ATLAS PROPERTIES LIMITED -
ATLAS PROPERTIES LIMITED
Incorporated in the Republic of South Africa
Reg.no. 1988/000742/06
Share Code: ATS
ISIN Code: ZAE000008975
ATLAS DELIVERS TOP RETURNS
Cape-based property loan stock Atlas Properties Limited continued its earning
growth trend by delivering a 5,1% increase in earnings distributions compared to
the 2002 financial year. In addition the share price has risen by 49% giving a
total return to shareholders of 63% for the year.
The past year has seen an unprecedented rise in the unit prices of listed
property companies on the back of lower interest rates. After the meltdown in
share prices of IT companies, the market has come to realise that property
should be a cornerstone in any investment portfolio. It is likely that property
values will rise in the near future as capitalisation rates firm in line with
lower inflation expectations.
Atlas has continued to increase earnings for the ninth successive year despite a
tough economic environment and a weak office market. The growth in earnings is
consistent with the pattern established by Atlas" "in house" management team.
Since the current team took over in the 1994 financial year total return to
unitholders has exceeded 21% per annum compound.
Subsequent to the year end Atlas has acquired the Standard Bank property in
Tyger Valley for approximately R9 million. In addition Atlas has acquired two
parking areas adjacent to Howard Centre in Pinelands and negotiated a long lease
over a third parking area. It is intended to construct a parking deck for Howard
Centre to increase the number of bays available for shoppers. In addition the
Centre will undergo a substantial upgrade with some additional space being
created. A better variety of tenants will be added and combined with controlled
parking the property should become a core holding. The total cost is estimated
at R25 million.
The combination of company structure and the fact that senior management and
staff hold substantial interests in the company results in all staff being
totally focused on sustainable earnings growth.
Date: 25/11/2003 04:07:02 PM Supplied by www.sharenet.co.za
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