Retail-focused property loan stock company Siyathenga Property Fund said on Wednesday that on an annualised basis its distribution for the period from August - when it listed on the JSE - until June was 1,45% higher than it had forecast.
Siyathenga, which listed on the main board on August 5, announced a distribution of 47c for each linked unit for the period ending June.
The company said this equated to 52c a linked unit on an annualised basis.
Siyathenga MD Andre von Bulow said on Wednesday that low vacancies, high rental rates and strong demand in the retail property sector had boosted the company's performance.
Von Bulow said the overall occupancy rate in the property portfolio was 97,4%.
"That was about a percent above the budgeted numbers. The whole portfolio performed well across the board," he said.
Retail property makes up about 84% of Siyathenga's property portfolio while offices make up about 16%.
The group's portfolio is worth R1,4bn and the company has a market capitalisation of about R660m.
The size of Siyathenga's portfolio increased substantially in April when the company acquired a Transnet Retirement Fund Properties portfolio worth R520m.
"The retail property market has been very buoyant and we have also had good results out of the commercial portfolio," said Von Bulow
He said the company was achieving good retail rental rates.
"We are beginning to see good turnover rentals coming in."
Turnover rental agreements refer to agreements where there are set base rentals.
If a tenant's turnover exceeds certain limits, the tenant then owes more money in terms of the agreement.
"It's a limited participation by the landlord in the success of the tenant," said von Bulow.
He said Siyathenga had turnover rental agreements with a portion of tenants.
"We are introducing these kinds of agreements in all new retail developments."
Siyathenga is also spending about R40m this year revamping the existing Richards Bay Shopping Centre.
Together with sister company Pangbourne, Siyathenga is also considering the construction of a further 32,000m² to extend the shopping centre.
Siyathenga's share price closed unchanged at R5,80 on the JSE on Wednesday.
Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge
