Adrenna Property Group doubles headline earnings

Posted On Tuesday, 04 June 2013 15:27 Published by Commercial Property News
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ADRENNA Property Group’s headline earnings per share more than doubled to 5.9c in the year to February from 2.7c in the previous corresponding period, due to stringent controls and emphasis on tenancy levels, financial director Hartmann Beukes said on Friday.

Adrenna has a property portfolio with a value of just under R200m consisting mainly of commercial property in Goodwood, Cape Town, and one in Hout Bay, that have tenants ranging from hairdressers to the Ocean Basket restaurant.

The company said revenue from its Western Cape-based property portfolio rose 13.1% to R29.78m from R26.32m. Operating income before interest and revaluations increased 36% to R12.59m, compared with R9.24m in the previous year.

Tangible net asset value at the end of the financial year was 174.5c per share, 11.4% higher than the 156.6c that was reported in the prior corresponding period.

There was a R10.85m fair value positive adjustment on investment properties, which was well up on the R2.7m from this source last year. But headline earnings were well up in spite of this, Mr Beukes said.

Income attributable to ordinary shareholders turned around markedly to R10.53m profit from a R53.2m loss the year before.

However, taking into account the effects of the depressed economy and related problems in the property industry, the directors resolved not to pay a dividend in order to retain cash for future growth.

Mr Beukes said the company had created "real value" for shareholders following last year’s management buy-out of noncore properties, and a "focus on cost cutting and ensuring our tenancies remain extremely high."

Occupancy rates at various properties averaged about 96% in the past financial year. "We have cleaned up the listing. Our focus for the future will be on growth," Mr Beukes said.

The growth strategy included the ongoing focus on costs and tenancy levels, as well as the possible acquisition of additional properties. 

Last modified on Tuesday, 04 June 2013 19:57

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