Listed property loan stock company ApexHi Properties, which reported quarterly results on Wednesday, said that its “C” unitholders had for the first time participated in quarterly distributions.

CEO Gerald Leissner said the “C” units, which were introduced in October last year, were participating in the distributions a year earlier than originally expected when they were issued.

The reason is that ApexHi’s distributions have grown quicker than the company expected.

ApexHi is one of two companies on the JSE that have different types of units available for unitholders.

The unit structure offers different risk and different return options. Prior to October last year the firm offered “A” and “B” units.

The “C” unit was introduced to facilitate a black economic empowerment deal.

ApexHi reported a total distribution of 78c for the quarter ended September this year, representing a 16,4% increase on the same three months last year.

In terms of the unit structure, the “A” units receive 45% and the “B” units receive 55% of the income distribution until the distributions reach 75c.

When the distributions exceed 75c, a new distribution structure kicks in, enabling “C” unit holders to take part in the distribution. The “C” unit holder is entitled to all the distributions between 75 c and 93,75c.

The “C” unit will receive 3 c for the quarter, with the balance of the 75 c distributed to the “A” unit holders and “B” holders on the agreed upon split.

Explaining the 16,4% surge in distributions, Leissner said rentals were increasing and the company was letting vacant space in its property portfolio.

“Our costs are under control and the interest rates on debt are fixed,” he said.

Leissner said the distribution growth was coming from increased revenue from the core property portfolio.

He said the company was expecting that kind of distribution growth for the year.

ApexHi, which listed on the JSE in March 2001, has property assets worth more than R9 billion.