THABANG MOKOPANELE

Property Editor

PROPERTY company Fairvest aims to create a property portfolio of “significant critical mass” through acquisition of quality, high-yielding properties as part of its short-term investment strategy.

The company, which has investments in commercial and retail properties, said on Friday investment opportunities were continually being evaluated for acquisition.

But the economic meltdown has had an effect on the company’s performance for the six months ended September, with revenue declining 9% to R7,8m from R8,5m. However, if revenue previously derived from Nedbank Circle and Mangrove Beach Centre properties was excluded, revenue improved 11% to R7,8m. Trading profits improved 37% to R2,9m from R2,1m largely as a result of the disposal of the underperforming properties. Headline earnings per linked unit rose to 5,2c from 0,5c previously.

But the company said headline earnings in the comparative period included an expense for provision for interest distributions to debenture holders of 3c per share.

The net asset value per linked unit increased 4% from 146,4c at the end of March to 151,6c at the end of September. The balance sheet of the group remained strong with cash and cash equivalents of R43,5m.

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Source: Business Day