Acucap first half distribution up 6%

Acucap Properties on Thursday reported a distribution of 145c per unit for the six months ended 30 September 2011.

Acucap Properties on Thursday reported a distribution of 145c per unit for the six months ended 30 September 2011, 6.03% higher than the same six month period last year.

The group reported headline earnings per linked unit of 102.11 cents for the period compared with 107.65 cents previously.       

Particularly pleasing, the group said, was the high level of leasing activity that took place in the current period. Nearly 74,000m2 of leases expired and were renewed or re-let during the six months to 30 September 2011, with the result that over 50% of Acucap's contractual revenue is attributable to the period from March 2015 onwards.

At the retail level, leases for 53,049m2 expired, and there were renewals and new leases signed for 53,914m2, the positive difference representing a decline in vacancies. At R97/m2 on average, renewal rentals were 10% lower than expiring rentals, but excluding the effects of the Checkers Hyper lease at Festival Mall, which expired after a 20 year lease term, renewal rentals were R105/m2 on average, 12% higher than expiring rentals.

Leases for 24,427m2 of retail space are due to expire in the next 6 months of the 2012 financial year, at average rentals of R132/m2, and are expected to be renewed at an average of R146/m2. Vacancy rates remained low across Acucap's retail portfolio, ending the period at 2.4% of retail GLA.

Acucap's high quality office portfolio performed well in the period under review. Of the 20,907m2 that expired during the six months to 30 September 2011, 19,858m2 was renewed or re-let.

Average renewal rentals of R119/m2 net reflect a negative reversion of 8%, with only a marginal increase in vacancy to 4% at the end of September 2011.