Putprop is a property investment company listed on the main board of the JSE under the real estate sector. Listed on 4 July 1988. (JSE code: PPR) (Registration number: 1988/001085/06). Invests in industrial, commercial and retail properties, deriving its income from contracted rentals.
Putprop’s primary objective is to build a quality portfolio with strong contractual cash flows resulting in long-term sustainability and capital appreciation.
Growth will come from strategic investments, focused on industrial, retail and commercial opportunities where yields are enhancing in the medium- and long-term.In addition, “Greenfield” development opportunities will be considered with suitable Joint Venture partners in order to increase portfolio values and unlock future value for shareholders.
In the pursuit of the Group’s strategy and objectives,our CORE values determine our every action.
Optimise short-term and long-term returns for shareholders.
We continue to provide long-term sustainability in the current challenging market.
Dividend pay-out maintained.
Strategy delivered.
Continue to reduce
over-dependence of contractual rental inflow on one single tenant to a level of 30% or less.
Income from single tenant of 34% of total contractual rentals.
Strategy not delivered but on course to deliver in 2022 with inclusion of Summit Place.
Optimise the asset quality of our portfolio by continually reviewing and disposing of non-performing and low grade properties.
Three non-core properties were identified and actively marketed during current financial period. The continued effects of the Covid-19 pandemic has made sale of these assets at acceptable prices to management more challenging in the current volatile property market. Disposal of one property realised.
Strategy not delivered, but focus to dispose remains.
Grow the asset value of the portfolio in the medium-term to over 1 billion South African Rands.
The Group portfolio with the inclusion of Summit Place (Pilot Peridot) from 1 June 2021 is now valued at R1.03 billion.
Strategy delivered.
Improve our tenant focus with interactions with this group of stakeholders on a regular basis.
Frequent and ongoing contact held with all tenants during the year in an effort to understand the effects of Covid-19 on their combined sustainability. Identification of assistance with a strategy of maintaining sustainability and profability of tenant base. We continue in our efforts to maintain a strong tenant network. Early interactions to try to identify risks.
Strategy delivered.
Consolidation and rationalisation of existing property portfolio investments with the purpose of adding value to these assets where possible. Increase in economic interests to be added to, when opportunities arise and where managements' parameters are met.
Existing investments in associated companies reviewed for further expansion opportunities. Pilot Peridot consolidated into Group's results. All assets reviewed in portfolio to ensure strategy fit still relevant and balanced. Acquisition of 22 Impala Road (new head office of the Group), together with a tenant structure. Possible target properties and “Fire sales” may become prevalent due to economic and social effect of Covid-19. This may provide buying opportunities in 2022. Sectoral spread considered satisfactory for year.
Strategy delivered.
Loan to value mandate increased from 35% to 42% in order to accomodate Pilot Peridot as a subsidiary of the Group.
Gearing during the year was maintained below our mandated level of 42% of total assets.
Strategy delivered.
The possibility of increasing the Groups shareholding in Pilot Peridot (Summit Place) to 100%
Discussions are at present in progress with shareholders in respect of potential acquisition of minority interest.
Strategy in progress.
To explore opportunities for acquiring investment holdings in other listed REIT’s on the Johannesburg Stock Exchange.
The current Covid-19 pandemic and its effect on the listed property market has resulted in this strategy being suspended.
Strategy not delivered.
To Maintain vacancies below a target level of 6% of our gross lettable area.
Vacancies decreased substantially in this period to 2.3% (2020: 16.3%).
Strategy delivered.
Examine all areas of operational efficiencies.
Detailed review of corporate and property operations in period. Improvements and cost savings achieved.
Strategy delivered.
Lease expiry profile that reflects a minimum of 66% future contractual rental income flows greater than three years.
Future contractual rental streams greater than two years of 80%.
Strategy delivered.
The construction of the Mamelodi Retail centre to commence in July 2021.
The Dobsonville retail centre construction date was postponed until early 2022.
Mamelodi Square construction commenced in July 2021 after a considerable delay due to the Covid-19 pandemic. Estimated opening date date is October 2022.
Strategy delivered.
Specific targeting of rural food retailers for acquisition.
No suitable food retailers identified in the current period.
Strategy not delivered.
First property purchased by Albino Carleo the founder of Putco Bus Services.
Putco Properties Limited listed on the Johannesburg Stock Exchange with 21 properties acquired from Putco Bus Services, with a focus on the industrial property sector. The initial portfolio asset base was R101 million with a market capitalisation of R18,5 million and net income of R1.1 Million. The company had no gearing.
Property portfolio exceeds R150 Million, with a 100% industrial properties holding.
Record dividend distribution paid to shareholders of 100 cents per share.
Group changes strategy to diversify its portfolio into the retail and commercial sectors. Rationalisation of property portfolio with disposal of non-core properties.
Group name change from Putco Properties to Putprop Limited in order to distinguish itself from Putco Bus Services and establish a property focused brand.
First development undertaken with a joint venture into two retail centres in the Centurion area.
Diversification of portfolio with first retail properties acquired Putprop is recognised by the JSE Limited for 21 years on the main Board of the Johannesburg Stock Exchange. The Group pays out Dividend distributions for the twenty first consecutive year.
Ranked 74th in Financial Mails Top 200 Listed companies. Acqured a 25% holding in Summit Place A 60 000M2 mixed use retail and commercial development in Centurion, Tshwane.
Phase 1 of Summit place fully tenanted. Property portfolio exceeds R325 million. Record net profit of R71 million with major contributions from our investment in Associates.
Phase 1 of Summit place fully tenanted. Property portfolio exceeds R325 million. Record net profit of R71 million with major contributions from our investment in Associates.
Secunda Value Mart - The acquisition of the 49% holding not already owned by the Group in Secunda Value Mart, situated in Secunda was also finalised in this period. This is a retail center development of 6 272m2 GLA with Builders Warehouse and Burger King as anchor tenants. Leases of 10 years have been concluded. Rental income has come on stream with effect from December 2015.
Corridor Hill - Our interest in associate investment opportunities was increased during the current year, with an additional 20% investment being concluded in Corridor Hill, a development in Witbank. The Group had already acquired an 80% holding in a 50% undivided share in 2015, partnering with the Bidvest Group. The investment has a Volkswagen dealership as a tenant, with a 10 year head lease. The dealership opened in 2016.
Mamelodi Square construction commenced in July 2021
Mamelodi Square Grand Opening on 27 October
Strategic disposal of non-core assets begins to release capital for reduction in loan finance and focused asset acquisitions.
From 1 October 2017, all JSE listed companies were required to issue annual reports and circulars that apply the provisions of King IV. Putprop has accordingly benchmarked our governance practices against these principles. The below register sets out Putprop's compliance with King IV.
Read Our King IV Application hereSocial and Community Initiatives | Environmental |
| Occupational Health and Safety Act | Covid-19 Add On’s |
|. Energy Efficient Initiatives |
