CAPITAL - INTERIM RESULTS AND DIVIDEND DECLARATION (AMENDMENT)

CAPITAL PROPERTY FUND
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 2000 ARE AS FOLLOWS:
CAPITAL PROPERTY FUND
("CAPITAL")

                                            2000                 1999

                                            UNAUDITED            UNAUDITED
                                            R'000                R'000
TURNOVER                                    24 538               25 406
NET INCOME DERIVED FROM

FIXED PROPERTY COMPANIES                    20 592               20 981
INTEREST RECEIVED                     5 424              5 539

SERVICE FEE                           (944)              (722)

OTHER EXPENDITURE                     (822) 3 658        (721)   4 096
NET INCOME AVAILABLE FOR DISTRIBUTION       24 250               25 077
RETAINED INCOME AT BEGINNING OF PERIOD      3                    3

TOTAL INCOME AVAILABLE FOR DISTRIBUTION     24 253               25 080
DIVIDEND DISTRIBUTION                       24 250               25 077
RETAINED INCOME AS AT 30 JUNE               3                    3

UNITS IN ISSUE AT 30 JUNE                   146 838 565          146 838 565
EARNINGS AND DIVIDENDS PER UNIT (CENTS)     16,51                17,07
ABRIDGED BALANCE SHEET AT 30 JUNE

                                            2000                  1999
                                            R'000                 R'000
CAPITAL EMPLOYED                            314 693               305 705
REPRESENTED BY:

INVESTMENT IN PROPERTY                      276 523               259 234
CURRENT ASSETS                       62 731              72 151

CURRENT LIABILITIES                  24 561              25 680

NET CURRENT ASSETS                          38 170                46 471
                                            314 693               305 705
COMMENT
1. INCOME

NET INCOME AVAILABLE FOR DISTRIBUTION FOR THE PERIOD ENDED 30 JUNE 2000
TOTALLED R24,25 MILLION (16,51 CENTS PER UNIT). TURNOVER FROM PROPERTY
COMPANIES SHOWED A DECLINE OF 3,4% WHEN COMPARED TO THE SAME PERIOD LAST YEAR.
HOWEVER, WHEN COMPARING THE CHANGE IN TURNOVER FOR THE REMAINING PROPERTIES,
AFTER ADJUSTING FOR PROPERTIES SOLD DURING 1999, RENTALS HAVE IN FACT GROWN BY
12% OVER THE PERIOD. EARNINGS PER UNIT ARE 3,3% LESS THAN IN THE CORRESPONDING
PERIOD IN 1999 REFLECTING THE LOWER INTEREST RATES PREVAILING, WHICH RATES WERE
LOWER THAN THE EXIT YIELDS ON PROPERTIES SOLD.
2. PORTFOLIO UPDATE

DURING THE PERIOD TO DATE, CAPITAL CONTINUED ITS STRATEGY OF DISPOSING OF
SELECTED PROPERTIES WHICH NO LONGER MET ITS INVESTMENT CRITERIA.

THE SALE OF ERF 191 BROMHOF WAS FINALISED AT THE BEGINNING OF THE FINANCIAL
YEAR FOR A CONSIDERATION OF R550 000. THE PROFIT OF R190 442 WAS TRANSFERRED TO
CAPITAL RESERVES.

SUBJECT TO CONDITIONS PRECEDENT BEING MET, FURTHER SALES AMOUNTING TO R11
MILLION ARE IN PROCESS. THE PROCEEDS WILL BE USED TO FUND FURTHER INVESTMENT
AND IMPROVE THE PROFILE OF THE INVESTMENTS HELD BY THE FUND.
ACQUISITIONS AND DEVELOPMENTS

CONSTRUCTION OF THE R39 MILLION COMMERCIAL DEVELOPMENT WHICH WILL HOUSE THE
PRETORIA BRANCH OF PRICEWATERHOUSECOOPERS IN MENLYN, PRETORIA IS ON TARGET FOR
COMPLETION EARLY IN OCTOBER 2000.

CAPITAL IS PROCEEDING WITH THE DEVELOPMENT OF A 5 000 M2 WAREHOUSING PROJECT AT
CAPITAL HILL, MIDRAND. EMPHASIS HAS BEEN PLACED ON DESIGN FLEXIBILITY TO CATER
FOR VARYING TENANT REQUIREMENTS WITH REGARDS TO FLOOR AREA, AND OFFICE TO
WAREHOUSE RATIOS. THE TOTAL COST OF THE PROJECT AMOUNTS TO R11 MILLION WITH AN
INITIAL YIELD OF 14%, WHICH IS GUARANTEED IN THE FIRST YEAR.
4. FUNDS

ALLOWING FOR THE PROPOSED ACQUISITIONS AND DISPOSALS, THE FUND'S REMAINING
CAPITAL ACCOUNT AMOUNTS TO R16 MILLION. THE MANAGEMENT COMPANY'S POLICY IS TO
MAINTAIN A FLOAT OF R10 MILLION TO PROVIDE FOR EXTENSIONS AND REFURBISHMENT TO
THE EXISTING PORTFOLIO.
5. OUTLOOK

ALTHOUGH NET RENTAL EARNINGS FOR 2000 ARE EXPECTED TO REFLECT SOME GROWTH, THE
EFFECTS OF LOWER INTEREST RATES AND INCREASED SERVICE FEES DERIVING FROM HIGHER
UNIT PRICES WILL RESULT IN EARNINGS PER UNIT FOR THE YEAR MARGINALLY BELOW
THOSE OF 1999.
DIVIDEND DECLARATION

NOTICE IS HEREBY GIVEN OF THE DECLARATION OF DIVIDEND NO. 34 IN RESPECT OF THE
INCOME DISTRIBUTION PERIOD 1 JANUARY 2000 TO 30 JUNE 2000. THE DIVIDEND AMOUNTS
TO 16,51 CENTS PER UNIT AND IS PAYABLE TO UNITHOLDERS REGISTERED AS SUCH IN THE
BOOKS OF THE FUND AT THE CLOSE OF BUSINESS ON 18 AUGUST 2000. DIVIDEND CHEQUES
WILL BE POSTED ON OR ABOUT 31 AUGUST 2000.
ON BEHALF OF THE BOARD
JHI REAL ESTATE LIMITED
SECRETARIES
4 AUGUST 2000
REGISTERED OFFICE:

1ST FLOOR, JHI HOUSE, 11 CRADOCK AVENUE, ROSEBANK, JOHANNESBURG, 2196
PO BOX 2100, PARKLANDS, 2121
TRANSFER SECRETARIES:

MERCANTILE REGISTRARS LIMITED, 8TH FLOOR, 11 DIAGONAL STREET, JOHANNESBURG, 200
PO BOX 1053, JOHANNESBURG, 2000
PROPERTY FUND MANAGERS LTD
CO. REG. NO. 80/09531/06