Rockcastle African real estate operations on track

Posted On Thursday, 15 May 2014 18:00 Published by
Rate this item
(0 votes)

Rockcastle Global Real Estate says its African operations is on track‚ as it released financial results for the nine months to March.

 Craig Hallowes

ALTX-listed Rockcastle Global Real Estate (ROC)‚ one of the Resilient group's (RES's) rand-hedge property plays‚ said its African operations were on track‚ as it released financial results for the nine months to March on Wednesday.

Rockcastle was one of the JSE's top five performing property stocks last year‚ managing a total return of 40%‚ figures from Catalyst Fund Managers showed.

A weak rand encouraged investors to divest out of South Africa and in property abroad instead. Rockcastle said its Kafubu Mall in Ndola‚ Zambia‚ opened shortly after the close of the current financial quarter and was trading well with positive feedback from tenants. Mukuba Mall in Kitwe‚ Zambia‚ was on schedule to open in April 2015.

Rockcastle had also committed to a 26‚000m² mall in Lusaka‚ Zambia‚ with more than 75% Zambian and South African national tenants. More developments in Africa were being evaluated. Rockcastle said its net asset value per share was $1.21 at the end of March 2014. It had been $1.17 at the end of March 2013.

Rockcastle has investments in Canada‚ New Zealand‚ Australia‚ Singapore‚ France‚ the Netherlands‚ Hong Kong‚ the US and UK. Rockcastle CEO Craig Hallowes said the group was pleased with its recent performance.

"Rockcastle continues to maintain its exposure to higher growth‚ quality stocks which are performing in line with expectations. In addition‚ the company continues to actively pursue direct property acquisitions‚" he said.

Rockcastle's board was confident that forecast dividend growth of 4% would be met for the year to June. Old Mutual Investment Group portfolio manager Evan Robins said the dividend growth was comparable to average growth achieved by locally based property companies.

"Rockcastle owns a portfolio of global property shares. "It is also involved with some African direct property ventures but this is still a small portion of the balance sheet.

"The 4% dividend growth is in dollars so in real terms it is decent growth as US inflation is low. "After inflation‚ it is comparable to the real growth rate achieved by many local property companies."

Mr Robins said Rockcastle had‚ furthermore‚ deliberately sold some of its lower-quality higher-yielding global property shares to buy higher quality‚ lower-yielding shares which offer better long-term growth. "This will hurt the dividend growth rate initially‚" Mr Robins said.

Most Popular

Attacq Ltd and Tricolt break ground on Ellipse Waterfall

Aug 30, 2019
 13 2
Today Attacq Ltd the JSE listed REIT developing Waterfall City, and Waterfall Logistics…

Eris Property Group appoints successive CEO Barend de Loor

Aug 30, 2019
 BAREND DE LOOR
Eris Property Group has appointed a new Chief Executive Officer (CEO). Barend de Loor…

Tshwane Regional Mall Grand Opening date set

Aug 31, 2019
  TSHWANE REGIONAL  MALL
24th October 2019, the long-awaited day earmarked for the grand opening of Tshwane…

Cap Rates and Property Values - Is it time for a more significant move?

Aug 19, 2019
FNB John Loos
A few months on from the May general election, a somber mood is once again settling in in…

Eleven new retailers including clicks at morningside shopping centre

Aug 19, 2019
 MORNINGSIDE SHOPPING CENTRE 1
Known for the finest in convenience shopping and its chic and stylish mix of local and…

Please publish modules in offcanvas position.