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PUTPROP LIMITED - Abridged Condensed Consolidated Audited Results for the year ended 30 June 2020

Release Date: 04/09/2020 17:27
Code(s): PPR     PDF:  
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Abridged Condensed Consolidated Audited Results for the year ended 30 June 2020

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")



Short-form announcement Abridged Condensed Consolidated audited Results 

for the year ended 30 June 2020



Performance Highlights



Gross property revenue drop restricted to 

2.9% year on year in Covid-19 operating environment



Annual escalation on contractual rental income maintained at 7.67% in difficult rental market

Market value per m2 of property portfolio of R8 200 per m2



Increase in Dividend distribution of 7.7% to 14 cents per share

32nd consecutive year of a dividend pay-out to shareholders



Weighted Average Group lease expiry (WALE) of 3.75 years

Future minimum contractual lease rentals greater than two years of R146 million





                                             Total            Total          change

                                              2020             2019               % 

Contracted rental and recoveries            73 890           76 091           (2.89)

Operating profit (Rm)                       37 350           66 800          (44.09)

Earnings per share (cents)                    6.57            76.26          (91.38)

Headline earnings per share (cents)          48.23            71.64          (32.68)

Net asset value per share (cents)            1 329            1 337           (0.59)

Dividend per share (cents)                      14               13            7.69



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 an industrial sector 

dominated, JSE listed property company.



The portfolio currently comprises 14 (2019: 14) strategically located properties, located primarily in 

the Gauteng geographic area. The total Gross Lettable Area ('GLA') of the invested properties is 68 553m2 

with a value of R562.1 million.



The board of directors ('Board') is pleased to announce the Abridged Condensed Consolidated audited 

results for the year ended 30 June 2020. The Group reflected a decrease in property revenue in the current 

review period to R 73.8 million (2019: R 76.1 million). Operating profit decreased to R 37.3 million 

(2019: R 66.8 million) respectively. Profit available for distribution to ordinary shareholders decreased 

from R 33.6 million to R 2.9 million. Headline Earnings per Share decreased to 48.23 cents. (2019: 71.64 

cents).



Declaration of final dividend no 62



The Board is pleased to announce the declaration of a dividend of 5.75 cents per ordinary share in 

respect of the year ended 30 June 2020 (2019: 7 cents), thus bringing the total dividend payable for the 

year to 14 cents (2019: 13 cents).



Additional information:



This is a dividend as defined in the Income Tax Act, 1962, and is payable from income reserves. The 

dividend withholding tax ("DWT") rate is 20%. The net amount payable to shareholders who are not exempt 

from DWT is 4.60000 cents per share, while the gross amount is 5.75 cents per share to those shareholders 

who are exempt from DWT.



There are 43 897 279 (2019: 43 897 279) ordinary shares in issue; the total dividend amount payable is R2 

324 093 (2019: R3 127 059). Putprop's tax reference number is 9100097717, and its company registration 

number is 1988/001085/06



The salient dates are as follows:



Declaration date                           Friday, 4 September 2020

Last date to trade to participate          Tuesday, 27 October 2020

Trading commences ex dividend            Wednesday, 28 October 2020

Record date                                 Friday, 30 October 2020

Date of payment                              Monday,2 November 2020



Share certificates may not be dematerialised or rematerialised between Wednesday, 28 October 2020 and 

Friday, 30 October 2020, both days inclusive.



Operations



Rental Operations: The Group's rental operations were marginally up in the Commercial and Retail trading 

segments. The Industrial segment was down due to vacancies being higher than previously forecast.



Investment in associates: Associate losses from our investment in these companies was substantial at R7.4 

million (2019: R18.2 million profit). This large decrease arose mainly from the downward valuation of the 

Summit Place Precinct and the Belle Isle portfolio, as well as lower operating results in these 

companies.



Short-form announcement



The content of this short-form announcement is the responsibility of the directors. The audited condensed 

consolidated annual financial statements for the period ended 30 June 2020 have been audited by the 

Group's auditors, Mazars who expressed an unmodified audit opinion thereon (the Audit Report). The Audit 

Report includes the communication of key audit matters which are disclosed on pages 88 to 90 of the 

consolidated annual financial statements available on the Company's website. The valuation of investment 

property and the impact of Covid-19 on Putprop's consolidated financial statements was identified as key 

audit matters and a full dislosure is available at the link to the website as mentioned below. 

Shareholders are advised that this short form announcement represents a summary of the information 

contained in the abridged financial statements which is available at: 

https://senspdf.jse.co.za/documents/2020/jse/isse/ppr/ye20.pdf and also published on the company's 

website www.putprop.co.za. Any investment decision by investors and/or shareholders should be based on a 

consideration of the full announcement which investors and shareholders are encouraged to review.



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 natasha@acorim.co.za.



Shareholders are advised that the integrated annual report for the year ended 30 June 2020 ("integrated 

annual report") was distributed to shareholders today, 4 September 2020 and is also available on the 

Company's website, www.putprop.co.za. 



Notice is hereby given that the annual general meeting of shareholders of Putprop ("Annual General 

Meeting") will be held at 11:00 on Wednesday, 4 November 2020 at Larimar Limited, Gaetano Auditorium, 32 

Milky Way Avenue, Linbro Business Park, Linbro Park, Sandton to transact the business stated in the 

notice of the annual general meeting, which is contained in the integrated annual report.



Registered and Postal Address: 

Putprop House 91 Protea Road, Chislehurston, Sandton, 2196 



Company Secretary: 

Acorim Proprietary Limited, 13th Floor, Illovo Point, 

68 Melville Road, Illovo,Sandton, 2196



Sponsor: 

Merchantec Capital



Transfer Secretaries: 

Computershare Investor Services Proprietary Limited, 

Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196 



Directors: 

Bruno Carleo (Chief Executive Officer), James Smith (Chief Financial Officer), Daniele Torricelli*^ 

(Chairman), Hayden Hartley*^, Rene Styber*^, 



Gerrit van Heerden*^, Anna Carleo-Novello



* Independent      ^ Non-executive


Date: 04-09-2020 05:27:00
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