Oversupply of space no good news to Martprop

Posted On Friday, 30 August 2002 02:00 Published by
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Property fund Martprop increased revenue to R178,6m from R173,3m, but saw headline earnings drop to R146,3m from R147,9m for the year to June
Property fund Martprop increased revenue to R178,6m from R173,3m, but saw headline earnings drop to R146,3m from R147,9m for the year to June.

Martprop, which is managed by Marriott Property Fund Managers, said continuing market weakness due to poor economic growth, high real interest rates and the extensive oversupply of space in certain sectors of the property market saw it only maintaining its distributions to unit holders.

Net distributable income for the year remained unchanged at 23,5c a unit. A final distribution of 12,20c a unit was declared following the interim distribution of 11,30c a unit that was paid of the first six months.

The performance of the property portfolio was in line with management's expectations.

Rental income improved marginally despite the change to market related levels as leases were renegotiated. Although it viewed its current vacancy rate of 7% as favourable, it expected it to improve to 4% by next month.

Martprop said the disposal of underperforming properties and undeveloped land, together with the acquisition of new, well let properties in prime locations, would secure long-term, predictable income for unit holders.

Martprop's share price closed up 8c to 175c with 187261 shares traded yesterday.

Business Day


Publisher: Business Day
Source: Business Day

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