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Ambit's results trump its forecasts

Posted On Monday, 22 November 2004 09:14 Published by eProp Commercial Property News
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Listed property loan stock company reported positive maiden interim results on Friday, announcing that its distributions to unitholders were 4,7% higher than its initial forecast

Property-Housing-ResidentialNick Harris, CEO of Ambit, which announced a distribution of 16,75c a linked unit for the eight months ended September 30, attributed the better- than-expected distribution to, among other things, a reduction in the fund's vacancy levels.

Ambit, which had a market capitalisation of more than R350m and property assets worth R555m, reduced vacancies in its portfolio from 2% to below 1% .

The fund, a joint initiative of Absa Commercial Property Finance and Marriott Holdings, listed on the JSE Securities Exchange SA in February this year.

About 57% of the company's property portfolio comprises retail properties, while about 30% consists of offices and 13% industrial properties.

Harris said the fund had managed to get better rentals when renewing leases . He said that when it bought the property portfolio it was able to improve rentals and had also leased vacant space.

"We've also got slightly better turnover than we forecast and also our cost of borrowing is slightly down on what we forecast," said Harris. He said he was pleased with the results.

"It's always nice to better your forecast. It's a way of rewarding shareholders who came on at the beginning. It's a yield of 12,6% on the listing price of R2."

At present, Ambit's linked units are trading at R2,25.

Harris said the investment strategy was to "get out there" and grow the fund. He said the company's first target was to have R1bn worth of property assets.


Last modified on Wednesday, 14 May 2014 13:19

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