Metboard Properties

Market could be moving in its favour

Price: 485c

Market cap R1,36bn

Yield: 8,6%

12-month high, 520c;

PE ratio: 11,4. Sector PE: 26,7

Low, 335c

monthsrecincome(c/incomeper unit

toRmRmunit)per unit (c)(c)

Sep 0390,174,031018,018

Mar 04100,082,532522,621

Sep 04107,290,631019,818,5

Mar 05125,8109,035622,921,67

Sep 05124,6110,137119,819,8

% chge162220-7

Trading vol 12-month average: 12,4m/month

*On contractual basis.

As the only focused listed industrial property stock, Metprop has reflected the dull state of that market in its results. But the company believes things are changing in its favour, and the latest distribution is evident of that. Vacancies are now down to 2,1% by area. If market conditions remain stable, Metprop expects similar 7% growth in the second half, implying final distribution of about 23,2c, a forward yield of 8,9%. And with luck, the tempo could quicken next year and beyond.
 
Financial Mail
Publisher: I-Net Bridge
Source: I-Net Bridge