Fairvest Property delivers on its forecast

JSE-listed Fairvest Property Holdings (FVT) on Thursday reported that it had achieved its forecast distribution of 6c per linked unit for the year ended June 2013.

The company said 2013 “marked the start of the 'new' Fairvest with the transfer of 18 properties during the first quarter of 2013‚ taking the property portfolio from 10 smaller assets to a portfolio of 28 assets valued at R770.3m”.

Fairvest said its strategies “are starting to crystallise”.

During the year‚ the company raised R349m through new equity‚ and increased its market capitalisation from R107.2m to R503.7m. Its conversion to a real estate investment trust (Reit) was approved by the JSE with effect from July 1.

The company said its forecast distribution for the 12 months ending June 2014 of 14.06c per linked unit “remains achievable”.

“We will continue to focus on growing the portfolio through strategic value-enhancing acquisitions‚ coupled with a focus on improving the quality of the portfolio through the acquisition of larger centres that dominate in the area in which they are located.

“Looking forward‚ growth in distributions will be delivered through the implementation of strong operational controls‚ tenant optimisation‚ rental escalations and the reduction of vacancies‚” Fairvest said.