Annuity Properties retains distribution growth

Panico Theocharides and Derek Greenberg joint CEO's of Annuity Properties

JSE-listed Annuity Properties (ANP) has reported strong portfolio growth with a 148% increase in portfolio size to R1.4 billion for the year ended March 2013.

It declared a full year distribution of 40.91 cents per linked unit - 1.1% up on its forecast.

The group earned gross rental income (excluding the straight lining of income accrual) of R57.4 million from its letting enterprises during the year.

As at 31 March 2013 the company was committed to acquire the Virgin Active Bryanston Building for an amount of approximately R118.0 million.

Annuity's strategy is to establish and build a balanced property portfolio consisting of income producing properties in the commercial‚ retail and industrial sectors. Its growth and investment philosophy is focused on delivering sustainable income distribution growth and capital appreciation over the long term through active portfolio management and its continued focus on quality properties in the larger metropolitan areas.

“Annuity has performed in accordance with the financial targets set at the time of its listing on the JSE in May 2012. The acquisitions executed during the 2013 financial year are expected to provide Annuity with a strong platform from which to leverage its investment strategy‚ which is to pursue long term value enhancing acquisitions‚” it said.

While the global and domestic economic environments remain fragile‚ evidenced by pressure on consumer spending and tough trading conditions‚ the quality of the property portfolio‚ combined with Annuity's active focus on tenant retention and cost management place Annuity in a strong position to continue delivering growth in distributions to its linked unitholders for the year ahead‚ it said.

Annuity Properties was listed on the JSE in May 2012.