Ingenuity Property Investments grows asset base by 20%, headline earnings per share up 12%

Posted On Thursday, 05 November 2015 18:12 Published by
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Property development and investment group, Ingenuity Property Investments Ltd, grew its asset base by 20% in the year to end August 2015 with its investment property portfolio increasing to just over R3billion (2014: R2.5billion) and investment property under development to R247million (2014: R183million).

Arnold Maresky Ingenuity

CEO Arnold Maresky says the increase in the asset base was due mainly to acquisitions of new properties, the completion of property developments and fair value adjustments.

Net asset value per share was up 17% at 110c (2014:12%).

Maresky says the size of the enlarged asset base has also increased the Group’s earning capacity with contractual income from investment property growing to R271.9 million (2014: R221.9million).

Headline earnings per share were up 12% to 4.7c. A final cash dividend of 3.5c a share, 40% ahead of the previous year, has been declared.

He said the vacancy percentage of GLA at year end was 3.3% but this has subsequently been reduced to 1.7%, comfortably below the industry norm.

Maresky says development remains a core function of the group and many milestones in this regard had been achieved in the past year creating exciting growth prospects in the years ahead.

These include the development of a mixed use scheme at 117 Strand Street which will comprise 5 000 square metres of retail, 10 000 square metres of premium grade offices and 52 apartments. Formal planning approval has been obtained with construction expected to start early 2016 and completion anticipated in the first quarter of 2018. The total estimated capital expenditure is R560million.

Planning approval for a further building of approximately 17 600 square metres on the Reeds site on the Cape Town Foreshore facing the freeway has been obtained.

In addition the construction of Aurecon 2 at Century City, a  3 281 square metre office block which has been let to Aurecon South Africa on a long lease, is due for completion early 2016.

Maresky said further exciting acquisitions with significant development opportunities had been made since year end.

“This development focus has provided us with a unique ability to extract maximum value in both new grass root developments and building refurbishments, and the group remains well positioned for further good growth. The company has clearly demonstrated its skills and ability to add value.  

“Our predominantly Cape based assets are considered to be very attractive with strong underlying cash flows and excellent prime development opportunities remain in our portfolio.” 

Last modified on Thursday, 05 November 2015 18:54

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