Green­bay seeks to lift pay­out

Business Day - - COMPANIES - Alis­tair An­der­son Prop­erty Writer an­der­

Hy­brid prop­erty group Green­bay aims to grow div­i­dends by as much as 25% per year over the next three fi­nan­cial years, it said on Wed­nes­day.

Such div­i­dend growth is based on the as­sump­tions that a sta­ble global macroe­co­nomic en­vi­ron­ment will pre­vail, there will be no fail­ures of listed real es­tate or in­fra­struc­ture in­vest­ment, that no fur­ther di­rect prop­erty and in­fra­struc­ture in­vest­ment will be made, and that the ad­di­tional in­vest­ment in listed se­cu­ri­ties will be funded by debt, among other things, the com­pany said.

Green­bay’s strat­egy is to in­vest in di­rect prop­erty and in­fra­struc­ture as­sets as well as in listed real es­tate and in­fra­struc­ture se­cu­ri­ties.

Green­bay, which is listed in Mau­ri­tius and on the JSE, in­tends to de­clare a div­i­dend of 0.236 euro cents per share.

Fayyaz Mot­tiar, head of listed prop­erty at Absa As­set Man­age­ment, said Green­bay was a very ex­cit­ing in­vest­ment.

“These guys are ex­cel­lent op­er­a­tors. Their gear­ing is very low at 10% and they have an ex­cel­lent bal­ance sheet. They are giv­ing ex­cep­tional div­i­dend growth in hard cur­rency.”

Green­bay had also been “very clever” to in­vest in in­fra­struc­ture as­sets in the de­vel­oped world given the lack of re­cent in­vest­ment in those as­sets, Mot­tiar added.

“They are able to add value to these dis­tressed as­sets. For ex­am­ple, they buy airports and then en­hance the re­tail and lo­gis­tics func­tions of those airports. Green­bay and its di­rec­tors and man­age­ment have his­tor­i­cally shown skill in im­prov­ing and man­ag­ing re­tail and lo­gis­tics as­sets,” he said.

As at Septem­ber 30, Green­bay’s port­fo­lio com­prised 49.1% in listed in­fra­struc­ture, 32.7% in listed real es­tate and 18.2% in di­rect prop­erty.

Green­bay’s net as­set value per share in­creased 22% to 9.59 euro cents in the half-year end­ing in Septem­ber.

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