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ATS
ATS
Atlas - Atlas Continues Its Impressive Earnings Growth Record
PRESS RELEASE
ATLAS PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1988/000742/06)
Share code: ATS & ISIN: ZAE000008975
("Atlas")
ATLAS CONTINUES ITS IMPRESSIVE EARNINGS GROWTH RECORD
Atlas has continued its strategy of sustainable earnings growth with the
twelfth successive year of increased earnings. Atlas grew its distributable
earnings per unit by 9,3% to 115,260 cents for the year. Tangible net asset
value per unit rose 20% over the period from 1 214 cents to 1 458 cents.
Building vacancies reduced from 7,8% to 2,9% of building area and from 4,6%
to 1,9% of rental income.
The company reported that the commercial market has performed strongly across
all sectors with industrial and office rentals in particular showing solid
growth.
The strong economy led to a decline in vacancies and strong demand and high
building costs are exerting upward pressure on rentals.
Atlas is internally managed and administered and as a result has no management
conflicts of interest. This ensures a focus on sustainable earnings growth.
Atlas" goal has been to provide real returns (after inflation) in excess of 7%
per annum compound and, critically, to provide sustainable earnings growth
over the long term.
During the year Atlas successfully completed the upgrade of Bayside Mall, of
which it owns 50%. A R110 million expansion of the Mall also commenced with
completion due by December 2006. The total cost to Atlas of the upgrade and
expansion will amount to R59 million.
The expansion and upgrade of Bayside Mall will consolidate its position as the
dominant "convenient regional" centre serving the fast-growing areas of
Blaauwberg, Tableview and Parklands.
Atlas also developed two of the five erven it owns jointly in Century Gate,
part of Century City. The properties have been leased to LSM Distributors who
are the South African agents for Porsche cars.
Subsequent to year-end, Atlas acquired a 6 hectare site in Somerset West for
R30 million. It is situated on the N2 next to Somerset Mall. The intention is
to develop further bulk retail on the site once tenants are confirmed which
will add to Atlas" Cape retail focus.
Westville Mall is to be expanded and upgraded next year with the addition of a
further 3 000 m2 of retail space, as well as an office building of 3 000 m2 and
associated parking. This development will significantly enhance the property
and improve the quality of Atlas" earnings.
Atlas is also looking at a possible office development on some of its vacant
land at Golf Park.
CEO Ian Raubenheimer reported that the property market fundamentals remain
solid with upward pressure on rentals on the back of strong fixed investment
and consumption expenditure. Atlas" portfolio is well positioned to benefit
from the rental growth. In addition, there are a number of developments in
the pipeline which will enhance the quality of earnings and growth over time.
Atlas" primary goals are to maintain consistent and sustainable earnings
growth and to grow the company"s assets to create value for unitholders.
Date: 24/11/2006 03:05:06 PM Produced by the JSE SENS Department
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