The company said in a statement that it expects that distributable income for the financial year ending September 2003 should be in line with the forecast of 30 cents per unit.
Grayprop managing director John Rainier said that during the period under review a major renovation and refurbishment was completed at the Blue Route Mall in Cape Town.
"We are also in the process of re-tenanting the Northmead Mall in Johannesburg while other projects underway include Centurion Shopping
Centre near Pretoria and Randburg Waterfront in Johannesburg."
Rainier pointed out that over one, three and seven years, the property trust sector is the best performing asset class before tax with total
returns per annum of 42%, 22% and 19% respectively compared to the total returns for the All Share Index of -27%, 3% and 6%.
He added that vacancy rates in decentralised office markets such as Sandton and environs are still at high levels but there are early signs of a turnaround with increased demand.
The high level of vacancies has slowed new building considerably with non-residential building plans passed at their lowest levels in real terms
for the past two decades, he added.
A similar pattern has emerged for plans completed.
"With this in mind and if one looks at historical office rental take up rates, the current oversupply could be filled by mid 2004," he said.
"The result for existing owners is that they can expect a significant rise in office rentals across the board and improved earnings from property
trusts."
Rainier said it was still of concern that real interest rates remain so high as this is likely to impact negatively on the economy.
While property income would be affected by a downward phase in the business cycle, it is often better placed than other sectors because leases are typically long-term contracts that enjoy annual escalations.
On the positive side, a slowing economy will give rise to lower short-term interest rates which, based on past experience should be falling by mid 2003, he said.
Over 17 million rand worth of properties were sold during the period under Review, including Bruma Boardwalk for 7.8 million rand, Robertson Spices for 2.8 million rand, Stone Stamcor for 2.4 million rand, La Lucia Ridge vacant land for 2.3 million rand Express House for 0.89 million rand and Pittsburg Industrial Park for 0.78 million rand.