Pangbourne has the advantage of a relatively low level of borrowing 28,2% of
its income-earning assets at the end of June, only slightly up from 25,3% a
year earlier. The group has a self-imposed borrowing limit of 40% of
incoming-earning assets, so gearing up to the hilt would allow it to buy
properties worth about R300m.

CEO Athol Campbell has indicated the intention is to continue growing the
portfolio with a focus on industrial properties, a market that experienced
something of a turnaround during the first six months of the year.
That trend is expected to continue in the second half, which augurs well for
all property loan stock companies and Pangbourne in particular.