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Metboard reports higher revenue

Posted On Thursday, 02 June 2005 02:00 Published by eProp Commercial Property News
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Metboard Properties reports a 22.6% rise in revenue to R233m and trading income up 21.4% to R181.6m for the year ended March 2005.

Property-Housing-ResidentialSouth African industrial property company Metboard Properties (MPL) has reported a 22.6% rise in revenue to 233 million rand and trading income up 21.4% to 181.6 million rand for the year ended March 2005, largely due to property acquisitions and lower vacancies.

Total distributable earnings increased by 26.7% to 111 million rand.

During the period, the company acquired 28 properties and vacancies reduced from 5.0% at March 2004 to 2.4% at March 2005.

Total debenture interest payable to linked unit holders increased by 26.7% and the aggregate distribution per linked unit for the year to 31 March 2005 increased 3% to 40.17 cents from 39 cents a year earlier.

The final distribution increased by 3.2% to 21.67 cents for the six months ended March compared with 21 cents a year ago.

The company revalues its property portfolio on an annual basis in March of each year and accordingly the investment properties were revalued upward by 8.8% to 1.848 billion rand.

Metboard's stated net asset value per linked unit increased 10.2% to 358 cents from 325 cents at 31 March 2004.

During the year, 28 properties were acquired at a total cost of 295 million rand. The acquisitions were financed by the issue and placement of an additional 36.5 million linked units at an average issue price of approximately 294.3 cents per linked unit, 159.5 million rand of additional borrowings and the proceeds from the sale of properties.

In line with the policy of disposing of under-performing properties the company disposed of 17 properties for 50.5 million rand. The loss on disposal of these properties amounted to 1.5 million rand.

A further 14 agreements of sale for an aggregate consideration of 59.5 million rand have been concluded in respect of under performing properties.

Agreements for the purchase of two additional buildings with an aggregate purchase consideration of 23.3 million rand were concluded in May 2005. Transfer of these properties are expected to take place by the end of July and the purchase consideration will be settled through a combination of the issue of new Metboard linked units as well as additional borrowings from existing facilities, the company said.

Metboard said it has delivered growth of 3% in distribution for the reporting period.

Looking ahead, it said although the market conditions in the industrial sector have improved, it is still experiencing reversionary pressures on the renewal of expiring long leases.

However, the directors expect the overall improvement in the sector's rental levels to continue and are of the view that the total distributions for the year ending 31 March 2006 should exceed that of the current year.

Last modified on Friday, 09 May 2014 09:54

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