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SA Retail Properties year-end results

Posted On Thursday, 06 May 2004 02:00 Published by eProp Commercial Property News
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SA Retail Properties has outperformed market expectations with a 5,7% rise in distributable income to 65,9c a linked unit for the year ended March 31, 2004 (2003: 62,35c).

Property-Housing-ResidentialAnalysts fell short in their forecasts of increased distributable income of up to 3%. The distribution raises the historic yield to 13,2% on the initial listing price in November 2001 of 500c a linked unit, and the loan stock company is currently trading at a 3% premium to its net asset value.

Net rental income from properties was R109,1 million (2003: R96,2 million).

Managing director Peter Sparks says lower interest rates, a buoyant retail sector and improved consumer confidence boosted turnover rental from national tenants. The outlook for the retail property industry remains favourable and the company is well placed to benefit from expected positive consumer confidence in the coming year.

He says the portfolio's vacancy factor of 4,6% (2003: 6,2%) and the expense to income ratio of 29,9% are satisfactory. The portfolio worth nearly R1,1 billion comprises 27 neighbourhood and regional shopping centres.

Acquisitions worth R500 million are in the pipeline. The company has the resources for continued portfolio expansion, while always being mindful of the impact on earnings of new acquisitions, he says.

SA Retail acquired three shopping centres for R160,5 million during the year. The Westwood Village centre in Boksburg was bought for R14,6 million at an initial yield of 14%. Town Square in Constatia Kloof, Johannesburg, was bought for R49,7 million at a 11,5% yield and an undivided half share of Sanlam centre in Pinetown was bought for R96,2 million at a yield of 12%.

A significant upgrade was completed at Eikestad Mall, Stellenbosch, and a Woolworths Foodstore was constructed at Highland Mews, Witbank. A Pick 'n Pay Family Store was built at Coachman's Crossing in Sandton and good progress was made in the R40 million redvelopment of Tokai shopping centre in Cape Town. Planning is advanced on the refurbishment of the East Rand Galleria in Boksburg.

Last modified on Friday, 09 May 2014 16:37

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