INTERIM DISTRIBUTIONS GROW 8.3%

FAIRVEST, the listed owner of shopping centres in South Africa servicing lowerincome communities, grew distributions a share by 8.3 percent to 10.616 cents in the six months to December from 9.806c in the previous year. The company said yesterday that it was the top-performing South African real estate investment trust (Reit), with a 25.7 percent total return to shareholders over one year. Chief executive Darren Wilder said the company had achieved compound annual returns of 21.3 percent, 21.1 percent and 18.2 percent over three, five and 10 years respectively, to secure a position as one of the top two-performing Reits for all measurement periods over one, three, five and 10 years. Wilder said Fairvest’s focus on a differentiated sector of the market and its unrelenting drive to excel at property fundamentals had allowed investors to reap the rewards of consistency. “Low vacancies and arrears, high tenant retention and solid growth in net property income continue to deliver distribution growth at the top end of the market,” he said. The value of Fairvest’s property portfolio increased by 5.1 percent to R3.14 billion in the past six months. Revenue increased by 28.1 percent to R239.4 million with arrears reduced to the lowest level in five years at 1.8 percent. Vacancies were contained at 3.5 percent during the reporting period. Wilder said the retail trading environment in South Africa remained under pressure. Fairvest remained confident that distribution growth of 8 to 10 percent for the full year remained achieveable. Shares in Fairvest rose 2.73 percent on the JSE yesterday to close at R2.26.