This is a 3% increase over the 2003 dividend of 28,49 cents per unit. Allowing for the interim dividend of 14,75 cents per unit, a final dividend of 14,59 cents per unit will be distributed at the beginning of March.

According to Charles Ryan, the asset manager for Capital, the acquisition of 2 Long Street (an office block in the Cape Town CBD) and Southway Mall in Durban - together with the latter's refurbishment programme - and the ongoing sales of older, non-performing properties are in accordance with an objective to improve the quality and spread of the portfolio.

"Eight properties were sold in 2003, with another one transferred in January 2004.

"A further three sales have been negotiated and are subject to conditions precedent. Transfer is expected in 2004. These sales total R29-million."

He adds that there has been a substantial improvement in the occupancy rate of the portfolio, and that vacancies have declined from 15% at the end of 2001 to 6% at the 2003 year-end, with a consequential impact on earnings.

"The refurbishment of Southway Mall has progressed well, with 85% of the space let. Strong interest should see the balance taken up in the near future.

"Various options to create additional parking in 2 Long Street, through the conversion of the two lower levels of offices to parking, are ongoing."

Capital's unit price, which commenced the year at 180 cents per unit, rose to a high of 255 cents per unit before closing the year at 243 cents per unit, representing a 35% increase.

"During the year 36,9-million units were traded. This is 28% of the total units in issue and is a substantial improvement over the 20% recorded in 2002," said Ryan