Grayprop distributions up 11.4%

Posted On Monday, 06 November 2006 02:00 Published by eProp Commercial Property News
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Allan Gray Property Trust has reported an increase of 11.4% in distributions for the year ended September to 39 cents per unit from a previous 35 cents per unit

Allan GrayListed property company Allan Gray Property Trust (Grayprop, GRY) has reported an increase of 11.4% in distributions for the year ended September to 39 cents per unit from a previous 35 cents per unit.
 
Grayprop said the increase was made up of a 13% increase in earnings in the retail portfolio, a 22% increase in the office commercial portfolio, an increase of 5% in the industrial portfolio and a 7% increase in the specialised portfolio.
 
Headline earnings were reported at 382.7 million rand, a slight decrease from the previous 383.4 million rand, while headline earnings per unit dropped slightly to 38.4 cents from 38.5 cents in the previous comparable period.
 
The company said that corporate expenses for the year increased by 33% due to higher borrowings and a higher unit price, both of which contributed to higher management fees.
 
Grayprop added that the value of the portfolio was higher than the previous year, with net asset value up 25% from 2005 at 5.22 rand per unit. This left the property portfolio on an 8.7 forward earnings yield at this value.

The company said one of the highlights of the past year was the completion of N1City. They reported that this had shown a 30% growth in sales and 47% increase in foot-count over the previous year, during the first month's trading.
 
Alterations were reported to have commenced at Benmore Gardens to improve the retail mix, parking and circulation at a net total cost to Grayprop of
66 million rand.
 
Work was also reported to be underway to provide a new store for Pick 'n Pay, a relocated Dischem and the introduction of a Woolworths food store, a Toyzone and Baby City.
 
MD John Rainier said that due to the nature of the project, it would take two years to complete which would negatively impact earnings generated by the centre during that period.
 
"But given the central location of this property and the pace of residential developments in its vicinity, we believe the alterations will position it well for superior future growth in earnings. It is anticipated to have an initial yield of 8.5%," he said.
 
At Centurion Mall, work was reported to have commenced on the 268 million rand extensions and refurbishment of the Mall, and the construction of additional parking facilities. The project was expected to be completed by September 2007 and is anticipated to generate an initial return of 9%, according to Grayprop.
 
The company's share price was last up 0.17%, or one cent, to 5.86 rand.

Last modified on Monday, 28 April 2014 15:43

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