Nick Wilson
Property Correspondent
MICC Property Income Fund posted a 12% surge in distributions for the 12 months to September on the back of a satisfactory property portfolio and reduced administration expenses.
The listed property loan stock company, whose R1,05bn property portfolio has exposure to the South African and Namibian property markets, announced a distribution of 86,5c for the 12 months compared with 77c in the previous year.
MICC said yesterday that its results were achieved on the back of a "good performance of the underlying properties, reduced administration expenditure and deferment of certain expenditure".
Gerhard van Zyl, CEO of Vukile, which owns 75% of MICC and manages its property portfolio, said that the property portfolio "across the board" had performed well over the year.
"We are quite happy with what has come out of the portfolio."
About 20% of the company’s properties are situated in Namibia, the rest are in SA.
Van Zyl said a big contribution to the increase in distributions was the reduction in administration costs. He said once-off listing costs last year formed a major portion of administration expenses, and that these had not been repeated in the current period.
MICC said its net property revenue of R130m was 3% higher than that of the previous 12 months.
The company’s net asset value for each linked unit also increased 25% in the period under review.
MICC approved an interim distribution of 45c a linked unit for the period April 1 to September 30 this year.
Publisher: Business Day
Source: Business Day
