NOTES TO THE FINANCIAL STATEMENTS – NOTE 37

37. Events after the reporting date
37.1 Disposal of investment property
Subsequent to year-end, Somerset Value Mart and Glenfield Office Park were sold for R185 million and R180 million respectively. Transfer of Somerset Value Mart is imminent while transfer of Glenfield Office Park is subject to approval from competition authorities. The proceeds from both disposals will be applied to reduce debt.
   
37.2 Refinancing of debt capital market (DCM) funding
Subsequent to year-end, a maturing South African bank debt facility amounting to R1,2 billion was refinanced with DCM funding (three, four and five-year corporate bonds). This increased the ratio of DCM funding to total debt to approximately 25% (30 June 2016: 15%). All of Hyprop’s DCM funding is unsecured.
   
37.3

Issue of shares and antecedent dividend
Subsequent to year-end, 5,2 million new shares were issued at R135 per share. The issue of new shares after year-end but prior to the record date for the final distribution resulted in an antecedent dividend amounting to R16,7 million*. In accordance with industry best practice, the antecedent dividend was added back in the calculation of distributable earnings for the year.

The proceeds of the equity issue will be applied to the reduction of Rand-denominated debt and to ongoing capital expenditure in the South African portfolio.

* In the summarised consolidated results published on 2 September 2016, the antecedent dividend was reflected as R32,1 million. The correct figure is R16,7 million. The higher number was calculated by applying the antecedent dividend per share to the full year dividend, while the more correct method for calculating the antecedent dividend calculates the amount based on the final dividend only.

The antecedent dividend is a theoretical amount, determined and disclosed only by industry best practice. The above change therefore has no impact on the actual dividend paid (either in total or per share) or on earnings per share or headline earnings per share. The change also has no impact on the IFRS compliant group or company annual financial statements.

NOTES TO THE FINANCIAL STATEMENTS – NOTE 37