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CAPE TOWN – Landlord Octodec, which focuses on properties in the Johannesburg and Tshwane city centres, has almost tripled its distribution for its year to end-August, buoyed by reduced finance costs and resilience in demand residential and retail space.

Distributable income rose 30 per cent to R466.1 million to end-August, Octodec reported yesterday, with the landlord upping its dividend 160 per cent to 130c per share, representing about a R346 million payout.

Invests

JSE-listed Octodec is a real estate investment trust (REIT) that invests in the residential, retail, shopping centre, office, industrial property and specialised sectors. Octodec’s portfolio comprises 246 properties located in the metropolitan areas of Tshwane and Johannesburg, is valued at R11 billion. Residential income accounts for just under a third of the firm’s revenue, and retail just under a quarter.

Renewals

Although there has been a continued downward resetting of rentals across most sectors, from an Octodec perspective, several renewals are being concluded at increased rentals and demand for space in both Johannesburg and Tshwane CBDs remains strong, it said yesterday.

The group had also refinanced its debt, which amid disposals fell 10 per cent to a net R4.34 billion, while the group also reported ‘pleasing’ residential income growth of 7.6 per cent, which followed a return of students to universities, as well as a pick up of activity at OR Tambo airport.

The firm has also been bulking up its value-proposition through initiatives such as furnished offerings, and free wifi.

“There is a clear demand for affordable, quality accommodation in both the Tshwane and Johannesburg CBDs,” said MD Jeffrey Wapnick in a statement.

“Due to the success of our value-enhancing initiatives, we have seen an impressive 33 per cent increase in leasing enquiries.”

“Our CBD assets are well located in convenient locations with high foot traffic,” said Wapnick.