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Putprop reports positive portfolio metrics

Putprop's Secunda Value Mart in Mpumalanga (Source: LinkedIn).

Putprop has declared a dividend of 10.75 cents per ordinary share with a total dividend payable for its financial year ended on the 30th of June 2021 of 15 cents (2020: 14 cents) – growth of 7.1% compared to 2020.

The property investment company, who recently announced a joint venture with McCormick Property Development for the 16 000m2 Mamelodi Square, reported flat revenue of R73.1 million (2020: R73.8 million). Its operating profit increased to R62.5 million (2020: R37.3 million) with profit available for distribution to ordinary shares increasing from R2.9 million to R22.6 million. Headline earnings per share also increased to 71.7 cents (2020: 48.23 cents).

Despite a difficult rental market, the company’s rental operations in its commercial, retail, and industrial assets were up, reporting a rental retention of 94.1% of its tenants whose lease expired during the reporting period with future minimum lease rentals greater than two years increasing by 26% to R155 million. Annual escalation on contractual rental income was maintained at 7.67%.

Its market value per m2 of its property portfolio, currently comprising of 16 assets primarily located in Gauteng, was up by 42% to R10 583 per m2. Putprop’s total Gross Lettable Area (GLA) of its invested properties sits at 99 848m2 with a value of R1 056.4 million.

The acquisition of Summit Place has added R527.8 million to the company’s portfolio.