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PROPERTY FUND MANAGERS LTD
Co. Reg. No. 80/09531/06
Interim Results and Dividend Declaration
The directors of Property Fund Managers Limited, management company of
Cenprop, announce that the unaudited interim results of the fund for the six
months ended 30 June 2001 are as follows:
PROPERTY FUND
("Cenprop")
ABRIDGED INCOME STATEMENT OF THE FUND Six months to Six months to
30 June 2001 30 June 2000
Unaudited Unaudited
R'000 R'000
TURNOVER (comprising gross rentals
and recoveries) 36 036 36 426
Net income derived from fixed
property companies 29 103 29 912
Interest received 1 879 1 559
Service fee (1 249) (1 082)
Other expenditure (166) 464 (902) (425)
Net income available for distribution 29 567 29 487
Retained income at beginning of year - 10
Total income available for distribution 29 567 29 497
Dividend distribution 29 567 29 487
Units in issue at 30 June 163 490 707 163 490 707
Earnings and dividends per unit (cents) 18,08 18,03
ABRIDGED BALANCE SHEET OF THE FUND AT 30 JUNE
2001 2000
R'000 R'000
Assets
Investment in property 266 144 248 721
Current assets 18 802 35 279
284 946 284 000
Equity and liabilities
Capital and reserves 254 890 254 107
Current liabilities 30 056 29 893
284 946 284 000
ABRIDGED CASH FLOW STATEMENT OF THE FUND
Six months to Six months to
30 June 2001 30 June 2000
Unaudited Unaudited
R'000 R'000
Cash (outflow) /inflow from
operating activities (1 770) 2 857
Cash (outflow) /inflow from
investing activities (18 729) 1 446
Cash inflow from finance activity 11 230 -
Net (decrease) /increase in cash resources (9 269) 4 303
Cash resources at beginning of period 9 666 1 301
Cash resources at end of period 397 5 604
STATEMENT OF CHANGES IN EQUITY OF THE FUND
Capital and reserves of the fund
Balance at beginning of period 254 890 253 954
Net surplus on disposal of fixed property - 143
Net income available for distribution 29 567 29 497
Dividend distribution (29 567) (29 487)
Balance at end of period 254 890 254 107
COMMENT
1. Income
Net income available for distribution for the six-month period ended 30 June
2001 amounts to R29.6 million or 18,08 cents per unit (2000:R29,5 million or
18,03 cents per unit).
2. Portfolio update
The general slow-down in retail sales combined with the disruptive effects
of construction and improvement of The Mall of Rosebank resulted in a
decline in parking and rental income. Pick 'n Pay will open on schedule in
October and the improvements which will be completed in 2002 will
incorporate a number of new retail tenants to further enhance the tenant
mix.
The Arthur Andersen lease over 5 885m2 at Andersen Park, which expired at
the end of June 2001 has been effectively extended until the year end. A
variety of options to maximize unitholder interest are being researched for
this property.
Hutton Court, which had been identified as not forming part of Cenprop's
long-term strategy has been sold for R26,4 million to Capital Property Fund,
where its inclusion is considered to be appropriate and part of a process to
achieve a better balance between industrial and other holdings. In view of
the relationship between Capital and Cenprop, the price was determined by an
independent valuer.
3. Outlook
Having regard to the adverse effects on The Mall referred to above, and to
lower interest rates on funds invested, earnings per unit for the full year
are expected to be marginally lower than those achieved in 2000.
DIVIDEND DECLARATION
Notice is hereby given of the declaration of Dividend No. 44 in respect of
the income distribution period 1 January 2001 to 30 June 2001. The dividend
amounts to 18,08 cents per unit. In terms of Share Transactions Totally
Electronic (STRATE), all trades effected before close of business on 10
August 2001 shall be cum-dividend. All trades effected from 13 August 2001
onwards shall be ex-dividend and the record date shall be 17 August 2001.
Dividend cheques shall be posted on or about 31 August 2001.
On behalf of the Board
JHI Real Estate Limited
Secretaries
3 August 2001
Interim Results and Dividend Declaration
The directors of Property Fund Managers Limited, management company of
Capital, announce that the unaudited interim results of the fund for the six
months ended 30 June 2001 are as follows:
CAPITAL PROPERTY FUND
("Capital")
ABRIDGED INCOME STATEMENT OF THE FUND Six months to Six months to
30 June 2001 30 June 2000
Unaudited Unaudited
R'000 R'000
TURNOVER (comprising gross rentals
and recoveries) 28 086 24 538
Net income derived from fixed
property companies 23 406 20 592
Interest received 1 753 - 5 424 -
Service fee (1 025) - (944) -
Other expenditure (165) 563 (822) 3 658
Net income available for distribution 23 969 24 250
Retained income at beginning of year - 3
Total income available for distribution 23 969 24 253
Dividend distribution 23 969 24 250
Retained income at 30 June - 3
Units in issue at 30 June 146 838 565 146 838 565
Earnings and dividends per unit (cents)
Six months ended 30 June 16,32 16,51
ABRIDGED BALANCE SHEET OF THE FUND
AT 30 JUNE 2001 2000
R'000 R'000
Assets
Investment in property 303 216 276 523
Current assets 33 459 62 731
336 675 339 254
Equity and liabilities
Capital and reserves 312 039 314 693
Current liabilities 24 636 24 561
336 675 339 254
ABRIDGED CASH FLOW STATEMENT OF THE FUND
Six months to Six months to
30 June 2001 30 June 2000
Unaudited Unaudited
R'000 R'000
Cash (outflow) /inflow from
operating activities (253) 6 747
Cash outflow from investing activities (1 010) (21 554)
Net decrease in cash resources (1 263) (14 807)
Cash resources at beginning of period 11 463 59 804
Cash resources at end of period 10 200 44 997
STATEMENT OF CHANGES IN EQUITY OF THE FUND
Capital and reserves of the fund
Balance at beginning of period 312 039 314 499
Net surplus on disposal of fixed property 191
Net income available for distribution 23 969 24 253
Dividend distribution (23 969) (24 250)
Balance at end of period 312 039 314 693
COMMENT
1. Income
Net income available for distribution for the period ended 30 June 2001
totalled R23,97 million or 16,32 cents per unit (2000:R24,25 million or
16,51 cents per unit). If the comparative figures for 2000 are adjusted to
eliminate the effect of the capitalisation of interest (see note 3 below),
earnings for the current period are 5,5% above those achieved in 2000.
2. Portfolio update
In line with Capital's intention to dispose of properties which no longer
meet its investment criteria, Lot 11 Pineside has been sold for a total
consideration of R11 million. The transfer of the property has been effected
at the end of July resulting in a net surplus of R5,3 million to the fund.
The sales of a further two properties totalling R9 million are currently
being finalised.
Capital has purchased Hutton Court, Hyde Park for R26,4 million from
Centrecity Property Fund at a yield of 12,5%. This acquisition is considered
to be appropriate and part of a process to achieve a better balance between
industrial and other holdings. In view of the relationship between Capital
and Cenprop, the price was determined by an independent valuer.
3. Capitalisation of interest
Standard practice within the Property Unit Trust industry is to capitalise
interest and expenses into the capital cost of projects during development,
provided that this does not inflate the book value of any property beyond
its market value. The net effect of this practice is to raise income earned
on a project out of the capital reserves of a fund. This has been the case
with Capital Hill Commercial Estate (Bellador Properties (Pty) Ltd.) in
which Capital Property Fund owns a 35% stake.
In order to ensure that the book value of Bellador is not over-stated, a
strategic decision has been made to discontinue capitalising interest and
expenses on this property with effect from 1 January 2001.
4. Outlook
Despite an increase in rental income and positive contributions from recent
developments by the fund, the impact of lower interest rates and the
cessation of the capitalisation of interest at Capital Hill, will result in
net rental earnings per unit for the year being similar to those of 2000.
DIVIDEND DECLARATION
Notice is hereby given of the declaration of Dividend No. 36 in respect of
the income distribution period 1 January 2001 to 30 June 2001. The dividend
amounts to 16,32 cents per unit. In terms of Share Transactions Totally
Electronic (STRATE), all trades effected before close of business on 10
August 2001 shall be cum-dividend. All trades effected from 13 August 2001
onwards shall be ex-dividend and the record date shall be 17 August 2001.
Dividend cheques shall be posted on or about 31 August 2001.
On behalf of the Board
JHI Real Estate Limited
Secretaries
3 August 2001
REGISTERED OFFICE:
1st Floor, JHI House, 11 Cradock Avenue, Corner Baker Street, Rosebank,
2196, Johannesburg, 2196
PO Box 2100, Parklands, 2121
TRANSFER SECRETARIES:
MERCANTILE REGISTRARS LIMITED, 8th Floor, 11 Diagonal Street, Johannesburg,
2001
PO Box 1053, Johannesburg, 2000
PROPERTY FUND MANAGERS LTD
Co. Reg. No. 80/09531/06
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