| Thu 13 Dec 2001, 0:00 | | Primegro Properties - Audited Results |
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PRIMEGRO PROPERTIES LIMITED
AND ITS SUBSIDIARIES
(Incorporated in the Republic of South Africa)
(Registration number 1998/018436/06)
Share code: PMG ISIN: ZAE000022620
Executive Directors:
M Ettin, D Greenberg (Joint Managing Directors), L Levinsohn
Non-executive Directors:
J F Marais (Chairman), D Claassen, D Donald, P Fechter,
E Loubser, H Mocke, J Molobela
AUDITED RESULTS FOR THE YEAR ENDED 31 OCTOBER 2001
Abridged consolidated income statements
Year ended Year ended
31 October 31 October
2001 2000*
R'000 R'000
Revenue 191 573 111 651
Operating costs (58 210) (34 732)
Operating profit 133 363 76 919
Interest received 2 335 1 474
Operating profit before interest paid
and fair value adjustments 135 698 78 393
Interest paid (77 747) (46 674)
Interest adjustment for zero
coupon financing (27 876) (9 627)
Revaluation of investment properties 136 003 98 231
Goodwill amortised (350) (329)
Profit before taxation and debenture
interest 165 728 119 994
Debenture interest (57 809) (30 988)
Profit before taxation 107 919 89 006
Taxation 350 (336)
Net profit for year 108 269 88 670
Distribution per unit to unitholders (cents) (cents)
- interest 89,82 80,34
- dividend 0,18 0,16
90,00 80,50
Basic earnings per linked unit 265 311
fully diluted earnings per linked unit 264 311
Basic headline earnings per linked unit 49 56
fully diluted headline earnings
per linked unit 48 56
weighted average linked units in issue 62 651 906 38 524 489
Fully diluted linked units in issue 62 893 708 38 524 489
Headline earnings comprise net profit for the year adjusted for goodwill
amortised, revaluation of investment properties and debenture interest.
Abridged consolidated balance sheets
31 October 2001 31 October 2000
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 1 233 530 669 201
Goodwill 6 321 6 671
Deferred taxation 499 115
Current assets 15 529 21 483
Total assets 1 255 879 697 470
EQUITY AND LIABILITIES
Capital and reserves
Share capital 4 195 385
Non-distributable reserve 197 234 88 604
Retained income 28 4
201 457 88 993
Class "B" debentures 324 738 192 237
Linked unitholders' interest 526 195 281 230
Non-current liabilities 650 926 364 303
Interest bearing 549 224 306 546
Non-interest bearing 101 702 57 757
Current liabilities 78 758 51 937
Total equity and liabilities 1 255 879 697 470
Linked units in issue 64 406 292 38 524 489
Net asset value per linked
unit (cents) 817 730
Abridged consolidated cash flow statements
Year ended Year ended
31 October 31 October
2001 2000*
R'000 R'000
Cash flow from operating activities
Cash receipts from tenants 196 297 94 408
Cash paid to suppliers and employees (43 049) (16 948)
Cash generated from operations 153 248 77 460
Interest received 2 335 1 474
Interest paid (77 747) (46 674)
Taxation paid (482) (4)
Distribution to unitholders (45 225) (13 483)
Net cash inflow from
operating activities 32 129 18 773
Cash flow from investing activities
Investment properties acquired (428 342) (548 170)
Proceeds on disposal of property,
plant and equipment 44 17
Net cash outflow from
investing activities (428 298) (548 153)
Cash flow from financing activities
Proceeds from issue of shares 3 810 323
Proceeds from issue of "B" debentures 132 501 161 299
Proceeds from issue of "A" debentures 16 070 64 392
Mortgage bonds raised 242 678 306 605
Net cash inflow from
financing activities 395 059 532 619
Net (decrease)/ increase in cash and
cash equivalents (1 110) 3 239
Cash and cash equivalents
at beginning of year 3 239 -
Cash and cash equivalents
at end of year 2 129 3 239
Abridged consolidated statements of changes in equity
Year ended Year ended
31 October 31 October
2001 2000
R'000 R'000
Share capital and premium
Balance at beginning of year 385 62
Issue of shares - ordinary 2 715 323
Issue of shares - preference 1 095 -
Balance at end of year 4 195 385
Class "B" debentures
Balance at beginning of year 192 237 30 938
Issue of debentures 132 501 161 299
Balance at end of year 324 738 192 237
Non-distributable reserve
Balance at beginning of year 88 604 -
Revaluation of investment properties 136 003 98 231
Revaluation of property,
plant and equipment 503 -
Interest adjustment for zero
coupon financing (27 876) (9 627)
Balance at end of year 197 234 88 604
Retained income
Balance at beginning of year 4 -
Net profit for year 108 269 88 670
Transfer to non-distributable reserve (108 127) (88 604)
Dividends declared (118) (62)
Balance at end of year 28 4
Commentary
Comparative figures
Primegro acquired it's initial portfolio on 22 November 1999 and
accordingly the results for the period to 31 October 2000 do not represent a
full years trading.
Accounting policies
These consolidated preliminary financial statements are prepared in
accordance with South African Statements of Generally Accepted Accounting
Practice and are consistent with the prior year, except for the following:
- Investment properties
The company has adopted accounting statement AC 135: investment Property.
Investment properties, other than those occupied for own use, are valued at
market value with changes in value being reflected in the income statement.
Owner occupied premises are depreciated over their estimated remaining
economic lives. Where properties acquired are paid for partly with interest
free instruments, these interest free instruments, together with the
investment properties, are reflected at fair value at the end of each
reporting period with a corresponding interest charge being shown in the
income statement.
Prior year figures have been restated accordingly.
A qualified, independent external valuer valued the entire portfolio at 31
October 2001.
Post-balance sheet events
- At shareholders' and debenture holders' meetings held on 11 December 2001,
shareholders and debenture holders approved the acquisition by Primegro of
Richway's prime retail portfolio for a price of R1 179 million. This
followed shortly after the announcement on 15 November 2001 that Primegro
has purchased three office/commercial properties from the I.P.D. group.
These acquisitions have doubled the value of the portfolio to over R2,4
billion and will increase Primegro's market capitalisation to approximately
R1 billion.
Guarantees and capital commitments at 31 October 2001
R'000
- Guarantees issued for municipal deposits and transfers
in progress 12 642
- Contracted commitments for the acquisition of properties 1 232 796
Comments on results
The acquisitions made in November 2000 and July 2001 have nearly doubled the
size of the initial portfolio, substantially improving the quality and
sustainability of earnings. The growth in distribution per linked unit of
5,9% (annualising the figures for 2000) was in line with expectations.
Primegro has entered into an agreement with a major independent treasury
services company to manage its exposure to interest rate risks. At the date
of this announcement, interest rates on approximately 80% of existing bonds
have been fixed. In addition, Primegro has purchased an option to fix rates
on R480 million of the funding for the Richway properties at favourable
rates.
The improved quality and long-term sustainability of future income streams
arising from the acquisition of the Richway portfolio is likely to have a
slight dilutionary impact on the growth in distributions in the short term.
DECLARATION OF DIVIDEND AND INTEREST PAYMENT NUMBER 4
Notice is hereby given that dividend No. 4 of 0,094 cent (2000: 0,090
cent) per ordinary share and interest of 46,906 cents (2000: 45,410 cents)
per debenture totalling 47,0 cents per linked unit (2000: 45,5 cents) 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, 4 January 2002. The units will commence trading ex-entitlement on
Monday, 7 January 2002.
The record date will be Friday, 11 January 2002.
Payment will be effected on Monday, 14 January 2002.
No dematerialisation of linked unit certificates may take place between
Monday, 31 December 2001 and Friday, 11 January 2002, both days inclusive.
Where applicable, the amounts will be electronically transferred to linked
unitholders' bank or building society accounts on 14 January 2002. In the
absence of suitable mandates, dividend cheques dated 14 January 2002 will be
posted at the risk of the recipient to linked unitholders on that day.
Unitholders are advised that only linked unitholders are entitled to the
dividend and interest payment No. 4 and that the deferred linked unitholders
are not entitled to such dividend and interest payment. Deferred linked
unitholders are advised to consult the terms upon which the deferred linked
units were issued to them in order to determine when they will become
entitled to dividend and interest payments.
By order of the board
Primegro Property Administrators (Pty) Limited
Secretary
Johannesburg
13 December 2001
Registered office:
18 Rivonia Road, Illovo, Sandton, 2196
Private Bag X02, Northlands, 2116.
Tel (011) 778-4930
Transfer secretaries:
Ultra Registrars (Pty) Limited
11 Diagonal Street, Johannesburg 2001
