PNS Panther Securities Plc

 
TIDMPNS 
 
16 November 2012 
 
                            Panther Securities PLC 
 
                            ("Panther" or "Group") 
 
Interim management statement for the three month period ended 30 September 2012 
 
Panther is pleased to publish its Interim Management Statement for the three 
month period ended 30 September 2012. The results for the six months ended 30 
June 2012 were announced on 28 August 2012. 
 
The main highlights of the period have been: 
 
  * Towards the end of July 2012 the Group disposed of a factory ground rent in 
    Newton Abbot to the occupying tenant for GBP300,000 this resulted in a GBP 
    100,000 profit. This was a freehold ground rent investment only producing GBP 
    375 income per annum. 
 
  * The Group has recently completed the letting of 4,000 sq ft at 49-61 High 
    Street Croydon to Sainsbury's Supermarkets Limited for 15 years from 24 
    July 2012 at a rent of GBP55,700 per annum. The remaining ground floor space 
    of 3,000 sq ft should be significantly easier to let with Sainsbury's in 
    occupation. The upper part of the parade has recently received planning 
    permission for seven large flats. 
 
  * In August 2012 the Group purchased a freehold vacant double shop unit in 
    Scunthorpe for GBP247,500 (excluding stamp duty). This property is situated 
    in a prime corner position in the High Street, half the unit is under offer 
    to let to a household name tenant and when fully let we anticipate a high 
    return and an increased capital value. 
 
  * Towards the end of the period the Group purchased the freehold of 26 Darley 
    Street, Bradford for GBP475,000 (excluding stamp duty). This unit (1,900 sq 
    ft ground floor sales and a total of 7,700 sq ft) is let to Textiles Direct 
    Limited at a rent of GBP35,000 per annum and is located in a prime location 
    in Bradford adjoining M&S and gives us enhanced synergies on management 
    being next to an existing large investment block. 
 
  * There has been an increase in our financial derivatives combined liability 
    by GBP1.6 million to GBP21.8 million as at 28 September 2012. This has worsened 
    slightly compared to the combined liability of GBP20.2 million as at 31 June 
    2012. 
 
Significant transactions post period end: 
 
  * In October 2012 the Group exchanged contracts to purchase 14-21 Williamson 
    Street, Liverpool for GBP1,060,000 (excluding stamp duty). This is a long 
    leasehold investment at a fixed nominal ground rent. The property is 
    located in a prime central pedestrianised retail district of Liverpool. The 
    current rental income is GBP214,250 from the two retail tenants. 
 
  * Also in October 2012 the Group exchanged contracts to purchase a feuhold 
    (Scottish equivalent of freehold) office and industrial 2.25 acres site, 
    with 8 tenancies, a number of buildings and 88 parking spaces for GBP485,000 
    (excluding stamp duty) with income of GBP271,000 per annum. This high return 
    is due to the fact that there are 6 leases due to expire by March 2013, but 
    the Group has taken the view and hope that it can negotiate lease 
    extensions with enough of these tenants to provide a decent return (or find 
    suitable replacements). 
 
  * The Group has exchanged contracts to purchase in November 2012 the long 
    leasehold interest of 18-80 & 104-106 Main Street, Coatbridge for GBP5.5 
    million. The two neighbouring well located and prominent parades are key 
    retail hubs within Coatbridge, near Glasgow. Together the parades provide 
    88,000 sq ft across 42 retail units and current tenants include, 
    Specsavers, Boots, Co-op Travel, Superdrug, Phones 4U and The Royal Bank of 
    Scotland. The parade currently produces a gross income of approximately GBP 
    1,150,000 per annum with ground rent payable as a proportion of rents 
    collected our initial net income after all costs will be approximately GBP 
    730,000. This investment offers strong returns as well as opportunities for 
    asset management through letting of vacant units and further development. 
 
  * Panther has also agreed terms and has instructed solicitors for the 
    freehold property of a multi-let high street retail parade investment for 
    circa GBP4 million. The property comprises of 16 retail units and vacant 
    offices. 90% of the total current rental income of GBP770,000 per annum is 
    secured against national multiples. This scheme offers excellent 
    opportunities for long term income, value enhancement and potential longer 
    term redevelopment. 
 
General trading update 
 
With financing in place the Group has continued to invest substantially during 
the period and after. The funds left to invest following the purchases and if 
the proposed above acquisitions complete will be almost fully utilised, other 
than GBP2 million. However, the management team have numerous opportunities to 
improve income and value with all the recent purchases and across our existing 
portfolio. 
 
We are still seeing significant value in properties currently on the market and 
we may consider raising new finance via bank loans or possibly issue of bonds, 
or disposing of some of our properties where we can obtain good prices from 
special purchasers. 
 
As ever we remain upbeat about Panther's future prospects. 
 
Other than as stated above, there has been no significant change in the Group's 
financial position since 30 June 2012. 
 
Andrew Perloff 
Chairman 
 
For further information contact: 
 
Panther Securities PLC 01707 667 300 
Andrew Perloff - Chairman 
Simon Peters - Finance Director 
 
 
 
END 
 

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