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SA Corporate distribution up 26%

Posted On Friday, 24 August 2007 02:00 Published by eProp Commercial Property News
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'The underlying property portfolio has performed well and has continued to enjoy excellent occupancy levels'

Gerhard van ZylProperty group SA Corporate Real Estate Fund (SAC) reported a 26% rise to 17 cents in distribution per linked unit for the interim period ended June, it reported on Thursday.

Income rose to 277.4 million rand from 153.8 million rand while rental income increased to 210.2 million rand from 133.2 million.

SA Corporate, the third largest property stock by market capitalisation on the JSE, said the distribution for the period included about two cents which arose from SA Retail acquisition.

"The underlying property portfolio has performed well and has continued to enjoy excellent occupancy levels," the company said.

Properties in its portfolio are 98% occupied.

It added that following the revaluation of its portfolio at the end of June, its properties were now worth 328 million rand.

"The bulk of the increase in value has been seen in the industrial portfolio reflecting demand for such property and increased market rentals levels," the group said.

In the last six months, the company bought the 3.4 billion rand property loan stock SA Retail, including the 1 billion rand Sharemax portfolio. In addition four investments were made at the total cost of 208 million rand.

These acquisitions were Forest Road Design & D?cor Centre for 103 million rand, 293 Hebbard Road for 17.5 million rand, Cullinan Jewel Shopping Centre for 45 million rand and the Ridge for 42.5 million rand.

The company is waiting for the Competition Commission's approval ? which is expected by the end of next month - to buy Buffcol Properties for 965 million rand.

At the same time the group has put up for sale properties worth 55 million, in line with its strategic disposal activity which has seen 27 properties worth 281 million been sold over the last two years.

The company's strategic disposal activity aims to improve the overall quality of the portfolio and its earnings growth potential.

After the acquisition of Buffcol has been approved, the group's portfolio would comprise 197 properties with a value of 8 billion rand.

Last modified on Wednesday, 23 April 2014 14:55

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