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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 1999 ARE AS FOLLOWS:
CITY CENTRE PROPERTY FUND
("CENPROP")
UNAUDITED UNAUDITED
(R000) 1999 1998
TURNOVER 33 173 30 315
NET INCOME DERIVED FROM
FIXED PROPERTY COMPANIES 27 177 23 686
INTEREST RECEIVED 2 395 1 759
SERVICE FEE (822) (758)
OTHER EXPENDITURE (1 038) 535 (910) 91
NET INCOME AVAILABLE FOR DISTRIBUTION 27 712 23 777
RETAINED INCOME AT BEGINNING OF YEAR 10 10
TOTAL INCOME AVAILABLE FOR DISTRIBUTION 27 722 23 787
DIVIDEND DISTRIBUTION 27 712 23 777
RETAINED INCOME AS AT 30 JUNE 1999 10 10
UNITS IN ISSUE
AT 30 JUNE 163 490 707 163 490 707
EARNINGS AND DIVIDENDS PER UNIT (CENTS) 16,95 14,54
ABRIDGED BALANCE SHEET AT 30 JUNE (R000) 1999 1998
CAPITAL EMPLOYED 254 654 254 654
REPRESENTED BY:
INVESTMENT IN PROPERTY 248 781 248 233
CURRENT ASSETS 37 062 30 443
CURRENT LIABILITIES 31 189 24 022
NET CURRENT ASSETS 5 873 6 421
254 654 254 654
COMMENT
1. INCOME
NET DISTRIBUTABLE INCOME FOR THE PERIOD UNDER REVIEW TOTALLED R27,7 MILLION.
CENPROP'S DIVIDEND OF 16,95 CENTS PER UNIT FOR THE SIX MONTHS TO 30 JUNE 1999
REPRESENTS AN INCREASE OF 16,5% WHEN COMPARED WITH THE 14,54 CENTS PER UNIT
ACHIEVED TO 30 JUNE 1998. ONCE AGAIN, THE FAVOURABLE RESULTS REFLECT A
CONTINUING TREND OF IMPROVED OCCUPANCIES AND LETTINGS WITHIN CENPROP'S
PORTFOLIO.
2. INVESTMENTS/DISPOSALS
CERTAIN PROPERTIES WHICH NO LONGER MET THE PROFILE AND INVESTMENT CRITERIA OF
THE FUND HAVE BEEN IDENTIFIED AND DISPOSED OF AS FOLLOWS:
SEADOONE MALL, SOUTHWAY MALL AND ERF 85 HYDE PARK HAVE BEEN SOLD FOR A TOTAL
CONSIDERATION OF R56,6 MILLION. IN ADDITION, AN OFFER HAS BEEN ACCEPTED ON THE
PROPERTY KNOWN AS 2 LONG STREET, CAPE TOWN, FOR A PURCHASE CONSIDERATION OF
R63,5 MILLION. OFFERS HAVE ALSO BEEN ACCEPTED ON THE NBS BUILDING AND INNES
CHAMBERS AT R21,10 MILLION AND R32,25 MILLION, RESPECTIVELY, THESE TWO
PROPERTIES BEING THE LAST OF THE PROPERTY INVESTMENTS LOCATED IN THE CBD. ALL
OF THESE OFFERS ARE HOWEVER SUBJECT TO THE NECESSARY FINANCE BEING OBTAINED.
THE PROPOSED DISPOSAL OF KEW GARDENS WHICH IS TO BE EFFECTIVE 1 JANUARY 2000 IS
ALSO BEING FINALISED AND IS EXPECTED TO RAISE R2,97 MILLION.
IN TERMS OF THE STRATEGY PREVIOUSLY REPORTED, CENPROP HAS SUBMITTED AN OFFER TO
THE COUNCIL TO ACQUIRE A PORTION OF CRADOCK AVENUE FOR R1,6 MILLION. FOLLOWING
REGISTRATION OF TRANSFER, CENPROP WILL COMMENCE WITH THE CONSTRUCTION OF THE
EXTRA VEHICULAR RAMP LINKING THE GROUND AND UPPER PARKING LEVEL AT THE MALL OF
ROSEBANK AND CONSTRUCT AN AFRICAN CURIO MARKET WHICH WILL BE MARKETED AS A
TOURIST DESTINATION. PLANS TO RENOVATE AND IMPROVE THE EXISTING PUBLIC AREAS OF
THE MALL HAVE REACHED AN ADVANCED STAGE AND IT IS EXPECTED THAT THE TOTAL COST
OF THE RENOVATION, CONSTRUCTION OF THE RAMP, CURIO MARKET AND CREATION OF
ADDITIONAL PARKING WILL AMOUNT TO APPROXIMATELY R30 MILLION. THE RENOVATION OF
THE MALL WHICH IS UNDERTAKEN IN APPROXIMATELY SEVEN YEAR INTERVALS, IS VIEWED
AS ESSENTIAL IN ENSURING THAT THE ROSEBANK PRECINCT, WHICH IS A GROWING ONE,
REMAINS AMONGST THE PREMIUM SHOPPING NODES IN THE NORTHERN SUBURBS OF
JOHANNESBURG.
3. FUNDS
CENPROP'S FINANCIAL RESOURCES ARE FULLY INVESTED. IN THE EVENT THAT THE
TRANSACTIONS REFERRED TO IN POINT 2 ABOVE ARE COMPLETED, CENPROP WILL HAVE
APPROXIMATELY R150 MILLION TO INVEST. THIS PUTS CENPROP IN A UNIQUE POSITION TO
DEVELOP INTO A LARGER VEHICLE FOR PROPERTY INVESTMENT BOTH LOCALLY AND
INTERNATIONALLY, WITH AN EMPHASIS ON OFFICE AND RETAIL ACTIVITIES.
4. INVESTMENT POLICY
THE QUALITY OF CENPROP'S PROPERTY PORTFOLIO IS CONTINUOUSLY BEING UPGRADED
THROUGH EXPANSION AND REFURBISHMENT OF EXISTING INVESTMENTS AND INVESTIGATION
OF NEW OPPORTUNITIES. CENPROP IS CURRENTLY INVESTIGATING THE POSSIBILITY OF
ACQUIRING CERTAIN PRIME INVESTMENT PROPERTIES TO ENHANCE THE QUALITY OF ITS
EXISTING PORTFOLIO.
5. YEAR 2000 COMPLIANCE
INSOFAR AS ITS OWN COMPUTER PROGRAMMES ARE CONCERNED, PROPERTY FUND MANAGERS
LIMITED IS YEAR 2000 COMPLIANT. IN ADDITION, PROPERTY FUND MANAGERS LIMITED,
HAS IMPLEMENTED A COMPREHENSIVE YEAR 2000 COMPLIANCE PROGRAMME COVERING ALL
COMPUTERISED SYSTEMS AND APPLICATIONS, INCLUDING THOSE OF ITS PROPERTY
ADMINISTRATOR, JHI REAL ESTATE LIMITED. PROPERTY FUND MANAGERS LIMITED HAS BEEN
ADVISED BY ITS MANAGING AGENTS THAT TO ITS KNOWLEDGE, ALL SYSTEMS ARE YEAR 2000
COMPLIANT, BUT THAT CONCERN EXISTS AS TO THE COMPLIANCE OF OUTSIDE SERVICE
PROVIDERS, SUCH AS MUNICIPALITIES AND LOCAL AUTHORITIES. WITH REGARD TO
ENSURING YEAR 2000 COMPLIANCE OF EXISTING SYSTEMS, NO MATERIAL COSTS ARE
EXPECTED BY CENPROP IN THIS RESPECT OF THE PERIOD TO DECEMBER 1999.
6. OUTLOOK
THE PROSPECTS OF A FURTHER REDUCTION OF INTEREST RATES AND IMPROVEMENT IN
CONSUMER SPENDING WILL CONTRIBUTE TO CENPROP'S CONTINUED GROWTH IN EARNINGS,
AND SHOULD RESULT IN AN OVERALL INCREASE IN EARNINGS FOR THE YEAR ENDING
DECEMBER 1999 OF APPROXIMATELY 14%.
DIVIDEND DECLARATION
NOTICE IS HEREBY GIVEN OF THE DECLARATION OF DIVIDEND NO. 40 IN RESPECT OF THE
INCOME DISTRIBUTION PERIOD 1 JANUARY 1999 TO 30 JUNE 1999. THE DIVIDEND AMOUNTS
TO 16.95 CENTS PER UNIT AND IS PAYABLE TO UNITHOLDERS REGISTERED AS SUCH IN THE
BOOKS OF THE FUND AT THE CLOSE OF BUSINESS ON 20 AUGUST 1999. DIVIDEND CHEQUES
WILL BE POSTED ON OR ABOUT 27 AUGUST 1999.
ON BEHALF OF THE BOARD
JHI PROPERTY SERVICES LIMITED
SECRETARIES
5 AUGUST 1999
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 1999 ARE AS FOLLOWS:
CAPITAL PROPERTY FUND
("CAPITAL")
UNAUDITED UNAUDITED
(R000) 1999 1998
TURNOVER 25 406 24 444
NET INCOME DERIVED FROM
FIXED PROPERTY COMPANIES 20 981 19 633
INTEREST RECEIVED 5 539 4 719
SERVICE FEE (722) (873)
OTHER EXPENDITURE (721) 4 096 (852) 2 994
NET INCOME AVAILABLE FOR DISTRIBUTION 25 077 22 627
RETAINED INCOME AT BEGINNING OF YEAR 3 3
TOTAL INCOME AVAILABLE FOR DISTRIBUTION 25 080 22 630
DIVIDEND DISTRIBUTION 25 077 22 627
RETAINED INCOME AS AT 30 JUNE 1999 3 3
UNITS IN ISSUE
AT 30 JUNE 146 838 565 146 838 565
EARNINGS AND DIVIDENDS PER UNIT (CENTS) 17,07 15,40
ABRIDGED BALANCE SHEET AT 30 JUNE (R000) 1999 1998
CAPITAL EMPLOYED 305 705 305 066
REPRESENTED BY:
INVESTMENT IN PROPERTY 259 234 277 598
CURRENT ASSETS 72 151 50 512
CURRENT LIABILITIES 25 680 23 044
NET CURRENT ASSETS 46 471 27 468
305 705 305 066
COMMENT
1. INCOME
NET DISTRIBUTABLE INCOME FOR THE PERIOD UNDER REVIEW TOTALLED R25,1 MILLION,
WHICH IS IN LINE WITH BUDGETED EARNINGS AND REPRESENTS AN INCREASE OF 11% IN
COMPARISON WITH THE FIRST HALF OF THE PREVIOUS YEAR.
AGAINST THE BACKGROUND OF THE VERY DIFFICULT CONDITIONS BEING EXPERIENCED IN
THE MANUFACTURING SECTOR, RELATIVE STABILITY OF ITS INDUSTRIAL AND COMMERCIAL
PROPERTY INVESTMENTS AND THE LONG -TERM NATURE OF CAPITAL'S LEASE PROFILE HAVE
SECURED A SATISFACTORY GROWTH IN THE FUND'S EARNINGS.
2. INVESTMENTS/DISPOSALS
THE CAPITAL PROPERTY FUND IS CONTINUING ITS STRATEGY OF DISPOSING OF SELECTED
PROPERTIES WHICH NO LONGER MEET THE FUND'S INVESTMENT CRITERIA.
CAPITAL DISPOSED OF FERRO STREET, RUSTENBURG EXT. 9 AND 19 - 27 GOODWOOD ROAD,
MAHOGANY RIDGE, PINETOWN FOR A TOTAL CONSIDERATION OF R16,4 MILLION. WHEN
COMPARED WITH THE CURRENT BOOK VALUE AND AFTER MAKING ALLOWANCES FOR AGENTS
COMMISSION, THESE SALES REALISED A PROFIT OF APPROXIMATELY R4,1 MILLION WHICH
WAS TRANSFERRED TO CAPITAL RESERVES. IN ADDITION, ERF 637 ALRODE, HAS BEEN SOLD
FOR R1,9 MILLION AND THE TRANSFER OF THE PROPERTY TO THE PURCHASER IS EXPECTED
TO TAKE PLACE IN AUGUST 1999.
CAPITAL IS NEGOTIATING THE SALE OF ADDITIONAL PROPERTIES, WHICH IF CONCLUDED,
WOULD REALISE APPROXIMATELY R12 MILLION FOR FURTHER INVESTMENT.
AT CAPITAL HILL INDUSTRIAL ESTATE LOCATED IN MIDRAND, IN WHICH THE FUND HAS A
35% STAKE, THE FIRST LAND SALE HAS BEEN FINALISED AND OPTIONS TO PURCHASE HAVE
BEEN GRANTED OVER OTHER STANDS. WHILE THE OVERALL OBJECTIVE OF CAPITAL IS TO
DEVELOP THE INDIVIDUAL STANDS, FURTHER LAND SALES ARE UNDER DISCUSSION. PROFITS
REALISED FROM THESE SALES WILL BE TRANSFERRED TO CAPITAL'S CAPITAL RESERVES, IN
ACCORDANCE WITH EXISTING POLICY.
CAPITAL IS CURRENTLY SEEKING TO ACQUIRE PRIME INDUSTRIAL AND COMMERCIAL
PROPERTIES TO IMPROVE THE OVERALL QUALITY OF ITS PROPERTY PORTFOLIO.
3. FUNDS
AFTER MAINTAINING A FLOAT OF R10 MILLION TO PROVIDE FOR EXTENSIONS AND
REFURBISHMENT TO CAPITAL'S EXISTING PORTFOLIO IN TERMS OF THE MANAGEMENT
COMPANY'S POLICY, AN AMOUNT OF R36 MILLION IS AVAILABLE FOR FURTHER INVESTMENT.
4. YEAR 2000 COMPLIANCE
INSOFAR AS ITS OWN COMPUTER PROGRAMMES ARE CONCERNED, PROPERTY FUND MANAGERS
LIMITED IS YEAR 2000 COMPLIANT. IN ADDITION, PROPERTY FUND MANAGERS LIMITED,
HAS IMPLEMENTED A COMPREHENSIVE YEAR 2000 COMPLIANCE PROGRAMME COVERING ALL
COMPUTERISED SYSTEMS AND APPLICATIONS, INCLUDING THOSE OF ITS PROPERTY
ADMINISTRATOR, JHI REAL ESTATE LIMITED. PROPERTY FUND MANAGERS LIMITED HAS BEEN
ADVISED BY ITS MANAGING AGENTS THAT TO ITS KNOWLEDGE, ALL SYSTEMS ARE YEAR 2000
COMPLIANT, BUT THAT CONCERN EXISTS AS TO THE COMPLIANCE OF OUTSIDE SERVICE
PROVIDERS, SUCH AS MUNICIPALITIES AND LOCAL AUTHORITIES. WITH REGARD TO
ENSURING YEAR 2000 COMPLIANCE OF EXISTING SYSTEMS, NO MATERIAL COSTS ARE
EXPECTED BY CAPITAL IN THIS RESPECT OF THE PERIOD TO DECEMBER 1999.
5. OUTLOOK
CAPITAL'S EARNINGS FOR THE YEAR ENDING DECEMBER 1999 ARE EXPECTED TO BE SIMILAR
TO THOSE ACHIEVED FOR THE PERIOD ENDING JUNE 1999, WHICH WOULD REPRESENT AN
OVERALL INCREASE IN EARNINGS FOR THE YEAR OF APPROXIMATELY 11%.
DIVIDEND DECLARATION
NOTICE IS HEREBY GIVEN OF THE DECLARATION OF DIVIDEND NO. 32 IN RESPECT OF THE
INCOME DISTRIBUTION PERIOD 1 JANUARY 1999 TO 30 JUNE 1999. THE DIVIDEND
AMOUNTS TO 17,07 CENTS PER UNIT AND IS PAYABLE TO UNITHOLDERS REGISTERED AS
SUCH IN THE BOOKS OF THE FUND AT THE CLOSE OF BUSINESS ON 20 AUGUST 1999.
DIVIDEND CHEQUES WILL BE POSTED ON OR ABOUT 27 AUGUST 1999.
ON BEHALF OF THE BOARD
JHI REAL ESTATE LIMITED
SECRETARIES
5 AUGUST 1999
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, 2001
PO BOX 1053, JOHANNESBURG, 2000
PFM
PROPERTY FUND MANAGERS LTD
CO. REG. NO. 80/09531/06
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