Premium Properties has posted the second-highest distribution growth of all the listed property funds to have reported results so far this year.

The listed property loan stock reported on Monday that distributions increased 24,4% to 28c for the six months to August.

Top performer Spearhead Property Holdings, which like Premium has a strong development division, reported a 25% increase in distributions for the year to June.

Mariette Warner, head of property funds at Stanlib Asset Management, said Premium's performance was attributable to the "upgrading and conversion of previously vacant space to highest and best use in the residential rental market".

Warner said the company was also helped by a reduction in finance costs and control of expenses.

Premium Properties has substantial investments in properties in Pretoria.

Premium MD Jeffrey Wapnick said the strong performance of the Pretoria central business district's retail, office and residential sectors was expected to continue.

Provided market conditions and the interest rate environment remained stable, Premium's distributable income for the second half of the year would be in line with the current distribution.

Premium was named recently as the best-performing property loan stock company. Its portfolio comprises buildings in central Pretoria with further holdings in Hatfield and Silverton.

It recently acquired property holdings in central Johannesburg, and said it would "pursue opportunities" that would enhance the value of its portfolio.

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge