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Chairman’s Report
Chairman’s statement
On behalf of the board of directors, I am pleased to present the
Trust for Urban Housing Finance (TUHF) 2009 Annual Report.
Performance overview
“… our competitive position as a distinctive,
commercial, property finance company remains
strong.”
In spite of a challenging economic and competitive environment,
2008 proved to be a year of significant achievement. While we
are headed for increasingly challenging times in terms of the
conditions affecting our economy and that of the international
arena, our competitive position as a distinctive, commercial,
property finance company remains strong.
In the fiscal year under review the group loan book grew from
R375.5 million to R606.4 million in advances (a growth of 61%)
while operating profit, after the restatement of accounts,
decreased from R849 221 to R468 963. This margin decrease
was a result of a significant increase in the TUHF loan loss
reserve (increase to 2.3%), and a substantial investment in
internal capacity, particularly the MIS platform. Consequently, by
leveraging internal capacity, TUHF is poised to reap the benefit of
substantial economies of scale.
A shared vision
“Powered by an urban regeneration model that
works … we have become the market leader in
our sector.”
TUHF was pioneered by several leading South African based
development organizations dedicated to providing effective, cost-
efficient solutions to the inner city improvement challenge. Since
our inception in 2003 our business continues to help individuals
who understand, and believe in the business potential of inner
city rejuvenation, to become profitable property entrepreneurs.
Our policy of assisting local residents to become hands-on
property owners in their own neighbourhoods is actively changing
ownership demographics. Historically, the majority of inner city
property owners were predominantly white, often absentee
landlords, with black tenants mostly from working or middle class
backgrounds. By contrast, the majority of our property owners
and landlords come from previously disadvantaged groups.
Powered by an urban regeneration model that works we have
become the market leader in our sector. Inner city dwellers now
recognize the TUHF logo on our refurbished buildings as the
brand to trust for property financing in their areas – proving that
we best understand the market we serve.
Making a difference
“… not just to develop but to improve inner city
communities.”
Although we are an independent finance company, we retain vital
links with the financial services sector. We are a participant in (and
provide complimentary investment to) Johannesburg City and
JDA led development programs. As an affiliate of POMA (Property
Owners and Management Association – an association of landlords),
JICBC (Johannesburg Inner City Business Coalition), NASHO
(National Association of Social Housing Organisations) among
others, we take seriously our responsibility as a “community
bank” seeking to not just develop but to improve inner city
communities. By remaining true to our founding mandate, we
are committed to making markets work for property enterprise
in South Africa, to effect local economic development in all its
forms.
Acknowledgements
“… the combined effort of all stakeholders …
drives TUHF’s increasingly impressive track
record of viable and sustainable inner city
development.”
A collaborative approach, the combined effort of all stakeholders,
in no small part drives TUHF’s increasingly impressive track
record of viable and sustainable inner city development.
For their continued commitment to TUHF’s development
initiatives in helping us to achieve our goals, I wish to express
our appreciation to our principal sponsor, the National Housing
Finance Corporation (NHFC), and other major investors namely
Future Growth, Standard Bank, and the Development Bank of
Southern Africa (DBSA).
Moreover, I would like to extend my appreciation to our customers,
our dedicated and talented staff, my fellow board members for
their hard work, invaluable insights, and untiring support. in
particular, I wish to thank Paul Jackson, our chief executive officer
(CEO) for his outstanding leadership.
Mr Taffy Adler has resigned from the board of directors to take up
the position of CEO at the Housing Development Agency (HDA).
On behalf of the board, I would like to express my gratitude for
his exceptional contribution since TUHF’s inception. We wish him
every success in his new role.
Looking ahead
“… TUHF is favourably positioned for considerable
growth in the coming year.”
Our core brand is synonymous with the ‘rejuvenation of
Johannesburg’ but, based on the success of our inner city
development projects in Johannesburg and the broader Gauteng
Province, we are confident that our model is transferable to
derelict inner city areas throughout South Africa. From humble
beginnings, where we formerly concentrated on “red-lined”
areas in Johannesburg only, our regeneration model could soon
become the prototype of a “National Urban Regeneration Fund”.
In spite of the uncertain economic outlook, TUHF is favourably
positioned for considerable growth in the coming year. To this
end, we intend to reinforce our competitive advantage, to
implement a strong brand strategy to leverage our position
further, and to keep generating value for all our stakeholders.
Our clients, our people and our funding partners are the decisive
factors by which we measure our performance, and I look forward
to meeting the challenges of 2010 together.
Yours sincerely
TUHF CHAIRMAN
Samson Moraba Please download the Annual Report below. You will need winzip to open .zip files and Adobe Acrobat Reader to view them.
2005 Annual Report (4.27MB)
2006 Annual Report (15,7MB)
2007 Annual Report (2,91MB)
2008 Annual Report (39MB)
2009 Annual Report (4.7MB)
Phone our offices on 011 276 1440 to receive the hard copy of the Annual Report.
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