MD Francis Nyambiri said there had been slower growth in rentals relative to the appreciation in investment property values.
The group reported a flat outturn in operating profit of US$5,47 million from $5,41 million in 2010.
Fair value adjustments of US$19,4 million saw the group report a profit of US$18,63 million. Knight Frank did the valuations and attributed the amount to the positive effect of the ongoing refurbishments of some key properties and rental increases across sectors. The board declared a dividend of US0,0688 cents per share.
The group’s property assets now exceeded US$100 million. The group had acquired additional land in Borrowdale, measuring a total of 52 611 square metres.
Nyambiri said that the land was zoned for residential construction but the group would try to persuade the city council to change the zone to that of mixed purposes. The Pearl group has 53 properties.
On current projects, Nyambiri said a total US$1,1 million was committed to the refurbishment of George Square Shopping Centre at Kamfinsa. Before the refurbishment, the rental yield was 4,26% but post-refurbishment, the yield would rise to 11,35%.
TM Supermarkets, through Pick n Pay, would be the main tenant. Pick n Pay will also carry a clothing store and another for liquor. Nyambiri also added that the group had five tenants waiting for units.
The group said it would also expand the Arundel Office Park, adding two office blocks at a cost of US$8,5 million.
Nyambiri said the group had a total land bank which was valued at US$43 million.
The Pearl group plans to leverage its relatively strong local brand and enhance superior market performance by exploring strategic alliances and linkages with local, regional and international stakeholders such as financiers, investors and tenants. — Staff Writer.