Jul 2007 Financial News

PPMF Releases Half Year Results

Jul 05, 2007

Results for the Half Year Ended March 31, 2007

For the Half Year Ended March 31, 2007, Praetorian Property Mutual Fund (PPMF) reported a Net Asset Value (NAV) of $6.02, which was 3.22 per cent lower than the September 30, 2006 NAV of $6.22. However, during the Half Year Ended March 31, 2007, the trustees of PPMF paid a dividend to unit holders as at January 13, 2007 of 33 cents, representing a 10 per cent increase over the previous year. Thus, if the NAV as at September 30, 2006 is adjusted for the proposed distribution, the NAV for HY07 would be up 2.26 per cent on the adjusted NAV of $5.89.

The Fund’s Total Assets decreased by 3.22 per cent from $257.08 million as at September 30, 2006 to $248.80 million in the period under review. For the Half Year Investment Properties stood at $145.02 million, up 7.03 per cent on the figure for FY06. Rental Income Receivable saw the largest increase moving from $8.74 million as at September 30, 2006 to $11.48 million in the period under review, an increase of 31.30 per cent. PPMF’s holdings in Mutual Funds fell a significant 20.37 per cent to $78.90 million and as at March 31, 2007 represented 31.71 cent of the fund’s portfolio of assets.

The Accumulated Surplus for the Half Year stood at $40.93 million which brought the Total Fund Value to $240.93 million.

Total Income for the half year under review amounted to $9.93 million, up 7.78 per cent on the comparable figure of $9.21 million for HY06. The main income driver was Rental Income which increased 10.21 per cent to $5.76 million and contributed 58.05 per cent to the Total Income. While Net Realised and Unrealised Exchange Gains saw the largest increase of 122.52 per cent, moving from $0.33 million in HY06 to $0.72 million in HY07.

Total Expenses ended the period at $4.67 million, up a marginal 3.25 per cent from $4.52 million in the corresponding period of HY06. Fees, Commissions and Service Charges made up 98.42 per cent of Total Expenses to end the period at $4.59 million, up 5.87 per cent on the comparable figure for HY06.

Net Investment Income Before Taxation stood at $5.26 million, up 12.14 per cent or $0.57 million on the same period in the last financial year. The Effective Tax Rate for the period under review was 0.37 per cent compared to a tax rate of 0.58 per cent for the Half Year Ended March 31, 2006. Thus, Net Investment Income After Taxation was $5.24 million, up 12.38 per cent on the same figure for FY06.

PPMF last closed at a price of $5.00 on the local exchange and is therefore trading at a discount of 20.40 per cent to the NAV as at March 31, 2007.

Gia Singh
WISE Equity Research Team