Durban-based holding company Marshalls reported last week that its headline earnings a share had increased about 24% to 8,3c for the six months to June on the back of strong demand for light industrial property.

The company also reported an increased profit for the period of R1,3m, up from R669000.

Marshalls is a holding company that receives income in the form of dividends from its wholly-owned subsidiary.

This subsidiary in turn has a wholly-owned subsidiary which has substantial income-producing commercial and light industrial properties and a parking garage.

Marshalls said the demand for leased light industrial property had continued and had resulted in a vacancy level of about 1% of the "current fully let value".

The company said it had also managed to control operating overheads and had been benefiting from "substituting disposed investment properties with more cost efficient ones".

Marshalls also owns a permanent portfolio of shares in listed investments held overseas.

The market value of these shares had increased to R21,8m in June this year from R18,1m in December last year.

The company's property portfolio was valued at about R72m last December.

Eric Prange, MD of Marshalls Group, which is the main operating subsidiary of Marshalls, said the property portfolio was based in Durban and Cape Town.

He said there was strong demand for industrial space across the board.

The company declared an interim dividend of 7c a share.

Prange said the company would be paying a dividend of 13,5c for the full year, an increase on the previous year's 12c.

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