PUTPROP LIMITED - Putprop Limited short form announcement for the six months ended 31 December 2022 and Dividend Declaration

Putprop Limited short form announcement for the six months ended 31 December 2022 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”)

Putprop Limited short form announcement
for the six months ended 31 December 2022
and Dividend Declaration

Financial Highlights
Rentals R64 930 (2021: R60 314)
Operating Profit R34 391 (2021: R36 064)
HEPS 25.52 cents (2021: 43.24 cents)
Operating profit margin 52.9% (2021: 59.5%)
DPS 4.25 cents (2021: 4.25 cents)
Net asset value of 1 614 cents per share (December 2021: 1 479 cents)
Annual escalation in contractual rental income of 6,7% (2021: 7.1%)
Total Debt R519 431 million (June 2022: R448 556)

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 sectors of a JSE listed property company.

The property portfolio at present comprises 15 (June 2022: 15) strategically located properties, situated primarily
in the Gauteng geographical area. The total Gross Lettable Area (‘GLA’) of the invested properties is 101 079m2 (June
2022: 99 848m2) with a value of R1. 122 billion (June 2022: R985.4 million). Investment property held for resale was
R21.0 million (June 2022: R38.2 million).

The Group experienced a difficult 6 month trading period to 31 December 2022. High diesel costs resulting from daily
load shedding (with the Summit Place property particularly affected), resulted in additional significant operating
costs. Taken together with the multiple interest rate increases over the past 18 months, the Group was unable to
improve on its reported December 2021 earnings.

Gross property revenue for the six months ended 31 December 2022, including straight-line income adjustments and
operating recoveries, increased from R60.3 million at December 2021 to R64.9 million as at the date of this report, an
increase of 7.6%.

Property expenses increased by 22.7% to R24.5 million (2021: R19.9 million), largely due to cost of diesel fuel, to
accommodate load shedding.

Operating profit before finance charges was down 4.6% at R34.3 million (December 2021: R36.0 million).
Net profit before taxation and fair value adjustments was also down at R15.3 million (December 2021: R26.9 million).

Headline Earnings Per Share (‘HEPS’), decreased from 43.24 cents per share to 25.52 cents per share.

During this period the directors thought it prudent to write down the value of the property portfolio by R4.7 million
(June 2022: R24.3 million up).

Trade and other receivables increased from R31.8 million at June 2022 to R35.6 million at December 2022. This increase
arose predominately from deteriorations in collections from large tenants.

Cash reserves decreased from R19.0 million in June 2022 to R9.9 million as at December 2022.

The Group’s overdraft facility reflected a decrease of R7.8 million, from R19.6 million at June 2022 to R11.8 million
at December 2022.

Loan liabilities increased from R448.5 million in June 2022 to R519.3 million at December 2022. The Mamelodi Square
loan is included in the December 2022 balance, and gives rise to this increase.

As at 31 December 2022, the property portfolio reflected a 3.7% vacancy (June 2022: 2.2%). The Mamelodi Square
development accounted for 2.5% of the vacancy profile; 2 304m2 of leases are not yet concluded at the date of this
report.

R’000                                    6 Months        6 Months                %
                                         Dec 2022        Dec 2021           change
Rental income and recoveries               64 930          60 314              7.6
Operating profit                           34 391          36 064             (6.6)
Earnings per share (cents)                  18.22           26.13            (30.3)
Headline earnings per share (cents)         25.52           43.24            (40.9)
Net asset value per share (cents)           1 614           1 479              9.1
Dividend per share (cents)                   4.25            4.25                -

Dividend Distribution
Payment of interim distribution - ordinary interim dividend number 67

Notice is hereby given that the Board has declared an interim gross cash dividend (‘the dividend’) for the six months
ended 31 December 2022 of 4.25 cents per ordinary share (December 2021: 4.25 cents per ordinary share).

The dividend is payable to shareholders recorded in the register of the Company at close of business on Friday, 31
March 2023.

The current local Dividend Withholding Tax (‘DWT’) rate is 20%. The gross local dividend amount is 4.25 cents per share
for shareholders exempt from paying DWT whilst the net local dividend payable is 3.40 cents per share for shareholders
liable to pay DWT. The issued share capital of Putprop is 42 409 181 (2022: 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                           Wednesday, 8   March   2023
Last date to trade to participate           Tuesday, 28   March   2023
Trading commences ex dividend             Wednesday, 29   March   2023
Record date                                  Friday, 31   March   2023
Date of payment                               Monday, 3   April   2023

Share certificates may not be dematerialised or rematerialised between Wednesday, 29 March 2023 and Friday, 31 March
2023, both days inclusive.

This announcement is a summarised version of the full announcement in respect of Putprop’s Unaudited Condensed Group
results for the six months ended 31 December 2022. 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 8 March 2023 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/2023/jse/isse/ppr/interim23.pdf
The short form announcement is the responsibility of the directors.

Corporate Information
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”)

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 *^,
Anna Carleo (Executive), René Styber*^

* Independent     ^ Non-executive      #British

Date: 08-03-2023 02:55:00
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