ApexHi delivers best annual results to date

Posted On Friday, 06 August 2004 02:00 Published by eProp Commercial Property News
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Property portfolio boosted to R2,97-billion, retail component increased

Gerald LeissnerApexHi Properties Limited has declared a distributable net profit of R323,1-million (2003: R247,1-million) for the 12 months ended 30 June 2004, delivering a return of 102 cents per A unit (2003: 102 cents) and 110,75 cents per B unit (2003: 106 cents).

ApexHi CEO Gerald Leissner says the results exceeded targets and unit holders’ expectations and follows a period of active growth.

Market capitalisation has grown to R2,7-billion, and the underlying assets have grown from R2,1-billion to R2,97-billion following the acquisition of 36 properties in the period, boosting the portfolio to a total of 235 properties, with a GLA of 1,9-million square metres, as at 30 June 2004.

“Importantly, the acquisitions and strategic disposals within the period have resulted in a re-balancing of the portfolio, with exposure to the office sector and CBD decreasing, and the proportion of retail properties increasing to capitalise on favourable trading and market conditions,” says Leissner. Retail properties now constitute 35% of the portfolio, while 47% is invested in offices, and 18% in industrial.

Leissner says ApexHi’s stronger focus on retail further reduces risk, as there are better rental growth opportunities and a higher demand for space. “The retail component also provides a higher proportion of A-grade tenants – a key objective in our investment strategy – and capitalises on synergies with tenants located in more than one centre. Furthermore, ApexHi’s retail properties are situated in strong catchment areas, and vacancies in these properties are at an acceptable 9%,” he says.

ApexHi’s track record since listing as a property loan stock company in March 2001 is now becoming evident. “Notwithstanding our conservative philosophy, investors who purchased one A unit at R6 and one B unit at R4 at a combined price of R10 in March 2001 have more than doubled their investment in less than three years, realising a total return on investment of 122% for the 40-month period to end June 2004,” he says. The company has delivered a total income yield of 67% and capital growth of 55%. The B units have shown a total return of 168% for the period and the A’s 91%.

Extremely high trading volumes have been maintained, with 60% of the A units being traded in the 12 months to end June 2004, and 59% of the B unit trading in the same period.

Weighted average all-inclusive cost of the company’s borrowings decreased from 13,09% in 2003 to 12,01% in 2004 as a result of the reduction in the repo-rate and the renegotiation of rates on some of the fixed-term borrowings.

Leases covering 286,512m2 were concluded during the period, of which 72% represents renewals and 28% covers new leases. Some 69% of the leases that expired during the year were renewed, up from the 60% average of the last few years. “This shows that our strategy to focus on ‘tenant’ rather than ‘location’ when purchasing properties is starting to pay off,” says Leissner.

The company aims to maintain distributions in the coming year.

For further information, please contact:

Gerald Leissner / Deon Feinblum

ApexHi Properties Limited

Tel: (011) 442-3111

 

Sandra Mason / Monica Bragança

Ogilvy Public Relations Worldwide / South Africa

Tel: (011) 880-2271

Last modified on Wednesday, 14 May 2014 11:50

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