Pangbourne Properties announces that the company has shown substantial growth in its total return to unitholders.  With a 5,6% (2004: 4,7%) increase in its interim distribution to 47,00 cents per combined unit, and an increase in the share price from R10,30 on 30 June 2005 to R12,60 as at 31 December 2005, investors have enjoyed a total return for the six months of 27%.

“While this is a short-term return, Pangbourne’s assets are of a long-term nature and our strategy is to create a solid asset base from which to produce sustainable earnings into the future, at a rate exceeding inflation,” says Craig Hutchison, Chief Executive Officer.

Occupancy levels at 31 December 2005 were 94,86%, which is fully let for Pangbourne’s type of portfolio.  The company’s historically short lease expiry profile has enabled it to take advantage of the high demand for industrial space while buoyancy in the property market has enabled it to improve the lease expiry profile. The majority of leases which were previously expiring within one year have now shifted to expiry in three years.

“We have continued to deliver on new business with the highlight for the period being the purchase of the Transnet Retirement Funds Property Trust (TRFPT) portfolio valued at R1 404 million, subject to approval by the Competition Commission and Pangbourne unitholders,” continues Hutchison.  “There are 48 properties in the portfolio, comprising 440 000 m2 of gross lettable area.”

“The TRFPT properties will improve the overall quality of Pangbourne’s portfolio, particularly by reducing the average age profile of the properties."

Pangbourne successfully listed Siyathenga Property Fund Limited, a specialised retail fund, on 5 August 2005; and Pangbourne concluded its first BEE deal ahead of the property charter with Yard Capital (Pty) Limited, structuring a transaction which enabled Yard to acquire 6,15% of Pangbourne combined units in issue without diluting distributions to existing unitholders.

“The conclusion of these transactions during the past 6 months demonstrates the strength and ability of our team to consistently deliver on transactions,” says Hutchison.

The company has been successful in developing its vacant land in the past and will continue to do so in the future, particularly in regard to opportunities which present themselves in portfolios acquired.

The acquisition of TRFPT and resultant cash flows will enable Pangbourne to grow its portfolio and to assist in the growth of the associated specialised funds.  This will increase the asset under management and also provide transaction fees and income to achieve the objective of increasing distributions above inflation.

“Given the current economic outlook for the medium term, earnings are expected to be in line with market expectations. The final distribution is expected to increase by no less than 6%.” concludes Hutchison.

Ends

27 February 2006
 
Issued on behalf of Pangbourne Properties Limited
Contact:       Craig Hutchison
  Chief Executive Officer
  Tel (011) 889 8500

 
For further information contact:
  Corporate Communications Consultants (Pty) Ltd
  Contact:  Rosemary Renton
  Tel:  (011) 783 8926 or 082 491 0364