Martprop also declared a final dividend of 12,5c for the six months ended July 31 , 4,2% higher than the same period last year.
Martprop MD Roger Perkin said the growth was due to a "solid performance" from the fund's industrial property portfolio, which had benefited from improved market conditions .
Martprop's vacancies in its entire property portfolio, which comprises 70% industrial properties, 20% retail properties and 10% offices, had been reduced to a low 4% from 7% at the beginning of the year.
Perkin said that vacancies were expected to fall to less than 3% in the next two months. The fund's industrial property portfolio has vacancies of just under 2% at the moment.
Martprop said the property portfolio would benefit from increased exposure to the booming retail sector, which would "underpin the positive returns expected from the fund's industrial properties".
Martprop also recently announced the post-balance sheet acquisition of an undivided half-share in the Musgrave Centre in Durban, for R187,5m. Transfer of the property is expected in early September.
With the Musgrave Centre purchase, industrial properties will make up 67% of Martprop's portfolio, while retail will make up 24% and offices, 9%.
Len van Niekerk, property analyst at Andisa Securities, said the results were solid. T he final distribution of 12,5c was slightly ahead of his expectation of 12,25c, he said.
The write-up on the valuation of investment properties of about R63m was positive, as last year there had been a write-up of R3m, van Niekerk said.
Martprop is also in a positive position as far its borrowings are concerned. At the end of the 2003 financial year, the fund's borrowings were 5% of total assets, but at the 2004 financial year-end it had no interest-bearing debt.
Van Niekerk said that, after taking into account the proceeds from Martprop's various property sales, the Musgrave Centre acquisition, and its capital projects, borrowings would increase to about 11,9% of total assets.
This left Martprop able to increase borrowings as property unit trusts are legally allowed to borrow up to 30% of total assets.
"They can potentially borrow around R300m, which is positive, because the cost of debt is generally lower than equity at the moment," he said.