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Business Reporter
Listed property developer Pearl Properties’ revenue for the four months to April 2015 was ahead of budget at $2,89 million but 3,15 percent below the 2014 position.

The rental yield for the period was at 7,24 percent from 7,47 percent reflecting a downward movement in the rental income.

Pearl Properties managing director Mr Francis Nyambiri told the company’s annual general meeting last week that rental per square metre for the period under review was down to $7,44 from $7,58 in the previous year.

He said occupancy levels were down to 79,54 percent, representing a slight change from 79,93 percent of the previous period.

“Collections were at $2,17 million driven by prepayment of rentals by a number of our tenants. Arrears, however, increased $254 000 to $2,64 million from the December 31 position. This is mainly the case with our business that in the first four months of the year the collection rate is bit low in terms of the actual arrears and tends to progressively get better as we head towards the end of the year,” said Mr Nyambiri.

Property expenses for the period increased $73 700 to $357 300 from prior year mainly driven by provision for doubtful debts and utility payments for vacant space.

Administration expenses were within budget at $854 000 but declined $135 000 from last year.

Mr Nyambiri said this reflects the effect of the staff rationalisation which the company undertook last year.

Property expenses and revenue ratio for the period was at 12,33 percent from 9,47 percent, an increase which was driven by the provision for doubtful debts and the cost of vacant space.

Admin costs to total income was at 29,46 percent from 33,03 percent last year while staff costs came down to 15,67 percent from 16,86 percent of the previous period.