets Limited - UK Financial Adviser
Tunga Chigovanyika/ Edward Whiley (Corporate Finance) +44 20 7220 5000
Justin Zawoda-Martin / Daniel Balabanoff / Pauline Tribe (Sales)
+44 20 3772 4697
Perigeum Capital Ltd - SEM Authorised Representative and Sponsor
Shamin A. Sookia +230 402 0894
Darren M. Chinasamy +230 402 0885
Capital Markets Brokers Ltd - Mauritian Sponsoring Broker
Elodie Lan Hun Kuen +230 402 0280
NOTES:
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Grit Real Estate Income Group Limited is the leading Pan-African real estate company focused on investing in, developing and actively managing a diversified portfolio of assets in carefully selected African countries (excluding South Africa). These high-quality assets are underpinned by predominantly USUSD 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 holds its primary listing on the Main Market of the London Stock Exchange (LSE: GR1T and a secondary listing on the Stock Exchange of Mauritius (SEM: DEL.N0000).
Further information on the Company is available at www.grit.group.
Directors:
Peter Todd (Chairman), Bronwyn Knight (Chief Executive Officer) *, Gareth Schnehage (Chief Financial Officer) *, David Love+, Catherine McIlraith+, Cross Kgosidiile, Lynette Finlay + and Nigel Nunoo+.
(* Executive Director) (+ independent Non-Executive Director)
Company secretary: Intercontinental Fund Services Limited
Corporate service provider: Mourant Governance Services (Guernsey) Limited
Registered office address: PO Box 186, Royal Chambers, St Julian's Avenue, St Peter Port, Guernsey GY1 4HP
Registrar and transfer agent (Mauritius): Onelink Ltd
SEM authorised representative and sponsor: Perigeum Capital Ltd
UK Transfer secretary: Link Market Services Limited
Mauritian Sponsoring Broker: Capital Markets Brokers Ltd
This notice is issued pursuant to the FCA Listing Rules, SEM Listing Rules 15.24 and 15.44 and the Mauritian Securities Act 2005. The Board of the Company accepts full responsibility for the accuracy of the information contained in this communiqué.
A Company presentation for all investors and analysts via live webcast and conference call
The Company will host a live webcast and conference call on Friday, 14 February 2025 at 11:30 Mauritius time / 09:30 SA time / 07:30 UK time via the Investor Meet Company platform, with the presentation being open to all existing and potential shareholders
.
Pre-registration is advised via: https://www.investormeetcompany.com/grit-real-estate-income-group-limited/ register-investor
Investors who already follow Grit Real Estate Income Group Limited on the Investor Meet Company platform will automatically be invited. A playback will be accessible on-demand within 48 hours via the Company website: https:// grit.group/financial-results/
CHIEF EXECUTIVE OFFICER'S STATEMENT
Introduction
Grit is a leading, woman-led real estate platform, delivering property investment and associated real estate services across Africa. We recognise our responsibility in shaping the built environment for long-term sustainability, with a strong focus on impact, energy efficiency, and carbon reduction across our portfolio. In addition, we remain committed to diversity and empowerment, with women holding over 40% of leadership positions, and we continue to make a meaningful difference through extensive community engagement and social impact initiatives across the continent.
Over the past 24 months, the Board introduced and remains focused on the Group's Grit 2.0 strategy, with its capital allocation strategy, cost reduction drive, active interest rate management and portfolio optimisation increasingly reflected in the composition of Group net operating income, with earnings from diplomatic housing, healthcare, and data centres replacing those from previously disposed assets in hospitality and LLR.
Operational review
The Group's journey was challenged by various exogenous factors during the reporting period, including a higher for longer interest rate environment, local currency declines, rental reversions as well as geopolitical headwinds, particularly in Mozambique.
These challenges impacted our net asset value, with EPRA NRV per share contracting by 12.4% to USUSD50.70 cents. Delays in development projects adversely affected revenue generation and portfolio growth. Notwithstanding these challenges, NOI from ongoing operations grew by 13.0% to USUSD35.1 million (H1FY24: USUSD31.1 million) in the six months to December 2024, driven predominantly by the positive contribution arising from the consolidation of GREA and supported by inflation-linked contractual lease escalations.
Rental collections improved to 92.1% from 91.1% at 30 June 2024, whilst 94% of the Group's revenue is earned in hard currency or from hard currency-linked long-term leases with mainly multinational, blue-chip tenants. Portfolio occupancy, excluding vacancies at ENEO CCI and VDE, remained stable at 94.5%.
The Group's retail portfolio continued to experience value compression, driven mainly by Anfaplace Mall, whilst the renegotiation of long-term leases on the Group's Vodacom (5 years) and Imperial (10 years) assets in Mozambique and Kenya impacted valuations in the office and Industrial segments respectively. Considering the prevailing macro-economic environment, the Group believes that the benefits of a more stable weighted average lease expiry ("WALE)" outweigh the impact of rental reversions from these contract negotiations.
The valuation movement in the Medical segment is as a result of the reclassification of the Group's Artemis Curepipe Hospital asset to "non-current asset held for sale" as part of the Group's asset recycling initiatives.
Cost containment
On a like-for-like basis, administrative costs decreased by 19.1% compared to the prior period. As a result, administrative expenses as a percentage of total income-producing assets declined to 1.5% as of 31 December 2024, down from 1.85% as at 30 June 2024. This demonstrates strong progress in cost reduction initiatives, notwithstanding the smaller asset base following negative fair value adjustments. The Group continues to advance towards its strategic objective of reducing administrative costs as a percentage of total income-producing assets to 1.25% over the short term and ultimately to 1% over the medium term.
Stakeholders are further referred to the AGM Business Update published on RNS on 13 December 2024 for more information on the Group's strategic outsourcing agreement with Broll Property Group, who will assume responsibility for the property and facilities management of Grit's assets valued at USUSD754 million as at 31 December 2024. This partnership is expected to deliver annual cost savings of approximately USUSD1 million and streamline operational efficiencies, enabling the Group to focus on its core expertise in impact real estate development, strategic asset management and retaining key tenant relationships. The effective date of this partnership will be 1 February 2025, preceded by a seamless transition phase to ensure uninterrupted operations.
Finance costs
Net finance costs increased substantially by 38.6% to USUSD29.8 million, mainly due to the full period impact of finance costs associated with the GREA acquisition being included in the period ended 31 December 2024, whilst the comparative period only included 1 month's impact following the consolidation of GREA on 30 November 2023. Annual contractual lease escalations over the portfolio that are mostly linked to US consumer price inflation partially shielded the increase in ongoing funding costs. Despite the increase in net finance costs, the weighted cost of debt reduced by 0.45% to 9.39%, supporting a reduction in the loan-to-value ratio of 0.97% to 51.36%. During the reporting period, the Group increased its hedging positions to 74.1% of its USUSD SOFR exposure. Further hedging and capital allocation, particularly from disposals, is expected to improve the Group's interest cover ratio (ICR) over the medium term.
Asset recycling
The Group continues to make measured progress in its asset recycling initiatives with the disposal of two assets valued at approximately US75 million currently underway. The reclassification of the Artemis Curepipe Hospital as "held for sale" temporarily impacted on the Group's reported asset yield, however it is expected that the yield will continue to increase in line with Grit's stated target of approximately 9% as assets producing below the required yield threshold are disposed of.
Update on political unrest in Mozambique
Mozambique experienced several weeks of political unrest following a disputed national election. At the time of writing, the situation remained calm, with limited reports of violence. Grit's foremost priority remains the safety of its staff, tenants and assets - no injuries or damage to the Group's assets have been reported. The Board and Management continues to monitor the situation closely, drawing on the Group's well-established Family of Partnerships in the country, with all contingencies remaining in effect, including police and military presence at Zimpeto Square. Political Risk Insurance against loss of income as a result of the unrest remains in place.
Update on the 2024 Annual General Meeting vote
At the Annual General Meeting of the Company held on 13 December 2024, ordinary resolutions number 12 and 13, received the support of 69.68% and 70.27% respectively of shareholder votes. During January 2025 the Company invited shareholders, including dissenting shareholders, to discuss this voting outcome to understand their position and perspectives. The perspectives shared by of our shareholders are highly valued and have been reported to the Board.
Changes to the Board of Directors
The Board welcomes Mr Nigel Nunoo, who was appointed as the Group's incoming independent Non-Executive Chairman. Mr Nunoo is expected to assume the position of Chairman following the retirement of Mr Peter Todd later this calendar year, having reached the maximum tenure in terms of the Group's governance policies.
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As announced in the Integrated Annual Report for the year ended 30 June 2024, Mr Jonathan "Johnny" Crichton sadly passed away in September 2024. Lynette Finlay, Independent Non-Executive Director, has been appointed as a Member of the Audit Committee and Nigel Nunoo, Independent Non-Executive Director, appointed as a Member and Chair of the Risk Committee.
Outlook
The improvement of total returns to shareholders over the medium term remains a priority through the following key actions:
-- Continued focus on NOI growth and strong cash collections from the high-quality property portfolioincluding refocusing the portfolio towards resilient and impact sectors.
-- A rationalisation of shared functions post the acquisition of GREA and APDM and assessment of the optimalstructure of corporate head office functions going forward.
-- A USUSD4.1million annualised cost savings in net finance costs from reduction in debt, refinancing existingfacilities and inclusion of GREA assets into the existing syndicated facility.
-- The execution of development pipeline by GREA consistent with the Grit 2.0 strategy and generatingadditional income from property related services.
The uncertain political landscape in the USA, particularly impacting foreign trade policy and aid, remains a matter of concern and is closely monitored. Notwithstanding these external challenges, the Group remains on its growth trajectory, however, this remains susceptible to interest rate movements which are outside the Group's control. In line with its Grit 2.0 strategy, the Board will continue to target the reduction of administrative costs, lower LTV's and the weighted average cost of debt to defend and grow its distributable earnings and NAV growth
Presentation of financial results
The abridged consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the IASB. Alternative performance measures (APMs) have also been provided to supplement the IFRS financial statements as the Directors believe that this adds meaningful insight into the operations of the Group and how the Group is managed. European Public Real Estate Association ("EPRA") Best Practice Recommendations have been adopted widely throughout this report and are used within the business when considering the operational performance of our properties. Full reconciliations between IFRS and EPRA figures are provided in notes 18a to 18b. Other APMs used are also reconciled below.
"Grit Proportionate Interest" income statement, presented below, is a management measure to assess business performance and is considered meaningful in the interpretation of the financial results. Grit Proportionate Interest Income Statement (including "Distributable Earnings") are alternative performance measures. In the absence of the requirement for Distributable Reserves in the domicile countries of the group, Distributable Earnings is utilised to determine the maximum amount of operational earnings that would be available for distribution as dividends to shareholders in any financial period. This factors the various company specific nuances of operating across a number of diverse jurisdictions across Africa and the investments' legal structures of externalising cash from the various regions. The IFRS statement of comprehensive income is adjusted for the component income statement line items of properties held in joint ventures and associates. This measure, in conjunction with adjustments for non-controlling interest (for properties consolidated by the group, but part owned by minority partners), form the basis of the Group's distributable earnings build up, which is alternatively shown in Note 18b - Distributable Earnings.
Although the NOI performance of the Group have improved on a year-on-year basis and administrative costs are trending downward as part of the cost savings initiatives that the Group is undertaking, the distributable earnings for the six months ended 31 December 2024 was negatively impacted by finance costs that remain high due to the high interest rate environment that exist globally. This contributed to a distributable loss being incurred for the six months ended 31 December 2024 amounting to USUSD4.6 million as compared to a distributable earning of USUSD6.0 million generated during the six months ended 31 December 2023.
IFRS Income statement to IFRS Extracted from GRIT Proportionate Split GRIT YTD
distribution reconciliation YTD Associates Income statement NCI Economic Distributable
Interest earnings
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000
Gross rental income 38,987 3,605 42,592 (12,796) 29,796 29,546
Property operating expenses (6,826) (681) (7,507) 1,867 (5,640) (5,626)
Net operating profit 32,161 2,924 35,085 (10,929) 24,156 23,920
Other income 142 - 142 (265) (123) (92)
Administration expenses (9,264) (284) (9,548) 1,484 (8, 064) (7,744)
Net impairment charge on (386) - (386) 40 (346) -
financial assets
Profit / (loss) from operations 22,653 2,640 25,293 (9,670) 15, 623 16,084
Fair value adjustment on (19,528) (135) (19,663) 4,677 (14,986) -
investment properties
Fair value adjustment on other 20 - 20 (13) 7 -
financial asset
Fair value adjustment on (1,511) - (1,511) (31) (1,542) -
derivative financial instruments
Share-based payment - - - - - -
Share of profits from associates 602 (602) - - - -
Gain on derecognition of loans - - - - - -
and other receivables
Foreign currency (losses) / gains 4,654 (85) 4,569 (2,578) 1,991 -
Other transaction costs (3,970) - (3,970) 708 (3,262) -
Profit / (loss) before interest 2,920 1,818 4,738 (6,907) (2,169) 16,084
and taxation
Interest income 2,935 - 2,935 (801) 2,134 2,134
Finance costs - Intercompany - - - 1,477 1,477 1,477
Finance charges (32,832) (1,821) (34,653) 5,643 (29,010) (25,718)
Loss before taxation (26,977) (3) (26,980) (588) (27,568) (6,023)
Current tax (499) (156) (655) 132 (523) (526)
Deferred tax 2,036 (2) 2,034 (197) 1,837 -
Loss after taxation (25,440) (161) (25,601) (653) (26,254) (6,549)
NCI of associates through OCI - 161 161 (161) - -
Total comprehensive loss (25,440) - (25,440) (814) (26,254) (6,549)
VAT credits 1,993
Distributable loss (4,556)
Financial and Portfolio summary
The Grit Proportionate Income Statement is further split to produce a Grit Property Portfolio Revenue2 and NOI 2 analysis by sector. Grit's Property Portfolio Revenue has increased 14.9% from the prior year with the change in ownership in GREA from 51.48% to 54.22% with effect from 1 November 2023 and consolidation of GREA with effect from 30 November 2023. Additionally, the impact of ENEO CCI being brought into commercial use during the half year period, post the consolidation of GREA, contributed to growth.
Revenue Revenue
6 months 6 months
Revenue ended 31 Revenue Revenue ended 31 Revenue
December Revenue December
Six 2024 6 months 6 months 2023 6 months Year-on-year Year-on-year Rental
months ended 31 6 months ended 31 ended 31 change in change in Collection1
Sector ended 31 Step up December ended 31 December Step up December 2023
December from joint 2024 December 2023 from joint Revenue Revenue 31December
2024 venture to 2023 venture to Year-on-year reported comparable 2024
subsidiary Year-on-year Change in subsidiary comparable basis
Reported and GREA comparable Reported ownership and GREA basis
associates basis 3 associates
to to
associates associates
4 4
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 % % %
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Retail 10,612 135 10,477 10,445 11 186 10,248 1.6% 2.2% 97.7%
Hospitality 3,111 - 3,111 2,977 - - 2,977 4.5% 4.5% 103.7%
Office 11,103 1,134 9,969 9,396 22 374 9,000 18.2% 10.8% 88.1%
Light 2,920 94 2,826 3,049 (2) (35) 3,086 (4.2%) (8.4%) 57.69%
industrial
Corp 12,053 4,139 7,914 8,822 760 - 8,062 36.6% (1.8%) 94.63%
Accommodation
Medical 1,242 500 742 748 10 160 578 66.1% 28.6% 84.01%
Data Centre 1,741 732 1,009 784 6 99 679 121.3% 48.9% 121.19%
Corporate (190) - (190) 841 - - 841 (122.8%) (122.7%) 0.00%
TOTAL 42,592 6,734 35,858 37,062 807 784 35,471 14.9% 1.1% 92.26%
Subsidiaries 38,987 6,734 32,253 30,142 780 499 28,863 29.3% 48.5% -
Associates 3,605 - 3,605 6,920 17 285 6,618 (47.9%) (58.3%) -
TOTAL 42,592 6,734 35,858 37,062 807 784 35,471 14.9% 1.1% -
NOI
6 months
ended 31 NOI NOI NOI
NOI December NOI NOI
2024 6 months 6 months 6 months Year-on-year
6 months ended 31 6 months 6 months ended 31 ended 31 Year-on-year change in
ended 31 Step up December ended 31 ended 31 December December change in
Sector December from joint 2024 December December 2023 2023 NOI
2024 venture to 2023 2023 NOI Reported comparable
subsidiary Year-on-year Step up from Year-on-year basis
Reported and GREA comparable Reported Change in associates comparable
associates basis ownership3 to basis
to subsidiaries
associates and GREA
4 associates
to
associates4
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 % %
USUSD'000
Retail 6,812 (2) 6,814 6,771 5 86 6,680 0.6% 2.0%
Hospitality 3,103 - 3,103 2,977 - - 2,977 4.2% 4.2%
Office 9,121 854 8,267 8,139 19 350 7,770 12.0% 6.4%
Light 2,715 3 2,712 2,918 (2) (39) 2,959 (7.0%) (8.4%)
industrial
Corp 10,381 3,727 6,655 7,498 716 - 6,782 38.5% (1.9%)
Accommoda-tion
Medical 1,225 492 733 744 10 160 574 64.6% 27.4%
Data Centre 1,724 728 996 784 6 99 679 120.1% 47.0%
Corporate 4 - 4 1,232 - - 1,232 (99.7%) (99.7%)
TOTAL 35,085 5,800 29,285 31,063 754 656 32,175 13.0% (1.3%)
Subsidiaries 32,161 5,071 27,090 24,913 504 279 28,445 29.1% 11.8%
Associates 2,924 729 2,195 6,150 250 377 3,730 (52.5%) (60.4%)
Total 35,085 5,800 29,285 31,063 754 656 32,175 13.0% (1.3%)
Notes
1 Rental Collections represents the amount of cash received as a percentage of contractual income. Contractual income is stated before the effects of any rental deferment and concessions provided to tenants.
2 Grit adjusted property portfolio Revenue, Operating expenses and Net Operating Income are unaudited alternative performance measurements.
3 Change in ownership relate to the impact of the change in the Group's proportionate share in GREA from 51.48% to 54.22% during HY2024.
4 On 31 December 2023 the Group obtained control over GREA and APDM and consolidated the results of these entities within effect from this day. Due to the consolidation of GREA the GREA associates became associates of the Group. The impact of these changes are reflected in these columns.
Retail sector: The retail sector has seen good leasing activity and reduced vacancies in Buffalo Mall in Kenya and Mall De Tete in Mozambique.
Hospitality sector: The hospitality sector has shown an improvement, largely driven by Tamassa Resort variable rental showing a good recovery in the hospitality sector.
Office sector: The office sector assets benefited from the completion of the ENEO project in Kenya that were brought into commercial use during HY2025. In April 2024, Exxon has renewed their lease in Commodity House Phase 2, our office building in Mozambique, at an escalated rental. The Ghana offices have also seen good leasing activity with reduced vacancies.
Light Industrial: The light Industrial sector results were largely impacted by new long-term lease with Imperial at a reduced rate which has been re-aligned to market rentals.
Corporate accommodation: The corporate accommodation sector has seen a slight drop mainly driven by renewal at reduced rentals in Mozambique assets, Acacia Estates and VDE Housing Compound.
Bora Africa (Light Industrial) & Data Centre sectors: Data Centre asset has benefited from the straight -line rental income adjustments in HY2025.
Healthcare sector: Healthcare assets have increased mainly due to high average HICP benefiting the escalation and straight -line rental income adjustments.
Cost control
The administrative expenses reported under IFRS for the six months ended 31 December 2024 increased by 4.1% as compared to the comparative period mainly due to USUSD2.0 million of costs relating to the project development arm of the Group (APDM) that was not included in the administrative expenses for the six months ended 31 December 2023 (APDM consolidated with effect from 30 November 2023). APDM administration expenses form part of development costs for projects undertaken by the Group. With limited development projects being undertaken during the first six months of the financial year, the Group absorbed the costs related to APDM under administration expenses. By excluding the impact of administrative expenses related to the development function of the Group, the administrative expenses decreased by 19.1% from the previous year on a like for like basis. The administrative expense as a percentage of total income producing assets decreased to 1.50% from 1.92% at 31 December 2023. The Group remains committed to reducing administrative costs to 1.25% of total income producing assets over the short term and to 1% over the medium term through various cost optimisation initiatives that are being executed.
31 December Restated
Administrative expenses 2024 31 December Movement Move-ment
2023
USUSD'000 USUSD'000 USUSD'000 %
Total administrative expenses reported under IFRS 9,264 8,895 369 4.1%
Less: Administrative expenses related to APDM not capitalised (2,070) - (2,070) (100.0%)
Total ongoing administrative expenses - Like for Like basis 7,194 8,895 (1,701) (19.1%)
Administrative expenses reported under IFRS as % of total income 1.94% 1.92% 0.02% 1.04%
producing assets
Ongoing administrative expense - like for like basis as % of total 1.50% 1.92% (0.42%) (21.8%)
income producing assets
Material finance cost increases
Global interest rates reduced marginally during the six months ended 31 December 2024, which, along with the impact of interest rate derivatives utilised by the Group, contributed to a decrease in the weighted-average cost of debt at 31 December 2024 to 9.39% as compared to 10.00% at 30 June 2024 and 9.87% at 31 December 2023. Despite the decrease in cost of debt the net finance costs of the Group increased by USUSD8.3 million during the six months ended 31 December 2024 as compared to the preceeding year. The increase in finance charges is largely driven by the full period impact of finance costs associated with the GREA acquisition being included in the period ended 31 December 2024, whilst the comparative period only included 1 month's impact following the consolidation of GREA on 30 November 2023. Annual contractual lease escalations over the portfolio that are mostly linked to US consumer price inflation partially shield the increase in ongoing funding costs.
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DJ Abridged Unaudited consolidated results for six -5-
The reported net finance charge disclosed below includes an amortisation of loan issuance costs and the impact of interest rate derivatives utilised.
Restated
Net finance costs 31 December 2024 Movement Movement
31 December 2023
USUSD'000 USUSD'000 USUSD'000 %
Finance costs as per statement of profit or loss 32,832 22,709 10,123 44.6%
Less: Interest income as per statement of profit or loss (2,935) (1,115) (1,820) 163.2%
Net finance costs - IFRS 29,897 21,594 8,303 38.5%
Interest rate risk exposure and management
The exposure to interest rate risk at 31 December 2024 is summarised below, and the table highlights the value of the Group's interest-bearing borrowings that are exposed to the base rates indicated:
Lender TOTAL SOFR EURIBOR PLR1 FIXED
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000
Standard Bank Group2 303,048 268,201 34,846 - -
NCBA Bank Kenya 30,424 30,424 - - -
Maubank Ltd 30,000 15,000 - - 15,000
Investec Group 26,404 - 26,404 - -
SBM Bank (Mauritius) Ltd 21,700 21,700 - - -
International Finance Corporation 16,100 16,100 - - -
Nedbank Group 15,620 15,620 - - -
ABSA Group 10,000 10,000 - - -
SBI (Mauritius) Ltd 9,500 9,500 - - -
Private Equity 6,633 - - - 6,633
Cooperative Bank of Oromia 4,495 - - - 4,495
Housing Finance Corporation 3,974 - - - 3,974
First National Bank 527 - - 527 -
AfrAsia Bank Ltd 8 - - 8 -
TOTAL EXPOSURE - IFRS 478,433 386,546 61,250 535 30,102
EXPOSURE % 100.0% 80.8% 12.8% 0.1% 6.3%
Notes
1 PLR - Local Banks' Prime lending rate
Interest rate risk mitigation
The Group utilises interest rate derivative instruments as well as back-to-back arrangements with joint venture partners to partially mitigate against the risk of rising interest rates. Taking this into consideration along with the impact of fixed intest rate instruments the Group is 74.1% hedged on its USUSD SOFR exposure, but remains largely unhedged to movements in EURIBOR and local bank prime lending rates in Mauritius and South Africa. The hedged position of the Group as at 31 December 2024 is detailed below:
TOTAL SOFR EURIBOR PLR1 FIXED
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000
Total exposure - IFRS 478,433 386,546 61,250 536 30,101
Less: Hedging instruments in place (235,332) (235,332) - - -
Less: Partner loans offsetting group exposure (21,034) (21,034) - - -
NET EXPOSURE (AFTER INTEREST RATE DERIVATIVES AND OTHER MITIGATING 222,067 130,180 61,250 536 30,101
INSTRUMENTS) - IFRS
Notes
1 PLR - Local Banks' Prime lending rate
Interest rate sensitivity
Management monitor and manages the business relative to the weighted average cost of debt ("WACD"), which is the net finance costs adjusted for the effects of interest rate derivative instruments that are in place as a percentage of the interest-bearing borrowings due at the reporting date. A sensitivity of the Group's expected WACD to further movements in the base rates are summarised below:
All debt WACD Movement vs current WACD Impact on finance costs vs current WACD 1
% bps USUSD'000
At 31 December 2024 (including hedges) 9.39%
+50bps 9.67% 28bps 1,485
+25bps 9.55% 17bps 882
-25bps 9.22% (16bps) (865)
-50bps 9.06% (33bps) (1,718)
-100bps 8.76% (63bps) (3,308)
Notes
1 Impact determined on interest-bearing borrowings on 31 December 2024 amounting to USUSD478.4 million.
Portfolio performance
During the six months ended 31 December 2024, income producing assets decreased by USUSD14.1 million (1.5%) as compared to 30 June 2024. The decrease in total income producing assets is due to fair value adjustments recognised on investment properties during the period that amounted to USUSD19.7 million (2.0%), which was partially offset by development, refurbishments and other movements on investment properties.
Composition of income producing assets 31 Dec 2024 30 Jun 2024
USUSD'm USUSD'm
Investment properties 753.8 792.4
Investment properties included within 'Investment in associates and joint ventures' 79.9 80.7
Investment properties included under non-current assets classified as held for sale 71.9 49.0
905.6 922.1
Deposits paid on investment properties 5.1 5.0
Other investments, property, plant & equipment, Intangibles & related party loans 45.8 44.1
Total income producing assets 956.5 971.2
Property valuations
Reported property values based on Grit's proportionate share of the total property portfolio (including joint ventures) decreased by 4.5% during the six months ended 31 December 2024. This decrease is primarily driven by negative fair value adjustments of USUSD19.7 million on the property portfolio (-2.3%), the impact of foreign exchange movements amounting to USUSD3.5 million (-0.4%) as well as the classification of the Artemis Curepipe Hospital as a non-current asset held for sale. This was offset by development, refurbishment and other movements amounting to USUSD6.6 million.
Fair value adjustments raised were largely impacted by rental reversions on key tenants that were concluded to secure longer term lease periods.
Property Property
Value Foreign Asset Developments and Other Fair value Value Total Valuation
Sector exchange recycling refurbishment movements movement Movement
30 Jun movement 31 Dec
2024 2024
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 %
Retail 214,395 (1,585) - - 456 (3,449) 209,817 (2.1%)
Hospitality 31,406 (859) - 1,751 (7) (720) 31,571 0.5%
Office 271,011 - - - 3,141 (11,372) 262,780 (3.0%)
Light 64,714 - - (439) 267 (2,561) 61,981 (4.2%)
industrial
Data Centres 28,500 - - - 468 (358) 28,610 0.4%
Healthcare 24,726 (1,011) (22,785) - (302) (628) - (100.0%)
Corporate 221,021 - - - 1,009 (575) 221,455 0.2%
Accommodation
GREA under 17,262 - - - 301 - 17,563 1.7%
construction
Other - - - - (15) - (15) -
TOTAL 873,035 (3,455) (22,785) 1,312 5,318 (19,663) 833,758 (4.5%)
Subsidiaries 792,351 (2,770) (22,785) 1,312 5,196 (19,528) 753,776 (4.9%)
Associates 80,684 (685) - - 122 (135) 79,982 (0.9%)
TOTAL 873,035 (3,455) (22,785) 1,312 5,318 (19,663) 833,758 (4.5%)
Interest-bearing borrowings movements
As of 31 December 2024, the Group's interest-bearing borrowings totaled USUSD476.3 million, a decrease from USUSD501.1 million as of 30 June 2024. This reduction is primarily due to the settlement of certain borrowing facilities following the recapitalization of Gateway Real Estate Africa (GREA). Additionally, USUSD10.4 million has been reclassified to liabilities held for sale, as St Helene, the beneficial owner of Artemis Curepipe Hospital, now meets the criteria for such classification.
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DJ Abridged Unaudited consolidated results for six -6-
The Group also recognized an unrealized foreign exchange gain of USUSD5.6 million on its facility with Bank of Oromia in Ethiopia. This gain is attributed to the significant depreciation of the Ethiopian birr against the US dollar during the reporting period. During the six months period ended 31 December 2024, the Ethiopian Birr has depreciated by approximately 53% against the USUSD.
As at As at
Movement in reported interest-bearing borrowings for the period (subsidiaries)
31 Dec 2024 30 Jun 2024
USUSD'000 USUSD'000
Balance at the beginning of the period 501,164 396,735
Proceeds of interest bearing-borrowings 51,314 79,075
Loan acquired through asset acquisition - 10,770
Loan acquired through business combination - 88,240
Reclassify to held for sale disposal group (10,425) (37,066)
Loan issue costs (4,078) (2,658)
Amortisation of loan issue costs 2,712 3,539
Foreign currency translation differences (7,003) (1,612)
Interest accrued 29,615 49,510
Interest paid during the year (30,333) (48,453)
Debt settled during the year (55,409) (36,916)
As at period end 477,557 501,164
The following debt transactions were concluded during the period under review:
. A total facility of USUSD30.0 million was received from MauBank Ltd for Grit Services Limited and Grit Real Estate Income Group Limited.
. A faclity of c.USUSD0.56 million was received from First National Bank during the period for the acquisition of Parc Nicol.
. A facility of USUSD9.5 million was received in Gateway Real Estate Africa from SBI (Mauritius) Ltd.
. Partial settlement of the SBSA facility linked to Zambian Property Holdings Limited amounting to USUSD7.5 million.
. Partial settlement of the SBSA corporate facility held by Gateway Real Estate Africa amounting to USUSD18.0 million.
. SBM Bank (Mauritius) Ltd facility held by GD (Mauritius) Hospitality Investments Ltd of USUSD10.0 million was settled during the period.
. Partial settlement of the Investec facility linked to AnfaPlace Mall amounting to c.USUSD3.2 million.
For more meaningful analysis, a further breakdown is provided below to better reflect debt related to non-consolidated associates and joint ventures. As at 31 December 2024, the Group had a total of USUSD499.6 million in interest-bearing borrowings outstanding, comprised of USUSD478.4 million in subsidiaries (as reported in IFRS balance sheet) and USUSD21.2 million proportionately consolidated and held within its joint ventures.
31 December 2024 30 June 2024
Debt in Debt in joint Total Debt in Debt in joint Total
Subsidiaries ventures Subsidiaries ventures
USD'000 USD'000 USD'000 % USD'000 USD'000 USD'000 %
Standard Bank Group1 303,048 3,750 306,798 61.4% 334,358 7,500 341,858 65.1%
NCBA Bank Kenya 30,424 - 30,424 6.1% 30,587 - 30,587 5.8%
MauBank Ltd 30,000 - 30,000 6.0% - - - 0.0%
Investec Group 26,404 - 26,404 5.3% 30,288 - 30,288 5.8%
SBM Bank (Mauritius) Ltd 21,700 - 21,700 4.3% 38,132 - 38,132 7.3%
International Finance 16,100 - 16,100 3.2% 16,100 - 16,100 3.1%
Corporation
Nedbank Group 15,620 - 15,620 3.1% 15,400 - 15,400 2.9%
ABSA Group 10,000 17,500 27,500 5.5% 10,000 17,500 27,500 5.2%
SBI (Mauritius) Ltd 9,500 - 9,500 1.9% 5,408 - 5,408 1.0%
Private Equity 6,633 - 6,633 1.3% 5,046 - 5,046 1.0%
Cooperative Bank of 4,495 - 4,495 0.9% 10,491 - 10,491 2.0%
Oromia
Housing Finance 3,974 - 3,974 0.8% 4,131 - 4,131 0.8%
Corporation
First National Bank 527 - 527 0.1% - - - 0.0%
Afrasia Bank Ltd 8 - 8 0.0% 15 - 15 0.0%
TOTAL BANK DEBT 478,433 21,250 499,683 100.0% 499,956 25,000 524,956 100.00%
Interest accrued 8,870 9,588
Unamortised loan issue (9,746) (8,380)
costs
As at 30 Dec 477,557 501,164
Notes
1 The facility held by the Group with Stanbic Bank has been aggregated with those of the Standard Bank Group. As of 31 December 2024, the total interest-bearing borrowings with Stanbic Bank amounted to USUSD 45.1 million (30 June 2024: USUSD 46.4 million).
Net Asset Value and EPRA Net Realisable Value
Further reconciliations and details of EPRA earnings per share and other metrics are provided in notes 18a to 18b.
NET REINSTATEMENT VALUE ("NRV") EVOLUTION USUSD'000 USUSD cps
June 2024 as reported - IFRS NRV 211,938 44.0
Financial instruments 26,742 5.5
Deferred tax in relation to fair value gain on investment properties 40,437 8.4
EPRA NRV at 30 Jun 2024 279,117 57.9
Portfolio valuations attributable to subsidiaries (19,528) (4.1)
Portfolio valuations attributable to joint ventures (135) (0.0)
Other fair value adjustments (1,491) (0.3)
Transactions with non-controlling interests (3,513) (0.7)
Other non-cash items (including non-controlling interest) (2,671) (0.6)
Cash losses (6,549) (1.4)
Movement in Foreign Currency Translation reserve (2,480) (0.5)
Coupon paid on preference dividends through retained earnings (2,751) (0.6)
Other equity movements (86) (0.0)
EPRA NRV before dilution 239,913 49.7
Effect of treasury shares - 1.0
EPRA NRV at 31 December 2024 239,913 50.7
Deferred tax in relation to fair value gain on investment properties (35,187) (7.4)
Financial instruments (26,494) (5.6)
IFRS NRV at 31 Dec 2024 178,232 37.7
Dividend
No interim dividend has been declared for the six-month period ending 31 December 2024.
Bronwyn Knight Chief Executive Officer
14 February 2025
PRINCIPAL RISKS AND UNCERTAINTIES
Grit has a detailed risk management framework in place that is reviewed annually and duly approved by the Risk Committee and the Board. Through this risk management framework, the Company has developed and implemented appropriate frameworks and effective processes for the sound management of risk.
The principal risks and uncertainties facing the Group as at 30 June 2024 are set out on pages 80 to 85 of the 2024 Integrated Annual Report together with the respective mitigating actions and potential consequences to the Group's performance in terms of achieving its objectives. These principal risks are not an exhaustive list of all risks facing the Group but are a snapshot of the Company's main risk profile as at year end.
The Board has reviewed the principal risks and existing mitigating actions in the context of the second half of the current financial year. The Board believes there has been no material change to the risk categories and are satisfied that the existing mitigation actions remain appropriate to manage them.
STATEMENT OF DIRECTORS RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS
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DJ Abridged Unaudited consolidated results for six -7-
The directors confirm that the abridged consolidated half year financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the International Accounting Standards Board ("IASB") and that the half year management report includes a fair review of the information required by the Disclosure Guidance and Transparency Rules ("DTR") 4.2.7R and DTR 4.2.8R, namely:
Important events that have occurred during the first six months and their impact on the abridged set of
. half year unaudited financial statements, and a description of the principal risks and uncertainties for
the remaining six months of the financial year; and
. Material related party transactions in the first six months and a fair review of any material changes in
the related party transactions described in the last Annual Report.
The maintenance and integrity of the Grit website are the responsibility of the directors.
Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from the legislation in other jurisdictions. The directors of the Group are listed in its Annual Report for the year ended 30 June 2024. A list of current directors is maintained on the Grit website: www.grit.group.
On behalf of the Board
Bronwyn Knight Chief Executive Officer
ABRIDGED CONSOLIDATED STATEMENT OF INCOME STATEMENT
Unaudited Restated Unaudited
six months ended six months ended
31 Dec 2024 31 Dec 2023 1
Notes USUSD'000 USUSD'000
Gross property income 8 38,987 30,142
Property operating expenses (6,826) (5,230)
Net property income 32,161 24,912
Other income 142 397
Administrative expenses (9,264) (8,895)
Net (impairment)/ reversal on financial assets (386) 1,335
Profit from operations 22,653 17,749
Fair value adjustment on investment properties (19,528) (19,942)
Fair value adjustment on other financial liability - (235)
Fair value adjustment on other financial asset 20 -
Fair value adjustment on derivative financial instruments (1,511) (4,041)
Fair value loss on revaluation of previously held interest - (23,874)
Share-based payment expense - (100)
Share of profits from associates and joint ventures 3 602 2,813
Loss arising from dilution in equity interest - (12,492)
Loss on derecognition of loans and other receivables - 1
Foreign currency gains/ (losses) 4,654 (2,598)
Other transaction costs (3,970) 191
Profit/ (Loss) before interest and taxation 2,920 (42,528)
Interest income 9 2,935 1,115
Finance costs 10 (32,832) (22,709)
Loss for the period before taxation (26,977) (64,122)
Taxation 1,537 1,971
Loss for the period after taxation (25,440) (62,151)
Loss attributable to:
Equity shareholders (24,876) (58,796)
Non-controlling interests (564) (3,355)
(25,440) (62,151)
Basic and diluted earnings per share (cents) 15 (5.23) (12.19)
1 Figures for the period ended 31 December 2023 have been restated due to error made in prior period. Refer to note 1.4 for more information on the restatement.
ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited Unaudited
six months ended six months ended
31 Dec 2024 31 Dec 20231
USUSD'000 USUSD'000
Loss for the year (25,440) (62,151)
Exchange differences on translation of foreign operations (1,955) (2,064)
Share of other comprehensive expense of associates and joint ventures (680) (2,332)
Revaluation gain through other comprehensive income 312 -
Other comprehensive expense that may be reclassified to profit or loss (2,323) (4,396)
Total comprehensive expense relating to the period (27,763) (66,547)
Total comprehensive expense attributable to:
Owners of the parent (27,044) (63,221)
Non-controlling interests (719) (3,326)
(27,763) (66,547)
1 Figures for the period ended 31 December 2023 have been restated due to error made in prior period. Refer to note 1.4 for more information on the restatement.
ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited as Audited as Restated Unaudited
at at as at
31 Dec 2024 30 Jun 2024 31 Dec 2023 1
Notes USUSD'000 USUSD'000 USUSD'000
Assets
Non-current assets
Investment properties 2 753,776 792,351 763,212
Deposits paid on investment properties 2 5,050 4,976 4,799
Property, plant, and equipment 15,053 13,952 11,381
Intangible assets and goodwill 2,346 2,406 2,453
Investments in joint ventures 3 51,940 52,628 79,732
Related party loans receivable 206 316 92
Finance lease receivable - 1,906 1,856
Other loans receivable 4 22,685 22,348 22,332
Derivative financial instruments 602 17 -
Trade and other receivables 5 2,400 2,503 2,503
Deferred tax 12,521 13,124 14,878
Total non-current assets 866,579 906,527 903,238
Current assets
Trade and other receivables 5 40,653 72,809 41,661
Current tax receivable 4,752 4,093 3,655
Related party loans receivable 8,724 1,534 410
Derivative financial instruments - 45 18
Cash and cash equivalents 16,138 18,766 12,035
70,267 97,247 57,779
Non-current assets classified as held for sale 78,381 50,624 -
Total current assets 148,648 147,871 57,779
Total assets 1,015,227 1,054,398 961,017
Equity and liabilities
Total equity attributable to ordinary shareholders
Ordinary share capital 535,694 535,694 535,694
Treasury shares reserve (13,493) (13,493) (13,395)
Foreign currency translation reserve (7,462) (4,982) (4,814)
Revaluation reserve 2,741 2,429 -
Accumulated losses (339,248) (307,710) (287,134)
Equity attributable to owners of the Company 178,232 211,938 230,351
Perpetual preference notes 6 43,967 42,771 28,606
Non-controlling interests 105,399 102,605 57,999
Total equity 327,598 357,314 316,956
Liabilities
Non-current liabilities
Redeemable preference shares - - 13,308
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DJ Abridged Unaudited consolidated results for six -8-
Proportional shareholder loans 36,499 36,983 16,685
Interest-bearing borrowings 7 344,702 111,635 426,312
Lease liabilities 53 578 578
Derivative financial instruments 1,710 1,857 1,412
Related party loans payable 17,286 - 825
Deferred tax liability 44,900 47,749 51,231
Total non-current liabilities 445,150 198,802 510,351
Current liabilities
Interest-bearing borrowings 7 132,855 389,529 74,336
Lease liabilities 531 137 254
Trade and other payables 34,739 28,974 39,157
Current tax payable 1,372 1,361 1,365
Derivative financial instruments 1,483 1,073 3,001
Other financial liabilities 1,386 18,886 13,593
Bank overdrafts 1,872 1,988 2,004
174,238 441,948 133,710
Liabilities directly associated with non-current assets classified 68,241 56,334 -
as held for sale
Total current liabilities 242,479 498,282 133,710
Total liabilities 687,629 697,084 644,061
Total equity and liabilities 1,015,227 1,054,398 961,017
1 Figures as at 31st December 2023 have been restated due to error made in prior period. Refer to note 1.4 for more information on the restatement.
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
Unaudited Restated Unaudited
six months ended six months ended
31 Dec 2024 31 Dec 20231
Notes USUSD'000 USUSD'000
Cash generated from operations
Loss for the year before taxation (26,977) (64,122)
Adjusted for:
Depreciation and amortisation 1,139 766
Interest income 9 (2,935) (1,115)
Share of profit from associates and joint ventures 3 (602) (2,813)
Finance costs 10 32,832 22,709
IFRS 9 charges/ (credits) 386 (1,335)
Foreign currency losses (4,654) 2,598
Straight-line rental income accrual (2,311) (1,024)
Amortisation of lease premium 226 114
Share based payment expense - 100
Fair value adjustment on investment properties 2 19,528 19,942
Fair value adjustment on other financial liability (20) 235
Fair value adjustment on derivative financial instruments 1,511 4,041
Loss on derecognition of loans and other receivables - (1)
Loss arising from dilution in equity interest - 12,492
Fair value loss on revaluation of previously held interest - 23,874
Other transaction costs 3,970 (191)
22,093 16,270
Changes to working capital
Movement in trade and other receivables 56,906 2,373
Movement in trade and other payables (36,712) (5,749)
Cash generated from operations 42,287 12,894
Taxation paid (2,672) (1,833)
Net cash generated from operating activities 39,615 11,061
Cash (utilised in)/ generated from investing activities
Acquisition of, and additions to investment properties 2 (5,434) (7,500)
Deposits received/ (paid) on investment properties 2 - 1,188
Additions to property, plant, and equipment (60) (110)
Additions to intangible assets (25) (52)
Acquisition of subsidiary through business combination, net of cash acquired - 6,286
Related party loans payables paid (665) -
Proportional shareholder loans repayments from associates and joint ventures 3 610 1,382
Interest received 1,206 -
Other loans receivable repaid by partners - 1,000
Net cash (utilised in)/ generated from investing activities (4,368) 2,194
Prepetual preference note issue expenses (68) -
Perpetual note dividend paid (1,487) -
Proceeds from interest bearing borrowings 51,314 33,531
Settlement of interest bearing borrowings (55,409) (21,593)
Finance costs paid (30,333) (20,571)
Buy back of own shares - (98)
Payment on derivative instrument (761) -
Payments of leases (15) (300)
Net cash utilised in financing activities (36,759) (9,031)
Net movement in cash and cash equivalents (1,512) 4,224
Cash at the beginning of the year 16,778 7,332
Effect of foreign exchange rates (1,000) (1,525)
Total cash and cash equivalents at the end of the period 14,266 10,031
Total cash and cash equivalents comprise of:
Cash and cash equivalents 16,138 12,035
Less: Bank overdrafts (1,872) (2,004)
Total cash and cash equivalents at the end of the period 14,266 10,031
1 Figures for the period ended 31 December 2023 have been restated due to error made in prior period. Refer to note 1.4 for more information on the restatement.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary Treasury Foreign Preference Perpetual Total
share shares currency Revaluation Accumulated share preference Non-controlling
capital reserve translation reserve losses capital notes interests Equity
reserve
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000
Balance as at 1 535,694 (16,306) (389) - (218,349) 31,596 26,827 (25,456) 333,617
July 2023
Loss for the year - - - - (84,496) - - (4,446) (88,942)
Other
comprehensive - - (4,593) 2,429 32 - - (267) (2,399)
(expense) / income
for the year
Total
comprehensive - - (4,593) 2,429 (84,464) - - (4,713) (91,341)
(expense) /income
Share based - - - - 90 - - - 90
payments
Ordinary dividends - - - - (7,227) - - - (7,227)
declared
Treasury shares - (98) - - - - - - (98)
buy back
Settlement of
shared based - 2,911 - - (2,911) - - - -
payment
arrangement
Perpetual
preference notes - - - - - - 16,875 - 16,875
issued
Preferred dividend
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February 14, 2025 02:01 ET (07:01 GMT)
DJ Abridged Unaudited consolidated results for six -9-
accrued on - - - - (3,900) - 2,668 - (1,232) perpetual notes Share issue expenses relating - - - - - - (3,599) - (3,599) to issue of perpetual notes Preferred dividend accrued on - - - - (634) 634 - - - preference shares Settlement of pre-existing relationship as - - - - - (32,230) - - (32,230) part business combination Non controlling interest on acquisition of - - - - - - - 102,971 102,971 subsidiaries through business combination Non controlling interest on acquisition of - - - - - - - 13,094 13,094 subsidiary other than business combination Transaction with non-controlling interests as part - - - - (5,158) - - (16,190) (21,348) of business combination Transaction with non-controlling - - - - 17,336 - - (17,336) - interests without change in control Transaction with non-controlling interests arising - - - - - - - 47,310 47,310 from capital raise of subsidiary Transaction with non-controlling - - - - (2,925) - - 2,925 - interests Other movement - - - - 432 - - - 432 Balance as at 30 June 2024 535,694 (13,493) (4,982) 2,429 (307,710) - 42,771 102,605 357,314 (audited) Balance as at 1 535,694 (16,306) (389) - (218,349) 31,596 26,827 (25,456) 333,617 July 2023 Loss for the - - - - (58,796) - - (3,355) (62,151) period Other comprehensive - - (4,425) - - - - 29 (4,396) (expense)/ income for the period Total comprehensive - - (4,425) - (58,796) - - (3,326) (66,547) expense Share based - - - - 100 - - - 413 payments Settlement of shared based - 2,911 - - (2,911) - - - 2,620 payment arrangement Preferred dividend accrued on - - - - (1,779) - 1,779 - 771 perpetual notes Preferred dividend accrued on - - - - (634) 634 - - - preference shares Settlement of pre-existing relationship as - - - - - (32,230) - - (32,230) part business combination Non controlling interest on acquisition of - - - - - - - 102,971 102,971 subsidiaries through business combination Transaction with non-controlling interests as part - - - - (5,158) - - (16,190) (21,348) of business combination Other movement - - - - 393 - - - 393 Balance as at 31 December 2023 535,694 (13,395) (4,814) - (287,134) - 28,606 57,999 316,956 (restated unaudited) 1 Balance as at 1 535,694 (4,982) 2,429 (307,710) - 42,771 102,605 357,314 July 2024 (13,493) Loss for the - - - (24,876) - - (564) (25,440) period Other comprehensive - - (2,480) 312 - - - (155) (2,323) (expense) / income for the period Total comprehensive - - (2,480) 312 (24,876) - - (719) (27,763) (expense)/ income for the period Share based - - - - - - - - - payments Preferred dividend accrued on - - - - (2,751) - 1,264 - (1,487) perpetual notes Share issue expenses relating - - - - - - (68) - (68) to issue of perpetual notes Transaction with non-controlling - - - - (3,513) - - 3,513 - interests without change in control Other movement in - - - - (398) - - - (398) equity Balance as at 31 December 2024 535,694 (13,493) (7,462) 2,741 (339,248) - 43,967 105,399 327,598 (unaudited)
1 Figures for the period ended 31 December 2023 have been restated due to error made in prior period. Refer to note 1.4 for more information on the restatement.
NOTES TO THE FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of this abridged consolidated financial statements are set out below.
1.1 Basis of preparation
The unaudited abridged consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB, interpretations issued by the IFRS Interpretations Committee (IFRIC); the Financial Pronouncements as issued by Financial Reporting Standards Council and the LSE and SEM Listings Rules. The unaudited abridged consolidated financial statements have been prepared on the going-concern basis and were approved for issue by the Board on 14 February 2025.
Going Concern
The directors are required to consider an assessment of the Group's ability to continue as a going concern when producing the interim abridged unaudited consolidated ?nancial statements.
As disclosed in Note 1.1: Basis of Preparation and Measurement of the audited financial statements for the year ended 30 June 2024, the Directors identified a material uncertainty regarding the Group's ability to continue as a going concern. This uncertainty arose due to the pending receipt of USUSD48.5 million from the Public Investment Corporation SOC Limited of South Africa (PIC), representing their contribution to the USUSD100 million rights issue initiated by Gateway Real Estate Africa Limited (GREA) on 28 June 2024. At the time of approving the 30 June 2024 financial statements on 31 October 2024, these funds had not yet been received. As a result, the Directors concluded that a material uncertainty existed regarding the Group's ability to continue as a going concern, as the timing of the funds remained uncertain at the reporting date.
Subsequently, in November 2024, the Group successfully received the USUSD48.5 million from the PIC. As of 31 December 2024, the Directors have reassessed the Group's financial position and concluded that the conditions that previously triggered the material uncertainty have now been resolved. The abridged consolidated financial statements for the period ended 31 December 2024 continue to be prepared on a going concern basis.
Functional and presentation currency
The abridged unaudited consolidated half year financial statements are prepared and are presented in United States Dollars (USUSD). Amounts are rounded to the nearest thousand, unless otherwise stated. Some of the underlying subsidiaries and associates have functional currencies other than the USUSD. The functional currency of those entities reflects the primary economic environment in which they operate.
Presentation of alternative performance measures
The Group presents certain alternative performance measures on the face of the income statement. Revenue is shown on a disaggregated basis, split between gross rental income and the straight-line rental income accrual. Additionally, if applicable, the total fair value adjustment on investment properties is presented on a disaggregated basis to show the impact of contractual receipts from vendors separately from other fair value movements. These are non-IFRS measures and supplement the IFRS information presented. The directors believe that the presentation of this information provides useful insight to users of the financial statements and assists in reconciling the IFRS information to industry wide EPRA metrics.
1.2 Segmental reporting
In accordance with IFRS 8, operating segments are identified based on internal financial reports regularly reviewed by the Chief Operating Decision Makers (CODM) for the purpose of allocating resources and assessing performance. The CODM was determined to be the C-Suite members of the Group.The C-Suite members, which include the Chief Executive Officer, Chief Financial Officer, and senior executives from GREA, have been identified as the CODM because they bear the primary responsibility for making strategic decisions regarding the allocation of resources to the Group's operating segments and for evaluating the performance of these segments. In line with the requirements of IFRS 8, the Group's operating segments continue to be defined based on the nature of the properties and the markets they serve. These segments include Hospitality, Retail, Office, Light Industrial, Corporate Accommodation, Healthcare, Data Centres, Development Management, and Corporate functions. Management believes that this segmentation provides the most relevant
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DJ Abridged Unaudited consolidated results for six -10-
information for stakeholders, and, accordingly, no further aggregation of operating segments into reportable segments has been made. Although the Group's operations span several geographical locations across Africa, and this geographic footprint is disclosed to provide users with a more comprehensive understanding of the Group's activities, management primarily evaluates the performance of its segments based on their economic characteristics rather than their geographic location.
1.3 Significant accounting judgements, estimates and assumptions
The preparation of these abridged consolidated half year financial statements in conformity with IFRS requires the use of accounting estimates which by definition will seldom equal the actual results. Management also needs to exercise judgement in applying the group's accounting policies. Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectation of future events that may have a monetary impact on the entity and that are believed to be reasonable under the circumstances.
Significant Judgements
In the process of applying the Group's accounting policies, management has made the following judgements.
Historical significant judgements which continue to affect the financial statements
Freedom Asset Management (FAM) as a subsidiary
The Group has considered Freedom Asset Management (FAM) to be its subsidiary for consolidation purposes due to the Group's implied control of FAM, as the Group has ability to control the variability of returns of FAM and has the ability to affect returns through its power to direct the relevant activities of FAM. The Group does not own any interest in FAM however it has exposure to returns from its involvement in directing the activities of FAM.
Grit Executive Share Trust (GEST) as a subsidiary
The Group has considered Grit Executive Share Trust (GEST) to be its subsidiary for consolidation purposes due to the Group's implied control of GEST, as the Group's ability to appoint the majority of the trustees and to control the variability of returns of GEST. The Group does not own any interest in GEST but is exposed to the credit risk and losses of (GEST) as the Group shall bear any losses sustained by GEST and shall be entitled to receive and be paid any profits made in respect of the purchase, acqu sition, sale or disposal of unawarded shares in the instance where shares revert back to GEST.
Grit Executive Share Trust II (GEST II) as a subsidiary
During the financial year 2023, Grit Executive Share Trust II has been incorporated to act as trust for the new long term incentive plan of the Group. The trust will hold Grit shares to service the new scheme when the shares will vest to the employees in the future. The corporate set-up of GEST II is like GEST and the Group has considered the latter to be a subsidiary due to the implied control that the Group has over it.
African Development Managers Limited ("APDM") as subsidiary
Africa Development Managers Ltd transitioned from being classified as a joint venture to a subsidiary on 30 November 2023. Despite holding a majority shareholding of 78.95%, the Group previously did not exercise control over APDM due to the power criteria not being met under the previous shareholders agreement. Decision-making authority for relevant activities rested with the investment committee of the Company, requiring seventy-five percent of its members' approval for decisions to pass. The Group could appoint four out of the seven members to the committee, while the Public Investment Corporation (PIC), holding 21.05% of APDM, could appoint two members. Additionally, a non executive member was appointed. Given the requirement for unanimous agreement among the Group and PIC to pass resolutions, control was not previously established. On 30 November 2023, the Group and PIC collectively signed an amended and restated APDM shareholder agreement, clarifying and amending the shareholder rights. Notably, the decision approval threshold at the investment committee was lowered to a simple majority. With the Group's ability to appoint four out of seven members and the revised decision threshold, control now resides with the Group. In assessing control, the Group also evaluated the reserved matters outlined in the amended agreement, where PIC's approval is still required for specific events. Upon a comprehensive review performed by the Group, it was concluded that none of these matters grant PIC the ability to block decisions related to APDM's relevant activities, but rather are included to safeguard the minority shareholder's interests. Due to the inherent judgment that needs to be applied in interpreting terms that are protective rather than substantive, the Group has considered the interpretation of the reserved matters to be an area of significant judgement.
Gateway Real Estate Africa Limited ("GREA") as subsidiary.
The Group has recognized Gateway Real Estate Africa Ltd (GREA) as a subsidiary on 30 November 2023. Although the Group held a majority equity stake in GREA, it was previously treated as a joint venture due to the previous shareholders agreement where its board of directors largely directed its relevant activities. The Group could appoint three out of seven directors on the board, while PIC could appoint two directors, with the remaining being non-executive. Decisions required seventy-five percent of present members' votes, necessitating the support of PIC for Grit to make decisions. On 30 November 2023, the Group and PIC signed an amended and restated GREA shareholder agreement, clarifying and amending shareholder rights. Importantly, under the new agreement, the Group now has the ability to appoint four out of seven directors, while PIC retains the right to appoint two directors. The decision approval threshold at the board level has been lowered to a simple majority and it was therefore concluded that control of GREA has been established by the Group.The Group also evaluated specific events where PIC's approval is still required, reflected in the reserved matter section of the new agreement. Upon comprehensive review, it was concluded that these matters do not grant PIC the ability to block decisions related to GREA's relevant activities but are included to safeguard PIC's interests. Due to the inherent judgment that needs to be applied in interpreting terms that are protective rather than substantive, the Group has considered the interpretation of the reserved matter to be an area of significant judgement.
Significant Estimates
The principal areas where such estimations have been made are:
Fair value of investment properties
The fair value of investment properties and owner occupied property are determined using a combination of the discounted cash flows method and the income capitalisation valuation method using assumptions that are based on market conditions existing at the relevant reporting date. For further details of the valuation method, judgements and assumptions made, refer to note 2.
1.4 Restatement of comparative figures for the period ended 31st December 2023 due to prior period error
Restatement - Revised Assessment of the Timing of Consolidation for Gateway Real Estate Africa ("GREA") and Africa Development Managers Ltd ("APDM")
In November 2023, amendments were made to the shareholder agreements of GREA and APDM. For the reporting period ended 31 December 2023, the Group initially concluded, based on judgment that it did not have control over GREA or APDM at that time. This conclusion considered the fact that, although the Group held a contractual right to appoint four of the seven members to the APDM Investment Committee and four of the seven directors to the GREA Board (both of which make decisions by simple majority), those rights had not been exercised as at 31 December 2023. Consequently, GREA and APDM were not consolidated as of that reporting date.
Subsequently, the Group performed a purchase price allocation in accordance with IFRS 3: Business Combinations. As part of this process, a control reassessment under IFRS 10: Consolidated Financial Statements was also undertaken. It was concluded that power arises from rights, and that the unilateral ability to appoint a majority of decision-making members typically indicates control. Since the relevant amendments to the shareholder agreements took effect on 30 November 2023, according to the standard, the Group held as from that date, the enforceable contractual right to appoint a majority of both the APDM Investment Committee and the GREA Board. This right established control from 30 November 2023-even though formal appointments had not yet been made by the reporting date.
Accordingly, the Group has updated its position and consolidated GREA and APDM with effect from 30 November 2023. The previously reported figures for the period ended 31 December 2023 have been restated to reflect this revised consolidation treatment. The effect of these restatements on each affected financial statement line item for the period ended 31 December 2023 is presented below. To note that the audited 30 June 2024 financial statements already catered for the consolidation of GREA and APDM as from November 2023.
Restated
31 December 2023 Increase/ (Decrease) 31 December 2023
USUSD'000 USUSD'000 USUSD'000
Statement of Financial Position (Extract)
Investment properties 615,779 147,433 763,212
Property, plant and equipment 4,094 7,287 11,381
Intangible assets and goodwill 308 2,145 2,453
Other investments 3 (3) -
Investments in joint ventures 196,870 (117,138) 79,732
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DJ Abridged Unaudited consolidated results for six -11-
Related party loans receivable 129 373 502 Finance lease receivable - 1,856 1,856 Other loans receivable 22,214 118 22,332 Trade and other receivables 25,833 18,331 44,164 Deferred tax 13,176 1,702 14,878 Current tax receivable 3,585 70 3,655 Cash and cash equivalents 6,776 5,259 12,035 Proportional shareholder loans 33,259 (16,574) 16,685 Interest-bearing borrowings 411,711 88,937 500,648 Lease liabilities 3,840 (3,008) 832 Related party loans payable 8,507 (7,682) 825 Deferred tax liability 49,805 1,426 51,231 Trade and other payables 43,658 (4,501) 39,157 Current tax payable 365 1,000 1,365 Total impact on equity 337,622 7,835 345,457
Income statement (Extract)
Restated
31 December Increase/ 31 December
2023 (Decrease) 2023
USUSD'000 USUSD'000 USUSD'000
Gross property income 28,429 1,713 30,142
Property operating expenses (4,953) (277) (5,230)
Net property income 23,476 1,436 24,912
Other income 108 289 397
Administrative expenses (7,929) (966) (8,895)
Net (impairment)/reversal on financial assets 979 356 1,335
Profit from operations 16,634 1,115 17,749
Fair value adjustment on investment properties (19,954) 12 (19,942)
Fair value adjustment on other financial liability (235) - (235)
Fair value adjustment on derivative financial instruments (4,041) - (4,041)
Fair value loss on revaluation of previously held interest - (23,874) (23,874)
Share-based payment expense (100) - (100)
Share of profits from associates and joint ventures 5,378 (2,565) 2,813
Loss arising from dilution in equity interest - (12,492) (12,492)
Loss on derecognition of loans and other receivables 1 - 1
Foreign currency gains/ (losses) (2,499) (99) (2,598)
Other transaction costs (567) 758 191
Loss before interest and taxation (5,383) (37,145) (42,528)
Interest income 1,514 (399) 1,115
Finance costs (19,691) (3,018) (22,709)
Loss for the year before taxation (23,560) (39,447) (64,122)
Taxation 2,533 (562) 1,971
Loss for the year after taxation (21,027) (40,009) (62,151)
Loss attributable to:
Equity shareholders (18,542) (40,254) (58,796)
Non-controlling interests (2,485) (870) (3,355)
(21,027) (41,124) (62,151)
Loss for the year (21,027) (41,124) (62,151)
Exchange differences on translation of foreign operations 508 (2,572) (2,064)
Share of other comprehensive (expense)/ income of associates and joint (4,164) 1,832 (2,332)
ventures
Other comprehensive expense that may be reclassified to profit or loss (3,656) (740) (4,396)
Total comprehensive expense relating to the year (24,683) (41,864) (66,547)
Attributable to:
Equity shareholders (22,227) (40,994) (63,221)
Non-controlling interests (2,456) (870) (3,326)
(24,683) (41,864) (66,547)
The Group has also performed a purchase price allocation("PPA") for the acquisition of GREA and APDM. More details on the PPA can be found in the financial statements section of the 2024 annual report of Grit. Refer to note 30a of the financial statements.
2. INVESTMENT PROPERTIES
As at As at
31 Dec 30 Jun
2024 2024
USUSD'000 USUSD'000
Net carrying value of properties 753,776 792,351
Movement for the year excluding straight-line rental income accrual, lease incentive and right of
use of land
Investment property at the beginning of the year 770,424 611,854
Acquisition through subsidiary in a business combination - 141,110
Transfer from associate on step up to subsidiary - 75,040
Reduction in property value on asset acquisition - (938)
Other capital expenditure and construction 5,434 22,775
Transfer to disposal group held for sale 1 (24,124) (49,000)
Foreign currency translation differences (1,895) (2,487)
Revaluation of properties at end of year (19,528) (27,930)
As at period end 730,311 770,424
Reconciliation to consolidated statement of financial position and valuations
Carrying value of investment properties excluding right of use of land, lease incentive and 730,311 770,424
straight-line income accrual
Right of use of land 6,648 6,682
Lease incentive 3,810 4,070
Straight-line rental income accrual 13,007 11,176
Total valuation of properties 753,776 792,351
1 St Helene, the beneficial owner of Artemis Curepipe Hospital in Mauritius has been reclassied under non-current assets classified as held for sale during the period. Refer to note 12 for more information on the disposal group classified as held for sale as at 31st December 2024.
Lease incentive asset included in investment property
In accordance with IFRS 16, rental income is recognised in the Group income statement on a straight-line basis over the lease term. This includes the effect of lease incentives given to tenants. The Group has granted lease incentives to tenants (in the form of rent-free periods). The result is a receivable balance included within investment property in the balance sheet as those are balances that must be considered when reconciling to valuation figures to prevent double counting of assets. This balance is subject to impairment testing under IFRS 9 using the simplified approach to expected credit loss of IFRS 9.
As at As at
31 Dec 2024 30 Jun 2024
USUSD'000 USUSD'000
Lease incentive receivables before impairment 4,178 4,442
Impairment of lease incentive receivables (368) (372)
Net lease incentive included within investment property 3,810 4,070
As at As at
Most recent
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DJ Abridged Unaudited consolidated results for six -12-
Summary of valuations by reporting independent Valuer (for the most Sector Country 31 Dec 30 Jun
date valuation date recent valuation) 2024 2024
USUSD'000 USUSD'000
Commodity House Phase 1 31-Dec-24 Directors' valuation Office Mozambique 57,448 56,957
Commodity House Phase 2 31-Dec-24 Directors' valuation Office Mozambique 21,654 20,717
Hollard Building 31-Dec-24 Directors' valuation Office Mozambique 21,849 21,123
Vodacom Building 31-Dec-24 Directors' valuation Office Mozambique 41,285 51,281
Zimpeto Square 31-Dec-24 Directors' valuation Retail Mozambique 3,372 3,277
Bollore Warehouse 31-Dec-24 Directors' valuation Light Mozambique 9,868 10,144
industrial
Anfa Place Mall 31-Dec-24 Directors' valuation Retail Morocco 64,594 67,506
VDE Housing Compound 31-Dec-24 Directors' valuation Corporate Mozambique 43,993 44,021
accommodation
Imperial Distribution Centre 31-Dec-24 Directors' valuation Light Kenya 17,003 18,620
industrial
Mara Viwandani 31-Dec-24 Directors' valuation Light Kenya 2,530 2,530
industrial
Buffalo Mall 31-Dec-24 Directors' valuation Retail Kenya 9,999 9,950
Mall de Tete 31-Dec-24 Directors' valuation Retail Mozambique 13,228 13,396
Acacia Estate 31-Dec-24 Directors' valuation Corporate Mozambique 70,555 70,237
accommodation
5th Avenue 31-Dec-24 Directors' valuation Office Ghana 16,851 16,660
Capital Place 31-Dec-24 Directors' valuation Office Ghana 18,929 20,040
Mukuba Mall 31-Dec-24 Directors' valuation Retail Zambia 62,373 62,180
Orbit Complex 31-Dec-24 Directors' valuation Light Kenya 25,943 26,750
industrial
Copia Land 31-Dec-24 Directors' valuation Light Kenya 6,636 6,670
industrial
Club Med Cap Skirring Resort 31-Dec-24 Directors' valuation Hospitality Senegal 31,571 31,406
Coromandel Hospital 31-Dec-24 Directors' valuation Healthcare Mauritius 861 877
Artemis Curepipe Clinic 31-Dec-24 Directors' valuation Healthcare Mauritius - 24,726
The Precint- Freedom House 31-Dec-24 Directors' valuation Office Mauritius 923 658
The Precint- Harmony House 31-Dec-24 Directors' valuation Office Mauritius 2,085 2,085
The Precint- Unity House 31-Dec-24 Directors' valuation Office Mauritius 18,307 18,058
Eneo Tatu City- CCI 31-Dec-24 Directors' valuation Office Kenya 48,463 47,990
Metroplex Shopping Mall 31-Dec-24 Directors' valuation Retail Uganda 18,395 20,020
Adumuah Place 31-Dec-24 Directors' valuation Office Ghana 2,725 2,717
Africa Data Centers 31-Dec-24 Directors' valuation Data Centre Nigeria 28,610 28,500
DH4 Bamako 31-Dec-24 Directors' valuation Corporate Mali 16,686 16,385
accommodation
DH1 Elevation 31-Dec-24 Knight Frank Corporate Ethiopia 77,040 76,870
accommodation
Total valuation of investment properties directly held by the Group- IFRS 753,776 792,351
Valuation of investment property classified as held for sale 71,851 49,000
Valuation of owner-occupied property classified as property, plant and equipment 13,861 12,500
Total valuation of property portfolio 839,488 853,851
Total valuation of investment properties directly held by the Group 753,776 792,351
Deposits paid on Imperial Distribution Centre Phase 2 1,500 1,426
Deposits paid on Capital Place Limited 3,550 3,550
Total deposits paid on investment properties 5,050 4,976
Total carrying value of property portfolio including deposits paid 758,826 797,327
Investment properties held within associates and joint ventures - Group share
Kafubu Mall - Kafubu Mall Limited 31-Dec-24 Directors' valuation Retail Zambia 9,423 9,875
(50%)
CADS II Building - CADS Developers 31-Dec-24 Directors' valuation Office Ghana 12,261 12,725
Limited (50%)
Cosmopolitan Shopping Centre -
Cosmopolitan Shopping Centre Limited 31-Dec-24 Directors' valuation Retail Zambia 28,432 28,190
(50%)
DH3- Rosslyn Grove (50%) 31-Dec-24 Knight Frank Corporate Kenya 29,822 29,850
accommodation
Total of investment properties acquired through associates and joint ventures 79,938 80,640
Total portfolio 838,764 877,967
Functional currency of total property portfolio
United States Dollars 730,646 741,924
Euros 31,571 56,132
Moroccan Dirham 64,594 67,506
Kenyan Shilling 2,530 2,530
Zambian Kwacha 9,423 9,875
Total portfolio 838,764 877,967
All valuations that are performed in the functional currency of the relevant property company are converted to United States Dollars at the e?ective closing rate of exchange. All valuations have been undertaken in accordance with the RICS Valuation Standards that were in e?ect at the relevant valuation date and are further compliant with International Valuation Standards and International Financial Reporting Standards. All of the investment properties except for DH1 Elevation and DH3 Rosslyn Grove were internally valued using Director's valuation. The discounted cash flow method was used for all buildings and all land parcels were valued using the comparable method.
3. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
The following entities have been accounted for as associates and joint ventures in the current and comparative consolidated financial statements using the equity method:
As at As at
31 Dec 2024 30 Jun 2024
Name of joint venture Country % Held USUSD'000 USUSD'000
Kafubu Mall Limited1 Zambia 50.00% 9,372 9,822
Cosmopolitan Shopping Centre Limited1 Zambia 50.00% 28,481 28,143
CADS Developers Limited1 Ghana 50.00% 3,483 4,114
DH3 Holdings Ltd1 Kenya 50.00% 10,604 10,549
Carrying value of joint ventures 51,940 52,628
1 The percentage of ownership interest during the period ended 31 December 2024 did not change.
All investments in joint ventures are private entities and do not have quoted prices available.
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Reconciliation to carrying value in joint ventures
Kafubu Mall CADS Developers Cosmopolitan Shopping DH3 Holdings Total
Limited Limited Centre Limited Ltd
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000
Balance at the beginning of the 9,822 4,114 28,143 10,549 52,628
period- 30 June 2024
Profit / (losses) from associates and 563 (907) 1,281 (335) 602
joint ventures
Revenue 496 287 1,325 1,499 3,607
Property operating expenses and (95) (82) (254) (250) (681)
construction costs
Admin expenses and recoveries (5) (3) (5) (274) (287)
Unrealised foreign exchange gains/ - - 81 (13) 68
(losses)
Finance charges (2) (630) - (1,191) (1,823)
Fair value movement on investment 222 (479) 238 (106) (125)
property
Current tax (53) - (104) - (157)
Deferred tax - - - - -
Repayment of proportionate (333) 276 (943) 390 (610)
shareholders loan
Foreign currency translation (680) - - - (680)
differences
Carrying value of joint ventures- 31 9,372 3,483 28,481 10,604 51,940
December 2024
4. OTHER LOANS RECEIVABLE
As at As at
31 Dec 2024 30 Jun 2024
USUSD'000 USUSD'000
African Property Investments Limited 21,034 21,034
Drift (Mauritius) Limited 9,476 9,135
Pangea 2 Limited 6 6
Ignite Mozambique Holdings S.A 1,516 1,520
IFRS 9 - Impairment on financial assets (ECL) (9,347) (9,347)
As at period end 22,685 22,348
Classification of other loans:
Non-current assets 22,685 22,348
Current assets - -
As at period end 22,685 22,348
5. TRADE AND OTHER RECEIVABLES
As at As at
31 Dec 2024 30 Jun 2024
USUSD'000 USUSD'000
Trade receivables 30,357 17,918
Total allowance for credit losses and provisions (8,091) (7,914)
IFRS 9 - Impairment on financial assets (ECL) (2,795) (2,801)
IFRS 9 - Impairment on financial assets (ECL) Management overlay on specific provisions (5,296) (5,113)
Trade receivables - net 22,266 10,004
Accrued Income 5,221 2,645
Loan interest receivable 21 44
Deposits paid 171 172
VAT recoverable 9,709 11,496
Purchase price adjustment account 965 965
Deferred expenses and prepayments 6,721 5,126
Listing receivables 228 48,751
IFRS 9 - Impairment on other financial assets (ECL) (3,891) (3,891)
Sundry debtors 1,642 -
Other receivables 20,787 65,308
As at period end 43,053 75,312
Classification of trade and other receivables:
Non-current assets 2,400 2,503
Current assets 40,653 72,809
As at period end 43,053 75,312
6. PERPETUAL PREFERENCE NOTES
As at As at
31 Dec 2024 30 Jun 2024
USUSD'000 USUSD'000
Opening balance 42,771 26,827
Issue of perpetual preference note classified as equity - 16,875
Preferred dividend accrued 2,751 3,900
Preferred dividend paid (1,487) (1,232)
Less: Incremental costs of issuing the perpetual preference note (68) (3,599)
As at period end 43,967 42,771
The Group has two perpetual peference notes arrangements as at 31 December 2024. Included below are more details of each arrangement.Included below are salient features of the notes:
International Finance Corporation ("IFC") Perpetual Preference Notes
During the financial year ended 30 June 2024, the Group, through one of its indirect subsidiaries, Orbit Africa Limited ("OAL"), has issued perpetual preference notes to the International Finance Corporation ("IFC"). The proceeds received by the Group from the issue amounted to USUSD16.8 million. Below are the salient features of the notes:
- The notes attract cash coupon at a rate of 3% + Term SOFR per annum and a 3% redemption premium per annum. At its sole discretion, the Group has the contractual right to elect to capitalize the cash coupons.
- The notes do not have a fixed redemption date and are perpetual in tenor. However, if not redeemed on the redemption target date, the notes carry a material coupon step-up provision and are therefore expected to result in an economic maturity and redemption by the Group on or before that date.
- The Group has classified the notes in their entirety as equity in the statement of financial position because of the unconditional right of the Group to avoid delivering cash to the noteholder.
TRG Africa Mezzanine Partners GP Proprietary Ltd and Blue Peak Private Capital GP Perpetual Preference Notes
In the financial year 2022, the Group through its wholly owned subsidiary Grit Services Limited has issued perpetual preference note to two investors TRG Africa Mezzanine Partners GP Proprietary Ltd ("TRG Africa") and Blue Peak Private Capital GP ("Blue Peak"). The total cash proceeds received from the two investors for the issuance of the perpetual note amounted to USUSD31.5million.
Below are salient features of the notes:
- The Note has a cash coupon of 9% per annum and a 4% per annum redemption premium. The Group at its sole discretion may elect to capitalise cash coupons.
- Although perpetual in tenor, the note carries a material coupon step-up provision after the fifth anniversary that is expected to result in an economic maturity and redemption by the Group on or before that date.
- The Note may be voluntarily redeemed by the Group at any time, although there would be call-protection costs associated with doing so before the third anniversary.
- The Note if redeemed in cash by the Group can offer the noteholders an additional return of not more than 3% per annum, linked to the performance of Grit ordinary shares over the duration of the Note.
- The noteholders have the option to convert the outstanding balance of the note into Grit equity shares. If such option is exercised by the noteholders, the number of shares to be issued shall be calculated based on a pre-defined formula as agreed between both parties in the note subscription agreement.
On recognition of the perpetual preference note, the Group has classified eighty five percent of the instrument that is USUSD26.8million as equity because for this portion of the instrument the Group at all times will have an unconditional right to avoid delivery of cash to the noteholders. The remaining fifteen percent of the instrument that is USUSD4.7million has been classified as debt and included as part of interest bearing borrowings. The debt portion arises because the Note contains terms that can give the noteholders the right to ask for repayment of fifteen percent of the outstanding amount of the note on the occurence of some future events that are not wholly within the control of the Group. The directors believe that the probability that those events will happen are remote but for classification purposes, because the Group does not have an unconditional right to avoid delivering cash to the noteholders on fifteen percent of the notes, this portion of the instrument has been classified as liability.
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The incremental costs directly attributable to issuing the notes (classified as equity) have been recorded as a deduction in equity, in the same equity line where the equity portion of the instrument has been recorded, so that effectively the equity portion of the instrument is recorded net of transaction costs.
7. INTEREST-BEARING BORROWINGS
The following debt transactions were concluded during the period under review:
. A total facility of USUSD30.0 million was received from MauBank Ltd for Grit Services Limited and Grit Real
Estate Income Group Limited.
. A faclity of c.USUSD0.56 million was received from First National Bank during the period for the
acquisition of Parc Nicol.
A facility of USUSD9.5 million was received in Gateway Real Estate Africa from SBI (Mauritius) Ltd.
. Partial settlement of the SBSA facility linked to Zambian Property Holdings Limited amounting to USUSD7.5
million.
. Partial settlement of the SBSA corporate facility held by Gateway Real Estate Africa amounting to USUSD18.0
million.
. SBM Bank (Mauritius) Ltd facility held by GD (Mauritius) Hospitality Investments Ltd of USUSD10.0 million
was settled during the period.
. Partial settlement of the Investec facility linked to AnfaPlace Mall amounting to c.USUSD3.2 million.
As at As at
31 Dec 2024 30 Jun 2024
USUSD'000 USUSD'000
Non-current liabilities 344,702 111,635
Current liabilities 132,855 389,529
As at period end 477,557 501,164
Currency of the interest-bearing borrowings (stated gross of unamortised loan issue costs)
United States Dollars 413,564 404,960
Euros 59,847 84,504
Ethiopian Birr 4,495 10,492
South African Rand 527 -
478,433 499,956
Interest accrued 8,870 9,588
Unamortised loan issue costs (9,746) (8,380)
As at period end 477,557 501,164
Movement for the period
Balance at the beginning of the year 501,164 396,735
Proceeds of interest bearing-borrowings 51,314 79,075
Loan acquired through asset acquisition - 10,770
Loan acquired through business combination - 88,240
Reclassify to held for sale disposal group (10,425) (37,066)
Loan issue costs (4,078) (2,658)
Amortisation of loan issue costs 2,712 3,539
Foreign currency translation differences (7,003) (1,612)
Interest accrued 29,615 49,510
Interest paid during the year (30,333) (48,453)
Debt settled during the year (55,409) (36,916)
As at period end 477,557 501,164
Analysis of facilities and loans in issue
As at As at
31 Dec 30 Jun
2024 2024
Lender Borrower Initial facility USUSD'000 USUSD'000
Financial institutions
Standard Bank South Africa Commotor Limitada USUSD140.0m 140,000 140,000
Standard Bank South Africa Zambian Property Holdings Limited USUSD70.4m 56,900 64,400
Standard Bank South Africa Grit Services Limited EUR33m 15,555 24,502
Standard Bank South Africa Capital Place Limited USUSD6.2m 6,200 6,200
Standard Bank South Africa Casamance Holdings Limited EUR6.5m 6,876 7,060
Standard Bank South Africa Grit Accra Limited USUSD6.4m 8,400 8,400
Standard Bank South Africa Casamance Holdings Limited EUR 11m 3,173 3,257
Standard Bank South Africa Casamance Holdings Limited EUR 11m 7,278 7,472
Standard Bank South Africa Gateway Real Estate Africa Ltd USUSD 18m 5,000 23,000
Standard Bank South Africa Grit Services Limited EUR 0.5m 561 576
Standard Bank South Africa Grit Services Limited EUR 0.4m 440 452
Standard Bank South Africa Grit Services Limited USUSD 2.5m 588 588
Standard Bank South Africa Grit Services Limited USUSD 0.9m 963 -
Standard Bank South Africa Grit Services Limited USUSD 1.5m 1,544 -
Standard Bank South Africa Grit Services Limited USUSD 2.41m 2,410 -
Standard Bank (Mauritius) Limited Grit Services Limited USD2.02m 2,024 2,025
Total Standard Bank Group 257,912 287,932
State Bank of Mauritius St Helene Clinic Co Ltd EUR 11.64M - 4,600
State Bank of Mauritius St Helene Clinic Co Ltd EUR 1.06m - 964
State Bank of Mauritius St Helene Clinic Co Ltd EUR339k - 337
(capitalised)
State Bank of Mauritius St Helene Clinic Co Ltd EUR48k - 40
(capitalised)
State Bank of Mauritius GD (Mauritius) Hospitality USUSD10m - 10,000
Investments Ltd
State Bank of Mauritius GR1T House Limited USUSD 22.5m 21,700 22,190
Total State Bank of Mauritius 21,700 38,131
Investec South Africa Freedom Property Fund SARL EUR 36m 26,404 30,288
Total Investec Group 26,404 30,288
ABSA Bank (Mauritius) Limited Gateway Real Estate Africa Ltd USUSD10.0m 10,000 10,000
Total ABSA Group 10,000 10,000
Maubank Mauritius Grit Real Estate Income Group Limited USUSD15.0m 15,000 -
Maubank Mauritius Grit Services Limited USUSD15.0m 15,000 -
Total Maubank Mauritius 30,000 -
Nedbank South Africa Warehously Limited USUSD8.6m 8,620 8,620
Nedbank South Africa Grit Real Estate Income Group Limited USUSD7m 7,000 6,780
Total Nedbank South Africa 15,620 15,400
NCBA Bank Kenya Grit Services Limited USUSD3.9m 4,111 3,984
NCBA Bank Kenya Grit Services Limited USUSD8.0m 8,255 8,000
NCBA Bank Kenya Grit Services Limited USUSD6.5m 6,707 6,500
NCBA Bank Kenya Grit Services Limited USUSD11.0m 11,351 11,000
NCBA Bank Kenya Grit Services Limited USUSD6.5m - 514
NCBA Bank Kenya Grit Services Limited USUSD11.0m - 589
Total NCBA Bank Kenya 30,424 30,587
Ethos Mezzanine Partners GP Proprietary Grit Services Limited USUSD2.4m 2,648 2,475
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Limited
Blue Peak Holdings S.A.R.L Grit Services Limited USUSD2.2m 2,295 2,250
Total Private Equity 4,943 4,725
International Finance Corporation Stellar Warehousing and Logistics USUSD16.1m 16,100 16,100
Limited
Total International Finance Corporation 16,100 16,100
Housing Finance Corporation Buffalo Mall Naivasha Limited USUSD4.24m 3,974 4,131
Total Housing Finance Corporation 3,974 4,131
AfrAsia Bank Limited Africa Property Development Managers Term Loans 8 15
Ltd
Total AfrAsia Bank Limited 8 15
SBI (Mauritius) Ltd St Helene Clinic Co Ltd EUR 11.64m - 5,159
SBI (Mauritius) Ltd St Helene Clinic Co Ltd EUR 0.25m - 249
SBI (Mauritius) Ltd Grit Real Estate Income Group Limited USUSD9.5m 9,500 -
Total SBI (Mauritius) Ltd 9,500 5,408
Stanbic Bank Ghana Ltd GD Appolonia Limited USUSD1.5m 1,195 1,295
Stanbic Bank Uganda Limited Gateway Metroplex Ltd USUSD10.75m 7,465 8,337
Stanbic IBTC PLC Nigeria DC One FZE USUSD13.59m 10,796 11,155
Stanbic Bank Kenya Gateway CCI Limited USUSD13.59m 25,680 13,988
Stanbic Bank Ghana Ltd Gateway CCI Limited USUSD2.0m 1 2,397
Stanbic Bank Uganda Limited Gateway CCI Limited USUSD1.8m - 1,947
Stanbic IBTC PLC Nigeria Gateway CCI Limited USUSD1.2m - 1,319
Stanbic Bank Kenya Gateway CCI Limited USUSD0.86m - 864
Stanbic Bank Kenya Gateway CCI Limited USUSD5.04m - 5,125
Total Stanbic Bank 45,136 46,427
Bank of Oromia DH One Real Estate PLC Ethiopian Birr 4,495 10,491
620m
Total Bank of Oromia 4,495 10,491
High West Capital Partners Grit Services Limited USUSD3.5m 1,690 321
Total High West Capital Partners 1,690 321
FNB Grit Parc Nicol ZAR10m 527 -
Total FNB 527 -
Total loans in issue 478,433 499,956
plus: interest accrued 8,870 9,588
less: unamortised loan issue costs (9,746) (8,380)
As at period end 477,557 501,164
Fair value of borrowings is not materially different to their carrying value amounts since interest payable on those borrowings are either close to their current market rates or the borrowings are short-term in nature.
8. GROSS PROPERTY INCOME
Restated
Six months ended
Six months ended
31 Dec 2024
31 Dec 2023
USUSD'000 USUSD'000
Contractual rental income 29,064 24,397
Retail parking income 880 879
Straight-line rental income accrual 2,311 1,024
Other rental income 1,061 (144)
Gross rental income 33,316 26,156
Asset management fees (196) 717
Recoverable property expenses 5,867 3,269
Total gross property income 38,987 30,142
9. INTEREST INCOME
Restated
Six months ended
Six months ended
31 Dec 2024
31 Dec 2023
USUSD'000 USUSD'000
Finance lease interest income 97 16
Interest on loans to partners 1,527 1,523
Interest on loans from related parties 429 (485)
Interest on tenant rental arrears 656 -
Interest on property deposits paid 74 61
Bank interest 44 -
Other interest income 108 -
Total interest income 2,935 1,115
10. FINANCE COSTS
Restated
Six months ended
Six months ended
31 Dec 2024
31 Dec 2024
USUSD'000 USUSD'000
Interest-bearing borrowings - financial institutions 29,227 21,949
Early settlement charges 388 1
Amortisation of loan issue costs 2,712 1,629
Preference share dividends 480 499
Interest on derivative instrument1 (983) (2,449)
Interest on lease liabilities 20 143
Interest on loans to proportional shareholders 873 876
Interest on loans to related parties 60 -
Interest on bank overdraft 55 61
Total finance costs 32,832 22,709
1 The Group includes the net interest income from its derivative instruments within finance costs. Although hedge accounting is not applied, these instruments were contracted as an economic hedge to mitigate the impact of unfavorable movements in interest rates.
11. TRANSACTION WITH NON-CONTROLLING INTEREST
In October 2024, the Group completed the previously announced transaction transferring Acacia Estate from Grit Services Limited ("GSL") to Gateway Real Estate Africa Ltd ("GREA") via the transfer of TC Maputo Properties Limited, the beneficial owner of the Acacia Estate. Under the terms of the transaction, an effective 48.5% shareholding in Acacia Estate was sold to GREA. Despite the sale, Acacia Estate remains fully consolidated within the Group since both GSL and GREA are Group subsidiaries. However, the transaction resulted in an increase in the non-controlling interest in Acacia Estate: the 48.5% shareholding was transferred from GSL-a wholly owned subsidiary-to GREA, where the Group now holds an effective shareholding of 53.29%. As the disposal occurred between entities within the Group, no consideration was received from a Group perspective. Consequently, the Group recognized an increase in non-controlling interest of USUSD3.5 million, with a corresponding decrease in equity attributable to the owners of the parent. The impact on the equity attributable to the owners of the Group during the period is summarized as follows:
USUSD'000 Carrying amount of non-controlling interests disposed (3,500) Consideration received from non-controlling interests - Decrease in equity attributable to equity shareholders 3,500
12. Non-current assets classified as held for sale
In October 2024, the Group signed a Share Purchase Agreement ("SPA") for the disposal of its equity interests in St Helene which is the beneficial owner of Artemis Curepipe Hospital in Mauritius. The sale of St Helene is expected to be completed during the financial year 2025, and its assets and liabilities have been classified as part of a disposal group held for sale.
Additionally, on 30 June 2024 the Group classified Mara Delta (Mauritius) Property Limited ("Mara Delta"), the beneficial owner of Tamassa Resort in Mauritius, as a disposal group held for sale. Management re-assessed this classification on 31 December 2024 and confirmed that it remains appropriate.
The following table summarizes the major classes of assets and liabilities of St Helene and Mara Delta that are classified as held for sale as at 31 December 2024:
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Assets of disposal group classified as held for sale
Mara Delta (Mauritius) Property Limited St Helene Clinic Total
31 December 2024 31 December 2024 31 December 2024
USUSD ' 000 USUSD ' 000 USUSD ' 000
Investment property 47,727 24,124 71,851
Trade and other receivables 356 899 1,255
Current tax refundable 284 154 438
Deferred tax asset - non current 1,511 19 1,530
Cash and cash equivalents 247 1,225 1,472
Related party loans receivable - 116 116
Finance lease receivable - 1,719 1,719
50,125 28,256 78,381
Liabilities of disposal group classified as held for sale
Mara Delta (Mauritius) Property Limited St Helene Clinic Total
31 December 2024 31 December 2024 31 December 2024
USUSD ' 000 USUSD ' 000 USUSD ' 000
Interest-bearing borrowings 35,951 10,425 46,376
Trade and other payables 3,671 1,651 5,322
Redeemable preference shares 12,544 - 12,544
Deferred tax liabilities - non current 3,111 144 3,255
Current tax payable - 23 23
Proportional shareholder loans - 721 721
55,277 12,964 68,241
13. OTHER dEVELOPMENTs
interest bearing borrowings classification
As disclosed in Note 17 of the audited financial statements for the year ended 30 June 2024, the Group classified a significant portion of its borrowing facilities as current liabilities at that reporting date. This classification was due to the Group not meeting certain financial covenants as of 30 June 2024 and not having secured the necessary waivers or condonements by that date.
However, prior to the approval of the annual financial statements in October 2024, the Group successfully obtained the required waivers and condonements from its lenders. In accordance with IAS 1: Presentation of Financial Statements, as the waivers and condonements were not in place as of 30 June 2024, the Group did not have an unconditional right to defer settlement of the impacted borrowings for at least 12 months from that date, resulting in their classification as current liabilities. For the period ended 31 December 2024, the Group is operating within the parameters set by the waivers and condonements. Accordingly, the borrowing facilities have been classified based on their contractual maturities.
drive in trading
As previously disclosed in Note 41 of the audited financial statements for the year ended 30 June 2024, the Group has finalized transaction agreements to restructure the Drive in Trading obligation over a three-year period. Under the new terms, the Group's obligation has been restructured as a liability of USUSD17.5 million payable to the Public Investment Corporation SOC Limited of South Africa ("PIC") with a three-year maturity and an interest rate of 3M SOFR plus a spread of 5.28%. Under the previous structure, the obligation was classified as "Other financial liabilities" as its value fluctuated in line with Grit's share price. Following the restructuring, the obligation which will be held at amortized cost has been reclassified as a "Related party loan payable," given that PIC, as a shareholder of Grit, qualifies as a related party.
14. Segmental reporting
Consolidated segmental analysis
The Group reports on a segmental basis in terms of geographical location and sector. Geographical location is split between Senegal, Morocco, Mozambique, Zambia, Kenya, Ghana and Mauritius, as relevant to each reporting year. Following the integration of Gateway Real Estate Africa within the Group the Geographical segment has been extended to now include Ethiopia, Mali and Nigeria. The Group sectors are split into Hospitality, Retail, Office, Light industrial, Corporate Accomodation, Healthcare, Data Centre, Coporate, Development management and other investments.
Senegal Morocco Mozambique Zambia Kenya Ghana Mauritius Nigeria Uganda Mali Ethiopia Total
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000
Gross rental income 1,081 3,383 11,243 2,741 3,994 1,766 5,241 1,273 495 - 5,459 36,676
Straight-line rental 15 27 23 - 816 (41) 150 468 (19) - 872 2,311
income accrual
Gross property 1,096 3,410 11,266 2,741 4,810 1,725 5,391 1,741 476 - 6,331 38,987
income
Property operating (8) (2,155) (2,005) (251) (790) (328) (342) (10) (344) - (593) (6,826)
expenses
Net property income 1,088 1,255 9,261 2,490 4,020 1,397 5,049 1,731 132 - 5,738 32,161
Other income - - - - - - 171 - - - (29) 142
Administrative (47) (185) (381) (9) (103) (185) (7,547) (112) (186) (338) (171) (9,264)
expenses
Net impairment
(charge) / credit on - - (144) - (31) - (147) - (64) - - (386)
financial assets
Profit / (loss) from 1,041 1,070 8,736 2,481 3,886 1,212 (2,474) 1,619 (118) (338) 5,538 22,653
operation
Fair value
adjustment on (720) (2,376) (7,905) 194 (4,065) (913) (905) (358) (1,729) - (751) (19,528)
investment
properties
Fair value
adjustment on other - - - - 20 - - - - - - 20
financial asset
Fair value
adjustment on
derivatives - - - - 66 - (1,577) - - - - (1,511)
financial
instruments
Share of profits /
(losses) from - - - 1,844 (335) (907) - - - - - 602
associates and joint
ventures
Impairment of loans
and other - (78) - - - - 78 - - - - -
receivables
Foreign currency (91) 191 7 4 (46) 148 1,001 1 1 (1) 3,440 4,655
gains / (losses)
Other transaction - - (2) - - - (3,968) - - - - (3,970)
costs
Profit / (loss)
before interest and 230 (1,193) 836 4,523 (474) (460) (7,845) 1,262 (1,846) (339) 8,227 2,921
taxation
Interest income - (1,513) 2 - (1,091) 131 6,327 - (494) - (427) 2,935
Finance costs (87) (1,453) (7,827) - (2,856) (994) (16,426) (666) (434) - (2,089) (32,832)
Profit / (loss) for
the year before 143 (4,159) (6,989) 4,523 (4,421) (1,323) (17,944) 596 (2,774) (339) 5,711 (26,976)
taxation
Taxation - (151) 1,237 (212) 352 514 (151) - - 1 (53) 1,537
Profit / (loss) for
the year after 143 (4,310) (5,752) 4,311 (4,069) (809) (18,095) 596 (2,774) (338) 5,658 (25,439)
taxation
Reportable segment
assets and
liabilities
Non-current assets
Investment 31,571 64,594 283,252 62,373 110,574 38,505 22,176 28,610 18,395 16,686 77,040 753,776
properties
Deposits paid on
investment - - - - - - 5,050 - - - - 5,050
properties
Property, plant and - (4) 103 - 8 6 14,440 - 60 - 440 15,053
equipment
Intangible assets - (9) - - - - 2,355 - - - - 2,346
Investment in
associates and joint - - - 37,853 10,604 3,483 - - - - - 51,940
ventures
Related party loans - - - - - - 206 - - - - 206
receivable
Other loans - - 1,516 - - - 21,169 - - - - 22,685
receivable
Derivative financial - - - - - - 602 - - - - 602
instruments
Trade and other - 156 - - 2,244 - - - - - - 2,400
receivables
Deferred tax - 1,028 7,140 - 1,870 1,782 1,003 - 43 - (345) 12,521
Total non-current 31,571 65,765 292,011 100,226 125,300 43,776 67,001 28,610 18,498 16,686 77,135 866,579
assets
Current assets
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Trade and other 1,223 2,676 5,495 (131) 6,153 1,133 20,244 (20) 229 255 3,396 40,653
receivables
Current tax - - 1,038 - 1,190 1,653 653 - 27 - 191 4,752
receivable
Related party loans - - - - - - 8,724 - - - - 8,724
receivable
Derivative financial - - - - 66 - (66) - - - - -
instruments
Cash and cash 264 81 2,143 190 1,167 256 8,324 635 624 60 2,394 16,138
equivalents
1,487 2,757 8,676 59 8,576 3,042 37,879 615 880 315 5,981 70,267
Non-current assets
classified as held - - - - - - 78,381 - - - - 78,381
for sale
Total assets 33,058 68,522 300,687 100,285 133,876 46,818 183,261 29,225 19,378 17,001 83,116 1,015,227
Liabilities
Total liabilities 3,634 44,050 190,172 5,650 63,126 23,192 302,466 11,698 8,666 41 34,934 687,629
Net assets 29,424 24,472 110,515 94,635 70,750 23,626 (119,205) 17,527 10,712 16,960 48,182 327,598
Light Corporate Data Development
Hospitality Retail Office industrial Accommodation Healthcare Centre Management Corporate Total
USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000 USUSD'000
Gross property 3,103 7,674 11,251 2,924 10,415 1,244 1,742 - 634 38,987
income
Property operating (8) (3,279) (1,899) (208) (1,421) (18) (13) - 20 (6,826)
expenses
Net property income 3,095 4,395 9,352 2,716 8,994 1,226 1,729 - 654 32,161
Other income - - 127 - (30) - - 3 42 142
Administrative (235) (458) (674) (43) (402) (57) (104) (911) (6,380) (9,264)
expenses
Net impairment
(charge) / credit on - (96) (21) - (144) - - - (125) (386)
financial assets
Profit/(loss) from 2,860 3,841 8,784 2,673 8,418 1,169 1,625 (908) (5,809) 22,653
operations
Fair value
adjustment on (720) (3,909) (10,892) (2,561) (460) (628) (358) - - (19,528)
investment
properties
Fair value
adjustment on other - - - 20 - - - - - 20
financial asset
Fair value
adjustment on
derivatives - - 66 - - - - - (1,577) (1,511)
financial
instruments
Share of profits /
(losses) from - 1,844 (907) - (335) - - - - 602
associates and joint
ventures
Foreign currency (65) 194 110 (5) 3,443 231 1 (4) 749 4,654
gains / (losses)
Other transaction - (2) - - - - - (3,100) (868) (3,970)
costs
Profit/(loss) before
interest and 2,075 1,968 (2,839) 127 11,066 772 1,268 (3,998) (7,519) 2,920
taxation
Interest income 432 (2,279) 2,486 (794) (2,805) 97 - 4 5,794 2,935
Finance costs (2,088) (2,157) (11,198) (1,498) (1,825) (430) (669) (72) (12,895) (32,832)
Profit / (loss) for
the year before 419 (2,468) (11,551) (2,165) 6,436 439 599 (4,066) (14,620) (26,977)
taxation
Taxation (67) (350) 2,959 411 (1,333) (23) 1 - (61) 1,537
Profit / (loss) for
the year after 352 (2,818) (8,592) (1,754) 5,103 416 600 (4,066) (14,681) (25,440)
taxation
Reportable segment
assets and
liabilities
Non-current assets
Investment 31,571 171,961 250,519 61,980 208,274 861 28,610 - - 753,776
properties
Deposits paid on
investment - - - - - - - - 5,050 5,050
properties
Property, plant and - 58 21 - 541 - - 1,235 13,198 15,053
equipment
Intangible assets - 28 - - - - - 2,212 106 2,346
Other investments - - - - - - - 20,062 (20,062) -
Investment in
associates and joint - 37,853 3,483 - 10,604 - - - - 51,940
ventures
Related party loans - - - - - - - - 206 206
receivable
Other loans - - 1,516 - - - - - 21,169 22,685
receivable
Derivative financial - - - - - - - - 602 602
instruments
Trade and other - 1,145 - 1,255 - - - - - 2,400
receivables
Deferred tax (15) 3,207 5,401 1,047 1,869 - - - 1,012 12,521
Total non-current 31,556 214,252 260,940 64,282 221,288 861 28,610 23,509 21,281 866,579
assets
Current assets
Trade and other 1,224 1,970 4,705 6,845 7,349 37 (20) 7,985 10,558 40,653
receivables
Current tax 284 554 2,205 1,099 243 131 - 12 224 4,752
receivable
Related party loans - - - - - - - - 8,724 8,724
receivable
Derivative financial - - 66 - - - - - (66) -
instruments
Cash and cash 265 1,061 3,350 140 2,691 28 634 148 7,821 16,138
equivalents
1,773 3,585 10,326 8,084 10,283 196 614 8,145 27,261 70,267
Non-current assets
classified as held 50,124 - - - - 28,257 - - - 78,381
for sale
Total assets 83,453 217,837 271,266 72,366 231,571 29,314 29,224 31,654 48,542 1,015,227
Liabilities
Total liabilities 58,906 67,402 230,387 31,893 63,930 13,167 11,698 2,265 207,981 687,629
Net assets 24,547 150,435 40,879 40,473 167,641 16,147 17,526 29,389 (159,439) 327,598
Major customers
Rental income stemming from the US Embassy represented approximately 15.7% of the Group's total contractual rental income for the period, with Total 9.7%, Vodacom Mozambique 6.2%, Tamassa Lux 4.9 % and Orbit 4.3%, making up the top 5 tenants of the Group.
15. Basic and diluted earnings per ordinary share
Attributable earnings Weighted average number of Cents per share
shares
Six months Restated Six months Six months Six months Six months Six months
ended ended ended ended ended ended
31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
USUSD'000 USUSD'000 Shares '000 Shares '000 US Cents US Cents
Earnings per share - (24,876) (58,796) 475,253 482,393 (5.23) (12.19)
Basic
Earnings per share - (24,876) (58,796) 475,253 482,393 (5.23) (12.19)
Diluted
16. sUBSEQUENT EVENTS
. No material events have been identified between the balance sheet date and the date of this report that
will have a material impact on the financial results presented.
17. CAPITAL COMMITMENTS
. Club Med Senegal phase 2 development USUSD22.9 million for the period up to June 2026. . DH4 Bamako development - USUSD53.4 million up to January 2027.
18. EPRA financial metrics
18a. EPRA earnings
Basis of Preparation
The directors of GRIT Real Estate Income Group Limited ("GRIT") ("Directors") have chosen to disclose additional non-IFRS measures, these include EPRA earnings, adjusted net asset value, EPRA net asset value, adjusted profit before tax and funds from operations (collectively "Non-IFRS Financial Information").
(MORE TO FOLLOW) Dow Jones Newswires
February 14, 2025 02:01 ET (07:01 GMT)
DJ Abridged Unaudited consolidated results for six -18-
The Directors have chosen to disclose:
EPRA earnings to assist in comparisons with similar businesses in the real estate sector. EPRA earnings
is a definition of earnings as set out by the European Public Real Estate Association. EPRA earnings
represents earnings after adjusting for fair value adjustments on investment properties, gain from
bargain purchase on associates, fair value adjustments included under income from associates, ECL
. provisions, fair value adjustments on other investments, fair value adjustments on other financial
assets, fair value adjustments on derivative financial instruments, and non-controlling interest included
in basic earnings (collectively the "EPRA earnings adjustments") and deferred tax in respect of these
EPRA earnings adjustments. The reconciliation between basic and diluted earnings and EPRA earnings is
detailed in the table below;
EPRA net asset value to assist in comparisons with similar businesses in the real estate sector. EPRA net
asset value is a definition of net asset value as set out by the European Public Real Estate Association.
. EPRA net asset value represents net asset value after adjusting for net impairment on financial assets (
ECL), fair value of financial instruments, and deferred tax relating to revaluation of properties
(collectively the "EPRA net asset value adjustments"). The reconciliation for EPRA net asset value is
detailed in the table below;
adjusted EPRA earnings to provide an alternative indication of GRIT and its subsidiaries' (the "Group")
underlying business performance. Accordingly, it excludes the effect of non-cash items such as unrealised
. foreign exchange gains or losses, straight-line leasing adjustments, amortisation of right of use land,
impairment of loans and deferred tax relating to the adjustments. The reconciliation for adjusted EPRA
earnings is detailed in the table below; and
total distributable earnings to assist in comparisons with similar businesses and to facilitate the
Group's dividend policy which is derived from total distributable earnings. Accordingly, it excludes VAT
. credit utilised on rentals, Listing and set-up costs, depreciation, and amortisation, share based
payments, antecedent dividends, operating costs relating to AnfaPlace Mall's refurbishment costs,
amortisation of lease premiums and profits withheld/released. The reconciliation for total distributable
earnings is detailed in the table below.
In this note, Grit presents European Real Estate Association (EPRA) earnings and other metrics which is non-IFRS financial information.
RESTATED RESTATED
UNAUDITED UNAUDITED UNAUDITED UNAUDITED
31 Dec 2024 31 Dec 2024 31 Dec 2023 31 Dec 2023
Per Share Per Share
USD'000 (Diluted) USD'000 (Diluted)
(Cents Per Share) (Cents Per Share)
EPRA Earnings (8,812) (1.87) 4,162 0.88
Total Company Specific Adjustments (1,706) (0.37) (1,622) 0.34
Adjusted EPRA Earnings (10,518) (2.24) 2,540 0.54
Total Company Specific Distribution Adjustments 5,964 1.27 3,439 1.54
TOTAL DISTRIBUTABLE EARNINGS AVAILABLE TO EQUITY (4,554) (0.97) 5,979 1.27
PROVIDERS
UNAUDITED UNAUDITED UNAUDITED UNAUDITED
31 Dec 2024 31 Dec 2024 30 Jun 2024 30 Jun 2024
Per Share Per Share
USD'000 (Diluted) USD'000 (Diluted)
(Cents Per Share) (Cents Per Share)
EPRA NRV 239,913 50.72 279,006 57.85
EPRA NTA 235,739 49.84 271,862 56.37
EPRA NDV 178,232 37.68 211,938 43.94
Distribution shares UNAUDITED
31 Dec 2024
Shares '000
Weighted average shares in issue 495,092
Less: Weighted average treasury shares for the year (24,793)
Add: Weighted average shares vested shares in long term incentive scheme 2,682
EPRA SHARES 472,981
Less: Vested shares in consolidated entities (2,682)
DISTRIBUTION SHARES 470,299
Grit presents European Real Estate Association (EPRA) earnings and other metrics which is non-IFRS financial information.
UNAUDITED
31 Dec 2024
USUSD'000
EPRA Earnings Calculated as follows:
Basic Loss attributable to the owners of the parent (24,876)
Add Back:
- Fair value adjustment on investment properties 19,528
- Fair value adjustments included under income from associates 135
- Change in value on other financial asset (20)
- Change in value on derivative financial instruments 1,511
- Acquisition costs not capitalised 3,970
- Deferred tax in relation to the above (2,536)
- Non-controlling interest included in basic earnings (6,524)
EPRA EARNINGS (8,812)
EPRA EARNINGS PER SHARE (DILUTED) (cents per share) (1.87)
Company specific adjustments
- Unrealised foreign exchange gains or losses (non-cash) (4,568)
- Straight-line leasing and amortisation of lease premiums (non-cash rental) (1,514)
- Profit or loss on disposal of property, plant and equipment 52
- Amortisation of right of use of land (non-cash) 35
- Impairment of loan and other receivables 386
- Non-controlling interest included above 3,881
- Deferred tax in relation to the above 22
Total Company Specific adjustments (1,706)
ADJUSTED EPRA EARNINGS (10,518)
ADJUSTED EPRA EARNINGS PER SHARE (DILUTED) (cents per share) (2.24)
COMPANY SPECIFIC ADJUSTMENTS TO EPRA EARNINGS
1. Unrealised foreign exchange gains or losses
The foreign currency revaluation of assets and liabilities in subsidiaries gives rise to non-cash gains
and losses that are non-cash in nature. These adjustments (similar to those adjustments that are recorded
to the foreign currency translation reserve) are added back to provide a true reflection of the operating
results of the Group.
2. Straight-line leasing (non-cash rental)
Straight-line leasing adjustment and amortised lease incentives under IFRS relate to non-cash rentals
over the period of the lease. This inclusion of such rental does not provide a true reflection of the
operational performance of the underlying property and are therefore removed from earnings.
3. Amortisation of intangible asset (right of use of land)
Where a value is attached to the right of use of land for leasehold properties, the amount is amortised
over the period of the leasehold rights. This represents a non-cash item and is adjusted to earnings.
4 Impairment on loans and other receivables
Provisions for expected credit loss are non-cash items related to potential future credit loss on non-
property operational provisions and is therefore added back to provide a better reflection of underlying
property performance. The add back excludes and specific provisions for against tenant accounts.
5 Non-Controlling interest
Any non-controlling interest related to the company specific adjustments.
6. Other deferred tax (non-cash)
Any deferred tax directly related to the company specific adjustments.
(MORE TO FOLLOW) Dow Jones Newswires
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DJ Abridged Unaudited consolidated results for six -19-
18b. Company distribution calculation
UNAUDITED
31 Dec 2024
USUSD'000
Adjusted EPRA Earnings (10,518)
Company specific distribution adjustments
- VAT Credits utilised on rentals 1 1,993
- Depreciation and amortisation 2 372
- Right of use imputed leases 19
- Amortisation of capital funded debt structure fees 3 3,185
- Deferred tax in relation to the above 479
- Non-controlling interest included above (84)
Total company specific distribution adjustments 5,964
TOTAL DISTRIBUTABLE EARNINGS (BEFORE PROFITS WITHELD) (4,554)
DISTRIBUTABLE INCOME PER SHARE (DILUTED) (cents per share) (0.97)
DIVIDEND PER SHARE (cents share) -
AVAILABLE FOR FUTURE DISTRIBUTIONS (cents per share) -
COMPANY DISTRIBUTION NOTES IN TERMS OF THE DISTRIBUTION POLICY
1. VAT credits utilised on rentals
In certain African countries, there is no mechanism to obtain refunds for VAT paid on the purchase price
of the property. VAT is recouped through the collection of rentals on a VAT inclusive basis. The cash
generation through the utilisation of the VAT credit obtain on the acquisition of the underlying property
is thus included in the operational results of the property.
2. Depreciation and amortisation
Non-cash items added back to determine the distributable income.
3. Amortisation of capital funded debt structure fees
Amortisation of upfront debt structuring fees.
OTHER NOTES
The abridged unaudited consolidated financial statements for the six months period ended 31 December 2024 ("abridged unaudited consolidated financial statements") have been prepared in accordance with the measurement and recognition requirements of International Financial Reporting Standards ("IFRS"), the FCA Listing Rules and the SEM Listing Rules. The accounting policies are consistent with those of the previous annual financial statements.
The Group is required to publish financial results for the six months ended 31 December 2024 in terms of SEM Listing Rule 15.44 and the FCA Listing Rules. The Directors are not aware of any matters or circumstances arising subsequent to the period ended 31 December 2024 that require any additional disclosure or adjustment to the financial statements. These abridged unaudited consolidated financial statements were approved by the Board on 14 February 2025.
Copies of the abridged unaudited consolidated financial statements, and the statement of direct and indirect interests of each officer of the Company pursuant to rule 8(2)(m) of the Mauritian Securities (Disclosure Obligations of Reporting Issuers) Rules 2007, are available free of charge, upon request at the Company's registered address. Contact Person: Ali Joomun.
Forward-looking statements
This document may contain certain forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.
Any forward-looking statements made by, or on behalf of, Grit speak only as of the date they are made, and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Grit does not undertake to update forward-looking statements to reflect any changes in its expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.
Information contained in this document relating to Grit or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance.
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.
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ISIN: GG00BMDHST63 Category Code: IR TIDM: GR1T LEI Code: 21380084LCGHJRS8CN05 Sequence No.: 376054 EQS News ID: 2086171 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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