The net asset value of South African Property Opportunities (SAPO) fell from 69p to 37p per share over the year to end June 2014 (somewhat ancient history now). 19p of the fall was accounted for by a distribution they made to shareholders, 10p relates to a fall in the value of the South African Rand relative to Sterling, running costs accounted for a further 2p and just 1p is a fall in the value of the portfolio.
The company’s bank debt has been eliminated and, this October, the company has made a further distribution of 5p per share. They still have about £3.2m in cash (having sold £2.3m worth of property since the end of June). Most of what they have left to sell is development sites. Unfortunately these are not much in demand right now – they say development activity in the country is as low as it was in 2005 (though they are still worried that too much speculative office space is being built).
SAPO hit by falling Rand