In­terim div­i­dend grows 12.2%

The Star Early Edition - - OPINION & ANALYSIS - – Roy Cokayne

LISTED Investec Prop­erty Fund has re­ported a 12.2 per­cent growth in dis­tri­bu­tions a share to 68.37 cents for the six months to Septem­ber, from 60.91c in the prior pe­riod. The in­terim div­i­dend in­cluded a one-off an­tecedent div­i­dend re­ceived from the Investec Aus­tralia Prop­erty Fund (IAPF) re­lated to the fi­nal sec­ond-half div­i­dend for its 2017 fi­nan­cial year that was re­ceived on shares sub­scribed for in IAPF’s rights of­fer in Fe­bru­ary. On a nor­malised ba­sis, core year-on-year div­i­dend a share growth was 7.2 per­cent. Rev­enue, ex­clud­ing straight-line rental rev­enue ad­just­ment, grew 9 per­cent to R888.5 mil­lion from R814.8m. Va­can­cies were at 2.6 per­cent of the port­fo­lio, but re­duced to 1.6 per­cent post the pe­riod end af­ter the leas­ing of a 13 400m² ware­house in Sil­ver­ton in Pre­to­ria. Nick Ri­ley, fund chief ex­ec­u­tive, said man­age­ment had in­ter­nally fo­cused on se­cur­ing the sus­tain­abil­ity of rev­enue through proac­tive let­ting ac­tiv­ity and early en­gage­ment with clients. Ri­ley said this re­sulted in the leas­ing of 66 per­cent of space ex­pir­ing dur­ing the full year at a pos­i­tive re­ver­sion of 2.4 per­cent, which sig­nif­i­cantly de­risked the fund’s rev­enue line de­spite a chal­leng­ing let­ting en­vi­ron­ment. In­come from the fund’s off­shore port­fo­lio now rep­re­sents 6.7 per­cent of to­tal in­vest­ment in­come and 7.8 per­cent of bal­ance sheet in­vest­ments. Ri­ley said the fund aimed to in­crease its off­shore ex­po­sure from 7.8 per­cent to 20 per­cent in the medium to long term. The fund has main­tained its full-year guid­ance and ex­pects core div­i­dend growth of 7 to 8 per­cent for the year to March.

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