This will counter the
adverse trend experienced in 2002 when headline earnings declined by
8,4%.

PFM capital comprises 63 properties and is a broadly-based commercial
portfolio incorporating offices, industrial and retail properties.
Vigorous PFM asset management reduced vacancies from 13%, at the end
of 2001, to 10%, at the end of 2002.

A programme has also commenced to improve the quality of the
portfolio, and many older properties were sold during the year.
Offers totalling R68-million have been made for the purchase of 2
Long Street, an office block in Cape Town, and Southway Mall, a
retail centre in Durban, to be settled through the issue of units at
180 cents each.

Charles Ryan, director of PFM, said, 'In addition to a rejuvenation
of the port-folio through sales of older, under-performing properties
and acquisition of better quality properties to achieve a better
balanced sectorial spread, options to enhance the risk, profile
earnings and liquidity are being explored through the creation of a
substantially larger fund.'

Although the valuers' opinions of market valuations of the portfolio
showed a decrease from 253 cents to 221 cents, Ryan said that he
expected an improvement in asset values in the future as market
conditions improved and the effects of management action became
apparent.

The current price at 185 cents reflects a 16% discount on the asset
value, assessed at June 30 2002. Trading in Capital's units in 2002
increased to 20%, which was double that of 2001.

Publisher: The Star
Source: The Star