The redevelopment of Killarney Mall Shopping Centre, favourable renewals of leases, strict expense control as well as extremely favourable trading conditions have all contributed to the growth in distributable earnings. The retail portfolio which consists of five quality shopping centres, continued to enjoy strong growth in earnings due to favourable renewals and contractual rental escalations. Rental income and net rental income increased by 25.4% to R180.6 million (R143.2 million) and 33.8% to R114.9 million (R85.9 million) respectively. Based on the unit price of R12.00 at 31 August 2006, the total income plus capital appreciation for the year was 51.5%. Finance income rose to R46.9 million (R34.3 million) but income attributable to linked unitholders decreased slightly to R225.3 million (R225.6 million).
Distribution
A dividend of 0.23c per share together with interest of 45.97c per debenture was declared for the period.
Prospects
With the increased concern about the rising levels of inflation, interest rates look set to increase further. As interest rates increase, the level of growth in the economy will slow which in turn will slow the growth in distribution. However with property fundamentals remaining strong, management is optimistic that the company will continue to grow earnings on par with, if not better than, the market average.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
