Our opinion on the current state of PUTPROP(PPR)Putprop (PPR) is a property company that was spun out of Putco (the bus company) and separately listed on the JSE in July 1988. The company owns 16 properties in the industrial, retail, and office sectors, with a gross lettable area (GLA) of 97,601 square meters and a total value of R1,095 million.
In its results for the year to 30th June 2024, the company reported rentals and recoveries of R140,3 million compared with R128,4 million in the previous period. Headline earnings per share (HEPS) was 46,54c compared with 93,22c in the previous period. The company's loan-to-value (LTV) was 36,9%, and its net asset value (NAV) was 1,668c per share.
The company said, "The property currently has a vacancy of 274m². Rentals per m² continue to be substantially below pre-COVID rates. However, there appears to be a slight increase in demand for office space, which should translate into higher future rates."
In a trading statement for the six months to 31st December 2024, the company estimated that HEPS would increase by between 16,7% and 36,7%.
From a private investor's perspective, the main problem with this share is that it is very thinly traded, with many days on which there are no trades at all. It is clearly not a share that institutional investors are interested in. We believe that there are better counters in the property sector.
