Indluplace’s rental residential portfolio performs in line with expectations

Posted On Friday, 13 March 2020 08:30 Published by
Rate this item
(0 votes)

Indluplace Properties, the first and largest rental residential REIT, listed on the JSE, with a portfolio in excess of 9 500 units reaffirmed the position of its portfolio in an investor update published to the market today.


The Company that listed almost five years ago and provides homes to households with incomes ranging from R7 500 to R30 000 per month stated that its portfolio has performed in line with expectations despite prevailing economic conditions that remain extremely difficult.

Indluplace’s ability to attract new, quality tenants and retain existing tenants is displayed by satisfactory occupancy numbers. Aware of the financial pressure customers are under, Carel de Wit, CEO of Indluplace commented: “Although competition for tenants intensified among landlords our team’s enhanced capacity and capabilities stand us in good stead with good letting progress reported across our portfolio, positively impacting vacancies. Letting at Highveld View, Emalahleni was particularly encouraging and our marketing initiatives were very successful, resulting in the complex currently over 95% occupied by individual tenants compared to 33% in February 2019.”  Rental escalations remain subdued for now as utility increases and low economic growth impacts on affordability.

The disposal of small, non-core properties and certain student buildings is progressing well. “Our strategy to dispose of small properties, mainly in the south of Johannesburg as well as the Trifecta student accommodation building in Durban, is nearly complete and we expect these sales to be completed by mid-2020. The proceeds of these sales amounts to approximately R69 million and will be principally applied to reduce bank debt and to fund our capital expenditure programme critical to ensure our assets remain robust in the current environment,” said De Wit.

The process of identifying and disposing of non-core properties continues and Indluplace remains committed to keeping its current loan to value ratio of 36% stable and its balance sheet strong. The potential impact of the global COVID-19 virus pandemic is uncertain and the Company continues to monitor events closely. A communication programme to provide information to tenants has been launched.

Last modified on Tuesday, 17 March 2020 08:39

Most Popular

Deeds Office reopening good news for sellers and buyers of property, as well as the property industry

May 01, 2020
Andrew Golding Golding Property Group
Deeds Office reopening good news for sellers and buyers of property, as well as the…

Wide-spread implications for South Africa’s real estate market following COVID-19

May 05, 2020
JLL, one of the world’s leading real estate investment and advisory firms, today released…

Deeds office reopen their doors to the public

May 09, 2020
Carlize Knoesen
The Department Agriculture, Land Reform and Rural Development has announced the reopening…

Relooking green buildings in the future of the covid-19 pandemic

May 01, 2020
Brett Chrystal
The Covid-19 lockdown has offered us an unexpected opportunity to reflect on our…

SA REIT appoints Joanne Solomon as its first CEO

May 05, 2020
Joanne Solomon new CEO SA REIT Association
With her wealth of financial and property sector experience, Joanne Solomon has been…

Please publish modules in offcanvas position.