Hospitality Property Fund reports total returns of 116%

Posted On Friday, 31 August 2007 02:00 Published by eProp Commercial Property News
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Linked unitholders will receive debenture interest payment for the six-month period ended June 2007, of 50.83c per A-linked unit and 71.68c per B-linked unit

Joseph AminzadehProperty loan stock company Hospitality Property Fund (HPA) on Thursday reported total returns of 116% for B-linked units for its first full trading year ended June.

The A-linked unit distributions amount to 100.46c, as set out in the listing prospectus forecast for the year to 30 June 2007. The B-linked unit distribution equates to 140.40c, which exceeds the prospectus forecast by 17.9% and is 20.2% up on the previous year's four-and-a-half month annualised distribution.

Total return on Hospitality A-linked units total 38% and for B-linked units it amounts to a notable 116%. The Fund's total returns during the reporting period significantly outperformed the listed property sector.

Linked unitholders will receive debenture interest payment for the six-month period ended June 2007, of 50.83c per A-linked unit and 71.68c per B-linked unit.

Continued positive performance is expected for Hospitality according to Deputy CEO Joseph Aminzadeh. "Economic and business conditions on balance remain favourable and the robust trading conditions for the hotel industry look set to continue particularly in the lead up to 2010. While Hospitality has a relatively small exposure of earnings from underlying operational income, it should nonetheless benefit from this positive environment," points out Aminzadeh.

In order to fund various acquisitions and capital projects of approximately 750 million rand, Hospitality is seeking to undertake a 500 million rand rights offer at an issue price of 1,286 cents per A- linked unit right and 1,858 cents per B- linked unit right. The rights entitlement will be 17.4  A- linked unit rights and 17.4 B- linked unit rights per 100 A- or B-linked units.

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