Nick Wilson

Property Correspondent

AMBIT Properties has reported solid financial results for the year to September with a 9,5% increase in distributions compared with the annualised distribution for the initial eight-month period to September last year.

Ambit, which listed on the JSE in February last year and has a market capitalisation of about R561m, reported a distribution for each linked unit of 27,50c, compared with an annualised 25,13c for last year’s financial period.

Ambit CEO Nick Harris said on Friday that the distribution increase was due to “genuine rental growth” from the company’s property portfolio and the quality of the portfolio.

Harris said Ambit had also benefited to a small extent from interest rate cuts.

Catalyst Securities MD Andre Stadler said Ambit had reported a “solid set of results” but that the key issue was what Ambit’s future plans would be.

Stadler said Ambit either had to grow and demonstrate focus or it should be consolidated into other property funds in the Absa Bank and Marriott stables.

Absa and Marriott are major unitholders in Ambit and are also partners in Ambit’s management company.

But Harris said at a breakfast presentation on Friday that the company’s investment strategy was to grow its asset base to R1,5bn and explore additional property investment opportunities in selected neighbouring countries such as Namibia, Botswana and Mozambique.

Ambit already has a foothold in Namibia through its significant interest in Namibian-listed Oryx Properties.

During the year under review Ambit increased its stake in Oryx to 30,5%.

Ambit also reported a total return of 60%, which included unit price appreciation of 48% over the year to September.

The company said low vacancies of 2,2% also contributed to its positive performance in the year to September.

Ambit bought two industrial properties for a total R44,8m during the year under review.

Including the Oryx investment, Ambit has R753,9m worth of investment assets.