This brings the total distribution for the 10 months from 1 July 2003 to 30 April 2004 to 9,71 cents per unit. Distributions will be paid on 19 July 2004.
Prima's net profit after tax and fair value adjustment for the 10 months ended 30 April 2004 amounted to R62,35 million. This represents a 187% increase from R21,74 million as at 30 June 2003.
During the period under review, Prima obtained finance of R139,1 million, which attracts interest at a rate of prime less 1.5% per annum. The interest rate on R100 million of the finance was fixed at 11.72% per annum for two years, effective from 1 October 2004.
Prima's assets under management grew from R123 million to R510 million following a fair value adjustment to the property portfolio of R34,4 million. Prima's property portfolio was enlarged following the acquisition of 53 properties which were transferred in January 2004, thereby bringing the total number of properties in the portfolio to 61, from eight.
"This is in line with Prima's new investment strategy which includes growing our portfolio to in excess of R1 billion through the purchase of A and B grade properties offering yields of upwards of 13,5% and having capital values between R2 million and R15 million," said Prima Property Trust CEO Steven Jersky.
Prima's growth is already continuing into the current financial year with the simultaneous announcement that Prima intends to purchase a portfolio of properties for R165,5 million from the Ellerine Bros (Proprietary) Limited group, amongst other imminent acquisitions.
This portfolio consists primarily of retail properties with blue-chip tenants and offers a 14% return. The acquisition of this portfolio, which is still subject to various conditions, will also improve Prima's lease expiry profile.
Prima's investment properties consist predominantly of retail space (45%) with industrial property (31%) and commercial property (24%) diversifying the portfolio. While the portfolio is spread nationally, the majority of buildings are located in Gauteng (47%), with Mpumalanga (32%) also strongly represented.
"Prima will continue to grow its portfolio and extract value from existing properties with its specialised two-tier property management model," said Jersky. He added that continued diversification and risk reduction are also strategic priorities for Prima.
For further information please contact:
Prima Property Trust
Steven Jersky
+27 11 283 0000
cel 083 604 0224
or
Marketing Concepts
Sandy Davey
+27 11 880 2213
cel 083 453 6668
24 June 2004
