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Metboard Properties Limited announces increased distributions

Posted On Thursday, 03 June 2004 02:00 Published by eProp Commercial Property News
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Metboard Properties Limited announced a total distribution of 39c per linked unit for the year ended 31 March 2004.

Norbert SasseMetboard, the only listed property fund invested entirely in industrial property, increased its distribution by 2.63% from 38 cents per linked unit the previous year, with debenture interest payable to linked unitholders up 19,42% from 31 March 2003.

The final distribution of 21c per linked unit will be paid on Monday 28 June 2004. An interim distribution of 18c per linked unit was made by Metboard for the six-month period ended September 2003.

Metboard's year-end results show that revenue and net operating income for the year have increased by 12.97% and 19.36% respectively. In addition, Metboard's total assets have increased by 28.8% year-on-year with investment properties accounting for 26% of this increase.

"This is in line with our stated policy of growing our investment properties and was achieved through the acquisition of 21 additional properties in 10 different acquisitions for a total cost of R216.6 million," said Metboard Fund Manager Jeffrey Sher.

Metboard's performance and activity during the financial year ended March 2004 strongly promoted its strategy to grow the fund while simultaneously refining its portfolio, with the ultimate aim of increasing yields and distributions.

Through acquisitions Metboard has increased its portfolio to 166 properties spanning industrial parks, warehouses, light and heavy industrial premises and motor trade with a gross lettable area of more than 1.3 million square metres.

A combination of the new acquisitions and a revaluation of the portfolio, which increased its worth by R73.8 million, resulted in Metboard's portfolio totalling R1,412 billion as at 31 March 2004.

In addition to growth through acquisition, Metboard began the construction of a state-of-the-art food factory for Magpie Foods at a total estimated cost of R22.9 million during the year ended March 2004 which will be completed this month. Metboard also spent R24 million on upgrading and enhancing properties during the financial year.

In refining its portfolio Metboard sold 13 properties that either no longer met investment criteria or were under-performing. The net proceeds from these disposals totalled R34.7million.

As a result of the disposal of these under-performing properties, and in addition to the general signs of improvement in vacancy rates across the sector, Metboard's portfolio now has a 4,99% vacancy level.

Metboard's growth and refinement strategy has already been furthered in the current financial year with Metboard's purchase, subsequent to its year-end, of 29 properties in two separate acquisitions. This includes the 22 properties from Lyons Corporate Lease Fund Limited portfolio for R176.4 million and the seven properties from African Tubes and Pipes for R87 million. Both transactions are still awaiting approval from the Competition Commission.

With a large percentage of leases coming up for renewal in the next 18 months and with the low prevailing inflation rate and downward pressure on escalation rates, Metboard is experiencing reversionary pressures on rental levels and expect total distributions for the year ending March 2005 to be in line with total distributions this year.

For further information, please contact:

Metboard Properties Limited

Jeffrey Sher

Tel. 011 286 7000

Cell 082 881 3147


Norbert Sasse

Cell 083 632 1599


Marketing Concepts

Sandy Davey

Tel. 011 880 2213

Cell 083 453 6668

Last modified on Tuesday, 13 May 2014 11:21

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