Acucap Properties interim profits surge as vacancies fall

By
Font size: Decrease font Enlarge font
File Photo: Acucap Properties CEO Paul Theodosiou File Photo: Acucap Properties CEO Paul Theodosiou

Acucap Properties on Friday said interim earnings surged more than 30%‚ boosted by the reduction in the number of unoccupied units.

The property group reported diluted headline earnings per linked unit of 260.27c in the six months ended September 2014‚ up 31.7% from the 197.57c recorded in the year-earlier period.

Total vacancies fell to 1.8% during the period from 3% in March this year.

Much of the reduction in vacancies was attributed to the successful refurbishment and letting of the Albion Springs office building‚ the company said.

An interim dividend of 168.01c per share was declared‚ up 5.1% in September 2013.

On Wednesday. Growthpoint Properties reached an agreement for R8.3bn takeover of Acucap, finally gaining exposure to retail assets it has sought for years. 

The all-share deal boosts Growthpoint’s strategy to gain scale, allowing it to attract greater interest from foreign investors, and to diversify its portfolio of assets into what it believes to be high quality retail properties.

Growthpoint in April built up a 34.7% stake in Acucap, which has a large portfolio of retail assets and 15,6% of Sycom.  Acucap currently holds 83.4% of Sycom and 100% of Sycom Property Fund Managers, the fund manager of Sycom Property Fund.

The deal comes after Growthpoint failed to acquire R12 billion Fountainhead Property Trust’s retail portfolio after losing a long-running takeover battle with competitor Redefine Properties.


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


Enter your e-mail address below using Lowercase.