ApexHi Properties Limited announced a 6,8% increase in distribution delivering 117 cents per combined unit for the six months to end December 2005, up from 109,50 cents in the comparable period in 2004.

Distributions to A unit holders totaled 52,65 cents (2004: 51,00 cents) equating to a 3,2% increase, and distributions to B unit holders totaled 64,35 cents (2004: 58,50 cents) equating to an increase of 10%.

A distribution of 25,88 cents per A unit and 31,62 cents per B unit was paid in the first quarter. The board has approved a distribution of 26,77 cents per A unit and 32,73 cents per B unit for the quarter ended 31 December 2005.

ApexHi CEO Gerald Leissner says during the first quarter of the 2006 financial year, and for the first time since the listing of ApexHi in March 2001, ApexHi A unit holders participated in the increased distributions. “A units now receive 45% of the distributable income and no longer the minimum of 25,5 cents per quarter,” says Leissner.

Total assets have increased by 37% to R5,5-billion. In the six months to end December 2005, ApexHi acquired 173 properties from Prima for R1,1-billion at an average yield before gearing of 11,2%. A further 21 properties were acquired at an average yield before gearing of 12,5% for a purchase consideration of R310-million.

In the period in review, ApexHi disposed of 11 properties, realising a capital profit of R1,3-million, and the proceeds of R194-million were used to reduce debt. At end December 2005, the property portfolio comprised a total of 426 properties worth R5,1-billion, with a gross lettable area of 2,4-million square meters.

Leissner says the vacancy reduced from 10% to 9%, which can be attributed to proactive letting activity that decreased vacant space by approximately 32,000m2.  “Leases for 211,309m2 were concluded in the period, and 70% of leases that expired were renewed,” he says.

ApexHi acquired a further 3 078 895 MICC units and R19.5-million in cash with the sale of Protea Assurance building in Cape Town to Oasis Crescent Property Fund, increasing its shareholding in MICC from 19% to approximately 24%. Agreement has been reached to acquire nine MICC properties in exchange for ApexHi’s undertaking to accept the offer made by Vukile to minority unit holders in MICC.

Total borrowings amount R1,5-billion equating to 29% of the property and securities portfolio. Some 90% of the debt is fixed at a weighted all inclusive rate of 10,21% and for an average period of six years.

Liquidity continues to be one of the highest in the sector, with 28% of the A units and 29% of the B units traded in the first six months of the financial year, amounting to trading volumes of about R1-billion.

In addition to the nine properties worth R136-million that will be acquired from MICC, ApexHi has acquired a further 14 properties for R248,3-million since 1 January 2006, and disposed of four underperforming properties for R22,6-million. This boosts the portfolio to 445 properties, valued at R5,6-billion with gearing of R1,9-billion.

ApexHi has proposed amending the A and B unit capital structure to recreate the original distinction between low risk fixed coupon debentures and high risk high growth variable rate debentures, with the introduction of the C unit. [See separate announcement].

Leissner says distributions in the second half of the year are expected to exceed those of the first half, and ApexHi is expecting to deliver growth in distributions of at least 8% over that of the previous 12 months.

Ends

For further information, please contact:

Gerald Leissner
ApexHi Properties Limited
Tel: (011) 283 0150

Monica Meyer / Sandra Mason
Ogilvy Public Relations Worldwide / South Africa
Tel: (011) 709 9609

Date: 9 February 2006