Listed property investment group Pangbourne Properties has reported flat growth in headline earnings per unit (EPU) for the six months to end-December 2002, at 41.48 cents from 41.69 cents in the year-earlier period.

Pangbourne says the results for the two periods are not comparable because of its acquisition of two funds - CBD and Pioneer - in April 2002. Headline earnings had remained flat because of small growth in rentals. The rental market had been tight and it had been difficult to obtain upward revisions
on renewals.

However, the group did maintain its distribution per unit at 41 cents for the period. Revenues grew substantially to R125.5-million from R69.7-million a year earlier, while operating profit rose to R79.3-million from R43-million.

Profit for the period was recorded at R83.2-million, a jump from R38.6-million previously, while closing retained earnings stood at R33.5-million from R27.5-million.

Occupancies had increased from 83.2% at December 2002 to 88.1% currently, Pangbourne added. However, vacancies were taking longer to fill than anticipated.

The group's average cost of funding stood at 13.45%, with 60% of its borrowings fixed. Opportunities to fix long-term borrowings at advantageous rates were currently being evaluated, it concluded.