Our opinion on the current state of PPR

Putprop (PPR) is a property company which was spun out of Putco (the bus company) and separately listed on the JSE in July 1988. The company owns 16 properties in industrial, retail and office with a gross lettable area (GLA) of 98484 square meters and a value of R1056,4m. In its results for the year to 30th June 2023 the company reported headline earnings per share (HEPS) of 93,98c compared with 87,96c in the previous year. The company's net asset value (NAV) increased slightly to 1612c per share. The company's vacancy rate was 10% and its loan-to-value (LTV) was 41,6%. The company said, "The portfolio currently comprises of 13 (2022: 15) strategically located properties, located primarily in Gauteng geographic area. The total Gross Lettable Area (“GLA”) of the invested properties is 97 601m² with a value of R1 095 585 million". 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 the institutional investors are interested in. We believe that there are better counters in the property sector.