SISA NGEBULANA Rebosis will continue to build a diversified portfolio of properties that yielded strong, secure income and higher returns
JSE-listed real estate investment trust (Reit) Rebosis Property Fund reported last month a 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%.
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.