“This earnings growth has been achieved without distributing any capital profits,” he said. “Since January we have been able to operate under normal market conditions. We have been successful in proactively managing the underlying portfolio, redeveloping and refurbishing existing properties, acquiring-earnings-enhancing investments and building new shopping centres at earnings-enhancing yields.”

He was responding to Hyprop allegations of poor portfolio management, a history of poor distribution growth and overall poor performance relative to other retail listed funds in a booming retail market.

“The cost associated with the Hyprop corporate action suppressed earnings growth in the 2006 financial year. While under the Hyprop offer and in terms of regulations of the Securities Regulation Panel, we were not able to buy, sell or develop our properties. We were hamstrung. It’s very difficult to grow earnings in these circumstances. “
Sparks said allegations that the proposed acquisition of a portfolio from Sharemax
Investments was wrongly priced were misplaced.

“We are proposing to acquire the portfolio at a price lower than the independent valuations and at a price which will not be dilutory to existing unitholders. This will be demonstrated to unitholders in a circular to be distributed to them shortly.”

It was disappointing that at the AGM Hyprop found it necessary to vote against every resolution proposed, including the adoption of the annual financial statements and the appointment and remuneration of auditors. In all but one resolution they were the only negative vote, say Sparks