Putprop final results June 2018

Property rental revenue for the year increased to R62.4 million (2017: R57.3 million). Net profit from property operations lowered to R53 million (2017: R53.8 million). Profit and total comprehensive income for the year dropped to R7 million (2017: R39.3 million). Furthermore, headline earnings per share increased to 59.53 cents per share (2017: 55.91 cents per share).

Declaration of final dividend number 58
The board is pleased to announce the declaration of a dividend of 7 cents per ordinary share in respect of the year ended 30 June 2018 (2017: 7 cents), thus bringing the total dividend payable for the year to 13 cents (2017: 13 cents).

Company prospects
Available cash resources together with controlled gearing may still be utilised to acquire suitable rental generating properties if exceptional opportunities present themselves. One of the GroupÆs main strategies that of further diversification of its rental stream base in order to reduce risk from a limited number of tenants remains intact. In this review period the Group reduced its dependence on Larimar Ltd. from 48% to 38%, a pleasing result.

Looking ahead, we believe property fundamentals will be under pressure for the foreseeable future. Growth, if any, in gross domestic product is forecast by most economists to be in the region of 1.5% for the 2019 year. Trading conditions in the year ahead are expected to remain challenging with growth in the property sector around 5% to 6%.

Going forward it is the GroupÆs intention to continue to uphold its policy of strong tenant retention and focus on cost controls, whilst maintaining the value of its existing portfolio through aggressive maintenance and renovation policies. We will strive to establish and build sustainable partnerships and joint ventures with organisations of a similar philosophy.

The Group continues to be in discussions with several parties to investigate the possibility of developing certain of our geographically well-positioned rural properties into large retail outlets or residential areas, with a view to unlocking greater value for shareholders. Substantial progress has been made in this endeavour. Rezoning should be finalised within 6 months. A decision as to the feasibility of progressing with these projects is expected in the 2019 year. Suitable partners have also been identified and any project approved by the Board will be on a joint operations basis.

2018-09-06 17:04:30