JSE-listed Premium Properties on Wednesday declared a dividend of 0.33c a share and interest of 65.87c a debenture, achieving a 10.3% rise in distribution, to 66.2c a linked unit, for the six months ended August 31.

The group reported a 10.5% and 6.4% year-on-year rise in rental income and net rental income respectively, despite challenging economic and trading conditions and low consumer confidence during the period under review.

“Premium continued to deliver strong earnings growth with a distribution increase, despite the lacklustre economy. Strong growth in the residential portfolio underpinned by low vacancies and high demand for quality and secure accommodation contributed significantly to the increase in rental income,” MD Jeffrey Wapnick said on Wednesday.

The company’s investment in IPS Investments also provided strong growth, with profits increasing 40.6% to R14.5-million.

“The performance of IPS was positively impacted by the improved occupancy levels achieved during the year at Craig’s Place and the mixed-use developments of Kempton Place and Tali’s Place,” he explained.

Meanwhile, the R139-million construction of a greenfield residential development, Jeff’s Place, in the Pretoria central business district (CBD), was expected to be completed in November and yield a 9.2% initial return once fully let.

Premium, which focused on properties in the Pretoria and Johannesburg CBDs, had also reported progress on the three major developments under way during the six-month period under review.

By August, the group had spent R58-million of the total R86.8-million collective price tag of these three developments.

The R71.3-million construction of an additional 87-unit residential block, with 87 parking bays, at The Fields, in Hatfield, Pretoria, was expected to be completed by November and would produce an expected yield of 8.3% once fully let.

The R8-million upgrade of Pretoria CBD-based mixed-use property Prinsman Place was completed in September, while a R7.5-million residential and retail upgrade of the Demar Building, also in the Pretoria CBD, would be completed this month.