The yield to maturity (YTM) on the Long Term Government Bond Index weakened during the month to end at 8.16% (7.96% - 30th April 2015). The listed property historic yield for the 37 property companies that Catalyst Fund Managers report data on, ended the month at 5.70%. Excluding non-income distributors (Pivotal, Attacq) and 100% offshore earnings focused companies (NEPI, Rockcastle, Redefine International and Investec Australia) the market cap weighted historic yield of the remaining companies is 6.58%. 

It is important to note that a growing percentage of earnings in the remaining companies are being derived from offshore earnings. This means that comparing the current yield premium spreads to historic averages is becoming less relevant.  

SA Cash recorded the highest total return (0.49%) of the four traditional asset classes for May 2015. SA Bonds (-0.76%), SA Equity (-3.95%) and SA Property (-5.93%) were the next best performing asset classes. For the last 12 months SA Listed Property has recorded the highest total return (31.73%), followed by SA Bonds (9.43%), SA Equities (8.51%) and SA Cash (6.21%).   

A number of companies reported either interim or full year results. We have listed those that have reasonable comparable period data.  

• Arrowhead reported its interim results for the period ending 31 March 2015. Distribution per A and B linked unit was 19.04%.  Management has guided to full year growth for both A and B linked units of 11.8%.  
• Delta reported its full year results for the period ending 28 February 2015.  Distribution per unit increased by 15.7% to 84.07 cents.  
• Dipula reported its interim results for the 6 month period ending 28 February 2015. A linked distribution growth was up 5% to 45.9 cents per unit and B Linked unit growth was up 9.3% to 35.34 cents per unit.  Management have guided to combined distribution of growth of between 6.5% to 7.5% for the 2015 financial year.  
• Investec Australia Property Fund reported its reviewed results for the period ending 31 March 2015.  Full year distribution per unit was A$ 8.18 cents (pre withholding tax) which is 7.6% annualized growth year on year.  
• Investec property fund reported its full year results for the 12 month period ending 31 March 2015.  Full year dividend growth was 10.1% for the respective period.
• NEPI reported its results for the quarter ended 31 March 2015.  Distribution per unit increased to 8.61 euro cents (2014 March: 7.34 euro cents), representing like for like growth of 17.3%.  
• Octodec reported its interim results for the period ending 28 February 2015.  Distribution per share increased by 9.3% to 96.8 cents per share.  Management have guided to full year distribution growth of between 8 and 9%.   

During the month Capital received a non-binding expression of interest from Fortress for the acquisition of all of the issued shares in Capital. Part of the proposal assumes the unbundling of a specialized office fund. The boards of Capital and Fortress are in discussion and will update shareholders when appropriate.   

Hospitality Property Fund advised unitholders that an investigation into allegations of misconduct by the Hospitality’s Chief Executive Officer, Mr Andrew Stuart Rogers is being conducted by the Company.