Wrap Text
Unaudited Condensed Interim Results for the six months ended 31 December 2023 and Dividend Declaration
Putprop Limited
Incorporated in the Republic of South Africa
(Registration number 1988/001085/06)
Share code: PPR ISIN: ZAE000072310
("Putprop" or "the company" or "the Group")
Unaudited Condensed Interim Results
for the six months ended 31 December 2023 and Dividend Declaration
Financial Capital
Rentals and recoveries
R70.007m December 2022: R64.930m
Operating Profit
R38.282m December 2022: R34.391m
EPS
21.91 cents
December 2022: 18.22 cents
HEPS
22.37 cents December 2022: 25.52 cents
Operating profit margin
64.4% December 2022: 52.9%
Cost-to-income ratio
35.56% December 2022: 37.70%
Net asset value of
1 629 cents per share (December 2022: 1 614 cents)
Loan Liabilities
R483.2m (June 2023: R504.9m)
Manufactured Capital
Total GLA
97 601m2 June 2023: 97 601 m2
Leverage Ratio
0.43 times June 2023: 0.46 times
DPS
6 cents December 2022: 4.25 cents
63% A Grade Tenants June 2023: 52%
Retention of 92% of tenants whose
lease expired during the review period. (June 2023: 47.3%)
Introduction
Putprop is a property investment company, listed on the Main Board
of the JSE Limited ('JSE') under the real estate sector. The Company
offers investors an opportunity to participate in the industrial,
commercial, retail and residential segments of a JSE listed property
company.
The property portfolio at present comprises of 13 (June 2023: 13)
strategically located properties, situated primarily in the Gauteng
geographical area. The total Gross Lettable Area ('GLA') of the
invested properties is 97 601m2 (June 2023: 97 601m2) with a value
of R1. 095 billion (June 2023: R1. 095 billion). Investment property
classified as held for sale was R18 million (June 2023: Nil).
The South African property market continued to operate under difficult
conditions during the first half of the 2024 financial year.
Power supply issues, elevated interest rates, rising operating costs
(in particular above inflation increases in municipal rates), together
with the poor municipal service delivery read in conjunction with the
South African and Global economies indicate a continuation of a low
growth cycle. The office market continues to be the worst performer of
all the property segments due to the significant oversupply of space.
We continue to see a definite trend of large corporates returning to
the formal office environment either in the form of a hybrid model
of working off site for 2 days and in formal offices for 3 days, or a
full return to the office environment. This will be essential for the
commercial segment of the property sector to recover from its current
extremely precarious position.
The industrial sector continues to be best placed with low vacancy
rates and a slight improvement in Nominal rental growth.
Retail sales reflected a slowdown of the growth experienced in late
2022 and early 2023 as the cumulative effect of interest rate rises
began to impact consumers. Festive season sales at time of reporting
were not expected to reach hoped for volumes by retailers.
We expect conditions to remain challenging in the 2024 cycle. Several
large players in the REIT property space have a negative view of the
year ahead, considering the poor ratings of listed property funds.
Putprop, as a niche player in this space is slightly better placed but
is not totally immune to these market forces.
Dividend Distribution
Payment of interim distribution - ordinary interim dividend number 69
Notice is hereby given that the Board has declared an interim gross
cash dividend ('the dividend') for the six months ended 31 December
2023 of 6 cents per ordinary share (December 2022: 4.25 cents per
ordinary share).
The dividend is payable to shareholders recorded in the register of
the Company at close of business on Thursday, 28 March 2024.
The current local Dividend Withholding Tax ('DWT') rate is 20%. The
gross local dividend amount is 6 cents per share for shareholders
exempt from paying DWT whilst the net local dividend payable is 4.8
cents per share for shareholders liable to pay DWT. The issued share
capital of Putprop is 42 409 181 (2023: 42 409 181) shares.
Putprop's income tax reference number is 9100097717. This dividend is
payable from income reserves.
The salient dates relating to the dividend are as follows:
Declaration date Tuesday, 5 March 2024
Last date to trade to participate Monday, 25 March 2024
Trading commences ex dividend Tuesday, 26 March 2024
Record date Thursday, 28 March 2024
Date of payment Tuesday, 2 April 2024
Share certificates may not be dematerialised or rematerialised between
Tuesday, 26 March 2024 and Thursday, 28 March 2024, both days
inclusive.
This announcement represents a summary of the information contained
in Putprop's Unaudited Condensed Group results for the six months
ended 31 December 2023. As such, it does not contain full or complete
details pertaining to the Group's results. Any investment decisions
should be based on consideration of the full announcement as published
on SENS on 5 March 2024 and on the Group's website at www.putprop.
co.za. The full announcement is also available for inspection at the
registered offices of Putprop and that of our Sponsor, Merchantec
Capital, during business hours. Copies may also be obtained at no cost
on request from the Company Secretary, who is contactable on +27 11
325 6363 or putprop@acorim.co.za. The full announcement can also be
accessed online at
https://senspdf.jse.co.za/documents/2024/jse/isse/ppr/interim24.pdf
The short form announcement is the responsibility of the directors.
Corporate Information
Registered and Postal Address:
Putprop House, 22 Impala Road
Chislehurston, Sandton, 2196
Company Secretary:
Acorim Proprietary Limited
13th Floor, Illovo Point
68 Melville Road,
Illovo, Sandton, 2196
Sponsor:
Merchantec Capital,
13th Floor, Illovo Point
68 Melville Road,
Illovo, Sandton, 2196
Transfer Secretaries:
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue, 2196
Rosebank, Johannesburg, 2196
P O Box 61051,
Marshalltown, 2107
Directors:
Bruno Carleo (Chief Executive Officer), James Smith# (Chief Financial
Director), Daniele Torricelli*^ (Chairman), Hayden Hartley*^, Gerrit
Van Heerden *^, René Styber*^
* Independent ^ Non-executive #British
Date: 05-03-2024 12:00:00
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