| Mon 19 Jun 2006, 7:05 | | Paramount Delivers Solid Interim Results |
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PRA
PRA
Paramount Delivers Solid Interim Results
Paramount Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 1945/019928/06)
Share code: PRA
ISIN : ZAE000028577
("Paraprop")
Thursday 15 June 2006
PARAMOUNT DELIVERS SOLID INTERIM RESULTS
Listed property loan stock company, Paramount Property Fund (Paraprop) has
declared a distribution of 16 cents per linked unit for the second quarter ended
30 April 2006, bringing its six monthly distributions to 30 cents compared with
26 cents for the same period last year. This represents growth of 15%, which is
significantly more than the 8% target mentioned in last year"s annual report.
Paraprop Managing Director, Rodney Squire-Howe said: "Our results are better
than we anticipated and the Board felt that we should pay this out to
shareholders. We have seen good rental growth from the portfolio and achieved
further savings in our cost of borrowings, and prospects are positive".
Squire-Howe noted that as a result of tight management, vacancies remained very
low at 2,21% of total rentable area. Of this area a further 0,64% is covered by
rental guarantees, making the `real" vacancy as low as 1,57%.
At the end of the period under review, the size of the Paraprop portfolio had
grown to R2,14 billion, with the R849 million in new acquisitions reported at
the end of the 2005 financial year being transferred into the fund. In addition,
acquisition agreements for a further five new properties totalling R276 million
were signed which will be transferred into the fund after 30 April, bringing the
total portfolio to R2,32 billion and positioning Paraprop firmly as a mid-cap
fund in the listed property sector.
Squire-Howe said the new acquisitions were a combination of retail, commercial
and industrial properties, but with an increased retail component, and were
located in Gauteng and KwaZulu-Natal. "This is in line with our strategy to
focus more on retail, seeking out well-located, but slightly older centres where
yields are reasonable and we believe we can add value.
We also have some very exciting development initiatives underway, including the
redevelopment of the Claremont Pick `n Pay property, and the `Grand Parade
Centre" in Cape Town."
Squire-Howe noted that during the period under review, the company had
securitised a significant portion of its borrowings, which will result in future
interest-cost savings. The recent interest rate hikes would also have
negligible impact on the company, as borrowing rates were fixed on around 70% of
borrowings through interest-rate hedges. "All-in-all, the company looks in good
shape, going forward", said Squire-Howe.
Ends
Contact: Rodney Squire-Howe, Managing Director
Paramount Property Fund
(021) 659-5945
Issued by: Nicola Nel
Atmosphere PR
(021) 461-2117; 082 459 2288
Alice Jordan
(011) 250 7963; 083 448 2650
Date: 19/06/2006 07:05:14 AM Produced by the JSE SENS Department
