| Wed 4 Apr 2001, 0:00 | | Premium Properties Limited - Project Earnings 28 F |
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and its subsidiaries
(INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA)
Registration Number 1994/003601/06
Exceptional 48.6% increase in distributions for Premium Properties
Premium Properties is proud to announce that it has exceeded its projected
earnings for the year ended 28 February 2001 with distributions up by 48.6%.
For unit holders the final distribution of 13,5 cents per linked unit which
together with the interim distribution of 12,5 cents translates to a total
distribution of 26 cents per linked unit for the year ended
28 February 2001. Once again the results reinforce the view that property, and
Premium Properties in particular, continues to be a solid vehicle for capital
growth and acceptable return on investment.
CONSOLIDATED INCOME STATEMENT
R'000 Key
% 2001 2000
Changes
Turnover (rental income) 7,1 80,497 75,151
Net rental from properties 3,6 54,576 52,150
Interest received 1,300 778
Capital profit: disposal of
properties 559 27
56,435 53,555
Interest paid (17,7) 29,179 35,450
Depreciation 377 343
Profit before debenture interest 51,9 26,879 17,762
Debenture interest 49,3 25,773 17,265
Profit before taxation 1,106 497
Taxation 377 261
Profit after taxation 729 236
Dividends 129 169
Transfer to non-distributable
reserve 559 27
Retained profit for the year 41 40
Earnings per linked unit (cents) 26,59 17,57
Headline earnings per linked
unit (cents) 26,03 17,54
Distribution per linked
unit (cents)
Dividends 0,13 0,17
Interest 25,87 17,33
Total 48,6 26,00 17,50
NOTES:
1. The same accounting policies and methods of computation were followed as in
the financial statements of 29 February 2000.
2. Capital expenditure during the year amounted to R27,1-million as follows:
R-million
(a) Schuchurh Properties (Pty) Ltd 18,2
(b) Squareres Properties (Pty) Ltd 5,7
(c) Prinsman Properties Share Block
(Pty) Ltd 1,2
(d) Other 2,0
27,1
Adequate arrangements have been made to finance the above capital expenditure.
3. Properties were sold for R3,8-million.The capital profit of R559 000 from
these transactions has been transferred to a non-distributable reserve.
4. Interest charges in an amount of R362 464 have been capitalised to
properties under development.
5. The Group has a capital commitment of approximately R200 000 in respect of
renovations to Schuchurh. This will be financed by loans and the proceeds of
the sale of properties.
6. Guarantees amounting to approximately R1,5-million have been issued to the
City Council of Pretoria in respect of electricity deposits for various
subsidiaries.
7. The directors' valuation of the investment in fixed property and unlisted
investments is at cost.
ABRIDGED CONSOLIDATED BALANCE SHEET
R'000 2001 2000
Assets
Investment in fixed properties 413,918 390,585
Investments - unlisted 4,447 4,292
Current assets 3,352 8,128
Total assets 421,717 403,005
EQUITY AND LIABILITIES
Share capital 996 996
Non-distributable reserve 5,336 4,777
Retained profit 267 226
Ordinary shareholders' interest 6,599 5,999
Debentures 167,510 167,510
Linked unit holders' interest 174,109 173,509
Interest bearing borrowings 207,945 200,985
Current liabilities - Interest bearing 11,631 3,747
- Non interest bearing 28,032 24,764
Total equity and liabilities 421,717 403,005
Linked units in issue 99,624,992 99,624,992
Net asset value per linked unit (cents) 175 174
STATEMENT OF CHANGES IN EQUITY
R'000 Share Non- Distri- Total
capital distribu- butable
table reserve
reserve
Balance at 1/3/99 996 4,750 186 5,932
Profit attributable
to ordinary
shareholders 236 236
Dividends (169) (169)
Transfer to
non-distributable
reserve - 27 (27) -
Balance at 1/3/2000 996 4,777 226 5,999
Profit attributable
to ordinary
shareholders 729 729
Dividends (129) (129)
Transfer to
non-distributable
reserve - 559 (559) -
Balance at end
of year 996 5,336 267 6,599
COMMENTS
1. The final distribution of 13,5 cents per linked unit (2000: 11,85 cents)
together with the interim distribution of 12,5 cents is 48,6% higher than the
previous year's distribution and is slightly more than projected. This increase
is mainly attributable to the benefits of positive gearing which have been
realised in the last two years.
2. During the year under review interest rates on bonds amounting to R94,4
million were fixed at approximately 14,5%. The directors expect that the
distributable income for the ensuing year will be the same.
3. Vacancies represent approximately 10,4% of total potential rental income.
4. Your company is investigating the acquisition of properties yielding a
suitable return with sustainable income and growth.
Directors: A Wapnick (Chairman), M J Holmes, R J Inggs, J Pollack, J P
Wapnick, S Wapnick
NOTICE TO LINKED UNIT HOLDERS
The directors report the unaudited results of the group for the year ended 28
February 2001 set out below, together with comparisons with the results for the
corresponding year ended 29 February 2000.
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
R'000 2001 2000
CASH FLOW FROM OPERATING ACTIVITIES
Net rental income from properties 54,199 52,407
Adjustment for :
- Depreciation 377 343
- Working capital changes 2,772 (1,936)
Cash generated from operations 57,348 50,814
Investment income 1,300 778
Finance costs (29,179) (35,450)
Taxation paid (225) 16
Distribution to linked unit holders paid (24,259) (11,606)
Net cash inflow (outflow) from
operating activities 4,985 4,552
CASH FLOW FROM INVESTING ACTIVITIES
Investing activities (27,149) (2,689)
Proceeds from sale of fixed assets 3,834 91
Net cash outflow used in investing activities (23,315) (2,598)
Cash flow from financing activities 13,470 2,584
NET INCREASE IN CASH AND CASH EQUIVALENTS (4,860) 4,538
Cash and cash equivalents at beginning
of year 3,653 (885)
Cash and cash equivalents at end of year (1,207) 3,653
DECLARATION OF DIVIDEND AND INTEREST PAYMENT NO. 14
Notice is hereby given that dividend No. 14 of 0,07 cents (0,06 cents : 2000)
per ordinary share and interest of 13,43 cents (11,79 cents : 2000) per
debenture totalling 13,5 cents (11,85 cents : 2000) have been declared payable
to linked unitholders registered in the books of the company at the close of
business on Friday, 20th April 2001. The register of linked unit holders will
be closed from 21st April 2001 to 11th May 2001, both days inclusive. Payment
will be effected on or about 17th May 2001.
By order of the Board
City Property Administration (Proprietary) Limited
Date: 30th March 2001.
A Wapnick J P Wapnick
Registered Office: Downies Building, 373 Proes Street, Pretoria, 0002.
P.O. Box 15, Pretoria, 0001. Tel (012) 326-8811.
Transfer Secretaries: Investments Registrars (Pty) Ltd,
Pollack House, 440 Louis Botha Avenue, Highlands North, Johannesburg. P.O. Box
722, Highlands North, 2037. Tel (011) 640 5081.
