Putprop Limited has announced robust financial results for the six months ending December 2023. The company reported a significant increase in operating profit and earnings per share (EPS), reflecting its resilience amidst a challenging economic environment.
According to the unaudited condensed interim results, Putprop recorded an operating profit of R38.282 million, up from R34.391 million in the same period last year. Similarly, EPS saw a notable surge to 21.91 cents, compared to 18.22 cents in December 2022.
Tenant Retention and Portfolio Strength
Despite facing headwinds in the South African property market, Putprop managed to retain an impressive 92% of its tenants whose leases expired during the review period. This retention rate marks a significant improvement from the previous period and underscores the strength of Putprop’s portfolio.
Moreover, the company saw an increase in the percentage of A Grade Tenants, reaching 63% by June 2023, compared to 52% in the previous period. This growth in high-quality tenants demonstrates Putprop’s ability to attract and retain tenants of caliber, even in challenging market conditions.
Dividend Declaration
In a move reflecting confidence in its financial performance, Putprop’s board declared an interim gross cash dividend of 6 cents per ordinary share for the six months ending December 2023. This marks an increase from the previous interim dividend of 4.25 cents per share, highlighting the company’s commitment to delivering value to its shareholders.
The dividend is payable to shareholders recorded in the company’s register as of Thursday, 28 March 2024. Shareholders exempt from paying Dividend Withholding Tax (DWT) will receive a gross dividend of 6 cents per share, while those liable for DWT will receive a net dividend of 4.8 cents per share.
Conclusion
Despite operating in a challenging economic environment, Putprop Limited has demonstrated resilience and strength in its financial performance. The company’s ability to increase operating profit, retain tenants, and declare an enhanced dividend reflects its sound business strategy and management expertise. As it navigates the uncertainties of the property market, Putprop remains focused on delivering value to its shareholders and maintaining its position as a leading property investment company in South Africa.
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