Metboard unitholders received a total capital and income return of 97.9% for the financial year.
Metboard's linked units closed at a record high of 710 cents on 31 March 2006, an increase of 86.4% on the 381 cents closing price at the end of the previous year, after trading actively on the JSE Limited.
"This represents a substantial growth in returns for Metboard linked unitholders," says Estienne de Klerk, executive director of Metboard Properties, the only focused industrial property loan stock on the JSE Limited.
De Klerk explains that Metboard linked unitholders can expect continued distribution growth as well as substantial benefits, without the dilution of earnings, as a result of the scheme of arrangement by which Metboard will become a wholly owned subsidiary of South Africa's largest JSE-listed property holding and investment company, Growthpoint Properties Limited. The offer was accepted by 90.11% of the unitholders present at the scheme meeting in April 2006 and has been sanctioned by the High Court of South Africa.
It is anticipated that the scheme will be implemented in August 2006, effective 30 June 2006. Metboard unitholders will receive a special interim distribution for the quarter ended 30 June 2006.
"It is envisaged that this special distribution will be the last distribution paid by Metboard as a JSE listed company and will be made to unitholders before the implementation of the scheme in August 2006," notes de Klerk.
At the year end Metboard's property assets were valued at 2.177 billion rand, an increase in value of 307.9 million rand. This revaluation represented an increase in value of 16.5% is a result of the improved yields that industrial properties are currently trading at.
"Ensuring that the property portfolio is well maintained and in excellent lettable condition will drive sustainable income growth in the future," said De Klerk.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
