Strong leasing activity reduces vacancies in ApexHi portfolio

ApexHi Properties Limited has concluded leasing deals worth R533,6-million for 211,309m2 of space in the six months to end December 2005.

ApexHi director, Deon Feinblum, says 674 leases have been concluded in this period. “This equates to 112 per month or approximately five per working day,” he says.

More than 85,000m2 of space from 341 leases worth R315-million were secured from new lettings.  Leases for 178,872m2 expired during the period, of which 125,000m2 (70%) were renewed, valued at R219-million.

The net effect of the total leases concluded for the period reduced the vacancy of the portfolio from 237,561m2 (10%) in July 2005 to 205,124m2 (9%) at end December 2005.

Feinblum says stronger market fundamentals and organic growth within the core portfolio have also resulted in leases being renewed and secured at stronger rentals “The average rental per month has increased 33% from R31,33/m2 in the 2004/2005 financial year to R41,86/m2 in the first half of the 2005/2006 fiscal. This is also partly due to a significant number of retail leases being concluded in the period, which carry higher rental values,” he says.

The letting performance to date places ApexHi on target to produce stronger earnings for the interim period compared to last year, which should result in record results for the year ended June 2006.

ApexHi CEO, Gerald Leissner, says ApexHi is on track to deliver distributions which exceed the threshold of R2,27 per combined unit to be achieved before the A units show income growth. “The A units will participate for the first time in the increased distribution for the second half of the year,” says Leissner.

source: eProp - www.eprop.co.za

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