JSE-listed real estate investment trust (Reit) Arrowhead Properties lifted its dividend a share by 9.52% year-on-year to 40.79c for the six months ended March 31.
Arrowhead’s core property portfolio grew by 8.5% year-on-year to R9.5-billion. It now owned 155 retail, industrial and office properties, as well as, indirectly through its 60% shareholding in fellow JSE-listed Reit Indluplace, 109 residential properties.
“The average [value] of our properties increased from R17-million in 2011 to R46.7 -million, reflecting not only the increase in [value] but also an increase in the quality of the portfolio of assets,” Arrowhead COO Mark Kaplan said at a presentation of the group’s results on Wednesday.
Revenue, inclusive of rental income and expenditure recoverable from tenants, increased from R555-million in the six months to March 2015, to R743-million in the six months under review.
The increase in revenue was attributed to the full effect of the acquisitions concluded during the previous financial year, together with the partial impact of acquisitions concluded during the current financial year and yearly escalations to existing leases.
CFO Imraan Suleman, meanwhile, pointed out that vacancies had reduced to 7.2%, compared with 7.3% as at September 30, 2015.
He noted that with gearing at 23%, Arrowhead was positioned defensively within an uncertain rising interest rate environment.