Business / Companies
Pearl Properties Limited - Interim Results to 30 June 2011
17 Aug 2011 at 03:52hrs | Views
A satisfactory set of interims from Pearl, as management reported that the company is still in line to achieve a rental income target of $9 million and a targeted yield of 10% for FY 2011, driven by improving rental reviews. Rental income for the half year amounted to $3.8 million, up 16.3% from the prior period. Investment income came in at $972,206 up from $878,630, bringing the total income to $4.9 million. Administration expenses at $2.1 million (H1 2010: $878,630) were mainly driven by higher provisioning for credit loss at $380,334 (H1 2010: $17,693), higher office costs at $317,787 from $132,012 and staff costs which grew by 87.5% to $792,708. The operating profit thus totalled $2.8 million. A $364,614 fair value adjustment loss however lowered the PBT to $2.5 million; $242,428 of the fair value adjustment was from investment properties, whilst the difference came through from quoted shares. The attributable profit for the interim amounted to $2.1 million.
Total assets grew by 17.1% to $95.4 million, whilst an addition of $0.6 million was made to the investment properties after the group acquired 53,375m2 of land in Borrowdale. The total value of investment properties thus totalled $88 million. The cashflow position remained strong, with $1.2 million generated from operations.
The rental per m2 moved up from $4.71 to $6.31 and we expect rentals to continue the steady upward trend. Collections averaged 77.6% up from 74.7%, whilst void levels moved up from 10.2% to 17.2% due to the refurbishment of George Square. CBD Offices continue to dominate in terms of rental income contribution and also in terms of rental yields. Civil works at the Kamfinsa cluster housing project were completed in August and construction should commerce in October 2011. The George Square project should be complete by November 2011, and a tenant has already been acquired. We like Pearl, in view of its diversified and significant portfolio base. Ratings are undemanding. Nontando Zunga of Imara Stockbrokers recommended a BUY to the stock.
Total assets grew by 17.1% to $95.4 million, whilst an addition of $0.6 million was made to the investment properties after the group acquired 53,375m2 of land in Borrowdale. The total value of investment properties thus totalled $88 million. The cashflow position remained strong, with $1.2 million generated from operations.
The rental per m2 moved up from $4.71 to $6.31 and we expect rentals to continue the steady upward trend. Collections averaged 77.6% up from 74.7%, whilst void levels moved up from 10.2% to 17.2% due to the refurbishment of George Square. CBD Offices continue to dominate in terms of rental income contribution and also in terms of rental yields. Civil works at the Kamfinsa cluster housing project were completed in August and construction should commerce in October 2011. The George Square project should be complete by November 2011, and a tenant has already been acquired. We like Pearl, in view of its diversified and significant portfolio base. Ratings are undemanding. Nontando Zunga of Imara Stockbrokers recommended a BUY to the stock.
Source - Imara Stockbrokers
