Putprop Limited is a property investment company with a history of investing in industrial, commercial and retail properties, deriving contracted rental income from a portfolio of 16 properties in South Africa valued at R469 million.

Most of the group’s properties are situated in Gauteng, with one in the North West and one in Mpumalanga. Around 90% of the properties are industrial. The properties cumulatively hold over 75 000 m2 of Gross Lettable Area (GLA). Major tenants include the Laminar Group, Burger King, Sportsmans Warehouse, Standard Bank and Liberty.

Putprop shares have been listed on the Johannesburg Stock Exchange (JSE) since 1988, and today have a market cap of R247 million. Putprop share price has not performed up to expectations on the bourse.

Putprop’s main objective is to conservatively build a quality portfolio with strong contractual cash flows in order to secure long-term sustainability and capital appreciation. This revolves around strategic investments where yields are enhancing in the medium to long-term.

The group has had a subdued performance over the past few years, with the stocks chart illustrating struggles in maintaining Putprop share price and delivering returns for investors who buy into the company. Net profit before tax significantly declined in 2016, from R77 million to R40 million, with dividends decreasing from 26 cents to 17 cents. Results were impacted by high operating costs, losses from associate companies and finance costs on the purchase of Secunda Value Mart. After tax, profit decreased by 67.2% to R21.1 million, largely as a result of increased capital gains tax from the sale of the Selby property.

The group did successfully buy the 49% remaining minority holding in NeoTrend Khala Cose Developers, making this a fully-owned subsidiary with large tenants forecast to add to income streams.

Other potential acquisitions were pursued in order to diversify the portfolio into commercial and retail properties and reduce the risk of over-dependence on major tenant Larimar, but these processes stalled when the group attempted to delist from the JSE. The delisting was unsuccessful, and the board is assessing new strategies to move the company forward, including putting underperforming assets up for sale. Results were further affected by the difficult economic climate and Larimer deciding not to renew leases on several properties tenanted by them.

Putprop has not delivered the expected returns to investors, and the live online JSE stocks chart shows that Putprop share price has declined from around R9 in 2015 to
R5.50 by October 2016. The controversy surrounding the failed delisting further eroded the confidence of investors to buy Putprop shares. Putprop is currently a company in a state of significant flux, making the shares a risky buy. Investors will understandably view other property stocks as a much safer bet.

Financials

Real Estate

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Putprop Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Putprop Holdings and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Putprop.
4. Click the “ INVEST NOW” button
5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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