Grayprop interim results for the six months which ended on March 2003 were in line with expectation, showing no growth from the same 15c declared for the same period last year, according to the latest Provest property roundup.
Grayprop earnings are likely to be flat for the year to September given the following:
nInterest costs not being capitalised on proposed improvements (including Centurion and Randburg Waterfront). Interest costs will instead be offset against income and will impact on earnings;
nManagement is anticipating an upswing in office rentals in 2004 - but a number of leases fall due in the current year and there is still downward pressure on office rentals; and
nHigh yielding properties have been sold with the intention of improving the overall quality of the Grayprop portfolio.
Given the above, no growth is anticipated for the full year ending in September. The sale of six properties during the first six months of Grayprop's current financial year realised a profit of R3,5-million to book value.
