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Acsion revenue increases fourfold to R453.3m

30th May 2016

By: Anine Kilian

Contributing Editor Online

  

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Releasing its maiden results since listing on the JSE last year, real estate investment trust Acsion reported a 322% increase in revenue year-on-year for the year ended February 29, with the company’s 2015/16 revenue pegged at R453.3-million, compared with a revenue of R107.4-million recorded in the previous financial year.

The company also declared R685.9-million in net profit after tax attributable to ordinary shareholders. This equated to basic and diluted weighted earnings a share of 173.70c and weighted headline earnings a share of 45.88c for the year under review.

As from the date of listing to the year ended February 29 – a 15-month period – the group’s net asset value (NAV) increased by 27.2%, whereas, for the 12-month period to February 29, the NAV increased by 17.7%.

This fell short of the group’s target NAV growth of 20% to 25% a year, though Acsion believes it is on track to deliver on its growth expectations, as the company achieved a rolling average growth in NAV of 21.7%.
 
“I’m satisfied with our overall performance, especially as pressure on consumers continued to increase during the year,” said CEO Kiriakos Anastasiadis at the group’s results presentation on Monday.

After listing on the JSE last year, Acsion’s properties at fair value increased to R4.62-billion from R3.76-billion, owing to fair value increases of existing assets, as well as the inclusion of investment property under development. 

The company was largely ungeared, with a loan-to-value ratio of 4.13%. Expansions, upgrades and current developments were funded from cash generated by its operations.
 
Acsion’s liquidity, adjusted for mortgage bonds prepaid by R162-million, was 2.3 times current liabilities. Mortgage bonds increased from R198-million in the prior financial year to R206-million as at February 29.
 
Meanwhile, the developed portfolio’s weighted average lease expiry by gross lettable area (GLA) remained stable at 4.11, following the completion of the phase-three extension of Mall@Carnival, in Brakpan, which opened in September last year.

Vacancies were similarly low at 4.43% of GLA on a weighted basis.

“Phase three and five of Mall@Carnival, our flagship asset, was completed in this year and commenced trading. These developments further entrenched the mall as a leading regional destination in the catchment areas south-east of Johannesburg,” he said.
 
RENEWABLE ENERGY 
Acsion successfully commissioned its first solar power solution at Mall@Emba, in Mpumulanga, at a cost of R16-million during the reporting period.

The project produced 1 MW of electricity, which would reduce the mall’s reliance on the national grid.

Acsion commissioned similar installations at Mall@Reds, in Centurion, and Mall@Carnival for 2 MW and 4 MW solar plants respectively.

PROJECTS
Construction of two of Acsion’s secured pipeline developments, namely Mall@Carnival phase three and five and Hyde Park Terrace, were completed during the year under review, while construction began on another four developments forming part of its prelisting pipeline, namely Acsiopolis, Mall@55, Trade55 and Mall@Moutsiya.

Acsion also started development at Mall@Mfula, in Mpumulanga, on the back of sufficient national retailer commitments.
 
The combined GLA of these residential and mixed-use developments totalled 126 200 m2 and was currently carried at R830-million.
 
Construction at Acsion’s largest development, Acsiopolis, a 20-story mixed-use development in Benmore, Johannesburg, started during the review period and was scheduled for completion in the beginning of 2019.

Other pipeline development opportunities had been identified such as Offices@Lusaka, a co-development in Zambia with up to 20 000m2 of office space and Mall@Maputo, for which Acsion had signed a memorandum of understanding with the Mozambique Ministry of Sport to develop a 50 000m2 shopping centre on an 8.9 ha piece of land in northern Maputo.

Acsion expects a holding of 85% with 15% held by local partners.
 
“Going forward, we will continue to focus on the completion of the developments in hand, as well as on value-accretive projects in our existing portfolio,” Anastasiadis concluded.
 

Edited by Samantha Herbst
Creamer Media Deputy Editor

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