Property loan stock company ApexHi on Wednesday announced that its combined distributions for the six months ended December 2008 had increased by 11%.

Distributions per A and B unit were unchanged at 67.5c and 82.5c respectively but distributions per C unit were up 189% to 24.7c from 8.5c the previous year.

The group said that disposals were at R5.6-million, down from the R46.5-million recorded for the previous year.

Net operating income for the six months was up 8% to R485.712-million from the R450.688-million for the corresponding period in 2007.

Property expenses increased by 15% to R139.429-million from the R121-million reported the previous year.

Group profit from operations were up 2% to R477.1-million from the previous R469.1-million.

The group said at June 2008, distribution growth of between 8% and 13% was projected for the 12 months ending June 30 2009.

"Taking account of a slowdown in net rental growth in the core portfolio and reduced return on the residential portfolio, growth in distributions for the full year should be 10%," the group said.

It added that the distribution structure would change when the 93.75c quarterly threshold was reached.

"Based on the above, the threshold is anticipated to be reached in the fourth quarter of the 2009 financial year, when the A, B and C units will share in the growth in distributions," added ApexHi.

The A units will receive 36%, the B units 44% and the C units 20% of the total quarterly distribution.