, which listed on the JSE’s AltX board last October, exceeded its prelisting forecasts in its maiden annual results.
The group — which is building the 15 on Orange hotel, retail and residential property in Cape Town and holds a stake in the Sandton Eye retail, office, hotel and residential development — yesterday posted earnings per share of 272c for the year to August, against its prelisting forecast of 254c.
This followed a R508,6m upward revaluation of 15 on Orange, which also boosted net asset value to 288c per share. The headline loss of 7c was lower than the 8,5c originally forecast.
Quantum issued shares at 180c to selected investors ahead of its listing. The shares were trading at 177c yesterday.
In its prelisting statement, Quantum projected a headline profit of 14,4c per share in the 12 months to August next year, on the basis of rentals from 15 on Orange’s hotel, retail centre and parking, as well as 50% of gross revenue from the hotel.
Although 15 on Orange was originally due for completion in June, CEO Gary Itzikowitz said yesterday that it would open in about 20 days’ time.
The delay was because “we made it a better product”. Asked whether this had raised the cost of development from the original R371m, he said the cost had increased, but not significantly.
All 12 penthouses had been sold and the retail space was almost fully tenanted, with talks under way with an international company for a prime site.
Itzikowitz said the industrial, commercial and leisure property sectors in SA were challenged during the year but were showing early signs of recovery.
Management was looking at developing future projects of similar quality to 15 on Orange. He said fundraising would be difficult in the current environment.
Quantum’s management team had good relationships with the banks, and a record of developing properties even in harsh economic conditions, he said.
It had reinforced its capital- raising expertise with the appointment of former property division director Johann Opperman to its board.
For the right projects, Quantum would consider issuing shares to bring in new shareholders as well as using bank financing.
mathewsc@bdfm.co.za