Sisa Ngebulana
JSE-listed real estate investment trust (Reit) Rebosis Property Fund on Thursday reported distribution growth of 8.2% to 52.46c per linked unit for the six months ended February 28, exceeding the forecast 52.38c per linked unit for the interim period.
Rebosis CEO Sisa Ngebulana stated that the Reit would continue to build a diversified portfolio of properties that yielded strong, secure income and higher returns.
He added that, with its market capitalisation up 33.4% to R5.69-billion and assets under management up 12.4% to R7.88-billion, Rebosis’ objective was to grow distributions and long-term capital appreciation of the company’s unitholders.
“There were no acquisitions recorded for this period and this growth is mainly contributed by better portfolio fundamentals and continued operating efficiencies across the portfolio,” said Ngebulana.
Rebosis’ net property income was up 10.1% to R291-million and its net cost to income ratio fell from 13.6% to 12.7% for the period under review.
The total asset value of the company grew to R7.97-billion.
Rebosis’ portfolio had increased by 6.2% year-on-year and was valued at R6.99-billion, with vacancies for the total portfolio of 19 properties at 2.2%.
ACQUISITIONS
In March, Rebosis acquired 62% of Mauritius property development firm New Frontier Properties at a forward income yield of 7.01% and a total investment of R1.18-billion, which was funded through cash, debt and the issue of linked units.
New Frontier has a strategic focus on retail properties in the UK and acquired two retail centres in Burton-Upon-Trent and Middlesbrough, in High Street, in the central business district.
“The New Frontier investment affords Rebosis the opportunity to access offshore retail property exposure and to participate in a UK retail property investment, which provides attractive British pound forward yields. New Frontier’s acquisition pipeline provides significant opportunities for value enhancement within the company’s portfolio,” said Ngebulana.
Meanwhile, he also reiterated Rebosis’ intention to acquire the issued linked capital of property loan stock company Ascension Properties that it does not already own by way of schemes of arrangement.
Rebosis issued a capital conversion circular in March to its unitholders for voting on April 30.
The scheme of arrangements circular was being finalised and would soon be issued to unitholders. Following the consummation of the transaction, which is expected to be June 30, Rebosis’ total asset value would grow in excess of R14-billion.
LOOKING FORWARD
Rebosis revised its forecast distribution growth range from between 6% and 10%, to between 8% and 10% for the full year ending August 31, 2015.
“Rebosis has had a solid first six months of this financial year with year-on-year growth ahead of the initial forecast. This represents true portfolio appreciation with no acquisitions recorded in the period under review. We, however, continue to pursue high-growth opportunities and take advantage of redevelopment opportunities in our shopping centres in light of increasing tenant demand,” concluded Ngebulana.