Slight drop in Putprop revenue, net profit

Listed property company Putprop reported on Friday that its net profit after taxation for the year to June was R20,5m, slightly down on the restated R21,8m last year.

Putprop, which has investments in commercial and industrial properties, including a property for future residential development, said its revenue had also decreased, by 3%, from R25,4m to R24,7m, mainly as a result of the sale of some properties last year.

The company said the sales resulted in an increase in cash resources and interest received for the year, which increased from R1,2m to R1,8m.

It said that as far as one of its development properties in Lonehill, Johannesburg, was concerned, there had been a delay in the rezoning application because an environmental report was required.

Putprop said that to date it had incurred development costs of R93,000 on the Lonehill property.

But it said its investment in Studio Park, in the Lonehill Boulevard business complex, was now providing a good income stream.

The Studio Park property had been evaluated, showing an increase in value to R4,4m. It had been acquired for R3,6m in February.

The company said it owned a 17,5% interest in a shopping and office complex being developed in Mooikloof, in eastern Tshwane.

The complex would open in March next year. It had also acquired a 15% interest in a complex including a shopping, office, hotel and apartment component in Centurion. Putprop said this development was "partly complete".

These two development investments were "basically longer term in nature and the income streams would only materialise" next year and in 2008, it said.

Putprop's share price was unchanged at R5,50 on Friday.

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