Acquisitions worth R1,7 billion have boosted the asset value of property loan stock company Investec Property Fund to R6 billion, the group said on Thursday announcing its financial results.
The JSE-listed property fund announced its second half distribution growth of 8.6%, resulting in full year growth of 8.2% while simultaneously growing its asset base by 45% and an investment in Australian real estate via acquisition of 18% of newly JSE listed Investec Australia Property Fund.
The company delivered a total distribution for the year of 108.2 cents per share, representing an 8.2% increase in distribution.
Investec Property Fund CEO, Sam Leon said the growth was supported by underling base property portfolio, strong leasing and renewal activity and resultant low vacancy.
“We are pleased with the performance of the Fund with it having continued to deliver good growth in both distribution and assets. The Fund, now at over R6 billion in asset value, is more than 3.6 times bigger than when it listed three years ago,” he said.
The Fund stated that it will continue to incur appropriate expenditure on effective maintenance and operations of the underlying properties as part of its long term focus and tenant retention.
Importantly the Fund has a long weighted average lease expiry profile (WALE) of 4.3 years with more than 38% of leases expiring five years and beyond by value.
In addition the balance sheet has been conservatively managed with gearing levels remaining low.
Taking into account announced and completed acquisitions post year end, the Fund will still be geared at a low 21% with an all in cost of funding of approximately 8.5% and a long dated debt and swap maturity profile of three and four years respectively.
Leon said: “The Fund remains aggressively acquisitive for the right quality assets as demonstrated by our significant growth since listing in April 2011 and continues to benefit from the Investec connection and strong relationships in the market.”
Investec portfolio comprises of 69 properties in South Africa valued at R5.8 billion and a R288.7 million investment in Australia.