The final distribution is 40 cents per linked unit.

The total capital and income return for the year to Madison’s linked unitholders amounts to 53%. Since listing on 7 June 2006, the total return to unitholders amounts to 122%, based on the issue price of 500 cents.

Madison is the asset manager of three differentiated property loan stock companies listed on the JSE Limited, ApexHi Properties Limited, Redefine Income Fund Limited and Hyprop Investments Limited. In addition, it owns 40% of Corovest Fund Managers Limited, the management company of CIREF Limited which is listed on the London Stock Exchange’s AIM. Madison has a 50% stake in the management company of Proptrax, a property tracker fund listed on the JSE.

Executive director Wolf Cesman attributes the company’s exceptional performance to the strong underlying property fundamentals experienced during the year which generated robust performance for the listed property companies under Madison’s management.

“ApexHi, Hyprop and Redefine continue to expand their portfolios which should enhance their enterprise values and consequently increase the asset management fees to be earned by Madison,” says Cesman. Enterprise value comprises market capitalisation plus debt. Even in a volatile market in which linked unit prices may fluctuate, the debt, which comprises some 20% of combined enterprises value, remains stable.

Madison’s revenue for the financial year of R193,1 million comprises asset management fees of R141,5 million, development fees of R22,8 million, leasing commissions of R17,1 million and property management fees of R11,7 million. Other income of R14,0 million includes transaction and consulting fees.

“The business fundamentals of Madison remain sound,” says Marc Wainer, Madison executive director. “The economic and market volatility currently being experienced is expected to continue during the current year and could provide Madison with potential for corporate action and its managed funds with opportunities to expand their property portfolios,” notes Wainer.

Madison anticipates that, subject to market conditions remaining stable and based on the current unit prices of the managed funds, the total distribution for the year ending 31 December 2008 will increase by between 10% and 12% compared to 2007.

Highlights for the year include Madison’s purchase of a 40% interest in Corovest Fund Managers Limited, the management company of CIREF Limited, for R100,15 million. LSE AIM-listed CIREF has a market capitalisation of £107 million. On 28 August 2007, Madison issued 11,128,000 linked units, at a price of 875 cents per unit, to fund the acquisition of its interest in Corovest. The balance of the purchase price of R2,78 million was paid in cash.

“Income from Madison’s strategic investment in Corovest is expected to contribute significantly to future income based on expected growth in CIREF by way of acquisitions and developments in the UK and Europe,” says Wainer. Madison will continue to seek international investment opportunities, in joint ventures with partners who offer local knowledge of the specific markets.

Madison also acquired 50% of Property Index Tracker Managers (Proprietary) Limited (PropTrax) which has been appointed as the manager of the newly approved Property Index Tracker Collective Investment Scheme in Securities, an exchange traded fund which tracks the performance of the FTSE/JSE SAPY index. PropTrax listed on the JSE Limited on 25 September 2007.

Madison’s development and leasing divisions, which were established during the year, are performing exceptionally well and have contributed significantly to Madison’s earnings. Madison currently has 25 projects under management for Redefine, ApexHi and New York based international company Lehman Brothers. The iconic Cape Town Convention Tower, which recently achieved a record office rental of some R200/m2 for the tower’s penthouse office suite, is amongst these developments.

“The development and leasing divisions are growing in line with the wide range of opportunities and demand which still exists in the current market. We anticipate that over time, these functions will substantially increase their contribution to Madison’s earnings,” says Madison executive director Mike Flax.

Based on the year-end linked unit closing price of 995 cents, Madison’s market capitalisation at 31 December 2007 was R2,066 billion compared with R1,330 billion at the end of 2006. Proving notably liquid, 71,7 million linked units traded during the year for R732,8 million on the JSE Limited, equivalent to 39,7% of the weighted average number of linked units in issue during the year.