Property loan stock group Pangbourne Properties has reported on Thursday that its total distribution for the year to end June was 147.08 cents per linked unit, which is an increase of 10.05% over the 133.65 cents per linked unit distribution in 2009.

Diluted headline earnings per linked unit for the year ended June 2010 increased to 133.13 cents from 62.46 cent a year earlier.

Profit for the year for the year attributable to equity holders was R360.7 million against a loss of R195.7 million reported in the previous comparable period.

Rental revenue grew to R1.46 billion from R1.293 billion a year earlier.

The property group said its growth was attributed to operational efficiencies, an emphasis on tenant retention and firm control of arrears and bad debts.

It said competition for tenants resulted in reduced rentals in certain areas.

Of further fundamental concern to the group is the state of many of the local authorities in areas where Pangbourne's properties are located.

"Many of these authorities are no longer reading utility meters, which has increased Pangbourne's operating costs and resulted in capital expenditure on installing meters that can be read and managed remotely," said the company.

"Rates and utility expenses have also increased sharply with no concomitant improvement in service delivery.

"These increases are affecting net rentals achievable by all property owners," the group said.

However, it said while the board expects macroeconomic conditions to remain difficult for the 2011 financial year, the board is confident that Pangbourne will achieve growth in distributions of between 6% and 8%.