Fairvest projects 'will boost turnover growth'

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Property company Fairvest said yesterday its portfolio was poised for growth as the company continued to enhance it through extensive maintenance projects.

Fairvest said it was in the process of implementing a new investment strategy and planned to appoint key executives.

The company said that in the short term, the projects would “significantly” affect its turnover growth and operating profits, but it was confident the projects would realise the full potential of its portfolio.

For the year to June the value of the projects was R2,9m, which reduced the company’s operating profits and distributions accordingly. Revenue decreased 12,7% to R17,3m. However, this financial period consisted of 12 months compared with 15 months in the previous year, as a result of a yearend to June from March.

The company’s vacancies remained high, decreasing from 27,8% in the previous year to 21,5%, of which 5% related to an unoccupied property that was sold after year-end, 7,3% to an untenantable property and 3,5% to a property being refurbished, bringing the effective vacancies to 5,7% of the gross leasable area.

Its operating profit dropped 34,1% to R5,9m, while the distribution per linked unit came in at 10,9c from 13,8c, a decrease of 21% from the prior year. Fairvest invested R4,9m in the Australian listed property sector with R3,9m invested in Growthpoint Australia shares and R0,945m in Cromwell Property Group shares.

The company said that listed property investments grew R1,2m during the period under review as a result of favourable exchange rates and increases in the values of the share prices.

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Listed Property / REITs  |  Fairvest Property Holdings Ltd