Martprop's gearing encourages growth.

Posted On Monday, 03 March 2003 10:01 Published by eProp Commercial Property News
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Property unit trust Martprop concluded the six-month period ended January with a gearing of only 6,7% which leaves the window for further geared growth wide open for the group.

Property-Housing-ResidentialMartprop is taking advantage of the new regulations which allow property unit trusts to gear their assets to a maximum level of 30%. Property unit trusts were previously barred from gearing.

The group concluded its first debt-backed acquisition in December, raising its borrowings to R82,7m. This debt translated to 6,7% gearing.

For the six-month period to end January, the group raised its distribution 6,2% to 12c a unit, compared to 11,3c in the previous comparable period.

Interim headline earnings came in 8,3% higher at 11,9c from 11c and revenue increased 4,3% to R91,2m from R88,1m.

A setback was the downward revaluation of the group's portfolio by R28,4m or 2,1%.

The group attributed this to high interest rates and weaker market conditions.

It said that the period under review continued to reflect the company's strategy of selling noncore assets.

It sold 10 properties for a total consideration of R27,8m.

Acquisitions concluded during the first six months have been focused on prime warehousing facilities and retail properties.

The value of these acquisitions totalled R109m. Management said that it was confident that total distribution for the year to the end of July would reflect modest growth compared to the previous year.

Recent acquisitions, together with opportunities currently under consideration, would contribute to this growth in the medium to long term, the group said.

With the anticipated decline in interest rates, unitholders should expect to benefit from both capital appreciation as well as the growth in earnings, the company said.

Martprop unit price closed unchanged at 200c on the JSE Securities Exchange SA on Friday.

Last modified on Thursday, 08 May 2014 17:44

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