Property loan stock ApexHi (APA/APB/AXC) on Wednesday reported a 17% increase in distributions for its A and B units for the year ended June.

Distributions for A unit was at 128.47 cents and distributions for each B unit was 157.03 cents - both showing a 17% increase compared to the same period last year.

The fourth quarter's distribution on the A unit has been increased by 2.03 cents to 33.75 cents while the distribution on the B unit has been increased by 2.47 cents to 41.25 cents.

ApexHi's value of property portfolio has grown by 40% from 6.7 billion rand to R9.4 billion rand. The company further achieved a total return of 62% for the year to June 30, 2007, (A unit: 46%, B unit: 66%, C unit 223%), compared to the property loan stock average of 44%.

Looking ahead, the group said the growth in net revenue from the existing portfolio was dependent on rent escalations on existing leases, growth in rentals from lease renewals, revenue arising from the letting of vacant space and the containment of property expenses.

The current portfolio has on average, rental escalations of between 8% and 10%. Rentals on renewals are forecast to increase by between 10% and 20% with property costs expected to increase by 7%, it said. 

"The core portfolio is expected to generate between 318 cents and 324 cents per A, B and C unit ('combined unit') for the 2008 financial year and the Clearwater guarantee fee will contribute an additional 5 cents," the company said.