| Wed 13 Feb 2002, 0:00 | | Pangbourne Properties Limited - Unaudited Financia |
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months ended 31 December 2001
Pangbourne Properties Limited
Registration No. 1987/002352/06
ISIN No: ZAE 000005252
Share Code: PAP
Unaudited financial results for the six months ended
31 December 2001
Issued share capital 81 582 361 (2000: 81 196 028) ordinary shares of 1 cent
each
- Issued debentures 734 241 249 (2000: 730 784 234)
unsecured variable rate debentures of 50 cents each
- Issued combined units 81 582 361 (2000: 81 196 028)
- Weighted average combined units 81 582 361 (2000: 79 338 513)
Abridged consolidated income statement
Six months to Year to
R'000 31.12.01 31.12.00 30.06.01
Revenue 69 744 62 027 136 530
Profit from operations 43 053 42 914 81 113
Revaluation of investment
properties - - 8 528
Negative goodwill amortised
and realised 4 563 6 239 12 655
Goodwill amortised - (1 000) (1 000)
Trading scrip income and
profits on sale 6 279 - -
Net profit/(loss) on disposal
of investment properties 9 (1 370) (1 707)
Profit before interest and
taxation 53 904 46 783 99 589
Investment income 205 - 219
Interest received 3 000 1 851 5 501
Interest paid (18 440) (12 156) (28 335)
Profit before taxation and
distributions to unitholders 38 669 36 478 76 974
Taxation (83) (80) 4 505
Profit for the period 38 586 36 398 81 479
Opening retained earnings 22 321 11 621 11 621
Available for distribution 60 907 48 019 93 100
Distributions to unitholders (33 448) (32 435) (70 779)
Closing retained earnings 27 459 15 584 22 321
Diluted and non-diluted - units
Headline earnings per unit
(cents) 41,69 41,00 80,29
Earnings per unit (cents) 47,30 45,88 101,35
Distributions per unit (cents) 41,00 41,00 88,00
Diluted and non-diluted - shares
Headline earnings per share
(cents) 1,50 0,92 (6,02)
Earnings per share (cents) 7,10 5,80 15,04
Dividends per share (cents) 0,80 0,80 1,73
Distributions to unitholders
Debenture interest 32 792 31 799 69 391
Dividends 656 636 1 388
Total distributions 33 448 32 435 70 779
Accounting policies
The accounting policies stated in the 2001 annual report have been
consistently applied and comply with the statements of GAAP.
Investment properties are professionally valued every three years, with
management undertaking an internal valuation for each of the other years.
Nothing has come to the attention of management that would lead them to
believe that property values at 31 December 2001 differ materially from
those established as at 30 June 2001.
Movement in unitholders' funds
Six months to Year to
R'000 31.12.01 31.12.00 30.06.01
Unitholders' funds at
beginning of period 466 034 368 613 368 613
Profits for the period 38 586 36 398 81 479
Capital transactions and
distributions to unitholders (33 448) 51 968 15 942
Units issued - 84 403 86 721
Distributions to unitholders (33 448) (32 435) (70 779)
Unitholders' funds at end
of period 471 172 456 979 466 034
Abridged consolidated balance sheet
As at
R'000 31.12.01 31.12.00 30.06.01
ASSETS
Non-current assets
Property, furniture and
equipment 781 293 714 488 737 502
Negative goodwill (24 340) (35 321) (28 903)
Investments 3 148 - 3 111
Long-term loans 29 113 31 424 30 184
Deposits held 725 623 647
Deferred interest 1 774 1 905 1 753
Deferred taxation asset 5 062 - 5 203
Current assets
Accounts receivable 51 274 56 448 46 170
Trading scrip 1 818 - -
Current portion of
long-term loans 1 795 1 925 1 859
Current portion of
deferred interest 1 036 1 166 1 287
Total assets 852 698 772 658 798 813
EQUITY AND LIABILITIES
Unitholders' funds 471 172 456 979 466 034
Interest-bearing borrowings 319 147 264 243 274 819
Current liabilities
Accounts payable and accruals 21 528 15 257 17 350
Bank overdraft 4 756 6 579 114
Taxation 1 546 1 181 1 717
Unitholders for distribution 34 549 28 419 38 779
852 698 772 658 798 813
Net debt: income earning assets 38,7% 35,3% 34,8%
Net asset value per unit
excluding negative goodwill
(cents) 607 607 607
Abridged cash flow statement
Six months to Year to
R'000 31.12.01 31.12.00 30.06.01
Cash generated from operations 45 356 22 354 78 043
Net interest paid (15 440) (10 305) (22 834)
Investment income 205 - 219
Trading scrip income 1 962 - -
Taxation paid (113) (24) (493)
Distributions to unitholders (37 678) (36 086) (63 462)
Cash flows from operating
activities (5 708) (24 061) (8 527)
Cash flows from investing
activities (46 135) (4 589) (89 247)
Cash flows from financing
activities 47 201 19 865 95 454
Net decrease in cash and
cash equivalents (4 642) (8 785) (2 320)
Cash and cash equivalents at
beginning of period (114) 2 206 2 206
Cash and cash equivalents
at end of period (4 756) (6 579) (114)
RESULTS
Headline earnings for the six months ended 31 December 2001 were 41,69 cents
per unit (2000: 41,00 cents). Turnover and interest paid both increased as a
result of additional properties purchased.
The rental market remains depressed, with vacancies above budget and rentals
on renewals and new leases below budget. As reported in the last annual
report, several major leases ended in the review period, including Maynard
Plaza, and progress on filling the space has been slower than anticipated.
This resulted in occupancies at 31 December 2001 of 88,8% as against 93,1%
at 30 June 2001.
Paforma's turnover has been adversely affected by the application of far
more stringent risk control measures. Its operating profit for the period
was R0,9 million (2000: R1,4 million).
RECENT TRANSACTIONS
As announced in December, Pangbourne has reached agreement with Sage
Property Trust Managers Ltd ("SPTM") and ABSA Bank Ltd, the management
company and trustee respectively of CBD Property Fund ("CBD") and Pioneer
Property Fund ("Pioneer"), for the acquisition by Pangbourne of all of the
assets and liabilities of CBD and Pioneer with effect from 31 March 2002.
The consideration for the acquisitions will be settled by the issue of
100327920 new units in Pangbourne. Pangbourne will also acquire 100% of the
issued share capital of SPTM with effect from 31 March 2002. As set out in
the announcement, these acquisitions will significantly increase the size of
Pangbourne's portfolio and market capitalisation and are expected to be
beneficial to unitholders. The acquisitions remain subject to certain
conditions precedent, including the sanction of unitholders in the three
funds at meetings to be held on 19 February 2002, approval of the
Competition Commission and the High Court giving the orders for the winding-
up of CBD and Pioneer. In January 2002, Pangbourne acquired 10 million units
in CBD and 5 million units in Pioneer for a total consideration of R30,6
million.
Also announced in December 2001 was the acquisition of three quality
properties with good leases for R36,3 million and the disposal, effective
January 2002, of a portfolio of nine older properties to ApexHi Properties
Ltd ("ApexHi"). The consideration for the disposal, which remains subject to
Competition Commission approval, is R66,7 million to be settled by the issue
of 5,3million "A" units and 5,3million "B" units in ApexHi. The disposal
will result in a loss against book value of R6,6 million. One other property
was disposed of for R1,9 million. These transactions have all served to
improve the quality of Pangbourne's portfolio.
It was reported in the last annual report that Pangbourne acquired 2,6
million units in ApexHi in July 2001 for R29,1 million. 2,4million of these
units were disposed of during the six months to 31 December 2001, realising
a surplus of R6,3 million, comprising distributions received and profits on
sale.
Pangbourne has entered into an agreement to acquire a 40% interest in the
development of a R112 million destination retail centre at Umhlanga Ridge.
Pangbourne's share of the equity will amount to R9 million. The centre,
which adjoins Gateway, is substantially pre-let with Pick 'n Pay as the
anchor tenant, and is expected to open in time for Christmas trading this
year.
DISTRIBUTIONS
The directors have declared an unchanged distribution of 41cents per unit in
respect of the six months to 31December2001. As the new Pangbourne units to
be issued pursuant to the CBD and Pioneer acquisitions will not participate
in the income earned by Pangbourne prior to 31 March 2002, a further interim
distribution of 23,5 cents per unit, covering the period 1January2002 to 31
March2002, has also been declared.
PROSPECTS
The property market remains difficult to predict. Pangbourne, however, will
have a property portfolio that is well positioned for any increase in
economic activity, with considerable scope to increase occupancies and thus
earnings. There should also be significant economies of scale to be derived
from the combination of the portfolios of Pangbourne, CBD and Pioneer.
Headline earnings per weighted average unit for the year to 30June 2002 are
expected to exceed those of the previous year and, as previously stated, the
total distributions for the year will not be less than 88cents per unit.
PL Campbell AMA Campbell
Chairman Chief Executive Officer
DECLARATION OF DIVIDENDS AND DEBENTURE INTEREST
Notice is hereby given of the declaration of a distribution of 41,00 cents
per combined unit (2000: 41,00 cents), comprising dividend number 30 of
0,8039 cents per share (2000: 0,8039 cents) and interest on debentures
calculated at 40,1961 cents per combined unit (2000: 40,1961 cents). The
last date to trade cum distribution will be Wednesday, 20 March 2002, and
the combined units will commence trading ex distribution on Friday, 22 March
2002, with the record date being Thursday, 28 March 2002. Payment for the
dividend and debenture interest of 41,00 cents per combined unit will be
effected on 2 April 2002.
Notice is hereby given of the declaration of a second interim distribution
of 23,50 cents per combined unit, comprising dividend number 31 of 0,4608
cents per share and interest on debentures calculated at 23,0392 cents per
combined unit. The last date to trade cum distribution will be Wednesday, 20
March 2002, and the combined units will commence trading ex distribution on
Friday, 22 March 2002, with the record date being Thursday, 28 March 2002.
Payment for the dividend and debenture interest of 23,50 cents per combined
unit will be effected on 2 April 2002.
Unit certificates may not be dematerialised or rematerialised between
Tuesday, 14 March 2002 and Thursday, 28 March 2002, both days inclusive.
On behalf of the board
J J Groenewald Secretary
Pangbourne Properties Limited
2nd Floor, 382 Jan Smuts Avenue, Craighall
Johannesburg 2196
13 February 2002
