Adrenna warns of lower earnings

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Adrenna warns of lower earnings

Published Date: 2019-06-12 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Adrenna warns of lower earnings

The property group will report a headline loss per share but its tangible net asset value has improved.

Adrenna Property Group has prepared shareholders for a full-year headline loss when it releases its 2019 results next week.

In a trading statement, the Western Cape-focused property investor said it would report a headline loss per share of between 0.07c and 0.79c for the year to end-February, down from headline earnings per share (EPS) of 7.2c in 2017. Basic EPS would decline by as much as 98% to 0.6c, from 28c previously.

Its tangible net asset value (NAV) per share is expected to rise marginally to between 290.6c and 292.9c. Last year, its NAV was 290c per share.

The group gave no additional detail but its interim results were impacted by the amount of money it spent on repairs and maintenance at Consani Industrial Park following flood damage to the Elsies River property as well as a number of other extraneous expenses, including bad debts, land legal and settlement costs. Its Somerset Malls Development subsidiary also expended funds of about R1 million to finalise plans and obtain rights for a luxury apartment development on property it owns in Hout Bay. Despite the significant expenses incurred, it continued to trade in a cash positive position in the first half of its financial year.

It plans to release its results on or about 18 June.

The group's shares didn't trade yesterday, closing unchanged at 90c. The trading statement was released after the market close.





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