Listed property loan stock company Atlas Properties yesterday reported a 6,3% increase to 105c in its distributions for the year to September, compared with the previous year.

The company, which has a market capitalisation of just over R900 million, said the growth was "in line with the consistent growth pattern achieved over the past 11 years".

CEO Ian Raubenheimer said the company's focus had always been "consistent earnings growth", and it had spent money on its properties.

Raubenheimer said Atlas' portfolio of 54 properties included good quality shopping centres such as Cape Town's Gardens Centre. Quality properties were scarce at the moment. "To find good quality investment properties is almost impossible."

Atlas planned to expand its Bayside Shopping Centre in Table View.

The company owned a half share in each of five industrial sites at Century City and planned to develop one of these sites next year.

Raubenheimer said the company recognised the benefits of an improving office market.

"What is clearly manifesting is that the office market is turning and rentals are climbing," he said.

Atlas always has been a predominantly Cape-based property company, with 70% of its property portfolio located in the Western Cape.

About 30% of its portfolio was situated in KwaZulu-Natal and Gauteng. The company's vacancies rose to 7,8% of rentable area, compared with 4,2% last year, which Raubenheimer said was brought about by an office tenant going into liquidation and another large tenant vacating an office property.

Since year-end Atlas had managed to bring the vacancy rate down to about 5%, Raubenheimer said.

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