| Wed 30 Apr 2003, 17:49 | | Reviewed Results |
|
Premium Properties Limited -
Premium Properties Limited
and its subsidiaries
Incorporated in the Republic of South Africa
Registration number: 1994/003601/06
Share code: PMM
ISIN number: ZAE000009254
Notice to linked unitholders
The directors report the reviewed results of the group for the year ended 28
February 2003 set out below, together with comparisons with the results for the
corresponding year ended 28 February 2002
CONSOLIDATED INCOME STATEMENT
Year to Year to
28 Feb 28 Feb
% 2003 2002
change R"000 R"000
Turnover (rental income) 9,4 96 799 88 507
Net rental from properties 8,7 63 419 58 353
Interest received 1 679 2 375
Capital profit: acquisition of loan
at a discount - 3 977
Adjustment to current valuation
(investment properties) 25 535 725
Adjustment to current valuation 30 041 725
Less: deferred tax (4 506) -
Reversal of irrecoverable loans
to investee company - 3 300
Capital profits and losses 63 -
90 696 68 730
Interest paid 14,2 35 034 30 690
Depreciation 747 445
Profit before debenture interest 43,3 54 915 37 595
Debenture interest 1,4 29 150 28 752
Profit before taxation 25 765 8 843
Taxation 17 555
Profit after taxation 25 748 8 288
Earnings per linked unit (cents)
(basic and diluted) 55,10 37,18
Headline earnings per linked unit (cents)
(basic and diluted) 29,41 29,15
Distribution per linked unit (cents)
Dividends 0,14 0,14
Interest 29,26 28,86
Total 29,40 29,00
ABRIDGED CONSOLIDATED BALANCE SHEET
28 Feb 28 Feb
2003 2002
R"000 R"000
ASSETS
Investment properties 526 828 454 207
Property, plant and equipment 18 215 18 676
Investments - associated company 8 996 7 893
Current assets 5 671 5 477
Total assets 559 710 486 253
EQUITY AND LIABILITIES
Share capital 996 996
Non-distributable reserve 78 495 52 897
Retained profit 424 413
Ordinary shareholders" interest 79 915 54 306
Debentures 167 510 167 510
Linked unitholders" interest 247 425 221 816
Interest-bearing borrowings 256 912 221 689
Deferred taxation 4 506 -
Current liabilities - interest-bearing 13 213 11 755
- non-interest-bearing 37 654 30 993
Total equity and liabilities 559 710 486 253
Linked units in issue 99 624 992 9 624 992
Net asset value per linked unit (cents) 248 223
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Year to Year to
28 Feb 28 Feb
2003 2002
R"000 R"000
Cash flow from operating activities
Net rental income from properties 62 673 57 908
Adjustment for:
- Depreciation 747 445
- Working capital changes 4 498 2 447
Cash generated from operations 67 918 60 800
Investment income 1 679 2 375
Finance costs (35 034) (30 690)
Taxation paid (703) (608)
Distribution to linked unit holders paid (27 397) (27 895)
Net cash inflow from operating activities 6 463 3 982
Cash flow from investing activities
Investing activities (5 298) (15 293)
Proceeds from sale of investment properties 1 391 -
Net cash outflow used in investing
activities (43 907) (15 293)
Cash flow from financing activities 36 681 15 242
Net increase in cash and cash equivalents (763) 3 931
Cash and cash equivalents at beginning
of year 2 725 (1 206)
Cash and cash equivalents at end of year 1 962 2 725
STATEMENT OF CHANGES IN EQUITY
Revalu- Distribu-
Share Capital ation table
capital reserve reserve reserve Total
R"000 R"000 R"000 R"000 R"000
Balance at
1 March 2001 996 1 036 43 859 267 46 158
Profit attributable
to ordinary
shareholders - - - 8 288 8 288
Dividends paid - - - (140) (140)
Transfer to non-
distributable
reserve - 7 277 725 (8 002) -
Balances at
1 March 2002 996 8 313 44 584 413 54 306
Profit attributable
to ordinary
shareholders - - - 25 748 25 748
Dividends - - - (139) (139)
Transfer to non-
distributable
reserve - 63 25 535 (25 598) -
Balance at
28 February 2003 996 8 376 70 119 424 79 915
RECONCILIATION of HEADLINE EARNINGS TO EARNINGS PER LINKED UNIT
Year to Year to
28 Feb 28 Feb
2003 2002
R"000 R"000
Headline earnings per linked unit 29,41 29,15
Capital profit
- Acquisition of loan account - 3,99
- Capital profits and losses 0,06 -
- Reversal of irrecoverable loans - 3,31
- Adjustment to current property valuation 25,63 0,73
Earnings per linked unit 55,10 37,18
NOTES
1. The same accounting policies and methods of computation were followed as in
the financial statements of 28 February 2002 and are in accordance with South
African Statements of Generally Accepted Accounting Practice.
2. The group has entered into a rationalisation agreement in order to further
streamline operations. This corporate restructure is effected in terms of
Section 44 of the Second Revenue Laws Amendments Act 2001.
3. An amount of R15,6 million has been committed for by the company in respect
of capital expenditure relating to the improvement of certain properties. These
developments will be financed by way of existing facilities as well as
additional funding from the company"s bankers.
4. Capital expenditure during the year amounted to R43,9 million, which includes
R1,5 million capitalised interest. Adequate arrangements have been made to
finance these capital commitments.
5. Guarantees amounting to approximately R2 million have been issued to the City
of Tshwane Metropolitan Municipality in respect of electricity deposits for
various subsidiaries.
6. The company has bound itself as surety in favour of Nedbank Property Finance,
in respect of loans granted to an associated company IPS Investments (Pty)
Limited, which at year-end amounted to R23,8 million.
7. The company has valued its investment properties at fair value in accordance
with AC135.
8. The results have been reviewed by the company"s auditors, Grant Thornton
Kessel Feinstein. A copy of their unqualified review opinion is available for
inspection.
COMMENTS
1. The total distribution of R29,3 million equates to a distribution of 29,4
cents (2002 - 29 cents) per linked unit for the year under review. This was
achieved in difficult economic conditions characterised by an enviroment of
interest rate increases.
2. The total cost of funding is currently 14,7% and 48% of the borrowings at
year-end are fixed. Opportunities to further manage the exposure of long- term
borrowing rates are currently being evaluated.
3. Vacancies represent approximately 7% (2002 - 8%) of total potential rental
income.
4. There is a reasonable expectation of interest rates being lowered during the
course of the next financial year, which should provide increased earnings to
unitholders. Assuming interest rates remain at current levels, the directors
expect that the distributable income for the next financial year will not be
less than the current distribution of 29,4 cents. The company"s auditors, Grant
Thornton Kessel Feinstein, have examined and reviewed the basis and assumptions
underlying the forecast above. A copy of their review is available for
inspection.
5. Your company continues to investigate the acquisition of properties yielding
a suitable return with sustainable income and growth.
DECLARATION OF DIVIDEND AND INTEREST PAYMENT NO 18 ("the Distribution")
Notice is hereby given that dividend No. 18 of 0,08 cents (2002 - 0,07 cents)
per ordinary share has been declared together with interest for the period 1
September 2002 to 28 February 2003 of 16,32 cents (2002 - 14,43 cents) per
debenture payable to linked unitholders recorded in the register on Friday, 23
May 2003. The last date to trade "CUM" Distribution is Friday, 16 May 2003. The
units will commence trading "EX" Distribution on Monday, 19 May 2003. Payment
date will be Monday, 26 May 2003. No dematerialisation or rematerialisation of
linked unit certificates may take place between Monday, 19 May 2003 and Friday,
23 May 2003, both days inclusive.
By order of the Board
City Property Administration (Proprietary) Limited
30 April 2003
A Wapnick JP Wapnick
Chairman Managing director
Directors: A Wapnick (Chairman), JP Wapnick (Managing director), MJ Holmes, RJ
Inggs, J Pollack, MZ Pollack, S Wapnick
Registered Office: Downies Building, 373 Proes Street, Pretoria 0002
PO Box 15, Pretoria 0001
Tel: (012) 326 8811
Fax: (012) 325 2209
Transfer Secretaries: Computershare Investor Services Limited (Reg No
1958/003546/06), 70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown 2107
Tel: (011) 370 7700
Fax: (011) 688 7712
