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Sep 01, 2008:
Property specialist Pangbourne (PAP) on Friday reported that its distribution for the year to June 30 amounted to 120,93 cents per unit, an increase of 6,08% over the 114 cents per unit distribution for the year ended June 30 2007.
It reported that its diluted earnings per linked unit for the year had improved to 422,95 cents from 257,99 cents a year earlier.
In total, 152 properties (including vacant land), with a total value of R1,469bn were disposed of during the past financial year.
Net rental and related income grew to R455m from R361m the year before.
Restructuring of the Pangbourne Group occurred during the financial year as mandated by unitholders at the last general meeting. The result has been a change to the board of directors, company structure and significant change in executive management. Property management has been outsourced to Gensec Limited trading as JHI.
"The disappointing growth in Pangbourne's distribution for the year under review is attributable to the dismantling of the 'Octopus', and to the move away from its previous reliance on non-recurring income towards sustainable, core rental income generated from investment properties," explained the company.
The company, however, foresees strong growth ahead.
"Although some weakening in the retail, industrial and commercial property market is expected during the next twelve months, the rentals for the bulk of the industrial portfolio are significantly below market levels," it said.
"The favourable lease expiry profile, along with quality tenants, should largely protect Pangbourne from any deterioration in the macroeconomic environment. These facts, coupled with the attractive fixed rates for the majority of Pangbourne's borrowings, place Pangbourne in a position to achieve stronger earnings growth for the 2009 financial year," concluded the company. – I-Net Bridge
