| Thu 25 Oct 2001, 0:00 | | Premium Properties Limited And Its Subsidiaries - |
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unitholders
Premium Properties Limited and its subsidiaries
(Incorporated in the Republic of South Africa) Registration number
1994/003601/06 Share code: PMM ISIN code: ZAE000009254
Directors: A Wapnick (Chairman), M J Holmes, R J Inggs, J Pollack, M Z
Pollack, J P Wapnick, S Wapnick
NOTICE TO LINKED UNIT HOLDERS
The directors report the unaudited results of the Group for the six months
ended 31 August 2001 set out below, together with comparisons with the
results for the corresponding period in 2000 and the year ended 28 February
2001.
CONSOLIDATED INCOME STATEMENT
Six Six
months months Year
Key % to to to
R'000 Changes 31/8/01 31/8/00 28/2/01
Turnover (rental income) 11,4 43 605 39 151 80 497
Net rental from
properties 7,6 29 028 26 878 54 576
Interest received 1 460 598 1 300
Capital profit: disposal
of properties - 470 559
Provision for
irrecoverable loans - - (4 300)
30 488 27 946 52 135
Interest paid 6,2 15 479 14 577 29 178
Depreciation 109 181 377
Profit before debenture
interest 11,5 14 900 13 188 22 580
Debenture interest 16,0 14 376 12 393 25 773
Profit before taxation 524 795 (3 193)
Taxation 351 242 377
Profit/(Loss) attributable
to ordinary shareholders 173 553 (3 370)
Earnings per linked unit
(cents) 14,41 13,0 22,29
Headline earnings per
linked unit (cents) 14,60 12,5 26,04
Distribution per linked
unit (cents)
Dividends 0,07 0,06 0,13
Interest 14,43 12,44 25,87
Total 16,0 14,50 12,50 26,00
RECONCILIATION OF HEADLINE EARNINGS
Linked units issued 99 624 992
Profit attributable to ordinary shareholders 173 000
Debenture interest 14 376 000
14 549 000
Headline earnings per linked units 14,60
Adjustment to current valuation (191 000)
14 358 000
Earnings per linked unit 14,41
NOTES
1. The same accounting policies and methods of computation were followed as
in the financial statements of 28 February 2001.
2. Capital expenditure during the period amounted to R4,3 million. Adequate
arrangements have been made to finance the above capital expenditure.
3. The Group has a capital commitment of approximately R3,4 million in
respect of renovations to Bosschoe. This will be financed by loans.
4. Guarantees amounting to approximately R1,5 million have been issued to
the City Council of Pretoria in respect of electricity deposits for various
subsidiaries.
5. Investment properties and investments are shown at fair value.
6. Since 31 August 2001 your company has increased its investment in
Institutional Property Syndication (Pty) Limited from approximately 18% to
40%.
COMMENTS
1. The interim distribution of 14,5 cents per linked unit is slightly higher
than projected. This increase is mainly attributable to the benefits of
positive gearing which have been realised as a result of the decline in
interest rates.
2. Vacancies represent approximately 10,4% of total potential rental income.
3. Your company is investigating the acquisition of properties yielding a
suitable return with sustainable income and growth.
ABRIDGED CONSOLIDATED BALANCE SHEET
R'000 31/8/01 31/8/00 28/2/01
ASSETS
Investment in fixed properties 461 888 409 810 457 777
Investments - unlisted 24 4 369 147
Deferred taxation 115 - 115
Current assets 4 351 3 572 3 484
Total assets 466 378 417 751 461 523
EQUITY AND LIABILITIES
Share capital 996 996 996
Non-distributable reserve 44 704 5 247 44 895
Retained profit 370 249 267
Ordinary shareholders' interest 46 070 6 492 46 158
Debentures 167 510 167 510 167 510
Linked unit holders' interest 213 580 174 002 213 668
Interest bearing borrowings 212 874 209 741 207 945
Current liabilities - interest
bearing 10 439 6 687 11 631
- non-interest bearing 29 485 27 321 28 279
Total equity and liabilities 466 378 417 751 461 523
Linked units in issue 99 624 992 99 624 992 99 624 992
Net asset value per linked
unit (cents) 214 174 214
ABRIDGED CONSOLIDATED CASH
FLOW STATEMENT
Six Six
months months Year
to to to
R'000 31/8/01 31/8/00 28/2/01
CASH FLOW FROM OPERATING ACTIVITIES
Net rental income from properties 28 919 26 697 54 199
Adjustment for:
- Depreciation 109 181 377
- Working capital changes (844) 2 614 2 772
Cash generated from operations 28 184 29 492 57 348
Investment income 1 460 598 1 300
Finance costs 15 479) (14 577) (29 179)
Taxation paid (215) 12 (225)
Distribution to linked unit
holders paid (13 449) (11 806) (24 259)
Net cash inflow (outflow) from
operating activities 501 3 719 4 985
CASH FLOW FROM INVESTING ACTIVITIES
Investing activities (4 288) (20 136) (27 149)
Proceeds from sale of fixed assets - 1 124 3 834
Net cash outflow used in
investing activities (4 288) (19 012) (23 315)
Cash flow from financing
activities 4 929 7 959 13 470
NET INCREASE IN CASH AND
CASH EQUIVALENTS 1 142 (7 334) (4 860)
Cash and cash equivalents at
beginning of period/year (1 207) 3 653 3 653
Cash and cash equivalents at
end of period/year (65) (3 681) (1 207)
STATEMENT OF CHANGES IN EQUITY
Non-
distri- Distri-
Share butable butable
R'000 capital reserve reserve Total
Balance at 1 March 2000 996 4 777 226 5 999
Loss attributable to
ordinary shareholders (3 570) (3 570)
Dividends (130) (130)
Adjustment to current
valuation (Investment
properties) 43 859 43 859
Transfer to non-
distributable reserve 40 118 (40 118) -
Balance at 1 March 2001 996 44 895 267 46 158
Profit attributable to
ordinary shareholders 173 173
Dividends (70) (70)
Adjustment to current
valuation (investment
properties) (191) (191)
Transfer to non-
distributable reserve (191) 191 -
Balance at
31 August 2001 996 44 704 370 46 070
DECLARATION OF DIVIDEND AND INTEREST PAYMENT NO. 15
Notice is hereby given that dividend No. 15 of 0,07 cents (0,06 cents -
2000) per ordinary share and interest of 14,43 cents (12,44 cents - 2000)
per debenture totalling 14,50 cents (12,50 cents - 2000) have been declared
payable to linked unitholders registered in accordance with the settlement
procedures of STRATE. The last date to trade cum entitlement is Friday, 16
November 2001.
The units will commence trading ex entitlement on Monday, 19 November 2001.
Record date will be Friday, 23 November 2001.
No dematerialisation of linked unit certificates may take place between
Monday, 12 November 2001 and Friday, 23 November 2001, both days inclusive.
Payment will be effected on Monday, 26 November 2001.
By order of the Board
City Property Administration (Proprietary) Limited
A Wapnick J P Wapnick
25 October 2001
Registered office: Downies Building, 373 Proes Street, Pretoria, 0002
PO Box 15, Pretoria, 0001. Tel. (012) 326-8811
Transfer secretaries:
Computershare Services Limited (Reg. No. 1958/003546/06)
2nd Floor, Edura, 41 Fox Street, Johannesburg, 2001
P O Box 61051, Marshalltown, 2107
Tel. (011) 370-7700. Fax (011) 688-7712
