Indluplace FD Carel de Wit
Residential-focused real estate investment trust (Reit) Indluplace has reported better-than-expected distribution for the financial year ended September 30.
The company, which listed on the JSE in June, on Tuesday reported distribution of 28.99c, ahead of the forecast 26.61c.
FD Carel de Wit told Engineering News Online that the revised distribution forecast for the financial year to September 2016 had been increased to 92.55c a share, up over 10% from the 83.79c a share set out in the company’s prospectus.
Meanwhile, revenue for the year under review increased to R157.8-million, compared with the revenue of R37.4-million recorded in the prior financial year, owing to acquisitions that were concluded in the previous financial year, as well as the partial impact of acquisitions concluded in the period under review.
“We increased our portfolio to 95 residential buildings, compared with 30 a year ago by acquiring yield-enhancing properties in the housing market across quality properties,” said De Wit.
He noted that the company’s intention was to grow the portfolio aggressively and enhance the geographical spread across South Africa.
“We are mainly Gauteng-based but we are looking at expanding our nationwide footprint, specifically in the Western Cape, kwaZulu-Natal and the Eastern Cape.”
Acquisitions to the value of R489-million were concluded after year-end. This included the acquisitions of portfolios from Connaught Properties and Prime Residential, which would raise the value of the company’s portfolio by 28% to R2.2-billion.
The acquired portfolios comprised nine high-rise buildings with 1 189 residential units and three low-rise suburban properties with 166 residential units.
“We aim to position ourselves as an exit for developers and owners of residential stock or portfolios. This places us in a unique position going forward, enabling us to grow our portfolio with good-quality stock at the right price,” De Wit pointed out.
He added that the company was confident that it would be able to increase its current pipeline of about R900-million over the coming months to double the portfolio within the first full financial year.