SRL
SRL
SA Retail - Interims Signal Growth Free Of Hyprop Shackles
S A RETAIL PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/025764/06)
(JSE Code: SRL & ISIN Code: ZAE000034328)
("SA Retail" or "the Company")
The 13,7% distribution growth achieved by SA Retail Properties Ltd for the
six months to September was above market expectations and demonstrated its
ability to deliver to unitholders free of the impact of corporate action by
Hyprop, said Peter Sparks, managing director of SA Retail.
"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 dissapointing that 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.
ends
Date: 02/11/2006 09:08:02 AM Produced by the JSE SENS Department
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