Ingenuity's earnings rise to 2c a share

Atlantic Centre in Cape Town's central business district. Image: Galetti

Chief Executive Arnold Maresky said careful cost management had also enabled the company to grow revenue 208% to R123.3m‚ compared with just R39.9m for the corresponding period last year.

"Cost management has been well controlled and helped us to perform strongly in the Western Cape where growth is a challenge‚" he said.

Net property income‚ which comprised gross rental income less direct property expenses‚ increased 175% to R75.6m compared with last year 's R27.5m‚ due mainly to the properties purchased during the period‚ development properties being completed and coming on stream‚ and rental escalation from existing leases.

Property expenses and non-property overhead expenses were within budget and were well controlled. As much as 95% of the company's property portfolio comprises investment properties with a tenant base‚ and the other 5% consists of properties in the process of development or land held for future development.

The asset base of the investment property portfolio has increased 189% to R2.3bn over the comparative period because of the completion of the developments of Glacier Place and Atlantic Centre‚ the acquisition of strategic investments made and transferred during the period under review‚ and fair value revaluations at the end of August last year.

Total cash on hand at the end of the interim period amounted to R32m compared with last year 's R12.4m. Any surplus cash was used to reduce borrowings on an access facility basis.

Maresky said Ingenuity's core focus was to "build a superior quality Cape-focus ed investment fund".

The firm completed the tenanting and occupation of its two major developments‚ namely Glacier Place and Atlantic Centre. Two further developments begun during the period under review are due for completion during the last quarter of this financial year.