Print this page

Vacancies drag down Ambit's dividends

Posted On Friday, 17 November 2006 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Listed property loan stock company has reported below-average distribution growth of 7,6% to 29,6c for each unit for the year to September

Property-Housing-ResidentialThe company said an increased vacancy factor during the year under review had contributed to the below-average distribution growth.

The average distribution growth from the listed property sector this year has been about 11,9%.

Ambit financial manager Wendy Raffinetti said the company had a small property portfolio consisting of properties worth R825m and a R110m investment in Namibian-based Oryx Properties.

"There were some vacancies that did hit us during the year," said Raffinetti.

She said vacancies were lower than 1% when Ambit was first launched in 2004, but a vacancy level of 3,5% this year had affected earnings growth.

"The vacancies are mainly in our office portfolio and it's temporary because we?ve already got tenants in some of that space," said Raffinetti.

She said the company was "comfortable" it would be able to let the remainder of the new vacant space.

Ambit's property portfolio is predominantly retail-focused with 59% of the portfolio made up of retail property. The company owns 27 properties.

Ambit said it had also increased its investment in Oryx Properties, which is listed on the Namibian Stock Exchange, to 30,6% through an Oryx rights issue, where additional units were taken up.

The value of Ambit's interest in Oryx increased from R82,9m to R110,9m.

In August, Absa Bank acquired the rights to the remaining 50% interest in Ambit Management Services, Ambit's management company.

Marriott Property Services held this interest.

Marriott continues to manage the bulk of the properties in terms of the existing property management contract.

Ambit said its strategy was to increase its property portfolio to more than R1,5bn and its market capitalisation to more than R1bn during the next year.

Last modified on Monday, 28 April 2014 14:02

Related items