An energetic approach to letting, investments made in the growing central business districts of Johannesburg and Pretoria, and the redevelopment of properties are paying dividends for JSE-listed Premium Properties.
Despite tough trading, Premium managed a 13,3% growth in distributions to 51,90c for the six months to August.
Rental income and net rental income increased 19,7% and 13,4% respectively.
But property expenses jumped to 41,7% of rental income, largely due to municipal costs and maintenance costs.
A major contributor to growth had been its residential and office properties, Premium said last week. The residential portfolio of 3090 units delivered more than 10% growth in rental income. This was underpinned by low vacancies and good demand for affordable, secure accommodation.
Premium said the distribution growth was helped by improved occupancy levels in the Hatfield development. Phase 1 of the mixed-use development, with 694 residential units and 5224m² of rental space, was almost fully let.
Earnings per share dropped 3,8%, to 60,6c from 63,0c, but headline earnings per share climbed to 0,4c from a loss of 0,1c. The company declared a 0,26c dividend from 0,23c previously.
Premium said it continued to focus on acquiring and redeveloping properties in the Pretoria and Johannesburg CBDs.
