Rebosis declares interim distribution of 43c per unit
Category Property Fund News
Rebosis Property Fund, the first black-managed and substantially black-held property fund to list on the JSE, on Wednesday reported headline profits of 46.09 cents per linked unit for the six months ended February.
An interim distribution of 43 cents per linked unit was declared for the six month period.
Rebosis Chief Executive, Sisa Ngebulana commented: "We are very pleased with these solid results. The inclusion of Bloed Street Mall in the reporting period and encouraging retail turnover growth of 16% has created positive momentum. The acquisition of 4 commercial properties currently underway is the first step forward in our objective to scale up our asset base to the benefit of our investors."
Rebosis' portfolio consists of 60% shopping centres and 40% office buildings (by value), located in Gauteng and the Eastern Cape. The retail portfolio comprises three exceptional quality shopping malls delivering secure, escalating income growth underpinned by strong anchor and national tenants.
The office portfolio consists of five buildings which are well located in nodes attractive to government tenants - four in Pretoria and one in Braamfontein, Johannesburg. These are mainly let to the National Department of Public Works under long leases. The office portfolio provides a sovereign underpin to a substantial portion of the earnings and shields it from private sector risks such as tenant insolvency and default.
Occupancy across the portfolio is well above the sector average with a vacancy rate at 29 February of 4.1%. New and renewed leases comprise 7,652 m2 of space, made up of 3,757 m2 of new leases and 3,805 m2 of renewed leases respectively. A further 3,653 m2 of new leases were signed with commencement date after the reporting date which drops the portfolio vacancy rate even further to 2.6%.
"We are continuously improving our tenant mix across the retail portfolio" commented Ngebulana.
"Hemingways Mall in East London attracted some exciting new brands with Busby's, Guess, Guess Kids, Forever New, Frasers and Aldo among the fashion brands that recently signed lease contracts. Our active management initiatives at the centres have resulted in enhanced catering and leisure options with the family entertainment centre Electric Avenue opening in April and Spur expected to open mid-year. We also expect Beares to open soon to further compliment the offering.
"Mdantsane City introduced a new gym and refurbished the Fruit & Veg City with a new Checkers Liquor replacing the previous liquor outlet."
Rebosis has also grown its portfolio with the acquisition of four properties being 28 Harrison Street, SASSA Campus, The Revenue Building and 270 Jabu Ndlovu Street with a combined valuation of R543 million. The purchase consideration was R519 million, excluding costs, and will be funded through debt facilities. These acquisitions with a combined gross lettable area of 50,698 m2 are expected to be yield enhancing from the date of transfer on 1 July 2012.
Commenting on the company's prospects, Ngebulana said: "With less than a year since listing, we have entrenched ourselves solidly in our chosen areas of operation, and remain well positioned for future growth.
"The retail properties continue to perform ahead of the industry and vacancies are trending down. In addition to pursuing yield enhancing acquisition opportunities, we have the right of first refusal on Billion Group's R7 billion development pipeline with an additional 370 000 m2 gross lettable area."
The company's target distribution range for the year ending 31 August 2012 remains unchanged at between 85.0 cents and 88.3 cents per linked unit.
Author: Warehouse Finder
