Equites reports favourable FY distribution growth
JSE-listed Equites Property Fund achieved an 18.3% year-on-year increase in distributions to 96.6c a share for the year ended February 29.
“The distribution growth reflects the strong property fundamentals of the Equites logistics portfolio,” Equites CEO Andrea Taverna-Turisan said on Thursday.
The company’s net asset value a share increased 14% year-on-year to R12.94, while the fair value of its property portfolio increased 187% to R4.1-billion.
When Equites listed on the JSE in June 2014 it set itself a target to expand its portfolio to R4-billion by June 2019.
“We have exceeded our R4-billion target three years ahead of schedule and have a significant pipeline of opportunities to continue our growth trajectory,” he said.
The company planned to develop more modern logistics properties for blue-chip tenants on the 36 ha of industrial land it had available in prime logistics nodes. On completion, these developments would add a further R2-billion to Equites’ portfolio.
The company continued to see strong demand for modern distribution centres in the major logistics nodes, supported by the continuing centralisation of distribution by major retailers, increased levels of imports into South Africa and a shift towards online retailing.
“Given the quality of our existing portfolio, we are confident that the company will achieve 10% to 12% distribution growth over the next financial year,” said Taverna-Turisan.
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