Property fund Rebosis reports profit

Sisa Ngebulana – CEO of Rebosis Property Fund.

JSE-listed black-managed Rebosis Property Fund has reported a profit for the period from its May 17 listing to the end of August.

Headline profit for each linked unit of 27.94c was reported and a maiden distribution of 22.25c per linked unit was declared for the period.

The distribution would have been 22.95c for each linked unit, but at 22.25c, it is 2.8% below the prelisting forecast of 22.91c for the same period, mainly as a result of the delay in the transfer of Bloed Street Mall, which CEO Sisa Ngebulana attributed to local government elections and a deferral in the new council.

However, Ngebulana said that the transfer of Bloed Street Mall was expected to be concluded by the end of this month and that the transfer would increase the group's gearing ratio from 33.9% to 39.8%

Further, he pointed out that the fund was also reliant on government leases. “Forty percent of the portfolio is underpinned by secured long-term commercial government leases, with overall retail and commercial occupancy levels currently at 97%.”

He added that the retail portfolio has shown a turnover growth of 19% for its Hemingways Mall and Mdantsane City, situated in East London.

Meanwhile, the company which was also the first to list under the new Companies Act, said that it is well positioned for future growth, with the right of first refusal on about eight properties listed in property group the Billion Group’s development pipeline, which will see a multi-city pipeline providing better geographic diversity, valued at R7-billion.

“Panic in the market provides opportunity, and we are looking to invest in projects particularly when consumers are not buying, to be ready when the market is level and consumers start buying again,” Ngebulana said.

The company, South Africa’s first black-managed property fund, raised about R1.66-billion on listing in May.