| Thu 14 Jun 2001, 0:00 | | Primegro - Interim Distribution Of 43 Cents Per Li |
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PRIMEGRO PROPERTIES LIMITED
AND ITS SUBSIDIARIES
(Incorporated in the Republic of South Africa)
(Registration number 1998/018436/06)
Executive Directors: M Ettin, D Greenberg, L Levinsohn
Non-executive Directors: J F Marais (Chairman), L Butler, D Claassen, P
Fechter, E Loubser, H Mocke, J Molobela
HIGHLIGHTS
* Interim distribution of 43 cents per linked unit declared
* Total revenue exceeds R92 million for six months
* Portfolio value exceeds R1,1 billion
* Agreements concluded for further acquisitions of R47 million
NOTICE TO LINKED UNIT HOLDERS
The directors report the unaudited results of the group for the half year
ended 30 April 2001
Abridged consolidated income statements
Unaudited Unaudited Audited
for the for the for the
half-year half-year year
ended ended ended
30 April 30 April 31 October
2001 2000* 2000
R'000 R'000 R'000
Revenue 92 875 52 460 113 125
- Rental income 90 871 51 136 111 651
- Investment income 2 004 1 324 1 474
Operating costs 27 021 15 899 34 732
Operating profit 65 854 36 561 78 393
Interest paid 37 627 22 720 46 674
Amortisation of goodwill 175 155 329
Net profit before debenture interest 28 052 13 686 31 390
Debenture interest 27 639 13 457 30 988
Net profit before taxation 413 229 402
Taxation 183 157 336
Net profit after taxation 230 72 66
Dividends 55 27 62
Retained income for period 175 45 4
Number of units issued and
ranking for dividend 64 406 292 38 524 489 38 524 489
Earnings per linked unit (cents) 43,27 35,12 80,61
Distribution per linked unit (cents)
Dividends 0,09 0,07 0,16
Interest 42,91 34,93 80,34
43,00 35,00 80,50
*Note: The results for the period to 30 April 2000 were for a trading period
of 5,3 months
Abridged consolidated cash flow statements
Unaudited Unaudited Audited
for the for the for the
half-year half-year year
ended ended ended
30 April 30 April 31 October
2001 2000 2000
R'000 R'000 R'000
CASH FLOW FROM
OPERATING ACTIVITIES
Cash receipts from tenants 92 085 36 033 94 408
Cash paid to suppliers and employees 27 079 4 117 16 948
Cash generated from operations 65 006 31 916 77 460
Interest received 2 881 1 324 1 474
Interest paid (37 627) (22 720) (46 674)
Taxation paid (15) - (4)
Distribution to unit holders (17 467) - (13 483)
Net cash inflow from
operating activities 12 778 10 520 18 773
CASH FLOW FROM
INVESTING ACTIVITIES
Acquisition of property, plant and
equipment (449 519) (645 114) (646 384)
Net cash outflow from
investing activities (449 519) (645 114) (646 384)
CASH FLOW FROM
FINANCING ACTIVITIES
Proceeds from issue of linked units 131 865 161 621 161 622
Proceeds from issue of
class "A" debentures 95 897 162 623 162 623
Proceeds from interest free loan 24 000 - -
Mortgage bonds raised 203 352 330 780 306 605
Redemption of class "A" debentures (16 262) - -
Net cash inflow from financing
activities 438 852 655 024 630 850
Net increase in cash and
cash equivalents 2 111 20 430 3 239
Cash and cash equivalents
at beginning of period 3 239 - -
Cash and cash equivalents
at end of period 5 350 20 430 3 239
Abridged consolidated balance sheets
Unaudited Unaudited Audited
at at at
30 April 30 April 31 October
2001 2000 2000
R'000 R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 1 118 545 668 102 669 201
Goodwill 6 495 6 845 6 671
Deferred taxation 115 - 115
Current assets 19 795 36 533 21 483
- Trade and other receivables 14 445 16 103 18 244
- Cash and deposits 5 350 20 430 3 239
Total assets 1 144 950 711 480 697 470
EQUITY AND LIABILITIES
Share capital and reserves
Share capital and premium 3 100 385 385
Retained income 179 45 4
Ordinary shareholders' interest 3 279 430 389
Class "B" debentures 321 387 192 237 192 237
Linked unit holders' interest 324 666 192 667 192 626
Non-current liabilities
Interest bearing 509 898 330 780 306 546
Non-interest bearing 237 821 146 360 146 361
Current liabilities 72 565 41 673 51 937
- Trade and other payables 18 919 11 927 18 108
- Class "A" debentures -
current portion 25 852 16 262 16 262
- Linked unit holders for interest
and dividends 27 794 13 484 17 567
Total equity and liabilities 1 144 950 711 480 697 470
Linked units in issue 64 406 292 38 524 489 38 524 489
Net asset value per linked unit (cents) 504 500 500
Statement of changes in equity
share share Retained
capital premium income
R'000 R'000 R'000
Balance at 1 November 1999 62 - -
Issue of shares 323 - -
Net profit for period - - 72
Dividends declared - - (27)
Balance at 30 April 2000 385 - 45
Issue of shares - - -
Net profit for period - - (6)
Dividends declared - - (35)
Balance at 31 October 2000 385 - 4
Issue of shares 259 2 456 -
Net profit for period - - 230
Dividends declared - - (55)
Balance at 30 April 2001 644 2 456 179
DECLARATION OF DIVIDEND AND INTEREST PAYMENT NUMBER 3
Notice is hereby given that dividend Number 3 of 0,09 cents per ordinary
share and interest of 42,91 cents per class "B" debenture, totalling 43,00
cents per linked unit have been declared payable to linked unit holders
registered in the books of the company at close of business on 29 June 2001.
The transfer register and register of members will be closed from 30 June
2001 to 6 July 2001, both days inclusive. Where applicable, the amounts will
be electronically transferred to linked unit holders' bank or building
society accounts on 13 July 2001. In the absence of suitable mandates,
dividend cheques, dated 13 July 2001, will be posted to linked unit holders
at the risk of the recipient, on that day.
By order of the board
Primegro Property Administrators (Pty) Limited
Secretary
Johannesburg
14 June 2001
COMMENTS
During the period under review, the company acquired nine additional
properties at a cost of R435,5 million. These were funded by the issue of
linked units at R5,00 per unit to the value of R111,9 million, "A"
debentures to the value of R95,9 million, a non-interest bearing loan of R24
million and mortgage bond finance amounting to R203,7 million.
The new acquisitions increased the portfolio size to R1,1 billion and the
market capitalisation to R403 million at R6,25 per unit. Since listing,
Primegro linked units have shown a capital appreciation of 25% and
distributed 123,5 cents per unit, equal to a total return of approximately
30% per annum.
The company has further concluded agreements for the purchase of four
additional office properties in Bryanston, Rivonia, Sunninghill and Fourways
for a total consideration of R46,9 million.
Income from these properties will be accounted for from 1 July 2001. The
acquisitions are not expected to have a material effect on earnings for the
year to 31 October 2001 nor the asset value per linked unit. The
acquisitions will, however, contribute to the objective of increasing the
size and improving the quality and sectoral spread of the portfolio.
At 30 April 2001, capital expenditure authorised but not yet spent amounted
to approximately R50 million, including the four properties to be acquired
as mentioned above. The properties will be financed 50% by way of mortgage
bonds raised, 40% by the issue of linked units and 10% by way of equal
annual payments over the next four years. The balance of the authorised
capital expenditure will be financed from available facilities. Apart from
the above, there were no other major capital commitments. There were no
material contingent liabilities as at 30 April 2001.
Based on current market conditions, it is expected that profits and
distributions will show an increase in the second half compared to the half
year ended 30 April 2001.
Registered office:
18 Rivonia Road, Illovo, Sandton, 2196
Private Bag X02, Northlands, 2116. Tel (011) 778-4930
Transfer secretaries:
Investment Registrars (Pty) Limited
Pollack House, 440 Louis Botha Avenue, Highlands North, 2192
PO Box 722, Highlands North, Johannesburg, 2037. Tel (011) 640-5081
