Ingenuity Property Investments increases value of asset base 33% to R4.006bn

Posted On Tuesday, 15 November 2016 08:19 Published by
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Ingenuity Property Investments sees its headline earnings per share fall 23% from 4.7c to 3.6c in the year to August amid difficult market conditions.

 Arnold Maresky Ingenuity

Ingenuity Property Investments saw its headline earnings per share fall 23% from 4.7c to 3.6c in the year to August amid difficult market conditions.

During the year under review, the company’s total asset base, including development assets completed, increased in value by R1.092bn or 33%. This meant the investment property portfolio at fair value grew to about R4.006bn from about R3.046bn over the reporting period.

“Ingenuity is pleased to announce its results for the year ended August 31 2016,” said CEO Arnold Maresky.

“The year has been challenging because of poor economic conditions and all-time low business confidence. Despite this, we have been successful in maintaining and enhancing the quality of our assets and growing the sustainable income from the group’s investment portfolio,”

He said Ingenuity had made strides in realising value from its development portfolio. A constraining factor for the year was insufficient capital and higher borrowing costs incurred as a result of debt utilisation and the higher cost of funding.

“We did not believe it appropriate to issue shares to raise new capital whilst our share price traded at such a substantial discount to net asset value as this would dilute interest and return to the existing shareholder base,” Maresky said.

The group announced that no dividend would be paid to shareholders this financial year.

“We believe it prudent to maintain cash in the business to assist with the funding requirements of our substantial development pipeline which is set to commence in the 2017 financial year, as well as to apply excess funds to reduce the higher gearing utilised to fund growth of over R1bn during the year,” said Maresky.

Ingenuity has made a total return of 17.65% year-to-date compared with the SA Listed Property Index’s 9.37%, according to Catalyst Fund Managers.

source: Business Day

Last modified on Tuesday, 15 November 2016 08:32

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