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PROPERTY FUND MANAGERS LTD
Co. Reg. No. 80/09531/06
(Registration number 1968/004880/06)
CENTRE CITY PROPERTY FUND
("Cenprop")
Final Results and Dividend Declaration
The directors of Property Fund Managers Limited, the management company of
Cenprop, announce that the final audited results of the fund for the year ended
31 December 2000 are as follows:
2000 1999
R'000 R'000
TURNOVER (comprising gross rentals and
recoveries) 74 108 69 775
Net income derived from
fixed property companies 62 488 58 130
Interest received 1 188 869
Service fee (2 074) (1 749)
Other expenditure (36) (922) (36) (916)
Net income available for distribution 61 566 57 214
Retained income at beginning of year 10 10
Total income available for distribution 61 576 57 224
Dividend distribution 61 566 57 214
Retained income at 31 December 10 10
Units in issue at 31 December 163 490 707 163 490 707
Earnings and dividends per unit (cents)
Six months ended 30 June 18,03 16,95
Six months ended 31 December 19,62 18,05
37,65 35,00
ABRIDGED BALANCE SHEET AT 31 DECEMBER
2000 1999
R'000 R'000
Assets
Investment in property 244 059 250 167
Current assets 43 335 33 728
287 394 283 895
Equity and liabilities
Capital and reserves 254 890 253 954
Current liabilities 32 504 29 941
287 394 283 895
COMMENT
1. Income
Cenprop's annual net income available for distribution was R61,57 million or
37,65 cents per unit (1999: 35,00 cents). This represents a year on year
increase of 7,6%.
This distribution includes the interim distribution in August 2000 of 18,03
cents per unit (1999: 16,95 cents per unit).
2. Portfolio update
Cenprop has continued its policy of maintaining and upgrading its portfolio.
This year saw the pedestrianisation of Cradock Avenue adjacent to The Mall of
Rosebank, the completion and opening of the African Craft Market and the
commencement of the additions at The Mall of Rosebank to house a Pick 'n Pay
supermarket.
The African Craft Market has successfully provided a formal environment and
home for the informal traders who previously operated in unacceptable
conditions from the pavements of Cradock Avenue. The pedestrianisation of the
roadway has assisted the flow of foot traffic within the Rosebank retail node.
The proposed opening of the new Pick 'n Pay in The Mall of Rosebank late in
2001 will see a further increase in foot traffic and parking revenues at The
Mall and enhance it as one of the premier retail shopping centres within South
Africa.
A refurbishment of the internal finishes, entrances and external facades
adjacent to the entrances, is also planned for The Mall of Rosebank, commencing
in 2001 for completion during 2002.
The claim against Shoprite Checkers in respect of outstanding operating costs
at Seadoone Mall was successfully settled with no material impact on earnings.
This property was subsequently sold for R12,5 million with transfer having been
effected in August 2000. The surplus of approximately R936 000 was transferred
to capital reserves.
Despite mixed conditions in the retail and commercial property markets,
Cenprop's portfolio has experienced acceptable rental growth during the period
under review. Decreases in interest rates, and the forecast higher growth in
the general economy should benefit the retail sector thereby leading to growth
in retail rental levels.
3. Portfolio valuation
The entire portfolio was valued during December 2000 by JHI Real Estate Limited
at a total open market value of R512 million with an estimated replacement cost
of R753 million.
The open market valuation including cash held, equates to 319 cents per unit
(1999: 318 cents per unit) compared to a closing market price of 250 cents per
unit at 31 December 2000 (1999: 250 cents per unit). Units were therefore
trading at a 22% discount. The market capitalisation of Cenprop at 31 December
2000 was R409 million.
Notwithstanding the market's perception of illiquidity, 34% of Cenprop's units
traded during the year compared with 27% in 1999 and 55% in 1998.
4. Funds
Cenprop's financial resources continue to be fully invested in line with its
policy of planned refurbishment and extension to its property portfolio.
5. Outlook
Net rental earnings for the year ending 31 December 2001 are expected to show
an improvement over those achieved in the current year.
Earnings per unit, however, are expected to be marginally above those of the
year ended 31 December 2000, mainly due to lower interest earnings and higher
service fees linked to increased unit prices.
6. Annual report
Cenprop's annual report will be posted to unitholders on or about 28 February
2001. Notice is hereby given of the declaration of Dividend No. 43 in respect
of the income distribution period 1 July 2000 to 31 December 2000. The dividend
amounts to 19,62 cents per unit and is payable to unitholders registered as
such in the books of the Fund at the close of business on 16 February 2001.
Dividend cheques will be posted on or about 28 February 2001.
DIVIDEND DECLARATION
Notice is hereby given of the declaration of Dividend No. 43 in respect of the
income distribution period 1 July 2000 to 31 December 2000. The dividend
amounts to 19,62 cents per unit and is payable to unitholders registered as
such in the books of the Fund at the close of business on 16 February 2001.
Dividend cheques will be posted on or about 28 February 2001.
On behalf of the Board
JHI Real Estate Limited
Secretaries
30 January 2001
Final Results and Dividend Declaration
The directors of Property Fund Managers Limited, the management company of
Capital, announce that the final audited results of the fund for the year ended
31 December 2000 are as follows:
CAPITAL PROPERTY FUND
("Capital")
2000 1999
R'000 R'000
TURNOVER (comprising gross rentals
and recoveries) 49 812 49 870
Net income derived from fixed property companies 43 657 43 393
Interest received 7 386 7 606
Service fee (1 823) (1 559)
Other expenditure (36) 5 527 (36) 6 011
Net income available for distribution 49 184 49 404
Retained income at beginning of year - -
Total income available for distribution 49 184 49 404
Dividend distribution 49 184 49 404
Retained income at end of year - -
Units in issue at 31 December 146 838 565 146 838 565
Earnings and dividends per unit (cents)
Six months ended 30 June 16,51 17,07
Six months ended 31 December 16,99 16,58
33,50 33,65
ABRIDGED BALANCE SHEET AT 31 DECEMBER
2000 1999
R'000 R'000
Assets
Investment in property 302 206 254 969
Current assets 35 434 84 520
337 640 339 489
Equity and liabilities
Capital and reserves 312 039 314 499
Current liabilities 25 601 24 990
337 640 339 489
COMMENT
1. Income
Capital's annual net income available for distribution was R49,2 million or
33,5 cents per unit, virtually unchanged from the R49,4 million (33,65 cents)
earned last year.
This distribution includes the interim distribution in August 2000 of 16,51
cents per unit (1999: 17,07 cents per unit) and the final dividend to be
distributed in February 2001 of 16,99 cents (1999: 16,58 cents).
2. Portfolio update
Management will continue the process of disposing of certain properties which
no longer meet the Fund's investment criteria, and will use such funds to
acquire more appropriate, better performing properties.
Erf 191 Bromhof was disposed of for R550 000, realising a net surplus of
approximately R190 000 which was transferred to capital reserves.
The PriceWaterhouseCoopers property across the road from the Menlyn Park
Shopping Centre, Pretoria, was completed in October 2000 for a total capital
outlay of R39 million at an attractive yield to the Fund.
An industrial development comprising five general purpose units of
Stand 77 of Capital Hill Commercial Estate, was completed in December 2000 at a
total capital cost of R10,8 million.
The claim against the developers, builders and professionals in respect of the
defective roof of Erf 1115 Ferndale was successfully settled out of court at
R1,438 million, just short of the R1,5 million total cost of repairs.
3. Portfolio valuation
During December 2000, approximately 50% of Capital's portfolio was valued by
JHI Real Estate Limited, with the balance having been valued during the course
of 1999.
The combined market valuation including cash held, equates to
253 cents per unit (1999: 268 cents per unit) compared to a closing market
price of 240 cents per unit at 31 December 2000 (1999:
240 cents per unit). Units were therefore trading at a 5% discount. The market
capitalisation of Capital at 31 December 2000 was R352 million.
27% of Capital's units traded during the year (1999: 8,1%)
4. Funds
At 31 December 2000 the fund's capital account reflected a balance of R4
million. Allowing for anticipated capital expenditure early 2001, the remaining
balance will be R3 million.
5. Outlook
While some improvement in net rental earnings during 2001 is expected, this
could largely be offset by lower interest income as funds are reinvested in new
property developments
6. Annual report
Capital's annual report will be posted to unitholders on or about 28 February
2001.
DIVIDEND DECLARATION
Notice is hereby given of the declaration of Dividend No. 35 in respect of the
income distribution period 1 July 2000 to 31 December 2000. The dividend
amounts to 16,99 cents per unit and is payable to unitholders registered as
such in the books of the Fund at the close of business on 16 February 2001.
Dividend cheques will be posted on or about 28 February 2001.
On behalf of the board
JHI Real Estate Limited
Secretaries
30 January 2001
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
Gold Fields Limited
(Registration number 1968/004880/06)
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