Rebosis Property Fund results fly past expectations

By
Font size: Decrease font Enlarge font
Rebosis Property Fund CEO Sisa Ngebulana  said the past year saw us continue to evolve and differentiate ourselves within the sector as a specialist high-growth property fund. Rebosis Property Fund CEO Sisa Ngebulana said the past year saw us continue to evolve and differentiate ourselves within the sector as a specialist high-growth property fund.

JSE-listed property group Rebosis Property Fund (REB) on Wednesday declared a 7.6% rise in total distribution to 92c per unit in the year to August 2013 compared with the previous year.

Escalated rentals‚ the gearing effect and operating cost efficiencies were the main contributors to the growth in distribution.

Rental income increased by 26.2% to R522.8m‚ with a dominant contribution of 54% from the retail portfolio. Operating efficiencies resulted in an improvement in the net operating cost ratio from 13.5% in 2012 to 12.5% in the year under review.

CEO Sisa Ngebulana said: “The past year saw us continue to evolve and differentiate ourselves within the sector as a specialist high-growth property fund.”

During the reporting period, Rebosis concluded acquisitions totaling 114 978 m2 in GLA for a purchase consideration of R1,76 billion at a yield of 8,8%, resulting in a yield uplift for the portfolio as a whole.

Sunnypark Mall, a well-established dominant retail centre situated in the eastern side of the Pretoria CBD was acquired effective 01 June 2013 for a purchase consideration of R587,5 million settled in cash. In addition, the acquisition of the Antalis property in March for R120 million introduced the first industrial warehouse to Rebosis’ portfolio.

The company also concluded agreements for the acquisition of the Nthwese portfolio for R1,06 billion, comprising four recently refurbished and government tenanted properties in Johannesburg and one in Pretoria.

The group’s overall portfolio consists of 14 properties valued at R5.28 billion‚ including Hemingways Mall‚ the largest retail centre in East London. By value, the portfolio comprises 54% retail, 44% office and 2% industrial. These assets are located in Gauteng, the Eastern Cape, KwaZulu-Natal and the North West Province.

It also raised R1,125 billion through a R650 million oversubscribed rights offer in February and a further R475 million by way of an accelerated one day book build in August 2013. Market capitalisation grew by 40.9% from R3,014 billion to R4,25 billion at year end.

The fund decreased gearing levels from 37.1% to 25.3% as a result of the successful rights offer and accelerated book build completed during the year. Net borrowings equated to R1,336 billion at an average cost of 8.4% of which 77.6% have been hedged.

Rebosis started trading as REIT on the JSE on 01 September 2013.

The fund’s target distribution range for the year ending August 2014 is expected to be between 97c and 99c per linked unit.


NEWSLETTER — GET THE LATEST NEWS IN YOUR INBOX. SIGN UP RIGHT HERE.


Enter your e-mail address below using Lowercase.



Home in 1 | Leading Supplier to Events, Catering & Hospitality Industry