Newly AltX-listed Quantum Property Group(QPG) exceeded pre-listing forecasts by reporting maiden earnings per share 7% ahead of forecasts at R2.72 for the year ended August 2009.

The forecast had been R2.54 rand. The group also reduced the expected headline loss per share from 8.5 cents to 7 cents.

Quantum listed on AltX in October 2008. A highlight for the group was the conversion of an initial R16 million investment in 15 on Orange into a close on R1 billion trophy property asset.

Following the re-valuation of 15 on Orange, the group reported profit after tax of R362 million for the year.

Executive Chairman Chaim Cohen said: "We are proud of our achievements in our first year as a listed company.

"However we are firmly focused on future growth opportunities to ensure we keep delivering shareholder value."

He added that QPG's management is assessing an exciting pipeline of future projects that will look to repeat the 15 on Orange scenario with similar quality developments ranging across the full spectrum of property sectors.

In addition to the 5-star all-suite Hotel, 15 on Orange includes 2 467m2 of boutique retail, 12 luxury penthouse apartments and a 4-storey parking garage.

To further its leisure real estate strategy, QPG appointed Kamil Abdul-Karrim as a non-executive director leveraging his experience as a former Director of Strategic Marketing for Southern Sun Hotels.

CEO Gary Itzikowitz pointed out that the experienced management team offers competitive advantages that will enable QPG to maximise its growth ambitions.

"Our management is adaptable to economic cycles, our fixed cost base is controlled and our business model is easily scalable.

"This means we are able to weather economic down-cycles, explode in up-cycles and quickly capitalise on growth opportunities that present themselves at all times."

He added the commercial, industrial and leisure sectors continued a steady, if challenged performance during the year and are showing initial signs of recovery.

"It is on these stable markets that QPG will continue to focus for future growth."

He pointed out that capital raising will be a challenge for QPG going forward in light of the scarcity and cost of finance in the current credit environment.

"However, our management team is invested with significant confidence by major banking institutions based on track records of successful property developments even in harsh conditions."

In addition QPG beefed up its capital raising expertise when it appointed Johann Opperman to its board during the year.

Opperman is former director in Standard Bank's property division with over 20 years' experience in equity investments at large financial institutions.

Looking ahead, Itzikowitz said the resilience of the South African economy is encouraging especially as it continues to grow, albeit at a slower rate than previously.

Source: I-Net Bridge