Pangbourne Properties Interim Results

Posted On Monday, 21 February 2005 02:00 Published by eProp Commercial Property News
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Pangbourne has increased its distributions by 4,7% as a result of improved occupancies and increased rentals in the companies industrial property portfolio.

Property-Housing-Residential

Demand for industrial space remains strong and the company is developing its vacant land in Jet Park to meet growing demand in the area. Strong enquiries have been received for developments on the vacant land in Imvubu Business Park, in the Riverhorse Estate north of Durban, and work is expected to start soon on this site at favourable yields.

The company’s investment in iFour has increased significantly in value since the last financial year end, due to the rise in that company’s share price.

Pangbourne’s investment remains at 49%. iFour’s securitisation of its loan book, which was the first in South Africa, was well received in the market. PROPS, the company jointly owned by Pangbourne and iFour was awarded “Deal of the Year for South Africa” by the prestigious international magazine, The Banker.

Pangbourne’s assets under management now total R4 billion and its own property portfolio exceeds R1,5 billion. The transfer of the Strupot portfolio has been completed, although at a later date than expected due to delays in the various deeds offices.

Certain of the vacant properties have however been let at better than anticipated rentals. Two smaller properties from the Strupot portfolio have been sold, as they didn’t meet Pangbourne’s investment criteria. Additional properties are currently under negotiation for sale at acceptable yields.

The directors have increased the borrowing capacity of the company to 50% of income producing assets from 40%, in view of the stability in debt markets and the economy of South Africa.

Paforma continues to show growth in new business, and profits for the interim period grew by 227% when compared to the same period last year. The profit attributable to Pangbourne is expected to well exceed those of last year.

Pangbourne was the first property investment company to use the loan stock structure of variable debenture equity financing.  The first loan stock company to be listed on the JSE in 1987 with income earning assets of R146 million, it continued to set the pace by taking its property management in-house and also became the first to take over another listed loan stock.

Pangbourne’s vision is to create a property company that can produce sustainable growth in total returns to investors over the long term. This will be achieved in part by capitalising on the management expertise and experience gained over the years by expanding its property management activities.

Pangbourne’s market capitalisation has increased from R250 million in 1998 to the current level of R1, 75 billion.  Net annualised return to unit holders of 19% over the past 10 years is well ahead of the JSE ALSI.  Core to these achievements was the decision to change to own management of the properties, which effectively aligns management’s objectives with those of unit holders.

Last modified on Tuesday, 13 May 2014 13:56

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