The Company and Group financial statements are prepared on the basis of accounting policies applicable to a going concern. This basis takes into account that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities will occur in the ordinary course of business.

In assessing the Company and Group's ability to continue as a going concern, the board and the Audit and Risk committee have reviewed the Company and Group's budget and cashflow forecasts, available cash balances, existing unutilised and new term loans, revolving credit facilities, and the Group's debt maturity profile. Cognisance was also taken of the current level of economic uncertainty as a result of Covid-19, the effects of which are likely to continue for some time.

The impact of the Covid-19 lockdown on the South African economy, and the retail sector in particular, was severe. Financial performance of the Group's portfolios for the year ended 30 June 2020 was adversely impacted by Covid-19, as we assisted tenants by granting discounts on contractual rentals (see note D1.1), and property valuations suffered a decline (see note E1).

For the year ended 30 June 2020, the Company and Group recorded losses of R3 107 million and R3 523 million respectively, due to the revaluation of their investment property portfolios by R4 277 million and R4 668 million respectively. However, the Group's net income before fair value adjustments for the year was R1 411 million and cash generated by operations was R1 733 million. At 30 June 2020 the Group's net asset value was R19.3 billion, the Group had available cash of R835 million and undrawn revolving credit facilities of R500 million. Given the actions and decisions taken by management subsequent to year end (as set out below), the Group's liquidity position remains strong.

At 30 June 2020 the Company's current liabilities exceeded its current assets by R954 million and the Group's current liabilities exceed its current assets R2 128 million. The increase in current liabilities is due to loans maturing in less than one year (see note H1.2) and the dividend declared to shareholders for the six months ended 31 December 2019 of R788 million (the interim dividend) in February 2020.

The Company and Group propose to settle the short-term borrowings from existing cash balances, and existing or new bank facilities. The following actions and decisions have been taken by management:

• In July 2020 the Company raised R450 million through a new two-year revolving credit facility and R1 725 million in new term loans from banks. These amounts were used to settle maturing bank loans and DCM funding of R2 148 million. The remaining short-term borrowings relate to loans in the Group's sub-Saharan Africa portfolio which will be transferred on disposal of Ikeja City Mall and/or refinanced on maturity in Rands or Dollars. Bank credit approval has been received to refinance $56 million of this remaining debt.
• The board has resolved that it would be prudent to defer its decision on the settlement of the interim dividend and the declaration of the final dividend for the year ended 30 June 2020 until December 2020, or an earlier date should more clarity emerge on the likely future economic environment. See note O2 – Events after the reporting date for details.

Accordingly, the directors consider that the Company and the Group have adequate resources to continue operating for the ensuing 12 months and that it is appropriate to adopt the going concern basis in preparing the Company and Group financial statements.

At 30 June 2020, the Group's net asset value was R19.3 billion and the Group had available cash of R835 million and undrawn revolving credit facilities of R500 million. The Group's liquidity position remains strong, however, having regard to the challenging and unpredictable economic environment, the pressure on the market value of the SA portfolio, the desire to reduce gearing levels and feedback from major institutional shareholders, the board is of the view that the Company should retain as much cash as possible while continuing to meet applicable REIT requirements in terms of the JSE Listings Requirements.

The board is considering different options in regard to settlement of the interim distribution and declaration of the final distribution for the year ended 30 June 2020, having regard to the minimum REIT distribution requirements. It has therefore resolved that it would be prudent to defer its decision on the settlement of the interim dividend and the declaration of the final dividend for the year ended 30 June 2020 until December 2020, or an earlier date should more clarity emerge on the likely future economic environment.

Subsequent to 30 June 2020, key terms have been agreed for the disposal of Ikeja City Mall based on a valuation of $115 million. The purchasers have concluded their due diligence, however, the sale remains subject to regulatory approvals and the purchasers raising the necessary finance to settle 70% of the purchase price. Appropriate security will be registered for the remaining 30% of the purchase price. The outstanding balance will accrue interest at 8% per annum, payable quarterly, until settled. Net proceeds from the disposal will be applied to reduce the Group's remaining US Dollar-denominated debt of $18 million. The investment in Ikeja City Mall has been valued based on the anticipated sale proceeds.

Listed companies that carry out property-related transactions are subject to additional disclosure requirements relating to their property portfolio and financial information in terms of the JSE listings requirements.

Tenants in our portfolio are categorised by grade, although this is largely subjective given the strong retail nature of our portfolio.